NEW YORK SOTHEBY'S HOLDINGS INC THE NEW YORK ART AUCTION HOUSE SLASHED ITS QUARTERLY DIVIDEND BY 60 TO SIX CENTS A SHARE FROM 15 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOTHEBY'S SHARES ROSE 125 CENTS TO 11625 ON THE NEWS WHICH HAD BEEN EXPECTED FOR SOME TIME SOTHEBY'S PRESIDENT MICHAEL AINSLIE SAID THE DIVIDEND CUT DIDN'T REFLECT REDUCED OPTIMISM AND THAT THE COMPANY WAS PLEASED WITH ITS FINANCIAL PERFORMANCE SO FAR THIS YEAR EARLIER THIS WEEK THE COMPANY SAID THIRDQUARTER NET INCOME ROSE 48 TO 166 MILLION OR 30 CENTS A SHARE FOR 1992 SOTHEBY'S PAID A DIVIDEND OF 60 CENTS A SHARE BUT EARNED SEVEN CENTS A SHARE IN AN INTERVIEW IN JUNE MR AINSLIE SAID THE COMPANY WOULDN'T CONTINUE TO PAY A DIVIDEND IN EXCESS OF EARNINGS SOTHEBY'S HAD 552 MILLION SHARES OUTSTANDING AS OF APRIL 30 9308200074 930820 BUSINESS BRIEF MARTIN COLORFI INC COMPANY AGREES TO PURCHASE TWO CLOSELY HELD CONCERNS MARTIN COLORFI INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CUSTOM COLORANTS INC AND CUSTOM POLYMER INC TERMS WEREN'T DISCLOSED CUSTOM COLORANTS OF DALTON GA AND CUSTOM POLYMER PENSACOLA FLA HAD COMBINED ANNUAL REVENUE OF ABOUT 5 MILLION IN 1992 ABOUT 20 OF THEIR SALES WERE TO MARTIN COLORFI THE COMPANY SAID THE TWO CLOSELY HELD COMPANIES PRODUCE PIGMENTS AND ADDITIVES SUCH AS FLAME RETARDANTS USED IN POLYESTER NYLON AND OTHER MATERIALS MARTIN COLORFI EDGEFIELD SC MAKES POLYESTER FIBER AND PELLETS FROM RECYCLED PLASTIC MATERIALS 9308200073 930820 BUSINESS BRIEF MARION MERRELL DOW INC SMITHKLINE PARTNERSHIP GETS NICORETTE MARKETING RIGHTS MARION MERRELL DOW INC SAID IT WILL TRANSFER THE MARKETING RIGHTS TO ITS NICORETTE SMOKINGCESSATION AID TO A PARTNERSHIP IT OPERATES WITH SMITHKLINE BEECHAM PLC THE KANSAS CITY MO DRUG MANUFACTURER AND THE BRITISH CONCERN LAST YEAR ESTABLISHED SMITHKLINE BEECHAM CONSUMER BRANDS A VENTURE THAT COMBINED THE COMPANIES' US OVERTHECOUNTER PHARMACEUTICAL LINES THE PARTNERSHIP CURRENTLY SELLS SUCH ITEMS AS SMITHKLINE'S TUMS AND CONTAC PRODUCTS ALONG WITH MARION MERRELL'S GAVISCON AND CEPACOL IT HAS RIGHTS TO ALL FUTURE OVERTHECOUNTER PRODUCTS EITHER COMPANY MAY PRODUCE MARION MERRELL'S NICORETTE NICOTINE GUM INTRODUCED IN 1984 IS SOLD BY PRESCRIPTION ONLY THE COMPANY NOTED THAT THE FOOD AND DRUG ADMINISTRATION IS STUDYING THE GUM'S POSSIBLE SUITABILITY FOR OVERTHECOUNTER STATUS MARKETING OF THE GUM WILL BE TRANSFERRED TO THE PARTNERSHIP EFFECTIVE AT YEAR'S END REGARDLESS OF ITS STATUS 9308200072 930820 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN WORK IS NEARLY COMPLETE ON MEXICO'S 650 MILLION EL CUCHILLO DAM PROJECT WHICH WOULD MAKE MONTERREY THE FIRST MAJOR CITY IN THE COUNTRY TO HAVE POTABLE WATER THE DAM'S RESERVOIR WHICH WILL COVER 7285 ACRES WHEN IT REACHES CAPACITY NEXT APRIL PROMISES TO CURTAIL MONTERREY'S CHRONIC WATER SUPPLY PROBLEMS AND COULD ALSO SEND A SIGNAL THAT MEXICO IS SHEDDING ITS POORCOUSIN IMAGE IN NORTH AMERICA TREATMENT PLANTS HAVE BEEN BUILT IN THE MONTERREY AREA TO PURIFY THE WATER WHEN IT REACHES THE CITY EFFORTS ALSO ARE BEING MADE TO STOP UPSTREAM CONTAMINATION OF THE SAN JUAN RIVER WHICH FEEDS THE RESERVOIR SOME 32000 TONS OF SEWAGE AND WASTE IS DUMPED INTO THE RIVER EACH YEAR WIDESPREAD POTABLE WATER SUPPLIES ARE STILL YEARS AWAY MOST MEXICANS MUST BOIL THEIR DRINKING WATER OR BUY BOTTLED WATER TO AVOID INTESTINAL DISORDERS SPAIN HAS URGED CUBA TO BEGIN SELLING OFF PROFITABLE STATE COMPANIES AND TO AUTHORIZE NEW PRIVATE ENTERPRISES IN A REPORT TO CUBAN LEADER FIDEL CASTRO IN JULY FORMER SPANISH FINANCE MINISTER CARLOS SOLCHAGA ALSO PROPOSED THAT CUBA RESTRUCTURE POTENTIALLY PROFITABLE STATE COMPANIES AND CUT OFF SUBSIDIES WITH THE GOAL OF CLOSING INEFFICIENT INDUSTRIES SPAIN'S PRIME MINISTER HAD OFFERED LAST MONTH TO SEND A TEAM TO HELP CUBA SOLVE ITS ECONOMIC CRISIS SINCE THEN CUBA HAS OVERHAULED ITS ECONOMIC TEAM AND ALLOWED CUBANS TO OWN AND USE FOREIGN CURRENCY AUSTRALIA'S 199394 BUDGET RELEASED TUESDAY HAS DIMINISHED OPTIMISM ABOUT THE ECONOMY AMONG SMALL AND MIDSIZE BUSINESSES IN A SURVEY OF 374 COMPANIES 76 RATED THE BUDGET POOR OR VERY POOR MAINLY BECAUSE OF THE BUDGET'S INCREASED SALES AND GASOLINE TAXES ONLY 3 RATED THE BUDGET GOOD MORE THAN HALF THE RESPONDENTS EXPECT THE BUDGET TO HAVE A NEGATIVE EFFECT ON ECONOMIC GROWTH FOUR MONTHS AGO BUSINESSES WERE LARGELY OPTIMISTIC A SURVEY SOON AFTER THE MARCH ELECTIONS FOUND MORE RESPONDENTS BELIEVING THE ECONOMY WAS EXPANDING THAN CONTRACTING IN THE LATEST SURVEY NEARLY 60 SAID THE BUDGET WILL HURT THEIR BUSINESS SOUTH KOREA DEMANDED COMPENSATION FROM RUSSIA FOR SHOOTING DOWN A KOREAN JETLINER THAT STRAYED INTO SOVIET AIRSPACE 10 YEARS AGO IT WAS THE FIRST TIME SEOUL OFFICIALLY ASKED FOR PAYMENT FOR THE SOVIET MISSILE STRIKE ON THE KOREAN AIR LINES JET IN WHICH 269 PEOPLE WERE KILLED THE AMOUNT SOUGHT WASN'T DISCLOSED THE SOVIETS CLAIMED THEY MISTOOK THE PLANE FOR A US SPY AIRCRAFT IN JUNE A UNITED NATIONS PANEL RULED THAT ALTHOUGH THE PILOT OF THE KOREAN PLANE MADE NAVIGATION ERRORS THE SOVIETS ACTED HASTILY IN FIRING TURKMENISTAN WILL INTRODUCE ITS OWN CURRENCY THE MANAT TO REPLACE THE RUBLE ON NOV 1 AND EXCHANGE ALL BANK SAVINGS AT A RATE OF ONE MANAT FOR 1000 RUBLES THE EXCHANGE OF PAPER MONEY WILL BE LIMITED TO 30000 RUBLES THE FORMER SOVIET REPUBLIC URGED PEOPLE TO PUT THEIR MONEY IN BANK ACCOUNTS BY SEPT 1 AND PROMISED NOT TO CHECK THE SOURCE OF THOSE DEPOSITS TURKMENISTAN HAD PLANNED TO INTRODUCE THE MANAT ON OCT 27 BUT BACKED OUT IN MAY BECAUSE IT COULDN'T ENSURE THAT THE CURRENCY WOULD BE CONVERTIBLE THE DECISION TO SPEED UP THE NEW CURRENCY WAS PROMPTED BY RUSSIA'S WITHDRAWAL OF ALL PRE1993 RUBLES LAST MONTH THAILAND RECEIVED 2502 MILLION IN LOANS FROM THE ASIAN DEVELOPMENT BANK TO FUND TWO ELECTRICITY PROJECTS THE FIRST LOAN WORTH 1346 MILLION WILL BE USED BY THE METROPOLITAN ELECTRICITY AUTHORITY TO EXPAND ITS DISTRIBUTION CAPACITY AND SERVE MORE THAN 200000 NEW CUSTOMERS IN BANGKOK THE OTHER LOAN FOR 1156 MILLION WILL BE USED TO MEET INDUSTRIAL POWER DEMAND PARTICULARLY AROUND BANGKOK BOTH LOANS ARE REPAYABLE OVER 20 YEARS PAKISTAN'S CARETAKER PRIME MINISTER MOEEN QURESHI ANNOUNCED SWEEPING REFORMS INCLUDING TAXES ON WEALTHY LANDLORDS TO RESUSCITATE AN ECONOMY THAT HAS BEEN CRIPPLED BY CORRUPTION MISMANAGEMENT AND MANEUVERING BY THE WEALTHY NO PREVIOUS GOVERNMENT HAS RISKED TAXING PAKISTAN'S POWERFUL FEUDAL LANDLORDS WHO MAKE UP MOST OF THE 217SEAT LAWMAKING LOWER HOUSE OF PARLIAMENT MANY WEALTHY PEOPLE HAVE EVADED TAXES BY REPORTING THEIR INDUSTRIAL AND MANUFACTURING GAINS AS AGRICULTURE INCOME WHICH UNTIL YESTERDAY WASN'T TAXABLE MR QURESHI WHO STEPPED INTO THE JOB AFTER THE RESIGNATIONS OF PRIME MINISTER NAWAZ SHARIF AND PRESIDENT GHULAM ISHAQ KHAN ALSO PLEDGED TO PRESS AHEAD WITH PAKISTAN'S PRIVATIZATION PROGRAM CONCENTRATING ON SELLING OFF UTILITIES AIRLINES AND PORT FACILITIES ALSO IMPORT TARIFFS WILL BE REDUCED AS MUCH AS 50 WHEAT AND OILSEED PRICES WILL BE INCREASED TO ENCOURAGE PRODUCTION AND REDUCE IMPORTS THE MINIMUM WAGE WILL BE INCREASED SLIGHTLY AND SOME GOVERNMENT EMPLOYEES WILL GET RAISES THIEVES IN ZESTAFONI GEORGIA LIFTED A 10TON BRONZE STATUE OF VLADIMIR LENIN FROM ITS PEDESTAL AND HAULED IT AWAY BY TRUCK ON THE SECOND ANNIVERSARY OF THE SOVIET COUP MOROCCO'S KING HASSAN II PARDONED 1065 PRISONERS ON THE EVE OF A NATIONAL HOLIDAY THE 40TH ANNIVERSARY OF THE EXILE OF HIS FATHER MOHAMMED V BY FRANCE WHICH RULED MOROCCO THEN 9308200071 930820 MASSACHUSETTS ISSUES GUIDELINES TO EASE ANTITRUST HURDLE FOR HOSPITAL MERGERS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON MASSACHUSETTS ISSUED ANTITRUST GUIDELINES FOR HOSPITAL MERGERS IN RESPONSE TO INDUSTRY DEMANDS FOR REGULATORY STEPS THAT WOULD MAKE COSTSAVING COMBINATIONS EASIER HOSPITAL OFFICIALS SAID THE MOVE WHICH COINCIDES WITH PLANS BY THE CLINTON ADMINISTRATION TO ISSUE SIMILAR FEDERAL GUIDELINES WOULD REDUCE APPREHENSIONS ABOUT PROPOSALS FOR COMBINATIONS EVEN THOUGH THE GUIDELINES DIDN'T OFFER MUCH IN TERMS OF EXPLICIT ANTITRUST EXEMPTIONS FOR HOSPITALS THE STATE GUIDELINES SAID THE ATTORNEY GENERAL SUPPORTS INTEGRATION IN THE INDUSTRY AND RECOGNIZES THAT CONSOLIDATION OF UNNEEDED OR UNDERUTILIZED HOSPITAL FACILITIES IS IN THE INTEREST OF CONSUMERS MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER WHO IS CHAIRMAN OF A NATIONAL ATTORNEYS GENERAL TASK FORCE ON HEALTH CARE SAID HIS STATE'S GUIDELINES WERE THE FIRST OF THEIR KIND AND COULD HELP SHAPE THE FEDERAL RULES AMONG OTHER THINGS THE GUIDELINES SPECIFY METHODS FOR MEASURING POTENTIAL ANTITRUST IMPACT ACCORDING TO THE GEOGRAPHY OF PATIENTS SERVED BY THE INSTITUTION INDUSTRIES THAT ARE INTENSELY COMPETITIVE WITH EXCESS OF INSTALLED CAPACITY DO FIND IT EASIER TO MERGE UNDER ANTITRUST LAWS SAID WILLIAM BROWNSBERGER A MASSACHUSETTS ASSISTANT ATTORNEY GENERAL THIS RECOGNIZES AT THIS TIME THE HOSPITAL INDUSTRY IS SUCH AN INDUSTRY WE'RE NOT CHANGING ANTITRUST LAW AS IT APPLIES TO HOSPITALS IN A SPEECH LAST WEEK HILLARY RODHAM CLINTON TOLD HOSPITAL EXECUTIVES THAT THE FEDERAL GOVERNMENT IS DEVELOPING GUIDELINES TO CLARIFY HOW THEY CAN ENTER INTO MERGERS JOINT VENTURES AND OTHER FORMS OF COLLABORATION WITHOUT FEAR OF VIOLATING FEDERAL ANTITRUST LAWS HOSPITALS HAVE ASKED GOVERNMENT OFFICIALS TO ISSUE SUCH CLARIFYING GUIDELINES IN ORDER TO REDUCE A CHILLING EFFECT ON PROPOSED CONSOLIDATIONS MR BROWNSBERGER SAID THE GUIDELINES DON'T ADDRESS ANTITRUST RULES ON HOSPITAL JOINT VENTURES SUCH AS AGREEMENTS BY NEIGHBORING HOSPITALS TO CONSOLIDATE OVERLAPPING DEPARTMENTS AND FOCUS ON DIFFERENT COMPLEMENTARY MEDICAL SPECIALTIES FIVE MAJOR TEACHING HOSPITALS IN BOSTON RECENTLY DISCLOSED THEY ARE HOLDING TALKS ON SUCH COLLABORATION TO ELIMINATE REDUNDANCIES SUCH AS MULTIPLE HEARTTRANSPLANT TEAMS IN NEIGHBORING HOSPITALS MR BROWNSBERGER DECLINED TO COMMENT ON WHETHER THE PROPOSED COLLABORATION WHICH IS STILL IN THE PRELIMINARY PLANNING STAGE WOULD VIOLATE STATE ANTITRUST LAW FREDRIC ENTIN GENERAL COUNSEL OF THE AMERICAN HOSPITAL ASSOCIATION ADDED THAT HOSPITAL CONSOLIDATION POSES THORNY ANTITRUST PROBLEMS NEEDING CLARIFICATION FOR INSTANCE BECAUSE MANY COMMUNITIES HAVE ONLY A FEW HOSPITALS MERGING TWO OR MORE OF THEM GENERALLY WOULD CREATE MARKET CONCENTRATION CUSTOMARILY PRESUMED TO BE ANTICOMPETITIVE ABOUT 20 STATES HAVE ENACTED OR ARE CONSIDERING LAWS THAT CREATE LIMITED EXCEPTIONS TO ANTITRUST LAW BECAUSE OF SUCH PROBLEMS MR ENTIN SAID THE LAWS TYPICALLY SPECIFY THAT STATE DEPARTMENTS OF HEALTH OR OTHER HEALTHCARE AGENCIES REVIEW PROPOSED HOSPITAL MERGERS TO ENSURE THAT THEY ARE IN THE PUBLIC INTEREST HE SAID 9308200070 930820 LETTERS TO THE EDITOR NOTILL FARMS BETTER ALL THE WAY AROUND YOUR JULY 8 ARTICLE ON NOTILL FARMS GIVES READERS NO CLUE THAT THE HERBICIDE USE TABLES REPRESENT ONLY 29 OF THE CORN GROWN IN IOWA SPECIFICALLY CORN GROWN ON THE SAME LAND WHERE CORN WAS GROWN THE PREVIOUS YEAR THE OTHER 71 OF IOWA'S CORN IS GROWN IN ROTATION WITH SOYBEANS AND SOME HAY OR OATS THE DATA IN THE TABLE ARE NOT STATISTICALLY SIGNIFICANT ESPECIALLY FOR NOTILL WHERE DATA COME FROM A TOTAL OF ONLY 11 FIELDS ALACHLOR IS REPRESENTED BY ONLY ONE FIELD CYANAZINE THREE FIELDS METOLACHLOR EIGHT FIELDS AND ATRAZINE 10 FIELDS ANY PHD WILL TELL US THAT ONE SAMPLE IS NOT A SCIENTIFICALLY DEFENSIBLE REPRESENTATION OF A LARGE POPULATION THE ARTICLE FAILED TO INCLUDE DATA THAT THE AGRICULTURE DEPARTMENT COLLECTED ON THREE OTHER CHEMICALS 24D CHLORPYRIFOS AND TERBUFOS NOTILL FARMERS USED LESS OF EACH OF THESE THREE CHEMICALS IN ALL CASES THAN DID THEIR LOWTILL AND CONVENTIONAL TILL COUNTERPARTS APPARENTLY THE AUTHOR FELT THIS DATA WOULD HAVE DILUTED HIS CASE THAT NOTILL WAS WORSE FOR THE ENVIRONMENT AND THE CONSUMER THAN CONVENTIONAL METHODS BURIED WITHIN THE ARTICLE IS A MENTION OF THE POTENTIAL FOR LESS CONTAMINATION OF SURFACE WATERS FROM NOTILL FIELDS BUT THE MORE VISABLE TABLE DOES NOT REFLECT IT NOTILL FIELDS CONTRIBUTE LESS THAN ONETHIRD AS MUCH HERBICIDES TO STREAMS AS CONVENTIONAL MOLDBOARD PLOW TILLAGE THE TABLE MAY BE ACCURATE WITH RESPECT TO RAW DATA BUT IT IS SCIENTIFICALLY INVALID AND UNREPRESENTATIVE OF 71 OF IOWA'S CORN CROP DESPITE THE ARTICLE'S INCOMPLETE DATA ABOUT NOTILL I CONCLUDE THAT NOTILL IS STILL A FAR BETTER SYSTEM FOR THE ENVIRONMENT THE CONSUMER AND THE FARMER THAN CONVENTIONAL MOLDBOARD PLOW TILLAGE 9308200069 930820 MOTOROLA TO INVEST IN SCOTLAND SCHAUMBURG ILL MOTOROLA INC SAID IT WILL INVEST ABOUT 72 MILLION IN ITS EAST KILBRIDE SCOTLAND SEMICONDUCTOR FACTORY TO EXPAND THE PLANT'S CHIPMAKING CAPACITY THE INVESTMENT WILL CREATE 180 NEW JOBS AT THE PLANT MOTOROLA SAID 9308200068 930820 COSTLIER LABOR FEWER JOBS THE PRICE OF A HEALTH CARE MANDATE BY CARLOS BONILLA SPEAKING TO THE AMERICAN HOSPITAL ASSOCIATION EARLIER THIS MONTH HILLARY RODHAM CLINTON QUESTIONED WHY COMPANIES THAT DO NOT PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES SHOULD BE ALLOWED TO GET WHAT AMOUNTS TO A FREE RIDE MRS CLINTON WHO HEADED THE WHITE HOUSE HEALTH CARE TASK FORCE DEMONSTRATED WITH THIS COMMENT THAT SHE HAD NO IDEA AT ALL HOW HEALTH CARE IS ACTUALLY FINANCED IN AMERICA MRS CLINTON HAS CONFUSED EMPLOYMENTBASED HEALTH INSURANCE WITH EMPLOYERPAID HEALTH INSURANCE IN FACT THERE IS NO SUCH THING AS EMPLOYERPAID HEALTH INSURANCE ALL WORKERS WHO RECEIVE HEALTH INSURANCE THROUGH THEIR PLACE OF EMPLOYMENT PAY FOR THAT COVERAGE EITHER DIRECTLY THROUGH DEDUCTIONS FROM THEIR PAYCHECKS OR INDIRECTLY THROUGH LOWER WAGES THE ABSENCE OF A HEALTH INSURANCE DEDUCTION ON A PAY STUB BY NO MEANS MAKES THIS AN EXPENSE PAID FOR BY EMPLOYERS BECAUSE OF THIS CONFUSION MRS CLINTON HAS FAILED TO ASK THE QUESTION THAT BELONGS AT THE CORE OF ANY DISCUSSION OF A HEALTH CARE MANDATE WHAT WILL BE THE IMPACT ON EMPLOYMENT OF A FEDERALLY MANDATED WAGE INCREASE OF APPROXIMATELY 5000 THE EMPLOYER'S SHARE OF THE COST OF PROVIDING HEALTH INSURANCE COVERAGE FOR A WORKER WITH DEPENDENTS THAT THE ADMINISTRATION IS PROPOSING ESTIMATE JUNE O'NEILL AND DAVID O'NEILL BOTH PROFESSORS OF ECONOMICS AT BARUCH COLLEGE CITY UNIVERSITY OF NEW YORK HAVE THE ANSWER IN A STUDY PREPARED FOR THE EMPLOYMENT POLICIES INSTITUTE RECOGNIZING THAT A MANDATE REQUIRING EMPLOYERS TO PAY THEIR WORKERS' HEALTH INSURANCE EXPENSES TRANSLATES DIRECTLY INTO AN INCREASE IN LABOR COSTS THE O'NEILLS ESTIMATE THAT THIS INCREASED COST WILL LEAD TO THE LOSS OF 31 MILLION JOBS THESE LOST JOBS WILL NOT BE SCATTERED RANDOMLY ACROSS THE ECONOMY THEY WILL BE HEAVILY CONCENTRATED IN JUST SEVEN INDUSTRIES MORE THAN 75 OF THE LOST JOBS WILL BE IN INDUSTRIES SUCH AS RESTAURANTS OTHER SECTORS OF RETAIL TRADE AND CONSTRUCTION ALTHOUGH SEEMINGLY UNRELATED THESE SEVEN INDUSTRIES SHARE ONE COMMON TRAIT THEY ARE ALL EMPLOYERS OF LARGE NUMBERS OF LOWWAGE AND THEREFORE MORE OFTEN UNINSURED WORKERS THE DISPROPORTIONATELY LARGE CONCENTRATION OF JOB LOSSES IN THESE INDUSTRIES RELATIVE TO THE ECONOMY AS A WHOLE REFLECTS THE CONCENTRATION OF LOWWAGE WORKERS IN THESE SECTORS LABOR COSTS WOULD RISE BY MORE THAN 19 IN THE RESTAURANT INDUSTRY WITH A HEALTH CARE MANDATE COSTS WOULD RISE BY MORE THAN 33 IN PRIVATE HOUSEHOLD SERVICES AND BY MORE THAN 15 IN AGRICULTURE AN EXTERNAL INCREASE IN LABOR COSTS SUCH AS THE CLINTON MANDATE WOULD IMPOSE IS NOT A MAJOR ISSUE IN HIGHERWAGE INDUSTRIES IN THESE INDUSTRIES ANY COSTS THAT ARISE WILL BE QUICKLY SHIFTED BACK ONTO PAYROLLS NOT NECESSARILY THROUGH AN IMMEDIATE REDUCTION IN WAGES ALTHOUGH SOME OF THAT WILL NO DOUBT HAPPEN BUT MORE OFTEN FROM AN EROSION IN WAGE INCREASES UNTIL THE COMPENSATION PACKAGE IS BROUGHT BACK INTO LINE THIS CANNOT HAPPEN AS READILY FOR LOWWAGE JOBS CUTTING A PLANNED 5 WAGE INCREASE ON A 40000 JOB BY HALF SHIFTS 1000 OF THE MANDATE ONTO A WORKER'S WAGES IN JUST ONE YEAR IN THIS EXAMPLE A COMPLETE SHIFTING OF THE MANDATE'S COST CAN BE ACCOMPLISHED IN FIVE YEARS AN EMPLOYER COST HAS BEEN CONVERTED INTO AN EMPLOYEE COST BUT IT WOULD TAKE 15 YEARS OF SUCH SHIFTING TO ACCOMPLISH THE SAME FOR A MINIMUMWAGE JOB MOREOVER FASTER SHIFTING THROUGH AN IMMEDIATE REDUCTION IN THE EARNINGS OF LOWWAGE WORKERS IS BLOCKED BY THE MINIMUM WAGE AND EVEN WITHOUT THE MINIMUMWAGE CONSTRAINT A SERIOUS INSTITUTIONAL CONSTRAINT COMES INTO PLAY WHO WOULD WORK AT A 10000AYEAR JOB ONLY TO SEE CASH WAGES HALVED TO 5000 A BLUE CROSS CARD WON'T PAY THE RENT IN LOWWAGE JOBS THE ONLY MEANS TO REDUCE LABOR COSTS IS TO REDUCE LABOR AND WHEN LABOR COSTS ARE A HIGH PERCENTAGE OF TOTAL OPERATING COSTS AS THEY ARE IN THE MOST AFFECTED INDUSTRIES THE EFFECT WILL BE LARGE JOB LOSSES JOB LOSSES ARE NOT RELATED TO THE SIZE OF THE FIRM ALTHOUGH THE ADMINISTRATION HAS SPOKEN OFTEN OF ITS INTENTION TO ACCOMMODATE SMALL BUSINESS BUSINESS SIZE IS A CRUDE DETERMINANT MANY SMALL BUSINESSES SUCH AS LAW FIRMS AND VENTURE CAPITAL FIRMS ARE MUCH BETTER SUITED TO ABSORB HIGHER LABOR COSTS THAN SOME OF THE LARGEST COMPANIES PROVIDING MOSTLY ENTRYLEVEL JOBS CLEARLY A MANDATE ON A RESTAURANT WITH 100 EMPLOYEESMANY OF THEM PARTTIMERS WORKING FOR RELATIVELY LOW WAGESHAS A VERY DIFFERENT IMPACT THAN A MANDATE ON GENERAL MOTORS YET BOTH ARE LIKELY TO BE VIEWED AS CAPABLE OF ABSORBING THE NEW MANDATE AS A CONSEQUENCE LOWWAGE WORKERS THE PORTION OF THE WORK FORCE THAT A MANDATE AIMS TO HELP WILL SUFFER THE BULK OF THE JOB LOSSES FROM A MANDATE PRESIDENT CLINTON HAS VOWED TO THE AMERICAN PEOPLE TO END WELFARE AS WE KNOW IT HIS PRESCRIPTION APPEARS TO RELY HEAVILY ON A FAMILIAR REMEDY TWO YEARS OF EDUCATION AND TRAINING FOR ADULT RECIPIENTS AFTER WHICH THEY WOULD BE EXPECTED TO FIND A JOB AND CEASE RELIANCE ON GOVERNMENT ASSISTANCE THE PRESIDENT'S PROMISE AT LEAST ACCORDING TO THE CAMPAIGN RHETORIC IS TO HELP PUBLIC ASSISTANCE RECIPIENTS FIND NOT ONLY A JOB BUT A GOOD JOB THE QUESTION BEFORE US IS WHETHER THE PRESIDENT'S DEFINITION OF A GOOD JOB ONE THAT APPEARS TO INCLUDE A GENEROUS MANDATED HEALTH BENEFITS PACKAGE EFFECTIVELY ELIMINATES THE PROSPECTS OF OBTAINING ANY JOB AT ALL MANY OF THE PEOPLE SEEKING TO MOVE FROM WELFARE TO WORK ARE QUALIFIED ONLY FOR LOWERWAGE POSITIONS THEY CAN MOVE UP THE LADDER ONLY IF THEY ARE GIVEN THE OPPORTUNITY TO WORK BUT A MANDATE IS INSENSITIVE TO THE LABOR MARKET IT WOULD VASTLY INCREASE THE COST OF HIRING THESE WORKERS THEREBY BECOMING A LATENT DISINCENTIVE TO HIRE THE TYPICAL SINGLE MOTHER ON WELFARE THESE INDIVIDUALS CANNOT PAY FOR BENEFITS BY TRADING WAGES THEY PAY WITH THEIR JOBS PRESIDENT CLINTON SEEMS TO HAVE TAKEN NOTE OF SOME OF THE PROBLEMS A MANDATE WOULD IMPOSE ON LOWWAGE INDUSTRIES SPEAKING TO THE NATION'S GOVERNORS MONDAY THE PRESIDENT STATED THAT A MANDATE HAD THE POTENTIAL TO PLACE LOWWAGE INDUSTRIES IN DEEP TROUBLE THE PRESIDENT WENT ON TO OFFER THE HOPE THAT A MANDATE'S COSTS WOULD BE CAPPED AT ABOUT 7 OF PAYROLL CAPS ON THE MANDATE'S COST IF THEY ARE ACTUALLY REALIZED WILL REDUCE THE JOB LOSS ESTIMATES PRESENTED HERE BUT IT IS STILL PREMATURE TO BANK ON CAPS AT LEAST AT THE LEVEL DISCUSSED BY THE PRESIDENT TOO MUCH OF THE FINANCING FOR HEALTH REFORM HINGES ON PREDICTED SAVINGS FROM THE DELIVERY OF HEALTH CARE SAVINGS THAT HAVE PROVED ELUSIVE TO MORE THAN ONE PRESIDENT MOREOVER THE PRESIDENT'S HOPE TO CAP THE MANDATE COST AT 7 MAY BE HOPELESSLY UNREALISTIC RECENT ESTIMATES HAVE PLACED THE COST OF HEALTH CARE REFORM AT BETWEEN 10 AND 12 OF PAYROLL A CAP AT 7 WOULD LEAVE THE PRESIDENT MANY BILLIONS OF DOLLARS SHORT OF THE REVENUE HE NEEDS FOR REFORM JUST MONTHS AFTER PASSING A LARGE TAX INCREASE CAPS ON MANDATES MAY VERY WELL EXPERIENCE THE SAME FATE AS THE MIDDLECLASS TAX CUT YET JOB LOSSES WILL CONTINUE EVEN WITH THE PRESIDENT'S ADMISSION THAT ACCOMMODATION NEEDS TO BE MADE FOR THE NEEDS OF LOWWAGE WORKERS AND INDUSTRIES THESE LOSSES WILL ARISE BECAUSE THE PRESIDENT IS PROCEEDING ON THE SAME MISTAKEN ASSUMPTION AS MRS CLINTON THAT IT IS EMPLOYERS WHO PAY FOR BENEFITS OUT OF PROFITS INSTEAD OF WORKERS OUT OF WAGES THE NATION'S ECONOMISTS AGREE THIS SPRING THE SURVEY CENTER AT THE UNIVERSITY OF NEW HAMPSHIRE POLLED MEMBERS OF THE AMERICAN ECONOMICS ASSOCIATION REGARDING THEIR VIEWS ON HEALTH CARE MANDATES THE ASSOCIATION IS THE LEADING PROFESSIONAL BODY FOR AMERICAN ECONOMISTS EIGHTY PERCENT OF ECONOMISTS RESPONDED THAT A HEALTHCARE MANDATE WOULD RESULT IN LOST JOBS FOR LOWER WAGE WORKERS THE O'NEILLS HAVE QUANTIFIED THAT LOSS IN HIS SPEECH TO THE NATION'S GOVERNORS THE PRESIDENT WARNED THE PUBLIC TO STOP BELIEVING THAT HEALTH CARE IS PAID FOR BY THE TOOTH FAIRY HE WOULD DO WELL TO HEED HIS OWN ADVICE MR BONILLA IS CHIEF ECONOMIST OF THE EMPLOYMENT POLICIES INSTITUTE THIS RESEARCH ORGANIZATION WHOSE MEMBERS ARE DRAWN FROM THE HOSPITALITY INDUSTRY FOCUSES ON ENTRYLEVEL AND SERVICESECTOR EMPLOYMENT ISSUES 9308200067 930820 TECHNOLOGY & HEALTH BATTERY MAY MAKE ELECTRIC VEHICLES MUCH MORE VIABLE BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL CHEMISTS AT CLARK UNIVERSITY IN WORCESTER MASS SAID THEY HAVE DEVELOPED A BATTERY THAT MAY REPRESENT A SIGNIFICANT STEP TOWARD A VIABLE ELECTRIC CAR IN THE LATEST ISSUE OF SCIENCE THE RESEARCHERS CLAIMED THAT THE BATTERY PROVIDES SIX TIMES AS MUCH POWER PER UNIT OF WEIGHT AS THE CURRENT LEADACID BATTERIES BEING USED IN EXPERIMENTAL ELECTRIC VEHICLES MOREOVER THEY SAID THE BATTERY USES WIDELY AVAILABLE AND RELATIVELY LOWCOST MATERIALS AND RUNS AT ROOM TEMPERATURE THE BATTERY'S UNIQUENESS LIES IN ITS COUPLING OF SULFUR AND ALUMINUM TO GENERATE ELECTRICAL CURRENT SAID STUART LICHT A CHEMIST WHO DEVELOPED THE BATTERY WITH ANOTHER CHEMIST DHARMASENA PERAMUNAGE OTHER TYPES OF BATTERIES UNDER DEVELOPMENT FOR ELECTRIC CARS INCLUDE SODIUMSULFUR NICKELMETAL HYDRIDE NICKELCADMIUM AND NICKELIRON MR LICHT SAID THAT MOST OTHER BATTERIES HAVE SIGNIFICANT DISADVANTAGES THE TRADITIONAL LEADACID BATTERY HE SAID IS TOO HEAVY AND AN ENVIRONMENTAL PROBLEM BECAUSE OF THE LEAD CONTENT THE SODIUMSULFUR BATTERY WHICH HAS BEEN IN DEVELOPMENT FOR NEARLY 20 YEARS IS PROMISING ON PAPER HE SAID BUT IT OPERATES AT TEMPERATURES BETWEEN 600 AND 700 DEGREES FAHRENHEIT THAT REQUIRE EXPENSIVE INSULATING ALSO SODIUM LIKE LITHIUM IS EXPLOSIVE WHEN IT COMES IN CONTACT WITH MOISTURE THE BATTERIES OUT THERE ARE EITHER ENVIRONMENTALLY HAZARDOUS OR CAN'T POWER A CAR FOR LARGE DISTANCES WITHOUT A RECHARGE HE SAID WHAT WE HAVE IS SOMETHING VERY NOVEL BUT AT THE SAME TIME MR LICHT CAUTIONED THAT THE TEAM'S SULFURALUMINUM BATTERY IS STILL IN EARLY STAGES OF DEVELOPMENT SULFUR ACTS AS THE CATHODE OR POSITIVE TERMINAL IN THE BATTERY RESEARCHERS CONVERTED THE LIGHTWEIGHT MATERIAL AN INSULATOR AT ROOM TEMPERATURE INTO A CONDUCTOR BY SIMPLY IMMERSING IT IN A POLYSULFIDE SOLUTION IN CONTRAST IN THE SODIUMSULFUR BATTERY SULFUR MUST BE MELTED AT TEMPERATURES ABOVE 600 DEGREES FAHRENHEIT TO MAKE IT A CONDUCTOR HE SAID THE ALUMINUM IS THE ANODE OR NEGATIVE TERMINAL IT'S LIGHTER THAN OTHER MATERIALS CURRENTLY USED IN BATTERIES AND STORES MORE ENERGY THAN SAY SODIUM ALSO IT ISN'T A PROBLEM ENVIRONMENTALLY LIKE CADMIUM AND LEAD SAID MR LICHT THE CHEMIST SAID THEIR BATTERY HAS DEMONSTRATED AN ENERGY CAPACITY OF AS MUCH AS 200 WATT HOURS PER KILOGRAM THE LEADACID BATTERIES ON THE OTHER HAND PROVIDE 35 WATT HOURS PER KILOGRAM AND ENABLE CARS TO TRAVEL BETWEEN 60 AND 80 MILES BEFORE RECHARGE MR LICHT SAID PRELIMINARY INDICATIONS ARE THAT THE SULFURALUMINUM BATTERY HAS THE POTENTIAL TO DRIVE A CAR MORE THAN 300 MILES BEFORE RECHARGE ROUGHLY THE DISTANCE A CAR NOW TRAVELS ON A FULL TANK OF GASOLINE 9308200066 930820 BUSINESS BRIEF PORTLAND GENERAL CORP OREGON PUBLIC UTILITY PANEL IS ASKED TO ALLOW RATE RISE PORTLAND GENERAL ELECTRIC CO PORTLAND ORE SAID IT IS SEEKING PERMISSION FROM THE OREGON PUBLIC UTILITY COMMISSION TO RAISE ITS RESIDENTIAL AND SMALL FARM CUSTOMER PRICES AN AVERAGE OF 79 EFFECTIVE OCT 1 THE UTILITY A UNIT OF PORTLAND GENERAL CORP SAID IT IS ASKING FOR AN INCREASE BECAUSE OF THE BONNEVILLE POWER ADMINISTRATION'S NEARLY 16 RATE BOOST BONNEVILLE IS A FEDERAL AGENCY THAT TRANSMITS AND SELLS HYDROELECTRIC POWER IN SEVEN STATES UNDER THE PROPOSED INCREASE PORTLAND GENERAL SAID ITS AVERAGE RESIDENTIAL CUSTOMER USING 1000 KILOWATTHOURS A MONTH WOULD PAY 5353 AN INCREASE OF ABOUT 390 A MONTH COMMERCIAL AND INDUSTRIAL CUSTOMERS WOULDN'T BE DIRECTLY AFFECTED BY THE PROPOSED PRICE INCREASE 9308200065 930820 BUSINESS BRIEF GENTRA INC HOLDERS OF DEBT AND SHARES APPROVE PLANNED ASSET SALE HOLDERS OF GENTRA INC'S SHARES AND DEBT APPROVED A PLAN TO SELL VIRTUALLY ALL OF THE FINANCIALSERVICES CONCERN'S OPERATING ASSETS TO ROYAL BANK OF CANADA THE APPROVALS CAME IN A SERIES OF FOUR MEETINGS HELD THIS WEEK THE PLAN WHICH HAS BEEN IN THE WORKS FOR SEVERAL MONTHS STILL REQUIRES FINAL APPROVAL FROM AN ONTARIO COURT UNDER THE PROPOSAL MONTREALBASED ROYAL BANK HAS AGREED TO PAY 166 BILLION CANADIAN DOLLARS US126 BILLION FOR THE GENTRA ASSETS TORONTOBASED GENTRA FORMERLY NAMED ROYAL TRUSTCO LTD WILL CONTINUE AS A SEPARATE ENTITY TO LIQUIDATE LOAN PORTFOLIOS COMPOSED MAINLY OF COMMERCIAL REALESTATE LOANS IN CANADA BRITAIN AND THE WESTERN US IN ORDER TO REPAY THE COMPANY'S DEBT OVER THE NEXT FIVE YEARS 9308200064 930820 LEISURE & ARTS BOOKSHELF WORSHIPPING AT THE ALTAR OF THATCHIANITY BY DAVID BROOKS I RECENTLY TURNED ON THE BBC AND THERE WERE TWO OF BRITAIN'S LEADING JOURNALISTS WITH THEIR HEADS APPARENTLY IN MARGARET THATCHER'S NOSTRILS THE SEGMENT OF THE SHOW WAS ON JOHN MAJOR BUT TO ATTRACT VIEWERS THE PRODUCER HAD BUILT A SET WITH A GIANT IMAGE OF BARONESS THATCHER AND THE JOURNALISTS' CHAIRS WERE ARRANGED SO THAT THEIR HEADS FIT SNUGLY IN FRONT OF HER NOSE BRITISH POLITICS IS LIKE THAT THESE DAYS A DINNER PARTY AT WHICH THE GUESTS KEEP NOTICING THAT KING KONG IS LOOKING IN THE WINDOW THE GUARDIAN RECENTLY RAN A FULLPAGE PHOTO SHOWING THE BOTTOM THIRD OF A WOMAN'S BODY WITH THE CAPTION IT HAS TO BE SAID THAT SHE COMES ALIVE WHEN THERE IS A WHIFF OF GUNFIRE IN THE AIR THEY DIDN'T HAVE TO IDENTIFY THE SUBJECT IT WAS SHE IN THE SPECTATOR MATTHEW PARRIS WROTE AN ESSAY ABOUT MRS THATCHER'S NEW ROLE IN WHICH HE DIDN'T EVEN MENTION HER NAME UNTIL THE LAST SENTENCE MR PARRIS OBSERVED THAT JUST AS A MESSIAH STARTS HIS LIFE AS A REAL PERSON DOING REAL MEASURABLE THINGS AND THEN ENDS HIS LIFE AS AN IDEALIZATION OF A MAN SO SHE HAS PASSED FROM THE PART OF HER LIFE IN WHICH SHE ACTED INTO THE PART IN WHICH SHE JUST IS THATCHERISM IS DEAD MR PARRIS CONCLUDED HIS PIECE HAIL THE DAWN OF THATCHIANITY WHAT IS IT ABOUT THIS WOMAN THAT SHE LIVES EVEN AFTER POLITICAL DEATH MAKE NO MISTAKE POLITICALLY SHE'S A GONER AND THAT MAKES THE STORY OF HER POLITICAL ASSASSINATION RESONATE LIKE SHAKESPEARE EVIDENTLY IT STARTS WITH SEX APPEAL PEOPLE WHO HAVE MET HER IN SMALL GROUPS TALK ABOUT HER EYES AND SEDUCTIVE MANNER JUST AFTER THE DIRECTOR DAVID LEAN MET HER HE HISSED IN A STATE OF HIGH EXCITEMENT SHE IS ALL WOMAN ALL WOMAN ALL WOMAN AS MANY WALL STREET JOURNAL EDITORIAL WRITERS HAVE DISCOVERED BELIEF IN PRIVATIZATION SCHOOL CHOICE AND STRICT MONETARY POLICY DOESN'T AUTOMATICALLY PRODUCE THE SORT OF RAW MAGNETISM THAT CAUSES PEOPLE TO SWOON AT FIRST MEETING MRS THATCHER'S MAGNETISM IS INSEPARABLE FROM HER CONVICTION BUT THOSE CONVICTIONS GO DEEPER THAN MERE POLICY BUT LIKE MOST PEOPLE OF ACTION SHE'S UNABLE TO ARTICULATE THE ELEMENTS OF HER PRESENCE THAT REALLY MATTER THE LATE SHIRLEY ROBIN LETWIN DOES A SUPERB JOB OF DESCRIBING THATCHERISM'S MORAL ASPIRATIONS WHICH IS WHERE POLITICS GETS FORGED IN THE ANATOMY OF THATCHERISM TRANSACTION 377 PAGES 3295 LETWIN ARGUES THAT THATCHERISM IS BUILT AROUND THE VIGOROUS VIRTUES THE INDIVIDUAL PREFERRED BY THATCHERITES IS UPRIGHT SELFSUFFICIENT ENERGETIC ADVENTUROUS INDEPENDENTMINDED LOYAL TO FRIENDS ROBUST AGAINST ENEMIES THUS WHEN THATCHERITES SOUGHT TO PRIVATIZE THEY DID SO VIA MASS PUBLIC OFFERS THOUGH THAT METHOD DID NOT YIELD THE HIGHEST RECEIPTS THATCHERITES WANTED TO MAKE AS MANY PEOPLE OWNERS AS POSSIBLE OWNING SHARES OR COUNCIL HOUSES THEY BELIEVED WOULD MAKE PEOPLE BEHAVE MORE LIKE MASTERS OF THEIR OWN DESTINY THATCHERITE TAX POLICIES WERE DESIGNED TO MAKE PEOPLE WORK MORE AGGRESSIVELY AS UNDOUBTEDLY BRITS NOW DO HER SCHOOL REFORMS WERE DESIGNED TO TAKE SCHOOLS OUT OF A VAST EDUCATIONAL SYSTEM AND MAKE THEM INDEPENDENT INSTEAD OF BEHAVING LIKE COGS THEY WOULD BEHAVE LIKE SURROGATE FAMILIES WITH ADMINISTRATORS PARENTS AND TEACHERS DETERMINING THEIR OWN SCHOOL'S IDIOSYNCRATIC FATE MRS THATCHER'S CONTRIBUTION WAS THAT SHE INSTINCTIVELY PERCEIVED THE LINK BETWEEN PUBLIC POLICIES AND PERSONAL CHARACTER AND SO WAS THE OPPOSITE OF A TECHNOCRAT MANAGER OR WONK SOMETIMES IN LETWIN'S BOOK IT IS HARD TO KNOW IF SHE IS DESCRIBING REAL THATCHERISM OR THATCHERISM AS MICHAEL OAKESHOTT LETWIN'S GREAT TEACHER WOULD HAVE WANTED IT TO BE BUT IN GENERAL SHE IS PERSUASIVE THE BEAUTY OF THE BOOK IS THE WAY IT CONNECTS POLICY DETAILS TO FUNDAMENTAL PHILOSOPHY AND SHOWS HOW THE LATTER DRIVES THE FORMER WHETHER POLITICIANS REALIZE IT OR NOT IT WOULD BE INTERESTING IF SOMEBODY WERE TO WRITE A SIMILAR BOOK ABOUT REAGANISM AS LETWIN EMPHASIZES THATCHERISM WAS DISTINCTLY BRITISH REAGANISM HAD A STRONGER RELIGIOUS COMPONENT TORY VIRTUES ARE SECULAR NOR DO AMERICANS USE THE PHRASE THE SMACK OF STRONG GOVERNMENT AS A COMPLIMENT THATCHERISM'S FAILURE LETWIN WRITES WAS THAT IT HAD NOT DEVELOPED AN UNDERSTANDING OF HOW VIGOR ONCE RECREATED IN BRITAIN COULD BE TRANSLATED INTO SOMETHING CALM GENTLE PLEASANT EVEN THE THATCHERITES THEMSELVES NOW SEEM TO HUNGER FOR A POLITICAL STYLE THAT IS IRONIC AND HAPPY ON THIS SIDE OF THE ATLANTIC R EMMETT TYRRELL WROTE AN UNDERAPPRECIATED BOOK THE CONSERVATIVE CRACKUP THE HEROES OF WHICH ENJOY A MEDITERRANEAN LOVE OF LIFE MAYBE A NEW LEADER WILL COME ALONG WHO FORCEFULLY EMBODIES THE VIGOROUS VIRTUES AND A SENSE OF FUN ONE OF LETWIN'S PREVIOUS BOOKS WAS ON THE GENTLEMANLY IDEAL AS EXPRESSED IN THE NOVELS OF ANTHONY TROLLOPE MAYBE IF MRS THATCHER HAD LEARNED TO SAVOR CLARET AND RIDE TO HOUNDS HER STYLE OF POLITICS WOULDN'T HAVE BEEN SO EXHAUSTING AND HER FORCED RETIREMENT WOULD BE EASIER TO BEAR MR BROOKS IS DEPUTY EDITORIALPAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9308200063 930820 SHORT INTEREST ON BIG BOARD HITS NEW HIGH CHRYSLER WALMART DISNEY ARE AMONG LEADERS AMEX ALSO HAS RECORD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST LEVELS ON THE NEW YORK STOCK EXCHANGE CLIMBED 55 TO A RECORD AT MIDAUGUST SURPASSING A PREVIOUS HIGH SET ON JUNE 15 BIG BOARD SHORT INTEREST TOTALED 1095760529 SHARES UP FROM 1039091121 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ALSO REACHED A RECORD LEVEL UP ABOUT 7 FROM THE PRIOR MONTH IT WAS THE FIRST TIME THAT THE MONTHLY FIGURE TOPPED 100 MILLION SHARES CHRYSLER CORP AGAIN LED THE LIST OF COMPANIES WITH THE HIGHEST BIG BOARD SHORT INTEREST 173 MILLION SHARES BUT THAT WAS A DECREASE OF 613000 SHARES FROM THE MIDJULY TRADING MONTH WALMART STORES INC WAS NEAR THE TOP OF THE LIST WITH 157 MILLION OF ITS SHARES SHORTED AN INCREASE OF 15 MILLION FROM MIDJULY WALT DISNEY CO CONTINUED TO SHOW HIGH SHORT INTEREST 148 MILLION SHARES ALTHOUGH THAT REPRESENTED A DECREASE OF 420767 SHARES FROM THE MONTH BEFORE TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORT INTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY US SURGICAL CORP IN KEEPING WITH THE PREVIOUS MONTH SHOWED A SIGNIFICANT INCREASE ABOUT 11 MILLION SHARES TO A TOTAL OF 133 MILLION INVESTORS BRACED FOR THE WORST AS THE FORMER HIGHFLYING SUPPLIER OF SURGICAL EQUIPMENT REPORTED A SECONDQUARTER LOSS SIGNIFICANTLY WIDER THAN BEARISH ANALYSTS' LOSS ESTIMATES MARRIOTT CORP AND HOME DEPOT INC REMAINED POPULAR WITH SHORT SELLERS AND REVERSED DECLINES IN THEIR RESPECTIVE SHORT POSITIONS FROM THE PREVIOUS MONTH MARRIOTT'S ROSE BY ABOUT 707000 SHARES TO 126 MILLION SHARES WHILE HOME DEPOT'S ROSE ABOUT 762900 SHARES TO 135 MILLION ON THE AMEX SHORT INTEREST ROSE TO 105120608 SHARES FROM THE PREVIOUS RECORD OF 97686047 ADJUSTED REPORTED IN MIDJULY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO JUMPED TO 446 FROM 418 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 150000 SHARES EXISTED AT MIDAUGUST OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJULY SEE ACCOMPANYING TABLES WSJ AUG 9308200062 930820 BUSINESS BRIEF NESTLE SA STOUFFER UNIT TOLD TO END SODIUM MISREPRESENTATION AN ADMINISTRATIVE LAW JUDGE ORDERED STOUFFER FOOD CORP NOT TO MISREPRESENT THE SODIUM CONTENT OF ANY FROZENFOOD PRODUCT IT MARKETS IN THE FUTURE THE FEDERAL TRADE COMMISSION SAID THE ORDER FOLLOWS A JUDGE'S DECISION UPHOLDING FTC CHARGES THAT STOUFFER A UNIT OF NESTLE SA OF SWITZERLAND MADE DECEPTIVE CLAIMS REGARDING THE SODIUM CONTENT OF ITS LEAN CUISINE FROZEN ENTREES ACCORDING TO THE DECISION THE COMPANY'S LOWSODIUM ADVERTISING CAMPAIGN IN 1991 FOLLOWED A DECLINE IN MARKET SHARE FOR THE LEAN CUISINE LINE STOUFFER COULD NOT BE REACHED FOR COMMENT THE ORDER FOUND THAT ALTHOUGH THE SODIUM CONTENT OF LEAN CUISINE DISHES EXCEEDED PUBLIC GUIDELINES FOR LOWSODIUM CLAIMS THE COMPANY'S ADVERTISING SAID THE FOOD LINE WAS LOW IN SODIUM JUDGE JAMES P TIMONY REJECTED THE FTC'S ARGUMENT THAT STOUFFER'S USE OF THE GRAM RATHER THAN THE MILLIGRAM WHICH IS ONETHOUSANDTH OF A GRAM AND THE COMMONLY USED UNIT OF MEASUREMENT FOR SODIUM IN ITS ADS WAS UNFAIR AND DECEPTIVE ANNUAL 199091 SALES FOR STOUFFER'S LEAN CUISINE LINE WERE MORE THAN 200 MILLION ACCORDING TO THE DECISION 9308200061 930820 LAW PROSECUTORS OPEN THEIR CASE IN BEATING OF TRUCKER DURING LOS ANGELES RIOTS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PROSECUTORS BEGAN THEIR CASE AGAINST TWO BLACK MEN ACCUSED OF BEATING WHITE TRUCKER REGINALD DENNY BY DECLARING WE ARE NOT HERE TO TRY THE LOS ANGELES RIOTS THE CASE WHICH HAS INFLAMED RACIAL PASSIONS IN THE NATION'S SECONDLARGEST CITY ULTIMATELY BOILS DOWN TO LEGAL QUESTIONS OF IDENTITY AND INTENT THEY SAID DEFENDANTS' ATTORNEYS HAVE COMPLAINED THAT THEIR CLIENTS ARE BEING BLAMED FOR THE RIOTS ARMED WITH THREE AMATEUR VIDEOTAPES ONE TELEVISION NEWS STATION'S TAPE AND MANY PHOTOGRAPHS PROSECUTORS HOPE TO WIN CONVICTIONS OF DAMIAN MONROE WILLIAMS AND HENRY KEITH WATSON ACCUSED OF PARTICIPATION IN CIVIL UNREST LAST YEAR THAT WAS SPARKED BY A STATE JURY'S ACQUITTAL OF FOUR WHITE POLICE OFFICERS WHO BEAT BLACK MOTORIST RODNEY KING AFTER THE VERDICT MANY BLACKS TOOK TO THE STREETS INCLUDING PROSECUTORS SAY MESSRS WILLIAMS AND WATSON THE TWO DENY THEY ARE THE MEN IN THE PICTURES A SUBSEQUENT FEDERAL TRIAL OF THE WHITE POLICE OFFICERS RESULTED IN TWO CONVICTIONS BUT THE RELATIVELY LIGHT 2 1/2YEAR SENTENCES HANDED DOWN A FEW WEEKS AGO ANGERED BLACKS ANEW THE TRIAL IN A LOCAL CRIMINAL COURTROOM DREW PROTESTERS WHO CLAIMED MESSRS WILLIAMS AND WATSON ARE BEING TREATED UNFAIRLY SHORTLY AFTER THE HIGHPROFILE ARRESTS OF THE TWO DEFENDANTS LAST YEAR PROSECUTORS IN COURT PAPERS SAID THE BEATING OF MR DENNY WHICH CAME A FEW HOURS AFTER THE KING VERDICT WAS ANNOUNCED WAS A MAJOR FORCE IN THE IGNITION OF THE RIOTS THEY HAVE NOW TAKEN A LESS INFLAMMATORY APPROACH UNDER A NEW DISTRICT ATTORNEY WITH A MORE CONCILIATORY STYLE DURING HIS OPENING STATEMENT ASSISTANT DISTRICT ATTORNEY LARRY MORRISON POINTED A RED LASER BEAM AT IMAGES OF MEN HE SAID WERE THE DEFENDANTS FOCUSING ON CLOTHING AND CHARACTERSTICS THAT HE SAID LEFT LITTLE DOUBT OF THEIR IDENTITY BUT MR WILLIAMS SAID IN A TELEVISED INTERVIEW THIS WEEK THAT HE IS NOT THE MAN SHOWN THROWING A BRICK AT MR DENNY'S HEAD IN A WELLPUBLICIZED VIDEOTAPE JUDGE JOHN W OUDERKIRK SCOLDED MR WILLIAMS'S LAWYER FOR ATTEMPTING TO TRY THE CASE IN THE MEDIA THE LAWYER REPEATED MR WILLIAMS'S CLAIM IN COURT THURSDAY BOTH MEN ARE CHARGED WITH ATTEMPTED PREMEDITATED MURDER AND COULD FACE LIFE IN PRISON MR WILLIAMS 20 YEARS OLD ALSO FACES CHARGES OF ASSAULT AND ROBBERY AGAINST SEVEN OTHER PEOPLE MR WATSON 28 IS CHARGED WITH CRIMES AGAINST TWO OTHER PEOPLE MR DENNY HAS RECOVERED FROM THE BEATING BUT HAS PERMANENT SKULL DAMAGE AND FACIAL DISFIGUREMENT THE JURY EMPANELED LATE LAST WEEK COMPRISES THREE MEN AND NINE WOMEN AND INCLUDES THREE HISPANICS FIVE WHITES THREE BLACKS AND ONE FILIPINO THEY HAVE BEEN WARNED FROM THE BEGINNING OF JURY SELECTION AGAINST TAKING OTHER FACTORS LIKE THE RODNEY KING BEATING CASE AND POTENTIAL UNREST FROM THIS CASE INTO ACCOUNT AS THEY WEIGH THE EVIDENCE 9308200060 930820 BUSINESS BRIEF SAFECARD SERVICES INC ILLINOIS COURT ENJOINS FIRM EXCHAIRMAN HALMOS SAYS SAFECARD SERVICES INC FORMER CHAIRMAN AND DIRECTOR PETER HALMOS SAID AN ILLINOIS STATE JUDGE IN CHICAGO ENJOINED THE COMPANY FROM PURSUING ITS LAWSUIT AGAINST HIM IN WYOMING STATE COURT AN ATTORNEY FOR MR HALMOS JIM HUNTER SAID MR HALMOS CONTENDS THE DISPUTE HAS NO CONNECTION TO WYOMING AND SHOULD BE DECIDED IN ILLINOIS THE ATTORNEY SAID THE ILLINOIS COURT'S ORDER WAS BASED ON A FINDING THAT THE COMPANY'S ACTION AGAINST MR HALMOS IN WYOMING COULD POSSIBLY RESULT IN FRAUD GROSS WRONG AND OPPRESSION OF HIM A SPOKESMAN FOR THE CREDIT CARD PROTECTION COMPANY DECLINED TO COMMENT UNTIL THE COMPANY REVIEWED THE RULING 9308200059 930820 BUSINESS BRIEF SOUTHERN PACIFIC RAIL CORP LOS ANGELES ENDS ACCORD TO BUY UNIT'S RAIL TRACK SOUTHERN PACIFIC LINES SAID LOS ANGELES ENDED AN AGREEMENT TO BUY ITS 20MILE ALAMEDA CORRIDOR RAIL TRACK BUT SAID THE CITY REAFFIRMED INTEREST IN THE PROJECT OVERALL SOUTHERN PACIFIC LINES BASED IN SAN FRANCISCO IS THE OPERATING UNIT OF SOUTHERN PACIFIC RAIL CORP THE SALE PART OF THE RAILROAD COMPANY'S ASSETRESTRUCTURING PROGRAM WAS ORIGINALLY PART OF THE CITY'S EFFORT TO REDUCE CONGESTION ON LOS ANGELES HIGHWAYS AND TO CREATE JOBS UNDER THE AGREEMENT WHICH HAD BEEN SIGNED THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS AND THE PORT OF LONG BEACH PLANNED A 260 MILLION PROJECT TO UPGRADE THE CORRIDOR FOR FREIGHT TRAFFIC THE PORT OF LOS ANGELES SAID IT DECIDED TO TERMINATE THE AGREEMENT DUE TO TIME CONSTRAINTS ENVIRONMENTAL CONDITIONS AND THE ABSENCE OF AGREEMENT WITH OTHER RAILROADS CONCERNING CORRIDOR OPERATIONS AND THE PAYMENT OF FEES FOR CORRIDOR USE ACCORDING TO THE COMPANY NONETHELESS A SOUTHERN PACIFIC SPOKESMAN SAID IT IS OUR BELIEF THAT WE CAN PUT THE DEAL BACK TOGETHER 9308200058 930820 BUSINESS BRIEF DEN DANSKE BANK PRETAX PROFIT IN FIRST HALF CLIMBED TO 3487 MILLION DENMARK'S LARGEST BANK DEN DANSKE BANK COPENHAGEN SAID ITS PRETAX PROFIT SOARED TO 24 BILLION KRONER 3487 MILLION IN THE FIRST SIX MONTHS FROM 6 MILLION KRONER A YEAR EARLIER MAINLY AS A RESULT OF GAINS ON SECURITIES KNUD SOERENSEN CHIEF EXECUTIVE OFFI CER DENIED THAT A LARGE PROPORTION OF THE SECURITIES GAINS COULD BE ATTRIBUTED TO CURRENCY SPECULATION DURING THE CURRENCY TURMOIL IN EUROPE DEN DANSKE BANK SAID THAT FIRSTHALF NET VALUATION GAINS ON SECURITIES FINANCIAL INSTRUMENTS AND HOLDINGS IN ASSOCIATED UNDERTAKINGS AMOUNTED TO 15 BILLION KRONER COMPARED WITH A LOSS OF 199 MILLION KRONER A YEAR EARLIER GAINS ON BONDS AND SHARES AMOUNTED TO 29 BILLION DANISH KRONER COMPARED WITH A LOSS OF 340 MILLION KRONER A YEAR EARLIER 9308200057 930820 INTERNATIONAL BRIEF VOLKSWAGEN AG EARLYRETIREMENT PROGRAM EXTENDED TO MORE WORKERS AS PART OF ITS CONTINUING COSTCUTTING MEASURES VOLKSWAGEN AG SAID IT WOULD OFFER EARLY RETIREMENT TO 3000 WORKERS WHO ARE 55 YEARS OLD THE LATEST EARLYRETIREMENT PROGRAM IS IN ADDITION TO PREVIOUS PLANS TO OFFER EARLY RETIREMENT TO 12500 WORKERS AGED 56 AND 57 IN JANUARY VW SAID IT WOULD TRY TO CUT ITS DOMESTIC STAFF BY 12500 AND ITS WORLDWIDE STAFF BY 36000 VW'S TOTAL WORLDWIDE EMPLOYMENT AT THE BEGINNING OF THE YEAR WAS 276000 HOWEVER KLAUS VOLKERT CHAIRMAN OF THE AUTO MAKER'S WORKER COUNCIL SAID THE UNIONS WOULD ACCEPT ONLY MEASURES TO REDUCE THE WORK FORCE THAT ARE ALREADY INCLUDED IN THE UNION CONTRACTS WITH VW AS A RESULT THE WORKER'S COUNCIL WILL OPPOSE MASS LAYOFFS PARTICULARLY IF THEY DON'T INCLUDE SEVERANCE BENEFITS AMONG THE MEASURES MR VOLKERT SAID VW COULD USE TO REDUCE ITS STAFF ARE TEMPORARY LAYOFFS IMPOSING A HIRING FREEZE AND USING WORKERS PART TIME 9308200056 930820 MARKETING & MEDIA ADVERTISING BUDWEISER HOPES FALL CLASSIC BLITZ REPLICATES SUCCESS OF BUD BOWL BY KEVIN GOLDMAN BUDWEISER RAISED BEER SALES IN JANUARY THE SLOWEST MONTH TO MOVE THE SUDSY PRODUCT OFF THE SHELF THANKS IN LARGE PART TO THE QUIRKY ADVERTISING OF THE BUD BOWL IN COMMERCIALS DURING THE SUPER BOWL LONGNECK BOTTLES OF THE BREW COME TO LIFE AND COMPETE IN A SUPER BOWL OF THEIR OWN ANNOYING PERHAPS EFFECTIVE CERTAINLY BEER SALES HAVE JUMPED 16 FOR THE MONTH OF JANUARY SINCE THE BUD BOWL FIRST EMERGED FROM ITS HUDDLE IN 1989 NOW BUDWEISER IS HOPING TO EXTEND ITS OFFSEASON MARKETING BY LAUNCHING ITS FIRST PROMOTION AND AD BLITZ CONNECTED TO BASEBALL'S FALL CLASSIC THE WORLD SERIES NOT TO WORRY ANHEUSERBUSCH ISN'T GOING TO SUBJECT BASEBALL FANS THROUGHOUT THE LAND TO AN INFURIATING BUD SERIES WITH BATTLING BOTTLES INSTEAD WE'RE TAKING THE BUD BOWL FORMULA AND TURNING OCTOBER AND THE SERIES INTO A MAJOR MEDIA EVENT SAYS MICHAEL OWENS MARKETING DIRECTOR OF BUDWEISER WE WANT TO DRIVE CONSUMERS TO RETAIL STORES AND DRIVE THEM TO WATCH THE WORLD SERIES WE'VE BEEN LOOKING FOR SOMETHING TO BUILD AROUND THE SEASON ACCORDING TO BEVERAGE MARKETING CORP BEER SALES NOTICEABLY DECREASE ONCE THE LEAVES START TURNING AND THE TEMPERATURE GOES DOWN IN OCTOBER BUD NEEDED A GIMMICK TO REVIVE SALES OF THE NATION'S NO 1 BEER BRAND PREDICTABLY BUDWEISER DECLINES TO DISCLOSE WHAT IT WILL SPEND ON THE PROMOTIONAL EFFORT BUT IT WILL HAVE TWO COMMERCIALS IN EVERY GAME OF THE WORLD SERIES IN ADDITION TO SHOWING A CLASSIC PLAY FROM A PAST BASEBALL GAME LAST YEAR A 30SECOND AD WENT FOR BETWEEN 175000 AND 200000 BUDWEISER IS USING A WATCHANDWIN GAME INSTEAD OF BUD BOTTLES PLAYING HARDBALL CONSUMERS ARE LOOKING FOR INNOVATIVE PROMOTIONS AND UNIQUE IDEAS SAYS MR OWENS WE DIDN'T WANT TO REPLICATE THE BUD BOWL WE WANTED TO CHALLENGE OURSELVES GOOD THING TOO THERE IS EVIDENCE THAT THE AUDIENCE'S LOVE AFFAIR OF THE BUD BOWL MAY BE FADING ACCORDING TO VIDEO STORYBOARD TESTS WHICH TRACKS AD POPULARITY THROUGH CONSUMER INTERVIEWS BUD BOWL FAILED TO FINISH IN THE TOP 10 IN THIS YEAR'S FIRST QUARTER SURVEY IN THE SAME PERIOD LAST YEAR IT WAS NO 8 FALLING FROM 1991'S FIRST QUARTER POSITION OF NO 4 IT'S BECOMING KIND OF A DRAG SAYS DAVID VADEHRA PRESIDENT OF VIDEO STORYBOARD ENOUGH ALREADY MR VADEHRA SAYS THE PLUNGE IN THE BUD BOWL POPULARITY SHOULD BE MORE WORRISOME TO BUDWEISER SINCE IT IS BROADCAST ONLY ONCE A YEAR AND OBVIOUSLY DOESN'T BECOME ANNOYING BY MERE REPETITION LIKE OTHER ADS SUCH AS THE DURACELL BUNNY SPOTS EVEN ONCE EVERY 12 MONTHS IS TOO MUCH FOR THE BUD BOWL HE SAYS BUDWEISER DISAGREES AND SAYS THE BUD BOWL IS AS SUCCESSFUL AS EVER THIS PAST JANUARY THE ST LOUISBASED BREWER RECEIVED THREE MILLION RESPONSES IN A CONTEST WHERE VIEWERS HAD TO WRITE DOWN THE SCORE OF THE BUD BOWL QUARTERBYQUARTER THE REWARD 1 MILLION CLEARLY BUDWEISER IS HOPING FOR THE SAME RESULTS IN THE WORLD SERIES WHICH IS SCHEDULED TO BE BROADCAST ON THE CBS NETWORK STARTING OCT 16 BEGINNING NEXT MONTH DISPLAYS WILL APPEAR IN SUPERMARKETS AND CONVENIENCE STORES WITH GAME CARDS DURING THE MIDDLE OF THE SIXTH INNING IN EACH GAME OF THE BESTOFSEVEN SERIES A SOCALLED CLASSIC PLAY FROM A PAST BASEBALL GAME WILL BE SHOWN AT THIS POINT VIEWERS WILL BE INSTRUCTED TO WRITE DOWN THE PLAY WITH THE POSSIBILITY OF WINNING 100000 THE WATCHANDWIN CONTEST WILL BE BOLSTERED BY A MAJOR ADVERTISING CAMPAIGN FROM D'ARCY MASIUS BENTON & BOWLES THAT WILL BEGIN NEXT MONTH THE SOCALLED HYPE SPOTS WILL ENCOURAGE INDIVIDUALS TO RUSH TO THE STORE AND SNAP UP A GAME CARD THE SPOTS WHICH ARE CURRENTLY IN PRODUCTION WILL BEGIN AIRING DURING THE END OF THE MAJOR LEAGUE BASEBALL SEASON AND AGAIN DURING THE LEAGUE CHAMPIONSHIP SERIES MR OWENS OF BUDWEISER SAYS THERE WILL BE NO CELEBRITIES IN THESE COMMERCIALS UNLIKE THE BUD BOWL SPOTS WHICH FEATURED FORMER NEW YORK JETS QUARTERBACK TURNED COMMERCIAL SPOKESMAN JOE NAMATH AND LA LAW STAR CORBIN BERNSEN INSTEAD THE SPOTS WILL FEATURE A MAN STEPPING UP TO THE PLATE AND HITTING A BALL WHICH SLAMS INTO THE SCOREBOARD THE BALL IS CAUGHT BY A FAN AND THROUGH COMPUTER IMAGES TURNS INTO CASH THE BREWER REQUESTED THE CONTEST SPOT TO RUN IN THE MIDDLE OF THE SIXTH INNING SAYS MR OWENS BECAUSE IT'S NOT TOO LATE IN THE GAME AND IT'S A NATURAL BREAK BUDWEISER WON'T HAVE AN EXCLUSIVE ON BEER ADVERTISING DURING THE WORLD SERIES BUT ITS EXECUTIVES HARDLY CARE MR OWENS PROMISES SOMEWHAT OMINOUSLY YOU WON'T BE ABLE TO GO INTO A SUPERMARKET OR DELI WITHOUT BUMPING INTO ONE OF OUR DISPLAYS GREAT JUST BE GRATEFUL THE BUD BOWL CONCEPT IS CONFINED TO ONE GAME ONCE A YEAR IN ANOTHER ANHEUSERBUSCH MANEUVER THE BREWER SAID YESTERDAY IT WOULD INTRODUCE A SOCALLED ICE BEER ICE DRAFT UNDER ITS BUDWEISER BRAND BEGINNING OCT 4 ADVERTISING WILL BE DONE BY OMNICOM GROUP'S DDB NEEDHAM IN CHICAGO WHICH ALSO HANDLES BUD LIGHT BUD DRY BUSCH AND BUSCH LIGHT THE BEER WHICH BUDWEISER SAYS IS BREWED AT A COLDER TEMPERATURE TO CREATE ICE CRYSTALS WILL BE INTRODUCED IN 13 WESTERN STATES INITIALLY INCLUDING CALIFORNIA NEW MEXICO AND OREGON WITH NATIONAL DISTRIBUTION TO FOLLOW ICE DRAFT WILL GO HEADTOHEAD WITH MOLSON ICE WHICH PHILIP MORRIS'S MILLER BREWING IS TEST MARKETING UNDER THE MOLSON ICE LABEL IN GEORGIA AND MICHIGAN MATTEL INC EXECUTIVES SAID IT WAS TOO SOON TO TELL WHETHER MATTEL'S ACQUISITION OF FISHERPRICE INC WOULD AFFECT FISHERPRICE'S AGENCY OF 24 YEARS WARING & LAROSA NEW YORK FISHERPRICE BILLS AN ESTIMATED 40 MILLION ANNUALLY WE'LL BE ANALYZING THE ORGANIZATION A MATTEL SPOKESWOMAN SAID OF THE EAST AURORA NY TOY COMPANY IT'S PREMATURE TO SAY WHAT OUR PLANS ARE THIS YEAR MATTEL SAID PUBLICLY THAT IT WAS LOOKING FOR A THIRD SHOP TO HANDLE ADVERTISING FOR NEW PRODUCTS SUCH AS DEVELOPMENTAL SPORTS AND ARTS AND CRAFTS PLAYTHINGS THAT SEARCH WHICH MATTEL PUT ON HOLD SOME TIME AGO WAS UNRELATED TO THE PURCHASE OF FISHERPRICE SHE SAID SAUL WARING AGENCY VICE CHAIRMAN AND COCHIEF EXECUTIVE OFFICER SAID HE DIDN'T EXPECT MATTEL TO MOVE THE FISHERPRICE ACCOUNT FROM HIS AGENCY WHICH BILLS ABOUT 85 MILLION ANNUALLY WE LIVED THROUGH THE SPINOFF FROM QUAKER AND WE HAVE EVERY CONFIDENCE WE'LL LIVE THROUGH THIS HE SAID WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES HIRED THE COPYWRITER AND ART DIRECTOR TEAM OF TY MONTAGUE AND MIKE FAZENDE AS EXECUTIVE VICE PRESIDENTS AND GROUP CREATIVE DIRECTORS ON SCALI'S BIG MERCEDESBENZ ACCOUNT MR MONTAGUE 30 YEARS OLD WAS PREVIOUSLY A VICE PRESIDENT AND ASSOCIATE CREATIVE DIRECTOR AT CHIAT/DAY NEW YORK MR FAZENDE 36 WAS AN ASSOCIATE CREATIVE DIRECTOR AT OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO 9308200055 930820 BUSINESS BRIEF AETNA LIFE & CASUALTY CO PAYMENT OF 52 MILLION SET TO SETTLE KICKBACK CHARGES AETNA LIFE & CASUALTY CO AGREED IN BOSTON TO PAY 52 MILLION IN FINES AND RESTITUTION TO SETTLE CHARGES THAT IT MADE UNDISCLOSED KICKBACKS TO PUBLIC OFFICIALS WHO GUIDED STATE PENSION MONEY TO AETNA FOR MANAGEMENT THE AGREEMENT IN WHICH AETNA NEITHER ADMITTED NOR DENIED WRONGDOING SETTLED CIVIL ACTIONS BY THE US ATTORNEY'S OFFICE THE SECURITIES AND EXCHANGE COMMISSION AND THE MASSACHUSETTS ATTORNEY GENERAL THE 52 MILLION IS IN ADDITION TO 95 MILLION PAID TO VARIOUS MASSACHUSETTS AND RHODE ISLAND PUBLIC EMPLOYEE RETIREMENT FUNDS BY AETNA AND TWO SUBSIDIARIES A COMPANY SPOKESMAN SAID HE EXPECTED NO MATERIAL AFFECT ON EARNINGS AS A RESULT OF THE LATEST SETTLEMENT HE SAID THE COMPANY HAS FULLY COOPERATED WITH THE INQUIRIES AND CALLED THE MATTER A SINGLE ISOLATED INCIDENT AETNA AND LAW ENFORCEMENT OFFICIALS SAID THE SETTLEMENT ENDS AETNA'S INVOLVEMENT IN THE CASE 9308200054 930820 BUSINESS BRIEF LORAL CORP MCDONNELL DOUGLAS AWARDS CONTRACTS FOR 1335 MILLION LORAL CORP NEW YORK SAID ITS LORAL AERONUTRONIC DIVISION RECEIVED TWO CONTRACTS TOTALING 1335 MILLION FROM MCDONNELL DOUGLAS CORP'S MCDONNELL DOUGLAS AEROSPACE FOR NITE HAWK FORWARDLOOKING INFRARED TARGETING PODS FOR THE F/A18 AIRCRAFT THE LARGER CONTRACT VALUED AT 112 MILLION CALLS FOR LORAL A HIGHTECHNOLOGY DEFENSE ELECTRONICS COMPANY TO PRODUCE 40 NITE HAWK PODS THAT WILL PROVIDE THE F/A18 AIRCRAFT WITH THE AUTONOMOUS CAPABILITY FOR PRECISION TARGETING AND DELIVERY OF LASERGUIDED MUNITIONS DURING DAY AND NIGHT ATTACK MISSIONS THE OTHER AWARD IS A 215 MILLION ENGINEERING AND MANUFACTURING DEVELOPMENT CONTRACT FOR FIVE NITE HAWK POD AFTSECTION SUBASSEMBLIES FOR THE F/A18 E/F HORNET UNDER THIS CONTRACT LORAL WILL PERFORM PODTOAIRCRAFT STRUCTURAL INTERFACE CHANGES TO ACCOMMODATE THE NITE HAWK TO THE NEXTGENERATION NAVY FIGHTER AIRCRAFT 9308200053 930820 PROFITS POSTED BY 3 BIG FIRMS IN HONG KONG HUTCHISON CHEUNG KONG AND HANG SENG BANK DRAW MIXED REVIEWS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THREE OF HONG KONG'S BIGGEST COMPANIES DELIVERED MIXED EARNINGS REPORTS THAT ARE LIKELY TO DISCOURAGE INVESTORS IN HONG KONG'S STOCK MARKET HANG SENG BANK LTD POSTED WEAKERTHANEXPECTED PROFIT GROWTH FOR THE FIRST HALF RAISING CONCERNS THAT ITS PARENT HONGKONG & SHANGHAI BANKING CORP WILL DELIVER A SIMILAR DISAPPOINTMENT WHEN IT REPORTS INTERIM RESULTS NEXT WEEK HOWEVER LI KASHING'S GROUP CHEUNG KONG HOLDINGS LTD AND HUTCHISON WHAMPOA LTD TOOK THE EDGE OFF THE HANG SENG BANK NEWS WITH FAT PROFIT REPORTS AND ENCOURAGING OUTLOOKS THE EARNINGS REPORTS CAME AFTER FOUR DAYS OF RECORDBREAKING GAINS IN THE COLONY'S STOCK MARKET WHICH HAS DEFIED FORECASTS THAT CHINA'S EFFORTS TO COOL ITS ECONOMY WILL DAMP GROWTH IN HONG KONG THAT RALLY MAY NOW BE OVER MARKET WATCHERS SAY BUT NOT BECAUSE OF ANY NEWS FROM NORTH OF THE BORDER HANG SENG BANK WILL CERTAINLY DISAPPOINT THE MARKET SAYS RAVI NARAIN DIRECTOR OF RESEARCH AT PEREGRINE BROKERAGE LTD THE STOCKS OF BOTH HONGKONG BANK AND HANG SENG BANK FELL SHARPLY IN LONDON IN RESPONSE TO THE REPORT AND BOTH ARE EXPECTED TO OPEN LOWER ON THE HONG KONG STOCK EXCHANGE TODAY HANG SENG SAID ITS EARNINGS GREW JUST 175 IN THE FIRST HALF WELL BELOW WIDESPREAD MARKET EXPECTATIONS FOR GROWTH OF 20 OR MORE IN THE FIRST SIX MONTHS THE BANK EARNED HK275 BILLION US3548 MILLION OR HK142 A SHARE UP FROM HK234 BILLION OR HK121 A SHARE A YEAR EARLIER OPERATING EARNINGS GREW EVEN LESS BECAUSE HK2589 MILLION OF THE HK4088 MILLION INCREASE CAME FROM THE SALE OF WING ON BANK HANG SENG BANK WAS TIGHTLIPPED ABOUT THE DISAPPOINTMENT BUT THE FINANCIAL COMMUNITY WAS QUICK TO SPECULATE THAT IT HAD MADE PROVISIONS FOR MORE OF ITS LOANS TO OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN REAL ESTATE CONCERN IF SO HONGKONG BANK MIGHT FOLLOW WITH AN EVEN BIGGER PROVISION OF ITS OWN ANALYSTS SAY LAST YEAR A DISAPPOINTING EARNINGS REPORT FROM HANG SENG BANK FORESHADOWED HONGKONG BANK'S US390 MILLION PROVISION WHICH REPRESENTED ABOUT 60 OF THE BANK'S EXPOSURE TO OLYMPIA & YORK HANG SENG BANK'S HALFYEAR RESULTS LAST YEAR ALSO INCLUDED A PROVISION OF ABOUT US60 MILLION AGAINST ITS US100 MILLION EXPOSURE TO THE REAL ESTATE COMPANY BUT THE PROVISION WASN'T DETAILED IN THE RESULTS WHICH TRADITIONALLY PRECEDE HONGKONG BANK'S INTERIM REPORT ANALYSTS SAY ANOTHER PLAUSIBLE EXPLANATION FOR HANG SENG BANK'S DISAPPOINTING EARNINGS GROWTH COULD BE A SLOWDOWN IN THE DOMESTIC BANKING BUSINESS SOMETHING THAT WOULD ALSO BE REFLECTED IN HONGKONG BANK'S IMPENDING RESULTS MORTGAGE LENDING IN HONG KONG DROPPED SHARPLY LATE LAST YEAR AMID GROWING TENSIONS BETWEEN CHINA AND BRITAIN AND DIDN'T PICK UP AGAIN UNTIL THE SECOND QUARTER OF THIS YEAR IN FACT HANG SENG BANK'S ASSETS GREW ONLY 22 IN THE LATEST PERIOD THE BANK ATTRIBUTED THE SLOW ASSET GROWTH TO ITS DECISION NOT TO COMPETE AGGRESSIVELY FOR DEPOSIT FUNDS IN THE FIRST HALF OF THE YEAR MR LI'S GROUP MEANWHILE DIDN'T DISAPPOINT ANYONE CHEUNG KONG'S AFTERTAX PROFIT IN THE FIRST HALF VAULTED 94 TO HK453 BILLION US5845 MILLION OR HK206 A SHARE FROM HK233 BILLION OR HK106 A SHARE A YEAR AGO THE LATEST PERIOD INCLUDES A HK708 MILLION GAIN FROM TWO SERIES OF WARRANTS ISSUED BY CHEUNG KONG LAST YEAR THE WARRANTS FOR THE PURCHASE OF HUTCHISON SHARES WERE EITHER EXERCISED OR EXPIRED IN MARCH AND MAY OF THIS YEAR FIRSTHALF EARNINGS AT HUTCHISON WHICH IS 42OWNED BY CHEUNG KONG TOTALED HK252 BILLION 3252 MILLION OR 74 HONG KONG CENTS A SHARE AGAINST A LOSS IN THE YEAREARLIER PERIOD HUTCHISON LOST HK78 MILLION OR THREE HONG KONGCENTS A SHARE IN LAST YEAR'S FIRST HALF BECAUSE OF MASSIVE WRITEOFFS FOR 49OWNED HUSKY OIL LTD HUSKY TURNED A PROFIT IN THE FIRST SIX MONTHS OF THIS YEAR SEPARATELY MR LI SAID THAT HUTCHISON WOULD POST A SECONDHALF GAIN OF ABOUT HK15 BILLION FROM LAST MONTH'S SALE TO NEWS CORP OF A CONTROLLING STAKE IN STARTV A SATELLITE BROADCASTING COMPANY HALFOWNED BY HUTCHISON AND HALF BY THE LI FAMILY HUTCHISON RETAINS AN 18 INTEREST IN STARTV MR NARAIN EXPECTS HUTCHISON TO EARN HK615 BILLION FOR ALL OF 1993 BEFORE THE HK15 BILLION GAIN FROM THE STARTV SALE FOR 1994 HE EXPECTS HUTCHISON TO EARN HK728 BILLION IF THERE'S A SALE OF UK TELECOM THAT'S JUST A BONUS SAYS MR NARAIN INVESTORS' EXPECTATIONS THAT CHEUNG KONG AND HUTCHISON WOULD REPORT HIGH INTERIM EARNINGS PUSHED THE HANG SENG INDEX UP 4429 POINTS THURSDAY TO 760526 ITS FIRST CLOSE ABOVE 7600 HOWEVER WEAKNESS IN THE STOCKS OF HONGKONG BANK AND HANG SENG BANK ARE EXPECTED TO DOMINATE THE MARKET TODAY HONGKONG BANK IS THE COLONY'S BIGGEST COMPANY ACCOUNTING FOR ABOUT 15 OF THE HANG SENG INDEX HANG SENG BANK ACCOUNTS FOR ABOUT 9 OF THE BLUECHIP INDEX CHEUNG KONG AND HUTCHISON TOGETHER ACCOUNT FOR A LITTLE MORE THAN 10 OF THE INDEX 9308200052 930820 WORLD MARKETS TOKYO SHARES DROP AS ECONOMIC MEETING YIELDS LITTLE NEWS LONDON STOCKS FALL TO PROFITTAKING A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS WEAKENED THURSDAY ON DISAPPOINTMENT THAT A SPECIAL JAPANESE ECONOMICPOLICY MEETING FAILED TO PRODUCE ANY FRESH STIMULUS MEASURES IN LONDON PRICES RETREATED ON PROFITTAKING WHILE THE FRANKFURT MARKET'S MAIN INDEX ROSE TO A THREEYEAR HIGH DESPITE A MIXED FINISH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11100 DOWN 177 REFLECTING DECREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A RISE IN AMERICAN MARKETS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12215 UP 384 OR 33 WITH BAKER HUGHES OF THE US POSTING A 52 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 9692 DOWN 477 OR 47 WITH SANFORD OF NEW ZEALAND SLIDING 18 IN LOCAL CURRENCY A SPECIAL MEETING OF JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S ECONOMIC MINISTERS FAILED TO EXCITE THE MARKET THE NIKKEI STARTED TO SLIDE EARLY IN THE AFTERNOON THURSDAY AFTER PLAYERS INTERPRETED THE MEETING AND REMARKS BY OTHER OFFICIALS AFTER THE MEETING AS LARGELY NEUTRAL MANY IN THE MARKET HAD HOPED FOR BETTER DETAILS ON HOW THE GOVERNMENT MIGHT FIND WAYS TO STIMULATE THE ECONOMY AND CURB THE PACE OF THE JAPANESE YEN'S RISE BUT THE GOVERNMENT OFFERED LITTLE FRESH ACTION ON THE ECONOMY INSTEAD IT APPEARED THE GOVERNMENT'S EFFORTS WILL FOCUS ON FULLY IMPLEMENTING THE FISCAL STIMULUS PACKAGE ANNOUNCED IN APRIL AND EASING REGULATIONS AS WELL AS OTHER STEPS TO SPREAD THE BENEFITS OF THE YEN'S RECENT APPRECIATION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX DROPPED 81 POINTS TO 30655 THE FT 30 INDEX LOST 116 TO 23945 VOLUME WAS 8369 MILLION SHARES COMPARED WITH 8871 MILLION THE PREVIOUS DAY THE MARKET ROSE EARLY REACHING ITS INTRADAY HIGH SHORTLY AFTER OPENING BUT ENSUING PROFITTAKING PULLED THE FTSE 100 DOWN AS LOW AS 30548 AT MIDDAY THE INDEX HELD THOSE LEVELS UNTIL RALLYING NEAR THE CLOSE BUOYED BY A FIRMING MARKET ON WALL STREET SHARES OF SEVERAL MAJOR PROPERTY COMPANIES FELL TO PROFITTAKING THE SECTOR HAS BEEN ONE OF THE BIGGEST GAINERS AMID SPECULATION ABOUT INTERESTRATE CUTS FOOD RETAILERS AND MANUFACTURERS CONTINUED TO BENEFIT FROM A GENERAL SHIFTING OF FUNDS INTO LAGGING GROWTH STOCKS FROM HIGHPRICED CYCLICAL SECTORS IN FRANKFURT PRICES FINISHED MIXED BUT THE MARKET'S BENCHMARK INDICATOR SET ANOTHER THREEYEAR HIGH THE DAX 30STOCK INDEX OF BLUECHIPS WHICH LEAPT 2555 POINTS WEDNESDAY ROSE 326 TO 193898 AN EARLYMORNING RALLY RAN OUT OF STEAM IN THE ABSENCE OF BUY ORDERS OTHER EUROPEAN MARKETS WERE MIXED WITH PROFITTAKING ERODING GAINS IN THE WAKE OF YESTERDAY'S SURGE ACROSS EUROPE IN PARIS STOCKS FELL 1 ERASING MOST OF THE PREVIOUS DAY'S STRONG GAINS WITHOUT SIGNIFICANT MARKETMOVING NEWS TRADERS FOUND IT DIFFICULT TO SUSTAIN THE MOMENTUM AS THE BOURSE APPROACHED RECORD HIGHS THE MARKET HAD OPENED STRONG IN REACTION TO BANK OF FRANCE'S SECOND CUT THIS WEEK IN THE 24HOUR LENDING RATE TO 825 FROM 875 IN AMSTERDAM PRICES CLOSED SLIGHTLY LOWER AS INVESTORS TOOK PROFITS FROM RECENT GAINS AHEAD OF TODAY'S EXPIRATION OF OPTIONS CONTRACTS FOOD AND BEVERAGE ISSUES CLOSED HIGHER AS DID PUBLISHING STOCKS IN MILAN STOCKS FELL ON PROFITTAKING AFTER A RALLY LED BY TELECOMMUNICATIONS STOCKS FIZZLED IN MADRID EQUITIES EDGED HIGHER ON SHARP GAINS IN A HANDFUL OF BLUECHIP STOCKS SHARES GOT OFF TO A ROARING START EASED AROUND MIDMORNING ON PROFITTAKING BUT RECOVERED GROUND IN THE AFTERNOON IN STOCKHOLM SHARES FINISHED LOWER IN A WIDELY FLUCTUATING MARKET ENDING A LONG WINNING STREAK THE DECLINE WAS LED BY BANK AND INSURANCE SHARES ALSO A STRONG HALFYEAR EARNINGS REPORT FROM TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON LED TO SOME PROFITTAKING ASIAN AND PACIFIC MARKETS ALSO WERE MIXED IN SYDNEY PRICES SOARED ACROSS THE BOARD TO A NEW SIXYEAR HIGH ON SOLID GAINS IN MEDIA AND BANK ISSUES RISES IN US AND BRITISH STOCKS A STRONGER GOLD PRICE AND BETTERTHANEXPECTED RESULTS AT SOME COMPANIES COMBINED TO LIFT STOCKS IN HONG KONG STOCKS CLIMBED FOR THE FIFTH STRAIGHT SESSION TO ANOTHER RECORD HIGH WITH THE BLUECHIP HANG SENG INDEX FINISHING ABOVE 7600 FOR THE FIRST TIME THE MARKET HAS BEEN BULLISH IN ANTICIPATION OF EARNINGS ANNOUNCEMENTS FROM A FEW BLUECHIP COMPANIES HOWEVER AFTER THE MARKET CLOSED HANG SENG BANK POSTED WEAKERTHANEXPECTED PROFIT GROWTH FOR THE FIRST HALF OF THE YEAR RAISING CONCERNS THAT ITS PARENT HONGKONG & SHANGHAI BANKING WILL DELIVER A SIMILAR DISAPPOINTMENT WHEN IT REPORTS INTERIM RESULTS NEXT WEEK IN TAIPEI SHARES ENDED SLIGHTLY LOWER IN THIN TRADING DESPITE EASING OF POLITICAL TENSIONS IN THE RULING NATIONALIST PARTY'S 14TH PARTY CONGRESS WHICH RUNS THROUGH SUNDAY IN SEOUL PRICES SURGED 33 ON RUMORS RELATED TO SOUTH KOREAN CURRENCY REFORM AND IMPROVED RELATIONS WITH NORTH KOREA LARGE MANUFACTURING BANK AND SECURITIES ISSUES DOMINATED THE DAY'S BUYING CONSTRUCTION ISSUES WERE AMONG THE BIGGEST GAINERS ON RUMORS THAT THE GOVERNMENT WOULD ANNOUNCE MEASURES TO ENHANCE RELATIONS BETWEEN THE KOREAS CASH HAS BEEN FLOWING INTO THE STOCK MARKET AS THE GOVERNMENT TIGHTENS REGULATIONS AGAINST REAL ESTATE SPECULATION IN MANILA SHARES SLIPPED IN THIN TRADING ON PROFITTAKING IN SOME BLUE CHIP SHARES IN WELLINGTON SHARES JUMPED 32 IN EXTREMELY BUSY TRADING LED BY CONTINUING STRONG SUPPORT FOR FORESTRY AND RESOURCES CONCERN FLETCHER CHALLENGE WHICH REPORTED STRONG EARNINGS ON WEDNESDAY AMONG CORPORATE DEVELOPMENTS IN FRANKFURT MANNESMANN DROPPED 83 MARKS OR 24 TO 33320 MARKS 19839 THE INDUSTRIAL GROUP HAD A NET LOSS OF 467 BILLION MARKS 27806 BILLION IN THE FIRST HALF COMPARED WITH NET INCOME OF 15 MILLION MARKS A YEAR EARLIER 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 MANNESMANN AG A GERMAN INDUSTRIAL CONCERN HAD A NET LOSS OF 467 MILLION MARKS 2781 MILLION IN THE FIRST HALF OF 1993 IN FRIDAY'S WORLD MARKETS COLUMN THE AMOUNTS WERE MISSTATED AS BILLIONS 9308200051 930820 REVIEW & OUTLOOK EDITORIAL JUVENILE INJUSTICE THE MURDER OF JAMES JORDAN FATHER OF BASKETBALL SUPERSTAR MICHAEL JORDAN OFFERS AN AWFULLY CLEAR PICTURE OF WHAT'S WRONG WITH THIS COUNTRY'S SYSTEM OF SOCALLED JUVENILE JUSTICE ACCORDING TO NORTH CAROLINA POLICE MR JORDAN WAS KILLED BY TWO 18YEAROLDS WHO CAME UPON HIS LEXUS PARKED OFF A HIGHWAY EARLY IN THE MORNING OF JULY 23 POLICE BELIEVE THEY SHOT MR JORDAN WHO WAS ASLEEP IN THE FRONT SEAT DROVE AWAY IN THE CAR AND DUMPED HIS BODY IN A CREEK WHERE IT WAS FOUND DOWNSTREAM IN SOUTH CAROLINA SOME DAYS LATER THE YOUTHS WERE CAUGHT AFTER POLICE TRACED CALLS THEY MADE ON THE CAR PHONE TO A 900 PORN NUMBER NEEDLESS TO SAY THIS ISN'T THE FIRST TIME EITHER DANIEL GREEN OR LARRY DEMERY HAVE BEEN ARRESTED BOTH HAVE A VIOLENT HISTORY DEMERY HAS FACED 14 CHARGES SINCE SEPTEMBER 1991 A MONTH AFTER HE TURNED 16 THE AGE YOUTHS CAN BE TRIED AS ADULTS IN NORTH CAROLINA HIS RECORD INCLUDES A YEAR'S PROBATION FOR BREAKING AND ENTERING OTHER CHARGES AMONG THEM ARMED ROBBERY AND ASSAULT WITH A DEADLY WEAPON FORGERY BREAKING AND ENTERING LARCENY ARE STILL PENDING IN DECEMBER HE WAS INDICTED FOR ALLEGEDLY ATTACKING A 61YEAROLD WOMAN WITH A CINDER BLOCK AND STEALING HER CASH AND VALUABLES GREEN'S BACKGROUND IS EQUALLY UNSAVORY HE WAS PAROLED TWO MONTHS AGO AFTER SERVING TWO YEARS OF A SIXYEAR SENTENCE FOR ATTACKING A FELLOW STUDENT WITH AN AX HE WAS ONLY 15 AT THE TIME WHICH MEANT THAT A JUDGE MUST HAVE THOUGHT HE WAS A BAD ENOUGH CASE TO TRY AS AN ADULT A LOCAL NEWSPAPER REPORTS THAT WHEN HE WAS EVEN YOUNGER HE WAS SUSPENDED FROM JUNIOR HIGH SCHOOL FOR ASSAULTING THE PRINCIPAL DO DEMERY'S AND GREEN'S CRIMINAL RECORDS GO BACK FARTHER AS SEEMS LIKELY WE'LL NEVER KNOW SINCE NORTH CAROLINA LIKE VIRTUALLY EVERY OTHER STATE SEALS JUVENILE RECORDS IT'S WELLESTABLISHED THAT MOST VIOLENT CRIMES ARE COMMITTED BY REPEAT OFFENDERS RICHARD TOWNSEND THE ROBESON COUNTY DISTRICT ATTORNEY WHO IS PROSECUTING DEMERY AND GREEN SOUNDS LIKE MOST DAS WHEN HE SAYS MOST OF OUR BUSINESS IS REPEAT BUSINESS UNDER THE LAW HE DOESN'T KNOW WHETHER DEMERY AND GREEN HAVE JUVENILE RECORDS BUT HE EXPRESSES GREAT FRUSTRATION ABOUT THE JUVENILE JUSTICE SYSTEM IN GENERAL YOU GET TO KNOW THESE KIDS ON FIRSTNAME BASIS HE SAYS THEY AGE OUT JUVENILE COURT AND COME INTO ADULT COURT THEN THEY GO TO PRISON AND ARE LET OUT AND ARE RIGHT BACK OUT ON THE STREET COMMITTING THE SAME CRIMES WHEN THE CURRENT SYSTEM OF JUVENILE JUSTICE WAS SET UP IN THE 1960S JUVENILE OFFENSES WERE LIKELY TO BE SHOPLIFTING OR JOYRIDING NOT MURDER OR ASSAULT OR RAPE ITS COMMENDABLE AIM WAS TO GIVE IMMATURE OFFENDERS A CHANCE TO REFORM THE TRAGEDY OF THE SYSTEM HOWEVER IS THAT IT HAS INSTEAD TAUGHT JUVENILES THAT THEY CAN GET AWAY WITH VIOLENCE TODAY PROSECUTORS RARELY BOTHER TO CHARGE JUVENILE SHOPLIFTERS SO BUSY ARE THEY WITH THE MURDERERS AND THE MUGGERS YET UNDER THE NOWENTRENCHED SYSTEM YOUNG OFFENDERS NO MATTER HOW HEINOUS THE CRIME SELDOM GET MORE THAN PROBATION OR A SENTENCE OF A YEAR OR TWO NORTH CAROLINA LAW FOR EXAMPLE MANDATES THAT A JUVENILE MUST BE RELEASED FROM JAIL WHEN HE TURNS 18 NO MATTER WHAT HE DID AND BECAUSE JUVENILE RECORDS ARE SECRET REPEAT JUVENILE OFFENDERS AND JUVENILES WHO REACH ADULTHOOD WITH A CRIMINAL PAST CAN APPEAR BEFORE A JUDGE AS FIRSTTIME OFFENDERS WHAT ALL THIS MEANS IS THAT IT'S NOT UNTIL HE'S WELL ENTRENCHED IN A LIFE OF CRIME THAT A VIOLENCEPRONE YOUTH FIRST GETS THE MESSAGE THAT CRIME DOESN'T PAY THIS IS A LESSON THAT NEEDS TO BE LEARNED LONG BEFORE A KID REACHES THE AGE OF 16 OR 17 OR 18 CRIMINOLOGIST JAMES Q WILSON BELIEVES THAT EVEN 12 IS TOO LATE A CHILD'S MORAL SENSE NEEDS TO BE DEVELOPED BEFORE THE CONFUSING ONSLAUGHT OF PUBERTY HOW TO DO THAT IS THE DIFFICULT QUESTION THAT NEEDS TO BE ADDRESSED IF WE WANT TO CHECK THE GROWING VIOLENCE AMONG THE YOUNG THE MAIN CHALLENGE IS TO CREATE DISCIPLINED NURTURING ENVIRONMENTS FOR VIOLENCEPRONE BOYS MANY OF WHOM COME FROM POOR FATHERLESS FAMILIES IT WILL REQUIRE A RETHINKING NOT ONLY OF THE JUVENILE JUSTICE SYSTEM WHICH NEEDS TO BE SWIFTER AND SURER AND TOUGHER BUT ALSO OF THE FOSTERCARE AND ADOPTION SYSTEMS WHICH CAN BOUNCE PROBLEM CHILDREN IN AND OUT OF FAMILIES AND INSTITUTIONS FOR YEARS PUBLIC BOARDING SCHOOLS FOR BOYS MIGHT HELP AS MIGHT A MODERN VERSION OF THE REFORM SCHOOL SO FAR THERE'S A LOT OF TALK FROM PRESIDENT CLINTON AND ATTORNEY GENERAL RENO ABOUT GRAPPLING WITH THE ROOT CAUSES OF CRIME THROUGH MORE SOCIAL SPENDING YET WHILE WE'VE BEEN CHASING A ROOTCAUSES STRATEGY SINCE THE '60S THE NUMBER OF JUVENILE ARRESTS FOR VIOLENT CRIME TRIPLED BETWEEN 1965 AND 1990 LARRY DEMERY AND DANIEL GREEN WERE LED AWAY IN LEG IRONS AT THEIR ARRAIGNMENT THIS WEEK AFTER BEING CHARGED WITH THE FIRSTDEGREE MURDER OF JAMES JORDAN ARMED ROBBERY AND CONSPIRACY MICHAEL JORDAN'S FAMILY IS NOW EXPERIENCING THE DEEP GRIEF VISITED ON INNUMERABLE FAMILIES BY JUVENILE THUGS FOR THEM THE WHEEL OF JUSTICE IS CLEARLY BROKEN AND OUGHT TO BE FIXED 9308200050 930820 BUSINESS BRIEF AUTODESK INC NET IN 2ND PERIOD ROSE 56 AIDED BY STRONG WORLD SALES AUTODESK INC CITING STRONG WORLD SALES OF ITS FLAGSHIP DRAFTING PROGRAM REPORTED A 56 INCREASE IN FISCAL SECONDQUARTER NET INCOME THE RESULTS WERE ANNOUNCED AFTER THE CLOSE OF STOCK MARKET TRADING IN OVERTHECOUNTER TRADING YESTERDAY AUTODESK FELL 1625 OR 38 TO 41375 THE SAUSALITO CALIF SOFTWARE CONCERN SAID NET IN THE QUARTER ENDED JULY 31 WAS 165 MILLION OR 65 CENTS A SHARE COMPARED WITH 106 MILLION OR 43 CENTS A SHARE A YEAR AGO REVENUE GREW 21 TO 1036 MILLION FROM 855 MILLION THE RESULTS WERE IN LINE WITH EXPECTATIONS OF ANALYSTS WHOSE MEAN ESTIMATE OF PERSHARE PROFIT WAS 65 CENTS AS CALCULATED BY ZACKS INVESTMENT RESEARCH INC AUTODESK ATTRIBUTED ITS STRONG RESULTS TO GROWTH IN SALES OF AUTOCAD ITS DRAFTINGANDDESIGN PROGRAM REVENUE IN AUTODESK'S ASIA/PACIFIC AND AMERICAS REGIONS WAS PARTICULARLY STRONG 9308200049 930820 TECHNOLOGY & HEALTH MAXTOR ALLIED WITH HYUNDAI STOCK SURGES BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MAXTOR CORP BLOODIED BY PRICE WARS IN THE COMPUTER DISKDRIVE MARKET SAID IT AGREED TO SELL A 40 STAKE IN THE COMPANY TO SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO THE SAN JOSE CALIF DISKDRIVE MAKER SAID IT SIGNED A LETTER OF INTENT FOR HYUNDAI TO PAY 150 MILLION FOR 194 MILLION NEWLY ISSUED MAXTOR SHARES THE DEAL WORKS OUT TO 773 A SHARE A 44 PREMIUM OVER THE STOCK'S CLOSING PRICE WEDNESDAY THE PROPOSED SALE SPARKED A 26 RUNUP IN THE PRICE OF MAXTOR'S SHARES WHICH CLOSED AT 675 UP 1375 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AFTER SIX MONTHS OF BRUTAL PRICE WARS AMONG DISKDRIVE MAKERS WHICH SUPPLY THE DEVICES USED TO STORE DATA IN PERSONAL COMPUTERS A FINANCIALLY WEAKENED MAXTOR WAS LEFT WITH LITTLE CHOICE BUT TO SEEK A QUICK CASH INFUSION ANALYSTS SAID IT WAS A SALVATION MOVE FOR THEM SAID ANALYST STEVEN OSSAD OF COWEN & CO IT KEEPS PERHAPS THE WEAKEST PLAYER IN THE GAME MAXTOR POSTED NET LOSSES IN THE LAST TWO QUARTERS REPORTING A LOSS OF 722 MILLION IN ITS FISCAL FIRST QUARTER ENDED JUNE 28 A YEAR EARLIER IT HAD PROFIT OF 285 MILLION THE COMPANY IS EXPECTED TO POST NET LOSSES FOR SEVERAL MORE QUARTERS THIS MONTH ITS STOCK FELL TO AS LOW AS 4375 22 OF ITS HIGH OF 19625 IN DECEMBER WHEN THE INDUSTRY WAS ENJOYING FATTER PROFITS BECAUSE OF DISKDRIVE SHORTAGES BASED ON MAXTOR'S CONTINUING LOSSES EVEN IF INDUSTRY CONDITIONS DIDN'T GET ANY WORSE TWO TO FOUR QUARTERS FROM NOW THEY WOULDN'T HAVE BEEN ABLE TO MEET THEIR ONGOING CAPITAL REQUIREMENTS SAID ANALYST TODD KOFFMAN OF DEAN WITTER REYNOLDS UNDER THE AGREEMENT HYUNDAI WILL GET THE BOARD CHAIRMAN'S SEAT BUT ITS EXECUTIVES WON'T BE INVOLVED IN MAXTOR'S DAYTODAY OPERATIONS SAID LAWRENCE HOOTNICK MAXTOR'S CHIEF EXECUTIVE OFFICER THE COMPANIES ARE TRYING TO DEFINE AREAS OF POSSIBLE COOPERATION SUCH AS IN MARKETING MANUFACTURING AND TECHNOLOGY TRANSFER HE SAID THE CASH WHICH WILL BE USED AS WORKING CAPITAL WILL HELP MAXTOR KEEP UP ITS VITAL INVESTMENTS IN DEVELOPMENT OF NEW PRODUCTS MR HOOTNICK SAID MAXTOR HAD LOSSES EARLIER THIS YEAR IN PART BECAUSE OF PROBLEMS IN INTRODUCING NEW PRODUCTS TO REPLACE AN AGED PRODUCT LINE HE SAID AND A CASHPOOR MAXTOR COULDN'T WEATHER THE PROFITSLASHING PRICE WARS AS WELL AS DEEPERPOCKETED CALIFORNIA RIVALS SUCH AS PERIPHERALS INC OF SAN JOSE AND SEAGATE TECHNOLOGY INC OF SCOTTS VALLEY FOR HYUNDAI WHICH DOESN'T MAKE HARDDISK DRIVES THE DEAL COULD GIVE IT A LOWCOST PROVIDER OF DISK DRIVES FOR ITS PC BUSINESS AS WELL AS AN ADDITIONAL MARKETING FOOTHOLD IN THE US WE BELIEVE AN INVESTMENT IN MAXTOR IS A MAJOR STRATEGIC STEP IN DEVELOPING OUR GLOBAL TECHNOLOGICAL CAPABILITIES SAID CS PARK HYUNDAI SENIOR VICE PRESIDENT IN A STATEMENT UNDER THE AGREEMENT WHICH WOULD LEAVE MAXTOR WITH 49 MILLION SHARES OUTSTANDING HYUNDAI MAY NOT ACQUIRE MORE THAN 45 OF MAXTOR EXCEPT IN A TENDER FOR ALL SHARES OUTSTANDING THE DEAL WHICH MAXTOR EXPECTS TO CLOSE IN NOVEMBER IS SUBJECT TO APPROVAL OF THE US AND SOUTH KOREAN GOVERNMENTS AMONG OTHER CONDITIONS 9308200048 930820 MARKETING BRIEF NEW YORK TIMES CO ANTITRUST OFFICIALS APPROVE ACQUISITION OF GLOBE PARENT THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION APPROVED A PLANNED ACQUISITION BY NEW YORK TIMES CO OF THE PARENT OF THE BOSTON GLOBE FOR 107 BILLION IN CASH AND STOCK AFTER WHAT A DEPARTMENT SPOKESWOMAN CALLED AN EXTENSIVE INVESTIGATION ANTITRUST OFFICIALS CONCLUDED THAT THE COMBINATION OF TWO OF THE LARGER NEWSPAPERS IN THE NORTHEAST WOULDN'T SUBSTANTIALLY LESSEN COMPETITION FOR READERS OR ADVERTISERS FEDERAL OFFICIALS SAID THERE ISN'T A SIGNIFICANT OVERLAP BETWEEN THE TWO PAPERS' CIRCULATIONS AND THAT ADVERTISERS VIEW THEM AS SERVING SEPARATE MARKETS THE SPOKESWOMAN SAID THE GLOBE IS OWNED BY AFFILIATED PUBLICATIONS INC THE ACQUISITION WAS ANNOUNCED IN JUNE 9308200047 930820 TECHNOLOGY & HEALTH WANG SUIT ALLEGES PATENT VIOLATION BY MICROSOFT CORP BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WANG LABORATORIES INC ALLEGED PATENT INFRINGEMENT BY MICROSOFT CORP IN A LAWSUIT FILED IN FEDERAL COURT HERE WANG ALLEGES THAT MICROSOFT REDMOND WASH AND A SMALLER SOFTWARE MAKER WATERMARK SOFTWARE INC OF BURLINGTON MASS VIOLATED TWO WANG PATENTS AWARDED IN THE PAST YEAR IT WAS UNCLEAR WHAT SPECIFIC MICROSOFT OR WATERMARK PRODUCTS ARE ALLEGED TO HAVE INFRINGED ON WANG'S PATENTS ONE PATENT DESCRIBES OBJECT MANAGERS IN WHICH MODULAR SOFTWARE PROGRAMS OPERATE WITH CORRESPONDING STORED DATA THE OTHER ASSERTS RIGHTS TO A COMPOSITE PERSONAL COMPUTERBASED DOCUMENT SCANNER AND PROCESSOR RELATED TECHNOLOGIES ARE GAINING WIDESPREAD USE IN THE COMPUTER INDUSTRY A MICROSOFT ATTORNEY SAID THE COMPANY IS STILL STUDYING WANG'S CHARGES AND WOULDN'T COMMENT WATERMARK ALSO WOULDN'T COMMENT LAST NIGHT PENDING A REVIEW OF THE LAWSUIT BUT A SPOKESWOMAN NOTED THAT NO SPECIFIC WATERMARK PRODUCTS OR TECHNOLOGIES ARE CITED IN THE SUIT ONE PERSON FAMILIAR WITH CONTACTS BETWEEN THE COMPANIES SAID MICROSOFT AND WANG HAVE HAD PRELIMINARY TALKS THAT COULD LEAD TO A SETTLEMENT INVOLVING LICENSING OR PAYMENT BY MICROSOFT TO WANG A WANG SPOKESMAN DECLINED COMMENT THE LOWELL MASS COMPANY FILED THE SUIT JULY 30 BUT HAS ISSUED NO PUBLIC STATEMENTS WANG WHICH HAS SAID IT WILL EMERGE FROM BANKRUPTCY COURT PROTECTION THIS FALL OFTEN AND SUCCESSFULLY HAS SUED OTHER COMPUTER MAKERS OVER TECHNOLOGY PATENT INFRINGEMENTS THOUGH THE BREADTH OF THE PATENTS NOW AT ISSUE REMAIN UNTESTED IN COURT THE SUIT SAYS THAT MICROSOFT MAKES USES AND SELLS PRODUCTS WHICH UTILIZE INVENTIONS CLAIMED IN THE PATENTS AND THAT IT IS ACTIVELY INDUCING OTHERS INCLUDING WATERMARK TO VIOLATE THE PATENTS IT SEEKS TO ENJOIN THE TWO COMPANIES FROM SELLING THE ALLEGEDLY INFRINGING PRODUCTS AND ASKS FOR UNSPECIFIED TREBLE DAMAGES THE TITLES OF THE PATENTS CITED IN THE FOURPAGE FEDERAL COMPLAINT WERE INTEGRATION OF DATA BETWEEN TYPED OBJECTS BY MUTUAL DIRECT INVOCATION BETWEEN OBJECT MANAGERS CORRESPONDING TO OBJECT TYPES ISSUED APRIL 27 AND COMPOSITE DOCUMENT ACCESSING AND PROCESSING TERMINAL WITH GRAPHIC AND TEXT DATA BUFFERS ISSUED TO WANG BY THE PATENT OFFICE ON JULY 7 1992 SEPARATELY WANG SAID IT RECEIVED 40 MILLION IN INTERIM FINANCING FROM CONGRESS FINANCIAL CORP TO HELP IT EMERGE FROM BANKRUPTCYLAW PROTECTION FOLLOWING WANG'S EMERGENCE CONGRESS WOULD PROVIDE A PERMANENT LINE OF CREDIT OF AS MUCH AS 30 MILLION C HALL SWAIM THE ATTORNEY FOR WANG'S CREDITORS SAID THE AGREEMENT WHICH HAD BEEN EXPECTED OFFERED VERY ATTRACTIVE TERMS THAT WILL SATISFY WANG'S CAPITAL NEEDS CONGRESS FINANCIAL IS A SUBSIDIARY OF CORESTATES FINANCIAL CORP OF PHILADELPHIA WANG FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS LAST YEAR AFTER HUGE LOSSES AND DECLINING REVENUE IN A DRASTIC RESTRUCTURING THE COMPANY HAS SLASHED ITS WORK FORCE TO ABOUT 6000 FROM A 1988 PEAK OF 31500 AND HAS VIRTUALLY ABANDONED COMPUTER MANUFACTURING TO FOCUS ON SOFTWARE AND SERVICES 9308200046 930820 AT&T MCCAW DEAL COULD SPUR OTHERS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE PLANNED 126 BILLION MERGER OF MCCAW CELLULAR COMMUNICATIONS CO AND AMERICAN TELEPHONE & TELEGRAPH CO IS LIKELY TO SHOCK MORE TELEPHONE COMPANIES AND CABLE TV OPERATORS INTO DEALS AND ALLIANCES OF THEIR OWN THAT'S THE VIEW OF MANY WALL STREET INVESTMENT BANKERS WHO ARE BURNING UP THEIR PHONE LINES PITCHING IDEAS TO THEIR CLIENTS AS WELL AS ANALYSTS AND INVESTORS TRYING TO GUESS THE NEXT TAKEOVER TARGETS STEVEN RATTNER A GENERAL PARTNER AT LAZARD FRERES & CO WHO ADVISED MCCAW ON THE AT&T DEAL PREDICTS THERE WILL BE QUITE A NUMBER OF DEALS OF VARIOUS SHAPES AND SIZES A WHOLE SLEW OF DIFFERENT THINGS PEOPLE CAN AND WILL BE DOING TWO MONTHS AGO COMMUNICATIONS MEGADEALS HAD ALREADY FUELED A 29 INCREASE IN MERGER ACTIVITY OVER THE 1992 LEVEL AFTER PLANS WERE ANNOUNCED FOR BRITISH TELECOMMUNICATIONS PLC TO PAY 43 BILLION FOR 20 OF MCI COMMUNICATIONS AND FOR U S WEST INC TO PAY 25 BILLION FOR A PIECE OF TIME WARNER INC'S ENTERTAINMENT BUSINESS COUNTING AT&TMCCAW US MERGER ACTIVITY THROUGH AUG 18 IS UP 64 FROM LAST YEAR'S LEVEL ACCORDING TO SECURITIES DATA CO THIS YEAR'S VOLUME OF 1328 BILLION COUNTING MINORITY STAKES IS THE BUSIEST SINCE THE RECORD YEAR OF 1989 WHEN 1993 BILLION WERE ANNOUNCED THROUGH AUG 18 SOME COMPETITIVE RESPONSES HAVE BEEN PERCOLATING SINCE AT&T ANNOUNCED PLANS TO BUY 33 OF MCCAW IN NOVEMBER BUT AT&T'S DECISION TO BUY THE ENTIRE COMPANY WAS A MAJOR WAKEUP CALL FOR REGIONAL PHONE COMPANIES THAT MIGHT PREVIOUSLY HAVE BEEN CONTENT MERELY TO DEFEND THEIR OWN TERRITORIES SAYS SALVATORE MUOIO AN ANALYST AT GABELLI & CO IN RYE NY WHAT COULD HAPPEN HERE ARE SOME OF THE TYPES OF DEALS THAT MAY HAPPEN NEXT THE SEVEN REGIONAL BELL COMPANIES ARE NOW LIKELIER TO TEAM UP WITH CABLE TV OPERATORS AS SOUTHWESTERN BELL CORP DID BY AGREEING TO BUY HAUSER COMMUNICATIONS INC BOTH BELL ATLANTIC CORP AND BELLSOUTH CORP ARE SAID TO BE DISCUSSING REASONABLY SIGNIFICANT CABLE DEALS MOST OF THE BABY BELLS ARE LOOKING AMERITECH IS SAID TO HAVE TALKED WITH VIACOM INTERNATIONAL INC BELLSOUTH IS SAID TO HAVE TALKED WITH CLOSELY HELD COX CABLE COMMUNICATIONS SOUTHWESTERN WHICH ALREADY HAS A JOINT VENTURE IN BRITAIN WITH COX IS SUPPOSED TO HAVE TALKED WITH BOTH VIACOM AND COX NONE OF THOSE COMPANIES WOULD COMMENT STOCKS OF MANY BIG CABLE OPERATORS HAVE DOUBLED OR TRIPLED DURING THE PAST YEAR AS THEIR POTENTIAL FUTURE ROLE IN TELECOMMUNICATIONS AND MULTIMEDIA HAS COME INTO SHARPER FOCUS AMONG THE BIGGEST MOVERS VIACOM COMCAST CORP AND ADELPHIA COMMUNICATIONS CORP CABLE OPERATORS HAVE ANOTHER MOTIVATION TO STRIKE DEALS THEY NEED CAPITAL TO UPGRADE THEIR SYSTEMS TO PROVIDE PHONE SERVICE THE BIGGEST QUESTION MARK IS HOW AT&T'S LONGDISTANCE RIVAL MCI WILL SPEND ITS 4 BILLION WAR CHEST FROM BRITISH TELECOM MCI HAS SAID IT MIGHT FORGE CELLULAR ALLIANCES WITH SOME OF THE BABY BELLS IT ALSO COULD HOOK UP WITH A GIANT LIKE TELECOMMUNICATIONS INC THE LARGEST CABLE OPERATOR A HANDFUL OF BABY BELLS WHICH ALREADY OWN CELLULAR PROPERTIES MIGHT POOL THEM IN SOME INVESTMENT BANKERS' DREAMS POSSIBLY WITH GTE CORP THE NO 2 US CELLULAR OPERATOR SIX OF THE SEVEN BELLS HAVE ALREADY TEAMED UP WITH GTE TO MARKET CELLULAR SERVICES BUT THEY STILL NEED A LONGDISTANCE CONNECTION PACIFIC TELESIS ALREADY PLANS TO SPIN OFF ITS CELLULAR HOLDINGS IN EARLY 1994 FREEING THEM TO BE ACQUIRED INDEPENDENTLY NEXTEL COMMUNICATIONS WHOSE WIRELESS TECHNOLOGY RESEMBLES CELLULAR COULD ATTRACT OFFERS FROM MCI OR OTHER BIG PLAYERS NEXTEL STOCK HAS MORE THAN DOUBLED FROM ITS INITIAL OFFERING PRICE IN JANUARY 1992 AND IS UP 13 SINCE MONDAY BUT COMCAST CORP OWNS 34 OF ITS STOCK AND MAY NOT WANT TO SELL ALSO NEXTEL HAS A HEFTY 23 BILLION MARKET VALUE SPRINT CORP WHICH LAST YEAR ACQUIRED CENTEL CORP TO BECOME THE ONLY COMPANY WITH LOCAL CELLULAR AND LONGDISTANCE OPERATIONS LOOKS AS IF IT COULD USE A PARTNER ITS BALANCE SHEET IS RELATIVELY WEAK HANDICAPPING IT AS AN ACQUIRER MY GUESS IS SPRINT DOES A DEAL SAID ONE INVESTMENT BANKER A SPRINT SPOKESMAN SAID THE COMPANY IS ALWAYS LOOKING AT OPPORTUNITIES MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9308200045 930820 CORRECTIONS & AMPLIFICATIONS ABOUT A THIRD OF THE WASTE COLLECTED FOR RECYCLING IN SEATTLE IS COMPOSED OF NEWSPRINT A PAGEONE ARTICLE AUG 3 INCORRECTLY SAID THE ONETHIRD WAS NEWSPRINT'S SHARE OF THE CITY'S ENTIRE WASTE COLLECTION SYMPHONY PHARMACEUTICALS INC NAMED MICHAEL E LEWIS VICE PRESIDENT RESEARCH HE HAD BEEN SENIOR DIRECTOR OF SCIENTIFIC AFFAIRS AT CEPHALON INC AN ITEM WEDNESDAY INCORRECTLY REVERSED THOSE TITLES A CHART ACCOMPANYING THE ABREAST OF THE MARKET COLUMN AUG 9 CONTAINED INACCURATE DATA THE CHART ILLUSTRATING THE PERCENTAGE OF INDUSTRY GROUPS FALLING ABOVE BELOW OR MATCHING ANALYSTS' EARNINGS EXPECTATIONS SHOULD HAVE SHOWN THAT 49 OF GROUPS CAME IN ABOVE EXPECTATIONS 38 WERE BELOW AND 13 AS EXPECTED THE INCORRECT CHART SHOWED 42 OF GROUPS ABOVE EXPECTATIONS 33 BELOW AND 11 AS EXPECTED 9308200044 930820 DEAR MOM CLEAR MY CALENDAR BY CATHY RINDNER LABOR DAY IS AROUND THE CORNER AND SOME OF US ARE ALREADY BEMOANING SUMMER'S END BUT PARENTS HAVE A SPECIAL REASON TO DO SO THE END OF SUMMER MEANS THE START OF SCHOOL AND THESE DAYS PLANNING A YOUNG CHILD'S SCHEDULE TAKES ABOUT AS MUCH TIME AND SKILL AS FILLING OUT A TAX RETURN THE CHALLENGE IS NO LONGER FINDING ACTIVITIES TO FILL A CHILD'S DAY IT IS SAYING NO TO THE HUNDREDS OF OPTIONS AVAILABLE OUR MAILBOX BRIMS WITH BROCHURES URGING ME TO ENROLL OUR CHILDREN AGES THREE FIVE AND EIGHT IN EVERYTHING FROM COOKING TO MARTIAL ARTS I KEEP WAITING FOR SOME CLEVER SOUL TO COMBINE THE TWO INTO A SINGLE OFFERING CALLED KARATE IN THE KITCHEN AS AN EXERCISE IN FUN A GYMBOREE CLASS IS FINE BUT THE IMPLICATION IS THAT OUR CHILDREN WON'T BE JUST AS WELL SERVED BY TIME SPENT TOSSING A BALL READING TOGETHER OR RUNNING BREATHLESS IN THE PARK ONE COMPUTER COMPANY AIMS AT ANXIOUS PARENTS IN THE SAME INSIDIOUS WAY WITH MAGAZINE ADS THAT READ GIVE YOUR KIDS AN EDGE EDUCATORS ARE THEMSELVES DISMAYED BY THE NUMBER OF SPECIAL CLASSES THAT MANY CHILDREN ATTEND IN THE NAME OF ENRICHMENT THREEYEAROLDS NOT ONLY GO TO PRESCHOOL IN THE MORNING BUT STUDY FRENCH BALLET OR GYMNASTICS AFTER LUNCH ONE EXASPERATED TEACHER TELLS OF A FOURYEAROLD ASKING FOR HELP IN THE TOILET BEFORE TROTTING OFF TO TENNIS ANOTHER TEACHER SAYS THAT CHILDREN SOMETIMES CLING TO HER AT PICKUP TIME THEY DREAD GOING TO THE SAME COSTLY CLASSES FOR WHICH PARENTS HAD THEM WAITLISTED WEEKS BEFORE WHAT HAPPENED TO UNSTRUCTURED TIME A GENEROUS EXPLANATION IS THAT WE ENJOY GIVING CHILDREN OPPORTUNITIES WE NEVER HAD THE TRUTH HOWEVER IS THAT MANY PARENTS HAVE DOUBTS ABOUT HOW MUCH TIME THEY SPEND AWAY FROM THEIR FAMILIES AND ONE WAY TO ASSUAGE THIS GUILT IS TO BELIEVE THAT TIME SPENT IN THESE CLASSES IS SOMEHOW MORE BENEFICIAL TO CHILDREN THAN THE TIME WE KNOW WE SHOULD BE GIVING THEM OURSELVES PERHAPS IT IS TOO PAINFUL TO ADMIT HOW IMPORTANT WE ARE TO OUR CHILDREN THAT THEY WOULD RATHER SPEND TIME WITH US THAN WITH ANYONE ELSE IN THE WORLD DAVID ELKIND AN EXPERT ON CHILDREN HAS SUGGESTED THAT THE 1960S GAVE BIRTH TO THE NOTION THAT EARLIER IS BETTER STUDIES SHOWED THAT UNDERPRIVILEGED CHILDREN WHO WERE ENROLLED IN EARLYEDUCATION PROGRAMS DID AS WELL IN SCHOOL AS THEIR MORE AFFLUENT PEERS LINKING OF EARLY EXPERIENCE AND ABILITY BECAME KNOWN AS THE COMPETENTCHILD THEORY AND IT LED TO THE HEAD START PROGRAM AS MIDDLECLASS MOTHERS ENTERED THE WORK FORCE HOWEVER THE IDEA BEHIND HEAD START THAT EARLIER EXPOSURE WOULD HELP A POOR CHILD TO DO BETTER WAS USED AS PROOF THAT ALL CHILDREN WOULD BENEFIT FROM EARLY FORMAL LEARNING PARENTS HOPE THAT EARLY MUSIC LESSONS FOR EXAMPLE WILL BUILD A CHILD'S CONFIDENCE THE IRONY HOWEVER IS THAT ANY TIME CHILDREN ARE ASKED TO DO TOO MUCH TOO SOON THEY ARE AT GREATER RISK FOR FEELINGS OF FAILURE AND LOW SELFESTEEM A CHILD'S TIME DOES NOT HAVE TO BE PLANNED TO BE MEANINGFUL AND A TV SET IS NOT THE ONLY OPTION FOR UNSCHEDULED HOURS A VARIETY OF EXPERIENCES MUST PRECEDE A CHILD'S LEARNING TO READ OR HAVING THE CONFIDENCE TO TAKE UP A NEW SPORT PLAYING AT HOME AND GOING TO THE STORE OR TO A FRIEND'S HOUSE ARE MORE THAN ADEQUATE PLAYFIGHTING AND AGGRESSIVE GAMES ALSO SERVE A PURPOSE YOUNG CHILDREN'S DEMONS ARE NUMEROUS AND FREE PLAY IS ONE OF THE ONLY MEANS THEY HAVE OF CONQUERING FEAR IDLE TIME IN THE EARLY YEARS IS BECOMING A THING OF THE PAST REMEMBER THE LAZY DAYS OF SUMMER SOME CHILDREN STILL SLEEP LATE AND PLAY WITH THE KIDS ACROSS THE STREET UNTIL IT'S TIME TO COME HOME FOR DINNER BUT WITH THE MAJORITY OF MOTHERS WORKING AT LEAST PART OF THE WEEK FEWER CHILDREN ENJOY THAT LUXURY THE AMERICAN CAMPING ASSOCIATION SAYS THE NUMBER OF ACCREDITED DAY CAMPS HAS NEARLY DOUBLED SINCE 1972 WHEN MANY WOMEN BEGAN JUGGLING WORK AND FAMILY SOME SPECIALTY CAMPS HAVE CHILDREN SIGNING ONTO A COMPUTER INSTEAD OF SIGNING THEIR ARTWORK WE HEAR ABOUT DAYS THAT ARE AS CRAMMED AS A CORPORATE CEO'S EVEN LOWTECH CAMPS SKIMP ON LEISURE WE LEARNED THIS THE HARD WAY LAST JULY WHEN OUR DAUGHTER SPENT NEARLY TWO HOURS EACH DAY TRAVELING TO AND FROM A CAMP IN A WOODED SUBURB OF NEW YORK CITY BUT WHENEVER SHE STOPPED TO ENJOY THE LUSH SURROUNDINGS SHE WAS SCOLDED FOR MAKING THE GROUP LATE FOR THE NEXT ACTIVITY THEY CALLED ME A SPACE CADET SHE TOLD US INDIGNANTLY SO MUCH FOR INSTILLING A LOVE OF NATURE THE RACE WILL SPEED UP IN THE FALL COME SEPTEMBER CHILDREN ACROSS THE COUNTRY WILL FINISH A FULL DAY OF KINDERGARTEN COMPARED TO A HALFDAY WHEN WE WERE GROWING UP ONLY TO ATTEND AN AFTERSCHOOL PROGRAM UNTIL 6 PM WHEN A WORKING MOM OR DAD COMES TO TAKE THEM HOME THAT'S TOO MUCH CHANGE FOR A FIVEYEAR OLD FINANCES OF COURSE DO CONSTRAIN SOME PARENTS EVEN SO THE IMPULSE TO OVERSCHEDULE SEEMS TO CUT ACROSS SOCIAL AND ECONOMIC LINES POWER MOMS THE RIGHTEOUS AND SUPERORGANIZED STAYATHOMES DESCRIBED ON THIS PAPER'S FIRST PAGE RECENTLY CAN BE THE WORST SCHEDULING OFFENDERS BUT LET'S BE HONEST WITH OURSELVES OUR OWN BUSY SCHEDULES WHATEVER THEY INVOLVE ARE NO EXCUSE FOR BURDENING A YOUNG CHILD'S MS TEMPELSMAN'S BOOK CHILDWISE BREAKING THE PATTERNS THAT KEEP PARENTS AND CHILDREN APART WILL BE PUBLISHED NEXT YEAR BY WILLIAM MORROW 9308200043 930820 BUSINESS BRIEF SOLITRON DEVICES INC REORGANIZATION CONFIRMED NEW DIRECTORS ARE CHOSEN SOLITRON DEVICES INC SAID THE US BANKRUPTCY COURT IN MIAMI CONFIRMED ITS PLAN OF REORGANIZATION ALLOWING THE COMPANY TO EMERGE FROM CHAPTER 11 PROCEEDINGS SOLITRON BASED IN WEST PALM BEACH FLA MAKES SEMICONDUCTOR COMPONENTS AND OTHER DEVICES FOR THE AEROSPACE AND MILITARY MARKETS THE COMPANY SAID IT WILL HAVE A NEW BOARD AFTER THE REORGANIZATION THE DIRECTORS ARE ROBERT ADLER FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BIC CORP ROBERT PERFETTO PRESIDENT OF ESSEX PRODUCTS GROUP INC AND SHEVACH SARAF SOLITRON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SOLITRON EXPECTS REVENUE FOR THE FISCAL YEAR ENDING FEB 28 1994 OF ABOUT 12 MILLION SOLITRON SAID IT HAS VIRTUALLY NO SECURED DEBT AFTER THE RESTRUCTURING AND THE RECEIPT OF AN INSURANCE CLAIM PAYMENT OF ABOUT 11 MILLION AS PART OF THE RESTRUCTURING SOLITRON COMPLETED THE SALE OF ITS MICROWAVE DIVISION IN MARCH 9308200042 930820 BUSINESS BRIEF YAMAICHI SECURITIES LTD FINAL DETAILS ARE DISCUSSED OF FINANCING FIRM'S BAILOUT YAMAICHI SECURITIES LTD IS CLOSE TO DECIDING THE DETAILS OF A BAILOUT OF ITS NONBANK FINANCING FIRM YAMAICHI FINANCE CO THE BROKERAGE HOUSE SAID YAMAICHI REAL ESTATE INC A REALESTATE MANAGEMENT AFFILIATE WITH SUBSTANTIAL UNREALIZED PROFITS COULD PROVIDE YAMAICHI FINANCE WITH ROUGHLY 80 BILLION YEN 7862 MILLION IN FUNDS AND BUY ROUGHLY 50 BILLION YEN OF REAL ESTATE THAT YAMAICHI FINANCE IS HOLDING AS COLLATERAL FOR SHAKY LOANS A SPOKESMAN SAID YAMAICHI FINANCE MAY ALSO PLACE ABOUT 10 BILLION YEN OF NEW SHARES WITH GROUP COMPANIES THE SPOKESMAN SAID HE SAID YAMAICHI SECURITIES MUST WORK OUT DETAILS WITH THE FINANCE MINISTRY ON TAX PROVISIONS FOR THE GROUP RESCUE BEFORE FINALIZING ANY PACKAGE BUT HE SAID A FINAL PLAN SHOULD BE READY SHORTLY YAMAICHI FINANCE IS HOLDING ROUGHLY 180 BILLION YEN IN PROBLEM LOANS 9308200041 930820 OFFICIALS IN TAIWAN ARE DETAINED IN PROBE OF ERICSSON CONTRACTS SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN PROSECUTORS DETAINED EIGHT OFFICIALS FOR ALLEGEDLY TAKING PAYMENTS TO HELP A SWEDISH TELECOMMUNICATIONS COMPANY WIN CONTRACTS VALUED AT 226 MILLION OFFICIALS SAID KO CHINGNAN PROSECUTOR FOR THE TAIPEI DISTRICT COURT SAID THE TELECOMMUNICATIONS OFFICIALS WERE DETAINED WEDNESDAY PENDING FORMAL CHARGES OF GRANTING FAVORS TO SWEDEN'S TELEFON AB LM ERICSSON FOUR JUNIOR OFFICIALS WERE LATER RELEASED ON BAIL OF 200000 TAIWAN DOLLARS US7496 EACH BECAUSE THEY ACTED ON ORDERS FROM THEIR SUPERVISORS MR KO SAID THE OTHER FOUR WHO ARE MORE SENIOR OFFICIALS REMAINED IN CUSTODY HE SAID BETWEEN 1988 AND LAST YEAR ERICSSON WON SIX GOVERNMENT CONTRACTS VALUED AT T6 BILLION TO SUPPLY CELLULARTELEPHONE EXCHANGES INVESTIGATORS SPEAKING ON CONDITION OF ANONYMITY SAID ERICSSON WAS NOT THE LOWEST BIDDER THE EIGHT DETAINED OFFICIALS ALLEGEDLY RECEIVED KICKBACKS OF AN UNSPECIFIED AMOUNT AND CHANGED PROCUREMENT SPECIFICATIONS TO HELP ERICSSON WIN THE CONTRACTS THEY SAID THEY ADDED THAT CHIEN WENCHUN CHIEF OF THE ADMINISTRATION'S TRANSMISSION DEPARTMENT AND THE OTHER SEVEN OFFICIALS DENIED THE CHARGES IN STOCKHOLM ERICSSON FLATLY DENIED ANY WRONGDOING IT WAS UNCLEAR WHETHER ERICSSON EXECUTIVES WOULD BE INVESTIGATED 9308200040 930820 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY THE WHITE HOUSE SCRAMBLES TO OFFSET GEPHARDT'S TRADEPACT OPPOSITION WHILE STILL HOPING TO MOLLIFY THE HOUSE MAJORITY LEADER AND OTHER NAFTA FOES IN THE PARTY LEADERSHIP OFFICIALS PREPARE A FALLBACK STRATEGY CENTERING ON SPEAKER FOLEY AND REPS ROSTENKOWSKI MATSUI WHOSE PROLABOR RECORD GIVES HIM CREDIBILITY WITH COLLEAGUES WARY OF UNION OPPOSITION AND WYDEN WHO IS SIMILARLY WELLPOSITIONED TO PARRY ENVIRONMENTAL CONCERNS TO WAVERING DEMOCRATS BACKERS WILL CAST THE TRADE PACT AS A CHANCE TO BREAK FREE FROM THE PARTY'S SPECIAL INTERESTS AND STAND UP FOR ECONOMIC GROWTH IT WILL BE A REPLAY OF THE NEW DEMOCRATOLD DEMOCRAT DEBATE THAT CLINTON STRADDLED IN HIS CAMPAIGN BUT HAS STRUGGLED WITH AS PRESIDENT MATSUI ADMITS THERE'S BEEN A TOTAL VACUUM OF PRONAFTA ARGUMENTS SO FAR BUT HE INSISTS WE'RE GOING TO GET THE VOTES CLEARING THE BOOKS DISPOSAL OF FAILED THRIFTS SPEEDS UP AFTER A LONG DELAY THE RESOLUTION TRUST CORP HAVING FOUND SOME 5 BILLION IN RESERVES THAT IT WAS NOT PREVIOUSLY SURE IT COULD USE HAS RESOLVED NINE INSOLVENT S&LS IN RECENT WEEKS AND IS SEEKING TO DISSOLVE AND SELL OFF ASSETS OF 14 MORE ACTION BY CONGRESS AFTER LABOR DAY TO FREE UP ANOTHER 183 BILLION THOUGH BY NO MEANS A SURE THING WOULD FURTHER SPEED ACTION HEALTHY THRIFTS PUSH THE OFFICE OF THRIFT SUPERVISION TO TAKE OVER REMAINING AILING THRIFTS FASTER AND HAND THEM TO THE RTC WHICH LOSES ITS AUTHORITY TO ACCEPT ANY MORE ON SEPT 30 AFTER THAT INSOLVENT THRIFTS WOULD BE SENT TO THE FEDERAL DEPOSIT INSURANCE CORP AND THE HEALTHY INSTITUTIONS FEAR THEIR OWN FDIC PREMIUMS COULD GO UP TO PAY FOR THE DISPOSITION COSTS CLINTON'S FOES ON HEALTHCARE OVERHAUL MOVE TO A WAR FOOTING THE POWERFUL NATIONAL FEDERATION OF INDEPENDENT BUSINESS SAYS IT WILL FLOOD CAPITOL HILL WITH LETTERS AGAINST CLINTON'S PROPOSED MANDATE TO EMPLOYERS TO PROVIDE HEALTH INSURANCE ANYTHING CONGRESS HAS SEEN IN THE PAST IS GOING TO BE MINUSCULE COMPARED TO WHAT THEY'RE GOING TO SEE WARNS NFIB LOBBYIST MICHAEL ROUSH MEANWHILE A FALL CAMPAIGN BY RALPH NADER'S PUBLIC CITIZEN WILL FEATURE RALLIES AROUND THE COUNTRY BY LOCAL CONSUMER GROUPS LABOR UNIONS NURSING ASSOCIATIONS AND OTHERS SUPPORTING A CANADIANSTYLE SINGLEPAYER APPROACH CITIZENS FOR A SOUND ECONOMY THE CONSERVATIVE GROUP THAT LED THE ATTACK AGAINST CLINTON'S BUDGET PLANS A LETTERWRITING CAMPAIGN AND PRINT AND POSSIBLY TV ADS CLINTON INTENDS TO LAY OUT THE HEALTH PLAN IN A SEPT 22 SPEECH TO A JOINT SESSION OF CONGRESS DUELING PRIORITIES SET CLINTON AIDES ON EDGE AFTER SEVERE INFIGHTING BETWEEN ADVOCATES FOR HEALTH CARE AND ADVOCATES FOR THE FREETRADE AGREEMENT CHIEF OF STAFF MCLARTY CONVENES MEETINGS WITH WARRING CAMPS TO REMIND THEM THEY NEED TO WORK TOGETHER ASPIN'S REPORT ON RESHAPING THE MILITARY ESTABLISHMENT DUE NEXT MONTH ALREADY DRAWS SKEPTICAL REVIEWS DEFENSE EXPERTS BRIEFED ON IT SAY THEY ARE SURPRISED BY THE LACK OF MAJOR CHANGES ASIDE FROM THE EXPECTED CUT OF THE AFX AIRCRAFT NO WEAPONS PROGRAMS ARE CANCELED CRITICS SAY ASPIN IS AIMING FOR SOMETHING CLOSE TO A BUSHERA FORCE BUT WON'T HAVE BUSHSIZED DEFENSE BUDGETS TO SUPPORT IT ENDANGERED INCUMBENTS LAG BEHIND IN SENATE FUND RAISING LATEST REPORTS SHOW THAT ARIZONA DEMOCRAT DECONCINI HAS LESS CASH IN HIS CAMPAIGN COFFERS THAN HIS GOP FOE REP KYL APPOINTED TENNESSEE SEN MATHEWS HAS RAISED ONLY 78000 WHILE HIS DEMOCRATIC PRIMARY CHALLENGER REP COOPER HAS RAISED MORE THAN 1 MILLION MINNESOTA GOP SEN DURENBERGER HAS ONLY 109000 STOCKPILED FOR HIS DIFFICULT REELECTION DRIVE FREEZING AND STARVATION IN BOSNIA LOOM NEXT WINTER UN OFFICIALS FEAR NATO PLANNERS CONCLUDE THAT TO AVERT WIDESPREAD DEATHS THE SERBS BESIEGING SARAJEVO AND OTHER MUSLIM ENCLAVES WILL NEED TO BEGIN ALLOWING FOOD CONVOYS THROUGH DURING THE NEXT SEVERAL WEEKS AFTER THAT BAD WEATHER WILL BEGIN CLOSING ROADS AND SARAJEVO'S AIRPORT SADDAM SEEKS TO PLACATE THE UN ENOUGH TO RESUME OIL SALES HOPING TO GET FREE OF TRADE SANCTIONS THE IRAQIS LESSEN THEIR HARASSMENT OF UN INSPECTORS AND AGREE TO OPEN THEIR MISSILETESTING FACILITIES TO INSPECTION IRAQ ALSO HAS DESTROYED 351000 GALLONS OF POISON GAS AND RELATED CHEMICALS UNDER UN SUPERVISION A HIGHLEVEL TEAM FROM BAGHDAD ARRIVES IN NEW YORK LATE THIS MONTH TO TRY TO SETTLE OTHER OUTSTANDING ISSUES ESPECIALLY DEMANDS FOR IRAQ'S SECRET LIST OF NUCLEAR AND MISSILEPARTS SUPPLIERS UN OFFICIALS SAY THEY HAVE DESTROYED ALL NUCLEAR FACILITIES THEY KNOW ABOUT BUT BELIEVE IRAQ HAS HIDDEN SOME RELATED EQUIPMENT IN ADDITION PENTAGON OFFICIALS SAY SADDAM HUSSEIN MAY HAVE AS MANY AS 200 SCUD MISSILES HIDDEN AWAY MINOR MEMOS SHAKING HANDS AT THE SPRINGDALE ARK AIRPORT CLINTON IS TICKLED BY A WELLWISHER'S TSHIRT FEATURING A PICTURE OF SOCKS AND THE INSCRIPTION THE MICE IN LITTLE ROCK ARE NOTHING COMPARED TO THE RATS IN DC AWAITING CLINTON'S ARRIVAL ON MARTHA'S VINEYARD IS A POSTER ALONG THE BEACH ROAD PICTURING HIM WITH A LONG NOSE AND BEARING THE CAPTION CLINOCCHIO 9308200039 930820 BUSINESS BRIEF BORLAND GAINS IN BID FOR APPEALS RULING ON LOTUS COPYRIGHTS BOSTON BORLAND INTERNATIONAL INC WAS ENJOINED FROM SELLING CURRENT VERSIONS OF ITS QUATTRO PRO SOFTWARE ENABLING IT TO APPEAL COURT RULINGS THAT IT HAD INFRINGED LOTUS DEVELOPMENT CORP COPYRIGHTS IN AN UNUSUAL TWIST BORLAND LAWYERS REQUESTED THE INJUNCTION BECAUSE IT ASSURES THAT THE US CIRCUIT COURT OF APPEALS IN BOSTON WILL HEAR THEIR APPEAL JACK BLOUNT SENIOR VICE PRESIDENT OF BORLAND SAID THE INJUNCTION WON'T HAVE MUCH IMPACT ON BORLAND BECAUSE IT HAS READIED AN IMPROVED VERSION OF QUATTRO PRO HE SAID WE'LL SHIP A PRODUCT WITH NO OFFENDING TECHNOLOGY VERY SHORTLY JUDGE ROBERT KEETON ALSO SET OCT 3 1994 AS THE DATE FOR STARTING A TRIAL ON THE AMOUNT OF DAMAGES OWED TO LOTUS FROM BORLAND'S INFRINGEMENT BY COPYING PORTIONS OF LOTUS 123 JUDGE KEETON SAID THAT HE EXPECTS THE COURT OF APPEALS TO HEAR AND RULE ON BORLAND'S APPEAL BY THEN BORLAND HAS CONSISTENTLY MAINTAINED THAT JUDGE KEETON HAS ERRED IN HIS SUMMARY JUDGMENT THAT BORLAND VIOLATED SOFTWARE COPYRIGHT LAW IT HAS REPEATEDLY ASKED THE JUDGE TO LET IT APPEAL HIS RULINGS TO THE CIRCUIT COURT LOTUS INITIALLY SAID IT WOULDN'T DEMAND AN INJUNCTION BECAUSE IT PREFERRED TO PROCEED IMMEDIATELY TO THE DAMAGE PORTION OF THE CASE WHICH IS BEING TRIED SEPARATELY FROM THE LEGAL ISSUES LOTUS OFFICALS HAVE SAID DAMAGES MAY EXCEED 100 MILLION JUDGE KEETON SAID HIS RULING PERMITS THE APPEAL AND PREPARATION FOR THE DAMAGE TRIAL TO PROCEED SIMULTANEOUSLY HE SAID HE HOPES THAT IF THE APPEALS COURT UPHOLDS HIM IT WILL LEAD THE PARTIES TO REACH A SETTLEMENT AND AVOID TRIAL RICHARD SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO SAID THE RULING BENEFITS BORLAND BECAUSE THEY HAVE THE CERTAINTY OF BEING HEARD ON APPEAL IT'S DISAPPOINTING FOR LOTUS THAT THE JUDGE WENT TO OCTOBER 1994 FOR THE TRIAL 9308200037 930820 POTOMAC WATCH PAUL A GIGOT IS ON VACATION 9308200036 930820 PUBLISHING TASTEMAKERS' MAGAZINES WILL CLASH BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GET READY FOR AN EVERSOTASTEFUL TUSSLE BETWEEN AMERICA'S TASTEMAKERS MARTHA STEWART WITH HER COFFEETABLE BOOKS KMART BED SHEETS AND IMMENSELY SUCCESSFUL MAGAZINE HAS LONG REIGNED AS THE UNDISPUTED QUEEN OF MASSMARKET DOMESTIC CHIC NOW COMES MARY EMMERLING A BIGSELLING DECORATING AUTHOR HERSELF TRYING TO SASHAY IN ON MS STEWART'S LUCRATIVE DOMAIN IN MS STEWART'S CORNER IS TIME WARNER INC PUBLISHER OF MARTHA STEWART LIVING MAGAZINE WHICH IN TWO YEARS HAS BECOME ONE OF THE FASTESTGROWING PUBLICATIONS IN TIME INC'S HISTORY BACKING MS EMMERLING IS NEW YORK TIMES CO WOMEN'S MAGAZINES WHICH THIS MONTH BEGAN PUBLISHING MARY EMMERLING'S COUNTRY MAGAZINE A BIMONTHLY WITH AN INITIAL NEWSSTAND CIRCULATION OF 650000 JUST WHO IS MARY EMMERLING ANYWAY AS IT HAPPENS IT WAS MS EMMERLING WHO IN 1975 GAVE AN UNKNOWN MARTHA STEWART THEN A HOUSEWIFE AND CATERER IN WESTPORT CONN HER FIRST JOB IN MAGAZINES CREATING FOOD FOR PHOTO SHOOTS MS EMMERLING HAD HEARD THROUGH THE GRAPEVINE THAT MS STEWART MADE THE BEST BREAD BUT WHILE MS STEWART WENT ON TO PARLAY TALENTS WITH DRIED FLOWERS AND SPUN SUGAR INTO WORLDCLASS CELEBRITY STATUS MS EMMERLING LABORED ON IN RELATIVE OBSCURITY WELLKNOWN AMONG DECORATING COGNOSCENTE AS THE AUTHOR OF 13 BIGSELLING BOOKS ON AMERICAN COUNTRY STYLE MS EMMERLING ALSO MARKETS HER OWN LINE OF HOME FURNISHINGS BUT REAL STARDOM HAS THUS FAR ELUDED HER THE NEW YORK TIMES CO HOPES TO CHANGE THAT WITH HER NEW MAGAZINE MS EMMERLING'S PHOTOGRAPH AND PERSONALITY WILL IMBUE ITS PAGES AND DEFINE ITS IDENTITY MUCH AS MS STEWART HAS PUT HER PERSONAL STAMP ON HER OWN PUBLICATION MS EMMERLING A 50YEAROLD DIVORCED MOTHER OF TWO ENVISIONS BLANKETING THE US HEARTLAND WITH HER BRAND OF CASUAL WESTERN COUNTRY DECOR I WANT TO DESIGN GREAT STYLE AND TASTE FOR MIDAMERICA SHE SAYS THE WORLD HAS GOTTEN SO HARD I WANT TO MAKE IT COMFORTABLE AND EASY THE PREMIERE ISSUE THIS MONTH WILL BE FOLLOWED BY MARY EMMERLING'S COUNTRY CHRISTMAS WITH A CIRCULATION OF 12 MILLION AND FIVE OTHER ISSUES IN 1994 IF THE NEW MAGAZINE TAKES HOLD NEW YORK TIMES CO HAS CONTRACTED TO USE MS EMMERLING'S NAME IN DEVELOPING OTHER UNSPECIFIED VENTURES AND PROPERTIES IN MARY WE BOUGHT OURSELVES A FRANCHISE SAYS CHARLES H TOWNSEND PRESIDENT AND CHIEF EXECUTIVE OF NEW YORK TIMES CO'S WOMEN'S MAGAZINE GROUP THE SHOWDOWN WILL OCCUR AT SUPERMARKET CHECKOUT RACKS AND TENSION IS MOUNTING TIME WARNER RECENTLY SENT A QUESTIONNAIRE TO MARTHA STEWART LIVING READERS ASKING HAVE YOU EVER PURCHASED ANY OF MARY EMMERLING'S BOOKS HOW SIMILAR DO YOU THINK MARY EMMERLING IS TO MARTHA STEWART NEW YORK TIMES CO CAN'T BE BLAMED FOR TRYING TO EMULATE A GOLD MINE LIKE MS STEWART TIME WARNER HAS A 10YEAR CONTRACT WITH MS STEWART TO CREATE PROPERTIES AND SHE HASN'T MISSED YET PART OF TIME WARNER'S TIME INC VENTURES UNIT MARTHA STEWART LIVING WAS LAUNCHED IN 1991 AND ITS PAID CIRCULATION HAS SINCE SOARED TO 725000 MS STEWART'S WEEKLY HALFHOUR TV SHOW WILL MAKE ITS DEBUT SEPT 18 REACHING MOST OF THE COUNTRY BUT FOR NEW YORK TIMES CO ATTEMPTING TO REPLICATE THE MARTHA STEWART PHENOMENON IS A LONGSHOT SUCCESSFUL MAGAZINES CAN RARELY BE CLONED AS SEVERAL FAILED IMITATORS OF VANITY FAIR HAVE LEARNED AND WHILE MS EMMERLING'S MAGAZINE HAS MORE DOWNHOME MASSMARKET APPEAL THAN MARTHA STEWART LIVING IT'S UNCERTAIN WHETHER THERE IS ROOM FOR YET ANOTHER SHELTER MAGAZINE AS FOR THE CONTEST OF PERSONALITIES SOME MEDIA WATCHERS WONDER WHETHER THE RUDDYCHEEKED MS EMMERLING'S WHOLESOME WARMTH WILL BE A MATCH FOR THE GLAMOROUS EXMODEL MS STEWART AND THE IMAGE OF PERFECTION SHE PURVEYS THEN THERE IS THE MATTER OF MS EMMERLING'S SIGNATURE WESTERN COUNTRY STYLE CHARMINGLY BATTERED FURNITURE COLORFUL QUILTS SLUNG OVER GINGHAM SOFAS FLEAMARKET FINDS AND LOTS OF US FLAGS MS EMMERLING A GREATGREAT GRANDDAUGHTER OF WILLIAM HENRY HARRISON THE NINTH US PRESIDENT WILL BE SELLING A RUSTIC CHARM ALREADY WRUNG DRY BY MARKETERS FROM RALPH LAUREN TO COUNTRY CURTAINS CATALOG AT LAST COUNT THERE WERE AT LEAST 10 NATIONAL MAGAZINES WITH COUNTRY FORMATS RANGING FROM COUNTRY LIVING TO COUNTRY MUSIC IF THE COUNTRY LOOK HAS BECOME A CLICHE IT WAS MS EMMERLING WHO HELPED MAKE IT SO A FORMER HOUSE BEAUTIFUL DECORATING EDITOR WHO WAS TOLD BY A BOOK AGENT THAT SHE HAD A LOOK MS EMMERLING PUBLISHED HER FIRST BOOK AMERICAN COUNTRY IN 1980 THAT BOOK AND A DOZEN MORE THAT FOLLOWED HAVE SOLD MORE THAN 15 MILLION COPIES THIS SUMMER'S AMERICAN COUNTRY COTTAGES AT 25 A COPY IS NOW IN ITS SECOND PRINTING MARY WAS THE FIRST ONE TO PUT COUNTRY IN THE VERNACULAR SAYS BUFFY BIRRITTELLA A SENIOR EXECUTIVE AT POLO RALPH LAUREN CORP IT WAS A NATURAL LEAP FROM BOOKS TO MERCHANDISE TIEINS MS EMMERLING CREATED BEDSHEETS FOR JC PENNEY CO LENT HER NAME TO A LINE OF ERSATZ WESTERN FURNITURE AND ACCESSORIES LIKE COWBOYBOOT LAMPS AND SOON WILL COME TO MARKET WITH HER OWN LINE OF TABLEWARE AND WALLPAPER NEXT UP AND POSSIBLY ONE UP ON MS STEWART SHE IS TALKING WITH BARRY DILLER'S QVC NETWORK INC ABOUT A POSSIBLE ONEHOUR SPOT ON THE HOMESHOPPING NETWORK DURING WHICH SHE WILL DISCUSS COUNTRY STYLE WHILE PITCHING HER GOODS WHEN MARY STARTED COUNTRY WAS VERY NEW AND FRESH SAYS MS BIRRITTELLA OF RALPH LAUREN WHAT HAS GOTTEN OLD NOW IS THE CUTESYWOOTSEY COUNTRY KIND OF STUFF MARY WON'T DO THAT SHE'S ABOUT A NATURAL PERSONAL WAY OF DECORATING TO BUILD HER MAGAZINE MS EMMERLING WILL DRAW ON HER EXTENSIVE CONTACTS AMONG WRITERS DECORATORS MANUFACTURERS AND DEVOTEES OF COUNTRY STYLE HER CONNECTIONS ALREADY HAVE PAID DIVIDENDS WHEN HOUSE BEAUTIFUL RECENTLY ASKED TO PHOTOGRAPH THE HOME OF HOUSTON DECORATOR CAROL GLASSER MS GLASSER TURNED THEM DOWN SO THAT HER FRIEND MS EMMERLING COULD FEATURE IT IN HER MAGAZINE MARTHA STEWART IS STILL PART OF MS EMMERLING'S NETWORK ON THE SURFACE ALL REMAINS CIVIL BOTH WOMEN SIP COCKTAILS AT THE SAME POSH BOOK PARTIES SPEAK HIGHLY OF EACH OTHER'S BOOKS AND EVEN SHARE THE SAME BOOK PUBLISHER EACH HAS KIND WORDS TO SAY ABOUT THE OTHER'S SUCCESS MOST OF THE TIME IS THERE FOR EXAMPLE A SMIDGEN OF CRITICISM IMPLICIT IN MS EMMERLING'S MENTION OF HOW OFTEN MS STEWART GRACES HER MAGAZINE'S COVER I DON'T HAVE TO PUT MYSELF ON THE COVER MS EMMERLING SAYS MARTHA'S MAGAZINE IS ABOUT MARTHA ABOUT HER HOUSE AND HOW SHE DOES HER HOUSE ME I LISTEN TO OTHER PEOPLE MS STEWART OF COURSE WISHES MS EMMERLING THE BEST WHILE DISCREETLY CLAIMING SOME OF THE CREDIT IN ADVANCE IF HER MAGAZINE IS A RUNAWAY SUCCESS I WILL BE PERFECTLY HAPPY SHE SAYS IF I AM BEING EMULATED MY FATHER TAUGHT ME THAT IS THE HIGHEST FORM OF FLATTERY 9308200035 930820 THE AMERICAS COLOMBIA'S GUERRILLAS HAVE LOST ALL THEIR GLAMOUR BY CECILIA RODRIGUEZ BOGOTA COLOMBIA NO LESS A FIGURE IN THE CAUSE OF LATIN AMERICAN RADICALISM THAN FIDEL CASTRO WAS APPROACHED TO SERVE AS A PEACEMAKER LAST WEEK BY COLOMBIAN PRESIDENT CESAR GAVIRIA IN COLOMBIA ON A STATE VISIT CASTRO WAS REPORTEDLY ASKED TO DO WHAT THE COLOMBIAN PEOPLE HAVE SO FAR BEEN UNABLE TO DO GET THE COUNTRY'S MARXIST GUERRILLAS TO LAY DOWN THEIR ARMS AND GIVE UP THEIR 30YEAR WAR WITH THE STATE HOWEVER IT IS UNCLEAR WHETHER EVEN CASTRO THE INTELLECTUAL GODFATHER OF COLOMBIA'S GUERRILLAS COULD GET THEM TO GIVE UP THE FIGHT IT'S THIS INTRANSIGENCE ONCE THE SOURCE OF THEIR STRENGTH AND POPULAR SUPPORT WHICH MAY SOON BECOME THE REASON FOR THEIR DEMISE RECENTLY SEVERAL COLOMBIAN GUERRILLAS LIVING IN EXILE IN MEXICO CITY SPOKE OF THEIR COMMITMENT TO THE CAUSE SITTING WITH THEM IN A CAFE SHORTLY BEFORE LEAVING FOR COLOMBIA I FOUND THEM SO CONVINCED OF THE LEGITIMACY OF THEIR BATTLE AGAINST POLITICAL AND SOCIAL OPPRESSION IN COLOMBIA SO CONCERNED THAT THE COUNTRY'S FUTURE OFFERS ONLY VIOLENCE BUT MOST OF ALL SO COMMITTED TO DEFEND THEIR BELIEFS WITH THEIR LIVES THAT I QUESTIONED WHETHER I HAD BEEN DUPED BY COLOMBIA'S OFFICIAL LINE IT WAS A THROWBACK TO ANOTHER MORE NAIVE ERA TEN YEARS AGO MANY OF COLOMBIA'S BEST AND BRIGHTEST THE TOP UNIVERSITY STUDENTS TEACHERS ARTISTS INTELLECTUALS BECAME DIRECTLY OR INDIRECTLY INVOLVED IN ONE OF THE MANY GUERRILLA ORGANIZATIONS OR GUERRILLA FRONT GROUPS THEIR CAUSE APPEALED TO THOSE WHO VIEWED THE GUERRILLAS' INSURGENCY AS THE ONLY WAY TO STRIKE AT A SYSTEM IN WHICH CORRUPT WEAK AND INEFFICIENT GOVERNMENTS SERVED ONLY THE INTERESTS OF THE PRIVILEGED CHANGE BY LEGAL MEANS SEEMED IMPOSSIBLE WHEN GUERRILLAS ATTACKED THE ALLIES OF THE GOVERNMENT BIG LANDOWNERS MULTINATIONAL CONGLOMERATES FOREIGN OIL COMPANIES MANY COLOMBIANS PRIVATELY SUPPORTED SUCH ACTIONS BUT NO MORE WHILE COLOMBIA'S GOVERNING STRUCTURE HAS NOT UNDERGONE REVOLUTIONARY CHANGE THOSE INTERESTED IN AFFECTING SUCH CHANGE NO LONGER SUPPORT THE GUERRILLAS EVEN BEFORE THE COLLAPSE OF THE COMMUNIST WORLD THE TREND TOWARD DISILLUSIONMENT WITH THE GUERRILLAS' MARXIST GOALS AND TACTICS HAD ALREADY BEGUN HERE COLOMBIANS CAME TO REALIZE THAT GUERRILLAS WERE NO LONGER GROUPS OF YOUNG STARRYEYED IDEALISTS READY TO DIE DEFENDING THE LOST CAUSES OF JUSTICE AND EQUALITY THEY HAD BEEN TRANSFORMED INTO PRIVATE ARMIES AUTONOMOUS AND SELFSUFFICIENT THEIR MAIN GOALS SELFPERPETUATION AND ENRICHMENT THE LONGER THE GUERRILLAS CONTINUE WITH THEIR WAR OF ATTRITION THE MORE EVIDENT THEIR INCAPACITY TO ACHIEVE THEIR DREAM SEVERAL MONTHS AGO COLOMBIA'S MOST INFLUENTIAL INTELLECTUALS A LIST OF FORMER SYMPATHIZERS THAT INCLUDED NOBEL PRIZE WINNING AUTHOR GABRIEL GARCIA MARQUEZ WROTE AN OPEN LETTER CALLING ON THE GUERRILLAS TO STOP THE WAR THAT HAS DONE SO MUCH DAMAGE TO COLOMBIA SKEPTICISM AND DISENCHANTMENT ARE WORDS FORMER GUERRILLA SUPPORTERS USE WHEN DESCRIBING THEIR CURRENT ATTITUDE INTELLECTUALS FORMER SYMPATHIZERS FROM THE GUERRILLAS' GOLDEN ERA TODAY FIND THEMSELVES IN LIMBO THERE IS NO LOYALTY TO ANY CAUSE ANYMORE SAYS ENRIQUE SANTOS CALDERON ONE OF THE COUNTRY'S MOST INFLUENTIAL WRITERS WE ARE IN A PROCESS OF INTROSPECTION DUE TO THE CRISIS OF VALUES INDEED AFTER A TOTAL OF 30 YEARS OF FIGHTING THE COUNTRY IS BASICALLY THE SAME THE GAP BETWEEN RICH AND POOR HAS GROWN COLOMBIA'S GOVERNMENT TRIES FROM TIME TO TIME TO CLEANSE THE SYSTEM BUT OLD VICES ARE DEEPLY ROOTED A CORRUPT AND INEFFICIENT BUREAUCRACY STILL REIGNS SUPREME AFTER THREE DECADES OF REVOLT SOME OF THE GUERRILLAS HAVE COME IN FROM THE COLD THE LEGENDARY M19 REACHED AN ACCORD WITH THE GOVERNMENT IN 1990 ITS TOP LEADER THE BATTLESCARRED ANTONIO NAVARRO WOLF APPEARS TO BE COLOMBIA'S ROSS PEROT FACTOR IN NEXT YEAR'S PRESIDENTIAL ELECTIONS MR NAVARRO WILL REPRESENT A CURIOUS COALITION THAT INCLUDES SMALL PARTIES FROM THE MODERATE RIGHT AND EVEN SOME PROGRESSIVE ARMY OFFICERS HE IS WELLPOSITIONED TO GET THE MOST MILEAGE OUT OF COLOMBIANS' DISDAIN FOLLOWING A WORLDWIDE TREND FOR ALL ESTABLISHED POLITICAL PARTIES BUT IF THE POPULAR OPINION OF GOVERNMENT LEADERS HAS NOT IMPROVED RECENT POLLS SHOW THAT THE GUERRILLAS' IMAGE HAS NOSEDIVED MOST COLOMBIANS COMPARE THE GUERRILLAS TO NARCOTERRORISTS AND PARAMILITARY KILLERS INDEED ACCORDING TO WIDELYPUBLISHED OFFICIAL REPORTS THE DIFFERENT REBEL MOVEMENTS HAVE BECOME POWERFUL BUSINESSES DEDICATED TO KIDNAPPINGFORRANSOM EXTORTION AND EVEN DRUG TRAFFICKING HAVING LOST MOST OF THE POOL OF VOLUNTEERS THAT ONCE CAME FROM UNIVERSITIES REBEL RECRUITING IS DONE MORE AMONG IMPOVERISHED PEASANTS AND THE URBAN POOR FOR WHOM BEING A GUERRILLA OFFERS AN IDENTITY AND A SALARIED LIVELIHOOD HOWEVER PEASANT DISDAIN FOR THE GUERRILLAS IS NOW OFTEN HIGHER THAN THAT OF THE URBAN INTELLECTUALS BECAUSE THE POOR HAVE MORE TO LOSE PEASANT FAMILIES ARE TIRED OF GIVING THEIR CHICKENS THEIR CROPS AND THEIR SONS TO THE VARIOUS GUERRILLA FRONTS WHAT WERE ONCE ACCEPTED AS REVOLUTIONARY ACTS THE FREQUENT DESTRUCTION OF OIL PIPELINES KIDNAPPINGS OF BUSINESSMEN POLITICIANS OR WEALTHY CATTLERANCHERS TAXES LEVIED ON RICH FARMERS TO PUNISH EXPLOITERS OF THE PEOPLE HAVE LOST THEIR IDEOLOGICAL CONTENT AND ARE NOW RECOGNIZED AS SIMPLE CRIMINAL ACTS THE GUERRILLAS' FALL FROM GRACE HAS BEEN ACCELERATED BY MANY FACTORS AMONG THEM THE LINKS OF SOME GUERRILLA GROUPS TO DRUG TRAFFICKING LAST YEAR'S TERRORIST ATTACKS AGAINST URBAN POPULATIONS IN THEIR STREETS AND HORRIFYING INTERNAL PURGES AGAINST DISSIDENTS WITHIN THEIR OWN ORGANIZATIONS ONE OF THEIR MOST RECENT ACTIONS THE KIDNAPPING AND MURDER OF A SPANISH PRIEST REVERED IN IMPOVERISHED TOWNS ALONG COLOMBIA'S NORTHERN COAST HAS ENRAGED THE ENTIRE COUNTRY THERE ARE ALSO CHARGES OF A GUERRILLA PLOT TO KILL THE PRESIDENT AND SELECTED MEMBERS OF HIS CABINET MEANWHILE THE FEW EFFORTS AT RENEWED DIALOGUE SHOW THAT TALK OF PEACE WAS REALLY SLEIGHTOFHAND BEHIND THE RHETORIC ON BOTH SIDES LAY A DESIRE TO WIPE EACH OTHER OUT SO ONCE AGAIN DESPITE OUR WEARINESS OF VIOLENCE COLOMBIANS HAVE CHOSEN TO BELIEVE THAT THE ONLY SOLUTION IS THE BULLET BUT THE ARMY'S FIREPOWER MAY NOT BE ALL THAT NECESSARY IN OVERCOMING THE GUERRILLA CHALLENGE PERHAPS EVEN FIDEL CASTRO'S INTERVENTION IS UNNECESSARY AS AN ALTERNATIVE FOR A COUNTRY WITHOUT MANY AT HAND THE CONTINENT'S LAST CLASSIC REVOLUTIONARIES APPEAR WELL ON THEIR WAY TO SELF DESTRUCTION MS RODRIGUEZ IS A COLOMBIAN JOURNALIST LIVING IN MEXICO CITY 9308200034 930820 THIS BREED OF RODENT IS BECOMING A PEST AT MAJOR LAW FIRMS AN UNDERGROUND NEWSLETTER SOPHOMORIC BUT BITING TAPS INTO ASSOCIATES' ANGST BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL EVERYBODY LOVES LAWYERBASHING EXCEPT LAWYERS RIGHT THEN AGAIN MAYBE THERE ARE NO EXCEPTIONS THOUSANDS OF YOUNG ATTORNEYS THESE DAYS ARE HUDDLING AROUND FAX MACHINES TO DEVOUR NOT LEGAL BRIEFS BUT THE LATEST ISSUE OF A SCATHING UNDERGROUND NEWSLETTER FOR LAWFIRM ASSOCIATES CALLED THE RODENT PUBLISHED BY TWO CALIFORNIA LAWYERS THE OFTEN SOPHOMORIC ALWAYS BITING MONTHLY IS ACHIEVING CULT STATUS THANKS TO REGULAR FEATURES LIKE LAW FIBS WHEN A PARTNER SAYS THE FIRM HAS A GOOD WORKING ENVIRONMENT AND YOU WILL HAVE AN EXCELLENT CHANCE TO MAKE PARTNER HE MEANS YOU WILL BE WORKED TO DEATH FOR THREE OR FOUR YEARS AND THEN FIRED SUBTLE IT ISN'T THE TWOPAGE RODENT PRINTED ON CHEAP PAPER AND TYPESET ON A PERSONAL COMPUTER REGULARLY LAMPOONS PARTNERS FOR OVERBILLING THEIR CLIENTS AND OVERWORKING THEIR ASSOCIATES A RECENT ISSUE FEATURED A MONOPOLYSTYLE GAME CALLED PARTNERSHIP WITH THE PRIZE A SIXFIGURE INCOME DIVORCE TRIPLE BYPASS AND RESENTMENT OF COLLEAGUES AND CHILDREN THE NEWSLETTER'S LATEST SLOGAN PROMOTING HATE CRIMES AGAINST LAWYERS SINCE 1991 IS THE RODENT JUST A HARMLESS PEST NOT EVERYONE IS SO SURE AT A TIME WHEN BOTH REVENUE AND MORALE ARE DEPRESSED AT MANY LAW FIRMS AND JUNIOR LAWYERS ARE PRESSURED TO WORK HARDER THAN EVER THE RODENT SUGGESTS THAT A MUCH DEEPER DISCONTENT IS GNAWING AWAY AT MANY YOUNG LAWYERS MANY OF THEM ENTERED THE PROFESSION WITH VISIONS OF PUBLIC SERVICE AND COMMUNITY RESPECT OR AT LEAST OF MAKING SCADS OF MONEY AND RETIRING RICH NOW FIRMS THAT USED TO WOO THEM WITH EXPENSIVE DINNERS AND BROADWAY SHOWS ARE FIRING MANY OF THEM INSTEAD IN THE PAST FEW YEARS THE TURNOVER RATE AT SOME LARGE LAW FIRMS HAS DOUBLED LAWFIRM CONSULTANTS ESTIMATE IN AN INFORMAL POLL BY CALIFORNIA LAWYER MAGAZINE LAST YEAR 70 OF LAWYERS SAID THEY WOULD START A NEW CAREER IF THEY COULD A 1990 AMERICAN BAR ASSOCIATION SURVEY INDICATED THAT 23 OF ALL LAWYERS AND ABOUT A THIRD OF ASSOCIATES ARE DISSATISFIED DESPITE AVERAGE BIGFIRM STARTING SALARIES OF 70000 A YEAR THE RODENT IS MAILED FREE TO ABOUT 1350 PEOPLE BUT VIA FAX AND INTEROFFICE MAIL IT REACHES THOUSANDS MORE INFILTRATING THE HIGHRISE WARRENS HOUSING THE NATION'S MOST PRESTIGIOUS FIRMS IT RECEIVES DOZENS OF LETTERS A MONTH FROM MISERABLE ASSOCIATES W SCARTH CLARK OF CORPUS CHRISTI TEXAS CALLED HIMSELF A SLAVE A GREAT FALLS VA LAWYER IDENTIFIED HERSELF AS A LAYOFF VICTIM OF ONE OF DC'S MOST VILE LITIGATION SWEATSHOPS WHILE THE NEWSLETTER'S HUMOR TENDS TOWARD THE TASTELESS ONE ISSUE JOKINGLY PROMISED ALAN DERSHOWITZ NUDE A FOURTEEN PAGE PICTORIAL SOME SAY EVEN A CRUDE ATTEMPT TO TWEAK THE LEGAL ESTABLISHMENT IS A HEALTHY SIGN I THINK IT'S GREAT THAT THIS IS HAPPENING SAYS DUNCAN KENNEDY AN ICONOCLASTIC HARVARD LAW SCHOOL PROFESSOR WHO HAS JUST WRITTEN A BOOK THAT ADVOCATES OVERTHROWING THE TRADITIONAL LAWFIRM STRUCTURE THE SLIGHTEST HINT OF REBELLION EVEN IF IT ISN'T VERY POLITICAL OR EVEN VERY FUNNY CAN REALLY FREAK OUT THE HALL MONITORS OF IDEOLOGICAL CONFORMITY THE LAWYERS BEHIND THE RODENT WEREN'T EXACTLY TRYING TO SPARK A REBELLION WHEN THEY STARTED THEIR SAMIZDAT THREE YEARS AGO THEY WERE JUST TRYING TO ALLEVIATE THEIR MISERY TAKING ON THE PEN NAMES BEAV AND MICK FOR TWO RODENTS A BEAVER AND MICKEY MOUSE THE AUTHORS NOW 30 AND 34 YEARS OLD PUT OUT THEIR FIRST ISSUE WHILE WORKING TOGETHER AS HARRIED ASSOCIATES IN THE LOS ANGELES OFFICE OF CHICAGO'S BAKER & MCKENZIE THEY CHOSE THE NAME BOTH BECAUSE THE RODENT IS A PEST AND BECAUSE THAT'S WHAT WE FELT WE WERECLASSIC MICE ON A TREADMILL GOING ROUND AND ROUND SAYS BEAV AT FIRST THE YOUNG AUTHORS FURTIVELY MADE PHOTOCOPIES AT THE FIRM AT FIVE IN THE MORNING AND DIVULGED THEIR IDENTITIES ONLY TO THE MAILROOM CLERK AND A FEW FRIENDS BUT THEN BAKER & MCKENZIE STARTED TRACKING ITS COPIER COSTS BY COMPUTER LUCKILY FOR THE RODENTS THEY WERE ABLE TO OBTAIN THE IDENTIFICATION CODES OF SEVERAL SENIOR PARTNERS AND AN ATTEMPT TO TRACE A LARGE NUMBER OF UNAUTHORIZED COPIES LED STRAIGHT TO THOSE PARTNERS' CUSHY OFFICES AFTER THE COPIER INCIDENT THE FIRM UNCOVERED THE IDENTITY OF ONE RODENT WHO WAS SENT TO WORK OVERSEAS FOR EIGHT MONTHS THE FIRM SAYS THE TRANSFER WAS UNRELATED PUBLICATION TEMPORARILY CEASED UNTIL BOTH AUTHORS LEFT BAKER & MCKENZIE ONE IS NOW AN ASSOCIATE AT ANOTHER CALIFORNIA FIRM WHILE THE OTHER NOW WORKS IN GOVERNMENT RELATIONS BECAUSE THEY HAPPEN TO LIKE BEING EMPLOYED BOTH AGREED TO TALK ONLY IF THEY WEREN'T NAMED SINCE GOING NATIONAL TWO YEARS AGO THE RODENT CAN HARDLY KEEP UP WITH DEMAND EACH ISSUE COSTS ABOUT 460 IN PRINTING AND POSTAGE WHICH THE AUTHORS HAVE BEEN PAYING OUT OF THEIR OWN POCKETS THEY PROMISE TO START CHARGING FOR IT SOON THEY ALREADY DO OFFER A 200 SUBSCRIPTION FOR PARTNERS NOBODY HAS TAKEN THEM UP ON IT IN FACT A LOT OF PARTNERS DO NOT REALLY SEE THE HUMOR IN THE RODENT EVEN THOUGH THEY ARE NOT ITS ONLY TARGETS THE NEWSLETTER SKEWERS PARALEGALS AND SECRETARIES WITH EQUAL VIGOR ONE MOCK ARTICLE REPORTS THAT MICHAEL MILKEN ASKED TO BE RETURNED TO PRISON AFTER A STINT AT A LAW FIRM JUNK BOND KING SAYS HE'D RATHER BE A PRISONER THAN A PARALEGAL AND A RUNNING FEATURE CALLED THE FIRM PERSONALITY PROFILE DESCRIBES VARIOUS FUNCTIONARIES INCLUDING THE TYPICAL SENIOR EXECUTIVE SECRETARY WHO LIVES ALONE SINCE BLUDGEONING HER KITTEN TO DEATH STILL THE PARTNERS ARE THE ONES WHO CALL THE SHOTS AT LAW FIRMS AND SOME WOULD LIKE TO SEE THE RODENT EXTERMINATED AT THE PALO ALTO CALIF LAW FIRM WILSON SONSINI GOODRICH & ROSATI AN ASSOCIATE WHO DISTRIBUTED COPIES OF A RODENT PARODY OF A LAWYER'S BILL TO ALL HIS COLLEAGUES GOT A DRESSING DOWN LAST SUMMER FROM MANAGING PARTNER MARK BERTELSEN WE WERE SENSITIVE ABOUT THE ISSUE OF OVERBILLING FOR ALL THE OBVIOUS REASONS SAYS MR BERTELSEN WE DON'T DO THAT BUT TO HAVE SOMETHING LIKE THIS SENT OUT THIS WAY COULD BE EASILY MISUNDERSTOOD THE ASSOCIATE MICHAEL L PLATT HAS SINCE MOVED FOR UNRELATED REASONS TO ANOTHER FIRM AT LEAST ONE SAN FRANCISCO FIRM HAS BANNED THE RODENT FROM ITS OFFICE INEVITABLY SOME SUBSCRIBERS THEMSELVES ARE OUTGROWING THE PUBLICATION ONE OF THEM M CORY BROWN SENT A FORMAL LETTER ON FIRM STATIONERY AFTER HE WAS NAMED A PARTNER AT THE SAN DIEGO LAW FIRM HIGGS FLETCHER & MACK ASKING TO BE DROPPED FROM THE MAILING LIST HE DIDN'T BARGAIN ON THE RESPONSE THE RODENT PUBLISHED THE LETTER ON ITS FRONT PAGE BENEATH A MOCKING ARTICLE HEADLINED BROWN NAMED RODENT'S PERSON OF THE YEAR A FEW MONTHS LATER IN A FAKE AD FOR BERLITZ SPEAK LIKE A PARTNER IN SIX WEEKS THE NEWSLETTER ADDED AN ERSATZ ENDORSEMENT FROM MR BROWN I MADE PARTNER IN FIVE YEARS THANKS TO BERLITZ PARTNERESE SOMEDAY THOUGH WHAT SHOULD HAPPEN IF ONE OF THE FOUNDING RODENTS HIMSELF MAKES PARTNER THE AUTHOR WHO CALLS HIMSELF BEAV AND WHO IS INDEED ON THE PARTNERSHIP TRACK AT A CALIFORNIA LAW FIRM HAS ALREADY THOUGHT THIS ONE THROUGH WE'LL PROBABLY START A NEW EDITION ABOUT LAZY ASSOCIATES 9308200033 930820 JAPAN SHIPBUILDERS SIGN EXPORT CONTRACTS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE SHIPBUILDERS SIGNED EXPORT CONTRACTS IN JULY TO BUILD VESSELS WITH TOTAL TONNAGE OF 166 MILLION METRIC TONS 183 MILLION TONS UP NINEFOLD IN TONNAGE FROM A YEAR EARLIER THE JAPAN SHIP EXPORTERS' ASSOCIATION SAID THE FIGURES WERE THE HIGHEST MONTHLY LEVELS IN A DECADE FOR BOTH THE NUMBER OF VESSELS AND TONNAGE BUT IT IS A SINGLEMONTH PHENOMENON AN ASSOCIATION SPOKESMAN SAID CLIENTS WHO HAVE BEEN TAKING A WAITANDSEE STANCE AMID THE RISE OF THE YEN SINCE EARLY THIS YEAR DECIDED TO SIGN CONTRACTS IN JULY BECAUSE THEY COULDN'T DELAY THE COMPLETION OF SHIPS ANY LONGER THE SPOKESMAN SAID THE YEN IN JULY APPEARED UNLIKELY TO FALL BACK SIGNIFICANTLY IN THE NEAR TERM HE ADDED AS MOST OF THE CONTRACTS ARE PAYABLE IN YEN THE STRONGER CURRENCY MAKES JAPANESE SHIPS MORE EXPENSIVE FOR FOREIGN BUYERS 9308200032 930820 BUSINESS BRIEF CAMELOT CORP QUESTIONS ABOUT SEC FILING LEAD TO AUDITOR'S DISMISSAL CAMELOT CORP SAID IT FIRED ITS AUDITOR HEIN & ASSOCIATES SAYING THE FIRM FAILED TO SEND A REPRESENTATIVE TO A MEETING WITH THE COMPANY'S BOARD TO EXPLAIN WHY AN AUDITED ANNUAL REPORT HASN'T BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IT'S A VERY STRANGE BUSINESS SAID DANNY WETTREICH PRESIDENT OF THE DALLAS HOLDING COMPANY WE DO NOT HAVE AN EXPLANATION FROM THEM AS TO WHY THEY DIDN'T COMPLETE THE AUDIT HEIN & ASSOCIATES DIDN'T RETURN CALLS SEEKING COMMENT ON MONDAY CAMELOT SAID THE AUDITORS HADN'T YET RESOLVED SOME ACCOUNTING AND REPORTING ISSUES RELATED TO VARIOUS TRANSACTIONS CAMELOT ALSO CALLED OFF A PLANNED PROXY SOLICITATION TO REPLACE TYREX OIL CO DIRECTORS CAMELOT HOLDS A 5 STAKE IN TYREX WE FEEL IT'S INAPPROPRIATE TO DO THAT AT THIS TIME WITHOUT OUR 10K FILING BEING MADE MR WETTREICH SAID 9308200031 930820 HEALTH CARCINOGEN BAN FOR SOME FOOD MAY BE EASED BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BIG FOODSAFETY BATTLE OF THE 1990S HAS BEGUN THE FIGHT IS OVER A 1958 LAW THAN BANS CANCERCAUSING PESTICIDES EVEN IN THE MOST MINUTE AMOUNTS FROM PROCESSED FOODS THE ISSUE HAS BEEN AROUND FOR DECADES PITTING MOTHERS AGAINST CHEMICAL PRODUCERS AND FARMERS AGAINST ENVIRONMENTALISTS NOW THE CLINTON ADMINISTRATION IS WEIGHING IN WITH ITS SOLUTION EARLY NEXT MONTH IT PLANS TO PROPOSE CHANGES THAT WOULD ALLOW SOME OF THESE SUBSTANCES IN PROCESSED FOODS UNDER THE PLAN STRICT NEW STANDARDS WOULD BE SET FOR THE AMOUNT OF THE CANCERCAUSING SUBSTANCES IN BOTH PROCESSED FOOD AND RAW FOODS WHERE THEY ARE CURRENTLY ALLOWED THE WHITE HOUSE IS HOPING THAT ITS SOLUTION WILL PLACATE ALL SIDES BUT EARLY INDICATIONS SUGGEST IT WON'T ENVIRONMENTAL GROUPS ALREADY WERE COMPLAINING YESTERDAY THAT THE PROPOSED CHANGES WOULD UNDERMINE FOOD SAFETY REACTION FROM INDUSTRY AND FARM GROUPS TO A DRAFT OUTLINE OF THE PROPOSAL BEING CIRCULATED AMONG INTEREST GROUPS WAS MORE FAVORABLE BUT THEY ARGUED THAT FURTHER LOOSENING IS NEEDED ADMINISTRATION OFFICIALS CAUTIONED THAT THE DRAFT IS SUBJECT TO REVISION THE CHANGES ARE TO BE PART OF A BROAD PACKAGE AFFECTING PESTICIDE REGULATION OTHER PROVISIONS WOULD BAR THE EXPORT OF CHEMICALS THAT ARE BANNED IN THIS COUNTRY BOLSTER THE ABILITY OF THE ENVIRONMENTAL PROTECTION AGENCY TO PHASE OUT UNSAFE PESTICIDES AND PROMOTE THE USE OF SAFER PESTICIDES AND NONCHEMICAL ALTERNATIVES TO PEST CONTROL OFFICIALS HOPE THE WIDE RANGE OF THE PROPOSAL WILL SOFTEN OPPOSITION TO THE FOOD CHANGES BUT JAY FELDMAN EXECUTIVE DIRECTOR OF THE NATIONAL COALITION AGAINST THE MISUSE OF PESTICIDES BLASTED THE PROPOSALS AS SHORTSIGHTED HE ARGUED THAT IT ISN'T POSSIBLE TO DETERMINE A SAFE AMOUNT OF CANCERCAUSING SUBSTANCES TO ALLOW IN FOODS AND THAT THE PROPOSAL WOULDN'T ADEQUATELY TAKE INTO ACCOUNT THE PRESENCE OF SEVERAL PESTICIDE RESIDUES IN INDIVIDUAL FOODS OTHER GROUPS COMPLAINED THAT THE CLINTON PEOPLE WERE GIVING FUTURE ADMINISTRATIONS TOO MUCH LEEWAY TO DETERMINE ACCEPTABLE LEVELS OF CANCERCAUSING PESTICIDES IN FOOD AND THAT ITS OWN POLICY WOULDN'T SET A STRICT ENOUGH STANDARD FOR NONCARCINOGENIC PESTICIDES JEFFREY NEDELMAN A SPOKESMAN FOR THE GROCERY MANUFACTURERS OF AMERICA PRAISED THE PROPOSALS AS A GOOD FIRST STEP BUT HE CALLED FOR THE ADMINISTRATION TO SEEK A UNIFORM NATIONAL POLICY FOR PESTICIDE REGULATION REMOVING THE ABILITY OF STATES TO SET POLICIES THAT ARE TOUGHER THAN THE FEDERAL ONES UNDER THE ADMINISTRATION'S DRAFT THE EXISTING BAN ON CANCERCAUSING PESTICIDES THAT CONCENTRATE IN PROCESSED FOODS WOULD BE REPLACED BY A HEALTHBASED STANDARD THAT WOULD APPLY TO ALL FOODS AMONG OTHER GRIPES CRITICS OF THE EXISTING PROVISION HAVE COMPLAINED THAT IT SETS A DIFFERENT STANDARD FOR RAW FOOD AND PROCESSED PRODUCTS THE EPA FOR EXAMPLE CAN ALLOW MINUTE AMOUNTS OF A CANCERCAUSING SUBSTANCE TO BE PRESENT ON TOMATOES BUT IT CAN'T ALLOW EVEN MINUTE TRACES IN TOMATO SAUCE IN SETTING THE TOLERANCE LEVELS ON RAW FOOD THE EPA CAN CONSIDER SUCH ECONOMIC FACTORS AS THE BENEFITS TO GROWERS OR PESTICIDE PRODUCERS UNDER THE NEW UNIFORM APPROACH SUCH ECONOMIC BENEFITS WOULD NO LONGER BE TAKEN INTO ACCOUNT INSTEAD THE GOVERNMENT WOULD DETERMINE THE LEVEL AT WHICH THE SUBSTANCE POSED A NEGLIGIBLE RISK TO HUMAN HEALTH FOR CANCERCAUSING SUBSTANCES THAT WOULD BE THE LEVEL OF RESIDUES THAT WOULD LEAD TO ONE ADDITIONAL CANCER CASE FOR EVERY MILLION PEOPLE FOR SUBSTANCES THAT CAUSE OTHER HEALTH PROBLEMS REGULATORS WOULD DETERMINE THE LEVEL BELOW WHICH THERE ARE NO DETECTABLE ADVERSE EFFECTS IN LABORATORY ANIMALS THEN THEY WOULD INCREASE THE SAFETY FACTOR BY A HUNDREDFOLD THE ADMINISTRATION'S PROPOSALS ON THE SOCALLED DELANEY CLAUSE AS THE 1958 LAW IS KNOWN ARE IN PART A RESPONSE TO A FEDERAL APPEALS COURT DECISION LAST YEAR IN THAT CASE THE COURT IN SAN FRANCISCO STRUCK DOWN A BUSH ADMINISTRATION EFFORT TO BEGIN APPLYING A NEGLIGIBLERISK STANDARD TO PROCESSED FOOD WITHOUT FIRST GETTING THE DELANEY CLAUSE REPEALED THE PROPOSALS WILL JOIN OTHER LEGISLATION DEALING WITH THE PROVISION THOSE BILLS GENERALLY WOULD ALLOW MINUTE TRACES OF PESTICIDES IN PROCESSED FOODS BUT THEY VARY GREATLY AS TO HOW STRICT THE APPLICABLE SAFETY STANDARDS WOULD BE OTHER PROVISIONS IN THE DRAFT PACKAGE WOULD BAN THE EXPORT OF PESTICIDES THAT HAVE BEEN CANCELED IN THE US FOR HEALTH OR SAFETY CONCERNS THIS IS PARTLY DESIGNED TO CLOSE THE CIRCLE OF POISON UNDER WHICH BANNED PESTICIDES ARE EXPORTED FROM THE US AND THEN RETURN IN IMPORTED FOOD MAKE IT EASIER FOR THE EPA TO REMOVE DANGEROUS PESTICIDES FROM THE MARKETPLACE BY LOWERING THE BURDEN OF PROOF REQUIRED BEFORE THE AGENCY CAN ACT AGAINST A SUBSTANCE IT CONSIDERS HARMFUL ENCOURAGE PESTICIDE PRODUCERS TO KEEP SAFE PESTICIDES ON THE MARKET A 1988 LAW REQUIRES PRODUCERS TO SEEK NEW APPROVAL FOR MANY PESTICIDES ALREADY ON THE MARKET SOME CHEMICAL COMPANIES HAVE DECIDED AGAINST DOING SO FOR MANY MINORCROP PRODUCTS WITH LOWER SALES POTENTIAL RATHER THAN CONDUCTING THE COSTLY TESTS REQUIRED BY THE EPA IMPROVE THE GOVERNMENT'S DATA ON PESTICIDE USE BEEF UP THE EPA'S POWERS TO ENFORCE PESTICIDE LAW 9308200030 930820 CREDIT MARKETS LONG YIELD HITS A NEW LOW AS RALLY ROLLS ON AMID VERY VERY BIZARRE' GAP IN BENCHMARKS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A TOPSYTURVY DAY IN THE BOND MARKET ENDED WITH YIELDS OF MOST TREASURY MATURITIES DROPPING SHARPLY AS THE BOND MARKET RALLY PICKED UP STEAM THE BENCHMARK 30YEAR TREASURY BOND YIELD DROPPED TO 620 FROM 625 THAT'S THE LOWEST YIELD SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE NEARLY 3/4 POINT OR NEARLY 750 FOR A BOND WITH A 1000 FACE VALUE TO 100 19/32 THE 10YEAR NOTE YIELD FELL FROM 567 TO 561 THE LOWEST SINCE APRIL 1971 ITS PRICE ROSE MORE THAN 3/8 POINT TO 101 WHILE MOST TREASURY SECURITIES ENDED AT LOWER YIELDS FOR MOST OF THE DAY THE 30YEAR BOND WAS THE ONLY ONE MOVING EARLY IN THE DAY ITS PRICE WAS UP 3/4 POINT BUT BY EARLY AFTERNOON IT HAD GAINS OF 1/4 POINT THEN IT RALLIED BACK AGAIN AT DAY'S END AS THE 30YEAR BOND BOUNCED ABOUT TRADERS WERE SCRATCHING THERE HEADS AND TRYING TO FIGURE OUT WHAT WAS GOING ON THAT'S BECAUSE THE BENCHMARK 625 30YEAR BOND SOLD JUST LAST WEEK WAS OUTPERFORMING THE PREVIOUS BENCHMARK 7125 30YEAR BOND BY A HUGE MARGIN YESTERDAY THE 625 ISSUE WAS YIELDING NEARLY 017 PERCENTAGE POINT LESS THAN THE 7125 ISSUE SUCH A WIDE GAP IS RARE AND IT MAKES LIFE DIFFICULT FOR BOND TRADERS WHO COUNT ON ALL ISSUES OF THE 30YEAR BOND TRADING MUCH CLOSER TO EACH OTHER THIS IS VERY VERY BIZARRE SAID STEVEN WOOD DIRECTOR OF FINANCIAL MARKET RESEARCH AT BANK OF AMERICA OUR HEAD BOND TRADER IS ABOUT READY TO PULL HIS HAIR OUT HE ADDED IT'S AN EXTRAORDINARY SET OF CIRCUMSTANCES SAID J PATRICK ROTHSTEIN HEAD OF GOVERNMENT TRADING AT BEAR STEARNS & CO AND IT'S CREATING A LOT OF DISCREPANCIES AMONG DIFFERENT BOND ISSUES ONE OF THE PROBLEMS FACING TRADERS AND INVESTORS IS IN THE MARKET FOR BOND FUTURES CONTRACTS WHICH ARE AGREEMENTS TO BUY OR SELL BONDS AT SET PRICES ON SET DATES IN THE FUTURE THIS MARKET IS OFTEN USED BY TRADERS AND INVESTORS TO HEDGE AGAINST BETS IN THE CASH MARKET FOR TREASURY SECURITIES BUT THE WIDENING YIELD GAP BETWEEN THE NEW 30YEAR BOND AND THE OLD ONE HAS SPURRED A SIMILAR WIDENING OF THE YIELD SPREAD BETWEEN THE NEW BOND AND BOND FUTURES CONTRACTS IT HAS WREAKED HAVOC ON THOSE TRYING TO USE FUTURES AS A HEDGE THAT SPREAD KNOWN AS THE BASIS HAS UNDERGONE A POWERFUL TRANSITION IN THE PAST TWO WEEKS SURGING FROM ABOUT 1 26/32 POINTS WITH THE OLD 7125 BOND A FEW WEEKS AGO TO 7 1/32 POINTS ON THE NEW 625 BOND YESTERDAY THE WIDENING SPREAD HAS MADE IT INCREASINGLY DIFFICULT AND EXPENSIVE TO USE THE FUTURES MARKET AS A HEDGE OR INSURANCE AGAINST RISING YIELDS IN THE CASH MARKET FROM THE BEGINNING OF JULY IF YOU COMPARED WHAT YOU NEED TO HEDGE 100 MILLION BACK THEN WITH WHAT YOU NEED NOW WHAT YOU NEED IS ABOUT A 25 INCREASE IN THE AMOUNT OF FUTURES THAT YOU NEED TO SHORT SAID JOE MULLALLY A FIXEDINCOME STRATEGIST AT FIRST BOSTON CORP A SHORT IS WHEN A TRADER SELLS A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE NEWS OF MUNICIPAL DEFEASANCE PROGRAMS FURTHER FUELED THE RALLY AMONG SHORTERTERM ISSUES WITH INTEREST RATES DROPPING MANY MUNICIPALITIES ARE RUSHING TO LOCK IN LOWER RATES BEFORE CALLING OLDER HIGHERYIELDING BONDS IN A DEFEASANCE PROGRAM WHEN THE BONDS ARE NOT YET CALLABLE MUNICIPALITIES INVEST PROCEEDS FROM NEW BOND OFFERINGS IN TREASURY SECURITIES WITH SIMILAR MATURITIES ALSO FUELING THE RALLY WAS THE GOVERNMENT'S REPORT ON THE US TRADE DEFICIT IN JUNE WHICH REACHED 1206 BILLION WELL ABOVE WHAT MOST ECONOMISTS FORECAST BOND MARKET TRADERS INTERPRETED THE REPORT AS SUGGESTING EVEN SLOWER ECONOMIC GROWTH IN THE SECOND QUARTER THAN BELIEVED TRADERS AND ANALYSTS SAID THE TRADE DATA INDICATED THERE COULD BE A SIGNIFICANT DOWNWARD ADJUSTMENT TO PRELIMINARY DATA ON SECONDQUARTER GROWTH IN THE GROSS DOMESTIC PRODUCT WHICH WAS REPORTED TO HAVE GROWN AT A 16 ANNUAL RATE ASIDE FROM THE ECONOMIC REPORTS EXTREMELY STRONG DEMAND FOR LONGTERM TREASURY SECURITIES CONTINUE TO BUILD MUCH OF IT HAS COME FROM SPECULATORS LOOKING TO PROFIT FROM THE NARROWING YIELD GAP BETWEEN THE 30YEAR BOND AND SHORTERTERM SECURITIES ONE WAY OF PROFITING FROM THE NARROWING GAP IS TO BUY THE 30YEAR BOND AND SELL SHORTERTERM SECURITIES ANOTHER FACTOR PREVALENT IN PAST WEEKS HAS BEEN THE RUSH OF MONEY MANAGERS TO INVEST THE FLOODS OF MONEY BEING PUMPED INTO BOND FUNDS BY INVESTORS SEARCHING FOR HIGHER YIELDS FACED WITH DROPPING YIELDS AND CASH THAT NEEDS TO BE INVESTED IMMEDIATELY THESE MANAGERS NEED TO INCREASE THE AVERAGE MATURITIES OF THEIR FUNDS IN ORDER TO BOOST RETURNS MANY OF THEIR HIGHERYIELDING SECURITIES HAVE BEEN CALLED BY ISSUERS LOOKING TO REFINANCE AT LOWER RATES BECAUSE OF ITS LIQUIDITY THE 30YEAR TREASURY BOND IS A POPULAR PLACE TO INVEST FOR THESE MONEY MANAGERS THE REDUCTION OF 30YEAR BOND AUCTIONS FROM FOUR PER YEAR TO TWO HAS EXACERBATED DEMAND MEANWHILE THE TREASURY SOLD 1528 BILLION OF ONEYEAR BILLS HERE ARE THE RESULTS OF THE SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED AUG 26 AND MATURE AUG 25 1994 COMPANIES TOOK A BREATHER FROM THE FURIOUS ISSUANCE PACE SEEN EARLIER THIS WEEK AND OFFERED ONLY THREE INVESTMENTGRADE ISSUES FOR A TOTAL OF 300 MILLION ON TUESDAY AND WEDNESDAY MORE THAN 7 BILLION OF NEW CORPORATE BONDS HIT THE MARKET BUT MARKET WATCHERS SEE THE SLOWDOWN AS ONLY TEMPORARY WITH RATES AT LEVELS THAT CORPORATIONS CAN HARDLY IGNORE I SUSPECT THE NEXT COUPLE WEEKS WILL BE ACTIVE ONES SAID JOHN MALVEY CORPORATE STRATEGIST AT LEHMAN BROTHERS INC IN SECONDARY TRADING CONFUSION PERSISTS OVER WHICH BENCHMARK TO USE TO PRICE BONDS WITH 30YEAR MATURITIES THE NEW 30YEAR BOND SOLD LAST THURSDAY IS TRADING TO YIELD 620 BUT THE MARKET CONSENSUS IS THAT AT SUCH LEVELS THE NEW BOND IS NOT A GOOD BAROMETER OF THE LONGTERM COST OF CAPITAL SAID MR MALVEY THERE IS LESS DISTORTION WITH THE SEASONED 7125 30YEAR BOND WHICH YIELDED 637 YESTERDAY ASIDE FROM CONFUSION AMONG LONGERDATED ISSUES PRICES OF INVESTMENTGRADE BONDS WERE GENERALLY UNCHANGED JUNK BOND ISSUES WERE UNCHANGED TO UP 1/4 POINT ONE UTILITY BOND OFFERED YESTERDAY FROM POTOMAC ELECTRIC POWER CO OF WASHINGTON DC WAS PRICED OFF THE NEW 30YEAR BOND BY FIRST BOSTON CORP FIRST BOSTON WON THE RIGHT TO ISSUE THE BONDS IN A COMPETITIVE BID MEANING IT WAS THE FIRM THAT OFFERED PEPCO THE LOWEST YIELD THE 100 MILLION ISSUE OF 30YEAR FIRST MORTGAGE BONDS CAME WITH A 6875 COUPON AT A PRICE OF 9844 TO YIELD 7 BY PRICING OFF THE NEW BOND FIRST BOSTON COULD OFFER PEPCO A YIELD THAT WAS ABOUT 017 PERCENTAGE POINT LESS THAN IF THE ISSUE HAD BEEN PRICED OFF THE SEASONED 30YEAR TREASURY BOND MAKING IT EASIER FOR FIRST BOSTON TO OFFER A LOW BID PRICES OF MUNICIPAL BONDS ENDED NARROWLY MIXED CLOSING 1/8 POINT LOWER TO 3/8 HIGHER WHILE BUYING WASN'T ALL THAT HEAVY THE MOOD ABOUT MUNICIPALS IS STILL POSITIVE AND THE MARKET'S FORTUNES ARE EXPECTED TO REMAIN QUITE FAVORABLE IN THE WEEKS AHEAD IN SECONDARY TRADING THE 550 REVENUE BONDS DUE 2023 FROM THE REGIONAL AIRPORT AUTHORITY OF LOUISVILLE AND JEFFERSON COUNTY KENTUCKY FINISHED UNCHANGED AT 97 1/2 TO YIELD 567 HOWEVER THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 525 REFUNDING BONDS OF 2021 ENDED 1/8 HIGHER AT 98 1/8 TO YIELD 535 IN PRIMARY DEALINGS THE LARGEST ISSUE PRICED YESTERDAY WAS THE MICHIGAN BUILDING AUTHORITY'S 4901 MILLION OF SERIES I OF 1993 REVENUE REFUNDING BONDS A MORGAN STANLEY & CO GROUP GAVE THE BONDS YIELDS THAT RANGED FROM 230 IN OCTOBER 1993 TO 545 IN 2016 INCLUDED IN THE ISSUE ARE 4736 MILLION OF SERIAL AND TERM BONDS AND 165 MILLION OF SPECIAL SINKINGFUND BONDS SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT RATED 134 BILLION OF NEWISSUE MUNICIPAL VOLUME DURING THE FIRST HALF OF THE YEAR NEARLY 55 BILLION OR 41 OF THAT ISSUANCE WAS INSURED THAT WAS A RECORD INSURED DOLLAR AMOUNT THE RATING AGENCY SAID CURRENTCOUPON MORTGAGE SECURITIES ENJOYED BETTER BUYING INTEREST YESTERDAY BUT SOME OTHER SECTORS OF THE MARKET FELL VICTIM TO RATE CONCERNS THE CURRENT COUPONS ARE TIGHTENING NOTED RANDY MERK HEAD OF TAXABLE PORTFOLIOS AT BENHAM GROUP A MUTUAL FUND CONCERN THAT'S A WAY OF SAYING THOSE SECURITIES NOW BEING SOLD INTO THE SECONDARY MARKET BY MORTGAGE BANKERS SUCH AS THE 65 COUPONS ARE BECOMING WORTH MORE IN RELATION TO TREASURYS SOME INVESTORS ARE SELLING SOME HIGHERCOUPON ISSUES CONSIDERED AT RISK OF BEING PREPAID DUE TO FALLING INTEREST RATES AND INSTEAD ARE BUYING THE LOWERCOUPON SECURITIES PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID FOR EXAMPLE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR SEPTEMBER DELIVERY ENDED 15/32 HIGHER AT 100 22/32 THE 9 MORTGAGE SECURITIES MEANWHILE FINISHED 2/32 LOWER AT 3/32 AMONG OTHER CURRENT COUPONS FOR SEPTEMBER DELIVERY FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES AND FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES BOTH FINISHED 15/32 HIGHER AT 100 18/32 AND 100 24/32 RESPECTIVELY 9308200029 930820 BUSINESS BRIEF CELUTEL INC CENTURY TELEPHONE WILL PAY ABOUT 105 MILLION FOR STOCK CENTURY TELEPHONE ENTERPRISES INC SAID IT AGREED TO ACQUIRE THE STOCK OF CELUTEL INC FOR ABOUT 105 MILLION IN CASH AND STOCK AND THE ASSUMPTION OF 40 MILLION OF CELUTEL'S DEBT BASED IN MONROE LA THE TELECOMMUNICATIONS CONCERN SAID IT WILL PAY HALF THE PURCHASE PRICE IN CASH AND HALF IN STOCK THE NUMBER OF SHARES WILL BE BASED ON AN AVERAGE OF ITS CLOSING PRICE FOR A 10DAY PERIOD PRIOR TO THE TRANSACTION'S CLOSING THE TRANSACTION IS SUBJECT TO APPROVAL OF CELUTEL SHAREHOLDERS AND REGULATORS CENTURY SAID IT EXPECTS THE ACQUISITION TO DILUTE ITS EARNINGS BY NINE CENTS TO 11 CENTS A SHARE IN 1994 CELUTEL PROVIDES CELLULAR TELEPHONE SERVICE TO 20000 CUSTOMERS IN MISSISSIPPI AND TEXAS 9308200028 930820 NASD PUNISHES 12 COMPANIES FOR INFRACTIONS INDIVIDUALS ALSO DISCIPLINED WITH FINES SUSPENSIONS FOR SECURITIES VIOLATIONS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID IT DISCIPLINED 12 COMPANIES AND SEVERAL INDIVIDUALS FOR VIOLATING ITS RULES AND SECURITIES LAWS ADAMS SECURITIES INC LAS VEGAS WAS EXPELLED FOR SELLING STOCK TO CUSTOMERS AT UNFAIR PRICES INCLUDING MARKUPS RANGING FROM ABOUT 5 TO 88 SEVERAL INDIVIDUALS FROM ADAMS WERE DISCIPLINED JAMES WILLIAM ADAMS A PRINCIPAL FROM HENDERSON NEV WAS BARRED MICHAEL R WALDMAN ALSO FROM HENDERSON WAS FINED 19000 JOHN BASSELL HAYDEN CHICO CALIF WAS FINED 12935 AND MARK DAVID LONG DENVER WAS FINED 13408 TRIPARK SECURITIES INC CHAPEL HILL NC WAS EXPELLED AND FINED 15000 FOR NOT UPHOLDING CERTAIN ASPECTS OF A PRIVATE PLACEMENT MEMORANDUM FOR THREE OFFERINGS OF LIMITED PARTNERSHIP INTERESTS PRINCIPAL JEFFREY R BOAK ALSO OF CHAPEL HILL WAS BARRED HUTCHISON FINANCIAL CORP BASED IN PHOENIX AND NOW KNOWN AS PRINCETON AMERICAN EQUITIES CORP WAS FINED 25000 AND SUSPENDED FOR SIX DAYS FOR FAILING TO MAINTAIN MINIMUM NET CAPITAL AND FILING INACCURATE REPORTS THE ACTION HAS BEEN APPEALED TO A US COURT OF APPEALS AND A STAY WAS GRANTED FOLLOWING THE TERM OF THE SUSPENSION IN MIDJULY UNLESS OTHERWISE NOTED FIRMS AND INDIVIDUALS COULDN'T BE REACHED OR HAD NO COMMENT CENPAC SECURITIES CORP AND PRINCIPAL GERALD NELSON BOVEE BOTH OF PHOENIX WERE JOINTLY AND SEVERALLY FINED 20000 AND MR BOVEE WAS SUSPENDED FOR 10 DAYS FOR FAILING TO MAINTAIN MINIMUM NET CAPITAL AND FILING INACCURATE REPORTS FIRST AMERICAN BILTMORE SECURITIES INC AND PRINCIPAL J GORDON NEVERS BOTH OF PHOENIX WERE JOINTLY AND SEVERALLY FINED 25000 AND REQUIRED TO PAY RESTITUTION OF 98978 PLUS INTEREST MR NEVERS WAS SUSPENDED 30 DAYS NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM NET CAPITAL AND CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS AND MARKDOWNS RANGING FROM ALMOST 8 TO 52 ABOVE OR BELOW PREVAILING MARKET PRICES FIRST INLAND SECURITIES INC SPOKANE WASH AND PRINCIPAL GLEN LAMOYNE OTTMAR BOTHELL WASH WERE JOINTLY AND SEVERALLY FINED 5000 AND REQUIRED TO PAY 29393 IN RESTITUTION TO CUSTOMERS THE FIRM CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS RANGING FROM 15 TO 57 OVER THE PREVAILING MARKET PRICE NASD SAID THE ACTION HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION THE NASD ALSO DISCIPLINED JW GANT & ASSOCIATES INC OF ENGLEWOOD COLO CHARLES F KIRBY OF LITTLETON COLO AND JAMES PATRICK DRIVER OF ENGLEWOOD THE FIRM WAS FINED 125000 JOINTLY AND SEVERALLY WITH ONE INDIVIDUAL FINED ANOTHER 125000 JOINTLY AND SEVERALLY WITH ANOTHER INDIVIDUAL AND FINED 62500 JOINTLY AND SEVERALLY WITH A THIRD THE FIRM WAS ALSO REQUIRED TO PAY 687500 IN RESTITUTION JOINTLY AND SEVERALLY WITH AN INDIVIDUAL TO CUSTOMERS MR KIRBY WAS FINED 5000 JOINTLY AND SEVERALLY AND SUSPENDED FIVE DAYS MR DRIVER MADE AN OFFER OF SETTLEMENT RESULTING IN A FINE OF 10000 AND A 30DAY SUSPENSION NASD SAID THE FIRM RESTRICTED COMPETITION BY CONTROLLING THE MARKET IN A STOCK CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS RANGING FROM ABOUT 5 TO 84 OVER THE PREVAILING MARKET PRICE AMONG OTHER CHARGES LA JOLLA SECURITIES CORP AND PRINCIPAL BRUCE ALAN BIDDICK BOTH OF LA JOLLA CALIF WERE JOINTLY AND SEVERALLY FINED EACH RESPONSIBLE FOR THE FULL AMOUNT 11475 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS THAT THE FIRM FAILED TO APPROVE CERTAIN ACCOUNTS BEFORE STOCK TRANSACTIONS AND FAILED TO RECEIVE WRITTEN AGREEMENTS MR BIDDICK SAID HE HAD BEEN UNAWARE OF THE IMPROPRIETIES AND HAD TO TAKE THE FALL FOR TWO FORMER EMPLOYEES PENALIZED BY THE NASD BECAUSE HE WAS IN A SUPERVISORY ROLE SECURITIES AMERICA INC OMAHA NEB WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT IT FAILED TO ADEQUATELY SUPERVISE BROKERS AND BROKER CHARLES FELIX TUMMINO ROGUE RIVER ORE WAS FINED 39139 FOR DISTRIBUTING A SALES BROCHURE THAT FAILED TO DISCLOSE MATERIAL FACTS AND MADE POTENTIALLY MISLEADING CLAIMS AMONG OTHER CHARGES NASD SAID MR TUMMINO CHARGING THAT THE FINE WAS RIDICULOUS SAID THE BROCHURE WAS NOT AN INVESTMENT PROSPECTUS BUT PROVIDED INFORMATION ABOUT THE PREMIUM FINANCING INDUSTRY AND THAT HE HAD BEEN MISLED BY THE FIRM THAT PUBLISHED IT ATLANTA SECURITIES & INVESTMENTS INC ATLANTA WAS FINED 70000 JOINTLY AND SEVERALLY WITH OTHER INDIVIDUALS AND REQUIRED TO PAY 118300 IN RESTITUTION PLUS INTEREST TO CUSTOMERS NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM NET CAPITAL FAILED TO MAKE CERTAIN RECORDS SOLD SHARES AT UNFAIR PRICES WITH MARKUPS EXCEEDING 128 AND PERMITTED AN INDIVIDUAL TO FUNCTION AS PRESIDENT AND SALES REPRESENTATIVE WITHOUT PROPER REGISTRATION AMONG OTHER CHARGES DOMINICK & DOMINICK INC NEW YORK WAS FINED 50000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT IT FAILED TO PROVIDE PROPER SUPERVISION OF TWO BROKERS THE FIRM SAID IT ACCEPTED NASD'S FINDINGS TO AVOID THE TIME AND COST REQUIRED TO DEFEND ITSELF THE FIRM SAID IT MADE RESTITUTION TO AFFECTED CUSTOMERS AT THE TIME THE EVENT WAS DISCOVERED IN 1991 TOUCHSTONE CAPITAL CORP DALLAS WAS FINED 20000 AND REQUIRED TO DISGORGE 16122 IN COMMISSIONS PAID TO AN UNREGISTERED SALESMAN THE FOLLOWING INDIVIDUALS WERE DISCIPLINED HENRY WILLIAM ABTS III LOS ANGELES FINED 15000 AND SUSPENDED 90 DAYS THERON HUGH MURPHY SIMI VALLEY CALIF FINED 5000 AND SUSPENDED 30 DAYS JAY LYNN MURPHY SIMI VALLEY FINED 10000 AND SUSPENDED 45 DAYS DONALD C ALAIMO MT LAUREL NJ FINED 20000 AND BARRED CHARLES KING BALDWIN CHARLOTTE NC FINED 26250 BARRED AND ORDERED TO PAY 1250 IN RESTITUTION TO A CUSTOMER ROBERT J BERRY SEWELL NJ FINED 30000 AND BARRED WILLIAM BEZEMER GILCHING GERMANY FINED 10000 AND SUSPENDED FIVE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS BRIAN J BONNER CORAL SPRINGS FLA FINED 10926 AND BARRED LARRY E BREWER GERMANTOWN TENN FINED 13500 AND SUSPENDED A WEEK WITHOUT ADMITTING OR DENYING ALLEGATIONS DON ALLEN BURK DELRAY BEACH FLA FINED 20000 AND BARRED AND TIMOTHY L BURKES PLEASANTON CALIF FINED 16200 AND SUSPENDED 180 DAYS MR BURKES HAS APPEALED THIS ACTION TO A US APPEALS COURT ALSO DOUGLAS DUANE CHAPMAN SALINA KAN WAS FINED 5000 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS KENNETH R CLARK LARAMIE WYO FINED 5000 AND SUSPENDED FIVE DAYS RICHARD A CROSBY DENVER FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GARY L CUNNINGHAM MONTE VISTA COLO FINED 3800 AND BARRED ANTOINE DOUMAD RANCHO CALIF FINED 70000 AND BARRED CYRUS B FOLLMER JR GREENVILLE NC FINED 50000 BARRED AND REQUIRED TO PAY 53000 IN RESTITUTION TO CUSTOMERS ANDREW H GEYER KINGS PARK NY FINED 5000 AND SUSPENDED FIVE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS CASEY KAREN GREEN HUNTINGTON BEACH CALIF FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GILBERT M HAIR NEWBURY PARK CALIF FINED 13250 VLADIMIR CHORNY CAMARILLO CALIF FINED 18500 MR CHORNY SAID HE REGISTERED A TRANSACTION TWO WEEKS LATE BUT DIDN'T HAVE ANY INTENTION TO VIOLATE ANYTHING HAROLD B HAYES PLEASANT HILL CALIF WAS FINED 300000 AND BARRED BUT SAID HE HAS APPEALED THE DECISION TO THE SEC STEPHEN F HINCH CHARLOTTE NC FINED 250000 BARRED AND REQUIRED TO PAY RESTITUTION OF 99673 PLUS INTEREST TO HIS MEMBER FIRM JOHN M HULLEY GRAFTON WVA WAS FINED 15000 AND BARRED MICHAEL J JANIK CHERRY HILL NJ FINED 10000 AND SUSPENDED 20 DAYS JOHN EARL LAW MORGAN TEXAS FINED 50000 BARRED AND REQUIRED TO PAY 657886 IN RESTITUTION TO HIS FIRM AND CUSTOMERS WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE CONVERTED FUNDS TO HIS OWN USE ADAM STUART LEVINE NEW YORK FINED 40000 AND BARRED ELLEN LAPIN MARGARETTEN NORTH MIAMI FLA FINED 10000 AND SUSPENDED 90 DAYS CALVIN THOMAS MCKIBBEN DALLAS FINED 2500 AND SUSPENDED 30 DAYS HECTOR CRISTOBAL CARRENO DALLAS FINED 10000 AND SUSPENDED 30 DAYS PAUL A MOCHINAL ARLINGTON VA FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS CHARLES FRANCES MOLNAR LAWRENCEVILLE GA FINED 3500 AND SUSPENDED THREE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS RAYMOND EDWARD MOORE SANTA ROSA CALIF FINED 20000 AND SUSPENDED 30 DAYS JOHN R MOYSEY GREAT FALLS VA FINED 15000 AND 9308200027 930820 MARKETING BRIEF NOTED AD REVENUE TIMES MIRROR CO'S NEWSPAPER PUBLISHING GROUP HAD A 05 DECLINE IN ADVERTISING REVENUE FOR THE FIVE WEEKS ENDED AUG 1 REVENUE FELL TO 1238 MILLION FROM 1245 MILLION A YEAR EARLIER 9308200026 930809 ABREAST OF THE MARKET ANALYSTS SEE PROFITS POWERING MORE STOCK GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE STOCK MARKET STILL HAS PLENTY OF PROFIT POWER BEHIND IT MONEY MANAGERS AND STRATEGISTS SAY GROWTH IN CORPORATE PROFITS PICKED UP MOMENTUM IN THE SECOND QUARTER PROMPTING ANALYSTS TO REVISE UPWARD THEIR EARNINGS ESTIMATES FOR THE FULL YEAR AND RAISING PROSPECTS OF A CONTINUING CLIMB IN STOCK PRICES ACCORDING TO A SURVEY OF 640 COMPANIES BY ZACKS INVESTMENT RESEARCH CORPORATE EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES OR GAINS CLIMBED 186 IN THE SECOND QUARTER FROM A YEAR EARLIER PROFITS IN THE FIRST QUARTER GREW 176 FROM A YEAR EARLIER WHAT HAS SURPRISED A LOT OF PEOPLE ARE THE BENEFITS FROM RESTRUCTURING AND COSTCUTTING SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS IT TAKES TIME TO BUILD AND IT'S STARTING TO BEAR FRUIT MR ZACKS SAYS PROFITS WERE STRONG ENOUGH TO ENCOURAGE SOME ANALYSTS TO BOOST THEIR FORECASTS FOR EARNINGS GROWTH IN 1993 HEADING INTO THE SECONDQUARTER REPORTING SEASON ANALYSTS HAD BEEN SLASHING THEIR FULLYEAR ESTIMATES JUST 30 OF THEIR REVISIONS BEFORE THE RELEASE OF SECONDQUARTER RESULTS WERE POSITIVE NOW THAT FIGURE HAS CLIMBED TO 40 IN LARGE PART AS A RESULT OF STRONG GAINS AMONG FINANCIAL SERVICES CONCERNS MR ZACKS SAYS THAT GAIN IS A BULLISH SIGNAL CONSIDERING THAT ANALYSTS ARE MUCH MORE PRONE TO CUT ESTIMATES THAN RAISE THEM HE ADDS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAYS HE IS ENCOURAGED BY THE POSITIVE EARNINGS TREND ESPECIALLY AMID THE SLUGGISH ECONOMY HE SAYS THAT EVEN THOUGH GROSS DOMESTIC PRODUCT GREW AN ANEMIC 16 IN THE SECOND QUARTER 67 OF SOME 1600 COMPANIES REPORTING SECONDQUARTER EARNINGS BETWEEN JULY 9 AND JULY 30 ANNOUNCED RESULTS THAT WERE IN LINE WITH OR BETTER THAN ANALYSTS' FORECASTS MR RESNICK SEES THE ECONOMY PERFORMING BETTER IN THE SECOND HALF AND EARNINGS REFLECTING THE IMPROVEMENT I'M NOT TALKING ABOUT A RUNAWAY ECONOMY IN THE SECOND HALF JUST A BETTER ECONOMY HE SAYS BUT COMPANIES HAVE A BETTER OPPORTUNITY NOW TO LEVERAGE MODERATE GAINS IN THE ECONOMY INTO MEANINGFUL GAINS IN EARNINGS AND EARNINGS SURPRISES ALSO ENCOURAGING MR RESNICK SAYS IS THAT A STOCK PRICE STILL JUMPS WHEN A COMPANY REPORTS SURPRISE POSITIVE EARNINGS THAT SUGGESTS STOCKS CONTINUE TO BENEFIT FROM BULL MARKET DRIVE MR RESNICK SAYS WHAT SHOULD WORRY YOU IS IF A POSITIVE EARNINGS SURPRISE DOESN'T BOOST THE STOCK PRICE MR RESNICK PREDICTS THAT THE STOCK MARKET WILL RACK UP FURTHER GAINS IN THE SECOND HALF AS A RESULT OF EARNINGS MOMENTUM BUT HE EXPECTS VOLATILITY TO INCREASE AS ECONOMICALLY SENSITIVE STOCKS THE BIG WINNERS IN THE FIRST HALF RESPOND TO TRENDS IN THE ECONOMY MR RESNICK FORECASTS A TOTAL RETURN OF 8 ON THE S&P 500 FOR THE 12 MONTHS FROM JUNE THE ENGINE DRIVING EARNINGS GROWTH IN THE SECOND HALF WILL BE NOT ONLY THE CONTINUING BENEFITS OF CORPORATE RESTRUCTURING BUT ALSO A PICKUP IN CONSUMER SPENDING SAYS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO MR MCALINDEN SAYS STRONGER SPENDING SPURS HIGHER PRODUCTION AND BETTER PROFITS AND A STRONGER STOCK MARKET TOO I THINK THERE'LL BE MORE NEW HIGHS IN THE DOW INDUSTRIALS MAYBE AS OFTEN AS ONCE OR TWICE A WEEK THROUGH LABOR DAY MR MCALINDEN SAYS HE PREDICTS A SUMMER RALLY THAT WILL TAKE THE DOW INDUSTRIALS UP TO THE 3700 LEVEL THE BIG THREE AUTO MAKERS ARE EXPECTED TO CONTINUE SHOWING GOOD PROFIT GAINS AFTER REPORTING BETTERTHANEXPECTED EARNINGS FOR THE SECOND QUARTER US CAR MAKERS ARE BENEFITING FROM THE STRONG YEN WHICH MAKES JAPANESE CARS MORE EXPENSIVE AND FROM THE ADVANCING AGE OF MANY AUTOS CURRENTLY ON THE ROAD MOST IMPORTANT HOWEVER IS THAT AFTER HAVING THE LIFE SCARED OUT OF THEM IN THE 1980S THE AUTO MAKERS ARE NOW PUTTING OUT VERY GOOD PRODUCTS SAYS RICHARD PUCCI SENIOR VICE PRESIDENT OF I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS ESTIMATES ACCORDING TO I/B/E/S THE AUTO MAKERS' EARNINGS SOARED 118 IN THE SECOND QUARTER FROM A YEAR EARLIER BANKS WHICH REPORTED AMONG THE BEST EARNINGS IN THE SECOND QUARTER ALSO ARE SEEN ADDING TO THEIR GAINS IN THE MONTHS AHEAD ANALYSTS SAY BANKS WILL CONTINUE TO BENEFIT FROM LOW SHORTTERM INTEREST RATES THAT ALLOW HANDSOME SPREADS BETWEEN WHAT THEY PAY TO DEPOSITORS AND WHAT THEY CHARGE FOR LOANS THE LARGE MULTINATIONAL BANKS ALSO ARE EXPECTED TO REAP LARGE PROFITS FROM CURRENCY TRADING ACCORDING TO I/B/E/S BANKS REPORTED EARNINGS GROWTH IN THE SECOND QUARTER OF 353 FROM THE YEAR EARLIER PROFIT GROWTH IN THE FIRST QUARTER WAS 257 THE STOCK MARKET CAN NO LONGER RELY ON FALLING INTEREST RATES TO PUSH PRICES HIGHER SAYS MR PUCCI OF I/B/E/S HE FORESEES A CORRECTION OF 7 TO 10 AFTER THE SUMMER SPARKED BY A SMALL RISE IN RATES BUT AFTER THAT HE SEES STOCK PRICES RESUMING AN UPWARD TREND IT'LL BE MORE OF A STOCK PICKERS' MARKET THOSE THAT COME THROUGH WITH BETTER EARNINGS WILL DO BETTER MR PUCCI SAYS IT'S NOT THE CASE OF THE RISING TIDE THAT LIFTS ALL BOATS AS YOU HAD WHEN RATES WERE FALLING PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAYS EARNINGS WILL CONTINUE TO IMPROVE THE REST OF THIS YEAR PARTLY BECAUSE PROFITS A YEAR EARLIER WERE SO MEAGER GOOD EARNINGS IN THE SECOND HALF ARE A CHIP SHOT BECAUSE YOU'RE COMPARING AGAINST SUCH INCREDIBLY BAD EARNINGS LATE LAST YEAR HE SAYS BUT MR CANELO WARNS THE RATE OF IMPROVEMENT WILL THEN SLACKEN WHICH COULD MEAN TROUBLE FOR THE STOCK MARKET WE COULD SEE THE DOW INDUSTRIALS CLIMB TO THE 3700 LEVEL AS WE HEAD TOWARD THE PEAK IN EARNINGS MOMENTUM MR CANELO SAYS BUT THE STOCK MARKET TENDS TO TOP AROUND THOSE PROFIT PEAKS SHARP GAINS IN EASTMAN KODAK AND SEARS ROEBUCK HELPED LIFT THE DOW JONES INDUSTRIAL AVERAGE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1146 POINTS TO 356043 STANDARD & POOR'S 500STOCK INDEX INCHED UP 055 TO 44868 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 037 TO 24891 VOLUME ON THE BIG BOARD FELL TO 2211 MILLION SHARES FROM 2496 MILLION GAINERS OUTNUMBERED DECLINERS 983 TO 876 FOR THE WEEK THE DOW INDUSTRIALS GAINED 059 S&P 500 ROSE 012 AND THE BIG BOARD COMPOSITE ADDED 017 WORLDWIDE STOCK PRICES INCHED HIGHER FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 002 TO 10956 THE MARKET BARELY REACTED TO THE GOVERNMENT'S JULY EMPLOYMENT REPORT THE LABOR DEPARTMENT SAID NONFARM PAYROLLS ROSE 162000 LAST MONTH A LITTLE LESS THAN ANALYSTS HAD FORECAST BUT THE UNEMPLOYMENT RATE FELL TO 68 FROM 7 ANALYSTS HAD EXPECTED THE RATE TO BE UNCHANGED KODAK AND SEARS ACCOUNTED FOR THE DOW INDUSTRIALS' GAIN KODAK JUMPED 3 1/4 TO A 52WEEK HIGH OF 58 5/8 ON NEWS THAT ITS CHAIRMAN KAY R WHITEMORE WILL RESIGN AFTER THE ANNOUNCEMENT PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD SEARS ROSE 1 7/8 TO 55 CONTINUING A CLIMB THAT BEGAN WEDNESDAY IN ANTICIPATION OF A STRONG JULY RETAIL SALE REPORT THAT WAS RELEASED THURSDAY SEARS WAS UP 4 3/4 FOR THE WEEK AUTO MAKERS SLUMPED AFTER SALOMON BROTHERS ISSUED A DOWNBEAT REPORT ON FORD SALOMON ANALYST JACK KIRNAN WARNED THAT AUTO MAKERS' INCREASING RELIANCE ON SHORTTERM LEASING AS AN INCENTIVE TO REPLACE REBATES IS RISKY AND CARRIES INCREASED NEARTERM COSTS FORD SLIPPED 1 TO 51 5/8 CHRYSLER FELL 1 TO 41 7/8 AND GENERAL MOTORS DECLINED 7/8 TO 47 3/4 MYLAN LABORATORIES JUMPED 2 1/2 TO 23 1/8 AFTER THE DRUG MAKER ISSUED A STATEMENT REASSURING INVESTORS THAT IT IS IN THE STRONGEST FINANCIAL POSITION EVER AND THAT THERE ARE ABSOLUTELY NO PROBLEMS AT THE COMPANY MYLAN SAID THE STATEMENT WAS PROMPTED BY ITS RECENT POOR STOCK PERFORMANCE THE SHARES HIT A 52WEEK LOW OF 19 5/8 FRIDAY BEFORE THE STATEMENT SPARKED BUYING MOBIL GAINED 1 1/2 TO 72 5/8 MORGAN STANLEY UPGRADED ITS RATING OF THE STOCK TO BUY FROM HOLD TRADING IN PRECIOUS METALS STOCKS REMAINED BRISK FOLLOWING THURSDAY'S STEEP DECLINE IN GOLD PRICES SEVERAL GOLD STOCKS RECOUPED SOME OF THEIR LOSSES HOMESTAKE MINING CLIMBED 1/4 TO 19 1/8 AND AMERICAN BARRICK RESOURCES EDGED UP 1/4 TO 24 1/2 EACH ON MORE THAN 2 MILLION SHARES TRADED GEICO JUMPED 2 5/8 TO 52 5/8 ON BETTERTHANEXPECTED EARNINGS THE PROPERTY AND CASUALTY INSURANCE UNDERWRITER POSTED SECONDQUARTER EARNINGS OF 118 A SHARE UP FROM 92 CENTS A YEAR AGO THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 081 OR 019 TO 43634 THERE WERE 247 DECLINERS AND 289 GAINERS PERCENTAGE DIFFERENCE BETWEEN ACTUAL EARNINGS FROM CONTINUING OPERATIONS WHERE APPLICABLE AND ANALYSTS' AVERAGE ESTIMATED EARNINGS AMONG THE DOW JONES INDUSTRY GROUPS FOR THE SECOND QUARTER OF 1993 A CHART ACCOMPANYING THE ABREAST OF THE MARKET COLUMN AUG 9 CONTAINED INACCURATE DATA THE CHART ILLUSTRATING THE PERCENTAGE OF INDUSTRY GROUPS FALLING ABOVE BELOW OR MATCHING ANALYSTS' EARNINGS EXPECTATIONS SHOULD HAVE SHOWN THAT 49 OF GROUPS CAME IN ABOVE EXPECTATIONS 38 WERE BELOW AND 13 AS EXPECTED THE INCORRECT CHART SHOWED 42 OF GROUPS ABOVE EXPECTATIONS 33 BELOW AND 11 AS EXPECTED 9308200024 930820 CLAYTON HOMES SAYS RETAILUNIT OFFICIAL EMBEZZLED SIZABLE SUM FROM CHAIRMAN BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL CLAYTON HOMES INC ALLEGED THAT THE FORMER CONTROLLER FOR ITS RETAIL GROUP EMBEZZLED A SIZABLE AMOUNT OF MONEY FROM JAMES L CLAYTON THE COMPANY'S FOUNDER AND CHAIRMAN WIDENING THE CLOUD OVER THE COMPANY MEANWHILE AN OFFICIAL WITH THE TENNESSEE REVENUE DEPARTMENT SAID THAT ITS PREVIOUSLY DISCLOSED INVESTIGATION INTO THE KNOXVILLE TENN HOMEBUILDER'S FAILURE TO MAKE CERTAIN TAX PAYMENTS IS A CRIMINAL MATTER AND A SECURITIES AND EXCHANGE COMMISSION FILING BY TWO OUTSIDE DIRECTORS WHO RECENTLY RESIGNED QUESTIONED THE ADEQUACY OF THE COMPANY'S INTERNAL AUDIT OF ITS SALES TAX AND OTHER RECORDS CLAYTON HOME'S STOCK TUMBLED 94 YESTERDAY ON THE NEWS AND IN THE WAKE OF THE DISCLOSURE TUESDAY THAT THE OUTSIDE DIRECTORS HAD RESIGNED AFTER A DISPUTE OVER HOW THE BOARD SHOULD HANDLE THE TENNESSEE STATE INVESTIGATION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CLAYTON HOMES STOCK FELL 2625 TO 2525 IN HEAVY TRADING SINCE MONDAY THE STOCK HAS LOST 165 OF ITS VALUE CLAYTON HOMES SAID THE CONTROLLER FOR THE RETAIL GROUP RESIGNED IN EARLY JUNE AFTER THE STATE TAX INVESTIGATION BEGAN THE COMPANY SAID THE CONTROLLER HAD BEEN RESPONSIBLE FOR FILING TAX RETURNS FOR 33 MOBILEHOME PARKS OWNED BY CLAYTON HOMES AS WELL AS FIVE PARKS MR CLAYTON HIMSELF OWNS AS A PERSONAL INVESTMENT DURING AN HOURLONG CONFERENCE CALL WITH ANALYSTS AND INVESTORS MR CLAYTON CLAIMED THAT THE RETAIL DIVISION CONTROLLER WHOM HE DIDN'T IDENTIFY BY NAME PILFERED FROM HIS PERSONAL HOLDINGS BUT ASSERTED THAT NOT ONE PENNY IS MISSING FROM THE COMPANY MR CLAYTON WOULDN'T SPECIFY HOW MUCH MONEY WAS TAKEN HE SAID THE TENNESSEE REVENUE DEPARTMENT ALSO WAS INVESTIGATING THE CONTROLLER AS WAS THE STATE ATTORNEY GENERAL'S OFFICE A COMPANY OFFICIAL LATER SAID MR CLAYTON WAS REFERRING TO WARREN SCHEDE THE OFFICIAL ALSO CONFIRMED MR SCHEDE WAS THE CONTROLLER WHO RESIGNED IN EARLY JUNE MR SCHEDE REACHED AT HIS HOME LAST NIGHT SAID HE HAD NO COMMENT ON THE ADVICE OF HIS LAWYER THE ATTORNEY GENERAL'S OFFICE SAID IT COULDN'T CONFIRM OR DENY AN INVESTIGATION AN OFFICIAL AT THE TENNESSEE DEPARTMENT OF REVENUE SAID HE WASN'T AWARE OF AN INVESTIGATION OF THE CONTROLLER DURING THE CONFERENCE CALL MR CLAYTON ALSO SAID THE CONTROLLER HADN'T HAD CLAYTON HOMES PAY REQUIRED SALES TAX ON FIVE COMPANYOWNED MOBILE HOME PARKS IN TENNESSEE AND HADN'T HAD MR CLAYTON PAY REQUIRED TAXES ON HIS FIVE PARKS BETWEEN 1988 AND 1991 AS A RESULT CLAYTON HOMES SAID TUESDAY THAT IT RECENTLY PAID THE STATE 163000 IN SALES TAXES FOR THE YEARS INVOLVED WHICH WERE ANALYZED IN A RECENT AUDIT BY ARTHUR ANDERSEN & CO MR CLAYTON PERSONALLY PAID 175000 IN BACK TAXES FOR THAT PERIOD THE COMPANY SAID THIS IS EMBARRASSING MR CLAYTON SAID DURING THE CONFERENCE CALL I SHOULD HAVE PAID MORE ATTENTION TO MY AFFAIRS MR CLAYTON SAID HE HAS SINCE HIRED A FULLTIME BOOKKEEPER TO HANDLE HIS PERSONAL INVESTMENTS MR CLAYTON REITERATED THAT THE TAX INVESTIGATION WOULDN'T AFFECT EARNINGS HOWEVER THE TWO OUTSIDE DIRECTORS SAID IN THEIR RESIGNATION LETTERS THAT THE COMPANY'S INTERNAL AUDIT OF ITS SALES TAX AND OTHER RECORDS IS UNLIKELY TO PROVE ADEQUATE ACCORDING TO A RECENT SEC FILING THE DIRECTORS WALLACE RASMUSSEN RETIRED CHIEF EXECUTIVE OFFICER OF BEATRICE FOODS COS AND WILLIAM LOMICKA PRESIDENT OF MAYFAIR CAPITAL COULDN'T BE REACHED FOR COMMENT THE COMPANY SAID IT KNOWS OF NO FURTHER IMPROPRIETIES MR RASMUSSEN AND MR LOMICKA WALKED OUT OF THE ROOM MAD AND THREW A HAND GRENADE INTO THE ROOM AS THEY WALKED OUT SAID MR CLAYTON THEY HAVEN'T GIVEN INFORMATION ABOUT ANYTHING THAT COULD BE OF MATERIAL INTEREST TO THE COMPANY AT ALL RICHARD RAY EXECUTIVE VICE PRESIDENT OF FINANCE SAID THE COMPANY WASN'T AWARE OF THE CRIMINAL NATURE OF THE STATE'S INVESTIGATION MR RAY SAID THE COMPANY STRONGLY BELIEVES IT HASN'T VIOLATED ANY CRIMINAL STATUTES FOLLOWING THE CONFERENCE CALL CLAYTON'S STOCK REBOUNDED SOME AS INVESTORS AND SOME ANALYSTS SEEMED REASSURED BY THE COMPANY'S STATEMENTS THE COMPANY DID EVERYTHING THEY COULD HAVE AS FAR AS DAMAGE CONTROL GOES SAID MARKS HINTON AN ANALYST WITH EQUITABLE SECURITIES IN NASHVILLE TENN THERE'S STILL SOME CONCERN UNTIL THE PEOPLE MAKING THESE CHARGES COME FORTH AND SPECIFY WHAT THE CHARGES ARE HE SAID HERE ARE THE DIRECTORS OF CLAYTON HOMES INC JAMES L CLAYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER B JOE CLAYTON JAMES CLAYTON'S BROTHER CHIEF EXECUTIVE OF CLOSELY HELD CLAYTON MOTORS INC A KNOXVILLE TENN HOLDING COMPANY FOR AUTO DEALERSHIPS AND REAL ESTATE E TYLER KELLY EXECUTIVE VICE PRESIDENT MANUFACTURING DIVISION CLAYTON HOMES RICHARD B RAY EXECUTIVE VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER CLAYTON HOMES JOSEPH H STEGMAYER PRESIDENT AND CHIEF OPERATING OFFICER CLAYTON HOMES DAN W EVINS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF CRACKER BARREL OLD COUNTRY STORE INC A RESTAURANT CHAIN BASED IN LEBANON TENN JAMES D COCKMAN CHAIRMAN OF OCEAN FRESH FOODS INTERNATIONAL INC A CLOSELY HELD SEAFOOD DISTRIBUTOR IN GREENVILLE SC C WARREN NEEL DEAN OF THE UNIVERSITY OF TENNESSEE COLLEGE OF BUSINESS ADMINISTRATION MESSRS COCKMAN AND NEEL WERE APPOINTED THIS WEEK TO SUCCEED TWO DIRECTORS WHO TURNED IN THEIR LETTERS OF RESIGNATION LAST FRIDAY WALLACE N RASMUSSEN RETIRED CHIEF EXECUTIVE OF BEATRICE FOODS COS AND WILLIAM H LOMICKA PRESIDENT OF MAYFAIR CAPITAL A LOUISVILLE KY INVESTMENT COMPANY 9308200023 930820 ENTERPRISE HOSPITAL NETWORKS ARE TURNING TO SMALL SUPPLIERS MANY OPPORTUNITIES DEVELOP AS COSTCUTTING EFFORTS INTENSIFY BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL NETWORKS OF INDEPENDENT HOSPITALS ARE INCREASINGLY TURNING TO SMALL SUPPLIERS TO HELP THEM CUT COSTS RESULT UNPRECEDENTED OPPORTUNITIES FOR SMALL COMPANIES TO SELL TO WHOLE GROUPS OF HOSPITALS AS SINGLE CUSTOMERS ABOUT A DOZEN MAJOR US HOSPITAL ALLIANCES WHICH REPRESENT NEARLY ONE MILLION HOSPITAL BEDS FOR YEARS HAVE POOLED THEIR PURCHASING POWER TO GET VOLUME DISCOUNTS FROM BIG NATIONAL SUPPLIERS NOW AS PRESSURE TO CUT COSTS ESCALATES SOME ARE FOCUSING SUCH BUYING ACTIVITY ON SMALL COMPANIES LAST YEAR FOR INSTANCE SUNHEALTH ALLIANCE IN CHARLOTTE NC A UNIT OF SUNHEALTH CORP DIVIDED ITS 275 HOSPITALS IN 15 STATES INTO 17 REGIONAL NETWORKS TO APPLY THE ECONOMIES OF GROUP PURCHASING LOCALLY SAYS PAT POSTON A SUNHEALTH SENIOR VICE PRESIDENT AS A RESULT WE'RE IN THE PROCESS OF ORGANIZING MARKETS FOR COMPANIES THAT DIDN'T HAVE ACCESS TO THEM BEFORE THE OFFICIAL ADDS MANY SMALL COMPANIES SUCH AS ADVANCED ORTHOPEDIC TECHNOLOGIES INC ARE GAINING BIG CONTRACTS THE WEST HEMPSTEAD NY MAKER OF ARTIFICIAL LIMBS AND BRACES WHICH HAS 10 MILLION IN ANNUAL REVENUE SIGNED A CONTRACT EARLIER THIS YEAR WITH PREMIER HOSPITALS ALLIANCE OF NEW YORK INC A FIVEYEAROLD REGIONAL NETWORK THAT BELONGS TO THE 51MEMBER PREMIER HOSPITALS ALLIANCE INC IN WESTCHESTER ILL ADVANCED ORTHOPEDIC ALREADY WAS PROVIDING PATIENTCARE SERVICES TO SOME OF THE REGIONAL COOPERATIVE'S SEVEN MEMBERS SUCH AS MOUNT SINAI MEDICAL CENTER SAYS ANDREW MEYERS ADVANCED ORTHOPEDIC'S PRESIDENT BUT NOW THE COMPANY HAS A SHOT AT ADDING AN ESTIMATED 7 MILLION IN ANNUAL REVENUE PREMIER SAYS THIS INCLUDES BOTH THE MONEY THE COOPERATIVE SPENDS ON SUCH DEVICES AND THE MONEY ITS PATIENTS SPEND ON OUTPATIENT CARE WHILE PREMIER MEMBERS AREN'T OBLIGATED TO PURCHASE ADVANCED ORTHOPEDIC'S DEVICES THOSE THAT DO GET THEM AT A DISCOUNT HOSPITAL ADMINISTRATORS ALSO HOPE THAT CONSOLIDATING THEIR PURCHASES OF A GIVEN PRODUCT WITH ONE SUPPLIER WILL IMPROVE EFFICIENCY BECAUSE THE HOSPITALS AREN'T REQUIRED TO BUY HIS PRODUCTS MR MEYERS ADDS PREMIER HASN'T GIVEN US ANYTHING ON A SILVER PLATTER BUT HE ADDS THEY'VE GIVEN US AN OPPORTUNITY IF WE'RE SUCCESSFUL IN NEW YORK WE'VE GOT THE POTENTIAL OF DOING THIS WITH OTHER HOSPITAL GROUPS THROUGHOUT THE COUNTRY HOSPITALS ALSO CAN GAIN FROM DEALING COLLECTIVELY WITH SMALL COMPANIES ADMINISTRATORS SAY DOING SO LOWERS THE PRICES THEY PAY FOR SUPPLIES NOT COVERED BY THEIR ALLIANCE'S NATIONAL PURCHASING PROGRAMS THESE PROGRAMS TEND TO CONCENTRATE ON PRODUCTS BOUGHT IN VERY HIGH VOLUME OFTEN FROM BIG COMPANIES HOSPITAL ADMINISTRATORS SAY SMALL SUPPLIERS ALSO TEND TO BE MORE FLEXIBLE AND RESPONSIVE THAN LARGER CONCERNS THUS ENABLING REGIONAL HOSPITAL ALLIANCES TO TAILOR GOODS AND SERVICES TO THEIR SPECIAL NEEDS GROUPPURCHASING ORGANIZATIONS ARE GOING BACK TO THEIR GEOGRAPHICAL ROOTS SAYS LEE PERLMAN AN EXECUTIVE VICE PRESIDENT OF GREATER NEW YORK HOSPITAL ASSOCIATION VENTURES INC A UNIT OF A 155MEMBER HOSPITAL TRADE GROUP THE UNIT'S JOINT BUYING HAS GROWN 20 TO 30 ANNUALLY FOR THE PAST FIVE YEARS TO MORE THAN 500 MILLION THEY'RE REALIZING THEIR STRENGTH LIES IN LOCAL MARKETS BOB CONATY AN EXECUTIVE VICE PRESIDENT AT MONTEFIORE MEDICAL CENTER NEW YORK SAYS THE NETWORK IS ONE OF THE PIECES OF THE PUZZLE FOR CONTROLLING RISING EXPENSES SUPPLIER COSTS IS ONE OF THE AREAS WE ARE FOCUSING ON MORE AND MORE ADDS THE OFFICIAL WHOSE 1250BED CENTER BELONGS TO PREMIER'S REGIONAL ALLIANCE PREMIER'S NEW YORK MEMBERS EXPECT THIS YEAR TO SAVE 26 MILLION ON 156 MILLION OF GROUPBUYING ACTIVITY SAYS EVAN POLANSKY THE REGIONAL COOPERATIVE'S PRESIDENT IN 1992 MEMBERS SAVED 16 MILLION ON PURCHASES OF 137 MILLION HE ADDS MR POLANSKY SAYS PREMIER'S NEW YORK NETWORK IS EXPECTED THIS YEAR TO RETURN 640 IN SAVINGS FOR EVERY 1 OF MEMBER FEES UP FROM 420 IN SAVINGS PER FEEDOLLAR IN 1992 MOREOVER MR POLANSKY SAYS SMALL SUPPLIERS ARE BETTER EQUIPPED THAN BIG ONES TO MEET HOSPITALS' INDIVIDUAL NEEDS WHILE LARGE SUPPLIERS DON'T NEED TO BE FLEXIBLE BECAUSE THEY'RE ALREADY ENTRENCHED SMALL SUPPLIERS ARE WILLING TO DEDICATE A SIZABLE AMOUNT OF THEIR MARKETING AND MANAGEMENT RESOURCES TO ACCOMMODATING THE ALLIANCE AS A CUSTOMER FOR INSTANCE IN ORDER TO GET PREMIER'S BUSINESS TWO YEARS AGO SAFESITE RECORDS MANAGEMENT CORP BILLERICA MASS TRIPLED TO 45000 SQUARE FEET THE RECORDSSTORAGE SPACE IT LEASES IN THE NEW YORK METROPOLITAN AREA SAYS JAMES WAYMAN PRESIDENT IT ALSO ACCOMMODATED THE ALLIANCE IN SMALLER WAYS BESIDES KEEPING PREMIER'S RECORDS THE COMPANY ALSO STORES SOME OF THE GROUP'S ARTIFICIAL CHRISTMAS TREES MR WAYMAN HAS GOOD REASON TO ACCOMMODATE THOSE TREES THE PREMIER CONTRACT ONE OF SAFESITE'S LARGEST BRINGS IN 600000 A YEAR MORE THAN 5 OF THE COMPANY'S 10 MILLION ANNUAL REVENUE AND WITH 10 RECORDSSTORAGE CENTERS NATIONWIDE MR WAYMAN SAYS HE HOPES EVENTUALLY TO DO BUSINESS WITH PREMIER HOSPITALS OUTSIDE THE NEW YORK AREA LIKE ITS CONTRACT WITH PREMIER'S REGIONAL NETWORK A CONTRACT WITH THE NATIONAL ALLIANCE WOULDN'T OBLIGATE MEMBER HOSPITALS TO USE SAFESITE'S RECORDSSTORAGE SERVICE WE'RE STILL GOING TO HAVE TO SELL THE SERVICE TO INDIVIDUAL MEMBERS MR WAYMAN SAYS BUT WITHOUT THE ACCESS THAT PREMIER'S NEW YORK NETWORK PROVIDED GETTING EVEN A CHANCE TO SELL THE SERVICE TO A NATIONAL ALLIANCE OF HOSPITALS WOULD HAVE TAKEN A WHOLE LOT LONGER HE ADDS 9308200022 930820 AUTOS GOODBYE TO HAGGLING SAVVY CONSUMERS ARE BUYING THEIR CARS LIKE REFRIGERATORS BY DOUGLAS LAVIN AND KRYSTAL MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT AMERICA'S CARBUYING RITUAL IN WHICH HORSETRADING DEALERS BATTLE IMPULSEDRIVEN CUSTOMERS IS CRUMBLING AS MILLIONS OF CONSUMERS TROOP TO SHOWROOMS TO REPLACE AGING CLUNKERS NURSED THROUGH THE LAST RECESSION DEALERS AND MANUFACTURERS ARE ENCOUNTERING A BIG SHIFT IN ATTITUDES NO LONGER DO MANY CONSUMERS VIEW PURCHASING A CAR AS SOMETHING SPECIAL MORE AND MORE IT'S LIKE BUYING AN APPLIANCE SAYS THOMAS G ELLIOTT EXECUTIVE VICE PRESIDENT OF HONDA MOTOR CO'S US MARKETING ARM IT'S A RATHER HEARTLESS SHOPPER WHO'S OUT LOOKING FOR THE BEST DEAL AND FOR 100 WILL SWITCH DEALERS AS THE QUALITY GAP BETWEEN BIG THREE MODELS AND THEIR JAPANESE COMPETITORS NARROWS MORE CONSUMERS ARE FOCUSING ON HOW TO MAKE BUYING A CAR SIMPLER AND LESS FINANCIALLY RISKY MANUFACTURERS ARE SCRAMBLING TO STAY AHEAD AND MAKE A PROFIT IN THE PROCESS AND THAT MEANS BIG CHANGES FOR CONSUMERS CAR MAKERS AND DEALERS RAISED IN THE DAYS WHEN MANY PEOPLE CUSTOMORDERED CARS AND ALMOST EVERYONE EXPECTED TO HAGGLE BEFORE DRIVING OFF WITH THE NEW DREAM MACHINE AND A FRESH PAYMENT BOOK CONSIDER HOW SARAH RAYMOND AND HER HUSBAND STEPHEN MARSHALL AVOIDED THAT TRADITIONAL SELLING PROCESS THIS SUMMER WHEN THEY DECIDED THE IMPENDING ARRIVAL OF TWINS MEANT THEY NEEDED A NEW CAR MS RAYMOND A 41YEAROLD PROFESSOR OF PHOTOGRAPHY AT NORTHERN VIRGINIA COMMUNITY COLLEGE RECALLED HER LAST CAR SHOPPING EXPERIENCE AS VERY PAINFUL MS RAYMOND HAD TRAMPED FROM DEALERSHIP TO DEALERSHIP WITH A MALE FRIEND IN TOW WHO LIKED TO HAGGLE BUT STILL SHE SAYS I NEVER WAS SURE THAT I GOT THE BEST PRICE THIS TIME MS RAYMOND AND MR MARSHALL A 39YEAROLD GEOLOGIST WITH THE US FOREST SERVICE TOOK A DIFFERENT APPROACH THE WASHINGTON COUPLE SHOPPED AROUND BUT ONLY TO SETTLE ON THE KIND OF CAR THEY WANTED THEN THEY PAID 120 TO A SERVICE CALLED CAR BARGAINS THAT COLLECTED FIVE BIDS FROM FORD DEALERS WILLING TO SELL A TAURUS GL AT A MARGINAL AMOUNT ABOVE THE FACTORY INVOICE PRICE MS RAYMOND FOLLOWED UP WITH EACH DEALER BY PHONE WITHIN A DAY AND WITHOUT TEDIOUS NEGOTIATIONS THE COUPLE HAD THE CAR THEY WANTED A TAURUS SEDAN WITH ANTILOCK BRAKES AIRBAG AND AIR CONDITIONING FOR 14500 ABOUT 3000 BELOW THE WINDOW STICKER PRICE IT WAS VERY VERY SMOOTH SAYS MR MARSHALL THE NONONSENSE ATTITUDE AMONG CONSUMERS IS DRIVING A BROAD SURGE OF NEW APPROACHES TO CAR PRICING AND SELLING GENERAL MOTORS CORP HAS MADE A BIG SPLASH WITH ITS MOVE TO NARROW CHOICES IN ITS MANY MODEL LINES AND SLAP VALUE PRICES ON CERTAIN WELLEQUIPPED MODELS TO CONVINCE CONSUMERS THAT THEY'RE GETTING A BARGAIN FORD MOTOR CO IS PUSHING CUTRATE SHORTTERM LEASES TO EASE CONSUMER FEARS ABOUT RISING STICKER PRICES AND COMPLEX SHOWROOM NEGOTIATING CONSUMERS MEANWHILE ARE INCREASINGLY DOING WHAT MS RAYMOND AND MR MARSHALL DID PATRONIZING DIALADEAL SHOPPING SERVICES LIKE CAR BARGAINS OR SERVICES PROVIDED BY CREDIT UNIONS AND RETAILERS LIKE WALMART THAT SET CUSTOMERS UP WITH NEW CARS AT DISCOUNT PRICES PRENEGOTIATED WITH DEALERS ALL TOGETHER SOME 40 OF NEW CARS ARE NOW PURCHASED SOME WAY OTHER THAN THE TRADITIONAL SHOPHAGGLEANDBUYONCREDIT APPROACH SAYS DORIS EHLERS AN ANALYST WITH JD POWER ASSOCIATES AN AGOURA HILLS CALIF MARKET RESEARCH FIRM MS EHLERS SAYS CONSUMERS WHO USE BROKERS AND PRICE CLUBS BELIEVE THEY SAVE AS MUCH AS 1800 OVER TRADITIONAL BUYING METHODS JUST LIKE YOU CAN BUY A COMPUTER A LOT OF DIFFERENT WAYS PEOPLE WANT TO BUY A CAR A LOT OF DIFFERENT WAYS MS EHLERS SAYS ECONOMIST DAVID LITTMANN OF COMERICA BANK IN DETROIT SAYS CONSUMERS ARE WARIER THAN EVER ABOUT OVERSPENDING FOR A NEW CAR BECAUSE VEHICLE PRICES ARE RISING FASTER THAN PERSONAL INCOMES THIS REFLECTS A NEW BUYING SENTIMENT IN THE PUBLIC AIMED AT A NEW PURCHASINGPOWER REALITY HE SAYS AND THAT LEAVES AUTO MAKERS WITH A TRICKY CHALLENGE AS THEY TRY TO INCREASE PROFITS WHILE APPEARING TO OFFER CONSUMERS A BETTER DEAL JAPANESE CAR MAKERS HAVE LITTLE ROOM TO MANEUVER WITH THE YEN RECENTLY AT RECORD HIGH LEVELS AGAINST THE DOLLAR THEY'RE RAISING PRICES 2000 OR MORE ABOVE RIVAL DOMESTIC MODELS ANALYSTS SAY MOST JAPANESE AUTO MAKERS HAVEN'T ANNOUNCED 1994 PRICES BUT TOYOTA MOTOR CORP HAS SAID IT WILL INCREASE PRICES FAIRLY SUBSTANTIALLY NISSAN MOTOR CORP HAS SAID ITS SENTRA COMPACT SEDAN WILL CARRY A BASE STICKER PRICE OF 9780 UP 122 FROM THE 1993 PRICE DETROIT IS RAISING PRICES TOO BY REDUCING CASH REBATES RAISING STICKER PRICES ON NEW MODELS AND CUTTING DEALER MARGINS BUT THE BIG THREE ARE TRYING TO REASSURE CONSUMERS THAT THEY CAN STILL GET A GOOD DEAL GM'S OLDSMOBILE DIVISION WILL MAKE MORE THAN HALF THE CARS IT SELLS IN THE 1994 MODEL YEAR VALUE PACKAGE MODELS INCLUDING A 1994 CUTLASS SUPREME THAT WILL LIST FOR 16995 AND HAVE AIRBAGS AND ANTILOCK BRAKES STANDARD HOW WILL OLDSMOBILE BOOST PROFITS BY ELIMINATING LOWPRICED STRIPPED VERSIONS OF THE CAR REDUCING COMPLEXITY IN THE ASSEMBLY PLANT AND CUTTING DEALER PROFIT MARGINS FORD MEANWHILE IS COUNTERING WITH SHORTTERM LEASE DEALS SUCH AS ONE THAT OFFERS TWOYEAR USE OF A 19825 TAURUS FOR JUST 279 A MONTH THAT'S LESS THAN THE 378 MONTHLY PAYMENT IT WOULD TAKE TO BUY THE CAR OVER FOUR YEARS THE CATCH LEASE CUSTOMERS HAVE TO TAKE THE CAR EQUIPPED THE WAY FORD WANTS IT AND THEY MUST COME BACK FOR A NEW VEHICLE IN JUST TWO YEARS SOME INDUSTRY OFFICIALS AND DEALERS REMAIN SKEPTICAL OF THE NEW FASHIONS IN PRICING AND SALES CHRYSLER CORP HAS LARGELY AVOIDED VALUE PRICING PROMOTIONS PARTLY BECAUSE ITS EXECUTIVES BELIEVE THE COMPANY'S HOT NEW MODELS CAN SELL WITHOUT SUCH STRATEGIES BUT CHRYSLER IS ABOUT TO START A MAJOR PUSH TO MARKET DISCOUNT LEASES IN ORDER TO CASH IN ON THAT GROWING MARKET GM'S CHEVROLET DIVISION IS OFFERING RELATIVELY FEW VALUE PRICING DEALS IN PART BECAUSE MANY CHEVY DEALERS DON'T LIKE THE IDEA OF GIVING AWAY SOME OF THEIR PROFIT MARGINS I DON'T THINK ONEPRICE IS NEARLY AS IMPORTANT AS REDUCING THE CONFRONTATION ON EITHER SIDE SAYS JC JIM PERKINS THE GM VICE PRESIDENT WHO RUNS THE BIG CHEVROLET DIVISION BUT OTHERS LIKE NAPLES FLA DEALER EARL HILGER SAY THE DEMISE OF THE OLD WAYS IS INEVITABLE MR HILGER SAYS 47 OF THE OLDSMOBILES HE MOVED OUT IN JULY WERE LEASED ON SHORTTERM CONTRACTS COMPARED WITH 12 THE YEAR BEFORE THE CAR BUSINESS IS CHANGING MR HILGER SAYS AND SOME DEALERS DON'T KNOW IT JACQUELINE MITCHELL CONTRIBUTED TO THIS ARTICLE 9308200021 930820 LETTERS TO THE EDITOR THE GREAT PAPER THEFT IN READING YOUR JULY 26 EDITORIAL PENN THE REPORT AND ACCOMPANYING EXCERPT OF THE UNIVERSITY INVESTIGATIVE REPORT REGARDING THE GREAT PAPER THEFT DOUBLETHINK AT UNIVERSITY OF PENNSYLVANIA ONE CAN'T HELP BUT WONDER WHAT THE REACTION WOULD HAVE BEEN HAD A CONSERVATIVE GROUP ENGAGED IN SIMILAR CENSORSHIP ATTEMPTS IF CONSERVATIVES HAD STOLEN THE ENTIRE PRESS RUN OF A GAY/LESBIAN PUBLICATION THE CRIES OF HOMOPHOBIA WOULD BE DEAFENING HAD A LEFTIST PAPER BEEN STOLEN THE THIEVES WOULD HAVE BEEN BRANDED FASCIST NEONAZI THUGS AND IT WOULD BE THE THIEVES IN THOSE CIRCUMSTANCES RATHER THAN THOSE WHO TRIED TO STOP THE THEFTS WHO WOULD BE SUBJECT TO THOUGHTCONTROL SENSITIVITY CLASSES AS FOR THE BLACKS WHO STOLE THE DAILY PENNSYLVANIAN ENGAGED IN PHYSICAL VIOLENCE AGAINST THOSE WHO TRIED TO STOP THEM AND CURSED ANYONE WHO CRITICIZED THEM THEIR SENSITIVITY IS OBVIOUS FOR ALL TO SEE AS HAS BECOME PAINFULLY OBVIOUS IT IS THE LIBERALS WHO STIFLE DISSENT WHILE HYPOCRITICALLY PAYING LIP SERVICE TO FREEDOM OF EXPRESSION AND DIVERSITY CONSERVATIVES TEND TO BE MORE OPEN TO DIVERSITY OF OPINION AND LESS GIVEN TO RAMPANT LAWLESSNESS AND CENSORSHIP PENN'S HANDLING OF THE DAILY PENNSYLVANIAN THEFT MAKES ME WONDER HOW FAR REMOVED IT IS FROM THE REAL WORLD PUNISHING THE SECURITY OFFICERS FOR DOING THEIR JOBS IF DONALD FITZGERALD HAD FOUND STOLEN ARTWORK IN THE ACTIVIST'S BAGS INSTEAD OF THE OFFENDING NEWSPAPERS HE WOULD BE LAUDED AS A HERO NOT REPRIMANDED FOR OVERSTEPPING HIS JOB FUNCTIONS BUT CAN WE TRULY FEEL SORRY FOR MR FITZGERALD ANY RIGHTTHINKING SECURITY OFFICER WOULD HAVE CONSULTED A SENSITIVITY MANUAL AND ALERTED OPEN EXPRESSION MONITORS BEFORE TRYING TO STOP CRIMINAL ACTIVITY DOUBTLESS THE MISGUIDED VANGUARD OF POLITICAL CORRECTITUDE WILL HOLD THAT PROTESTERS IN THESE SITUATIONS SHOULD NOT BE PUNISHED FOR THEFT THIS IS TRUE THEY SHOULD BE PUNISHED FOR DENYING ANOTHER GROUP'S FREE SPEECH WHAT ON EARTH IS GOING ON HERE WHERE ARE THE OPEN EXPRESSION MONITORS WHEN THE DAILY PENNSYLVANIAN STAFF IS DENIED THE RIGHT TO FREE SPEECH AND WHAT ABOUT THE RIGHTS OF THOSE WHO WANTED TO READ IT IT SOUNDS TO ME LIKE THE ACTIVISTS SHOULD BE TAKING COURSES IN DIVERSITY AND CIVILITY ONCE AGAIN YOUR EDITORIAL PAGE HAS MISLED YOUR READERS ABOUT THE UNIVERSITY OF PENNSYLVANIA THIS TIME REGARDING ITS HANDLING OF ISSUES RAISED AFTER A GROUP OF STUDENTS SEIZED COPIES OF THE STUDENT NEWSPAPER APRIL 15 YOUR READERS DESERVE TO KNOW THE FACTS THE SPECIAL INQUIRY BOARD DID NOT ABSOLVE THE STUDENTS OF ANY WRONGDOING AS YOU INCORRECTLY STATED THE STUDENTS INVOLVED IN SEIZING THE PAPERS WILL FACE DISCIPLINARY PROCEDURES IN THE FALL AS UNIVERSITY LEADERS HAVE CONSISTENTLY SAID CONTRARY TO YOUR EDITORIAL'S IMPLICATION THE BOARD'S PURPOSE WAS TO DETERMINE WHETHER POLICE AND SECURITY EMPLOYEES VIOLATED THEIR OWN PROCEDURES WHEN THEY APPREHENDED THE STUDENTS 9308200020 930820 GOODYEAR REDEEMS DEBENTURES AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT REDEEMED 150 MILLION IN EURO CONVERTIBLE DEBENTURES WITH AN INTEREST RATE OF 6 7/8 THE TIRE MAKER SAID THE REDEMPTION WILL SAVE MORE THAN 9 MILLION A YEAR IN INTEREST COSTS 9308200019 930820 WHAT'S NEWS BUSINESS AND FINANCE THE DOLLAR SOARED 42 AGAINST THE YEN AFTER THE US ABRUPTLY REVERSED ITS STANCE TOWARD THE CURRENCIES THE NEW YORK FED REPEATEDLY SOLD YEN AND BOUGHT DOLLARS CATCHING CURRENCY TRADERS OFF GUARD US OFFICIALS SAID THE MOVE WAS PARTLY IN REACTION TO SIGNS THAT JAPAN IS MOVING TO STIMULATE ITS ECONOMY BY CUTTING INTEREST RATES THEY SAID THEY DON'T INTEND TO PLACE A CEILING ON THE YEN MATTEL AGREED TO ACQUIRE FISHERPRICE IN A 11 BILLION STOCK SWAP THE PLAN WOULD CREATE A BRANDNAME TOY POWERHOUSE THAT WILL RIVAL HASBRO AS THE TOY INDUSTRY'S BIGGEST PLAYER US EXPORTS FELL 33 IN JUNE HELPING TO WIDEN THE TRADE DEFICIT TO ITS BIGGEST LEVEL IN MORE THAN FIVE YEARS IMPORTS CLIMBED 51 TO A RECORD LONGTERM BOND PRICES RALLIED SENDING INTEREST RATES PLUNGING IN RESPONSE TO THE TRADEDEFICIT REPORT CLINTON HELPED NEGOTIATE A 6 BILLION ORDER FOR USBUILT COMMERCIAL JETS FROM SAUDI ARABIA'S STATERUN AIRLINE A WASHINGTON SENATOR SAID THE ACCORD WOULD BE A SIGNIFICANT BOOST FOR BOEING AND MCDONNELL DOUGLAS PRUDENTIAL INSURANCE IS PREPARING TO SELL UP TO 700 MILLION OF FORECLOSED COMMERCIAL REAL ESTATE A SIGN THAT INSURANCE COMPANIES BELIEVE THE MARKET IS IMPROVING FOR DISTRESSED PROPERTY TEXAS INSTRUMENTS SAID IT WILL BUILD A SEMICONDUCTOR DEVELOPMENT AND MANUFACTURING FACILITY FOR 750 MILLION TO 1 BILLION IN RESPONSE TO INCREASED MARKET DEMAND AND A NEED TO STAY AHEAD OF SHORTENING PRODUCT CYCLES DART GROUP'S HERBERT HAFT TRANSFERRED MAJORITY OWNERSHIP OF THE HAFT RETAILING EMPIRE TO HIS YOUNGER SON THE ONLY FAMILY ALLY HE HAS LEFT THE MOVE APPEARS AIMED AT INSULATING HERBERT HAFT'S STAKE IN A DIVORCE RESIDENTIAL FIXEDRATE MORTGAGES FELL THIS WEEK TO A 23YEAR LOW HELPING TO BOLSTER A STILLLACKLUSTER HOUSING MARKET AND A REFINANCING BOOM CARL ICAHN PLANS TO EXTRACT MORE THAN 1 BILLION IN CASH SECURITIES AND OTHER BENEFITS THROUGH A REFINANCING OF HIS ACF INDUSTRIES A RAILCAR CONCERN AN AIRLINE COMMISSION'S PROPOSAL TO PARTIALLY PRIVATIZE THE AIRTRAFFICCONTROL SYSTEM AND OTHER SUGGESTIONS WERE MET BY WHITE HOUSE SKEPTICISM CLAYTON HOMES ALLEGED THAT THE FORMER CONTROLLER FOR ITS RETAIL GROUP EMBEZZLED A SIZABLE AMOUNT OF MONEY FROM THE FOUNDER AND CHAIRMAN FOX AGREED TO PAY MORE THAN 55 MILLION FOR A PHILADELPHIA UHFTV STATION AMID A SPURT IN TVSTATION SALES MAXTOR AGREED TO SELL 40 OF THE DISKDRIVE MAKER TO SOUTH KOREA'S HYUNDAI ELECTRONICS FOR 150 MILLION SHORT INTEREST ON THE BIG BOARD CLIMBED 55 TO A RECORD AT MIDAUGUST CHRYSLER AGAIN LED THE LIST OF FIRMS WITH THE HIGHEST SHORT INTEREST GERMANY'S MONEY SUPPLY EXPANDED AT A FASTER RATE IN JULY BUT THE CENTRAL BANK IS EXPECTED TO PUT ASIDE NEW INFLATION WORRIES AND MOVE SOON FOR ANOTHER INTERESTRATE CUT THE MONEY SUPPLY ACCELERATION WAS DUE IN PART TO FOREIGNEXCHANGE INTERVENTION ON BEHALF OF OTHER CURRENCIES BONDS LEHMAN BROTHERS TREASURY INDEX 549553 UP 1916 COMMODITIES OIL 1765 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12384 OFF 154 SPOT INDEX 12395 UP 049 DOLLAR 10590 YEN UP 430 16875 MARKS UP 00075 9308200018 930820 WHAT'S THE LOWDOWN ON HIGHER 1994 CAR PRICES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERS WHO HAVEN'T BOUGHT A NEW CAR SINCE RONALD REAGAN WAS PRESIDENT AND THERE ARE MILLIONS OF THEM ARE STRUGGLING TO FIGURE OUT WHAT'S GOING ON WITH CAR PRICES CLEARLY PRICES ARE A LOT HIGHER THAN IN THE 1980S BUT EVEN AFTER POTENTIAL BUYERS ADJUST TO STICKER SHOCK THEY STILL HAVE TO SORT OUT CAR MAKERS' CONFLICTING STATEMENTS ABOUT PRICING STRATEGY FOR THE 1994 MODEL YEAR WHICH OFFICIALLY STARTS OCT 1 HERE ARE QUESTIONS AND ANSWERS ABOUT THE INDUSTRY'S PRICING PRONOUNCEMENTS Q HOW MUCH ARE BIG THREE CAR PRICES REALLY GOING UP THIS YEAR A THAT DEPENDS ON WHAT YOU BUY GENERAL MOTORS CORP SAYS IT WILL OFFER A BROAD ARRAY OF VALUE PRICED MODELS THAT WILL BE PRICED ABOUT THE SAME AS OR EVEN BELOW SIMILARLY EQUIPPED 1993 MODELS OVERALL GM AND CHRYSLER CORP HAVE SAID THEIR PRICE INCREASES WILL AVERAGE ABOUT 2 BUT HIGHER PRICES DON'T HAVE TO SHOW UP ON THE STICKER GM IS CUTTING PROFIT MARGINS ALLOTTED TO DEALERS ON MANY MODELS THUS BOOSTING ITS REVENUE PER CAR AND REDUCING A DEALER'S NEGOTIATING ROOM THE BIG THREE ARE ALL SCALING BACK CASH REBATES EFFECTIVELY INSTITUTING OFFSTICKER PRICE INCREASES Q WHAT'S THE BOTTOM LINE A ANALYSTS SAY STARTING PRICES FOR BIG THREE MODELS WILL BE UP 5 TO 7 Q SO WHERE'S THE VALUE IN VALUE PRICING A IF YOUR STYLE IS TO ORDER A STRIPPED DOWN BASE MODEL ADDING ONE OR TWO OPTIONS YOU'LL PROBABLY PAY MORE AND HAVE A HARD TIME FINDING WHAT YOU WANT THE BIG THREE AND THE JAPANESE ALL WANT TO CUT COSTS BY REDUCING THE NUMBER OF MODELS ON THE MARKET UNADORNED LOWPROFIT STRIPPER MODELS ARE THE FIRST TO GO THE VALUE IS CHIEFLY OFFERED TO CUSTOMERS WHO WANT CARS LOADED WITH COMFORT FEATURES Q SO DOES VALUE PRICING REALLY MEAN NO MORE HAGGLING A ONLY FOR MODELS THAT CONSUMERS AGREE ARE FAIRLY PRICED IF A VALUE PRICED CAR DOESN'T SELL DEALERS WILL BE TEMPTED TO BACK DOWN AND BARGAIN AWAY MORE OF THEIR MARGIN ALSO SETTING TRADEIN VALUES WILL STILL INVOLVE DICKERING Q WHY ARE JAPANESE PRICES GOING UP SO SHARPLY A BECAUSE WHEN TOYOTA OR NISSAN COLLECTS 10000 FROM THE SALE OF A CAR IN THE US IT PRODUCES ONLY ABOUT 1059000 YEN OF REVENUE BACK IN JAPAN BASED ON YESTERDAY'S EXCHANGE RATE OF 1059 YEN TO THE DOLLAR A YEAR AGO THE SAME SALE WOULD HAVE PRODUCED ABOUT 12 MILLION YEN EVEN AT 120 YEN TO THE DOLLAR MANY JAPANESE COMPANIES WERE STRUGGLING TO SHOW A PROFIT ON US SALES WHILE SOME JAPANESE CAR COMPANIES PRODUCE VEHICLES IN THE US THE CURRENCY LOSSES STILL AFFECT COSTS OF IMPORTED PARTS AND VEHICLES INDUSTRY EXECUTIVES EXPECT JAPANESE PRICES TO RISE 10 OR MORE IN THE NEXT FEW MONTHS DESPITE MAJOR COSTCUTTING EFFORTS OF COURSE THE HIGHER JAPANESE VEHICLE PRICES GO THE MORE MONEY DETROIT CAN DEMAND BY SHRINKING REBATES OR RAISING PRICES OUTRIGHT SEE RELATED ARTICLE AUTOS GOODBYE TO HAGGLING SAVVY CONSUMERS ARE BUYING THEIR CARS LIKE REFRIGERATORS WSJ AUG 20 1993 9308200017 930820 BUSINESS BRIEF PROPERTY TRUST OF AMERICA OFFERING OF PURCHASE RIGHTS IS DECLARED EFFECTIVE BY SEC PROPERTY TRUST OF AMERICA SAID ITS OFFERING OF RIGHTS TO PURCHASE 51 MILLION SHARES OF BENEFICIAL INTEREST AT 18375 A SHARE WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION THE SANTA FE NM REALESTATE INVESTMENT TRUST SAID IT WILL USE THE PROCEEDS OF THE OFFERING TO REPAY 75 MILLION OUTSTANDING ON A 125 MILLION REVOLVING CREDIT LINE AND TO MAKE ACQUISITIONS HOLDERS OF RECORD AS OF AUG 19 WILL RECEIVE A DIVIDEND OF ONE RIGHT FOR EACH PROPERTY TRUST SHARE THEY OWN SEVEN RIGHTS WILL BE REQUIRED TO PURCHASE ONE PROPERTY TRUST SHARE IN THE RIGHTS OFFERING THE RIGHTS WILL EXPIRE SEPT 17 SECURITY CAPITAL REALTY WHICH HOLDS A 244 STAKE IN PROPERTY TRUST INTENDS TO ACQUIRE 12 MILLION SHARES IN THE OFFERING THE COMPANY SAID THE COMPANY SAID THE OFFERING ISN'T BEING UNDERWRITTEN AN AFFILIATE OF THE REALESTATE INVESTMENT TRUST'S MANAGER SECURITY CAPITAL SW MULTIFAMILY INC WILL ACT AS PLACEMENT AGENT FOR UNSUBSCRIBED SHARES 9308200015 930820 PRIDE AND MISTRUST RACIAL HISTORY SPURS ILLINOIS TOWN TO TRY TO SAVE LOCAL COLLEGE THE SCHOOL ALWAYS OPEN TO BLACKS FACES MERGER WITH A WHITE INSTITUTION WHERE A CROSS ONCE BURNED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL EAST ST LOUIS ILL STATE COMMUNITY COLLEGE HAS NO GYM AND NO STUDENTACTIVITIES CENTER AND HAS HAD ITS ACADEMIC ACCREDITATION PUT ON PROBATION TWICE IT HAS TROUBLE PLACING ITS GRADUATES IN JOBS AND HAS BEEN THROUGH THREE PRESIDENTS IN THE PAST FIVE YEARS BUT NONE OF THESE SETBACKS HIT AS HARD AS A DECISION BY THE STATE OF ILLINOIS TO END NEARLY 18 MILLION IN ANNUAL SUBSIDIES THAT HAVE HELPED SUSTAIN THE JUNIOR COLLEGE SINCE IT WAS STARTED 24 YEARS AGO WITH ITS LIFESUPPORT SYSTEM CUT OFF THE BELEAGUERED COLLEGE HAS EMBARKED ON A TORTUOUS CAMPAIGN TO KEEP GOING ALONG THE WAY THE LOCAL COMMUNITY HAS COME FACE TO FACE WITH ITS TROUBLED RACIAL HISTORY THE SEAMY UNDERSIDE OF ITS ECONOMY AND THE EXTENT OF ITS PRIDE IN ITS JUNIOR COLLEGE DESPITE THE SCHOOL'S SHORTCOMINGS EAST ST LOUIS RESIDENTS HAVE BEEN PRESENTED WITH A POSSIBLE RESCUE FOR SCC ABSORPTION INTO BELLEVILLE AREA COLLEGE A TWOYEAR SCHOOL IN A NEIGHBORING CITY WITH A GOOD ACADEMIC REPUTATION SOLID FINANCES AND STRONG VOCATIONAL PROGRAMS THAT MAY LOOK GOOD ON PAPER A STRUGGLING SCHOOL GIVEN NEW LIFE FROM A STRONGER ONE BUT EAST ST LOUIS RESIDENTS DON'T THINK IT IS SUCH A GOOD IDEA AT ALL THAT IS BECAUSE THE TWO CITIES HAVE POISONED RACE RELATIONS SCC'S STUDENTS AND FACULTY ARE PREDOMINANTLY BLACK WHILE BELLEVILLE AREA COLLEGE IS MOSTLY WHITE MIRRORING THE CITY OF BELLEVILLE SCC WAS ESTABLISHED IN THE LATE 1960S BECAUSE BELLEVILLE AREA COLLEGE DREW UP THE DISTRICT IT SERVED IN A WAY THAT EXCLUDED APPLICANTS FROM EAST ST LOUIS WHICH IS MOSTLY BLACK AND POOR AGAINST THAT SOUR BACKGROUND THE BELLEVILLE BAILOUT PLAN IS FALLING FLAT IN EAST ST LOUIS EVEN THOUGH THE PRICE OF INDEPENDENCE WILL ALMOST CERTAINLY BE HIGHER TAXES FOR ITS ALREADY HIGHLY TAXED RESIDENTS FOLKS HERE ARE TOO POOR TO PAY ANOTHER DIME IN PROPERTY TAXES SAYS ARTIS TALLEY A COMMUNITY ACTIVIST AND HOUSING DEVELOPER BUT THERE IS NO WAY WE CAN ACCEPT THE WHITE FOLKS ON THE HILL TO COME HERE AND RUN OUR COLLEGE HE SAYS THERE IS ANOTHER REASON EAST ST LOUIS RESIDENTS ARE AVERSE TO TURNING OVER THEIR LOCAL COLLEGE DESPITE ITS CURRENT ECONOMIC STRAITS SCC SITS ON 34 STATEOWNED ACRES OF VALUABLE MISSISSIPPI WATERFRONT PROPERTY THAT HAS BEEN SPARED THIS SUMMER'S DEVASTATING FLOODS A GAMBLING BOAT JUST OPENED ON ITS BANKS AND A NEW LIGHT RAIL SYSTEM IS SLATED TO HAVE A STOP THERE A NATIONAL PARK THAT ATTRACTS ABOUT THREE MILLION VISITORS A YEAR PLANS TO EXPAND OVER THE WATER FROM ST LOUIS MO GIVEN THE HISTORY OF ANTIPATHY BETWEEN THE BLACK AND WHITE COMMUNITIES PEOPLE IN EAST ST LOUIS ARE SUSPICIOUS OF WHY SOME BELLEVILLE RESIDENTS HAVE EXPRESSED AN INTEREST IN SCOOPING UP THE FLOUNDERING COLLEGE THE REASON THEY WANT US NOW IS BECAUSE WE ARE A STONE'S THROW AWAY FROM THE GAMBLING DOCK SAYS SCC STUDENT COUNSELOR FRANK NAVE THOSE SUSPICIONS DEEPENED WHEN MARK LEVY A BELLEVILLE ATTORNEY AND SCHOOLBOARD MEMBER CAME OUT AS A BIG SUPPORTER OF LEGISLATION THAT WOULD GIVE BELLEVILLE THE OPTION TO CLOSE SCC IN SEVEN YEARS FOLLOWING A MERGER THE PROPOSAL FAILED BUT MAY BE REINTRODUCED BUT BAC OFFICIALS SAY THEY ARE NOT INTERESTED IN GAINING CONTROL OF THE LAND AND WOULD RELINQUISH IT IF IT EVER OPTED TO CLOSE THE SCHOOL THE LEGACY OF MISTRUST BETWEEN THE TWO CITIES RUNS DEEP A PROMINENT GATE MORE OR LESS SEPARATES AFFLUENT BELLEVILLE FROM SCRUBBY EAST ST LOUIS SERVING AS A SYMBOL OF THE RACIAL DIVIDE IN 1988 TWO WHITE BELLEVILLE MEN PLEADED GUILTY TO BURNING A CROSS ON THE LAWN OF A BLACK FAMILY WHO HAD JUST MOVED INTO THE TOWN TWO YEARS AGO THE BELLEVILLE NEWSDEMOCRAT FOUND THAT BLACKS RECEIVED A DISPROPORTIONATELY HIGH PERCENTAGE OF TRAFFIC TICKETS FROM BELLEVILLE POLICE SO SCC A COLLEGE CONSISTING OF ONE NONDESCRIPT BUILDING OF TAN BRICKS HAS BECOME THE UNLIKELY SYMBOL OF THIS COMMUNITY'S DESIRE TO TAKE CONTROL OF ITS ECONOMIC DESTINY AND EMPOWER ITS RESIDENTS THOUGH RESIDENTS SEEM APATHETIC ABOUT THE WEEDS DRAINAGE PONDS AND VACANT BUILDINGS THAT MARK THE CITY THEY ARE DETERMINED TO KEEP SCC ALIVE AND INDEPENDENT BRENDA SMITH A 43YEAROLD SINGLE MOTHER OF FIVE AND A LIFETIME EAST ST LOUIS RESIDENT GRADUATED FROM SCC IN MAY AND WILL ENTER SOUTHERN ILLINOIS UNIVERSITY IN CARBONDALE NEXT MONTH AS A POLITICAL SCIENCE MAJOR THIS SCHOOL IS RIGHT HERE IN THE COMMUNITY SHE SAYS OF SCC AND I WAS ENCOURAGED TO TRY MY OWN HOMEGROWN SCHOOL IN ADDITION TO FURTHERING HER EDUCATION AND ADVANCING HER CAREER MS SMITH SAYS THAT ATTENDING SCC ENABLED HER TO SERVE AS A ROLE MODEL IN HER COMMUNITY MY KIDS WILL SAY IF MOM CAN DO IT SO CAN I' SHE SAYS RACE RELATIONS ASIDE BELLEVILLE IS THE BETTER SCHOOL IT HAS STATEOFTHEART AVIATION AND COMPUTER TECHNOLOGY COURSES AND A HIGH SUCCESS RATE IN PLACING GRADUATES IN JOBS SCC'S COURSES ON THE OTHER HAND TEND TO BE GEARED MORE TOWARD ACADEMICS RATHER THAN VOCATIONAL SKILLS AND IT OFTEN HAS A TOUGH TIME PLACING STUDENTS FOR THESE REASONS JOSEPH CIPFL PRESIDENT OF BELLEVILLE AREA COLLEGE SAYS STUDENTS FROM EAST ST LOUIS WOULD BENEFIT FROM A MERGER OF THE SCHOOLS MUCH MORE WOULD BE ACHIEVED IF WE WORKED TOGETHER AS A REGION BUT THESE LONGSTANDING RACIAL PROBLEMS ARE GETTING IN THE WAY OF THE NORMAL DECISIONMAKING PROCESS HE SAYS IN EAST ST LOUIS THE REV JOHN ROUSE HEAD OF THE MOUNT ZION BAPTIST CHURCH ALSO BELIEVES SCC STUDENTS WOULD BENEFIT FROM A MERGER WE'VE GOT TO BE ABLE TO SAY TO PEOPLE HEY WHEN YOU GRADUATE FROM HERE YOU'RE GOING TO HAVE A JOB' HE SAYS RIGHT NOW WE CAN'T DO THAT NEVERTHELESS MR ROUSE IS BACKING THE DRIVE TO KEEP SCC INDEPENDENT IF ALL ELSE FAILS I DON'T WANT THE COMMUNITY TO SAY WE COULD HAVE SUCCEEDED IF ROUSE HAD BEEN WITH US' HE SAYS FOR THE SCC BOOSTERS THE PROBLEM IS THAT EAST ST LOUIS IS CHRONICALLY BROKE ONCE WHEN IT WAS TOO STRAPPED TO MAKE A COURTORDERED CASH SETTLEMENT TO A PRISONER BEATEN BADLY IN JAIL BY ANOTHER INMATE THE TOWN WAS ORDERED TO GIVE HIM CITY HALL AND A 320ACRE CITY DUMP THE ORDER TO HAND OVER CITY HALL WAS LATER RESCINDED BUT THE MAN STILL GOT TO KEEP THE DUMP THE PEOPLE ARE POOR AS WELL THE UNEMPLOYMENT RATE IN THE CITY STANDS ABOVE 14 PER CAPITA INCOME IS A MERE 6421 ACCORDING TO THE 1990 CENSUS TO HANG ON TO THE COLLEGE AND THE REAL ESTATE IT SITS ON SOME CITIZENS HERE HAVE PROPOSED A SIN TAX OF SORTS AND ARE STRUGGLING TO GET 4200 SIGNATURES OF SUPPORT BY TOMORROW TO GET THE REFERENDUM PUT ON THE BALLOT SO FAR ABOUT 3800 PEOPLE HAVE SIGNED THE SPONSORS SAY THE TAX WOULD BE LEVIED ON THE ASSORTMENT OF HOT SHEET MOTELS IN EAST ST LOUIS WHERE CUSTOMERS GENERALLY CHECK IN FOR JUST AN HOUR ALSO TAXED WOULD BE THE NEW GAMBLING RIVERBOAT CALLED THE CASINO QUEEN IT HAS BEEN DOING A BOOMING BUSINESS EVEN THOUGH THE RIVER IS NOW SO HIGH FROM FLOODING THAT THE BOAT ISN'T PERMITTED TO LEAVE THE DOCK A TAX ALSO WOULD BE LEVIED ON STRIPTEASE JOINTS SUCH AS CHEEKS AND THE RED GARTER WHICH AREN'T IN EAST ST LOUIS PROPER BUT ABOUND IN A NEARBY TOWN SERVED BY SCC THE PROPOSAL COULD SAVE SCC AND SPARE EAST ST LOUIS FROM HAVING TO RAISE PROPERTY TAXES ON ITS RESIDENTS BACKERS FIGURE IT WOULD RAISE 38 MILLION A YEAR HALF COULD GO TO SCC THE REST TOWARD DEVELOPMENT IN EAST ST LOUIS AND SEVERAL NEIGHBORING COMMUNITIES I'M FOR ANYTHING THAT TAXES SIN SAYS MR ROUSE THE MINISTER IF THE TAX PLAN DOESN'T FLY EAST ST LOUIS RESIDENTS WILL VOTE IN NOVEMBER 1994 ON WHETHER TO MERGE SCC INTO BELLEVILLE OR RAISE LOCAL PROPERTY TAXES BUT THIS NEW PLAN TO SAVE THE SCHOOL HAS ONE NOTABLE DISSENTER GORDON BUSH EAST ST LOUIS'S MAYOR I FEEL WE HAVE A GOLDEN OPPORTUNITY TO HAVE AN AFROAMERICAN COLLEGE RUN CHIEFLY BY AFRICANAMERICAN PERSONS BUT I'M NOT FOR DOING IT BY RAISING TAXES OF ANY KIND SAYS MAYOR BUSH CRITICS SAY THE MAYOR'S OPPOSITION IS PURELY POLITICAL OWNERS OF THE CASINO QUEEN THE GAMBLING BOAT CONTRIBUTED ABOUT 25000 TO THE CAMPAIGNS OF CITY COUNCIL CANDIDATES CLOSE TO THE MAYOR ACCORDING TO CAMPAIGN RECORDS MAYOR BUSH SAYS THE CONTRIBUTIONS HAVE NOT AFFECTED HIS VIEWS BUT BEHIND THE TAX DEBATE IS THE CONVICTION THAT BLACK RESIDENTS OF EAST ST LOUIS WOULD NOT BE WELL TREATED AT THE LARGELY WHITE COLLEGE IN BELLEVILLE AND IN BELLEVILLE MANY PEOPLE AREN'T ENTHUSIASTIC ABOUT THE MERGER PLAN EITHER IF WE'RE GOING TO CONSOLIDATE WE SHOULD CONSOLIDATE UP SAYS TED FARMER A BELLEVILLE BOARD MEMBER FOR BLACK STUDENTS BELLEVILLE DOESN'T NECESSARILY REPRESENT A MOVE UP LINDA B BROWN DIRECTOR OF THE TRANSFER PROGRAM AT SCC SAYS SHE TALKS TO BLACK STUDENTS AT BELLEVILLE AREA COLLEGE WHO DECIDE TO TRANSFER TO SCC OFTEN BLACK STUDENTS ARE THE ONLY MINORITY IN THE CLASS AT BELLEVILLE AND THEY SOMETIMES FEEL UNCOMFORTABLE SHE SAYS BAC IS NOT SENSITIVE TO THE NEEDS OF PEOPLE OF COLOR SCC'S NEW PRESIDENT ROBERT RANDOLPH SAYS HE HAS TAKEN STEPS TO ADDRESS THE SCHOOL'S SHORTCOMINGS BY HIRING A NEW DIRECTOR OF VOCATIONAL TRAINING AND A NEW DEAN OF STUDENTS THESE STEPS HE SAYS SHOULD HELP THE SCHOOL STAND ON ITS OWN WITHOUT A MERGER I THINK THE SCHOOL SHOULD REMAIN INDEPENDENT HE SAYS MARK LEVY A MEMBER OF THE BELLEVILLE AREA COLLEGE SCHOOL BOARD IS AN ATTORNEY PRACTICING IN COLLINSVILLE ILL IN A PAGEONE ARTICLE FRIDAY ON EFFORTS TO SAVE STATE COMMUNITY COLLEGE IN EAST ST LOUIS ILL HE WAS INCORRECTLY REFERRED TO AS A BELLEVILLE ATTORNEY 9308200014 930820 LETTERS TO THE EDITOR GERMANY STILL GRANTS POLITICAL ASYLUM IN YOUR JULY 8 PAGEONE ARTICLE ON ILLEGAL IMMIGRATION IN EUROPE YOU COMMENT ON THE IMMIGRATION POLICIES OF EUROPEAN COUNTRIES YOU WRITE BURNED BY RACISM GERMANY STOPPED HEARING MOST ASYLUM PLEAS AS OF JULY 1 NOT TRUE GERMANY CONTINUES TO GRANT POLITICAL ASYLUM THE NEW REGULATIONS CLOSING THE DOOR TO THOSE WHO ARE EVIDENTLY NOT VICTIMS OF POLITICAL PERSECUTION HAVE NOTHING TO DO WITH RACISM THE POLITICAL DEBATE ABOUT CHANGING THE ASYLUM LAWS BEGAN LONG BEFORE THE RECENT OUTBREAKS OF XENOPHOBIC VIOLENCE WHEN THE WORDS POLITICAL ASYLUM UTTERED BY ANY FOREIGNER COMING TO GERMANY BECAME KNOWN AS THE MAGIC TERM FOR RECEIVING INSTANT SOCIAL BENEFITS HOUSING AND A TEMPORARY RESIDENCE PERMIT IT BECAME OBVIOUS THAT SOMETHING HAD TO BE DONE TO LIMIT THE ASYLUM PROCEDURE TO THOSE FOR WHOM IT WAS MEANT IN THE FIRST PLACE GERMANY IS FIGHTING RACISM BY PENALIZING ITS VICTIMS WITHHOLDING CITIZENSHIP FROM TURKS BORN THERE AGAIN NOT TRUE IT IS GOVERNMENT POLICY THAT FOREIGNERS WHO HAVE DECIDED THAT GERMANY HAS BECOME THEIR HOME SHOULD ALSO BECOME GERMAN CITIZENS AT PRESENT FOREIGNERS BETWEEN THE AGES OF 16 AND 23 ARE GRANTED GERMAN CITIZENSHIP UPON REQUEST AFTER EIGHT YEARS OF LEGAL RESIDENCE AND SIX YEARS OF SCHOOL ATTENDANCE FOR OLDER FOREIGNERS THE RESIDENCY REQUIREMENT IS 15 YEARS IN BOTH CASES THE IMMIGRANT HAS TO GIVE UP HIS OR HER PREVIOUS CITIZENSHIP RECENTLY THE GERMAN GOVERNMENT DECLARED ITS INTENTION TO FACILITATE NATURALIZATION OF SECOND GENERATION IMMIGRANTS 9308200013 930820 BUSINESS BRIEF GLENFED INC HOLDERS BACK STOCK ISSUE OF 425 MILLION TO HELP UNIT GLENFED INC SAID SHAREHOLDERS APPROVED A PLAN TO REVIVE ITS AILING GLENDALE FEDERAL BANK UNIT WITH AN INFUSION OF 425 MILLION A PLAN THAT NOW SEEMS LIKELY TO SUCCEED BECAUSE OF BACKING FROM OUTSIDE INVESTORS THE GLENDALE CALIF THRIFT WHICH HAS FLIRTED WITH REGULATORY SEIZURE FOR SEVERAL YEARS BECAUSE OF LOW CAPITAL LEVELS IS NOT OUT OF THE WOODS IT IS CARRYING A LARGE LOAD OF PROBLEM LOANS THAT WILL CREATE A DRAG ON FUTURE EARNINGS AND IT MUST RAISE SOME ADDITIONAL CAPITAL TO MEET HIGHER MINIMUM REQUIREMENTS BY THE END OF 1994 UNDER THE PLAN GLENFED WILL ISSUE 250 MILLION IN COMMONSTOCK RIGHTS AND 175 MILLION IN CONVERTIBLE PREFERRED STOCK AN INVESTMENT BANKER WITH FIRST BOSTON CORP GLENFED'S ADVISOR SAID THAT INSTITUTIONAL INVESTORS HAVE AGREED TO PURCHASE THE PREFERRED PLUS WHATEVER COMMONSTOCK RIGHTS THAT EXISTING SHAREHOLDERS CHOOSE NOT TO EXERCISE 9308200012 930820 FOREIGN EXCHANGE IN ABRUPT SHIFT US INTERVENES TO SLOW YEN'S HISTORIC RISE STRONG CURRENCY HAS HURT JAPAN'S INDUSTRY TOKYO HINTS AT A NEW ATTITUDE MR MATSUSAKA SEES A BARGAIN BY STAFF REPORTERS JOHN BUSSEY AND MICHAEL WILLIAMS IN TOKYO AND ALAN MURRAY IN WASHINGTON IN A REMARKABLE INDICATION OF JAPAN'S POSTWAR ECONOMIC TRIUMPH THE YEN NEARLY REACHED PARITY WITH THE US PENNY THIS WEEK HITTING A RECORD 10040 TO THE DOLLAR ON TUESDAY THEN YESTERDAY AN ABRUPT ABOUTFACE IN US POLICY AT LEAST TEMPORARILY HALTED THE HISTORIC ASCENT THE US GOVERNMENTAFTER SAYING FOR MONTHS THAT THE DOLLAR SHOULD BE WEAKERINTERVENED HEAVILY IN FOREIGNEXCHANGE MARKETS BY SELLING YEN AND BUYING DOLLARS LEADING SURPRISED TRADERS TO DRIVE THE RATE BACK TO 10590 YEN TO THE DOLLAR IN LATE NEW YORK TRADING ABOUT MIDDAY FRIDAY IN TOKYO THE YEN WAS QUOTED AT 10472 TO THE DOLLAR US OFFICIALS WERE QUICK TO SAY THEY HAVE NO INTENTION OF PLACING A CEILING ON THE YEN'S VALUE THERE ALSO IS NO CERTAINTY THE DOLLAR WILL HOLD ITS NEW POSITION AGAINST THE YEN TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID THE POLICY REVERSAL WAS PARTLY INTENDED AS AN ENCOURAGING RESPONSE TO SIGNS THAT THE JAPANESE ARE MOVING TO STIMULATE THEIR ECONOMY BY CUTTING INTEREST RATES SOMETHING THE US HAS SOUGHT FOR SOME DAYS EARLIER THIS WEEK THE JAPANESE CENTRAL BANK ALLOWED A KEY INTEREST RATE TO DROP BY A QUARTER PERCENTAGE POINT AND US OFFICIALS APPARENTLY BELIEVE THAT RATES MAY DROP FURTHER WHAT'S MORE THE JAPANESE GOVERNMENT STEPPED UP ITS REQUESTS FOR HELP FROM ITS ALLIES IN THE GROUP OF SEVEN INDUSTRIALIZED NATIONS TO STOP THE YEN'S RISE THE US ALSO FEARED THAT A SURPRISINGLY LARGE INCREASE IN THE US TRADE DEFICIT ANNOUNCED YESTERDAY MIGHT SEND THE DOLLAR PLUMMETING ABSENT SUPPORT FROM THE FEDERAL RESERVE SOME TRADERS SPECULATED YESTERDAY THAT THE US GOVERNMENT'S INTERVENTION MIGHT HAVE BEEN ITS PART OF A QUID PRO QUO DEAL WITH THE JAPANESE IN WHICH JAPAN AGREED TO EASE ACCESS TO ITS MARKETS IN THE US THE ROUGHLY 20 RISE IN THE YEN AGAINST THE DOLLAR SINCE THE BEGINNING OF THE YEAR HAS HELPED MANY AMERICAN COMPANIES BY MAKING THEIR GOODS MORE PRICECOMPETITIVE OVERSEAS AND MAKING JAPANESE GOODS MORE EXPENSIVE IN DOLLAR TERMS IN THE US THE US HAS HOPED THE STRONGER YEN ALONG WITH OTHER MEASURES WILL TRIM JAPAN'S MAMMOTH TRADE SURPLUS WITH AMERICA THE STRONG YEN HOWEVER ALSO FORCES STILLSTRAPPED AMERICAN CONSUMERS TO PAY MORE FOR JAPANESE PRODUCTS BUT IT IS IN JAPAN THAT THE MOST STRIKING AND PERHAPS THE MOST SERIOUS CONCERNS LIE RIGHT NOW INDEED THE YEN IS THE PROBLEM THE DOLLAR HAS BEEN RISING AGAINST MOST OTHER CURRENCIES ALTHOUGH THE YEN'S STRENGTH REFLECTS THE REMARKABLE GROWTH OF THE JAPANESE ECONOMY IN THE PAST 48 YEARS THE JAPANESE ARE WORRIED ABOUT THE DAMAGE THE SURGING YEN IS DOING TO BUSINESS AND ABOUT DEEP DISTORTIONS IN THEIR ECONOMY THAT HELPED FUEL THAT RISE IN FACT TO THEM THE YEN'S ASCENT IS A FLASHING RED LIGHT THE GOVERNMENT HAS TO SHOW LOTS OF RESOLVE TO PASS ON THE BENEFITS OF THE STRONGER YEN TO JAPANESE CONSUMERS DECLARES MIKIO WAKATSUKI A FORMER DEPUTY GOVERNOR OF JAPAN'S CENTRAL BANK IF THEY DON'T A LOT OF JAPANESE EXPORT INDUSTRIES WILL BE ELIMINATED THIS WEEK IN FACT A SUBCONTRACTOR FOR SANYO ELECTRIC CORP SAID IT WILL CLOSE A STEREO FACTORY CITING THE STRONG YEN ECONOMISTS ARE TRIMMING FORECASTS FOR JAPAN'S GROWTH THIS YEAR WORRIED POLITICIANS ARE SUDDENLY TALKING VERY UNJAPANESE TALK ABOUT JAPAN'S TRADE BARRIERS JAPANESE MARKETS ARE EXTREMELY CLOSED IN INVISIBLE WAYS JAPAN'S NEW TRADE MINISTER HIROSHI KUMAGAI CONFESSED LAST WEEK OUR WAYS MUST BE CORRECTED IF JAPANESE BUSINESS HOPES TO SURVIVE IN THE INTERNATIONAL COMMUNITY THIS NEW MENTALITY IS LARGELY JUST RECOGNITION OF AN OLD REALITY ALTHOUGH A LOT OF FORCES HAVE BEEN DRIVING UP THE YEN A CRUCIAL ONE IS JAPAN'S INABILITY TO RECYCLE THE MONEY IT EARNS ON ITS HUGE EXPORTS BY BUYING MORE PRODUCTS ABROAD THAT IS THE DISTORTION WORRYING EVERYONE WHEN JAPAN SELLS GOODS OVERSEAS THE PROCEEDS ARE EVENTUALLY CONVERTED TO YEN DRIVING UP DEMAND FOR THE CURRENCY AND THUS ITS VALUE IN MOST CAPITALIST ECONOMIES SAVVY CONSUMERS AND COMPANIES QUICKLY TAKE THEIR STRONGER CURRENCY AND BUY IMPORTS BIDDING UP THE VALUE OF COMPETING CURRENCIES AND DRIVING THEIR OWN BACK DOWN NOT IN JAPAN THE NOTORIOUS BARRIERS TO MOST IMPORTS CLUBBY BUSINESS RELATIONS THAT INHIBIT FOREIGN COMPETITION A DISTRIBUTION SYSTEM THAT JACKS UP PRICES REGULATIONS THAT PROTECT INEFFICIENT BUSINESSES ARE LARGELY RESPONSIBLE FOR KEEPING IMPORTS FROM GROWING FAST ENOUGH TO OFFSET THE ENORMOUS TRADE SURPLUS THE DISTORTION SHOWS UP IN A VARIABLE THAT DOES MOVE THE YEN AND OVER THE PAST SEVEN MONTHS IT HAS BEEN SKYROCKETING HOW DOES ALL THIS AFFECT THE CONSUMER EIJI MATSUSAKA A 34YEAROLD PHOTOGRAPHER IN TOKYO RECENTLY SHOPPED FOR A CAMERA AND FOUND ONE HE LIKES FOR 350000 YEN 3305 HE DISCOVERED HOWEVER THAT THE SAME CAMERA RETAILS FOR 1300 IN NEW YORK WHAT A BARGAIN HE SAYS MOST JAPANESE JUST GRUMBLE AND PAY THE HIGHER PRICE BUT MR MATSUSAKA IS PLANNING A BUYING TRIP TO THE US LATER THIS YEAR IN JAPAN ONLY A SMALL PART OF THE WINDFALL GAIN OF THE RISE IN THE CURRENCY IS CHANNELED THROUGH TO THE CONSUMER SAYS KENNETH COURTIS AN ECONOMIST AT DEUTSCHE BANK AG IN TOKYO IT REMAINS LOCKED UP IN THE CORPORATE SIDE AND THE CORPORATION USES IT TO ADJUST TO THE NEW COST STRUCTURE CREATED BY THE STRONG YEN THAT ALSO IS THE VIEW OF SOME IN JAPAN'S NEW COALITION GOVERNMENT AFTER CAMPAIGNING ON A VAGUE PROCONSUMER PLATFORM THE OFFICIALS NOW SAY THEY PLAN TO FIGHT THE TRADE SURPLUS BY DEREGULATING GIVING PRIORITY TO THE CONSUMER AND IMPROVING ACCESS TO THE JAPANESE MARKET ON THURSDAY IN JAPAN AFTER HOLDING A SPECIAL CABINET MEETING ON THE YEN AND THE ECONOMY THE GOVERNMENT REPEATED ITS CONSUMERIST RHETORIC BUT FAILED TO DELIVER SPECIFIC MEASURES TO ENCOURAGE IMPORTS A MINISTRY OF FINANCE ADVISORY PANEL MEANWHILE HAS ALREADY CONCLUDED THAT GOVERNMENT PROTECTION OF BUSINESS IS KEEPING CONSUMER PRICES HIGH ONE SURVEY FOUND JUST 44 OF JAPANESE BELIEVE THAT THE STRONG YEN HAS MADE PRODUCTS CHEAPER JAPAN'S TRADE SURPLUS A STUNNING 1066 BILLION IN 1992 IS EXPECTED TO SURGE TO MORE THAN 130 BILLION THIS YEAR IT IS RISING PARTLY BECAUSE THE VALUE OF THE DOLLARDENOMINATED SURPLUS INCREASES AS THE YEN BUYS MORE DOLLARS BUT SOME ECONOMISTS EXPECT A PLATEAUING OR EVEN A CONTRACTION OF THE SURPLUS NEXT YEAR ROBERT FELDMAN AN ECONOMIST AT SALOMON BROS INC SAYS THE TURNING POINT MAY HAVE COME LAST SPRING WHEN THE THREEMONTH RUNNING AVERAGE OF JAPAN'S SURPLUS BEGAN DECLINING EVER SO SLIGHTLY IN FACT THE GROWTH IN THE VOLUME OF JAPAN'S IMPORTS HAS RECENTLY EXCEEDED THE GROWTH IN THE VOLUME OF EXPORTS WHAT THE STRONG YEN SAYS TO ME IS THAT STANDARD ECONOMIC FORCES REALLY DO WORK HE SAYS NEVERTHELESS SEVERAL FACTORS COULD EXACERBATE THE TRADE SURPLUS AND KEEP THE YEN STRONG JAPAN IS IN A SLUMP IN THE FISCAL YEAR ENDING NEXT MARCH ECONOMIC GROWTH ISN'T EXPECTED TO EXCEED 15 THE CONSUMER IS HUNKERED DOWN DEPRESSING DOMESTIC DEMAND AND THUS IMPORTS MUCH OF INDUSTRY IS SADDLED WITH EXCESS CAPACITY THE MOST IN 20 YEARS BY SOME ESTIMATES AND SO ISN'T LIKELY TO BE SPENDING MUCH SOON MOST ECONOMISTS' PROJECTIONS FOR GROWTH IN JAPAN ASSUME SIZABLE FISCAL STIMULUS SUCH AS A BIG TAX CUT BUT JAPAN'S NEW INEXPERIENCED GOVERNMENT MAY LACK THE POLITICAL HEFT TO PUSH THROUGH ANY SUCH MEASURE MUCH OF JAPAN'S TRADE SURPLUS TRADITIONALLY HAS BEEN RECYCLED THROUGH JAPANESE INVESTMENT ABROAD PURCHASES OF REAL ESTATE COMPANIES AND SECURITIES BUT THAT IS LESS TRUE TODAY BECAUSE JAPANESE COMPANIES ARE PINCHED AT HOME THOUGH THEY ARE RECYCLING SOME MONEY BY PAYING OFF SHORTTERM DEBT ABROAD OVERSEAS DIRECT INVESTMENT IN THINGS SUCH AS PROPERTY FELL LAST YEAR TO 17 BILLION FROM 30 BILLION IN 1991 IN THE FIRST FIVE MONTHS OF THIS YEAR IT WAS DOWN TO ABOUT 5 BILLION THE SCENARIO LAID OUT BY PESSIMISTS IN TOKYO GOES LIKE THIS IF DOMESTIC DEMAND STAYS WEAK AS MOST EXPECT THE DEMAND FOR IMPORTS WON'T EXPAND MUCH THE TRADE SURPLUS WILL STAY HIGH OR GROW FURTHER AND THE YEN WILL REMAIN STRONG EXPORTERS STRUGGLING TO CUT COSTS AT HOME TO MAKE UP FOR DIMINISHED PROFITS ABROAD WILL SQUEEZE SUPPLIERS AND EMPLOYEES TO HOLD DOWN PRICES AND WAGES DEFLATION WILL SEEP THROUGH THE ECONOMY MAKING EVERYONE FEEL POORER AND FURTHER WEAKENING DOMESTIC DEMAND THESE DAYS JAPAN'S MOST INEFFICIENT INDUSTRIES ARE GETTING OFF THE LIGHTEST RICE FARMERS FOR EXAMPLE ARE PROTECTED BY GOVERNMENT REGULATION THEY MAKE UP FOR THEIR OWN INEFFICIENCY BY CHARGING CONSUMERS EXORBITANT PRICES BATTERED MANUFACTURERS TAKING THE BRUNT OF THE YEN'S RISE HAVE BEEN JAPAN'S HIGHLY COMPETITIVE MANUFACTURING EXPORTERS IN REACTION THEY WILL MOVE MORE AND MORE PRODUCTION ABROAD WHERE COSTS ARE LOWER AND THAT MAY SLOWLY HOLLOW OUT PARTS OF JAPAN'S MANUFACTURING BASE JUST AS IT DID IN THE US IN THE LATE 1980S IN CONTRAST JAPANESE EXPORTERS ENDURED A BAD BOUT OF ENDAKA HIGH YEN BUT A TREMENDOUS BOOM IN JAPANESE CONSUMPTION BAILED THEM OUT NOW HOWEVER SUCH A RESCUE SEEMS UNLIKELY JARDINE FLEMING SECURITIES LTD EXPECTS JAPAN'S ANNUAL AUTO SALES FOR EXAMPLE TO STAY ESSENTIALLY FLAT THROUGHOUT THE 1990S EXPORTERS HAVE BEEN SWEATING BULLETS FOR MONTHS WHEN THE JAPAN EXTERNAL TRADE ORGANIZATION SURVEYED MANUFACTURERS IN LATE APRIL ONLY 21 OF 527 COMPANIES SAID THEY COULD MAKE MONEY ON EXPORTS IF THE YEN GREW STRONGER THAN 110 TO THE DOLLAR DAIWA RESEARCH INSTITUTE ESTIMATES THAT 10 OF THE NATION'S 11 AUTO MAKERS WILL LOSE MONEY IF THE YEN HITS AND STAYS AT 100 TO THE DOLLAR HOW DO THE COMPANIES COPE THEY RAISE PRICES ABROAD TO MAKE UP FOR THE FACT MORE DOLLARS FOR EXAMPLE ARE NEEDED TO BUY THE SAME AMOUNT OF YEN MINOLTA CAMERA CO RAISED PRICES OF EXPORT CAMERAS BY 5 IN APRIL AND ANOTHER 8 IN JULY TOYOTA MOTOR CORP RAISED ITS US PRICES AN AVERAGE OF 12 IN FEBRUARY ITS CHAIRMAN SAYS A CONSIDERABLE PRICE RISE MAY BE IN THE OFFING SOME EXPORTERS ARE ALSO SLASHING COSTS MUCH AS THEY DID DURING THE LAST ENDAKA HONDA MOTOR CO HAS CONSOLIDATED THREE PRODUCTION LINES AT A BIG JAPANESE FACTORY INTO TWO OTHER COMPANIES ARE CONSIDERING DEEPER CUTS I DON'T THINK THERE'S A TABOO AGAINST DISCUSSING PAY CUTS NIPPON STEEL CORP'S PRESIDENT TAKASHI IMAI SAID RECENTLY BREAKING A JAPANESE TABOO BUT THE MAIN STRATEGY IS TO SHIFT PRODUCTION OVERSEAS TOYOTA IS JUST A FEW YEARS SHY OF COMPLETING A MAMMOTH PROJECT TO EXPAND ITS OVERSEAS CAPACITY BY MORE THAN 600000 CARS A YEAR ACCORDING TO INDUSTRIAL BANK OF JAPAN JAPANESE AUTO MAKERS PRODUCED 8 OF THEIR CARS ABROAD IN 1985 BUT BY 2000 THAT WILL RISE TO 42 MEANWHILE OUTPUT AT PLANTS IN JAPAN WILL FALL TO 109 MILLION CARS BY THE TURN OF THE CENTURY DOWN 20 FROM THE 1990 PEAK IN THE ELECTRONICS INDUSTRY AIWA CO SAYS IT WILL BUILD AN AUDIOEQUIPMENT FACTORY IN MALAYSIA AS PART OF A PLAN TO MAKE 75 OF ITS PRODUCTS OVERSEAS UP FROM 66 NOW MITSUBISHI ELECTRIC CORP HAS GIVEN UP MANUFACTURING VIDEOCASSETTE RECORDERS IN JAPAN FOR EXPORT EXPORTS DON'T PAY A SPOKESMAN EXPLAINS THERE'S NO COMPETITIVE COST EDGE ANYMORE BLUECHIP JAPANESE MANUFACTURERS INSIST THAT THE MOVES ABROAD WILL NOT CAUSE JOB LOSSES AT HOME ELECTRONICS COMPANIES FOR INSTANCE SAY THEY ARE MAKING JUST LOWTECH PRODUCTS OVERSEAS AND WILL USE THE IDLED DOMESTIC FACTORIES TO PRODUCE HIGHVALUEADDED GOODS IN JAPAN NOT SO SAYS CHUCK GOTO AN ANALYST AT SG WARBURG SECURITIES HE AGREES THAT A FEW HIGHTECH HITS SUCH AS MINIDISK PLAYERS WILL TAKE UP PRODUCTION SLACK IN JAPAN YET HE CONTENDS THAT MOVING PRODUCTION OF HIGHVOLUME ITEMS SUCH AS COLORTV SETS ABROAD WILL FORCE JAPANESE COMPANIES TO TRIM EXCESS CAPACITY LIKE US COMPANIES DID IN THE 1970S IN THE SHORT TERM MOST ECONOMISTS SAY JAPAN'S UNEMPLOYMENT RATE NOW 25 OF THE LABOR FORCE IS UNLIKELY TO TOP 3 THEY SAY JAPANESE COMPANIES ARE STILL SQUEAMISH ABOUT LAYOFFS AND SO CARRY EMPLOYEES WHETHER THERE IS WORK FOR THEM OR NOT BUT THE PRESSURE TO CUT PAYROLLS IS RISING SANRITSU DENKI CO A SUBCONTRACTOR TO SANYO ELECTRIC IS CLOSING A FACTORY AND LETTING GO 168 EMPLOYEES BECAUSE SANYO DECIDED TO STOP BUYING SANRITSU'S PORTABLE STEREOS FOR SALE IN JAPAN TO COMPETE WITH CHEAPER STEREOS MADE ABROAD AT JAPANESEOWNED PLANTS SANYO SAYS IT WILL PROBABLY MAKE ITS OWN IN MALAYSIA OR SINGAPORE JAPANESE CONSUMERS USED TO PAY A PREMIUM FOR MADEINJAPAN SAYS HIROYUKI NAKAMURA SANRITSU'S MANAGING DIRECTOR BUT NOW JAPAN'S ECONOMIC SLUMP AND A GRADUAL APPEARANCE OF SOME CHEAPER IMPORTS ARE ENCOURAGING A NEW BARGAINHUNTING CULTURE NIKKEI TRENDY A MAGAZINE AIMED AT YOUNG CONSUMERS RECENTLY RAN A 40PAGE GUIDE ON HOW TO TRACK DOWN ELUSIVE IMPORT BARGAINS AMONG THE FINDS RALPH LAUREN JEANS NOW 9800 YEN DOWN 18 AND HEINZ KETCHUP 158 YEN DOWN 47 EVEN DETROIT IS GOING ALONG FOR THE RIDE FORD MOTOR CO CUT TAURUS PRICES IN JAPAN BY 5 LAST FALL THAT ALONG WITH FORD'S SIZABLE DEALERSHIP NETWORK IN JAPAN HELPED BOOST ITS JAPANESE SALES 59 IN THE FIRST SEVEN MONTHS OF 1993 TO 2992 CARS FORD SAYS IT WILL PROBABLY TRIM PRICES AGAIN THIS FALL AND EXPECTS TO SELL 10000 VEHICLES NEXT YEAR FORD'S EXPENSIVE COMMITMENT TO BUILDING A SALES OPERATION IN JAPAN IS PAYING OFF INDEED DIRECT INVESTMENT IS CONSIDERED ONE OF THE BEST WAYS TO EXPAND EXPORTS HOWEVER THE RISING YEN MAKES SETTING UP IN JAPAN A LOT MORE EXPENSIVEAND DAUNTINGFOR AMERICANS AT THESE YEN LEVELS DEUTSCHE BANK'S MR COURTIS SAYS COMPANIES ARE BEING TEMPTED TO CASH OUT OF JAPAN 9308200011 930820 INTERNATIONAL BROKEN HILL REPORTS IMPROVEMENT IN SALES OF STEEL IN AUSTRALIA SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA BROKEN HILL PROPRIETARY CO AUSTRALIA'S MAIN STEEL PRODUCER SAID DOMESTIC STEEL SALES ROSE 9 TO 337000 METRIC TONS IN JULY FROM A YEAREARLIER 310000 TONS AND IMPROVED 11 FROM JUNE'S 305000 TONS DOMESTIC STEEL SALES ARE CONSIDERED AN INDICATOR OF OVERALL ECONOMIC ACTIVITY A METRIC TON IS 220462 POUNDS THE 9 YEARONYEAR INCREASE FOR JULY IMPROVED ON JUNE'S 7 YEARONYEAR GAIN BUT FELL SHORT OF MAY'S 25 GROWTH BHP SAID JULY'S EXPORT SALES OF STEEL FELL 6 FROM THE PREVIOUS MONTH TO 201000 TONS FROM 214000 TONS BUT ROSE 18 FROM THE YEAREARLIER PERIOD'S 171000 TONS THE TRADITIONAL MARKETS FOR STEEL CONTINUE TO GROW STEADILY FROM THE VERY LOW BASE OF LAST YEAR THE COMPANY SAID HOWEVER THE RECOVERY IS FAR FROM UNIFORM BHP SAID HOUSING ACTIVITY WHICH DROVE STEEL DEMAND DURING THE RECESSION APPEARS TO HAVE FLATTENED HOWEVER THE COMPANY SAID NONRESIDENTIAL BUILDING WHICH HAS BEEN IN A DEEP SLUMP FOR MORE THAN TWO YEARS IS SHOWING SOME IMPROVEMENT BHP SAID THERE IS ALSO INCREASED DEMAND FROM THE AUTOMOTIVE INDUSTRY AND THE RURAL SECTOR COMMENTING ON OTHER PRODUCTION FIGURES FOR JULY BHP SAID OIL PRODUCTION FROM ITS MAIN FIELDS IN THE BASS STRAIT WAS 2 HIGHER THAN THE YEAREARLIER PERIOD'S AND THAT OUTPUT OF LIQUEFIED NATURAL GAS FROM THE NORTH WEST SHELF FELL 2 BHP'S SHARE OF OIL PRODUCTION FROM THE KUTUBU FIELD IN PAPUA NEW GUINEA WAS 367000 BARRELS FOR JULY WHICH MORE THAN DOUBLED THE YEAREARLIER PERIOD'S 164000 BARRELS AND IS AN INCREASE OF 23 FROM JUNE COPPER PRODUCTION FROM THE ESCONDIDA MINE IN CHILE FELL 16 IN JULY FROM THE YEAREARLIER PERIOD BHP SAID 9308200010 930820 HYUNDAI STRIKE ENDS AS WORKERS ACCEPT PAY ACCORD SPECIAL TO THE WALL STREET JOURNAL SEOUL STRIKING WORKERS AT HYUNDAI HEAVY INDUSTRIES CO ACCEPTED A TENTATIVE PAY AGREEMENT ENDING A SEVENWEEK STRIKE COMPANY OFFICIALS SAID OF THE 17350 WORKERS WHO VOTED 52 ENDORSED THE TENTATIVE AGREEMENT REACHED WEDNESDAY BY REPRESENTATIVES OF UNION AND MANAGEMENT ON WEDNESDAY THE UNION ACCEPTED THE COMPANY OFFER FOR A 474 WAGE INCREASE AND A 200 PRODUCTIVITYACHIEVEMENT BONUS MANAGEMENT PROMISED NOT TO SEEK ANY CIVIL AND CRIMINAL ACTIONS AGAINST WORKERS WHO TOOK PART IN THE PROLONGED STRIKE THE VOTE IN THE WORLD'S LARGEST SHIPYARD ENDED LABOR DISPUTES IN AFFILIATES OF CONGLOMERATE HYUNDAI GROUP NINE UNITS OF HYUNDAI INCLUDING HYUNDAI MOTOR CO ENTERED LABOR DISPUTES IN EARLY JUNE DEMANDING MORE WAGES AND A GREATER SAY IN MANAGEMENT THE PEACEFUL CONCLUSION OF THE HYUNDAI SHIPYARD DISPUTE CAME UNDER STRONG INDICATIONS BY THE GOVERNMENT THAT IT WOULD INVOKE EMERGENCY POWERS SOON TO END THE PROLONGED LABOR ACTION SEPARATELY HYUNDAI MOTOR SAID IT CONTRACTED WITH BELOST CO A HYUNDAI DEALERSHIP IN BELARUS TO SELL 10000 CARS OVER THE NEXT FIVE YEARS THIS IS THE FIRST SHIPMENT BY A SOUTH KOREAN AUTOMOBILE COMPANY TO THE SECOND LARGEST INDEPENDENT REPUBLIC OF THE FORMER SOVIET UNION A HYUNDAI OFFICIAL SAID THE FIRST DELIVERY WILL BE MADE IN OCTOBER WITH THE SHIPMENT OF 100 SUBCOMPACT SONATAS AND 70 FOURWHEELDRIVE GALLOPERS 9308200009 930820 LOAN COMMITMENTS BY BUILDING SOCIETIES IN UK FELL FOR JULY SPECIAL TO THE WALL STREET JOURNAL LONDON NET NEW LOAN COMMITMENTS BY UNITED KINGDOM BUILDING SOCIETIES FELL IN JULY FROM JUNE AND WERE DOWN 15 FROM A YEAR EARLIER THE BUILDING SOCIETIES ASSOCIATION SAID THAT NET NEW COMMITMENTS ON MORTGAGE LENDING OR FINANCE PROMISED BUT NOT YET ADVANCED FELL TO 294 BILLION 446 BILLION IN JULY FROM 318 BILLION IN JUNE AND WAS DOWN FROM 345 BILLION IN JULY 1992 MORTGAGE ADVANCES OR MONEY ACTUALLY RELEASED TO BORROWERS ROSE 43 IN JULY BUT WERE ALSO DOWN 15 FROM JULY 1992 ADVANCES WERE AT 317 BILLION IN JULY UP FROM 304 BILLION IN JUNE AND DOWN FROM 374 BILLION IN JULY 1992 THE ASSOCIATION SAID BUILDING SOCIETIES LAST MONTH HAD NET WITHDRAWALS OF 61 MILLION COMPARED WITH WITHDRAWALS OF 56 MILLION IN JUNE THE WITHDRAWALS IN JULY AND JUNE FOLLOWED SIX MONTHS OF NET RECEIPTS FLOWING INTO THE BUILDING SOCIETIES THAT TOTALED 270 BILLION THE JULY FIGURE COMPARES WITH NET WITHDRAWALS OF 325 MILLION IN JULY 1992 COMMENTING ON THE FIGURES ADRIAN COLES DIRECTORGENERAL OF THE ASSOCIATION SAID THAT GIVEN THE RECENT BT3 SHARE OFFER THE FINAL LEG OF BRITISH TELECOMMUNICATIONS PLC'S PRIVATIZATION THE FALL IN NEW ADVANCES IN JULY WAS EXPECTED ALSO SEASONAL FACTORS WERE AT PLAY AS CUSTOMERS TOOK OUT MONEY TO PAY FOR HOLIDAYS AND CARS ON NET LENDING MR COLES SAID THAT COMPARISONS WITH LAST YEAR ARE MISLEADING BECAUSE OF THE RUSH TO BEAT THE HOLIDAY ON STAMP DUTY TAX IN 1992 NEW COMMITMENTS HAVE REMAINED AROUND 3 BILLION FOR FIVE MONTHS HOWEVER SUGGESTING THAT THE CURRENT LEVELS OF LENDING ACTIVITY WILL BE BROADLY MAINTAINED OVER THE COMING MONTHS HE SAID 9308200008 930820 ECONOMY AIRLINE PANEL GIVES REPORT TO CLINTON BUT PRIVATIZATION PROPOSALS GIVE PAUSE BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON YESTERDAY FORMALLY RECEIVED THE REPORT OF A STUDY GROUP ON AIRLINES BUT THERE ARE STRONG DOUBTS WITHIN HIS ADMINISTRATION ABOUT THE MOST SIGNIFICANT PROPOSALS THE PRESIDENT DIDN'T ENDORSE THE COMMISSION'S PROPOSALS AND INSTEAD ASSIGNED TRANSPORTATION SECRETARY FEDERICO PENA AND COUNCIL OF ECONOMIC ADVISERS CHAIRWOMAN LAURA TYSON TO DRAFT A SEPARATE ADMINISTRATION PLAN SOME CLINTON ADMINISTRATION OFFICIALS ARE SKEPTICAL IN PARTICULAR ABOUT A PROPOSAL TO PARTIALLY PRIVATIZE THE AIRTRAFFICCONTROL SYSTEM AND ALLOW ITS ADMINISTRATORS TO USE SOME CORPORATE FINANCING TO BUY EQUIPMENT AND SOFTWARE COMMISSION MEMBERS ECHOING AIRLINES AND AIRTRAFFIC CONTROLLERS ARGUED THAT THE CHANGE IS NECESSARY BECAUSE AN UNWIELDY GOVERNMENT PROCUREMENT PROCESS HAS PRODUCED HARMFUL DELAYS IN THE FEDERAL AVIATION ADMINISTRATION'S 32 BILLION EFFORT TO MODERNIZE THE NATION'S AIRTRAFFICCONTROL SYSTEM AND VICE PRESIDENT AL GORE'S STAFF IS ENDORSING THE IDEA AS A GOOD EXAMPLE OF MR GORE'S REINVENTING GOVERNMENT THEME PROPONENTS SAY BUT OTHERS IN THE WHITE HOUSE INCLUDING THE OFFICE OF MANAGEMENT AND BUDGET HAVE QUESTIONED WHETHER PUTTING THE AIRTRAFFICCONTROL SYSTEM UNDER THE PARTIAL CONTROL OF AIRLINES WOULD SAVE THEM ENOUGH MONEY TO JUSTIFY THE CHANGE ADMINISTRATION OFFICIALS SAID WITHOUT STRONG ENDORSEMENT FROM PRESIDENT CLINTON IT'S UNLIKELY THAT CONGRESS WOULD EVEN TAKE UP THE QUESTION OF OVERHAULING THE FAA BECAUSE SIMILAR PROPOSALS HAVE DIED IN THE PAST EVEN LESS LIKELY TO FLY IS THE COMMISSION'S PROPOSAL TO ROLL BACK TICKET AND CARGO TAXES AND TO FREE MONEYLOSING AIRLINES FROM HAVING TO PAY AN ALTERNATIVE MINIMUM TAX PRESIDENT CLINTON HAS NO DESIRE TO TINKER WITH HIS HARDWON DEFICITREDUCTION PLAN AS INDICATED IN A STATEMENT PRAISING THE PANEL'S WORK YESTERDAY WE WILL WORK WITH CONGRESS TO RESPOND TO THE INDUSTRY'S PROBLEMS IN A MANNER CONSISTENT WITH OUR DEFICITREDUCTION AND ECONOMIC GOALS MR CLINTON SAID SEVERAL MEMBERS SAID YESTERDAY THE COMMISSION'S CALL FOR REGULATORY RELIEF WILL PROBABLY BE ENDORSED THE PANEL CALLED FOR THE FAA TO PUT AN ANNUAL CAP ON THE COSTS OF ITS REGULATIONS TO THE INDUSTRY AND FOR THE AGENCY TO LIMIT RANDOM DRUG AND ALCOHOL TESTING THAT AIRLINES HAVE TO PERFORM ON THEIR EMPLOYEES ON THE OTHER HAND THE COMMISSION IS ALSO CALLING FOR A NEW FINANCIAL ADVISORY COMMITTEE TO HELP THE TRANSPORTATION SECRETARY POLICE SICK AIRLINES MORE TIGHTLY THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY SET UP BY CONGRESS AND PRESIDENT CLINTON IN REACTION TO AIRLINEINDUSTRY LOSSES IS HEADED BY FORMER VIRGINIA GOV GERALD BALILES WHO IS CLOSE TO THE PRESIDENT MR BALILES WHO HAS ALREADY BEGUN DISCUSSIONS WITH THE WHITE HOUSE STAFF YESTERDAY SAID AIRLINES STILL NEED HELP DESPITE RECENT IMPROVEMENTS IN THEIR FINANCIAL RESULTS ECONOMIC RECOVERY BY ITSELF WILL NOT PROVIDE THE RELIEF THE INDUSTRY NEEDS RESTRUCTURING BY THE INDUSTRY ITSELF WILL NOT TAKE CARE OF THE PROBLEMS IN THE INDUSTRY HE SAID TO REINFORCE THAT POINT THE COMMISSION PRINTED THE 38PAGE REPORT ON GLOSSY PAPER WITH FULLCOLOR CHARTS ILLUSTRATING THE INDUSTRY'S WOES THE COMMISSION PRINTED 10000 COPIES THE REPORT'S 60 PROPOSALS INCLUDE TIGHTENING BANKRUPTCY PROCEDURES FOR AIRLINES ASKING THE PRESIDENT TO RELEASE OIL FROM THE STRATEGIC RESERVE WHEN JET FUEL PRICES RISE SHARPLY AND ALLOWING THE GOVERNMENT TO NEGOTIATE TRADE ACCORDS TO GIVE FOREIGN INVESTORS THE RIGHT TO HOLD UP TO A 49 VOTING STAKE IN A US AIRLINE IN EXCHANGE FOR FREER ACCESS TO FOREIGN MARKETS 9308200007 930820 MOVES BY PAGURIAN EDPER TO CONSOLIDATE BRONFMANS' EMPIRE TORONTO THE BRONFMAN CORPORATE EMPIRE TOOK ANOTHER STEP IN THE GRADUAL DISMANTLING OF THE GROUP'S LABYRINTHINE STRUCTURE EDPER INVESTMENTS LTD CLOSELY HELD BY THE FAMILY OF PETER BRONFMAN AND PAGURIAN CORP WHICH IS CONTROLLED BY EXECUTIVES WITHIN THE BRONFMAN EMPIRE PLAN TO ELIMINATE ONE OF THE KEY PRIVATE HOLDING COMPANIES THAT HAVE BEEN THE TARGET OF CRITICISM FROM ANALYSTS AND INVESTORS MANFRED WALT PAGURIAN'S PRESIDENT SAID THE MOVE IS A FURTHER STEP TOWARD CONSOLIDATING THE VARIOUS PUBLIC AND CLOSELY HELD HOLDING COMPANIES WITHIN THE BRONFMAN GROUP INTO A SINGLE PUBLICLY TRADED ENTITY THE PROCESS IS EXPECTED TO TAKE THREE TO FIVE YEARS TO COMPLETE THE AGREEMENT BETWEEN EDPER INVESTMENTS AND PAGURIAN ELIMINATES RECIPROCAL OBLIGATIONS TO FINANCE ADDITIONAL PURCHASES OF STOCK OF EDPER HOLDINGS INC CLEARING THE WAY FOR THE EVENTUAL MERGER OF THE UNIT WITH OTHER HOLDING COMPANIES IN THE GROUP EDPER INVESTMENTS OWNS JUST OVER 50 OF EDPER HOLDINGS WITH THE BALANCE HELD BY PAGURIAN AS PART OF THE AGREEMENT THE BRONFMAN FAMILY'S EDPER INVESTMENTS WILL RELINQUISH 372 MILLION CANADIAN DOLLARS US2814 MILLION OF JUNIOR PREFERRED SHARES IN EDPER HOLDINGS THE FAMILY ALSO WILL RECEIVE C14 MILLION IN CASH FROM EDPER HOLDINGS FOR AN EQUAL AMOUNT OF SENIOR PREFERRED SHARES IN EDPER ENTERPRISES LTD A SUBSIDIARY OF EDPER HOLDINGS ALAIN TUCHMAIER AN ANALYST AT MCLEAN MCCARTHY LTD IN TORONTO SAID THE BRONFMAN FAMILY APPEARS TO HAVE RECOGNIZED THAT ITS JUNIOR PREFERRED SHARES NO LONGER HAVE ANY VALUE BECAUSE OF THE FALLOUT FROM THE GROUP'S TROUBLED INVESTMENTS IN COMMERCIAL REAL ESTATE AND FINANCIAL SERVICES 9308200006 930820 COMMODITIES SOYBEAN PRICES CLIMB AS FORECASTING COMPANY IS RUMORED TO HAVE CUT ESTIMATE ON CROP SIZE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO RUMORS THAT A MAJOR CROPFORECASTING COMPANY HAD REDUCED ITS ESTIMATE OF THIS YEAR'S SOYBEAN CROP DROVE SOYBEAN FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY ROSE 650 CENTS TO 663 A BUSHEL MEANWHILE THE ACTIVELY TRADED DECEMBER CORN CONTRACT ROSE 125 CENTS TO 24325 A BUSHEL IN THE LATEST AUG 11 ESTIMATE OF THIS YEAR'S FLOODDAMAGED CROP THE US AGRICULTURE DEPARTMENT PROJECTED SOYBEAN PRODUCTION OF 1902 BILLION BUSHELS IN THAT REPORT THE USDA ESTIMATED THE US CORN CROP AT 7423 BILLION BUSHELS YESTERDAY SPARKS COS MEMPHIS TENN WHOSE ESTIMATES OF CROP SIZE ARE WIDELY FOLLOWED IN THE MARKET WAS RUMORED TO HAVE REDUCED ITS OWN ESTIMATE OF THE SOYBEAN CROP TO 1874 BILLION BUSHELS ANALYSTS SAID THIS WAS INTERPRETED BY SOME TRADERS AS ANOTHER INDICATION OF FROST ANXIETY NOW UNDERPINNING THE MARKET GRAIN PRICES HAVE TRICKLED LOWER SINCE LATE JULY WHEN DRENCHING RAINS ACROSS THE CORN BELT FINALLY TAPERED OFF YET THE MARKET NOW IS DRAWING STRENGTH FROM FEARS ABOUT THE POTENTIAL FOR DAMAGE TO THE CROP FROM EARLY FROST THE HEAVY RAINS OF SPRING AND EARLY SUMMER HAVE STUNTED DEVELOPMENT OF YOUNG SOYBEAN PLANTS ESPECIALLY IN THE WESTERN CORN BELT THE SLOW DEVELOPMENT OF PLANTS IN THESE RAINDELUGED AREAS COULD MAKE CROPS THERE PARTICULARLY VULNERABLE TO FROST THE BIG FEAR IS THE IMMATURITY OF THE CROP IN THE WESTERN CORN BELT AND THE POSSIBILITY OF A FROST OR AN EARLY FROST SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO SO THE MARKET IS RELUCTANT TO GO A LOT LOWER IN THE HEART OF THE CORN BELTSTATES SUCH AS IOWA ILLINOIS AND INDIANANORMAL DATES FOR THE FIRST FROST OF FALL ARE OCT 10 TO OCT 15 FORECASTS OF COLD ARCTIC AIR MOVING INTO THE MIDWEST BEFORE THEN COULD DRIVE FUTURES PRICES HIGHER PERHAPS BACK ABOVE THE 7ABUSHEL LEVEL ANALYSTS SAY CONTINUING TO LEND STRENGTH TO THE CBOT'S WHEAT FUTURES MARKET YESTERDAY WERE CONCERNS ABOUT AN OUTBREAK OF VOMITOXIN A MOLD THAT INFESTS WHEAT PLANTS PRODUCED BY A FUNGUS THAT FLOURISHES IN UNUSUALLY WET AND COOL WEATHER VOMITOXIN HAS BEEN FOUND IN WHEAT FIELDS IN THE NORTHERN CORN BELT AT THE CBOT YESTERDAY WHEAT FOR DECEMBER DELIVERY CLIMBED TWO CENTS TO 31775 A BUSHEL IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES WERE MIXED ON LITTLE NEWS THE SEPTEMBER CRUDE CONTRACT REMAINED UNDER PRESSURE BECAUSE OF TODAY'S EXPIRATION ON THE NEW YORK MERCANTILE EXCHANGE IT SETTLED ONE CENT A BARREL LOWER AT 1765 BUT OCTOBER CRUDE WAS UP TWO CENTS A BARREL TO 1815 MEANWHILE WIDESPREAD BEARISH SENTIMENT IN THE GASOLINE MARKET CONTINUED TO PUSH DOWN MOTOR FUEL PRICES THE FUTURES PRICE OF UNLEADED GASOLINE FOR SEPTEMBER DELIVERY DROPPED 058 CENT TO SETTLE AT 5352 CENTS A GALLON PRECIOUS METALS GOLD FUTURES PRICES RETREATED IN CHOPPY TRADING IN NEW YORK TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY FELL BACK 310 TO SETTLE AT 37440 AN OUNCE GOLD'S VALUE AS AN INFLATION HEDGE IS LOSING ITS LUSTER IN THE CURRENT NONINFLATIONARY ENVIRONMENT ANALYSTS SAID INFLATION POSES NO THREAT TO THE ECONOMY OR TO STOCK PRICES SAID BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER IN NEW YORK AFTER THE BIG CRACK IN THE MARKET EARLIER THIS MONTH GOLD HAS NEVER REALLY REGAINED ITS POISE HE ADDED GOLD PRODUCERS HAVE BEEN SELLING BULLION FORWARD AT PRICES OF 376 AN OUNCE AND ABOVE MR SAVAIKO SAID BECAUSE OF A LACK OF CONFIDENCE IN FURTHER PRICE APPRECIATION SILVER PRICES ALSO ENDED WEAKER ON THE COMEX SILVER FOR DECEMBER DELIVERY SHED 52 CENTS TO 4703 AN OUNCE 9308200005 930820 BUSINESS BRIEF HORMEL FOODS CORP THIRDQUARTER PROFIT ROSE TO HIGH ON 1 SALES INCREASE HORMEL FOODS CORP SAID FISCAL THIRDQUARTER EARNINGS ROSE 19 TO A RECORD 191 MILLION OR 25 CENTS A SHARE FROM 161 MILLION OR 21 CENTS A SHARE A YEAR EARLIER SALES ROSE ALMOST 1 TO 6778 MILLION FROM 6712 MILLION THE AUSTIN MINN PROCESSOR OF MEAT AND FOOD PRODUCTS SAID THE RECORD PROFIT WAS DUE TO OUTSTANDING PERFORMANCES BY ITS KEY MARKETING GROUPS HORMEL SAID ITS PREPARED FOODS MEAT PRODUCTS AND FOODSERVICE GROUP ENDED THE QUARTER WITH SUBSTANTIALLY IMPROVED RESULTS IN THE FIRST NINE MONTHS PROFIT ROSE 13 TO 60 MILLION OR 78 CENTS A SHARE FROM 532 MILLION OR 69 CENTS A SHARE SALES ROSE 4 TO 204 BILLION FROM 197 BILLION 9308200004 930820 LAW LEGAL BEAT LAWYERS BOOST COURTROOM USE OF TECHNOLOGY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DURING CLOSING ARGUMENTS IN THE RECENT PREDATORY PRICING CASE AGAINST AMR CORP'S AMERICAN AIRLINES ATTORNEY FINIS COWAN TRIED TO CONVINCE JURORS TO TRUST THE COMPANY'S EMPLOYEES WHO TESTIFIED AT TRIAL AND JUST TO MAKE SURE JURORS REMEMBERED WHO HE WAS TALKING ABOUT HE POPPED PICTURES OF EACH WITNESS ON A 67INCH TELEVISION SCREEN THE FIVEWEEK ANTITRUST CASE FILED BY CONTINENTAL AIRLINES AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES UNIT AGAINST AMERICAN DIDN'T PRODUCE A STARTLING VERDICTJURORS TOOK LESS THAN THREE HOURS TO DECIDE THAT AMERICAN HAD NOT UNFAIRLY SLASHED ITS PRICES BUT THE TRIAL DID TURN INTO AN IMPRESSIVE SHOW OF HOW TECHNOLOGY CAN BE USED IN THE COURTROOM LAWYERS HAVE BEEN MAKING TENTATIVE STABS AT USING COMPUTERS AND VIDEO MONITORS IN TRIALS FOR SEVERAL YEARS COMPUTERIZED GRAPHICS WERE USED IN THE TRIAL OF A FALSE ADVERTISING DISPUTE BETWEEN RALSTON PURINA AND ALPO PETFOODS INC IN 1989 AND THE PUBLIC GOT A GLIMPSE OF WHAT TECHNOLOGY CAN MEAN IN A CRIMINAL TRIAL WHEN THE DEFENSE TEAM IN THE RODNEY KING BEATING CASE BROKE THE NOWFAMOUS VIDEO INTO FRAMEBYFRAME SNIPPETS LAWYERS HAVE ALSO USED COMPUTERS TO RECREATE PLANE CRASHES HIGHWAY ACCIDENTS AND EVEN MURDERS AT THE ANTITRUST TRIAL LAST WEEK AMERICAN USED TECHNOLOGY FOR A WIDE VARIETY OF TASKS THE COMPANY'S LAWYERS HAULED A 20000 BARCO BIGSCREEN TELEVISION INTO THE 1930SERA VINTAGE COURTROOM IN GALVESTON TEXAS AND PLUGGED IT INTO A COMPUTER TERMINAL ATTORNEYS THUS WERE ABLE TO DISPLAY FOR THE JURY PORTIONS OF DOCUMENTS VIDEOTAPED DEPOSITIONS AND CHARTS AND GRAPHS WITH THE FLICK OF A LIGHT WAND A PENSIZED INSTRUMENT THAT READ BAR CODES ASSIGNED TO EACH OF THE THOUSANDS OF EXHIBITS INTRODUCED DURING THE TRIAL THE TAB FOR THIS COURTROOM WEAPONRY RAN TO ROUGHLY 50000 ROBERT COOPER ANOTHER OF AMERICAN'S LAWYERS SAID HE HAD NO WORRIES THAT JURORS WOULD LOOK ASKANCE AT THE COMPANY'S DISPLAY OF EXPENSIVE FIREPOWER MY OWN VIEW IS THAT JURORS EXPECT YOU TO DO THIS HE SAID THIS IS LITERALLY THE SAME AS THE NEWS PEOPLE WATCH EVERY NIGHT A HANDFUL OF BIG FIRMS HAVE MOVED TO CAPITALIZE ON THE GROWING DEMAND FOR SUCH LEGAL TECHNOLOGY THE BIGGEST OF WHICH ARE LITIGATION SCIENCES OF CULVER CITY CALIF AND DECISIONQUEST OF LOS ANGELES ABOUT 20 OR SO SMALLER FIRMS PROVIDE SIMILAR SERVICES OLDER ATTORNEYS FOR THE MOST PART DID NOT GROW UP WITH TELEVISION AND THEY TRIED TRIALS WHEN THEY WERE YOUNGER WITHOUT MUCH VISUAL SUPPORT MATERIAL SO THEY HAVE BEEN MORE RELUCTANT TO GET INTO THIS SAYS ROBERT SELTZER WHO IS THE EXECUTIVE DIRECTOR OF LITIGATION SCIENCES' LEGAL GRAPHICS DIVISION THE YOUNGER ONES WHO ARE MORE FAMILIAR WITH THE TECHNOLOGY ARE THE MOST RECEPTIVE BUT THE WHIZBANG DRAMA THAT COMPUTER EQUIPMENT BRINGS INTO A COURTROOM IS ONLY A PART OF WHAT THE TECHNOLOGY CAN DO ITS REAL STRENGTH IS IN INFORMATION MANAGEMENT USING COMPUTER TECHNOLOGY TO GET A HANDLE ON A COMPLICATED CASE WITH THOUSANDS OF DOCUMENTS THROUGH CROSSREFERENCING AND KEYWORD SEARCHES IT'S A FAR CRY FROM THE DAYS WHEN LAWYERS RENTED WAREHOUSES TO STORE LITIGATION MATERIAL AND SPENT HOURS ROOTING THROUGH BOXES TO FIND THE DOCUMENT THEY WERE LOOKING FOR TODAY SAYS MRSELTZER YOU CAN PUT UP TO 20000 DOCUMENTS ON A CDROM WHILE NOT CHEAP THE COST OF SUCH TECHNOLOGY CAN SAVE CLIENTS MONEY IN ATTORNEY TIME SAYS MOLLY GEORGE MARKETING DIRECTOR OF QUORUM LITIGATION SERVICES INC IN MINNEAPOLIS AS MORE INHOUSE COUNSEL TRY TO CUT COSTS HER FIRM IS BENEFITING BECAUSE LAW FIRMS AND THEIR CLIENTS ARE NOW CONTRACTING OUT A LOT OF THE WORK THEY ONCE DID THEMSELVES SHE ADDS NOT ALL LAWYERS ARE SO QUICK TO TURN TO COMPUTERS IN THE COURTROOM HOWEVER CONTINENTAL AND NORTHWEST FOR EXAMPLE RELIED ON TECHNOLOGY ONLY TO PLAY VIDEOTAPED DEPOSITIONS FOR JURORS ONE OF THE PLAINTIFFS' ATTORNEYS SAYS THE TWO AIRLINES COULDN'T AS EASILY MAKE THE POINT THAT THEY WERE FINANCIALLY HARMED BY AMERICAN'S ALLEGEDLY IMPROPER FARECUTTING IF THEY WERE HAULING OUT EXPENSIVE TECHNOLOGY BUT IT WASN'T JUST IMAGE THAT KEPT THE PLAINTIFFS FROM USING THE BIGSCREEN TV CONTINENTAL LAWYER MARY BOIES SAID IT WAS FAR EASIER TO SHOW DOCUMENTS BY HAVING TRANSPARENCIES MADE AND PUTTING THEM ON THE OVERHEAD PROJECTOR EVEN MR COOPER ONE OF AMERICAN'S LAWYERS ACKNOWLEDGES THE TECHNOLOGY'S LIMITATIONS I HAVE NOT YET BEEN SATISFIED WITH THE RESOLUTION FOR DOCUMENTS HE SAID THAT'S LIKELY TO CHANGE SAYS LITIGATION SERVICES' MR SELTZER AS TECHNOLOGICAL ADVANCES IMPROVE THE PICTURES COMPUTERS CAN GENERATE HE SAYS THAT WITHIN A YEAR ATTORNEYS WILL BE ABLE TO USE COMPUTERS TO ZOOM IN ON PART OF A DOCUMENT AND EVEN HIGHLIGHT IT IN DIFFERENT COLORS AND COURTROOM TECHNOLOGY IS EXPECTED TO BECOME CHEAPER TO USE AND MORE READILY AVAILABLE ALREADY SOME NEW COURTROOMS ARE BEING PREWIRED TO ACCOMMODATE TELEVISION MONITORS AND COMPUTERS I THINK EVENTUALLY WE'LL FIND THAT COURTROOMS WILL BECOME EQUIPPED WITH COMPUTERS AND TELEVISION MONITORS STATIONED IN THE COURTROOM MR SELTZER SAYS ALL AN ATTORNEY HAS TO DO IS COME INTO THE COURTROOM READY FOR TRIAL WITH A CDROM THE SUPREME COURT IS FUMING AGAIN OVER PUBLICITY OF ITS ACTIVITIES BUT THIS TIME THE ACTIVITIES WERE PUBLIC IN THE FIRST PLACE THE LATEST SPAT CONCERNS THE MARKETING OF AUDIO TAPES OF FAMOUS ORAL ARGUMENTS AT THE HIGH COURT INCLUDING THOSE IN THE 1973 ROE VS WADE ABORTIONRIGHTS CASE AND THE 1974 CASE OVER THE RELEASE OF THE WATERGATE TAPES IN A FIRSTOFITS KIND EFFORT A UNIVERSITY OF CALIFORNIA POLITICAL SCIENTIST PETER IRONS IS PLANNING TO SELL EDITED TAPES AND TRANSCRIPTS OF THESE AND OTHER LANDMARK DISPUTES ORAL ARGUMENTS ARE OPEN TO THE PUBLIC STILL THE HIGH COURT HAS THREATENED PROF IRONS WITH UNSPECIFIED LEGAL ACTION IF HE PROCEEDS IN A SEPARATE DISPUTE THIS YEAR EIGHT OF THE NINE JUSTICES CONDEMNED THE LIBRARY OF CONGRESS FOR RELEASING THE PERSONAL PAPERS OF THE LATE JUSTICE THURGOOD MARSHALL ALTHOUGH JUSTICE MARSHALL HAD AGREED TO SUCH A RELEASE UPON HIS DEATH MOST OF HIS FORMER COLLEAGUES ACCUSED THE LIBRARY OF VIOLATING THE COURT'S MUCHPRIZED CONFIDENTIALITY THE IRONS AFFAIR HAS ITS ORIGINS IN THE COURT'S OWN PRACTICE OF TAPING ITS ORAL ARGUMENTS THE TAPES ARE AVAILABLE TO RESEARCHERS AT THE NATIONAL ARCHIVES TO COPY THEM RESEARCHERS MUST SIGN AN AGREEMENT SAYING THEY WILL BE USED ONLY FOR RESEARCH AND TEACHING PURPOSES AND THAT THE RESEARCHERS WON'T REPRODUCE THEM PROF IRONS SIGNED THE AGREEMENT BUT WENT AHEAD WITH HIS PROJECT TO REPRODUCE AND MARKET TAPES OF FAMOUS CASES UNDER THE TITLE MAY IT PLEASE THE COURT THE TRADITIONAL OPENING FOR ORAL ARGUMENTS HE SAID IN AN INTERVIEW THAT THE AGREEMENT WAS A LEGALLY UNENFORCEABLE RESTRAINT ON EXPRESSION AND THEREFORE DIDN'T HAVE TO BE OBEYED THE PROJECT CAN ONLY HELP PEOPLE UNDERSTAND HOW THE COURT OPERATES HE ADDED WHAT IS THE COURT AFRAID OF THE SUPREME COURT OR AT LEAST CHIEF JUSTICE WILLIAM REHNQUIST HAS SAID THAT THE AGREEMENT WAS VALID IN LIGHT OF THIS CLEAR VIOLATION OF PROF IRONS'S CONTRACTUAL COMMITMENTS THE COURT'S PUBLIC INFORMATION OFFICE SAID IN A PRESS RELEASE THIS MONTH THE COURT IS CONSIDERING WHAT LEGAL REMEDIES MAY BE APPROPRIATE TONI HOUSE THE COURT'S SPOKESWOMAN WOULDN'T ELABORATE ONE STEP THAT COULD BE TAKEN AGAINST PROF IRONS IS A BREACHOFCONTRACT SUIT WHICH THE ATTORNEY GENERAL COULD FILE ON BEHALF OF THE FEDERAL GOVERNMENT THE COURT IS NOW IN RECESS AND THE JUSTICES AREN'T EXPECTED TO GATHER AGAIN IN WASHINGTON UNTIL LATE SEPTEMBER WHEN THEY BEGIN PREPARATIONS FOR THE NEW TERM BEGINNING OCT 4 WHO'S NEWS ANDREW B ROTH HAS JOINED THE 70ATTORNEY HEALTH LAW DEPARTMENT OF MCDERMOTT WILL & EMERY AS A PARTNER MR ROTH WHO REPRESENTS HOSPITALS AND HANDLES ISSUES INVOLVING RESIDENCY TRAINING PROGRAMS WILL WORK IN THE CHICAGO LAW FIRM'S NEW YORK OFFICE HE PREVIOUSLY WAS A PARTNER IN THE GARDEN CITY NY OFFICE OF NIXON HARGRAVE DEVANS & DOYLE A ROCHESTER NY LAW FIRM PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9308200003 930820 INTERNATIONAL EUROPE'S BCCI PROBES AWAIT COURT TESTS TRIALS ARE READIED AS US EFFORT APPEARS FINISHED BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL EUROPEAN INVESTIGATORS LOOKING INTO THE SCANDAL SURROUNDING BANK OF CREDIT & COMMERCE INTERNATIONAL STILL HAVE MOST OF THEIR COURT WORK AHEAD OF THEM EVEN AS THE MAIN US GOVERNMENT PROBE OF THE ROGUE BANK APPEARS TO HAVE LARGELY RUN ITS COURSE BRITAIN'S SERIOUS FRAUD OFFICE IS SET TO BRING ITS FIRST BCCIRELATED CASE TO COURT AT THE BEGINNING OF SEPTEMBER WHEN THE LONDON TRIAL OF BUSINESSMAN NAZMU VIRANI GETS UNDER WAY MR VIRANI FORMER CHAIRMAN OF BRITISH PROPERTY AND LEISURE GROUP CONTROL SECURITIES IS CHARGED WITH SIGNING FALSE AUDIT CONFIRMATIONS THAT ALLEGEDLY ALLOWED BCCI TO FALSIFY LOANS BCCI USED FALSE LOANS TO PAD ITS BALANCE SHEET AS IT PILLAGED ITS DEPOSITORS' FUNDS MR VIRANI CURRENTLY ON BAIL WAS FOR YEARS A BIG DONOR TO BRITAIN'S MAJOR POLITICAL PARTIES CONTROL SECURITIES HAD BEEN ONE OF BCCI'S BIGGEST BORROWERS AND DEPOSITORS BEFORE THE BANK WAS CLOSED THE SLOWER PROGRESS IN INVESTIGATING THE BCCI AFFAIR IN EUROPE IS ALL THE MORE REMARKABLE BECAUSE BCCI'S PARENT COMPANY BCCI HOLDINGS LUXEMBOURG SA WAS BASED IN THE HEART OF THE CONTINENT IN LUXEMBOURG WHILE THE BANK'S HEAD OFFICE WAS IN LONDON EUROPE'S MAJOR INTERNATIONAL BANKING CENTER LIQUIDATORS FOR BCCI ESTIMATE THAT 12 BILLION OF DEPOSITORS' MONEY IS MISSING MUCH OF IT IN EUROPE IT'S NOW TWO YEARS AND ONE MONTH AFTER THE CLOSURE OF BCCI AND NOBODY HAS BEEN CONVICTED OF THIS FRAUD SAID A BRITISH MEMBER OF PARLIAMENT KEITH VAZ REFERRING TO THE COORDINATED JULY 1991 CLOSURE OF THE BANK BY REGULATORS IN A NUMBER OF COUNTRIES MR VAZ SAID IT WAS INCREDIBLE THAT THERE HAVE BEEN NO CONVICTIONS IN THE UK GIVEN THE SCALE OF THIS MASSIVE CRIME HE HAS LED UK LEGISLATIVE ATTEMPTS TO PUT THE SPOTLIGHT ON THE BCCI ISSUE MANY OF THE 40000 BRITISH DEPOSITORS WHO LOST MONEY IN BCCI LIVE IN THE LEICESTER CONSTITUENCY MR VAZ REPRESENTS IN ADDITION TO ITS PENDING ACTION AGAINST MR VIRANI BRITAIN'S SERIOUS FRAUD OFFICE HAS ALSO BROUGHT CHARGES AGAINST TWO OFFICIALS WHO WORKED WITH BCCI IMRAN IMAM A CLERK AT THE BANK'S HEADQUARTERS WHO BRITISH AUTHORITIES ALLEGE CONSPIRED TO COMMIT FRAUD BY FALSIFYING RECORDS AND CONCEALING 105 MILLION OF LOAN GUARANTEES AND MOHAMMED BAQI A FORMER MANAGING DIRECTOR OF ATTOCK OIL A PAKISTANI ENERGY COMPANY CONTROLLED BY BCCI MR BAQI WHOSE CASE IS SET TO GO TO TRIAL IN LONDON NEXT JANUARY IS CHARGED WITH SIGNING ALLEGEDLY FALSE LOAN DOCUMENTATION THE BRITISH AUTHORITIES ALSO RECENTLY TOOK INTO CUSTODY SYED ZIAUDDIN ALI AKBAR WHO HEADED BCCI'S TREASURY DIVISION FOR FOUR YEARS UNTIL 1986 WHEN HE LEFT TO RUN CAPCOM FINANCIAL SERVICES LTD A COMMODITY INVESTMENT FIRM LINKED TO BCCI BUT THE MAIN PROBLEM HAMPERING EUROPEAN AND AMERICAN EFFORTS TO PURSUE THE ALLEGED PERPETRATORS OF THE BCCI SCANDAL IS THAT THEY ARE LARGELY BEYOND THE REACH OF PROSECUTORS MOST ARE EITHER IN PAKISTAN OR IN THE SHEIKHDOM OF ABU DHABI BCCI'S FOUNDER AGHA HASAN ABEDI FOR EXAMPLE IS IN KARACHI PAKISTAN BOTH THE US AND UK GOVERNMENTS ALSO HAVE BEEN UNWILLING TO PUT SUFFICIENT PRESSURE ON ABU DHABI TO GET IT TO PROVIDE ACCESS TO OTHER CRUCIAL WITNESSES SUCH AS FORMER BCCI CHIEF EXECUTIVE SWALEH NAQVI MR NAQVI HAS BEEN UNDER HOUSE ARREST IN ABU DHABI SINCE THE LATE SUMMER OF 1991 THE MAIN US PROBE OF THE BCCI AFFAIR CONDUCTED IN NEW YORK CITY BY MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU SUFFERED A SIGNIFICANT SETBACK LAST WEEK WHEN ITS CASE AGAINST WASHINGTON DC LAWYER ROBERT ALTMAN COLLAPSED MR ALTMAN WAS ACQUITTED OF NEW YORK STATE CRIMINAL CHARGES THAT HE HELPED BCCI SECRETLY GAIN CONTROL OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON AND THAT HE MADE FALSE FILINGS WITH REGULATORS ON BEHALF OF BCCI MR ALTMAN HAD FOR YEARS SERVED AS A LAWYER FOR BCCI AND WAS PRESIDENT OF A FIRST AMERICAN UNIT MR MORGENTHAU'S OFFICE HAS BEEN INVESTIGATING BCCI SINCE 1989 AND MANY IN EUROPE INCLUDING MR VAZ CREDIT THIS AMERICAN PROBE IN PARTICULAR WITH PUSHING EUROPEAN INSTITUTIONS INTO THE ACTIONS THAT THEY HAVE TAKEN I DON'T THINK IT WOULD HAVE BEEN CLOSED BUT FOR THE AMERICANS MR VAZ SAID OF THE BANK OF ENGLAND'S JULY 5 1991 SHUTDOWN OF THE BANK THE NEW YORK INVESTIGATION IN TANDEM WITH ANOTHER STARTED BY THE US JUSTICE DEPARTMENT IN WASHINGTON REACHED A JANUARY 1992 SETTLEMENT WITH BCCI'S LIQUIDATORS WHO AGREED TO PAY 550 MILLION OF FINES FOR THE BANK'S TRANSGRESSIONS IN THE US IN ADDITION SHEIK KAMAL ADHAM A MAJOR BCCI SHAREHOLDER IN JULY 1992 PLEADED GUILTY TO A US CHARGE OF BANK FRAUD AND AGREED TO PAY 105 MILLION IN FINES IN EUROPE THOUGH THE COURT HEARINGS ARE STILL TO COME FOR THE MOMENT THE MAIN FOCUS IS A LUXEMBOURG COURT HEARING CURRENTLY ADJOURNED UNTIL THE END OF OCTOBER AT THAT TIME A PANEL OF THREE LOCAL JUDGES IS EXPECTED TO RULE ON A PROPOSED LIQUIDATION PLAN FOR BCCI THE PLAN PUT TOGETHER BY BRIAN SMOUHA OF TOUCHE ROSS & CO BCCI'S COURTAPPOINTED LIQUIDATOR WOULD GIVE DEPOSITORS LIMITED COMPENSATION THAT MIGHT TOTAL AS MUCH AS 30 CENTS FOR EACH 1 OF LOST DEPOSITS THE GOVERNMENT OF ABU DHABI THE FORMER MAJORITY OWNER OF BCCI IS CHIPPING IN MONEY IN RETURN FOR LEGAL IMMUNITY AND A POTENTIAL CLAIM ON MONEY RECOVERED SUBMISSIONS TO THE COURT HAVE CRITICIZED THE PLAN ESPECIALLY BECAUSE IT CASTS THE GOVERNMENT OF SHEIK ZAYED OF ABU DHABI IN THE ROLE OF COLIQUIDATOR THE LOCAL BANK REGULATOR THE INSTITUT MONETAIRE LUXEMBOURGEOIS FILED A BRIEF QUESTIONING THE CONDUCT OF A SENIOR MEMBER OF SHEIK ZAYED'S COURT RAISING THE ISSUE OF HIS KNOWLEDGE OF ALLEGED FRAUDS AT BCCI A GROUP OF INVESTORS WITH SUBSTANTIAL DEPOSITS AT BCCI ALSO HAS FILED WITH THE LUXEMBOURG COURT IN AN EFFORT TO BLOCK THE SETTLEMENT ALTOGETHER THERE ARE OTHER PENDING LEGAL ACTIONS IN EUROPE THE BCCI LIQUIDATORS TOUCHE ROSS HAVE FILED SUIT AGAINST THE BANK OF ENGLAND ALLEGING THAT IT WAS NEGLIGENT IN ITS SUPERVISION OF BCCI THE BANK OF ENGLAND DENIES THIS AND HAS SAID IT WILL FIGHT THE CASE IN COURT THE LIQUIDATORS ALSO HAVE FILED SUIT IN LONDON AGAINST PRICE WATERHOUSE THE ACCOUNTING FIRM THAT AUDITED BCCI ALLEGING NEGLIGENCE PRICE WATERHOUSE HAS ALSO DENIED THESE ALLEGATIONS AND HAS INDICATED IT WILL CONTEST THEM THE HIGH COURT IN BRITAIN IN JULY TURNED DOWN AN ATTEMPT BY PRICE WATERHOUSE TO PUT OFF A JUDICIAL REVIEW OF ITS AUDITING OF BCCI PRICE WATERHOUSE HAS SAID IT IS CONSIDERING APPEALING THAT DECISION PRICE WATERHOUSE STRESSES ITS OWN ROLE IN UNCOVERING FRAUD AT BCCI AND ALSO CONTENDS IT IS UNFAIR THAT SUCH AN INQUIRY SHOULD BE HELD WHILE IT STILL FACES LEGAL ACTION OVER BCCI 9308200002 930820 THURSDAY'S MARKETS YIELD OF 620 IS ANOTHER LOW FOR LONG BOND BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE AWESOME RALLY IN LONGTERM BOND PRICES ROLLED ON SENDING INTEREST RATES PLUNGING TO ANOTHER 16YEAR LOW STOCK PRICES WERE MIXED BUT BOTH THE DOW JONES INDUSTRIAL AVERAGE AND STANDARD & POOR'S 500STOCK INDEX EDGED UP TO NEW RECORDS THE INDUSTRIAL AVERAGE GAINED 727 POINTS TO 361213 ITS THIRDCONSECUTIVE RECORD STANDARD & POOR'S 500STOCK INDEX INCHED UP 039 TO 45643 JUST BEATING ITS PREVIOUS HIGH OF 45633 THE NASDAQ COMPOSITE INDEX FELL 435 TO 73048 LONGTERM BOND PRICES RESPONDED STRONGLY TO FURTHER EVIDENCE OF A SLUGGISH ECONOMY THE COMMERCE DEPARTMENT REPORTED THAT THE MERCHANDISE TRADE DEFICIT WIDENED IN JUNE FAR MORE THAN EXPECTED TO THE LARGEST LEVEL IN MORE THAN FIVE YEARS PRICES OF NOTES AND BONDS ALSO WERE STRONGER BUT THE TREASURY'S BENCHMARK 30YEAR ISSUE CONTINUES TO PERFORM IN A REALM ALL ITS OWN ANALYSTS POINTED TO VARIOUS TECHNICAL REASONS FOR THE RALLY NOT THE LEAST OF WHICH IS THE TREASURY'S PLAN TO MOVE TO SEMIANNUAL AUCTIONS OF 30YEAR BONDS FROM QUARTERLY SALES STOCK PRICES MEANDERED MOST OF THE DAY AFTER FEVERISH TRADING WEDNESDAY DROVE SOME MAJOR INDEXES TO RECORDS CONSUMER STOCKS WERE AGAIN AMONG THE STRONGEST PERFORMERS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 177 TO 11100 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2899 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 983 ISSUES ROSE AND 979 FELL BOND PRICES SOARED THE TREASURY'S 30YEAR ISSUE GAINED NEARLY 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT TO YIELD 620 9308200001 930820 CARVEL FOUNDATION IS NAMED IN LAWSUIT BY NEW YORK STATE NEW YORK NEW YORK STATE HAS CHARGED THE THOMAS AND AGNES CARVEL FOUNDATION WITH THE ILLEGAL TRANSFER OF STOCK AND IMPROPER USE OF FOUNDATION FUNDS THE CIVIL SUIT FILED YESTERDAY IN A NEW YORK STATE COURT CHARGES MILDRED ARCADIPANE CARVEL FOUNDATION VICE PRESIDENT AND ROBERT DAVIS PRESIDENT WITH TRANSFERRING 115200 SHARES OF CARVEL CORP STOCK FROM THE FOUNDATION TO MS ARCADIPANE AND OTHER CARVEL EMPLOYEES IN ANTICIPATION OF A TAKEOVER BY ANOTHER COMPANY THE GROUP REALIZED 5 MILLION IN PROFITS LESS THAN A YEAR LATER THE STATE SAID WHEN CARVEL AN ICE CREAM COMPANY WAS ACQUIRED FOR 90 A SHARE MORE THAN 500000 IN FOUNDATION ASSETS ALSO ALLEGEDLY WAS USED FOR PERSONAL GAIN SUCH AS TUITION PAYMENTS FOR PRIVATE SCHOOL AND LEGAL FEES INCURRED IN THE PROCESS OF THE STATE'S INVESTIGATION THE STATE SAID ADDING THAT THE BEHAVIOR COST THE FOUNDATION AT LEAST 1 MILLION THE SUIT SEEKS TO RECOVER ALL FUNDS THAT HAVE BEEN OR WILL BE LOST AS A RESULT OF THE TRANSACTIONS A FOUNDATION SPOKESMAN DENIED ANY WRONGDOING SAYING THE TRANSACTIONS TOOK PLACE UNDER THE DIRECTION OF FOUNDATION FOUNDER THOMAS CARVEL PRIOR TO HIS DEATH IN 1990 THE STOCK TRANSFERRALS WERE DESIGNED TO COMPLY WITH TAXLAW REQUIREMENTS HE ADDED SCOTT MOLLEN AN ATTORNEY REPRESENTING MS ARCADIPANE SAID THE ATTORNEY GENERAL'S CHARITIES BUREAU WHICH INVESTIGATED THE CASE WAS SPURRED BY DISGRUNTLED CARVEL FAMILY MEMBERS TO ESTABLISH THE SUIT AND FORCE RESIGNATIONS AND CHANGES WITHIN THE POWER STRUCTURE OF THE FOUNDATION'S BOARD THE FOUNDATION WHICH HAS ASSETS VALUED AT 17 MILLION GRANTED 822000 FOR MEDICAL RELIGIOUS AND CULTURAL PURPOSES IN 1992 ACCORDING TO A REPORT FILED WITH THE ATTORNEY GENERAL'S OFFICE 9308200154 930726 DOUBLETHINK AT THE UNIVERSITY OF PENNSYLVANIA FOLLOWING ARE EXCERPTS FROM THE REPORT OF A PANEL OF UNIVERSITY OF PENNSYLVANIA ADMINISTRATORS APPOINTED TO STUDY THE THEFT OF ONE ENTIRE PRESS RUN OF THE STUDENT NEWSPAPER THE PAPERS WERE SEIZED ALL OVER CAMPUS BY BLACK ACTIVIST STUDENTS OPPOSED TO THE DAILY PENNSYLVANIAN'S EDITORIAL CONTENT THE REPORT WHICH CRITICIZES SECURITY GUARDS ABSOLVES THE STUDENTS OF ANY WRONGDOING EXCEPT FAILURE TO SHOW ID CARDS THE PANEL ANALYZED WHAT SUPPOSEDLY TRANSPIRED AT EACH OF THE CAMPUS SITES INVOLVED A RELATED EDITORIAL APPEARS TODAY SEE RELATED EDITORIAL REVIEW & OUTLOOK EDITORIAL PENN THE REPORT WSJ JULY 26 1993 THE PANEL FOUND THAT ONE OFFICER BEHAVED IN A DISCOURTEOUS MANNER TOWARD THE STUDENTS BY ORDERING THEM TO LEAVE BEFORE DETERMINING WHO THEY WERE OR GIVING THEM AN OPPORTUNITY TO EXPLAIN THEIR PRESENCE THE PANEL FOUND THAT HIS ACTIONS VIOLATED SECTION 8402 OF THE UPPD UNIVERSITY OF PENNSYLVANIA POLICE DEPARTMENT POLICIES AND PROCEDURES MANUAL AND SHOULD BE REVIEWED BY HIS SUPERVISOR FOR POSSIBLE DISCIPLINARY ACTION THE PANEL FOUND THAT THE MEDICAL SCHOOL SECURITY GUARD BEHAVED APPROPRIATELY BY CONTACTING THE UPPD THE PANEL RECOMMENDED THAT ALL SECURITY PERSONNEL RECEIVE TRAINING ON WORKING AND INTERACTING WITH PEOPLE FROM DIVERSE BACKGROUNDS THIS TRAINING SHOULD INCLUDE INFORMATION ABOUT THE DIVERSITY OF THE PENN COMMUNITY AND THE EXPECTATION THAT ALL MEMBERS OF THE COMMUNITY SHOULD BE TREATED WITH CIVILITY AND RESPECT REGARDLESS OF RACE COLOR SEX SEXUAL ORIENTATION RELIGION NATIONAL OR ETHIC SIC ORIGIN AGE DISABILITY OR STATUS AS A DISABLED OR VIETNAM ERA VETERAN THE PANEL FOUND THAT ONE OFFICER BEHAVED IN AN UNPROFESSIONAL MANNER IN VIOLATION OF SECTION 8402 OF THE UPPD POLICIES AND PROCEDURES MANUAL BY CURSING AT THE STUDENT AND USED EXCESSIVE FORCE BY STRIKING THE STUDENT WITH HIS BATON THE PANEL ALSO FOUND THAT THE OFFICER FAILED TO CONDUCT A PROPER AND THOROUGH INVESTIGATION BECAUSE HE NEGLECTED TO INTERVIEW THE SECURITY PERSONNEL WHO WERE IN PURSUIT THE PANEL FOUND THAT THE RESPONDING OFFICER VIOLATED SECTION 5220 OF THE UPPD POLICIES AND PROCEDURES MANUAL BY NOT REQUESTING THAT A SUPERVISOR BE DISPATCHED TO THE SCENE IN RESPONSE TO A DEMONSTRATION THE PANEL FOUND THAT THE DISPATCHER VIOLATED UPPD DIVISIONAL DIRECTIVE 9208 BY MAKING A COMMAND DECISION WITHOUT CONSULTING A SUPERVISOR THE PANEL FOUND THAT THE MUSEUM ADMINISTRATOR'S ACTIONS IN PURSUIT OF THE STUDENTS WERE INAPPROPRIATE AFTER THEY LEFT THE PROPERTY OF THE UNIVERSITY MUSEUM AND NOT IN ACCORDANCE WITH THE AUTHORITY AND RESPONSIBILITY OF HIS JOB FUNCTIONS HIS ACTIONS SHOULD BE REVIEWED BY HIS SUPERVISOR FOR POSSIBLE DISCIPLINARY ACTION THE PANEL FOUND THAT THE STUDENTS SHOULD HAVE SHOWN THEIR PENN CARDS IN SUMMARY THE PANEL CONCLUDED THAT ONCE THE INCIDENT OCCURRED AT DRL DAVID RITTENHOUSE LABORATORIES THE UPPD SHOULD HAVE RECOGNIZED THAT THE REMOVAL OF THE DP'S FROM AT LEAST THREE DIFFERENT LOCATIONS WAS A FORM OF STUDENT PROTEST AND NOT AN INDICATOR OF CRIMINAL BEHAVIOR ACCORDING TO THE UNIVERSITY'S EMERGENCY PROCEDURES PROTOCOLS THE UPPD SHOULD HAVE CONTACTED THE OFFICE OF THE VICE PROVOST FOR UNIVERSITY LIFE AS SOON AS IT RECOGNIZED THAT THE STUDENTS WERE INVOLVED IN A FORM OF PROTEST ONCE THE VPUL WAS NOTIFIED OF THE PROTEST OPEN EXPRESSION MONITORS WOULD HAVE BEEN DISPATCHED TO OBSERVE AND MONITOR THE STUDENTS' ACTIONS IN COMPLIANCE WITH THE EXISTING OPEN EXPRESSION GUIDELINES SINCE THIS ACT WAS A FORM OF PROTEST AND NOT A CRIMINAL OFFENSE IT WOULD HAVE BEEN MORE APPROPRIATE FOR OPEN EXPRESSION MONITORS NOT POLICE OFFICERS TO MEDIATE AND ATTEMPT TO RESOLVE ANY FURTHER CONFLICTS THAT RESULTED FROM THE REMOVAL OF THE DP'S THE OPEN EXPRESSION MONITORS COULD HAVE INFORMED THE STUDENTS ABOUT THE OPEN EXPRESSION GUIDELINES NOTIFIED THEM IF THEIR ACTIONS VIOLATED THE GUIDELINES AND IDENTIFIED STUDENTS WHO VIOLATED THE GUIDELINES IT IS VITAL THAT ALL UPPD PERSONNEL RECEIVE ADDITIONAL TRAINING ABOUT APPROPRIATE RESPONSES TO STUDENT DEMONSTRATIONS AND PROTESTS THIS TRAINING MUST INCLUDE EXTENSIVE INFORMATION ON THE UNIVERSITY'S OPEN EXPRESSION GUIDELINES AND THE ROLE AND RESPONSIBILITY OF OPEN EXPRESSION MONITORS THE UPPD POLICY ON HANDCUFFS SECTION 5706 SHOULD BE REVIEWED TO ASCERTAIN IF THERE ARE CIRCUMSTANCES WHEN IT MAY BE INAPPROPRIATE TO HANDCUFF DETAINEES THE APPLICATION OF ANY NEWLY IMPLEMENTED POLICY SHOULD BE MONITORED TO ENSURE THAT THE POLICY IS APPLIED CONSISTENTLY IS NONDISCRIMINATORY AND HAS NO ADVERSE IMPACT ON ANY GROUP OF PEOPLE AFTER THE POLICY IS IMPLEMENTED DATA SHOULD BE MAINTAINED BY THE DEPARTMENT ON THE RACE AND SEX OF INDIVIDUALS HANDCUFFED NATURE OF OFFENSES AND REASONS FOR HANDCUFFING SEE RELATED LETTERS LETTERS TO THE EDITOR THE GREAT PAPER THEFT WSJ AUG 20 1993 9307260010 YY93 MM08 9308200099 930726 REVIEW & OUTLOOK EDITORIAL PENN THE REPORT NOT LONG AGO DURING THE MEMORABLE WATER BUFFALO TRIALS AT THE UNIVERSITY OF PENNSYLVANIA WE ALSO REPORTED ON THE CONCURRENT SUSPENSION OF DONALD FITZGERALD DIRECTOR OF SECURITY FOR PENN'S UNIVERSITY MUSEUM OF ARCHAEOLOGY AND ANTHROPOLOGY MR FITZGERALD IT APPEARED HAD RUN AFOUL OF THE PENN ADMINISTRATION WHICH HAS SOME MARKEDLY PECULIAR NOTIONS ABOUT THE DUTES OF SECURITY OFFICERS BECAUSE HE TRIED TO APPREHEND TWO WOMEN STUDENTS RUNNING OUT OF THE MUSEUM CARRYING THREE LARGE PLASTIC BAGS IT TURNED OUT THAT THE WOMEN WERE NOT AS MR FITZGERALD WORRIED RUNNING OFF WITH MUSEUM PIECES PART OF A GROUP OF BLACK ACTIVIST STUDENTS AGGRIEVED BY THE VIEWS AIRED IN THE STUDENT PAPER THE WOMEN HAD CONFISCATED ALL THE COPIES OF THE DAILY PENNSYLVANIAN AT THE MUSEUM AS THEIR FRIENDS WERE DOING ELSEWHERE AROUND CAMPUS ON APRIL 15 VIRTUALLY THE ENTIRE PRESS RUN OF THE PAPER WAS APPROPRIATED AND CARTED OFF THE ADMINISTRATION HEADED AT THE TIME BY PRESIDENT SHELDON HACKNEY WHO RECENTLY WON CONFIRMATION AS HEAD OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES DETERMINED AT ONCE THAT MR FITZGERALD SHOULD BE SUSPENDED FROM HIS SECURITY DUTIES HE WOULD REMAIN ON SUSPENSION MANY WEEKS WHILE A BLUE RIBBON PANEL APPOINTED BY THE PENN ADMINISTRATION DELIBERATED OVER THE EVENTS OF APRIL 15 THOSE DELIBERATIONS HAVE AT LAST COME TO AN END WITH THAT END HAS ALSO COME A REPORT ON THE PANEL'S FINDINGS ONE SO REMARKABLE FOR THE DEPTHS OF ITS FASTIDIOUSLY ARGUED NONSENSE THAT WE THOUGHT IT ONLY FITTING TO REPRINT PORTIONS NEARBY SEE RELATED EDITORIAL DOUBLETHINK AT THE UNIVERSITY OF PENNSYLVANIA WSJ JULY 26 1993 THE DOCUMENT IS A PURE SPECIMEN OF POLITICAL CRAVENNESS BUT SUCH CRAVENNESS IS HARDLY LIMITED TO THE UNIVERSITY OF PENNSYLVANIA THE UNHAPPY FACT OF UNIVERSITY LIFE TODAY IS THAT THERE ARE MANY PENNS AND MANY ADMINISTRATORS WHO THOUGHT THEY WERE PURCHASING PEACE BY ACCOMMODATING POLITICAL ZEALOTS THE DEGREE OF THAT EFFORT TO ACCOMMODATE IS REFLECTED IN THE CENTRAL PRONOUNCEMENT OF THE PENN PANEL'S REPORT NAMELY THE JUDGMENT THAT THE THEFT OF THE NEWSPAPERS WAS A FORM OF PROTEST AND THEREFORE NOT CRIMINAL BEHAVIOR APPARENTLY THEN ANY ASSAULT INCLUDING PRESUMABLY THE REMOVAL AND DESTRUCTION OF LIBRARY BOOKS SOME GROUP CONSIDERS OFFENSIVE MIGHT BE HELD IMMUNE FROM PROSECUTION IF IT'S A PROTEST THE REPORT GOES ON TO SAY THAT RATHER THAN TAKING ACTION THE POLICE SHOULD HAVE CONTACTED ENTITIES AT PENN CALLED OPEN EXPRESSION MONITORS TO STUDY THE STUDENTS ACTIONS THINK WE'RE MAKING THAT UP READ THE NEARBY EXCERPT THE PANEL CONCLUDES THAT THE MUSEUM SECURITY DIRECTOR'S PURSUIT OF THE WOMEN WITH THE SHOPPING BAGS WAS INAPPROPRIATE ONCE THOSE STUDENTS HAD LEFT THE PROPERTY OF THE MUSEUM AND WAS NOT IN ACCORDANCE WITH HIS JOB FUNCTIONS PRESUMABLY THEN ANY THIEF WHO WISHES TO APPROPRIATE SOME INVALUABLE MUSEUM PIECE CAN NOW CONSIDER HIMSELF IMMUNE FROM PURSUIT IF HE CAN GET PAST THE DOOR AND GROUNDS THE REPORT RECOMMENDS THAT FOR HIS INAPPROPRIATE BEHAVIOR SECURITY DIRECTOR FITZGERALD'S SUPERIORS SHOULD REVIEW HIS ROLE FOR POSSIBLE DISCIPLINARY ACTION MR FITZGERALD WHO HAS BEEN RETURNED TO ACTIVE DUTY RECEIVED A LETTER OF REPRIMAND AND WILL ALONG WITH OTHER SECURITY PERSONNEL HAVE TO ATTEND SENSITIVITY TRAINING CLASSES THERE HAVE BEEN OTHER INSTANCES IN WHICH ACTIVISTS HAVE UNDERTAKEN TO SILENCE OPPOSITION VIEWS BY REMOVING THE OFFENDING PUBLICATIONS AT PENN STATE NOT THE SAME AS THE U OF PENNSYLVANIA TWO FORMER STUDENTS JOURNALISM MAJORS NO LESS MADE OFF WITH FOUR THOUSAND COPIES OF AN ALTERNATIVE CONSERVATIVE STUDENT PUBLICATION CALLED THE LIONHEARTED HERE THE LEGAL OUTCOME WAS DIFFERENT TO THEIR CREDIT THE POLICE CHARGED THE PERPETRATORS WITH THEFT RECEIPT OF STOLEN PROPERTY AND CRIMINAL CONSPIRACY STILL IT'S A MEASURE OF HOW FAR THE ASSAULT ON FREE EXPRESSION HAS GONE ON CAMPUSES THAT THE PENN STATE UNDERGRADUATE PAPER THE DAILY COLLEGIAN ACTUALLY EDITORIALIZED IN FAVOR OF THE NOTION THAT THE REMOVAL AND BURNING OF THE LIONHEARTED WAS A LEGITIMATE ACT OF FREE EXPRESSION PRESUMABLY THESE STUDENT JOURNALISTS WILL SOON BE MAKING THEIR WAY INTO THE AMERICAN PRESS CORPS GEORGE ORWELL HAD THE WORD FOR THIS SORT OF REASONING AND FOR THE ENTIRE TENOR OF THE PENN PANEL'S REPORT THAT WORD IS DOUBLETHINK A DESCRIPTION UNFORTUNATELY AS RELEVANT TODAY AS IT WAS IN THE 1930S DURING HIS CONFIRMATION HEARINGS MR HACKNEY ASSURED THE SENATORS THAT HIS ADMINISTRATION TOOK THE MOST SERIOUS POSSIBLE VIEW OF THE THEFT OF THE DAILY PENNSYLVANIAN PAPERS AND THAT THE STUDENTS WHO TOOK THEM WOULD BE DISCIPLINED JUST HOW SERIOUSLY THE UNIVERSITY IN FACT TOOK THIS ATTACK ON THE RIGHT OF FREE EXPRESSION WILL BE CLEAR TO ANYONE WHO WANTS TO TAKE A LOOK AT THE EXCERPTS OF THIS STUNNING ORWELLIAN DOCUMENT FROM THE MINDS RUNNING AMERICA'S CAMPUSES SEE RELATED LETTERS LETTERS TO THE EDITOR THE GREAT PAPER THEFT WSJ AUG 20 1993 9307260087 YY93 MM08 9308200095 930708 ENVIRONMENT NOTILL FARMS SUPPLANT FURROWED FIELDS CUTTING EROSION BUT SPREADING HERBICIDES BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL HAMILTON COUNTY IOWA WHEN GEORGE GROVES WAS A BOY HERE IN THE HEART OF CORN COUNTRY NEATLY PLOWED FURROWS OF BLACK EARTH STRETCHED TO THE HORIZON EACH SPRING BUT THIS SEASON THE PLOWMAN'S ART IS OBSCURED BY MILLIONS OF ACRES OF DECAYING CORN STOCKS AND SOYBEAN STUBBLE INCLUDING SEVERAL HUNDRED ACRES FARMED BY MR GROVES NOW 41 YEARS OLD ONCE THE SIGN OF A LAZY FARMER THE FIELDS ARE THE SIGNATURE OF ONE OF THE FASTEST GROWING TRENDS IN AMERICAN AGRICULTURE NOTILL FARMING TILLING SOIL STILL THE DOMINANT APPROACH OF US FARMERS TENDS TO SPEED UP OXIDATION OF ORGANIC MATTER IN EFFECT BURNING UP NUTRIENTS BEFORE THEY CAN BE ABSORBED BY CROP ROOT SYSTEMS NOTILL FARMERS PLANT SEEDS DIRECTLY THROUGH THE PREVIOUS HARVEST'S CROP RESIDUE THE METHOD CUTS WIND AND WATER EROSION AND REPLENISHES THE CRUCIAL ORGANIC CONTENT OF THE TOP SOIL AS THE RESIDUE SLOWLY DECOMPOSES BUT INSTEAD OF PLOWS AND OTHER IMPLEMENTS NOTILL FARMING ALSO USES A VARIETY OF MOSTLY TOXIC CHEMICALS TO CONTROL WEEDS REVERSING A DECADELONG TREND TOWARD REDUCING HERBICIDE USE FOR FARMERS NOTILLING IS PRODUCING IMMEDIATE BENEFITS THEY HAVE CUT EROSION OF THEIR FIELDS 70 OR MORE AND BOOSTED CROP YIELDS MOST YEARS THOUGH UNUSUALLY HEAVY RAINS ACROSS THE MIDWEST THIS YEAR ARE LIKELY TO REDUCE YIELDS FOR ALL FARMERS AND BY ELIMINATING THE LABOR AND EQUIPMENT REQUIRED FOR CULTIVATION THEY'RE PRESERVING ANOTHER COMMODITY THAT'S OFTEN IN SHORT SUPPLY DOWN ON THE FARM MONEY THIS IS A REVOLUTION IN AGRICULTURE IT'S CHANGING THE CULTURE OF ROWCROP FARMING SAYS BILL RICHARDS AN OHIO FARMER WHO STEPPED DOWN LAST YEAR AS CHIEF OF THE AGRICULTURE DEPARTMENT'S SOIL CONSERVATION SERVICE EROSION CONTROL STARTED THE NOTILL MOVEMENT BUT GOOD ECONOMICS ARE REALLY MAKING IT HAPPEN COMPARED WITH CONVENTIONAL TILLAGE THOUGH NOTILL FARMING OFTEN INCREASES HERBICIDE USE GOVERNMENT FIGURES SHOW THAT INCLUDES THE WIDELY USED HERBICIDES ATRAZINE METOLACHLOR AND CYANAZINE ALL RATED POSSIBLE HUMAN CARCINOGENS BY THE ENVIRONMENTAL PROTECTION AGENCY AND THE PROBABLE HUMAN CARCINOGEN ALACHLOR NOTILL FARMERS ARE USING THE SAME OLD BAD CHEMICALS COMPLAINS RICHARD WILES A RESEARCHER WITH THE NONPROFIT ENVIRONMENTAL WORKING GROUP IN WASHINGTON THE CLINTON ADMINISTRATION ANNOUNCED A PLAN LAST MONTH TO CRACK DOWN ON PESTICIDE RESIDUES IN FOODS FOLLOWING A NATIONAL ACADEMY OF SCIENCES REPORT ON THE DANGERS POSED BY PESTICIDES IN FOODS THAT ARE HEAVILY CONSUMED BY CHILDREN THAT IS LIKELY TO PUT ADDED PRESSURE ON NOTILL FARMERS ACROSS THE COUNTRY TO CUT BACK ON CHEMICAL USE EVEN IF NOTILL FARMING USES THE SAME AMOUNT OR ONLY SLIGHTLY MORE CHEMICALS THAN CONVENTIONAL FARMING THAT'S NOT GOOD DECLARES MAUREEN HINKLE DIRECTOR OF AGRICULTURE POLICY FOR THE NATIONAL AUDUBON SOCIETY IN WASHINGTON BUT MR WILES IS OPTIMISTIC THAT NOTILL FARMERS CAN REIN IN THEIR APPETITES FOR PESTICIDES ESPECIALLY IF THEY'RE PRODDED BY THE GOVERNMENT AND PRIVATE GROUPS WE CAN CUT SOIL EROSION AND REDUCE CHEMICAL USE AT THE SAME TIME HE SAYS WE JUST HAVEN'T FOCUSED ON THAT SO FAR IN FACT NOTILL FARMING ACTUALLY REDUCES PESTICIDE CONTAMINATION OF SURFACE WATER IN MOST CASES SEVERAL GOVERNMENT AND UNIVERSITY STUDIES HAVE CONCLUDED THAT HERBICIDES ARE MUCH LESS LIKELY TO BE CARRIED AWAY IN SURFACE WATER RUNOFF FROM A NOTILL FIELD COVERED WITH CROP RESIDUE THAN FROM A CONVENTIONALLY TILLED FIELD EXCEPTIONS OCCUR WHEN NOTILL FIELDS ARE HIT WITH HEAVY RAINS IMMEDIATELY AFTER WEEDKILLERS HAVE BEEN APPLIED TO THE SOIL SURFACE IN THE EARLY SPRING STUDY RESULTS AREN'T AS CLEAR CUT ON WHETHER NOTILL FIELDS WHICH TEND TO BE RELATIVELY POROUS FACILITATE HERBICIDE CONTAMINATION OF GROUNDWATER SOURCES UNDER CERTAIN CONDITIONS LONG A FRINGE PRACTICE ON THE SCALE OF ORGANIC FARMING NOTILL FARMING HAS EXPLODED IN POPULARITY OVER THE PAST FEW YEARS THE FASTEST GROWTH LAST YEAR CAME HERE IN IOWA WHERE NOTILL ACREAGE JUMPED THREEFOLD TO 28 MILLION ACRES NATIONWIDE NOTILL FARMING LAST YEAR TOTALED ABOUT 28 MILLION ACRES OR ROUGHLY 10 OF ALL ACRES UNDER CULTIVATION THAT'S TWICE THE AMOUNT OF NOTILL ACRES AS RECENTLY AS 1989 NOTILL ACREAGE IS EXPECTED TO SWELL 20 TO 25 THIS YEAR FARMERS ARE REQUIRED BY RECENT LEGISLATION TO PRACTICE VARYING FORMS OF CONSERVATION TILLAGE OF WHICH NOTILL IS THE FASTEST GROWING ON HIGHLY ERODABLE ACREAGE BY 1995 IF THEY DON'T THEY RISK LOSING GOVERNMENT CROP SUPPORT PAYMENTS FARMERS AND INDUSTRY EXPERTS SAY THAT NOTILL FARMING PRODUCES SAVINGS IN EQUIPMENT FUEL AND LABOR COSTS IN A TYPICAL YEAR OF ABOUT 10 TO 20 AN ACRE A JOINTLY SPONSORED GOVERNMENTFARM INDUSTRY SURVEY CONDUCTED LAST YEAR FOUND THAT INDIANA FARMERS OVER THE PAST FOUR YEARS SAVED AN AVERAGE OF 1465 AN ACRE USING NOTILL TO GROW CORN AND 849 AN ACRE GROWING NOTILL SOYBEANS AS A RESULT THE LARGEST FARM EQUIPMENT MAKER DEERE & CO'S FLAGSHIP JOHN DEERE DIVISION IS SCRAMBLING TO DEFEND ITS TURF WITH NOTILL FARMERS SUBSTITUTING CHEMICAL APPLICATIONS FOR A BARN FULL OF PLOWS DISKS CULTIVATORS AND OTHER EQUIPMENT YOU CAN LOOK AT IT AS DEERE COMPETING FOR THE SAME JOB OF KILLING WEEDS AS THE HERBICIDE MANUFACTURERS SAYS W DORAL KEMPER A NATIONAL PROGRAM LEADER AT THE AGRICULTURAL RESEARCH SERVICE WING OF THE AGRICULTURE DEPARTMENT JOHN DEERE MAKES THE COUNTRY'S TOPSELLING NOTILL SOYBEAN PLANTER OR DRILL BUT FOR DEERE NOTILL FARMING APPEARS TO BE A TOUGH ROW TO HOE IT LOBBIED FEDERAL OFFICIALS TO GIVE MORE SOIL CONSERVATION CREDIT TO LESS RADICAL LOW OR MULCH TILLAGE METHODS WHICH LEAVE SOME RESIDUE ON THE SURFACE AND ACCOUNT FOR MOST OF ITS SALES DEERE'S DIRECTOR OF SALES BRANCHES RW PORTER WROTE TO MR RICHARDS THEN SOIL CONSERVATION SERVICE CHIEF LAST OCTOBER POINTING OUT THAT JOHN DEERE HAS PLACED CONSIDERABLE RESOURCES INTO DEVELOPING NEW PRODUCTS BASED ON THE EROSIONREDUCTION MERITS OF SMALL AMOUNTS OF SURFACE COVER AS OPPOSED TO NOTILL LATELY THOUGH DEERE HAS TAKEN A MORE CONCILIATORY APPROACH COMPANY OFFICIALS MET WITH CONSERVATION SERVICE AND OTHER GOVERNMENT OFFICALS IN APRIL AT THE COMPANY'S MOLINE ILL HEADQUARTERS TO DISCUSS NOTILL FARMING AND RESIDUE MANAGEMENT A COMPANY SPOKESMAN SAYS DEERE AND THE GOVERNMENT OFFICIALS INTEND TO WORK TOGETHER ON FUTURE EROSION PROJECTS AMONG CHEMICAL COMPANIES MONSANTO CO APPEARS TO BE REAPING THE BIGGEST BENEFITS FROM NOTILL FARMING THE ST LOUIS COMPANY MAKES SEVERAL TOXIC HERBICIDES THAT ARE FAVORED BY CONVENTIONAL AND NOTILL FARMERS ALIKE INCLUDING LASSO ITS BRAND NAME FOR ALACHLOR AND ITS ROUNDUP HERBICIDE A COMPOUND THAT KILLS PLANTS ON CONTACT BUT DOESN'T HAVE A TOXIC OR CARCINOGENIC EFFECT AT NORMAL USE LEVELS IS A HUGE SUCCESS WITH NOTILL FARMERS NOTILLERS USE ROUNDUP TO BURN DOWN WEEDS BEFORE THEY PLANT IN THE SPRING AND TO ATTACK WEED PATCHES THAT HAVE ESCAPED OTHER HERBICIDE APPLICATIONS IN MAY MONSANTO HAD TO RESORT TO RATIONING THE HERBICIDE BECAUSE OF SWELLING NOTILL DEMAND ANALYSTS ESTIMATE THAT ROUNDUP SALES CLOSE TO 1 BILLION LAST YEAR ROSE MORE THAN 20 WORLDWIDE IN THE SECOND QUARTER BECAUSE OF NOTILL AND OTHER TYPES OF CONSERVATION FARMING ON THE GROVES FAMILY FARM IN NORTH CENTRAL IOWA ONLY ABOUT 5 OF THE 2300 ACRES ARE RATED HIGHLY ERODABLE BY THE SOIL CONSERVATION SERVICE BUT MR GROVES IS PLANTING 500 ACRES OF NOTILL CORN AND SOYBEANS THIS YEAR UP FROM ABOUT 390 IN 1992 HIS FIRST NOTILL YEAR AND HE AND HIS BROTHER WILFRED HOPE TO CONVERT MOST OF THE FARM TO NOTILL OVER THE NEXT FEW YEARS THAT WOULD ALLOW THEM TO SELL A MAMMOTH FOURWHEELDRIVE STEIGER TRACTOR THAT COST 140000 IN 1987 AS WELL AS SEVERAL OTHER TILLAGE IMPLEMENTS TO STAY COMPETITIVE HE SAYS YOU HAVE TO KEEP YOUR COSTS DOWN AND STAY ON TOP OF THE LATEST TECHNOLOGY SOURCE ENVIRONMENTAL WORKING GROUP COMPILED FROM USDA DATA SEE RELATED LETTER LETTERS TO THE EDITOR NOTILL FARMS BETTER ALL THE WAY AROUND WSJ AUG 20 1993 9307080159 YY93 MM08 9308200088 930720 INTERNATIONAL COCACOLA INDOCHINA VIETNAM FIRM SET PACT TO START JOINT VENTURE SPECIAL TO THE WALL STREET JOURNAL SINGAPORE COCACOLA INDOCHINA PTE LTD HAS SIGNED A CONTRACT WITH VIETNAM'S CHUONG DUONG BEVERAGE FACTORY TO FORM A JOINT VENTURE IN VIETNAM BUT NEEDS THE LIFTING OF US TRADE SANCTIONS FOR THE DEAL TO BE EXECUTED A STATEMENT RELEASED IN SINGAPORE SAID THE CONTRACT WAS SIGNED IN HO CHI MINH CITY COCACOLA INDOCHINA PTE LTD IS A JOINT VENTURE BETWEEN TWO MAJOR REGIONAL BOTTLERS OF COCACOLA SINGAPORE'S F&N COCACOLA PTE LTD AND THAI PURE DRINKS LTD OF THAILAND COCACOLA CO BASED IN ATLANTA HAS MINORITY STAKES IN BOTH COMPANIES BUT US CONCERNS ARE NOW PROHIBITED FROM TRADING WITH VIETNAM UNDER THE JOINTVENTURE PLAN CHUONG DUONG'S FACILITIES TO PRODUCE SOFT DRINKS WILL BE MODERNIZED AT A TOTAL PROJECT COST OF 245 MILLION THE FACILITIES WILL THEN BE USED TO PRODUCE COCACOLA BEVERAGES WHICH AREN'T CURRENTLY SOLD IN VIETNAM THE VIETNAMESE COMPANY IS THE COUNTRY'S LARGEST SOFTDRINKS COMPANY AND IS LOCATED IN HO CHI MINH CITY THE COMPANY COMES UNDER THE AUTHORITY OF THE MINISTRY OF LIGHT INDUSTRY WHICH IS RESPONSIBLE FOR THE ADMINISTRATION OF BEVERAGE PRODUCTION THROUGHOUT VIETNAM CHUONG DUONG WAS A FORMER BOTTLER OF COCACOLA BEFORE 1975 AT WHICH TIME IT HAD ANNUAL SALES OF MORE THAN HALF A BILLION BOTTLES OF BEVERAGES MICHAEL FAM CHAIRMAN OF COCACOLA INDOCHINA PTE LTD SAID CHUONG DUONG HAS THE LOCAL KNOWLEDGE AND DISTRIBUTION NETWORK TO GUARANTEE THE SUCCESS OF THE VENTURE WHEN SANCTIONS ARE LIFTED ALTHOUGH THE US HAS GIVEN NO INDICATIONS ABOUT WHEN THAT MIGHT HAPPEN RECENT DIPLOMATIC CONTACTS BETWEEN THE TWO NATIONS HAVE OFFERED SOME HOPE SEE RELATED LETTER LETTERS TO THE EDITOR COKE IN VIETNAM SO MUCH FOR EMBARGOES WSJ AUG 20 1993 9307200008 YY93 MM08 9308200078 930708 END OF THE LINE FLOODED BY REFUGEES WESTERN EUROPE SLAMS DOORS ON FOREIGNERS ITALY USES GUNBOATS TO KEEP ALBANIANS OUT IN FRANCE GOAL IS ZERO IMMIGRATION NEIGHBORS ARE GATEKEEPERS BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE MOROCCAN GUARD BINOCULARS RAISED CAN EASILY MAKE OUT THE HUMP OF GIBRALTAR IN THE HAZE ACROSS THE STRAIT HIGH IN HIS TOWER ON THE TIP OF CABO NEGRO HE SCANS FOR AFRICANS IN SMALL BOATS ON THEIR WAY TO SPAIN HE IS THERE TO STOP THEM THE GUARD ACTS BORED BUT THE INTERIOR MINISTRY BOSS BEHIND HIM SOUNDS RESENTFUL THIS WHOLE JOB HE SAYS ONLY MAKES THE BEARDS HIS WORD FOR ISLAM'S FUNDAMENTALISTS THAT MUCH MORE PERSUASIVE WHEN THEY CALL FOR A JIHAD AGAINST CHRISTIANITY A POLISH GUARD DOESN'T NEED BINOCULARS TO FIX AN EYE ON GERMANY IT LIES 50 YARDS FROM HIS TREE COVER BEYOND THE RIBBON OF THE RIVER NEISSE IF A ROMANIAN SPRINGS FROM THE BUSHES AND RUNS FOR THE RIVER THE GUARD HAS TO SPRINT IN PURSUIT BUT THE RIFLE ON HIS SHOULDER IS MORE ENCUMBRANCE THAN THREAT IT'S ONLY FOR SHOW STANDING ON THE LEVEE AT DUSK THE GUARD'S SUPERIOR OFFERS A BIT OF HISTORY IN 1939 WHEN POLAND WAS STORMED BY TWO ARMIES WE RAN TO THE WEST THROUGH ROMANIA HE SAYS ROMANIA PERMITTED US IN A SILENT WAY TO RUN NOW THE SITUATION IS REVERSED WE POLES VIEW THESE ROMANIANS WITH A CERTAIN SENTIMENT FROM THE OUTSIDE LOOKING IN WESTERN EUROPE STILL HAS ITS OLD CHARM MILLIONS ACHE FOR ITS EMBRACE BUT TODAY THE WEST HAS HAD ITS FILL OF IMMIGRANTS AND FOR THE DIRTY WORK OF SHIPPING THEM OUT AND KEEPING THEM OUT IT IS HIRING GATEKEEPERS THE COUNTRIES ON ITS OUTER RIM THE RESPONSIBILITY DOESN'T GENERATE ANY PRIDE I'D LIKE TO SEE LEGAL ORDERLY IMMIGRATION SAYS TERRAB MOUHCINE WHO GOVERNS MOROCCO'S NORTHCOAST DISTRICT OF TETOUAN LET'S MANAGE THIS FLOW INSTEAD OF CREATING ANTAGONISMS AND BLAMING EVERYTHING ON IMMIGRATION EUROPE IS CLOSING DOWN ON ITSELF HIS WORDS ECHO ALL THE WAY TO WARSAW THE WHOLE OF EUROPE IS CLOSING SAYS TOMASZ KOZLOWSKI THE POLISH DEPUTY INTERIOR MINISTER FOR THE WEST POLAND IS A BUFFER AGAINST A FLOOD FROM THE EAST THIS IS NOT A ROLE ANY COUNTRY SHOULD SERVE FOR OTHERS WE AREN'T THE WEST'S IMMIGRATION OFFICE FEAR OF FOREIGNERS IT SEEMS IS REPLACING FEAR OF NUCLEAR WAR AS THE DISTRACTION OF THE DECADE FOR WESTERN EUROPE'S RICH NATIONS THE DEMOGRAPHICS CAN'T BE DENIED 560000 ASYLUM SEEKERS IN 1992 AGAINST 65000 IN 1983 A YEARLY INFLUX OF NEARLY TWO MILLION PEOPLE PERHAPS FIVE MILLION ILLEGAL ALIENS WITH CHINESE BOAT PEOPLE WASHING UP IN SAN FRANCISCO AND ON NEW YORK'S ROCKAWAY BEACH THE US ISN'T IMMUNE TO THIS BUT EUROPEANS ARE LESS FLEXIBLE AND MORE FRIGHTENED THE BRITISH KEEP A LID ON THE NUMBER OF ASIANS AND WEST INDIANS IN THEIR MIDST WHILE LISTENING FOR THE TICK OF AN IMMIGRATION TIME BOMB IN HONG KONG THE FRENCH EARS COCKED FOR SOUNDS OF CIVIL WAR IN ALGERIA HAVE DECLARED THEMSELVES OFF LIMITS TO STRANGERS BURNED BY RACISM GERMANY STOPPED HEARING MOST NEW ASYLUM PLEAS AS OF JULY 1 AND WILL KEEP LOOKING OVER THE HEADS OF ITS TURKISH AND ROMANIAN EXILES TO THE HORDES WHO WOULD DO ANYTHING TO GET OUT OF RUSSIA EUROPE NEEDS NEW BLOOD BUT IT'S IMPOSSIBLE TO DISCUSS THAT SAYS JAN NIESSEN OF THE CHURCHES COMMITTEE FOR MIGRANTS IN EUROPE THE WHOLE DEBATE ON IMMIGRATION TAKES PLACE IN A WILDERNESS OF FEAR WE HAVE TOO MANY WE CAN'T COPE WE'RE NOT TAKING ANY MORE PEOPLE WILL BREAK IN ANYHOW ADDS ONE OF HIS COLLEAGUES THE MORE RIGID YOU GET THE MORE ILLEGALS YOU GET IT'S IMPOSSIBLE TO CLOSE THESE BORDERS NOBODY HAS EVER SUCCEEDED EXCEPT THE COMMUNISTS THE URGE TO JUMP BORDERS WAS THE TRIPWIRE OF THEIR DOWNFALL IN 1989 FREEDOM TO TRAVEL EASTERN EUROPE ASSUMED CAME WITH FREEDOM WHEN RUSSIANS GOT ACCESS TO PASSPORTS THIS YEAR BUT NOT TO VISAS THE NEWSPAPER MOSCOW NEWS WAS AMAZED RUSSIA AND THE WEST HAVE SWAPPED PARTS AN IRON CURTAIN HAS DROPPED BEFORE THE MAJORITY OF THOSE WANTING TO ENTER EUROPE TALK OF ERASING BORDERS WITHIN THE EUROPEAN COMMUNITY HAS TEASED OUTSIDERS ALL THE MORE WHILE FREIGHT BEGAN ROLLING UNIMPEDED AMONG THE 12 EC STATES THIS YEAR PEOPLE DIDN'T BARRIERS TO CITIZENS ARE SUPPOSED TO BE GONE BY JANUARY YET ONLY EIGHT COUNTRIES HAVE STARTED PULLING THEM DOWN BEFORE TRAVEL GETS EASIER INSIDE THE COMMUNITY THE STICKLERS SAY PENETRATING THE PERIPHERY HAS TO GET HARDER FOR IMMIGRANTS THE EC IS NO GOLDEN MOUNTAIN THAT IS WHAT THE CHINESE CALL THE US FOR ALL ITS DOUBTS GOING BACK TO BENJAMIN FRANKLIN WHO THOUGHT GERMANS WOULDN'T ASSIMILATE THE US SEES ITSELF AS AN IMMIGRATION COUNTRY AS SUCH IT FORMS A SMALL OPENHEARTED CLUB WITH CANADA AUSTRALIA AND NEW ZEALAND COUNTRIES ON THE EUROPEAN SIDE OF THE ATLANTIC DON'T FEEL THE SAME AS OXFORD UNIVERSITY DEMOGRAPHER DAVID COLEMAN NOTES A EUROPEAN WOULD SAY IT'S THE AMERICANS WHO ARE PECULIAR ONLY FRANCE HAS VALUED STRANGERS BASING NATIONALITY ON IDEALS NOT BLOODLINE THAT ENDED IN JUNE WHEN THE NEW GOVERNMENT SET A GOAL OF ZERO IMMIGRATION IN EUROPE'S WORST IDENTITY CRISIS MEANWHILE GERMANY IS FIGHTING RACISM BY PENALIZING ITS VICTIMS WITHHOLDING CITIZENSHIP FROM TURKS BORN THERE AND DOING ITS BEST TO SHUT OUT NEW ARRIVALS EUROPEANS CLING TO A SELFIMAGE OF STATES WHERE EVERYONE LOOKS EATS AND PRAYS ALIKE BUT REALITY DIFFERS GERMANY HAD 13 MILLION FOREIGN WORKERS IN 1910 AND THE FRENCH FOREIGN POPULATION IS NO GREATER TODAY AT 6 THAN IN 1931 THE FOREIGNERS WHO REBUILT THE CONTINENT AFTER WORLD WAR II STAYED AND MULTIPLIED YET NO COUNTRY IN WESTERN EUROPE TODAY HAS A SYSTEM OF PLANNED IMMIGRATION PEOPLE LEAK IN AND SLOSH AROUND SOME SOON FIND HOW UNWELCOME THEY ARE OTHERS BY NOW KNOW IN ADVANCE IN THE CROWDS OF ROTTERDAM THE DUTCH PORT A THIRD OF THE FACES LOOK ASIAN OR AFRICAN PERHAPS ONE IN FOUR HAS NO BUSINESS BEING THERE PAULUS KIRK A BRICK CHURCH ON THE DISTRICT'S EDGE IS WHERE YAHYA ZAAJ WAS DUMPED AFTER HE WAS SHOT HE IS 28 A MOROCCAN A YEAR AGO HE BOARDED A FERRY IN TANGIER WITH A FRENCH VISA AND BREEZED UNNOTICED ACROSS BELGIUM TO HOLLAND HE WORKED WITHOUT PAY IN A MOROCCAN LUNCH BAR THEN A FRIEND FOUND HIM A PLACE TO SHARE WITH A DUTCHMAN DAYS AFTER HE MOVED MR ZAAJ SAYS A MAN BURST IN AND FIRED A BULLET INTO HIS KNEE I DIDN'T KNOW HIM HE SAYS SEATED ON A COT WITH A BRACE ON HIS LEG MR ZAAJ HAS LOST HIS PASSPORT BUT THE POLICE HAVE TRACED HIS NATIONALITY WHEN HIS LEG HEALS THEY WILL SEND HIM HOME MANY PEOPLE FROM MOROCCO WANT TO COME HERE HE SAYS THEY DON'T HAVE A TRUE IMAGE OF EUROPE THEY THINK IT'S PARADISE WHEN MR ZAAJ IS ASKED WHAT HE THINKS OF EUROPE HIS REPLY IS UNPRINTABLE WRITING LETTERS IN THE NEXT ROOM IS A ROMANIAN NAMED DORIN HE CROSSED POLAND BY TRAIN LAST YEAR AND PADDLED THE NEISSE TO GERMANY BUT THE 30YEAROLD ENGINEER KNEW BETTER THAN TO STAY HE TOOK A TRAIN TO HOLLAND NEVER SHOWING HIS PASSPORT FILED AN ASYLUM CLAIM TO BUY TIME AND HEADED FOR THE NEW ZEALAND EMBASSY TO APPLY FOR PERMANENT RESIDENCE NOW HE IS WAITING FOR HIS VISA WHY NEW ZEALAND HE SAYS WHY DO YOU THINK BECAUSE IT'S NOT WESTERN EUROPE THEY'LL ACCEPT ME AND EUROPE WILL BE GLAD TO SEE HIM GO REDUCING BY ONE ITS HUGE PILE OF UNPROCESSED PLEAS FOR POLITICAL ASYLUM IN THE ASHES OF WAR THE 1951 GENEVA CONVENTION PROMISED ASYLUM TO ANYONE WITH A WELLFOUNDED FEAR OF PERSECUTION BECAUSE EACH CLAIM HAS TO BE CHECKED THOUSANDS FLEEING POVERTY NOT PERSECUTION HAVE SLIPPED INTO EUROPE WITH ITS CHINESE ARRIVALS THE US HAS SEEN HOW BIG THE ASYLUM LOOPHOLE CAN BE IN EUROPE IT HAS EXPANDED RAPIDLY IN THE PAST 10 YEARS AND THE EC IS ALREADY DEVOTING A GOOD DEAL OF BUREAUCRATIC ENERGY TO CLOSING IT LAST DECEMBER ITS LEADERS RECOGNIZED SOMETHING CALLED THE FIRSTSAFECOUNTRY PRINCIPLE IT MEANS ANYONE SEEKING REFUGE MUST ASK FOR IT IN THE NEAREST SAFE PLACE EVEN PART OF HIS OWN COUNTRY THOSE WHO DON'T SAID THE EC SHOULD BE BUMPED TO THE LAST SAFE COUNTRY THEY CROSSED BEFORE ENTERING THE COMMUNITY THOSE WHO FAKE OR DESTROY PAPERS SHOULD HAVE ASYLUM CLAIMS STAMPED MANIFESTLY UNFOUNDED AND BE DENIED ENTRY ON THE SPOT IN THE FOG OF DIVERGING NATIONAL INTERESTS THE NEW RULES WILL TAKE TIME TO SHAPE UP IN THE INTERIM POLITICALLY PINCHED WESTERN GOVERNMENTS ARE BUILDING WALLS OF THEIR OWN NOT ONLY ON BORDERS IT HAS BECOME GENERAL PRACTICE TO FINE AIRLINES FOR FLYING UNDOCUMENTED ASYLUM SEEKERS WHOSE CLAIMS DON'T STAND UP SO CARRIERS PLAY IMMIGRATION JUDGES INSPECTING PAPERS AS PASSENGERS BOARD ONCE IN A COUNTRY FAILED APPLICANTS FIND IT HARDER TO LIE LOW GERMANY FLIES MANY ROMANIANS STRAIGHT BACK TO BUCHAREST FRENCH COPS MAY SOON HAVE THE POWER TO DEMAND ANYONE'S PAPERS HOLLAND GOES ONE BETTER NAMES OF UNDESIRABLES FLASH ON COMPUTERS AT STATE OFFICES ILLEGALS MEET THE FRONTIER EVERYWHERE HOUSING INSURANCE SOCIAL SERVICES SAYS MARIJKE BIJL WHO WORKS WITH ALIENS IN THE HAGUE EVERY AGENCY HAS ITS BORDER PATROL BUT MANY ASYLUM SEEKERS GET BLOCKED AT EUROPE'S DOORSTEPS EVEN BEFORE IT PUT THE SCREWS ON IMMIGRANTS FRANCE QUIETLY TIGHTENED ITS ASYLUM RULES ONLY HALF THE ARRIVALS WHO TRIED LAST YEAR MANAGED TO FILE CLAIMS SINCE BOATLOADS OF ALBANIANS CAME ASHORE IN ITALY TWO YEARS AGO ITALIAN NAVAL SHIPS HAVE PATROLLED ALBANIA'S TERRITORIAL WATERS TO SCARE OFF NEW FLOTILLAS OF 51000 RECENT WOULDBE ASYLUM CLAIMANTS WHO REACHED ITALY FROM ELSEWHERE BORDER GUARDS HAVE SUMMARILY DEPORTED 48000 SPAIN AND PORTUGAL WERE ONCE SOURCES OF LABOR FOR THE NORTH AND THEN GATEWAYS TO EUROPE FOR NORTH AFRICANS NOW BOTH HAVE PASSED STERN LAWS TO KEEP IMMIGRANTS OUT AND GERMANY ONCE THE WORLD'S ASYLUM MECCA HAS REVOKED ITS OVERGENEROUS CONSTITUTIONAL WELCOME AND MADE THE FIRSTSAFECOUNTRY PRINCIPLE ITS OWN ALL OF WHICH RAISES A QUESTION IF THE EC PROCLAIMS ITS NEXTDOOR NEIGHBORS SAFE HOW ARE THOSE COUNTRIES SUPPOSED TO REACT ONE WAY IS TO DECLARE THEIR OWN NEIGHBORS SAFE THUS AUSTRIA HAS STOPPED ADMITTING BOSNIANS HEADED FOR GERMANY WHO ARRIVE VIA SAFE SLOVENIA AFTER CROSSING SAFE CROATIA WITH 750000 REFUGEES BOTTLED UP THERE CROATIA HAS BEEN FORCED TO SHUT ITS BORDER WITH BOSNIA ANOTHER WAY IS TO REFUTE THE SAFECOUNTRY PRINCIPLE AND REFUSE ANYONE'S REJECTS THAT IS HOW THE CZECH REPUBLIC PARRIED GERMANY'S PLEA TO TAKE BACK ROMANIANS THE CZECHS WORRY THAT SLOVAKIA WON'T TAKE THEM IN TURN AND THE SLOVAKS DOUBT HUNGARY WILL ALREADY STUCK WITH A BACKWASH OF AUSTRIA'S YUGOSLAV REJECTS HUNGARY IN THE PAST YEAR HAS DENIED ENTRY TO 13 MILLION PEOPLE THE VICTIMS OF THIS MESS AID AGENCIES ARGUE BECOME REFUGEES IN ORBIT PUSHING THIS BURDEN TO THE FRINGES OF THE COMMUNITY SAYS THE IMMIGRATION LAW PRACTITIONERS ASSOCIATION IN LONDON ALLOWS PEOPLE TO BE DUMPED LIKE UNCLAIMED BAGGAGE IN A THIRD STATE WHERE THEY MAY HAVE NO KNOWLEDGE OF THE LANGUAGE OR MEANS OF SUPPORT ONLY TWO SUCH STATES HAVE SUBMITTED TO PLAYING ALONG POLAND AND MOROCCO THEIR RECORD SO FAR SCARCELY INSPIRES OPTIMISM TWO YEARS AGO UNDER EC PRODDING SPAIN SLAPPED A VISA REGIME ON MOROCCANS AND OTHER AFRICANS THAT BEGAT A BUSINESS FOR MOROCCAN SMUGGLERS FERRYING ILLEGALS IN FLIMSY BOATS ACROSS THE STRAIT OF GIBRALTAR AT NIGHT AND SHOVING THEM OVERBOARD TO SWIM THE LAST 200 YARDS TO THE SPANISH COAST IN 1992 1000 DROWNED LAST OCTOBER SPAIN PRODDED MOROCCO TO DO SOMETHING KING HASSAN II AGREED IF THE EC WOULD GIVE HIM 2 BILLION IN AID WITH THE EC PONDERING THAT MOROCCO CONCENTRATED ITS NAVY ON THE NORTH COAST AND PUT 3500 SOLDIERS ON THE BEACHES IT BEGAN TO TAKE BACK ITS OWN CITIZENS PICKED UP IN EUROPE AS WELL AS AFRICANS WHO REACHED SPAIN THROUGH MOROCCO IT PENNED THE BLACKS IN A BULL RING UNTIL THEIR EMBASSIES FLEW THEM HOME ASYLUM WAS OUT OF THE QUESTION TODAY BLACK FACES RARELY APPEAR ON THE STREETS OF TANGIER THEY GOT THE MESSAGE SAYS A MAN AT THE INTERIOR MINISTRY MOROCCO IS OUT BUT NOT OUT COLD IN A TANGIER ALLEY A SMUGGLERS' MIDDLEMAN CONFIDES THAT THE TRADE IN PEOPLE IS LESS INTENSE BUT STILL GOES ON BEHIND KING HASSAN'S CALL FOR AID SAYS A WESTERN DIPLOMAT IS THE THREAT THAT IF HE DOESN'T GET THE HELP WE'LL SOON BE BACK TO HUNDREDS GOING OVER EVERY NIGHT POLAND LACKS TWO MOROCCAN ADVANTAGES WHEN IT COMES TO SEALING BORDERS A PROTECTIVE RING OF DESERT AND SEA AND A POLICE STATE IT HAS ONE BIG DISADVANTAGE IN RETURN FOR GAINING PERMISSION FOR ITS CITIZENS TO TRAVEL WITHOUT VISAS POLAND ACCEPTS ANY ILLEGALS AND ASYLUM REJECTS WHO PASS THROUGH ITS TERRITORY ON THEIR WAY TO WESTERN EUROPE INGENUOUSLY ITS DIPLOMATS SIGNED THAT DEAL JUST BEFORE GERMANY CANCELED THE ASYLUM LAW THAT DREW 100000 ROMANIANS ACROSS POLAND LAST YEAR NOW POLAND WILL GET THEM COMING AND GOING TO EASE THE BLOW GERMANY SAYS IT WILL EXPEL JUST 10000 PEOPLE THIS YEAR AND HAS ADDED A 75 MILLION SWEETENER THE POLES AREN'T OVERJOYED REFUGEES FOR MONEY SNAPS MR KOZLOWSKI OF THE INTERIOR MINISTRY IT'S NOT A GOOD TRADE GERMANY MAY HAVE ANOINTED IT A SAFE COUNTRY BUT POLAND IS IN NO SHAPE FOR AN ONSLAUGHT IT HAS NO ASYLUM LAW OR ASYLUM BUREAUCRACY ITS RESPONSE IS TO MOVE EUROPE'S EDGE EASTWARD HARDENING ITS OWN ENTRY RULES AND SPENDING GERMANY'S MONEY ON FAST BIKES AND INFRARED SIGHTS FOR ITS BORDER WITH BELARUS AND UKRAINE THE POLES PREFER GENTLER SOLUTIONS LEGALLY REGISTERED AND FREE TO TRAVEL THEY WORK IN THE WEST BY THE TENS OF THOUSANDS ORDERED MIGRATION MIGHT DO AS WELL FOR OTHERS JUST AS AID AND TRADE MIGHT DISSUADE MANY FROM STRAYING TO START WITH BUT LITTLE ELSE SHORT OF MACHINE GUNS WILL KEEP THE CRASHERS FROM EUROPE'S NEW GATES MOTHERS WITH SMALL BABIES CROSS THE RIVER IN THE WINTER AT NIGHT CAPT ADAM PUDLO IS SAYING YOU CAN'T CONSIDER RATIONAL REASONS THESE PEOPLE ARE DESPERATE EARLY ON A GRAY MORNING AT A GUARD POST NEAR THE NEISSE THE CAPTAIN SHOWS OFF THE OVERNIGHT CATCH 12 TIRED MEN NINE ROMANIANS AND THREE RUSSIANS LOCKED BEHIND BARS IN A SMALL CELL THEY DASHED FOR THE RIVER IN THE DARK AND DIDN'T MAKE IT ACROSS NOW THEY ARE PUT IN A VAN DRIVEN TO A NEARBY RAILROAD STOP AND TOLD TO BE OUT OF POLAND IN TWO DAYS WE NEVER REALLY FIND OUT IF THEY LEAVE OR NOT SAYS THE CAPTAIN THE VAN DRIVES OFF THE MEN STAND UNGUARDED AT THE STATION DOOR THEY DON'T WANT ROMANIANS IN GERMANY ONE SAYS IT'S IMPOSSIBLE TO ASK FOR ASYLUM THEN WHY DID HE RUN FOR THE RIVER I WAS GOING TO BELGIUM AND NOW I'LL TRY AGAIN A TRAIN ROLLS IN THE MEN DO NOTHING THEN AS IT PULLS AWAY THEY TROT FOR IT AND HOP ABOARD THE NEXT STOP IS TWO MILES DOWN THE LINE ON THE BANKS OF THE NEISSE TONIGHT THEY WILL BE BACK SEE RELATED LETTER LETTERS TO THE EDITOR GERMANY STILL GRANTS POLITICAL ASYLUM WSJ AUG 20 1993 9307080004 YY93 MM08 9308190151 930819 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AUCTION 180 BILLION CANADIAN DOLLARS US137 BILLION OF 65 BONDS DUE SEPT 1 1998 AT AN AVERAGE YIELD OF 6444 THE NEW BONDS WILL BE USED TO REDEEM IN PART C245 BILLION OF GOVERNMENT BONDS MATURING SEPT 1 9308190150 930819 CANADIAN FIRMS' SHIPMENTS UP OTTAWA CANADIAN MANUFACTURERS RECORDED A 05 RISE IN SHIPMENTS IN JUNE FROM MAY AND A 28 INCREASE IN NEW ORDERS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RISE IN SHIPMENTS FOLLOWED TWO CONSECUTIVE MONTHS OF DECLINE IT WAS LED BY A 6 INCREASE IN AUTO INDUSTRY SHIPMENTS 9308190149 930819 ICN TO REDEEM BONDS COSTA MESA CALIF ICN PHARMACEUTICALS INC SAID IT GAVE NOTICE OF THE REDEMPTION OF ITS 6 3/4 CONVERTIBLE SUBORDINATED BONDS AT THE BONDHOLDERS' OPTION AND SAID THE REDEMPTION WILL HELP TO CONTINUE TO PARE INTEREST EXPENSE AND WILL SUPPORT THE BIOTECHNOLOGY COMPANY'S PROGRAM TO REDUCE LONGTERM DEBT THE ORIGINAL 75 MILLION 6 3/4 BOND OFFERING WAS ISSUED IN INTERNATIONAL MARKETS IN 1986 THE BONDS ARE CONVERTIBLE INTO ICN COMMON SHARES 9308190148 930819 ECONOMY GERMANY SEES BOTTOM OF ITS RECESSION BUT OECD IS PREDICTING MORE JOB LOSSES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN GOVERNMENT SAID THE NATION'S RECESSION MAY HAVE BOTTOMED OUT IN THE SECOND QUARTER BUT THAT OUTLOOK WAS OVERSHADOWED BY A SEPARATE FORECAST OF A SLUGGISH RECOVERY THAT COULD ELIMINATE AN ADDITIONAL 700000 JOBS BY LATE 1994 THE BONN ECONOMICS MINISTRY SAID THE WESTERN GERMAN ECONOMY WAS UNCHANGED IN THE SECOND QUARTER FROM THE PREVIOUS PERIOD SUGGESTING THAT GERMANY'S WORST POSTWAR RECESSION HAD BEEN CHECKED AT THE SAME TIME IT SAID EASTERN GERMANY SHOWED SIGNS OF CONTINUING A GRADUAL RECOVERY FROM THE SHOCK OF UNIFICATION THE MINISTRY DIDN'T PROVIDE PRECISE DATA OR A YEARONYEAR PERFORMANCE FOR THE WESTERN GERMAN ECONOMY IN THE SECOND QUARTER IN THE FIRST QUARTER GROSS DOMESTIC PRODUCT FELL 15 FROM THE FOURTH PERIOD AND SLID 32 FROM THE FIRST QUARTER OF 1992 US ECONOMISTS AND POLICY MAKERS CLOSELY FOLLOW THE HEALTH OF GERMANY'S ECONOMY EUROPE'S LARGEST A PICKUP IN BUSINESS THERE COULD HERALD A TURNAROUND FOR THE CONTINENT AND PROVIDE AN ENGINE FOR GROWTH THAT WOULD BENEFIT THE US IN A MORE SOBERING ANALYSIS THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT PREDICTED A SLUGGISH RECOVERY FOR A GERMAN ECONOMY HANDICAPPED BY SLACK EXPORT DEMAND HIGH COSTS AND NEW TAXES THE PARISBASED INSTITUTION SAID TOTAL GERMAN UNEMPLOYMENT WON'T PEAK UNTIL LATER IN 1994 WHEN IT PREDICTED UNEMPLOYMENT WILL TOTAL 42 MILLION PEOPLE OR 109 OF THE WORK FORCE GERMAN UNEMPLOYMENT TOTALED 35 MILLION IN JULY THE OECD URGED GERMANY TO CONTROL PUBLICSECTOR EXPENDITURE AND WAGES AND IT PRESSED THE BUNDESBANK TO USE EVERY OPPORTUNITY TO BRING DOWN GERMAN INTEREST RATES TO HELP SPUR DEMAND THE OECD SEES WESTERN GERMANY'S ECONOMY FALLING BY AN INFLATIONADJUSTED 32 FOR THE FIRST HALF FROM THE PREVIOUS PERIOD BUT IT EXPECTS THE DECLINE TO SLOW IN THE SECOND HALF WHEN IT BELIEVES GDP COULD SHRINK BY AN ADDITIONAL 18 FROM THE FIRST HALF FOR 1994 THE OECD SEES THE WESTERN GERMAN ECONOMY GROWING BY 17 IN THE FIRST HALF AND 24 IN THE SECOND HALF EASTERN GERMANY'S ECONOMY IS EXPECTED TO GROW 49 THIS YEAR AND 64 IN 1994 WHEN INCLUDING BOTH EAST AND WEST GERMANY'S ECONOMY IS EXPECTED TO SHOW A 19 DECLINE THIS YEAR AND A MILD 14 GROWTH RATE NEXT YEAR THE OECD FORECASTS WERE CONSIDERABLY GLOOMIER THAN THOSE ISSUED BY THE GOVERNMENT AND PRIVATESECTOR ECONOMISTS WHO WIDELY HOLD OUT HOPE FOR A RECOVERY BEGINNING IN THE FOURTH QUARTER SAID AN OECD OFFICIAL WE ARE TAKING INTO ACCOUNT THE WEAKNESS OF THE OVERALL WORLD ECONOMY AND THAT MANY NEGATIVE FACTORS ARE LIKELY TO BE CARRIED OVER INTO THE SECOND HALF GERMANY'S BUNDESBANK WAS EQUALLY GLOOMY ABOUT THE PROSPECT OF A QUICK PICKUP IN GERMANY'S DEPRESSED LABOR MARKETS THE CENTRAL BANK SAID IN ITS LATEST ECONOMIC SURVEY THAT IT TAKES CONSIDERABLE TIME BEFORE JOB MARKETS RESPOND TO ECONOMIC RECOVERY IT ALSO SAID GERMANY'S HIGH HIRING COSTS COULD DETER RECESSIONBRUISED COMPANIES FROM ADDING STAFF IN ITS REPORT THE OECD SAID THE NEXT 18 MONTHS SHOULD SEE SHRINKING DISPOSABLE INCOME AND HIGH UNEMPLOYMENT RATES HOLDING DOWN EXPANSION IN CONSUMER DEMAND DEFLATIONARY FISCAL POLICIES IT SAID ALSO CANNOT BE EXPECTED TO STIMULATE GROWTH THESE POLICIES INCLUDE CUTBACKS IN GOVERNMENT SPENDING LAST JANUARY'S INCREASE IN THE VALUEADDED TAX ON RETAIL GOODS A PLANNED TAX ON PETROLEUM PRODUCTS AND HIGHER SOCIALSECURITY CONTRIBUTIONS IN 1994 CAPPED BY A PLANNED INCOME TAX SURCHARGE IN 1995 BONN'S HOPES FOR AN EXPORTLED RECOVERY ALSO ATTRACTED DOUBTS FROM OECD ECONOMISTS THEY POINTED TO EXPECTED GROWTH IN GERMAN EXPORT MARKETS OF ONLY 25 FOR 1993 AND 5 FOR 1994 MOREOVER THE ABILITY OF GERMAN EXPORTERS TO KEEP PACE WITH EVEN THAT MARKET EXPANSION IS PUT INTO QUESTION BY AN APPRECIATING MARK AND WORSENING COSTCOMPETITIVENESS AT HOME THE RESULT COULD BE FURTHER LOSS OF MARKET SHARE THE OECD WARNED THE OECD POINTED TO FURTHER DELAYS IN A SELFSUSTAINING RECOVERY IN EASTERN GERMANY WHICH IS STILL HEAVILY DEPENDENT ON BONN AID FOR EMPLOYMENT THE OECD SAID EASTERN GERMANY'S RECOVERY HAS BEEN STUNTED BY RAPID WAGE INCREASES THAT HAVE OUTPACED PRODUCTIVITY GROWTH THIS HAS CAUSED EASTERN GERMAN UNIT LABOR COSTS TO ROCKET TO LEVELS 60 ABOVE WESTERN GERMAN COSTS HAMSTRINGING EFFORTS TO COMPETE IN WESTERN MARKETS AND DETERRING INVESTMENT 9308190147 930819 INTERNATIONAL ALLIEDLYONS VENTURE IN INDIA LONDON ALLIEDLYONS PLC FOLLOWING A NUMBER OF COMPETITORS ANNOUNCED A JOINT VENTURE TO PRODUCE AND MARKET LIQUOR IN INDIA ALLIEDLYONS SAID ITS SPIRITS AND WINE DIVISION HIRAM WALKER RECEIVED APPROVAL FROM THE INDIAN GOVERNMENT TO FORM AN EQUAL JOINT VENTURE WITH JAGATJIT INDUSTRIES LTD OF NEW DELHI THE VENTURE WILL BOTTLE SCOTCH WHISKY IN INDIA AND PRODUCE A RANGE OF INDIGENOUS SPIRITS FOR DOMESTIC CONSUMPTION AND EXPORT 9308190146 930819 LITTON TEAM GETS CONTRACT BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID A TEAM LED BY ITS APPLIED TECHNOLOGY DIVISION RECEIVED A 1221 MILLION CONTRACT FROM THE GOVERNMENT OF GREECE LITTON A PROVIDER OF RESOURCEEXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ELECTRONIC AND DEFENSE SYSTEMS SAID THAT THE TEAM WILL PROVIDE ELECTRONICWARFARE SYSTEMS FOR 80 GREEK AIR FORCE F16 FIGHTERS THE COMPANY SAID THE CONTRACT ALSO INCLUDES A 346 MILLION OPTION FOR ADDITIONAL SYSTEMS AND TEST EQUIPMENT 9308190145 930819 WHO'S NEWS NATIONAL REGISTRY INC NATIONAL REGISTRY INC ST PETERSBURG FLA FUAD ABUZAYYAD A LAWYER WHO HAS REPRESENTED VARIOUS COMPANIES WAS NAMED CHIEF EXECUTIVE OFFICER AND COCHAIRMAN NEW POSTS AT THIS DEVELOPER OF ELECTRONIC IDENTIFICATION SYSTEMS MR ABUZAYYAD WILL SERVE AS COCHAIRMAN WITH J ANTHONY FORSTMANN THE COMPANY'S FOUNDER 9308190144 930819 WHO'S NEWS ROYCE LABORATORIES INC ROYCE LABORATORIES INC MIAMI CHARLES J SIMONS 74 YEARS OLD A MANAGEMENT AND FINANCIAL CONSULTANT WAS ELECTED A DIRECTOR OF THIS PRODUCER OF PHARMACEUTICALS EXPANDING THE BOARD TO EIGHT MEMBERS 9308190143 930819 UNOCAL FIELD NOW PRODUCING LOS ANGELES UNOCAL CORP SAID CRUDEOIL PRODUCTION STARTED AT HORIZON A NEW OIL FIELD IN THE NETHERLANDS SECTION OF THE NORTH SEA OPERATED BY THE COMPANY'S UNOCAL NETHERLANDS BV UNIT THE FIELD IS IN THE P/9 BLOCK 30 MILES OFF THE COAST IN 100 FEET OF WATER PRODUCTION IS EXPECTED TO PEAK AT 18000 BARRELS A DAY IN EARLY 1994 ONCE THE FIVE INITIAL HORIZONTAL WELLS ARE OPERATING PRODUCTION BEGAN THIS WEEK FROM THE FIRST WELL AT 3800 BARRELS A DAY THE OTHER FOUR WELLS ARE SCHEDULED TO BE DRILLED LATER THIS YEAR THE OIL COMPANY SAID 9308190142 930819 WHO'S NEWS METROPOLITAN LIFE INSURANCE CO METROPOLITAN LIFE INSURANCE CO NEW YORK THOMAS PYLE 53 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF METLIFE'S HMO SUBSIDIARY METLIFE HEALTHCARE CORP A NEW POSITION EFFECTIVE MIDSEPTEMBER METLIFE'S HMOS HAVE 370000 MEMBERS HE IS CURRENTLY SENIOR ADVISER TO THE BOSTON CONSULTING GROUP AND WAS FORMERLY CHIEF EXECUTIVE OF HARVARD COMMUNITY HEALTH PLAN AN HMO WITH 500000 MEMBERS 9308190141 930819 REED ELSEVIER ACQUISITION TALKS LONDON ANGLODUTCH PUBLISHING GROUP REED ELSEVIER PLC SAID IT HOPES TO COMPLETE SOON ITS PLAN TO BUY THE ASSETS OF OFFICIAL AIRLINE GUIDES REED ELSEVIER SAID THAT CONTRACT NEGOTIATIONS ARE UNDER WAY WITH THE JOINT ADMINISTRATORS OF MAXWELL COMMUNICATION CORP AND THAT THEY SHOULD BE COMPLETED WITHIN TWO TO THREE WEEKS REED ELSEVIER LAUNCHED A 425 MILLION BID ON MAY 11 FOR OAG WHICH PUBLISHES US AIRLINES' SCHEDULES REED ELSEVIER ALREADY PUBLISHES EUROPEAN AIRLINE DATA IN ITS ABC WORLD AIRLINES GUIDE THE FINAL STAGES OF DUEDILIGENCE WORK WILL SHORTLY BE COMPLETED REED ELSEVIER SAID A FULL ANNOUNCEMENT WILL BE MADE ONCE CONTRACTS HAVE BEEN SIGNED 9308190140 930819 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON ROY C NASH 51 YEARS OLD WAS NAMED CHIEF FINANCIAL AND INFORMATION OFFICER AND MIKE READ 45 SENIOR VICE PRESIDENT FOR WORLDWIDE PLANNING AND OPERATIONS OF A NEW JOINT VENTURE WITH BRITISH TELECOMMUNICATIONS PLC TO PROVIDE GLOBAL TELECOMMUNICATIONS SERVICES MR NASH HAS BEEN MCI VICE PRESIDENT AND CONTROLLER MR READ HAS BEEN GLOBAL NETWORKS DIRECTOR FOR BRITISH TELECOM 9308190139 930819 WHO'S NEWS SCECORP SCECORP ROSEMEAD CALIF EDWARD R MULLER 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MISSION ENERGY CO UNIT OF THIS UTILITY HOLDING COMPANY MR MULLER CURRENTLY VICE PRESIDENT CHIEF FINANCIAL OFFICER GENERAL COUNSEL AND SECRETARY OF WHITTAKER CORP A LOS ANGELES AEROSPACE CONCERN WILL SUCCEED ALAN J FOHRER 42 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SCECORP WHO HAS SERVED AS CHIEF EXECUTIVE OF MISSION ON AN INTERIM BASIS SINCE APRIL 9308190138 930819 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI MARK LOWENBERG 41 YEARS OLD WAS NAMED PRESIDENT OF THE COMPANY'S BELEAGURED CASUAL CORNER DIVISION MR LOWENBERG FORMER PRESIDENT OF MERCHANDISING IN THE EAST FOR RH MACY & CO SUCCEEDS NOEL DAVIDSON 61 WHO RETIRED IN JUNE CASUAL CORNER WITH 721 STORES IS THE LARGEST DIVISION IN THE US SHOE WOMEN'SAPPAREL RETAILING GROUP ANALYSTS HAVE CRITICIZED THE DIVISION WHICH HAS TURNED IN POOR PERFORMANCE RECENTLY AS LACKING A CORE MARKETING CONCEPT 9308190137 930819 CREDIT MARKETS US LONG YIELD HITS NEW 16YEAR LOW OF 625 BUT OTHER TREASURY SECURITIES FAIL TO KEEP PACE BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BENCHMARK 30YEAR TREASURY BOND CONTINUED ITS EXTRAORDINARY RUN TO LOWER YIELDS YESTERDAY BUT THE REST OF THE TREASURY MARKET LAGGED BEHIND THE 30YEAR BOND'S YIELD DROPPED TO 625 FROM 631 ON TUESDAY THAT IS THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 99 29/32 THE 10YEAR NOTE'S YIELD DROPPED TO 567 FROM 571 BEFORE THIS SUMMER THE LAST TIME THE YIELD ON THE 10YEAR NOTE WAS THIS LOW WAS IN THE SPRING OF 1971 MUNICIPALITIES AND CORPORATIONS TOOK ADVANTAGE OF THE LOW YIELDS BY SELLING MORE THAN 35 BILLION OF NEW DEBT SECURITIES YESTERDAY MARKET WATCHERS STRESSED THAT THE NEW 625 30YEAR BOND SOLD LAST WEEK SEEMS TO BE IN A SEPARATE WORLD FROM THE REST OF THE SPECTRUM OF TREASURY ISSUES NO FRESH NEWS WAS BEHIND THE MARKET'S GAINS YESTERDAY DEALERS SAID INSTEAD THE IMPROVEMENT REFLECTED THE CONTINUING BULLISH TONE IN THE MARKET AND A FEW SPECIAL FACTORS OVERALL THE MARKET MAINTAINS AN UPBEAT TONE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS EVERYTHING IS PUSHING HIGHER CONSISTENT WITH THE MOST RECENT WAVE OF OPTIMISM THAT HAS PREVAILED INTERMEDIATE TREASURY SECURITIES WERE GIVEN A BOOST BY A RENEWED ROUND OF BUYING RELATED TO MUNICIPAL DEFEASANCE PROGRAMS IN A DEFEASANCE PLAN STATE AND LOCAL GOVERNMENTS ISSUE NEW SECURITIES TO REFUND OLDER HIGHERINTEREST DEBT BUT UNTIL THE OUTSTANDING SECURITIES CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUANCE ARE INVESTED IN TREASURYS SHORTTERM AND INTERMEDIATETERM SECURITIES WERE ALSO BOOSTED BY WIDESPREAD TALK THAT THE FEDERAL RESERVE WAS CONDUCTING UNANNOUNCED PURCHASES OF TREASURYS ON BEHALF OF A FOREIGN CENTRAL BANK TRADERS ADDED BUT THE MAIN ACTION TOOK PLACE IN THE LONG BOND WHICH MARKET PARTICIPANTS SAID HAS TAKEN ON A LIFE OF ITS OWN SPECULATIVE TRADERS SEEM TO BE DRIVING BOND YIELDS LOWER AS THEY SNAP UP BONDS AS PART OF COMPLEX TRADING BETS REPORTS OF SUBDUED INFLATION AND A SLUGGISH ECONOMIC RECOVERY HAVE FUELED THE RALLY IN RECENT WEEKS BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF FIXEDRATE INVESTMENTS IF THE ECONOMY REMAINS SLUGGISH BOND INVESTORS REASON INFLATION WILL REMAIN LOW MANY BOND INVESTORS ARE CONVINCED THAT THE HIGHER TAXES OF PRESIDENT CLINTON'S ECONOMIC PACKAGE AND THE COSTS OF REFORMING THE HEALTH CARE SYSTEM WILL FURTHER DEPRESS THE ECONOMY EUPHORIA IN THE BOND MARKET HAS CREATED A HERD MENTALITY SAID HELEN F PETERS HEAD OF TAXABLE FIXED INCOME AT COLONIAL MANAGEMENT ASSOCIATES INC A MUTUAL FUND FIRM INVESTORS SEE RATES DROPPING AND SEE NO REASON NOT TO BE INVOLVED IN THE RALLY SHE SAID BUT CORPORATIONS SEEM TO BE BETTING THAT RATES WON'T GO LOWER YESTERDAY AND TUESDAY ALONE CORPORATIONS RUSHED TO SELL MORE THAN 7 BILLION OF NEW DEBT PAPER IN ORDER TO LOCK IN TODAY'S LOW RATES BY ITSELF NATIONSBANK CORP OF CHARLOTTE NC HAS SOLD 1 BILLION OF NOTES THIS WEEK DEMAND FOR THE NOTES IN THE BANK'S TWO OFFERINGS WAS SO STRONG THAT THE BANK WAS ABLE TO INCREASE THEIR SIZE BY A TOTAL OF 150 MILLION BUT SOME ARE WORRIED THAT THE BOND MARKET MAY HAVE GONE TOO FAR TOO FAST JOSEPH DEANE WHO RUNS THE 21 BILLION SMITH BARNEY SHEARSON MANAGED MUNICIPALS BOND FUND SAID HE SOLD OFF 100 MILLION OF LONGTERM MUNICIPAL BONDS OVER THE PAST TWO DAYS WITH INTEREST RATES SO LOW MR DEANE SEES LITTLE ROOM FOR IMPROVEMENT AND WISHED TO UNLOAD LONGTERM SECURITIES WHICH ARE THE MOST VULNERABLE TO RISING INTEREST RATES WE'VE HAD A TREMENDOUS RALLY HE SAID BUT ADDED THAT THERE IS MUCH MORE DOWNSIDE THAN UPSIDE NOW THE 30YEAR TREASURY BOND IS ABSOLUTELY IN ITS OWN WORLD SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF THERE ARE CLEARLY FUNDAMENTAL REASONS TO BE BULLISH ON THE BOND SAY TRADERS BUT TRADING IN THE BOND HAS INCREASINGLY BEEN DRIVEN BY FACTORS UNRELATED TO THE ECONOMY ONE FACTOR IS THE TREASURY DEPARTMENT'S DECISION TO REDUCE THE AMOUNT OF 30YEAR BONDS IT SELLS EVERY YEAR AND TO SHIFT FROM QUARTERLY AUCTIONS TO SEMIANNUAL OFFERINGS AND AT THE SAME TIME MORE AND MORE PORTFOLIO MANAGERS HAVE BEEN SNAPPING UP LONG SECURITIES IN SEARCH OF HIGHER YIELDS ACCORDING TO MR KARYDAKIS OF FIRST CHICAGO THE NOTION OF A SCARCITY PREMIUM BECAUSE OF SUCH FACTORS IS BEHIND MUCH OF THE 625 BOND'S STELLAR RISE SPECULATIVE TRADERS MEANWHILE HAVE BEEN SCRAMBLING TO PLACE A VARIETY OF BETS ON THE IMPACT OF THE SCARCITY PREMIUM THAT RUSH HAS IN TURN ONLY EXAGGERATED THE DIFFERENCE BETWEEN THE 30YEAR BOND'S PERFORMANCE COMPARED TO THE REST OF THE MARKET AMONG THE MOST PREVALANT TRADES IN RECENT WEEKS HAVE BEEN BETS ON THE YIELD GAP WHERE TRADERS HAVE SET UP POSITIONS DESIGNED TO TAKE ADVANTAGE OF A NARROWING OF THE YIELD GAP BETWEEN THE 30YEAR BOND AND SHORTERTERM SECURITIES THOSE TRADES HAVE CENTERED MAINLY ON TRADERS BUYING BONDS AND SELLING TWOYEAR NOTES OR 10YEAR NOTES ANOTHER SIGNIFICANT CHANGE THAT IS REFLECTIVE OF THE PECULIAR CONDITIONS IN THE LONG BOND IS A WIDENING GAP BETWEEN THE YIELD ON THE 625 30YEAR BOND MATURING IN AUGUST 2023 AND THE YIELD ON THE BOND ISSUED BEFORE IT THE 7125 30YEAR BOND THAT MATURES IN FEBRUARY 2023 DURING WHENISSUED TRADING LAST WEEK THE NEW 30YEAR BOND YIELDED 007 PERCENTAGE POINT LESS THAN THE 7125 BOND BUT STRONG DEMAND FOR THE 625 ISSUE HAS WIDENED THE GAP TO 014 PERCENTAGE POINT THE CORPORATE MARKET SAW A FLURRY OF NEW ISSUANCE ALTHOUGH TRADERS SAID DEALS PRICED OFF THE RECORDLOW YIELDS OF THE NEW 30YEAR TREASURY BOND WERE RUNNING INTO TROUBLE IN SECONDARY TRADING SLIGHTLY MORE THAN 2 BILLION OF CORPORATE DEBT WAS PRICED YESTERDAY WITH A NUMBER OF FIRSTTIME ISSUERS HITTING THE MARKET THERE WAS ALSO OVER 1 BILLION OF AGENCY PAPER PRICED THE SECONDARY MARKET FOR INVESTMENTGRADE BONDS SAW MODEST ACTIVITY AS PRICES FOLLOWED TREASURYS HIGHER A NUMBER OF THE RECENTLY ISSUED DEALS BEGAN TRADING YESTERDAY AND THOSE PRICED AT YIELD SPREADS OVER THE CURRENT ISSUE OF THE 30YEAR BOND HAD TROUBLES INVESTORS CONTINUE TO DEMAND THAT BONDS BE PRICED AT SPREADS OVER THE OLD 30YEAR TREASURY WHICH IS YIELDING 64 THAT IS ABOUT 014 PERCENTAGE POINT HIGHER THAN THE CURRENT 30YEAR TREASURY BOND WHICH WAS AUCTIONED BY THE TREASURY LAST WEEK AS A RESULT THE BONDS PRICED OFF THE NEW 30YEAR TREASURY HAVE TRADED DOWN IN THE MARKET AND YIELD SPREADS HAVE WIDENED TRADERS SAID FOR EXAMPLE SCOTT PAPER CO PRICED 30YEAR DEBT LAST WEEK AT 089 PERCENTAGE POINT OVER THE NEWLY ISSUED 30YEAR TREASURY THE PAPER TRADED YESTERDAY AT A SPREAD OF 098 PERCENTAGE POINT TO YIELD 728 ONE TRADER SAID SYNDICATE DESKS SELLING CORPORATE BONDS ARE LIKELY TO REMEDY THE SITUATION BY PRICING NEW ISSUES AT SPREADS OVER THE OLDER 30YEAR BOND AS SOON AS NEXT WEEK SAY ANALYSTS IN THE JUNK BOND MARKET SECONDARY TRADING WAS RELATIVELY QUIET TRANSTEXAS GAS CORP'S 500 MILLION OFFERING OF SENIOR SECURED NOTES SOLD LATE TUESDAY PERFORMED WELL IN THE SECONDARY MARKET THE NOTES PRICED TUESDAY AT PAR TO YIELD 105 TRADED UP TWO POINTS TO 102 TO YIELD 1009 SAID ONE TRADER MOST OF THE MUNICIPAL BOND MARKET ACTIVITY YESTERDAY TOOK PLACE IN THE NEWISSUE SECTOR WHERE MORE THAN 15 BILLION OF SECURITIES WERE PRICED THE NEW SUPPLY WAS DOMINATED BY THE REFUNDING BONDS THAT HAVE BEEN IN ABUNDANCE ALL YEAR DUE TO THE CONTINUING DECLINE IN US INTEREST RATES ALTHOUGH MUNICIPAL SPECIALISTS HAVE PREDICTED FOR SOME TIME THAT THE FLOW OF REFUNDING BONDS WILL EVENTUALLY BEGIN TO EBB A SIGNIFICANT SLOWDOWN HAS YET TO BE SEEN YESTERDAY'S OFFERINGS INCLUDED MASSACHUSETTS' 1993 SERIES C GENERAL OBLIGATION REFUNDING BONDS WHICH WERE SOLD THROUGH A BEAR STEARNS & CO GROUP DEMAND FOR THE BONDS WAS SO STRONG THAT AFTER THE ORIGINAL PRICING THE UNDERWRITING GROUP WAS ABLE TO INCREASE THE SIZE OF THE OFFERING TO 8415 MILLION FROM 6822 MILLION AND LOWER A NUMBER OF YIELDS FROM 002 TO 005 PERCENTAGE POINT FOLLOWING THAT REPRICING YIELDS RANGE FROM 410 IN 1998 TO 530 IN 2008 THE INITIAL SCALE OF YIELDS WAS 415 IN 1998 TO 530 IN 2008 IN SECONDARY DEALINGS PRICES WERE GENERALLY UNCHANGED TO 3/8 POINT HIGHER AT THE CLOSE THE SOUTH BROWARD HOSPITAL DISTRICT OF FLORIDA'S 5375 HOSPITAL REVENUE REFUNDING BONDS OF 2013 CLOSED 1/8 POINT FIRMER AT 98 3/4 TO YIELD 546 PRICES OF CURRENTCOUPON SECURITIES ROSE ABOUT 1/8 POINT TO HIT LEVELS ABOVE PAR AS INVESTORS FAILED TO SHOW INTEREST IN ALMOST EVERY OTHER ASPECT OF THE MORTGAGEBACKED MARKET THE STRENGTH OF CURRENT COUPONS MORTGAGES WITH 65 COUPONS LARGELY RESULTS FROM THE LACK OF SECURITIES BACKED BY NEWLY ORIGINATED LOANS IN THE MARKET WITH RATES CONTINUING TO FALL MORTGAGE BANKERS HAVEN'T HAD AN INCENTIVE TO SELL THEIR LOANS CRIMPING SUPPLY DEMAND FOR CURRENT COUPONS COMES FROM DEALERS WHO NEED THE COLLATERAL TO BACK REAL ESTATE MORTGAGE INVESTMENT CONDUITS IN THE SECONDARY MARKET GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR SEPTEMBER DELIVERY ENDED 4/32 HIGHER AT 100 6/32 FEDERAL HOME LOAN MORTGAGE CORP 65 ISSUES ENDED 5/32 HIGHER AT 100 8/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 5/32 HIGHER AT 100 3/32 BUT EVERY OTHER PART OF THE MARKET REMAINS UNATTRACTIVE AS THE YIELD CURVE FLATTENS AND PREPAYMENT FEARS BECOME MORE INTENSE PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID THERE WAS SOME ACTION IN THE PRIMARY MARKET WITH FREDDIE MAC ANNOUNCING INCREASES TO TWO ISSUES TOTALING 340 MILLION THE AGENCY ALSO ANNOUNCED A NEW 3049 MILLION REMIC SERIES 1589 BACKED BY 625 30YEAR RELOCATION LOANS JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9308190135 930819 WHO'S NEWS QUANTUM HEALTH RESOURCES INC QUANTUM HEALTH RESOURCES INC ORANGE CALIF ROBERT J ERRA 50 YEARS OLD WAS ELECTED A DIRECTOR SUCCEEDING JOHN PAPPAJOHN WHO DIDN'T SEEK REELECTION LAST YEAR MR ERRA IS SENIOR VICE PRESIDENT DIRECTOR CLINIC OPERATIONS SCRIPPS CLINIC & RESEARCH FOUNDATION QUANTUM PROVIDES SERVICES TO INDIVIDUALS AFFECTED BY CERTAIN CHRONIC DISEASES 9308190134 930819 INTERNATIONAL CREDIT SUISSE SAYS PROFIT ROSE 67 IN THE FIRST HALF BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH CONTINUING A WAVE OF STRONG EARNINGS REPORTS FROM SWITZERLAND'S LEADING BANKS CREDIT SUISSE SAID ITS GROSS PROFIT SURGED 67 TO 24 BILLION SWISS FRANCS 16 BILLION IN THE FIRST HALF THE UNIT OF CS HOLDING AG PREDICTED GROSS PROFIT BEFORE TAXES AND PROVISIONS FOR BAD DEBTS WILL REMAIN HIGH IN THE SECOND HALF THANKS TO A STRONG POSITION IN ALL MAJOR FINANCIAL MARKETS IT SAID 34 OF FIRSTHALF GROSS PROFIT WAS GENERATED ABROAD WE ANTICIPATE GOOD PROFITS FOR 1993 THE BANK SAID BUT IT ADDED THE DIFFICULT BUSINESS CLIMATE AND CONTINUING STRUCTURAL ADJUSTMENTS NOTABLY IN THE SWISS ECONOMY MEAN THAT SUBSTANTIAL PROVISIONS WERE AGAIN NECESSARY IN THE HALF NET INCOME WILL BE ANNOUNCED THIS MONTH A SPOKESMAN SAID THE BANK'S STRONG EARNINGS GROWTH WAS NO SURPRISE AFTER UNION BANK OF SWITZERLAND DAZZLED ANALYSTS LAST WEEK WITH THE ANNOUNCEMENT OF AN 89 JUMP IN AFTERTAX PROFIT TO 129 BILLION FRANCS FOR THE FIRST HALF DESPITE AN INCREASE OF MORE THAN ONE BILLION FRANCS IN PROVISIONS FOR COUNTRY RISK AND DOUBTFUL DEBTS SWISS BANK CORP THE THIRD OF THE COUNTRY'S BIG THREE BANKS IS EXPECTED TO FOLLOW THE TREND WHEN IT REPORTS FIRSTHALF RESULTS ON SEPT 2 SWITZERLAND'S UNIVERSAL BANKS WHICH ENGAGE IN ALL SECTORS OF COMMERCIAL AND PRIVATE BANKING SAY THEY ARE BENEFITING FROM DYNAMIC SECURITIES MARKETS IN MANY COUNTRIES VOLATILE FOREIGNEXCHANGE TRADING IN THE WAKE OF EUROPE'S CURRENCY TURMOIL AND LOWER MONEYMARKET RATES THE DECISION BY CREDIT SUISSE NOT TO ANNOUNCE A NET INCOME FIGURE FOR THE HALF DISAPPOINTED MANY ANALYSTS THE GROSSPROFIT RESULT IS VERY GOOD SAID LOMBARD ODIER & CIE BANK ANALYST JEANMAX VILLARS BUT WE WOULD LIKE TO KNOW WHAT COMES AFTER PROVISIONS AND TAXES IN WEDNESDAY'S EARNINGS REPORT CREDIT SUISSE TOOK PAINS TO POINT OUT THAT ITS MARRIAGE WITH SWISS VOLKSBANK IS A HAPPY ONE CS HOLDING TOOK OVER SWITZERLAND'S FOURTHLARGEST BANK IN JANUARY THE HALFYEARLY STATEMENT SEEMS TO CONFIRM THE TWO BANKS ARE WORKING WELL TOGETHER SAID PICTET & CIE BANK ANALYST DANIEL KOENIG IN THE FIRST HALF CREDIT SUISSE'S ASSETS INCLUDING VOLKSBANK ROSE 33 TO 229 BILLION FRANCS FROM 173 BILLION FRANCS LENDING GREW 29 TO 1293 BILLION FRANCS FROM 999 BILLION FRANCS CUSTOMER DEPOSITS GAINED 34 TO 1525 BILLION FRANCS FROM 1138 BILLION FRANCS 9308190133 930819 FINANCING BUSINESS AMERICAN ANNUITY GROUP INC AMERICAN ANNUITY GROUP INC SAID IT COMPLETED THE SALE OF 100 MILLION PRINCIPAL AMOUNT OF 9 1/2 SENIOR NOTES DUE 2001 THE CINCINNATI COMPANY USED THE PROCEEDS TO PAY OFF A BANK TERM LOAN OF 95 MILLION AMERICAN ANNUITY SELLS TAXDEFERRED ANNUITIES TO TEACHERS AND OTHER EMPLOYEES OF NONPROFIT INSTITUTIONS 9308190132 930819 LETTERS TO THE EDITOR DUPONT ANSWERS FUNGICIDE CHARGES YOUR JUNE 30 ARTICLE PAINTS A DAMAGING AND MISLEADING PICTURE OF DUPONT AND ITS PRODUCT BENLATE DF FUNGICIDE THE MATTERS COVERED IN THE ARTICLE STRETCH OVER A 10YEAR PERIOD INVOLVING DUPONT FACILITIES IN THE US AND EUROPE IN EACH INSTANCE CITED THE JUDGMENTS AND THE OPINIONS OFFERED REFLECT ONLY THE THINKING AT THE TIME CERTAINLY NOT OUR CURRENT UNDERSTANDING OF WHAT HAPPENED THIS IS A CRUCIAL POINT BECAUSE INACCURACIES ORIGINALLY PRESENTED AS TRUTH IN INTERNAL DOCUMENTS WERE LATER FOUND TO BE ERRONEOUS THE ARTICLE MADE SPECIFIC ACCUSATIONS ABOUT 1983 GROWER COMPLAINTS IN BELGIUM THE STORY REPORTED THAT PLANTS WERE DAMAGED BY BENLATE IN HOT HUMID CONDITIONS AND THAT DUPONT VERIFIED THIS BUT DID NOTHING TO PROTECT CUSTOMERS IN TRUTH THE PLANTS AFFECTED WERE OF ONE SPECIES OF RUBBER PLANT WHILE OTHERS IN THE SAME GREENHOUSE WERE UNAFFECTED THE PLANTS WERE WETTED DOWN AND KEPT AT 65 DEGREES FAHRENHEIT IN SEALED GREENHOUSES THE CONDITIONS WERE VERY UNLIKE FLORIDA'S GROWING CONDITIONS THE STORY ALSO ALLEGES THAT DUPONT KNEW OF AND IGNORED THE FACT THAT BENLATE WAS CONTAMINATED BY SULFONYLUREA HERBICIDES IN 1987 THAT WAS ATTRIBUTED TO AN INTERNAL MEMO WRITTEN IN 1991 BY MILT WARDEH A DUPONT EMPLOYEE MR WARDEH WHEN ASKED ABOUT THE MEMO SAID HE HAD MISTAKENLY REFERRED TO SULFONYLUREAS WHEN HE MEANT TO REFER TO ATRAZINE CONTAMINATION WE DID EXPERIENCE AND REPORTED ATRAZINE CONTAMINATION IN 1989 AND 1991 THE ARTICLE ALSO REFERS TO ANOTHER DOCUMENT IN THE CASE AND SUGGESTS THAT DUPONT WOULD NOT ACKNOWLEDGE A CAUSE OF THE CROP DAMAGE EVEN IF WE KNEW THAT IS PATENTLY UNTRUE THE INTENT OF THE MEMO WRITTEN BY OUR OUTSIDE COUNSEL WAS TO DEVELOP A POSITION IN REGARD TO THE HANDLING OF INSURANCE COVERAGE IT HAD NOTHING TO DO WITH CROP CLAIMS BY CUSTOMERS FINALLY THE STORY ALLEGES THAT DUPONT WITHHELD THE FACT THAT FEES WERE PAID TO THE SIX SCIENTISTS WHO CONCURRED WITH DUPONT'S FINDINGS THAT BENLATE DID NOT CAUSE THE DAMAGE CLAIMED IN FLORIDA AND ELSEWHERE IN 1990 AND 1991 WE ACKNOWLEDGED PUBLICLY ALL FEES PAID WHEN WE ANNOUNCED IN NOVEMBER 1992 THE RESULTS OF OUR 12 MILLION RESEARCH INTO THE CLAIMS OF BENLATE DAMAGE WE HAVE WAITED UNTIL NOW TO RESPOND TO THIS ARTICLE BECAUSE WE WANTED TO HAVE A TRIAL UNDER WAY BEFORE PUBLICLY ADDRESSING ACCUSATIONS 9308190131 930819 INTERNATIONAL JAPANESE STEEL OUTPUT RISES TOKYO JAPAN'S STEEL PRODUCTION WAS UP IN JULY BUT THE OUTLOOK HAS WORSENED THE JAPAN IRON AND STEEL FEDERATION SAID OUTPUT TOTALED 8470000 METRIC TONS UP 38 FROM THE YEAREARLIER MONTH A METRIC TON IS 22046 POUNDS AS HAS BEEN THE CASE IN RECENT MONTHS JAPAN'S STEEL PRODUCTION INCREASED MAINLY BECAUSE OF DEMAND FROM CHINA A FEDERATION SPOKESMAN SAID BUT AS THE EXPANSION OF CHINA'S ECONOMY IS SHOWING SIGNS OF SLOWING JAPANESE STEELMAKERS PREDICT THAT DEMAND FROM CHINA WILL DECLINE DURING THE SECOND HALF OF THIS FISCAL YEAR HE SAID THE HALF BEGINS OCT 1 MEANWHILE DOMESTIC DEMAND FOR STEEL IS WEAKENING FURTHER AS THE OUTLOOK FOR SUCH USER INDUSTRIES AS CAR MAKERS AND CONSTRUCTION COMPANIES HAS BEEN WORSENING HE SAID 9308190129 930819 BT SHIPPING UNIT TO PAY IN SPILL NEW YORK NAUTILUS MOTOR TANKER CO OF LONDON A SUBSIDIARY OF BT SHIPPING LTD OF BERMUDA AGREED TO PAY 4 MILLION IN NATURAL RESOURCE DAMAGES AND COSTS TO NEW YORK NEW JERSEY AND THE US TO SETTLE A DISPUTE OVER AN OIL SPILL THE TANKER BT NAUTILUS SPILLED MORE THAN 250000 GALLONS OF OIL INTO NEW YORK HARBOR ON JUNE 7 1990 FORCING THE CLOSURE OF THE KILL VAN KULL TO SHIPPING FOR THREE DAYS THE OIL SPILL DAMAGED WETLANDS AND HARMED SUCH ANIMALS AS THE ENDANGERED PIPING PLOVERS IN NEW YORK AND NEW JERSEY OFFICIALS FROM BOTH STATES SAID ACCORDING TO THE NEW YORK ATTORNEY GENERAL'S OFFICE NAUTILUS MOTOR TANKER INITIALLY PAID ABOUT 20 MILLION TO CLEAN UP THE SPILL 9308190127 930819 UNDERWRITERS BUY ALAMCO SHARES CLARKSBURG WVA ALAMCO INC SAID UNDERWRITERS PURCHASED AN ADDITIONAL 405000 SHARES OF ALAMCO COMMON STOCK AT 550 EACH TO COVER OVERALLOTMENTS THE COMPANY SAID IT SOLD 71404 SHARES AND 333596 SHARES WERE SOLD BY PNC BANK NA A UNIT OF PNC BANK CORP PITTSBURGH PRINCIPAL/EPPLER GUERIN & TURNER INC DALLAS TEXAS IS THE MANAGING UNDERWRITER ALAMCO IS AN INDEPENDENT PRODUCER OF GAS AND OIL IN THE APPALACHIAN BASIN 9308190126 930819 WHO'S NEWS COMPUTER SCIENCES CORP COMPUTER SCIENCES CORP EL SEGUNDO CALIF JAMES A CHAMPY WAS NAMED PRESIDENT OF THE COMMERCIAL CONSULTING GROUP BASED IN CAMBRIDGE MASS AND WAS ELECTED A VICE PRESIDENT OF THE PARENT AN INFORMATION TECHNOLOGY SERVICES CONCERN HE SUCCEEDS PAUL J CROWLEY 62 YEARS OLD WHO RETIRED THIS YEAR MR CHAMPY 51 WAS SENIOR VICE PRESIDENT OF THE GROUP AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CSC INDEX THE COMPANY'S MANAGEMENT CONSULTING AND BUSINESS REENGINEERING ARM DAVID G ROBINSON 47YEAROLD PRESIDENT OF CSC INDEX ASSUMES EXECUTIVE RESPONSIBILITY FOR CSC INDEX THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER WERE ELIMINATED 9308190125 930819 BUSINESS BRIEF NEDLLOYD GROEP NV NET LOSS OF 609 MILLION IS REPORTED FOR FIRST HALF DUTCH TRANSPORT GROUP NEDLLOYD GROEP NV SWUNG TO A NET LOSS OF 116 MILLION GUILDERS 609 MILLION IN THE FIRST HALF FROM A PROFIT OF ONE MILLION GUILDERS A YEAR EARLIER REVENUE WAS DOWN 39 TO 319 BILLION GUILDERS FROM 332 BILLION GUILDERS THE ROTTERDAM NETHERLANDS COMPANY ALSO FORECAST IT WILL POST A LOSS FOR THE FULL YEAR THOUGH A CLEAR IMPROVEMENT IN FINANCIAL RESULTS OVERALL IS EXPECTED NEDLLOYD HAD A LOSS OF 58 MILLION GUILDERS IN 1992 ON 67 BILLION GUILDERS OF REVENUE THE NET LOSS OF 116 MILLION GUILDERS IS VERY UNSATISFYING NEDLLOYD SAID A NEDLLOYD SPOKESMAN SAID THE BIG PROBLEM FOR THE COMPANY WAS ITS SHIPPING BUSINESS WHICH WAS UNDERMINED BY INTENSE DOWNWARD PRESSURE ON TARIFFS INDEED THE SHIPPING SECTOR LOST 57 MILLION GUILDERS IN THE FIRST QUARTER MAINLY DUE TO WEAKNESS IN JANUARY AND FEBRUARY 9308190124 930819 GENERAL TIRE CANCELS NORTH CAROLINA PROJECT BACKED BY EXOFFICIAL AKRON OHIO GENERAL TIRE INC KILLED PLANS TO BUILD AN OPERATIONS AND TECHNICAL CENTER IN CHARLOTTE NC A DAY AFTER ITS KEY SUPPORTER RESIGNED IN A DISPUTE WITH THE CHIEF EXECUTIVE OFFICER YESTERDAY'S CANCELLATION FOLLOWING TWO RESIGNATIONS THE PREVIOUS DAY WAS A FURTHER SIGN OF TURMOIL AT GENERAL A UNIT OF GERMANY'S CONTINENTAL AG THE COMPANY HAD POSTED LOSSES IN 1991 AND 1992 AMID FIERCE COMPETITION IN THE WORLDWIDE TIRE MARKET IN A STATEMENT GENERAL SAID IT CANCELED THE 12 MILLION PROJECT BECAUSE OF THE UNCERTAIN OUTLOOK FOR THE DOMESTIC AND EUROPEAN ECONOMIES AS WELL AS REQUIREMENTS FOR CONTINUING INVESTMENTS IN OUR OPERATIONS BUT EW BUD KISSEL WHO RESIGNED TUESDAY AS EXECUTIVE VICE PRESIDENT OF GENERAL'S PASSENGER AND LIGHT TRUCK DIVISION SAID THE COMPANY'S DECISION WAS A DIRECT RESULT OF HIS DEPARTURE I HAD CHAMPIONED THAT AND TOTALLY SUPPORTED THAT MR KISSEL SAID IN AN INTERVIEW THE IDEA BEHIND MOVING 200 TECHNICAL AND SUPPORT PERSONNEL TO CHARLOTTE WHERE GENERAL HAS A MANUFACTURING PLANT FROM ITS HEADQUARTERS IN AKRON WAS TO ACHIEVE WHAT MR KISSEL CALLED TOTAL SYNERGY BETWEEN MANUFACTURING AND TECHNICAL WORKERS MR KISSEL ALSO SAID HE AND ALAN OCKENE CHIEF EXECUTIVE OFFICER DISAGREED OVER ISSUES INVOLVING DECENTRALIZATION AND CAPITAL SPENDING WHICH MR KISSEL SAID IS DIFFICULT TO COME BY RIGHT NOW A GENERAL SPOKESMAN SAID YESTERDAY'S ANNOUNCEMENT AND MR KISSEL'S RESIGNATION HAD NO CONNECTION ALEXANDER J MACLEAN SENIOR VICE PRESIDENT OF SALES AND MARKETING ALSO RESIGNED TUESDAY THE COMPANY THEN SAID BOTH MEN RESIGNED OVER POLICY DIFFERENCES MR MACLEAN HAS BEEN UNAVAILABLE FOR COMMENT GENERAL STILL IS GOING FORWARD WITH PLANS TO BUILD A 7 MILLION TECHNICAL CENTER FOR HIGHWAY TRUCK TIRES IN MT VERNON ILL GENERAL EXPECTS TO BREAK EVEN THIS YEAR 9308190123 930819 CORPORATE FOCUS DIGITAL EQUIPMENT IS LOOKING TO TAP INTO NEW GROWTH ANALYSTS SEE TURNAROUND BUT FINDING REVENUE COULD BE A CHALLENGE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MAYNARD MASS DIGITAL EQUIPMENT CORP PROVED IT CAN BECOME PROFITABLE AGAIN BY SLASHING COSTS BUT IGNITING NEW REVENUE GROWTH WILL BE EVEN HARDER DIGITAL'S 113 MILLION PROFIT FOR THE FOURTH QUARTER ENDED JULY 3 ITS FIRST IN TWO YEARS AROSE FROM DRACONIAN CUTTING IN WHICH THE COMPANY FIRED ITS FOUNDER SHED ONE IN FIVE JOBS SHUTTERED FACTORIES AND REPLACED MUCH OF TOP MANAGEMENT YET ANALYSTS SEE A ROLLERCOASTER COMEBACK FOR DIGITAL INCLUDING A LOSS THIS QUARTER AS THE RECESSION SAPS RESULTS IN EUROPE THE SOURCE OF HALF THE COMPANY'S REVENUE FOR THE LONG HAUL THE NO 2 US COMPUTER MAKER IS COUNTING ON A REORGANIZED SALES FORCE MOTIVATED BY NEW INCENTIVES TO PUSH MORE PRODUCTS OUT THE DOOR IT'S ALSO BROADENING ITS SERVICES BUSINESS INTO SUCH AREAS AS ADVISING COMPANIES ON HOW TO BUILD COMPUTER NETWORKS EVEN IF DIGITAL PRODUCTS AREN'T INVOLVED AND AFTER A LONG DEPENDENCY ON ITS VAX MINICOMPUTERS WITH PROPRIETARY SOFTWARE DIGITAL HOPES THAT NEW CHIP TECHNOLOGY WILL HOLD ITS CORPORATE CUSTOMERS WHILE GIVING IT AN EDGE IN FASTGROWING PERSONAL COMPUTER WORKSTATION AND NETWORKING BUSINESSES FINDING NEW REVENUE HOWEVER COULD BE A BIGGER CHALLENGE COMPETITION IS MORE INTENSE THAN EVER AS COMPUTERS BECOME MORE OF A COMMODITY AND PROFIT MARGINS SHRIVEL DIGITAL'S CHALLENGE IS TO BUILD REVENUE IN NEW AREAS FASTER THAN MINICOMPUTERS DECLINE WHILE IT HAS INSTALLED A HUGE BASE OF THESE MACHINES PRICED FROM 10000 TO AS MUCH AS 1 MILLION MOST OF THE DEMAND TODAY IS FOR SMALLER SYSTEMS ANOTHER CHALLENGE IS TO RECHARGE DIGITAL'S DEMORALIZED SALES FORCE NOW UNDER EDWARD E LUCENTE A FORMER TOP IBM EXECUTIVE WHO IS SALES AND MARKETING CHIEF WE'VE STOPPED THE BLEEDING SAYS ROBERT B PALMER WHO RAN DIGITAL'S CHIPMAKING OPERATION BEFORE BEING THRUST INTO THE CHIEF EXECUTIVE OFFICER'S JOB LAST FALL BUT THAT'S NOT A TURNAROUND WE NEED TO SHOW A FEW QUARTERS OF CONSISTENT PROFITABLE GROWTH MR PALMER ADDS THAT WE'RE DONE WITH THE MAJOR DOWNSIZING IF SALES HOLD STEADY INDEED DIGITAL SEEMS BETTER OFF NOW THAN THE INDUSTRY'S WOUNDED LEADER INTERNATIONAL BUSINESS MACHINES CORP WHICH HAS ANNOUNCED FURTHER DEEP CUTS DIGITAL'S STRATEGY REACHES BEYOND COST CUTTING AND IS TIED TO ALPHA A NEW MICROCHIP DESIGN THAT ANALYSTS SAY IS THE MOST POWERFUL IN THE INDUSTRY IN MY 30 YEARS AT IBM WE HAD TRAILING TECHNOLOGY AND PRODUCTS AND WE MASKED IT WITH A WORLDCLASS SALES FORCE SAYS MR LUCENTE NOW I HAVE WORLDCLASS TECHNOLOGY TO SELL MR LUCENTE IS TRYING TO FIX THE PROBLEMS OF THE SALES FORCE BY REORGANIZING IT INTO GROUPS THAT SELL TO SPECIFIC INDUSTRIES SUCH AS HEALTH CARE AND BANKING AN INCENTIVE PAY STRUCTURE TOOK EFFECT ON JULY 4 DIGITAL HAD BEEN THE ONLY MAJOR COMPUTER MAKER THAT DIDN'T PAY ITS SALESPEOPLE COMMISSIONS SHORTLY AFTER MR LUCENTE WAS HIRED IN APRIL HIS NEW BOSS MR PALMER SAID THE SALES FORCE WAS PROBABLY THE LEAST PRODUCTIVE IN THE WORLD IN THE FIELD WHERE THE PAIN OF LAYOFFS IS STILL FRESH SOME DIGITAL PEOPLE SAY MIDLEVEL MANAGERS WERE SPARED WHILE FRONTLINE WORKERS WERE AXED MR LUCENTE ACKNOWLEDGES THAT THERE ARE STILL TOO MANY MANAGERS INDEED ANALYSTS THINK MR PALMER WILL KEEP CUTTING THE PAYROLL WHICH STOOD AT 94200 ON JULY 3 THEY'LL WORK IT DOWN TO 90000 BY DECEMBER SAYS BARRY F WILLMAN AN ANALYST AT SANFORD C BERNSTEIN & CO ONCE COSTS ARE UNDER CONTROL HOWEVER DIGITAL HAS SEVERAL PROSPECTS FOR REVENUE GROWTH ITS SERVICE BUSINESS INCLUDING NETWORK DESIGN AND MAINTENANCE HAS EXPANDED SHARPLY AND NOW ACCOUNTS FOR NEARLY HALF OF REVENUE PERSONAL COMPUTER SALES HAVE JUMPED TO ALMOST 900 MILLION LAST YEAR FROM NEXT TO NOTHING TWO YEARS AGO WHILE SALES OF HIGHCAPACITY DISK DRIVES HAVE SURGED AS WELL AND DIGITAL CLAIMS THE MOST POWERFUL COMPUTER WORKSTATIONS AND SERVERS ON THE MARKET THANKS TO THE ALPHA CHIP PERSONAL COMPUTERS WHICH DIGITAL IGNORED FOR YEARS ARE NOW ITS FASTESTGROWING PRODUCTS MARKET RESEARCHER COMPUTER INTELLIGENCE PUTS DIGITAL AT NO 7 IN PERSONAL COMPUTERS AHEAD OF BETTER KNOWN MAKERS LIKE ZENITH DATA SYSTEMS AND JUST BEHIND AST RESEARCH CORP DIGITAL EXECUTIVES SAY PERSONALCOMPUTER SALES IN FISCAL 1994 SHOULD DOUBLE UP TO NOW DIGITAL HAS BEEN NEARLY INVISIBLE IN PERSONAL COMPUTERS BECAUSE MOST SALES ARE DIRECT BY MAIL THROUGH A TOLLFREE NUMBER AND ITS CUSTOMERS ARE MOSTLY CORPORATE BUYERS WHO ALREADY OWN BIGGER DIGITAL COMPUTERS TO BROADEN SALES DIGITAL HAS STRUCK AGREEMENTS WITH MICROAGE INC AND OTHER DISTRIBUTORS BUT IT IS STILL AN UNPROFITABLE BUSINESS AS PERSONALCOMPUTER PRICING IS INTENSELY COMPETITIVE DIGITAL HAS SO FAR KEPT PACE WITH EVERY BRUISING MARKDOWN ANALYSTS SAY AND THE COMPANY IS ABOUT TO SPEND MORE THAN 50 MILLION ON A BIG PERSONALCOMPUTER ADVERTISING BLITZ ACCORDING TO INSIDERS ENRICO PESATORI CHIEF OF DIGITAL'S PERSONALCOMPUTER UNIT SAYS IT SHOULD BREAK EVEN THIS YEAR AS VOLUME CLIMBS LOWERING UNIT COSTS BY CONTRAST DATA STORAGE DISK DRIVES AND COMPONENTS IS MAKING MONEY STORAGE IS A SLEEPER AN UNEXPECTED JEWEL SAYS SHAO WANG A SMITH BARNEY ANALYST THE UNIT'S MANAGER FORMER XEROX EXECUTIVE CHARLES F CHRIST IS CREDITED BY ANALYSTS WITH TURNING AROUND THE BUSINESS AND AIMING BEYOND CAPTIVE DIGITAL MARKETS TO SELL TO OTHER COMPUTER MAKERS THESE SALES ROSE FROM ZERO TWO YEARS AGO TO ABOUT 20 OF THE UNIT'S TOTAL SALES OF 1 BILLION LAST YEAR IN WORKSTATIONS POWERFUL DESKTOP MACHINES USED BY ENGINEERS AND SCIENTISTS DIGITAL STILL LAGS IN THIRD PLACE BEHIND HEWLETTPACKARD CO AND SUN MICROSYSTEMS INC YET ANALYSTS SAY IT HAS A CHANCE TO RECAPTURE LOST GROUND WITH THE ALPHA DESIGN WHICH WAS UNVEILED LAST YEAR AND IS INTENDED TO POWER DIGITAL'S COMPUTERS FOR A DECADE WITH ITS ALPHAEQUIPPED WORKSTATIONS THEY DON'T HAVE TO APOLOGIZE ANYMORE THEY'RE COMING TO THE TABLE WITH STRONG PRODUCTS AT GREAT PRICES SAYS MR WILLMAN THE ANALYST REGAINING MOMENTUM IN DESKTOPS BOTH PERSONAL COMPUTERS AND WORKSTATIONS IS ABSOLUTELY CRITICAL TO ANY RECOVERY HE ADDS AS FOR DIGITAL'S LARGER ALPHABASED COMPUTERS SALES HAVE BEEN SLOW SO FAR SOME OWNERS OF OLDER MODELS WITH THE VAX OPERATING SYSTEM HAVE BEEN RELUCTANT TO MOVE TO THE NEW LINE BECAUSE INDUSTRIALSTRENGTH OPERATING SOFTWARE FOR ALPHA WON'T BE AVAILABLE UNTIL NEXT YEAR WE'VE BEEN HAPPY WITH THE VAX AND WE'RE INTERESTED IN ALPHA BUT WE'LL LOOK AT EVERYTHING OUT THERE BEFORE WE BUY NEXT YEAR SAYS PEGGY KAYE SYSTEMS MANAGER FOR A UNIT OF U S WEST INC THE REGIONAL TELEPHONE COMPANY STILL FOR MANY ANALYSTS A TURNAROUND IS IN VIEW BOB PALMER SAVED A SINKING SHIP SAYS JAY STEVENS OF DEAN WITTER REYNOLDS INC NOW HE'S GOT TO GET IT SAILING AGAIN 9308190122 930819 TELECOMMUNICATIONS AT&T RIVALS FACE OFF IN WIRELESS WARS PLAYERS BOAST DEEP POCKETS TECHNOLOGY BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL GET READY FOR THE WIRELESS WARS AS AMERICAN TELEPHONE & TELEGRAPH CO AND MCCAW CELLULAR COMMUNICATIONS CO JOIN FORCES THEY FACE DETERMINED WELLFINANCED COMPETITION AND TECHNICAL HURDLES TOO IN TOMORROW'S WIRELESS WORLD WHERE VOICE AND DATA WILL TRAVEL THROUGH THE AIR UNFETTERED BY TELEPHONE LINES AT&TMCCAW AIMS TO POSITION ITSELF AS A SLEEK COMBATANT OFFERING EVERYTHING FROM EASY BILLING FOR LONGDISTANCE AND CELLULAR SERVICE TO PHONES FOR MAKING THE CALLS BUT A DIVERSE FORCE OF EQUALLY REFINED RIVALS IS POISED TO PUT THE NEW TEAM ON HOLD THEY WILL BE PITCHING COMPETITIVE SERVICES AND IN SOME CASES POSSIBLY BETTER TECHNOLOGY FOR MAKING PHONE CALLS AND SENDING DATA AT&TMCCAW ABSOLUTELY FACES BIG COMPETITION SAYS BERGE AYVAZIAN A SENIOR ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM AT&T'S CHALLENGE HE SAYS WILL BE TO EXPLOIT ITS ABILITY TO OFFER ONESTOP SHOPPING FOR NATIONWIDE COORDINATED WIRELESS SERVICE AT&T HAS AN ADVANTAGE BY NOT HAVING TO DEAL WITH A NUMBER OF COMPANIES WITH COMPETING INTERESTS JOINED INTO ONE CONSORTIUM MR AYVAZIAN SAYS THE TRICK FOR AT&TMCCAW WILL BE TO KEEP THE SEVEN GIANT REGIONAL BELL COMPANIES GTE CORP AND OTHER SERVICE RIVALS OFF BALANCE NOT AN EASY FEAT THE BELL COMPANIES AND OTHERS MAKE DIRE PREDICTIONS ABOUT THE FORMATION OF A NEW AT&T MONOPOLY CALLING IT A NEWFANGLED WIRELESS BELL SYSTEM BUT THEIR LOCAL CELLULAR PHONE OPERATIONS LONG HAVE BEEN TOUGH RIVALS OF MCCAWOWNED SERVICES AT&TMCCAW WILL NEED TO COORDINATE ITS MARKETING AND KEEP ITS SALES PITCH SIMPLE AGAINST THE LOCAL PHONE MONOPOLIES IN EACH LOCAL MARKET TODAY CELLULAR IS A DUOPOLY WITH THE TRADITIONAL PHONE COMPANY RUNNING ONE SERVICE AND OUTSIDERS SUCH AS MCCAW OPERATING A COMPETING SERVICE SOME OF THE OUTSIDERS ARE PARTIALLY OWNED BY BABY BELLS FROM OTHER REGIONS TO PRESENT A UNITED FRONT NATIONWIDE MCCAW AND OTHER OUTSIDE OPERATORS INCLUDING SOUTHWESTERN BELL CORP HAVE BEEN USING THE CELLULAR ONE BRAND OF WIRELESS SERVICE STARTED BY SOUTHWESTERN NOW MCCAW'S FUTURE PARTICIPATION IN CELLULAR ONE IS IN DOUBT BECAUSE AT&T WILL LIKELY MARKET THE SERVICE UNDER ITS OWN MOREVISIBLE BRAND IF MCCAW LEAVES CELLULAR ONE ITS CURRENT PARTNERS COULD END UP HURTING AT&T BY SIGNING AN EXCLUSIVE ARRANGEMENT WITH MCI COMMUNICATIONS CORP OR SPRINT CORP TO CARRY THEIR CUSTOMERS' LONGDISTANCE CALLS MR AYVAZIAN SAYS WHILE THE MONOPOLYOWED CELLULAR CARRIERS ARE LEGALLY RESTRICTED FROM SIGNING EXCLUSIVE DEALS WITH LONGDISTANCE CARRIERS BECAUSE OF THEIR LOCAL PHONE MONOPOLIES THE OUTSIDERS HAVE NONE OF THESE OBLIGATIONS MEANWHILE SIX OF THE SEVEN BABY BELLS AND GTE THE NATION'S SECONDLARGEST CELLULAR PHONE COMPANY BANDED TOGETHER IN FEBRUARY TO MARKET THEIR CELLULAR SERVICE CALLED MOBILINK TO A WIDE VARIETY OF CONSUMERS WHILE IT'S OFF TO A SLOW START THE PARTNERS' PLANS ARE BACKED BY THE FINANCIAL MUSCLE OF PARENTS WITH ASSETS TOTALING WELL ABOVE 100 BILLION CRAIG MCCAW CHAIRMAN OF MCCAW CELLULAR SAID AT MONDAY'S ANNOUNCEMENT OF THE MERGER WITH AT&T THAT THE TWO COMPANIES WILL AGGRESSIVELY MARKET THEIR SERVICE TO THE AVERAGE CONSUMER THERE'S A LARGE SEGMENT OF RICH PEOPLE WHO HAVE CELLULAR PHONES BUT MOST AMERICANS DON'T HAVE THEM AND WE'RE GOING TO AIM AT THAT CUSTOMER GROUP MR MCCAW MIGHT AS WELL HAVE UTTERED MOBILINK'S STRATEGY SAYS AL BOSCHULTE CHAIRMAN OF NYNEX CORP'S CELLULAR BUSINESS AND OF THE MOBILINK CONSORTIUM THE COMPANIES IN MOBILINK COVER 83 OF THE US AND CANADIAN POPULATIONS VS ONETHIRD OF THE POPULATION FOR MCCAW MR BOSCHULTE NOTES ON DAY ONE WE STARTED WITH COVERAGE OF MORE THAN 80 OF THE NATION AND WE DON'T INTEND TO STOP THERE MR BOSCHULTE SAYS WE INTEND TO MARKET TO SEGMENTS OF THE POPULATION WHO ARE NOT CURRENTLY PARTICIPATING IN THE WIRELESS REVOLUTION HE SAYS AT&TMCCAW ALSO MUST RUN A GAUNTLET OF DATATRANSMISSION SERVICE RIVALS THE NEW TEAM HAS A GOOD HEAD START GIVEN THAT MCCAW OPERATES A NATIONAL NETWORK GIVING IT TIGHT CONTROL OVER SYSTEM CONSTRUCTION MAINTENANCE AND DISTRIBUTION OF SERVICES MOREOVER MCCAW PLANS TO TURN ON A NEW DIGITAL WIRELESS HIGHWAY FOR LAPTOP COMPUTERS BY THE END OF 1994 BUT OTHER WIRELESS DATA SERVICES ARE ALREADY UP AND RUNNING INCLUDING THE RAM MOBILE DATA INC NETWORK OWNED BY RAM BROADCASTING CORP AND BELLSOUTH CORP AND THE ARDIS NETWORK OWNED BY MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP USERS WILL PREFER TO USE OUR PACKETDATA NETWORK BECAUSE IT'S MORE SUITABLE FOR SENDING DATA THAN VOICE SAYS MARTIN LEVETIN RAM'S SENIOR VICE PRESIDENT RAM WHICH HAS AN AGREEMENT TO HANDLE ELECTRONIC MAIL MESSAGES ON AT&T'S EASYLINK SERVICE HAS AN EXTENSIVE WIRELESS SYSTEM IT LINKS 6300 US CITIES AND TOWNS AND IS DESIGNED TO TRANSMIT DATA LOCALLY OR ACROSS THE COUNTRY AS EASILY AS CURRENT OFFICE SYSTEMS CONNECT DESKTOP COMPUTERS MR LEVETIN'S COMMENTS RAISE QUESTIONS ABOUT THE TECHNICAL DESIGN OF MCCAW'S NETWORK MCCAW IS INSTALLING DIGITAL EQUIPMENT THAT WORKS OFF AN INDUSTRY TECHNICAL STANDARD CALLED TIME DIVISION MULTIPLE ACCESS OR TDMA BUT MUCH OF THE INDUSTRY IS GEARING UP TO BACK A RIVAL AND POTENTIALLY MORE POWERFUL TRANSMISSION SCHEME CALLED CODE DIVISION MULTIPLE ACCESS OR CDMA WHILE THE TWO METHODS ARE INCOMPATIBLE A MCCAW SPOKESMAN SAYS THAT MCCAW IS INSTALLING TDMA TO MEET CUSTOMER NEEDS NOW TDMA PLACES EACH CALL SIGNAL INTO A TIME SLOT AND TRANSMITS IT WITHIN A SINGLE FREQUENCY THIS GIVES CAPACITYSTARVED CELLULAR CARRIERS IN CARCLOGGED LOCALES SUCH AS LOS ANGELES THE ABILITY TO HANDLE THREE TO SEVEN TIMES MORE PHONE CALLS THAN CURRENT TRANSMISSION NETWORKS USING OLDER ANALOG SYSTEMS BUT CDMA IS BEING TOUTED BY SEVERAL RIVAL CARRIERS SUCH AS MR BOSCHULTE'S NYNEX MOBILE PACIFIC TELESIS GROUP'S PACTEL UNIT AND U S WEST INC'S CELLULAR BUSINESS CDMA SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE TO EACH CALL SIGNAL ALLOWING MORE CALLS TO OCCUPY THE SAME SPACE AND BE SPREAD OVER AN ENTIRE FREQUENCY BAND THE RESULT IS AS MUCH AS 20 TIMES MORE CALLHANDLING CAPACITY THAN CONVENTIONAL CELLULAR SYSTEMS A MCCAW SPOKESMAN SAYS THAT THE COMPANY WILL INSTALL WHATEVER SYSTEMS BEST SERVE ITS CUSTOMERS AND THAT IT'S USING TDMA BECAUSE THE TECHNOLOGY IS AVAILABLE TODAY CDMA ISN'T HERE YET WAYNE PERRY MCCAW'S VICE CHAIRMAN HAS SAID MCCAW PRIDES ITSELF ON BEING A TECHNOLOGY AGNOSTIC STILL TRANSMISSION TECHNOLOGY WILL BECOME EVEN MORE CRITICAL AS MCCAW ATTEMPTS TO COORDINATE ITS SERVICE WITH A SATELLITE NETWORK IT PLANS TO OPERATE NEXT YEAR WITH A COUPLE OF PARTNERS CALLED AMERICAN MOBILE SATELLITE CORP THE SYSTEM IS DESIGNED TO PROVIDE TRANSMISSION COVERAGE IN HARDTOREACH AREAS WHILE DOZENS OF CELLULAR CARRIERS HAVE SIGNED UP TO USE THE SYSTEM IT WILL HAVE TO COMPETE WITH FUTURE RIVAL NETWORKS RUN BY BIG PLAYERS SUCH AS THE GIANT INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION MOTOROLA AND A SLEW OF SMALLER SATELLITE SERVICE WANNABES BUT AT&TMCCAW'S TOUGHEST LONGTERM SHOWDOWN MAY COME AGAINST A NEW BREED OF SERVICE CALLED PERSONAL COMMUNICATION SERVICES PCS WOULD PUT A LIGHT INEXPENSIVE DIGITAL POCKETPHONE IN THE HANDS OF MILLIONS OF PEDESTRIANS THE SERVICE'S BACKERS INCLUDE EVERYBODY FROM AT&T NEMESIS MCI TO THE BABY BELLS TO ENTREPRENEURS WHO GOT CELLULAR ROLLING IN THE EARLY 1980S THE FEDERAL COMMUNICATIONS COMMISSION HAS ISSUED SOME TEST LICENSES FOR PCS BUT HAS YET TO AWARD PERMANENT LICENSES OR FREQUENCIES FOR THE SERVICE SEE RELATED STORY BABY BELLS PLAN TO PRESS US TO RELAX CURBS WSJ AUG 19 1993 9308190121 930819 ECONOMY US DEMAND FOR PETROLEUM IS STILL SLUGGISH DATA FOR JULY ARE WEAK BUT CONTINUED GROWTH IN CONSUMPTION IS SEEN BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL NEW OIL INDUSTRY FIGURES SHOW THAT US PETROLEUM DEMAND AN IMPORTANT ECONOMIC BAROMETER REMAINS SLUGGISH THE AMERICAN PETROLEUM INSTITUTE THE OIL ASSOCIATION THAT MAINTAINS THE INDUSTRY'S STATISTICS REPORTED THAT US OIL DEMAND AS MEASURED BY PETROLEUM PRODUCTS SUPPLIED FROM PRIMARY STORAGE AVERAGED 172 MILLION BARRELS A DAY FOR JULY AND 171 MILLION A DAY FOR THE FIRST SEVEN MONTHS OF 1993 THESE VOLUMES WERE ONLY MARGINALLY HIGHER LESS THAN A PERCENTAGE POINT THAN YEAREARLIER LEVELS ACCORDING TO THE API'S MONTHLY STATISTICAL REPORT RELEASED YESTERDAY STILL THE API SAID THAT INDICATORS FOR MOST MAJOR PRODUCTS ON AN INDIVIDUAL BASIS HAVE CONTINUED TO SUGGEST ONGOING ALTHOUGH MODEST GROWTH IN CONSUMPTION GASOLINE THE CHIEF PETROLEUM PRODUCT WAS CITED AS AN EXAMPLE IN CONTRAST TO YEARTOYEAR INCREASES IN RECENT PRIOR MONTHS AVERAGING 1 TO 15 GASOLINE DELIVERIES FOR JULY WERE ESSENTIALLY FLAT THE API SAID LAST MONTH ACCORDING TO THE API FIGURES DELIVERIES OF MOTOR FUEL AVERAGED 7774000 BARRELS A DAY ONLY MARGINALLY ABOVE THE 7766000 BARRELS A DAY OF JULY 1992 BUT DESPITE GASOLINE'S WEAK PERFORMANCE IN JULY THE API SAID THE TREND OF MODERATE GROWTH IN UNDERLYING CONSUMPTION IS BELIEVED TO HAVE BEEN CONTINUING IT ADDED DATA ON TRAVEL CONTINUE TO BOLSTER THE VIEW THAT GASOLINE CONSUMPTION HAS BEEN GROWING IN RECENT MONTHS THOUGH ONLY MODESTLY MEANWHILE US CONSUMPTION OF SOME OTHER PETROLEUM PRODUCTS SHOWED HEALTHY GAINS IN JULY THE API SAID DELIVERIES OF JET FUEL AND DISTILLATE FUELS WHICH INCLUDE HOME HEATING OIL ROSE 45 AND 48 RESPECTIVELY ALSO THE API SAID DELIVERIES OF RESIDUAL FUEL OIL COMMONLY USED FOR INDUSTRIAL PURPOSES OR GENERATING ELECTRICITY BROKE A PATTERN OF DECLINES OVER THE PAST YEAR BY RISING 2 IN JULY US REFINERIES OPERATED AT A STRONG 96 OF CAPACITY IN JULY THE API SAID AS A RESULT OF THIS HIGH LEVEL OF OPERATIONS COMBINED WITH SLUGGISH DEMAND FOR FUELS TOTAL INVENTORIES OF OIL AND PRODUCTS CONTINUED TO BUILD IN JULY AT THE END OF JULY ACCORDING TO THE API US INVENTORIES OF CRUDE AND PRODUCTS TOTALED SLIGHTLY MORE THAN 11 BILLION BARRELS THE HIGHEST LEVEL FOR THAT TIME OF THE YEAR IN THREE YEARS BUT ONE PLUS FACTOR FOR THE US IN THE OVERALL SLOW GROWTH FOR PETROLEUM DEMAND IS THAT IT HELPED TO HOLD DOWN THE MONTHLY CLIMB IN IMPORTED OIL IMPORTS OF CRUDE AND PRODUCTS INCREASED ONLY 04 OF A PERCENTAGE POINT TO 85 MILLION BARRELS A DAY IN JULY THE API SAID THAT WAS THE SMALLEST MONTHLY INCREASE SO FAR THIS YEAR IT ADDED STILL DOMESTIC CRUDE OIL PRODUCTION CONTINUED TO FALL IN THE LATEST MONTH AS PREVIOUSLY REPORTED US OUTPUT OF CRUDE HAS BEEN FALLING FASTER THAN EXPECTED IN JULY ACCORDING TO THE API CRUDE PRODUCTION FELL MORE THAN 400000 BARRELS A DAY OR NEARLY 6 TO 67 MILLION BARRELS A DAY BUT THE API ATTRIBUTED HALF THE DECLINE TO A 128 DROP IN ALASKAN OUTPUT RESULTING IN PART FROM DOWNTIME RELATED TO CONSTRUCTION AND MAINTENANCE WORK 9308190120 930819 CANADIAN NEWSPRINT OUTPUT ROSE IN JUNE MONTREAL CANADIAN NEWSPRINT PRODUCTION ROSE 91 IN JUNE FROM A YEAR EARLIER WHILE SHIPMENTS FELL 08 THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS OPERATED AT 93 OF CAPACITY IN JUNE UP FROM 84 A YEAR EARLIER THE INCREASE IN OUTPUT AND OPERATING RATES WAS DUE MAINLY TO THE EFFECTS OF A STRIKE IN BRITISH COLUMBIA LAST YEAR AN ECONOMIST WITH THE INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 758000 METRIC TONS OF NEWSPRINT IN JUNE SHIPMENTS FOR THE MONTH TOTALED 760000 TONS A METRIC TON IS 220462 POUNDS SHIPMENTS TO THE US WERE FLAT AT 492000 TONS DOMESTIC SHIPMENTS ROSE 114 FROM A YEAR EARLIER TO 97000 TONS SHIPMENTS TO OFFSHORE MARKETS FELL 103 TO 171000 TONS IN THE FIRST HALF CANADIAN MILLS OPERATED AT 94 OF CAPACITY UP FROM 86 A YEAR EARLIER NEWSPRINT PRODUCTION FOR THE PERIOD ROSE 11 TO 4794000 TONS TOTAL SHIPMENTS ROSE 75 TO 4707000 TONS THE ASSOCIATION SAID 9308190119 930819 INTERNATIONAL SOUTH KOREA LEADERS IN ELECTRONICS REPORT STRONG PROFIT GAINS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA SOUTH KOREA'S THREE ELECTRONICS GIANTS SAMSUNG ELECTRONICS CO GOLDSTAR CO AND DAEWOO ELECTRONICS CO REPORTED SOLID EXPANSION IN PROFIT AND SALES FOR THE FIRST HALF OF THIS YEAR THANKS TO BOOMING EXPORTS SAMSUNG REPORTED THAT FIRSTHALF NET INCOME ROSE 81 TO 562 BILLION WON 693 MILLION FROM 311 BILLION WON FOR THE SAME PERIOD LAST YEAR SALES WERE 377 TRILLION WON UP 32 FROM THE PRIOR YEAR'S 286 TRILLION WON SAMSUNG EXPORTS ROSE 47 FROM THE SAME PERIOD LAST YEAR GOLDSTAR REPORTED FIRSTHALF NET INCOME SOARED TO 303 BILLION WON FROM 56 BILLION WON IN THE YEAREARLIER PERIOD GOLDSTAR REPORTED SALES OF 247 TRILLION WON FOR THE FIRST HALF UP 32 FROM THE YEAREARLIER 187 TRILLION WON THE COMPANY'S EXPORTS ROSE TO 192 TRILLION WON FROM THE YEAREARLIER 9422 BILLION WON GOLDSTAR CITED A SUBSTANTIAL RISE IN EXPORTS OF CONSUMERELECTRONIC PRODUCTS DAEWOO ELECTRONICS MEANWHILE REPORTED NET INCOME OF 136 BILLION WON FOR THE FIRST HALF COMPARED WITH 112 BILLION WON IN THE YEAREARLIER PERIOD SALES WERE 9589 BILLION WON COMPARED WITH 8052 BILLION WON LAST YEAR EXPORTS JUMPED 29 TO 5882 BILLION WON FROM 4553 BILLION WON FOR THE YEAREARLIER PERIOD A RISE IN EXPORTS TO THE US AND JAPAN WAS PARTICULARLY NOTICEABLE IN THE COMPANY'S OVERALL OVERSEAS SHIPMENTS DAEWOO SAID 9308190118 930819 ECONOMY GE MAY TRIM AS MANY AS 4000 JETENGINE JOBS BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO IS ABOUT TO ANNOUNCE ANOTHER MAJOR ROUND OF LAYOFFS AT ITS BIG JETENGINE DIVISION NEAR CINCINNATI INDUSTRY EXECUTIVES SAID THE LAYOFFS COULD TOTAL 4000 WHICH WOULD BE ONE OF THE BIGGEST IN THE DIVISION'S RECENT WORKFORCE REDUCTIONS IN THE PAST TWO YEARS GE HAS ANNOUNCED CUTBACKS OF 750 3900 AND 1600 WHICH BY EARLY NEXT YEAR WILL BRING EMPLOYMENT IN THE JETENGINE DIVISION DOWN TO 26000 IF THE NEW ROUND OF CUTBACKS DOES REACH 4000 IT WOULD MEAN EMPLOYMENT WILL HAVE PLUMMETED TO ABOUT 22000 FROM NEARLY 34000 WITHIN A PERIOD OF ABOUT TWO YEARS A GE SPOKESWOMAN DECLINED TO CONFIRM THAT A LAYOFF ANNOUNCEMENT WOULD BE MADE BUT SHE ADDED THAT BECAUSE OF POOR BUSINESS CONDITIONS WE KNOW THAT EMPLOYMENT WILL CONTINUE TO DECREASE WOLFGANG DEMISCH AN ANALYST WITH BT SECURITIES CORP A UNIT OF BANKERS TRUST SAID THAT LAYOFFS OF AS MANY AS 4000 WORKERS WOULD BE A SIZABLE CHOP AND WOULD INDICATE THAT A TURNAROUND ISN'T IN SIGHT MR DEMISCH ADDED THAT GE HAS PRETTY GOOD MARKET INTELLIGENCE AND APPARENTLY THEY ARE PREDICTING A MORE SLUGGISH RECOVERY THAN WE WOULD HAVE HOPED THE ANALYST ALSO SAID THAT THE LAYOFFS WOULD INDICATE THAT THE ONGOING RACE BETWEEN GE AND PRATT & WHITNEY FOR EFFICIENCY HASN'T YET COME TO AN END PRATT & WHITNEY GE'S ARCHRIVAL IN THE JETENGINE BUSINESS HAS ALSO BEEN STREAMLINING ITS WORK FORCE PRATT A UNIT OF UNITED TECHNOLOGIES CORP HAS CUT EMPLOYMENT TO ABOUT 35000 FROM MORE THAN 44000 AT THE BEGINNING OF LAST YEAR AND ITS WORK FORCE IS SCHEDULED TO DROP TO ABOUT 30000 BY THE END OF NEXT YEAR DELIVERIES OF NEW JETLINERS WHICH ARE EXPECTED TO DECLINE NEARLY 50 FROM THE RECENT PEAK AND DELIVERIES OF MILITARY JETS WHICH ARE DROPPING EVEN FASTER ARE MAJOR REASONS FOR THE GLOOMY OUTLOOK BUT ANALYSTS SAY THAT SHARPLY DECLINING DELIVERIES OF SPARE PARTS WHICH ACCOUNT FOR HALF OR MORE OF THE PROFITS IN THE JETENGINE BUSINESS ARE AN ADDITIONAL FACTOR MAJOR AIRLINES HAVE BEEN CUTTING BACK THEIR FLEETS AND THUS REDUCING THEIR NEED FOR SPARE PARTS IN RECENT MONTHS AMERICAN AIRLINES DELTA AIR LINES AND CONTINENTAL AIRLINES HAVE ANNOUNCED THEY WOULD GROUND AIRPLANES RETURN THEM TO LESSORS OR SELL THEM FOR GE BASED IN FAIRFIELD CONN THE JETENGINE DIVISION IS ONE OF ITS BIGGEST BUSINESSES GENERATING NEARLY 74 BILLION IN REVENUE IN 1992 DESPITE THE HARD TIMES GE'S ENGINE BUSINESS IS STILL HIGHLY PROFITABLE PRODUCING OPERATING EARNINGS OF NEARLY 13 BILLION LAST YEAR GE EXECUTIVES HAVE SAID THAT ITS ENGINE BUSINESS MAY DECLINE TO REVENUE OF ABOUT 5 BILLION A YEAR BEFORE THE DOWNTURN IS OVER 9308190117 930819 HIGH SCHOOL SENIORS BOUND FOR COLLEGE SHOW SAT ADVANCES A WALL STREET JOURNAL NEWS ROUNDUP FOR THE SECOND CONSECUTIVE YEAR THE AVERAGE SAT SCORES FOR THE US'S COLLEGEBOUND HIGH SCHOOL SENIORS ROSE SLIGHTLY BUT EDUCATION EXPERTS CAUTIONED THAT THE IMPROVEMENT WAS STILL TOO MEAGER TO CELEBRATE EVEN SLIGHT MOVEMENTS IN TEST SCORES HAVE MEANING SAID DONALD M STEWART PRESIDENT OF THE COLLEGE BOARD WHICH SPONSORS THE COLLEGE ADMISSIONS TEST BUT HE ADDED THE NATION'S PROGRESS TOWARD ACADEMIC RECOVERY IS VERY SLOW THE AVERAGE SCORE ON THE TEST'S MATH SECTION ROSE TWO POINTS TO 478 OUT OF A POSSIBLE 800 THAT MARKS THE HIGHEST AVERAGE MATH SCORE SINCE 1974 BUT THE AVERAGE SCORE ON THE TEST'S VERBAL SECTION ROSE JUST ONE POINT TO 424 OF A POSSIBLE 800 LESS THAN THE AVERAGE VERBAL SCORE RECORDED FOUR YEARS AGO A RECORD 30 OF TESTTAKERS IN THE CLASS OF 1993 REPRESENTED RACIAL AND ETHNIC MINORITIES WITH THE AVERAGE TEST SCORES FOR SIX OF SEVEN MINORITY GROUPS RISING ON BOTH PARTS OF THE SAT ASIANAMERICAN WHITE AND OTHER ETHNIC STUDENTS REPORTED THE MOST ACADEMIC STUDY AND RECEIVED THE HIGHEST SCORES WHILE BLACK AND MEXICANAMERICAN STUDENTS REPORTED TAKING THE FEWEST ACADEMIC COURSES AND WERE AMONG THE LOWEST SCORERS IN MARCH THE COLLEGE BOARD WILL INTRODUCE AN SAT WITH EXPANDED READING SECTIONS AND FEWER MULTIPLECHOICE MATH QUESTIONS FOR THE FIRST TIME TESTTAKERS WILL BE ALLOWED TO USE CALCULATORS OFFICIALS SAY HOWEVER THAT FUTURE SAT SCORES WILL BE COMPARABLE WITH PAST YEARS WITH A SCALE OF 200 TO 800 9308190116 930819 MUTUAL FUNDS FIDELITY'S SMALLCAP FUND PROVES A MAGNET FOR DOLLARS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL TALK ABOUT MUTUALFUND MANIA INVESTORS ALREADY HAVE THROWN 500 MILLION INTO AN UNTRIED COMPUTERMANAGED SMALLSTOCK FUND LAUNCHED BY FIDELITY INVESTMENTS 7 1/2 WEEKS AGO FIRST OPENED TO INVESTORS JUNE 28 FIDELITY SMALL CAP STOCK FUND IS ALREADY BIGGER THAN MOST OF THE NATION'S SMALLSTOCK FUNDS THAT HAVE CLOSED TO NEW INVESTORS DURING THE PAST YEAR THESE FUNDS BARRED THE DOOR BECAUSE MANAGEMENT FEARED THEY WERE GETTING TOO BIG TO BUY SMALL STOCKS WITHOUT JOSTLING THE PRICE THE TORRENT OF NEW CASH POURING INTO FIDELITY SMALL CAP AT AN AVERAGE OF 13 MILLION EACH BUSINESS DAY LEAVES PEOPLE IN THE FUND INDUSTRY GASPING INVESTORS AREN'T DETERRED BY THE 3 SALES LOAD THAT MANY MUST PAY OUTSIDE RETIREMENT ACCOUNTS AND THEY DON'T SEEM TO WORRY THAT THE FUND'S PERFORMANCE COULD SUFFER IF ITS HEAVY BUYING ARTIFICIALLY INFLATES SMALLSTOCK PRICES BUT FIDELITY ARGUES THAT THE FUND'S COMPUTERIZED METHOD OF PICKING STOCKS GIVES IT THE ABILITY TO HANDLE ALL THE CASH PEOPLE ARE THROWING AT IT DESPITE ITS RAPID GROWTH THE FUND HAS LESS THAN 20 OF ASSETS IN CASH THE REST HAVING BEEN INVESTED IN STOCKS IS THE BIG INFLOW A PROBLEM NONE WHATSOEVER SAYS BRADFORD LEWIS THE FUND'S 38YEAROLD MANAGER MR LEWIS SAYS THAT EACH DAY HIS COMPUTER SPITS OUT A LIST OF 350 TO 400 STOCKS TO BUY HE PUTS THE LIST ONTO A COMPUTER FLOPPY DISK WHICH HE BRINGS EACH MORNING TO THE FIDELITY TRADING DESK THE TRADERS MR LEWIS SAYS AREN'T VERY HAPPY AT HAVING TO BUY 400 SMALL STOCKS FOR ONE FUND MANAGER IT'S TOUGH TO WALK UP THERE EVERY DAY AND AVOID THE TOMATOES MR LEWIS A FORMER NAVY PILOT AND SELFCONFESSED COMPUTER GEEK ALREADY MANAGES 25 BILLION IN ASSETS FOR FIDELITY THE OLDEST OF HIS FUNDS DISCIPLINED EQUITY HAS BEATEN THE STANDARD & POOR'S 500 INDEX IN EACH OF ITS FOUR FULL CALENDAR YEARS OF OPERATION AND SO FAR IS BEATING THE INDEX AGAIN THIS YEAR BY MORE THAN TWO PERCENTAGE POINTS THE NEW FUND AIMS TO BEAT THE RUSSELL 2000 INDEX OF SMALL STOCKS FOR ALL OF HIS FUNDS MR LEWIS USES A TYPE OF COMPUTER SOFTWARE CALLED A NEURAL NETWORK TO PICK STOCKS A NEURAL NETWORK IS MORE COMPLEX THAN A SIMPLE COMPUTER SCREEN IN THAT IT TRIES TO MIMIC THE ARCHITECTURE AND FUNCTION OF THE HUMAN BRAIN A NEURAL NETWORK IS A MACHINE THAT LEARNS CAUSEANDEFFECT PATTERNS RATHER THAN BEING TOLD MR LEWIS SAYS IT LEARNS BY LOOKING AT THE DATA OVER AND OVER AGAIN IN THIS CASE THE NETWORK TRIES TO DETERMINE HOW THE MARKET VALUES STOCKS AND THEN SEARCHES FOR STOCKS THAT APPEAR TO BE UNDERPRICED THE THEORY IS THAT THE COMPUTER MIGHT FIND SUBTLE RELATIONSHIPS IN THE PRICING OF STOCKS THAT WOULD EVADE HUMAN STOCK PICKERS IN PRACTICE MR LEWIS'S NETWORK HAS TENDED TO PICK STOCKS THAT ARE CHEAP COMPARED WITH SUCH BENCHMARKS AS BOOK VALUE AND EARNINGS BUT THAT ALSO POSSESS HIGHER EARNINGS GROWTH RATES THAN THE MARKET MR LEWIS SAYS THAT ONLY BY USING A COMPUTER TO PICK STOCKS CAN HE HANDLE THE VAST SUMS MOVING INTO HIS FUND IF I HAD TO GO OUT AND VISIT EVERY ONE OF THESE COMPANIES NO WAY COULD I PHYSICALLY BUY 400 STOCKS A DAY MR LEWIS CONCEDES HE SAYS HE USES FIDELITY'S RESEARCH DEPARTMENT AS QUALITY ASSURANCE REJECTING A COMPUTERCHOSEN STOCK IF FIDELITY ANALYSTS SUGGEST SELLING IT ONE STOCK HE HAS SOLD LATELY AT THE COMPUTER'S ADVICE WAS ZENITH LABORATORIES HE SAYS THE FUND MADE A PROFIT OF ABOUT 10 ON EACH SHARE WHICH NOW SELLS FOR 60 IN THE BRIEF PERIOD FROM THE FUND'S INCEPTION JUNE 28 THROUGH LAST THURSDAY SMALL CAP HAD A GAIN OF 21 ACCORDING TO LIPPER ANALYTICAL SERVICES NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY SAYS FIDELITY CHOSE MR LEWIS TO RUN SMALL CAP PRECISELY BECAUSE IT BELIEVED HIS COMPUTERS COULD HANDLE THE BIG MONEY IT EXPECTED THE FUND TO ATTRACT WITHOUT HAVING TO CLOSE THE FUND TO NEW INVESTORS EVEN FIDELITY WHICH HAS HISTORICALLY BEEN LOATH TO CLOSE ITS FUNDS BARRED THE DOOR TO ITS LOWPRICED STOCK FUND IN FEBRUARY THIS YEAR IN THE FACE OF HEAVY INVESTOR DEMAND FOR HOT SMALLSTOCK FUNDS BUT FIDELITY KEPT THE NAMES AND ADDRESSES OF INVESTORS WHO INQUIRED ABOUT LOWPRICED STOCK FUND AFTER IT CLOSED WE KNEW THAT WE HAD A VERY CAPTIVE PROSPECT BASE ON THE NEW FUND SAYS FIDELITY'S MR LITVACK FIDELITY MAILED A LETTER TO THOSE PROSPECTS ANNOUNCING THE OPENING OF SMALL CAP AND THE MONEY BEGAN FLOWING IN ABOUT HALF THE MONEY COMING INTO THE NEW FUND INVOLVED TRANSFERS FROM EXISTING FIDELITY FUNDS AND ABOUT HALF WAS NEW MONEY FROM OUTSIDE FIDELITY HE ADDS SOME NEW LAUNCHES OF BROKERSOLD STOCK OR BOND FUNDS HAVE ATTRACTED MORE MONEY BUT FOR A FUND THAT ISN'T SOLD THROUGH BROKERS FIDELITY SMALL CAP HAS GROWN AT AN ASTOUNDING RATE I WOULD ESTIMATE IT'S THE FASTEST INTRODUCTION EVER FOR A STOCK FUND THAT ISN'T SOLD THROUGH BROKERS SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A CONSULTING FIRM IN NEW YORK THERE'S A CHANCE THE FUND'S RAPID GROWTH WON'T BE GOOD FOR ITS INVESTORS GEORGE U SAUTER MANAGER OF MOST OF THE INDEX FUNDS RUN BY ARCHRIVAL VANGUARD GROUP SAYS THE FAST GROWTH OF THE FIDELITY FUND COULD LEAD IT TO INCUR SUBSTANTIAL TRANSACTION COSTS IN THE MARKET HURTING RETURNS SMALL STOCKS ARE MORE EXPENSIVE TO TRADE THAN LARGE STOCKS MR LEWIS CONCEDES THAT THE BIDASK SPREADS IN SOME SMALL STOCKS ARE SHAMEFUL BUT HE SAYS HE LIMITS BUYING OF STOCKS TO 15 OF THEIR AVERAGE DAILY TRADING VOLUME A LEVEL THAT HE THINKS DOESN'T ARTIFICIALLY DRIVE UP THEIR PRICES KENNETH GREGORY EDITOR OF THE NEWSLETTER NOLOAD FUND ANALYST SAYS HE MIGHT BE OPEN TO MAKING A SMALL BET ON FIDELITY SMALL CAP BUT HE WARNS IF THE FUND GETS BIGGER WHETHER USING A COMPUTER OR NOT IT MAKES THE JOB MORE DIFFICULT FOR ONE THING AS THE FUND GROWS IT WILL HAVE TO CHOOSE LESSATTRACTIVE STOCKS FROM ITS COMPUTER MODEL AND IT MAY HAVE TO START BUYING BIGGER STOCKS I DON'T DISAGREE WITH THAT CRITICISM MR LEWIS SAYS HE THINKS THAT HE COULD GET A BETTER RETURN RUNNING A SMALLER FUND BUT I DON'T SEE THE DIMINISHING MARGINAL RETURNS IN A BIG WAY YET HE SAYS I STILL THINK YOU CAN GET A PRETTY COMPETITIVE RETURN AT 500 MILLION IN FUND ASSETS THE FUND IS ALLOWED BY CHARTER TO BUY COMPANIES WITH A STOCK MARKET VALUESHARE PRICE TIMES SHARES OUTSTANDING OF AS MUCH AS 750 MILLION ITS BIGGEST HOLDING HAS YET TO EXCEED 500 MILLION 9308190115 930819 TECHNOLOGY APPLE'S NEWTON COMPUTER SELLS BRISKLY BUT SOME USERS CRITICIZE A KEY FEATURE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF APPLE COMPUTER INC'S NEW HANDHELD COMPUTERS APPEAR TO BE OFF TO A BRISK START IN THE FEW MARKETS WHERE THEY ARE AVAILABLE BUT RETAILERS SAY IT'S TOO EARLY TO TELL WHETHER IT'S THE BLOCKBUSTER PRODUCT APPLE BADLY NEEDS AND DESPITE GENERALLY FAVORABLE REVIEWS A FEW EARLY USERS OF THE COMPUTER THE NEWTON MESSAGEPAD SAID THEY'RE UNHAPPY WITH THE DEVICE'S KEY FEATURE ITS ABILITY TO RECOGNIZE HANDWRITING THE CUPERTINO CALIF COMPANY INTRODUCED ITS MUCHANTICIPATED AND MUCHDELAYED MESSAGEPAD ON AUG 2 AT A COMPUTER TRADE SHOW WHERE COMPUTER VENDORS QUICKLY SOLD SEVERAL THOUSAND OF THE DEVICES SINCE THEN APPLE SAID YESTERDAY RETAILERS ARE SEEING EXCEPTIONAL DEMAND FOR THE MESSAGEPAD A PAPERBACKSIZED COMPUTER THAT RECOGNIZES HANDWRITING AND CAN SEND FAXES OVER PHONE LINES AND RECEIVE WIRELESS PAGER MESSAGES ONE SUCH RETAILER COMPUTER TOWN INC OF SALEM NH HAS SOLD 500 MESSAGEPADS SINCE THE END OF THE COMPUTER SHOW SOME OF THEM TO CORPORATE AND GOVERNMENT USERS THAT ARE BUYING UP TO A DOZEN AT A TIME AFTER HAVING TESTED ONE EARLIER THIS MONTH I'VE BEEN IN THIS BUSINESS 14 YEARS AND HAVE NEVER SEEN DEMAND THIS STRONG FOR A NEW PRODUCT SAID THOMAS JACOBS THE CHAIN'S PRESIDENT STILL THE EARLY RETURNS COME ONLY FROM THE 150 OR SO STORES IN THE NEW YORK AND BOSTON AREAS THAT APPLE HAS SUPPLIED WITH SEVERAL THOUSAND UNITS OF INITIAL SHIPMENTS MANY OF THE FIRST MACHINES WENT TO SOFTWARE HOUSES APPLE ENTHUSIASTS WHO HAVE BEEN HEARING ABOUT THE NEWTON PLANS FOR MORE THAN A YEAR AND GADGET HOUNDS WHO ALWAYS WANT THE LATEST PRODUCT AS SOON AS POSSIBLE ACCORDING TO RETAILERS IT'S A NEW TOY ANYTHING NEW THAT COMES UP I THINK I HAVE TO BUY SAID ROBERT SIROTA PRESIDENT OF MICROCAD CORP A CUPERTINO SOFTWARE HOUSE THAT BOUGHT NINE MESSAGEPADS ON AUG 2 WITH HOPES OF WRITING NEW SOFTWARE FOR THE DEVICES PHILO PAPAS GENERAL MANAGER OF THE COMPUTERRETAIL OPERATIONS AT LECHMERE INC A 23STORE CHAIN BASED IN WOBURN MASS SAID SALES OF THE 700 MESSAGEPAD HAVE FAR EXCEEDED EXPECTATIONS BUT HE ADDED THAT IT WILL TAKE SEVERAL MONTHS TO TELL HOW BIG A SUCCESS THE MESSAGEPAD REALLY IS YOU HAVE TO SEPARATE THE PENTUP DEMAND FROM HOW MUCH DEMAND THERE REALLY IS FOR THE PRODUCT FROM THE TYPICAL CUSTOMER HE SAID WE HAVEN'T HAD ENOUGH PRODUCT YET TO DETERMINE THAT THE TRUE TEST OF DEMAND FOR THE MESSAGEPAD WILL COME AFTER LABOR DAY WHEN APPLE PLANS TO BEGIN NATIONWIDE SHIPMENTS SAID JOHN REILLS GENERAL MANAGER OF COMPUSA INC'S STORE IN BRIGHTON MASS WHICH HAS BEEN SELLING ABOUT SIX MESSAGEPADS A DAY IT'S IN THE GROWING END OF THE MARKET AND THE MARKET IS GOING TO KEEP EXPANDING HE SAID BUT IT'S MUCH TOO EARLY TO EXTRAPOLATE A MAJOR APPLE SUCCESS FROM THE INITIAL HOT SALES OF SEVERAL THOUSAND MESSAGEPADS HE SAID IT ALSO WILL TAKE SEVERAL MORE WEEKS FOR THE FIRST USERS' EVALUATIONS WHICH COULD AFFECT FUTURE SALES TO FILTER OUT THE EARLY RETURNS ARE MIXED DAVID EARNEST A COMPUTER CONSULTANT IN DECATUR ALA WHO USES A MESSAGEPAD TO ORGANIZE HIS SCHEDULE AND CONTACT LISTS SAID HE LIKES THE DEVICE SO MUCH HE PLANS TO BUY SIX MORE TO ADD TO THE SIX HE ALREADY HAS BOUGHT FOR HIS COMPANY BUT OTHERS LIKE GERALD HORNIK DIRECTOR OF TECHNICAL SERVICES AT THE MEDIA LABORATORY AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY SAID THAT THE MESSAGEPAD'S HANDWRITINGRECOGNITION IS SUBPAR IT ISN'T GOOD ENOUGH TO MAKE IT USEFUL SAID MR HORNIK WHO ADDED THAT THE GADGET OCCASIONALLY FREEZES UP FOR NO APPARENT REASON AND HAS A PARTICULARLY TOUGH TIME UNDERSTANDING THE WRITINGS OF HIS LEFTHANDED WIFE AND DAUGHTER AN APPLE SPOKESWOMAN SAID THE COMPANY HASN'T HAD ANY COMPLAINTS FROM CUSTOMERS ABOUT THE NEWTON MESSAGEPAD'S HANDWRITING RECOGNITION AND THAT THE DEVICE IS DESIGNED TO LEARN A USER'S HAND OVER TIME NEWTON WILL ADAPT TO YOUR HANDWRITING AND YOU HAVE TO WORK WITH IT SHE SAID 9308190114 930819 CITICORP EXECUTIVES GIVEN OPTIONS LINKED TO RISE IN STOCK PRICE NEW YORK CITICORP HAS GIVEN SENIOR EXECUTIVES OPTIONS THAT HAVE VALUE ONLY IF THE COMPANY'S STOCK RISES MORE THAN 50 ABOVE THE CURRENT PRICE UNLIKE TYPICAL INCENTIVE PACKAGES WHICH GRANT OPTIONS THAT HAVE VALUE AS SOON AS THE COMPANY'S STOCK PRICE EXCEEDS THE EXERCISE PRICE EVEN BY A SMALL AMOUNT THE CITICORP OPTIONS HAVE VALUE ONLY IF THE STOCK RISES WELL ABOVE ITS CURRENT LEVEL THE UNUSUAL STRUCTURE OF THE PACKAGE GIVES EXECUTIVES MORE INCENTIVE TO IMPROVE THE PERFORMANCE OF THE NATION'S BIGGEST BANKING COMPANY AND COMES AT A TIME WHEN CORPORATIONS ARE UNDER INCREASING PRESSURE TO BE MORE RESPONSIVE TO STOCKHOLDER CONCERNS THIS ALIGNS THE INTERESTS OF A KEY GROUP OF DECISION MAKERS MORE CLOSELY WITH THAT OF THE STOCKHOLDERS A CITICORP SPOKESMAN SAID THE OPTIONS CARRY AN EXERCISE PRICE THAT ALLOWS THE MANAGERS TO BUY SHARES AT 3175 THEY CAN EXERCISE HALF THE OPTIONS IF THE STOCK RISES TO 50 WITHIN FIVE YEARS AND STAYS THERE FOR 20 OF 30 CONSECUTIVE TRADING DAYS THEY CAN EXERCISE ALL THEIR OPTIONS IF THE PRICE REACHES 60 CITICORP STOCK CLOSED AT 33 UP 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CITICORP CHAIRMAN JOHN REED AND FIVE OTHER SENIOR EXECUTIVES RECEIVED 150000 OPTIONS EACH AN UNDISCLOSED NUMBER OF OTHER EXECUTIVES RECEIVED OPTIONS WITH SIMILAR TERMS 9308190113 930819 ABREAST OF THE MARKET INDUSTRIAL STOCKS TOP 3600 BARRIER ON STRENGTH IN CONSUMER ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK MORE STRENGTH IN SHARES OF CONSUMER PRODUCTS COMPANIES SENT THE DOW JONES INDUSTRIAL AVERAGE PAST THE 3600 MILESTONE FOR THE FIRST TIME AND WHILE THE INDUSTRIAL AVERAGE CRUISED TO ITS FOURTH RECORD IN EIGHT SESSIONS SEVERAL BROADBASED STOCK INDEXES TOPPED ALLTIME HIGHS THAT HAVE STOOD FOR MORE THAN FIVE MONTHS THE INDUSTRIAL AVERAGE CLOSED WITH A GAIN OF 1788 OR 050 TO 360486 IT HAD SURGED MORE THAN 30 AT ONE POINT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 160 OR 064 TO A RECORD 25287 AND THE DOW JONES EQUITY MARKET INDEX RALLIED 249 OR 058 TO A NEW HIGH OF 43329 THE STANDARD & POOR'S 500 STOCK INDEX TOPPED ITS HIGH DURING THE DAY BUT FINISHED JUST BELOW THAT MARK UP 291 OR 064 TO 45604 THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX CLIMBED 397 POINTS OR 090 TO 44663 A NEW HIGH BARGAINHUNTING IN DEPRESSED DRUG TOBACCO AND FOOD STOCKS HAD BEGUN TO EMERGE TUESDAY THE GROUP HAS BEEN HOBBLED FOR MONTHS BY WORRIES ABOUT THE CLINTON ADMINISTRATION'S HEALTHCARE OVERHAUL PLANS AND BY CONCERNS OVER PRICE COMPETITION IN PRODUCTS SUCH AS CIGARETTES THE CONSUMER RALLY WAS KEPT ALIVE YESTERDAY BY SHARP GAINS IN OVERSEAS MARKETS IN THE MORNING AND IN TREASURY BOND PRICES ALL DAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX SURGED 16 TO A RECORD THE 30YEAR TREASURY BOND CLIMBED 3/4 POINT PUSHING ITS YIELD TO A 16YEAR LOW OF 625 SHARES OF DRUG INDUSTRY LEADER MERCK WERE THE MOST ACTIVE ON THE BIG BOARD UP 1 5/8 TO 32 1/2 ON 88 MILLION SHARES OTHER CONSUMER STOCKS PEPPERED THE LIST INCLUDING PHILIP MORRIS WHICH RALLIED 1 3/4 TO 50 1/8 GLAXO HOLDINGS WHICH ROSE 1 1/8 TO 17 7/8 AND BRISTOLMYERS SQUIBB UP 1 7/8 TO 56 1/2 THOSE GAINS CAME AT THE EXPENSE OF CYCLICAL ISSUES AS INVESTORS TOOK PROFITS IN THOSE RECENT HIGHFLIERS AUTO MAKERS WERE HIT HARD GENERAL MOTORS DROPPED 2 1/8 TO 44 3/8 FORD MOTOR 1 1/2 TO 50 1/4 AND CHRYSLER 1 3/4 TO 42 I THINK INVESTORS ARE QUESTIONING HOW DEVASTATING THE CLINTON HEALTHCARE PLAN WILL BE AND WHETHER IT WILL EVER BE PASSED SAID PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS HE PREDICTED MORE GAINS IN THE PHARMACEUTICAL GROUP STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAID THE GAINS IN THE CONSUMER STOCKS THE MARKET'S TRADITIONAL GROWTH ISSUES REFLECT INVESTORS' WORRIES OVER THE STRENGTH OF THE US ECONOMY GROWTH STOCKS TYPICALLY MAINTAIN THEIR EARNINGS MOMENTUM REGARDLESS OF THE ECONOMIC ENVIRONMENT BUT MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO SAID THE RALLY IN CONSUMER ISSUES MAY BE A SHORTTERM PHENOMENON THAT IS BEING POWERED BY MOMENTUM PLAYERSINVESTORS TRYING TO MAKE A QUICK PROFIT BASED ON SHORTTERM TRENDS AIR PRODUCTS & CHEMICALS JUMPED 2 3/8 TO 44 3/4 THE INDUSTRIAL AND MEDICAL GAS PRODUCER DISCLOSED A COSTCUTTING PLAN THAT INCLUDES A 7 TO 10 REDUCTION IN ITS WORK FORCE MA HANNA WAS UP 2 TO 30 3/4 AFTER MERRILL LYNCH RAISED ITS INTERMEDIATETERM OPINION ON THE STOCK TO BUY SHARES OF THE PRODUCER OF PLASTIC AND RUBBER COMPOUNDS HAD BEEN RATED ABOVE AVERAGE FREEPORTMCMORAN RESOURCE DROPPED 2 1/8 TO 17 7/8 AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL HIGHLIGHTED PROBLEMS THE COMPANY HAS FACED BECAUSE OF A SHARP DROP IN SULFUR AND FERTILIZER PRICES OVER RECENT YEARS HOME DEPOT DROPPED FOR A SECOND STRAIGHT DAY LOSING 2 3/8 TO 42 3/8 ON HEAVY VOLUME OF 53 MILLION SHARES THE STOCK DROPPED 1 7/8 ON TUESDAY EVEN THOUGH THE BUILDING PRODUCTS AND HARDWARE RETAILER POSTED IMPROVED SECONDQUARTER NET SOME ANALYSTS ALSO SHAVED A FEW CENTS OFF THEIR PERSHARE EARNINGS ESTIMATES FOR HOME DEPOT'S YEAR ENDING IN JANUARY 1994 CITING A HIGHER CORPORATE TAX RATE HIGHER PREOPENING STORE EXPENSES AND TOUGHER SALES COMPARISIONS IN THE FISCAL THIRD AND FOURTH QUARTERS TURNER BROADCASTING'S CLASS A STOCK FELL 5/8 TO 23 ON THE AMEX DIRECTORS APPROVED ITS 600 MILLION PURCHASE OF NEW LINE CINEMA AND CLOSELY HELD CASTLE ROCK ENTERTAINMENT NEW LINE'S SHARES INCHED UP 3/4 TO 19 5/8 ON THE AMEX GRUPO SIMEC GAINED 1 TO 14 1/2 ON THE AMEX SALOMON BROTHERS INITIATED COVERAGE OF THE MEXICAN STEEL PRODUCER WITH A BUY RATING EASTMAN KODAK ADDED 1/8 TO 60 3/8 THE COMPANY SAID IT PLANS TO INCREASE ITS CASH FLOW BY REDUCING CAPITAL SPENDING AND CUTTING 10000 JOBS BY 1995 THE PHOTOGRAPHIC EQUIPMENT CONCERN SAID THE MOVES WILL ALLOW IT TO REDUCE ITS BORROWINGS CRYSTAL BRANDS DROPPED 1 TO 2 1/8 THE CLOTHING COMPANY POSTED A LOSS OF 1045 MILLION OR 1146 A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH THE RESULTS INCLUDED AN 82 MILLION CHARGE A YEAR AGO IT HAD A DEFICIT OF 183 MILLION OR 201 A SHARE JONES APPAREL GROUP INCREASED 1 1/4 TO 26 1/4 THE CLOTHING MANUFACTURER SIGNED A LETTER OF INTENT TO PURCHASE THE RIGHTS TO THE EVAN PICONE TRADEMARK FROM CRYSTAL BRANDS FOR 20 MILLION IN CASH PLUS FUTURE ROYALTY PAYMENTS CARNIVAL CRUISE LINES SLIPPED 1 1/2 TO 42 1/4 DEAN WITTER REYNOLDS ANALYST PAUL MACKEY DOWNGRADED THE STOCK TO NEUTRAL FROM ACCUMULATE HE SAID THE CUT WAS IN RESPONSE TO RECENT SHARP GAINS IN THE MIAMI CRUISE SHIP OPERATOR'S SHARE PRICE WYLE LABORATORIES JUMPED 1 1/8 TO 16 3/8 AVNET RALLIED 1 3/4 TO 41 AND ARROW ELECTRONICS CLIMBED 1 TO 40 SMITH BARNEY SHEARSON RAISED RATINGS ON THE STOCKS TO BUY FROM NEUTRAL ALL THREE COMPANIES MAKE ELECTRONIC PARTS ARX INC ADDED 1/2 TO 2 7/8 THE COMPANY WHICH MAKES MECHANICAL AND ELECTRONIC COMPONENTS REPORTED EARNINGS OF 13 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JUNE 30 COMPARED WITH EARNINGS FROM OPERATIONS OF SIX CENTS A YEAR EARLIER 9308190112 930819 INTERNATIONAL DE LAROSIERE ELECTED HEAD OF BANK FOR RECONSTRUCTION SPECIAL TO THE WALL STREET JOURNAL LONDON BANK OF FRANCE GOVERNOR JACQUES DE LAROSIERE WAS ELECTED TO A FOURYEAR TERM AS THE NEW PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT MR DE LAROSIERE RECEIVED 58 OUT OF A POSSIBLE 59 VOTES WITH ONE OF THE BANK'S GOVERNORS ABSTAINING HE WAS THE ONLY CANDIDATE AFTER FORMER ITALIAN PRIME MINISTER GIULIANO AMATO FORMER POLISH FINANCE MINISTER LESZEK BALCEROWICZ AND TOP EUROPEAN COMMUNITY ECONOMICS OFFICIAL HENNING CHRISTOPHERSEN ALL WITHDREW FROM THE RACE MR DE LAROSIERE SUCCEEDS ANOTHER FRENCHMAN JACQUES ATTALI WHO RESIGNED LAST MONTH DISGRACED BY A SERIES OF FINANCIAL GAFFES THAT EMBARRASSED THE BANK MR ATTALI'S FOURYEAR TERM HAD TWO YEARS REMAINING MR DE LAROSIERE FORMER HEAD OF THE INTERNATIONAL MONETARY FUND IS SEEN AS THE ANTITHESIS OF MR ATTALI BECAUSE HE'S A HANDSON MANAGER WITH GREAT EXPERIENCE IN INTERNATIONAL FINANCE MR ATTALI WAS KNOWN FOR HIS VISION WHICH SPAWNED THE BANK BUT WASN'T KNOWN FOR HIS ATTENTION TO DETAIL ANNE WIBBLE SWEDISH FINANCE MINISTER AND CHAIRMAN OF THE RECONSTRUCTION BANK'S BOARD OF GOVERNORS SAID SHE WAS CONFIDENT THAT UNDER MR DE LAROSIERE THE BANK WILL BE IN A POSITION TO PLAY AN EVEN MORE ACTIVE ROLE IN FULFILLING ITS IMPORTANT MANDATE TO SUPPORT THE TRANSFORMATION OF CENTRAL AND EASTERN EUROPE AND THE FORMER SOVIET UNION 9308190111 930819 BUSINESS BRIEF AIR PRODUCTS PLANS A CUT OF 7 TO 10 IN TOTAL WORK FORCE ALLENTOWN PA AIR PRODUCTS & CHEMICALS INC SAID IT IS REDUCING ITS WORK FORCE BY 7 TO 10 AS PART OF A PROGRAM TO IMPROVE COMPETITIVENESS AND PROFITABILITY THE COMPANY SAID IT WILL TAKE A CHARGE IN CONNECTION WITH THE ACTION WHICH WILL AFFECT AS MANY AS 1400 WORKERS BUT SAID IT DOESN'T YET KNOW THE AMOUNT OF THE CHARGE OR WHEN IT WILL BE RECORDED THE SUPPLIER OF INDUSTRIAL GASES AND SPECIALTY CHEMICALS WHICH HAS 14400 EMPLOYEES WORLDWIDE SAID THE PROGRAM INCLUDES PLANS TO IMPROVE WORK PROCESSES CONSOLIDATE AND RESTRUCTURE CERTAIN PARTS OF THE COMPANY AND ELIMINATE SOME LOWER POTENTIAL PROGRAMS FOR EXAMPLE A SPOKESMAN SAID AIR PRODUCTS IS WITHDRAWING FROM THE AMMONIAFERTILIZER BUSINESS AN AREA IN WHICH IT ISN'T VERY STRONG IT ALSO PLANS TO REDUCE THE NUMBER OF DIVISIONS WITHIN ITS CHEMICAL BUSINESS THE COMPANY WILL ELIMINATE 400 TO 450 EMPLOYEES IN ITS US MERCHANTGAS BUSINESS WHICH SELLS OXYGEN NITROGEN AND HYDROGEN TO OTHER COMPANIES IT ADDED THAT ITS EUROPEAN INDUSTRIALGAS BUSINESS HAS ALSO BEEN REORGANIZED AIR PRODUCTS SAID ITS PROGRAM IS DESIGNED TO INCREASE PROFIT AND IMPROVE MARKETING AND CUSTOMER SERVICE IN RESPONSE TO AN INCREASINGLY COMPETITIVE ENVIRONMENT THE COMPANY'S SALES AND EARNINGS HAVE GROWN SINCE 1989 AT A 7 COMPOUNDED RATE IT SAID AND CASH FLOW FROM OPERATIONS HAS INCREASED MORE THAN 10 ANNUALLY 9308190110 930819 BUSINESS BRIEFS SAFEGUARD SCIENTIFICS INC IS THE PRINCIPAL STRATEGIC PARTNER IN A NEW HIGHTECHNOLOGY COMPANY XL VISION INC THAT WILL FOCUS ON ELECTRONIC IMAGING PRODUCTS PAGES INC ACQUIRED CREATIVE MEDIA APPLICATIONS INC A BEDFORD HILLS NY PUBLISHER OF MULTIMEDIA PRODUCTS TERMS WEREN'T DISCLOSED UNISYS CORP SIGNED A 48 MILLION CONTRACT FOR A WSR88D ADVANCED DOPPLER WEATHER RADAR SYSTEM FOR TAIWAN THE FIRST SALE OF THE SYSTEM OUTSIDE THE US PROCTER & GAMBLE CO INTENDS TO SELL MARYLAND CLUB FOODS INC A HOUSTONBASED SUBSIDIARY THAT SELLS COFFEE TO THE FOOD SERVICE INDUSTRY AS PART OF ITS MASSIVE RESTRUCTURING PLAN THAT INVOLVES SLASHING 13000 JOBS AND CLOSING 30 PLANTS 9308190109 930819 WHO'S NEWS EMPIRE BLUE CROSS TAPS O'BRIEN EXEXECUTIVE OF CIGNA TO BE CHIEF NEW YORK EMPIRE BLUE CROSS & BLUE SHIELD NAMED FORMER CIGNA CORP EXECUTIVE G ROBERT O'BRIEN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE APPEARS TO SIGNAL EMPIRE'S COMMITMENT TO EXPANDING ITS MANAGEDCARE OPERATIONS AT CIGNA WHERE MR O'BRIEN WAS AN EXECUTIVE VICE PRESIDENT HE HEADED THE COMPANY'S EMPLOYEE BENEFITS OPERATION DEVELOPING IT INTO A LEADER IN MANAGED CARE HE RETIRED FROM CIGNA WHERE HE SPENT OVER 30 YEARS IN APRIL MR O'BRIEN 56 YEARS OLD SUCCEEDS ALBERT CARDONE WHO QUIT UNDER PRESSURE FROM THE NEW YORK STATE INSURANCE DEPARTMENT UNDER MR CARDONE EMPIRE THE COUNTRY'S LARGEST BLUES ORGANIZATION SUFFERED HUGE LOSSES THAT THREATENED ITS FINANCIAL HEALTH EMPIRE ALSO NAMED THREE NEW DIRECTORS TO ITS BOARD FILLING VACANCIES NEW DIRECTORS ARE JOHN F MCGILLICUDDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHEMICAL BANKING CORP FAYE WATTLETON FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PLANNED PARENTHOOD FEDERATION OF AMERICA INC AND JOHN ZUCCOTTI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OLYMPIA & YORK COS USA 9308190108 930819 INTERNATIONAL NAFTA IS AN OPPORTUNITY THE US SHOULDN'T MISS SALINAS CONTENDS BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI SAID IN AN INTERVIEW THAT THE NORTH AMERICAN FREE TRADE AGREEMENT IS AN OPPORTUNITY THAT HAPPENS ONCE IN A GENERATION AND HE HOPES THE US CONGRESS IS UP TO ITS HISTORICAL RESPONSIBILITY TO PASS THE TREATY OTHERWISE HE SAID THE US WOULD BE MISSING A CHANCE NOT ONLY TO IMPROVE ITS SOMETIMES TROUBLED RELATIONSHIP WITH MEXICO BUT TO REDEFINE ITS RELATIONS WITH ALL OF LATIN AMERICA WHERE MANY COUNTRIES RESENT HISTORICAL INTERVENTION IN THE REGION BY THE US PRESIDENT SALINAS SITTING IN HIS OFFICE ON THE EDGE OF SPRAWLING CHAPULTEPEC PARK SEEMED DETERMINED ALMOST COMBATIVE AS HE INDICATED HE HAD GIVEN AS MUCH GROUND AS HE COULD ON NAFTA WHILE THERE IS CONSIDERABLE SENTIMENT IN THE US THAT MEXICO WILL BENEFIT HEAVILY FROM THE TREATY AND SHOULD BE GRATEFUL FOR IT MANY MEXICANS FEEL THAT THEY'VE BEEN PUSHED AROUND AS THE NEGOTIATIONS HAVE UNFOLDED THEY DIDN'T JUST HAVE TO NEGOTIATE THE TREATY ONCE WITH THE BUSH ADMINISTRATION BUT HAD TO THEN GIVE GROUND IN THE TALKS ON THE RECENTLY COMPLETED PARALLEL AGREEMENTS WHILE OFFICIALS IN WASHINGTON HAVE SAID THEY MIGHT TRY TO ADD LANGUAGE TO US LEGISLATION THAT WOULD LET THE US PULL OUT OF THE TRADE AGREEMENT IF MEXICO DIDN'T MAKE ENOUGH PROGRESS IN INCREASING ITS WORKERS' WAGES PRESIDENT SALINAS REJECTED THAT POSSIBILITY OUT OF HAND I THINK IT WOULD BE VERY UNWISE TO DO SOMETHING LIKE THAT HE SAID HALFJOKINGLY BECAUSE MEXICO WHICH HAS A BUDGET SURPLUS MIGHT TRY TO PROMOTE LANGUAGE THAT STATES THAT THE US NEEDS TO DO SOMETHING ABOUT ITS BUDGET DEFICIT HE QUICKLY ADDED THAT PRESIDENT CLINTON WITH WHOM HE HAS A GOOD RELATIONSHIP HAS MADE AN IMPRESSIVE EFFORT TO TACKLE THE US DEFICIT BUT SAID LET'S GIVE EACH COUNTRY ITS OWN RESPONSIBILITY IN MANAGING ITS OWN DOMESTIC RESPONSIBILITIES NO COUNTRY NEEDS TO HAVE ANOTHER TELLING IT WHAT TO DO PRESIDENT SALINAS DID SAY HE WOULD CONTINUE WITH SEVERAL EFFORTS TO REFORM THE MEXICAN ECONOMY IN CONFORMITY WITH NAFTA FOR ONE HE SAID HE WOULD SOON ANNOUNCE DETAILS OF A PLAN TO LINK AVERAGED PRODUCTIVITY TO AN INCREASE IN MEXICO'S MINIMUM WAGE WHICH SHOULD AMELIORATE SOME OF THE CONCERNS IN THE US ABOUT JOBS BEING EXPORTED TO MEXICO AS EMPLOYERS SEARCH FOR INEXPENSIVE WORKERS HE SAID HE WOULD ALSO SOON UNVEIL A BILL TO MAKE MEXICO MORE INVITING FOR FOREIGN INVESTMENT BY ENACTING LAWS THAT MAKE CLEAR WHAT INVESTORS NEED TO DO SOME INVESTORS HAVE SHIED AWAY FROM MEXICO BECAUSE OF UNCERTAINTY ABOUT HOW THEY WOULD BE TREATED MEXICAN GOVERNMENT OFFICIALS ALSO SAY PRESIDENT SALINAS MIGHT INVITE THE INTERNATIONAL LABOR ORGANIZATION TO VISIT MEXICO AND EVALUATE ITS ENFORCEMENT OF LABOR LAWS THE PURPOSE WOULD BE PARTLY TO DEFUSE CONCERNS IN THE US ABOUT COMPANIES POSSIBLY MOVING JOBS TO MEXICO TO AVOID THE EXPENSE OF COMPLYING WITH US LAWS ON CHILD LABOR SAFETY AND SO ON PRESIDENT SALINAS SAID HE IS TAKING NUMEROUS STEPS TO ENSURE THAT MEXICO'S PRESIDENTIAL ELECTIONS A YEAR FROM NOW ARE FREE FROM FRAUD THOSE STEPS WHILE MAINLY AIMED AT HIS DOMESTIC AUDIENCE WOULD ALSO EASE CONCERNS IN THE US ABOUT WHETHER MEXICO WAS REFORMING ITS POLITICAL PROCESS TO AVOID THE WIDESPREAD CORRUPTION THAT MARKED PAST ELECTIONS MEXICO HAS ALREADY SPENT 2 BILLION TO PROVIDE PHOTO ID CARDS FOR MEXICAN VOTERS AND TO CLEAN UP THE REGISTER OF VOTERS PRESIDENT SALINAS SAID THE COST IS HUGE HE SAID HE ALSO POINTED TO A BILL THAT WILL BE ACTED ON SOON IN THE MEXICAN CONGRESS THAT LIKELY WILL CAP CAMPAIGN SPENDING AND THAT COULD GIVE MINORITY PARTIES STRONGER REPRESENTATION IN CONGRESS IN ADDITION HE SAID THE PRESIDENTIAL VOTING NEXT YEAR WILL INVOLVE EXIT POLLING AND QUICK COUNTS OF BALLOTS AS A WAY OF PROVIDING TIMELY INFORMATION ON THE ELECTIONS AND REDUCING CHANCES OF BALLOT TAMPERING PRESIDENT SALINAS SAID HE WON'T BE INVOLVED IN LOBBYING IN THE US TO GET NAFTA APPROVED BUT DID SAY HE'LL SOON MAKE A SPEECH IN SAN FRANCISCO IN WHICH HE'LL TALK ABOUT HOW HE THINKS NAFTA WILL REDUCE MEXICAN MIGRATION TO THE US I DON'T WANT ANY MORE MIGRATION OF MEXICANS TO THE US ESPECIALLY THOSE MIGRANTS WHO ARE VERY COURAGEOUS AND TAKE IMPRESSIVE RISK IN GOING TO THE US LOOKING FOR JOBS HE SAID THAT IS THE PRECISELY THE KIND OF PERSON I WANT HERE 9308190106 930819 COMMODITIES OIL PRICES FALL AS FORECAST OF WEAKER DEMAND FOR US GASOLINE CAUSES TRADERS TO SHIFT VIEWS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES FELL ON A NEAR COLLAPSE OF US GASOLINE FUTURES IN HEAVY TRADING AFTER OILMARKET PARTICIPANTS REVERSED SOME PRIOR PERCEPTIONS OF THE STRENGTH OF US GASOLINE DEMAND THE FUTURES PRICE OF UNLEADED MOTOR FUEL FOR SEPTEMBER DELIVERY PLUNGED 168 CENTS A GALLON SEPTEMBER GASOLINE SETTLED AT 541 CENTS A GALLON ON THE NEW YORK MERCANTILE EXCHANGE THAT WAS ABOUT WHERE IT WAS BEFORE A RALLY LAST WEEK SENT IT SURGING MORE THAN FOUR CENTS A GALLON LIFTING OIL PRICES WORLDWIDE IN THE PROCESS BUT JUST AS ITS RISE LAST WEEK HAD FIRMED UP CRUDE OIL AND OTHER FUELS GASOLINE'S FALL YESTERDAY HELPED TO PULL DOWN PETROLEUM PRICES WORLDWIDE ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR SEPTEMBER DELIVERY DROPPED 26 CENTS TO SETTLE AT 1766 A BARREL SOME VOLATILITY WAS ADDED TO THE SEPTEMBER CONTRACT BECAUSE OF ITS PENDING EXPIRATION TOMORROW BUT OCTOBER CRUDE ALSO DROPPED 22 CENTS TO 1813 A BARREL AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED LOWER WITH THE OCTOBER CONTRACT DOWN 13 CENTS TO 1696 A BARREL NATURAL GAS WAS THE CONTRARIAN IN US FUTURES TRADING YESTERDAY THAT WAS DUE IN PART TO THE HEAT WAVE GRIPPING MUCH OF THE US MORE GAS LIKELY WILL BE USED TO GENERATE ELECTRICITY FOR AIR CONDITIONING AS A RESULT THE FUTURES PRICE OF SEPTEMBER GAS ROSE SIX CENTS TO SETTLE AT 241 A MILLION BRITISH THERMAL UNITS TRADERS GENERALLY CITED WEEKLY FUEL INVENTORY FIGURES RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE AS THE CATALYST IN THE GASOLINE TURNABOUT JUST AS THE WEEKEARLIER API FIGURES HAD HELPED TO TRIGGER THE FUEL'S RALLY THE RALLY BEGAN LAST WEEK AFTER THE API REPORTED A SURPRISING DECLINE OF 66 MILLION BARRELS IN US INVENTORIES OF GASOLINE THEN THIS WEEK THE API'S LATEST TALLY OF GASOLINE INVENTORIES SHOWED ANOTHER DECREASE BUT ONLY BY 13 MILLION BARRELS THAT WAS WELL BELOW MARKET EXPECTATIONS FOR THE SHRINKING OF FUEL INVENTORIES AS THE TRADITIONAL DRIVING SEASON NEARS ITS LABOR DAY END PEOPLE HAD EXPECTED WE WOULD HAVE A MORE SUBSTANTIAL DRAWDOWN THAN THAT SAID JOHN HILL A VICE PRESIDENT WITH THE MERRILL LYNCH ENERGY TRADING DESK IN NEW YORK THE API'S WEEKLY REPORT WAS RELEASED AS USUAL TUESDAY EVENING AFTER OFFICIAL TRADING HOURS BUT COMPUTERBASED TRADING CONTINUES ON INTO THE NIGHT AND GASOLINE PRICES BEGAN DROPPING IMMEDIATELY AFTER THE API'S INVENTORY FIGURES BECAME KNOWN IN FACT ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT FUTURES TRADING HIT A RECORD ON THE NEW YORK MERCANTILE EXCHANGE'S OVERNIGHT ACCESS TRADING SYSTEM TUESDAY NIGHT THE SELLING OF GASOLINE FUTURES GATHERED MOMENTUM YESTERDAY DURING REGULAR TRADING HOURS AFTER FALLING PRICES HIT SOCALLED SELLSTOPS ONE SUCH PSYCHOLOGICALLY IMPORTANT LEVEL WAS 545 CENTS A GALLON BEFORE RECOVERING TO THE 541CENT CLOSE SEPTEMBER GASOLINE HIT A LOW FOR THE DAY OF 5375 CENTS A GALLON DESPITE THE FALL IN GASOLINE PRICES A RENEWAL OF BEARISH SENTIMENT HASN'T PERVADED THE OIL MARKETS MR HILL OF MERRILL LYNCH SUGGESTED THAT AFTER THE FRIDAY EXPIRATION OF THE SEPTEMBER CRUDE CONTRACT IN US FUTURES TRADING THERE COULD BE A GENERAL FIRMING OF PRICES WE ARE A LITTLE CLOSER TO THE BOTTOM AND THE FOCUS NOW WILL BE ON HEATING OIL HE SAID ALSO MANY STILL HAVEN'T WRITTEN GASOLINE OFF IN RELEASING ITS MONTHLY STATISTICAL REPORT FOR JULY YESTERDAY THE AMERICAN PETROLEUM INSTITUTE CONFIRMED ITS EARLIER INSISTENCE THAT GASOLINE DEMAND REMAINED SLUGGISH DESPITE SOME OF THE MORE BULLISH INTERPRETATIONS OF ITS WEEKLY INVENTORY DATA BUT IT ALSO CITED RECENT DATA ON MILES TRAVELED WHICH INDICATE CONTINUED MODERATE GROWTH IN UNDERLYING DEMAND FOR MOTOR FUEL ALSO ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO ANALYZES API FIGURES FOR HIS CLIENTS SAID THAT WE STILL ARE IN A SITUATION WHERE GASOLINE DEMAND IS EXCEEDING SUPPLY AND WE WILL SEE AN INCREASINGLY TIGHTER GASOLINE MARKET IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES FIRMED ON THE BACK OF A WEAKER DOLLAR EVERYBODY'S WATCHING TO SEE WHAT HAPPENS IN THE CURRENCY MARKETS SAID IAN MACDONALD CHIEF PRECIOUS METALS TRADER FOR CREDIT SUISSE IN NEW YORK THE YEN'S GROWING STRENGTH AGAINST THE DOLLAR IS MAKING GOLD WHICH IS PRICED IN DOLLARS INCREASINGLY ATTRACTIVE TO JAPANESE INVESTORS HE SAID MOREOVER GOLD IS BENEFITING FROM CONTINUED UNCERTAINTY ABOUT OTHER WEAK CURRENCIES INCLUDING SEVERAL WITHIN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY CLIMBED 260 TO SETTLE AT 37750 AN OUNCE MR MACDONALD PREDICTED THAT GOLD PRICES WOULD CONTINUE TO BE VOLATILE TRADING IN A RANGE BETWEEN 367 AND 385 OVER THE NEXT FEW WEEKS WE'RE STILL VERY MUCH IN A CONSOLIDATION PERIOD WHICH WILL PROBABLY GO ON FOR THE REMAINDER OF THE MONTH OTHER PRECIOUS METALS FUTURES PRICES ROSE SILVER FOR DECEMBER DELIVERY EDGED UP A HALF CENT TO 4755 AN OUNCE ON THE COMEX PLATINUM FOR OCTOBER DELIVERY JUMPED 280 TO 39140 AN OUNCE WHILE PALLADIUM FOR DECEMBER DELIVERY INCHED UP 10 CENTS TO 13750 ON THE NEW YORK MERCANTILE EXCHANGE GRAINS AND SOYBEANS WHEAT FUTURES PRICES RETREATED ON PROFITTAKING AFTER TWO CONSECUTIVE DAYS OF GAINS CONCERNS ABOUT AN OUTBREAK OF VOMITOXIN A MOLD THAT INFESTS WHEAT PLANTS HAD DRIVEN FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE ON MONDAY AND TUESDAY PRODUCED BY A FUNGUS THAT FLOURISHES IN UNUSUALLY WET AND COOL WEATHER VOMITOXIN HAS BEEN FOUND IN FIELDS IN SOME NORTHERN MIDWEST STATES YET TRADERS CONCLUDED YESTERDAY THAT THE MARKET HAD OVERBOUGHT ON THE NEWS AND SOLD FUTURES CONTRACTS IN HEAVY VOLUME WHEAT FOR DECEMBER DELIVERY WAS DOWN 675 CENTS TO 31575 A BUSHEL 9308190105 930819 INTERNATIONAL NEWS CORP APPOINTS GRIFFITHS TO POSITION AT STAR TV OPERATION HONG KONG RUPERT MURDOCH CHOSE JAMES F GRIFFITHS A 39YEAROLD US TELEVISION EXECUTIVE TO BE THE MANAGING DIRECTOR OF STAR TV ASIA'S DOMINANT SATELLITE BROADCASTER MR GRIFFITHS SUCCEEDS JULIAN MOUNTER WHO RESIGNED THIS MONTH IN THE WAKE OF NEWS CORP'S PURCHASE OF A CONTROLLING STAKE IN THE FLEDGLING NETWORK NEWS CORP PURCHASED 636 OF STAR TV THREE WEEKS AGO FROM ITS FOUNDERS HONG KONGLISTED HUTCHISON WHAMPOA LTD AND THE FAMILY OF LI KASHING MR MURDOCH IS CHAIRMAN AND CHIEF EXECUTIVE OF NEWS CORP MR GRIFFITHS WILL LEAVE HIS JOB AS PRESIDENT OF PAYTV AND INTERNATIONAL HOME VIDEO FOR TWENTIETH CENTURY FOX A DIVISION OF NEWS CORP TO TAKE UP HIS NEW POST HE JOINED NEWS CORP'S TWENTIETH CENTURY FOX FILM DIVISION IN 1988 FROM PAYTV SERVICE HOME BOX OFFICE A UNIT OF TIME WARNER INC SINCE THEN HE HAS HELD A VARIETY OF STRATEGIC AND OPERATIONS POSTS WITHIN FOX'S VARIOUS PAYTV AND HOMEVIDEO BUSINESSES HE ACCEPTED HIS LATEST JOB AT FOX ONLY IN MARCH 9308190104 930819 MARKETING & MEDIA AT&T CREDIT CARDS TO BE OFFERED FREE TO COLLEGE STUDENTS NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL OFFER COLLEGE STUDENTS A FREEFORLIFE CREDIT CARD AT&T SAID IT WILL SEND INFORMATION TO QUALIFYING STUDENTS AT MORE THAN 550 US COLLEGES AND UNIVERSITIES THE AT&T UNIVERSAL CARD BEING OFFERED TO STUDENTS IS A LOWINTERESTRATE MASTERCARD WITH NO ANNUAL FEE ACCESS TO AUTOMATED TELLER MACHINES AND A FEATURE TO MAKE LONGDISTANCE TELEPHONE CALLS AT&T SAID THE NEW CARD MEMBERS WILL BE GRANTED LIMITED LINES OF CREDIT AND WILL BE REQUIRED TO MAKE MONTHLY MINIMUM PAYMENTS HIGHER THAN THE AMOUNT PAID BY REGULAR CARD HOLDERS AT&T OFFERED ITS UNIVERSAL CARD ON A NOFEELIFETIME BASIS TO CUSTOMERS FOR ABOUT A YEAR WHEN IT WAS FIRST INTRODUCED IN MARCH 1990 THE COMPANY HAS SUBSEQUENTLY MADE SIMILAR OFFERS TO TARGETED CUSTOMERS IN SOME DIRECTMAIL SOLICITATIONS AND CURRENTLY TO CUSTOMERS WHO TRANSFER CREDIT BALANCES FROM OTHER CARDS AT&T WHICH CURRENTLY HAS MORE THAN 16 MILLION CARDS OUTSTANDING SEES THE COLLEGE MARKET AS A VERY LUCRATIVE MARKET A SPOKESWOMAN SAID WE ARE INTERESTED IN BUILDING BRAND LOYALTY TO THE AT&T NAME WITH STUDENTS JUST BEGINNING TO MAKE THEIR WAY IN THE WORLD THE COMPANY SAID IT ALSO WILL PROVIDE COLLEGE CUSTOMERS WITH ADVICE ON RESPONSIBLE USE OF CREDIT CARDS 9308190103 930819 TECHNOLOGY AT&T TO CLOSE NEARLY A THIRD OF OPERATOR CENTERS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO IN A CONTINUING PUSH TO REPLACE LIVE OPERATORS WITH COMPUTERIZED SERVICES SAID IT WILL CLOSE 40 OFFICES OR ALMOST A THIRD OF ITS OPERATOR CENTERS NATIONWIDE FOR AN ANNUAL SAVING OF ABOUT 200 MILLION THE TELECOMMUNICATIONS GIANT PLANS TO PHASE OUT BETWEEN 3000 AND 4000 OPERATOR JOBS AND ELIMINATE 200 TO 300 MANAGER POSITIONS BETWEEN THE SECOND QUARTER OF 1994 AND EARLY 1995 THE OPERATORS WILL BE REPLACED BY A COMPUTERIZED VOICE RECOGNITION TECHNOLOGY DEVELOPED BY AT&T BELL LABORATORIES THAT RECOGNIZES AND RESPONDS TO A HUMAN VOICE MORE THAN HALF THE EMPLOYEES AFFECTED ARE EXPECTED TO FIND NEW JOBS WITHIN AT&T BY EARLY 1995 THE COMPANY WILL REDUCE THE NUMBER OF ITS OPERATOR OFFICES TO 71 FROM ITS CURRENT 138 THE RESTRUCTURING REFLECTS CUSTOMER PREFERENCE FOR TODAY'S EXPANDING RANGE OF CALLING OPTIONS INCLUDING SPEECH RECOGNITION SYSTEMS MESSAGING SERVICES AND CALLING CARDS AS WELL AS DIALING DIRECT SAID DANA BECKER DUNN VICE PRESIDENT OF AT&T CALL SERVICING THE COMPANY SAID ABOUT 95 OF ALL LONG DISTANCE CALLS ARE MADE WITHOUT AN OPERATOR AND THE NUMBER OF OPERATORASSISTED CALLS HAS BEEN DECLINING BY ABOUT 8 A YEAR OPERATORS WHO AREN'T REHIRED BY AT&T CAN CHOOSE BETWEEN VARIOUS OPTIONS INCLUDING SEVERANCE PACKAGES OF UP TO 104 WEEKS OF PAY COMPANYPAID RETRAINING AND EXTENDED LEAVES OF ABSENCE AT&T SAID 9308190102 930819 MONEYFUND YIELDS UNCHANGED IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE MOSTLY UNCHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF 607 TAXABLE FUNDS SLIPPED BY 5357 MILLION TO 47268 BILLION THE NEWSLETTER REPORTED INDIVIDUAL INVESTORS ADDED 146 BILLION TO 435 FUNDS WHICH WAS OFFSET BY A 2 BILLION OUTFLOW FROM 172 FUNDS OPEN TO INSTITUTIONAL INVESTORS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 62 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES TO RISE SHARPLY ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 264 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD CREPT UP TO 265 FROM 264 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED UNCHANGED AT 268 YIELDS ON TAXEXEMPT FUNDS FELL SLIGHTLY IN THE LATEST WEEK ALTHOUGH THEY REMAIN ATTRACTIVE FOR INVESTORS IN THE HIGHEST TAX BRACKETS THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE SLIPPED TO 2 FROM 207 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 313 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 331 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 326 TAXFREE FUNDS DECREASED BY 8079 MILLION TO 10208 BILLION ACCORDING TO MONEY FUND REPORT THE TAXEXEMPT FUNDS' AVERAGE PORTFOLIO MATURITY LENGTHENED BY TWO DAYS TO 67 DAYS 9308190101 930819 POLITICS & POLICY US FINES COAL COMPANY 439172 FOR VIRGINIA EXPLOSION THAT KILLED 8 BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MINE SAFETY AND HEALTH ADMINISTRATION FINED A NORTON VA COAL MINE OPERATOR 439172 FOR VIOLATIONS THE AGENCY FOUND IN CONNECTION WITH AN EXPLOSION THAT KILLED EIGHT MINERS IN DECEMBER THE FINE AGAINST SOUTHMOUNTAIN COAL CO AND WILLIAM ELKINS IS THE MAXIMUM ALLOWED FOR THE EIGHT MINE VIOLATIONS UNCOVERED BUT SOME SAFETY EXPERTS THINK THAT ISN'T NEARLY TOUGH ENOUGH IT DOES CAUSE YOU TO STOP AND THINK ABOUT WHAT KINDS OF PENALTIES ARE IMPOSED FOR THESE VIOLATIONS VS OTHER VIOLATIONS THAT DON'T HAVE IMPACT ON PEOPLES' LIVES SAID PEG SEMINARIO DIRECTOR OF HEALTH AND SAFETY FOR THE AFLCIO THERE IS A REAL DISCREPANCY OF WORKPLACE VIOLATIONS AS COMPARED WITH VIOLATIONS UNDER OTHER STATUTES IN A RELATED AREA THE AFLCIO POINTS OUT FOR EXAMPLE THAT THE MAXIMUM CRIMINAL PENALTY FOR EMPLOYERS WHO WILLFULLY VIOLATE A FEDERAL OCCUPATIONAL SAFETY STANDARD RESULTING IN THE DEATH OF A WORKER IS SIX MONTHS IN JAIL THAT COMPARES WITH 15 YEARS IN JAIL FOR AN ENVIRONMENTAL VIOLATION THAT RESULTS IN A DEATH BUT ABDUL KHAIR A MINING PROFESSOR AT WEST VIRGINIA UNIVERSITY AT MORGANTOWN COUNTERS THAT NO BUSINESS OWNER ATTEMPTS TO SET UP AN UNSAFE ENVIRONMENT TO INJURE OR KILL A WORKER THE SAFEST OPERATION IS THE MOST COSTEFFECTIVE HE SAID HENRY CHAJET THE LAWYER FOR SOUTHMOUNTAIN CALLED THE ACCIDENT A TRAGEDY THAT THE COMPANY AND ITS EMPLOYEES TRIED HARD TO PREVENT HE SAID MINE INSPECTORS VISITED THE SITE A WEEK BEFORE THE ACCIDENT AND FOUND IT TO BE SAFE AND WELLVENTILATED THE CASE IS NOT AS ONESIDED AS THE PRESS RELEASES WOULD MAKE IT SEEM HE SAID MR ELKINS IS BEING CHARGED BY THE GOVERNMENT AS AN OPERATOR OF THE MINE WHICH MAKES HIM RESPONSIBLE FOR THE SAFETY OF THE WORKERS THE LAWYER FOR MR ELKINS JEFFREY STURGILL ARGUED IN DOCUMENTS THAT HIS CLIENT WAS ONLY AN AGENT OR CONSULTANT FOR THE MINE MEANING THAT THE GOVERNMENT WOULD HAVE TO SHOW THAT HE WILLFULLY ENDANGERED THE SAFETY OF WORKERS MR STURGILL COULDN'T BE REACHED FOR COMMENT LABOR DEPARTMENT LAWYERS HAVE PASSED INFORMATION ON THE CASE OVER TO THE US ATTORNEY'S OFFICE IN ROANOKE VA WHICH IS WEIGHING CRIMINAL CHARGES AGAINST THE COMPANY SAID EDWARD CLAIR ASSOCIATE SOLICITOR FOR MINE SAFETY AND HEALTH THE MINE SAFETY AGENCY FOUND VIOLATIONS CAUSED BY A HIGH DEGREE OF NEGLIGENCE AND IN SEVERAL INSTANCES RECKLESS DISREGARD FOR THE NATION'S MINING LAWS SAID EDWARD HUGLER ACTING ASSISTANT SECRETARY OF LABOR FOR MINE SAFETY AND HEALTH IN ITS MAY REPORT ON THE ACCIDENT THE AGENCY'S INVESTIGATORS FOUND THAT INSUFFICIENT VENTILATION IN THE MINE LED TO A BUILDUP OF METHANE GAS COMPANY OFFICIALS FAILED TO DETECT THE BUILDUP BECAUSE OF INADEQUATE EXAMINATIONS THE REPORT SAID A CIGARETTE LIGHTER SET OFF THE METHANE EXPLOSION INSPECTORS SAID 9308190100 930819 BUSINESS BRIEF SCANDINAVIAN AIRLINES SYSTEM THREENATION AIRLINE POSTS PRETAX LOSS FOR FIRST HALF SCANDINAVIAN AIRLINES SYSTEM AN AIRLINE CARRIER JOINTLY OWNED BY SWEDEN DENMARK AND NORWAY HAD A FIRSTHALF PRETAX LOSS AFTER FINANCIAL ITEMS OF 609 MILLION SWEDISH KRONOR 758 MILLION INCREASED FINANCIAL CHARGES WERE CITED A YEAR EARLIER PRETAX PROFIT TOTALED 502 MILLION KRONOR REVENUE ROSE 17 TO 1896 BILLION KRONOR THE AIRLINE CARRIER WHOSE ACTIVITIES ALSO INCLUDE HOTELS CHARTER OPERATIONS AND CATERING SERVICES CHARGED 109 BILLION KRONOR AGAINST EARNINGS TO COVER FINANCIAL CHARGES IN THE PERIOD UP FROM 224 MILLION KRONOR THE YEAR EARLIER SAS SAID THE INCREASE WAS DUE TO THE WEAKENING OF THE SWEDISH KRONA HIGHER INTERESTRATE COSTS AND INCREASED DEBT FURTHERMORE SAS SAID THE FIERCE COMPETITION IN THE AIRLINE BUSINESS HAS PREVENTED IT FROM INCREASING FARES TO COMPENSATE FOR THE KRONA'S DEPRECIATION THE DEPRESSED INTERNATIONAL AIRLINE MARKET SHOWED SIGNS OF RECOVERY IN TRAFFIC VOLUME BUT SWEDEN THE AIRLINE'S MOST IMPORTANT MARKET REMAINED STAGNANT SAS SAID 9308190099 930819 TREASURY TO SELL NOTES AND RAISE FRESH CASH WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 1388 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 16 BILLION OF TWOYEAR NOTES TUESDAY AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1312 BILLION IN MATURING TWOYEAR AND FIVEYEAR NOTES THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827L91 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827M25 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9308190098 930819 FIRSTFED MICHIGAN DECLARES STOCK SPLIT AND DIVIDEND INCREASE DETROIT FIRSTFED MICHIGAN CORP DECLARED A 3FOR2 STOCK SPLIT OF ITS COMMON STOCK AND A 58 INCREASE IN ITS QUARTERLY CASH DIVIDEND THE ADDITIONAL SHARES AND THE DIVIDEND ARE BOTH PAYABLE ON SEPT 20 TO STOCK OF RECORD ON SEPT 1 AS A RESULT OF THE SPLIT WHICH IS IN THE FORM OF A 50 STOCK DIVIDEND EACH STOCKHOLDER WILL RECEIVE ONE ADDITIONAL SHARE OF COMMON STOCK FOR EVERY TWO SHARES OWNED AS OF SEPT 1 FIRSTFED CURRENTLY HAS 124 MILLION COMMON SHARES OUTSTANDING ON SEPT 20 AFTER THE SPLIT IS EFFECTIVE THE OUTSTANDING COMMON STOCK WILL INCREASE TO 186 MILLION SHARES ON A PRESPLIT BASIS THE NEW QUARTERLY CASH DIVIDEND RATE WOULD HAVE BEEN 18 CENTS A SHARE UP 58 FROM THE 17 CENTS A SHARE DECLARED IN THE PREVIOUS TWO QUARTERS BECAUSE OF THE STOCK SPLIT A 12CENTASHARE CASH DIVIDEND WILL BE PAID ON ALL OUTSTANDING SHARES OF COMMON STOCK AFTER THE SPLIT 9308190097 930819 WHO'S NEWS ADVANCED PHOTONIX INC ADVANCED PHOTONIX INC CAMARILLO CALIF PATRICK J HOLMES WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS MAKER OF SOLIDSTATE SILICON PHOTO DETECTION DEVICES SUCCEEDING DENA COEHLCO 32 YEARS OLD WHO RESIGNED MR HOLMES 47 PREVIOUSLY WAS CONTROLLER OF HR TEXTRON 9308190096 930819 AIR CANADA OFFERS TO BUY ROUTES FROM CANADIAN AIR BY CHRISTOPHER J CHIPELLO AND MICHAEL T MALLOY STAFF REPORTERS OF THE WALL STREET JOURNAL AIR CANADA IN A NEW GAMBIT TO FORESTALL RIVAL CANADIAN AIRLINES' PROPOSED TIEUP WITH AMR CORP OFFERED TO BUY CANADIAN'S INTERNATIONAL ROUTES FOR 200 MILLION CANADIAN DOLLARS US152 MILLION THE OFFER WASN'T RECEIVED WARMLY RHYS EYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PWA CORP CANADIAN'S PARENT CALLED THE OFFER A DIABOLICAL PLOT TO KILL CANADIAN AIRLINES AND DUPE THE CANADIAN PUBLIC AIR CANADA OFFICIALS DIDN'T HIDE THE OFFER'S POLITICAL IMPLICATIONS HOLLIS HARRIS CHAIRMAN AND CHIEF EXECUTIVE OF THE MONTREAL AIRLINE TOLD REPORTERS HE HOPED THE PROPOSAL WOULD PREVENT THE BITTER FIGHT BETWEEN CANADA'S TWO INTERNATIONAL CARRIERS FROM BECOMING AN ISSUE IN NATIONAL ELECTIONS EXPECTED TO BE HELD THIS FALL PWA OFFICIALS HAVE WARNED THAT FAILURE TO WIN AMR'S PROPOSED C246 MILLION EQUITY INVESTMENT IN CANADIAN BY THE END OF THIS YEAR COULD FORCE THE CALGARY ALBERTA AIRLINE INTO BANKRUPTCY AMR'S INVESTMENT IS CONTINGENT ON CANADIAN'S SHIFTING ITS INTERNAL RESERVATION SYSTEM TO AMR'S NETWORK FROM THE GEMINI SYSTEM THAT PWA NOW SHARES WITH AIR CANADA BUT PWA IS BOGGED DOWN IN A COMPLEX LEGAL FIGHT TO BREAK FREE OF ITS COMMITMENT TO GEMINI SO PWA HAS CALLED ON THE GOVERNMENT TO INTERVENE IN ORDER TO PRESERVE COMPETITION IN CANADA'S AIRLINE INDUSTRY THERE IS AN ALTERNATIVE TO THE AMR RESCUE SAID AIR CANADA'S MR HARRIS WE WANT THE FEDERAL GOVERNMENT TO KNOW THAT HE SAID THE AIR CANADA PLAN PRESERVES DOMESTIC COMPETITION MINIMIZES JOB LOSSES SAVES GEMINI AND CREATES A SINGLE INTERNATIONAL AIRLINE THAT CAN COMPETE ON A WORLD SCALE AS OUTLINED BY MR HARRIS AIR CANADA'S OFFER INCLUDES C200 MILLION IN CASH FOR ALL OF CANADIAN AIRLINES' INTERNATIONAL ROUTES AIR CANADA WOULD ALSO ASSUME DEBT AND LEASE OBLIGATIONS WORTH C800 MILLION FOR EIGHT AIRCRAFT USED ON THE ROUTES AND WOULD OFFER JOBS TO CREW MEMBERS AFFECTED BY THE ACQUISITION BUT PWA SAID THAT AFTER SUBTRACTING ADVANCE TICKET SALES AND OTHER OBLIGATIONS CANADIAN WOULD BE LEFT WITH LESS THAN C40 MILLION IN CASH THE AIRLINE ALSO WOULD BE SADDLED WITH 10 WIDEBODIED AIRCRAFT THAT IT CAN'T OPERATE DOMESTICALLY PWA SAID AT A NEWS CONFERENCE IN TORONTO MR EYTON SAID HE BELIEVED AIR CANADA'S OFFER WAS AIMED AT INFLUENCING A HANDFUL OF PWA SENIOR CREDITORS IN JAPAN WHO HAVEN'T YET AGREED TO THE COMPANY'S FINANCIAL RESTRUCTURING PLAN HE SAID IT APPEARED TO BE AN ATTEMPT TO KILL THE RESTRUCTURING BY MAKING THE CREDITORS WONDER IF THEY MIGHT BE BETTER OFF WITH AIR CANADA OPERATING THE PLANES TO WHICH THEY HAVE CLAIMS PWA IS TRYING TO GET ALL THE SENIOR CREDITORS IN AGREEMENT BY NEXT WEEK AHEAD OF VOTES ON AUG 27 BY SHAREHOLDERS AND DEBENTURE HOLDERS MR EYTON SAID IN TRADING ON THE TORONTO STOCK EXCHANGE PWA'S STOCK CLOSED AT 62 CANADIAN CENTS 47 US CENTS A SHARE UNCHANGED AIR CANADA SHARES CLOSED AT C490 US373 UP 30 CANADIAN CENTS 9308190095 930819 INTERNATIONAL PHILIPS OFFICIAL CALLS DCC LAUNCH FLAWED VOWS DIVISION COMEBACK BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL EINDHOVEN THE NETHERLANDS A TOP PHILIPS ELECTRONICS NV EXECUTIVE EXPRESSED DISSATISFACTION WITH HIS COMPANY'S PERFORMANCE SO FAR IN A GLOBAL MARKETING BATTLE BETWEEN NEW DIGITAL MUSIC SYSTEMS BUT HE VOWED A COMEBACK NEXT MONTH WHEN A NEW LINE OF PRODUCTS HITS THE MARKET HENK BODT HEAD OF PHILIPS'S CONSUMER ELECTRONICS BUSINESS SAID I'M NOT COMPLETELY SATISFIED WITH THE LAUNCH EARLIER THIS YEAR OF HIS COMPANY'S NEW DIGITAL COMPACT CASSETTE SYSTEM WHICH BRINGS COMPACT DISKSTYLE SOUND TO TAPE CASSETTES WITHOUT CONFIRMING OR DENYING THEM HE DISMISSED AS INSIGNIFICANT REPORTS THAT IN THE FIRST FEW MONTHS OF SALE IN THE US A RIVAL SONY CORP SYSTEM WAS OUTSELLING PHILIPS'S DCC ABOUT TWO TO ONE REGARDLESS HE SAID WE THINK WE WILL HAVE TO SPEED UP THE MARKETING EFFORT FOR DCC MR BODT'S COMMENTS TO A SMALL GATHERING OF JOURNALISTS AT PHILIPS HEADQUARTERS HERE SUPPORT WHAT FOLLOWERS OF THIS INTENSE CONSUMERMARKETING WAR HAVE BEEN SAYING FOR WEEKS BUT PHILIPS HAS BEEN PUBLICLY REFUTING THAT SONY WON THE FIRST ROUND OF A LONG COSTLY MARKETING FACEOFF WITH PHILIPS BOTH COMPANIES HAVE INVESTED MILLIONS OF DOLLARS IN PROMOTING THEIR SYSTEMS AS THE NEXTGENERATION HIFI PHILIPS'S DCC PLAYERS USE NEW DIGITALSOUND TAPE CASSETTES AS WELL AS CONVENTIONAL ANALOGUE CASSETTES AND ARE BILLED AS SUCCESSORS TO TODAY'S STANDARD CASSETTE DECKS SONY'S MINIDISK PLAYERS USE MINIATURE CDS AND ARE DIGITAL DESCENDANTS OF SONY'S WALKMAN PORTABLE TAPE PLAYERS DCC'S FORTUNES ARE CRITICAL TO PHILIPS EUROPE'S LARGEST CONSUMER ELECTRONICS COMPANY AND THE INVENTOR OF BOTH THE ORIGINAL ANALOG TAPE CASSETTE AND THE COMPACT DISK PLAYER IT'S ONE OF TWO NEW DIGITAL PRODUCT FAMILIES THAT PHILIPS IS HOPING TO MAKE INTO CONSUMER BLOCKBUSTERS OVER THE NEXT FIVE YEARS GIVING NEW LIFE TO PHILIPS'S CONSUMER ELECTRONICS DIVISION THE OTHER PRODUCT IS CDI FOR COMPACT DISK INTERACTIVE A DIGITAL VIDEO SYSTEM THAT APPLIES CD TECHNOLOGY TO HOME VIDEO GAMES MOVIES AND OTHER TVBASED SOFTWARE ACCORDING TO MR BODT'S ANALYSIS PHILIPS'S KEY FLAW SO FAR IN DCC WAS ITS TARDINESS IN GETTING PORTABLE PLAYERS INTO THE MARKET BECAUSE OF TECHNICAL PROBLEMS INCLUDING A SOFTWARE GLITCH THAT EMERGED LAST YEAR AND TOOK TIME TO CORRECT PHILIPS FIRST ENTERED THE MARKET WITH EASIERTODEVELOP HOME TAPEDECK SYSTEMS RATHER THAN THE MINIATURIZED PORTABLE MODELS THAT SONY INTRODUCED AS A RESULT MR BODT SAID DCC HAS COME ACROSS AS AN UPMARKET NICHE PRODUCT FOR WELLHEELED AUDIOPHILES RATHER THAN THE MASSMARKET ITEM PHILIPS HOPES DCC WILL BECOME THE FIRST PORTABLE DCC PLAYERS BECAME AVAILABLE IN SMALL QUANTITIES LAST JUNE IN JAPAN BUT THE MAIN PRODUCT LAUNCHES ARE SCHEDULED FOR NEXT MONTH IN THE US AND EUROPE IN EUROPE PHILIPS PLANS TO START SELLING INTHECAR DCC MODELS AT PRICES RANGING FROM 1500 TO 2000 MARKS 886 TO 1181 AND PORTABLE MODELS FOR ABOUT 900 MARKS AS WITH MOST CONSUMER PRODUCTS THE COMPANY AIMS TO CUT PRICES AS SALES BUILD AND PERUNIT PRODUCTION COSTS FALL REGARDLESS OF DCC'S LONGTERM PROSPECTS MR BODT IS VOWING TO TURN AROUND THE DIVISION WITHIN THE NEXT FEW YEARS SPECIFICALLY HE SAID HIS TARGET IS TO MAKE THE DIVISION BREAK INTO AN OPERATING PROFIT AT SOME POINT DURING 1994 THOUGH HE SAID HE ISN'T PROMISING A PROFIT FOR THE WHOLE YEAR BEYOND THAT HE SAID I CERTAINLY WILL FEEL VERY UNHAPPY IF THE DIVISION'S OPERATING PROFIT DOESN'T REACH 3 TO 4 OF ITS SALES WITHIN THREE YEARS 9308190094 930819 ENTERPRISE CRASH COURSES OFFER QUICK DOSES OF BUSINESS WISDOM BREAK IT GENTLY TO MBA STUDENTS BUT SPEEDY LESSONS CAN BE PROFITABLE BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL CRASH COURSES ON HOW TO START OR EXPAND A BUSINESS ARE INCREASINGLY POPULAR AND MANY PEOPLE ARE USING THE KNOWLEDGE GAINED IN A FEW DAYS OR WEEKS AS A SHORTCUT TO SUCCESS A COURSE IS OFTEN A THRIFTY MOVE AS WELL JUST 68 WILL BUY AN EIGHTHOUR COURSE ON LAUNCHING A MAILORDER BUSINESS AT THE CAMBRIDGE CENTER FOR ADULT EDUCATION IN CAMBRIDGE MASS AND EVEN THE 1020 FEE FOR A SEMESTER OF STUDYING BUSINESS BASICS AT PACE UNIVERSITY'S ADULTEDUCATION PROGRAM IN NEW YORK CITY PALES IN COMPARISON WITH THE COST OF GETTING A MASTER'S DEGREE IN BUSINESS ADMINISTRATION ENTREPRENEUR MARK NOBLIN OF SANTA FE NM SAYS A ONEDAY 25 COURSE AT THE LOCAL COMMUNITY COLLEGE'S BUSINESS CENTER ENABLED HIM TO TURN HIS WIFE'S PARTTIME TOUR BUSINESS FOR TEENAGERS INTO A TRAVEL COMPANY SPECIALIZING IN INCENTIVE TRIPS FOR BIG FIRMS SINCE THE REORGANIZATION LAST YEAR HE SAYS REVENUE AT SOUTHWEST ADVENTURE GROUP INC HAS DOUBLED IT WAS A VERY REALWORLD CLASS SAYS MR NOBLIN A FORMER COMPUTER SALESMAN FOR UNISYS CORP YOU'RE NOT STUDYING THE GROSS NATIONAL PRODUCT OR BUSINESS CYCLES YOU'RE LEARNING HOW TO RUN YOUR SMALL BUSINESS IN HIS CASE HE NEEDED TO KNOW HOW TO DRAW A CASHFLOW CHART TO DETERMINE THE POTENTIAL PROFITS OF RESTRUCTURING I HAD THE WILL AND DESIRE BUT NOT THE KNOWHOW TO TURN MY BUSINESS AROUND HE SAYS MY WIFE AND I CAME FROM STRONG SALES AND MARKETING BACKGROUNDS BUT DIDN'T HAVE THE KNOWLEDGE TO PLAN GROWTH AND CASHFLOW PROJECTIONS SINCE ITS EXPANSION SOUTHWEST ADVENTURE GROUP HAS BOUGHT A PUEBLOTOURING COMPANY AND A RAFTING COMPANY AND OPENED A BRANCH OFFICE IN ALBUQUERQUE NM MR NOBLIN SAYS IT IS CURRENTLY PLANNING TO TAP THE GERMAN MARKET HE ADDS MANY SHORT COURSES CAN BE SUPERFICIAL AND INSTRUCTORS POORLY PREPARED SAY EDUCATORS BUT A GROWING NUMBER OF ENTREPRENEURS HAVE DISCOVERED THE USEFULNESS OF NIGHT CLASSES AND THREEDAY SEMINARS EDUCATORS SAY ENROLLMENT HAS BEEN GROWING SEMESTER BY SEMESTER FOR THE PAST SEVERAL YEARS FIVE TO 10 YEARS AGO IT WAS MOSTLY PEOPLE IN BUSINESS TAKING THESE COURSES TO HELP THEM DO A BETTER JOB OF RUNNING BUSINESSES THEY ALREADY HAD SAYS CHARLES SCHUBBE VICE PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF SMALL BUSINESS MANAGEMENT INSTRUCTORS A TRADE GROUP IN WHITE BEAR LAKE MINN BUT NATIONALLY THESE DAYS THERE ARE PEOPLE OUT THERE WITH GOOD EDUCATIONS AND GOOD BACKGROUNDS WHO ARE BEING LAID OFF BECAUSE OF THE DOWNSIZING OF BIG COMPANIES AND THESE PEOPLE ARE LOOKING FOR ALTERNATIVES AT THE LEARNING ANNEX THE NATION'S LARGEST ADULTEDUCATION COMPANY ENROLLMENT IN BUSINESS COURSES HAS SHOT UP 30 IN THE PAST YEAR ALONE SAYS HARRY JAVER EXECUTIVE DIRECTOR FOR NEW YORK CITY FOR THE LEARNING ANNEX AND AT NEW YORK UNIVERSITY'S DEPARTMENT OF CONTINUING EDUCATION THE SMALLBUSINESS MANAGEMENT AND ENTREPRENEURSHIP COURSES HAVE BEEN FILLING UP QUICKLY WITH PEOPLE TURNED AWAY EVERY SEMESTER BECAUSE OF SPACE LIMITATIONS A SPOKESWOMAN SAYS THE CLASSROOM EXPERIENCE HELPED VINCE FOSTER ANOTHER SANTA FE ENTREPRENEUR CLIMB OUT OF THE ECONOMIC DOLDRUMS A PHOTOGRAPHER STUCK IN A SATURATED MARKET MR FOSTER RESEARCHED THE LOCAL ECONOMY AND FOUND THAT DESKTOP PUBLISHING WAS AN EMPTY NICHE HE COULD FILL WITH HIS BACKGROUND BUT INSTEAD OF FINDING A STOREFRONT AND HANGING A GRANDOPENING BANNER ACROSS THE ENTRANCE HE FIRST TOOK A FIVEWEEK SUMMER COURSE IN ENTREPRENEURSHIP AT SANTA FE COMMUNITY COLLEGE IN 1991 I ALREADY HAD A BUSINESS DEGREE SAYS MR FOSTER WHO ONCE OWNED A PIZZA RESTAURANT BUT I KNEW I WANTED TO GO INTO MY NEW BUSINESS FRESH LIKE A BRANDNEW BABY WITH NO PRESUPPOSITIONS MR FOSTER SAYS THE COURSE REFRESHED HIM ON PRACTICAL ASPECTS OF BUSINESS SUCH AS HANDLING A PAYROLL AND ADVERTISING THAT HE HADN'T DEALT WITH IN 25 YEARS I WENT TO SCHOOL TO CONFIRM THE FACT THAT I WANTED TO OPEN MY OWN BUSINESS HE SAYS A FEW DAYS AFTER THE COURSE ENDED HE WENT TO THE BANK ARMED WITH THE 12PAGE BUSINESS PLAN THAT HE HAD DRAFTED IN CLASS AND APPLIED FOR A LOAN TO COVER STARTUP COSTS HE SAYS TWO MONTHS LATER IN SEPTEMBER 1991 HE OPENED GET TYPE & GRAPHICS INC IT WILL MAKE A PROFIT FOR THE FIRST TIME THIS YEAR ON SALES OF 170000 MR FOSTER SAYS PEOPLE WITH NO BUSINESS BACKGROUND SAY A SHORT STINT IN ACADEMIA CAN MAKE A CRUCIAL DIFFERENCE SHARON DANSBY A HIGHSCHOOL MUSIC TEACHER WANTED TO MARKET TOMATO SAUCE MADE FROM HER HUSBAND'S FAMILY RECIPE SO SHE TOOK AN ENTREPRENEURSHIP COURSE AT A SMALLBUSINESS DEVELOPMENT CENTER IN PURCHASE NY TO FIND OUT HOW TO DO IT SHE SAYS THE COURSE TAUGHT HER SUCH ELEMENTARY POINTERS AS GETTING INFORMATION FROM TRADE PUBLICATIONS AT HER LOCAL LIBRARY AND SEEKING HELP FROM TRADE ORGANIZATIONS ON DEVELOPING MARKETING STRATEGIES SINCE HER BUSINESS SED & DUNN INC OF PORT CHESTER NY SOLD ITS FIRST BOTTLE OF DANSBY'S GOURMET SAUCE THREE YEARS AGO IT HAS ADDED A HOT SAUCE AND HONEY MUSTARD TO ITS LINE MS DANSBY AND HER HUSBAND ALSO A FULLTIME SCHOOL TEACHER RUN THE BUSINESS IN THEIR SPARE TIME I WOULDN'T KNOW HALF THE THINGS I KNOW NOW IF I HADN'T TAKEN THE COURSE MS DANSBY SAYS AMY EPSTEIN ALSO CREDITS A BUSINESS CLASS WITH LAUNCHING HER AS AN ENTREPRENEUR THE FORMER NEW YORK CITY URBAN PLANNER STARTED THE STRAIGHT EDGE INC IN BROOKLYN NY AFTER DESIGNING WHAT SHE CALLS THE PRODUCT THAT THE WORLD WAS WAITING FOR AT THE PARSONS SCHOOL OF DESIGN IN NEW YORK CITY A DECADE AGO THE PRODUCT AN EDUCATIONAL PLACEMAT INSPIRED BY HER FIVEYEAROLD SON'S RESTLESSNESS AT THE DINNER TABLE IS NOW THE CORNERSTONE OF A BUSINESS THAT ALSO MARKETS EDUCATIONAL RUGS BATH PUZZLES AND EDUCATIONAL AUDIO TAPES MS EPSTEIN PROJECTS SALES THIS YEAR OF 4 MILLION THE COURSE IN INDUSTRIAL DESIGN FOCUSED ON PRODUCT DEVELOPMENT WITHOUT IT MS EPSTEIN SAYS SHE WOULD NEVER HAVE DESIGNED THE PLACEMAT OR MUSTERED THE COURAGE TO PUT IT TO THE MARKET TEST INDEED SHE SAYS IT WAS ONLY AFTER A DEPARTMENTSTORE BUYER BROUGHT INTO HER SCHOOL TO JUDGE CLASS PROJECTS TOLD HER THAT HER READ A MAT WAS MARKETABLE THAT SHE DECIDED TO TAKE THE PLUNGE IT WAS VERY ASSURING TO ME TO PASS THAT TEST OF CREDIBILITY FOR THE PRODUCT AT THAT VERY CRITICAL STAGE SHE SAYS THESE COURSES CAN GIVE YOU THAT KIND OF BENCHMARK OF REALITY PUTTING YOUR PRODUCT IN A VERY REAL CONTEXT ALTHOUGH INSTRUCTORS SAY A COURSE IS NO GUARANTEE OF SUCCESS THEY ADD THAT WITH NO PRIOR KNOWLEDGE IT IS POSSIBLE TO LEARN BUSINESS BASICS IN THE CLASSROOM BUSINESS IS BEST LEARNED BY DOING BUT YOU HAVE TO KNOW AND LOVE WHAT YOU'RE DOING TO BE SUCCESSFUL SAYS MEL EPSTEIN A BUSINESS TEACHER WHO HAS TAUGHT AT THE CAMBRIDGE CENTER FOR ADULT EDUCATION AND THE HARVARD EXTENSION SCHOOL IT IS TOUGH TO START YOUR OWN BUSINESS BUT WE'RE NOT TALKING ABOUT CLIMBING MOUNT EVEREST HERE 9308190093 930819 WHO'S NEWS LURIA'S FINANCIAL CHIEF WALLACE RUIZ RESIGNS MIAMI LAKES FLA L LURIA & SON INC SAID ITS CHIEF FINANCIAL OFFICER WALLACE D RUIZ HAS RESIGNED EFFECTIVE AUG 31 TO PURSUE ANOTHER BUSINESS OPPORTUNITY THE RETAILER SAID IT HAS RETAINED A SEARCH FIRM TO FIND A NEW CHIEF FINANCIAL OFFICER IN ADDITION LURIA NAMED THREE NEW EXECUTIVES TO SHIFT THE COMPANY'S FOCUS FROM A CATALOG SHOWROOM CHAIN TO A SPECIALTY DISCOUNT RETAILER THEY ARE JOSEPH F BOMBARA MIDATLANTIC DIVISION PRESIDENT FOR MCCRORY STORES WHO BECOMES VICE PRESIDENT OF STORES AND OPERATIONS TIMOTHY E KEELEY SENIOR REAL ESTATE MANAGER FOR TOYS R US INC WHO BECOMES DIRECTOR OF REAL ESTATE AND RICHARD MARKS VICE PRESIDENT OF JEWELRY MERCHANDISING AT ROSSSIMONS JEWELERS WHO WAS NAMED VICE PRESIDENT OF JEWELRY MERCHANDISING 9308190092 930819 ON THE NEXT OPRAH WOMEN WHO FOUND THEIR MATES ON BILLBOARDS BY SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON LAURA LOMBARDO'S MOM ALWAYS SAID THAT WHEN HER DAUGHTER MET MR RIGHT THERE'D BE A SIGN WELL HE MAY OR MAY NOT BE MR RIGHT BUT IN FACT THERE WAS A BILLBOARD THE BILLBOARD AND THE PUBLICITY IT GENERATED IN THE LOCAL PRESS RESULTED IN RESPONSES FROM ALMOST 800 WOMEN I WASN'T SHOCKED SAYS DAVID MAY WHO SOLD MR MACHMER THE SPACE HE ADDS THAT ABOUT 192000 PEOPLE PASS THE SIGN DAILY MR MACHMER A 39YEAROLD DIVORCED FATHER SAID THE RESPONSE SURE BEAT STRIKING OUT AT SINGLES BARS AND CHURCH SOCIALS EVER THE ROMANTIC THE GRADUATE STUDENT AND FORMER OIL COMPANY RESEARCHER SAYS HE FIGURED THE BILLBOARD WOULD SAVE MORE TIME AND MONEY BY CUTTING TO THE CHASE IT ALL PROVED TOO MUCH FOR HIS THREE FELLOW WOULDBE ROMEOS OVERWHELMED BY THE DELUGE OF LETTERS EACH CONTACTED A FEW WOMEN BUT THEN ALL THREE CEDED THEIR SHARE OF THE LETTERS TO OTHER INTERESTED BACHELORS THAT'S FINE WITH MR MACHMER HE SAYS HIS THREE FRIENDS NEVER PAID THEIR SHARE OF THE BILLBOARD'S COSTS ANYWAY FOR MS LOMBARDO A 32YEAROLD ADMINISTRATIVE ASSISTANT WHO WORKS AT A PEDIATRIC CENTER ACROSS THE STREET FROM THE BILLBOARD HAVING MR MACHMER CHOOSE TO MEET HER WAS EXCITING IT WAS LIKE I HAD WON A PRIZE SHE SAYS MS LOMBARDO SAYS SHE USUALLY MEETS MEN THROUGH FRIENDS BUT THE BOARD WAS RIGHT THERE AND SO MANY PEOPLE ARE TALKING ABOUT IT SHE WAS THE FIRST OF FIVE WOMEN MR MACHMER HAS MET THROUGH THIS VENTURE THEY'RE ALL NICE GIRLS HE SAYS BUT I'M TAKING MY TIME THERE ARE A LOT OF GIRLS OUT THERE CHANCES ARE HE WILL MEET EVEN MORE AFTER A SCHEDULED APPEARANCE TODAY ON THE NATIONALLY SYNDICATED TELEVISION PROGRAM INSIDE EDITION THE RENTAL OF THE BILLBOARD EXPIRED THIS WEEK BUT FOR NOW THE BILLBOARD COMPANY IS LEAVING THE MESSAGE UP FREEOFCHARGE MR MACHMER ISN'T WORRIED ABOUT HIS MAILBOX OVERFLOWING I'M BRINGING IN MORE GUYS TO SUPPLY THE DEMAND HE SAYS 9308190091 930819 CURTICEBURNS TO SELL 2 UNITS AND MAY PUT ITSELF ON THE BLOCK CURTICEBURNS FOODS INC SAID IT WILL SELL TWO UNPROFITABLE UNITS AS PART OF A RESTRUCTURING PROGRAM AND DISCLOSED THAT IT MAY PUT ITSELF ON THE BLOCK THE RESTRUCTURING WHICH WILL CUT COSTS AND REDUCE THE NUMBER OF PRODUCT LINES RESULTED IN A CHARGE OF 297 MILLION OR 345 A SHARE IN THE FOURTH QUARTER ENDED JUNE 26 INCLUDING THE CHARGE CURTICEBURNS HAD A LOSS OF 28 MILLION OR 325 A SHARE COMPARED WITH NET INCOME OF 22 MILLION OR 25 CENTS A SHARE A YEAR EARLIER SALES FELL 2 TO 212 MILLION FROM 2167 MILLION THE CHARGE ALSO LED TO A LOSS FOR THE YEAR THE ROCHESTER NY PROCESSOR AND MARKETER OF REGIONALLY BRANDED FOOD PRODUCTS SAID IT IS EXPLORING SELLING ITSELF TO PROFAC COOPERATIVE INC WHICH SUPPLIES CURTICEBURNS WITH CROPS AND HELPED FOUND THE COMPANY IT ALSO MIGHT SELL ITSELF TO A THIRD PARTY THE COMPANY SAID AN ALTERNATIVE TO THE SALE WOULD BE ITS PURCHASE OF THE PROPERTY AND EQUIPMENT IT USES FROM PROFAC IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE CURTICEBURNS'S CLASS A STOCK CLOSED AT 1375 DOWN 25 CENTS AS PART OF THE RESTRUCTURING THE COMPANY PUT UP FOR SALE ITS MEAT SNACKS BUSINESS AND ITS HILAND POTATO CHIP UNIT WHICH HAD A COMBINED LOSS OF 35 MILLION FOR THE YEAR THE STRATEGY OF MAXIMUM DIVERSIFICATION AND REGIONAL ORIENTATION SERVED US WELL IN PRIOR DECADES BUT THAT STRATEGY WILL NO LONGER GIVE US THE SALES AND EARNINGS GROWTH WE NEED IN THE FOOD BUSINESS OF THE '90S J WILLIAM PETTY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID 9308190090 930819 FINANCING BUSINESS NATIONSBANK CORP NATIONSBANK CORP SAID IT HAS INCREASED BY 50 MILLION ITS 10YEAR SUBORDINATED NOTE OFFERING THE NOTE OFFERING IS NOW 600 MILLION AND IS PART OF THE CHARLOTTE NC BANK HOLDING COMPANY'S PREVIOUSLY ANNOUNCED 4 BILLION SHELF REGISTRATION FOR DEBT SECURITIES AND STOCK 9308190089 930819 LAW LEGAL BEAT ARBITRATION CAN COST DEFENDANTS MORE THAN JURY TRIAL STUDY SAYS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL ARBITRATION MUCH TOUTED AS A CHEAP AND FAIR SOLUTION TO MANY LEGAL DISPUTES MAY CARRY A SURPRISING COST FOR DEFENDANTS IN CIVIL SUITS DAMAGE AWARDS MORE FAVORABLE TO PLAINTIFFS THAN WHAT A JURY WOULD HAVE ORDERED THAT'S THE CONCLUSION OF A RECENT STUDY IN CALIFORNIA THAT REVIEWED THE ARBITRATION EXPERIENCE OF THE CALIFORNIA STATE AUTOMOBILE ASSOCIATION A MAJOR CASUALTY INSURER IN NORTHERN CALIFORNIA AND NEVADA THE RESULTS ECHO THE FINDINGS OF OTHER STUDIES THAT HAVE EXAMINED WHETHER JURIES OR SUCH PROFESSIONAL DECISIONMAKERS AS JUDGES AND ARBITRATORS ARE MORE SYMPATHETIC TO VICTIMS IN PERSONALINJURY CASES A LAWYER OR A JUDGE IS MORE LIKELY TO DECIDE IN FAVOR OF THE CLAIMANT AND TO RENDER LARGER AWARDS SAYS MICHAEL J BRADY A LAWYER AT THE REDWOOD CITY CALIF FIRM OF ROPERS MAJESKI KOHN BENTLEY WAGNER & KANE WHO WORKED ON THE STUDY THE RESULTS WERE PUBLISHED IN THE CURRENT ISSUE OF FOR THE DEFENSE A PUBLICATION FOR INSURANCE AND CORPORATE DEFENSE LAWYERS THE STUDY CONTRADICTS A COMMON ASSUMPTION BY CRITICS OF THE CIVIL JUSTICE SYSTEM THAT JURIES HAND OUT UNWARRANTED DAMAGE AWARDS IN CASES INVOLVING PAIN AND SUFFERING BECAUSE THEY ARE TOO EASILY SWAYED BY EMOTION MR BRADY AND PETER R CUBANSKE AN ASSISTANT MANAGER AT THE CALIFORNIA STATE AUTOMOBILE ASSOCIATION EXAMINED 148 CIVIL PERSONALINJURY SUITS AGAINST THE INSURER THAT WENT TO TRIAL IN 1991 CALIFORNIA LIKE MANY STATES REQUIRES LITIGANTS IN CIVIL SUITS WITH RELATIVELY SMALL DAMAGES UNDER 50000 IN CALIFORNIA TO TRY THE CASE BEFORE AN INDEPENDENT ARBITRATOR BEFORE PROCEEDING TO TRIAL BEFORE A JURY THE ARBITRATOR'S FINDING CAN BE REJECTED BY EITHER SIDE BUT IS INTENDED AT LEAST TO SERVE AS A GAUGE OF HOW A JURY MIGHT REACT AND TO ENCOURAGE SETTLEMENTS OR SO THE THEORY GOES MR BRADY FOUND THAT OF 45 CASES IN WHICH THE ARBITRATOR'S DECISION WAS REJECTED AND THE PARTIES WENT TO TRIAL THE JURY'S VERDICT TURNED OUT TO BE BETTER FOR THE DEFENSE THAN THE ARBITRATOR'S AWARD HAD BEEN 73 OF THE TIME MR BRADY ALSO SAID THAT JURIES SEEMED TO COME TO MORE ACCURATE CONCLUSIONS IN THE CASES FROM A DEFENSE POINT OF VIEW ONE REASON HE SPECULATED IS THAT PROFESSIONAL ARBITRATORS TOO OFTEN SEEK COMPROMISE AND AWARD AT LEAST PARTIAL DAMAGES IN CLOSE CASES I REALLY DO THINK A LOT OF THEM ARE PROBABLY SITTING THERE THINKING WHAT KIND OF DECISION CAN I MAKE THAT EVEN THOUGH IT WILL NOT MAKE BOTH SIDES HAPPY BOTH SIDES WILL FIND ACCEPTABLE' SAID MR BRADY JURIES HE ADDED BRING A FRESHER AND MORE DETACHED PERSPECTIVE THAT IS MORE LIKELY TO YIELD AN ALLORNOTHING DECISION ANOTHER PROBLEM SAID MR BRADY IS THE NATURE OF THIS KIND OF ARBITRATION BOTH PLAINTIFF LAWYERS AND ARBITRATORS TEND TO TREAT THE PROCESS CAVALIERLY BECAUSE IT IS NOT FINAL TRIAL BY JURY REMAINS AN OPTION EXPERTS IN ARBITRATION SAID THE FINDINGS MAY BE UNIQUE TO CALIFORNIA LAWYERS WHO SERVE AS ARBITRATORS ARE PICKED FROM RANKS OF PRACTICING ATTORNEYS AND CALIFORNIA HAS LONG BEEN KNOWN AS A STATE WHERE DAMAGE AWARDS ARE HIGH MY ASSUMPTION WOULD BE THAT A MEMBER OF THE BAR WOULD BE CONDITIONED TO LARGER SUMS THAN A LAY JURY SAID JAMES HENRY PRESIDENT OF CENTER FOR PUBLIC RESOURCES INC A NONPROFIT ORGANIZATION THAT FOCUSES ON LITIGATION ALTERNATIVES NONETHELESS THE FINDING THAT JURIES TEND TO BE LESS GENEROUS TO INJURED PLAINTIFFS THAN IS COMMONLY SUPPOSED WAS REFLECTED IN A STUDY PUBLISHED A YEAR AGO BY TWO CORNELL UNIVERSITY LAW PROFESSORS THEODORE EISENBERG AND KEVIN CLERMONT THAT STUDY LOOKED AT ALL 130685 CASES THAT WENT TO TRIAL BEFORE EITHER FEDERAL JUDGES OR JURIES FROM 1979 TO 1989 AND CONCLUDED THAT JUDGES NOT JURIES ARE MORE LIKELY TO SIDE WITH PLAINTIFFS IN SEVERAL MAJOR CATEGORIES OF LITIGATION SPECIFICALLY THE AUTHORS CITED SUITS OVER MEDICAL MALPRACTICE DEFECTIVE PRODUCTS AND AUTOMOBILE ACCIDENTS IN TWO OF THE CATEGORIES MEDICAL MALPRACTICE AND AUTOMOBILE INJURY JUDGES WERE MORE GENEROUS THAN JURIES IN DAMAGE AWARDS TO PLAINTIFFS THE STUDY FOUND THE BIOLOGICAL PARENTS OF A 14YEAROLD FLORIDA GIRL WHO WAS SWITCHED AT BIRTH LOST THEIR BID TO BE DECLARED HER LEGAL PARENTS JUDGE STEPHEN DAKAN IN STATE COURT IN SARASOTA DECLARED THAT THE MAN WHO RAISED THE GIRL KIMBERLY MAYS IS HER LEGAL FATHER BUT JUDGE DAKAN DIDN'T GO AS FAR AS GRANTING MISS MAYS'S REQUEST FOR A DIVORCE FROM HER BIOLOGICAL PARENTS ERNEST AND REGINA TWIGG CHILDREN'S RIGHTS ADVOCATES PRAISED THE DECISION AS PART OF A GROWING TREND OF JUDGES ACKNOWLEDGING CHILDREN'S RIGHTS THE DIFFERENCE IS BETWEEN CHILDREN BEING TREATED AS PEOPLE VS PROPERTY SAID BRENDA RUSSO AN ATTORNEY SPECIALIZING IN CHILDREN'S RIGHTS WHO WASN'T INVOLVED IN THE MAYS CASE MISS MAYS TOOK ACTION AGAINST HER BIOLOGICAL PARENTS AFTER THEY CLAIMED THAT THE MAN WHO RAISED HER ROBERT MAYS WAS INVOLVED IN THE HOSPITAL BABY SWITCH THE BABY TAKEN HOME BY THE TWIGGS DIED OF A HEART DEFECT IN 1988 AND GENETIC TESTS LATER DETERMINED THAT MISS MAYS RATHER THAN THE BABY WHO DIED WAS THEIR DAUGHTER ALTHOUGH COURTS HAVE LONG TERMINATED PARENTAL RIGHTS IN CASES INVOLVING ABUSE WHAT'S UNUSUAL IN THIS CASE IS THAT THE NATURAL PARENTS DIDN'T DO ANYTHING WRONG SAID MS RUSSO OF THE FAIRFIELD CALIF LAW FIRM STAHNKE & RUSSO THEY IN FACT WERE VICTIMS OF A HORRIBLE ERROR AN ATTORNEY FOR THE TWIGGS WHO HAVE SAID THEY WILL APPEAL ALL THE WAY TO THE US SUPREME COURT IF NECESSARY DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE ASSOCIATED PRESS REPORTED THE MASTERMIND OF AN INSIDERTRADING SCHEME THAT RECEIVED INFORMATION ON PENDING DEALS FROM A PARALEGAL AT SKADDEN ARPS SLATE MEAGHER & FLOM WAS SENTENCED TO THREE YEARS' PROBATION IN FEDERAL COURT IN NEW YORK DARRIN GLEEMAN ALSO WAS ORDERED TO PERFORM 300 HOURS OF COMMUNITY SERVICE MR GLEEMAN A 1988 GRADUATE OF THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA PLEADED GUILTY TO THE INSIDERTRADINGRELATED CHARGES LAST YEAR MR GLEEMAN'S BOYHOOD FRIEND AND CODEFENDANT CHRISTOPHER J GARVEY ALSO PLEADED GUILTY AND WAS GIVEN THE SAME SENTENCE MR GARVEY WAS A PARALEGAL IN THE MERGERSANDACQUISITIONS DEPARTMENT AT NEW YORK LAW FIRM SKADDEN ARPS THE SCHEME GENERATED TOTAL ILLEGAL TRADING PROFITS OF 300000 WHICH THE DEFENDANTS AGREED TO TURN OVER AS PART OF A SETTLEMENT OF A SECURITIES AND EXCHANGE COMMISSION CIVIL SUIT FILED IN THE CASE THE PAYMENT OF THE SETTLEMENT HOWEVER WAS WAIVED BECAUSE OF THE DEFENDANTS' FINANCIAL SITUATION ALSO A DEFENDANT IN THE CASE WAS MR GLEEMAN'S FATHER SEYMOUR GLEEMAN WHO PLEADED GUILTY AND IS AWAITING SENTENCING 9308190088 930819 AUTOZONE SECONDARY OFFERING MEMPHIS TENN AUTOZONE INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SECONDARY OFFERING OF 55 MILLION COMMON SHARES THE RETAILER OF AUTO PARTS SAID IT WILL ALSO PROVIDE AN OVERALLOTMENT OPTION OF AS MANY AS 825000 SHARES THE SHARES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AND GOLDMAN SACHS & CO THE COMPANY SAID JR HYDE III CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL SELL 500000 SHARES OR ABOUT 6 OF HIS HOLDINGS THREE LIMITED PARTNERSHIPS WHICH EACH HAVE KKR ASSOCIATES AS THE GENERAL PARTNER WILL SELL FIVE MILLION SHARES REPRESENTING 13 OF THEIR HOLDINGS KKR ASSOCIATES AN AFFILIATE OF THE PRIVATE INVESTMENT FIRM OF KOHLBERG KRAVIS ROBERTS & CO CURRENTLY OWNS ABOUT 52 OF AUTOZONE'S COMMON STOCK THE SALE OF THE FIVE MILLION SHARES WILL REDUCE THEIR OWNERSHIP TO ABOUT 45 9308190087 930819 NEW MASTERCARD BUSINESS CARD NEW YORK MASTERCARD INTERNATIONAL INC UNVEILED A CREDIT CARD FOR COMPANIES TO BUY OFFICE SUPPLIES AND OTHER ITEMS COSTING 25000 OR LESS ACCORDING TO THE COMPANY THE MASTERCARD PURCHASING CARD IS INTENDED TO SAVE USERS MONEY BY STREAMLINING THE TRADITIONAL SYSTEM OF INVOICES PURCHASE ORDERS AND CHECKS USUALLY REQUIRED FOR PURCHASES OF THAT SIZE MASTERCARD ESTIMATES COMPANIES SPEND 400 BILLION A YEAR ON SUCH PURCHASES OTHER CREDITCARD COMPANIES ARE WORKING ON THEIR OWN VERSIONS OF SUCH CARDS 9308190086 930819 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK THIS ENTERTAINMENT AND PUBLISHING COMPANY NAMED GARRETT S HART 42 YEARS OLD PRESIDENT OF THE NETWORK TELEVISION DIVISION OF PARAMOUNT TELEVISION GROUP PREVIOUSLY SENIOR VICE PRESIDENT OF CURRENT PROGRAMS FOR UNIVERSAL TELEVISION A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO MR HART SUCCEEDS JOHN PIKE 46 YEARS OLD WHO LEFT THE COMPANY 9308190085 930819 POLITICS & POLICY CALIFORNIA TAX DISPUTE FORCES CLINTON TO CHOOSE BETWEEN VOTERICH STATE AND TRADING PARTNERS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON DID WHAT ANY SENSIBLE PRESIDENTIAL CANDIDATE WOULD DO LAST YEAR WHEN CALIFORNIA'S TAX COLLECTOR PRESSED HIM TO STATE HIS POSITION ON THE STATE'S LONGRUNNING DISPUTE WITH BARCLAYS BANK PLC OF BRITAIN I ASSURE YOU A CLINTON ADMINISTRATION WILL BE PROCALIFORNIA IN THIS LITIGATION CAME THE ANSWER FROM THE CAMPAIGN TRAIL BUT NOW THAT HE'S PRESIDENT MR CLINTON AND HIS ADMINISTRATION ARE FINDING THAT BEING PROCALIFORNIA ISN'T QUITE SO SIMPLE THE REASON SOME OF AMERICA'S MOST IMPORTANT ECONOMIC ALLIES ARE THREATENING AN ALLOUT TAX WAR WITH THE US UNLESS CALIFORNIA RESTRUCTURES ITS CORPORATE TAX SYSTEM FOR THE CLINTON ADMINISTRATION THE ROW ILLUSTRATES HOW PROMISES DISPENSED IN A CAREFREE FASHION DURING THE CAMPAIGN CAN BECOME FAR MORE COMPLICATED AFTER THE ELECTION IS OVER IN THIS CASE IT IS FORCING THE WHITE HOUSE INTO A DELICATE BALANCING ACT BETWEEN FOREIGN AND ECONOMICPOLICY CONCERNS AND AN ELECTORALLY CRUCIAL STATE I'D LIKE TO THINK CLINTON HAS SUPPORTED US BECAUSE WE'RE RIGHT NOT BECAUSE WE HAVE 54 MORE ELECTORAL COLLEGE VOTES THAN THE BRITISH SAYS BRAD SHERMAN THE DEMOCRATIC CHAIRMAN OF CALIFORNIA'S PUBLICLY ELECTED BOARD OF EQUALIZATION WHO RECEIVED MR CLINTON'S PLEDGE LAST YEAR BUT THE FACT IS WE DO HAVE 54 MORE ELECTORAL COLLEGE VOTES THE SPECIFIC CONFLICT CENTERS ON THE STATE'S WORLDWIDE UNITARY METHOD WHICH TAXES MULTINATIONAL CORPORATIONS BASED ON THEIR GLOBAL EARNINGS OPPONENTS CONTEND AMONG OTHER THINGS THAT THIS ARRANGEMENT UNCONSTITUTIONALLY INTERFERES WITH FOREIGN COMMERCE BUT FOR CALIFORNIA THE ECONOMIC STAKES ARE ENORMOUS LOSING THE CASE WOULD COST IT NEARLY 900 MILLION IN TAX REFUNDS AND FORGONE ASSESSMENTS FROM FOREIGNBASED MULTINATIONALS WITH ANOTHER 31 BILLION IN STATE TAX REVENUES FROM USBASED MULTINATIONALS ALSO THREATENED IN THE FALL THE US SUPREME COURT IS EXPECTED TO DECIDE WHETHER OR NOT TO HEAR BARCLAYS'S APPEAL OF ITS LOSS IN THE STATE COURTS BUT FIRST THE SUPREME COURT WANTS TO HEAR FROM THE ADMINISTRATION IN MAY IT ASKED THE JUSTICE DEPARTMENT TO SPELL OUT THE ADMINISTRATION'S VIEW OF THE MATTER AND A REPLY IS LIKELY BY MIDSEPTEMBER NORMAN LAMONT THEN BRITAIN'S CHANCELLOR OF THE EXCHEQUER ANNOUNCED LAST SPRING THAT THE BRITISH ARE PREPARED TO RETALIATE AGAINST US COMPANIES IF THERE IS NOT A SATISFACTORY RESOLUTION OF THE MATTER BY THE END OF THE YEAR INLAND REVENUE BRITAIN'S TAX COLLECTOR HAS ALREADY SENT A LETTER TO HUNDREDS OF USBASED COMPANIES WARNING OF POSSIBLE REPRISALS THE GERMAN PARLIAMENT IS ALSO MAKING THREATS AND A HOST OF OTHER NATIONS FROM CANADA AND JAPAN TO FINLAND AND AUSTALIA HAVE ALSO EXPRESSED DISDAIN FOR THE WORLDWIDE UNITARY SYSTEM SO FAR THE ADMINISTRATION HASN'T DECIDED WHAT COURSE TO TAKE BUT ONE SENIOR AIDE INVOLVED IN THE DELIBERATIONS SUGGESTS THAT AS HIGH AS THE STAKES ARE ABROAD THE ADMINISTRATION CAN'T AFFORD TO STICK IT TO CALIFORNIA A STATE THAT IS CRUCIAL TO THE NATION'S ECONOMY AND TO MR CLINTON'S OWN POLITICAL PROSPECTS IN 1996 IN A SENSE THE WHITE HOUSE ALREADY HAS SIGNALED ITS FEELINGS ABOUT THE MATTER THROUGH ITS CALCULATED SILENCE PRESIDENTS REAGAN AND BUSH BOTH ACTIVELY SUPPORTED THE BARCLAYS POSITION SO THE CLINTON ADMINISTRATION'S FAILURE TO FILE A BRIEF ON BEHALF OF THE BANK IS ITSELF A CHANGE BUT WITH THE PRESSURE MOUNTING FROM OVERSEAS WHAT THE ADMINISTRATION WOULD REALLY LOVE AT THIS POINT IS A WAY OUT AND IT'S HOPING THAT THE CALIFORNIA LEGISLATURE CAN PROVIDE ONE YESTERDAY THE REVENUE AND TAXATION COMMITTEE OF THE STATE SENATE BEGAN HOLDING HEARINGS ON A BILL THAT AIMS TO GIVE MULTINATIONAL COMPANIES AN ATTRACTIVE ALTERNATIVE TO THE WORLDWIDE UNITARY METHOD THE CLINTON ADMINISTRATION HAS BEEN WORKING FOR MONTHS BEHIND THE SCENES TO PUSH THIS LEGISLATION ON THE ASSUMPTION THAT IF IT IS SWEET ENOUGH IT COULD LEAD THE FOREIGN GOVERNMENTS TO BACK DOWN ROBERT RUBIN THE HEAD OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL AND TREASURY SECRETARY LLOYD BENTSEN VISITED CALIFORNIA OFFICIALS EARLIER THIS SUMMER TO ENCOURAGE SUCH A SOLUTION THE CLINTON ADMINISTRATION IS TRYING TO GIVE US SOME ROOM TO SOLVE THIS DILEMMA FOR THEM EXPLAINS STATE SENATE STAFFER FRED SILVA ADDING THAT HE REMAINS IN CONSTANT CONTACT WITH TREASURY DEPARTMENT OFFICIALS IN WASHINGTON EVEN MR SHERMAN OF THE BOARD OF EQUALIZATION RECOGNIZES PROBLEMS WITH KEEPING THE CURRENT CORPORATE TAX SYSTEM AS FOREIGN COMPANIES BECOME MORE RELUCTANT TO INVEST IN THE STATE IT'S IN MY INTEREST TO BRING A HIGHER LEVEL OF HAPPINESS TO FOREIGN INVESTORS HE SAYS THIS ISN'T THE FIRST ATTEMPT AT A FIX HOWEVER IN 1988 AFTER CONSIDERABLE PRESSURE FROM THE REAGAN ADMINISTRATION THE STATE BEGAN OFFERING MULTINATIONAL COMPANIES ANOTHER OPTION FOR CALCULATING THEIR TAXES BESIDES THE WORLDWIDE METHOD BUT MANY IN THE BUSINESS COMMUNITY HAVE NEVER BEEN VERY SATISFIED WITH THIS WATER'S EDGE SUBSTITUTE WHICH BASES A COMPANY'S CALIFORNIA TAXES ON THE AMOUNT OF INCOME IT HAS EARNED JUST WITHIN THE US THE COMPANIES COMPLAIN THAT IF THEY ELECT THIS FORMULA THEY'RE FORCED TO PROVIDE THE STATE WITH A CUMBERSOME SPREADSHEET DETAILING THEIR FINANCES THEY ALSO HAVE TO COUGH UP A SPECIAL FEE TIED TO THE SCOPE OF THEIR CALIFORNIA OPERATIONS AND THE STATE CAN STILL UNILATERALLY FORCE THEM BACK INTO THE WORLDWIDE UNITARY SYSTEM A PROVISION KNOWN IN TAX CIRCLES AS THE NUCLEAR BOMB THE BILL NOW BEING CONSIDERED IN SACRAMENTO SEEKS TO MAKE THE WATER'SEDGE METHOD MORE PALATABLE THE GOAL IS TO PASS SOMETHING BEFORE THE LEGISLATURE ADJOURNS NEXT MONTH THAT WOULD PUT THE WHITE HOUSE IN A STRONG POSITION TO ASK THE SUPREME COURT TO NOT HEAR THE BARCLAYS CASE BECAUSE IT'S NO LONGER RELEVANT BUT IT'S FAR FROM CERTAIN THAT EVERYTHING WILL FALL INTO PLACE INDEED THE WORLDWIDE UNITARY METHOD HAS ITS STAUNCH DEFENDERS WHO MAINTAIN THAT IT'S THE MOST EFFECTIVE MEANS TO ENSURE THAT MULTINATIONAL COMPANIES CAN'T ESCAPE PAYING THEIR FAIR SHARE OF US TAXES BY SENDING PROFITS OFFSHORE SOME ALSO SEE IT AS A QUESTION OF STATES' RIGHTS THE NATIONAL GOVERNORS ASSOCIATION FOR INSTANCE HAS ASKED PRESIDENT CLINTON TO BACK CALIFORNIA IN THE BARCLAYS CASE ASSERTING THAT YOUR ACTION CAN HELP STATES RETAIN THEIR STATUS AS VIABLE PARTNERS IN THE FEDERAL SYSTEM IT ISN'T CLEAR WHAT WILL HAPPEN IF THE DISPUTE ISN'T RESOLVED THE BRITISH FOR ONE HAVE SAID THAT THEY MIGHT WITHDRAW CERTAIN TAX CREDITS FOR US FIRMS STARTING WITH THOSE BASED IN CALIFORNIA EVEN IF THE BILL TO CHANGE THE STATE'S TAX SYSTEM PASSES FOREIGN GOVERNMENTS MAY STILL NOT BE SATISFIED SOME HAVE SUGGESTED THAT WHILE THE FUTURE INVESTMENT CLIMATE IN CALIFORNIA MAY BE IMPROVED THE LEGISLATION DOESN'T ADEQUATELY ADDRESS THEIR GRIEVANCES FROM YEARS GONE BY IT IS THIS DEGREE OF PASSION THAT THE CLINTON CAMP MAY NOT HAVE BEEN PREPARED FOR ASKED IF HE CAN THINK OF ANOTHER MATTER IN WHICH THE FEELINGS RUN SO DEEP JAMES CARTER GENERAL COUNSEL FOR A GROUP REPRESENTING FOREIGNOWNED COMPANIES OPERATING IN THE US RESPONDS YOU MEAN BESIDES ABORTION 9308190083 930819 WHO'S NEWS MCAFEE ASSOCIATES INC MCAFEE ASSOCIATES INC SANTA CLARA CALIF WILLIAM LARSON 37 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE CONCERN MR LARSON WHO WAS VICE PRESIDENT OF SALES AND MARKETING AT SUN MICROSYSTEMS INC'S SUNSOFT UNIT SUCCEEDS COMPANY FOUNDER JOHN MCAFEE 47 WHO WILL CONTINUE AS CHAIRMAN 9308190082 930819 AT&T RIVALS FACE OFF IN WIRELESS WARS BABY BELLS PLAN TO PRESS US TO RELAX CURBS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ALARMS SOUNDED BY THE BABY BELLS REGULATORS AND LAWMAKERS AREN'T EXPECTED TO STOP AMERICAN TELEPHONE & TELEGRAPH CO FROM SCOOPING UP MCCAW CELLULAR COMMUNICATIONS INC NOR FOR ALL THEIR WORRIES ABOUT AT&T REASSEMBLING THE BELL SYSTEM ARE THE BABY BELLS PLOTTING A FIERCE CAMPAIGN TO BLOCK THE AT&T JUGGERNAUT THEIR STRATEGY IS TO USE THE AT&TMCCAW ALLIANCE TO WIN GREATER FREEDOM TO ENTER NEW BUSINESSES AT THE FEDERAL COMMUNICATIONS COMMISSION THE BELLS WILL PUSH FOR A LEVEL PLAYING FIELD WITHIN THE CELLULAR ARENA AT&T THEY BELIEVE SHOULDN'T HAVE GREATER ABILITY THAN OTHER CELLULAR COMPANIES TO PACKAGE CELLULAR PHONE AND LONGDISTANCE SERVICES AND EQUIPMENT PURCHASES AND ON CAPITOL HILL BELL EXECUTIVES BELIEVE THE MERGER PACT IS ANOTHER WEDGE TO SPLIT THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM NEARLY 10 YEARS AGO WHAT I WANT IS NOT TO KEEP AT&T OR ANYBODY ELSE OUT SAYS WILLIAM FERGUSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NYNEX CORP BASED IN WHITE PLAINS NY WHAT I WANT IS TO OPEN UP THE MARKETPLACE TO FREE AND OPEN COMPETITION LET US OFFER THE SAME SERVICES AT&T CAN OFFER THE BELLS WANT CONGRESS TO ENACT LEGISLATION THAT WOULD LET THEM PROVIDE LONGDISTANCE SERVICE AND MANUFACTURE TELEPHONE EQUIPMENT THE TWO BUSINESSES THE CONSENT DECREE BARS THEM FROM ENTERING IN ADDITION THEY WANT CONGRESS TO REVERSE A PROVISION IN THE 1984 CABLE ACT THAT PROHIBITS THEM FROM PROVIDING CABLETELEVISION SERVICE WITHIN THEIR TELEPHONE TERRITORIES IT IS TIME TO LET ALL COMPANIES COMPETE EQUALLY SAYS EDWARD E WHITACRE JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL CORP IN SAN ANTONIO TEXAS IF THIS TRANSACTION IS GOING TO BE APPROVED THE BELL COMPANIES SHOULD BE FREED TO OFFER LONGDISTANCE SERVICES AND MANUFACTURING AT THE SAME TIME WITH REASON THE SEVEN BELL COMPANIES FEAR AT&T WILL USE THE MCCAW NETWORK TO OFFER WIRELESS PHONE SERVICE TO CONSUMERS AND BUSINESSES GNAWING AWAY AT THE LOCAL PHONE BUSINESS MONOPOLY THE REGIONAL BELL COMPANIES ARE WORRIED ABOUT ACCESS BUSINESS BECAUSE THEY ARE SLOWLY BUT SURELY SEEING THEIR MARKET ERODE SAYS FCC COMMISSIONER ANDREW BARRETT ANALYSTS FIGURE THAT ACCESS CHARGES THE FEES PAID BY LONGDISTANCE COMPANIES TO LOCAL PHONE COMPANIES TO COMPLETE LONGDISTANCE CALLS ACCOUNT FOR ROUGHLY HALF OF LOCAL TELEPHONE COMPANY PROFITS IT WON'T HAPPEN IN THE NEXT FEW YEARS BUT AS WIRELESS TECHNOLOGIES EVOLVE AND PRICES FOR WIRELESS PHONE SERVICE PLUNGE MANY EXPERTS FORESEE A DAY WHEN ORDINARY PHONE CALLS WILL RIDE THE RADIO WAVES JUST AS EFFICIENTLY AS THEY TRAVEL THROUGH WIRES TODAY MCCAW'S NETWORK CAN REACH ABOUT 35 OF THE US POPULATION THE THREAT WILL GROW AS AT&T AND A HOST OF OTHER COMPANIES LAUNCH PERSONAL COMMUNICATIONS SERVICES WIRELESS TELEPHONE AND DATA SERVICES OVER SMALL POCKETSIZED PHONES AND COMPUTERS THE BELLS FACE MORE IMMEDIATE COMPETITION PERHAPS FROM EACH OTHER AND FROM CABLE COMPANIES UNDER AN ALLIANCE ANNOUNCED EARLIER THIS YEAR FOR EXAMPLE U S WEST INC IS REBUILDING CABLE NETWORKS FOR TIME WARNER INC TO CARRY TWOWAY VIDEO AS WELL AS TELEPHONE CALLS ON TOP OF THAT A NUMBER OF ALTERNATIVEACCESS COMPANIES SUCH AS METROPOLITAN FIBER SYSTEMS AND TELEPORT COMMUNICATIONS GROUP OWNED BY FOUR CABLE TV COMPANIES HAVE SPRUNG UP TO CONNECT CORPORATIONS DIRECTLY TO LONGDISTANCE CARRIERS CONSUMER GROUPS WELCOME THE NEW COMPETITION BUT ARGUE THAT IT ISN'T TIME TO FREE THE BABY BELLS THE MERGER WILL HAVE NO IMMEDIATE EFFECT ON THE LOCAL TELEPHONE MARKET STRUCTURE SAYS GENE KIMMELMAN LEGISLATIVE DIRECTOR FOR THE CONSUMER FEDERATION OF AMERICA THE MORE PLAYERS USING DIFFERENT TECHNOLOGIES THE GREATER THE LIKELIHOOD THAT CONSUMERS WILL BENEFIT FROM NEW SERVICES AND LOWER PRICES IF AT&T'S OWN REGULATORY COURSE SETS THE PRECEDENT REGULATORS AND LAWMAKERS WON'T LIKELY GRANT THE BELLS EXTENSIVE NEW FREEDOM UNTIL THEIR MARKET SHARES DROP 25 POINTS OR MORE FROM TODAY'S LOFTY 99 LEVEL AT&T'S MARKET SHARE IS ABOUT 60 AND THE COMPANY STILL FACES SUBSTANTIAL REGULATION NEVERTHELESS THE AT&TMCCAW ANNOUNCEMENT IS POWERFUL EVIDENCE THAT THE FUTURE IS WIRELESS SAYS REP EDWARD MARKEY THE MASSACHUSETTS DEMOCRAT WHO HEADS THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEES ALTHOUGH HE AND OTHER LAWMAKERS PLAN TO EXAMINE THE TRANSACTION NONE HAVE EXPRESSED STRONG OPPOSITION ONE WILD CARD IS THE JUSTICE DEPARTMENT ANNE K BINGAMAN THE NEW HEAD OF THE AGENCY'S ANTITRUST DIVISION TOLD THE AMERICAN BAR ASSOCIATION'S ANTITRUST SECTION THAT SHE IS AN UNABASHED AND ENTHUSIASTIC SUPPORTER OF VIGOROUS ANTITRUST ENFORCEMENT A JUSTICE DEPARTMENT SPOKESWOMAN DECLINED TO COMMENT ON THE AT&TMCCAW PLANS OTHER THAN TO SAY THE DEPARTMENT WILL CAREFULLY REVIEW THEM SEE RELATED STORY TELECOMMUNICATIONS PLAYERS BOAST DEEP POCKETS TECHNOLOGY WSJ AUG 19 1993 9308190081 930819 BANISTER INC UNIT GETS CONTRACT TORONTO BANISTER INC SAID ITS JACKSONLEWIS CO BUILDING SUBSIDIARY RECEIVED A CONTRACT VALUED AT 36 MILLION CANADIAN DOLLARS US274 MILLION TO FINISH THE INTERIOR OF SEVERAL STORIES OF A NEW TOWER AT VANCOUVER GENERAL HOSPITAL IN BRITISH COLUMBIA BANISTER A TORONTOBASED CONSTRUCTION CONCERN SAID WORK AT THE HOSPITAL IS EXPECTED TO BE COMPLETED IN MID1995 9308190080 930819 BUSINESS BRIEF SNYDER OIL CORP CHARGE OF 462000 SLATED TO RETIRE SOME DEBT EARLY SNYDER OIL CORP SAID IT WILL TAKE A THIRDQUARTER CHARGE OF 462000 FOR EARLY RETIREMENT OF DEBT THE FORT WORTH TEXAS OIL AND GAS CONCERN SAID IT RETIRED 10 MILLION PRINCIPAL AMOUNT OF ITS 13 1/2 SUBORDINATED NOTES SUBSEQUENTLY REACQUIRED AT A PREMIUM FOR THE YEARAGO THIRD QUARTER SNYDER OIL REPORTED NET INCOME OF 45 MILLION OR 15 CENTS A SHARE THE COMPANY ADDED THAT ITS PERMTEX ENERGY EXPLORATION AND DEVELOPMENT VENTURE IN RUSSIA RECEIVED APPROVALS FROM THE RUSSIAN GOVERNMENT THAT AUTHORIZE PERMTEX TO BEGIN DOING BUSINESS THE VENTURE OWNS RIGHTS TO EXPLORE AND DEVELOP 300000 ACRES IN THE VOLGAURALS BASIN ABOUT 70 MILES EAST OF MOSCOW 9308190079 930819 OUR PENSIONS PENSIONS RIPE FOR DEMOCRATS' PLUCKING BY DAVID ANDREW PRICE TAX INCREASES AREN'T THE ONLY DEVICE THAT THE CLINTON ADMINISTRATION HAS IN MIND FOR RAISING MONEY ONE ENORMOUS POOL OF TAXPAYERS' MONEY IS STILL JUST SITTING THERE MORE THAN 2 1/2 TRILLION WORTH AND TOTALLY UNTAPPED BY THE FEDS UP TO NOW IT'S A BIG SPENDER'S FANTASY COME TRUE SO IT SHOULD COME AS NO SURPRISE THAT THE ADMINISTRATION HAS ALREADY DECLARED ITS INTENTION TO PUT THIS MONEY TO USE WHERE ARE THESE NEWLY FOUND RICHES IN THE PENSION PLANS OF AMERICA'S WORKERS THE PENSION FUNDS ARE THE LATEST TRENDIEST TARGET OF DEMOCRATIC POLICY MAKERS THE CLINTON CAMPAIGN BOOK PUTTING PEOPLE FIRST PROMISED TO REVAMP AMERICA'S COMMUNICATIONS TRANSPORTATION AND ENVIRONMENTAL SYSTEMS BY USING FEDERAL MONEY LEVERAGED WITH PENSION FUND CONTRIBUTIONS LIKEWISE HOUSING SECRETARY HENRY CISNEROS TOLD THE SENATE BANKING COMMITTEE DURING HIS CONFIRMATION HEARINGS THAT HE WOULD TAP THE PENSION FUNDS FOR INVESTMENTS IN LOWINCOME HOUSING AND HE HAS ALREADY STARTED TO FOLLOW THROUGH ANNOUNCING A PILOT PROJECT ON JUNE 21 THAT WILL USE 660 MILLION FROM THE AFLCIO PENSION FUND OLENA BERG ASSISTANT LABOR SECRETARY FOR PENSION AND WELFARE BENEFITS IS ALSO SAID TO FAVOR SUCH PLANS AREN'T PENSION FUNDS SUPPOSED TO BE FOR THE BENEFIT OF WORKERS AND RETIREES YES HAS THAT PRINCIPLE KEPT GOVERNMENT AWAY NO A FEW STATES AND LOCALITIES SUCH AS MASSACHUSETTS AND NEW YORK CITY HAVE ALREADY BEGUN DIRECTING A PORTION OF STATE EMPLOYEES' PENSION FUNDS INTO SOCIALLY DESIRABLE INVESTMENTS SUCH AS LOWINCOME HOUSING ONE OF THOSE FUNDS THE KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM LOST MORE THAN 100 MILLION ON SOCIALLY TARGETED INVESTMENTS IN THE 1980S AT THE FEDERAL LEVEL THE PENSION RAID WOULD MOST LIKELY WORK IN TWO WAYS CURRENTLY FEDERAL LAW REQUIRES THAT PRIVATE PENSION PLANS BE INVESTED SOLELY FOR THE BENEFIT OF THE WORKERS AND RETIREES AND THAT THE FUNDS BE INVESTED PRUDENTLY THESE REQUIREMENTS WOULD BE MODIFIED SO THAT PENSIONFUND MANAGERS COULD MAKE TYPES OF INVESTMENTS CONSIDERED SOCIALLY DESIRABLE EG INFRASTRUCTURE AND HOUSING WITHOUT HAVING TO WORRY ABOUT THEIR OWN LIABILITY SECOND AS SUGGESTED IN CHANGING AMERICA THE RECENT LIBERAL VERSION OF THE HERITAGE FOUNDATION'S MANDATE FOR LEADERSHIP OF THE EARLY 1980S A GOVERNMENTAL OR QUASIGOVERNMENTAL ORGANIZATION WOULD SELL BONDS TO BE REPAID BY THE REVENUES FROM A GROUP OF PROJECTS AND THE BONDS WOULD BE GUARANTEED BY THE FEDERAL GOVERNMENT THIS IS WHAT CANDIDATE CLINTON MEANT BY LEVERAGING RATHER THAN SPEND 20 BILLION OF FEDERAL MONEY A YEAR DIRECTLY ON INFRASTRUCTURE THE FEDS CAN USE THE SAME 20 BILLION AS A RESERVE TO GUARANTEE 200 BILLION IN PENSION INVESTMENTS OR EVEN 400 BILLION IT'S MAGIC ONLY IT ISN'T MAGIC IF THESE HOUSING AND INFRASTRUCTURE PROJECTS WERE GOOD INVESTMENTS THERE WOULD BE INVESTORS FOR THEM ALREADY ALBEIT AT A HIGHER INTEREST RATE THE EFFECT OF THE FEDERAL GUARANTEE IS SIMPLY TO TAKE AWAY MARKET DISCIPLINE TODAY IN EXCHANGE FOR POTENTIALLY MASSIVE TAXPAYER LIABILITY TOMORROW JUST AS IN THE SAVINGS AND LOAN CRISIS WHETHER THE RISKS ARE FOISTED ON THE PENSION FUNDS OR ON TAXPAYERS IN GENERAL THE PROPOSAL IS HARDLY ANY LESS LARCENOUS THAN THE SWEETHEART LOANS THE MOB TOOK FROM THE TEAMSTERS CENTRAL STATES PENSION FUND IN THE 1960S AND 1970S IN FACT IF THE PROPOSALS TO TAP THE COUNTRY'S PENSIONS BECOME REALITY THE RESULTS COULD EASILY BE WORSE THAN THE S&L CRISIS THIS IS HARD TO IMAGINE BUT IT IS A GENUINE POSSIBILITY IN THE S&L CRISIS THE TAXPAYERS HAD ON THEIR SIDE A CADRE OF EXAMINERS WHO WERE COMMITTED TO PREVENTING THE FRAUD AND MISMANAGEMENT THAT WOULD THREATEN THE DEPOSIT INSURANCE FUNDS ON THE OTHER SIDE THERE WERE ONLY THE S&L OWNERS A WELLFINANCED BUT NUMERICALLY VERY SMALL CONSTITUENCY THAT WANTED THE EXAMINERS HELD AT BAY UNDER THOSE COMPARATIVELY FAVORABLE CONDITIONS THANKS IN PART TO THE INTERVENTION OF JIM WRIGHT TONY COELHO AND OTHERS IN CONGRESS THE TAXPAYERS ENDED UP WITH HUNDREDS OF MILLIONS OF DOLLARS IN LIABILITY NOW FLASH FORWARD TO THE YEAR 2003 HUNDREDS OF HOUSING AND INFRASTRUCTURE PROJECTS HAVE DEFAULTED AND THE GUARANTEE FUND HAS LONG SINCE BEEN CLEANED OUT IT WAS INEVITABLE BECAUSE THE PROJECTS WERE ALWAYS RUN BY INDIVIDUALS WITH A MANDATE TO SERVE THEIR CLIENTELE NOT TO PROTECT THE TAXPAYERS AT THIS POINT THE GUARANTEES HAVE ALREADY IMPOSED TAXPAYER LIABILITY ON THE SCALE OF THE S&L BAILOUT YET THE PROJECTS HAVE A MASSIVE CONSTITUENCY WITH THE POLITICAL CLOUT TO INSIST THAT THE TAXPAYERS NOT ONLY PAY OFF THE DEFAULTED PROJECTS BUT ALSO CONTINUE TO GUARANTEE NEW ONES THE WAY TO AVOID THAT SCENARIO IS TO KEEP THE PENSION FUNDS WORKING FOR THOSE WHO HAVE EARNED THE RIGHT TO PARTICIPATE IN THEM AMERICANS MUST NOT LET THEIR PENSION FUNDS BECOME YET ANOTHER TOOL FOR FEDERAL BUDGETARY GIMMICKS MR PRICE IS AN ATTORNEY IN WASHINGTON 9308190078 930819 INTERNATIONAL RULING PARTY IN TAIWAN REELECTS LEE AS CHAIRMAN TAIPEI TAIWAN THE RULING KUOMINTANG PUT ON A DISPLAY OF UNITY BY OVERWHELMINGLY REELECTING PRESIDENT LEE TENGHUI AS PARTY CHAIRMAN ON THE THIRD DAY OF A SOMETIMES CONTENTIOUS WEEKLONG CONGRESS THE PARTY FOR THE FIRST TIME VOTED FOR THE CHAIRMAN POST IN A SECRET BALLOT IN 1988 WHEN PRESIDENT LEE FIRST WAS ELECTED CHAIRMAN DELEGATES VOTED BY STANDING UP THE CONGRESS ALSO APPROVED WITH A NEARLY UNANIMOUS DISPLAY OF HANDS A SLATE OF FOUR CANDIDATES WHO WILL SERVE AS VICE CHAIRMEN OF THE PARTY A NEW POSITION THE CANDIDATES WERE NOMINATED BY PRESIDENT LEE AND VOTED ON AS A GROUP IN AN EFFORT TO HEAL THE RIFTS THAT LED TO AN OUT AND OUT BRAWL ON TUESDAY DURING THE DEBATE OVER CREATING THE POSTS MR LEE NOMINATED SENIOR FIGURES FROM FACTIONS THAT AT TIMES HAVE BEEN CRITICAL OF HIS LEADERSHIP THE FOUR VICE CHAIRMEN ARE VICE PRESIDENT LEE YUANTZU FORMER PREMIER HAU PEITSUN THE HEAD OF THE JUDICIAL BRANCH OF TAIWAN'S GOVERNMENT LIN YANGKANG AND THE CURRENT PRIME MINISTER LIEN CHAN THE KUOMINTANG NEEDS TO BOLSTER AMITY IN ADVANCE OF A TOUGH ELECTION CAMPAIGN FOR LOCAL GOVERNMENT POSTS IN NOVEMBER THE PARTY COULD LOSE SEVERAL COUNTY MAGISTRACIES IF IT IS UNABLE TO IMPROVE ITS IMAGE BRUISED BY ALLEGATIONS OF CORRUPTION AND MONEY POLITICS 9308190077 930819 HOW TO GET AHEAD OF HIGH BEER TAXES VISIT A LOCAL UBREW SHOPS WHERE CANADIANS MAKE THEIR OWN HAVE BECOME POPULAR GATHERING PLACES BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIANS RARELY ARE MODEST ABOUT BEER CERTAINLY NOT DOUGLAS ALLES A COMPUTER CONSULTANT WHO MAKES HIS OWN IT'S THE BEST YOU CAN DRINK BOASTS MR ALLES OFFERING A VISITOR A SIP OUTSIDE THE INDUSTRIAL BUILDING WHERE HE AND OTHER AMATEUR BREWERS TOIL IN AIR STICKY WITH MALT HOPS AND THE HEAT OF BOILING LIQUORS IT'S ANOTHER NIGHT AT THE UBREW WHAT LAUNDROMATS ARE TO CLOTHES CANADA'S UBREWS ARE TO THE THIRSTY AND THE HEAVILY TAXED HERE FOR ABOUT 90 CANADIAN DOLLARS WOULDBE BREWMASTERS LEGALLY CAN WHIP UP A 13GALLON BATCH OF POTENT SUDS IN PLACE OF COMMERCIAL BREWERIES' BIG BUILDINGS ELABORATE PLUMBING AND COMPUTERIZED CHILLERS UBREWS OFFER STOREFRONT OR WAREHOUSE SPACE HUGE METAL POTS PLASTIC TUBS LOTS OF WELLUSED BEER BOTTLES RECIPES AND SOME KNOWHOW LOWTECH PERHAPS BUT LOWCOST TOO UBREWS SIDESTEP FEDERAL BEER TAXES AND MOST PROVINCIAL TAXES IN A LAND WHERE BEER LEVIES ARE HUGE A SIXPACK OF DOMESTIC BREW GOES FOR THE EQUIVALENT OF US535 AS MUCH AS DOUBLE THE US COST DODGING THE TAXMAN IS A HEADY INCENTIVE FOR BEER QUAFFERS THE FIRST UBREW STARTED SIX YEARS AGO IN LONDON ONTARIO WITH THE IDEA THAT BEER LOVERS WOULD BE HAPPY TO RENT EQUIPMENT MAKE A MESS AWAY FROM HOME AND SAVE SOME MONEY TWO YEARS AGO THERE WERE ONLY 40 OUTLETS IN ALL OF ONTARIO NOW THERE ARE 250 BREWITYOURSELF OPERATIONS FROM NORTHERN LUMBER TOWNS WHERE LAGER HAS NEW MEANING TO DOWNTOWN TORONTO WHERE YUPPIES EXPERIMENT WITH DESIGNER BREWS LIKE GROUND HOG ALE AND BLACK KNIGHT BITTER ONTARIO'S AMATEURS LAST YEAR PRODUCED AN ESTIMATED 56 MILLION GALLONS OF BEER ROUGHLY 3 OF THE PROVINCE'S OUTPUT IN OUR BUSINESS THOSE ARE HUGE NUMBERS SAYS JAN WESTCOTT EXECUTIVE DIRECTOR OF BREWERS OF ONTARIO AN INDUSTRY LOBBYING GROUP WHICH HAS PERSUADED THE PROVINCE TO APPLY A PARTIAL TAX ON THE NONCOMMERCIAL BEER A CULTURE HAS GROWN AT THE UBREWS WHERE FRIENDS GATHER USUALLY ON WEEKNIGHTS MOST BUDDING BREWERS SAY THEY START BECAUSE OF THE SAVINGS THEN ENJOY THE CAMARADERIE IT'S AN EXCUSE TO GET TOGETHER EVERY THREE WEEKS SAYS MARK BAKER A LAWYER WHO BREWS BEER WITH A COUPLE OF FRIENDS AT TORONTO'S SELECT BREWING SERVICES INC IT'S BETTER THAN BOWLING AND NO ONE'S GOING TO GET MAD AT YOU IF YOU'RE HOME BY 1015 IT TAKES ABOUT TWO HOURS TO PREPARE A BATCH OF BEER FOR FERMENTATION THREE WEEKS LATER IT TAKES ANOTHER TWO HOURS TO BOTTLE A BATCH MAKES THE EQUIVALENT OF 24 SIXPACKS SO MOST BUDDING BREWERS ARRIVE WITH FRIENDS AND MAKE A SOCIAL EVENT OF IT IT'S ILLEGAL TO DRINK BEER AT A UBREW A RULE PERHAPS HONORED AS MUCH IN THE BREACH AS IN THE OBSERVANCE THERE'S SOMETHING OF A PARTY ATMOSPHERE AT SELECT BREWING AS COMPUTER CONSULTANT JAY ROSSER AND THREE FRIENDS BATCH UP SOME JAY'S BEST BITTER AN AWARDWINNING RECIPE INVENTED A FEW YEARS AGO BY JAMES TURNER A COOWNER OF SELECT BREW OTHER CONCOCTIONS ARE FAVORED HERE TOO BISHOPS TIPPLE A HEADY BRITISH LIQUOR THAT FOLKS HERE SUGGEST SHOULD BE ADMINISTERED BY EYEDROPPER AND HORNDEAN BEST BITTER THE PERSONAL PREFERENCE OF MR ALLES THE COMPUTER CONSULTANT MR ROSSER AND TINA PRATES A TEACHER ARE DRESSED FOR MESSY WORK IN BAGGY JEANS AND SPORT SHIRTS THEY START THEIR BEST BITTER BY CRACKING THE SPIGOT ON A DRUM OF MALT EXTRACT AND WEIGHING THE STICKY LIQUID AS IT OOZES INTO A BUCKET SIGRID BLOHM CRANKS A HAND MILL NEARBY TO CRUSH PEARL WHITE AND CHOCOLATE BROWN MALTED BARLEYS AND PETER BRUER A TENANT ORGANIZER MEASURES OUT PELLETS OF COMPRESSED HOPS WHOSE HERBAL TRACES GIVE THE RECIPE A DISTINCTIVE BITTER FLAVOR IF THIS BEER TURNS OUT TO BE LOUSY WE'LL BLAME YOU MR BRUER JOSHES MS BLOHM A GRAPHICS DESIGNER WHEN SHE COMMITS THE MINOR NONO OF STIRRING THE HOPS RATHER THAN LETTING THEM STEEP THE GROUP BOILS ALL OF THIS MIXTURE IN A WAISTHIGH KETTLE MAKING WORT OR UNFERMENTED BEER A UBREW EMPLOYEE PUMPS THIS SWEET BROWN LIQUID INTO A PLASTIC FERMENTATION BARREL THEN MR BRUER ADDS THE YEAST IN JAY'S BEST BITTER AN ALE THE YEAST WILL FLOAT ATOP THE WORT DURING FERMENTATION IN LAGERS YEAST DOES ITS WORK AT THE BOTTOM IN THREE WEEKS JAY'S BEST BITTER WILL BE READY EMPLOYEES AT THE UBREW WILL FILTER AND CARBONATE THE BEER BEFORE MR ROSSER AND FRIENDS RETURN TO CAP IT ON THE SHOP'S BOTTLING MACHINE UBREWS USUALLY ARE STEAMY PLACES WITH A CLOYINGLY SWEET SMELL IN THE AIR AS MALT AND HOPS ARE BOILED MS BLOHM SAYS SHE FINDS THE SMELL APPEALING LIKE BAKING BREAD TO OTHERS IT IS CLAUSTROPHOBIC SOME PLACES ARE GUSSIED UP MANY ARE AIRCONDITIONED THOUGH PURISTS AND PENURIOUS OWNERS ARGUE THAT IT RUINS THE TASTE OF THE BEER POLISHED WOODEN FLOORS COPPER COOKING POTS INSTEAD OF STAINLESS STEEL AND EVEN HANGING PLANTS ARE FOUND IN UPSCALE ESTABLISHMENTS ONE UBREW EVEN HAS A MICROSCOPE TO ANALYZE YEAST THE LOOK AT SELECT BREWING WHERE LOYAL CUSTOMERS PRODUCE 300 BATCHES A MONTH THE EQUIVALENT OF 1800 CASES IS MORE RUDIMENTARY WITH CRACKED CONCRETE FLOORS EVEN SO IT CATERS MORE TO EXPERIMENTALLY MINDED CONNOISSEURS THE EMPHASIS IN MOST PLACES IS ON PLAINER STUFF THAT MIMICS MAINSTREAM CANADIAN BREWS PREDICTABLY COMPETITION HAS GROWN IN THIS BURGEONING BUSINESS IN LONDON SEVEN UBREWS NOW SERVE A POPULATION OF ABOUT 300000 THE PHENOMENON HASN'T CAUGHT ON IN THE US WHERE BEER PRICES ARE FAR LOWER ALTHOUGH CANADIAN INVESTORS RECENTLY OPENED ONE IN LOS ANGELES HOPING THAT AFICIONADOS MAY WANT TO MAKE EXOTIC ALES BEER TAXES ARE SKYHIGH IN OTHER CANADIAN PROVINCES BUT LEGAL CONSTRAINTS USUALLY PREVENT TAXFREE BREWING OUTSIDE THE HOME BRITISH COLUMBIA IS THE ONLY OTHER PROVINCE THAT ALLOWS UBREWS IT HAS ABOUT TWO DOZEN OF THEM CONFRONTED WITH SOARING VOLUMES OF AMATEUR OUTPUT ONTARIO'S POWERFUL COMMERCIAL BREWERS BEGAN TO COMPLAIN LAST SPRING DEMANDING EQUAL TAXATION FOR CONSUMER AND CORPORATION ALIKE THE INDUSTRY GOT ITS WAYSORT OF ON AUG 1 ONTARIO BEGAN TAXING UBREW OUTPUT AT ROUGHLY ONETHIRD OF COMMERCIAL RATES A TAX THAT BOOSTED AMATEURS' COSTS TO ABOUT TWOTHIRDS OF RETAIL COMMERCIAL BEER PRICES FROM HALF PREVIOUSLY BUT ONCE UNLEASHED THE UBREW PHENOMENON APPEARS HARD TO STOP PROFITABLE BREWITYOURSELF OUTLETS ARE BEGINNING TO OFFER DISCOUNTS TO PARTIALLY OFFSET THE NEW TAX THEN TOO SOME FANS SAY THEY'RE TOO HOOKED TO STOP SAYS GARY FURLONG A MANAGEMENT CONSULTANT I'D STILL BE DOING IT IF THE COST WERE THE SAME AS THE COMMERCIAL STUFF 9308190076 930819 KODAK TO CUT 8 OF WORK FORCE OR 10000 JOBS MOVE VIEWED AS FIRST STEP AS WHITMORE LEAVES SPENDING CUTS PLANNED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO CHAIRMAN KAY R WHITMORE WHO WAS OUSTED IN JULY AND WILL LEAVE WHEN A SUCCESSOR IS NAMED SAID THE COMPANY WILL CUT 10000 JOBS OR ABOUT 8 OF ITS WORK FORCE BY 1995 AND CUT SPENDING TO INCREASE CASH FLOW BUT PEOPLE CLOSE TO THE COMPANY SAID THE BOARD VIEWS MR WHITMORE'S MOVES AS A FIRST STEP IN A CONTINUING PROCESS THAT WILL BE CARRIED OUT BY HIS SUCCESSOR KODAK IS EXPECTED TO NAME A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY YEAR END INDEED IN HIS LETTER TO SHAREHOLDERS YESTERDAY MR WHITMORE SAID KODAK'S BOARD EXPECTS FASTER AND FURTHER MOVES THAN THOSE HE ANNOUNCED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF THE ROCHESTER NY PHOTOGRAPHY CHEMICALS AND HEALTHCARE CONCERN CLOSED AT 60375 UP 125 CENTS IN HIS LETTER MR WHITMORE SAID MOST OF THE JOB CUTS WILL COME IN KODAK'S CORE IMAGING GROUP WHICH MAKES CONSUMER FILM COPIERS AND OTHER PRODUCTS SINCE THE JOB REDUCTIONS COINCIDE WITH CUTS IN CAPITAL SPENDING AND CAPS ON RESEARCH AND ADVERTISING SPENDING THEY WILL LIKELY COME FROM THE RANKS OF MIDDLE MANAGEMENT NOT BLUECOLLAR WORKERS THE 61YEAROLD MR WHITMORE HAD ORIGINALLY PLANNED TO ANNOUNCE THE JOB CUTS COST CUTS AND CASHFLOW TARGETS AS PART OF A TURNAROUND PLAN TO BE DELIVERED NEXT MONTH BUT THE BOARD SACKED HIM SAYING HIS PLAN FELL SHORT OF ITS EXPECTATIONS ESPECIALLY IN THE AREA OF COSTCUTTING MR WHITMORE SAID HIS PLANS FOR JOB AND COST CUTS WILL HELP KODAK ACHIEVE 700 MILLION IN CASH FLOW THIS YEAR 1 BILLION NEXT YEAR AND 11 BILLION IN 1995 LAST YEAR CASH FLOW WAS 146 MILLION IN THE NEAR TERM THE SAVINGS WILL BE USED TO REDUCE KODAK'S DEBT OUR GOAL IS TO MOVE OUR CREDIT RATING TO A STRONG SINGLE A FROM OUR CURRENT ARATING MR WHITMORE WROTE AT THE END OFLAST YEAR KODAK'S DEBT WAS 89 BILLION THE DEBT IS EXPECTED TO BE REDUCED BY 2 BILLION WHEN KODAK COMPLETES ITS PREVIOUSLY ANNOUNCED SPINOFF OF ITS EASTMAN CHEMICAL UNIT ANALYSTS AGREED WITH THE BOARD THAT THE MOVES MR WHITMORE ANNOUNCED AREN'T ENOUGH TO TURN AROUND KODAK WHERE SLUGGISH FILM SALES HAVE FAILED TO KEEP UP WITH INCREASED SPENDING IN RECENT YEARS KODAK'S LUCRATIVE FILM FRANCHISE HAS LOST MARKET SHARE TO ARCHRIVAL FUJI PHOTO FILM CO AS WELL AS LOWERPRICED PRIVATELABEL COMPETITORS IF THIS IS THE PROGRAM MR WHITMORE PLANNED TO UNVEIL IN SEPTEMBER I'M SURPRISED IT TOOK THEM AS LONG AS IT DID TO FIRE HIM PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON SAID MR HENDERSON SAID HE WAS HOPING FOR A TOTAL OF 25000 TO 30000 JOB CUTS WHICH COULD PRODUCE DOUBLE THE CASHFLOW ESTIMATES MR WHITMORE PROVIDED DEAN WITTER ANALYST EUGENE GLAZER SAID HE WOULD BE SATISFIED IF KODAK CUT A TOTAL OF 20000 WORKERS THAT COULD RESULT IN COST SAVINGS OF ABOUT 15 BILLION HE SAID BUT THE SAVINGS WOULDN'T COME QUICKLY BECAUSE IT WOULD TAKE TIME FOR KODAK TO RESTRUCTURE ITSELF AROUND FEWER WORKERS OTHER ANALYSTS SAID THEY HAVE NO SPECIFIC TARGETS FOR JOB CUTS BUT THEY WERE ENCOURAGED THE BOARD SAID THANKS BUT NO THANKS' THAT'S THE POSITIVE NEWS SAID FIRST BOSTON ANALYST JACK BLACKSTOCK BY PROPOSING TO CAP NOT CUT SPENDING ON RESEARCH AND DEVELOPMENT AND ADVERTISING MR WHITMORE IMPLIED THAT HE WAS LARGELY RELYING ON INCREASED SALES TO GENERATE THE CASH FLOW HE HAS PROMISED TO DELIVER BUT THAT STRATEGY HAS FAILED HIM IN THE PAST BY REJECTING IT KODAK'S BOARD INDICATED THAT IT CAN'T SIT AROUND AND WAIT FOR THE ECONOMY TO BAIL US OUT SAID GOLDMAN SACHS ANALYST JACK KELLY MR WHITMORE'S LETTER REPEATED A PROMISE MADE EARLIER THIS YEAR THAT KODAK WOULD REDUCE CAPITAL SPENDING TO THE LEVEL OF DEPRECIATION THE LETTER ALSO SAID THE COMPANY WOULD PURSUE OPPORTUNITIES TO TURN ASSETS INTO CASH A KODAK SPOKESMAN WOULDN'T SPECULATE ON WHAT ASSETS MIGHT BE PUT ON THE BLOCK BY MR WHITMORE OR A NEW CEO MR WHITMORE WASN'T AVAILABLE FOR COMMENT THE ASSET SALES AS WELL AS THE JOB CUTS WOULD BE SEPARATE FROM KODAK'S PLANS TO SPIN OFF EASTMAN CHEMICAL IN HIS LETTER MR WHITMORE SEEMED TO CONTRADICT HIMSELF ABOUT JUST HOW URGENTLY KODAK NEEDS TO CUT COSTS FOR INSTANCE HE TOLD SHAREHOLDERS THAT THE BOARD IS GENERALLY PLEASED WITH THE CURRENT PROGRESS MADE BY MANAGEMENT TO DEVELOP A PLAN TO TURN AROUND KODAK BUT THEN ADDED THAT HE WAS ASKED TO STEP DOWN PRECISELY BECAUSE HIS PROGRESS DIDN'T MEET THE BOARD'S EXPECTATIONS MR WHITMORE ALSO STRESSED THAT KODAK IS NOT IN CRISIS UNDERLINING THE WORD NOT BUT IN THE NEXT PARAGRAPH WROTE THAT IT IS CLEAR WE MUST CHANGE MORE AND FASTER 9308190075 930819 WHO'S NEWS FORD MOTOR NAMES CASPERS CHAIRMAN OF ITS GERMAN UNIT BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO NAMED A NEW CHAIRMAN ALBERT CASPERS FOR ITS GERMAN UNIT EFFECTIVE IMMEDIATELY AND SAID IT HADN'T YET DETERMINED A NEW ASSIGNMENT FOR THE FORMER CHAIRMAN THE GERMAN PRESS HAS CARRIED REPORTS FOR SEVERAL DAYS THAT JOHN E HARDIMAN CHAIRMAN OF FORD WERKE AG SINCE 1989 WAS GOING TO BE REPLACED BECAUSE OF FORD'S PROBLEMS IN THE GERMAN MARKET HOWEVER A FORD SPOKESMAN YESTERDAY CHARACTERIZED THE MOVE AS PART OF NORMAL MANAGEMENT CHANGES FORD HAS BEEN HURT BY THE CRASH IN THE GERMAN MARKET IN 1992 AND 1993 BEYOND THAT FORD'S SHARE OF THE GERMAN CAR MARKET HAS SLID TO 94 FROM 102 IN 1991 IN ADDITION FORD OF EUROPE'S DECISION TO CONCENTRATE PRODUCTION IN GERMANY AND THEN SELL MANY OF THE VEHICLES BUILT THERE IN ITALY BACKFIRED LAST YEAR WHEN THE GERMAN MARK SOARED AGAINST THE ITALIAN LIRA LAST YEAR FORD SAID IT PLANNED TO SLASH 10000 EMPLOYEES FROM ITS EUROPEAN OPERATION IN 1993 AND TOOK A 419 MILLION SPECIAL CHARGE TO COVER THE EXPENSE IN A RECENT GOVERNMENT FILING FORD SAID IT WAS UNLIKELY THAT IT WOULD MAKE MONEY AT FORD OF EUROPE IN 1993 AND SAID ADDITIONAL RESTRUCTURING AT FORD'S EUROPEAN AUTOMOTIVE OPERATIONS MAY BE NECESSARY IF THE EUROPEAN ECONOMY CONTINUES TO DECLINE THE NEW CHAIRMAN MR CASPERS WILL CONTINUE TO SERVE AS VICE PRESIDENT OF ENGINEERING FOR FORD OF EUROPE MR CASPERS 60 YEARS OLD WAS BORN IN GERMANY AND JOINED FORD WERKE IN 1958 IN ADDITION FORD SAID THAT IT WAS NAMING HEINZ SOIRON 54 TO THE NEWLY CREATED POST OF DEPUTY CHAIRMAN OF FORD'S GERMAN UNIT MR SOIRON CURRENTLY MANAGING DIRECTOR OF FORD SPAIN IS A FORMER DIRECTOR OF MARKETING AND DISTRIBUTION FOR THE GERMAN UNIT IN A PREPARED STATEMENT JACQUES NASSER CHAIRMAN OF FORD OF EUROPE SAID THE APPOINTMENT OF MR CASPERS AND MR SOIRON RECOGNIZES THE CENTRAL IMPORTANCE OF FORD WERKE AG TO FORD IN EUROPE AND WILL ALLOW CLOSER COORDINATION OF OUR MANUFACTURING ENGINEERING AND SALES OPERATION AS A FURTHER STEP IN THE SUCCESSFUL RESTRUCTURING ACTION IMPLEMENTED EARLIER THIS YEAR 9308190074 930819 LETTERS TO THE EDITOR EARLY ZIONIST LEADERS RESCUED EUROPEAN JEWS IN HER JULY 15 LEISURE & ARTS REVIEW OF TOM SEGEV'S THE SEVENTH MILLION AMY DOCKSER MARCUS PROMOTES MR SEGEV FROM JOURNALIST TO HISTORIAN TO SCHOLAR IN TWO SENTENCES MR SEGEV DOES NOT MERIT THESE TWO PROMOTIONS HE IS AN ADVOCACY JOURNALIST WHO STARTS WITH A CONCLUSION SELECTING AND TRIMMING HIS MATERIAL TO MAKE HIS CASE MS DOCKSER MARCUS SUMS UP MR SEGEV'S CONCLUSION THE EARLY ZIONIST LEADERS HAD A CHANCE DURING THE HOLOCAUST TO SAVE JEWS IN EUROPE BUT DIDN'T BELIEVE THAT SUCH A TASK WAS THEIR RESPONSIBILITY MR SEGEV'S TENDENTIOUS EFFORT AT REVISIONIST HISTORY IS CHALLENGED BY THE BOOK OF A GENUINE SCHOLAR DINA PORAT SENIOR LECTURER IN JEWISH HISTORY AT TEL AVIV UNIVERSITY MS PORAT'S THE BLUE AND YELLOW STARS OF DAVID THE ZIONIST LEADERSHIP IN PALESTINE AND THE HOLOCAUST 19391945 PUBLISHED BY HARVARD UNIVERSITY PRESS CONCLUDED HOWEVER ISRAELIS TODAY HAVE LONG SINCE FORGOTTEN OR ARE UNAWARE OF THE DIFFICULTIES FACING THE YISHUV THE JEWISH COMMUNITY IN PALESTINE UNDER THE BRITISH MANDATORY AUTHORITY AT THE TIME IT WAS A MINORITY IN A COUNTRY RULED BY FOREIGNERS IT WAS A SOCIALNATIONAL EXPERIMENT IN ITS EARLY STAGES ITS RESOURCES IN MANPOWER MONEY AND ARMS WERE SMALL NOR DO THEY REALIZE THAT FOR ALL ITS LIMITATIONS AND IN THE FACE OF THE EFFICIENCY OF THE GERMAN DEATH MACHINE AND THE INTERFERENCE OF THE ALLIES THE YISHUV IN FACT DID MORE THAN IT WAS EVER GIVEN CREDIT FOR EITHER THEN OR NOW MR SEGEV AND THE NEW SCHOOL OF ISRAELI HISTORIANS CITED BY MS DOCKSER MARCUS REWRITE HISTORY TO DEPRECATE THE REMARKABLE ACHIEVEMENTS OF THE YISHUV IN RESCUING EUROPEAN JEWISH SURVIVORS AND IN OTHER STRUGGLES AGAINST OVERWHELMING ODDS THESE LEFTWING JOURNALISTS HOPE IN THE EYES OF THE RISING GENERATION THUS TO SCREDIT AS CHAUVINISM ISRAELI NATIONAL PRIDE WHICH THEY SEE AS A THREAT TO THE POLITICAL FUTURE OF THE ISRAELI LEFT 9308190073 930819 WHO'S NEWS IBM NAMES CLAFLIN TO DISTRIBUTION POST FOR ITS PC PRODUCTS ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP NAMED BRUCE CLAFLIN AS PRESIDENT OF IBM PERSONAL COMPUTER CO AMERICAS MR CLAFLIN HAD BEEN GENERAL MANAGER OF MOBILE COMPUTING WHICH INCLUDES THE COMPANY'S HIGHLY ACCLAIMED THINKPAD LINE OF NOTEBOOK COMPUTERS IN THE NEW POST HE SUCCEEDS SAM INMAN III WHO HAS RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF INGRAM MICRO INC SANTA ANA CALIF INGRAM MICRO IS ONE OF THE COUNTRY'S LARGEST DISTRIBUTORS OF COMPUTER PRODUCTS INCLUDING IBM'S PRODUCT LINE IN HIS NEW POST MR CLAFLIN WILL BE RESPONSIBLE FOR THE DISTRIBUTION AND MARKETING OF IBM'S PC PRODUCTS MR CLAFLIN'S UNIT IS IN TURN A SUBSIDIARY OF IBM PERSONAL COMPUTER CO THAT UNIT NAMED ANTHONY E SANTELLI GENERAL MANAGER OF CONSUMER SYSTEMS FOR THE PC UNIT TO BE PRESIDENT OF IBM PC PRODUCTS A NEW POSITION THAT REPORTS TO ROBERT J CORRIGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF IBM PERSONAL COMPUTER CO 9308190072 930819 COCACOLA CHINESE VENTURE HONG KONG COCACOLA CO SAID THE KERRY GROUP ONE OF ITS CHINESE JOINT VENTURES SIGNED A LETTER OF INTENT TO BUILD A BOTTLING PLANT IN CHINA THE SOFTDRINK PLANT WHICH WILL COST ABOUT 30 MILLION WILL BE BUILT IN THE CITY OF WUHAN THE FACILITY IS ONE OF 10 COKE BOTTLING PLANTS PLANNED FOR CHINA'S INLAND CITIES OVER THE NEXT FIVE YEARS SAID THE ATLANTABASED COLA COMPANY 9308190071 930819 MARKETSCAN SOME FIRMS BUCK PRICETRIMMING TREND BY KATHLEEN DEVENY BARGAIN HUNTERS BEWARE AT A TIME WHEN SOME OF THE NATION'S MOST POWERFUL MARKETERS ARE SLASHING THE PRICES OF EVERYTHING FROM DIAPERS TO CIGARETTES PLENTY OF OTHERS ARE TAKING THE OPPOSITE TACK THEY ARE QUIETLY INCREASING PRICES OR CAJOLING CONSUMERS TO BUY NEW MORE EXPENSIVE VERSIONS OF THEIR BRANDS KELLOGG CO FOCUSED ATTENTION ON THE TREND LAST MONTH WHEN IT ANNOUNCED A 21 RISE IN CEREAL PRICES ITS THIRD INCREASE THIS YEAR BUT MAKERS OF PRODUCTS RANGING FROM COLD REMEDIES TO CAT LITTER HAVE ALSO MANAGED TO COAX CONSUMERS UP THE PRICE LADDER ALTHOUGH CONSUMERS AREN'T WILLING TO PAY UP IN EVERY CASE THE STRATEGY HAS WORKED FOR MANY PRODUCTS AND FOR BELEAGUERED MARKETERS OF BIG BRANDS THE GOOD NEWS IS THAT EVEN IN THESE DAYS OF FIERCE PRICE CONSCIOUSNESS AT LEAST SOME CONSUMERS WILL STILL PAY A PREMIUM FOR CERTAIN PRODUCTS A SURVEY OF RETAIL PRICES CONDUCTED BY INFORMATION RESOURCES INC EXCLUSIVELY FOR THE WALL STREET JOURNAL SHOWS THAT GROCERY SHOPPERS PAID MORE FOR A DIVERSE GROUP OF PRODUCTS DURING THE 52 WEEKS ENDED JUNE 20 COMPARED WITH THE PREVIOUS YEAR THE AVERAGE PRICE PER EQUIVALENT UNIT WAS CALCULATED FOR BRANDNAME ITEMS ONLY AND DOES NOT REFLECT SAVINGS FROM COUPONS OR MAILIN REBATE OFFERS CONSUMERS SHELLED OUT ABOUT 20 MORE FOR ICEDTEA DRINKS THAN THEY DID A YEAR AGO FOR EXAMPLE WHILE THE AVERAGE PRICE OF PREPARED FROSTING JUMPED 109 THE AVERAGE PRICE OF COTTAGE CHEESE ROSE 65 AND THE PRICE OF BABY FOOD INCREASED 46 AND THE PRICES OF SUCH MUNDANE ITEMS AS BATH SOAP AND FACIAL TISSUE GREW 45 AND 4 RESPECTIVELY TO BE SURE SUPERMARKETS HAVE BEEN SLASHING PRICES ON THOUSANDS OF ITEMS TO BETTER COMPETE AGAINST SUCH FORMIDABLE NEW RIVALS AS WAREHOUSE CLUBS IN ADDITION MARKETERS LIKE PROCTER & GAMBLE CO AND PHILIP MORRIS COS HAVE BEEN TAKING AIM AT PRIVATELABEL COMPETITORS BY CUTTING PRICES ON SOME OF THEIR BIGGEST BRANDS IT IS DEFINITELY HARDER THAN IT USED TO BE TO RAISE PRICES SAYS NOMI GHEZ A FOOD ANALYST AT GOLDMAN SACHS & CO BUT IT'S NOT IMPOSSIBLE SOME MARKETERS SAY THEY AREN'T GOUGING CONSUMERS WITH PRICE INCREASES BUT ARE MERELY PASSING ALONG INCREASED COMMODITY COSTS AND OTHER EXPENSES FOR EXAMPLE RISING PRICES OF RAW MILK EARLIER THIS YEAR HAVE INCREASED THE COST OF MAKING COTTAGE CHEESE ACCORDING TO A SPOKESMAN FOR BORDEN INC SIMILARLY KELLOGG CO BLAMES RISING CEREAL PRICES ON INCREASING COSTS ALTHOUGH A SPOKESMAN FOR THE WORLD'S LARGEST CEREAL COMPANY DECLINES TO SPECIFY WHICH ARE INCREASING THE MAJORITY OF THE PRICE BOOSTS HOWEVER HAVE FAR MORE TO DO WITH MARKETING THAN MANUFACTURING A WAVE OF NEW ICEDTEA PRODUCTS BACKED BY SUCH POWERFUL MARKETERS AS COCACOLA CO AND PEPSICO INC CAUGHT CONSUMERS' FANCY AND PERSUADED THEM TO PAY MORE FOR THE PRODUCT SIMILARLY TOOTHBRUSH MARKETERS HAVE CLEANED UP BY SPINNING OUT NEW PRODUCTS WITH SUCH IMPROVED FEATURES AS RIPPLED BRISTLES AND HANDLES WITH TINY SHOCK ABSORBERS PRICES WERE UP AN AVERAGE OF 5 AND DOLLAR SALES INCREASED ALMOST 14 BRANDS WITH LARGE MARKET SHARES HAVE MORE PRICE FLEXIBILITY EVEN IN TOUGH ECONOMIC TIMES CAMPBELL SOUP CO WHICH DOMINATES THE MARKET FOR CANNED SOUP AND FACES LITTLE COMPETITION FROM PRIVATELABEL PRODUCTS INCREASED ITS SOUP PRICES ABOUT 5 DURING THE PAST YEAR THE COMPANY SAYS THAT IT STILL OFFERS LARGERSIZED PACKAGES AS BUDGET OPTIONS FOR CONSUMERS WHO FRET PRIMARILY ABOUT PRICE BUT IT ADDS THAT MANY OTHER SHOPPERS WILL FORK OVER SLIGHTLY HIGHER PRICES FOR THEIR FAVORITE BRANDS INFORMATION RESOURCES REPORTS THAT DOLLAR SALES OF SOUP INCREASED 73 DURING THE RECENT 52WEEK PERIOD THE DEATH OF BRANDS HAS BEEN GREATLY EXAGGERATED SAYS BARBARA KAHN AN ASSOCIATE PROFESSOR OF MARKETING AT THE WHARTON BUSINESS SCHOOL IT MAY BE MORE DIFFICULT TO RAISE PRICES NOW SHE SAYS BECAUSE OF THE LONG ECONOMIC SLUMP AND THE INCREASING SOPHISTICATION OF CONSUMERS BUT IF YOU GIVE CONSUMERS PERCEIVED VALUE THEY'LL STILL PAY A HIGHER PRICE THAT'S THE THINKING BEHIND NEW HIGHER PRICED DR SCHOLL'S FOOTCARE PRODUCTS ROLLED OUT IN MARCH BY A UNIT OF SCHERINGPLOUGH CORP THE COMPANY DETERMINED THROUGH MARKET RESEARCH THAT SOME HEAVY USERS OF ITS PRODUCTS FELT ITS INSOLES DIDN'T LAST LONG ENOUGH AT THE SAME TIME IT SET OUT TO REACH THE GROWING NUMBER OF AGING BOOMERS WHO WERE BEGINNING TO EXPERIENCE ACHY FEET THE COMPANY RELAUNCHED THE ENTIRE BRAND ADDING 18 NEW ITEMS AMONG THE INNOVATIONS CUSHIER MORE DURABLE INSOLES AND TOE SQUISH PREVENTERS PADS MEANT TO KEEP WOMEN'S FEET FROM BEING SQUASHED INTO THE POINTY TOES OF HIGHHEELED SHOES TO REACH CONSUMERS WHO AREN'T IN THE HABIT OF BUYING INSOLES THE COMPANY SAYS IT WILL SPEND 20 MILLION TO PROMOTE THE BRAND SOME 9 MILLION OF THAT WILL BE SPENT ON MEDIA INCLUDING ONE TELEVISION COMMERCIAL THAT SHOWS A SUMO WRESTLER ON THE SHOULDERS OF A MAN DRESSED IN A BUSINESS SUIT IN AN EFFORT TO ILLUSTRATE THE POUNDING CONSUMERS' FEET TAKE EVERY DAY THE COMPANY IS ALSO TUCKING COUPONS FOR THE NEW PRODUCTS IN PACKAGES OF ITS EXISTING LINE WE RECOGNIZED WE HAVE TWO TIERS OF CONSUMERS SAYS FRED FRITZ SENIOR VICE PRESIDENT OF FOOTCARE MARKETING AND SALES FOR SCHERINGPLOUGH IF THOSE PEOPLE SEE A BETTER PERFORMING PRODUCT THEY'LL PAY A LOT MORE FOR IT THEY'LL HAVE TO DR SCHOLL HAS RETAINED ITS TRADITIONAL AIR PILLO INSOLES WHICH SELL FOR ABOUT 2 BUT ITS NEW MAXIMUM COMFORT PRODUCTS RANGE IN PRICE FROM 5 TO 9 THERE ARE ALWAYS CONSUMERS WHO ARE WILLING TO PAY MORE THAN OTHERS SAYS STEVE ROTH A DIRECTOR FOR RESEARCH INTERNATIONAL CONSULTING IN NEW YORK FIGURING OUT WHO THOSE CONSUMERS ARE IS CRITICAL TO NEW PRODUCT DEVELOPMENT INNOVATIVE PRODUCTS AIMED AT ONE SUCH CONSUMER GROUP URBAN CAT OWNERS HAVE ALLOWED EVEN MAKERS OF LOWLY CAT LITTER TO PERSUADE CONSUMERS TO TRADE UP FOR YEARS CATBOX FILLER HAS CONSISTED MOSTLY OF BAGS OF CLAY MORE RECENTLY HOWEVER NEARLY EVERY MAJOR MANUFACTURER HAS LAUNCHED A VERSION OF CLUMPING FILLER WHICH IS MADE FROM A HIGHLY ABSORBENT MATERIAL THAT SOLIDIFIES AROUND LIQUID THE NEW LITTER WHICH ALLOWS FOR EASIER CLEANUP AND COMES PACKAGED IN MORE PORTABLE PLASTIC JUGS ALREADY ACCOUNTS FOR AS MUCH AS A THIRD OF CATEGORY SALES CATLITTER PRICES ROSE MORE THAN 8 IN THE YEAR ENDED JUNE 20 RESULTING IN A 12 INCREASE IN DOLLAR SALES THERE HAS BEEN INNOVATION IN THE CATEGORY SAYS JOHN GOODCHILD PRESIDENT OF WEIGHTMAN GROUP AN ADVERTISING AGENCY IN PHILADELPHIA THAT HANDLES THE ACCOUNT OF GOLDEN CAT CORP MAKER OF THE LEADING TIDY CAT BRAND IF YOU GIVE CONSUMERS SOMETHING THEY WANT YOU CAN SHARE IN THE VALUE THE STRATEGY ISN'T FOOLPROOF THOUGH GERBER PRODUCTS CO THE LARGEST MAKER OF BABY FOOD WATCHED ITS SALES AND MARKET SHARE SLIDE AFTER IT INCREASED PRICES 55 LAST SEPTEMBER AVERAGE BABY FOOD PRICES ROSE 46 DURING THE RECENT 52WEEK PERIOD ACCORDING TO INFORMATION RESOURCES AND OVERALL SALES OF BABY FOOD MEASURED IN POUNDS SANK 38 WHILE DOLLAR SALES WERE FLAT 9308190070 930819 DIVIDEND NEWS CFSB BANCORP INC CFSB BANCORP INC LANSING MICH ANNOUNCED A 4FOR3 STOCK SPLIT THE DIVIDEND WILL BE DISTRIBUTED SEPT 15 TO STOCK OF RECORD AUG 31 THE SPLIT EXPANDS THE NUMBER OF SHARES OUTSTANDING 33 TO ABOUT 3725000 SHARES 9308190069 930819 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN CHINESE ECONOMIC DEVELOPMENT ZONES NOW CONCENTRATED ON THE EASTERN COAST WILL BE OPENED INLAND AND IN WESTERN RIVERSIDE REGIONS TO HELP BRIDGE THE GAP BETWEEN FLOURISHING COASTAL AREAS AND THE LARGELY POOR AND UNDERDEVELOPED HINTERLAND THE ZONES WHICH OFFER TAX BENEFITS TO ATTRACT FOREIGN INVESTMENT AND TRADE WOULD GIVE THE AREAS A MUCHNEEDED ECONOMIC LIFT SHIFTING ZONES TO THE WEST ALSO IS A STEP TOWARD A UNIFIED CHINESE TRADE POLICY A PREREQUISITE FOR ADMITTANCE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE INVESTORS WOULD FIND IT EASIER TO TAP CHINA'S VAST NATURAL RESOURCES AND TO WORK WITH MILITARY INDUSTRIES WHICH ARE SHELTERED IN INLAND AREAS AND ARE INCREASINGLY TURNING TO CIVILIAN PRODUCTION MEANWHILE GOVERNMENT EFFORTS TO COOL SPECULATION HAVE HAD INITIAL SUCCESS NEW CONSTRUCTION AND PURCHASES OF RAW MATERIALS SLOWED IN JULY AND BANKS RECOVERED 308 BILLION IN BAD LOANS ITALIAN POLICE ARRESTED FOUR FOREIGNERS IN CONNECTION WITH AN ALLEGED PLOT TO SMUGGLE 75 MILLION OF SOPHISTICATED WEAPONRY FROM EASTERN EUROPE TO THE MIDDLE EAST THE FOUR ALLEGEDLY SIGNED A CONTRACT TO SUPPLY TANKS AND RADAR DEFENSE SYSTEMS PLUS TECHNICAL ASSISTANCE TO TWO UNIDENTIFIED MIDEAST COUNTRIES THAT ARE UNDER WESTERN ARMS EMBARGOES THE CONTRACT HAD BEEN SIGNED BY YUGOSLAVIA BUT WAS CEDED TO ANOTHER UNIDENTIFIED EAST EUROPEAN COUNTRY AFTER WAR FLARED IN THE BALKANS THE SUSPECTS THREE NATIONALS OF THE FORMER YUGOSLAVIA AND A BRITON USED ROME AS A BASE WITH THE ARMS DESTINED FOR DELIVERY THROUGH A BLACK SEA PORT A FIRE DESTROYED MOST OF A LANDMARK 14THCENTURY COVERED WOODEN BRIDGE IN LUCERNE SWITZERLAND AND CAUSED EXTENSIVE DAMAGE TO MORE THAN 100 HISTORICAL PAINTINGS THAT HAVE ADORNED THE 200YARD CHAPEL BRIDGE SINCE THE EARLY 17TH CENTURY THE CAUSE OF THE BLAZE WASN'T KNOWN A 13THCENTURY WATER TOWER AT ONE END OF THE BRIDGE WAS SPARED BUT FIREFIGHTERS COULDN'T KEEP THE BRIDGE'S CENTRAL SECTION FROM COLLAPSING INTO THE REUSS RIVER THE BRIDGE WAS PART OF THE OLD CITY'S DEFENSIVE WALL MUCH OF WHICH STILL STANDS CHINA'S FIRST RULES ON MANAGING NUCLEAR POWER PLANT ACCIDENTS PUT THE ARMY FIRMLY IN COMMAND OF RESCUE EFFORTS IN AN EMERGENCY THE REGULATIONS COVER EMERGENCY PREPARATIONS DISSEMINATION OF INFORMATION AND DISTRIBUTION OF FUNDS AND MATERIALS FOR RESCUE WORK CHINA HAS ONE NUCLEAR POWER PLANT IN OPERATION THE 300MEGAWATT FACILITY AT QINSHAN IN CENTRAL ZHEJIANG PROVINCE CONCERNS ABOUT SAFETY STANDARDS GREW AFTER AN AUG 5 BLAST AT A SHENZHEN DANGEROUSMATERIAL DEPOT THAT KILLED AT LEAST 15 PEOPLE NIPPON CARBURETOR CO A JAPANESE AUTO PARTS MAKER AFFILIATED WITH NISSAN MOTOR CO PLANS TO DISMISS ITS FOREIGN WORKERS BY MARCH 1995 TO DEAL WITH SLUMPING SALES THE DISMISSALS AT THE PLANT IN ATSUGI PART OF A RESTRUCTURING PLAN WILL BEGIN IN OCTOBER MOST OF THE 70 WORKERS AFFECTED ARE ETHNIC JAPANESE FROM BRAZIL THE COMPANY'S FISCAL 1994 PRODUCTION COULD BE HALVED BECAUSE OF THE DEPRESSED AUTO MARKET NIPPON CARBURETOR HAS HAD LOSSES FOR THE PAST TWO FISCAL YEARS CRIPPLED BY ECONOMIC TROUBLES INCLUDING RUNAWAY INFLATION OF MORE THAN 15 A DAY YUGOSLAVIA'S REMAINING REPUBLICS ONCE AGAIN SHARPLY DEVALUED THE NATIONAL CURRENCY A DOLLAR IS NOW OFFICIALLY WORTH 105 MILLION DINARS COMPARED WITH THE PREVIOUS RATE OF 49 MILLION DINARS BLACKMARKET DEALERS ALREADY ARE OFFERING 152 MILLION DINARS INTERNATIONAL SANCTIONS IMPOSED IN MAY 1992 BECAUSE OF THE BOSNIAN WAR HAVE WRECKED THE ECONOMY FEARING SOCIAL UNREST YUGOSLAV AUTHORITIES HAVE INDISCRIMINATELY PRINTED MONEY FURTHER FUELING INFLATION WOMEN GRADUATING FROM JAPANESE COLLEGES NEXT YEAR FACE THE TOUGHEST JOB MARKET IN YEARS AS THE SLUGGISH ECONOMY FORCES COMPANIES TO RAISE HURDLES AND SHRINK RECRUITMENT OPPORTUNITIES TRADITIONALLY JAPANESE BLUECHIP FIRMS ISSUE JOB OFFERS BY THE SECOND WEEK OF JULY WOMEN WHO HAVE SOME PRIOR CONNECTION TO LARGE COMPANIES WERE FIRST TO GET OFFERS BUT THOSE WITH A GAP BETWEEN HIGH SCHOOL AND COLLEGE OR WHO GREW UP ABROAD ARE STRUGGLING THERE WILL BE ONLY 79 JOB OPENINGS IN APRIL 1994 FOR EVERY 100 FEMALE COLLEGE STUDENTS COMPARED WITH 93 OPENINGS THIS YEAR AND 158 OPENINGS IN 1991 SOME COMPANIES ARE TELLING FEMALE CANDIDATES THEY WON'T HIRE WOMEN THIS YEAR AND OTHERS REFUSE TO GIVE THEM COMPANY MATERIALS THE LABOR MINISTRY WARNED BUSINESSES LAST MONTH TO OBSERVE ANTIDISCRIMINATION LAWS AND IT SET UP SPECIAL DESKS FOR WOMEN TO GET ADVICE AND REPORT UNFAIR TREATMENT BY EMPLOYMENT OFFICERS HOWEVER SOME SMALL AND MEDIUMSIZE COMPANIES ARE WILLING TO RECRUIT COMPETENT WOMEN AND HAVE OPENINGS FOR NEXT YEAR MOST TRAIN TRAFFIC WAS RESTORED IN ROMANIA AFTER THOUSANDS OF STRIKING RAIL WORKERS GAVE IN TO A GOVERNMENT ULTIMATUM TO RETURN TO WORK OR LOSE THEIR JOBS A SOUTH KOREAN COURT LEGALIZED WASHING CUSTOMERS' FEET AT BARBER SHOPS RULING THAT IT WASN'T A SEXUAL SERVICE OFFICIALS IN CHINA'S HAINAN PROVINCE ARE RAISING FUNDS TO MAKE A TOURIST ATTRACTION OUT OF A MOUNTAIN THAT IS SAID TO LOOK JUST LIKE REVOLUTIONARY LEADER MAO TSETUNG 9308190068 930819 DIVIDEND NEWS GENERAL NUTRITION CO GENERAL NUTRITION CO PITTSBURGH THE SPECIALTY RETAILER OF VITAMIN AND MINERAL SUPPLEMENTS AND PERSONAL CARE AND FITNESS PRODUCTS SAID IT DECLARED A 2FOR1 COMMON STOCK SPLIT WHICH WILL BE EFFECTED AS A 100 STOCK DIVIDEND PAYABLE OCT 5 TO SHAREHOLDERS OF RECORD SEPT 7 THE COMPANY SAID THE STOCK SPLIT IS SUBJECT TO SHAREHOLDER APPROVAL OF AN INCREASE IN THE NUMBER OF AUTHORIZED COMMON SHARES TO AN AMOUNT THAT WOULD PERMIT THE PROPOSED SPLIT GENERAL NUTRITION SAID IT PLANS TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES TO 100 MILLION FROM THE CURRENT 42 MILLION THE COMPANY'S BOARD HAS SET A SPECIAL SHAREHOLDER MEETING FOR SEPT 30 FOR THE VOTE ON THE PROPOSED INCREASE A SPOKESMAN FOR GENERAL NUTRITION SAID IT CURRENTLY HAS 18790687 COMMON SHARES OUTSTANDING 9308190067 930819 INTERNATIONAL THOMSON'S RCA UNIT IS NO TV BONANZA FRENCH COMPANY NARROWS LOSSES AT US ACQUISITION BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS WHEN THE FRENCH GOVERNMENT TOOK OVER A US INDUSTRIAL ICON IT LEARNED SOMETHING TEENAGERS DISCOVER WHEN THEY FIX UP A '57 THUNDERBIRD THE PURCHASE PRICE MAY BE HIGH BUT THE UPKEEP IS MURDEROUS THOMSON CONSUMER ELECTRONICS SA OF FRANCE BOUGHT THE LEGENDARY RCA CONSUMER ELECTRONICS BUSINESS FIVE YEARS AGO OVERNIGHT MAKING THE STATEOWNED FRENCH CONCERN THE LARGEST TELEVISIONSET PRODUCER IN THE US THE FRENCH CALLED THEIR ACQUISITION OF THE COMPANY THAT DEVELOPED COLOR TELEVISION IN THE US THE START OF A DARING CHALLENGE TO THE JAPANESE AN EFFORT TO SUCCEED WHERE RCA'S AMERICAN OWNERS HAD FAILED IN FACT THE FRENCH PROMPTLY DESCENDED INTO DEBT MANAGEMENT TROUBLE AND RED INK RCA'S MARRIAGE WITH FRANCE HAS PROVED A ROCKY ONE RICH IN IRONY IN DRAMA AND IN LESSONS ABOUT AMERICA'S INDUSTRIAL FUTURE THE EXPERIENCE SHOWS HOW HARD IT IS TO MANAGE A BIG INDUSTRIAL ACQUISITION ACROSS NATIONAL AND CULTURAL BORDERS CURIOUSLY ENOUGH IT ALSO SHOWS HOW TENACIOUS A CORPORATE CULTURE SUCH AS RCA'S CAN BE LIKE THE TEENAGER WITH THE TBIRD THE FRENCH PUT A FORTUNE INTO RCA WHOSE MAIN PRODUCTS REMAIN TELEVISION SETS VIDEOCASSETTE RECORDERS CAMCORDERS AND AUDIO EQUIPMENT THE ACQUISITION INCLUDING THE RCA AND GE CONSUMER ELECTRONICS BRANDS COST MORE THAN 1 BILLION IN CASH AND ASSETS THEN CAME CAPITAL INVESTMENT WHICH HAS ALREADY EXCEEDED 400 MILLION PLUS MILLIONS MORE FOR INTEREST RESEARCH AND REPEATED RESTRUCTURING BAFFLED BY THE ROUGH AND TUMBLE US CONSUMER ELECTRONICS MARKET THE FRENCH LEFT MOST MANAGEMENT TO A SERIES OF AMERICAN EXECUTIVES WHO CAME AND WENT A BIT FASTER THAN INTENDED RCA SAYS SALES AND RESULTS FINALLY STARTED IMPROVING LAST YEAR THE FRENCH CLAIM AS THEY SOMETIMES HAVE BEFORE THAT THEY ARE TURNING THE CORNER BUT UP TO NOW BURDENED BY HEAVY DEBT FROM THE ACQUISITION AND FROM LOSSES SINCE THEN RCA HAS SERVED MAINLY AS A CASH DRAIN ON ITS FRENCH SUGAR DADDY WE CAN FINALLY SAY THAT THE BUSINESS IS HEALTHY INSISTS RCA'S TOP US OFFICIAL JOSEPH CLAYTON A MARKETING WHIZ OR ON THE ROAD TO RECOVERY HE AMENDS THOMSON IS ONE OF MANY FOREIGN COMPANIES THAT MADE BIG US ACQUISITIONS IN THE 1980S EXECUTIVES FROM OTHER COMPANIES SAY PAINFUL EXPERIENCES SUCH AS THOMSON'S HAVE BEEN SURPRISINGLY COMMON IN SOME CASES LIKE THIS ONE THE TARGET COMPANY SEEMS TO FARE BETTER THAN THE BUYER RCA WAS ON THE SKIDS BEFORE THE FRENCH ARRIVED IT WAS ACQUIRED IN 1986 BY ARCHRIVAL GENERAL ELECTRIC CO WHICH MERGED ITS OWN SMALLER CONSUMERELECTRONICS ACTIVITIES WITH RCA'S BUT JOHN WELCH GE'S CHAIRMAN SOURED ON THE LOWMARGIN BUSINESS KEEPING ASSETS SUCH AS THE NBC TELEVISION NETWORK HE SOLD THE CONSUMERELECTRONICS OPERATIONS TO THOMSON NEGOTIATING THE SALE WHILE ATTENDING THE 1987 FRENCH OPEN TENNIS CHAMPIONSHIP IT WAS A SHOCK FOR ALL CONCERNED STAGGERING UNDER THE CASH DRAIN OF BRINGING OUT PRODUCTS TO FIGHT THE HARDCHARGING JAPANESE ALAIN GOMEZ CHAIRMAN OF THOMSON SA THE PARENT COMPANY AT ONE POINT TRIED AND FAILED TO UNLOAD THE BUSINESS TO ANOTHER FRENCH GOVERNMENT AGENCY IT HAS BEEN SAID THAT ANYONE ENTERING OR EXPANDING IN THE CONSUMER ELECTRONICS BUSINESS IS NUTS SAYS DAVID LACHENBRUCH EDITORIAL DIRECTOR OF THE TRADE NEWSLETTER TELEVISION DIGEST RIGHT NOW HE SAYS IT IS QUITE POSSIBLE THAT ALMOST NOBODY IS TURNING A PROFIT MAKING TELEVISION SETS ONE WAY TO UNDERSTAND THE PROBLEM IS TO VISIT RCA'S SPRAWLING TELEVISIONSET ASSEMBLY PLANT IN BLOOMINGTON IND IT IS THE WORLD'S LARGEST TELEVISIONSET FACTORY WHERE THE WORLD'S FIRST COMMERCIAL COLOR SET WAS ASSEMBLED IN 1954 RCA SAYS PROUDLY IT ALSO IS THE WORLD'S OLDEST TELEVISION PLANT WITH SOME OF THE INDUSTRY'S COSTLIEST LABOR THE AVERAGE EMPLOYEE AT THE FULLY UNIONIZED PLANT IS 47 YEARS OLD PLANT MANAGER DJ WALSH SAYS LABOR COSTS ROUGHLY TWICE WHAT JAPANESE COMPETITORS PAY AT NEWER FACTORIES THEY HAVE SET UP IN OTHER STATES WITH YOUNG NONUNION EMPLOYEES TO CUT LABOR COSTS THE FRENCH SPENT 32 MILLION ON AUTOMATION IN BLOOMINGTON ALONE BUT BECAUSE ASSEMBLY LINES MUST BE MODIFIED REGULARLY AS PRODUCTS CHANGE THAT CREATED ITS OWN PROBLEMS THE LINES WITHOUT AUTOMATION ARE EASY TO CONVERT SAYS MR WALSH ADDING BUT WITH AUTOMATION IT GETS VERY EXPENSIVE WE NEVER WOULD GO BACK TO THIS LEVEL OF AUTOMATION AGAIN FINDING MANAGERS CAPABLE OF RUNNING THE DIVERSE INTERNATIONAL BUSINESS HAS BEEN JUST AS TOUGH THOMSON'S PARIS HEADQUARTERS CURRENTLY IS ON ITS THIRD WORLDWIDE CONSUMER ELECTRONICS CHIEF SINCE 1988 THE FOURTH IF YOU COUNT RICHARD MILLER AN AMERICAN WHO WAS CHOSEN FOR THE JOB IN 1988 BUT QUIT FIRST WHEN ALAIN PRESTAT A FORMER AIDE TO THE THENPRIME MINISTER GOT THE JOB LAST YEAR NINE OF THE 12 PEOPLE WHO REPORTED TO HIM QUIT OR WERE FIRED ONE UNEXPECTED RESULT OF THE TURMOIL HAS BEEN THE REEMERGENCE OF THE RCA BUSINESS CULTURE GE PEOPLE HAD GRABBED MOST OF THE TOP JOBS AFTER THE GE TAKEOVER BUT RCA'S VETERAN MARKETERS PROVED BETTER AT WEATHERING STORMS APART FROM FINANCE RUN BY A FRENCHMAN RCA PEOPLE SUCH AS MR CLAYTON TODAY HAVE RECAPTURED ALMOST ALL THE TOP US JOBS RCA SAYS US OPERATING RESULTS INCHED INTO THE BLACK LAST YEAR NOT COUNTING MILLIONS SPENT ON THINGS SUCH AS BASIC RESEARCH AND INTEREST THOMSON SAYS RCA'S US PROGRESS HAS HELPED CUT ITS OWN OVERALL CONSUMERELECTRONICS LOSSES MR CLAYTON IS SHIFTING SALES TOWARD HIGHERMARGIN TELEVISION SETS WITH SCREENS LARGER THAN 30 INCHES A BUSINESS ONCE DOMINATED BY THE JAPANESE RCA HAS HIRED A YOUNG DESIGN TEAM WHICH IS WINNING AWARDS FOR ITS CREATIVE WORK DESIGNER ROB HUBER IS TRYING TO INVENT A FLEXIBLE AUDIO BOOM BOX HE CALLS A HIP BOX WHICH MUSIC LOVERS CAN BUCKLE AROUND THEIR WAIST THIS YEAR RCA FORMED AN ALLIANCE WITH OTHER US AND EUROPEAN COMPANIES TO DEVELOP THE TECHNOLOGY OF THE FUTURE HIGHDEFINITION TELEVISION AN AREA WHERE JAPAN HAS STUMBLED IT ALSO FORMED AN ALLIANCE WITH GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT TO BROADCAST PROGRAMS BY SATELLITE WHICH MR CLAYTON HOPES EVENTUALLY WILL GENERATE 1 BILLION IN ANNUAL SALES BUT THE FUTURE PICTURE IS FAR FROM CLEAR SUPPORTERS OF HIGHDEFINITION TELEVISION ACKNOWLEDGE THAT THERE ISN'T ANY GUARANTEE THE TECHNOLOGY THOMSON'S GREAT HOPE WILL PREVAIL IN THE MARKETPLACE HDTV DEVELOPMENT IS ONE OF THOMSON'S BIGGEST BURDENS IN PART BECAUSE IT HASN'T MANAGED TO LINK ITS SEPARATE COSTLY US AND EUROPEAN PROGRAMS INCLUDING INTEREST RESTRUCTURING AND RESEARCH THOMSON'S WORLDWIDE CONSUMER ELECTRONICS GROUP POSTED A NET LOSS OF 177 BILLION FRENCH FRANCS 2971 MILLION LAST YEAR AFTER A 248 BILLIONFRANC LOSS IN 1991 AND A 275 BILLIONFRANC LOSS IN 1990 THE FRENCH GOVERNMENT HAS PUMPED IN THREE BILLION FRANCS OF NEW CAPITAL SINCE 1988 THE FRENCH SOMETIMES MAKE SURPRISING FINANCIAL CHOICES CURRENTLY THOMSON IS SPENDING 50 MILLION ON A FANCY NEW INDIANAPOLIS HEADQUARTERS FOR ITS US OPERATIONS BUT OVERALL LOSSES HOLD BACK SPENDING ON ESSENTIALS SUCH AS PRODUCT DEVELOPMENT THERE'S NO QUESTION THAT WE HAVE TO BE MORE FOCUSED THAN THE JAPANESE SAYS RCA'S MR CLAYTON WHILE THE JAPANESE PURSUE MINICOMPACT DISKS AND OTHER SPINOFF PRODUCTS WE HAVE TO FOCUS ON TV WE CAN'T WALK AND CHEW GUM AT THE SAME TIME 9308190066 930819 ROLE OF PRIVATE INSURERS IN MEDICARE IS QUESTIONED WASHINGTON A REPORT ON PRIVATE INSURANCE CARRIERS IN THE MEDICARE PROGRAM THAT PAYS DOCTOR BILLS SHOWS THAT MOST OF THE CLAIMS DENIED ON MEDICAL GROUNDS AREN'T REVIEWED BY QUALIFIED HEALTHCARE PROFESSIONALS THE STUDY BY THE GENERAL ACCOUNTING OFFICE CONGRESS'S INVESTIGATIVE ARM SAYS THAT TIME CONSTRAINTS FOR MAKING DECISIONS WEAKNESSES IN SOME QUALITY CONTROL METHODS AND OTHER FACTORS RAISE QUESTIONS ABOUT THE SYSTEM'S POTENTIAL FOR TREATING MEDICARE CLAIMANTS CONSISTENTLY REP RON WYDEN AN OREGON DEMOCRAT WHO ORDERED THE GAO REPORT CHARGED THAT THE BULK OF MEDICARE CLAIMS ARE REVIEWED BY HIGH SCHOOLEDUCATED CLAIMS PROCESSORS WHO ARE FORCED TO PASS JUDGMENT ON AS MANY AS 400 CLAIMS PER WORKING DAY MORE THAN A THIRD OF THE CLAIMS THAT ARE REJECTED ARE DONE SO ON GROUNDS THAT THE SERVICES WEREN'T MEDICALLY NECESSARY REP WYDEN SAID FURTHER SCRUTINY IS NEEDED OF THE ROLE OF PRIVATE INSURERS IN MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED 9308190065 930819 MARKETING & MEDIA CAPITAL CITIES/ABC SIGNS AGREEMENT WITH TIME TO CARRY NEW SPORTS CHANNEL BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC SIGNED A PACT WITH TIME WARNER INC CABLE SYSTEMS FOR CARRYING ITS NEW ESPN2 SPORTS CHANNEL ACCELERATING THE ALREADY FAST START FOR THE NEW SERVICE ESPN2 OWNED BY CAPITAL CITIES/ABC AND PARTNER HEARST CORP HAS NOW LINED UP EVENTUAL CARRIAGE BY CABLE GIANT TIME WARNER AND 15 OTHER CABLE OPERATORS REACHING A COMBINED TOTAL OF MORE THAN 20 MILLION HOMES BEFORE THE NEW SERVICE HAS SO MUCH AS AIRED ITS FIRST BEACHVOLLEYBALL GAME STEVEN BORNSTEIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ESPN AND ITS SPINOFF SAID THE CABLE DEALS WILL MAKE ESPN2 A LOT MORE MEANINGFUL TO MADISON AVENUE A WHOLE LOT SOONER WITHIN TWO YEARS RATHER THAN THE FIVEYEAR ROLLOUT IT WOULD NORMALLY HAVE FACED THE LATEST PACT IS PART OF RETRANSMISSION CONSENT NEGOTIATIONS REQUIRED UNDER THE 1992 CABLE ACT LETTING LOCAL TELEVISION STATIONS FOR THE FIRST TIME CHARGE CABLE SYSTEMS FOR CARRYING STATION PROGRAMMING RATHER THAN TRY TO IMPOSE CASH FEES WHICH CABLE SYSTEMS HAVE ARDENTLY OPPOSED ABC AND HEARST WHICH BOTH OWN TV STATIONS INSTEAD GOT TIME WARNER AND OTHER CABLE COMPANIES TO AGREE TO PAY THEM FOR CARRYING ESPN2 THE AGREEMENTS ARE A BONANZA FOR ESPN2 AND OTHER NEW CABLE SERVICES ROLLING OUT AS PART OF THE DICKERING BETWEEN CABLE AND BROADCASTERS THE PACTS UNDERSCORE A CENTRAL IRONY EMERGING FROM THE NEW CABLE LAW ALTHOUGH THE RETRANSMISSION MEASURE WAS DESIGNED TO BENEFIT BROADCAST STATIONS INSTEAD THE BROADCASTERS ARE USING IT TO GAIN ENTRY INTO THE CABLE BUSINESS BROADCAST EXECUTIVES HOWEVER SAY THAT TREND IS BECAUSE THEY HAVE NO CASE MICHAEL MALLARDI PRESIDENT OF CAPITAL CITIES/ABC'S TV STATION GROUP SAID HE IS SEEKING CASH FEES FROM CABLE OPERATORS BUT THUS FAR HAS SETTLED FOR CABLE OPERATORS' COMMITMENT TO CARRY ESPN2 ON THEIR SYSTEMS CABLE OPERATORS HAVE ALL BUT IGNORED NEW CHANNEL LAUNCHES LATELY LARGELY BECAUSE OF LIMITED CHANNEL CAPACITY AND UNCERTAINTY OVER NEW RATE REGULATIONS BUT EARLIER THIS WEEK TIME WARNER SIGNED A SIMILAR DEAL WITH GENERAL ELECTRIC CO'S NBC UNIT AGREEING TO CARRY A NEW CHANNEL CALLED AMERICA'S TALKING AND NEWS CORP'S FOX INC HAS WON CARRIAGE FOR ITS NEW FOX BASIC CABLE CHANNEL ON CABLE SYSTEMS OWNED BY TELECOMMUNICATIONS INC WITH ESPN2 ABC AND HEARST HOPE TO LURE VIEWERS YOUNGER THAN THOSE WATCHING ESPN SPECIFICALLY ADULTS 18 TO 34 YEARS OLD WITH ENTERTAINMENTORIENTED SPORTS SHOWS LIKE MAX OUT A SERIES FEATURING EXTREME SPORTS SUCH AS SKYSURFING SET TO ROCK MUSIC NBC HAS ITS SIGHTS SET ON TALKSHOW FANS WITH AMERICA'S TALKING WHICH WILL COMBINE THE TALK SHOW FORMAT WITH PREVAILING NEWS TOPICS OF THE DAY 9308190064 930819 LEISURE & ARTS FILM WOODY ALLEN LITE A CHILD REDEEMED BY JULIE SALAMON WOODY ALLEN WAS FILMING MANHATTAN MURDER MYSTERY DURING HIS WELLPUBLICIZED CHILDCUSTODY/CHILDROMANCE FIGHT WITH MIA FARROW FITTINGLY THE CHARACTER HE PLAYS IN THE MOVIE SEEMS LIKE THE CREATION OF A MAN GETTING READY TO APPEAR BEFORE THE PAROLE BOARD OF PUBLIC OPINION BY CASTING HIMSELF AS THE MOVIE'S ONLY REALLY RATIONAL CHARACTER MR ALLEN SEEMS TO BE SAYING LOOK WHAT A GOOD GUY I CAN BE AT LEAST IN MY MOVIES MR ALLEN AS LARRY THE BOOK EDITOR IS LEVELHEADED WHEN EVERYONE ELSE IS HYSTERICAL NOT ONLY THAT THIS MOVIE CHARACTER IS A DOTING FATHER AND AN ADORING FAITHFUL HUSBAND TO HIS WIFE WHO IS ALSO THE MOTHER OF HIS CHILD AND PERHAPS MOST IMPORTANT TO WOODY ALLEN FANS LARRY IS A VERY AMUSING QUIPSTER IN GENERAL MANHATTAN MURDER MYSTERY MR ALLEN'S 23RD FEATURE FILM HAS THE FEELING OF A GOODWILL GESTURE THIS FROTHY JOKEY PICTURE AIMS TO PLEASE AND IT DOES MOSTLY IT ESPECIALLY AIMS AT THOSE PEOPLE WHO COMPLAIN THEY LIKED WOODY BETTER WHEN HE WAS FUNNY UNLIKE LAST YEAR'S BITTERLY COMIC HUSBANDS AND WIVES WHICH SEEMED LIKE A PUBLIC AIRING OF THE FARROWALLEN DIRTY LAUNDRY MANHATTAN MURDER MYSTERY IS DELIBERATELY BREEZY STILL IT'S HARD NOT TO DISSECT SOME LINES FOR THEIR POTENTIAL LINK TO REAL LIFE WHEN LARRY/WOODY DESCRIBES HIMSELF AS A WORLDFAMOUS CLAUSTROPHOBIC ONE WONDERS IF THIS IS A REFERENCE TO MR ALLEN'S DEFENSE AGAINST THE ACCUSATION THAT HE MOLESTED HIS ADOPTED DAUGHTER IN AN ATTIC IT COULDN'T HAVE HAPPENED HE SAID BECAUSE I'M CLAUSTROPHOBIC AS HE DID IN HUSBANDS AND WIVES MR ALLEN HAD CINEMATOGRAPHER CARLO DI PALMA SHOOT THIS MOVIE IN THE YOUARETHERE STYLE OF A DOCUMENTARY THOUGH THE JERKY CAMERA ACTION SOMETIMES MAKES YOU DIZZY IT SEEMS APPROPRIATE TO THIS LOOSELIMBED LITTLE PICTURE'S LACK OF PRETENSION IT'S NOT MUCH MORE THAN A LONG SKIT PATCHED TOGETHER WITH JOKES BUT MR ALLEN AND HIS PERENNIAL COWRITER MARSHALL BRICKMAN HAVE MADE SURE THE PATCHWORK ISN'T SKIMPY THE JOKES ARE PLENTIFUL AND VERY FUNNY DIANE KEATON WAS BROUGHT IN TO FILL THE ROLE ORIGINALLY PLANNED FOR MS FARROW SHE'S CAROL LARRY'S WIFE MIDDLEAGED AND BORED NOW THAT THE CHILD SHE QUIT WORK TO RAISE HAS LEFT FOR COLLEGE IT'S FUN TO WATCH MS KEATON AND MR ALLEN TOGETHER AGAIN PLAYING A COMFORTABLE COUPLE IN A LONGSTANDING MARRIAGE IN WHICH FRIENDLINESS HAS REPLACED PASSION CAROL WEARS A BRA TO BED UNDER A NIGHTSHIRT BUTTONED UP TO THE NECK CAROL FINDS DISTRACTION FROM HER MIDLIFE MALAISE IN THE SUDDEN DEATH OF A NEXTDOOR NEIGHBOR AN ELDERLY BUT HEALTHY WOMAN CONVINCED THAT THE WOMAN'S HUSBAND MURDERED HER CAROL BECOMES OBSESSED WITH SOLVING THE MYSTERY LARRY'S NOT KEEN ON HIS WIFE'S NEW HOBBY BUT THEIR DIVORCED FRIEND TED ALAN ALDA SUPPORTS IT MAINLY BECAUSE HE HAS A CRUSH ON CAROL HE STARTS SLEUTHING WITH HER SO THEY CAN SPEND TIME TOGETHER LARRY GRUDGINGLY JOINS THE INVESTIGATION AGAINST HIS WILL IN ORDER TO PLEASE CAROL HE LOVES HER SO MUCH HE BARELY NOTICES THE FLIRTATIOUS ATTENTION HE'S GETTING FROM THE SEXY AUTHOR ANJELICA HUSTON WHOSE BOOK HE'S EDITING NOT SURPRISINGLY THIS BEING A WOODY ALLEN MOVIE THESE AMATEUR GUMSHOES DO MOST OF THEIR DETECTIVE WORK WITH THEIR MOUTHS TALKING IT UP IN FANCY RESTAURANTS BUT ALSO AT FAMILIAR NEW YORK PLACES SUCH AS LINCOLN CENTER AND GRAMERCY PARK THE USUAL ALLEN OBSESSIONS CROP UP MOVIES LOVE FIDELITY BUT MORE CASUALLY THAN USUAL MANHATTAN MURDER MYSTERY IS WOODY ALLEN LITE A NICE LITTLE ENTERTAINMENT NOT CLAUSTROPHOBIC THE SECRET GARDEN FRANCES HODGSON BURNETT'S CLASSIC CHILDREN'S STORY IS A MORBIDLY APPEALING TALE OF LOSS AND REDEMPTION FOR THOSE WHO HAVEN'T READ THE BOOK IT IS ABOUT MARY LENNOX A LITTLE BRITISH GIRL RAISED IN INDIA UNTIL THE AGE OF 10 WHEN HER PARENTS DIE IN A FIRE SHE REMEMBERS THEM COOLLY AS GLAMOROUS PEOPLE TOO BUSY FOR HER AFTER THEIR DEATHS SHE'S SHIPPED TO ENGLAND TO LIVE WITH THE WIDOWER OF HER DEAD MOTHER'S TWIN SISTER WHO DIED IN CHILDBIRTH MARY UNDERSTANDABLY IS A SOUR CHILD HER NEW HOME IN THE ENGLISH MOORS IS HAUNTED BY HER DEAD AUNT'S MEMORY HER UNCLE A HUNCHBACK SPENDS MOST OF HIS TIME AWAY FROM THIS PLACE WITH ITS SAD MEMORIES HER COUSIN A LIFELONG INVALID WHOM SHE DISCOVERS ONLY AFTER TRACING THE SCREAMS SHE HEARS AT NIGHT HAS BEEN KEPT LOCKED UP SINCE BIRTH JUST WHEN THE STORY'S GLOOMINESS BECOMES ALMOST UNBEARABLE MARY FINDS A BRIGHT SPOT HER AUNT'S SECRET GARDEN TOGETHER WITH A SWEET LOCAL BOY MARY REVITALIZES THE GARDEN CURES HER COUSIN AND BRINGS HER UNCLE BACK TO LIFE FOR THE MOVIE VERSION AGNIESZKA HOLLAND THE ACCOMPLISHED POLISH SCREENWRITER AND DIRECTOR EUROPA EUROPA HAS REMAINED FAITHFUL TO THE BOOK'S GOTHIC STRUCTURE AND STYLE THE ACTORS ARE FINE ESPECIALLY YOUNG KATE MABERLY AS MARY AND MAGGIE SMITH AS MARY'S NEMESIS THE FRANTIC HOUSEKEEPER WHO MAINTAINS THE HOUSEHOLD'S SELFWILLED INSANITY WITH A LUCID SCRIPT BY CAROLINE THOMPSON STUART CRAIG'S VIVID PRODUCTION DESIGN AND ROGER DEAKINS'S LOVELY CAMERAWORK MS HOLLAND HAS MADE AN ELEGANT AND TOUCHING FILM FOR CHILDREN AND THEIR PARENTS VIDEO TIP MS KEATON IS OFTEN THOUGHT OF AS THE INARTICULATE CUTIE WHO GETS BY ON A SMILE AND A ROLL OF THE EYES WHEN WORDS FAIL HER BUT SHE'S GIVEN SOME THOUGHTFUL SERIOUS PERFORMANCES OVER THE YEARS MOST OVERLOOKED PERHAPS IS THE MRS SOFFEL 1984 THE GILLIAN ARMSTRONG FILM BASED ON THE TRUE STORY OF A TURNOFTHECENTURY WARDEN'S WIFE WHO HELPED TWO PRISONERS ESCAPE FROM DEATH ROW BOTH MS KEATON AS THE UNSTABLE MRS SOFFEL AND MEL GIBSON AS ONE OF THE BROTHERS ARE VERY VERY GOOD 9308190062 930819 LEISURE & ARTS BOOKSHELF THE SOURPUSS POET BY RICHARD LOCKE THOUGH HE TURNED DOWN THE JOB WHEN IT WAS OFFERED TO HIM IN 1984 A YEAR BEFORE HE DIED AT 63 PHILIP LARKIN WAS THE UNOFFICIAL POET LAUREATE OF ENGLAND IN ITS DECLINE THE BEST ENGLISH POET SINCE AUDEN A NATIONAL MONUMENT PART COMFORTER PART CASSANDRA AS ANDREW MOTION PUTS IT IN HIS EXCELLENT NEW BIOGRAPHY OF THIS BELOVED SOURPUSS PHILIP LARKIN A WRITER'S LIFE FARRAR STRAUS & GIROUX 570 PAGES 35 HIMSELF A PROLIFIC AUTHOR OF POETRY FICTION CRITICISM AND BIOGRAPHY AND A FRIEND COLLEAGUE AND LITERARY EXECUTOR OF LARKIN'S MR MOTION HAS GIVEN US A WORK OF INTENSE LITERARY SOCIAL AND PSYCHOLOGICAL INTEREST MR MOTION IS A CLEAR FLUENT WRITER EVOCATIVE ACUTE SYMPATHETIC BUT ABSOLUTELY UNBLINKING ABOUT THE NOTORIOUS WEAKNESSES AND CRUELTIES AS WELL AS THE IMMENSE WIT AND HARD WORK OF HIS SUBJECT LARKIN WAS NOT MERELY THE WC FIELDS OR GLOOMY DONKEY EEYORE REVIEWERS DESCRIBED HE DISLIKED WOMEN CHILDREN BLACKS TRADE UNIONS FOREIGNERS SOCIALISTS MODERNISTS STUDENTS AND ACADEMICS MR MOTION IS FRANK LARKIN HAD NO DEVELOPED POLITICAL OPINIONS BUT STRONG REACTIONARY PREJUDICES WELL ILLUSTRATED BY HIS DITTY PRISON FOR STRIKERS/BRING BACK THE CAT/KICK OUT THE NIGGERS/WHAT ABOUT THAT MOREOVER LARKIN'S LEGENDARY PERSONA AS A HERMIT LIVING A GLUM PROVINCIAL EXISTENCE AS THE IN FACT FABULOUSLY ADROIT AND SUCCESSFUL LIBRARIAN AT THE UNIVERSITY OF HULL ON THE NORTHEAST COAST WAS VERY MUCH A MATTER OF SELFISH CHOICE AND LITERARY PUBLIC RELATIONS HIS FRIENDS INCLUDED KINGSLEY AMIS JOHN WAIN BARBARA PYM JOHN BETJEMAN AND ROBERT CONQUEST HE WEASELED AND JUGGLED WOMEN FOR MUCH OF HIS LIFE WHILE KEEPING A BOXFUL OF PORNOGRAPHY AT HAND SEX IS TOO GOOD TO SHARE WITH ANYONE ELSE HE NOTED BUT HIS OFTENMOVING POEMS DID CHANGE THE SELFUNERSTANDING AND IMAGINATIVE LIFE OF HIS COUNTRY HE WAS READ BY LARGE NUMBERS OF PEOPLE FROM ALL WALKS OF LIFE AND MR MOTION ARGUES OR RATHER ASSERTS HE IS ONE OF THE GREAT POETS OF THE CENTURY IN ENGLAND I'D HAVE TO EMPHASIZE LARKIN'S REPUTATION AROSE FROM THREE SMALL COLLECTIONS SPACED FAR APART THE LESS DECEIVED IN 1955 THE WHITSUN WEDDINGS IN 1964 AND HIGH WINDOWS IN 1974 SOME 80 POEMS THOUGH A POSTHUMOUS COLLECTION FOUND AN ADDITIONAL 160 WORTH REPRINTING HIS TWO EARLY NOVELS JILL 1946 AND A GIRL IN WINTER 1947 AND HIS TWO COLLECTIONS OF ARTICLES AND REVIEWS ALL WHAT JAZZ 1970 AND REQUIRED WRITING 1983 NEVER APPROACHED THE PROFOUND CENTRALITY THE COMIC RAGE PLANGENT SORROW AND TOUGH LYRICISM OF HIS POEMS ON SEX LOVE DEATH TRADITION THE LANDSCAPE AND FAMILY LIFE IN MIDDLE ENGLAND HIS OWN CHILDHOOD IN COVENTRY WAS DOMINATED HE SAID BY FEAR AND BOREDOM FOR MR MOTION LARKIN WAS BOTH DEPENDENT UPON AND DRAGGED DOWN BY HIS WHINING MOTHER AND AUTOCRATIC FATHER THE CITY TREASURER WHO PRIZED BOOKS AND BRAINS ABOVE ALL HAD NOTHING BUT CONTEMPT FOR WOMEN AND SO ADMIRED HITLER THAT HE ATTENDED SEVERAL NUREMBERG RALLIES AND KEPT A STATUE OF HIS HERO ON THE MANTELPIECE LARKIN DESCRIBED HIS MOTHER AS A SNIVELLING PEST HIS PARENTS' MARRIAGE HE WROTE LEFT ME WITH TWO CONVICTIONS THAT HUMAN BEINGS SHOULD NOT LIVE TOGETHER AND THAT CHILDREN SHOULD BE TAKEN FROM THEIR PARENTS AT AN EARLY AGE LARKIN STAMMERED FROM THE AGE OF FOUR WORE THICK SPECTACLES WAS UNGAINLY WITH A LONG BACK AND COMPARATIVELY SHORT LEGS AND GREW INTO A TALL AWKWARD PUBLICLY SHY AND PRIVATELY FUNNY SCABROUS HARDDRINKING OXFORD UNIVERSITY MAN WHO DESPISED THE SET ENGLISHLIT CURRICULUM BUT GOT A FIRST IN 1943 HE'D BEEN EXCUSED FROM THE DRAFT FOR HIS EYESIGHT UNABLE TO SECURE A POSITION IN THE CIVIL SERVICE OR FOREIGN OFFICE HE TOOK A JOB AS A SMALLTOWN PUBLIC LIBRARIAN AND WROTE PILES OF POEMS STORIES ROMANCES AND HIS TWO NOVELS HE SOON MET HIS FIRST LOVE A 16YEAROLD SCHOOLGIRL BUT HE WAS ALWAYS TO FEAR THAT INTIMACY THIS LETTING IN OF ANOTHER PERSON SPELLS DEATH TO PERCEPTION AND CREATIVITY HIS SOLITUDE WAS A SNUG DRESSING GOWN HE NEEDED TO WRITE IN OR AS HE SAID DEPRIVATION IS FOR ME WHAT DAFFODILS WERE FOR WORDSWORTH HIS DUPLICITY TOWARD THE FEW WOMEN HE TOOK TO BED WAS UNSWERVING HE TENDED TO PLAY OFF A ROMANTIC INNOCENT AGAINST A REALISTIC FUNNY WORLDLY SEXPOT THE WOMAN WHO USUALLY FILLED THE LATTER ROLE WAS IN FACT ALSO INTELLECTUALLY AND MORALLY IMPRESSIVE AN ACADEMIC WHO WAS FAITHFUL TO HIM FOR 35 YEARS WHILE HE DIDDLED AND SCRIBBLED BUT AS MR MOTION PUTS IT IT WAS LARKIN'S MOTHER WHO WAS HIS MUSE NOT A BEAUTY TO BE WON BUT A MISERY WHICH HAD TO BE BOTH RESISTED AND ACCEPTED MOANING AND WRINGING HER HANDS SHE PRECEDED HER SON THROUGH HIS LIFE LOADING HIM DOWN WITH EXAMPLES OF THE CONSTRAINTS HE DREADED BUT ALSO EMBRACED IT MADE HIM LOOK UPON THE ORDINARY AS SOMETHING POTENTIALLY EXTRAORDINARY HER CONVICTION THAT THE LARKINS WERE SUPERIOR' AND HER INSISTENCE THAT THEIR VISION OF THE WORLD WAS ADEQUATE LED HIM TO HIS VERSION OF THE EGOTISTICAL SUBLIME HE WAS 55 WHEN HIS MOTHER DIED AT 91 AND HE VIRTUALLY STOPPED WRITING POEMS FOR THE REMAINDER OF HIS LIFE EIGHT YEARS AGAIN LIKE WORDSWORTH FAMOUSLY CONSERVATIVE HE ENDED IN DROUGHT BUT BY THEIR FRUITS YE SHALL KNOW THEM THE POETRY FAR TRANSCENDS THE POET AND MR MOTION HAS GENEROUSLY ENLARGED OUR UNDERSTANDING OF BOTH IN THIS IMPRESSIVE WRITER'S LIFE 9308190061 930819 LETTERS TO THE EDITOR WHAT DR ELDERS DID FOR ARKANSAS REGARDING BLANT HURT'S JULY 22 EDITORIAL PAGE PIECE DR ELDERS'S RECORD IN ARKANSAS I WISH TO CLARIFY THE SUCCESSES OF DR JOYCELYN ELDERS WITH REGARD TO COMPREHENSIVE STUDENT HEALTH CENTERS WHEN OUTRAGE IS EXPRESSED AT HER PLAN TO OFFER CONTRACEPTIVES TO TEENS I WOULD REMIND HER CRITICS THAT SHE SUPPORTS THE RIGHT OF THE LOCAL SCHOOL BOARD TO APPROVE OF STUDENT HEALTH SERVICE CENTERS AND REQUIRES WRITTEN PARENTAL PERMISSION FOR THE DISTRIBUTION OF CONTRACEPTIVES THERE ARE 24 COMPREHENSIVE STUDENT HEALTH CENTERS IN ARKANSAS WITHIN 11 COUNTIES AND 21 OTHER SCHOOLS AWAIT FUNDING TO INSTALL CENTERS ALREADY APPROVED BY THEIR LOCAL SCHOOL BOARD SCIENTIFIC DATA SHOW THAT COMPREHENSIVE STUDENT HEALTH CENTERS WHICH OFFER COUNSELING AND SUPPORT SERVICES WITH THE DISTRIBUTION OF ANY CONTRACEPTIVES ARE HELPING TO CONTROL TEENAGE PREGNANCY IN ARKANSAS THE HEALTH CENTERS ALSO ADDRESS GOOD NUTRITION SELFESTEEM AND THE PREVENTION OF ALCOHOL AND TOBACCO ABUSE MOTOR VEHICLE ACCIDENTS DATE RAPE AND ASSAULT FROM 1990 TO 1991 THE MOST RECENT YEARS FOR WHICH STATISTICS ARE AVAILABLE LIVE BIRTHS TO 15TO19YEAROLDS IN ARKANSAS DECREASED FROM 6999 TO 6873 WITH A CORRESPONDENT DECREASE IN THE FERTILITY RATE ALTHOUGH IT IS TRUE THAT TEENAGE BIRTHS IN ARKANSAS INCREASED FROM 1987 TO 1990 THE RATE WAS LESS THAN THAT FOR THE ENTIRE NATION 1698 STATEWIDE 12 IN THOSE 11 COUNTIES THAT CONTAIN CENTERS AND 1838 IN THE US AT THE SAME TIME THE NUMBER OF ABORTIONS TO 15TO19YEAROLDS IN ARKANSAS DROPPED 2028 IN 1987 TO 1736 IN 1991 AS DID THE RATIO OF ABORTIONS TO LIVE BIRTHS WHICH IS WELL BELOW THE NATIONAL AVERAGE FOR EXAMPLE AFTER THE IMPLEMENTATION OF CENTERS WITH CONTRACEPTIVE SERVICES IN ONE SCHOOL THE NUMBER OF PREGNANCIES PLUMMETED FROM 10 IN THE 198586 SCHOOL YEAR COMPRISING 30 OF THE CLASS TO TWO THE FOLLOWING YEAR AND NONE IN 198990 THAT IS A CLEAR RECORD OF SUCCESS DR ELDERS HAS ADDRESSED A DIVERSE ARRAY OF PUBLIC HEALTH ISSUES SHE IMPROVED HEALTH CARE FOR THE ELDERLY IN CREATING AN ARKANSAS DEPARTMENT OF HEALTH HOME TEAM WHICH OFFERS SERVICES 24 HOURS A DAY 365 DAYS A YEAR THIS TEAM OF NURSES THERAPISTS AND AIDES MAKE IT POSSIBLE FOR THOUSANDS OF PEOPLE EACH YEAR TO RECEIVE TREATMENT AT HOME WITH THEIR FAMILIES AND AVOID HOSPITALIZATION IN 1992 MORE THAN 17000 PATIENTS WHO WERE RECOVERING OR WHO WERE CHRONICALLY ILL FRAIL OR TERMINALLY ILL RECEIVED HEALTH CARE THROUGH HOME TEAM THE COST PER RECOVERING PATIENT WAS 28 LESS THAN THE NATIONAL AVERAGE COST ACCORDING TO MEDICARE DATA DR ELDERS HAS AN OUTSTANDING RECORD OF ACCOMPLISHMENTS IN ARKANSAS AN INCREASE IN THE CHILDREN WHO RECEIVED SCREENING AND TREATMENT SERVICES TO 45252 IN 1992 FROM 4186 IN 1988 A 73 INCREASE IN THE NUMBER OF WOMEN AND CHILDREN RECEIVING NUTRITION SERVICES A JUMP IN IMMUNIZATION RATES FOR TWOYEAROLDS TO 60 IN 1992 FROM 34 IN 1989 A RISE IN THE NUMBER OF WOMEN RECEIVING PRENATAL CARE IN THE FIRST TRIMESTER 665 TO 714 FROM 1987 TO 1991 AND INITIATIVES TO RECRUIT 17 PHYSICIANS TO UNDERSERVED RURAL AREAS IN 1992 ALONE THIS IS A CLEAR RECORD OF SUCCESS DR ELDERS IS THE MOST QUALIFIED PHYSICIAN EVER TO BE NOMINATED TO THIS OFFICE SHE HAS LED A HEALTH CARE TEAM IN ARKANSAS TO A MULTITUDE OF SUCCESSES SHE WILL DO THE SAME FOR THE NATION AS US SURGEON GENERAL 9308190060 930819 IPALCO BOOSTS HOSTILE PSI BID TO 173 BILLION PROPOSAL COMES FIVE DAYS BEFORE KEY PROXY VOTE AT THE INDIANA UTILITY BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IPALCO ENTERPRISES INC BOOSTED ITS HOSTILE BID FOR PSI RESOURCES INC TO 173 BILLION FROM 16 BILLION JUST TWO DAYS AFTER PSI AND CINCINNATI GAS & ELECTRIC CO SWEETENED TERMS OF THEIR MERGER PLAN TO MATCH IPALCO'S EARLIER INCREASE BY BOOSTING ITS CASHANDSTOCK TENDER OFFER TO 3050 A SHARE FROM 28 IPALCO RAISED THE ANTE AGAIN IN WHAT HAS TURNED INTO A BIDDING WAR REMINISCENT OF THE TAKEOVER FIGHTS OF THE 1980S IPALCO'S MOVE COMES FIVE DAYS BEFORE A CRUCIAL VOTE IN WHICH PSI HOLDERS WILL CHOOSE BETWEEN A SLATE OF IPALCO NOMINEES AND THE DIRECTOR NOMINEES THAT PSI MANAGEMENT IS BACKING ALTHOUGH ONLY FIVE OF 14 PSI BOARD SEATS ARE UP FOR ELECTION AT THE PLAINFIELD IND COMPANY'S ANNUAL MEETING MONDAY THE PROXY FIGHT IS SEEN AS A REFERENDUM THAT COULD DETERMINE THE OUTCOME OF THE TAKEOVER BATTLE HOSTILE FIGHTS HAVE BECOME RARITIES IN THE 1990S THE HARDPITCHED STRUGGLE FOR PSI IS ALL THE MORE EXCEPTIONAL BECAUSE THE PARTICIPANTS ARE UTILITIES IN THAT REGULATIONENCRUSTED INDUSTRY EVEN FRIENDLY MERGERS ARE DIFFICULT AND TIMECONSUMING TO EFFECT AND HOSTILE FIGHTS ARE ALMOST UNHEARD OF FOR ARBITRAGERS AND OTHER INVESTORS CALCULATING THE PSI SITUATION HAS BEEN DIFFICULT BECAUSE IPALCO'S BID IS GENERALLY THOUGHT TO FACE SIGNIFICANT DIFFICULTIES PASSING MUSTER WITH REGULATORS CONCEIVABLY IPALCO COULD WIN THE BIDDING BREAKING UP THE MERGER PLAN AND THEN EITHER BE FOILED BY REGULATORS OR BE DRAGGED INTO A LENGTHY FIGHT THAT WOULD MAKE IT DROP ITS PLANS EACH TIME THE COMPANY BOOSTS THE PRICE IT'S WILLING TO PAY FOR PSI THE REGULATORY HURDLES IT FACES PRESUMABLY GROW HIGHER PSI SAID ITS DIRECTORS WILL CONSIDER IPALCO'S LATEST BID IN DUE COURSE BUT IT REITERATED THAT THE HIGHER OFFER LIKE IPALCO'S EARLIER BIDS APPEARS BASED ON A REGULATORY PLAN THAT PSI BELIEVES IS HIGHLY UNLIKELY TO GET CLEARANCE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY PSI SHARES MOVED UP 375 CENTS ON HEAVY VOLUME TO 2575 IPALCO SLIPPED 25 CENTS TO 36 AND CG&E ROSE 25 CENTS TO 27875 IPALCO BASED IN INDIANAPOLIS THEN LAUNCHED A RIVAL 2650ASHARE OR 15 BILLION BID FOR PSI WITH THE DATE FOR PSI'S ANNUAL MEETING APPROACHING IPALCO EARLIER THIS MONTH BOOSTED ITS UNWANTED BID TO 28 A MOVE THAT SPARKED THIS WEEK'S REJIGGERING OF THE PSI/CG&E MERGER TERMS SO THAT PSI HOLDERS WOULD RECEIVE A ROUGHLY LIKE AMOUNT UNDER THE NEW PLAN IF CG&E SHARES RISE PSI HOLDERS COULD RECEIVE AS MUCH AS 3069 FOR EACH OF THEIR SHARES TELLINGLY HOWEVER THE REVISED MERGER TERMS SWEETEN THE PACKAGE FOR PSI HOLDERS ONLY IF PSI'S NOMINEES WIN ELECTION TO THE BOARD IF IPALCO'S SLATE WINS THE EARLIER LOWER EXCHANGE RATIO WILL REMAIN IN EFFECT I THINK THE CINCINNATI OFFER IS BETTER SAID NATWEST SECURITIES ANALYST EDWARD TIRELLO THE FRIENDLY COMBINATION CAN BE PUT TOGETHER MORE RAPIDLY HE THINKS AND ASSUMING A HOPEDFOR RATE INCREASE ALLOWS CG&E TO INCREASE ITS DIVIDEND IN THE AUTUMN THE RESULTING RISE IN THE PRICE OF THE OHIO COMPANY'S SHARES COULD LET INVESTORS SEE THE IPALCO OFFER MATCHED WITH A LOT LESS WORK IPALCO CALLED ITS LATEST BID THE UNQUESTIONABLY SUPERIOR OFFER AND QUESTIONED WHETHER THE PSI/CG&E MERGER WOULD BE ABLE TO GARNER THE REQUISITE TWOTHIRDS APPROVAL FROM CG&E HOLDERS CG&E REACTED TO THE BID INCREASE BY SAYING THE ADJUSTMENT IT AGREED TO EARLIER THIS WEEK WAS ITS LAST AND BEST OFFER AND THAT IT WON'T MATCH THE IPALCO INCREASE PSI HOLDERS SHOULD VOTE IN FAVOR OF THE PSI NOMINEES CG&E GRUMBLED OR THERE MAY BE NO ONE THERE WHEN THE IPALCO PLAN FAILS 9308190059 930819 BUSINESS BRIEF DUPONT CO COMPANY PLANS TO CONSTRUCT 100 MILLION PLANT IN CHINA DUPONT CO IN A MOVE THAT REFLECTS ITS STRONG COMMITMENT TO CHINA SAID IT HOPES TO BUILD A 100 MILLION CHEMICAL FACTORY IN THAT COUNTRY THE WILMINGTON DEL CONCERN SAID THAT ALONG WITH CHINESE PARTNERS IT INTENDS TO BUILD THE STATEOFTHEART BUTAZDIENEBASED ADIPONITRILE OR ADN PLANT AT AN ASYETUNDECIDED LOCATION IN CHINA CONSTRUCTION DEPENDS ON THE OUTCOME OF A FEASIBILILTY STUDY AND ON CHINESE GOVERNMENT AUTHORITIES THE COMPANY EXPECTS THE FACILITY TO BE OPERATIVE BY THE END OF THE DECADE ADN IS USED AS A BUILDING BLOCK IN MAKING A CRITICAL INGREDIENT THE NYLON FORM KNOWN AS NYLON 66 DUPONT CURRENTLY HAS TWO MANUFACTURING VENTURES IN CHINA IN SHENZEN AND SHANGHAI DUPONT ALONG WITH OTHER GLOBAL CHEMICAL CONCERNS IS MOVING TO INCREASE ITS ASIAN CHEMICAL OPERATIONS AS THAT MARKET EXPANDS 9308190058 930819 LEISURE & ARTS THEATER AMY TAN BESTSELLER PREMIERES ON CHINESE STAGE BY JOHN MCGINNIS SHANGHAI CHINA IN AMY TAN'S BESTSELLING NOVEL THE JOY LUCK CLUB THE CHINESEAMERICAN HEROINE JINGMEI GOES TO CHINA NOW LIFE HAS COPIED FICTION THE JOY LUCK CLUB ITSELF HAS TURNED UP HERE AS A PLAY BASED ON THE BOOK AND LIKE JINGMEI'S VISIT THIS JOURNEY HAS BEEN FULL OF SURPRISES AND A WARM IF STRAINED RECEPTION FOR THE STAGE NEW YORK PLAYWRIGHT SUSAN KIM HAS ARRANGED MS TAN'S VIGNETTES OF AMERICANBORN DAUGHTERS AND THEIR CHINESEBORN MOTHERS INTO A LOOSELY CONNECTED TWOACT DRAMA APPARENTLY THE FIRST PREMIERE OF AN AMERICAN PLAY IN CHINA JOY LUCK WHICH OPENED EARLIER THIS MONTH IS A JOINT VENTURE BETWEEN CONNECTICUT'S LONG WHARF THEATRE AND THE SHANGHAI PEOPLE'S ART THEATRE WITH AN ASSIST FROM THE YALECHINA ASSOCIATION ONSTAGE THE BOOK LOSES A FEW CHARACTERS AND MUCH OF ITS RICH DETAIL THE EPISODIC STORY LINE MAY DISORIENT CHINESE PLAYGOERS USED TO LINEAR OFTEN MELODRAMATIC PLAYS DESIGNED TO HOLD THE ATTENTION OF FREQUENTLY RAUCOUS AUDIENCES YET THE WOMEN'S EXPERIENCES OF AMERICA RING TRUE AND THESE ARE WHAT CHINESE AUDIENCES EAGER FOR INFORMATION ABOUT THE WORLD OF THEIR AMERICAN COUSINS WILL COME TO SEE THEY WON'T BE GETTING THE BOOK'S FULL FLAVOR THE MOTHERS' BROKEN ENGLISH EMBARRASS YOU BE MY DAUGHTER IS UNTRANSLATABLE IN MANDARIN THE MOTHERS' NATIVE TONGUE AND THE LANGUAGE OF THE PLAY INSTEAD LONG WHARF'S TONYNOMINATED DIRECTOR ARVIN BROWN HAS THEM EXPRESS THEIR DIFFICULTY WITH THEIR DAUGHTERS' AMERICANIZATION WITH FACIAL EXPRESSIONS AND GESTURES THIS PROBABLY WOULD MAKE SENSE EVEN IN AN ENGLISHLANGUAGE STAGING INDEED MR BROWN IMPROVES ON THE NOVEL WITH ANOTHER CLEVER PIECE OF STAGECRAFT HE USES COLORCOORDINATED COSTUMES TO HELP THE AUDIENCE DISTINGUISH BETWEEN THE FOUR MOTHERDAUGHTER PAIRS IN THE BOOK YOU CAN'T ALWAYS TELL EASILY WHICH PAIR MS TAN HAS IN MIND IN THE PLAY ONE PAIR IS ALWAYS IN RED ANOTHER BLUE AND SO ON BUT THEIR ACTUAL CLOTHES ARE QUITE DIFFERENT DOWDY MANDARIN OUTFITS FOR THE MOTHERS HIP GEAR FOR THE DAUGHTERS THE WOMEN TELL THEIR STORIES ON A MINIMALIST WHITE SET BUT EVEN THE APPARENT SIMPLICITY OF THIS DESIGN BY THE CHINESEAMERICAN THEATER VETERAN MING CHO LEE RAN INTO PROBLEMS TYPICAL OF THOSE THE ENTIRE PROJECT FACED MR LEE HAD PLANNED FOR MORE THAN A DOZEN WHITE DOOR FRAMES TO SLIDE SILENTLY ON HANGING TRACKS ACROSS THE STAGE CREATING ROOMS HALLWAYS AND WHOLE APARTMENTS AS THE ACTION REQUIRED YET THE LOCAL STAGE MANAGERS FAILED FOR ONE REASON OR ANOTHER TO COME UP WITH THE SIMPLE ROPEANDPULLEY ARRANGEMENT THIS EFFECT REQUIRED AND SO MR BROWN HAD TO REARRANGE MANY SCENES AND HALT THE ACTION WHILE STAGEHANDS IN WHITE SLIDE SCREECHING DOOR FRAMES SIMILARLY SPECIAL WHITE FABRIC MEANT TO BE OPAQUE OR TRANSPARENT WHEN LIT FROM OPPOSITE SIDES WAS UNAVAILABLE AND ITS FLIMSY REPLACEMENT ALSO HAS TO BE PULLED ONSTAGE MR BROWN WAS NOT UNPREPARED FOR THESE AND OTHER HEADACHES IN 1986 HE DIRECTED THE US NATIONAL THEATER OF THE DEAF IN A TOUR OF PERFORMANCES ACROSS CHINA ON THAT TRIP HE WAS AT FIRST SHOCKED HE SAYS BY CHINA'S WIDESPREAD ABUSE OF ITS DEAF PEOPLE THEN AS THE AMERICANS AND CHINESE BEGAN COMMUNICATING IN THEIR RESPECTIVE SIGN LANGUAGES MANY OF THE CHINESE FOUND THEIR VOICES SO TO SPEAK IT WAS LIKE THE BEST KIND OF COMING OUT OF THE CLOSET HE SAYS YOU WERE VERY AWARE OF THE KIND OF REPRESSION THAT EXISTED WHEN PLANS FOR JOY LUCK WERE BROACHED IN 1990 MR BROWN DID NOT LEAP AT THE CHANCE TO RETURN TO CHINA THE TIANANMEN TRAGEDY WAS FRESH IN MINDS AROUND THE WORLD HIS ABSENCE FROM LONG WHARF FOR FIVE WEEKS OF REHEARSALS WOULD ORDINARILY HAVE TO BE JUSTIFIED BY SUBSTANTIAL INCOME LANGUAGE WOULD BE AN OBSTACLE AS HE SPEAKS NO MANDARIN AND THE CAST LITTLE ENGLISH AND HE SAYS HE DIDN'T WANT TO SEEM ANTIAMERICAN THOSE CHINESE WHO WEREN'T DOCTRINAIRE IN THEIR CRITICISM OF AMERICA HE SAYS WERE REALLY ROMANTIC ABOUT THE AMERICAN DREAM HOW MUCH MONEY THERE WAS TO BE MADE HOW MUCH FREEDOM THERE WAS TO EXPRESS THOUGHTS AND SO ON I WOULD BE THE ONE TO EXPRESS CRITICAL THOUGHTS AND THEY'D LOOK AT ME LIKE I WAS CRAZY SINCE THAT TIME MR BROWN SAYS INCREASING SINOUS INTERACTION IN MANY SPHERES HAS MADE BOTH SIDES' EXPECTATIONS OF THE OTHER MORE REALISTIC 9308190056 930819 HOW TO BREAK THE FAA BOTTLENECK BY ROBERT W POOLE JR TODAY THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY FORMALLY REPORTS BACK TO THE WHITE HOUSE AND CONGRESS ONE OF ITS MOST IMPORTANT PROPOSALS IS TO SPIN OFF THE AIR TRAFFIC CONTROL SYSTEM FROM THE FEDERAL AVIATION ADMINISTRATION SETTING IT UP AS A USERFUNDED GOVERNMENT CORPORATION IN MAKING THIS PROPOSAL THE COMMISSION RECOGNIZES WHAT MORE THAN A DECADE OF STUDIES HAVE DOCUMENTED THE TECHNOLOGICALLY BACKWARD AIR TRAFFIC CONTROL SYSTEM IS ONE OF THE CHIEF CONSTRAINTS ON HEALTHY AVIATION GROWTH THE FEDERAL BUDGET PROCESS STARVES THE SYSTEM OF FUNDS CUMBERSOME FEDERAL PROCUREMENT REGULATIONS MAKE BUYING HIGHTECH EQUIPMENT SO SLOW THAT IT'S OBSOLETE BY THE TIME IT'S IN SERVICE THE SAME SATELLITE TECHNOLOGY THAT PROVED SO VALUABLE IN DESERT STORM COULD FORM THE BASIS FOR A DRAMATICALLY MORE COSTEFFECTIVE AIR TRAFFIC CONTROL SYSTEM BUT IT WOULD LIKELY TAKE DECADES FOR TODAY'S ENCUMBERED FAA TO BRING IT ABOUT DELAYS CAUSED BY AIR TRAFFIC CONTROL BOTTLENECKS COST AIRLINES AND THEIR PASSENGERS SOMEWHERE BETWEEN 300 MILLION AND 15 BILLION A YEAR DEPENDING ON WHOSE ESTIMATE IS USED AND SAFETY SUFFERS AS WELL CIVIL SERVICE RULES MAKE IT VERY DIFFICULT TO ATTRACT AND KEEP ENOUGH HIGHLY TRAINED PEOPLE IN HIGHSTRESS HIGHCOSTOFLIVING PLACES LIKE NEW YORK CHICAGO AND LOS ANGELES AND THERE'S A BUILTIN CONFLICT OF INTEREST BETWEEN THE FAA'S SAFETY REGULATORY ROLE AND ITS ROLE AS THE OPERATOR OF THE AIR TRAFFIC CONTROL SYSTEM WHILE SPINNING OFF AIR TRAFFIC CONTROL MAY SOUND LIKE A DRASTIC REMEDY IT'S HARDLY UNTRIED NEW ZEALAND DID SO IN 1987 AND THE RESULTING SUCCESS HAS INSPIRED A NUMBER OF OTHER AIR TRAFFIC CONTROL CORPORATIZATIONS SWITZERLAND SET UP SWISSCONTROL IN 1988 AND GERMANY FOLLOWED SUIT IN 1992 COMBINING MILITARY AND CIVIL AIR TRAFFIC CONTROL AND SPINNING THEM OFF AS A COMMERCIAL COMPANY SOUTH AFRICA IS DOING LIKEWISE AND A NUMBER OF OTHER COUNTRIES INCLUDING CANADA HAVE SUCH TRANSITIONS UNDER STUDY NONE OF THESE COUNTRIES HAS PRIVATIZED AIR TRAFFIC CONTROL IN EACH CASE GOVERNMENT HAS RETAINED CONTROL OF THE CORPORATION BUT IN EVERY CASE DEPENDENCE ON TAX FUNDING HAS CEASED TO BE REPLACED BY USER CHARGES EACH AIR TRAFFIC CONTROL CORPORATION IS SET UP ON COMMERCIAL PRINCIPLES WITH MANAGEMENT AND BOARD RECRUITED FROM THE PRIVATE SECTOR AND IN EACH CASE SAFETY REGULATION HAS REMAINED IN GOVERNMENT NOW AT ARMSLENGTH FROM THE AIR TRAFFIC CONTROL COMPANY IN THE US CONTEXT THIS WOULD ARGUE FOR SPINNING OFF ONLY THE FAA'S AIR TRAFFIC CONTROL OPERATIONS AND MAINTENANCE BRANCHES LEAVING WITHIN A REVISED FAA TWO MAIN FUNCTIONS SAFETY REGULATION AND AIRPORT GRANTS BOTH ARE INHERENTLY GOVERNMENTAL FUNCTIONS AND SHOULD CONTINUE TO BE PAID FOR BY AVIATION EXCISE TAXES REASON FOUNDATION CALCULATIONS INDICATE THAT FUNDING THE NEW FAA WOULD REQUIRE AN AIRLINE TICKET TAX OF ONLY 35 DOWN FROM THE CURRENT 8 A MAJOR BENEFIT TO AIRLINES AND PASSENGERS THE ONLY CHALLENGING ASPECT OF SPINNING OFF AIR TRAFFIC CONTROL IS DEVISING A POLITICALLY ACCEPTABLE USERFEE SCHEDULE UNDER TODAY'S SYSTEM GENERAL AVIATION USERS NONAIRLINE AND NONGOVERNMENTAL AIRCRAFT PAY ONLY 3 OF AVIATION USER TAXES BUT USE BETWEEN 21 AND 61 OF AIR TRAFFIC CONTROL SERVICES YET PRIVATE PILOTS ARE NUMEROUS VOCAL AND WELLORGANIZED PROTECTORS OF THEIR INTERESTS THE REASON FOUNDATION USERFEE PROPOSAL RESTS ON THREE BASIC PRINCIPLES 1 NO ONE PAYS FOR SERVICES THEY DON'T USE 2 MARGINAL CUSTOMERS PAY ONLY MARGINAL COSTS AND 3 ALL OTHER CHARGES SHOULD BE BASED ON LONGRUN ECONOMIC COSTS UNDER THIS PLAN NONCOMMERCIAL TYPICALLY SINGLEENGINE AND TWINENGINE PISTON AIRCRAFT NORMALLY WOULD PAY NO FEES SINCE THEY MOSTLY FLY OUTSIDE OF CONTROLLED AIRSPACE WHEN THEY DID LAND AT AN AIRPORT WITH A SMALL TOWER THEY WOULD PAY ABOUT 2 TO FILE A FLIGHT PLAN THEY WOULD PAY 9 TO 18 BUSINESS JETS AND TURBOPROPS WOULD PAY SEVERAL TIMES THOSE AMOUNTS A TINY ADDITION TO THEIR OPERATING COSTS AIRLINES AND MILITARY AIRCRAFT AS IN OTHER COUNTRIES WOULD PAY LARGER FEES BASED ON THEIR RELATIVE USE OF THE AIR TRAFFIC CONTROL SYSTEM IN EXCHANGE FOR THESE FEES AVIATION USERS WOULD GET AN AIR TRAFFIC CONTROL SYSTEM ABLE TO TAKE FULL ADVANTAGE OF TODAY'S AND TOMORROW'S TECHNOLOGY THE AIRLINE COMMISSION HAS MADE ITS RECOMMENDATION WHAT'S NEEDED NOW IS ACTION TO IMPLEMENT THE PROPOSAL VICE PRESIDENT GORE'S REINVENTING GOVERNMENT TASK FORCE SHOULD EMBRACE THIS PROPOSAL AS A PROTOTYPE REINVENTING THE AIR TRAFFIC CONTROL SYSTEM AS A USERFUNDED CORPORATION WOULD INCREASE THE NUMBER OF CONTROLLERS SAVE LIVES IMPROVE AIRLINE SERVICE AND HELP TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY MR POOLE IS PRESIDENT OF THE REASON FOUNDATION IN LOS ANGELES HE IS A FORMER AEROSPACE ENGINEER WHO HAS ADVISED BOTH THE US AND CALIFORNIA DEPARTMENTS OF TRANSPORTATION 9308190055 930819 BUSINESS BRIEF RB&W CORP SALE OF 2 PLANTS COMPLETED 3RDPERIOD CHARGE EXPECTED RB&W CORP MENTOR OHIO SAID IT COMPLETED THE ANNOUNCED SALE OF TWO MANUFACTURING PLANTS BUT SAID A DELAY IN THE SALE WILL CAUSE IT TO REPORT A CHARGE OF 700000 IN THE THIRD QUARTER ENDING SEPT 30 IN THE THIRD QUARTER ENDED SEPT 26 1992 RB&W EARNED 233000 OR FOUR CENTS A SHARE ON AN EXTRAORDINARY GAIN OF 41000 OR ONE CENT A SHARE REVENUE IN THE 1992 THIRD QUARTER WAS ABOUT 449 MILLION RB&W A MAKER OF FASTENERS INCLUDING NUTS BOLTS AND SCREWS SAID THE PURCHASER OF THE PLANTS IS A UNIT OF PRIVATELY HELD RELIANT INDUSTRIES INC 9308190054 930819 BUSINESS BRIEF HAROLD'S STORES INC SPECIALTYSTORE CHAIN SAYS PART OF LAWSUIT IS SETTLED HAROLD'S STORES INC SAID THAT PART OF A LAWSUIT IT FILED AGAINST DILLARD DEPARTMENT STORES INC WAS SETTLED AFTER DILLARD AGREED TO REMOVE ALLEGEDLY UNAUTHORIZED COPIES OF HAROLD'S GARMENTS FROM ITS STORES THE NORMAN OKLA SPECIALTYSTORE CHAIN SAID DILLARD ALSO AGREED TO CANCEL ORDERS FOR GOODS THAT WERE SCHEDULED FOR FALL DELIVERY AND WOULDN'T USE HAROLD'S GARMENTS AS SAMPLES FOR ITS MERCHANDISE HAROLD'S FILED SUIT AGAINST THE LITTLE ROCK ARK DEPARTMENTSTORE CHAIN IN AN OKLAHOMA CITY FEDERAL COURT LAST MONTH SEEKING AN INJUNCTION AND UNSPECIFIED DAMAGES FOR ALLEGED COPYRIGHT INFRINGEMENT THE AGREEMENT RESOLVING THE INJUNCTION PORTION OF THE LAWSUIT WAS ACCEPTED BY JUDGE DAVID L RUSSELL AT A SCHEDULED HEARING ON HAROLD'S REQUEST FOR A PRELIMINARY INJUNCTION A TRIAL ON THE DAMAGES PORTION IS SCHEDULED FOR JAN 10 A DILLARD OFFICIAL DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9308190053 930819 BUSINESS BRIEF BROWN & SHARPE MANUFACTURING CO FINMECCANICA UNIT ASSETS TO BE ACQUIRED FOR STOCK BROWN & SHARPE MANUFACTURING CO NORTH KINGSTOWN RI SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE ASSETS OF A FINMECCANICA SPA UNIT FOR 25 MILLION NEW BROWN & SHARPE SHARES AT THE CURRENT SHARE PRICE THE TRANSACTION IS VALUED AT ABOUT 20 MILLION IN ADDITION BROWN & SHARPE WOULD ASSUME ABOUT 15 MILLION OF THE FINMECCANICA UNIT'S DEBT ALSO FINMECCANICA WOULD HAVE A CONTINGENT NONASSIGNABLE RIGHT TO OBTAIN AN ADDITIONAL 950000 SHARES BASED ON THE MARKET PRICE OF BROWN & SHARPE CLASS A SHARES ACHIEVING A CERTAIN TARGET DURING THE FIVE YEARS FOLLOWING THE CLOSE OF THE TRANSACTION THE FINMECCANICA UNIT DEA GROUP TURIN ITALY MAKES AND SELLS COMPUTERCONTROLLED METROLOGY OR MEASURING DEVICES IT HAD 1992 SALES OF 90 MILLION ACCORDING TO BROWN & SHARPE WHICH REPORTED TOTAL REVENUE OF 160 MILLION FOR THE YEAR ENDED DEC 26 1992 BROWN & SHARPE WHICH MAKES INDUSTRIAL AND ENGINEERING MEASURING DEVICES DIDN'T SAY WHEN IT EXPECTED TO COMPLETE THE TRANSACTION 9308190052 930819 BUSINESS BRIEF FIELDCREST CANNON INC COMPANY MAY SELL PREFERRED TO HELP FINANCE PURCHASE FIELDCREST CANNON INC SAID IT IS CONSIDERING SELLING PREFERRED STOCK TO HELP FINANCE ITS 1376 MILLION PURCHASE OF AMOSKEAG CO ITS LARGEST SHAREHOLDER LAST WEEK FIELDCREST A TOWEL AND BEDDING COMPANY BASED IN EDEN NC SIGNED A DEFINITIVE AGREEMENT TO BUY AMOSKEAG AMOSKEAG BASED IN BOSTON HOLDS ABOUT 30 OF FIELDCREST'S CAPITAL STOCK AND ABOUT 81 OF ITS VOTING STOCK FIELDCREST SAID IT HASN'T YET DETERMINED THE TERMS OF THE PREFERRED STOCK BUT SAID IT EXPECTS TO GENERATE PROCEEDS OF AT LEAST 70 MILLION FROM SUCH A SALE SEPARATELY A FIELDCREST SHAREHOLDER SUED THE COMPANY SEEKING TO BLOCK THE AMOSKEAG ACQUISITION THE SUIT FILED BY HYMAN KAUFMAN IN DELAWARE CHANCERY COURT ALLEGES THAT THE BUYOUT SIMPLY ENTRENCHES FIELDCREST MANAGEMENT AT THE EXPENSE OF OTHER SHAREHOLDERS A FIELDCREST SPOKESMAN SAID WE DON'T BELIEVE IT'S ENTRENCHMENT MANAGEMENT INTENDS TO RUN THE COMPANY FOR THE LONGTERM BENEFIT OF SHAREHOLDERS HE SAID 9308190049 930819 BUSINESS BRIEF BOWATER INC PAPER FIRM TO TAKE CHARGE OF 10 MILLION IN 3RD PERIOD BOWATER INC GREENVILLE SC SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 10 MILLION IN THE THIRD QUARTER TO COVER THE COST OF CLOSING SOME MAINE PAPER MILLS AND CUTTING 200 JOBS IN THE YEARAGO QUARTER THE PAPER COMPANY HAD A NET LOSS OF 179 MILLION OR 51 CENTS A SHARE ON SALES OF 3662 MILLION THE CUTS WILL BE MADE AT ITS GREAT NORTHERN PAPER INC UNIT IN MILLINOCKET MAINE BOWATER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY P GAMMIE SAID MARKET CONDITIONS PROMPTED THE CUTBACKS AS PART OF ITS COSTCUTTING THE COMPANY IS SELLING SOME TIMBERLANDS AND REVIEWING OTHER OPERATIONS IN FEBRUARY THE COMPANY CUT ITS DIVIDEND BY 50 9308190048 930819 REVIEW & OUTLOOK EDITORIAL PETTY RETROACTIVITY YES IT'S TRUE THAT OTHER ADMINISTRATIONS HAVE RAISED TAXES RETROACTIVELY BUT OTHER ADMINISTRATIONS WEREN'T THE CLINTON ADMINISTRATION THIS ISSUE HAS BECOME A LIGHTNING ROD FOR AMERICA'S INCREASINGLY JAUNDICED PERCEPTIONS OF THE ADMINISTRATION THAT IT HAS NOW WHETHER IT'S WHACKING PHARMACEUTICAL COMPANIES OR THE WEALTHY THERE SEEMS TO BE AN INSTINCT HERE FOR DRIVING OFF THE ROAD TO HIT PEOPLE THIS ADMINISTRATION DOESN'T LIKE WORSE THAT THE PUBLIC WILL SOMEHOW APPLAUD OR ENJOY THESE HITS YOU'D THINK SOMETHING IMPORTANT REQUIRED THIS BEHAVIOR BUT TAX REVENUE CERTAINLY ISN'T IT AFTER A BIT OF PRODDING THE TREASURY FOLKS TELL US THAT RETROACTIVITY WILL BRING IN A MEAGER 89 BILLION BECAUSE TAXPAYERS HAVE THREE YEARS TO PAY WE'RE TALKING LESS THAN 3 BILLION A YEAR IN A 15 TRILLION FEDERAL BUREAUCRACY IS THIS CHUMP CHANGE REALLY WORTH THROWING THE INSULT OF RETROACTIVITY INTO THE FACE OF HARDWORKING SUCCESSFUL TAXPAYERS IT HAS THE FEEL OF A DIRTY TRICK AS IF THE GOVERNMENT DOESN'T PLACE ANY GREAT VALUE ON THE GOODWILL OF ALL ITS CITIZENS IF LLOYD BENTSEN AL GORE AND OTHER CLINTON SPIN DOCTORS SEEM BEFUDDLED THESE DAYS IT MAY BE BECAUSE THEIR DUMPONTHERICH STRATEGEM HASN'T MANAGED TO DOUSE THE FIRES OF DISAFFECTION BREAKING OUT AROUND THE LAND ON TV THE OTHER DAY MR BENTSEN POOHPOOHED THE CAMPAIGN TO REPEAL RETROACTIVITY IMPLYING THAT SOPHISTICATED TAXPAYERS WOULD HAVE SEEN THE TAX HIKES COMING AND TAKEN STEPS TO AVOID THEM THIS SORT OF CANDOR FROM THE TREASURY SECRETARY COULD PROVE CORROSIVE OF CLINTONOMICS MR BENTSEN WAS ONCE SOMETHING OF A SUPPLYSIDER AND OBVIOUSLY STILL UNDERSTANDS THAT PUNITIVE MARGINAL RATES DISCOURAGE PEOPLE FROM EARNING AND REPORTING INCOME AND MAY END UP ACTUALLY SHRINKING THE GOVERNMENT'S TAX TAKE MR CLINTON HAS BEEN SEMAPHORING A DIFFERENT MESSAGE TO THE LESS SOPHISTICATED TAXPAYER SUBLIMINALLY THESE FOLKS ARE SUPPOSED TO ABSORB THE FANTASY THAT BY MAKING THE RICH PAY THEIR FAIR SHARE MR CLINTON WILL DREDGE UP DOLLARS FOR FIXING THE DEFICIT AND LOADING UP THE PORK BARREL WITH NEW MIDDLECLASS ENTITLEMENTS MR CLINTON'S STILLPOOR POLL NUMBERS SHOW THAT VOTERS DON'T BUY THIS AND NEVER DID PEOPLE KNOW WHAT THEY WANT THEY WANT SPENDING CUTS BUT DON'T TAKE OUR WORD FOR IT ASK DIANNE FEINSTEIN SENATOR FEINSTEIN WILL SOON ENTER A BILL TO REPEAL RETROACTIVITY AND PAY FOR IT BY CHOPPING FEDERAL PROGRAMS SHE JUST GOT ELECTED BUT AS A FRESHMAN DEMOCRAT FROM CALIFORNIA VOTED FOR THE PRESIDENT'S BUDGET NOW SHE'S TRYING TO MAKE AMENDS WITH HER ANGRY CONSTITUENTS WE SUSPECT OTHER DEMOCRATS IN CONGRESS HAVE THE SAME PROBLEM NOW THAT SUGGESTS THE POSSIBILITY OF AN IDEA THAT TRULY WOULD HAVE BIPARTISAN ENDTHEGRIDLOCK SUPPORT REPEAL RETROACTIVITY WITH ITS PIDDLING REVENUES AND REPLACE IT WITH SPENDING CUTS SUPPORT FOR THE IDEA IS BEGINNING TO BUILD GOPERS LIKE SENATOR PAUL COVERDELL AND REPRESENTATIVE ED ROYCE ARE ONBOARD MR COVERDELL HAS FLOATED A CONSTITUTIONAL AMENDMENT ARGUING THAT IT'S UNPRECEDENTED FOR A WHITE HOUSE AND CONGRESS TO GO BACK AND PILE NEW TAXES ON INCOME THAT WAS EARNED BEFORE ANYBODY IN THE LEGISLATURE OR EXECUTIVE EVEN PUT HAND TO BIBLE IN THE OATHTAKING CEREMONY MR CLINTON WILL NO DOUBT MOBILIZE HIS LAWYERS TO ARGUE AND PROBABLY WIN AGAINST THOSE WHO PLAN TO SUE ON GROUNDS THAT HIS RETRO TAX HIKES ARE ALREADY UNCONSTITUTIONAL BUT WHY BOTHER PUTTING HIMSELF IN THE PATH OF THIS SQUALL WHEN HE COULD BE SCORING POINTS FOR TAKING ON THE BELTWAY SPENDAHOLICS MR CLINTON HIMSELF COULD GET OUT FRONT TO LEAD THE REPEALFORSPENDING CUTS CAMPAIGN WHERE TO START MAY WE SUGGEST SLASHING HONEY SUBSIDIES OR CUTTING 100000 FEDERAL WORKERS OR BRINGING ON A LINEITEM VETO TO CUT PORK BARREL PROJECTS WE DIDN'T INVENT THESE SPENDING CUTS THEY COME FROM PUTTING PEOPLE FIRST THE PRESIDENT'S CAMPAIGN DOCUMENT SOMEHOW THAT FELL OFF THE BUS AFTER THE FIRST TUESDAY IN NOVEMBER RIGHT ABOUT NOW FOLKS WANT SOME SIGN THAT MR CLINTON IS REALLY ON THE SAME FREQUENCY WITH THEM ANOTHER ADMINISTRATION MIGHT HAVE STORED UP ENOUGH CREDIBILITY TO SLIDE BY WITH RETROACTIVITY THIS ONE COULD GET SOME CREDIBILITY BACK BY REPEALING RETROACTIVITY AND SUBSTITUTING NEW DEMOCRAT SPENDING CUTS 9308190047 930819 REVIEW & OUTLOOK EDITORIAL BAN ALL THE TRACTORS CHALK UP ANOTHER PYRRHIC VICTORY FOR GOVERNMENT CONTROLS THE EUROPEAN COMMUNITY AGRICULTURAL COMMISSION RECENTLY RECOMMENDED THE PROHIBITION OF THE MILK PRODUCTION STIMULANT BOVINE SOMATROPIN BST FOR THE NEXT SEVEN YEARS IT CITED FEARS OF RUNNING SMALL MILK PRODUCERS OUT OF BUSINESS AND OF RAISING CONSUMER CONCERNS THE MOVE FOLLOWED A SIMILAR RECOMMENDATION A 90DAY MORATORIUM FOLLOWING BST'S APPROVAL THAT EMERGED FROM THE DEAL STRUCK OVER PRESIDENT CLINTON'S BUDGET A FOOD AND DRUG ADMINISTRATION REPORT ON BST SAFETY IS DUE OUT LATER THIS YEAR BUT WHY WAIT FOR THAT WHEN THE BUSINESS AT HAND IS STOPPING THE FUTURE THE FDA IS EXPECTED TO APPROVE BST A GROWTH HORMONE THAT OCCURS NATURALLY IN COWS COWS GIVEN THE HORMONE PRODUCE 6 TO 20 MORE MILK THE EXTRA BST IS NOT DISCERNIBLE IN THEIR MILK SCIENTISTS HAVE TESTIFIED THAT OVER DECADES OF TESTING NO HARM TO HUMANS HAS BEEN DETECTED AND AN FDA ADVISORY PANEL HAS AGREED YET THIS IS A THREAT TO THE LIKES OF SENATOR RUSS FEINGOLD OF WISCONSIN AND THE TIMID BUREAUCRATS OF THE EC THE FEINGOLD MORATORIUM ON BST IS ONE OF THE DEALS THAT WAS DONE TO ENSURE DEMOCRATIC SUPPORT FOR THE HOLDYOURNOSE CLINTON BUDGET BST FOR YEARS HAS BEEN ONE OF THE BOGEYMEN OF THE ANTIBIOTECHNOLOGY MOVEMENT IN THE US BUT IT LOOKED AS IF SCIENCE HAD WON THE ARGUMENT UNTIL THE CLINTON WHITE HOUSE HAD TO HOCK THE RANCH TO GET ITS BUDGET THE EUROPEANS MEANWHILE OFFER THE LUDDITE LOGIC OF THIS MOVEMENT THE EC ARGUES THAT EUROPE ALREADY PRODUCES MORE MILK THAN IT CAN USE AND TO TRY TO CONTROL PRODUCTION THE EC WORKING THROUGH NATIONAL GOVERNMENTS OPERATES A QUOTA SYSTEM THE EFFECT IS TO KEEP PRICES OF DAIRY PRODUCTS JACKED UP FOR THE BENEFIT OF DAIRY FARMERS POLITICIANS ARGUE THAT THE QUOTAS PROTECT THE SMALL FARMER BUT NO SERIOUS ECONOMIST REALLY BELIEVES THAT ANYMORE BIG FARMERS ARE THE BIG WINNERS IT DOESN'T SEEM TO HAVE OCCURRED TO THE OPPONENTS THAT MORE MILK PER COW WOULD MEAN FARMERS COULD USE FEWER COWS TO PRODUCE THE SAME AMOUNT OF MILK AND LESS OZONE DEPLETION WE DARE SAY AS LONG AS THE QUOTAS STAY IN PLACE EUROPE'S FARMERS WON'T BE ABLE TO SELL MORE MILK THAN THEY DO NOW OTHER THAN BY CHEATING THE QUOTAS WHICH IS COMMON THERE IS ANOTHER POINT POLITICIANS HERE AND IN EUROPE PAY MUCH LIP SERVICE TO THE PROBLEM OF THIRD WORLD HUNGER BST COULD EXPAND MILK PRODUCTION IN AFRICA AND ELSEWHERE BUT UNTIL MANUFACTURERS CAN ESTABLISH A FIRST WORLD MARKET BASE TO SPREAD THEIR COSTS AND SQUELCH THE SAFETY ISSUE THIRD WORLD USE WILL BE LIMITED THE HORMONE IS IN USE IN SEVERAL COUNTRIES HOWEVER RUSSIA LAST YEAR ACCEPTED A BST DONATION FROM MONSANTO KEEPING BST OFF THE MARKET NOT ONLY SENDS A FALSE MESSAGE ABOUT ITS SAFETY BUT SENDS A LARGER DARK SIGNAL FOR SCIENTIFIC ADVANCEMENT ON A BROAD SCALE COMPANIES WILL SHY AWAY FROM FUNDING RESEARCH FOR PRODUCTS THAT MAY BE REJECTED ON SUCH ARBITRARY AND ILLOGICAL GROUNDS AGRICULTURAL TECHNOLOGY FROM THE MCCORMICK REAPER TO TODAY'S HUGE JOHN DEERES WITH GANG PLOWS HAS FREED UP WORKERS FOR INDUSTRIALIZATION MAKING EVERYONE RICHER BETTER CLOTHED AND BETTER FED HAD SENATOR FEINGOLD'S WEIRD ECONOMIC THEORY GUIDED POLICY 60 YEARS AGO ITS LOGIC WOULD HAVE REQUIRED A BAN ON TRACTORS 9308190046 930819 WORLD MARKETS LONDON STOCKS JUMP TO A RECORD AMID SURGE IN EUROPEAN MARKETS TOKYO PRICES EDGE LOWER A WALL STREET JOURNAL NEWS ROUNDUP MARKETS ACROSS EUROPE SURGED YESTERDAY WITH LONDON STOCKS LEAPING 16 TO A RECORD ON BULLISH INFLATION DATA AND A REINVIGORATED DRUG SECTOR WHILE PRICES IN FRANKFURT RALLIED 13 TOKYO STOCKS EDGED LOWER IN QUIET TRADING AHEAD OF A MAJOR ECONOMIC POLICY MEETING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT UP 060 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND LOWER ASIA/PACIFIC MARKETS ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6228 UP 226 OR 38 WITH MEDTRONIC OF THE US POSTING A 58 GAIN IN ITS LOCAL CURRENCY STEEL STOCKS TRAILED AT 11912 DOWN 213 OR 18 WITH BETHLEHEM STEEL OF THE US SLIDING 61 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ROSE 486 POINTS TO 30736 CLOSE TO ITS HIGH FOR THE DAY THE FT 30 INDEX RAN UP 399 TO 24061 VOLUME WAS 8871 MILLION SHARES COMPARED WITH 6385 MILLION THE PREVIOUS DAY LONDON INVESTORS JUMPED ON WALL STREET'S RECORD AS THE TWO MARKETS SEEM TO BE FEEDING OFF EACH OTHER THE GAINS WERE FUELED BY THE BRITISH GOVERNMENT'S JULY INFLATION DATA WHICH SHOWED THE RETAIL PRICE INDEX DOWN 02 FROM JUNE AS EXPECTED THE NEWS REINFORCED THE PERCEPTION THAT INFLATION ISN'T STRONG ENOUGH TO KEEP THE GOVERNMENT FROM EASING MONETARY POLICY TO STIMULATE THE ECONOMY SHORTLY AFTER MIDDAY A BIG FUTURES BUYER SAID TO BE THE SAME ONE WHO SHOOK UP THE MARKET ON TUESDAY PLUNGED IN AGAIN GIVING THE CASH MARKET ANOTHER EXCUSE TO RALLY MEANWHILE PHARMACEUTICAL ISSUES PICKED UP AFTER PRESIDENT CLINTON LEFT OUT ANY MENTION OF DRUG PRICE CONTROLS IN OUTLINING HIS HEALTHCARE PROGRAM TO US GOVERNORS EARLIER THIS WEEK IN FRANKFURT THE DAX 30STOCK INDEX WHICH DROPPED 202 POINTS TUESDAY ROSE 2555 POINTS TO 193572 THE INDEX HAD FALLEN AS LOW AS 191956 SHORTLY AFTER THE OPENING BUT BEGAN RISING AFTER GETTING SIGNALS FROM YESTERDAY MORNING'S SECURITIES REPURCHASE AGREEMENTS ALLOCATION THAT GERMANY'S CENTRAL BANK THE BUNDESBANK WILL CONTINUE EASING KEY INTEREST RATES SOON THE SHARP RISE IN THE DAX SURPRISED ANALYSTS IN THE ABSENCE OF NEWS CONCERNING THE BIGGEST GAINERS THE GAINS WERE ALSO ATTRIBUTED TO BUYING BY FOREIGN INVESTORS AND THE EXPIRATION TOMORROW OF FUTURES AND OPTIONS CONTRACTS MOST OTHER EUROPEAN MARKETS POSTED STRONG GAINS IN PARIS STOCKS JUMPED 11 IN HEAVY VOLUME TO FINISH JUST A FEW POINTS SHY OF A RECORD AFTER THREE DAYS OF DECLINES FRENCH INVESTORS EXPECT NEW INTEREST RATE CUTS FROM THE BUNDESBANK WHICH COULD WELL MEAN NEW CUTS FOR FRANCE IN AMSTERDAM EQUITIES RESUMED THEIR MONTHLONG RALLY AS INVESTORS PILED INTO SHARES OF COMPANIES IGNORED IN RECENT WEEKS BUYING WAS BUOYED BY GAINS ELSEWHERE IN EUROPE AND ON WALL STREET IN MILAN PRICES FINISHED SLIGHTLY HIGHER AFTER A BOUT OF PROFITTAKING ERASED STRONG GAINS IN MADRID STOCKS CLIMBED 13 AS MORE INVESTORS CLIMBED ABOARD A TWOWEEK RALLY THAT BEGAN ON HOPES OF LOWER INTEREST RATES A STRONG BOND MARKET ALSO HELPED TO BOOST PRICES STOCKHOLM SHARES ADVANCED 28 IN HEAVY TRADING TO THEIR HIGHEST LEVELS THIS YEAR MOST SECTORS ENJOYED STRONG GAINS IN ZURICH SHARE PRICES CLIMBED ON A STRONG EARNINGS REPORT FROM CS HOLDING'S MAIN BANKING UNIT CREDIT SUISSE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 5951 POINTS TUESDAY LOST 6880 TO 2077318 ON THURSDAY THE NIKKEI ROSE 250 POINTS TO CLOSE THE MORNING SESSION AT 2077568 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES DOWN FROM 3201 MILLION THE PREVIOUS DAY LOSERS OUTNUMBERED GAINERS 595362 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH FELL 629 POINTS TUESDAY DROPPED 589 POINTS TO 167586 DEALINGS WERE QUIET AS THE YEN'S AD VANCE AGAINST THE DOLLAR STALLED AND TRADERS OPTED TO WAIT ON THE SIDELINES FOR THE OUTCOME OF A MEETING THURSDAY OF GOVERNMENT ECONOMIC POLICY MAKERS IF THE MEETING FAILS TO PRODUCE CLEAR SIGNS OF NEW STIMULUS MEASURES THE MARKET WILL BE VULNERABLE ESPECIALLY WITH A FLOOD OF DOWNWARD REVISIONS OF EARNINGS FORECASTS LIKELY OVER THE COMING MONTH MOST OTHER ASIAN AND PACIFIC MARKETS FINISHED HIGHER IN SYDNEY STOCKS ROSE TO A SIXYEAR HIGH THE AUSTRALIAN GOVERNMENT'S BUDGET RELEASED TUESDAY WAS PERCEIVED AS GOOD NEWS FOR FINANCIAL MARKETS AND PRICES SUSTAINED THE MOMENTUM BUILT UP EARLIER THIS WEEK IN SINGAPORE SHARES ADVANCED 14 ON A LATE AFTERNOON RALLY TO A FOURTH STRAIGHT RECORD HIGH THE RUNUP FOLLOWED POSITIVE NEWS ON THE ECONOMY AND THE ANNOUNCEMENT OF DETAILS ON THE USE OF FUNDS FROM THE MANDATORY SOCIAL SAVINGS PLAN IN HONG KONG STOCKS RALLIED TO A THIRD STRAIGHT RECORD FINISH AS LATE BUY ORDERS ECLIPSED PROFITTAKING INTEREST COMMERCIAL AND INDUSTRIAL ISSUES WERE THE DAY'S LARGEST ADVANCERS FOLLOWED BY UTILITIES IN TAIPEI PRICES DROPPED AS SELLING PRESSURE LATE IN THE SESSION ERODED EARLY STRONG GAINS THE DECLINE FOLLOWED NEWS THAT THE MINISTRY OF INTERIOR PLANS TO START RAISING LAND PRICES TO CATCH UP WITH REAL MARKET PRICES WITHIN THREE YEARS IN SEOUL STOCKS SURGED 35 ON EXPECTATIONS THAT SOUTH KOREA'S GOVERNMENT WILL RAISE THE FOREIGN OWNERSHIP CEILING NOW SET AT 8 WHICH MANY FOREIGN INVESTORS CITE AS AN OBSTACLE TO PURCHASING KOREAN STOCKS IN WELLINGTON EQUITIES SOARED IN BUSY TRADING TO THEIR HIGHEST CLOSE IN ABOUT 3 1/2 YEARS AMONG CORPORATE DEVELOPMENTS IN WELLINGTON FLETCHER CHALLENGE JUMPED 47 NEW ZEALAND CENTS OR 16 TO NZ347 US192 THE FORESTRY AND RESOURCES CONGLOMERATE HAD A NZ3818 MILLION 2117 MILLION OPERATING PROFIT AFTER TAX AND ONETIME ITEMS IN THE YEAR ENDED JUNE 30 COMPARED WITH A NZ1575 MILLION LOSS THE PREVIOUS YEAR THE RESULTS WERE WELL ABOVE EXPECTATIONS IN FRANKFURT COMMERZBANK DROPPED 160 MARKS TO 32220 MARKS 19028 THE BANK'S PROFITS IN JULY AND AUGUST FOLLOWED THE TREND SET IN THE FIRST SIX MONTHS OF 1993 IN WHICH ITS GROUP OPERATING PROFIT ROSE 16 FROM A YEAR EARLIER VIAG FINISHED UNCHANGED THE DIVERSIFIED INDUSTRIAL GROUP'S PRETAX PROFIT FOR THE FIRST HALF OF 1993 FELL 21 TO 305 MILLION MARKS 1801 MILLION 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 9308190045 930819 MARKETING & MEDIA ADVERTISING SLEEPING GIANT' THE YELLOW PAGES TRIES TO WAKEN MADISON AVENUE BY KEVIN GOLDMAN THE YELLOW PAGES THE TELEPHONE BOOK THAT'S DUSTED OFF WHEN PIPES BURST KEYS ARE LOST THE AIR CONDITIONER BREAKS OR DINNER MEANS ORDERING PIZZA IS LOOKING BEYOND MOM AND POP ADVERTISERS TO SET ITS SIGHTS ON THE BIG TIME IT ISN'T GOING TO BE EASY PERSUADING MADISON AVENUE AND MAJOR NATIONAL CLIENTS TO DIVERT MONEY FROM SHRINKING BUDGETS TO PLACE ADVERTISEMENTS IN WHAT IS PERHAPS THE MOST CLUTTERED OF ALL COMMERCIAL ENVIRONMENTS THE YELLOW PAGES DIRECTORIES AFTER ALL ARE LITTLE MORE THAN COVERTOCOVER CHEAPLY PRODUCED DISPLAY ADS NEVERTHELESS THE YELLOW PAGES PUBLISHERS ASSOCIATION FORMED IN 1987 IS TAKING THAT UNORTHODOX STEP THE REASON REVENUES AREN'T GROWING AS FAST AS WE WOULD LIKE SAYS JIM LOGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ASSOCIATION WHICH INCLUDES 140 OF THE APPROXIMATELY 150 PUBLISHERS IN THE BUSINESS ALTHOUGH YELLOW PAGES ADVERTISING HAS ALMOST DOUBLED IN 10 YEARS LAST YEAR IT ROSE A SLENDER 1 OVERALL FOR THE 6000 DOMESTIC DIRECTORIES TO 93 BILLION FROM 92 BILLION IN 1991 THE VAST MAJORITY OF ADS SOLD ARE FOR LOCAL BUSINESSES LAST YEAR ALMOST 90 OF THE AD REVENUE WAS STRICTLY LOCAL FRANK BARTON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WAHLSTROM & CO IN STAMFORD CONN AN AD AGENCY THAT USES THE YELLOW PAGES FOR ITS CLIENTS CALLS THE DIRECTORIES SLEEPING GIANTS FOR ADVERTISERS THE BOOKS ARE PUBLISHED ONCE A YEAR MEANING EACH AD HAS A SHELF LIFE OF 12 MONTHS IT'S LIKE AN INDOOR BILLBOARD HE SAYS ONE OF THE CHALLENGES HE CONTINUES IS HOW TO GET ADVERTISERS TO REINFORCE THEIR BRANDS THROUGH THE YELLOW PAGES WHERE NATIONAL ADVERTISERS HAVE AN UNEXPECTED PRESENCE BUT A RELEVANT MESSAGE TO THAT END THE YELLOW PAGES PUBLISHERS ASSOCIATION IS QUIETLY CONDUCTING TESTS IN SEVEN EDITIONS GIVING AD SPACE AWAY TO NATIONAL ADVERTISERS INCLUDING PERRIER GROUP OF AMERICA PEPSICO PITTWAY'S FIRST ALERT SMOKE ALARM DRANO DRAIN CLEANERS AND CONAGRA'S MANWICH SLOPPY JOE SANDWICH AD TESTS ARE BEING CONDUCTED IN SPRINGFIELD MASS EL PASO TEXAS FLINT MICH AND MARIN COUNTY CALIF AMONG OTHER LOCALES ADS ARE POPPING UP IN PLACES THAT MAKE SENSE FOR EACH PRODUCT FOR INSTANCE PERRIER'S HALFPAGE AD WHICH PICTURES A BOTTLE OF THE SPARKLING MINERAL WATER AND THE HEADLINE KEEP YOUR NIGHTS SPARKLING CLEAR APPEARS IN THE HODGEPODGE OF RESTAURANT LISTINGS AMERICAN TELEPHONE & TELEGRAPH'S CALLING CARD AD WHICH SPORTS THE SLOGAN IT'S ALL IN THE CARDS RUNS WITH AIRLINE LISTINGS PEPSI ADS APPEAR WITH PIZZERIAS AND DRANO NOT UNEXPECTEDLY SHOWS UP IN THE HARDWARERETAIL SECTION FIRST ALERT IS INCLUDED AMONG DEPARTMENT STORE LISTINGS AND MANWICH WITH THE SLOGAN AMERICA'S FAVORITE AND PICTURES OF SLOPPY JOES IS FOUND NEXT TO LISTINGS FOR SCHOOLS ALBEIT A SOMEWHAT DISCONCERTING CONNECTION A PEPSI SPOKESWOMAN ENDORSES THE STRATEGY IT'S A NEW TWIST ON AN OLD WAY OF LISTING YELLOW PAGES USAGE IS UP PARTICULARLY IN THE PIZZA SECTION THE SOFTDRINK MAKER SAYS THE APPEARANCE OF ITS AD AMONG THE PIZZERIA LISTINGS IS AN UNEXPECTED SURPRISE CONSUMERS SEE OUR NAME IN THE SECTION AND HOPEFULLY THAT WILL PROMPT THEM TO ASK FOR PEPSI WHEN ORDERING IT'S A BUSINESS BUILDER A PERRIER SPOKESWOMAN SAYS THE TESTING REQUIRED NO RISK ON THE COMPANY'S PART SINCE IT WASN'T CHARGED FOR THE ADVERTISING BUT BRISTOLMYERS SQUIBB'S NUPRIN TRIED IT AND DIDN'T LIKE IT AND THE MARKETER IS NOW UNCONVINCED YELLOW PAGES ADVERTISING IS THE CURE FOR INCREASED COMPETITION I'M NOT SO SURE THIS IS A VENUE THAT WE WOULD CONTINUE TO PURSUE SAYS TED MAZZUCCA SENIOR MEDIA BUYER AT NUPRIN A SAMPLING OF CONSUMERS HE SAYS REVEALS THAT THE AD PLACED ABOVE OTHERS FOR DRUG STORES HAS VIRTUALLY NO IMPACT THE NUPRIN AD STANDS OUT WITH BIG BLACK BLOCK LETTERING THE SLOGAN NUPE IT WITH NUPRIN AND A PHOTOGRAPH OF THE PRODUCT BUT MR MAZZUCCA QUESTIONS WHETHER THE YELLOW PAGES WITH LOCAL ADS FOR THE LIKES OF RALPH PHARMACITY AND THRIFTY DRUGS & COSMETICS IS THE MOST APPROPRIATE PLACE FOR US TO GO MR MAZZUCCA POINTS TO ANOTHER DISADVANTAGE A COMPANY CAN'T GAUGE SALES BASED ON AN APPEARANCE IN THE YELLOW PAGES AN INABILITY THAT MADDENS MADISON AVENUE GIVEN ITS PENCHANT FOR TRYING TO QUANTIFY THE PAYOFF OF EVERY AD DOLLAR SPENT ONE POSSIBLE REMEDY IS TO INCLUDE COUPONS IN THE ADS SAYS TIM DISCIPIO DIRECTOR OF NEW BUSINESS DEVELOPMENT AT TMP WORLDWIDE IN RIDGEFIELD CONN AN AGENCY SPECIALIZING IN YELLOW PAGES ADS THAT HAS PLACED THEM FOR PEPSI NUPRIN AND DRANO ULTIMATELY ANYTHING IS POSSIBLE SAYS MR LOGAN OF THE YELLOW PAGES PUBLISHERS ASSOCIATION PRELIMINARY DATA FROM THE AD TEST WILL BE READY BY NEXT MONTH THE YELLOW PAGES KNOWN AS EVERYTHING FROM THE SMART PAGES IN CALIFORNIA TO THE EVERYTHING PAGES IN VARIOUS OTHER STATES ALSO NEEDS TO CENTRALIZE A SALES FORCE AND GET THE MESSAGE OUT MR LOGAN SAYS EVERY CITY AND MANY SMALL TOWNS AND VILLAGES HAVE THEIR OWN YELLOW PAGES LISTINGS WHICH ARE PUBLISHED ANNUALLY THE ADVANTAGE TO NATIONAL ADVERTISERS IS THAT THE SAME AD FOR SAY PEPSI OR DRANO CAN APPEAR IN EVERY YELLOW PAGES SEPARATE ADS DON'T HAVE TO BE PRODUCED WE FEEL THAT THE YELLOW PAGES IS USED WHEN THERE IS A NEED MR LOGAN SAYS WOULDN'T THAT BE A GOOD TIME TO REINFORCE THE BRANDS INTERNATIONAL BUSINESS MACHINES CORP ADDED THREE EUROPEAN ENTRIES TO THE LIST OF CONTENDERS FOR ITS GLOBAL PERSONALCOMPUTER ACCOUNT BOULET DRU DUPUY PETIT PARIS THE PARIS OFFICE OF OMNICOM GROUP'S DDB NEEDHAM AND THE TWOAGENCY TEAM OF GGT ADVERTISING OF LONDON AND GGK OF ZURICH THE THREE JOIN FIVE US COMPETITORS FOR IBM'S PC ADVERTISING WHICH IS EXPECTED TO BILL 80 MILLION WORLDWIDE INTERPUBLIC GROUP'S LINTAS ONE OF THE US CONTENDERS IS THE INCUMBENT ON THE PC ACCOUNT IN THE US AND SPLITS THE EUROPEAN PORTION WITH GGK TERMINATION AIR FRANCE AND AGENCY TBWA ADVERTISING A UNIT OF OMNICOM GROUP SAID THEY WILL SPLIT UP IN NOVEMBER WHEN THE STATEOWNED AIRLINE WILL MOVE ITS ESTIMATED 5 MILLION ACCOUNT TO WESTERN MEDIA INTERNATIONAL A NEW YORK MEDIA SERVICE FOR US THIS ENDS UP BEING MORE EFFICIENT SAID NILS PEYRON THE AIRLINE'S DIRECTOR OF ADVERTISING ADVERTISING CREATED BY TBWA WILL REMAIN ON THE AIR AND IN MAGAZINES HE SAID PRUNES AND GUINEA PIGS CHRYSLER CORP IS AIMING AT YOUNGER RICHER CUSTOMERS IN AD CAMPAIGNS FOR 1994 CHRYSLER AND PLYMOUTH CARS COCOON STARS WILFORD BRIMLEY AND DON AMECHE REUNITE IN A SPOT FOR THE CHRYSLER NEW YORKER IN WHICH MR BRIMLEY TURNS HIS NOSE UP AT A BOWL OF PRUNES AND SPEEDS OFF IN THE CHRYSLER SEDAN WITH HIS FRIEND ANOTHER SPOT FOR THE CONCORDE SEDAN THAT CHRYSLER INTRODUCED LAST YEAR SHOWS GUINEA PIGS TO MAKE THIS POINT SOMETIMES GUINEA PIGS HAVE A GREAT EXPERIENCE 9308190044 930819 REVIEW & OUTLOOK EDITORIAL ASIDES DISCHARGE CHARGE REP JIM INHOFE'S EFFORT TO END SECRET DISCHARGE PETITIONS WHICH ALLOW MEMBERS TO PUBLICLY CLAIM SUPPORT FOR A BILL WHILE PRIVATELY WORKING FOR ITS DEFEAT IS ATTRACTING SOME BIGNAME BOOSTERS RUSH LIMBAUGH ALERTED HIS LISTENERS TO OUR PUBLICATION THIS WEEK OF THE LIST OF 223 MEMBERS WHO REFUSED TO JOIN MR INHOFE'S EFFORT THE 50 STATE DIRECTORS OF ROSS PEROT'S ORGANIZATION HAVE BEEN ASKED TO MAKE DISCHARGE PETITION REFORM A HIGH PRIORITY MR PEROT HIMSELF WILL DISCUSS THE SUBJECT ON CSPAN TONIGHT AT 8 PM EDT OUTRAGED VOTERS ARE ALREADY MAKING AN IMPACT REP KAREN THURMAN A FIRSTTERM FLORIDA DEMOCRAT FAXED MR INHOFE YESTERDAY TO SAY SHE WILL NOW SIGN UP BY THE WAY THROUGH A PRODUCTION ERROR REP DAVE MCCURDY OF OKLAHOMA WAS OMITTED FROM THE LIST WE PUBLISHED HIS OFFICE CONFIRMS HE IS NOT SUPPORTING REP INHOFE 9308190043 930819 MARKETING & MEDIA TIMES PUBLISHING PAYS 56 MILLION FOR GROUP'S SHARES BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL TIMES PUBLISHING CO SAID IT PAID 56 MILLION TO BUY BACK ITS SHARES FROM A GROUP LED BY ROBERT M BASS WHICH MADE A RUN FOR THE COMPANY IN 1990 TIMES PUBLISHING SAID THE PURCHASE PRICE COVERS ALL REMAINING SHARES OWNED BY A GROUP OF INVESTORS LED BY MR BASS THE ST PETERSBURG FLA COMPANY WILL PAY AN ADDITIONAL 1 MILLION IN 1995 FOR SHARES DONATED TO STANFORD UNIVERSITY BY THE GROUP AT THAT POINT NO COMPANY SHARES WILL BE HELD BY OUTSIDERS IN REVEALING THE PRICES THE PUBLISHER OF THE ST PETERSBURG TIMES LIFTED A THREEYEAR VEIL OF SECRECY OVER ITS STOCK BUYBACK AGREEMENT WITH MR BASS IN 1988 THE GROUP PAID 28 MILLION FOR A 40 STAKE IN TIMES PUBLISHING THE CONFIDENTIAL AGREEMENT GENERATED CONSIDERABLE INTEREST IN THE NEWSPAPER INDUSTRY BECAUSE THE ST PETERSBURG TIMES IS ONE OF THE LAST REMAINING INDEPENDENT PAPERS THE AGREEMENT ALSO DREW FIRE FROM THE FLORIDA ATTORNEY GENERAL WHO RAISED CONCERNS THAT THE ACCORD MIGHT THREATEN THE FINANCIAL HEALTH OF THE POYNTER INSTITUTE FOR MEDIA STUDIES THE EDUCATIONAL FOUNDATION THAT OWNS A MAJORITY STAKE IN TIMES PUBLISHING HOWEVER THE TEXAS GROUP DIDN'T PROFIT AS MUCH AS WAS EXPECTED INDUSTRY ANALYSTS HAD ESTIMATED TIMES PUBLISHING PAID ANYWHERE BETWEEN 50 MILLION AND 200 MILLION FOR THE STAKE TIMES PUBLISHING NEGOTIATED A GOOD DEAL SAID JOHN MORTON MEDIA ANALYST WITH LYNCH JONES & RYAN BUT A SPOKESMAN FOR MR BASS SAID THE GROUP IS PLEASED CALLING THE SETTLEMENT FAVORABLE TO ALL PARTIES I FEEL RELIEF AND SATISFACTION THAT THE PAPER HAS COME THROUGH THIS DIFFICULT TIME SO WELL SAID ANDREW BARNES TIMES EDITOR PRESIDENT AND CHIEF EXECUTIVE IN A LETTER TO EMPLOYEES TIMES PUBLISHING WHICH ALSO PUBLISHES CONGRESSIONAL QUARTERLY MAGAZINE FLORIDA TREND AND OTHER MAGAZINES EXPECTS 1993 REVENUE OF ABOUT 200 MILLION THE COMPANY SAID THE BASS GROUP WHICH OWNED 200 SHARES OF THE COMPANY RECEIVED 53 MILLION FOR 150 OF THE SHARES IN 1990 TIMES PUBLISHING SAID IT EXERCISED A CALL AGREEMENT PAYING 3 MILLION FOR EIGHT SHARES THAT THE GROUP RETAINED DURING THE PAST THREE YEARS THOSE SHARES HAD RECEIVED 8540 IN DIVIDENDS PER SHARE EACH YEAR BUT THE INVESTMENT GROUP HAD TRANSFERRED VOTING POWER TO MR BARNES THE COMPANY FINANCED THE BASS BUYBACKS FROM ITS CASH RESERVES AND BORROWED 9 MILLION IN LATE 1990 THE COMPANY HAS ALREADY REPAID THAT DEBT MR BASS DONATED THE OTHER 42 SHARES TO STANFORD UNIVERSITY WHICH RECEIVES THE SAME DIVIDENDS EACH YEAR UNTIL AUGUST 1995 WHEN THE COMPANY WILL BUY THEM BACK FOR 1 MILLION AT THAT POINT ALL SHARES WILL BE HELD BY THE POYNTER INSTITUTE THE FOUNDATION WAS SET UP BY NELSON POYNTER WHO CONTROLLED THE ST PETERSBURG TIMES FROM 1947 UNTIL HIS DEATH IN 1978 MR POYNTER ALSO CREATED THE INSTITUTE TO AVOID REAL ESTATE TAXES AND TO MAINTAIN LOCAL CONTROL OF THE PAPER IN 1988 THE BASS GROUP PURCHASED ITS TIMES PUBLISHING STOCK FROM MR POYNTER'S TWO NIECES THE NIECES INHERITED THEIR STOCK FROM THEIR MOTHER ELEANOR POYNTER JAMISON MR POYNTER'S SISTER THE BASS GROUP OFFERED TO BUY THE REMAINING 60 OF THE COMPANY FOR 270 MILLION THE OFFER WAS REJECTED AND THE BASS GROUP SUED CLAIMING UNFAIR DIVIDEND PAYMENTS THAT LAWSUIT WAS DISMISSED AS PART OF THE AUGUST 1990 AGREEMENT 9308190042 930819 BUSINESS BRIEF COMPUSA INC COMPUTER SUPERSTORE CHAIN'S NET SURGED IN FOURTH PERIOD COMPUSA INC BOOSTED BY AGGRESSIVE EXPANSION SAID ITS FISCAL FOURTHQUARTER PROFIT ROSE 65 MEETING ANALYSTS' ESTIMATES THE DALLASBASED COMPANY WHICH OPERATES 54 COMPUTER SUPERSTORES POSTED NET INCOME FOR THE JUNE 26 QUARTER OF 38 MILLION OR 20 CENTS A SHARE COMPARED WITH 23 MILLION OR 13 CENTS A SHARE A YEAR AGO ON 13 FEWER SHARES OUTSTANDING SALES GREW 63 TO 3875 MILLION FROM 2371 MILLION A YEAR EARLIER SALES WERE BOOSTED BY THE ADDITION OF 20 STORES IN THE PAST YEAR SIX OF THEM IN THE FOURTH QUARTER AND A 247 GAIN IN STORES OPEN AT LEAST A YEAR A SPOKESMAN SAID GROSS PROFIT MARGINS ALSO IMPROVED TO 136 FROM 126 A YEAR AGO FOR THE FISCAL YEAR COMPUSA HAD NET OF 123 MILLION OR 67 CENTS A SHARE UP NEARLY 58 FROM YEAREARLIER NET OF 78 MILLION OR 62 CENTS A SHARE AFTER PAYMENT OF A 16 MILLION IN PREFERRED STOCK DIVIDENDS THERE WERE 44 MORE SHARES OUTSTANDING IN FISCAL 1993 SALES INCREASED 63 TO 134 BILLION FROM 8208 MILLION LAST YEAR IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY COMPUSA CLOSED AT 24625 UP 25 CENTS 9308190041 930819 CAR TALES DOG DAYS AT HONDA ARE THE CAT'S MEOW FOR CHRYSLER'S DEALERS WHILE THE ACCORD IS IN A RUT THE HEIRS OF IACOCCA REAP SALES INSTEAD OF SARCASM A HONDA MAN SHEDS HIS TOYS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DAVID MCDAVID FULLTIME HONDA DEALER AND SOMETIME PHILOSOPHER OFFERS THIS HOMILY ABOUT THE CAR BUSINESS IN THE 1990S I'VE LEARNED THAT THE SUN DOESN'T SHINE ON THE SAME DOG EVERY DAY MR MCDAVID ACTUALLY HAS TWO METAPHORICAL DOGS IN MIND HONDA THE CAR PHENOMENON OF THE 1980S AND CHRYSLER THE CAR COMPANY THAT HONDA AND EVERYBODY ELSE USED TO KICK AROUND AS MR MCDAVID KNOWS BETTER THAN MOST THINGS CHANGE THESE DAYS HONDA MOTOR CO FINDS ITS US MARKET SHARE SHRINKING IN A SALES SLUMP UNIMAGINABLE A FEW YEARS BACK EVEN HEAVY DISCOUNTING HASN'T APPRECIABLY BOOSTED ITS FORTUNES ONCELOYAL CUSTOMERS COMPLAIN THAT TODAY'S HONDAS ARE DATED AND UNINSPIRED CHRYSLER CORP MEANWHILE SEEMS TO HAVE REINVENTED ITSELF AFTER A DECADE OF MISSTEPS THAT GAVE IT A REPUTATION FOR STODGY DESIGN AND UNRELIABILITY IT HAS FOUGHT A SUCCESSFUL BATTLE TO STAY AT THE TOP OF THE HOT MINIVAN MARKET WHILE LAUNCHING FLASHY NEW CAR MODELS THAT CURRENTLY MAKE ITS 4739 US SHOWROOMS AMONG THE BUSIEST IN THE COUNTRY CONSIDERING THAT HONDA ONCE ALL BUT DEFINED JAPANESE CARMAKING ACUMEN WHILE CHRYSLER WAS ON THE VERGE OF BANKRUPTCY IT'S A REVERSAL OF FORTUNES SAYS JAKE KELDERMAN AN OFFICIAL FOR THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION OR NADA CARS BEING A CUTTHROAT BUSINESS MR MCDAVID'S CROSSTOWN RIVALS AT RIVER OAKS CHRYSLERPLYMOUTH FIND SWEET IRONY IN HONDA'S DISCORD WITH CONSUMERS STEVEN E WOLF A RIVER OAKS VICE PRESIDENT ADMITS THAT SELLING CHRYSLERS IN THE 1980S WAS ONE OF THE WORST JOBS IN THE WORLD INDEED SOMETHING OF AN EMBARRASSMENT BUT NOW SALES ARE SOARING MORALE IS HIGH AND WE'RE GETTING PEOPLE IN CHRYSLERS WHO HAVE NEVER BOUGHT A CHRYSLER IN THE PAST FOR MR MCDAVID WHO ONCE HAD A PERSONAL HELICOPTER TO FLIT BETWEEN HIS ROARING HONDA FRANCHISES THIS IS INDEED A STRANGE TURN OF EVENTS SLUMPING HONDA SALES HAVE FORCED HIM TO DITCH THE HELICOPTER AND HE NO LONGER ASSERTS AS HE DID IN THE 1980S THAT CHRYSLER IS THE JOKE OF THE INDUSTRY THERE ARE CAVEATS TO CHRYSLER'S EUPHORIA OF COURSE CHRYSLER STILL HASN'T MATCHED HONDA IN PRODUCT QUALITY AND CUSTOMER LOYALTY INDUSTRY ANALYSTS SAY AND THE HISTORY OF DETROIT IS LITTERED WITH ONCE HOTSELLING REBOUND MODELS THAT FIZZLE WHEN FICKLE CONSUMERS STAMPEDE TO A RIVAL'S LATEST OFFERING MOREOVER HONDA'S PROBLEMS TO SOME EXTENT REFLECT THE LARGER DOLDRUMS THAT VIRTUALLY ALL JAPANESE CAR MAKERS FIND THEMSELVES IN THESE DAYS THE POWERFUL YEN MAKES JAPANESEMADE PRODUCTS COSTLY TO DOLLARSPENDING CONSUMERS EVEN AS JAPAN'S OWN CAR BUYERS GROW STINGY AMID AN ECONOMIC SLUMP THE USBASED MANUFACTURING OPERATIONS OF HONDA AND OTHERS HELP RELIEVE SOME OF THIS PRESSURE BUT CONSIDER THAT ONLY THREEFOURTHS OF JAPANESE AUTO MAKERS ARE OPERATING PROFITABLY THESE DAYS DOWN FROM 95 FIVE YEARS AGO MOREOVER INDUSTRY EXPERTS SAY HONDA IS PERFECTLY CAPABLE OF REGAINING ITS US FOOTING IF IT SCORES A HIT WITH A REDESIGNED ACCORD ITS LONGTIME SALES HORSE DUE OUT THIS FALL IN JANUARY IT ALSO PLANS TO WADE FINALLY INTO THE THRIVING MARKET FOR SPORTUTILITY VEHICLES IT ALSO HAS A MINIVAN UNDER DESIGN STILL STATISTICS SHOW PLENTY OF REASON FOR CHRYSLER'S GLEE AND HONDA'S GLOOM UNIT SALES OF AMERICA'S NO 3 AUTOMAKER HAVE SOARED 269 SO FAR THIS YEAR FROM THE LIKE PERIOD A YEAR AGO AND ITS SHARE OF THE US PASSENGER CAR MARKET HAS JUMPED TO 10 THROUGH JULY 30 FROM 77 A YEAR EARLIER MEANWHILE SALES OF THE ACCORD ARE OFF 273 SO FAR THIS YEAR FROM 1992 LEVELS AND HONDA'S SHARE OF THE US PASSENGERCAR MARKET HAD SKIDDED 12 PERCENTAGE POINTS TO 78 BY JULY'S END FROM 9 A YEAR EARLIER THAT MEANS HONDA'S SHARE OF THE US CAR MARKET HAS SLIPPED BELOW CHRYSLER'S FOR THE FIRST TIME SINCE 1990 DESPITE WEAKENING SALES HONDA HAS RAISED PRICES TWICE SINCE FEBRUARY FURTHER PUTTING OFF SOME OF ITS LOYAL CUSTOMERS ALONG WITH THE HIGHER PRICES HAVE COME SECOND THOUGHTS ABOUT HONDA'S ONCEREVERED PRODUCT ACUMEN IN 1990 HONDA FINALLY GAVE ITS FAMILY BUYERS A STATION WAGON BUT SALES HAVE BEEN DULL IN PART BECAUSE OF THE POPULARITY OF MINIVANS AND IN PART BECAUSE RIVALS NOTABLY FORD MOTOR CO TOYOTA MOTOR CORP AND SWEDEN'S AB VOLVO OFFER WAGONS WITH A THIRD REARFACING SEAT THE FEATURE HAS PROVED WILDLY POPULAR WITH SUBURBAN CARPOOLERS WHO BUY THE BULK OF STATION WAGONS NO ONE FEELS THIS CHANGE IN FORTUNES MORE ACUTELY THAN THE MEN AND WOMEN ON THE FRONT LINE DEALERS MR MCDAVID FOR EXAMPLE REMEMBERS THE HEADY DAYS WHEN WE COULD SELL ALL THE HONDAS WE COULD GET OUR HANDS ON IN 1984 MCDAVID HONDA IN HOUSTON SOLD 3600 CARS MAKING IT THE NO 1 HONDA DEALERSHIP IN TEXAS WHILE MR MCDAVID'S DALLAS HONDA OUTLET SOLD 2500 CARS BUT LAST YEAR THE HOUSTON HONDA FRANCHISE FELL TO ONETHIRD OF ITS 1984 VOLUME WHILE THE DALLAS OUTLET SLIPPED TO 1800 VEHICLES MR MCDAVID SAYS BOTH DEALERSHIPS ARE PROFITABLE BUT THAT'S LARGELY BECAUSE OF THEIR BUSTLING PARTS AND SERVICES OPERATIONS FAR FROM BEING AN ANOMALY THE SALES DECLINES AT THE MCDAVID HONDA DEALERSHIPS ARE IN LINE WITH THE TREND THROUGHOUT HONDA'S 1000MEMBER US DEALER NETWORK INDUSTRY EXPERTS SAY AND THESE DAYS MR MCDAVID IS HAVING TO WORRY ABOUT SHEDDING EXCESS INVENTORY WHILE GRAPPLING WITH THE KIND OF HARD DECISIONS DOMESTIC DEALERS FACED IN THE 1980S HE HAS HAD TO LAY OFF STAFF FOR EXAMPLE HE HAS ALSO CUT ADVERTISING PUT MORE EMPHASIS ON TURNING PROFITS FROM USED CARS AND BEEFED UP PROGRAMS AIMED AT MAKING CUSTOMERS HAPPY HE EVEN QUIT SPONSORING LITTLE LEAGUE BASEBALL TEAMS AND THERE HAS BEEN ONE OTHER SOBERING ADJUSTMENT HIS SALES PEOPLE SINCE THE BEGINNING OF THE HONDA SLUMP IN 1991 HAVE HAD TO RESORT TO SELLING CARS FOR LESS THAN THE STICKER PRICE THAT IS A BIG COMEDOWN FROM THE DAYS WHEN HONDAS SOLD AT A PREMIUM OVER STICKER PRICE CUTTING BACK ISN'T MR MCDAVID'S STYLE NOW 51 HE STARTED SELLING CARS AT HIS FATHER'S OLDSMOBILE DEALERSHIP WHEN HE WAS JUST 16 TODAY HE OWNS THAT DEALERSHIP THE TWO HONDA STORES TWO ACURA DEALERSHIPS FOUR SATURN DEALERSHIPS AND ONE EACH FOR NISSAN SUZUKI BUICK PONTIAC AND GMC TRUCK IN THAT EMPIRE MR MCDAVID'S HONDA DEALERSHIPS USED TO BE THE CROWN JEWELS AND HE MADE SURE PEOPLE SAW THEM THAT WAY IN DALLAS A LAVISH CHANDELIER HANGS OVER THE SHOWROOM FLOOR ALONG THE WALL IS A MURAL PORTRAYING 200 YEARS OF TEXAS HISTORY INTERTWINED WITH MR MCDAVID'S FAMILY HISTORY HIS HUGE GLASSENCLOSED SECONDFLOOR OFFICE GIVES HIM A SWEEPING PANORAMA OF THE SHOWROOM BELOW BUT TODAY THE BRIGHTEST LIGHT IN MR MCDAVID'S CONSTELLATION INCREASINGLY COMES FROM SATURN THE THREEYEAROLD SMALL CAR FROM GENERAL MOTORS CORP DESPITE A RECENTLY ANNOUNCED RECALL OF SATURNS FOR A POTENTIAL ENGINEFIRE PROBLEM MR MCDAVID BELIEVES SATURN CAPTURES SOMETHING OF THE OLD HONDA SPIRIT WITH ITS EMPHASIS ON QUALITY AND ITS LOW NOHAGGLE PRICING MR MCDAVID HAS AT LEAST A TOE IN THE CHRYSLER REBOUND HE OWNS A CHRYSLER CORP JEEPEAGLE FRANCHISE BUT HE COULD ALSO KICK HIMSELF FOR DUMPING A CHRYSLERPLYMOUTH DEALERSHIP IN 1991 BECAUSE IT WAS LOSING MONEY IN 1992 CHRYSLER INTRODUCED THE RESTYLED LH FAMILY OF MIDSIZE SEDANS THAT HAS PROVED SO POPULAR I GOT OUT OF IT TOO SOON MR MCDAVID SAYS STATISTICS BEAR HIM OUT IN A DEALERSASSOCIATION SURVEY EARLIER THIS YEAR DEALERS RATED DOMESTIC FRANCHISES MORE VALUABLE THAN ASIAN FRANCHISES FOR THE FIRST TIME SINCE THE SURVEYS BEGAN IN 1985 JUST LAST YEAR EIGHT OF THE 10 MOST VALUED MARQUES WERE JAPANESE ONLY THREE JAPANESE MARQUES MADE DEALERS' TOP 10 THIS TIME NISSAN MOTOR CORP'S INFINITI DIVISION AND TOYOTA MOTOR'S LEXUS AND TOYOTA DIVISIONS SOME SEE THIS AS A CLEAR INDICATION THAT DETROIT'S COMPETITIVE RENAISSANCE HIGHER QUALITY AND BETTER STYLING IS PAYING OFF THE BIG THREE HAVE BECOME A MUCH MORE DIFFICULT CHALLENGE SAYS CHRISTOPHER CEDERGREN AN ANALYST AT AUTO PACIFIC GROUP INC IN SANTA ANA CALIF ACROSS TOWN MR WOLF COULD SECOND THAT THESE ARE HEADY TIMES AT RIVER OAKS CHRYSLERPLYMOUTH WHERE MR WOLF 28 HELPS RUN THE DEALERSHIP FOR HIS FATHERINLAW WHO OWNS IT ON ONE RECENT DAY THE SHOWROOM IS INDEED BUSTLING SALES PEOPLE HUSTLE TO ANSWER CUSTOMER QUERIES AND SEND PROSPECTIVE BUYERS OUT ON TEST DRIVES SALES HAVE REBOUNDED SO STRONGLY SINCE THE 1992 DEBUT OF THE LH SEDANS THAT THE DEALERSHIP WILL BUILD A NEW 2 MILLION FACILITY IN NOVEMBER IN MARCH RIVER OAKS WILL OPEN A JEEPEAGLE FRANCHISE THE DEALERSHIP HAS ADDED THREE SALESMEN SINCE THE END OF 1992 BRINGING ITS SALES STAFF TO 14 IN THE 1980S RIVER OAKS HAD TROUBLE ATTRACTING QUALIFIED SALESMEN BUT TODAY IT GETS A STEADY STREAM OF APPLICATIONS FROM THE INDUSTRY'S MOST EXPERIENCED CAR SELLERS AMONG RECENT HIRES WAS A 15YEAR VETERAN FROM A MERCEDESBENZ SHOP MR WOLF SAYS HIS CUSTOMERS HAVE CHANGED TOO IN THE 1980S CHRYSLER'S STATISTICS SHOWED THAT THE TYPICAL BUYER OF A NEW YORKER FIFTH AVENUE LUXURY CAR WAS A 66YEAROLD RETIREE TRADING IN ANOTHER CHRYSLER WE HAD PEOPLE WHO ONLY BOUGHT CHRYSLERS BECAUSE THEY LOVED LEE IACOCCA SAYS MR WOLF PEOPLE WERE ROOTING FOR THE UNDERDOG NOW CHRYSLERS SEEM TO BE APPEALING TO BUYERS ACROSS THE AGE SPECTRUM THE TYPICAL BUYER OF THE NEW CONCORDE MIDSIZE SEDAN IS UNDER 50 YEARS OLD AND COMPARISON SHOPS THE TOYOTA CAMRY AND HONDA ACCORD AS WELL AS LOWPRICED MODELS OF LEXUS AND ACURA WE'RE STARTING TO SEE A LOT MORE PEOPLE DRIVE UP TO THE DEALERSHIP IN IMPORT CARS A CHRYSLER SPOKESMAN SAYS BART HALE 32 AND A SELFEMPLOYED FINANCIAL ADVISER RECENTLY BOUGHT A PLYMOUTH VOYAGER MINIVAN FROM RIVER OAKS HE HAD CHECKED OUT THE TOYOTA PREVIA BUT SAYS HE DECIDED ON THE VOYAGER BECAUSE IT WAS 2000 CHEAPER AND OFFERED MORE FEATURES I LIKED THE PREVIA BUT IT WAS OVERPRICED HE SAYS IN THE 1993 FISCAL YEAR ENDED JUNE 30 RIVER OAKS SOLD 1576 VEHICLES NOT INCLUDING FLEET SALES UP 417 FROM 1112 SIX YEARS EARLIER CHRYSLER'S RALLY HAS GIVEN MR WOLF ONE THING HE RELISHES ESPECIALLY RESPECT HE REMEMBERS ATTENDING SOCIAL AND FAMILY GATHERINGS IN THE 1980S WITH HIS BROTHER A FORD DEALER PEOPLE WOULD BOMBARD HIS BROTHER WITH QUESTIONS THEY IGNORED ME MR WOLF SAYS TODAY THE OPPOSITE IS TRUE NOW THEY WANT TO KNOW ABOUT CHRYSLER PRODUCTS THE CHRYSLER SURGE HAS BEEN GOOD FOR HIM IN A MORE MATERIAL WAY MR WOLF IS HAVING A HOUSE BUILT IN A TONY SECTION OF HOUSTON RIGHT NEXT DOOR TO THE LARGEST HONDA DEALER IN TEXAS 9308190040 930819 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG WHAT IF EVERY TELEPHONE COMPANY USED A DIFFERENT SYSTEM OF PHONE NUMBERS SOME WITH MORE OR FEWER DIGITS OTHERS MIXING LETTERS AND NUMBERS AND ODD SYMBOLS AND WHAT IF YOU HAD TO DIAL A DIFFERENT ACCESS NUMBER TO CALL USERS OF EACH COMPANY'S SYSTEM THE TELEPHONE SYSTEM WOULD BE EVEN MORE UNWIELDY THAN MOST OF US THINK IT HAS BECOME IN RECENT YEARS EVERY BUSINESS AND INDIVIDUAL WOULD HAVE TO CONSIDER EITHER JOINING MULTIPLE PHONE SYSTEMS AND MASTERING SEVERAL ARCANE NUMBERING SCHEMES OR CALLING ONLY SUBSCRIBERS THAT ALSO USE THEIR BASE COMPANY YET THIS CLUMSY SCENARIO APPROXIMATES THE COMMERCIAL ELECTRONICMAIL SYSTEM TODAY THE ONLY EMAIL ALTERNATIVE FOR MILLIONS OF SMALL BUSINESSES AND INDIVIDUALS WHO LACK THE KIND OF INHOUSE ELECTRONIC MAIL COMMON IN LARGE ORGANIZATIONS THESE PEOPLE MUST OPEN ACCOUNTS WITH ONE OR MORE SEPARATE EMAIL PROVIDERS SUCH AS AT&T MAIL MCI MAIL AND COMPUSERVE EACH HAS ITS OWN INCOMPATIBLE ADDRESSING SCHEME AND DIFFERENT COMMANDS FOR SENDING AND RETRIEVING MESSAGES EACH HAS ITS OWN ACCESS NUMBER AND A SEPARATE SUBSCRIBER LISTING EACH HAS ITS OWN PROPRIETARY SOFTWARE FOR AUTOMATING EMAIL OPERATIONS IT'S POSSIBLE TO CALL MOST OF THEM USING A SINGLE GENERIC COMMUNICATIONS PROGRAM IF YOU'RE A SKILLED COMPUTER USER BUT THESE DON'T WORK FOR EVERY SERVICE AND THEY OFFER LESS AUTOMATION THAN THE SERVICES' OWN CUSTOM SOFTWARE AND THERE IS A WAY TO SEND MESSAGES FROM ONE SERVICE TO USERS ON ANOTHER ONE IF YOU KNOW THEIR ADDRESS BY THE LOOSE ALLIANCE OF COMPUTER NETWORKS KNOWN AS THE INTERNET TO WHICH MOST OF THE SYSTEMS ARE LINKED BUT THE COMMANDS TO DO THIS CAN BE TRICKY AND RIGID SO MOST USERS OF COMMERCIAL EMAIL EITHER RESTRICT THEIR MESSAGING TO A SINGLE SYSTEM OR JOIN SEVERAL OF THEM AND STRUGGLE WITH MULTIPLE SOFTWARE PROGRAMS NOW HOWEVER CONNEC