BANC ONE CORP COLUMBUS OHIO RICHARD D LODGE 46 WHO WAS SENIOR VICE PRESIDENT OF THIS BANK HOLDING COMPANY IN CHARGE OF THE FUNDS MANAGEMENT DIVISION WAS NAMED PRESIDENT OF BANC ONE FUNDS MANAGEMENT CO A NEW UNIT THE APPOINTMENT IS EFFECTIVE IMMEDIATELY HIS RESPONSIBILITIES IN THE NEW POST INCLUDE ASSET AND LIABILITY MANAGEMENT AND INVESTMENT PORTFOLIO MANAGEMENT FOR BANC ONE AND ITS AFFILIATES 9401280195 940128 REUTERS ACQUIRES STAKE IN FIRM NEW YORK REUTERS HOLDINGS PLC SAID IT ACQUIRED A 79 INTEREST IN REALITY TECHNOLOGIES INC ON A FULLY DILUTED BASIS FOR 138 MILLION THE BRITISH INFORMATIONSERVICES COMPANY SAID REALITY TECHNOLOGIES IS A CLOSELY HELD PENNSYLVANIABASED COMPANY THAT DEVELOPS PERSONALINVESTMENT TECHNOLOGY REALITY TECHNOLOGIES MARKETS ITS INVESTMENT SOFTWARE AND ONLINE SERVICES JOINTLY WITH TIME WARNER INC'S MONEY MAGAZINE IT DEVELOPS AND SELLS PERSONAL FINANCIALPLANNING SOFTWARE CALLED WEALTHBUILDER BY MONEY MAGAZINE 9401280194 940128 AKZO HOLDERS CLEAR MERGER AMSTERDAM SHAREHOLDERS OF THE DUTCH CHEMICAL GROUP AKZO NV APPROVED THE PREVIOUSLY ANNOUNCED MERGER WITH NOBEL INDUSTRIES AB OF SWEDEN THE STOCKHOLDERS ALSO APPROVED THE ISSUE OF UP TO 17 MILLION AKZO SHARES TO FINANCE THE TAKEOVER OF NOBEL IN AN OFFER OF STOCK AND CASH AN AKZO SPOKESMAN SAID NOW THAT THE MERGER AND THE SHARE ISSUE HAVE BEEN APPROVED BY STOCKHOLDERS HIS COMPANY CAN GO AHEAD WITH THE PUBLIC TENDER OFFER FOR NOBEL IN THE COMING DAYS THE OFFER LIKELY WILL CLOSE IN MIDFEBRUARY 9401280193 940128 RESULTS AT THERMO CARDIOSYSTEMS SEEN IMPROVING IN QUARTER WOBURN MASS THERMO CARDIOSYSTEMS INC IN THE EARLY STAGES OF MARKETING ITS HEARTPUMP DEVICE EXPECTS FOURTHQUARTER NET INCOME OF ABOUT 160000 OR ONE CENT A SHARE ON 11 MILLION IN REVENUE VICTOR POIRIER CHIEF EXECUTIVE OFFICER SAID RESULTS WERE AIDED BY GROWING USE OF ITS HEARTMATE LEFT VENTRICULARASSIST DEVICE IT IS NOW SOLD ABROAD AND HAS BEEN RECOMMENDED FOR APPROVAL FOR US SALE IN THE YEAREARLIER FOURTH QUARTER THERMO CARDIOSYSTEMS HAD A NET LOSS OF 24000 ON REVENUE OF 581000 SINCE THEN ITS STOCK HAS SPLIT 2 FOR 1 FOR THE FULL YEAR MR POIRIER SAID THERMO CARDIOSYSTEMS EXPECTS TO REPORT NET INCOME OF ABOUT 405000 OR TWO CENTS A SHARE UP FROM NET OF 18000 IN 1992 REVENUE GREW TO 35 MILLION FROM 24 MILLION MR POIRIER SAID HE EXPECTS THERMO CARDIOSYSTEMS THIS YEAR TO DOUBLE NET INCOME AND REVENUE THE COMPANY EXPECTS TOTAL HEARTMATE IMPLANTS THIS YEAR OF 200 TO 300 UP FROM LAST YEAR'S 80 THE DEVICE PUMPS BLOOD TO ASSIST WEAK HEARTS IN DECEMBER A US FOOD AND DRUG ADMINISTRATION PANEL RECOMMENDED FDA APPROVAL OF HEARTMATE FOR SEVERELY ILL CARDIAC PATIENTS AWAITING HEART TRANSPLANTS THERE ARE ABOUT 2000 TRANSPLANTS ANNUALLY MR POIRIER SAID HE EXPECTS FINAL FDA APPROVAL BY JULY THE UNIT WHICH COSTS ABOUT 30000 IS SURGICALLY IMPLANTED AND POWERED BY A PORTABLE BRIEFCASESIZED AIR COMPRESSOR THAT REMAINS OUTSIDE THE BODY MR POIRIER SAID A SMALLER BATTERYPOWERED VERSION IS PLANNED MEANWHILE MR POIRIER SAID THE FDA HAS CLEARED HEARTMATE FOR SHIPMENT TO 14 FOREIGN COUNTRIES IN SEVEN INCLUDING BRITAIN FRANCE ITALY SWEDEN TAIWAN SAUDI ARABIA AND THE NETHERLANDS IT MAY BE SOLD COMMERCIALLY HE SAID MR POIRIER SAID THAT ULTIMATELY THERMO CARDIOSYSTEMS HOPES TO SELL HEARTMATE TO THE 200000 PEOPLE IN THE US WHO ARE IN A SLOW DEBILITATING PROCESS WHEN THEIR HEART HAS LOST THE ABILITY TO PUMP NORMALLY 9401280192 940128 UNIVERSAL FOODS CORP MILWAUKEE UNIVERSAL FOODS CORP SAID ITS BOARD HAS AUTHORIZED THE REPURCHASE OF AS MANY AS 25 MILLION SHARES OR ABOUT 10 OF THE COMPANY'S COMMON STOCK IN A NEWS RELEASE THE COMPANY SAID THE SHARES MAY BE REPURCHASED OVER A NUMBER OF YEARS AND USED FOR A VARIETY OF CORPORATE PURPOSES UNIVERSAL FOODS REPURCHASED 451000 SHARES OR ABOUT 17 OF COMPANY STOCK OUTSTANDING DURING THE FOURTH QUARTER OF 1993 AND THE FIRST WEEK IN 1994 THAT DEPLETED AN AUTHORIZED AMOUNT APPROVED BY THE BOARD IN 1984 9401280191 940128 WHO'S NEWS MEDUSA CORP MEDUSA CORP CLEVELAND JOHN P SIEGFRIED 55 YEARS OLD SECRETARY AND GENERAL COUNSEL WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS MAKER OF PORTLAND AND MASONRY CEMENTS AND MINER AND PROCESSOR OF AGGREGATES AND INDUSTRIAL LIMESTONE PRODUCTS MR SIEGFRIED IS RESPONSIBLE FOR MEDUSA'S LEGAL AFFAIRS REAL ESTATE EXECUTIVE BENEFITS AND SHAREHOLDER RELATIONS FUNCTIONS THE COMPANY ALSO PROVIDES CONSTRUCTION SERVICES FOR HIGHWAY SAFETY 9401280190 940128 LEISURE & ARTS A QUAKE SURVIVAL STORY BY JOE MORGENSTERN SANTA MONICA CALIF DAYS AFTER THE EARTHQUAKE PEOPLE HERE WERE STILL WAITING FOR THE DEVASTATION AROUND THEM TO SHOW UP ON THE TV NEWS CHOPPER 2 THE EYEWITNESS NEWS VANS AND ALL THE OTHER MEDIATORS OF LOCAL REALITY CONCENTRATED ON IMAGES OF DEATH AND DISLOCATION NEAR THE EPICENTER 13 MILES AWAY IN NORTHRIDGE THEY DOTED ON RUPTURED GAS LINES IN THE SAN FERNANDO VALLEY AND SHATTERED FREEWAYS NEAR SYLMAR YET THEY FAILED TO FOCUS ON THIS SEASIDE COMMUNITY OF HITHERTO SERENE BEAUTY MAYBE SANTA MONICA DOESN'T LOOK SERIOUS ENOUGH TO SUFFER MAYBE THE BEAUTY BEGUILED NEWS MANAGERS INTO THINKING WE HAD BREEZED THROUGH THE UPHEAVAL UNSCATHED JUST AS WE'D DONE IN 1992 DURING THE RIOTS AND IN 1993 DURING THE FIRES THAT NEVER SINGED SO MUCH AS A FROND OF OUR STATELY PALMS WHATEVER THE CASE WE STRUGGLED WITH COGNITIVE DISSONANCE NOT TO MENTION WRECKED NEIGHBORHOODS AND SHATTERED LANDMARKS WHAT RIGHT DID WE HAVE TO FEEL UNDONE IF TV NEWS HADN'T CERTIFIED OUR UNDOING THEN THE CAMERAS FINALLY MOVED IN WE SAW HOW WE LOOKED AND SOON FELT VINDICATED IN THE EYES OF WHAT WE HAD CONSIDERED THE REAL WORLD THIS IS NOT TO SAY THAT WE HAVE TURNED INTO A TENT CITY WITH THOUSANDS OF HOMELESS LINING UP FOR FOOD STAMPS AND POTABLE WATER AS IN OTHER AREAS OF LOS ANGELES MANY HOMEOWNERS HERE WOKE UP ON THE FATEFUL MORNING TO NOTHING WORSE THAN FALLEN CHIMNEYS BROKEN GLASS AND KITCHEN FLOORS AWASH IN OLIVE OIL COLD PRESSED EXTRA VIRGIN AND PURE MAPLE AS OPPOSED TO AUNT JEMIMA'S SYRUP BUT THE REAL SANTA MONICA IS MUCH MORE THAN ELEGANT HOMES HYPERCHIC SHOPS ON MONTANA AVENUE ROCK STARS IN RESIDENCE AT THE SHANGRILA HOTEL AND ELIZABETH TAYLOR PERIODICALLY IN EXTREMIS AT SAINT JOHN'S HOSPITAL IT'S A CITY OF RENTERS STRINGENT RENTCONTROL LAWS A LEGACY OF TOM HAYDEN'S CRYPTORADICAL TAKEOVER OF THE CITY COUNCIL TWO DECADES AGO AND SINGULAR POLITICS UNTIL HIS RECENT REMOVAL FROM OFFICE THE CITY ATTORNEY REFUSED TO PROSECUTE HOMELESS PERSONS ARRESTED FOR SLEEPING IN PARKS NOW IT'S ALSO THE RENTERS WHO ARE WITHOUT HOMES IF NOT LITERALLY HOMELESS FOR THE EARTHQUAKE'S GREATEST IMPACT IN SANTA MONICA WAS ON HUNDREDS OF FRAMEANDSTUCCO APARTMENT BUILDINGS THAT WERE SUPPOSED TO WITHSTAND A 66 RICHTERSCALE SHAKER AND DIDN'T OF THE 26 APARTMENT BUILDINGS ON MY BLOCK OF SAN VICENTE BOULEVARD A THOROUGHFARE GRACED WITH CORAL TREES ON A BROAD MEDIAN STRIP ONE HAS ALREADY BEEN BULLDOZED WHILE HALF A DOZEN INCLUDING MINE HAVE BEEN DECLARED UNSAFE AND SUMMARILY EVACUATED I HAVE NO WAY OF KNOWING WHETHER OR WHEN MY BUILDING WILL BE REPAIRED BUT THE EXPLOSIVE VIOLENCE THAT SEIZED IT AND ME WAS GREAT ENOUGH TO MAKE ME THINK I WAS GOING TO DIE NOW THAT I HAVEN'T I FIND MYSELF GRATEFUL TO THE RICKETY PILE FOR NOT FALLING COMPLETELY DOWN AND FULL OF UNEXPECTED AFFECTION FOR THE CITY THAT I LIKE THE TV PEOPLE HAD RARELY TAKEN SERIOUSLY I'M GLAD THAT THE FIRESIDE MARKET ON MONTANA AVENUE WILL SOON BE IN BUSINESS AGAIN IT'S NOT JUST A THEMEPARK VERSION OF AN OLDFASHIONED GROCERY STORE BUT A CHEERFUL PLACE ALBEIT AN OVERPRICED ONE WHERE CHECKOUT CLERKS KNOW THE CUSTOMERS' NAMES I'M RELIEVED THAT THE AERO THEATER PLANS TO REOPEN WITHIN A WEEK AND RESUME ITS POLICY OF DOUBLE FEATURES PLUS POPCORN WITH REAL BUTTER ONE OF THE LAST NEIGHBORHOOD MOVIE HOUSES IN THE AREA THE AERO WAS BUILT DURING WORLD WAR II TO GIVE AROUNDTHECLOCK SHIFT WORKERS AT NEARBY DOUGLAS AIRCRAFT A PLACE TO RELAX I'M ENCOURAGED THAT THE WEDNESDAY FARMERS' MARKET WILL GO ON ONE OF THE GREAT ANOMALOUS PLEASURES OF LIVING HERE HAS BEEN BUYING FRESH PRODUCE FROM GENUINE FARMERS IN THE HEART OF THE HIP DOWNTOWN THOUGH SEISMIC INSULTS TO A NEARBY PARKING STRUCTURE HAVE FORCED THE MARKET INTO TEMPORARY QUARTERS ON THE UNFASHIONABLE OUTSKIRTS I'M PLEASED THAT THE MAIN BRANCH OF THE PUBLIC LIBRARY SURVIVED WITH MINOR DAMAGE THOUGH IT'S FRUSTRATING AND A LITTLE WEIRD THAT I CAN GET INTO THE CARD CATALOG VIA MODEM AND MY HOME COMPUTER BUT NOT INTO THE BUILDING WHICH REMAINS CLOSED FOR REPAIRS I'M ALSO AMAZED AT THE NUMBER OF GOOD STORIES THAT THE TV REPORTERS MISSED THE BEST ONE I KNOW INVOLVES A NEIGHBOR IN MY BUILDING ERNIE PURPURA WHO IS 84 YEARS OLD AND WHO DESPITE HIS VIBRANT GOOD HEALTH AND YOUTHFUL SPIRIT HAD A HEART ATTACK WHEN THE EARTHQUAKE HIT ERNIE'S DAUGHTER AND SONINLAW LIVED IN THE BUILDING TOO THEY RUSHED HIM TO SAINT JOHN'S WHERE EMERGENCYROOM DOCTORS GOT HIM STABILIZED IN SHORT ORDER THE NEXT DAY A CARDIOLOGIST FOUND THAT HIS HEART ATTACK HAD DONE NO DAMAGE AND SUGGESTED THAT A BALLOON ANGIOPLASTY MIGHT BE THE NEXT STEP BUT AN ANGIOGRAM SHOWED CORONARY ARTERIES SO OCCLUDED THAT THE DOCTOR UPPED THE ANTE TO A QUADRUPLE BYPASS AN OPTION THAT HIS PATIENT EAGERLY EMBRACED THE SURGERY BEGAN AT 730 THE NEXT MORNING THREE DAYS AFTER THE EARTHQUAKE AT 11 O'CLOCK AS ERNIE LAY WITH HIS CHEST SPLIT ASUNDER A SECURITY GUARD WEARING A SURGICAL MASK AND GOWN CAME INTO THE OPERATING ROOM ANNOUNCED THAT THE HOSPITAL WAS BEING EVACUATED BECAUSE OF NEWLY DISCOVERED STRUCTURAL DAMAGE AND TOLD THE FOUR DOCTORS IN THE SURGICAL TEAM TO FINISH UP AS FAST AS THEY COULD THEY DID NOT FINISH UP AS FAST AS THEY COULD THEY FINISHED UP WHEN THEY FINISHED UP AT 130 PM BY WHICH TIME THE HOSPITAL WAS COMPLETELY EMPTY EXCEPT FOR THEM THEIR NURSES AND THEIR PATIENT THEN THE FOUR DOCTORS LOADED ERNIE INTO AN AMBULANCE WITH A HELICOPTER STANDING BY IF TRAFFIC PROVED TOO SLOW AND RODE WITH HIM TO NEARBY UCLA MEDICAL CENTER WHERE HE WAS WHISKED INTO AN INTENSIVECARE UNIT TWO DAYS LATER HE WAS EATING JELLO AND THE DAY AFTER THAT HE WAS ON HIS FEET TALKING A BLUE STREAK NOW I THINK OF MY NEIGHBOR ERNIE EVERY TIME I HEAR ABOUT EARTHQUAKE RECOVERY ON THE TV NEWS MR MORGENSTERN IS A JOURNALIST AND SCREENWRITER IN SANTA MONICA 9401280189 940128 WHO'S NEWS FORD MOTOR CO FORD MOTOR CO DEARBORN MICH WALTER HAYES 69 WILL RETIRE TUESDAY AS CHAIRMAN OF FORD'S ASTON MARTIN LAGONDA GROUP FORD ACQUIRED A MAJORITY STAKE IN ASTON MARTIN IN 1987 MR HAYES JOINED ASTON MARTIN'S BOARD IN 1990 AND BECAME CHAIRMAN A YEAR LATER FORD SAID MR HAYES WILL CONTINUE AS A NONEXECUTIVE DIRECTOR JOHN OLDFIELD 57 VICE PRESIDENT OF PRODUCT PROGRAMS VEHICLE ENGINEERING AND DESIGN FOR FORD OF EUROPE WILL SUCCEED MR HAYES SUCCEEDING MR OLDFIELD IS RICHARD PARRYJONES 42 CHIEF ENGINEER OF VEHICLE ENGINEERING FOR FORD OF EUROPE 9401280188 940128 INTERNATIONAL WORLD ECONOMY APEC MAY FINALLY DRAFT RULES TO LEVEL PLAYING FIELD FOR FOREIGN INVESTMENT BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NOTHING'S PERFECT INVESTING IN EAST ASIA IS OFTEN A WONDERFUL WAY TO PUT CORPORATE CASH TO WORK BUT DOING SO COULD BE MADE A LOT EASIER THAT'S BECAUSE MANY PACIFIC RIM STATES SHARPLY LIMIT WHAT FOREIGNERS CAN DO ON THEIR TURF WITH STRICT RULES THAT CAN DISTORT OR EVEN PREVENT SOUND INVESTMENTS THESE PRACTICES MAY SHIELD LOCAL INTERESTS FROM UNWANTED COMPETITION BUT OVER TIME CAN HARM WHOLE ECONOMIES AS WELL AS THE OUTSIDERS CONCERNED SOMETHING IS FINALLY BEING DONE ABOUT IT THE FLEDGLING ASIA PACIFIC ECONOMIC COOPERATION GROUP HAS BEGUN DRAFTING AN INVESTMENT CODE A SET OF COMMON RULES TO BE APPLIED UNIFORMLY BY 18 NATIONS AROUND THE PACIFIC RIM ATTRACTING INVESTORS WHO MAY NOW FEEL DISCOURAGED AND SINCE TRADE FOLLOWS INVESTMENT OVERALL COMMERCE SHOULD GROW IN THE PROCESS ABOLISHING PROTECTIVE LAWS IS A NECESSARY EVIL SAYS A SOUTH KOREAN DIPLOMAT WHOSE GOVERNMENT PROMISES TO REFORM ITS OWN BAD HABITS WITHOUT EXPANDING OUR TRADE THERE IS NO WAY WE CAN PROSPER THE POLITICAL IMPETUS CAME LAST NOVEMBER WHEN PRESIDENT CLINTON HOSTED APEC LEADERS ON A WET WINDY ISLAND NEAR SEATTLE THESE LEADERS THEN TOLD BUREAUCRATS TO HAVE NEW GUIDELINES READY FOR NEXT NOVEMBER WHEN THE SUMMITEERS GATHER AGAIN IN JAKARTA THEY WANT A CODE VOLUNTARY RATHER THAN MANDATORY AS A TANGIBLE ACCOMPLISHMENT BY APEC WHICH IS SOMETIMES CRITICIZED FOR HAVING MORE FORM THAN SUBSTANCE THE PROCESS HAS BEGUN THE APEC SECRETARIAT IN SINGAPORE HAS GATHERED MEMBERS' OFFICIAL INVESTMENT RULES INTO A SINGLE PUBLICATION AS A BUSINESS GUIDE THOUGH UNWRITTEN RULES CAN BE MORE IMPORTANT AND OFFICIALS FROM MEMBER STATES WILL DISCUSS THE TOPIC NEXT WEEK IN JAKARTA DURING THEIR FIRST SESSION OF 1994 JUST HOW FAR THEY CAN GET REMAINS UNCERTAIN FOR THE RESTRICTIONS AREN'T THERE BY ACCIDENT THEY OFTEN PROTECT SPECIAL INTERESTS OR FORCE OVERSEAS INVESTORS TO GIVE LOCALS A PIECE OF THE ACTION AS THE PRICE OF ADMISSION THE PRIVILEGED FEW CAN INCLUDE SHOE TEXTILE AND TOY MAKERS IN SOUTH KOREA BUSINESSES OWNED BY MALAYSIA'S RULING PARTY THE 40 OR SO FAMILIES THAT HOLD MOST FILIPINO WEALTH THAI FAMILIES THAT CONTROL BANKING THERE AND THE PRESIDENT'S RELATIVES IN INDONESIA THERE'S A LOT OF LOCAL POLITICS TO DEAL WITH SAYS A US BUSINESSMEN THEY'LL USE THEIR PREROGATIVES TO PROTECT THEIR INTERESTS UNTIL THEY CAN'T DO IT ANYMORE A RECENT SURVEY OF 48 MAJOR US COMPANIES WITH EXTENSIVE ASIAN EXPERIENCE MEANT TO HELP US NEGOTIATORS IN APEC MEETINGS SURFACED MANY COMPLAINTS AMONG THEM NATIONAL TREATMENT SOME COUNTRIES DISCRIMINATE AGAINST OUTSIDERS IN MALAYSIA AND THE PHILIPPINES FOREIGNERS CAN'T OWN LAND ELSEWHERE INSURANCE COMPANIES CAN'T MAKE CERTAIN LOCAL INVESTMENTS THAT ARE OPEN TO THEIR DOMESTIC RIVALS THE 48 COMPANIES PUT EQUAL TREATMENT FOR ALL NEAR THE TOP OF THEIR WISH LIST JOINT VENTURES HAVING A LOCAL PARTNER IS OFTEN GOOD BUSINESS BUT SOMETIMES IT'S MANDATORY INDONESIA FOR EXAMPLE DEMANDS THAT AT LEAST 20 OF ANY PROJECT BE HELD LOCALLY EVEN AUSTRALIA REQUIRES COMPANIES TO INVEST LOCALLY IF THEY WANT TO SELL LOCALLY SUCH RULES CAN PREVENT BUSINESSES FROM HAVING REGIONAL STRATEGIES OR GIVE THEM PARTNERS THEY DON'T REALLY LIKE EXPORTS COMMUNICATIONS COMPANIES THAT SELL TO AUSTRALIA'S GOVERNMENT MUST MEET SPECIFIC EXPORT REQUIREMENTS TO KEEP THAT BUSINESS MALAYSIA WON'T LET A FOREIGNER OWN 100 OF A LOCAL SUBSIDIARY UNLESS IT MEETS EXPORT OR OTHER GOALS FOREIGNERS SAY THIS CAN LEAD TO INEFFICIENCY SCREENING COMPANIES CALL THE PROCESS OF GETTING OFFICIAL APPROVALS LONG COMPLEX AND COSTLY THEY OFTEN FIND IT CORRUPT AS WELL NOTABLY IN SOUTH KOREA MALAYSIA AND INDONESIA AND IN JAPAN AND KOREA THEY SUSPECT IT'S DESIGNED TO EXTRACT BUSINESS AND TECHNICAL SECRETS THEY'D WELCOME A CODE WITH SIMPLER MORE TRANSPARENT PROCEDURES SUCH BARRIERS HAVE CAUSED COMPANIES TO VETO INVESTMENTS IN CHINA KOREA AND INDONESIA AMONG OTHERS THOUGH MULTINATIONALS OFTEN FIND WAYS AROUND RESTRICTIONS THOSE WITH LESS OVERSEAS EXPERIENCE CAN BE FRIGHTENED AWAY HALTING PROJECTS THAT COULD BENEFIT BOTH SIDES EXECUTIVES SAY THRIVING PACIFIC ECONOMIES NO LONGER NEED THESE ANTIQUATED PROTECTIONS A STANDARDIZED CODE SHOULD INCREASE INVESTMENT SPUR GROWTH AND SET AN EXAMPLE FOR OTHER REGIONS BUT GIVEN THE POLITICS INVOLVED MANY DON'T EXPECT TO SEE ONE BY NOVEMBER 9401280187 940128 WHO'S NEWS CRSS INC CRSS INC HOUSTON LARRY E TEMPLE 58 YEARS OLD WAS NAMED TO THE BOARD OF THIS DESIGN AND CONSTRUCTION FIRM INCREASING THE NUMBER OF MEMBERS TO EIGHT MR TEMPLE AN ATTORNEY HAS A PRIVATE PRACTICE IN AUSTIN TEXAS 9401280186 940128 JAPAN'S MITSUI MINING LOWERS PROFIT FORECAST CANCELS DIVIDEND PLANS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE NONFERROUS METALS CONCERN MITSUI MINING & SMELTING CO LOWERED ITS FORECASTS FOR BOTH CONSOLIDATED AND UNCONSOLIDATED EARNINGS AND CANCELED ITS PLANS FOR PAYING DIVIDENDS IN THE FISCAL YEAR ENDING MARCH 31 THE COMPANY ALSO OUTLINED NEW RESTRUCTURING MEASURES INCLUDING PULLING OUT OF THE LEAD REFINING BUSINESS CUTTING SALARIES AND SLIMMING ITS WORK FORCE 11 THROUGH AN EARLY RETIREMENT PROGRAM ON A CONSOLIDATED BASIS MITSUI MINING & SMELTING SAID IT NOW EXPECTS ITS PRETAX LOSS TO WIDEN TO 460 BILLION YEN 418 MILLION FROM 246 BILLION YEN A YEAR EARLIER AT THE START OF THE FISCAL YEAR THE COMPANY HAD FORECAST A RETURN TO CONSOLIDATED PROFITABILITY MITSUI MINING & SMELTING SAID ITS RESTRUCTURING PLAN WILL BRING ABOUT A RETURN TO PROFITABILITY AND EVENTUALLY WILL INCREASE PROFITS EVEN IN TIMES OF SLOW GROWTH THE COMPANY SAID IT FORESEES CONTINUED ECONOMIC WEAKNESS IN THE COMING FISCAL YEAR WEIGHING ON REVENUE THE COMPANY SAID IT WILL STOP SMELTING LEAD AT ITS KAMIOKA PLANT AND SHIFT ACTIVITIES THERE TO RECYCLING SPENT BATTERY MATERIALS MITSUI MINING & SMELTING SAID IT WILL CONSIGN SOME SMELTING ACTIVITIES TO OTHER COMPANIES MITSUI MINING & SMELTING ALSO SAID IT WILL STOP OPERATIONS OF ITS MIIKE RARE METALS AND RARE EARTH FACILITIES AND INSTEAD BEGIN IMPORTING THE MATERIALS THE COMPANY SAID IT WOULD ALSO STRENGTHEN ITS ELECTRONIC MATERIALS OPERATIONS INCREASING OUTPUT TO MEET THE GROWING DEMAND FOR MATERIALS USED IN LIQUID CRYSTAL DISPLAYS AND SHIFTING PRODUCTION OVERSEAS AS ITS CUSTOMERS DO SO AS WELL THE COMPANY ALSO SAID IT WOULD REDUCE STAFFING OF ITS PARENT COMPANY AND FIVE SUBSIDIARIES BY 500 WORKERS OR 11 TO 4360 WORKERS THROUGH AN EARLY RETIREMENT PROGRAM IT SAID THE REDUCTION WOULD BE COMPLETED BY THE END OF JUNE 1996 THE COMPANY SAID IT ALSO PLANS TO CUT WAGES OVER THE NEXT TWO YEARS BUT DIDN'T PROVIDE DETAILS 9401280185 940128 FOREIGN EXCHANGE DOLLAR TAKES PLUNGE AS GERMANY'S KOHL IS THOUGHT TO DISAVOW INTEREST RATE CUTS BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SUDDEN DOLLAR FREEFALL IN NEW YORK SHOOK SLUGGISH CURRENCY MARKETS AWAKE AND THE MOSTLY TECHNICAL COLLAPSE RAISED QUESTIONS ABOUT WHETHER THE DOLLAR'S SHORTTERM BULL RUN IS OVER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17295 MARKS DOWN FROM 17450 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10855 YEN DOWN FROM 11005 YEN STERLING WAS TRADING AT 15090 UP FROM 14945 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10885 YEN AND AT 17291 MARKS CURRENCY MARKETS HAVE BEEN SLOW ALL WEEK WITH VOLATILITY LIMITED AND VOLUME LOW AMID THE TORPOR HOWEVER THERE HAS BEEN QUIET PRESSURE ON THE DOLLAR GERMAN INTEREST RATES REMAIN WELL ABOVE THOSE IN THE US AND DURING THE WEEK SEVERAL SENIOR OFFICIALS OF THE BUNDESBANK GERMANY'S CENTRAL BANK HAVE SUGGESTED THAT THEY WON'T BE LOWERED ANYTIME SOON THAT HAMPERED THE DOLLAR AS IT BOUNCED REPEATEDLY AGAINST THE TOP OF ITS RECENT RANGE AGAINST THE MARK USJAPAN TRADE TALKS MEANWHILE REMAIN AT AN IMPASSE AND MANY TRADERS FEAR THAT IF THERE ISN'T ANY PROGRESS SOON THE US AGAIN WILL CALL PUBLICLY FOR A STRONGER YEN AS A MEANS TO REDUCE ITS TRADE DEFICIT AND WEAKNESS IN THE JAPANESE GOVERNMENT CAPPED BY PRIME MINISTER MORIHIRO HOSOKAWA'S DECLARATION THURSDAY THAT HE WILL QUIT IF A POLITICAL REFORM LAW ISN'T PASSED HAS HAD MARKETS WONDERING WHETHER THE US WILL FACE A PARTNER UNABLE TO STRIKE A DEAL ON THURSDAY THOSE PRESSURES ON THE DOLLAR EXPLODED LATE IN A MOSTLY UNEVENTFUL DAY A CHAIN REACTION TRIGGERED BY COMMENTS MADE BY GERMAN CHANCELLOR HELMUT KOHL SENT THE US CURRENCY PLUNGING THROUGH ONE SUPPORT LEVEL AFTER ANOTHER IN A SPEECH TO THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND MR KOHL SAID GERMANY'S ECONOMIC PROBLEMS WERE STRUCTURAL AND NOT THE RESULT OF A NORMAL BUSINESS CYCLE SOME TRADERS TOOK THAT AS A SUGGESTION THAT MR KOHL WAS DISAVOWING RATE CUTS AS A WAY TO REVIVE GERMAN GROWTH PEOPLE HAVE ALREADY BEEN GETTING A SENSE FOR SEVERAL DAYS FROM THE BUNDESBANK COMMENTS THAT RATE CUTS ARE A WAY OFF SAID CHRISTOPHER BOURDAIN A CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK BUT IT DEFINITELY HELPED THAT KOHL WAS REPEATING WHAT WE'VE BEEN HEARING THE COMMENTS SENT THE DOLLAR PLUNGING SETTING OFF STOPLOSS ORDERS AT 17430 MARKS AND SET THE STAGE FOR MORE DOLLAR VULNERABLITY LESS THAN TWO HOURS LATER AS EUROPEAN PLAYERS WENT HOME AND MARKETS THINNED TRADERS BEGAN TO ATTACK THE DOLLAR'S VALUE AGAINST THE YEN A FEW LARGE ORDERS RUMORED TO COME FROM OPTIONSMARKET PLAYERS SEEKING PROFIT ON DOLLAR PUTS WERE SUFFICIENT TO PUSH THE DOLLAR THROUGH THE 109YEN LEVEL TRADERS SAID THAT SET OFF MANIC SELLING BY BANKS AND FUNDS THEY ADDED THE DOLLAR'S WEAKNESS AGAINST THE YEN TRANSLATED BACK INTO SELLING FOR MARKS AND WHEN THE US CURRENCY BROKE BELOW A CLOSELYWATCHED LEVEL AT 17350 MARKS IT FELL EVEN FASTER TRADERS SAID THAT PLAYERS WHO HAD BEEN BUYING THE DOLLAR ON DIPS IN RECENT DAYS IN ANTICIPATION OF A RALLY WERE ABANDONING THOSE POSITIONS THUS ACCELERATING THE DOLLAR'S DECLINE THE PLUNGE IRONICALLY CAME ON A DAY THAT SAW THE RELEASE OF YET MORE POSITIVE US ECONOMIC DATA DECEMBER DURABLEGOODS ORDERS WERE UP 22 COMPARED WITH EXPECTATIONS OF A 12 RISE FOR ALL OF 1993 THEY WERE UP 86 THE LARGEST RISE IN FIVE YEARS MEANWHILE THE US TRADE IMBALANCE WITH JAPAN AND THE RESULTING NEGOTIATIONS ON OPENING JAPANESE MARKETS CONTINUE TO BE A MAJOR QUESTION US TREASURY SECRETARY LLOYD BENTSEN SPOKE TWICE DURING THURSDAY'S TRADING ON THE NEED FOR OPEN MARKETS AND HE ADDRESSED THE ISSUE ALMOST EVERY DAY THIS WEEK 9401280184 940128 GE'S EUROPEAN LIGHTING UNIT TO REPORT EARNINGS FOR '93 IN MAJOR TURNAROUND BY SHERYL R LEE SPECIAL TO THE WALL STREET JOURNAL BUDAPEST GENERAL ELECTRIC CO'S STRUGGLING EUROPEAN LIGHTING DIVISION SWUNG TO PROFITABILITY IN 1993 GE CHAIRMAN JOHN WELCH SAID MR WELCH ON A TWODAY VISIT TO HUNGARY THIS WEEK WOULDN'T DISCLOSE EXACT FIGURES FOR THE DIVISION BUT SAID GE LIGHTING EUROPE WILL REPORT PRETAX EARNINGS IN A MIDRANGE SOMEWHERE BETWEEN ZERO AND 25 MILLION THE IMPROVED EARNINGS PICTURE PUTS THE US COMPANY'S EUROPEAN LIGHTING DIVISION ON A STRONGER FOOTING WITH EUROPEAN MARKET LEADERS OSRAM A UNIT OF SIEMENS AG OF GERMANY AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID CHARLES PIEPER CHIEF EXECUTIVE OFFICER AND PRESIDENT OF GE LIGHTING EUROPE THE LATEST NEWS REFLECTS A MAJOR TURNAROUND FOR THE GE UNIT RESULTING IN LARGE PART FROM INTEGRATING OPERATIONS AND MOVING MUCH OF ITS EUROPEAN LIGHTBULB PRODUCTION TO HUNGARY GENERAL ELECTRIC CO OF THE US IS NOT RELATED TO THE BRITISH COMPANY OF THE SAME NAME GE HAS BEEN A TRAILBLAZER IN EASTERN EUROPE FORMING THE FIRST SIZABLE WESTERN JOINT VENTURE IN THE REGION IN 1990 WITH THE HUNGARIAN LIGHTBULB GROUP TUNGSRAM GE PAID 150 MILLION FOR AN INITIAL 50 STAKE IN TUNGSRAM GRADUALLY BOOSTING ITS SHARE TO 99 TUNGSRAM NOW MAKES UP A KEY PART OF GE LIGHTING EUROPE RESTRUCTURING TUNGSRAM OVER THE LAST FOUR YEARS HOWEVER COST GE MUCH MORE THAN EXPECTED GE SAID IT HAD INITIALLY PLANNED TO INVEST 200 MILLION IN TUNGSRAM BUT TO DATE HAS INJECTED 550 MILLION ON TUESDAY IT ANNOUNCED PLANS TO INCREASE ITS INVESTMENT EVEN MORE IN TALKS WITH HUNGARIAN GOVERNMENT OFFICIALS INCLUDING HUNGARY'S NEW PRIME MINISTER PETER BOROSS MR WELCH SAID HE IS COMMITTED TO POURING 30 MILLION TO 50 MILLION A YEAR INTO THE HUNGARIAN ECONOMY THROUGH INVESTMENTS IN TUNGSRAM TUNGSRAM EXPORTS 90 OF ITS PRODUCTS REPRESENTING 3 OF THE COUNTRY'S TOTAL EXPORTS TUNGSRAM IS NOW WELL POSITIONED TO BE A MAJOR FACTOR IN ALL OF EUROPE SAID MR WELCH GE OFFICIALS SAID TUNGSRAM WILL SHOW A NET LOSS FOR 1993 BUT IS EXPECTED TO SWING TO A PROFIT THIS YEAR IN 1992 TUNGSRAM REPORTED A STAGGERING LOSS OF NINE BILLION FORINTS 883 MILLION AT CURRENT EXCHANGE RATES TUNGSRAM HAS RECORDED LOSSES SINCE THE MID1980S A RESULT OF THE DISINTEGRATION OF THE COMECON MARKET MOST OF GE'S INVESTMENT IN TUNGSRAM HAS GONE INTO NEW PRODUCT DEVELOPMENT HUNGARY IS HOME TO FOUR OF THE COMPANY'S NINE ADVANCED RESEARCH AND DEVELOPMENT CENTERS INCLUDING A RESEARCH AND MANUFACTURING FACILITY FOR ENERGYSAVING COMPACT FLUORESCENT BULBS IN ADDITION GE LIGHTING EUROPE IS IN THE PROCESS OF CLOSING THREE OF ITS WESTERN EUROPE MANUFACTURING FACILITIES A 100YEAROLD FACTORY IN VIENNA AND TWO PLANTS IN THE UNITED KINGDOM AND MOVING THAT PRODUCTION TO HUNGARY ABOUT 8500 PEOPLE OR ALMOST HALF OF TUNGSRAM'S LABOR FORCE HAVE BEEN LAID OFF SINCE GE ACQUIRED ITS INITIAL STAKE GE REACHED AGREEMENTS WITH TUNGSRAM'S UNION THIS WEEK PROMISING A WAGE INCREASE IN LINE WITH INFLATION EARLIER GE INDICATED THAT IT MAY BE HIRING BACK SOME OF THE HUNGARIAN WORKERS LAID OFF IN ADDITION TO INVESTING IN HUNGARY'S LIGHTING SECTOR THE GE CHAIRMAN SAID THE COMPANY EXPECTS TO PARTICIPATE IN THE PRIVATIZATION OF HUNGARY'S POWER PLANTS 9401280183 940128 CANADIAN STEEL OUTPUT OFF OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 232501 METRIC TONS IN THE WEEK ENDED SATURDAY A 10 DECLINE FROM 258558 TONS IN THE PREVIOUS WEEK AND A 17 DECLINE FROM 278738 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS 9401280181 940128 WHO'S NEWS RANK ORGANISATION PICKS ICI'S HENDERSON AS ITS NEW CHAIRMAN LONDON RANK ORGANISATION PLC A BRITISH LEISURE CONCERN NAMED SIR DENYS HENDERSON ITS FUTURE CHAIRMAN SIR DENYS 61 YEARS OLD IS CURRENTLY CHAIRMAN OF IMPERIAL CHEMICAL INDUSTRIES PLC AND ZENECA GROUP PLC BUT PLANS TO RETIRE FROM THOSE POSTS IN 1995 HE WILL BECOME A NONEXECUTIVE DIRECTOR AT RANK ON MARCH 1 AND TAKE OVER THE CHAIRMANSHIP OF THE COMPANY NEXT YEAR THE RANK POSITION WILL BE A BIG CHANGE FOR SIR DENYS WHO HAS WORKED SINCE 1957 FOR ICI A SPRAWLING CHEMICALS COMPANY WITH ANNUAL SALES OF 18 BILLION AT ICI HE HAS OVERSEEN THE SPINOFF LAST YEAR OF ZENECA WHICH PRODUCES DRUGS PESTICIDES AND INDUSTRIAL CHEMICALS AND THE SUBSEQUENT STREAMLINING OF BOTH COMPANIES RANK'S ACTIVITIES ARE A WORLD APART FROM THOSE AT ICI AND ZENECA AT RANK SIR DENYS WILL TAKE THE HELM OF A COMPANY WITH SUCH ACTIVITIES AS FILM VIDEOS HOTELS THEME PARKS AND NIGHTCLUBS IT ALSO CONTROLS 49 OF THE PHOTOCOPIER CONCERN RANK XEROX SIR DENYS WILL REPLACE CURRENT RANK CHAIRMAN SIR LESLIE FLETCHER WHO AT AGE 71 HAS BEEN PLANNING TO RETIRE FOR MORE THAN A YEAR 9401280180 940128 US PHYSICAL THERAPY'S CLINICS HOUSTON US PHYSICAL THERAPY INC IS OPENING TWO OUTPATIENT CLINICS DURING FEBRUARY ONE IN NEW JERSEY AND ONE IN OKLAHOMA THE NEW CLINICS ARE PART OF A PLAN TO OPEN EIGHT TO 10 CLINICS DURING THE FIRST THREE MONTHS OF THIS YEAR THE COMPANY SAID 9401280179 940128 WHO'S NEWS NORFOLK SOUTHERN CORP NORFOLK SOUTHERN CORP NORFOLK VA JANE MARGARET O'BRIEN 40 YEARS OLD WAS NAMED A DIRECTOR OF THIS TRANSPORTATION CONCERN FILLING A VACANCY ON THE 12MEMBER BOARD MS O'BRIEN IS PRESIDENT OF HOLLINS COLLEGE IN ROANOKE VA 9401280178 940128 INTERNATIONAL HOSOKAWA FIGHTS FOR REFORM BILLS WITH AN APPEAL TO JAPAN'S VOTERS LEADER HINTS AT QUITTING IF MEASURES FAIL A MOVE THAT COULD ROIL POLITICS BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN HIS BATTLE TO OVERHAUL THIS NATION'S DEMOCRACY PRIME MINISTER MORIHIRO HOSOKAWA IS TURNING TO AN UNUSUAL ALLY FOR A JAPANESE POLITICIAN THE PEOPLE MR HOSOKAWA AND MANY OF HIS CABINET MEMBERS EMERGED THURSDAY FROM THE BACKROOMS WHERE DEALS HAVE LONG BEEN CUT TO MAKE A SERIES OF PUBLIC APPEALS THEIR SPEECHES AMOUNTED TO A CALL TO THE JAPANESE ELECTORATE TO LOBBY BALKING LEGISLATORS TO REVIVE THE TROUBLED POLITICALREFORM BILLS BEFORE SATURDAY'S DEADLINE CALL YOUR LOCAL DIET MEMBERS FAX THEM IF YOU TOO THINK THAT WE MUST CHANGE JAPAN'S POLITICAL ORDER YOU MUST EXPRESS YOUR FEELINGS THROUGH ACTIONS MR HOSOKAWA PLEADED AT A POLITICALREFORM PEP RALLY AT A DOWNTOWN HOTEL THE HIGHLY POPULAR MR HOSOKAWA HINTED THAT HE WOULD STEP DOWN IF THE REFORM BILLS FAILED A MOVE THAT COULD UNLEASH POLITICAL CHAOS THAT THREAT SEEMED AIMED AT BOOSTING THE PRESSURE ON THE OPPOSITION LIBERAL DEMOCRATIC PARTY TO COMPROMISE OVER REFORM INDEED THE HOSOKAWA COALITION'S BASIC STRATEGY IS TO FAN FEARS WITHIN THE OPPOSITION THAT MANY LDP MEMBERS MIGHT LOSE THEIR SEATS IN A SNAP GENERAL ELECTION IF REFORM FAILS THIS ISN'T NECESSARILY A GENUINE REFORM MOVEMENT GROUSED KOICHI KATO A SENIOR LDP PARLIAMENT MEMBER THE OTHER DAY THIS IS A POWER STRUGGLE DESPITE HIS POPULAR APPEAL MR HOSOKAWA FACES LONG ODDS IN HIS FIGHT THE POLITICALREFORM BILLS WHICH ARE DESIGNED TO CURB CORRUPTION AND REWRITE THE NATION'S ELECTORAL SYSTEM PASSED THE LOWER HOUSE OF PARLIAMENT IN NOVEMBER BUT FAILED IN THE UPPER HOUSE LAST WEEK MR HOSOKAWA HAS PLEDGED TO ENACT THE LEGISLATION DURING THE CURRENT PARLIAMENTARY SESSION WHICH ENDS SATURDAY SO FAR THIS WEEK MR HOSOKAWA'S PLAN TO REVIVE REFORM HAS BEEN TO TRY TO BROKER A COMPROMISE BETWEEN THE RULING AND OPPOSITION PARTIES LATE THURSDAY NIGHT COMMITTEELEVEL TALKS AIMED AT SUCH A DEAL BROKE DOWN ON FRIDAY MORNING MR HOSOKAWA WAS REPORTEDLY STEPPING UP THE PRESSURE FOR A SUMMIT WITH LDP LEADER YOHEI KONO IF THAT FAILS THE COALITION CAN SUBMIT THE BILLS FOR ANOTHER VOTE IN THE LOWER HOUSE A SHOWDOWN THAT COULD COME AS SOON AS FRIDAY THE COALITION WOULD THEN NEED A TWOTHIRDS MAJORITY TO MAKE THE BILLS LAW SUCCESS WOULD REQUIRE ACCORDING TO SOME ESTIMATES THE DEFECTION OF AS MANY AS 70 LDP MEMBERS A HIGHLY UNLIKELY PROSPECT MOST POLITICAL EXPERTS SAY STILL EVEN IF THE CURRENT REFORM PACKAGE IS DEFEATED IT ISN'T CERTAIN DESPITE THE THREATS THAT MR HOSOKAWA WOULD LEAVE OFFICE IMMEDIATELY INDEED SOME ANALYSTS BELIEVE THAT EVEN IF REFORM FAILS MR HOSOKAWA MIGHT TRY TO BROKER ANOTHER COMPROMISE THAT WOULD KEEP HIS GOVERNMENT IN POWER TO DEAL WITH SUCH OTHER PRESSING ISSUES AS TAX REDUCTION AND ECONOMIC STIMULUS WHEN THE NEW PARLIAMENTARY SESSION OPENS NEXT WEEK MANY POLITICIANS SAY THAT EVEN IF MR HOSOKAWA CAN'T PASS THE REFORM BILLS THIS WEEK HE CAN ACCOMPLISH THE NEXT BEST THING FURTHER BATTERING THE LDP IT WAS THE DEFECTION OF SEVERAL DOZEN PROREFORM MEMBERS THAT ENDED THE LDP'S FOURDECADE REIGN LAST YEAR A NUMBER OF PROREFORM LDP MEMBERS HAVE QUIT THE PARTY SINCE AND STILL MORE ARE CONSIDERED RIPE FOR COALITION RECRUITING AS MANY AS 30 LDP MEMBERS WILL VOTE FOR THE BILLS EVEN IF PARTY LEADERS FORBID IT SAID PROREFORM LDP LEGISLATOR SENPACHI OHISHI THERE IS A STRONG POSSIBILITY I WILL JOIN THE GROUP IF SATURDAY ARRIVES AND NO SORT OF REFORM PACKAGE PASSES MR HOSOKAWA COULD STEP DOWN OR CALL SNAP ELECTIONS BUT THE TIMING WOULD BE HORRIBLE JAPAN'S ECONOMY IS STUCK IN RECESSION AND NEW ECONOMIC MEASURES ARE ON HOLD BECAUSE OF THE REFORM TUSSLE MR HOSOKAWA IS SCHEDULED TO MEET WITH PRESIDENT CLINTON IN WASHINGTON FEB 11 TO REACH A TRADE AGREEMENT AND A FAILED SUMMIT COULD ESCALATE BILATERAL TENSIONS REFORM OPPONENTS FEAR THEY WOULD GET BLAMED IN ANY IMMINENT ELECTION FOR SUCH TROUBLES THUS EVEN MANY OF MR HOSOKAWA'S DETRACTORS ARE SUGGESTING EVEN BEGGING THAT HE STAY IN OFFICE FOR AWHILE AT LEAST UNTIL THE BUDGET FOR THE NEXT FISCAL YEAR IS PASSED HE'S ALREADY A LAME DUCK SAID TARO NAKAYAMA ONE OF THE LDP'S STRONG OPPONENTS OF THE BILLS BUT HE CAN STAY THURSDAY'S APPEAL BROADCAST ON TELEVISION NEWSCASTS WAS ONLY THE LATEST EXAMPLE OF MR HOSOKAWA'S ATTEMPTS TO CHANGE THE RULES OF JAPAN'S STODGY DEMOCRACY IN THE FINAL YEARS OF THE LDP REIGN POPULAR APPEAL SEEMED ALMOST IRRELEVANT THE MOST IMPORTANT VOTER WAS A POWER BROKER SHIN KANEMARU WHO VIRTUALLY SINGLEHANDEDLY NAMED AND DISMISSED PRIME MINISTERS SINCE TAKING OFFICE IN AUGUST MR HOSOKAWA HAS DISPLAYED UNUSUAL PUBLICRELATIONS SAVVY AND HIS POPULARITY AT ONE POINT SOARED PAST 70 THE HIGHEST ENJOYED BY A POSTWAR JAPANESE LEADER HE USED THE POWER OF THAT POPULARITY TO MAKE THE DIFFICULT DECISION TO END JAPAN'S BAN ON RICE IMPORTS IN DECEMBER SHORTLY AFTER MR HOSOKAWA'S SPEECH THE LEADERS FROM THE TOP PARTIES IN THE COALITION HELD A SEPARATE RUSHHOUR RALLY ATOP A SOUND TRUCK OUTSIDE SHINJUKU STATION A BUSTLING COMMUTER HUB I'VE NEVER BEEN TO SOMETHING LIKE THIS SAID JUNICHI YAMAZAKI A 41YEAROLD TAX ACCOUNTANT WHO STOPPED TO LISTEN IN THE WINTER CHILL BUT DESPITE HIS SUPPORT FOR THE REFORM BILLS MR YAMAZAKI REMAINED SKEPTICAL THAT THE NEW APPROACH WOULD HELP I DON'T THINK IT'S VERY EFFECTIVE HE SAID POINTING TO THE THIN CROWD AS MOST COMMUTERS RUSHED BY WE DON'T HAVE A CUSTOM OF HAVING DISCUSSIONS WITH POLITICIANS 9401280177 940128 PRUDENTIAL'S 1993 NET SLIPPED ONLY 3 DESPITE RESERVES SALOMON PROFIT LEAPED BY MICHAEL SICONOLFI AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC SET ASIDE MORE THAN 430 MILLION IN RESERVES IN 1993 FOR LIMITEDPARTNERSHIP LEGAL CLAIMS FOUR TIMES WHAT THE BROKERAGE FIRM PREDICTED A YEAR AGO DESPITE THE RESERVES THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT MANAGED TO POST 1993 NET INCOME OF 145 MILLION AMID THE BOOM IN TRADING AND UNDERWRITING ON WALL STREET DOWN JUST 3 FROM 1992 FOR WALL STREET 1993 WAS SUCH AN EXCEPTIONALLY GOOD YEAR THAT IT'S GIVEN MANY FIRMS THE OPPORTUNITY TO BE VERY CONSERVATIVE IN PUTTING ASIDE FOR RAINY DAYS WHETHER THOSE RAINY DAYS WERE IN THE PAST OR IN THE FUTURE SAID MICHAEL FLANAGAN AN ANALYST AT LIPPER ANALYTICAL SECURITIES CORP SEPARATELY SALOMON INC SAID 1993 NET ZOOMED 50 TO 827 MILLION OR 701 A SHARE FROM 550 MILLION OR 418 A SHARE THE RESULTS WERE BUOYED BY A THREEFOLD JUMP IN FOURTHQUARTER NET ON STRONG GAINS IN INVESTMENT BANKING AND PROPRIETARY TRADING THE RESULTS UNEXPECTED BY WALL STREET ANALYSTS PROMPTED A 5 JUMP IN THE SHARES OF SALOMON PARENT OF NEW YORK BROKERAGE FIRM SALOMON BROTHERS INC PRUDENTIAL'S RESERVES BRING TO NEARLY 900 MILLION THE TOTAL LEGAL TAB FOR PRUDENTIAL'S SOURED PARTNERSHIPS DURING THE PAST FEW YEARS TO DEAL WITH LAWSUITS BY DISGRUNTLED INVESTORS THE NATION'S FOURTHLARGEST BROKERAGE FIRM ALREADY HAS PAID OUT A TOTAL OF 270 MILLION IN PARTNERSHIP CLAIMS PRUDENTIAL'S 1993 RESERVES ARE THE HIGHEST EVER SET ASIDE IN A YEAR BY A WALL STREET BROKERAGE FIRM FOR LEGAL CLAIMS INVOLVING SMALL INVESTORS ANALYSTS SAY THE BULGING RESERVES GIVE THE COMPANY A CUSHION TO DOLE OUT PAYMENTS FROM A 330 MILLION REPARATIONS FUND FOR INVESTORS SET UP AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH THE 50 STATES HAS ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING 8 BILLION OF PARTNERSHIPS IN THE 1980S THE 1993 RESERVES ARE ADEQUATE TO FUND FULLY THE 330 MILLION REPARATIONS FUND PRUDENTIAL SAID BUT THE REPARATIONS FUND IS OPENENDED DEPENDING ON CLAIMS BROUGHT BY INVESTORS AND SOME ANALYSTS EXPECT THE FINAL TALLY TO BE FAR HIGHER BEFORE TAXES AND RESERVES PRUDENTIAL HAD 1993 PROFIT OF A RECORD 563 MILLION 48 HIGHER THAN IN 1992 IN THE FOURTH QUARTER PRETAX PROFIT WAS 154 MILLION MORE THAN DOUBLE THE RESULTS OF A YEAR EARLIER PRUDENTIAL'S RETURN ON EQUITY WAS 17 IN 1993 ITS EQUITY CAPITAL IS 850 MILLION REVENUE ROSE 13 IN 1993 TO 34 BILLION ASSETS UNDER MANAGEMENT SURGED TO A RECORD 151 BILLION UP 11 EXCESS REGULATORY CAPITAL STOOD AT 606 MILLION AT YEAR END AND DESPITE A DRUMBEAT OF NEGATIVE PUBLICITY PRUDENTIAL SAID IT OPENED MORE THAN 20000 NEW BROKERAGE ACCOUNTS EACH MONTH IN 1993 AND HIRED MORE THAN 230 BROKERS SALOMON'S FOURTHQUARTER NET WAS 476 MILLION OR 433 A SHARE UP FROM 143 MILLION OR 110 A SHARE A YEAR EARLIER PERSHARE EARNINGS WERE MORE THAN DOUBLE ANALYSTS' EXPECTATIONS ITS SHARES CLOSED YESTERDAY AT 4825 UP 225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SALOMON'S 1993 EARNINGS HOWEVER WERE DRAGGED DOWN BY TRADING BETS THAT BACKFIRED IN THE FIRM'S THIRD QUARTER THE 50 JUMP IN 1993 NET WAS MORE IN LINE WITH THE STRONG ANNUAL RESULTS REPORTED BY MANY SECURITIES BROKERS FOR THE FOURTH QUARTER SALOMON POSTED 508 MILLION IN PRETAX PROFIT FROM ITS PROPRIETARYTRADING OPERATION BUT THAT OPERATION HAD A 173 MILLION LOSS IN THE THIRD QUARTER OFFSETTING THE STRONG PERFORMANCES BY ITS BROKERAGE AND INVESTMENT BANKING LINES IN THE YEAREARLIER QUARTER PROPRIETARY TRADING ACCOUNTED FOR 482 MILLION OF PRETAX PROFIT REVENUE FROM INVESTMENT BANKING IN THE QUARTER AMID A RAGING WALL STREET UNDERWRITING BOOM MORE THAN DOUBLED TO 250 MILLION FROM 104 MILLION IN THE YEAREARLIER QUARTER COMMISSIONS ROSE TO 79 MILLION FROM THE PRIOR YEAR'S 51 MILLION IN THE FOURTH QUARTER SALOMON'S TOTAL FOURTHQUARTER REVENUE ROSE TO 276 BILLION FROM 214 BILLION ITS REVENUE ALSO ROSE SHARPLY QUARTERTOQUARTER THIRDQUARTER REVENUE WAS 186 BILLION TOTAL REVENUE FOR 1993 WAS 88 BILLION AN 8 GAIN FROM THE PRIOR YEAR'S 818 BILLION 9401280176 940128 VIETNAM POSTS SHARP INCREASE IN TOURIST VISITS VISA RESTRICTIONS ARE EASED AS AIRLINE ROUTES RISE AND HOTELS MULTIPLY BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL VIETNAM'S ALLURE AS ASIA'S LATEST TOURISM AND BUSINESS FRONTIER IS DRAWING EVERLARGER NUMBERS OF VISITORS TO THE COUNTRY ACCORDING TO PRELIMINARY FIGURES RELEASED BY THE GENERAL DEPARTMENT OF TOURISM THE NUMBER OF FOREIGN VISITORS LAST YEAR ROCKETED 50 FROM A YEAR EARLIER TO 669860 BETWEEN 70 AND 80 OF THE TOTAL WERE TOURISTS WHILE THE TOTAL IS DWARFED BY THE 57 MILLION VISITORS TO THAILAND AND EVEN THE 14 MILLION VISITORS TO THE PHILIPPINES LAST YEAR THE NUMBER OF FOREIGN VISITORS TO VIETNAM COULD SURGE AS MUCH AS 20 ANNUALLY FOR THE NEXT FOUR YEARS ACCORDING TO PKF CONSULTING LTD A HONG KONGBASED TOURISM CONSULTANT BY 1995 ARRIVALS ARE EXPECTED TO BREAK THE ONEMILLION MARK LAST YEAR TAIWAN WAS THE BIGGEST SOURCE OF VISITORS ACCOUNTING FOR 40 THE OTHER MAIN CONTRIBUTORS WERE JAPAN THAILAND HONG KONG CHINA FRANCE AND THE US VIETNAM WHICH BEGAN LIBERALIZING ITS ECONOMY IN 1986 HAS EASED VISA RESTRICTIONS SIGNIFICANTLY IN HONG KONG FOR EXAMPLE TOURIST VISAS CAN BE OBTAINED IN FOUR WORKING DAYS ALREADY 20 AIRLINES FROM 17 COUNTRIES MAINLY IN ASIA AND EUROPE FLY TO VIETNAM BY THE END OF THIS YEAR AT LEAST FIVE MORE FOREIGN CARRIERS ARE EXPECTED TO BE SERVING THE COUNTRY ACCORDING TO THE VIETNAM CIVIL AVIATION ADMINISTRATION THERE'S A LOT OF POTENTIAL ESPECIALLY FOR TOURS CENTERING ON CULTURE AND HERITAGE SAYS RENTON DE ALWIS VICE PRESIDENT OF THE PACIFIC ASIA TRAVEL ASSOCIATION THE ASSOCIATION WHICH TRACKS TRAVEL TRENDS IN 37 COUNTRIES AND PLAYS AN ADVISORY ROLE FOR THEIR TOURISM DEVELOPMENT ESTABLISHED A VIETNAM CHAPTER THIS MONTH BUT MR DE ALWIS WARNS THAT GIVEN THE COUNTRY'S HUNGER TO TAP DEEPPOCKETED TOURISTS OFFICIALS AND TOUR OPERATORS MUST DEVELOP TOURISM IN A CONSCIOUS MANNER TO ENSURE THAT VIETNAM'S ENVIRONMENT AND HISTORICAL HERITAGE ARE PRESERVED OTHERWISE HE SAYS THE COUNTRY WILL END UP REPEATING THE MISTAKES OF OTHER DESTINATIONS WHICH QUICKLY ARE RUINING THEIR TOURISM VALUE HOTELS AND OTHER TOURISMRELATED PROJECTS ACCOUNT FOR ABOUT 1 BILLION OR 20 OF TOTAL FOREIGN INVESTMENT TO DATE IN VIETNAM ACCORDING TO THE OFFICIAL VIETNAM NEWS AGENCY OF THE 70 TOURISMRELATED PROJECTS UNDER WAY IN THE COUNTRY 29 INVOLVE HONG KONG INVESTORS THE AGENCY SAYS THE FRENCH TOO ARE WASTING NO TIME FRANCE'S FEAL INTERNATIONAL SA AND LOCAL PARTNER SAIGON TOURIST THIS MONTH BROKE GROUND ON A DELUXE 76 MILLION 350ROOM HOTEL IN HO CHI MINH CITY THE HOTEL IS TO BE MANAGED BY MERIDIEN HOTELS ASIAPACIFIC A UNIT OF FRANCE'S MERIDIEN SA IT WILL BE THE CHAIN'S FIRST IN VIETNAM WHEN IT OPENS IN 1996 OR 1997 OTHER MERIDIEN HOTELS ARE PLANNED FOR HANOI AND THE COASTAL CITY OF DANANG DANAI WANSOM VICE PRESIDENT FOR MARKETING AND SALES AT HONG KONGBASED CENTURY INTERNATIONAL HOTELS SAYS HIS COMPANY'S RESEARCH FOUND THAT 55 TOUR OPERATORS IN FRANCE ARE ACTIVELY PROMOTING THE HISTORIC CITY OF HUE WHERE CENTURY ALREADY OPERATES AN INN THAT HELPED TOURIST ARRIVALS TO HUE DOUBLE LAST YEAR FROM A YEAR EARLIER MR WANSOM SAYS CENTURY ALSO OPERATES A HOTEL IN HO CHI MINH CITY IN ADDITION STATEOWNED AIR FRANCE HAS HAS ADDED A WEEKLY FLIGHT BETWEEN PARIS AND HANOI BRINGING TO FIVE ITS TOTAL NUMBER OF WEEKLY FLIGHTS TO THE FORMER FRENCH COLONY THREE A WEEK TO HO CHI MINH CITY AND TWO TO HANOI 9401280175 940128 INTERNATIONAL METALLGESELLSCHAFT REPORTS PROGRESS ON OIL POSITIONS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT OFFERING A MINIMALLY REASSURING PROGRESS REPORT GERMAN CONGLOMERATE METALLGESELLSCHAFT AG SAID LOSSES FROM ITS OILTRADING POSITIONS SHOULDN'T EXCEED THE 15 BILLION MARKS 8598 MILLION PREVIOUSLY ESTIMATED METALLGESELLSCHAFT WHICH WAS PULLED FROM THE BRINK OF BANKRUPTCY EARLIER THIS MONTH BY A 34 BILLIONMARK RESCUE PLAN INDICATED YESTERDAY THAT IT WAS MAKING HEADWAY IN REDUCING ITS EXPOSURE TO OIL MARKETS ONE OF THE MAIN FACTORS IN THE COMPANY'S CRISIS IN A TERSE SEVENLINE STATEMENT METALLGESELLSCHAFT SAID THAT THE UNWINDING OF ACCUMULATED OIL POSITIONS WAS PROCEEDING MORE SMOOTHLY THAN ORIGINALLY EXPECTED AND THAT LOSSES HAD NOW STABILIZED AT THE LEVEL INITIALLY ASSUMED THAT STATEMENT WAS BASED ON A REPORT BY KARL VON DER HEYDEN PRESIDENT OF THE USBASED SUBSIDIARY METALLGESELLSCHAFT CORP WHO CAME TO FRANKFURT TO UPDATE THE COMPANY'S SUPERVISORY BOARD THE TROUBLESOME OIL CONTRACTS HAD BEEN TAKEN OUT THROUGH THE US UNIT OF THE COMPANY METALLGESELLSCHAFT SPOKESMAN HANS SCHREIBER DECLINED TO SAY WHETHER MR HEYDEN'S STATEMENT INDICATED THAT LOSSES MIGHT BE LESS THAN ORIGINALLY FORESEEN THE STATEMENTS WEREN'T ENOUGH TO RESTORE INVESTOR CONFIDENCE IN THE STOCK SHARES IN METALLGESELLSCHAFT CONTINUED THEIR DOWNWARD SPIRAL SHEDDING SEVEN MARKS 401 YESTERDAY TO END FRANKFURT TRADING AT 232 MARKS MOREOVER WITH MANAGEMENT SEEKING SHAREHOLDER APPROVAL FEB 22 FOR A 14 BILLIONMARK CAPITAL INCREASE THROUGH ISSUING NEW SHARES AT 250 MARKS A SHARE THERE IS AN EFFECTIVE TECHNICAL CAP ON THE SHARES AT THAT LEVEL THE NEW MANAGEMENT BOARD UNDER KAJO NEUKIRCHEN THE TURNAROUND EXPERT WHO WAS INSTALLED AFTER FORMER CHAIRMAN HEINZ SCHIMMELBUSCH WAS OUSTED HAS A GOOD DEAL OF CREDIBILITY WITH THE GERMAN BUSINESS COMMUNITY THE SUPERVISORY BOARD'S FAILURE TO SPOT AND PREVENT THE COMPANY'S PROBLEMS EARLIER HOWEVER CONTINUES TO SPUR DEBATE IN GERMAN INDUSTRY CIRCLES ABOUT WHETHER CORPORATE SUPERVISORY BODIES NORMALLY MADE UP OF PROMINENT INDUSTRIALISTS AND BANKERS ACTUALLY ARE FULFILLING THEIR RESPONSIBILITY OF PROTECTING SHAREHOLDER INTERESTS PEOPLE CLOSE TO THE SUPERVISORY BOARD CONFIRMED REPORTS THAT THE PARENT COMPANY'S AUDITORS KPMG DEUTSCHE TREUHANDGESELLSCHAFT HAD BEEN ASKED LAST FALL TO CARRY OUT A SPECIAL AUDIT OF THE US OPERATIONS THIS REQUEST HOWEVER WAS IN RESPONSE TO A ROUTINE RECOMMENDATION BY KPMG AND CONTRARY TO SOME PUBLISHED REPORTS WASN'T AN INDICATION THAT THE SUPERVISORY BOARD KNEW OF POSSIBLE PROBLEMS BUT FAILED TO ACT DECISIVELY ENOUGH TO HEAD OFF THE CRISIS THE INDIVIDUALS EMPHASIZED THE KPMG REPORT WASN'T COMPLETED BEFORE THE NOV 19 SUPERVISORY BOARD MEETING WHEN MR SCHIMMELBUSCH'S CONTRACT WAS RENEWED FOR FIVE YEARS THESE PEOPLE SAID 9401280174 940128 INTERNATIONAL JAPANESE STORE SALES SLIP TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN DECEMBER WERE 2645 TRILLION YEN 2406 BILLION DOWN 45 FROM THE YEAREARLIER MONTH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID DECEMBER'S DECLINE EXTENDED THE STREAK OF YEARONYEAR DROPS TO 19 MONTHS AND FOLLOWS DECLINES OF 69 IN NOVEMBER 35 IN OCTOBER AND 37 IN SEPTEMBER BUT THE PACE OF THE DECLINE WAS SLOWER THAN THE 75 FALL IN MARCH THE SHARPEST SLIDE SINCE THE MINISTRY ADOPTED THE CURRENT STATISTICAL METHOD IN JANUARY 1988 9401280173 940128 BUSINESS BRIEF COCACOLA 4THQUARTER PROFIT ROSE 19 AIDED BY GROWTH IN OVERSEAS MARKETS THE BEVERAGE COMPANY SAID NET INCOME SURGED TO 466 MILLION OR 36 CENTS A SHARE ON REVENUE OF 337 BILLION THAT COMPARES WITH EARNINGS OF 392 MILLION OR 30 CENTS A SHARE A YEAR EARLIER ON REVENUE OF 324 BILLION THE RESULTS WHICH SLIGHTLY EXCEEDED ANALYSTS' CONSENSUS ESTIMATES OF 35 CENTS A SHARE DEMONSTRATED CONTINUED GROWTH IN DEVELOPING MARKETS SUCH AS EASTERN EUROPE AND CHINA WHERE VOLUME AS MEASURED BY CASE SALES GREW BY 21 AND 38 FOR THE YEAR RESPECTIVELY ALSO DURING THE FOURTH QUARTER COCACOLA WAS ABLE TO IMPROVE ON WEAK THIRDQUARTER PERFORMANCES IN SUCH KEY MARKETS AS BRITAIN GERMANY AND JAPAN INTERNATIONAL BUSINESS ACCOUNTS FOR ABOUT 80 OF THE COMPANY'S EARNINGS AFTER AN 8 YEARONYEAR DECLINE IN VOLUME DURING THE THIRD QUARTER IN JAPAN FOR INSTANCE COKE'S FOURTHQUARTER VOLUME ROSE 3 FROM A YEAR EARLIER FOURTHQUARTER VOLUME IN BRITAIN HIT 8 AFTER A 1 GAIN IN THE THIRD QUARTER IN GERMANY FOURTHQUARTER VOLUME WAS EVEN WITH THE SAME PERIOD OF 1992 COMPARED WITH AN 11 DROP IN THE THIRD QUARTER THE COMPANY ATTRIBUTED THE TURNAROUND PARTLY TO IMPROVING ECONOMIES IN THOSE COUNTRIES THE KEY AT COKE IS THE INTERNATIONAL SIDE OF THE BUSINESS SAID GEORGE THOMPSON SENIOR ANALYST WITH PRUDENTIAL SECURITIES WE'RE SEEING INCREASING EVIDENCE THAT THE PROBLEM THEY'VE HAD IS REALLY CYCLICALLY ORIENTED OVERALL INTERNATIONAL VOLUME GREW 7 IN THE QUARTER AND 6 FOR THE YEAR THAT COMPARES WITH 5 GROWTH IN THE 1992 FOURTHQUARTER AND A 4 GAIN FOR ALL OF 1992 DOMESTIC VOLUME ROSE 5 IN THE QUARTER POWERED MAINLY BY AN 11 JUMP IN FOUNTAIN SALES REFLECTING COCACOLA'S CONTINUED STRONG PRESENCE IN RESTAURANTS BOTTLE AND CAN CASE SALES GREW BY A MORE MODEST 2 IN THE US DURING THE FOURTH QUARTER IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE COCACOLA SHARES WERE QUOTED AT 4175 UP 75 CENTS FOR ALL OF 1993 COCACOLA REPORTED NET INCOME OF 218 BILLION OR 167 A SHARE COMPARED WITH 1992 EARNINGS OF 166 BILLION OR 126 A SHARE REVENUE GREW TO 1396 BILLION FROM 1307 BILLION 9401280172 940128 CROWN CORK TO BUY CAN MAKER PHILADELPHIA CROWN CORK & SEAL CO AGREED IN PRINCIPLE TO ACQUIRE THE TRI VALLEY GROWERS CONTAINER DIVISION OF TRI VALLEY GROWERS TERMS WEREN'T DISCLOSED THE COMPANY SAID IT EXPECTS TO CLOSE THE TRANSACTION THIS QUARTER SUBJECT TO COMPLETION OF A DEFINITIVE AGREEMENT AND RECEIPT OF REGULATORY APPROVALS CROWN SAID THE CONTAINER DIVISION OPERATES CAN MANUFACTURING PLANTS IN MODESTO FREMONT AND MERCED CALIF 9401280171 940128 TECHNOLOGY & HEALTH LIBERAL DEMOCRATS' HEALTH PLAN TAXES FIRMS INDIVIDUALS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF LIBERAL DEMOCRATS WHO FAVOR A GOVERNMENTRUN NATIONAL HEALTHINSURANCE SYSTEM PROPOSED FINANCING THEIR PLAN WITH A PAYROLL TAX ON EMPLOYERS AND A NEW 21 LEVY ON INDIVIDUALS' TAXABLE INCOME THE GROUP LED BY REP JAMES MCDERMOTT OF WASHINGTON AND SEN PAUL WELLSTONE OF MINNESOTA SUBMITTED A BILL LAST YEAR THAT WOULD SET UP A NATIONAL HEALTHINSURANCE SYSTEM SIMILAR TO CANADA'S YESTERDAY THEY UNVEILED A NEW PROPOSAL TO PAY FOR IT A PAYROLL TAX OF 84 FOR LARGE EMPLOYERS THOSE WITH MORE THAN 75 FULLTIME EMPLOYEES EARNING WAGES AVERAGING MORE THAN 24000 A YEAR AND A TAX OF 4 FOR SMALL EMPLOYERS IN ADDITION THEY PROPOSED THE 21 ASSESSMENT ON INDIVIDUALS' TAXABLE INCOME AN INCREASE IN THE TAX ON CIGARETTES TO 2 A PACK FROM 24 CENTS AND A JUMP IN THE EXCISE TAX ON AMMUNITION AND HANDGUNS TO 50 FROM 11 AND 10 RESPECTIVELY THE NEW TAXES WOULD REPLACE THE PRIVATE INSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS NOW PAY THE MONEY WOULD BE COLLECTED BY THE FEDERAL GOVERNMENT AND ALLOCATED TO STATES TO PAY FOR A COMPREHENSIVE ARRAY OF HEALTH BENEFITS FOR ALL CITIZENS INCLUDING PREVENTIVE SERVICES HOSPITALIZATION MENTALHEALTH AND SUBSTANCEABUSE TREATMENT AND NURSINGHOME CARE PRIVATE HEALTHINSURANCE POLICIES WOULD BE VIRTUALLY ELIMINATED WHILE THE SOCALLED SINGLEPAYER SYSTEM IS GIVEN LITTLE CHANCE OF WINNING CONGRESSIONAL APPROVAL ITS ROUGHLY 100 ADVOCATES REPRESENT AN IMPORTANT VOTING BLOC THEY EXPECT TO PLAY A BIG ROLE IN NEGOTIATIONS ON HEALTHOVERHAUL LEGISLATION A NUMBER OF THE GROUP'S PREVIOUS FINANCING PROPOSALS INCLUDING HIGHER INCOMETAX RATES ON CORPORATIONS AND WEALTHY INDIVIDUALS AND CERTAIN SAVINGS IN THE MEDICARE PROGRAM WERE ADOPTED BY CONGRESS LAST SUMMER AS PART OF ITS DEFICITREDUCTION PACKAGE THE CLINTON HEALTH BILL WOULD CONTINUE TO INSURE PEOPLE MOSTLY THROUGH PRIVATE INSURANCE POLICIES THE PRESIDENT WOULD PAY FOR SUCH COVERAGE BY REQUIRING ALL EMPLOYERS TO HELP PAY THEIR WORKERS' INSURANCE PREMIUMS HE WOULD LIMIT HOW MUCH EMPLOYERS AND INDIVIDUALS WOULD HAVE TO PAY THOUGH 9401280170 940128 WHO'S NEWS ALITALIA NAMES PAIR FROM COMPUTER FIELD TO HEAD MANAGEMENT ITALIAN STATE AIRLINE ALITALIA SWEPT OUT ITS TOP MANAGEMENT AND IS HOPING THAT TWO US COMPUTERINDUSTRY EXECUTIVES WILL BE ABLE TO TURN AROUND THE CARRIER'S FORTUNES RENATO RIVERSO IBM EUROPE'S TOP EXECUTIVE WAS NAMED ALITALIA'S NEW CHAIRMAN ROBERTO SCHISANO HEAD OF TEXAS INSTRUMENTS EUROPE WAS NAMED TO THE NO 2 SPOT OF MANAGING DIRECTOR ALITALIA SAID THE PREVIOUSLY CEREMONIAL POST OF CHAIRMAN WILL BE GRANTED SOME EXECUTIVE POWERS UNTIL NOW NEARLY ALL OF THE MANAGEMENT POWER RESTED WITH THE MANAGING DIRECTOR GIOVANNI BISIGNANI HE AND SEVERAL OTHER TOP MANAGERS WILL LEAVE THE AIRLINE MR BISIGNANI 47 YEARS OLD HAS HEADED ALITALIA SINCE 1989 HE WILL MOVE TO A SMALL STATERUN SHIPPING COMPANY TIRRENIA ALITALIA HASN'T TURNED A PROFIT SINCE 1988 WITH LOSSES TOTALING 366 BILLION LIRE 216 MILLION FROM 1989 TO 1992 ANALYSTS ESTIMATE A LOSS OF MORE THAN 300 BILLION LIRE FOR 1993 ALONE MR RIVERSO'S DEPARTURE FROM IBM EUROPE A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP HAD BEEN ANNOUNCED HE IS LEAVING AT THE NORMAL IBM RETIREMENT AGE OF 60 NEXT MONTH DURING HIS THREEYEAR TENURE THE BIG EUROPEAN OPERATIONS BECAME A PROBLEM CHILD FOR IBM ALTHOUGH COMPUTERINDUSTRY ANALYSTS GENERALLY BLAMED THE WOES ON A SAGGING EUROPEAN COMPUTER MARKET AND WORLDWIDE STRATEGY PROBLEMS AT IBM UNDER MR RIVERSO'S WATCH IBM'S EUROPEAN WORK FORCE FELL BY ROUGHLY 25 TO 77000 MR SCHISANO IS A FORMER CHAIRMAN OF TEXAS INSTRUMENTS EUROPE THE EUROPEAN SUBSIDIARY OF TEXAS INSTRUMENTS INC 9401280169 940128 WHO'S NEWS METAPOINT PARTNERS METAPOINT PARTNERS PEABODY MASS HAROLD POLING FORMER FORD MOTOR CO CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOINED THIS INVESTMENT FIRM AS A PARTNER MR POLING 68 YEARS OLD WHO LEFT THE AUTO MAKER IN NOVEMBER ALSO IS AN INVESTOR IN METAPOINT WHICH SPECIALIZES IN BUYOUTS OF SMALL CLOSELY HELD BUSINESSES IT HAS 32 MILLION IN CAPITAL RAISED FROM A GROUP OF 30 INDIVIDUALS 9401280168 940128 DAN QUAYLE OFFERS TO BECOME CHIP OFF THE OLD SPUD IN AD FORMER VEEP WILL PROMOTE A NEW FRITOLAY SNACK IN SUPER BOWL TV SPOT BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DAN QUAYLE JUST CAN'T SEEM TO GET AWAY FROM POTATOES THE FORMER VICE PRESIDENT WHO ONCE INADVERTENTLY ENCOURAGED A YOUNGSTER TO MISSPELL THE WORD POTATO WILL APPEAR IN A TELEVISION COMMERCIAL FOR A NEW POTATO CHIP FROM PEPSICO INC'S FRITOLAY DIVISION MR QUAYLE MAKES A CAMEO APPEARANCE IN THE SPOT WHICH WILL BE SHOWN ONLY ONCE DURING THE SUPER BOWL THIS SUNDAY IT ISN'T MR QUAYLE'S FIRST APPEARANCE IN ADVERTISING BUT IT IS PERHAPS THE FIRST OF HIS CHOICE WHILE HE WAS A HEARTBEAT AWAY FROM THE PRESIDENCY MR QUAYLE WAS INCLUDED IN A SPATE OF ADVERTISING MUCH OF IT SUBJECTING HIM TO RIDICULE OVER THE POTATO MISSPELLING INCIDENT FOR EXAMPLE A SHOE MANUFACTURER PLACED PRINT ADS FEATURING MR QUAYLE WEARING A GOOFY EXPRESSION THE HEADLINE DON'T FORGET TO VOT MR QUAYLE WAS CONTACTED BY FRITOLAY'S AD AGENCY OMNICOM GROUP'S BBDO THERE WAS NO HESITATION SAYS MAX W HITTLE JR AN ATTORNEY WITH KRIEG DEVAULT ALEXANDER & CAPEHART AN INDIANAPOLIS LAW FIRM WHERE MR QUAYLE'S WIFE MARILYN IS A PARTNER MR QUAYLE HIMSELF IS EMBARKING ON A 33CITY TOUR TO PROMOTE A NEW NONFICTION BOOK HE WANTED TO DO THE COMMERCIAL FOR FUN SAYS MR HITTLE IT IS A FUN WAY TO PRESENT HIMSELF TO THE PUBLIC DOES THIS HARM HIS CHANCES IN THE EVENT HE WANTS TO BE TAKEN SERIOUSLY FOR A RUN FOR THE PRESIDENCY IN 1996 MR QUAYLE COULDN'T BE REACHED FOR COMMENT BUT MR HITTLE SAYS THIS COMMERCIAL ISN'T TO BE TAKEN AS A POLITICAL STATEMENT IT WON'T HURT AT ALL MR QUAYLE MAY BE THE FIRST FORMER VICE PRESIDENT TO APPEAR IN ADS HAWKING A PRODUCT OF COURSE OTHER POLITICIANS HAVE BEEN FEATURED IN COMMERCIALS AND FORMER CANDIDATES FOR VICE PRESIDENT HAVE MADE COMMERCIALS WILLIAM E MILLER WHO RAN WITH BARRY GOLDWATER IN 1964 MADE A SPOT FOR AMERICAN EXPRESS CARDS AND GERALDINE FERRARO WHO WAS THE RUNNING MATE OF WALTER MONDALE IN 1984 APPEARED IN A DIET PEPSI COMMERCIAL MR QUAYLE WHO IS DONATING HIS UNDISCLOSED EARNINGS FROM THE SPOT TO CHARITY IS USED FOR THE SHOCK VALUE OF THE UNEXPECTED SAYS ALAN POTTASCH A SENIOR VICE PRESIDENT AT PEPSICOLA INTERNATIONAL WHO WORKED ON THE COMMERCIAL FOR WAVY LAY'S POTATO CHIPS THE COMMERCIAL ALSO FEATURES CHILD STAR ELIJAH WOOD WHO IS SEATED IN ONE OF THE WORST SEATS IN THE GEORGIA DOME IN ATLANTA THE SITE OF THE SUPER BOWL MUNCHING ON WAVY LAY'S HE PROPOSES A BET TO A GENTLEMAN SEATED IN FRONT OF HIM IF THE MAN CAN'T EAT JUST ONE WAVY LAY'S HE MUST TRADE SEATS WITH THE YOUTH AS ELIJAH KEEPS WINNING BETS HE KEEPS IMPROVING HIS SEAT POSITION FINALLY HE GETS TO MR QUAYLE WHO IS SEATED IN THE FIRST ROW ON THE 50YARD LINE AS FAST AS YOU CAN SAY FAMILY VALUES MR QUAYLE LOSES THE WAGER ACCORDING TO A PEPSICO OFFICIAL ONE SCENARIO HAD ELIJAH WORK MR QUAYLE'S FLUB OF POTATO INTO THE SCRIPT BUT NO ONE HAD THE NERVE TO ASK MR QUAYLE IF HE WOULD GO ALONG WITH IT SO WE DROPPED IT SAYS THE OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED SOME MARKETING EXPERTS ARE UNIMPRESSED WITH MR QUAYLE'S FORAY FROM PENNSYLVANIA AVENUE TO MADISON AVENUE BOTH MR QUAYLE AND FRITOLAY HAVE REACHED NEW LOWS SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES INC A MARKETING AND CONSULTING FIRM IN GUILFORD CONN SHOWING HIM IS NOT THE WAY TO ENCOURAGE A CONSUMER TO BUY THE PRODUCT SHOULD I BUY THIS POTATO CHIP SIMPLY BECAUSE DAN QUAYLE CAN'T EAT JUST ONE ALL THIS WILL DO IS PROVIDE GRIST FOR THE JAY LENO AND DAVID LETTERMAN JOKE MACHINES 9401280167 940128 MUTUALFUND MANAGERS CAN OFTEN GET PART OF THE ACTION IN PRIVATE PLACEMENTS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRIVATE STOCK DEALS FEW INVESTORS UNDERSTAND THEM FEWER STILL ARE INVITED TO BUY THEM BUT MUTUALFUND MANAGERS ARE AMONG THOSE WHO CAN GET A LUCRATIVE PIECE OF THE ACTION A LOOK AT ONE INVESTMENT BY FUND MANAGER ALAN G CARR SHEDS LIGHT ON HOW SUCH PRIVATE DEALS WORK AND THE NETWORKING BEHIND THEM MR CARR IS THE CHIEF STOCKPICKER FOR TWO PUBLICLY TRADED HEALTHCARE STOCK FUNDS MANAGED BY A BOSTON MONEYMANAGEMENT SUBSIDIARY OF HAMBRECHT & QUIST INC BOTH HEALTHCARE FUNDS HOLD STAKES IN THE BIOTECHNOLOGY COMPANY GILEAD SCIENCES INC WHICH MR CARR ALSO HAS HELD IN HIS PERSONAL ACCOUNT SINCE 1988 REGULATORY FILINGS SHOW LIKE MANY PRIVATEFINANCING DEALS GILEAD'S 1988 PRIVATE STOCK SALE TOOK PLACE YEARS BEFORE THE COMPANY WENT PUBLIC EARLY INVESTORS SUCH AS MR CARR ARE TAKING A BIG RISK BECAUSE THERE'S NO GUARANTEE THE STOCK WILL EVER REACH THE PUBLIC MARKET MUTUALFUND MANAGERS WHO BUY SUCH DEALS AREN'T DOING ANYTHING WRONG AS LONG AS THEY COMPLY WITH THEIR COMPANIES' DISCLOSURE POLICIES INDUSTRY LAWYERS SAY BUT THE POTENTIAL FOR A CONFLICT OF INTEREST ARISES IF THE VALUE OF THE COMPANY'S STOCK INCREASES AS A RESULT OF PURCHASES BY THE MUTUAL FUND JUST BECAUSE THERE IS A POTENTIAL CONFLICTOFINTEREST DOESN'T MEAN THERE IS ONE SAYS MR CARR WHO DECLARES IN AN INTERVIEW THAT MORE THAN HALF OF HIS PERSONAL ASSETS ARE INVESTED IN THE TWO FUNDS IT IS PUBLIC KNOWLEDGE THAT I OWN THESE SHARES AND EVERYTHING HAS BEEN FULLY DISCLOSED MR CARR SAYS HE HAS COMPLIED WITH ALL INHOUSE RULES CHECKING WITH THE FUNDS' COUNSEL ABOUT HIS PERSONAL STAKE IN GILEAD A FOSTER CITY CALIF COMPANY SEEKING TO CREATE A RANGE OF DRUGS THAT WILL TARGET THE CULPABLE GENES AND PROTEINS INVOLVED IN VIRAL INFECTIONS CARDIOVASCULAR DISEASE CANCER AND INFLAMMATION THE MERE FACT THAT THESE DEALS ARE OFFERED TO MUTUALFUND MANAGERS IS IN AND OF ITSELF NOT A SIN SAYS ROY ADAMS A LAWYER AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO ONLY IF MANAGERS ACCEPT A PERSONAL DEAL WITH THE UNDERSTANDING THAT THEY WILL BUY THE COMPANY FOR THE FUND LATER DOES A LEGAL PROBLEM ARISE THERE HAS BEEN NO SUCH SUGGESTION IN MR CARR'S CASE THE GILEAD INVESTMENT BEGAN WITH A FRIENDSHIP BETWEEN MR CARR AND THE UPSTART BIOTECH COMPANY'S CHIEF FINANCIAL OFFICER WHO HAD PREVIOUSLY WORKED AS AN INVESTMENT BANKER AT HAMBRECHT & QUIST MR CARR BOUGHT SHARES OF GILEAD FOR HIMSELF AND ABOUT THREE YEARS LATER FOR ONE OF HIS FUNDS IN SEPARATE PRIVATE PLACEMENTS THAT'S WALL STREET JARGON FOR A STOCK SALE MADE TO A SELECT GROUP OF SOPHISTICATED INVESTORS USUALLY BY A COMPANY TOO YOUNG SMALL OR RISKY TO MAKE A PUBLIC STOCK OFFERING MR CARR GOT IN CHEAPER AND EARLIER IN 1988 HE PAID A SPLITADJUSTED 375 A SHARE FOR PREFERRED STOCK THAT WAS OFFERED ALMOST EXCLUSIVELY TO SOCALLED VENTURECAPITAL INVESTORS THEN IN 1991 HIS H&Q HEALTHCARE INVESTORS VENTURED IN PAYING A SPLITADJUSTED 1050 A SHARE FOR SIMILAR PREFERRED H&Q HEALTHCARE INVESTORS IS AN INVESTMENT VEHICLE KNOWN AS A CLOSEDEND FUND THAT TRADES ON THE NEW YORK STOCK EXCHANGE ALSO A HOLDER OF GILEAD IS H&Q LIFE SCIENCES INVESTORS A YOUNGER CLOSEDEND FUND TRADING ON THE BIG BOARD TOGETHER AS OF SEPT 30 THE TWO FUNDS HELD ABOUT 127000 SHARES NOW VALUED IN THE STOCK MARKET AT 16 MILLION ACCORDING TO MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER GILEAD MADE ITS INITIAL PUBLIC OFFERING IN JANUARY 1992 AT 15 A SHARE IN THE IPO ALL PREFERRED HOLDINGS WERE CONVERTED INTO COMMON STOCK THE FUNDS COULDN'T BUY THE IPO AT THAT INITIAL PRICE BECAUSE HAMBRECHT WAS COMANAGER OF THE OFFERING AND SUCH A PURCHASE WOULD BE BARRED BUT THEY DID BUY SHARES AFTER THE OFFERING MR CARR SAYS SOON AFTER THE IPO THE STOCK TRADED AS HIGH AS 2425 BUT NOW IT IS WAY BELOW THAT LEVEL GILEAD CLOSED AT 12875 UP 75 CENTS YESTERDAY IN THE NASDAQ STOCK MARKET BOTH MR CARR AND THE FUNDS STILL HOLD GILEAD SHARES IN GENERAL I DON'T INVEST SIDEBYSIDE WITH THE FUND BUT A GOOD FRIEND OF MINE MICHAEL BIGHAM WHO IS GILEAD'S CFO HAD RECENTLY JOINED THE COMPANY AND ASKED IF I WANTED TO MAKE AN INVESTMENT MR CARR SAYS I TRIED TO TALK HIM INTO LETTING THE FUND INVEST AT THAT TIME BUT HE WOULD NOT TAKE THE MONEY MR BIGHAM WAS TRAVELING AND COULDN'T BE REACHED H DUBOSE MONTGOMERY A DIRECTOR OF GILEAD WHO SERVED AS CHAIRMAN WHEN THE COMPANY WENT PUBLIC SAYS THE 1988 ROUND OF FINANCING GOT DONE BASICALLY THROUGH WORD OF MOUTH AMONG VENTURE CAPITALISTS MR MONTGOMERY IS A FOUNDER OF MENLO VENTURES A MENLO PARK CALIF VENTURECAPITAL FIRM THAT PROVIDED SEED MONEY FOR GILEAD BACK IN 1988 THE BIOTECH COMPANY WAS STILL JUST GETTING STARTED AND THE FINANCING WAS COMING FROM OTHER VENTURE CAPITALISTS MR MONTGOMERY SAYS INDIVIDUALS COULD HAVE COME IN THROUGH THEIR CONTACTS KNOWING SCIENTISTS OR A FRIEND OR NEIGHBOR MR CARR'S ORIGINAL PERSONAL INVESTMENT OF 5000 HAD GOOD COMPANY JUDGING BY THE LIST IN REGULATORY FILINGS OF OTHER 1988 PRIVATE INVESTORS AND THEIR JOBS AT THE TIME INVESTMENTS INCLUDED 25000 FROM GORDON E MOORE CHAIRMAN OF INTEL CORP 10000 FROM JAMES M DENNY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SEARS ROEBUCK & CO 25000 FROM MICHAEL MCCAFFERY DIRECTOR OF INVESTMENT BANKING AT SAN FRANCISCOBASED ROBERTSON STEPHENS & CO WHICH WOULD LATER BE LEADUNDERWRITER OF GILEAD'S IPO AND 10000 FROM WILLIAM B WELTY OF BROKERAGE FIRM VOLPE WELTY & CO WHO HAD JUST LEFT HIS POSITION AS RESEARCH DIRECTOR AT HAMBRECHT & QUIST GILEAD ISN'T THE ONLY COMPANY IN WHICH BOTH MR CARR AND HIS FUNDS HAVE INVESTED BEFORE EITHER FUND WAS UP AND RUNNING MR CARR SAYS HE BOUGHT PRIVATE SHARES IN VENCOR INC IN LATE 1986 AT ABOUT 2 ADJUSTED FOR SPLITS BASED IN LOUISVILLE KY VENCOR PROVIDES LONGTERM CARE TO CHRONICALLY ILL PATIENTS IN SEPTEMBER 1989 VENCOR WENT PUBLIC AT A SPLITADJUSTED 453 MR CARR SAYS H&Q HEALTHCARE INVESTORS BOUGHT SOME SHARES AFTER THE OFFERING AND STILL HOLDS THE STOCK NOW TRADING AT 30875 HAMBRECHT & QUIST BASED IN SAN FRANCISCO WAS A COMANAGER OF VENCOR'S IPO MR CARR SAYS HE HASN'T SOLD ANY OF HIS GILEAD SHARES AND CAN'T DO SO UNTIL AFTER THE FUND GETS OUT OF THE STOCK HE HAS GIVEN SOME OF HIS VENCOR HOLDINGS AWAY TO CHARITY IN INCREMENTS OVER THE PAST THREE YEARS DOES SITTING WITH SUCH A NICE PERSONAL PAPER PROFIT ON A HOLDING MAKE HIM MORE RELUCTANT TO YANK GILEAD STOCK OUT OF THE FUNDS THAN HE MIGHT OTHERWISE BE MR CARR DOESN'T THINK SO WITHIN THE LAST YEAR I HAVE EVEN BOUGHT MORE GILEAD STOCK FOR THE FUNDS HE SAYS EARLIER THIS MONTH STAR FUND MANAGER JOHN KAWESKE WAS FIRED FROM INVESCO FUNDS GROUP OF DENVER FOR ALLEGEDLY FAILING TO REPORT SOME PERSONAL TRADES TO HIS EMPLOYER AT THAT TIME MR KAWESKE SAID HE WAS SHOCKED BY THE FIRING AND INDICATED HE BELIEVED INVESCO MAY HAVE DISMISSED HIM BECAUSE IT SUSPECTED HE WAS GETTING READY TO LEAVE ANYWAY INVESCO'S PARENT COMPANY IS INVESCO PLC OF LONDON MR KAWESKE'S LAWYER HAS PREVIOUSLY SAID THAT ANY VIOLATIONS BY HIS CLIENT IF THEY OCCURRED WERE HIGHLY TECHNICAL IN NATURE THE BRITISH PARENT COMPANY HAS HAD ITS OWN REPORTING PROBLEMS IN THE PAST IN 1992 THE BRITISH COMPANY WAS FINED 175000 BY THE US SECURITIES AND EXCHANGE COMMISSION FOR VIOLATING FEDERAL RULES REQUIRING DISCLOSURE OF BULK STOCK PURCHASES DENVERBASED INVESCO SAYS AND IN MID1993 BRITISH REGULATORS SAID THEY HAD FINED THE UNITED KINGDOM COMPANY 750000 AND ORDERED IT TO PAY 16 MILLION IN COSTS LARGELY FOR FAILURE TO HAVE ADEQUATE SYSTEMS OF CONTROL AND COMPLIANCE ARRANGEMENTS 9401280166 940128 ECONOMY DURABLEGOODS ORDERS SURGED BY 86 IN 1993 BIGGEST INCREASE IN FIVE YEARS BY DAWN BLALOCK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR DURABLE GOODS IN 1993 SHOWED THEIR STRONGEST GAIN IN FIVE YEARS PROVIDING ANOTHER SIGN THAT THE MANUFACTURING SECTOR IS RECOVERING FROM A LONG PERIOD OF STAGNATION ORDERS FOR DURABLE GOODS PRODUCTS WHICH ARE EXPECTED TO LAST THREE YEARS OR MORE ROSE 86 LAST YEAR TO 1597 TRILLION THE COMMERCE DEPARTMENT SAID IT WAS THE LARGEST INCREASE SINCE THE 96 RISE IN 1988 IN DECEMBER DURABLEGOODS ORDERS CLIMBED 22 TO 14278 BILLION THE FIFTH CONSECUTIVE MONTHLY INCREASE ANALYSTS SAID THE LATEST FIGURES SUGGEST THAT THE MANUFACTURING SECTOR HAS BECOME MUCH HEALTHIER IN RECENT MONTHS AFTER YEARS OF RESTRUCTURINGS AND LAYOFFS THEY ALSO SAID THE FIGURES SUGGEST THAT INDUSTRIAL PRODUCTION WILL CONTINUE TO IMPROVE THIS YEAR WE'VE PAID OUR DUES AND NOW IT'S TIME TO REAP THE REWARD SAID JAMES SMITH FINANCE PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA THE PICKUP IN ACTIVITY IS LIKELY TO CURB MASSIVE JOB CUTBACKS IN RECENT MONTHS AT MANY US FACTORIES BUT EMPLOYMENT GROWTH STILL ISN'T LIKELY TO PICK UP DRASTICALLY ANALYSTS SAID JOBS IN THE MANUFACTURING SECTOR WILL LIKELY STABILIZE OR RISE A LITTLE BIT IN 1994 SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP OF PITTSBURGH AND CHAIRMAN OF THE AMERICAN BANKERS ASSOCIATION'S ECONOMIC ADVISORY COMMITTEE ECONOMISTS WERE PARTICULARLY ENCOURAGED THAT DESPITE CONTINUAL CUTBACKS IN DEFENSE SPENDING OVERALL ORDERS WERE STILL STRONG IN 1993 ANALYSTS OFTEN EXCLUDE DEFENSE WHEN INTERPRETING ORDERS BECAUSE THESE BIGTICKET ITEMS OFTEN ARE MORE REFLECTIVE OF GOVERNMENT FISCAL POLICY THAN CAPITAL SPENDING THE RISE IN DURABLEGOODS ORDERS IN DECEMBER FOLLOWED A REVISED 23 GAIN IN NOVEMBER AND A 26 INCREASE IN OCTOBER THE STRONGEST SHOWING FOR DECEMBER WAS IN ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT WHICH ROSE 54 ANALYSTS ALSO NOTED SIGNIFICANT INCREASES IN ORDERS FOR NONDEFENSE CAPITAL GOODS PARTICULARLY COMPUTERS AND OFFICE EQUIPMENT TRANSPORTATION THE MOST VOLATILE OF THE SECTORS ROSE THE LEAST 12 AIRCRAFT ORDERS HOWEVER FELL DURING THE MONTH THAT MAKES THE TRANSPORTATION FIGURES LOOK BETTER BECAUSE THE OFTEN VOLATILE AIRCRAFT ORDERS FREQUENTLY MAKE THE TRANSPORTATION SECTOR APPEAR HEALTHIER THAN IT ACTUALLY IS UNFILLED ORDERS FOR DURABLE GOODS FELL FOR THE 10TH CONSECUTIVE MONTH TO THE LOWEST LEVEL SINCE MARCH 1988 A BACKLOG OF ORDERS IS OFTEN CONSIDERED A MEASURE OF WHETHER CURRENT FACILITIES AND MANPOWER CAN KEEP UP WITH DEMAND A CONSISTENTLY DECLINING NUMBER SUGGESTS NO NEED FOR LARGER PRODUCTION LINES AND INCREASED EMPLOYMENT HOWEVER SOME ECONOMISTS CONTEND THAT THE SHRINKING BACKLOG IS DUE TO STRONG SHIPMENTS WHICH ALSO INCREASED FOR THE FIFTH MONTH IN A ROW OUTPACING THE GROWTH IN ORDERS THE SIGNIFICANCE OF THE CONTINUING DECLINE IN UNFILLED ORDERS IS NOT NECESSARILY A NEGATIVE SAID TOM RUNIEWICZ AN ECONOMIST AT WEFA GROUP IN BALA CYNWYD PA MANUFACTURERS UNDERSTAND THEY NEED TO BE MUCH MORE EFFICIENT OR THEY WON'T BE IN BUSINESS IN THE NEXT FIVE YEARS IT MAY BE POSITIVE IN THE SENSE THAT TURNAROUND TIME IN FILLING ORDERS HAS BEEN SHORTENED MR RUNIEWICZ SAID AND MANUFACTURERS ARE WORKING WITH LESS OF A BACKLOG THE MANUFACTURING TREND OF INVESTMENT IN MOREEFFICIENT EQUIPMENT WILL CONTINUE KEEPING THE SIZE OF THE WORK FORCE FLAT HE SAID SEPARATELY INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE TUMBLED 56000 IN THE WEEK ENDED JAN 22 TO 309000 ANALYSTS SAID THAT COLD WEATHER THE LOS ANGELES EARTHQUAKE AND THE MARTIN LUTHER KING JR HOLIDAY PROBABLY KEPT MANY AMERICANS FROM FILING CLAIMS DURING THE WEEK THE FOURWEEK AVERAGE FOR SEASONALLY ADJUSTED CLAIMS FOR THE SAME TIME FRAME WAS 347000 UP FROM A REVISED 343000 FOR THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS IN BILLIONS 9401280165 940128 JOHNSTON INDUSTRIES TO POST 40 DECLINE IN ITS 2NDQUARTER NET NEW YORK JOHNSTON INDUSTRIES INC DESPITE STRONG OPERATING PROFIT EXPECTS TO POST A MORE THAN 40 DECLINE IN FISCAL SECONDQUARTER NET INCOME MAINLY DUE TO PORTFOLIO LOSSES IN AN INVESTMENT COMPANY IN WHICH JOHNSTON HOLDS A 44 STAKE IN AN INTERVIEW OFFICIALS OF THE TEXTILE COMPANY SAID THEY EXPECT TO POST A DECLINE IN NET FOR THE QUARTER ENDED DEC 31 TO ABOUT 10 CENTS A SHARE OR ABOUT 11 MILLION FROM 17 CENTS A SHARE OR 19 MILLION PERSHARE NUMBERS FOR A YEAR AGO REFLECT A 3FOR2 STOCK SPLIT EFFECTIVE EARLIER THIS WEEK NONETHELESS DAVID L CHANDLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WE THINK WE CAN COMFORTABLY EXCEED EARNINGS PER SHARE OF A YEAR AGO FOR THE FULL YEAR ADJUSTED FOR THE STOCK SPLIT HE ALSO SAID THE COMPANY IS REVIEWING RAISING THE DIVIDEND POSSIBLY IN THE THIRD QUARTER THE COMPANY LAST RAISED THE DIVIDEND 25 IN DECEMBER 1992 TO EIGHT CENTS A SHARE FOR THE SECOND QUARTER GERALD B ANDREWS PRESIDENT AND CHIEF OPERATING OFFICER EXPLAINED THAT JOHNSTON'S STAKE IN JUPITER NATIONAL INC A PUBLICLY TRADED VENTURE CAPITAL FIRM WOULD RESULT IN A PRETAX LOSS FOR JOHNSTON OF 174000 JUPITER HAD A 3 MILLION PORTFOLIO LOSS RELATED TO AN INVESTMENT IN ZOLL MEDICAL CORP A COMPANY WHOSE STOCK HAS SINCE NEARLY RECOVERED A YEAR AGO JUPITER NATIONAL CONTRIBUTED PRETAX PROFIT OF 28 MILLION TO JOHNSTON'S EARNINGS MR CHANDLER SAID HOWEVER THAT JOHNSTON EXPECTS THE JUPITER NATIONAL PORTFOLIO TO PROVIDE POSITIVE BENEFITS TO THE COMPANY IN THE THIRD AND FOURTH QUARTERS THE OFFICIALS EXPECT TO REPORT A 12 TO 14 INCREASE IN SALES FOR THE SECOND QUARTER FROM THE YEARAGO 337 MILLION THE OVERALL ORDER BACKLOG FOR THE PERIOD WAS UP ABOUT 13 TO 14 FROM THE PREVIOUS YEAR MR ANDREWS ALSO WAS OPTIMISTIC ABOUT THE BALANCE OF THE FISCAL YEAR FOR THE YEAR ENDED JUNE 30 1993 JOHNSTON HAD NET OF 89 MILLION OR 81 CENTS A SHARE RESTATED FOR THE SPLIT SALES WERE 1541 MILLION 9401280164 940128 WHO'S NEWS CANSTAR SPORTS INC CANSTAR SPORTS INC MONTREAL PIERRE BOIVIN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING DONALD MACMARTIN WHO RESIGNED LAST WEEK FROM THIS MAKER OF HOCKEY EQUIPMENT MR BOIVIN PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OF WEIDER SPORTING GOODS INC OF CALIFORNIA 9401280163 940128 WHO'S NEWS COMPUTER TASK GROUP INC COMPUTER TASK GROUP INC BUFFALO NY GEORGE B BEITZEL 65 YEARS OLD A RETIRED SENIOR VICE PRESIDENT OF INTERNATIONAL BUSINESS MACHINES CORP WAS ELECTED A DIRECTOR OF THIS INFORMATION TECHNOLOGY SERVICES CONCERN MR BEITZEL SUCCEEDS ROBERT STEPHENSON 55 AN IBM VICE PRESIDENT AND PRESIDENT OF IBM'S WORLD TRADE ASIA CORP UNIT WHO RESIGNED FROM CTG'S BOARD DUE TO THE DEMANDS OF HIS NEW ASIA POST MR STEPHENSON HAD SERVED AS A DIRECTOR FOR FIVE YEARS THE BOARD REMAINS AT SEVEN MEMBERS 9401280162 940128 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH GEORGE H CONRADES 54 WAS NAMED A DIRECTOR OF THIS ELECTRICAL EQUIPMENT BROADCASTING AND POWER GENERATION CONCERN INCREASING THE BOARD TO 10 MEMBERS MR CONRADES IS THE NEWLY APPOINTED CHIEF EXECUTIVE OFFICER OF BOLT BERANEK & NEWMAN INC IN CAMBRIDGE MASS IN 1992 HE ENDED A 31YEAR CAREER AT INTERNATIONAL BUSINESS MACHINES CORP WHERE HIS LAST POST WAS SENIOR VICE PRESIDENT OF CORPORATE MARKETING AND SERVICES 9401280161 940128 WHO'S NEWS OREGON STEEL MILLS INC OREGON STEEL MILLS INC PORTLAND ORE ROBERT W KEENER 62 YEARS OLD RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORTHWEST PIPELINE CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF STEEL PLATE AND PIPE HE FILLS A VACANCY ON THE NINEMEMBER BOARD CREATED BY THE DEATH OF ALAN FURTH IN JUNE 1993 9401280160 940128 POLITICS & POLICY SENATE VOTES 6238 FOR CLINTON TO END VIETNAM EMBARGO BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE IN A BIPARTISAN SHOW OF SUPPORT FOR RECONCILIATION WITH VIETNAM VOTED TO URGE PRESIDENT CLINTON TO END THE US TRADE EMBARGO AGAINST HANOI TWENTY REPUBLICANS JOINED 42 DEMOCRATS ON THE 6238 ROLL CALL AND THE DEPTH OF SUPPORT MAKES IT MORE LIKELY THAT MR CLINTON WILL MOVE SOON TO LIFT THE RESTRICTIONS FIRST IMPOSED ON VIETNAM AFTER THE FALL OF SAIGON TO COMMUNISTS IN 1975 IT WILL BE WEEKS NOT MONTHS PREDICTED SEN JOHN MCCAIN OF ARIZONA A FORMER NAVY PILOT AND PRISONER OF WAR WHO WAS PIVOTAL IN WINNING GOP SUPPORT FOR THE RESOLUTION MINORITY LEADER ROBERT DOLE OF KANSAS AND SEN PHIL GRAMM OF TEXAS TWO POTENTIAL PRESIDENTIAL CHALLENGERS IN 1996 OPPOSED THE MEASURE BUT MOST OF THE REMAINING GOP LEADERSHIP FOLLOWED THE EXAMPLE OF MINORITY WHIP ALAN SIMPSON OF WYOMING AND URGED ENDING THE EMBARGO AMONG DEMOCRATS THE POLITICAL PICTURE WAS AT LEAST AS MIXED WHILE BUSINESS AND OIL INTERESTS WERE INFLUENTIAL IN SHORING UP SOUTHERN SUPPORT A STRIKING NUMBER OF LIBERALS INCLUDING SENS PAUL WELLSTONE OF MINNESOTA AND CAROL MOSELEYBRAUN OF ILLINOIS OPPOSED THE MEASURE AN ADMINISTRATION OFFICIAL SAID LATER THAT NO TIMETABLE HAS BEEN SET FOR A DECISION BY MR CLINTON WHOSE RECORD OF AVOIDING THE DRAFT IN THE WAR MAKES VIETNAM AN AWKWARD ISSUE FOR HIM THERE WAS SOME BITTERNESS AMONG PROPONENTS THAT THE WHITE HOUSE POLITICAL APPARATUS REMAINED NEUTRAL DURING THE DEBATE LEFT TO CARRY THE FIGHT IN SUPPORT OF THE RESOLUTION WAS MASSACHUSETTS SEN JOHN KERRY A VIETNAM VETERAN WHO HAS LED HIS PARTY IN THE OFTEN TORTUOUS DEBATE OVER THE THOUSANDS OF AMERICANS STILL MISSING IN THE WAR LIKE SEN MCCAIN'S MR KERRY'S COMBAT RECORD HELPED HIM WITHSTAND ATTACKS BY VETERANS ORGANIZATIONS AND BOTH ARGUED THAT TRADE WOULD MAKE IT EASIER FOR AMERICANS TO MOVE ABOUT IN VIETNAM AND WORK WITH HANOI ON THE MISSING THIS ARGUMENT IS CRITICAL TO THE WHITE HOUSE AND THOUGH VIETNAM IS CREDITED WITH COOPERATING DURING THE PAST YEAR THE PRESIDENT'S MAIN STANDARD IS STILL WHETHER LIFTING THE EMBARGO WILL HELP IN GATHERING MORE DATA ON THE MISSING TO PRESERVE SOME LEVERAGE THE RESOLUTION STOPS SHORT OF URGING NORMALIZATION OR TRADE CONCESSIONS ENJOYED BY NEIGHBORS OF VIETNAM IT ALSO DRAWS A LINK BETWEEN IMPROVED RELATIONS AND VIETNAM'S SUCCESS IN IMPROVING ITS HUMANRIGHTS RECORD 9401280159 940128 VIACOM QVC ACCEPT DATE FOR LAST PARAMOUNT BIDS PARAMOUNT COMMUNICATIONS INC SAID BOTH VIACOM INC AND QVC NETWORK INC AGREED TO ABIDE BY TUESDAY'S DEADLINE TO SUBMIT THEIR BEST AND FINAL TAKEOVER BIDS FOR PARAMOUNT IN TALKS WITH TAKEOVERSTOCK TRADERS THIS WEEK VIACOM ADVISERS INDICATED THAT UNLESS BOTH BIDDERS AGREED TO HONOR THE DEADLINE VIACOM BELIEVED IT WOULD HAVE BEEN FREE TO EXTEND THE BIDDING BEYOND THE 5 PM FEB 1 CUTOFF PARAMOUNT SAID IT WANTS TO CONCLUDE THE PROLONGED CONTEST WHICH HAS ALREADY DRAGGED INTO ITS FIFTH MONTH IN A TIMELY MANNER VIACOM'S ROUGHLY 98 BILLION OFFER FOR PARAMOUNT TRAILS THE CURRENT MARKET VALUE OF QVC'S BID WORTH ABOUT 102 BILLION BUT THE PARAMOUNT BOARD HAS ENDORSED VIACOM'S BID BECAUSE IT CONTAINS MORE CASH AND A SECURITY OFFERING SOME EXTRA VALUE IF VIACOM'S STOCK PRICE DOESN'T APPRECIATE BOTH VIACOM AND QVC HAVE MADE CASHANDSTOCK BIDS 9401280158 940128 INTERNATIONAL BANESTO'S STOCK WILL RESUME TRADING WITH NO LIMIT ON HOW FAR IT CAN FALL BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID TRADING IN THE SHARES OF BANCO ESPANOL DE CREDITO SUSPENDED DEC 28 AFTER THE BANK OF SPAIN OUSTED ITS CHAIRMAN AND BOARD WILL RESUME TUESDAY WITH NO LIMIT ON HOW MUCH IT CAN FALL SOME ANALYSTS AND DEALERS SAID BANESTO SHARES COULD PLUMMET BETWEEN 60 AND 75 WHEN TRADING RESUMES THE BANK'S STOCK STOOD AT 1995 PESETAS 1411 WHEN TRADING WAS SUSPENDED SPANISH STOCKS AREN'T ALLOWED TO FALL MORE THAN 15 A DAY BUT THAT RULE HAS BEEN WAIVED FOR BANESTO IN A WRITTEN STATEMENT TO THE NATIONAL STOCK MARKET COMMISSION ANNOUNCING THE DECISION BANESTO CHAIRMAN ALFREDO SAENZ ALSO OUTLINED THE GENERAL RESCUE PLAN THAT SPAIN'S FIVE BIGGEST BANKS WILL BE ASKED TO SUPPORT TODAY THE BANK HOPES TO COVER THE 605 BILLION PESETA 428 BILLION HOLE IN ITS BOOKS WITH A 320 BILLION PESETA WRITEDOWN OF CAPITAL AND RESERVES THAT WOULD REQUIRE REDUCING THE NOMINAL VALUE OF THE BANK'S SHARES TO LESS THAN 500 PESETAS FROM 700 PESETAS EACH SPAIN'S BANKING SYSTEM THE STATEMENT SAID WILL BE ASKED TO PROVIDE BANESTO WITH 285 BILLION PESETAS THROUGH ACQUISITION OF ASSETS BANKERS NOTED HOWEVER THAT BANESTO PROBABLY WILL NEED TO SELL ASSETS WORTH FAR MORE IN ORDER TO GENERATE THAT AMOUNT IN PROFIT UNLESS IT SELLS LOANS AND OTHER ASSETS WITH ZERO BOOK VALUE BECAUSE OF THE WRITEDOWN BANESTO'S CAPITAL AND RESERVES WILL BE SEVERELY DEPLETED MR SAENZ SAID TO RECAPITALIZE THE BANK WILL NEED A CASH INJECTION OF NO MORE THAN 200 BILLION PESETAS AT A MEETING WITH BANESTO ON TUESDAY THE CHAIRMEN OF THE FIVE BIG BANKS REPORTEDLY REJECTED A PRELIMINARY VERSION OF THE RESCUE PLAN BECAUSE IT ASKED THEM TO ASSUME MOST OF THE BURDEN FOR BANESTO'S BAILOUT MR SAENZ APPEARS TO HAVE MADE AN OVERTURE TO THE BANKS BY OFFERING TO REDUCE THE NOMINAL VALUE OF THE SHARES BY MORE THAN THE 200 PESETAS THAT MOST ANALYSTS HAD EXPECTED MANUEL MARTIN THE EXECUTIVE IN CHARGE OF ECONOMIC ANALYSIS AT BANCO POPULAR THE SMALLEST AND MOST PROFITABLE OF SPAIN'S BIG BANKS SAID THAT FRESH CAPITAL IS LIKELY TO BE CHANNELED INTO BANESTO THROUGH THE DEPOSITGUARANTEE FUND WHICH WILL BE FINANCED THROUGH A COMBINATION OF BANK LOANS AND CONTRIBUTIONS THE FEE BANKS CURRENTLY PAY TO THE FUND PROBABLY WILL BE RAISED AGAIN THIS YEAR AFTER HAVING BEEN CUT IN 1993 IN THE CASE OF BANCO POPULAR MR MARTIN SAID THIS WILL MEAN AN INCREASE IN ITS ANNUAL CONTRIBUTION OF ABOUT 900 MILLION PESETAS TO 34 BILLION PESETAS BANKS ALONG WITH THE CENTRAL BANK ARE LIKELY TO LEND THE REST OF THE MONEY THAT THE DEPOSITGUARANTEE FUND REQUIRES TO REFLOAT BANESTO IN THE HOPE THAT IT MAY BE RECOVERED AT A LATER DATE MR SAENZ SAID THE 605 BILLION PESETA SHORTFALL WHICH HE DESCRIBED AS A PROVISIONAL ESTIMATE CAN BE BROKEN DOWN AS FOLLOWS 281 BILLION PESETAS TO COVER PROVISIONS FOR NONPERFORMING LOANS 185 BILLION PESETAS TO COVER PROVISIONS FOR CAPITAL LOSSES ON ITS INVESTMENT PORTFOLIO 77 BILLION PESETAS TO COVER PROVISIONS FOR PENSION FUNDS 42 BILLION FOR OTHER ADJUSTMENTS ON ITS BALANCE SHEET AND A WRITEOFF OF 20 BILLION PESETAS TO COVER 1993 LOSSES THE PROPOSED PLAN WAS FILED WITH THE COMMISSION IN ORDER TO HELP SHAREHOLDERS ASSESS WHAT MIGHT HAPPEN WHEN TRADING IN BANESTO'S SHARES RESUMES ON FEB 1 MORE THAN JUST SHAREHOLDERS WILL BE TRIPPED UP BY THE SEIZURE OF BANESTO US CENTRAL CREDIT UNION HAD DEPOSITED 255 MILLION IN BANESTO THE US HOUSE BANKING COMMITTEE SAID WEDNESDAY THE DEPOSITS OF US CENTRAL WHICH HANDLES INVESTMENT AND SERVICES FOR AMERICA'S 13000 CREDIT UNIONS WEREN'T INSURED HOWEVER THE CENTRAL BANK OF SPAIN SAYS IT INTENDS TO GUARANTEE ALL FOREIGN AND DOMESTIC DEPOSITS IN BANESTO THE BANKING PANEL'S DISCOVERY THAT US CENTRAL BASED IN OVERLAND PARK KAN WAS INVOLVED WITH BANESTO HAS SPURRED THE PANEL TO FIND OUT WHETHER OTHER BANKS HAD DEPOSITS THERE JP MORGAN & CO THE NEW YORK BANKING COMPANY STANDS TO LOSE A MAJOR INVESTMENT IT MADE IN BANESTO 9401280157 940128 UNISYS CORP RECEIVES CONTRACT BLUE BELL PA UNISYS CORP SAID IT RECEIVED A CONTRACT FOR A CHECKPROCESSING SYSTEM FROM WILMINGTON TRUST CO A UNIT OF WILMINGTON TRUST CORP TERMS WEREN'T DISCLOSED UNISYS SAID THE CONTRACT INCLUDES HARDWARE SOFTWARE INSTALLATION AND SUPPORT SERVICES THE COMPANY SAID ITS INFOIMAGE ICPS SOFTWARE WILL PROCESS ALL PROOFOFDEPOSIT ITEMS THE COMPANY SAID THE SYSTEM WILL BE INSTALLED OVER THE NEXT SEVERAL MONTHS 9401280156 940128 MONEY FUND ASSETS ADVANCE 337 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS EDGED UP 337 BILLION TO 60360 BILLION FROM A REVISED 60023 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 230 BILLION TO 39984 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 404 TAXABLE MONEY MARKET FUNDS DECREASED BY 158 BILLION TO 30945 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS FELL BY 7257 MILLION TO 9040 BILLION ASSETS OF THE 280 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 568 BILLION TO 20375 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 226 TAXABLE MONEY MARKET FUNDS ROSE BY 574 BILLION TO 18106 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL BY 618 MILLION TO 2269 BILLION 9401280155 940128 GENERAL TIRE TO INCREASE PRICES AKRON OHIO GENERAL TIRE INC ANNOUNCED A PRICE INCREASE OF 3 TO 4 ON ITS PRIVATELABEL TIRES FOR THE REPLACEMENT MARKET THE MOVE BY THE UNIT OF GERMANY'S CONTINENTAL AG FOLLOWS SIMILAR PRICE INCREASES IN RECENT WEEKS BY RIVAL TIRE MAKERS GENERAL TIRE SAID THE INCREASE NECESSITATED BY RISING COSTS TAKES EFFECT APRIL 1 AND COVERS PASSENGER LIGHTTRUCK AND FARM TIRES FOR THE MARKET THE COMPANY'S LAST PRIVATELABEL TIRE PRICE INCREASE WAS APRIL 1992 9401280154 940128 REGAL CINEMAS TO BUY THEATERS KNOXVILLE TENN REGAL CINEMAS INC SAID IT REACHED A DEFINITIVE AGREEMENT TO ACQUIRE 13 THEATERS FROM CERTAIN UNITS OF NATIONAL THEATRE HOLDINGS CORP FOR ABOUT 245 MILLION THE PURCHASE PRICE WILL BE PAID IN CASH AND FINANCED BY REGAL CINEMAS' AVAILABLE CASH AND CREDIT FACILITY MOST OF THE THEATERS ARE LOCATED IN METROPOLITAN CLEVELAND AKRON AND YOUNGSTOWN OHIO REGAL CINEMAS SAID IT EXPECTS TO CLOSE THE ACQUISITION IN LATE MARCH NATIONAL THEATRE HOLDINGS IS BASED IN CLEVELAND 9401280153 940128 SCOTT PAPER RECEIVES LOWER MOODY'S RATING ON LONGTERM DEBT NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE LONGTERM DEBT RATING OF SCOTT PAPER CO TO BAA1 FROM SINGLEA3 CITING WEAKNESS IN SCOTT'S TISSUEPAPER BUSINESS ABOUT 18 BILLION IN DEBT IS AFFECTED THE DEBTRATING AGENCY SAID IT BELIEVED THE LONGTERM PROFITABILITY OF THE WORLDWIDE TISSUE BUSINESS WILL BE SUBSTANTIALLY REDUCED MAKING SCOTT'S EARNINGS IN THAT SEGMENT MORE VOLATILE MOODY'S SAID THE PREVIOUS HIGH LEVEL AND STABLE PROFITABILITY OF THE TISSUE BUSINESS HAD BEEN A KEY ELEMENT OF SCOTT'S DEBT RATING SCOTT WHICH IS BASED IN PHILADELPHIA AND ALSO SELLS CLEANING PRODUCTS AND PRINTING PAPERS TOOK A 381 MILLION CHARGE FOR THE FOURTH QUARTER ON WEDNESDAY AS PART OF A SWEEPING EFFORT TO CUT COSTS WE DON'T SHARE MOODY'S POINT OF VIEW THAT THE LONGTERM PROFITABILITY OF TISSUE WILL BE SUBSTANTIALLY REDUCED A SCOTT SPOKESMAN SAID ALSO THIS ACTION COMES AT A TIME WHEN WE'VE JUST PUT THE PIECES TOGETHER TO BEGIN SHOWING IMPROVEMENT 9401280152 940128 TECHNOLOGY & HEALTH INTEL TO SHIP ITS NEXTGENERATION CHIP IN 1995 BOOSTS OUTLAYS FOR PRODUCTION BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP KEEPING UP THE PRESSURE ON RIVAL CHIP MAKERS PROMISED TO SHIP ITS NEXTGENERATION MICROPROCESSOR IN 1995 AND SAID IT WILL BOOST SPENDING ON NEW FACTORY CAPACITY THIS YEAR BY 26 TO 24 BILLION ANDREW GROVE INTEL'S CHIEF EXECUTIVE OFFICER SAID AT A MEETING WITH SECURITIES ANALYSTS IN NEW YORK THAT THE SANTA CLARA CALIF COMPANY WILL DEMONSTRATE THE NEW CHIP CODENAMED P6 ON PERSONAL COMPUTERS BY THIS TIME NEXT YEAR AND BEGIN VOLUME SHIPMENTS BY THE FOURTH QUARTER OF 1995 THIS IS MORE AGGRESSIVE THAN I WOULD HAVE ASSUMED SAID RAJIV CHAUDHRI AN ANALYST AT GOLDMAN SACHS & CO IF THERE IS ONE WORD TO SUMMARIZE THIS MEETING IT IS AGGRESSIVE INTEL DOES NOT PLAN TO REST ON ITS LAURELS INTEL'S CURRENT FLAGSHIP THE PENTIUM WAS INTRODUCED LAST SPRING ABOUT FOUR YEARS AFTER ITS 486 CHIP MR GROVE'S REMARKS ABOUT P6 WOULD INDICATE INTEL HAS CUT ITS DEVELOPMENT TIME ROUGHLY IN HALF THOUGH HE DID NOT QUANTIFY SHIPMENTS A COMPANY SPOKESMAN SAID INTEL USES THE WORD VOLUME TO SUGGEST HUNDREDS OF THOUSANDS OF CHIPS INTEL'S PRONOUNCEMENTS COME AS THE COMPANY FACES INCREASED COMPETITION FROM POWERPC A NEW CHIP BACKED BY INTERNATIONAL BUSINESS MACHINES CORP MOTOROLA INC AND APPLE COMPUTER INC AS WELL AS OTHERS THAT CLONE INTEL'S MICROPROCESSOR DESIGN THE SNEAK PEAK AT P6 SERVES TO REASSURE POTENTIAL PENTIUM CUSTOMERS THAT INTEL'S CHIP ARCHITECTURE GIVES THEM A PATH TO EVEN GREATER POWER THERE IS NO COINCIDENCE THAT THEY ARE DOING THIS JUST AS PENTIUM IS GAINING SOME MOMENTUM SAID MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT A NEWSLETTER IN SEBASTOPOL CALIF MR GROVE SAID HE EXPECTS PENTIUM TO ACCOUNT FOR 15 OF THE PC BUSINESS IN 1994 HE DID NOT GIVE A MORE DETAILED ESTIMATE BUT MR CHAUDHRI PREDICTS PENTIUM SHIPMENTS AT BETWEEN 65 MILLION TO 10 MILLION UNITS INTEL'S 26 JUMP IN CAPITAL SPENDING GROWTH IS OFF FROM ITS PACE THIS YEAR WHEN SPENDING GREW 58 TO 19 BILLION YET AT 24 BILLION INTEL IS SPENDING MORE THAN ITS FOUR LARGEST COMPETITORS COMBINED NEWER FACTORIES ALLOW INTEL TO CRAM INCREASING NUMBERS OF TRANSISTORS ON EACH CHIP AND SHRINK CHIP SIZES ON THE NASDAQ STOCK MARKET INTEL SHARES CLOSED AT 6425 UP 625 CENTS 9401280151 940128 SOME CAR MAKERS PLAN OVERTIME FOR WEEKEND DETROIT SEVERAL AUTO MAKERS SAID THEY PLAN OVERTIME THIS WEEKEND AT US ASSEMBLY PLANTS IN PART TO MAKE UP PRODUCTION SHORTFALLS LAST WEEK AUTOMOTIVE NEWS A TRADE PUBLICATION ESTIMATES THAT THE US DOMESTIC AUTO MAKERS PRODUCED 47785 FEWER CARS AND TRUCKS LAST WEEK THAN PLANNED BECAUSE OF PLANT CLOSURES AS A RESULT OF SEVERE WEATHER CONDITIONS FORD MOTOR CO WAS THE HARDEST HIT OF THE AUTO MAKERS WITH 15 ASSEMBLY PLANTS CLOSED BECAUSE OF THE BAD WEATHER ALTOGETHER THE DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 258640 CARS AND TRUCKS THIS WEEK UP 38 FROM THE 188076 VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER 9401280150 940128 INTERNATIONAL TWO MEXICAN EXECUTIVES TO BATTLE FOR BANKING TELEPHONE BUSINESS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CORPORATE WARFARE IS DAWNING IN MEXICO ALTHOUGH THE MEXICAN BUSINESS LANDSCAPE IS KNOWN MORE FOR ITS MONOPOLIES THAN FOR ITS COMPETITION NOT LONG FROM NOW TWO OF MEXICO'S CORPORATE TITANS ARE LIKELY TO DO BATTLE FOR BANKING AND TELEPHONE CLIENTS ON ONE SIDE IS CARLOS SLIM HELU THE PROPRIETOR OF TELEPHONE MONOPOLY TELEFONOS DE MEXICO WHO WAS ALSO AWARDED A BANKING LICENSE LAST FALL ON THE OTHER IS ROBERTO HERNANDEZ CHIEF EXECUTIVE OFFICER AT GRUPO FINANCIERO BANAMEXACCIVAL KNOWN AS BANACCI HE PLANS TO LAUNCH A LONGDISTANCE NETWORK HERE WITH MCI COMMUNICATIONS CORP IN LATE 1996 ASSUMING THE GOVERNMENT AWARDS THE VENTURE A LICENSE WITH TWO SUCH BIG NAMES GOING AFTER EACH OTHER ON THE TWO DIFFERENT FRONTS OF TELEPHONES AND BANKS THE MCIBANACCI ANNOUNCEMENT MARKS MEXICO'S MOVE INTO COMPETITIVE CAPITALISM EXECUTIVES SAY THEY SAY THIS COULD BE THE YEAR OF THE JOINT VENTURE IN MEXICO AS COMPANIES TEAM UP WITH TECHNOLOGICALLY PROFICIENT PARTNERS TO STEAL MARKET SHARE AND PROFITS FROM COMPETITORS WE WILL SEE DRAMATIC CHANGES IN THE CONFIGURATIONS OF MAJOR CONGLOMERATES IN MEXICO AS COMPANIES STREAMLINE BUSINESSES AND TEAM UP WITH FOREIGN PARTNERS PREDICTS MANUEL PENAMORROS HEAD OF CHASE MANHATTAN BANK'S OFFICE HERE CHASE ITSELF HE SAYS IS LOOKING FOR BOTH US AND EUROPEAN PARTNERS FOR SEVERAL MEXICAN COMPANIES MEXICO IS COMING INTO A NEW ERA OF MORE COMPETITION ADDS CARRIE SCHLOSS COMANAGER OF THE KEMPER INTERNATIONAL FUND THE LOOMING BATTLE BETWEEN MESSRS HERNANDEZ AND SLIM IS PARTICULARLY INTRIGUING BECAUSE BOTH MEN HAVE THEIR EYES ON THE POTENTIALLY HUGE MARKET FOR ELECTRONIC BANKING IN MEXICO FINANCIAL SERVICES EVERYTHING FROM MORTGAGE LENDING TO PENSION FUNDS ARE IN AN INFANTILE STAGE HERE YEARS OF HYPERINFLATION AND DEVALUATION DESTROYED THE CONCEPT OF SAVING MONEY IN A BANK MEXICO IS STILL VERY MUCH A CASH ECONOMY OPENING BANK ACCOUNTS AND ORGANIZING A DIRECTDEPOSIT SYSTEM FOR EMPLOYEES CAN BE A HUGE CHORE FOR COMPANIES HERE BANKERS SAY EVEN THOUGH CASH CARDS ARE AVAILABLE MANY MEXICANS STILL STAND IN LINE AT TELLER WINDOWS BOTH MESSRS SLIM AND HERNANDEZ APPEAR TO BE AIMING TO OFFER CORPORATIONS THE CONVENIENCE OF ONESTOP SHOPPING FOR BOTH TELECOMMUNICATIONS AND CREDIT SERVICES FOR EXAMPLE BANAMEX THE NAME OF BANACCI'S BIG BANK COULD OFFER A CORPORATION A DATA HIGHWAY TO SHIP PHONE MESSAGES OR FINANCIAL AND CORPORATE INFORMATION AROUND THE COUNTRY EMPLOYEES COULD HAVE ELECTRONIC ACCOUNTS WHERE THEY RECEIVE THEIR CHECKS AND PAY THEIR BILLS JORGE HIERRO A BANACCI VICE PRESIDENT SAYS WE WANT TO MOVE FROM A CASH ECONOMY TO AN ELECTRONIC ECONOMY SKIPPING CHECKS OR THE PAPER STAGE THE CAREERS OF MESSRS SLIM AND HERNANDEZ HAVE CROSSED IN WAYS THAT MAKE THEIR NEW RIVALRY INTERESTING BOTH MEN HAVE APPEARED ON FORBES MAGAZINE'S LIST OF MEXICAN BILLIONAIRES BOTH HAVE EASY ACCESS TO MEXICO'S POLITICAL LEADERS AND CORPORATE CHIEFTAINS AND IN 1990 THEY FACED OFF IN A BIDDING CONTEST FOR THE GRAND PRIZE OF MEXICO'S PRIVATIZATIONS TELEFONOS DE MEXICO MR SLIM WON A YEAR LATER MR HERNANDEZ LAUNCHED A WINNING 32 BILLION BID FOR BANCO NACIONAL DE MEXICO MEXICO'S LARGEST BANKING GROUP BOTH TELMEX AND BANAMEX CAME WITH THEIR PROBLEMS BUT MR SLIM WON A MONOPOLY CONCESSION FROM THE GOVERNMENT PROTECTING HIS INVESTMENT FOR SEVEN YEARS FROM COMPETITION GIVING HIM TIME TO REBUILD THE INEFFICIENT PHONE GIANT MR HERNANDEZ HAD HIS OWN RESTRUCTURING TO DO HE PAID A HEFTY 262 TIMES BOOK VALUE FOR A BANK THAT HAD MILLIONS OF DOLLARS IN LOANS THAT WERE DEAD BODIES AS ONE BANACCI OFFICIAL CALLS THEM AT THE END OF 1992 BANAMEX FOUND THAT 61 OF ALL LOANS ON THEIR BOOKS WERE PAST DUE UNLIKE MR SLIM THOUGH MR HERNANDEZ HAD TO COMPETE WITH MORE THAN A DOZEN OTHER MEXICAN BANKS WHILE REORGANIZING AND NOW FACES A BUNCH OF FOREIGN BANKS DUE TO ARRIVE HERE AROUND MIDYEAR THEN LAST FALL WHEN MEXICAN BANKERS WERE COMPLAINING THE LOUDEST ABOUT THE ONSLAUGHT OF COMPETITION THE GOVERNMENT STUNNED THEM ALL BY AWARDING A BANKING LICENSE TO MR SLIM THE IMPLICATIONS WERE HUGE THROUGH TELMEX MR SLIM HAS A VIRTUAL CREDIT PROFILE ON EVERY MEXICAN WITH A PHONE HE KNOWS EXACTLY WHO SPENDS MONEY IN MEXICO BECAUSE PEOPLE SPEND MONEY ON PHONE BILLS MORE REGULARLY THAN THEY SPEND ON ANYTHING ELSE SAYS PABLO MANCERA TREASURER OF INVESTMENT FIRM GRUPO SANTANDER MEXICO FERNANDO CHICO PARDO THE HEAD OF GRUPO FINANCIERO INBURSA THE INCUBATOR FOR MR SLIM'S BANKING FORAY DIDN'T RETURN PHONE CALLS INQUIRING ABOUT HIS PLANS BUT EVERY MEXICAN BANKER FEARS SOME COMBINATION OF TELMEX AND FINANCIAL SERVICES IS IN THE WORKS IT WOULD BE SILLY NOT TO USE TELMEX IN THIS VENTURE SLIM IS DEVELOPING A BANK FOR THE NEXT CENTURY SAYS SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT UNTIL THIS WEEK MR SLIM WAS POTENTIALLY BANACCI'S MOST THREATENING COMPETITOR NEWSPAPERS HERE ARE FULL OF RUMORS THAT TELMEX WILL SOON SEAL A LONGDISTANCE JOINT VENTURE WITH AMERICAN TELEPHONE & TELEGRAPH CO BUT FOR NOW BANACCI HAS THE LARGEST BANK IN MEXICO AND ALSO HAS AS A PARTNER MCI WHICH HAS MADE A FORTUNE POACHING ON TROUBLED MONOPOLIES LIKE TELMEX MR SLIM HAS A SMALL BROKERAGE FIRM A PIECE OF PAPER THAT SAYS HE CAN OPERATE AS A BANK MR PARDO AND TELMEX HERNANDEZ HAS ALWAYS HAD THE GUSANO OR WORM EATING AT HIM ABOUT LOSING TELMEX ONE US BANKER OPINES HERNANDEZ IS AFTER SLIM NOW 9401280149 940128 WHO'S NEWS CANADIAN PACIFIC LTD CANADIAN PACIFIC LTD MONTREAL PAUL D GILMORE 46 YEARS OLD WAS NAMED PRESIDENT OF THE DELAWARE & HUDSON RAILWAY UNIT OF THIS TRANSPORTATION NATURAL RESOURCES AND MANUFACTURING CONCERN A NEW POSITION MR GILMORE WAS MOST RECENTLY VICE PRESIDENT OF MARKETING AND SALES INTERMODAL FREIGHT SYSTEMS FOR THE COMPANY'S CP RAIL SYSTEM DIVISION 9401280148 940128 MARKETING & MEDIA TV GUIDE MAY ENTER BUSINESS OF LISTINGS FOR CABLE SUBSCRIBERS NEW YORK NEWS CORP SAID ITS TV GUIDE PLANS TO ENTER THE MARKET FOR MONTHLY CABLETELEVISION GUIDES PREPARED IN PARTNERSHIP WITH CABLETV SYSTEMS AROUND THE COUNTRY NEWS CORP'S BRIEF STATEMENT DIDN'T PROVIDE DETAILS A SPOKESWOMAN FOR TV GUIDE SAID THE COMPANY DOESN'T HAVE A SPECIFIC LAUNCH DATE YET AND HASN'T COMPLETED AN AGREEMENT WITH ANY CABLE SYSTEM OPERATORS THE BUSINESS TV GUIDE PROPOSES TO ENTER INVOLVES PARTNERSHIP ARRANGEMENTS WITH CABLE SYSTEMS TO PREPARE GUIDES THAT ARE AUTOMATICALLY SENT TO LOCAL SUBSCRIBERS THAT BUSINESS IS CURRENTLY DOMINATED BY TVSM INC OF HORSHAM PA IN WHICH MANY MAJOR CABLE OPERATORS HAVE BOUGHT STAKES IN RECENT YEARS LAST FALL THERE WERE REPORTS THAT NEWS CORP AND CLOSELY HELD TVSM WERE IN MERGER TALKS BUT BOTH COMPANIES DENIED THOSE REPORTS TV GUIDE'S SUBSCRIBER BASE HAS DWINDLED IN RECENT YEARS TO ABOUT 15 MILLION AND THE MAGAZINE HAS BEGUN A NUMBER OF STRATEGIES TO REMAIN A LEADER IN PROVIDING TELEVISION SCHEDULE INFORMATION AMONG OTHER THINGS THE COMPANY IS WORKING ON AN ELECTRONIC VERSION OF ITS SCHEDULES CURRENTLY TV GUIDE PROVIDES SPECIAL CABLESPECIFIC EDITIONS OF ITS MAGAZINE IN 10 CITIES INCLUDING NEW YORK THESE EDITIONS INDICATE NOT ONLY THAT A PROGRAM WILL APPEAR ON SAY HBO BUT ALSO GIVE THE LOCAL CHANNEL ON WHICH HBO AIRS IN THAT MARKET 9401280147 940128 INTERNATIONAL POLAND REJECTS TV BIDS FROM FOREIGN COMPANIES SPECIAL TO THE WALL STREET JOURNAL WARSAW POLAND TURNED AWAY SOME GLOBAL MEDIA GIANTS AND AWARDED ITS FIRST PRIVATESECTOR NATIONAL TV NETWORK LICENSE TO A POLISH VENTURE THE NATIONAL RADIO AND TELEVISION COUNCIL GAVE THE NOD TO POLSAT A SMALL POLISH SATELLITE TV OPERATOR OVER NINE COMPETING BIDS FROM GROUPS BACKED BY SUCH COMPANIES AS TIME WARNER INC BERTELSMANN AG AND CAPITAL CITIES/ABC INC FOR THE TIME BEING THE AWARD SETTLES CONCERNS THAT POLAND'S AIR WAVES COULD BE TOO STRONGLY INFLUENCED BY FOREIGN PROGRAMMING POLAND'S 1992 BROADCAST MEDIA LAW ALLOWS UP TO 33 FOREIGN OWNERSHIP OF A TV VENTURE HOWEVER THERE IS A POSSIBILITY THAT POLSAT COULD SEEK SO MUCH FOREIGN HELP THAT THEY TOO COULD BE CONSIDERED LESS THAN A TRUE POLISH ENTERPRISE THAT'S BECAUSE THE NEW NETWORK IS EXPECTED TO REQUIRE AN INITIAL INVESTMENT OF UP TO 100 MILLION FOR EQUIPMENT AND PROGRAMMING A SPOKESMAN FOR POLSAT SAID YESTERDAY THAT THE ENTERPRISE PLANS TO RAISE ABOUT 20 MILLION IN A PRIVATE STOCK PLACEMENT IN THE COMING MONTHS 9401280146 940128 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS NOBODY REALLY KNOWS WHEN THE LAW BUSINESS WILL EMERGE FROM THE DOLDRUMS BUT THERE IS ONE INDICATOR THAT SEEMS TO BE POINTING TOWARD A STRONG RECOVERY IN 1994 WE'LL CALL IT THE LAWYERS' TRAVEL INDEX A TRAVEL AGENCY THAT SPECIALIZES IN LAWYERS' BUSINESS TRIPS REPORTS THAT IT HAS TALLIED THE NUMBER OF SUCH TRIPS TAKEN LAST YEAR BY ATTORNEYS AT ABOUT 100 FIRMS AND COMPARED THE TOTAL WITH THAT FROM THE PREVIOUS YEAR THE AGENCY'S FINDINGS LAWYERS' BUSINESS TRAVEL SOARED 17 LAST YEAR THE FIRST TIME IT HAS RISEN AT ALL SINCE THE 1980S MEASURING FUTURE LEGAL BILLINGS BASED ON CURRENT BUSINESS TRAVEL IS AKIN TO PREDICTING CHRISTMAS SALES BASED ON PURCHASES OF WRAPPING PAPER THOUGH A ROUGH GAUGE IT BEATS GUESSING AND SEEMS MORE RELIABLE THAN COUNTING ON THE ROSY PROJECTIONS OFFERED MOST YEARS BY LAWFIRM MANAGERS LEGAL BUSINESS TRIPS AFTER ALL TRANSLATE DIRECTLY INTO FEES FOR LAW FIRMS NOT ONLY DO LAWYERS CHARGE CLIENTS FOR THE WORK PERFORMED ON THEIR BEHALF BUT ALSO TYPICALLY FOR ALL OF THE TRAVEL COSTS SINCE THE TRAVEL OCCURS MONTHS BEFORE THE BILLS ARE PAID AND GET REFLECTED IN A FIRM'S REVENUE THE TRAVEL INDEX MAY PROVIDE THE EARLIEST SIGN THAT LEGAL WORK IS PICKING UP MANY LEGAL CONSULTANTS AND OTHER INDUSTRY WATCHERS CONTINUE TO STAND BY GRIM PREDICTIONS THAT LAW FIRMS WILL HAVE TO SHRINK AS MUCH AS 30 IN COMING YEARS MEANWHILE LAWYERS HAVE HAD TO SIT ON THE SIDELINES WHILE POSITIVE REPORTS ROLLED IN FROM OTHER ECONOMIC SECTORS INDEXES OF CONSUMER SPENDING HOME BUILDING AND FACTORY PRODUCTION ARE UP PAUL METSELAAR PRESIDENT OF THE LAWYERS' TRAVEL SERVICE BASED IN NEW YORK SAYS HIS COMPANY'S NATIONWIDE NUMBERS ARE THE FIRST DRUMBEAT OF A COMING BOOM IN THE PROFESSION CLEARLY WHAT'S HAPPENING IS THAT LAW FIRMS ARE ABOUT TO START GETTING A LOT BUSIER FOR THE FIRST TIME IN SEVERAL YEARS HE SAYS MR METSELAAR SEES A SURGE IN BILLABLE HOURS ESPECIALLY AT LAW FIRMS WITH INTERNATIONAL PRACTICES BASED ON HIS INFORMATION THAT OVERSEAS TRAVEL IS WAY UP AMERICAN LAWYERS ARE GOING MUCH MORE FREQUENTLY TO LATIN AMERICA EUROPE AND THE FAR EAST THAT'S REALLY WHERE THE PLAYING FIELD IS GOING TO BE IN THE '90S THE COMPANY WHICH BOOKS FLIGHT HOTEL AND RELATED ARRANGEMENTS FOR HALF OF THE COUNTRY'S 30 LARGEST LAW FIRMS AND A HOST OF OTHERS ALSO GATHERED DATA ON LAW FIRMS' RECRUITING PATTERNS MOST LAW FIRMS REQUEST THAT LAWYERS' TRAVEL KEEP TRACK OF RECRUITING TRIPS SEPARATELY FROM OTHER BUSINESS TRIPS MR METSALAAR SAYS BECAUSE TRAVEL ON BEHALF OF THE FIRM CAN'T BE BILLED TO CLIENTS HERE TOO THE LAWYERS' TRAVEL INDEX HINTS OF HAPPIER DAYS BOTH FOR FIRMS THEMSELVES AND THEIR PROSPECTIVE EMPLOYEES RECRUITING TRIPS LAST YEAR WERE UP 34 NATIONWIDE FROM THE PRIOR YEAR MR METSALAAR SAYS LAWYERS' TRAVEL REPORTS THAT ITS OVERALL SALES FOR RECRUITINGRELATED TRIPS IN 1993 WERE UP 40 OVER THE YEAR BEFORE THAT SUGGESTS FIRMS ARE SEEKING TO BUILD UP THEIR RANKS AGAIN AFTER YEARS OF DOWNSIZING AND LAYOFFS LAWYERS IN PRACTICE AREAS THAT HAD BEEN BASICALLY DEAD FOR THE PAST THREE YEARS SUCH AS REAL ESTATE ARE ON THE PROWL AGAIN MR METSALAAR SAYS ADDITIONALLY WITH MERGERS AND ACQUISITIONS WORK COMING BACK TO LIFE LAWYERS ARE AGAIN FLYING AROUND THE COUNTRY LOOKING TO CLINCH DEALS THE TRAVEL EXECUTIVE ISN'T QUITE SURE WHAT TO MAKE OF A THIRD INDICATOR LAWYERS' VACATION TRIPS ALSO ARE UP SUBSTANTIALLY ABOUT 15 OVER THE PAST YEAR LAWYERS ARE CLEARLY STARTING TO SPEND MORE MONEY ON THEMSELVES MR METSALAAR SAYS MAYBE IT INDICATES PARTNERS ARE STARTING TO INCREASE THEIR INCOME DRAWS OR MAYBE ASSOCIATES ARE FEELING MORE CONFIDENT BUT THEN AGAIN YOU'D THINK IF THEY WERE BUSIER THEY WOULD HAVE LESS TIME FOR VACATIONS THEN AGAIN MAYBE IF THEY WEREN'T SO BUSY THE VACATION NUMBERS WOULD BE HIGHER THE LAWYERS' TRAVEL INDEX ALSO MAKES REGIONAL CALCULATIONS LAWFIRM FINANCES IT SEEMS ARE LIKELY TO START LOOKING BETTER SOONER IN THE NORTHEAST THAN IN SOUTHERN CALIFORNIA LAST YEAR LAWYERS' BUSINESS TRIPS WERE UP 18 FOR LAWYERS BASED IN NEW YORK AND UP 19 FOR WASHINGTON FIRMS AND DOWN 10 FOR LOS ANGELES OPERATIONS ATTORNEYS AT 10 OF NEW YORK'S 25 LARGEST FIRMS TOOK 7191 BUSINESS TRIPS IN THE SECOND HALF OF LAST YEAR UP FROM 5878 DURING THE SAME PERIOD IN THE PREVIOUS YEAR ACCORDING TO THE INDEX IN GENERAL THE INDEX SHOWS THAT NEW YORK LITIGATORS ARE A PERIPATETIC LOT TAKING AN AVERAGE OF 18 BUSINESS TRIPS A YEAR HOW FAR THEY ARE GOING THOUGH ISN'T CLEAR THE TRAVEL SERVICE DIDN'T SUPPLY AN AVERAGE MILES PER LAWYER ESTIMATE WARD BOWER A PRINCIPAL AT THE LEGAL CONSULTING FIRM ALTMAN WEIL PENSA INC SAYS THE REGIONAL TRAVEL PATTERNS TRACK HIS SENSE BASED ON ANECDOTAL EVIDENCE THAT THE LEGAL BUSINESS IS RECOVERING IN THE NORTHEAST WHILE STILL STRUGGLING IN CALIFORNIA WHEN HE PUTS A WET FINGER TO THE ECONOMIC WINDS MR BOWER SENSES OPTIMISM IN THE LEGAL BUSINESS AS A WHOLE QUITE A FEW FIRMS HAD A BETTER YEAR THAN PROJECTED IN '93 AND VOLUME APPEARS TO BE BETTER THAN IT'S BEEN AT THIS TIME OF YEAR FOR THE PAST TWO OR THREE YEARS HE SAYS BUT MR BOWER CAUTIONS AGAINST BETTING THE RANCH ON THE LAWYERS' TRAVEL INDEX THE TRIPS COULD BE SHORTER THAN IN THE INDULGENT '80S AND SOME CLIENTS HAVE STRUCK TOUGH DEALS WITH THEIR LAW FIRM ABOUT HOW MUCH THEY WILL REIMBURSE FOR TRAVEL EVEN IF THE PREMISE IS CORRECT HE ADDS THERE'S NO WAY TO PROVE IT YET BECAUSE OF THE LAG TIME IN CLIENT BILLPAYING 9401280145 940128 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JAN 21 ACCOUNTED FOR 126 OR AN AVERAGE 379 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE JAN 21 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 218 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 39 INVOLVED STOCKINDEX ARBITRAGE UP FROM 335 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 518 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 382 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 10 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES UBS SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND SMITH BARNEY DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS 9401280144 940128 AT&T REACHES CONTRACTS NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT REACHED TELEPHONE AND TELECOMMUNICATIONS SERVICE CONTRACTS WITH THREE MAJOR CUSTOMERS CHEVRON CORP SAN FRANCISCO REACHED A 42 MILLION AGREEMENT FOR LONGDISTANCE SERVICES EXTENDING ITS CONTRACT THROUGH MID1997 OWENSCORNING FIBERGLAS CORP TOLEDO OHIO EXTENDED FOR FOUR YEARS OR 12 MILLION A CONTRACT FOR VOICE AND DATA COMMUNICATIONS SERVICES AND BANC ONE CORP COLUMBUS OHIO EXTENDED VARIOUS SERVICE AGREEMENTS WITHOUT DISCLOSING THE VALUE 9401280143 940128 WORLD MARKETS TOKYO PRICES SLIDE 13 BUT MOST OTHER MARKETS IN REGION LOG GAINS LONDON STOCKS DRIFT DOWN A WALL STREET JOURNAL NEWS ROUNDUP EQUITIES IN TOKYO SKIDDED 13 THURSDAY AS JITTERS ABOUT JAPANESE POLITICAL REFORM CONTINUED LONDON SHARES DRIFTED DOWN TO END AT THE DAY'S LOWS IN UNINSPIRED DEALINGS BUT MANY OTHER ASIAN AND PACIFIC BOURSES POSTED SOLID GAINS SEVERAL IN TECHNICAL REBOUNDS FOLLOWING RECENT LOSSES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11545 UP 101 REFLECTING HIGHER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22062 UP 2146 OR 11 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 24 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 15252 DOWN 320 OR 21 WITH HOMESTAKE MINING OF THE US SLIDING 7 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 48985 POINTS WEDNESDAY SPUTTERED 24642 TO 1889179 AFTER RETREATING FROM THE DAY'S HIGHS WHEN THE BIG DROPS RECORDED EARLIER THIS WEEK HAD BEEN TEMPORARILY REGAINED IN TRADING FRIDAY THE NIKKEI EASED 2220 POINTS TO CLOSE THE MORNING SESSION AT 1886959 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 430 MILLION SHARES UP FROM 3967 MILLION SHARES A DAY EARLIER DECLINERS OUTNUMBERED GAINERS 674355 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH JUMPED 3094 POINTS WEDNESDAY FELL 1382 TO 153650 INVESTORS FRETTED ABOUT SIGNS THE JAPANESE GOVERNMENT MAY FACE DIFFICULTY IN GETTING A POLITICAL REFORM BILL PASSED NEWS REPORTS AT MIDDAY INDICATED THE GOVERNMENT AND THE OPPOSITION LIBERAL DEMOCRATIC PARTY CONTINUED TO DISAGREE ON DETAILS OF A COMPROMISE THE WORK HAD BEGUN THE PREVIOUS DAY BY A JOINT COMMITTEE OF THE DIET OR PARLIAMENT AND THE MARKET'S NERVOUSNESS ABOUT THE POLITICIANS' PROGRESS LED TO AN AFTERNOON SELLOFF OF SHARES PACED BY INSTITUTIONS FOLLOWING TWO DAYS OF RUMORDRIVEN GAINS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 88 POINTS TO 34273 THE FT 30STOCK INDEX FELL 139 POINTS TO 26273 VOLUME WAS 9726 MILLION SHARES UP FROM 8293 MILLION SHARES A DAY EARLIER LITTLE NEWS SURFACED TO GIVE INVESTORS A TRADING THEME AND PRICES OF MANY ISSUES MOVED AIMLESSLY MOST FUND MANAGERS WERE MARKING TIME UNTIL BRITISH CORPORATIONS BEGIN REPORTING THEIR FINANCIAL RESULTS NEXT MONTH RETAILING STOCKS WERE HIT HARD YESTERDAY ON DISAPPOINTING SALES REPORTS FOOD MAKERS FACED THE SAME FATE ON FLAT SALES INDICATIONS WHILE MANY FINANCIAL AND BANKING STOCKS FELL AS INVESTORS SWITCHED TO ISSUES THAT ARE CONSIDERED TO OFFER BETTER VALUE IN FRANKFURT STOCK PRICES CLOSED MOSTLY HIGHER AFTER A PATCHY SESSION THE DAX 30STOCK INDEX ADDED 597 POINTS TO 212514 POINTS TAKING THIS WEEK'S GAIN TO 24 THOUGH THE FINISH WAS NEAR THE SESSION LOW OF THE DAX ISSUES ADVANCERS LED DECLINERS ONLY 1712 THE MARKET GOT QUIETER AFTER SHARP VOLATILITY EARLIER IN THE WEEK THE EQUITIES MARKET HAS BEEN MOVING IN TANDEM WITH GERMANY'S BOND MARKET RECENTLY WHICH WAS SOMEWHAT FIRMER YESTERDAY IN PARIS PRICES EASED ON DISAPPOINTMENT ABOUT FRENCH MONETARY POLICY STOCKS OPENED HIGHER HELPED BY SPECULATIVE BUYING ON A LONGSHOT BET THAT FRANCE'S CENTRAL BANK MIGHT TRIM INTEREST RATES PRIOR TO ANY REDUCTION BY GERMANY'S CENTRAL BANK BUT WHEN THE BANK OF FRANCE LEFT ITS RATES UNCHANGED PARIS STOCKS FOLLOWED THE FRENCH BOND MARKET BACK DOWN IN MILAN SHARES CLIMBED ACROSS THE BOARD AS INVESTORS PICKED UP ISSUES LEFT BEHIND IN THIS WEEK'S RALLY SUCH AS INSURERS WHICH HAD BEEN ABANDONED IN FAVOR OF CYCLICAL ISSUES TELECOMMUNICATIONS AND CEMENT STOCKS ALSO PERFORMED WELL IN MADRID PRICES ENDED NARROWLY HIGHER AFTER FALLING FROM HIGHER LEVELS ON FUTURESRELATED TRADING AND A SLIGHT TECHNICAL CORRECTION FROM THIS YEAR'S SHARP GAINS IN STOCKHOLM EQUITIES ROSE SOLIDLY AND BROADLY AS POSITIVE CORPORATE NEWS AND RUMORS ABOUT EARNINGS AND ORDERS BOOSTED BLUE CHIPS IN ZURICH EQUITIES FINISHED MIXED TO SLIGHTLY HIGHER AFTER GIVING UP GAINS AS INVESTORS TOOK PROFITS LATE IN THE DAY THE SELLOFF MAY HAVE STEMMED FROM SAGGING HOPES FOR QUICK REDUCTIONS IN EUROPEAN INTEREST RATES BUT IT WAS ALSO VIEWED POSITIVELY AS CONTAINING THE SWISS MARKET FROM OVERHEATING IN BRUSSELS STOCKS FIRMED TAKING THE BENCHMARK INDEX UP TO A RECORD PASSING THE MARK SET JAN 19 THE BIGGEST PRICE SWINGS WERE IN SMALLER STOCKS WHILE BLUE CHIPS WERE LITTLE CHANGED IN HEAVY TURNOVER THE MARKET SHRUGGED OFF POOR CORPORATE EARNINGS NEWS IN MEXICO CITY EQUITIES CHALKED UP THEIR SECOND RECORD HIGH THIS WEEK CLIMBING 2 AS FOREIGN INVESTORS FOCUSED ON BUYING IN THE TELECOMMUNICATIONS SECTOR WHICH IS EXPECTED TO EXPAND RAPIDLY IN SYDNEY SHARE PRICES SURGED 13 BUOYED BY A FIRMER GOLD PRICE LOWERTHANEXPECTED AUSTRALIAN INFLATION DATA AND SOME FOREIGN BUYING MANY LARGE STOCKS WHICH HAD FALLEN THIS WEEK BECAUSE OF NERVOUSNESS ABOUT TOKYO'S BIG DROPS REBOUNDED AND HELPED PUSH THE BROAD MARKET UP IN HONG KONG STOCKS CLIMBED 21 IN A STRONG TECHNICAL REBOUND AMID MODERATE TURNOVER FOLLOWING TWO SESSIONS OF LOSSES THAT HAD TAKEN THE MAIN INDEX DOWN 31 IN SINGAPORE EQUITIES EXTENDED THE PREVIOUS SESSION'S LATE RECOVERY RISING STEADILY TO CLOSE 14 HIGHER SENTIMENT WAS BOOSTED BY A RECOVERY IN MALAYSIAN OVERTHECOUNTER SHARES WHICH HAD WEAKENED SHARPLY AND PULLED THE SINGAPORE BOURSE DOWN WITH THEM AND IN KUALA LUMPUR SHARES ALSO EXTENDED WEDNESDAY'S BRISK REBOUND IN ACTIVE TRADING SOARING 44 AS BARGAINHUNTING SPREAD AND BLUE CHIPS WON SUPPORT IN TAIPEI SHARES RALLIED 3 DOWN EVEN SO FROM THE DAY'S HIGHS THE STRONG SHOWING WAS LARGELY A TECHNICAL REBOUND AS MANY INVESTORS REAPPEARED AFTER BEING SIDELINED FOR SEVERAL DAYS BY LIQUIDITY WORRIES CONFIDENCE WAS BOOSTED BY NEWS THAT THE TAIWAN GOVERNMENT MIGHT INCREASE TO 20 BILLION FROM 5 BILLION THE CEILING ON FOREIGN INVESTMENT FUNDS ALLOWED TO ENTER THE COUNTRY AND BY ENTHUSIASM ABOUT TOMORROW'S LOCAL ELECTIONS IN SEOUL STOCKS CLIMBED 15 AS SENTIMENT WAS BUOYED BY NEWS REPORTS THAT THE SOUTH KOREAN FINANCE MINISTRY WON'T INITIATE STABILIZING MEASURES TO COOL THE MARKET THOUGH INSTITUTIONS MADE LATE SALES RUMORED TO BE URGED BY THE GOVERNMENT IN BANGKOK AFTER CHOPPY DEALINGS THE MARKET FINISHED WITH A 27 GAIN IN WELLINGTON PRICES GAINED 11 IN QUIET TRADING WITH INVESTORS RELUCTANT TO SELL HOLDINGS WHILE THE MARKET CONTINUES ITS BULL RUN 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 9401280142 940128 HEALTH OREGON'S NEW HEALTH RATIONING MEANS MORE CARE FOR SOME BUT LESS FOR OTHERS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN OREGON DOCTORS LEIGH DOLIN AND RICK WOPAT GO TO WORK NEXT WEEK IT WON'T BE HEALTH CARE AS USUAL FOR THEM OR FOR THEIR PATIENTS AFTER YEARS OF STATEWIDE DEBATE AND FEDERAL SCRUTINY OREGON WILL ON FEB 1 LAUNCH A RADICAL REDESIGN OF ITS FEDERALLY FUNDED MEDICAID PROGRAM IN THE NATION'S MOST SERIOUS ATTEMPT AT HEALTHCARE RATIONING OREGON'S NEW HEALTH PLAN WILL EXTEND MEDICAID COVERAGE TO MANY WORKING POOR PEOPLE WHO HAVE UNTIL NOW BEEN UNINSURED IT WILL ALSO PHASE CURRENT MEDICAID RECIPIENTS INTO COSTCONSCIOUS MANAGEDCARE PLANS MOST RADICALLY OREGON WILL LIMIT ITS COVERAGE TO A PRIORITY LIST OF 606 MEDICAL PROCEDURES STRESSING PREVENTION AND BASIC CARE AND TRIMMING WHAT THE STATE DEEMS UNNECESSARY OR FUTILE FROM COSMETIC SURGERY TO HEROIC MEASURES FOR THE TERMINALLY ILL MANY DOCTORS AND ADMINISTRATORS ARE PREPARED FOR WIDESPREAD CONFUSION TUESDAY AS SEVERAL HUNDRED THOUSAND OREGONIANS CONVERT TO THE NEW SYSTEM IT WILL BE CHAOS SAYS MARY LOU HENNRICH ADMINISTRATOR FOR CAREOREGON A HEALTHCARE ARM OF MULTNOMAH COUNTY GOVERNMENT WE HAVE ONE NOSTRIL ABOVE THE WATER DR DOLIN A PORTLANDBASED INTERNIST AND PRESIDENTELECT OF THE ORGEON MEDICAL ASSOCIATION BELIEVES THAT ONCE PEOPLE GET THE HANG OF IT THEY'LL HAVE MUCH BETTER CARE THAN BEFORE BUT HE ADDS WE'RE GOING TO HAVE TO SPEND SOME TIME EDUCATING THE PATIENTS OREGON WAS RIPE FOR A NEW HEALTHCARE SYSTEM MANY OF THE STATE'S 3 MILLION RESIDENTS DEPEND ON CYCLICAL INDUSTRIES SUCH AS TIMBER AND AGRICULTURE AND FAR TOO MANY OREGONIANS FELL THROUGH THE CRACKS IN THE HEALTHCARE SYSTEM IN 1992 ABOUT 479000 PEOPLE OR 161 OF OREGON'S POPULATION WERE UNINSURED WELL ABOVE THE NATIONAL AVERAGE OF 139 NOW ABOUT 120000 OF UNINSURED OREGONIANS WHO LIVE AT THE POVERTY LEVEL WILL BECOME NEWLY ELIGIBLE FOR MEDICAID IN ADDITION ABOUT 180000 OF THE 250000 PEOPLE ALREADY ENROLLED IN MEDICAID WILL BE EMBRACED BY THE NEW PLAN THE REMAINDER OF OREGON'S POOR AND UNINSURED WILL BE PHASED IN OVER THE NEXT FIVE YEARS ELDERLY AND DISABLED PEOPLE AND CHILDREN IN FOSTER CARE ARE SCHEDULED TO ENTER THE PLAN IN 1995 AN ADDITIONAL 300000 OF THE WORKING POOR ARE SCHEDULED TO ENTER THE PLAN IN 1997 AND 1998 WHEN AN EMPLOYERBASED COVERAGE LAW KICKS IN DESPITE OREGON'S FISCAL WOES IT EXPECTS A 1 BILLION BUDGET SHORTFALL IN 199597 THE STATE WAS ABLE TO FUND THE EXPANSION OF ITS MEDICAID ROLLS AND ENHANCE SERVICES LIKE ADULT DENTAL CARE BY IMPOSING CIGARETTE TAXES OF 10 CENTS A PACK IN RECENT MONTHS THE MOST EXCITING THING SAYS JEAN THORNE HEAD OF OREGON MEDICAID IS THAT WE'LL NEWLY ENTITLE 120000 PEOPLE WHO HAVEN'T HAD CARE ALSO SHE EXPECTS NEW MONTHLY CAPITATION FEES WHERE DOCTORS RECEIVE PAYMENT PER PATIENT INSTEAD OF FOR SPECIFIC SERVICES WILL OFFER STRIKING IMPROVEMENTS ON THE OLD MEDICAID REIMBURSEMENT RATES UNDER WHICH DOCTORS OFTEN COMPLAINED THEY LOST MONEY CARING FOR THE POOR OREGON'S INSISTENCE ON MANAGED CARE MEANS A PRIMARYCARE DOCTOR WILL COORDINATE CARE AND KEEP PATIENTS FROM FALLING INTO EXPENSIVE AND INEFFICIENT EMERGENCY ROOMS AS THEIR PROVIDEROFLASTRESORT PEOPLE NOW WAIT UNTIL THEY HAVE AN EARACHE AND THEN GO TO THE ER GROUSES DR DOLIN BUT UNDER THE OREGON PLAN HE EXPECTS TO DELIVER TRUE PREVENTIVE CARE AT RATES THAT COVER HIS COSTS THE QUALITY OF CARE WILL BE BETTER AND WE'LL BE ABLE NOT TO LOSE MONEY EVERY TIME WE SEE ONE OF THESE PATIENTS HE SAYS STILL THE PLAN'S DESIGNERS FACED HARD CHOICES AND IMPOSED STRICT SOMETIMES SEVERE LIMITS ON WHAT CARE CAN BE FUNDED BY THE PUBLIC PURSE THOUGH THE PLAN PAYS FOR MANY LIFESAVING TREATMENTS LIVER OR KIDNEY TRANSPLANTS FOR PEOPLE WITH CIRRHOSIS OR RENAL FAILURE FOR EXAMPLE IT DRAWS A LINE WHERE THE DATA DON'T PROMISE A CURE AMONG ROUTINE PROCEDURES NO LONGER COVERED ARE TREATMENT FOR MANY BENIGN OR SELFLIMITED ILLNESSES COMMON COLDS SIMPLE SPRAINS AND BASIC FOOD POISONING NONESSENTIAL OR CONTROVERSIAL SURGERY IS ALSO OUT CIRCUMCISION OF NEWBORNS OR GASTRIC BYPASS OPERATIONS FOR THE OBESE BOTH FORMERLY COVERED SOMEBODY WHO THINKS THEIR NOSE IS TOO BIG WON'T BE COVERED SAYS DR DOLIN MORE IMPORTANT NEITHER WILL A POOR WOMAN WHO SEEKS RECONSTRUCTIVE BREAST SURGERY AFTER MASTECTOMY THE AFFLUENT OF COURSE CAN CONTINUE TO PURCHASE SUCH SERVICES IN OREGON AS ELSEWHERE MOST WRENCHING OF THESE LIMITS IS THE LACK OF COVERAGE FOR CURATIVE TREATMENTS FOR PEOPLE WITH TERMINAL ILLNESSES SUCH AS ENDSTAGE CANCER OR AIDS INSTEAD THE STATE EMPHASIZES EARLY DIAGNOSIS AND TREATMENT AT THE BEGINNING OF SERIOUS ILLNESS MEDICAL TREATMENTS AS LONG AS THEY CAN PROLONG LIFE AND COMFORT CARE INCLUDING PAIN MEDICATION AND HOSPICE SERVICES WHEN THE ODDS OF CURE FALL BELOW 5 THAT'S THE MOST IMPOSSIBLE ISSUE TO DEAL WITH CONCEDES DR DOLIN DOCTORS AND INSURANCE PLANS CAN'T SOLVE THAT PROBLEM SOCIETY NEEDS TO SAY EVERYBODY CAN'T HAVE EVERYTHING THEY WANT AT THE END OF LIFE GROUPS LIKE THE AMERICAN CANCER SOCIETY TENTATIVELY APPLAUD THE PLAN FOR ITS COVERAGE OF EARLY DIAGNOSTIC PROCEDURES LIKE MAMMOGRAPHY WE'RE RATHER PLEASED SAYS A SPOKESWOMAN STILL THOSE PROVIDERS AND PATIENTS WHO WANT TO FIGHT TO THE BITTER END ARE GOING TO HAVE A BATTLE UNDER THE NEW SYSTEM DR WOPAT A PHYSICIAN IN THE RURAL LOGGING TOWN OF LEBANON WAS ONE OF THE DRAFTERS OF THE LIST OF COVERED PROCEDURES HE SAYS THERE IS ONLY ENOUGH MONEY TO PAY FOR WHAT MEDICINE KNOWS WILL WORK NOT ENOUGH TO FINANCE COSTLY EXPERIMENTS WITH LITTLE CHANCE OF SUCCESS THE STATE SHOULDN'T SPEND ITS RESOURCES ON THINGS NOT CLEARLY SHOWN TO BE EFFECTIVE HE SAYS MORE TYPICAL OF TRADEOFFS REQUIRED UNDER THE OREGON PLAN HE SAYS WAS THE CASE OF A 20YEAROLD WOMAN WHO WALKED INTO HIS OFFICE THIS MONTH SHE SOUGHT A ROUTINE PHYSICAL AND PELVIC EXAM SHE ALSO ASKED HIM TO REMOVE SOME MOLES FROM HER NECK A BENIGN COSMETIC PROCEDURE FORMERLY COVERED BY MEDICAID BUT WHEN SHE OPENED HER MOUTH THE PATIENT REVEALED A COMMON AILMENT OF THE RURAL POOR DECAYING TEETH HAVE YOU CONSIDERED HAVING THESE TEETH REPAIRED DR WOPAT ASKED I'D LOVE TO BUT MEDICAID WON'T COVER THEM SHE SAID HE INFORMED HER THAT AFTER TUESDAY HE WON'T BE ABLE TO PERFORM COSMETIC MOLE REMOVAL BUT HER DENTAL CARE WILL BE COVERED HE ADDED WITH THE MONEY WE SAVE BY NOT REMOVING YOUR MOLES THE DOCTOR SAID WE CAN PAY FOR YOUR TEETH 9401280141 940128 WHAT'S NEWS WORLDWIDE RENO'S TOP AIDE RESIGNED FROM HIS POST AT THE JUSTICE DEPARTMENT THE DEPARTMENT'S NO 2 OFFICIAL PHILIP HEYMANN QUIT A MOVE THAT BOTH HE AND ATTORNEY GENERAL RENO ATTRIBUTED TO A LACK OF PERSONAL CHEMISTRY AND CLASHING OPERATIONAL AND MANAGEMENT STYLES HEYMANN A VETERAN OF FOUR ADMINISTRATIONS AND A HARVARD LAW PROFESSOR SAID HE WOULD STAY ON UNTIL A SUCCESSOR IS SELECTED RENO DISPUTED ANY NOTION OF DISARRAY AT THE DEPARTMENT WHICH HAS SUFFERED HIGHLEVEL PERSONNEL PROBLEMS THE MOVE WHICH WAS SAID TO HAVE TAKEN PRESIDENT CLINTON BY SURPRISE FOLLOWS THE RECENT DEPARTURES OF HIGHLEVEL OFFICIALS AT BOTH THE DEFENSE AND STATE DEPARTMENTS THOUSANDS OF QUAKE VICTIMS LINED UP FOR EMERGENCY FOOD STAMPS IN LOS ANGELES IN SCENES REMINISCENT OF THE GREAT DEPRESSION THE LONG SHUFFLING LINES OF BEDRAGGLED PEOPLE WERE MONITORED BY HUNDREDS OF POLICE A DAY BEFORE PUSHING AND SHOVING BROKE OUT WHEN THOSE SEEKING HELP BECAME FRUSTRATED AND ANGRY SERB GUNNERS FOCUSED THEIR FIRE ALONG THE NORTHERN FRONT LINES OF SARAJEVO AND SERB FORCES REPORTEDLY WERE ATTACKING TROOPS OF THE MUSLIMLED GOVERNMENT IN THE NORTHERN BOSNIAN TOWNS OF MAGLAJ AND TESANJ THE UN MEANWHILE CLOSED A KEY ROUTE IN CENTRAL BOSNIA AFTER CROWDS PLUNDERED FOOD CONVOYS AND ASSAULTED ARMED ESCORTS SECRETARY OF STATE CHRISTOPHER APPEALED TO FRANCE FOR AN END TO BICKERING OVER BOSNIA AND URGED US ALLIES TO PREPARE FOR NATO MILITARY ACTION AGAINST THE SERBS TO RELIEVE TWO ENCIRCLED TOWNS TUZLA AND SREBRENICA BUT HE RULED OUT USING US GROUND FORCES TO PRESSURE THE BOSNIAN GOVERNMENT TO ACCEPT A PEACE SETTLEMENT THE SENATE VOTED TO URGE CLINTON TO END A US EMBARGO AGAINST THE HANOI GOVERNMENT THE 6238 BIPARTISAN ROLL CALL INCREASED THE LIKELIHOOD THAT THE PRESIDENT WILL ACT SOON TO LIFT THE RESTRICTIONS IMPOSED ON VIETNAM AFTER THE 1975 FALL OF SAIGON TO COMMUNIST FORCES CLINTON HAS RELAXED THE EMBARGO TWICE YELTSIN'S OFFICE ISSUED A STATEMENT TELLING RUSSIANS HE WILL STAND FIRM IN THE DEFENSE OF REFORMS DESPITE A CABINET SHAKEUP THAT REMOVED KEY REFORMERS IT WAS THE FIRST PUBLIC COMMENT FROM THE PRESIDENT ON THE CABINET CRISIS AND CAME A DAY AFTER REFORMER FYODOROV QUIT AS FINANCE MINISTER WARNING OF ECONOMIC CHAOS AND SOCIAL UNREST THE THREE BALTIC STATES WERE ACCUSED OF SEEKING A CONFRONTATION WITH RUSSIA AND TOLD THEY WOULD HAVE TO COOPERATE WITH MOSCOW TO SOLVE THEIR PROBLEMS RUSSIA'S DEPUTY FOREIGN MINISTER CHURKIN FURTHER ALLEGED THAT THE EXSOVIET REPUBLICS LATVIA LITHUANIA AND ESTONIA ARE VIOLATING THE RIGHTS OF THEIR ETHNIC RUSSIAN MINORITIES HOSOKAWA MADE A DIRECT LASTDITCH APPEAL TO THE JAPANESE ELECTORATE TO LOBBY BALKING LEGISLATORS IN ORDER TO REVIVE HIS TROUBLED POLITICAL REFORM BILLS BEFORE A DEADLINE TOMORROW THE PRIME MINISTER ALSO HINTED THAT HE WOULD STEP DOWN FROM HIS POST IF THE REFORM MEASURES FAIL TO WIN PARLIAMENTARY APPROVAL OLIVER NORTH FORMALLY LAUNCHED HIS BID FOR THE GOP NOMINATION TO CHALLENGE VIRGINIA'S INCUMBENT DEMOCRATIC SEN CHARLES ROBB NORTH A FORMER NATIONAL SECURITY AIDE TO REAGAN WHO PLAYED A KEY ROLE IN THE IRANCONTRA AFFAIR SAID HE IS A CONSERVATIVE OUTSIDER WHO WILL STRIKE A BLOW TO GIVE GOVERNMENT BACK TO THE PEOPLE FIGURE SKATER TONYA HARDING ADMITTED SHE FAILED TO IMMEDIATELY TELL AUTHORITIES WHAT SHE KNEW ABOUT THE JAN 6 ATTACK ON SKATING RIVAL NANCY KERRIGAN IN DETROIT BUT DENIED ANY PRIOR KNOWLEDGE OF THE ASSAULT HARDING WHO HASN'T BEEN CHARGED SAID SHE WANTED TO REMAIN ON THE US OLYMPIC TEAM AND COMPETE IN NORWAY NEXT MONTH FIREARMS COULD BECOME THE LEADING CAUSE OF INJURYRELATED DEATHS IN THE US WITHIN THE NEXT TWO TO THREE YEARS ACCORDING TO CURRENT NATIONWIDE TRENDS FROM 1985 THROUGH 1991 THE DEATH RATE FROM MOTORVEHICLE ACCIDENTS NOW THE LEADING CAUSE FELL 10 WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED 14 THE MEXICAN GOVERNMENT SIGNED AN ACCORD WITH NINE POLITICAL PARTIES CALLING FOR SWEEPING ELECTORAL REFORMS IN AN ATTEMPT TO END A REBEL UPRISING IN THE SOUTHERN STATE OF CHIAPAS THE REBELS REPORTEDLY HAVE SEIZED CONTROL OF A HUGE AREA OF JUNGLE AND MOUNTAIN TERRITORY IN CHIAPAS FORCING LANDOWNERS AND PEASANT FAMILIES TO FLEE 9401280140 940128 FINANCING BUSINESS STEWART ENTERPRISES INC STEWART ENTERPRISES INC SAID IT COMPLETED AN OFFERING OF 2705000 COMMON SHARES ON MONDAY AN ADDITIONAL 400000 SHARES WERE SOLD BY A MAJOR SHAREHOLDER THE OPERATOR OF FUNERAL HOMES AND CEMETERIES SAID IN NEW ORLEANS AFTER THE OFFERING THE COMPANY HAS 218 MILLION COMMON SHARES OUTSTANDING STEWART SAID THE OFFERING GENERATED ABOUT 65 MILLION IN PROCEEDS AND THAT IT WOULD USE THE FUNDS FOR ACQUISITIONS BEAR STEARNS & CO WAS THE MANAGING UNDERWRITER 9401280139 940128 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 7/8 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 94 DAYS 310 95 TO 149 DAYS 312 150 TO 179 DAYS 320 180 TO 249 DAYS 330 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 312 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 269 SIX MONTHS 305 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 307 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 301 60 DAYS 302 90 DAYS 305 120 DAYS 309 150 DAYS 314 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 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 550 GERMANY 591 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 24 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 674 60 DAYS 682 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 682 60 DAYS 692 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401280138 940128 MCDONALD'S NET ROSE 16 IN PERIOD TOPPED 1 BILLION FOR YEAR OAK BROOK ILL MCDONALD'S CORP CITING STEADY GROWTH AND RAPID EXPANSION OF ITS WORLDWIDE BUSINESS REPORTED THAT ANNUAL NET EARNINGS EXCEEDED 1 BILLION FOR THE FIRST TIME THE FASTFOOD CHAIN SAID FOURTHQUARTER EARNINGS ROSE 16 TO 2645 MILLION OR 72 CENTS A SHARE FROM 2279 MILLION OR 61 CENTS A YEAR AGO IN THE LATEST PERIOD THERE WERE 107 MILLION OR 29 FEWER SHARES OUTSTANDING FOR THE FULL YEAR NET INCOME ROSE 13 TO 108 BILLION OR 291 A SHARE FROM 9586 MILLION OR 260 A SHARE REVENUE FOR THE QUARTER WHICH INCLUDE SALES AT COMPANYOWNED RESTAURANTS AND FRANCHISE REVENUE ROSE 6 TO 193 BILLION FROM 183 BILLION SYSTEMWIDE SALES WHICH INCLUDE THOSE AT FRANCHISED STORES GREW 8 TO 615 BILLION FROM 571 BILLION FOR THE FULL YEAR REVENUE TOTALED 74 BILLION UP 4 FROM 713 BILLION WHILE SYSTEMWIDE SALES REACHED 235 BILLION AN 8 INCREASE FROM 218 BILLION IN 1992 OVERSEAS OPERATIONS CONTRIBUTED NEARLY 40 OF SYSTEMWIDE SALES LAST YEAR ALTHOUGH JAPAN MCDONALD'S BIGGEST OVERSEAS MARKET CONTINUED TO BE HAMPERED BY A WEAK ECONOMY TOTAL OPERATING PROFIT OUTSIDE THE US ROSE 9 DURING ALL OF 1993 AND 10 IN THE LATEST QUARTER REFLECTING WHAT THE COMPANY SAID WAS EXPANSION AND HIGHER OPERATING MARGINS PARTLY OFFSET BY WEAKER FOREIGN CURRENCIES DURING 1993 MCDONALD'S ADDED 900 RESTAURANTS WORLDWIDE 576 OUTSIDE THE US AND 225 MORE THAN DURING THE PREVIOUS YEAR THE COMPANY HAS NEARLY 14000 RESTAURANTS IN ALL 9401280137 940128 ECONOMY WHITE HOUSE SEEKS TO ABOLISH JOBS TAX CREDIT CLINTON ALSO MULLS CHANGES TO EMERGENCY BENEFITS LABOR SECRETARY SAYS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SEEKING TO KILL THE TARGETED JOBS TAX CREDIT A ROUGHLY 273 MILLION ANNUAL TAX BREAK USED LARGELY BY THE RETAILING AND HOTEL INDUSTRIES THE WHITE HOUSE ALSO IS CONSIDERING REPLACING THE FEDERAL EMERGENCY UNEMPLOYMENTBENEFITS PROGRAM WHICH EXPIRES FEB 5 WITH A PLAN THAT WOULD REQUIRE A SUBSTANTIAL STATE ROLE THE CHANGES WILL BE PROPOSED IN PRESIDENT CLINTON'S BUDGET EARLY NEXT MONTH CERTAIN KINDS OF ANSWERS MAY NOT WORK FOR GETTING THE UNEMPLOYED BACK TO WORK LABOR SECRETARY ROBERT REICH TOLD THE CENTER FOR NATIONAL POLICY A WASHINGTON THINK TANK WE NEED TO TURN OUR RESOURCES ELSEWHERE MR REICH LAID OUT HIS VISION FOR PROGRAMS THAT DO WORK HE LAUDED THE JOB CORPS WHICH PROVIDES LONGTERM TRAINING IN A BOOTCAMP ENVIRONMENT FOR INNERCITY YOUTH HE ALSO SAID EXTRA SCHOOLING BEYOND HIGH SCHOOL AND ALLOWING ENTREPRENEURIALMINDED UNEMPLOYED WORKERS TO USE BENEFITS TO START BUSINESSES ARE BENEFICIAL THE WHITE HOUSE IS LIKELY TO SEEK NEW EMPHASIS FOR THOSE TYPES OF PROGRAMS IN THE BUDGET ONE PROGRAM THAT DOESN'T WORK MR REICH ARGUED IS THE JOBSTAX CREDIT WHICH IN THE PAST DECADE HAS GIVEN EMPLOYERS 45 BILLION IN TAX BREAKS FOR HIRING CERTAIN GROUPS OF DISADVANTAGED WORKERS UNDER THE PROGRAM COMPANIES THAT HIRE WORKERS MOSTLY INNERCITY YOUTH FOR 90 CALENDAR DAYS OR 120 WORK HOURS CAN GET A BREAK OF AS MUCH AS 2400 A WORKER SEVERAL GOVERNMENT AND PRIVATE STUDIES HAVE CONCLUDED THAT THE PROGRAM DOESN'T HELP ANYONE EXCEPT THE EMPLOYERS WHO GARNER THE TAX CREDITS THE GENERAL ACCOUNTING OFFICE THE RESEARCH ARM OF CONGRESS CONCLUDED TWO YEARS AGO THAT THERE WERE NO SUBSTANTIAL DIFFERENCES BETWEEN THE EARNINGS OF PEOPLE HIRED BY COMPANIES CLAIMING THE TAX BREAK AND OTHER SIMILAR WORKERS AND THE LABOR DEPARTMENT'S INSPECTOR GENERAL LAST YEAR CONCLUDED THAT MOST OF THE WORKERS WOULD HAVE BEEN HIRED EVEN WITHOUT THE TAX CREDIT BUT MARK GORMAN SENIOR DIRECTOR FOR GOVERNMENT AFFAIRS AT THE NATIONAL RESTAURANT ASSOCIATION IN WASHINGTON COUNTERED THAT THE PROGRAM DOES WHAT IT WAS SET UP TO DO NOBODY IS MAKING THE CASE IT CREATES A LOT OF NEW JOBS HE SAID BUT THERE'S NO DOUBT IT ENCOURAGES COMPANIES TO GIVE PREFERENCES TO ECONOMICALLY DISADVANTAGED PEOPLE THAT THEY MIGHT NOT OTHERWISE MANY OF THE ASSOCIATION'S MEMBERS FROM MCDONALD'S FRANCHISES TO RED LOBSTER USE THE PROGRAM MR GORMAN SAID THE ADMINISTRATION IS STILL TRYING TO DECIDE WHAT TO DO ABOUT FEDERAL UNEMPLOYMENT BENEFITS THERE APPEARS TO BE MINIMAL APPETITE ON CAPITOL HILL TO RESURRECT THE EMERGENCY PROGRAM WHICH STARTED IN NOVEMBER 1991 AND HAS PAID OUT ABOUT 25 BILLION IN AID THE PROGRAM PROVIDES AS MANY AS 26 WEEKS OF ADDITIONAL BENEFITS FOR WORKERS WHO HAVE EXHAUSTED REGULAR STATE BENEFITS BUT THE NATIONAL UNEMPLOYMENT RATE DECLINED TO 64 LAST MONTH IT WAS 69 WHEN THE FEDERAL UNEMPLOYMENTBENEFITS PROGRAM BEGAN IN 1991 AND SUBSEQUENTLY ROSE TO 77 BEFORE COMING BACK DOWN MR REICH SAID HE IS CONSIDERING SEEKING AN EXTENDED UNEMPLOYMENT INSURANCE PROGRAM IN WHICH COSTS WOULD BE SPLIT EQUALLY BY THE FEDERAL GOVERNMENT AND THE STATES A SIMILAR 5050 PROGRAM IS IN PLACE NOW BUT HAS BEEN VIRTUALLY UNUSED BY THE STATES ROBERT MCGLOTTEN AFLCIO LEGISLATIVE DIRECTOR SAID IT WOULD BE A MISTAKE TO ASK STATES TO KICK IN MORE MONEY HE URGED THE ADMINISTRATION TO SEE UNEMPLOYED WORKERS AS A CRISIS IT IS EXPENSIVE NO DOUBT HE SAID BUT SO IS SUPPLEMENTAL EARTHQUAKE ASSISTANCE IT'S ALSO A NATURAL DISASTER FOR PEOPLE WHO HAVE LOST THEIR JOBS 9401280136 940128 AUTHENTIC FITNESS CREDIT FACILITY VAN NUYS CALIF AUTHENTIC FITNESS CORP SAID IT PLANS TO REDUCE ITS ANNUAL INTEREST EXPENSE BY 800000 OR FIVE CENTS A SHARE BY REFINANCING A 100 MILLION CREDIT FACILITY WITH A NEW 100 MILLION CREDIT FACILITY THE SPORTSWEAR MAKER SAID THE NEW LOAN WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE LONDON INTERBANK OFFERED RATE OR LIBOR PLUS 1 REDUCED FROM LIBOR PLUS 275 ON ITS CURRENT LOAN 9401280135 940128 MARKETING & MEDIA DOW JONES BUYS STAKE IN NEWS ORGANIZATION LOCATED IN GERMANY NEW YORK DOW JONES & CO SAID IT ACQUIRED A ONETHIRD INTEREST IN VWD VEREINIGTE WIRTSCHAFTSDIENSTE GMBH A GERMAN NEWS AGENCY SPECIALIZING IN BUSINESS AND ECONOMIC NEWS AND INFORMATION ALSO ACQUIRING ONETHIRD INTERESTS WERE GERMAN PUBLISHERS FRANKFURTER ALLGEMEINE ZEITUNG GMBH AND VERLAGSGRUPPE HANDELSBLATT GMBH TERMS WEREN'T DISCLOSED THE PREVIOUS OWNERS WERE DEUTSCHE PRESSEAGENTUR GMBH GERMANY'S LARGEST NEWS AGENCY AND TWO HOLDING COMPANIES REPRESENTING A NUMBER OF GERMAN TRADE ASSOCIATIONS AND NEWSPAPERS VWD IS BASED IN THE FRANKFURT SUBURB OF ESCHBORN GERMANY DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9401280134 940128 COASTAL HEALTHCARE ACQUISITIONS DURHAM NC COASTAL HEALTHCARE GROUP INC SAID IT PLANS TO ACQUIRE HEALTH MANAGEMENT ASSOCIATES OF AMERICA INC AND MEDICAL MANAGEMENT ASSOCIATES INC TWO PRIMARYCARE NETWORKS BASED IN BOCA RATON FLA COASTAL WHICH PROVIDES HEALTHCARE SERVICES TO HOSPITALS AND OTHER MEDICAL PROVIDERS SAID THE ACQUISITIONS WOULD BE MADE THROUGH A STOCK SWAP BUT DIDN'T DISCLOSE THE TERMS THE TWO NETWORKS OWN OR MANAGE A TOTAL OF 17 FACILITIES IN FOUR FLORIDA COUNTIES AND HAD COMBINED 1993 REVENUE OF ABOUT 100 MILLION 9401280133 940128 REVIEW OF ACCIDENTS FINDS NO ADVANTAGE IN ANTILOCK BRAKES DETROIT MOTORISTS WHO HAVE PAID FOR ANTILOCK BRAKES AREN'T HAVING ANY BETTER LUCK AVOIDING ACCIDENTS THAN THOSE WHOSE CARS LACK THE TECHNOLOGY ACCORDING TO A NEW STUDY THE STUDY BY THE HIGHWAY LOSS DATA INSTITUTE CONCLUDED THAT CAR COMPANIES MAY BE OVERSELLING THE ADVANTAGES OF ANTILOCK BRAKES FOR INSTANCE MANY ADVERTISEMENTS FOR THE MECHANISM DON'T MAKE CLEAR THAT THEIR PRIMARY ADVANTAGE IS ON WET AND SLIPPERY ROADS HLDI PRESIDENT BRIAN O'NEILL SAID IN A STATEMENT THE INSTITUTE'S STUDY COMPARED INSURANCE LOSSES FOR CARS WITH ANTILOCK BRAKES AND LOSSES FOR THE SAME CARS WITHOUT ANTILOCK BRAKES WE FIND NO REDUCTION IN CLAIM FREQUENCIES OR AVERAGE AMOUNTS OF INSURANCE PAYMENTS UNDER EITHER COLLISION OR PROPERTYDAMAGE LIABILITY COVERAGES SAID KIM L HAZELBAKER SENIOR VICE PRESIDENT OF THE INSTITUTE FOR EXAMPLE THE HLDI FOUND THAT OVERALL INSURANCE LOSSES FOR 1992 CHEVROLET CAVALIERS EQUIPPED WITH ANTILOCK BRAKES WERE HIGHER THAN OVERALL LOSSES FOR 1991 MODELS WITHOUT ANTILOCK BRAKES THE NONPROFIT INSURANCE GROUP SAID THERE'S NOTHING WRONG WITH THE BRAKES THEMSELVES WHICH PREVENT WHEELS FROM LOCKING DURING EMERGENCY BRAKING RATHER MANY MOTORISTS DON'T USE THE ANTILOCK BRAKES PROPERLY MR O'NEILL SAID HE SAID ANTILOCK BRAKES SHOULD NEVER BE PUMPED AS DRIVERS ARE TAUGHT TO DO DURING EMERGENCY STOPS WITH CONVENTIONAL BRAKES ANTILOCK BRAKES CAN PREVENT WHEELS FROM LOCKING REDUCE STOPPING DISTANCES AND IMPROVE DRIVER CONTROL DURING EMERGENCY BRAKING ESPECIALLY ON WET AND SLIPPERY PAVEMENT 9401280132 940128 AT&T PROFIT REVENUE SHOW STRONG GROWTH BUT NET INCOME FELL BY 2 IN THE FOURTH QUARTER ON ONETIME CHARGES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO POSTED A SLIGHT DECLINE IN FOURTHQUARTER NET INCOME BECAUSE OF ONETIME CHARGES BUT ACROSSTHEBOARD GROWTH IN ITS BUSINESSES GENERATED STRONG REVENUE AND OPERATING PROFITS WHILE AT&T'S GAINS MET ANALYSTS' EXPECTATIONS IMPROVEMENTS IN THE COMPANY'S LONGDISTANCE BUSINESS AND IN NETWORK EQUIPMENT SALES WERE UNUSUALLY ROBUST GIVEN FIERCE COMPETITION IN BOTH SECTORS AT&T'S NCR CORP COMPUTER UNIT MOREOVER REBOUNDED WITH AN OPERATING PROFIT AND A 21 INCREASE IN EQUIPMENT SALES FOURTHQUARTER NET FELL 2 TO 982 MILLION OR 72 CENTS A SHARE FROM 1 BILLION OR 75 CENTS A SHARE A YEAR AGO REFLECTING A REDUCTION OF 167 MILLION OR 13 CENTS A SHARE BECAUSE OF AN ACCOUNTING CHANGE FOR BENEFITS AND A RESTRUCTURING CHARGE AT NCR WITHOUT THE CHARGE NET INCOME WOULD HAVE RISEN 15 REVENUE GREW 55 TO 1846 BILLION FROM 175 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AT&T GAINED 75 CENTS TO 5675 AT&T'S LONGDISTANCE REVENUE INCREASED 2 IN THE QUARTER TO 992 BILLION AND ROSE NEARLY 1 IN THE YEAR TO 3986 BILLION A SHOWING THAT AT&T ATTRIBUTED TO TRAFFIC GAINS IN THE TOLLFREE CALLING MARKET AND AN INCREASE IN CONSUMER BUSINESS CALLING TRAFFIC GREW SLIGHTLY MORE THAN 6 IN THE QUARTER THE UNIT'S BEST PERFORMANCE IN A YEAR AND A HALF AND ROSE 55 IN THE YEAR PAINEWEBBER ANALYST JACK B GRUBMAN ESTIMATED AT&T'S CONSUMER TRAFFIC ALONE GREW 5 IN THE QUARTER A SIGNIFICANT BOOST WHEN THEY HAD BEEN RUNNING ZERO TO 1 THROUGH ALL OF 1993 HE ADDED THAT AT&T'S NEW TRUE REWARDS CONSUMER PLAN AIMED AT DERAILING MCI COMMUNICATIONS CORP'S FRIENDS & FAMILY PROGRAM IS RUNNING DOUBLE THEIR EXPECTATIONS IN TERMS OF CUSTOMER SIGNUPS THIS WAS PROBABLY AT&T'S STRONGEST QUARTER EVER MR GRUBMAN SAID NOTING THAT AT&T'S OPERATING MARGIN OF 104 WAS A RECORD FOR THE COMPANY ITS TWO ENGINES LONGDISTANCE AND NETWORK SYSTEMS ARE REALLY CRANKING TONY FERRUGIA AN ANALYST AT AG EDWARDS & SONS ST LOUIS HAD EXPECTED 5 GROWTH RATHER THAN THE 8 GROWTH AT&T SHOWED IN EQUIPMENT SALES FOR THE YEAR THEY'RE WELLPOSITIONED FOR THE NEXT THREE TO FIVE YEARS SAID MR FERRUGIA WHO TWO WEEKS AGO IMPROVED HIS RATING ON AT&T STOCK TO A BUY FROM A HOLD IT WAS A SOLID QUARTER ACROSS OUR LINES OF BUSINESS SAID RICHARD MILLER AT&T'S CHIEF FINANCIAL OFFICER HE NOTED THAT SALES OF NETWORK EQUIPMENT SHOWED STRENGTH GAINING 22 OUTSIDE THE US IN THE FULL YEAR HOWEVER AT&T HAD A 379 BILLION OR 280 A SHARE NET LOSS BECAUSE OF ONETIME CHARGES THEY INCLUDED NONCASH CHARGES OF 7 BILLION FOR RETIREE HEALTH BENEFITS AND 13 BILLION FOR SEPARATION AND DISABILITY PAYMENTS THAT WAS PARTIALLY OFFSET BY A 383 MILLION GAIN FROM AN ACCOUNTING CHANGE AFFECTING INCOME TAXES AT&T SAID THE FULLYEAR LOSS COMPARED WITH NET INCOME OF 38 BILLION OR 286 A SHARE A YEAR AGO REVENUE GREW 35 TO 6716 BILLION FROM 649 BILLION EXCLUDING THE CHARGES AND A PREVIOUSLY ANNOUNCED RESTRUCTURING AT NCR AT&T SAID NET INCOME WOULD HAVE RISEN 12 TO 426 BILLION OR 315 A SHARE WHILE AT&T'S COSTS GREW IN THE QUARTER AND THE YEAR 5 AND 2 RESPECTIVELY THEY DECLINED AS A PERCENT OF REVENUE TOTAL COSTS WERE 112 BILLION IN THE QUARTER AND 4057 BILLION FOR THE YEAR OVERALL PRODUCT SALES INCLUDING PHONE EQUIPMENT COMPUTERS AND CHIPS GREW ALMOST 11 TO 588 BILLION IN THE QUARTER AND 8 IN THE YEAR TO 178 BILLION WITHIN THAT SECTOR NETWORK EQUIPMENT SALES ROSE ALMOST 11 TO 28 BILLION IN THE FOURTH QUARTER SALES OF COMMUNICATIONS PRODUCTS TO BUSINESSES AND CONSUMERS ROSE 125 IN THE QUARTER TO 113 BILLION AND WERE UP 11 TO 344 BILLION IN THE YEAR AT NCR WHICH THIS WEEK CHANGED ITS NAME TO AT&T GLOBAL INFORMATION SOLUTIONS SALES OF COMPUTER SYSTEMS ROSE 20 TO 126 BILLION IN THE QUARTER AND THE COMPANY'S TOTAL REVENUE ROSE 7 TO 23 BILLION IN THE YEAR NCR'S TOTAL REVENUE GREW 2 TO 726 BILLION EXCLUDING RESTRUCTURING CHARGES OF ABOUT 120 MILLION THE DAYTON OHIO COMPUTER UNIT POSTED OPERATING PROFIT OF 61 MILLION FOR THE QUARTER DESPITE THE ECONOMIC SLUMP IN EUROPE AND JAPAN FINANCIAL SERVICES REVENUE CLIMBED 23 IN THE QUARTER TO 712 MILLION AND ROSE 32 TO 25 BILLION IN THE YEAR AT&T SAID PAINEWEBBER'S MR GRUBMAN ESTIMATED THE UNIVERSAL CREDIT CARD WITH 17 MILLION CARDS IN THE MARKET ACCOUNTED FOR ABOUT HALF OF THE REVENUE 9401280131 940128 MARKETING & MEDIA ADVERTISING LINTAS SPINS OFF A NEW AGENCY TO HANDLE MAYBELLINE ACCOUNT BY KEVIN GOLDMAN LINTASWORLDWIDE WITH ITS NEW YORK OPERATION HURT BY THE LOSS OF SEVERAL MAJOR ACCOUNTS LAST YEAR TOOK AN AGGRESSIVE STEP YESTERDAY TO KEEP ONE OF ITS MOST VALUABLE REMAINING CLIENTS HAPPY LINTAS OWNED BY INTERPUBLIC GROUP CREATED A NEW AGENCY THE GOTHAM GROUP TO HANDLE THE 50 MILLION MAYBELLINE ACCOUNT LINTAS CHOSE TWO EXECUTIVES FROM ITS HOBBLED NEW YORK OPERATION TO HEAD THE FLEDGING GOTHAM AGENCY F STONE ROBERTS PRESIDENT AND CHIEF OPERATING OFFICER AT LINTASNEW YORK WILL BECOME CHIEF EXECUTIVE OFFICER AND SHERI L COLONEL LINTAS EXECUTIVE VICE PRESIDENT WILL BE PRESIDENT ADDITIONALLY LYNN GIORDANO WHO IS GROUP CREATIVE DIRECTOR AT D'ARCY MASIUS BENTON & BOWLES IS JOINING GOTHAM AS CREATIVE DIRECTOR GOTHAM WILL BE WHOLLY OWNED BY INTERPUBLIC BUT MR ROBERTS WILL REPORT TO KENNETH L ROBBINS CHAIRMAN AND CHIEF EXECUTIVE OF LINTASWORLDWIDE IT WILL HAVE NO CONNECTION WITH THE NEW YORK AGENCY WHERE MR ROBERTS 49 YEARS OLD WORKED FOR NEARLY A QUARTER OF A CENTURY LINTAS IS THE LATEST AD SHOP ALONG MADISON AVENUE TO CREATE AN AGENCY SPECIFICALLY TO SERVICE A MAJOR CLIENT IN AUGUST OMNICOM GROUP ESTABLISHED THE OFFSHOOT AGENCY OF DDB NEEDHAM BERLIN WRIGHT CAMERON TO WORK ON THE VOLKSWAGEN ACCOUNT IN NOVEMBER GREY ADVERTISING ESTABLISHED G2 AN AUTONOMOUS FULLSERVICE AGENCY TO HANDLE THE ACCOUNT OF MITSUBISHI MOTOR SALES OF AMERICA IN BOTH INSTANCES NEEDHAM AND GREY TOOK TOP EXECUTIVES FROM THEIR CORE AGENCIES TO FORM THE SPINOFF OPERATIONS THESE AGENCIES WERE ESTABLISHED PARTIALLY SO THEY AND THEIR BIGGERSISTER AGENCIES COULD COMPETE FOR NEW BUSINESS WITHOUT FACING CLIENTCONFLICT PROBLEMS BY OPENING GOTHAM TO HANDLE MAYBELLINE FOR EXAMPLE MR ROBERTS SAYS LINTASNEW YORK NOW COULD COMPETE FOR BUSINESS FROM SUCH ADVERTISERS AS JOHNSON & JOHNSON AND CHESEBROUGHPOND'S WHOSE SKINCARE PRODUCTS COMPETE WITH MAYBELLINE'S REVITALIZING LINE MR ROBERTS WON'T HAVE A SUCCESSOR AT LINTAS INSTEAD THE TITLE OF PRESIDENT WILL BE ELIMINATED AND THE DUTIES AND TITLE OF OPERATING CHIEF WILL BE TAKEN BY ANTHONY G MILLER CHAIRMAN AND CHIEF EXECUTIVE OF LINTASNEW YORK MR MILLER'S ADDED RESPONSIBILITY WAS UNEXPECTED BY THE AD INDUSTRY THERE WAS SPECULATION RECENTLY THAT MR MILLER MIGHT TAKE THE FALL FOR THE STEADY LOSSES OF ACCOUNTS INCLUDING DIET COKE AND INTERNATIONAL BUSINESS MACHINE'S PERSONAL COMPUTER BUT MR ROBBINS SAID IN AN INTERVIEW YESTERDAY THAT NOTHING COULD BE FURTHER FROM THE TRUTH WE WENT TO INTERPUBLIC WITH THIS PLAN INCLUDING MR MILLER'S ADDITIONAL TITLE AND THEY ENDORSED IT HE SAID GOTHAM WILL HAVE AN INITIAL STAFF OF 30 ALL CULLED FROM LINTAS'S NEW YORK OPERATION ITS OFFICES WILL BE ON LOWER FIFTH AVENUE FAR FROM LINTAS'S HEADQUARTERS IN MIDTOWN MANHATTAN LINTAS EMPLOYEES ARE NO STRANGERS TO THE OFFICES AT 79 FIFTH AVE LAST YEAR LINTAS ESTABLISHED A SPINOFF SHOP CALLED L2 IN WHAT WAS ULTIMATELY AN UNSUCCESSFUL ATTEMPT TO RETAIN THE IBM PERSONAL COMPUTER ACCOUNT IT WAS AWARDED TO OMNICOM'S MERKLEY NEWMAN HARTY MR ROBERTS DESCRIBED THE GOTHAM OPENING AS A SEAMLESS TRANSITION NEW ADS FOR MAYBELLINE ARE ALREADY IN PRODUCTION GOTHAM BEGAN TO TAKE SHAPE LATE LAST YEAR AND HAS NO CONNECTION TO THE BIG ACCOUNT LOSSES SAID MR ROBBINS LINTAS INFORMED MAYBELLINE ABOUT ITS PLANS TWO WEEKS AGO AND RECEIVED ITS ENDORSEMENT MR ROBERTS SAID THAT GOTHAM HAS PLANS TO BECOME A FULLSERVICE AGENCY ONE THAT WILL COMPETE FOR ACCOUNTS FROM VARYING BUSINESSES BUT FIRST IT MUST PROVE TO MAYBELLINE ITS CHARTER CLIENT AS MR ROBERTS CALLED IT THAT GOTHAM IS UP AND RUNNING THE OTHER SPINOFF AGENCIES HAVE ACCOUNTS BEYOND THEIR CHARTER CLIENTS BERLIN WRIGHT HAS THE NEW YORKER MAGAZINE AMONG OTHERS G2 HAS MITSUBISHI DEALERS IN DALLAS HOUSTON AND LOS ANGELES ASKED WHETHER GOTHAM IS BEING ESTABLISHED BECAUSE MAYBELLINE IS UNHAPPY WITH LINTAS MR ROBERTS SAID THAT WE HAVE A HAPPY CLIENT MR ROBERTS SAID HIS DEPARTURE FROM LINTAS IS BITTERSWEET BECAUSE OF THE TREMENDOUS NUMBER OF FRIENDS AND MEMORIES HOWEVER HE WORKED WITH MS COLONEL 38 FOR ABOUT A DOZEN YEARS MS COLONEL SAID HER ARM DIDN'T NEED ANY TWISTING BECAUSE THE NEW AGENCY REPRESENTS A CHALLENGE AND OPPORTUNITY GOTHAM MARKS A REUNION OF MR ROBERTS MS COLONEL AND MS GIORDANO 45 THE TRIO WORKED TOGETHER ON PROCTER & GAMBLE'S COVER GIRL COSMETICS BUSINESS AT LINTAS'S PREDECESSOR AGENCY SSC&B IF MR ROBERTS HAS A SPECIALTY REPUTATION ON MADISON AVENUE IT IS THE BEAUTYCARE BUSINESS HE EVEN MARRIED A FORMER COVER GIRL MODEL THERE ARE MANY RUMORS NOT TRUE HE SAID THAT RUMOR HAPPILY IS TRUE KELLOGG CO IS PITCHING ALLBRAN EXTRA FIBER CEREAL WITH AN ANTICANCER MESSAGE AND A TIEIN TO THE AMERICAN CANCER SOCIETY A RETURN TO A TACTIC THE COMPANY FIRST USED 10 YEARS AGO THE NEW CAMPAIGN FROM LEO BURNETT CHICAGO CONSISTS OF 30SECOND COMMERCIALS DIVIDED INTO TWO PARTS THE FIRST 15 SECONDS ARE DEVOTED TO DEPICTING HEALTHY LIFESTYLES INCLUDING A MAN PEDALING AN EXERCISE BICYCLE AND A WOMAN PERFORMING A BREAST SELFEXAM A VOICEOVER RECOMMENDS EATING FOODS WITH FIBER AS PART OF A LOWFAT DIET WHICH MAY ACTUALLY REDUCE THE RISK OF CERTAIN TYPES OF CANCER AN AMERICAN CANCER SOCIETY INFORMATION LINE APPEARS ON SCREEN AND THE NARRATOR SAYS BASIC HEALTH CARE IMMEDIATELY AFTER COMES A 15SECOND COMMERCIAL FOR KELLOGG ALLBRAN CLAIMING ALLBRAN IS A SUPERIOR FIBER SOURCE TO SHREDDED WHEAT THE TIMING OF THE CAMPAIGN COULDN'T BE BETTER SAID DR GARY COSTLEY PRESIDENT OF KELLOGG'S NORTH AMERICAN OPERATIONS THE COUNTRY IS IN A MAJOR SERIOUS DEBATE ON HEALTH CARE WE BELIEVE FUNDAMENTALLY THAT ONE WAY TO REDUCE COSTS IS TO PROVIDE WAYS FOR PEOPLE NOT TO GET SICK TEN YEARS AGO KELLOGG RAN ADS FOR ALLBRAN TOUTING THE LINK BETWEEN HIGH FIBER LOWFAT DIETS AND LOWER CANCER INCIDENCE KELLOGG ALSO PUT THE NATIONAL CANCER INSTITUTE'S NAME AND ADDRESS ON PRODUCT LABELS THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A WASHINGTON ADVOCACY GROUP GAVE ITS ANNUAL HUBBARD AWARDS TO ADS IT DEEMED THE MOST MISLEADING UNFAIR AND IRRESPONSIBLE IN 1993 AMONG THE 12 MARKETERS CITED WERE HONDA MOTOR CO'S AMERICAN HONDA MOTOR CO WHICH OBSCURES THE TRUE COST OF LEASING CSPI CHARGED WITH ADS THAT FLASH FINANCIAL INFORMATION ON THE SCREEN TOO QUICKLY AND THE AMERICAN DAIRY ASSOCIATION'S CLAIM THAT VITAMIN A HELPS KEEP SKIN SMOOTH IS UNFAIR THE GROUP SAID BECAUSE WELLFED AMERICANS DON'T SUFFER FROM SKIN PROBLEMS ASSOCIATED WITH SEVERE DEFICIENCIES HONDA SAID ITS ADS MEET ALL LEGAL REQUIREMENTS AND INVITED VIEWERS INTO SHOWROOMS FOR COMPLETE DETAILS THE DAIRY ASSOCIATION SAID IT STANDS BY ITS CLAIMS THE GROUP ALSO NAMED CAPITAL HOLDING'S FIRST DEPOSIT NATIONAL BANK CITING NO ANNUAL FEE AND LOW INTEREST RATES CLAIMS FOR ITS VISA GOLD CARD DESPITE HIGH MONTHLY CREDITLINE FEES THE NEW HAMPSHIRE BANK SAID IT STANDS BY THE ACCURACY OF ITS MARKETING CLAIMS ALSO CITED FOR A HUBBARD COMMERCIAL EXCESS AWARD WAS THE PUBLIC BROADCASTING SERVICE FOR AIRING UNDERWRITER ACKNOWLEDGEMENTS THAT CSPI SAID ARE TANTAMOUNT TO REGULAR ADS ON TV A PBS SPOKESMAN SAID I THINK THE CENTER DESERVES THE PT BARNUM AWARD FOR SELFPROMOTIONAL EXCESS 9401280130 940128 KANSAS GAS & ELECTRIC BONDS WICHITA KAN KANSAS GAS & ELECTRIC CO A UNIT OF WESTERN RESOURCES INC SAID IT IS REDEEMING EARLY BONDS VALUED AT 27965000 WHICH IT ISSUED JOINTLY WITH KANSAS CITY POWER & LIGHT CO THE UTILITY COMPANY SAID IT WOULD PAY A 100 REDEMPTION PRICE PLUS ACCRUED INTEREST TO THE REDEMPTION DATE FOR 50 OF THE 5 3/4 POLLUTIONCONTROL REVENUE BONDS SERIES 1973 ISSUED TO THE CITY OF LACYGNE KANSAS KANSAS CITY POWER & LIGHT WILL PAY FOR THE REMAINING 50 THE REDEMPTION DATE IS MARCH 1 9401280129 940128 SARA LEE STOCK SLIDES AS 2NDPERIOD NET IS HURT BY SLUMP IN PERSONAL PRODUCTS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SARA LEE CORP ITS HUGE HOSIERY BUSINESS SNAGGED BY A SHIFT TO MORE CASUAL DRESS AND INTENSE COMPETITION REPORTED DISAPPOINTING FISCAL SECONDQUARTER RESULTS AND SAID EARNINGS FOR THE CURRENT QUARTER WOULD BE FLAT THE NUMBERS ALSO PROVIDED A CLUE ABOUT WHY SARA LEE'S FIRST NONAMERICAN PRESIDENT LASTED ONLY SIX MONTHS ON THE JOB THE WORLD'S LARGEST MAKER OF STOCKINGS AND SOCKS HAS DECLINED TO DISCUSS THE SUDDEN RESIGNATION ON DEC 31 OF CORNELIS BOONSTRA WHO HAD SPENT MUCH OF HIS TENURE TRYING TO REPAIR THE COMPANY'S 6 BILLION PERSONAL PRODUCTS BUSINESS THE COMPANY SAID HE LEFT FOR PERSONAL REASONS PERHAPS SOME WERE PERSONAL PRODUCTS' REASONS SAID JOHN M MCMILLIN FOOD ANALYST AT PRUDENTIAL SECURITIES INC AFTER SEEING THE RESULTS SARA LEE'S STOCK FELL ON THE NEWS DROPPING 150 OR 6 TO 2350 AS MORE THAN 31 MILLION SHARES TRADED ON THE NEW YORK STOCK EXCHANGE FOR THE SECOND QUARTER ENDED JAN 1 NET INCOME WAS 236 MILLION OR 48 CENTS A SHARE UP 72 FROM 220 MILLION OR 44 CENTS A SHARE A YEAR EARLIER THE GAIN WAS FUELED BY THE STRONG PERFORMANCE OF SARA LEE'S PACKAGED MEATS AND BAKERY BUSINESS AS WELL AS ITS HOUSEHOLD AND PERSONAL CARE UNIT EACH OF WHICH POSTED DOUBLEDIGIT GAINS IN OPERATING INCOME TOTAL SALES ROSE 44 TO 401 BILLION FROM 384 BILLION BUT PERSONAL PRODUCTS THE CHICAGO COMPANY'S BIGGEST SECTOR AND ONE THAT WALL STREET INCREASINGLY LOOKS TO FOR FUTURE GROWTH REPORTED AN 84 DECLINE IN OPERATING PROFIT TO 179 MILLION FROM 196 MILLION ON A 12 SALES SLIPPAGE TO 17 BILLION SARA LEE SELLS SUCH POWERHOUSE HOSIERY BRANDS AS HANES L'EGGS AND DIM ALSO INCLUDED IN PERSONAL PRODUCTS ARE PLAYTEX WOMEN'S UNDERWEAR HANES TSHIRTS AND UNDERWEAR AND CHAMPION FLEECEWEAR JOANNA SCHARF AN SG WARBURG & CO ANALYST ATTRIBUTED THE UNRAVELING IN HOSIERY TO A STRUCTURAL SHIFT IN WHAT WOMEN ARE PUTTING ON THEIR LEGS THAT SARA LEE FAILED TO RECOGNIZE EARLY ON WHILE MORE WOMEN SHED SHEER PANTYHOSE AND STOCKINGS FOR OPAQUE HOSE AND EVEN SOCKS AS PART OF A MORE CASUAL LIFESTYLE SARA LEE MISTAKENLY REGARDED IT AS A FASHION STATEMENT MS SCHARF SAID THEY'RE LATE TO THE PARTY BUT EVENTUALLY WILL CATCH UP SHE PREDICTED STILL SHE SAID IT'S A DISAPPOINTMENT TO SEE A DECLINE IN HOSIERY AGAINST A DECLINE LAST YEAR SARA LEE BLAMED ONGOING SOFTNESS IN OUR EUROPEAN HOSIERY AND KNITPRODUCTS OPERATIONS COMBINED WITH WEAKERTHANEXPECTED TRENDS FOR US HOSIERY AND KNIT PRODUCTS FOR THE LIKELIHOOD OF GENERALLY FLAT EARNINGS FOR THE THIRD QUARTER A YEAR AGO SARA LEE EARNED 152 MILLION OR 30 CENTS A SHARE ON SALES OF 33 BILLION ANALYSTS TAKEN ABACK BY THE LATEST NUMBERS HAD BEEN PROJECTING THIRDQUARTER EARNINGS OF 33 CENTS AND FULLYEAR FIGURES OF 154 ACCORDING TO FIRST CALL WHICH MONITORS ESTIMATES BECAUSE THE COMPANY NOW DOUBTS IT CAN FULLY OFFSET PERSONAL PRODUCTS' PROBLEMS WITH OTHER BUSINESSES PRUDENTIAL'S MR MCMILLIN NOW EXPECTS THAT EARNINGS WILL BE UP ABOUT 5 FOR THE YEAR INSTEAD OF MOST PEOPLE'S HOPES FOR 10 SOME ANALYSTS SUGGEST THAT WHAT SARA LEE NEEDS TO DO WITH ITS APPAREL BUSINESS IN EUROPE WHERE AN ECONOMIC SLUMP HAS EXACERBATED EXCESS MANUFACTURING CAPACITY IS TO FURTHER REDUCE COSTS PUSH BRANDED PRODUCTS WHEREVER POSSIBLE AND WAIT FOR WHAT SOME SEE AS INEVITABLE INDUSTRY CONSOLIDATION DURING YESTERDAY'S CONFERENCE CALL WITH ANALYSTS SARA LEE DISCLOSED THAT IT HAS ABANDONED EFFORTS TO INTRODUCE ITS PRINCESSA HOSIERY LINE IN SPAIN THE ISSUE IN EUROPE IS MUCH MORE COMPETITION THAN VOLUME MR MCMILLIN SAID WARBURG'S MS SCHARF CITING THE PRESENCE OF SUCH RIVALS AS USBASED FRUIT OF THE LOOM AND UKBASED HARTSTONE SAID THE NEARTERM COSTS OF SARA LEE POSITIONING ITSELF TO BE THE EUROPEAN LEADER ARE GREATER THAN I ANTICIPATED TRADITIONALLY SARA LEE HAS BEEN RELUCTANT TO ENGAGE IN PRICE WARS INSTEAD MAINTAINING ITS MARGINS BY STRINGENT COST REDUCTIONS ITS STRATEGY IS TO TURN REGIONAL LABELS INTO MEGABRANDS THAT SPAN BORDERS WHEREVER POSSIBLE AMONG ITS MAJOR FOODSIDE BRANDS ARE HILLSHIRE FARM JIMMY DEAN AND SARA LEE IN BEVERAGES ITS DOUWE EGBERTS COFFEE IS A LEADING EUROPEAN BRAND IN HOUSEHOLD ITEMS KIWI SHOE POLISH AND IN ACCESSORIES COACH LEATHER GOODS 9401280128 940128 COMMODITIES GOLD SILVER FUTURES PRICES PLUMMET ON WAVES OF TECHNICAL SELLING LACK OF PHYSICAL DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD AND SILVER FUTURES PRICES PLUMMETED ON WAVES OF TECHNICAL SELLING AND AN ABSENCE OF THE PHYSICAL DEMAND FOR PRECIOUS METALS THAT HAS SUPPORTED THESE MARKETS IN RECENT MONTHS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN 720 TO 37950 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT FELL 16 CENTS TO 498 AN OUNCE TRADERS SAID HEAVY SELLING BY A LARGE NEW YORK INVESTMENT BANK HELPED TO INSTIGATE THE ROUT DURING THE LAST HALF OF THE TRADING DAY AS THE AFTERNOON WORE ON THE ABSENCE OF MIDDLE EASTERN AND INDIAN INVESTORS WHO LATELY HAVE SUPPORTED THE MARKET ACCELERATED THE PACE OF THE PRICE DECLINE DESPITE THE BULLISH CHARTS AND EUPHORIA BY FUTURES FUNDS THE KEY IS THAT PHYSICAL DEMAND HAS DRIED UP IN RECENT WEEKS SAID BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC THE MARKETS HAVE BEEN OVERBOUGHT AND THE CASH GUYS WHO BOUGHT AT LOWER LEVELS HAVE STARTED TAKING PROFITS FOR WEEKS GOLD PRICES HAVE FLUCTUATED IN A RANGE BETWEEN ROUGHLY 380 AND 395 AN OUNCE BUT PRICES FELL BELOW THE BOTTOM OF THAT RANGE YESTERDAY LARGELY BECAUSE OF THE ABSENCE OF PHYSICAL DEMAND THE PRICE OF SILVER SEEMED TO FOLLOW GOLD'S LEAD ANALYSTS SAID LAST YEAR HEAVY BUYING OF SILVER BULLION BY SAUDI INVESTORS WHO WORRIED ABOUT A POSSIBLE DEVALUATION OF THEIR CURRENCY HELPED LEND STRENGTH TO BOTH SILVER AND GOLD PRICES NOT SO YESTERDAY HOWEVER I WAS DISAPPOINTED IN THE PHYSICAL DEMAND SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP THE GUYS IN THE MIDDLE EAST SEEM QUITE CONTENT TO LET THE MARKET COME TO THEM MOST OF THE BUYING OF SILVER BY MIDDLE EASTERN INVESTORS OCCURRED LAST FALL IN THE RANGE FROM 440 TO 450 AN OUNCE AS PRICES ROSE ABOVE 450 AN OUNCE COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY JUMPED ON THE BUYING BANDWAGON SINCE THEN HOWEVER THE UPWARD MOMENTUM OF BOTH THE GOLD AND SILVER MARKETS HAS STALLED AND MAY BE DESTINED FOR FURTHER EROSION IN GOLD MS GIORDANO SAID IF WE OPEN TODAY UNDER 377 370TO372 IS THE NEXT LEVEL OF SUPPORT I THINK THAT LEVEL WILL HOLD IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS WHEAT FUTURES PRICES FELL AFTER THE INTERNATIONAL WHEAT COUNCIL FORECAST THAT FOREIGN WHEAT IMPORTS WOULD TUMBLE THIS YEAR AND US EXPORTERS WOULD BEAR THE BRUNT OF THE DECLINE AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN 4 1/2 CENTS TO 3685 A BUSHEL THE WHEAT COUNCIL ESTIMATES WHEAT IMPORTS BY RUSSIA WILL SLIDE TO SIX MILLION METRIC TONS IN THE 199394 SEASON FROM 111 MILLION TONS A YEAR AGO ASIAN IMPORTS INCLUDING CHINA WILL FALL TO 294 MILLION TONS IN 1994 FROM 334 MILLION IN 1993 THE COUNCIL SAID RUSSIAN IMPORTS WILL DECLINE MAINLY BECAUSE IT IS MORE DIFFICULT TO OBTAIN FOREIGN BORROWING CREDITS NOT BECAUSE RUSSIA DOESN'T NEED THE WHEAT IN FACT WHEAT PRODUCTION IN RUSSIA IS DOWN TO 43 MILLION TONS FROM 462 MILLION A YEAR AGO AND THE RUSSIAN GOVERNMENT PLANS TO LEND FARMERS ABOUT 9 BILLION TO BUY FERTILIZERS AND EQUIPMENT ASIAN PURCHASES WILL BE LOWER AS A RESULT OF BETTER CROPS IN CHINA INDIA AND PAKISTAN THE COUNCIL SAID ENERGY THE LATEST COLD SPELL IN MUCH OF THE NORTHERN HALF OF THE COUNTRY PARTICULARLY THE NORTHEAST BOOSTED PRICES FOR HEATING OIL IN THE PAST FIVE SESSIONS ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY HEATING OIL HAS SURGED MORE THAN FIVE CENTS A GALLON THE CONTRACT SETTLED YESTERDAY AT 5306 CENTS A GALLON UP 075 CENT THE COLD WEATHER HAS SPURRED DEMAND FOR HEATING OIL AND DEPLETED INVENTORIES AT THE SAME TIME MARKET PARTICIPANTS POINTED TO AN ENERGY DEPARTMENT REPORT RELEASED WEDNESDAY AFTER TRADING ENDED IN NEW YORK WHICH SHOWED INVENTORIES FELL BY 89 MILLION BARRELS IN THE WEEK ENDED DEC 21 NEARLY EIGHT MILLION BARRELS OF THE DECLINE WAS ON THE EAST COAST THE WORLD'S LARGEST HEATINGOIL MARKET NATURAL GAS FUTURES ALSO ROSE BECAUSE OF THE COLD WEATHER AND A SHARP DECLINE IN THE LEVEL OF GAS IN STORAGE GAS FOR MARCH DELIVERY GAINED 58 CENTS PER MILLION BRITISH THERMAL UNITS TO SETTLE AT 2417 MEANWHILE TRADERS TOOK PROFITS IN CRUDE OIL FUTURES THE MARCH CONTRACT SETTLED AT 1542 A BARREL DOWN FIVE CENTS ALUMINUM THE PRICE OF ALUMINUM SOARED TO A SIXMONTH HIGH OF 1244 A METRIC TON ON EXPECTATIONS THAT PRODUCERS WOULD REACH AN AGREEMENT TO SLASH ALUMINUM OUTPUT THE PRICE IS UP 20 FROM THE COMMODITY'S LOW POINT LAST NOVEMBER ALUMINUM FUTURES CONTRACTS ARE TRADED ON THE LONDON METAL EXCHANGE THE MARKET IS EXPECTING AN ACCORD SAID WILLIAM ADAMS ANALYST AT RUDOLF WOLFF & CO MEMBERS OF THE LONDON METAL EXCHANGE MOST ANALYSTS EXPECT AN ANNUAL CUT OF 15 TO 2 MILLION METRIC TONS OF ALUMINUM INCLUDING 500000 TONS LESS OUTPUT FROM THE COMMONWEALTH OF INDEPENDENT STATES MR ADAMS SAID 9401280127 940128 WHO'S NEWS ROYAL CROWN COLA A TRIARC UNIT CREATES FOUR NEW POSITIONS NEW YORK ROYAL CROWN COLA CO A UNIT OF TRIARC COS CREATED FOUR NEW MANAGEMENT POSITIONS AIMED AT REVITALIZING THE SOFTDRINK MAKER JOHN C CARSON ROYAL CROWN PRESIDENT AND CHIEF EXECUTIVE SAID THE NEW MANAGEMENT TEAM IS AIMED AT IMPROVING THE COMPANY'S RELATIONS WITH ITS BOTTLERS WHICH ANALYSTS SAID HAVE BEEN A WEAK LINK IN OPERATIONS THE FORT LAUDERDALE FLA COMPANY ALSO SAID IT WILL LAUNCH A 10 MILLION ADVERTISING CAMPAIGN CHIEF FINANCIAL OFFICER KENNETH A THOMAS 40 WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT OF BUSINESS INFORMATION SYSTEMS AND HUMAN RESOURCES JERRY WILL 44 WAS NAMED SENIOR VICEPRESIDENT FOR BUSINESS DEVELOPMENT HE PREVIOUSLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF PREMIUM BEVERAGES INC A SOFTDRINK UNIT OF THE SEAGRAM CO OF MONTREAL ALAN LEYLAND 53 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF OPERATIONS RESPONSIBLE FOR ROYAL CROWN'S CONCENTRATE OPERATIONS ITS US FRANCHISE BOTTLER NETWORK AND PRIVATELABEL BUSINESS MR LEYLAND MOST RECENTLY A PRIVATE CONSULTANT PREVIOUSLY WAS PRESIDENT OF CANADIAN BOTTLER LAKELANDS BEVERAGES DONALD LENEHAN 41 WAS NAMED SENIOR VICE PRESIDENT OF MARKETING HE FORMERLY WAS VICE PRESIDENT OF MARKETING FOR CABLE NEWS NETWORK AND HEADLINE NEWS UNITS OF TURNER BROADCASTING SYSTEM INC OF ATLANTA JERRY SMITH 49 WILL CONTINUE AS PRESIDENT OF THE INTERNATIONAL GROUP 9401280126 940128 BANKING GROUPS TO ADOPT MUTUALFUND SALES POLICY NEW YORK BOWING TO REGULATORY AND CONGRESSIONAL COMPLAINTS MAJOR BANKING TRADE GROUPS ARE PLANNING TO RECOMMEND THAT CUSTOMERS BE REQUIRED TO SIGN STATEMENTS THAT THEY UNDERSTAND MUTUAL FUNDS THEY BUY THROUGH BANKS ARE UNINSURED IN NONBINDING GUIDELINES ISSUED IN JULY THE COMPTROLLER OF THE CURRENCY MADE THE SAME RECOMMENDATION ALTHOUGH MANY BANKS DECLINED TO DO SO REGULATORS AND LEGISLATORS HAVE BECOME INCREASINGLY UNCOMFORTABLE WITH ANECDOTAL EVIDENCE THAT BANK EMPLOYEES SOME OF THEM TELLERS WERE OFFERING EQUITYBASED INVESTMENTS TO UNSOPHISTICATED CONSUMERS WHO MISTAKENLY BELIEVED THAT THEY WERE BUYING PRODUCTS WHICH WERE BACKED BY THE FEDERAL DEPOSIT INSURANCE CORP BANKING GROUPS EXPECTED TO ADOPT THE POLICY INCLUDE THE AMERICAN BANKERS ASSOCIATION THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA THE NATIONAL BANKERS ASSOCIATION THE BANKERS ROUNDTABLE THE CONSUMER BANKERS ASSOCIATION AND THE SAVINGS AND COMMUNITY BANKERS OF AMERICA 9401280125 940128 CANADA PLANS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 2 BILLION CANADIAN DOLLARS US152 BILLION OF 65 BONDS DUE JUNE 1 2004 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9401280124 940128 WHO'S NEWS US BANCORP US BANCORP PORTLAND ORE THIS BANK HOLDING COMPANY NAMED GERRY CAMERON AS CHIEF EXECUTIVE OFFICER AND A DIRECTOR MR CAMERON 55 YEARS OLD WAS CHIEF OPERATING OFFICER HE SUCCEEDS ROGER BREEZLEY 55 WHO REMAINS CHAIRMAN 9401280123 940128 HONG KONG HOTEL OCCUPANCY HONG KONG HONG KONG HOTEL OCCUPANCY RATES JUMPED FIVE PERCENTAGE POINTS IN 1993 TO 87 OF CAPACITY THE HIGHESTTARIFF HOTELS HAD RATES OF 80 IN THE YEAR UP TWO PERCENTAGE POINTS WHILE THE NEXTHIGHEST GRADE HAD OCCUPANCY OF 90 UP FOUR POINTS 9401280122 940128 SIXTEEN PEOPLE ARE DISCIPLINED BY BIG BOARD VIOLATION OF LAWS AND RULES OF THE STOCK EXCHANGE ARE CITED IN ACTIONS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST 16 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS JOHN ENGELSKIRGER WILTON CONN A BRANCH OFFICE MANAGER WAS CENSURED FOR FAILING TO REASONABLY SUPERVISE A BROKER WHO MADE UNSUITABLE INVESTMENTS FOR A CUSTOMER HE HAD DENIED THE CHARGES ALLEN DERFLINGER FALLS CHURCH VA A FORMER BROKER WAS BARRED FOR MISAPPROPRIATING FUNDS FROM TWO CUSTOMER ACCOUNTS AS WELL AS SALES PRACTICE MISCONDUCT ANNA MARIA LUCIA DONATO PHILADELPHIA A FORMER NONREGISTERED EMPLOYEE WAS BARRED FOR MISAPPROPRIATING FUNDS AND PROPERTY FROM HER MEMBER FIRM UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT ADA MICHELLE GARVIN STATEN ISLAND NY A FORMER NONREGISTERED SERVICE REPRESENTATIVE WAS BARRED FOR MISAPPROPRIATING PETTY CASH FUNDS JAMES J HARRINGTON FORT LAUDERDALE FLA A BROKER WAS BARRED TWO MONTHS FOR FAILING TO PAY WITHIN 30 DAYS A 31278 ARBITRATION AWARD HE NEITHER ADMITTED NOR DENIED CHARGES GUY D ROBINSON BROOKLYN NY A FORMER OPTIONS TRADING RIGHT HOLDER WAS BARRED FOUR MONTHS FOR SIGNING A SPECIALIST'S CLEARING NUMBER ON A QUESTIONED TRADE FORM WITHOUT AUTHORIZATION AND FAILING TO DISCLOSE CERTAIN FACTS TO HIS EMPLOYER GREGORY EDWARD NORLANDER CAMARILLO CALIF A FORMER BROKER WAS BARRED FOUR WEEKS FOR ASKING A CUSTOMER TO MAKE A MISLEADING STATEMENT TO HIS OFFICE MANAGER AND FOR MISLEADING HIS MANAGER ABOUT A PERSONAL PAYMENT MADE TO A CUSTOMER MR NORLANDER DIDN'T ADMIT OR DENY FINDINGS LOUIS FRANCIS ALBANESE FAIRFIELD CONN A BROKER WAS FINED 15000 AND SUSPENDED ONE MONTH WITHOUT ADMITTING OR DENYING THAT HE MADE EXCESSIVE AND UNSUITABLE TRADES IN TWO ACCOUNTS LEONARD W KRANE LOUISVILLE KY A FORMER BROKER WITH AG EDWARDS & SONS INC AND SHEARSON LEHMAN HUTTON INC WAS BARRED FIVE YEARS WITHOUT ADMITTING OR DENYING THAT IN 198990 HE ENTERED TRADES THAT IMPROPERLY AFFECTED THE PRICE OF WHEELING PITTSBURGH STEEL CORP STOCK AND FAILED TO SECURE THE BEST PRICE FOR HIS CUSTOMERS THE EXCHANGE SAID DURING THE PERIOD MR KRANE AND HIS CUSTOMERS HELD ABOUT 9 OF THE FREELY TRADED SHARES OF WHEELING PITTSBURGH WHICH WAS OPERATING UNDER CHAPTER 11 BANKRUPTCY PROCEEDINGS THE EXCHANGE SAID ON AT LEAST 95 OCCASIONS MR KRANE ENTERED ORDERS FOR THE STOCK AT OR NEAR THE CLOSE OF TRADING AT PRICES AT OR ABOVE THE PREVAILING QUOTE IN ORDER TO ARTIFICIALLY MAINTAIN THE MARKET PRICE OR PREVENT A DECREASE IN VALUE OF THE POSITIONS THE EXCHANGE SAID THAT TO DATE COMPLAINTS AGAINST MR KRANE HAVE RESULTED IN SETTLEMENTS TOTALING ABOUT 102500 ROBERT L FOX COLUMBUS OHIO A FORMER BRANCH OFFICE MANAGER WAS FINED 5000 FOR FAILING TO SUPERVISE A BROKER WHO MADE UNSUITABLE TRADES IN ELDERLY CUSTOMERS' ACCOUNTS JOHN C MCCLOSKEY HADDONFIELD NJ A FORMER BROKER WAS BARRED EIGHT MONTHS FOR SPECULATIVE OPTIONS TRADES IN AN ACCOUNT RESULTING IN LOSSES OF ABOUT 29000 ROBERT CARL JENICAN YORBA LINDA CALIF A FORMER BROKER WAS BARRED FOR MISAPPROPRIATING CUSTOMER FUNDS AND ISSUING FALSE ACCOUNT STATEMENTS TO CUSTOMERS JOHN JAMES NOLAN BRONX NY A FORMER NONREGISTERED EMPLOYEE WAS BARRED WITHOUT ADMITTING OR DENYING MISAPPROPRIATING 23000 FROM HIS FIRM KAREN BUTLER PALISADES PARK NJ WAS BARRED FOR MISAPPROPRATING FUNDS FROM HER EMPLOYER STEPHEN TUCKER COTTRELL WALTHAM MASS A FORMER TRAINEE WAS BARRED ONE YEAR WITHOUT ADMITTING OR DENYING USING UNAUTHORIZED ASSISTANCE WHILE TAKING THE GENERAL SECURITIES BROKER QUALIFYING EXAM GREGORY JAY PARKS LANSING MICH A FORMER BROKER WAS BARRED FOUR MONTHS FOR MISCONDUCT IN HANDLING HIS PERSONAL SECURITIES ACCOUNT AT HIS MEMBER FIRM HE DIDN'T ADMIT OR DENY ALLEGATIONS 9401280121 940128 TECHNOLOGY INTERACTIVE NETWORK PLANS TEST SUNNYVALE CALIF INTERACTIVE NETWORK INC SAID IT WILL LAUNCH A TEST TO DETERMINE IF ITS SUBSCRIBERS ARE INTERESTED IN GAME COMPETITIONS OVER VIDEOGAME MAKER SEGA ENTERPRISES LTD'S CABLETELEVISION CHANNEL AS PART OF THE TEST LIBRARIES OF VIDEO GAMES WILL BE DELIVERED TO HOME SUBSCRIBERS OVER CABLE SHARES IN INTERACTIVE NETWORK WHICH OFFERS A SUBSCRIPTION SERVICE THAT ENABLES VIEWERS TO PLAY ALONG WITH TV GAME SHOWS AND SPORTS EVENTS ROSE 1125 TO 1050 IN OVERTHECOUNTER TRADING YESTERDAY 9401280120 940128 TECHNOLOGY & HEALTH SILICON GRAPHICS CHAIRMAN QUITS TO START A FIRM BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL SILICON GRAPHICS INC'S FOUNDING CHAIRMAN JAMES H CLARK RESIGNED FROM THE COMPANY AND ITS BOARD LATE YESTERDAY SAYING HE WANTS TO START HIS OWN INTERACTIVE TV SOFTWARE COMPANY THE MOVE FOLLOWS MORE THAN A YEAR OF SPECULATION AMONG INSIDERS ABOUT A RECENT RIFT BETWEEN MR CLARK 49 YEARS OLD AND THE CHIEF EXECUTIVE HE HANDPICKED IN 1984 EDWARD R MCCRACKEN WHO REMAINS AT HIS POST AND WILL CONTINUE TO OVERSEE DAYTODAY OPERATIONS MR CLARK WHO SET UP SILICON GRAPHICS' HIGHLY TOUTED MULTIMEDIA JOINTVENTURES WITH TIME WARNER INC AND NINTENDO WAS SAID TO BE PUSHING THE MOUNTAIN VIEW CALIF COMPANY TO EXPAND ITS GRAPHICCHIP TECHNOLOGY INTO THE LOWPRICED VIDEOGAME MARKET MEANWHILE MR MCCRACKEN WAS THOUGHT TO PLACE A HIGHER PRIORITY ON THE EXISTING BUSINESS OF SELLING FANCY WORKSTATIONS TO ENGINEERS INSIDE THE COMPANY THE OUTSPOKEN MR CLARK FREQUENTLY CRITICIZED MR MCCRACKEN FOR NOT AGGRESSIVELY PURSUING NEW MARKETS IN AN INTERVIEW MR CLARK SAID HE UNDERSTOOD WHY AN ALREADY FASTGROWING COMPANY WOULD BE RELUCTANT TO JUMP INTO NEW MARKETS HE ALSO POOHPOOHED RUMORS ABOUT HIS PERSONAL RIFT WITH MR MCCRACKEN AS GREATLY EXAGGERATED HE ADDED ANYTIME YOU'VE GOT A CHAIRMANFOUNDER AND A CEO WITH ANY KIND OF RESPONSIBILITY THERE'S GOING TO BE THAT KIND OF SPECULATION SILICON GRAPHICS WILL NAME A SUCCESSOR WHEN ITS BOARD MEETS NEXT MONDAY TUESDAY AND WEDNESDAY THE COMPANY ANNOUNCED MR CLARK'S DEPARTURE AFTER THE CLOSE YESTERDAY TWO DAYS AFTER MR CLARK ALERTED FELLOW BOARD MEMBERS IN AN EVENING MEETING IN AFTERMARKET TRADING ON THE NEW YORK STOCK EXCHANGE SILICON GRAPHICS SHARES SLIPPED TO 24 DOWN 75 CENTS OR 3 SALOMON BROTHERS ANALYST JEFF CANIN SPECULATED THAT INVESTORS OVERREACTED ERRONEOUSLY THINKING THAT MR CLARK TRADITIONALLY THE SPOKESMAN FOR THE COMPANY WAS ALSO RESPONSIBLE FOR DAYTODAY OPERATIONS WHILE ANALYSTS HAD EXPECTED MR CLARK TO STEP DOWN AS CHAIRMAN THEY WERE SURPRISED THAT HE TOOK THE FURTHER STEP OF RELINQUISHING HIS SEAT ON THE BOARD MR CLARK SAID HE DECIDED TO DO THAT SO HE COULD CONCENTRATE ON HIS NEW VENTURE HE HAD MULLED QUITTING FOR AT LEAST SIX MONTHS BUT DECIDED TO ACT AFTER EXTENDED MEDIA COVERAGE OF WHAT HE CALLS THE INFORMATION SUPER HYPEWAY I KEEP THINKING THE ONE THING THAT ISN'T SERIOUSLY BEING ADDRESSED HERE IS APPLICATIONS SOFTWARE WHICH ALLOWS CONSUMERS TO USE THEIR TELEVISIONS TO SHOP GATHER ONLINE NEWS OR TO GET VIDEOS ON DEMAND AMONG OTHER THINGS I WANT TO GRAB THAT OPPORTUNITY HE WENT TO GREAT LENGTHS TO SAY HE WOULD NOT COMPETE WITH SILICON GRAPHICS AS STEVE JOBS DID WHEN HE LEFT APPLE COMPUTER INC TO FORM NEXT INC I'M NOT GOING TO DO THAT I LOVE THIS COMPANY IT'S LIKE I'VE BUILT A HUGE FORTRESS HERE WHAT AM I GOING TO DO STEP OUTSIDE AND TURN A CANNON ON IT 9401280119 940128 SMALL STOCK FOCUS FINANCIALSECTOR STOCKS LEAD AGAIN EARNINGS REPORTS DRIVE OTHER ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK MORE GAINS IN THE INTERESTRATE SENSITIVE GROUP A SURGE IN BOND PRICES AND SOME ENCOURAGING EARNINGS REPORTS TOOK SMALLCOMPANY STOCKS BACK NEAR RECORD LEVELS FIRST INDIANA INDIANAPOLIS ROSE 3/4 TO 23 1/2 BSB BANCORP BINGHAMTON NY ADDED 3/4 TO 23 3/4 AND SUMMIT BANCORP CHATHAM NJ CLIMBED 1/4 TO 21 1/4 EARNINGS ALSO WERE KEY YESTERDAY AND SOME COMPANIES FARED VERY WELL FOLLOWING CORPORATE PROFIT REPORTS DAMARK INTERNATIONAL MINNEAPOLIS CLIMBED 2 3/4 TO 24 1/4 FOLLOWING ITS ANNOUNCEMENT LATE WEDNESDAY THAT FOURTHQUARTER EARNINGS ROSE THE MARKETER OF GENERAL MERCHANDISE SAID NET INCOME FOR THE PERIOD WAS 34 CENTS A SHARE COMPARED WITH SEVEN CENTS A YEAR EARLIER EARNINGS FOR THE LATEST QUARTER CAME IN ABOVE THE 25 CENTS FORECAST BY ANALYSTS AUTOCAM A SOUTHEAST KENTWOOD MICH METALALLOY MAKER SOARED 2 TO 18 1/2 ON IMPROVED FISCAL SECONDQUARTER EARNINGS OF 21 CENTS A SHARE INCLUDING CHARGES COMPARED WITH 12 CENTS A YEAR EARLIER INTERTAN NYSE ROSE 2 5/8 TO 7 3/8 THE BARRIE ONTARIO SELLER OF CONSUMER ELECTRONICS SAID ITS FISCAL SECONDQUARTER NET LEAPT TO 97 CENTS A SHARE FROM TWO CENTS A YEAR EARLIER CONTINUUM NYSE AN AUSTIN TEXAS SOFTWARE CONCERN ROSE 1 TO 20 3/8 THE COMPANY SAID ITS FISCAL THIRDQUARTER NET WAS 24 CENTS A SHARE ON MORE SHARES COMPARED WITH A LOSS OF TWO CENTS LAST YEAR EVEN WITH DISAPPOINTING EARNINGS INACOM STILL MANAGED TO FINISH 2 1/4 HIGHER AT 16 7/8 THE OMAHA NEB INFORMATIONTECHNOLOGY CONCERN SAID THAT ALTHOUGH FOURTHQUARTER NET OF 31 CENTS A SHARE FELL SHORT OF THE 45 CENTS REPORTED LAST YEAR AND ANALYSTS' PROJECTIONS WE'RE SEEING SIGNS THAT OUR REVENUES ARE TRENDING UP IF YOU MAKE A MISTAKE FROM AN EARNINGS STANDPOINT THIS MARKET WILL TEAR YOU APART SAID BOB MCINTYRE A SENIOR VICE PRESIDENT OF EQUITY TRADING AT PRINCIPAL EPPLER GUERIN & TURNER ONE EXAMPLE WAS HARRY'S FARMERS MARKET WHICH PLUNGED 8 3/4 OR 35 TO 16 1/2 LATE WEDNESDAY THE ATLANTA OPERATOR OF SUPERMARKET MEGASTORES SAID IT EXPECTS TO REPORT A PRETAX LOSS OF 45 MILLION TO 55 MILLION FOR ITS FISCAL FOURTH QUARTER ENDING FEB 2 SOFTWARE SPECTRUM FELL 5 3/4 OR 25 TO 17 AFTER A DECLINE IN FISCAL THIRDQUARTER NET THE GARLAND TEXAS SOFTWARE RESELLER SAID EARNINGS FOR THE PERIOD FELL TO 41 CENTS A SHARE FROM 48 CENTS A YEAR EARLIER PIPER JAFFRAY CUT ITS RATING ON SOFTWARE SPECTRUM TO REASONABLY PRICED FROM BUY CITING THE DISAPPOINTING EARNINGS REPORT SILICONIX A SANTA CLARA CALIF SEMICONDUCTOR COMPANY FELL 2 OR 22 TO 7 1/4 THE COMPANY SAID ITS 1993 OPERATING PROFIT WAS 64 CENTS A SHARE IT HAD NET INCOME OF 46 CENTS FOR 1992 NEW ISSUE TELULAR JUMPED TO 23 FROM ITS OFFERING PRICE OF 20 A SHARE YESTERDAY THE TELECOMMUNICATIONS COMPANY BASED IN BUFFALO GROVE ILL DESIGNS DEVELOPS MANUFACTURES AND MARKETS PRODUCTS BASED ON ITS PROPRIETARY INTERFACE TECHNOLOGY O'SULLIVAN INDUSTRIES HOLDINGS NYSE CLOSED AT 24 1/8 UP 2 1/8 FROM ITS INITIAL PRICE LATE YESTERDAY OF 22 A SHARE THE LAMAR MO MAKER OF READYTOASSEMBLE FURNITURE SAID ALL OF THE SHARES ARE BEING OFFERED BY TE ELECTRONICS A TANDY SUBSIDIARY ANOTHER NEW OFFERING PLAYTEX PRODUCTS LED THE BIG BOARD'S MOSTACTIVE LIST WITH 79 MILLION SHARES SHARES OF THE PERSONALCARE PRODUCTS COMPANY STAMFORD CONN CLOSED AT 12 3/4 DOWN SLIGHTLY FROM THEIR INITIAL PRICE OF 13 A SHARE YESTERDAY AFTER THE CLOSE PLAYTEX SAID SOME OF THE PROCEEDS FROM THE OFFERING ARE EXPECTED TO GO TOWARD DEBT REDUCTION OBSERVERS SAID YESTERDAY'S FOLLOWTHROUGH TO WEDNESDAY'S RALLY SHOWED THAT LOSSES ON MONDAY AND TUESDAY WERE JUST A TIMEOUT FOR SMALLER STOCKS AFTER A STRONG RUN LAST WEEK THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCOMPANY STOCKS TRADED ON THE NASDAQ STOCK MARKET AND ON THE MAJOR EXCHANGES ROSE 082 OR 031 TO 26366 JUST BELOW ITS CLOSING RECORD OF 26380 SET FRIDAY NASDAQ ISSUES ALSO HAD A GOOD DAY THE NASDAQ COMPOSITE INDEX JUMPED 408 OR 052 TO END AT 79288 WITHIN STRIKING DISTANCE OF ITS RECORD OF 79428 SET FRIDAY TRADERS SAID LOWER INTEREST RATES KEPT THE FINANCIAL GROUP FIRM THE TREASURY'S LONG BOND ENDED NEARLY 5/8 POINT HIGHER WITH ITS YIELD DOWN TO 626 KATRINA BLECHER A VICE PRESIDENT AND A SENIOR FINANCIAL SERVICES ANALYST AT GRUNTAL & CO SAID A SELLOFF IN THE INTERESTRATESENSITIVE SECTOR HAD OCCURRED LAST WEEK AS EARNINGS CAME IN ABOVE EXPECTATIONS MOMENTUM PLAYERS HAD BEEN BUYING IN ADVANCE OF THE EARNINGS AND HAD DRIVEN UP THE GROUP MS BLECHER SAID THE ISSUES IN THE SECTOR STARTED TRENDING DOWN WHEN THE EARNINGS CAME OUT BUT ARE NOW BACK UP TO THE LEVELS THEY SHOULD BE ANALYSTS HAVE SAID RECENTLY THAT IN ORDER FOR SMALLCAP STOCKS TO CONTINUE TO MOVE HIGHER THE LEADERSHIP WOULD HAVE TO EXPAND PAST THE TECHNOLOGY GROUP THE TYPICAL MARKET LEADERS THE STRENGTH OF THE FINANCIAL STOCKS LENDS CREDENCE TO THE FAITH IN THE BULL MARKET MS BLECHER ADDED ADVANCING NASDAQ ISSUES OUTRAN DECLINERS 1631 TO 1457 ON NASDAQ NATIONAL MARKET VOLUME OF 265290500 SHARES AND TOTAL VOLUME OF 314491000 WEDNESDAY NATIONAL MARKET VOLUME HIT 269451900 SHARES AND TOTAL VOLUME WAS 316495000 NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 108 WHILE 18 HIT LOWS 9401280118 940128 CORPORATE FOCUS MCI IS RICH AMBITIOUS HEADING FOR RISKY SHOWDOWN LONGDISTANCE FIRM AND REGIONAL BELLS PLAN TO INVADE EACH OTHER'S TURF BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP IS SITTING PRETTY WITH A BOATLOAD OF CASH AND A BOLD 20 BILLION NETWORKEXPANSION PLAN BUT THE COMPANY'S FUTURE COULD TURN UGLY IN A SHOWDOWN WITH THE BABY BELLS MCI CHAIRMAN BERT C ROBERTS JR VOWS TO USE AN ENLARGED MCI NETWORK TO WAGE WAR ON THE REGIONAL BELL COMPANIES' LOCAL PHONE MONOPOLIES AND SLASH THE ACCESS FEES THEY CHARGE FOR COMPLETING LONGDISTANCE MCI CALLS MCI SAYS THESE FEES SIPHON AS MUCH AS 45 CENTS OF EVERY REVENUE DOLLAR MCI TAKES IN MCI PLANS TO BUILD FIBEROPTIC SYSTEMS INITIALLY IN 20 US CITIES FOR 2 BILLION SO CORPORATE CUSTOMERS CAN HOOK DIRECTLY TO ITS NETWORK BYPASSING THE REGIONAL BELL COMPANIES EVENTUALLY MCI WHICH LATELY HAS BEEN FLUSH WITH HUGE GAINS IN THE CONSUMER AND TOLLFREE 800 MARKET WILL EXTEND THE LOCAL NETWORKS TO MORE THAN 200 US METROPOLITAN AREAS AS PART OF A 20 BILLION GLOBAL PROJECT IT CALLS NETWORKMCI BUT THE BABY BELLS' HOLD ON LOCAL TELEPHONE SERVICE IS FORMIDABLE AND THEY HAVE AMBITIOUS PLANS OF THEIR OWN FOR GAINING NEW ENTRY INTO MCI'S LONGDISTANCE TURF IN ADDITION MCI MUST WAGE ITS MOST AGGRESSIVE NEW STRATEGY IN YEARS WITHOUT HAVING YET LINED UP FULL FINANCIAL BACKING POTENTIAL PARTNERS AMONG BIG CABLE COMPANIES ARE ALLYING LEFT AND RIGHT WITH THE BABY BELLS AND EVEN AS MCI TURNS ITS SIGHTS ON LOCAL SERVICE IT FACES TOUGHER COMPETITION IN LONGDISTANCE FROM AMERICAN TELEPHONE & TELEGRAPH WHICH SHOWS SIGNS OF A REBOUND STILL WASHINGTONBASED MCI WHOSE INITIALS STOOD FOR MONEY COMIN' IN IN THE VIEW OF ITS LATE FOUNDER WILLIAM MCGOWAN HAS SIGNIFICANT STRENGTHS ITS LONGDISTANCE BUSINESS IS CURRENTLY GROWING AT MORE THAN TWICE THE INDUSTRY RATE THANKS TO HUGE GAINS FROM THE FRIENDS & FAMILY CONSUMER SERVICE AND NEW CORPORATE BUSINESS IN THE TOLLFREE 800 AND DATATRANSMISSION MARKETS THAT POINT WAS UNDERSCORED YESTERDAY BY MCI'S FOURTHQUARTER EARNINGS REPORT WHOSE STRENGTH WAS DISGUISED BY A CHARGE YESTERDAY MCI SAID NET INCOME FELL BY 33 TO 107 MILLION OR 18 CENTS A SHARE FROM 160 MILLION OR 30 CENTS A SHARE A YEAR EARLIER ON DEC 15 MCI ANNOUNCED IT WOULD TAKE A CHARGE OF 150 MILLION AFTER RESTRUCTURING THE COMPANY CONSOLIDATING FACILITIES AND STREAMLINING ITS WORK FORCE MINUS THAT CHARGE NET WOULD HAVE GROWN TO 199 MILLION AN INCREASE OF MORE THAN 24 MCI SAID REVENUE GREW MORE THAN 13 TO 313 BILLION FROM 276 BILLION A YEAR EARLIER FOR THE YEAR MCI'S NET INCOME FELL 44 TO 582 MILLION OR 104 A SHARE FROM 609 MILLION OR 111 A SHARE A YEAR EARLIER BECAUSE OF THE QUARTERLY CHARGE PLUS EARLY DEBT RETIREMENT AND FEDERAL TAXLAW CHANGES MINUS THESE ITEMS 1993 NET WOULD HAVE TOTALED 731 MILLION A 20 INCREASE REVENUE GREW ALMOST 13 TO 1192 BILLION FROM 1056 BILLION IN NASDAQ STOCK MARKET TRADING MCI SHARES FELL 25 CENTS OR 09 TO CLOSE AT 28 YESTERDAY MCI ALSO HAS THE LOWEST COST STRUCTURE OF ANY CARRIER THAT ADVANTAGE WOULD BE ENHANCED IF MCI DELIVERS ON ITS PLANS TO BUILD THE NEW LOCAL NETWORKS SAYS JACK B GRUBMAN OF PAINEWEBBER INC HE ESTIMATES THAT THE 2 BILLION MCI PLANS TO SPEND OVER THE NEXT FOUR YEARS WILL INCREASE ITS DEPRECIATION COSTS BY ABOUT 10 A YEAR BUT MCI WOULD HAVE TO REDUCE THE ACCESS FEES IT PAYS TO THE BABY BELLS BY ONLY 2 TO OFFSET THAT INCREASE HE ESTIMATES A MERE 5 REDUCTION IN THE MORE THAN 5 BILLION A YEAR THAT MCI SPENDS ON ACCESS FEES MOREOVER WOULD LET THE NEW MCI LOCAL NETWORKS PAY FOR THEMSELVES IN ONLY A FEW YEARS EVEN IF OTHER CARRIERS DON'T SIGN UP TO USE THEM MR GRUBMAN SAYS ALTHOUGH IT WAS ANNOUNCED ONLY RECENTLY MCI'S PLOT TO TAKE ON THE BABY BELLS CAME TOGETHER IN LATE AUGUST MCI'S MR ROBERTS WAS READY TO CHART A NEW COURSE HE WAS THE KEY STRATEGIST IN THE 1970S WHO DEVISED THE IDEA FOR THE SWITCHED COMMUNICATIONS SERVICE THAT EVENTUALLY SHATTERED THE MONOPOLY OF AT&T IN THE MID1980S HE PUSHED MCI TO BUY OLD WESTERN UNION CORP TELEGRAPH CONDUITS GIVING IT CRUCIAL RIGHTSOFWAY IT WOULD LATER NEED TO RUN FIBER IN HUNDREDS OF US CITIES AND TOWNS SERVED BY LOCAL PHONE COMPANIES ONE DAY IN LATE AUGUST MR ROBERTS PHONED HIS TOP MARKETING EXECUTIVE GERRY TAYLOR THE KEY FORCE BEHIND MCI'S FRIENDS & FAMILY CAMPAIGN AND SUMMONED HIM TO THE ROBERTS HOUSE IN ANNAPOLIS MD ON CHESAPEAKE BAY ON THE WAY MR TAYLOR'S NEW PORSCHE COLLIDED WITH A LUMBER TRUCK HE HAD THE TRUCK DRIVER PUSH THE TOTALED CAR TO THE SIDE OF THE ROAD AND A BACKUP CAR FROM MCI TOOK HIM THE REST OF THE WAY OVER THE COURSE OF THE DAY THE TWO HAMMERED OUT A COLLISION COURSE OF THEIR OWN THEY CODENAMED THE NEW PLAN PROJECT DESTINY IT INCLUDED A MAJOR OVERHAUL IN MCI MANAGEMENT WHICH LEFT MR TAYLOR IN DAILY CONTROL OF 90 OF MCI'S BUSINESSES AND THE BLUEPRINT FOR MCI'S 20 BILLION PLAN TO EXPAND ITS NETWORK THEY'LL GET HELP FROM THE 43 BILLION THAT BRITISH TELECOMMUNICATIONS PLC PLANS TO INVEST IN THE COMPANY FOR A 20 STAKE THE SIXYEAR NETWORKMCI PROJECT ESSENTIALLY DOUBLES MCI'S CAPITALSPENDING PROGRAM AND CALLS FOR THE INSTALLATION OF HIGHSPEED SWITCHING AND FIBEROPTIC TRANSMISSION SYSTEMS IT ALSO WILL HAVE MCI SEEK WIRELESSSERVICES PARTNERS AND BUILD LOCAL PHONE NETWORKS BUT ONE KEY PARTNER MCI HAD HOPED FOR CABLETELEVISION COMPANIES SOON LINED UP WITH BABY BELLS MCI EXECUTIVES SAY THEY WERE NEGOTIATING TO SET UP A JOINT VENTURE WITH CABLE GIANT TELECOMMUNICATIONS INC ONLY TO HAVE TCI TURN AROUND AND ANNOUNCE A DEAL WITH BELL ATLANTIC CORP THE GIANT BELL ATLANTICTCI COMBINATION WILL GIVE THE TWO COMPANIES ACCESS TO 25 MILLION HOMES ABOUT 10 MILLION MORE HOMES THAN MCI'S CUSTOMER BASE BELL ATLANTIC AND TCI COULD VERY WELL LINK THEIR OWN FACILITIES IN A NATIONAL LONGDISTANCE NETWORK U S WEST INC AND SOUTHWESTERN BELL CORP ALSO ARE TEAMING WITH CABLE COMPANIES WHOSE NETWORKS COULD BE AN IMPORTANT PART OF NEW LONGDISTANCE NETWORKS TO RIVAL MCI THE BABY BELLS HAVE BEEN BARRED FROM THE LUCRATIVE MARKET IN THE DECADE SINCE THEY WERE FORMED IN THE BREAKUP OF THE OLD AT&T MANY INDUSTRY EXPERTS EXPECT THE BARRIERS TO FALL WITHIN A FEW YEARS WHEN THEY DO LIFE WILL BE VERY TOUGH FOR MCI PREDICTS JEFFREY MILLER A PARTNER SPECIALIZING IN TELECOMMUNICATIONS AT ANDERSEN CONSULTING MCI DOESN'T OWN THE LOCAL PHONE CUSTOMERS THE WAY THE LOCAL PHONE COMPANIES DO THE BELLS ARE TRIMMING THEIR FLABBY OPERATIONS AND TAKING MULTIBILLIONDOLLAR CHARGES TO IMPOSE MASSIVE WORKFORCE CUTS AND SHUT UNNEEDED FACILITIES THEY MAY USE THE EXTRA PROFITS AND LEANER OPERATIONS FROM THESE CUTBACKS TO DISARM THE NIMBLE MCI AND OTHER RIVALS THE REGIONAL BELL COMPANIES WOULD ENJOY NUMEROUS ADVANTAGES AS LONGDISTANCE PLAYERS NOT THE LEAST OF WHICH ARE THE PHONE LINES THAT UMBILICALLY TIE EACH LOCAL MA BELL TO CALLERS EXPERTS SUCH AS MR MILLER ENVISION BELL COMPANIES SUCH AS AMERITECH CORP OR BELL ATLANTIC HAWKING THEIR LONGDISTANCE SERVICE IN NOTICES CONVENIENTLY INSERTED IN EACH MONTHLY PHONE BILL THE BELLS COULD ALSO OFFER LEASTCOST ROUTING SERVICES TO CUSTOMERS USING THE PHONE COMPANY'S BIG COMPUTERS TO FIND THE CHEAPEST LONGDISTANCE ROUTE THAT COULD FURTHER DIVERT SOME TRAFFIC AWAY FROM MCI'S NETWORK 9401280117 940128 TECHNOLOGY & HEALTH APPLE WANTS OTHER PC MAKERS TO BUILD COMPUTERS TO USE MACINTOSH SOFTWARE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC SAID FOR THE FIRST TIME IT WANTS OTHER MANUFACTURERS TO BUILD PERSONAL COMPUTERS THAT RUN APPLE'S VAUNTED MACINTOSH SOFTWARE AT ITS ANNUAL SHAREHOLDERS MEETING ON WEDNESDAY MICHAEL SPINDLER APPLE'S CHIEF EXECUTIVE OFFICER TALKED OPENLY OF HIS EFFORTS TO PERSUADE OTHER PC MAKERS TO ESSENTIALLY SELL CLONES OF THE MACINTOSH YESTERDAY A SPOKESMAN FOR MR SPINDLER SAID THE CUPERTINO CALIF COMPANY WAS IN ACTIVE TALKS AND EXPECTED TO SIGN AT LEAST ONE AGREEMENT BEFORE THE END OF THE YEAR BUT HE SAID APPLE HASN'T FINISHED WORK YET ON A PORTABLE VERSION OF THE MACINTOSH OPERATING SYSTEM APPLE SHARES CLOSED YESTERDAY AT 34125 UP 625 CENTS IN NASDAQ STOCK MARKET TRADING SINCE INTRODUCING THE MACINTOSH A DECADE AGO APPLE HAS BEEN THE SOLE SUPPLIER OF MACHINES THAT RUN ITS SOFTWARE BUT THE BENEFITS OF CONTROLLING BOTH HARDWARE AND SOFTWARE HAVE FADED IN RECENT YEARS ESPECIALLY AS A SOFTWARE PACKAGE FROM MICROSOFT CORP CALLED WINDOWS HAS BLURRED SOME OF MACINTOSH'S BENEFITS IN THE MINDS OF MANY PC ENTHUSIASTS APPLE IS TRYING TO BOOST MACINTOSH'S POSITION BY CUTTING PRICES AND LICENSING SOFTWARE TO OTHERS COULD MAKE ITS APPROACH MORE POPULAR ENTHUSIASTS WELCOMED THE PROSPECT OF MACINTOSH CLONES THEY HAVE TO DO IT THEY HAVE NO CHOICE SAID DAVID WINER PRESIDENT OF USERLAND INC WHICH SUPPLIES SOFTWARE FOR THE MACINTOSH BESIDES SPARKING THE CREATION OF MORE MACINTOSH SOFTWARE CLONES WOULD INCREASE THE VARIETY OF HARDWARE APPLE FOR INSTANCE HAS YET TO INTRODUCE A POCKETSIZE COMPUTER SUCH AS ONE SOLD BY HEWLETTPACKARD CO BUT PC MAKERS SEEM UNDERWHELMED BY APPLE'S LICENSING OFFER MR SPINDLER INDICATED APPLE HAD FAILED IN EARLIER EFFORTS TO PERSUADE MANUFACTURERS TO COUPLE MACINTOSH SOFTWARE WITH MACHINES BUILT AROUND INTEL CORP'S PROCESSORS COMPAQ COMPUTER CORP AND DELL COMPUTER CORP ARE WIDELY BELIEVED TO BE AMONG THOSE WHO BRUSHED OFF APPLE BOTH COMPANIES DECLINED TO COMMENT AN INDUSTRY EXECUTIVE FAMILIAR WITH THE NEGOTIATIONS SAID INTERNATIONAL BUSINESS MACHINES CORP ALSO REJECTED APPLE'S PLEA BUT AN IBM SPOKESMAN SAID THE COMPUTER GIANT WOULD CONSIDER OFFERING MACINTOSH SOFTWARE AS AN OPTION TO CUSTOMERS WHO PURCHASE ITS POWER PC COMPUTERS IF APPLE COMPLIES WITH INDUSTRY STANDARDS MR SPINDLER TOLD SHAREHOLDERS HE WANTS PC MAKERS TO CONSIDER EMBRACING THE MACINTOSH IN COMBINATION WITH THE NEW POWER PC PROCESSOR WHICH APPLE IS DEVELOPING WITH IBM AND MOTOROLA INC APPLE MAY BE A NUMBER OF YEARS LATE BECAUSE THERE'S SUCH AN ENTRENCHED BUSINESS IN MICROSOFTINTEL PCS SAID MAL RANSOM A VICE PRESIDENT AT PACKARD BELL ELECTRONICS CO A BIG PC MAKER WE WOULD WANT TO MAKE SURE DEMAND EXISTED BEFORE IT MADE SENSE TO DIVERT OUR EFFORTS MR SPINDLER ISN'T HELPING APPLE'S PROSPECTS BY DILLYDALLYING WITH PLANS FOR THE PROPOSED MACINTOSH CLONES SAY CRITICS BEFORE APPLE EARNS OUR ATTENTION WITH TALK OF CLONES IT HAS TO CONVINCE US IT WILL DO SOMETHING SIGNIFICANT IN TERMS OF LICENSING MACINTOSH SOFTWARE SAID STEVEN LEVY AUTHOR OF INSANELY GREAT A HISTORY OF THE MACINTOSH SO FAR APPLE ONLY HAS BEEN TEASING US A SPOKESMAN FOR MR SPINDLER SAID APPLE WAS INTENT ON SHARING THE MACINTOSH SOFTWARE WITH OTHER PC MAKERS BUT THAT HE HASN'T DECIDED ON A SPECIFIC APPROACH YET LAURIE HAYS AND KYLE POPE CONTRIBUTED TO THIS ARTICLE 9401280116 940128 BUSINESS BRIEF MEDIA GENERAL INC NET INCOME INCREASED 20 IN FISCAL FOURTH QUARTER MEDIA GENERAL INC SAID FISCAL FOURTHQUARTER NET INCOME JUMPED 20 ON CONTINUED IMPROVEMENT IN NEWSPAPER AND BROADCASTTELEVISION OPERATIONS FOR THE QUARTER ENDED DEC 26 THE RICHMOND VA MEDIA COMPANY REPORTED EARNINGS OF 91 MILLION OR 34 CENTS A SHARE COMPARED WITH 76 MILLION OR 29 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 51 TO 1565 MILLION FROM 1489 MILLION J STEWART BRYAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT EXCEPT FOR NEWSPRINT PRICING WHICH CONTINUES A DOWNWARD TREND ECONOMIC PROSPECTS APPEAR MORE FAVORABLE FOR 1994 THAN FOR THE PAST SEVERAL YEARS FOR THE YEAR NET INCOME ROSE TO 257 MILLION OR 98 CENTS A SHARE UP 35 FROM 19 MILLION OR 73 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE WAS UP 4 TO 6008 MILLION IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING MEDIA GENERAL SHARES WERE UNCHANGED AT 27625 9401280115 940128 BUSINESS BRIEF SCHERINGPLOUGH CORP STRONG ALLERGY DRUG SALES BOOST 4THPERIOD PROFIT 13 SCHERINGPLOUGH CORP SAID STRONG SALES OF NEW ALLERGY DRUGS HELPED TO LIFT FOURTHQUARTER EARNINGS 13 TO 1889 MILLION OR 98 CENTS A SHARE FROM 1677 MILLION OR 84 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 72 TO 107 BILLION FROM 9944 MILLION FOR THE FULL YEAR THE MADISON NJ DRUG COMPANY HAD NET INCOME OF 7308 MILLION OR 375 A SHARE UP 1 FROM 7204 MILLION OR 360 A SHARE IN 1992 THE 1993 RESULTS INCLUDED A CHARGE OF 942 MILLION OR 48 CENTS A SHARE FOR A NONCASH ACCOUNTING CHANGE FOR RETIREMENT BENEFITS WITHOUT THE CHARGE THE COMPANY SAID EARNINGS WOULD HAVE GROWN 18 SALES ROSE 7 TO 434 BILLION FROM 406 BILLION SCHERING SAID SALES WOULD HAVE RISEN 9 EXCLUDING THE EFFECTS OF FOREIGNCURRENCY EXCHANGE SCHERING SAID ITS DOMESTIC SALES OF PRESCRIPTION DRUGS ROSE 10 IN THE YEAR LED BY ITS NEW CLARITIN MEDICINE FOR HAY FEVER AND ITS VANCENASE LINE OF ALLERGY PRODUCTS IT EXPECTS THAT 1994 WILL ONCE AGAIN PRODUCE SOLID EARNINGS GROWTH 9401280114 940128 TECHNOLOGY & HEALTH KAISER PERMANENTE WILL ALLOW MEMBERS TO GET CARE FROM NONPLAN PHYSICIANS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL IN A DEPARTURE FROM LONGSTANDING POLICY KAISER PERMANENTE THE BIG HEALTH MAINTENANCE ORGANIZATION WILL ALLOW ITS MEMBERS TO GET MEDICAL CARE FROM NONKAISER DOCTORS ITS DECISION TO PROVIDE WHAT ARE CALLED POINTOFSERVICE OPTIONS REFLECTS GROWING PRESSURE FROM EMPLOYERS TO REMOVE A MAJOR HURDLE THAT DISCOURAGES EMPLOYEES FROM CHOOSING HMOS FOR THEIR HEALTH CARE MANY EMPLOYEES REJECT MANAGEDCARE PLANS BECAUSE OF CONCERN THEY WILL HAVE TO END LONGSTANDING RELATIONSHIPS WITH DOCTORS OR LOSE THE ABILITY TO SEEK SECOND OPINIONS FROM PHYSICIANS OUTSIDE THE HEALTH PLAN FOR KAISER IT IS ALSO AN EFFORT TO INCREASE ITS SHARE OF A COMPETITIVE MARKETPLACE THIS IS A STEPPING STONE A WAY OF GRADUALLY INTRODUCING PEOPLE TO KAISER THAT DOESN'T HAVE THE FEAR FACTOR THAT SOMETIMES AN ANNUAL DECISION CAN HAVE SAID LINDA ARMSTRONG MANAGER OF PRODUCT DEVELOPMENT FOR KAISER PERMANENTE'S NORTHEAST REGION IN HARTFORD CONN UNDER THE ARRANGEMENTS MEMBERS MAY GET CARE FROM EITHER KAISER PHYSICIANS AND FACILITIES OR CHOOSE ANY DOCTOR OUTSIDE THE HEALTH PLAN THOSE WHO GO OUTSIDE THE PLAN WILL PAY A HIGHER SHARE OF THE MEDICAL BILL AND HIGHER DEDUCTIBLES PREMIUMS THAT EMPLOYERS PAY FOR THE POINTOFSERVICE OPTION WILL AVERAGE ABOUT 10 HIGHER THAN FOR EMPLOYEES WHO AGREE TO GET ALL THEIR CARE WITHIN KAISER MICHAEL M DUDLEY A VICE PRESIDENT WHO HEADS THE HMO'S POINTOFSERVICE EFFORT SAID THE DECISION CAME AFTER SEVERAL YEARS OF DEBATE OVER CONCERNS THAT ALLOWING MEMBERS TO GO OUTSIDE THE PLAN WOULD COMPROMISE KAISER'S ABILITY TO MANAGE BOTH THE COST AND QUALITY OF ITS SERVICES BUT THE HMO HAS LOST SOME CUSTOMERS WHO WANTED THE FLEXIBILITY OF POINTOFSERVICE AND MANY EMPLOYERS DON'T EVEN GIVE WORKERS THE CHOICE OF PLANS THAT LACK THE OPTION WE WERE LISTENING TO WHAT THE MARKET WAS SAYING AND DECIDED TO GO IN THIS DIRECTION HE SAID THE DECISION PREDATED THE CLINTON ADMINSTRATION'S HEALTH REFORM PLAN WHICH WOULD REQUIRE HEALTH PLANS TO OFFER SIMILAR FLEXIBILITY TO PROVIDE THE SERVICES KAISER IS ESTABLISHING ALLIANCES WITH TRADITIONAL INSURANCE COMPANIES IN SEVERAL US REGIONS KAISER BASED IN OAKLAND CALIF ISN'T THE FIRST HMO TO OFFER A POINTOFSERVICE OPTION BUT AS THE NATION'S LARGEST PREPAID HEALTH PLAN WITH 66 MILLION MEMBERS ITS ACTIONS HAVE ENORMOUS INFLUENCE IN THE HEALTHCARE MARKET SEPARATELY THE CALIFORNIA NURSES ASSOCIATION SAID ITS MEMBERS RATIFIED A THREEYEAR CONTRACT WITH KAISER ENDING THE POSSIBILITY OF A STRIKE AT KAISER'S NORTHERN CALIFORNIA HOSPITALS AND CLINICS 9401280113 940127 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9401280112 940128 BUSINESS BRIEF AIR CANADA SERVICE TO KANSAI AIRPORT IS ACCESS TO JAPAN MARKET CANADIAN TRANSPORT MINISTER DOUGLAS YOUNG SAID HE INTENDS TO DESIGNATE AIR CANADA TO SERVE THE NEW KANSAI AIRPORT IN OSAKA GIVING THE MONTREAL CARRIER LONGSOUGHT ACCESS TO THE JAPANESE MARKET CANADIAN AIRLINES INTERNATIONAL A UNIT OF PWA CORP HAS BEEN THE ONLY CANADIAN CARRIER SERVING JAPAN THE CALGARY ALBERTA AIRLINE CALLED THE GOVERNMENT'S DECISION EXTREMELY DISAPPOINTING THE ANNOUNCEMENT IN OTTAWA CAME A DAY AFTER AIR CANADA SAID IT WOULD DROP LITIGATION THAT HAS BLOCKED FINANCIALLY TROUBLED CANADIAN AIRLINES FROM CONCLUDING A PROPOSED ALLIANCE WITH AMR CORP THE FORT WORTH TEXAS PARENT OF AMERICAN AIRLINES INDUSTRY OBSERVERS SPECULATE THAT AIR CANADA ABANDONED THE LEGAL FIGHT IN RETURN FOR ACCESS TO JAPAN THOUGH MR YOUNG ON WEDNESDAY DENIED SUCH A LINK 9401280111 940128 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION JUST FOR FEET INC AN INITIAL OFFERING OF 1750000 COMMON SHARES VIA MONTGOMERY SECURITIES AND ROBINSONHUMPHREY CO KAISER ALUMINUM CORP AN AMENDED OFFERING OF EIGHT MILLION PREFERRED INCREASED DIVIDEND EQUITY SHARES SECURITIES OR PRIDESSM VIA MERRILL LYNCH & CO BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP PAINEWEBBER INC AND SALOMON BROTHERS INC NPS PHARMACEUTICALS INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA PAINEWEBBER AND VECTOR SECURITIES INC ROWE FURNITURE CORP AN OFFERING OF 1402968 COMMON SHARES VIA JC BRADFORD & CO AND INTERSTATE/JOHNSON LANE CORP SANCTUARY WOODS MULTIMEDIA CORP AN OFFERING OF UP TO 4015112 COMMON SHARES AT 5625 A SHARE 9401280110 940128 DESPITE RECURRENCE OF NANNYGATES' LAW IS UNCHANGED BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS REMAINS DEADLOCKED ON EASING INDIVIDUALS' TAX LIABILITY FOR THEIR DOMESTIC WORKERS EVEN AFTER BOBBY RAY INMAN'S ILLFATED CABINET NOMINATION PROVIDED YET MORE EVIDENCE OF COMPLIANCE PROBLEMS IF I EVER SAW A SITUATION WHERE THERE WAS GRIDLOCK THIS IS IT SAID REP BARBARA KENNELLY A CONNECTICUT DEMOCRAT ON THE WAYS AND MEANS COMMITTEE WHO HAS PROPOSED A MEASURE TO REMEDY THE MATTER IT'S SO OBVIOUS HOW TO FIX IT SHE ADDED AND YET NOTHING HAPPENS ACTION HAS BEEN BLOCKED LARGELY BY PROCEDURAL HANGUPS IN THE HOUSE AND SENATE TAX COMMITTEES EVEN THOUGH IT'S BEEN A YEAR SINCE NANNYGATE GAVE RISE TO A BIPARTISAN CONSENSUS IN FAVOR OF CHANGING THE LAW LAST JANUARY PRESIDENT CLINTON'S NOMINATION OF ZOE BAIRD TO BE ATTORNEY GENERAL WAS TORPEDOED BY REPORTS THAT SHE HADN'T PAID SOCIAL SECURITY TAXES FOR DOMESTIC WORKERS AS SOME OTHER NOMINEES MOST RECENTLY MR INMAN HAVE ACKNOWLEDGED SIMILAR LAPSES MANY LAWMAKERS HAVE AGREED THAT THE CURRENT THRESHOLD FOR TAX LIABILITY IS UNREALISTICALLY LOW ENCOURAGING NONCOMPLIANCE CURRENTLY EMPLOYERS MUST PAY SOCIAL SECURITY TAXES FOR HOUSEHOLD WORKERS WHO ARE PAID AT LEAST 50 A QUARTER AN AMOUNT THAT COULD COVER EVEN THOSE WHO OCCASIONALLY MOW THE LAWN OR BABYSIT REP KENNELLY AND REPS CARRIE MEEK D FLA AND AMO HOUGHTON R NY WANT TO RAISE THE THRESHOLD TO 800 A YEAR BUT WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL DOESN'T WANT TO SEND A TAX BILL TO THE SENATE FOR FEAR THAT SENATORS WILL LOAD IT UP WITH UNRELATED TAX AMENDMENTS AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D ILL HAS BEEN WAITING TO INCLUDE A NANNYTAX PROVISION IN A PACKAGE OF SOCIAL SECURITY CHANGES HE'S PROPOSED THE CHAIRMEN'S SAME CONCERNS HELPED HOLD UP ACTION IN 1993 I WAS TOLD WAIT UNTIL NEXT YEAR' REP KENNELLY SAID WELL THE NEXT YEAR IS HERE IN 1993 THE HOUSE INCLUDED IN ITS VERSION OF BUDGET LEGISLATION A PROVISION RAISING THE THRESHOLD FOR PAYING SOCIAL SECURITY TAXES TO 1800 A YEAR IT WAS DROPPED IN THE SENATE ON TECHNICAL GROUNDS REP KENNELLY AND OTHERS CONTEND THAT THE 1800 THRESHOLD IS SO HIGH THAT IT WOULD THREATEN THE SOCIAL SECURITY ELIGIBILITY OF MANY LOWWAGE DOMESTIC WORKERS CITING GOVERNMENT FIGURES SHE HAS ARGUED THAT SOME EMPLOYERS CURRENTLY PAYING SOCIAL SECURITY WOULD STOP DOING SO THE LAWMAKER SAID SHE HAD HOPED THE INMAN CASE WOULD GIVE IMPETUS TO HER OWN PROPOSAL HOW MANY TIMES DOES THIS HAVE TO COME UP BEFORE WE ACT SHE SAID 9401280109 940128 BUSINESS BRIEF MINNESOTA MINING & MANUFACTURING FOURTHQUARTER PROFIT FELL SENDING SHARES DOWN 4125 MINNESOTA MINING & MANUFACTURING CO HURT BY ITS BIG EXPOSURE TO EUROPE'S DEPRESSED ECONOMY AND BY NEGATIVE CURRENCY TRANSLATION REPORTED A SLIGHT DECLINE IN FOURTHQUARTER EARNINGS THE ST PAUL MINN INDUSTRIALPRODUCTS COMPANY'S NET DIPPED 1 TO 286 MILLION OR 133 A SHARE FROM THE YEAREARLIER 289 MILLION OR 132 A SHARE THE DROP CAME DESPITE A MODERATE 32 INCREASE IN SALES TO 348 BILLION FROM 338 BILLION PERSHARE RESULTS REFLECT A DECLINE IN THE NUMBER OF SHARES OUTSTANDING THE RESULTS WERE HELPED BY GOOD VOLUME GROWTH AND PRODUCTIVITY IMPROVEMENTS SAID LD DESIMONE 3M'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9401280108 940128 CREDIT RATINGS OKLAHOMA GAS & ELECTRIC CO OKLAHOMA CITY STANDARD & POOR'S CORP PLACED ITS RATINGS OF THIS UTILITY ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE MOVE IS PENDING A MEETING WITH THE COMPANY'S MANAGEMENT TO DISCUSS PLANS TO REDUCE COSTS FOLLOWING THE ISSUANCE OF A FINAL RATE ORDER BY THE OKLAHOMA CORPORATION COMMISSION ABOUT 960 MILLION OF SECURITIES IS AFFECTED THE ORDER TO BE ISSUED IN A FEW WEEKS MAY REQUIRE RATE REDUCTIONS OF 67 MILLION FOR THE UTILITY AND 10 MILLION TO 15 MILLION FOR ITS GAS PIPELINE SUBSIDIARY ENOGEX AN OKLAHOMA GAS SPOKESMAN SAID COMPANY OFFICIALS KNEW THE RATE DECISION WOULD BE DAMAGING BUT THAT UNTIL THE COMMISSION'S ORDER IS FINAL IT'S IMPOSSIBLE TO MAKE ANY DECISION REGARDING COST CUTTING AT THE UTILITY 9401280107 940128 BUSINESS BRIEF INGERSOLLRAND CO FOURTHQUARTER NET SOARED PUMP VENTURE IS CREDITED INGERSOLLRAND CO CITING IMPROVEMENT FROM RESTRUCTURING ITS PUMP VENTURE WITH DRESSER INDUSTRIES INC SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED EARNINGS TOTALED 678 MILLION OR 65 CENTS A SHARE COMPARED WITH 324 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED A 70 MILLION PRETAX CHARGE FOR RESTRUCTURING OF THE 51OWNED INGERSOLLDRESSER PUMP CO VENTURE SALES WERE FLAT AT 109 BILLION FOR THE YEAR THE COMPANY HAD NET OF 1425 MILLION OR 136 A SHARE COUNTERING A YEAREARLIER LOSS OF 2344 MILLION OR 225 A SHARE SALES GREW 63 TO 402 BILLION FROM 378 BILLION INGERSOLLRAND WOODCLIFF LAKE NJ MAKES BEARINGS DOOR HARDWARE TOOLS CONSTRUCTION EQUIPMENT AND OTHER MACHINERY DRESSER INDUSTRIES DALLAS IS AN ENERGYSERVICES CONCERN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE INGERSOLLRAND CLOSED AT 3950 UP 225 9401280106 940128 BUSINESS BRIEFS SPORT SUPPLY GROUP INC ACQUIRED THE ASSETS OF SUNSHINE GOLF INC TUCSON ARIZ FOR AN UNDISCLOSED SUM IONICS INC COMPLETED THE ACQUISITION OF THE BUSINESS AND ASSETS OF RESOURCES CONSERVATION CO A UNIT OF HALLIBURTON CO IN A PACT FOR 11 MILLION PLUS CONTINGENT PAYMENTS OF AS MUCH AS 3 MILLION RIVERSIDE FOREST PRODUCTS LTD ENTERED A DEFINITIVE AGREEMENT FOR THE ACQUISITION OF JACOBSEN BROS FOREST PRODUCTS LTD RIVERSIDE ANNOUNCED IN DECEMBER THAT IT WOULD BUY JACOBSEN FOR 63 MILLION CANADIAN DOLLARS US48 MILLION BROADCAST TELEVISION STATIONS IN MEMPHIS TENN LITTLE ROCK ARK AND MOBILE ALA HAVE BECOME AFFILIATED WITH THE PARAMOUNT NETWORK A UNIT OF PARAMOUNT COMMUNICATIONS CO AND CHRISCRAFT INDUSTRIES INC 9401280105 940128 LETTERS TO THE EDITOR URGENCY IS PRESUMED IF RATE IS DOUBLED IN YOUR JAN 4 EDITORIAL POSTAL BULLY COMPLAINING ABOUT POSTAL SERVICE ENFORCEMENT OF RULES LIMITING PRIVATE CARRIERS YOU CLAIM THAT CUSTOMERS OF FEDERAL EXPRESS AND OTHER PRIVATE SERVICES MUST PAY AT LEAST TWICE THE COST OF A FIRSTCLASS STAMP AND YOUR SHIPMENT MUST BE CONSIDERED URGENT' YOUR CLAIM IS FALSE SURPRISINGLY SO SINCE THIS IS THE SECOND OCCASION IN RECENT WEEKS ON WHICH YOU HAVE ADDRESSED THIS ISSUE THE LAW AT WHICH YOU TAKE SUCH UMBRAGE 39 CFR SEC 3206 SAYS SOMETHING ALTOGETHER DIFFERENT SUBSECTION C OF THAT REGULATION STATES THAT IF A CUSTOMER PAYS DOUBLE THE POSTAL RATE OR 3 WHICHEVER IS GREATER HIS PACKAGE WILL BE CONCLUSIVELY PRESUMED TO BE URGENT IN OTHER WORDS THERE'S NO SEPARATE NEED TO PROVE URGENCY IN THAT CASE OF COURSE A CUSTOMER MAY PAY LESS THAN THAT IN WHICH CASE URGENCY MUST BE SHOWN AS PROVIDED IN SUBSECTION B 9401280104 940128 LETTERS TO THE EDITOR MOBIL EVER NIMBLE WHEN YOUR REPORTER WAS RESEARCHING THE DEC 29 PAGEONE ARTICLE SMALL MANUFACTURERS DISPLAY THE NIMBLENESS THE TIMES REQUIRE HE ASKED MOBIL TO RESPOND TO A CLAIM BY ULTRA PAK INC A PLASTIC FOODCONTAINER MANUFACTURER THAT IT DELIVERS CUSTOMIZED PRODUCTS IN THREE DAYS ABOUT ONETHIRD THE TIME IT USUALLY TAKES FOR ITS LARGER COMPETITORS MOBIL AND TENNECO TO DELIVER OFFTHESHELF CONTAINERS YOU PRINTED THE CLAIM BUT NOT MOBIL'S RESPONSE AGAIN MOBIL SELLS THROUGH DISTRIBUTORS WHO ROUTINELY SERVICE THEIR CUSTOMERS ON A DAILY BASIS MUCH QUICKER THAN THREE DAYS AND WE WILL SHIP STOCK PRODUCT DIRECT TO AN END USER TO FULFILL RUSH NEEDS IN 24 HOURS OR LESS TO MY MIND THAT MAKES MOBIL MORE NIMBLE THAN ULTRA PAK 9401280103 940128 REVIEW & OUTLOOK EDITORIAL CATCHING FLAK PALACES TO SPORT CONTINUE TO RISE ACROSS THE COUNTRY MOST GET BUILT WITH TAX DOLLARS THAT SUPPOSEDLY WEREN'T AVAILABLE FOR TRADITIONAL PUBLIC SERVICES SOMETHING'S NOT QUITE RIGHT ABOUT THIS GAME WHICH MAKES THE CURRENT BROUHAHA IN PHOENIX WORTH WATCHING THE LOCAL BUSINESS AND POLITICAL ESTABLISHMENT THERE AS IN MANY OTHER CITIES WOULD DO NEARLY ANYTHING TO BE GIVEN A NEW PROFESSIONAL FRANCHISE IN THIS CASE FROM MAJOR LEAGUE BASEBALL IN THE HOPES OF LURING ONE THEY COOKED UP A DEAL WHEREBY JERRY COLANGELO OWNER OF THE SUNS BASKETBALL TEAM WOULD LINE UP THE TRIBUTE REQUIRED TO BUY INTO BASEBALL AND THE MARICOPA COUNTY TAXPAYERS WITHOUT BEING ASKED WOULD COUGH UP 240 MILLION FOR A RETRACTABLE DOMED STADIUM A FUNNY THING HAPPENED ON THE WAY TO THE BALLGAME THE TAXPAYERS STARTED A RHUBARB DESPITE THE USUAL SHILLING FOR THE PROJECT BY THE LOCAL MEDIA AND A LOT OF TALK ABOUT REVIVING DOWNTOWN PHOENIX A LARGE PART OF THE CITIZENRY BELIEVES IT'S BEING ASKED TO SUBSIDIZE A SEVENTHINNING STRETCH BY MR COLANGELO AND HIS ASSOCIATES THANKS TO A BILL SNUCK THROUGH THE STATE LEGISLATURE A FEW YEARS AGO THE TAXPAYERS APPARENTLY WOULD BE DENIED A VOTE ON THE SALESTAX INCREASE THAT WOULD FUND THE STADIUM WE RECALL THIS PRACTICE CREATING A NEW SPORT A FEW HUNDRED YEARS AGO IN BOSTON HARBOR BUT BEFORE THE MARICOPA SUPERVISORS COULD MEET TO ICE THE PACT THE FLOOD OF PROTESTING PHONE CALLS WAS SUBSTANTIATED BY A POLL THAT SHOWED 5930 VOTER OPPOSITION THE SUPERVISORS CANCELED THEIR SESSION AND HAVE BEEN BACK AT THE DRAWING BOARD THE DECIDING VOTE ON THE BODY JIM BRUNER WHO WANTS TO GRAB AN OPEN REPUBLICAN CONGRESSIONAL SEAT THIS FALL HAS RETREATED TO THE DUGOUT TO CONSIDER A LINEUP CHANGE THE BRONX CHEERS FOR THE NEW STADIUM FROM RESIDENTS OF MARICOPA COUNTY ARE EXCEPTIONAL IN A SPORTSMAD COUNTRY NO ONE WOULD DENY THE ENTHUSIASM THAT A LOCAL SPORTS TEAM SOMETIMES GENERATES BUT WE THINK THE FANS DESERVE FULLER DISCLOSURE ABOUT THE FINANCING FOR MANY OF THE STADIUMS IN THE CASES OF ST PETERSBURG AND ST LOUIS BUILT ON SPEC FOR TEAMS THAT HAVEN'T BEEN GRANTED THIS IS STILL A PRETTY CONSERVATIVE PART OF THE WORLD AND THERE'S AN OBJECTION TO SOCIALIZED BASEBALL SAYS WILLIAM CHESHIRE AN EDITORIAL COLUMNIST WHO HAS BUCKED THE PROSTADIUM PARTY LINE AT THE ARIZONA REPUBLIC ALSO TAXPAYERS AROUND PHOENIX HAVE EXPERIENCE IN RESISTING SUCH MACHINATIONS BY THE LOCAL ELITE WHICH IS WHY THE NOVOTE CLAUSE WAS PUT THROUGH THE LEGISLATURE THE TAXSUBSIDY TEAM MAY YET COME UP WITH THE RIGHT SUCKER PITCH BUT FOR NOW THEY'RE GETTING HAMMERED PRETTY HARD IN THE ARIZONA DESERT FANS ELSEWHERE SHOULD TUNE IN 9401280101 940128 HEALTH FIREARMS GAIN ON CAR CRASHES AS TOP KILLER BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA FIREARMS HAVE ALMOST REPLACED MOTORVEHICLE CRASHES AS THE LEADING CAUSE OF INJURYRELATED DEATH IN THE US NEW FEDERAL STUDIES SAY FOR DECADES MOTORVEHICLE ACCIDENTS HAVE CLAIMED MORE LIVES THROUGH INJURY THAN ANY OTHER CAUSE BUT FROM 1985 THROUGH 1991 THE DEATH RATE FROM SUCH ACCIDENTS FELL 10 WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED 14 ACCORDING TO REPORTS ISSUED BY THE NATIONAL CENTER FOR HEALTH STATISTICS AND THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE TRENDS WHICH ACCELERATED BETWEEN 1988 AND 1991 MEAN THAT FIREARM INJURIES COULD BECOME THE NATION'S LEADING CAUSE OF INJURY DEATH WITHIN THE NEXT TWO TO THREE YEARS IN 1991 ALONE ACCORDING TO THE REPORTS SIX STATES CALIFORNIA NEW YORK TEXAS LOUISIANA NEVADA AND VIRGINIA AS WELL AS THE DISTRICT OF COLUMBIA HAD MORE FIREARM DEATHS THAN MOTORVEHICLE DEATHS AND ALREADY FIREARMS CAUSE MORE DEATHS AMONG PEOPLE AGED 25 TO 34 THAN ANY OTHER INJURY PREVIOUS STUDIES HAVE NOTED THE EXPLODING NUMBER OF GUNRELATED DEATHS IN SELECTED GROUPS PARTICULARLY AMONG YOUNG BLACK MALES BUT THE NEW REPORTS ARE THE FIRST TO HIGHLIGHT THE BREADTH OF THE PROBLEM WE'VE JUST BEGUN TO FOCUS ON FIREARM DEATHS AND VIOLENCE AS A HEALTH ISSUE SAID JIM MERCY ACTING DIRECTOR OF THE DIVISION OF VIOLENCE PREVENTION AT THE CDC WHILE LEGISLATORS AND HEALTH OFFICIALS HAVE MADE PROGRESS IN REDUCING THE FATALITY RATE FROM MOTORVEHICLE ACCIDENTS HE SAID THERE'S BEEN LITTLE IF ANY SYSTEMATIC APPROACH TO PREVENTING FIREARM INJURIES THE NEW STATISTICS WILL LIKELY ADD FUEL TO THE DEBATE ON HOW TO STEM VIOLENCE IN A RECENT WALL STREET JOURNAL/NBC POLL 93 OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY FOR ELECTED OFFICIALS JUST 67 CITED HEALTH CARE INDEED PRESIDENT CLINTON IN HIS STATE OF THE UNION ADDRESS TUESDAY EVENING PROMISED TO GIVE THE ISSUE OF VIOLENCE NEAREQUAL BILLING WITH HIS TOP PRIORITY HEALTHCARE REFORM THE REPORTS ISSUED YESTERDAY FOUND THAT IN 1991 THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE 43536 PEOPLE DIED FROM INJURIES IN MOTORVEHICLE ACCIDENTS WHILE 38317 PEOPLE DIED FROM INJURIES TIED TO FIREARMS OF THE LATTER 47 WERE HOMICIDES 48 WERE SUICIDES AND 4 WERE CATEGORIZED AS UNINTENTIONAL DEATHS THE NEXT LEADING CAUSES OF DEATH BY INJURY WERE FALLS POISONINGS DROWNINGS AND FIRES AND BURNS THE GREATEST INCREASES IN FIREARM DEATHS ACCORDING TO THE REPORTS OCCURRED AMONG ADOLESCENTS AND YOUNG ADULTS FROM 1988 TO 1991 THE MORTALITY RATE FROM FIREARM INJURIES JUMPED 40 AMONG INDIVIDUALS AGED 15 TO 24 AMONG AMERICANS AGED 25 TO 34 THE RATE INCREASED 8 GIVEN THE DEEP AND COMPLEX ROOTS OF VIOLENCE SAID DR MERCY AT THE CDC ANY EFFORTS TO REDUCE THE NUMBER OF DEATHS LINKED TO FIREARMS MAY PROVE EQUALLY INVOLVED BUT THE CDC CALLED YESTERDAY FOR A MASSIVE EDUCATION PROGRAM AMONG OTHER STEPS TO HELP PREVENT SUCH INJURIES OTHER RECENT STUDIES HAVE SHOWN THAT THE SIMPLE PRESENCE OF A GUN IN A HOME IS LINKED TO AN APPROXIMATELY FIVEFOLD INCREASE IN THE RISK OF SUICIDE AND A THREEFOLD INCREASE IN THE RISK OF HOMICIDE FOR HOUSEHOLD MEMBERS 9401280100 940128 LEISURE & ARTS BOOKSHELF TRISTAN AND ISOLDE IN RIO AND ON THE ROAD BY BROOKE ALLEN JOHN UPDIKE HAS ALWAYS SHARED WITH HIS HERO VLADIMIR NABOKOV A FASCINATION WITH THE RAVISHED VIRGIN THAT IS THE NEW WORLD THE TRAGIC AND FOOLISH HISTORY OF THE DESPOLIATION PROVIDES AN AUDIBLE COUNTERPOINT IN MR UPDIKE'S TALES OF MODERN LIFE FROM RABBIT RUN TO MEMORIES OF THE FORD ADMINISTRATION IN HIS NEW NOVEL BRAZIL KNOPF 260 PAGES 23 MR UPDIKE REFLECTS MORE FANCIFULLY ON AMERICA'S PAST LOADING HIS NARRATIVE WITH LEGEND AND METAPHOR IN TELLING HIS STORY HE BOLDLY SETS FORTH INTO THE TREACHEROUS WATERS OF MAGICAL REALISM AND THERE HE FLOUNDERS WHEN A WRITER OF MR UPDIKE'S GIFTS MOVES IN A RADICALLY NEW DIRECTION IT SEEMS CHURLISH TO WISH HIM BACK TO HIS OLD WAYS BUT IN BRAZIL HE HAS DEFINITELY BLUNDERED INTO THE WRONG GENRE THOUGH IN PREVIOUS BOOKS HE HAS HANDLED MAGIC EFFECTIVELY NOTABLY IN THE WITCHES OF EASTWICK THE FANTASY WAS FIRMLY GROUNDED IN THE PETTY WORLD HE EVOKES SO BRILLIANTLY THAT OF THE MIDDLE CLASS MR UPDIKE A SUBTLE AND WORLDLY MAN IS NOT QUITE SO CREDIBLE IN THE PERSONA OF LATIN AMERICAN MAGIC REALIST CELEBRANT OF INNOCENCE YOUTH AND FIDELITY BRAZIL TELLS THE TALE OF A MODERN NO A POSTMODERN TRISTAN AND ISOLDE ON THE BEACH OF COPACABANA IN RIO TRISTAO A BLACK SLUM BOY SEES AND PLEDGES HIMSELF ON THE SPOT TO ISABEL THE PALE BLOND DAUGHTER OF ONE OF BRAZIL'S GOVERNING ELITES HE IS THE DESCENDANT OF SLAVES SHE OF THE EUROPEAN MASTERS A MISMATCHED COUPLE MR UPDIKE WRITES BUT BRAZIL HAD BEEN POPULATED BY MISMATCHED COUPLES THE KNIGHTERRANT PRESENTS HIS BELOVED WITH A RING BEARING THE LEGEND DAR WHICH THE YOUNG PEOPLE READ AS THE PORTUGUESE TO GIVE IT IS ALSO AN ACRONYM FOR DAUGHTERS OF THE AMERICAN REVOLUTION AND IT TRANSPIRES THAT TRISTAO HAS STOLEN THE RING FROM A BLUEHAIRED MEMBER OF THAT CLUB THE TWO YOUNG PEOPLE ARE NOW SPIRITUALLY ONE FOR AS MR UPDIKE EXPLAINS IN ONE OF THE FATUOUS BROMIDES THAT PEPPER THE BOOK IN BRAZIL ONE SAYS 'WIFE' AND 'HUSBAND' NOT AFTER SOME STILTED LEGAL CEREMONY BUT WHEN ONE'S HEART FEELS MARRIED PURSUED HALFHEARTEDLY BY THE POWERS OF BOURGEOIS CONVENTION AS REPRESENTED BY ISABEL'S FATHER AND HIS GOONS THE LOVERS TAKE A ZIGZAG JOURNEY INTO AND BEYOND THE PRIMEVAL HEART OF THEIR COUNTRY FROM COSMOPOLITAN RIO THEY GO TO INDUSTRIAL SAO PAOLO TO DEAD BUREAUCRATIC BRASILIABRAZIL'S HEART'S PRISON TO A GOLDMINING COMMUNITY STILL USING 18THCENTURY METHODS TO THE WILD MATO GROSSO WHERE THEY BECOME PART OF A 17THCENTURY COLONY OF PORTUGUESE RAIDERS AND FINALLY TO THE IMMEMORIAL INDIAN COMMUNITIES OF THE AMAZON BASIN THERE ISABEL CONSULTS A SHAMAN HOW IS SHE TO FREE TRISTAO WHO BECAUSE OF HIS RACE HAS BEEN MADE A SLAVE BY THE PORTUGUESE RAIDERS THANKS TO THE SHAMAN'S SPELL A SOLUTION IS FOUND THE LOVERS CHANGE RACE ISABEL NOW BECOMES BLACK TRISTAO WHITE THEIR PERSONALITIES CHANGE ACCORDINGLY AND SO DOES THEIR ALREADY OVERWROUGHT SEX LIFE AS A WHITE WOMAN ISABEL AN ISOLDE NOT MERELY OF THE WHITE HANDS BUT OF THE WHITE WHITE ASS HAS BEEN THE ONE OSTENSIBLY BESTOWING THE FAVOR OF HER PERSON UPON HER BLACK LOVER NOW TRISTAO ADOPTS THE ROLE OF GIVER DID NOT PORTUGAL HERE IN THE CONTINENTAL BACKLAND OF BRAZILWOOD AND SUGAR CANE MAKE A WIFE OF AFRICA BUT NOT CONSECRATE THE FACT HE WOULD BE A WHITE MAN WHO WOULD ELEVATE HIS BLACK MISTRESS TO HIS OWN LEVEL THEY RETRACE THEIR STEPS TOWARD THE EAST AND THE PRESENT DAY ENDING UP BACK IN RIO AS MEMBERS OF THE INDUSTRIAL RULING CLASS AND AT THE END OF THE NOVEL TRISTAO IS MURDERED ON COPACABANA BY JUST SUCH A YOUNG HOOD AS HE ONCE WAS ISABEL LIES DOWN IN THE WAVES TO DIE WITH HIM BUT SINCE SHE IS IN FACT A MODERN ISABEL AND NOT A MEDIEVAL ISOLDE DEATH DOES NOT COME AS EASILY AS SHE HAD HOPED IN THE COURSE OF THE STORY THE LOVERS ACT OUT EVERY ECONOMIC ROLE BRAZIL'S HISTORY HAS OFFERED THEY BECOME IN TURN CAPITALISTS INDUSTRIAL WORKERS PETITS BOURGEOIS AND SLAVES THEY TAKE PART IN EVERY POSSIBLE RACIAL COMBINATION TRISTAO'S BROTHERS AND ISABEL'S CHILDREN FROM VARIOUS BRIEF AFFAIRS ARE OF EVERY BREED THAT POPULATE THE CONTINENT AND THEY PERFORM MORE INSISTENT AND EXHAUSTIVE VARIATIONS ON THE SEX ACT THAN I THOUGHT EVEN MR UPDIKE'S IMAGINATIVE POWERS WERE EQUAL TO AS MR UPDIKE DWELLS ON RACE CLASS GENDER AND COLONIALISM HE RESORTS TO UNCHARACTERISTIC CLICHES OF ISABEL HE WRITES SHE HAD LEFT CODDLED GIRLHOOD BEHIND SHE HAD EMBARKED UPON THE PATH OF WOMAN WHICH IS A PATH OF PAIN WHAT IS THAT SUPPOSED TO MEAN AND WHAT ABOUT THE BANALITY THE BRIGHTLY MASKED TEDIUM OF BOURGEOIS LIFETALETELLERS REMAIN BALKED BY IT WHO DOES MR UPDIKE THINK HE'S FOOLING THE TELLER OF THE RABBIT TALES HAS HARDLY BEEN BALKED BY THE BANALITY OF BOURGEOIS LIFE BUT TO BE ANTIBOURGEOIS IS PART OF THE BAGGAGE THAT THE WOULDBE MAGICAL REALIST MUST SHOULDER COMING FROM MR UPDIKE THE BOURGEOIS ARTIST PAR EXCELLENCE SUCH A SIMPLISTIC POSE IS NOT VERY CONVINCING ONE HOPES THAT BRAZIL TURNS OUT TO BE A MERE GLITCH IN THE CAREER OF THE MAN WHO IS PROBABLY THIS COUNTRY'S BEST LIVING WRITER MS ALLEN WRITES ON BOOKS FOR THE NEW CRITERION AND OTHER PUBLICATIONS 9401280099 940128 CREDIT MARKETS TREASURY BONDS ENJOY A LATE RALLY DEFYING TWO REPORTS SHOWING STRONG ECONOMIC GROWTH BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE US TREASURY SECURITIES MARKET SHRUGGED OFF NEWS OF STRONGER ECONOMIC GROWTH WITH PRICES POSTING AN IMPRESSIVE RALLY LATE IN THE SESSION THE BENCHMARK 30YEAR TREASURY BOND ROSE 5/8 POINT OR 625 FOR A BOND WITH 1000 FACE VALUE TO 99 25/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 626 FROM 630 ON WEDNESDAY THE BOND MARKET MANAGED TO WEATHER TWO ECONOMIC REPORTS THAT ON THE SURFACE COULD HAVE SPELLED TROUBLE THE COMMERCE DEPARTMENT REPORTED THAT NEW ORDERS FOR DURABLE GOODS JUMPED 22 DURING DECEMBER SLIGHTLY MORE THAN EXPECTED THE LABOR DEPARTMENT MEANWHILE ANNOUNCED THAT INITIAL UNEMPLOYMENT CLAIMS FELL 56000 TO 309000 LAST WEEK BOND INVESTORS OFTEN REACT NEGATIVELY TO REPORTS OF A STRONGER ECONOMY BECAUSE THEY FEAR HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN DAVID GREENLAW ECONOMIST AT MORGAN STANLEY & CO SAID THE DURABLE GOODS REPORT NOT ONLY REFLECTED ECONOMIC STRENGTH AT THE TAIL END OF 1993 BUT ALSO GAVE HINTS OF HOW THE ECONOMY SHOULD PERFORM IN EARLY 1994 THE DATA CONFIRMED THAT THERE WAS SOME MOMENTUM AT THE END OF THE FOURTH QUARTER BUT WE REALLY ALREADY KNEW THAT MR GREENLAW SAID THE REPORT ALSO SETS THE STAGE FOR SOME MOMENTUM IN THE FACTORY SECTOR IN THE FIRST QUARTER BUT TRADERS AND INVESTORS MEANWHILE CHOSE TO VIEW THE DECEMBER DATA AS OLD NEWS AND THE JOBLESS CLAIMS DATA WERE WRITTEN OFF AS MUDDIED BY PROBLEMATIC SEASONAL FACTORS AND DISTORTED BY THE BAD WEATHER AS A RESULT AN EARLY ATTEMPT AT PUSHING PRICES DOWN FADED QUICKLY PRICES DRIFTED FOR MOST OF THE SESSION BEFORE SPIKING UP LATE IN THE SESSION SUPPORTING TREASURY PRICES AND HELPING TO PROVIDE A LAUNCHING PAD FOR THE MARKET WAS A SMALL BUT STEADY FLOW OF INVESTOR INTEREST IN THE MARKET THERE ARE ACCOUNTS THAT JUST HAVE MONEY THEY NEED TO PUT TO WORK SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES CO INTERNATIONAL INC MUCH OF THAT CASH HAD BEEN INVESTED EARLIER THIS MONTH IN SECURITIES MATURING IN TWO YEARS AND LESS BUT SOME OF THAT MONEY IS NOW BEGINNING TO WORK ITS WAY INTO LONGER ISSUES ACCORDING TO DEALERS TRADERS MEANWHILE SCRAMBLED TO REPLACE TREASURY SECURITIES THAT HAD BEEN SOLD TO CUSTOMERS OR TO UNWIND HEDGES THAT HAD BEEN SET AGAINST OTHER FIXEDINCOME PRODUCTS AND AS THE MARKET WORKED HIGHER IT BROKE THROUGH TECHNICAL LEVELS DRAWING EVEN MORE BUYING INTO THE MARKET AND EXTENDING THE RALLY THERE ARE SOME SIGNS HOWEVER THAT THERE IS A LIMIT TO THE AMOUNT OF CASH ON THE SIDELINES FIGURES FROM THE INVESTMENT COMPANY INSTITUTE RELEASED YESTERDAY SHOWED THAT ALTHOUGH INVESTORS CONTINUED TO POUR MORE MONEY INTO MUTUAL FUNDS IN DECEMBER LESS OF THAT CASH IS HEADING INTO THE GOVERNMENTBOND MARKET THE ICI DATA SHOWED GOVERNMENTBOND FUNDS EXPERIENCED A NET OUTFLOW OF 782 MILLION LAST MONTH FOLLOWING A 708 MILLION OUTFLOW IN NOVEMBER IN CONTRAST INVESTORS PLACED A NET 704 MILLION INTO GOVERNMENT FUNDS DURING OCTOBER JEFF TYLER A PORTFOLIO MANAGER AT BENHAM GROUP SAID THAT ALTHOUGH THERE HAS BEEN SOLID INTEREST IN MUNICIPALBOND FUNDS AND EQUITY FUNDS WE HAVE SEEN VERY LITTLE INTEREST IN THE GOVERNMENT SECTOR IN FACT HE SAID WE LOST A LITTLE BIT OF MONEY OUT OF GOVERNMENTS THE BOND MARKET ALSO HAS TWO NEARTERM HURDLES TO FACE THIS MORNING THE GOVERNMENT WILL RELEASE ITS INITIAL READING ON FOURTHQUARTER GROWTH IN GROSS DOMESTIC PRODUCT TRADERS ARE BRACING FOR A STRONG READING OF A 5 TO 6 RATE OF GROWTH THEN ON MONDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS SCHEDULED TO GO BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS TO DISCUSS THE FED'S ECONOMIC OUTLOOK TRADERS AND ANALYSTS WILL CAREFULLY COMB THROUGH HIS REMARKS FOR ANY SIGNS OF WHEN THE FED MIGHT RAISE INTEREST RATES ONTARIO'S DEBT WAS WELCOMED INTO THE CORPORATEBOND MARKET FOR THE SECOND TIME THIS WEEK AS THE CANADIAN PROVINCE SOLD 2 BILLION OF FLOATINGRATE GLOBAL NOTES YESTERDAY SYNDICATE OFFICIALS SAID THE DEAL WENT EXTREMELY WELL AS THE SIZE OF THE OFFERING WAS INCREASED BY 500 MILLION FROM AN ORIGINAL 15 BILLION ONTARIO SOLD THE 5 1/2YEAR NOTES AT 99595 THE NOTES WILL FLOAT AT A RATE 008 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE ONTARIO'S DEAL THE PROVINCE'S FIRST FLOATINGRATE GLOBAL OFFERING FOLLOWED ITS 125 BILLION CANADIAN DOLLAR US951 MILLION GLOBAL 30YEAR ISSUE ON MONDAY GLOBAL OFFERINGS ARE SOLD SIMULTANEOUSLY IN THE WORLD'S MAJOR MARKETS AND ARE INTENDED TO BE EASILY TRADED IN ALL OF THEM ONTARIO'S ASSISTANT DEPUTY MINISTER OF FINANCE JOHN MADDEN SAID THE PROVINCE OPTED FOR A GLOBAL FLOATINGRATE NOTE AS A MEANS OF DIVERSIFYING ITS FINANCINGS THE ISSUE WAS DONE AT A LOWER COST THAN A COMPARABLE DOMESTIC ISSUE HE SAID MORE THAN HALF OF THOSE BUYERS WERE MONEY MANAGERS WHILE BANKS AND PENSION FUNDS ALSO BOUGHT INTO THE OFFERING SAID MR JACK OF LEHMAN THERE'S A REAL DEMAND FOR FLOATINGRATE SECURITIES MR JACK SAID BECAUSE THE ISSUE FLOATS ON A QUARTERLY BASIS IT PROVIDES PROTECTION FROM RISING INTEREST RATES HE ADDED WHILE UNCERTAINTY ABOUT ONTARIO'S FISCAL OUTLOOK LED STANDARD & POOR'S CORP TO DOWNGRADE THE PROVINCE'S DEBT TO DOUBLEAMINUS FROM DOUBLEA IN NOVEMBER INVESTORS ESPECIALLY IN EUROPE CONTINUE TO FLOCK TO ONTARIO'S PAPER BECAUSE OF ITS NAME RECOGNITION ONE ANALYST SAID EVEN THOUGH THEIR CREDIT STANDING DIMINISHED THEY ARE STILL DOUBLEA AND THAT'S STILL INVESTMENTGRADE THE ANALYST ADDED THE NOTES ARE RATED AA2 BY MOODY'S INVESTORS SERVICE INC ALTHOUGH INVESTORS GAVE THEM A WARM RECEPTION THE 30YEAR BONDS BROUGHT TO MARKET BY ONTARIO ON MONDAY TRADED DOWN SLIGHTLY IN THE SECONDARY MARKET THE 75 COUPON BONDS MATURING IN 2024 DROPPED 017 POINT OR 170 FOR A BOND WITH A 1000 FACE VALUE TO 9825 THE YIELD ROSE TO 765 FROM 7635 PROCEEDS FROM ONTARIO'S OFFERING WILL BE USED TO FUND ITS OPERATIONS FOR THE 1994 FISCAL YEAR WHICH ENDS IN MARCH 1995 ONTARIO'S MR MADDEN SAID THE PROVINCE'S TOTAL BORROWINGS FOR THE YEAR ARE EXPECTED TO BE C10 BILLION OVERALL ONTARIO HAS MORE THAN C76 BILLION IN DEBT OUTSTANDING IN THE INVESTMENTGRADE MARKET PRICES ROSE IN LOCK STEP WITH TREASURYS THE JUNK BOND MARKET CONTINUES ON A HOT STREAK AS NEW ISSUES ARE BEING PRICED WITH EXTREMELY LOW COUPONS AND ARE TRADING HIGHER IN THE SECONDARY MARKET THERE'S NO END TO THIS MARKET IT'S UNBELIEVABLE ONE TRADER SAID YESTERDAY'S JUNK OFFERINGS INCLUDED A 360 MILLION OFFERING OF 10YEAR NOTES FROM PLAYTEX FAMILY PRODUCTS CORP AND A 125 MILLION OFFERING OF 12YEAR NOTES FROM RIGGS NATIONAL CORP HOWEVER YESTERDAY'S BIGGEST MOVER WASN'T A NEW ISSUE KAISER ALUMINUM & CHEMICAL CORP'S 12 3/4 COUPON BONDS DUE 2003 JUMPED 35 POINTS OR 35 FOR A BOND WITH A 1000 FACE VALUE TO 1075 THE YIELD TO THE FIRST PAR CALL DROPPED TO 1118 FROM 12715 KAISER IS A UNIT OF KAISER ALUMINUM CORP MUNICIPAL BONDS CONTINUED THEIR ADVANCE YESTERDAY AND GENERALLY CLOSED 3/8 TO 3/4 POINT HIGHER MUNI SPECIALISTS SAY THE MARKET IS DRAWING STRENGTH FROM A SLOWDOWN IN ISSUANCE IN SECONDARY DEALINGS THE HARRIS COUNTY TEXAS 530 BONDS DUE 2013 CLOSED 1/2 STRONGER AT 99 7/8 YIELDING 530 THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 550 BONDS DUE 2024 FINISHED 3/4 HIGHER AT 100 YIELDING 548 ALTHOUGH MUNIS SEEMED TO BE INDEPENDENTLY STRONG THIS SESSION THEY WERE HELPED BY THE TREASURY BOND MARKET'S CLIMB TRADERS SAY BOTH TAXEXEMPT BONDS AND TREASURYS STRENGTHENED DESPITE NEWS ABOUT THE UNEXPECTEDLY LARGE 22 INCREASE IN DURABLEGOODS ORDERS LAST MONTH AND UNCERTAINTIES ABOUT THE FOURTHQUARTER GROSS DOMESTIC PRODUCT DATA TO BE RELEASED TODAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT ESTIMATE THAT GDP GREW AT A 52 ANNUAL RATE IN THE FOURTH QUARTER AFTER EXPANDING AT A 29 RATE IN THE THIRD QUARTER DESPITE SIGNS OF RENEWED ECONOMIC VIGOR LEBENTHAL & CO MANAGING DIRECTOR DENIS GALLE SAID CONCERNS ABOUT FEDERAL RESERVE TIGHTENING APPEAR TO BE ON THE BACK BURNER CHRYSLER CORP PRICED 15 BILLION OF AUTOLOAN DEBT AND SOCIETY CORP'S SOCIETY NATIONAL BANK ISSUED 2347 MILLION OF STUDENTLOAN SECURITIES AS ASSETBACKED ACTIVITY OVERSHADOWED THE MORTGAGEBACKED MARKET SEPARATELY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT AND AN INCREASE OF A DEAL FOR 800 MILLION OF NEW SECURITIES COLLATERAL WAS 30YEAR 6 1/2 AND 7 SECURITIES ALSO FANNIE MAE ISSUED A 11 BILLION STRIPPED MORTGAGE SECURITIES DEAL THAT USED 15YEAR 6 1/2 SECURITIES AS COLLATERAL IN TRADING MORTGAGE SECURITIES ENDED A FEATURELESS SESSION WITH MODERATE PRICE GAINS WITH 6 1/2 SECURITIES FOR FEBRUARY DELIVERY ALL UP 5/32 HALF THE PRICE INCREASE POSTED BY 10YEAR TREASURY NOTES GINNIE MAES CLOSED AT 100 8/32 FREDDIE MAC GOLDS ENDED AT 100 11/32 AND FANNIE MAES FINISHED AT 100 5/32 CHRYSLER'S PREMIER AUTO TRUST 19941 OFFERING WAS THE SECOND MAJOR DEAL THIS WEEK TO BENEFIT FROM INVESTOR DEMAND FOR TOPRATED ASSETBACKED PAPER THE OFFERING WAS BACKED BY AUTO AND LIGHT TRUCK RECEIVABLES ORIGINATED BY THE COMPANY'S CHRYSLER FINANCIAL CORP UNIT AND WAS MANAGED BY BEAR STEARNS & CO CS FIRST BOSTON PRICED THE 2347 MILLION DEAL FOR SOCIETY NATIONAL WHICH WAS BACKED BY LOANS TO LAW STUDENTS THE DEAL IS THE SECOND PUBLICLY OFFERED SECURITY BACKED BY STUDENT LOANS TO BE OFFERED BY THE CLEVELAND BANK THE LARGEST PORTION OF THE SOCIETY OFFERING WAS A 1586 MILLION FLOATINGRATE CLASS PRICED WITH AN INITIAL COUPON OF 3455 AT PAR TO FLOAT 033 POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE ANDREW WILLIS CONTRIBUTED TO THIS COLUMN 9401280098 940128 ADMINISTRATION PLAN AIMS TO CHANGE COMMUTING VIA CASHORPARKING OPTION BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WANTS EMPLOYERS TO PAY THEIR WORKERS TO TAKE THE BUS BUT THE PLAN ISN'T LIKELY TO CHANGE COMMUTING HABITS MUCH TAXLAW EXPERTS SAY THE ADMINISTRATION WANTS COMPANIES THAT PAY THEIR EMPLOYEES' PARKING BILLS TO OFFER THOSE WORKERS THE CASH EQUIVALENT AS AN ALTERNATIVE MANY OF THE EMPLOYEES WOULD POCKET THE CASH AND TAKE MASS TRANSIT INSTEAD THE THEORY GOES EASING AIR POLLUTION AND CROWDED HIGHWAYS THE PROPOSAL IS PART OF THE CLIMATE CHANGE ACTION PLAN THAT PRESIDENT CLINTON INTRODUCED LAST FALL AND WILL BE INCLUDED IN THE FEDERAL BUDGET WHEN IT IS UNVEILED NEXT MONTH THE PLAN SAYS THAT IF COMPANIES WANT TO PRESERVE THEIR TAX BREAKS FOR GIVING THEIR WORKERS FREE PARKING IT MUST OFFER THEM THE CASH EQUIVALENT OF THE PARKING FEES AS WELL THIS COULD HELP STATES MEET THEIR OBLIGATIONS UNDER THE CLEAN AIR ACT AN ADMINISTRATION OFFICIAL SAID IT'S BETTER THAN A MANDATE ONLY COMMUTERS WHO PARK IN SEPARATE PARKING LOTS NOT OWNED BY THEIR EMPLOYERS WOULD BE AFFECTED NO ONE IS CERTAIN HOW MANY COMMUTERS THAT AMOUNTS TO BUT THE OFFICIALS CONTEND THAT ENOUGH COMMUTERS WOULD OPT FOR THE CASH TO MAKE IT A NET GOVERNMENT MONEYMAKER BECAUSE THE CASH GIVEN IN LIEU OF PARKING WOULD BE TAXABLE INCOME MOREOVER COMPANIES THAT QUIT PAYING FOR PARKING WOULD LOSE A TAX DEDUCTION OFFICIALS ESTIMATE THAT THE PLAN WOULD MUSTER SEVERAL HUNDRED MILLION ADDITIONAL TAX DOLLARS OR PERHAPS AS MUCH AS 1 BILLION WITH CONGRESS SCROUNGING FOR WAYS TO MEET ITS BUDGET CEILINGS ANY PROPOSAL THAT CLAIMS IT CAN RAISE CASH FOR OTHER PROGRAMS IS LIKELY TO SAIL THROUGH BUT OUTSIDE THE GOVERNMENT REACTION HAS BEEN MORE AKIN TO SOMEONE WHO JUST DISCOVERED A FLAT TIRE I THINK IT'S A DUMB IDEA SAYS MARY HEVENER A FRINGEBENEFITS EXPERT AT THE LAW FIRM OF MCDERMOTT WILL & EMERY IN WASHINGTON I SEE THIS AS BEING A HUGE REVENUE LOSER AND IT ASTOUNDS ME THAT IT HAS GOTTEN TO THIS POINT IN THE BUDGET MS HEVENER BELIEVES WORKERS WHO ARE COVERED BY THE PROPOSAL WILL SIMPLY ASK FOR A SALARY REDUCTION EQUIVALENT TO THE VALUE OF THEIR PARKING MANY COMPANIES FOR EXAMPLE ALREADY ALLOW EMPLOYEES TO REDUCE THEIR GROSS SALARIES IN EXCHANGE FOR TAXFREE INCOME DEDICATED TO CHILD CARE OR HEALTH CARE THAT WILL HAPPEN THE ADMINISTRATION OFFICIAL CONCEDES BUT SO MANY PEOPLE PARK AND GET PARKING PAID FOR THAT YOU ONLY NEED A SLIVER TO OPT FOR THE CASH ON TOP OF THEIR SALARIES TO RAISE REAL MONEY GERALD USLANDER A PRINCIPAL AT THE WASHINGTON RESOURCE GROUP AN EMPLOYEEBENEFITS CONSULTING FIRM IS ALSO SKEPTICAL HE NOTES THAT A SEPARATE LAW WILL GO INTO EFFECT FULLY THIS YEAR THAT REQUIRES EMPLOYEES TO PAY TAX ON THE VALUE OF THEIR FREE PARKING ABOVE 155 A MONTH THAT'S GOING TO BE A BIG ADMINISTRATIVE BURDEN FOR EMPLOYERS AS IT IS AND THIS WILL JUST ADD TO IT HE SAYS HE ALSO SAYS THAT MOST OF THE EMPLOYEES WHO RECEIVE PAID PARKING BENEFITS ARE HIGHERPAID EXECUTIVES ANYWAY TO WHOM THE CONVENIENCE OF DRIVING EXCEEDS THE IMPORTANCE OF A LITTLE EXTRA CASH I DON'T SEE THIS CHANGING BEHAVIOR MUCH HE SAYS 9401280097 940128 TECHNOLOGY & HEALTH BRIEF AMERITECH CORP FIRM WILL SPEND 44 BILLION ON A FULLSERVICE NETWORK AMERITECH CORP PLANS TO SPEND 44 BILLION OVER THE NEXT 15 YEARS TO BUILD A FULLSERVICE NETWORK CAPABLE OF CARRYING AN ARRAY OF INTERACTIVE SERVICES TO CUSTOMERS ACROSS ITS MIDWEST TERRITORY THIS IS THE PLATFORM THAT POSITIONS US TO SERVE FIVE TO SIX MILLION CUSTOMERS BY THE END OF THE DECADE RICHARD BROWN AMERITECH'S VICE CHAIRMAN SAID BUT THE 44 BILLION BLUEPRINT AMOUNTS TO A CONSERVATIVE COURSE FOR THE COMPANY AT A TIME WHEN OTHER REGIONAL TELEPHONE COMPANIES HAVE UNVEILED BIGGER AND BOLDER PLANS AMERITECH NONETHELESS SAID IT INTENDS TO DELIVER VIDEO SERVICES TO A MILLION HOMES BY THE END OF 1995 STARTING OUT WITH PARTS OF CHICAGO MILWAUKEE AND DETROIT THE 44 BILLION IS IN ADDITION TO 246 BILLION OVER 15 YEARS THAT THE CHICAGOBASED BABY BELL HAS SAID IT WILL SPEND TO UPGRADE ITS NETWORK FOR AN AVERAGE OF 164 BILLION A YEAR AMERITECH HAS SPENT AN AVERAGE OF 2 BILLION A YEAR FOR THE PAST DECADE ON NETWORK UPGRADES 9401280096 940128 REVIEW & OUTLOOK EDITORIAL THREE STRIKES REAL PEOPLE EVERYONE'S TALKING ABOUT THE THREE STRIKES YOU'RE OUT LAW THAT PRESIDENT CLINTON ENDORSED THIS WEEK AND IS BEING CONSIDERED BY 30 STATES NOW WASHINGTON STATE WILL SOON PUT ON TRIAL THE FIRST DEFENDANT ACCUSED OF VIOLATING THAT STATE'S PATHBREAKING THREE STRIKES LAW APPROVED BY 76 OF VOTERS LAST NOVEMBER HIS STORY MAKES CLEAR WHY THE IDEA OF SENTENCING SOMEONE CONVICTED OF THREE VIOLENT FELONIES TO LIFE IS SO POPULAR CECIL EMILE DAVIS A 34YEAROLD TACOMA MAN HAS A HISTORY OF VIOLENCE IN 1986 HE WAS CONVICTED OF A MISDEMEANOR ASSAULT THE FIRST OF FOUR MISDEMEANOR ASSAULTS HE WOULD COMMIT OVER THE NEXT FEW YEARS HE WAS CONVICTED OF HIS FIRST VIOLENT FELONY LATER IN 1986 AND A COURT GAVE HIM AN UNUSUALLY LONG 36MONTH SENTENCE FOR ROBBING A CONVENIENCE STORE AND USING EXTREME CRUELTY IN BEATING THE CLERK AND A CUSTOMER HE WAS RELEASED WITH TIME OFF FOR GOOD BEHAVIOR AFTER 24 MONTHS IN 1990 DAVIS WAS SENTENCED FOR A SECOND VIOLENT FELONY HE ATTACKED TWO PEOPLE WITH AN ICE PICK HIS PROBATION OFFICER RECOMMENDED AN EXTRAORDINARY SENTENCE OF 72 MONTHS BECAUSE OF ESCALATING ASSAULTS CONCERN FOR PUBLIC SAFETY AND FUTURE DANGEROUSNESS BUT THE JUDGE SENTENCED HIM TO ONLY 38 MONTHS HE SERVED 32 A FEW MONTHS LATER THE DAY AFTER THIS PAST CHRISTMAS DAVIS IS ACCUSED OF ABDUCTING A MENTALLY DISABLED TACOMA WOMAN AND TAKING HER TO HIS APARTMENT WHERE HE ALLEGEDLY RAPED HER SEVERAL TIMES HE THEN TOOK HER TO THE RECESSED STAIRWELL OF A NEARBY CHURCH BEAT HER AND SLIT HER THROAT WITH A KNIFE SHE FELL DOWN THE STAIRWELL AND WAS LEFT FOR DEAD WHEN FOUND SHE WAS UNABLE TO TALK BUT DREW A MAP TO DAVIS'S APARTMENT AND IDENTIFIED HIM FROM A PHOTO LINEUP UNDER CURRENT LAW DAVIS WOULD SPEND MANY YEARS IN PRISON BUT PIERCE COUNTY PROSECUTOR JOHN LADENBURG SAYS HIS EXPERIENCE IS THAT MAY NOT BE ENOUGH FOR SOME SOCIOPATHS THESE PEOPLE CAN COMMIT MURDER OR SEXUALLY MOLEST CHILDREN INTO THEIR 50S AND 60S HE TOLD US THE PUBLIC IS SAYING IT WANTS THOSE PEOPLE OFF THE STREETS HE TOLD US WASHINGTON STATE OFFICIALS REPORT THE THREE STRIKES LAW IS LIKELY TO AFFECT ONLY ABOUT 30 TO 60 HARDCORE CRIMINALS A YEAR A MANAGEABLE BURDEN FOR THE STATE'S PRISON SYSTEM BUT IT MIGHT SNARE SOME PROVEN REPEAT THUGS SUCH AS CECIL DAVIS LAW ENFORCEMENT OFFICIALS AGREE THAT SEVEN OUT OF 10 VIOLENT CRIMES ARE COMMITTED BY ONLY 6 OF VIOLENT CRIMINALS SADLY THE BIGGEST CAUSE OF VIOLENT CRIMES IN AMERICA TODAY IS THE EARLY RELEASE OF VIOLENT CRIMINALS WHO COMMIT MORE VIOLENCE THE AUTHORS OF WASHINGTON STATE'S THREE STRIKES LAW ARE NOW DRAFTING A HARD TIME FOR ARMED CRIME INITIATIVE IT WOULD INCREASE THE SENTENCE FOR USING A FIREARM IN A VIOLENT CRIME BY FIVE YEARS DOUBLE THE BASE SENTENCE IF THE OFFENDER HAS PREVIOUSLY BEEN CONVICTED OF USING A DEADLY WEAPON DURING A CRIME AND ELIMINATE TIME OFF FOR GOOD BEHAVIOR FOR THE TIME TACKED ON FOR THE USE OF A WEAPON SOME CRIMINOLOGISTS OBJECT THAT TOUGH SENTENCING LAWS HAVE DONE LITTLE TO REDUCE THE CRIME RATE BUT DAN LUNGREN CALIFORNIA'S ATTORNEY GENERAL THINKS INCARCERATION DOES WORK HE NOTES THAT HIS STATE'S CRIME RATE IS NOW BELOW WHAT IT WAS IN 1980 WHEN IT BEGAN LOCKING UP MORE FELONS OTHERS ARGUE THAT A THREE STRIKES LAW WOULD BURDEN A STATE WITH MANY OLD PRISONERS WHOSE CRIMECOMMITTING DAYS ARE OVER JOHN CARLSON PRESIDENT OF THE WASHINGTON INSTITUTE FOR POLICY STUDIES POINTS OUT THAT A STATE GOVERNOR CAN COMMUTE ANY SENTENCE OR PARDON ANY CRIMINAL FINALLY AND MOST RELEVANT TO THIS LATEST TURN IN THE POLITICS OF CRIMEFIGHTING THERE IS THE ROOT CAUSES SCHOOL OF CRIME IT HAS BEEN AROUND A LONG TIME ITS ADHERENTS HAVE RUN SOCIAL SERVICE AGENCIES ADMINISTERED LOCAL CRIMINAL JUSTICE SYSTEMS AND OCCUPIED MANY JUDGESHIPS AT EVERY LEVEL OUR READING WOULD BE THAT IN 1993 THE AMERICAN PUBLIC CONCLUDED THAT THIS SCHOOL HAD FAILED THEIR GREATER FAILURE WAS IN THINKING THEY COULD STILL RETAIN CONTROL OF THE ISSUE BY DEMONIZING THEIR CRITICS AS IDEOLOGUES AND SIMPLISTIC EVEN AS THE HORROR OF SPECIFIC CRIMINAL ACTS INTENSIFIED THIS WAS POLITICAL DENIAL AND EVENTUALLY A DISGUSTED PUBLIC SHOVED THEM ASIDE YES IT SHOULD STILL BE POSSIBLE TO TALK ABOUT IMPROVING ECONOMIC OPPORTUNITIES AND EDUCATION BUT HERE TOO THE ROOTCAUSES PEOPLE ARE GENERALLY ALLIED WITH THE INTERESTS THAT ARE TRYING TO THWART ALTERNATIVES TO THE STATUS QUO ESPECIALLY IN EDUCATION THOSE STRATEGIES IN ANY EVENT ARE OPERATING ON A LONGER TIME FRAME THAN THE NATIONAL 911 CALL THE AMERICAN PEOPLE ARE SENDING OUT ON VIOLENT CRIME WITH THREE STRIKES AND YOU'RE OUT THE PUBLIC HAS DECIDED THAT THEIR CITIES AND NEIGHBORHOODS WILL NO LONGER BE PLAYGROUNDS FOR CRIMINALS 9401280095 940128 MUTUAL FUNDS STOCK FUNDS HAD RECORD INFLOWS IN DECEMBER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL STOCK MUTUAL FUNDS PULLED IN A RECORD NET INFLOW OF 145 BILLION FROM INVESTORS IN DECEMBER AND FUND EXECUTIVES SAY JANUARY'S INFLOWS MAY SOAR EVEN HIGHER POWERED BY RETIREMENTPLAN AND OTHER YEAREND MONEY JANUARY IS A GREAT MONTH FOR FUND SALES SAYS STEPHEN GIBSON A MANAGING DIRECTOR AT MARSH & MCLENNAN SECURITIES CORP'S PUTNAM INVESTMENTS THIS MOMENTUM SHOULD CARRY OVER INTO FEBRUARY AS INVESTORS CONTINUE TO MOVE BONUSES AND YEAREND RETIREMENT SUMS OUT OF MONEYMARKET FUNDS INTO STOCK AND BOND FUNDS THE HUGE CASH INFLOW INTO STOCK FUNDS IN DECEMBER CAPPED THE BIGGEST YEAR IN HISTORY FOR MUTUALFUND SALES ALL TOLD STOCK FUNDS ATTRACTED A RECORD 128 BILLION IN 1993 FAR ABOVE THE PRIOR RECORD OF 78 BILLION SET IN 1992 FOR THE FIRST TIME ASSETS OF ALL MUTUAL FUNDS INCLUDING STOCK BOND AND MONEYMARKET FUNDS TOPPED 2 TRILLION AT THE END OF DECEMBER THE INFLUENCE OF STOCK FUNDS IS GROWING OVERSEAS FULLY HALF THE MONEY GOING INTO STOCK FUNDS IN DECEMBER WENT INTO THOSE INVESTING ABROAD ACCORDING TO A NEW YORK CONSULTING FIRM STRATEGIC INSIGHT THE CASHFLOW DATA COME FROM THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP THEY MEASURE NEW SALES OF FUNDS COUNTING THE EFFECTS OF EXCHANGES AMONG FUNDS AND REDEMPTIONS REINVESTED DIVIDENDS AREN'T INCLUDED THE TORRENT OF MONEY INTO STOCK FUNDS BODES SUPPORT FOR THE STOCK MARKET HOWEVER FUND MANAGERS' RESERVES OF CASH WHICH CAN BE TAPPED TO PICK UP BARGAINS IN A DECLINING STOCK MARKET ARE FALLING DESPITE THE HUGE INFLOW OF CASH STOCK FUNDS' HOLDINGS OF CASH DWINDLED IN DECEMBER TO 85 OF STOCKFUND ASSETS DOWN FROM 88 IN NOVEMBER JANUARY USUALLY BRINGS BIG CASH FLOWS INTO MUTUAL FUNDS MANY CORPORATE RETIREMENT PLANS MAKE DISTRIBUTIONS IN JANUARY AND INDIVIDUAL RETIREMENT ACCOUNTS BEGIN GETTING BIG INFLOWS IN PREPARATION FOR TAX SEASON BUT FUND EXECUTIVES SAID THE INFLOWS THIS MONTH ARE HEAVY EVEN BY SEASONAL STANDARDS THE MONEY COMES FROM MANY SOURCES OTHER THAN BANK CERTIFICATES OF DEPOSIT FUND EXECUTIVES SAY STATISTICS CONTINUE TO INDICATE THAT CDS HAVE DIMINISHED AS A MAJOR DRIVER OF FLOWS INTO MUTUAL FUNDS PUTNAM'S MR GIBSON SAYS OTHER SOURCES INCLUDE BONUSES ROLLOVERS SALARIES AND LUMPSUM PAYMENTS MADE TO VICTIMS OF CORPORATE DOWNSIZING EACH WAVE OF LAYOFFS IS A BOON FOR MUTUAL FUNDS MR GIBSON SAYS IN JANUARY SEVERAL FUND GROUPS INCLUDING T ROWE PRICE ASSOCIATES INC AND FIDELITY INVESTMENTS THE LARGEST FUND MANAGER IN THE US SAY THEY HAVE SEEN RECORD INFLOWS INTO THEIR STOCK AND BOND FUNDS T ROWE PRICE SAYS FLOWS INTO FUNDS INVESTING IN FOREIGN STOCKS ARE STRONG DESPITE TURMOIL IN SOME PACIFIC STOCK MARKETS BUT DOMESTICSTOCK FUNDS ALSO ARE PULLING IN BIG SUMS AT T ROWE PRICE TEMPLETON FUNDS THE FOREIGNSTOCK FUND DIVISION OF FRANKLIN RESOURCES INC SAYS THAT INFLOWS IN JANUARY SET A NEW RECORD BEATING THE PRIOR HURDLE SET ONLY IN DECEMBER MOST FOREIGN STOCKMARKETS HANDILY OUTPERFORMED THE US STOCK MARKET LAST YEAR ATTRACTING BIG SUMS OF MONEY THE POPULARITY OF INTERNATIONALSTOCK FUNDS ALSO REFLECTS SOME CONCERN OVER HIGH VALUATIONS IN THE US MARKET SAYS GREGORY JOHNSON A SENIOR VICE PRESIDENT AT FRANKLIN FIDELITY SAYS IT HAS RECEIVED STRONG INFLOWS INTO ALL TYPES OF STOCK FUNDS IN JANUARY INCLUDING CONSERVATIVE AND AGGRESSIVE DOMESTICSTOCK FUNDS AS WELL AS INTERNATIONAL FUNDS COUNTING STOCK AND BOND FUNDS FIDELITY EXPECTS TO PULL IN 29 BILLION IN JANUARY AN AMOUNT GREATER THAN THE CASH FLOW INTO THE ENTIRE FUND INDUSTRY DURING ANY SINGLE MONTH OF 1989 INVESCO FUNDS GROUP SAYS THE FLOW OF CASH INTO ITS FUNDS ACCELERATED IN JANUARY FROM DECEMBER DESPITE THE CONTROVERSY SURROUNDING ITS FORMER STAR MANAGER JOHN KAWESKE INVESCO FIRED MR KAWESKE EARLY IN JANUARY FOR NOT REPORTING SOME PERSONAL STOCK TRADES BUT THE BIGGEST FUND FOR WHICH HE WAS A MANAGER INVESCO INDUSTRIAL INCOME HAS GOTTEN AN INFLOW OF 57 MILLION IN JANUARY RAISING ITS ASSETS UNDER MANAGEMENT TO MORE THAN 4 BILLION BONDFUND INFLOWS OF 114 BILLION DURING 1993 ALSO SET A RECORD BEATING THE 109 BILLION THAT FLOWED INTO BOND FUNDS IN 1986 BUT CASH FLOWS INTO BOND FUNDS DROPPED OFF LATE IN 1993 AS INTEREST RATES SPIKED UP HURTING THE PERFORMANCE OF LONGTERM BOND FUNDS MOREOVER INVESTORS IN POPULAR MORTGAGE FUNDS SUFFERED DISAPPOINTING FULLYEAR RESULTS BOND FUNDS TOOK IN 58 BILLION IN DECEMBER UP FROM 41 BILLION IN NOVEMBER BUT STILL BELOW THE MONTHLY LEVELS IN MOST OF 1993 GOVERNMENTBOND FUNDS INCLUDING THOSE INVESTING IN MORTGAGEBACKED SECURITIES HAD OUTFLOWS OF 21 BILLION IN DECEMBER CASH FLOWS INTO TAXABLEBOND FUNDS ROSE IN JANUARY AT SEVERAL FUND GROUPS AN OUTFLOW OF INVESTORS REDEEMING OR EXCHANGING OUT OF TAXABLEBOND FUNDS SUBSIDED AFTER DECEMBER WHEN RISING INTEREST RATES HURT BONDFUND RETURNS HIGHER TAXES AND THEIR DISCLOSURE IN PAYCHECK SHOCK IS DRIVING MANY INVESTORS INTO MUNICIPALBOND FUNDS IN JANUARY SAYS NEAL LITVACK AN EXECUTIVE VICEPRESIDENT AT FIDELITY SALES OF TAXEXEMPT BOND FUNDS WERE UP FOURFOLD FROM DECEMBER AT VANGUARD GROUP AND WERE ALSO UP SHARPLY AT FRANKLIN PUTNAM AND OTHER GROUPS INVESTOR SENTIMENT ROSE IN JANUARY ACCORDING TO A UNIVERSITY OF MICHIGAN INVESTOR SURVEY TO THE HIGHEST LEVEL SINCE THE SURVEY BEGAN IN JANUARY 1991 BUT THE SURVEY SPONSORED BY FIDELITY ALSO FOUND THAT FEWER INVESTORS WERE PLANNING TO BUY STOCK FUNDS IN THE NEAR FUTURE ONE DOLLAR ONE VOTE FIDELITY INVESTMENTS HAS BEEN GRADUALLY CHANGING THE WAY ITS SHAREHOLDER VOTES GET COUNTED SINCE NOVEMBER IT HAS GOTTEN SHAREHOLDERS AT 20 FUNDS TO APPROVE DOLLAR BASED VOTING ON PROXIES IN WHICH EACH HOLDER'S VOTE IS WEIGHTED BY THE DOLLAR SIZE OF THE HOLDING NOT THE NUMBER OF SHARES HELD FUND GROUPS SUCH AS FIDELITY OFTEN FOLD MANY INDIVIDUAL FUNDS INTO A SINGLE TRUST THE PRICE OF A SINGLE SHARE CAN VARY FROM FUND TO FUND AN INVESTOR PUTTING 70 INTO ONE FUND MIGHT BUY A SINGLE SHARE WHILE ANOTHER WITH 70 MIGHT BUY 10 SHARES OF ANOTHER FUND IN THE SAME TRUST DOLLARBASED VOTING WOULD GIVE BOTH INVESTORS THE SAME SAY IN PROXY VOTES FIDELITY SAYS THE CHANGE IN VOTING WILL EVENTUALLY APPLY TO ALL ITS FUNDS ONE FUND WITH THE PROPOSAL UP FOR A VOTE IS GIANT MAGELLAN EVEN THOUGH THERE ARE NO OTHER FUNDS IN MAGELLAN'S TRUST FRANKLIN'S FEES FRANKLIN RESOURCES IS ASKING SHAREHOLDERS TO APPROVE SOME FEE CHANGES IT WANTS TO ELIMINATE THE SALES CHARGE IT IMPOSES ON REINVESTED DIVIDENDS AN UNUSUAL PRACTICE IN AN INDUSTRY WHERE MOST COMPANIES DON'T CHARGE SUCH A SALES LOAD ON REINVESTED PAYOUTS BUT FRANKLIN ALSO WANTS TO RAISE THE FRONTEND SALES CHARGE ON ITS FUNDS TO A MAXIMUM OF 45 FOR MOST STOCK FUNDS AND 425 ON BOND FUNDS UP FROM 4 ON BOTH AND IT'S ASKING PERMISSION TO LEVY SOCALLED 12B1 ANNUAL FEES WHICH ARE SMALL BUT RECURRING SALES CHARGES THAT COMPENSATE BROKERS THE NEW 12B1 FEES WILL BE SMALLER THAN THOSE LEVIED BY MANY OTHER FUND GROUPS BUT THEIR LEVELS WILL GRADUALLY RISE 9401280094 940128 LEISURE & ARTS ON SPORTS DIRTIEST WORD IN FOOTBALL LOSER' BY FREDERICK C KLEIN ATLANTA THE JOCKSANDCOACHES UNION THAT CUTS ACROSS SPORTS LINES NO LESS REAL FOR BEING UNOFFICIAL HAS DECREED THAT LOSING IS AKIN TO DEATH AND MORE THAN A BIT SHAMEFUL ENTER A LOSERS' LOCKER ROOM AFTER THE LEAST IMPORTANT GAME AND YOU'RE LIKELY TO FIND THE PLAYERS STRIKING DEJECTED POSES BARELY ABLE TO SPEAK FOR HUMILIATION AND CHAGRIN ANY OTHER SORT OF BEHAVIOR WOULD PUT THEM AT RISK OF BEING CONSIDERED INSUFFICIENTLY SERIOUS THE FACT IS HOWEVER THAT LOSING IS THE COMMON LOT OF THOSE WHO ENGAGE IN SPORTS EXCEPT FOR ROCKY MARCIANO AND THE OCCASIONAL RACEHORSE EVERYBODY LOSES SOMETIME AND DEPENDING ON HOW YOU DEFINE IT MOST LOSE MOST OF THE TIME IF THE LATE FOOTBALL COACH GEORGE ALLEN WAS CORRECT WHEN HE SAID EVERY TIME YOU WIN YOU'RE REBORN WHEN YOU LOSE YOU DIE A LITTLE FEW ATHLETES WOULD REACH THEIR MAJORITY THE SUBJECT OF WINNING AND LOSING UNADORNED IS ESPECIALLY APT THIS WEEK IN THIS SOUTHERN METROPOLIS SITE OF THE PROFESSIONAL FOOTBALL CHAMPIONSHIP SUPER BOWL BETWEEN THE DALLAS COWBOYS AND BUFFALO BILLS THE CONTEST WON'T BE PLAYED OUT UNTIL SUNDAY BUT ONE TEAM THE DEFENDINGCHAMPION COWBOYS ALREADY HAS BEEN CAST IN THE ROLE OF WINNER AND ITS FOE ASSIGNED THE LESS DESIRABLE PART INDEED BECAUSE THEY LOST THIS GAME THE PAST THREE TIMES IT WAS PLAYED THE BILLS HAVE BEEN TREATED AS IF THEY HAVE A LOT OF NERVE BEING HERE AT ALL THIS PERCEPTION PERSISTS ALTHOUGH ALL AND SUNDRY KNOW THAT THE BILLS ARE AT WORST A VERY GOOD CLUB WINNERS OF 58 OF 76 OVER THE PAST FOUR SEASONS ONE OF THEIR VICTORIES IN THE CURRENT CAMPAIGN WAS OVER THE COWBOYS YET JIMMY JOHNSON THE DALLAS COACH HAS BEEN PERMITTED TO TURN EVERY INTERVIEW SESSION INTO A SERMON ON SUCCESS THE DISTILLATION OF HIS WISDOM IS THAT WINNING IS SOMETHING THAT'S ACCOMPLISHED BY WINNERS AS IN WE HAVE WINNERS EVERYWHERE IN OUR ORGANIZATION WHILE MARV LEVY HIS BUFFALO COUNTERPART IS ASKED TO SECONDGUESS HIS PAST PRACTICES THE PAST IS HISTORY LEVY INSISTS HE'S SURELY RIGHT ABOUT THIS HE'S A HARVARD MAN AFTER ALL BUT WE TREAT HIS WORDS WITH SKEPTICISM IT'S BEEN ASSERTED THAT LEVY'S SIN THE FAILURE TO WIN THE BIG ONE IS UNIQUELY GRIEVOUS IN FOOTBALL WE DON'T HEAP SIMILAR SCORN UPON SAY BASEBALL PENNANT WINNERS WHO DON'T WIN THE WORLD SERIES OR UNSUCCESSFUL FINALISTS IN THE NCAA BASKETBALL TOURNEY MAYBE NEXT YEAR WE'LL TRY THE WORLD SERIES LEVY SAID WEDNESDAY IN RESPONSE TO ONE QUESTION ALONG THOSE LINES THERE MAY BE A POINT THERE IT HAS BEEN FOOTBALL THE GAME CLOSEST TO WAR THAT'S PRODUCED OUR MOST MEMORABLE AND ABSOLUTE QUOTES ABOUT WINNING AND LOSING WINNING ISN'T EVERYTHING IT'S THE ONLY THING USUALLY IS ATTRIBUTED TO VINCE LOMBARDI BUT THE REFERENCE BOOKS SAY HENRY RED SANDERS ANOTHER OLD FOOTBALL COACH REALLY SAID IT GOOD LOSERS GET INTO THE HABIT OF LOSING SAID KNUTE ROCKNE WITHOUT WINNERS THERE WOULDN'T BE ANY GODDAMNED CIVILIZATION SAID WOODY HAYES BUT ALL THOSE GUYS WERE COACHES AND A COUPLE DAYS OF QUOTESHAGGING HERE THIS WEEK SUGGESTS THAT THEIR TROOPS ER PLAYERS MAY HAVE SOMEWHAT DIFFERENT IDEAS FOOTBALL IS A TEAM GAME WHICH MEANS THAT CREDIT OR BLAME USUALLY IS COLLECTIVE RATHER THAN INDIVIDUAL THAT THIS IS AN IDEA MANY FOOTBALL PLAYERS FIND COMFORTING IS SEEN IN THEIR WILLINGNESS TO ABSOLVE FROM BLAME THOSE OF THEIR NUMBER WHO MAY HAVE BEEN MORE RESPONSIBLE THAN MOST FOR MEMORABLE DEFEATS YES BUFFALO KICKER SCOTT NORWOOD NO LONGER WITH THE TEAM DID MISS THE LASTPLAY FIELD GOAL THAT WOULD HAVE WON THE BILLS' FIRST SUPER BOWL APPEARANCE IN 1991 BUT HE WAS A FINE FELLOW WHO HELPED WIN OTHER GAMES AND ONE SHOULDN'T OVERLOOK OTHER PLAYERS' MISCUES THAT DAY AS HIS TEAMMATES STILL CHORUS AND YES LEON LETT THE DALLAS DEFENSIVE LINEMAN DID COST HIS TEAM A THANKSGIVING DAY VICTORY OVER MIAMI WHEN HIS ILLADVISED SWIPE AT THE BALL AFTER A MISSED FIELD GOAL TURNED INTO A COWBOY FUMBLE BUT THAT TOO WAS FORGIVABLE WE GAVE LEON A BALL WITH A PIECE OF STRING TIED TO IT LATER BUT THAT WAS A TEAM THING HE KNEW WE WERE KIDDING AVERRED RUSSELL MARYLAND LETT'S LINEMATE INSIGHT INTO HOW A LARGE DOSE OF DEFEAT CAN BE LESS THAN LETHAL IS PROVIDED BY THE BILLS' STEVE TASKER HE'S AN UNUSUAL PLAYER IN A COUPLE OF RESPECTS AT 5FOOT9 AND 180 POUNDS HE'S AN ORDINARYSIZE MAN IN A GIANTS' GAME HE WAS A PARTTIME PLAYER IN COLLEGE WHO HAS MADE A 10YEAR PROFESSIONAL CAREER IN THAT ROLE AS A MEMBER OF THE SOCALLED SPECIAL TEAMS THAT COVER AND RETURN KICKS TASKER COMES FROM LEOTI KAN A TOWN THAT HE SAYS HAS ONE BLINKING TRAFFIC SIGNAL AND A SINGLE ONEWAY STREET WHICH RUNS IN FRONT OF THE ELEMENTARY SCHOOL HE MAINLY RAN TRACK IN HIGH SCHOOL AND UNRECRUITED ATTENDED A COMMUNITY COLLEGE FOR A YEAR FROM THERE HE WENT TO NORTHWESTERN UNIVERSITY AN ESTIMABLE INSTITUTION BUT A PERENNIAL FOOTBALL NONPOWER THE TEAMS HE PLAYED ON THERE MOSTLY AS A KICK RETURNER WON BUT SEVEN OF 33 GAMES SIGNED BY THE HOUSTON OILERS AS A SPECIALTEAMER FOR HIS SPEED TASKER WAS WAIVED IN 1986 AFTER SUFFERING TWO SERIOUS KNEE INJURIES IN AS MANY SEASONS BUFFALO PICKED HIM UP FOR THE SAME CHORES HE'S MADE THE PRO BOWL FIVE TIMES SINCE IN THAT CAPACITY AND WAS NAMED THE MOST VALUABLE PLAYER OF LAST YEAR'S GAME MOST GUYS WHO COME TO THE PROS WERE STARS IN COLLEGE AND CONSIDER SPECIAL TEAMS A STEP DOWN NOT ME HE SAYS OF HIS PROWESS TASKER THINKS HIS NORTHWESTERN YEARS WERE WORTHWHILE DESPITE THE DEARTH OF VICTORIES WE ACCOMPLISHED SOME THINGS THERE THAT WERE GOOD FOR THE FOOTBALL PROGRAM AND I LOVED JUST PLAYING HE SAYS HE'S LIKED BEING A PRO MORE BECAUSE I'VE SHOWED I CAN DO WHAT I DO AT THE VERY HIGHEST LEVEL HE GOES ON IF WE LOSE AGAIN I'M SURE SOME PEOPLE WILL CONTINUE TO DEFINE US BY OUR LOSSES BUT I WON'T I'LL RECALL BEING A MEMBER OF SOME VERY GOOD TEAMS VINCE LOMBARDI SAID WHAT HE DID SAY WAS WINNING ISN'T EVERYTHING BUT MAKING THE EFFORT TO WIN IS HE ALSO SAID IF YOU CAN'T ACCEPT LOSING YOU CAN'T WIN MAYBE HE REALLY WAS A SAINT MAYBE STEVE TASKER IS TOO AND MAYBE THE BILLS WILL WIN THE VINCE LOMBARDI TROPHY ON SUNDAY 9401280093 940128 POLITICS & POLICY WHILE NEW LOS ANGELES MAYOR HITS STRIDE DEALING WITH A CLEARCUT CRISIS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IT MAY HAVE TAKEN AN EARTHQUAKE BUT THE DISASTER THAT BEFELL THIS CITY 11 DAYS AGO HAS GALVANIZED ITS NEW MAYOR MULTIMILLIONAIRE LAWYER AND INVESTOR RICHARD RIORDAN REVERSING A LACKLUSTER FIRST SIX MONTHS IN OFFICE FOR THE FIRST TIME THE MAYOR SEEMS TO BE HEEDING HIS OWN CAMPAIGN RHETORIC THAT A BIG CITY CAN BE RUN LIKE A BIG BUSINESS WITH AN EFFICIENT CHIEF EXECUTIVE AT THE HELM THE MAYOR 63 YEARS OLD WAS ELECTED IN JUNE WITH A PROMISE TO RESTRUCTURE THE CITY'S GOVERNMENT AND ECONOMY HE NOW FACES THE EVEN MORE DAUNTING TASK OF REBUILDING PHYSICAL SECTIONS OF LOS ANGELES ITSELF FRESH IN THE CITY'S MEMORY IS THE PERFORMANCE UNDER FIRE OF ANOTHER MAYOR TOM BRADLEY THE STIFF AND DOUR SHARECROPPER'S SON AND FORMER COP WHO HELD ON TO CITY HALL FOR 20 YEARS WHEN RIOTS ERUPTED HERE IN APRIL 1992 THE HARSH GLARE OF LOCAL AND NATIONAL MEDIA FOUND HIM WANTING NOW ANOTHER WRENCHING OF THE CITY HAS THRUST MR RIORDAN INTO THE SPOTLIGHT AS BOTH PETITIONER AND CHEERLEADER HIS ROLE IN GUIDING THE CITY'S RECONSTRUCTION WILL DEFINE HIS MAYORALTY WHETHER TRUE OR NOT IT'S THE VOTERS' PERCEPTION THAT THE MAYOR SHOULD BE IN CHARGE AND IF HE ISN'T HE'S GOT A VERY REAL POLITICAL PROBLEM SAYS SHERRY BEBITCH JEFFE SENIOR ASSOCIATE AT THE CENTER FOR POLITICS AND ECONOMICS AT THE CLAREMONT GRADUATE CENTER THE MAYOR A REPUBLICAN WHO MAINTAINS SUCH CLOSE TIES WITH DEMOCRATS THAT HE HAS JOGGED WITH PRESIDENT CLINTON HAS WON PRAISE FOR HIS EARLY HANDLING OF THE QUAKE'S DEVASTATION TRANSPORTATION SECRETARY FEDERICO PENA WHO HAS BEEN WORKING CLOSELY WITH HIM COMPLIMENTS THE MAYOR FOR BRINGING A VERY BUSINESSLIKE PERSPECTIVE TO THINGS AS WELL AS AN ABILITY TO STIMULATE PEOPLE HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS SAYS THIS IS THE BESTORGANIZED AND BESTEXECUTED EMERGENCY RESPONSE THAT WE HAVE SEEN UNTIL THE SHOCK OF THE QUAKE WHICH MEASURED 66 ON THE RICHTER SCALE EMANATED FROM THE DENSELY POPULATED NORTHRIDGE AREA OF LOS ANGELES MR RIORDAN A TRIM MAN WITH THINNING GRAY HAIR AND AN ESTIMATED 100 MILLION FORTUNE SEEMED TO HAVE A SURFEIT OF POLITICAL PROBLEMS SINCE HIS INAUGURATION MR RIORDAN HAS TURNED IN A VERY MIXED PERFORMANCE SAYS LARRY L BERG PROFESSOR OF POLITICAL SCIENCE AT THE UNIVERSITY OF SOUTHERN CALIFORNIA AND DIRECTOR OF THE JESSE UNRUH INSTITUTE OF POLITICS LITTLE ABOUT MR RIORDAN SEEMS TO HAVE INSPIRED COMMENTATORS OR THE PUBLIC BEFORE THE QUAKE A RESIDENT OF LOS ANGELES'S AFFLUENT WEST SIDE ELECTED WITH HEAVY SUPPORT FROM THE MOSTLY MIDDLECLASS SAN FERNANDO VALLEY THE AREA HIT HARDEST BY THE EARTHQUAKE MR RIORDAN HAD PLEDGED A MANAGEMENT REVOLUTION AT CITY HALL HE HAD SHOWN FLASHES OF PROMISE IN HIS FIRST MONTHS BY WOOING A CITY COUNCIL LONG ESTRANGED UNDER HIS PREDECESSOR AND WITH A VICTORY AGAINST AIRLINES IN A HIGHLY PUBLICIZED LANDINGFEES DISPUTE AT LOS ANGELES AIRPORT BUT ONGOING GOOFS HAVE MADE HIS PROMISED REVOLUTION LOOK MORE LIKE A WOODY ALLEN SKIT THERE HAVE BEEN CLUMSY MOSTLY FORCED DEPARTURES OF FIVE TOP OFFICIALS THE MAYOR'S PENCHANT FOR OFFCOLOR JOKES BECAME EMBARRASSINGLY PUBLIC AN EFFORT TO WITHHOLD 40 MILLION FROM CITY WORKERS' PENSION FUNDS DREW JEERS AND IN A GRACELESS MOMENT DURING LAST FALL'S DESTRUCTIVE WILDFIRES MR RIORDAN ANNOUNCED THAT THANKFULLY FEW OF THE CHARRED STRUCTURES WERE WITHIN CITY LIMITS DUMB SAYS PROF BERG MR RIORDAN HOWEVER SEEMS TO HAVE BEEN SHAKEN AWAKE BY THE EARTHQUAKE THIS IS AN ISSUE THAT PLAYS TO HIS STRENGTH A TANGIBLE NUTS AND BOLTS DISASTER SAYS RAPHAEL SONENSHEIN A PROFESSOR OF POLITICAL SCIENCE AT CALIFORNIA STATE UNIVERSITY WILLIAM OUCHI MANAGEMENT PROFESSOR AUTHOR OF THE POPULAR BUSINESS BOOK THEORY Z AND NOW AN ADVISER TO THE MAYOR SAYS MR RIORDAN'S CRISIS MANAGEMENT EXPERIENCE HAS BEEN HONED IN PART BY DOING FINANCIAL DEALS IN EFFECT HE HAS BEEN COORDINATING LOTS OF PEOPLE UNDER PRESSURE IN COMPLEX SITUATIONS FOR YEARS IN RECENT DAYS MR RIORDAN HAS EMERGED AS AN UNORTHODOX PRACTITIONER OF THE ART OF POLITICS HOPPING BLITHELY OVER RED TAPE AND ACROSS PARTISAN DIVIDES HE IS GIVEN TO STRAIGHT TALK WITH THE LIKES OF PRESIDENT CLINTON AND CALIFORNIA GOV PETE WILSON TO SUDDEN CAR PHONE CALLS TO CITY OFFICIALS TO GET THINGS DONE IMMEDIATELY AND TO SHOWING HIS IMPATIENCE WITH CAUTIOUS BUREAUCRATS THE MAYOR VALUES INFORMAL CONSULTATION MR RIORDAN IS MUCH MORE OF A HANDSON GUY THAN MAYOR BRADLEY SAYS IRWIN BAKER A REPORTER WHO HAS COVERED CITY HALL FOR MORE THAN TWO DECADES FOR THE LOS ANGELES TIMES CITY COUNCIL MEMBERS HAVE BEEN SURPRISED TO FIND THE MAYOR OCCASIONALLY BUTTONHOLING BUREAUCRATS AND CHATTING WITH PASSERSBY IN THE CORRIDERS OF CITY HALL THE RESTLESS MR RIORDAN OFTEN TRAVELS THE STREETS OF LOS ANGELES IN HIS RASPBERRYCOLORED FORD EXPLORER LINKED BY PHONE TO HIS OFFICE DECISIONS ARE MADE ON THE FLY WHEN HE SAW THOUSANDS OF NEWLY HOMELESS ANGELENOS TAKE TO PARKS AFTER THE QUAKE MR RIORDAN TOLD AN AIDE TO CALL MAKERS OF PLASTIC SHEETING AND ASK THEM TO DONATE A QUANTITY TO HELP THE SHELTER EFFORT GOOD INSTINCTS PERHAPS BUT CITY OFFICIALS ALREADY HAD ORDERED THE PLASTIC AT COMMERCIAL PRICES DURING A WALK NEAR THE EPICENTER OF THE QUAKE MR RIORDAN LISTENED AS A RESIDENT COMPLAINS THAT POOR PLANNING ALLOWED A BURIED PIPELINE FULL OF CRUDE OIL TO RUN IN FRONT OF AN ELEMENTARY SCHOOL THE MAYOR TURNS TO A NEARBY WORK CREW AND IS TOLD THAT THE LINE WHICH BURST INTO FLAMES AFTER THE QUAKE WAS INSTALLED IN 1925 LONG BEFORE THE SCHOOL CHATTING SOME MORE MR RIORDAN NODS AS ANOTHER NEIGHBOR SUGGESTS RESIDENTS AND SCHOOL OFFICIALS BE TOLD WHERE PIPELINES ARE BURIED WE'LL GET IT DONE HE SAYS AS AN AIDE MAKES A NOTE LARGELY UNHAMPERED BY THE CAUTION AND ALLIANCES OF MANY LONGTIME POLITICIANS THE MAYOR REACHES AGREEMENTS SWIFTLY SOMETIMES LETTING CREDIT OR APPARENT VICTORY GO TO THE OTHER SIDE THE MOST IMPORTANT THING RIGHT NOW I THINK IS TO NOT LET TURF BATTLES GET IN THE WAY HE SAYS I DON'T WORRY ABOUT GETTING CREDIT IF I DO A GOOD JOB PEOPLE WILL KNOW HIGH ON MR RIORDAN'S AGENDA HAS BEEN A BEHINDTHESCENES CAMPAIGN TO ENCOURAGE STATE TRANSPORTATION OFFICIALS TO SPEED UP VITAL FREEWAY REPAIRS IN A QUIET EVENING PHONE CONVERSATION WITH GOV WILSON MR RIORDAN NOTES THAT PLANNERS ARE TALKING ABOUT A PAINFULLY LONG YEAR OR MORE TO MAKE BADLY NEEDED REPAIRS WITHIN A DAY STATE ENGINEERS START TALKING ABOUT SWIFTER ACTION POSSIBLE SHORTCUTS INCLUDE CONTRACTING WITH PRIVATE ENGINEERING FIRMS FOR WORK USUALLY DONE WITHIN THE STATE BUREAUCRACY PRIVATIZATION WAS A CENTERPIECE OF MR RIORDAN'S CAMPAIGN WITH HIS PROPOSAL THAT THE OPERATION OF THE CITY'S AIRPORT BE LEASED OUT MR RIORDAN RETURNS THE GOVERNOR'S FAVOR WHEN HE LEARNS THAT GOV WILSON HASN'T BEEN INVITED TO MEET PRESIDENT CLINTON AT THE AIRPORT DURING HIS TRIP TO LOS ANGELES AFTER THE QUAKE A SURPRISED MAYOR PUTS THE GOVERNOR ON HOLD AND MAKES ARRANGEMENTS TO GET HIM INVITED I DON'T SEE ANY REASON TO RILE THE GOVERNOR HE TELLS AN AIDE THE MAYOR DOESN'T SHY AWAY FROM COZY RELATIONSHIPS WITH DEMOCRATS IN THE PAST HE HAS CONTRIBUTED SUBSTANTIALLY TO BOTH PARTIES HE HAS WORKED SWIFTLY TO FORGE A CLOSE RELATIONSHIP WITH SECRETARY PENA A FORMER MAYOR HIMSELF THOUGH POLITICAL MEALS OFTEN TAKE ON THE TRAPPINGS OF STATE BANQUETS MR RIORDAN WHO IS SEPARATED FROM HIS SECOND WIFE LIKES THE INFORMAL APPROACH LAST WEEK MR PENA WAS INVITED OVER FOR DINNER WITH MR RIORDAN AND HIS STEADY COMPANION NANCY DALY THE ESTRANGED WIFE OF WARNER BROS CHAIRMAN BOB DALY JUST THE THREE OF US IT WAS VERY PLEASANT MR RIORDAN SAYS THE MAYOR SEEMS IMPATIENT WITH THE CONVENTIONAL MECHANICS OF GOVERNMENT PLANNING WHEN THREE DOZEN TRANSPORTATION AGENCY REPRESENTATIVES GATHER TO DISCUSS CITY'S PLIGHT MR RIORDAN LISTENS FOR A WHILE THEN SWIFTLY TICKS OFF HIS LIST OF PRIORITIES THERE SHOULD BE A DAILY MEETING HE SUGGESTS BUT WE DON'T WANT A DOG AND PONY SHOW LIKE THIS THE FACT THAT HE'S BORED WITH THE MINUTIAE OF GOVERNMENT COMES THROUGH VERY CLEARLY MS BEBITCH JEFFE SAYS STILL MR RIORDAN AND HIS STAFF SWIFTLY ASSEMBLED A PLAN TO MINIMIZE TRAFFIC JAMS ENCOURAGING THE USE OF CARPOOLS AND PUBLIC TRANSPORTATION SYSTEMS TYPICAL OF RIORDAN EFFORTS THE PLANS EXPAND IN PRACTICAL WAYS ON EXISTING PROGRAMS SOME WHO HAVE WATCHED MR RIORDAN FOR YEARS GRANT HIS STRENGTH IN SHORTTERM ATTENTION TO DETAIL BUT QUESTION HIS LONGERTERM SKILLS IN HANDLING DIFFUSE ISSUES OF SOCIAL CHANGE AND ECONOMIC MIASMA HE TENDS TO DO POORLY IN SITUATIONS THAT AREN'T CLEARCUT SAYS PROF SONENSHEIN AND MR RIORDAN STILL NEEDS TO CONVINCE IMPORTANT BLACK AND LATINO INTERESTS IN THE CITY THAT HE CAN DO SOMETHING FOR THEM BUT SOLVING THE CITY'S DEEP ECONOMIC AND RACIAL PROBLEMS HAS BEEN PUT ON HOLD WALKING INTO A CROWDED ENCAMPMENT SOON AFTER THE QUAKE THE MAYOR SEEMS MORE LIKE A REAL FATHER THAN A CITY FATHER TO THE SCARED RESIDENTS MANY OF THEM RECENT IMMIGRANTS FROM QUAKEPRONE CENTRAL AMERICA HE LISTENS PATIENTLY TO CONVERSATIONS IN FRACTURED ENGLISH THEN WHILE TALKING TO ONE WOMAN ABOUT HER PROBLEMS HE PULLS A CELLULAR PHONE FROM HIS POCKET AND CALLS HIS OFFICE PEOPLE ARE PUSHING EVERYWHERE BUT MR RIORDAN HOLDS HIS GROUND IN A CALM VOICE HE RELAYS A LIST OF ITEMS THAT ARE ANYTHING BUT MUNDANE TO THESE PEOPLE THE MAYOR SAYS HE WANTS BATTERIES FLASHLIGHTS AND BLANKETS DELIVERED TO THE CAMP PRONTO OH AND ONE OTHER THING DIAPERS HE ASKS THE WOMAN IN FRONT OF HIM DIAPERS HE REPEATS INTO THE PHONE AS THE WOMAN NODS SEE RELATED ARTICLEPOLITICS & POLICY EARTHQUAKE ADDS TO CALIFORNIA GOVERNOR'S NEED FOR POLITICAL DISASTER RELIEF IN ELECTION YEAR WSJ JAN 28 1994 9401280092 940128 TECHNOLOGY COLLAGEN GETS FDA CLEARANCE PALO ALTO CALIF COLLAGEN CORP SAID IT RECEIVED MARKETING CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION FOR ITS STRIP BONEGRAFT PRODUCT 9401280091 940128 TECHNOLOGY BRIEF AMERICA ONLINE SURGE OF NEW SUBSCRIBERS PUSHES NET INCOME UP 55 AMERICA ONLINE INC SAID FISCAL SECONDQUARTER EARNINGS ROSE 55 DUE TO A SURGE OF NEW SUBSCRIBERS THAT HAS CAUSED THE VIENNA VA COMPANY GROWING PAINS THE COMPUTER ONLINE INFORMATION SERVICE SAID NET ROSE TO 12 MILLION OR 16 CENTS A SHARE FOR THE QUARTER ENDED DEC 31 FROM 790000 OR 12 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 215 MILLION FROM 9 MILLION THE COMPANY SAID IT HAD DOUBLED ITS SUBSCRIBER BASE TO 531000 BUT THE RAPID GROWTH IN THE SERVICE WHICH PROVIDES ELECTRONIC CHAT FORUMS NEWS AND SOFTWARE HAS MADE IT DIFFICULT FOR ALL CUSTOMERS TO GET EASY ACCESS IN THE LAST FEW WEEKS DRAWING SOME COMPLAINTS THE COMPANY SAID BROADER DISTRIBUTION OF ITS SUBSCRIPTION SOFTWARE THROUGH BUNDLING AGREEMENTS WITH COMPUTER AND MODEM MANUFACTURERS AND INCREASED CONTENT HAS HELPED BOOST SUBSCRIPTIONS WHILE THE COMPANY DECLINED TO FORECAST PROFITS FOR THE QUARTER ENDING MARCH 31 ANALYSTS' ESTIMATES AVERAGE 21 CENTS A SHARE THEY ALSO EXPECT SUBSCRIPTIONS TO REACH ONE MILLION IN SEPTEMBER 9401280090 940128 CONGRESS GETS FED PAPERS FROM A MICHIGAN LIBRARY WASHINGTON THE HOUSE BANKING COMMITTEE DOING AN ENDRUN AROUND THE FEDERAL RESERVE OBTAINED THREE YEARS OF TRANSCRIPTS OF FED DELIBERATIONS FROM THE GERALD R FORD LIBRARY IN ANN ARBOR MICH AND RELEASED EXCERPTS YESTERDAY PRODDED BY THE COMMITTEE THE FED RECENTLY AGREED TO RELEASE EDITED VERSIONS OF TRANSCRIPTS THAT ARE MORE THAN FIVE YEARS OLD BUT HASN'T YET DONE SO FED OFFICIALS ARE TO DECIDE NEXT MONTH WHETHER TO CONTINUE TO MAKE AND RELEASE TRANSCRIPTS OF FUTURE MEETINGS BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS SAID THE TRANSCRIPTS RELEASED BY THE COMMITTEE WHICH WERE EDITED BY THE NATIONAL ARCHIVES PROVE THAT THE FEDERAL RESERVE HAS NO GROUNDS FOR KEEPING THIS INFORMATION SECRET HE HAS PROPOSED THAT THE FED RELEASE TRANSCRIPTS OF ITS MEETINGS WITHIN 60 DAYS THE LATE ARTHUR BURNS WHO WAS CHAIRMAN OF THE FED GAVE THE FORD LIBRARY HIS PERSONAL PAPERS AND 3000 PAGES OF TRANSCRIPTS OF FED POLICY MEETINGS FROM MARCH 1976 THROUGH MARCH 1978 THE FED HADN'T ANY COMMENT 9401280089 940128 ENTERPRISE FACTS AND FIGURES ADD UP TO BIG MONEY FOR SAT TUTOR BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THREE HUNDRED DOLLARS BUYS A LITTLE OF ARUN ALAGAPPAN'S TIME AN HOUR BUT A LOT OF INFORMATION THE MEANING OF THE WORD PAPAL FOR EXAMPLE OR HOW TO HANDLE TWOVARIABLE EQUATIONS MR ALAGAPPAN PRONOUNCED ALUHGUHPAN IS A PRIVATE TUTOR IN MANHATTAN WHO SPECIALIZES IN PREPARING STUDENTS TO TAKE STANDARDIZED TESTS INCLUDING THE SCHOLASTIC APTITUDE TEST PREREQUISITE FOR ADMISSION TO MOST UNDERGRADUATE COLLEGES AS SUCH HE HAS MADE A SMALL BUSINESS INTO A BIG MONEYMAKER DESPITE HIS HIGH COST OR MAYBE BECAUSE OF IT MR ALAGAPPAN HAS DEVELOPED A FANATICAL FOLLOWING IN THE HIGHSTAKES HIGHPRESSURE WORLD OF COLLEGE PREPARATION SOMEWHERE BETWEEN SPECTACULAR AND INDESCRIBABLE SAYS FRANK BIONDI PRESIDENT AND CHIEF EXECUTIVE OF VIACOM INC WHOSE DAUGHTER ANNE STUDIED WITH MR ALAGAPPAN THE MOST WONDERFUL PERSON IN THE WORLD SAYS JUDITH HIRSCH A TAX ACCOUNTANT WHOSE DAUGHTER REBEKAH WAS ANOTHER ALAGAPPAN CLIENT SINCE MR ALAGAPPAN TYPICALLY SEES KIDS FOR AN HOUR AND 40 MINUTES A WEEK WHICH ADDS UP TO 500 FOR 10 TO 15 WEEKS COSTS FOR ALL THAT WONDERFULNESS CAN QUICKLY MOUNT UP JAYME STEWART A HIGHSCHOOL GUIDANCE COUNSELOR FIGURES SHE HAS SPENT 22000 WITH MR ALAGAPPAN OVER THE PAST SEVERAL YEARS GETTING HER SON AND TWIN DAUGHTERS THROUGH A BATTERY OF PRECOLLEGE TESTS COLLEGES SAY LARGE SUMS SPENT ON IMPROVING SAT SCORES ARE MISPLACED IF THEY ARE GOING TO SPEND UPWARD OF 10000 IT WOULD BE BETTER SPENT GETTING INVOLVED IN SOME OUTSIDE ACTIVITY SAYS DRUSILLA BLACKMUN DEAN OF UNDERGRADUATE ADMISSION AND FINANCIAL AID AT COLUMBIA UNIVERSITY AND EDUCATIONAL TESTING SERVICE WHICH ADMINISTERS THE SAT DISPUTES MOST CLAIMS OF HIGHER SCORES ATTRIBUTED TO TUTORS IT SAYS RESEARCH SHOWS THAT ON AVERAGE 40 HOURS OF COACHING CAN INCREASE A TEST SCORE BY ONLY 30 TO 50 POINTS MR ALAGAPPAN SAYS HE DOES NOT TEACH TESTBEATING TECHNIQUES INSTEAD HE SAYS HE SYSTEMATICALLY DECONSTRUCTS PUBLISHED SAT EXAMS AND TEACHES THE UNDERLYING MATHEMATICAL AND GRAMMATICAL PRINCIPLES THE 2000PLUS WORDS HE HANDS OUT TO MEMORIZE ABIDE STRIFE ALLEGORY FORGO EMBOLDEN AREN'T AN ARBITRARY SET OF WORDS HE SAYS THEY ARE WORDS THAT ARE LINKED TO PERFORMANCE IN COLLEGE IF YOU READ MELVILLE YOU WILL SEE THE WORDS WE GIVE OUT HE BROKE THE MATH EXAM INTO 14 TYPES OF PROBLEMS LIKE FRACTIONS DECIMALS AND EXPONENTS AND TEACHES THE CONCEPTS BEHIND THE QUESTIONS HE TEACHES OLDFASHIONED MNEMONICS TACOS THE TOTAL AREA MINUS THE CUTOUT EQUALS THE SHADED REGION AND ASSOCIATIONS GREGARIOUS THINK OF GREG ON THE BRADY BUNCH A FRIENDLY AND OUTGOING PERSON THERE IS EVEN A SPECIAL VOCABULARY LIST OF WORDS MANHATTAN KIDS HAVE TROUBLE WITH THE TROUBLESOME CATEGORIES FARM ANIMALS BOVINE EQUESTRIAN FOAL GANDER EWE CHURCH CHAPEL CLERGY HEATHEN HYMN PAGAN AND SPORTS ERROR FUMBLE MITT GOAL A GRADUATE OF PRINCETON AND HARVARD LAW SCHOOL MR ALAGAPPAN STARTED ADVANTAGE TESTING WHICH NOW HAS ABOUT 20 TUTORS IN 1986 AFTER HAVING WORKED FOR A BIG MANHATTAN LAW FIRM NOW 34 YEARS OLD HE WAS BORN IN INDIA THE SECOND OF FOUR CHILDREN OF A UNITED NATIONS OFFICIAL IMMIGRATED HERE AT AGE TWO AND GREW UP IN THE NEW YORK CITY BOROUGH OF QUEENS EVERY SATURDAY MORNING MY DAD TOOK ME TO THE LIBRARY NOT TO BASEBALL GAMES HE SAYS I TOOK MY STUDIES VERY SERIOUSLY BUT EVEN MORE IMPORTANT THAN HIS KNOWLEDGE SOME STUDENTS SAY IS HIS CALMING INFLUENCE THE TWO GO HAND IN HANDNEUROSIS AND NEW YORK SAYS CLIENT TANYA FRIEDMAN NOW A SENIOR AT HARVARD HE REALLY KNOWS THAT AND HE DOES HIS BEST TO ALLAY EVERYONE'S FEARS HE'S VERY RELAXING ANOTHER CLIENT MS STEWART'S SON TRIPP SAYS OF MR ALAGAPPAN HE GOT ME A GOOD ENOUGH SCORE TO GET ME INTO PRINCETON WHICH I CAN'T PRAISE HIM ENOUGH FOR TRIPP STEWART SAYS HIS SCORES JUMPED TO 1300 FROM 1050 AFTER A YEAR'S TUTORING SOME OBSERVERS SEE THE POPULARITY OF MR ALAGAPPAN'S AND OTHER PRIVATE TUTORING SERVICES AS A BYPRODUCT OF NEW YORK'S PRESSURECOOKER MENTALITY IN A LOT OF NEW YORK PRIVATE SCHOOLS THERE IS SUCH A HIGH PREMIUM PLACED ON GETTING INTO A COLLEGE WITH A NAME THAT GLOWS IN THE DARK SAYS STEPHEN SINGER DIRECTOR OF COLLEGE COUNSELING AT HORACE MANN SCHOOL IN RIVERDALE GEORGE MAYER RETIRED HEAD OF THE ENGLISH DEPARTMENT AT MANHATTAN'S TRINITY SCHOOL AND HIMSELF AN SAT TUTOR SAYS THERE ARE A LOT OF WEALTHY PARENTS IN NEW YORK WHO ASSUME THAT THE MORE THEY PAY THE BETTER THE TUTORING IS WHICH IS STUPID THEY TEND TO ASSUME KIDS MUST HAVE SAT TRAINING THE WAY THEY SEE AN ORTHODONTIST ADVANTAGE'S TOP TUTOR EARNS ABOUT 100000 A YEAR MR ALAGAPPAN WON'T DISCLOSE HIS OWN INCOME BUT SAYS HE TUTORS FOR ABOUT 60 HOURS A WEEK 11 MONTHS OF THE YEAR AND ONLY RAISES HIS RATES WHEN HE GETS TWICE AS MANY REQUESTS FOR HIS SERVICES AS HE CAN FILL HE SAYS HE IS SENSITIVE TO CHARGES OF ELITISM HE AND HIS COMPANY TUTOR 15 OF THEIR STUDENTS PRO BONO AND ALSO OFFER LESS EXPENSIVE TUTORS AND CLASSES FOR PEOPLE WHO CAN'T AFFORD MR ALAGAPPAN HIMSELF AS FOR THE HIGH FEES CHARGED TO THOSE WHO CAN AFFORD THEM MR ALAGAPPAN SAYS HIS CHARGES ARE DELIBERATELY HIGH HIS REASONING MY STRONG AND EXPLICIT AGENDA WAS TO ATTRACT TO PRIVATE TEACHING PEOPLE WHO MIGHT PRACTICE OTHER PROFESSIONS BECAUSE THEY AREN'T GOING TO BE REWARDED FINANCIALLY FOR TEACHING 9401280087 940128 CORRECTIONS & AMPLIFICATIONS CAROLINE B AUSTIN IS PRESIDENT OF DEMPSEY & CO A SPECIALIST FIRM ON THE CHICAGO STOCK EXCHANGE AN ARTICLE YESTERDAY INCORRECTLY REFERRED TO THE CHICAGO STOCK EXCHANGE BY ITS FORMER NAME THE MIDWEST STOCK EXCHANGE 9401280086 940128 WORK & FAMILY BY SUE SHELLENBARGER MANY CHILDCARE PROGRAMS FOR SCHOOLAGE KIDS FALL SHORT ON QUALITY A NATIONAL STUDY FINDS BEFORE AND AFTERSCHOOL PROGRAMS ARE MULTIPLYING FAST WITH MORE THAN 17 MILLION CHILDREN ENROLLED BY WORKING PARENTS TRYING TO AVOID THE HOMEALONE SYNDROME BUT THE FIRST NATIONAL STUDY OF SCHOOLAGE CHILD CARE AN EDUCATION DEPARTMENT SURVEY OF 1304 SITES RAISES QUESTIONS ABOUT FACILITIES AND ACTIVITIES WHILE THE PROGRAMS STUDIED KEEP CHILDREN SAFE AND SUPERVISED MANY LACK ADEQUATE SPACE FOR VARIED ACTIVITIES MANY DON'T PROVIDE A QUIET AREA FOR REST OR SEPARATE SPACE FOR SNACKS ACTIVE PLAY DRAMA OR CREATIVE ARTS IN ONE PROGRAM CHILDREN JUST SIT IN A CAFETERIA WITH NO PLAY EQUIPMENT IN MORE THAN A QUARTER OF THE PROGRAMS CHILDREN DON'T HAVE WEEKLY ACCESS TO A PLAYGROUND OR PARK RESEARCHERS DESCRIBED SUCH PROGRAMS AS TOO CONFINING AND NOT PLEASANT PLACES TO BE FOR CHILDREN MANY PROGRAMS DON'T OFFER MATH OR SCIENCE ACTIVITIES AND LESS THAN HALF TRY TO PROVIDE REMEDIAL HELP FOR CHILDREN HAVING TROUBLE IN SCHOOL STAFF PAY AND TURNOVER ARE WARNING SIGNALS AS WELL PAY FOR SENIOR PROGRAM STAFF AT 677 AN HOUR IS EVEN LOWER THAN THE DISMAL 749 AVERAGE HOURLY PAY FOR PRESCHOOL TEACHERS AND MORE THAN HALF THE PROGRAMS LOSE 60 OF THEIR STAFF ANNUALLY FORCING DIRECTORS TO SPEND A LOT OF TIME TRAINING NEW EMPLOYEES FOR EMPLOYERS THE STUDY PROVIDES A GLIMPSE OF SOME OF THE ISSUES PARENTS FACE IN FINDING CARE FOR SCHOOLAGE CHILDREN SAYS DIANNE KAPLAN DEVRIES OF RMC RESEARCH THE PORTSMOUTH NH CONCERN THAT CONDUCTED THE STUDY WORKFAMILY ISSUES LONG PIGEONHOLED BY ACADEMIA IN THE SOCIOLOGY OR WOMEN'S STUDIES DEPARTMENTS ARE STARTING TO SURFACE AT BUSINESS SCHOOLS ACADEMICS AND BUSINESS LEADERS WILL GATHER FOR THE FIRST TIME ON FEB 18 AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL TO TALK ABOUT HOW TO ADD MATERIAL ON WORKFAMILY ROLE CONFLICTS TO THE BUSINESSSCHOOL CURRICULUM PROFESSORS FROM NINE UNIVERSITIES INCLUDING THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE UNIVERSITY OF MICHIGAN AND THE UNIVERSITY OF VIRGINIA AS WELL AS MANAGERS FROM XEROX MERCK AND SEVERAL CONSULTING FIRMS ARE EXPECTED TO ATTEND STEWART D FRIEDMAN A WHARTON MANAGEMENT PROFESSOR WHO ORGANIZED THE MEETING SAYS PARTICIPANTS WILL DISCUSS HOW TO MAKE WORKFAMILY ISSUES FIT IN A SYSTEMATIC WAY INTO THE CULTURAL MAINSTREAM OF MBA LIFE WHARTON IS ONE OF THE FIRST MBA SCHOOLS TO INCLUDE WORKFAMILY ISSUES IN ITS REQUIRED COURSEWORK STUDENTS EXAMINE CASE STUDIES ON ISSUES FACED BY DUALCAREER COUPLES JUGGLING MULTIPLE ROLES THEY ALSO BREAK UP INTO GROUPS BASED ON SEX MARITAL AND FAMILY ROLES AND TALK TO EACH OTHER ABOUT THE TENSIONS THAT CAN ARISE AMONG THOSE GROUPS DR FRIEDMAN SAYS IT CAN GET PRETTY HOT HE SAYS THE MEN MIGHT SAY YEAH I WANT MY WIFE AT HOME HAVING BABIES WHAT'S IT TO YOU' AND WOMEN MIGHT SAY THEY RESENT STEREOTYPES AROUND FAMILY ROLES OR I'M NOT PLANNING TO HAVE KIDS AND DON'T CASTIGATE ME FOR THAT' HE SAYS ONE MANAGER WHO PLANS TO ATTEND THE MEETING PERRY CHRISTENSEN MERCK'S DIRECTOR OF HUMAN RESOURCE STRATEGY AND PLANNING SAYS COMPANIES WOULD BENEFIT IF BUSINESSSCHOOL STUDENTS WERE SENSITIZED TO DIFFERING VIEWPOINTS ON WORKFAMILY ISSUES SHARON LOBEL A MANAGEMENT PROFESSOR AT SEATTLE UNIVERSITY WHO ALSO WILL ATTEND ADDS I THINK WE'LL SEE MORE AND MORE OF THIS KIND OF MATERIAL IN THE CURRICULUM AT MBA SCHOOLS IN THE FUTURE THE AX FALLS ON WORKFAMILY PROGRAMS ONCE DEEMED IMMUNE FROM CUTBACKS THOUGH WORKFAMILY PROGRAMS ARE SO HIGHPROFILE THAT THEY TYPICALLY ARE SEEN AS SACRED COWS A FEW EMPLOYERS ARE SUBJECTING THEM TO COST CUTS KOHLER A KOHLER WIS PLUMBINGFIXTURES MAKER CLOSED ITS FOURYEAROLD CHILDCARE CENTER THIS MONTH CITING OPERATING LOSSES ENROLLMENT AT THE CENTER LONG TROUBLED BY FINANCIAL WOES HAD FALLEN SHARPLY A COMPANY SPOKESMAN SAYS LAST YEAR APPLE COMPUTER OF CUPERTINO CALIF REDUCED FUNDING TO ITS CHILDCARE CENTER REQUIRING THE CENTER TO RAISE EMPLOYEES' TUITION BY 20 AND INCREASE ENROLLMENT THE COMPUTER MAKER SAYS IT IS MAINTAINING ITS COMMITMENT TO WORKFAMILY PROGRAMS GENERALLY PACIFIC GAS & ELECTRIC LAID OFF ITS FAMILYCARE COORDINATOR DURING A DOWNSIZING A SPOKESMAN SAYS THE SAN FRANCISCO UTILITY IS CONTINUING ALL ITS WORKFAMILY OFFERINGS INCLUDING A CHILDCARE CENTER AND JOBSHARING ADOPTION REIMBURSEMENT FLEXIBLE SCHEDULING AND DEPENDENTCARE REFERRAL PROGRAMS WELLS FARGO A SAN FRANCISCO BANKING CONCERN ALSO LAID OFF A PARTTIME WORKFAMILY COORDINATOR A SPOKESWOMAN SAYS IT IS EXPANDING WORKFAMILY PROGRAMS UNDER A REORGANIZED EMPLOYEE HEALTHANDWELLNESS UNIT SEVEN THOUSAND CALLERS SWAMP WORK/FAMILY DIRECTIONS BOSTON WITH REQUESTS FOR ITS HOMESAFETY KIT FOR ELDERS DESIGNED FOR WORKING PEOPLE WORRIED ABOUT AGING RELATIVES THE KIT INCLUDES NIGHTLIGHTS ADHESIVE GRIPS FOR THROW RUGS AND OTHER DEVICES TO PREVENT HOME ACCIDENTS LIVE VIA BABY LINK FROM SUBURBAN NEW JERSEY IS RADIO NEWSCASTER LIZ WHITE'S SIGNOFF FOR WMXVFM IN MANHATTAN TO THE SOUND OF A BABY GURGLING IN THE BACKGROUND SINCE SHORTLY AFTER GIVING BIRTH TO HER DAUGHTER IN OCTOBER MS WHITE HAS BEEN BROADCASTING DAILY FROM HER LAUNDRY ROOM IN NORTHERN NEW JERSEY USING EQUIPMENT INSTALLED BY HER EMPLOYER NOT ONLY IS MS WHITE HAPPY BUT WMXV'S HEAVILY FEMALE AUDIENCE OF BABY BOOMERS CAN ALL RELATE TO HER ROLEJUGGLING SAYS ROBERT DUNPHY WMXV'S VICE PRESIDENT PROGRAMMING ANY DRAWBACKS THE BASSET HOUND IS A NUISANCE A PRODUCER SAYS IF SOMEONE COMES TO HER DOOR ALL OF NEW YORK KNOWS IT 9401280085 940128 PEPPERAND SALT KEPT IT TO THE LETTER SHOULDN'T THAT MAKE ME FEEL BETTER ON MY INNER CHILD 9401280084 940128 FORGET CARS SPORTS OR SEX GUYS TODAY WANT TO TALK PCS AND BRAG ABOUT THEM TOO QUESTION WILL BIG CACHE HELP GET A MEGAWOMAN BY CHRISTINA DUFF AND KEN WELLS STAFF REPORTERS OF THE WALL STREET JOURNAL KOFI AMOAH LOVES TO CONVERSE ON THE SUBJECT BUT HE UNDERSTANDS THE LAW OF THE DIGITAL JUNGLE HE DEFERS A QUESTION TO A FRIEND ACROSS THE TABLE IN A NEW YORK BAR WHERE THEY ARE UNWINDING TALK TO HIM HE SAYS HE'S GOT A BIGGER HARD DRIVE A SEAT AWAY TERRY DONOFRIO AND HIS PAL RICH DELIO ARE EXPLORING THE SAME TERRAIN THEY COMPARE MEASUREMENTS YOU'VE ONEUPPED ME SAYS MR DELIO CONCLUDING THAT MR DONOFRIO'S 20INCH MONSTER A COMPUTER MONITOR IS BIGGER THAN HIS IF COMPUTER MASTERY HAS PROVED GENDERLESS COMPUTER TALK IS LARGELY GUY TALK HAVING IN SOME QUARTERS SUPPLANTED CARS SPORTS AND SEX AS THE SUBJECT OF CHOICE AROUND THE WATER COOLER AND AT THE BAR THE LINGO IS OVERTLY MASCULINE AND SOMETIMES OUTRIGHT MACHO IT'S A DISCOURSE SURGING WITH BOASTS AND BRAVADO THE MORE MEGABYTES THE MORE RAM THE BIGGER THE HARD DRIVE THE MORE SPEED THE MORE A PC COSTS THE BETTER INDEED MALE ESTEEM USED TO BE TIED UP IN CARS AND SEXUAL PROWESS MUSES FRED HOAR PRESIDENT OF A COMPUTER CONSULTING CONCERN IN CALIFORNIA'S SILICON VALLEY BUT THESE DAYS AMONG A BURGEONING CLASS OF MALE TECHNOLITERATES MANY MALE EGOS ARE STOKED BY THE POWER AND VALUE OF YOUR TECHNICAL EQUIPMENT AND A FLUENCY IN TECHNORAP HE SAYS MR HOAR EXPLAINS IF A GUY CAN TALK BITS BYTES FEEDS AND SPEEDS YOU KNOW RIGHT AWAY THIS GUY IS A GEEK BUT BEING A GEEK A WORD IN COMPUTER PARLANCE SYNONYMOUS WITH NERD ISN'T BAD IT'S GOOD RUGGED GEEKISM IS THE PATH TO THE INFORMATION SUPERHIGHWAY SAYS MR HOAR BILL GATES THE BILLIONAIRE CHAIRMAN OF MICROSOFT CORP IS A GEEK GEEKS NERDS THEY'RE IN' THE NERDS ARE ALL RICH AND THEY ARE A KIND OF NEW ARISTOCRACY SAYS MARK MACGILLIVRAY A SUNNYVALE CALIF MANAGEMENT CONSULTANT COMPUTERS ARE THE NEW LINGUA FRANCA FOR WOULDBE STUDS THERE ARE WOMEN NERDS OF COURSE LOTS OF THEM BUT WOMEN SEEM LESS COMPELLED TO TALK ABOUT THEIR COMPUTER CONQUESTS OR TO BRAG ABOUT BEING THE FIRST TO GET THEIR HANDS ON A TRIPLECLOCKED INTEL PROCESSOR IT'S A MALE BONDING THING SAYS ELAINE SANTAGELO A MANAGER FOR THE BOSTON COMPUTER SOCIETY NOTING THAT SHE CAN'T GO TO A COCKTAIL PARTY THESE DAYS WITHOUT ENCOUNTERING MEGACLUSTERS OF MEN FEVERISHLY COMPARING HARD DRIVES AND MODEM SPEEDS CELESTE LESTER A RYE NY PC OWNER AND CONSULTANT AGREES SHE SAYS THE MEN IN HER OFFICE ARE CONSTANTLY PRATTLING ON ABOUT ARCANE COMPUTER HARDWARE THE HOTTEST LOCALBUS VIDEO OR HOW MANY EXPANSION SLOTS A TRULY HOT COMPUTER OUGHT TO HAVE MS LESTER MERELY WANTS HER COMPUTER TO WORK EFFICIENTLY WHO CARES HOW POWERFUL YOUR HARDWARE IS SHE SAYS MEN NOT ONLY CARE DEEPLY ABOUT THEIR HARDWARE THEY ALSO VIEW THE COMPUTER AS SOMETHING TO CONQUER THEY WANT TO WHIP THE THING IN LINE AND SHOW IT WHO'S BOSS I DON'T THINK WOMEN GET OFF ON TAMING COMPUTERS SAYS DEBORAH TANNEN AUTHOR OF THE BOOK YOU JUST DON'T UNDERSTAND WOMEN AND MEN IN CONVERSATION THERE ARE OTHER FACTORS AS WELL MANY MEN ARE FINDING IT INCREASINGLY DIFFICULT AND RISKY TO TALK ABOUT WOMEN AND SEX AT LEAST IN THE OFFICE PROFESSIONAL SPORTS WITH PERHAPS THE EXCEPTION OF BASKETBALL SEEM TO BE LOSING THEIR ALLURE CAR MANIA EBBS AND FLOWS BUT BRAGGING ABOUT PORSCHES AND BMWS WENT OUT WITH THE DECADE OF GREED FILLING THIS GAP COMPUTERS WHICH IF CUSTOMIZED WITH A BIG ENOUGH HARD DRIVE A FAST ENOUGH PROCESSOR AND A GIGANTIC SURPLUS OF RAM CAN BE TURNED INTO DIGITAL HOT RODS THAT DON'T BURN GAS OR TAKE UP SPACE IN THE GARAGE PUT ANOTHER WAY COMPUTERS ARE TOYS AND WHEN MEN TALK COMPUTERS THEY SOMETIMES TURN INTO LITTLE BOYS AGAIN SAYS LARRY BUBEL A PUBLICTRANSIT WORKER AND COMPUTER OWNER THAT COMPUTERSPEAK IS SUCH A MASCULINE LANGUAGE RIFE WITH SEXUAL IMAGERY RAM CRAM HOT KEY STACKED DISK AMONG OTHERS ISN'T SURPRISING GIVEN THE OVERWHELMINGLY MALE CONTINGENT AMONG THE ENGINEERS PROGRAMMERS AND ENTREPRENEURS WHO FOUNDED THE COMPUTER INDUSTRY STEVEN MULAIK VICE PRESIDENT FOR A DRUGSTORE CHAIN RECALLS A DECADE AGO WORKING WITH NERDS ON A COMPUTER HELPDESK AT GEORGIA TECH UNIVERSITY BACK THEN NERDS WERE STILL CONSIDERED SOCIALLY INEPT TECHNOBABBLERS AND HIS COWORKERS CONFORMED TO THAT IMAGE BEING GUYS WHO HAD NO LIFE BEYOND STAYING UP ALL NIGHT TALKING TECH HE SAYS TO COMPENSATE THESE SEXUALLY REPRESSED TECHNONERDS INVENTED MANLY SOUNDING TERMS LIKE MEGABYTE ROUGHLY A MILLION BYTES OR BITS OF DIGITAL INFORMATION THAT ALLOWED THEM TO LIVE VICARIOUSLY THROUGH THEIR TECHNOLOGY MR MULAIK ADDS THE NERD OF COURSE HAS BEEN REVENGED AND HIS LANGUAGE IS NOW STARTING TO BECOME OFFICE COLLOQUIAL HE NOTES THE LANGUAGE IS EVEN TRAVELING OUTSIDE OF TECHNOLOGY MEGADEALS DESCRIBE HUGE MERGERS AND ACQUISITIONS MANY OF WHICH ARE FILLED WITH MEGAPROBLEMS THE NEW TECHNOLITERATE MAN PAYS A HIP SMART ATTRACTIVE FEMALE A COMPLIMENT WHEN HE CALLS HER A MEGAWOMAN IT'S QUESTIONABLE HOWEVER WHETHER THE EVOLUTION OF TECHNOSPEAK CAN KEEP UP WITH THE OVERPOWERING URGE AMONG MEN TO UPGRADE THEIR SYSTEMS AND THEN TALK INCESSANTLY ABOUT IT MOST COMPUTERS TODAY ARE STILL USED FOR RATHER MUNDANE PURPOSES LIKE WORD PROCESSING ACCOUNTING GAMES AND CONNECTING TO ONLINE SERVICES VIRTUALLY ALL OF THOSE CAN BE ACCOMPLISHED WITH TODAY'S BAREBONES 486GENERATION COMPUTERS AND EVEN THE BAREBONE 386 MODELS OF A COUPLE OF YEARS AGO TELL THAT TO MR DONOFRIO A WALDWICK NJ CONSULTANT THOUGH HE ADMITS HE PROBABLY DOESN'T NEED IT HE SAYS HE JUST INVESTED IN A STATE OF THE ART PC WITH A BLINDINGLY FAST PENTIUM PROCESSOR I FIGURED WHY WAIT HE SAYS WITH A SHRUG ADDING THAT HE ALSO HAS CDROM AND IS THINKING ABOUT ADDING A SOUND CARD A PERIPHERAL THAT ALLOWS A COMPUTER TO REPRODUCE DIGITAL STEREO SOUND SOME FELLOW CONSULTANTS IN THE BAR CAN'T MATCH MR DONOFRIO'S HARDWARE BUT THEY ARE HAPPY TO CAST ASPERSIONS ON THOSE STILL STUCK IN A 386 OR GOD FORBID 286 RUT I MEAN THOSE ARE ANTIQUES NOW SCOFFS CHUCK HILL A CONSULTANT FROM SARASOTA FLA AND OF COURSE UNLESS YOUR PROCESSOR IS THE NEWEST FASTEST AND MOST SOPHISTICATED YOU GET NO RESPECT HE ADDS IN FACT IN THE VALLEY TRUE POWER USERS ALSO KNOWN AS HEAT SEEKERS CONSIDER IT LAME TO INVEST MERELY IN AN OFFTHESHELF STATEOFTHEART COMPUTER YOU BUY A HIGHEND MACHINE AND THEN UPGRADE THE HELL OUT OF IT NOTES MR MACGILLIVRAY MR HOAR IS ALL TOO WELL AWARE OF THIS THOUGH HE SPEAKS BITS BYTES FEEDS AND SPEEDS HE CONFESSES THAT THE APPLE ON HIS DESK IS A BIT OUTMODED AND THAT HARDLY A DAY GOES BY WITHOUT A MALE COLLEAGUE COMING BY AND TWEAKING HIM FOR NOT UPGRADING HIS SYSTEM WELL HOW BIG IS YOUR HARD DRIVE A QUESTIONER WANTS TO KNOW MR HOAR A BIT EMBARRASSED PERHAPS ISN'T SAYING 9401280083 940128 INTERNATIONAL BRIEF BAYERISCHE MOTOREN WERKE AG AUTO MAKER SAYS ITS BUSINESS WILL REBOUND DURING 1994 WHILE GERMAN AUTOMOBILE OUTPUT IS EXPECTED TO STABILIZE THIS YEAR FOLLOWING LAST YEAR'S BRUTAL PLUNGE BAYERISCHE MOTOREN WERKE AG IN FRANKFURT FORECASTS ITS BUSINESS WILL REBOUND IN 1994 SEPARATELY YESTERDAY GERMANY'S MAIN AUTOMOBILEINDUSTRY TRADE GROUP MADE A PLEA FOR RELIEF FROM HIGH WAGE COSTS JUST AS THE INDUSTRY'S UNION PREPARED TOKEN WARNING STRIKES NEXT WEEK TO PRESSURE EMPLOYERS FOR HIGHER PAY GERMAN AUTO WORKERS ARE ALREADY THE HIGHEST PAID IN THE WORLD THE VDA GERMAN AUTOMOBILE INDUSTRY ASSOCIATION ASSERTED IN A PRELIMINARY REPORT ON ITS 1993 BUSINESS BMW REPEATED ITS CLAIM THAT IT FARED BETTER THAN ITS GERMAN COMPETITION LAST YEAR WHILE RIVAL CAR MAKERS MERCEDESBENZ AG AND VOLKSWAGEN AG EXPECT LOSSES FOR 1993 BMW DECLARED IT HAD A DEFINITE PROFIT THE COMPANY'S 1993 EARNINGS WOULD BE LOWER THAN 1992 LEVELS IT ADDED BUT DIDN'T GIVE ANY FIGURES 9401280082 940128 HEARD ON THE STREET MERRYGOROUND'S DEBT AND STOCK ATTRACT FIDELITY'S HARMETZ EVEN IN BANKRUPTCY COURT BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL BANKRUPTCY FILINGS AREN'T USUALLY A MAGNET FOR INVESTORS BUT THEN AGAIN MERRYGOROUND ENTERPRISES ISN'T YOUR AVERAGE BANKRUPTCYCOURT WARD AT LEAST ONE SAVVY INVESTOR THINKS THE STOCK NOW TRADING AT 3 COULD BE TWICE THAT WITHIN A YEAR THE TOWSON MDBASED RETAILER IS THAT CURIOSITY AMONG BANKRUPTYCOURT DENIZENS A SOLVENT DEBTOR WITH A NET WORTH OF NEARLY 200 MILLION AND CASH WELL ABOVE 100 MILLION LITTLE WONDER THAT THIS RARE DUCK HAS A HUNTER ON ITS TAIL DANIEL HARMETZ OF FIDELITY INVESTMENTS HAS BEEN SNAPPING UP DEBT AND STOCK OF MERRYGOROUND SINCE THE FEDERAL BANKRUPTCYCOURT FILING IN BALTIMORE JAN 11 MR HARMETZ LIKES TO BUY SCADS OF DEBT AT A DISCOUNT TO BLOCK ANY REORGANIZATION PLAN HE DOESN'T LIKE THERE'S CERTAINLY ENOUGH DEBT TO GO AROUND AT MERRYGOROUND THE RETAILER WHICH OPERATES CIGNAL BOOGIES DINER AND MERRYGOROUND STORES OWES 265 MILLION MUCH OF IT TAKEN ON LAST SUMMER WHEN IT ACQUIRED CHESS KING FROM MELVILLE CORP AT THAT TIME MERE MONTHS BEFORE THE BANKRUPTCYCOURT FILING MERRYGOROUND BORROWED ABOUT 65 MILLION THROUGH A PRIVATE PLACEMENT WITH INSURERS AND ABOUT 42 MILLION MORE FROM FOUR BANKS BUT THIS TIME MR HARMETZ IS PLAYING A SLIGHTLY DIFFERENT GAME HE IS NOT ONLY BUYING DEBT BUT STOCK AS WELL CONVINCED THAT A QUICK RESOLUTION TO THE BANKRUPTCYLAW FILING WILL BUOY MERRYGOROUND'S SHARE PRICE IN THE PAST TWO WEEKS HE HAS BOUGHT SLIGHTLY MORE THAN FIVE MILLION SHARES ABOUT 10 OF THE COMPANY'S 539 MILLION SHARES OUTSTANDING THAT PUTS FIDELITY TOETOTOE WITH MERRYGOROUND CHAIRMAN LEONARD WEINGLASS WHO ALSO OWNS ABOUT 10 BUT MR HARMETZ'S BARGAINING POWER COMES FROM FIDELITY'S HUGE STAKE IN MERRYGOROUND'S UNSECURED DEBT SO FAR THE MUTUAL FUND GIANT HAS SWALLOWED AROUND 90 MILLION FACE AMOUNT ACCORDING TO BANKDEBT BROKERS INDEED SAY BROKERS MR HARMETZ HAS BEEN SUCH AN AGGRESSIVE BUYER THAT HE PUSHED THE PRICE OF THE DEBT UP TO ABOUT 88 CENTS ON THE DOLLAR FROM A LOW OF ABOUT 80 CENTS IT'S BEEN A FEEDING FRENZY SAYS TK DUGGAN A FOUNDER OF DELAWARE BAY CO WHICH SPECIALIZES IN DISTRESSED SECURITIES MR HARMETZ DODGED CALLS REQUESTING COMMENT AMONG THE RECENT RUEFUL SELLERS OF DEBT IS PRINCIPAL MUTUAL INSURANCE WHICH LENT MERRYGOROUND 382 MILLION LAST AUGUST AND NEVER RECEIVED A SINGLE INTEREST PAYMENT WE FELT THAT WAS THE BEST RESOLUTION TO A TROUBLED SITUATION SAYS A REPRESENTATIVE OF THE DES MOINES IOWA INSURER THE OTHER PRIVATEPLACEMENT LENDERS MASSACHUSETTS MUTUAL LIFE INSURANCE AND AID ASSOCIATION FOR LUTHERANS ARE HANGING IN FOR THE TIME BEING IN MIDDECEMBER THE FOUR BANKS SIGNET BANKING CS HOLDING'S CREDIT SUISSE BOATMEN'S BANCSHARES AND NATIONAL WESTMINSTER TIGHTENED TERMS FOR FUTURE BORROWINGS BY THE COMPANY BUT WITHIN ONE MONTH THE COMPANY ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS AND THE BANKS BAILED OUT SELLING THEIR DEBT HOLDINGS MR HARMETZ WON'T GIVE UP SO EASILY MR WEINGLASS SAYS THE FUND MANAGER TOLD HIM IN A TELEPHONE CONVERSATION THIS WEEK THAT HE HAD A LOT OF CONFIDENCE IN MANAGEMENT BUT MR HARMETZ ISN'T ALWAYS SO FRIENDLY AS COMANAGER OF FIDELITY'S CAPITAL & INCOME FUND HE AGITATED FOR A TAKEOVER OF RH MACY & CO IN AN EFFORT TO END THAT LENGTHY PROCEEDING MR HARMETZ NOW RUNS SEVERAL FIDELITY FUNDS THAT ARE CLOSED TO SMALL INVESTORS BUT HIS APPETITE FOR MERRYGOROUND SECURITIES IS SO GREAT THAT HE HAS SPRINKLED THEM INTO SEVERAL MUTUAL FUNDS AS WELL THE UPSIDE LOOKS PRETTY GOOD IF THE RETAILER NUDGES UP CASH FLOW AND GETS MERCHANDISE IN THE STORES THAT CUSTOMERS WANT FIDELITY MIGHT SEE THE STOCK DOUBLE SOME INVESTORS FEEL THE BANKS WERE SELFDEFEATINGLY RIGID UNDERMINING THE RETAILER IN THE MIDST OF THE CRUCIAL HOLIDAYS JUST BECAUSE ITS FASHIONS FLOPPED ONE SEASON BUT MERRYGOROUND ISN'T RISKFREE TO EITHER MR HARMETZ OR ANY COSPECULATORS MR HARMETZ PAID SO MUCH FOR HIS DEBT86 CENTS ON THE DOLLAR ACCORDING TO ONE TRADERTHAT THERE ISN'T MUCH UPSIDE LEFT IF IT TAKES LONGER THAN A YEAR FOR MERRYGOROUND TO WORK OUT ITS KINKS MR HARMETZ MIGHT REAP 16 OR SO ON THE INVESTMENT NOT THE HEADY 25 CAPITAL & INCOME POSTED LAST YEAR THE DEBT ACQUIRED FROM PRINCIPAL YIELDS 7 NOT MUCH OF A KICK EVEN IF MR HARMETZ CAN WREST POSTPETITION INTEREST FROM THE COMPANY THAT SITUATION LEADS SOME BANKRUPTCY PLAYERS TO SPECULATE THAT IF A QUICK TURNAROUND DOESN'T WORK MR HARMETZ'S PLAN B IS TO WREST MORE EQUITY FROM THE COMPANY BY VOTING HIS DEBT STAKE TO BLOCK A REORGANIZATION PLAN IF THAT HAPPENED IT COULD DEFLATE THE STOCK 9401280081 940128 LEGAL BEAT NEW LEGAL WEAPON IN ABORTION FIGHT IS HARD TO USE AND HARD TO ENFORCE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ABORTIONRIGHTS ADVOCATES WON A BIG VICTORY IN THE SUPREME COURT THIS WEEK BUT THEIR LEGAL BATTLES AREN'T OVER THE HIGH COURT RULED THAT LAWYERS REPRESENTING ABORTION CLINICS CAN USE THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW KNOWN AS RICO AGAINST ABORTION FOES THE DECISION SAYS KATE MICHELMAN PRESIDENT OF THE NATIONAL ABORTION AND REPRODUCTIVE RIGHTS ACTION LEAGUE PROVIDES A POWERFUL WEAPON TO OPPOSE THE CAMPAIGN OF VIOLENCE AND TERROR AGAINST ABORTION CLINICS BUT PROVING A NATIONAL CONSPIRACY BY OPERATION RESCUE AND ITS ALLIES WILL BE DIFFICULT AMONG THE HURDLES IS THE FIRST AMENDMENT A POTENTIAL SHIELD FOR ANTIABORTION ACTIVISTS WHO MAY HAVE BEHAVED ILLEGALLY BUT NOT VIOLENTLY CIVIL DISOBEDIENCE COULD BE DEFENDED AS THE SORT OF DISSENT THAT IS AT THE HEART OF THE CONSTITUTIONAL RIGHT TO FREE SPEECH AND EVEN IF SUITS FILED UNDER THE RACKETEERING LAW PREVAIL IT MAY BE DIFFICULT TO COLLECT DAMAGES FROM THE LARGE BUT LOOSEKNIT ANTIABORTION MOVEMENT ENACTED IN 1970 RICO IS QUITE BROADLY WORDED AND IN THE 1980S CIVIL RICO SUITS PROLIFERATED THE SUPREME COURT HAS REPEATEDLY REFUSED TO NARROW THE STATUTE'S APPLICATION SAYING THAT'S CONGRESS'S JOB ABORTIONRIGHTS LAWYERS BEGAN USING RICO IN THE 1980S AS A RESPONSE TO WHAT APPEARED TO BE COORDINATED EFFORTS TO FORCE ABORTION CLINICS OUT OF BUSINESS ONLY ONE SUCH SUIT SUCCEEDED A DECISION AFFIRMED IN 1989 BY A FEDERAL APPEALS COURT IN THAT CASE A PHILADELPHIA CLINIC WAS AWARDED 45000 FOR VIOLATIONS OF RICO AND OTHER LAWS AFTER PROTESTERS ASSOCIATED WITH THE PROLIFE COALITION OF SOUTHEASTERN PENNSYLVANIA REPEATEDLY INVADED THE FACILITY KNOCKING DOWN EMPLOYEES AND DAMAGING EQUIPMENT ANTIABORTION ACTIVISTS SAY THE SUPREME COURT'S RICO DECISION WON'T DETER THEM THE MOVEMENT'S LAWYERS PREDICT MORE LITIGATION WE EXPECT A COSTLY ABUSE OF RICO IN THE COURTS THROUGHOUT THE COUNTRY THAT WILL THREATEN ALL ACTIVISTS THAT OPPOSE VARIOUS BUSINESSES SAYS CLARKE FORSYTHE GENERAL COUNSEL FOR AMERICANS UNITED FOR LIFE A LEGAL ARM OF THE ANTIABORTION MOVEMENT THE BATTLE AGAINST THE NATIONAL ORGANIZATION FOR WOMEN IN CHICAGO WHICH LED TO MONDAY'S RULING HAS COST THE ANTIABORTION MOVEMENT CLOSE TO 1 MILLION MR FORSYTHE SAYS NOW IS ACCUSING ANTIABORTION GROUPS OF CONDUCTING A VIOLENT NATIONWIDE CONSPIRACY TO FORCE ABORTION CLINICS TO CLOSE IN ITS UNANIMOUS RULING ISSUED SEVEN WEEKS AFTER ORAL ARGUMENTS A STRIKINGLY SHORT PERIOD THAT INCLUDED THE YEAREND HOLIDAYS THE HIGH COURT STRESSED THAT IT HADN'T CONSIDERED THE MERITS OF NOW'S ALLEGATIONS INSTEAD THE COURT SIMPLY SAID NOW AND ITS ALLIES MAY USE RICO AS A BASIS FOR LAWSUITS RICO'S CIVIL COMPONENTS ARE HIGHLY POTENT BECAUSE THEY ALLOW PLAINTIFFS TO GO AFTER AN ORGANIZATION'S LEADERS EVEN IF THEY WEREN'T AT THE SCENE OF THE ALLEGED MISDEEDS AND IT PERMITS DAMAGES FROM PURPORTED HARM TO BE TRIPLED OUR GOAL IS EXCLUSIVELY TO GO AFTER THE HIGHLEVEL PEOPLE IN OPERATION RESCUE AND THE OTHER MILITANT ANTIABORTION GROUPS NOT THE FOOT SOLDIERS SAYS FAY CLAYTON NOW'S LEAD LAWYER IN THE TRIAL THAT WILL NOW GO FORWARD IN CHICAGO THE SUPREME COURT'S RULING WAS A PROCEDURAL ONE IT SAID THAT TO USE THE RICO STATUTE PLAINTIFFS SUCH AS NOW DON'T HAVE TO PROVE THAT DEFENDANTS HAD AN ECONOMIC MOTIVE NOW WILL HAVE TO SHOW THAT ANTIABORTION ACTIVISTS OPERATED AN INTERSTATE ENTERPRISE BY MEANS OF A PATTERN OF RACKETEERING ACTIVITY THAT MEANS AN ORGANIZATION WHOSE MEMBERS OR AFFILIATES HAVE COMMITTED TWO OR MORE CRIMES FROM A LIST THAT IN THIS CASE INCLUDES PHYSICAL ASSAULTS EXTORTION ARSON AND BOMBING WE WILL NOW GO BACK TO THE US DISTRICT COURT IN CHICAGO AND PROVE THAT THE PROLIFE DEMONSTRATORS DIDN'T ENGAGE IN ANY VIOLATIONS OF THE STATUTE SAYS JAY SEKULOW WHO HELPED REPRESENT ANTIABORTION GROUPS BEFORE THE HIGH COURT SHOWING A PATTERN ISN'T DIFFICULT IN MANY CASES IF THERE ARE MULTIPLE VIOLENT ACTS AND INTIMIDATION SAYS MS CLAYTON BUT THE ENTERPRISE IS HARD TO PROVE BECAUSE MILITANT ANTIABORTION GROUPS TEND TO BE LOOSELY ORGANIZED BECAUSE OF THAT MOST CLINICS WON'T BE ABLE TO USE RICO SHE ADDS THERE ARE ABOUT A DOZEN PENDING RICO SUITS AGAINST ABORTION FOES THE DECISION ALSO COULD ENCOURAGE RICO SUITS AGAINST OTHER TYPES OF PROTEST THAT INVOLVE LAWBREAKING ATTACKS ON MEDICAL LABORATORIES BY ANIMALRIGHTS GROUPS OR MILITANT DEMONSTRATIONS BY GAYRIGHTS ORGANIZATIONS THAT LEAD TO VIOLENCE IN ATTEMPTING TO PROVE A PATTERN OF RACKETEERING NOW HAS RELIED HEAVILY ON THE FEDERAL HOBBS ACT WHICH PROHIBITS EXTORTION AND THREATS OF PHYSICAL VIOLENCE THAT INTERFERE WITH A BUSINESS SUCH AS AN ABORTION CLINIC BUT IF THREATS ARE IMPLIED OR MERELY SCRAWLED ON PLACARDS THE FIRST AMENDMENT MAY BAR THEIR INCLUSION AS A BASIS FOR A RICO SUIT JUSTICE DAVID SOUTER WROTE IN A CONCURRING BRIEF THAT NOTHING IN THE COURT'S OPINION PRECLUDES A RICO DEFENDANT FROM RAISING THE FIRST AMENDMENT IN ITS DEFENSE IN A PARTICULAR CASE THE CONCURRENCE JOINED BY JUSTICE ANTHONY KENNEDY NOTES PRECEDENTS IN WHICH STATES WERE BLOCKED FROM ENFORCING LAWS BANNING SUCH THINGS AS MALICIOUS INTERFERENCE WITH BUSINESS AGAINST CIVILRIGHTS ACTIVISTS WHO BOYCOTTED WHITE MERCHANTS ABORTIONRIGHTS PROPONENTS SAY THEIR RACKETEERING SUITS FOCUS ON VIOLENT OR PERSONALLY MENACING BEHAVIOR NOT ON BOYCOTTS PRAYER PICKETING OR SITINS BUT ENFORCING JUDGMENTS OF TRIPLE DAMAGES WON'T BE EASY ABORTIONRIGHTS LAWYERS SAY THEY HAVE HAD GREAT DIFFICULTY COLLECTING COURT JUDGMENTS FOR VANDALISM OR DISOBEDIENCE OF JUDICIAL ORDERS IN SOME CASES ANTIABORTION GROUPS AND THEIR LEADERS HAVE PLEADED INSOLVENCY OR KEPT ASSETS HIDDEN ACCORDING TO THESE LAWYERS WITH MORE MONEY AT STAKE IN A RICO SUIT THE PLAINTIFFS SAY THEY WILL DIG HARDER ANOTHER FEDERAL LAW WHICH IS LIKELY TO GET CONGRESSIONAL APPROVAL IN COMING MONTHS MAY OVERSHADOW RICO IN THE ABORTION FIGHT THE BILL WOULD MAKE IT A FEDERAL CRIME TO BLOCK WOMEN FROM ENTERING OR LEAVING ABORTION CLINICS IT ALSO WOULD CREATE A NEW BASIS FOR CIVIL SUITS ATTORNEY GENERAL JANET RENO HAS SAID FEDERAL AGENTS WOULD ENFORCE THE BILL'S CRIMINAL PROVISIONS IT'S THE COMBINATION OF LAWS AND CRIMINAL ENFORCEMENT THAT WE HOPE WILL BE A DETERRENT TO FANATICS SAYS KATHRYN KOLBERT OF THE CENTER FOR REPRODUCTIVE LAW & POLICY THE INTERNAL REVENUE SERVICE AGREED TO PAY 500000 TO A MIAMI TRIAL LAWYER WHO A COURT SAID WAS WRONGFULLY IMPRISONED FOR TAX EVASION DANIEL N HELLER SERVED FOUR MONTHS OF A THREEYEAR PRISON SENTENCE IN 1987 BEFORE A FEDERAL APPEALS COURT RELEASED HIM AFTER FINDING THAT IRS AGENTS INTIMIDATED MR HELLER'S ACCOUNTANT INTO COMMITTING PERJURY AT TRIAL MR HELLER SUBSEQUENTLY SUED THREE IRS AGENTS THAT CASE WAS NEARING TRIAL WHEN THE IRS MADE THE UNUSUAL PAYMENT OFFER THIS WEEK BECAUSE A COURT HAD RULED THAT THE AGENTS DIDN'T QUALIFY FOR GOVERNMENTAL IMMUNITY FROM DAMAGES IT WASN'T SURPRISING THAT THE IRS AGREED TO PAY SUCH A LARGE SUM SAID ROBERT H HISHON COCHAIRMAN OF AN AMERICAN BAR ASSOCIATION COMMITTEE ON TAX LAW THE IRS HAD NO COMMENT ON THE AGREEMENT MR HELLER SAID HIS WIFE WILL DONATE THE MONEY TO CHARITIES JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401280080 940128 WHO'S NEWS STONE & WEBSTER INC STONE & WEBSTER INC NEW YORK BEN CHARLSON 64 YEARS OLD WAS NAMED TO THE ADDITIONAL POSITION OF CHAIRMAN AT THE STONE & WEBSTER ENGINEERING CORP UNIT OF THIS ENGINEERING AND CONSTRUCTION CONCERN MR CHARLSON FORMERLY PRESIDENT CONTINUES AS CHIEF EXECUTIVE OFFICER OF THE UNIT THE POSITION OF CHAIRMAN HAD BEEN VACANT FOR ABOUT TWO YEARS S FUAD KOSEOGLU 64 SUCCEEDS MR CHARLSON AS PRESIDENT MR KOSEOGLU WAS MOST RECENTLY AN EXECUTIVE VICE PRESIDENT RICHARD B KELLY 58 FORMERLY SENIOR VICE PRESIDENT WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT AND TWO SENIOR VICE PRESIDENTS WERE NAMED EXECUTIVE VICE PRESIDENTS CHARLES E CROCKER JR 45 AND ROBERT C WIESEL 43 9401280079 940128 BUSINESS BRIEF SOCIETY CORP MERGER PLAN WITH KEYCORP WINS APPROVAL OF THE FED SOCIETY CORP OF CLEVELAND AND KEYCORP ALBANY NY SAID THE FEDERAL RESERVE BOARD APPROVED THE TWO COMPANIES' APPLICATION TO MERGE TO CREATE THE 10TH LARGEST US BANKING ORGANIZATION SHAREHOLDERS OF BOTH BANK HOLDING COMPANIES WILL VOTE ON THE PLAN IN SEPARATE MEETINGS FEB 16 THE TRANSACTION IS EXPECTED TO BE COMPLETED MARCH 1 UNDER THE AGREEMENT KEYCORP SHAREHOLDERS WILL RECEIVE 1205 COMMON SHARES OF THE NEW COMPANY FOR EACH OF THEIR KEYCORP SHARES SHAREHOLDERS OF SOCIETY WILL RETAIN THEIR EXISTING NUMBER OF SHARES THE MERGED COMPANY WILL BE CALLED KEY BANCSHARES INC AND WILL BE BASED IN CLEVELAND WITH NEARLY 60 BILLION IN ASSETS AND BANKING AFFILIATES IN 13 STATES 9401280078 940128 US PLANS TRIAL PROGRAM FOR RAPID TESTING OF MEATS WASHINGTON AGRICULTURE SECRETARY MIKE ESPY SAID HE PLANS TO BEGIN SOON A PILOT PROGRAM FOR MEAT INSPECTION USING MORESCIENTIFIC RAPID TESTING OF CARCASSES THAT COULD REPLACE THE USUAL VISUAL INSPECTION PROCESS MR ESPY ALSO SAID THE DEPARTMENT HAS BEGUN UNANNOUNCED VISITS TO 1000 OF ITS 7000 MEAT AND POULTRY PLANTS TO SEE WHETHER THEIR INSPECTION EFFORTS NEED IMPROVING SIMILAR SURPRISE REVIEWS WERE MADE AT 90 MEAT PLANTS LAST SPRING AND AT 26 TURKEYPROCESSING FACILITIES IN LATE 1993 THE SECRETARY'S REMARKS BEFORE A FOODSAFETY SEMINAR IN NEW YORK WERE MADE A YEAR AFTER HAMBURGER TAINTED BY THE BACTERIA ECOLI KILLED THREE CHILDREN IN WASHINGTON STATE MR ESPY WAS RECENTLY BRIEFED BY AGRICULTURE DEPARTMENT SCIENTISTS ON THE RAPIDDETECTION TEST FOR ECOLI AND OTHER FOODBORNE PATHOGENS AS WELL AS SPRAYS THAT COULD BE USED TO REDUCE BACTERIA ON CARCASSES IN MEATPROCESSING PLANTS AIDES SAID THE PILOT PROGRAM WILL INVOLVE SWABBING SAMPLES OF MEAT MOVING DOWN PRODUCTION LINES AND JUDGING WHETHER UNSEEN PATHOGENS ARE PRESENT A DEPARTMENT SPOKESWOMAN SAID 9401280077 940128 BUSINESS BRIEF GREATER NEW YORK SAVINGS BANK PROFIT MORE THAN DOUBLED FOR PERIOD ON TAX BENEFITS GREATER NEW YORK SAVINGS BANK REPORTED FOURTHQUARTER NET INCOME MORE THAN DOUBLED PREDOMINANTLY DUE TO A RECOGNITION OF 13 MILLION IN TAX BENEFITS THE COMPANY REPORTED NET INCOME OF 12 MILLION OR FIVE CENTS A SHARE UP SHARPLY FROM THE YEAREARLIER PROFIT OF 490000 WITHOUT THE TAX BENEFITS THE COMPANY PROBABLY WOULD HAVE REPORTED A LOSS FOR THE FULL YEAR GREATER NEW YORK RECORDED A 147 MILLION NET LOSS OR 125 A SHARE COMPARED WITH NET INCOME OF 137 MILLION OR 92 CENTS A SHARE LARGELY BECAUSE OF A 15 MILLION LOAN LOSS PROVISION INCURRED IN THE THIRD QUARTER THE COMPANY TOOK A BIG PROVISION TO ACCELERATE THE SALE OF PROBLEM ASSETS HOWEVER NONPERFORMING ASSETS FELL 15 IN THE FOURTH QUARTER TO 186 MILLION WE EXPECT CONTINUED PROGRESS IN THE PLANNED REDUCTION OF NONPERFORMING ASSETS IN THE COMING YEAR SAID GERARD KEEGAN CHAIRMAN AND PRESIDENT 9401280076 940128 INTERNATIONAL BRIEF NKK CORP MANDATORY FURLOUGH PLAN TO EXPAND TO STEELWORKERS NKK CORP PLANS TO EXPAND ITS MANDATORY FURLOUGH PROGRAM TO STEELWORKERS BEGINNING IN APRIL A SPOKESMAN FOR JAPAN'S SECONDLARGEST STEELMAKER SAID THE COMPANY INTENDS TO PROPOSE THE FURLOUGHS TO ITS LABOR UNION IN THE NEAR FUTURE HE SAID MANAGEMENT EMPLOYEES HAVE BEEN STAYING HOME ONE TO TWO WORK DAYS A MONTH SINCE NKK IMPLEMENTED ITS FURLOUGH PROGRAM IN TWO PHASES IN OCTOBER AND NOVEMBER APRIL MARKS THE START OF THE FISCAL YEAR IN JAPAN NIPPON STEEL CORP SUMITOMO METAL INDUSTRIES LTD AND OTHER MAJOR STEELMAKERS HAVE ALREADY ANNOUNCED SUCH FORCED FURLOUGHS FOR RANKANDFILE EMPLOYEES AT NKK SOME 2000 MANAGEMENT EMPLOYEES HAVE BEEN AFFECTED BY THE FURLOUGH PROGRAM THE SPOKESMAN SAID NKK HAS A WORK FORCE OF 23000 BUT PLANS TO TRIM THAT NUMBER BY 3200 OVER THREE YEARS 9401280075 940128 BUSINESS BRIEF RANGER OIL LTD BOARD INSTITUTES RIGHTS PLAN TO HINDER HOSTILE TAKEOVERS RANGER OIL LTD JOINED THE GROWING NUMBER OF CANADIAN ENERGY COMPANIES TAKING STEPS TO WARD OFF HOSTILE TAKEOVERS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID ITS BOARD ADOPTED A SHAREHOLDER BID APPROVAL PLAN INTENDED TO GIVE DIRECTORS AND SHAREHOLDERS TIME TO ASSESS OFFERS FOR COMPANY SHARES AND WHERE APPROPRIATE TO FEND THEM OFF RANGER ANNOUNCED THE DISTRIBUTION OF ONE RIGHT FOR EACH RANGER COMMON SHARE OUTSTANDING AT THE CLOSE OF BUSINESS YESTERDAY UNDER THE PLAN RANGER SAID THAT IF A PERSON OR GROUP ACQUIRES 20 OR MORE OF RANGER'S COMMON SHARES THE RIGHTS WILL ENTITLE THE COMPANY'S OTHER SHAREHOLDERS TO PURCHASE ADDITIONAL RANGER SHARES AT A 50 DISCOUNT FROM THE MARKET RANGER SAID THE PLAN IS IN EFFECT BUT REQUIRES SHAREHOLDER CONFIRMATION AT A MAY 10 ANNUAL MEETING 9401280074 940128 BUSINESS BRIEF GITANO GROUP INC TWO HOLDERS SUE COMPANY WALMART PLOT IS ALLEGED TWO GITANO GROUP INC SHAREHOLDERS SUED GITANO AND WALMART STORES INC ALLEGING THAT THE COMPANIES HAD CONSPIRED TO MISLEAD SHAREHOLDERS ABOUT GITANO'S WEAKENED FINANCIAL CONDITION IN ORDER TO ARTIFICIALLY INFLATE THE MARKET PRICE OF GITANO SHARES CLASSACTION STATUS IS SOUGHT FOR THE CIVIL SUIT FILED YESTERDAY IN US DISTRICT COURT IN MANHATTAN EARLIER THIS WEEK GITANO DECIDED TO PUT ITSELF UP FOR SALE AFTER WALMART ITS BIGGEST CUSTOMER SAID IT WOULD NO LONGER DO BUSINESS WITH GITANO BECAUSE THE APPAREL MAKER HAD PLEADED GUILTY IN DECEMBER TO US CUSTOMS VIOLATIONS ON TUESDAY THREE OF GITANO'S OUTSIDE DIRECTORS RESIGNED AND THE NEW YORK STOCK EXCHANGE APPLIED TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST GITANO THE PLAINTIFFS PETER GERSHON AND JAY GLATZER ARE SEEKING UNSPECIFIED DAMAGES FOR THEMSELVES AND ALL HOLDERS WHO BOUGHT GITANO STOCK BETWEEN APRIL 5 1993 AND JAN 24 1994 GITANO SAID THE COMPLAINT IS TOTALLY WITHOUT MERIT WALMART OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9401280073 940128 LETTERS TO THE EDITOR GENCORP RESTRUCTURING CONTINUES TIRELESSLY I AGREE THAT AMERICA HAS ENTERED A THIRD INDUSTRIAL REVOLUTION AS MICHAEL C JENSEN STATES IN HIS JAN 3 ARTICLE A REVOLUTION ONLY MARKETS COULD LOVE IN FACT WE AGREE SO MUCH WITH THE PREMISE OF THE ARTICLE THAT WE DIVESTED OURSELVES OF GENERAL TIRE SEVEN YEARS AGO UNFORTUNATELY MR JENSEN SUGGESTS GENCORP IS STILL IN THE TIRE BUSINESS AND IS STILL INVESTING IN WHAT HE CORRECTLY IDENTIFIED AS A SHRINKING MARKET WE ARE NOT TO MR JENSEN'S MAIN POINT THAT THE RESTRUCTURINGS BEGINNING IN THE 1980S AND CONTINUING TO THIS DAY HAVE RESULTED IN STRONGER MORE AGILE COMPANIES WE AGAIN AGREE WHOLEHEARTEDLY WE LAUNCHED A RESTRUCTURING PROGRAM IN 1987 THAT FOCUSED GENCORP ON THREE STRATEGIC BUSINESSES AUTOMOTIVE AEROSPACE AND POLYMER PRODUCTS AND SHED OTHER ASSETS INCLUDING TIRES ALONG THE WAY WE BELIEVED AT THE TIME THAT THESE BUSINESSES WERE THE RIGHT ONES FOR GENCORP GIVEN OUR TECHNOLOGICAL CAPABILITIES AND THE GROWTH POTENTIAL OF OUR MAJOR MARKETS AND WHILE THE RESTRUCTURING EFFORTS CONTINUE I CAN REPORT THAT WE ARE REALIZING THOSE GAINS THAT MR JENSEN SUGGESTS SINCE 1987 WE HAVE INCREASED PRODUCTIVITY REDUCED OPERATING COSTS IN OUR CORE BUSINESSES AND MOVED TOWARD A MORE CUSTOMERDRIVEN ORGANIZATION RESEARCH AND DEVELOPMENT SPENDING BY GENCORP 212 MILLION SPENT SINCE 1987 HAS CONCENTRATED ON CORE PROCESSES AND TECHNOLOGIES THAT WILL MAINTAIN OUR COMPETITIVE EDGE AROUND THE WORLD 9401280072 940128 ECONOMY CBO CUTS ITS BUDGET DEFICIT ESTIMATE FORECAST IS SMALLER THAN WHITE HOUSE'S BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BUDGET OFFICE SHARPLY SCALED BACK ITS ESTIMATE OF THE FEDERAL BUDGET DEFICIT PUTTING IT EVEN SMALLER THAN THE WHITE HOUSE HAS PROJECTED IN RECENT DAYS IN TESTIMONY BEFORE THE SENATE BUDGET COMMITTEE CBO DIRECTOR ROBERT REISCHAUER SAID THE DEFICIT WILL SHRINK FROM 223 BILLION IN THE CURRENT FISCAL YEAR TO 171 BILLION IN 1995 AND EVEN NARROWER IN 1996 AS PRESIDENT CLINTON FACES REELECTION MR CLINTON SAID THIS WEEK THAT HIS BUDGET WILL PROJECT A 1995 DEFICIT BELOW 180 BILLION THE DEFICIT IN THE YEAR ENDED SEPT 30 WAS 255 BILLION THE NEW ESTIMATES ARE SLIGHTLY SMALLER THAN THOSE MADE AFTER THE PASSAGE OF THE DEFICITREDUCTION BILL LAST YEAR BACK THEN FOR INSTANCE THE CBO PROJECTED THE 1995 DEFICIT WOULD BE 196 BILLION MR REISCHAUER ASCRIBED THE BRIGHTENED OUTLOOK TO AN IMPROVING ECONOMY LOWERTHANEXPECTED GROWTH IN MEDICARE AND MEDICAID SPENDING AND OTHER REESTIMATES FOR SPENDING ON SUCH THINGS AS FEDERAL DEPOSIT INSURANCE THE DEFICITREDUCTION PROGRAM ESTIMATED AT 433 BILLION OVER FIVE YEARS BY THE CBO AND ABOUT 500 BILLION BY THE WHITE HOUSE AND CONGRESSIONAL DEMOCRATS SEEMS LIKELY TO ACHIEVE THE DESIRED OUTCOME MR REISCHAUER TESTIFIED BUT THE CBO ALSO WARNED THAT THE DEFICIT WILL BEGIN GROWING AGAIN AFTER 1996 UNLESS ACTION IS TAKEN TO RESTRAIN HEALTHCARE SPENDING AMONG OTHER THINGS BY THE YEAR 2004 THE CBO ESTIMATED THE DEFICIT WILL BE 365 BILLION MEASURED AGAINST THE SIZE OF THE ECONOMY THAT'S ROUGHLY THE SAME AS IT WILL BE THIS YEAR THE GOOD NEWS CHEERED DEMOCRATS SUCH AS SEN KENT CONRAD D ND WHO DECLARED WE DID THE RIGHT THING LAST YEAR AND THE CLINTON ADMINISTRATION CELEBRATED TOO WE'VE BEEN TELLING PEOPLE ALL ALONG THAT WE'RE GETTING THE DEFICIT DOWN AND GETTING IT DOWN FASTER THAN WE THOUGHT POSSIBLE AND NOW THERE'S INDEPENDENT CONFIRMATION OF THAT TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS AT A WHITE HOUSE BRIEFING HELD WHILE MR REISCHAUER WAS STILL TESTIFYING REDUCING THE DEFICIT BUDGET DIRECTOR LEON PANETTA ADDED DIDN'T TAKE ANY GIMMICKS IT DIDN'T TAKE A CONSTITUTIONAL AMENDMENT IT TOOK LEADERSHIP CITING THE CBO'S PROJECTIONS THAT THE DEFICIT WILL BEGIN RISING AGAIN AT THE END OF THE DECADE BOTH OFFICIALS UNDERSCORED THE NEED FOR HEALTHCARE REFORM THIS YEAR TO SLOW THE GROWTH IN FUTURE MEDICARE AND MEDICAID SPENDING REPUBLICANS MEANWHILE COMPLAINED THAT MOST OF THE INITIAL DEFICIT REDUCTION RESULTED FROM THE TAX INCREASES IN THE DEMOCRATICPASSED PACKAGES NOT SPENDING CUTS AND THEY WARNED THAT THE ADMINISTRATION'S PENDING HEALTHCARE PACKAGE WOULD SOON WORSEN THE DEFICIT OUTLOOK MR REISCHAUER HIMSELF UNDERSCORED THE POINT AT LEAST FOR THE SHORT TERM ADOPTING A PLAN THAT SUBSTANTIALLY REFORMS THE NATION'S HEALTHCARE SYSTEM MIGHT SLOW THE FUTURE GROWTH OF SUCH SPENDING MR REISCHAUER SAID BUT THAT POSITIVE EFFECT ON THE DEFICIT COULD BE LARGELY OFFSET AT LEAST IN THE SHORTTOINTERMEDIATE TERM BY THE COSTS OF EXTENDING HEALTHCARE COVERAGE TO PEOPLE WHO ARE CURRENTLY UNINSURED IN RESPONSE TO A QUESTION MR BENTSEN ACKNOWLEDGED THE NEED FOR ADDITIONAL DEFICITREDUCTION MEASURES IN THE FUTURE 9401280071 940128 BUSINESS BRIEF IMO INDUSTRIES INC DISPOSAL OF BUSINESS CITED IN LOSS FOR FOURTH QUARTER IMO INDUSTRIES INC LAWRENCEVILLE NJ SAID IT RECORDED A 168 MILLION ANTICIPATED LOSS ON DISPOSAL OF ITS ELECTROOPTICAL SYSTEMS INC BUSINESS AND PLANS WORKFORCE CUTS BY MID1994 THE DISPOSAL DECISION RESULTED IN A FOURTHQUARTER LOSS OF 2456 MILLION OR 1452 A SHARE COMPARED WITH NET INCOME OF 333000 OR TWO CENTS A SHARE ONE YEAR AGO REVENUE DECLINED 24 TO 1531 MILLION FROM 2019 MILLION THE COMPANY WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRONIC AND MECHANICAL CONTROLS AND ENGINEERED POWER PRODUCTS TOOK A 9 MILLION CHARGE TO ACCOUNT FOR A PLAN THAT WILL ELIMINATE 700 JOBS OR 11 OF ITS WORK FORCE THE COMPANY ADDED THAT IT WOULD SEEK A WAIVER FROM THE HOLDERS OF SOME OF ITS DEBT IN ORDER TO BORROW AN ADDITIONAL 35 MILLION FOR WORKING CAPITAL AND LETTERS OF CREDIT IMO WHICH ANNOUNCED ITS RESULTS AFTER THE MARKET CLOSED FINISHED DOWN 125 CENTS AT 8 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9401280070 940128 BUSINESS BRIEF CROSSLAND FEDERAL SAVINGS BANK FOURTHPERIOD PROFIT SOARED AS COST OF BAD LOANS SLID CROSSLAND FEDERAL SAVINGS BANK NEW YORK SAID FOURTHQUARTER EARNINGS SOARED BECAUSE OF A SHARP DROP IN THE COST OF BAD DEBTS CROSSLAND REPORTED NET INCOME OF 134 MILLION OR 109 A SHARE COMPARED WITH THE YEAREARLIER 844000 THE PROVISION FOR LOAN LOSSES FELL TO 3 MILLION FROM 12 MILLION NONPERFORMING ASSETS DROPPED SHARPLY FOR THE FULL YEAR THE 45 BILLIONASSET SAVINGS BANK REPORTED A NET LOSS OF 189 MILLION COMPARED WITH 1992 PROFIT OF 422 MILLION THE 1993 RESULTS INCLUDE A 1859 RESTRUCTURING CHARGE RELATED TO THE COMPANY'S INITIAL PUBLIC OFFERING LAST AUGUST CROSSLAND DIDN'T GIVE PERSHARE FIGURES FOR THE YEAR EARLIER 9401280069 940128 INTERNATIONAL COLOMBIA SELLS CONCESSIONS FOR 3 CELLULARPHONE AREAS A WALL STREET JOURNAL NEWS ROUNDUP COLOMBIA HAS SOLD THREE CELLULARTELEPHONE CONCESSIONS TO TWO SEPARATE INVESTOR GROUPS FOR A TOTAL OF 621 MILLION IN ANOTHER SIGN THAT LATIN AMERICAN COMMUNICATIONS PROPERTIES ARE HEATING UP AN INVESTOR GROUP CALLED CELUMOVIL SA LAUNCHED A 461MILLION WINNING BID FOR TWO CONCESSIONS ONE OF WHICH INCLUDES THE POTENTIALLY LUCRATIVE BOGOTA MARKET CURRENTLY THERE IS NO LARGE CELLULAR NETWORK IN COLOMBIA THE INVESTOR GROUP INCLUDES THE LARGE COLOMBIAN FIRM GRUPO SANTO DOMINGO MCCAW CELLULAR COMMUNICATIONS LCC A PRIVATELY HELD ARLINGTON VA TELECOMMUNICATIONS FIRM PRIVATE INVESTORS AND CHASE MANHATTAN BANK A UNIT OF CHASE MANHATTAN CORP WHICH ALSO ARRANGED FINANCING FOR THE DEAL MANUEL VICENTE DE LA PAVA VICE PRESIDENT AT CHASE SAYS CELUMOVIL WILL SPEND 120 MILLION TO 250 MILLION OVER THE NEXT THREE YEARS TO GET THE CELLULAR NETWORK UP AND RUNNING THE GROUP HOPES TO HAVE ABOUT 80000 SUBSCRIBERS BY 1997 THE THIRD CONCESSION IN COLOMBIA'S WESTERN REGION WAS AWARDED TO THE COCELCO INVESTOR GROUP FOR 160 MILLION THE GROUP IS MADE UP OF PRIVATE INVESTORS TELEFONICA OF SPAIN AND CIA DE TELEFONOS DE CHILE 9401280068 940128 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 COMERICA BANKILLINOIS 75 MILLION OF MEDIUMTERM NOTES DUE JAN 31 1995 PRICED AT PAR TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO COMERICA BANKILLINOIS IS A UNIT OF COMERICA INC FEDERAL HOME LOAN BANK SYSTEM 150 MILLION OF NOTES DUE FEB 3 1997 PRICED INITIALLY AT PAR TO YIELD 457 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF 17 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK SYSTEM 125 MILLION OF FLOATINGRATE NOTES DUE FEB 4 1997 PRICED WEDNESDAY AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL RESET DAILY AND PAY QUARTERLY AT A SPREAD OF 78 BASIS POINTS ABOVE 50 OF THE PRIME RATE THE FIRST COUPON IS TO BE SET ON FEB 4 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST CHICAGO CAPITAL MARKETS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE FEB 10 1999 PRICED AT PAR TO YIELD 45 ACCORDING TO MCM CORPORATEWATCH THE COUPON ON THE NONCALLABLE NOTES STEPS UP TO 562 ON FEB 10 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PETROLEUM HEAT & POWER CO 75 MILLION OF SUBORDINATED DEBENTURES DUE FEB 1 2006 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP PLAYTEX FAMILY PRODUCTS CORP 360 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED WEDNESDAY AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PLAYTEX FAMILY PRODUCTS IS A UNIT OF PLAYTEX PRODUCTS INC TURNER BROADCASTING SYSTEM INC 450 MILLION OF DEBT IN TWO PARTS PRICED BY UNDERWRITERS GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF SENIOR NOTES DUE FEB 1 2004 WAS PRICED AS 74S AT 99845 TO YIELD 7422 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 175 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF SENIOR DEBENTURES DUE FEB 1 2004 WAS PRICED AS 84S AT 99922 TO YIELD 8407 THE DEBENTURES WHICH ARE NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 203 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P ANESTA CORP INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 1250 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES DAIMLERBENZ AG 15 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 4675 APIECE THROUGH UNDERWRITERS LED BY CJ LAWRENCE/DEUTSCHE BANK MERRILL LYNCH & CO AND GOLDMAN SACHS & CO EACH ADR REPRESENTS ONE TENTH OF A SHARE IN THE GERMAN CAR MAKER AND THE OFFERING REPRESENTS 15 MILLION SHARES OR 32 OF DAIMLER'S SHARE CAPITAL JAMESON INNS INC INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 9 APIECE THROUGH UNDERWRITERS LED BY COMMONWEALTH ASSOCIATES INTERIM SERVICES INC INITIAL OFFERING OF 10 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TELULAR CORP INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC AND ALEX BROWN & SONS INC ILLINOIS 100 MILLION SALESTAX REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 49593 YIELDS RANGE FROM 275 IN 1995 TO 53 IN 2019 MOODY'S HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A TRIPLEA RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 11 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES STRIPS TRUST 255 BACKED BY THE AGENCY'S STRIPPED 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 176 MONTHS UNDERWRITERS INCLUDE MERRILL LYNCH & CO KIDDER PEABODY & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP GOLDMAN SACHS & CO GREENWICH CAPITAL MARKETS INC SALOMON BROTHERS INC PAINEWEBBER INC LEHMAN BROTHERS INC SMITH BARNEY HARRIS UPHAM & CO AND PRUDENTIAL SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITICORP THE OFFERING SERIES 199430 IS BACKED BY FANNIE MAE 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS CHRYSLER CORP 15 BILLION ISSUE OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR PARTS BY UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE DEAL PREMIER AUTO TRUST 19941 IS BACKED BY AUTO AND LIGHTTRUCK RECEIVABLES ORIGINATED BY CHRYSLER FINANCIAL CORP AND SERVICED BY CHRYSLER CREDIT CORP BOTH CHRYSLER SUBSIDIARIES THE 315 MILLION IN CLASS A1 MONEYMARKET NOTES WERE PRICED AS 328S AT PAR FOR A BONDEQUIVALENT YIELD OF 3303 THE CERTIFICATES WITH AN AVERAGE LIFE OF 04 YEAR WERE RATED P1 BY MOODY'S AND SINGLE A1PLUS BY S&P THE 500 MILLION CLASS A2 FLOATINGRATE NOTES WERE PRICED AT PAR TO FLOAT NINE BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO AN 11 CAP THE NOTES HAVE AN AVERAGE LIFE OF 125 YEARS AND WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 6287 MILLION IN CLASS A3 TOTAL RATEOFRETURN BONDS WERE PRICED AS 475S AT 999932 TO YIELD 48 A 40BASISPOINT SPREAD ABOVE THE TREASURY'S 4375 NOTES OF NOVEMBER 1996 THE NOTES WITH AN AVERAGE LIFE OF 275 YEARS WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 563 MILLION IN CLASS B SUBORDINATE CERTIFICATES WERE PRICED AS 47S AT 999077 ITO YIELD 479 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S 4 NOTES OF JANUARY 1996 THE CERTIFICATES WERE RATEDSINGLEA SOCIETY NATIONAL BANK 2347 MILLION OF STUDENTLOAN ASSETBACKED CERTIFICATES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE ISSUE SOCIETY STUDENT LOAN TRUST 1994A IS BACKED BY STUDENT LOANS THE 55 MILLION IN CLASS A1 FLOATINGRATE NOTES WERE PRICED WITH AN INITIAL COUPON OF 3265 AT PAR TO FLOAT 14 BASIS POINTS ABOVE THE ONEMONTH LIBOR THE CERTIFICATES HAVE AN AVERAGE LIFE OF 111 YEARS THE 1586 MILLION IN CLASS A2 FLOATINGRATE ASSETBACKED NOTES WERE PRICED WITH AN INITIAL COUPON OF 3455 AT PAR TO FLOAT 33 BASIS POINTS ABOVE ONEMONTH LIBOR THE FIRST TWO CLASSES WERE ENHANCED BY AN 8 RESERVE FUND AND 10 SUBORDINATION THE 211 MILLION IN CLASS A3 FLOATINGRATE NOTES WERE PRICED WITH AN INITIAL COUPON OF 3675 AT PAR TO FLOAT 55 BASIS POINTS ABOVE ONEMONTH LIBOR IT HAS A 991YEAR PRINCIPAL LOCKOUT PERIOD THE CLASS WAS ENHANCED BY AN 8 RESERVE FUND AND A 100 SURETY BOND PROVIDED BY CAPITAL MARKETS ASSURANCE CORP THE ISSUE WAS RATED TRIPLEA BY BOTH MOODY'S AND S&P AUSTRIA SOVEREIGN ONE BILLION DUTCH GUILDERS OF 625 EUROBONDS DUE FEB 28 2024 AT ISSUE PRICE 988 VIA ABN AMRO BANK NV REOFFERED AT 9815 TO YIELD 639 MARGIN OF 16 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES 1 AUTOBAHNENUND SCHNELLSTRASSENFINANZIERUNGS AG AUSTRIA ONE BILLION AUSTRIAN SCHILLINGS OF 5625 BONDS DUE FEB 17 2004 AT ISSUE PRICE 10005 VIA CREDITANSTALTBANKVEREIN REOFFERED AT 9815 TO YIELD 587 GUARANTOR REPUBLIC OF AUSTRIA FEES 2125 CAISSE CENTRALE DE CREDIT IMMOBILIER FRANCE TWO BILLION FRENCH FRANCS OF 6 EUROBONDS DUE FEB 21 2002 AT ISSUE AND REOFFER PRICE 9792 VIA CAISSE DES DEPOTS ET CONSIGNATIONS BONDS YIELD 634 A MARGIN OF 70 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 035 CREDIOP OVERSEAS BANK LTD ITALIAN PARENT 200 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1999 AT ISSUE AND REOFFER PRICE 9965 VIA CREDIT SUISSE FIRST BOSTON LTD PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 15 BASIS POINTS GUARANTOR CREDIOP SPA FEES 020 DSL FINANCE NV GERMAN PARENT 15 BILLION FRENCH FRANCS OF 575 EUROBONDS DUE FEB 23 2004 AT ISSUE AND REOFFER PRICE 9867 VIA DEUTSCHE BANK FRANCE SNC AND BANQUE INDOSUEZ BONDS YIELD 593 A MARGIN OF 22 BASIS POINTS OVER COMPARABLE FRENCH TREASURY GUARANTOR DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK FEES 0375 HELABA FINANCE BV AMSTERDAM GERMAN PARENT 200 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE FEB 25 2004 AT ISSUE PRICE 100445 VIA DAIWA EUROPE LTD REOFFERED AT 9877 TO YIELD 667 A MARGIN OF 18 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR LANDESBANK HESSENTHUERINGEN GIROZENTRALE FEES 2 LAB INVESTMENTS PLC SPECIALPURPOSE VEHICLE 85 MILLION OF ASSETBACKED 7125 EUROBONDS DUE FEB 18 2019 AT ISSUE AND PRICE 99383 VIA NATWEST CAPITAL MARKETS BONDS YIELD 721 A MARGIN OF 70 BASIS POINTS OVER COMPARABLE BRITISH GILT ISSUE SECURED ON LOAN INSTRUMENTS ISSUED BY LONDON BOROUGH OF ENFIELD MANCHESTER BOROUGH COUNCIL AND CITY OF YORK FEES UNDISCLOSED PAYABLE SEMIANNUALLY LKB FINANCE NV GERMAN PARENT 300 BILLION LIRE OF 78 EUROBONDS DUE MARCH 8 2004 AT ISSUE PRICE 10175 VIA CREDITO ITALIANO BONDS YIELD 784 AFTER FULL FEES OF 2 GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG ONTARIO CANADIAN PROVINCE 2 BILLION OF GLOBAL FLOATINGRATE NOTES DUE AUG 17 1999 AT ISSUE AND REOFFER PRICE 99595 VIA LEHMAN BROTHERS INC AND MERRILL LYNCH & CO PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR FLAT BONDS YIELD EIGHT BASIS POINTS OVER LIBOR FEES 015 TEM FATHINGFUNG HOLDING LTD HONG KONG 50 MILLION OF PRIVATELY PLACED CONVERTIBLE NOTES CARRYING INDICATIVE COUPON BETWEEN 225 AND 275 DUE FEB 27 2002 AT PAR VIA SG WARBURG AND CO GENEVA NOTES CONVERTIBLE FROM FEB 25 TO FEB 10 2002 AT EXPECTED 10 TO 15 PREMIUM OVER CLOSING SHARE PRICE FEB 2 WHEN TERMS ARE TO BE FIXED FEES 2125 TOYOBO CO JAPAN FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE FEB 17 1998 AT ISSUE PRICE PAR VIA DKB INTERNATIONAL PLC PAYABLE QUARTERLY AT THREEMONTH YEN LIBOR PLUS 275 BASIS POINTS FEES 02 THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S 250 MILLION ISSUE OF STEPUP MEDIUMTERM NOTES DUE FEB 10 1999 WAS PRICED AT PAR TO YIELD 45 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE CALLABLE ON FEB 10 1995 AT THAT TIME THE COUPON ON THE NOTES STEPS UP TO 562 IN FRIDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE NOTES WERE NONCALLABLE THE FIRST TWO CLASSES OF A SOCIETY NATIONAL BANK 2347 MILLION STUDENTLOAN ASSETBACKED SECURITIES ISSUE HAVE 9 SUBORDINATION THE BANK IS A UNIT OF SOCIETY CORP THE SUBORDINATION IS THE PORTION OF THE ISSUE SET ASIDE TO PROTECT HOLDERS OF THE FIRST TWO CLASSESA1 AND A2FROM LOSS THE HOLDERS OF THESE TWO CLASSES HAVE THE RIGHT TO RECEIVE PRINCIPAL AND INTEREST BEFORE THE HOLDERS OF THE THIRD CLASS B1 THE FIRST TWO CLASSES ARE FLOATINGRATE NOTES AND THE THIRD CLASS IS FLOATINGRATE CERTIFICATES IN FRIDAY'S NEW SECURITIES ISSUES COLUMN THE SUBORDINATION OF THE FIRST TWO CLASSES WAS MISSTATED AS 10 AND THE THIRD CLASS WAS MISIDENTIFIED AS A3 9401280067 940128 BUSINESS BRIEF SOFTKEY SOFTWARE PRODUCTS INC SHAREHOLDERS BACK MERGER WITH WORDSTAR SPINNAKER SHAREHOLDERS OF SOFTKEY SOFTWARE PRODUCTS INC APPROVED THE MERGER OF THE TORONTO COMPANY WITH TWO US SOFTWARE CONCERNS WORDSTAR INTERNATIONAL INC OF NOVATO CALIF AND BOSTONBASED SPINNAKER SOFTWARE CORP UNDER THE TERMS OF THE COMPLEX COMBINATION OF THE THREE SOFTWARE CONCERNS SOFTKEY SHAREHOLDERS WILL RECEIVE 326 SHARES OF WORDSTAR WHICH IN TURN WILL CONTROL ALL VOTING SHARES OF THE NEW ENTITY SOFTKEY INTERNATIONAL INC THE COMPANY EXPECTS TO CONSOLIDATE THE WORDSTAR SHARES ON A 10FOR1 BASIS ONCE THE MERGER IS CONCLUDED SOFTKEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL PERIK SAID HE EXPECTS THE MERGER TO RECEIVE FINAL APPROVAL FROM A CANADIAN COURT AND TAKE EFFECT NEXT WEEK 9401280066 940128 MARKETING BRIEF AMERICAN EXPRESS CO SUIT AGAINST VISA TAKES ISSUE WITH RESTAURANT NEWSLETTER AMERICAN EXPRESS CO REVIVED ITS COMPLAINT THAT VISA US A FALSELY CLAIMS IN ITS PROMOTIONAL MATERIAL THAT MERCHANTS HAVE QUIT ACCEPTING THE AMERICAN EXPRESS CARD THE LAWSUIT FILED IN US DISTRICT COURT IN NEW YORK BY AMERICAN EXPRESS TRAVEL RELATED SERVICES CO SAID A NEWSLETTER DISTRIBUTED TO RESTAURANTS AND ALLEGEDLY UNDERWRITTEN BY VISA FALSELY STATES THAT CHEF WOLFGANG PUCK STOPPED ACCEPTING THE AMERICAN EXPRESS CARD AT SEVERAL RESTAURANTS IN CALIFORNIA AND NEVADA AFTER CONDUCTING A TEST AMONG CUSTOMERS VISA SPOKESMAN GREGORY HOLMES SAID THE NEWSLETTER WAS INACCURATE AND A CORRECTION WILL APPEAR IN THE NEXT EDITION STATING THE AMERICAN EXPRESS CARD IS ACCEPTED AT CHINOIS ON MAIN IN SANTA MONICA CALIF AND SPAGO IN LAS VEGAS THE SUIT SEEKS TO ENJOIN ALLEGED FALSE ADVERTISING AND UNSPECIFIED DAMAGES 9401280065 940128 BROKER KHAN'S ASSOCIATIONS SCRUTINIZED BY JOHN R EMSHWILLER AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL LA CANADA CALIF IN HALF A DECADE AS A HOT INSTITUTIONAL BROKER RAFI KHAN BUILT AN ENVIABLE REPUTATION FOR PICKING STOCKS THAT SUBSEQUENTLY SOARED IN VALUE NOW THE 43YEAROLD PAKISTANI NATIVE IS THE SUBJECT OF LOTS OF UNWANTED ATTENTION HIS ASSOCIATIONS WITH THE POWERFUL MONEY MANAGERS AND SWINDLERS WITH WHOM HE HAS RUBBED ELBOWS ARE COMING UNDER INCREASED SCRUTINY BY LAWENFORCEMENT OFFICIALS AND OTHERS FEDERAL INVESTIGATORS RECENTLY SUBPOENAED ALL OF MR KHAN'S TRADING RECORDS FROM A STOCK BROKERAGE FIRM THAT HE PARTLY OWNS AND THAT ALSO EMPLOYS A CANADIAN STOCK SWINDLER THE FEDERAL BUREAU OF INVESTIGATION HAS BEEN ASKING ABOUT MR KHAN'S DEALINGS WITH ANOTHER CONVICTED SWINDLER WHOSE FAMILY HAS A 40 STAKE IN A SMALL OVERTHECOUNTER COMPANY IN WHICH MR KHAN HAS BEEN TRADING RECENTLY SAYS ONE FORMER EMPLOYEE OF MR KHAN SOME CANADIAN AND US REGULATORS HAVE BEGUN INFORMAL INQUIRIES INVOLVING SOME OF THE STOCKS MR KHAN HAS BACKED AND THE FUNDS THAT HAVE PURCHASED THEM THESE DEVELOPMENTS FOLLOW THE REQUEST BY A FEDERAL JUDGE IN NEW YORK THAT THE JUSTICE DEPARTMENT INVESTIGATE WHETHER MR KHAN COMMITTED PERJURY IN TESTIMONY HE GAVE AS PART OF A BATTLE THAT HE IS WAGING FOR CONTROL OF ICN PHARMACEUTICALS INC FOR HIS PART MR KHAN DENIES ANY WRONGDOING AND SAYS HE HAS NEVER BEEN CHARGED WITH A CRIME ALL THAT INVESTIGATORS WILL GET BY LOOKING THROUGH HIS TRADING RECORDS IS A HEADACHE HE SAYS DURING A LENGTHY INTERVIEW AT HIS HOME HERE WHICH DOUBLES AS HIS OFFICE HOWEVER MR KHAN DOES EXPRESS BITTERNESS AND FRUSTRATION AT WHAT HE FEELS IS THE UNFAIR TREATMENT HE IS RECEIVING AT THE HANDS OF GOVERNMENT OFFICIALS THE NEWS MEDIA AND SOME OF HIS LONGTIME MUTUALFUND CLIENTS WHO HE SAYS HAVE SHUNNED HIM IN RECENT WEEKS MR KHAN CONCEDES THAT SOME OF THAT WARINESS IS UNDERSTANDABLE GIVEN THE BAD PUBLICITY HE HAS BEEN RECEIVING PART OF THE COVERAGE WAS SPARKED BY THE FIRING LAST MONTH OF PROMINENT MUTUALFUND MANAGER JOHN KAWESKE WHO WAS DISMISSED BY DENVERBASED INVESCO FUNDS GROUP FOR ALLEGEDLY VIOLATING THE FIRM'S EMPLOYEE STOCKTRADING RULES MR KAWESKE HAS DENIED ANY WRONGDOING MR KHAN WAS PUT IN THE SPOTLIGHT PARTLY BECAUSE HE HAD WORKED CLOSELY WITH MR KAWESKE THE FUND MANAGER HAD PURCHASED A NUMBER OF THE BROKER'S FAVORITE STOCKS EITHER FOR INVESCO OR HIS OWN PERSONAL STOCK PORTFOLIO HOWEVER INVESCO HAS DENIED THAT MR KAWESKE'S DISMISSAL WAS CONNECTED TO HIS DEALINGS WITH MR KHAN THE BROKER BLAMES HIS CURRENT WOES ON WHAT HE CALLS A DESPICABLE CAMPAIGN BY ICN MANAGEMENT THAT HAS INCLUDED THE FILING OF A LAWSUIT CHARGING MR KHAN WITH FRAUD HIRING PRIVATE DETECTIVES TO DELVE INTO HIS PAST AND RUNNING FULLPAGE NEWSPAPER ADS ATTACKING HIS CREDIBILITY ICN MANAGEMENT SAYS IT IS OPTIMISTIC THAT IT WILL WIN A SHAREHOLDER VOTE SET FOR TUESDAY MR KHAN DECLINES TO PREDICT THE OUTCOME YET MR KHAN'S TROUBLES ALSO SEEM CONNECTED TO SOME BROADER WORRIES PERCOLATING THROUGH THE SECURITIES BUSINESS REGULATORS PRIVATELY QUESTION WHETHER HIGHPOWERED STOCK PROMOTERS AND BROKERS HAVE DEVELOPED TOO COZY A RELATIONSHIP WITH SOME FUND MANAGERS THEY WORRY THAT SOME MANAGERS MAY BE GETTING IMPROPER INDUCEMENTS TO PURCHASE CERTAIN STOCKS FOR THEIR FUNDS WHILE NO ONE HAS CITED ANY SPECIFIC EVIDENCE OF WRONGDOING BY MR KHAN SOME REGULATORS MENTION HIM AS THE KIND OF PERSON WHOSE DEALINGS THEY WANT TO EXAMINE MORE CLOSELY MR KHAN CERTAINLY HAS HAD A CAREER TO ATTRACT ATTENTION A LONGTIME INSURANCE ACTUARY HE BECAME A STOCKBROKER ONLY ABOUT SIX YEARS AGO LANDING A JOB AT A REGIONAL FIRM IN LOS ANGELES HE SOON BEGAN ATTRACTING INSTITUTIONAL CLIENTS WITH HIS COMBINATION OF ASTUTE PICKS AND FLAMBOYANCE HIS COMPANY ANALYSES DONE IN WHAT MR KHAN CALLS HIS NATIONAL ENQUIRER STYLE FEATURE LARGE BOLD TYPE CAPITAL LETTERS AND PROVOCATIVE HEADLINES SUCH AS HIS DESCRIPTION OF A FAVORED KENTUCKY LIFEINSURANCE COMPANY AS FINGERLICKIN' GOOD RAFI IS ONE OF THE MOST INCISIVE AND IMAGINATIVE PEOPLE IN HIS TRADE SAYS SETH GLICKENHAUS FOUNDER AND PRESIDENT OF GLICKENHAUS & CO A NEW YORK MONEY MANAGER THE CURRENT FBI INQUIRY INTO MR KHAN IS LOOKING IN PART AT HIS ACTIVITIES AT THE BEVERLY HILLS CALIF BROKERAGE FIRM REYNOLDS KENDRICK STRATTON LAST YEAR MR KHAN WENT TO WORK AT REYNOLDS KENDRICK AND INVESTED 500000 AS PART OF A NEW OWNERSHIP GROUP AT THE FIRM TO HELP RUN THE FIRM THE NEW OWNERSHIP BROUGHT IN IRVING KOTT A CONVICTED CANADIAN STOCK SWINDLER WITH AN INTERNATIONAL RECORD OF CRIMINAL AND REGULATORY PROBLEMS DATING BACK TO THE 1970S MR KHAN SAYS HE HAD NOTHING TO DO WITH THAT HIRING AND LEFT THE FIRM AFTER HE LEARNED OF MR KOTT'S PAST HOWEVER HE RETAINS HIS 7 OWNERSHIP INTEREST IN THE BROKERAGE FIRM A REYNOLDS KENDRICK SPOKESMAN SAYS THE US ATTORNEY'S OFFICE IN NEW YORK HAS SUBPOENAED ALL OF MR KHAN'S TRADING RECORDS AT THE FIRM AS FOR MR KOTT HE IS STILL A CONSULTANT AT THE FIRM THE SPOKESMAN SAYS MR KOTT COULDN'T BE REACHED TO COMMENT KRISTINA KRAVERICA A 23YEAROLD FORMER ASSISTANT TO MR KHAN SAYS SHE WAS RECENTLY CONTACTED BY FBI AGENTS WHO INQUIRED ABOUT THE BROKER'S DEALINGS WITH SHERMAN MAZUR A LOS ANGELES REALESTATE SYNDICATOR WHO IS SERVING A SIXYEAR FEDERAL PRISON SENTENCE FOR FRAUD BEFORE HIS INCARCERATION MR MAZUR WAS A NEARLY FULLTIME CONSULTANT TO GERANT INDUSTRIES INC A BEVERLY HILLS FIRM THAT IS 40OWNED BY MR MAZUR AND HIS FAMILY IN RECENT MONTHS MR KHAN HAS PLACED ABOUT 10 OF GERANT'S 130 MILLION SHARES WITH SOME OF HIS MAJOR INSTITUTIONAL CLIENTS MR KHAN ACKNOWLEDGES HE ALSO HELPED PERSUADE HIS NEW EMPLOYER PHOENIXBASED DESERT MOUNTAIN SECURITIES TO BECOME A MARKET MAKER FOR GERANT MR KHAN SAYS HE THOUGHT THE STOCK OF GERANT WHICH HAS INTERESTS IN BLOODPLASMA CENTERS AND REAL ESTATE HAD POTENTIAL TO INCREASE SUBSTANTIALLY THE STOCK CLOSED YESTERDAY IN NASDAQ STOCK MARKET TRADING AT 625 CENTS A SHARE UNCHANGED MR KHAN SAYS HE MET MR MAZUR ON A FEW OCCASIONS MOSTLY OF A SOCIAL NATURE INCLUDING A COUPLE OF RACQUETBALL GAMES HE SAYS HE KNEW OF MR MAZUR'S LEGAL TROUBLES BUT THAT DIDN'T DETER HIS INTEREST IN GERANT MR KHAN SAYS HIS DEALINGS WITH MR MAZUR WERE COMPLETELY ABOVEBOARD DESPITE ALL OF THE RECENT DIVERSIONS MR KHAN SAYS HE IS TRYING TO KEEP FOCUSED ON TUESDAY'S SHOWDOWN WITH ICN MANAGEMENT HE SAYS HE HAS SPENT 2 MILLION OF HIS OWN MONEY IN THE FIGHT AND GONE NEARLY BROKE IN THE PROCESS EVEN IF HE LOSES THE ICN FIGHT MR KHAN VOWS HE WILL BE BACK FIGHTING TO REGAIN HIS CLIENTS AND HIS PLACE IN THE SECURITIES BUSINESS HE HAS NO DOUBT THAT HE CAN POINTING TO A STACK OF HIS OWN RESEARCH REPORTS ON HIS DESK HE PROCLAIMS YOU WON'T FIND TALENT LIKE THAT ANYWHERE ELSE 9401280064 940128 A YEN TO MANIPULATE BY JUDY SHELTON NOW THAT THE CLINTON ADMINISTRATION HAS ESTABLISHED ITS FREETRADE CREDENTIALS BY CHAMPIONING THE CAUSE OF REDUCED TARIFFS AND LOWER TRADE BARRIERS ACROSS NORTH AMERICA AND THROUGHOUT THE WORLD HOW IS IT GOING TO FRAME THE CONTINUING DISPUTE BETWEEN THE US AND JAPAN ITS SECONDLARGEST TRADE PARTNER THE WORRISOME ANSWER IS THAT THE US IS COMING DANGEROUSLY CLOSE TO CEDING THE MORAL HIGH GROUND TO JAPAN IN THE DEBATE OVER THE DUBIOUS MERITS OF MANAGED TRADE AND NUMERICAL TARGETS FOR SELECTED INDUSTRIES EVEN WORSE THE CLINTON ADMINISTRATION SEEMS PREPARED TO UNDO MUCH OF ITS PROGRESS TOWARD ACHIEVING AN OPEN GLOBAL ECONOMY BY RESERVING THE RIGHT TO CHANGE THE MONETARY TERMS OF TRADE WHENEVER IT DEEMS A NATION GUILTY OF SELLING TOO MANY GOODS TO AMERICAN CONSUMERS RELYING ON EXCHANGERATE MOVEMENTS TO COMBAT A TRADE SURPLUS MAKES A MOCKERY OF THE DOCTRINE OF FREE TRADE DOES IT MAKE SENSE TO HAVE PERSEVERED THROUGH THE WRENCHING URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ACHIEVING A REDUCTION IN THE AVERAGE TARIFF AMONG 116 COUNTRIES TO 28 FROM 47 OVER A PERIOD OF SEVERAL YEARS ONLY TO SEE EXCHANGE RATES MOVE 15 OR 20 IN A MATTER OF MONTHS WIPING OUT THE REWARDS OF LEGITIMATE COMPETITION WITH CURRENCY LOSSES WHEN A GOVERNMENT ACTS DELIBERATELY TO WEAKEN THE VALUE OF ITS MONEY AGAINST OTHER CURRENCIES EFFECTIVELY RAISING PRICES ON IMPORTED GOODS AND PUNISHING FOREIGN COMPETITORS IT IS PRACTICING THE MOST INSIDIOUS FORM OF PROTECTIONISM WE HAVE ALREADY GLIMPSED THAT STRATEGY AT WORK BEHIND THE NUANCED UTTERANCES AND VEILED THREATS ISSUED BY TREASURY SECRETARY LLOYD BENTSEN OVER THE PAST YEAR AIMED AT REDUCING THE VALUE OF THE DOLLAR AGAINST THE JAPANESE YEN JUST THREE WEEKS AGO NO DOUBT WITH THE SCHEDULED FEB 11 MEETING BETWEEN PRESIDENT BILL CLINTON AND JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA IN MIND MR BENTSEN ISSUED THIS PURPOSEFUL WARNING TO TOKYO ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE WAY OUT OF RECESSION FOR JAPAN LOOK WHO'S TALKING MR BENTSEN HAS BEEN THE DRIVING FORCE BEHIND THE US EFFORT TO MANIPULATE THE DOLLARYEN EXCHANGE RATE SO THAT JAPANESE GOODS ARE RENDERED MORE EXPENSIVE FOR AMERICAN CONSUMERS AND US PRODUCTS ARE MADE LESS EXPENSIVE FOR JAPANESE CONSUMERS IT WAS SCARCELY MORE THAN A YEAR AGO THAT IT TOOK 124 YEN TO PURCHASE ONE DOLLAR IN DECEMBER 1992 NEWLY ELECTED PRESIDENT CLINTON AT HIS HIGHPROFILE ECONOMIC CONFERENCE IN LITTLE ROCK ARK DECLARED I'M FOR A STRONG DOLLAR WELL YOU CAN HARDLY EXPECT AN INCOMING US COMMANDER IN CHIEF TO GO ON RECORD AS FAVORING A WEAK DOLLAR BUT JUST TWO MONTHS LATER MR BENTSEN MADE THE WHITE HOUSE'S PREFERENCES QUITE CLEAR SPEAKING BEFORE REPORTERS AT THE NATIONAL PRESS CLUB HE SAID I'D LIKE TO SEE A STRONGER YEN CURRENCY TRADERS DO NOT REQUIRE MUCH PRODDING THEY ACTED QUICKLY ON THIS LESSTHANSUBTLE HINT THAT WASHINGTON WANTED TO SEE THE VALUE OF THE DOLLAR SLIDE AGAINST THE YEN CONFIDENT THAT THE US GOVERNMENT WOULD NOT INTERVENE CURRENCY SPECULATORS SOLD DOLLARS AND BOUGHT YEN PUSHING UP THE VALUE OF THE YEN TO RECORD LEVELS AGAINST THE DOLLAR BY APRIL JAPANESE OFFICIALS WERE BECOMING ALARMED THE YEN WAS APPROACHING AN EXCHANGE RATE OF 113 TO THE DOLLAR WHICH AMOUNTED TO A 9 PRICE RISE ON JAPANESE GOODS SOLD IN THE US THE WHITE HOUSE MIGHT JUST AS WELL HAVE SLAPPED ON AN EXPLICIT TARIFF HOWEVER WHEN JAPAN'S THENPRIME MINISTER KIICHI MIYAZAWA PERSONALLY CONFRONTED MR CLINTON WITH THE HIGHYEN PROBLEM STEMMING FROM MR BENTSEN'S INJUDICIOUS REMARKS THE COMPLAINT WAS REBUFFED INSTEAD OF CONDEMNING THE PRACTICE OF TALKING DOWN THE DOLLAR MR CLINTON PUBLICLY CONDONED IT INDEED HE CITED THE HIGH YEN AS NO 1 ON A LIST OF THE THINGS WORKING TODAY WHICH MAY GIVE US MORE RESULTS IN SHRINKING THE HUGE US TRADE DEFICIT WITH JAPAN WITHIN TWO DAYS AFTER THE MEETING WITH MR MIYAZAWA THE YEN HIT A POSTWAR HIGH OF 110 TO THE DOLLAR MR CLINTON WAS ROUNDLY CHASTISED BY THE BANK OF JAPAN FOR MAKING WHAT IT CONSIDERED HIGHLY INAPPROPRIATE COMMENTS THERE ARE SOME DANGEROUS SIGNS THAT THERE IS TOO MUCH TOYING AROUND WITH EXCHANGE RATES EXPLAINED A SENIOR BANK OFFICIAL JAPAN'S TRADE MINISTER ASSERTED THAT HE FELT EXTREMELY ANGRY AT THE WAY THE CLINTON ADMINISTRATION HAD TALKED UP THE YEN BUT THE DAMAGE WAS DONE CONSTRUING THE COMMENTS OF THE US PRESIDENT AS A MARKET DIRECTIVE CURRENCY TRADERS FURIOUSLY SOLD DOLLARS FOR YEN IN INTERNATIONAL MARKETS AND REFUSED TO CHANGE COURSE EVEN WHEN THE US FEDERAL RESERVE STEPPED IN TO ATTEMPT TO HALT THE DOLLAR SLIDE IN LATE MAY TREASURY UNDERSECRETARY LAWRENCE SUMMERS WHO HAD BEEN A PROPONENT OF THE STRONG YEN STRATEGY WAS FORCED TO CONCEDE THE MARKET HAS MOVED TOO FAR TOO FAST EVEN MR BENTSEN FELT COMPELLED TO INSIST THAT THE US DIDN'T WANT THE DOLLAR TO FALL ANY FURTHER STILL THE DOLLAR WOULD WEAKEN TO THE SHOCKINGLY LOW VALUE OF JUST OVER 100 YEN TO THE DOLLAR IN AUGUST AN 18 DROP FROM SEVEN MONTHS EARLIER SINCE THEN IT HAS REGAINED ABOUT HALF THE LOSS CURRENTLY TRADING AT ABOUT 112 YEN FOR ALL THE JAPANESE COMPANIES THAT BASED THEIR PLANNING ON AN EXCHANGE RATE OF 115 TO 117 YEN TO THE DOLLAR HOWEVER THAT IS LITTLE COMFORT JAPAN'S INDUSTRY ANALYSTS CALCULATE THAT AT 110 YEN TO THE DOLLAR BARELY ONE IN 50 OF THE NATION'S EXPORTERS ARE PROFITABLE MOREOVER LEST TOKYO GROWS HOPEFUL AT THE PROSPECT THAT A STRENGTHENING DOLLAR MIGHT ENABLE ITS EXPORTING COMPANIES TO BECOME PROFITABLE ONCE AGAIN MR BENTSEN FIRED A SHOT ACROSS JAPAN'S BOW WITH HIS STERN LECTURE ABOUT MANIPULATING THE YEN'S VALUE IN EXCHANGE MARKETS THE PROBLEM IS JAPAN'S SHIP HAS ALREADY STARTED TO SINK WITH THE STAGGERING DEFEAT LAST FRIDAY OF MR HOSOKAWA'S PLAN TO CARRY OUT ELECTORAL REFORM JAPAN'S COALITION GOVERNMENT HAS BEEN PLUNGED INTO POLITICAL CHAOS MR HOSOKAWA MAY BE FORCED TO RESIGN PERPETUATING THE LACK OF LEADERSHIP THAT HAS COMPOUNDED JAPAN'S INABILITY TO DEAL WITH ITS PRESSING ECONOMIC PROBLEMS PLAGUED BY RECESSION FOR MORE THAN THREE YEARS THE WORLD'S SECONDRICHEST COUNTRY IS SERIOUSLY HURTING STAGNANT GROWTH IS TAKING ITS TOLL ON BOTH THE JAPANESE PSYCHE AND POCKETBOOK AS COMPANIES STRUGGLE TO RESPOND TO THE SLUMP BY CUTTING WORKERS JAPAN'S BANKS ARE WEIGHTED DOWN WITH BAD LOANS AND SMALLER JAPANESE FIRMS ARE INCREASINGLY DECLARING BANKRUPTCY SOME OF THE BUSINESS CASUALTIES ARE DIRECTLY ATTRIBUTABLE TO THE YEN'S APPRECIATION AGAINST THE DOLLAR JAPANESE CONSUMERS ARE DISPLAYING A GLOOMY RELUCTANCE TO PURCHASE DOMESTICALLY PRODUCED GOODS LET ALONE AMERICAN IMPORTS MEANWHILE THE STOCK MARKET IN TOKYO DROPPED AN ASTOUNDING 49 ON MONDAY IN RESPONSE TO THE LATEST POLITICAL DEBACLE BUT MR BENTSEN HASN'T BEEN DETERRED FROM ENGAGING IN DARK INNUENDO ABOUT THE CONSEQUENCES FOR JAPAN IF IT FAILS TO REACH CREDIBLE AGREEMENTS WITH THE US IN TIME FOR NEXT MONTH'S SUMMIT HIS LATEST TOUGH REMARKS COMING TWO DAYS AFTER THE HOSOKAWA GOVERNMENT WAS DEVASTATED BY THE POLITICAL REFORM CRISIS SUGGEST A HIT'EMWHILETHEY'REDOWN APPROACH TO GAINING TRADE CONCESSIONS AND SMACKS OF GLOBAL ECONOMIC BULLYING ALL OF WHICH BRINGS TO MIND THE RESPONSE OF SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY LAST SPRING TO THE ASSERTION BY DEPUTY US TRADE REPRESENTATIVE CHARLENE BARSHEFSKY THAT JAPAN SIMPLY MUST REDUCE ITS TRADE SURPLUS MUST ASKED SEN MOYNIHAN EXASPERATED WHAT WILL YOU DO IF IT DOESN'T BOMB TOKYO ECONOMICS IS NOT WAR MANIPULATING CURRENCIES CAN LEAD TO WAR HOWEVER WITNESS THE DEVASTATING SYNDROME OF COMPETITIVE DEVALUATIONS IN THE 1930S AS NATIONS SOUGHT TO UNDERCUT EACH OTHER'S ABILITY TO SELL PRODUCTS IN WORLD MARKETS INSTEAD OF BOOSTING GLOBAL DEMAND AND EMPLOYMENT LEVELS THE EXERCISE RESULTED IN A DOWNWARD SPIRAL OF INCREASINGLY ISOLATIONIST ECONOMIC POLICIES THAT IN TURN FOSTERED GREATER POLITICAL TENSIONS THE COMBINATION OF GLOBAL STAGNATION AND MONETARY NATIONALISM SET THE STAGE FOR WORLD WAR II MR CLINTON NEEDS TO MUZZLE HIS TREASURY SECRETARY AND THINK THROUGH HIS OWN CONCEPTUAL FRAMEWORK ABOUT THE RELATIONSHIP BETWEEN STABLE CURRENCY VALUES AND INTERNATIONAL COMMERCE ALL THE FREETRADE AGREEMENTS IN THE WORLD CAN'T COMPENSATE FOR THE DAMAGE INFLICTED BY FINANCE MINISTERS AND EVEN CHIEF EXECUTIVES WHO FIND IT EASIER TO FIDDLE WITH EXCHANGE RATES THAN TO TAKE CONCRETE MEASURES TO IMPROVE THEIR NATIONS' PERFORMANCE IN THE GLOBAL ECONOMY MS SHELTON A RESEARCH FELLOW AT THE HOOVER INSTITUTION IS AUTHOR OF THE FORTHCOMING MONEY MELTDOWN FREE PRESS 9401280063 940128 BUSINESS BRIEF GENERAL MOTORS CORP WORLDWIDE SHIPMENTS ROSE BY 58 TO 139435 IN 1993 GENERAL MOTORS CORP DETROIT SAID ITS WORLDWIDE SHIPMENTS OF NORTH AMERICANPRODUCED VEHICLES REACHED 139435 IN 1993 UP 58 FROM 1992 SHIPMENTS OF FULLY ASSEMBLED VEHICLES TOTALED 116515 COMPARED WITH 113790 IN 1992 EXPORTS OF PARTIALLY ASSEMBLED VEHICLES EQUALED 22920 COMPARED WITH 17991 A YEAR EARLIER OUR SALES PICTURE IS STRONG DESPITE WEAKENED ECONOMICS IN MANY PARTS OF THE WORLD SAID RICHARD M LEE EXECUTIVEINCHARGE OF GM NORTH AMERICAN EXPORTS SALES IN SPITE OF RECESSIONARY CONDITIONS CONTRIBUTING TO AN OVERALL INDUSTRY DECLINE IN EUROPE GM SAID ITS NORTH AMERICAN EXPORT SALES HAVE CONTINUED TO INCREASE WITH THE PONTIAC TRANS SPORT AS THE TOP SELLER IN THE MIDDLE EAST TRADITIONALLY GM'S LARGEST EXPORT MARKET SHIPMENTS TOTALED 50840 COMPARED WITH 50468 A YEAR EARLIER 9401280062 940128 ABREAST OF THE MARKET ISSUES RALLY TO A RECORD AS FEARS ABOUT RISING INTEREST RATES EASE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS RALLIED TO A RECORD AS INVESTORS' FEARS ABOUT RISING INTEREST RATES CONTINUED TO EASE BOND PRICES JUMPED FOR A SECOND STRAIGHT DAY AND UTILITIES POSTED THEIR BIGGEST GAIN IN THREE YEARS THAT COMBINED WITH SOLID GOVERNMENT REPORTS ON DURABLE GOODS ORDERS AND JOBLESS CLAIMS SENT INVESTORS SCURRYING INTO A BROAD RANGE OF STOCKS THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1830 OR 047 TO 392630 TOPPING A RECORD THAT WAS SET LAST FRIDAY BROADBASED INDEXES ALSO JUMPED TO NEW HIGHS WHILE ADVANCING ISSUES LED DECLINERS 1329 TO 784 ON THE NEW YORK STOCK EXCHANGE BIG BOARD VOLUME SWELLED TO ABOUT 3463 MILLION SHARES UP FROM 3046 MILLION SHARES WEDNESDAY AND SET THE HIGHEST ONEDAY TALLY SINCE 3634 MILLION SHARES TRADED JAN 6 THE DOW JONES UTILITIES AVERAGE ROCKETED 415 OR 187 TO 22561 ITS LARGEST GAIN SINCE JAN 17 1991 WHEN IT ADVANCED THAT SAME AMOUNT IT HASN'T JUMPED MORE THAN THAT SINCE 1984 THE RALLY YESTERDAY HELPED ALLAY CONCERNS ABOUT RECENT LOSSES IN THAT AVERAGE WHICH MANY PEOPLE VIEW AS A LEADING INDICATOR FOR STOCKS AND BONDS THE 30YEAR TREASURY BOND MEANWHILE RALLIED 5/8 POINT PUSHING ITS YIELD DOWN TO 626 THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 385 OR 081 TO 47705 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 212 OR 081 TO 26438BOTH SETTING RECORDS THE NASDAQ COMPOSITE INDEX ADVANCED 408 OR 052 TO 79288 WHILE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED JUST 012 OR 002 TO 48186 BOTH ARE WELL WITHIN 1 OF THEIR ALLTIME HIGHS THE DOW JONES INDUSTRIALS WOULD HAVE LEAPT EVEN FURTHER IF NOT FOR A STEEP SELLOFF IN SHARES OF MINNESOTA MINING & MANUFACTURING THAT STOCK TUMBLED 3 3/4 TO 107 1/4 AND SLICED MORE THAN NINE POINTS OFF THE DOW THE COMPANY IN ST PAUL MINN REPORTED FOURTHQUARTER EARNINGS OF 133 A SHARE UP FROM 132 A SHARE A YEAR EARLIER BUT SHORT OF THE 136 MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SALOMON RALLIED 2 1/4 TO 48 1/4 AFTER THE NEW YORK SECURITIES FIRM SAID ITS FOURTHQUARTER EARNINGS SURGED TO 433 A SHARE FROM 110 A SHARE A YEAR AGO THE COMPANY POSTED A HUGE PROFIT FROM ITS PROPRIETARY TRADING OPERATIONS SARA LEE LOST 1 1/2 TO 23 1/2 EVEN THOUGH THE CHICAGO FOOD CONCERN HAD A PROFIT OF 48 CENTS A SHARE IN THE SECOND QUARTER ENDED JAN 1 UP FROM 44 CENTS A SHARE A YEAR EARLIER AND IN LINE WITH ANALYSTS' EXPECTATIONS US SURGICAL INCREASED 2 TO 29 3/4 A MOVE SOME ANALYSTS TIED TO SPECULATION THE NORWALK CONN MEDICALPRODUCTS COMPANY WILL WIN A PATENT INFRINGEMENT LAWSUIT AGAINST JOHNSON & JOHNSON SHARES OF THE COMPANY IN NEW BRUNSWICK NJ ADDED 1/2 TO 42 3/8 AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO JUMPED 2 1/2 TO 71 3/8 THE STOCK HAD LOST GROUND EARLIER IN THE WEEK ON CONCERNS THAT IT COULD FACE COMPETITION IN COMING YEARS AFTER THE MEXICAN LONGDISTANCE TELEPHONE MARKET IS OPENED TO POTENTIAL RIVALS COMPANIA DE TELEFONOS DE CHILE'S ADRS GAINED 3 1/4 TO 118 1/2 MORGAN STANLEY MADE POSITIVE COMMENTS ABOUT THE STOCK IN PART SAYING IT EXPECTS THE CHILEAN CONGRESS TO GIVE THE COMPANY PERMISSION TO EXPAND ITS OPERATIONS HEALTHSOURCE JUMPED 2 7/8 TO 57 3/8 THE HEALTHMAINTENANCE ORGANIZATION MANAGER IN CONCORD NH DECLARED A 2FOR1 STOCK SPLIT PAYABLE MARCH 14 TO HOLDERS OF RECORD FEB 14 AN OFFERING OF 15 MILLION AMERICAN DEPOSITARY SHARES OF DAIMLERBENZ AG WAS PRICED AT 4675 EACH THROUGH UNDERWRITERS LED BY CJ LAWRENCE/DEUTSCHE BANK MERRILL LYNCH AND GOLDMAN SACHS THE SHARES WERE SOLD BY DEUTSCHE BANK WHICH ANNOUNCED IN SEPTEMBER THAT IT PLANNED TO SELL ROUGHLY 3 OF DAIMLER'S SHARE CAPITAL AFTER THE OCT 5 LISTING OF DAIMLER SHARES DIAL INCREASED 1 1/2 TO 43 AFTER THE PERSONALCARE PRODUCTS COMPANY IN PHOENIX REPORTED A FOURTHQUARTER PROFIT OF 67 CENTS A SHARE A YEARAGO IT HAD INCOME FROM CONTINUING OPERATIONS OF AROUND 50 CENTS COCACOLA EDGED UP 3/4 TO 41 3/4 THE SOFTDRINK MAKER IN ATLANTA REPORTED THAT FOURTHQUARTER EARNINGS JUMPED TO 36 CENTS A SHARE FROM 30 CENTS A SHARE A YEAR AGO MCDONALD'S GAINED 5/8 TO 60 FOURTHQUARTER EARNINGS AT THE FASTFOOD RESTAURANT COMPANY WERE 72 CENTS A SHARE UP FROM 61 CENTS A SHARE A YEAR EARLIER MCDONALD'S SALES SURGED OVER 7 TO 615 BILLION IN THE QUARTER INGERSOLLRAND THE MACHINERY SUPPLIER IN WOODCLIFF LAKE NJ ROSE 2 1/4 TO 39 1/2 ON UPBEAT EARNINGS NET INCOME WAS 65 CENTS A SHARE IN THE FOURTH QUARTER UP FROM 31 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY RECORDED A 70 MILLION RESTRUCTURING CHARGE ANALYSTS HAD BEEN PROJECTING INGERSOLLRAND'S EARNINGS AT 59 CENTS A SHARE THE MARKET RIGHT NOW SEEMS TO BE RUNNING ON ALL CYLINDERS WE ARE SEEING REMARKABLE RESILIENCY EVEN AT THESE HIGH LEVELS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH PRICES FELL MONDAY AND TUESDAY ON FEARS THAT STOCKS HAD RUN TOO FAR TOO FAST IN THE FIRST SEVERAL WEEKS OF THE YEAR MICHAEL METZ A MARKET STRATEGIST AT OPPENHEIMER & CO DOWNPLAYED THE SIGNIFICANCE OF THE RALLY ATTRIBUTING THE GAINS MORE TO SOCALLED MOMENTUM PLAYERS MAKING BETS ON THE SHORTTERM DIRECTION OF STOCKS RATHER THAN TO LONGTERM INVESTORS PLACING WAGERS BASED ON FUNDAMENTALS I THINK IT'S THE VERY LAST HURRAH BEFORE THE MARKET TURNS DOWN I WOULD SELL INTO STRENGTH RATHER THAN FOLLOW IT HE SAID 9401280061 940128 REVIEW & OUTLOOK EDITORIAL TWO SCANDALS CONT REMEMBER THE GREAT NEW JERSEY GOP VOTE SUPPRESSION STORY TO RECAP STATE AND FEDERAL OFFICIALS FOUND NO EVIDENCE THAT NEW JERSEY REPUBLICANS USED STREET MONEY TO SUPPRESS TURNOUT IN BLACK AREAS SUPPRESSING CHESHIRE GRINS THE GOP LEGISLATURE PASSED A LAW REQUIRING ALL FUTURE STREET MONEY TO BE PAID BY CHECK NOT CASH SOMEHOW NOT ONE DEMOCRATIC LEGISLATOR VOTED FOR THE BILL WHICH OUTGOING GOVERNOR JIM FLORIO SIGNED INTO LAW ELECTION RECORDS NOW REVEAL WHO SPENT WHAT ON STREET MONEY NEW JERSEY DEMOCRATS HIRED 20000 POLL WORKERS WITH 519000 IN UNTRACEABLE STREET MONEY OUTSPENDING REPUBLICANS BY MORE THAN 12 TIMES MEANWHILE THE VOTING FRAUD CASE IN NEXTDOOR PENNSYLVANIA ONLY GETS MEATIER DEMOCRATS THERE RETAINED CONTROL OF THE STATE SENATE BY WINNING A SQUEAKER ELECTION IN WHICH MORE THAN 80 OF ABSENTEE BALLOTS WENT FOR DEMOCRAT BILL STINSON BUT HUNDREDS OF PHILADELPHIA VOTERS NOW SAY THEY WERE MISLED INTO VOTING FOR HIM BY DEMOCRATIC WORKERS WHO WENT DOORTODOOR WITH ABSENTEE BALLOTS IN HAND NOW IT DEVELOPS THAT MR STINSON UNLOCKED VOTING MACHINES AT HIS POLLING PLACE ON ELECTION DAY AND THEN OPENED AND COUNTED SEALED ABSENTEE BALLOTS THAT NIGHT HE SAYS HE WAS ONLY HELPING HIS MOTHER WHO HAPPENS TO BE THE LOCAL ELECTION JUDGE THE CITY'S DEPUTY SOLICITOR SAYS SENATOR STINSON IS CHARGEABLE FOR VIOLATING ELECTION LAWS THE PHILADELPHIA INQUIRER THINKS ALL THIS WOULD BE ENOUGH TO PROMPT SOME TO RESIGN IN SHAME BUT THE SENATOR IS HANGING TOUGH SO FAR THERE'S BEEN NO NATIONAL MEDIA INTEREST IN THIS SCANDAL WHICH UNLIKE NEW JERSEY'S TURNED OUT TO BE REAL 9401280060 940128 WHO'S NEWS SIGOLOFF DROPS CANDIDACY FOR CALIFORNIA SCHOOL POST LOS ANGELES SANFORD C SIGOLOFF THE CORPORATE TURNAROUND SPECIALIST WHOSE NOMINATION AS CALIFORNIA SCHOOLS SUPERINTENDENT SURPRISED EDUCATION INTERESTS IN THE STATE WITHDREW AS A CANDIDATE FOR THE POST IN A LETTER TO CALIFORNIA GOV PETE WILSON YESTERDAY MR SIGOLOFF CITED PARTISAN POLITICS COMBINED WITH AN EDUCATIONAL ESTABLISHMENT RESISTANT TO CHANGE IN HIS DECISION THE WITHDRAWAL CAME SHORTLY BEFORE SCHEDULED LEGISLATIVE CONFIRMATION HEARINGS IN WHICH MR SIGOLOFF 63 YEARS OLD WAS EXPECTED TO FACE HEATED EXAMINATION FROM LEGISLATORS ABOUT HIS APPARENT LACK OF EXPERIENCE IN EDUCATION AND HIS BUSINESS BACKGROUND GOV WILSON IN ACCEPTING THE WITHDRAWAL NOMINATED MR SIGOLOFF TO A FOURYEAR TERM ON THE 11MEMBER STATE BOARD OF EDUCATION WHERE MR SIGOLOFF WILL AGAIN FACE A LEGISLATIVE CONFIRMATION PROCESS BUT LIKELY FAR LESS RESISTANCE THE BOARD SETS STATE EDUCATION POLICY AND CURRICULA MR SIGOLOFF STYLED HIMSELF AS MING THE MERCILESS FOR HIS USE OF COSTCUTTING TACTICS IN BRINGING WICKES COS AND OTHER COMPANIES THROUGH BANKRUPTCY PROCEEDINGS TEACHERS' UNIONS AND OTHER GROUPS WERE STRONGLY OPPOSED TO THE NOMINATION MR SIGOLOFF HAD SAID HE PLANNED ONLY TO FILL OUT THE REMAINING 10MONTH TERM IN THE EMPTY SCHOOLS SUPERINTENDENT POSITION 9401280059 940128 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY FACTIONS JOCKEY IN THE WHITE HOUSE FOR CLINTON'S ATTENTION WITH NO ONE IN CHARGE OF COORDINATING THE OVERALL STRATEGY EACH ISSUE HAS ITS OWN CHAMPION BATTLING FOR TIME AMONG THE TOP AIDES STEPHANOPOULOS FOCUSES ON HEALTH GERGEN TAKES ON CRIME AND TO A RISING DEGREE WELFARE ENDLESS MEETINGS ARE UNDER WAY TO PARSE THE BEST SEQUENCING AND PRESIDENTIAL TIME ALLOCATION HEALTHCARE PEOPLE EXPECT THE PRESIDENT TO DO ONE OR TWO HEALTH EVENTS EACH WEEK THROUGH MARCH MRS CLINTON ALSO WILL TRAVEL WIDELY TO STUMP FOR THE PLAN BUT THE PRESIDENT ALSO SHOWS A RISING INTEREST IN CRIME AS A POLITICAL ISSUE AND WITH THE ADDITIONAL NEED TO FASHION A WELFARE PROPOSAL STARTING NEXT MONTH EXPECT OTHER ISSUES MOST NOTABLY GORE'S REINVENTINGGOVERNMENT INITIATIVE TO FALL FROM VIEW THE WHITE HOUSE ALSO WILL TREAD LIGHTLY ON FOREIGN AFFAIRS DUE IN PART TO THE DISARRAY IN THE FOREIGNPOLICY TEAM CLINTON'S AGENDA POSES LOGISTICAL PROBLEMS FOR FINANCE AND TAX COMMITTEES AFTER PRESSURING CLINTON TO MOVE FASTER ON WELFARE SENATE FINANCE CHAIRMAN MOYNIHAN SCHEDULES HEALTH HEARINGS THAT COULD RUN INTO LATE APRIL DESPITE CLINTON'S PROMISE OF A WELFARE PROPOSAL THIS SPRING MOYNIHAN IS HUGELY SKEPTICAL THE ADMINISTRATION IS GOING TO SEND HIM A BILL SAYS GOP SEN WALLOP MOYNIHAN HIMSELF PRIVATELY REMINDS MEMBERS OF GORE'S REMARK THAT SPRING TECHNICALLY RUNS TO MIDJUNE MEANWHILE WITH HEALTH CARE FIRST PRIORITY FOR THE HOUSE LEADERSHIP THE WHITE HOUSE CONSIDERS PUSHING PORTIONS OF THE WELFARE BILL THROUGH THE PANELS THAT ACT EARLY ON HEALTH PARTICULARLY THE HOUSE LABOR COMMITTEE SUPPLYSIDERS SCRAMBLE TO EXPLAIN AWAY THE ECONOMY'S STRENGTH PREDICTIONS THAT CLINTON'S TAX INCREASES WOULD STRANGLE THE RECOVERY IN ITS CRADLE SEEM UNFOUNDED MAINSTREAM ECONOMISTS ISSUE INCREASINGLY OPTIMISTIC FORECASTS BUT SUPPLYSIDERS INSIST CLINTON HAS JUST BEEN LUCKY SO FAR AND THAT DOOM IS JUST AROUND THE CORNER PERHAPS AS SOON AS LATER THIS YEAR CLINTON'S TAX INCREASE IS A CORROSIVE LONGERTERM EFFECT ON INVESTMENT AND PRODUCTION SAYS FORMER REAGAN ECONOMIST LAWRENCE KUDLOW WE WILL SEE OVER TIME A WET BLANKET OVER THE SUPPLY SIDE OF THE ECONOMY THE HUDSON INSTITUTE'S ALAN REYNOLDS SAYS DECLINES IN LONGTERM INTEREST RATES ARE BUOYING THE ECONOMY BUT HE CREDITS WEAK ECONOMIES ABROAD NOT CLINTON'S DEFICITREDUCTION EFFORT SUPPLYSIDE PROSELYTIZER JUDE WANNISKI HAS A NEW VILLAIN IF CLINTON'S TAX INCREASES DON'T CHOKE OFF GROWTH HE SAYS THE HEALTH PLAN WILL AT THE FED WHERE EVEN OFFHAND COMMENTS CAN MOVE MARKETS SOME OFFICIALS ARE EDGY BECAUSE LIKELY NOMINEE GEORGE PERRY'S WIFE DINA IS A PORTFOLIO MANAGER FOR THREE STOCK MUTUAL FUNDS EVEN SOME IN THE ADMINISTRATION ARE CONCERNED BUT THE WHITE HOUSE CONCLUDES THERE ARE NO LEGAL PROBLEMS AND PENDING AN INTERVIEW WITH CLINTON HIMSELF THE NOMINATION IS STILL ON TRACK NO CURRENT FED GOVERNOR HAS A WORKING SPOUSE CLINTON TRIES TO SOUND TIGHTFISTED WHILE ALSO TOUTING INCREASES FOR HIS INVESTMENTS AS BUDGET DAY NEARS LABOR SECRETARY REICH SAYS THE FEB 7 BUDGET WILL PROPOSE SPENDING CUTS TO FINANCE CLINTON'S REEMPLOYMENT TRAINING AND JOBSEARCH INITIATIVE WHEN FULLY PHASED IN IT WILL COST ABOUT 3 BILLION A YEAR ANOTHER BIG WINNER AID TO INNERCITY SCHOOLS SUPERFUND SNAG THE JUSTICE DEPARTMENT RAISES CONSTITUTIONAL OBJECTIONS TO CLEANUPARBITRATION PROVISIONS IN THE ADMINISTRATION'S REWRITE OF THE 1980 TOXICWASTE LAW BUT THE ADMINISTRATION STILL EXPECTS TO FINISH THE PROPOSAL WITHIN TWO WEEKS AND FOR FINETUNING CONSULTS WITH GE ARCO AND THE AMERICAN INSURANCE ASSOCIATION CHINA HAND LOOK FOR DEFENSE SECRETARYDESIGNATE PERRY TO TAKE A BIGGER ROLE IN CHINA POLICY ONE POSSIBILITY A SINOAMERICAN COMMISSION ON DEFENSE CONVERSION THAT WOULD LEARN FROM THE CHINESE EXPERIENCE APPLY IT TO OTHER NATIONS AND GET A BETTER HANDLE ON THE INNER WORKINGS OF THE SEMIAUTONOMOUS CHINESE ARMS INDUSTRY REPUBLICANS FLINCH FROM A FIGHT OVER FINANCING EARTHQUAKE AID THOUGH SOME CONSERVATIVES WANT THE ADMINISTRATION TO COME UP WITH OFFSETTING BUDGET CUTS MOST REPUBLICANS DECIDE IT ISN'T WORTH THE POLITICAL TROUBLE TO FIGHT FOR THEM HOUSE GOP LEADER BOB MICHEL HASN'T ENDORSED OFFSETTING CUTS AND SENATE REPUBLICANS HAVEN'T RALLIED BEHIND DOLE'S INITIAL NOISES IN THAT DIRECTION FINDING CUTS TO OFFSET 7 BILLION IN EARTHQUAKE AID WITH JUST EIGHT MONTHS LEFT IN THE FISCAL YEAR WOULD BE A PAINFUL PROCESS BEYOND THAT WITH A SHAKY GOV WILSON SEEKING REELECTION AND REP HUFFINGTON CHALLENGING SEN FEINSTEIN REPUBLICANS CAN'T AFFORD TO BE SEEN AS AN OBSTACLE TO RELIEF ONE OBJECT LESSON IOWA GOP REP NUSSLE WHO PUSHED FOR CUTS TO OFFSET MIDWEST FLOOD AID NOW APPEARS TO BE IN DEEP POLITICAL TROUBLE BACK HOME MINOR MEMOS BUT SERIOUSLY FOLKS THE PENTAGON ANNOUNCES A NEW LINE OF SHIPS THE BOB HOPE CLASS LINE OF MEDIUMSPEED NAVY CARGO VESSELS I'VE BEEN DISAPPOINTED IN THE NUMBER OF DISASTERS OVER THE LAST FEW YEARS FRANKLY WHITE HOUSE BUDGET DIRECTOR PANETTA SAYS RUMORS OF A PENDING BENTSEN SPEECH ON THE YEN SEND CURRENCY TRADERS INTO A FRENZY BUT THE SPEAKER TURNS OUT TO BE FRED BERGSTEN OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS 9401280058 940128 BUSINESS BRIEF SMITH INTERNATIONAL INC FIRM TO BUY STAKE IN MI FROM DRESSER INDUSTRIES INC SMITH INTERNATIONAL INC SAID IT AGREED IN PRINCIPLE TO BUY DRESSER INDUSTRIES INC'S INTEREST IN A DRILLING FLUIDS COMPANY FOR 160 MILLION SMITH SAID IN HOUSTON THAT THE AGREEMENT CALLS FOR IT TO ACQUIRE DRESSER'S 64 INTEREST IN MI DRILLING FLUIDS CO THE REMAINING 36 OF MI IS OWNED BY HALLIBURTON CO SMITH SAID THAT FOR THE FISCAL YEAR ENDED OCT 31 THE DRILLING FLUIDS COMPANY GENERATED REVENUE OF 3984 MILLION THE ACQUISITION WILL BE FINANCED FROM CASH AND BORROWINGS THE TRANSACTION IS EXPECTED TO CLOSE ON FEB 28 ITS COMPLETION IS SUBJECT TO NEGOTIATION OF A DEFINITIVE AGREEMENT TO APPROVAL OF SMITH'S AND DRESSER'S BOARDS AND TO CERTAIN FEDERAL REGULATORY APPROVALS 9401280057 940128 WHAT'S NEWS BUSINESS AND FINANCE STOCK MUTUAL FUNDS PULLED IN A RECORD 145 BILLION FROM INVESTORS IN DECEMBER AND FUND EXECUTIVES SAY JANUARY'S INFLOWS MAY SOAR EVEN HIGHER STOCK FUNDS ATTRACTED A RECORD 128 BILLION IN 1993 FAR ABOVE THE PRIOR HIGH OF 78 BILLION AND AT YEAR END ASSETS OF ALL MUTUAL FUNDS INCLUDING STOCK BOND AND MONEYMARKET FUNDS TOPPED 2 TRILLION FOR THE FIRST TIME MCDONNELL DOUGLAS WON A 2 BILLION CONTRACT TO SELL 20 OF ITS F15 JETS TO ISRAEL BEATING OUT ITS RIVAL LOCKHEED ORDERS FOR DURABLE GOODS ROSE 86 IN 1993 THEIR STRONGEST INCREASE IN FIVE YEARS IN DECEMBER DURABLEGOODS ORDERS GREW 22 ECONOMISTS WERE PARTICULARLY ENCOURAGED THAT DESPITE CONTINUAL CUTBACKS IN DEFENSE SPENDING OVERALL ORDERS WERE STILL STRONG THE WHITE HOUSE IS SEEKING TO KILL THE TARGETED JOBS TAX CREDIT A ROUGHLY 273 MILLION ANNUAL TAX BREAK USED LARGELY BY THE RETAILING AND HOTEL INDUSTRIES IT ALSO IS CONSIDERING REPLACING THE FEDERAL EMERGENCY JOBLESS BENEFITS PROGRAM WITH A PLAN THAT WOULD REQUIRE A SUBSTANTIAL STATE ROLE AT&T POSTED A 2 DECLINE IN FOURTHQUARTER PROFIT DUE TO ONETIME CHARGES BUT ACROSSTHEBOARD GROWTH GENERATED STRONG REVENUE ITS NCR COMPUTER UNIT REBOUNDED IN THE QUARTER WITH A 21 GAIN IN EQUIPMENT SALES MCI COMMUNICATIONS REPORTED A 33 DECLINE IN FOURTHQUARTER PROFIT HURT BY A RESTRUCTURING CHARGE SARA LEE POSTED DISAPPOINTING FISCAL SECONDQUARTER RESULTS AND EXPECTS FLAT EARNINGS FOR THE CURRENT QUARTER APPLE SAID FOR THE FIRST TIME THAT IT WANTS OTHER MANUFACTURERS TO BUILD PCS THAT RUN ITS MACINTOSH SOFTWARE INTEL PROMISED TO SHIP ITS NEXTGENERATION MICROCHIP IN 1995 AND SAID IT WILL BOOST SPENDING ON NEW FACTORY CAPACITY THIS YEAR BY 26 TO 24 BILLION UAL SAID ITS FOURTHQUARTER LOSS NARROWED SUBSTANTIALLY AND THAT ITS TWO BIGGEST UNIONS APPROVED A PLAN FOR EMPLOYEES TO BUY A MAJORITY STAKE DELTA AIR'S LOSS NARROWED FOR THE LATEST QUARTER AND AMERICA WEST HAD A PROFIT COMPARED WITH A YEARAGO LOSS RH MACY IS DISMISSING AT LEAST 415 EXECUTIVES AND STAFF EMPLOYEES AT ITS MACY'S WEST DIVISION TO CUT COSTS PRUDENTIAL SECURITIES SET ASIDE MORE THAN 430 MILLION IN RESERVES IN 1993 FOR LIMITEDPARTNERSHIP LEGAL CLAIMS NEARLY FOUR TIMES WHAT THE BIG BROKERAGE FIRM PREDICTED A YEAR AGO THE CONGRESSIONAL BUDGET OFFICE SHARPLY CUT ITS ESTIMATE OF THE FEDERAL BUDGET DEFICIT TO 171 BILLION IN 1995 P&G POSTED A 13 PROFIT GAIN FOR ITS SECOND QUARTER DESPITE LOWER SALES AND TROUBLE AT ITS DIAPER AND FOOD UNITS COCACOLA'S FOURTHQUARTER PROFIT INCREASED 19 BOLSTERED BY SOLID VOLUME GROWTH IN OVERSEAS MARKETS FEDERATED IS EXPECTED TO NAME HAROLD KAHN A FORMER TOP MACY EXECUTIVE HEAD OF ITS LARGEST DIVISION STOCK PRICES HIT RECORDS AS INTEREST RATES FELL THE DOW JONES INDUSTRIALS GAINED 1830 TO 392630 THE TREASURY'S BENCHMARK 30YEAR ISSUE ADDED 5/8 POINT AND ITS YIELD FELL TO 626 BONDS LEHMAN BROTHERS TREASURY INDEX 562677 UP 3022 COMMODITIES OIL 1542 A BARREL OFF 5 CENTS DOW JONES FUTURES INDEX 14151 OFF 048 SPOT INDEX 12971 UP 020 DOLLAR 10855 YEN OFF 150 17295 MARKS OFF 00155 9401280056 940128 BUSINESS BRIEF CARDINAL DISTRIBUTION INC ACQUISITION OF WHITMIRE IS APPROVED BY ALL HOLDERS CARDINAL DISTRIBUTION INC DUBLIN OHIO SAID ITS SHAREHOLDERS AND THOSE OF WHITMIRE DISTRIBUTION CORP APPROVED CARDINAL'S ACQUISITION OF WHITMIRE THE COMBINED COMPANY WILL BE THE NATION'S THIRD LARGEST DISTRIBUTOR OF PHARMACEUTICAL PRODUCTS WITH ESTIMATED 1994 SALES OF ABOUT 6 BILLION CLOSELY HELD WHITMIRE OF FOLSOM CALIF IS OWNED BY MANAGEMENT APOLLO INVESTMENT FUND LP AND CHEMICAL VENTURE PARTNERS A UNIT OF CHEMICAL BANKING CORP CARDINAL SAID ITS HOLDERS ALSO APPROVED A NAME CHANGE TO CARDINAL HEALTH INC ISSUANCE OF CLASS B COMMON SHARES FOR THE MERGER EXPANSION OF THE BOARD TO 14 FROM 10 AND AN INCREASE TO 60 MILLION AUTHORIZED SHARES FROM 40 MILLION THREE OF THE FOUR NEW BOARD SEATS WILL BE FILLED BY WHITMIRE NOMINEES WHITMIRE'S CHAIRMAN AND CHIEF EXECUTIVE MELBURN G WHITMIRE 54 YEARS OLD WHO WILL BE VICE CHAIRMAN OF CARDINAL WHITMIRE DIRECTOR MICHAEL S GROSS 32 WHO IS A VICE PRESIDENT OF APOLLO CAPITAL MANAGEMENT INC AND MITCHELL J BLUTT MD 36 AN EXECUTIVE PARTNER OF CHEMICAL VENTURE PARTNERS THE FOURTH NEW DIRECTOR IS CARDINAL NOMINEE JOHN F FINN 46 CHAIRMAN AND CHIEF EXECUTIVE OF GARDNER INC 9401280055 940128 BUSINESS BRIEF INLAND STEEL INDUSTRIES COMPANY TO BUY INTEREST IN CASTER FACILITY FROM GE INLAND STEEL INDUSTRIES INC SAID IT REACHED AN AGREEMENT WITH GENERAL ELECTRIC CAPITAL CORP TO PURCHASE THAT COMPANY'S EQUITY INTEREST IN THE CASTER FACILITY THAT ITS INLAND STEEL CO UNIT NOW LEASES FROM THE GENERAL ELECTRIC CO UNIT THE STEEL HOLDING COMPANY SAID THE INTEREST WILL BE PURCHASED FOR 83 MILLION USING PART OF THE PROCEEDS RECEIVED FROM THE COMPANY'S COMMON STOCK OFFERING LAST MONTH THE CASTER FACILITY WHICH THE COMPANY HAS LEASED SINCE 1985 IS PART OF INLAND STEEL'S PLANT IN EAST CHICAGO IND INLAND STEEL SAID THE PURCHASE IS CONSISTENT WITH THE COMPANY'S OVERALL EFFORT TO REDUCE ITS FIXED CHARGES INLAND STEEL IS ALSO THE PARENT OF INLAND MATERIALS DISTRIBUTION GROUP INC WHICH OPERATES A STEEL SERVICE CENTER 9401280054 940128 CAPITALISM'S MARCH IN ASIA BY ARLEN SPECTER THE SENATE VOTE THIS WEEK TO LIFT THE EMBARGO ON VIETNAM RECOGNIZES THE TREMENDOUS POTENTIAL FOR TRADE WITH OUR FORMER ENEMY AND THE ENTIRE REGION AMERICANS ARE JUST BEGINNING TO AWAKEN TO THE FACT THAT TWOWAY TRADE WITH THE ASIANPACIFIC RIM ALREADY EXCEEDS OUR COMMERCE WITH THE EUROPEAN UNION OR A COMBINATION OF OUR NORTH AND SOUTH AMERICAN NEIGHBORS THIS POTENTIAL FOR INCREASED TRADE AND MORE US JOBS SPRINGS FROM THE FACT THAT CAPITALISM IS ON THE MARCH IN ASIA IF ADAM SMITH AND KARL MARX COULD VISIT BEIJING AND HANOI TODAY THEY WOULD BE SHOCKED TO SEE COUNTRIES LIKE CHINA AND COMMUNIST VIETNAM SPRINTING TOWARD CAPITALISM OFFICIALLY THEY CALL IT A SOCIALIST MARKET ECONOMY AN OXYMORON THAT MAY BE THE PRACTICAL ANSWER FOR COUNTRIES NOT WANTING TO ADMIT THEIR WISH TO ABANDON THE DISADVANTAGES OF A PLANNED ECONOMY FOR THE REWARDS OF INDIVIDUAL INITIATIVE ON THE SAME DAY IN EARLY JANUARY WHEN OUR DELEGATION OF SEVEN US SENATORS HEARD CHINA'S PREMIER LI PENG IN BEIJING EXTOL THE THEORETICAL VIRTUES OF SOCIALISM THE VICE CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS ANNOUNCED PLANS TO COPY ECONOMIC LEGISLATION FROM CAPITALIST COUNTRIES OUR DELEGATION HEARD A SIMILAR MESSAGE ON OUR VISIT TO HANOI A YOUNG OFFICIAL FROM THE VIETNAM MINISTRY OF TRADE WAS SUCCINCT IN STATING THAT THE PRIVATE SECTOR WAS MORE EFFECTIVE THAN STATE OWNERSHIP BECAUSE PEOPLE WORK HARDER FOR THEIR OWN POCKETS LOOKING TO WESTERN POLITICAL IDEOLOGY VIETNAM'S MOST POWERFUL POLITICAL FIGURE SECRETARY GENERAL MOY OF THE COMMUNIST PARTY CLAIMED THAT HIS COUNTRY SOUGHT TO FOLLOW ABRAHAM LINCOLN'S MODEL OF A GOVERNMENT OF THE PEOPLE BY THE PEOPLE AND FOR THE PEOPLE STATISTICS SHOW CHINA'S GROSS NATIONAL PRODUCT GROWING AT ABOUT 10 A YEAR LI PENG BOASTED OF A TRILLIONDOLLAR CHINESE MARKET IN URGING OUR DELEGATION TO RENEW MOSTFAVOREDNATION STATUS FOR CHINA SIMILARLY IN THAILAND INDONESIA AND VIETNAM WE HEARD OF MULTIBILLIONDOLLAR US OPPORTUNITIES IN HYDROPOWER TELECOMMUNICATIONS AIR AND RAIL TRANSPORT AUTOMOBILES AND ENVIRONMENTAL PROJECTS IN ALL THESE COUNTRIES US BUSINESSMEN URGED OUR DELEGATION TO DELINK TRADE INTERESTS FROM HUMAN RIGHTS AND EVEN THE MIA ISSUE FRANK HAWKE REPRESENTING CITIBANK'S GLOBAL FINANCE OPERATION IN ASIA NOTED THAT ABOUT HALF OF HIS COMPANY'S 2 BILLION ANNUAL PROFITS CAME FROM DEVELOPING COUNTRIES MEMBERS OF THE AMERICAN CHAMBER OF COMMERCE IN BEIJING CHIDED OUR POLICY OF LECTURING CHINA ON HUMAN RIGHTS WHEN 23000 PEOPLE WERE MURDERED ANNUALLY IN THE US AND OUR CITIES WERE VIRTUAL WAR ZONES WHEN WE OBJECTED TO CHINA'S MISSILE SALES LI PENG CHASTISED US FOR BEING THE WORLD'S NUMBER ONE BIG BROTHER IN ARMS SALES INDONESIAN OFFICIALS EXPRESSED CONCERN ABOUT THE CONTINUATION OF THEIR TRADE PRIVILEGES WHEN OUR DELEGATION RAISED THE ISSUE OF HUMAN RIGHTS IN EAST TIMOR AND LABOR CONDITIONS GENERALLY THOSE PROTESTS SUGGEST THAT OUR CONDITIONS FOR TRADE PREFERENCES ARE HAVING AN EFFECT ACCESS TO OUR MARKETS AT REDUCED TARIFF RATES IS VITAL TO BEIJING'S AND JAKARTA'S TRADE SO WE SHOULD CONTINUE OUR LEVERAGE ON HUMAN RIGHTS AND ARMS SALES WITHOUT BREAKING THE LEVER IT IS OBVIOUSLY A JUDGMENT CALL AS TO HOW HARD TO PRESS BUT THERE IS MUCH ROOM FOR IMPROVEMENT AND WE ARE HAVING SIGNIFICANT SUCCESS AS EVIDENCED BY CHINA'S RECENT CONCESSION TO ALLOW GREATER INSPECTION OF MANUFACTURING IN THEIR PRISONS REGRETTABLY A TOUGH TRADE POLICY AND SANCTIONS ALSO SEEM NECESSARY TO ENFORCE US PROPERTY RIGHTS CHINA HAS FLOODED OUR MARKETS WITH ILLEGAL TEXTILE TRANSSHIPMENTS AFTER CUTTING THEIR IMPORT QUOTAS WE HAVE FINALLY EXTRACTED COMMITMENTS FROM CHINA TO STOP THE ILLEGAL TRANSSHIPMENTS OF TEXTILES BUT THAT WILL HAVE TO BE MONITORED CLOSELY TO ENSURE COMPLIANCE RESPONDING TO LONGSTANDING US COMPLAINTS THAILAND IS FINALLY ENACTING TOUGH LEGISLATION AND ESTABLISHING A SPECIAL COURT FOR ENFORCING INTELLECTUAL PROPERTY RIGHTS SIMILARLY INDONESIA NEEDS CONTINUING PRESSURE AND MONITORING TO FULFILL EXISTING PROMISES TO RESPECT US COPYRIGHTS NOTWITHSTANDING THE PROBLEMS THE BIG PICTURE SUGGESTS ENORMOUS US OPPORTUNITIES IN THE PACIFIC RIM CHINA'S DEPUTY POWER BUREAU DIRECTOR YU FOMIN WAS OUTSPOKEN IN HIS PREFERENCE FOR US PRODUCTS OVER THOSE OF FRANCE AND OTHER COMPETITORS WITHIN THE NEXT DECADE INDONESIA WILL PROVIDE A MARKET FOR INFRASTRUCTURE DEVELOPMENT IN EXCESS OF 100 BILLION THE POTENTIAL FOR US BUSINESS DEVELOPMENT IN INDONESIA IS ILLUSTRATED BY A MULTIBILLIONDOLLAR COPPERGOLD MINE BEING DEVELOPED BY FREEPORTMCMORAN INC IN TIMIKA IN EAST INDONESIA IN THE PAST FIVE YEARS THAT TALENTED AND AMBITIOUS US COMPANY HAS DEVELOPED THE WORLD'S THIRD LARGEST COPPER MINE CREATING THOUSANDS OF NEW JOBS THERE AND IN THE US THE PROBLEMS OF BALANCING COMPETING INTERESTS IN ECONOMIC DEVELOPMENT WERE KEPT IN PERSPECTIVE WHEN WE TALKED TO THAILAND'S KING PHUMIPHON WHO TOLD US THAT HIS FAVORITE HYDRODAM PROJECT WAS DEFERRED BECAUSE OF COMMUNITY PROTESTS WE UNDERSTOOD CONSTITUENT PRESSURES ON US SENATORS BUT WE ASKED WHY THAT WOULD AFFECT A MONARCH THE KING RESPONDED THEY'D DEMONSTRATE MR SPECTER A REPUBLICAN IS THE SENIOR SENATOR FROM PENNSYLVANIA 9401280053 940103 MANAGER'S JOURNAL A REVOLUTION ONLY MARKETS COULD LOVE BY MICHAEL C JENSEN WE MEET IN THE MIDST OF A NATION BROUGHT TO THE VERGE OF MORAL POLITICAL AND MATERIAL RUIN THE FRUITS OF THE TOIL OF MILLIONS ARE BOLDLY STOLEN TO BUILD UP COLOSSAL FORTUNES FOR THE FEW UNPRECEDENTED IN THE HISTORY OF MANKIND AND THE POSSESSORS OF THESE IN TURN DESPISE THE REPUBLIC AND ENDANGER LIBERTY FROM THE SAME PROLIFIC WOMB OF GOVERNMENT INJUSTICE ARE BRED TWO GREAT CLASSES OF TRAMPS AND MILLIONAIRES THIS QUOTE COULD HAVE BEEN LIFTED FROM YET ANOTHER TELEVISION DRAMA DISPARAGING THE BOOM YEARS OF THE 1980S IN FACT IT COMES FROM THE POPULIST PARTY PLATFORM ADOPTED AT THE PARTY'S FIRST CONVENTION IN OMAHA NEB ON JULY 4 1892 JUST AS THE TAKEOVER SPECIALISTS OF THE 1980S HAVE BEEN CONDEMNED BY MANAGERS POLICY MAKERS AND THE PRESS THE SOCALLED ROBBER BARONS OF THE 19TH CENTURY WERE SIMILARLY VILIFIED BUT LIKE THEIR POPULIST PREDECESSORS THE ANTIGREED PUNDITS OF THE 1990S HAVE MISSED A FAR LARGER PHENOMENON WE ARE TODAY IN THE MIDST OF A THIRD INDUSTRIAL REVOLUTION COMPARABLE IN SCOPE TO THE PREVIOUS TWO THE FIRST HAVING OCCURRED IN ENGLAND FROM THE LATE 18TH THROUGH THE EARLY 19TH CENTURIES AND THE SECOND TAKING PLACE PRIMARILY IN THE US FROM THE MID TO THE LATE 19TH CENTURY REVOLUTIONS SUCH AS THESE LEAD TO STEADILY RISING PRODUCTIVITY DRAMATIC REDUCTIONS IN LABOR COSTS AND SIGNIFICANT INCREASES IN LIVING STANDARDS MANY INDUSTRIES EXPERIENCE SUBSTANTIAL EXCESS CAPACITY AS FUNDAMENTAL TECHNOLOGICAL POLITICAL REGULATORY AND ECONOMIC FORCES RADICALLY CHANGE THE GLOBAL COMPETITIVE ENVIRONMENT THE MERGER BOOMS OF THE 1890S AND THE 1980S PLAYED A MAJOR ROLE IN HELPING INDUSTRIES RESTRUCTURE THUS SPEEDING THE ADJUSTMENT TO THE NEW BUSINESS ENVIRONMENT WHILE THESE REVOLUTIONS BROUGHT PROSPERITY THE LARGE COSTS ASSOCIATED WITH THE OBSOLESCENCE OF HUMAN AND PHYSICAL CAPITAL IN CERTAIN INDUSTRIES GENERATED SUBSTANTIAL HARDSHIP MISUNDERSTANDING AND BITTERNESS IN BOTH THE 19TH AND 20TH CENTURIES CRITICISM ON THE PART OF THOSE WHO COULD NOT OR WOULD NOT ADJUST TO MODERNIZATION WAS FOLLOWED BY PUBLIC POLICY CHANGES THAT RESTRICTED THE CAPITAL MARKETS IN THE 19TH CENTURY THROUGH THE PASSAGE OF ANTITRUST LAWS RESTRICTING COMBINATIONS IN THE LATE 1980S WITH THE REREGULATION OF THE CREDIT MARKETS ANTITAKEOVER LEGISLATION AND RESTRICTIVE COURT DECISIONS THESE RESTRICTIONS WERE BASED ON SPECIOUS CLAIMS ABOUT ECONOMIC DECLINE THAT ARE IN COMPLETE CONFLICT WITH THE DATA NOW AVAILABLE THE MACROECONOMIC DATA FOR THE 1980S SHOW PRODUCTIVITY GAINS THAT IN MANY WAYS PARALLEL THOSE OF THE 19TH CENTURY THE WATERSHED YEAR WAS 1981 TOTAL PRODUCTIVITY GROWTH IN THE MANUFACTURING SECTOR MORE THAN DOUBLED AFTER 1981 TO 33 A YEAR IN THE 198190 PERIOD FROM 14 A YEAR IN THE 195081 PERIOD NOMINAL UNIT LABOR COSTS STOPPED THEIR 17YEAR RISE AND REAL UNIT LABOR COSTS DECLINED 25 THESE LOWER LABOR COSTS CAME NOT FROM REDUCED WAGES OR EMPLOYMENT BUT FROM INCREASED PRODUCTIVITY NOMINAL AND REAL HOURLY COMPENSATION INCREASED BY A TOTAL OF 42 AND 03 A YEAR RESPECTIVELY OVER THE 198189 PERIOD MANUFACTURING EMPLOYMENT REACHED A LOW IN 1983 BUT BY 1989 IT HAD EXPERIENCED A SMALL CUMULATIVE INCREASE OF 55 MEANWHILE THE ANNUAL GROWTH IN LABOR PRODUCTIVITY INCREASED TO 38 BETWEEN 1981 AND 1990 FROM 23 BETWEEN 1950 AND 1981 A 30YEAR DECLINE IN CAPITAL PRODUCTIVITY WAS REVERSED WHEN THE ANNUAL CHANGE IN THE PRODUCTIVITY OF CAPITAL INCREASED TO 203 BETWEEN 1981 AND 1990 FROM A NEGATIVE 103 BETWEEN 1950 AND 1981 DURING THE 1980S THE REAL VALUE OF PUBLIC FIRMS' EQUITY MORE THAN DOUBLED TO 3 TRILLION FROM 14 TRILLION IN ADDITION REAL MEDIAN INCOME INCREASED AT THE RATE OF 18 A YEAR BETWEEN 1982 AND 1989 REVERSING THE 1 A YEAR DECREASE THAT OCCURRED FROM 1973 TO 1982 THESE GAINS IN PRODUCTIVITY EFFICIENCY AND WELFARE HAVE BEEN IGNORED BY THOSE POLITICIANS AND MEDIA PUNDITS WHO CONTINUE TO CHARACTERIZE THE 1980S AS A DECADE OF GREED AND EXCESS PARTICULAR LOATHING IS EXPRESSED FOR MERGERSANDACQUISITIONS TRANSACTIONS 35000 OF WHICH OCCURRED FROM 1976 TO 1990 WITH A TOTAL VALUE OF 26 TRILLION THE ATTACK ON M&A TRANSACTIONS HAS BEEN CENTERED ON THE HIGHYIELD OR JUNK BOND MARKET HOWEVER HERE AGAIN THE ATTACKS ON CAPITAL MARKET INSTRUMENTS WERE ILLINFORMED WHAT HAS BEEN MISSED HERE IS THE ENORMOUSLY PRODUCTIVE IMPACT THAT HIGHYIELD BONDS HAD IN OPENING THE MANAGEMENT OF AMERICA'S LARGEST CORPORATIONS TO MONITORING AND DISCIPLINE FROM THE CAPITAL MARKETS THEY ALSO HELPED PROVIDE CAPITAL FOR NEWCOMERS TO COMPETE WITH EXISTING FIRMS IN THE PRODUCT MARKETS HIGHYIELD BONDS OPENED THE PUBLIC CAPITAL MARKETS TO SMALL RISKY AND UNRATED FIRMS ACROSS THE COUNTRY AND MADE IT POSSIBLE FOR SOME OF THE COUNTRY'S LARGEST FIRMS TO BE TAKEN OVER CAPITAL MARKET PRESSURES SUCH AS THESE WHILE NOT PERFECT CAN SIGNIFICANTLY INCREASE EFFICIENCY BY BRINGING ABOUT EARLIER ADJUSTMENTS AND AVOIDING MUCH OF THE WASTE GENERATED WHEN FAILURE IN THE PRODUCT MARKETS FORCES DOWNSIZING AND EXIT BY EXIT WE MEAN AN INDUSTRY SHUTTING DOWN ITS LEAST EFFICIENT FACILITIES TO REDUCE EXCESS CAPACITY IN INDUSTRY AFTER INDUSTRY WITH EXCESS CAPACITY MANAGERS FAIL TO RECOGNIZE THAT THEY THEMSELVES MUST DOWNSIZE FOR EXAMPLE WIDESPREAD CONSUMER ACCEPTANCE OF RADIAL TIRES MEANT THAT WORLDWIDE TIRE CAPACITY HAD TO SHRINK BY ABOUT 66 BECAUSE RADIALS LAST THREE TO FIVE TIMES LONGER THAN BIASPLY TIRES INSTEAD COMPANIES LIKE GENCORP MAKER OF GENERAL TIRES DRAMATICALLY INCREASED INVESTMENT IN R&D AND MARKETING FOR THEIR TIRE BUSINESS MANAGERS' ATTITUDES IN SUCH SITUATIONS WERE FREQUENTLY EQUIVALENT TO THIS IS A VERY TOUGH BUSINESS WE HAVE TO MAKE MAJOR INVESTMENTS SO THAT WE WILL HAVE A CHAIR WHEN THE MUSIC STOPS INCREASED INVESTMENT IS HARDLY A SOCIALLY OPTIMAL RESPONSE FOR MANAGERS IN A DECLINING INDUSTRY WITH EXCESS CAPACITY EVEN WHEN MANAGERS DO ACKNOWLEDGE THE REQUIREMENT FOR EXIT IT IS OFTEN DIFFICULT FOR THEM TO INITIATE THE SHUTDOWN FOR MANAGERS IMPLEMENTING THESE DECISIONS SHUTTING PLANTS OR LIQUIDATING THE FIRM CAUSES PERSONAL PAIN CREATES UNCERTAINTY AND INTERRUPTS OR SIDETRACKS CAREERS RATHER THAN CONFRONTING THIS PAIN MANAGERS GENERALLY RESIST SUCH ACTIONS AS LONG AS THEY HAVE THE CASH FLOW TO SUBSIDIZE THE LOSING OPERATIONS INDEED FIRMS WITH LARGE POSITIVE CASH FLOW WILL OFTEN INVEST IN EVEN MORE MONEYLOSING SITUATIONS PROVIDING DRAMATIC EVIDENCE OF THE FAILURE OF CORPORATE INTERNAL CONTROL SYSTEMS HEADED BY BOARDS OF DIRECTORS THIS IS PRECISELY WHERE THE FORCES OF THE CAPITAL MARKETS THE LBOS LEVERAGED RESTRUCTURINGS TAKEOVERS AND VENTURE CAPITAL FIRMS DID SO MUCH TO RATIONALIZE INVESTMENT AND MANAGEMENT DECISIONS IN THE 1980S IN FACT THE RESTRUCTURING STRATEGIES OF LBO ASSOCIATIONS AND VENTURE CAPITAL FUNDS PROVIDE A BLUEPRINT FOR MANAGERS AND BOARDS WHO WISH TO MAKE THEIR TOPLEVEL CONTROL SYSTEMS MORE EFFICIENT BOTH GOVERNANCE SYSTEMS ARE CHARACTERIZED BY CEOS WHO ARE SELDOM THE CHAIRMAN OF THE BOARD THUS INCREASING THE FLEXIBILITY OF A BOARD TO HANDLE AN INEFFICIENT CEO FINALLY THE CLOSE RELATIONSHIP BETWEEN THE LBO PARTNERS OR VENTURE FUND PARTNERS AND THE OPERATING COMPANIES FACILITATES THE INFUSION OF EXPERTISE FROM THE BOARD DURING TIMES OF CRISIS IT IS NOT UNUSUAL FOR A PARTNER TO JOIN THE MANAGEMENT TEAM EVEN AS CEO TO HELP AN ORGANIZATION THROUGH SUCH EMERGENCIES VERY IMPORTANTLY THERE ARE MARKET FORCES THAT OPERATE TO LIMIT THE HUMAN TENDENCY TO MICROMANAGE AND THEREBY OVERCENTRALIZE MANAGEMENT IN THE HEADQUARTERS STAFF THE ERA OF THE KIND OF MARKETENFORCED MANAGEMENT DISCIPLINE DESCRIBED ABOVE REFERRED TO AS THE CONTROL MARKET CAME TO AN END IN LATE 1989 AND 1990 INTENSE CONTROVERSY AND OPPOSITION FROM CORPORATE MANAGERS ASSISTED BY CHARGES OF FRAUD THE INCREASE IN DEFAULT AND BANKRUPTCY RATES AND INSIDER TRADING PROSECUTIONS CAUSED THE SHUTDOWN OF THE CONTROL MARKET THROUGH POLITICAL LEGAL AND REGULATORY MEANS LEVERAGED BUYOUTS AND MANAGEMENT BUYOUTS FELL TO SLIGHTLY MORE THAN 1 BILLION IN 1991 FROM 80 BILLION IN 1988 IN THE SAME YEAR THE TOTAL VALUE OF TRANSACTIONS FELL TO 96 BILLION FROM 340 BILLION IN 1988 THE WEAKENING OF THE CONTROL MARKET AS AN EFFECTIVE INFLUENCE ON US CORPORATIONS HAS NOT ENDED THE RESTRUCTURING BUT IT MEANS THAT ORGANIZATIONS HAVE TYPICALLY POSTPONED ADDRESSING THE PROBLEMS THEY FACE UNTIL FORCED TO BY FINANCIAL DIFFICULTIES GENERATED BY THE PRODUCT MARKETS UNFORTUNATELY THE DELAY MEANS THAT SOME OF THESE ORGANIZATIONS WILL NOT SURVIVE OR WILL SURVIVE AS MERE SHADOWS OF THEIR FORMER SELVES MR JENSEN IS A PROFESSOR OF BUSINESS ADMINISTRATION AT HARVARD BUSINESS SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR GENCORP RESTRUCTURING CONTINUES TIRELESSLY WSJ JAN 28 1994 9401030067 YY94 MM01 9401280052 940128 BUSINESS BRIEF CHRYSLER CORP SOME JEEPS ARE RECALLED TO CORRECT STEERING PROBLEM CHRYSLER CORP SAID IT IS RECALLING 115000 1993 JEEP GRAND CHEROKEES AND GRAND WAGONEERS TO CORRECT A PROBLEM WITH THE STEERING COLUMN THE RECALL IS THE THIRD SINCE CHRYSLER LAUNCHED THE LUXURIOUS JEEP IN 1992 AND HIGHLIGHTS THE QUALITY CHALLENGES FACING THE AUTO MAKER EVEN ON ITS NEWER VEHICLES OWNERS OF THE JEEPS ARE BEING NOTIFIED THIS WEEK TO TAKE THEIR VEHICLES IN FOR REPAIR THE PROBLEM STEMS FROM A FLAW IN PINS THAT HOLD TOGETHER THE TOP AND BOTTOM HALVES OF THE JEEPS' STEERING COLUMNS CHRYSLER SAID NO ACCIDENTS OR INJURIES HAVE OCCURRED AS A RESULT OF THE PROBLEM AND THAT ONLY 12 INCIDENTS HAVE BEEN REPORTED A GOOD PERCENTAGE OF THE 115000 JEEPS WERE THE SUBJECT OF TWO EARLIER RECALLS INVOLVING 117000 JEEPS WITH A FAULTY DOOR LATCH AND SUSPENSION BOLT 9401280051 940128 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO COMPANY EXPECTS TO SWING TO PROFIT WITH 1993 RESULTS GOODYEAR TIRE & RUBBER CO SAID IT EXPECTS 1993 NET INCOME IN THE RANGE OF 385 MILLION TO 390 MILLION OR 260 TO 265 A SHARE INCLUDING A PREVIOUSLY ANNOUNCED ACCOUNTING CHARGE OF 863 MILLION RELATED TO POSTEMPLOYMENT BENEFITS RESULTS WILL BE REPORTED FEB 9 IN 1992 THE TIRE MAKER POSTED A LOSS OF 6586 MILLION OR 461 A SHARE REFLECTING A MAY 1993 2FOR1 STOCK SPLIT AFTER EXTRAORDINARY CHARGES THAT INCLUDED A NONCASH CHARGE OF MORE THAN 1 BILLION FOR RETIREE NONPENSION BENEFITS WORLDWIDE SALES FOR 1993 ARE EXPECTED TO BE ABOUT 116 BILLION UP FROM 114 BILLION EXCLUDING SALES OF ABOUT 300 MILLION FROM DIVESTED NONCORE BUSINESSES GOODYEAR SAID CORPORATE DEBT WHICH IN MID1991 CLIMBED TO 37 BILLION HAS BEEN REDUCED TO JUST OVER 14 BILLION AND INTEREST EXPENSE HAS BEEN CUT BY ALMOST HALF 9401280050 940128 BUSINESS BRIEF GEORGIAPACIFIC CORP COMPANY REPORTS LOSSES FOR 4TH QUARTER AND YEAR GEORGIAPACIFIC CORP STILL GRAPPLING WITH LOW PULP PRICES REPORTED A LOSS FOR BOTH THE FOURTH QUARTER AND THE YEAR FOR THE QUARTER THE ATLANTA FORESTPRODUCTS CONCERN REPORTED A 36 MILLION LOSS OR 41 CENTS A SHARE COMPARED WITH YEAREARLIER PROFIT OF 104 MILLION OR 121 A SHARE THE LATEST QUARTER INCLUDES A 26 MILLION CHARGE RELATED TO AN EMPLOYEECOMPENSATION PROGRAM SALES ROSE TO 32 BILLION FROM 291 BILLION A YEAR AGO THE QUARTERLY LOSS WAS ATTRIBUTED PARTLY TO DOWNTIME AT SEVERAL MAJOR PULP AND PAPER PLANTS CAUSED BY A COMBINATION OF FACTORS INCLUDING EQUIPMENT REPAIRS AND CONTINUING SLACK DEMAND ACCORDING TO A SPOKESWOMAN FOR THE YEAR GEORGIAPACIFIC REPORTED A LOSS OF 34 MILLION OR 39 CENTS A SHARE COMPARED WITH A 1992 LOSS OF 124 MILLION OR 143 A SHARE 9401280049 940128 BUSINESS BRIEF NORTH AMERICAN TECHNOLOGIES GROUP UNIT RECEIVED LINE OF CREDIT FROM EURO SCOTIA FUNDING NORTH AMERICAN TECHNOLOGIES GROUP INC SAID ONE OF ITS UNITS RECEIVED A CREDIT LINE OF 18 MILLION FROM EURO SCOTIA FUNDING BARBADOS LTD UNDER TERMS NORTH AMERICAN TECHNOLOGIES INC THE UNIT WILL BE ENTITLED TO DRAW AS MUCH AS 500000 A MONTH THE LINE WILL EXTEND THROUGH JAN 31 1997 ANY AMOUNTS UNPAID AT THAT TIME WILL BE REPAID OVER A PERIOD OF SEVEN YEARS AT 8 INTEREST A YEAR IN LIEU OF PAYMENT IN CASH EURO SCOTIA MAY ELECT TO CONVERT UNPAID AMOUNTS INTO SHARES OF NORTH AMERICAN AT THE MARKET PRICE AT THE TIME OF THE ELECTION NORTH AMERICAN WILL USE THE FUNDS FOR SEVERAL PURPOSES INCLUDING WORKING CAPITAL AND THE EXPANSION OF ITS ENVIRONMENTAL BUSINESS 9401280048 940128 BUSINESS BRIEF TRINOVA CORP US MARKETS APPEAR BRIGHT BUT PROBLEMS SEEN IN EUROPE TRINOVA CORP A MAUMEE OHIO MAKER OF AUTOMOTIVE AEROSPACE AND DEFENSE COMPONENTS SAID IT SEES CONTINUED IMPROVEMENT IN THE US INDUSTRIAL MARKETS BUT A DEPRESSED EUROPE COULD HURT SALES GROWTH IN THAT MARKET THIS YEAR TRINOVA SAID IT EARNED 45 MILLION OR 16 CENTS A SHARE IN THE FOURTH QUARTER INCLUDED IN THOSE RESULTS IS A CHARGE OF 47 MILLION OR 17 CENTS A SHARE RELATED TO A PROVISION FOR ADDITIONAL VALUEADDED TAXES OWED IN PRIOR YEARS IN BRAZIL IN THE YEAREARLIER QUARTER TRINOVA EARNED 61 MILLION OR 21 CENTS A SHARE SALES SLIPPED TO 4017 MILLION FROM 4316 MILLION WE EXPECT TO SEE CONTINUED IMPROVEMENT IN THE US INDUSTRIAL MARKETS IN 1994 WHICH WILL HELP STRENGTHEN OUR INDUSTRIAL MARGINS FURTHER SAID DARRYL F ALLEN TRINOVA'S CHAIRMAN AND CHIEF EXECUTIVE MR ALLEN SAID THAT EUROPE SEEMS TO BE STABILIZING BUT EXPECTS THAT THE CONTINUED DEPRESSED LEVELS OF EUROPEAN AUTO PRODUCTION AND SEVERE PRICE COMPETITION WILL INHIBIT OUR SALES GROWTH IN 1994 9401280047 940128 BUSINESS BRIEF OHM CORP TWO CONTRACTS ARE AWARDED TO COMPANY BY AIR FORCE OHM CORP FINDLAY OHIO SAID IT RECEIVED TWO CONTRACTS FROM THE US AIR FORCE TO REMEDIATE HAZARDOUS WASTE SITES AT THREE US BASES THE ENVIRONMENTAL REMEDIATION CONCERN SAID BOTH CONTRACTS ARE INDEFINITE DELIVERY/INDEFINITE QUANTITYTYPE CONTRACTS WITH A BASE YEAR PLUS FOUR OPTION YEARS THAT MAY BE EXTENDED AT THE AIR FORCE'S OPTION OHM SAID IT IS REASONABLE TO EXPECT THE POTENTIAL VALUE OF THE CONTRACTS TO BE 110 MILLION OVER FIVE YEARS UNDER THE FIRST CONTRACT OHM IS ONE OF SIX CONTRACTORS CHOSEN TO COMPETE FOR AN ESTIMATED 80 MILLION A YEAR OF REMEDIAL PROJECTS AT HILL AIR FORCE BASE OGDEN UTAH UNDER THE OTHER CONTRACT THE COMPANY IS ONE OF FOUR COMPANIES COMPETING FOR AN ESTIMATED 38 MILLION A YEAR OF REMEDIAL PROJECTS AT TINKER AIR FORCE BASE NEAR OKLAHOMA CITY AND EGLIN AIR FORCE BASE MARY ESTER FLA 9401280046 940128 BUSINESS BRIEF SABAH FOREST INDUSTRIES SDN BHD LION GROUP TO BUY COMPANY FROM MALAYSIA'S SABAH STATE LION GROUP SIGNED A LONGAWAITED PRIVATIZATION AGREEMENT WITH THE GOVERNMENT OF THE MALAYSIAN STATE OF SABAH TO ACQUIRE ITS FINANCIALLY AILING SABAH FOREST INDUSTRIES SDN BHD IN A CASH TRANSACTION VALUED AT 500 MILLION MALAYSIAN DOLLARS US1818 MILLION THE SIGNING OF THE DEAL CLOSED ONE CHAPTER IN THE DIVESTMENT OF ONE OF THE STATE'S LARGEST ASSETS AND ONE OF THE BIGGEST DRAINS ON THE STATE'S COFFERS MARKET ATTENTION WILL FOCUS ON MEASURES TO BE ADOPTED BY THE KUALA LUMPURBASED LION GROUP TO REVIVE THE DEEPLY INDEBTED SFI WHOSE OPERATIONS INCLUDE LOGGING AND PULPANDPAPER MANUFACTURING MALAYSIAN INVESTMENT ANALYSTS ARE WARY OF LION'S ABILITY TO TURN AROUND SFI BECAUSE THE SABAH COMPANY'S OPERATIONS DON'T MESH WITH LION'S WHICH INVOLVE STEEL MANUFACTURING MOTORCYCLE ASSEMBLY PROPERTY DEVELOPMENT AND RETAILING 9401280045 940128 BUSINESS BRIEF LYONDELL PETROCHEMICAL CO CAPITAL SPENDING IS SLATED TO RISE TO 90 MILLION IN '94 LYONDELL PETROCHEMICAL CO HOUSTON SAID IT SET ITS 1994 CAPITAL SPENDING AT 90 MILLION COMPARED WITH 1993 CAPITAL EXPENDITURES OF 69 MILLION THE PETROCHEMICAL COMPANY ALLOTED 30 MILLION TO PETROCHEMICAL OPERATIONS COMPARED WITH 15 MILLION IN 1993 THE REMAINING 60 MILLION WILL GO TO LYONDELL'S AFFILIATE LYONDELLCITGO REFINING CO WHICH RECEIVED 45 MILLION IN 1993 THE 1994 BUDGET INCLUDES BUILDING COSTS FOR A BUTYLENE ISOMERIZATION UNIT AT THE COMPANY'S CHANNELVIEW TEXAS PLANT A PROJECT LYONDELL SAID IT EXPECTS TO COMPLETE BY THE FOURTH QUARTER NOT INCLUDED IN THE 1994 BUDGET IS THE 150 MILLION LYONDELLCITGO REFINING CO SAID IT WILL SPEND THIS YEAR ON AN 800 MILLION UPGRADE OF ITS HOUSTON REFINERY A JOINT VENTURE WITH CITGO PETROLEUM CORP A US SUBSIDIARY OF PETROLEOS DE VENEZUELA SA 9401280044 940128 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD CAR MAKER PLANS TO REDUCE WHITECOLLAR LABOR FORCE FUJI HEAVY INDUSTRIES LTD A MAJOR JAPANESE CAR MAKER THAT PRODUCES SUBARUBRAND CARS WILL CUT ITS WHITECOLLAR LABOR FORCE BY 500600 EMPLOYEES DURING THE FISCAL YEAR BEGINNING APRIL 1 A COMPANY SPOKESWOMAN SAID THE COMPANY WILL MAKE THE CUTS BY REDUCING THE NUMBER OF NEW EMPLOYEES HIRED AND BY NOT REPLACING SOME RETIRING EMPLOYEES INSTEAD OF BY RESORTING TO LAYOFFS SHE ADDED OF ITS TOTAL LABOR FORCE OF 15000 FUJI HEAVY HAS 4000 WHITECOLLAR EMPLOYEES INVOLVED IN MANAGEMENT ACCOUNTING AND OPERATIONS THE SPOKESWOMAN SAID FUJI HEAVY HAS NO ESTIMATES OF THE COST SAVINGS FOR THE NEXT FISCAL YEAR FROM THE PERSONNEL CUTS FUJI HEAVY HAS SEEN SLUGGISH SALES FOR SEVERAL YEARS AND POSTED A NET LOSS IN TWO OF THE PAST THREE YEARS 9401280043 940128 BUSINESS BRIEF JOSTENS INC FRUIT OF THE LOOM TO BUY ARTEX SPORTSWEAR BUSINESS JOSTENS INC SAID IT AGREED TO SELL ITS ARTEX MANUFACTURING SPORTSWEAR BUSINESS TO CHICAGOBASED APPAREL MAKER FRUIT OF THE LOOM INC FOR 467 MILLION THE MINNEAPOLIS MAKER OF CLASS RINGS YEARBOOKS AND EDUCATIONAL SOFTWARE DISCLOSED LAST SUMMER THAT IT WANTED TO SELL THE UNIT SAYING IT DIDN'T FIT WITH JOSTENS' STRATEGIC FOCUS THE SPORTSWEAR UNIT'S MANAGEMENT SUBSEQUENTLY PROPOSED TO ACQUIRE THE OPERATION AND JOSTENS DISCLOSED IN NOVEMBER THAT IT HAD RECEIVED AN UNSOLICITED RIVAL PROPOSAL FOR ARTEX FROM A PARTY IT DIDN'T IDENTIFY A SPOKESMAN CONFIRMED THAT THE NOVEMBER BID CAME FROM FRUIT OF THE LOOM ARTEX UNDER LICENSING ARRANGEMENTS MANUFACTURES CLOTHES DECORATED WITH LOGOS OF SPORTS TEAMS DISNEY FIGURES AND THE LIKE IT HAD SALES IN THE FISCAL YEAR ENDED JUNE 30 OF ABOUT 76 MILLION 9401280042 940128 BUSINESS BRIEF GILLETTE CO COMPANY'S 4THPERIOD PROFIT FELL SHARPLY AFTER CHARGE GILLETTE CO REPORTED FOURTHQUARTER NET INCOME OF 49 MILLION OR TWO CENTS A SHARE AFTER A CHARGE FOR A PREVIOUSLY ANNOUNCED REALIGNMENT ON SALES OF 162 BILLION EXCLUDING THE CHARGE EARNINGS WERE 169 MILLION THE ONETIME CHARGE OF 1641 MILLION REDUCED PROFIT BY 74 CENTS A SHARE FOR THE YEARAGO QUARTER GILLETTE REPORTED NET INCOME OF 135 MILLION OR 61 CENTS A SHARE ON SALES OF 151 BILLION THE BOSTON PERSONALCARE PRODUCTS COMPANY HAS ANNOUNCED PLANS TO REORGANIZE ITS FACILITIES WORLDWIDE SHEDDING 2000 EMPLOYEES MOSTLY OVERSEAS AS IT ADDS ABOUT THAT MANY JOBS ELSEWHERE FOR 1993 THE COMPANY HAD NET INCOME OF 2883 MILLION OR 129 A SHARE COMPARED WITH NET OF 513 MILLION OR 232 A SHARE IN 1992 SALES WERE 541 BILLION UP 5 FROM 516 BILLION IN 1992 9401280041 940128 BUSINESS BRIEF NYNEX CORP PUBLIC PHONES TO BE INSTALLED THAT ACCEPT PREPAID CARDS NYNEX CORP NEW YORK SAID IT WILL INSTALL PUBLIC PHONES IN NEW YORK THAT ACCEPT PREPAID TELEPHONE CARDS INSTEAD OF COINS THE REGIONAL PHONE COMPANY SIGNED AN AGREEMENT WITH A UNIT OF JAPAN'S MITSUI & CO TO ACQUIRE 5000 COINLESS PHONES BY 1996 NYNEX SAID IT WILL INSTALL 1000 SUCH PHONES IN DOWNTOWN MANHATTAN THIS YEAR STARTING IN JUNE THE TELEPHONE CARD IS INSERTED INTO A SLOT ON THE PHONE AND THE CASH AMOUNT AVAILABLE IS READ BY A SCANNER CUSTOMERS WILL BE ABLE TO BUY THE CARDS IN 5 10 AND 20 DENOMINATIONS FROM VENDING MACHINES NEWSSTANDS AND OTHER LOCATIONS 9401280040 940128 TEXAS UTILITIES UNIT'S RATES DALLAS TEXAS UTILITIES CO'S TU ELECTRIC SUBSIDIARY SAID IT WILL ASK THE PUBLIC UTILITY COMMISSION TO RECONSIDER ITS DECISION TURNING DOWN THE COMPANY'S 153 RATE INCREASE REQUEST ALTHOUGH THE COMMISSION HASN'T YET ISSUED A FINAL ORDER THE UTILITY SAYS IT UNDERSTANDS THE INCREASE WOULD BE 87 THIS INCREASE IS INSUFFICIENT TO COVER THE COST OF SUSTAINING RELIABLE ELECTRIC SERVICE AND TO BEGIN RESTORING THE COMPANY'S FINANCIAL INTEGRITY TU CHAIRMAN ERLE NYE SAID 9401280039 940128 MARKETING BRIEF GANNETT CO NET INCOME CLIMBED 13 IN FISCAL FOURTH QUARTER GANNETT CO ARLINGTON VA CITING GROWTH IN NEWSPAPER AND BROADCAST ADVERTISING REVENUE SAID NET INCOME JUMPED 13 IN THE FISCAL FOURTH QUARTER FOR THE QUARTER ENDED DEC 26 THE MEDIA CONCERN REPORTED EARNINGS OF 129 MILLION OR 88 CENTS A SHARE COMPARED WITH 1142 MILLION OR 79 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 51 TO 9826 MILLION FROM 9351 MILLION FOR THE YEAR NET NEARLY DOUBLED TO 3978 MILLION OR 272 A SHARE FROM 1997 MILLION OR 139 A SHARE YEAREARLIER RESULTS INCLUDED A 180 MILLION CHARGE FOR RETIREMENT BENEFITS AND A 34 MILLION CREDIT RELATED TO INCOME TAXES REVENUE ROSE 5 TO 364 BILLION FROM 347 BILLION GANNETT SAID THE RESULTS REFLECT SIGNIFICANT RECOVERY IN THE BROADCAST SEGMENT AND PROFIT FROM FLAGSHIP NEWSPAPER USA TODAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GANNETT SHARES FELL 875 CENTS TO 56875 9401280038 940128 BUSINESS BRIEF SHOPSMITH INC FIRM TO CLOSE NINE STORES SELL 12 TO WOODCRAFT INC SHOPSMITH INC SAID IT IS CLOSING NINE RETAIL STORES AND SELLING 12 OTHERS RESULTING IN A SUBSTANTIAL RESTRUCTURING CHARGE FOR ITS THIRD QUARTER ENDED DEC 31 THE AMOUNT HASN'T BEEN DETERMINED ACCORDING TO THE MAKER OF WOODWORKING TOOLS THE DAYTON OHIO COMPANY SAID OPERATING RESULTS EXCLUDING THE RESTRUCTURING CHARGE ARE EXPECTED TO BE SUBSTANTIALLY BELOW THE YEARAGO PERIOD IN THE YEARAGO QUARTER SHOPSMITH EARNED 107000 OR FIVE CENTS A SHARE ON REVENUE OF 157 MILLION THE 12 STORES ARE BEING SOLD TO WOODCRAFT INC A PARKERSBURG WVA WOODWORKING RETAILER AND MAIL ORDER COMPANY SHOPSMITH WILL HAVE 23 STORES FOLLOWING THE CLOSINGS AND SALES 9401280037 940128 BUSINESS BRIEF ULTRATECH STEPPER INC NET OF 4TH PERIOD ESTIMATED TO EXCEED ANALYST FORECASTS ULTRATECH STEPPER INC A CHIP AND COMPUTER STORAGEEQUIPMENT MAKER SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS EXCEEDING ANALYSTS' CONSENSUS ESTIMATES BY AT LEAST 10 THE SAN JOSE CALIF COMPANY WILL FORMALLY ANNOUNCE ITS RESULTS NEXT WEEK BUT IN AN INTERVIEW CHIEF EXECUTIVE OFFICER ARTHUR ZAFIROPOULO SAID HE EXPECTS ULTRATECH TO POST EARNINGS OF 16 MILLION TO 17 MILLION OR 22 CENTS TO 23 CENTS A SHARE ON REVENUE OF 164 MILLION ANALYSTS HAVE EXPECTED THE COMPANY TO EARN FROM 19 CENTS TO 20 CENTS A SHARE ON REVENUE OF ABOUT 16 MILLION MR ZAFIROPOULO ATTRIBUTED THE BETTERTHANEXPECTED RESULTS TO HIGHER SALES ABROAD ULTRATECH'S BACKLOG ALSO IS STRONGER AS OF DEC 31 THE VALUE OF ORDERS EXCEEDED 30 MILLION MR ZAFIROPOULO SAID 9401280036 940128 ARMCOSTEELWORKERS CONTRACT MIDDLETOWN OHIO ARMCO STEEL CO AND THE UNITED STEELWORKERS OF AMERICA AGREED TO A JUNE 1 EXPIRATION DATE FOR THEIR EXISTING LABOR CONTRACT ARMCO IS A 5050 JOINT VENTURE BETWEEN ARMCO INC AND KAWASAKI STEEL CORP THE AGREEMENT COVERS ABOUT 1200 EMPLOYEES AT ARMCO STEEL'S ASHLAND KY STEELMAKING OPERATIONS THE PARTIES ALSO AGREED TO A THIRDPARTY DISPUTE RESOLUTION PROCEDURE IF NEEDED TO REACH A NEW CONTRACT UNDER TERMS OF THE EXTENSION NO STRIKES SLOWDOWNS WORK STOPPAGES OR LOCKOUTS WILL OCCUR WHILE A CONTRACT IS NEGOTIATED 9401280035 940128 BUSINESS BRIEF US LONG DISTANCE CORP CONCERN CANCELS PLAN TO SELL 16 MILLION SHARES TO PUBLIC US LONG DISTANCE CORP SAN ANTONIO CANCELED PLANS TO SELL 16 MILLION OF ITS SHARES TO THE PUBLIC IN THE WAKE OF A SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING THE LONGDISTANCE AND OPERATORSERVICES COMPANY HAD PUT THE OFFERING ON HOLD LAST MONTH CITING THE INFORMAL SEC PROBE IN CANCELING THE OFFERING THE COMPANY SAID THE INQUIRY WASN'T A FACTOR OF THE 16 MILLION SHARES IN THAT OFFERING 12 MILLION WERE TO BE SOLD BY THE COMPANY AND 400000 BY CERTAIN STOCKHOLDERS INCLUDING OFFICERS YESTERDAY THE COMPANY SAID IT WOULD REGISTER WITH THE SEC PLANS FOR CERTAIN STOCKHOLDERS NOT INCLUDING OFFICERS TO SELL ABOUT 15 MILLION SHARES THE SEC INQUIRY RELATES TO THE ACCOUNTING OF CERTAIN RECEIVABLES THAT THE COMPANY ACQUIRES THE COMPANY CONTENDS ITS FINANCIAL RESULTS ARE FAIRLY STATED 9401280034 940128 MARKETING & MEDIA COLUMBIA PICTURES OFFICIAL QUITS CULVER CITY CALIF SONY CORP'S COLUMBIA PICTURES SAID MICHAEL NATHANSON RESIGNED AS EXECUTIVE VICE PRESIDENT OF THE STUDIO MR NATHANSON'S DEPARTURE HAD BEEN EXPECTED FOR SOME TIME HE WAS APPOINTED TO THE POST LAST YEAR WHEN LISA HENSON WAS BROUGHT IN FROM TIME WARNER INC'S WARNER BROS UNIT TO SUCCEED HIM AS HEAD OF PRODUCTION AT THE STUDIO THE MOVE TOOK HIM OUT OF DIRECT OPERATING RESPONSIBILITY FOR MOVIE MAKING MR NATHANSON 38 YEARS OLD DECLINED TO COMMENT STUDIO EXECUTIVES SAID HE IS CLOSE TO AN AGREEMENT TO JOIN NEW REGENCY PRODUCTIONS THE FILM COMPANY OF PRODUCER ARNON MILCHAN A SPOKESMAN FOR NEW REGENCY COULDN'T BE REACHED 9401280033 940128 BUSINESS BRIEF CALLAWAY GOLF CO FOURTHPERIOD NET DOUBLED STOCK DIVIDEND OF 100 SET CALLAWAY GOLF CO REPORTED FOURTHQUARTER NET INCOME DOUBLE THAT OF A YEAR EARLIER ANNOUNCED A 100 STOCK DIVIDEND AND SAID IT WILL QUADRUPLE ITS QUARTERLY PAYOUT THE CARLSBAD CALIF GOLFCLUB MAKER SAID NET JUMPED TO 103 MILLION OR 58 CENTS A SHARE FROM 51 MILLION OR 33 CENTS A SHARE A YEAR EARLIER SALES SOARED 86 TO 682 MILLION FROM 367 MILLION CALLAWAY STOCK CLIMBED 4125 A SHARE OR 71 YESTERDAY TO CLOSE AT 62625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IT WILL PAY A 1FOR1 STOCK DIVIDEND ON MARCH 3 TO STOCK OF RECORD FEB 10 HAVING THE EFFECT OF A 2FOR1 STOCK SPLIT THE COMPANY SAID IT WILL EFFECTIVELY QUADRUPLE ITS QUARTERLY DIVIDEND PAYING FIVE CENTS A SHARE TO THE NEWLY DOUBLED SHARES ON MARCH 3 TO STOCK OF RECORD FEB 10 9401280032 940128 AUTHENTIC FITNESS CREDIT FACILITY VAN NUYS CALIF AUTHENTIC FITNESS CORP SAID IT PLANS TO REDUCE ITS ANNUAL INTEREST EXPENSE BY 800000 OR FIVE CENTS A SHARE BY REFINANCING A 100 MILLION CREDIT FACILITY WITH A NEW 100 MILLION CREDIT FACILITY THE SPORTSWEAR MAKER SAID THE NEW LOAN WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE LONDON INTERBANK OFFERED RATE OR LIBOR PLUS 1 REDUCED FROM LIBOR PLUS 275 ON ITS CURRENT LOAN 9401280031 940128 POLITICS & POLICY EARTHQUAKE ADDS TO CALIFORNIA GOVERNOR'S NEED FOR POLITICAL DISASTER RELIEF IN ELECTION YEAR BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL GRANADA HILLS CALIF AS HE TOURED EARTHQUAKEDAMAGED KENNEDY HIGH SCHOOL HERE THIS WEEK CALIFORNIA GOV PETE WILSON WALKED INTO A ROOM STREWN WITH BOOKS AND TWISTED METAL SHELVING AND SHOOK HIS HEAD WELL IT'S A MESS HE SAID BUT IT CAN ALL GET CLEANED UP THAT'S ALSO A PRETTY APT DESCRIPTION OF GOV WILSON'S POLITICAL SITUATION AS HE PREPARES TO RUN FOR REELECTION THIS YEAR FOLLOWING ONE OF THE COSTLIEST NATURAL DISASTERS IN HISTORY LIKE MOSES WATCHING PLAGUES DESCEND ON EGYPT MR WILSON HAS WATCHED DISASTERS RAIN DOWN ON CALIFORNIA IN HIS THREE YEARS AS GOVERNOR RIOTS WILDFIRES DEEP DEFENSE SPENDING CUTS SEVERE RECESSION THE LOSS OF 900000 JOBS AS THE PROBLEMS HAVE MOUNTED MR WILSON'S POPULARITY HAS SUNK UNTIL ONE PREEARTHQUAKE POLL SHOWED THAT 40 OF THOSE SURVEYED RATED HIS JOB PERFORMANCE AS POOR OR VERY POOR IT'S BEEN THE REPUBLICAN GOVERNOR SAYS WITH A DRY SMILE A REMARKABLE FIRST TERM SO THE SHOCK AND COST OF THE GIANT LOS ANGELESAREA EARTHQUAKE SHOULD JUST DRIVE ANOTHER NAIL INTO PETE WILSON'S POLITICAL COFFIN RIGHT MAYBE BUT MAYBE NOT GOV WILSON A STOLID BUT TENACIOUS EXMARINE HAS BEEN UNDERESTIMATED BEFORE ONLY TO RISE UP AND SLAY TWO OF CALIFORNIA'S DEMOCRATIC HEAVYWEIGHTS JERRY BROWN IN A 1982 SENATE RACE AND DIANNE FEINSTEIN IN HIS 1990 RUN FOR GOVERNOR AND NOW ALONG WITH ALL THE PROBLEMS THE EARTHQUAKE ALSO PRESENTS AN OPPORTUNITY FOR THE GOVERNOR TO REINFORCE THE CENTRAL IMAGE HE HAS TRIED TO PROJECT AS A TOUGH AND UNFLINCHING LEADER CAPABLE OF MAKING HARD DECISIONS IN TURBULENT TIMES WHAT THE REBUILDING EFFORT REPRESENTS IS A TEST SAYS DAN SCHNUR MR WILSON'S CAMPAIGN SPOKESMAN PEOPLE WILL HAVE TO PERCEIVE PETE WILSON AS SOMEBODY WHO HAS ACTED QUICKLY AND EFFECTIVELY HOW WELL THE GOVERNOR PERFORMS IN THAT TEST HAS BROAD IMPLICATIONS FOR IF MR WILSON CAN CONQUER SUCH SUBSTANTIAL OBSTACLES AND WIN REELECTION IN THE NATION'S MOST POPULOUS AND TROUBLED STATE HE WILL AUTOMATICALLY BECOME A FACTOR IN REPUBLICAN THINKING IN THE 1996 PRESIDENTIAL CAMPAIGN IN HIS QUEST FOR REELECTION GOV WILSON WILL HAVE TO FACE EITHER KATHLEEN BROWN THE TELEGENIC STATE TREASURER WHOSE BROTHER AND FATHER BOTH SERVED AS GOVERNOR OR JOHN GARAMENDI THE ENERGETIC AND BLUNT STATE INSURANCE COMMISSIONER BOTH CURRENTLY OUTSCORE THE GOVERNOR IN POLLSTERS' THEORETICAL MATCHUPS THOUGH BEFORE THE EARTHQUAKE THE WILSON CAMP SAW SIGNS HE WAS CLOSING THE GAP THAT TELLS ME THAT THE PEOPLE OF THE STATE ARE INTELLIGENT AND FAIRMINDED AND THEY'VE FINALLY COME TO THE CONCLUSION THAT THE RECESSION WAS NO MORE MY FAULT THAN THE EARTHQUAKE MR WILSON MAINTAINS IN AN INTERVIEW THERE'S NO DOUBT THAT THE EARTHQUAKE WILL COMPLICATE THE TASK OF MAKING A POLITICAL COMEBACK FOR STARTERS EARTHQUAKE COSTS IMPERIL THE GOVERNOR'S NEW AND AUSTERE 388 BILLION BUDGET THAT BUDGET WHICH SLICES FURTHER INTO SOCIAL SERVICES AND THE STATE BUREAUCRACY ALREADY HAS A 23 BILLION HOLE BECAUSE IT COUNTS ON MONEY GOV WILSON IS DEMANDING BUT MAY NEVER GET FROM THE FEDERAL GOVERNMENT TO COVER THE COST OF PROVIDING FEDERALLY MANDATED SERVICES FOR ILLEGAL IMMIGRANTS NOW THE EARTHQUAKE WILL LAY A WHOLE NEW SET OF COSTS ON THE STATE'S DOORSTEP AND THAT MEANS GOV WILSON WHO HAS NEVER FULLY RECOVERED FROM PUSHING THROUGH A 75 BILLION TAX INCREASE IN HIS FIRST YEAR ALREADY IS COMING UNDER PRESSURE FROM DEMOCRATS TO PROPOSE ANOTHER TAX INCREASE OF SOME KIND TO COVER EARTHQUAKE COSTS GOV WILSON SAYS HE'LL RAISE TAXES ONLY AS A LAST RESORT AND MAINTAINS IT IS FOOLHARDY TO BE TALKING OF DOING SO NOW BEFORE THE STATE'S FULL EARTHQUAKE COSTS ARE KNOWN THOSE PUSHING A TAX PACKAGE ARE SWINGING IN THE DARK HE COMPLAINS THEY DON'T KNOW WHETHER THE BALL'S OVER THE PLATE OR OVER THEIR HEADS THE GOVERNOR'S STRATEGY APPEARS TO BE TO HOLD OFF UNTIL HE CAN SQUEEZE AS MUCH ASSISTANCE AS POSSIBLE OUT OF FEDERAL COFFERS BUT THAT'S ALREADY LEADING TO SOME DEMOCRATIC GRUMBLING THAT HE IS RESPONDING TOO SLOWLY TO THE DISASTER AND THERE PROBABLY WILL BE MORE OVERT CRITICISM DOWN THE ROAD AS DEMOCRATS BEGIN ASKING WHY SOME AVAILABLE STATE BOND FUNDS HADN'T BEEN SPENT ON PROJECTS TO PREPARE ROADS AND BRIDGES TO WITHSTAND AN EARTHQUAKE ON TOP OF THOSE PROBLEMS THE EARTHQUAKE ALSO HAS SIDETRACKED TEMPORARILY MR WILSON'S EFFORTS TO RAISE THE PROFILE OF CRIME AND IMMIGRATION ISSUES WHERE HIS TOUGHGUY IMAGE HAS STRUCK A DEEPER CHORD WITH VOTERS THAN IT DOES ON ECONOMIC TROUBLES BUT PERHAPS THE BIGGEST DANGER OF ALL IS THE POSSIBILITY THAT THE EARTHQUAKE COULD STIFLE THE SIGNS OF RENEWED ECONOMIC OPTIMISM THAT HAD JUST STARTED TO POP UP MR WILSON ASSERTS THAT A PACKAGE OF INVESTMENT TAX INCENTIVES AND AN OVERHAUL OF THE STATE'S NOTORIOUS WORKERS COMPENSATION SYSTEM WHICH HE SIGNED INTO LAW LAST YEAR WERE BEGINNING TO BREATHE SOME JOBCREATING LIFE BACK INTO THE STATE'S ECONOMY NOW IT'S IMPOSSIBLE TO KNOW HOW MUCH OF THAT BUSINESS CONFIDENCE MIGHT ERODE ALL TOLD MR WILSON IS CORNERED IN ALMOST EVERY WAY YOU CAN BE ASSERTS DEMOCRATIC CONSULTANT AND POLLSTER PAUL MASLIN BUT DISASTER PROVIDES OPENINGS AS WELL FOR THE GOVERNOR FOR ONE THING THE EARTHQUAKE ACTUALLY WILL HAVE SOME POSITIVE ECONOMIC EFFECTS AS BILLIONS OF DOLLARS IN FEDERAL MONEY POUR INTO THE STATE AND CREATE JOBS REBUILDING ROADS BRIDGES AND APARTMENTS SOME CALIFORNIA CIVIL RIGHTS LEADERS ARE EVEN BEGINNING TO ARGUE THAT PROCESS CAN SALVE SOME OF THE WOUNDS LEFT FROM AN EARLIER DISASTER THE LOS ANGELES RIOTS IF SOME OF THE JOBS ARE FUNNELED TO UNEMPLOYED URBAN WORKERS WHAT'S MORE A TRAGEDY SUCH AS THIS NATURALLY RAISES THE PROFILE OF THE STATE'S CHIEF EXECUTIVE MR WILSON HAS GOTTEN LOTS OF TV TIME COMMISERATING WITH VICTIMS AND DISPENSING DISASTER RELIEF ROY BEHR POLICY DIRECTOR FOR MS BROWN'S CAMPAIGN ACKNOWLEDGES THAT MAY PRODUCE SOME SHORTTERM BOOST FOR GOV WILSON AS VOTERS RALLY AROUND THE STATE'S LEADER BUT MR BEHR AND OTHER DEMOCRATS ALSO MAINTAIN THAT SUCH A BOOST IS LIKELY TO BE SHORTLIVED BECAUSE WHAT THEY CALL MR WILSON'S BLAND PERSONAL STYLE ISN'T WELLSUITED TO THE TASK OF LIFTING CALIFORNIANS' SPIRITS IN THE LONG RUN MR WILSON'S SUCCESS MAY WELL TURN MOST ON HIS ABILITY TO GET WASHINGTON TO OPEN ITS COFFERS WIDE TO EASE CALIFORNIANS' PAIN STRANGELY HE IS WELLPOSITIONED TO ACCOMPLISH THAT EVEN THOUGH PRESIDENT CLINTON MAY SOMEDAY FIND GOV WILSON A POLITICAL RIVAL THE PRESIDENT HAS EVERY REASON TO BE HELPFUL TO CALIFORNIA NOW BECAUSE THE STATE IS CENTRAL TO THE CLINTON ELECTORAL COALITION FOR HIS PART MR WILSON INSISTS HE'S ONLY INTERESTED IN WORKING THROUGH HIS LATEST PLAGUE SO THAT HE'LL FINALLY GET A CHANCE TO LEAD HIS PEOPLE INTO THE PROMISED LAND HAVING SEEN THIS STATE THROUGH HARD TIMES I HAVE IDEAS ABOUT WHAT WE CAN DO IN GOOD TIMES HE SAYS SEE RELATED ARTICLE POLITICS & POLICY WHILE NEW LOS ANGELES MAYOR HITS STRIDE DEALING WITH A CLEARCUT CRISIS WSJ JAN 28 1994 9401280029 940128 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SPANISH TRADE UNIONS HELD A ONEDAY GENERAL STRIKE DECLARED VICTORY AND CALLED FOR NEW TALKS ON GOVERNMENT JOBSECURITY AND VACATION CUTBACKS TO COMBAT A DEEP RECESSION AND 23 UNEMPLOYMENT RATE UNIONS CLAIMED 90 SUPPORT FOR THE NATIONWIDE WALKOUT BUT A BUSINESS GROUP PUT IT AT JUST 30 THE PROTEST FOLLOWED THE BREAKDOWN LATE LAST YEAR OF NEGOTIATIONS BY GOVERNMENT BUSINESS AND UNIONS ON REFORMING SPAIN'S RIGID LABOR MARKET THE GOVERNMENT PROMPTLY TABLED LABOR REFORMS MAKING LAYOFFS EASIER AND ALLOWING HIRING OF APPRENTICES AT LESS THAN THE MINIMUM WAGE IN A BID TO WIDEN ACCESS TO JOBS UNIONS SAID THIS UNDERMINED WORKERS' RIGHTS AND JOB SECURITY THE GOVERNMENT HAS OFFERED TO CONSIDER SOME CHANGES BUT INSISTS THAT SPAIN'S ECONOMIC PROBLEMS BAR IT FROM RETREATING FROM THE LABOR MARKET OVERHAUL TAIWAN MIGHT MAKE SUBIC BAY IN THE PHILIPPINES ITS GATEWAY TO CHINA IF IT IS SHUT OUT OF HONG KONG WHEN THE BRITISH COLONY REVERTS TO CHINESE CONTROL IN 1997 AS TAIWAN AND CHINA DON'T OFFICIALLY RECOGNIZE EACH OTHER CONTACTS GO THROUGH OTHER COUNTRIES THE MAIN CONDUIT IS HONG KONG LINKED WITH TAIWAN BY 195 FLIGHTS A WEEK UNDER AN AVIATION PACT THAT EXPIRES NEXT YEAR AND THAT CHINA MIGHT OPPOSE RENEWING USING SUBIC BAY ALSO WOULD OFFER TAIWAN LESS EXPENSIVE LABOR INFRASTRUCTURE ON THE FORMER US NAVY BASE AND PROXIMITY TO CHINA OTHER POSSIBLE SITES INCLUDE BANGKOK HANOI MANILA SINGAPORE AND SEOUL AND PUSAN SOUTH KOREA CHINA DEMANDED THAT THE US DROP PLANS TO SET UP RADIO FREE ASIA THE REAL OBJECTIVE OF ESTABLISHING THIS STATION IS TO USE THE NEWS MEDIA TO INTERFERE IN THE INTERNAL AFFAIRS OF CHINA AND OTHER ASIAN COUNTRIES AND TO CREATE CONFUSION CHINA'S FOREIGN MINISTRY SAID PENDING US LEGISLATION WOULD CREATE RADIO FREE ASIA TO BEAM NEWS INFORMATION AND COMMENTARY TO BURMA CAMBODIA LAOS NORTH KOREA CHINA AND VIETNAM VIETNAMESEOWNED BANKS IN HANOI IN 1993 LENT 14 BILLION A NINEFOLD JUMP FROM 1992 ACCOUNTING FOR 58 OF ALL NEW CREDITS IN THE COUNTRY THE NUMBER OF PRIVATELY OWNED INDUSTRIAL FIRMS IN THE CAPITAL SOARED TO 244 FROM 100 PRIVATE BUSINESSES' SALES SURGED 80 TO 35 MILLION AND NEW INVESTMENT IN THE PRIVATE SECTOR TOTALED 49 MILLION MEANWHILE HIGHWAY SPECIALISTS AT A HANOI SEMINAR SAID VIETNAM NEEDS AT LEAST 20 BILLION TO REBUILD ITS 66000MILE ROAD SYSTEM HALF OF WHICH IS IN POOR CONDITION A SIXLANE EXPRESSWAY LINKING HANOI AND NOI BAI INTERNATIONAL AIRPORT IS TO OPEN NEXT MONTH REDUCING CONGESTION AND THE HOURLONG TRIP THE PACE OF EASTERN GERMAN WAGE ADJUSTMENT TO LEVELS IN THE WESTERN REGION SLOWED SIGNIFICANTLY LAST YEAR IN THE EFFORT TO REACH PARITY GRADUALLY IN THE REUNIFIED NATION IN 1992 MOST LABOR AGREEMENTS IN THE EAST RAISED PAY BETWEEN 15 AND 20 ABOUT DOUBLE THE 1993 INCREASES BETWEEN 9 AND 10 OVERALL LAST YEAR EASTERN GERMAN WAGES IN 1993 REPRESENTED 75 TO 85 OF THOSE IN THE WEST AS A WALKOUT BY MINERS IN ROMANIA EXPANDED TO INVOLVE 65000 PIT WORKERS AN ORGANIZER SAID THE STRIKE WOULD CONTINUE EVEN IF THE COUNTRY'S HIGHEST COURT ORDERED IT HALTED ABOUT 17000 MINERS LEFT THEIR JOBS THIS WEEK IN THE SOUTHERN CITY OF ROVINARI TO DEMAND A MONTH'S BACK PAY FROM THE CASHSTRAPPED GOVERNMENT THE PROTEST EXPANDED NATIONWIDE AS MINERS FROM FIVE OTHER COUNTIES JOINED IN THOUSANDS OF MINERS RALLIED IN THE CITIES OF ROVINARI AND TIRGU JIU THE EUROPEAN UNION IS PREPARING TO ISSUE A SWEEPING CHARTER OF RIGHTS FOR THE NINE MILLION PEOPLE WHO ARE LEGAL RESIDENTS BUT NOT CITIZENS OF EU MEMBER STATES THE POLICY PAPER ON IMMIGRATION AND ASYLUM EMPHASIZES ALLOWING SUCH LEGAL EU RESIDENTS CONCENTRATED IN GERMANY FRANCE AND BRITAIN TO WORK THROUGHOUT THE 12COUNTRY TRADE BLOC FORMERLY NAMED THE EUROPEAN COMMUNITY THIS COULD BE A HOT ISSUE AS THE EU UNEMPLOYMENT RATE IS ALMOST 11 THE PROPOSAL ALSO SEEKS TO EASE A LEGAL RESIDENT'S OBTAINING DUAL NATIONALITY OF THE EU HOST NATION AS WELL AS THE PERSON'S NATIVE COUNTRY IN AIMING TO INTEGRATE THESE LEGAL RESIDENTS FULLY INTO THE EU THE PLAN FOCUSES ON GREATER TRAINING AND EDUCATIONAL OPPORTUNITIES FOR THEM NEW LAWS IN MEMBER COUNTRIES TO GUARANTEE EQUAL RIGHTS AND STEPS TO COUNTER RACISM AND XENOPHOBIA THE CHARTER WHICH THE EU COMMISSION COULD ADOPT NEXT MONTH ALSO URGES STEPS TO ASSURE EU CITIZENS OF CONTROLS ON NEW IMMIGRATION INCLUDING SANCTIONS ON EMPLOYERS FOR HIRING ILLEGAL IMMIGRANTS AND ORGANIZED POLICIES ON REPATRIATION OF PEOPLE RESIDING ILLEGALLY IN THE EU TO SPUR PUBLIC DEMAND FOR AUTOS THAT ARE KINDER TO THE ENVIRONMENT EUROPEAN UNION TAX COMMISSIONER CHRISTIANE SCRIVENER SAID SHE WOULD PROPOSE BY YEAR END AN UNPRECEDENTED SYSTEM OF ROAD TAXES BASED ON CARS' POTENTIAL TO POLLUTE GERMANY AND THE NETHERLANDS SETTING UP A JOINT ARMY CORPS TO STRENGTHEN EUROPE'S POSTCOLD WAR DEFENSES AGREED TO USE ENGLISH AS THE COMMON LANGUAGE FOR THE 50000MEMBER FORCE IN AN EFFORT TO WARD OFF LINGUISTIC DISPUTES THAT MARRED THE START OF A FRANCOGERMAN CORPS 9401280028 940128 TELEDYNE SUSPENDS PAYOUT SETTLEMENT WITH US IS SEEN BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TELEDYNE INC SUSPENDED ITS CASH DIVIDEND FOR THE FIRST TIME EVER AMID GROWING SIGNS THAT THE COMPANY HAD REACHED A TENTATIVE SETTLEMENT OF LONGSTANDING CIVIL CLAIMS BY THE GOVERNMENT TOTALING WELL OVER 100 MILLION TELEDYNE'S TWOPARAGRAPH ANNOUNCEMENT WHICH CAME AFTER THE END OF TRADING IN NEW YORK MARKETS SAID THE BOARD TOOK THE DECISION YESTERDAY EVENING IN ORDER TO STRENGTHEN THE COMPANY'S FINANCIAL AND COMPETITIVE POSITION A SPOKESWOMAN DECLINED TO PROVIDE ANY FURTHER DETAILS BUT LAWYERS FAMILIAR WITH THE MATTER SAID THEY BELIEVED THAT THE COMPANY AND THE JUSTICE DEPARTMENT HAD HAMMERED OUT DETAILS OF A TENTATIVE SETTLEMENT OF PENDING CIVIL CLAIMS OF OVERCHARGES FRAUD AND IMPROPER TESTING INVOLVING SALES OF ELECTRONIC RELAYS AND OTHER HARDWARE TO THE PENTAGON DURING THE 1980S A FEDERAL JUDGE ACTING AS AN OFFICIAL INTERMEDIARY IN THE TALKS HAS ASKED BOTH SIDES NOT TO DISCUSS TENTATIVE SETTLEMENT TERMS ONE PERSON SAID SETTLEMENT DISCUSSIONS HAVE INVOLVED AMOUNTS RANGING FROM MORE THAN 30 MILLION TO AS MUCH AS 130 MILLION ACCORDING TO THESE LAWYERS NEITHER THE COMPANY NOR THE JUSTICE DEPARTMENT WOULD COMMENT THE GOVERNMENT AS PREVIOUSLY REPORTED HAS TAKEN OVER AT LEAST THREE FEDERAL SUITS FILED BY WHISTLEBLOWERS AGAINST TELEDYNE AND THE COMPANY HOPING TO RESOLVE ITS NAGGING LEGAL PROBLEMS HIRED A POLITICALLY SAVVY LOS ANGELES LAW FIRM MONTHS AGO TO HELP NEGOTIATE A COMPREHENSIVE SETTLEMENT OF SUCH CLAIMS SUSPENSION OF THE DIVIDEND WHICH WAS LAST PAID IN NOVEMBER AT A QUARTERLY RATE OF 20 CENTS COMES AS A SURPRISE EVEN TO SOME ANALYSTS WHO FOLLOW THE COMPANY CLOSELY LAST YEAR TELEDYNE'S DIVIDEND PAYMENTS AMOUNTED TO 443 MILLION IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY HAS SAID THAT ONE PENDING CIVIL ACTION ALONE SEEKS MORE THAN 90 MILLION IN DAMAGES STEMMING FROM WHISTLEBLOWER ALLEGATIONS THAT THE COMPANY DEFRAUDED THE PENTAGON BY KEEPING TWO SETS OF BOOKS ON VARIOUS FIXEDPRICE CONTRACTS ANOTHER SUIT AMONG OTHER THINGS SEEKS AT LEAST 416 MILLION IN DAMAGES FOR PROFITS ALLEGEDLY DERIVED FROM SALES OF IMPROPERLY INSPECTED PARTS COMPANY OFFICIALS HAVE INDICATED THAT THEY WANT TO RESOLVE THE CLAIMS BUT TELEDYNE'S SEC FILINGS CONSISTENTLY HAVE SAID THE COMPANY DIDN'T HAVE RELIABLE ESTIMATES OF POTENTIAL DAMAGES SINCE 1989 TELEDYNE HAS BEEN THE FOCUS OF EIGHT SEPARATE FEDERAL CRIMINAL INVESTIGATIONS AND AT LEAST AS MANY CIVIL INQUIRIES TELEDYNE HAS ADMITTED GUILT IN A NUMBER OF INSTANCES AND ALREADY HAS AGREED TO PAY AS MUCH AS 45 MILLION IN FINES PENALTIES AND CIVIL SETTLEMENTS IN CERTAIN INSTANCES THE COMPANY SIGNED PLEA AGREEMENTS TO SETTLE CRIMINAL ALLEGATIONS AS A WAY TO AVOID INDICTMENT AND TO REMAIN ELIGIBLE FOR NEW FEDERAL CONTRACTS BUT RESOLUTION OF RELATED CIVIL CLAIMS WAS LEFT FOR LATER NEGOTIATIONS OR LITIGATION 9401280027 940128 UAL REPORTS NARROWED LOSS BUYOUT GAINS IMPROVED QUARTERLY RESULTS COME AS TWO UNIONS BACK PLAN TO BUY STAKE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP POSTED A SUBSTANTIALLY NARROWER LOSS FOR THE FOURTH QUARTER AND SAID ITS TWO BIGGEST UNIONS APPROVED A PLAN FOR EMPLOYEES TO ACQUIRE A MAJORITY STAKE THE PARENT OF UNITED AIRLINES HAD A LOSS OF 64 MILLION OR 302 A SHARE AFTER A 25 MILLION CHARGE RELATED TO REORGANIZING ITS COMPUTER RESERVATIONS SYSTEM THAT COMPARES WITH A YEAREARLIER LOSS OF 224 MILLION OR 927 A SHARE INCLUDING A 16 MILLION RESTRUCTURING CHARGE ON AN OPERATING BASIS UAL SWUNG TO A 19 MILLION PROFIT FROM A 326 MILLION LOSS REVENUE ROSE 14 TO 364 BILLION FROM 32 BILLION BUT APPROVAL OF THE PROPOSED 5 BILLION EMPLOYEELED BUYOUT BY UNITED'S PILOTS AND MACHINISTS WAS LESS THAN THE STIRRING ENDORSEMENT EXPECTED BY LABOR LEADERS WHO NEGOTIATED THE DEAL ON THEIR BEHALF AMONG PILOTS WHO VOTED 73 FAVORED THE CONCESSIONSFOREQUITY TRANSACTION BUT FULLY 1972 OF UNITED'S 8200 PILOTS OPPOSED THE MEASURE IN STRAW POLLS MEANWHILE MACHINISTS UNION MEMBERS NARROWLY RATIFIED THE PLAN WITH ONLY 56 VOTING IN FAVOR UNDER THE PROPOSAL THE PILOTS AND MACHINISTS UNIONS AND THOUSANDS OF NONCONTRACT EMPLOYEES WOULD EXCHANGE WAGE AND WORKRULE CONCESSIONS FOR AN INITIAL 53 STAKE IN UAL THE PLAN ALSO WOULD PERMIT UNITED TO SET UP A SEPARATE LOWFARE SHORTROUTE CARRIER WITH LOWER LABOR COSTS MAKING IT A STRONGER COMPETITOR TO NOFRILLS SOUTHWEST AIRLINES AND UPSTART CARRIERS THE VOTE SHOWS THAT RANKANDFILE WORKERS AND UNION LEADERS DIFFER SHARPLY IN THEIR EXPECTATIONS FOR THE AIRLINE INDUSTRY'S RECOVERY THE BROAD OPPOSITION ALSO HIGHLIGHTS HOW DIFFICULT IT WAS TO MELD DIVERSE EMPLOYEE INTERESTS INTO A SINGLE PALATABLE PACKAGE THE FINANCIAL IMPROVEMENT UAL ENJOYED LAST YEAR CAPPED BY YESTERDAY'S RESULTS FUELED EMPLOYEE SKEPTICISM ABOUT THE NEED FOR SIZABLE PAY CUTS AND WORKRULE CHANGES UAL HAD REPEATEDLY INDICATED THAT IF THE UNIONS DIDN'T FIND SOME WAY TO SLASH LABOR COSTS IT WOULD HAVE TO CONTRACT OUT MAINTENANCE WORK AND FLIGHT OPERATIONS THREATENING THOUSANDS OF JOBS WITH UAL'S MOMENTUM GAINING LAST YEAR IT BECAME HARDER FOR SOME WORKERS TO STOMACH THE KINDS OF DEEP WAGE CONCESSIONS PROPOSED IN THE CASE OF MACHINISTS FOR EXAMPLE A MECHANIC EARNING 2189 AN HOUR WOULD SEE HIS HOURLY WAGES FALL TO 1977 FOR NEARLY SIX YEARS SAID LEN CIPRESSI A UNITED MECHANIC IN LOS ANGELES WHO OPPOSED THE BUYOUT I'M REALLY SKEPTICAL THAT THEY WOULD CONTRACT OUT OUR JOBS A NUMBER OF PEOPLE SEEMED TO THINK A BLUFF WAS GOING ON ACKNOWLEDGED DAVE MITCHELL SECRETARY AND TREASURER OF UNITED'S MACHINISTS UNION BUT HE NOTED THAT THE MAJORITY DIDN'T THINK SO THE ALTERNATIVE WOULD HAVE REDUCED THOUSANDS OF JOBS SOME OLDER PILOTS OPPOSED THE DEAL BECAUSE OF THE PLANNED REDUCTION IN COMPANY PENSION CONTRIBUTIONS SAID PILOTS UNION ADVISERS MOREOVER SOME PILOTS FEARED THEY WOULD ENTER RETIREMENT HOLDING NEW UAL STOCK THAT COULD TAKE SOME TIME TO APPRECIATE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY UAL SHARES ROSE 75 CENTS TO 14575 UAL MANAGEMENT AND UNION NEGOTIATORS HAVE SPENT THE PAST COUPLE OF WEEKS HAMMERING OUT DETAILS OF A DEFINITIVE AGREEMENT UAL FACES THE TASK OF SELLING THE TRANSACTION TO SHAREHOLDERS WHO SO FAR HAVE SEEMED LUKEWARM TOWARD THE DEAL SHAREHOLDERS ARE EXPECTED TO VOTE THIS SPRING UNITED SAID ITS FOURTHQUARTER TRAFFIC ROSE A HEALTHY 84 WITH THE CARRIER GAINING PASSENGERS AS A RESULT OF THE STRIKE BY AMERICAN AIRLINES FLIGHT ATTENDANTS IN NOVEMBER ALSO UNITED'S YIELD OR REVENUE PER SEAT GREW 32 PARTLY REFLECTING HIGHER TICKET PRICES IN A STATEMENT UAL CHAIRMAN STEPHEN M WOLF CALLED THE FOURTHQUARTER AND 1993 RESULTS A VAST IMPROVEMENT BUT SAID THEY STILL WERE UNACCEPTABLE HE SAID UNITED HAD SEVERE LOSSES ON ITS SHORT DOMESTIC ROUTES AND THE PROPOSED BUYOUT OFFERS PROVISIONS TO FIX THAT PROBLEM 9401280026 940128 SEAGULL ENERGY BUDGET TO JUMP HOUSTON SEAGULL ENERGY CORP SAID ITS 1994 CAPITAL BUDGET WILL JUMP 54 TO 173 MILLION FROM 112 MILLION IN EXPENDITURES FOR 1993 SEAGULL AN OIL AND NATURALGAS COMPANY SAID BOTH NUMBERS EXCLUDE PROPERTY ACQUISITIONS THE COMPANY SAID IT WILL INCREASE SPENDING FOR EXPLOITATION TO 100 MILLION FROM 64 MILLION FOR EXPLORATION TO 50 MILLION FROM 26 MILLION FOR LEASE ACQUISITION TO 10 MILLION FROM 8 MILLION AND FOR CORPORATE EXPENDITURES TO 3 MILLION FROM 2 MILLION SPENDING FOR ITS ALASKAN GAS UTILITY AND ITS SOUTHWESTERN US GASPIPELINE AND GATHERING SYSTEMS WILL DROP TO 10 MILLION FROM 12 MILLION IN 1993 9401280025 940128 DELTA AIR HAS NARROWER QUARTERLY LOSS AMERICA WEST SHOWS A PROFIT AMID CUTS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES REPORTED A NARROWER LOSS AND AMERICA WEST AIRLINES A PROFIT FOR THE DECEMBER QUARTER RESULTS SHOWING THAT STEEP CUTBACKS ARE BEGINNING TO HELP BOTH CARRIERS ATLANTABASED DELTA REPORTED A LOSS OF 141 MILLION OR 336 A SHARE FOR ITS FISCAL SECOND QUARTER INCLUDED IN THE QUARTER WAS A ONETIME PRETAX CHARGE OF 1123 MILLION FOR THE EARLY RETIREMENT OF NEARLY 1500 WORKERS IN NOVEMBER WITHOUT THAT CHARGE DELTA'S LOSS WOULD HAVE BEEN 714 MILLION THE LOSS WHILE STILL SUBSTANTIAL IS AN IMPROVEMENT FOR DELTA WHICH A YEAR AGO POSTED A LOSS OF 1444 MILLION OR 346 A SHARE SINCE THEN DELTA HAS SLASHED ITS DIVIDEND REDUCED ITS STAFF CUT CAPITAL SPENDING FURTHER AND DEFERRED MORE AIRCRAFT DELIVERIES IT ALSO WITHDREW FROM SOME UNPROFITABLE SHORTHAUL FLIGHTS REVENUE FOR THE QUARTER INCREASED 5 TO 302 BILLION FROM 287 BILLION EVEN WITH ALL THAT ACTION HOWEVER DELTA STILL HAD AN OPERATING LOSS OF 1801 MILLION WHILE MANY OF ITS AIRLINE RIVALS HAD NARROW OPERATING PROFITS DELTA'S EUROPEAN ROUTES BOUGHT FROM PAN AM CORP IN 1991 ARE STILL A FINANCIAL DRAIN ON THE COMPANY AND THE AIRLINE SAID THE PERCENTAGE OF SEATS IT MUST FILL TO BREAK EVEN ROSE TO 6724 FROM 6426 THE COMPANY HINTED THAT MORE COST CUTTING MAY BE COMING NO ONE AT DELTA IS SATISFIED WITH THESE RESULTS AND WE ARE COMMITTED TO IMPROVING OUR FINANCIAL PERFORMANCE SAID DELTA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD W ALLEN IN THE FIRST HALF DELTA HAD A LOSS OF 807 MILLION OR 271 A SHARE ON REVENUE OF 623 BILLION IN THE YEARAGO PERIOD DELTA HAD A LOSS OF 8567 MILLION OR 1834 A SHARE ON REVENUE OF 594 BILLION THE YEARAGO RESULTS INCLUDE A 5871 MILLION LOSS FROM AN ACCOUNTING CHANGE DELTA SHARES CLOSED YESTERDAY AT 54375 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICA WEST PHOENIX REPORTED NET INCOME OF 104 MILLION OR 39 CENTS A SHARE ON REVENUE OF 3393 MILLION THAT'S A BIG IMPROVEMENT FOR THE CARRIER WHICH HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION FOR NEARLY THREE YEARS AND WHICH CLAWED ITS WAY BACK TO PROFITABILITY IN 1993 AMERICA WEST HAS RECEIVED A PROPOSAL FOR A 250 MILLION INVESTMENT FROM STEINHARDT GROUP AND HAS SAID THAT OTHER INVESTORS ARE CONSIDERING BIDS THE DEADLINE FOR THOSE PROPOSALS IS FEB 10 IN THE YEARAGO QUARTER AMERICA WEST HAD A NET LOSS OF 176 MILLION OR 75 CENTS A SHARE ON REVENUE OF 3019 MILLION FOR THE YEAR NET INCOME WAS 372 MILLION OR 147 A SHARE ON REVENUE OF 131 BILLION IN 1992 THE AIRLINE HAD A NET LOSS OF 1317 MILLION OR 558 A SHARE ON REVENUE OF 129 BILLION 9401280023 940128 REPUBLIC NEW YORK SAYS GREEN POINT BID COULD BE SWEETENED NEW YORK REPUBLIC NEW YORK CORP IS WILLING TO PAY DEPOSITORS OF GREEN POINT SAVINGS BANK EVEN MORE THAN ITS PREVIOUS OFFER IF STATE REGULATORS CLARIFIED THE BIDDING RULES GREEN POINT IS IN A BATTLE TO CONVERT FROM A MUTUALLY HELD TO STOCKHOLDEROWNED COMPANY RAISING OVER 750 MILLION IN EQUITY IN THE PROCESS AFTER STRIPPING GREEN POINT OF SWEETHEART COMPENSATION FOR INSIDERS THE NEW YORK STATE BANKING DEPARTMENT THIS WEEK APPROVED GREEN POINT'S CONVERSION PLANS AND ISSUED IT A NEW CHARTER BUT ON WEDNESDAY A FEDERAL JUDGE ISSUED A TEMPORARY RESTRAINING ORDER AGAINST THE CONVERSION AT THE REQUEST OF CERTAIN DEPOSITORS WHO FILED SUIT CHALLENGING THE CONVERSION YESTERDAY GREEN POINT APPEALED THE RESTRAINING ORDER AND A HEARING WAS SET FOR TODAY STATE REGULATORS REBUFFED REPUBLIC'S OFFER TO PURCHASE GREEN POINT THROUGH A 250 MILLION OFFER TO DEPOSITORS CALLING THE OFFER ILLEGAL AND IMPERMISSIBLE BUT PEOPLE CLOSE TO REPUBLIC SAY REGULATORS NEVER CITED SPECIFIC STATUTES NOW REPUBLIC IS UNDERSTOOD TO BE CONSIDERING SWEETENING ITS OFFER IF IT CAN OBTAIN CLARIFICATION FROM STATE REGULATORS A SPOKESWOMAN FOR NEW YORK STATE BANKING DEPARTMENT DID NOT RETURN CALLS A SPOKESMAN FOR REPUBLIC DECLINED COMMENT A SPOKESMAN FOR GREEN POINT SAID THE BROOKLYNBASED SAVINGS BANK INTENDS TO REMAIN INDEPENDENT IF THE RESTRAINING ORDER ISN'T LIFTED BY TODAY GREEN POINT UNDER A PREVIOUS DEADLINE WOULD BE FORCED TO GIVE SUBSCRIBERS OF ITS SHARES AN OPPORTUNITY TO MODIFY OR RESCIND THEIR COMMITMENTS THAT COULD FURTHER DELAY THE CONVERSION IF A SIGNIFICANT NUMBER OF DEPOSITORS WITHDRAW THEIR APPLICATIONS TO PURCHASE STOCK 9401280022 940128 ESYSTEMS' KEIFFER STEPS DOWN AS CEO LAWSON ASSUMES POST DALLAS ESYSTEMS INC SAID E GENE KEIFFER STEPPED DOWN AS CHIEF EXECUTIVE OFFICER AND INTENDS TO RETIRE IN AUGUST AS CHAIRMAN THE DEFENSEELECTRONICS CONCERN NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER A LOWELL LAWSON TO SUCCEED MR KEIFFER AS CEO THE COMPANY SAID MR LAWSON 56 YEARS OLD IS ALSO EXPECTED TO SUCCEED MR KEIFFER AS CHAIRMAN MR KEIFFER 64 IS TO REMAIN ON THE BOARD AFTER HIS RETIREMENT AS CHAIRMAN INDUSTRY ANALYSTS SAID MR KEIFFER'S DEPARTURE AS CHIEF EXECUTIVE WASN'T UNEXPECTED AND THEY GENERALLY PRAISED THE COMPANY'S MOVES THE BIGGEST POSITIVE IS THE NICE CONTINUITY SAID HOWARD RUBEL AN ANALYST AT GOLDMAN SACHS & CO IN A NEWS RELEASE MR KEIFFER SAID THE MANAGEMENT CHANGES WERE DESIGNED TO FACILITATE AN ORDERLY TRANSITION AND STREAMLINE MANAGEMENT AT A TIME WHEN THE DEFENSE CONTRACTOR IS SEEKING TO EXPAND INTO LINES OF BUSINESS UNRELATED TO DEFENSE SEPARATELY ESYSTEMS YESTERDAY REPORTED FOURTHQUARTER NET INCOME OF 319 MILLION OR 93 CENTS A SHARE UP 9 FROM 293 MILLION OR 88 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD PROJECTED EARNINGS OF BETWEEN 94 CENTS AND 99 CENTS A SHARE REVENUE FELL 56 TO 5236 MILLION FROM 5549 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THURSDAY ESYSTEMS SHARES CLOSED AT 44625 DOWN 875 CENTS 9401280021 940128 THE AMERICAS A SUPPLYSIDE JUMP START FOR BRAZIL'S STALLED ECONOMY BY NICOLE SIERRA SAO PAULO MIGUEL TAVAO IS A 52YEAROLD CHAUFFEUR WHO WORKS FOUR DAYS A WEEK FOR A WEALTHY FAMILY IN RIO HE USED TO TAKE THE BUS TO WORK BECAUSE HE COULD NEVER SAVE ENOUGH TO BUY A CAR OF HIS OWN AND FINANCING TERMS WERE PROHIBITIVE TWO YEARS AGO HE HAD HIS EYE ON A VOLKSWAGEN GOL THAT RETAILED FOR 9917 LAST OCTOBER IN TIME FOR HIS WEDDING ANNIVERSARY HE WENT BACK TO THE DEALER I COULDN'T BELIEVE IT THE PRICE HAD COME DOWN TO 7198 SAYS MR TAVAO SHE WAS MINE IN SAO PAULO STOCKBROKER RAUL RIBEIRO JUST PURCHASED A FIAT BUT HE PLANS TO LEAVE IT AT THE DEALERSHIP AS A HEDGE AGAINST INFLATION I ALREADY HAVE TWO CARS BUT I DID WELL THIS YEAR AND I THINK IT'S A GOOD PLACE TO PARK MY MONEY WITH INFLATION CREEPING UP YOU DON'T KNOW WHAT MIGHT HAPPEN IN A HEMISPHERE DOMINATED BY RAPID ECONOMIC REFORM BRAZIL IS STILL OSTRACIZED AS THE ODD MAN OUT AMONG LATIN AMERICA'S GOLDEN BOYS INSATIABLE INFLATION STILL FEEDS VORACIOUSLY ON THE UNBALANCED BUDGET AND BADLY NEEDED CONSTITUTIONAL REFORM IS POSTPONED AS A NEW CORRUPTION SCANDAL ENVELOPS KEY LEGISLATORS BUT LAST YEAR WHILE POLITICIANS WERE BICKERING JOCKEYING AND FINGERPOINTING THE GROSS DOMESTIC PRODUCT GREW 4 BEHIND THEIR BACKS INDUSTRIAL PRODUCTION WAS UP 93 AND MR RIBEIRO AND MR TAVAO BOUGHT NEW CARS IN FACT THE PERFORMANCE OF THE AUTO AND AUTOPARTS SECTOR WHICH ACCOUNTS FOR 10 OF GDP IS GIVEN CREDIT FOR A GOOD ONETHIRD OF THIS GROWTH VEHICLE PRODUCTION SURGED 43 IN ONE YEAR RECORD CAR SALES BROUGHT THE INDUSTRY FROM THE DOLDRUMS TO ITS GREATEST PERFORMANCE SINCE 1957 THIS INCREASE WAS SPURRED MAINLY BY THE SALE OF POPULAR LOWEND CARS WHICH BECAME MORE AFFORDABLE AS THEIR PRICES DROPPED MORE THAN 30 ON AVERAGE FROM THE PREVIOUS YEAR A PRINCIPAL REASON FOR THE PRICE CUT AND THE SUBSEQUENT REVIVAL OF THE CAR INDUSTRY WAS THE GOVERNMENT'S DECISION TO SIGNIFICANTLY REDUCE BRAZIL'S EXORBITANT AUTOMOTIVE TAX RATES A LABYRINTH OF TAXES FROM MANUFACTURER TO DEALER QUALIFIES BRAZIL AS THE WORLD'S MOST HIGHLY TAXED AUTOMOTIVE INDUSTRY FOR YEARS THESE TAXES WERE PASSED ON TO THE CONSUMER IN HIGHER COSTS BY THE EARLY 1990S BRAZILIAN CARS WERE SELLING FOR 30 MORE THAN CARS IN THE US AND COMPANIES FOUND THAT ONLY LUXURY CARS WERE WORTH PRODUCING SALES PLUMMETED ONCEPOWERFUL AUTO MAKERS WERE BROUGHT TO THEIR KNEES AND UNHAPPY UNIONS THREATENED NEW ROUNDS OF STRIKES IN MARCH 1992 ON THE BRINK OF DISASTER ALL THE RELEVANT PARTIES CALLED FOR A CRISIS CONVENTION IN A NEGOTIATION PROCESS THAT DETROIT EXECUTIVES WOULD FIND DIZZYING 28 BRAWLING SELFSERVING FACTIONS OF THE UNIONS THE AUTOMOTIVE INDUSTRY AND VARIOUS GOVERNMENT MINISTRIES HAMMERED OUT AN AGREEMENT OVER 50 CLAUSES WERE AGREED TO BUT THE KEY MEASURE WAS A 6 CUT IN TAX RATES FOLLOWED BY FURTHER CUTS LAST FEBRUARY IN EXCHANGE FOR THE TAX CUTS AUTO MAKERS AGREED TO CUT PRICES THEY ALSO AGREED TO INVEST HEAVILY IN THE SECTOR TO PRESERVE EMPLOYMENT AND TO INCREASE REAL WAGES BY 20 OVER THREE YEARS THE UNION PROMISED TO INCREASE PRODUCTIVITY AND TO REFRAIN FROM STRIKING THE INK HADN'T DRIED WHEN CRITICISM OF THE ACCORD POURED IN FROM ALL PARTS OF THE IDEOLOGICAL SPECTRUM THE TAX BREAK WAS THE MAIN LIGHTNING ROD FOR CONTROVERSY AND DISSENSION THE NATIONALIST LEFT ACCUSED THE PACT OF FAVORING CAR COMPANIES ALL OF WHICH ARE FOREIGN MULTINATIONALS WITH SUPPOSEDLY DEEP POCKETS GIVING THEM PREFERENTIAL TREATMENT OVER OTHER MORE NEEDY SECTORS BRAZILIAN TAX AUTHORITIES MADE DIRE PREDICTIONS THAT TAX RECEIPTS WOULD FALL DRAMATICALLY WITH THE LOWER RATES AND INCREASE THE DEFICIT FREEMARKETEERS ARGUED THAT THE ACCORD INVOLVED TOO MUCH GOVERNMENT INTERVENTION AND THAT COMPANIES SHOULD BE LEFT TO FIND THEIR OWN WAY NOW A YEAR DOWN THE ROAD THE PRELIMINARY RESULTS FROM THE ACCORD SHOW BENEFICIARIES ACROSS THE BOARD NOT THE LEAST OF WHOM ARE THE OFTFORGOTTEN BRAZILIAN CONSUMERS THE 10 TO 45 PRICE REDUCTIONS ON POPULAR CARS HELPED BOOST UNIT SALES 30 TO 105 MILLION VEHICLES LAST YEAR PRODUCTIVITY HAS RISEN TO 28 CARS FROM 19 CARS AN HOUR SALARIES HAVE INCREASED 34 IN TWO YEARS AND AUTO MAKERS HAVE ADDED 8000 NEW EMPLOYEES TWICE AS MANY AS EXPECTED THE COMPANIES WHICH HAD AGREED TO INVEST 1 BILLION ALREADY HAVE INVESTED ONETHIRD MORE WE INVESTED IN NEW TECHNOLOGY AND MANAGEMENT SYSTEMS FOR THE FIRST TIME IN YEARS SAYS CELSO VARGAS PRESIDENT OF FREIOS VARGAS AN AUTOPARTS COMPANY FROM A POLICY STANDPOINT THE MOST IMPORTANT RESULT IS TO BE FOUND IN THE EFFECT OF THE TAX CUTS WHILE COMBINED TAX RATES ON THE SECTOR HAVE FALLEN TO 33 THIS YEAR FROM 43 IN 1991 STATE AND FEDERAL TAX REVENUES FROM THE INDUSTRY HAVE INCREASED 17 SINCE MARCH 1992 THUS THE FEAR OF LOST REVENUES HAS PROVED UNJUSTIFIED AND FURTHER TAX REDUCTIONS WOULD LIKELY YIELD EVEN MORE DRAMATIC RESULTS EVEN AT THE CURRENT LEVEL BRAZILIAN AUTOMOTIVE TAXES ARE STILL THE HIGHEST AND MOST COMPLEX IN THE WORLD WHILE TAX REDUCTION PLAYED A LARGE ROLE IN REVIVING THE AUTO INDUSTRY ANOTHER IMPORTANT STIMULUS TO INCREASED EFFICIENCY AND LOWER PRICES WAS THE HUGE INFLUX OF IMPORTS THAT RESULTED FROM A NEW TRADE POLICY IMPORT TARIFFS ON CARS BEGAN TO DROP TO 35 WHERE THEY STAND TODAY FROM SUPERPROTECTIONIST LEVELS OF 80 THE JAPANESE IMPORTS CERTAINLY MOTIVATED US TO STEP UP OUR INVESTMENTS IN ORDER TO LAUNCH NEW PRODUCTS AT THE LOW AND MID END OF THE MARKET SAYS MIGUEL JORGE VICE PRESIDENT OF CORPORATE AFFAIRS AT AUTOLATINA THE JOINT VENTURE BETWEEN FORD AND VOLKSWAGEN HOWEVER THE OVERALL CONDITIONS WERE ALSO CONDUCIVE TO INVESTMENT IT WAS PRECISELY THE COMBINATION OF TAX BREAK AND MARKET OPENING THAT PROVIDED THE HEALTHY BALANCE OF CARROT AND STICK THAT REVIVED THE AUTO INDUSTRY AS FOR THE GOVERNMENT IT INTENDS TO GRADUALLY PULL OUT OF THE ACCORD AND TO LET MARKET FORCES TAKE OVER WHILE CONTINUING TO BRING DOWN IMPORT BARRIERS ACCORDING TO ANTONIO MACIEL NETO FORMER VICE MINISTER OF INDUSTRY UNCERTAINTY CLOUDS THE ECONOMIC LANDSCAPE FOR 1994 AS ELECTIONYEAR POLITICS START TO KICK IN THERE IS NOT EVEN ASSURANCE THAT THE AUTOMOTIVE ACCORD WILL REMAIN IN EFFECT SEVERAL STATE GOVERNMENTS HAVE LAUNCHED AN ATTACK TO REINSTATE THE HIGHER TAXES AND WILL NOT YET ACKNOWLEDGE THAT THEY HAVE ACTUALLY GAINED REVENUE FROM LOWER RATES NEVERTHELESS THE SUCCESS OF THE AUTO MAKERS' INITIATIVE DURING THE MOST TROUBLED PERIOD IN RECENT BRAZILIAN ECONOMIC HISTORY STANDS OUT AS A PROTOTYPE FOR OTHER BUSINESS SECTORS AND HAS BEEN AN EFFECTIVE TOURNIQUET RATHER THAN A BANDAID FOR BRAZIL'S ECONOMIC WOUNDS MS SIERRA IS DIRECTOR OF PROGRAM DEVELOPMENT FOR THE COUNCIL OF THE AMERICAS 9401280020 940128 THURSDAY'S MARKETS DOW GAINS 1830 POINTS TO A RECORD BONDS SOAR AS YIELD DECLINES TO 626 THE DOLLAR WEAKENS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ROLLED TO HIGHS AS INTEREST RATES FELL BOND PRICES SOARED AND THE DOLLAR FELL SMASHING THROUGH THE RECORD SET JAN 21 THE DOW JONES INDUSTRIAL AVERAGE GAINED 1830 POINTS TO 392630 STANDARD & POOR'S 500STOCK INDEX JUMPED 385 TO 47705 ALSO A HIGH AND THE NASDAQ COMPOSITE INDEX ROSE 408 TO 79288 STOCK ANALYSTS SAID NEWS OF A SHARP DROP IN JOBLESS CLAIMS AND A HEALTHY GAIN IN DURABLE GOODS ORDERS IN DECEMBER HELPED TO SET THE STAGE FOR A RALLY IN ECONOMICALLY SENSITIVE STOCKS BUT THE REAL TRIGGER FOR THE ADVANCE WAS FALLING INTEREST RATES YESTERDAY THE YIELD ON THE TREASURY'S 30YEAR BOND SLIPPED TO 626 FROM 630 AND GOLD PRICES CONSIDERED BY MANY TO BE A HEDGE AGAINST INFLATION FELL SHARPLY MORE IMPORTANTLY THE DOW JONES UTILITY AVERAGE SEEN BY SOME AS A LEADING INDICATOR OF INTEREST RATES ROSE FOR THE SECOND STRAIGHT DAY THE INDEX OF 15 BLUECHIP STOCKS SURGED 415 POINTS TO 22561 ITS BIGGEST SINGLEDAY GAIN IN THREE YEARS THE FACT THAT UTILITIES HAVE REBOUNDED HAS MADE PEOPLE FEEL BETTER THE FACT THAT THE FINANCIAL STOCKS HAVE COME BACK HAS MADE PEOPLE FEEL BETTER AND THE FACT THAT THE S&P IS KEEPING PACE WITH THE DOW'S ADVANCE IS ENCOURAGING TO INVESTORS SAID STEVEN EINHORN STOCK STRATEGIST AT GOLDMAN SACHS MEANWHILE WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS SAID HE WAS HEARTENED TO SEE THAT YESTERDAY'S ADVANCE WAS BROADBASED CYCLICALS WERE UP FINANCIALS DID WELL AND EVEN SOME GROWTH STOCKS LIKE PEPSICO HAD A GOOD DAY HE SAID WORLDWIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADDED 101 TO 11545 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 3463 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1392 ISSUES ROSE AND 784 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE ADDED 5/8 POINT OR 625 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17295 MARKS AND 10855 YEN COMPARED WITH 17450 MARKS AND 11005 YEN WEDNESDAY 9401280019 940128 TECHNOLOGY LAWMAKER TO HELP UTILITIES TO COMPETE IN COMMUNICATIONS WASHINGTON A KEY LAWMAKER ON TELECOMMUNICATIONS ISSUES SAID HE'LL TRY TO FREE UTILITY COMPANIES TO COMPETE MORE EASILY WITH TELEPHONE COMPANIES AND CABLE OPERATORS AT A HOUSE SUBCOMMITTEE HEARING REP RICK BOUCHER D VA SAID HE'LL TRY TO AMEND A BILL HE SPONSORED WITH REP EDWARD MARKEY D MASS THAT WOULD ELIMINATE SOME BARRIERS TO COMPETITION FOR TELEPHONE AND VIDEO SERVICE IN ITS CURRENT FORM THE BILL WOULD PERMIT SOME UTILITIES TO COMPETE IN THOSE MARKETS BUT OTHERS THAT OPERATE AS PART OF MULTISTATE UTILITYHOLDING COMPANIES WOULD REMAIN RESTRICTED UNDER PROVISIONS OF THE PUBLIC UTILITIES HOLDING COMPANY ACT MR BOUCHER'S AMENDMENT WOULD REMOVE THOSE RESTRICTIONS WHICH AFFECT UTILITIES SERVICING 30 OF AMERICANS THE MOVE COMES AS ADMINISTRATION OFFICIALS ARE INCREASINGLY CITING ELECTRIC UTILITIES AS A POTENTIAL NEW SOURCE OF COMPETITION TO CABLE AND PHONE COMPANIES MANY OF WHICH ARE JOINING FORCES UTILITIES OFTEN INSTALL FIBEROPTIC LINES ALONG WITH THEIR POWER LINES FOR THEIR OWN INTERNAL COMMUNICATIONS AND LEASE SOME OF THE LINES TO TELEPHONE COMPANIES UNDER THE CLINTON ADMINISTRATION'S TELECOMMUNICATIONS PROPOSALS DETAILED IN A WHITE PAPER RELEASED YESTERDAY UTILITIES AND OTHER NEW TELECOMMUNICATIONS PROVIDERS COULD BE PROTECTED FROM STATE AND LOCAL RATE REGULATION THE STATES COULD PETITION THE FEDERAL COMMUNICATIONS COMMISSION TO REGAIN CONTROL OVER THE RATES WHILE SOME LARGE UTILITIES ARE PUSHING TO PROVIDE TELECOMMUNICATIONS SERVICES DIRECTLY TO CUSTOMERS OTHERS SIMPLY WANT TO PROTECT THEIR LEASE ARRANGEMENTS FROM REGULATION SAID CHARLES MEEHAN EXECUTIVE DIRECTOR OF THE UTILITIES TELECOMMUNICATIONS COUNCIL 9401280017 940128 BUSINESS BRIEF GREAT WESTERN POSTS A NARROWER DEFICIT FOR FOURTH QUARTER CHATSWORTH CALIF GREAT WESTERN FINANCIAL CORP POSTED A NARROWER FOURTHQUARTER LOSS ITS SECOND CONSECUTIVE QUARTERLY DEFICIT AS IT CONTINUES TO DISPOSE OF PROBLEM ASSETS AND SLASH OVERHEAD THE FOURTHQUARTER NET LOSS AT THE NATION'S SECONDLARGEST THRIFT SHRANK TO 182 MILLION OR 19 CENTS A SHARE FROM 973 MILLION OR 80 CENTS A SHARE A YEAR EARLIER THE RESULTS INCLUDE LOANLOSS PROVISIONS OF 149 MILLION AND CHARGES OF 30 MILLION FOR A RESTRUCTURING IN WHICH 500 PEOPLE OR ABOUT 14 OF ITS HEADQUARTERS STAFF WILL BE LAID OFF THE COMPANY SAID ANALYSTS HAD EXPECTED THE COMPANY TO EARN 29 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK CLOSED AT 1925 UP 375 CENTS APPARENTLY ON SPECULATION THAT THE COMPANY WAS PUTTING ITS PROBLEMS BEHIND IT IN 1993 GREAT WESTERN SOLD SOME 16 BILLION IN DISTRESSED PROPERTY AND LOANS WHICH HELPED REDUCE NONPERFORMING ASSETS TO 113 BILLION OR 29 OF ASSETS FROM 201 BILLION OR 512 OF ASSETS AT THE END OF 1992 THAT PURGE WHICH SOME ANALYSTS SAID WAS OVERDUE STILL LEAVES THE THRIFT HOLDING MORE BAD ASSETS THAN ITS PEERS AT HF AHMANSON & CO ITS LARGER CROSSTOWN RIVAL PROBLEM ASSETS ARE 208 OF TOTAL ASSETS AT GOLDEN WEST FINANCIAL CORP WIDELY CONSIDERED THE NATION'S BESTRUN THRIFT THE LEVEL IS 15 THE EXPECTED LAYOFFS WHICH ARISE FROM A COSTCUTTING DRIVE ANNOUNCED LAST AUGUST ARE PRIMARILY IN ADMINISTRATIVE FUNCTIONS NO FURTHER LAYOFFS ARE PLANNED THE SPOKESMAN SAID 9401280016 940128 MARKETING & MEDIA HEARST NAMES GALOTTI TO NEW ESQUIRE POST NEW YORK HEARST CORP'S MAGAZINE DIVISION SAID IT NAMED RONALD A GALOTTI FORMER PUBLISHER OF VANITY FAIR TO THE NEW POST OF PUBLISHING DIRECTOR OF ESQUIRE AND ESQUIRE GENTLEMAN MR GALOTTI 44 YEARS OLD LEFT VANITY FAIR IN MAY ALTHOUGH THE MAGAZINE'S PUBLISHER ADVANCE PUBLICATIONS INC'S CONDE NAST UNIT SAID HE RESIGNED TO PURSUE OTHER INTERESTS COMPANY INSIDERS SAID HE WAS FORCED OUT AFTER CLASHING WITH TOP EXECUTIVES AT CONDE NAST HEARST SAID MR GALOTTI WILL OVERSEE ALL ASPECTS OF THE ADVERTISING SALES EFFORTS MARKETING AND POSITIONING OF ESQUIRE AND ESQUIRE GENTLEMAN HEARST SAID ALAN STILES WILL REMAIN AS PUBLISHER OF BOTH ESQUIRE AND ESQUIRE GENTLEMAN BUT DIDN'T ELABORATE ON HOW THEIR ROLES WILL DIFFER OTHER THAN TO SAY MR GALOTTI WILL FOCUS ON THE RELAUNCH OF ESQUIRE UNDER ITS NEW EDITOR EDWARD KOSNER ESQUIRE HAS ENDURED CONSIDERABLE TURMOIL RECENTLY HAVING ABRUPTLY REPLACED MR KOSNER'S PREDECESSOR TERRY MCDONELL IN SEPTEMBER MR KOSNER LONGTIME EDITOR OF NEW YORK MAGAZINE WAS BROUGHT IN TO REVIVE ESQUIRE WHICH HAS BEEN LOSING GROUND TO HIPPER COMPETITIORS SUCH AS CONDE NAST'S GQ PUBLISHERS INFORMATION BUREAU REPORTED A NEARLY 13 DROP IN ADVERTISING PAGES AT ESQUIRE FOR 1993 ESQUIRE GENTLEMAN IS A STANDALONE MAGAZINE STRESSING MEN'S FASHION WHILE THE 60YEAROLD ESQUIRE CONTINUES TO CARRY A WIDE RANGE OF SERVICE ARTICLES FICTION AND OTHER FEATURES GEARED TO MEN MR GALOTTI'S APPOINTMENT MARKS HIS RETURN TO HEARST MAGAZINES WHERE HE WAS THE FOUNDING PUBLISHER OF COUNTRY LIVING LAUNCHED IN 1982 HE STAYED AT HEARST UNTIL 1986 LEAVING TO BECOME PUBLISHER OF CONDE NAST'S MADEMOISELLE 9401280015 940128 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO JOHN R REID 51 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER SUCCEEDING JOHN L CARL WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EARLIER THIS WEEK MR REID HAD BEEN VICE PRESIDENT OF AMOCO'S INFORMATION TECHNOLOGY DEPARTMENT SINCE 1987 9401280014 940128 WHO'S NEWS NL INDUSTRIES NL INDUSTRIES HOUSTON JOSEPH S COMPOFELICE 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THIS TITANIUM DIOXIDE PIGMENT PRODUCER AND FOR ITS AFFILIATE TREMONT CORP MR COMPOFELICE WAS A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR BAROID CORP PRIOR TO ITS MERGER WITH DRESSER INDUSTRIES INC THIS MONTH 9401280013 940128 WITH 2582 PAGES TO READ MOST WILL WANT TO WAIT FOR THE MOVIE BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW PUBLICATION OUT OF LITTLE ROCK ARK IS FAST BECOMING A HOT SELLERDESPITE ITS 64550 PRICE WHAT MIGHT BE TITLED BILL AND HILLARY'S WHITEWATER ADVENTURE IS A PACKAGE OF STATE FILINGS RELATED TO THE FAILED MADISON GUARANTY SAVINGS & LOAN ASSOCIATION THE THRIFT TINY IN COMPARISON TO OTHER CASUALTIES IN THE SAVINGS AND LOAN DEBACLE HAS DRAWN BIG MEDIA ATTENTION MADISON'S FORMER CHAIRMAN AND HIS WIFE WERE PARTNERS WITH THENGOV CLINTON AND HILLARY RODHAM CLINTON IN AN ILLFATED LAND INVESTMENT THROUGH WHITEWATER DEVELOPMENT CO AN INDEPENDENT COUNSEL IS INVESTIGATING THAT RELATIONSHIP AND ALSO MAY LOOK INTO WHETHER FUNDS FROM THE THRIFT IMPROPERLY FOUND THEIR WAY INTO MR CLINTON'S GUBERNATORIAL CAMPAIGN COFFERS LATE LAST YEAR A BATCH OF REPORTERS DESCENDED ON THE ARKANSAS SECURITIES DEPARTMENT IN LITTLE ROCK WHICH OVERSEES THRIFTS AND A VARIETY OF BUSINESSES TO GET DOCUMENTS RELATED TO MADISON AND WHITEWATER THE DEPARTMENT'S FILES CONTAIN COPIES OF MADISON GUARANTY'S CORRESPONDENCE WITH STATE REGULATORS APPLICATIONS FOR PERMISSION TO OPEN BRANCH OFFICES AND OTHER ROUTINE DOCUMENTS REPORTERS HAVE ZEROED IN ON THE THRIFT'S REQUEST TO SELL PREFERRED STOCK WHICH WAS HANDLED BY MRS CLINTON'S FORMER LAW FIRM IT TAKES EASILY THREE DAYS TO GO THROUGH THE FILINGS SAYS BRUCE BOKONY THE DEPARTMENT'S CHIEF LEGAL COUNSEL THE DOCUMENTS ARE ON MICROFILM AND BECAUSE NOT EVERY PAGE IS SUPPOSED TO BE PUBLIC WE HAVE TO HAVE AN EMPLOYEE SITTING BY THE REPORTER AND GOING THROUGH THE MICROFILM HE SAYS WHEN THE NEW YEAR BROUGHT MORE NEWS COVERAGE AND REPORTERS WE PANICKED MR BOKONY SAYS SO HE SENT OUT THE MICROFILM FOR 20 SETS OF PHOTOCOPIES AND PUT THOSE ON SALE AT THE REGULAR STATE RATE OF 25 CENTS FOR EACH OF THE 2582 PAGES THE AGENCY SOLD 16 PACKAGES IN LESS THAN TWO WEEKS COLLECTING 10328 DESPITE THE INCOME MR BOKONY ISN'T HAPPY WITH ALL THE ATTENTION WHY CAN'T YOU GUYS BAND TOGETHER HE ASKS I'VE GOT OTHER THINGS I NEED TO BE DOING I'M BEING SUED AND I'VE GOT TO DEAL WITH THAT WOW A SUIT OVER MADISON OH MOANS AN EXASPERATED MR BOKONY IT HAS NOTHING TO DO WITH THIS WE REGULATE FUNERAL HOMES AND THE FUNERAL HOMES DON'T LIKE WHAT WE'RE DOING 9401280012 940128 REGULATOR CONSIDERS NEW RULES AFFECTING MUTUAL SAVINGS BANKS WASHINGTON THE GOVERNMENT'S THRIFT REGULATOR IS CONSIDERING A MORATORIUM ON APPROVING COMMERCIALBANK BIDS TO ACQUIRE MUTUAL SAVINGS BANKS THE OFFICE OF THRIFT SUPERVISION IS EXPECTED TO MAKE A DECISION SOON A MORATORIUM WOULD ALLOW THE OTS TO STIFFEN ITS RULES FOR PROTECTING THE FINANCIAL INTERESTS OF MUTUAL SAVINGS BANK DEPOSITORS IN A TAKEOVER A SPOKESMAN SAID THE AGENCY IS RESPONSIBLE FOR REGULATING MOST MUTUAL SAVINGS BANKS WHICH ARE ESSENTIALLY THE SAME AS SAVINGSANDLOAN INSTITUTIONS AND ARE OWNED BY THEIR DEPOSITORS IN A HOUSE BANKING SUBCOMMITTEE'S HEARING WEDNESDAY OTS ACTING DIRECTOR JONATHAN FIECHTER AND SEVERAL SUBCOMMITTEE MEMBERS SAID THEIR BIGGEST CONCERN IS THAT WHEN A COMMERCIAL BANK ACQUIRES A MUTUAL SAVINGS INSTITUTION THE ACQUIRING BANK AND THE SAVINGS BANK'S OFFICERS AND DIRECTORS MAY BENEFIT FINANCIALLY BUT THE DEPOSITORS CAN GET ONLY SHARES IN THE ACQUIRING BANK WHICH AREN'T LIKELY TO APPRECIATE MUCH OTS OFFICIALS SAID IN COMPARISON WITH OTS RULES FOR MERGERS THE AGENCY'S RULES ARE CONSIDERED MORE EFFECTIVE IN GIVING DEPOSITORS THE CHANCE TO SHARE IN GAINS FROM SOCALLED CONVERSIONS IN WHICH DEPOSITOROWNED MUTUAL SAVINGS BANKS ARE TURNED INTO STOCKHOLDEROWNED SAVINGS BANKS SEPARATELY ANDREW HOVE ACTING CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP TOLD THE SUBCOMMITTEE THAT THE FDIC IS CONSIDERING URGING OR REQUIRING FOR CERTAIN MUTUAL SAVINGS BANKS THAT IT REGULATES THAT STOCKPURCHASE RIGHTS BE ISSUED TO DEPOSITORS IN A CONVERSION THEY COULD THEN SELL THE RIGHTS TO SHARE IN ANY WINDFALL THAT OFFICERS AND DIRECTORS OFTEN GAIN FROM CAPITAL RAISED IN THE CONVERSION MR HOVE SAID 9401280011 940128 MARKETING & MEDIA P&G NET ROSE 13 IN LATEST QUARTER REFLECTING COST CUTS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO FEELING THE EFFECTS OF SHARP COSTCUTTING MOVES BEGUN IN MID1993 REPORTED A 13 INCREASE IN PROFIT FOR ITS FISCAL SECOND QUARTER DESPITE LOWER DOLLAR SALES AND CONTINUED DIFFICULTIES IN ITS DIAPER AND FOOD UNITS THE CINCINNATI CONSUMERPRODUCTS COMPANY POSTED NET INCOME OF 653 MILLION OR 92 CENTS A SHARE FOR THE PERIOD ENDED DEC 31 UP FROM 576 MILLION OR 81 CENTS A SHARE SEVERAL ANALYSTS SAID THEY BELIEVE P&G'S STOCK WHICH RECENTLY HIT A HISTORIC HIGH OF 59875 UP 20 FROM LAST JANUARY WILL BE TRADING AROUND 70 WITHIN 12 MONTHS AS COST REDUCTIONS KICK IN THEY'VE GOT MOMENTUM SAID JOSEPH KOZLOFF AN ANALYST WITH SMITH BARNEY SHEARSON WHO RATES THE STOCK A BUY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY P&G SHARES WERE UNCHANGED AT 58625 SALES WERE 779 BILLION IN THE QUARTER DOWN 06 FROM 784 BILLION A YEAR EARLIER THE DECREASE REFLECTED UNFAVORABLE FOREIGNCURRENCY EFFECTS THE DIVESTITURE OF JUICE AND PULP BUSINESSES AND A WORLDWIDE ECONOMIC ENVIRONMENT THAT MADE PRICE INCREASES DIFFICULT P&G SAID HOWEVER UNIT VOLUMES WERE STRONG RISING 6 AS A RESULT OF PRICE CUTS AND AGGRESSIVE MARKETING UNIT SALES OF LAUNDRY AND CLEANING PRODUCTS WERE UP 9 IN THE US P&G CUT THE PRICE OF LIQUID LAUNDRY DETERGENTS AND FABRIC SOFTENERS LAST SUMMER P&G HAD BETTER RESULTS INTERNATIONALLY THAN IN THE US DOMESTIC VOLUMES ROSE 4 WHILE INTERNATIONAL VOLUMES WERE UP 7 EARNINGS GOT A BOOST FROM A COSTCUTTING PROGRAM ANNOUNCED LAST JULY UNDER WHICH P&G IS CUTTING 13000 JOBS AND SHUTTING ABOUT 30 PLANTS P&G CHAIRMAN EDWIN L ARTZT SAID BOTH THE US AND INTERNATIONAL BUSINESSES SHOWED GOOD EARNINGS GROWTH DUE IN PART TO OUR RESTRUCTURING PROGRAM WHICH IS JUST BEGINNING TO CONTRIBUTE TO OUR EARNINGS PROGRESS THE RESULTS CONTAINED SOME BLEMISHES HOWEVER P&G'S 33 BILLION FOOD AND BEVERAGE BUSINESS WHICH INCLUDES PRINGLES SNACKS FOLGERS COFFEE AND DUNCAN HINES CAKE MIXES HAD NO VOLUME GROWTH P&G'S 15 BILLION US DISPOSABLEDIAPER BUSINESS SAW VOLUMES PLUMMET 10 FROM A YEAR EARLIER THE COMPANY PLAYED DOWN THE DOMESTIC COMPARISON CITING THE PREVIOUS YEAR'S STRONG SALES FOLLOWING A PRICE CUT HOWEVER A NEW ROUND OF PRICE CUTS IN MAY FOLLOWED BY THE SEPTEMBER LAUNCH OF PREMIUMPRICED PAMPERS ULTRA DRY THINS DIDN'T SEEM TO HELP IN THE QUARTER INTERNATIONAL SALES WHICH REPRESENT TWOTHIRDS OF THE COMPANY'S DIAPER SALES ROSE 7 9401280010 940128 TECHNOLOGY MERCK SAYS VACCINE FOR CHICKEN POX GOT A FAVORABLE REVIEW WHITEHOUSE STATION NJ MERCK & CO SAID ITS CHICKEN POX VACCINE WAS FAVORABLY REVIEWED LATE YESTERDAY BY A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE THE COMMITTEE FOUND THAT THE DATA PRESENTED BY MERCK SUPPORT THE COMPANY'S CLAIMS THAT THE VACCINE VARIVAX IS SAFE AND EFFICACIOUS IN CHILDREN AND ADULTS ACCORDING TO MERCK THE FDA USUALLY BUT DOESN'T ALWAYS FOLLOW THE RECOMMENDATIONS OF ITS COMMITTEES FDA OFFICIALS COULDN'T BE REACHED THE VACCINE HAD BEEN RECOMMENDED FOR APPROVAL BY AN FDA COMMITTEE FOUR YEARS AGO BUT THE GOVERNMENT AGENCY ASKED THE COMPANY TO PROVIDE ADDITIONAL SAFETY AND EFFECTIVENESS DATA WHICH WAS PRESENTED YESTERDAY SINCE 1981 VARIVAX HAS BEEN TESTED IN CLINICAL TRIALS INVOLVING MORE THAN 11000 CHILDREN AND ADULTS ACCORDING TO MERCK IF APPROVED VARIVAX WILL BE THE FIRST VACCINE IN THE US AGAINST THE DISEASE WHICH STRIKES AN ESTIMATED 35 MILLION PEOPLE IN THE US A YEAR THE DISEASE USUALLY CAUSES MILD ALTHOUGH UNCOMFORTABLE SYMPTOMS BUT IN RARE CASES COMPLICATIONS DEVELOP RESULTING IN ABOUT 9000 HOSPITALIZATIONS AND BETWEEN 50 AND 100 DEATHS A YEAR ACCORDING TO MERCK SOME MEDICAL PROFESSIONALS HAVE QUESTIONED WHETHER THE IMMUNITY CAUSED BY THE VACCINE WILL WANE OVER TIME CAUSING CHICKEN POX TO STRIKE IN ADULTHOOD WHEN IT IS FAR MORE SERIOUS THE CLINICAL STUDIES HAVE FOLLOWED SOME PATIENTS FOR AS LONG AS NINE YEARS AND IMMUNITY DOESN'T APPEAR TO DIMINISH SAID R GORDON DOUGLAS JR HEAD OF THE MERCK VACCINE DIVISION IF APPROVED THE DRUG IS EXPECTED TO GENERATE ANNUAL SALES OF ABOUT 130 MILLION IN A FEW YEARS SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER DR DOUGLAS DECLINED TO COMMENT ON THE ESTIMATE 9401280009 940128 DIVIDEND NEWS PFIZER INC PFIZER INC NEW YORK INCREASED ITS QUARTERLY DIVIDEND TO 47 CENTS A SHARE FROM 42 CENTS PAYABLE MARCH 17 TO STOCK OF RECORD FEB 11 PFIZER IS A DIVERSIFIED HEALTHCARE COMPANY 9401280008 940128 GLOBAL ARMS MARKET BOMBS AWAY WEAPONS MERCHANTS ARE GOING GREAT GUNS IN POSTCOLD WAR ERA US BECOMES PUSHY SELLER COMPETING WITH RUSSIA BY TARGETING THIRD WORLD WORRIES OVER PROLIFERATION BY JEFF COLE AND SARAH LUBMAN STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE GLOBAL ARMS BUSINESS CONVENTIONAL WISDOM IS BEING STOOD ON ITS HEAD FOR DECADES THE US HAD BEEN RELUCTANT TO SPREAD ITS BEST ARMAMENTS OVER THE GLOBE BUT SINCE THE END OF THE COLD WAR EVEN AS WASHINGTON URGES OTHERS TO SHOW RESTRAINT IN THE NAME OF GLOBAL SECURITY THE US HAS BECOME THE WORLD'S PUSHIEST ARMS MERCHANT FROM SOUTHEAST ASIA TO SWITZERLAND AND ACROSS THE MIDEAST AMERICANS HAVE UNLEASHED A BARRAGE OF WEAPONS EXPORTS LARGELY TO PROP UP THE DECLINING DOMESTIC DEFENSE INDUSTRY AND KEEP AEROSPACE INDUSTRY EMPLOYMENT FROM SLIPPING EVEN MORE RAPIDLY TAKE THE CASE OF MALAYSIA WHICH JUST COMPLETED A DEAL FOR EIGHT SOPHISTICATED JET FIGHTERS MADE BY MCDONNELL DOUGLAS CORP IN DECEMBER 1992 WHILE RETURNING TO KUALA LUMPUR AFTER A TOUR OF THE AIRCRAFT CARRIER USS KITTY HAWK DEFENSE MINISTER DATUK MOHAMED NAJIB ABDUL RAZAK TOLD US AMBASSADOR JOHN WOLF THAT THE SOUTHEAST ASIAN NATION WOULD ORDER 660 MILLION OF RUSSIAN MIG29R FIGHTERS MALAYSIA WOULD HAVE BOUGHT AMERICAN HE EXPLAINED BUT YOU PROBABLY WOULDN'T BE PREPARED TO RELEASE YOUR HIGHTECH AIRCRAFT ALERTED BY THE AMBASSADOR TOP US GOVERNMENT AND CORPORATE OFFICIALS SPRANG INTO ACTION AND IN A MATTER OF MONTHS THEY PERSUADED MALAYSIA TO AUGMENT THE RUSSIAN PURCHASE WITH THE F/A18 ATTACK JETS THE MALAYSIAN DEAL IS JUST ONE IN A SURGE OF THIRD WORLD PURCHASES OF US ARMS ACCORDING TO FIGURES FROM CONGRESSIONAL RESEARCH SERVICE AMERICAN SALES ACCOUNTED FOR 57 OF THE 239 BILLION OF WEAPONS THAT DEVELOPING NATIONS ORDERED IN 1992 IN 1987 WHEN TOTAL THIRD WORLD ARMS PURCHASES WERE TWICE WHAT THEY ARE TODAY THE US SHARE WAS LESS THAN 13 AND THE CLINTON ADMINISTRATION IS SOLIDLY BEHIND US COMPANIES IN THEIR SALES EFFORTS EVEN AS IT HARBORS VAGUE HOPES ABOUT ENDING ARMS PROLIFERATION A STANCE THAT WAS REITERATED AT THE RECENT USRUSSIAN SUMMIT IN MOSCOW THE TOTAL OF WEAPONS SALES ARRANGED THROUGH WASHINGTON LAST YEAR TOPPED 34 BILLION AN UNPRECEDENTED LEVEL SUCH BOOMING SALES HARK BACK TO THE DAYS OF OVERALL US EXPORT LEADERSHIP BEFORE THE JAPANESE AND LOWERCOST THIRD WORLD PRODUCERS HELPED CREATE THIS NATION'S HUGE TRADE DEFICITS IN SUCH AREAS AS AUTOS AND ELECTRONICS BUT THE DRIFT OF US ARMSEXPORT POLICY AS DOMESTIC ECONOMIC CONCERNS TAKE PRECEDENCE OVER GEOPOLITICAL GOALS IS RAISING QUESTIONS ABOUT THE RISKS OF PROLIFERATION WHILE KEEPING US INDUSTRY STRONG AIDS THE NATION'S SECURITY PROVIDING TOPTIER WEAPONS TO CONTENTIOUS NEIGHBORS IN THE WORLD'S HOT SPOTS COULD BE TANTAMOUNT TO STRIKING MATCHES IN A TINDERBOX FURTHER THE US SALES PUSH IS STIRRING COMPETITIVE VIGOR WITHIN RUSSIA AND EUROPE INCREASING CHANCES OF REGIONAL DESTABILIZATION OVERALL GLOBAL DEMAND FOR ARMS HAS SHRUNK AS MANY BUYER NATIONS COME TO GRIPS WITH THEIR OWN ECONOMIC ILLS OR FEEL LESS ANXIOUS BECAUSE OF RELAXED EASTWEST TENSIONS BUT THOSE COUNTRIES THAT ARE BUILDING ARSENALS SUCH AS THAILAND AND TAIWAN OFTEN FIND SELLERS WILLING TO UNDERCUT EACH OTHER OFFERING FRIENDLY TERMS ON EVERYTHING FROM SIDE ARMS TO GUIDED MISSILES NUCLEAR WARHEADS EXCLUDED EVEN SOME US DEFENSECOMPANY EXECUTIVES WORRY THAT GLOBALSECURITY CONSIDERATIONS ARE GETTING SHORT SHRIFT BECAUSE ARMSEXPORTING COUNTRIES ARE SO PRESSED TO PROTECT JOBS AND THEIR INDUSTRIAL BASE I THINK THE WORLD AS A WHOLE IS PERILOUSLY CLOSE TO THAT LINE SAYS NORMAN AUGUSTINE CHAIRMAN OF MARTIN MARIETTA CORP A LEADING ARMS EXPORTER SOME IN THE US ALSO BELIEVE THAT THE SALES SPREE ISN'T HELPFUL FOR THE LONGTERM HEALTH OF THE AEROSPACE INDUSTRY EXPORTING ARMS IS NOT A GROWING MARKET AND THERE'S SUBSTANTIALLY GROWING COMPETITION SAYS DEPUTY DEFENSE SECRETARY WILLIAM PERRY WHO HAS BEEN TAPPED BY PRESIDENT CLINTON FOR THE TOP PENTAGON POST I'D SAY THIS IS A FAINT HOPE FOR THE COMPANIES ONE DISCONCERTING FEATURE OF THE EXPORT FRENZY IS THAT IT HASN'T HALTED THE SLIDE IN DEFENSERELATED EMPLOYMENT IN THE US WHICH THE INDUSTRY ESTIMATES AT A RATE OF 20000 JOBS A MONTH SUCH JOBS HAVE FALLEN 20 SINCE 1987 INCLUDING AN 11 DROP IN THE PAST YEAR ALONE AND NOW TOTAL ABOUT 27 MILLION ONE REASON FOR THE DROP MAY BE THAT ARMS EXPORTS HAVE BEEN ACCOMPANIED BY A SHARP RISE IN THE LEVEL OF OFFSET CONCESSIONS WHICH ALLOW BUYERS TO DO MORE OF THE MANUFACTURING WORK IN THEIR OWN COUNTRIES AND HELP THEM SET UP THEIR OWN CIVILIAN INDUSTRIES BY TRANSFERRING ARMSRELATED TECHNOLOGY OUT OF THE US SUCH CONCESSIONS COMPOUND THE DRAIN ON AMERICAN INDUSTRY THE MALAYSIANS FOR EXAMPLE HAVE SUCCESSFULLY PRESSED THE US AND MCDONNELL DOUGLAS TO REDUCE THE PRICE OF THE F/A18 AND ARE SEEKING ADVANCED COMPOSITEPARTS TECHNOLOGY WORK ON COMMERCIAL AIRPLANES AND ESTABLISHMENT OF A PILOTTRAINING AND MAINTENANCE CENTER KUALA LUMPUR ALREADY HAS WON FROM MOSCOW GENEROUS PROMISES OF TECHNOLOGY TRANSFER AND PERMISSION TO MAKE AS MUCH AS HALF THE PAYMENTS IN PALM OIL US ARMS MAKERS ARGUE THAT EVEN IF SOME JOBS ARE LOST AMERICAN SECURITY IS SERVED BY DEFENSE CONTRACTORS STAYING COMPETITIVE IN THE WORLD MARKET THE DOGFIGHT OVER MALAYSIA WITH ITS THORNY COMPLEXITIES IN SOME WAYS SEEMS A CRUCIAL ONE FOR US ARMS MERCHANTS FIGHTER JETS WHICH ARE TYPICALLY OUTFITTED WITH MISSILES RADAR AND OTHER SYSTEMS ARE THE WEAPON OF CHOICE IN THE 1990S AND THE USRUSSIA CONTEST OVER THE JETS IS THEIR FIRST SINCE THE SPLINTERING OF THE SOVIET UNION THE RIVALRY OVER THE MALAYSIAN SALE ALSO SHOWS THE PRESSURE RUSSIA CAN EXERT AS IT TRIES TO REVIVE ITS CRUMBLING EXPORT MACHINERY AND CATCH UP TO AMERICA'S FLOURISHING TRADE THE 11THHOUR US BID FOR THE MALAYSIAN BUSINESS HAS BEEN VIEWED BY SOME RUSSIANS AS UNWELCOME INTERFERENCE IN A NEARLY COMPLETED TRANSACTION THE RUSSIANS NOW PLEDGE TO REDOUBLE THEIR EXPORT PUSH IN PART BY TRYING TO IMPROVE THE SHABBY AFTERSALE SERVICE THAT HAS LONG SCARED OFF CUSTOMERS IF THE US IS DETERMINED TO INTERFERE SAYS IVAN MATEROV FIRST DEPUTY MINISTER OF FOREIGN ECONOMIC RELATIONS RUSSIA WILL CONTINUE TO SLASH ITS PRICES AND OUR RIVAL WILL HAVE A PROBLEM RUSSIA ALREADY DISCOUNTS ARMS AS MUCH AS 40 BELOW THE COST OF SIMILAR WESTERN WEAPONS US COMPANIES POINT TO THAT DISCOUNTING AND TO NEW RUSSIAN JOINT VENTURES WITH EUROPEAN COMPANIES TO JUSTIFY MORE FEDERAL HELP WITH EXPORTS FOR ALL THE BLUSTER ON BOTH SIDES HOWEVER THE RUSSIAN CAMPAIGN HAS A LONG WAY TO GO RUSSIA WON A HUGE 1992 ARMOREDVEHICLE ORDER FROM THE UNITED ARAB EMIRATES BUT THAT HAS BEEN ITS ONLY FOOTHOLD IN THE USDOMINATED MIDDLE EAST MARKET EXCEPT FOR SUCH TRADITIONAL CUSTOMERS AS IRAN WHICH RECENTLY BOUGHT SEVERAL KILOCLASS SUBMARINES INDIA AND CHINA REMAIN MOSCOW'S MOST IMPORTANT CLIENTS BUYING ITS FIGHTERS MISSILES TANKS AND NAVAL SYSTEMS LIKE OTHER SELLERS THE FORMER SOVIETS FIGURE THEIR BEST NEW PROSPECTS ARE IN ASIA WHERE A CHINESE MILITARY BUILDUP HAS STIMULATED REGIONAL CRAVINGS FOR ADVANCED ARMS THE RUSSIANS HOPE MALAYSIA'S PURCHASE OF THE MIGS WILL HELP OPEN ANOTHER 10 ASIAN MARKETS FOR THE JETS SAYS ONE THIRD WORLD ATTACHE IN MOSCOW WHO REPORTS GETTING 10 CALLS A DAY FROM RUSSIANS OFFERING EVERYTHING FROM RIFLES TO TACTICAL AIRCRAFT THE MALAYSIAN PURCHASE TOO HAS FUELED DEMAND WHEN WORD REACHED PRESIDENT FIDEL RAMOS OF THE PHILIPPINES A USUALLY TIGHTFISTED NATION HE PUBLICLY VOWED TO SPEED THE UPGRADING OF HIS OWN AIR FORCE SIMILAR PRONOUNCEMENTS HAVE COME FROM THAILAND A TRADITIONAL CHINESE BUYER THAT US OFFICIALS SAY IS EYEING NEW RUSSIAN AND US HELICOPTERS AS WELL AS MIGS AND AV8B VERTICALTAKEOFF FIGHTERS BUILT BY MCDONNELL DOUGLAS AND BRITISH AEROSPACE PLC SINGAPORE IS CLOSE TO ORDERING EITHER LOCKHEED CORP F16S OR F/A18S AND INDONESIA HAS BEGUN PROWLING FOR USMADE SURVEILLANCE PLANES HERBERT J LANESE CHIEF FINANCIAL OFFICER FOR MCDONNELL DOUGLAS SAYS THE MALAYSIA SALE OPENS UP A NUMBER OF OPPORTUNITIES FOR US IN SOUTHEAST ASIA THE RUSSIAN PURSUIT OF NEW MARKETS BETRAYS ONE SHORTCOMING IN US POLICY WHILE WASHINGTON HAS AMASSED BILLIONS OF DOLLARS TO HELP REBUILD RUSSIA'S ECONOMY IT HAS FAILED TO WIN A RUSSIAN COMMITMENT TO STEM ARMS EXPORTS IN RETURN EVEN IF SUCH AN AGREEMENT WERE REACHED IT ISN'T CLEAR THAT PRESIDENT BORIS YELTSIN COULD DELIVER RUSSIA'S GOVERNMENT DOESN'T EVEN KNOW WHAT THE REAL STOCKS AND RESERVES ARE SAYS VITALY SHLIKOV AN ADVISER TO RUSSIA'S DEFENSE MINISTRY HE ADDS THAT THERE IS NO UNIFIED OVERSIGHT OF EXPORTS OR OF COMPLIANCE WITH CONVENTIONALARMS ACCORDS AND TANKS AND OTHER WEAPONS ARE MADE IN UKRAINE WHOSE PRESIDENT HAS AGREED TO SURRENDER THE FORMER SOVIET REPUBLIC'S NUCLEAR ARSENAL CLEARLY THERE IS STILL PLENTY OF DEMAND FOR ADVANCED ARMS AROUND THE WORLD MANY NATIONS FEEL THAT THEY MUST COUNTER THE BUILDUP OF CONVENTIONAL OR NUCLEAR FORCES BY REGIONAL TROUBLEMAKERS LIKE NORTH KOREA IRAN AND IRAQ OR THAT THEY SIMPLY NEED TO REPLACE AGING WEAPONS ONE NATION OF SPECIAL CONCERN IS CHINA WHICH HAS ABSORBED NOT ONLY RUSSIAN SU27 FLANKER FIGHTERS BUT ADVANCED TECHNOLOGY AS WELL CHINA'S RECENT RECRUITMENT OF AS MANY AS 1000 RUSSIAN SCIENTISTS AND ENGINEERS COULD HELP BOOST ITS EXPORTING POWER AND LAST WEEK BEIJING SAID IT PLANNED TO DESIGN AND PRODUCE ADVANCED JET FIGHTERS BY THE YEAR 2000 ONCE THEY KNOW HOW TO BUILD THE JETS THEY CAN MAKE AS MANY AS THEY NEED SAYS IAN ANTHONY A LEADING RESEARCHER AT THE STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE WHICH TRACKS ARMS TRANSACTIONS IN THE US A MAJOR ADVANTAGE OF EXPORTING ARMS IS THAT SUCH SALES LEAD TO INCREASED PRODUCTION AND THUS HOLD DOWN THE PERITEM COST TO THE US MILITARY AND BRIAN ROWE CHAIRMAN OF A GENERAL ELECTRIC CO UNIT THAT BUILDS ENGINES FOR THE F/A18 AND OTHER WARPLANES ECHOES ANOTHER FAVORED EXPORTER ARGUMENT IF WE DON'T SELL THESE ARMS SOMEONE ELSE WILL THE DANGER IS THAT SEEDS SOWN NOW BY US EXPORTS INCLUDING NEWLY LOOSENED EXPORTS OF MISSILELAUNCHING TECHNOLOGY COULD GERMINATE INTO ARMSCONTROL LAND MINES THE NEW KILLING POWER BRANDISHED BY MORE NATIONS HARDLY ENSURES THAT THEY WILL BECOME MORE SOPHISTICATED IN RESOLVING REGIONAL DISPUTES PEACEFULLY IT'S A VERY VOLATILE WORLD SAYS BERNARD SCHWARTZ CHAIRMAN OF LORAL CORP THE DEFENSEELECTRONICS COMPANY I DON'T THINK THE LESSONS OF YUGOSLAVIA ARE LOST ON MANY COUNTRIES HE ADDS BUT MANY EXPERTS OUTSIDE THE INDUSTRY BELIEVE THAT WITH THE COLD WAR CONSIGNED TO HISTORY THE US NEEDS A NEW POLICY OF ARMSEXPORT RESTRAINT TO GUIDE IT THE CONSERVATIVE HUDSON INSTITUTE'S WILLIAM SCHNEIDER JR PRESIDENT REAGAN'S UNDERSECRETARY OF STATE FOR SECURITY ASSISTANCE SCIENCE AND TECHNOLOGY WARNS THAT TODAY'S PRECISIONGUIDED CONVENTIONAL ARMS CAN DO THE KIND OF DAMAGE ATTRIBUTED TO WEAPONS OF MASS DESTRUCTION SUCH AS ATOMIC BOMBS AND CHEMICAL WEAPONS WITH THE RIGHT ACQUISITIONS COUNTRIES WITH VERY SMALL FORCES CAN BE VERY EFFECTIVE NATALIE GOLDRING DEPUTY DIRECTOR OF THE BRITISH AMERICAN SECURITY INFORMATION COUNCIL AN INDEPENDENT RESEARCH GROUP BASED IN WASHINGTON WORRIES THAT THE US IS SELLING WEAPONS AS SOPHISTICATED AS ANYTHING IN THE US ARSENAL SALES SHOULDN'T BE CONDUCTED TODAY AS IF WE KNOW WHICH COUNTRIES WILL BE STABLE IN 2003 OR 2013 MS GOLDRING SAYS IF US POLICY WERE DEDICATED TO ENCOURAGING ARMS CUSTOMERS TO AVERT CONFLICTS PEOPLE WOULD BE LESS CONCERNED SAYS DR ANTHONY OF THE STOCKHOLM INSTITUTE BUT UNLESS THERE'S A REASON TO PREVENT THE SALE YOU JUST GO AHEAD BECAUSE YOU WANT THE COMMERCIAL ADVANCES YOU WANT THE MONEY THE PROMISE OF KEEPING US WORKERS EMPLOYED AS MUCH AS REVENUE WAS AT THE HEART OF THE BIGGEST WEAPONSEXPORTS DEALS OF LATE PRESIDENT BUSH IN HIS CAMPAIGN AGAINST THENGOV CLINTON UNVEILED TWO PREELECTION DEALS DIRECTLY TO DEFENSE WORKERS HE FIRST TOLD A CHEERING ST LOUIS CROWD THAT MCDONNELL DOUGLAS WOULD BE ALLOWED TO SELL 9 BILLION OF ADVANCED F15 FIGHTERS TO SAUDI ARABIA THE SAUDIS THEIR SPENDING POWER IMPAIRED BY LOWER OIL PRICES CURRENTLY ARE DISCUSSING THE RESTRUCTURING OF THAT TRANSACTION THEN HE ANNOUNCED TO A JUBILANT THRONG AT A FORT WORTH TEXAS F16 FIGHTER PLANT THEN OWNED BY GENERAL DYNAMICS THAT HE WOULD OVERTURN AN 11YEAROLD US BAN ON SALES OF ADVANCED FIGHTERS TO TAIWAN AND SELL IT 150 OF THOSE JETS FOR 6 BILLION LOCKHEED SUBSEQUENTLY BOUGHT THE PLANT AND THE F16 LINE IN DECEMBER 1992 FROM GENERAL DYNAMICS CORP THE DEAL ALSO ILLUSTRATES TAIWAN'S INFLUENCE IN THE WORLD OF ARMS PURCHASES WHEN SOME US OPPOSITION WAS EXPRESSED ABOUT WORK AND TECHNOLOGY BEING SHIFTED TO TAIWAN TAIPEI LAWMAKERS CHALLENGED THE CONTRACT TERMS BRIEFLY BLOCKED PAYMENTS AND THREATENED TO HAVE THE MILITARY OFFER A BIGGER ORDER TO DASSAULT AVIATION SA OF FRANCE MAKER OF THE MIRAGE 20005 FIGHTER THE DEAL WAS COMPLETED A YEAR LATER THE TAIWANESE HAD WON AN AGREEMENT FOR 11 BILLION IN CONTRACTS TO MAKE PARTS FOR AND MAINTAIN THE F16S THE TAIWANESE ALSO HAVE BEEN TOLD THEY CAN BUY HARPOON ANTISHIP MISSILES CHINA WAS POLITICALLY ALIENATED BY THE HUGE TAIWAN F16 DEAL WHICH FAR SURPASSED THE VOLUME OF RUSSIAN JETS BOUGHT BY THE CHINESE SO FAR BEIJING BOYCOTTED THE ARMSCONTROL TALKS INITIATED BY MR BUSH AMONG FIVE WORLD POWERS RUSSIA BRITAIN AND FRANCE ARE THE OTHERS TO RESTRAIN SELLERS AFTER THE PERSIAN GULF WAR SINCE DROPPING OUT CHINA HAS EXPANDED SALES OF LONGRANGE MISSILES TO IRAN AND STEPPED UP EXPORTS OF SENSITIVE TECHNOLOGIES TO NORTH KOREA AND PAKISTAN US OFFICIALS SAY EVEN AT SAM'S BULLDOG BAR IN FORT WORTH A FAVORITE OF LOCKHEED WORKERS THE SHINE HAS FADED FROM THE TAIWAN SALE OWNER EDRIS SAM COGBURN REMEMBERS HOW JOYOUS WORKERS FLOCKED TO HEAR MR BUSH ANNOUNCE THE DEAL NOW SHE SAYS SOME ARE FEELING DOWN ABOUT CONTINUING LAYOFFS AND THE CANCELLATION OF 200 ORDERS FOR F16S BY THE US AND BY PAKISTAN IN WASHINGTON REGRETS OVER THE TAIWAN F16 CONTRACT HAVE LED SOME PENTAGON OFFICIALS TO CONTEMPLATE RENEGING WHICH WOULD GAIN CHINA'S APPROVAL AND PERHAPS SECURE ITS HELP IN PERSUADING NORTH KOREA TO HALT ITS NUCLEAR PROGRAM SUCH A FLIPFLOP WOULD DOUBTLESS HORRIFY BOTH TEXAS AND TAIWAN AND OPEN THE US TO CRITICISM FOR A HASTILY PLANNED SALE IN THE FIRST PLACE THE US APPROACH TO ARMS EXPORTS HAS BEEN AWASH IN CONTRADICTIONS EVER SINCE THE NATION SHOWED OFF ITS WEAPONSMAKING PROWESS IN THE GULF WAR CREATING A HUGE SWELL IN DEMAND FOR US SYSTEMS SUCH AS PATRIOTMISSILE DEFENSES AND M1A1 TANKS WHILE CONTRADICTIONS OVER PROLIFERATION POLICY EMERGED DURING THE BUSH YEARS THE CLINTON ADMINISTRATION HAS BEEN SLOW EVEN TO ASSESS ITS CHOICES IN DEVISING AN ARMSCONTROL AGENDA A MAJOR PENTAGON REVIEW OF EXPORTS AND ACQUISITIONS IS IN ITS EARLY STAGES AND LYNN E DAVIS UNDERSECRETARY OF STATE FOR INTERNATIONAL SECURITY AFFAIRS DECLINES TO BE INTERVIEWED ABOUT CONVENTIONALARMS TRANSFERS A SPOKESWOMAN SAYS A POLICY IS NOT YET FINALIZED ANDREW J PIERRE OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE A PRIVATELY FUNDED THINK TANK SAYS HE CAN SEE THE PROBLEM FACING BILL CLINTON ON ONE SIDE OF THE BRAIN HE'S GOT NONPROLIFERATION ON THE OTHER IT'S AMERICAN ECONOMIC COMPETITIVENESS AND SUPPORT FOR INDUSTRY THE ADMINISTRATION SWITCHED POSITIONS BEFORE HELPING TO KILL INDUSTRYBACKED LEGISLATION TO PROVIDE 25 MILLION THAT COULD HAVE PAID FOR GUARANTEES TO LEVERAGE 1 BILLION OF WEAPONSEXPORT LOANS IN ANOTHER CASE THE ADMINISTRATION MISJUDGED CONGRESSIONAL SENTIMENT AND BACKED DOWN FROM ITS PROPOSED BAN ON THE USE OF 4 BILLION IN ANNUAL FOREIGN MILITARY AID FOR CERTAIN EXPORTS THE INDUSTRY CAN ARRANGE WITHOUT FEDERAL INTERCESSION TO 10 COUNTRIES INCLUDING PORTUGAL ISRAEL EGYPT TURKEY GREECE AND JORDAN TYPICALLY THE PENTAGON AND THE STATE DEPARTMENT MUST APPROVE SALES OF MILITARY GEAR EVEN AS THE PENTAGON'S MR PERRY WAS DECRYING OVERDEPENDENCE ON EXPORTS COMMERCE SECRETARY RON BROWN WAS AT THE PARIS AIR SHOW TOUTING US PRODUCTS TO MALAYSIA INDONESIA AND SAUDI ARABIA THE PENTAGON RECENTLY REVERSED A STAND AGAINST SENDING WEAPONS AND PERSONNEL TO SUCH EXHIBITIONS AND HAS AUTHORIZED A LARGE US PRESENCE AT THE SINGAPORE SHOW NEXT MONTH AND SECRETARY OF STATE WARREN CHRISTOPHER HAS WON CORPORATE PRAISE FOR AFFIRMING SUPPORT FOR US EXPORTS ONCE THE US AMBASSADOR WOULD ONLY GO IN WITH ALL HIS FORCES AND LOBBY FOR A US DEFENSE COMPANY WHEN A 10 MILLION CONTRACT WAS AT STAKE SAYS MOSHE HOROWITZ VICE PRESIDENT OF ISRAEL'S TADIRAN LTD A TELECOMMUNICATIONS AND ELECTRONICS MAKER NOW THEY GO FULL FORCE ON EVERY BID EVEN FOR HALF A MILLION IT ISN'T JUST LOCAL AMBASSADORS WHO COME OUT SWINGING FOR A SALE WHEN LITTON INDUSTRIES INC WAS COMPETING LAST YEAR WITH GEC MARCONI A UNIT OF GENERAL ELECTRIC CO OF BRITAIN TO SELL TO GREECE AN ADVANCED ELECTRONICWARFARE SYSTEM FOR NEW F16S MESSRS BROWN AND CHRISTOPHER WROTE TO ATHENS PLUGGING THE US PRODUCT LITTON LANDED THE 122 MILLION DEAL SUCH SUPPORT ELATES THE INDUSTRY OF COURSE SUDDENLY WE HAVE A GOVERNMENT THAT WILL ACTUALLY HELP YOU IN A TRANSACTION SAYS DAVID DANJCZEK INTERNATIONAL VICE PRESIDENT FOR LITTON IN MANY BOARDROOMS IT ISN'T UNUSUAL TO FIND PLANS FOR DOUBLING EXPORTS OVER THE NEXT FIVE YEARS EXPORTS ARE AN IMPORTANT CUSHION AND TARGET AS DOMESTIC SPENDING ERODES SAYS EDMUND WOOLLEN A VICE PRESIDENT AT RAYTHEON CO PURVEYOR OF THE PATRIOT AND AIRCRAFTFIRED MISSILES THE SUPPORT COMPLEMENTS EFFORTS BY THE CONTRACTORS THEMSELVES OFTEN IN THE AREA OF CUSTOMER FINANCING WHEN LITTON COMPETED FOR A SHIPREFURBISHMENT CONTRACT IN VENEZUELA IN 1992 THE COMPANY HAD TO INCLUDE IN ITS BID A LONGTERM FINANCING PROPOSAL LITTON SUGGESTED THAT VENEZUELA PAY FOR THE 200 MILLION IN WORK BY FLOATING COMMERCIAL EUROBONDS ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL LITTON WAS SELECTED THE CURRENT EXPORT BOOM MAY PROVIDE AT LEAST A SHORTTERM SAFETY NET FOR US COMPANIES BY BEEFING UP PROFITS AND STOCK PRICES AS THEY DEAL WITH THE PRECIPITOUS DROP IN WASHINGTON'S DEFENSE SPENDING BUT SOME IN CONGRESS ARE RAISING QUESTIONS ABOUT THE LONGERTERM ECONOMIC DAMAGE THAT COULD BE WROUGHT AS CONCESSIONLADEN ARMS DEALS SHIFT ENORMOUS VOLUMES OF WORK AND KNOWHOW OVERSEAS THE GENERAL ACCOUNTING OFFICE FOR INSTANCE HAS FOUND THAT US DEFENSE COMPANIES ARE COMMONLY OFFERING CASH TO US BUYERS OF NONDEFENSE FOREIGN GOODS AS A WAY TO GIVE PRODUCTS AN EDGE OVERSEAS DEMOCRATIC SEN RUSSELL D FEINGOLD OF WISCONSIN WON SENATE APPROVAL THIS WEEK FOR HIS PROPOSAL FOR MANDATORY REPORTING TO CONGRESS ON ANY ARMS EXPORTS INCLUDING WHAT HE CALLS KICKBACKS THAT UNFAIRLY DIVERT BUSINESS AWAY FROM USBASED PRODUCERS TYPICALLY WEAPONS CONTRACTS CALL FOR OFFSETS OR COUNTERTRADE WORTH 60 TO 100 OF THE VALUE OF THE WEAPONS PURCHASED AT LEAST TWICE THE AMOUNT OF A FEW YEARS AGO BECAUSE OFFSETS AREN'T MONITORED RELATED JOB LOSSES IN THE US CAN'T BE TALLIED THEY MORE OFTEN AFFECT SMALL SUPPLIERS THOUGH WHOSE WORK IS EASIER TO DUPLICATE THE LITTLE GUY IS GOING TO GET HURT CONCEDES GE'S MR ROWE FOR A DECADE UNREGULATED CONCESSIONS HAVE PERMITTED BUYERS TO MAKE MORE PARTS AND DO MORE ASSEMBLY WORK TODAY SOME COUNTRIES CAN MAKE THEIR OWN VERSIONS OF WEAPONS BOUGHT FROM THE US YEARS AGO AND THEY ARE NOW EAGER TO EXPORT TOO AT A TUSAS AEROSPACE INDUSTRY INC PLANT NEAR ANKARA TURKEY WHERE GENERAL DYNAMICS AND THE US GOVERNMENT HELPED SET UP F16 COPRODUCTION IN THE 1980S WORKERS ARE ASSEMBLING 40 OF THE JETS FOR EXPORT TO EGYPT IN EGYPT OFFICIALS WOULD LIKE TO SELL TANKS PRODUCED AT ITS M1A1 ABRAMS TANK PLANT BUT BECAUSE COSTS ARE TOO HIGH FOR IT TO SUCCESSFULLY EXPORT THE TANKS CAIRO IS SEEKING US AID TO CONVERT THE PLANT TO MAKE TRUCKS OR BUSES THE GAO HAS FOUND 10 CASES IN WHICH THE JAPANESE HAD LEARNED TO MAKE BRAKES LANDING GEAR INSTRUMENTS AND OTHER PARTS FOR THE F15S THEY ASSEMBLE THEN THEY ARRANGED TO SUPPLY THE EQUIPMENT TO US MAKERS OF AIRLINERS IN ONE CASE FOR THE NEW BOEING CO 777 AIRCRAFT IN SAUDI ARABIA WHERE US COMPANIES HAVE WON ORDERS FOR 308 BILLION IN WEAPONS OVER THE PAST THREE YEARS GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO IS NEAR AN AGREEMENT TO BUILD A PLANT PRODUCING 500000 CAR BATTERIES ANNUALLY SAY PEOPLE FAMILIAR WITH THE ARRANGEMENTS THE PLANT WOULD BE AN INDIRECT OFFSET TO HUGHES'S 950 MILLION SALE OF A PEACE SHIELD AIRDEFENSE SYSTEM WESTINGHOUSE ELECTRIC CORP A MAJOR PRODUCER OF RADAR AND MILITARY AIRTRAFFICCONTROL SYSTEMS HAS PROVIDED THE SAUDIS WITH TECHNOLOGY TO SET UP AN ADVANCEDELECTRONICS COMPANY I UNDERSTAND IT'S AN EMOTIONAL ISSUE SAYS JT TYMANN INTERNATIONAL SALES CHIEF AT WESTINGHOUSE ELECTRONICS BUT THE US CAN'T BE SOME SORT OF ISLAND OF EXPORTS AND SAY PEOPLE OUGHT TO BUY OUR PRODUCTS HE SAYS WE HAVE TO GET INTO INTERNATIONAL ALLIANCES AND COOPERATION STILL WHEN SUCH OFFSET ARRANGEMENTS HELP OTHER COUNTRIES SELL THEIR OWN NONDEFENSE GOODS IN THE US THEY HAVE DRAWN FIRE FROM CONGRESSIONAL INVESTIGATORS AND LAWMAKERS JOHN RICHARDS A SENIOR COMMERCE DEPARTMENT OFFICIAL SAYS THE GOVERNMENT SHOULDN'T INHIBIT FOREIGN SALES BUT WHEN YOU GIVE AWAY 100 OFFSETS YOU'RE NOT GETTING THE FULL BENEFIT AT HOME YET EFFORTS TO REIN IN OFFSETS HAVE FLOPPED AND A 1992 LAW REQUIRING COMPANIES TO REPORT OFFSETS IN EXCESS OF 5 MILLION HAS YET TO BE ENFORCED EVEN WHILE EXPORTS INCREASE US INDUSTRY EFFORTS TO LICENSE THIRD WORLD CLIENTS TO USE AMERICAN MILITARY TECHNOLOGY HAVE EXPLODED ONE SENIOR FEDERAL OFFICIAL ESTIMATES THAT MORE THAN 7000 SUCH EXPORTLICENSE APPLICATIONS WERE EXPECTED TO BE FILED LAST YEAR WITH THE STATE DEPARTMENT WHICH RECEIVED ALMOST NO SUCH APPLICATIONS BEFORE 1990 IT HAS GONE CRAZY OVER THE LAST THREE YEARS SAYS THE OFFICIAL NOTING THAT US COMPANIES USUALLY PLACE THE TECHNOLOGY WHERE IT CAN BE DEVELOPED INEXPENSIVELY SO THEY CAN PROFIT FROM GLOBAL RESALE BURIED AMONG THE APPLICATIONS LAST YEAR WAS ONE FROM LORAL SEEKING TO EXPORT TO ISRAEL THE LASER TARGETDESIGNATOR USED ON F/A18S US GOVERNMENT AND INDUSTRY OFFICIALS SAY THE LICENSE WAS APPROVED DESPITE OBJECTIONS FROM SOME PENTAGON REVIEWERS AND THE TECHNOLOGY WILL BE COMMINGLED WITH ISRAELIRESEARCHED DEVICES FOR RESALE TO THIRD PARTIES PENTAGON REGULATORS WINCED AGAIN AT A MARTIN MARIETTA APPLICATION SINCE APPROVED TO SEND TO ISRAEL'S BVR TECHNOLOGIES LTD THE ADVANCED ELECTRONIC RANGES USED TO TRAIN AND TEST PILOTS DURING MANEUVERS MARTIN MARIETTA SAYS THE US KNOWLEDGE IS OLD AND EXPORTING IT WON'T COMPROMISE SECURITY OR JOBS RATHER THE NEW ISRAELI CAPABILITY WILL ENHANCE SALES FOR A BVR/MARTIN MARIETTA JOINT VENTURE MARTIN MARIETTA SAYS SOME CRITICS IN THE PENTAGON ARGUE THAT AT A MINIMUM ISRAEL WILL EMERGE AS A NEW RIVAL IN A CROWDED MARKET ISRAELI CATALOGS ARE LOADED WITH WEAPONS DERIVED FROM US SYSTEMS THEY SAY AND ISRAEL HAS SOLD ITS BORROWED SKILLS TO NATIONS OUT OF US FAVOR RECENTLY THE DIRECTOR OF CENTRAL INTELLIGENCE JAMES WOOLSEY ADVISED A SENATE COMMITTEE OF SEVERAL BILLION DOLLARS IN ISRAELI TECHNOLOGY SALES TO CHINA OVER A DECADE UNEASINESS OVER ISRAELI DEALINGS HAS INTENSIFIED WITH ITS DECISION YESTERDAY TO BUY 2 BILLION OF MCDONNELL DOUGLAS F15S IN THE FIRST BIG EXPORT SALE EXPECTED TO BE APPROVED UNDER PRESIDENT CLINTON IN A HEATED CONTEST AGAINST LOCKHEED AND ITS F16 FIGHTER BOTH COMPANIES STRESSED A WILLINGNESS TO PLACE EXPANDED AEROSPACE SUBCONTRACTS IN ISRAEL COMING ON THE HEELS OF THE MIDEAST PEACE TALKS THE SALE IS CONTROVERSIAL BECAUSE ISRAEL WILL BUY THE PLANES WITH 18 BILLION IN ANNUAL US GRANTS ISRAEL'S ESTIMATED 21 BILLION IN PLANNED PROCUREMENTS THROUGH 1998 TRANSFIX AMERICAN SELLERS BUT ISRAEL ALSO HAS BEEN A SUCCESSFUL EXPORTER IT HAS PROVIDED UPGRADED EQUIPMENT FOR THE CHILEAN AIR FORCE FOR SOME ROMANIAN JETS FOR INDIA'S MIG21S AND FOR CZECHOSLOVAK TRAINER JETS SOLD TO THAILAND IN 1992 ISRAELIS ALSO HAVE SOLD MISSILEWARNING SYSTEMS TO THE DUTCH AND GERMANS A RECENT US INDUSTRY STUDY SAYS THE ISRAELIS ARE IN AGGRESSIVE PURSUIT OF GLOBAL ELECTRONICS AND SENSOR WORK AND A BEST BET FOR SUPPLIERS SEEKING ISRAELI CONTRACTS IS TO TEAM UP WITH COMPANIES THERE THE MIDEAST IS WIDELY PERCEIVED AS THE POTENTIAL WATERLOO IN ANY US EFFORT TO RESTRAIN PROLIFERATION AS THE GULF WAR ENDED IN 1991 CONGRESS AND MR BUSH SET OUT TO CURB US ARMS SALES THERE BUT SINCE THEN THE US HAS BEEN ON A 439 BILLION SELLING SPREE ACCORDING TO THE ARMS CONTROL ASSOCIATION A WATCHDOG GROUP IN WASHINGTON WHILE MANY BIG DEALS HAVE BEEN DONE US EXPORTERS ARE STILL DRAWN BY REGIONAL PLANS TO BUY AS MUCH AS 20 BILLION IN ARMS ANNUALLY MOSHE ARENS THE FORMER ISRAELI DEFENSE MINISTER SAYS HE PROPOSED AFTER THE WAR THAT THE US CEASE ARMS SALES IN THE REGION THERE WERE NO TAKERS HE RECALLS COMMERCIAL CONSIDERATIONS ARE MORE IMPORTANT THAN THE GROWING DESTABILIZATION AS FOR THE FUTURE HE SAYS I'M NOT OPTIMISTIC AT ALL UNLESS THE US BITES THE BULLET AND GETS OTHER COUNTRIES TO GO ALONG THE EUROPEANS ARE THE MOST PROMISCUOUS THEY'LL SELL TO ALMOST ANYONE ELUSIVE SOLUTIONS TO THE PROLIFERATION PUZZLE MAY LIE IN COOPERATION BETWEEN SUPPLIER NATIONS BUT FIRST THE US MUST REPAIR ITS DAMAGED TRADE RELATIONS WITH ITS FRENCH BRITISH AND GERMAN ALLIES WHO ARE ALSO AMERICA'S MOST FORMIDABLE COMPETITORS IN THE ARMS MARKET OFFICIALS IN EUROPE AS IN CHINA AND RUSSIA SO FAR HAVE FOUND THAT THE US ONLY TALKS A BIG GAME WHEN IT COMES TO RESTRAINING EXPORTS FRANCE'S PARLIAMENT HAS VOWED TO BOOST ANNUAL WEAPONS EXPORTS SHARPLY AND PARIS NOW AIMS TO ESTABLISH AN AGENCY TO CONDUCT GOVERNMENTTOGOVERNMENT SALES AS THE US DOES EUROPEAN ARMS MAKERS ALSO ARE HEDGING THEIR BETS WITH A SPATE OF JOINT VENTURES AND ARE TEAMING UP WITH RUSSIA TO BOOST THE RELIABILITY OF THEIR JETS AND MAKE THE PLANES MORE SALABLE FRANCE'S THOMSON SA AND SNECMA AS WELL AS BRITAIN'S ROLLSROYCE PLC AND GEC MARCONI HAVE AGREED TO PROVIDE AVIONICS AND DO ENGINE WORK FOR RUSSIAN FIGHTERS AND TRAINERS WE WILL GO WHERE THE MARKET IS SAYS GERARD RENON SNECMA'S CHAIRMAN AND A FORMER SECRETARY OF STATE FOR DEFENSE IN THE DEFENSE FIELD WE CANNOT COOPERATE WITH THE AMERICANS MR RENON WHOSE COMPANY HAS A COMMERCIALENGINE PARTNERSHIP WITH GE SAYS PAST ARMSCOOPERATION FAILURES SHOW THE US DOESN'T FAVOR THE EXISTENCE OF A EUROPEAN DEFENSE INDUSTRY SENSING EUROPE'S ANXIETY THE PENTAGON UNDERSECRETARY FOR ACQUISITION JOHN DEUTCH HAS ACKNOWLEDGED THAT SOME NORTH ATLANTIC TREATY ORGANIZATION MEMBERS DON'T BELIEVE THE US GIVES ARMAMENTS COOPERATION SUFFICIENT PRIORITY HE PROPOSED THE POSSIBILITY OF COOPERATIVE MISSILEDEFENSETECHNOLOGY RESEARCH AND EFFORTS AT DEFENSE CONVERSION THERE ARE A FEW OTHER SIGNS THAT AMERICA MAY BE MOVING TOWARD A REAL NONPROLIFERATION POLICY THE US HAS OFFERED TO LET MOSCOW HELP FASHION A NEW JOINT SPACE STATION IN EXCHANGE FOR IMPROVED RUSSIAN ARMS CONTROL AND THE PENTAGON IS PRESSING A REVIEW OF FOREIGN MILITARY ASSISTANCE AS ANXIETY GROWS ON CAPITOL HILL US DEFENSE CONTRACTORS DESERVE SUPPORT SAYS SEN JEFF BINGAMAN OF THE ARMED SERVICES COMMITTEE BUT IN CERTAIN AREAS WE HAVE CONFLICTING GOALS AND ONE OF THOSE AREAS IS ARMS PROLIFERATION THE NEW MEXICO DEMOCRAT SAYS IN THE QUEST FOR SOLUTIONS RAND CORP THE CALIFORNIA THINK TANK SUGGESTS BANNING SALES OF THE MOST POTENT CONVENTIONAL WEAPONS IN A PENTAGONFUNDED STUDY RAND SINGLES OUT SUBMARINES ADVANCED SURVEILLANCE AND TARGETACQUISITION SYSTEMS TOPOFTHELINE MINES AND SELFGUIDED MISSILES SUPPLIERS AND WORKERS WOULDN'T BE HURT BY SUCH A PROHIBITION SAYS RAND NOTING THAT THE WEAPONS REPRESENT ONLY ABOUT 10 OF MIDEAST SALES I CAN'T THINK OF A SINGLE GOOD REASON TO SELL THIS STUFF SAYS KENNETH WATMAN COAUTHOR OF THE RAND REPORT AMY DOCKSER MARCUS IN TEL AVIV ADI IGNATIUS AND MARYA FOGEL IN MOSCOW JEREMY MARK IN TAIWAN STEPHEN DUTHIE IN MALAYSIA MARCUS W BRAUCHLI IN HONG KONG BRIAN COLEMAN IN BRUSSELS STEVE GLAIN IN SOUTH KOREA AND JOHN J FIALKA IN WASHINGTON CONTRIBUTED TO THIS ARTICLE THE HOME OF NINE OF THE WORLD'S 10 LARGEST ARMSMAKING COMPANIES HAS FOUND DEMAND SOARING FOR ITS JETS HELICOPTERS AND MISSILES SINCE THE PERSIAN GULF WAR AIR FORCE EQUIPMENT INCLUDING LOCKHEED'S F16 AND GLOBAL SALES LEADER MCDONNELL DOUGLAS'S F/A18 AND F15 ACCOUNTED FOR ABOUT TWOTHIRDS OF THE MORE THAN 34 BILLION IN AMERICA'S GOVERNMENTTOGOVERNMENT AGREEMENTS LAST YEAR MCDONNELL DOUGLAS'S APACHE AND UNITED TECHNOLOGIES' SIKORSKYBLACKHAWK ANCHOR THE 80 US SHARE OF HELICOPTER SALES NEARLY 8600 SURFACETOAIR MISSILES ESPECIALLY RAYTHEON'S PATRIOT OVERWHELM SALES OF OTHER WORLD SUPPLIERS BOEING LOCKHEED AND GRUMMAN PROVIDE PLANES FOR SURVEILLANCE SUBMARINE HUNTING AND OTHER USES WHILE MOST SALES HAVE FLOWED TO TRADITIONAL EUROPEAN ALLIES AND JAPAN THE LEADING BUYER WITH 9 BILLION OF US ARMS RECEIVED IN FIVE YEARS DEMAND SINCE 1990 HAS SURGED IN MIDEAST MARKETS SUCH AS ISRAEL SAUDI ARABIA EGYPT AND KUWAIT NEW LINKS HAVE FORMED WITH SECONDTIER EUROPEAN BUYERS LIKE FINLAND AND WITH SUCH DEVELOPING NATIONS AS MALAYSIA THAILAND INDONESIA THE PHILIPPINES AND THE UNITED ARAB EMIRATES BUT COMPETITION HAS INCREASED FOR SALES TO SOUTH KOREA TAIWAN AND ELSEWHERE BUDGET PRESSURES FACING BUYERS JEOPARDIZE SOME DEALS OR THE US COULD SUSPEND DELIVERIES FOR POLITICAL REASONS AS IT DID WITH HELICOPTERS AND RADARS FOR CHINA AND WITH F16S FOR PAKISTAN ITS ARMS EXPORTS APPEAR TO CONSTITUTE LESS THAN 10 OF GLOBAL DELIVERIES BUT TRACKING SALES IS DIFFICULT NEIGHBORS ARE ALARMED BY ITS INCREASING MIGHT CHINA HAS TERRITORIAL DISPUTES WITH RUSSIA INDIA JAPAN AND OTHERS AND ACCUMULATIONS OF ADVANCED FRENCH AND RUSSIAN TECHNOLOGY GIVE IT GREATER EXPORT POTENTIAL WHILE A NEED FOR CASH IS CITED AS DRIVING THEIR DEALS THE CHINESE OFTEN INCLUDE BARTER AGREEMENTS IN ARMSSALES CONTRACTS CHINA RANKS FIFTH AMONG EXPORTER NATIONS WITH 76 BILLION IN SHIPMENTS OVER FIVE YEARS AND IRAN AND OTHER NATIONS WITH TERRORIST TIES ARE HEAVY BUYERS CONCERN FOCUSES ON CHINA'S TRANSFER OF BALLISTIC MISSILES TO IRAN SYRIA AND PAKISTAN THOUGH CHINA WON'T ACKNOWLEDGE MOST SALES IRANIAN PURCHASES INCLUDE F7 AIRGUARD FIGHTERS SURFACETOAIR MISSILES AND ATTACK BOATS CHINA REPORTEDLY TOLD ISRAELI OFFICIALS LAST MAY THAT BEIJING WOULD HALT MISSILE SALES TO SYRIA IN RETURN IT WANTS ISRAEL TO HELP IT WITH AERIALREFUELING TECHNOLOGY FOR CHINESE BOMBERS PAKISTAN CHINA'S HOTTEST CUSTOMER TOOK 193 BILLION IN DELIVERIES BETWEEN 1988 AND 1992 AND HAS ORDERED MORE TANKS AND OTHER ARMORED VEHICLES AS WELL AS F7S INDIA ORDERED ANTITANK MISSILES LAST YEAR HEAVY SALES TO BANGLADESH INCLUDE A5 AND F7 FIGHTERS NAVAL VESSELS MISSILES AND LAUNCHERS CHINA HAS FOUND THAILAND AND BURMA TO BE BIG ARMS CUSTOMERS AND MAY BE ANGLING FOR A STRATEGIC ALLIANCE WITH RANGOON UK PRODUCERS ALREADY PUMMELED BY A 26 DROP IN DEFENSE JOBS OVER THREE YEARS FACE A FUTURE OF STEADY SHRINKAGE BUT LED BY BRITISH AEROSPACE THE WORLD'S NO 3 ARMS MAKER BRITISH COMPANIES EXPECT TO SELL MORE THAN 9 BILLION OF WEAPONS OVERSEAS THIS YEAR WHILE THE GOVERNMENT LIMITS MOREGENEROUS OFFSET TERMS IT STRONGLY BACKS JOINT VENTURES WITH OTHER COUNTRIES SHIPMENTS TO SAUDI ARABIA INCLUDING TORNADO FIGHTERS WILL EXPAND TANKS ATTACK BOATS AND SURFACETOAIR MISSILES HAVE BEEN BOUGHT BY OMAN THE UAE BAHRAIN AND QATAR IN SOUTHEAST ASIA BRITAIN SELLS TO MALAYSIA THAILAND AND THE PHILIPPINES IN FRANCE GOVERNMENT INCREASES IN DEFENSE SPENDING EXTRAORDINARY AMID CUTS ELSEWHERE SHOULD RESTRAIN DOMESTIC COSTS FOR WEAPONS A 26 BILLION SALE OF DASSAULT MIRAGE 20005 FIGHTERS TO TAIWAN IN 1992 WAS FRANCE'S FIRST BIG EXPORT DEAL IN YEARS GIAT INDUSTRIES SA IS SELLING 436 LECLERC TANKS AND ARMORED VEHICLES TO THE UAE ALSO A POTENTIAL MIRAGE BUYER AND THE SAUDIS ARE BUYING THREE FRIGATES FOR 4 BILLION OTHER BUYERS OF FRENCH ARMS INCLUDE CHINA MALAYSIA THAILAND THE PHILIPPINES PAKISTAN KUWAIT QATAR AND SAUDI ARABIA SHOULDERFIRED MISTRAL MISSILES ARE POPULAR AND FRANCE EXPORTED 990 SURFACETOAIR MISSILES IN 1992 SECOND ONLY TO THE US AMONG THE THREE LARGEST ARMSPRODUCING NATIONS IN WESTERN EUROPE GERMANY HAD THE LARGEST 1992 DOLLARVOLUME OF DELIVERIES BUT DAIMLERBENZ AG'S DEUTSCHE AEROSPACE UNIT HAS ANNOUNCED PLANT CLOSINGS AND POLITICAL SUPPORT FOR THE EUROFIGHTER AND OTHER PROGRAMS WITH HEAVY GERMAN PARTICIPATION IS SOFTENING GREECE AND TURKEY TOGETHER ABSORBED 28 BILLION OF GERMAN DELIVERIES IN THE FIVE YEARS THROUGH 1992 NOW INCREASED COMPETITION LEADS GERMANY TO SEEK NEW MARKETS INDONESIA IS BUYING 39 SHIPS FROM THE FORMER EAST GERMAN NAVY A UNIT OF MANNESMANN AG RECENTLY TURNED BACK US AND FRENCH RIVALS TO WIN AN ORDER FROM SWEDEN FOR 120 TANKS AND THYSSEN AG'S SHIPBUILDING UNIT AIMS FOR AUSTRALIAN AND SAUDI SALES CUSTOMERS OF SUBMARINE MAKERS SUCH AS HOWALDTSWERKE DEUTSCHE WERFT AG INCLUDE ISRAEL AND SOUTH KOREA THE SOVIET UNION'S COLLAPSE SHATTERED THE FOREIGNSALES MACHINE THAT LED WORLD MARKETS SIX YEARS AGO BUT THE NEED FOR HARD CURRENCY HAS REIGNITED RUSSIAN EFFORTS TO EXPORT ARMS AND TECHNOLOGY WITH A GOAL OF INCREASING THEM BY AT LEAST 5 BILLION ANNUALLY ONE TALLY SAYS JUST 11 OF 1992 WORLD DELIVERIES WERE ATTRIBUTABLE TO RUSSIA AND OTHER FORMER SOVIET STATES THOUGH ADMINISTRATIVE DISARRAY PRODUCES GAPS IN OFFICIAL ESTIMATES US INTELLIGENCE SERVICES SAY SUCH WEAPONS EXPORTS NOSEDIVED TO 25 BILLION IN 1992 FROM 6 BILLION IN 1991 RUSSIA COMPLAINS THAT COMPLYING WITH INTERNATIONAL ARMS EMBARGOES AGAINST LIBYA AND OTHERS HAVE COST IT 75 BILLION IN SALES LOSING SYRIAN AND IRAQI BUSINESS IS ALSO PAINFUL MOSCOW SAYS WEAPONS SALES ARE WEAKER TO AFGHANISTAN NORTH KOREA BULGARIA ANGOLA AND THE FORMER CZECHOSLOVAKIA AMONG OTHERS EAST GERMANY IS GONE TOGETHER RUSSIA SOLD 187 BILLION OF ARMS TO THOSE COUNTRIES BETWEEN 1988 AND 1992 THE CHINESE EXPECT TO ORDER 400 RUSSIAN TANKS AND TWO KILOCLASS SUBMARINES ALONG WITH T22M BACKFIRE BOMBERS AND GRUMBLE SURFACETOAIR MISSILES BEIJING ALSO WANTS TO BUILD 200 MIG31 FIGHTERS INDIA IS SHOPPING FOR UPGRADED MIGS AND BOUGHT RUSSIAN ROCKET FUEL THIS YEAR RUSSIA ALSO SOLD SUBS AND CRUISE MISSILES TO IRAN THE UAE BOUGHT 500 MISSILEEQUIPPED BMP3 ARMORED VEHICLES AND NOW WILL CHOOSE BETWEEN RUSSIAN AND WESTERN FIGHTERS AND HELICOPTERS RUSSIA IS SELLING MALAYSIA 18 MIG29RS HOPING THE SALE WILL BE AN OPENING TO KUALA LUMPUR'S ASIAN NEIGHBORS DESPITE PEACE TALKS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION THE REGION'S 22 SHARE OF INTERNATIONAL ARMS DELIVERIES WILL GROW DEMAND IS INTENSIFIED BY RELIGIOUS ZEALOTRY AND THE FEAR OF BEING OUTGUNNED TEL AVIV ARMS EXPERT ZEEV EYTAN CALLS THE PHENOMENON THE MIDDLE EAST VERSION OF KEEPING UP WITH THE JONESES SPENDING BY EGYPT AND SAUDI ARABIA HAS SLOWED BUT THOSE COUNTRIES ALONG WITH THE UAE KUWAIT AND ISRAEL ARE PLANNING TOTAL PROCUREMENTS OF AROUND 80 BILLION DURING THE NEXT FIVE YEARS WITH THE US REMAINING THE REGION'S DOMINANT SUPPLIER A POPULAR NEW PURCHASE APACHE HELICOPTERS VETERANS OF THE GULF WAR ISRAEL SEEKS NEW US FIGHTERS AND REFURBISHING PACKAGES WHICH WILL HELP ITS OWN SALES TO COUNTRIES SUCH AS INDIA AND CHILE EUROPEANS ARE GETTING ORDERS FROM THE SAUDIS AND KUWAITIS AND FROM PERIMETER NATIONS LIKE OMAN QATAR AND BAHRAIN BRITAIN HAS SOLD SAUDI ARABIA 7 BILLION OF TORNADO AND HAWK PLANES AND ARMORED VEHICLES TURKEY DABBLES IN RUSSIAN WEAPONS AND ASSEMBLES ITS OWN USDESIGNED F16S ARMORED VEHICLES SIKORSKY HELICOPTERS AND ROCKET SYSTEMS IRAN IS SPENDING 4 BILLION ANNUALLY ON CHINESE F7S SCUD MISSILES AND ATTACK BOATS PLUS RUSSIAN MIG29S AND SU24S SUBMARINES SURFACETOAIR MISSILES AND TANKS IT IS CLOSE TO BUYING RUSSIAN MAINSTAY AIRBORNE WARNING PLANES WHICH CARRY 2 BILLION PRICE TAGS IRAN'S SHIPTOSHIP MISSILES HAVE COME FROM FRANCE ITS MAINTENANCE SHIPS FROM JAPAN IRAN IRAQ AND SYRIA ARE BARRED FROM WESTERN PURCHASES BUT HAVE BOUGHT CERTAIN TECHNOLOGY THAT CAN HAVE MILITARY APPLICATIONS THE TENSIONFILLED NATIONS FROM THE SUBCONTINENT TO THE CORAL SEA CREATE A THRIVING FIGHTERJET AND WARSHIP MARKET MANY FEAR THE CHINESE MILITARY EXPANSION WITH ADDED CONCERNS ARISING FROM A US BASE CLOSING IN THE PHILIPPINES AND TERRITORIAL DISPUTES BANGLADESH IS PILING UP CHINESE ARMS THOUGH THIS PALES NEXT TO THE RUSSIAN AND CHINESE STOCKS AMASSED BY TWO MEMBERS OF THE NUCLEAR CLUB INDIA AND PAKISTAN INDIA LEADING DEVELOPINGWORLD PURCHASERS WITH 12 BILLION IN DELIVERIES IN 1992 IS INVESTING HEAVILY IN NAVAL AND AEROSPACE RESEARCH AND DEVELOPMENT RUSSIA REMAINS ITS DOMINANT SUPPLIER PAKISTAN ITS F16 PURCHASES CUT OFF BY A NUCLEARRELATED DISPUTE WITH THE US IS TURNING TO THE CHINESE FRENCH AND PERHAPS RUSSIA FOR ARMS BURMA GIVES CHINA THE LOCK ON SALES THAILAND A TRADITIONAL CUSTOMER OF BEIJING IS COURTED BY ARMSMERCHANT RIVALS US AND BRITAIN AND SPAIN SOLD IT A 228 MILLION LANDING SHIP COMING SOON A HELICOPTER COMPETITION BETWEEN US AND RUSSIAN PRODUCERS INDONESIA HAS BOUGHT GERMAN SHIPS AND MISSILES AND HAS KEEN INTEREST IN GRUMMAN SURVEILLANCE PLANES THOUGH WASHINGTON FOILED ITS EFFORT TO SELL HELICOPTERS TO IRAN MALAYSIA REMAINS A LOYAL BRITISH CUSTOMER WITH RECENT DEALS SIGNED FOR 28 HAWKS FOR 740 MILLION PLUS 600 MILLION FOR FRIGATES BUT LAST YEAR MALAYSIA AGREED TO BUY RUSSIAN MIG29RS AND MCDONNELL DOUGLAS F/A18S AS AIR FORCE REPLACEMENTS THE PHILIPPINES MAY BUY ISRAELI KFIR FIGHTERS AND HAS BOUGHT NAVAL CRAFT FROM AUSTRALIAN SPANISH AND US PRODUCERS JAPAN WHICH OUTPURCHASED ANY MIDEAST NATION IN 1992 BUYS US WEAPONS ALMOST EXCLUSIVELY WHILE NERVOUSLY WATCHING THE ARMING OF CHINA AND OTHER NEIGHBORS IT KEEPS FUTURE COMMERCIAL USES IN MIND IN ITS PURCHASES AND WINS BROAD TECHNOLOGYTRANSFER TERMS JAPANESE FSX FIGHTERS ARE MODELED ON F16S AND JAPAN MAKES A VERSION OF THE F15 IT IS LOADING UP ON GRUMMAN AND LOCKHEED SURVEILLANCE AND SUBHUNTING PLANES IS BUYING PATRIOTS AND NOW IS SEEKING ACCESS TO THE NEW THAAD US MISSILEINTERCEPTOR SYSTEM ANOTHER THAAD CANDIDATE IS SOUTH KOREA BUT INVESTIGATIONS INTO GOVERNMENT CORRUPTION HAVE CHILLED SALES THERE FOR WESTERN PRODUCERS STILL SOUTH KOREA HAS LAID THE GROUNDWORK FOR IMPORTS OF GERMAN SUBMARINES FRENCH MISSILES AND THE BEST US MISSILES SURVEILLANCE PLANES AND ARTILLERY WHILE ITS RULERS THINK THE US TOO STINGY WITH ITS MOST ADVANCED TECHNOLOGY SEOUL COPRODUCES MANY US JETS AND BORROWS AMERICAN TANK TECHNOLOGY FOR ITS OWN K1 NORTH KOREA BUYS ARMS FROM RUSSIA AND CHINA WHILE FACING GLOBAL PRESSURE TO UNVEIL ITS NUCLEARWEAPONS DEVELOPMENT IT ALSO RESOLUTELY EXPORTS SCUD MISSILES AND DEVELOPS NEW SCUDS WITH A LONGER RANGE THE REGION'S OTHER BIG BUYER TAIWAN JUST LANDED 6 BILLION OF F16S IN A DEAL THAT WILL LET THE ISLAND NATION MAKE PARTS AND PERFORM MAINTENANCE IT RECENTLY ORDERED 54 US HELICOPTERS AND PLANS TO BUY PATRIOTMISSILE TECHNOLOGY AMERICAN SURVEILLANCE PLANES USMADE FRIGATES SHIPBOARD GUNS AND MISSILES AS WELL AS OLDER PATTON TANKS ITS 26 BILLION PURCHASE OF FRENCH MIRAGE FIGHTERS MAY SOON BE FOLLOWED BY LARGE ORDERS FOR GERMAN NAVAL VESSELS ECONOMIES HAVE COOLED AND THE THREAT FROM THE EAST HAS FIZZLED BUT THERE IS STILL STRONG DEMAND FOR IMPORTS ESPECIALLY FROM THE US AND DOMINANT PRODUCERS BRITAIN FRANCE AND GERMANY THE FINNS SWEDES AND SWISS ESPECIALLY HAVE LONG SHOPPING LISTS THE CONTINENT BOUGHT 36 OF EXPORTED ARMS IN 1992 INCLUDING BOEING AWACS AIRDEFENSE RADAR PLANES FOR THE UK AND FRANCE FINLAND AND SWITZERLAND GAVE MCDONNELL DOUGLAS ORDERS FOR 98 F/A18S GERMANY A BUYER OF US MISSILES ALSO HAS CONTEMPLATED BUYING FRENCH/ITALIAN MISSILE SYSTEMS IN EUROPE AS THE WORLD OVER USED TANKS AND OTHER WEAPONS ARE SERVING AS SWEETENERS IN PACKAGE DEALS FOR NEW SYSTEMS THROUGH SAVVY OFFSET DEALINGS EUROPEANS EXACT A HEAVY PRICE FROM US PRODUCERS BRITAIN WILL GET WORK VALUED AT 130 OF THE AWACS COSTS AND THE SWISS WON 100 IN COUNTERTRADE AND OTHER OFFSET TERMS FOR THEIR 25 BILLION F/A18 BUY THE FINNISH COPRODUCTION DEAL MAKES HEAVY DEMANDS ON MCDONNELL DOUGLAS AND F/A18 SUBCONTRACTOR NORTHROP TO SELL FINNISH PAPERMAKING MACHINES AND OTHER NONDEFENSE PRODUCTS IN THE US MANY BUYERS IN EUROPE AS ELSEWHERE WANT LESS TO DO WITH MAKING WEAPONS IN A WORLD LESS INTERESTED IN WARFARE WHO WANTS COPRODUCTION OF MILITARY GOODS ASKS DANIEL CECCHIN A LONDONBASED CONSULTANT SERVING US DEFENSECOMPANY CLIENTS IN EUROPE AND ELSEWHERE BASED ON HIS TRACKING OF DEALS STRUCK BY 211 US AND EUROPEAN SELLERS HE SAYS INDIRECT CREDITS THAT SELLER COUNTRIES OWE TO BUYER NATIONS HAVE ROCKETED 31 FROM 1991 TO 1995 TO ABOUT 34 BILLION AFTER HAVING SLIPPED IN PRIOR YEARS ECONOMIC HARDSHIP RELEGATES BOTH CONTINENTS TO MOSTLY BUYING USED TANKS PLANES AND VESSELS BUT EXCEPTIONS BENEFIT ALL MAJOR ARMS SUPPLIERS ARGENTINA IS BUYING CANADIAN AND ITALIAN HELICOPTERS ALONG WITH OLDER US FIGHTERBOMBERS CHILE HAS BEEN PICKING UP FRENCH COUGAR HELICOPTERS AND SHOULDERFIRED MISTRAL MISSILES AND IS LOOKING AT ISRAELI MISSILES AND PHALCON AIRBORNEWARNING PLANES THE SWEDES WANT TO SELL GRIPEN FIGHTERS TO BOTH CHILE AND BRAZIL BRAZIL ONCE A NOTABLE EXPORTER OF EMBRAER TRAINERS AND LIGHT FIGHTERS HAS BEEN HIT HARD BY LOST SALES TO IRAQ ECUADOR AND PERU ARE PICKING UP TANKS FROM THE FORMER CZECHOSLOVAKIA AND PATROL BOATS FROM THE US WHILE URUGUAY BUYS NEW AND USED SWISS AND BRITISH WEAPONS VENEZUELA HAS BOUGHT FRENCH MIRAGE VARIANTS ALONG WITH US HARPOON MISSILES AND CLOSESUPPORT AIRCRAFT IN AFRICA WHERE RIFLES FROM RUSSIA AND OTHER COUNTRIES MAKE UP A BUSTLING TRADE IN SMALLER WEAPONS PIECEMEAL SALES OF BIGGER AND NEWER SYSTEMS OCCASIONALLY CROP UP ZAIRE HAS PURCHASED FRENCH LIGHT TANKS FOR EXAMPLE AND KENYA HAS ACQUIRED 100 OF ITS SHOULDERFIRED MISTRALS THE BRITISH HAVE TAKEN ORDERS FOR HAWK TRAINERS FROM ZIMBABWE AND SOLD 80 BATTLE TANKS TO NIGERIA FOR 282 MILLION GERMANY PLACED USED SHIPS FROM THE FORMER EAST GERMAN FLEET IN TUNISIA LAST YEAR SOUTH AFRICA IS HOME TO WEAPONSMAKER DENEL FORMERLY ARMSCOR WHICH IS THE CONTINENT'S ONLY REAL MAKER OF BIGGER WEAPONS IT PROMOTES ITS NEW ROOIVALK ATTACK HELICOPTER IN AFRICA AND ASIA AND HAS SOLD 78 OF ITS 155MM GUNS TO THE UAE 9401280007 940128 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS REBECCA MORRIS CORPORATE COUNSEL AND SECRETARY WAS NAMED CORPORATE VICE PRESIDENT AT THIS ENERGY SERVICES CONCERN MS MORRIS 48 YEARS OLD ASSUMES A NEWLY CREATED POSITION DAVID R SMITH 47 DIRECTOR OF TAX ASSUMED THE TITLE OF CORPORATE VICE PRESIDENT TAX 9401280006 940128 LETTERS TO THE EDITOR US REMAINS VIGILANT AGAINST TERRORISM CONTRARY TO FORMER AMBASSADOR L PAUL BREMER'S ASSERTION EDITORIAL PAGE JAN 14 THIS ADMINISTRATION HAS NOT NEGLECTED THE THREAT POSED BY INTERNATIONAL TERRORISM IN FACT COUNTERING THE TERRORIST THREAT IS ONE OF THE GLOBAL ISSUES THAT HAS BEEN A CENTRAL FOCUS OF THE STATE DEPARTMENT AND IT IS ONE OF MY CHIEF RESPONSIBILITIES THE ACTIONS WE HAVE TAKEN AGAINST STATESPONSORED TERRORISM INCLUDE THE FOLLOWING WE USED MILITARY FORCE TO SEND AN UNEQUIVOCAL SIGNAL TO SADDAM HUSSEIN WHEN IT BECAME CLEAR THAT IRAQ WAS BEHIND THE PLOT TO KILL FORMER PRESIDENT BUSH WE HAVE MADE CLEAR TO THE SYRIAN GOVERNMENT THAT UNTIL IT STOPS ALL SUPPORT FOR TERRORIST GROUPS IT WILL REMAIN ON THE TERRORISM LIST A DESIGNATION THAT RESTRICTS FOREIGN AID MILITARY SALES AND WORLD BANK LOANS WE ADDED SUDAN TO THIS LIST OF INTERNATIONAL PARIAHS AFTER IT PERSISTED IN ALLOWING IRANIAN AND OTHER TERRORISTS TO USE ITS TERRITORY AS A SAFE HAVEN AND TRAINING GROUND WE FOUGHT FOR AND OBTAINED TIGHTER MANDATORY SANCTIONS AGAINST LIBYA IN THE UNITED NATIONS IN THE FACE OF CONTINUED LIBYAN INTRANSIGENCE AND CULPABILITY FOR THE BOMBING OF PAN AM 103 THE US CONTINUES TO BELIEVE THAT STILL STRONGER MEASURES INCLUDING A WORLDWIDE OIL EMBARGO SHOULD BE ENACTED IF LIBYA CONTINUES TO DEFY THE INTERNATIONAL COMMUNITY WE REMAIN DETERMINED TO ENSURE THE PERPETRATORS OF THESE ACTS OF TERRORISM ARE BROUGHT TO JUSTICE THE FAMILIES OF THE VICTIMS IN THE MURDEROUS LOCKERBIE BOMBING AND OTHER ACTS OF LIBYAN TERRORISM DESERVE NOTHING LESS WE WILL CONTINUE TO WORK CLOSELY WITH OUR FRIENDS AND ALLIES TO TRACK DOWN TERRORISTS AND BRING THEM TO JUSTICE WE OFFER SPECIALIZED ANTITERRORISM TRAINING TO FRIENDLY FOREIGN COUNTRIES THAT FACE TERRORISM AT HOME FINALLY CONTRARY TO THE ASSERTION THAT WE HAVE DOWNGRADED OUR COUNTERTERRORIST EFFORT WE HAVE PROPOSED THAT THE COUNTERTERRORIST COORDINATOR'S ROLE BE ASSUMED BY AN ASSISTANT SECRETARY OF STATE AND THAT OVERSIGHT BE ASSIGNED TO A NEW UNDERSECRETARY FOR GLOBAL AFFAIRS WE WILL REMAIN COMMITTED TO MAINTAINING AN EFFECTIVE INTERNATIONAL COUNTERTERRORISM POLICY AND TO INCREASING OUR ABILITY TO ENSURE THE SAFETY OF AMERICANS AND AMERICAN INTERESTS WORLDWIDE 9401280005 940128 MARKETING & MEDIA RH MACY BEGINS MAJOR STAFF CUTS AT ITS WEST UNIT BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL IN A SWEEPING COSTCUTTING MOVE RH MACY & CO BEGAN DISMISSING EXECUTIVES AND STAFF MEMBERS OF ITS SAN FRANCISCOBASED MACY'S WEST UNIT THE DISMISSALS INVOLVE AT LEAST 415 EMPLOYEES OF THE DIVISION WHICH INCLUDES 31 MACY'S DEPARTMENT STORES AND 20 BULLOCK'S DEPARTMENT STORES THERE COULD BE SEVERAL HUNDRED MORE POSITIONS ELIMINATED THROUGH DISMISSALS AND ATTRITION THE LAYOFFS ACCORDING TO EMPLOYEES GIVEN PACKETS OUTLINING THEIR DISMISSALS INCLUDE AT LEAST 100 SELLINGFLOOR EXECUTIVES RANGING FROM SALES MANAGERS WHO ARE ESSENTIALLY ENTRYLEVEL JUNIOR EXECUTIVES ON UP THROUGH VARIOUS EXECUTIVE LEVELS THE PACKETS ALSO SAID THAT ABOUT 45 JUNIOR AND SENIOR EXECUTIVES IN MACY'S WEST OFFICE OPERATIONS WERE BEING LAID OFF APPARENTLY THE FIRINGS DON'T INVOLVE ANY SALES PEOPLE AT THE MACY STORES BUT THE DISMISSALS ALSO INCLUDE A WIDE RANGE OF STORE STAFFERS SUCH AS THOSE WHO WORK IN ALTERATIONS SECURITY WINDOW DISPLAY AS WELL AS STOCK PEOPLE GIFT WRAPPERS FITTINGROOM CHECKERS AND THOSE WHO WORK IN BRIDAL REGISTRY STILL MORE JOB REDUCTIONS ARE EXPECTED THROUGH ATTRITION BUT IT'S UNCLEAR HOW LARGE THAT REDUCTION WOULD BE IT IS ALSO UNCLEAR WHETHER SIMILAR REDUCTIONS ARE PLANNED FOR MACY'S EAST DIVISION WHICH INCLUDES 59 DEPARTMENT STORES INCLUDING THE COMPANY FLAGSHIP AT HERALD SQUARE IN NEW YORK THE FIRINGS AREN'T RELATED TO DAMAGE TO MACY STORES IN THE LOS ANGELES EARTHQUAKE BUT ARE PART OF THE COMPANY'S FIVEYEAR BUSINESS PLAN THAT THE RETAILER IS USING TO RESTORE ITS FINANCIAL STRENGTH WHILE IT OPERATES UNDER CHAPTER 11 FEDERAL BANKRUPTCY PROTECTION AGAINST CREDITORS WHILE THE COMPANY HAS SYSTEMATICALLY BEEN TRIMMING ITS WORK FORCE THIS IS CONSIDERED BY FAR THE LARGEST SINGLE REDUCTION MACY'S NEW YORKBASED CORPORATE EXECUTIVES COULDN'T BE REACHED FOR COMMENT LAST NIGHT AND CALLS TO MICHAEL STEINBERG CHAIRMAN OF MACY'S WEST UNIT WEREN'T RETURNED MACY FILED FOR BANKRUPTCY PROTECTION IN 1992 AND CURRENTLY OWES CREDITORS ABOUT 6 BILLION UNDER MYRON E ULLMAN CHAIRMAN THE CHAIN HAS BEEN SUCCESSFULLY SLASHING AWAY AT ITS ONCE PLUSH OPERATIONS THE LAYOFFS CAME AS MACY WAS BEGINNING TO TALLY DAMAGE RELATED TO THE EARTHQUAKE MACY SAID IT WILL HAVE TO COMPLETELY OR PARTLY REBUILD TWO BULLOCK'S DEPARTMENT STORES AND ONE I MAGNIN STORE IN THE LOS ANGELES AREA AS A RESULT OF LAST WEEK'S EARTHQUAKE BULLOCK'S AT NORTHRIDGE FASHION CENTER NEAR THE QUAKE'S EPICENTER WILL HAVE TO BE DEMOLISHED AND REBUILT AT A COST ESTIMATED AT MORE THAN 25 MILLION THE SHERMAN OAKS BULLOCK'S STORE THE FLAGSHIP OF THAT LOS ANGELESBASED CHAIN WAS HEAVILY DAMAGED AND WILL TAKE AT LEAST SIX MONTHS TO REBUILD THE STORE HAD BEEN EXTENSIVELY REMODELED DURING THE PAST TWO YEARS AND HAD THE SECONDHIGHEST ANNUAL SALES VOLUME OF ANY BULLOCK'S OUTLET BULLOCK'S STORES AFFECTED BY THE QUAKE CONTRIBUTE ABOUT 100 MILLION OF MACY'S TOTAL 65 BILLION IN ANNUAL SALES MACY SAID IT EXPECTS ITS REBUILDING COSTS AND ANY LOSSES INCURRED DUE TO THE QUAKE TO BE COVERED LARGELY BY INSURANCE BUT THE PROBLEMS COULD BE A DISTRACTION FOR MACY AS THE RETAILER ATTEMPTS TO PRODUCE A REORGANIZATION PLAN FOR CREDITORS IN COMING MONTHS THE COMPANY ALSO FACES UNCERTAINTY OVER THE PLANS OF FEDERATED DEPARTMENT STORES INC WHICH IS NOW A MACY CREDITOR AND WANTS TO MERGE WITH IT OTHER RETAILERS ALSO SUFFERED DAMAGE INVESTCORP'S SAKS FIFTH AVENUE PERMANENTLY CLOSED ITS WOODLAND HILLS STORE MAY DEPARTMENT STORES CO SAID SIX OF ITS ROBINSONSMAY STORES ARE CLOSED BUT WOULD BE BACK UP IN A REASONABLY SHORT PERIOD OF TIME JC PENNEY CO SAID ITS STORE AT THE NORTHRIDGE MALL WILL HAVE TO BE REBUILT AND MAY REOPEN BY SPRING 1995 CARTER HAWLEY HALE STORES INC SAID ITS NORTHRIDGE BROADWAY STORE MAY BE REBUILT AND THAT THREE OTHER STORES REMAINED CLOSED 9401280004 940114 WITH ASSAD TALK ABOUT TERRORISM BY L PAUL BREMER III WHEN HE MEETS WITH SYRIAN PRESIDENT HAFEZ ASSAD ON SUNDAY IN GENEVA PRESIDENT CLINTON WILL HAVE A LOT TO TALK ABOUT THE TEMPTATION WILL BE FOR HIM TO CONCENTRATE ON THE MIDDLE EAST PEACE PROCESS THAT WILL BE MR ASSAD'S PREFERENCE BUT GLOBAL TERRORISM SHOULD BE HIGH ON MR CLINTON'S LIST FOR WHILE THERE HAS BEEN A RELATIVE DECLINE IN ANTIAMERICAN TERRORISM THE WORLDWIDE TERRORIST INFRASTRUCTURE SUPPORTED BY STATES SUCH AS SYRIA LIBYA AND IRAN IS ALIVE AND WELL THE CLINTON ADMINISTRATION HAS NEGLECTED THE TERRORIST THREAT WITH OUR PUBLIC OFFICIALS PAYING ONLY LIP SERVICE TO THE PROBLEM THE STATE DEPARTMENT OFFICE CHARGED WITH CONDUCTING COUNTERTERRORIST POLICY HAS BEEN DOWNGRADED AND GUTTED IT HAS LOST 40 OF ITS STAFF A CURIOUS PHENOMENON WHEN LAST YEAR'S BOMBING OF THE WORLD TRADE CENTER UNDERSCORED THE THREAT OF MIDEAST TERRORISM FOR MANY OF US WHO HAVE BEEN INVOLVED IN THE STRUGGLE AGAINST TERRORISM THIS IS OMINOUS IN THE PAST PROGRESS IN THE FIGHT AGAINST TERRORISM DEPENDED ON VIGOROUS VISIBLE AND COURAGEOUS US LEADERSHIP WITHOUT SUCH LEADERSHIP NOW WE WILL SOON LOSE MORE AMERICAN LIVES THE MEETING WITH MR ASSAD PROVIDES MR CLINTON AN OPPORTUNITY TO TALK STRAIGHT AND TOUGH TO ONE OF THE MOST VISIBLE TERRORIST LEADERS THE ONLY ONE WITH WHOM WE HAVE DIPLOMATIC RELATIONS THAT WOULD SIGNAL TO MR ASSAD AND THE WORLD THAT THE US IS ONCE AGAIN SERIOUS ABOUT THE FIGHT SYRIA CONTINUES TO PLAY CONGENIAL HOST TO NUMEROUS RADICAL TERRORIST GROUPS MORE THAN A DOZEN TERRORIST TRAINING CAMPS COMPLETE WITH SHOOTING RANGES OBSTACLE COURSES AND DUMMY HOUSES FOR BOMBING PRACTICE STILL OPERATE FREELY IN LEBANON UNDER THE PROTECTIVE EYE OF THE SYRIAN ARMY OUR GOVERNMENT KNOWS THEY ARE THERE THE SYRIAN GOVERNMENT KNOWS THEY ARE THERE YET DESPITE REPEATED REQUESTS BY PREVIOUS AMERICAN ADMINISTRATIONS MR ASSAD DOES NOTHING NOR HAS LIBYA MENDED ITS WAYS IN DECEMBER COL MOAMMAR GADHAFI HOSTED AN INTERNATIONAL TERRORIST GATHERING ATTENDED BY RADICAL PALESTINIAN AND OTHER OUTLAW GROUPS NOT SINCE JOSEPH STALIN'S LAST CABINET MEETING HAS THERE BEEN SUCH A GATHERING OF UNSAVORY CHARACTERS DOZENS OF TERRORIST GROUPS STILL HAVE LARGE MODERN TRAINING CAMPS THROUGHOUT LIBYA YEARS OF DIPLOMATIC EFFORTS AND FLACCID ECONOMIC SANCTIONS HAVE FAILED TO GET THE LIBYAN LEADER TO TURN OVER THE PAN AM FLIGHT 103 BOMBING SUSPECTS MEANWHILE UNDER ITS SOCALLED MODERATE PRESIDENT ALI AKBAR HASHEMI RAFSANJANI IRAN MURDERS ITS OPPONENTS WHEREVER IT CAN HUNT THEM DOWN THE GOVERNMENT RECENTLY RECONFIRMED ITS DEATH SENTENCE AGAINST AUTHOR SALMAN RUSHDIE IRAN CONTINUES TO SUPPORT THE EXTREMIST TERRORIST MOVEMENT HEZBOLLAH RESPONSIBLE FOR KIDNAPPING AMERICANS IN LEBANON AND ALSO BACKS RADICAL GROUPS IN SUDAN AND ALGERIA OUR ALLIES PROP UP AND APPEASE IRAN'S EXTREMIST THEOCRACY OVER THE PAST FIVE YEARS GERMANY'S EXPORTS TO IRAN HAVE QUINTUPLED AND JAPAN'S HAVE MORE THAN TRIPLED TWO WEEKS AGO THE FRENCH GOVERNMENT RETURNED TO IRAN TWO IRANIAN TERRORISTS ARRESTED FOR MURDERING A REGIME OPPONENT IN SWITZERLAND CALLOUSLY BREAKING PARIS'S PROMISE TO EXTRADITE THE SUSPECTS TO SWITZERLAND IN ALL THREE CASES SYRIA LIBYA AND IRAN STRONG AMERICAN LEADERSHIP AGAINST TERRORIST NETWORKS IS URGENTLY NEEDED MR ASSAD PROBABLY CALCULATES THAT AMERICA IS SO EAGER TO INVOLVE SYRIA IN THE PEACE PROCESS THAT IT WILL IGNORE HIS SUPPORT OF TERRORISM BUT MR CLINTON IS IN A STRONGER NEGOTIATING POSITION THAN PREVIOUS US PRESIDENTS WHO HAVE TRIED TO WRESTLE WITH MR ASSAD THE WEAKENED ASSAD GOVERNMENT NO LONGER UNDER SOVIET SPONSORSHIP NEEDS WESTERN CREDITS AND ECONOMIC ASSISTANCE MR CLINTON SHOULD INSIST THAT SYRIA WILL NEVER ENJOY NORMAL RELATIONS WITH WASHINGTON UNTIL DAMASCUS CLEARLY AND PUBLICLY RENOUNCES TERRORISM MOREOVER MR CLINTON SHOULD DEMAND THAT SYRIA BEGIN EXPELLING THE TERRORISTS LIVING IN SYRIA AND CLOSING DOWN TERRORIST TRAINING CAMPS THE SYRIAN LEADER MAY ASSERT THAT DAMASCUS HASN'T DIRECTLY ENGAGED IN TERRORISM FOR SEVERAL YEARS AND THAT IT HAS HELPED RESTRAIN THE ACTIVITIES OF THE GROUPS UNDER ITS CONTROL MR CLINTON SHOULD REMIND HIM THAT AT LEAST TWO OF THESE DAMASCUSBASED GROUPS HAVE PUBLICLY ACKNOWLEDGED RESPONSIBILITY FOR TERRORIST ATTACKS KILLING ISRAELI CIVILIANS IN THE PAST THREE MONTHS THE POPULAR FRONT FOR THE LIBERATION OF PALESTINE AND THE POPULAR FRONT FOR THE LIBERATION OF PALESTINE GENERAL COMMAND WITH RESPECT TO LIBYA THE US SHOULD MOVE TO EXPAND INTERNATIONAL SANCTIONS AGAINST TRIPOLI HERE TOO OUR OBJECTIVES SHOULD BE BOLD A FORMAL RENUNCIATION OF TERRORISM BY COL QADHAFI THE EXTRADITION OF THE PAN AM SUSPECTS AND THE EXPULSION OF ALL TERRORIST GROUPS FROM LIBYA WE MUST GET ACTION NOT PROMISES FROM HIM NINETYEIGHT PERCENT OF LIBYA'S FOREIGN EXCHANGE COMES FROM OIL WITH GERMANY ITALY AND SPAIN PURCHASING TWOTHIRDS OF IT NOW WOULD BE A GOOD TIME TO IMPOSE A COMPLETE OIL EMBARGO ON LIBYA SINCE THE MARKET IS IN A GLUT SALES LOST BY LIBYA COULD BE MADE UP BY FRIENDLY NATIONS SUCH AS SAUDI ARABIA KUWAIT AND VENEZUELA IF A COMPLETE EMBARGO AGAINST LIBYA IS POLITICALLY UNFEASIBLE OUR GOVERNMENT SHOULD INSIST THAT THE UN SECURITY COUNCIL IMPOSE ON LIBYA A SYSTEM SIMILAR TO THAT IMPOSED ON IRAQ ALL PROCEEDS FROM LIBYAN OIL SALES COULD BE PUT INTO A UNADMINISTERED ESCROW ACCOUNT TO BE USED TO PAY FAMILIES OF TERRORISM VICTIMS AND TO REPAY LIBYAN DEBTS CONCERNING IRAN WE MUST TELL OUR WESTERN ALLIES THAT WE ABHOR THEIR FINANCIAL DEALINGS WITH THE MURDEROUS REGIME IN TEHRAN THE TIMING IS GOOD BECAUSE IRAN'S ECONOMY IS A SHAMBLES IT CANNOT PAY ITS DEBTS AND WITHOUT THE SUPPORT OF WEST EUROPEAN CREDIT AGENCIES IT FACES DEFAULT THE WEST HOLDS THE KEY TO THE FINANCIAL RELIEF OF IRAN THAT SUPPORT SHOULD NOT BE FORTHCOMING THESE ARE HARD MESSAGES AND HARD MEASURES BUT SUCH LANGUAGE IS THE ONLY LANGUAGE TERRORISTS UNDERSTAND OUR EXPERIENCE OVER THE PAST DECADE MAKES CLEAR THAT WITHOUT A RESOLUTE PUSH FROM TOP US OFFICIALS COUNTERTERRORIST POLICIES WILL NOT BE EFFECTIVE MR BREMER WAS US AMBASSADORATLARGE FOR COUNTERTERRORISM FROM 1986 TO 1989 SEE RELATED LETTER LETTERS TO THE EDITOR US REMAINS VIGILANT AGAINST TERRORISM WSJ JAN 28 1994 9401140077 YY94 MM01 9401280003 940128 RENO'S DEPUTY RESIGNS POST AT JUSTICE UNIT ATTORNEY GENERAL IS SEEKING TO BOLSTER MANAGEMENT AS CRIME ISSUE HEATS UP BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT'S NO 2 OFFICIAL PHILIP HEYMANN RESIGNED AS ATTORNEY GENERAL JANET RENO SOUGHT TO BOLSTER THE AGENCY'S MANAGEMENT OF THE INCREASINGLY HOT CRIME ISSUE CITING A LACK OF PERSONAL CHEMISTRY MS RENO AND MR HEYMANN JOINTLY ANNOUNCED HIS RESIGNATION AS DEPUTY ATTORNEY GENERAL IN A LETTER TO PRESIDENT CLINTON MR HEYMANN WROTE THE ATTORNEY GENERAL HAS CONCLUDED THAT OUR OPERATIONAL AND MANAGEMENT STYLES ARE TOO DIFFERENT FOR US TO FUNCTION FULLY EFFECTIVELY AS A MANAGEMENT TEAM AT THE DEPARTMENT OF JUSTICE THAT IS A JUDGMENT I SHARE THE DEPARTURE WHICH MR HEYMANN SAID WILL BE EFFECTIVE UPON THE AVAILABILITY OF HIS SUCCESSOR APPEARED TO REFLECT A DESIRE BY MS RENO BOTH TO STRENGTHEN MANAGEMENT OF THE DEPARTMENT WHICH REPEATEDLY HAS SUFFERED HIGHLEVEL PERSONNEL PROBLEMS AND TO PREPARE THE ADMINISTRATION TO PLAY A BIGGER ROLE IN CONGRESSIONAL DELIBERATIONS ON PENDING ANTICRIME LEGISLATION LAST YEAR THE DEPARTMENT STAYED LARGELY ALOOF AS SWEEPING ANTICRIME BILLS STARTED WORKING THEIR WAY THROUGH THE HOUSE AND SENATE MS RENO ALSO APPEARS EAGER TO BOLSTER HER STANDING WITH THE WHITE HOUSE WHICH AT TIMES HAS QUESTIONED HER LOYALTY MR HEYMANN'S RESIGNATION TOOK PRESIDENT CLINTON BY SURPRISE SAID ONE ADMINISTRATION OFFICIAL GEORGE STEPHANOPOULOS A SENIOR ADVISER TO MR CLINTON SAID MR HEYMANN IS MORE OF A POLICY GUY AND LESS INTO DOING THE ADMINISTRATIVE WORK THEY NEEDED WITH SO MUCH GOING ON THEY JUST NEEDED A BETTER FIT MS RENO WHO SPENDS A LOT OF HER TIME MAKING SPEECHES AROUND THE COUNTRY RATHER THAN RUNNING THE DEPARTMENT NEEDS A DEPUTY WHO IS A SOLID ADMINISTRATOR A ROLE MR HEYMANN DIDN'T FILL TO HER SATISFACTION IN MEETINGS SHE WOULD SOMETIMES BECOME VERY DEMONSTRATIVE EMPHATIC ABOUT HER DESIRE THAT MR HEYMANN GET THINGS DONE IN THE STYLE SHE PREFERRED SAID A DEPARTMENT OFFICIAL JANET REALLY WANTED A HANDSON APPROACH TO RUNNING THE DEPARTMENT AND PHIL WAS MORE INCLINED TO DELEGATE AND IN SOME CASES DELEGATE TO CAREER PEOPLE EXPLAINED THIS OFFICIAL JANET WAS UNCOMFORTABLE WITH THAT MS RENO DELEGATED MANY ISSUES TO MR HEYMANN OFTEN TELLING REPORTERS THAT SHE HAD ASKED HIM TO PREPARE REPORTS ON VARIOUS ISSUES SUCH AS MANDATORY MINIMUM SENTENCES THOSE REPORTS SOMETIMES WERE LATE AND AT LEAST TWO ADMINISTRATION OFFICIALS REFERRED TO THE DEPUTY'S OFFICE AS A BLACK HOLE A LAWENFORCEMENT OFFICIAL SAID MS RENO WAS BOTHERED BY THE TIME IT TOOK MR HEYMANN TO GET HER INFORMATION ON ABORTIONCLINIC VIOLENCE FOR EXAMPLE AT THE NEWS CONFERENCE HE COUNTERED CRITICISM THAT HE WAS SLOW TO GET THINGS DONE SAYING I HONESTLY DON'T THINK THAT THINGS HAVE STUCK IN THE DEPUTY'S OFFICE HE RELEASED A LIST OF A DOZEN RECENT ACCOMPLISHMENTS IN THE DEPUTY'S OFFICE THOUGH HIS RESIGNATION WAS A SURPRISE SOME WHO KNOW HIM SAID THEY SAW SIGNS HE WAS UNHAPPY MR HEYMANN 64 YEARS OLD WAS QUIET IN MEETINGS SEEMINGLY DISCOURAGED CERTAINLY NOT HAVING FUN AT A MEETING LAST WEEK OF US ATTORNEYS FROM AROUND THE COUNTRY MR HEYMANN WAS MADE THE BUTT OF A JOKE BY ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHO NOMINALLY RANKS BELOW HIM BUT ACTUALLY HOLDS CONSIDERABLE INFLUENCE BECAUSE HE IS A PERSONAL FRIEND OF PRESIDENT CLINTON WHEN SOMEONE RAISED A QUESTION ABOUT THE ANTICRIME BILL AN ISSUE FOR WHICH THE DEPUTY IS RESPONSIBLE MR HUBBELL WHO OFFICIALLY HANDLES CIVIL MATTERS SAID YOU TAKE IT PHIL AND I'LL CORRECT YOU MEMBERS OF CONGRESS HAVE CRITICIZED THE DEPARTMENT FOR ITS LACK OF INVOLVEMENT IN SHAPING ANTICRIME LEGISLATION MR STEPHANOPOULOS SPEAKING ON BLACK ENTERTAINMENT TELEVISION'S LEAD STORY SAID MR HEYMANN'S DEPARTURE WOULDN'T AFFECT ADMINISTRATION EFFORTS TO GET AN ANTICRIME BILL PASSED MS RENO WILL TAKE CHARGE HE SAID WE EXPECT A FULLSCALE EFFORT THERE THE DEPARTMENT'S PERSONNEL PROBLEMS BEGAN RIGHT AT THE START OF THE CLINTON ADMINISTRATION WHEN THE PRESIDENT'S FIRST TWO CHOICES FOR ATTORNEY GENERAL WITHDREW ACCORDING TO A CONGRESSIONAL RESEARCH SERVICE REPORT RELEASED BY REP WILLIAM CLINGER R PA THE ADMINISTRATION STILL HAS FAILED TO FILL MORE THAN ONETHIRD OF THE TOP POSITIONS AT THE AGENCY INCLUDING FOUR OF 11 ASSISTANT ATTORNEY GENERAL SLOTS MOREOVER WHITE HOUSE AIDES COMPLAIN PRIVATELY ABOUT MS RENO'S PERFORMANCE SEVERAL SENIOR AIDES SAY SHE ISN'T ENOUGH OF A TEAM PLAYER AT ONE RECENT MEETING IN WHICH MS RENO REFERRED TO HER VIEWS IN THE FIRST PERSON SINGULAR A WHITE HOUSE AIDE ADMONISHED HER SAYING THE CLINTON ADMINISTRATION WORKS AS A TEAM AFTER THE ATTORNEY GENERAL LEFT THE ROOM THE WHITE HOUSE STAFFERS GAVE EACH OTHER HIGH FIVES DESPITE COMPLAINTS ABOUT MR HEYMANN'S MANAGEMENT STYLE MS RENO WAS QUICK TO PRAISE HIM YESTERDAY FOR MAKING IMPROVEMENTS IN NUMEROUS AREAS INCLUDING HIS EFFORTS TO INCREASE COOPERATION AMONG FEDERAL LAWENFORCEMENT AGENCIES AND TO RUN THE DEPARTMENT'S ANTIVIOLENCE INITIATIVE THEY BOTH INSISTED THEY HAVEN'T ANY SIGNIFICANT PHILOSOPHICAL OR POLICY DIFFERENCES BUT AS HIS WORK LOAD CONTINUED TO PILE UP MR HEYMANN TOLD AN ASSOCIATE THAT HIS OFFICE WAS DEALING WITH 135 ISSUES THE DEPUTY BEGAN TO FEEL MS RENO'S DISAPPROVAL FOR NOT HAVING REPORTS SHE WANTED WHEN SHE WANTED THEM ONE DEPARTMENT OFFICIAL SAID I THINK INCREASINGLY HE FELT HE WAS DISAPPOINTING HER THAT HE WASN'T PRODUCING WHAT SHE NEEDED THE OFFICIAL SAID IT'S NO FUN WORKING FOR PEOPLE WHO BELIEVE YOU AREN'T GETTING THE JOB DONE BEFORE MR HEYMANN WAS APPOINTED MR RUFF WAS CONSIDERED FOR THE DEPUTY'S JOB BUT WAS REJECTED AT LEAST IN PART BECAUSE HE HADN'T PAID SOCIAL SECURITY TAXES FOR HIS 71YEAROLD CLEANING WOMAN RELATED PROBLEMS ALSO SCUTTLED MR CLINTON'S FIRST TWO CHOICES FOR ATTORNEY GENERAL BUT SINCE THEN FAILURE TO PAY TAXES FOR DOMESTIC HELP HASN'T HINDERED THE APPOINTMENT OF OTHER NOMINEES AND THE NEW CLIMATE MAY NOW ALLOW MR RUFF'S SELECTION PAUL M BARRETT AND JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9401280002 940104 REVIEW & OUTLOOK EDITORIAL POSTAL BULLY THE NEXT TIME YOU USE FEDERAL EXPRESS OR ANOTHER OVERNIGHT SHIPPING SERVICE YOU MAY BE COMMITTING A FEDERAL CRIME A LITTLEKNOWN LAW REQUIRES THAT FOR YOU TO USE A PRIVATE CARRIER TO DELIVER MAIL YOU MUST PAY AT LEAST TWICE THE COST OF A FIRSTCLASS STAMP AND YOUR SHIPMENT MUST BE CONSIDERED URGENT THE POSTAL SERVICE SAYS THAT MEANS YOUR SHIPMENT MUST REQUIRE AN IMMEDIATE RESPONSE EFFECTIVELY THE SAME BUSINESS DAY IT'S RECEIVED IF IT DOESN'T YOU ARE A LAWBREAKER ALL THIS WOULD BE MERELY AMUSING EXCEPT THAT THE FEDS ARE ACTUALLY ENFORCING THIS ABSURD RULE THE LAW ALLOWS THE US POSTAL SERVICE TO AUDIT MAILINGS TO SEE IF THEY ARE INDEED URGENT TYPICALLY POSTAL INSPECTORS WILL SHOW UP IN THE SHIPPING ROOM OF A COMPANY FLASH THEIR BADGES AND ASK TO EXAMINE THE RECORDS INSPECTORS RECENTLY VISITED EQUIFAX AN ATLANTA CREDIT REPORTING AGENCY AND FOUND THAT IT WAS USING OVERNIGHT SERVICES FOR NONURGENT MAIL IT PROMPTLY FINED EQUIFAX 30000 THE AMOUNT THE POSTAL SERVICE WOULD HAVE COLLECTED IF THE MATERIALS HAD BEEN SENT FIRST CLASS EQUIFAX ISN'T ALONE IN THE PAST YEAR 12 COMPANIES INCLUDING GTE OF STAMFORD CONN HAVE BEEN AUDITED AND ASKED TO COUGH UP 312000 IN WHAT THE USPS CALLS RECOVERED REVENUE THE POSTAL SERVICE DEFENDS ITS AUDITS AND POINTS OUT THAT IT COULD EVEN PROSECUTE VIOLATORS BUT MAGNANIMOUSLY CHOOSES NOT TO NATURALLY OVERNIGHT SHIPPING COMPANIES ARE FURIOUS AT WHAT THEY CONSIDER BULLYING TACTICS BY A COMPETITOR WITH THE POWER TO INSPECT AND FINE ITS RIVALS A DOYLE CLOUD A FEDERAL EXPRESS VICE PRESIDENT TOLD US THAT SEARCHES OF COMPANY SHIPPING ROOMS ARE ILLEGAL AND THAT HE HAS URGED HIS CUSTOMERS NOT TO PAY ANY FINES THE POST OFFICE IS USING ITS BADGETOTING POLICEMEN TO INTIMIDATE CUSTOMERS INTO USING ITS PRODUCT HE TOLD US HE SAYS THE POSTAL SERVICE HAS EVEN LAUNCHED AN AUDIT OF THE FEDERAL GOVERNMENT'S OWN OVERNIGHT SHIPMENTS TO DETERMINE IF UNCLE SAM'S USE OF FEDERAL EXPRESS IS LAWFUL OF COURSE ONE REASON THE GOVERNMENT USES FEDERAL EXPRESS IS THAT THE POSTAL SERVICE'S TWODAY PRIORITY MAIL SERVICE FAILS 23 OF THE TIME THE POSTAL SERVICE DENIES HARASSING ANYONE JOHN BRUGGER OF THE POSTAL INSPECTION SERVICE CALLS MR CLOUD'S CHARGES NONSENSE AND SAYS IT INSPECTS A COMPANY'S SHIPMENTS ONLY AFTER SECURING ITS VOLUNTARY COOPERATION OF COURSE WE DOUBT MANY HAPLESS SHIPPING CLERKS OBJECT OR CALL A LAWYER WHEN THE FEDERALES SHOW UP IN A COMPANY'S MAIL ROOM ASKING TO SEARCH SENATOR PAUL COVERDELL OF GEORGIA HAS INTRODUCED A BILL TO PREVENT THE POSTAL SERVICE FROM FINING ANYONE WHO USES A PRIVATE CARRIER THAT'S FINE BUT WE'D GO FURTHER AND REPEAL THE PRIVATE EXPRESS STATUTES WHICH WERE PASSED IN 1872 TO GIVE THE GOVERNMENT A MONOPOLY OVER MAIL IN AN ERA WHEN THE FAX MACHINE COMPUTER MODEMS AND OVERNIGHT CARRIERS ARE ROUTINELY USED TO BYPASS THE SLUGGISH POSTAL SERVICE IT IS ABSURD TO CONSIGN THE REST OF THE POPULATION TO THE CLUTCHES OF AN INEFFICIENT GOVERNMENT MONOPOLY NEW ZEALAND HAS LARGELY PRIVATIZED ITS POSTAL SERVICE SERVICE AND EFFICIENCY HAVE BOTH IMPROVED BRITAIN ALSO HAS PRIVATIZATION PLANS IN THE WORKS MEANWHILE THE US POSTAL SERVICE ANNOUNCED PLANS LAST MONTH TO RAISE THE PRICE OF A FIRSTCLASS STAMP TO 33 CENTS FROM 29 CENTS WE WOULDN'T BE SURPRISED IF SOME OF THAT EXTRA REVENUE PAID SUBSIDIZES EVEN GREATER SNOOPING AROUND COMPANIES WHOSE ONLY OFFENSE IS A DESIRE TO HAVE THEIR MAIL ARRIVE ON TIME SEE RELATED LETTERS LETTERS TO THE EDITOR BULLY BEAT US BUT WE SURVIVED WSJ JAN 20 1994 SEE RELATED LETTER LETTERS TO THE EDITOR URGENCY IS PRESUMED IF RATE IS DOUBLED WSJ JAN 28 1994 9401040073 9401200179 YY94 MM01 9401280001 940128 SCORING PLAY AFTER THE SUPER BOWL OF NFL FAMILY FEUDS WAYNE HUIZENGA WINS BLOCKBUSTER KING GOT A DEAL ON THE MIAMI DOLPHINS FROM SQUABBLING ROBBIES SOFTWARE' FOR THE TV MARKET BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL AS A 10YEAROLD KEVIN ROBBIE WAS THE ENVY OF EVERY KID IN AMERICA A BALLBOY FOR THE UNDEFEATED 1972 MIAMI DOLPHINS A PAL OF THE LEGENDARY LARRY CSONKA AND BOB GRIESE AS A 31YEAROLD HE IS CAUGHT IN THE LIVING NIGHTMARE OF A BATTLE WITHIN THE FAMILY BUSINESS A BROTHER FIRED A MOTHER SUED A NEVERENDING NOPADS SCRIMMAGE AMONG SIBLINGS MR ROBBIE HAS KNOWN THE TWO EXTREMES FOR ONE AND THE SAME REASON HE IS THE SON OF DOLPHINS FOUNDER AND LONGTIME OWNER JOE ROBBIE UPON HIS DEATH IN 1990 JOE ROBBIE LEFT BEHIND ONE OF THE NATIONAL FOOTBALL LEAGUE'S STRONGEST FRANCHISES COACHED BY DON SHULA TO MOST OF HIS RECORDSETTING 327 WINS HE ALSO LEFT A WILL THAT WOULD DRAG THE TEAM DOWN INTO A QUAGMIRE WHEN THE ROBBIES SOLD THE DOLPHINS TO VIDEOSTORE MOGUL H WAYNE HUIZENGA FOR 138 MILLION THIS WEEK THE TEAM FETCHED LESS THAN AN NFL EXPANSION ENTRY INDEED BECAUSE THE TRANSACTION NETTED 4 MILLION LESS THAN ANOTHER BIDDER'S OFFER AND WAS RUSHED TO COMPLETION IT MAY SPARK YET ANOTHER INTRAFAMILY LEGAL WAR IT'S POSSIBLE SAYS KEVIN ROBBIE SPEAKING FOR HIS FACTION WE FEEL LIKE WE COULD HAVE GOTTEN MORE THE MIAMI DOLPHINS' STORY IS A REMINDER THAT FOR ALL THE GRANDEUR OF SUNDAY'S SUPER BOWL PRO FOOTBALL IS REALLY A COLLECTION OF SMALL BUSINESSES A TYPICAL NFL TEAM GROSSES 50 MILLION TO 60 MILLION ANNUALLY WITH THE EXCEPTION OF THE GREEN BAY PACKERS THEY ARE PRIVATELY HELD AND THUS SUBJECT TO BEING RUN IN HIGHLY QUIRKY WAYS THE DOLPHINS ARE ALSO TYPICAL OF AN ENDANGERED SPECIES THROUGHOUT PRO SPORTS THE FAMILYRUN MOMANDPOP FRANCHISE JOE ROBBIE FOR WHOM THE DOLPHINS WERE A LIVELIHOOD STOOD FOR YESTERDAY WAYNE HUIZENGA FOR WHOM THE DOLPHINS ARE JUST ANOTHER PIECE OF SHOWBIZ SOFTWARE STANDS FOR TOMORROW THIS IS THE THIRD PRO SPORTS FRANCHISE HE HAS ACQUIRED IN THE PAST THREE YEARS THOUGH HIS CONTROL OF THE FLORIDA MARLINS BASEBALL AND FLORIDA PANTHERS HOCKEY MAY RUN HIM AFOUL OF THE NFL'S RULES AGAINST CROSSOWNERSHIP MEANWHILE BLOCKBUSTER ENTERTAINMENT CORP OF WHICH HE IS CHAIRMAN AND CHIEF EXECUTIVE HAS GONE FROM JUST RENTING MOVIES TO MAKING THEM VIA ITS ACQUISITION OF REPUBLIC PICTURES AND HIS SIGHTS ARE NOW SET ON DEVELOPING A 2300ACRE THEMEPARK AND SPORTS COMPLEX JUST NORTH OF MIAMI IN ADDITION BLOCKBUSTER HAS AGREED TO MERGE WITH VIACOM INC AND JOINED IN VIACOM'S BID FOR PARAMOUNT COMMUNICATIONS INC WAYNE IS A BIG BELIEVER IN THE POWER OF ENTERTAINMENT PROGRAMING AND HE'S DEEPLY COMMITTED TO SOUTH FLORIDA SAYS RUSSELL GOLDSMITH REPUBLIC PICTURES' CHAIRMAN YOU PUT THAT ALL TOGETHER AND IT GETS VERY INTERESTING THE WRENCHING CHANGEOVER FROM YESTERDAY TO TOMORROW WAS PERHAPS INEVITABLE FROM THE MOMENT OF MR ROBBIE'S DEATH UNTIL THEN THERE HAD BEEN NO DOUBT ABOUT THE DOLPHINS' BOSS OR COURSE FROM THE MOMENT HE PUT UP 65000 FOR THE TEAM IN 1966 TO THE DAY HE DIED IN JANUARY 1990 AT AGE 73 MR ROBBIE WAS AN AUTOCRAT DON SHULA ONCE THREATENED TO PUNCH HIM OUT FOR HUMILIATING HIM IN FRONT OF FRIENDS VERY FEW PEOPLE LOVED HIM BUT EVERYBODY RESPECTED HIM SAYS NORMAN BRAMAN THE PHILADELPHIA EAGLES' OWNER AND A MIAMI RESIDENT HE WAS THE ULTIMATE WINNER BUT LIKE MANY SEATOFTHEPANTS ENTREPRENEURS HE WAS AN OVERREACHER MR ROBBIE'S LAST MAJOR ACT BUILDING A 110 MILLION STADIUM WITH PRIVATE FINANCING SADDLED HIM WITH HUGE DEBTS HE REACHED OUT FOR AN INVESTOR IN JOE ROBBIE STADIUM TO SHARE THAT LOAD AND FOUND MR HUIZENGA EVEN ON HIS DEATHBED HOWEVER MR ROBBIE WAS A TOUGH CUSTOMER HE REFUSED TO GIVE MR HUIZENGA MORE THAN A 49 INTEREST AND THEIR TALKS COLLAPSED IN DECEMBER 1989 MR ROBBIE DIED SOON THEREAFTER LEFT CONTROL OF THE TEAM TO A TRUST AND NAMED THREE OF HIS NINE CHILDREN AS TRUSTEES TIM THEN 34 DAN THEN 28 AND JANET THEN 43 THEY PROMPTLY MADE THE DEAL WITH MR HUIZENGA THAT THEIR FATHER WOULDN'T A 50 STADIUM INTEREST AND A 15 STAKE IN THE TEAM MR HUIZENGA IN ADDITION GOT AN OPTION TO BUY ANOTHER 10 OF THE DOLPHINS BASED ON THEIR 1990 VALUATION OF 100 MILLION AND THE RIGHT TO MATCH ANY FUTURE OFFER FOR THE ROBBIES' STOCK THEY PANICKED SAYS DEBORAH OLSON ONE OF THE OTHER SIBLINGS THE TEAM WAS HEAVILY IN DEBT AND THIS WAS QUICK CASH BUT IT WAS DONE WITHOUT ANALYSIS MRS OLSON THREE OTHER SIBLINGS AND THEIR MOTHER ELIZABETH TRIED TO BLOCK THE TRANSACTION BUT IT WENT THROUGH AND THE FAMILY'S BLOOD FEUD WAS ON BY JULY 1990 THE THREE CONTROLLING CHILDREN HAD FIRED A DISSIDENT BROTHER MIKE FROM HIS EXECUTIVE VICE PRESIDENT POST ELIZABETH ROBBIE PUBLICLY SCOLDED THE THREE VIA FAXES TO REPORTERS THEN IN MARCH 1991 SHE DID A LOT MORE SHE FILED HER WIDOW'S ELECTION TO CLAIM THE 30 OF HER HUSBAND'S ESTATE THAT SHE WAS DUE UNDER FLORIDA LAW THE AIM WAS TO BREAK THE TRUST AND THE TRUSTEES' HOLD ON THE DOLPHINS THE WAR OF THE INS VS THE OUTS ESCALATED WITH THE FAMILY EVENLY SPLIT FOUR CHILDREN SIDING WITH THEIR MOTHER AND TWO OTHERS SIDING WITH THE THREE TRUSTEES WHEN THE DOLPHINS THREW SOCIAL EVENTS MRS ROBBIE WASN'T INVITED WHILE THE DOLPHINS PLAYED ONE GAME IN A DOWNPOUR DISSIDENT SIBLING DIANE TRULY WAS BARRED FROM THE COMFORT OF THE ROBBIES' OWNERS BOX AND HAD TO WATCH SOAKED IN THE STANDS WHEN DAD DIED THE THREE TRUSTEES BECAME A CLOSED SOCIETY SAYS MS TRULY 50 THE ELDEST ROBBIE CHILD POWER AND GLORY AND MONEY WENT TO THEIR HEADS AND CORRUPTED THEIR VALUES TIM ROBBIE THE DOLPHINS' PRESIDENT DENIES IT WHEN YOU COME FROM A BIG FAMILY THERE ARE A LOT OF DIFFERENCES OF OPINION AND IT'S INEVITABLE HE SAYS I THINK THERE WAS SIMPLY RESENTMENT THAT WE WERE CHOSEN AND THEY WEREN'T WHATEVER THE BASIC ORIGINS OF THE FEUD IT ESCALATED MRS ROBBIE CUT TIM AND SISTER JANET OUT OF HER WILL AND REDUCED BEQUESTS TO HER OTHER ESTRANGED CHILDREN THE INS SUED THEIR MOTHER TO TRY TO ELIMINATE HER AS A BENEFICIARY OF MR ROBBIE'S TRUST SHE DIED IN NOVEMBER 1991 AT AGE 69 BUT THE PROBLEMS WENT ON NOW AN ESTATE TAX OF MORE THAN 30 MILLION WOULD BE ASSESSED TO PAY IT THE DOLPHINS' SALE WAS INEVITABLE BUT BY NOW DESPITE A 1991 RANKING BY FINANCIAL WORLD AS SPORT'S SECOND MOST VALUABLE FRANCHISE 205 MILLION BY THE MAGAZINE'S CALCULATION THEY WERE DAMAGED GOODS THE INS WHO RAN THE TEAM HAD INHERITED THEIR FATHER'S HARDHEADEDNESS WITHOUT HIS BUSINESS ACUMEN THE DOLPHINS LOST 36 MILLION IN 1992 AND ACCORDING TO ONE PERSON KNOWLEDGEABLE IN NFL FINANCES ABOUT 7 MILLION IN 1993 TIM ROBBIE ASSERTS THAT THE TEAM WAS PROFITABLE IN 1993 ONE FACTOR WAS A SPIRALING PLAYER PAYROLL JOE ROBBIE HAD FOUGHT CONSTANTLY WITH COACH SHULA WHO FOREVER PRESSED TO SPEND BIG ON PLAYERS MR SHULA WON A LOT MORE GAMES ON THE GRIDIRON THAN ARGUMENTS IN THE OWNER'S OFFICE BUT THE COACH UTTERLY OVERRAN MR ROBBIE'S OFFSPRING DON GOES I WANT THIS PLAYER AND I WANT THAT PLAYER' AND THE KIDS CAN'T STAND UP TO HIM SAYS ONE NFL INSIDER FAMILIAR WITH THE DYNAMICS MIAMI'S SIGNING OF A RAFT OF HIGHPRICED FREE AGENTS LIKE TIGHT END KEITH JACKSON AND RECEIVER MARK INGRAM PUT THE DOLPHINS' PAYROLL AT ABOUT 40 MILLION THIS SEASON IN THE UPPER TIER OF THE NFL'S TOPSALARIED TEAMS ALSO HURTING FINANCES WERE THE TERMS OF THE TEAM'S LEASE WHICH DIVERT MAJOR REVENUE STREAMS LIKE LUXURYSUITE RENTALS TO THE SEPARATE COMPANY THAT OWNS THE STADIUM THAT DIDN'T MAKE SO MUCH DIFFERENCE WHEN THE ROBBIES OWNED BOTH BUT WHEN THEY PUT THE TEAM UP FOR SALE ON A STANDALONE BASIS IT DIMINISHED THE MARKET VALUE THE LURKING PRESENCE OF MR HUIZENGA DID TOO ANYBODY WHO BOUGHT THE DOLPHINS WOULD HAVE TO RECKON WITH HIM BOTH AS THE 50 OWNER OF THE STADIUM AND AS PRINCIPAL OWNER OF ITS OTHER OCCUPANT THE MARLINS THE BASEBALL AND FOOTBALL TEAMS HAVE HAD AN UNEASY RELATIONSHIP AS COTENANTS IF THAT DIDN'T GIVE A PROSPECTIVE DOLPHINS OWNER PAUSE MR HUIZENGA'S TALK OF MOVING THE MARLINS TO HIS PROPOSED ENTERTAINMENT COMPLEX DID THE BASEBALL TEAM'S PRESENCE CUT THE DOLPHINS' RENTAL BILL ITS ABSENCE WOULD RATCHET IT BACK UP TO SOME KNOWLEDGEABLE DOLPHINS WATCHERS MR HUIZENGA WAS TRYING TO JAWBONE DOWN THE TEAM'S MARKET VALUE MR HUIZENGA WAS UNAVAILABLE FOR COMMENT THIS WAS CERTAINLY IN HIS INTEREST UNDER THE PARTOWNERSHIP TERMS HE NEGOTIATED IN 1990 HE HAD THE RIGHT TO BUY THE REST OF THE TEAM BY MATCHING THE HIGHEST OFFER ANYONE ELSE MADE IT HAD A DEPRESSING EFFECT ON THE MARKET FOR THE DOLPHINS IF YOU LET SOMEBODY TAKE CONTROL OF THE PROCESS ON THE BUY SIDE YOU CAN'T GET UP A HEAD OF STEAM FROM OTHER OUTSIDE BIDDERS SAYS AN INVESTMENT BANKER WHO HAS HANDLED SPORTS TRANSACTIONS THE ROBBIES AS EVEN SOME NONFAMILY NEUTRALS SEE IT DIDN'T MANAGE THE DOLPHINS' SALE VERY WELL WHEN THE NEW ENGLAND PATRIOTS WERE UP FOR SALE FOR INSTANCE THE OWNERS HIRED A TOPFLIGHT INVESTMENT BANK TO MANAGE THE TRANSACTION AND IT ORCHESTRATED AN AUCTION THAT FETCHED 160 MILLION THE ROBBIES RETAINED A REGIONAL BANK HOLDING COMPANY CALLED MANY OF THE SHOTS THEMSELVES AND STUMBLED THROUGH A LONG DISJOINTED SELLING PROCESS THE ROBBIES HAD TWO NEARAGREEMENTS FALL THROUGH IN 1993 THEN CAME A 142 MILLION BID EARLY THIS MONTH FROM JOHN HENRY A BOCA RATON COMMODITIES TRADER THE ROBBIES DECIDING THE OFFER CARRIED TOO MANY CONDITIONS REJECTED IT THEN TELECOMMUNICATIONS MAGNATE GEORGE LINDEMANN GOT A TWOWEEK EXCLUSIVE NEGOTIATING PERIOD STARTING JAN 10 HE CAME IN AT 138 MILLION THE THREE INS CALLED A MEETING OF THE COMBINED STADIUM AND TEAM BOARDS WHICH INCLUDED ONE OF THE OUT SIBLINGS TO CONSIDER THE OFFER BUT BETWEEN THE TIME THE MEETING WAS SCHEDULED LAST FRIDAY AND WHEN IT WAS TO BE HELD ON TUESDAY MR HUIZENGA SWOOPED IN TO MATCH MR LINDEMANN'S BID THE THREE CONTROLLING TRUSTEES ACCEPTED IT SUNDAY TO THE SCREAMS OF THE OUTS IT'S EASY FOR ANYBODY SITTING ON THE SIDELINES TO QUESTION ANY DEAL SAYS TIM ROBBIE THE TEAM PRESIDENT BUT WE TALKED TO AT LEAST 20 PEOPLE WHO HAD INTEREST IN BUYING AND WE'RE VERY COMFORTABLE WITH THIS TRANSACTION OTHER ROBBIE SIBLINGS SOUGHT COMPETITIVE BIDDING AND DIDN'T THINK MR HUIZENGA WOULD MAKE A PREEMPTIVE STRIKE IT WAS DONE AROUND THE RULES IT WASN'T A VALIDLY CALLED MEETING TO APPROVE THE SALE SAYS MRS OLSON A BOARD MEMBER WHO LEARNED OF THE TRANSACTION ONLY AFTER THE FACT I RESPECT WAYNE HUIZENGA HE JUST JUMPED IN AT A GOOD TIME TO GET A GOOD DEAL HE LOOKED OUT FOR HIS INTERESTS AND I'M JUST TRYING TO LOOK OUT FOR MINE INDEED MR HUIZENGA HAS PROBABLY SWUNG A VERY GOOD DEAL THE NFL STANDS TO BE FLUSH OVER THE NEXT FOUR YEARS WITH 44 BILLION WORTH OF TV MONEY GUSHING IN AND LABOR PEACE FINALLY AT HAND THE CONTROL OF BOTH TEAMS USING JOE ROBBIE STADIUM ALSO GAINS HIM OPERATING EFFICIENCIES FOR MR HUIZENGA SPORTS IS EMERGING AS GREAT FODDER FOR THE EVOLVING MEDIA AND ENTERTAINMENT AGE IN WHICH HE IS A PLAYER WAYNE VIEWS THESE PROPERTIES AS SOFTWARE FOR THE BIGGER PICTURE SAYS DEAN JORDAN BROADCAST CHIEF FOR THE MARLINS AND MARKETING CHIEF FOR THE PANTHERS THE MARLINS MAKE JOE ROBBIE STADIUM GO FOR 81 GAMES A YEAR AND THAT MAKES MERCHANDISING CONCESSIONS TV AND OTHER THINGS GO AND ALL OF THAT IS PART OF A BIGGER PICTURE THAT'S STILL BEING DEFINED ON A DAILY BASIS THE ROBBIES WILL PROBABLY NOT BE PART OF THAT FUTURE A DEVELOPMENT THEY VIEW WITH MIXED EMOTIONS IT'S HARD SAYS KEVIN THE ONETIME BALLBOY IT'S BEEN MY LIFE BUT HIS SISTER MS TRULY LOOKS FORWARD TO THE END OF HAVING TO DEAL WITH HER ESTRANGED SIBLINGS I'LL BE GRATEFUL I DON'T HAVE THEM IN MY LIFE 9401270167 940127 TECHNOLOGY & HEALTH NIPPON TELEGRAPH SAYS IT IS INVESTING IN GENERAL MAGIC INC NEW YORK NIPPON TELEGRAPH & TELEPHONE CORP SAID IT IS INVESTING IN THE GENERAL MAGIC INC CONSORTIUM FURTHERING THE GROUP'S GOAL OF ESTABLISHING ITS OPERATING AND COMMUNICATIONS SOFTWARE AS WORLD STANDARDS FOR PERSONAL COMMUNICATORS AND AGENTBASED COMPUTER NETWORKS THE JAPANESE CONCERN DECLINED TO SPECIFY FINANCIAL TERMS OR THE SIZE OF ITS STAKE IN GENERAL MAGIC BUT SAID IT IS BECOMING A PARTNER WITH THE GOAL OF DEVELOPING INFORMATION SERVICES AND DEVICES BASED ON GENERAL MAGIC TECHNOLOGIES THE CONSORTIUM BASED IN MOUNTAIN VIEW CALIF ALREADY CONSISTS OF US COMPANIES APPLE COMPUTER INC MOTOROLA INC AMERICAN TELEPHONE & TELEGRAPH CO AND THE WORLD'S THREE LARGEST CONSUMERELECTRONICS CONCERNS SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS THE TWO BIGGEST TELECOMMUNICATIONS COMPANIES NT&T AND AT&T HAVE NOW JOINED TO SUPPORT A COMMON PLATFORM SAID MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE OFFICER ADDING THAT THE CONSORTIUM WILL ALSO SEEK TELECOMMUNICATIONS ALLIANCES IN EUROPE GENERAL MAGIC HAS BEGUN SHIPPING A COMMUNICATIONS SOFTWARE CALLED TELESCRIPT WHICH ALLOWS USERS OF SUCH DEVICES AS TELEPHONES PERSONAL COMMUNICATORS INTERACTIVE TELEVISION SETS AND COMPUTERS TO PROGRAM INTELLIGENT AGENTS TO PERFORM TASKS ON THEIR BEHALF SUCH AS FILTERING OR FINDING INFORMATION AT&T SAID EARLIER THIS MONTH THAT IT WILL BY THIS SUMMER DEPLOY A NATIONWIDE NETWORK CALLED PERSONALINK AS A SORT OF ELECTRONIC MARKETPLACE MESSAGING SERVICE AND GATEWAY FOR DEVICE USERS AND COMPANIES THAT WANT TO PROVIDE SERVICES TO THOSE USERS 9401270165 940127 INTERNATIONAL BANK COLLAPSE AND POLITICAL FEARS SHAKE VENEZUELA FINANCIAL SYSTEM BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL THE COLLAPSE OF VENEZUELA'S SECONDLARGEST BANK AND UNCERTAINTY ABOUT THE ECONOMIC PROGRAM OF THE COUNTRY'S PRESIDENTELECT ARE SENDING TREMORS THROUGH THE VENEZUELAN FINANCIAL SYSTEM BANKERS SAY THAT NERVOUS VENEZUELAN INVESTORS HAVE TRANSFERRED ROUGHLY 500 MILLION OUT OF THE COUNTRY DURING THE PAST WEEK VENEZUELA HOWEVER IS WELLPOSITIONED TO DEFEND ITS CURRENCY AGAINST A SPECULATIVE ATTACK THE COUNTRY'S TOTAL HARD CURRENCY AND GOLD RESERVES STOOD AT 127 BILLION AT YEAR END NEVERTHELESS THE TURMOIL IN THE FINANCIAL SYSTEM IS PUTTING ADDED PRESSURE ON PRESIDENTELECT RAFAEL CALDERA WHO CAMPAIGNED ON A VAGUELY POPULIST PLATFORM TO CLEARLY DEFINE HIS ECONOMIC PROGRAM BEFORE HE TAKES OFFICE FEB 2 THE FINANCIAL CRISIS STARTED TWO WEEKS AGO WHEN BANCO LATINO THE COUNTRY'S SECONDLARGEST BANK WITH DEPOSITS OF 16 BILLION WAS SHUT DOWN BY THE GOVERNMENT AFTER A RUN ON DEPOSITS AS PRICES OF VENEZUELAN GOVERNMENT DEBT STARTED SINKING ON INTERNATIONAL MARKETS AND SOME SMALL VENEZUELAN INVESTORS BEGAN WITHDRAWING MONEY FROM OTHER BANKS THE GOVERNMENT OF INTERIM PRESIDENT RAMON VELASQUEZ MOVED TO TRY TO CONTAIN THE DAMAGE MR VELASQUEZ ANNOUNCED A LOWERING OF THE BANK RESERVE REQUIREMENT AND A RESHUFFLING OF BANK REGULATORS THE GOVERNMENT ALSO PLEDGED TO COVER LOSSES SUFFERED BY BANCO LATINO DEPOSITORS WHICH ANALYSTS SAY COULD COST THE GOVERNMENT 500 MILLION IT'S STILL UNCLEAR WHETHER THE GOVERNMENT INTENDS TO LIQUIDATE THE BANK OR TO PROVIDE IT WITH AN INFUSION OF CAPITAL BANCO LATINO WAS THE VICTIM OF A RECKLESS EXPANSION STRATEGY BANKERS SAY MANAGEMENT PRACTICES AT BANCO LATINO WERE SO LAX THAT PROBLEM LOANS CAME TO REPRESENT ABOUT 70 OF THE BANK'S NET WORTH BANKERS NOTE THAT BANCO LATINO'S RISKY PRACTICES MAY HAVE BEEN WINKED AT BY REGULATORS IN THE ADMINISTRATION OF FORMER PRESIDENT CARLOS ANDRES PEREZ WHO HAD CLOSE TIES TO THE BANK OWNERSHIP GROUP MR PEREZ WHO WAS FORCED OUT OF OFFICE LAST YEAR IS AWAITING TRIAL ON CORRUPTION CHARGES IN AN UNRELATED CASE WHILE BANCO LATINO SEEMS TO HAVE BEEN A CASE OF EXTREME MISMANAGEMENT ANALYSTS DON'T DISCOUNT FURTHER NEGATIVE SURPRISES IN A BANKING SYSTEM THAT HAS TRADITIONALLY BEEN BOTH UNDERCAPITALIZED AND LOOSELY REGULATED VENEZUELA HAS ARGUABLY ONE OF THE WEAKEST BANKING SYSTEMS IN LATIN AMERICA SAID A RECENT REPORT BY SALOMON BROTHERS INC EXACERBATING THE BANK PROBLEM HAS BEEN UNCERTAINTY REGARDING THE POLICIES OF MR CALDERA WHO HAS YET TO REVEAL WHO HE INTENDS TO NAME TO HIS CABINET OVER THE PAST YEAR MR CALDERA WHO IS 77 YEARS OLD AND PREVIOUSLY SERVED AS PRESIDENT FROM 1969 TO 1974 SENT OUT CONTRADICTORY SIGNALS BY ATTACKING FREEMARKET REFORMS ON THE CAMPAIGN TRAIL WHILE APPEARING MORE OPEN TO THEM IN MEETINGS WITH INVESTORS NEVERTHELESS THE DIFFICULT ECONOMIC SITUATION HE WILL INHERIT INCLUDING STAGNATION HIGH INFLATION AND A HUGE PUBLIC DEFICIT HAS CAUSED MANY ANALYSTS TO QUESTION HIS ABILITY TO KEEP THE PROMISES HE MADE TO VOTERS ANOTHER CONSTRAINT ON MR CALDERA WILL BE RUTH DE KRIVOY THE PRESIDENT OF THE CENTRAL BANK WHICH WAS RECENTLY GRANTED INDEPENDENCE FROM THE GOVERNMENT THROUGH A CHANGE IN THE VENEZUELAN BANKING LAW HER RESPONSE TO THE BANK CRISIS HAS BEEN TO SPEND RESERVES TO DEFEND VENEZUELA'S CURRENCY THE BOLIVAR RATHER THAN TO DEVALUE IT A DEVALUATION WOULD FEED INFLATION AND THE CENTRAL BANK HAS REPEATEDLY IDENTIFIED THE CONTROL OF INFLATION AS THE MAJOR GOAL OF ECONOMIC POLICY ALSO SINCE THE VENEZUELAN ECONOMY IS DRIVEN BY DOLLARBASED OIL REVENUE A DEVALUATION WOULD HAVE THE EFFECT OF LOWERING VENEZUELA'S TOWERING PUBLIC DEFICIT AND TEMPORARILY GIVING MR CALDERA LICENSE TO SPEND FREELY SOME ANALYSTS THINK THAT THE MARKET'S SENSITIVITY TO THE RECENT CRISIS COULD MAKE MR CALDERA THINK TWICE ABOUT TRYING TO IMPLEMENT THE POPULIST MEASURES HE PROMISED DURING HIS CAMPAIGN IT CERTAINLY SENDS A WARNING THAT THE MARKETS ARE EXTREMELY SENSITIVE TO ANY SIGN OF ECONOMIC MISMANAGEMENT SAYS EDUARDO CABRERA CHIEF LATIN AMERICA STRATEGIST FOR MERRILL LYNCH BASED IN NEW YORK 9401270164 940127 WHO'S NEWS EQUIFAX INC EQUIFAX INC ATLANTA THOMAS F CHAPMAN 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS FINANCIALINFORMATION PROVIDER THE ELECTION OF MR CHAPMAN EXECUTIVE VICE PRESIDENT OF EQUIFAX INCREASES THE SIZE OF THE BOARD TO 15 9401270163 940127 COMMODITIES GOLD AND PLATINUM FUTURES RISE ON PERCEPTIONS OF POLITICAL INSTABILITY IN SOUTH KOREA RUSSIA BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD AND PLATINUM FUTURES PRICES ROSE ON PERCEPTIONS OF POLITICAL INSTABILITY IN SOUTH KOREA AND RUSSIA AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY CLIMBED 310 TO 38670 AN OUNCE AND AT THE NEW YORK MERCANTILE EXCHANGE THE PRICE OF THE APRIL PLATINUM FUTURES CONTRACT WAS UP 590 TO 38810 AN OUNCE THE MARKET DERIVED STRENGTH EARLY YESTERDAY FROM BUYING OF GOLD BY SWISS DEALERS AND BUYING OF PLATINUM BY AT LEAST ONE BIG US BROKERAGE COMPANY ANALYSTS SAID AS THE DAY WORE ON POLITICAL STRIFE BECAME AN EXCUSE FOR A KNEEJERK REACTION BY TRADERS WHO BID PRICES HIGHER SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE CLINTON ADMINISTRATION SAID YESTERDAY IT PLANNED TO SHIP PATRIOT ANTIMISSILE WEAPONS TO SOUTH KOREA FOR USE IN DEFENSE AGAINST THE POSSIBILITY OF MISSILE STRIKES BY NORTH KOREA NORTH KOREA HAS THREATENED TO END ITS ARMISTICE AGREEMENT WITH SOUTH KOREA ON THE KOREAN PENINSULA SUCH POSTURING FOR THE POSSIBILITY OF WAR USUALLY TENDS TO PUSH PRECIOUSMETALS PRICES HIGHER AT TIMES OF POLITICAL INSTABILITY INVESTORS OFTEN POUR MONEY INTO SUCH HARD ASSETS AS GOLD AND PLATINUM BECAUSE THEY BELIEVE THESE COMMODITIES WILL HOLD THEIR VALUE ADDING FUEL TO THE FIRE YESTERDAY WERE REPORTS THAT RUSSIA'S FINANCE MINISTER BORIS FYODOROV HAD RESIGNED SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC MR FYODOROV REPORTEDLY QUIT AFTER ACCUSING RUSSIAN PRIME MINISTER VICTOR CHERNOMYRDIN OF ENGINEERING AN ECONOMIC COUP IN RUSSIA AS PRECIOUSMETALS PRICES ROSE IN NEW YORK THEY TRIGGERED STOPS WHICH ARE PREARRANGED ORDERS TO PURCHASE FUTURES CONTRACTS MANY OF THESE ORDERS HAD BEEN PLACED BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AND THE BIG TRADES HELPED TO CONTINUE TO DRIVE PRICES HIGHER YET ANALYSTS SAY THE PRICE OF GOLD HAS BECOME MIRED IN A TRADING RANGE OF ROUGHLY 380 TO 395 AN OUNCE WE NEED TO SEE THE MARKET MOVE BACK THROUGH RECENT HIGHS IF WE'RE GOING TO SUSTAIN THE RALLY THAT'S BEEN GOING ON MR O'NEILL SAID BUT I SUSPECT WE'RE GOING TO BE RANGEBOUND FOR A WHILE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY A BULLISH INDUSTRY REPORT ON US PETROLEUM INVENTORIES AND ANOTHER WAVE OF COLD SNOWY WEATHER IN THE NORTHEAST COMBINED TO PUSH PETROLEUM FUTURES PRICES HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FUTURES FOR FEBRUARY DELIVERY LED THE PACK GAINING 241 CENTS A GALLON DURING THE SESSION TO CLOSE AT 5231 CENTS THE WEEKLY REPORT LATE TUESDAY FROM THE AMERICAN PETROLEUM INSTITUTE SHOWED A HUGE 82 MILLION BARREL DROP IN SUPPLIES OF DISTILLATES OR HEATING OIL AND DIESEL FUEL AN ENERGY DEPARTMENT INVENTORY REPORT YESTERDAY ECHOED THE INSTITUTE'S STATISTIC BUT PUT THE DECLINE IN DISTILLATE SUPPLIES AT AN EVEN BIGGER 89 MILLION BARRELS MEANWHILE WEATHER FORECASTS WERE CALLING FOR MORE COLD AND SNOW IN THE NORTHEAST A FACTOR IN THE HEATING OIL PRICE RISE AND IN A JUMP IN NATURALGAS PRICES MARCH NATURAL GAS ROSE 113 CENTS TO 2359 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET THE STRENGTH IN HEATING OIL PUSHED MARCH CRUDE HIGHER AS WELL WITH THE CONTRACT GAINING 30 CENTS A BARREL TO CLOSE AT 1547 GRAINS AND SOYBEANS WHEAT FUTURES PRICES FELL ON PERCEPTIONS OF DWINDLING EXPORT DEMAND FOR US WHEAT AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN 425 CENTS TO 37275 A BUSHEL AN ARRAY OF EXPORT PURCHASES ANNOUNCED ABOUT TWO WEEKS AGO HAS TAPERED OFF EXERTING DOWNWARD PRESSURE ON FUTURES PRICES SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO PAKISTAN AND CHINA HAVE AGREED TO PURCHASE SOME WHEAT BUT THE MARKET HAS ALREADY DIGESTED THAT NEWS AND THE LACK OF FRESH DEMAND FOR WHEAT HAS BEGUN TO ERODE PRICES 9401270162 940127 WHO'S NEWS APPLE COMPUTER INC APPLE COMPUTER INC CUPERTINO CALIF PAUL G STERN 55 YEARS OLD FORMERLY CHAIRMAN OF NORTHERN TELECOM INC WAS ELECTED TO THE BOARD OF THIS PERSONALCOMPUTER MAKER HE SUCCEEDS JOHN SCULLEY FORMERLY APPLE'S CHIEF EXECUTIVE 9401270161 940127 OCCIDENTAL POSTS PROFIT OF 57 MILLION FOR 4TH PERIOD AIDED BY SPECIAL ITEMS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES OCCIDENTAL PETROLEUM CORP REPORTED NET INCOME OF 57 MILLION FOR THE FOURTH QUARTER REVERSING A 588 MILLION LOSS A YEAR EARLIER BOTH PERIODS WERE STRONGLY AFFECTED BY ONETIME ITEMS WITHOUT VARIOUS GAINS AND CHARGES THE LATEST PERIOD PRODUCED A SLIGHTLY WIDER LOSS THAN A YEAR EARLIER ON A PERSHARE BASIS PROFIT AMOUNTED TO 15 CENTS WHILE THE YEAREARLIER LOSS EQUALED 194 SALES FELL 13 TO 202 BILLION FROM 232 BILLION OCCIDENTAL STOCK FELL 50 CENTS TO 18125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RAY R IRANI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PETROLEUM GAS TRANSMISSION AND CHEMICAL COMPANY SAID THAT COSTCUTTING EFFORTS CONTINUE AT THE ONCEFARLARGER COMPANY BUT WERE OUTWEIGHED BY LOWER OIL AND CHEMICAL PRICES THE LOSS IN THE 1992 FOURTH QUARTER REFLECTS A CHARGE OF 600 MILLION OR 199 A SHARE RELATED TO OCCIDENTAL'S DECISION TO LEAVE THE COAL BUSINESS OCCIDENTAL'S HISTORICAL CORE IN OIL AND GAS OPERATIONS PRODUCED DIVISIONAL PROFIT OF 76 MILLION AGAINST 5 MILLION A YEAR EARLIER HOWEVER THE LATEST PERIOD'S FIGURE INCLUDES AN 85 MILLION ONETIME GAIN FROM THE REVERSAL OF TAX RESERVES INDICATING ABOUT A 9 MILLION LOSS ON OPERATIONS THE YEARAGO RESULT REFLECTS ONETIME CHARGES TOTALING 58 MILLION INDICATING A 63 MILLION PROFIT FROM OPERATIONS NATURALGAS TRANSMISSION HAD A 47 DROP IN DIVISION PROFIT TO 74 MILLION FROM 140 MILLION A YEAR EARLIER THE YEAREARLIER PERIOD HAD NET GAINS OF 64 MILLION FROM ONETIME ITEMS INDICATING OPERATING PROFIT OF 76 MILLION IN THE PERIOD CHEMICALS HAD A DIVISIONAL PROFIT OF 16 MILLION MORE THAN DOUBLE THE 6 MILLION OF A YEAR EARLIER THE LATEST PERIOD HOWEVER INCLUDES 6 MILLION IN GAINS FROM A ONETIME REVERSAL OF RESERVES FOR PLANT CLOSING MAJOR LOSSES APPARENTLY WERE AVERTED IN THE DIVISION BY CONSIDERABLE REDUCTIONS IN OPERATING COSTS IN GENERAL CORPORATE EXPENSES INTEREST EXPENSE NARROWED TO 145 MILLION FROM 158 MILLION THE RESULT OF LOWER INTEREST RATES THE COMPANY SAID FOR THE YEAR OCCIDENTAL REPORTED NET INCOME OF 283 MILLION OR 80 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 591 MILLION OR 197 A SHARE REVENUE IN SLID 46 TO 812 BILLION FROM 849 BILLION 9401270160 940127 INTERNATIONAL HOECHST DISCUSSES FIBERS SPINOFF FRANKFURT HOECHST AG CONFIRMED IT IS DISCUSSING SPINNING OFF A PART OF ITS FIBERS BUSINESS INTO AN INDEPENDENT UNIT BUT SAID IT IS IN THE EARLIEST STAGES IT IS A THEME THAT IS IN DISCUSSION BUT IT'S FAR FROM ANY DECISION SAID A SPOKESWOMAN FOR HOECHST ONE OF GERMANY'S MAJOR CHEMICALS GROUP NO FURTHER DETAILS WERE AVAILABLE LAST WEEK HOECHST SAID IT WOULD CUT 2000 JOBS IN ITS WESTERN EUROPE FIBERS OPERATIONS BY THE END OF 1995 9401270159 940127 KANEBO CUTS NYLON PRODUCTION OSAKA JAPAN HIT BY SLUMPING DEMAND KANEBO LTD SAID IT REDUCED ITS NYLON PLANT'S PRODUCTION TO 60 OF CAPACITY AND IS GIVING 540 WORKERS THREE EXTRA DAYS OFF A MONTH KANEBO A MAJOR JAPANESE COSMETICS AND TEXTILE MANUFACTURER BEGAN THE MEASURES LAST MONTH ACCORDING TO A COMPANY SPOKESMAN THE PLANT IS IN HOFU 489 MILES SOUTHWEST OF TOKYO THE MEASURE IS PLANNED TO LAST THROUGH MARCH 9401270158 940127 TECHNOLOGY & HEALTH LOTUS NET DOUBLED IN FOURTH QUARTER ON 13 SALES RISE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS LOTUS DEVELOPMENT CORP SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED ON A 13 SALES GAIN AS STRONG GROWTH IN COMMUNICATIONS SOFTWARE AND NEW WINDOWSBASED PRODUCTS OFFSET A DECLINE IN OLDER 123 SOFTWARE PACKAGES THE RESULTS WERE AHEAD OF MOST ANALYSTS' EXPECTATIONS AS WERE GROSS PROFIT MARGINS WHICH ROSE DESPITE INDUSTRYWIDE PRICE CUTTING THE STOCK ROSE 275 OR 52 TO CLOSE AT 55625 IN HEAVY NASDAQ STOCK MARKET TRADING OF 38 MILLION SHARES NET WAS 296 MILLION OR 64 CENTS A SHARE COMPARED WITH LAST YEAR'S 146 MILLION OR 35 CENTS A SHARE ON 11 FEWER SHARES THE YEARAGO RESULTS ALSO INCLUDED A 15 MILLION RESTRUCTURING CHARGE AND A 15 MILLION GAIN FROM THE SALE OF STOCK THIS IS THE QUARTER THAT EXPLAINS THE 178 RUNUP IN LOTUS'S STOCK PRICE IN THE PAST YEAR SAID DAVID READERMAN AN ANALYST WITH LEHMAN BROS THE FUNDAMENTALS GOING FORWARD ARE STRONG LOTUS REPORTED STRONG GROWTH IN SALES OF ELECTRONIC MAIL AND ITS NOTES SOFTWARE WHICH NOW ARE FIRMLY DRIVING THE BUSINESS AND ROSE TO 25 OF SALES SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO PRODUCTS BASED ON MICROSOFT CORP'S WINDOWS OPERATING SOFTWARE ROSE TO 70 OF SALES WHILE PROGRAMS FOR THE OLDER DOS SYSTEM FELL BY HALF REVENUE ROSE TO 2783 MILLION FROM 246 MILLION TERRY QUINN AN ANALYST AT FURMAN SELZ IN NEW YORK SAID LOTUS'S REVENUE WOULD HAVE BEEN EVEN BETTER EXCEPT THAT THE COMPANY DIDN'T BOOK ABOUT 16 MILLION IN NOTES SALES WHICH WILL BE RECOGNIZED IN THE FIRST QUARTER INSTEAD AND TIGHTENED INVENTORY IN RETAIL SALES CHANNELS THEY HAVE AN EMBARASSMENT OF RICHES AND THEY'RE DELIBERATELY TRYING TO RESTRAIN EXPECTATIONS FOR THE YEAR MR QUINN SAID SEVERAL ANALYSTS RAISED FORECASTS FOR THE CURRENT YEAR MR SHERLUND BOOSTED HIS TO 230 A SHARE FROM 220 BUT LOTUS'S CHIEF FINANCIAL OFFICER EDWIN GILLIS SAID LOTUS HASN'T ALTERED ITS GUIDANCE TO WALL STREET OF 195 TO 215 A SHARE FOR THE YEAR AND ANYONE ABOVE THAT IS OUT THERE AT THEIR OWN RISK SEPARATELY LOTUS PLAYED DOWN REPORTS OF A BUG IN ITS FLAGSHIP SPREADSHEET 123 FOR WINDOWS A SPOKESMAN NOTED THE PRODUCT HAS BEEN OUT FOR SEVEN MONTHS AND IF THIS PROBLEM WERE WIDESPREAD WE'D HAVE HEARD ABOUT IT IMMEDIATELY HE SAID THAT FEWER THAN 1 OF CALLS COMING INTO THE CUSTOMER HELP LINE RELATED TO THE GLITCH WHICH CAN CAUSE DATA TO BE LOST UNDER CERTAIN RARE CIRCUMSTANCES 9401270157 940127 TECHNOLOGY & HEALTH FIRM SAYS IT CAN SEND 10 TV CHANNELS OVER PHONE WIRES SOME ARE SKEPTICAL BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN UPSTART COMPANY WILL UNVEIL A NEW DIGITALCOMPRESSION TECHNOLOGY HERE TODAY THAT IT CLAIMS COULD ALLOW TELEPHONE COMPANIES TO SEND 10 CHANNELS OF VIDEO OVER THEIR EXISTING WIRES THOUGH ITS TECHNOLOGY HAS YET TO BE FIELDTESTED DIGITAL COMPRESSION TECHNOLOGY SAYS IT CAN ENABLE HOMES NOW RECEIVING TELEPHONE SERVICE TO RECEIVE MOVIES AND INTERACTIVE GAMES AND SERVICES OVER THE SAME 26GAUGE TWISTED COPPER PHONE WIRE IT CLAIMS THE TECHNOLOGY COULD ALSO ENABLE A CABLETV SYSTEM TO SEND 20 TO 30 CHANNELS IN THE SPACE OF ONE CHANNEL THREE TIMES WHAT IS CURRENTLY POSSIBLE WITH TRADITIONAL DIGITAL COMPRESSION THE COMPANY'S CHAIRMAN DAVID JIM JUDELSON WAS PRESIDENT OF PARAMOUNT COMMUNICATIONS INC THEN CALLED GULF & WESTERN INC BEFORE LOSING THE RACE FOR THE TOP POST TO CURRENT CHIEF EXECUTIVE OFFICER MARTIN DAVIS IN 1983 AT GULF & WESTERN MR JUDELSON WAS A BIG PROPONENT OF THE ELECTRIC CAR AND SINCE LEAVING HAS INVESTED IN VARIOUS TECHNOLOGY STARTUPS HE COFOUNDED DCT WITH ELLIOT GRUENBERG AN INVENTOR AND FORMER EXECUTIVE AT INTERNATIONAL BUSINESS MACHINES CORP WHO SPENT 30 YEARS STUDYING DIGITAL COMPRESSION MR JUDELSON CONTROLS DIGITAL COMPRESSION MR JUDELSON'S CLAIMS WHICH ARE BASED ON RESEARCH AT STEVENS INSTITUTE OF TECHNOLOGY OF HOBOKEN NJ ARE AMBITIOUS HE SAYS HE IS CURRENTLY NEGOTIATING A DEAL WITH A REGIONAL BELL TELEPHONE COMPANY THOUGH HE WON'T NAME IT HE HAS NO MAJOR CORPORATE INVESTORS AND THUS FAR HAS ONLY PROVEN THE NEW TECHNOLOGY'S CLAIMS ON A REALTIME SIMULATOR ON A LAB TABLE AT STEVENS SKEPTICS SAY SUCH A DEMONSTRATION IS NOT PROOF THAT DCT'S TECHNOLOGY WOULD WORK ON INTERFERENCESENSITIVE TELEPHONE NETWORKS HANDLING MILLIONS OF CALLS EACH HOUR THERE ARE WONDERFUL THINGS YOU CAN DO PUTTING ELECTRONIC DEVICES AT EACH END OF A WIRE SAYS JIM CHIDDIX SENIOR VICE PRESIDENT OF ENGINEERING AND TECHNOLOGY AT TIME WARNER INC'S CABLE UNIT MOST THINGS I HAVE COME ACROSS WITH CLAIMS THIS GRANDIOSE HAVE A FATAL FLAW WHEN IT COMES TO PRACTICAL APPLICATIONS IN THE REAL WORLD THE MOST SOPHISTICATED TELEPHONE TECHNOLOGY HAS BEEN DEVELOPED AT THE RESEARCH UNIT OF THE REGIONAL BELL COMPANIES BELL COMMUNICATIONS RESEARCH KNOWN AS ADSL OR ASYMMETRIC DIGITAL SUBSCRIBER LINE IT ENABLES DELIVERY OF FOUR CHANNELS OF VCRQUALITY VIDEO DOWN COPPER WIRE WE'RE SKEPTICAL FROM WHAT WE KNOW OF DCT'S TECHNOLOGY SAYS ONE BELL ENGINEER THERE AN EXECUTIVE OF ANOTHER REGIONAL TELEPHONE COMPANY HOWEVER SAID IT IS INTERESTED IN THE TECHNOLOGY AND PLANS TO TEST IT IN ITS OWN LABS BUT THE EXPERIENCE OF DCT UNDERSCORES HOW EVEN THE SMALLEST OF ENTREPRENEURIAL COMPANIES ARE TRYING TO FIND A PLACE AT THE TABLE OF FUTURE COMMUNICATIONS TECHNOLOGIES MR JUDELSON SAYS HE PLANS TO LICENSE THE TECHNOLOGY IN THE FORM OF A COMPUTER CHIP THAT HE COULD BRING TO MARKET IN LESS THAN A YEAR TECHNICIANS AT DCT WHICH HAS BEEN AWARDED A PATENT ON THE TECHNOLOGY SAY THEIR APPROACH TO DIGITAL COMPRESSION IS RADICALLY DIFFERENT FROM TRADITIONAL COMPRESSION TECHNIQUES BY EMPLOYING A NEW TRANSMISSIONBASED METHOD WHICH ESSENTIALLY RECONFIGURES BITS OF DATA INTO A PARALLEL SEQUENCE DCT SAYS IT CAN SEND 16 BITS IN THE SPACE AND TIME NORMALLY RESERVED FOR ONE BIT OF INFORMATION MR JUDELSON LIKENS IT TO SENDING 16 CARS THROUGH A TUNNEL SIDE BY SIDE INSTEAD OF SINGLE FILE THEN REALIGNING THEM AT THE OTHER END FEW OUTSIDE THE DCT CAMP HAVE SEEN THE SIMULATION ONE PERSON WHO DID HERMANN HELGERT A PROFESSOR OF ENGINEERING AND APPLIED SCIENCE AT GEORGE WASHINGTON UNIVERSITY DUBBED THE DCT TECHNOLOGY A BREAKTHROUGH AND SAYS HE BELIEVES IT PERFORMS AS STATED 9401270156 940127 WHO'S NEWS KAISER ALUMINUM CORP KAISER ALUMINUM CORP HOUSTON ROBERT J CRUIKSHANK 63YEAROLD RETIRED SENIOR PARTNER OF DELOITTE & TOUCHE WAS NAMED TO THE BOARD OF THIS MAKER OF ALUMINUM PRODUCTS INCREASING THE BOARD'S SIZE TO SIX MR CRUIKSHANK IS A DIRECTOR OF MAXXAM INC WHICH OWNS 67 OF KAISER'S VOTING STOCK 9401270154 940127 TWO STEELMAKERS POST WIDER LOSSES FOR 4TH QUARTER BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL BETHLEHEM THE NATION'S SECONDLARGEST STEELMAKER SAID IT EXPECTS STRONG DEMAND TO CONTINUE THIS YEAR RESULTING IN A PROFIT FOR 1994 BETHLEHEM REPORTED A FOURTHQUARTER LOSS OF 2426 MILLION OR 278 A SHARE COMPARED WITH A LOSS OF 56 MILLION OR 69 CENTS A SHARE IN 1992'S FOURTH QUARTER THE MOST RECENT PERIOD'S LOSS INCLUDED A 290 MILLION RESTRUCTURING CHARGE FOR A REVISED MODERNIZATION PLAN AT ITS STRUCTURALPRODUCTS DIVISION AND AN IDLED COKE PLANT SALES CLIMBED 14 TO 113 BILLION FROM 990 MILLION BETHLEHEM'S OPERATING PROFIT OF ABOUT 40 CENTS A SHARE TOPPED ANALYSTS' ESTIMATES IN THE MID20 CENTS RANGE J CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES SAID THE COMPANY'S EARNINGS BENEFITED FROM A FAVORABLE PRODUCT MIX AND COSTCUTTING ALONG WITH STRONGER DEMAND AND HIGHER PRICES HE ESTIMATED BETHLEHEM'S PROFIT PER TON AT 28 MUCH BETTER THAN THE 20 HE EXPECTED WE EXPECT TO SEE CONTINUED IMPROVEMENT IN DEMAND IN 1994 FROM MAJOR STEEL MARKETS SUCH AS AUTOMOTIVE CONSTRUCTION AND MACHINERY SAID CURTIS H BARNETTE CHAIRMAN AND CHIEF EXECUTIVE A CONTINUED ECONOMIC AND STEELMARKET RECOVERY COUPLED WITH ONLY A MODEST RISE IN STEEL IMPORTS SHOULD RESULT IN 1994 DOMESTICINDUSTRY SHIPMENTS WHICH MATCH OR EXCEED 1993'S ESTIMATED 87 MILLION TONS AND WE EXPECT THAT BETHLEHEM WILL BE PROFITABLE FOR THE YEAR 1994 FOR THE YEAR INCLUDING THE RESTRUCTURING CHARGE BETHLEHEM REPORTED A LOSS OF 266 MILLION COMPARED WITH A LOSS OF 550 MILLION FOR 1992 NET SALES FOR 1993 WERE 432 BILLION COMPARED WITH 4 BILLION IN 1992 BETHLEHEM IS SCALING BACK ITS PLANS TO MODERNIZE ITS STRUCTURALSTEEL BUSINESS UNDER THE ORIGINAL PLAN THE COMPANY PLANNED TO INSTALL A CONTINUOUS CASTER AT ITS STRUCTURALSTEEL OPERATION AND REDUCE EMPLOYMENT BY 1500 BETHLEHEM SAID IT HAS DECIDED TO SHIP STEEL FROM ANOTHER UNIT TO MAKE THE STRUCTURAL PRODUCTS ELIMINATING THE NEED FOR THE CASTER ALTHOUGH THE REVISED PROJECT WILL COST LESS ABOUT A QUARTER TO ONETHIRD OF THE ORIGINAL 100 MILLION ESTIMATE THE COMPANY IS REDUCING ANOTHER 500 JOBS AT THAT PLANT RESULTING IN THE NEED FOR ADDITIONAL CHARGES BETHLEHEM SAID IT SCALED BACK ITS MODERNIZATION PROGRAM AFTER DECIDING TO LIMIT ITS PRESENCE IN THE STRUCTURALSTEEL BUSINESS THE COMPANY SAID IT WILL NOW FOCUS ON LIGHT AND MEDIUM WIDEFLANGE BEAMS WHICH ARE USED MAINLY IN LIGHTER LOWRISE BUILDINGS THE HEAVY WIDEFLANGE BEAMS ARE USED IN HIGHRISE BUILDINGS WHICH THE COMPANY NOTED ARE BEING HURT BY REDUCED COMMERCIAL CONSTRUCTION ACTIVITY AND LOW OCCUPANCY RATES NATIONAL STEEL CITING OPERATIONAL PROBLEMS REPORTED A FOURTHQUARTER LOSS OF 1388 MILLION OR 389 A SHARE REFLECTING UNUSUAL CHARGES THE CHARGES INCLUDED 1086 MILLION TO RECOGNIZE LIABILITIES FROM THE TEMPORARY IDLING OF AN IRONORE PLANT AND 136 MILLION FOR INVENTORY ADJUSTMENTS THE CHARGES WERE OFFSET IN PART BY A 142 MILLION DEFERRED INCOMETAX CREDIT THE COMPANY ALSO REPORTED A 165 MILLION CHARGE FOR ACCOUNTING CHANGES WHICH WAS APPLIED RETROACTIVELY TO THE FIRST QUARTER FOR THE YEARAGO FOURTH QUARTER NATIONAL STEEL HAD A LOSS OF 99 MILLION OR 406 A SHARE INCLUDING CHARGES OF 252 MILLION LARGELY FOR HEALTH AND PENSION BENEFITS FOR UNITED MINEWORKERS RETIREES SALES FOR THE QUARTER WERE 5854 MILLION COMPARED WITH 5728 MILLION LAST YEAR THE COMPANY SAID IT EXPECTS A FIRSTQUARTER GAIN OF MORE THAN 110 MILLION STEMMING FROM A FAVORABLE US SUPREME COURT DECISION IN A CASE INVOLVING USX CORP'S FORMER BESSEMER & LAKE ERIE RAILROAD UNIT FOR 1993 NATIONAL REPORTED A LOSS OF 2589 MILLION OR 804 A SHARE INCLUDING 111 MILLION IN CHARGES FOR THE IDLED PLANT AND ACCOUNTING CHANGES LAST YEAR THE COMPANY POSTED A LOSS OF 484 MILLION OR 258 A SHARE INCLUDING CHARGES OF 37 MILLION FOR THE UNITED MINEWORKERS BENEFITS AND ACCOUNTING CHANGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BETHLEHEM STEEL CLOSED AT 2325 UP 1625 NATIONAL STEEL SHARES ROSE 375 CENTS TO 1575 9401270153 940127 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 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 59 DAYS 305 60 TO 89 DAYS 308 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 TO 179 DAYS 320 180 TO 249 DAYS 332 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 312 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 269 SIX MONTHS 305 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 301 ONE MONTH 307 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 302 60 DAYS 304 90 DAYS 307 120 DAYS 312 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 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 550 GERMANY 591 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 24 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 689 60 DAYS 697 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 686 60 DAYS 696 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401270152 940127 TEXACO INC TO TIE '94 CAPITAL BUDGET TO PRICE OF OIL BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON ALFRED DECRANE CHIEF EXECUTIVE OFFICER OF TEXACO INC SAID THE COMPANY WILL SPEND 15 BILLION TO 17 BILLION OVER THE NEXT FIVE YEARS ON ENERGY EXPLORATION AND OTHER CAPITAL PROJECTS BUT MR DECRANE SAID IN AN INTERVIEW THAT WHEN HE PRESENTS THE TEXACO BOARD TOMORROW WITH 1994'S BUDGET IT WILL FLUCTUATE WITH OIL PRICES WHICH HAVE STUCK FOR SEVERAL MONTHS AT FIVEYEAR LOWS WE'RE GOING TO RECOMMEND A BANDWIDTH OF INVESTMENT THE CHIEF EXECUTIVE SAID YOU'VE GOT TO WATCH YOUR CASH FLOW MR DECRANE'S 1994 BUDGET PROPOSAL UNDERSCORES THE CHANGES BIG INTERNATIONAL OIL COMPANIES ARE MAKING IN THEIR PLANNING PROCESSES IN PAST YEARS THEY WOULD SET A CAPITAL BUDGET AND TRY TO STICK TO IT EVEN AMID A PLUNGE IN CRUDE PRICES THE EXPLANATION WAS THAT MANY OIL PROJECTS REQUIRE MASSIVE AMOUNTS OF SPENDING OVER MANY YEARS AND MAY NOT BEGIN TO SHOW A RETURN UNTIL YEARS LATER WHEN COMPANIES HOPED PRICES WOULD RECOVER THE VOLATILITY THAT WE'VE SEEN IN OIL AND GAS MARKETS HAS SIGNALED THE DEMISE OF ANNUAL BUDGET PLANNING FOR ANY COMPANY THAT DOESN'T WANT TO GO THE WAY OF THE SOVIET UNION SAID ARVIND SANGER AN OILSERVICE ANALYST AT KIDDER PEABODY & CO IN NEW YORK ANY OIL COMPANY MUST BE MORE RESPONSIVE TO THE MARKET IN NOT SETTING A BUDGET IN STONE AND LIVING AND DYING BY IT MR DECRANE STRESSED THAT TEXACO ISN'T MAKING ANY RADICAL CHANGE IN ITS LONGTERM EXPLORATION STRATEGY BUT WOULD DEFER CERTAIN PROJECTS IF CRUDE PRICES REMAIN DEPRESSED LAST YEAR TEXACO BASED IN WHITE PLAINS NY MADE 286 BILLION OF CAPITAL EXPENDITURES THROUGH 1998 MR DECRANE SAID HE BELIEVES OIL PRICES WILL RECOVER AND THAT THE COMPANY WILL WIND UP SPENDING A TOTAL OF 15 BILLION TO 17 BILLION FIVE YEARS FROM NOW WHEN WE LOOK BACK THAT'S WHAT WE WILL HAVE DONE HE SAID THAT AVERAGES AROUND 3 BILLION A YEAR BUT HE SAID THAT ANNUAL LEVELS WILL FLUCTUATE BASED ON CASH FLOW AND THE SIZE OF PARTICULAR PROJECTS OIL PRICES WILL INCREASE MR DECRANE SAID I CAN'T PREDICT A SPECIFIC TIME OR LEVEL THE CHIEF EXECUTIVE ACKNOWLEDGED THAT HE AND OTHERS THOUGHT PRICES WHICH HAVE STUCK AROUND 15 A BARREL WOULD HAVE RECOVERED BY NOW THE LIKELY REDUCTION IN TEXACO'S SPENDING THIS YEAR MIRRORS AN INDUSTRYWIDE TREND AND BODES POORLY FOR THE MANY OILSERVICE COMPANIES THAT LIVE AND DIE ON THE SPENDING PATTERNS OF OIL EXPLORATION AND PRODUCTION COMPANIES THAT EXPECTATION WAS HIGHLIGHTED TUESDAY WHEN COOPER INDUSTRIES INC A DIVERSE MAKER OF PRODUCTS FOR MANY INDUSTRIES INCLUDING PETROLEUM SAID THAT 1994 NET INCOME COULD PLUNGE 25 BECAUSE OF A SLUMP IN OIL INDUSTRY EXPLORATION 9401270151 940127 TECHNOLOGY & HEALTH GENEBASED TEST MAY SOLVE PROBLEMS OF FREQUENT LYME DISEASE MISDIAGNOSIS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SAID THEY DEVELOPED A NEW GENEBASED DIAGNOSTIC TEST THAT MIGHT SOLVE PROBLEMS CAUSED BY THE FREQUENT MISDIAGNOSIS OF LYME DISEASE THE RESEARCHERS LED BY THE DOCTOR WHO IN 1976 DISCOVERED THE BACTERIUM THAT CAUSES LYME DISEASE SAID THE NEW TEST IDENTIFIED THE PRESENCE OF THE BACTERIUM IN JOINT FLUID REMOVED FROM 75 OF 88 PATIENTS WHO HAD CHRONIC ARTHRITIS APPARENTLY CAUSED BY THE DISEASE MOST OF THE PATIENTS HADN'T BEEN PROPERLY TREATED WITH ANTIBIOTICS WHICH CAN DESTROY THE BACTERIUM AND CURE THE ILLNESS THE RESULTS OF THIS STUDY REPRESENT A MAJOR ADVANCE IN OUR ABILITY TO DETECT THE BACTERIUM SAID ALLEN C STEERE CHIEF OF RHEUMATOLOGY/IMMUNOLOGY AT NEW ENGLAND MEDICAL CENTER IN BOSTON WHO HEADED THE NEW RESEARCH LYME DISEASE IS CAUSED BY INFECTION FROM A SPIROCHETE BACTERIUM CALLED BORRELIA BURGDORFERI THAT IS TRANSMITTED TO HUMANS BY A TICK THAT PREVIOUSLY HAS BITTEN INFECTED DEER OR MICE THE INFECTION GENERALLY CAUSES A RASH AND FLULIKE SYMPTOMS IF UNTREATED IT CAN CAUSE CHRONIC ARTHRITIS AND OTHER ILLS IN 1992 THE NATIONAL CENTERS FOR DISEASE CONTROL AND PREVENTION SAID ALMOST 10000 CASES WERE REPORTED TO IT BUT DR STEERE SAID MORE THAN 75 OF PATIENTS REFERRED TO HIS CLINIC WERE WRONGLY DIAGNOSED WITH THE DISEASE MORE TROUBLING THE CDC RECENTLY REPORTED THAT 14 CHILDREN TREATED AT ONE MEDICAL CENTER IN NEW JERSEY HAD TO HAVE THEIR GALLBLADDERS REMOVED BECAUSE THEY WERE TREATED EXCESSIVELY WITH ANTIBIOTICS THE CDC SAID MOST OF THE CHILDREN SHOWED NO EVIDENCE OF EVER HAVING LYME DISEASE THE BLOOD TEST CURRENTLY USED CAN'T TELL WHETHER THE BACTERIUM IS STILL PRESENT IN A PATIENT AND THUS WHETHER A PATIENT'S ARTHRITIS IS THE RESULT OF AN ACTIVE INFECTION THAT COULD BE TREATED WITH ANTIBIOTICS THE NEW TEST DEVELOPED BY DR STEERE AND HIS COLLEAGUES AT TUFTS UNIVERSITY MEDICAL CENTER AND THE MAYO CLINIC CAN DETECT A GENE COMMON ONLY TO THE BACTERIUM THE TEST MAKES USE OF A RELATIVELY NEW TECHNIQUE CALLED PCR WHICH HELPS IDENTIFY A GENE'S PRESENCE BY QUICKLY MAKING MILLIONS OF COPIES OF A GENE DR STEERE SAID THE TEST CAN FIND THE BACTERIUM ONLY IN JOINT FLUID NOTING THAT THE TEST ISN'T USEFUL FOR DETECTING EARLY LYME DISEASE THAT HAS YET TO CAUSE JOINT PROBLEMS USING THE PCR METHOD THE RESEARCHERS SAID THEY IDENTIFIED THE BACTERIUM'S GENE IN FLUID REMOVED FROM ARTHRITIC JOINTS OF 85 OF THE 88 PATIENTS WITH LYME DISEASE ARTHRITIS THE RESEARCHERS FAILED TO FIND THE GENE IN FLUID FROM 64 PATIENTS WITHOUT THE DISEASE MOREOVER THE RESEARCHERS FOUND THE BACTERIUM IN 70 OF 73 PATIENTS WHO HADN'T UNDERGONE ANTIBIOTIC THERAPY OR WHOSE THERAPY WAS INADEQUATE DR STEERE WHOSE RESEARCH TEAM REPORTED THE STUDY RESULTS IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE SAID THE PCR TEST SHOULD BE ABLE TO IDENTIFY WHICH PATIENTS HAVE ACTIVE INFECTIONS THAT WOULD BENEFIT FROM ANTIBIOTICS AND WHICH INFECTED PATIENTS ALREADY TREATED MIGHT BENEFIT FROM ADDITIONAL ANTIBIOTICS HE ADDED THAT THE PCR TEST IS A COMPLEX PAINSTAKING PROCEDURE TO PERFORM THAT LABORATORIES NEED TO TAKE EXTRAORDINARY PRECAUTIONS AGAINST CONTAMINATION THAT COULD PRODUCE FALSEPOSITIVE RESULTS AND THAT THE TEST IS COSTLY ALL OF WHICH MIGHT HAMPER ITS WIDESPREAD USE 9401270150 940127 WHO'S NEWS MORGAN STANLEY GROUP INC MORGAN STANLEY GROUP INC NEW YORK CHRISTOPHER W BEALE 46 YEARS OLD WAS NAMED A MANAGING DIRECTOR OF THIS FINANCIALSERVICES FIRM AND COHEAD OF ITS GLOBAL PROJECT FINANCE AND LEASING GROUP A NEW POSITION MR BEALE WAS MOST RECENTLY CHAIRMAN OF BEALE LYNCH PARTNERS LP A PROJECT FINANCING COMPANY IN NEW YORK 9401270149 940127 SMALL STOCK FOCUS BOND RALLY BOLSTERS FINANCIAL ISSUES AS MARKET PERKS UP AFTER 2 DOWN DAYS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK FIRMER FINANCIAL ISSUES SPURRED ON BY STRONG BONDS HELPED TO LIFT SMALLCOMPANY STOCKS FROM THE LOWER LEVELS OF THE PAST TWO SESSIONS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE 079 OR 030 TO 26284 MONDAY AND TUESDAY THE INDEX LOST 175 OR 066 AFTER POSTING A CLOSING RECORD FRIDAY THE TREASURY'S 30YEAR BOND ENDED UP NEARLY 1/2 POINT BOOSTING INTERESTRATESENSITIVE STOCKS WAINWRIGHT BANK & TRUST BOSTON JUMPED 1 TO 4 1/4 SELECTIVE INSURANCE GROUP BRANCHVILLE NJ ADDED 1 1/4 TO 29 1/4 AND ANCHOR BANCORP WISCONSIN MADISON WIS ROSE 7/8 TO 24 AFTER POSTING IMPROVED FISCAL THIRDQUARTER EARNINGS BALTIMOREBASED INVESTMENT FIRM ALEX BROWN NYSE CLOSED UP 1/2 AT 25 5/8 FOLLOWING STRONG FOURTHQUARTER AND FULLYEAR RESULTS ANNOUNCED AFTER THE CLOSE OF TRADING THE COMPANY REPORTED FOURTHQUARTER NET OF 242 A SHARE UP FROM 137 A YEAR EARLIER FOR THE YEAR NET WAS 561 A SHARE UP FROM 372 IN 1992 TRANSPORTATION STOCKS ALSO WERE STRONG WITH TRUCKERS FARING PARTICULARLY WELL CONSOLIDATED FREIGHTWAYS NYSE PALO ALTO CALIF EDGED UP 1/8 TO 25 3/8 YELLOW CORP OVERLAND PARK KAN ADDED 1/2 TO 27 1/8 AND MEMPHIS TENNBASED MS CARRIERS MOVED 1 1/4 HIGHER TO 24 3/4 ANOTHER GROUP FILLED WITH STANDOUTS WAS THE COMMUNICATIONS SECTOR JONES SPACELINK ENGLEWOOD COLO ROSE 3/8 TO 2 5/8 AND AMERICAN BUSINESS INFORMATION OMAHA NEB JUMPED 2 TO 17 IN A BRAND NAME INITIAL PUBLIC OFFERING PLAYTEX PRODUCTS INC WAS PRICED AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE AT 13 A SHARE OR THE LOW END OF ITS PROPOSED 13 TO 15 RANGE THROUGH LEAD UNDERWRITER MERRILL LYNCH PLAYTEX MAKES TAMPONS AND INFANTCARE PRODUCTS THE 20 MILLIONSHARE OFFERING COMANAGED BY DONALDSON LUFKIN & JENRETTE MORGAN STANLEY AND SMITH BARNEY SHEARSON COMES AS THE COMPANY IS BEGINNING TO SEE A TURNAROUND IN ITS RESULTS SAYS LINDA KILLIAN A PRINCIPAL IN RENAISSANCE CAPITAL A GREENWICH CONN INSTITUTIONAL RESEARCH FIRM THAT SPECIALIZES IN IPOS THE IPO IS A PLAY ON THE PLAYTEX BRAND YET BRAND NAMES HAVE COME UNDER A LOT OF PRESSURE SHE SAID NOTING THAT THE ISSUE IS NOT ONE OF A SMALL HANDFUL OF NEW ISSUES THAT RENAISSANCE HAS FELT COMFORTABLE RECOMMENDING AS A BUY THIS YEAR ON THE EARNINGS FRONT THREEFIVE SYSTEMS AMEX A PHOENIX OPTOELECTRONICPRODUCTS COMPANY SURGED 7 TO 43 1/2 THE COMPANY SAID ITS FOURTHQUARTER EARNINGS ROSE TO 51 CENTS A SHARE FROM 12 CENTS A YEAR EARLIER QUICKRESPONSE SERVICES A RICHMOND CALIF PROVIDER OF DATA AND NETWORK SERVICES JUMPED 2 TO 22 1/2 LATE TUESDAY THE COMPANY SAID FOURTHQUARTER EARNINGS CLIMBED TO 14 CENTS A SHARE FROM ONE CENT A YEAR EARLIER STARTER NYSE TUMBLED 3 1/4 TO 12 1/4 THE SPORTSWEAR MAKER BASED IN NEW HAVEN CONN SAID AFTER THE CLOSE TUESDAY THAT IT EXPECTS FOURTHQUARTER NET OF SIX CENTS TO NINE CENTS A SHARE COMPARED WITH PRO FORMA EARNINGS OF 14 CENTS A YEAR EARLIER MERRILL LYNCH & CO CUT STARTER TO NEARTERM NEUTRAL FROM ABOVE AVERAGE BUTLER MANUFACTURING A KANSAS CITY MO MAKER OF PREENGINEERED BUILDING SYSTEMS FELL 2 3/4 TO 25 1/4 THE COMPANY SAID ITS FOURTHQUARTER OPERATING PROFIT ROSE TO 43 CENTS A SHARE FROM 35 CENTS A YEAR EARLIER BUTLER EXPECTS ITS FIRSTQUARTER LOSS TO WIDEN FROM THE 27 CENTS REPORTED A YEAR EARLIER ALSO BUTLER SAID THE SALE OF ITS WALKER DIVISION WILL BE SOMEWHAT DILUTIVE IN THE NEAR TERM THOUGH THE SALE WILL BENEFIT THE COMPANY BY REDUCING INTEREST EXPENSE THE OVERALL EFFECT WILL BE TO LOWER 1994 EARNINGS BY 38 CENTS A SHARE A FIRST ALBANY DOWNGRADE TO NEUTRAL FROM BUY PUSHED MEDUSA NYSE DOWN 2 3/4 TO 31 3/4 THE BROKERAGE FIRM SAID IT CUT THE RATING BASED ON THE PRICE OF THE CLEVELAND HEIGHTS OHIO CEMENT COMPANY'S STOCK NEWS THAT COBRA INDUSTRIES NYSE GOT AN ORDER FOR 300 OF ITS PARK MODEL RECREATIONAL VEHICLES WHICH RETAIL FOR 18500 TO 22000 LIFTED THE GOSBEN IND COMPANY'S STOCK 1 TO 8 1/2 INCYTE PHARMACEUTICALS PALO ALTO CALIF ZOOMED 1 1/4 HIGHER TO 10 1/2 THE COMPANY SAID IT RECEIVED WORD FROM THE EUROPEAN PATENT OFFICE THAT IT PLANS TO GRANT THE COMPANY A FUNDAMENTAL PATENT COVERING THE DNA MOLECULE AND METHODS FOR RECOMBINANT PRODUCTION OF BACTERICIDAL/PERMEABILITYINCREASING PROTEIN THE PROTEIN MAY HAVE THERAPEUTIC VALUE TO TREAT LIFETHREATENING CONDITIONS SUCH AS ADULT RESPIRATORYDISTRESS SYNDROME HEMORRHAGIC SHOCK AND FATAL COMPLICATIONS OF INFECTION BURNS AND TRAUMA WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ OVERTHECOUNTER TRADING AT LEGG MASON WOOD WALKER SAID FINANCIAL STOCKS ARE HOLDING UP NICELY ALSO BECAUSE THEY'VE HAD SOME GOOD EARNINGS WITHOUT ANY MAJOR SURPRISES ANCHOR BANCORP WISCONSIN FOR EXAMPLE POSTED THIRDQUARTER EARNINGS OF 72 CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF 70 CENTS IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 56 CENTS BUT YESTERDAY'S MOVE HIGHER WASN'T CONFINED TO THE RATESENSITIVE GROUP LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW SAID THE BOND RALLY CONTINUED OPTIMISM OVER THE EARNINGS FLOW AND A BOUNCEBACK FROM TUESDAY ALL PLAYED A ROLE IN THE ADVANCE THE NASDAQ COMPOSITE INDEX GAINED 241 OR 031 TO END AT 78880 AFTER LOSING A TOTAL OF 788 OR 099 IN THE PAST TWO DAYS FOLLOWING FRIDAY'S RECORDSETTING SESSION ADVANCING ISSUES BEAT OUT NASDAQ DECLINERS 1746 TO 1365 ON NASDAQ NATIONAL MARKET VOLUME OF 268557000 SHARES DOWN FROM 309070100 SHARES YESTERDAY OVERALL VOLUME SLIPPED TO 315543300 SHARES FROM 352351000 YESTERDAY NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 94 WHILE 16 HIT LOWS WARREN GETLER CONTRIBUTED TO THIS ARTICLE 9401270148 940126 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9401270147 940127 UNITED DOMINION UNIT GETS JOB HOUSTON LITWIN ENGINEERS & CONSTRUCTORS A UNIT OF UNITED DOMINION INDUSTRIES LTD SAID IT WAS AWARDED A CONTRACT TO SUPPLY ENGINEERING DESIGN PROCUREMENT AND CONSTRUCTION SERVICES TO TEXACO INC IN CONNECTION WITH THE UPGRADING OF ITS REFINERY IN COLON PANAMA A SPOKESMAN FOR UNITED DOMINION A CONSTRUCTION AND ENGINEERING CONCERN BASED IN CHARLOTTE NC DECLINED TO DISCLOSE THE VALUE OR TERMS OF THE MULTIYEAR CONTRACT LITWIN SAID THE TOTAL COST OF THE UPGRADING PROJECT IS ABOUT 80 MILLION 9401270146 940127 MARKETING & MEDIA PHILIP MORRIS NET DECLINED BY 72 IN FOURTH QUARTER BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS REPORTED STEEP DECLINES IN PROFIT FOR THE QUARTER AND THE YEAR REFLECTING ITS DECISION IN APRIL TO SLASH PRICES ON PREMIUM CIGARETTE BRANDS AND ITS PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGES FOR THE QUARTER THE TOBACCO AND FOOD GIANT SAID NET INCOME FELL 72 TO 339 MILLION OR 38 CENTS A SHARE FROM 12 BILLION OR 134 A SHARE A YEAR EARLIER A RESTRUCTURING CHARGE ANNOUNCED IN NOVEMBER TO COVER THE ELIMINATION OF 14000 JOBS OR 8 OF THE COMPANY'S WORLDWIDE WORK FORCE AND TO CLOSE AS MANY AS 40 PLANTS REDUCED EARNINGS 457 MILLION OR 52 CENTS A SHARE REVENUE IN THE QUARTER FELL 14 TO 1471 BILLION FROM 1492 BILLION MICHAEL A MILES CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID PHILIP MORRIS EMERGED FROM THE YEAR AS A STRONGER MORECOMPETITIVE COMPANY OVERALL HE SAID COST REDUCTIONS SHOULD CONTRIBUTE TO 1994 PROFIT GROWTH IN ALL OUR BUSINESSES FOR THE YEAR OPERATING PROFIT AT THE COMPANY'S DOMESTIC TOBACCO BUSINESS WAS DOWN 46 SLIGHTLY MORE THAN THE COMPANY PREDICTED IN NOVEMBER TO 28 BILLION FROM 519 BILLION IN 1992 THE DROP CAME AS THE COMPANY SLASHED PRICES ON ITS MARLBORO BRAND AND OTHER PREMIUM BRANDS AS MUCH AS 20 IN RESPONSE TO INCREASING COMPETITION BY DISCOUNT BRANDS PHILIP MORRIS SAID THE STRATEGY HELPED IT TO REGAIN MARKET SHARE IN THE PREMIUM CATEGORY IN NOVEMBER THE COMPANY RAISED PRICES ABOUT 5 ON PREMIUM BRANDS AND ABOUT 7 ON DISCOUNT BRANDS ANALYSTS EXPECT FURTHER PRICE INCREASES THIS YEAR THE RESULTS WERE BORING FROM A NUMBERS STANDPOINT BUT THE '94 NUMBERS ARE SHAPING UP TO BE BETTER THAN PEOPLE EXPECTED PARTICULARLY FOR DOMESTIC TOBACCO BECAUSE THE PRICE WAR IS OVER SAID GARY BLACK OF SANFORD C BERNSTEIN & CO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PHILIP MORRIS SHARES JUMPED 1375 TO 5925 THE STOCK HAS NEARLY RECOVERED AFTER PLUNGING MORE THAN 20 TO BELOW 50 IN THE WAKE OF APRIL'S ANNOUNCEMENT REFLECTING STABILITY IN DOMESTIC TOBACCO PRODUCTS SAID LEIGH FERST OF PRUDENTIAL SECURITIES BUT SHE EXPRESSED WORRY THAT THE CORE BUSINESSES COULD SEE A PROFIT DECLINE IN 1995 WHEN LARGE FEDERAL EXCISETAX INCREASES COULD GO INTO EFFECT TO FINANCE HEALTHCARE REFORM FOR THE YEAR PHILIP MORRIS POSTED A 37 DECLINE IN EARNINGS TO 309 BILLION OR 352 A SHARE FROM 494 BILLION OR 545 A SHARE IN ADDITION TO THE RESTRUCTURING CHARGE THE 1993 RESULTS INCLUDED A 495 MILLION NONCASH CHARGE RELATED TO AN ACCOUNTING CHANGE FOR POSTEMPLOYMENT BENEFITS REVENUE ROSE 3 TO 609 BILLION FROM 5913 BILLION 9401270145 940127 MARKETING & MEDIA WESTWOOD ONE FORMER HEAD TOP AIDE SETTLE SEC CHARGES OF MISSTATING RESULTS BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL CULVER CITY CALIF WESTWOOD ONE INC SETTLED SECURITIES AND EXCHANGE COMMISSION CHARGES THAT THE RADIO PROGRAM DISTRIBUTOR AND NETWORK OPERATOR FRAUDULANTLY MISSTATED FINANCIAL RESULTS IN THE COMPANY'S FISCAL 1987 AND 1988 THE SEC ALLEGED THAT WESTWOOD ONE FORMER COMPANY PRESIDENT WILLIAM J BATTISON AND CURRENT SENIOR VICE PRESIDENT GARY J YUSKO EMPLOYED IMPROPER ACCOUNTING AND DISCLOSURE PRACTICES LEADING TO MATERIAL OVERSTATEMENTS OF SOME QUARTERLY OPERATING RESULTS IN THE TWO PERIODS THE FRAUD AND IMPROPER ACCOUNTING PRACTICES TOGETHER TOTALED 67 MILLION IN PRETAX OPERATING PROFIT IN FISCAL 1987 EQUAL TO 44 OF THE PROFIT ACTUALLY REPORTED AND TOTALED 53 MILLION IN FISCAL 1988 OR NEARLY TRIPLE THE REPORTED PROFIT THE SEC SAID THE COMPANY'S FISCAL YEAR ENDS NOV 30 WESTWOOD ONE AND MESSRS BATTISON AND YUSKO AGREED TO AVOID FURTHER VIOLATIONS AS PART OF THE SETTLEMENT THE PARTIES DIDN'T ADMIT OR DENY GUILT IN THE SEC ADMINISTRATIVE ACTION MR BATTISON 44 YEARS OLD RESIGNED FROM THE COMPANY IN 1992 MR YUSKO 38 WHO WAS VICE PRESIDENT FOR FINANCIAL OPERATIONS AND CHIEF ACCOUNTING OFFICER UNTIL DECEMBER 1991 IS NOW SENIOR VICE PRESIDENT FOR FINANCIAL OPERATIONS A WESTWOOD ONE SPOKESWOMAN SAID THE SETTLEMENT BRINGS BASICALLY A VERY OLD MATTER TO A CONCLUSION WITHOUT ANY FINE OR FINANCIAL PENALTY TO THE COMPANY WHILE RELIEVING IT OF THE CONSIDERABLE FINANCIAL BURDEN OF CONTINUED LITIGATION MESSRS BATTISON AND YUSKO COULDN'T BE REACHED FOR COMMENT THE SEC CHARGED THAT DURING THE TWO YEARS WESTWOOD ONE HAD ENGAGED IN IMPROPER REVENUERECOGNITION PRACTICES TO AVOID REPORTING ITS FIRST QUARTERLY OPERATING LOSS SINCE THE COMPANY'S 1984 INITIAL PUBLIC OFFERING AMONG THE SEC CHARGES WERE THAT THE COMPANY HAD FAILED TO DISCLOSE MATERIAL INFORMATION ABOUT ITS OPERATING RESULTS FINANCIAL STATEMENT AND ACCOUNTING POLICIES SPECIFICALLY THE AGENCY SAID WESTWOOD ONE HAD PLACED IMPROPER VALUES ON RADIO ADVERTISEMENTS SOLD IN NONCASH EXCHANGES OF ADVERTISING TIME AND HAD RECORDED SOME ADVERTISINGCONTRACT REVENUE PREMATURELY AMONG OTHER ITEMS THE SEC LISTED AS IMPROPERLY ACCOUNTED FOR WERE WESTWOOD ONE EXECUTIVE CASH BONUSES IN FISCAL 1987 INTANGIBLE ASSETS RELATED TO THE 1987 ACQUISITION OF THE NBC RADIO NETWORK AND AMOUNTS INVOLVED WITH NBC'S ACQUISITION OF RIGHTS TO BROADCAST THE 1988 SUMMER OLYMPICS FROM SEOUL SOUTH KOREA WESTWOOD ONE WHICH OPERATES THE MUTUAL BROADCASTING SYSTEM THE NBC RADIO NETWORK AND OTHER RADIO NETWORKS HAD DISCLOSED THAT SEC SETTLEMENT TALKS WERE UNDER WAY IN A FILING CONNECTED WITH WESTWOOD ONE'S AGREEMENT TO BUY THE RADIO NETWORK BUSINESS OF INFINITY BROADCASTING CORP'S UNISTAR RADIO NETWORKS INC UNIT IN NASDAQ STOCK MARKET TRADING WESTWOOD ONE SHARES ROSE 125 CENTS APIECE TO 8 9401270144 940127 INTERNATIONAL PHILIP MORRIS UNIT SELLS STAKE MADRID PHILIP MORRIS ESPANA SA THE SPANISH UNIT OF FOOD AND TOBACCO CONCERN PHILIP MORRIS COS OF THE US SOLD ITS 18 STAKE IN THE SPANISH STATERUN TOBACCO MONOPOLY TABACALERA SA A TABACALERA SPOKESMAN SAID THE STAKE WAS SOLD TO INSTITUTIONAL INVESTORS AND DECLINED TO DISCLOSE THE PRICE PHILIP MORRIS ESPANA 50HELD BY PHILIP MORRIS AND 50HELD BY TABACALERA PRODUCES AND MARKETS PHILIP MORRIS BRANDS IN SPAIN 9401270143 940127 RAYTHEON GETS NAVY JOB LEXINGTON MASS RAYTHEON CO SAID THE NAVY SPACE AND NAVAL WARFARE SYSTEMS COMMAND AWARDED IT A 797 MILLION CONTRACT TO PRODUCE 62 SATELLITE TERMINALS FOR THE NAVY'S EXTREMELY HIGH FREQUENCY SATELLITE COMMUNICATIONS PROGRAM THE MAKER OF MISSILES AIRCRAFT AND APPLIANCES SAID THE CONTRACT COVERS TERMINALS FOR SHIP SUBMARINE AND SHORE STATIONS AS WELL AS TRAINING DOCUMENTATION AND RELATED SUPPORT ITEMS THE TERMINALS WHICH PROVIDE SECURE COMMUNICATIONS WILL BE PRODUCED AT RAYTHEON'S MANUFACTURING PLANT IN WALTHAM MASS WITH ENGINEERING WORK TO BE PERFORMED AT MARLBORO MASS 9401270142 940127 MARKETING & MEDIA DOW JONES NET ROSE 58 IN FOURTH PERIOD ON 77 REVENUE RISE NET ROSE TO 471 MILLION OR 47 CENTS A SHARE FROM THE YEAREARLIER 298 MILLION OR 30 CENTS A SHARE OPERATING INCOME ROSE 27 TO 1016 MILLION WHILE REVENUE ROSE 77 TO 5127 MILLION IN THE QUARTER REVENUE FOR THE INFORMATIONSERVICES SEGMENT WHICH INCLUDES RESULTS OF THE DOW JONES/TELERATE AND BUSINESS INFORMATION SERVICES GROUPS ROSE 53 TO 2235 MILLION WHILE OPERATING INCOME ROSE 15 TO 432 MILLION FOR BUSINESS PUBLICATIONS INCLUDING THE WALL STREET JOURNAL AND ITS OVERSEAS EDITIONS BARRON'S MAGAZINE AND OTHER PUBLICATIONS REVENUE ROSE 11 TO 2243 MILLION WHILE OPERATING INCOME ROSE 38 TO 506 MILLION WALL STREET JOURNAL ADVERTISING LINAGE ROSE 10 IN THE QUARTER AND 33 IN THE YEAR AT THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS REVENUE ROSE 42 TO 649 MILLION AND OPERATING INCOME ROSE 18 TO 114 MILLION AD LINAGE ROSE 1 IN THE QUARTER AND 06 IN THE YEAR IN THE YEAR DOW JONES NET ROSE 37 TO 1475 MILLION OR 148 A SHARE FROM 1076 MILLION OR 106 A SHARE A YEAR EARLIER YEAREARLIER NET INCLUDED A 108 MILLION OR 11CENTASHARE ONETIME NET CHARGE FOR ACCOUNTING CHANGES AND AN 8 MILLION OR EIGHTCENTASHARE CHARGE FOR WRITEDOWNS OF INVESTMENTS EXCLUDING THE NONRECURRING CHARGES EARNINGS ROSE 17 DOW JONES SAID FULLYEAR INCREASES WERE MOSTLY DUE TO ADVERTISING LINAGE GAINS AT THE WALL STREET JOURNAL AND BARRON'S IMPROVED OPERATING RESULTS FOR THE INFORMATIONSERVICES SEGMENT AND REDUCED INTEREST EXPENSE OPERATING INCOME IN 1993 ROSE 13 TO 3165 MILLION REVENUE ROSE 63 TO 193 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DOW JONES SHARES CLOSED AT 3875 DOWN 25 CENTS 9401270141 940127 REVIEW & OUTLOOK EDITORIAL GOVERNMENTISSUE BABIES WE HEAR A LOT ABOUT WELFARE REFORM AND CERTAINLY THE PRESIDENT FOUND THE TOPIC USEFUL IN HIS STATE OF THE UNION SPEECH BUT WHY DON'T WE LOOK AT SOMETHING SPECIFIC THE 131 BILLION ELEPHANT CALLED MEDICAID MEDICAID HAS MOVED CONSIDERABLY BEYOND ITS ORIGINAL WELFARE BOUNDS WHEN IT WAS CREATED IN THE GREAT SOCIETY IT MAY SURPRISE YOU TO LEARN THAT MEDICAID MEANING FEDERAL AND STATE TAXPAYERS NOW PAYS FOR NEARLY HALF OF THIS COUNTRY'S BIRTHS THAT'S RIGHT UNDER PROVISIONS OF THE PREGNANT WOMEN AND CHILDREN PROGRAM THAT CALIFORNIA CONGRESSMAN HENRY WAXMAN AND OTHERS WEAVED INTO THE MEDICAID LAW IN RECENT YEARS STATES ON AVERAGE ARE PROVIDING PRENATAL OBSTETRIC AND/OR ONE YEAR'S FOLLOWUP SERVICES TO WELL OVER 40 OF WOMEN GIVING BIRTH THE CHILD OF COURSE IMMEDIATELY BECOMES A MEDICAID BENEFICIARY THIS IS ALL BY DESIGN THE SPONSORS ARGUED THAT REDUCING THE PERCENTAGE OF LOWWEIGHT AND OTHERWISE PROBLEM BIRTHS WAS GOOD ECONOMIC AS WELL AS SOCIAL POLICY SO THEY ARRANGED FOR HOUSEHOLDS MAKING 133 OF THE NATIONAL POVERTYLINE INCOME TO BE ELIGIBLE FOR THESE SERVICES IN SOME LOWERCOST STATES THAT NATIONAL STANDARD RESULTS IN PERSONS OF MEDIAN INCOME QUALIFYING MOREOVER STATES HAVE THE OPTION OF RAISING THE BAR IN SOUTH CAROLINA YOU CAN MAKE 185 OF THE US POVERTY LEVEL AND BE COVERED SO 49 OF BIRTHS THERE ARE UNDER MEDICAID THAT'S ONE REASON WHY THIS IS A NATIONAL PHENOMENON AND NOT SEEN JUST IN CALIFORNIA AND TEXAS WHERE MEDICAL WELFARE IS OUT OF CONTROL ANOTHER REASON IS THAT ELIGIBILITY IS BASED ON INCOME IN THE MONTH PRIOR TO APPLICATION THAT MEANS STATES WITH HIGHLY CYCLICAL EMPLOYMENT PATTERNS TYPICAL OF FARMING LOGGING OR MINING ARE LIKELY TO GET A RUSH OF TAXPAID BABIES DURING THE DOWN MONTHS THIS MAY EXPLAIN NORTH DAKOTA'S 43 OF BIRTHS PAID FOR BY MEDICAID OR IDAHO'S NEARLY 42 SHEILA SORENSEN WHO CHAIRS THE SENATE HEALTH AND WELFARE COMMITTEE IN IDAHO ENDORSES THE PROGRAM'S AIMS BUT SAYS IT HAS OPENED THE FLOODGATES BEYOND THE EXPECTATIONS OF ANYONE AT LEAST AT THE STATE LEVEL IN 1987 IDAHO'S MEDICAID BIRTH RATE WAS 67 LAST YEAR IN ONE OF ITS NORTHERN RESOURCEBASED COUNTIES IT EXCEEDED 80 THE PROBLEM AS SHE SEES IT IS THE APPROACH THE PROGRAM TAKES TO ENCOURAGING PREGNANT WOMEN TO ATTEND BETTER TO THEIR CONDITION INSTEAD OF SAYING WHAT ARE YOUR RESOURCES LET'S FIGURE OUT HOW YOU CAN AFFORD THIS MEDICAID LEADS WITH WE'LL PAY FOR IT SHE COMPLAINS THUS THE PREGNANCY BENEFITS ARE ONE MORE ENGINE POWERING THE MEDICAID ROCKET THAT HAS TAKEN THE STATES WHICH COVER FROM 25 TO 45 OF THE COSTS INTO FISCAL ORBIT ALONG WITH THE FEDERAL GOVERNMENT IRONICALLY THE STATES HAVE JUST BEEN HIT AGAIN WITH A WHITE HOUSE MANDATE THAT THEY PROVIDE ABORTIONS HOW SUCCESSFUL THE LATEST WAXMAN INITIATIVE IS PROVING IN REDUCING LOWWEIGHT BIRTHS IS UNCERTAIN MISBEHAVIOR BY THE MOTHER INCLUDING SMOKING AND DRINKING IS THE CHIEF CAUSE OF THAT PROBLEM AND EXPERTS DISAGREE ABOUT THE EFFECTIVENESS OF PRENATAL COUNSELING IN GETTING AT THAT AT THE SAME TIME IT'S UNCLEAR HOW MUCH THE NEW ELIGIBILITY STANDARDS ARE CONTRIBUTING TO THE ALARMING INCREASE IN ILLEGITIMATE BIRTHS CHANGES IN FEDERAL LAW AREN'T THE ONLY FACTOR HERE THE SHRINKING OF HEALTHINSURANCE COVERAGE AMONG LOWWAGE EARNERS HAS LED SOME TO MEDICAID BUT AS DOUGLAS BESHAROV OF THE AMERICAN ENTERPRISE INSTITUTE POINTS OUT THE DYNAMICS OF THIS PROGRAM ALSO SERVE TO WIDEN ITS NET UNDER A GREATER SECTION OF THE AMERICAN MIDDLE CLASS DO WE WANT A SYSTEM THAT CREATES SOCIALIZED MEDICINE FOR SUCH A LARGE PORTION OF AMERICANS AT A CERTAIN POINT IN THEIR LIVES HE ASKS IF YOU ARE HENRY WAXMAN OR SOME LIKEMINDED FOLKS IN THE WHITE HOUSE EAGER TO HOOK MIDDLE AMERICA ON A BENEFIT AND CREATE A CONSTITUENCY FOR ITS PERENNIAL EXPANSION YOU PROBABLY DO AND YOU ARE SUCCEEDING 9401270140 940127 LETTERS TO THE EDITOR STEPHENS RESPONDS TO EDITORIAL HOW SPECULATIVE DOES SOMETHING HAVE TO BE BEFORE YOU FAIL TO MENTION IT IN YOUR EDITORIALS YOUR JAN 18 ATTEMPT TO SOMEHOW LINK BCCI WHITEWATER AND JAMES MCDOUGAL TO STEPHENS IS ABSURD SINCE NO ONE HAS BOTHERED TO ASK I THOUGHT I WOULD GIVE YOU THE TIME FRAME IN WHICH THESE EVENTS OCCURRED THE STOCK PURCHASES IN FIRST AMERICAN BANK BY WHAT WE AND EVERYONE ELSE THOUGHT WERE FOUR INDIVIDUALS ACTING ON THEIR OWN BEHALF OCCURRED IN 1977 THAT WAS THE LAST WE HEARD FROM THEM APPARENTLY IN 1982 AND 1983 WORTHEN BANK LOANED JAMES MCDOUGAL A TOTAL OF 250000 TO FIRST BUY INTO AND THEN ACQUIRE CONTROL IN MADISON GUARANTY THESE LOANS OCCURRED BEFORE OUR INVESTMENT IN WORTHEN IN NOVEMBER 1983 I AM INFORMED THAT WORTHEN SUBSEQUENTLY CHARGED OFF 100000 OF THESE LOANS IN 1987 CLOSING ITS BOOKS ON THE SUBJECT THE WORTHEN LOAN TO THE CLINTON CAMPAIGN WHICH AS I HAVE EXPLAINED BEFORE WAS SECURED BY RECEIVABLES FROM THE FEDERAL ELECTION COMMISSION WAS MADE IN 1992 WE FIRST LEARNED OF THIS LOAN FROM LOCAL NEWSPAPER ACCOUNTS HOW YOU CAN POSSIBLY SUGGEST THERE IS A CONNECTION BETWEEN THESE TOTALLY UNRELATED EVENTS IS BEYOND ME LINKING THEM TOGETHER IN ONE PARAGRAPH AS YOU HAVE NOW DONE TWICE IS TRULY A MODERN JOURNALISTIC FEAT YOU ARE DELIBERATELY COMPRESSING THIS TIME LINE TO SUIT YOUR VIEWS WE EXPECTED THAT YOU WOULD TRY BUT WE NEVER DREAMED YOU WOULD IGNORE THE TOTAL TIME FRAME AND THE ELAPSED TIME BETWEEN THESE EVENTS YOUR DELIBERATE CREATION OF THE FALSE IMPRESSION THAT THESE EVENTS OVERLAP AND ARE CONNECTED JUST CONTINUES THE MALICIOUS PATTERN OF THE WALL STREET JOURNAL TOWARD OUR FIRM AND FAMILY 9401270139 940127 PACIFIC ENTERPRISES AGREES TO SETTLE SUITS TIED TO DIVERSIFICATION LOS ANGELES PACIFIC ENTERPRISES SAID IT AGREED TO A SETTLEMENT THAT WILL PAY 45 MILLION FOR SHAREHOLDER LAWSUITS RELATED TO THE UTILITY COMPANY'S FAILED DIVERSIFICATION EFFORT INCLUDED IN THE SETTLEMENT ARE THE COMPANY'S AUDITORS DELOITTE & TOUCHE AS WELL AS INSURERS PACIFIC ENTERPRISES SAID PACIFIC ENTERPRISES SAID ITS NET COST IN THE SETTLEMENT WILL BE 17 MILLION WHICH THE COMPANY SAID WON'T HAVE A MATERIAL EFFECT ON ITS FINANCIAL POSITION OR ITS DIVIDEND POLICY RESERVES FOR THE SETTLEMENT HAVE BEEN TAKEN EARLIER A SPOKESMAN SAID A SPOKESMAN FOR DELOITTE & TOUCHE DECLINED TO CONFIRM THE ACCOUNTING FIRM'S PARTICIPATION IN THE SETTLEMENT OR TO DISCLOSE THE PORTION OF THE 45 MILLION FOR WHICH THE NEW YORKBASED ACCOUNTING FIRM MIGHT BE LIABLE THE PROPOSED SETTLEMENT IS SUBJECT TO APPROVAL BY THE FEDERAL DISTRICT COURT IN LOS ANGELES WHERE VARIOUS LITIGATION HAS BEEN CONSOLIDATED THE SHAREHOLDER SUITS ALLEGED THAT OFFICERS DIRECTORS AND FORMER DIRECTORS OF PACIFIC ENTERPRISES BREACHED THEIR FIDUCIARY DUTY WITH AN ILLSTARRED DIVERSIFICATION PROGRAM PACIFIC ENTERPRISES' SUDDEN AND IMPROBABLE SWERVE INTO DISCOUNT DRUG AND SPORTS EQUIPMENT RETAILING AS WELL AS OIL AND GAS OPERATIONS ABSORBED MORE THAN 2 BILLION AND THREW THE COMPANY NEAR THE BRINK OF A BANKRUPTCY FILING IN THE PAST TWO YEARS PACIFIC ENTERPRISES HAS DISPOSED OF VARIOUS ASSETS RESTRUCTURED ITS DEBT AND REESTABLISHED ITS DIVIDEND THE COMPANY SAID THE SETTLEMENT DOESN'T DIRECTLY AFFECT SOUTHERN CALIFORNIA GAS CO THE REGULATED UTILITY WHOSE BUSINESS IS NOW PACIFIC ENTERPRISES' SOLE MAJOR OPERATING ENTITY PUTTING THESE LAWSUITS BEHIND US NOW REMOVES THE UNCERTAINTY COST BURDEN AND MANAGEMENT DIVERSION ASSOCIATED WITH DEFENDING THESE COMPLEX MATTERS IN A JURY TRIAL SAID THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIS B WOOD 9401270138 940118 REVIEW & OUTLOOK EDITORIAL ON ETHICS FOUNTAIN OF TRUST ONE OF THE MOST DRAMATIC THEMES OF OUR ERA IS A WORLDWIDE CONFRONTATION WITH CORRUPTION GOVERNMENTS HAVE FALLEN IN THE MIDST OF MONEY SCANDALS IN ITALY JAPAN AND FRANCE BCCI REPRESENTS THE BIGGEST BANK ROBBERY IN HISTORY VICTIMIZING PAKISTANI IMMIGRANTS IN LONDON AND EQUALLY INNOCENT CENTRAL BANKS IN SOUTH AMERICA GOVERNMENTS ARE CONSUMED IN PITCHED WARS WITH GANGS OF DRUG LORDS THIS GLOBAL BACKGROUND SHOULD BE KEPT IN MIND IN APPOINTING OR ASSESSING A SPECIAL PROSECUTOR TO INVESTIGATE THE PRESIDENT OF THE UNITED STATES FOR OUR OWN PART AS WE'VE SAID BEFORE THE WHITEWATER ISSUE OUGHT TO BE THE SUBJECT OF A CONGRESSIONAL INVESTIGATION RATHER THAN A CRIMINAL INQUIRY A SPECIAL PROSECUTOR WILL HAVE IRRECONCILABLE MANDATES IF HE STICKS TOO STRICTLY TO THE LAW THE PUBLIC WILL REMAIN UNSATISFIED AND SKEPTICAL BUT IF HE EXPOSES EVERYTHING OF LEGITIMATE PUBLIC CONCERN HE WILL LOOK ABUSIVE BY NORMAL PROSECUTORIAL STANDARDS ONLY A PUBLIC AIRING THE PURVIEW OF CONGRESS CAN SETTLE THE ULTIMATE ISSUE WHICH IS WHETHER BILL CLINTON HAS BREACHED HIS CLAIM TO OUR TRUST BY THE SAME TOKEN IF SOME LONELY DIOGENES DOES UNDERTAKE THIS SEARCH THERE IS NO TELLING WHERE IT MAY LEAD EVEN IF BILL AND HILLARY CLINTON ARE EVENTUALLY SEEN AS SOMEHOW CULPABLE IN WHITEWATER OF COURSE IT WAS PENNYANTE ON THE SCALE OF GLOBAL SCAMS STILL MR CLINTON DOES HOLD THE MOST POWERFUL AND MOST COMPLICATED OFFICE ON THE GLOBE HE COMES FROM A STATE IT BECOMES INCREASINGLY EVIDENT NOT WELL ATTUNED TO CONTEMPORARY STANDARDS OF CONFLICTS OF INTEREST AND AT THE SAME TIME THE TENTACLES OF GLOBAL CORRUPTION SEEM TO REACH NEARLY EVERYWHERE WE MAY YET GET A DRAMATIC LESSON ON THIS LATTER POINT FROM THE REMARKABLE SETTLEMENT JUST REACHED IN THE BCCI CASE THE SHEIK OF ABU DHABI HAS FINALLY AGREED TO EXTRADITE THE FORMER BCCI CHIEF EXECUTIVE SWALEH NAQVI AND TO GIVE US INVESTIGATORS ACCESS TO BCCI RECORDS SPIRITED OUT OF LONDON TO THE GULF EMIRATE THE SETTLEMENT REPRESENTS A SINGULAR ACHIEVEMENT FOR NEW YORK DISTRICT ATTORNEY ROBERT MORGENTHAU AND HARRY ALBRIGHT THE COURTAPPOINTED TRUSTEE WHO TOOK OVER WASHINGTON'S FIRST AMERICAN BANK WHEN IT WAS SEVERED FROM BCCI OWNERSHIP THEY WERE ONCE TOLD BY EMINENCES OF THE ESTABLISHMENT THAT FURTHER ABU DHABI INVESTMENT WAS THE ONLY RECOURSE FOR FIRST AMERICAN AND AFTER THE ACQUITTAL OF CLARK CLIFFORD ACOLYTE ROBERT ALTMAN THAT THE WHOLE BCCI MATTER SHOULD BE DROPPED YET THE INVESTIGATIONS ARE ALREADY ROLLING FORWARD WITH THE NEW RECORDS WHICH CAN BE CROSSCHECKED AGAINST NEWLY UNCOVERED RECORDS IN LUXEMBOURG MR ALTMAN'S ACQUITTAL LEAVES US WITHOUT AN ANSWER TO THE QUESTION OF HOW A CLAN OF CROOKS CAME TO OWN THE BIGGEST BANK IN WASHINGTON THE HOTBUTTON QUESTION IN THE SEARCH OF THE NEWLY AVAILABLE RECORDS WILL BE WHETHER AMERICAN REGULATORS OR POLITICIANS GOT PAYOFFS IT'S A LONG WAY FROM THE PERSIAN GULF TO THE OZARKS OF COURSE BUT THEN ON THEIR WAY TO BUYING FIRST AMERICAN THE BCCI SURROGATES FOUND THEIR WAY TO LITTLE ROCK WHERE STEPHENS INC HANDLED THEIR BROKERAGE WORTHEN BANK CONTROLLED BY THE STEPHENS FAMILY ALSO WAS THE MOST IMPORTANT SOURCE OF LOANS FOR THE CLINTON CAMPAIGN AND ALSO HELD A LIEN ON JAMES MCDOUGAL'S INTEREST IN MADISON GUARANTY SAVINGS & LOAN OH BY THE WAY THE BCCI CASE IS ALSO RELATED TO THE BNL CASE A MAJOR EMBARRASSMENT FOR THE REPUBLICAN JUSTICE DEPARTMENT IN THAT CASE REMEMBER THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO MADE LOANS BACKED BY THE US DEPARTMENT OF AGRICULTURE THAT FUNDED IRAQ'S WAR MACHINE BCCI LENT A FRIENDLY HAND WITH OVERNIGHT DEPOSITS WHEN THE JUDGE WANTED TO KNOW WHY THE BRANCH MANAGER WAS PROSECUTED WITHOUT MUCH STUDY OF WHETHER ANYONE BACK IN ROME KNEW THE BUSH JUSTICE DEPARTMENT CHARTERED ITS OWN SPECIAL INVESTIGATOR JUDGE FREDERICK LACEY CONCLUDED THAT BCCI WAS INVOLVED BUT ONLY THROUGH THE LOCAL MANAGER BUT THIS HAS NOT STILLED SUSPICION ESPECIALLY SINCE IT SEEMS IMPLAUSIBLE THAT THE BANK HEADQUARTERS WOULDN'T FIND OUT WHAT WAS HAPPENING WITH MORE THAN 2 BILLION IN LOANS SO WHERE WILL FLORIDIAN JANET RENO NOW LOOK FOR HER FOUNTAIN OF TRUST THE ATTORNEY GENERAL MUST FIND SOMEONE PROMINENT ENOUGH TO COMMAND IMMEDIATE RESPECT AND CLARK CLIFFORD IS NO LONGER AVAILABLE SHE HAS TO LOOK FOR SOMEONE WHO HAS NO DEMOCRATIC PARTY CONFLICTS OF INTEREST BUT NO REPUBLICAN PARTY ONES EITHER SHE HAS TO LOOK FOR SOMEONE UNTAINTED BY THE LEAST CONNECTION WITH ANY OF THE SCANDALS AROUND THE GLOBE THE FULL EXTENT OF WHICH ARE STILL UNDER INVESTIGATION AND THE DUTY OF THIS DIOGENES WILL BE EITHER 1 TO IMPUGN THE PRESIDENT OR 2 TELL THE PEOPLE TAKE MY WORD AND STOP ASKING QUESTIONS SOMEHOW IT SEEMS TO US THAT AN OPEN CONGRESSIONAL PROBE FOR ALL ITS PREDICTABLE IMBECILITIES IS A MORE VIABLE ALTERNATIVE SEE RELATED LETTERS LETTERS TO THE EDITOR WORTHEN DISPUTES IMPLIED LINKAGES AND STEPHENS RESPONDS TO EDITORIAL WSJ JAN 27 1994 9401180088 YY94 MM01 9401270137 940106 POLITICS & POLICY AT EMPOWER AMERICA REFUGE FOR CONSERVATIVES FIRST YEAR HAS BEEN A TALE OF MONEY AND EGO BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GEORGE BUSH HADN'T YET LEFT TOWN LAST WINTER WHEN A NEW ADVOCACY GROUP CALLED EMPOWER AMERICA SET UP SHOP TO HOUSE THE BEST AND BRIGHTEST OF THE CONSERVATIVE CAUSE ONE YEAR AND MILLIONS OF DOLLARS LATER THE QUESTION IS JUST WHO IS EMPOWERING WHOM WITH TWO LIKELY REPUBLICAN PRESIDENTIAL CONTENDERS JACK KEMP AND WILLIAM BENNETT ON ITS BOARD EMPOWER AMERICA'S 4 MILLIONPLUS BUDGET AND ITS SUPPLYSIDE FREETRADE SCHOOLCHOICE IDEOLOGY MAKE IT A POLITICAL FORCE TO BE RECKONED WITH IN 1996 BUT ITS FIRST 12 MONTHS ARE ALREADY A CAUTIONARY TALE OF MONEY AND EGO ON THE RIGHT BANKROLLED BY LEVERAGEDBUYOUT ARTIST THEODORE FORSTMANN THE FLEDGLING ORGANIZATION BLENDS WALL STREET MONEY AND THE GRASSROOTS MARKETING TECHNIQUES OF PEROTERA POLITICS FROM HIGHRENT OFFICES JUST BLOCKS FROM THE WHITE HOUSE EMPOWER AMERICA'S FAX MACHINES SPIN OUT WEEKLY REPORTS FOR A NETWORK OF 500 RADIO TALKSHOW HOSTS ACROSS THE COUNTRY MEANWHILE AN AGGRESSIVE MAIL CAMPAIGN HAS YIELDED A LIST OF MORE THAN 100000 DONORS WORTH MILLIONS IN FUTURE CONTRIBUTIONS AND ABLE TO SUSTAIN STAFF AND BIG SALARIES FOR THE ORGANIZATION'S FOUNDERS AT CENTER STAGE IS VIN WEBER EMPOWER AMERICA'S VICE CHAIRMAN AND ONE OF THREE POLITICALLY MINDED BROTHERS WHO HAVE HAD AT LEAST PASSING ASSOCIATION WITH THE ADVOCACY GROUP ELECTED TO THE HOUSE FROM MINNESOTA IN THE REAGAN LANDSLIDE OF 1980 THE PERSONABLE MR WEBER HELPED ENGINEER THE RISE OF NEWT GINGRICH NOW THE HOUSE REPUBLICAN WHIP WHO JOINED THE EMPOWER AMERICA BOARD IN A SHAKEUP LAST MONTH MR WEBER RAN AGROUND IN THE HOUSE BANK SCANDAL OF 1992 AND CHOSE NOT TO RUN FOR REELECTION IN PRIVATE LIFE HE HAS SET OUT TO MAKE MONEY WHILE KEEPING OPEN THE OPTION OF A COMEBACK CAMPAIGN FOR THE SENATE IN 1996 MR WEBER'S NEW WASHINGTON CONSULTING FIRM AND HIS ROLE AS A NATIONAL PUBLIC RADIO COMMENTATOR COMPLEMENT HIS PARTTIME DUTIES AT EMPOWER AMERICA WHERE HE EARNS 150000 A YEAR AND STANDS TO REAP A SMALL FORTUNE FROM STOCK OPTIONS STEERED HIS WAY BY MR FORSTMANN JUST WEEKS AFTER THE ADVOCACY GROUP WAS ANNOUNCED LAST JANUARY THE WALL STREET FINANCIER ADDED MR WEBER TO THE BOARD OF A FORSTMANNCONTROLLED COMPANY SLATED TO GO PUBLIC MONTHS LATER SHARES IN THE COMPANY DEPARTMENT 56 INC A MAKER OF COLLECTIBLE PORCELAIN FIGURES CLOSED YESTERDAY AT 2775 ON THE BIG BOARD BUT ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS MR WEBER HAS THE OPTION TO BUY AS MANY AS 30000 SHARES AT 330 APIECE A DIFFERENCE OF NEARLY 750000 IT WAS VERY GENEROUS MR WEBER SAYS FOR THEIR PART MR BENNETT THE FORMER EDUCATION SECRETARY AND ORSON SWINDLE A FORMER VIETNAM POW LURED FROM ROSS PEROT'S POLITICAL CAMP ARE BOTH PAID IN THE SAME RANGE AS MR WEBER'S SALARY AND TOGETHER WITH THE OLDER HERITAGE FOUNDATION WHERE FORMER ATTORNEY GENERAL EDWIN MEESE WAS PAID MORE THAN 211000 IN 1992 EMPOWER AMERICA ILLUSTRATES HOW SUCH TAXEXEMPT NONPROFITS HAVE BECOME SAFE HARBORS FOR ELITE FIGURES IN THE CONSERVATIVE MOVEMENT FOR EXAMPLE MR BENNETT'S 150000 SALARY FROM EMPOWER AMERICA IS SUPPLEMENTED BY HERITAGE WHICH PAID HIM 89800 IN 1992 AS A DISTINGUISHED SCHOLAR NEITHER HE NOR MR KEMP WILL DISCLOSE THEIR CURRENT SALARIES FROM HERITAGE BUT BOTH ARE PAID HANDSOMELY WHILE KEEPING STAFF AT EMPOWER AMERICA HERITAGE'S OWN FILINGS WITH THE INTERNAL REVENUE SERVICE SHOW THAT ITS PRESIDENT EDWIN FEULNER RECEIVED PAY AND BONUSES VALUED AT MORE THAN 360000 IN 1992 SIGNIFICANTLY MORE THAN HIS COUNTERPARTS AT OTHER WASHINGTON NONPROFITS SUCH AS THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION IN EMPOWER AMERICA'S CASE IT HELPS TO PAY FOR THOSE GENEROUS SALARIES THROUGH DIRECTMAIL APPEALS RUN BY A VIRGINIA COMPANY CALLED RESPONSE DYNAMICS INC OR RDI THE COMPANY HAS A BROAD CORPORATE CLIENTELE BUT IS BESTKNOWN IN THE GOP FOR ITS INVOLVEMENT IN SEVERAL EFFORTS THAT HAVE BEEN CRITICIZED AS ANTITHETICAL TO THE VERY PARTYBUILDINGTYPE IDEAS EMPOWER AMERICA IS SAID TO ADVOCATE IN 1988 RDI MAILED FOR THE NATIONAL SECURITY POLITICAL ACTION COMMITTEE WHOSE INDEPENDENTEXPENDITURE AMERICANS FOR BUSH ORGANIZATION FINANCED THE FAMOUS WILLIE HORTON TELEVISION ADS IN 1992 THE COMPANY WORKED FOR A SECOND INDEPENDENT COMMITTEE THAT TRADED ON THE BUSH NAME IN ITS FUNDRAISING AND WAS CRITICIZED BY THE OFFICIAL BUSH CAMPAIGN AS SIPHONING OFF FUNDS AND BEING COUNTERPRODUCTIVE IN ADDITION THE COMPANY UNTIL LAST SUMMER WAS PART OF A BIZARRE CHALLENGE TO MASSACHUSETTS SEN EDWARD KENNEDY BY A NATIVE GEORGIAN AND OBSCURE REAGANERA AGRICULTURE DEPARTMENT OFFICIAL WHO RAISED MORE THAN 11 MILLION OVER THE 18 MONTHS ENDING LAST JUNE MOST OF WHICH ONLY PAID POSTAL COSTS AND FEES CHARGED BY RDI AND ITS SUBSIDIARIES DAVID KUNKO ONE OF RDI'S FOUNDERS CASTS HIMSELF ONLY AS A BUSINESSMAN AND SAYS THAT WE PUT OUT DIRECT MAIL FOR ANYONE WHO WILL PAY IN THE CASE OF EMPOWER AMERICA'S CONTRACT MR WEBER'S BROTHER JAMES A WASHINGTON CONSULTANT WHO HAS LONG HAD DEALINGS WITH RDI FOR BUSINESS AND POLITICAL CLIENTS WAS INSTRUMENTAL IN SEEING THAT THE VIRGINIA COMPANY WON THE WORK BUT ALL SIDES DENY THAT THE YOUNGER BROTHER BENEFITED FINANCIALLY FROM HIS ADVISORY ROLE RDI ESTIMATES THAT EMPOWER AMERICA COULD NET AT LEAST 3 MILLION A YEAR FROM THE DONOR LIST ALREADY COMPILED THIS MONEY WILL BE NEEDED SINCE MR FORSTMANN WHO PUT UP 1 MILLION OF HIS OWN MONEY AND HELPED RAISE SEVERAL MILLION MORE FOR EMPOWER AMERICA LAST YEAR HAS DISTANCED HIMSELF A BIT FROM THE ENTERPRISE AND ITS CHIEF POLITICAL BENEFICIARY MR KEMP MR FORSTMANN WHO DECLINED TO BE INTERVIEWED FOR THIS ARTICLE LAST MONTH GAVE UP THE CHAIRMANSHIP OF EMPOWER AMERICA AND HE HAS SHOWN SIGNS OF DEVELOPING MORE OF A RELATIONSHIP WITH THAT OLD SUPPLYSIDE NEMESIS AND POTENTIAL KEMP RIVAL SENATE MINORITY LEADER ROBERT DOLE WITH THE ENCOURAGEMENT OF TEXAS DEAL MAKER AND FORMER DEMOCRATIC NATIONAL CHAIRMAN ROBERT STRAUSS THE TWO MEN DINED TOGETHER AT MR FORSTMANN'S NEW YORK RESIDENCE IN JULY AND THE FINANCIER SEPARATELY CONTRIBUTED AN ESTIMATED 50000 TO MR DOLE'S OWN FLEDGLING NONPROFIT ORGANIZATION THE BETTER AMERICA FOUNDATION IN LATE SEPTEMBER MEANWHILE JUDE WANNISKI THE SUPPLYSIDE ADVOCATE AND FORMER WALL STREET JOURNAL EDITORIAL WRITER WHO IS A LONGTIME FORSTMANN ASSOCIATE HAS BEGUN TO PLAY AN ADVISORY ROLE TO SEN DOLE A RECENT MEMO FROM MR WANNISKI TO SEN DOLE GUSHES WITH A SECONDHAND ACCOUNT THAT MARGARET THATCHER THINKS THE KANSAN HAS IT ALL AND AFTER YEARS OF LOYALTY TO MR KEMP MR WANNISKI SPEAKS LIKE A PROUD TUTOR OF MR DOLE'S LATE CONVERSION AND OPENNESS TO THE IDEA OF ELIMINATING THE CAPITALGAINS TAX A DOLE PRESIDENCY WOULD CUT THE CAPITAL GAINS TAX OR THE INDEX AT LEAST OR MAYBE ELIMINATE THEM ALTOGETHER THE SENATOR SAID ON NBC'S MEET THE PRESS LAST WEEK MR WANNISKI SAYS THAT EMPOWER AMERICA IS SPINNING ITS WHEELS BUT THE SHIFTING ALLIANCES ARE COLORED BY A FEUD BETWEEN HIM AND ANOTHER OLD REAGANITE FORMER OFFICE OF MANAGEMENT AND BUDGET ECONOMIST LAWRENCE KUDLOW WHO HAS BECOME A MAJOR PLAYER IN THE KEMPBENNETTWEBER ADVOCACY GROUP MR WANNISKI DENIES THERE IS ANY CONNECTION BETWEEN HIS FEELINGS ABOUT EMPOWER AMERICA AND HIS FEELINGS ABOUT MR KUDLOW BUT HE ACCUSES MR KUDLOW NOW CHIEF ECONOMIST AT BEAR STEARNS & CO OF GOING BEHIND HIS BACK IN 1992 WHEN BOTH WERE ADVISING THE RUSSIANS ON FINANCIAL MATTERS MR KUDLOW SAYS IT WAS THE RUSSIANS WHO WERE UNHAPPY WITH MR WANNISKI MEANWHILE MR FORSTMANN'S DEPARTURE DOESN'T MEAN HE HAS SEVERED ALL TIES HE IS NOW FOUNDING CHAIRMAN AND THE GROUP IS MAILING COPIES OF A RECENT SPEECH BY HIM TO 25000 SELECT OPINIONMAKER MEMBERS BUT HIS MOVE HAS TRIGGERED A RESHUFFLE AT THE TOP OF THE ORGANIZATION WITH MALCOLM S FORBES JR OF THE MAGAZINE FAMILY BECOMING CHAIRMAN MR WEBER MOVING FROM PRESIDENT TO VICE CHAIRMAN AND BILL DAL COL A FORMER KEMP AIDE BECOMING PRESIDENT SITTING IN THE GROUP'S HEADQUARTERS MR DAL COL CAN ONLY LAUGH ABOUT THE TURMOIL AROUND HIM AND TRY TO LOOK AHEAD SOUNDING MORE LIKE A MARKETING MANAGER THAN A CRUSADING POLITICAL ACTIVIST HE HAPPILY DESCRIBES HOW NEXT WEEK'S FIRST OF SEVEN ISSUES SCHOOLS PLANNED FOR CANDIDATES THIS YEAR IS SOLD OUT A MICROCHIPBASED HIGHTECH ACTUALITY SERVICE IS ALREADY FEEDING TAPED QUOTES TO RADIO STATIONS HE ADDS AND THERE WILL EVEN BE AN 800 NUMBER WHERE CANDIDATES CAN CALL IN AFTER LABOR DAY TO GET ADVICE ON EMPOWER AMERICA'S ISSUES SUCH AS SCHOOL CHOICE OR TAXES SIX PM TO MIDNIGHT EASTERN STANDARD TIME HE SAYS SMILING SEE RELATED LETTER LETTERS TO THE EDITOR NOTHING SINISTER ABOUT IT IT JUST OFFENDS LIBERALS WSJ JAN 27 1994 9401060107 YY94 MM01 9401270136 940127 MEDICALCONTROL BUYS FIRM DALLAS MEDICALCONTROL INC SAID IT PURCHASED THE ASSETS OF GENESIS CLAIM REVIEW TERMS WERE NOT DISCLOSED THE COMPANY SAID GENESIS BASED IN DALLAS PROVIDES REVIEW AND NEGOTIATION OF LARGE INPATIENT MEDICAL CLAIMS MEDICALCONTROL SAID IT WILL COMBINE GENESIS WITH ITS OWN CLAIM REVIEW AND NEGOTIATION SERVICE VALUECHECK THE NEW SERVICE WILL BE CALLED GENESIS/VALUECHECK 9401270135 940127 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 FIRST FIDELITY BANCORP 200 MILLION OF SENIOR FLOATINGRATE NOTES DUE AUG 2 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE FLOATS AND PAYS QUARTERLY AT 10 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE THE FIRST COUPON IS TO WILL BE SET MONDAY RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO RIGGS NATIONAL CORP 125 MILLION OF SUBORDINATED DEBENTURES DUE FEB 1 2006 PRICED AT PAR TO YIELD 850 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE FEB 8 1999 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WILL PAY QUARTERLY AND FLOAT WEEKLY AT 21 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THREEMONTH TREASURY BILLS ARE PRESENTLY YIELDING 2962 THE FIRST COUPON IS TO BE SET WEDNESDAY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO USAIR GROUP INC 175 MILLION OF SENIOR UNSECURED NOTES DUE FEB 1 2001 PRICED AT PAR TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED BA3 BY MOODY'S AND SINGLEB PLUS BY S&P THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CMG INFORMATION SERVICES INC INITIAL PUBLIC OFFERING TUESDAY OF 12 MILLION COMMON SHARES PRICED AT 8 THROUGH AN UNDERWRITING GROUP MANAGED BY PIPER JAFFRAY INC CORNING INC EIGHT MILLION SHARES OF COMMON STOCK SOLD AT 30 APIECE IN A SINGLEBLOCK TRANSACTION TO GOLDMAN SACHS & CO O'SULLIVAN INDUSTRIES HOLDINGS INC INITIAL OFFERING OF 148 MILLION COMMON SHARES PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PERSONNEL MANAGEMENT INC INITIAL PUBLIC OFFERING OF 716092 SHARES OFFERED AT 850 APIECE THROUGH COMANAGERS DAVID A NOYES & CO THE LEAD UNDERWRITER AND HOWE BARNES INVESTMENTS INC PLAYTEX PRODUCTS INC INITIAL OFFERING OF 20 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SECURITYCONNECTICUT CORP INITIAL OFFERING OF 85 MILLION COMMON SHARES OF PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO USXUS STEEL GROUP 45 MILLION COMMON SHARES PRICED AT 41 APIECE THROUGH UNDERWRITER MORGAN STANLEY & CO MAINE STATE HOUSING AUTHORITY 110 MILLION 1994 SERIES A MORTGAGEPURCHASE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 435 IN 2000 TO 575 IN 2033 MOODY'S IS EXPECTED TO RATE THE BONDS SINGLEA1 AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 5005 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199429 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS CAISSE NATIONALE DE CREDIT AGRICOLE FRANCE 100 MILLION OF ZEROCOUPON EQUITYLINKED BONDS DUE FEB 10 1997 AT ISSUE PRICE PAR VIA IBJ INTERNATIONAL LTD REOFFERED AT PAR REDEEMABLE AT PAR PLUS 50 OF APPRECIATION OF HONG KONG STOCK INDEX FEES 15 POINTS COMMONWEALTH BANK OF AUSTRALIA AUSTRALIA 100 MILLION OF RANGE FLOATINGRATE EURONOTES DUE FEB 24 1995 AT ISSUE PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR PLUS 60 BASIS POINTS INTEREST ACCRUES ON DAYS WHEN THREEMONTH LIBOR IS BETWEEN ZERO AND 3875 IN FIRST SIX MONTHS AND IS BETWEEN ZERO AND 44 IN SECOND SIX MONTHS GUARANTOR COMMONWEALTH OF AUSTRALIA FEES UNDISCLOSED CREDIT NATIONAL FRENCH AGENCY 250 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1997 AT ISSUE AND REOFFER PRICE 9977 VIA CREDIT SUISSE FIRST BOSTON LTD PAYABLE QUARTERLY AT THREEMONTH DOLLAR LIBOR FLAT CALLABLE QUARTERLY FROM SECOND ANNIVERSARY AT PAR FEES 015 POINT EKSPORTFINANS ASNORWEGIAN AGENCY 15 BILLION SWEDISH KRONOR OF GLOBAL BONDS PRICED AS 6875 DUE FEB 9 2004 AT AN ISSUE AND FIXED REOFFER PRICE OF 99296 VIA LEAD UNDERWRITER SALOMON BROTHERS INTERNATIONAL LTD AT THE FIXED REOFFER PRICE THE BONDS YIELD 698 A MARGIN OF 24 BASIS POINTS OVER THE COMPARABLE SWEDISH GOVERNMENT BOND SERIES 1033 THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED DOUBLEA1 BY MOODY'S AND TRIPLEA BY S&P COMMISSIONS TOTAL 0625 POINT WITH 0375 POINT AS SELLING CONCESSION AND 025 POINT FOR MANAGEMENT AND UNDERWRITING COMBINED THE LONDONLISTED BONDS ARE DENOMINATED IN 10000 KRONOR INTEREST IS PAYABLE ANNUALLY ERSTE OESTERREICHISCHE SPARCASSE BANK AG AUSTRIA 150 MILLION MARKS OF 575 EUROBONDS DUE MAR 7 2001 AT ISSUE PRICE 10135 VIA COMMERZBANK AG BONDS YIELD 596 AT 988 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 33 BASIS POINTS OVER COMPARABLE GERMAN BUND FEES 275 POINTS LESS 02 POINT FOR LEAD MANAGER HMC MORTGAGE NOTES 11 PLC SPECIALPURPOSE VEHICLE 100 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 2021 AT ISSUE PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 99925 PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 025 BONDS SECURED ON FIRST RESIDENTIAL MORTGAGES ORIGINATED IN UK OF HOUSEHOLD MORTGAGE CORP CALLABLE FROM MARCH 1997 AT PAR FEES UNDISCLOSED INDUSTRIAL CREDIT & INVESTMENT CORP INDIA 175 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 3 2000 AT ISSUE PRICE PAR VIA JP MORGAN SECURITIES LTD INDICATED COUPON 275 TO 325 CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 13 TO 18 TERMS ARE TO BE FIXED BY FEB 4 CALLABLE YEARS FOUR AND FIVE AT PAR IF SHARE PRICE IS AT LEAST 130 OF CONVERSION PRICE AFTER YEAR FIVE BONDS CALLABLE ANY TIME AT PAR FEES 25 POINTS NATIONAL & PROVINCIAL BUILDING SOCIETY UNITED KINGDOM 150 MILLION OF FLOATINGRATE EURONOTES DUE FEB 10 1999 AT ISSUE AND REOFFER PRICE 9998 VIA GOLDMAN SACHS INTERNATIONAL LTD PAYABLE QUARTERLY AT 10 BASIS POINTS OVER THREEMONTH LIBOR FEES 015 POINT TANAYONG PUBLIC CO THAILAND 125 MILLION OF CONVERTIBLE EUROBONDS DUE MARCH 1 2004 AT ISSUE PRICE PAR VIA SWISS BANK CORP INDICATED COUPON 35 TO 4 OVERALLOTMENT OPTION 15 CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 10 TO 15 FROM APRIL 11 TO JAN 30 2004 TERMS FIXED BY FEB 2 CALLABLE AFTER FIVE YEARS IF SHARE PRICE AT LEAST 140 OF CONVERSION PRICE PUT OPTION EXERCISABLE ON FIFTH ANNIVERSARY AT PRICE TO YIELD 100 TO 200 BASIS POINTS OVER COMPARABLE US TREASURY FEES 25 POINTS UNITED ENGINEERS MALAYSIA BERHAD MALAYSIA 200 MILLION OF CONVERTIBLE EUROBONDS DUE MARCH 1 2004 AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL AND INDOSUEZ CAPITAL INDICATED SEMIANNUAL COUPON 2 TO 25 OVERALLOTMENT OPTION 15 CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 15 TO 18 TERMS ARE TO BE FIXED NEXT WEEK AT END OF FIFTH YEAR PUT OPTION EXERCISABLE AT PRICE TO YIELD ABOUT 504 THE PREVAILING YIELD ON FIVEYEAR US TREASURY CALLABLE AFTER TWO YEARS AT ACCRETED VALUE IF SHARE PRICE EXCEEDS 130 OF CONVERSION PRICE FOR 30 CONSECUTIVE TRADING DAYS 9401270134 940127 POWELL INDUSTRIES UNIT GETS JOB HOUSTON POWELL INDUSTRIES INC SAID ONE OF ITS UNITS WILL RECEIVE 13 MILLION FROM THE STATE OF MASSACHUSETTS TO INSTALL COMPUTERCONTROLLED HIGHWAY SURVEILLANCE AND TRAFFIC CONTROL DEVICES POWELL SAID THAT FIGURE REPRESENTS THE UNIT'S SHARE OF A 52 MILLION CONTRACT AWARDED TO A JOINT VENTURE OF PERINI CORP BASED IN FRAMINGHAM MASS AND THE POWELL UNIT TRANSDYN CONTROLS INC FOR ITS FISCAL YEAR ENDED OCT 31 POWELL EARNED 29 MILLION OR 28 CENTS A SHARE AFTER AN ACCOUNTING ADJUSTMENT ON REVENUE OF 1381 MILLION 9401270133 940127 MARKETING & MEDIA PEPSICO INC PLANS CHINA INVESTMENT OF 350 MILLION BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID IT PLANS TO INVEST 350 MILLION IN CHINA IN THE NEXT FIVE YEARS MATCHING EQUALLY BULLISH EFFORTS BY COCACOLA CO IN THE LARGELY UNTAPPED MARKET PEPSI SAID IT RECEIVED GOVERNMENT APPROVAL TO BUILD 10 BOTTLING PLANTS IN CHINA WHICH WILL RESULT IN A 350 MILLION INVESTMENT BY THE COMPANY AND A 250 MILLION INVESTMENT BY ITS LOCAL JOINTVENTURE PARTNERS PEPSICO BASED IN PURCHASE NY ALREADY OWNS EIGHT BOTTLING PLANTS IN CHINA AND HAS INVESTED 100 MILLION THERE EARLY IN THE NEXT CENTURY WE EXPECT CHINA TO BE THE SECONDLARGEST MARKET AFTER THE US SAYS JAMES LAWRENCE PRESIDENT OF PEPSICOLA INTERNATIONAL'S ASIA MIDDLE EAST AND AFRICA DIVISION MICHAEL BRANCA ANALYST WITH NATWEST SECURITIES CORP SAYS IN SUCH A RAPIDLY EXPANDING MARKET ALL INDUSTRY PARTICIPANTS WILL BE BENEFICIARIES OF GROWTH COCACOLA WHICH RUNS 13 BOTTLING PLANTS IN CHINA ANNOUNCED PLANS LAST YEAR TO BUILD AN ADDITIONAL 10 PLANTS FOR A TOTAL INVESTMENT IN CHINA BY THE COMPANY AND ITS JOINTVENTURE PARTNERS OF ABOUT 500 MILLION BY 1996 DALLASBASED DR PEPPER/SEVENUP COS HAS TEAMED UP WITH A BOTTLER IN SOUTHERN CHINA TO BUILD A CONCENTRATE PLANT FOR DR PEPPER AND OTHER FLAVORED SODAS AND IT IS NOW CONSIDERING PLANS TO EXPAND BOTTLING OPERATIONS IN THE REGION THIS YEAR COCACOLA BASED IN ATLANTA HOLDS ABOUT 12 OF CHINA'S SOFTDRINK MARKET COMPARED WITH 5 FOR PEPSI ACCORDING TO BEVERAGE DIGEST A TRADE PUBLICATION THE COMPANIES ARE COMPETING AGAINST ABOUT 3000 LOCAL BRANDS OF WHICH ORANGE DRINKS ARE THE MOST POPULAR THE US BRANDS SELL FOR ABOUT 10 TO 15 CENTS FOR AN EIGHTOUNCE RETURNABLE GLASS BOTTLE COMPARED WITH FIVE OR 10 CENTS FOR LOCAL BRANDS ACCORDING TO PEPSI'S MR LAWRENCE NOW WITH DISTRIBUTION OF US BRANDS LIMITED PRIMARILY TO COASTAL CITIES 50CENT CANS OF PEPSI ARE BEING RESOLD BY MIDDLEMEN IN THE COUNTRY'S INTERIOR FOR 75 CENTS OR MORE MR LAWRENCE SAYS AS PART OF ITS INVESTMENT PEPSI PLANS TO BLANKET COUNTRYSIDE MARKET STALLS WITH ICE CHESTS AND COOLERS FOR ITS PRODUCTS AS WELL AS SIGNS THE CHINESE SOFTDRINK MARKET ACCOUNTED FOR JUST 700 MILLION CASES LAST YEAR OR ABOUT 13 SERVINGS A PERSON COMPARED WITH ABOUT EIGHT BILLION CASES OR NEARLY 800 SERVINGS A PERSON IN THE US 9401270132 940127 ENTERPRISE QUAKE PRICEGOUGING IS TEMPTING BUT SHORTSIGHTED IN ADDITION TO THE POSSIBLE LEGAL PENALTIES CUSTOMERS WILL REMEMBER IT BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AFTER LAST WEEK'S EARTHQUAKE MANY SMALL BUSINESSES HERE ARE GRAPPLING WITH THE CLASSIC POSTDISASTER TEMPTATION TO GOUGE SOME ARE SUCCUMBING EAGERLY AND MANY CONSUMERS ARE EXPECTING THE WORST BUT OTHER BUSINESS OWNERS ARE TURNING THE DISASTER TO A DIFFERENT PURPOSE THAT OF BUILDING THEIR REPUTATIONS EVEN BEYOND THE MORAL CONSIDERATIONS THEY THINK IT WILL PAY IN THE LONG RUN TAKE DAVE PANNU OWNER OF A SEVENEMPLOYEE STRUCTURAL ENGINEERING FIRM HE WAS APPROACHED AFTER THE QUAKE BY A NERVOUS TAJDIN PUNCH WHO SAYS HE WAS PREPARED TO SPEND THOUSANDS OF DOLLARS TO REINFORCE THE FOUNDATION OF HIS HOUSE BUT MR PANNU TOLD MR PUNCH THE HOUSE DIDN'T NEED REINFORCING WORK DESPITE A CRUMBLED CHIMNEY AND SOME SURFACE CRACKS IN THE FOUNDATION I ONLY RECOMMEND WHAT IS NECESSARY SAYS MR PANNU MY PHILOSOPHY IS YOU'LL NEVER FIND A THIEF GETTING RICH WHILE MR PANNU LOST SOME BUSINESS HE WON A FAN WHEN TALK AT MR PUNCH'S CONVENIENCE STORE TURNS TO EARTHQUAKE PRICEGOUGERS MR PUNCH OFFERS A RINGING ENDORSEMENT OF THE ENGINEER HE WAS EXTREMELY ABOVEBOARD HE TOTALLY IMPRESSED ME SAYS MR PUNCH WHO ADDS THAT OTHER ENGINEERS WERE ASKING AS MUCH AS 500 FOR THE INSPECTION THAT MR PANNU MADE FOR 250 THE OBVIOUS TEMPTATION FOR ENTREPRENEURS WHOSE PRODUCTS OR SERVICES ARE SUDDENLY IN BIG DEMAND AFTER A DISASTER IS TO CHARGE WHAT THE MARKET WILL BEAR THE SECONDOLDEST BUSINESS IS MINING MISERY SAYS JON P GOODMAN DIRECTOR OF THE ENTREPRENEUR PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA SINCE TIME IMMEMORIAL TRAGEDY HAS BEEN A TREMENDOUS ECONOMIC OPPORTUNITY ALREADY FOR EXAMPLE EIGHT 7ELEVEN FRANCHISEES IN THE LOS ANGELES AREA HAVE HAD THEIR FRANCHISES TERMINATED BY SOUTHLAND CORP FOR QUAKERELATED GOUGING THE DALLASBASED FRANCHISER SAYS BUT MS GOODMAN AND OTHERS ARGUE THAT ENTREPRENEURS WOULD DO WELL TO RESIST THE URGE TO MAKE A QUICK BUCK AND CONCENTRATE INSTEAD ON WINNING LONGTERM CUSTOMERS ONE OF THE HARDEST THINGS IS TO DEVELOP REPEAT BUSINESS SAYS MS GOODMAN THE MARK OF A SOLID BUSINESS IS A LOYAL CLIENTELE THAT'S WHAT ALLOWS YOU TO PROJECT YOUR REVENUES AND YOUR EXPENSES OTHERWISE YOU'RE FLYING BLIND DENNIS BLACK WHO OWNS A NOVELTY SHOP SAYS THAT ON THE DAY OF THE QUAKE HIS SON WAS CHARGED 16 FOR TWO SMALL BOTTLES OF WATER WHILE MR BLACK SAYS HE WOULD LIKE TO HANG THE OWNER OF THE CONVENIENCE STORE WHERE HIS SON BOUGHT THE WATER HE WILL SETTLE FOR TRYING TO PERSUADE NEIGHBORS NOT TO SHOP THERE SOME PROFITEERS MAY LOSE MORE THAN CUSTOMERS VIOLATORS OF A PRICEGOUGING ORDINANCE THAT LOS ANGELES ENACTED FOLLOWING THE 1992 RIOTS FACE A 1000 FINE AND SIX MONTHS IN JAIL FOR EACH VIOLATION A TOLLFREE PHONE LINE HAS RECEIVED MORE THAN 500 COMPLAINTS SINCE THE QUAKE SAYS A SPOKESWOMAN FOR THE CITY OF COURSE IT IS POSSIBLE TO CASH IN ON A DISASTER WITHOUT RIPPING OFF THE PUBLIC TWO HOURS AFTER THE CALIFORNIA QUAKE ROGER C STULL PRESIDENT OF PENHALL INTERNATIONAL INC AN ANAHEIM CONSTRUCTION COMPANY BEGAN DEVELOPING A PLAN TO NOTIFY THE STATE OF HIS FIRM'S AVAILABILITY AND TO PROVIDE COST ESTIMATES BUT THAT WAS JUST GOOD BUSINESS HE SAYS WE WANTED TO BE ABLE TO PERFORM AS FAST AND AS EFFICIENTLY AND AS SAFELY AS WE COULD HE ADDS MR STULL PREDICTS QUAKEREPAIR WORK WILL PRODUCE 10 MILLION TO 20 MILLION IN NEW BUSINESS FOR HIS FIRM OVER THE NEXT YEAR OR TWO CURRENTLY THE COMPANY HAS ABOUT 74 MILLION IN ANNUAL REVENUE A TRANSPORTATIONRELATED BUSINESS THAT WILL PROSPER IN THE AFTERMATH OF THE QUAKE IS THOMAS BROS MAPS WHICH MAKES THE BOOKSIZE STREET GUIDES THAT MANY HERE FIND INDISPENSIBLE TELEPHONE INQUIRIES WERE UP 15 TO 345 CALLS A DAY IN THE WEEK AFTER THE QUAKE PEOPLE IN LOS ANGELES HAVE RELIED ON FREEWAYS FOR YEARS SAYS TED HOLT THE COMPANY'S VICE PRESIDENT OF SALES AND MARKETING BUT NOW THEY'VE GOT TO RELY ON SURFACE STREETS THAT THEY'RE NOT FAMILIAR WITH AS SOUTHERN CALIFORNIANS RECALCULATED THEIR COMMUTES BECAUSE OF COLLAPSED FREEWAYS AND BLOCKED STREETS WHOLESALE SALES OF THOMAS GUIDES IN THE LOS ANGELES AND VENTURA COUNTY REGIONS IMMEDIATELY JUMPED 10 BUT THOMAS BROS SAYS IT HAS NO PLANS TO INCREASE PRICES PACIFIC GLASSWORKS INC WHICH DOES GLASSREPAIR AND BOARDUP WORK SAW ITS VOLUME OF CUSTOMER CALLS JUMP SIXFOLD AFTER THE EARTHQUAKE SAYS GALE KLAVER THE FIRM'S COOWNER SOME WOULDBE NEW CUSTOMERS OFFERED TO PAY AS MUCH AS DOUBLE THE FIRM'S NORMAL PRICES FOR QUICK SERVICE SHE SAYS SHE TURNED THEM ALL DOWN AND TOLD THEM HER COMPANY WOULD GET TO THE WORK AS SOON AS IT COULD IT'S NOT THE TIME TO INCREASE THE RATES MRS KLAVER SAYS IT'S TIME TO RECUPERATE AND HELP PEOPLE GET BACK ON THEIR FEET JOE GOODMAN OWNER OF MARK THE CARPETBAGGER SAYS HIS CARPETCLEANING FIRM RECEIVED MORE THAN 65 CALLS FROM POTENTIAL NEW CUSTOMERS IMMEDIATELY AFTER THE QUAKE ABOUT TWICE THE USUAL NUMBER BUT HE TURNED AWAY PRACTICALLY ALL OF THEM BECAUSE HE IS BOOKED THROUGH MIDFEBRUARY MR GOODMAN SAYS HE NEVER EVEN CONSIDERED PUTTING OFF HIS REGULAR CUSTOMERS IN FAVOR OF HIGHERPAYING JOBS FROM QUAKE VICTIMS A PRICE INCREASE ISN'T NECESSARILY PRICE GOUGING OF COURSE CHRIS DAVIS MARKETING DIRECTOR OF CHIMNEY CHARM INC SAYS THE CHIMNEYSERVICING FIRM HAS BOOSTED RATES BY 10 BUT FOR A REASON HE SAYS THE EXTRA REVENUE IS NECESSARY TO CUSHION THE BUSINESS AGAINST LIABILITY FROM INJURY TO HIS WORKERS AND DAMAGE TO BUILDINGS THAT ADJOIN CHIMNEY REPAIR SITES WE'VE HAD A LOT OF DISCUSSION ON PRICES DAVIS SAYS BUT THERE'S NO BLUEBOOK FOR THIS BUSINESS SO WE'RE TRYING TO REMAIN ETHICAL AND DELIVER A DECENT PRODUCT AT AN ETHICAL PRICE 9401270131 940127 INTERNATIONAL ITALY'S BERLUSCONI QUITS FININVEST POST TO ENTER POLITICS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FLAMBOYANT ITALIAN MEDIA TYCOON SILVIO BERLUSCONI ANNOUNCED HE WILL STEP DOWN AS CHAIRMAN OF HIS TELEVISION AND RETAIL EMPIRE GRUPPO FININVEST TO HEAD UP A NEW CENTERRIGHT POLITICAL PARTY THE DECISION FURTHER ENLIVENS THE ALREADY FRANTIC CONTEST AMONG A FRACTURED GROUP OF CENTER AND RIGHTWING PARTIES TO FORM A COHESIVE ALLIANCE BEFORE ITALY'S MARCH 2728 NATIONAL ELECTIONS SAYING HE DIDN'T WANT TO LIVE IN A COUNTRY GOVERNED BY IMMATURE FORCES AND MEN CLOSELY TIED TO A POLITICALLY AND ECONOMICALLY BANKRUPT PAST THE 57YEAROLD MR BERLUSCONI CALLED FOR CREATION OF A NEW ITALIAN MIRACLE TOGETHER WITH OTHER DEMOCRATIC FORCES IN ORDER TO COUNTER THE FORMER COMMUNIST LEFTWING ALLIANCE THE LEFT ALLIANCE EMERGED VICTORIOUS IN LAST NOVEMBER'S MUNICIPAL ELECTIONS MR BERLUSCONI WHO ALSO OWNS THE POPULAR AC MILAN SOCCER TEAM GAVE NO SPECIFIC DETAILS OF THE PLATFORM FOR HIS NEW PARTY WHICH IS CALLED FORZA ITALIA A COMMON SOCCER CHEER MEANING GO ITALY OUR LEFTISTS PRETEND TO HAVE CHANGED THEY SAY THEY HAVE BECOME LIBERAL DEMOCRATS BUT IT'S NOT TRUE MR BERLUSCONI SAID IN HIS PRERECORDED MESSAGE BROADCAST ON ONE OF HIS CHANNELS AND LATER THE STATE RAI TV THEIR MEN ARE STILL THE SAME THEIR MENTALITY THEIR CULTURE THEIR PROFOUND CONVICTIONS THEIR BEHAVIOR ARE ALL THE SAME OPPOSED TO THE FREE MARKET PRIVATE INITIATIVE PROFIT AND THE INDIVIDUAL HE SAID OVER THE PAST SEVERAL MONTHS MR BERLUSCONI HAS URGED PARTY LEADERS ON THE CENTER AND RIGHT TO UNITE AGAINST THE LEFT IN THE MEANTIME HE SET UP MORE THAN 600 FORZA ITALIA CLUBS THROUGHOUT THE COUNTRY PREPARING FOR A POSSIBLE BID UNDER NEW LAWS THE LEGISLATURE WILL BE ELECTED THROUGH A RELATIVE MAJORITY SYSTEM IN MARCH INSTEAD OF THE OLD SYSTEM OF PROPORTIONAL REPRESENTATION AS A RESULT THE POLITICAL ARENA HAS BECOME A FREEFORALL WITH OLD AND NEW FRAGMENTED PARTIES SCRAMBLING TO BUILD LEFT AND RIGHT BLOCS AHEAD OF ELECTIONS MR BERLUSCONI'S POLITICAL ASPIRATIONS HAVE INCITED CRITICISM FROM BOTH THE LEFT AND CENTER WHICH WARN ABOUT POSSIBLE CONFLICTS OF INTEREST BY A POLITICIAN WHO OWNS NEARLY HALF THE TELEVISION BROADCASTING OUTLETS IN THE COUNTRY SEVERAL LEADING JOURNALISTS HAVE DEFECTED FROM HIS TV AND PUBLISHING HOLDINGS OVER THE PAST MONTH IN PROTEST OF HIS POLITICAL INVOLVEMENT A FININVEST SPOKESWOMAN SAID THE COMPANY WILL HOLD A BOARD MEETING SHORTLY TO ELECT A SUCCESSOR TO MR BERLUSCONI WHO FOUNDED THE COMPANY IN 1978 9401270130 940127 WHO'S NEWS SOUTHERN CO SOUTHERN CO ATLANTA TRAVIS J BOWDEN 55 YEARS OLD WAS ELECTED PRESIDENT OF GULF POWER CO A PENSACOLA FLABASED SUBSIDIARY OF THIS UTILITY HOLDING COMPANY MR BOWDEN EXECUTIVE VICE PRESIDENT OF ALABAMA POWER CO ANOTHER SOUTHERN CO SUBSIDIARY SUCCEEDS DOUGLAS L MCCRARY 64 MR MCCRARY WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GULF POWER UNTIL MAY 1 WHEN HE RETIRES AND MR BOWDEN ASSUMES THE ADDITIONAL POSITIONS 9401270129 940127 MARKET 2000 PLAN IS READY FOR UNVEILING DON'T EXPECT APPLAUSE FROM EXCHANGES BY ANITA RAGHAVAN AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHEN THE SECURITIES AND EXCHANGE COMMISSION UNVEILS ITS MUCHBALLYHOOED STUDY ON US SECURITIES MARKETS TODAY ARTHUR LEVITT ITS CHAIRMAN WON'T BE AROUND THAT SPEAKS VOLUMES MORE TO WALL STREET EXECUTIVES THAN THE MARKET 2000 STUDY ITSELF THEY SEE THE CHAIRMAN DISTANCING HIMSELF FROM A REPORT THAT FALLS FAR SHORT OF OFFERING THE WHOLESALE REGULATORY CHANGES THE EXCHANGES ARE DESPERATELY SEEKING INDEED SOME OF THE MEASURES ARE DOWNRIGHT LOATHSOME TO THE EXCHANGES FOR INSTANCE THE REPORT SUGGESTS THE AGENCY LOOSEN THE RULES GOVERNING THE ABILITY OF COMPANIES TO MOVE FROM THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE TO OTHER MARKETS CURRENTLY A NEW YORK STOCK EXCHANGELISTED COMPANY THAT WANTS TO CHANGE VENUE WOULD HAVE TO GET TWOTHIRDS OF ITS SHAREHOLDERS TO AGREE TO THE MOVE THE REPORT SUGGESTS THAT A COMPANY'S BOARD OF DIRECTORS BE ALLOWED TO MAKE THAT DECISION SUBJECT TO REVIEW BY THE COMPANY'S AUDIT COMMITTEE IT ALSO SUGGESTS THAT MEMBERS OF THE NEW YORK STOCK EXCHANGE BE FREE TO TRADE LISTED STOCKS AWAY FROM THE BIG BOARD AFTER HOURS UNLESS THE EXCHANGES OFFER AN AFTERHOURS SYSTEM CURRENTLY MEMBERS MUST TRADE THESE STOCKS IN FOREIGN MARKETS THE CHANGE WOULD IN EFFECT CIRCUMVENT RULE 390 WHICH GIVES ONLY SPECIALIST FIRMS THE RIGHT TO MAKE MARKETS IN STOCKS OVERALL THE MARKET 2000 STUDY PROPOSES THAT THE SEC CONTINUE A FLEXIBLE APPROACH TOWARD OFFEXCHANGE TRADING SYSTEMS BUT MAKE THEM SUBJECT TO DETAILED REPORTING AND RECORDKEEPING REQUIREMENTS THE NEW YORK STOCK EXCHANGE AND OTHERS HAD WANTED THE SEC TO GO MUCH FURTHER BY IMPOSING ON THE OFFEXCHANGE TRADING SYSTEMS THE FULL PANOPLY OF REGULATIONS GOVERNING THE EXCHANGES THEY ARE OBVIOUSLY STILL TRYING TO GET THE EXCHANGES TO COMPETE IN A TENNIS MATCH DRESSED FOR FOOTBALL COMPLAINS CAROLYN B AUSTIN PRESIDENT OF THE MIDWEST STOCK EXCHANGE SPECIALIST FIRM DEMPSEY & CO YOU STILL HAVE ALL THESE REGULATORY TRAPPINGS AROUND THE EXCHANGES AND YET THE OVERTHECOUNTER MARKETS ARE FAIRLY LIGHTFOOTED WHAT THE SEC STAFF IS SAYING IS THAT OVERALL THE MARKETS WORK PRETTY WELL AND SO THERE IS NO NEED FOR RADICAL CHANGE SAYS ONE PERSON WHO WAS BRIEFED ON THE REPORT YESTERDAY HOWEVER THEY RECOGNIZE THE NEED FOR SOME CHANGES TO ACCOMMODATE TECHNOLOGICAL DEVELOPMENTS AND CHANGES IN MARKET PRACTICES ADDS MS AUSTIN MY SENSE IS MARKET 2000 MAY BE A FIRST STEP BUT THEY'LL NEED A MARKET 2001 TO FIX ANYTHING AN SEC SPOKESWOMAN DENIED THAT MR LEVITT'S CONSPICUOUS ABSENCE FROM TODAY'S PLANNED PRESENTATION IS ANY ATTEMPT TO DISTANCE HIMSELF FROM THE REPORT MR LEVITT HAD A PREVIOUS ENGAGEMENT WHICH WE WANTED TO KEEP AND WE ALL DECIDED IT WAS IN THE BEST INTEREST OF ALL PARTIES TO RELEASE IT IN LATE JANUARY SAID THE SPOKESWOMAN NO ONE AT THE SEC WOULD COMMENT ON THE REPORT BEFORE ITS RELEASE COMMISSIONED TWO YEARS AGO BY FORMER SEC CHAIRMAN RICHARD BREEDEN MARKET 2000 IS THE SEC'S FIRST BROADREACHING SURVEY OF THE EQUITY MARKETS IN MORE THAN 20 YEARS FROM THE START THE STOCK EXCHANGES SAW THE STUDY AS A WAY TO REMEDY SOME OF THE COMPETITIVE DISADVANTAGES THEY HAVE SUFFERED IN RECENT YEARS AS SCANTILYREGULATED OFFEXCHANGE TRADING SYSTEMS HAVE PROLIFERATED THOSE OFFEXCHANGE SYSTEMS HAVE SUCKED AWAY MILLIONS OF DOLLARS OF STOCK ORDERS FROM THE WELLESTABLISHED HIGHLY REGULATED EXCHANGE FLOORS EVEN THOSE PROPOSALS THE EXCHANGES FAVOR AREN'T AS STRICT AS THEY WOULD LIKE THE REPORT REITERATES THE NEED FOR GREATER DISCLOSURE OF PAYMENT FOR ORDER FLOW A PRACTICE IN WHICH BROKERS RECEIVE INCENTIVES FROM MARKET MAKERS FOR BUY AND SELL ORDERS FOR STOCKS THE PRACTICE IS ALREADY THE SUBJECT OF A RULE PROPOSED BY THE SEC THE SAME PROPOSAL DEALS WITH SOCALLED SOFT DOLLAR PAYMENTS WHICH INCLUDE DISCOUNTS ON RESEARCH REPORTS AMONG OTHER THINGS THE EXCHANGES WANTED PAYMENT FOR ORDER FLOW BANNED ANOTHER RECOMMENDATION THAT MAY BE MOOT IS ONE THAT WOULD REQUIRE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TO PUBLICLY DISPLAY ORDERS ENTERED ON SELECTNET THE COMPUTERIZED TRADING SYSTEM THAT ALLOWS NASD MEMBERS TO NEGOTIATE AND EXECUTE TRANSACTIONS FOR NASDAQLISTED STOCKS EARLIER THIS WEEK THE NASD'S BOARD OF GOVERNORS VOTED TO GIVE NONMEMBERS ACCESS TO SELECTNET THROUGH MEMBER FIRMS THE NASD ACTION WILL HAVE TO BE APPROVED BY THE SEC AFTER STAFF REVIEW THEN THERE'S THE SUGGESTION THAT THE CURRENT SYSTEM OF PRICING STOCKS IN INCREMENTS OF ONEEIGHTH OF A DOLLAR OR 125 CENTS BE SCRAPPED IN FAVOR OF DECIMALIZATION THE REPORT RECOMMENDS THE ADOPTION OF A ONESIXTEENTH OF A DOLLAR INCREMENT AS A TRANSITIONAL STEP LEADING TO DECIMAL PRICING THAT IS INCREMENTS OF 10 CENTS AS WITH SIMILAR SWEEPING REPORTS MARKET 2000 WILL REFLECT THE STAFF'S FINDINGS AND RECOMMENDATIONS RATHER THAN THE COMMISSION'S THE COMMISSION DOESN'T ENDORSE STAFF REPORTS BUT IT AUTHORIZES THEIR PUBLICATION A SPOKESMAN SAID THE COMMISSIONERS TRY AS HARD AS POSSIBLE TO MAKE IT CLEAR THAT IT'S THE DIVISION THAT'S REPORTING IN THIS CASE THE MARKET REGULATION DIVISION HEADED BY BRANDON BECKER IS RELEASING THE REPORT WITHOUT FANFARE UNLIKE THE REPORT ON MUTUAL FUNDS RELEASED IN MAY 1992 AT A NEWS CONFERENCE LED BY THENCHAIRMAN MR BREEDEN STAFF RECOMMENDATIONS IN THESE REPORTS TYPICALLY CONTAIN A MIX OF SUGGESTIONS SOME OF WHICH REQUIRE RULEMAKING BY THE COMMISSION AND SOME OF WHICH REQUIRE LEGISLATION OTHER SUGGESTIONS ARE UP TO THE EXCHANGES AND NASDAQ TO FOLLOW IF COMMISSION RULEMAKING IS IN ORDER THE PROCESS IS THE SAME AS IF NO REPORT HAD BEEN ISSUED THE COMMISSION WILL VOTE TO PROPOSE A RULE COLLECT COMMENTS AND THEN VOTE ON A FINAL RULE THE PROCESS CAN TAKE MONTHS CAROLINE B AUSTIN IS PRESIDENT OF DEMPSEY & CO A SPECIALIST FIRM ON THE CHICAGO STOCK EXCHANGE AN ARTICLE YESTERDAY INCORRECTLY REFERRED TO THE CHICAGO STOCK EXCHANGE BY ITS FORMER NAME THE MIDWEST STOCK EXCHANGE 9401270128 940127 ARIZONA SHOWS SIGNS OF A MODEST BOOM ESPECIALLY IN HOMES BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL ARIZONA ECONOMISTS STILL SMARTING FROM MEMORIES OF THE STATE'S UNCHARACTERISTIC BUST IN THE LATE 1980S ARE BEGINNING TO TALK OF A NEW IF LIMITED ECONOMIC BOOM IF IT'S NOT A BOOM IT'S A MINIBOOM VENTURES MARSHALL J VEST OF THE UNIVERSITY OF ARIZONA IN TUCSON AFTER SEVERAL SLOWERGROWING YEARS EMPLOYMENT WILL RISE SHARPLY THIS YEAR AND PUT ARIZONA RIGHT UP THERE WITH THE FASTESTGROWING STATES IN THE NATION HE SAYS AND THIS YEAR WE WILL HAVE FOR THE FIRST TIME IN A DECADE BOTH THE CONSTRUCTION INDUSTRY AND THE MANUFACTURING INDUSTRY INCREASING AT THE SAME TIME WHILE AGREEING THAT THE HOUSING SECTOR IS PRETTY AMAZING TRACY L CLARK OF ARIZONA STATE UNIVERSITY IN THE PHOENIX SUBURB OF TEMPE ADDS CAUTIOUSLY IF I WAS GOING TO USE THE TERM BOOM' I'D PROBABLY RESTRICT MYSELF TO THE CONSTRUCTION INDUSTRY AND THE SINGLEFAMILY HOUSING MARKETS AFTER A STRING OF YEARTOYEAR DECLINES ARIZONA'S RESIDENTIAL BUILDING SURGED 36 IN 1992 AND 19 LAST YEAR TUCSON WHOSE POPULATION OF 720000 RANKS SECOND TO METROPOLITAN PHOENIX'S 23 MILLION IS GROWING ESPECIALLY FAST THE MISSILESYSTEMS DIVISION OF GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO IS HEATING UP THE TUCSON HOUSING MARKET BY RELOCATING THERE 4000 EMPLOYEES MOSTLY WHITECOLLAR FROM SOUTHERN CALIFORNIA PIMA COUNTY SUPERVISOR ED MOORE SAYS THE INFLUX OF HIGHERINCOME WORKERS HAS LED TO AN EXTREME SHORTAGE OF 300000PLUS HOUSES HE ESTIMATES THAT NOT MORE THAN 20 ARE AVAILABLE RIGHT NOW ANOTHER ELEMENT IN THE CONSTRUCTION BOOMLET IRONICALLY IS A LEGACY FROM THE SPECULATIVE BUILDING OF THE MID1980S DEVELOPERS WHO MIGHT HAVE HAD TROUBLE JUSTIFYING NEW HOUSING PROJECTS HAVE FOUND IT CHEAPER TO BUILD ON THE SITES ABANDONED A FEW YEARS AGO IN MANY PLACES PIPES WIRING AND OTHER INFRASTRUCTURE WERE IN PLACE WHEN THE PROJECTS WENT BUST THE UNEMPLOYMENT RATE WHICH AT 75 IN 1992 WAS A SHADE ABOVE THE NATION'S FELL TO AN AVERAGE OF 63 LAST YEAR AND IS HEADED TOWARD 56 THIS YEAR FIRST INTERSTATE BANK SAYS IT EXPECTS THE US RATE TO STAY AROUND 68 OF THE LABOR FORCE OTHER SIGNS OF STRENGTH IN ARIZONA INCLUDE A DROP IN OFFICE VACANCY RATES AND GAINS IN POPULATION PERSONAL INCOME AND RETAIL SALES THAT SLIGHTLY OUTPACE THE NATION'S MANY ECONOMISTS APPLAUD THESE RELATIVELY MODEST GAINS BRIAN CARY AN ECONOMIST WHO TRACKS SIX WESTERN STATES FOR FIRST INTERSTATE EXPLAINS THAT THE GROWTH RATES OF THE EARLY 1980S PROBABLY WEREN'T SUSTAINABLE AND HE SEES THE CURRENT ARIZONA ECONOMY ON FIRM GROUND MR CARY DISCERNS LITTLE OF THE FINANCIAL OVERHEATING THAT DEVASTATED THE STATE IN THE MID1980S ARIZONA'S CONSTRUCTION INDUSTRY IS GETTING A SHORTTERM BOOST FROM SHAKY SOUTHERN CALIFORNIA NONRESIDENTIAL BUILDERS ALREADY HAVE TAKEN JOBS AT EARTHQUAKEDAMAGE SITES IN LOS ANGELES THE QUAKE ALSO MAY BOLSTER ARIZONA'S TOURIST TRADE VACATIONERS SEEKING A WARMWEATHER DESTINATION SOMEWHERE OTHER THAN LOS ANGELES MAY GO TO ARIZONA MR CARY SAYS ARIZONA'S FORTUNES COULD GET A FURTHER LIFT FROM THE STATE GOVERNMENT WHICH IS RUNNING A BUDGET SURPLUS AND IS DISCUSSING A 100 MILLION CUT IN PERSONAL INCOME TAXES THIS YEAR ANOTHER PLUS COULD BE THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH SEEMS SURE TO HELP BORDER STATES THAT ALREADY HAVE STRONG TIES TO MEXICO EXPLAINING TUCSON'S RAPID GROWTH PROF VEST SAYS TUCSON STARTED THE CORRECTIVE PROCESS A YEAR BEFORE PHOENIX AND SOLVED THE OVERSUPPLY A YEAR SOONER AND TUCSON ONLY ABOUT 40 MILES NORTH OF THE MEXICAN BORDER WILL ESPECIALLY BENEFIT FROM NAFTA BUT ARIZONA STATE ECONOMISTS CONTEND THAT PHOENIX AND SURROUNDING MARICOPA COUNTY WILL REGAIN THE LEAD TRACY CLARK WHO IS ALSO ECONOMICS EDITOR OF THE AREA'S QUARTERLY BLUE CHIP ECONOMIC FORECAST BELIEVES THAT PHOENIX WILL SOON REFLECT THE NATIONAL ECONOMIC RECOVERY FASTER IN PART BECAUSE OF THE CITY'S BETTER TRANSPORTATION LINKS 9401270127 940127 MOTOROLA GETS CELLULAR ORDER ENGLEWOOD COLO THE CELLULAR ARM OF TELECOMMUNICATIONS COMPANY U S WEST INC SAID IT AGREED TO PURCHASE EQUIPMENT MADE BY MOTOROLA INC TO REPLACE AND UPGRADE ITS CELLULAR NETWORK IN ARIZONA TERMS WERE NOT DISCLOSED THE AGREEMENT LENDS MOMENTUM TO MOTOROLA'S APPROACH TO ALLDIGITAL CELLULAR NETWORKS CALLED CODE DIVISION MULTIPLE ACCESS U S WEST HAS ALREADY USED MOTOROLA CELLULAR EQUIPMENT IN REVAMPING CELLULAR SYSTEMS IN DENVER SEATTLE AND MINNEAPOLIS MOTOROLA IS BASED IN SCHAUMBURG ILL 9401270126 940127 MARKETSCAN PITCH PANACHE BUOY FANCY PRIVATE LABEL BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IN THE PRIVATELABEL BUSINESS PC DOESN'T MEAN POLITICALLY CORRECT THE INITIALS STAND FOR PRESIDENT'S CHOICE AN EXTENSIVE LINE OF UPSCALE FOODS THAT PROMOTERS SAY REPRESENTS THE FUTURE FOR SUCCESSFUL SUPERMARKETS PRESIDENT'S CHOICE AND ITS PRIMARY PITCHMAN DAVID A NICHOL HAVE ACHIEVED AN EXTRAORDINARY MARKETING FEAT A PRIVATE LABEL WITH CACHET PRIVATELABEL PRODUCTS WHOSE QUALITY EQUALS OR EXCEEDS NATIONALBRAND PRODUCTS BUT ARE LESS EXPENSIVE HAVE LONG BEEN A STAPLE OF EUROPEAN GROCERS BUT IN THE US HOUSE BRANDS TRADITIONALLY HAVE BEEN VIEWED AS POOR RELATIONS INCREASINGLY HOWEVER SUPERMARKETS ARE USING PRIVATELABEL PRODUCTS AND UPSCALE LINES OF THEM AS A COMPETITIVE WEAPON A&P HAS A PREMIUM HOUSE BRAND CALLED MASTER CHOICE SAFEWAY HAS SELECT VONS IN CALIFORNIA FEATURES ROYAL REQUEST WHILE RIVAL RALPH'S GROCERY HAS ITS PRIVATE SELECTION LABEL EIGHT BIG US CHAINS IN MAJOR CITIES INCLUDING NEW YORK CHICAGO AND LOS ANGELES CARRY PRESIDENT'S CHOICE WHICH WAS CREATED 10 YEARS AGO BY LOBLAW COS LTD OF TORONTO TODAY PRESIDENT'S CHOICE IS THE LEADING GROCERY HOUSE BRAND IN CANADA IN THE US IT IS FEATURED IN AMERICAN STORES CO'S JEWEL AND STAR UNITS AND D'AGOSTINO SUPERMARKETS INC FROM PC'S INCEPTION MR NICHOL HAS BEEN THE GREGARIOUS GOURMAND BEHIND THE BRAND'S MARKETING SPENDING HOURS IN LOBLAW'S TEST KITCHENS AND HIS OWN DEVELOPING AND TASTING PRODUCTS HE HAS APPEARED IN 30MINUTE INFOMERCIALS ON CANADIAN TELEVISION AND IN A COLORFUL FREE PULP MAGAZINE HE EDITS SOMETIMES HOLDING ONE OF HIS FRENCH BULLDOGS AND A GLASS OF WINE TO CELEBRATE PC'S RECENT 10TH ANNIVERSARY LOBLAW PUBLISHED THE DAVE NICHOL COOKBOOK IN WHICH EACH RECIPE CALLS FOR AT LEAST ONE AND OFTEN SEVERAL PRESIDENT'S CHOICE PRODUCTS A ONETIME BALLBEARINGS SALESMAN WHO EARNED A LAW DEGREE AT HARVARD AND THEN CONSULTED FOR MCKINSEY & CO MR NICHOL CAME TO LOBLAW IN THE EARLY 1980S TO HELP THE THENTROUBLED CHAIN PART OF HIS SOLUTION PRESIDENT'S CHOICE RATHER THAN PUT COKE OR TIDE ON SALE ONE WEEK TO DRAW CUSTOMERS FEATURE YOUR OWN UPSCALE PRODUCTS YEARROUND MR NICHOL URGED MUCH OF PRESIDENT'S CHOICE'S SUCCESS IS FASHIONED FROM INYOURFACE HYPE PC COOKIES AREN'T SIMPLY COOKIES THEY'RE DECADENT FROZEN PIZZA BECOMES THE ULTIMATE AND PC PEANUT BUTTER IS TOO GOOD TO BE TRUE A WORLD TRAVELER MR NICHOL PLASTERS EXOTIC LABELS ON PRESIDENT'S CHOICE SAUCES AS IF THEY WERE STEAMER TRUNKS AS IN MEMORIES OF ANCIENT DAMASCUS TANGY POMEGRANATE GLAZE FOR YEARS THE RULE OF THUMB WAS DON'T MAKE THE PRODUCT DIFFERENT FROM THE BRAND LEADER SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION BUT NOW RETAILER BRANDS ARE SOMETIMES BETTER THAN THE NATIONAL ONES AND CHEAPER US SALES DATA COMPILED FOR THE WALL STREET JOURNAL BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE REVEAL THAT THE UPSCALE PRIVATELABEL IDEA WORKS VERY WELL IN SOME CATEGORIES IN COOKIES PRESIDENT'S CHOICE RACKED UP IMPRESSIVE US SALES OF 214 MILLION FOR THE 52 WEEKS ENDED SEPT 12 A 140 INCREASE FROM A YEAR EARLIER FOR THE PERIOD JUICE SALES TOTALED 54 MILLION AND CAT FOOD 5 MILLION ALTHOUGH OTHER CATEGORIES HAD MORE MODEST SALES READYTOEAT PC CEREAL 35 MILLION POPCORN 13 MILLION AND SPAGHETTI SAUCE 12 MILLION ALL HAD AT LEAST DOUBLEDIGIT INCREASES PC HAS ABOUT 1000 PRODUCTS FROM BEER TO FRESH MEATS BUT DESPITE THE HUGE SHADOW IT HAS CAST OVER THE GROCERY INDUSTRY PRESIDENT'S CHOICE IS STILL A TINY CONTENDER COMPARED WITH SOME NATIONAL BRANDS IN ONE MIDWESTERN CHAIN PC'S DECADENT CHOCOLATE CHIP COOKIE ONLY HAD A 11 DOLLAR SHARE OF ALL PACKAGED COOKIE SALES COMPARED WITH 77 FOR NABISCO'S OREOS AND 59 FOR NABISCO'S CHIPS AHOY ACCORDING TO INFORMATION RESOURCES PC GOURMET POPCORN CAME IN THIRD BEHIND CONAGRA'S ORVILLE REDENBACHER AND GENERAL MILLS'S POP SECRET WITH A 164 DOLLAR SHARE FOR THE 52 WEEKS BUT PC'S SHARE IN CANNED CAT FOOD SLIPPED 33 FROM A YEAR EARLIER ITS POSITION IN BOTTLE JUICES FELL 139 IT HAD A VERY SMALL PIECE OF THE CHAIN'S CEREAL BUSINESS AND IT WAS BARELY REGISTERING IN SPAGHETTI SAUCES LAST MONTH MR NICHOL 53 YEARS OLD RESIGNED FROM LOBLAW HE WILL REMAIN A CONSULTANT BUT IS ADVISING OTHER MANUFACTURERS AND RETAILERS INCLUDING WALMART WHICH IS USING PC AS A MODEL FOR ITS RECENT SAM'S AMERICAN CHOICE BRAND BUT NOT ALL RETAILERS BUY INTO THE IDEA OF AN UPSCALE HOUSE BRAND AT INDEPENDENT GROCERS ALLIANCE WHICH SUPPLIES 4000 STORES IN SIX COUNTRIES IT IS SEEN AS CONFUSING THE CONSUMER AN IGA SPOKESMAN SAYS THE NATION'S BIGGEST SUPERMARKET CHAIN CINCINNATIBASED KROGER CO EXPERIMENTED WITH A PREMIUM PRIVATE LABEL BUT DROPPED IT THE ADVICE WE GOT WAS IF YOU WANT TO HAVE A STRONG PRIVATE LABEL PUT YOUR NAME ON IT HAVE CONSISTENT GOOD QUALITY AND TRY TO MATCH THE NATIONAL BRANDS THAT'S WHAT WE'VE DONE A KROGER SPOKESMAN SAYS ADDING THAT ITS PRIVATE LABEL REPRESENTS 18 OF THE CHAIN'S SALES EVEN AMERICAN STORES PC'S BIGGEST US DISTRIBUTOR USES THE BRAND SELECTIVELY WHILE ITS CHICAGOBASED JEWEL CHAIN FEATURES 200 TO 250 ITEMS AMERICAN'S LOWPRICE LUCKY STORES ON THE WEST COAST CARRY ONLY A FEW ITEMS AT AMERICAN'S UPSCALE STAR STORES PC IS POPULAR IT'S CLEARLY A POINT OF DIFFERENTIATION SAYS EDWARD COOK DIRECTOR OF CONTROLLED BRANDS AT HARRIS TEETER CO A CHARLOTTE NC CHAIN THAT CARRIES PRESIDENT'S CHOICE THE CHAIN HOPES THE ADDITION OF FROZEN ENTREES PASTAS AND MARINATED MEATS WILL HELP DOUBLE PC SALES THIS YEAR BUT MR COOK SAYS HARRIS TEETER DROPPED PC'S SPLENDIDO PIZZA CRUST WHEN IT DIDN'T SELL UP TO EXPECTATIONS PC USUALLY IS PRICED BELOW THE NATIONAL MARKET LEADER AT HARRIS TEETER FOR EXAMPLE THREEOUNCE CANS OF PRESIDENT'S CHOICE GOURMET CAT FOOD COST ABOUT 25 CENTS WHILE THE CATEGORY'S LEADING BRAND NESTLE'S FANCY FEAST COSTS ABOUT 36 CENTS SEVERAL USBASED GROCERY SUPPLIERS ALSO MAKE UPSCALE PRIVATELABEL PRODUCTS THAT THEY SAY RIVAL PRESIDENT'S CHOICE TOPCO ASSOCIATES INC SKOKIE ILL DEVELOPED A WORLD CLASSICS LINE NOW STOCKED BY 28 SUPERMARKET CHAINS SHURFINECENTRAL CORP A NORTHLAKE ILL COOPERATIVE THAT SERVES ABOUT 20000 GROCERS AND CONVENIENCE STORES NATIONWIDE DEVELOPED AN UPSCALE LINE USING WINNING RECIPES FROM STATE AND COUNTY FAIRS ITS ADULTS ONLY MACARONI AND CHEESE FEATURES FIVE RIBBONWINNING CHEESES THEY ALWAYS SAY THEY'RE THE BEST SHURFINE'S ART BOUSEL SAYS OF PRESIDENT'S CHOICE BUT WE PRESENT PROOF THAT OURS IS THE BEST MR BOUSEL SAYS NOTING THAT PICTURES OF RIBBONWINNERS APPEAR ON THE PACKAGES 9401270125 940127 WHO'S NEWS MADISON GROUP'S CRAIG IS QUITTING AS CEO DIRECTOR BY MICHAEL SANTOLI AND EMORY THOMAS JR STAFF REPORTERS OF THE WALL STREET JOURNAL MADISON GROUP ASSOCIATES INC WHICH HAS FACED QUESTIONS ABOUT THE PRECISE VALUE OF ITS GROWING ASSETS SAID WILLIAM T CRAIG ITS CHIEF EXECUTIVE OFFICER AND A DIRECTOR IS RESIGNING FROM BOTH POSTS MEANWHILE THE SECURITIES AND EXCHANGE COMMISSION HAS CONTACTED AT LEAST THREE PEOPLE REGARDING THEIR DEALINGS WITH MADISON GROUP ONE OF THOSE INDIVIDUALS A FORMER EMPLOYEE SAID THE SEC HAD ASKED ABOUT HOW THE COMPANY VALUED ITS ASSETS THE PERSON ADDED THAT THE SEC ALSO APPEARED INTERESTED IN THE TRADING OF MADISON GROUP STOCK NEITHER THE COMPANY NOR THE SEC WOULD COMMENT ON ANY POSSIBLE INQUIRY IN NASDAQ STOCK MARKET TRADING YESTERDAY MADISON GROUP CLOSED AT 1 OFF 3125 CENTS OR 3 ON VOLUME OF 75900 SHARES THE MOVES FOLLOW A TUMULTUOUS YEAR FOR MADISON GROUP BASED IN FORT LAUDERDALE FLA FORMERLY A REALESTATE CONCERN KNOWN AS CANAVERAL INTERNATIONAL MADISON GROUP MADE SEVERAL MEDIA ACQUISITIONS UNDER THE DIRECTION OF MR CRAIG ACCORDING TO KENNETH L LUCAS PRESIDENT OF THE COMPANY AND THE MAN NAMED YESTERDAY TO SUCCEED MR CRAIG AS CHIEF EXECUTIVE AS A RESULT THE COMPANY'S REPORTED ASSETS SKYROCKETED AMONG OTHER PROPERTIES MADISON GROUP NOW OWNS FOUR VIDEO LIBRARIES AND A RADIO STATION IN AMARILLO TEXAS ACCORDING TO A RECENT SECURITIES FILING THE COMPANY'S REPORTED ASSETS FOR THE PAST TWO FISCAL YEARS 364 MILLION IN FISCAL 1993 344 MILLION IN FISCAL 1992 JUMPED SUBSTANTIALLY FROM THE 63 MILLION REPORTED IN 1991 MOST OF THE GAIN WAS ATTRIBUTED TO THE MEDIA PROPERTIES THOSE MEDIA ASSET VALUATIONS HOWEVER WERE CALLED INTO QUESTION IN JANUARY 1993 BY MADISON GROUP'S FORMER ACCOUNTANT VAUGHN M SARKISSIAN WHO RECOMMENDED THAT AN INDEPENDENT SPECIALIST BE HIRED TO EVALUATE THE VIDEO LIBRARIES ACCORDING TO THE SECURITIES FILING ALTHOUGH THE ACCOUNTANT LATER RESIGNED MADISON GROUP'S BOARD RETAINED A SPECIALIST TO EVALUATE THE LIBRARIES THE FILING STATES YESTERDAY MR LUCAS DECLINED TO ELABORATE ON THE STATUS OF THE VIDEOLIBRARY VALUATIONS MR CRAIG WHO THE COMPANY SAID IS LEAVING TO CONCENTRATE ON OTHER BUSINESS VENTURES COULDN'T BE REACHED FOR COMMENT MR LUCAS SAID THE COMPANY IS IN THE MIDST OF A RESTRUCTURING IN WHICH THE VIDEO LIBRARY CONSISTING PRIMARILY OF COUNTRY AND GOSPELMUSIC PERFORMANCES IS BEING CONVERTED INTO MARKETABLE PACKAGES 9401270124 940127 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO DONALD L MCWHORTER 58 YEARS OLD PRESIDENT OF THIS BANK HOLDING COMPANY WAS NAMED TO THE ADDITIONAL AND NEWLY CREATED POST OF CHIEF OPERATING OFFICER MR MCWHORTER'S RESPONSIBILITIES INCLUDE THE MANAGEMENT OF ALL BANK ONE BANKS AND STATE HOLDING COMPANIES AS WELL AS ITS CREDIT CARD LEASING AND FINANCE COMPANY OPERATIONS HE ALSO WILL BE RESPONSIBLE FOR BANC ONE SERVICES CORP THE CORPORATION'S DATA PROCESSING AND TECHNOLOGY UNIT 9401270123 940127 BUSINESS BRIEF US SHOE TO ELIMINATE 700 POSITIONS RELATED CHARGE EXPECTED TO CUT PROFIT US SHOE CORP GRAPPLING WITH INEFFICIENCIES IN ITS ORGANIZATION SAID IT IS CUTTING 700 JOBS OR 18 OF ITS WORK FORCE AND TAKING A RELATED CHARGE THAT WILL REDUCE FISCAL FOURTHQUARTER EARNINGS THE MOVE IS US SHOE'S BIGGEST SINGLE JOB CUT SINCE MAJOR MANAGEMENT CHANGES BEGAN EARLY LAST YEAR IN JUNE THE CINCINNATIBASED APPAREL SHOE AND OPTICAL RETAILER ELIMINATED 100 JOBS PRIMARILY IN ITS APPAREL UNIT AND NOW EMPLOYS 40000 THE NEW CUTS ARE COMPANYWIDE RETAIL ANALYSTS AND CONSULTANTS SAID THE PLAN WHICH INCLUDES CONSOLIDATING MANAGEMENT LAYERS AND CENTRALIZING OPERATIONS IS LONG OVERDUE SEVERAL QUESTIONED WHETHER IT GOES FAR ENOUGH TO REVIVE A COMPANY WHOSE EARNINGS HAVE ERODED AS ITS WOMEN'S APPAREL AND FOOTWEAR STORES HAVE FALLEN BEHIND THE TIMES IT REALLY DOESN'T ADDRESS THE CORE PROBLEM WHICH IS NOT ENOUGH CUSTOMERS AND NOT ENOUGH MERCHANDISE BEING SOLD SAID KURT BARNARD PRESIDENT OF BARNARD'S RETAIL CONSULTING GROUP NEW YORK THERE'S A LACK OF EXCITEMENT IN TERMS OF FASHIONS AND AN INABILITY TO SWEEP CUSTOMERS OFF THEIR FEET AND INTO THEIR STORES ROBERT M BURTON A SPOKESMAN FOR US SHOE SAID THE COMPANY ACKNOWLEDGES THESE CONCERNS AND HAS ADDRESSED THE PRODUCT ISSUE AGGRESSIVELY THE PAST YEAR BY HIRING PEOPLE WITH PROVEN BACKGROUNDS IN THESE AREAS ANALYSTS EXPECT US SHOE TO POST A PROFIT ALBEIT A SMALL ONE IN THE QUARTER ENDING JAN 29 IN THE YEARAGO FOURTH QUARTER THE COMPANY POSTED NET INCOME OF 832000 OR TWO CENTS A SHARE REFLECTING LOSSES IN ITS FOOTWEAR UNIT SALES WERE 6882 MILLION A SPOKESMAN FOR US SHOE SAID THE REORGANIZATION IS EXPECTED TO SAVE MORE THAN 25 MILLION IN THE NEXT FISCAL YEAR AND MORE THAN 25 MILLION THE FOLLOWING YEAR THE COMPANY IS OVERHAULING ITS RETAIL FOOTWEAR BUSINESS WHICH HAD THREE AUTONOMOUS UNITS BANISTER CINCINNATI SHOE AND EASY SPIRIT AND NOW WILL HAVE TWO A COMBINED BANISTER CINCINNATI SHOE UNIT AND EASY SPIRIT THE COMPANY ALSO HAS ELIMINATED THE JOBS OF THE THREE TOP BANISTER EXECUTIVES INCLUDING THE UNIT'S PRESIDENT TO CREATE ADDITIONAL EFFICIENCIES IN WOMEN'S APPAREL THE COMPANY IS CHANGING THE WAY IT MANAGES MALL STORES DESIGNATING A SINGLE MANAGER FOR ALL STORES WITHIN A GIVEN MALL INSTEAD OF HAVING MANAGERS FOR EACH STORE MOREOVER DISTRICT AND REGIONAL MANAGERS WILL COVER ALL STORES SUCH AS CASUAL CORNER PETITE SOPHISTICATE AUGUST MAX WOMAN AND CAPEZIO WITHIN A GEOGRAPHIC REGION UNDER THE CURRENT SYSTEM ONE MANAGER MIGHT HANDLE CASUAL CORNER FOR A GIVEN REGION AND ANOTHER WOULD OVERSEE THE REGION'S PETITE SOPHISTICATES CONSULTANTS NOTED THAT SPECIALTY RETAILERS LIKE US SHOE AND LIMITED INC ARE STRUGGLING WITH DECLINING MALL TRAFFIC AND THE MOUNTING STRENGTH OF DISCOUNT AND DEPARTMENT STORES IN APPAREL AND FOOTWEAR THIS IS A VERY FIRST STEP AND IT'S VERY MUCH BELATED FOR A COMPANY LIKE US SHOE SAID GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES CHICAGO IT'S A SURVIVAL MOVE BECAUSE IF THEY DON'T TAKE THE COST CUT THEY'RE GOING TO BE PRICED OUT OF THE BUSINESS MR BURTON THE US SHOE SPOKESMAN SAID THESE PRESSURES REQUIRE COMPANIES LIKE OURS TO BE MORE SPECIALIZED AND NICHEDRIVEN WE NEED OUR OWN PRIVATELABEL BRAND THAT WILL BE RECOGNIZED BY THE CUSTOMER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING US SHOE SHARES FELL 25 CENTS TO 13875 9401270122 940127 LEISURE & ARTS A MANIACAL GARDENER'S GUIDE TO CATALOGORRHEA BY PATTI HAGAN LIKE MOST MANIACAL GARDENERS I SLOG THROUGH THE WINTER KNEEDEEP IN A GARDEN CATALOG BOG I DID NOT HAVE TO SEND FOR DOZENS OF THE 1000PLUS CATALOGS LISTED IN GARDENING BY MAIL HOUGHTON MIFFLIN FOURTH EDITION 400 PAGES 1895 BARBARA BARTON'S LATEST LAST WORD ON GARDEN SOURCERY BUT I DID AND NOW I FEEL OBLIGED TO DO MY BIT FOR THE GROSS NATIONAL TILTH AND BUY MORE PLANTS YEARS OF OVERINDULGENCE IN GARDEN CATALOGS QUALIFY ME TO HELP YOU MASTER GARDEN CATALOGORRHEA IN CATALOG CREATIVE 101 A CATALOGWRITING TUTORIAL OFFERED TO MEMBERS OF THE MAILORDER ASSOCIATION OF NURSERYMEN MAN SEVERAL YEARS BACK PLANT SELLERS WERE ENCOURAGED ADJECTIVALLY TO REALLY LET GO AND GET WILDLY ENTHUSIASTIC EVEN GO WAY OVERBOARD YOU CAN ALWAYS TONE DOWN EXCESSIVE COPY LATER HAPPILY FOR THE AMUSEMENT OF READERS THE EXCESSIVE COPY IN MANY GLOGS BOLD INYOURTYPEFACE CLAIMS IN GIGANTIC EMPHATIC LEAPING LETTERS NEVER GETS TONED DOWN WILL IMPERIAL TREE PEONIES REALLY THROW BLOOMS AS BIG AS A CHILD'S HEAD AND LIVE FOR A CENTURY OR EVEN MORE OWEN NURSERY WHAT ABOUT AMAZING ROOFHIGH CLIMBING TOMATOES' HYPE HYPE HOORAY A SINGLE SLICE COVERS A SLICE OF BREAD A SINGLE PLANT CLIMBS AS TALL AS A HOUSE GARDENERS' CHOICE AND WHAT OF THE BLUE ROSE FULLYDOUBLE ROSETTE FLOWERS IN A SHADE OF DEEP OCEAN BLUE TRUMPETED AS NEW BY BURPEE DON'T EXPECT HUNDREDS OF THORNLESS STEMS FROM A DOZEN OF OUR VIGOROUS BLUE ROSES' BECAUSE BURPEE'S BLUE ROSES ARE NOT ROSES AND NOT BLUE GLOGS THAT PUSH THE GUINNESS BOOK OF WORLD RECORDS GIANTSUPERCOLOSSAL COMPETITIVE SCHOOL OF PLANT & SEED MERCHANDISING MAKE FOR ENTERTAINING READING NOT GARDENING CHALLENGE THE WORLD RECORD OF A 6 1/4 LB TOMATO GC DO YOU A THINOBSESSED AMERICAN GARDENER REALLY WANT TO GROW A FATSO TOMATO WITH AN 18INCH WAIST FORGET GARDENING AS RELAXATION WHEN YOU GENTLE GARDENER ARE EGGED ON TO CHALLENGE THE WORLD RECORD OF A 600 POUND PUMPKIN BY PURCHASING SEEDS WITH THE GENETIC ABILITY TO SET WORLD RECORDS GC BEFORE TILTING YOUR TROWEL TOWARD THE VEGETABLE OLYMPICS PAUSE TO PONDER HOW MANY PECKS OF PUDGY PUMPKINS YOUR PATCH CAN POSSIBLY PUT UP WITH THE PLANT SO DESCRIBED IF YOU ORDER IT WILL IN NO TIME QUITE LIKELY OBLITERATE ALL OTHER VEGETATION IN YOUR PERSONAL PARADISE EXERCISE EXTREME CAUTION IF TEMPTED FOR EXAMPLE BY EASY TO GROW FAST GROWING WILLOWS OWEN THEY WILL SPEEDILY ENGULF YOUR YARD IN MESSY SHADE WHILE SOUNDLESSLY SUCKING UP ALL WATER ON THE PREMISES EASY SLOWGROWING PLANTS ALMOST NEVER GET TOUTED EXAMINE YOUR CONSCIENCE WHEN OWEN DECLARES MASTER GARDENERS HAVE BEEN KNOWN TO PULL THE FEMALE PLANTS FROM THEIR ASPARAGUS PATCH SO AS TO FAVOR THE BIGGER MORE SUCCULENT MALE PLANTS DARE YOU DO THE BOTANICALLY INCORRECT AND ORDER ALL MACHO JERSEY GIANT ASPARAGUS A VARIETY THAT GROWS ONLY MALE PLANTS WILL VEGGIEFEMINISTS INSIST ON LEVELING THE PLANTING FIELD BY CHOOSING TO GROW THE ALLFEMALE GOLDEN ZUCCHINI THAT DOUBLES YIELDS FULLY COGNIZANT THAT ALL FEMALE ZUCCHINI MEANS MORE FRUIT GC MORE ZUCCHINI BY THE IDES OF AUGUST ALL ZUCCHINIGLUTTED GARDENERS ARE CURSING THE SEED TRADE FOR A NEW DEVELOPMENT THAT IS TAKING THE ZUCCHINI IN THE WRONG DIRECTION PRAY FOR THE MUCH LESS FRUITFUL Z GARDENERS WHO WOULD CULTIVATE ECOLOGICALLY NONDESTRUCTIVE PLANTBUYING HABITS WILL USE THIS INVALUABLE BOOK AS A CATALOG CROSSCHECK ON THE PROVENANCE OF BULBS TERRESTRIAL ORCHIDS INSECTIVOROUS PLANTS NORTH AMERICAN WILDFLOWERS IN THE GARDEN TRADE TO BUY OR NOT TO BUY MUST TURN ON WHENCE ULTIMATELY THE PLANTS CAME FROM THE NURSERY PROPAGATION BENCH OR FROM THE WILD BY REFUSING TO BUY SPECIES WHOSE STATUS IS UNCLEAR MS MARSHALL WRITES GARDENERS CAN PROMOTE PROPAGATION AS WELL AS APPROPRIATE HARVESTING METHODS DON'T BE MISLED BY SUCH STANDARD CATALOG BOILERPLATE AS GROWN IN COMMERCIAL NURSERIES FIELD GROWN OR NURSERY GROWN TO DECODE FOR EVERY NURSERYGROWN UNDERSTAND NURSERYGROWNON THEN SUBSTITUTE NURSERYLAUNDERED THIS DECEPTIVE LANGUAGE IS NOT ONLY SANCTIONED BY THE FEDERAL TRADE COMMISSION BUT WAS ACTUALLY COOKED UP FOR ITS 1979 GUIDES FOR THE NURSERY INDUSTRY VIZ IT IS AN UNFAIR TRADE PRACTICE TO SELL OFFER FOR SALE OR DISTRIBUTE INDUSTRY PRODUCTS COLLECTED FROM THE WILD STATE WITHOUT DISCLOSING THAT THEY WERE COLLECTED FROM THE WILD STATE PROVIDED HOWEVER THAT IF COLLECTED PLANTS ARE GROWN IN THE NURSERY ROW FOR AT LEAST ONE GROWING SEASON BEFORE BEING MARKETED SUCH DISCLOSURE IS NOT REQUIRED SO MUCH FOR TRUTHINMARKETING ETHICAL GLOGS TAKE THIS INTO ACCOUNT AND GIVE CUSTOMERS PRECISE DESCRIPTIONS OF PROPAGATION METHODS MARSHALL OBVIOUSLY THE MORAL HORTPERSON SHOULD MAKE EVERY EFFORT TO DO BUSINESS WITH CATALOGS THAT GUARANTEE ALL OUR BULBS ARE GROWN FROM SEED OR TISSUE CULTURE OR HAVE BEEN VEGETATIVELY PROPAGATED ROBINETT BULB FARM OR EXPLAIN NONE OF THE PLANTS WE SELL HAVE BEEN COLLECTED FROM THE WILD YOU WILL NOT FIND THOSE VARIETIES SUCH AS TRILLIUMS AND LADY SLIPPER ORCHIDS THAT ARE VIRTUALLY ALWAYS COLLECTED ALL OF THE WILDFLOWERS AND HARDY FERNS LISTED IN OUR CATALOG ARE NURSERY PROPAGATED THE CROWNSVILLE NURSERY TO CATALOGS OFFERING RARE AND UNUSUAL SPRING FLOWERING BULBS JACQUES AMAND OR THE BEAUTIFUL AND THE RARE GREENLADY GARDENS/THE AJ SKITTONE COLLECTION AND NO INFO ON ULTIMATE SOURCES JUST SAY NO DISTINGUISH BETWEEN MASSMARKET COMMODITIES MERCHANDISERS OF PLANT PRODUCT AND PLANTSPEOPLE WHO PROPAGATE AND GROW THE PLANTS THEY SELL DO NOT LOSE YOUR SELFCONTROL WHEN COZIED UP TO BY SEEDS SUPPLIERS TO MONET AND CHARLES DARWIN THOMPSON & MORGAN KEEP YOUR COOL AROUND THE CATALOG THAT TRIES TO TURN HORTICULTURE INTO FAITH IN GOD FELLOW MAN AND IN THE SPIRITUAL VALUE OF GARDENING AND INCLUDES A MODIFIED LORD'S PRAYER ENDING AMEN THE PARK CREED OF PARK SEED EXCEPT FOR THE OCCASIONAL STATUE OF ST FRANCIS OR MODEST ACTS OF PIETY TOWARD ST GERTRUDE JEKYLL ST LIBERTY HYDE BAILEY OR ST LUTHER BURBANK PRACTICING PLANTSPERSONS REMAIN CAPABLE OF DISTINGUISHING THEIR QUASIRELIGIOUS AGONY IN THE GARDEN FROM THE REAL THING DEVOUT GLOG EVANGELISTS DO NOT CONFUSE THEMSELVES WITH MATTHEW MARK LUKE OR JOHN 9401270121 940127 WORLD MARKETS FOREIGN BUYING PROPELS TOKYO STOCKS UP 26 DESPITE STALEMATE ON JAPANESE POLITICAL REFORMS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOREIGN BUYING PROPELLED JAPANESE STOCKS HIGHER WEDNESDAY DESPITE A CONTINUED POLITICAL STALEMATE THE NIKKEI 225STOCK INDEX JUMPED 48985 POINTS OR 26 TO 1913821 IN TRADING THURSDAY IN TOKYO THE NIKKEI EASED 3960 POINTS TO CLOSE THE MORNING SESSION AT 1909861 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 360 MILLION SHARES UP FROM 2818 MILLION SHARES A DAY EARLIER GAINERS SWAMPED DECLINERS 968114 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES ADVANCED 3094 OR 2 TO 155032 FOREIGNERS HAVE BEEN DEDICATED BUYERS IN TOKYO THIS MONTH LIFTING THE NIKKEI 99 FOR THE YEAR THESE BUYERS WERE EVEN IN THE MARKET DURING A JAPANESEDOMINATED SELLOFF MONDAY THAT SET THE NIKKEI BACK 49 MANY JAPANESE INVESTORS WERE WORRIED THAT THE PARLIAMENTARY DEFEAT OF A POLITICAL REFORM PROGRAM WHICH OCCURRED AFTER TRADING CLOSED LAST FRIDAY MAY SIGNAL WEEKS OF POLITICAL TURMOIL THE MARKET IS ALL UP TO THE FOREIGNERS NOW HIROYUKI FUKUSHIMA A TRADER AT NIKKO SECURITIES CO SAID ADDING THAT THE FOREIGN BULLISHNESS HAS SURPRISED US EFFORTS WEDNESDAY FOR A COMPROMISE WITH THE OPPOSITION LIBERAL DEMOCRATIC PARTY PRODUCED NOTHING BUT MANY OVERSEAS INVESTORS SEEMED TO BELIEVE THAT NO MATTER WHICH POLITICIAN EVENTUALLY TRIUMPHS JAPAN STILL WILL HAVE GENERALLY UNASSUMING AND CONSERVATIVE LEADERS ABETTED BY THE SAME BUREAUCRATS WHO HAVE CRAFTED JAPANESE POLICY FOR DECADES IF THEY THINK IT'S TIME TO BUY MR FUKUSHIMA SAID IT DOESN'T MATTER WHAT HAPPENS IN JAPANESE POLITICS FOREIGN INVESTORS APPARENTLY BELIEVE THAT THE TOKYO MARKET BATTERED BY FOUR BEARISH YEARS IS OVERDUE FOR A RISE BUT THEY ALSO MAY BE COUNTING ON A COUPLE OF BENEFITS THAT MOST JAPANESE WON'T SEE CURRENCY IS ONE FOREIGN INVESTORS TEND TO OWN A LOT OF JAPANESE ELECTRONICS AND AUTO EXPORTERS IF THE YEN WEAKENS THOSE COMPANIES WILL DO RELATIVELY WELL AS THEIR PRODUCTS BECOME LESS EXPENSIVE IN OVERSEAS MARKETS IF THE YEN STRENGTHENS THOSE EXPORTERS MAY SUFFER BUT INVESTORS GET CURRENCY GAINS MANY US FUND MANAGERS HAD A MEDIOCRE 1993 IN JAPANESE STOCKS BUT STILL GAINED 11 ON THE STRONGER YEN THE GOVERNMENT MAY BE ANOTHER BENEFIT GOVERNMENT FUNDS HAVE PERIODICALLY PROPPED UP THE JAPANESE MARKET FOR MORE THAN A YEAR AND IN APRIL NEW MONEY EXCEEDING 2 TRILLION YEN 18 BILLION IS TO BE RELEASED FOR STOCK PURCHASES THAT ISN'T ENOUGH TO BAIL OUT LARGE JAPANESE SHAREHOLDERS BUT NIMBLE FOREIGNERS WITH LESS TOTAL CASH IN THE MARKET COULD EASILY SELL THEIR SHARES TO THE GOVERNMENT IF THEY TURNED NEGATIVE ON JAPAN ON FUNDAMENTALS SEVERAL LOCAL ANALYSTS BELIEVE IT IS TOO EARLY TO BUY JAPANESE STOCKS I DON'T SEE THE BUSINESS PERFORMANCE IMPROVING THIS YEAR SAID KOICHIRO BEPPU SENIOR MARKET ANALYST AT DEUTSCHE BANK CAPITAL MARKETS ASIA LTD YOU HAVE TO ASK YOURSELF WHY THERE ARE ALMOST NO JAPANESE INVESTORS FOLLOWING THE FOREIGNERS INTO THE MARKET SAID JOHN BALDWIN RESEARCH DIRECTOR AT JARDINE FLEMING SECURITIES LTD HE SAID THE REASON IS THAT JAPANESE COMPANIES KNOW THEIR ECONOMIC WOES WILL FORCE THEM TO SELL MORE STOCK I ESTIMATE 40 TRILLION YEN IN STOCK THAT HAS TO BE TAKEN OFF BALANCE SHEETS OVERSEAS INVESTORS WHO AREN'T BUYING THOSE ARGUMENTS AND ARE BUYING STOCKS SAID HUGE GOVERNMENT SPENDING LATER THIS YEAR WILL KICKSTART THE JAPANESE ECONOMY INDEED ONE LEGISLATOR INVOLVED IN FORMING THE COALITION'S ECONOMIC POLICIES SAID THE GOVERNMENT HOPES TO UNVEIL NEXT WEEK LONGAWAITED MEASURES TO REVIVE JAPAN'S ECONOMY NO MATTER WHETHER THE REFORM BILL IS PASSED THE PACKAGE PROBABLY WILL TOTAL 13 TRILLION YEN HE SAID AND INCLUDE BOTH PUBLICWORKS SPENDING AND AN INCOMETAX CUT OF 5 TRILLION YEN OR MORE STILL SUCH A PACKAGE MIGHT BE TOO LITTLE AND TOO LATE TO SPARK MUCH BUSINESS ACTIVITY FOR MONTHS JAPANESE INDUSTRY LEADERS AND INVESTORS HAVE BEEN CALLING FOR A MUCH BIGGER TAX CUTAT LEAST 10 TRILLION YEN LONDON SHARES EASED BUT FINISHED ABOVE THE DAY'S LOWS MADRID'S MARKET POSTED ITS FIFTH RECORD HIGH THIS YEAR HONG KONG STOCKS LOST 22 AMID A CONTINUING SINOBRITISH DISPUTE ABOUT AIRPORT FINANCING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11444 UP 103 REFLECTING HIGHER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19916 UP 1166 OR 62 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 10 GAIN IN ITS LOCAL CURRENCY TOY STOCKS TRAILED AT 8793 DOWN 218 OR 24 WITH SEGA ENTERPRISES OF JAPAN SLIDING 69 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 79 POINTS TO 34361 THE FT 30STOCK INDEX DROPPED 50 POINTS TO 26412 VOLUME WAS 8293 MILLION SHARES COMPARED WITH 9849 MILLION SHARES A DAY EARLIER THE LONDON MARKET HAD BEEN EXPECTED TO FALL SHARPLY CONTINUING THE PREVIOUS DAY'S SLIDE PRICES DROPPED IN REACTION TO WEAK DEMAND AT THE BRITISH GOVERNMENT'S BOND AUCTION BUT REBOUNDED AS BUYERS EMERGED TO LIMIT THE SLIDE AND THE FOCUS SHIFTED TO PICKING UP BARGAINS IN FRANKFURT THE MARKET WAS QUIET AND THE DAX 30STOCK INDEX FELL 761 POINTS TO 211917 IN PARIS WHERE CORPORATE EARNINGS PROVIDED THE FOCUS EQUITIES ROSE AFTER REBOUNDING FROM A WEAK OPENING IN MADRID STOCKS SURGED 16 TO A NEW HIGH LED BY A RECOVERY IN THE BANKING SECTOR SINCE SPANISH BOND YIELDS HAVE FALLEN DOMESTIC INVESTORS CONTINUED TO POUR MONEY INTO THE STOCK MARKET IN STOCKHOLM SHARES ROSE AS DEMAND BY FOREIGN INVESTORS LED TO A WAVE OF BUYING AND IN ZURICH PRICES OVERCAME PROFITTAKING TO SCORE SOLID GAINS AS MANY FUNDS BOUGHT STOCKS NOW MORE ATTRACTIVE GIVEN LOW BONDMARKET YIELDS IN HONG KONG PRICES SKIDDED IN THE WAKE OF CHINESE COMPLAINTS ABOUT THE BRITISH COLONY'S HUGE NEW AIRPORT PROJECT CHINA WHICH TAKES OVER SOVEREIGNTY OF HONG KONG IN 1997 CHALLENGED THE TERRITORY'S RIGHT TO PROCEED WITH THE AIRPORT WORK WITHOUT A SINOBRITISH FINANCING AGREEMENT SOME INVESTORS USED THE DISPUTE AS AN EXCUSE TO TAKE PROFITS IN SINGAPORE SHARES FINISHED FLAT RECOVERING FROM A DEEP PLUNGE STEMMING FROM SELLING OF MALAYSIAN SHARES AND A WEAK MALAYSIAN CURRENCY RUMORS THAT THE MALAYSIAN GOVERNMENT WOULD SUPPORT THE MARKET SPARKED A BUYING SCRAMBLE IN SINGAPORE IN KUALA LUMPUR STOCKS REBOUNDED VIGOROUSLY FROM AN INTRADAY TUMBLE TO END 17 HIGHER IN MANILA PRICES SLUMPED 34 ON AN IMPENDING OIL PRICE RISE WHICH COULD TRIGGER INFLATIONARY PRESSURE IN SEOUL STOCKS ROSE FOR THE FOURTH SESSION IN A ROW WHILE DEPOSITS WITH BROKERAGE FIRMS CONTINUED TO SWELL SIGNALING BOURSE STRENGTH 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 9401270120 940127 POLITICS & POLICY BATTLE LINES FORM ON ROLE FOR BABY BELLS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BATTLE LINES BEGAN FORMING IN THE HOUSE YESTERDAY OVER HOW QUICKLY AND EASILY BABY BELLS SHOULD BE ALLOWED TO PROVIDE LONGDISTANCE SERVICE DURING THE FIRST SUBCOMMITTEE HEARING ON A BILL TO OPEN COMPETITION IN THE TELECOMMUNICATIONS INDUSTRY REP MIKE SYNAR D OKLA AND OTHER CONGRESSIONAL SUPPORTERS OF LONGDISTANCE CARRIERS SAID FEDERAL REGULATORS SHOULD HELP TO DECIDE WHETHER A BABY BELL CAN OFFER LONGDISTANCE SERVICE WITHIN A STATE THE BILL CURRENTLY LEAVES THAT DECISION TO THE STATES FOR THEIR PART THE REGIONAL PHONE COMPANIES ARE SEEKING TO SHORTEN THE WAITING PERIOD FOR ENTRY INTO LONGDISTANCE FROM THE FIVE YEARS DESIGNATED IN THE BILL COSPONSORED BY REPS JACK BROOKS D TEXAS AND JOHN DINGELL D MICH AND THEIR BACKERS ON THE JUDICIARY COMMITTEE INCLUDING REPUBLICAN HAMILTON FISH OF NEW YORK AND DEMOCRAT RICK BOUCHER OF VIRGINIA SAID THE BILL SHOULD IMPOSE A TOUGHER LEGAL STANDARD ON OUTSIDERS STRIVING TO BLOCK A BELL COMPANY'S APPLICATION TO PROVIDE LONGDISTANCE SERVICE IN ADDITION THE BABY BELL SUPPORTERS SAID THE BILL SHOULD BE CHANGED TO ALLOW THE REGIONAL PHONE COMPANIES TO OFFER INCIDENTAL LONGDISTANCE SERVICES SUCH AS COLLECTING TELEVISION PROGRAMMING SENT BY SATELLITE WITHOUT ANY FEDERAL REVIEW UNDER A 1982 CONSENT DECREE BABY BELLS ARE BARRED FROM PROVIDING THESE AND OTHER LONGDISTANCE SERVICES BELL ATLANTIC CORP HAD TO APPLY FOR A WAIVER FROM THE JUSTICE DEPARTMENT FOR ITS PLANNED ACQUISITION OF TELECOMMUNICATIONS INC BECAUSE TCI HAS CABLEPROGRAMMING INTERESTS LONGDISTANCE COMPANIES WANT TO KEEP THAT RESTRICTION ON BABY BELLS INTACT ANNE BINGAMAN THE JUSTICE DEPARTMENT'S TOP ANTITRUST OFFICIAL SAID IN TESTIMONY YESTERDAY THAT IT MAKES SENSE FOR BELL COMPANIES TO BE ABLE TO PROVIDE SUCH INCIDENTAL LONGDISTANCE SERVICE AS WELL AS CERTAIN CELLULARPHONE TRANSMISSIONS WITHOUT SEEKING FEDERAL APPROVAL STILL SHE AND LARRY IRVING ASSISTANT COMMERCE SECRETARY MADE CLEAR THAT THEY WOULDN'T RECOMMEND ANY CHANGE THAT WOULD UPSET A COMPROMISE WORKED OUT LAST YEAR BY MR DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND MR BROOKS CHAIRMAN OF THE JUDICIARY COMMITTEE MS BINGAMAN REFERRING TO A DELICATE BALANCE SAID SHE THINKS THE BILL'S DIVISION OF REGULATORY POWERS IS JUST EXACTLY RIGHT THE BILL REQUIRES A BABY BELL TO APPLY TO THE FEDERAL COMMUNICATIONS COMMISSION AND THE JUSTICE DEPARTMENT BEFORE ENTERING LONGDISTANCE OR MANUFACTURING ANOTHER BUSINESS THEY ARE BARRED FROM BY THE 1982 DECREE BELL COMPANIES DON'T WANT TO UPSET THE BALANCE EITHER SINCE THEY'LL HAVE TO FIGHT THE CONSENT DECREE IN COURT IF THE BROOKSDINGELL BILL DOESN'T REPLACE IT WE'RE SUPPORTING THE BILL AND WE WANT TO WORK WITH THE TWO CHAIRMEN TO MAKE IT BETTER UNLIKE SOME PARTIES IN THE DEBATE SAID AUBREY SARVIS A BELL ATLANTIC LOBBYIST HE SAID AMERICAN TELEPHONE & TELEGRAPH CO IS TRYING TO KILL THE BILL BUT AN AT&T SPOKESMAN DENIED THAT SAYING WE'RE GOING TO WORK TO IMPROVE IT AT&T AND OTHER LONGDISTANCE CARRIERS ARE SCHEDULED TO TESTIFY NEXT WEEK SPRINT CORP YESTERDAY SAID IT WOULD PROPOSE AMENDMENTS TO THE BILL BUT WASN'T SPECIFIC 9401270119 940127 ECONOMY PAST HEALTHCARE REFORM CAMPAIGNS BROUGHT ONLY BRIEF RELIEF FROM COSTS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IS THE WIDELY NOTED MODERATION IN HEALTHCARE COSTS AND SPENDING HERE TO STAY IT WASN'T BEFORE OVER THE PAST TWO DECADES WHENEVER THE GOVERNMENT MOVED AGAINST HEALTHCARE COSTS OR EVEN THREATENED TO ACT IN A MAJOR WAY THE GROWTH IN NATIONAL HEALTH SPENDING HAS SLOWED ONLY TO ACCELERATE SHARPLY ONCE THE THREAT OF GOVERNMENT CONTROLS WAS PASSED IN THE EARLY 1970S WHEN PRESIDENT NIXON IMPOSED WAGE AND PRICE CONTROLS AND PROPOSED REQUIRING ALL EMPLOYERS TO PAY PART OF THEIR WORKERS' HEALTH INSURANCE PREMIUMS THE ANNUAL RISE IN INFLATIONADJUSTED HEALTH SPENDING SHRANK FROM 9 IN 1972 TO 3 IN 1973 AND 2 IN 1974 WHEN THE CONTROLS WERE EASED AND THE PRESIDENT'S HEALTH PROPOSAL DIED IN CONGRESS THE INCREASE CLIMBED BACK TO 5 IN 1975 AND SOARED TO 8 IN 1976 THE MOST GRAPHIC EXAMPLE CAME DURING THE CARTER ADMINISTRATION WHEN THE WHITE HOUSE WAS PUSHING A BILL TO CAP HOSPITAL CHARGES AND CRAFTING A PROPOSAL TO EXTEND HEALTH COVERAGE TO ALL AMERICANS THE ANNUAL INCREASE IN INFLATIONADJUSTED NATIONAL HEALTH SPENDING SLOWED FROM 5 IN 1978 TO 1 IN BOTH 1979 AND 1980 ONLY TO CATAPULT BACK UP TO 5 IN 1981 ONCE PRESIDENT CARTER'S PROPOSALS HAD DIED AND RONALD REAGAN HAD REPLACED HIM IN THE OVAL OFFICE BY 1983 INFLATIONADJUSTED HEALTH SPENDING WAS GROWING AT 7 A YEAR THE HEALTHSPENDING STATISTICS WERE COMPILED RECENTLY BY KENNETH THORPE THE TOP ECONOMIST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE CLINTON ADMINISTRATION IS CURRENTLY ENGAGED IN AN ALLOUT EFFORT TO KEEP PEOPLE FROM BEING LULLED BY A RECENT SPATE OF GOOD NEWS ON THE HEALTHCOST FRONT THE WHITE HOUSE FEARS THE ROSY OUTLOOK WILL SAP SOME OF THE MOMENTUM FOR OVERHAULING THE HEALTHCARE SYSTEM IF WE DON'T HAVE A PLAN FOR COST CONTAINMENT WE'LL BE BACK IN THE STEW AGAIN MR THORPE ADMONISHED A BUSINESS AUDIENCE EARLIER THIS WEEK THERE ARE EXPERTS WHO THINK THAT THIS TIME COULD BE DIFFERENT THE HEALTHCARE MARKET HAS GONE THROUGH VAST CHANGE IN RECENT YEARS WITH LARGE EMPLOYERS INSISTING ON DISCOUNTS FROM DOCTORS AND HOSPITALS A HUGE INCREASE IN THE USE OF HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGEDCARE NETWORKS AND A RECENT SPATE OF MERGERS AMONG HOSPITALS AND OTHER HEALTHCARE PROVIDERS THE RECENT NEWS ON HEALTH COSTS HAS BEEN BRIGHT IN 1993 MEDICAL COSTS ROSE 54 THE SMALLEST ANNUAL INCREASE SINCE 1973 THE LABOR DEPARTMENT SAYS AND AFTER COMPLAINING OF BEING STIFLED BY RISING EMPLOYEE HEALTH COSTS BUSINESSES HAVE RECENTLY REPORTED A MODERATION IN MEDICAL EXPENSES SOME ECONOMISTS SUCH AS UWE REINHARDT OF PRINCETON CITE THE HILLARY FACTOR REFERRING TO HILLARY RODHAM CLINTON WHO IS LEADING THE ADMINISTRATION'S HEALTHCARE REFORM EFFORTS DRUG COMPANIES FOR EXAMPLE FEARING THE PROSPECT OF GOVERNMENT PRICE CONTROLS HAVE SAID THEY WILL HOLD DOWN PRICES VOLUNTARILY AND SO FAR THIS YEAR THEY HAVE KEPT THEIR WORD BUT MARK PAULY CHAIRMAN OF THE HEALTH SYSTEMS DEPARTMENT AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL SAYS HE BELIEVES PART OF THE CURRENT MODERATION SIMPLY REFLECTS A SLOWING OF THE OVERALL INFLATION RATE FOR SOME OF IT WE SHOULDN'T BE LOOKING FOR ANY CAUSE OTHER THAN THE FEDERAL RESERVE AND MACROECONOMIC POLICY HE SAYS IF CONGRESS FAILS TO PASS A MAJOR HEALTHCARE COSTCONTROL BILL MR PAULY PREDICTS THAT HEALTHCARE COSTS MAY REACCELERATE A BIT BUT HE SAYS CITING THE CHANGES IN THE INDUSTRY THE LONGTERM TREND IS PROBABLY FOR SMALLER INCREASES NEVERTHELESS SUSPICION OF THE INDUSTRY WILL PERVADE THE POLITICAL DEBATE ON CAPITOL HILL THIS TIME AROUND HOUSE MAJORITY LEADER RICHARD GEPHARDT A SUPPORTER OF THE CLINTON HEALTH PLAN OPPOSED PRESIDENT CARTER IN THE 1970S FIGHT OVER HEALTH COSTS AND OFFERS HIS EXPERIENCE NOW AS A LESSON TO THOSE WHO BELIEVE THAT THE PROBLEM WILL SOLVE ITSELF THIS INDUSTRY SAID THEN IT COULD CONTROL COSTS VOLUNTARILY AND COSTS DID SLOW DOWN THE MISSOURI DEMOCRAT SAYS BUT THE MINUTE CONGRESS VOTED TO MAKE THE PROPOSED CONTROLS VOLUNTARY HE SAYS COSTS ESCALATED DAVID ROGERS AND MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE 9401270118 940127 INTERNATIONAL GERMAN PACT PAVES WAY TO PRIVATIZE PART OF TELEKOM BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GERMANY IS SET TO PRIVATIZE PART OF ITS NATIONAL PHONE COMPANY CREATING A GIANT TO RIVAL THE LIKES OF BRITISH TELECOMMUNICATIONS PLC OF THE UNITED KINGDOM AND USBASED MCI COMMUNICATIONS CORP AN ACCORD REACHED LATE MONDAY BETWEEN GERMANY'S RULING COALITION AND THE MAIN OPPOSITION PARTIES ENDED MONTHS OF POLITICAL WRANGLING OVER THE FUTURE OF DEUTSCHE BUNDESPOST TELEKOM ONE OF THE COUNTRY'S BIGGEST AND MOST BUREAUCRATIC ENTERPRISES IT PAVES THE WAY FOR A CONSTITUTIONAL CHANGE ALLOWING THE SALE OF SHARES TO INVESTORS AS EARLY AS 1996 AND THE OPENING OF VOICE SERVICES IN GERMANY TO COMPETITION BY THE BEGINNING OF 1998 THE COMPANY ONE OF THE MOST PROMINENT SYMBOLS OF GERMANY'S TECHNOLOGICAL DECLINE HAS BEEN PUSHING FOR PRIVATIZATION AS A WAY TO MODERNIZE AND IMPROVE SERVICES RAISING CAPITAL ON WORLD STOCK MARKETS COULD HELP TELEKOM REBUILD EASTERN GERMANY'S DECREPIT PHONE SYSTEM AND REDUCE CHARGES FOR CALLS NUMEROUS STUDIES HAVE SHOWN THAT GERMAN PHONE SERVICE IS BOTH MORE COSTLY AND LESS ADVANCED THAN THAT OF MANY OF THE COUNTRY'S LEADING COMPETITORS TELEKOM FREED FROM POLITICAL INTERFERENCE AND FORCED TO COMPETE COULD BE A MAJOR GLOBAL FORCE SAID A TELECOMMUNICATIONS SPECIALIST AT THE EUROPEAN COMMISSION IN BRUSSELS THIS IS NOT THE IMAGE THAT IT HAS AT PRESENT HOWEVER ALTHOUGH TELEKOM EARNED 65 BILLION MARKS 371 BILLION LAST YEAR ON SALES OF 54 BILLION MARKS PROFIT HAS BEEN EATEN AWAY BY GERMANY'S MONEYLOSING POSTAL SERVICE WHICH IS PART OF TELEKOM'S MONOPOLY MEANWHILE THE EXPENSE OF REBUILDING EASTERN GERMANY'S PHONE SYSTEM HAS PUSHED DEBT TO MORE THAN 100 BILLION MARKS ANALYSTS SAY TELEKOM COULD RAISE AS MUCH AS 15 BILLION MARKS THROUGH PRIVATIZATION PUTTING ITS TOTAL MARKET VALUE BETWEEN 60 BILLION MARKS AND 80 BILLION MARKS THAT WOULD MAKE IT THE LARGEST LISTED COMPANY IN GERMANY AND PLACE IT AMONG EUROPE'S FIVE LARGEST A DISPUTE INSIDE THE RULING COALITION ABOUT THE TERMS OF THE PRIVATIZATION BILL THREATENED TO THROW IT OFF COURSE BUT THE FREE DEMOCRATS THE COALITION'S JUNIOR PARTNER AGREED TO DROP DEMANDS TO SELL OFF THE ENTIRE MONOPOLY WHICH INCLUDES NOT ONLY TELEPHONE VOICE SERVICES AND POSTAL SERVICES BUT ALSO THE TELEPHONELINE NETWORK ITSELF IN EXCHANGE THE FREE DEMOCRATS WON AN AGREEMENT THAT WILL ALLOW TELEKOM TO SELL SHARES IN ITS VOICE SERVICES AS EARLY AS 1996 TWO YEARS EARLIER THAN ORIGINALLY PLANNED THE GERMAN GOVERNMENT WILL HOLD A MAJORITY OF THE NEW COMPANY'S SHARES FOR FIVE YEARS AFTER WHICH IT MAY BECOME TOTALLY CONTROLLED BY THE PRIVATE SECTOR IT IS STILL UNDECIDED WHEN OR IF THE PHONE NETWORK OR MAIL SERVICES WILL BE PRIVATIZED OR OPENED TO COMPETITION THE BILL STILL MUST GO THROUGH THE FULL PARLIAMENTARY PROCESS BUT PARTY REPRESENTATIVES SAID THEY DON'T EXPECT MAJOR PROBLEMS A FIRST READING OF THE BILL IS SCHEDULED FOR NEXT WEEK 9401270117 940127 FORD IS EXPECTED TO OFFER LEASES FOR USED AUTOS PLAN MAY BE UNVEILED SOON AS CAR MAKER EXPANDS AGGRESSIVE PROMOTIONS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS EXPECTED TO UNVEIL NEXT WEEK A BIG PUSH INTO LEASING USED VEHICLES WHICH COULD MARK ANOTHER SIGNIFICANT CHANGE IN THE WAY AMERICANS BUY CARS FORD'S AGGRESSIVE LEASE PROMOTIONS HAVE GIVEN IT FIVE OF THE 10 BESTSELLING VEHICLES IN AMERICA AND WERE A CRUCIAL FACTOR IN ITS 1992 DRIVE TO MAKE THE TAURUS THE TOPSELLING US CAR NOW FORD IS EXPECTED TO EXPAND ITS LEASING EFFORTS INTO THE HUGE USEDCAR ARENA ACCORDING TO FORD DEALERS WHO HAVE BEEN TOLD OF THE INITIATIVE COMPANY OFFICIALS DECLINED TO COMMENT IF THE PROGRAM CATCHES ON AND INDUSTRY ANALYSTS FORD DEALERS AND SOME COMPETITORS THINK IT MAY SOME FORD CUSTOMERS MAY NEVER BUY ANOTHER CAR OR TRUCK AGAIN THEY WOULD JUST LEASE THEM MAYBE FORD WILL ALWAYS OWN THE VEHICLE SAYS CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT FOR AUTOPACIFIC INC BASED IN SANTA ANA CALIF THEY WILL LEASE IT SIX TIMES AND THEN SEND IT TO THE SCRAP HEAP SOME OTHER AUTO MAKERS PRINCIPALLY IN THE LUXURY END OF THE BUSINESS HAVE EXPERIMENTED WITH USEDCAR LEASE PROGRAMS BUT FORD'S WOULD BE THE FIRST MAJOR PROGRAM BY A HIGHVOLUME CAR MAKER GENERAL MOTORS CORP'S FINANCE ARM ANNOUNCED A USEDCAR LEASE PROGRAM LAST SUMMER BUT A SPOKESWOMAN ACKNOWLEDGES THAT IT HASN'T BEEN MARKETED EXTENSIVELY SHE DECLINES TO DISCLOSE HOW MANY USED CARS HAVE BEEN LEASED UNDER IT I DON'T KNOW IF USEDCAR LEASING WILL GO ANYWHERE BUT IT SOUNDS AS IF IT SHOULD WORK SAYS PETE GEROSA THE GENERAL SALES AND SERVICE MANAGER OF GM'S CADILLAC DIVISION FOR FORD THE USEDCAR LEASE PROGRAM COULD HELP ANSWER A QUESTION THAT THE COMPANY'S DEALERS HAVE BEGUN ASKING WHAT TO DO WITH THE MORE THAN 250000 TWOYEAROLD LEASED FORDS THAT ARE SCHEDULED TO COME BACK INTO THEIR HANDS THIS YEAR THAT FIGURE IS EXPECTED TO RISE TO MORE THAN 300000 NEXT YEAR ACCORDING TO CNW MARKETING/RESEARCH A BANDON ORE CONCERN THAT TRACKS LEASING TRENDS ART SPINELLA VICE PRESIDENT OF CNW MARKETING/RESEARCH SAYS THAT IN A FEW YEARS LEASING COULD ACCOUNT FOR NEARLY HALF OF ALL FORD'S VEHICLE TRANSACTIONS IN RECENT YEARS LEASING HAS RISEN IN POPULARITY TO GRAB A SIGNIFICANT SHARE OF THE INDUSTRY'S SALES ACTIVITY LAST YEAR LEASING ACCOUNTED FOR 20 OF ALL LIGHT VEHICLE SALES ACCORDING TO CNW MARKETING/RESEARCH FORD ACCOUNTED FOR NEARLY 30 OF THE LEASING ACTIVITYTOPS IN THE INDUSTRY GROWTH WAS ALSO AGGRESSIVE IN 1993 WITH FORD'S LEASING ACTIVITY JUMPING 323 WHILE THE INDUSTRY'S ROSE 352 FORD DEALERS SAY CURRENT STRONG DEMAND FOR USED AUTOMOBILES ENSURES THAT A MARKET EXISTS FOR CARS AND TRUCKS COMING OFF LEASES OFFERED BY THE COMPANY THE RELEASED FORDS SHOULD BE ATTRACTIVE THEY ADD BECAUSE NEW CARS ARE GROWING INCREASINGLY EXPENSIVE AND RELEASED FORDS SHOULD CARRY LOWER PAYMENTS THAN WHAT ONE MIGHT TYPICALLY PAY UNDER AN INSTALLMENT LOAN INDUSTRY REACTION TO FORD'S PLAN ISN'T EXPECTED TO BE SWIFT FORD HOLDS A FINANCING ADVANTAGE OVER GM AND CHRYSLER CORP BECAUSE IT HAS A HIGHER CREDIT RATING AND CAN THEREFORE BE MORE AGGRESSIVE IN LEASING CHRYSLER IS A SMALLER PLAYER IN NEWCAR LEASING AND DOESN'T OFFER A USEDCAR LEASE FORD'S EXPANDING STAKE IN LEASING DOES POSE SOME RISKS THE AUTO MAKER IS ESSENTIALLY GAMBLING THAT IT CAN ACCURATELY PREDICT THE RESALE VALUE OF ITS USED VEHICLES A FACTOR THAT PLAYS A DIRECT ROLE IN DETERMINING THE LEASE PAYMENTS ON USED AND NEW CARS INDUSTRY ANALYSTS AREN'T SURE WHAT IMPACT IF ANY MISCALCULATIONS COULD HAVE ON FORD'S BALANCE SHEETS OR ON THE PRICES OF ITS NEW VEHICLES ON THE OTHER HAND THE BENEFITS MAY OUTWEIGH THE RISKS CUSTOMERS ARE LIKELY TO CHANGE CARS MORE FREQUENTLY BECAUSE OF FORD'S PREFERENCE FOR TWOYEAR DEALS DEALERS ARE LIKELY TO SEE REPEAT BUSINESS SOAR AS CONSUMERS TURN IN VEHICLES AT THE END OF THEIR LEASE TERMS AND FORD IS LIKELY TO ESTABLISH A STRONG PRESENCE IN THE USEDVEHICLE MARKET WHERE IT HAS TYPICALLY LOST SALES TO INDIVIDUALS AND INDEPENDENT DEALERS THE INITIATIVE ALSO HELPS FORD TO TACKLE THE AFFORDABILITY QUESTION AS NEWCAR PRICES KEEP RISING AUTO MAKERS IN THE PAST HAVE HAD TO RESORT TO REBATES OR VALUEPRICED SPECIALS FORD HOWEVER IS BETTING THAT LEASING WILL DO A BETTER JOB OF APPEALING TO THE MONTHLY PAYMENT MINDSET OF MOST CAR BUYERS 9401270116 940127 MONEY FUND YIELDS ARE LITTLE CHANGED NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE LITTLE CHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 272 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLIPPED TO 268 FROM 269 WHILE THE 30DAY SIMPLE YIELD EASED TO 271 FROM 272 THE 30DAY COMPOUND YIELD EDGED DOWN TO 274 FROM 275 ASSETS OF 637 TAXABLE FUNDS ROSE BY 434 BILLION TO 49826 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ADDED 606 BILLION TO TAXABLE ASSETS WHILE INDIVIDUAL INVESTORS WITHDREW 173 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 60 DAYS FOR TAXEXEMPT FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD ROSE TO 177 FROM 168 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 277 FOR SOMEONE PAYING 36 IN TAXES AND TO 293 FOR THOSE WHO PAY 396 ASSETS OF 340 TAXEXEMPT FUNDS FELL BY 123 BILLION TO 11045 BILLION THE NEWSLETTER SAID THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 58 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9401270115 940127 DOMINO'S FRANCHISES IN UK ANN ARBOR MICH DOMINO'S PIZZA INTERNATIONAL INC SIGNED AN AGREEMENT GIVING FRANCHISE RIGHTS TO DOMINO'S PIZZA GROUP LTD OF THE UNITED KINGDOM TO OVERSEE THE 75 UK STORES AND OPEN AT LEAST 200 STORES IN FOUR YEARS IN THE UK DOMINO'S SAID THE UK STORES HAD SALES OF MORE THAN 26 MILLION IN 1993 DOMINO'S PIZZA GROUP WILL OVERSEE TRAINING MARKETING AND DEVELOPMENT SUPPORT TO THE EXISTING 32 FRANCHISE OWNERS DOMINO'S PIZZA INTERNATIONAL HAS MORE THAN 5200 STORES THROUGHOUT THE US AND IN 35 INTERNATIONAL MARKETS 9401270114 940127 MALAYSIA'S BANK NEGARA PLAYS HARD BALL WITH TRADERS BY MICHAEL R SESIT AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL BANK NEGARA MALAYSIA'S CENTRAL BANK HAS A REPUTATION THAT'S UNIQUE AMONG THE WORLD'S MONETARY AUTHORITIES WHILE IT HAS THE POWERS AND RESPONSIBILITIES OF A FEDERAL RESERVE IT'S ALSO KNOWN FOR THE SWASHBUCKLING SPECULATIVE HABITS OF A GEORGE SOROS AFTER YEARS OF ROILING OTHER PEOPLES' CURRENCIES AND FINANCIAL MARKETS FOR ITS OWN PROFIT THE BANK IS GETTING A TASTE OF ITS OWN MEDICINE AS IT BATTLES SOME OF THE WORLD'S BIGGEST SPECULATORS FOR CONTROL OF ITS OWN CURRENCY THE MALAYSIAN DOLLAR INTERNATIONAL HEDGE FUNDS BANKS MUTUAL FUNDS AND OTHER HIGH ROLLERS HAVE PLACED BILLIONS OF US DOLLARS OF BETS ON THE MALAYSIAN DOLLAR IN RECENT WEEKS EXPECTING THE CURRENCY TO REBOUND AS MUCH AS 20 BY SUMMER FIDELITY INVESTMENTS AND GT CAPITAL MANAGEMENT INC ARE PARTICIPATING IN THE WAGER AS ARE CURRENCY SPECIALISTS SUCH AS EZRA ZASK ASSOCIATES INC BANK NEGARA IS AGGRESSIVELY COUNTERING THE SPECULATORS' BETS AS IT FIGHTS TO KEEP CONTROL OF ITS MONETARY POLICY AND FORESTALL THE HARM THAT AN APPRECIATING MALAYSIAN DOLLAR WOULD DO TO EXPORTS LARGELY THROUGH CAGEY EXERCISE OF ITS CENTRALBANK POWERS BANK NEGARA SEEMS TO HAVE MUSCLED ITS WAY TO VICTORY SO FAR THERE'S NO QUESTION THAT NEGARA IS WINNING CONCEDES THE HEAD OF PROPRIETARY TRADING AT A BIG US BANK HE AND OTHER TRADERS ESTIMATE THAT SPECULATORS HAVE ALREADY LOST SEVERAL HUNDRED MILLION US DOLLARS IN THE SHOWDOWN SINCE LATE DECEMBER BANK NEGARA OFFICIALS MEANWHILE WOULDN'T COMMENT A CRITICAL WEAPON IN THE BANK'S ARSENAL HAS BEEN ITS ABILITY TO ABRUPTLY REWRITE MALAYSIA'S BANKING RULES IN WAYS THAT LEAVE FOREIGN SPECULATORS HIGH AND DRY THROUGH MOVES THAT EFFECTIVELY CURBED LOCAL BANKS' ABILITY TO TRADE WITH THE SPECULATORS AND TO PAY INTEREST ON MALAYSIANDOLLAR DEPOSITS TO FOREIGN INSTITUTIONS THE CENTRAL BANK HAS PINIONED MANY FOREIGN INVESTORS IN MONEYLOSING POSITIONS WHENEVER YOU HAVE A SMALL CURRENCY IN A CONTROLLED MARKET WHERE YOU HOLD MOST OF THE TRUMP CARDS YOU CAN LOAD THE DICE AND CHANGE THE HOUSE RULES AS MUCH AS YOU LIKE SAYS A FORMER EUROPEAN CENTRAL BANKER YOU CAN MAKE THE SPECULATORS LOOK LIKE FOOLS BANK NEGARA CUT A SWATH THROUGH CURRENCY MARKETS IN THE 1980S THROUGH WHAT TRADERS CALLED ITS LIGHTNING RAIDS THE CENTRAL BANK WOULD ROUTINELY ROIL MARKETS BY COMING IN LATE IN THE AFTERNOON WITH TRADES AS LARGE AS 250 MILLION AT A TIME AND BECAUSE CURRENCY MARKETS WERE SMALLER AND EASIER TO MANIPULATE IN THOSE DAYS SUCH BETS WERE ENOUGH TO MOVE THE PRICE OF SOME CURRENCIES 1 IN A DAY CERTAINLY BANK NEGARA KNOWS HOW A SPECULATOR'S MIND WORKS AND THEREFORE KNOWS HOW TO TAKE THE SPECULATORS OUT SAYS RONALD LAYARDLIESCHING DIRECTOR OF RESEARCH AT PARETO PARTNERS A LONDON INTERNATIONAL FUND MANAGER THE LATEST CLASH HAS BECOME SO FEROCIOUS AND THE STAKES HAVE RISEN SO HIGH THAT EVEN THE BIGGEST MOST SECRETIVE HEDGE FUND MANAGERS HAVE BEGUN COLDCALLING JOURNALISTS IN HOPES OF EMBARRASSING THE MALAYSIAN CENTRAL BANK INTO BACKING OFF AMONG OTHER THINGS THEY ACCUSE BANK NEGARA OF MANIPULATING EXCHANGE RATES TO HIDE ITS OWN TRADING LOSSES AND OF SABOTAGING MALAYSIA'S ECONOMY IN THE PROCESS THE CURRENCY BRINKMANSHIP HAS HAD DIRE CONSEQUENCES FOR MALAYSIA'S FINANCIAL MARKETS AS THE MALAYSIAN DOLLAR SLID 8 IN THE PAST MONTH STOCK PRICES IN KUALA LUMPUR TUMBLED NEARLY 22 WIPING OUT NEARLY A THIRD OF THE VALUE OF FOREIGNERS' STOCKHOLDINGS AND REVERSING A LARGE PART OF THE STOCK MARKET'S TORRID 1993 GAINS THERE WILL COME A TIME WHEN THE COUNTRY NEEDS FRIENDS NEEDS TO ATTRACT FOREIGN INVESTMENT AND WILL HAVE A HARDER TIME CONVINCING INVESTORS THAT IT'S A LEVEL PLAYING FIELD SAYS EZRA ZASK WHO RUNS THE NORFOLK CONN CURRENCYTRADING FIRM OF THE SAME NAME IN THE LONG RUN THE BOOMING MALAYSIAN ECONOMY NOT SPECULATORS IS LIKELY TO UNDO BANK NEGARA'S CURRENCY GAMBLE THE ECONOMY HAS EXPANDED AT AN AVERAGE 86 ANNUAL CLIP IN THE LAST SIX YEARS THE NATION BOASTS A STABLE GOVERNMENT THAT PROMOTES ECONOMIC GROWTH A LARGE TRADE SURPLUS AND AN EXPORT MARKET THAT IS HIGHLY COMPETITIVE EVEN BY ASIAN EMERGINGMARKET STANDARDS IT IS OUR VIEW THAT THE FUNDAMENTALS WILL STILL PREVAIL AND THAT OVER TIME THE CURRENCY WILL APPRECIATE RELATIVE TO THE US DOLLAR SAYS THOMAS J STEFFANCI FIDELITY'S HEAD OF FIXEDINCOME IN BOSTON ON THE STRENGTH OF SUCH VIEWS HUGE AMOUNTS OF MONEY HAVE POURED INTO MALAYSIA FROM ABROAD IN RECENT YEARS LATE LAST MONTH THOSE CAPITAL INFLOWS TURNED INTO A TORRENT AFTER BANK NEGARA SUDDENLY DROVE THE MALAYSIAN DOLLAR DOWN 56 OVER A SIXDAY PERIOD BEGINNING CHRISTMAS EVE THE CENTRAL BANK HAD EXECUTED A SIMILAR MANEUVER AT THE END OF 1992 REPORTEDLY TO MASK CURRENCY LOSSES AND TO INCREASE THE VALUE OF ITS FOREIGNEXCHANGE RESERVES IN LOCAL CURRENCY TERMS BANK NEGARA DID REPORT LOSING THE EQUIVALENT OF ABOUT 36 BILLION DURING 1992 BUT SOME WESTERN CENTRAL BANKERS AND TRADERS SUSPECT THAT THOSE LOSSES MAY HAVE BEEN AS HIGH AS 6 BILLION AND THAT BANK NEGARA HID THEIR FULL EXTENT BY ROLLING THEM OVER INTO 1993 INDEED LAST FRIDAY MALAYSIA'S FINANCE MINISTER DATUK ANWAR IBRAHIM ACKNOWLEDGED THAT THE CENTRAL BANK WOULD REPORT ADDITIONAL FOREIGNEXCHANGE LOSSES FOR 1993 BUT DIDN'T DISCLOSE THE AMOUNT AFTER THE MALAYSIAN DOLLAR'S YEAREND TUMBLE IN 1992 THE CURRENCY HAD BOUNCED RIGHT BACK EXPECTING A SIMILAR REBOUND THIS TIME AROUND GLOBAL SPECULATORS AND INVESTORS STARTED SNAPPING UP MALAYSIAN DOLLARS AT THE TURN OF THE YEAR TO PARTICIPATE IN THE RALLY THE UPSHOT WAS THAT WHAT STARTED ORIGINALLY AS A SIMPLE YEAREND WINDOW DRESSING' EXERCISE SOON DEGENERATED INTO A SHOW OF STRENGTH BETWEEN THE CENTRAL BANK AND FOREIGN PORTFOLIO INVESTORS ACCORDING TO A REPORT FROM LEHMAN BROTHERS INC TO CLIENTS THIS WEEK AT FIRST THE RECENT BULLISH PLAYS ON THE MALAYSIAN DOLLAR LOOKED LIKE A SELFFULFILLING PROPHECY IN THE FIRST FEW DAYS OF 1994 THE FRENZY OF SPECULATIVE BUYING CAUSED THE CURRENCY TO RECOVER ROUGHLY HALF THE GROUND IT HAD LOST AGAINST THE US DOLLAR BETWEEN CHRISTMAS AND NEW YEAR'S BUT IN THE FIRST AND SECOND WEEKS OF JANUARY BANK NEGARA BLINDSIDED THESE INVESTORS BY CHANGING MALAYSIA'S BANKING RULES AND BY DRIVING DOMESTIC INTEREST RATES THROUGH THE FLOOR TRADERS SAY THAT AT ONE POINT MALAYSIAN INTEREST RATES FOR FOREIGNERS WERE ACTUALLY NEGATIVE TO GET RID OF MALAYSIAN DOLLARS YOU HAD TO PAY SOMEONE TO TAKE THEM SAYS A TRADER AT A US BANK SUCH ROCKBOTTOM RATES MEANT THAT HIGHLY LEVERAGED SPECULATORS WHO HAD IN EFFECT BORROWED OTHER CURRENCIES TO BUY MALAYSIAN DOLLARS STARTED LOSING MONEY ON THEIR POSITIONS SINCE THEY WERE PAYING MORE FOR THEIR BORROWINGS THAN THEY WERE GETTING BACK ON THEIR INVESTMENTS HELPING BANK NEGARA TO TURN THE TABLES WERE RULE CHANGES THAT FORCED MALAYSIAN BANKS TO INCREASE THEIR INTERESTFREE DEPOSITS AT THE CENTRAL BANK AND PENALIZED THEM FOR HOLDING FOREIGN FUNDS THAT WEREN'T TRADERELATED OR INTENDED FOR INVESTMENT IN PLANT EQUIPMENT OR STOCKS WHILE BARING SECURITIES LTD TOLD CLIENTS THAT THE MEASURES WERE LONG OVERDUE AND NECESSARY TO CURB THE INFLATIONARY IMPACT OF THE HUGE CAPITAL INFLOWS FROM ABROAD IT ADDED THAT THEY ALSO SEEM DESIGNED TO PUNISH THE SPECULATORS LIKE A PRIZEFIGHTER WITH AN OPPONENT ON THE ROPES BANK NEGARA MOVED TO PUMMEL SPECULATORS AGAIN SATURDAY IT FORBADE LOCAL BANKS FROM SELLING SHORTTERM FIXEDINCOME INVESTMENTS TO FOREIGNERS AND REQUIRED DOMESTIC BANKS TO PARK DEPOSITS FROM FOREIGN INSTITUTIONS IN NONINTEREST BEARING ACCOUNTS AT THE CENTRAL BANK THE MOVE ALSO SENT THE MALAYSIAN DOLLAR 1 TO 15 LOWER AGAINST THE US DOLLAR FURTHER ERODING THE VALUE OF FOREIGNERS' MALAYSIAN HOLDINGS A SIGNIFICANT NUMBER OF PEOPLE ARE TRYING TO GET OUT AT THE SAME TIME SAYS MR ZASK BUT OTHER INVESTORS ARE STAYING PUT MR STEFFANCI SAYS FIDELITY'S GLOBAL BOND FUND AND SHORTTERM WORLD INCOME FUND CONTINUE TO HOLD MALAYSIAN DOLLARDENOMINATED SECURITIES CHRISTIAN WIGNALL CHIEF INVESTMENT OFFICER AT GT CAPITAL IN SAN FRANCISCO SAYS HIS FIRM REGARDS THE WEAKER MALAYSIAN DOLLAR AS A BUYING OPPORTUNITY MEANWHILE BANKERS SAY THAT BANK NEGARA'S OWN TRADING LOSSES ARE FORCING IT TO REFORM ITS GUNSLINGING WAYS LAST WEEK THE MALAYSIAN FINANCE MINISTER DISCLOSED THAT IN EARLY 1993 BANK NEGARA WAS TOLD TO STOP ITS EXTRA TRADING ACTIVITY TRADERS SAY THAT SINCE THEN THE BANK HAS PULLED BACK ADOPTED A LOWER PROFILE AND SHAKEN UP ITS TRADINGROOM PERSONNEL THEY ARE A LOT MORE DISCREET THAN THEY USED TO BE SAYS ONE LONDON TRADER HE ADDED THEY ARE GETTING MORE SOPHISTICATED 9401270113 940127 ECONOMY VALUE OF CONTRACTS FOR BUILDING FELL 4 IN DECEMBER BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE VALUE OF CONSTRUCTION CONTRACTS CONTINUED TO WANE FOR THE SECOND CONSECUTIVE MONTH SLUMPING 4 IN DECEMBER AN FW DODGE SURVEY REPORTED DESPITE THE RECENT SLUMP TOTAL CONSTRUCTION FOR 1993 ROSE BY 5 TO 264 BILLION THIS COMES ON TOP OF 1992'S 9 GAIN FROM 1991 THE SUBDUED QUALITY OF THE CURRENT REBOUND CERTAINLY FITS IN WELL WITH THE SLOWGROWTH' 1990S SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC HOPEFULLY THE SMALLER INITIAL GAINS WE'VE WITNESSED SO FAR WILL ALSO TRANSLATE INTO AN EXTENDED RECOVERY PERIOD THE REPORT SAID THE DODGE INDEX WHICH USES 1987 AS A BASE YEAR OF 100 FELL TO 102 ON A SEASONALLY ADJUSTED BASIS DOWN FROM NOVEMBER'S REVISED READING OF 106 IN 1993 THE INDEX PEAKED AT 108 IN OCTOBER EVEN WITH THE SLACKENING AT YEAR'S END THE GENERALLY STRONGER PERFORMANCE DURING THE SECOND HALF OF 1993 PUT THE CONSTRUCTION RECOVERY BACK ON TRACK MR MURRAY NOTED AFTER A LACKLUSTER FIRST HALF OF THE YEAR WHEN IT APPEARED THE UPTURN MIGHT BE IN DANGER OF STALLING OUT THE BENEFITS OF LOW MORTGAGE RATES FINALLY CAME THROUGH WITH A SURGE OF SINGLEFAMILY HOUSING WHETHER THE STRONGER PACE OF RECOVERY CAN CONTINUE INTO 1994 WILL DEPEND ON HOW WELL OTHER TYPES OF CONSTRUCTION CAN FOLLOW THE LEAD OF HOUSING FOR THE YEAR NONRESIDENTIAL BUILDING WAS ESSENTIALLY UNCHANGED FROM THE PREVIOUS YEAR BUT REMAINED 18 BELOW 1989'S MOST RECENT PEAK IN DOLLAR VOLUME INSTITUTIONAL BUILDING FELL 2 LAST YEAR LARGELY BECAUSE OF FISCAL CONSTRAINTS ON PUBLICLY FUNDED CONSTRUCTION FOR THE SECOND CONSECUTIVE YEAR BUT THE COMMERCIAL SECTOR WAS ABLE TO PUSH FORWARD 3 LED BY AN 11 JUMP IN STORES AND SHOPPING CENTERS OFFICE BUILDING IN 1993 SAW ITS FIRST GAIN SINCE 1987 RISING 3 THE REPORT NOTED WHILE THE CURRENT LEVEL OF OFFICE CONSTRUCTION REMAINS DISMAL BY ANY MEASURE AT LEAST IT'S NO LONGER EXERTING A DOWNWARD PULL ON THE REST OF THE INDUSTRY MR MURRAY SAID RESIDENTIAL CONSTRUCTION FOR THE YEAR ADVANCED 9 AS SINGLEFAMILY HOUSING DURING THE SECOND HALF OF 1993 REESTABLISHED ITS ROLE AS THE RECOVERY'S LEADING EDGE THE REPORT NOTED THE DOLLAR VALUE OF SINGLEFAMILY HOUSING IN THE FOURTH QUARTER WAS ABOUT 20 ABOVE THE LEVELS REPORTED IN THE FIRST HALF REGIONALLY MOST OF 1993'S GAINS WERE REPORTED IN THE SOUTH CENTRAL WHICH POSTED AN 11 INCREASE AND THE SOUTH ATLANTIC WHICH CLIMBED 8 THE MIDWEST MATCHED THE NATIONAL GAIN OF 5 WHILE THE WEST GREW A SCANT 1 THE NORTHEAST HOWEVER REPORTED A 1 DECLINE 9401270112 940127 WHEN VISITING THE NEW YORK FED REMEMBER TO BRING YOUR PASSPORT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WANT TO KNOW WHAT THEY REALLY TALK ABOUT AT THOSE CLOSEDDOOR MEETINGS AT THE ULTRASERIOUS FEDERAL RESERVE GOLD FOR ONE THING AND THE FACT THAT THE US GOVERNMENT CONSIDERS THE BASEMENT OF THE FEDERAL RESERVE BANK OF NEW YORK WHERE GOLD BARS ARE STORED TO BE A FOREIGN COUNTRY THIS CAN NOW BE TOLD BECAUSE THE FED RESPONDING TO A FREEDOM OF INFORMATION REQUEST SENT THIS NEWSPAPER A HEAVILY BOWDLERIZED TRANSCRIPT OF THE DEC 2 MEETING OF ITS POLICY COMMITTEE MOST OF THE 66 PAGES ARE LARGELY OR ENTIRELY BLANK BECAUSE THE FED ARGUES THAT MUCH OF WHAT IT DISCUSSES IS TOO SENSITIVE FOR RELEASE THAT INCLUDES ALMOST EVERYTHING SAID AT THE MEETING ABOUT THE ECONOMY JERRY JORDAN CLEVELAND FED PRESIDENT DID REPORT THAT THE SITUATION IN MY PART OF THE COUNTRY BRIGHTENED CONSIDERABLY SINCE THE LAST FED MEETING IT TURNED OUT HE WAS TALKING ABOUT THE WEATHER THE SUN CAME OUT VERY BRIEFLY SAID MR JORDAN THE TRANSCRIPT ALSO RECORDS THAT AFTER THE FED'S TOP INTERNATIONAL STAFFER EDWIN TRUMAN GAVE A ROUTINE REPORT CHAIRMAN ALAN GREENSPAN ASKED INCREDULOUSLY DID I HEAR YOU CORRECTLY WHEN YOU SAID THAT THE GOLD EXPORTS IN OCTOBER APPEAR TO HAVE COME FROM THE COFFERS OF THE FEDERAL RESERVE BANK OF NEW YORK IT SEEMS THAT SOME 80 CENTRAL BANKS AND OTHER INSTITUTIONS STORE GOLD BARS VALUED AT SOME 120 BILLION IN VAULTS IN THE NEW YORK FED'S BASEMENT THE NEW YORK FED IS TREATED AS A FOREIGN COUNTRY IN CENSUS BUREAU DATA MR TRUMAN EXPLAINED MUCH AS EMBASSIES ARE TREATED AS FOREIGN TERRITORY AT LEAST ONE OF THE CENTRAL BANKERS LAUGHED OR SO THE TRANSCRIPT RECORDS YOU MEAN A COUNTRY OWNS GOLD AND HAS IT STORED IN THE FEDERAL RESERVE BANK OF NEW YORK AND THEY SHIP IT OUT THAT'S AN EXPORT ASKED FED GOVERNOR WAYNE ANGELL WHO CONSIDERS HIMSELF SOMETHING OF AN EXPERT ON GOLD YES MR TRUMAN EXPLAINS BUT GOVERNMENT BOOKS ALSO RECORD IT AS AN IMPORT SO IT'S BASICALLY A WASH FED GOVERNOR EDWARD KELLEY ASKED THENNEW YORK FED PRESIDENT GERALD CORRIGAN DOES IT HAVE TO GET OUT OF YOUR VAULT AT ALL IN ORDER TO BE CONSIDERED AN IMPORT AND AN EXPORT WELL MR CORRIGAN REPLIED FOR THE RECORD I'M NOT EVEN GOING TO TRY TO ANSWER THAT 9401270111 940127 WHO'S NEWS DIED JOHN J HENNEBERRY 82 A FORMER MANAGING PARTNER CHAIRMAN AND CHIEF FINANCIAL OFFICER OF BAKER WEEKS & CO A NEW YORK INVESTMENT BANKING FIRM IN LONG ISLAND NY OF A HEART ATTACK 9401270110 940127 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SEVERAL TRENDS HAVE RECENTLY TAKEN HOLD IN THE DEVELOPMENT OF SOFTWARE THAT PROMISE TO MAKE IT EASIER AND QUICKER TO GET WORK DONE ON PERSONAL COMPUTERS FIRST MORE PROGRAMS ARE EMERGING THAT ARE NARROWLY FOCUSED ON SPECIFIC TASKS RATHER THAN ON BEING EVERYTHING TO EVERYBODY SECOND SOFTWARE COMPANIES ARE BUILDING INTO THEIR PRODUCTS A DEGREE OF AUTOMATION THAT LETS USERS PERFORM THE MOST COMMON STEPS RAPIDLY WITHOUT MASTERING ALL THE COMMANDS AND TOOLS NORMALLY NEEDED TO DO THEM THESE APPROACHES MAKE IT POSSIBLE FOR BUSINESS PEOPLE WITHOUT ARTISTIC SKILLS TO TURN OUT PROFESSIONALLOOKING ORGANIZATION CHARTS OFFICE LAYOUTS MAPS FLOW CHARTS AND OTHER BUSINESS DOCUMENTS THE RESULT IS A CATEGORY OF SOFTWARE THAT MIGHT BE CALLED MODULAR BUSINESS GRAPHICS IN WHICH YOU BUILD GRAPHIC DOCUMENTS BY SNAPPING TOGETHER THEIR COMPONENTS LIKE KIDS DO WITH LEGOS FOR A DECADE COMPUTERS HAVE OFFERED THE ARTISTICALLY CHALLENGED THE PROMISE OF REAL DRAWING ABILITY BUT THE MACHINES HAVEN'T REALLY DELIVERED BECAUSE MOST DRAWING PROGRAMS HAVE BEEN WICKEDLY HARD TO USE FOR THOSE WITHOUT GOOD SPATIAL REASONING SURE A STRAIGHT LINE STAYED STRAIGHT BUT MAKING IT THE RIGHT LENGTH AND THICKNESS AND CONNECTING IT TO OTHER THINGS USING A MOUSE WAS TOO OFTEN A TIMECONSUMING STRUGGLE FOR THOSE WHO LIKE ME CAN'T DRAW TO SAVE THEIR LIVES AND ART SOFTWARE LIKE OTHER CATEGORIES HAS SUFFERED FROM THE ADDITION OF SO MANY FEATURES AND CONTROLS DEMANDED BY REAL COMPUTER ARTISTS THAT FIGURING OUT HOW TO USE THEM HAS GOTTEN HARDER AND HARDER SO IT'S GOOD NEWS THAT THIS NEW TYPE OF DRAWING PROGRAM HAS EMERGED OVER ABOUT A YEAR THERE ARE AROUND A HALFDOZEN ENTRIES IN THE FIELD BUT THE LEADER IS VISIO 20 BY SHAPEWARE CORP OF SEATTLE AND A KEY COMPETITOR IS SNAPGRAFX BY MICROGRAFX INC OF RICHARDSON TEXAS VISIO COSTS AROUND 125 AT DISCOUNT AND SNAPGRAFX AROUND 96 BOTH REQUIRE COMPUTERS RUNNING MICROSOFT'S WINDOWS SOFTWARE VISIO PRESENTS THE USER WITH SIDEBYSIDE WINDOWS ON THE SCREEN AT THE RIGHT IS A LARGE BLANK SHEET OF ELECTRONIC GRAPH PAPER ON WHICH YOU CREATE A DRAWING TO ITS LEFT IS A SLIMMER STENCIL WINDOW CONTAINING VISIO'S KEY ELEMENT AN ARRAY OF PREDRAWN OBJECTS CALLED SHAPES YOU USE TO PUT TOGETHER A DRAWING THE PROGRAM COMES WITH 20 STENCILS ARRANGED AROUND COMMON THEMES FOR INSTANCE THERE ARE STENCILS WITH ALL THE SHAPES YOU NEED TO CREATE A FLOW CHART OR AN ORGANIZATION CHART OR A SPACE AND FURNITURE PLAN OTHERS HAVE SHAPES DESIGNED TO FIT INTO ROAD MAPS OR BAR AND PIE CHARTS ENGINEERING DIAGRAMS AND MAPS OF THE WORLD THE US AND EUROPE THE COMPANY SELLS EXTRA SETS OF STENCILS AND SHAPES INCLUDING COLLECTIONS FOR HOME DESIGN KIDS LANDSCAPING AND MARKETING FOR 79 THE PROGRAM WORKS ON THE DRAG AND DROP PRINCIPLE TO CONSTRUCT A DRAWING IN THE RIGHTHAND WINDOW YOU MERELY CLICK ON ONE OF THE STOCK SHAPES IN THE STENCIL WINDOW AND HOLDING THE MOUSE BUTTON DOWN DRAG ITS IMAGE ONTO THE ELECTRONIC PAPER WHEN YOU RELEASE THE MOUSE BUTTON THE PROGRAM DROPS THE SHAPE INTO THE DRAWING THERE'S NEVER A NEED TO SKETCH ANYTHING EVEN COOLER IS THE FACT THAT VISIO'S SHAPES ARE INTELLIGENT IF YOU STRETCH OR ROTATE THEM THEY CHANGE SIZE AND ORIENTATION WITHOUT BECOMING DISTORTED IF YOU CONNECT THEM WITH ARROWS OR LINES AND THEN MOVE ONE OF THE CONNECTED ELEMENTS THE OTHERS REMAIN LINKED THE LINES AND ARROWS BEHAVE LIKE RUBBER BANDS AND YOU CAN TYPE ALL SORTS OF TEXT INSIDE THEM WITHOUT WORRYING ABOUT RUNNING OVER THE BORDERS ABOUT THE ONLY REAL DOWNSIDE TO VISIO IS THAT WHILE THE PROGRAM IS BASED ON THESE SIMPLE PRINCIPLES IT IS PACKED WITH A LOT OF TOOLS AND FEATURES FOR MODIFYING AND ARRANGING THE SHAPES AND THUS CAN BE CONFUSING TO NOVICES IN MY VIEW VISIO NEEDS A COLLECTION OF WIZARDS MICROSOFT'S TERM FOR AUTOMATED ROUTINES THAT CREATE BASIC DOCUMENTS OF VARIOUS TYPES WITH A SINGLE MOUSE CLICK THESE COULD LATER BE MODIFIED BY THE USER PERHAPS A VERSION WITH FEWER COMPLICATED TOOLS AND A BUNCH OF WIZARDS MIGHT BE DEVELOPED FOR NOVICES AT BELOW VISIO'S 125 STREET PRICE WHICH IS A BIT STIFF IN A MARKET WHERE SOFTWARE PRICE TAGS ARE PLUNGING IF VISIO IS TOO MUCH FOR YOU YOU MIGHT TRY SNAPGRAFX THIS PROGRAM ALSO WORKS ON THE PRINCIPLE OF PREDRAWN RESIZABLE SHAPES BUT IT DOESN'T RELY HEAVILY ON DRAGANDDROP WHICH CAN REQUIRE CONSIDERABLE DEXTERITY WITH THE MOUSE AND IT HAS MANY FEWER TOOLS AND OPTIONS MAKING FOR A SIMPLER CLEANER SCREEN IN SNAPGRAFX YOU MAINLY ADD SHAPES TO YOUR DOCUMENTS BY CLICKING ON THE SHAPE YOU WANT THEN CLICKING ON AN AREA OF THE PAGE CALLED A PLACEHOLDER THE PROGRAM THEN PUTS THE SHAPE WHERE THE PLACEHOLDER WAS MUCH OF THE RESIZING OF THE DRAWINGS IS DONE BY MOVING LITTLE TAB SYMBOLS LIKE TABS IN A WORDPROCESSING DOCUMENT ALONG THE SCREEN BORDERS BUT BE WARNED SNAPGRAFX IS FAR LESS VERSATILE THAN VISIO IT OFFERS MAINLY PRECOOKED SHAPES FOR CREATING A VARIETY OF CHARTS AND THE SHAPES ARE LESS INTELLIGENT IF YOU WANT TO DO OFFICE LAYOUTS OR ENGINEERING DIAGRAMS OR MAPS IT'S TOUGH IN SNAPGRAFX SPEAKING FOR THE ARTISTICALLY IMPAIRED PEOPLE OF THE WORLD I'M GLAD THESE PROGRAMS EXIST BUT EVEN SO REAL ARTISTS LIKE THE ONE WHO DRAWS THE CLEVER ILLUSTRATIONS FOR THIS COLUMN WON'T BE LOSING SLEEP 9401270109 940127 INTERNATIONAL NESTLE TO BUY TAIWAN'S FOREMOST ZURICH SWITZERLAND'S NESTLE SA THE WORLD'S LARGEST FOOD GROUP SAID IT HAS REACHED AN AGREEMENT TO ACQUIRE FOREMOST FOODS TAIWAN LTD THE PURCHASE PRICE WASN'T DISCLOSED NESTLE SAID FOREMOST FOODS TAIWAN IS THE COUNTRY'S LEADING PRODUCER OF ICE CREAM AND HAS MAJOR MARKET POSITIONS IN THE LIQUID MILK AND YOGURT MARKET FOREMOST FOODS EMPLOYS 400 PEOPLE AND HAD 1993 SALES OF 45 MILLION NESTLE SAID 9401270108 940127 WHO'S NEWS COR THERAPEUTICS INC COR THERAPEUTICS INC SOUTH SAN FRANCISCO CALIF JAMES T DOLUISIO WAS ELECTED TO THE BOARD OF THIS PHARMACEUTICAL MAKER RAISING THE NUMBER OF MEMBERS TO SEVEN MR DOLUISIO 58 YEARS OLD IS DEAN AND HOECHSTROUSSEL PROFESSOR OF PHARMACY AT THE UNIVERSITY OF TEXAS AT AUSTIN 9401270107 940127 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO JOHN L CARL SENIOR VICE PRESIDENTFINANCE AND CONTROLLER OF THIS OIL COMPANY WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE APRIL 1 MR CARL 45 YEARS OLD SUCCEEDS FREDERICK S ADDY 62 WHO IS RETIRING 9401270106 940127 PREMIER ANESTHESIA DOUBLES A CHARGE FOR THE 4TH PERIOD ATLANTA PREMIER ANESTHESIA INC AS PART OF A COMPANYWIDE RESTRUCTURING DOUBLED A PREVIOUSLY ANNOUNCED PRETAX CHARGE TO FOURTHQUARTER EARNINGS TO 24 MILLION IN ADDITION THE COMPANY SAID ITS PRESIDENT RICHARD D BALLARD AND ITS EXECUTIVE VICE PRESIDENT TERRY S VITEZ RESIGNED THEIR POSITIONS EFFECTIVE LAST SUNDAY BOTH MEN ALSO RESIGNED AS DIRECTORS AND WILL REMAIN WITH THE COMPANY AS CONSULTANTS PREMIER ANESTHESIA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RICHARD L JACKSON WILL SUCCEED MR BALLARD AS PRESIDENT THE INCREASE IN THE QUARTERLY EARNINGS CHARGE STEMS FROM THE COMPANY'S DECISION TO UNDERTAKE A MORE RADICAL RESTRUCTURING THAN PREVIOUSLY ENVISIONED MR JACKSON SAID IN AN INTERVIEW PREMIER ANESTHESIA'S PAINRELIEF SUBSIDIARY NOW CALLED THE PAIN RELIEF NETWORK INC HAS BEEN REDUCED TO ABOUT 30 EMPLOYEES FROM 225 HE SAID MOREOVER THE COMPANY PLANS TO SHIFT THE MARKETING OF ITS CORE ANESTHESIA SERVICES AWAY FROM HOSPITALS AND TOWARD SMALLER PRACTICE GROUPS THE RESTRUCTURING CHARGE WILL PRODUCE A LOSS FOR BOTH THE FOURTH QUARTER AND THE YEAR MR JACKSON SAID IN THE 1992 FOURTH QUARTER PREMIER EARNED 976486 OR 11 CENTS A SHARE ON REVENUE OF 163 MILLION FOR ALL OF 1992 THE COMPANY HAD NET INCOME OF 26 MILLION OR 30 CENTS A SHARE ON REVENUE OF 586 MILLION THE REDUCTION OF THE COMPANY'S PAINRELIEF BUSINESS IS LARGELY A RESULT OF BILLING DELAYS IN WORKERS COMPENSATION CASES IN CALIFORNIA SAID MR JACKSON 9401270105 940127 POLITICS & POLICY BLACKS' INCREASING VOCAL OPPOSITION TO VIOLENCE IS MATCHED BY STRONG OPPOSITION TO CRIME BILL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REV JESSE JACKSON THE OFTEN FIERY RAINBOW COALITION PRESIDENT WAS SUBDUED REFLECTIVE NEARLY RHYMELESS AT A RECENT HEARING OF THE CONGRESSIONAL BLACK CAUCUS BRAIN TRUST ON CRIME HE SPOKE SOLEMNLY HIS VOICE BREAKING OF HOW SOME YOUNG BLACK MEN FEEL MORE SECURE IN JAILS THAN ON OUR STREETS WITH TEARS IN HIS EYES HE SPOKE OF DEATH IN HIS OWN NEIGHBORHOOD HERE AND THE PRECARIOUS POSITION OF BLACK YOUTH NEARLY HALF OF ALL MURDER VICTIMS ARE BLACK HE SAID MORE BLACKS KILL EACH OTHER EACH YEAR THAN WERE KILLED IN THE ENTIRE HISTORY OF LYNCHING YET THE REV JACKSON ASSAILED ONE OF THE PRIME LEGISLATIVE VEHICLES FOR DEALING WITH THAT EXPLOSION OF VIOLENCE THE SENATEPASSED CRIME LEGISLATION THAT PRESIDENT CLINTON BACKED IN HIS STATE OF THE UNION ADDRESS THE MEASURE HE DECLARED IS AN ILLCONCEIVED BILL AND A DRACONIAN EXPENSIVE NONREMEDY THE BILL HAS WIDESPREAD BIPARTISAN SUPPORT IN THE SENATE LAWMAKERS CONTEND IT REPRESENTS THE TOUGHEST AND MOST COMPREHENSIVE GOVERNMENT ATTACK YET ON VIOLENT CRIME AN ISSUE AT THE TOP OF THE PUBLIC'S LIST OF CONCERNS IN OPINION POLLS BUT AT A TIME WHEN AFRICANAMERICANS INCREASINGLY ARE SPEAKING OUT AGAINST BLACK CRIMINALS AND THE GANGSTA RAP THAT SEEMS TO GLORIFY VIOLENCE THE BLACK CAUCUS AND OTHERS SAY THE SENATE BILL IS TOO CONCERNED WITH PUNISHMENT AND NOT ENOUGH CONCERNED WITH THE ALLEVIATION OF THE CONDITIONS THAT CAUSE CRIME THE STRONG OPPOSITION TO THE MEASURE PRESENTS A PROBLEM FOR PRESIDENT CLINTON WHOSE SUPPORT FOR THE LEGISLATION PLACES HIM AT ODDS WITH A CORE GROUP OF DEMOCRATS WHO ELECTED HIM CITING MR CLINTON'S EMBRACE OF ONE PROVISION OF THE SENATE BILL MANDATORY LIFE SENTENCES FOR CRIMINALS CONVICTED OF THREE VIOLENT FELONIES THE DEAN OF THE BLACK CAUCUS DEMOCRATIC REP JOHN CONYERS OF MICHIGAN DECRIES THE LOCK'EM UP AND THROW AWAY THE KEY APPROACH THAT ONLY FOOLS THE PUBLIC INTO BELIEVING THAT WE'RE DOING SOMETHING ABOUT CRIME THE WHITE HOUSE WILL TRY TO ASSUAGE AT LEAST SOME OPPONENTS' CONCERNS AS CONGRESS UNDERTAKES TO RECONCILE THE SENATE BILL WITH A MUCH DIFFERENT HOUSE MEASURE JUSTICE DEPARTMENT OFFICIALS WHO WERE CRITICIZED FOR NOT VISIBLY EXERTING INFLUENCE OVER THE SENATE BILL LAST YEAR WILL PLAY A MORE OVERT ROLE IN REMOVING OR MODIFYING THE MORE EXTREME PROVISIONS THIS YEAR DEPUTY ATTORNEY GENERAL PHILIP HEYMANN PLANS TO TESTIFY AT HOUSE CRIME LEGISLATION HEARINGS AND MR CLINTON HIMSELF HELD OUT THE CARROT OF HELP TO ENDANGERED YOUTH IN HIS SPEECH TO CONGRESS WE HAVE GOT TO STOP POINTING OUR FINGERS AT THESE KIDS WHO HAVE NO FUTURE HE SAID AND REACH OUR HANDS OUT TO THEM THE QUESTION THOUGH IS WHETHER ENOUGH CHANGES CAN BE MADE TO THE BILL TO SOFTEN OPPOSITION TO IT IN ADDITION TO THE BLACK CAUCUS A RANGE OF OTHERS INCLUDING THE AMERICAN BAR ASSOCIATION THE AMERICAN CIVIL LIBERTIES UNION THE NATIONAL CONFERENCE OF STATE LEGISLATORS AND MANY FEDERAL JUDGES AND PROSECUTORS OPPOSE STRINGENT SENTENCING PROVISIONS IN THE BILL OTHER LESS CONTROVERSIAL PROVISIONS IN THE 223 BILLION LEGISLATION INCLUDE AUTHORIZATION FOR 100000 ADDITIONAL POLICE OFFICERS DRUG TREATMENT AND OTHER CRIMEPREVENTION PROGRAMS SOME BLACK LEADERS SUCH AS THE LEADERSHIP OF THE NATION OF ISLAM HAVE LONG SPOKEN OUT AGAINST CRIME AND FOR THE KIND OF VALUES THAT MAKE IT UNACCEPTABLE BUT THE MAINSTREAM CIVILRIGHTS LEADERSHIP GENERALLY AVOIDED THE RHETORIC OF LAW AND ORDER REGARDING IT AS A CODE FOR KEEPING BLACKS BACK LAW AND ORDER DIDN'T MEAN JUSTICE MR JACKSON USED TO SAY BUT JUST US IN THE PAST MANY WERE HESITANT TO SPEAK ABOUT CRIME IN PUBLIC BECAUSE THE LARGER COMMUNITY WOULD TALK ABOUT 'LOCK THEM UP AND THROW THE KEY AWAY' AND HIDE BEHIND BLACK LEADERS IN DOING IT EXPLAINS REP CRAIG WASHINGTON THE HOUSTON DEMOCRAT WHO LED THE CAUCUS HEARING NOW THERE IS ESCALATING DISCOURSE WITHIN THE BLACK COMMUNITY ABOUT WHAT IT CAN AND MUST DO TO STOP CRIME JUST AFTER THE NEW YEAR MR JACKSON HELD THE FIRST OF SEVERAL CONFERENCES FOCUSING ON JUST THAT THE PREMIER CIVILRIGHTS ISSUE OF THIS DAY IS YOUTH VIOLENCE IN GENERAL AND BLACKONBLACK VIOLENCE IN PARTICULAR HE HAS SAID HIS CONFERENCE ALSO NOTED THE STRUCTURAL CONDITIONS THAT ENCOURAGE CRIME THE SORRY STATE OF THE BLACK ECONOMY HIGH UNEMPLOYMENT POOR EDUCATION AND A LEGACY OF RACISM THE BLACK LEADERS RECOGNIZE THAT IF THEY DON'T STEP OUT FRONT AND ENGAGE IN THE DISCUSSION THAT BASICALLY OUR YOUNG PEOPLE ARE TURNING THEMSELVES INTO SLAVES SAYS REP WASHINGTON WITHIN THE BLACK COMMUNITY THERE IS MORE PUBLIC CONCERN AND DEBATE ABOUT THE APPROPRIATE LEVEL OF RESPONSE TO INCREASING CRIME AND VIOLENCE MANY OF THE BLACK LEADERS INVOLVED IN THE GROWING DEBATE RETAIN STRONG OBJECTIONS TO THE SENATE BILL WITH ITS LARGE NUMBER OF MANDATORY MINIMUM SENTENCES DEATH PENALTIES AND FEDERALIZATION OF LOCAL CRIMES ONE OF THE SENATE MEASURES STRONGLY OPPOSED BY MOST MEMBERS OF THE BLACK CAUCUS HAS AS ITS AUTHOR ONE OF ITS OWN ILLINOIS DEMOCRATIC SEN CAROL MOSELEYBRAUN HER AMENDMENT WOULD RESTRICT PROSECUTORIAL DISCRETION A POINT OPPOSED BY ATTORNEY GENERAL JANET RENO BY DIRECTING US ATTORNEYS TO PROSECUTE AS ADULTS 13YEAROLDS CHARGED WITH COMMITTING VIOLENT CRIMES WITH FIREARMS THE PROVISION WOULD FEDERALIZE MANY CRIMES CURRENTLY PROSECUTED BY THE STATES YET NOTES FEDERAL JUDGE MARYANNE TRUMP BARRY OF NEWARK NJ WHO IS CHAIRWOMAN OF THE CRIMINAL LAW COMMITTEE OF THE JUDICIAL CONFERENCE OF THE US THERE IS NO FEDERAL JUVENILE JUSTICE SYSTEM TO HANDLE SUCH CASES NO FEDERAL JUVENILE PRISONS FOR INSTANCE AND NO FEDERAL YOUTH PROBATION OFFICERS THE NATIONAL CONFERENCE OF STATE LEGISLATURES IS SO OPPOSED TO THE FEDERALIZATION OF STATE CRIMES ANOTHER PROVISION IN THE BILL PUSHED BY GOP SEN ALFONSE D'AMATO OF NEW YORK WOULD FEDERALIZE ALL VIOLENT HANDGUN CRIMES THAT IT RECENTLY WROTE PRESIDENT CLINTON TO SAY THE SENATE BILL IS INIMICAL TO PRINCIPLES OF FEDERALISM AND WE MUST OPPOSE IT AND A MEASURE THAT WOULD REQUIRE STATES TO ADOPT CERTAIN FEDERAL SENTENCING GUIDELINES SUCH AS MANDATORY MINIMUM SENTENCES TO GET FEDERAL PRISON BUILDING FUNDS IS COERCIVE POLICY COMPLAINS JON FELDE NCSL'S GENERAL COUNSEL THERE ARE NUMEROUS MANDATORY MINIMUM PROVISIONS IN THE LEGISLATION THAT MR WASHINGTON FEARS COULD BE USED IN AN UNFAIR FASHION AGAINST BLACKS WHO MAY BE CHARGED MORE HARSHLY THAN WHITES FOR SIMILAR ACTS AND FEDERAL JUDGES HAVE CONSISTENTLY VEHEMENTLY AND VIRTUALLY UNANIMOUSLY OPPOSED MANDATORY MINIMUM SENTENCES JUDGE BARRY WROTE TO SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN DEMOCRAT OF DELAWARE IN NOVEMBER OTHER MEASURES THAT CAUCUS MEMBERS SAY COULD BE USED IN A DISCRIMINATORY WAY ARE THOSE THAT WOULD MAKE IT A FEDERAL CRIME TO CONSPIRE TO PARTICIPATE IN A CRIMINAL STREET GANG AND THAT PROVIDES THE DEATH PENALTY FOR DRUG KINGPINS EVEN IF NO DEATH CAN BE SHOWN TO HAVE RESULTED DIRECTLY FROM THEIR ILLEGAL ACTIVITY THE JUSTICE DEPARTMENT HAS WARNED CONGRESS THAT IT THINKS THE DRUGKINGPIN PROVISION IS UNCONSTITUTIONAL THE ANTIGANG MEASURE WILL ALSO BE HIT ON CONSTITUTIONAL GROUNDS IN THE HOUSE BUT SEN BIDEN INSISTS THAT THE FINAL LEGISLATION WILL INCLUDE ENOUGH SIGNIFICANT PREVENTION AND PUNISHMENT PROVISIONS THAT LIBERALS AND CONSERVATIVES ALIKE WILL BE ABLE TO ENDORSE IT AFTER ALL HE SAYS EVERYBODY IS KIND OF SINGING FROM THE SAME HYMNAL ON THE BROAD STROKES 9401270104 940127 CHEMICAL FIRMS' RESULTS MIXED IN 4TH QUARTER BUT OPERATING NET OF OLIN DUPONT AND CARBIDE SHOWED IMPROVEMENT BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THREE MAJOR CHEMICAL MAKERS HAD MIXED RESULTS IN THEIR FOURTHQUARTER BOTTOM LINES BUT OPERATING EARNINGS AT ALL THREE SHOWED MARKED IMPROVEMENT FROM THE GENERALLY WEAK YEAREARLIER PERIOD THE STRENGTHENING US ECONOMY AND EARLIER BELTTIGHTENING EFFORTS UNDERTAKEN IN RESPONSE TO THE INDUSTRY'S PROTRACTED WEAKNESS HELPED OFFSET CONTINUED LOW PRICES FOR MANY COMMODITY CHEMICALS DUPONT CO THE NATION'S BIGGEST CHEMICAL MAKER HAD ITS UNDERLYING PROFITABILITY IMPROVE SHARPLY EXCLUDING NONRECURRING ITEMS EARNINGS MORE THAN TRIPLED TO 329 MILLION OR 48 CENTS A SHARE FROM THE YEAREARLIER QUARTER'S 97 MILLION OR 14 CENTS A SHARE SALES INCHED UP TO 925 BILLION FROM 916 BILLION THE YEAREARLIER QUARTER'S NET INCOME WAS WRACKED BY A 327 MILLION RESTRUCTURING CHARGE IN THE LATEST PERIOD THE WILMINGTON DEL CONCERN TOOK A 144 MILLION CHARGE TO BOLSTER LEGAL RESERVES RELATING TO LIABILITY CLAIMS STEMMING FROM ITS BENLATE DF FUNGICIDE THAT WAS PARTIALLY OFFSET HOWEVER BY THE 52 MILLION GAIN DUPONT RECORDED FROM THE SALE OF ITS REMINGTON ARMS UNIT AND OF ITS DUPONT CANADA'S UNIT'S POLYETHYLENE BUSINESS DUPONT'S EFFORT TO CUT OPERATING COSTS WHICH HAS BOOSTED PROFIT MARGINS IN RECENT QUARTERS SHOWED MOST CLEARLY IN THE LATEST PERIOD THE COMPANY SAID ITS CONOCO ENERGY UNIT SAW OPERATING EARNINGS JUMP TO 163 MILLION FROM 94 MILLION DESPITE A DECLINE IN OIL PRICES LARGELY ON THE STRENGTH OF EARLIER COSTCUTTING MOVES BUT DUPONT NOTED THAT THERE'S A LAG BETWEEN THE TIME OIL PRICES FALL AND WHEN THE IMPACT SHOWS UP IN THE COMPANY'S RESULTS IF OIL PRICES STAY SOFT THE COMPANY SAID IT WOULD EXPECT THE EFFECTS TO SHOW UP IN CONOCO RESULTS BEGINNING IN 1994'S FIRST QUARTER THE COMPANY'S CHEMICALS OPERATION SAW ITS OPERATING PROFIT INCREASE TO 76 MILLION FROM 51 MILLION ALSO MAINLY ON THE STRENGTH OF EARLIER COSTCUTTING OPERATING PROFIT DOUBLED AT ITS BIG FIBERS UNIT TO 104 MILLION ALTHOUGH PRICING REMAINS UNDER PRESSURE IN EUROPE WHERE THE ECONOMY'S WEAKNESS HAS BEEN HURTING MOST CHEMICAL MAKERS FOR MORE THAN A YEAR OPERATING PROFIT PICKED UP FROM THE YEAREARLIER QUARTER AND THE COMPANY SAID WE APPEAR TO BE SEEING AT LEAST A BOTTOMING OF THE ECONOMIC PROBLEMS IN THE REGION AT UNION CARBIDE CORP SALES FELL 96 TO 107 BILLION FROM 119 BILLION BUT EARNINGS AT THE DANBURY CONN COMPANY BENEFITED FROM OUR COSTREDUCTION EFFORTS DESPITE THE CONTINUED WORLDWIDE DOWNTURN IN THE CHEMICAL INDUSTRY ACCORDING TO CHAIRMAN ROBERT D KENNEDY A CHARGE AND A GAIN IN THE LATEST PERIOD COMBINED TO INCREASE EARNINGS BY 1 MILLION IN THE YEAREARLIER QUARTER A HOST OF ITEMS BOOSTED EARNINGS BY ABOUT 7 MILLION PERSHARE FIGURES REFLECT AN INCREASE IN SHARES OUTSTANDING TO 1548 MILLION IN THE LATEST PERIOD FROM 1353 MILLION WHILE ALREADYSOFT PRICING FOR SOME OF ITS COMMODITY CHEMICALS SUCH AS POLYETHYLENE WEAKENED FURTHER DURING THE PERIOD CHEAPER PRICES FOR PETROLEUMBASED FEEDSTOCKS OR RAW MATERIALS HELPED AMELIORATE THE DECLINE INTEREST EXPENSE FELL BY 10 MILLION OR 43 AS A RESULT OF REFINANCING AND EARLIER DIVESTITURES AND THE COMPANY IS THOUGHT TO BE ALSO BENEFITING FROM INCREASED TECHNOLOGYLICENSING FEES ALTHOUGH CARBIDE DOESN'T MAKE THOSE FIGURES AVAILABLE AT OLIN CORP THE LATEST QUARTER OF THE STAMFORD CONN CHEMICAL DEFENSE AND AEROSPACE CONCERN WAS MARRED BY A 1317 MILLION CHARGE LINKED TO AN EARLIERANNOUNCED EFFORT TO PARE OPERATING COSTS THROUGH STAFF CUTS AND CONSOLIDATIONS SALES ROSE 83 TO 5984 MILLION FROM 5523 MILLION WITHOUT THE CHARGE THE COMPANY SAID EARNINGS WOULD HAVE SHOWN A MODEST INCREASE TO 9 MILLION IN THE LATEST PERIOD FROM 34 MILLION OLIN'S CHEMICALS OPERATION HOWEVER HAD AN OPERATING LOSS OF 28 MILLION COMPARED WITH A BREAKEVEN PERFORMANCE IN THE YEAREARLIER PERIOD AS PRICING PRESSURE HURT PROFITS AT ITS CHLORALKALI BUSINESS THE SEGMENT'S OPERATING DEFICIT CAME DESPITE A 19 INCREASE IN SALES TO 2554 MILLION OLIN'S METALS SEGMENT AND ITS DEFENSE AND AMMUNITION OPERATION SHOWED HIGHER OPERATING EARNINGS DESPITE MODEST SALES DOWNTURNS 9401270103 940127 INSURANCE INSTITUTE FINDS ANTILOCK BRAKES DON'T REDUCE CLAIMS DETROIT ANTILOCK BRAKES TOUTED BY CAR COMPANIES AS A GIANT ADVANCE IN AUTO SAFETY TECHNOLOGY HAVE NOT REDUCED THE NUMBER OF ACCIDENTS ON US ROADS ACCORDING TO A STUDY BY THE HIGHWAY LOSS DATA INSTITUTE THE NONPROFIT INSURANCE GROUP SAID THERE'S NOTHING WRONG WITH THE BRAKES WHICH PREVENT WHEELS FROM LOCKING DURING EMERGENCY BRAKING RATHER MANY MOTORISTS DON'T USE THE ANTILOCK BRAKES PROPERLY SAID BRIAN O'NEILL INSTITUTE PRESIDENT HE SAID ANTILOCK BRAKES SHOULD NEVER BE PUMPED AS DRIVERS ARE TAUGHT TO DO WITH CONVENTIONAL BRAKES MR O'NEILL SAID CAR COMPANIES ALSO MAY BE OVERSELLING THE ADVANTAGES OF ANTILOCK BRAKES FOR INSTANCE MANY ADVERTISEMENTS FOR THE MECHANISM DON'T MAKE CLEAR THAT THEIR PRIMARY ADVANTAGE IS ON WET AND SLIPPERY ROADS MR O'NEILL SAID THE INSTITUTE'S STUDY COMPARED INSURANCE LOSSES FOR CARS WITH ANTILOCK BRAKES AND LOSSES FOR THE SAME CARS WITHOUT THEM WE FIND NO REDUCTION IN CLAIM FREQUENCIES OR AVERAGE AMOUNTS OF INSURANCE PAYMENTS UNDER EITHER COLLISION OR PROPERTY DAMAGE LIABILITY COVERAGES SAID KIM L HAZELBAKER SENIOR VICE PRESIDENT OF THE INSTITUTE ANTILOCK BRAKES CAN PREVENT WHEELS FROM LOCKING REDUCE STOPPING DISTANCES AND IMPROVE DRIVER CONTROL DURING EMERGENCY BRAKING ESPECIALLY ON SLIPPERY PAVEMENT WITH ANTILOCK BRAKES WHEN ANY WHEEL IS ABOUT TO LOCK THE BRAKE PRESSURE IS REDUCED ENOUGH FOR THE WHEELS TO START ROTATING AGAIN 9401270102 940127 CONTINENTAL CAN CEO BAINTON IS CHARGED IN INSIDER TRADING CASE WASHINGTON THE CHIEF EXECUTIVE OFFICER OF CONTINENTAL CAN CO DONALD J BAINTON WAS CHARGED UNDER INSIDERTRADING LAWS WITH ALLEGEDLY GIVING NONPUBLIC INFORMATION ON THE COMPANY TO A FRIEND THE SECURITIES AND EXCHANGE COMMISSION IN A COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN ALLEGED THAT MR BAINTON IN MARCH 1992 TIPPED JOHN R CURTIN A FRIEND AND PRESIDENT OF CLOSELY HELD WFF INTERNATIONAL INC THAT CONTINENTAL CAN THEN KNOWN AS VIATECH INC WAS ABOUT TO REPORT POOR YEAREND RESULTS MR CURTIN SOLD ALL OF HIS STOCK IN THE COMPANY THE SEC SAID FOR 36625 A SHARE OR ABOUT 181000 VIATECH'S STOCK FELL TO A 52WEEK LOW AFTER THE ANNOUNCEMENT AND MR CURTIN AVOIDED 58750 IN LOSSES THE SEC SAID ABDO YAZGI EXECUTIVE VICE PRESIDENT OF CONTINENTAL CAN SAID MR BAINTON CATEGORICALLY DENIES THAT HE DISCLOSED INSIDER INFORMATION OR TIPPED MR CURTIN OFF MR BAINTON AND HIS FAMILY OWN ABOUT 25 OF THE COMPANY'S SHARES OUTSTANDING MR BAINTON WAS PREVIOUSLY PRESIDENT OF CONTINENTAL CAN GROUP BEFORE IT WAS ACQUIRED IN 1984 BY PETER KIEWIT SONS INC OF OMAHA NEB HE LED AN EFFORT TO REMAKE VIATECH THROUGH SEVERAL ACQUISITIONS AND BY ADOPTING THE OLD CONTINENTAL CAN NAME FOR THE COMPANY THE SEC IS SEEKING INJUNCTIONS AGAINST BOTH MR BAINTON AND MR CURTIN AND CIVIL PENALTIES FROM EACH THE SEC SAID IT ALSO IS SEEKING DISGORGEMENT OF THE 58750 LOSS AVOIDED BY MR CURTIN MR YAZGI OF CONTINENTAL CAN SAID THAT MR BAINTON IS CONFIDENT HE WILL BE VINDICATED IN COURT THROUGH A SPOKESMAN MR CURTIN DENIED THE SEC'S CHARGES 9401270101 940127 AUTO CHRYSLER MOUNTS CAMPAIGN TO CUT DEFECTS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL AS CHRYSLER RACKS UP A STRING OF PROFITABLE QUARTERS AND NEWPRODUCT LAUNCHES ONE FACT HAS ALMOST BEEN LOST THE NO 3 AUTO MAKER HAS THE WORST QUALITY RECORD OF DETROIT'S BIG THREE AS DETERMINED BY JD POWER & ASSOCIATES' ANNUAL INITIAL QUALITY SURVEY AND AS DETERMINED BY ANDREA SMITH A 33YEAROLD MANAGER AT BORDER'S BOOKSTORES IN ANN ARBOR MICH WHEN IT WAS NEW MS SMITH'S 1988 PLYMOUTH SUNDANCE STALLED ON THE HIGHWAY AND THE ENGINE OF THE SUNDANCE MADE BY CHRYSLER CORP QUIT THREE OR FOUR MORE TIMES BEFORE SHE SOLD THE CAR THIS YEAR AND BOUGHT A HONDA CIVIC CHRYSLER'S NEW NEON IS SIMILAR TO THE FOURDOOR CIVIC BUT COSTS ABOUT 1600 LESS BUT MS SMITH DIDN'T EVEN LOOK AT THE NEON WHEN SHE WENT SHOPPING FOR A NEW CAR I THOUGHT ABOUT THE NEON FOR A HOT SECOND SHE SAYS BUT THEN I REALIZED I COULDN'T CARE LESS ABOUT THE PRICE UNLESS THEY'RE GIVING IT AWAY FOR FREE I'M INTERESTED IN A GOOD CAR THIS DEVASTATING ASSESSMENT COMES AT A CRUCIAL TIME FOR CHRYSLER WHICH IS TRYING TO CHANGE ITS IMAGE FROM A BUILDER OF CLUNKY KCARS SUCH AS THE PLYMOUTH RELIANT TO AS CHAIRMAN ROBERT J EATON PUTS IT THE WORLD'S PREMIER AUTO COMPANY THE COMPANY ALSO IS ATTEMPTING TO ENTICE MORE BUYERS OF JAPANESE CARS INTO ITS DEALERSHIPS THIS YEAR AS IT LAUNCHES FIRST THE NEON A CAR AIMED SQUARELY AT THE CIVIC AND THEN THE CIRRUS AND STRATUS WHICH ARE HONDA ACCORD FIGHTERS TO WIN BUYERS AWAY FROM HONDA AND TOYOTA CHRYSLER HAS MADE AN ALLOUT EFFORT TO MAKE CERTAIN THAT THE NEON LAUNCH IS AS FLAWLESS AS POSSIBLE THE COMPANY HAS FORCED SUPPLIERS TO EXPLAIN PRECISELY HOW THEY WILL ENSURE DELIVERY OF FLAWLESS PARTS EVEN SO CHRYSLER LAST WEEK DISCOVERED THAT A LEAKY SEAL IN 1100 OF THE 10000 NEONS BUILT SO FAR COULD LEAD TO BRAKE LOSS CHRYSLER AND ALLIEDSIGNAL INC'S AUTOMOTIVE DIVISION SUPPLIER OF THE BRAKES ARE NOW FIXING THE CARS INCLUDING SOME 60 ALREADY IN CUSTOMER HANDS JD POWER TRACKS INITIAL DEFECTS ON CARS FLAWS RANGING FROM A LOOSE KNOB TO AN ENGINE THAT WON'T START THE FIRM WHICH DEPENDS ON AUTO MAKERS FOR ITS REVENUES WON'T RELEASE THE NAMES OF CAR COMPANIES THAT PERFORM WORSE THAN THE INDUSTRY AVERAGE 107 DEFECTS PER CAR IN ITS LAST SURVEY BUT THE NUMBERS ARE WIDELY AVAILABLE WITHIN THE INDUSTRY AND THEY SHOW THAT ON AVERAGE CHRYSLER VEHICLES HAVE 135 DEFECTS PER CAR DODGE CHRYSLER'S VOLUME BRAND HAS 148 DEFECTS PER CAR TWICE TOYOTA'S 074 DEFECT RATE BIG THREE CARS AND TRUCKS AS A GROUP HAVE MORE DEFECTS THAN THE BEST OF THE JAPANESE TOYOTA MOTOR CORP AND HONDA MOTOR CO THAT IS ONE REASON WHY EVEN AS JAPANESE CARS BECAME MORE EXPENSIVE LAST YEAR AS THE YEN ROSE IN VALUE CONSUMERS STILL BOUGHT PLENTY OF JAPANESE CARS TOGETHER CHRYSLER FORD MOTOR CO AND GENERAL MOTORS CORP GAINED ONLY 15 POINTS OF MARKET SHARE DESPITE A 2000 TO 3000 PRICE ADVANTAGE BUT CHRYSLER IS TRYING WITH CONSIDERABLE URGENCY TO ENSURE THAT ITS NEWEST PRODUCTS PERFORM BETTER THAN SOME OF ITS RECENT LAUNCHES INCLUDING THE CHRYSLER CONCORDE AND THE JEEP GRAND CHEROKEE BOTH THE CONCORDE AND THE CHEROKEE WERE DESIGNED FOR A LOW DEFECT RATE CHRYSLER SAYS THEY ARE RELATIVELY SIMPLE TO BUILD AND CHRYSLER SAYS THAT A TEAMWORK APPROACH TO THE NEW VEHICLES MEANT THAT WORKERS AND SUPPLIERS HELPED ENGINEERS ANTICIPATE PROBLEMS BUT AFTER THE CONCORDE LAUNCH IN 1992 CHRYSLER ANNOUNCED TWO SEPARATE RECALLS ONE WAS TO FIX A DEFECTIVE WASHER THAT COULD AFFECT STEERING THEN THERE WAS AN ENGINE PART THAT COULD CAUSE PISTON WEAR LAST APRIL CHRYSLER ANNOUNCED TWO GRAND CHEROKEE RECALLS AFFECTING 65 OF THE VEHICLES IT HAD BUILT SO FAR THE JEEPS HAD PROBLEMS WITH THE REAR TAILGATE LATCH MECHANISM AND WITH FRONT SUSPENSIONS THE GRAND CHEROKEE'S POWER QUALITY RATING IS BELOW THAT OF THE FORD EXPLORER AND CAME IN AT TWICE THE DEFECT RATE OF A COMPARABLE TOYOTA THE 4RUNNER BUT CHRYSLER ARGUES THAT ITS NEW VEHICLES ARE EXTRAORDINARILY POPULAR WITH THOSE WHO BUY THEM AND THAT THE JD POWER QUALITY RATING DOESN'T ADEQUATELY REFLECT THIS STRONG CUSTOMER ENTHUSIASM CHRYSLER'S PRESIDENT ROBERT A LUTZ SAYS FURTHER THAT THE AUTO MAKERS GIVE THE CUSTOMERS HIGHER QUALITY THAN THEY DEMAND IN THE OLD DAYS HE SAYS THE BIG THREE WERE FOUR TIMES AS BAD AS THE JAPANESE IT WAS EIGHT AMERICAN DEFECTS TO TWO JAPANESE DEFECTS PER CAR BUT NOW THAT EVERYONE IS AROUND ONE IT JUST DOESN'T MATTER HE MAY BE RIGHT CONSUMER REPORTS A FREQUENT CRITIC OF THE BIG THREE RECENTLY NAMED THE DODGE INTREPID ES THE CONCORDE'S MECHANICAL TWIN THE BEST FAMILY SEDAN IN THE US THE FIRST TIME IN A DOZEN YEARS THAT THE MAGAZINE PICKED A BIG THREE PRODUCT OVER A JAPANESE CAR AND IT SAID ITS OWNER SURVEY INDICATES THE CAR'S RELIABILITY IS BETTER THAN AVERAGE BUT INTERNALLY CHRYSLER IS FAR FROM SATISFIED WITH ITS QUALITY RATINGS IN ADDITION TO ITS NEW DEMANDS ON SUPPLIERS IT IS BUILDING PROTOTYPES EARLIER WITH THE NEON FOR EXAMPLE IT BUILT A PRECISE VERSION OF THE CAR A YEAR BEFORE LAUNCH AND FLEW SOME 1500 WORKERS FROM ILLINOIS TO A PROTOTYPE ASSEMBLY PLANT IN MICHIGAN WORKERS THERE COOPERATED WITH ENGINEERS TO PERFECT THE VEHICLES AND THE ASSEMBLY PROCESS WITH THE GOAL OF MAKING BOTH AS SIMPLE AS POSSIBLE THE COMPANY ALSO HAS BEGUN TO TEST DRIVE EVERY SINGLE VEHICLE THAT ROLLS OFF THE PRODUCTION LINE MR EATON CHRYSLER'S CHAIRMAN HAS MADE QUALITY IMPROVEMENT A TOP PRIORITY IN LATE 1992 TO IMPROVE CONSISTENCY HE CHANGED THE WAY VEHICLE AUDITS WERE CONDUCTED AT CHRYSLER HE ALSO HAS STRETCHED THE TIME CHRYSLER SPENDS TO LAUNCH A VEHICLE TO ALLOW MORE TIME TO CORRECT QUALITY PROBLEMS AND HE APPOINTED THOMAS W SIDLICK TO THE NEWLY CREATED POST OF VICE PRESIDENT CUSTOMER SATISFACTION AND VEHICLE QUALITY AT CHRYSLER'S BELVIDERE ILL PLANT WHERE THE NEON IS PRODUCED THE GOAL IS TO PUT THE NEON ON JD POWER'S TOP10 LIST OF THE MOST DEFECTFREE CARS EVERY 20 YARDS OR SO ON THE ASSEMBLY LINE IS A BULLETIN BOARD WITH CHARTS DETAILING QUALITY AUDITS PERFORMED ON THE CAR IN PRODUCING THE NEON CHRYSLER LEARNED FROM ITS PERFORMANCE ON ITS LH MIDSIZE CARS SUCH AS THE CONCORDE AND THE GRAND CHEROKEE THE INTERIORS OF EARLY LH PROTOTYPES DIDN'T PRECISELY MATCH THE FINAL CAR THAT MADE IT HARD TO CHECK HOW PARTS WOULD WORK TOGETHER INSIDE THE CAR NEON PROTOTYPES MATCHED THE FINAL VERSION BOTH INSIDE AND OUTSIDE AND THEY WERE COMPLETED ALMOST A YEAR BEFORE LAUNCH MONTHS EARLIER THAN THE LH PROTOTYPES WERE EMPLOYEES DROVE 50 EARLY NEONS 16 HOURS A DAY IN AN ATTEMPT TO UNCOVER DEFECTS BEFORE THE CUSTOMER DID AND CHRYSLER DEMANDED THAT SUPPLIERS INSTITUTE RIGOROUS QUALITYCONTROL CHECKS BUT DESPITE ALL THE PRECAUTIONS PROBLEMS CROPPED UP CHRYSLER STOPPED ADDING ROOF RACKS ONTO NEONS AT ONE POINT BECAUSE THEY DIDN'T FIT PROPERLY THE COMPANY ALSO DISCOVERED THAT THE CAR'S PLASTIC RADIATOR SUPPORTS WOULD SNAP WHEN THE CARS WERE DRIVEN OVER BACK ROADS NEAR THE PLANT THE SUPPORTS WERE REPLACED WITH METAL PARTS AND IN OCTOBER EARLY PRODUCTION RUNS WERE SLOWED BECAUSE INTERNAL AUDITS INDICATED DEFECT RATES WERE WELL ABOVE CHRYSLER'S GOALS MR SIDLICK CONCEDES CHRYSLER HAS HAD DIFFICULTY REDUCING THE NUMBER OF DEFECTS AS QUICKLY AS IT WOULD LIKE BUT HE BELIEVES CHRYSLER WILL SHOW SUBSTANTIAL IMPROVEMENT WHEN THE NEXT SURVEY IS RELEASED THIS SPRING FORD'S BEEN DOING THIS SINCE 1979 HE SAYS WE STARTED LATE 9401270100 940127 POLITICS & PEOPLE CLINTON'S WINNING INVASION OF GOP TURF BY ALBERT HUNT THERE WAS MORE THAN A LITTLE RONALD REAGAN IN PRESIDENT CLINTON'S SPEECH TUESDAY NIGHT NOTWITHSTANDING THE PROGRAMMATIC LITANY THE PRESIDENT ARTFULLY PLAYED ON EFFECTIVE SYMBOLS WHILE SEIZING A MORAL AND SUBSTANTIVE HIGH GROUND BUT HE ALSO DID A PRETTY GOOD IMITATION OF ANOTHER FAMOUS REPUBLICAN GEN DOUGLAS MACARTHUR WHEN HE SCORED HIS LEGENDARY SUCCESS AT INCHON BY BOLDLY STRIKING BEHIND ENEMY LINES LIKE THE NORTH KOREANS FOUR DECADES AGO BOB DOLE AND THE GOP THIS WEEK WERE SURPRISED THEY RESPONDED MORE TO WHAT THEY ANTICIPATED THAN TO WHAT ACTUALLY TRANSPIRED FROM CRIME TO WELFARE TO PERSONAL RESPONSIBILITIES BILL CLINTON OCCUPIED WHAT REPUBLICANS THOUGHT WAS THEIR TURF MUCH OF THE SECTION ON VALUES GOVERNMENTS DON'T RAISE CHILDREN PARENTS DO COULD HAVE BEEN DELIVERED BY BILL BENNETT AT THE SAME TIME HE SKILLFULLY MIXED IN ENOUGH POPULISM WE NEED TO GIVE EVERY HARDWORKING TAXPAYING AMERICAN THE SAME HEALTH CARE SECURITY THAT THEY ALREADY GIVE US TO KEEP CRITICS OFF GUARD REPUBLICANS COMPLAINED HE WAS STEALING THEIR THUNDER SURE HE WAS THAT'S A LOT SMARTER THAN CEDING THOSE ISSUES WHICH IS WHAT DEMOCRATS USED TO DO THE 63MINUTE SPEECH WAS TOO LONG AN ENDEMIC CLINTON AFFLICTION BUT THE PRESIDENT NEVERTHELESS MASTERFULLY ACCOMPLISHED EXACTLY WHAT A STATE OF THE UNION IS SUPPOSED TO ACHIEVE IT SET THE AGENDA FOR THE POLITICAL BATTLES AHEAD MR CLINTON PROBABLY DID AS CRITICS COMPLAIN CLAIM MORE CREDIT FOR THE IMPROVING ECONOMY THAN HE DESERVED BUT THESE BORNAGAIN VIRGINS HAVE A SHORT MEMORY DID RONALD REAGAN CREDIT THE OIL SHEIKS FOR FALLING OIL PRICES OR PAUL VOLCKER FOR TAMING INFLATION OR DID GEORGE BUSH SAY IT WAS MERELY COINCIDENCE THAT THE FALL OF THE BERLIN WALL HAPPENED ON HIS WATCH MOREOVER LAST YEAR'S CLINTONENGINEERED BUDGET DEAL WAS A FACTOR IN LOWER INTEREST RATES AND THE RISE IN CONSUMER CONFIDENCE THEN THERE'S THE CARPING THAT THE PRESIDENT'S EMPHASIS ON INDIVIDUAL RESPONSIBILITY AND VALUES WAS MERE RHETORIC THE PRESIDENCY FRANKLIN ROOSEVELT TAUGHT US IS PREEMINENTLY A PLACE OF MORAL LEADERSHIP ALSO ENCOURAGING IS THE WAY THIS SPEECH WAS STITCHED TOGETHER IN CONTRAST TO LAST FEBRUARY WHEN A GRUMBLING PRESIDENT WITH A MAGIC MARKER WAS RIPPING UP HIS FIRST STATE OF THE UNION ADDRESS IN THE ROOSEVELT ROOM ONLY HOURS BEFORE DELIVERY THIS TIME THE STRUCTURE AND CONTENT WERE SIMILAR TO THE INITIAL DRAFT COMPLETED JAN 8 BY SPEECHWRITER DAVID DREYER AS WELL AS TOUCHING THE USUAL POLITICAL BASES THE WHITE HOUSE ALSO REACHED OUT FOR IDEAS FROM A HANDFUL OF BIG THINKERS SUCH AS YALE LAW SCHOOL PROF STEPHEN CARTER AND MICHAEL SANDEL A PROFESSOR OF GOVERNMENT AT HARVARD NOW IT REMAINS TO BE SEEN WHETHER THE ADMINISTRATION WILL RETREAT AND ALLOW THE OPPOSITION TO DOMINATE THE DIALOGUE THE WAY IT DID LAST YEAR OR INSTEAD WILL FOLLOW THROUGH THE PRESIDENT FOR EXAMPLE WAS SMART TO DECLARE THAT HEALTH CARE AND WELFARE LEGISLATION BOTH SHOULD BE ACTED ON THIS YEAR BUT IT WILL TAKE CONSIDERABLE SKILL TO HAVE THEM REINFORCE ONE ANOTHER AND NOT THREATEN THE NECESSARY COALITION FOR EITHER THE ADMINISTRATION CONTENDS THAT THE HEALTH CARE ISSUES NOW ARE MERE DETAILS YET EVEN MANY OF THE ADMINISTRATION'S OWN ECONOMISTS WORRY WHETHER THE ECONOMICS ARE REALISTIC THERE ARE POLITICAL PROBLEMS PRIVATELY ADMINISTRATION STRATEGISTS CLEARLY ARE WORRIED THAT HILLARY CLINTON WHOSE LEADERSHIP IS CRITICAL COULD BE SIDETRACKED OR EVEN CRIPPLED BY THE WHITEWATER INVESTIGATION EQUALLY TROUBLING WOULD BE AN INDICTMENT OF DAN ROSTENKOWSKI THE INFLUENTIAL WAYS AND MEANS COMMITTEE CHAIRMAN EVEN WITH MR ROSTENKOWSKI THE ADMINISTRATION HAS TO DO A MUCH BETTER JOB OF WINNING SUPPORT FROM THE TWOTHIRDS OF SMALL BUSINESSES THAT ALREADY PROVIDE HEALTH COVERAGE BUT THE PRESIDENT BRINGS CHIPS TO THE TABLE TOO SUPPORT FOR THE CLINTON PROPOSAL IS TEPID BUT THE PUBLIC SHOWS EVEN LESS APPETITE FOR THE ALTERNATIVES ALL OF WHICH HAVE THEIR OWN PROBLEMS ONE EXAMPLE THE CONSERVATIVE DEMOCRATIC PLAN THE COOPERBREAUX BILL IS A FAVORITE OF LARGE INSURANCE AND HEALTH CARE INTERESTS BUT IT ACTUALLY WOULD LIMIT CONSUMERS' ABILITY TO CHOOSE THEIR OWN DOCTOR FAR MORE THAN THE CLINTON PLAN WOULD FURTHER THE INSIDETHEBELTWAY CONVENTIONAL WISDOM TODAY THAT THE CLAMOR FOR A SWEEPING HEALTH CARE MEASURE IS SUBSIDING DOESN'T SQUARE WITH THE FACTS BY AN OVERWHELMING 68 TO 27 THE PUBLIC IN LAST WEEK'S WALL STREET JOURNAL/NBC NEWS POLL DECLARED IT'S NOT POSSIBLE TO ADDRESS HEALTH CARE PROBLEMS WITHOUT A COMPLETE OVERHAUL OF THE CURRENT SYSTEM GEE I SURE HOPE THAT MORE REPUBLICANS DON'T PICK UP ON THE ARGUMENT THAT THERE'S NO HEALTH CARE CRISIS VICE PRESIDENT ALBERT GORE CRACKED IN ONE OF TUESDAY'S BRIEFINGS TO SPIN THE PRESS ON THE STATE OF THE UNION CHARGES THAT THE PRESIDENT WANTS TO SOCIALIZE HEALTH CARE WILL WORK ABOUT AS WELL AS THE SAME ARGUMENT DID AGAINST MEDICARE IN 1965 ON THE ECONOMY THE PRESIDENT MAINLY HOPES TO KEEP RIDING THE GOOD TIMES YET HERE TOO THERE ARE TOUGH CHALLENGES AND DECISIONS PUSHING AN OVERHAUL OF WELFARE IS GOOD POLITICS FIGURING OUT HOW TO PAY FOR IT MAY NOT BE AS IT'S CLEARLY GOING TO COST MORE IN THE SHORT RUN AND MR CLINTON STILL HASN'T DEVELOPED A CONVINCING ALTERNATIVE TO THE BALANCEDBUDGET CONSTITUTIONAL AMENDMENT CONGRESS CONSIDERS NEXT MONTH OR REALLY ADDRESSED THE ISSUE OF CURBING THE CONTINUING GROWTH IN ENTITLEMENT SPENDING ON FOREIGN POLICY MR CLINTON FINALLY SEEMS FOCUSED ON THE BIG ISSUES RUSSIA CHINA JAPAN THE MIDDLE EAST THE FUTURE OF NATO AND EXPANDING COMMERCE WITH LATIN AMERICA INSTEAD OF THE SOMALIAS AND HAITIS THE PRESIDENT'S INSISTENCE TUESDAY NIGHT THAT DEFENSE COULDN'T BE CUT ANY FURTHER SEEMED TO SIGNAL A NEW SERIOUSNESS ABOUT NATIONAL SECURITY TO AT LEAST ONE CAREFUL REPUBLICAN OBSERVER VICE PRESIDENT GORE WILL HAVE TO PLAY A MORE VISIBLE ROLE IN FOREIGN POLICY BUT THE PRESIDENT ALSO HAS TO LEVEL MORE WITH THE PUBLIC FOR STARTERS HE SHOULD QUIT MISLEADING PEOPLE ON HOW SUCCESSFUL HIS RUSSIAN POLICY HAS BEEN LIKEWISE WHILE MOST VOTERS HAVE LITTLE INTEREST IN FOREIGN POLICY THESE DAYS THEY THINK IT'S NOT TOO MUCH TO EXPECT COMPETENCE IN 1993 THE CLINTON FOREIGN POLICY DECISIONMAKING TOO OFTEN RESEMBLED A CROSS BETWEEN A GRADUATE SCHOOL SEMINAR AND A FRATERNITY HOUSE BULL SESSION THAT HAS TO CHANGE AFTER A YEAR IN OFFICE BILL CLINTON FACES A SITUATION ALMOST THE EXACT OPPOSITE OF RONALD REAGAN'S AFTER ONE YEAR MUCH OF THE PUBLIC IS PRETTY SATISFIED WITH HIS POLICIES BUT HARBORS RESERVATIONS ABOUT HIM PERSONALLY THAT PROBLEM WON'T SUBSIDE EASILY BUT AT THE START OF YEAR TWO TUESDAY NIGHT THE PRESIDENT CLEARLY CONNECTED WITH THE AMERICAN PEOPLE AND THAT'S A GOOD START 9401270099 940127 SCOTT PAPER SETS PLAN TO CUT 25 OF WORK FORCE CHARGE TOTALING 381 MILLION IS TAKEN RESTRUCTURING TO BRING PLANT CLOSINGS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL SCOTT PAPER CO HURT BY WORLDWIDE OVERCAPACITY IN THE PAPER INDUSTRY TOOK A FOURTHQUARTER CHARGE OF 381 MILLION FOR A SWEEPING RESTRUCTURING THAT WILL INCLUDE CUTTING 8300 JOBS OR 25 OF ITS WORK FORCE AND CLOSING SOME PLANTS ANALYSTS ESTIMATED THAT THE COMPANY WILL SAVE 300 MILLION ANNUALLY WHEN THE JOB CUTS ARE COMPLETED IN THREE YEARS AND AS MUCH AS AN ADDITIONAL 300 MILLION ANNUALLY FROM THE PLANT CLOSINGS AND CONSOLIDATIONS WHICH THE COMPANY SAID WILL INCLUDE IDLING SOME TISSUEPAPER AND COATEDPAPER MACHINES AND MAKING EFFICIENCY IMPROVEMENTS AT ITS PAPER AND PULP PLANTS THE MOVES WHICH WERE MORE AGGRESSIVE THAN ANALYSTS EXPECTED REPRESENT THE LAST MAJOR ACTION TO BE TAKEN BY PHILIP E LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO HAS ANNOUNCED PLANS TO RETIRE IN EARLY APRIL WE CAN NO LONGER COUNT ON IMPROVING PRICES INCREASING VOLUME OR INFLATION MR LIPPINCOTT SAID SO WE NEED TO ASSUME THAT NONE OF THAT WILL HELP US AND CONCENTRATE SOLELY ON BECOMING THE LOWESTCOST PRODUCER POSSIBLE THE NEWS SENT THE SHARES OF SCOTT UP 2125 OR 49 TO CLOSE AT A 52WEEK HIGH OF 4550 IN EXTREMELY HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BUT SOME ANALYSTS SUGGESTED THAT THE RESTRUCTURING CHARGE THE THIRD THAT SCOTT HAS TAKEN IN THE LAST FOUR YEARS AND BY FAR THE LARGEST SIGNALS THAT THE COMPANY MAY NEED TO DO MORE THEY ANNOUNCED A MUCH STRONGER MORE AGGRESSIVE PLAN THAN ANYONE THOUGHT THEY WOULD SAID MARK S ROGERS AN ANALYST WITH PRUDENTIAL SECURITIES INC AND THE MARKET'S REACTION IS A TYPICAL REACTION TO PROJECTED SAVINGS BUT I WOULD ADVISE SOME CAUTION BECAUSE THE SIZE OF THE CHARGE MAY REFLECT SOME UNDERLYING PROBLEMS THAT WON'T BE SO EASY TO SOLVE LARGELY AS A RESULT OF THE CHARGE WHICH AMOUNTED TO 515 A SHARE THE COMPANY WHICH IS BASED IN PHILADELPHIA REPORTED A NET LOSS OF 3703 MILLION OR 501 A SHARE FOR THE FOURTH QUARTER THE LOSS ALSO INCLUDED OTHER NONRECURRING CHARGES OF 141 MILLION OR 19 CENTS A SHARE AND A 96 MILLION CHARGE OR 13 CENTS A SHARE FOR EARLY RETIREMENT OF DEBT A YEAR EARLIER NET INCOME WAS 448 MILLION OR 61 CENTS A SHARE REVENUE DECLINED 58 TO 120 BILLION FROM 128 BILLION THE DEPTH OF THE JOB CUTS AND PLANT CLOSINGS REFLECT THE WORLDWIDE PAPERINDUSTRY OVERCAPACITY PROBLEMS WHICH HAVE LED TO INTENSE PRICE COMPETITION AND DEPRESSED EARNINGS SCOTT SAID IT PLANS TO SLASH 8300 JOBS IN THE NEXT THREE YEARS REDUCING ITS WORK FORCE TO 24700 THE CUTS INCLUDE 3800 IN THE US 1900 IN MEXICO AND 2600 OVERSEAS THE US CUTS WILL INCLUDE 300 AT CORPORATE OFFICES THE COMPANY WOULDN'T SPECIFY HOW MANY PLANTS WOULD BE CLOSED SAYING ONLY THAT SOME WOULD BE SHUT IT ALSO PLANS EFFICIENCY IMPROVEMENTS AT ITS PAPER AND PULP PLANTS WHICH LIKELY WILL INCLUDE PARTIAL REDUCTIONS IN PLANT CAPACITIES AND AT ITS SD WARREN PRINTINGPAPERS UNIT THE COMPANY PLANS TO IDLE TWO OF FOUR MACHINES AT ITS WESTBROOK MAINE PLANT THE COMPANY WILL ALSO CONVERT A SPANISH MILL FROM VIRGIN TO RECYCLED PULP MR LIPPINCOTT SAID THE ANNOUNCEMENT REFLECTS AN INTERNAL REVIEW PROCESS THAT BEGAN LAST MAY THE COMPANY SAID IT WILL PUT OFF FURTHER STRATEGIC DECISIONS UNTIL A NEW CHIEF EXECUTIVE IS NAMED SCOTT SAID THEY WILL SHUT DOWN AS MANY PLANTS AS THEY NEED TO IN ORDER TO SIMPLIFY THEIR OPERATIONS AND CUT COSTS SAID MATTHEW BERLER AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP MARKET SHARE AND VOLUME GAINS ARE NO LONGER THEIR FOCUS BUT INSTEAD IT HAS BECOME PRODUCTION COSTS AND EFFICIENCY THEY ARE BEGINNING TO PLAY THE GAME DIFFERENTLY THAN THE REST OF THE PAPER INDUSTRY PART OF SCOTT'S CHANGE IN STRATEGY STEMS FROM THE EXTREME PRICING PRESSURE AT ITS CORE PERSONALCARE AND CLEANINGPRODUCTS GROUP FOR 1993 SALES DECLINED TO 358 BILLION FROM 386 BILLION IN 1992 IN THE US MARKETSHARE BATTLES CONTINUE TO ERODE MARGINS SCOTT CONTINUES TO PERFORM STRONGLY WITH ITS BABY FRESH BABY WIPES BUT OTHER BUSINESSES SUCH AS FACIAL TISSUE AND TOILET PAPER HAVEN'T BEEN AS STRONG AMONG ITS BRANDED PRODUCTS SCOTT SELLS VIVA PAPER TOWELS COTONELLE TOILET PAPER AND SCOTTIES FACIAL TISSUE IN PAPER PRODUCTS PRICE WARFARE AND INTENSE COMPETITIVE CONDITIONS DOMINATE THE MARKET SAID BRUCE KIRK AN ANALYST WITH SG WARBURG & CO AT SD WARREN THE COMPANY'S PRINTINGPAPER BUSINESS SALES DECLINED TO 116 BILLION IN 1993 FROM 124 BILLION IN 1992 AS OVERCAPACITY PROBLEMS CONTINUED TO PUSH PRICES DOWN OPERATING PROFIT DECLINED TO 796 MILLION IN 1993 FROM 908 MILLION IN 1992 FOR ITS 1993 REPORTING YEAR ENDED DEC 25 SCOTT REPORTED A NET LOSS OF 277 MILLION OR 375 A SHARE COMPARED WITH NET INCOME OF 1672 MILLION OR 226 A SHARE IN 1992 REVENUE DECLINED 67 TO 475 BILLION IN FISCAL 1993 FROM 509 BILLION IN 1992 THE 1993 EARNINGS INCLUDE A 217 MILLION OR 29 CENTS A SHARE GAIN FROM CHANGES IN ACCOUNTING FOR INCOME TAXES 9401270098 940127 CLINTON HEALTH PLAN NOT CONSUMER FRIENDLY BY THOMAS C BILLET IN PROMOTING HIS PLAN TO PROVIDE EVERY CITIZEN WITH COMPREHENSIVE HEALTH BENEFITS THAT CAN NEVER BE TAKEN AWAY PRESIDENT CLINTON HAS SET OUT TO CONVINCE THE 150 MILLION AMERICANS COVERED BY EMPLOYERSPONSORED HEALTH PLANS THAT HIS PROPOSAL WILL IMPROVE THEIR COVERAGE HE HAS FOCUSED ALMOST ENTIRELY ON THE BIG PICTURE WHAT BENEFITS WOULD BE OFFERED WHAT THEY WOULD COST AND THE MIX OF TAXES AND SPENDING CUTS REQUIRED TO FINANCE THEM VERY LITTLE HAS BEEN SAID ABOUT THE DAYTODAY REALITY OF HOW MOST AMERICANS WILL CHOOSE AND USE THEIR PLANS FROM THE CONSUMER'S PERSPECTIVE HOWEVER THE VALUE OF THE PLAN DEPENDS ON ITS EASE OF USE WHEN IT IS NEEDED MOST PEOPLE SEE DOCTORS WHEN THEY ARE SICK OR HURT AT THIS STRESSFUL TIME THEY MUST UNDERSTAND NOT ONLY WHAT IS COVERED AND WHAT ISN'T BUT HOW TO USE THE PLAN DIFFICULTY IN GETTING QUESTIONS ANSWERED RIGHT AWAY CAN TURN MINOR FRUSTRATIONS INTO MAJOR GRIEVANCES WILL THE PRESIDENT'S PLAN MAKE IT EASIER OR HARDER FOR PEOPLE TO GET ACCESS TO HEALTH CARE AND USE THEIR BENEFITS AT PRESENT HEALTH INSURANCE IS AN EMPLOYEE BENEFIT WITH EMPLOYEES RECEIVING ADMINISTRATIVE SUPPORT FROM THEIR EMPLOYER IN CHOOSING MANAGING AND RESOLVING PROBLEMS WITH THEIR HEALTH COVERAGE THE COMPANY HUMANRESOURCES DEPARTMENT EVALUATES AVAILABLE HEALTH PLANS AND SELECTS THE PLAN OR PLANS MANY EMPLOYERS OFFER A CHOICE THAT PROVIDE THE BEST COVERAGE FOR THE MOST REASONABLE COST COMPANIES DO THIS BECAUSE THEY ARE CONTRIBUTING TO OR PAYING ENTIRELY FOR THE COST OF COVERAGE AND WANT TO SPEND THE MONEY WISELY THEY ALSO WANT TO OFFER A COMPETITIVE BENEFIT THAT WILL ATTRACT AND RETAIN GOOD EMPLOYEES TO HELP EMPLOYEES USE THEIR HEALTH PLANS EFFECTIVELY MOST COMPANIES EXPLAIN THE PLANS THROUGH DETAILED COMMUNICATION CAMPAIGNS COMPANIES ALSO MAKE SURE EMPLOYEES GET ASSISTANCE WITH QUESTIONS AND PROBLEMS AS THEY ARISE SUCH AS WHAT TREATMENTS ARE COVERED HOW TO PRECERTIFY A HOSPITAL STAY AND HOW TO RESOLVE INCORRECTLY PAID CLAIMS UNDER THE CLINTON PLAN THE SCENARIO WILL BE VASTLY DIFFERENT EVERY COMPANY WITH FEWER THAN 5000 FULLTIME EMPLOYEES WILL HAVE TO JOIN A STATECHARTERED REGIONAL HEALTH ALLIANCE THE SOLE HEALTH INSURANCE PURCHASING AGENT FOR ITS MEMBERS OVER 90 OF THE WORK FORCE WILL BE MEMBERS OF SUCH ALLIANCES WHICH WILL HAVE VIRTUAL MONOPOLY BUYING POWER IN THEIR REGIONS THE EMPLOYEREMPLOYEE HEALTH INSURANCE LINK WILL BE SEVERED SINCE COMPANIES WILL BE PAYING PREMIUMS ONLY TO AN ALLIANCE TO ESTABLISH SUFFICIENT BUYING POWER MOST STATES WILL CHARTER ONE OR A FEW NONCOMPETING ALLIANCES EACH COVERING SEVERAL HUNDRED THOUSAND PERHAPS MILLIONS OF PEOPLE IN ADDITION STATES WILL HAVE THE OPTION OF ADOPTING A SINGLEPAYER APPROACH BUYING COVERAGE FOR ALL RESIDENTS AND GIVING THEM NO ALTERNATIVE TO THE STATE PLAN THUS ALMOST EVERYONE WILL OBTAIN COVERAGE THROUGH A LARGE STATE AND FEDERALLY REGULATED BUREAUCRACY CHOOSING A PLAN WILL BE A CHALLENGE A TYPICAL REGIONAL HEALTH ALLIANCE WILL OFFER NUMEROUS PLANS PERHAPS DOZENS FROM THREE GENERAL TYPES FEEFORSERVICE HMO AND A HYBRID THAT PAYS HMOSTYLE BENEFITS INSIDE THE PROVIDER NETWORK BUT PERMITS OUTOFNETWORK USE YOU WILL PICK YOUR HEALTH PLANS DURING THE REGIONAL HEALTH ALLIANCE'S ANNUAL OPEN ENROLLMENT PERIOD EACH ALLIANCE WILL PUBLISH A GIANT RATE SHEET DISPLAYING THE COST OF THE VARIOUS PLANS IF YOUR EMPLOYER OFFERS ANY BENEFITS BEYOND THE STANDARD PACKAGE STIPULATED BY THE ALLIANCE MANY EMPLOYERS PARTICULARLY THOSE WITH COLLECTIVE BARGAINING AGREEMENTS UNDOUBTEDLY WILL THE RATE INFORMATION WILL BE SUPPLEMENTED BY A SEPARATE COMMUNICATION FROM YOUR COMPANY TO HELP YOU CHOOSE THE ALLIANCE WILL PUBLISH STANDARD DATA ON THE QUALITY OF EACH HEALTH PLAN BUT BECAUSE MEASURING THE QUALITY OF EACH PLAN ISN'T YET A WELLDEVELOPED SKILL IT IS LIKELY THAT ONLY SOME BASIC STATISTICS ON CONSUMER SATISFACTION WILL BE REPORTED IF IT TURNS OUT THAT THE PLAN YOU WANT IS OVERSUBSCRIBED YOU WILL BE FORCED TO SELECT A DIFFERENT PLAN THAT MAY NOT BE TO YOUR LIKING SOUND CONFUSING IT IS SURE TO BE MOST PEOPLE WILL HAVE TO CHOOSE FROM DOZENS OF PLANS AT DIFFERENT PRICES WITH VERY LITTLE GUIDANCE ABOUT WHAT CRITERIA TO USE IN MAKING THEIR CHOICE BUT DON'T WORRY IF YOU HAVE A QUESTION YOU CAN CALL THE ALLIANCE OMBUDSMAN'S OFFICE FOR HELP PROBLEMS AND DISPUTES WILL BE RESOLVED THROUGH AN ELABORATE BUREAUCRATIC PROCESS BEGINNING IN A COMPLAINT REVIEW OFFICE WHICH EACH STATE MUST SET UP IF YOUR CLAIM IS PAID INCORRECTLY OR YOU ARE DENIED COVERAGE FOR TREATMENT YOU BELIEVE YOU ARE ENTITLED TO YOU MUST CALL THE COMPLAINT REVIEW OFFICE TO LODGE A GRIEVANCE IF YOU DON'T RECEIVE SATISFACTION FROM THE THREE LEVELS OF HEARINGS MANDATED AT THE ALLIANCE LEVEL YOU MAY APPEAL TO A NEW FEDERAL AGENCY THE FEDERAL HEALTH PLAN REVIEW BOARD IF THIS SOUNDS LIKE DEALING WITH THE DEPARTMENT OF MOTOR VEHICLES IT SHOULD THE ALARMING FACT IS THAT THE MAJORITY OF AMERICANS WHO NOW GET THEIR EMPLOYER'S HELP IN PURCHASING AND MANAGING HEALTH INSURANCE WILL BECOME UNDER THE CLINTON PLAN SUPPLICANTS OF A LARGE GOVERNMENT BUREAUCRACY THAT IS MUCH LESS LIKELY TO BE RESPONSIVE TO THEIR CONCERNS MANY PEOPLE BELIEVE UNIVERSAL HEALTH CARE COVERAGE IS A WORTHY GOAL AND THEY WOULD EVEN AGREE TO PAY MORE IN TAXES OR PREMIUMS TO ACHIEVE IT BUT THEY WILL EVALUATE THE CLINTON PLAN AT LEAST IN PART ON WHETHER IT EASES OR COMPLICATES THEIR ACCESS TO AND USE OF BENEFITS IF THEY SENSE THEY ARE EXCHANGING AN IMPERFECT BUT ESSENTIALLY WORKABLE BENEFIT FOR A HOPELESSLY TANGLED BUREAUCRATIC PROCESS THEY WILL JUDGE THE CLINTON PLAN HARSHLY THIS POTENTIAL ADMINISTRATIVE NIGHTMARE CAN BE AVOIDED ALTERNATIVE PROPOSALS WOULD ALLOW ALL BUT THE SMALLEST COMPANIES TO OPT OUT OF A REGIONAL ALLIANCE AND THEY WOULD ESTABLISH COMPETING ALLIANCES IN EACH REGION THIS WOULD GIVE THE SMALLEST BUSINESSES THE GROUP BUYING POWER THEY NEED AND A CHOICE OF ALLIANCES WHILE PRESERVING WHAT MOST AMERICANS NOW ENJOY GOOD BENEFITS THAT ARE EASY TO USE MR BILLET IS A PRINCIPAL AT A FOSTER HIGGINS & CO AN EMPLOYEE BENEFITS CONSULTING FIRM IN STAMFORD CONN 9401270097 940127 THREE UNIONS SEEK TO HOLD ELECTIONS TO REPRESENT USAIR'S GROUND WORKERS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL A GROUND BATTLE HAS ERUPTED AT USAIR WITH THREE MAJOR UNIONS FIGHTING TO REPRESENT 13500 OF THE CARRIER'S GROUND WORKERS IN ONE OF THE BIGGEST CONTESTS IN YEARS THE THREEWAY BATTLE SHOWS HOW ANXIOUS ORGANIZED LABOR IS TO SIGN UP NEW MEMBERS AFTER YEARS OF DECLINE IT ALSO ILLUSTRATES THAT THE UNIONS BELIEVE USAIR IS VULNERABLE DUE TO RECENT LAYOFFS AND WAGE AND BENEFIT CONCESSIONS AT THE AIRLINE A UNIT OF USAIR GROUP INC OF ARLINGTON VA ALL THREE UNIONS HAVE SEEN SUBSTANTIAL DROPS IN MEMBERSHIP SINCE THE 1970S AND PLACE THE USAIR CAMPAIGNS AMONG THEIR HIGHEST PRIORITIES THIS YEAR THIS IS A BIG ONE GEORGE KOURPIAS PRESIDENT OF THE MACHINISTS UNION SAID IN AN INTERVIEW THIS WEEK THE STEELWORKERS CLAIMED THAT 60 OF THE FLEETSERVICE WORKERS HAD SIGNED AUTHORIZATION CARDS AND ASKED USAIR CHAIRMAN SETH SCHOFIELD TO WAIVE AN ELECTION AND RECOGNIZE THE UNION A USAIR SPOKESWOMAN SAID YESTERDAY THE AIRLINE IS REJECTING THAT REQUEST BECAUSE IT'S UP TO AN EMPLOYEES' VOTE TO DETERMINE A UNION UNIONS HAVE STRUCK OUT IN RECENT ATTEMPTS TO ORGANIZE USAIR'S FLEETSERVICE EMPLOYEES ONE OF THE LAST BIG PLUMS IN THE HEAVILY ORGANIZED AIRLINE INDUSTRY THE TEAMSTERS HAVE REPRESENTED FLEETSERVICE WORKERS AT USAIR UNITS IN THE PAST BUT LOST A REPRESENTATION ELECTION IN 1990 THE STEELWORKERS UNION WHICH IS BASED IN PITTSBURGH SITE OF USAIR'S BIGGEST HUB NARROWLY LOST A 1992 ELECTION ALTHOUGH IT PREVAILED IN A VOTE AGAINST THE MACHINISTS THE STEELWORKERS FAILED TO GET THE MAJORITY TURNOUT REQUIRED BY THE NATIONAL MEDIATION BOARD WHICH OVERSEES TRANSPORATION LABOR RELATIONS IN PLANNING TO FILE WITH THE BOARD FOR ANOTHER ELECTION AS SOON AS POSSIBLE THE UNIONS ARE SHOWING THAT THEY BELIEVE THE OUTCOME WILL BE DIFFERENT THIS TIME BUT EVEN BEFORE THE FILINGS THE UNIONS ARE JOCKEYING FOR POSITION TEAMSTERS PRESIDENT RON CAREY KICKS OFF HIS UNION'S CAMPAIGN TODAY WITH A NEWS CONFERENCE AND RALLY IN WASHINGTON DC HE'S LIKELY TO BOAST THAT THE TEAMSTERS ARE BACK WITH A REFORMED DEMOCRATIC UNION THAT ALREADY REPRESENTS WORKERS AT NORTHWEST AIRLINES AND SOUTHWEST AIRLINES THE STEELWORKERS CLAIMING THEY HAVE THE MOST SIGNED AUTHORIZATION CARDS ASKED THE OTHER TWO UNIONS TO BOW OUT A REQUEST THAT WAS QUICKLY REJECTED THE MACHINISTS MEANWHILE NOTE THAT THEY ARE THE LARGEST AIRLINE UNION WITH 105000 MEMBERS IN THE INDUSTRY INCLUDING 8000 MECHANICS AT USAIR ALL THREE UNIONS ARE USING USAIR'S RECENT CUTBACKS AS A WEAPON AGAINST THE CARRIER LAYOFFS ANNOUNCED IN SEPTEMBER ARE CLAIMING THE JOBS OF SOME 1800 NONUNION GROUND WORKERS WHILE UNIONIZED PILOTS FLIGHT ATTENDANTS AND MECHANICS HAVE JOB SECURITY CLAUSES IN THEIR CONTRACTS IT'S CRYSTAL CLEAR TO THESE WORKERS THAT WHEN YOU'RE NONUNION YOU'RE FIRST IN LINE TO MAKE SACRIFICES SAID BOB CALLAHAN WHO HEADS THE ORGANIZING DRIVE FOR THE STEELWORKERS 9401270096 940127 PRUDENTIAL UNIT'S BROKER DISCIPLINED BY THE BIG BOARD BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC'S LIMITEDPARTNERSHIP WOES AREN'T OVER FOR AT LEAST ONE BROKER AT THE FIRM IN AN UNUSUAL ACTION THE NEW YORK STOCK EXCHANGE BARRED A PRUDENTIAL BROKER FROM SELLING LIMITED PARTNERSHIPS FOR THREE YEARS FOR ALLEGEDLY MAKING UNSUITABLE TRADES FOR CUSTOMERS THE CENSURE OF STEPHEN ZIOMEK 43 YEARS OLD COMES AS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SEEKS TO GET PAST ITS PARTNERSHIP PROBLEMS PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM IN OCTOBER AGREED TO PAY AT LEAST 371 MILLION IN RESTITUTION AND FINES TO SETTLE PARTNERSHIP FRAUD CHARGES BROUGHT BY FEDERAL AND STATE REGULATORS THE BIG BOARD TYPICALLY DOESN'T HANDLE PARTNERSHIP CASES EXCHANGE OFFICIALS SAY THOSE DISPUTES OFTEN ARE HEARD BY THE SECURITIES AND EXCHANGE COMMISSION OR THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BECAUSE MANY OF THE PARTNERSHIPS WERE SOLD OVERTHECOUNTER THIS IS JUST ONE THAT CAME OUR WAY A BIG BOARD OFFICIAL SAID THE BIG BOARD HEARING PANEL FOUND THAT MR ZIOMEK MADE UNSUITABLE PURCHASES OF PARTNERSHIPS ON BEHALF OF FOUR CUSTOMERS IN ONE INSTANCE ZIOMEK WAS ADVISED BY THE CUSTOMER THAT SHE HAD BOTH AN ANNUAL SALARY AND LIQUID ASSETS OF LESS THAN 20000 THE EXCHANGE SAID MR ZIOMEK WHO HAS A NONPUBLISHED TELEPHONE NUMBER IN SCOTTSDALE ARIZ COULDN'T BE REACHED FOR COMMENT HE CONSENTED TO THE BIG BOARD FINDINGS WITHOUT ADMITTING OR DENYING GUILT MR ZIOMEK ISN'T CURRENTLY IN OUR BRANCH OFFICE PRUDENTIAL SAID IN A STATEMENT WE'RE EXAMINING THE SITUATION CLOSELY MR ZIOMEK WAS BARRED FROM DOING BUSINESS FOR FOUR WEEKS IN ADDITION TO THE THREEYEAR BAR ON PARTNERSHIP PURCHASES OR SALES IN ENTERING THE ORDER THE EXCHANGE SAID IT CONSIDERED ZIOMEK'S AGREEMENT TO PERSONALLY REIMBURSE TWO CUSTOMERS 5000 EACH TO COVER THE LOSSES IN THEIR PARTNERSHIP ACCOUNTS SEPARATELY PRUDENTIAL HAS AGREED TO REIMBURSE BROKERS IN TEXAS FOLLOWING AN ACCORD WITH TEXAS REGULATORS THAT TEMPORARILY BARS THE FIRM FROM OPENING NEW BROKERAGE ACCOUNTS IN THE STATE AS REPORTED PRUDENTIAL AGREED UNDER THE SETTLEMENT TO BE SUSPENDED FROM SOLICITING OR ACCEPTING NEW BROKERAGE BUSINESS FOR FIVE BUSINESS DAYS PRUDENTIAL'S NORTH DALLAS OFFICE WON'T BE ALLOWED TO ENGAGE IN THE SAME ACTIVITIES FOR 20 BUSINESS DAYS PRUDENTIAL SAID THE TWO PERIODS WILL RUN CONCURRENTLY STARTING JAN 31 PRUDENTIAL SAID IT WILL PAY ITS TEXAS BROKERS 5 OF THEIR AVERAGE MONTHLY COMPENSATION FOR THE PAST 12 MONTHS THIS MEANS THAT A 120000 PRODUCER WILL RECEIVE A 500 CHECK FOR THE LOST TIME PRUDENTIAL SAYS BROKERS IN PRUDENTIAL'S NORTH DALLAS OFFICE WILL RECEIVE 20 OF THEIR AVERAGE MONTHLY COMPENSATION IT WAS UNFAIR TO PUT THE BURDEN OF SANCTIONS ON BROKERS MOST OF WHOM WEREN'T AT THE FIRM WHEN THE PARTNERSHIP ABUSES OCCURRED A PRUDENTIAL SPOKESMAN SAID 9401270095 940127 CHEVRON IS LIKELY TO CUT US OPERATIONS FIRM BOOSTS DIVIDEND AND PROPOSES SPLIT BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL CHEVRON CORP INTENT ON MAINTAINING ITS COSTCUTTING MOMENTUM BY SAVING AN ADDITIONAL 250 MILLION THIS YEAR IS EXPECTED TO ANNOUNCE PLANS TODAY TO CONSOLIDATE AND SHRINK ITS US OPERATIONS FURTHER AS PART OF ITS LONGTERM STRATEGY WHICH ALSO SEEKS TO COMBINE RIGOROUS OVERHEAD REDUCTIONS WITH STEPPEDUP GROWTH OVERSEAS CHEVRON YESTERDAY SAID IT WAS RAISING ITS QUARTERLY DIVIDEND FOR THE SIXTH TIME IN AS MANY YEARS TO 925 CENTS A SHARE FROM 875 CENTS PAYABLE MARCH 10 TO STOCK OF RECORD FEB 10 IT ALSO SAID STOCKHOLDERS WILL BE ASKED TO APPROVE A 2FOR1 STOCK SPLIT AT THE ANNUAL MEETING IN MAY CHEVRON SHARES CLOSED YESTERDAY AT 92 OFF 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEWS OF THE STOCK SPLIT AND DIVIDEND INCREASE WAS ANNOUNCED JUST BEFORE THE END OF NORMAL TRADING HOURS WHILE THE COST CUTS WILL RANGE FROM PERSONNEL REDUCTIONS IN ITS STRUGGLING CHEMICAL BUSINESS TO ANTICIPATED FURTHER SHRINKAGE OF PRIMARILY DOMESTIC REFINING MARKETING AND EXPLORATION OPERATIONS THEY DON'T ENTAIL THE KIND OF EXTENSIVE WORKFORCE REDUCTIONS OR ASSET SALES CHEVRON HAS CARRIED OUT OVER THE PAST FEW YEARS THOSE HAVE SLASHED ABOUT 12 BILLION FROM OPERATING EXPENSES ON AN ANNUAL BASIS BUT TAKEN TOGETHER ANALYSTS AND INDUSTRY OFFICIALS SAID THE LATEST MOVES ARE SIGNIFICANT BECAUSE THEY SHOW THE COMPANY'S INCREASING EMPHASIS ON USING IMPROVED CASH FLOW TO PURSUE BOTH UPSTREAM EXPLORATION AND DOWNSTREAM REFINING AND MARKETING OPPORTUNITIES MORE AGGRESSIVELY OUTSIDE THE US CHEVRON SPOKESMEN DECLINED TO COMMENT ON WHETHER ANY ANNOUNCEMENT WAS PLANNED FOR TODAY BUT ANALYSTS SAID CHAIRMAN KENNETH DERR WAS SCHEDULED TO HOLD A TELEVISED CONFERENCE WITH THOUSANDS OF EMPLOYEES AROUND THE WORLD PORTIONS OF THE COSTCUTTING PLAN BEGAN LEAKING OUT EVEN AS OFFICIALS AT THE COMPANY'S SAN FRANCISCO HEADQUARTERS ANNOUNCED THE DIVIDENDRELATED BOARD DECISIONS CHEVRON'S SPECIALTY CHEMICALS DIVISION FOR INSTANCE QUIETLY INFORMED EMPLOYEES ON TUESDAY THAT IT INTENDS TO CUT ABOUT 500 JOBS OR NEARLY 10 OF THE WORK FORCE OVER THE NEXT THREE YEARS MOSTLY AS A RESULT OF PLANT CLOSINGS OR SALES THE ROUGHLY 100 MILLION SAVING FROM THOSE STEPS APPEARS TO BE ON TOP OF THE ROUGHLY 250 MILLION COSTSAVINGS ESTIMATE ANALYSTS USED FOR THE COMPANY'S CORE OIL AND NATURALGAS OPERATIONS PAUL TING AN OILINDUSTRY ANALYST WITH OPPENHEIMER & CO SAID THE STEPS CHEVRON EXECUTIVES HAVE TELEGRAPHED IN THE PAST FEW DAYS SUGGEST THAT THE OIL CONCERN'S COSTS COULD DROP BY AS MUCH AS 30 CENTS A BARREL BY THE END OF THE YEAR THE COMPANY'S COSTS HAVE DROPPED TO 651 A BARREL FROM MORE THAN 740 TWO YEARS AGO CHEVRON'S STRATEGY CERTAINLY SHOWS THAT THE THEME OF COST REDUCTIONS BY BIG OIL IS FAR FROM OVER ACCORDING TO MR TING CHEVRON'S MR DERR WHO IN THE PAST FIVE YEARS HAS GUIDED THE COMPANY FROM BEING ONE OF THE INDUSTRY'S HIGHESTCOST PRODUCERS TO A POSITION OF ROUGH PARITY WITH THE COMPETITION HAS STRESSED THE IMPORTANCE OF FOCUSING ON LONGTERM GROWTH A MAJOR ELEMENT OF ANY FUTURE EXPANSION IS ABOUT 1 BILLION IN CASH CURRENTLY BEING GENERATED BY DOMESTIC EXPLORATION AND DEVELOPMENT OPERATIONS FOR THE REST OF THE 1990S MR DERR SAID IN AN INTERVIEW BEFORE YESTERDAY'S ANNOUNCEMENT CHEVRON'S GOAL WON'T BE JUST TO SQUEEZE YOUR COSTS AND WATCH THEM COME BACK 12 MONTHS LATER WHICH IS HISTORICALLY WHAT ALL THE MAJOR OIL COMPANIES HAVE DONE RATHER THE CHAIRMAN SAID MANAGEMENT WANTS TO MAKE SURE THE SAVINGS ARE PERMANENT AND THE COMPANY HE ADDED IS PURSUING A VARIETY OF WAYS TO SHIFT MORE FROM A RESTRUCTURING TO A GROWTH MODE BY FOCUSING ON INTERNATIONAL VENTURES BY 1995 CHEVRON HAS TOLD ANALYSTS ONLY ABOUT 20 OF THE COMPANY'S TOTAL CAPITAL WILL BE DEVOTED TO US EXPLORATION AND DEVELOPMENT ABOUT HALF OF WHAT IT WAS IN 1990 IN TODAY'S ANNOUNCEMENT CHEVRON ALSO IS EXPECTED TO INDICATE THAT ITS OVERALL CAPITAL BUDGET WILL REMAIN ROUGHLY UNCHANGED FROM CURRENT LEVELS BUT SPENDING ON KEY OFFSHORE BUSINESS RANGING FROM ENHANCED PRODUCTION IN INDONESIA AND AFRICA TO NEW OR EXPANDED REFINERIES IN THE PACIFIC ALREADY HAS CLIMBED SHARPLY THOUGH CHEVRON OFFICIALS PUBLICLY SUGGESTED IN THE PAST THAT FURTHER PERSONNEL CUTS WERE POSSIBLE FROM THE CHEMICAL OPERATION THEY STAYED AWAY FROM TELLING EVEN ANALYSTS ABOUT MORE WIDERANGING CUTS UNTIL JUST THE PAST FEW DAYS ACCORDING TO MR TING EXECUTIVES INDICATED THIS WEEK THAT THE NEWEST VERSION OF CHEVRON'S STRATEGIC PLAN ENVISIONS A ROUGHLY 5 ANNUAL INCREASE IN WORLDWIDE LIQUIDS PRODUCTION THROUGH MOST OF THE REST OF THE DECADE A CHEVRON SPOKESMAN SAID THE COMPANY HAS 325 MILLION SHARES OUTSTANDING IF APPROVED THE STOCK SPLIT WILL BE EFFECTIVE MAY 11 TO SHARES OF RECORD ON THAT DATE THE ADDITIONAL SHARES WILL BE PAYABLE JUNE 10 STOCKHOLDERS ALSO WILL BE ASKED TO DOUBLE TO ONE BILLION THE NUMBER OF AUTHORIZED SHARES 9401270094 940127 TECHNOLOGY & HEALTH AMD DEALS BLOW TO BIG INTEL MONOPOLY COMPAQ NAMES CHIP MAKER TO BE SECOND SUPPLIER OF MICROCHIPS FOR PCS BY G PASCAL ZACHARY AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC LOOSENING INTEL CORP'S MONOPOLY OVER A CENTRAL PIECE IN PERSONAL COMPUTERS SAID IT WILL SUPPLY MICROCHIPS TO COMPAQ COMPUTER CORP ONE OF INTEL'S BIGGEST CUSTOMERS THE DEAL BOOSTS ADVANCED MICRO WHICH MAKES MICROCHIPS THAT ARE COMPATIBLE WITH INTEL'S FLAGSHIP 486 CHIP THE PROCESSOR INSIDE TODAY'S MOST POPULAR PCS THIS IS A WATERSHED AGREEMENT SAID WJ SANDERS III ADVANCED MICRO'S CHIEF EXECUTIVE OFFICER WE'VE FINALLY GOTTEN THE ENDORSEMENT OF ONE OF THE BIG PC MAKERS HE SAID INTEL MEANWHILE WILL CONTINUE AS COMPAQ'S PRINCIPAL SUPPLIER WITH ADVANCED MICRO SERVING AS A HEDGE AGAINST SUPPLY SHORTAGES THAT HAVE PLAGUED INTEL IN THE PAST YOU NEVER KNOW WHEN THERE'S GOING TO BE A HICCUP SAID KEVIN BOHREN A COMPAQ VICE PRESIDENT AFTER ADVANCED MICRO'S ANNOUNCEMENT YESTERDAY ITS SHARES JUMPED 625 CENTS TO 20625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INTEL SHARES SAGGED 150 TO 63625 IN NASDAQ STOCK MARKET TRADING ADVANCED MICRO'S RAID COMES AS CHALLENGES TO INTEL'S REIGN OVER PC MICROCHIPS ARE MORE NUMEROUS AND SERIOUS THAN AT ANY TIME SINCE THE ADVENT OF THE PC MORE THAN A DECADE AGO A COALITION OF APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC PLANS TO SHIP PCS USING A NONINTEL MICROCHIP LATER THIS YEAR MICROSOFT CORP WHICH SETS THE STANDARD FOR PC SOFTWARE RECENTLY RELEASED A VERSION OF ITS STANDARD THAT FOR THE FIRST TIME WORKS ON NONINTEL CHIPS ADVANCED MICRO HAS BATTLED FOR YEARS TO GAIN GROUND ON INTEL FACING LAWSUITS AND CUSTOMER SKEPTICISM IN THE PROCESS INDEED MR SANDERS SPOKE TO REPORTERS YESTERDAY DURING A RECESS OF THE LATEST TRIAL BETWEEN HIS COMPANY AND INTEL WHICH HAS REPEATEDLY THOUGH SO FAR UNSUCCESSFULLY SUED ADVANCED MICRO OVER COPYCAT ALLEGATIONS THIS DEAL WITH COMPAQ REMOVES ANY LEGITIMATE REASON NOT TO BUY CHIPS FROM US MR SANDERS SAID OTHERS AREN'T SO SURE TO START WITH COMPAQ HAS PLEDGED TO SATISFY JUST AN UNSPECIFIED FRACTION OF ITS MICROCHIP NEEDS THROUGH ADVANCED MICRO WHILE MR SANDERS SAID THAT COMPAQ WILL BECOME THE COMPANY'S LARGEST CUSTOMER WITHIN A YEAR HE PROVIDED NO SALES FORECASTS INITIALLY COMPAQ COULDN'T GET SUFFICIENT NUMBERS OF INTEL'S NEWEST MICROCHIP THE PENTIUM IT'S NOT A PRICING ISSUE MR BOHREN SAID IT'S JUST GOOD BUSINESS TO ADD MULTIPLE SUPPLIERS MOST OTHER BIG PC MAKERS SEEM LIKELY TO REMAIN LOYAL TO INTEL WHICH IS THEIR SOLE SUPPLIER DELL COMPUTER CORP FOR INSTANCE HAS NO IMMEDIATE PLANS TO FOLLOW COMPAQ'S LEAD THE INTEL BRAND CARRIES A LEVEL OF AWARENESS THAT'S VALUABLE SPOKESMAN DEAN KLINE SAID WE DON'T SEE ANY NEED TO MAKE ANY KIND OF CHANGE YET MR SANDERS VOWED TO GRAB ANOTHER MAJOR INTEL CUSTOMER BEFORE THE YEAR IS OUT WHILE INTEL DOWNPLAYED THE THREAT THE COMPANY FELT THE STING OF COMPAQ'S PARTIAL DEFECTION OBVIOUSLY I'M DISAPPOINTED SAID PAUL OSTELLINI INTEL'S SENIOR VICE PRESIDENT MR OSTELLINI DESCRIBED THE DEAL AS AN ISOLATED INSTANCE SAYING ADVANCED MICRO HAD SECURED ONE BIG FISH WHILE ALLOWING THAT INTEL'S RIVAL MIGHT PICK UP A FEW OTHER CUSTOMERS HE SAID THAT IT REMAINS TO BE SEEN WHETHER ADVANCED MICRO CAN DELIVER OVER TIME 9401270093 940127 WHO'S NEWS SIERRA ONLINE INC SIERRA ONLINE INC BELLEVUE WASH RICHARD A GELHAUS RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS MAKER OF ENTERTAINMENT SOFTWARE NO PERMANENT SUCCESSOR WAS NAMED THE COMPANY SAID FRED SCHAPELHOUMAN ITS CORPORATE COUNSEL WILL ASSUME ALL ASPECTS OF FINANCIAL REPORTING ON AN ACTING BASIS 9401270092 940127 PEPPERAND SALT AND FOLLOW ITS OWN PERVERSE MIND WOULD MEAN ITS RAM NOW IS FORGETFUL WE ALL WOULD THE FUTURE ILLUMINE ON SOMETHING NO BETTER THAN HUMAN 9401270091 940127 SPEAKING OF BUSINESS HOW THE BIGGEST LOBBY GREW BY LINDLEY H CLARK JR AS PRESIDENT CLINTON TRIES TO SELL HIS HEALTH CARE REFORM BILL TO LAWMAKERS AND THE PUBLIC THIS YEAR THE AMERICAN ASSOCIATION OF RETIRED PERSONS WILL BE WATCHING AND RESPONDING THIS IS A GROUP THAT WASHINGTON IS AFRAID TO IGNORE AND MY HOW THE ASSOCIATION GREW THE AARP NOW HAS 33 MILLION MEMBERS AS PETER PETERSON A FORMER SECRETARY OF COMMERCE AND A CRITIC OF SOME AARP ATTITUDES WRITES IN A RECENT BOOK ITS MEMBERSHIP INCLUDES ONE IN EVERY FOUR REGISTERED US VOTERS AND IS BIGGER THAN ANY OTHER ORGANIZATION IN AMERICA ASIDE FROM THE CATHOLIC CHURCH OTHER SERVICES ARRANGED BY AARP BUT PROVIDED BY OUTSIDE FIRMS INCLUDE GROUP HEALTH INSURANCE CAR AND HOMEOWNERS INSURANCE MOBILEHOME INSURANCE AN INVESTMENT PROGRAM FEATURING MUTUAL FUNDS A VISA CARD PROGRAM A TRAVEL PROGRAM RENTAL CAR AND HOTEL DISCOUNTS AND EVEN EMERGENCY ROAD SERVICE AARP STAFF MEMBERS HOWEVER SAY FIRMLY THAT SERVICE WHILE IT MAY BE THE BEGINNING IS NOT THE END FOR THE ASSOCIATION ADVOCACY GOES RIGHT ALONG WITH THE SERVICE SAYS ELLIOT CARLSON EDITOR OF THE AARP BULLETIN A NEWSPAPER PUBLISHED EVERY MONTH EXCEPT AUGUST IT'S THE ADVOCACY PART OF AARP'S MISSION THAT WORRIES MR PETERSON AND OTHER CRITICS OF THE ASSOCIATION WHEN AARP SPEAKS HE SAYS IT SPEAKS LOUD AND CLEAR IN MY DEFICITFIGHTING BATTLES OF THE 1980S I LEARNED JUST HOW MUCH WASHINGTON LISTENS CONVENIENTLY THE ASSOCIATION IS HEADQUARTERED IN WASHINGTON BETWEEN NOW AND THE YEAR 2040 MR PETERSON NOTES THE SHARE OF THE POPULATION THAT IS 65 AND OVER IS EXPECTED TO GROW FROM 13 TO 20 WITH A CORRESPONDING DROP IN THE SHARE OF YOUNGER AMERICANS A LARGE PART OF FEDERAL SPENDING ALREADY GOES FOR SOCIAL SECURITY AND MEDICARE PAYMENTS TO THE ELDERLY WHETHER THEY NEED SUCH PAYMENTS OR NOT AND THE SPENDING IS IN LARGE PART FINANCED BY YOUNGER WORKING PEOPLE MR PETERSON THINKS THAT SUCH PAYMENTS SHOULD BE GRADUALLY SUBJECTED TO A MEANS TEST IF YOU NEED IT YOU GET IT IF YOU DON'T NEED IT YOU DON'T GET IT IF ANY MEMBER OF CONGRESS SHOULD PROPOSE SUCH MEANS TESTS IT'S CLEAR THAT THE AARP WOULD FIRMLY OPPOSE THEM CBS RECENTLY DEVOTED A SEGMENT OF 60 MINUTES TO MR PETERSON'S PROPOSAL AND JOHN ROTHER THE AARP LEGISLATIVE DIRECTOR WAS BOTH CLEAR AND CONCISE HE WAS ASKED IF THE ASSOCIATION WOULD OPPOSE MR PETERSON'S PLAN AND HE RESPONDED SURE THE ASSOCIATION'S POSITION IS THAT THE PETERSON PROPOSAL IS AN ATTACK ON THE WHOLE IDEA OF SOCIAL INSURANCE THE AARP CONTENDS THAT MOST GOVERNMENT ENTITLEMENTS GO TO THE NEAR POOR WHO THE ASSOCIATION FIGURES EARN 10000 OR LESS A YEAR GOVERNMENT FIGURES HOWEVER INDICATE THAT NEARLY HALF OF ALL ENTITLEMENTS GO TO PEOPLE EARNING 30000 TO 200000 A YEAR A FULLFLEDGED MEANS TEST IS UNLIKELY TO BE ADOPTED ANYTIME SOON BUT THE GOVERNMENT IS EDGING IN THAT DIRECTION A NEW TAX ON SOCIAL SECURITY PAYMENTS FOR PEOPLE BEYOND A CERTAIN INCOME LEVEL HAS BEEN PASSED AND GOES INTO EFFECT THIS YEAR A MORE IMMINENT QUESTION IS WHAT TO DO ABOUT FEDERAL HEALTH CARE THE AARP FEELS A SPECIAL RESPONSIBILITY HERE SINCE ONE OF MS ANDRUS'S EARLIEST PROBLEMS WAS FINDING A PRIVATE INSURANCE COMPANY THAT WOULD PROVIDE HEALTH INSURANCE FOR RETIRED TEACHERS SHE SUCCEEDED EVENTUALLY BUT THE PROBLEM NOW IS MUCH BIGGER THE AARP'S CLOUT STEMS IN LARGE PART FROM A WASHINGTON BELIEF THAT THE ASSOCIATION IS PULLING ALL OR AT LEAST MOST OF ITS 33 MILLION MEMBERS BEHIND IT BUT THAT MAY NOT BE SO THE ASSOCIATION HASN'T ENDORSED MR CLINTON'S HEALTH PLAN BUT ITS BOARD OF DIRECTORS SAYS IT'S THE BEST THAT HAS EMERGED SO FAR IN A STATEMENT THE DIRECTORS SAID WE BELIEVE THE PRESIDENT'S PROPOSAL PROVIDES THE STRONGEST AND MOST REALISTIC BLUEPRINT TO DATE FOR ACHIEVING OUR REFORM GOALS LATE LAST YEAR THE AARP COMMISSIONED A RESEARCH GROUP TO POLL 1217 SCIENTIFICALLY SELECTED AMERICANS AGED 18 OR OLDER AND CONCLUDED THAT ONLY 38 OF ADULT AMERICANS UNDERSTAND THE PLAN EITHER VERY WELL OR FAIRLY WELL NONETHELESS A SLIM 51 MAJORITY APPROVED THE PLAN AT ABOUT THE SAME TIME THE AARP BULLETIN ASKED ITS READERS ASSOCIATION MEMBERS ALL FOR THEIR FIRST REACTION TO THE PLAN OF THE 25000 READERS WHO RESPONDED AN OVERWHELMING 82 OPPOSED THE PLAN AND ONLY 17 APPROVED THE BULLETIN GOT SOME SALTY COMMENTS TOO EVERYONE WILL PAY MORE FOR THEIR HEALTH CARE AND RECEIVE CARE THAT IS INFERIOR TO WHAT THEY NOW HAVE SAID AL SINNER OF ESTES PARK COLO BOB MULTER OF RINDGE NH SAID THE SYSTEM AIN'T BROKE AND ANY BIG GOVERNMENT OVERHAUL CAN ONLY MAKE THINGS WORSE THE AARP WOULD LIKE TO BE ABLE TO EXPLAIN AWAY THE BULLETIN'S POLL CONSTANCE SWANK THE ASSOCIATION'S RESEARCH DIRECTOR COMMENTS PEOPLE WHO TAKE THE TIME TO WRITE ON AN EMERGING PUBLIC POLICY ISSUE AS THE BULLETIN READERS DID TYPICALLY HOLD STRONG VIEWS ON IT THEY'RE PROBABLY NOT A TRUE CROSSSECTION OF THE AARP MEMBERSHIP MAYBE NOT BUT 33 MILLION MEMBERS IS A LOT OF MEMBERS AND IF YOU WANT TO LEAD THEM YOU'D BETTER BE PRETTY SURE WHERE THEY'RE GOING 9401270090 940127 LAW SEC'S LEVITT TALKS OF ACTIVE ATTEMPTS TO CURB LITIGATION BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT SAID HIS AGENCY WILL BECOME MORE ACTIVE IN ATTEMPTING TO CURB UNNECESSARY SHAREHOLDER LITIGATION AND MIGHT INTERVENE IN CASES THAT THE AGENCY DEEMS FRIVOLOUS MR LEVITT SUGGESTED THAT THE AGENCY COULD WEIGH IN ON THE SIDE OF COMPANIES SEEKING TO DISMISS SHAREHOLDERS' LAWSUITS OR SEEKING TO OBTAIN FINES AGAINST PLAINTIFFS' LAWYERS WHO FILE FRIVOLOUS LAWSUITS AND MOTIONS SUCH INVOLVEMENT BY THE SEC WOULD COME IN THE TRIAL PHASE OF LAWSUITS RATHER THAN IN THE APPEALS PHASE WHEN THE AGENCY'S INVOLVEMENT IS MORE TYPICAL WE MIGHT ALSO CONSIDER ADVISING COURTS ON THE APPROPRIATENESS OF PROPOSED SETTLEMENTS IN PARTICULAR CASES MR LEVITT SAID IN A SPEECH TO THE SECURITIES REGULATION INSTITUTE IN SAN DIEGO MR LEVITT'S SPEECH INDICATES A SHIFT IN THE SEC'S ATTITUDE TOWARD SHAREHOLDER LITIGATION SUCH SUITS ARE FILED AGAINST COMPANIES WHEN THEIR ACTIONS ARE DEEMED TO HAVE HURT SHAREHOLDERS' STOCK VALUE THE GROUNDS FOR SUCH SUITS INCLUDE FAILURE TO WARN SHAREHOLDERS OF PRODUCT DELAYS OR OTHER CIRCUMSTANCES THAT COULD AFFECT STOCK PRICES AND MAY EVEN INCLUDE OVERLY OPTIMISTIC EARNINGS REPORTS THE SEC HISTORICALLY HAS VIEWED SUCH SUITS AS AN IMPORTANT SUPPLEMENT TO ITS OWN ENFORCEMENT EFFORTS AND THE AGENCY LAST YEAR PRESENTED CONGRESS WITH DATA SHOWING THAT THE NUMBERS OF SUITS HAVE HELD STEADY SINCE THE 1970S BUT COMPANIES PARTICULARLY STARTUPS HAVE LONG COMPLAINED THAT THEY ARE PENALIZED BY SHAREHOLDER SUITS WHEN STOCK PRICES MOVE EVEN SLIGHTLY DOWNWARD COMPANIES ALSO COMPLAIN ABOUT PROFESSIONAL PLAINTIFFS WHO BUY STOCK IN INDUSTRY GROUPS SUSCEPTIBLE TO SUDDEN DROPS IN STOCK PRICE AND ABOUT PLAINTIFFS' ATTORNEYS WHO ENCOURAGE SUCH LITIGATION MR LEVITT SAID THE SEC WOULD SUPPORT FEDERAL LEGISLATION THAT WOULD PROHIBIT LAW FIRMS FROM USING PROFESSIONAL PLAINTIFFS OR OTHERWISE MAINTAINING AN INVENTORY OF SHAREHOLDERS TO SERVE AS NOMINAL PLAINTIFFS IN CLASSACTION FILINGS IN ADDITION HE SAID THE SEC WOULD SUPPORT EFFORTS TO PROHIBIT EXTRA COMPENSATION FOR LEAD PLAINTIFFS IN CLASSACTION LAWSUITS IT WOULD ALSO BAR LAWYERS WHO OWN SECURITIES THAT ARE THE SUBJECT OF LITIGATION FROM BEING THE LEAD LAWYERS FOR PLAINTIFFS IN SUCH LAWSUITS LEAD LAWYERS IN CLASSACTION CASES TYPICALLY REAP A LARGER SHARE OF FEES WITHOUT GOING INTO SPECIFICS TODAY I AM ESPECIALLY INTERESTED IN WAYS TO GIVE SHAREHOLDERS GREATER CONTROL OVER THEIR OWN LITIGATION AND CURB POTENTIAL CONFLICTS OF INTEREST BETWEEN CLASSACTION LAWYERS AND THE SHAREHOLDERS THEY REPRESENT MR LEVITT SAID THE SEC WILL ALSO CONTINUE TO SUPPORT LEGISLATIVE EFFORTS TO ELIMINATE THE USE OF THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE WHICH ALLOWS PLAINTIFFS TO WIN TRIPLE DAMAGES IN SECURITIES CASES ISSUERS AND OTHER MARKET PARTICIPANTS SHOULD NOT BE EXPOSED TO RICO CLAIMS SEEKING TREBLE DAMAGES FOR DISCLOSURE VIOLATIONS HE SAID MR LEVITT SAID THE SEC WILL ALSO EXAMINE ITS OWN RULEMAKING PROCESS TO SEE IF ITS STATUTES ARE WORDED SO AMBIGUOUSLY AS TO ENCOURAGE LITIGATION MORE SPECIFIC LANGUAGE WOULD PROVIDE GREATER CERTAINTY TO BUSINESS TRANSACTIONS AND ALLOW ISSUERS TO AVOID LITIGATION OR AT LEAST TO DISPOSE OF LAWSUITS AT AN EARLY STAGE 9401270089 940127 POLITICS & POLICY US WILL DOUBLE AID TO UKRAINE IN BID TO AVERT ECONOMIC CRISIS SAVE TREATY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOPING TO HEAD OFF UKRAINE'S ECONOMIC IMPLOSION AND KEEP A NUCLEAR DISARMAMENT AGREEMENT ON TRACK PRESIDENT CLINTON HAS DECIDED TO DOUBLE US ECONOMIC ASSISTANCE TO UKRAINE AND SEEK CLOSER POLITICAL AND ECONOMIC TIES IN AN AGREEMENT WITH RUSSIA AND THE US EARLIER THIS MONTH UKRAINE'S PRESIDENT LEONID KRAVCHUK PLEDGED TO GIVE UP ALL HIS COUNTRY'S NUCLEAR WARHEADS IN EXCHANGE FOR ECONOMIC ASSISTANCE AND SECURITY ASSURANCES BUT WITH UKRAINE'S ECONOMY CAREENING OUT OF CONTROL THERE HAVE BEEN STRONG DOUBTS ABOUT WHETHER MR KRAVCHUK COULD OVERRIDE THE OBJECTIONS OF NATIONALIST LEGISLATORS AND LIVE UP TO THAT COMMITMENT US OFFICIALS HOPE THAT BY REACHING OUT TO UKRAINE NOW THEY CAN BOTH ENCOURAGE DESPERATELY NEEDED ECONOMIC REFORMS AND STRENGTHEN MR KRAVCHUK POLITICALLY UNTIL NOW UKRAINE HAS FAILED TO MAKE ANY ECONOMIC REFORMS AT ALL WITH MONTHLY HYPERINFLATION TOPPING 90 IN DECEMBER AND SECESSIONIST PRESSURES BUILDING AMONG ETHNIC RUSSIANS IN CRIMEA US OFFICIALS HAVE WARNED IN RECENT DAYS THAT UKRAINE COULD FACE ECONOMIC COLLAPSE AND POLITICAL EXPLOSION US OFFICIALS SAY THAT FOR THE SAKE OF THE TREATY AND OF STABILITY IN UKRAINE IT IS TIME FOR THE US TO SEEK CLOSER TIES A DELEGATION OF SENIOR UKRAINIAN OFFICIALS IS IN WASHINGTON THIS WEEK TO DISCUSS HOW FAR THOSE TIES MIGHT GO AS A RESULT OF THOSE TALKS US OFFICIALS SAY THAT THEY EXPECT TO DOUBLE THE CURRENT US COMMITMENT OF 155 MILLION IN ECONOMIC AID AND SIGNIFICANTLY INCREASE FUNDS FOR DISMANTLING UKRAINE'S NUCLEAR WARHEADS THE US ALSO EXPECTS TO INITIAL A BILATERAL TAX TREATY THIS WEEK A PREREQUISITE FOR ANY US INVESTMENT AND IS ALSO WORKING TOWARD A BILATERAL INVESTMENT TREATY US OFFICIALS SAY BOTH AGREEMENTS WOULD BE SIGNED WHEN PRESIDENT KRAVCHUK MEETS WITH PRESIDENT CLINTON IN WASHINGTON IN MARCH THE US IS ALSO HOPING TO SMOOTH UKRAINE'S RELATIONS WITH THE INTERNATIONAL LENDERS BY HELPING THEM CRAFT A WORKABLE ECONOMIC REFORM PROGRAM ACCORDING TO A SENIOR US OFFICIAL IN TESTIMONY BEFORE THE SENATE EARLIER THIS WEEK R JAMES WOOLSEY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY DESCRIBED UKRAINE AS A CRISIS IN THE MAKING HE SAID THAT REFORM HAS BEEN NONEXISTENT IN UKRAINE AND THAT ECONOMIC MISMANAGEMENT AND POLITICAL DRIFT HAD LED TO PROFOUND DISILLUSIONMENT 9401270088 940127 WHO'S NEWS ESSEF CORP ESSEF CORP CHARDON OHIO ELLIOT B ROSS 47 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AT THIS DESIGNER MAKER AND MARKETER OF PRODUCTS MADE FROM ENGINEERED PLASTICS THE APPOINTMENT IS EFFECTIVE MONDAY MR ROSS WAS ALSO NAMED EXECUTIVE VICE PRESIDENT OF THE COMPANY AN ESSEF SPOKESMAN SAID BOTH ARE NEW POSITIONS MR ROSS IS COCHAIRMAN OF CLEVELANDBASED INVERNESS PARTNERS A PRIVATELY HELD SUPPLIER OF DIE CASTINGS TO THE AUTOMOTIVE INDUSTRY A POSITION HE WILL LEAVE UPON JOINING ESSEF 9401270087 940127 LETTERS TO THE EDITOR HOW TO DO NO HARM' REJECT MACROECONOMICS I LIKE PAUL MCCRACKEN'S FIRST DO NO HARM PHRASE UNEMPLOYMENT THE CRISIS CONTINUES EDITORIAL PAGE JAN 7 PERHAPS BECAUSE I USED IT FOR THE SAME PURPOSE IN A CONTRIBUTION TO A 1990 EDITED VOLUME DISSENT ON KEYNES BUT HE AND I DIFFER ON THE POLICY IT IMPLIES TO BE QUITE BLUNT ABOUT IT DOING NO HARM REQUIRES A WHOLESALE REJECTION OF AGGREGATE MACROECONOMICS THE PREKEYNESIANS AND AUSTRIANS WERE RIGHT TO SUPPORT SAY'S LAW FREEMARKET UNEMPLOYMENT IS ALWAYS A PRICING PROBLEM AND NEVER ONE OF INSUFFICIENT AGGREGATE DEMAND GOVERNMENT COULD HELP ONLY IF IT COULD KNOW THE PATTERN OF PRICES THAT IS CONSISTENT WITH INDIVIDUALS' REAL PREFERENCES AS MISES'S AND HAYEK'S WORK ON SOCIALIST ECONOMIC CALCULATION EXPLAINED HOWEVER THERE IS NO SOURCE OF KNOWLEDGE OF INDIVIDUALS' PREFERENCES EXCEPT THE OBSERVATION OF THEIR CHOICES IN A FREE MARKET FINALLY IS IT NOT CLEAR THAT MR MCCRACKEN'S EXCELLENT ANALYSIS OF LABOR MARKETS HAMSTRUNG BY GOVERNMENT UNCERTAINTY DESCRIBES THOSE OF THE US BUT NOT OF CAPITALISM 9401270086 940127 WHO'S NEWS US BANKNOTE PRESIDENT RETIRES NEW YORK US BANKNOTE CORP SAID ITS CHIEF EXECUTIVE MORRIS WEISSMAN WILL ASSUME THE DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER AFTER THE SUDDEN RETIREMENT OF STANLEY KREITMAN A SPOKESWOMAN FOR THE COMPANY SAID THAT MR KREITMAN'S DEPARTURE WAS UNEXPECTED AND THAT HIS CONTRACT AT US BANKNOTE WOULD HAVE EXPIRED AT THE END OF DECEMBER 1996 HE WILL CONTINUE AS A CONSULTANT TO THE COMPANY THE COMPANY DID NOT SAY WHETHER A SUCCESSOR TO MR KREITMAN 62 YEARS OLD WILL BE NAMED OR WHETHER MR WEISSMAN 52 WILL CONTINUE TO FILL THOSE DUTIES MR KREITMAN'S RETIREMENT COMES IN THE WAKE OF THE COMPANY'S LOSS OF US POSTAL SERVICE PRINTING WORK VALUED AT AS MUCH AS 330 MILLION OVER FIVE YEARS 9401270085 940127 LETTERS TO THE EDITOR NOTHING SINISTER IN IT IT JUST OFFENDS LIBERALS YOUR JAN 6 POLITICS & POLICY ARTICLE ON EMPOWER AMERICA DOESN'T STICK TO ITS SUBJECT YOU DEVOTE EIGHT OUT OF 18 PARAGRAPHS TO SEN BOB DOLE WHO RECENTLY FOUNDED A COMPETING ORGANIZATION TO SEN DOLE'S NEW ALLY JUDE WANNISKI AND TO RESPONSE DYNAMICS INC RDI A DIRECTMAIL FIRM THESE CHARACTERS ARE INTRODUCED ONLY TO IMPUGN MESSRS DOLE AND WANNISKI NATURALLY HAVE LITTLE GOOD TO SAY ABOUT EMPOWER AMERICA AND YOU ALL BUT CALL THE GROUP FOOLISH FOR HIRING RDI ON THE DUBIOUS GROUND THAT THE FIRM PREVIOUSLY DID WORK FOR THE FOLKS WHO MADE THE WILLIE HORTON ADS IN ADDITION YOU DISCUSS THE SALARY OF HERITAGE FOUNDATION PRESIDENT DR EDWIN FEULNER WHO HAS NO RELATION WHATSOEVER TO EMPOWER AMERICA YOU WANT THINGS BOTH WAYS YOU TRY TO PORTRAY THE EMPOWER AMERICA FELLOWS AS LACKEYS OF WALL STREET MONEY AND SIMULTANEOUSLY AS DIRECTMAIL HUSTLERS WHO NEED TO CON THOUSANDS OF CITIZENS INTO EMPOWERING NONPROFIT FAT CATS DENIED THE FREE PUBLICITY THE LIBERAL MEDIA REGULARLY BESTOW ON THEIR PET CAUSES THE CONSERVATIVE THINK TANKS HAVE APPEALED TO THEIR CONSTITUENCIES WITH DIRECT MAIL AND GRASSROOTS ORGANIZATIONS INCLUDING HORRORS CHURCHES FINALLY BECAUSE MOST CONSERVATIVES HOLD JOBS WITH NO BUILTIN PUBLIC FORUM THEY HAVE GENEROUSLY ENSURED THAT THE MEN AND WOMEN FIGHTING THE IDEOLOGICAL BATTLE HAVE SALARIES COMPARABLE TO THEIR LIBERAL COUNTERPARTS IN THE NEWS MEDIA THERE IS NOTHING SINISTER IN THIS EXCEPT THAT LIBERALS ARE OFFENDED BY HOW WELL IT WORKS 9401270084 940127 POLITICS & POLICY WHITE HOUSE PLANS NLRB NOMINATION LIKELY TO FREE UP VOTE ON STALLED NAMES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS READY TO BREAK THE GRIDLOCK OVER THE CHAIRMANSHIP OF THE NATIONAL LABOR RELATIONS BOARD ADMINISTRATION AND CONGRESSIONAL SOURCES SAID THE WHITE HOUSE WILL NOMINATE WASHINGTON MANAGEMENT LAWYER CHARLES COHEN TO THE BOARD A MOVE THAT WOULD PROD REPUBLICANS INTO RELEASING THEIR HOLD ON THE CONFIRMATION OF STANFORD UNIVERSITY LAW PROF WILLIAM GOULD IV AS CHAIRMAN THE ANNOUNCEMENT OF MR COHEN'S NOMINATION IS EXPECTED AS EARLY AS TODAY IT WOULD COME JUST TWO DAYS AFTER THE WHITE HOUSE NAMED JOHN TRUESDALE NLRB EXECUTIVE SECRETARY TO THE BOARD AS AN INTERIM APPOINTMENT A STEP THAT RESTORED A QUORUM TO THE PANEL THE FIVEMEMBER BOARD HAD BEEN UNABLE TO HEAR CASES FOR MORE THAN A MONTH SINCE THE PANEL DWINDLED TO TWO MEMBERS IN JUNE PRESIDENT CLINTON NOMINATED PROF GOULD TO JOIN THE BOARD AND THEN SAID HE PLANNED TO TAP HIM AS CHAIRMAN THE NOMINATION WAS QUICKLY CONFIRMED BY THE SENATE LABOR COMMITTEE BUT IT WAS THEN BLOCKED FROM A FLOOR VOTE BY REPUBLICANS WORRIED ABOUT PROF GOULD'S PROUNION WRITINGS REPUBLICANS ALSO DEMANDED THAT THE OPEN POST BE FILLED WITH A PROMANAGEMENT LAWYER TRADITIONALLY NO MORE THAN THREE MEMBERS OF THE NLRB HAVE BEEN FROM A SINGLE POLITICAL PARTY SINCE THE WHITE HOUSE HAS FILLED ITS SLATE OF DEMOCRATS THE REMAINING OPEN SEAT MUST GO TO A REPUBLICAN OR INDEPENDENT REPUBLICANS LED BY SEN NANCY KASSEBAUM OF KANSAS THE COMMITTEE'S RANKING MINORITY MEMBER SENT A STRING OF NAMES TO THE WHITE HOUSE SEEKING SOMEONE TO REPRESENT MANAGEMENT VIEWS PROF GOULD FOR HIS PART HAS VOWED TO EXAMINE ALL CASES STRAIGHT DOWN THE MIDDLE THE REPUBLICANS ALSO WOULDN'T ALLOW ACTION ON THE NOMINATIONS OF PHILADELPHIA LAWYER MARGARET BROWNING TO JOIN THE BOARD OR ON HOUSE LABOR COUNSEL FRED FEINSTEIN TO BE GENERAL COUNSEL THE NOMINATION OF MR COHEN A PARTNER AT THE WASHINGTON FIRM OF OGLETREE DEAKINS NASH SMOAK & STEWART WOULD BREAK THE LOGJAM THE PAPERWORK ON MR COHEN IS EXPECTED TO TAKE SEVERAL WEEKS TO COMPLETE AND THEN ALL THE NOMINEES WOULD BE CONFIRMED IN A BLOCK MR COHEN 48 YEARS OLD WORKED AT THE BOARD FROM 1971 TO 1979 EVENTUALLY REACHING THE POST OF DEPUTY REGIONAL ATTORNEY IN PHILADELPHIA HE THEN JOINED THE LAW FIRM VEDDER PRICE KAUFMAN KAMMHOLZ & DAY BEFORE GOING TO OGLETREE IN 1990 HE COULDN'T BE REACHED TO COMMENT ON THE EXPECTED NOMINATION 9401270083 940127 LETTERS TO THE EDITOR WORTHEN DISPUTES IMPLIED LINKAGES YOUR JAN 18 LEAD EDITORIAL FOUNTAIN OF TRUST STATES THAT WORTHEN IS CONTROLLED BY THE STEPHENS FAMILY THIS STATEMENT IS FALSE SEVERAL STEPHENS FAMILY MEMBERS AND TRUSTS IF AGGREGATED CURRENTLY OWN APPROXIMATELY 26 OF THE OUTSTANDING SHARES HOWEVER THEY DO NOT CONTROL THE MANAGEMENT POLICIES LENDING OR OPERATIONS OF WORTHEN NO STEPHENS FAMILY MEMBERS OR NOMINEES SIT ON WORTHEN'S BOARD OF DIRECTORS OR HOLD ANY OFFICER POSITION WITH WORTHEN ALL DIRECTORS OF WORTHEN ARE ELECTED BY THE STOCKHOLDERS AT LARGE AND REPRESENT ALL STOCKHOLDERS FOURTEEN OF WORTHEN'S 15 DIRECTORS ARE OUTSIDE INDEPENDENT DIRECTORS ONLY ONE WORTHEN DIRECTOR ALSO SERVES AS AN OFFICER OF WORTHEN THIS GROUP OF DISTINGUISHED AND ACCOMPLISHED INDIVIDUALS REPUDIATES THE SUGGESTION THAT ANY ATTEMPT HAS BEEN MADE BY ANY STEPHENS FAMILY MEMBER TO INAPPROPRIATELY INFLUENCE THE ACTIVITIES OF WORTHEN IN THE SAME SENTENCE IN WHICH YOUR EDITORIAL INACCURATELY ATTRIBUTES CONTROL OF WORTHEN TO THE STEPHENS FAMILY YOU ALSO STATE THAT WORTHEN MADE LOANS TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE AND HELD A LIEN ON JAMES MCDOUGAL'S MADISON GUARANTY STOCK IN A THINLY VEILED ATTEMPT TO IMPLY THAT THE TWO LOAN TRANSACTIONS WERE RELATED TO EACH OTHER IN FACT THESE LOAN TRANSACTIONS ARE NOT RELATED TO EACH OTHER AND ARE SEPARATED IN TIME BY A PERIOD OF 10 YEARS FURTHERMORE THE LOAN TO MR MCDOUGAL AND THE ATTENDANT TAKING OF THE LIEN WAS INITIATED IN 1982 PRIOR TO THE TIME THAT ANY STEPHENS FAMILY MEMBER OWNED ANY SHARES IN WORTHEN ADDITIONALLY NO CURRENT MEMBER OF WORTHEN'S EXECUTIVE MANAGEMENT TEAM WAS IN EXECUTIVE MANAGEMENT OF WORTHEN WHEN THAT LOAN WAS APPROVED OR MADE FOR THE SAKE OF PERSPECTIVE THE OUTSTANDING BALANCE OF MR MCDOUGAL'S LOAN NEVER EXCEEDED 250000 THE VALUE OF WORTHEN'S LIEN ON THE MADISON GUARANTY STOCK WAS IRRETRIEVABLY DESTROYED IN 1987 WHEN MADISON GUARANTY WAS TAKEN OVER BY THE REGULATORS THE LOAN EXTENDED TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE WAS ORIGINATED LONG AFTER MADISON GUARANTY HAD CEASED TO EXIST THE CAMPAIGN LOAN WAS APPROVED AND MADE BY CURRENT MANAGEMENT ON A SOUND BANKING BASIS SECURED BY CAMPAIGN MATCHING FUNDS PAYABLE BY THE US TREASURY AND WAS PAID IN FULL AS AGREED IN JULY OF 1992 THE INTEREST RATE CHARGED TO THE CAMPAIGN COMMITTEE WAS THE MAXIMUM RATE ALLOWED BY ARKANSAS LAW TEN YEARS ELAPSED BETWEEN THE MAKING OF THESE TWO LOANS CONTRARY TO THE INTENDED IMPLICATIONS OF YOUR EDITORIAL ABSOLUTELY NO RELATIONSHIP EXISTS BETWEEN THE LOAN TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE AND THE LOAN TO MR MCDOUGAL OR FOR THAT MATTER BETWEEN EITHER OF THOSE LOANS AND THE STEPHENS FAMILY'S OWNERSHIP INTEREST IN WORTHEN WE DISAGREE WITH THE THOUGHT THAT SUCH INACCURACIES INNUENDOES AND PHANTOM LINKAGES CAN CONTINUE TO BE MADE WITHOUT CONSEQUENCE FUTURE PUBLICATIONS THAT ASSERT OR IMPLY THE EXISTENCE BETWEEN WORTHEN AND STEPHENS FAMILY MEMBERS OF RELATIONSHIPS THAT DO NOT IN FACT EXIST OR THAT SUGGEST A LINKAGE BETWEEN THE 1992 LOAN TO THE CLINTON CAMPAIGN COMMITTEE AND A 1982 LOAN TO MR MCDOUGAL WILL BE VIEWED AS ATTEMPTS TO INTENTIONALLY MISLEAD THE PUBLIC AND DAMAGE THE REPUTATION OF WORTHEN 9401270082 940127 COMMUTING VIA INFORMATION SUPERHIGHWAY BY JOEL KOTKIN LOS ANGELES SOMETIMES IT SEEMS IT TAKES AN EARTHQUAKE TO SHAKE THINGS UP THE BREAKDOWN OF THE FREEWAY SYSTEM HERE PRESENTS COMPANIES IN BOTH THIS REGION AND OTHERS A SIGNAL OPPORTUNITY TO EXPERIMENT WITH MORE DECENTRALIZED WAYS TO CONDUCT BUSINESS SUCH AS TELECOMMUTING IT IS NOT INAPPROPRIATE THAT THE LOS ANGELES AREA SERVE AS EPICENTER FOR THE LATEST SHIFT IN WORKPLACE REALITIES NEARLY A HALFCENTURY AGO SOUTHERN CALIFORNIA SPAWNED THE FREEWAY ERA THAT ENCOURAGED AN EVERWIDENING SEPARATION BETWEEN WORKPLACE AND LIVING SPACE EVEN BEFORE THE EARTHQUAKE THIS DEPENDENCE ON FREEWAYS WAS OVERSTRETCHING THE REGION'S ECONOMIC LIFELINES IN THE INLAND EMPIRE REGION ENCOMPASSING SAN BERNARDINO AND RIVERSIDE COUNTIES NEARLY 300000 PEOPLE COMMUTE DAILY TO WORKPLACES IN ORANGE AND LOS ANGELES COUNTIES THAT COMMUTE NORMALLY TAKES UP TO AN HOUR EVEN WITHOUT THE FREEWAY DAMAGE FROM THE QUAKE IT WAS EXPECTED TO GROW BY AT LEAST HALF AN HOUR BY DECADE'S END GIVEN THE LOCATION OF THE BREAKS IN THE FREEWAY SYSTEM EVEN WORSE COMMUTES AWAIT TRAVELERS FROM OTHER OUTLYING BEDROOM SUBURBS NOTABLY IN THE SANTA CLARITA AND SIMI VALLEYS TO RELIEVE THIS PRESSURE SOME PUBLIC POLICY EXPERTS HAVE LONG SUGGESTED MASSIVE INVESTMENT IN NEW TRAIN AND OTHER PUBLIC TRANSIT SYSTEMS YET THEY HAVE AT LEAST UNTIL NOW LARGELY IGNORED MORE FLEXIBLE LESS EXPENSIVE AND INDIVIDUALIZED ALTERNATIVES TO A LARGE EXTENT THE FIXATION ON RAIL TRANSPORTATION REFLECTS AN ARCHAIC VISION OF AN ECONOMY DOMINATED BY HIGHLY CONCENTRATED HIGHRISE OFFICE MARKETS WITH OVER 90 OF JOBS LOCATED OUTSIDE THE CENTRAL BUSINESS DISTRICTS IN MOST AMERICAN CITIES RIDING THE TRAIN DOWNTOWN DOES NOT PRESENT A WORKABLE ALTERNATIVE INSTEAD SOLUTIONS SUCH AS PRIVATE JITNEY VANS OR TELECOMMUTING OFFER A FAR BETTER MEANS OF GETTING WORK DONE WHILE REDUCING STRESS ON AN ALREADY OVERSTRETCHED TRANSPORT SYSTEM TELECOMMUNICATIONS AND COMPUTER TECHNOLOGIES NOW MAKE IT POSSIBLE FOR MANY WORKERS TO DO THEIR JOBS SUCCESSFULLY WITHOUT LEAVING THEIR HOMES OR BY SIMPLY VISITING LOCAL TELECOMMUTING CENTERS THIS HAS FUELED AN EXPLOSION OF TELECOMMUTERS TO MORE THAN 83 MILLION AMERICANS TODAY FROM ROUGHLY FOUR MILLION IN 1990 ACCORDING TO TELECOMMUNICATIONS CONSULTANCY LINK RESOURCES THE LA EARTHQUAKE AS WELL AS THE RECENT COLD WEATHER IN THE NORTHEAST AND MIDWEST THAT CLOSED SCORES OF MAJOR BUSINESSES INCLUDING THE FEDERAL GOVERNMENT IN WASHINGTON ARE LIKELY TO MAKE THIS ALTERNATIVE SEEM ALL THE MORE ATTRACTIVE JACK NILLES THE LOS ANGELES CONSULTANT WIDELY CREDITED WITH INVENTING THE TERM TELECOMMUTING SAYS AT LEAST HALF THE WORK FORCE IN SOUTHERN CALIFORNIA COULD TELECOMMUTE AT LEAST TWICE A MONTH HE ALSO CLAIMS THAT COMPANIES CAN SAVE MORE THAN 8000 A YEAR FOR EACH MIDLEVEL EMPLOYEE WHO BECOMES A REGULAR TELECOMMUTER ALREADY SOME FIRMS SUCH AS AD AGENCY CHIAT/DAY IN VENICE CALIF HAVE EXPERIMENTED WITH THIS NEW WORK STYLE THEY HAVE TRANSFORMED THEIR HEADQUARTERS FROM A COMPULSORY DAILY DESTINATION TO A LOCALE LARGELY FOR NECESSARY SOCIAL AND CONSULTATIVE FUNCTIONS NANCY EISER IS TRANSPORTATION PROGRAM MANAGER FOR THE LOS ANGELES COUNTY GOVERNMENT AND HAS CONSULTED WITH OVER 200 FIRMS IN THE REGION HER EXPERIENCE WITH THE COUNTY'S 2600 TELECOMMUTERS SHOULD COMMAND THE ATTENTION OF PRIVATESECTOR EMPLOYERS WHOSE MIDDLE MANAGERS SHE SAYS HAVE TO GET PAST THE NOTION THAT YOU HAVE TO PUNCH IN AND BE THERE TO WORK THE COUNTY ASSESSOR'S OFFICE FOR EXAMPLE FOUND TELECOMMUTERS PROCESSED THEIR WORK 64 FASTER THAN OFFICEBOUND EMPLOYEES AND THAT OVERALL PRODUCTIVITY ROSE 34 ONCE TELECOMMUTING WAS INSTITUTED BUT PRODUCTIVITY IS NOT TELECOMMUTING'S ONLY BENEFIT BY CUTTING BACK ON AUTO EMISSIONS THE SOURCE OF 60 OF THE BASIN'S SMOG TELECOMMUTING COULD ALSO REDUCE THE NEED FOR THE DRACONIAN STEPS PROPOSED BY THE ENVIRONMENTAL PROTECTION AGENCY AND THE LOCAL POLLUTION POLICE THE AIR QUALITY MANAGEMENT DISTRICT THE DEMANDS BY AQMD BUREAUCRATS FOR RIDESHARING AND OTHER SMOGABATING STEPS HAVE BEEN AMONG THE KEY ELEMENTS DRIVING BUSINESSES OUT OF THE REGION FINALLY THE SPREAD OF TELECOMMUTING ALSO HOLDS STRONG SOCIAL BENEFITS AS MANY AS 55 OF WOMENOWNED BUSINESSES OPERATE FROM HOME HOMEBASED ENTERPRISES AND TELECOMMUTING ALLOW PEOPLE TO EARN INCOMES WHILE SPENDING MORE TIME WITH THEIR CHILDREN THEY ALSO ROOT WORKERS MORE DEEPLY IN THEIR COMMUNITIES SOMETHING THAT COULD HELP COUNTER THE ANOMIE ASSOCIATED WITH COMMUTER SUBURBS YET DESPITE THESE BENEFITS SUCH INNOVATIONS WILL LIKELY AROUSE OPPOSITION FROM SOCIAL ENGINEERS BOTH HERE IN CALIFORNIA AND ELSEWHERE WHO REMAIN ENAMORED OF THE OLD CENTRALIST ORDER THEY ALSO RUN AGAINST THE INTERESTS OF LOCAL POLITICIANS WHO SEE IN A MASSIVE INVESTMENT IN PUBLIC TRANSIT A MEANS TO PROVIDE JOBS FOR DEFENSE WORKERS AND AEROSPACE EMPLOYERS ANOTHER ARGUMENT AGAINST THE RESTRUCTURING OF WORK STEMS FROM FEARS THAT SUCH CHANGES COULD DEVASTATE THE REMNANTS OF INNERCITY ECONOMIES BUT INSTEAD OF BATTLING THE FUTURE CITIES LIKE LOS ANGELES AND NEW YORK SHOULD SEEK TO ADJUST TO THE NEW ECONOMIC REALITIES TO DO THIS THEY MUST RELEARN WHAT NATURAL HUMAN AND CULTURAL ADVANTAGES CITIES CAN EXPLOIT FOR THEIR ECONOMIC DEVELOPMENT NEW YORK FOR EXAMPLE STILL ATTRACTS MANY OF THE UNIQUELY SKILLED PEOPLE CRITICAL TO SUCH INDUSTRIES AS THE ARTS COMMUNICATIONS PUBLISHING AND FINANCIAL SERVICES THIS KIND OF CREATIVE HOTHOUSE ENVIRONMENT CANNOT BE DUPLICATED IN THE DULLER CLIMES OF A PLANO TEXAS OR PHOENIX MUCH THE SAME IS TRUE FOR SOUTHERN CALIFORNIA IN THE LOS ANGELES AREA FOR EXAMPLE THE FASTEST GROWING INDUSTRIES SUCH AS MEDICAL INSTRUMENTS SOFTWARE GARMENTS/TEXTILES AND FOREIGN TRADE RELY HEAVILY ON UNIQUE LOCAL FACTORS SUCH AS THE CONCENTRATION OF SPECIALIZED SUPPLIERS A LARGE DESIGN COMMUNITY AND ABUNDANT AND OFTEN QUITE SKILLED IMMIGRANT LABOR RATHER THAN BEING ENGINEERED BY PLANNERS TO BE CLOSER TO THE URBAN CORE SUCH INDUSTRIES REMAIN IN CITIES BECAUSE IT SERVES THEIR PURPOSES LOS ANGELES'S VAST FILM AND TELEVISION INDUSTRY FOR EXAMPLE RELIES HEAVILY ON HIGHLY SKILLED SELFEMPLOYED LONE EAGLES AS WELL AS ON AN UNPARALLELED AGGLOMERATION OF SMALL CRAFT PROVIDERS MANY OF WHOM LIVE RELATIVELY CLOSE TO THE PRODUCTION FACILITIES AND EVEN FOR THOSE WHO DO COME FROM THE OUTLYING REGIONS THE OFTEN ODD HOURS OF ENTERTAINMENT PRODUCTION LESSEN DEPENDENCE ON RUSHHOUR COMMUTES SUCH CLUSTERING IS ALSO INCREASINGLY CHARACTERISTIC OF A HOST OF TECHNOLOGY INDUSTRIES SUCH AS MEDICAL EQUIPMENT WHICH PROBABLY NOW EMPLOYS MORE ANGELENOS THAN AEROSPACE KINGSTON TECHNOLOGIES ONE OF THE FASTEST GROWING COMPUTER COMPANIES IN THE COUNTRY GETS THE BULK OF ITS SUPPLIES FROM LOCAL LARGELY IMMIGRANTBASED FIRMS CLUSTERED WITHIN A FEWMILE RADIUS OF ITS NORTHWESTERN ORANGE COUNTY HEADQUARTERS IN THIS MANNER THE RESTRUCTURING OF WORK PROVIDES A UNIQUE OPPORTUNITY FOR CITIES TO REINVENT THEIR ROLE ODDLY IN SOME WAYS THIS RECALLS NOTHING SO MUCH AS THE RENAISSANCE CITIES CENTERS FOR SPECIALIZED OFTEN HOMEBASED CRAFTS BUSINESSES AND IDEAL LOCALES FOR THE COSMOPOLITAN EXCHANGE THAT CANNOT BE DUPLICATED IN RURAL OR SMALLTOWN SETTINGS THIS MAY NOT BE THE HIGHLY CENTRALIZED WORLD IMAGINED BY THE SOCIAL ENGINEERS AND URBAN PLANNERS BUT IT MIGHT POINT TOWARD A WORKABLE FUTURE FOR THE NATION'S HARDPRESSED CITIES MR KOTKIN IS A FELLOW AT BOTH THE CENTER FOR THE NEW WEST AND THE PEPPERDINE UNIVERSITY BUSINESS SCHOOL HE HAS BEEN A TELECOMMUTER FOR NEARLY TWO DECADES 9401270081 940127 JACKSON'S SONY DEAL BIG TALK LITTLE ACTION BY MEG COX AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL JACKSON ENTERTAINMENT COMPLEX A MUCHBALLYHOOED JOINT VENTURE BETWEEN SINGER MICHAEL JACKSON AND SONY HAS FALLEN FAR SHORT OF ITS HYPE IN THE SPRING OF 1991 SONY CORP CONFIDENTLY PREDICTED THAT ITS NEW VENTURE WITH THE POP STAR WHOSE ALBUM THRILLER IS THE BESTSELLING RECORD OF ALL TIME WOULD PRODUCE MOVIES AS WELL AS RECORDS AND WOULD GENERATE RETAIL SALES OF ENTERTAINMENT SOFTWARE IN EXCESS OF 1 BILLION FOUR YEARS LATER WITH CHARGES OF CHILD MOLESTATION SWIRLING AROUND MR JACKSON SONY'S AMBITIOUS PLANS TO MAKE THE SINGER THE CENTERPIECE OF A PROFITABLE LONGTERM FRANCHISE HAVE FAILED MR JACKSON HAS SETTLED A CIVIL SUIT AGAINST HIM FOR A SUM SAID TO BE ABOUT 20 MILLION A CRIMINAL INVESTIGATION IS CONTINUING THOUGH SALES OF HIS RECORDS CONTINUE STRONG IT IS UNCLEAR WHEN AND IF HE WILL PRODUCE A NEW ALBUM BUT EVEN BEFORE THE CHARGES SURFACED MR JACKSON HADN'T DEVELOPED OTHER RECORDING STARS UNDER HIS OWN LABEL AS PROMISED MR JACKSON'S AMBITIOUS PLANS TO STAR IN A SERIES OF FANTASY MOVIES AIMED AT KIDS NEVER CAME TO FRUITION AND LAST YEAR A MOVIE AND TELEVISION DEVELOPMENT DEAL WITH SONY'S COLUMBIA PICTURES UNIT WAS QUIETLY ENDED AFTER PRODUCING NOTHING HIGHTECH VISUAL PROJECTS WITH SONY'S CONSUMER ELECTRONICS UNIT ALSO NEVER MATERIALIZED SONY WON'T COMMENT ON THE FINANCIAL IMPACT OF ITS BIG STAR'S TROUBLES THOUGH EXECUTIVES SAY SONY FACES NO SERIOUS RISK MOSTLY LOST OPPORTUNITY AND A TARNISHED ASSET SANDY GALLIN MR JACKSON'S BUSINESS MANAGER COULDN'T BE REACHED FOR COMMENT TO SOME OBSERVERS MICHAEL JACKSON IS AN EXAMPLE OF HOW MUCH HYPE LIES BEHIND THESE GLOSSY DEALS WITH STARS MOST DEALS SUCH AS THOSE STRUCK WITH MR JACKSON ARE REGARDED WITH SKEPTICISM EVEN WITHIN THE ENTERTAINMENT COMPANIES IN ORDER TO STROKE THE EGOS OF RECORDING STARS LIKE MR JACKSON PRINCE AND MADONNA AND GET THEM TO SIGN NEW RECORD CONTRACTS SONY AND TIME WARNER INC HAVE SET UP ENTERTAINMENT COMPANIES FOR THE ARTISTS AND PROMISED FUNDS FOR MOVIE DEVELOPMENT TIME WARNER EVEN MADE PRINCE A VICE PRESIDENT OF ITS WARNER BROS RECORD UNIT BUT MOST OF THE TIME THE RECORDING ARTISTS JUST KEEP ON MAKING ALBUMS AND MOVIE PROJECTS IF THERE ARE ANY DON'T MAKE MONEY AND THE PACTS TYPICALLY DON'T COST THE COMPANIES MUCH IF THE ARTISTS DON'T DELIVER THE ACTUAL COST TO SONY UNDER THE JACKSON PACT IS SAID BY PEOPLE CLOSE TO THE COMPANY TO BE 50 MILLION TO 60 MILLION AND MOST OF THAT WILL BE PAID ONLY AS EACH ALBUM IS DELIVERED SONY REPORTEDLY PAID MR JACKSON 18 MILLION AS A SIGNING BONUS FOR DANGEROUS THE FIRST OF SIX ALBUMS TO BE FOLLOWED BY 5 MILLION TO 8 MILLION REPORTS VARIED IN ADVANCES FOR EACH OF THE NEXT FIVE ALBUMS MR JACKSON WAS SUPPOSED TO GET 5 MILLION FOR EVERY MOVIE IN WHICH HE ACTED BUT SINCE HE HASN'T ACTED IN ANY SONY HASN'T HAD TO PAY IN MY MIND THERE IS VERY LITTLE IMPACT ON SONY AT THIS TIME JUST SOME LOST OPPORTUNITY DUE TO HIS INACTIVITY SAYS JOE SMITH A LONGTIME INDUSTRY EXECUTIVE NOW WORKING AS A MUSIC CONSULTANT TO BLOCKBUSTER ENTERTAINMENT CORP GOD KNOWS WHEN SONY WILL GET A RECORD OUT OF THIS GUY AGAIN HE'S VERY FRAGILE EMOTIONALLY AND EVEN UNDER THE BEST CIRCUMSTANCES HE ONLY DELIVERS AN ALBUM EVERY COUPLE YEARS ONE PART OF SONY'S LOST REVENUE AT LEAST SO FAR IS A GREATEST HITS ALBUM THAT WAS WIDELY EXPECTED TO BE ISSUED IN 1993 EARLY LAST FALL EXECUTIVES AT MR JACKSON'S LABEL EPIC WRESTLED WITH WHETHER TO RELEASE A MICHAEL JACKSON GREATEST HITS ALBUM IN TIME FOR CHRISTMAS LAST FALL AN ATTORNEY FOR MR JACKSON SAID THAT EPIC EXECUTIVES HAD ESTIMATED WORLDWIDE SALES FOR VOL 1 OF A GREATEST HITS PACKAGE AT 12 MILLION UNITS GENERATING REVENUE OF MORE THAN 75 MILLION THE COMPANY IS SAID TO HAVE A 5050 PROFIT SPLIT WITH MR JACKSON HE ALSO SAID VOL 1 WAS TO CONTAIN 11 HIT SONGS FROM OLD MICHAEL JACKSON ALBUMS PLUS THREE NEW SONGS WHICH WOULD HELP GET RADIO EXPOSURE FOR THE ALBUM IN ANY CASE EPIC FINALLY ANNOUNCED AS THE SEX ALLEGATIONS WERE BEING MADE THAT DUE TO MICHAEL JACKSON'S HECTIC TOURING SCHEDULE HE WAS NOT ABLE TO COMPLETE RECORDING FOR THE GREATEST HITS RECORD SO IT HAS BEEN POSTPONED TO NEXT YEAR SONY CAN TAKE CONSOLATION FROM THE FACT THAT ITS MUSIC COMPANY IS IN BETTER SHAPE THAN IT WAS AT THE TIME IT SIGNED MR JACKSON'S CONTRACT SONY'S LABELS ENDED 1993 WITH THEIR BIGGEST MARKET SHARE EVER WITH A STRONG ARTIST ROSTER THAT INCLUDES SUCH ACTS AS GRUNGE ROCKERS PEARL JAM AND VETERAN SUPERSTAR BILLY JOEL MICHAEL SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN WHICH TALLIES ALBUM SALES AT STORES NATIONWIDE NOTES THAT MR JACKSON'S DANGEROUS HAS BEEN IN THE TOP 200 FOR 113 CONSECUTIVE WEEKS SINCE ITS 1991 DEBUT SELLING 54 MILLION COPIES IN THE US ALONE IN ONE WEEK IN LATE DECEMBER AT THE HEIGHT OF THE ALLEGATIONS DANGEROUS SOLD 18000 COPIES ACCORDING TO SOUNDSCAN 9401270080 940127 AZERBAIJAN OIL COMPANIES NEAR A DEVELOPMENT PACT ISTANBUL TURKEY A CONSORTIUM OF OIL COMPANIES IS CLOSE TO SIGNING AN AGREEMENT WITH AZERBAIJAN FOR THE 7 BILLION DEVELOPMENT AND EXPLOITATION OF TWO OFFSHORE OIL FIELDS IN THE CASPIAN SEA ACCORDING TO INDUSTRY OFFICIALS FOLLOWING MONTHS OF GIVE AND TAKE ON THE TERMS LAWYERS ARE DRAFTING THE FINAL LANGUAGE OF THE ACCORD EXPECTED TO BE READY FOR SIGNATURE WITHIN WEEKS VAHIT KUZUOGLU DEPUTY MANAGER OF TURKISH PETROLEUM CO ONE OF THE MEMBERS OF THE CONSORTIUM EXPECTS A PUBLIC STATEMENT TO BE MADE WHEN AZERI PRESIDENT GEIDAR ALIYEV VISITS ANKARA NEXT MONTH IT'S LONG PENDING HE SAID OIL COMPANIES CAUTION HOWEVER THAT THE TEDIOUS NEGOTIATING PROCESS COULD AGAIN BE STALLED BY POLITICAL TURMOIL IN THE FORMER SOVIET REPUBLIC AND OVER THE ISSUE OF WHETHER RUSSIA WILL END UP WITH A STAKE IN THE PROJECT A SPOKESMAN FOR BRITISH PETROLEUM PLC A LEADING CONSORTIUM MEMBER WOULD SAY ONLY THAT WE HOPE TO SEAL AN AGREEMENT SOMETIME THIS YEAR OTHER MEMBERS INCLUDE NORWAY'S STATOIL A/S AMOCO CORP PENNZOIL CO RAMCO OIL SERVICES INC UNOCAL CORP AND MCDERMOTT INTERNATIONAL INC 9401270079 940127 BUSINESS BRIEF SCHLUMBERGER LTD NET IN 4TH PERIOD FELL 20 ON CUTS IN SEISMIC OPERATION SCHLUMBERGER LTD CITING THE COST OF TRIMMING ITS SEISMIC OPERATIONS SAID FOURTHQUARTER NET INCOME FELL 20 THE OILFIELDSERVICES AND MEASUREMENTSYSTEMS CONCERN SAID EARNINGS FOR THE PERIOD WERE 124 MILLION OR 51 CENTS A SHARE COMPARED WITH 1541 MILLION OR 64 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 7 TO 175 BILLION FROM 163 BILLION SCHLUMBERGER STOCK ROSE YESTERDAY TO 58375 A SHARE UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE NEW YORKBASED COMPANY SAID THE CURRENT WEAKNESS IN THE PRICE OF OIL HAS CAST A MOOD OF UNCERTAINTY OVER THE UPSTREAM SPENDING OF OUR CUSTOMERS FOR THE YEAR SCHLUMBERGER'S NET FELL 49 TO 3348 MILLION INCLUDING A 248 MILLION CHARGE RELATED TO RETIREMENT BENEFITS FROM A YEAREARLIER 6616 MILLION REVENUE INCREASED 59 TO 671 BILLION FROM 633 BILLION 9401270078 940127 DIVIDEND NEWS NEW YORK BANCORP INC NEW YORK BANCORP INC DOUGLASTON NY DECLARED A 10 STOCK DIVIDEND PAYABLE FEB 14 TO STOCK OF RECORD FEB 4 THE BANK HOLDING COMPANY FOR HOME FEDERAL SAVINGS BANK ALSO SAID IT EXPECTS TO RAISE ITS NEXT QUARTERLY CASH DIVIDEND ON COMMON STOCK BY 10 IN APRIL TO MAINTAIN IT AT 20 CENTS A SHARE AFTER THE STOCK DIVIDEND 9401270077 940127 BUSINESS BRIEF LAFARGECOPPEE SA FRENCH FIRM SAYS IT WILL CONTINUE GROWTH STRATEGY LAFARGECOPPEE SA A FRENCH BUILDING MATERIALS GROUP PLANS TO CONTINUE ITS GROWTH STRATEGY WITH FIVE BILLION TO SEVEN BILLION FRANCS 842 MILLION TO 118 BILLION IN NEW INVESTMENTS ENVISIONED FOR 1994 CHAIRMAN BERTRAND COLLOMB SAID MR COLLOMB ALSO SAID THAT FOLLOWING LAST FALL'S RIGHTS ISSUE IN WHICH LAFARGE RAISED NEARLY THREE BILLION FRANCS IN FRESH CAPITAL AND AFTER A 120 MILLION RIGHTS ISSUE BY ITS US UNIT LAFARGE CORP THE GROUP'S NET DEBTTOEQUITY RATIO AT THE END OF 1993 WAS BELOW 30 LAFARGE'S DEBTTOEQUITY RATIO WAS NEARLY 45 AT THE END OF THE FIRST HALF OF 1993 9401270076 940127 BUSINESS BRIEF KPMG PEAT MARWICK AUSTRALIAN AFFILIATE TO PAY 97 MILLION TO SETTLE LAWSUIT KPMG PEAT MARWICK A MAJOR ACCOUNTING FIRM SAID THAT ITS AUSTRALIAN AFFILIATE WILL PAY 97 MILLION TO SETTLE A SUIT ALLEGING FAULTY AUDITS OF A STATEOWNED MERCHANT BANK THAT COLLAPSED FOUR YEARS AGO THE SETTLEMENT IS ONE OF THE BIGGEST EVER MADE BY AN ACCOUNTING FIRM IN AUSTRALIA ACCORDING TO ATTORNEYS FAMILIAR WITH AUDITNEGLIGENCE CASES IN 1992 THE AUSTRALIAN STATE OF VICTORIA SUED PEAT MARWICK HUNGERFORDS ALLEGING MALPRACTICE IN ITS AUDITS OF TRICONTINENTAL GROUP BANK A SUBSIDIARY OF THE STATE BANK OF VICTORIA THE BANK HAD LENT MONEY TO AUSTRALIAN BUSINESS PEOPLE WHO TRIED WITHOUT SUCCESS TO TAKE OVER CERTAIN US ENTERTAINMENT COMPANIES THE BANK COLLAPSED IN 1990 WITH 185 BILLION IN DEBT THE SUIT ALLEGED THAT PEAT MARWICK HUNGERFORDS FAILED TO DETECT THE BANK'S PROBLEMS IN TIME TO AVERT THE BANK'S FAILURE PEAT SAID THAT DESPITE THE SETTLEMENT WHICH IS COVERED BY INSURANCE IT DOESN'T ADMIT ANY WRONGDOING 9401270075 940127 BUSINESS BRIEF SUPERMAC TECHNOLOGY INC COMPANY ATTRIBUTES LOSS FOR 4TH QUARTER TO CHARGE SUPERMAC TECHNOLOGY INC REPORTED WORSETHANEXPECTED RESULTS POSTING A LOSS OF 99 MILLION ON SHARPLY HIGHER SALES OF 485 MILLION FOR THE FOURTH QUARTER SUPERMAC ATTRIBUTED THE LOSS TO A LARGER THAN EXPECTED 166 MILLION RESTRUCTURING CHARGE RELATED TO THE CONSOLIDATION OF PRODUCT DEVELOPMENT AND EXCESS FACILITIES FOR THE YEARAGO QUARTER THE COMPANY HAD NET OF 18 MILLION OR 23 CENTS A SHARE ON SALES OF 394 MILLION SHARES IN THE SUNNYVALE CALIF MAKER OF DESKTOP COLORGRAPHICS SYSTEMS ROSE 1 TO 1050 YESTERDAY IN NASDAQ STOCK MARKET TRADING AS INVESTORS BET THAT THE COMPANY HAD TAKEN A LARGE ENOUGH CHARGE TO POSITION ITSELF FOR PROFITABILITY BUT IN A CONFERENCE CALL WITH SECURITIES ANALYSTS MANAGEMENT SAID IT COULDN'T PREDICT WHETHER THE COMPANY WOULD REACH THE BLACK IN ITS CURRENT QUARTER 9401270074 940127 BUSINESS BRIEF RALLY'S HAMBURGERS INC GROUP OF SHAREHOLDERS SUE COMPANY SOME OFFICERS RALLY'S HAMBURGERS INC WHOSE PROFIT AND STOCK PRICE HAVE BEEN ON A DOWNWARD SLIDE SAID THE COMPANY AND SOME OFFICERS AND DIRECTORS WERE NAMED AS DEFENDANTS IN A LAWSUIT FILED BY A GROUP OF SHAREHOLDERS THE LOUISVILLE KY HAMBURGER CHAIN SAID THAT THE PLAINTIFFS PURPORT TO REPRESENT A CLASS OF RALLY'S SHAREHOLDERS WHO TRADED IN RALLY'S COMMON STOCK BETWEEN JULY 1992 AND SEPTEMBER 1993 THE COMPANY SAID THE SUIT FILED IN US DISTRICT COURT IN LOUISVILLE CLAIMS RALLY'S AND SOME OFFICERS AND DIRECTORS VIOLATED FEDERALSECURITIES LAWS DURING THAT PERIOD AND SEEKS UNSPECIFIED DAMAGES AND ATTORNEY'S FEES RALLY'S SAID IT DENIES THE ALLEGATIONS AND WILL DEFEND THE ACTION 9401270073 940127 SPARTA COMPLETES ACQUISITION PLEASANTON CALIF SPARTA SURGICAL CORP SAID ITS SPARTA MAXILLOFACIAL PRODUCTS INC UNIT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF CERTAIN ASSETS OF THE STORZ ORAL MAXILLOFACIAL PLATING BUSINESS FROM A UNIT OF AMERICAN CYANAMID CO FOR 16 MILLION SPARTA SURGICAL SAID 100000 WAS PAID AT CLOSING AND THE REMAINDER IS PAYABLE UNDER AN EIGHTYEAR PROMISSORY NOTE IN CONJUNCTION WITH THE ACQUISITION SPARTA ENTERED INTO A 10YEAR AGREEMENT WITH DAVIS & GECK ANOTHER UNIT OF AMERICAN CYANAMID FOR RESEARCH AND DEVELOPMENT OF AN ABSORBABLE PLATING SYSTEM TECHNOLOGY 9401270072 940127 INTERNATIONAL REPORT SAYS GOVERNMENTS KNEW OF BNL LOANS TO IRAQ ROME REUTER AN ITALIAN PARLIAMENTARY COMMISSION IN A 340PAGE REPORT SAID THAT ILLICIT LOANS TO IRAQ FROM ITALY'S BANCA NAZIONALE DEL LAVORO WERE PART OF A WIDER POLICY TO CHANNEL AID TO BAGHDAD DURING ITS WAR WITH IRAN AND THAT ROME AND WASHINGTON MUST HAVE KNOWN WHAT WAS GOING ON THE COMMISSION INVESTIGATED MORE THAN 4 BILLION IN LOANS TO IRAQ MADE BY BNL'S ATLANTA BRANCH THAT THE POLITICAL DIRECTION OF THE WHOLE OPERATION WAS ALWAYS FIRMLY BASED IN WASHINGTON IS EVIDENT THE REPORT SAID BUT THAT PERSONALITIES IN THE ITALIAN GOVERNMENT AND OF BNL WERE AWARE OF WHAT WAS HAPPENING OR HAD RECEIVED AUTHORITATIVE ADVICE NOT TO LOOK TOO CLOSELY AT THE ATLANTA BRANCH OPERATIONS IS MORE THAN A MERE THEORY IT IS NOW EVIDENT THAT THE AFFAIR CONSTITUTED AN AMERICAN POLITICAL SCANDAL THE REPORT ADDED BEFORE THE 1991 PERSIAN GULF WAR THE US TILTED TOWARD IRAQ AS A COUNTERWEIGHT TO IRAN BUT THE POLICY BACKFIRED WITH BAGHDAD'S 1990 INVASION OF KUWAIT LAST MONTH A US COURT SENTENCED THE MANAGER OF BNL'S ALTANTA BRANCH CHRISTOPHER DROGOUL TO 37 MONTHS IN PRISON FOR HIS ROLE IN GRANTING THE LOANS TO IRAQ DURING ITS 198088 WAR WITH IRAN MR DROGOUL MANAGED THE ATLANTA OFFICE FROM 1984 UNTIL IT WAS RAIDED BY THE FEDERAL BUREAU OF INVESTIGATION IN 1991 MOST OF THE LOANS WEREN'T AUTHORIZED BY SENIOR BNL MANAGERS AND MANY ILLEGALLY CARRIED US EXPORTIMPORT BANK GUARANTEES 9401270071 940127 BUSINESS BRIEF US LONG DISTANCE CORP PROBABLE FIRSTPERIOD LOSS TIED TO COSTS IN SEC PROBE US LONG DISTANCE CORP SAN ANTONIO SAID IT IS LIKELY TO REPORT A FIRSTQUARTER LOSS PARTLY BECAUSE OF ACCOUNTING AND LEGAL COSTS RELATED TO AN INFORMAL SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING THE LONGDISTANCE AND OPERATORSERVICES CONCERN MAINTAINS THAT ITS FINANCIAL STATEMENTS ARE FAIRLY STATED THE INQUIRY INVOLVES HOW US LONG DISTANCE ACCOUNTS FOR CERTAIN RECEIVABLES THAT IT ACQUIRES AFTER THE INQUIRY WAS DISCLOSED LAST MONTH THE COMPANY WAS SUED BY TWO SHAREHOLDERS ALLEGING IMPROPER ACCOUNTING US LONG DISTANCE CALLED THE SUITS UNFOUNDED THE COMPANY SAID ITS LOSS FOR ITS FIRST QUARTER ENDED DEC 31 COULD REACH FIVE CENTS A SHARE ANALYSTS HAD EXPECTED A PROFIT OF FIVE CENTS TO 11 CENTS A YEAR EARLIER PROFIT BEFORE A TAX BENEFIT TOTALED 548000 OR FIVE CENTS A SHARE US LONG DISTANCE LAST MONTH POSTPONED A PLANNED OFFERING OF 16 MILLION SHARES UNTIL THE SEC INQUIRY IS COMPLETED THE COMPANY SAID IT IS COOPERATING IN THE INVESTIGATION 9401270070 940127 BUSINESS BRIEF FLEET FINANCIAL GROUP INC BANK GETS 10YEAR CONTRACT TO PROCESS NEW YORK TAXES FLEET FINANCIAL GROUP INC PROVIDENCE RI SAID IT HAS BEEN AWARDED A 10YEAR CONTRACT BY NEW YORK'S DEPARTMENT OF TAXATION AND FINANCE TO PROCESS THE STATE'S 10 MILLION PERSONAL INCOME TAX RETURNS A SPOKESMAN FOR THE FINANCIAL SERVICES COMPANY ESTIMATED THE VALUE OF THE CONTRACT AT 197 MILLION THE CONTRACT INCLUDES REVIEWING RETURNS FOR COMPLETENESS AND DATA ENTRY FLEET ALSO WILL HANDLE THE DEPOSITING OF ESTIMATED TAX PAYMENTS AND EXPANDING THE ELECTRONIC INCOMETAX FILING SYSTEM THE SPOKESMAN SAID FLEET EXPECTS TO GRADUALLY PHASE IN THE NEW PROCESSING AND TO BE HANDLING ALL OF THE STATE'S TAX RETURNS BY THE END OF 1995 SEVERAL HUNDRED EMPLOYEES ARE EXPECTED TO BE HIRED 9401270069 940127 ARMCO TO LEAVE VENTURE WITH KAWASAKI THROUGH OFFERING OF STOCK AND DEBT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ARMCO INC PLANS TO VIRTUALLY ELIMINATE ITS INVOLVEMENT IN A CARBONSTEEL JOINT VENTURE WITH KAWASAKI STEEL CORP OF JAPAN BY ALLOWING THE VENTURE TO SELL SHARES TO THE PUBLIC THE MOVE WILL FREE ARMCO TO CONCENTRATE ITS RESOURCES ON ITS MORE PROFITABLE SPECIALITY STEEL BUSINESS STOCK IN THE JOINT VENTURE CALLED ARMCO STEEL CO IS BEING OFFERED TO THE PUBLIC NOW WHILE THE MARKET FOR STEEL IS STILL RELATIVELY STRONG AND THE VENTURE IS ON AN UPSWING STEEL STOCKS ARE MARKETABLE AT THE MOMENT SAID CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES IT COULD BE A GOOD OPPORTUNITY FOR ARMCO AND IN THE STEEL INDUSTRY YOU MAY ONLY GET THE CHANCE ONCE EVERY FIVE YEARS TO SELL STOCK BECAUSE OF THE INDUSTRY'S CYCLES ARMCO LAST YEAR SAID IT PLANNED TO KEEP THE JOINT VENTURE IN SPITE OF THE FACT THAT ITS ENTIRE INVESTMENT HAD BEEN WIPED OUT BY ARMCO STEEL'S LOSSES BUT JUST THIS MONTH ARMCO PRESIDENT JAMES F WILL WHOSE EXPERIENCE IS IN SPECIALTY STEEL SUCCEEDED ROBERT L PURDUM AS CHIEF EXECUTIVE OFFICER SUGGESTING THAT THE COMPANY WOULD ACCELERATE ITS SHIFT AWAY FROM CARBON STEEL UNDER THE PLAN THE VENTURE INTENDS TO SELL ABOUT 158 MILLION COMMON SHARES AT 20 EACH THROUGH AN INITIAL PUBLIC OFFERING AND 275 MILLION IN DEBT THROUGH A SENIOR NOTE OFFERING PROCEEDS WOULD BE USED TO RESTRUCTURE AND RECAPITALIZE THE VENTURE PRIMARILY BY REDUCING ITS DEBT AND UNFUNDED PENSION LIABILITY UNDER TERMS OF THE PLAN ARMCO'S OBLIGATIONS TO MAKE CERTAIN CASH PAYMENTS TO THE VENTURE WOULD BE ELIMINATED AND ITS OWNERSHIP REDUCED TO LESS THAN 1 KAWASAKI WOULD BE LEFT WITH A 216 STAKE MR WILL SAID IN A STATEMENT THE COMPANY HAD BEEN EXPLORING OPTIONS WITH KAWASAKI TO IMPROVE THE VENTURE'S FINANCIAL POSITION WHILE AT THE SAME TIME LIMITING ARMCO'S EXPOSURE LIABILITIES CUT WE BELIEVE THIS PROPOSED PLAN BENEFITS ALL DESPITE THE REDUCTION IN OUR EQUITY INTEREST HE SAID IT RELIEVES US OF ANY FURTHER CASH INFUSION AND ELIMINATES CERTAIN OUTSTANDING LIABILITIES TO THE VENTURE AND ANY DIRECT LIABILITY ASSOCIATED WITH THE BUSINESS OF THE NEW COMPANY THE LIABILITIES RELATE TO SUCH THINGS AS THE PURCHASE OF RAW MATERIALS THE PROPOSED RECAPITALIZATION IS EXPECTED TO BENEFIT ARMCO IN THE LONGER TERM BY SUBSTANTIALLY IMPROVING THE FINANCIAL CONDITION OF THE VENTURE MR WILL SAID HE NOTED THAT ARMCO WOULD MAINTAIN ACCESS TO THE VENTURE'S HOTSTRIP MILL THROUGH AN EXISTING LONGTERM AGREEMENT TO ROLL STAINLESS STEEL FOR ARMCO INC'S FINISHING FACILITIES THOMAS C GRAHAM WILL REMAIN AS CHIEF EXECUTIVE OFFICER OF THE NEWLY PUBLIC COMPANY MR GRAHAM WHO WAS CREDITED WITH TURNING AROUND USX CORP'S US STEEL GROUP WAS HIRED BY ARMCO STEEL IN 1992 TO TURN THE JOINT VENTURE AROUND BY CUTTING COSTS AND IMPROVING PRODUCTIVITY ANALYSTS SAY HE HAS SUCCEEDED AND THAT NOW IS THE TIME TO SELL THE VENTURE THE MARKET FOR CARBON STEEL USED IN EVERYTHING FROM AUTOMOBILES TO WASHING MACHINES HAS BENEFITED IN THE PAST YEAR FROM THE ECONOMIC UPTURN 9401270068 940127 BUSINESS BRIEF ALCAN ALUMINIUM LTD PLANT IN BRITISH COLUMBIA HIT BY STRIKE TO BE CLOSED ALCAN ALUMINIUM LTD SAID IT WILL CLOSE ITS RICHMOND BRITISH COLUMBIA FABRICATING PLANT IDLED SINCE LAST OCTOBER THE MONTREAL ALUMINUM MAKER SAID 92 UNIONIZED AND 20 NONUNION EMPLOYEES WILL BE AFFECTED THE UNIONIZED WORKERS HAD BEEN ON STRIKE SINCE LAST JULY STAFF EMPLOYEES CONTINUED OPERATING THE PLANT UNTIL OCTOBER THE PLANT HAS AN ANNUAL CAPACITY OF 28000 METRIC TONS OF ELECTRICAL ROD AND 6000 METRIC TONS OF EXTRUSIONS A METRIC TON IS 220462 POUNDS ALCAN SAID IT WILL OFFER A SEVERANCE PACKAGE AND REEMPLOYMENT ASSISTANCE TO ALL AFFECTED EMPLOYEES IT DECLINED TO ESTIMATE THE COST OF THE CLOSURE ALCAN HAS 44000 EMPLOYEES WORLDWIDE AND 46 FABRICATING MILLS IN NORTH AMERICA 9401270067 940127 BUSINESS BRIEF ALEX BROWN INC BROKERAGE FIRM'S EARNINGS ROSE 85 IN FOURTH QUARTER ALEX BROWN INC REPORTED FOURTHQUARTER NET INCOME JUMPED 85 TO 389 MILLION OR 242 A SHARE FROM 211 MILLION OR 137 A SHARE A YEAR EARLIER REVENUE AT THE BALTIMOREBASED BROKERAGE FIRM ROSE 71 TO 2188 MILLION FROM 1281 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALEX BROWN SHARES CLIMBED 1625 OR 67 TO 2575 FOR THE YEAR THE COMPANY REPORTED NET OF 892 MILLION OR 561 A SHARE A 52 INCREASE FROM 1992'S 586 MILLION OR 372 A SHARE REVENUE INCREASED 38 TO 6282 MILLION FROM 4557 MILLION ALEX BROWN SAID INVESTMENT BANKING REVENUE INCREASED 50 TO 2541 MILLION COMMISSION REVENUE GREW 21 TO 1317 MILLION AND PRINCIPAL TRANSACTION REVENUE ROSE 43 TO 1298 MILLION FROM 1992 9401270066 940127 BUSINESS BRIEF SHARPER IMAGE CORP RETAILER SEES 16 INCREASE IN FISCAL 4THQUARTER PROFIT SHARPER IMAGE CORP A RETAILER SAID IT EXPECTS NET INCOME FOR ITS FISCAL FOURTH QUARTER ENDING JAN 31 TO GROW BY 16 TO 5 MILLION COMPARED WITH 43 MILLION A YEAR EARLIER FOR THE FISCAL YEAR THE SAN FRANCISCOBASED COMPANY SAID IT EXPECTS EARNINGS OF 18 MILLION OR 20 CENTS A SHARE COMPARED WITH 359000 OR FOUR CENTS A SHARE A YEAR EARLIER SHARPER IMAGE ATTRIBUTED THE HIGHER EARNINGS TO INCREASED SALES IN ITS FOURTH QUARTER AND REDUCED EXPENSES SHARES OF THE RETAILER ROSE 625 CENTS OR 11 TO 625 IN NASDAQ STOCK MARKET TRADING 9401270065 940127 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK POOL OF ASSETS TO BE SOLD THRIFT POSTS 4THQUARTER NET DIME SAVINGS BANK OF NEW YORK SIGNED AN AGREEMENT TO SELL A POOL OF REALESTATE ASSETS FOR 2646 MILLION OR ABOUT 80 OF ITS ORIGINAL FACE VALUE DIME JOINS A GROWING NUMBER OF BANKS THAT TURNED TO SELLING PROBLEM LOANS IN BULK TO CLEAN UP BALANCE SHEETS AND IMPROVE FINANCIAL RATIOS THE THRIFT WHICH HAS ASSETS OF 93 BILLION ALSO REPORTED FOURTHQUARTER EARNINGS OF 177 MILLION OR 29 CENTS A SHARE COMPARED WITH A LOSS OF 179 MILLION OR 78 CENTS A SHARE WHILE THE ASSET SALE CONTRIBUTED TO A PRETAX LOSS OF 664 BILLION FOR THE QUARTER IT WAS OFFSET BY RECOGNITION OF DEFERRED TAXES OF 841 MILLION IN THE QUARTER AVERAGE COMMON SHARES OUTSTANDING MORE THAN DOUBLED SINCE 1992 9401270064 940127 LONDON FOG CORP HEADQUARTERS ELDERSBURG MD LONDON FOG CORP SAID IT WILL RELOCATE ITS CORPORATE HEADQUARTERS TO FAIRFIELD COUNTY CONN FROM ELDERSBURG THE COMPANY SAID IT EXPECTS TO SIGN A LETTER OF INTENT WITH THE DARIEN GREEN OFFICE COMPLEX IN DARIEN EARLY NEXT WEEK LONDON FOG SAID THE RELOCATION WILL TAKE PLACE WITHIN SIX MONTHS THE ELDERSBURG FACILITY WILL CONTINUE TO SERVE AS THE INTERNATIONAL OPERATIONAL HEADQUARTERS LONDON FOG SAID 9401270063 940127 BUSINESS BRIEF PAGING NETWORK INC COMPANY EXPECTS TO POST RISE IN OPERATING CASH FLOW PAGING NETWORK INC EXPECTS TO POST TODAY A 45 JUMP IN OPERATING CASH FLOW FOR THE FOURTH QUARTER TO ABOUT 29 MILLION FROM 20 MILLION A YEAR EARLIER IN AN INTERVIEW THE PAGING COMPANY'S PRESIDENT TERRY L SCOTT SAID PAGING NETWORK EXPECTS TO REPORT THAT REVENUE INCREASED 34 IN THE PERIOD TO 85 MILLION FROM 633 MILLION A YEAR AGO THE COMPANY LIKE MOST OTHER PAGING CONCERNS VIEWS OPERATING CASH FLOW EARNINGS BEFORE INTEREST INCOME TAXES DEPRECIATION AND AMORTIZATION AS ITS KEY PERFORMANCE MEASURE BECAUSE OF HEAVY UPFRONT MARKETING EXPENSES MR SCOTT SAID THE COMPANY WHICH IS BASED IN PLANO TEXAS EXPECTS TO REPORT A NET LOSS FOR THE QUARTER OF 47 MILLION OR NINE CENTS A SHARE COMPARED WITH A LOSS OF 42 MILLION OR 12 CENTS A SHARE A YEAR EARLIER HE SAID THE COMPANY CLOSED THE YEAR WITH 3070000 PAGERS IN SERVICE UP SHARPLY FROM 2077954 AT THE END OF 1992 9401270062 940127 BUSINESS BRIEF AMP INC FOURTHQUARTER NET ROSE DESPITE INTERNATIONAL WOES AMP INC SAID THAT DESPITE NEGATIVE EXCHANGERATE EFFECTS AND RECESSION IN SOME INTERNATIONAL MARKETS FOURTHQUARTER NET INCOME ROSE SLIGHTLY AND THE OUTLOOK FOR 1994 IS IMPROVING THE HARRISBURG PA MAKER OF ELECTRICAL AND ELECTRONIC CONNECTORS SAID PROFIT WAS 71 MILLION OR 68 CENTS A SHARE COMPARED WITH 703 MILLION OR 67 CENTS A SHARE A YEAR EARLIER SALES GREW 34 TO 873 MILLION FROM 8445 MILLION THE COMPANY SAID FIRSTQUARTER SALES COULD SET A RECORD AND NET SHOULD EXCEED THE 725 MILLION OR 69 CENTS A SHARE OF A YEAR EARLIER FOR THE YEAR AMP NET GREW 23 TO 297 MILLION FROM 2903 MILLION SALES ROSE 34 TO 345 BILLION FROM 334 BILLION AMP RAISED ITS QUARTERLY DIVIDEND TO 42 CENTS A SHARE FROM 40 CENTS A SHARE PAYABLE MARCH 1 TO SHAREHOLDERS OF RECORD FEB 7 9401270061 940127 ITT UNIT OPENS MEXICO PLANT AUBURN HILLS MICH ITT CORP'S ITT AUTOMOTIVE SUBSIDIARY OPENED A NEW FLUID HANDLING SYSTEMS FACILITY IN GUAYMAS MEXICO ITT AUTOMOTIVE SAID THE FACILITY WILL PRODUCE VACUUM AIR SUSPENSION AND SEAT BOLSTER INFLATION HARNESS COMPONENTS FOR CUSTOMERS IN MEXICO AND THE US ROBERT ZIMCOSKY HAS BEEN NAMED PLANT MANAGER MR ZIMCOSKY WAS FORMERLY WITH ITT AUTOMOTIVE FLUID HANDLING SYSTEMS IN OSCODA MICH THE COMPANY SAID 9401270060 940127 BUSINESS BRIEF T ROWE PRICE ASSOCIATES INC INVESTMENT ADVISER'S PROFIT ROSE 53 IN FOURTH QUARTER T ROWE PRICE ASSOCIATES INC SAID THE MUTUAL FUND BOOM PARTICULARLY IN THE INTERNATIONAL ARENA HELPED LIFT FOURTHQUARTER NET INCOME 53 TO 147 MILLION OR 48 CENTS A SHARE FROM 96 MILLION OR 32 CENTS A SHARE A YEAR AGO REVENUE ROSE 38 TO 899 MILLION FROM 654 MILLION THE BALTIMOREBASED COMPANY WHICH SERVES AS INVESTMENT ADVISER TO MUTUAL FUNDS AND OTHER CLIENTS SAID NET INCOME FOR THE FULL YEAR ROSE 36 TO 485 MILLION OR 159 A SHARE FROM 358 MILLION OR 119 A SHARE THE 1993 RESULTS INCLUDED A CHARGE OF ONE CENT A SHARE FROM ACCOUNTING CHANGES REVENUE FOR THE YEAR GREW 27 TO 310 MILLION FROM 2451 MILLION THE RESULTS EXCEEDED ANALYSTS' ESTIMATES IN A STATEMENT THE COMPANY SAID IT IS OPTIMISTIC ABOUT ITS FUTURE PROSPECTS CITING ITS STRENGTH IN OVERSEAS MARKETS T ROWE PRICE STOCK CLOSED AT 2975 UP 1 IN NASDAQ STOCK MARKET TRADING 9401270059 940127 LAW LEGAL BEAT POSNER FIGHTS BAN ON RUNNING PUBLIC FIRMS AS HIS HOLDINGS RISE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL VICTOR POSNER IS FIGHTING A JUDGE'S ORDER BARRING HIM FROM RUNNING ANY PUBLICLY TRADED COMPANY BUT IN THE MEANTIME THE BAN APPEARS TO HAVE BOOSTED THE VALUE OF HIS STOCK PORTFOLIO BY AS MUCH AS 26 MILLION A FEDERAL JUDGE ORDERED THE UNPRECEDENTED BAN ON DEC 1 CITING MR POSNER'S PREVIOUS RUNINS WITH SECURITIES REGULATORS AND CALLING THE FINANCIER CONTEMPTUOUS OF THE INTERESTS OF PUBLIC SHAREHOLDERS THE SECURITIES AND EXCHANGE COMMISSION SOUGHT THE HARSH PENALTY IN CONNECTION WITH MR POSNER'S ALLEGED ROLE IN AN ILLEGAL STOCKBUYING SCHEME INVOLVING IVAN BOESKY AND MICHAEL MILKEN THE ORDER REQUIRED THAT MR POSNER STEP DOWN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SALEM CORP THE ONLY PUBLICLY TRADED COMPANY AT WHICH HE WAS AN OFFICER AT THE TIME SALEM'S STOCK PRICE JUMPED 15 ON THE DAY OF THE JUDGE'S ORDER WHICH WAS REPORTED EARLY IN THE AFTERNOON AND IT HAS CONTINUED TO CLIMB CURRENTLY THE STOCK PRICE ADJUSTED FOR A STOCK SPLIT EARLIER THIS MONTH IS 23 HIGHER THAN IT WAS TRADING JUST BEFORE THE COURT RULING MR POSNER'S 492 STAKE IN THE INDUSTRIALEQUIPMENT COMPANY MAKES HIM THE BIGGEST BENEFICIARY OF THE STOCKPRICE INCREASE UNDER JUDGE MILTON POLLACK'S ORDER MR POSNER RETAINS ALL ECONOMIC BENEFIT FROM HIS SALEM SHARES THOUGH THEY WILL BE HELD BY AN INDEPENDENT TRUST SO THAT MR POSNER CANNOT HAVE ANY SAY IN HOW THE SHARES ARE VOTED A SPOKESWOMAN FOR SALEM AND FOR MR POSNER SAID THE RISE IN THE STOCK PRICE HAS HAD NOTHING TO DO WITH THE COURT ORDER INSTEAD SHE SAID MR POSNER AND COMPANY OFFICIALS BELIEVE THE INCREASE REFLECTS IMPROVEMENTS IN THE COMPANY'S BUSINESS AND A 60CENTASHARE ANNUAL DIVIDEND THAT WAS APPROVED BY THE BOARD ON DEC 13 THE STOCK PRICE HAD CLIMBED ABOUT 20 IN THE FOUR MONTHS BEFORE THE COURT ORDER TOO IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SALEM SHARES CLOSED 1525 UNCHANGED THE SPOKESWOMAN SAID THAT MR POSNER BELIEVES IN THE STOCK AND PLANS TO CONTINUE HOLDING HIS STAKE MR POSNER'S APPEAL OF THE COURTORDERED BAN AVOIDS THE ISSUE OF HOW THE MARKET HAS RESPONDED SINCE HIS REMOVAL FROM A LEADERSHIP ROLE AT THE COMPANY THE IMPROVED STOCK PRICE ISN'T THE ISSUE HERE SAID DENNIS BLOCK AN ATTORNEY FOR MR POSNER AT THE NEW YORK LAW FIRM OF WEIL GOTSHAL & MANGES IN A BRIEF FILED IN FEDERAL APPEALS COURT IN NEW YORK MR POSNER'S LAWYERS ARGUED THAT THE DEC 1 ORDER BY JUDGE POLLACK DISENFRANCHISES THE SHAREHOLDERS THE ELECTION OF DIRECTORS WHO IN TURN APPOINT CORPORATE OFFICERS IS A FUNDAMENTAL INCIDENT OF SHAREHOLDERS' RIGHTS MR POSNER'S BRIEF SAID WHETHER THE SEC THE TRIAL COURT OR EVEN THE APPEALS COURT WOULD VOTE FOR THE POSNERS IS NOT THE ISSUE THE ISSUE IS WHETHER SHAREHOLDERS SHOULD BE GIVEN THE OPPORTUNITY TO MAKE UP THEIR OWN MINDS MR POSNER'S SUPPORTERS SAY THAT THE CURRENT STOCK PRICE ISN'T THE ONLY FACTOR THAT HAS TO BE CONSIDERED IN EVALUATING THE IMPACT A TOP EXECUTIVE HAS ON A COMPANY IN A COURT DOCUMENT FILED BEFORE THE APPEALS COURT PHILLIP H SMITH A SALEM DIRECTOR URGED THE COURT TO ALLOW MR POSNER TO CONTINUE SERVING THE COMPANY IT IS MY OPINION THAT HE HAS KEEN INSIGHT AND AN ABILITY TO FOCUS ON KEY BASIC ISSUES THAT OTHERS MIGHT OVERLOOK HE IS ENCOURAGING AND SUPPORTING LONGRANGE PLANNING INITIATIVES WHICH ARE VITAL TO THE CORPORATION AND TO THE ENHANCEMENT OF SHAREHOLDERS' VALUES MR SMITH SAID IN THE COURT DOCUMENT SEC OFFICIALS HOWEVER SAY THEY BELIEVE THE CHANGES IN THE STOCK PRICE REFLECT THE MARKET'S RELIEF THAT MR POSNER NO LONGER IS RUNNING SALEM IN THE WAKE OF THE RULING SAID BARRY GOLDSMITH CHIEF LITIGATOR FOR THE SEC THE MARKETPLACE HAS REACTED FAVORABLY SALEM ISN'T THE ONLY INSTANCE IN WHICH MR POSNER'S REMOVAL FROM A COMPANY APPEARED TO BOOST ITS STOCK PRICE IN A SEPARATE CASE INVOLVING DWG CORP ANOTHER POSNERCONTROLLED COMPANY THE STOCK PRICE MORE THAN QUADRUPLED IN THE TWO YEARS AFTER A CONSENT DECREE WITH SHAREHOLDERS WAS ANNOUNCED IN 1991 REMOVING MR POSNER FROM ANY ACTIVE ROLE IN THE COMPANY NOW KNOWN AS TRIARC COS ON APPEAL IN THE SALEM CASE MR BLOCK MAINTAINS THAT JUDGE POLLACK EXCEEDED HIS AUTHORITY BY APPROVING THE HARSH PENALTY AND THAT THE LAW PROVIDING SUCH MEASURES CAN'T BE APPLIED TO MR POSNER MR BLOCK ALSO ARGUES THAT MR POSNER DID NOTHING WRONG AND THAT THE SEC DIDN'T ADEQUATELY BACK UP ITS ALLEGATIONS AGAINST THE 74YEAROLD MR POSNER THERE WAS NO BASIS FOR JUDGE POLLACK'S DECISION MR BLOCK SAID MR POSNER RESIGNED HIS POSITIONS AT SALEM ON JAN 4 AND PENDING HIS APPEAL HAS TURNED OVER 36 MILLION SOUGHT BY THE SEC IN ALLEGEDLY ILLEGAL PROFITS 9401270058 940127 QUARTERLY PROFIT IS POSTED AT UNITED TECHNOLOGIES CORP BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP REPORTED A FOURTHQUARTER PROFIT REVERSING A YEAREARLIER NET LOSS EARNINGS ROSE 37 IF ONETIME CHARGES ARE EXCLUDED FROM THE 1992 PERIOD BUT THE HARTFORD CONN COMPANY SAID THE CONTINUED WEAKNESS IN ITS AEROSPACE BUSINESS WHICH INCLUDES ITS PRATT & WHITNEY JET ENGINE UNIT MAY RESULT IN EMPLOYMENT REDUCTIONS BEYOND THE PREVIOUSLY ANNOUNCED RESTRUCTURING THE COMPANY'S FOURTHQUARTER PROFIT OF 136 MILLION OR 98 CENTS A PRIMARY SHARE WAS IN LINE WITH ANALYSTS' EXPECTATIONS IN THE 1992 FOURTH QUARTER THE COMPANY HAD A NET LOSS OF 333 MILLION OR 277 A SHARE BEFORE THE ONETIME CHARGES RELATED TO ITS EXPOSURE TO THE COMMERCIAL AIRLINE INDUSTRY AND CERTAIN OTHER CONTRACTS AND THE RESTRUCTURING THE COMPANY EARNED 99 MILLION OR 68 CENTS A FULLY DILUTED SHARE REVENUE IN THE LATEST PERIOD FELL TO 55 BILLION FROM 58 BILLION IN 1992 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UNITED TECHNOLOGIES STOCK CLOSED AT 64875 UP 625 CENTS ROBERT F DANIELL CHAIRMAN SAID THE COMPANY ACHIEVED ITS PERFORMANCE GOALS IN 1993 DESPITE THE CONTINUING WEAKNESS IN THE AIRLINE INDUSTRY AND THE EUROPEAN RECESSION THE COMPANY SAID ALL ITS BUSINESSES POSTED HIGHER OPERATING INCOME IN 1993 EXCEPT FOR ITS PRATT & WHITNEY UNIT GEORGE DAVID PRESIDENT PREDICTED IN AN INTERVIEW THAT 1994 WILL BE AN UP YEAR HE DECLINED TO MAKE A FORECAST BUT SAID COMPANY OFFICIALS AREN'T UNCOMFORTABLE WITH THE MEAN OF ANALYSTS' EARNINGS PROJECTIONS WHICH IS 431 A FULLY DILUTED SHARE COMPARED WITH 1993'S FULLY DILUTED 330 IN 1993 MR DAVID SAID THE COMPANY'S CARRIER OTIS AUTOMOTIVE AND FLIGHT SYSTEMS UNITS TOGETHER EARNED 15 MORE THAN THE PREVIOUS YEAR HE SAID HE WAS ENCOURAGED THAT PRATT & WHITNEY'S EARNINGS DURING THE SECOND HALF OF 1993 RECOVERED FROM THE SEVERELY DEPRESSED LEVELS OF A YEAR EARLIER PRATT & WHITNEY'S OPERATING PROFIT IN THE 1993 FOURTH QUARTER WAS 77 MILLION ALMOST DOUBLE THE 39 MILLION IT POSTED A YEAR EARLIER HE ATTRIBUTED THE INCREASE TO HIGHER SALES OF COMMERCIALENGINE SPARE PARTS AND CONTINUED COST IMPROVEMENTS HE SAID THE RESTRUCTURING HAS REDUCED THE WORK FORCE BY 24700 THROUGH THE END OF LAST YEAR ABOUT 95 OF THE 26100 JOBS THE COMPANY HAD SAID IT WOULD ELIMINATE BY 1995 BUT HE SAID WEAK MARKETS ESPECIALLY AEROSPACE MAY INCREASE THE REDUCTION BEYOND THIS LEVEL HE DECLINED TO ESTIMATE BY HOW MUCH THE COMPANY CURRENTLY HAS 168600 EMPLOYEES FOR ALL OF 1993 UNITED TECHNOLOGIES HAD NET INCOME OF 487 MILLION OR 353 A PRIMARY SHARE THAT WAS UP ABOUT 42 FROM 467 MILLION OR 322 A FULLY DILUTED SHARE IN 1992 BEFORE ONETIME ACCOUNTING CHANGES AND SPECIAL CHARGES TAKEN IN 1992 INCLUDING THE CHARGES AND ACCOUNTING CHANGES RELATED TO POSTRETIREMENT BENEFITS UNITED TECHNOLOGIES HAD A NET LOSS IN 1992 OF 287 MILLION OR 267 A SHARE LAST YEAR'S REVENUE DECLINED TO 211 BILLION FROM 22 BILLION IN 1992 BESIDES THE FALLOFF IN AEROSPACE THE STRONGER US DOLLAR AGAINST MAJOR EUROPEAN CURRENCIES LOWERED REVENUE AND EARNINGS IN 1993 THE COMPANY SAID THE LATTER REDUCED REVENUE BY 602 MILLION AND EARNINGS BY 19 CENTS A FULLY DILUTED SHARE 9401270057 940127 BUSINESS BRIEF AMERICAN GREETINGS CORP FISCAL 1994 OPERATING PROFIT SEEN IN LINE WITH ESTIMATES AMERICAN GREETINGS CORP EXPECTS OPERATING PROFIT FOR THE FISCAL YEAR ENDING FEB 28 OF ABOUT 175 A SHARE TO 176 A SHARE HENRY LOWENTHAL SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE GREETING CARDS CONCERN WILL MEET THE CONSENSUS WALL STREET EARNINGS EXPECTATIONS FOR FISCAL 1994 MR LOWENTHAL SAID IN AN INTERVIEW HE DEFINED THE CONSENSUS AS IN THE AREA OF 175 TO 176 A SHARE THAT ESTIMATE EXCLUDES AN EXTRAORDINARY CHARGE OF 23 CENTS A SHARE FOR CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS AND INCOME TAXES WHICH WAS TAKEN IN THE FIRST QUARTER IN FISCAL 1993 CLEVELANDBASED AMERICAN GREETINGS EARNED 1123 MILLION OR 155 A SHARE AFTER ADJUSTMENT FOR A 2FOR1 STOCK SPLIT LAST DECEMBER REVENUE TOTALED 169 BILLION REVENUE IN FISCAL 1994 PROBABLY WILL RISE BETWEEN 5 AND 6 MR LOWENTHAL SAID SALES OF GREETING CARDS IN THE US THE COMPANY'S LARGEST BUSINESS WILL GROW BY 6 TO 8 THIS YEAR MAINLY BECAUSE OF HIGHER AVERAGE PRICES HE ADDED 9401270056 940127 TECHNOLOGY PREEMBRYO TESTING FOR TAYSACHS YIELDS HEALTHY BABY IN TEXAS NORFOLK VA AP A CHILD WHO HAD BEEN GENETICALLY SCREENED FOR INCURABLE TAYSACHS DISEASE AS AN EIGHTCELL PREEMBRYO WAS BORN YESTERDAY AT BAPTIST HOSPITAL IN ORANGE TEXAS THE CHILD WAS TESTED AS A PREEMBRYO THAT HAD NOT YET BEEN IMPLANTED INTO HER MOTHER'S WOMB DOCTORS WITHDREW A SINGLE CELL FROM EGGS THAT WERE FERTILIZED IN VITRO OR OUTSIDE THE MOTHER TESTED FOR TAYSACHS AND THEN THREE CLEAN EGGS WERE IMPLANTED IN THE MOTHER'S UTERUS MOTHER AND DAUGHTER WERE DOING WELL SAID WILLIAM E GIBBONS THE FAMILY'S DOCTOR AT THE JONES INSTITUTE FOR REPRODUCTIVE MEDICINE HERE THE BABY'S PARENTS EACH CARRY THE GENE FOR TAYSACHS WHICH KILLED THEIR FIRST DAUGHTER AT AGE 3 WITHOUT THE TEST THEY HAVE A 25 CHANCE OF HAVING A CHILD WITH TAYSACHS THE TECHNOLOGY COULD HELP COUPLES WHO CARRY OTHER INHERITED DISEASES SUCH AS SICKLECELL ANEMIA AND HEMOPHILIA DOCTORS IN ENGLAND RECENTLY USED A SIMILAR PROCEDURE TO HELP A COUPLE PREDISPOSED TO CYSTIC FIBROSIS GIVE BIRTH TO A HEALTHY INFANT SAID MICHAEL SNABES OF THE DEPARTMENT OF OBSTETRICS AND GYNECOLOGY AT THE BAYLOR COLLEGE JOHN FLETCHER DIRECTOR OF THE CENTER FOR BIOMEDICAL ETHICS AT THE UNIVERSITY OF VIRGINIA PRAISED THE PROCEDURE BUT SAID IT RAISES QUESTIONS ABOUT FUTURE DEVELOPMENTS IN HANDLING DEFECTIVE GENES WHAT PEOPLE ARE AFRAID OF IS ONCE YOU START MANIPULATING GENES IN THE EMBRYO YOU COULD MOVE FROM TREATING THE DISEASE TO AFFECTING CHARACTERISTICS THAT DON'T HAVE ANYTHING TO DO WITH THE DISEASE LIKE SKIN COLOR HEIGHT WEIGHT 9401270055 940127 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN LENDING LOSSES FORCE LIBRARIES TO STEP UP SECURITY ON STEPPEDDOWN BUDGETS LIBRARIES EXPECT TO LOSE 11 OF THEIR MATERIALS FROM NONRETURNS ALONE EACH YEAR SAYS THE AMERICAN LIBRARY ASSOCIATION IN CHICAGO A SPOKESMAN FOR THE ATLANTAFULTON COUNTY LIBRARY SYSTEM SAYS PEOPLE FEEL LIKE THEIR TAX DOLLARS PAID FOR IT SO THEY DON'T THINK OF IT AS THEFT CDS TAPES AND VIDEOS ARE PARTICULARLY TEMPTING FOR THEIR RESALE VALUE SO THE PUBLIC LIBRARY OF CINCINNATI AND HAMILTON COUNTY THE ATLANTAFULTON SYSTEM AND OTHERS LIMIT THE NUMBER OF CDS BORROWERS CAN CHECK OUT SOME LIBRARIES INCLUDING HOUSTON'S TURN TO PROFESSIONAL COLLECTION SERVICES FOR HELP THE CARNEGIE LIBRARY IN PITTSBURGH SAYS TRANSIENT STUDENTS ARE TOUGH TO TRACK BUT SO ARE LAWYERS THE BERGEN COUNTY LAW LIBRARY IN NEW JERSEY SAYS RAZOR BLADES ARE OFTEN USED TO SLICE OUT CASES IT'S AN OLD LAWSCHOOL TRICK THE LIBRARIAN SAYS THE PUBLIC LIBRARY IN CICERO ILL TAKES A TOUGHER POLICY STAND ON ISSUING CARDS TO GET A CARD IN CICERO APPLICANTS MUST SHOW TWO FORMS OF ID AND A REFERENCE AND WAIT THREE DAYS TO IMPROVE SAFETY THE 23BRANCH CHARLOTTE NC AREA SYSTEM INSTALLED PANIC BUTTONS UNDER LIBRARIANS' DESKS PRINTING ON EGGSHELLS AND SUCH GETS CONSUMERS TO DEVOUR THE MESSAGE CONTINUOUS INKJET PRINTING TECHNOLOGY COUPLED WITH NEW FOODGRADE FLUIDS PERMITS MORE EDIBLE ADVERTISING PROPONENTS SAY ACE BAKING CO OF GREEN BAY WIS USES THE PROCESS TO ZAP LOONEY TUNES CHARACTERS ON ICECREAM CONES AND AMERICAN CRYSTAL SUGAR CO IN MOORHEAD MINN CODES ITS PAPER BAGS OF SUGAR WITH THE DOTMATRIX PRINTERS PENNSYLVANIA EGG PRODUCER RW SAUDER INC PLANS TO USE THE SYSTEM TO MARK A BRAND NAME ON EGGS AND TO PRINT US ON THOSE IT EXPORTS VIDEOJET SYSTEMS INTERNATIONAL IN WOOD DALE ILL SAYS ONLY A DOZEN OR TWO FOOD PROCESSORS ARE USING ITS PROCESS SO FAR BUT IT EXPECTS GROWTH AS MARKETERS CATCH ON TO NEW ADVERTISING AND CODING USES INKJET PRINTING USES ELECTRICAL IMPULSES TO SHOOT TINY DROPS OF LIQUID ONTO DELICATE SURFACES WHERE THE NONCONTACT PRINTING DRIES INSTANTLY A SYSTEM COSTS ABOUT 15000 URBAN GOLF SWINGS TO THE FORE POWERED BY THE REALESTATE DOWNSTROKE AS DEMAND GROWS FOR GOLF FACILITIES DRIVING RANGES AND EVEN A NINEHOLE COURSE ARE OPENING IN DOWNTOWN AREAS IN LIEU OF PLANNED HIGHRISES STYMIED BY THE REALESTATE SLUMP IT PROVIDES FOR INTERIM USE OF LAND THAT OTHERWISE WOULD SIT UNDEVELOPED SAYS CHARLES TOURTELLOTTE OF VINTAGE GROUP THE DENVER FIRM IS BUILDING THE 35 MILLION NINEHOLE COURSE AND DRIVING RANGE IN A 31ACRE CHICAGO SITE ZONED FOR OFFICE BUILDINGS AND CONDOS IN SAN FRANCISCO THE YEAROLD MISSION BAY GOLF CENTER SITS ON 75 ACRES NEAR THE FINANCIAL DISTRICT THE SITE WAS SLATED FOR A SCHOOL AND PLAYGROUND UNDER A STALLED PLAN THE CENTERS RUN ON SHORTTERM LEASES THAT LET OWNERS RECLAIM LAND FOR BUILDINGS LATER SAYS STEVE DI COSTANZO OF THE GOLF RANGE AND RECREATION ASSOCIATION THE SAN FRANCISCO CENTER IS LEASED FOR FIVEYEAR PERIODS THE CHICAGO SITE HAS A 15YEAR LEASE BUT THE OWNER CAN RECLAIM SOME PARCELS BEFORE THEN THE NUMBER OF FREESTANDING DRIVING RANGES GREW 14 IN 1993 AND 18 IN 1992 MR DI COSTANZO SAYS WHO WILL TAKE FLUFFY AFTER YOU'RE GONE TEXAS A&M UNIVERSITY'S STEVENSON COMPANION ANIMAL LIFECARE CENTER WILL FOR A 25000 BEQUEST THE CENTER OFFERS A HOMELIKE ATMOSPHERE FOR 30 PETS PLUS THE SERVICES OF A VETERINARY STUDENT ENDOWMENT INCOME COVERS THE PET'S CARE AND WHEN FLUFFY GOES THE FUND GOES TO A VETSCHOOL PROGRAM OF THE DONOR'S CHOICE AN RX FOR PHARMACISTS AN ELECTRONICDISPLAY SYSTEM FROM NATIONAL DATA CORP AND TRANSLUX CORP FLASHES CUSTOMERS WHEN THEIR PRESCRIPTIONS ARE FILLED THE SYSTEM AIMS TO SAVE TIME AT LARGE INSTITUTIONAL PHARMACIES BUILD IT AND THEY WILL PAY SOME 80 OF SHOPPERS SURVEYED BY AMERICAN INTERNATIONAL COLLEGE SPRINGFIELD MASS SAY THEY WOULD PAY EXTRA UP TO 20 MORE ON A 200 ITEM SUCH AS A GAS GRILL OR VCR IF THE MANUFACTURER WOULD ASSEMBLE THE GOODS REFINANCED BOOMERS ARE SHOPPING AGAIN BUT THEY WANT BARGAINS WHEN IT COMES TO CONSUMER SPENDING FORGET THE 25TO34YEAROLD BABY BUSTERS THEY ARE STILL STRETCHING TO BUY THAT FIRST HOUSE SAYS EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE WATCH THE AGING BOOMERS WHO TOOK ADVANTAGE OF LOW RATES TO REFINANCE THEIR MORTGAGES AND NOW WILL ENJOY MUCH LOWER MONTHLY MORTGAGE PAYMENTS FOR 15 TO 30 YEARS SURPRISE THE EXTRA MONTHLY CASH FLOW JUST ABOUT COVERS MONTHLY LEASE PAYMENTS FOR A NEW CAR BESIDES WHEELS THE BOOMER JUGGERNAUT IS INTERESTED IN HOUSEHOLD DURABLE GOODS NOW THAT THEY'RE FEELING MORE SECURE ABOUT THEIR JOBS THEY'LL PROBABLY FIX UP THE HOUSES THEY'VE GOT MR YARDENI FIGURES BUT DON'T EXPECT THE LUXURIES TO START FLOWING WE'RE STILL IN THE PRICE CLUB' ERA HERE HE SAYS OVERALL HOMEOWNERS ARE SAVING AS MUCH AS 50 BILLION A YEAR FROM THE MORTGAGE REFINANCINGS THE SECURITIESFIRM ECONOMIST SAYS BRIEFS BLOCK THAT CHOLESTEROL THE FIREHOUSE RESTAURANT IN NEW YORK OFFERS AN ALLYOUCANEAT SUPER BOWL SUNDAY MENU OF CHICKEN WINGS PIZZA AND FRENCH FRIES MEANWHILE FOR THOSE WHO AREN'T INTO PIGSKIN THE DECORATIVEFABRICS CHAIN CALICO CORNERS PROMOTES AN ALTERNATIVE WITH ITS SUPERBOLT SALE 9401270054 940107 BOARD OF CONTRIBUTORS UNEMPLOYMENT THE CRISIS CONTINUES BY PAUL W MCCRACKEN WHILE 1994 OPENS WITH CONSIDERABLE OPTIMISM ABOUT US ECONOMIC PROSPECTS WITH 3 GROWTH WIDELY EXPECTED APPARENTLY IT IS TO BE A YEAR WHEN GOVERNMENTS IN THE INDUSTRIAL WORLD WILL BE UNDER MORE PRESSURE TO DO SOMETHING ABOUT UNEMPLOYMENT THIS IS OF COURSE LATE IN THE DAY WHILE THE LIBERAL MARKETORGANIZED ECONOMIES AND THEIR GOVERNMENTS HAVE BEEN EXTOLLING THE VIRTUES OF THEIR ECONOMIC SYSTEM TO EASTERN EUROPE IN FACT THE CAPITALIST ECONOMIES HAVE BEEN SEEMING TO VALIDATE THE CHIEF CRITICISM BY THE COMMUNISTS OF CAPITALISM NAMELY THAT CAPITALISM GENERATES HIGH UNEMPLOYMENT IN ITS YEAREND ECONOMIC REPORT LAST MONTH THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ESTIMATED THAT FOR THESE ADVANCED INDUSTRIAL COUNTRIES AS A WHOLE UNEMPLOYMENT THIS YEAR MIGHT REACH 35 MILLION LAST YEAR FOR MANY COUNTRIES IN WESTERN EUROPE THE UNEMPLOYMENT RATE WAS IN THE 11 ZONE AND IN SOME EG SPAIN AND FINLAND THE RATE WAS ABOUT 20 THE US ECONOMY WAS RELATIVELY STRONGER AND WILL BE STRONGER THAN EUROPE AND JAPAN IN 1994 BUT EVEN HERE EMPLOYMENT LAST YEAR WAS ROUGHLY 10 MILLION BELOW THE BASIC LABOR FORCE THAT ECONOMIC POLICIES NEED TO BE FOCUSED ON MEASURES TO ENCOURAGE A MORE RAPID EXPANSION OF OUTPUT AND EMPLOYMENT WOULD SEEM TO BE SELFEVIDENT IT IS ONLY REMARKABLE THAT THE YEAR FOR THIS FOCUS ON POLICIES TO GET MORE PEOPLE BACK TO WORK IS 1994 AND NOT 1993 OR EVEN 1992 OR 1991 WE ARE NOW IN A LARGE AND PROTRACTED SHORTFALL FROM ANYTHING THAT COULD BE CALLED A NORMAL RETURN TO REASONABLY FULL EMPLOYMENT FROM THE 199091 RECESSION THOSE ENTERING THE WORK FORCES IN WESTERN EUROPE AND EVEN IN THE US CONFRONT LABOR MARKET CONDITIONS MORE NEARLY RESEMBLING THOSE OF THE LATE 1930S THAN THOSE PREVAILING DURING THE FOUR DECADES OR SO FOLLOWING WORLD WAR II THIS ABSENCE OF NEEDED ECONOMIC VIGOR STEMS FROM A COMPLEX MOSAIC OF CAUSES GOVERNMENTS OF THE EUROPEAN COMMUNITY WERE SO PREOCCUPIED WITH EC MATTERS THAT THEY NEGLECTED ATTENTION TO THE FUNDAMENTALS THAT DETERMINE THE BASIC CAPABILITY OF THEIR ECONOMIES BACK HOME TO CREATE NEW JOBS AND DELIVER RISING REAL INCOMES TO A WIDER SHARE OF THE POPULATION GERMANY HAD THE LARGE AND DIFFICULT PROBLEM OF ABSORBING THE ANTIQUATED ECONOMY OF EAST GERMANY FOR WHATEVER REASON AN IMPORTANT PART OF THE WORLD ECONOMY WESTERN EUROPE THAT FOR DECADES DEMONSTRATED A PERSISTING CAPABILITY TO OPERATE WITH LOWER UNEMPLOYMENT RATES THAN IN NORTH AMERICA NOW HAS THE DISTINCTION OF BEING THE WORLD'S MAJOR UNEMPLOYMENT PROBLEM THESE GOVERNMENTS ARE LIKE A FOOTBALL COACH SO INTRIGUED WITH HIS COMPUTER'S CAPACITY TO GENERATE INGENIOUS PLAYS THAT HE NEGLECTS BLOCKING AND TACKLING MOREOVER A MAJOR PART OF THIS EFFORT WAS AN ATTEMPT TO WELD CURRENCIES TOGETHER WHICH INVOLVED A SURRENDER OF ECONOMIC SOVEREIGNTY TO BRUSSELS OR FRANKFURT THAT PEOPLE UNDERSTANDABLY WERE NOT WILLING TO ACCEPT AND THEY CERTAINLY WERE NOT WILLING TO ACCEPT THE HIGH UNEMPLOYMENT THAT INEVITABLY FOLLOWED IN THE US THE FLIRTATION WITH REALLY RAMPANT INFLATION AT THE END OF THE 1970S HAS CONTINUED TO HAUNT THE MANAGEMENT OF ECONOMIC POLICY BROADBASED MEASURES OF THE MONEY STOCK IN REAL TERMS CLOSED OUT 1993 STILL BELOW THE LEVELS AT THE END OF 1990 EMPLOYMENT AND OUTPUT DO NOT MOVE PRECISELY WITH THESE MEASURES OF LIQUIDITY BUT NO OTHER EXPANSION AFTER A RECESSION SINCE WORLD WAR II HAS HAD TO STRUGGLE AGAINST A SHRINKING MONETARY STOCK IN REAL TERMS AND THE LETHARGIC PACE OF THE US EXPANSION HAS BEEN CONSISTENT WITH THE ECONOMIC POLICIES WE HAVE PURSUED JAPAN'S BUBBLE PROBLEM HAS ALSO HAD AN ADVERSE EFFECT ON THE US ECONOMY JAPAN IS OUR SECONDLARGEST EXPORT MARKET AND OUR EXPORTS TO JAPAN HAVE BEEN RUNNING BELOW YEAREARLIER LEVELS THOUGH THE DECLINE IN OUR EXPORTS TO WESTERN EUROPE HAS BEEN RELATIVELY MORE SEVERE BY CONTRAST US EXPORTS TO THE ASIAN TIGERS HONG KONG KOREA SINGAPORE TAIWAN HAVE BEEN RUNNING WELL AHEAD OF YEAREARLIER VOLUMES IF GOVERNMENTS ARE SERIOUSLY GOING TO DEPLOY POLICIES TO GET THE 35 MILLION PEOPLE NOW UNEMPLOYED BACK TO WORK WHAT MIGHT THE ELEMENTS OF SUCH A STRATEGY FOR ECONOMIC POLICY BE GOVERNMENTS SHOULD DRAW THEIR BASIC SLOGAN FROM THE MEDICAL PROFESSION FIRST DO NO HARM A PACE OF MONETARY EXPANSION ADEQUATE NOT ONLY TO ACCOMMODATE BUT EVEN TO ENCOURAGE THE NEEDED MORE RAPID RATE OF GROWTH WOULD CERTAINLY DO NO HARM THE MORE RAPID EXPANSION IN OUTPUT AND EMPLOYMENT THAT IS NEEDED WILL NOT BE FORTHCOMING OTHERWISE FEW THINGS WILL GIVE CENTRAL BANKERS A BAD CASE OF NERVES MORE CERTAINLY THAN EVIDENCE THAT A LITTLE PROSPERITY MIGHT BREAK OUT BUT THIS AGONY WILL HAVE TO BE ENDURED WHAT ABOUT FISCAL POLICY FOR MORE THAN A HALFCENTURY MANAGING THE FISCAL OPERATIONS OF GOVERNMENT HAS BEEN ASSUMED TO BE THE EFFECTIVE WAY TO GUIDE THE ECONOMY ALONG THE RIGHT PATH WE MAY BE IN THE EARLY STAGES OF A TURNING POINT OF HISTORIC PROPORTIONS ON THIS MATTER TWO CONVICTIONS SEEM TO BE EMERGING ONE IS THAT A SOCALLED EXPANSIVE FISCAL OR BUDGET POLICY DOES NOT SEEM IN PRACTICE TO HAVE THE FAVORABLE EFFECT ON THE ECONOMY'S OUTPUT AND EMPLOYMENT THAT THE THEORY WOULD LEAD US TO EXPECT IN ITS YEAREND REVIEW OF THE OUTLOOK THE OECD OBSERVED THAT WHERE DISCRETIONARY FISCAL MEASURES HAVE BEEN TAKEN TO SUPPORT DEMAND THE EFFECTS ON ACTIVITY APPEAR TO HAVE BEEN DISAPPOINTING THE SECOND CONVICTION IS THAT THE REMOVAL OF THE DISCIPLINE ON SPENDING FORMERLY IMPOSED BY THE REQUIREMENT THAT THE BUDGET BE BALANCED HAS ENABLED INTEREST GROUPS TO EXERT PRESSURES THAT HAVE OVERLOADED SOCIETY WITH GOVERNMENT FOR AT LEAST A DOZEN OF THE ADVANCED INDUSTRIAL COUNTRIES GOVERNMENT OUTLAYS NOW EXCEED 50 OF THEIR GROSS DOMESTIC PRODUCT THEY ARE LED BY SWEDEN WHOSE GENERAL GOVERNMENT OUTLAYS IN 1993 WERE EQUAL TO 735 OF GDP THE INDUSTRIAL COUNTRIES IN SHORT SEEM TO BE MOVING INEXORABLY DOWN A TRAIL TO WHERE THE NATIONAL INCOME WILL ALL GO TO GOVERNMENT WITH GOVERNMENT DOLING IT BACK OUT TO PEOPLE ACCORDING TO THEIR NEEDS OR MORE PROBABLY ACCORDING TO POLITICAL PRESSURES SLOWLY THE VIEW IS COALESCING THAT THIS IS NOT THE RIGHT WAY TO RUN THINGS AND THAT MUCH STRONGER BARRIERS AGAINST SPENDING PRESSURES MUST NOW BE ERECTED THE GENERAL CONVICTION THAT BUDGETS SHOULD BE BALANCED ONCE SERVED THAT ROLE AND IT WORKED FROM 1789 TO 1929 EXCLUDING WAR YEARS SURPLUS YEARS OUTNUMBERED DEFICIT YEARS THREE TO ONE ONE OF THE MOST DIFFICULT QUESTIONS FOR PUBLIC POLICY TODAY IS WHETHER MUCH OF THE UNEMPLOYMENT WE NOW SEE IS STRUCTURAL AND THEREFORE WOULD NOT BE RESPONSIVE TO A GENERALLY MORE VIGOROUS RATE OF ECONOMIC EXPANSION ARE THE UNEMPLOYED WHO NEED JOBS NOT WHERE THE NEW JOBS WOULD BE OPENING UP WOULD THERE BE SUCH A MISMATCH BETWEEN THE EDUCATION AND SKILL LEVELS OF THE UNEMPLOYED AND THOSE REQUIRED BY THE NEW EMPLOYMENT OPPORTUNITIES THAT A LARGE PROPORTION OF THESE PEOPLE WOULD REMAIN STRANDED HAVE GOVERNMENT PROGRAMS IN AND OF THEMSELVES POLITICALLY ATTRACTIVE BUILT SO MANY IMPEDIMENTS INTO JOB CREATION THAT IT WILL BE DIFFICULT TO GET BACK TO SOMETHING LIKE WHAT WE USED TO CALL REASONABLY FULL EMPLOYMENT SAY THE 5 1/2 UNEMPLOYMENT RATE THAT CHARACTERIZED MUCH OF THIS CENTURY UNTIL RECENT YEARS THESE WERE WORRIES IN THE EARLY 1980S AND A MAJOR CONCERN AFTER THE 196061 RECESSION AND STRUCTURAL PROBLEMS ARE FREQUENTLY CITED AS THE BASIC REASON FOR EUROPE'S EXCEPTIONALLY HIGH UNEMPLOYMENT RATES TODAY WORRIES ABOUT STRUCTURAL MISMATCHES IN THESE EARLIER PERIODS WE FOUND WERE OVERDONE WITH EXPANSIVE ECONOMIC POLICIES IN THE 1960S AND AGAIN IN THE 1980S THE ECONOMY MOVED BACK TO REASONABLY FULL EMPLOYMENT NOW HOWEVER THERE MAY BE REASON FOR MORE CONCERN ABOUT STRUCTURAL UNEMPLOYMENT AND IT IS INCREASINGLY EVIDENT THAT THE IMPEDIMENTS TO REGAINING REASONABLY FULL EMPLOYMENT ARE GOVERNMENT PROGRAMS THEMSELVES THE RELUCTANCE OF BUSINESSES TO TAKE ON THE LARGE UNCERTAIN AND POSSIBLY OPENENDED LIABILITIES WITH EACH ADDED EMPLOYEE IS EVIDENT IN US MANUFACTURING EMPLOYMENT WHILE THE NUMBER EMPLOYED IN MANUFACTURING LAST YEAR WAS LESS THAN IN 1990 THE AVERAGE NUMBER OF OVERTIME HOURS WORKED WAS HIGHER IN FACT HIGHER THAN FOR ANY OTHER YEAR IN THE PRIOR DECADE EXCEPT FOR 1988 YET THERE IS NO SHORTAGE OF PEOPLE WHO WOULD LIKE TO HAVE A JOB IN MANUFACTURING THIS ALL COMES INTO FOCUS WITH WHAT WILL PROBABLY BE THIS YEAR'S MAJOR US PUBLIC POLICY ISSUE NAMELY HEALTH CARE WHATEVER THE SPECIFICS OF THE PROGRAM ADOPTED MANDATING A HEAVY COST ON EMPLOYERS TO FINANCE THE PROGRAM WOULD BE ESSENTIALLY LEVYING A HEAVY EXCISE TAX ON EMPLOYMENT AND AN EXCISE TAX ON ANYTHING REDUCES DEMAND FOR IT THIS WILL BE THE SWORD OF DAMOCLES HANGING OVER THE HOPES OF THE UNEMPLOYED IN 1994 MR MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A UNIVERSITY OF MICHIGAN PROFESSOR EMERITUS SEE RELATED LETTER LETTERS TO THE EDITOR HOW TO DO NO HARM' REJECT MACROECONOMICS WSJ JAN 27 1994 9401070084 YY94 MM01 9401270053 940127 KOKO THE GORILLA WHO SPEAKS IN SIGNS TRIES FOR MOTHERHOOD SHE AND A NEW MATE NDUME SEEM TO BE IN THE MOOD BUT LIFE IS A SOAP OPERA BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL WOODSIDE CALIF FROM THE START THEY SEEMED AN UNLIKELY COUPLE SHE IS AN ARTICULATE 22YEAROLD SOPHISTICATE HE IS A 300POUND BRUISER WITH A HABIT OF VOMITING ON PEOPLE HE DOESN'T LIKE ABOUT ALL THEY HAD GOING FOR THEM WAS A CERTAIN ANIMAL ATTRACTION FOR SHE IS KOKO PROBABLY THE MOST FAMOUS GORILLA SINCE KING KONG IN THE 1970S KOKO AMAZED THE WORLD WITH DISPLAYS OF HER ABILITY TO COMMUNICATE WITH HUMAN BEINGS USING AMERICAN SIGN LANGUAGE TAUGHT TO HER BY HER HUMAN KEEPERS AT THE GORILLA FOUNDATION'S REDWOODSHROUDED ENCAMPMENT HERE SHE HAD A PET KITTEN NAMED ALL BALL THAT SHE MOTHERED HE IS NDUME A MUSCLEBOUND SILVERBACK GORILLA WHO DESPITE A CERTAIN COARSENESS HAS BECOME THE LOVE OF KOKO'S LIFE FOR MORE THAN 10 YEARS KOKO'S HUMAN HANDLERS PENNY PATTERSON AND RON COHN HAVE KEPT THE FAMED APE MORE OR LESS OUT OF THE LIMELIGHT HOPING THAT KOKO WOULD FALL IN LOVE AND START A FAMILY IT HASN'T BEEN EASY THERE HAVE BEEN REJECTED SUITORS UNFULFILLED PASSIONS SEXUAL INFIDELITIES AND TROUBLE WITH MOTORCYCLE GANGS AND NOISY LOGGERS THERE HAVE BEEN TRIBULATIONS ENOUGH FOR THE SOAP OPERAS KOKO LIKES TO WATCH ON HER TV SET FOR KOKO'S HANDLERS HELPING HER FIND LOVE AND ACHIEVE MOTHERHOOD IS OF SCIENTIFIC IMPORTANCE DR PATTERSON A PSYCHOLOGIST AND DR COHN A BIOLOGIST HAVE BEEN WORKING WITH KOKO ALL HER LIFE THEY WANT TO FIND OUT IF KOKO'S GIFT OF GAB WILL BE PASSED ALONG TO HER OFFSPRING WHETHER SHE WILL TEACH IT TO HER BABIES THE QUESTION IS RELEVANT TO UNDERSTANDING TO WHAT EXTENT GORILLAS TRULY DO HAVE HUMAN CHARACTERISTICS A LOT MORE IS AT STAKE HERE THAN KOKO'S LOVE LIFE SAYS DR PATTERSON AND WHAT A TROUBLED LOVE LIFE IT HAS BEEN FOR STARTERS IT ISN'T EASY FOR A 350POUND GORILLA TO GET DATES EVEN IN CALIFORNIA GORILLAS IN GENERAL ARE FINICKY ABOUT SUCH THINGS AND KOKO SEEMS ESPECIALLY STANDOFFISH SOME SPECULATE THAT KOKO'S ACCOMPLISHMENTS MAKE HER A BIT DISDAINFUL OF RUNOFTHEMILL MALES DR PATTERSON ISN'T SURE BUT KOKO CAN BE A BIT HAUGHTY SOMETIMES SHE SAYS MOREOVER A GOOD MAN IS HARD TO FIND KOKO'S FIRST PROSPECTIVE MATE WAS MICHAEL A LOWLAND GORILLA A YEAR HER JUNIOR WHO WAS CAPTURED IN CAMEROON FOR SEVERAL YEARS KOKO AND MICHAEL LIVED TOGETHER AND THERE WERE HOPEFUL SIGNS THAT SOMETHING LONGTERM MIGHT DEVELOP BUT MICHAEL HAD A BAD TEMPER NOT TO MENTION A BAD STOMACH HE WAS PRONE TO BOUTS OF RAGE WHICH DIDN'T ENDEAR HIM TO KOKO THEY STILL LIVE IN ADJOINING SUITES AT THE GORILLA FOUNDATION BUT THEY ARE JUST FRIENDS KOKO'S HANDLERS TURNED QUICKLY TO A MORE MODERN APPROACH IN THE EARLY 1980S DR PATTERSON COMPILED TAPES OF THE WORLD'S MOST ELIGIBLE SILVERBACKS AS MATURE MALE LOWLAND GORILLAS ARE KNOWN FOR THE SILVERY HUE OF THEIR COATS SHE ROLLED THE TAPES FOR KOKO MOST LEFT HER COLD SUCH AS THE SNIPPET ON IVAN AN APE IN HIS 30S WHO LIVES IN A CAGE AT A SHOPPING MALL IN TACOMA WASH WHEN IVAN POPPED UP KOKO ATTACKED THE SCREEN WITH HER STUFFED ALLIGATOR IVAN GOT THE INSTANT HEAVEHO DR PATTERSON RECALLS BUT THE VIDEO DATING DID TURN UP ONE HOT PROSPECT HIS NAME WAS BONGO HIS HOME IS THE ROME ZOO HE WAS KOKO'S ITALIAN STALLION DR PATTERSON RECALLS KOKO SIGNALED FURIOUSLY TO DR PATTERSON BY BLOWING KISSES RUBBING HER BELLY AND FOLDING HER ARMS AS IF CRADLING AN INFANT THAT BONGO WAS A HUNK BUT THIS MATCH WAS NOT TO BE THE ROME ZOO REFUSED TO LET BONGO AND KOKO GET TOGETHER KOKO FRIENDS SAY WAS CRUSHED SHE CRIED SHE MOPED THEN FINALLY SHE SEEMED RESIGNED TO HER LONELY STATE BUT THEN ONE SUNNY SPRING AFTERNOON IN 1991 NDUME CAME INTO HER LIFE KOKO FLIPPED WHEN SHE SAW NDUME ON VIDEO SHE RACED UP TO THE MONITOR AND PLANTED KISSES ALL OVER HIS MUSCULAR IMAGE NDUME HAD A FEARSOME REPUTATION HIS HANDLERS AT THE BROOKFIELD ZOO JUST OUTSIDE CHICAGO HAD BEEN FORCED TO TAKE HIM OFF DISPLAY BECAUSE HE INSISTED ON BOMBARDING ZOO PATRONS WITH GORILLA DUNG AND THROWING UP ON ZOOKEEPERS HE WITH DIFFERENT MATES HAD ALREADY FATHERED FOUR BABIES BUT NONE OF THAT SEEMED TO MATTER TO KOKO A FIRST DATE WAS ARRANGED NDUME WAS TRANQUILIZED CRATED UP SHIPPED TO SAN JOSE AND TRUCKED TO WOODSIDE ABOUT 30 MILES SOUTH OF SAN FRANCISCO IT WENT LIKE A LOT OF FIRST DATES AS NDUME EDGED INTO KOKO'S CAGE KOKO BELTED HIM WITH A PLASTIC PIPE NDUME RETALIATED BY HEAVING BURLAP BAGS AT KOKO IT WAS A ROCKY START FOR SURE SAYS DR PATTERSON IT TOOK ABOUT A YEAR FOR KOKO AND NDUME TO STOP THROWING THINGS AT EACH OTHER EVERY ONCE IN A WHILE THEY STILL DO THE MOTORCYCLES WERE ALSO A PROBLEM THE GORILLA FOUNDATION IS ONLY ABOUT A MILE DOWN THE ROAD FROM A RESTAURANT WHERE CYCLISTS HANG OUT ON WEEKENDS DOZENS OF HOTROD BIKERS ARE LINED UP OUTSIDE THE PLACE GUNNING THEIR ENGINES THE BIG BIKES WERE DRIVING THE GORILLAS BANANAS DRS COHN AND PATTERSON HAVE DISCUSSED THE GORILLAS IN THEIR MIDST WITH BIKERS WHO ARE TRYING TO BE QUIETER MEANWHILE KOKO AND NDUME HAVING GONE BEYOND THEIR AWKWARD EARLY ENCOUNTERS WERE SHARING CHEWING GUM PLAYING WITH EACH OTHER'S DOLLS AND FALLING HEAD OVER HEELS BY LATE LAST YEAR THEY SEEMED READY TO SETTLE DOWN AND START A FAMILY BUT ANOTHER PROBLEM AROSE FOR SOME REASON PROBABLY STRESSRELATED KOKO HASN'T BEEN MENSTRUATING LATELY THOUGH FEMALE GORILLAS CAN PRODUCE YOUNG FROM ROUGHLY THE AGE OF 10 TO 40 AND CAN LIVE TO THE AGE OF 60 KOKO THEORETICALLY IS IN HER CHILDBEARING PRIME TIME TO TREAT THE PROBLEM DRS COHN AND PATTERSON HAVE BEEN PLANNING TO GIVE HER FEMALE HORMONES IT SHOULD WORK AND WE SEE NO REASON WHY KOKO SHOULDN'T BE ABLE TO GET PREGNANT NOW THAT SHE AND NDUME ARE READY SAYS DR PATTERSON BUT NOW THAT HAS BEEN PUT OFF BY YET ANOTHER INTRUSION LOGGING THE GORILLA FOUNDATION'S NEXTDOOR NEIGHBOR DEVELOPER STEVE PANKOWSKI IS CUTTING DOWN ABOUT 500 TREES ON PROPERTY ADJACENT TO KOKO AND NDUME'S LOVE NEST CHAIN SAWS HOWLING AND TREES CRASHING AND TRUCKS GRINDING NOT EXACTLY MOOD MUSIC OBSERVES DR COHN THE NOISE GIVES KOKO DIARRHEA THAT'S NOT A BIG TURNON FOR NDUME OBSERVES DR PATTERSON MR PANKOWSKI'S LOGGER ROY WEBSTER SAYS HIS BOSS IS SYMPATHETIC TO THE GORILLAS' PLIGHT HE SAYS THEY PLAN TO TAKE STEPS TO MINIMIZE THE NOISE FROM THEIR LOGGING OPERATION AND TO CONSULT GORILLA EXPERTS OF THEIR OWN CHOOSING TO SATISFY THEMSELVES THAT DRS COHN AND PATTERSON AREN'T EXAGGERATING THE PROBLEM BUT HIS BOSS HE SAYS INTENDS TO KEEP ON CUTTING TREES LOGGING IS LOUD MR WEBSTER SAYS BUT I DON'T THINK IT SHOULD STOP THEM FROM ER WELL DOING WHATEVER THEY'RE DOING UP THERE KOKO HERSELF HAS MADE HER OWN ATTITUDE CLEAR WHEN MR PANKOWSKI AMBLED UP THE WOODED PATHWAY NEAR HER CAGE LAST SUMMER KOKO PELTED HIM WITH DUNG AND IN A RARE RECENT INTERVIEW KOKO WAS ASKED WHAT SHE THINKS OF LOGGING SHE LAUNCHED INTO A FLURRY OF HAND SIGNALS LIKE SOME CONFUSED TRAFFIC COP SHE GRABBED HER HEAD WITH BOTH HANDS TRACED A FROWN ACROSS HER FACE SLAPPED HER BREAST DR PATTERSON'S TRANSLATION KOKO NOT LIKE BAD SAD NO 9401270052 940127 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN UKRAINE'S PARLIAMENT APPROVED A PROGRAM TO SELL OFF A BROAD SWATH OF STATEOWNED BUSINESSES BY YEAR END PRIVATIZATIONS WERE AUTHORIZED MORE THAN A YEAR AGO BUT AS WITH MOST OTHER ECONOMIC REFORMS LITTLE HAS BEEN ACHIEVED THE NEW PROGRAM WOULD INCREASE THE PRIVATE SECTOR'S SHARE IN THE FORMER SOVIET REPUBLIC'S ECONOMY TO 28 FROM 2 BY SELLING OFF 20000 SMALL ENTERPRISES 8000 MEDIUMSIZE AND LARGE FIRMS AND 1400 UNFINISHED CONTRUCTION PROJECTS THOUGH MOST OF THE ASSETS WILL BE EXCHANGED FOR PRIVATIZATION VOUCHERS THAT WERE DISTRIBUTED FREE TO UKRAINIANS SALES OF MINORITY STAKES ARE EXPECTED TO RAISE 230 MILLION OFFICIALS SAID FOREIGNERS BIDDING ON THE ASSETS WILL BE SUBJECT TO A SPECIAL EXCHANGE RATE OF 420 KARBOVANETS TO THE US DOLLAR THE CURRENCY'S MARKET RATE HAS SWUNG RECENTLY TO 12592 TO THE DOLLAR FROM 31000 THE POLISH GOVERNMENT WAS ACCUSED OF WILDLY UNDERVALUING BANK SLASKI AS ITS SHARES SCORED A ONEDAY JUMP TO 313 FROM THE 23 INITIAL OFFERING PRICE THE PRIVATIZATION CHIEF AND POLITICIANS SAID THE UNDERPRICED SELLOFF WHICH HAD BEEN HELD UP AS A PRIVATIZATION MODEL IN EFFECT ROBBED POLAND'S TREASURY POLITICIANS ALSO FAULTED POLAND FOR ITS DEAL TO SELL A 259 STRATEGIC STAKE TO THE DUTCH BANK AND INSURER INTERNATIONALE NEDERLANDEN GROEP BV WHICH NOW HAS A HUGE PAPER PROFIT THE GERMAN CABINET APPROVED DRAFT LEGISLATION TO REPEAL STRICT LIMITS IMPOSED IN A 1933 REBATE BAN ON RETAILERS' OFFERING DISCOUNTS MEANWHILE THE HDE RETAIL INDUSTRY GROUP PREDICTED WESTERN GERMAN RETAIL SALES WILL SHRINK AN INFLATIONADJUSTED 4 THIS YEAR FROM 434 BILLION LAST YEAR POSSIBLY ELIMINATING 30000 JOBS THE CABINET ALSO ADVANCED REFORMS TO STREAMLINE LAWS ON CORPORATE RESTRUCTURINGS MAKING THEM MORE TRANSPARENT WITH BETTER REGULATORY OVERSIGHT BOTH MEASURES ARE PART OF A BROAD PLAN TO COMBAT UNEMPLOYMENT AND IMPROVE COMPETITIVENESS CHINA AGAIN BERATED THE HONG KONG GOVERNMENT FOR CONTINUING TO FINANCE BUILDING OF THE BRITISH COLONY'S NEW AIRPORT DESPITE BEIJING'S OPPOSITION IT SAID CHINA WON'T BE LIABLE FOR ANY HONG KONG DEBT IN THE PROJECT AND WON'T HONOR UNILATERALLY AWARDED AIRPORTRELATED CONTRACTS EXTENDING BEYOND JUNE 30 1997 WHEN THE TERRITORY REVERTS TO CHINESE CONTROL HONG KONG NOTED IT HASN'T BORROWED FOR THE WORK AND DOESN'T PLAN TO DO SO AND HASN'T GRANTED FRANCHISES OR CONTRACTS BEYOND 1997 SO CHINA'S BROADSIDE WAS LINKED TO PRESSURING BRITAIN ON THEIR DISPUTE ABOUT BROADENING DEMOCRACY IN HONG KONG COMPANIES IN GERMANY APPEALED TO THE GOVERNMENT FOR MORE PROTECTION FROM THE SPREADING INFLUENCE OF ORGANIZED CRIME AND INDUSTRIAL ESPIONAGE AT A MEETING CALLED BY CHANCELLOR HELMUT KOHL TO DISCUSS THE RISING CRIME RATE THE CHAMBER OF INDUSTRY AND COMMERCE SAID COMPANIES AND BUSINESS ASSOCIATIONS NEEDED THE HELP OF POLICE AND INTELLIGENCE SERVICES TO WARD OFF MAFIASTYLE GANGS THE CONFERENCE OF BUSINESS POLICE AND SOCIAL LEADERS WAS PART OF AN EFFORT BY MR KOHL'S CENTERRIGHT COALITION SLUMPING IN POPULARITY POLLS AHEAD OF OCTOBER ELECTIONS TO MAKE LAW AND ORDER A TOP CAMPAIGN ISSUE CHINA PLANS TO OPEN IN APRIL A MEAT FUTURES EXCHANGE IN CHENGDU THE CAPITAL OF SICHUAN PROVINCE WHICH IS A MAJOR PORKPRODUCING REGION THE EXCHANGE WILL ADMIT DOMESTIC AND FOREIGN ENTERPRISES BROKERAGE COMPANIES AND FINANCIAL INSTITUTIONS AS MEMBERS CHENGDU IN SOUTHWEST CHINA ALSO HAS THE COUNTRY'S LARGEST WHOLESALE MEAT MARKET WHICH HAS GROWN RAPIDLY SINCE IT WAS SET UP IN 1991 IN A MOVE LIKELY TO RENEW CALLS FOR AN INDEPENDENT EUROPEAN UNION COMPETITION AGENCY THE EU COMMISSION CLEARED A STEELTUBING MERGER OVER THE OBJECTIONS OF ITS OWN TOP ANTITRUST OFFICIALS THE DECISION ALLOWING MANNESMANN AG OF GERMANY VALLOUREC SA OF FRANCE AND ILVA SPA OF ITALY TO COMBINE THEIR STAINLESSSTEEL TUBING UNITS MARKS A SETBACK FOR THE EU COMPETITION CHIEF WHO OPPOSED THE DEAL AND FOR THOSE WHO WANT MERGER CASES DECIDED SOLELY ON COMPETITION FACTORS SUCH AS MARKET SHARE IN THE EU FORMERLY THE EUROPEAN COMMUNITY IT REPRESENTS A VICTORY FOR EU OFFICIALS WHO MAINTAIN THAT THE 12MEMBER TRADE BLOC NEEDS AN AGGRESSIVE INDUSTRIAL POLICY IN BELEAGUERED SECTORS SUCH AS STEEL THE COMMISSION WAS FIERCELY DIVIDED ON THE ISSUE SOURCES SAID NOTING THIS WAS CERTAIN TO BE SEIZED UPON BY EU CRITICS WHO SEEK AN AUTONOMOUS AGENCY REMOVED FROM POLITICAL CONSIDERATIONS TO DEAL WITH EUROPEAN MERGERS ONLY ONE PROPOSAL HAS BEEN BLOCKED SINCE THE EU MERGERCONTROL LAW TOOK EFFECT THREE YEARS AGO HONG KONG WHICH HAS 140000 REGISTERED DOGS SAID ALL CANINES MUST HAVE MICROCHIPS IMPLANTED IN THEIR EARS SO THAT OWNERS OF WANDERING PETS CAN BE IDENTIFIED THE MOVE FOLLOWED A DOG'S FATAL MAULING OF A GIRL IN THE BRITISH COLONY WHICH HAS 18000 STRAY MUTTS INDONESIAN AUTHORITIES ARE DETAINING CHILDREN WHO LINE ROADS BY THE HUNDREDS TO RENT THEMSELVES TO MOTORISTS WHO OTHERWISE WOULD BE BANNED FROM MAIN ROADS IN MORNING RUSH HOURS A RULE TO COMBAT CHRONIC TRAFFIC PROBLEMS REQUIRES CARS TO HAVE AT LEAST THREE OCCUPANTS 9401270051 940127 CREDIT MARKETS SYNTHETIC 15YEAR TREASURY NOTE MATCHES YIELD OF THE LONG BOND AT THE EXPENSE OF LIQUIDITY BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHAT TREASURY SECURITY MATURES IN 15 YEARS BUT YIELDS AS MUCH AS THE 30YEAR BOND FOR A DOZEN INVESTORS YESTERDAY THE ANSWER WAS A SYNTHETIC 15YEAR TREASURY NOTE IT'S A NEW KIND OF BOND THAT WALL STREET FIRMS ARE RUSHING TO MARKET TO FILL A VOID IN THE MARKET FOR TREASURY SECURITIES AND CREATE ALTERNATIVES FOR YIELDSTARVED BUYERS OF CORPORATE AND TREASURY BONDS YESTERDAY CS FIRST BOSTON CORP A UNIT OF CS HOLDING AG OF SWITZERLAND SOLD 500 MILLION OF THESE 15YEAR NOTES WHICH WERE MADE BY POOLING 30 DIFFERENT TREASURY SECURITIES AND USING THEIR COUPON AND PRINCIPAL PAYMENTS TO PAY INTEREST AND PRINCIPAL ON THE NEW NOTES LIKE TREASURYS THE NOTES WILL BE NONCALLABLE THEY CARRY A 6 COUPON AND WERE SOLD AT A YIELD OF 630 THE SAME YIELD AS THE BENCHMARK 30YEAR TREASURY BOND YESTERDAY BUT YOU CAN'T GET SOMETHING FOR NOTHING IN THE BOND MARKET AND THE 15YEAR SYNTHETIC TREASURY NOTE IS NO EXCEPTION WHAT INVESTORS GAIN IN YIELD THEY WILL LOSE IN LIQUIDITY SAYS KEVIN REED MANAGER OF FIXEDINCOME INVESTMENTS AT FIRST NATIONAL BANK OF COMMERCE IN NEW ORLEANS MR REED BOUGHT SOME OF THE NOTES FOR A MUTUAL FUND HE MANAGES THE BONDS YIELD SOMETHING SIMILAR TO A DOUBLEARATED CORPORATE BOND BUT YOU HAVE SUBSTANTIALLY HIGHER CREDIT QUALITY HE SAID BUT YOU GIVE UP SOME LIQUIDITY HE WARNED IF YOU GO TO XYZ FIRM INSTEAD OF CS FIRST BOSTON WHICH SOLD THE NOTES THEY'RE NOT GOING TO BID ON IT THAT MEANS THAT IF BOND PRICES FALL IT MAY BE DIFFICULT FOR AN INVESTOR TO SELL THE NOTES JOHN COSTAS HEAD OF GOVERNMENTBOND TRADING AT CS FIRST BOSTON SAID HIS FIRM WOULD MAKE SURE TO CONTINUE MAKING MARKETS IN THE NEW SECURITY TO MAINTAIN ITS LIQUIDITY BUT IF THE MARKET TAKES A NASTY TURN THERE IS NO GUARANTEE THAT THE NOTES WILL BE EASY TO BUY AND SELL ON FRIDAY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SOLD A SIMILAR 600 MILLION 15YEAR OFFERING OTHER FIRMS HAVE ALREADY SOLD SIMILAR VERSIONS OF THESE SECURITIES CHASE SECURITIES INC TERMED THE FIRST SUCH ISSUE IN JULY SPOTS OR SYNTHETIC PAR TREASURY SECURITIES DLJ CALLED ITS ISSUE SORTS WHILE CS FIRST BOSTON HAS DUBBED THEM TREASURYLINCS FOR ITS PART MERRILL LYNCH & CO NAMED THE SECURITIES IT ISSUED LAST NOVEMBER STEERS MERRILL LYNCH IS EXPECTED TO LAUNCH A 15YEAR SYNTHETIC ISSUE NEXT WEEK WHILE CS FIRST BOSTON AND DLJ BOTH SAY THEY WILL FOLLOW WITH ADDITIONAL ISSUES OFFICIALS AT BEAR STEARNS & CO AND LEHMAN GOVERNMENT SECURITIES INC ALSO SAY THEY ARE CONSIDERING ISSUING SIMILAR SECURITIES UNTIL 1985 THE GOVERNMENT SOLD 30YEAR BONDS THAT WERE NONCALLABLE FOR 25 YEARS SAYS LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC A FIRM THAT DOES TREASURY MARKET ANALYSIS IN 1985 THE GOVERNMENT BEGAN MAKING ALL 30YEAR BONDS NONCALLABLE NEARLY A DECADE LATER THIS CHANGE HAS RESULTED IN A SHORTAGE OF NONCALLABLE TREASURYS MATURING IN 15 YEARS ALL TREASURYS MATURING IN 15 YEARS CAN BE CALLED BY THE GOVERNMENT THIS SITUATION HAS HELPED TO LIFT THE PRICES OF TREASURYS WITH SLIGHTLY LONGER OR SHORTER MATURITIES SO HIGH THAT THEY HAVE BECOME PROHIBITIVELY EXPENSIVE FOR MANY INVESTORS DEALERS ARE TRYING TO CREATE AN ALTERNATIVE TO HIGHLY RATED CORPORATE BONDS WHICH OFFER PALTRY YIELDS AT AN EXTREMELY TIGHT YIELD SPREAD OVER COMPARABLE TREASURY SECURITIES THE NEW PRODUCTS ALSO OFFER INVESTORS HIGHQUALITY PAPER AMID A DROUGHT OF NEW ISSUES IN THE INVESTMENTGRADE CORPORATEBOND MARKET FIRMS CREATE THE SECURITIES BY GATHERING STRIPPED TREASURYS TO PRODUCE THE DESIRED INCOME STREAM THE DLJ AND CS FIRST BOSTON DEALS FOR EXAMPLE CONSIST OF 30 NONCALLABLE TREASURY STRIPS THE STRIPS ARE PLACED INTO A CUSTODIAL ACCOUNT ACTING AS COLLATERAL FOR THE SYNTHETIC BONDS THUS AN INVESTOR IS ACTUALLY BUYING A CUSTODIAL RECEIPT IN THE CASE OF THE CS FIRST BOSTON DEAL INVESTORS CAN GO TO THE CUSTODIAN AND EXCHANGE THE RECEIPT FOR THE SECURITIES WHICH PROVIDES AN ELEMENT OF LIQUIDITY THE DLJ AND CS FIRST BOSTON ISSUES AIMED AT LARGER INVESTORS WERE SOLD IN LOTS OF 100000 THE PRODUCT IS LARGELY AN INSTITUTIONAL PRODUCT SAID JOHN FRIEL A MANAGING DIRECTOR AT DLJ THE INVESTORS IN THE CS FIRST BOSTON DEAL INCLUDED STATE AND CORPORATE PENSIONFUND MANAGERS INSURANCE COMPANIES AND MONEY MANAGERS CORPORATIONS HAVEN'T IGNORED THE DEMAND FOR NONCALLABLE SECURITIES WITH 15YEAR MATURITIES THEY HAVE SOLD MANY OF THEM IN RECENT MONTHS A FLOOD OF THE NEW SYNTHETIC 15YEAR TREASURY NOTES COULD PUSH THE PRICES OF THESE CORPORATE SECURITIES LOWER ANALYSTS SAY MEANWHILE TREASURY NOTES AND BONDS CHALKED UP MODERATE GAINS YESTERDAY AS THE MARKET WAS ABLE TO WEATHER SOMEWHAT DISAPPOINTING BIDDING AT THE GOVERNMENT'S AUCTION OF NEW FIVEYEAR NOTES THE MARKET'S ABILITY TO POST GAINS IN THE FACE OF A LUKEWARM AUCTION YESTERDAY MARKED A REVERSAL FROM TUESDAY'S SESSION WHEN SLIGHTLY WEAKERTHANEXPECTED BIDDING FOR NEW TWOYEAR NOTES PROVIDED AN EXCUSE FOR TRADERS TO KNOCK PRICES LOWER THE TREASURY'S 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 100 6/32 TO YIELD 571 COMPARED WITH 573 ON TUESDAY WITH NO MAJOR ECONOMIC NEWS TO GUIDE TRADING DEALERS HAD ONLY THE TREASURY'S AUCTION OF 12 BILLION IN FIVEYEAR NOTES TO FOCUS ON THE TREASURY AWARDED THE OFFERING AT A YIELD OF 510 WHICH WAS AT THE HIGH END OF EXPECTATIONS THE DETAILS OF THE AUCTIONS MEANWHILE ALSO REVEALED SUBPAR BIDDING INTEREST THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE ACCEPTED WAS 238 TO 1 AND NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET COMMUNITY WERE 566 MILLION THAT COMPARED WITH AN AVERAGE BIDTOCOVER RATIO OF 276 TO 1 OVER THE PAST 12 AUCTIONS AND AVERAGE NONCOMPETITIVE BIDS OF 603 MILLION THE YIELD ON THE WHENISSUED FIVEYEAR NOTE FINISHED THE DAY NEAR 507 COMPARED WITH 509 LATE TUESDAY THE TWOYEAR NOTE SOLD ON TUESDAY YIELDED 412 IN WHENISSUED TRADING UNCHANGED HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF FIVEYEAR NOTES ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JAN 31 AND MATURE JAN 31 1999 INTERNATIONAL DEBT ISSUES CONTINUED TO TAKE CENTER STAGE IN THE CORPORATEBOND MARKET EKSPORTFINANS A/S PRICED A 15 BILLION SWEDISH KRONA 187 MILLION OFFERING OF GLOBAL BONDS THE NORWEGIAN EXPORT FINANCING AGENCY SOLD THE 10YEAR GLOBAL BONDS WITH A 6875 COUPON THE BONDS WERE PRICED 024 PERCENTAGE POINT ABOVE COMPARABLE SWEDISH GOVERNMENT BONDS TO YIELD 6975 THE PAPER WAS SOLD THROUGH LEAD UNDERWRITER SALOMON BROTHERS INTERNATIONAL LTD AND IS RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE AND TRIPLEA BY STANDARD & POOR'S CORP GLOBAL BONDS ARE SECURITIES ISSUED BY A CORPORATION OR A GOVERNMENT SIMULTANEOUSLY IN THE US EUROPEAN AND ASIAN MARKETS USUALLY IN A SINGLE CURRENCY EKSPORTFINANS PRICED THE LONGEST KRONADENOMINATED GLOBAL THIS YEAR OTHER OFFERINGS HAVE BEEN EITHER FIVE OR SEVENYEAR ISSUES US INVESTORS CONTINUE TO FIND EUROPEAN CURRENCY BONDS ATTRACTIVE ESPECIALLY AS THIS YEAR'S NEWISSUE CALENDAR IS SLIM SYNDICATE OFFICIALS SAID IN TRADING BONDS OF YACIMIENTOS PETROLIFEROS FISCALES SA ARGENTINA'S LARGEST OIL COMPANY ROSE AFTER THEIR SALE TUESDAY THE PRICE OF THE 8 COUPON YPF 10YEAR YANKEE NOTE WAS UP 1/2 POINT OR 5 FOR A BOND WITH A 1000 FACE VALUE TO 10027 THE YIELD DROPPED TO 793 FROM 8033 YANKEE NOTES ARE FIXEDINCOME SECURITIES SOLD IN THE US BY FOREIGN COMPANIES ATTENTION NOW TURNS TO THE PROVINCE OF ONTARIO'S FLOATINGRATE FIVEYEAR GLOBAL NOTE OFFERING EXPECTED TODAY IT MAY BE AS BIG AS 15 BILLION MARKET PARTICIPANTS SAID IN ADDITION 158 BILLION OF DEBT WAS PRICED IN THE DOMESTIC MARKET INCLUDING A 700 MILLION DEAL FROM THE STUDENT LOAN MARKETING ASSOCIATION OTHER ISSUERS INCLUDED FIRST FIDELITY BANCORP USAIR GROUP INC HOECHST AG'S HOECHST CELANESE CORP AND RIGGS NATIONAL CORP SECONDARY TRADING WAS EXTREMELY LIGHT WEDNESDAY JUNK BOND PRICES ENDED UNCHANGED INVESTMENTGRADE BOND PRICES FOLLOWED TREASURYS SLIGHTLY HIGHER MUNICIPAL BONDS FINISHED UNCHANGED TO 1/4 POINT HIGHER HELPED BY OPTIMISM ABOUT THE SLOWDOWN IN ISSUANCE THIS WEEK THE YORK COUNTY SC 570 BONDS DUE 2024 FINISHED UNCHANGED AT 99 3/4 TO 100 YIELDING 570 AMONG THIS SESSION'S GAINERS WERE THE HARRIS COUNTY TEXAS 530 BONDS DUE 2013 WHICH CLOSED 1/4 STRONGER AT 99 3/8 YIELDING 533 MEANWHILE THE MAINE STATE HOUSING AUTHORITY'S 110 MILLION OF MORTGAGEPURCHASE BONDS PRICED BY A GOLDMAN SACHS GROUP WAS GIVEN YIELDS RANGING FROM 435 IN 2000 TO 575 IN 2033 THE ISSUANCE FALLOFF IS THE KEY THING HELPING THE SECONDARY MARKET SAID A NEW YORK MUNI SPECIALIST NOTING THAT BONDS WITH 15YEAR TO 20YEAR MATURITIES ARE CURRENTLY POPULAR THE MUNICIPAL MARKET'S ISSUANCE LULL IS EXPECTED TO CONTINUE FOR A WHILE BUT NEXT WEEK'S PRICING CALENDAR INCLUDES AT LEAST ONE VERY LARGE OFFERING A BEAR STEARNS & CO INC GROUP IS EXPECTED TO PRICE THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 665 MILLION OF GENERALPURPOSE REVENUE BONDS TUESDAY AFTER OUTPACING GOVERNMENT SECURITIES IN THE MORNING MORTGAGE SECURITIES FELL BACK IN LINE WITH TREASURYS TO FINISH ONLY MARGINALLY BETTER MORTGAGE TRADING DESKS SOMETIMES LIKE TO SEE MORTGAGES FALL BEHIND TREASURYS WHENEVER UNDERWRITING GROUPS WANT TO GENERATE REAL ESTATE INVESTMENT CONDUITS AND GET THE BIGGEST BANG FROM THOSE REMICS IT'S MORE PROFITABLE TO CREATE A REMIC WHEN YIELD SPREADS BETWEEN MORTGAGES AND COMPARABLE TREASURYS ARE WIDENING BECAUSE IT'S CHEAPER FOR DEALERS TO BUY MORTGAGE SECURITIES AS COLLATERAL ONLY ONE REMIC DEAL WAS ANNOUNCED A FEDERAL NATIONAL MORTGAGE ASSOCIATION 199429 DEAL BACKED BY FANNIE MAE'S 6 1/2 SECURITIES AMONG PRICES OF 6 1/2 MORTGAGE SECURITIES FOR FEBRUARY DELIVERY GINNIE MAES WERE UP 5/32 IN LATE TRADING AT 100 3/32 FREDDIE MAC GOLDS AND FANNIE MAES ROSE 1/8 POINT TO 100 5/32 AND 100 RESPECTIVELY ADJUSTABLERATE MORTGAGES ALSO FINISHED HIGHER YESTERDAY TRADERS SAY GINNIE MAE ARMS OF ALL COUPONS GAINED 1/8 TO 1/4 POINT ON THE DAY THESE SECURITIES HAD BEEN RISING FOR MUCH OF THE PAST FEW WEEKS BUT TRAILED OFF THIS WEEK AFTER INVESTORS DECIDED THE ISSUES WERE GETTING TOO RICH JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN 9401270050 940127 HEARD ON THE STREET BOSTON CHICKEN'S OFFER OF 130 MILLION OF NOTES GETS MUCH COOLER RECEPTION THAN DID ITS IPO BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOSTON CHICKEN THE HOTTEST INITIAL PUBLIC OFFERING OF 1993 RECEIVED A MUCH COOLER RECEPTION WHEN IT SOLD CONVERTIBLE DEBT YESTERDAY JUST TWO MONTHS AFTER ITS WILDLY SUCCESSFUL IPO SOARED 143 THE FIRST DAY THE ROTISSERIECHICKEN CHAIN YESTERDAY TAPPED THE PUBLIC MARKETS AGAIN WITH A 130 MILLION CONVERTIBLENOTE OFFERING SOME TRADITIONAL CONVERTIBLENOTE BUYERS STEERED CLEAR OF THE OFFERING WHICH CARRIED JUNKCREDIT RATINGS OTHERS SOLD THEIR SECURITIES AS SOON AS THEY GOT THEM AND UNDERWRITER MERRILL LYNCH APPARENTLY WOUND UP STUCK WITH SOME OF THE SECURITIES WHICH WERE QUOTED LATE IN THE DAY ON THE NASDAQ SMALLCAP MARKET AT 99 1/4 THEY HAD BEEN PRICED AT PAR OR 100 SO INITIAL INVESTORS IN EFFECT LOST 750 FOR EACH 1000 FACE AMOUNT OF SECURITIES THEY BOUGHT YESTERDAY YESTERDAY'S LUKEWARM OFFERING SUGGESTS THAT A HOT IPO'S RADIANCE WON'T NECESSARILY EXTEND TO EVERY SECURITIES OFFERING BY THE SAME COMPANY BOSTON CHICKEN'S COMMON IS TRADING AT 348 TIMES ITS PAST YEAR'S PERSHARE EARNINGS AND 75 TIMES THE MOST OPTIMISTIC ESTIMATES FOR THIS YEAR REASONS ONE CONVERTIBLES TRADER YOU CAN'T RING THE BELL EVERY TIME IT'S AN EXCELLENT COMPANY BUT DIFFICULT TO VALUE AT THIS STAGE OF DEVELOPMENT SAYS DANIEL PINE COMANAGER OF VANGUARD GROUP'S 200 MILLION CONVERTIBLE FUND MR PINE SAYS HE DIDN'T BUY ANY OF YESTERDAY'S OFFERING EVEN THOUGH HE IS GENERALLY BULLISH ON THE CONVERTIBLE BONDS OF GROWTH COMPANIES IF I THOUGHT IT WAS GOING TO BE A BLOWOUT I WOULD HAVE BOUGHT SOME BOSTON CHICKEN'S STOCK PRICE OF 45 1/4 UP 1/2 YESTERDAY AND MORE THAN DOUBLE THE IPO OFFERING PRICE OF 20 A SHARE IS HARD TO JUSTIFY HE SAYS NOT THAT THE NAPERVILLE ILL COMPANY IS CRYING AFTER ALL THE COMPARATIVELY YOUNG COMPANY WHICH HAD YEARS OF LOSSES BEFORE TURNING A PROFIT LAST YEAR DID MANAGE TO RAISE 130 MILLION BY SELLING SOME OF THE LOWESTRATED CONVERTIBLES TO HIT THE MARKET RECENTLY MOODY'S INVESTORS SERVICE INC RATED THE NOTES SINGLEB3 AND STANDARD & POOR'S CORP TAGGED THEM TRIPLECPLUS BOTH SQUARELY IN THE JUNK CATEGORY S&P WARNED OF BOSTON CHICKEN'S HIGHRISK RAPIDGROWTH STRATEGY WITHIN AN INDUSTRY THAT ALREADY IS CONSIDERED TO HAVE ABOVEAVERAGE RISK CHARACTERISTICS MARK STEPHENS BOSTON CHICKEN'S CHIEF FINANCIAL OFFICER SAYS OF YESTERDAY'S OFFERING WE FEEL GOOD ABOUT IT HE SUGGESTS INVESTORS SHOULDN'T READ TOO MUCH INTO THE DEBT'S PRICE PERFORMANCE JUST AS THE PERFORMANCE OF THE IPO WAS AN ABERRATION GOING THE OPPOSITE DIRECTION THE EXPERIENCE OF THE IPO WHERE IT SKYROCKETED THAT PHENOMENON DIDN'T NECESSARILY INDICATE THE HISTORY OF OUR EXPERIENCE IN THE MARKET NOR DOES THE FIRST DAY OF TRADING IN THESE BONDS SAYS MR STEPHENS HE WAS SPEAKING FROM DENVER WHERE BOSTON CHICKEN JUST OPENED TWO MORE OUTLETS BRINGING THE EVERINCREASING TOTAL TO 238 THE PROCEEDS FROM YESTERDAY'S OFFERING WILL HELP FINANCE WHAT BOSTON CHICKEN CALLS ITS ACCELERATING EXPANSION PLANS WHICH NOW CALL FOR 450 STORES NATIONWIDE BY YEAR'S END MR STEPHENS CONCEDES THAT NOVEMBER'S IPO WAS A LITTLE BIT CRAZY BUT HE EMPHASIZES THAT MANAGEMENT IS IN FOR THE LONG HAUL SAYING NONE OF THE OFFICERS ARE SELLING THEIR BOSTON CHICKEN STOCK OR ARE GOING TO MR STEPHENS SAYS ANOTHER SECURITIES OFFERING IS NOT LIKELY IN 1994 WHAT HURT YESTERDAY'S OFFERING THE COMMON STOCK PRICE HAS RISEN 20 SINCE THE CONVERTIBLE OFFERING WAS ANNOUNCED JAN 7 THAT TURNED OFF INVESTORS ESPECIALLY BECAUSE THE NOTES ARE CONVERTIBLE INTO COMMON AT A RATE OF ONE SHARE FOR EACH 55938 OF NOTES OR A HIGHERTHANEXPECTED 25 ABOVE THE STOCK PRICE IN OTHER WORDS THE STOCK WOULD HAVE TO RISE ABOUT 25 FROM THE CURRENT LEVEL BEFORE A NOTE INVESTOR COULD CONVERT HIS HOLDINGS TO STOCK AND BREAK EVEN DOING SO AND THE ANNUAL INTEREST ON THE NOTES WAS SET AT JUST 45 THROUGH 2004 WHICH ISN'T THAT APPETIZING FOR A JUNK OFFERING ONE MARKET VETERAN SAYS YESTERDAY'S OFFERING ACTUALLY WENT QUITE WELL CONSIDERING THE DEAL'S JUNK RATING AND TERMS MARK HUNT HEAD OF CONVERTIBLES RESEARCH AT SMITH BARNEY SHEARSON SUGGESTS THAT THE BIG THING YESTERDAY'S OFFERING HAD GOING FOR IT WAS BOSTON CHICKEN'S POPULAR NAME ON THE PROSPECTUS IF YOU PUT A BLINDFOLD OVER PEOPLE'S EYES YOU COULDN'T HAVE SOLD IT HE SAYS THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9401270049 940127 INTERNATIONAL BRIEF KAO CORP RECORD PRETAX PROFIT IS SEEN FOR CONCERN'S CURRENT YEAR DESPITE A CONTINUING DOWNTURN IN JAPAN'S ECONOMY KAO CORP JAPAN'S LEADING MAKER OF PERSONALCARE PRODUCTS EXPECTS A RECORD PRETAX PROFIT FOR THE CURRENT FISCAL YEAR THE COMPANY'S CONTINUING COSTCUTTING EFFORTS AND RECENT SALES VOLUME GIVES KAO CONFIDENCE IT WILL MEET ITS FORECAST PRETAX PROFITS OF 46 BILLION YEN 414 MILLION ON EXPECTED SALES OF 640 BILLION YEN FOR THE YEAR ENDING MARCH 31 SAID TOMIAKI NAGASE KAO'S SENIOR MANAGING DIRECTOR THE COMPANY SAID THE PROFIT OUTLOOK IS BOOSTED PRIMARILY BY SUCH RATIONALIZATION MOVES AS REDUCING INVENTORY AND STREAMLINING SALES AND DISTRIBUTION IN PARTICULAR KAO CITES EFFICIENCIES GAINED FROM A NEW COMPUTER SYSTEM LINKING RETAILERS DIRECTLY WITH SALES AND MARKETING PEOPLE IN KAO'S HEAD OFFICE PRETAX PROFIT IS IN A BETTER POSITION THAN SALES HE SAID BUT ADDED THAT SALES ARE ALSO RUNNING ALMOST AS WE EXPECTED IF THE PROJECTED PRETAX PROFIT IS REALIZED AS ANTICIPATED IT WILL BE THE 13TH CONSECUTIVE YEAR OF RECORD PROFIT 9401270048 940127 BUSINESS BRIEFS SABENA BELGIAN AIRLINES BELGIUM JOINED DELTA AIR LINES'S FREQUENT FLYER PROGRAM FEB 1 SABENA SERVES 85 CITIES IN THE US EUROPE AFRICA AND ASIA MICHAEL ANTHONY JEWELERS INC MOUNT VERNON NY WILL DEVELOP MANUFACTURE AND DISTRIBUTE A FULL LINE OF BARBIE FOR GIRLS AND NOSTALGIC BARBIE PRECIOUSMETAL JEWELRY UNDER AN EXCLUSIVE LICENSING AGREEMENT WITH MATTEL INC BELLSOUTH CORP WILL MAKE AN INITIAL INVESTMENT OF 40 MILLION TO BUILD A NETWORK AND OFFER DOMESTIC AND INTERNATIONAL LONGDISTANCE PHONE SERVICE IN CHILE ITS CHILEAN UNIT CIDCOM LARGA DISTANCIA GOT PRELIMINARY APPROVAL FOR A LONGDISTANCE LICENSE FROM CHILE'S GOVERNMENT BUT CERTAIN LEGAL APPROVALS ARE STILL REQUIRED GOODYEAR TIRE & RUBBER CO WILL CONVERT 13 STORES IN THE PHILADELPHIA AREA TO A TIRESONLY FORMAT CALLED JUST TIRES THE JUST TIRES CONVERSION AND REMODELING PROCESS WHICH IS EXPECTED TO TAKE FOUR TO SIX WEEKS WILL BEGIN FEB 1 COLTEC INDUSTRIES INC'S MENASCO AEROSPACE LTD UNIT RECEIVED AN ORDER FROM BOEING CO SEATTLE FOR LANDINGGEAR ASSEMBLIES VALUED AT MORE THAN 100 MILLION DELIVERY WILL BEGIN IN LATE 1996 9401270047 940127 BIOVASCULAR PLANS ACQUISITION ST PAUL MINN BIOVASCULAR INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE VITAL IMAGES INC A CLOSELY HELD FAIRFIELD IOWA CONCERN THE AGREEMENT CALLS FOR BIOVASCULAR A MAKER OF MEDICAL DEVICES TO EXCHANGE ONE SHARE FOR EACH SHARE OF VITAL IMAGES COMMON AND SERIES A CONVERTIBLE PREFERRED SHARES OUTSTANDING COMPLETION IS SUBJECT TO CERTAIN CONDITIONS INCLUDING THE AVAILABILITY OF POOLING OF INTERESTS ACCOUNTING AND APPROVAL BY VITAL IMAGES HOLDERS VITAL IMAGES HAD SALES OF 13 MILLION FOR THE 10 MONTHS ENDED OCT 31 AND REPORTED A LOSS OF 776000 OF WHICH 678000 WAS ATTRIBUTED TO RESEARCH AND DEVELOPMENT EXPENSES 9401270046 940127 BUSINESS BRIEF CENTEX CORP RECOVERING HOUSING MARKET BOOSTS NET 34 FOR QUARTER CENTEX CORP REPORTED A 34 INCREASE IN FISCAL THIRDQUARTER NET INCOME CITING MARKEDLY IMPROVED RESULTS IN ITS HOME BUILDING MORTGAGE BANKING AND CONSTRUCTION PRODUCTS BUSINESSES THE DALLASBASED CONSTRUCTION AND BANKING CONCERN SAID ITS NET INCOME FOR THE PERIOD ENDED DEC 31 ROSE TO 236 MILLION OR 72 CENTS A SHARE FROM 176 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE WAS UP 28 TO 8333 MILLION FROM 6487 MILLION THE RESULTS WERE AT THE HIGH END OF ESTIMATES BY INDUSTRY ANALYSTS WHO HAD PROJECTED NET INCOME OF 64 CENTS TO 73 CENTS A SHARE FOR THE PERIOD AMID AN INCREASE IN HOME PRICES AND LOWER LUMBER PRICES CENTEX SAID THAT OPERATING EARNINGS FROM ITS HOME BUILDING UNIT ROSE 23 TO 258 MILLION FROM 21 MILLION IN THE YEAREARLIER PERIOD ON A 25 INCREASE IN REVENUE COMPARED WITH THE YEAREARLIER PERIOD HOME SALES WERE UP ABOUT 14 THE MORTGAGE BANKING UNIT'S OPERATING EARNINGS SOARED 58 TO 207 MILLION FROM 131 MILLION A YEAR EARLIER ON A 59 BOOST IN REVENUE LOOKING AHEAD CENTEX SAID THAT IT EXPECTS HOME BUILDING MARGINS TO CONTINUE TO IMPROVE DURING ITS FISCAL FOURTH QUARTER THE COMPANY ALSO SAID IT EXPECTS TO OFFSET EXPECTED DECLINES IN THE RATE OF MORTGAGE REFINANCINGS BY INCREASING ITS NUMBER OF MORTGAGE BANKING OFFICES 9401270045 940127 WHO'S NEWS PANHANDLE EASTERN CORP PANHANDLE EASTERN CORP HOUSTON SEVERAL EXECUTIVES WERE NAMED TO NEW POSITIONS RICHARD PERKINS FORMERLY EXECUTIVE VICE PRESIDENT OF THE PIPELINE COMPANY'S TEXAS EASTERN TRANSMISSION CO UNIT WAS NAMED PRESIDENT OF 1 SOURCE CORP PANHANDLE'S GAS TRANSPORTATION AND MANAGEMENT SERVICES UNIT MR PERKINS 52 YEARS OLD SUCCEEDS FRED FOWLER 47 WHO WAS NAMED PRESIDENT OF TEXAS EASTERN TRANSMISSION MR FOWLER SUCCEEDS GEORGE MAZANEC 57 WHO WAS NAMED VICE CHAIRMAN OF THE PARENT COMPANY IN DECEMBER STEVE ROVERUD 54 FORMERLY SENIOR VICE PRESIDENT OF PANHANDLE'S PANHANDLE EASTERN PIPE LINE CO WAS NAMED PRESIDENT OF THAT UNIT HE SUCCEEDS PAUL ANDERSON 48 WHO WAS NAMED PRESIDENT OF THE PARENT COMPANY IN DECEMBER 9401270044 940127 WHO'S NEWS HERO GROUP LTD HERO GROUP LTD NEW YORK WILLIAM J CARONE WAS NAMED CHAIRMAN OF THIS MAKER OF WOMEN'S CLOTHING SUCCEEDING MATTHEW A BERDON WHO HAD BEEN ACTING CHAIRMAN SINCE SEPTEMBER MR CARONE 48 YEARS OLD IS A SENIOR VICE PRESIDENT OF ROSENTHAL & ROSENTHAL A NEW YORK FINANCE COMPANY HE HAS BEEN A DIRECTOR OF HERO SINCE JAN 1 MR BERDON A PARTNER OF THE NEW YORK ACCOUNTING FIRM FERRO BERDON & CO ASSUMED THE DUTIES OF HERO CHAIRMAN AFTER THE DEATH OF HERBERT ROUNICK HERO ALSO SAID DELLA ROUNICK WAS ELECTED A DIRECTOR FILLING A VACANCY ON THE THREEMEMBER BOARD MS ROUNICK THE CONTROLLING SHAREHOLDER OF THE COMPANY IS A DESIGNER OF HERO'S EVENING WEAR 9401270043 940127 TECHNOLOGY BRIEF CRAY RESEARCH INC COMPUTER CONCERN SWINGS TO PROFIT FOR FOURTH QUARTER CRAY RESEARCH INC REVERSING A YEARAGO LOSS REPORTED EARNINGS OF 243 MILLION OR 93 CENTS A SHARE ON REVENUE OF 3026 MILLION FOR THE FOURTH QUARTER IN THE YEARAGO QUARTER THE EAGAN MINN SUPERCOMPUTER COMPANY HAD A LOSS OF 265 MILLION OR 1 A SHARE ON REVENUE OF 2273 MILLION RESULTS FOR THE 1992 FOURTH QUARTER INCLUDED A ONETIME RESTRUCTURING CHARGE OF 428 MILLION BUOYED BY THE RESULTS THE COMPANY ANNOUNCED THAT ABOUT 4500 ELIGIBLE EMPLOYEES WILL RECEIVE AN EXTRA WEEK'S PAY AS A BONUS COSTING CRAY RESEARCH ABOUT 4 MILLION THE COMPANY ATTRIBUTED ITS IMPROVED PERFORMANCE TO A COMBINATION OF INCREASED REVENUE HIGHER GROSS MARGINS ON ITS TOPOFTHELINE C916 SUPERCOMPUTERS AND LOWER OPERATING EXPENSES THE COMPANY IS PROJECTING A 1994 REVENUE INCREASE OF 10 FROM 1993 WITH CONTINUED IMPROVEMENT IN EARNINGS CRAY RESEARCH SHARES CLOSED UNCHANGED AT 2625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9401270042 940127 NEW SHADE OF RED WITH RUSSIAN REFORM WANING COMMUNISTS MOUNT A COMEBACK BUT THEY AREN'T THE MARXISTS OF OLD THE BIBLE IS OK SO IS PRIVATE PROPERTY SCANT SUPPORT FROM YOUTH BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE SCENE A CROWDED FACTORY AUDITORIUM IN CENTRAL MOSCOW UNDERNEATH A 20FOOT PORTRAIT OF LENIN GEN YURI KALININ SHOUTS TO THE ASSEMBLED FAITHFUL THE SOVIET PEOPLE WILL BE VICTORIOUS RED BANNERS ARE HOISTED HIGH AS THE CROWD BURSTS INTO SPIRITED APPLAUSE STALIN'S ERA BREZHNEV'S IN FACT THE EVENTS TOOK PLACE IN BORIS YELTSIN'S RUSSIA LAST WEEK THE PAST IS CREEPING UP ON RUSSIA'S FUTURE A RESURGENT COMMUNIST PARTY HAS NEARLY GAINED CONTROL OVER THE NEW PARLIAMENT FOREIGN POLICY IS INCHING BACK TOWARD AN EXPANSIONIST SOVIET MODEL AND CONTROL OF RUSSIA'S PARTLY REFORMED ECONOMY HAS RETURNED TO THE STATIST MILITARYINDUSTRIAL COMPLEX THE NEW MIX RECALLS THE GORBACHEV ERA WHERE A CAUTIOUS LEADERSHIP TOGGLED BETWEEN THE FAMILIAR AND REFORM WHILE THE ECONOMY NOSEDIVED IF YOU LIKED PERESTROIKA YOU'LL LOVE THIS SAYS JEFFREY SACHS A HARVARD UNIVERSITY ECONOMIST WHO RESIGNED IN DISGUST LAST WEEK AS AN ECONOMIC ADVISER TO THE RUSSIAN GOVERNMENT RUSSIA'S STEP BACKWARD ISN'T ALTOGETHER SURPRISING FOR TWO YEARS A TEAM OF REFORMERS GUIDED BY MR YELTSIN TRIED TO MOVE THE COUNTRY TOWARD A RADICAL VISION OF THE FUTURE RUSSIA WAS TO BE A DEMOCRACY WITH A FLOURISHING FREEMARKET ECONOMY IN SHORT IT WAS TO BE LIKE THE WEST BUT IN TWO YEARS THE REFORMERS COULDN'T DELIVER THE GOODS INFLATION SOARED PRODUCTION PLUMMETED A THIRD OF THE POPULATION SLIPPED BELOW THE OFFICIAL POVERTY LINE WHEN RUSSIANS HAD A CHANCE TO VOTE LAST MONTH THE VERDICT ON RADICAL REFORMS WAS A DISTINCT NYET PRESIDENT YELTSIN WOUNDED POLITICALLY HAS THROWN IN HIS LOT WITH THE GOVERNMENT'S GOSLOW TECHNOCRATS WHO NOW HEAP SCORN ON THE WESTERN MARKET MODEL THEY TRIED TO PUT AN AMERICAN SUIT ON RUSSIA SAYS GENNADY ZYUGANOV HEAD OF THE COMMUNIST PARTY BUT IT DIDN'T FIT BORIS FYODOROV WHO QUIT AS FINANCE MINISTER LAST WEEK TO PROTEST THE GOVERNMENT'S NEW CONSERVATISM WARNED MR YELTSIN YESTERDAY THAT AN ECONOMIC COUP IS TAKING PLACE IN THE COUNTRY MR FYODOROV CHARACTERIZED THE NEW GOVERNMENT AS DOMINATED BY RED INDUSTRIALISTS THE REFORMERS' DASHED DREAMS ARE A REMINDER THAT DESPITE AN OVERWHELMING DESIRE FOR REFORM WHEN THE SOVIET UNION COLLAPSED IN 1991 CHANGE DOESN'T JUST COME OVERNIGHT WHILE THE SOVIET SYSTEM CAN'T BE RECREATED FEW WOULD EVEN WANT THAT COMMUNISM'S ROOTS STILL RUN DEEP AS DO RUSSIAN SUSPICIONS TOWARD THE WEST AND FOREIGN IDEAS THE YELTSIN ERA IS PRETTY MUCH OVER GLOATS VIKTOR LINNIK WHO EDITS THE PROCOMMUNIST DAILY PRAVDA THE COMMUNISTS ARE COMING BACK BUT JUST AS SURELY AS THE OLD GUARD IS IN THE ASCENDANCY ONE CAN'T RULE OUT ANOTHER DRAMATIC REVERSAL POLITICS IN RUSSIA TENDS TO BE CYCLICAL IF PRIME MINISTER VIKTOR CHERNOMYRDIN FAILS TO TAME THE INFLATIONARY MONSTER WITH HIS GORBACHEVERA POLICIES REFORMERSINEXILE LIKE MR FYODOROV AND YEGOR GAIDAR MIGHT WIN ANOTHER CHANCE TO COMPLETE THEIR HALFFINISHED MARKET REVOLUTION FOR NOW HOWEVER IT IS THE OLD MEN'S TURN WITH THEIR EYES ON THE ROAD AND A SOMEWHAT CLOUDED REARVIEW MIRROR THEY ARE TAKING RUSSIA BACK TO THE FUTURE THERE IS A SENSE OF DEJA VU SPEAKING WITH LEONID ABALKIN A PROMINENT ECONOMIST WHO ONCE ADVISED THE GORBACHEV GOVERNMENT WHEN THE RADICAL REFORMERS TOOK OVER IN EARLY 1992 MR ABALKIN WAS UNCEREMONIOUSLY DUMPED FROM THE FRONT LINE TODAY HE IS BACK TEAMING UP WITH OTHERS FROM THE PERESTROIKA PERIOD NAMES LIKE NIKOLAI PETRAKOV AND STANISLAV SHATALIN MR ABALKIN HAS DRAWN UP A 120PAGE ECONOMIC REPORT THAT WILL SOON BE PLACED ON THE DESKS OF MESSRS YELTSIN AND CHERNOMYRDIN ITS RECOMMENDATIONS FOR A NEW COURSE CALLING FOR STATEDIRECTED ECONOMIC POLICY INCREASED SOCIAL SPENDING AND NONMONETARIST MEANS TO ATTACK INFLATION ARE ALREADY KNOWN MR CHERNOMYRDIN ALREADY IS FOLLOWING HIS ADVICE CHERNOMYRDIN FINALLY GETS IT SAYS MR ABALKIN CLEARLY PLEASED WITH HIS REEMERGENCE AS A SOUGHTAFTER ADVISER EVEN MORE SURPRISING IS THE RETURN OF THE COMMUNISTS TO THE CORRIDORS OF POWER AFTER THE FAILED COUP OF 1991 THE PARTY DIDN'T JUST LOSE ITS MONOPOLY ON POWER IT WAS HUMILIATED BRANDED AS CRIMINAL AND TEMPORARILY BANNED IN A 1992 SPEECH ON CAPITOL HILL MR YELTSIN CROWED COMMUNISM HAS COLLAPSED NEVER TO RISE AGAIN BUT IN LAST MONTH'S ELECTION THE COMMUNISTS WON THE BIGGEST SHARE OF THE ANTIYELTSIN PROTEST VOTE MUCH HAS BEEN MADE OF THE SUCCESS OF VLADIMIR ZHIRINOVSKY THE ULTRANATIONALIST WHOSE RANTINGS MAKE FOR EXCELLENT TELEVISION BUT IT WAS THE COMMUNISTS WHO DID BEST IN THE DEC 12 VOTE THE COMMUNIST PARTY AND ITS RURAL TWIN THE AGRARIAN PARTY TOOK 79 SEATS IN THE 444MEMBER STATE DUMA RUSSIA'S POWERFUL LOWER HOUSE OF PARLIAMENT MOREOVER A LARGE SHARE OF THE DUMA'S 135 INDEPENDENTS ARE THE COMMUNISTS' NATURAL ALLIES BY CONTRAST RUSSIA'S CHOICE THE MAIN PROREFORM PARTY WON JUST 65 SEATS THE SAME TOTAL WON BY MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY THE COMMUNISTS' ORGANIZATIONAL SKILLS ALREADY ARE EVIDENT A COMMUNIST FORMER ENGINEER IVAN RYBKIN WAS ELECTED SPEAKER OF THE DUMA THE COMMUNISTAGRARIAN ALLIANCE PUT 20 PEOPLE ONTO THE DUMA'S KEY COMMITTEES MORE THAN ANY OTHER FACTION AND THE COMMUNISTS HAVE SHOWN AIRTIGHT PARTY DISCIPLINE IN THEIR PARLIAMENTARY VOTING REFLECTING THE REFORMERS' FRUSTRATION PARLIAMENTARIAN ANDREI MAKAROV A PROYELTSIN LAWYER PUBLICLY SLAMMED MR GAIDAR FOR WEAK LEADERSHIP OF RUSSIA'S CHOICE AND CALLED FOR HIM TO STEP DOWN BUT THE COMMUNIST PARTY HAS ONE POTENTIALLY LETHAL WEAKNESS ITS 600000 MEMBERS ARE DRAWN MAINLY FROM RUSSIA'S GRAYING MASSES THE DISAFFECTED PENSIONERS WHO WAX NOSTALGIC FOR A BYGONE ERA THAT NO ONE SEEMED TO LIKE AT THE TIME BUT MANY NOW RECALL AS THE GLORY DAYS MARTUNI SRABOV A SENIOR COMMUNIST LEADER IN MOSCOW SITS AT THE KITCHEN TABLE REMINISCING ABOUT THE BEST PERIOD OF HIS LIFE IT WAS THE LATE 1950S AND EARLY 1960S AN ERA GENERALLY DISMISSED AS THE PERIOD OF STAGNATION PEOPLE WERE SURE OF THEMSELVES SAYS MR SRABOV SMILING SERENELY AT HIS MEMORIES WE WERE MAKING GREAT SCIENTIFIC PROGRESS THE WORLD LOVED US RESPECTED US AND FEARED US THE COMMUNISTS REALIZE THAT THEIR COMEBACK MIGHT AMOUNT TO A LAST HURRAH THE CHALLENGE IS TO APPEAR RELEVANT IN THE 1990S AND BEYOND SO THEY HAVE BEEN FIDDLING WITH THE PARTY LINE THE PARTY THAT ONCE SUMMED UP ITS ESSENCE WITH THE SINGLE PHRASE ABOLITION OF PRIVATE PROPERTY NOW FULLY EMBRACES PROPERTY OWNERSHIP GONE MOREOVER IS THE RIGOROUS ADHERENCE TO DOCTRINE AND SLOGANS THE PARTY HAS EVOLVED INTO A KIND OF COMMUNISM LITE LOOK WE HAVE TO ACCEPT REALITY SAYS VALENTIN KUPTSOV THE PARTY'S NO 2 LEADER OTHERWISE WE'RE NOT GOING TO HAVE ANY SUCCESS AT ALL MR ZYUGANOV CHAIRMAN OF THE PARTY'S CENTRAL COMMITTEE IS A FORMER PHILOSOPHY STUDENT AND LONGTIME PARTY FUNCTIONARY THOUGH WORKING IN TEMPORARY QUARTERS THAT LACK FURNITURE AND ADEQUATE TELEPHONES HE OCCUPIES A POST FORMERLY HELD BY THE LIKES OF LENIN STALIN AND GORBACHEV STILL HE SEEMS MORE AN APOLOGETIC FIGURE THAN A STANDARDBEARER THE COMMUNIST PARTY OF THE SOVIET UNION MADE A MAJOR MISTAKE IN DEMANDING A MONOPOLY OF POWER SAYS MR ZYUGANOV A BALDING 49YEAROLD MAN WITH SOFT BLUE EYES AND A POLITE QUIET DEMEANOR WE ARE AGAINST ALL EXTREMES WE ARE SEARCHING FOR A BALANCE THE IDEOLOGICAL INHERITANCE ALSO IS HAZY THE NEW PARTY SEEMS CONTENT TO PICK AND CHOOSE FROM THE FORMERLY SACRED TEXTS DISCARDING WHAT DOESN'T SUIT IT MARX ENGELSTHEY WERE ALL GOOD PEOPLE SAYS MR ZYUGANOV BUT THEIR THEORIES CAME FROM ANOTHER ERA THAT DOESN'T FIT WITH THE PRESENT WHAT WRITINGS DOES MR ZYUGANOV VALUE CLEVER BOOKS WITHOUT IDEOLOGY HE SAYS THE BIBLE'S GOOD AND THE KORAN SPEAKING AT THE PARTY'S CHAOTIC HEADQUARTERS WHERE AIDES AND VISITORS TROOP IN AND OUT MR KUPTSOV TRIES TO CLARIFY THE PARTY'S VIEWS THE MAIN PRINCIPLES OF MARXISMLENINISM REMAIN IN OUR PROGRAM HE DECLARES LIKE WHAT WELL JUSTICE HE SAYS AFTER A LONG PAUSE AND WE'RE AGAINST EXPLOITATION THE MOST IMPORTANT POLITICAL BATTLE IS BEING FOUGHT OVER THE HEARTS AND MINDS OF RUSSIA'S YOUNG GENERATION THE COMMUNISTS KNOW THEY FACE AN UPHILL STRUGGLE INDEED IT TAKES MR SRABOV THE MOSCOW PARTY OFFICIAL SEVERAL DAYS TO LOCATE A SINGLE YOUTHFUL PARTY RECRUIT IN THE WHOLE MOSCOW REGION THE RECRUIT ALEXANDER VASILIEV TURNS OUT TO BE A SCRAGGLY YOUNG FACTORY WORKER HE BECAME INTERESTED IN THE PARTY IN SEPTEMBER AFTER MR YELTSIN SUDDENLY ABOLISHED RUSSIA'S CONSERVATIVE PARLIAMENT AS THE TENSE STANDOFF DEVELOPED MR VASILIEV TOOK TO THE STREETS BRANDISHING A STEEL ROD TO ASSIST IN DEFENDING THE PARLIAMENT WHEN THINGS TURNED VIOLENT AND ARMED CROWDS TRIED TO TAKE OVER THE STATE TELEVISION TOWER MR VASILIEV WAS AMONG THEM NOW HE IS ANGRY AND POLITICIZED HE IS FED UP WITH RUSSIA'S ECONOMIC PROBLEMS AND HE WANTS TO BECOME A COMMUNIST I WORKED AT THE FACTORY ACROSS THE STREET HE SAYS IT STOPPED WORKING THIS WHOLE REGION HAS STOPPED I DON'T KNOW HOW PEOPLE SURVIVE LEADING THE YOUNG MAN'S INDOCTRINATION IS VIKTOR KUZNETSOV LEADER OF THE LOCAL PARTY CELL IN THE INDUSTRIAL MOSCOW SUBURB OF MYTYSHI MR KUZNETSOV'S BADGE OF HONOR HE SPENT FOUR DAYS IN JAIL AFTER THE VIOLENT CLASHES OF OCTOBER DURING A CELL MEETING THE YOUNG RECRUIT MOSTLY READS THE NEWSPAPER HE KEEPS HIS FUR HAT ON EVEN AS THE OTHERS MOSTLY RETIREES IN THEIR 60S PLACE THEIRS ON THEIR LAPS STILL HE IS THIS CELL'S HOPE FOR THE FUTURE THE COMMUNIST PARTY WILL RETURN TO POWER SAYS MR KUZNETSOV AND WE NEED A YOUNG CADRE BY CONTRAST MOST YOUNG PEOPLE INCLUDING MR VASILIEV CONCEDES HIS OWN FRIENDS SEEM MORE EAGER TO TRY TO TAKE ADVANTAGE OF WHAT THE NEW WORLD OFFERS THESE ARE PEOPLE WHO TEND TO SUPPORT THE REFORM POLICIES BUT WHO POLL TAKERS SAY MOSTLY STAYED HOME DURING THE ELECTION AS THE YELTSINGAIDAR PARTY RUSSIA'S CHOICE WAS GETTING ROUTED AT THE POLLS ON DEC 12 TATIANA GURINA MANNED HER DOWNTOWN MOSCOW KIOSK WITHOUT A SHRED OF CONCERN TOWARD POLITICS ALTHOUGH HER BUSINESS SELLING MOSTLY IMPORTED LIQUORS AND FOODS OWES EVERYTHING TO MR GAIDAR'S REFORMS SHE DOESN'T FEEL THE NEED TO VOTE I DON'T CARE ABOUT ALL THOSE POLITICIANS SHE SAYS THE RESULT POLITICS HAS BEEN LEFT MAINLY IN THE HANDS OF THE DISAFFECTED IF THE YELTSIN ERA IS WINDING UP THE CHERNOMYRDIN ERA HAS JUST BEGUN MR CHERNOMYRDIN 55 A FORMER MEMBER OF THE COMMUNIST PARTY CENTRAL COMMITTEE GENERALLY GETS HIGH MARKS FOR HIS PAST WORK RUNNING RUSSIA'S GAS MONOPOLY GASPROM THE US GOVERNMENT WHICH HAD WORKED CLOSELY WITH THE PRIME MINISTER BEFORE HE ANNOUNCED HIS NEW CONSERVATIVE CABINET AND DECLARED AN END TO MARKET ROMANTICISM LAST WEEK HAS PORTRAYED HIM AS A REFORMER ADVISERS TO THE RUSSIAN GOVERNMENT SEE IT DIFFERENTLY BELIEVE ME HE'S A CONSERVATIVE SAYS MR SACHS OF HARVARD ALL SUMMER LONG CHERNOMYRDIN BLOCKED ATTEMPTS TO PUSH FASTER REFORMS MR CHERNOMYRDIN EPITOMIZES THE GOSLOW INDUSTRIALISTS WHO NOW CONTROL THE LEVERS OF ECONOMIC POWER HE WANTS REFORM RUSSIANS ALL SAY THEY FAVOR REFORM BUT HE ALSO WANTS STABILITY AND BELIEVES THAT ONLY THE GUIDING HAND OF THE STATE CAN PROTECT THAT BALANCE HE FAVORS CONTINUING SUBSIDIES TO WEAK INDUSTRIES AND TO THE AGRICULTURAL SECTOR AND HE IS DISCUSSING STEPPEDUP STATE INTERVENTION INCLUDING WAGE AND PRICE CONTROLS AS POWER AND THE POPULAR MOOD SHIFT TO A MORE CONSERVATIVE TACK MR YELTSIN SEEMS TO BE GOING ALONG AT LEAST FOR NOW AIDES SAY HE WAS PROFOUNDLY DISAPPOINTED WITH MR GAIDAR'S FAILURE TO PRODUCE PROMISED ECONOMIC GAINS IN TWO YEARS YELTSIN HAS FINELY TUNED POLITICAL INSTINCTS SAYS MR ABALKIN THE ECONOMIST HE IS STARTING TO FEEL THAT HE WAS DECEIVED BY THE REFORMERS FOREIGN MINISTER ANDREI KOZYREV ALSO IS ADJUSTING TO THE POLITICAL WINDS LONG CRITICIZED FOR BEING OVERLY PROWEST MR KOZYREV STUNNED THE DIPLOMATIC COMMUNITY LAST WEEK WHEN HE CALLED FOR RUSSIA TO MAINTAIN A MILITARY PRESENCE IN THE FORMER SOVIET REPUBLICS INCLUDING THE BALTICS MOSCOW CONSIDERS ITS NEAR ABROAD TO BE PART OF A RUSSIAN SPHERE OF INFLUENCE IN THE END PRIME MINISTER CHERNOMYRDIN AND HIS GOSLOW TEAM MAY HAVE NO MORE SUCCESS THAN THEIR PREDECESSORS RUSSIA IS CAUGHT BETWEEN THE TWIN CRISES OF PLUMMETING INDUSTRIAL OUTPUT AND THE THREAT OF HYPERINFLATION THAT SQUEEZE LIMITS MR CHERNOMYRDIN'S POLICY OPTIONS AND PERHAPS DOOMS HIS POLITICAL CAREER WAITING IN THE WINGS TO FORM THE NEXT GOVERNMENT THE REFORMERS THE ULTRANATIONALISTS AND THE NEW COMMUNIST PARTY 9401270041 940127 MERRILL'S PARTNERSHIP SALES IN '80S STUDIED BY REGULATORS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL AND STATE REGULATORS ARE EXAMINING MERRILL LYNCH & CO'S SALES PRACTICES INVOLVING LIMITED PARTNERSHIPS IN THE 1980S PEOPLE FAMILIAR WITH THE MATTER SAY THE INQUIRIES BY THE SECURITIES AND EXCHANGE COMMISSION AND THE STATES OF FLORIDA VIRGINIA AND NEW MEXICO ARE IN THE VERY PRELIMINARY STAGES THE PEOPLE SAID REGULATORS HAVE BEGUN TO GATHER MERRILL DOCUMENTS INCLUDING SALES MATERIALS AND SCRIPTS USED BY BROKERS TO SELL THE PARTNERSHIPS THE PEOPLE SAID THE CONCERN IS THAT THE HIGHRISK PARTNERSHIPS MAY HAVE BEEN SOLD AS SURE THING INVESTMENTS TO CLIENTS SEEKING SAFETY AND RETIREMENT INCOME NOBODY IS SUGGESTING THAT THERE WAS THE KIND OF WIDESPREAD FRAUD AT MERRILL OR ANY OTHER BIG BROKERAGE FIRM THAT HAS DOGGED PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA THIS IS VERY PRELIMINARY SAID A PERSON FAMILIAR WITH ONE OF THE INVESTIGATIONS WE DON'T KNOW IF THIS WILL AMOUNT TO A BIG THING OR NOT IN A STATEMENT MERRILL SAID WE HAVE RECEIVED ABSOLUTELY NO COMMUNICATION FROM THE SEC AS TO ANY INQUIRY LET ALONE ANY INVESTIGATION THAT WOULD INVOLVE MERRILL LYNCH AS THE FOCUS OF ANY LIMITEDPARTNERSHIP SALES PRACTICES THESE LATEST EXAMINATIONS COME AS THE SEC HAS LAUNCHED A BROAD SURVEY OF MAJOR BROKERAGE FIRMS TO GAUGE THEIR PARTNERSHIP SALES AND INVESTOR COMPLAINT LEVELS WALL STREET EXECUTIVES SAID NOT UNEXPECTEDLY THE SEC HAS INITIATED A STREETWIDE SURVEY RELATED TO THE SALES OF LIMITED PARTNERSHIPS IN THE 1980S MERRILL SAID IN A STATEMENT NO SINGLE FIRM IS THE FOCUS OF THIS SURVEY IT IS OUR UNDERSTANDING THAT ALL OF THE FIRMS ARE RESPONDING TO THE SEC REQUESTS FOR INFORMATION PART OF THE MERRILL INQUIRY RELATES TO THE BROADER SURVEY AND PART ALSO RELATES TO SPECIFIC COMPLAINTS MADE ABOUT MERRILL TO A BRANCH OFFICE OF THE SEC THE PEOPLE SAID THE INCREASED REGULATORY SCRUTINY COMES IN THE WAKE OF THE HIGHLY PUBLICIZED PARTNERSHIP WOES AT PRUDENTIAL THE BIG BROKERAGE FIRM RECENTLY SETTLED ALLEGATIONS BROUGHT BY THE SEC AND 50 STATES OF WIDESPREAD FRAUD IN SELLING THE PARTNERSHIPS AS PART OF THE SETTLEMENT THE FIRM HAS SET UP A REPARATIONS FUND OF AT LEAST 330 MILLION FOR INVESTORS OTHER MAJOR WALL STREET BROKERAGE FIRMS COULD ULTIMATELY FACE FALLOUT FROM PARTNERSHIP SCRUTINY SOME ANALYSTS SAY THE POTENTIAL LIABILITY FROM THESE PARTNERSHIPS AT THE VERY MINIMUM COULD PUT DOWNWARD PRESSURE ON BROKERAGE COMPANY EARNINGS AND COULD POSSIBLY HAVE A MUCH GREATER IMPACT ON THEIR BOTTOM LINES NANCY ZAMBELL AN ANALYST AT JW CHARLES SECURITIES INC IN BOCA RATON FLA SAID IN A RECENT RESEARCH REPORT THOUGH MOST WALL STREET FIRMS HAVE STOPPED PEDDLING PARTNERSHIPS PARTNERSHIP HEADACHES ARE STILL OUT THERE SAYS MS ZAMBELL THE NATION'S BROKERAGE FIRMS HAVE SOLD A TOTAL OF 90 BILLION OF PUBLIC PARTNERSHIPS SINCE 1980 SAYS KEITH ALLAIRE A MANAGING DIRECTOR AT THE STANGER REPORT A SHREWSBURY NJ NEWSLETTER MANY PARTNERSHIPS WHICH WERE HURT BY TAXLAW CHANGES AND THE REALESTATE SLUMP HAVE TRIGGERED LAWSUITS BY INVESTORS MERRILL THE NATION'S LARGEST BROKERAGE FIRM WAS AMONG THE MAJOR SELLERS OF PARTNERSHIPS AT THE PINNACLE OF THE PARTNERSHIP FRENZY IN 1988 FOR INSTANCE MERRILL HAD 175 BILLION OF PUBLIC PARTNERSHIP ASSETS UNDER MANAGEMENT PLUS PARTNERSHIP DEALS IT MARKETED FOR OTHER SPONSORS ACCORDING TO STANGER MERRILL SAYS IT STOPPED MARKETING LEVERAGED PARTNERSHIP DEALS AS EARLY AS 1983 AND DOESN'T HAVE SIGNIFICANT PARTNERSHIP LIABILITY THE SEC AS IS ITS PRACTICE DECLINED TO COMMENT THE OFFICE OF FLORIDA COMPTROLLER GERALD LEWIS HAS RECEIVED CERTAIN INFORMATION REGARDING SOME OF THE PARTNERSHIP PROGRAMS AT MERRILL AND WE HAVE THE MATTER UNDER REVIEW SAID DONALD SAXON DIRECTOR OF THE FLORIDA DIVISION OF SECURITIES NANCY SMITH NEW MEXICO'S SECURITIES DIRECTOR AND LEWIS BROTHERS VIRGINIA SECURITIES DIRECTOR SAID THEY COULDN'T CONFIRM OR DENY WHETHER AN INVESTIGATION WAS UNDER WAY IN A STATEMENT MERRILL SAID WE ROUTINELY RECEIVE INQUIRIES FROM STATES REGARDING CUSTOMER COMPLAINTS WE ROUTINELY RESPOND TO THEM NOTHING IS GOING ON AT THE STATE REGULATORY FRONT THAT IS ANY WAY OUT OF THE ORDINARY BUT REGULATORS ARE SAID TO BE EXAMINING MERRILL SALES SCRIPTS FOR SEVERAL PARTNERSHIPS FOR INSTANCE INTERNAL MERRILL SALES SHEETS FOR THE JMB/HAWAII PARTNERSHIP URGE BROKERS TO EMPHASIZE THE BEAUTY OF HAWAII ASK THE CLIENT IF THEY HAVE EVER VISITED HAWAII THE SALES SCRIPT SAYS ANOTHER SALES SHEET FOR THE REGISTRY HOTEL AT PELICAN BAY A PARTNERSHIP THAT MERRILL UNDERWROTE THAT HAS SOURED SAID THIS IS NOT A HIGH RISK INVESTMENT ALTHOUGH IT HAS HIGH RETURNS MERRILL DECLINED TO COMMENT ON THE SCRIPTS BUT THE FIRM SAYS IT WON A CLASSACTION SUIT IN AUGUST 1992 THAT HAD BEEN FILED IN A MICHIGAN FEDERAL COURT OVER SALES OF THE REGISTRY HOTEL PARTNERSHIP THAT CASE IS NOW BEING APPEALED MERRILL SAYS MEANWHILE REGULATORS ALSO ARE EXAMINING WHETHER MERRILL AND OTHER BROKERAGE FIRMS PRESENTED INVESTORS WITH FULL AND PROPER DISCLOSURE BEFORE SELLING THEM THE PARTNERSHIPS AS STIPULATED BY APPENDIX F OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS RULES OF FAIR PRACTICE BROKERS OFTEN USED SALES SCRIPTS IN SELLING PARTNERSHIPS AND MAILED PROSPECTUSES TO INVESTORS WITH THEIR SALES CONFIRMATION STATEMENTS MANY WALL STREET FIRMS WHEN SELLING PARTNERSHIPS FLAT OUT DIDN'T FOLLOW THE RULES SAYS THOMAS R GRADY A NAPLES FLA LAWYER REPRESENTING CLIENTS WITH CASES AGAINST MERRILL AND OTHER BROKERS FOR THEIR PART REGULATORS SAY THE PRUDENTIAL PARTNERSHIP PROBLEMS HAVE TRIGGERED A HEIGHTENED SCRUTINY OF WALL STREET WE'RE ALL WELL AWARE THAT LIMITED PARTNERSHIPS WERE A BIG SELLING ITEM IN THE '80S AND CERTAINLY ARE CONCERNED ABOUT WHETHER OR NOT SOME OF THE SALESPRACTICE ABUSES OCCURRED AT SOME OTHER FIRMS BESIDES PRUDENTIAL SAYS MS SMITH NEW MEXICO'S SECURITIES DIRECTOR 9401270040 940127 WHAT'S NEWS BUSINESS & FINANCE FORD PLANS TO UNVEIL A USEDVEHICLE LEASING PROGRAM WHICH COULD LEAD TO A SHIFT IN CARBUYING HABITS THE POPULARITY OF LEASING HAS RISEN IN RECENT YEARS AS NEWCAR PRICES INCREASED AND LEASES ACCOUNTED FOR 20 OF LIGHTVEHICLE SALES IN 1993 THE PROGRAM COULD HELP FORD HANDLE MORE THAN 250000 LEASED VEHICLES SCHEDULED TO BE RETURNED TO DEALERS THIS YEAR SCOTT PAPER TOOK A 381 MILLION FOURTHQUARTER CHARGE FOR A RESTRUCTURING THAT INCLUDES 8300 JOB CUTS OR 25 OF THE STAFF AND SOME PLANT CLOSURES ADVANCED MICRO SAID IT WILL SUPPLY MICROCHIPS TO COMPAQ GAINING A FOOTHOLD TO CHALLENGE CHIP LEADER INTEL SEPARATELY COMPAQ REPORTED A 70 JUMP IN FOURTHQUARTER EARNINGS MERRILL LYNCH'S SALES PRACTICES INVOLVING LIMITED PARTNERSHIPS IN THE 1980S ARE BEING EXAMINED BY THE SEC AND REGULATORS FROM SEVERAL STATES PEOPLE FAMILIAR WITH THE MATTER SAY DUPONT UNION CARBIDE AND OLIN HAD MIXED RESULTS IN THE FOURTH QUARTER BUT OPERATING EARNINGS AT ALL THREE SHOWED MARKED IMPROVEMENT FROM THE GENERALLY WEAK YEAREARLIER PERIOD THREE MAJOR UNIONS AT USAIR ARE FIGHTING TO REPRESENT 13500 WORKERS IN ONE OF THE BIGGEST CONTESTS IN YEARS PEPSICO PLANS TO INVEST 350 MILLION IN CHINA OVER FIVE YEARS MATCHING EQUALLY BULLISH EFFORTS BY RIVAL COCACOLA IN THE LARGELY UNTAPPED MARKET ARMCO PLANS TO VIRTUALLY ELIMINATE ITS ROLE IN A CARBONSTEEL JOINT VENTURE WITH KAWASAKI STEEL BY ALLOWING THE VENTURE TO SELL SHARES TO THE PUBLIC THE VALUE OF CONSTRUCTION CONTRACTS FELL 4 IN DECEMBER FOR THE SECOND MONTH IN A ROW TOTAL CONSTRUCTION IN 1993 INCREASED 5 TO 264 BILLION BETHLEHEM STEEL'S LOSS WIDENED IN THE FOURTH QUARTER AFTER A RESTRUCTURING CHARGE THE COMPANY'S SALES ROSE 14 ON HIGHER DEMAND AND PRICES BORDEN POSTED A BIG FOURTHQUARTER LOSS COMPARED WITH A YEARAGO PROFIT REFLECTING A RESTRUCTURING CHARGE AND LOSSES IN SEVERAL FOOD BUSINESSES TOKYO STOCKS ROSE 26 WEDNESDAY PROPELLED BY FOREIGN BUYING DESPITE JAPAN'S POLITICAL STALEMATE PHILIP MORRIS'S PROFIT FELL 72 FOR THE FOURTH QUARTER HURT IN PART BY A CUT IN ITS PREMIUMCIGARETTE PRICES US SHOE PLANS TO ELIMINATE 700 JOBS OR 18 OF ITS WORK FORCE AND TAKE A RELATED FOURTHQUARTER CHARGE CHEVRON IS EXPECTED TO CONSOLIDATE ITS US OPERATIONS FURTHER AIMING TO SAVE AN EXTRA 250 MILLION THIS YEAR AIR CANADA IS DROPPING LITIGATION THAT HAS BLOCKED CANADIAN AIRLINES' PARENT FROM AN ALLIANCE WITH AMR BONDS LEHMAN BROTHERS TREASURY INDEX 559655 UP 1619 COMMODITIES OIL 1547 A BARREL UP 30 CENTS DOW JONES FUTURES INDEX 14199 OFF 066 SPOT INDEX 12951 OFF 002 DOLLAR 11005 YEN OFF 085 17450 MARKS OFF 00046 9401270039 940127 AIR CANADA WITHDRAWS LAWSUIT TO BLOCK ALLIANCE INVOLVING TWO OTHER CARRIERS BY CHRISTOPHER J CHIPELLO AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL AIR CANADA SAID IT IS DROPPING LITIGATION THAT HAS BLOCKED PWA CORP THE FINANCIALLY TROUBLED PARENT OF CANADIAN AIRLINES INTERNATIONAL FROM CONCLUDING AN ALLIANCE WITH AMR CORP THE SURPRISE MOVE CAME AMID INDICATIONS THE CANADIAN GOVERNMENT MAY BE PREPARING TO GRANT AIR CANADA LONGSOUGHT ASIAN ROUTES PWA HAS ARGUED THAT IT WOULD BE SERIOUSLY HARMED IF AIR CANADA IS ALLOWED TO FLY TO JAPAN OR HONG KONG STRONG MARKETS FOR PWA PWA AND AMR WELCOMED AIR CANADA'S ANNOUNCEMENT BUT THEY STOPPED SHORT OF SAYING AMR'S PROPOSED INVESTMENT OF 246 MILLION CANADIAN DOLLARS US1873 MILLION FOR A 33 STAKE IN CANADIAN AIRLINES IS NOW A SURE THING A PWA SPOKESWOMAN NOTED THAT OTHER LEGAL CHALLENGES MAY REMAIN AMR ALSO MUST STILL CONDUCT A DUEDILIGENCE EXAMINATION OF CANADIAN AIRLINES THE LEGAL CHALLENGES BY AIR CANADA AND OTHERS HAVE CENTERED ON CANADIAN AIRLINE'S EFFORT TO WITHDRAW ITS DATA PROCESSING BUSINESS FROM THE GEMINI GROUP AUTOMATED RESERVATIONS SYSTEM SHARED BY THE TWO CANADIAN CARRIERS AND SHIFT IT TO AMR'S SABRE NETWORK A KEY CONDITION OF AMR'S PROPOSED INVESTMENT GEMINI IS JOINTLY OWNED BY PWA AIR CANADA AND A SUBSIDIARY OF GALILEO INTERNATIONAL WHICH IS OWNED BY A CONSORTIUM OF US AND EUROPEAN AIRLINES SABRE IS GEMINI'S MAIN COMPETITOR IN CANADA CANADA'S COMPETITION TRIBUNAL A QUASIJUDICIAL AGENCY APPROVED IN NOVEMBER CANADIAN AIRLINES' WITHDRAWAL FROM GEMINI GROUP BUT AIR CANADA GEMINI AND THE GALILEO UNIT COVIA CANADA CORP APPEALED THE RULING TO CANADA'S FEDERAL COURT OF APPEAL IT ISN'T CLEAR WHETHER GEMINI AND COVIA INTEND TO PROCEED WITH THE APPEAL WITHOUT AIR CANADA GEMINI OFFICIALS DECLINED COMMENT AND COVIA OFFICIALS DIDN'T RETURN PHONE CALLS FOR ITS PART AIR CANADA SEEMED RESIGNED TO THE PWAAMR TIEUP IT IS NOW TIME FOR BOTH AIR CANADA AND PWA TO MOVE FORWARD AND FOCUS ON THE TASK OF REBUILDING OUR INDUSTRY AIR CANADA SAID A SPOKESMAN FOR THE MONTREAL CARRIER DECLINED TO SAY WHY AIR CANADA DECIDED TO DROP ITS LEGAL CHALLENGES PREVIOUSLY COMPANY OFFICIALS HAD INDICATED THEY WOULD EXHAUST ALL LEGAL OPTIONS MEANWHILE CANADIAN TRANSPORT MINISTER DOUG YOUNG SAID IN OTTAWA THAT THE GOVERNMENT EXPECTS TO DECIDE VERY SOON WHETHER TO GRANT AIR CANADA'S RECENT REQUEST FOR ACCESS TO KANSAI AIRPORT IN OSAKA JAPAN WHICH IS SCHEDULED TO OPEN LATER THIS YEAR AIR CANADA IS ALSO SEEKING ACCESS TO HONG KONG CANADIAN AIRLINES INTERNATIONAL BASED IN CALGARY ALBERTA CURRENTLY IS THE ONLY CANADIAN CARRIER SERVING THOSE MARKETS AIR CANADA FIRST APPLIED FOR ACCESS TO JAPAN IN 1988 AND TO HONG KONG IN 1990 BUT CANADA'S PREVIOUS CONSERVATIVE GOVERNMENT NEVER GRANTED THE ROUTES THE CURRENT GOVERNMENT WAS FORMED BY THE LIBERAL PARTY AFTER ELECTIONS LAST OCTOBER AIR CANADA SAYS IT IS BEING UNFAIRLY DENIED ACCESS TO FASTGROWING ASIAN MARKETS YESTERDAY'S DEVELOPMENTS PROMPTED SPECULATION THAT AIR CANADA HAD STRUCK A DEAL TO DROP ITS LITIGATION IN RETURN FOR ACCESS TO JAPAN BUT MR YOUNG THE TRANSPORT MINISTER SAID AIR CANADA'S DECISION HAS NOTHING TO DO WITH ASIAN ROUTES SHARES OF BOTH CANADIAN CARRIERS WERE BOLSTERED BY THE DEVELOPMENTS IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE PWA CLOSED AT C150 A SHARE UP 30 CANADIAN CENTS AIR CANADA SHARES CLOSED AT C6 UP 50 CANADIAN CENTS 9401270038 940127 LEACH INTRODUCES MEASURE TO REGULATE DERIVATIVES WASHINGTON REP JAMES LEACH R IOWA INTRODUCED A WIDERANGING BILL TO BOLSTER FEDERAL REGULATION OF DERIVATIVES ONE OF THE FINANCIAL WORLD'S FASTESTGROWING PRODUCTS THE PROPOSAL WOULD CREATE THE FEDERAL DERIVATIVES COMMISSION TO DRAFT UNIFORM ACCOUNTING CAPITAL AND OTHER STANDARDS FOR DERIVATIVES WHICH ARE FINANCIAL INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGNEXCHANGE RATES AND COMMODITIES PRICES THE BILL WOULD PLACE A NEW LAYER OF FEDERAL REGULATION OVER INSURANCE COMPANIES WHICH AREN'T CURRENTLY REGULATED BY WASHINGTON IT WOULD ALSO IMPOSE NEW MINIMUM PRUDENTIAL STANDARDS ON USERS OF DERIVATIVES INCLUDING MUNICIPALITIES AND PENSION FUNDS MUTUAL FUNDS THAT USE DERIVATIVES WOULD BE REQUIRED TO DISCLOSE THE RISKS THEY FACE THE BILL IS CERTAIN TO TRIGGER STIFF OPPOSITION FROM THE SECURITIES INDUSTRY ONE PURPOSE OF THE COMMISSION WOULD BE TO MAKE SURE THAT BANKS BROKERS INSURANCE COMPANIES AND OTHERS THAT WRITE AND DEAL IN DERIVATIVES WILL PLAY BY THE SAME RULES THE BILL ALSO WOULD INSTRUCT THE FEDERAL RESERVE BOARD TO SEEK MORE UNIFORMITY AMONG INTERNATIONAL STANDARDS 9401270037 940127 MARKETING & MEDIA DOW JONES TO OFFER NEWS OVER INTERNET BY MID'94 NEW YORK DOW JONES & CO SAID IT WILL PROVIDE FINANCIAL NEWS OVER THE INTERNET BY MID1994 THE SERVICE TO BE CALLED DOWVISION ON THE INTERNET WILL INCLUDE THE FULL TEXT OF THE WALL STREET JOURNAL AND SAMEDAY TEXT OF THE NEW YORK TIMES NEWS SERVICE THE DOW JONES NEWS SERVICE DOW JONES INTERNATIONAL NEWS SERVICE AND PRESSRELEASE SERVICES USERS OF THE INTERNET THE GLOBAL NETWORK LINKING THOUSANDS OF COMPUTER NETWORKS WILL BE ABLE TO RECEIVE THE FINANCIAL NEWS USING SOFTWARE THAT HELPS PEOPLE NAVIGATE AND SEARCH THE INTERNET DOW JONES SAID IT WILL CHARGE A FLAT MONTHLY FEE STILL TO BE DETERMINED DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONICDATA SERVICES 9401270036 940127 INTERNATIONAL RUSSIAN PROSECUTOR OPENS PROBE AGAINST ZHIRINOVSKY MOSCOW THE RUSSIAN PROSECUTOR GENERAL'S OFFICE OPENED A CRIMINAL INVESTIGATION AGAINST THE EXTREME NATIONALIST MEMBER OF PARLIAMENT VLADIMIR ZHIRINOVSKY ACCORDING TO NEWS AGENCIES HERE THE PROBE WAS REPORTEDLY PROMPTED BY COMPLAINTS THAT MR ZHIRINOVSKY HAD BEEN SPREADING WAR PROPAGANDA MR ZHIRINOVSKY AT A NEWS CONFERENCE WEDNESDAY DENIED THESE REPORTS FORGET ABOUT ANYONE TRYING TO OPEN A CRIMINAL CASE AGAINST ME BETTER THINK ABOUT THOSE AGAINST WHOM CRIMINAL CASES WILL REALLY BE OPENED IN THE NEAR FUTURE HE SAID REFERRING TO HIS CRITICS UNDER RUSSIA'S CRIMINAL CODE A PERSON CONVICTED OF PEDDLING WAR PROPAGANDA COULD BE SENTENCED TO THREE TO EIGHT YEARS IN PRISON THOUGH MR ZHIRINOVSKY'S MEMBERSHIP IN PARLIAMENT CONFERS IMMUNITY HE COULD STILL BE CONVICTED FOR ACTS COMMITTED BEFORE HE WAS ELECTED ON DEC 12 AMONG THOSE WHO HAVE RECENTLY ACCUSED MR ZHIRINOVSKY OF SPREADING WAR PROPAGANDA IS FORMER FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR WHO EARLIER THIS MONTH RESIGNED FROM PRESIDENT BORIS YELTSIN'S CABINET IN PROTEST AGAINST A BACKWARD TILT IN ECONOMIC POLICY 9401270035 940127 PENA IS LIKELY TO PROPOSE WIDENING SUPER BOWL WASHINGTON UNIVERSITY OF WISCONSIN FOOTBALL FANS WHO DISCOVERED TOO LATE THEY HAD NO ROSE BOWL TICKETS HAVE BADGERED FEDERAL OFFICIALS INTO EXPANDING A RULE THAT PROTECTS PROFOOTBALL FANS FROM SUCH MISHAPS TRANSPORTATION SECRETARY FEDERICO PENA IS EXPECTED TO PROPOSE TODAY THAT THE RULE WHICH REQUIRES TOURPACKAGE OPERATORS TO HAVE SUPER BOWL TICKETS IN HAND IF THE DEAL THEY ARE MARKETING INCLUDES TICKETS BE EXTENDED TO ANY COLLEGEFOOTBALL BOWL GAME AND THE FINAL FOUR COLLEGEBASKETBALL TOURNAMENT GAMES SEN HERB KOHL D WIS INTRODUCED LEGISLATION TUESDAY TO ACCOMPLISH THE SAME THING SAYING THAT AS MANY AS 2000 BADGER FANS PURCHASED TRAVEL PACKAGES FOR THE JAN 1 ROSE BOWL AND THEN ARRIVED IN CALIFORNIA TO FIND OUT THE TICKETS DIDN'T EXIST HUNDREDS OF THOSE HAD TO WATCH THE EVENT ON TV IN A ROOM NEARBY THE STADIUM MR KOHL SAID THE TRANSPORTATION DEPARTMENT WHICH ENACTED THE SUPER BOWL RULE IN 1980 SAID IT HASN'T DETECTED ANY VIOLATIONS IN RECENT YEARS EXPANDING THE RULE REQUIRES A FORMAL RULEMAKING PROCEEDING INCLUDING A PERIOD FOR PUBLIC COMMENT 9401270034 940127 DIVIDEND NEWS PYXIS CORP PYXIS CORP SAN DIEGO A MAKER OF PHARMACEUTICALS SYSTEMS FOR HOSPITALS DECLARED A 2FOR1 STOCK DIVIDEND PAYABLE ON OR ABOUT FEB 16 TO STOCK OF RECORD FEB 7 THE STOCK DIVIDEND WILL HAVE THE EFFECT OF DOUBLING THE STOCK OUTSTANDING 9401270033 940127 WIND SNOW AND ICE STALL VANGUARD PAYOUT CHECKS NEW YORK THE FRIGID COLD HAS GOTTEN THE BEST OF MANY VANGUARD GROUP DIVIDEND CHECKS MANY OF THE TENS OF THOUSANDS OF CHECKS MAILED ON JAN 3 HAVE NOT REACHED THEIR DESTINATION AND THE VALLEY FORGE PA MUTUAL FUND GROUP SAID POOR WEATHER CONDITIONS ARE TO BLAME ICY ROADS AND FREEZING TEMPERATURES CAUSED PROBLEMS IN VANGUARD'S MAILINGS TO SHAREHOLDERS SAID BRIAN MATTES VICE PRESIDENT COMMUNICATIONS FEDERAL EXPRESS DELIVERIES AND PICKUPS WERE SUSPENDED FOR TWO DAYS LAST WEEK WHILE ROADS WERE CLOSED DUE TO ICING CONDITIONS THE MAIL IS JUST CREEPING MR MATTES SAID BUT MANY ARE STARTING TO ARRIVE NEARLY ONE MILLION COPIES OF THE VANGUARD SHAREHOLDER NEWSLETTER WERE MAILED FROM JAN 14 THROUGH JAN 18 ONLY A FEW SHAREHOLDERS HAVE RECEIVED THEIR COPIES HE SAID OTHER BIG FUND GROUPS HAVE BEEN MORE FORTUNATE FIDELITY INVESTMENTS BOSTON THE NATION'S LARGEST MUTUAL FUND COMPANY HAS NOT EXPERIENCED ANY DELAYS IN MAILINGS TO SHAREHOLDERS SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY FIDELITY HAS A DISTRIBUTION CENTER FOR ITS MAILINGS IN DALLAS SO IT AVOIDED THE FRIGID NORTHEAST TEMPERATURES HE SAID 9401270032 940127 LABOR SQUEEZE WITH HOUSING STRONG BUILDERS OFTEN FIND SKILLED HELP LACKING CONTRACTORS COMPETE KEENLY FOR AVAILABLE TRADESMEN IN PLACES LIKE PHOENIX A PROBLEM FOR LOS ANGELES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX THESE SHOULD BE THE BEST OF TIMES FOR GILBERT PLUMBING CO WITH HOME BUILDING BOOMING HERE THE COMPANY EXPECTS TO INSTALL PLUMBING IN ABOUT 3000 HOMES THIS YEAR FAR MORE THAN THE 500 HOMES A YEAR IT DID IN 1988 AND 1989 THE TROUGH OF THE RECENT RECESSION HERE IN THE COMPANY'S BACK LOT ON A RECENT AFTERNOON DOZENS OF PLUMBERS SCRAMBLED TO LOAD TRUCKS WITH FAUCETS TOILETS AND PIPES FOR THE NEXT DAY'S WORK YET AS HE PACED THE BUSTLING YARD CA GILBERT THE COMPANY'S 64YEAROLD FOUNDER WORE THE STEELY GRIMACE OF A BESIEGED GENERAL WITH HIS 96 EMPLOYEES ALREADY WORKING SIXDAY DAWNTODUSK WEEKS TO KEEP UP WITH DEMAND MR GILBERT IS STRUGGLING TO RECRUIT 30 MORE PLUMBERS BY AMONG OTHER THINGS ADVERTISING IN NEWSPAPERS AS FAR AWAY AS NEW YORK MINNEAPOLIS AND BISMARCK ND HE ISN'T VERY HOPEFUL A BLITZ OF HELPWANTED ADS IN MAJOR CALIFORNIA NEWSPAPERS LAST FALL DREW ONLY 20 PHONE CALLS AND JUST ONE PLUMBER WAS HIRED MEANWHILE LOCAL COMPETITORS OFFERING AN EXTRA DOLLAR OR TWO AN HOUR RECRUIT GILBERT PLUMBERS AS THEY LEAVE THE COMPANY LOT AT NIGHT IT'S JUST A NIGHTMARE MR GILBERT LAMENTS WE CAN'T GET PEOPLE MANY CONTRACTORS AROUND THE COUNTRY HAVE THE SAME PROBLEM THERE IS A CRITICAL NEED FOR SKILLED WORKERS SAYS RICK HARRIS A SPOKESMAN FOR THE HOME BUILDERS INSTITUTE AN INDUSTRY RESEARCH GROUP IT'S A NATIONAL PROBLEM AS THE INDUSTRY REBOUNDS FROM A WITHERING DOWNTURN THE PROBLEM HAS SO FAR BEEN MOST ACUTE IN RESIDENTIAL CONSTRUCTION WHERE THE RECOVERY HAS OUTPACED THE COMMERCIAL AND INDUSTRIAL SECTORS WITH LOW INTEREST RATES AND MODERATING PRICES UNLEASHING PENTUP DEMAND FOR HOMES CONTRACTORS IN DOZENS OF MARKETS ARE HAVING TROUBLE FINDING SKILLED CARPENTERS PLUMBERS AND ELECTRICIANS THE SHORTAGE ALSO IS SPAWNING CONCERN ABOUT WORK QUALITY AS DESPERATE CONTRACTORS SETTLE FOR LESSRELIABLE HELP MEANWHILE PROJECTS ARE DELAYED AND COSTS INCREASED AS WORKERS DEMAND HIGHER WAGES IN KANSAS CITY MO A SHORTAGE OF SKILLED WORKERS HAS ADDED AS MUCH AS TWO MONTHS TO THE TIME REQUIRED TO BUILD A HOME OKLAHOMA CITY BRICKLAYERS ARE CHARGING AS MUCH AS 50 MORE THAN A YEAR AGO FOR THEIR SERVICES FRUSTRATED DENVER HOME BUILDERS ARE PREPARING TO HOLD A SERIES OF JOB FAIRS IN OTHER CITIES AND WITH THE PRIME SUMMER BUILDING SEASON APPROACHING THE MASSIVE EFFORT TO REBUILD LOS ANGELES IS LIKELY TO AGGRAVATE THE PROBLEM THE EARTHQUAKE IS GOING TO FURTHER PUT A SQUEEZE ON THE MANPOWER SITUATION NATIONWIDE SAYS PETER COCKSHAW PUBLISHER OF AN INDUSTRY NEWSLETTER AND I DON'T KNOW THAT THEY ARE GOING TO GET ALL OF THE SKILLED PEOPLE THAT ARE NEEDED CONSTRUCTION HAS ALWAYS GONE THROUGH BOOMANDBUST CYCLES THAT DROVE WORKERS FROM REGION TO REGION IN SEARCH OF JOBS AS THE DEMAND FOR SKILLED LABOR REVIVED IN AN AREA PAY RATES ROSE AND THE WORKERS RETURNED BUT THAT ISN'T HAPPENING NOW INSTEAD REGIONAL BUILDING BOOMS ARE EXPOSING LONGFESTERING INDUSTRY PROBLEMS BETWEEN 1983 AND 1992 THE NATION'S WORK FORCE INCREASED ABOUT 17 TO 1037 MILLION WORKERS BUT THE NUMBER OF CONSTRUCTION WORKERS ROSE ONLY ABOUT 10 TO 45 MILLION MOREOVER INDUSTRY EXECUTIVES SAY FEWER AND FEWER OF THOSE WORKERS ARE THE WELLTRAINED JOURNEYMEN OF A GENERATION AGO WE CAN ALWAYS FIND ENOUGH PEOPLE TO SLAM TOGETHER SOME FORMS AND DO THE GRUNT WORK SAYS DAN BENNET EXECUTIVE VICE PRESIDENT OF ASSOCIATED BUILDERS AND CONTRACTORS A TRADE GROUP BASED IN ROSSLYN VA IT'S THE SKILLS WHERE WE ARE GOING TO HAVE A PROBLEM AND ALREADY DO THOSE GROWING SHORTAGES ARE THE CULMINATION OF MORE THAN A DECADE OF TURMOIL WITHIN THE INDUSTRY IN SOME FAMILIES GENERATION ONCE FOLLOWED GENERATION INTO THE CONSTRUCTION TRADES SUCH JOBS USUALLY PAID BETTER AND WERE MORE CHALLENGING THAN MANUFACTURING WORK AND THEY OFFERED BROAD OPPORTUNITIES FOR PEOPLE TO START UP THEIR OWN BUSINESSES BUT DURING THE 1970S AND 1980S THOSE TRADITIONS BEGAN ERODING AS MAJOR CORPORATIONS AND OTHER CUSTOMERS IN A QUEST FOR LOWER BUILDING COSTS AWARDED MORE JOBS TO NONUNION CONTRACTORS AS UNIONS' MARKET SHARE DWINDLED CUTTHROAT COMPETITION AMONG SUCH FIRMS DROVE DOWN WAGES BY 1988 ACCORDING TO THE BUREAU OF LABOR STATISTICS MANUFACTURING WORKERS WERE EARNING MORE ABOUT 1626 AN HOUR IN TOTAL COMPENSATION COMPARED WITH 1623 FOR CONSTRUCTION WORKERS BY 1993 THE GAP HAD INCREASED WITH MANUFACTURING WORKERS PULLING DOWN 2009 AN HOUR TOTAL COMPENSATION COMPARED WITH 1971 IN CONSTRUCTION IN SOME REGIONS ESPECIALLY THE RIGHTTOWORK SOUTHWEST CONSTRUCTION WAGES FELL EVEN FURTHER FOR EXPERIENCED WORKERS INTO THE 12TO15ANHOUR RANGE WITH NO BENEFITS OLDER CRAFT WORKERS RETIRED AND MANY YOUNGER JOURNEYMEN LEFT THE INDUSTRY AND WE CAN'T RELY ON THE PEOPLE WE HAVE LOST COMING BACK SAYS JOHN HEFFNER TRAINING DIRECTOR FOR THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA WHICH REPRESENTS MANY LARGE COMMERCIAL AND INDUSTRIAL CONTRACTORS I THINK THEY HAVE JUST HAD IT WITH A LACK OF BENEFITS AND GUARANTEED HOURS THEY HAVE JUST HAD IT WITH BEING TREATED AS A COST RATHER THAN AN ASSET FOR A TIME NONUNION CONTRACTORS STILL COULD FIND ENOUGH SKILLED HELP FROM THE RANKS OF FORMER UNION MEMBERS BUT THEY WEREN'T REPLENISHING THE SUPPLY BY RECRUITING AND TRAINING YOUNG WORKERS BUT WHILE EXPERIENCED PEOPLE MIGHT STILL EARN 12 TO 15 AN HOUR POTENTIAL RECRUITS FROM THE BABYBUST GENERATION BEGAN FINDING THAT STARTING WAGES FOR NEW TRAINEES HAD SLID AS LOW AS 5 AN HOUR IN SOME TRADES AND THAT THEY COULD EARN NEARLY AS MUCH MANNING A FASTFOOD COUNTER OR STOCKING STORE SHELVES AND THE DIFFERENCE WASN'T ENOUGH TO MAKE UP FOR CONSTRUCTION'S DIRT DANGER AND FEW BENEFITS PLUS THE UNCERTAINTY OF AN UNEMPLOYMENT RATE THAT REGULARLY WAS DOUBLE THE NATIONAL AVERAGE BY LAST YEAR EVEN THE ASSOCIATED BUILDERS AND CONTRACTORS WHOSE MEMBERS ARE PRIMARILY NONUNION WAS SOUNDING THE ALARM IN ONE NEWSLETTER MR BENNET THE TRADEGROUP EXECUTIVE WROTE THAT MANY CONSTRUCTION WORKERS COULD NO LONGER AFFORD HOMES OR HEALTH INSURANCE HE ADDED THAT ACCORDING TO ONE SURVEY YOUNG PEOPLE CONSIDERED A CAREER IN CONSTRUCTION ONLY SLIGHTLY MORE APPEALING THAN MIGRANT FARM WORK WHEN YOU SQUASH DOWN YEAR AFTER YEAR ON WAGES YOU DON'T ATTRACT A GOOD PERSON INTO THE INDUSTRY HE OBSERVES STEPHEN GUBIN CHIEF EXECUTIVE OF PHOENIXBASED WILSON ELECTRIC CO WHICH HAS 400 EMPLOYEES COULDN'T EVEN PERSUADE HIS OWN SON TO LEARN THE TRADE THE LABOR SUPPLY ISN'T THERE BECAUSE THE KIDS HAVEN'T ACCEPTED THIS INDUSTRY AS A VIABLE PLACE TO GO FOR THEIR CAREERS HE SAYS THOSE WHO HAVE FIND TRAINING IN SHORT SUPPLY HUNDREDS OF VOCATIONAL SCHOOLS HAVE ABANDONED CONSTRUCTION PROGRAMS IN FAVOR OF HIGHTECH FIELDS ONE 1990 STUDY BY THE CONSTRUCTION LABOR RESEARCH COUNCIL ESTIMATED THAT THE INDUSTRY WAS TRAINING ONLY ABOUT TWOTHIRDS THE NUMBER OF WORKERS IT WOULD NEED IN THE 1990S UNION APPRENTICESHIP PROGRAMS LONG THE INDUSTRY'S PRIMARY TRAINING AND RECRUITING GROUND HAVE SHRIVELED AS THE UNIONS THEMSELVES HAVE LOST WORK THE EMPLOYERS DEMAND A SKILLED WORK FORCE AND THAT IS OUR PRODUCT SAYS RAY ROBERTSON WHO OVERSEES APPRENTICESHIP PROGRAMS FOR THE AFLCIO'S BUILDING TRADES COUNCIL BUT WHILE THE UNIONS' TRAINING APPARATUS REMAINS IN PLACE THE SYSTEM TOOK ON ONLY ABOUT 170000 NEW TRAINEES LAST YEAR DOWN FROM SOME 200000 ANNUALLY IN THE EARLY 1980S SAYS BILL MUNS DIRECTOR OF TRAINING FOR IRONWORKERS LOCAL 75 IN PHOENIX IT DOES NO GOOD TO TRAIN PEOPLE IF YOU DON'T HAVE THE JOBS MOREOVER MOST CONTRACTORS PROVIDE ONLY MINIMAL ONTHEJOB TRAINING TO SPEED UP PRODUCTION MANY HAVE BROKEN DOWN THE CRAFTS INTO DOZENS OF REPETITIVE TASKS AND TEACH A WORKER ONLY TO INSTALL TOILETS HANG DOORS OR BUILD CHIMNEYS IN MANY CASES YOU ARE NO LONGER A CARPENTER YOU ARE A CUTTER' YOU CUT BOARDS ALL DAY SAYS DAVID WILKINSON EXECUTIVE DIRECTOR OF THE PHOENIX ABC OFFICE WHO HAS BEEN STRUGGLING TO PERSUADE LOCAL NONUNION CONTRACTORS TO FUND A BETTER TRAINING PROGRAM MOST HAVE BALKED FEARING THAT COMPETITORS WON'T CONTRIBUTE AND THUS WILL GAIN A COST ADVANTAGE IN BIDDING IF YOU THROW TWO CONTRACTORS OFF A BRIDGE THEY WILL SCRATCH KICK AND GOUGE EACH OTHER ALL THE WAY TO IMPACT EVEN THOUGH THEY KNOW THEY ARE GOING TO DIE AT THE BOTTOM HE SAYS THE PHOENIX MARKET STRIKINGLY ILLUSTRATES THE FRUITS OF SUCH RUTHLESS COMPETITION STREWN ACROSS A VAST DESERT VALLEY ARIZONA'S LARGEST CITY IS VIRTUALLY EXPLODING WITH CONSTRUCTION ACTIVITY AROUND ITS EDGES HOME BUILDERS' BILLBOARDS LINE THE HIGHWAYS AND ACRE AFTER ACRE OF FORMER COTTON FIELDS AND DESERT HAS COME ALIVE WITH BULLDOZERS GRADING LOTS AND CONSTRUCTION CREWS WRESTLING UP THE FRAMES OF NEW HOMES A NEARRECORD 22652 NEWHOME CONSTRUCTION PERMITS WERE ISSUED IN THE PHOENIX MARKET LAST YEAR UP 23 FROM 1992 AND NEARLY DOUBLE THE 1990 TOTAL AND HAD IT NOT BEEN FOR A SHORTAGE OF CONSTRUCTION LABOR WE WOULD HAVE EXCEEDED THAT SAYS RL BROWN A LOCAL INDUSTRY ANALYST THAT SHORTAGE IS PUSHING THE BUILDING TIME FOR THE AVERAGE PHOENIX HOME TOWARD 180 DAYS FROM THE TRADITIONAL 75 TO 90 DAYS AMID FLUCTUATING LUMBER PRICES AND INTEREST RATES SUCH DELAYS HAVE MADE IT DIFFICULT FOR BUILDERS TO ESTIMATE PRICES AND FOR HOME BUYERS TO LOCK IN LOANS SCHUCK & SONS CONSTRUCTION CO WHICH SPECIALIZES IN PUTTING UP HOUSE FRAMES FOR OTHER CONTRACTORS HAS BEEN TRYING TO ADD ABOUT 150 FRAMING CARPENTERS TO THE 535 IT ALREADY EMPLOYS THE COMPANY KEEPS RUNNING NEWSPAPER ADS AS FAR AWAY AS SEATTLE SALT LAKE CITY AND DENVER BUT SO FAR THE RESPONSE HAS BEEN SPARSE LAST SUMMER A SERIES OF ADS IN THE LOS ANGELES AREA DREW 300 CALLS BUT ONLY 12 PEOPLE SHOWED UP TO WORK IN SCHUCK'S PHOENIX OPERATIONS AND AFTER A WEEK OF RAIDS BY LABORHUNGRY COMPETITORS ONLY TWO WERE STILL ON THE JOB THEIR CHOICE NOT OURS GRUMBLES CRAIG STEELE SCHUCK'S EXECUTIVE VICE PRESIDENT WHO IS STILL ADVERTISING IN THE LOCAL PAPER THOUGH ADMITTING THAT IT'S JUST TO LET THE BUILDERS KNOW THAT WE ARE STILL TRYING GROWING DESPERATE CONTRACTORS ARE ADVERTISING FULL HEALTH BENEFITS PAID VACATIONS AND PROFITSHARING PLANS A FEW HAVE OFFERED EMPLOYEES 50 FOR EVERY NEW HIRE THEY BRING IN FOR A TIME LAST YEAR DEL WEBB CORP A MAJOR HOME BUILDER HERE RAN ADS ON A LOCAL ROCK STATION OFFERING TO TOP ANY FRAMING CARPENTER'S LAST PAY STUB BY 2 AN HOUR MEANWHILE RECRUITERS TURN UP ON CONSTRUCTION SITES HIRING AWAY TRADESMEN GUYS ARE JUMPING SHIP LEFT AND RIGHT FOR 50 CENTS AN HOUR THE LOCAL ABC'S MR WILKINSON SAYS YOU DON'T KNOW WHO'S GOING TO SHOW UP ON THE JOB FROM ONE DAY TO THE NEXT OR HOW GOOD THEY WILL BE WHILE THERE HAVE BEEN NO SCANDALS OR MAJOR ACCIDENTS COMPLAINTS ABOUT BUILDING QUALITY AND TIMELINESS TO THE ARIZONA REGISTRAR OF CONTRACTORS A STATE CONSUMER AGENCY HAVE RISEN BY 3 TO 4 IN EACH OF THE PAST FIVE YEARS AREA CONTRACTORS ADMIT THAT THEY HAVE TO REDO A LOT OF THEIR CREWS' WORK AND THAT CONCERN ABOUT THEIR WORKERS' SKILLS HAS SPURRED THEM TO HIRE MORE SUPERINTENDENTS AND INTERNAL INSPECTORS THEY ARE JUST NOT UP TO THE CALIBER THAT THEY USED TO BE SAYS KIM BANNISTER A DEL WEBB EXECUTIVE ASKED TO MOVE A GAS LINE THAT HE HAD MISINSTALLED ONE RECENT HIRE AT GILBERT PLUMBING SIMPLY REVVED UP HIS CHAIN SAW AND CUT A BROAD GASH INTO THE DRYWALL AND STUDS OF A NEWLY BUILT HOME YOU HIRE THEM AND TAKE YOUR CHANCES SAYS MR GILBERT A BLUNTSPOKEN MAN WHO IS STRUGGLING TO RECONCILE THE CURRENT TURMOIL WITH A WORK ETHIC FORGED LONG AGO ON HIS PARENTS' NORTH DAKOTA WHEAT FARM SINCE ARRIVING IN PHOENIX IN 1969 WITH ENOUGH MONEY TO BUY TWO SECONDHAND TRUCKS HE HAS BUILT A BOOMING PLUMBING BUSINESS WITH 66 TRUCKS A COMPUTERIZED BUSINESS OFFICE AND REVENUE OF ABOUT 9 MILLION LAST YEAR ALL THREE OF HIS ADULT CHILDREN HAVE JOINED HIM AT GILBERT PLUMBING A DAUGHTER DOES THE BILLING ONE SON IS A SUPERINTENDENT AND ANOTHER OVERSEES THE BUSINESS OPERATION MR GILBERT STILL KNOWS THE VINTAGE AND MILEAGE OF ALL HIS TRUCKS WHICH ARE WASHED WEEKLY HIS BACK LOT IS A SPRAWLING BUT IMMACULATE COLLECTION OF BINS FILLED WITH PLUMBING FIXTURES ALTHOUGH MR GILBERT'S PAY OF 10 TO 14 AN HOUR FOR EXPERIENCED PLUMBERS ISN'T THE MOST GENEROUS IN THE MARKET HE PROUDLY NOTES THAT HE KEPT HIS CORE GROUP OF SOME 30 PLUMBERS EMPLOYED DURING THE RECESSION NEVERTHELESS SOME OF HIS MOST LOYAL EMPLOYEES SAY THE BUSINESS HAS CHANGED JOURNEYMEN PLUMBERS SUCH AS KAREN SCHWEIGART WHOSE HUSBAND IS A COMPANY SUPERINTENDENT SAY THE QUALITY OF THE WORK FORCE HAS DROPPED HEALTH BENEFITS AND PAID VACATIONS ARE STILL HARD TO COME BY AND WAGES HAVEN'T KEPT PACE WITH INFLATION THERE'S NOTHING AT THE END OF THE RAINBOW IN CONSTRUCTION ANYMORE SHE SAYS ADDING THAT SHE HAS DISCOURAGED HER CHILDREN FROM ENTERING THE BUSINESS MEANWHILE THE RELATIVELY LOW PAY AND A LACK OF BENEFITS HAVE DRIVEN AWAY PLUMBERS SUCH AS LOUIS LEYBA WHO QUIT GILBERT PLUMBING FIVE MONTHS AGO I WORKED FOR A FEW SHOPS AND THEY ARE ALL THE SAME GRUMBLES THE 48YEAROLD MR LEYBA WHO SAYS HIS CURRENT JOB AS A GROUNDSKEEPER FOR A SUBURBAN GOVERNMENT OFFERS BETTER BENEFITS THAN ANY HE EVER GOT IN PLUMBING ANOTHER FORMER GILBERT PLUMBER RALPH NAYLOR SAYS NO AMOUNT OF MONEY COULD PERSUADE HIM TO PICK UP HIS WRENCHES AGAIN I HAD TO BORROW MONEY TO MAKE HOUSE PAYMENTS SAYS MR NAYLOR WHO BECAME A BUILDING APPRAISER CONSTRUCTION COMPANIES ARE SAYING THAT THEY WANT SKILLED LABOR BUT THEY DON'T WANT TO PAY FOR IT ODDLY ENOUGH MR GILBERT ACKNOWLEDGES THAT NAVIGATING THROUGH THE DOWNTURN WASN'T NEARLY AS HARD AS DEALING WITH A MARKET WHERE SOME GENERAL CONTRACTORS DESPERATE FOR HIS SERVICES HAVE TOLD HIM TO NAME HIS PRICE TRIPLING HIS WORK FORCE TO HANDLE THE LOAD HAS BEEN A NIGHTMARE MANY PLUMBERS HIRED IN THE AFTERNOON CONTINUE TO SHOP FOR BETTERPAYING JOBS AND NEVER PUNCH IN THE FOLLOWING MORNING ON ANY GIVEN DAY A DOZEN OR SO OF HIS WORKERS DON'T SHOW UP AND MOST DON'T CALL IN EIGHT QUIT FOR OTHER JOBS ONE RECENT WEEK ONE ASKED FOR AND GOT A 450 ADVANCE THE DAY BEFORE HE DISAPPEARED WE'VE HAD SOME EMPLOYEES WHOSE FATHERS HAVE DIED THREE TIMES GRUMBLES MR GILBERT WHO HESITATES TO CRITICIZE PUNISH OR FIRE WORKERS KNOWING THEY CAN GET ANOTHER JOB IN HALF AN HOUR YOU GOT TO BE CAREFUL HOW YOU TALK TO THEM DESPERATE FOR HELP MR GILBERT ALLOWS HIS SECRETARIES TO MAKE HIRING DECISIONS IF COMPANY EXECUTIVES AREN'T AVAILABLE TO INTERVIEW WALKINS HE EVEN HAS TAKEN ON PLUMBERS WHO HAVING LOST THEIR DRIVERS' LICENSES BECAUSE OF SPEEDING OR DRUNKENDRIVING CONVICTIONS NEED A DRIVER TO FERRY THEM FROM JOB TO JOB RECRUITING IS NEVER FAR FROM MR GILBERT'S MIND AS HE AND ONE OF HIS SONS WERE DRIVING BACK TO THE OFFICE ONE RECENT AFTERNOON MR GILBERT SUDDENLY PERKED UP STEVE THERE ARE TWO PLUMBERS' TRUCKS UP AHEAD OF YOU HE SAID SPEED UP AND SEE IF YOU CAN CATCH'EM 9401270031 940127 MUNICIPALSECURITIES BOARD PROPOSES RULES ON GIFTS WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD PROPOSED SPECIFIC RECORDKEEPING REQUIREMENTS FOR GIFTS AND GRATUITIES MADE BY MUNICIPALBOND DEALERS IN THEIR BUSINESS DEALINGS THE PROPOSAL BY THE MSRB WHICH RECENTLY FILED A RULE TO END PAYTOPLAY POLITICAL CONTRIBUTIONS BY DEALERS TO STATE AND LOCAL GOVERNMENT OFFICIALS WOULD MODIFY AN EXISTING ANTIBRIBERY RULE THE PROPOSED RULES WOULD REQUIRE DEALERS TO KEEP SPECIFIC RECORDS ON GIFTS AND GRATUITIES GIVEN IN RELATION TO MUNICIPALSECURITIES ACTIVITIES DEALERS WOULD HAVE TO KEEP RECORDS FOR SIX YEARS THE BOARD'S CURRENT GIFTSANDGRATUITIES RULE BARS A DEALER FROM GIVING DIRECTLY OR INDIRECTLY ANYTHING OF VALUE IN EXCESS OF 100 A YEAR TO ANY PERSON OTHER THAN AN EMPLOYEE OR PARTNER IN CONNECTION WITH ITS MUNICIPALBOND ACTIVITIES THE RULE DOESN'T COVER CHARITABLE GIVING AND HAS NO RECORDKEEPING REQUIREMENT THE CURRENT RULE EXEMPTS NORMAL BUSINESS DEALINGS FROM THE 100 ANNUAL LIMIT THESE INCLUDE SUCH THINGS AS OCCASIONAL GIFTS OF MEALS OR TICKETS TO THEATRICAL OR SPORTING EVENTS AS WELL AS THE SPONSORING OF BUSINESS FUNCTIONS THAT ARE RECOGNIZED AS DEDUCTIBLE BUSINESS EXPENSES THE BOARD YESTERDAY SAID IT IS CONSIDERING WHETHER TO WRITE A NEW DEFINITION OF NORMAL BUSINESS DEALINGS AND REQUESTED COMMENTS ON THE MATTER MSRB CHAIRMAN DAVID CLAPP OF GOLDMAN SACHS & CO SAID THE PROPOSED RECORDKEEPING REQUIREMENT WOULD APPLY TO ALL GIFTS AND GRATUITIES INCLUDING THOSE ALLOWED UNDER EXCEPTIONS TO THE UNDERLYING RULE 9401270030 940127 LEISURE & ARTS FILM MORAL DILEMMAS FOR DILLON AND GERE BY JULIE SALAMON I KEPT THINKING DURING GOLDEN GATE THAT IT WOULD BE NICE IF THE CHARACTERS WOULD START SINGING THIS ISN'T MEANT TO INSULT THE MOVIE WHICH I LIKED BUT THERE WAS SOMETHING MISSING FROM THIS HISTORICAL DRAMA ABOUT SOCIAL INJUSTICE AND THWARTED LOVE I'M PRETTY SURE SOME GOOD TUNES AND SNAPPY LYRICS WOULD HAVE FILLED THE GAP THE STORY IS ABOUT AN OVEREAGER FBI ROOKIE WHO HYPES THE EVIDENCE AGAINST A CHINESEAMERICAN LAUNDRY WORKER AND LABOR ORGANIZER ACCUSED OF BEING A COMMUNIST SYMPATHIZER IT'S 1952 THE HEIGHT OF THE RED SCARE THE LAUNDRY WORKER IS CONVICTED WRONGLY AND SPENDS 10 YEARS IN JAIL WHEN HE IS RELEASED THE FBI MAN IS REASSIGNED TO THE CASE WHICH HE KNOWS NEVER HAD MERIT AND WHICH HE NO LONGER WANTS TO PURSUE THE LAUNDRY WORKER ALREADY WEAKENED BY HIS YEARS IN PRISON GOES MAD AND KILLS HIMSELF THE FBI MAN TRIES TO ATONE FOR HIS PART IN THIS MISCARRIAGE OF JUSTICE BY OFFERING TO TAKE CARE OF THIS MAN'S DAUGHTER A COLLEGE STUDENT THEY FALL IN LOVE BUT WHEN SHE DISCOVERS HIS CONNECTION TO HER FATHER'S DEATH SHE BANISHES HIM FROM HER LIFE EVENTUALLY HOWEVER HE DOES FIND A WAY TO REDEEM HIMSELF PERHAPS I SEE THE BROADWAY MUSICAL POSSIBILITIES IN THIS DISTURBING MATERIAL BECAUSE OF THE FILM'S BOUNCY THEATRICALITY PLAYWRIGHT DAVID HENRY HWANG M BUTTERFLY HAS WRITTEN THE STORY AS A FABLE THERE WAS ONCE A MAN WHO TRANSFORMED HIMSELF INTO AN ANGEL THE MOVIE BEGINS THE DIRECTOR JOHN MADDEN STAGED THE STORY AS A STRANGE COMBINATION OF 1950S MUSICALS AND 1950S FILMS NOIRS A MIX OF CORNY BREEZINESS AND DARK SURREALISM FOR EXAMPLE THE ESSENTIAL MORAL DILEMMA OF THE FBI MAN IS ESTABLISHED WHILE HE IS KISSING THE PRETTY BLOND WOMAN HE HAS JUST PICKED UP AT A DANCE HALL SHE INTERRUPTS HIM WITH A SERIES OF QUESTIONS DOES HE UNDERSTAND THE DIFFERENCE BETWEEN LAW AND JUSTICE IF HE HAD TO CHOOSE ONE OVER THE OTHER WHICH WOULD HE CHOOSE IT'S A CUTE SCENE PLAYED FOR COMEDY THE PERFECT INTRODUCTION TO A FUNNY SONG ELSEWHERE HOWEVER THERE ARE STRONG EMOTIONAL MOMENTS PLAYED OUT IN DARK ALLEYS IN THE RAIN THE SIMPLICITY OF THIS APPROACH GIVES THE MOVIE A STRONG EMOTIONAL PUSH EVEN WHEN IT MIGHT COME OFF AS A LITTLE TOO GIMMICKY SOME OF THE PARTS RELY TOO HEAVILY ON CARICATURE LIKE BRUNO KIRBY AS THE FASTTALKING SIDEKICK BUT MOST OF THE ACTORS PLAY THESE MELODRAMATIC CHARACTERS WITH A LOT OF SINCERITY THEY PULL YOU IN MATT DILLON AS THE FBI MAN SHOWS AGAIN THAT HE IS ONE OF THE MORE INTERESTING YOUNG ACTORS WORKING TODAY THERE'S THIS INTRIGUING BATTLE GOING ON BETWEEN HIS GOOD LOOKS AND SOME INNER COMPLEXITY AND BOTH THE PICTURE'S WOMEN ARE VERY GOOD TERI POLO AS THE RIGHTEOUS BLONDE AND JOAN CHEN AS THE WRONGED CHINESEAMERICAN GIRL WE MAY THINK IT'S OK FOR A FRENCHMAN TO SPEND HIS DYING MOMENTS TELLING US ABOUT HOW HE'S TRYING TO DECIDE BETWEEN HIS NICE WIFE AND HIS NICE MISTRESS THAT WAS THE PREMISE OF THE THINGS OF LIFE A BOOK BY FREDERIC GOLCHAN AND OF THE 1970 MOVIE THAT WAS INSPIRED BY IT NOW I SEE THAT THIS WAS A PERFECT EXAMPLE OF WHAT THE FRENCH WERE CALLING THE CULTURAL EXCEPTION DURING THE RECENT NEGOTIATIONS FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE A FRENCHMAN CAN GET AWAY GRACEFULLY WITH BEING WITH TWO WOMEN AT THE SAME TIME THERE'S EVEN AN EXPRESSION FOR IT LUCKY PIERRE BUT WHEN AN AMERICAN MAN SPENDS HIS LAST MOMENTS CAUGHT BETWEEN TWO WOMEN HE SEEMS LIKE A FLAKE AND A CREEP OR AT LEAST THAT'S HOW RICHARD GERE SEEMED TO ME IN INTERSECTION THE NEW AMERICAN VERSION OF THE THINGS OF LIFE WHICH EVEN IN ITS MORECREDIBLE FRENCH FORM WAS ONLY A SOSO MOVIE AS I REMEMBER IT THE MAN IN THINGS OF LIFE HAD BEEN UNABLE TO MAKE HIS CHOICE BECAUSE HE WAS EQUALLY COMPELLED BY THE PULL OF HISTORY THE WIFE AND THE PULL OF PASSION THE MISTRESS THE ACTORS WHO INCLUDED ROMY SCHNEIDER AS THE MISTRESS AND THE ATMOSPHERE AND POSSIBLY THE FRENCHNESS OF IT ALL MADE HIS DILEMMA VITAL WHAT WAS THE BEST WAY FOR HIM TO SPEND THE REST OF HIS LIFE WITH THE FAMILY WHO HAD HELPED BUILD WHAT HE HAD OR WITH THE WOMAN WHO MADE HIM SEE THE POSSIBILITIES IN SOMETHING NEW NONE OF THESE THOUGHTS OCCURRED TO ME DURING INTERSECTION INSTEAD I FOUND MYSELF WONDERING ABOUT WHY THE FILMMAKERS DECIDED TO REMAKE THIS FILM IN THE PLACID BEAUTY OF VANCOUVER NOT EXACTLY A CAULDRON OF BURNING PASSION THE MISCASTING ISN'T ONLY GEOGRAPHIC HOWEVER DEPTH OF FEELING ISN'T MR GERE'S SPECIALTY CERTAINLY AND LOLITA DAVIDOVICH AS THE MISTRESS HAS BEEN GIVEN NOTHING TO DO THAT CONVEYS HER CHARACTER'S MAGNETIC PULL WHICH BRINGS ME TO SHARON STONE AS THE WIFE A BEAUTIFUL AND TALENTED ARCHITECT WE CAN AT LEAST SEE WHERE HER ATTRACTION LIES NO NOT THE OBVIOUS NOT THE LITHE BODY AND BEAUTIFUL FACE HERE SHARON STONE REPRESENTS HISTORY THE TIES OF WORK AND FAMILY AND HEARTH IT HAS BEEN SAID THAT MS STONE WITH THE RIGHT SCRIPT MIGHT JUST BE THIS GENERATION'S GRACE KELLY THERE IS SOME PHYSICAL RESEMBLANCE HOWEVER IT'S MORE LIKELY THAT MS STONE WILL BE REMEMBERED AS THIS GENERATION'S TIPPI HEDREN MELANIE GRIFFITH'S MOTHER THE BLANK ACTRESS ALFRED HITCHCOCK TURNED TO AFTER GRACE KELLY LEFT SHOW BUSINESS TO BECOME PRINCESS GRACE OF MONACO VIDEO TIP TO UNDERSTAND THE DIFFERENCE JUST LOOK AT GRACE KELLY IN REAR WINDOW DIAL M FOR MURDER AND TO CATCH A THIEF THEN WATCH TIPPI HEDREN IN THE BIRDS AND MARNIE