AMTRAN INC INDIANAPOLIS ROBERT A ABEL PAST CHAIRMAN OF THE INDIANAPOLIS CHAPTER OF THE INDIANA CPA SOCIETY AND WILLIAM P ROGERS JR A PARTNER WITH THE NEW YORK LAW FIRM OF CRAVATH SWAINE & MOORE WERE NAMED DIRECTORS OF THIS PROVIDER OF CHARTER AIRLINE SERVICES TO LEISURE TRAVELERS INCREASING BOARD MEMBERSHIP TO SIX 9306280103 930628 BUSINESS BRIEF ROADMASTER INDUSTRIES INC AN AGREEMENT IS SIGNED TO BUY FLEXIBLE FLYER CO ROADMASTER INDUSTRIES INC SAID IT HAS SIGNED AN AGREEMENT TO BUY FLEXIBLE FLYER CO THE 104YEAROLD MAKER OF CHILDREN'S SLEDS AND GYM SETS TERMS WEREN'T DISCLOSED ROADMASTER SAID FLEXIBLE FLYER A DIVISION OF CLOSELY HELD PAR INDUSTRIES INC MEDINA OHIO REPORTED FISCAL 1992 REVENUE OF ABOUT 40 MILLION IN ADDITION TO ITS WELLKNOWN LINE OF SLEDS AND GYMS THE COMPANY ALSO MAKES HOBBY HORSES AND SNOW SETS ROADMASTER ITSELF A MAKER OF CHILDREN'S TOYS SAID THE DEAL IS FOR CASH DEBT ASSUMPTION AND THE ISSUANCE OF ADDITIONAL ROADMASTER SHARES ROADMASTER ENGLEWOOD COLO SAID IT EXPECTS THE DEAL TO CLOSE IN SEPTEMBER PENDING AN ANTITRUST REVIEW 9306280102 930628 BUSINESS BRIEF NEW YORK STATE ELECTRIC & GAS CORP SECONDPERIOD NET EXPECTED BELOW YEAREARLIER PERIOD'S NEW YORK STATE ELECTRIC & GAS CORP ITHACA NY SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE BELOW THE ADJUSTED 39 CENTS A SHARE EARNED IN LAST YEAR'S SECOND QUARTER THE UTILITY'S SHARES WERE OFF SOMEWHAT ON THE NEWS CLOSING FRIDAY AT 34625 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN THE YEARAGO SECOND QUARTER THE COMPANY EARNED 60 CENTS A SHARE BUT DID NOT REFLECT A CHANGE IN ACCOUNTING FOR UNBILLED REVENUE ADOPTED LATER IN 1992 HAD THAT ACCOUNTING CHANGE BEEN IN EFFECT FOR THE ENTIRE 1992 CALENDAR YEAR EARNINGS WOULD HAVE BEEN 39 CENTS A SHARE FOR THE SECOND QUARTER JAMES A CARRIGG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE CONTINUE TO EXPERIENCE WEAK ELECTRIC SALES AS A RESULT OF THE SLUGGISH ECONOMY HE ADDED THAT DESPITE THOSE WEAK SALES THE COMPANY REMAINS COMMITTED TO EARNING ITS ALLOWED RETURN ON COMMON EQUITY IN 1993 AND BEYOND WE WILL DO THAT THROUGH COSTCUTTING MEASURES ESTABLISHED EARLIER THIS YEAR AND BY CONTINUING OUR AGGRESSIVE MARKETING EFFORTS 9306280101 930628 TECHNOLOGY INFORMATION AGE VIRTUAL REALITY IS NO LONGER IN THE FUTURE BY WILLIAM M BULKELEY VIRTUAL REALITY IS STARTING TO GET REAL BULLDOZER DESIGNERS ARCHITECTS MONEY MANAGERS AND ASTRONAUTS ARE DONNING HEADSETS OR NAVIGATING AROUND IMAGINARY WORLDS ON COMPUTER SCREENS IT ISN'T WILD PALMS TV'S FUTURISTIC TALE OF TECHNOLOGYINDUCED IMAGES SO TANGIBLE THEY MAKE REALITY A BLUR BUT VIRTUAL REALITY IN THE PRESENT TENSE IS HELPING WORKERS DO A BETTER JOB IN THEIR REAL WORLDS IN A FEW WEEKS NASA'S HOUSTON SPACE CENTER WILL BEGIN TRAINING ASTRONAUTS FOR A MISSION TO REPAIR THE HUBBLE SPACE TELESCOPE USING VIRTUAL REALITY FOR BETTER SIMULATIONS OF HOW OBJECTS BEHAVE IN SPACE THEY WILL WEAR HELMETS WITH SCREENS INSIDE THAT GIVE A 120DEGREE VIEW OF A CARTOONLIKE BUT GEOMETRICALLY EXACT SATELLITE IN SPACE THEY WILL WEAR GLOVES ON THEIR HANDS WITH SENSORS THAT LET THEM MANEUVER THE VIRTUAL SATELLITE THE VIRTUAL HUBBLE IS EXPECTED TO PROVIDE MORE REALISTIC TRAINING THAN ASTRONAUTS GET WHEN THEY SIMULATE WORKING WEIGHTLESS UNDERWATER WATER PROVIDES RESISTANCE NOT PRESENT IN SPACE LAST YEAR ASTRONAUT RICK HIEB FAILED TO REPAIR AN INTELSAT SATELLITE DURING HIS FIRST SPACEWALK HE'D DONE IT 100 TIMES IN THE POOL BUT WHEN HE BUMPED AGAINST MTHE SATELLITEJ THERE IT DIDN'T GO ANYWHERE SAYS R BOWEN LOFTIN A UNIVERSITY OF HOUSTON PHYSICS PROFESSOR WORKING WITH NASA IN SPACE A SMALL MOTION MOVED IT AND SURPRISED HIM NO END THE REPAIR JOB ULTIMATELY TOOK THREE ASTRONAUTS VIRTUAL REALITY HIT THE CULTURAL MAINSTREAM LONG BEFORE MOST PEOPLE EVER TOUCHED IT BESIDES TV THE MOVIE LAWNMOWER MAN AND RECENT DOONESBURY CARTOON STRIPS HAVE ALL FEATURED VR ENTERTAINMENT IS LIKELY TO BE THE MOST LUCRATIVE SEGMENT OF THE VIRTUAL REALITY BUSINESS BUT THERE ARE OTHER GAINS A LOT OF PEOPLE ARE SURPRISED THAT PEOPLE ARE ACTUALLY FIGURING OUT USES FOR THIS STUFF SAYS BEN DELANEY EDITOR AND PUBLISHER OF CYBEREDGE JOURNAL SAUSALITO CALIF A NEWSLETTER USING SOFTWARE PROGRAMS LIKE WORLDTOOLKIT FROM SENSE CORP SAUSALITO CALIF OR CYBERSPACE DEVELOPER KIT FROM AUTODESK INC SAUSALITO PROGRAMMERS ARE CREATING VIRTUAL WORLDS ON PERSONAL COMPUTERS AFTER ARCHITECTS AT OWP&P ARCHITECTS INC IN CHICAGO DESIGNED A 140ROOM HOSPITAL THEY USED A NEW PROGRAM CALLED WHEELCHAIR VR DEVELOPED BY PRAIRIE VIRTUAL SYSTEMS CORP CHICAGO THEY SAT DOWN IN A WHEELCHAIR CONNECTED TO A COMPUTER DONNED HEADMOUNTED DISPLAYS THAT SHOWED THE ROOM ON LENSES IN FRONT OF THEIR EYES AND TRIED TO MOVE AROUND WE FOUND OUT IN THE VIRTUAL WORLD THAT THE COUNTERTOP IN THE BATHROOM STUCK OUT TWO INCHES TOO FAR FOR PATIENTS IN WHEELCHAIRS TO USE THE SINK SAYS DANIEL J CINELLI A PARTNER IN THE FIRM THE ARCHITECTS FIXED THE DESIGN GIVEN THE MANDATES OF THE AMERICANS WITH DISABILITIES ACT IF IT HAD BEEN INSTALLED WRONG 140 TIMES IT WOULD HAVE COST 56000 TO FIX IT SAYS MR CINELLI BUT RUNNING DESIGNERS THROUGH THE MODEL COST ONLY 10000 THEY ALSO COULD CHECK OUT THE VIEWS AVAILABLE TO PATIENTS LYING IN THEIR BEDS AND EVEN WHETHER WINDOWS WOULD CAST A GLARE ON PATIENTS' TV SETS MR DELANEY SAYS THAT ANY COMPUTERIZED THREEDIMENSIONAL MODEL THAT LETS AN INDIVIDUAL NAVIGATE THROUGH IT AT RANDOM CAN BE VIRTUAL REALITY THAT DEFINITION INCLUDES MY HOUSE A COMPUTERIZED DESIGN PROGRAM FROM DESIGNWARE INC WATERTOWN MASS THAT RETAILS FOR ABOUT 49 A HOMEOWNER DESIGNS A KITCHEN ON A SCREEN SELECTS AN ANGLE TO VIEW IT FROM AND THE PROGRAM DRAWS THE VIEW DESIGNWARE LETS A FAMILY SEE HOW THE KITCHEN LOOKS TO A TODDLER SUGGESTING TROUBLESOME CORNERS AND EDGES DESIGNWARE'S NEW 89 3D OFFICE LETS BOSSES SEE IF THEY'LL BE ABLE TO SPOT FROM A DESK WORKERS IDLING AT THE WATER COOLER ARCHITECTS SAY ONE BIG ADVANTAGE OF VIRTUAL REALITY IS THAT CLIENTS WHO DON'T KNOW HOW TO READ BLUEPRINTS STILL CAN SEE WHAT THE ROOM WILL LOOK LIKE JEFF SKODASMITH A FACILITIES DESIGNER AT SHANDS HOSPITAL IN GAINESVILLE FLA WANTED ADVICE FROM SURGEONS WHEN HE WAS DESIGNING AN OPERATING ROOM USING A PROGRAM THAT IS UNDER DEVELOPMENT BY MICRON GREEN INC A GAINESVILLE COMPUTERIZED DESIGN FIRM HE USED HIS DESIGNS TO CREATE THE ROOM AND THEN SAT THE SURGEONS DOWN THEY QUICKLY ORDERED HIM TO MOVE A WINDOW SO THEY COULD SEE A TECHNICIAN WHO MONITORS EQUIPMENT FROM THE NEXT ROOM ANOTHER TYPE OF ARTIFICIAL WORLD CREATED BY USING VIRTUAL REALITY SOFTWARE IS USED BY A FEW WALL STREET TRADERS TO SPOT TRENDS MAXUS SYSTEMS INTERNATIONAL NEW YORK HAS DEVISED A SYSTEM METAPHOR MIXER THAT PORTRAYS THE WORLD'S MARKETS IN THREE DIMENSIONS ON A VIDEOSCREEN GRID COUNTRIES ARE ON ONE AXIS AND INDUSTRIES ON ANOTHER AND LOGOS OF SELECTED INDIVIDUAL STOCKS FLOAT ABOVE OR BELOW THE GRID TO SHOW WHETHER THEY'RE UP OR DOWN ON THE DAY THE SYSTEM USES LIVE MARKET FEEDS AND PORTRAYS INDIVIDUAL STOCKS AS TINY TRIANGLES AND SQUARES IF THE STOCKS ARE ACTIVE THE SYMBOLS SPIN OR BLINK BY LOOKING AT THE VISUALIZATION OF THE WHOLE WORLD OF STOCKS TRADERS EXPECT TO SPOT TRENDS A FEW MINUTES BEFORE THEY ARE OBVIOUS TO OTHERS ONE USER GEORGE GABRIEL VICE PRESIDENT OF FOREIGN EQUITIES AT ABD SECURITIES INC A UNIT OF DRESDNER BANK SAYS THAT IN LOOKING FOR ARBITRAGE OPPORTUNITIES IN OPTIONS AND WARRANTS METAPHOR MIXERGIVES YOU A COLOR SNAPSHOT OF THOSE WITH HIGH VOLATILITY BECAUSE THEY'RE CODED BLUE THIS YEAR WHEN SMALLCAPITALIZATION STOCKS IDENTIFIED BY TRIANGULAR CHIPS ON THE SCREEN WERE BOOMINGYOU SAW ALL THE TRIANGLES VIBRATING AND IT WAS JUST THAT DIMENSION ACTING STRANGE SAYS PAUL S MARSHALL EXECUTIVE DIRECTOR OF MAXUS SOME BIG US MANUFACTURERS ARE USING VIRTUAL REALITY CREATING VIRTUAL MODELS ELIMINATES THE COST AND TIME OF BUILDING PHYSICAL MODELS OF WOOD AND CLAY CATERPILLAR INC USES THE UNIVERITY OF ILLINOIS'S SUPERCOMPUTER CENTER TO LET BACKHOE DESIGNERS CHECK OUT SIGHT ANGLES BY WATCHING A VIRTUAL BUCKET SCOOP VIRTUAL DIRT CHRYSLER CORP ENGINEERS HAVE BEEN WORKING AT INTERNATIONAL BUSINESS MACHINES CORP ON CAR INTERIOR DESIGNS TO MAKE SURE THAT DRIVERS CAN SEE THE GAS GAUGE NO MATTER WHAT ANGLE THE STEERING WHEEL AND SEAT ARE AT AT NORTHROP CORP ENGINEERS DESIGNING PARTS FOR THE F18 FIGHTER STRAP ON A HELMET AND DATAGLOVE TO MAKE SURE THE PIECES CAN BE MANEUVERED INTO PLACE THROUGH BULKHEADS VIRTUAL REALITY ALSO IS HELPING TO TRAIN PEOPLE FLIGHT SIMULATORS FOR TRAINING PILOTS ARE SOMETIMES CONSIDERED THE PROGENITOR OF VIRTUAL REALITY AS COMPUTERS GET CHEAPER PEOPLE CAN BE TRAINED FOR MORE MUNDANE TASKS FOR EXAMPLE WHEELCHAIR VR WAS FIRST USED AT A VETERANS ADMINISTRATION HOSPITAL TO TRAIN PARAPLEGICS TO GET AROUND IN APARTMENTS BEFORE THEY ACTUALLY MOVED IN SAYS JOHN TRIMBLE PRESIDENT OF PRAIRIE SYSTEMS 9306280100 930628 REVIEW & OUTLOOK EDITORIAL BAGHDAD AND BEYOND THE RETALIATORY ATTACK ON IRAQ'S INTELLIGENCE HEADQUARTERS IS IMPORTANT IN ITS OWN RIGHT BUT EVEN MORE IMPORTANT AS A PRECEDENT IN THE NASCENT ERA NOW SUPPLANTING OUR CENTURY'S WORLDSPANNING CONFRONTATIONS IN THE NEXT CENTURY THE CRUISE MISSILE WILL BE TO STATESPONSORED TERRORISM WHAT THE MANOFWAR WAS TO THE LAST CENTURY'S PIRACY PONDER FOR A MOMENT THE SIMPLE MILITARY DEMONSTRATION FROM SHIPS STANDING OFF IN THE RED SEA AND PERSIAN GULF THE UNITED STATES DESTROYED THE LEADERSHIP OFFICES OF IRAQI INTELLIGENCE AND SEVERELY DAMAGED A SEVENBUILDING COMPOUND IN DOWNTOWN BAGHDAD NO NUCLEAR WARHEADS ARE NEEDED AND NO US PERSONNEL WERE PUT AT DIRECT RISK WHILE POSTACTION REPORTS SHOWED THAT THREE OF THE 23 MISSILES MISSED THEIR TARGET AND LANDED IN RESIDENTIAL AREAS CIVILIAN DAMAGE WAS SMALL WHEN COMPARED WITH ANY PREVIOUS ILITARY TECHNOLOGY THE ATTACK IS OF COURSE NOT A SUBSTITUTE FOR UNSEATING SADDAM HUSSEIN AN OBJECTIVE WE URGED ON THE BUSH ADMINISTRATION ON THE EVE OF THE GULF WAR GROUND OFFENSIVE EVEN SO THE BLOW AGAINST SADDAM SHOULD GIVE PAUSE TO OTHER PIRATES AROUND THE WORLD IF PRESIDENT CLINTON CAN DO THIS TO IRAQI INTELLIGENCE HE CAN IF HE CHOOSES ALSO DO IT TO TERRORIST CAMPS IN THE SUDAN RENEGADE NUCLEAR PROGRAMS IN NORTH KOREA AND YES MILITARY INSTALLATIONS IN SERBIA WHILE MR CLINTON WILL SURELY NOT BE SO RASH IT IS SOMETHING THAT TERRORISTS NUCLEAR PROLIFERATORS AND ETHNIC CLEANSERS NOW MUST PUT IN A NEW MENTAL BALANCE IN A CERTAIN WAY THE DEMONSTRATION IS ALL THE MORE POWERFUL COMING AS IT DOES FROM THE FIRST POSTCOLD WAR PRESIDENT THE UNITED STATES REMAINS THE SOLE SUPERPOWER AND ANY PRESIDENT WILL IN THE END COME TO RECOGNIZE THIS RESPONSIBILITY WORLD OPINION THE UNITED NATIONS AND THE LEFT WING OF HIS OWN POLITICAL PARTY ARE THINGS TO WORRY ABOUT LATER SADDAM AND THE LIKE WILL NOW HAVE TO REASSESS BILL CLINTON AND SO WILL WE IF THIS ACTION WINS HIM NEW POLITICAL SUPPORT AT HOME HE WILL HAVE EARNED IT IT IS ALWAYS EASY TO FIND REASONS TO EQUIVOCATE ON THE USE OF FORCE SOMEONE WILL ALWAYS RAISE DOUBTS ABOUT EVEN THE CLEAREST EVIDENCE OF TERRORIST COMPLICITY THERE ARE ALWAYS RISKS THAT SOMETHING WILL GO WRONG PRESIDENT CARTER REMEMBER LOST HIS SECRETARY OF STATE OVER THE DECISION TO USE FORCE TRYING TO LIBERATE AMERICANS HELD HOSTAGE IN IRAN AND WITH THE ALMOST SOLE EXCEPTION OF THESE COLUMNS THE WHOLE WORLD CONDEMNED ISRAEL FOR ITS 1981 BOMBING RAID ON THE OSIRAK NUCLEAR REACTOR WHICH IN THE END MEANT SADDAM DID NOT HAVE NUCLEAR WEAPONS IN THE GULF WAR BUT MR CLINTON CUT THROUGH THE DOUBTS DEMONSTRATING THAT HE CAN MAKE DECISIONS THIS SUGGESTS MOREOVER THAT MR CLINTON IS LEARNING ON THE JOB WE'RE SURE THAT HE'S ALREADY GAINED A NEW APPRECIATION AND UNDERSTANDING OF THE MILITARY SERVICES AND WE HOPE HIS OWN REASSESSMENT DOESN'T END THERE NO ONE WOULD EXPECT HIM IMMEDIATELY TO RETHINK HIS MISBEGOTTEN ECONOMIC PROGRAM OF COURSE BUT HE MAY FIND HERE AN ALTERNATIVE TO THE ALREADY DUBIOUS CLASSWARFARE POLITICAL STRATEGY THAT UNDERLIES IT IN BUILDING POPULAR SUPPORT HIS PERFORMANCE AS PRESIDENT WILL BE FAR MORE IMPORTANT AND SURELY ONE OF THE HISTORICAL TASKS HE INHERITS IS DEVELOPING AN INTERNATIONAL SECURITY STRATEGY FOR THE NEW ERA THE COLD WAR THREAT OF NUCLEAR ARMAGEDDON HAS FADED AND INFORMATION TECHNOLOGY UNDERMINES THE RELEVANCE OF TRADITIONAL NATIONSTATE DIPLOMACY SO FAR THE US HAS PERFORMED POORLY IN THIS ENVIRONMENT THE BUSH ADMINISTRATION LEFT SADDAM IN PLACE AND LEFT ITS SUCCESSOR AN IMPOSSIBLE ENDGAME IN THE BALKANS THE CLINTON ADMINISTRATION SEEMS TO BE SELLING OUT THE WESTERN POSITION ON HUMAN RIGHTS BUT AT LEAST HAS DECIDED TO CONTINUE INTERNATIONAL BROADCASTING AND NOW HAS CONDUCTED THE BAGHDAD DEMONSTRATION THERE IS ONE PARTICULAR WE HOPE MR CLINTON HASTENS TO REASSESS AFTER BAGHDAD WE HOPE HE IMAGINES SOME FUTURE PRESIDENT WEIGHING A SIMILAR RAID AFTER THE LIKES OF IRAQ HAVE ACQUIRED A NUCLEAR CAPABILITY AND A RUDIMENTARY INTERCONTINENTAL MISSILE THREAT DOES MR CLINTON REALLY WANT TO GO DOWN IN HISTORY AS THE PRESIDENT AS HIS FOLKS SO FAR BRAG WHO KILLED RONALD REAGAN'S STAR WARS OR WOULD HE PREFER TO BRAG ABOUT STARTING TO DEPLOY THE MISSILE DEFENSE THAT WILL GIVE HIS SUCCESSORS THE SAME FREEDOM OF ACTION HE ENJOYED IN MAKING THIS WEEK END'S DECISION 9306280099 930628 INTERNATIONAL BRITISH SHELL SIGNS PACT WITH CHINESE CONCERN SPECIAL TO THE WALL STREET JOURNAL BEIJING THE SHELL GROUP OF BRITAIN SIGNED A CONTRACT WITH A CHINESE COMPANY TO PROSPECT FOR OIL IN EAST CHINA'S JIANGSU PROVINCE THE XINHUA NEWS AGENCY SAID ACCORDING TO THE AGREEMENT WITH CHINA NATIONAL OIL & GAS EXPLORATION & DEVELOPMENT CORP THE BRITISH COMPANY WILL ASSUME THE RISK IN PROSPECTING AND SINKING WELLS XINHUA SAID THE LICENSE ALLOWS SHELL TO PROSPECT FOR SEVEN YEARS AND SINK WELLS FOR 15 YEARS OVER AN AREA IN JIANGSU SEISMIC PROSPECTING WILL BEGIN THIS SEPTEMBER THE CONTRACT GIVES THE CHINESE SIDE 51 OF THE SHARES AND THE BRITISH SIDE 49 9306280098 930628 INTERNATIONAL NETHERLANDS POSTS TRADE SURPLUS AMSTERDAM THE NETHERLANDS HAD A TRADE SURPLUS OF TWO BILLION GUILDERS 104 BILLION IN FEBRUARY ABOUT DOUBLE THE SIZE OF THE SURPLUS IN THE YEAREARLIER PERIOD THE CENTRAL BUREAU FOR STATISTICS REPORTED THE GOVERNMENT AGENCY SAID IMPORTS STOOD AT 18 BILLION GUILDERS IN FEBRUARY WHILE EXPORTS TOTALED 20 BILLION GUILDERS IN FEBRUARY 1992 THERE WERE 20 BILLION GUILDERS OF IMPORTS AND 21 BILLION GUILDERS OF EXPORTS 9306280097 930628 BUSINESS BRIEF DATA GENERAL CORP REVENUE AND LOSS TO TRAIL ANALYSTS' LOW EXPECTATIONS DATA GENERAL CORP WESTBOROUGH MASS SAID IT EXPECTS REVENUE AND LOSSES FOR THE THIRD QUARTER ENDED SATURDAY WILL TRAIL ANALYSTS' ALREADY LOW EXPECTATIONS THE COMPUTER MAKER SAID WEAKERTHANEXPECTED ORDER RATES IN EUROPE ARE THE MAIN REASON ANALYSTS HAD BEEN FORECASTING A NET LOSS FOR THE QUARTER OF AROUND 15 CENTS A SHARE NARROWED FROM THE YEARAGO NET LOSS OF 117 MILLION OR 35 CENTS A SHARE ANALYSTS HAD FORECAST REVENUE WOULD ABOUT EQUAL LAST YEAR'S 2592 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY DATA GENERAL FELL 50 CENTS TO 875 9306280096 930628 INTERNATIONAL JAPANESE VEHICLE EXPORTS FALL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES FELL 11 IN MAY FROM THE YEAREARLIER MONTH TO 359513 UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION ANNOUNCED IT SAID VEHICLE EXPORTS IN MAY DECLINED TO THE LOWEST LEVEL SINCE AUGUST 1979 WHEN JAPAN SHIPPED 353701 UNITS 9306280095 930628 BUSINESS BRIEF CENTRAL LOUISIANA ELECTRIC CO COMPANY TO TAKE A CHARGE AND CUT WORK FORCE 10 CENTRAL LOUISIANA ELECTRIC CO ABOUT TO BEGIN A COMPANY RESTRUCTURING WILL TAKE A 6 MILLION THIRDQUARTER CHARGE AND ELIMINATE ABOUT 150 POSITIONS OR 10 OF ITS WORK FORCE THE PINEVILLE LA UTILITY SAID IT EXPECTS TO ACHIEVE THE WORK FORCE REDUCTIONS THROUGH ATTRITION EARLY RETIREMENT AND VOLUNTARY SEVERANCE PROGRAMS THE CUTS WILL REQUIRE THE NONCASH CHARGE WHICH WILL BE RECOVERED DURING THE NEXT 18 MONTHS SAID CENTRAL LOUISIANA IN 1992'S THIRD QUARTER THE COMPANY EARNED 191 MILLION OR 83 CENTS A SHARE ON 1055 MILLION IN REVENUE 9306280094 930628 INTERNATIONAL SALARIES IN SPAIN ADVANCE 72 MADRID SALARIES OF SPANISH WORKERS ROSE 72 IN THE FIRST QUARTER FROM A YEAR AGO THE NATIONAL STATISTICS INSTITUTE SAID IT SAID THE AVERAGE MONTHLY SALARY OF A SPANISH WORKER INCLUDING OVERTIME REACHED 168490 PESETAS 1294 IN THE QUARTER THE INSTITUTE DIDN'T SPECIFY IF THE FIGURE WAS GROSS OR AFTER TAX AND NO YEAREARLIER EARNINGS WERE GIVEN BY SECTOR WAGES IN CONSTRUCTION CLIMBED 62 TO 140384 PESETAS A MONTH IN THE FIRST PERIOD WHILE SALARIES IN THE SERVICE SECTOR ROSE 67 TO 170228 PESETAS A MONTH 9306280093 930628 PANEL IS PROBING EARLY ABBOTT AIDS TEST ROLE OF RED CROSS TEST'S RELIABILITY IS QUESTIONED BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL IN 1985 ABBOTT LABORATORIES WON APPROVAL FOR A MAJOR MEDICAL ADVANCE A TEST TO DETECT THE AIDS VIRUS IN DONATED BLOOD BUT CONGRESSIONAL INVESTIGATORS NOW BELIEVE THE EARLY AIDS TEST MISSED TOO MANY BLOOD DONATIONS CONTAMINATED WITH HIV THE VIRUS THAT CAUSES AIDS CONSEQUENTLY DOZENS OF UNSUSPECTING SURGICAL AND OTHER PATIENTS MAY HAVE RECEIVED CONTAMINATED BLOOD SAY INVESTIGATORS FOR THE HOUSE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS THE INVESTIGATORS ALSO ARE CRITICAL OF THE AMERICAN RED CROSS'S CONTINUED USE OF THE ABBOTT TEST FOR MONTHS THROUGHOUT 1986 DESPITE EVIDENCE THAT OTHER RECENTLY INTRODUCED TESTS WERE MORE ACCURATE THE ISSUE RAISES QUESTIONS ABOUT THE JUDGMENT OF COMPANIES AND ORGANIZATIONS IN DECISIONMAKING THAT AFFECTS LIVES THE RED CROSS FOR ITS PART CLAIMS IT WAS FACED WITH A DILEMMA WHILE IT WAS AWARE OF THE PROBLEMS WITH THE ABBOTT BLOOD TEST IT BELIEVED ANY SWITCH TO A DIFFERENT TEST COULD HAVE CREATED MORE PROBLEMS THAN IT SOLVED ABBOTT DECLINED TO COMMENT FOR THIS ARTICLE BUT HAS PREVIOUSLY DEFENDED THE PERFORMANCE OF THE BLOOD TEST STAFF MEMBERS OF THE HOUSE PANEL HEADED BY REP JOHN DINGELL D MICH SAY THE SUBCOMMITTEE EXPECTS TO PUBLISH A REPORT ON THE AIDS TEST THIS FALL THAT IS CRITICAL OF THE ROLES OF ABBOTT AND THE RED CROSS IN ADDITION SEVERAL LAWSUITS HAVE BEEN FILED AGAINST ABBOTT AND AT LEAST ONE AGAINST THE RED CROSS BY PEOPLE WHO CLAIM THEY GOT THE VIRUS THROUGH BLOOD TRANSFUSIONS ONE SUCH CASE FILED IN COOK COUNTY ILL CIRCUIT COURT EARLIER THIS YEAR TELLS OF A BOY WHO GOT A BLOOD TRANSFUSION IN 1985 AND ONLY LAST YEAR DISCOVERED HE HAS THE AIDS VIRUS THE LAWSUIT WHICH DOESN'T NAME THE YOUTH CLAIMS ABBOTT DID NOT ADEQUATELY WARN PEOPLE THEY COULD GET AIDS THROUGH BLOOD TRANSFUSIONS ABBOTT SAYS ITS TEST PACKAGE INSERTS MADE CLEAR THAT NOT ALL INCIPIENT AIDS VIRUS IN BLOOD SAMPLES COULD BE DETECTED AT THE TIME EVEN CURRENT TESTS DON'T ALWAYS DETECT THE VIRUS IN ITS EARLY STAGES BUT ONES USED TODAY INCLUDING THOSE OF ABBOTT ARE MUCH MORE PRECISE THAN THE EARLIER ONES THE CONGRESSIONAL INQUIRY TURNED UP INTERNAL DOCUMENTS FROM ABBOTT AND THE RED CROSS THAT DISCLOSE A FIERCE INTERNAL DEBATE SIMMERED IN 1986 AT THE RED CROSS OVER WHETHER TO DROP THE ABBOTT BLOOD TEST ULTIMATELY THE CHARITY DECIDED AGAINST DROPPING THE TEST FURTHER THE DOCUMENTS SHOW STAFFERS AT THE FOOD AND DRUG ADMINISTRATION BECAME INCREASINGLY ANGRY DURING THE LATTER HALF OF 1986 THAT ABBOTT HADN'T IMPROVED ITS TEST BY JANUARY 1987 ABBOTT INTRODUCED A REFINED AIDS BLOOD TEST THAT DETECTED EARLY CASES OF VIRUS MORE EFFECTIVELY THAN HAD THE OLD TEST THE RED CROSS IMMEDIATELY ADOPTED THAT VERSION AND TODAY CONTINUES TO USE AN ABBOTT TEST AS DO ABOUT THREEFOURTHS OF THE NATION'S BLOOD BANKS AND HOSPITALS THE DINGELL SUBCOMMITTEE HAS BEEN LOOKING INTO THE ISSUE FOR MORE THAN A YEAR THE INQUIRY FOLLOWED AN ARTICLE IN THE CHICAGO TRIBUNE DISCUSSING THE EARLY AIDS TESTS' PROBLEM OF FALSE NEGATIVES CONTAMINATED BLOOD IN WHICH VIRUS WAS UNDETECTED THE MOST POWERFUL DATA CONCERNING FALSE NEGATIVES EMERGED MAY 14 1986 WHEN ALFRED J SAAH OF THE JOHNS HOPKINS SCHOOL OF HYGIENE AND PUBLIC HEALTH AND OTHER RESEARCHERS PRESENTED INFORMATION TO THE US PUBLIC HEALTH SERVICE THE DATA SHOWED THAT OF 30 BLOOD SAMPLES FROM DONORS LATER VERIFIED TO HAVE THE AIDS VIRUS ABBOTT'S TEST CORRECTLY IDENTIFIED ONLY 13 BY CONTRAST THOSE OF TWO COMPETITORS GENETIC SYSTEMS INC AND DUPONT CO EACH IDENTIFIED 25 RED CROSS EXECUTIVES NOW SAY THEY WERE WELL AWARE OF SUCH EVIDENCE BUT WERE CONCERNED THAT THE COSTS BOTH MEDICALLY AND FINANCIALLY OF TRYING TO SWITCH TO A DIFFERENT TEST WERE TOO GREAT THEY DECIDED TO GIVE ABBOTT TIME TO FIX ITS EXISTING TEST ALSO THE FDA CONSIDERED BUT REJECTED THE IDEA OF PULLING THE ABBOTT TEST OFF THE MARKET AT THE TIME THOMAS ZUCK THEN FDA DIRECTOR OF BLOOD PRODUCTS SAYS WE THOUGHT WE MIGHT SCREW UP MORE TESTS BY INSISTING ON SWITCHING TO ANOTHER SYSTEM WE THOUGHT ABBOTT WOULD HAVE ITS TEST FIXED BY MIDFALL THOUGH IT TOOK A FEW MONTHS LONGER ABBOTT SAID IN A LETTER TO REP DINGELL THERE WAS NO EVIDENCE THAT ANY COMMERCIALLY AVAILABLE TEST WAS SUPERIOR TO THE ABBOTT TEST ON A CONSISTENT BASIS THE DECISION WAS MADE TO STAY WITH ABBOTT NOT BECAUSE IT WAS WONDERFUL BUT BECAUSE IT WASN'T ALL THAT MUCH WORSE THAN OTHER TESTS SAYS JAMES LANDMARK AN OMAHA PATHOLOGIST WHO THEN HEADED THE RED CROSS BOARD OF BLOOD CENTER DIRECTORS DR LANDMARK SAYS THE RED CROSS WAS CONCERNED THAT WEEKS OF TRAINING AND EXTENSIVE NEW EQUIPMENT WOULD BE REQUIRED FOR A NEW TEST SUCH A SWITCH MIGHT HAVE CREATED MORE MISTAKES THAN IT AVOIDED HE SAID WITHIN THE RED CROSS DURING THE SUMMER OF 1986 AT LEAST ONE TOP PHYSICIAN WARNED THE ORGANIZATION'S NATIONAL OFFICE THAT IT COULD FACE SEVERE DANGERS BY CONTINUING WITH THE ABBOTT TEST ON AUG 6 PETER A TOMASULO THE DOCTOR THEN IN CHARGE OF BLOOD DONATIONS TO THE RED CROSS IN SOUTH FLORIDA STRONGLY RECOMMENDED THAT ABBOTT'S TEST BE DROPPED IT IS NOT IMPOSSIBLE THAT WITHIN THE NEXT MONTH WE WILL RUN ACROSS ANOTHER BLOOD DONOR WITH THE VIRUS WHOSE BLOOD TESTED NEGATIVE DR TOMASULO WROTE IN A LETTER TO DR LANDMARK WE KNOW WE HAVE A BETTER CHANCE OF DETECTING SUCH AN INDIVIDUAL BY USING THE GENETIC SYSTEMS TEST DR TOMASULO WROTE DR TOMASULO NOW THE RED CROSS CHIEF OPERATING OFFICER FOR BLOOD SERVICES IN THE GROUP'S NATIONAL OFFICE IN WASHINGTON SAYS HE HAS SINCE CONCLUDED THAT THE RED CROSS'S DECISION TO STICK WITH ABBOTT WAS CORRECT THE POTENTIAL FOR ERROR GOES UP WHEN YOU SWITCH HE SAYS RED CROSS OFFICIALS DEBATED THE ISSUE INTERNALLY THROUGHOUT THE SUMMER AND FALL OF 1986 MINUTES OF A NOV 1 MEETING OF THE RED CROSS BOARD OF BLOOD CENTER DIRECTORS SHOW THAT ITS LAWYERS ADVISED THE GROUP IT COULD WAIT NO LONGER BEFORE UTILIZING A TEST WITH INCREASED SENSITIVITY IN DETECTING THE VIRUS BUT ONE OF THE BOARD MEMBERS RESPONDED THAT NO BLOOD CENTER WOULD BE LIKELY TO BE HELD NEGLIGENT FOR USING AN FDA APPROVED PROCEDURE EVEN IF OTHER PROCEDURES WERE CLAIMED TO BE MORE SENSITIVE SENSITIVITY REFERS TO A TEST'S ABILITY TO ACCURATELY DETECT VIRUS WHEN PRESENT ALSO THROUGHOUT 1986 FDA OFFICIALS BECAME ANGRIER AS ABBOTT FAILED TO PRODUCE AN IMPROVED TEST ABBOTT DOCUMENTS SHOW THAT THE FDA'S DR ZUCK BECAME IRATE TELLING ABBOTT OFFICIALS IN DECEMBER WE TOLD YOU LAST APRIL YOU HAD A SENSITIVITY PROBLEM AND THAT MOST ABBOTT OFFICIALS WOULDN'T LISTEN AT ONE POINT ABBOTT DOCUMENTS SHOW HE TOLD ABBOTT THAT IT DIDN'T MAKE GOOD PRODUCTS AND WAS IN EFFECT MIXING SAWDUST WITH THE SAUSAGE DR ZUCK WHO HAS SINCE PERFORMED CONSULTING WORK FOR ABBOTT DESCRIBES THESE EARLIER REMARKS AS HYPERBOLE INTENDED TO SPUR ABBOTT TOWARD A NEW TEST 9306280092 930628 BUSINESS BRIEF AMP INC QUARTER'S EARNINGS ARE SEEN AT LOW END OF EXPECTATIONS ELECTRICAL AND ELECTRONIC CONNECTORS MAKER AMP INC SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE AT THE LOW END OF EXPECTATIONS BECAUSE OF MODEST DECREASES IN BUSINESS IN EUROPE AND JAPAN AMP OF HARRISBURG PA SAID EARNINGS WILL BE IN THE LOWER PART OF THE 70 TO 75CENTASHARE RANGE PREDICTED BY ANALYSTS THE COMPANY ALSO PREDICTED SECONDQUARTER SALES WILL BE AT THE LOWER END OF ANALYSTS' ESTIMATES OF 875 MILLION TO 890 MILLION THE COMPANY POSTED NET INCOME OF 68 CENTS A SHARE A YEAR AGO ON SALES OF 827 MILLION AMP SAID IT EXPECTS THE THIRD QUARTER TO BE SIMILAR IN SALES TO THE SECOND QUARTER AND SLIGHTLY BETTER IN EARNINGS AMP SAID IT EXPECTS ITS PROFIT MARGINS TO IMPROVE GRADUALLY THIS YEAR AND NEXT THE COMPANY SAID THAT DESPITE THE SLUMP IN EUROPE AND JAPAN IT IS EXPERIENCING GOOD BROADBASED GROWTH IN THE US AND STRONG GROWTH IN ASIAN COUNTRIES OTHER THAN JAPAN 9306280091 930628 BUSINESS BRIEF PPG INDUSTRIES INC COMPANY PLANS TO CLOSE FACILITY AT GREENSBURG PA PPG INDUSTRIES INC SAID IT WILL CLOSE BY YEAR END ITS GREENSBURG PA AUTO REPLACEMENT WINDSHIELD PLANT WHERE WORKERS HAVE BEEN ON STRIKE SINCE MAY 8 THE PITTSBURGH GLASS MAKER SAID 320 POSITIONS WOULD BE ELIMINATED ALTHOUGH SOME OF THOSE EMPLOYEES HAD BEEN LAID OFF BEFORE THE STRIKE BEGAN THE COMPANY SAID THE SHUTDOWN WAS UNRELATED TO THE CONTRACT DISPUTE IN WHICH THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL LOCAL 168 WALKED OFF THE JOB AFTER PPG IMPLEMENTED TERMS OF ITS FINAL CONTRACT OFFER THE PLANT HAS BEEN AT RISK FOR SOME TIME ROBERT D DUNCAN GROUP VICE PRESIDENT OF GLASS SAID NOTING THAT ITS COMPETITIVENESS HAS DETERIORATED IN A DIFFICULT REPLACEMENT WINDSHIELD BUSINESS ENVIRONMENT INCLUDING LOWERCOST COMPETITORS AND INDUSTRY OVERCAPACITY UNION OFFICIALS COULDN'T BE REACHED FOR COMMENT 9306280090 930628 BUSINESS BRIEF WINNEBAGO INDUSTRIES INC MOTOR HOME MAKER BOOSTED PRODUCTION BY 11 IN JUNE WINNEBAGO INDUSTRIES INC CITING STEADY INCREASES IN THE SALES OF ALMOST ALL OUR MODELS SAID IT INCREASED PRODUCTION OF ITS MOTOR HOMES 11 IN JUNE WINNEBAGO WHICH IN MARCH SIMILARLY BOOSTED OUTPUT IS AT THE HIGHEST LEVEL OF PRODUCTION SINCE 1989 AN OFFICIAL SAID WINNEBAGO DECLINED TO DISCLOSE UNIT VOLUME FOR THE COMPANY BUT ACCORDING TO STATISTICAL SURVEYS INC OF GRAND RAPIDS MICH WINNEBAGO SOLD 1421 UNITS OF ITS TRADITIONAL FULLSIZE MOTOR HOMES IN THE FIRST FOUR MONTHS OF CALENDAR 1993 UP FROM 1036 FOR THE PREVIOUSYEAR PERIOD THOSE MODELS REPRESENT ABOUT 71 OF THE FOREST CITY IOWA COMPANY'S SALES THE STRENGTHENING MARKET HELPED WINNEBAGO REPORT NET INCOME FOR THE NINE MONTHS ENDED MAY 29 OF 61 MILLION OR 24 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS FROM CONTINUING OPERATIONS OF 45 MILLION OR 18 CENTS A SHARE 9306280089 930628 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION JACK ECKERD CORP AN INITIAL OFFERING OF 45 MILLION COMMON SHARES LOTTERY ENTERPRISES INC AN INITIAL OFFERING OF 35 MILLION SHARES TURNER BROADCASTING SYSTEM INC AN OFFERING OF UP TO 300 MILLION OF SENIOR NOTES DUE 2013 UNIVERSAL ELECTRONICS INC AN OFFERING OF 175 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND RAYMOND JAMES & ASSOCIATES INC 9306280088 930628 BUSINESS BRIEF UNITED GAMING INC KIRKLAND GAMING SYSTEMS AGREE TO DEVELOP VENTURES UNITED GAMING INC LAS VEGAS SAID IT ENTERED INTO AGREEMENTS WITH KIRKLANDFORT WORTH INVESTMENT PARTNERS LP AND GAMING SYSTEMS ADVISORS LP TO JOINTLY DEVELOP GAMING VENTURES AND ATTRACT INVESTMENT CAPITAL UNDER THE AGREEMENT KIRKLAND RECEIVED AN OPTION TO INVEST AS MUCH AS 5 MILLION IN UNITED GAMING FOR AS MANY AS 13 MILLION COMMON SHARES AND 275 MILLION WARRANTS TO PURCHASE ADDITIONAL RESTRICTED SHARES BASED ON STOCK PRICE APPRECIATION GAMING SYSTEMS WILL RECEIVE 375 MILLION WARRANTS CONTINGENT ON STOCK PRICE APPRECIATION INVESTMENT OPPORTUNITIES AND RAISED CAPITAL UNITED GAMING WILL RECEIVE CAPITAL FROM INVESTORS INCLUDING DALLAS FINANCIER RICHARD RAINWATER A GENERAL PARTNER OF KIRKLAND 9306280087 930628 BUSINESS BRIEF ANCHOR BANCORP INC ACCORD REACHED WITH FDIC TO BUY BACK PREFERRED STOCK ANCHOR BANCORP INC SAID IT REACHED AN AGREEMENT WITH THE FEDERAL DEPOSIT INSURANCE CORP FOR ANCHOR TO BUY BACK 157 MILLION OF ITS CLASS A CUMULATIVE PREFERRED STOCK HELD BY THE FSLIC RESOLUTION FUND THE HEWLETT NY BANKING CONCERN WHICH IS PARENT TO ANCHOR SAVINGS BANK FSB SAID THE AGREEMENT ALSO PROVIDES FOR THE ELIMINATION OF ALL ACCUMULATED BUT UNDECLARED AND UNPAID DIVIDENDS WHICH AMOUNTED TO 446 MILLION ANCHOR PREVIOUSLY HAD ANNOUNCED THAT IT HAD EXECUTED A LETTER OF INTENT WITH THE FDIC WHICH MANAGES THE RESOLUTION FUND REGARDING THE TRANSACTION ANCHOR SAID THAT IN EXCHANGE FOR THE PREFERRED STOCK AND THE ELIMINATION OF THE 446 MILLION IN DIVIDENDS TO MARCH 31 IT WILL ISSUE TO THE FDIC 71 MILLION IN SUBORDINATED DEBENTURES WITH A 10YEAR MATURITY AND MARKET TERMS THAT ARE YET TO BE NEGOTIATED ANCHOR ALSO WILL ISSUE TO THE FDIC 10YEAR WARRANTS TO EXERCISE BETWEEN 45 MILLION AND 48 MILLION COMMON SHARES AT AN EXERCISE PRICE OF ONE CENT A SHARE 9306280086 930628 WHO'S NEWS LESSIN LEAVES MORGAN STANLEY TO LEAD INVESTMENT BANKING AT SMITH BARNEY BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW CHIEF EXECUTIVE OF SMITH BARNEY SHEARSON INC ROBERT GREENHILL MOVED QUICKLY TO BUILD THE FIRM'S DEALMAKING CAPACITY BY HIRING ROBERT LESSIN AS HEAD OF INVESTMENT BANKING MR LESSIN 38 YEARS OLD WAS ONE OF MR GREENHILL'S TOP LIEUTENANTS AT MORGAN STANLEY GROUP INC WHICH MR GREENHILL LEFT ON THURSDAY AFTER A 31YEAR CAREER THERE MR LESSIN AND MR GREENHILL SAY THEY HOPE TO BUILD AN INVESTMENT BANKING ORGANIZATION THAT CAN COME UP WITH ENOUGH STOCK AND BOND OFFERINGS TO FEED THE FIRM'S GIANT ORGANIZATION OF 10500 RETAIL BROKERS THE NEED IS PARTICULARLY ACUTE WHILE THE STOCK MARKET IS TRADING NEAR RECORD LEVELS AND DEMAND FOR NEW ISSUES IS ROBUST 'A MANDATE TO BUILD' THERE IS A MANDATE TO BUILD THIS IN A FAIRLY DRAMATIC FASHION SAYS MR LESSIN THE VISION GOES BEYOND BEING JUST ANOTHER BULGEBRACKET FIRM HE SAYS REFERRING TO THE SIX LEADING WALL STREET SECURITIES FIRMS THAT DOMINATE STOCK AND BOND UNDERWRITING UNLIKE MORGAN STANLEY SMITH BARNEY CURRENTLY DOESN'T RANK AMONG THE TOP UNDERWRITERS OR MERGER ADVISERS MR LESSIN HEADED MORGAN STANLEY'S TRANSACTION DEVELOPMENT GROUP DURING THE MERGER BOOM YEARS FROM 1985 TO 1990 BEFORE THAT HE FORMED THE FIRM'S EUROPEAN MERGERS AND ACQUISITIONS GROUP IN LONDON IN 1983 MOST RECENTLY HE HEADED THREE GROUPS RESPONSIBLE FOR DEALING WITH BUYOUT FUNDS RETAILING CONCERNS AND MEDIA COMPANIES MR LESSIN SUCCEEDS LEWIS GLUCKSMAN A TRADER BEST KNOWN FOR HEADING LEHMAN BROTHERS JUST BEFORE THAT FIRM WAS SOLD IN THE MID1980S MR GLUCKSMAN REMAINS A SENIOR ADVISER TO THE FIRM WHICH IS A UNIT OF PRIMERICA CORP MR GREENHILL SAYS HE WANTS TO STRENGTHEN FIXEDINCOME AND HIGHYIELD AREAS AND HE SAYS HIS NEW HIRES WON'T ALL COME FROM MORGAN STANLEY I'M NOT RAIDING MORGAN STANLEY PEOPLE ARE FREE TO GO WHERE THEY LIKE HE SAYS A SPOKESWOMAN FOR MORGAN STANLEY DECLINED TO COMMENT HENRY KRAVIS ONE OF WALL STREET'S BIGGEST DEAL GENERATORS SAYS THE ARRIVAL OF BOTH MR LESSIN AND MR GREENHILL PUTS SMITH BARNEY SHEARSON IN THE RUNNING FOR BUSINESS FROM MR KRAVIS'S BUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO WE'VE HAD NO REAL RELATIONSHIP WITH SMITH BARNEY BUT WITH THE DISTRIBUTION CLOUT THEY HAVE PLUS THE STRENGTH THEY SEEM TO BE BUILDING IN INVESTMENT BANKING WE'LL CERTAINLY TAKE THEM SERIOUSLY SAYS MR KRAVIS HE CALLS MR LESSIN ONE OF THE MOST CREATIVE AND TALENTED INVESTMENT BANKERS ON WALL STREET HE COMES UP WITH IDEAS FOR US ALL THE TIME AND HE SAYS MR GREENHILL DID AS GOOD A JOB AS HE COULD HAVE ON A PROPOSED 17 BILLION OFFERING OF STOCK TIED TO THE NABISCO FOOD BUSINESS OF RJR NABISCO HOLDINGS INC THAT WAS SCUTTLED LAST WEEK OTHER FIRMS WITH BIG RETAIL SALES FORCES HAVE TRIED WITH MIXED RESULTS TO BUILD UP THEIR INVESTMENT BANKING BY HIRING TOP BANKERS MERRILL LYNCH & CO HAS BEEN ABLE TO CRACK THE TOP TIER OF WALL STREET UNDERWRITERS BUT OTHERS INCLUDING THE KIDDER PEABODY & CO UNIT OF GENERAL ELECTRIC CORP THE PRUDENTIALBACHE SECURITIES INC UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA AND PAINEWEBBER INC HAVEN'T FARED AS WELL 9306280085 930628 BUSINESS BRIEF CARMIKE CINEMAS INC COMPANY TO BUY WESTWYNN A CHAIN OF MOVIE THEATERS CARMIKE CINEMAS INC WHICH OPERATES MOVIE THEATERS SAID IT ENTERED INTO A LETTER OF INTENT TO BUY WESTWYNN THEATERS INC A CHICAGOBASED CHAIN OF 95 SMALLTOWN MIDWESTERN THEATERS IN A DEAL VALUED AT 70 MILLION CARMIKE OF COLUMBUS GA SAID IT WILL PURCHASE THE CHAIN FROM CITICORP VENTURE CAPITAL AN INVESTMENT UNIT OF CITICORP AND WILLIAM BLAIR VENTURE PARTNERS A CLOSELY HELD INVESTMENT CONCERN IN CHICAGO CARMIKE WILL ACQUIRE WESTWYNN FOR 330000 CARMIKE COMMON SHARES AND 4 MILLION OF SUBORDINATED NOTES WHICH ARE CONVERTIBLE INTO 100000 CARMIKE SHARES CARMIKE HAD BEEN PAID 15 MILLION A YEAR TO MANAGE THE CHAIN SINCE 1991 9306280084 930628 BUSINESS BRIEF MATRAHACHETTE SA COMPANY SAYS 1993 EARNINGS WILL BE UP SIGNIFICANTLY' FRENCH COMPANY MATRAHACHETTE SA REAFFIRMED FRIDAY THAT IT EXPECTS NET PROFIT TO BE UP SIGNIFICANTLY THIS YEAR FROM THE 354 MILLION FRANCS 62 MILLION POSTED IN 1992 JEANLUC LAGARDERE CHAIRMAN TOLD SHAREHOLDERS HE EXPECTS THE GROUP'S SPACE TRANSPORT AND BOOK PUBLISHING ACTIVITIES TO SHOW THE STRONGEST PROFIT RISES AT THE OPERATING LEVEL OFFSETTING WEAKER RESULTS IN TELECOMMUNICATIONS AND MAGAZINE PUBLISHING HE ADDED THAT THE BOTTOMLINE RESULT WILL ALSO BENEFIT FROM A CONTINUED DECLINE IN FINANCIAL CHARGES AND AMORTIZATION OF GOODWILL MR LAGARDERE STRESSED THAT EACH OF THE GROUP'S NINE DIVISIONS WILL SHOW A PROFIT THIS YEAR INCLUDING THE TRANSPORT OPERATIONS WHICH POSTED AN OPERATING LOSS OF 158 MILLION FRANCS IN 1992 9306280083 930628 WHO'S NEWS NALCO CHEMICAL CO NALCO CHEMICAL CO NAPERVILLE ILL DAVID R BERTRAN 50 YEARS OLD FORMERLY VICE PRESIDENT MANUFACTURING AND LOGISTICS WAS NAMED SENIOR VICE PRESIDENT MANUFACTURING AND LOGISTICS OF THIS CHEMICAL CONCERN 9306280082 930628 BUSINESS BRIEF CASIO COMPUTER CO PRODUCTION TO SHIFT OVERSEAS AS A RESULT OF STRONGER YEN CASIO COMPUTER CO TOKYO WILL START SHIFTING PRODUCTION OF ELECTRONIC MUSICAL INSTRUMENTS TO OVERSEAS PLANTS FROM MID1993 TO COPE WITH THE STRENGTHENING YEN A SPOKESMAN FOR THE JAPANESE DIGITAL WATCH AND ELECTRONICS CONCERN SAID FRIDAY THE SPOKESMAN DECLINED TO PROVIDE MANY SPECIFICS BUT SAID THE COMPANY WILL SUBSTANTIALLY INCREASE US PRODUCTION OF MIDRANGE ELECTRONIC KEYBOARDS THOSE SELLING FOR BETWEEN 20000 YEN 184 AND 50000 YEN HE SAID CASIO IS STEPPING UP CAPITAL INVESTMENT IN EQUIPMENT IN THE US TO MEET THE INCREASED PRODUCTION DEMANDS THE SPOKESMAN SAID THE COMPANY WILL TRANSFER TO A GROUP FACTORY IN THAILAND RESPONSIBILITY FOR THE OUTPUT OF LOWRANGE UNITS THOSE THAT SELL FOR LESS THAN 20000 YEN WHILE JAPAN WILL CONTINUE TO PRODUCE HIGHVALUEADDED TOPRANGE UNITS THE STRENGTH OF THE YEN EATS INTO PROFIT MARGINS ON EXPORTS FROM JAPAN SO JAPANESE MANUFACTURERS ARE INCREASINGLY MOVING MANUFACTURING OPERATIONS ABROAD 9306280081 930628 WHO'S NEWS VIROGROUP INC VIROGROUP INC CORAL GABLES FLA THIS ENVIRONMENTAL AND WASTEMANAGEMENT CONCERN ELECTED TWO DIRECTORS EXPANDING ITS BOARD TO 11 MEMBERS THEY ARE WILLIAM E STILWELL JR 49YEAROLD PRESIDENT OF LAIDLAW ENVIRONMENTAL SERVICES AND WILLIAM D RIDINGS 48 A LAIDLAW VICE PRESIDENT AND CONTROLLER 9306280080 930628 THE SENATE'S TAX PACKAGE FEDERAL RETIREES WILL FEEL PINCH OF DEFICIT CUTS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TAXES AREN'T THE ONLY POLITICAL TABOO THAT CONGRESSIONAL DEMOCRATS CONFRONT IN BACKING PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM THEY'RE ALSO PROPOSING TO CUT SPENDING ON RETIREES THE BESTKNOWN CUTS AFFECTING THE ELDERLY ARE THE REDUCTIONS IN MEDICARE 58 BILLION OVER FIVE YEARS IN THE SENATE PASSED PLAN AND ABOUT 50 BILLION IN THE HOUSE VERSION MOREOVER DEMOCRATS ARE RAISING TAXES ON UPPERINCOME SOCIAL SECURITY RECIPIENTS AND CALLING IT A SPENDING CUT BUT AS THEY GROPED FOR ADDITIONAL CUTS TO ACHIEVE THE PRESIDENT'S 500 BILLION DEFICITREDUCTION GOAL LAWMAKERS DECIDED AGAINST THEIR POLITICAL INSTINCTS TO LEAN ON FEDERAL RETIREES AS WELL THAT'S A MAJOR STEP SAID ADMINISTRATION BUDGET DIRECTOR LEON PANETTA WHO AS A HOUSE MEMBER WATCHED CONGRESS REPEATEDLY SHY AWAY FROM TAKING ON THE POTENT SENIOR CITIZENS' LOBBY THUS MILITARY RETIREES ARE LIKELY TO SEE THEIR ANNUAL COSTOFLIVING INCREASES DELAYED OVER THE NEXT FEW YEARS THE SENATE FOR EXAMPLE WOULD POSTPONE COSTOFLIVING ADJUSTMENTS UNTIL OCT 1 FROM JAN 1 IN FISCAL YEARS 1994 THROUGH 1997 AND UNTIL SEPT 1 IN 1998 SAVING A TOTAL OF 26 BILLION THE HOUSE HAS VOTED TO SAVE 23 BILLION BY DELAYING THE INCREASE BY FOUR MONTHS IN FISCAL 1994 AND THREE MONTHS EACH IN YEARS 1995 THROUGH 1998 FEDERAL CIVILIAN AND FOREIGNSERVICE RETIREES WOULD TAKE A SOMEWHAT SMALLER HIT AS THE HOUSE AND SENATE BOTH VOTED TO POSTPONE THEIR COSTOFLIVING ADJUSTMENTS BY THREE MONTHS IN THE YEARS 1994 THROUGH 1996 BOTH CHAMBERS WOULD ALSO DO AWAY WITH ALLOWING FEDERAL RETIREES TO TAKE THEIR RETIREMENT BENEFITS IN A LUMP SUM EXCEPT FOR THOSE WITH CRITICAL MEDICAL CONDITIONS EVEN VETERANS WOULD FEEL THE PINCH THE SENATE WOULD SCRIMP 148 MILLION OVER FIVE YEARS BY ROUNDING INFLATION ADJUSTMENTS FOR VETERANS' DISABILITY AND SURVIVORS' BENEFITS DOWN TO THE NEXT LOWEST DOLLAR AND PUSH THOSE ADJUSTMENTS BACK BY THREE DAYS TO DEC 4 1993 FROM DEC 1 BOTH CHAMBERS WOULD ALSO SAVE ABOUT 650 MILLION BY INCREASING TO 2 FROM 125 THE FEE THAT BORROWERS PAY FOR HOME LOANS GUARANTEED BY THE VETERANS ADMINISTRATION SUCH SMALLBORE SAVINGS ARE SPRINKLED THROUGHOUT THE LEGISLATION THAT BOTH CHAMBERS HAVE PASSED TO IMPLEMENT THE ADMINISTRATION'S BUDGET GOALS DIFFERENCES BETWEEN THE TWO MUST BE RESOLVED IN CONFERENCE COMMITTEE NEGOTIATIONS THAT BEGIN NEXT MONTH AMONG THE HIGHLIGHTS AGRICULTURE BOTH CHAMBERS WOULD CUT FARM SUBSIDIES ABOUT 3 BILLION OVER FIVE YEARS BOTH WOULD PRESERVE IN REDUCED FORM THE ONE PROGRAM THAT CANDIDATE BILL CLINTON TARGETED FOR ELIMINATION DURING HIS PRESIDENTIAL CAMPAIGN THE FEDERAL HONEY SUBSIDY BANKING BOTH CHAMBERS WOULD SAVE 750 MILLION OVER FIVE YEARS BY GIVING UNINSURED DEPOSITORS PREFERENCE OVER GENERAL CREDITORS AND SHAREHOLDERS IN THE LIQUIDATION OF FAILED BANKS AND THRIFTS LAWMAKERS ALSO PLAN TO SAVE 1 BILLION IN FIVE YEARS BY LETTING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT USE INTERNAL REVENUE SERVICE DATA TO VERIFY THE ELIGIBILITY OF APPLICANTS FOR ASSISTED HOUSING COMMERCE BOTH CHAMBERS WOULD RAISE 72 BILLION IN FIVE YEARS BY REQUIRING THE FEDERAL COMMUNICATIONS COMMISSION TO AUCTION LICENSES TO USE THE RADIO FREQUENCY SPECTRUM EDUCATION BOTH CHAMBERS WOULD SAVE 42 BILLION IN FIVE YEARS BY REPLACING FEDERALLY GUARANTEED STUDENT LOANS WITH DIRECT LENDING TO STUDENTS NATURAL RESOURCES BOTH CHAMBERS WOULD RAISE ABOUT 300 MILLION BY CHARGING ADDITIONAL FEES FOR COMMERCIAL TOURS AT NATIONAL PARKS AND FOR USE OF OTHER FEDERALLY OPERATED FACILITIES THEY'RE ALSO SEEKING ADDITIONAL FEES ON THOSE HOLDING HARDROCK MINING CLAIMS ON FEDERAL LANDS ENVIRONMENT BOTH CHAMBERS WOULD RAISE 1 BILLION OVER FIVE YEARS BY EXTENDING FEES CHARGED TO NUCLEAR UTILITIES TO OFFSET THE COST OF THE NUCLEAR REGULATORY COMMISSION JUDICIARY BOTH CHAMBERS WOULD RAISE 345 MILLION IN FIVE YEARS BY EXTENDING AN EXISTING SURCHARGE ON PATENT FEES THE BIGGEST CHUNK OF SAVINGS CALLED FOR IN THE DEMOCRATS' PACKAGE SOME 102 BILLION IN DISCRETIONARY SPENDING CUTS IN FIVE YEARS WASN'T IN THE RECONCILIATION BILL PASSED BY THE SENATE LAST WEEK THOSE SAVINGS WHICH AREN'T SPECIFIED BUT ARE EXPECTED TO FALL HEAVILY ON THE PENTAGON ARE CALLED FOR IN THE BUDGET RESOLUTION THAT PASSED BOTH CHAMBERS THIS YEAR BUT THE RECONCILIATION BILL DID CONTAIN A PROVISION TO ENFORCE THOSE SAVINGS THROUGH 1998 BY REQUIRING AUTOMATIC OFFSETTING CUTS IN DISCRETIONARY PROGRAMS IF THE GOVERNMENT EXCEEDS PRESCRIBED SPENDING CAPS REPUBLICANS MAINTAIN THE CAPS WOULD PROVE TOOTHLESS BECAUSE CONGRESS CAN STILL EXCEED THEM FOR DECLARED EMERGENCIES STILL BUDGET ANALYSTS GENERALLY BELIEVE THAT THE CAPS FIRST INSTITUTED IN THE 1990 BUDGET DEAL HAVE WORKED REASONABLY WELL SO FAR AND BUDGET DIRECTOR PANETTA NOTED THEY WON'T PROVIDE MUCH LEEWAY FOR EITHER THE ADMINISTRATION OR CONGRESSIONAL APPROPRIATORS AS THEY STRUGGLE TO FINANCE MR CLINTON'S PROPOSED INVESTMENT SPENDING AND EXISTING PROGRAMS A LOT OF PEOPLE HAVEN'T REALIZED THAT YET MR PANETTA SAID BUT THEY WILL VERY SOON THE BUDGET DIRECTOR SENT A LETTER TO ALL CABINET AGENCIES WARNING THAT TO MAKE ROOM FOR THE PRESIDENT'S INVESTMENT PRIORITIES OTHER DISCRETIONARY SPENDING MUST BE CUT AN AVERAGE OF 10 IN FISCAL 1995 WHICH BEGINS OCT 1 1994 INDEED PLANNING FOR THE 1995 BUDGET IS BEGINNING EVEN BEFORE THE 1994 BUDGET IS THROUGH CONGRESS THE DISCRETIONARY CEILING FOR 1995 MR PANETTA NOTED IS 136 BILLION BELOW THE OUTLAYS PROJECTED FOR 1995 IN THE PRESIDENT'S BUDGET 9306280079 930628 BUSINESS BRIEF KAWASAKI KISEN KAISHA SHIPPING COMPANY REGISTERS 12 DROP IN PRETAX PROFIT KAWASAKI KISEN KAISHA A MAJOR JAPANESE SHIPPING COMPANY SAID CONSOLIDATED PRETAX PROFIT FELL 12 TO 250 BILLION YEN 23 MILLION IN THE YEAR ENDED MARCH 31 ON REVENUE OF 49884 BILLION YEN KAWASAKI KISEN DECLINED TO ISSUE CONSOLIDATED EARNINGS PREDICTIONS FOR THE CURRENT YEAR ENDING MARCH 31 1994 AN OFFICIAL IN THE COMPANY'S ACCOUNTING DEPARTMENT SAID THE SAME CONDITIONS AFFLICTING JAPAN'S ENTIRE SHIPPING INDUSTRY ALSO DRAGGED ON HIS COMPANY'S EARNINGS IN THE RECENT YEAR SLUGGISH WORLD TRADE AMID THE GLOBAL ECONOMIC SLOWDOWN ALONG WITH TIGHT COMPETITION AMONG THE WORLD'S SHIPPERS FOR CARGO 9306280078 930628 BUSINESS BRIEF TWO PESOS INC HOLDERS APPROVE PLAN TO SELL RESTAURANTS TO TACO CABANA TWO PESOS INC OF HOUSTON SAID ITS SHAREHOLDERS APPROVED A PLAN TO SELL ITS 31 COMPANYOWNED MEXICANSTYLE RESTAURANTS TO COMPETITOR TACO CABANA INC SAN ANTONIO THE COMPANY SAID IT EXPECTS TO COMPLETE THE PREVIOUSLY ANNOUNCED SALE BY WEDNESDAY TWO PESOS SHAREHOLDERS WILL RECEIVE ABOUT 186 MILLION IN TACO CABANA COMMON STOCK OR A MINIMUM OF ONE TACO CABANA SHARE FOR EACH 10 TWO PESOS SHARES THE COMPANY SAID TWO PESOS HAD ABOUT 81 MILLION SHARES OUTSTANDING FRIDAY SOME 10 OF THE TACO CABANA SHARES WILL BE RETAINED BY A LIQUIDATING TRUST TO SATISFY ANY OUTSTANDING LIABILITIES THE COMPANY SAID TWO PESOS SAID IT EXPECTS TO SELL ITS REMAINING OPERATIONS WHICH CONSIST OF FOUR SHORT STOP RESTAURANTS TO SOME OTHER BUYER SOON AFTER WHICH THE COMPANY WILL BE DISSOLVED 9306280076 930628 LETTERS TO THE EDITOR IF YOU DON'T LIKE HOLES DON'T LOOK FOR THEM AS A RETIRED WORKINGCLASS EARTH SCIENTIST I AM CONTINUALLY AMAZED AT THE ABILITY OF POLITICALLY ASTUTE HARVARD DEPARTMENT CHAIRMEN TO GET INTO PRINT WITH THEIR BALD UNSUBSTANTIATED ASSERTIONS I REFER TO THE PARAGRAPH FROM MICHAEL B MCELROY'S JUNE 17 LETTER THAT READS THERE IS A HOLE IN THE OZONE THAT AFFECTS 10 OF THE SOUTHERN HEMISPHERE EVERY YEAR IN THE SPRING IT APPEARED FIRST IN THE MID1970S THE RESULT OF REACTIONS TRIGGERED BY INDUSTRIAL CHLORINATED AND BROMINATED CHEMICALS HAD WE MOVED TO ELIMINATE THESE CHEMICALS 30 YEARS AGO THE HOLE NEVER WOULD HAVE APPEARED HOW WOULD PROF MCELROY TAKE THE FOLLOWING REWRITE OF HISTORY THERE WAS A NEW DEVELOPMENT IN 1492 THAT AFFECTS 50 OF THE EARTH'S SURFACE IT APPEARED FIRST AS THE RESULT OF THE EXPLORATIONS OF CHRISTOPHER COLUMBUS HAD WE MOVED TO ELIMINATE VOYAGES OF EXPLORATION NORTH AND SOUTH AMERICA NEVER WOULD HAVE APPEARED THE TRUTH OF THE MATTER IS THAT SCIENCE DISCOVERED THE HOLE EXISTED BY MAPPING GLOBAL OZONE IN THE 1970S FURTHERMORE SINCE ANTARCTICA DURING THE SOUTHERN WINTER IS A NATURAL OZONE SINK TO FIND AN OZONE HOLE OVER ANTARCTICA IS ABOUT LIKE FINDING SAND IN THE SAHARA I DON'T MEAN TO ARGUE THAT WE DISREGARD OUR ENVIRONMENT RATHER THAT INFLUENTIAL SCIENTISTS BE MORE CIRCUMSPECT IN THEIR PUBLIC STATEMENTS 9306280075 930628 BUSINESS BRIEF ROTHMANS INTERNATIONAL PLC RESTRUCTURING IS PROPOSED WITH BRITISH SWISS CONCERNS SHAREHOLDERS OF UK'S ROTHMANS INTERNATIONAL PLC AND DUNHILL HOLDINGS WILL RECEIVE 525 MILLION 7712 MILLION CASH IN A PLANNED THREEWAY RESTRUCTURING WITH SWISS CIE FINANCIERE RICHEMONT ROTHMANS SAID FRIDAY TRADING IN ROTHMANS AND DUNHILL WHICH WAS SUSPENDED WEDNESDAY RESUMED ON LONDON'S STOCK EXCHANGE FOLLOWING THE ANNOUNCEMENT THE THREE COMPANIES' TOBACCO AND LEATHERGOODS UNITS WILL BE MERGED INTO TWO NEW COMPANIES THAT WILL TRADE SEPARATELY THE NEW TOBACCO GROUP WILL RETAIN THE ROTHMANS NAME WHILE THE LEATHERGOODS COMPANY WILL BE CALLED VENDOME GROUP FOR EVERY 1000 ROTHMANS B ORDINARY SHARES SHAREHOLDERS WILL RECEIVE 1000 NEW ROTHMANS SHARES 500 VENDOME SHARES AND 757 1112 FOR EVERY 1000 ORDINARY DUNHILL SHARES SHAREHOLDERS WILL RECEIVE 133 NEW ROTHMANS SHARES 749 VENDOME SHARES AND 443 9306280074 930628 LAW LEGAL BEAT WELLCOME'S AZT MONOPOLY FACES TEST BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL BURROUGHS WELLCOME CO IS POISED FOR A COURT FIGHT TO DECIDE WHETHER AIDS PATIENTS SHOULD CONTINUE PAYING ITS HIGH PRICE FOR THE DRUG AZT OR BE ABLE TO GET THE TREATMENT MORE CHEAPLY FROM GENERICDRUG MAKERS THE TRIAL IN FEDERAL COURT IN NEW BERN NC PITS TWO GENERICDRUG COMPANIES AGAINST BURROUGHS WHICH HOLDS EXCLUSIVE US PATENTS ON AZT THE MOST WIDELY USED DRUG FOR ACQUIRED IMMUNE DEFICIENCY SYNDROME THE GENERIC COMPANIES BARR LABORATORIES INC AND NOVOPHARM INC WHICH HAVE SAID THEY WOULD SELL AZT AT MUCH LOWER PRICES CONTEND THAT BURROUGHS SHOULD SHARE LICENSING RIGHTS BECAUSE US GOVERNMENT SCIENTISTS WERE COINVENTORS OF THE AZT TREATMENT THE TRIAL WHICH IS EXPECTED TO LAST AS LONG AS SIX WEEKS CARRIES GREAT IMPLICATIONS FOR AIDS PATIENTS WHO NOW PAY AS MUCH AS 2500 A YEAR FOR AZT THE CASE MAY ALSO HELP RESOLVE SOME TOUGH LEGAL QUESTIONS ABOUT WHO GETS PATENT RIGHTS WHEN MANY SCIENTISTS CONTRIBUTE TO A DRUG'S DEVELOPMENT THE CASE IS BEING WATCHED CLOSELY BY LAWMAKERS WHO HAVE COMPLAINED THAT GOVERNMENT HEALTH PROGRAMS ARE FOOTING THE BILL FOR MANY PATIENTS WHO NEED THE MEDICINE BUT CAN'T AFFORD IT SOME LEGISLATORS SAY THE GOVERNMENT SHOULD BE SHARING IN THE PROFITS RATHER THAN PAYING HIGH PRICES FOR THE DRUG BECAUSE OF THE GOVERNMENT SCIENTISTS' ROLE IN DEVELOPING IT SINCE BURROUGHS BEGAN MARKETING AZT IN 1987 IT HAS COME UNDER HEAVY FIRE FROM AIDS ACTIVISTS AND LAWMAKERS WHO ACCUSE IT OF TAKING ADVANTAGE OF ITS EXCLUSIVE PATENTS BY CHARGING AIDS PATIENTS TOO MUCH THE COMPANY HAS TWICE LOWERED THE DRUG'S PRICE BY 20 IN ADDITION THE ANNUAL COST OF USING THE DRUG WAS HALVED IN EFFECT WHEN THE RECOMMENDED DOSAGE WAS REDUCED IN EARLY 1990 TO BETWEEN 500 AND 600 MILLIGRAMS A DAY FROM 1200 MILLIGRAMS ANALYSTS SAID BURROUGHS THE US UNIT OF BRITAIN'S WELLCOME PLC STANDS TO LOSE A SIZABLE PORTION OF ITS US SALES IF IT LOSES THE CASE LAST YEAR AZT ACCOUNTED FOR 195 MILLION OR ABOUT 15 OF BURROUGHS'S TOTAL US SALES ARVIND DESAI AN ANALYST WITH MEHTA & ISALY A HEALTHCARE RESEARCH FIRM IN NEW YORK SAID BURROUGHS'S DOMESTIC PRETAX SALES COULD FALL AS MUCH AS 50 MILLION WITHIN A YEAR OF THE GENERIC DRUGS' ENTRANCE INTO THE MARKET THE TRIAL WILL FOCUS ON WHETHER RESEARCHERS AT THE NATIONAL INSTITUTES OF HEALTH SHOULD BE NAMED COINVENTORS WITH BURROUGHS THEREBY GIVING NIH A RIGHT TO LICENSE THE DRUG EARLIER THIS MONTH THE JUDGE REJECTED AN EFFORT BY BURROUGHS TO THROW OUT THE CASE THE JUDGE SAID IN HIS RULING THAT A TRIAL WAS NEEDED TO DETERMINE WHETHER THE NIH SCIENTISTS WERE MERELY A PAIR OF HANDS' PERFORMING TESTS AT THE DIRECTION OF THE BURROUGHS INVENTORS OR WHETHER THEY COLLABORATED WITH THE BURROUGHS INVENTORS IN CONCEIVING OF THE IDEA THAT AZT WOULD BE EFFECTIVE THERAPY FOR AIDS THE NIH HAS GIVEN BARR THE RIGHT TO LITIGATE ITS RIGHTS IN THE AZT PATENTS THE COMPANY HAS AGREED THAT IF IT IS SUCCESSFUL IT WILL PAY THE NIH A 2 ROYALTY ON ITS AZT SALES UNTIL BARR HAS RECOUPED SOME OF ITS LEGAL EXPENSES ON THE CASE AND 4 AFTER THAT SAID BRUCE DOWNEY THE COMPANY'S PRESIDENT BURROUGHS OWNS SIX PATENTS COVERING VARIOUS METHODS OF USING AZT TO TREAT AIDS GIVING IT A LEGAL MONOPOLY ON SUPPLY OF THE DRUG IN THE US UNTIL THE YEAR 2005 BARR AND NOVOPHARM CHALLENGED THE VALIDITY OF THE BURROUGHS PATENTS BY APPLYING FOR FOOD AND DRUG ADMINISTRATION APPROVAL OF THEIR OWN GENERIC FORMS OF AZT BARR AND NOVOPHARM CONTEND THAT THE NIH MADE ESSENTIAL STRIDES IN DEVELOPING THE AZT TREATMENT BY TESTING IT ON HUMAN CELLS INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS WHILE BURROUGHS HAD TESTED THE DRUG ONLY ON MICE BURROUGHS SAID IN A STATEMENT THAT THE GOVERNMENT DOESN'T HAVE ANY RIGHTS TO ITS PATENTS AND THAT ITS INVENTION WAS COMPLETE BEFORE ANYONE AT THE NATIONAL INSTITUTES OF HEALTH PERFORMED ANY WORK ON THE COMPOUND AZT IN A PRETRIAL OPINION JUDGE MALCOLM HOWARD SAID HE BELIEVED BURROUGHS HAD A VERY STRONG CASE ON SOME OF THE ISSUES THE CASE HOWEVER WILL BE TRIED BEFORE A JURY WHICH MAKES ME A LITTLE MORE UNEASY ABOUT THE WELLCOME SITUATION SAID MR DESAI THE INDUSTRY ANALYST BARR'S AND NOVOPHARM'S PROMISES TO CUT AZT'S PRICE MIGHT HELP SWAY THE JURY IN FAVOR OF THE GENERIC MANUFACTURERS HE SAID JUDGE HOWARD IS EXPECTED TO TRY TO SHARPLY CURTAIL THE AMOUNT OF EVIDENCE PRESENTED ABOUT THE IMPACT OF THE HIGH PRICE OF BURROUGHS'S DRUG ON AIDS PATIENTS IN ADDITION HE HAS TOLD THE GENERIC MANUFACTURERS' LAWYERS NOT TO DWELL ON TESTIMONY SUGGESTING THAT THE NIH SCIENTISTS DESERVE TO BE LABELED COINVENTORS BECAUSE OF THEIR COURAGE IN USING LIVE HIV VIRUS TO TEST THE DRUG AT A TIME WHEN THE POSSIBLE RISKS TO RESEARCHERS WERE UNCLEAR I DON'T INTEND FOR THIS TO PERMEATE A WHOLE BUNCH OF TESTIMONY THE JUDGE SAID IN A PRETRIAL PROCEEDING WHAT'S BRAVERY TO ONE PERSON IS NOT BRAVERY TO ANOTHER HOWEVER LAWYERS INVOLVED IN THE TRIAL SAID JUDGE HOWARD MAY HAVE TO ADMIT SOME EVIDENCE ABOUT THE DRUG'S HIGH COST SUCH TESTIMONY WILL BE NECESSARY THE LAWYERS SAID BECAUSE NOVOPHARM HAS ALLEGED THAT BURROUGHS DECEPTIVELY OMITTED NIH FROM ITSATENT APPLICATION IN ORDER TO OBTAIN A MONOPOLY AND THEREBY CHARGE MORE THAN IT COULD HAVE IN A COMPETITIVE MARKET STILL THAT EVIDENCE COULD BE LIMITED TO TESTIMONY ABOUT BURROUGHS'S ANTICIPATED PROFITS AT THE TIME IT FILED THE PATENT APPLICATION EXCLUDING EVIDENCE ABOUT THE COMPANY'S SUBSEQUENT PROFITS FROM THE DRUG THE JOHN MORRELL & CO UNIT OF CHIQUITA BRANDS INTERNATIONAL INC CAN UNILATERALLY CHANGE OR ELIMINATE MEDICAL BENEFITS OF 3300 RETIRED HOURLY EMPLOYEES A FEDERAL JUDGE RULED JUDGE RICHARD BATTEY NOTED IN HIS DECISION THAT UNLIKE PENSION BENEFITS MEDICAL BENEFITS AREN'T AUTOMATICALLY VESTED OR GUARANTEED AND HE SAID RECENT CONTRACTS NEGOTIATED BETWEEN THE MEATPACKING COMPANY AND THE UNITED FOOD AND COMMERCIAL WORKERS UNION DIDN'T EXTEND THE RETIREES' BENEFITS BEYOND THE DURATION OF THE CONTRACTS DESPITE A GENERAL DESIRE THAT RETIRED MORRELL EMPLOYEES SHOULD HAVE ADEQUATE HEALTH COVERAGE THE COURT CANNOT TRANSFER SUCH DESIRE INTO CONTRACT PROVISIONS THE RAPID CITY SD JUDGE SAID IN HIS RULING THE CASE WAS AN EXAMPLE OF A NEW WRINKLE IN THE TUGOFWAR OVER RETIREE BENEFITS BECAUSE IT WAS MORRELL THAT SUED ITS RETIREES ASKING THE JUDGE TO DECLARE THAT IT HAD THE RIGHT TO CUT BENEFITS THE CASE WAS THE SUBJECT OF A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL THIS YEAR IT'S JUST A TERRIBLE DECISION SAID IRVING KING THE CHICAGO ATTORNEY WHO REPRESENTED THE RETIREES MR KING SAID THE JUDGE'S RULING FAILED TO MENTION CONTRACT LANGUAGE STATING THAT THE RETIREE BENEFITS COULDN'T BE CUT WITHOUT NEGOTIATIONS A SPOKESWOMAN FOR CHIQUITA WHICH ALSO PRODUCES FRESH FRUIT AND VEGETABLES SAID THE COMPANY HAD NO COMMENT MORRELL CITED RISING MEDICAL COSTS WHEN IT ANNOUNCED THE CHANGES AND SUED ITS RETIREES IN LATE 1991 THE CHANGES INCLUDING HIGHER DEDUCTIBLES AND HIGHER MAXIMUMS FOR OUTOFPOCKET EXPENSES WERE PUT ON HOLD WHILE THE CASE WAS DECIDED THE CHIQUITA SPOKESWOMAN DECLINED TO SAY WHETHER THE COMPANY WOULD GO BEYOND THE BENEFIT CUTS ALREADY ANNOUNCED AS THE JUDGE RULED IT HAS A RIGHT TO DO JOHN MORRELL & CO VS UNITED FOOD AND COMMERICAL WORKERS INTERNATIONAL UNION AFLCIO AND BENARD J ANING US DISTRICT COURT RAPID CITY SD CV914184 A GROUP OF SAN DIEGO PADRES FANS UPSET OVER THE TRADING OF SOME STAR PLAYERS FILED A LAWSUIT ACCUSING THE BASEBALL TEAM AND ITS OWNERS OF FRAUD THE SUIT FILED IN STATE COURT IN SAN DIEGO SEEKS CLASSACTION STATUS ON BEHALF OF ALL 1993 SEASONTICKET HOLDERS AND FANS WHO BOUGHT TICKETS IN ADVANCE THE SUIT CONTENDS THAT TEAM PRESIDENT RICHARD J FREEMAN PROMISED TO RETAIN THE TEAM'S CORE OF STANDOUT PLAYERS IN FUTURE YEARS IN A LETTER TO SEASONTICKET HOLDERS LAST NOVEMBER INSTEAD THE PADRES HAVE BEEN TRADING THEIR HIGHESTPAID STARS INCLUDING SEVERAL MENTIONED BY MR FREEMAN IN THE LETTER AS THE CORE OF AN EXCELLENT TEAM FOR YEARS TO COME IT'S A CLASSIC CASE OF FRAUD AND BAITANDSWITCH SAID THE PLAINTIFFS' LAWYER GREGORY P GOONAN OF SAN DIEGO LAW FIRM BARNHORST SCHREINER & GOONAN THE TWO PLAINTIFFS NAMED IN THE CASE PAUL G AND NANCY MARSHALL ARE SEASONTICKET HOLDERS AND FRIENDS OF FIRM PARTNER STEPHEN L SCHREINER THE LAW FIRM ALSO HOLDS FOUR SEASON TICKETS A SPOKESMAN FOR THE PADRES DECLINED TO COMMENT ON THE SUIT BUT IN AN INTERNAL STATEMENT TO EMPLOYEES RELEASED OVER THE WEEKEND MR FREEMAN DEFENDED HIS LETTER TO SEASONTICKET HOLDERS IN NOVEMBER SAYING EVERYTHING IN THAT LETTER WAS TRUE AS THE FACTS EXISTED AT THAT TIME NEVERTHELESS HE OFFERED REFUNDS FOR REMAINING GAMES TO ANYONE WHO BOUGHT SEASON TICKETS BELIEVING ALL OF THE PLAYERS NAMED IN THE LETTER WOULD PLAY OUT THE SEASON THE GOODWILL OF OUR FANS IS IMPORTANT HE WROTE ALTHOUGH THE TEAM'S MANAGEMENT HAS MADE SEVERAL PUBLIC STATEMENTS THAT CERTAIN STARS WOULDN'T BE TRADED MR GOONAN SAID THE SUIT HINGES ON THE UNUSUALLY SPECIFIC LETTER FROM TEAM PRESIDENT MR FREEMAN FIRST BASEMAN FRED MCGRIFF WAS UNDER CONTRACT THROUGH 1995 MR FREEMAN NOTED IN THE LETTER AND CENTER FIELDER DARRIN JACKSON AND POPULAR THIRD BASEMAN GARY SHEFFIELD ARE TIED TO THE PADRES THROUGH THE 1994 SEASON MR FREEMAN ADDED IN THE LETTER IT IS IMPORTANT THAT THE NUCLEUS OF OUR TEAM IS TIED TO THE PADRES THROUGH 1994 OR 1995 BUT TO THE DISMAY OF SOME FANS THE PADRES TRADED MR JACKSON TO THE TORONTO BLUE JAYS AT THE BEGINNING OF THE SEASON AND TRADED MR SHEFFIELD LAST WEEK TO THE FLORIDA MARLINS TRADE TALKS ARE ALSO UNDER WAY FOR MR MCGRIFF AND THE PADRES WHO WERE IN CONTENTION FOR THE NATIONAL LEAGUE WEST TITLE AS LATE AS AUGUST LAST YEAR WERE 21 GAMES OUT OF FIRST PLACE YESTERDAY AND ARE PLAYING ABYSMALLY SAID MR GOONAN THE SUIT IS APPARENTLY THE FIRST OF ITS KIND MR GOONAN SAID BECAUSE NO TEAM PRESIDENT HAS EVER COMMITTED HIMSELF TO TICKET HOLDERS THE WAY MR FREEMAN ALLEGEDLY DID IN HIS LETTER WE WOULDN'T HAVE FILED THE SUIT WITHOUT THE LETTER SAID MR GOONAN THE SUIT SEEKS A REFUND FOR AN UNSPECIFIED NUMBER OF 1993 SEASONTICKET HOLDERS AND FOR FANS WHO BOUGHT TICKETS IN ADVANCE ROBERT L ROSE AND MILO GEYELIN CONTRIBUTED TO THIS COLUMN 9306280073 930628 POLITICS & POLICY CHANCE TO ALTER CONSERVATIVE JUDICIARY BECKONS BUT SEATS ON FEDERAL BENCHES REMAIN UNFILLED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUTH BADER GINSBURG NOT ONLY HOLDS THE DISTINCTION OF BEING PRESIDENT CLINTON'S FIRST SUPREME COURT NOMINATION SHE'S HIS FIRST NOMINATION TO ANY FEDERAL BENCH FIVE MONTHS AFTER TAKING OFFICE MR CLINTON HAS FAILED TO FILL EVEN ONE OF THE 123 VACANCIES 15 OF THE TOTAL ON THE FEDERAL APPELLATE AND DISTRICT COURT BENCHES AROUND THE COUNTRY SO FAR THE ONLY JUDGESHIP HE HAS FILLED IS ONE ON THE DISTRICT OF COLUMBIA SUPERIOR COURT WHICH HANDLES DAYTODAY CRIMINAL AND CIVIL MATTERS IN THE NATION'S CAPITAL ALL THOSE VACANCIES REPRESENT A GIANT OPPORTUNITY TO STEM THE COURT'S RIGHTWARD TIDE AFTER 12 YEARS OF REPUBLICAN APPOINTMENTS THE BUSH AND REAGAN ADMINISTRATIONS PUT AN ENTIRE GENERATION OF CONSERVATIVE LAWYERS IN BLACK ROBES FILLING MORE THAN TWOTHIRDS OF THE FEDERAL SYSTEM'S 846 TRIAL AND APPELLATE JUDGESHIPS THIS CONSERVATIVE CADRE HAS MADE LIFE MORE DIFFICULT FOR ELEMENTS OF THE CLINTON CONSTITUENCY IN AREAS SUCH AS CIVIL RIGHTS ENVIRONMENTAL REGULATION AND SEX DISCRIMINATION THE DELAY WORRIES LIBERAL COURTWATCHERS IF MR CLINTON FAILS TO MOVE QUICKLY SAYS NAN ARON OF THE LIBERAL ALLIANCE FOR JUSTICE A CONSERVATIVEDOMINATED BENCH MAY FRUSTRATE HIS AMBITIOUS AGENDA MEMBERS OF THE SENATE JUDICIARY COMMITTEE ALSO ARE CONCERNED IT IS DISAPPOINTING THAT WE ARE SITTING HERE IN THE MIDDLE OF JUNE WITH NOT A SINGLE JUDICIAL NOMINATION HAVING BEEN SENT TO THIS COMMITTEE CHAIRMAN JOSEPH BIDEN OF DELAWARE SAID AT A HEARING LAST WEEK WHITE HOUSE COUNSEL BERNARD NUSSBAUM BLAMES SOME OF THE DELAY ON THE 88DAY SUPREME COURT SEARCH AS WELL AS PROBLEMS GETTING KEY PEOPLE IN PLACE THE OFFICIAL DESIGNATED TO OVERSEE JUDGEPICKING AT THE JUSTICE DEPARTMENT ELEANOR DEAN ACHESON HAD HER CONFIRMATION HEARING ONLY LAST WEEK AFTER A HOLDUP CAUSED IN PART BY CONCERN OVER HER PAST MEMBERSHIP IN AN ALLWHITE COUNTRY CLUB BUT ANOTHER FACTOR IS THE DESIRE OF MR CLINTON A FORMER CONSTITUTIONAL LAW PROFESSOR AT THE UNIVERSITY OF ARKANSAS TO BE PERSONALLY INVOLVED IN APPROVING JUDGES SOMETHING HIS REPUBLICAN PREDECESSORS LEFT ENTIRELY TO AIDES THE PRESIDENT'S SPORADIC PARTICIPATION IN DISCUSSIONS ABOUT THE LOWER COURTS HAS SLOWED THE SELECTION PROCESS MUCH AS IT DID THE SUPREME COURT SEARCH SENATE DEMOCRATS ARE ALSO PART OF THE PROBLEM SENATORS OF THE SAME PARTY AS THE PRESIDENT BY TRADITION MAKE RECOMMENDATIONS FOR DISTRICT COURT JUDGES IN THEIR STATES SOME DEMOCRATS ARE OUT OF PRACTICE AND ARE ONLY NOW BEGINNING TO SEND CANDIDATES' NAMES TO THE ADMINISTRATION ACCORDING TO WHITE HOUSE AIDES MR NUSSBAUM VOWS THAT ONCE WE BEGIN ANNOUNCING JUDICIAL APPOINTMENTS IN JULY WE WILL BE DOING THAT ON A CONTINUAL BASIS HE PROMISES TO HAVE ALL THE VACANCILLED BY THE MIDDLE OF NEXT YEAR ADDING IF WE DO THAT THAT WILL BE AN ALLTIME RECORD MANY ARE SKEPTICAL THOUGH THAT PROMISE IS JUST AS GOOD AS ANY OTHER PROMISE MADE BY THIS ADMINISTRATION SAYS WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE JUDICIARY'S EDUCATION AND RESEARCH ARM IT WOULD BE A MIRACLE IF THEY GET ANYBODY CONFIRMED THIS YEAR IN ADDITION SINCE ABOUT 50 JUDGESHIPS COME OPEN ANNUALLY BECAUSE OF DEATHS AND RETIREMENTS MR CLINTON WILL LIKELY BE SCRAMBLING TO CATCH UP FOR THE FORESEEABLE FUTURE MR CLINTON TO BE SURE ISN'T ALONE IN FAILING TO CAPITALIZE ON LOWERCOURT VACANCIES PRESIDENT BUSH APPOINTED ONLY 15 JUDGES IN HIS FIRST YEAR AND HIS ADMINISTRATION'S LETHARGY WAS CHIEFLY RESPONSIBLE FOR ALLOWING SO MANY OPENINGS TO REMAIN UNFILLED FOR SO LONG MR BUSH NEVER TOOK FULL ADVANTAGE OF 85 NEW JUDGESHIPS THAT CONGRESS CREATED IN DECEMBER 1990 DOZENS OF THOSE REMAIN UNFILLED STILL THE BUSH AND REAGAN ADMINISTRATIONS TOGETHER LEFT A DISTINCTLY CONSERVATIVE STAMP ON THE FEDERAL BENCH FOR EXAMPLE REPUBLICAN APPOINTEES NOW HAVE MAJORITIES ON ALL OF THE FEDERAL SYSTEM'S 13 REGIONAL COURTS OF APPEAL YOU'D THINK THE CLINTON ADMINISTRATION WOULD WANT TO GET GOING ADDRESSING THE IMBALANCE SAYS US DISTRICT JUDGE LUCIUS BUNTON A CARTER APPOINTEE BASED IN MIDLAND TEXAS APART FROM POLITICS THE VACANCIES ARE EXACERBATING DELAYS IN CIVIL TRIALS THAT STRETCH TO THREE YEARS OR MORE IN SOME PARTS OF THE COUNTRY IT'S KIND OF FRUSTRATING OUT HERE SAYS JUDGE BUNTON WHO OFFICIALLY WENT ON SEMIRETIRED STATUS WHEN HE TURNED 68 LAST DECEMBER BUT HASN'T BEEN ABLE TO REDUCE HIS WORKLOAD BECAUSE THREE OF THE 10 JUDGESHIPS IN WESTERN TEXAS ARE VACANT WITH HEARINGS ON JUDGE GINSBURG'S NOMINATION SCHEDULED FOR LATE NEXT MONTH FOLLOWED BY THE SENATE'S AUGUST RECESS THE JUDICIARY COMMITTEE WON'T BEGIN SERIOUS WORK ON LOWERCOURT NOMINEES UNTIL FALL AT THE EARLIEST SEN BIDEN THE COMMITTEE'S CHAIRMAN HAS SUGGESTED THAT THE WHITE HOUSE NOT DUMP DOZENS OF NAMES ON THE COMMITTEE AT ONCE BUT INSTEAD SEND THEM UP A FEW AT A TIME SO THAT SENATE STAFFERS OF BOTH PARTIES AREN'T OVERWHELMED THE COMMITTEE'S RANKING REPUBLICAN SEN ORRIN HATCH OF UTAH HAS SIGNALED THAT HE IS WILLING TO COOPERATE AS LONG AS THE WHITE HOUSE DOESN'T SEND UP CONTROVERSIAL CANDIDATES ONE SUCH POTENTIAL CLINTON NOMINEE WHO WOULD PROVOKE A FIGHT IS LAURENCE TRIBE AN OUTSPOKEN LIBERAL PROFESSOR AT HARVARD LAW SCHOOL WHOSE OPPOSITION TO THE 1987 SUPREME COURT NOMINATION OF ROBERT BORK STILL EVOKES BITTERNESS AMONG MANY REPUBLICANS OUTSIDE CONSERVATIVE LEGAL ACTIVISTS MEANWHILE ARE SALIVATING OVER THE PROSPECT OF ATTACKING CLINTON APPOINTEES IN ORDER TO AVENGE MR BORK AND OTHER CONSERVATIVE JUDICIAL NOMINEES SHOT DOWN BY LIBERALS DURING THE REAGANBUSH YEARS WE INTEND TO FORCE MR CLINTON TO EXPEND THE MAXIMUM POLITICAL CAPITAL ON HIS NOMINEES SAYS CLINT BOLICK WHO GALVANIZED OPPOSITION TO LANI GUINIER'S FAILED APPOINTMENT TO THE JUSTICE DEPARTMENT'S TOP CIVIL RIGHTS JOB PAUL WEYRICH'S FREE CONGRESS FOUNDATION WHICH WAS A KEY PLAYER IN THE BEHINDTHESCENES BATTLE OVER THE CONFIRMATION OF JUSTICE CLARENCE THOMAS NOW CLAIMS 100 REGIONAL AFFILIATES FOR ITS SATELLITETELEVISION NETWORK AND IS DEVOTING AN INCREASING AMOUNT OF PROGRAMMING TO WARNINGS ABOUT A LIBERAL RETAKING OF THE JUDICIARY THE IDEA ACCORDING TO THOMAS JIPPING FREE CONGRESS'S CHIEF LEGAL STRATEGIST IS TO MAKE SENATORS' VOTES FOR LIBERAL JUDICIAL NOMINEES A SIGNIFICANT ISSUE IN REELECTION CAMPAIGNS IN 1994 AND 1996 MODIFYING THE CADENCE OF HOMOSEXUALRIGHTS PROTEST CHANTS MR JIPPING SAYS THAT THE MESSAGE TO THE WHITE HOUSE IS WE'RE HERE WE'RE IN YOUR FACE GET USED TO IT 9306280072 930628 CANADIAN INDUSTRIAL PRICES OTTAWA CANADA'S INDEX OF INDUSTRIAL PRODUCT PRICES WAS UNCHANGED IN MAY FROM APRIL STATISTICS CANADA A GOVERNMENT AGENCY SAID IN APRIL THE INDEX DECLINED 02 FROM MARCH 9306280071 930628 LEISURE & ARTS BOOKSHELF THE LAST OF EDMUND WILSON'S JOURNALS BY HILTON KRAMER LONG BEFORE HIS DEATH IN 1972 AT THE AGE OF 77 EDMUND WILSON HAD COME TO BE WIDELY REGARDED AS AMERICA'S GREATEST MAN OF LETTERS WILSON'S MANY BOOKS AND ARTICLES ON LITERARY AND HISTORICAL SUBJECTS FROM AXEL'S CASTLE 1931 HIS CLASSIC ACCOUNT OF MODERN LITERATURE TO PATRIOTIC GORE 1962 HIS CONTROVERSIAL HISTORY OF THE LITERATURE OF THE CIVIL WAR WERE MORE AVIDLY READ THAN THOSE OF ANY OTHER CRITIC OF HIS TIME AS A MEMOIRIST AND AUTOBIOGRAPHER MOREOVER HE EMERGED IN HIS LATER YEARS AS A VIVID HISTORICAL CHARACTER IN HIS OWN RIGHT A CURMUDGEON WHO RAILED AGAINST THE GOVERNMENT THE ACADEMY AND THE FASHIONS OF INTELLECTUAL LIFE WHILE REMAINING AN UNREPENTANT HEDONIST AND UNASHAMED HIGHBROW IN HIS OWN PURSUITS SINCE WILSON'S DEATH A SERIES OF NEW BOOKS HAVE BEEN MINED FROM HIS UNCOLLECTED AND UNPUBLISHED WRITINGS ESSAYS LETTERS AND JOURNALS AND A NUMBER OF EARLIER BOOKS HAVE BEEN REISSUED IN NEW EDITIONS NOW WITH THE PUBLICATION OF THE SIXTIES THE LAST JOURNAL 19601972 FARRAR STRAUS GIROUX 968 PAGES 35 WE HAVE COME TO THE FINAL VOLUME OF HIS DIARIES IN THESE COPIOUS AND CANDID JOURNALS WILSON'S PATRICIAN IMPERSONALITY GIVES WAY TO A NEED TO RECORD EVERY LAST DETAIL OF HIS PERSONAL EXPERIENCE NO MATTER HOW REPULSIVE OR DEMEANING THUS IN THESE PAGES HE IS GRUESOMELY GRAPHIC ABOUT THE UNREMITTING MEDICAL AND DENTAL AFFLICTIONS HE SUFFERED IN OLD AGE AS INDEED HE IS TOO ABOUT THE DRINKING HABITS THAT CONTRIBUTED A GOOD DEAL TO HIS PHYSICAL IMPAIRMENTS HE IS EQUALLY VOLUBLE ABOUT HIS SEXUAL EXPLOITS NOT ONLY WITH HIS BELOVED FOURTH WIFE ELENA BUT WITH THE OTHER WOMEN WHO SUCCUMBED TO HIS GERIATRIC CHARMS ALREADY IN THE FIFTIES WILSON HAD OBSERVED IN HIS MOST UNAPPETIZING COLDBLOODED MANNER THAT AS HE GREW OLDER THE NEED TO COPULATE SEEMED AS IF IT WERE AN ELDERLY MALADY LIKE GOUT OR ENLARGEMENT OF THE PROSTATE GLAND IN THE SIXTIES HE CONTINUES TO PROVIDE CLINICAL DESCRIPTIONS OF HIS MALADY THAT ARE NOT ALWAYS SIGNIFICANTLY DIFFERENT IN FEELING FROM HIS DOUR ACCOUNTS OF VISITS TO THE DENTIST THE POLITICS OF THE SIXTIES DON'T GIVE ONE MUCH TO CHEER ABOUT EITHER AFTER ABANDONING THE RADICALISM THAT HE HAD FAMOUSLY PROFESSED IN THE '30S WILSON SETTLED IN HIS LATER YEARS FOR THE UNEXAMINED COMFORTS OF LIBERAL ORTHODOXY THUS HIS LAST POLITICAL ENTHUSIASM WAS FOR THE PRESIDENTIAL CANDIDACY OF GEORGE MCGOVERN WHOM HE MEETS IN THESE PAGES AT A DINNER PARTY AT LILLIAN HELLMAN'S ON HIS FREQUENT VISITS TO NEW YORK IN THE '60S WILSON SEEMS RARELY TO HAVE MET ANYONE OUTSIDE THE RADICALCHIC CIRCLE HE DESCRIBES AS THE NEW CULTURAL ESTABLISHMENT WHICH BESIDES HELLMAN THEN INCLUDED ROBERT LOWELL AND HIS WIFE ELIZABETH HARDWICK JASON AND BARBARA EPSTEIN NORMAN PODHORETZ ARTHUR SCHLESINGER MIKE NICHOLS AND SUNDRY OTHER FIGURES AROUND THE NEW YORK REVIEW OF BOOKS AND THE NEW YORKER WITH JACKIE KENNEDY AS HE WRITES SOMEHOW ON THE FRINGES OF ALL THIS REPUBLICANS AND OTHER DISSENTERS FROM THE POLITICAL ORTHODOXY OF THIS CIRCLE CONTINUED TO BE LOOKED UPON BY WILSON AS AN ALIEN AND ODIOUS RACE WHAT SAVES THE SIXTIES FROM COMPLETELY DEGENERATING INTO A DISPIRITING CHRONICLE OF PHYSICAL DECLINE AND POLITICAL CLICHE ARE THE PAGES HE DEVOTES TO WRITERS AND THEIR WORKS QUITE THE BEST THING IN THE BOOK ARE HIS REPORTS OF HIS CONVERSATIONS WITH WH AUDEN ONE OF THE FEW LIVING WRITERS WILSON GREATLY ESTEEMED AND WAS ALWAYS EAGER TO SEE AND GET DRUNK WITH WE HAD OUR USUAL CONVERSATION ABOUT THE CURRENT IGNORANCE OF THE TECHNIQUE OF VERSE WILSON WRITES ABOUT A MEETING IN 1969 AUDEN COMPLAINED THAT THE REVIEWERS OF HIS BOOKS NEVER SPOKE OF HIS PROSODIC VIRTUOSITY THOUGH AUDEN ALSO CLAIMED IN A LATER CONVERSATION THAT HE NEVER READS HIS REVIEWS THERE ARE INTERESTING ACCOUNTS TOO OF WILSON'S MEETINGS WITH THE CANADIAN WRITERS MARIECLAIRE BLAIS AND MORLEY CALLAGHAN THE HAITIAN POET PHILIPPE MARCELIN THE ITALIAN CRITIC MARIO PRAZ THE YIDDISH NOVELIST ISAAC BASHEVIS SINGERAND THE BRITISH POLITICAL PHILOSOPHER ISAIAH BERLIN ISAIAH IS BEHAVING MORE AND MORE LIKE ROYALTY AS WELL AS SOME DISSENTING OPINIONS ON NEW REPUTATIONS I NEVER HAVE MUCH CONVERSATION WITH SUSAN SONTAG ROGER STRAUS CAN'T QUITE FORGIVE ME BECAUSE I AM NOT IMPRESSED BY HER TO THE END WILSON KEPT UP HIS UNFLAGGING DEVOTION TO LITERATURE READING THROUGH BALZAC IN FRENCH AND TOLSTOY IN RUSSIAN AND REREADING THE WHOLE OF MACAULAY'S HISTORY OF ENGLAND QUITE FORTIFYING HE NOTES TO FIND HIM SUSTAINING IT WITH THE SAME HIGH MORALITY AND THOROUGHNESS HE KEEPS UP HIS INTEREST IN MUSIC TOO GOING FREQUENTLY TO THE OPERA ABOUT WHICH HE ALWAYS HAS SOMETHING SHARP AND ILLUMINATING TO SAY WHILE ALSO PAYING ATTENTION TO A CONTEMPORARY COMPOSER ELLIOTT CARTER WHAT REMAINED INTERESTING ABOUT WILSON EVEN IN HIS DECLINING YEARS WAS HIS CRITICAL INTELLIGENCE AND IT IS FOR THAT THAT THE BEST PAGES OF THE SIXTIES WILL BE READ AFTER ALL THE ANIMADVERSIONS ON SEX POLITICS AND FAILING POWERS HAVE BEEN RELEGATED TO THE REALM OF PERISHABLE GOSSIP MR KRAMER IS THE EDITOR OF THE NEW CRITERION 9306280070 930628 CBOT EXCHANGE IN UK SUSPEND TALKS ON VENTURE CHICAGO THE CHICAGO BOARD OF TRADE SAID IT SUSPENDED DISCUSSIONS WITH THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGE ON JOINT OPERATIONS THE CBOT SAID THE DISCUSSIONS ENDED IN A HIGHLY AMICABLE FASHION AND MAY BE REOPENED IN THE FUTURE TO EXAMINE OTHER JOINT ARRANGEMENTS THE TWO EXCHANGES HAD BEEN NEGOTIATING THE POSSIBLE ESTABLISHMENT OF A JOINT CLEARING AND TRADING LINKAGE BUT LIFFE CHAIRMAN NJ DURLACHER SAID IN A LETTER TO MEMBERS THAT UNFORTUNATELY WE HAVE BEEN UNABLE TO CONSTRUCT LINKAGE TERMS WHICH PROVIDE SUFFICIENT MUTUAL BENEFIT TO THE MEMBERS OF BOTH EXCHANGES AND STRIKE AN ACCEPTABLE BALANCE IN TERMS OF PRODUCTS INCLUDED STYLE OF CLEARING AND TRADING HOURS ASSOCIATED WITH THE LINKAGE 9306280068 930628 IMCERA UNIT IS CITED BY NRC IN SHIPPING RADIOACTIVE MATERIAL KING OF PRUSSIA PA THE NUCLEAR REGULATORY COMMISSION CITED IMCERA GROUP INC'S MEDICALIMAGINGPRODUCTS UNIT FOR ALLEGEDLY VIOLATING SAFETY REQUIREMENTS WHILE SHIPPING RADIOACTIVE ISOTOPES TO A MEDICAL CENTER THE NRC'S CITATIONS ONE OF WHICH SEEKS A 5000 FINE WERE THE RESULT OF TWO APPARENT MISSTEPS BY THE FOLCROFT PA NUCLEARPHARMACY FACILITY OF IMCERA'S MALLINKRODT MEDICAL INC UNIT IMCERA IS BASED IN NORTHBROOK ILL IN ONE INSTANCE THE COMMISSION SAID A PACKAGE OF A TUMORIMAGING AGENT KNOWN AS TECHNETIUM 99 FROM THE FOLCROFT FACILITY ARRIVED LAST MONTH AT MERCY CATHOLIC MEDICAL CENTER FITZGERALD DIVISION DARBY PA WITH RADIOACTIVE CONTAMINATION ON THE OUTSIDE OF THE PACKAGE THE CONTENTS OF THE PACKAGE WERE INTACT AND THE SOURCE OF THE CONTAMINATION WAS NEVER FULLY DETERMINED ACCORDING TO THE NRC GIVEN THE LEVELS OF EXTERNAL CONTAMINATION ON THE PACKAGE THE NRC SAID THE POSSIBILITY EXISTED THAT RADIOACTIVE MATERIAL COULD HAVE ENDED UP UNCONTROLLED IN THE PUBLIC DOMAIN NONE OF THE RADIATION ESCAPED IN THE INCIDENT HOWEVER ACCORDING TO AN NRC SPOKESWOMAN A FEW DAYS LATER THE SAME HOSPITAL RECEIVED A PACKAGE FROM THE FOLCROFT FACILITY THAT DIDN'T BEAR THE LABELS REQUIRED BY TRANSPORTATION DEPARTMENT REGULATIONS COVERING THE TRANSPORT OF RADIOACTIVE MATERIALS THE NRC ISN'T SEEKING A FINANCIAL PENALTY FOR THAT CITATION THE COMMISSION NOTED THAT MALLINKRODT HAD TAKEN CORRECTIVE ACTIONS THAT INCLUDED INSTRUCTING PERSONNEL ON REQUISITE PROCEDURES AND ALTERING SOME PACKAGE TESTING PROCEDURES MALLINKRODT HAS 30 DAYS IN WHICH TO DECIDE WHETHER TO CONTEST THE ALLEGATIONS AN IMCERA SPOKESMAN SAID THAT MALLINKRODT REGRETS ANY INCONVENIENCE THAT THESE INCIDENTS AND REPORTS MAY HAVE CAUSED CUSTOMERS AND REMAINS COMMITTED TO THE SAFETY AND QUALITY OF OUR PRODUCTS HE ADDED THE COMPANY COOPERATED AND WILL CONTINUE TO COOPERATE FULLY WITH THE NRC WHILE HE SAID NEITHER INCIDENT PRESENTED ANY HEALTH HAZARD TO HOSPITAL EMPLOYEES PATIENTS OR MALLINKRODT WORKERS THAT DOESN'T MAKE THEM ACCEPTABLE 9306280067 930628 MARKETING & MEDIA HOCKEY STAR SUES NIKE OVER ENDORSEMENT PACT LOS ANGELES HOCKEY SUPERSTAR WAYNE GRETZKY FILED A LAWSUIT AGAINST NIKE INC CHARGING THAT THE SNEAKERMAKER BACKED OUT OF AN ENDORSEMENT DEAL AFTER HE WAS INJURED IN THE STATE COURT SUIT MR GRETZKY SAID NIKE PROMISED TO PAY HIM 2 OF ITS NET WHOLESALE SALES OF DENIM APPAREL IN EXCHANGE FOR HIS ENDORSEMENT MR GRETZKY ALLEGES THAT NIKE BROKE THE AGREEMENT IN SEPTEMBER BY REFUSING TO PAY AND BY DENYING THE VERY EXISTENCE OF ITS PROMISES IN BEAVERTON ORE NIKE OFFICIALS COULDN'T BE REACHED TO COMMENT NIKE MADE ITS PROMISES AT A TIME WHEN GRETZKY WAS AT THE PEAK OF HIS ATHLETIC PERFORMANCE POPULARITY AND FAME AND THEN IN A CALLOUS AND DESPICABLE MANNER REFUSED TO HONOR ITS PROMISES AT A TIME WHEN GRETZKY WAS SEVERELY INJURED AND UNABLE TO PERFORM AS A CONSEQUENCE THE SUIT SAID MR GRETZKY CHARGED THAT HE REFUSED SUBSTANTIAL BUSINESS OPPORTUNITIES BECAUSE OF THE NIKE AGREEMENT INCLUDING AN OFFER FROM A RIVAL MAKER OF DENIM APPAREL 9306280066 930628 MANAGEMENT LORENZO'S PLAN FOR NEW AIRLINE PROVOKES LABOR BY CAROLYN PHILLIPS AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL MAKE FRANK LORENZO THE ISSUE THAT WAS THE GUIDING TENET IN A TWOYEARLONG BATTLE THAT LABOR UNIONS WAGED AGAINST THE FORMER HEAD OF TEXAS AIR CORP THE UNION STRATEGY OF PERSONALIZING THE FIGHT WAS A FACTOR IN MR LORENZO'S LOSING CONTROL OF THE COMPANY'S EASTERN AIRLINES UNIT RESIGNING FROM CONTINENTAL AIRLINES HOLDINGS INC AS TEXAS AIR WAS RENAMED AND LEAVING THE AIRLINE BUSINESS ALTOGETHER IN 1990 WELL HE'S BACK BEGINNING TODAY A FEDERAL ADMINISTRATIVE LAW JUDGE IN WASHINGTON DC IS CHARGED WITH DETERMINING MR LORENZO'S FITNESS TO RUN A NEW STARTUP AIRLINE AND SOME OF THE SAME UNION OFFICIALS ALONG WITH A GOODLY NUMBER OF LEGISLATORS SAY THAT FRANK LORENZO IS STILL THE ISSUE HE PERSONALLY IS RESPONSIBLE FOR THE LOSS OF JOBS AND THE HUMAN MISERY OF HUNDREDS OF THOUSANDS OF AIRLINE WORKERS RANDOLPH BABBITT PRESIDENT OF THE AIR LINE PILOTS ASSOCIATION SAID WHEN MR LORENZO'S PLANS TO START HIS AIRLINE FIRST WERE MADE PUBLIC HE IS NOT JUST A SYMBOL OF EVIL IN THE WORKPLACE HE IS THE VERY EMBODIMENT OF IT ALPA PLEDGED TO FIGHT MR LORENZO AT EVERY VENUE AT EVERY GOVERNMENT OFFICE AND IN EVERY MARKETPLACE SUCH AN ATTEMPT BY JOBHUNGRY LABOR TO KILL A STARTUP CARRIER IS STARTLING AT A TIME WHEN LARGE AIRLINES ARE LAYING OFF TENS OF THOUSANDS OF WORKERS BUT LABOR LEADERS SAY THEY CAN'T AFFORD TO PERMIT MR LORENZO TO REENTER THE INDUSTRY AS FOR THE 52YEAROLD MR LORENZO HE SAYS THE CONTROVERSY IS NOT A SURPRISE ALTHOUGH PEOPLE WHO KNOW HIM SAY HE DIDN'T EXPECT THE DEPTH OF THE OPPOSITION IT IS DISAPPOINTING TO SEE THE INCREASED CURRENCY SO TO SPEAK IN THE NEW CLINTON ADMINISTRATION OF THE LABOR POINT OF VIEW BUT SO BE IT WE JUST HAVE TO LIVE WITH THAT MR LORENZO SAID MR LORENZO WANTS TO START A LOWFARE NOFRILLS AIRLINE BASED IN BALTIMORE OR WASHINGTON DC AND FLYING TO FLORIDA AND OTHER EAST COAST LOCATIONS AT LEAST A DOZEN SUCH NEW NICHE AIRLINES HAVE POPPED UP AROUND THE COUNTRY IN THE PAST YEAR OR SO CONSUMERS ARE BEGGING FOR AN ALTERNATIVE PRODUCT TODAY MR LORENZO SAYS THEY'RE EXTREMELY DESIROUS OF DEPENDABLE EFFICIENT COMFORTABLE USERFRIENDLY AND INEXPENSIVE AIR TRANSPORTATION WE REALLY SEE THIS AS AN OPPORTUNITY IN AVIATION WE THINK IT MAKES A LOT OF SENSE LIKE MR LORENZO THE FOUNDERS OF EACH NEW AIRLINE HAD TO SEEK APPROVAL FROM THE DEPARTMENT OF TRANSPORTATION THE PROCESS IS INTENDED TO PROTECT THE PUBLIC'S INTEREST BY ENSURING SUCH ENTERPRISES ARE FINANCIALLY SOUND HAVE ADEQUATE MANAGEMENT EXPERTISE AND ARE RUN BY EXECUTIVES LIKELY TO COMPLY WITH GOVERNMENT REGULATIONS WHILE NOT ALL APPLICANTS GET APPROVED THE ADMINISTRATIVE REVIEW MR LORENZO FACES IS HIGHLY UNUSUAL THE DOT HAS HELD ONLY ONE SUCH REVIEW IN THE PAST FIVE YEARS REGARDING DISCOVERY AIRLINES AND THAT CENTERED ON THE ISSUE OF FOREIGN OWNERSHIP LAST YEAR THE DOT GRANTED CERTIFICATES TO 15 CARRIERS MONEY IS NOT MR LORENZO'S PROBLEM HE HAS HIS OWN MILLIONS AND HAS SIGNED UP A PARTNER WITH BUCKS TOO JOHN AKERS WHO RECENTLY WAS FORCED TO RESIGN AS CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED TWO WEEKS AGO THAT HE IS AN INVESTOR IN MR LORENZO'S ATX INC MR AKERS'S INVESTMENT IS LESS THAN 5 IT'S MR LORENZO'S TRACK RECORD THAT'S AT ISSUE UNIONS SAY THAT HE ABROGATED LABOR CONTRACTS AT CONTINENTAL AIRLINES AND THAT HIS LEADERSHIP PUT THAT CARRIER INTO BANKRUPTCY PROTECTION TWICE EASTERN FILED ONLY ONE TIME BUT IT SHUT DOWN IN EARLY 1991 THROWING MORE THAN 30000 WORKERS OUT OF WORK THEY POINT OUT THAT STEPHEN KOLSKI MR LORENZO'S CHOICE TO RUN ATX WAS CHIEF EXECUTIVE AT CONTINENTAL EXPRESS WHEN THAT CARRIER HAD TWO FATAL AIRPLANE CRASHES AND THEY AGAIN BRING UP THE CONCLUSIONS OF THE BANKRUPTCY COURT JUDGE IN THE EASTERN CASE WHO FOUND MR LORENZO UNFIT TO RUN THE CARRIER AND APPOINTED A TRUSTEE MR LORENZO IS ABLE TO PROPOSE REENTERING THE AIRLINE BUSINESS BECAUSE HE SETTLED CLAIMS EARLIER THIS YEAR BY CONTINENTAL'S CREDITORS IN BANKRUPTCY COURT THAT HE SHOULD HAVE KNOWN THE AIRLINE WAS INSOLVENT WHEN HE SOLD HIS STAKE IN CONTINENTAL HOLDINGS IN 1990 TO SCANDINAVIAN AIRLINE SYSTEMS MR LORENZO STILL DENIES THE CHARGE AND SAYS THAT EVEN SO HE PAID THE CREDITORS SLIGHTLY LESS THAN 5 MILLION AS PART OF THE SETTLEMENT THE SEVENYEAR NOCOMPETE AGREEMENT MR LORENZO HAD SIGNED WHEN HE SOLD HIS CONTINENTAL STAKE AND STEPPED DOWN AS CHAIRMAN WAS DROPPED BUT ONCE WORD OF HIS NEW PLAN BEGAN TO SPREAD THE UNION'S CAMPAIGN QUICKLY SPILLED OVER INTO THE RANKS OF CONGRESSMEN MANY OF THEM LABORBACKED WHO REMEMBER THE HEADLINES OF THE LATE 1980S CALLING MR LORENZO AMERICA'S TOUGHEST BOSS MORE THAN 120 MEMBERS OF CONGRESS HAVE WRITTEN TO THE DOT OPPOSING MR LORENZO'S BID THIS TIME AROUND MR LORENZO HAS HIS SUPPORTERS TOO ALFRED KAHN WHO RAN THE CIVIL AERONAUTICS BOARD WHEN THE AIRLINE INDUSTRY WAS DEREGULATED SAID IN PAPERS FILED WITH THE DOT LAST WEEK THAT TO DENY MR LORENZO WOULD BE IN FLAT CONTRADICTION OF BOTH THE PURPOSES AND THE PROVISIONS OF THE DEREGULATION ACT OF 1978 AS I UNDERSTAND THEM AND PLAYED A ROLE IN THEIR EFFECTUATION MR KAHN FOR A TIME ALSO WAS A DIRECTOR OF NEW YORK AIR ANOTHER AIRLINE MR LORENZO CONTROLLED PILOTS SEEKING WORK EVEN HAVE CALLED THIS NEWSPAPER ASKING FOR MR LORENZO'S TELEPHONE NUMBER BECAUSE THEY WANTED TO APPLY FOR A JOB WHILE NO ONE IS READY TO SAY WHICH WAY THE DECISION WILL GO ON MR LORENZO'S APPLICATION PEOPLE FAMILIAR WITH THE DOT SAY HIS WILL CERTAINLY BE AN UPHILL STRUGGLE GIVEN ALL THE BAGGAGE HE BRINGS IT MAY ALSO GET AS CONTENTIOUS AS MR LORENZO'S LAST FORAY IN THE AIRLINE INDUSTRY LAST WEEK THE ADMINISTRATIVE LAW JUDGE HEARING THE CASE ROBERT BARTON ACCUSED MR LORENZO'S LAWYER ROBERT BECKMAN OF BEING UNRULY FOR REFUSING TO SUBMIT CERTAIN DOCUMENTS MR BECKMAN SAYS THE DOCUMENTS ARE UNDER SEAL AND HE CAN'T SUBMIT THEM JUDGE BARTON SUSPENDED THE SCHEDULE FOR THE UNIONS TO FILE THEIR PORTION OF THE CASE LEADING OBSERVERS TO SUSPECT THAT HE MIGHT RULE AGAINST MR LORENZO'S BID WITHOUT HEARING THE REMAINING INTERVENORS MR LORENZO'S LAWYERS LAST THURSDAY FILED PAPERS WITH THE UNITED STATES COURT OF APPEALS IN WASHINGTON DC TO HALT THE PROCESS SAYING THAT ANY DOT DECISION WOULD BE TAINTED BECAUSE IT WOULD HAVE RESULTED FROM CONGRESSIONAL PRESSURE THEY ALSO SAY THE HEARINGS PROCESS ITSELF IS INCONSISTENT WITH THE DOT'S OWN RULES AND REGULATIONS THE APPEALS COURT GAVE THE DEPARTMENT UNTIL 4 PM TODAY TO RESPOND BUT DIDN'T CALL OFF THE HEARING ITSELF 9306280065 930628 AZERBAIJANIS HALT TALKS ON CASPIAN SEA OIL PROJECT HOUSTON AZERBAIJAN'S STATERUN OIL COMPANY SUSPENDED TALKS WITH A GROUP OF WESTERN COMPANIES OVER THE MULTIBILLIONDOLLAR PLAN TO DEVELOP A CASPIAN SEA OILFIELD BECAUSE OF THE COUNTRY'S CIVIL UNREST THE WESTERN PARTNERS AND THE STATE OIL CO OF AZERBAIJAN OR SOCAR WERE TO HOLD TALKS LAST WEEK IN LONDON TO NEGOTIATE A PRODUCTIONSHARING AGREEMENT BUT THE MEETINGS WERE DEFERRED A SPOKESMAN FOR AMOCO CORP ONE PARTNER SAID THE BREAK IS TO ALLOW SOCAR TO CONSULT WITH THE GOVERNMENT ON HOW TO PROCEED REBEL FORCES IN RECENT WEEKS HAVE ADVANCED ON THE COUNTRY'S CAPITAL BAKU AND PRESIDENT ABULFAZ ELCIBEY HAS FLED IT REMAINS UNCLEAR WHO IS RUNNING THE COUNTRY THE UNREST LED SEVERAL OF THE WESTERN COMPANIES TO EVACUATE PERSONNEL FROM BAKU DESPITE THE POLITICAL CHAOS SEVERAL OIL COMPANIES LAST WEEK EXPRESSED OPTIMISM THAT TALKS WOULD PROCEED SWIFTLY AND THAT THE LATEST POLITICAL DEVELOPMENTS WOULDN'T AFFECT THEIR PLANS BEFORE THE UNREST WESTERN COMPANIES INCLUDING AMOCO PENNZOIL CO BRITISH PETROLEUM CO UNOCAL CORP NORWAY'S STATERUN OIL COMPANY AND MCDERMOTT INTERNATIONAL INC AGREED WITH SOCAR TO JOINTLY DEVELOP THREE FIELDS IN THE CASPIAN SEA WITH ESTIMATED OIL RESERVES OF 44 BILLION BARRELS THERE WERE RUMORS THAT THIS JOINT DEVELOPMENT AGREEMENT HAD BEEN RESCINDED THE AMOCO SPOKESMAN SAID WE HAVE NOT BEEN OFFICIALLY NOTIFIED OF THAT 9306280064 930628 LETTERS TO THE EDITOR EARNING THEIR BREAD WITH DIGNITY IRVING KRISTOL'S JUNE 14 EDITORIAL PAGE ARTICLE A CONSERVATIVE WELFARE STATE OFFERS SUGGESTED REFORMS OF THE WELFARE SYSTEM SOME OF WHICH MIRROR THE DIRECTION IN WHICH NEW YORK AND OTHER STATES HAVE ALREADY BEGUN TO MOVE I AGREE FOR EXAMPLE WITH MR KRISTOL THAT IT IS IMPORTANT TO DISCOURAGE TEENAGE WOMEN FROM HAVING CHILDREN OUT OF WEDLOCK AND THAT WELFARE POLICES SHOULD NOT MAKE IT EASY FOR TEEN MOTHERS TO ESTABLISH SEPARATE HOUSEHOLDS BUT MR KRISTOL IS WRONG WHEN HE IMPLIES THAT TEENAGE WOMEN BECOME MOTHERS IN ORDER TO GET MORE FROM WELFARE THAN WHAT THEY COULD EARN BY WORKING THE EMPIRICAL STUDIES CONDUCTED TO DATE SHOW THAT THE AVAILABILITY AND LEVELS OF WELFARE HAVE VIRTUALLY NO IMPACT ON BIRTH RATES OF UNMARRIED WOMEN THE RESEARCH INSTEAD INDICATES THAT THE REASONS YOUNG WOMEN HAVE BABIES ARE FAR MORE COMPLEX AND RELATE TO EMOTIONAL NEEDS AND EDUCATIONAL ISSUES RATHER THAN FINANCIAL CONCERNS FOR THESE REASONS NEW YORK HAS INVESTED ITS RESOURCES IN PREVENTION ACTIVATION SUCH AS OUR ADOLESCENT PREGNANCY PREVENTION AND TEENAGE SERVICES ACT PROGRAMS I HAVE FOR THE PAST THREE YEARS PROPOSED LEGISLATION THAT WOULD REQUIRE CHILDREN UNDER THE AGE OF 18 TO RESIDE WITH THEIR PARENTS AS A CONDITION OF WELFARE ELIGIBILITY INSTEAD OF PENALIZING YOUNG MOTHERS THIS PROPOSAL IS DESIGNED TO DISCOURAGE THE BREAKUP OF FAMILIES AND REAFFIRM THE PRINCIPLE THAT PARENTS ARE RESPONSIBLE FOR THE FINANCIAL SUPPORT OF THEIR MINOR CHILDREN IT SEEMS SOMEWHAT PARADOXICAL THAT MR KRISTOL RECOMMENDS INCREASING THE INCOME TAX DEDUCTION FOR CHILDREN AND YET IS COMPLETELY SILENT ON WHAT MANY SOCIAL RESEARCHERS WOULD AGREE IS PERHAPS THE SINGLE LARGEST CONTRIBUTING FACTOR TO WELFARE DEPENDENCY THE LACK OF ADEQUATE CHILD SUPPORT FROM NONCUSTODIAL PARENTS MR KRISTOL ALSO PROPOSES THAT ABLEBODIED AND MENTALLY HEALTHY MALES HAVE NO ENTITLEMENT TO WELFARE IMPLYING THAT THEIR OWN BEHAVIOR IS RESPONSIBLE FOR THEIR DEPENDENCY AND THAT THEY SHOULD RELY UPON PRIVATE CHARITIES FOR SUPPORT THIS APPEARS TO PRESUME THAT NATIONAL RECESSIONS PLANT CLOSINGS AND LAYOFFS HAVE NO BEARING ON AN INDIVIDUAL'S ABILITY TO FIND WORK I AM IN FULL AGREEMENT WITH THE PRINCIPLE THAT THOSE WHO CAN WORK SHOULD WORK BUT UNTIL OUR ECONOMY IS ABLE TO PROVIDE A JOB FOR EVERYONE WHO WANTS ONE WE CANNOT SIMPLY IGNORE THOSE WHO ARE WILLING BUT UNABLE TO FIND WORK I BELIEVE THE ANSWERS TO OUR COMPLEX SOCIAL PROBLEMS CAN BE FOUND IN THE DEVELOPMENT OF SYSTEMS THAT ALLOW PEOPLE TO EARN THEIR BREAD WITH DIGNITY WITH OPPORTUNITIES TO WORK EITHER IN THE PRIVATE SECTOR OR IN PUBLIC BENEFIT JOBS SUCH AS THOSE CREATED BY NEW YORK'S WORKING TOWARD INDEPENDENCE PROGRAM WE MUST ESTABLISH A SYSTEM THAT DIGNIFIES AND REWARDS BEHAVIOR CONSISTENT WITH OUR SHARED VALUES AND NORMS PROGRAMS SUCH AS THE FEDERAL EARNED INCOME TAX CREDIT AND NEW YORK'S CHILD ASSISTANCE PROGRAM ARE GOOD EXAMPLES OF APPROACHES THAT REINFORCE POSITIVE BEHAVIOR AND ESTABLISH THE KIND OF SOCIAL CONTRACTS THAT GOVERNMENT SHOULD BE MAKING WITH WELFARE RECIPIENTS 9306280063 930628 LETTERS TO THE EDITOR SAME OLD VINO IN A NEW BOTTLE IN HIS MAY 27 COUNTERPOINT LESSONS FROM THE SAN DIEGO SPRAWL PETER NAVARRO DISAVOWS GROWTH CONTROLS YET HE NOT SO DEFTLY ATTEMPTS TO POUR THIS OLD WINE INTO A NEW BOTTLE THAT HE CALLS GROWTH MANAGEMENT TWO EXAMPLES SHOULD MAKE THIS APPARENT DEFINE WHERE DEVELOPMENT SHALL NOT OCCUR TO PROVIDE OPEN SPACE AND OPPOSITION TO SUBDIVISIONS IN ONE OF THE CITY'S LAST REMAINING OPEN SPACES I STRONGLY SUPPORT PROTECTING ENVIRONMENTALLY SENSITIVE AREAS AND PRESERVING PERMANENTLY A MAXIMUM AMOUNT OF OPEN SPACE THIS SHOULD BE A HIGH PRIORITY OF OUR GOVERNMENTS AT ALL LEVELS THE CITY HAS THE POWER TO DO THIS BY PAYING FAIR COMPENSATION TO THE OWNERS OF THE LAND IT SHOULD DO SO THE FUNDAMENTAL PROBLEM WITH THE PROFESSOR'S PROFFERED APPROACH IS THAT BY SEEKING TO PREVENT ANY REASONABLE USE OF THESE LANDS UNDER THE GUISE OF SOCALLED GROWTH MANAGEMENT HE REALLY ADVOCATES TAKING FROM PRIVATE OWNERS THEIR PROPERTY WITHOUT PAYING THEM MR LEGRO IS A FORMER ASSISTANT ADMINISTRATOR OF THE US ENVIRONMENTAL PROTECTION AGENCY MR NAVARRO'S IDEAS FOR GROWTH MANAGEMENT OF URBAN AREAS MAY SOUND GOOD IN THEORY BUT IN THE REAL WORLD THEY JUST DON'T REFLECT THE CHOICES AMERICANS ARE MAKING ABOUT WHERE THEY WANT TO WORK AND LIVE AMERICANS ARE CHOOSING TO LIVE IN THE SUBURBS BECAUSE THEY WANT TO GET AWAY FROM THE CRIME NOISE POLLUTION AND OBSCENE TAXES ENDEMIC TO THE CITIES AS A RESULT PEOPLE AND JOBS ARE MORE DISPERSED THAN EVER WITH THE OUTER SUBURBS GROWING FASTER THAN OLD DOWNTOWNS THIS DISPERSAL LEADS TO MORE HOUSING DEVELOPMENTS SHOPPING CENTERS SCHOOLS AND MEDICAL FACILITIES IN THE SUBURBS AND BY EXTENSION INCREASED HIGHWAY TRAVEL THEREFORE GOVERNMENT POLICY MAKERS SHOULD BE LOOKING AT MAKING HIGHWAY TRAVEL MORE EFFICIENT AND IMPROVING TRAFFIC MANAGEMENT NOT IMPOSING DRIVING RESTRICTIONS AS SOLUTIONS TO INCREASED HIGHWAYTRAVEL DEMAND HIGHWAY TRAVEL IS NOT AN END BUT A MEANS TO A BETTER LIFE BECAUSE PEOPLE ARE MAKING INDIVIDUAL CHOICES TO LIVE AND WORK FARTHER FROM THE CITY PUBLIC POLICIES SHOULD MIRROR PUBLIC SENTIMENT NOT ATTEMPT TO CONTROL HOW PEOPLE LIVE GROWTH MANAGEMENT IS INNOCUOUS SOUNDING BUT LIKE MANY POLITICALLY CORRECT TERMS IN THE 1990S IT IS REALLY A EUPHEMISM FOR MORE GOVERNMENT CONTROL OF PEOPLE'S LIVES THAT'S USUALLY CALLED SOCIAL ENGINEERING 9306280062 930628 ECONOMY NEW YORK FED MAY PROMOTE MCDONOUGH EXOFFICIAL AT FIRST CHICAGO IS LEADING CONTENDER FOR BANK'S PRESIDENCY BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILLIAM MCDONOUGH EXECUTIVE VICE PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK HAS EMERGED AS THE LEADING CONTENDER TO BECOME THE BANK'S PRESIDENT PEOPLE CLOSE TO THE SELECTION PROCESS SAID THE CURRENT NEW YORK FED PRESIDENT E GERALD CORRIGAN WHO IS DUE TO STEP DOWN AUG 20 HAS STRONGLY BACKED MR MCDONOUGH'S CANDIDACY THESE PEOPLE SAY IT WAS MR CORRIGAN WHO NAMED MR MCDONOUGH TO BE HIS DEPUTY AT THE NEW YORK FED IN 1991 MR MCDONOUGH HAD RESIGNED AS VICE CHAIRMAN OF FIRST CHICAGO CORP IN DECEMBER 1989 THE PRESIDENCY OF THE NEW YORK FED WHICH HANDLES THE FEDERAL RESERVE SYSTEM'S INTERNATIONAL OPERATIONS COMMANDS GREAT PRESTIGE AMONG THE OTHER CANDIDATES FOR THE NEW YORK FED JOB HAVE BEEN SUCH SENIOR INSIDERS AS FED VICE CHAIRMAN DAVID MULLINS MINNEAPOLIS FED PRESIDENT GARY STERN AND ST LOUIS FED PRESIDENT THOMAS MELZER SOME PEOPLE CLOSE TO THE SELECTION PROCESS HAD EXPECTED A SUCCESSOR TO MR CORRIGAN TO BE ANNOUNCED AS EARLY AS JUNE 17 DURING A LAVISH FAREWELL DINNER FOR THE DEPARTING PRESIDENT WHAT HAS CAUSED THE DELAY IN NAMING MR MCDONOUGH TO THE JOB ISN'T ENTIRELY CLEAR BUT SOME SUGGEST IT MAY BE QUESTIONS ABOUT MR MCDONOUGH'S TIME AT FIRST CHICAGO WHERE HE WORKED FOR 22 YEARS BEFORE RESIGNING A CONTROVERSIAL INCIDENT IN MR MCDONOUGH'S CAREER AT FIRST CHICAGO OCCURRED IN OCTOBER 1989 MR MCDONOUGH RECEIVED A TIP FROM ANOTHER FORMER FIRST CHICAGO VICE CHAIRMAN NEIL MCKAY THAT THERE MIGHT BE SOMETHING AMISS WITH A LEASE THAT THE BANK WAS NEGOTIATING ON A CHICAGO WAREHOUSE THAT TIP WENT UNHEEDED AND THE LEASE IN QUESTION WAS SIGNED IN NOVEMBER OF 1989 THE LEASE HOWEVER LATER BECAME THE SUBJECT OF A FRAUD CASE AGAINST ONE OF MR MCDONOUGH'S SUBORDINATES JEFFREY TASSANI WHO HEADED THE BANK'S ADMINISTRATION DEPARTMENT MR TASSANI WAS JAILED IN DECEMBER 1991 FOR SEVERAL FRAUDS INCLUDING HIDING HIS TRUE INTEREST IN PROPERTIES LEASED TO THE BANK SUCH AS THE WAREHOUSE AT THE TIME OF MR TASSANI'S SENTENCING US DISTRICT JUDGE ILANA ROVNER WAS EXTREMELY CRITICAL OF FIRST CHICAGO'S MANAGEMENT QUESTIONING HOW SUCH VAST FRAUD COULD GO UNNOTICED A SPOKESMAN FOR THE NEW YORK FED SAID FRIDAY THAT MR MCDONOUGH HAD ACTED PROPERLY IN THE TASSANI AFFAIR AND IMPLIED THAT THE MATTER HAD BEEN LOOKED INTO CAREFULLY BEFORE MR MCDONOUGH TOOK UP HIS RESPONSIBILITIES AT THE NEW YORK FED DESPITE THE TASSANI CASE MR MCDONOUGH HAS MANY STRONG SUPPORTERS IN THE NEW YORK FINANCIAL COMMUNITY AND STILL APPEARS TO BE THE LEADING CANDIDATE LAWRENCE KUDLOW CHIEF ECONOMIST AT BEAR STEARNS & CO FOR EXAMPLE SAYS HE WOULD BE VERY PLEASED IF MR MCDONOUGH GOT THE NEW YORK FED JOB DESCRIBING MR MCDONOUGH AS A PERSONAL FRIEND AND A VERY GOOD GUY MR KUDLOW ADDED HE'S VERY KNOWLEDGEABLE VERY TALENTED AND A GOOD ADMINISTRATOR 9306280061 930628 BUSINESS BRIEF CENTRAL & SOUTH WEST CORP EL PASO ELECTRIC CREDITORS SUPPORT PLAN FOR MERGER CENTRAL & SOUTH WEST CORP DALLAS SAID THE UNSECURED CREDITORS OF FINANCIALLY AILING EL PASO ELECTRIC CO HAVE COMMITTED TO SUPPORT THE UTILITY'S REORGANIZATION PLAN WHICH MAY ALLOW A MERGER OF THE TWO COMPANIES IN MAY CENTRAL & SOUTH WEST AND EL PASO SAID THEY APPROVED A PLAN FOR EL PASO TO BECOME A UNIT OF CENTRAL & SOUTHWEST IN A TRANSACTION VALUED AT 21 BILLION IN NEW STOCK AND SECURITIES THE CENTRAL & SOUTH WEST PROPOSAL APPEARS TO HAVE WON OUT OVER A BUYOUT PLAN BY SOUTHWESTERN PUBLIC SERVICE CO BASED IN AMARILLO TEXAS A COMMITTEE OF EL PASO CREDITORS HAS PEITITIONED THE BANKRUPTCY COURT IN EL PASO TO ALLOW THE MERGER WITH CENTRAL & SOUTHWEST TO PROCEED 9306280060 930628 INTERNATIONAL SEOUL'S EXAIR FORCE CHIEF QUERIED ON F16 PURCHASE SEOUL SOUTH KOREA AP GOVERNMENT INSPECTORS QUESTIONED A FORMER AIR FORCE CHIEF ABOUT ALLEGATIONS THAT HE TOOK BRIBES IN CONNECTION WITH SOUTH KOREA'S PURCHASE OF US F16 JET FIGHTERS FROM GENERAL DYNAMICS CORP THE INSPECTORS WERE INVESTIGATING HAN CHU SOK AIR FORCE CHIEF OF STAFF FROM 1990 TO 1992 TO DETERMINE IF HE TOOK BRIBES AND APPLIED UNDUE PRESSURES ON THE F16 DEAL THE INVESTIGATION IS PART OF THE GOVERNMENT'S INTENSIVE INQUIRY INTO QUESTIONABLE ARMS DEALS PRESIDENT KIM YOUNG SAM HAS PUSHED A SWEEPING ANTICORRUPTION CAMPAIGN THAT HAS LED TO ABOUT 3000 GOVERNMENT OFFICIALS GENERALS POLITICIANS AND BUSINESSMEN BEING FIRED OR REPRIMANDED ONE FOCUS OF THE RECENT INQUIRY IS THE 1991 DECISION ON THE NATION'S NEXT JET FIGHTER SOUTH KOREA ORIGINALLY CHOSE THE MCDONNELL DOUGLAS CORP F/A18 BUT REVERSED ITS DECISION AND DECIDED TO BUY 120 F16S FROM GENERAL DYNAMICS FOR 52 BILLION PAST MILITARYBACKED REGIMES HAVE KEPT MOST MILITARY AFFAIRS UNDER WRAPS DESPITE WIDESPREAD RUMORS ABOUT BRIBES AND KICKBACKS IN MULTIBILLIONDOLLAR ARMS PURCHASES FINANCIAL TRANSACTIONS OF FORMER GENERALS AND ARMS DEALERS HAVE NOW COME UNDER SCRUTINY 9306280058 930628 WHO'S NEWS CAMPBELL SOUP SHIFTS SEVEN EXECUTIVES IN SENIOR MANAGEMENT REORGANIZATION BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL CAMDEN NJ CAMPBELL SOUP CO ANNOUNCED A REORGANIZATION OF ITS SENIOR MANAGEMENT TEAM THAT PUTS NEW EMPHASIS ON THE COMPANY'S INTERNATIONAL BUSINESS THE CHANGES INVOLVING THE PROMOTION OF SEVEN TOP MANAGERS COME AMID A STREAMLINING EFFORT AND FOLLOW THE RESIGNATION THIS MONTH OF HERBERT M BAUM AS PRESIDENT OF CAMPBELL'S NORTH AND SOUTH AMERICAN UNITS THE COMPANY'S NO 2 POST MR BAUM LEFT TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF QUAKER STATE CORP ASSUMING A BIG CHUNK OF MR BAUM'S FORMER JOB F MARTY THRASHER 42 YEARS OLD WAS NAMED PRESIDENT US SOUP MR THRASHER FORMERLY SECTOR VICE PRESIDENT FOR SOUP ASSUMES RESPONSIBILITY FOR CAMPBELL'S FLAGSHIP SOUP BRANDS INCLUDING THE CHUNKY AND HEALTHY REQUEST LABELS AS WELL AS CAMPBELL'S SALES FORCE ALFRED POE 44 WAS NAMED PRESIDENT MEAL ENHANCEMENT GROUP MR POE FORMERLY SENIOR VICE PRESIDENT CONDIMENTS & SAUCES WILL OVERSEE VLASSIC PICKLES PREGO SPAGEHETTI SAUCE MARIE'S SALAD DRESSING AND OPEN PIT BARBEQUE SAUCE AS WELL AS CAMPBELL'S FOOD SERVICE UNIT KATHLEEN MACDONNELL 44 WAS NAMED PRESIDENT OF THE FROZEN FOODS GROUP FORMERLY SECTOR VICE PRESIDENT FROZEN FOODS MS MACDONNELL WILL SUPERVISE THE SWANSON LE MENU AND MRS PAUL'S BRANDS ROBERT F BERNSTOCK 42 WHO HEADED THE COMPANY'S CANADIAN OPERATIONS WAS NAMED PRESIDENT INTERNATIONAL SOUP ADDING TO HIS CHARGE CAMPBELL'S BUSINESSES IN MEXICO AUSTRALIA HONG KONG AND CHINA MR BERNSTOCK WILL ALSO OVERSEE GLOBAL MARKETING EFFORTS ROBERT SUBIN 55 WAS NAMED PRESIDENT INTERNATIONAL SPECIALITY FOODS ADDING ARGENTINA TO A PORTFOLIO THAT HAS INCLUDED CAMPBELL'S EUROPEAN ASIAN AND CONFECTIONARY BUSINESSES INCLUDING THE GODIVA CHOCOLATE BRAND FRANCIS A DUVERNOIS 60 FORMERLY VICE PRESIDENT NORTH AND SOUTH AMERICAN OPERATIONS BECOMES VICE PRESIDENT GLOBAL OPERATIONS GARY S MOSS 44 FORMERLY VICE PRESIDENT MARKETING COMMUNICATIONS WAS NAMED VICE PRESIDENT GLOBAL ADVERTISING DAVID W JOHNSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE REORGANIZATION WILL FOCUS OUR BROAD ARRAY OF EXECUTIVE TALENT ON BUILDING AND DRIVING A TRULY GLOBAL BRANDED POWERHOUSE THE NEW EXECUTIVES WILL ALL REPORT DIRECTLY TO MR JOHNSON EARLIER THIS YEAR CAMPBELL SAID IT WOULD SELL A HOST OF NONSTRATEGIC UNITS AND CLOSE SEVERAL FACILITIES OVER THE NEXT SEVERAL YEARS TO CUT COSTS AND BETTER FOCUS THE COMPANY'S BUSINESS LAST MONTH THE COMPANY REPORTED A 19 INCREASE IN THIRDQUARTER EARNINGS TO 1085 MILLION OR 43 CENTS A SHARE SALES IN THE QUARTER ENDED MAY 2 ROSE 6 TO 163 BILLION 9306280057 930628 INTERNATIONAL EXECUTIVE OF NISSAN UK IS CONVICTED OF TAX FRAUD LONDON THE MANAGING DIRECTOR OF NISSAN UK LTD WAS CONVICTED ON ONE OF TWO COUNTS OF TAX FRAUD IN THE LARGEST SUCH CASE EVER IN BRITAIN THE GOVERNMENT ALLEGED THAT MICHAEL HUNT 59 YEARS OLD FRAUDULENTLY EVADED TAXES OF 56 MILLION 823 MILLION OVER NINE YEARS HE FACES SENTENCING ON WEDNESDAY ALONG WITH FRANK SHANNON ALSO 59 FORMER FINANCIAL DIRECTOR AND COMPANY SECRETARY OF NISSAN UK WHICH UNTIL RECENTLY WAS THE COUNTRY'S LARGEST CAR IMPORTER MR SHANNON ADMITTED TAX FRAUD MR HUNT WAS FREED ON BAIL PENDING THE SENTENCE PROSECUTORS SAID THE COMPANY'S FORMER CHIEF OCTAV BOTNAR 80 DIRECTED THE FRAUD MR BOTNAR ALSO WAS CHARGED BUT FLED TO SWITZERLAND TWO YEARS AGO MR HUNT HAD PLEADED NOT GUILTY TO TWO COUNTS OF CONSPIRACY TO DEFRAUD THE GOVERNMENT TAX DEPARTMENT OVER A 17YEAR PERIOD HE WAS CLEARED OF THE FIRST COUNT BUT WAS FOUND GUILTY OF THE SECOND COUNT WHICH COVERED DECEMBER 1982 TO DECEMBER 1991 THE JUDGE ALSO DIRECTED A VERDICT OF GUILTY ON ONE COUNT OF CONSPIRACY TO MAKE USE OF FALSE DOCUMENTS MR BOTNAR'S COMPANY FOUNDED AS DATSUN UK WON AN EXCLUSIVE FRANCHISE IN 1971 TO IMPORT CARS MADE BY JAPAN'S NISSAN MOTOR CO NISSAN UK LOST THE FRANCHISE IN 1991 PROSECUTORS SAID THE FRAUD INVOLVED A SHAM COMPANY IN NORWAY THAT CREATED DOCUMENTATION ALLOWING THE COMPANY TO EVADE TAXES ON 219 MILLION IN INCOME 9306280056 930628 LEISURE & ARTS A DAY AT THE RACES BY SUSAN G HAUSER PORTLAND ORE MY NINEYEAROLD DAUGHTER MERIWETHER LOUISE WAS NAMED AFTER AN EXPLORER WHO PERFORMED FEATS AT LEAST AS DARING AS CROSSING A POND ON A BOAT MADE OUT OF MILK CARTONS SO IT SEEMED LOGICAL FOR HER TO BE THE ONE NAVIGATING OUR FAMILY'S ENTRY IN THE 21ST ANNUAL PORTLAND ROSE FESTIVAL MILKCARTON BOAT RACE BESIDES MERIWETHER WEIGHS 50 POUNDS LESS THAN HER BIG BROTHER AND SOMEWHAT LESS THAN ME TOO YOU NEED ONE MILK CARTON FOR EVERY FOUR POUNDS WE LEARNED BUT AS RACE DAY APPROACHED IT LOOKED LIKE WE MIGHT NOT EVEN HAVE ENOUGH TO SUPPORT THE LIGHTEST MEMBER OF THE FAMILY THE DAY WE DECIDED TO PREPARE FOR THE RACE MOST OF MY HALFGALLON PAPER MILK CARTONS THE REQUIRED MATERIAL WERE ALREADY SQUISHED AND AWAITING RECYCLING BUT WE WOULD NEED AT LEAST 17 UNSQUISHED CARTONS JUST TO KEEP MERIWETHER AFLOAT OUR MARATHON MILKDRINKING CAMPAIGN BEGAN FOR A CHANGE I ENCOURAGED MY KIDS TO DROWN THEIR CEREAL IN MILK AND EVEN TO CHUGALUG TALL GLASSES OF MILK WITH CHOCOLATE FLAVOR MIXED IN AS AN AFTERSCHOOL TREAT AN AFTERDINNER TREAT AND A BEDTIME SNACK AT OUR HOUSE CUSTARD PIES WERE ON THE MENU EVERY DAY I TRIED NOT TO THINK ABOUT THE CHOLESTEROL BUT FIGURED I'D NEVER HAVE TO WORRY ABOUT OSTEOPOROSIS AGAIN A WEEK BEFORE THE EVENT WE HAD FIVE COUNT 'EM FIVE MILK CARTONS I FELT GUILTY ABOUT MY DERELICTION OF DUTY BUT IT WAS AT THAT CRITICAL POINT THAT I TOOK A BREAK FROM MILK DRINKING AND WENT OFF TO VISIT A COUPLE OF OREGON WINERIES I KNEW I SHOULD HAVE BEEN BACK HOME KNOCKING ON THE NEIGHBORS' DOORS OR POSTING SIGNS AT THE GROCERY STORE BEGGING FOR MORE MILK CARTONS AT ONE WINERY I TRIED TO KEEP MY MIND OFF MILK AS THE OWNER SHOWED ME SOME BEFOREANDAFTER PHOTOS OF HIS VINEYARD BUT HIS BEFORE PICTURE WAS OF THOUSANDS AND THOUSANDS OF UPRIGHT MILK CARTONS DOTTING THE FIELDS HE EXPLAINED THAT CARTONS PROTECT THE SEEDLINGS FROM THE ELEMENTS SLYLY I ASKED DID YOU DRINK ALL OF THAT MILK HE INNOCENTLY REVEALED TO ME HOW I TOO COULD PROCURE THOUSANDS OF MILK CARTONS THAT ARE REJECTED BY THE FACTORY BECAUSE OF PRINTING ERRORS OR OTHER MINOR PROBLEMS AND ARE THEN OFFERED CHEAP TO WINEMAKERS THE NEXT DAY MERIWETHER AND I DROVE TO THE MILKCARTON FACTORY IN VANCOUVER WASH AND PRETENDED TO BE WINEMAKERS I TOLD MERIWETHER TO CLAM UP AND NOT REVEAL OUR TRUE INTENTIONS JUST IN CASE THERE IS A LAW ABOUT CROSSING STATE LINES TO PROCURE MILK CARTONS FOR RACES WE MADE OFF WITH A CASE OF 300 CARTONS THAT WOULD BE ENOUGH TO HOLD EVEN ME BUT I'D ALREADY PAID MERIWETHER A BRIBE SO SHE COULDN'T BACK OUT UNFORTUNATELY THE BARGAIN MILK CARTONS WERE TOTALLY FLAT OUR SOLUTION WAS TO SECURE THE TOPS AND BOTTOMS BY USING HOTGLUE GUNS WE GLUED AND TOSSED GLUED AND TOSSED UNTIL A MOUNTAIN OF MILK CARTONS FILLED OUR LIVING ROOM WE STOPPED WHEN WE HAD 60 CARTONS ALL WITH PRINTING CLAIMING THAT THE CARTONS CONTAINED LOWFAT MILK FROM A DAIRY IN DUBLIN CALIF WHEREVER THAT IS IF A RACE OFFICIAL WERE TO INQUIRE ABOUT OUR CARTONS' ORIGIN WE WERE PREPARED TO SAY WE HAD JUST RETURNED FROM A LONG CALIFORNIA VISIT AND THAT WE DRANK MILK TO BEAT THE HEAT OUR BOAT DESIGN WAS A SURE WINNER IN THIS 150TH ANNIVERSARY YEAR OF THE OREGON TRAIL IT WAS A COVERED WAGON AND MERIWETHER WORE THE PRAIRIEGIRL DRESS AND BONNET I'D MADE FOR HER SCHOOL PROGRAM FOR HER BROTHER CORY I FASHIONED A HEADBAND WITH FABRIC HORNS SO HE COULD PRETEND TO BE AN OX AND PULL THE WAGON ACROSS THE POND RACE DAY ARRIVED AND WE WERE READY AT THE POND'S EDGE WE UNLOADED OUR BOAT FROM THE CAR THEN COVERED IT WITH A TARP TO HIDE IT FROM VIEW BEFORE OUR RACE WE STROLLED AROUND THE POND SMUGLY NOTING THAT NONE OF THE BOATS WAS QUITE AS CHARMING AS OURS WE WATCHED THE RACES LEADING UP TO OURS AND CLUCKED WITH PITY AS A FEW POORLY CONSTRUCTED BOATS FOUNDERED IN THE WATER WHICH WAS THREE FEET DEEP WE CHECKED OUT THE MILK CARTONS THAT KEPT THE OTHER BOATS AFLOAT TO SEE IF ANY WERE FROM OUT OF TOWN LIKE OURS THE ONLY ENTRY WE CONSIDERED SUSPICIOUS WAS THE BOAT MADE FROM DOZENS OF HALFGALLON WHIPPINGCREAM CARTONS AFTER SEEING THAT I WASN'T SO WORRIED ABOUT MY FAMILY'S CHOLESTEROL THEN IT WAS TIME FOR THE SHOWBOAT CATEGORY I HELPED THE KIDS LAUNCH OUR PRAIRIE SCHOONER THEN WALKED BRISKLY TOWARD THE JUDGES' STAND SO I COULD BE THERE WHEN THE JUDGES BEHELD OUR BOAT AND AWARDED US THE TOP PRIZE THE SPECTATORS' HYSTERICAL LAUGHTER MADE ME TURN AROUND THERE WAS MY BRAVE LITTLE DAUGHTER'S FACE PEEKING OUT FROM HER SOPPING SUN BONNET WHILE SHE HELD ON TO THE FRAME OF OUR BOAT FOR DEAR LIFE MILK CARTONS WERE POPPING OUT OF IT LEFT AND RIGHT CORY WAS TRYING TO KEEP MERIWETHER FROM SLIDING COMPLETELY INTO THE MURKY WATER BUT HIS EFFORTS DRENCHED HIS OX HORNS SO THEY DROOPED FROM HIS HEAD LIKE A JESTER'S CAP TRAILING BEHIND OUR BOAT OR WHAT WAS LEFT OF IT WAS THE COVER FOR OUR COVERED WAGON MERIWETHER HAD CAREFULLY PAINTED A MESSAGE ON THE FABRIC AND NOW AS IT SWIRLED IN THE WATER IT WAS HARD TO MAKE OUT THE WORDS OREGON OR BUST TO COMPLETE OUR HUMILIATION THE ANNOUNCER READ IT ALOUD TO THE CROWD THEN COMMENTED WELL IT LOOKS LIKE THEY MADE THEIR CHOICE ONLOOKERS AVERTED THEIR EYES WHEN MY CHILDREN EMERGED FROM THE POND TO HAUL THE REMAINS OF THE BOAT TO DRY LAND BY THIS TIME CORY'S OX HORNS WERE AROUND HIS NECK POOR BEDRAGGLED MERIWETHER LOOKED LIKE SHE'D SURVIVED ABOUT FOUR MONTHS OF MONSOONS ALONG THE OREGON TRAIL FINALLY ONE SYMPATHETIC WOMAN APPROACHED US AND MANAGED TO SUM IT ALL UP IT WAS A GREAT CONCEPT SHE SAID I'LL DRINK TO THAT MS HAUSER IS A WRITER IN PORTLAND ORE 9306280055 930628 INTERNATIONAL RUSSIA'S ECONOMY SHOWS SIGNS OF TURNAROUND AS INFLATION EASES ADVISERS TO GOVERNMENT SEE PROGRESS FROM REFORMS PRODUCTION IS STABILIZING BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE FEELING IS GROWING AMONG FOREIGN AND RUSSIAN ECONOMISTS THAT THE RUSSIAN ECONOMY IS STARTING TO TURN AROUND DIFFICULTIES ARE FAR FROM OVER BUT INFLATION FIGURES PRODUCTION LEVELS AND COMMERCIALBANK LENDING ACTIVITY ARE POINTING IN THE RIGHT DIRECTION THE SITUATION IS IMPROVING SINCE THE BEGINNING OF THE YEAR SAYS RICHARD LAYARD A LONDON SCHOOL OF ECONOMICS PROFESSOR AND ADVISER TO THE RUSSIAN GOVERNMENT WE'RE NOW SEEING A POLICY PUT TOGETHER TO DEAL WITH INFLATION IN A SERIOUS WAY OVER THE REST OF THIS YEAR MOREOVER PRODUCTION LEVELS IN RUSSIA'S FACTORIES HAVE BEEN STEADY SINCE SEPTEMBER AND ARE RISING IN CERTAIN SECTORS SAYS ANDREI ILLARIONOV AN ECONOMIST AT RUSSIA'S CENTER FOR ECONOMIC REFORM AND AN ADVISER TO THE PRIME MINISTER IT'S THE REAL START OF REAL STRUCTURAL CHANGES IN THE ECONOMY HE SAYS MONTHLY INFLATION WHICH WAS RUNNING ABOUT 25 UNTIL FEBRUARY DROPPED TO 19 IN MAY RUSSIA HAS STAVED OFF HYPERINFLATION WHICH HAS BEEN THE MAIN ECONOMIC THREAT OVER THE LAST YEAR WRITES ANDERS ASLUND DIRECTOR OF THE STOCKHOLM INSTITUTE OF EAST EUROPEAN ECONOMICS IN A REPORT THIS MONTH FURTHER HE ARGUES THAT THE REAL DECLINE IN GROSS DOMESTIC PRODUCT IN 1992 OFFICIALLY PUT AT 19 WAS PROBABLY ABOUT 7 BASED ON SUCH MEASURES AS THE DECREASE IN CONSUMPTION OF ELECTRICITY GDP MEASURES THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY AN ECONOMY SINCE SEPTEMBER INDUSTRIAL PRODUCTION HAS HOVERED AT ABOUT 80 OF ITS LEVEL IN DECEMBER 1991 BEFORE RUSSIA'S ECONOMIC REFORM PROGRAM WAS LAUNCHED BOLSTERED BY PRESIDENT BORIS YELTSIN'S VICTORY IN THE APRIL 25 REFERENDUM AND IN PARTICULAR THE HIGHERTHANEXPECTED LEVEL OF SUPPORT FOR HIS POLICIES THE GOVERNMENT IS IN POSITION TO PRESS AHEAD WITH REFORMS OPTIMISTIC ECONOMISTS SAY THE REFERENDUM WAS THE MOST IMPORTANT POLITICAL EVENT IN RUSSIA SINCE THE CHANGE OF ECONOMIC SYSTEM WAS INITIATED AT THE END OF 1991 WRITES MR ASLUND THE CATASTROPHIC SCENARIOS OF DISINTEGRATION HYPERINFLATION OR A MILITARY COUP ARE NO LONGER PLAUSIBLE THE NEW POLITICAL CONFIDENCE HAS LED TO A NUMBER OF MOVES THAT INSPIRE A POSITIVE INFLATION OUTLOOK THE TIGHTENING OF NEW CREDITS ISSUED BY THE CENTRAL BANK THE RAISING OF INTEREST RATES AND PLEDGES TO CURTAIL BUDGET SPENDING CENTRAL BANK CREDIT ISSUED TO SUPPORT FACTORIES AND OTHER BUSINESSES LAST YEAR TOTALED 26 OF NATIONAL INCOME FOR THE SECOND HALF OF THIS YEAR IT IS FORECAST AT ABOUT 6 SAYS MR LAYARD AT THE SAME TIME SOME OF THE SQUEEZE ON ENTERPRISES WILL EASE AS COMMERCIAL BANKS STEP UP THEIR LENDING THE DANGER OF A BUILDUP OF RESERVES IN THESE BANKS HAS BEEN LOOMING THIS YEAR THREATENING TO TIP RUSSIA INTO RUNAWAY INFLATION IF A FLOOD OF LENDING SUDDENLY OCCURRED NOW BANKS ARE STARTING TO LEND MORE AND THOSE RESERVES ARE DROPPING AT THE END OF 1992 SURPLUS RESERVES CAME TO 43 OF TOTAL DEPOSITS IN ADDITION TO THE 20 RESERVE REQUIREMENTS BY JUNE 1 THE SURPLUS WAS ABOUT 20 MR ILLARIONOV SAYS LAST WEEK THE CENTRAL BANK RAISED ITS INTEREST RATE FOR LENDING TO COMMERCIAL BANKS FOR THE THIRD TIME IN THREE MONTHS THE INCREASE TO 120 FROM 110 IS IN LINE WITH AN AGREEMENT SIGNED LAST MONTH WITH THE GOVERNMENT WHICH CALLED FOR THE BANK TO CURB CREDITS TO ENTERPRISES AND INCREASE THE DISCOUNT RATE TO NEAR THE COMMERCIAL BANKS' OWN LENDING LEVEL OF ABOUT 150 THAT AGREEMENT WAS A PREREQUISITE TO RECEIVING SOME 3 BILLION IN INTERNATIONAL MONETARY FUND ASSISTANCE OTHER STEPS HAVE BEEN TAKEN THAT INDICATE A COMMITMENT TO OBSERVING THE AGREEMENT A PLANNED REDUCTION IN IMPORT SUBSIDIES FOR EXAMPLE COULD SAVE THE GOVERNMENT ONE TRILLION RUBLES 938 MILLION IN THE SECOND HALF MR LAYARD SAYS LAST WEEK PRIME MINISTER VIKTOR CHERNOMYRDIN DECREED THAT ALL MINISTRIES MUST CUT SPENDING 20 IN 1993 EXPORT QUOTAS FOR ENERGY AND CERTAIN OTHER COMMODITIES ARE DUE TO BE RAISED IN SEPTEMBER WHICH SHOULD DRIVE UP THE PRICE OF OIL CLOSER TO WORLD LEVELS AND BRING IN MORE HARD CURRENCY ENERGY PRICES HAVE RISEN CONSIDERABLY IN RUSSIA ALREADY BUT THEY ARE STILL FAR BELOW WORLD LEVELS INDUSTRIAL GAS SELLS FOR 5 OF THE WORLD PRICE AND COAL 4 FOR EXAMPLE PRESIDENT YELTSIN LAST WEEK ANNOUNCED COAL PRICES WOULD BE FREED STARTING JULY 1 A MOVE THAT CAME AFTER A HARD STRUGGLE WITHIN THE GOVERNMENT MR ILLARIONOV SAYS THE PRICE RISE SHOULD EVENTUALLY BE A BIG HELP IN CONTROLLING THE GOVERNMENT'S BUDGET ALSO SAYS MR ILLARIONOV IT WILL LEAD TO STRUCTURAL CHANGES BECAUSE DEMAND FOR COAL AND OTHER FUELS WILL FALL 9306280054 930628 INTERNATIONAL ITALIAN TRADE DEFICIT NARROWS ROME ITALY'S MERCHANDISE TRADE DEFICIT ON A BALANCE OF PAYMENTS BASIS NARROWED TO 1449 TRILLION LIRE 939 MILLION IN APRIL FROM 1590 TRILLION LIRE A YEAR EARLIER THE ITALIAN EXCHANGE OFFICE SAID THE OFFICE SAID THAT THE TRADE DEFICIT WITH OTHER EUROPEAN COMMUNITY COUNTRIES WIDENED TO 1453 TRILLION LIRE IN APRIL FROM 1372 TRILLION A YEAR EARLIER 9306280053 930628 BUSINESS BRIEF U S WEST INC FINANCIAL SECURITY ASSURANCE UNIT TO BE SOLD BY COMPANY U S WEST INC SAID IT PLANS TO SELL ITS U S WEST FINANCIAL SECURITY ASSURANCE UNIT MARKING ITS EXIT FROM THE FINANCIAL SERVICES BUSINESS U S WEST FINANCIAL SECURITY ASSURANCE INSURES MUNICIPAL BONDS AND CORPORATE DEBT THE MUNICIPAL BOND INSURANCE INDUSTRY HAS TURNED IN RECORD RESULTS IN THE PAST SEVERAL YEARS AS MORE MUNICIPALITIES INSURE THEIR DEBT ISSUES TO MAKE THEM MORE ATTRACTIVE TO INVESTORS SEVERAL SUCH INSURERS AND REINSURERS HAVE GONE PUBLIC IN THAT PERIOD CAPITALIZING ON THE INDUSTRY'S STRENGTH FINANCIAL SECURITY ASSURANCE IS TRIPLEARATED BY LEADING RATINGS CONCERNS THE UNIT HAD 1992 REVENUE OF 142 MILLION AND ASSETS AT THE END OF 1992 WERE 930 MILLION ENGLEWOOD COLOBASED U S WEST SAID IT WILL ACCOUNT FOR ITS FINANCIAL SERVICES SEGMENT KNOWN AS CAPITAL ASSETS AS A DISCONTINUED OPERATION AND WILL ESTABLISH AN ADDITIONAL RESERVE OF UP TO 100 MILLION THAT WILL BE REFLECTED IN SECONDQUARTER RESULTS IT ALSO SAID IT IS WEIGHING ALL OPTIONS FOR DISPOSING OF THE FINANCIAL SECURITY ASSURANCE UNIT 9306280052 930628 BUSINESS BRIEF CYPRUS MINERALS CO RESULTS FOR SECONDQUARTER TO INCLUDE 59 MILLION GAIN CYPRUS MINERALS CO SAID ITS SECONDQUARTER RESULTS WILL INCLUDE A 59 MILLION GAIN FROM THE SALE OF BANKRUPTCY CLAIMS AGAINST LTV CORP THE SALES INCLUDE THE FINAL CHUNK OF STOCKS AND WARRANTS HELD BY CYPRUS AS PART OF ITS CLAIM AGAINST LTV THE CLEVELAND STEELMAKER THAT IS IN THE PROCESS OF EMERGING FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION CYPRUS A COPPER AND COAL MINING COMPANY BASED IN DENVER REPORTED A NET LOSS OF 292 MILLION OR 756 A SHARE FOR LAST YEAR'S SECOND QUARTER FOR THE 1992 PERIOD CYPRUS RECORDED A 315 MILLION CHARGE THAT INCLUDED AN 86 MILLION CLAIM OUTSTANDING AGAINST LTV REVENUE FOR THE 1992 SECOND QUARTER WAS 4036 MILLION IN NEW YORK STOCK EXCHANGE TRADING FRIDAY CYPRUS STOCK ROSE 375 CENTS TO 2375 SEPARATELY CYPRUS SAID IT WILL RECORD 16 MILLION IN REVENUE IN THE SECOND QUARTER FROM ITS COPPER PRICE PROTECTION PROGRAM 9306280051 930628 INTERNATIONAL JAPAN UNVEILS PLAN FOR TALKS ON TRADE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN UNVEILED ITS OWN VERSION OF A NEW FRAMEWORK FOR BILATERAL TRADE NEGOTIATIONS WITH THE US ONE THAT ACCORDING TO US OFFICIALS DOESN'T INCLUDE SENSITIVE IMPORT CATEGORIES SUCH AS AUTOS AND AUTO PARTS AND MAKES NO MENTION OF SETTING NUMERICAL MEASURES FOR JAPANESE ECONOMIC PERFORMANCE THE JAPANESE PROPOSAL WHICH NEGOTIATORS PRESENTED TO THEIR US COUNTERPARTS OVER THE WEEKEND SETS THE STAGE FOR SEVERAL TOUGH DAYS OF TALKS AS THE TWO SIDES TRY TO WRAP UP DISCUSSIONS ON THE NEGOTIATING FRAMEWORK IN TIME FOR THE JULY 7 SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL NATIONS IN TOKYO THE SOCALLED FRAMEWORK TALKS NOW STAND AS THE CENTERPIECE OF THE CLINTON ADMINISTRATION'S TRADE POLICY TOWARD JAPAN OVER THE NEXT THREE YEARS US OFFICIALS HOPE TO CUT JAPAN'S CURRENTACCOUNT SURPLUS AS A PERCENTAGE OF ITS GROSS DOMESTIC PRODUCT BY ABOUT HALF AND BOOST JAPAN'S IMPORT OF MANUFACTURED GOODS BY A THIRD THE US HAS TARGETED FIVE SPECIFIC SECTORAL BASKETS FOR IMPORT PROMOTION JAPANESE GOVERNMENT PROCUREMENT FOREIGN DIRECT INVESTMENT AUTOS AND AUTO PARTS FINANCIAL SERVICES AND COMPLIANCE WITH PAST AGREEMENTS THE JAPANESE HOWEVER HAVE OBJECTED STRENUOUSLY TO A US SUGGESTION TO SET UP A SERIES OF STATISTICAL YARDSTICKS FOR MEASURING JAPAN'S MACROECONOMIC AND IMPORT PROGRESS THE DEFINITION OF MSTATISTICAL BENCHMARKS IS VERY VAGUE SAID NOBORU HATAKEYAMA WHO UNTIL LAST FRIDAY WAS JAPAN'S TOP TRADE BUREAUCRAT ANY KIND OF MEASUREMENT MIGHT LEAD TO THE RISK OF MANAGED TRADE THE JAPANESE MADE THE DEPTH OF THEIR OBJECTIONS CLEAR WHEN THEY UNVEILED THEIR COUNTERPROPOSAL WHICH ACCORDING TO US OFFICIALS MADE NO MENTION OF MACROECONOMIC TARGETS AT ALL THE PROPOSAL ALSO SUGGESTS ADDITIONAL TALKS IN FIVE SPECIFIC IMPORT SECTORS BUT MAKES NO MENTION OF AUTOS OR AUTO PARTS FOR INSTANCE AND REJECTS NUMERICAL MEASURES JAPANESE OFFICIALS WEREN'T AVAILABLE TO DISCUSS THE PROPOSAL US NEGOTIATORS WHO ALREADY HAD LOWERED THEIR EXPECTATIONS FOR THE CURRENT DISCUSSIONS AFTER PRIME MINISTER KIICHI MIYAZAWA LOST A VOTE OF CONFIDENCE AND DISSOLVED THE LOWER HOUSE OF THE JAPANESE PARLIAMENT EARLIER THIS MONTH NOW FACE A POTENTIAL IMPASSE OVER BENCHMARKS A CENTRAL PART OF THEIR TRADE STRATEGY NEVERTHELESS OFFICIALS SAID THEY STILL EXPECTED THE TWO SIDES WOULD BE ABLE TO SET OUT THE GENERAL OUTLINE OF THE FORTHCOMING NEGOTIATIONS IN TIME FOR THE G7 SUMMIT ONE SECTOR IN WHICH THE OUTLOOK HAS BRIGHTENED SLIGHTLY IS CONSTRUCTION WITH A DEADLINE FOR RESOLVING A DISPUTE OVER JAPANESE PUBLIC WORKS PROJECTS APPROACHING AT THE END OF THE MONTH US OFFICIALS SAID THEY HAVE RECEIVED A NEW JAPANESE PROPOSAL AND EXPECT SIGNIFICANT PROGRESS BEFORE THE DEADLINE THEY DECLINED TO PROVIDE DETAILS SEPARATELY JAPAN FRIDAY DISCLOSED ITS NEW FIVEYEAR PLAN FOR OVERSEAS DEVELOPMENT ASSISTANCE WHICH IT EXPECTS TO TOTAL 70 BILLION TO 75 BILLION IN DIRECT AID AND ANOTHER 50 BILLION IN LOANS AND OTHER CREDITS FROM 1993 TO 1997 9306280050 930628 MERGER OF PSI CINCINNATI GAS HITS ROADBLOCK REGULATORS DISMISS REQUEST TO FORM COMPANY IPALCO CONTINUES BID BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS INDIANA REGULATORS THREW ANOTHER ROADBLOCK IN PSI RESOURCES INC'S EFFORT TO MERGE WITH CINCINNATI GAS & ELECTRIC CO THE INDIANA UTILITY REGULATORY COMMISSION DISMISSED THE PLAINFIELD IND UTILITY'S REQUEST FOR CLEARANCE TO EFFECT THE MERGER AND FORM A NEW OHIOBASED COMPANY KNOWN AS CINERGY THE PANEL'S ACTION DOESN'T PERMANENTLY KILL THE TWO UTILITIES' PLANS TO UNITE PSI WAS GRANTED 30 DAYS TO REMEDY THE LARGELY TECHNICAL GROUND ON WHICH ITS REQUEST WAS DISMISSED AND REFILE A NEW APPLICATION BUT IT SLOWS THE MOMENTUM PSI AND CINCINNATI GAS ARE SEEKING TO MAINTAIN AS IPALCO ENTERPRISES INC PRESSES AHEAD WITH ITS ALTERNATIVE HOSTILE 15 BILLION BID FOR PSI INDEED IT WAS PSI'S UNWANTED SUITOR WHICH THREW THE WRENCH INTO THE REGULATORY PROCEEDING INVOLVING PSI AND CINCINNATI GAS IPALCO HAD BEEN GRANTED INTERVENOR STATUS IN THE HEARINGS AND IT ARGUED THAT INDIANA LAW REQUIRES A STATE UTILITY TO TRANSFER ITS PLANT OR EQUIPMENT ONLY TO AN INSTATE COMPANY THE COMMISSION AGREED WITH IPALCO'S MOTION TO DISMISS THE PSI PETITION BECAUSE CINERGY IS AN OHIO CORPORATION AND THUS PRECLUDED FROM RECEIVING THE PSI UTILITY PROPERTY AND OPERATING AUTHORITY THE REGULATORS EMPHASIZED THAT ITS RULING IS BASED ON A PURELY LEGAL ISSUE AND SHOULD NOT BE CONSTRUED AS A COMMISSION DETERMINATION OR INDICATION FOR OR AGAINST THE MERITS OF THE PROPOSED MERGER IPALCO CROWED THAT AS A RESULT OF THIS DECISION THERE IS ONLY ONE PROPOSAL LEFT ON THE TABLE THAT IS LEGALLY PERMISSIBLE THE COMBINATION OF IPALCO AND PSI THROUGH ITS 2650ASHARE CASHANDSTOCK TENDER OFFER THE RULING UNMISTAKABLY REPRESENTS ANOTHER SETBACK FOR PSI EARLIER THIS MONTH A FEDERAL COURT RULED THAT THE UTILITY CAN'T DEFER ITS ANNUAL MEETING UNTIL SEPTEMBER AS IT HAD BEEN SEEKING THAT DECISION WILL ALLOW IPALCO TO PUT UP LATE NEXT MONTH A SLATE OF FIVE PROIPALCO REPRESENTATIVES FOR POSSIBLE ELECTION TO PSI'S 15MEMBER BOARD BUT THE COMMISSION'S ACTION APPEARS LIKELY TO BE SOMETHING LESS THAN THE DISABLING BLOW THAT IPALCO DEPICTED PSI SAID IT REMAINS COMMITTED TO THE STRATEGIC ALLIANCE WITH CINCINNATI GAS WHILE IT SAID OFFICIALLY ONLY THAT IT IS REVIEWING ALL OPTIONS REGARDING THE COMMISSION'S ORDER THOSE MOST LIKELY APPEAR TO BE EITHER AN APPEAL TO THE COURT SYSTEM OF THE REGULATORS' RULING OR THE TRANSFORMATION OF CINERGY INTO A HOLDING COMPANY WHICH WOULD HOLD AS AN INDIANABASED UNIT THE CURRENT PSI OPERATIONS THE LATTER MOVE WHILE NOT EASY TO ACHIEVE IN THE THICK FIELD OF REGULATION THAT BINDS UTILITIES HAS ALREADY PASSED MUSTER WITH STATE REGULATORS IN ANOTHER CASE 9306280049 930628 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA FOREIGN ITALIAN BANKS DIFFER ON ROLE IN RESTRUCTURING A RIFT EMERGED BETWEEN ITALIAN CREDITOR BANKS OF ITALY'S CASHSTRAPPED FERRUZZI FINANZIARIA SPA AND THE COMPANY'S FOREIGN BANKS SOCIETE GENERALE DE FRANCE SA AND UNION BANK OF SWITZERLAND SAID THAT UNLIKE THE FIVE ITALIAN CREDITORS THEY ARE PLAYING ONLY AN ADVISORY ROLE NOT A FINANCIALLY SUPPORTIVE ROLE IN THE RESTRUCTURING OF THE MILANBASED AGROINDUSTRIAL CONGLOMERATE FERRUZZI HAD NET CONSOLIDATED DEBT OF 15 TRILLION LIRE 97 BILLION AND GROSS DEBT OF 31 TRILLION LIRE AS OF THE END OF 1992 LAST WEEK THE FIVE ITALIAN BANKS MEDIOBANCA CREDITO ITALIANO BANCA COMMERCIALE ITALIANA BANCA DI ROMA AND ISTITUTO BANCARIO SAN PAOLO DI TORINO ANNOUNCED THAT SOCIETE GENERALE AND UBS HAD JOINED THEM IN A POOL OF BANKS CONTINUING TO SUPPORT FERRUZZI WHILE WORKING OUT A RESTRUCTURING PLAN THEY SAID THE POOL REPRESENTED ABOUT THREEFOURTHS OF FERRUZZI'S GROSS DEBT ANALYSTS SUGGESTED THAT THE FOREIGN BANKS MIGHT INSIST ON REPAYMENT OF LOANS OUTSTANDING IN CASE OF DEFAULT 9306280048 930628 WARY JAPANESE BET ON CONVERTIBLE BONDS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE CONVERTIBLES ARE A HOT TICKET AND NOT JUST THE ONES ROLLING OFF THE ASSEMBLY LINES AT TOYOTA MOTOR CORP AND NISSAN MOTOR CO SALES OF CONVERTIBLE BONDS IN JAPAN BY JAPANESE COMPANIES ARE SOARING THE VOLUME OF NEW ISSUES THIS MONTH IS EXPECTED TO TOP 300 BILLION YEN 28 BILLION UP FROM ABOUT 30 BILLION YEN IN JANUARY AUTOMOTIVE ELECTRONICS MAKER NIPPONDENSO CO AND ASAHI GLASS CO EACH RECENTLY ANNOUNCED CONVERTIBLE BOND ISSUES VALUED AT 100 BILLION YEN THE FIRST 100 BILLIONYEN CONVERTIBLE ISSUES IN JAPAN SINCE 1989 THE PEAK OF JAPAN'S STOCKMARKET BOOM MORE LARGESCALE ISSUES ARE EXPECTED CONVERTIBLE BONDS ARE THE REAL HOT MARKET NOW SAYS GEN YAMAGUCHI MANAGER OF THE PRIMARY MARKETS DIVISION AT NIKKO SECURITIES CO EVERY ISSUE GAINS 5 OR 10 ON THE FIRST TRADING DAY HE SAYS HIS COMPANY PLANS TO ISSUE AT LEAST 10 CONVERTIBLE ISSUES IN THE NEXT TWO MONTHS CONVERTIBLE BONDS ARE CORPORATE SECURITIES THAT PAY A RELATIVELY LOW RATE OF INTEREST BUT LET BUYERS BET ON THE STOCK MARKET IF A COMPANY'S STOCK PRICE RISES SHARPLY OVER THE LIFE OF THE BOND HOLDERS OF THE BONDS CAN CONVERT THEM INTO STOCK AT A DISCOUNT TO THE MARKET VALUE THE BONDS THEMSELVES ALSO ARE TRADED RISING IN VALUE ALONG WITH A COMPANY'S SHARE PRICE MEANWHILE INVESTORS RECEIVE MODERATE BUT GUARANTEED INTEREST INCOME WHEN THE STOCK MARKET PLUNGES PRICES OF CONVERTIBLES OFTEN FALL TOO BUT THEY HOLD UP BETTER THAN STOCKS CONVERTIBLES WILL ALWAYS OUTPERFORM STOCKS WHEN THE MARKET'S GOING DOWN BECAUSE THEY PAY INTEREST SAYS ALAN LIVSEY ANALYST AT KLEINWORT BENSON INTERNATIONAL INC PERFORMANCE AMONG THE CONVERTIBLES CAN VARY WIDELY HOWEVER SINCE THE BONDS OFFER VARIOUS MATURITIES AND PAY DIFFERENT RATES OF INTEREST AT A TIME OF TURMOIL IN JAPANESE FINANCIAL AND POLITICAL LIFE SAFETY IS A KEY ATTRACTION FOR CONVERTIBLE BUYERS JAPANESE SHARE PRICES RALLIED 27 FROM THE JANUARY BOTTOM TO THE JUNE PEAK BUT LATELY THE MARKET HAS BEEN ROCKED BY FEARS OF POLITICAL INSTABILITY PARLIAMENT PASSED A VOTE OF NOCONFIDENCE IN THE GOVERNMENT 10 DAYS AGO FORCING THE RULING PARTY TO CALL AN ELECTION THE NIKKEI STOCK AVERAGE WHICH HAD CLOSED AS HIGH AS 21076 ON JUNE 3 FINISHED FRIDAY AT 1965957 TRADERS ARE WORRIED THAT JAPANESE STOCKS ARE IN FOR MORE VOLATILITY BEFORE THE JULY 18 ELECTION INVESTORS ARE LESS PESSIMISTIC THAN LAST YEAR BUT THEY'RE STILL CAUTIOUS SAYS NOBU NAKAZAWA MANAGING DIRECTOR OF NOMURA SECURITIES CO WHICH IS MANAGING THE NIPPONDENSO ISSUE YAMAICHI SECURITIES CO IS HANDLING ASAHI GLASS THEY'RE LOOKING AT THE STOCK MARKET NOW NOT ONLY FOR GROWTH POTENTIAL BUT CREDIBILITY HE SAYS NIPPONDENSO HE NOTES HAS A STRONG CREDIT RATING JAPANESE CONVERTIBLE BONDS TYPICALLY YIELD ABOUT 15 THAT'S LESS THAN THE 36 AVAILABLE FROM A JAPANESE POSTAL SAVINGS ACCOUNT BUT MORE THAN THE 08 AVERAGE DIVIDEND PAYOUT IN THE STOCK MARKET IT ALSO EXCEEDS JAPAN'S EXPECTED RATE OF INFLATION THIS YEAR WHICH IS ABOUT 1 NOT EVERYBODY SEES JAPANESE CONVERTIBLES AS A SUREFIRE INVESTMENT THE BONDS ARE SO WELL BID NOW THAT SHARE PRICES WILL HAVE TO RISE 10 TO 20 FOR A BUYER TO MAKE MONEY CONVERTING THE BOND INTO STOCK MR LIVSEY SAYS HE SAYS CONVERTIBLES ARE A GOOD DEFENSIVE CHOICE FOR SOMEONE WHO'S INTERESTED IN JAPANESE EQUITIES BUT IS WORRIED STOCKS ARE HEADED LOWER OVER THE NEXT THREE TO SIX MONTHS FOR A JAPANESE COMPANY AT LEAST ISSUING A CONVERTIBLE BOND WHEN THERE'S THIS MUCH BUYER INTEREST IS A GOOD DEAL A LOAN FROM A BANK IF A COMPANY CAN FIND A JAPANESE BANK WILLING TO LEND THESE DAYS CARRIES A 6 INTEREST RATE ISSUING NEW STOCK WOULD BE CHEAPER BUT AN INFORMAL BAN HAS KEPT NEW ISSUES OFF THE FIRST SECTION OF THE TOKYO MARKET FOR MORE THAN THREE YEARS AND EVEN IF THE NIKKEI AVERAGE WITHSTANDS THE CURRENT POLITICAL TURMOIL STILL A BIG UNKNOWN FOR MANY ANALYSTS ONLY A FEW NEW ISSUES ARE FORESEEN IN THE NEXT COUPLE YEARS THE FINANCE MINISTRY AND POWERFUL SECURITIES FIRMS FEAR THAT ADDING NEW SHARES WOULD CREATE ANOTHER SUPPLY GLUT WHICH COULD DRIVE THE MARKET DOWN NOTABLY MANY OF THE COMPANIES ISSUING CONVERTIBLE BONDS NEED THE MONEY TO PAY OFF STOCKLINKED BONDS THEY ISSUED WHEN THE MARKET WAS BOOMING NIPPONDENSO FOR EXAMPLE HAD A 1 BILLION STOCKLINKED BOND COME DUE JUNE 1 THAT'S NOT TO SAY THAT JAPAN'S CORPORATE CHIEFTAINS ARE ABOUT TO REPEAT THEIR MISTAKE OF ISSUING TOO MANY STOCKLINKED BONDS ANALYSTS ESTIMATE THE AMOUNT OF OLD STOCKLINKED DEBT COMING DUE THROUGH SEPTEMBER AT ABOUT 5 TRILLION YEN WHICH IS FAR MORE THAN ANY EXPECTED GROWTH IN THE CONVERTIBLE BOND MARKET 9306280047 930628 WHO'S NEWS BORDEN TO NAME ERVIN SHAMES TO TOP POSTS EXECUTIVE FROM STRIDE RITE TO JOIN AS PRESIDENT AND OPERATING CHIEF BY SUEIN L HWANG AND JOSEPH PEREIRA STAFF REPORTERS OF THE WALL STREET JOURNAL BORDEN INC IS EXPECTED TO NAME ERVIN R SHAMES THE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF STRIDE RITE CORP AS ITS PRESIDENT AND CHIEF OPERATING OFFICER THE APPOINTMENT EXPECTED TO BE ANNOUNCED TODAY WOULD END A FOURMONTH SEARCH THAT BEGAN WITH THE MARCH 1 RESIGNATION OF JON G HETTINGER WHO WAS EXECUTIVE VICE PRESIDENT OF BORDEN'S GROCERYPRODUCTS DIVISION BORDEN WAS SO EAGER TO HIRE MR SHAMES WHO HAD SPENT 22 YEARS IN THE FOOD INDUSTRY THAT IT GAVE HIM THE NEW TITLE OF PRESIDENT AND CHIEF OPERATING OFFICER IN AN INTERVIEW MR SHAMES SAID HE WASN'T LOOKING FOR A JOB WHEN BORDEN APPROACHED HIM WITH A UNIQUE AND EXCELLENT OPPORTUNITY TO REJOIN AN INDUSTRY I REALLY LOVE HE NOTED THAT BORDEN FACES SIGNIFICANT CHALLENGES AS WELL AS SIGNIFICANT OPPORTUNITIES HE SAID HE PROBABLY WILL LEAVE STRIDE RITE IN MIDJULY MR SHAMES'S RESIGNATION LEAVES STRIDE RITE WITHOUT AN OBVIOUS SUCCESSOR TO ARNOLD HIATT WHO RETIRED AS CHAIRMAN LAST YEAR THE NEWS APPARENTLY CAUGHT STRIDE RITE EXECUTIVES BY SURPRISE MR SHAMES INFORMED THE BOARD OF HIS DECISION YESTERDAY ALTHOUGH NEWS BEGAN TO TRICKLE THROUGHOUT THE COMPANY ON FRIDAY MR SHAMES WHO BECAME PRESIDENT AND CHIEF EXECUTIVE OFFICER AT STRIDE RITE IN 1990 TOOK ON THE ADDITIONAL TITLE OF CHAIRMAN AFTER MR HIATT RETIRED TO OVERSEE THE COMPANY'S CHARITABLE FOUNDATION HIS DEPARTURE COMES AT A DIFFICULT TIME FOR THE COMPANY WHICH HAS STUMBLED A BIT IN RECENT MONTHS AFTER YEARS OF SPECTACULAR GROWTH FOODINDUSTRY WATCHERS PRAISED THE APPOINTMENT OF 52YEAROLD MR SHAMES A VETERAN OF KRAFT'S GENERAL FOODS AT THAT COMPANY HE PRESIDED OVER SUCH BRANDS AS JELLO GELATIN COOL WHIP AND MAXWELL HOUSE COFFEE HIS LAST POST IN THE FOOD BUSINESS WAS AS PRESIDENT OF PHILIP MORRIS COS' KRAFT USA DIVISION UNTIL 1989 ERV WOULD BE A COUP FOR BORDEN SAID GARY STIBEL OF NEW ENGLAND CONSULTING GROUP NOTING THAT MR SHAMES WOULD BE A GOOD COMPLEMENT TO BORDEN'S CHIEF EXECUTIVE ANTHONY D'AMATO D'AMATO GREW UP IN THE HOUSEHOLDPRODUCTS BUSINESS AND THEY NEED A STRONG LEADER IN THE FOOD BUSINESS HE SAID MR SHAMES LEFT KRAFT IN 1989 TO HEAD KENDALL CO A CLOSELY HELD HEALTHCAREPRODUCTS CONCERN HE JOINED STRIDE RITE IN 1990 IN HIS NEW POST MR SHAMES WILL FOCUS SOLELY ON THE TROUBLED FOOD BUSINESSES OF NEW YORKBASED BORDEN LEAVING THE PACKAGING AND INDUSTRIAL PRODUCTS DIVISION TO MR D'AMATO HIS NO 1 PRIORITY WILL BE NORTH AMERICAN FOODS AND HIS SECOND PRIORITY WILL BE INTERNATIONAL FOODS MR D'AMATO SAID IN AN INTERVIEW HE ADDED THAT MR SHAMES WAS HIS FIRST CHOICE FOR THE JOB MOREOVER BORDEN IS GIVING MR SHAMES A MORE GENEROUS COMPENSATION PACKAGE THAN MR D'AMATO CURRENTLY RECEIVES LET'S PUT IT THIS WAY IF HE DOES A GOOD JOB MAYBE HE'S WORTH MORE THAN ME MR D'AMATO QUIPPED WE CANNOT ATTRACT CERTAIN TALENTS WITHOUT PUTTING A PACKAGE TOGETHER THAT MITIGATES WHAT HE'S WALKING AWAY FROM ACCORDING TO PROXY STATEMENTS MR D'AMATO EARNED 735222 IN SALARY AND 93570 IN VARIOUS BENEFITS MR SHAMES'S ABRUPT DEPARTURE FROM STRIDE RITE POSES DIFFICULT SUCCESSION AND OPERATIONAL PROBLEMS FOR THE CAMBRIDGE MASS MAKER OF KEDS SPERRY TOPSIDER AND STRIDE RITE SHOES BEFORE MR SHAMES JOINED STRIDE RITE TWO OTHER EXECUTIVES HAD BEEN GROOMED FOR THE TOP JOB IN ANTICIPATION OF THE RETIREMENT OF MR HIATT LAST YEAR WHEN MR SHAMES ASSUMED THE ADDITIONAL POST OF CHAIRMAN AT THAT TIME THE LONG SEARCH FOR A SUCCESSOR WAS THOUGHT TO HAVE FINALLY CONCLUDED THE INSIDE THINKING WAS THAT ERV WOULD DO FOR STRIDE RITE IN THE '90S WHAT ARNOLD HIATT DID FOR THE COMPANY IN THE '80S SAID JOHN PHELAN WHO RETIRED EARLIER THIS YEAR AS VICE CHAIRMAN OF STRIDE RITE SO WHEN COMPANY EXECUTIVES FIRST LEARNED OF MR SHAMES'S RESIGNATION ON FRIDAY WE WERE ALL SHOCKED SAID MR PHELAN MOST LIKELY MR SHAMES'S SUCCESSOR WILL BE SOMEONE WITH A BACKGROUND IN THE FOOTWEAR BUSINESS THAT PERSON WILL PROBABLY COME FROM OUTSIDE THE FIRM AN INDIVIDUAL FAMILIAR WITH THE COMPANY'S HIRING POLICY SAID AMONG THE NEW CHIEF'S ASSIGNMENTS WILL BE TO REGAIN MOMENTUM IN THE COMPANY'S POPULAR KEDS SHOE LINE ITS LEADING BUSINESS SALES HAVE BEEN AFFECTED BY KNOCKOFFS AND DISCOUNTING BY SOME RETAILERS AS A RESULT STRIDE RITE REPORTED AN EARNINGS DECLINE EARLIER THIS YEAR AFTER A STRING OF RECORD PROFITS OVER THE PAST SIX YEARS 9306280046 930628 ARIANESPACE TO SUPPLY ROCKET FOR LAUNCH BY INDONESIAN FIRM JAKARTA INDONESIA'S NEW SATELLITE OPERATOR HAS TAPPED ARIANESPACE TO SUPPLY THE ROCKET FOR ITS PREMIER LAUNCH GIVING THE EUROPEAN CONSORTIUM ITS FIRST VICTORY OVER ITS US RIVALS FOR INDONESIAN WORK PT SATELIT PALAPA INDONESIA OR SATELINDO ANNOUNCED FRIDAY THAT IT WILL USE AN ARIANE IV ROCKET TO PUT IN ORBIT THE FIRST OF THE THIRDGENERATION OF INDONESIAN SATELLITES CALLED PALAPA C IN WINNING THE LAUNCH ARIANESPACE DEFEATED GENERAL DYNAMICS CO WHICH OFFERED ITS ATLAS ROCKET TO CARRY PALAPA C1 INDONESIA WANTS TO LAUNCH PALAPA C1 BY OCTOBER 1995 TO REPLACE A DYING B SERIES SATELLITE AND THUS ENSURE THAT THE COUNTRY MAINTAINS ITS PIVOTAL POSITION IN THE INCREASINGLY COMPETITIVE REGIONAL SATELLITE BUSINESS SOURCES SAID GENERAL DYNAMICS' OFFER WAS ABOUT 10 MILLION LESS THAN ARIANESPACE'S BUT SATELINDO PRESIDENTDIRECTOR IWA SEWAKA SAID AT A NEWS CONFERENCE THAT ARIANE IV'S COST PER YEAR WAS LOWER THAN THAT FOR THE ATLAS ROCKET IN ITS OFFER ARIANESPACE GUARANTEED TO KEEP THE C1 SATELLITE IN STATIONARY ORBIT FOR 14 YEARS WHILE GENERAL DYNAMICS ENSURED 12 YEARS THE 34TRANSPONDER SATELLITE BEING BUILT BY HUGHES AIRCRAFT CO WILL BE GUARANTEED TO OPERATE AT FULL CAPACITY FOR 12 YEARS 9306280045 930628 MANAGER'S JOURNAL JAPAN TRIES TO GET THE SIZE RIGHT BY DOUGLAS T SHINSATO TOKYO RECENT BUSINESS PUBLICATIONS CONTEND THAT JAPAN'S CURRENT ECONOMIC WOES ARE COMPOUNDED BY THE INABILITY OF COMPANIES TO REDUCE THEIR WORK FORCES DUE TO LIFETIME EMPLOYMENT PRACTICES THIS IS SAID TO PUT JAPANESE FIRMS AT A DISTINCT DISADVANTAGE RELATIVE TO US AND EUROPEAN COMPETITORS WHICH CONTINUE TO REDUCE THEIR NUMBER OF EMPLOYEES IN AN ATTEMPT TO BALANCE SHORT AND MEDIUMTERM EXPENSES AND REVENUES WHILE DISCUSSIONS WITH CLIENTS HAVE LED ME TO BELIEVE THAT THERE'S TRUTH IN THIS ARGUMENT LARGE JAPANESE COMPANIES ARE SPENDING MORE TIME THESE DAYS REDEFINING WHAT IT IS THEY MUST LEARN IN ORDER TO SURVIVE AND PROSPER CHANGE OR AT LEAST THE TALK OF IT IS ON EVERYONE'S MIND MOST JAPANESE COMPANIES UNDERSTAND THE NATURE OF THEIR CURRENT PROBLEM THE TYPICAL JAPANESE COMPANY STILL VIEWS ALMOST ALL OF ITS COSTS INCLUDING LABOR AS FIXED TO STEER THEIR WAY THROUGH THE CURRENT RECESSION HOWEVER JAPANESE COMPANIES MUST FOCUS ON REDUCING ALL COSTS WHICH MEANS CHANGING THEIR VIEW ON THE FIXED NATURE OF PERSONNEL EXPENSES STEVEN WHEELWRIGHT OF THE HARVARD BUSINESS SCHOOL HAS APPLIED THE TERM LEARNING ORGANIZATION TO THOSE COMPANIES THAT EXCEL AT READING AND REACTING TO CHANGES IN CUSTOMER REQUIREMENTS AND COMPETITORS' OFFERINGS IN TERMS OF MR WHEELWRIGHT'S MODEL JAPANESE COMPANIES HAVE COLLECTED INFORMATION ON HOW WESTERN COMPANIES DEVISE AND IMPLEMENT DOWNSIZING PROGRAMS BUT THEY HAVE NOT YET LEARNED HOW TO ASSIMILATE THIS INFORMATION FOR USE IN A JAPANESE CONTEXT OR FOR THAT MATTER IN AN AMERICAN ONE FOR EXAMPLE ONE OF OUR CLIENTS A LARGE JAPANESE INDUSTRIAL FIRM HAS EXPERIENCED FINANCIAL DIFFICULTIES WITH ITS US OPERATIONS TOP MANAGEMENT IN JAPAN IMMEDIATELY FOCUSED ON WORK FORCE DOWNSIZING BECAUSE IT IS AN ACCEPTABLE PRACTICE IN AMERICA THIS SAME EXECUTIVE GROUP WAS NOT HOWEVER WILLING TO MANAGE THE STAFFING REDUCTION ITSELF BECAUSE WE ARE NOT EXPERIENCED IN THESE MATTERS WE INTEND TO LET OUR AMERICAN MANAGERS HANDLE IT BUT EFFORTS ARE BEING MADE TO GAIN SUCH EXPERIENCE ONE MANUFACTURER IS TOYING WITH THE IDEA OF PUTTING EVERYONE IN ITS JAPANESE OPERATIONS ON A TEMPORARY CONTRACT THAT IS ANYONE IN THE WORK FORCE COULD BE LAID OFF AS ECONOMIC CONDITIONS DICTATE TO MAKE THIS WORK AT THE END OF FIVE MONTHS AND 29 DAYS A WORKER WOULD BE DISMISSED FOR A DAY THEN REEMPLOYED UNDER A NEW FIVEMONTH 29DAY CONTRACT UNDER JAPANESE LABOR PRACTICES AT THE END OF SIX MONTHS A WORKER BECOMES A PERMANENT EMPLOYEE THE COMPANY CONCEDES THAT THIS WOULD BE EASIEST TO APPLY TO FACTORYFLOOR WORKERS DIFFICULT FOR WHITECOLLAR UNIVERSITY GRADUATES AND NEXT TO IMPOSSIBLE FOR ENGINEERS AT ANY RATE THE COMPANY SAYS THAT IT WILL PROBABLY NOT BE ABLE TO IMPLEMENT SUCH A PROGRAM BECAUSE IT IS TOO AMERICAN AND IT WOULD BE IMPOSSIBLE TO RECRUIT AND RETAIN QUALITY WORKERS EVEN SUPERIOR LEARNING ORGANIZATIONS ASSIMILATE AND USE INFORMATION ONLY AS FAST AS THEIR CULTURAL AND MENTAL BORDERS ALLOW THEM TO ACKNOWLEDGE AND THEN RESPOND TO CRISES YASUYUKI WAKABAYASHI AN INTERNATIONAL LAWYER IN TOKYO WORKS WITH LARGE JAPANESE AMERICAN AND EUROPEAN COMPANIES INCREASINGLY HE SAYS WE HAVE SEEN JAPANESE GLOBAL PRODUCTS SOLD IN GLOBAL PACKAGES WITH GLOBAL ADVERTISING CAMPAIGNS TARGETED AT MULTIPLE COUNTRIES STILL MR WAKABAYASHI CONTINUES THE CONCEPT OF BORDERS SURROUNDS ALL OF US IN TERMS OF LANGUAGE CULTURAL UPBRINGING AND RELIGIOUS AND RACIAL PERSPECTIVES THESE ARE MENTAL AND EMOTIONAL BORDERS THESE MENTAL AND EMOTIONAL BORDERS ARE MAKING IT DIFFICULT FOR JAPANESE COMPANIES TO SOLVE THEIR RIGHTSIZING PROBLEMS BUT THE PROCESS HAS BEGUN MANY LARGE JAPANESE COMPANIES ARE NOW LEARNING HOW IT IS DONE OVERSEAS MANY MORE ARE BUSY TRYING TO STRUCTURE THE PROBLEM AND POTENTIAL SOLUTIONS IN A WAY THAT WILL MINIMIZE THE CHAOS AS THEY MAKE THE CHANGE FROM AN ESTABLISHED ORGANIZATIONAL PARADIGM TO A NEW UNFAMILIAR ONE AND REMEMBER THAT LARGE JAPANESE COMPANIES THE GLUE OF JAPAN'S LIFETIME EMPLOYMENT SYSTEM COVER ONLY ONETHIRD OF THE COUNTRY'S WORK FORCE IT WILL JUST BE A MATTER OF TIME BEFORE THIS LEARNING IS ASSIMILATED DISTILLED MODIFIED AND APPLIED IN JAPANJUST AS OTHER MANAGEMENT LESSONS WERE IN THE POSTWORLD WAR II PERIOD WHEN THE MODERN EMPLOYMENT SYSTEM TOOK SHAPE THE NEXT FEW YEARS WILL SEE A PARADIGMATIC SHIFT IN THE WAY LARGE JAPANESE COMPANIES NURTURE COMPANY LOYALTY AND COMPETE WITHIN A MODIFIED EMPLOYMENT SYSTEM MR SHINSATO IS A MANAGEMENT CONSULTING PARTNER IN THE TOKYO OFFICE OF DELOITTE TOUCHE TOHMATSU 9306280044 930628 BUSINESS BRIEF GRUPO FINANCIERO BANCOMER SA HOLDING COMPANY SAYS NET CLIMBED 40 IN FIVE MONTHS GRUPO FINANCIERO BANCOMER SA THE HOLDING COMPANY FOR MEXICO'S SECONDLARGEST BANK SAID ITS FIVEMONTH ACCUMULATED NET PROFIT WAS 8697 MILLION NEW PESOS 280 MILLION UP 40 FROM THE LIKE 1992 PERIOD THE RESULT SHOWED A STRONG INCREASE IN PROFIT IN THE MONTH OF MAY OF 3328 MILLION NEW PESOS MEXICO'S BANKING GROUPS ARE REQUIRED TO POST THEIR RESULTS MONTHLY UNDER TERMS OF THEIR RELATIVELY RECENT PRIVATIZATION THE GROUP'S ACCUMULATED 12MONTH PROFIT THROUGH THE END OF MAY GREW TO 178 BILLION NEW PESOS 9306280043 930628 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 17 NEW LISTINGS INCLUDING NINE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MMI COS DEERFIELD ILL A SPECIALTY INSURANCE COMPANY UNDER MMI AND SITHE ENERGIES INC NEW YORK AN ELECTRIC GENERATING FACILITIES CONCERN UNDER SYT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL OFFERINGS TO ITS NASDAQ NATIONAL MARKET REXALL SUNDOWN INC FORT LAUDERDALE FLA A VITAMIN NUTRITIONAL SUPPLEMENTS AND CONSUMER HEALTH PRODUCTS CONCERN UNDER RXSD RHODES INC ATLANTA A FURNITURE RETAILER UNDER RHDS ST FRANCIS CAPITAL CORP MILWAUKEE A COMPANY FORMED TO ACQUIRE THE CAPITAL STOCK OF ST FRANCIS BANK FSB UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER STFR FLIR SYSTEMS INC PORTLAND ORE A THERMAL IMAGING SYSTEMS CONCERN UNDER FLIR HEALTHDYNE TECHNOLOGIES INC MARIETTA GA A HOME MEDICAL DEVICES CONCERN UNDER HDTC PRIMADONNA RESORTS INC LAS VEGAS NEV AN OWNER AND OPERATOR OF CASINO HOTELS UNDER PRMA PITTENCRIEF COMMUNICATIONS INC ABILENE TEXAS A MOBILE RADIO WIRELESS COMMUNICATIONS SERVICES CONCERN UNDER PITC MBLA FINANCIAL CORP MACON MO A COMPANY ORGANIZED TO ACQUIRE THE CAPITAL STOCK OF MACON BUILING & LOAN ASSOCIATION UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER MBLF AND MEGAHERTZ CORP SALT LAKE CITY UTAH A MAKER OF MODEMS FOR PORTABLE CO THE SERIES 1993A PREFERRED STOCK OF CITIZENS FEDERAL BANK A FEDERAL SAVINGS BANK MIAMI FLA A FEDERALLY CHARTERED SAVINGS BANK WAS APPROVED FOR DESIGNATION ON THE NASDAQ NATIONAL MARKET UNDER CFBKP ITS COMMON SHARES ARE OWNED BY CSF HOLDINGS INC DAIG CORP MINNETONKA MINN A MAKER OF CARDIOVASCULAR DEVICES FORMERLY TRADED ON THE PINK SHEETS AND WAS APPROVED FOR DESIGNATION ON THE NATIONAL MARKET SYSTEM UNDER DAIG THE FOLLOWING ISSUES MOVED UP FROM THE NASDAQ SMALL CAP MARKET TO THE NATIONAL MARKET SYSTEM COMMUNICATIONS INTELLIGENCE CORP REDWOOD SHORES CALIF A DEVELOPER AND LICENSER OF HANDWRITING RECOGNITION TECHNOLOGY FOR PENBASED COMPUTERS UNDER CICI ALPHA 1 BIOMEDICALS INC BETHESDA MD A PHARMACEUTICAL PRODUCTS CONCERN UNDER ALBM FOR COMMON AND ALBML FOR WARRANTS FUNCO INC EDEN PRAIRIE MINN A SPECIALTY RETAILER OF PREVIOUSLY PLAYED INTERACTIVE EQUIPMENT UNDER FNCO METATEC CORP DUBLIN OHIO AN OPTICAL DISC TECHNOLOGY CONCERN UNDER META THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FOLLOWING CLOSEDEND MANAGEMENT FUNDS TRIPLE A AND GOVERNMENT SERIES1995 INC AND TRIPLE A AND GOVERNMENT SERIES1997 INC IN NEW YORK AND ALSO BEGAN TRADING ANUHCO INC OVERLAND PARK KANSAS A MOTOR FREIGHT TRANSPORTATION SYSTEMS CONCERN UNDER ANU STATORDYNE CORP ANAHEIM CALIF A DEVELOPER OF PROPRIETARY PRODUCTS FOR THE POWER QUALITY STANDBY AND NOBREAK POWER SERVICE INDUSTRIES BEGAN TRADING ON THE AMEX EMERGING COMPANY MARKETPLACE COMMON STOCK WITH PUTS UNDER STYPEC AND COMMON STOCK PURCHASE WARRANTS UNDER STYWSEC THE AMEX BEGAN TRADING OPTIONS ON OAK INDUSTRIES INC AND CASINO MAGIC CORP THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON ASPECT TELECOMMUNICATIONS INC CARTER HAWLEY HALE STORES INC INTEGRATED DEVICE TECHNOLOGY INC KLA INSTRUMENTS CORP AND CASINO MAGIC CORP 9306280042 930628 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ABT BUILDING PRODUCTS CORP INITIAL 28 MILLION SHARES VIA MERRILL LYNCH & CO AER ENERGY RESOURCES INC INITIAL 25 MILLION SHARES VIA PRUDENTIAL SECURITIES INC ANCHOR BANCORP INC 43 MILLION SHARES VIA SALOMON BROTHERS INC BLOUNT INC 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA JP MORGAN SECURITIES INC BRADLEY REAL ESTATE TRUST 55 MILLION SHARES VIA KIDDER PEABODY & CO BROADBAND TECHNOLOGIES INC INITIAL 28 MILLION SHARES VIA BEAR STEARNS & CO CARRGOTTSTEIN FOODS CO INITIAL 88 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE CORP CARTER HAWLEY HALE 10 MILLION SHARES VIA SALOMON BROTHERS CONCURRENT COMPUTER CORP SECONDARY OFFERING OF 143 MILLION SHARES VIA SALOMON BROTHERS CYRK INTERNATIONAL INC INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES INC DELTA & PINE LAND CO 28 MILLION SHARES VIA DEAN WITTER REYNOLDS INC EAGLE INDUSTRIES 169 MILLION OF 10YEAR SENIOR NOTES COUPON NOTES VIA MERRILL LYNCH EK CHOR CHINA MOTORCYCLE CO INITIAL 44 MILLION SHARES VIA BEAR STEARNS FAIRCHILD CORP 85 MILLION OF EIGHTYEAR SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH GENZYME TRANSGENICS INITIAL TWO MILLION SHARES VIA PAINEWEBBER INC HOSPITALITY FRANCHISE SYSTEMS INC 47 MILLION SHARES VIA MERRILL LYNCH HUNTCO INC INITIAL 27 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE LEVITZ FURNITURE 85 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA MORGAN STANLEY & CO INC MAGMA POWER CO SECONDARY OFFERING OF 55 MILLION SHARES BY DOW CHEMICAL AND JP MORGAN VIA FIRST BOSTON CORP PLAYERS INTERNATIONAL INC FOUR MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE QUALCOMM INC TWO MILLION SHARES VIA LEHMAN BROTHERS INC SHILOH INDUSTRIES INC INITIAL 35 MILLION SHARES VIA KIDDER PEABODY SOUTHERN CALIFORNIA WATER CO 500000 SHARES VIA SMITH BARNEY HARRIS UPHAM & CO SUNDANCE HOMES INC INITIAL 27 MILLION SHARES VIA MONTGOMERY SECURITIES US AIR GROUP INC 150 MILLION OF 10YEAR NONCALLABLE SENIOR NOTES VIA MORGAN STANLEY COLORADO 350 MILLION OF SERIES 1993 GENERAL FUND TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID LOUISVILLE & JEFFERSON COUNTY METROPOLITAN SEWER DISTRICT KY 1035 MILLION OF VARIOUS SERIES 1993 BONDS VIA COMPETITIVE BID ALAMEDA COUNTY CALIF 150 MILLION OF 199394 TAX AND REVENUE ANTICIPATION NOTES VIA A PRYOR MCCLENDON COUNTS & CO INC GROUP LOS ANGELES COUNTY 350 MILLION OF FLEXIBLERATE TAX AND REVENUE ANTICIPATION NOTES VIA A FIRST BOSTON GROUP NEW YORK CITY TRANSIT AUTHORITY 150 MILLION OF SERIES 1993 TRANSIT FACILITY REFUNDING BONDS FOR THE LIVINGSTON PLAZA PROJECT VIA A PRYOR MCCLENDON COUNTS GROUP PENNSYLVANIA 750 MILLION OF SERIES 1993A CERTIFICATES OF PARTICIPATION VIA A PRUDENTIAL SECURITIES GROUP RIVERSIDE COUNTY CALIF 125 MILLION OF VARIABLERATE TAX AND REVENUE ANTICIPATION NOTES VIA A FIRST BOSTON GROUP TENNESSEE HOUSING DEVELOPMENT AGENCY 2659 MILLION 1993 SERIES A MORTGAGE FINANCE PROGRAM BONDS VIA A MERRILL LYNCH GROUP TUCSON UNIFIED SCHOOL DISTRICT ARIZ 107 MILLION OF BONDS VIA A PAINEWEBBER GROUP 9306280041 930628 US ATTACK ON IRAQ PINPOINTS PROBLEMS OF RESPONDING TO THREATS OF TERRORISM BY ROBERT S GREENBERGER AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID THE ATTACK ON IRAQ'S INTELLIGENCESERVICE HEADQUARTERS WAS A SUCCESS THAT SENT THE MESSAGE WE NEEDED TO SEND BUT AMID A NEW WAVE OF TERRORISM IT MAY BE MORE DIFFICULT TO DECIDE HOW TO MAKE SIMILAR DELIVERIES TO OTHER ADDRESSES US OFFICIALS ARE PROBING THE LINKS BETWEEN SUDAN AND SEVERAL OF THE ISLAMIC FUNDAMENTALISTS ARRESTED LAST WEEK FOR PLOTTING TERRORIST ACTS IN NEW YORK CITY IRAN CONTINUES TO SUPPORT TERRORIST OPERATIONS AIMED AT THE WEST AND TO PURSUE A NUCLEAR WEAPONS PROGRAM AND LIBYA STILL REFUSES TO SURRENDER TWO INTELLIGENCE OFFICERS SUSPECTED OF INVOLVEMENT IN THE 1988 BOMBING OF PAN AM 103 IN WHICH 176 AMERICANS WERE MURDERED IN CONTRAST TO THESE OFTEN SHADOWY TIES IRAQ'S INVOLVEMENT IN LAST APRIL'S ATTEMPT TO ASSASSINATE FORMER PRESIDENT BUSH DURING HIS VISIT TO KUWAIT PRESENTED THE US WITH A RELATIVELY CLEARCUT CASE KUWAIT CAPTURED AND JAILED THE PLOTTERS MR CLINTON DURING AN OVAL OFFICE ADDRESS SATURDAY NIGHT ANNOUNCING THE RETALIATORY STRIKE SAID A US INVESTIGATION TURNED UP COMPELLING EVIDENCE OF IRAQI INVOLVEMENT IN THE BUMBLED ATTEMPT OFFICIALS SAID THE EVIDENCE INCLUDED IRAQ'S UNMISTAKABLE SIGNATURE ON THE CAR BOMB MEANT FOR MR BUSH THIS ALLOWED THE US TO USE GREAT PRECISION IN ITS RESPONSE AT LEAST SEVEN TOMAHAWK CRUISE MISSILES EACH CARRYING A 1000POUND WARHEAD SLAMMED INTO THE WING OF THE BUILDING WHERE THE OFFICES OF THE DIRECTOR OF IRAQI INTELLIGENCE SERVICES ARE LOCATED THE STRIKE WHICH INVOLVED 23 TOMAHAWKS RESULTED IN THE NEAR COMPLETE DESTRUCTION OF THAT PART OF THE BUILDING SAID REAR ADMIRAL MICHAEL CRAMER DIRECTOR OF INTELLIGENCE FOR THE JOINT CHIEFS OF STAFF I THINK THAT SENT A VERY STRONG MESSAGE SECRETARY OF STATE WARREN CHRISTOPHER SAID YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY HE ADDED IT PROBABLY DOESN'T END THE STORY BUT IT CERTAINLY IS A REMINDER TO SADDAM HUSSEIN THAT WE HAVE THE CAPACITY TO HURT HIM VERY BADLY MR CHRISTOPHER AND OTHER ADMINISTRATION OFFICIALS TOOK TO THE AIRWAVES YESTERDAY TO SEIZE THE OPPORTUNITY TO DISPEL THE GROWING IMPRESSION OF US PASSIVITY IN FOREIGN AFFAIRS FUELED BY BOSNIA AND STATEMENTS ABOUT THE LIMITS OF US POWER IN THE POSTCOLD WAR WORLD FROM TIME TO TIME THE US WILL HAVE ITS VITAL INTERESTS SO SERIOUSLY THREATENED THAT WE WILL ACT ALONE MR CHRISTOPHER SAID THE ACTION AGAINST IRAQ IS LIKELY TO GIVE MR CLINTON A SHORTTERM BOOST IN HIS PUBLIC IMAGE THE PRESIDENT HAS BEEN WIDELY ACCUSED OF BEING ANTIMILITARY AND HIS WILLINGNESS TO USE FORCE MAY SILENCE SOME OF THESE CRITICS BUT THIS ONE ACT PROBABLY WON'T IMPROVE SIGNIFICANTLY HIS STRAINED RELATIONS WITH THE MILITARY THE AVERAGE SOLDIER OR SAILOR IS FAR LESS CONCERNED WITH SADDAM HUSSEIN THAN HE IS WITH THE ADMINISTRATION'S PROPOSED GOVERNMENTWIDE PAY FREEZE AND ITS DESIRE TO LIFT THE BAN ON GAYS IN THE MILITARY WHILE MR CLINTON MAY SCORE SOME POINTS WITH THE PENTAGON FOR HIS WILLINGNESS TO USE FORCE THAT MAY BE OFFSET BY RESENTMENT OVER THE INCREASINGLY LONG DEPLOYMENTS THAT ARE BEING REQUIRED OF PERSONNEL AS THE ADMINISTRATION SHRINKS THE OVERALL MILITARY FURTHER SOME PEOPLE WILL CLAIM THE ACTION IS A MINIMAL RESPONSE IF WE HADN'T DONE THIS HE THE PRESIDENT WOULD HAVE LOOKED LIKE A JELLYFISH SAID REP PAT SCHROEDER D COLO A MEMBER OF THE HOUSE ARMED SERVICES COMMITTEE YESTERDAY ON CBSTV'S FACE THE NATION THE GAINS FROM THE IRAQI ACTION MAY BE A DOUBLEEDGED SWORD IF THEY PROVOKE A NEW ROUND OF TITFORTAT WITH SADDAM HUSSEIN THIS COULD DETRACT FROM SUCH DOMESTIC EFFORTS AS WINNING APPROVAL FOR MR CLINTON'S DEFICITREDUCTION PLAN MUCH OF THIS WILL BE IN EVIDENCE AT NEXT WEEK'S INTERNATIONAL ECONOMIC SUMMIT IN TOKYO WHERE THE PROBLEMS RANGE FROM GETTING RELUCTANT COUNTRIES TO CONTRIBUTE MONEY TO HELP RUSSIA'S REFORMS TO BREAKING THE STALEMATE IN THE LONGSTALLED WORLD TRADE TALKS IN HIS OVAL OFFICE ADDRESS MR CLINTON SAID WE WILL COMBAT TERRORISM BUT IT MAY BE MORE DIFFICULT TO FIND THE PRECISE ADDRESS FOR US MILITARY STRIKES AGAINST THE TERRORISTS WHO CROPPED UP IN NEW YORK LAST WEEK UNLIKE SADDAM HUSSEIN WHO WANTED TO GET EVEN WITH GEORGE BUSH FOR THE PERSIAN GULF WAR THE NEW BREED OF ISLAMIC FUNDAMENTALIST TERRORISM IS LASHING OUT MORE BROADLY AGAINST SECULARISM AND THE WEST THESE GROUPS HAVE THE SUPPORT OF STATES SUCH AS IRAN AND IRAQ BUT THEY AREN'T CONTROLLED BY THEM MOREOVER THERE IS A GROWING PERCEPTION IN THE ARAB WORLD INCLUDING AMONG AMERICA'S CLOSEST FRIENDS THAT WASHINGTON USES A DOUBLE STANDARD IN ITS HARSH TREATMENT OF BAGHDAD ARAB DIPLOMATS COMPLAIN THAT THE US HAS DONE LITTLE TO RETALIATE AGAINST THE SERBS FOR THEIR ETHNIC CLEANSING CAMPAIGN AGAINST BOSNIA'S MUSLIMS AND DOESN'T PUNISH ISRAEL FOR ITS VIOLATION OF UNITED NATIONS RESOLUTIONS ONE DIPLOMAT EXPRESSED CONCERN LAST WEEK THAT ANY US MILITARY RETALIATION AGAINST SADDAM HUSSEIN WOULD ONLY FUEL THE ANGER OF THE FUNDAMENTALIST GROUPS THAT ARE BATTLING EGYPT'S GOVERNMENT THE UN AND THE US MAY SOON HAVE TO TAKE MORE TOUGH MEASURES AGAINST IRAQ AS SADDAM HUSSEIN CONTINUES TO DEFY UN RESOLUTIONS CONCERNING THE DESTRUCTION AND MONITORING OF IRAQ'S WEAPONS PROGRAMS MEANWHILE IRAN AND LIBYA LOOM AS TWO OTHER POSSIBLE TESTS OF MR CLINTON'S TOUGHNESS US OFFICIALS CONTEND THAT TEHRAN IS WORKING TO DEVELOP NUCLEAR WEAPONS IN ADDITION TO ITS BIOLOGICAL WEAPONS HAS ACQUIRED NAVAL VESSELS TO PROJECT POWER INTO THE PERSIAN GULF AND IS TRYING TO BUY MISSILES FROM CHINA AND NORTH KOREA THAT WOULD HAVE SUFFICIENT RANGE TO REACH ISRAEL AND LIBYA CONTINUES TO DEFY DEMANDS THAT IT TURN OVER THE SUSPECTS INVOLVED IN THE PAN AM 103 TERRORIST BOMBING UN SANCTIONS AGAINST LIBYA ARE SCHEDULED FOR REVIEW IN AUGUST SO FAR THE US HAS BEEN UNSUCCESSFUL IN CONVINCING ITS EUROPEAN ALLIES TO SUPPORT AN OIL EMBARGO OF LIBYA AND WASHINGTON CONTINUES TO ESCHEW STRONGER MEASURES AFTER THIS STRIKE AGAINST IRAQ I DON'T THINK THE GOVERNMENT CAN ANY LONGER SAY WHAT THEY'VE BEEN TELLING US THAT THEY CAN'T RESPOND UNILATERALLY SAID SUSAN COHEN WHOSE 20YEAROLD DAUGHTER THEODORA WAS KILLED ON PAN AM 103 WHEN THERE ARE ACTS OF TERRORISM AGAINST AMERICANS THEY SHOULD BE PUNISHED FROM THE TOP IN SATURDAY'S ATTACK ON BAGHDAD THREE CRUISE MISSILES MISSED THE TARGET AND HIT RESIDENTIAL AREAS WITHIN A FEW BLOCKS OF THE IRAQI INTELLIGENCE COMPOUND WHICH IS LOCATED IN WESTERN BAGHDAD THE JOINT CHIEFS OFFICIALS SAID NONETHELESS SAID ADM CRAMER IT WAS A SUCCESSFUL STRIKE BUT YESTERDAY THE PENTAGON UNDERSCORED THE TURMOIL OF THE POSTCOLD WAR WORLD WHEN IT ANNOUNCED THAT IT WAS MOVING AN AIRCRAFT CARRIER FROM ONE HOT SPOT TO ANOTHER THE USS THEODORE ROOSEVELT WHICH HAS BEEN HELPING ENFORCE THE NOFLY ZONE OVER THE FORMER YUGOSLAVIA IS BEING MOVED AS A PRECAUTION INTO THE RED SEA WELCOME TO THE 1990S DEFENSE SECRETARY LES ASPIN SAID YESTERDAY ON CNN'S NEWSMAKER SUNDAY I MEAN YOU'RE GOING TO FIND A WHOLE SERIES OF SITUATIONS IN WHICH THE ISSUE IS GOING TO BE SHOULD THE UNITED STATES ACT OR SHOULD THE UNITED STATES NOT ACT HE SAID AND WE'RE GOING TO FIND OURSELVES PICKING AND CHOOSING BECAUSE FRANKLY WE DO NOT HAVE THE RESOURCES TO GO IN EVERYWHERE AND DO EVERYTHING 9306280040 930628 WHO'S NEWS CLINTON IS EXPECTED TO NOMINATE HUNDT LONGTIME GORE FRIEND AS FCC CHAIRMAN BY MARY LU CARNEVALE AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NAME REED HUNDT A WASHINGTON LAWYER AND LONGTIME FRIEND OF VICE PRESIDENT AL GORE TO BE CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION A SENIOR ADMINISTRATION OFFICIAL SAID MR HUNDT IS A PARTNER IN THE WASHINGTON OFFICE OF LATHAM & WATKINS A LAW FIRM WHOSE PARTNER RANKS INCLUDE FORMER FCC CHAIRMAN MARK FOWLER MR FOWLER LED THE REAGANEGA DEREGULATION OF THE BROADCASTING AND TELECOMMUNICATION INDUSTRIES MR HUNDT'S VIEWS ON COMMUNICATIONS MATTERS AREN'T WIDELY KNOWN UNLIKE OTHER FREQUENTLY MENTIONED CANDIDATES FOR THE TOP COMMUNICATIONS POST MR HUNDT HAS BUILT HIS REPUTATION AS A LITIGATOR HE HEADED THE LITIGATION DEPARTMENT AT LATHAM & WATKINS' WASHINGTON OFFICE UNTIL 1988 HE ALSO HAS HANDLED FIRST AMENDMENT AND ANTITRUST MATTERS EXPERIENCE THAT COULD PROVE USEFUL AS THE TELEPHONE TELEVISION AND COMPUTER INDUSTRIES CONVERGE IN A FLURRY OF ALLIANCES AND MERGERS IN JUST THE PAST YEAR THE COMMUNICATIONS LANDSCAPE HAS CHANGED SIGNIFICANTLY THE RESULT OF MAJOR NEW ALLIANCES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO'S PLANNED ACQUISITION OF A STAKE IN MCCAW CELLULAR COMMUNICATIONS INC U S WEST INC'S ALLIANCE WITH TIME WARNER INC AND MCI COMMUNICATIONS CORP'S ALLIANCE WITH BRITISH TELECOM MR HUNDT HAS BEEN A CLOSE FRIEND OF MR GORE'S SINCE THE TWO ATTENDED ST ALBANS A PRIVATE BOYS' SCHOOL IN WASHINGTON ACCORDING TO MR HUNDT'S RESUME HE HAS BEEN A SENIOR ADVISER TO MR GORE'S CAMPAIGNS AND HAS ADVISED HIM ON POLICY ISSUES INCLUDING ENVIRONMENTAL MATTERS OFFICIALS CLOSE TO THE WHITE HOUSE SAID THE NOMINATION ANNOUNCEMENT IS EXPECTED SOON THE SENATE MUST APPROVE THE NOMINATION BUT LITTLE OR NO OPPOSITION IS EXPECTED A COLLEAGUE AT LATHAM & WATKINS SAID MR HUNDT ISN'T GIVING INTERVIEWS AT THIS TIME A REPUBLICAN SEAT AT THE FIVEMEMBER COMMISSION IS ALSO VACANT AND THE WHITE HOUSE IS SAID TO BE LEANING TOWARD NOMINATING REGINA KEENEY THE SENIOR LAWYER FOR THE REPUBLICANS ON THE SENATE COMMUNICATIONS SUBCOMMITTEE ON FRIDAY PRESIDENT CLINTON NAMED KRISTINE GEBBIE A 49YEAROLD FORMER NURSE AND PAST HEAD OF TWO STATE HEALTH DEPARTMENTS TO BE THE NATION'S FIRST AIDS CZAR MS GEBBIE WHOM THE PRESIDENT CHOSE AFTER SEVERAL OTHER CANDIDATES TURNED DOWN THE JOB WILL BE RESPONSIBLE FOR COORDINATING THE GOVERNMENT'S RESPONSE TO THE ACQUIRED IMMUNE DEFICIENCY SYNDROME EPIDEMIC AND GETTING THE NUMEROUS ARMS OF THE FEDERAL BUREAUCRACY THAT HAVE A PIECE OF THE ISSUE TO WORK TOGETHER SHE HAS BEEN SECRETARY OF THE WASHINGTON STATE DEPARTMENT OF HEALTH ADMINISTRATOR OF THE OREGON HEALTH DIVISION AND WAS ON SEVERAL FEDERAL AND STATE AIDS ADVISORY COMMITTEES AND COMMISSIONS THE PRESIDENT ALSO CHOSE JO ANN HARRIS A NEW YORK CITY WHITECOLLAR DEFENSE LAWYER TO HEAD THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION MS HARRIS 60 ALSO IS A PROFESSOR AT PACE UNIVERSITY SCHOOL OF LAW IN WHITE PLAINS NY SHE WORKED FOR THE JUSTICE DEPARTMENT FROM 1974 TO 1983 IN VARIOUS CAPACITIES INCLUDING CHIEF OF THE FRAUD SECTION AND EXECUTIVE ASSISTANT US ATTORNEY IN MANHATTAN IN HER PRIVATE PRACTICE MS HARRIS REPRESENTS CLIENTS IN TAX SECURITIES ANTITRUST AND FRAUD CASES THIS WEEK PRESIDENT CLINTON IS EXPECTED TO NAME HIS CHOICE FOR DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH HAROLD VARMUS A NOBEL PRIZEWINNING MOLECULAR BIOLOGIST FROM THE UNIVERSITY OF CALIFORNIA IS THE LEADING CONTENDER ADMINISTRATION OFFICIALS SAID 9306280039 930628 TECHNOLOGY AIDS EXPERTS EASE STANCE SUPPORTING EARLY AZT TREATMENT MAKE IT OPTIONAL BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A PANEL OF AIDS EXPERTS BACKED AWAY FROM THE US STAND SUPPORTING EARLY AZT TREATMENT FOR HIV INFECTION LEAVING THE MATTER AS A JUDGMENT CALL BETWEEN DOCTOR AND PATIENT DEBATE WAS IGNITED THIS SPRING AFTER AN ANGLOFRENCH RESEARCH TEAM PUBLISHED A REPORT KNOWN AS THE CONCORDE STUDY SHOWING THAT EARLY AZT TREATMENT DOESN'T PROLONG SURVIVAL OF PEOPLE WITH HIV INFECTION WHO START TAKING THE DRUG BEFORE THEY DEVELOP AIDS THE NATIONAL INSTITUTES OF HEALTH PREVIOUSLY RECOMMENDED THAT PATIENTS WITH HIV INFECTION TAKE THE WELLCOME PLC DRUG AS SOON AS THEIR IMMUNE SYSTEMS DECLINE TO A POINT WHERE DISEASEFIGHTING WHITE BLOOD CELLS KNOWN AS CD4 CELLS FALL TO 500 OR ROUGHLY HALF THE NORMAL LEVEL AFTER THREE DAYS OF PUBLIC HEARING AND PRIVATE DELIBERATION THE PANEL CONVENED BY THE NIH BACKED AWAY FROM THAT POSITION THE PANEL'S RECOMMENDATION IS LIKELY TO COOL THE ENTHUSIASM OF PHYSICIANS PRESCRIBING AZT FOR INFECTED PEOPLE WHO DON'T YET HAVE AIDS HENCE THE PANEL DECISION MAY COOL AZT SALES IN WELLCOME'S LARGE US MARKET AN ESTIMATED ONE MILLION AMERICANS ARE INFECTED WITH HIV THE US STANDARD OF PRACTICE IS NOW TEMPERED TO SAY EARLY TREATMENT WITH AZT BECOMES PART OF THE DECISION PROCESS BETWEEN DOCTOR AND PATIENT SAID ANTHONY S FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES IN AN INTERVIEW SOME US DATA CONTRADICTS CONCORDE SUGGESTING EARLY TREATMENT MAY BENEFIT SOME PATIENTS HE SAID BUT THE OPTION OF NOT TREATING EARLY HIV INFECTION IS A VIABLE OPTION HE ADDED LEFT UNCHANGED IS THE CONSENSUS THAT PATIENTS WHO HAVE DEVELOPED AIDS SYMPTOMS SHOULD START ANTIVIRAL THERAPY DR FAUCI SAID HE SAID AZT REMAINS THE FIRST LINE OF DEFENSE AMONG SEVERAL ANTIVIRALS FOR PEOPLE WHO CANNOT TOLERATE AZT'S SIDE EFFECTS LIKE ANEMIA AND FOR PEOPLE WHOSE ILLNESS WORSENS DESPITE AZT TREATMENT THE PANEL RECOMMENDED SWITCHING TO ANOTHER ANTIVIRAL DRUG BRISTOLMYERS SQUIBB CO'S DDI DEPENDING ON A PATIENT'S SYMPTOMS AND IMMUNE STATUS THE PANEL OFFERED A WIDE MENU OF RECOMMENDATIONS AND OPTIONS INCLUDING THE ROCHE HOLDING LTD DRUG DDC AND VARIOUS DRUG COMBINATIONS DESIGNED TO EVADE BOTH DEBILITATING SIDE EFFECTS AND DRUGRESISTANT VIRUSES THE PANEL'S FORMAL RECOMMENDATIONS WILL BE PUBLISHED THIS SUMMER DR FAUCI SAID DR FAUCI SAID ALL PEOPLE WITH HIV SHOULD SEEK A DOCTOR'S CARE AND BE MEDICALLY MONITORED AS SOON AS THEY ARE DISCOVERED TO CARRY THE VIRUS GOOD CARE AND A HEALTHY LIFESTYLE CAN IMPROVE QUALITY AND LENGTH OF LIFE 9306280038 930628 THE SENATE'S TAX PACKAGE TOUGHEST TEST STILL LIES AHEAD FOR DEFICIT PLAN CONFEREES MUST RECONCILE SHARP CONFLICTS IN BILLS THAT GOT NO GOP VOTES BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON BARELY CLEARED THE HURDLE WITH HIS ECONOMIC PROGRAM IN THE SENATE JUST AS HE DID IN THE HOUSE AND NOW THE HIGHEST BAR YET LOOMS BETWEEN HIM AND THE FINISH LINE A CONFERENCE COMMITTEE OF HOUSE AND SENATE LEADERS MUST RECONCILE SEEMINGLY IRRECONCILABLE DIFFERENCES BETWEEN THE TWO CHAMBERS' BILLS BEGINNING AFTER CONGRESS'S JULY 4 BREAK CONSIDER ITS PREDICAMENT HOUSE DEMOCRATS PASSED THEIR VERSION OF MR CLINTON'S DEFICITREDUCTION PLAN LAST MONTH BY SIX VOTES SENATE DEMOCRATS TAILORED ONE TO THEIR NEEDS AND STILL NEEDED VICE PRESIDENT AL GORE'S TIEBREAKING VOTE TO PASS IT BEFORE DAWN LAST FRIDAY 5049 NOT A SINGLE REPUBLICAN SUPPORTED EITHER BILL HOW THEN CAN A COMPROMISE OF THE TWO VERSIONS PASS BOTH HOUSES I HAVE NO IDEA HOW THEY'LL RECONCILE THIS SAID REP CHARLES RANGEL OF NEW YORK A SENIOR DEMOCRAT ON THE TAXWRITING HOUSE WAYS AND MEANS COMMITTEE IT'S APPLES AND ORANGES CLINTON ADMINISTRATION OFFICIALS AND CONGRESSIONAL DEMOCRATIC LEADERS CONTINUE TO EXPRESS OPTIMISM TREASURY SECRETARY LLOYD BENTSEN PREDICTED ON CNN'S NEWSMAKER SUNDAY THAT THE BILL WILL BE PASSED BEFORE CONGRESS'S AUGUST RECESS IN THE END SUCCESS IS LIKELY FOR THE SAME REASON THAT HAS BEEN MORE IMPORTANT THAN ANY IN THE VICTORIES TO DATE FEAR THAT DEFEAT WOULD BE CRUSHING BOTH TO MR CLINTON AND HIS PARTY THE FUNDAMENTAL DRIVING FORCE RIGHT NOW IS THE FACT THAT THIS PLAN HAS MADE IT THROUGH THE HOUSE AND SENATE AND THE DRIVING ARGUMENT IS THAT WE HAVE NO ALTERNATIVE WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID IN AN INTERVIEW FRIDAY IF WE FAIL TO DELIVER ON THAT PLAN THE CONSEQUENCES OF THAT FAILURE COULD BE DEVASTATING NOT ONLY TO THE ECONOMY BUT TO DEMOCRATS AND THE ABILITY OF THE PRESIDENT TO GOVERN THE PRESIDENT CONTINUES TO EMPHASIZE THE GENERAL GOALS HE WANTS THE FINAL BILL TO MEET ABOUT 500 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS NEW TAXES THAT FALL HARDEST ON THE RICHEST TAXPAYERS TAX INCENTIVES FOR BUSINESS AND AN ENERGY TAX THAT'S BROADLY BASED BUT IN THE COMING BARGAINING HE'LL HAVE TO GET A LOT MORE SPECIFIC ABOUT THE DIRTY DETAILS THAN THAT ESPECIALLY ON THE ENERGY TAX HE ASSIDUOUSLY AVOIDED DOING SO IN THE SENATE SO THAT DEMOCRATIC LEADERS THERE HAD THE LEEWAY TO MAKE THE CHANGES NEEDED TO PASS HIS PROGRAM IN THAT CHAMBER WHERE DEMOCRATS' CONTROL ISN'T AS STRONG THE PRESIDENT HAS TO BE ACTIVELY INVOLVED SAID SEN JOHN BREAUX OF LOUISIANA THE FINANCE COMMITTEE MEMBER WHO SPONSORED A FUEL TAX INCREASE TO REPLACE MR CLINTON'S PROPOSED ENERGY TAX YOU CAN'T TAKE BOTH THE HOUSE AND SENATE BILLS' POSITIONS AS STICKY AS THE DIFFERENCES ARE MORE THAN THREEQUARTERS OF BOTH BILLS ARE IDENTICAL OR NEARLY SO TO MR CLINTON'S ORIGINAL BLUEPRINT THAT INCLUDES THE VARIOUS HIGHER TAXES FOR UPPERINCOME INDIVIDUALS AND BUSINESSES ALONG WITH SEVERAL BUSINESS TAX BREAKS IN THE BIGGEST CHANGES TO MR CLINTON'S PLAN THE HOUSE JUNKED HIS COSTLY INVESTMENT TAX CREDITS FOR LARGE AND SMALL BUSINESSES WHILE THE SENATE KILLED HIS BTU TAX ON ENERGY CONSUMPTION AS MEASURED IN BRITISH THERMAL UNITS OF HEAT FOR THE CONFEREES CRAFTING A COMPROMISE ENERGY TAX WILL BE THE FIRST TASK AND THE KEY TO RESOLVING OTHER PROBLEMS OR OPENING NEW ONES THE HOUSE RELUCTANTLY STUCK WITH MR CLINTON'S BTU TAX AFTER ADDING SOME EXEMPTIONS FOR MANUFACTURERS WHILE THE SENATE OPTED FOR A 43CENTAGALLON TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS THE BTU TAX WOULD RAISE 72 BILLION OVER FIVE YEARS WHILE THE FUEL TAX WOULD BRING IN LESS THAN ONETHIRD THAT AMOUNT AFTER THE SENATE DECIDED AT THE LAST MINUTE TO EXEMPT COMMERCIAL AVIATION FUEL MUCH SPECULATION NOW CENTERS ON A MARRIAGE OF A FUEL TAX THAT'S HIGHER THAN THE SENATE'S 43CENT LEVY AND A TAX ON RESIDENTIAL AND COMMERCIAL USE OF ELECTRICITY NATURAL GAS AND HEATING OIL ENERGY USED FOR MANUFACTURING IS ALL BUT CERTAIN TO BE UNTOUCHED WHATEVER IS DECIDED ABOUT THE ENERGY TAX IT WILL MEAN HIGHER TAXES THAN THE SENATE BILL CALLS FOR MEANWHILE LIBERALS IN BOTH CHAMBERS INSIST ON THE HOUSE BILL'S PROVISIONS CUTTING MEDICARE SPENDING LESS DEEPLY GIVING A MORE GENEROUS TAX CREDIT TO POOR WORKERS AND CREATING TAX INCENTIVES FOR BUSINESS INVESTMENT IN DEPRESSED AREAS OR EMPOWERMENT ZONES AMONG THEM THERE'S LINGERING TALK OF RAISING THE CURRENT 34 CORPORATE TAX RATE TO 36 INSTEAD OF 35 AS THE HOUSE BILL AND MR CLINTON SUPPORT MEANWHILE PARTY CONSERVATIVES FAVOR THE HOUSE'S MORE GENEROUS TAX INCENTIVES FOR BUSINESS YET ALL SUCH ADJUSTMENTS RUN THE RISK OF THROWING OUT OF WHACK THE 1TO1 RATIO OF SPENDING CUTS TO TAX INCREASES THAT CONSERVATIVE DEMOCRATS BELIEVE THEY WON IN THE SENATE LEAVING A PRODUCT THAT WOULD BE WEIGHTED IN FAVOR OF HIGHER TAXES AS REPUBLICANS INSIST THE HOUSE AND SENATE BILLS ALREADY ARE AND JEOPARDIZING CONSERVATIVE DEMOCRATS' VOTES IN BOTH HOUSES SCORES OF LAWMAKERS ARE NAMED TO THE CONFERENCE THAT MUST FIND A COMPROMISE BUT THE BULK OF THE WORK WILL BE DONE BEHIND CLOSED DOORS BY A FEW MEN WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL FOR THE HOUSE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY AND MAJORITY LEADER GEORGE MITCHELL OF MAINE FOR THE SENATE AND MR CLINTON OR HIS DELEGATE GIVEN THE DELICATE BALANCE THEY MUST STRIKE HOWEVER THEY WILL BE FORCED TO CONSULT REPEATEDLY WITH LAWMAKERS DOWN TO THE LOWLIEST FRESHMAN IN FACT THE HOUSE'S BUDGETCONSCIOUS FRESHMAN DEMOCRATS ALREADY HAVE BEEN MEETING TO DISCUSS THEIR POSITIONS RANKANDFILE DEMOCRATS WHO SUPPORTED THE HOUSE AND SENATE BILLS ALREADY ARE SQUARING OFF TO WARN THE PRESIDENT AND PARTY LEADERS OF THEIR BOTTOM LINES FOR THE COMPROMISE AND THE SUM DOESN'T ADD UP IN THE HOUSE CONSERVATIVE REP DAVID MCCURDY D OKLA SAID MANY OF US THINK THE SENATE'S IS A BETTERLOOKING PACKAGE BECAUSE IT DROPS THE BTU TAX AND HAS MORE SPENDING CUTS BUT REP RANGEL A LEADER IN THE CONGRESSIONAL BLACK CAUCUS THAT GAVE ALL 38 OF ITS HOUSE VOTES TO MR CLINTON SAID THAT FACTION WILL NOT EVEN LOOK AT THE SENATE BILL IT'S NOT EVEN NEGOTIABLE CHIEF AMONG HIS DEMANDS ARE THE EMPOWERMENT ZONES AND THAT'S THE DETAIL OF THE TWO BILLS THAT MR CLINTON HAS MOST CONSISTENTLY DEMANDED IN THE SENATE CONSERVATIVE SEN DAVID BOREN D OKLA CALLED A NEWS CONFERENCE WITHIN HOURS OF FRIDAY'S SENATE VOTE TO SAY HE IS IN NO WAY COMMITTED TO VOTE FOR THE FINAL CONFERENCE REPORT DEPLORING A SENATE VOTE TO CUT MEDICARE SPENDING 58 BILLION OVER FIVE YEARS INSTEAD OF 67 BILLION AS THE FINANCE PANEL PROPOSED MR BOREN SAID HE'D SUPPORT NO FURTHER RETREATS BUT THE HOUSE PROPOSED ABOUT 50 BILLION AND SEN BARBARA MIKULSKI D MD SAID IT'S TIME THE PRESIDENT SIDES WITH LIBERAL DEMOCRATS ON ISSUES LIKE MEDICARE INSTEAD OF WITH SABOTEURS LIKE MR BOREN MODERATE SEN JOSEPH LIEBERMAN D CONN SAID THAT IN RETURN FOR HIS VOTE MR CLINTON PROMISED TO BACK MOREGENEROUS HOUSE PROVISIONS FOR TAX BENEFITS TO SMALL BUSINESSES THE REAL ESTATE INDUSTRY AND CORPORATIONS PAYING THE ALTERNATIVE MINIMUM TAX BUT THE CONFEREES' ABILITY TO FINANCE SUCH BREAKS WILL DEPEND ON THE SIZE OF THE ENERGY TAX AND LIBERAL SEN HERBERT KOHL OF WISCONSIN WHO VOTED FOR THE SENATE BILL THOUGH HE DECRIED ITS ENERGY TAX AS A BURDEN TO LOWERINCOME TAXPAYERS SAID IF THAT THING STARTS TO GROW I'VE GOT REAL PROBLEMS THE ADMINISTRATION AND CONGRESSIONAL LEADERS ARE BANKING ON THE FACT THAT LAWMAKERS TYPICALLY DON'T SWITCH SIDES ON SUCH AN ISSUE BETWEEN THEIR FIRST VOTE AND THE FINAL ONE ON A CONFERENCE REPORT THE HARD VOTE HAS BEEN MADE ALREADY SAID CONSERVATIVE REP BUDDY DARDEN D GA WHO HAS BEEN A TARGET OF GOP ADS IN HIS DISTRICT THAT CALCULUS IS SHAKY HOWEVER IF THE FINAL PRODUCT DIFFERS IN WAYS THAT ARE CRITICAL TO SOME FORMER SUPPORTERS AS THIS PACKAGE COULD AT THE SAME TIME WITH THE BTU TAX DEAD HOUSE LEADERS HOPE TO CONVERT SOME OF THE 38 LAWMAKERS MANY OF THEM FROM ENERGYPRODUCING STATES WHO VOTED AGAINST THE HOUSE BILL MAJORITY LEADER RICHARD GEPHARDT D MO MET WITH SOME OF THEM LAST WEEK THE PRESIDENT FOR THE MOST PART FAVORS THE HOUSE BILL BUT THE CLOSENESS OF LAST WEEK'S VOTE IN THE SENATE ILLUSTRATED WHY HE'LL BE AT HIS GREATEST PAINS TO SATISFY DEMOCRATS THERE SIX OF THE 56 DEMOCRATS BROKE RANKSSENS RICHARD BRYAN OF NEVADA DENNIS DECONCINI OF ARIZONA FRANK LAUTENBERG OF NEW JERSEY RICHARD SHELBY OF ALABAMA BENNETT JOHNSTON OF LOUISIANA AND SAM NUNN OF GEORGIA A SEVENTH SEN PATTY MURRAY OF WASHINGTON WAS ABSENT TO RECUPERATE FROM SURGERY BUT WOULD HAVE SUPPORTED THE PRESIDENT DEMOCRATS PRIVATELY SAY IT'S DIFFICULT TO IMAGINE THAT ANY OF THE SIX WOULD RETURN TO THE FOLD ALTHOUGH PARTY SOURCES SAY SOME DISSIDENTS INCLUDING SENS JOHNSTON AND DECONCINI WOULD HAVE BACKED THE BILL HAD THEIR VOTES BEEN ESSENTIAL MAJOR DIFFERENCES IN THE TAX BILLS PASSED BY THE HOUSE AND SENATE WITH FIVEYEAR REVENUE ESTIMATES ABOVE 140000 115000 FOR INDIVIDUALS AND TO 396 FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 EFFECTIVE 1/1/93 KEEP TOP CAPITALGAINS TAX RATE AT 28 WOULD RAISE 1155 BILLION INCOME ABOVE 32000 25000 FOR INDIVIDUALS WOULD RAISE 3199 BILLION IMPOSE NEW BROADBASED ENERGY TAX BASED ON HEAT CONTENT OF FUELS WOULD EQUAL 76 CENTS A GALLON FOR GASOLINE FOR EXAMPLE BEGINNING 7/1/94 WOULD RAISE 715 BILLION YEARS WITH TAX INCENTIVES FOR INVESTMENT AND HIRING WOULD COST 52 BILLION CUT CAPITALGAINS TAX IN HALF FOR INVESTMENTS IN ELIGIBLE SMALL BUSINESSES WOULD REDUCE REVENUES BY 950 MILLION ALLOW SMALL BUSINESSES TO WRITE OFF UP TO 25000 IN EQUIPMENT PURCHASE FROM CURRENT 10000 WOULD REDUCE REVENUES 81 BILLION COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 353 THIS YEAR AND 396 THEREAFTER FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 RAISE CAPITALGAINS TAX RATE FOR THOSE WITH TAXABLE INCOME ABOVE 250000 TO 294 THIS YEAR AND 308 NEXT YEAR WOULD RAISE 1067 BILLION INCOME ABOVE 40000 32000 FOR INDIVIDUALS WOULD RAISE 262 BILLION CENTS A GALLON EFFECTIVE 10/1/93 WOULD RAISE 2157 BILLION PURCHASES WOULD REDUCE REVENUES MORE THAN 6 BILLION 9306280037 930628 MULTIMEDIA IN MAKING CDROMS TECHNOLOGY PROVES EASY COMPARED WITH RIGHTS NEGOTIATIONS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A NEW MULTIMEDIA COMPUTER DISK CALLED ISAAC ASIMOV'S THE ULTIMATE ROBOT DOESN'T SHOW JANE PAULEY'S FACE AND THEREIN LIES A TALE WHILE ASSEMBLING MATERIAL FOR THE CDROM DISK WHICH FEATURES A VAST CATALOG OF WORDS AND PICTURES ABOUT ROBOTS PUBLISHER BYRON PREISS BOUGHT THE RIGHTS FROM THE NBC NETWORK TO SHOW THE SCIENCEFICTION WRITER RECITING HIS LAWS OF ROBOTICS DURING A 1987 INTERVIEW ON THE TODAY SHOW BUT NBC SAID A SEPARATE NEGOTIATION WOULD BE REQUIRED TO SHOW MS PAULEY SO MR PREISS DECIDED TO EDIT HER OUT MAYBE JANE WOULD HAVE SAID YES' BUT WE HAD SO MANY OTHER RIGHTS TO CLEAR IT WAS EASIER JUST TO SHOW A BLANK SCREEN WHEN SHE'S ON CAMERA MR PREISS SAYS IF I HAD REALIZED WHAT A NIGHTMARE IT WOULD BE GETTING ALL THESE RIGHTS I WOULD NEVER HAVE DONE THIS PROJECT IN THE BRAVE NEW WORLD OF CDROM TEDIOUS COPYRIGHT NEGOTIATIONS ARE PROVING A LOWTECH OBSTACLE ON THE WAY TO MARKET CONSUMER DEMAND IS BRISK FOR THESE COMPACT DISKS THAT PLAY VIDEO AUDIO AND TEXT ON COMPUTER SCREENS HARDWARE MAKERS ARE NOW ROUTINELY PRODUCING COMPUTERS EQUIPPED TO PLAY THEM WITHOUT ATTACHMENTS SEVERAL THOUSAND CDROM TITLES HAVE BEEN RELEASED IN THE PAST SEVERAL YEARS AND WHILE MANY ARE USED FOR SALES PRESENTATIONS OR REFERENCE MANUALS THE FASTESTGROWING CATEGORY IS ENTERTAINMENT SAYS DAVID BUNNELL EDITOR IN CHIEF OF NEWMEDIA MAGAZINE BUT THE CREATORS OF ENTERTAINMENT SOFTWARE ESPECIALLY FACE KNOTTY COPYRIGHT PROBLEMS THAT THREATEN TO WORSEN BEFORE THEY GET BETTER IN THIS FREEWHEELING NEW MARKETPLACE AGENTS FOR CREATORS IN EVERY MEDIUM ARE BECOMING HIGHLY PROTECTIVE OF ELECTRONIC RIGHTS THIS IS LIKE THE EARLY DAYS OF TELEVISION THIS IS PREHOWDY DOODY TIME FOR CDROM AND THE RIGHTS HAVEN'T BECOME THAT VALUABLE YET SAYS LITERARY AGENT ED VICTOR WHO RECOMMENDS THAT AGENTS ZEALOUSLY GUARD SUCH RIGHTS THOSE WHO HOLD ELECTRONIC RIGHTS TO WORDS AND IMAGES HAVE KILLED SOME POTENTIAL CDROM PROJECTS BY MAKING THEM TOO EXPENSIVE FOR MULTIMEDIA PRODUCERS THE TASK OFTEN MEANS DICKERING WITH NERVOUS NEOPHYTES A STAGGERING NUMBER OF TIMES FOR EXAMPLE ONE CDROM CAN HOLD THE COMPLETE TEXT AND PICTURES OF AN ENCYCLOPEDIA ADDING UP TO THOUSANDS OF INDIVIDUAL COPYRIGHTS EVENTUALLY MR TURELL NEGOTIATED THE RIGHTS TO VIDEO AND AUDIO CLIPS REPRESENTING ABOUT 65 GREAT MOMENTS IN BASEBALL HISTORY BUT THERE WERE SERIOUS RESTRICTIONS VOYAGER COULD ONLY SHOW VIDEOS OF PLAYERS WHO HAD RETIRED OR DIED SO THERE IS NO VIDEO OF PITCHER NOLAN RYAN'S SEVENTH CAREER NOHITTER FOR EXAMPLE MAJOR LEAGUE BASEBALL SAID WE WEREN'T PAYING THEM ENOUGH MONEY FOR THE TROUBLE OF SORTING ALL THAT OUT WITH THE PLAYERS' UNION MR TURELL SAYS MANY OF THESE INFORMATIONCRAMMED DISKS SELL FOR BETWEEN 30 AND 80 AT RETAIL SO RIGHTS FOR INDIVIDUAL SEGMENTS CAN'T COST MORE THAN A FEW CENTS PER DISK VOYAGER WANTED TO PRODUCE A CDROM THAT INCLUDED 16 VERSIONS OF THE SONG BODY AND SOUL BUT THE SONG'S OWNERS WANTED ABOUT 8 IN ROYALTIES PER DISK SAYS MR STEIN SO THE PROJECT WAS ABANDONED WE WANTED TO SELL IT WHOLESALE FOR 15 HE SAYS AMID ALL THE HYPE ABOUT MULTIMEDIA RIGHTS HOLDERS MAY HAVE UNREALISTIC EXPECTATIONS ABOUT THE ROYALTIES THEY CAN EXPECT YES THIS IS A BOOMING INDUSTRY BUT IT'S NOT LIKE BLOCKBUSTERS IN BOOKS OR RECORDS SAYS NORMAN BASTIN GENERAL MANAGER OF COMPTON'S NEWMEDIA INC A FEW TOP TITLES SELL 100000 COPIES BUT 5000 IS CONSIDERED VERY GOOD COMPTON'S WHICH HAS SOME 40 CONSUMER CDROM TITLES ON THE MARKET SAYS IT HIT THE MOST SNAGS WITH A HISTORY OF THE GRAMMY AWARDS RELEASED LAST FALL THE DISK WAS DELAYED MORE THAN EIGHT MONTHS WHILE COMPTON'S HAGGLED OVER RIGHTS FOR THE PHOTOGRAPHS AND MUSIC WE PLANNED TO SHOW MOST OF THE WINNERS PERFORMING THE WINNING SONGS BUT THE RIGHTS WERE SO EXPENSIVE AND TIMECONSUMING TO GET THAT WE DECIDED TO SKIP VIDEO COMPLETELY SAYS MR BASTIN THE NATIONAL ACADEMY OF RECORDING ARTS AND SCIENCES THOUGHT THEY OWNED ALL THE RIGHTS AS THE SHOW'S PRODUCER BUT EACH PERFORMER HAD RIGHTS TOO TO MAKE IT FEASIBLE WE DIDN'T EVEN INCLUDE ENTIRE SONGS IN AUDIO YOU GET 30 SECONDS AT THE MOST THE DEPTH OF INFORMATION AND CROSSREFERENCING OF MEDIA THAT MAKES CDROMS SO DIFFICULT TO COPYRIGHT IS PRECISELY WHAT MAKES THE FINISHED PRODUCT SO EXCITING TO BROWSE MR PREISS'S ROBOT CDROM WHICH WILL ARRIVE IN STORES IN LATE SUMMER SHOWS THE COMPLEXITY OF ASSEMBLY AND THE VALUE OF CONQUERING THE PROBLEMS MR PREISS 40 YEARS OLD HAD PUBLISHED BOOKS BY MR ASIMOV BEFORE HE CONCEIVED THE IDEA OF USING MULTIMEDIA TO SHOW THAT THE FANTASY OF THIS SCIENCEFICTION GENIUS HAD BECOME REALITY SEVERAL YEARS AGO MR ASIMOV NEARING DEATH AT THE TIME AND UNABLE TO ASSIST MUCH GAVE THE PROJECT HIS BLESSING THAT WAS THE EASY PART IT TURNED OUT THAT THE WRITER DIDN'T OWN THE RIGHTS TO LOTS OF HIS STORIES ABOUT ROBOTS AND MR PREISS HAD TO NEGOTIATE SEPARATELY WITH MR ASIMOV'S VARIOUS PUBLISHERS ALTHOUGH HE DIDN'T HAVE TOO MUCH TROUBLE NEGOTIATING THE USE OF VIDEOS SHOWING INDUSTRIAL ROBOTS IN ACTION MR PREISS GOT THE COLD SHOULDER IN HOLLYWOOD ULTIMATE ROBOT INCLUDES BRIEF CLIPS OF ROBOTS IN ABOUT A DOZEN MOVIES LIKE 2001 A SPACE ODYSSEY BUT THERE IS NO SCENE FROM BLADE RUNNER AMONG OTHERS TIME WARNER INC'S WARNER BROS WHICH MADE THAT MOVIE HAS A NEAR BLANKET POLICY OF REFUSING TO GRANT SUCH RIGHTS OTHER STUDIOS DEMANDED CLAUSES SO RESTRICTIVE THAT THEY COULD HAVE THEIR FILM CLIPS REMOVED IF THEY DIDN'T LIKE HOW THEIR MATERIAL WAS USED ANTICIPATING SUCH OBSTACLES SOFTWARE PRODUCERS ARE WORKING AROUND THEM FOR EXAMPLE USING ORIGINAL MATERIAL FOR THE ROBOT PROJECT MR PREISS HIRED ILLUSTRATOR RALPH MCQUARRIE WHO DESIGNED THE ROBOTS FOR THE STAR WARS MOVIES TO CREATE ROBOT PARTS THAT COULD BE MIXED AND MATCHED ON THE SCREEN USERS OF THE DISK CAN INSERT THEIR CUSTOMIZED ROBOTS INTO MINIMOVIES WHERE THEY JUMP DANCE AND TALK ELECTRONIC PUBLISHERS ALSO ARE STOCKPILING DATABASES OF IMAGES AND TEXT WHICH EVENTUALLY WILL MAKE PRODUCING CDROMS FASTER AND CHEAPER COMPTON'S MR BASTIN SAYS HIS COMPANY HAS LICENSED MORE THAN 200 BOOKS FROM 25 MAJOR PUBLISHERS IN THE PAST 18 MONTHS AMONG THEM ARE COOKBOOKS AND CELEBRITY FITNESS BOOKS MICROSOFT CORP HAS STIRRED CONTROVERSY IN RECENT YEARS WITH ITS EFFORTS TO LICENSE WHOLE LIBRARIES OF PHOTOGRAPHS INCLUDING IMAGES OF ENTIRE MUSEUM COLLECTIONS SOME IN THE INDUSTRY SAY THE RIGHTS BATTLES MAY EASE AS MORE DISKS ARE PRODUCED PEOPLE WERE TREMENDOUSLY RESISTANT TO US A YEAR AND A HALF AGO WHEN WE WERE ACQUIRING LICENSES AND PEOPLE PUT OUT STORIES ABOUT GREEDY MICROSOFT SAYS ED KELLY ACQUISITIONS MANAGER IN MICROSOFT'S CONSUMER DIVISION BUT WE AREN'T TRYING TO LOCK THIS STUFF UP WITH EXCLUSIVE LICENSES AND RIGHTS HOLDERS ARE BEGINNING TO SEE THIS IS A POSITIVE BUSINESS FOR THEM 9306280036 930628 CREDIT MARKETS IF YOU'RE TRYING TO FOLLOW BOND MARKET TRENDS EXPERTS SAY DON'T BOTHER WITH THE 30YEAR ISSUE BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL THE FIRST TWO WORDS ARE OFTEN USED TO DESCRIBE THE 30YEAR TREASURY BOND BUT FOR MANY ANALYSTS AND TRADERS THE LAST WORD IS MORE APPROPRIATE THEY SAY THE 30YEAR BOND IS OFTEN NOT THE BEST INSTRUMENT TO USE WHEN TRYING TO GAUGE MOVEMENTS IN THE WORLD'S LARGEST MARKET FOR FIXEDINCOME INVESTMENTS INSTEAD INVESTORS MAY BE BETTER OFF TRACKING THE ACTIVITY OF SHORTERTERM ISSUES SUCH AS THE FIVEYEAR NOTE AND THE 10YEAR NOTE THE 30YEAR BOND OFTEN TRADES IN A WORLD OF ITS OWN IN A WAY QUITE DIFFERENT FROM TREASURY SECURITIES WITH SHORTER MATURITIES SAYS ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS IT'S A SPECIAL MATURITY AND TENDS TO REACT TO SPECIAL FACTORS THAT MAY NOT BE OF RELEVANCE TO OTHER TREASURY MATURITIES IT DOES NOT NECESSARILY REFLECT THE OVERALL TONE OF THE MARKET INTERMEDIATE SECURITIES SUCH AS THE FIVEYEAR NOTE ARE PROBABLY A MUCH BETTER BAROMETER OF THE MARKET SAYS MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP THE 30YEAR BOND THOUGH IT IS OFTEN CALLED A BENCHMARK FOR THE ENTIRE MARKET MAY NOT REACT TO EVENTS THAT HAVE A MAJOR IMPACT ON TREASURYS WITH SHORTER MATURITIES MOVEMENTS RELATED TO POSSIBLE CHANGES IN MONETARY POLICY BY THE FEDERAL RESERVE FOR EXAMPLE MAY NOT BE REFLECTED BY THE LONG BOND THAT IS BECAUSE THE FED CUTS OR INCREASES SHORTTERM INTEREST RATES WHEN ALTERING POLICY DURING MAY AND EARLY JUNE FOR EXAMPLE THE YIELD ON THE TWOYEAR NOTE SKYROCKETED FROM 380 TO NEARLY 430 IN RESPONSE TO FEARS THAT THE FED MIGHT HAVE TO RAISE SHORTTERM RATES AT THE SAME TIME THE YIELD ON THE 30YEAR BOND ROSE ONLY MODESTLY FROM 685 TO 706 AND QUICKLY FELL BACK TO AROUND 687 RATES ON THE FIVEYEAR NOTE WHICH IS IN THE MIDDLE OF THE TREASURY MATURITY SPECTRUM HAD AN INTERMEDIATE PERFORMANCE IN THAT SAME THREEWEEK SPAN THE YIELD ON THE FIVEYEAR NOTE ROSE FROM 515 TO 538 AND THEN HELD AT THE HIGHER LEVEL THE FIVE YEAR NOTE IS A FULCRUM FOR THE CURVE SAYS MR ALEXY OF FIRST BOSTON IF YOU LOOK AT THE 30YEAR BOND YOU'D SAY NOTHING DRAMATIC HAS HAPPENED BUT AS WE KNOW SHORTERTERM TREASURYS MOVED A LOT HE SAYS THE FIVE YEAR HOWEVER CATCHES A GOOD PART OF THE MOVEMENT BUT DOESN'T EXPRESS IT TO THE EXTREMES OF TREASURYS WITH SHORTER MATURITIES INVESTORS WHO USE THE 30YEAR BOND AS AN INDICATION OF CONSUMER INTEREST RATES COULD ALSO BE LOOKING IN THE WRONG PLACE IF THE MAN ON THE STREET IS INTERESTED IN A MORE GENUINE REFLECTION OF RATES OFF WHICH THE REAL WORLD FUNCTIONS THE 10YEAR WOULD BE THE ISSUE TO FOCUS ON SAYS ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS & CO THE ECONOMY DOES NOT RUN ON 30YEAR MONEY MORTGAGES RATES ARE MORE CLOSELY CORRELATED WITH SEVEN AND 10YEAR YIELDS CONSUMERS CONCERNED WITH ADJUSTABLERATE MORTGAGES SHOULD TYPICALLY FOCUS THEIR ATTENTION ON ONEYEAR TREASURY BILLS MARKETWATCHERS ADD ANOTHER TROUBLE WITH 30YEAR BOND ARISES WHEN AN INVESTOR WANTS TO COMPARE RATES IN THE US WITH THOSE IN OTHER COUNTRIES FOR MOST OTHER NATIONS GERMANY AND JAPAN FOR EXAMPLE THE BENCHMARK SECURITIES IS A 10YEAR MATURITY THE US IS THE ONLY COUNTRY THAT REGULARLY ISSUES 30YEAR BONDS SAY MARKET ANALYSTS FURTHERMORE THE MARKET FOR TRADING AND INVESTING IN THE 30YEAR BOND IS NARROW COMPARED WITH THAT OF SHORTER TREASURY MATURITIES THIRTYYEAR BOND TRADING IS DOMINATED BY A FEW PRIMARY DEALERS SUCH AS FIRST BOSTON GOLDMAN SACHS LEHMAN BROTHERS MERRILL LYNCH MORGAN STANLEY AND SALOMON BROTHERS THE NUMBER OF PEOPLE WHO PARTICIPATE IN THE BOND IS NOT AS BROAD AS THE NUMBER WHO PARTICIPATE IN THE FIVEYEAR NOTESAYS MR ALEXY OF FIRST BOSTON EVEN ON A BUSY DAY ACTIVITY IN SHORTER ISSUES FAR OUTSTRIPS THAT OF 30YEAR BONDS SAY TRADERS THIS MAKES THE 30YEAR BOND MORE VULNERABLE TO SUDDEN AND SHARP PRICE SWINGS EARLIER THIS MONTH FOR EXAMPLE THE TREASURY MARKET RALLIED ON NEWS OF LOWER INFLATION FOR MAY ACCORDING TO THE PRODUCER PRICE INDEX FOR THAT MONTH ABOUT 689 BILLION OF THE CURRENT 5 3/8 FIVEYEAR NOTE CHANGED HANDS ACCORDING TO GOVPX A TREASURY PRICING SERVICE THAT WAS ABOUT 627 OF THE TOTAL AMOUNT OF THE ISSUE OUTSTANDING ON THE SAME DAY ONLY 105 BILLION OF THE CURRENT 7 1/8 30YEAR BOND WERE TRADED ABOUT 127 OF THE ISSUE OUTSTANDING THE MARKET FOR TRADING THE 30YEAR BOND WILL BE THINNED FURTHER BY THE TREASURY DEPARTMENT'S DECISION EARLIER THIS YEAR TO SHIFT ITS BORROWING AWAY FROM LONGER ISSUES AS PART OF THAT CHANGE THE TREASURY PLANS TO CUT THE AMOUNT OF 30YEAR BONDS ISSUED EACH YEAR TO ABOUT 22 BILLION FROM ABOUT 40 BILLION IN RECENT YEARS THAT WILL MAKE THE 30YEAR BOND THE SMALLEST CLASS OF REGULARLY ISSUED TREASURY SECURITIES LIQUIDITY IN THAT SECTOR IS GOING TO BE MUCH LESS THAN IT WAS IN THE PAST SAYS SURESH KRISHNAN SENIOR FIXEDINCOME STRATEGIST AT MERRILL LYNCH & CO WHEN LIQUIDITY DRIES UP IN AN ISSUE A CLASS OF BOND LOSES ITS IMPORTANCE THE 30YEAR BOND IS POPULAR WITH PENSION FUNDS INSURANCE COMPANIES AND LONGTERM BOND FUNDS SAY DEALERS AND LATELY LEVERAGED FUNDS HAVE BEEN USING ARBITRAGE TO TAKE ADVANTAGE OF THE WIDE GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES BUT JOE SIXPACK DOESN'T TRADE THE LONG BOND MOST INDIVIDUALS DON'T PUT THEIR MONEY ON 30YEAR BONDS IT'S MORE OF A CONVERSATION PIECE SAYS JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC THE BOND STILL SHINES THOUGH AS A REFLECTION OF INFLATION EXPECTATIONS TREASURY YIELDS FINISHED SLIGHTLY LOWER FRIDAY WITH THE 30YEAR BOND HITTING ITS LOWEST YIELD SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 THE BOND YIELDED 670 DOWN FROM 673 ON THURSDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 105 12/32 CONTRIBUTING TO POSITIVE SENTIMENT WAS THE SENATE PASSAGE OF THE DEFICITREDUCTION PACKAGE THOUGH MARKET RESPONSE WAS JUST A LITTLE BETTER THAN LACKLUSTER THE MARKET PAID LITTLE ATTENTION TO DATA THAT SHOWED SALES OF EXISTING HOMES WERE UP 46 IN MAY THE BOND MARKET REMAINS CAUTIOUSLY OPTIMISTIC BUT HASN'T ENOUGH NEWS TO ENCOURAGE MAJOR MOVES ACCORDING TO DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS MANY SPECULATORS ARE BETTING THAT THERE WILL BE A FURTHER NARROWING OF THE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES SAID WILLIAM BRACHFELD HEAD OF GOVERNMENT SECURITIES TRADE AT DAIWA SECURITIES AMERICA INC WITH LONGTERM RATES CONTINUING TO FALL NOW BOND PLAYERS ARE ASKING THEMSELVES WHAT IT WILL TAKE TO PUSH THE MARKET DEFINITELY ONE WAY OR THE OTHER MOST AREN'T LOOKING TO WASHINGTON FOR THE IMPETUS EVERYBODY UNDERSTANDS THERE'S A DIFFICULT CONFERENCE PROCESS AHEAD FOR THE DEFICITREDUCTION BILL SAID MR JOHNSON OF FIRST CHICAGO CAPITAL MARKETS IN REFERENCE TO THE JOINT CONGRESSIONAL CONFERENCE THAT WILL WRANGLE WITH THE BILL IN THE WEEKS AHEAD I THINK IT'S A CLEARER SIGNAL ON THE ECONOMY THAT WILL BREAK THE MARKET OUT THE CURRENT RANGE SAID ALAN LEVENSON MONEY MARKET ECONOMIST AT UBS SECURITIES INC 9306280035 930628 OTC FOCUS ANALYSTS EXPECT SIZZLING IPO PACE TO CONTINUE IN SECOND HALF OF 1993 BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INITIAL PUBLIC OFFERINGS OF STOCK RAISED A RECORD 25 BILLION IN THE FIRST HALF OF 1993 A PACE THAT MANY ANALYSTS THINK WILL CONTINUE FOR THE REST OF THE YEAR WE'RE GOING TO KEEP HAVING ABOUT 50 OFFERINGS A MONTH UNTIL THERE IS EITHER A CORRECTION IN THE MARKET OR A BIG SLOWDOWN IN MONEY FLOWING INTO EQUITIES SAYS ANALYST ROBERT NATALE OF STANDARD & POOR'S CORP WITH THREE DAYS REMAINING THE FIRST HALF OF THIS YEAR HAS BEEN A BLOCKBUSTER FOR IPOS THERE HAVE BEEN 325 SO FAR INCLUDING CLOSEDEND INVESTMENT FUNDS AND THERE WERE ABOUT 70 MORE DEALS PENDING AS OF THE END OF LAST WEEK SAYS LESLIE FELDMAN AN ANALYST WITH SECURITIES DATA CO ON FRIDAY ANOTHER TWO HOT IPOS POPPED UP BACK YARD BURGERS JUMPED TO 10 1/4 FROM ITS INITIAL OFFERING PRICE OF SIX THROUGH ITS UNDERWRITER FRANKLINLORD INC BACK YARD BURGERS OPERATES AND FRANCHISES QUICKSERVICE DRIVETHRU RESTAURANTS LOTTERY ENTERPRISES LEAPT TO 11 5/8 FROM ITS OFFERING PRICE OF NINE COMMONWEALTH ASSOCIATES IS THE MANAGING UNDERWRITER OF THE OFFERING THAT ISN'T TO SAY THAT THE DELUGE HASN'T SEEN A FEW SETBACKS LAST WEEK RJR NABISCO HOLDINGS CANCELED ITS 17 BILLION NABISCO STOCK OFFERING BLAMING THE POOR MARKET FOR FOOD STOCKS RJR HAD PLANNED TO CREATE A SEPARATE CLASS OF STOCK TIED TO ITS NABISCO FOOD COMPANY THE OFFERING WHICH WAS SUPPOSED TO COME BETWEEN 17 AND 19 A SHARE WAS A TOUGH SELL ON WALL STREET MR NATALE SAYS RJR'S WITHDRAWAL DOESN'T REFLECT BADLY ON THE MARKET ENVIRONMENT DON'T LOOK AT THE CANCELLATION OF RJR AS A PARTICULAR SIGN OF WEAKNESS HE SAYS IT WASN'T A STRONG DEAL IN THE FIRST PLACE BUT PARISIAN POSTPONED ITS IPO FRIDAY BLAMING THE CURRENT RETAIL ENVIRONMENT AND THE UNFAVORABLE MARKET FOR RETAIL STOCKS THE COMPANY SAYS IT WILL INCREASE THE AMOUNT OF ITS DEBT OFFERING TO 125 MILLION FROM 110 MILLION OVERALL THE RUSH OF IPOS HAS BEEN GOOD FOR INVESTORS DURING THE PAST SIX MONTHS THE AVERAGE IPO HAS GAINED 14 A FAR BETTER PERFORMANCE THAN THE OVERTHECOUNTER MARKET WHERE MOST IPOS ARE TRADED SINCE THE BEGINNING OF THE YEAR THE NASDAQ COMPOSITE INDEX HAS EDGED UP ONLY 26 LEAPING 609 TO 69481 ON FRIDAY IRONICALLY SOME ANALYSTS BLAME THE SUCCESS OF THE IPOS FOR THE OVERTHECOUNTER MARKET'S LAGGARD PERFORMANCE THE LARGE NUMBER OF OFFERINGS SOAKED UP A LOT OF CASH AND IN PART HAS CONTRIBUTED TO A LACKLUSTER STOCK MARKET SAYS MR NATALE THERE'S BEEN AN INCREASE IN THE SUPPLY OF EQUITIES TO MEET THE DEMAND OTHERWISE STOCK PRICES WOULD HAVE GONE HIGHER AND IN ANY EVENT THE AVERAGE INDIVIDUAL INVESTOR HASN'T BEEN ABLE TO ENJOY THOSE STEEP IPO GAINS USUALLY ONLY BIG INSTITUTIONAL CLIENTS ARE GIVEN A SHOT AT OBTAINING SHARES IN AN IPO LOWLY INDIVIDUALS HAVE TO BUY THE STOCKS LATER USUALLY AT A MUCH HIGHER PRICE EVEN THE INSTITUTIONAL INVESTORS WHO HAVE ACCESS TO IPOS DON'T OFTEN HANG ON TO THE STOCKS FOR VERY LONG IN SOME RESPECTS THE INSTITUTIONS ARE WISE TO TREAT THE NEW OFFERINGS AS SHORTTERM EVENTS SAYS CHARLES MORRIS MANAGER OF T ROWE PRICE'S SCIENCE AND TECHNOLOGY FUND IF IT'S A HOT DEAL YOU CAN ONLY GET A FEW THOUSAND SHARES IT'S NOT WORTH SPENDING A DAY READING ABOUT A COMPANY MR MORRIS SAYS HE FINDS IT MORE LUCRATIVE TO DIG THROUGH STOCKS ALREADY ON THE MARKET THE IPO WINDOW HAS BEEN OPEN SO WIDE FOR SO LONG THAT MOST OF THE GOOD STUFF IS ALREADY GONE HE SAYS IT'S THE SEVENTH INNING OF THE SECOND GAME OF A DOUBLEHEADER YET EVEN THOUGH MONEY MANAGERS LIKE MR MORRIS MAY BE GETTING TIRED OF THE RUBBER CHICKEN ROADSHOW LUNCHES AT WHICH COMPANIES PITCH THEIR COMING IPOS FEW EXPECT THE SCHEDULE TO SLACKEN MUCH THOMAS DAVIS HEAD OF EQUITY CAPITAL MARKETS AT MERRILL LYNCH SAYS AS LONG AS INTEREST RATES STAY LOW THE OVERALL MARKET ENVIRONMENT WILL REMAIN FAVORABLE TO NEW ISSUES MONEY MANAGERS MIGHT BE OVERLOADED WITH INFORMATION BUT THE BASIC ELEMENTS OF STRONG DEMAND ARE STILL IN PLACE MR DAVIS SAYS THE NEWISSUES MARKET WILL SOFTEN AT SOME POINT IT ALWAYS DOES BUT RIGHT NOW THERE IS STILL A SOLID FLOW OF FUNDS INTO INSTITUTIONAL INVESTORS' HANDS AND GOOD RETAIL ACTIVITY HE SAYS A STEADY SUPPLY OF IPOS WILL CONTINUE TO COME FROM THE NORMAL STREAM OF GROWING US COMPANIES SEEKING PUBLIC FINANCING THE TREND AMONG US COMPANIES TOWARD DEBT REDUCTION AND THE URGE AMONG GOVERNMENTS AROUND THE WORLD TO PRIVATIZE STATEOWNED ENTERPRISES ONE OF THE LARGEST INITIAL PUBLIC OFFERINGS EVER IS ARGENTINA'S STATEOWNED OIL COMPANY YPF YPF PLANS TO OFFER 110 MILLION SHARES BETWEEN 17 AND 20 A SHARE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON AND MERRILL LYNCH THE STOCK IS SCHEDULED TO HIT THE NEW YORK STOCK EXCHANGE SOMETIME THIS WEEK BECAUSE THERE IS SUCH A FLOOD OF NEW STOCKS RAY HIRSCH OF IDS GROWTH SPECTRUM ADVISORS SAYS HE HAS BECOME MUCH MORE SELECTIVE IN THE LAST MONTH WE ARE REALLY LOOKING FOR STANDOUTS AS OPPOSED TO METOO CASINO RIVERBOAT DEALS MR HIRSCH SAYS ONE OF THE NEWER CASINO STOCKS STATION CASINOS HAS ALREADY DROPPED 25 IN A MONTH THE STOCK EASED 1/4 TO 15 ON FRIDAY THE LAS VEGAS CASINO COMPANY OFFERED 147 MILLION SHARES THROUGH LEAD UNDERWRITER SALOMON BROTHERS MATHSOFT ANOTHER IPO THAT HAS FALLEN FROM GLORY CLOSED AT 7 1/2 ON FRIDAY DOWN 42 FROM ITS FEBRUARY OFFERING PRICE OF 13 MATHSOFT WHICH WAS UNDERWRITTEN BY A SYNDICATE LED BY ALEX BROWN & SONS FELL SHORT OF ANALYSTS' EARNINGS EXPECTATIONS MR HIRSCH SAYS THE COMING HOT IPOS WILL BE IN THE AREA OF INTERACTIVE TECHNOLOGY AND TELECOMMUNICATIONS BUT HE WARNS THAT A LOT OF THESE MIGHT LOOK LIKE BIOTECHNOLOGY STOCKS WITH HIGH VALUATIONS AND SPECULATIVE EARNINGS CENCALL COMMUNICATIONS FILED TO OFFER FOUR MILLION SHARES BETWEEN 17 AND 19 THROUGH ITS LEAD MANAGER MERRILL LYNCH CENCALL OPERATES SPECIALIZED MOBILE RADIO WIRELESS COMMUNICATION SERVICES IN THE US BROADBAND TECHNOLOGIES IS DEVELOPING ELECTRONIC TELECOMMUNICATIONS SYSTEMS THAT ENABLE TELEPHONE COMPANIES TO PROVIDE SERVICES OVER FIBER OPTIC CABLES IN THEIR LOCAL LOOP THE LOCAL LOOP IS THE PART OF THE TELEPHONE NETWORK THAT CONNECTS RESIDENTIAL AND SMALL BUSINESS SUBSCRIBERS TO LOCAL SWITCHING OFFICES LAST YEAR THE COMPANY HAD A LOSS OF 158 A SHARE BROADBAND PLANS TO OFFER 28 MILLION SHARES PRICED AT 15 TO 17 A SHARE S&P'S MR NATALE SAYS THERE IS ALSO A FLOCK OF IPOS OF ENERGY AND BASIC MATERIAL COMPANIES HE RATES SHILOH INDUSTRIES WHICH IS OFFERING 34 MILLION SHARES BETWEEN 11 AND 13 A BUY SHILOH SUPPLIES BLANKS STAMPINGS AND PROCESSED STEEL TO THE AUTOMOTIVE AND OTHER INDUSTRIES THE OVERTHECOUNTER MARKET RALLIED LED BY TECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX CLIMBED 609 OR 088 TO 69481 ADVANCING ISSUES OUTNUMBERED DECLINERS 1476 TO 1104 ON TOTAL VOLUME OF 2194 MILLION SHARES DOWN FROM THURSDAY'S 2272 MILLION NOVELL JUMPED 1 3/8 TO 27 1/8 NOVELL SAID ITS BOARD APPROVED A BUYBACK OF UP TO 111 MILLION SHARES BUT APPLE COMPUTER DROPPED 1 3/4 TO 40 AFTER MERRILL LYNCH LOWERED ITS INTERMEDIATETERM INVESTMENT RATING TO BELOW AVERAGE FROM NEUTRAL AND ITS LONGTERM RECOMMENDATION TO NEUTRAL FROM ABOVE AVERAGE INITIAL PUBLIC STOCK OFFERINGS IN 1993 RANKED BY PERCENTAGE GAIN OR LOSS IN PRICE SINCE OFFERING DATE 9306280034 930628 INTERNATIONAL ARGENTINA OFFERS YPF SA TO LOCAL FOREIGN INVESTORS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUENOS AIRES FACING CONGRESSIONAL ELECTIONS IN OCTOBER ARGENTINA'S GOVERNMENT IS HOPING TO BURNISH ITS IMAGE WITH THIS WEEK'S FLOTATION OF PART OF OIL GIANT YPF SA IN THE FIRST PART OF WHAT WILL BE ONE OF LATIN AMERICA'S BIGGEST PRIVATIZATIONS THE GOVERNMENT WILL SELL ABOUT 31 OF YPF ON LOCAL AND INTERNATIONAL MARKETS IN THE SECOND STAGE THE GOVERNMENT IS PLANNING TO OFFER ANOTHER 26 OF THE COMPANY TO EMPLOYEES AND PENSIONERS SELLING OFF YPF ONE OF ARGENTINA'S BIGGEST COMPANIES IS A SIGNIFICANT STEP IN ARGENTINA'S CONVERSION TO FREEMARKET ECONOMICS UNDER PRESIDENT CARLOS MENEM THE SALE OF YPF SHARES IS THE HIGH POINT OF ARGENTINA'S PRIVATIZATION PROCESS ECONOMY MINISTER DOMINGO CAVALLO SAID RECENTLY THAT PROCESS HE ADDED HELPED ARGENTINA REACH AN AGREEMENT ON ITS FOREIGN DEBT YPF'S SALE BREAKS WITH LATIN AMERICAN NATIONS' LONGHELD VIEW THAT OIL IS A STRATEGIC RESERVE IN WHICH PRIVATE AND ESPECIALLY FOREIGN INVESTMENT ARE TABOO THUS SAYS ECONOMIST PEDRO LACOSTE WE'RE SHOWING WE'RE WILLING TO GO ONE STEP FURTHER THAN MEXICO AND CHILE WHICH PRECEDED ARGENTINA IN IMPLEMENTING FREEMARKET REFORMS BUT STOPPED SHORT OF PRIVATIZING THEIR PREMIER STATE ENTERPRISES MEXICAN OIL COMPANY PEMEX AND CHILE'S COPPER GIANT CODELCO THIS IS THE DEFINITIVE PRIVATIZATION OF ARGENTINA SAYS RICARDO ZINN A CONSULTANT WHO HELPED DESIGN YPF'S PREPRIVATIZATION RESTRUCTURING IF YOU CAN SELL YPF YOU CAN SELL ANYTHING BUT MANY HERE ALSO SAY THE SALE IS GUIDED MORE BY POLITICAL THAN MARKET CONSIDERATIONS THE GOVERNMENT PLANS TO USE THE PROCEEDS FROM THE SALE TO PAY OFF ITS DEBTS TO PENSIONERS AND MANY CHARGE IT IS RUSHING THE SALE TO STRENGTHEN THE GOVERNMENT'S HAND IN OCTOBER'S ELECTIONS AND THEREBY BOLSTER MR MENEM'S HOPES OF REFORMING THE CONSTITUTION TO ALLOW HIS REELECTION THE PRIVATIZATION CAPS A TWOYEAR PROCESS OF STREAMLINING YPF UNDER STATEAPPOINTED CHAIRMAN JOSE ESTENSSORO YPF CUT ITS STAFF TO 10600 FROM 51000 IN LATE 1990 SOLD OFF A HOST OF ASSETS LIKE ITS SHIPPING FLEET AND OIL RIGS AND CEDED PART OF ITS INTERESTS IN A NUMBER OF OIL FIELDS AND PIPELINES AFTER ACCUMULATING LOSSES OF ABOUT 6 BILLION THROUGH THE 1980S YPF RETURNED TO PROFITS EVEN AS ITS REVENUE SHRANK IN 1992 YPF POSTED PROFITS OF 259 MILLION ON SALES OF 39 BILLION EVEN AFTER THE DEREGULATION OF THE OIL MARKET AND YPF'S DOWNSIZING THE COMPANY RETAINS A DOMINANT STAKE IN ARGENTINA'S OIL INDUSTRY CONTROLLING 48 OF THE COUNTRY'S CRUDEOIL PRODUCTION AND 64 OF NATURALGAS PRODUCTION AS WELL AS 52 OF TOTAL REFINING CAPACITY AND 54 OF THE GAS STATIONS THE PRICE OF THE ISSUE IS EXPECTED TO BE ANNOUNCED TODAY IT IS EXPECTED TO BE BETWEEN 17 AND 20 PER SHARE THIS WOULD VALUE THE INITIAL OFFERING AT BETWEEN 18 BILLION AND 22 BILLION AND THE ENTIRE COMPANY AT BETWEEN 57 BILLION AND 67 BILLION ANALYSTS HAVEN'T RULED OUT THE POSSIBILITY THAT THE GOVERNMENT WILL INCREASE THE NUMBER OF SHARES IT OFFERS TODAY TO 35 OF THE COMPANY'S CAPITAL BECAUSE THE ISSUE APPEARS TO HAVE BEEN HEAVILY OVERSUBSCRIBED ESPECIALLY IN INTERNATIONAL MARKETS 9306280033 930628 TECHNOLOGY QUARTERLY LOSS SEEN BY CONVEX COMPUTER CORP BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS CONVEX COMPUTER CORP SQUEEZED BY A WEAK SUPERCOMPUTER MARKET AND NEW COMPETITION SAID IT EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER ON LOWER REVENUE THE NEWS IS THE LATEST IN A STRING OF RECENT EARNINGS DISAPPOINTMENTS FOR THE COMPANY WHICH ANALYSTS SAY IS IN A PRODUCT LULL THAT COULD LAST FOR THE REST OF THE YEAR CONVEX'S FIRSTQUARTER EARNINGS WERE DOWN 90 FROM A YEAR EARLIER AND FOURTHQUARTER NET INCOME WAS WELL BELOW ANALYSTS' ESTIMATES THE COMPANY IN PREDICTING ITS FIRST QUARTERLY LOSS SINCE 1991 SAID ORDERS SLOWED IN THE PERIOD BECAUSE OF WEAK ECONOMIES AROUND THE WORLD AND A SLOWDOWN IN FEDERAL GOVERNMENT AND DEFENSE CONTRACTS THE UNFORTUNATE CIRCUMSTANCE IS THAT WE AREN'T SEEING ORDERS CLOSE SAID J CAM MCMARTIN CHIEF FINANCIAL OFFICER THE MAGNITUDE OF THE LOSS WILL BE A FUNCTION OF HOW MUCH BUSINESS WE ARE SUCCESSFUL IN CLOSING IN THE NEXT FEW WORKING DAYS MR MCMARTIN SAID THE COMPANY'S REVENUE WILL FALL BELOW 55 MILLION IN THE PERIOD COMPARED WITH 59 MILLION IN THE FIRST QUARTER AND 575 MILLION IN THE 1992 SECOND QUARTER CONVEX STOCK FELL 125 CENTS A SHARE TO 4875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY THE PRICEPERFORMANCE OF CONVEX'S PRODUCT LINE IS LIKELY TO BE LESS AND LESS COMPETITIVE SAID BARRY F WILLMAN A SUPERCOMPUTER ANALYST AT SANFORD C BERNSTEIN IN NEW YORK CONVEX FACES SOME FAIRLY DIFFICULT HURDLES JEFF CANIN A SALOMON BROTHERS ANALYST IN NEW YORK SAID HE WOULD BE SURPRISED TO SEE THE COMPANY REPORT A PROFIT IN THE THIRD QUARTER THIS IS A STRUGGLE OF A TRANSITIONAL YEAR FOR THE COMPANY 9306280032 930628 THE OUTLOOK FED IS STILL ALERT TO INFLATION RISK BY LINDLEY H CLARK JR NEW YORK RECENT EXPERIENCE HAS TAUGHT THE FEDERAL RESERVE THAT INFLATION CAN ERUPT WHEN IT IS LEAST EXPECTED IN THE FIRST QUARTER OF THIS YEAR FOR INSTANCE THE INFLATIONADJUSTED GROSS DOMESTIC PRODUCT CRAWLED UPWARD AT AN ANNUAL RATE OF 07 MUCH SLOWER THAN THE 47 RATE OF LAST YEAR'S FOURTH QUARTER HARDLY ANYONE EXPECTED A SURGE OF INFLATION BUT THE CONSUMER PRICE INDEX SHOT UPWARD AT AN ANNUAL RATE OF 37 SHARPLY HIGHER THAN THE 32 INCREASE IN THE FINAL QUARTER OF 1992 LAST MONTH THE ECONOMY SEEMED TO BE PICKING UP MOMENTUM SO THE FED WAS ON ITS GUARD AGAINST INFLATION ONE SIGN OF STRENGTH WAS THE 209000 NONFARMPAYROLL INCREASE IN MAY FOLLOWING AN UPWARDREVISED 216000 INCREASE IN APRIL BUT CONSUMER PRICES ROSE AT A MUCH MORE COMFORTABLE RATE OF 17 ECONOMISTS GENERALLY ARE LOOKING FOR MODERATE RATES OF BOTH ECONOMIC GROWTH AND INFLATION THE REST OF THIS YEAR THE 50 ANALYSTS INTERVIEWED MONTHLY BY BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZ NEWSLETTER ON THE AVERAGE EXPECT THE GROSS DOMESTIC PRODUCT TO RISE AT AN ANNUAL RATE OF SLIGHTLY LESS THAN 3 IN THE FINAL THREE QUARTERS OF THIS YEAR WHILE THEY LOOK FOR CONSUMER PRICES TO CLIMB BY SLIGHTLY MORE THAN 3 AS IN THE EARLY PART OF THIS YEAR HOWEVER THINGS MAY NOT WORK AS SMOOTHLY AS EXPECTED DAVID M JONES CHIEF ECONOMIST OF THE BROKERAGE FIRM OF AUBREY G LANSTON & CO NOTES THAT THE RATE OF INDUSTRIAL CAPACITY UTILIZATION LAST MONTH REMAINED UNCHANGED AT 816 IT IS LIKELY HE SAYS THAT NEARTERM INCREASES WILL SOON PUSH THIS MEASURE INTO THE 8285 RANGE WHEN UTILIZATION CLIMBS THAT HIGH SUSTAINED PRICE INCREASES ARE USUALLY THE RESULT INDEED THE STEEL INDUSTRY WHICH HAS BEEN AGGRESSIVELY DOWNSIZING TO GET RID OF EXCESS CAPACITY NOW FINDS ITSELF WITH A UTILIZATION RATE OF A FAIRLY HIGH 86 BECAUSE OF THIS AND NEW IMPORT RESTRICTIONS STEEL PRICES ARE ON THE RISE CONTRIBUTING TO THE SIGNS OF INFLATIONARY PRESSURE AT THE SAME TIME THE SHARPLY WEAKENING US DOLLAR IS ADDING TO THE INFLATIONARY PRESSURES AS A RESULT OF THE DOLLAR'S DECLINE AGAINST THE JAPANESE YEN JAPANESE PRODUCERS HAVE SIGNIFICANTLY INCREASED THE PRICES OF AUTOS SOLD IN THE US LIKEWISE US PRODUCERS HAVE GENERALLY MIRRORED THE PRICE INCREASES IN JAPANESE CARS IN ADDITION THERE ARE MODERATING INFLUENCES ON PRICES BUSINESSES HAVE EXPERIENCED VERY SMALL INCREASES IN LABOR COSTS BECAUSE OF RESTRUCTURING AND RISING PRODUCTIVITY THAT HOWEVER POINTS UP THE UNPREDICTABILITY OF SUCH PRESSURES NONFARM PRODUCTIVITY FELL IN THE FIRST QUARTER OF 1993 THE FIRST DROP IN TWO YEARS IF THE DECLINE PROVES TO BE MORE THAN TEMPORARY IT COULD LEAD TO FURTHER UPWARD PRESSURE ON LABOR COSTS UP TO NOW WAGE PRESSURES HAVE REMAINED FAIRLY WEAK AS THE JOBLESS RATE HAS REMAINED STUBBORNLY HIGH IT IS UNCERTAIN WHEN AND HOW THE FEDERAL RESERVE MIGHT MOVE TO HEAD OFF NEW INFLATION PRESSURES MR JONES OF AUBREY LANSTON BELIEVES THE FED IS LIKELY TO SHIFT TOWARD RESTRAINT BEFORE THE END OF 1993 HE THINKS THE TIGHTENING MIGHT RESULT IN A HIGHER FEDERALFUNDS RATE THE FEE THAT BANKS CHARGE ON OVERNIGHT LOANS OF RESERVES TO ONE ANOTHER THE RATE NOW STANDS AT ITS THREEDECADE LOW OF 3 AT PRESENT THE FEDERAL RESERVE OPERATES SO AS TO STABILIZE THE FUNDS RATE ON VIRTUALLY A DAYTODAY BASIS TAKEN BY ITSELF THE FUNDS RATE WOULD SEEM TO INDICATE THAT FED POLICY IS QUITE EASY THE SAME IS TRUE FOR RECENT READINGS OF THE CHIEF MONETARY AGGREGATES M1 CONSISTING OF CURRENCY HELD BY THE NONBANK PUBLIC DEMAND DEPOSITS AND OTHER CHECKABLE DEPOSITS HAS RISEN AT AN ANNUAL RATE OF 101 SINCE EARLY JANUARY M2 WHICH CONSISTS MAINLY OF M1 PLUS VARIOUS SAVINGSTYPE DEPOSITS HAS GROWN AT A RATE OF ONLY 1 SINCE JANUARY BUT HAS RISEN AT A 41 RATE SINCE MARCH THE TWO AGGREGATES GREW VERY SLOWLY LATE LAST YEAR M2 IN FACT WENT THROUGH A DECLINE A FACT THAT MANY ANALYSTS BLAME FOR THE SHARP SLOWDOWN IN ECONOMIC GROWTH IN EARLY 1993 THE INTERPRETATION OF M2'S MOVEMENT LAST YEAR IS AN INDICATION THAT ANY FED MOVE THIS FALL IS LIKELY TO BE CONTROVERSIAL MANY MEMBERS OF CONGRESS CONTEND THAT THE FED ALREADY IS PURSUING TOO TIGHT A POLICY WHILE OTHERS ARGUE THAT THE CENTRAL BANK IS TOO EASY BUT PRESIDENT CLINTON'S COMMENTS LAST WEEK INDICATED THAT HE MIGHT NOT PARTICIPATE IN ANY SUCH CONTROVERSY AT A NEWS CONFERENCE MR CLINTON EXPRESSED CONFIDENCE THAT THERE IS NO INFLATION IN THE ECONOMY BUT HE WENT ON TO SAY THAT ANY DECISION ON TIGHTENING MONETARY POLICY IS A DECISION THE FED HAS TO MAKE SOME ANALYSTS ARGUE THAT ANY MOVE TO TIGHTEN POLICY WILL HAVE TO COME BY THIS FALL OR NOT AT ALL ONCE THE GOVERNMENT'S BUDGET BILL TAKES EFFECT BRINGING WITH IT HIGHER TAXES AND LOWER FEDERAL SPENDING THE IMPACT OF THESE MOVES IS LIKELY TO WEAKEN THE ECONOMY AT LEAST TEMPORARILY SO THE FEDERAL RESERVE THEN MIGHT BE FACED WITH THE TASK OF FIGHTING OFF A RECESSION NOT FIGHTING OFF INFLATION ED YARDENI OF CJ LAWRENCE THINKS THE FED IS LIKELY TO RAISE THE FUNDS RATE BY 50 BASIS POINTS EACH BASIS POINT IS ONEHUNDREDTH OF A PERCENTAGE POINT BY THE END OF THE SUMMER GIVEN ANY EXCUSE EVEN A WEAK ONE TO TIGHTEN WE BELIEVE HE SAYS THAT THE FED IS LOOKING FOR ANY EXCUSE TO LAUNCH A PREEMPTIVE STRIKE AGAINST INFLATION FED OFFICIALS WOULD LIKE TO SEND A CLEAR MESSAGE TO THE ECONOMY THAT REFLATION WON'T BE TOLERATED 9306280031 930628 HERSHEY STOCK FALLS 5 AFTER FORECAST OF LOWER EARNINGS FOR SECOND QUARTER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL HERSHEY PA HERSHEY FOODS CORP RELEASED A GLOOMY SECONDQUARTER EARNINGS FORECAST FRIDAY DRIVING ITS STOCK DOWN NEARLY 5 HERSHEY FELL 2375 A SHARE TO 47125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING TO EASE THE STING OF THE DISAPPOINTING EARNINGS PROJECTION HERSHEY ALSO UNVEILED A 200 MILLION SHAREREPURCHASE PROGRAM HERSHEY SAID IT EXPECTS EARNINGS FOR THE QUARTER ENDING JULY 4 TO BE 10 TO 15 CENTS A SHARE BELOW 1992'S SECONDQUARTER NET EARNINGS OF 39 CENTS A SHARE ANALYSTS HAD EXPECTED PROFIT TO BE FLAT THE POOR QUARTER MARKS A SLOWDOWN IN GROWTH AFTER MORE THAN A YEAR OF RAPID GAINS BY HERSHEY AN INCREASE IN MARKET SHARE DOES NOT GO ON FOREVER ASK INVESTORS IN BUDWEISER MARLBORO AND TAMBRANDS SAID LES PUGH AN ANALYST AT SALOMON BROTHERS MR PUGH WARNED THAT NESTLE SA IS ABOUT TO STEP UP THE COMPETITION IN THE U S WITH A FLURRY OF NEW PRODUCT OFFERINGS PERHAPS HERSHEY'S KISSES WILL MELT IN THE SHOWDOWN HE SAID ANALYSTS SAID HERSHEY'S SHIPMENTS SLOWED IN THE SECOND QUARTER AFTER HERSHEY PROMOTED ITS CANDIES TOO FEVERISHLY IN THE FIRST PART OF THE YEAR THEY WERE PROBABLY A LITTLE BIT TOO AGGRESSIVE IN DEALS TO THE TRADE IN THE FIRST QUARTER AND RETAILERS AREN'T EAGER TO REORDER SAID DAVID ADELMAN A DEAN WITTER REYNOLDS ANALYST THE SECONDQUARTER PROBLEMS ALSO HIGHLIGHT HERSHEY'S TROUBLESOME DEPENDENCE ON THE US CANDY MARKET HERSHEY HAS BEEN OUTBID BY PHILIP MORRIS COS IN THREE SEPARATE ATTEMPTS TO EXPAND IN EUROPE ANALYSTS SAID PHILIP MORRIS RECENTLY AGREED TO ACQUIRE CHOCOLATE MAKER TERRY'S GROUP FROM UNITED BISCUITS HOLDINGS PLC SINCE 1990 PHILIP MORRIS HAS SPENT MORE THAN 5 BILLION ACQUIRING JACOBS SUCHARD A SWISS CHOCOLATE AND COFFEE CONCERN AND FREIA MARABOU AS A SCANDINAVIAN CHOCOLATE AND SNACK MAKER BUT HERSHEY'S CANDY BUSINESS GETS 90 OF ITS SALES AND EVEN MORE OF ITS PROFIT FROM THE US THAT IS AN INCREASINGLY DANGEROUS PROPOSITION IN THE INCREDIBLY PRESSURIZED US FOOD INDUSTRY SAID MR PUGH HERSHEY SAID IT HASN'T GIVEN UP ON TRYING TO BUY ITS WAY INTO THE LUCRATIVE EUROPEAN CANDY BUSINESS WE REALIZE IT'S NOT AN EASY MARKET TO CRACK BUT WE ARE NOT OUT OF THE GAME BY ANY STRETCH OF THE IMAGINATION SAID A SPOKESMAN DESPITE THE PROBLEMS IN THE SECOND QUARTER HERSHEY SAID ORDERS FOR THE SECOND HALF OF THE YEAR WERE GOOD AND 1993 WOULD BE A RECORD YEAR HERSHEY IS GEARING UP FOR THE LAUNCH OF HUGS IN SEPTEMBER A BRAND EXTENSION OF ITS POPULAR KISSES FEATURING A WHITE CHOCOLATE COATING HUGS HAVE THE POTENTIAL TO BE A 100 MILLION PRODUCT FOR HERSHEY ANALYSTS SAID TO FURTHER PLACATE INVESTORS HERSHEY SAID ITS BOARD APPROVED A SHAREREPURCHASE PROGRAM TO ACQUIRE FROM TIME TO TIME AS MUCH AS 200 MILLION OF ITS COMMON STOCK THE COMPANY SAID THE BUYBACK IS EXPECTED TO BEGIN SHORTLY AFTER THE RELEASE OF SECONDQUARTER RESULTS SCHEDULED FOR JULY 21 WHILE MANY FOOD COMPANIES BOUGHT BACK SHARES AT A BRISK CLIP IN THE 1980S HERSHEY UNTIL NOW HAD BEEN RELUCTANT TO ENGAGE IN WHAT A HERSHEY SPOKESMAN REFERRED TO AS FINANCIAL ENGINEERING THE COMPANY'S ONLY OTHER BUYBACK WAS IN 1986 WHEN HERSHEY BOUGHT AND RETIRED 38 MILLION SHARES FROM HERSHEY TRUST ITS LARGEST SHAREHOLDER HERSHEY HAS 902 MILLION SHARES OUTSTANDING 9306280030 930628 TAIWAN MONEYSUPPLY GROWTH TAIPEI TAIWAN'S DAILY AVERAGE M2 MONEY SUPPLY ROSE 15 IN MAY TO 922 TRILLION TAIWANESE DOLLARS US35271 BILLION FROM THE YEAREARLIER PERIOD AND CLIMBED 06 FROM APRIL THE CENTRAL BANK REPORTED THE CENTRAL BANK OF CHINA NOTED THAT IT'S THE FIRST TIME IN TWO YEARS THAT THE M2 GROWTH RATE FELL INTO THE TARGETED RANGE OF 10 TO 15 SET BY THE BANK THE BANK ALSO SAID OVERALL DEPOSITS AT MONETARY INSTITUTIONS AMOUNTED TO T953 TRILLION IN MAY AN INCREASE OF 14 FROM A YEAR AGO AND OF 1 FROM APRIL 9306280029 930628 SADDAM'S FINGERPRINTS ON NY BOMBINGS BY LAURIE MYLROIE MILITARY RETALIATION FROM BAGHDAD WAS THE MAIN ADMINISTRATION CONCERN FOLLOWING SATURDAY'S STRIKE ON IRAQ YET US OFFICIALS SHOULD START THINKING SERIOUSLY ABOUT THE QUESTION OF RETALIATION THROUGH TERROR IT IS QUITE POSSIBLE FOR EXAMPLE THAT THERE WAS A CONNECTION BETWEEN SADDAM AND RECENT ATTEMPTS TO BLOW UP MANHATTAN IT IS QUITE POSSIBLE THAT NEW YORK'S TERROR IS SADDAM'S REVENGE SPECULATION ABOUT RESPONSIBILITY FOR LAST WEEK'S ABORTED BOMBING PLOT AND THE EARLIER WORLD TRADE CENTER BOMBING HAS FOCUSED ON IRAN SUDAN AND THE FUNDAMENTALIST SHEIK OMAR ABDELRAHMAN MUCH ENERGY HAS BEEN SPENT LINKING THE TERROR TO ISLAMIC FUNDAMENTALISM YET SADDAM A SECULAR TYRANT IS ALSO SUSPECT INFORMATION ALREADY IN THE PUBLIC DOMAIN ALLOWS US TO MAKE THIS CASE START WITH THE FACT THAT THE MOST IMPORTANT PERSON IN THE TRADE CENTER BOMBING IS AN IRAQI RAMZI AHMAD YUSUF KNOWN IN NEW YORK AS RASHID MR YUSUF HAS 11 ALIASES THE US PRESS HAS REPORTED THAT HE LEFT IRAQ IN EARLY 1992 TRANSITING JORDAN TO PAKISTAN HE ENTERED NEW YORK IN EARLY SEPTEMBER ON PAKISTAN AIRWAYS MR YUSUF TRAVELING ON HIS IRAQI PASSPORT PASSED THROUGH IMMIGRATION BY REQUESTING ASYLUM THE FBI CLAIMS THE PLOT BEGAN IN AUGUST WHILE MR YUSUF WAS ABROAD MR YUSUF SOON BECAME THE ROOMMATE OF MOHAMMED SALAMEH THE NAIVE PALESTINIAN WHO REPEATEDLY RETURNED TO THE VAN RENTAL AGENCY FOR HIS DEPOSIT PASSIONATE BUT NOT BRIGHT MR SALAMEH WOULD APPEAR A READY DUPE TO AN INTELLIGENCE OPERATIVE IN TRIAL DOCUMENTS AN IRAQIAMERICAN MUSAAB YASSIN HAS STATED THAT HE HAD KNOWN MR SALAMEH TWO YEARS MR YASSIN MOVED INTO MR SALAMEH'S APARTMENT IN SEPTEMBER 1992 AND MR SALAMEH MOVED OUT MR YASSIN'S YOUNGER BROTHER ABBOUD LIVED WITH HIM AN ARAB WHO KNOWS MUSAAB YASSIN TOLD ME THAT ABBOUD YASSIN LIKE MR YUSUF CAME TO THE US IN THE FALL OF 1992 SEEKING MEDICAL TREATMENT IN LATE NOVEMBER MR YUSUF ALLEGEDLY ORDERED CHEMICALS FOR THE BOMB AND MR SALAMEH RENTED A LOCKER TO STORE THEM THE PLOT WAS UNDERWAY IN EARLY FEBRUARY MR SALAMEH NOTIFIED HIS LANDLORD THAT HE AND MR YUSUF WOULD LEAVE AT MONTH'S END ON FEB 26 THE WORLD TRADE CENTER WAS BOMBED MESSRS SALAMEH AND YUSUF VACATED THEIR APARTMENT TWO DAYS LATER MR SALAMEH WAS ARRESTED MARCH 4 MUSAAB YASSIN RETURNED HOME THAT DAY TO FIND THE FBI SEARCHING HIS APARTMENT WHILE ABBOUD HAD BEEN TAKEN FOR QUESTIONING ABBOUD YASSIN TOLD THE FBI THAT HE TAUGHT MR SALAMEH TO DRIVE THE VAN THAT CARRIED THE BOMB THAT HE ACCOMPANIED MR SALAMEH TO AN APARTMENT LATER IDENTIFIED AS THE BOMB'S TESTING GROUND AND ABBOUD YASSIN'S INFORMATION HELPED LEAD THE FBI TO THE LOCKER WHERE THE CHEMICALS HAD BEEN STORED THE US PRESS REPORTS THAT ABBOUD YASSIN THEN RETURNED TO IRAQ AS DID MR YUSUF THE NEW YORK TIMES REPORTED THAT ARABS WHO KNEW MR SALAMEH AND THE SECOND PALESTINIAN ARRESTED NIDAL AYYAD SAID THAT THE TWO HAD CLOSE TIES WITH TWO IRAQIS ONE OF WHOM THEY SAY WAS NAMED RASHID BUT BOTH OF WHOM HAVE SINCE DISAPPEARED THIS INFORMATION ALTHOUGH SKETCHY INDICATES IRAQI ACTIVITY IF MR YUSUF THE KEY FIGURE HAD WORKED FOR IRAN TEHRAN WOULD NOT HAVE LET HIM RETURN TO IRAQ GIVEN THE TOTALITARIAN NATURE OF THE IRAQI REGIME EVEN ABBOUD YASSIN'S RETURN TO IRAQ IS SIGNIFICANT AN INNOCENT MAN WOULD ARGUABLY HAVE CHOSEN TO STAY IN THE US HE WOULD HAVE A BETTER CHANCE OF A FAIR HEARING IN A US COURT THAN BEFORE AN IRAQI INTELLIGENCE OFFICER IF ABBOUD YASSIN WAS INVOLVED IN THE BOMBING BUT WAS NOT ACTING UNDER BAGHDAD'S INSTRUCTION THEN IT WAS EVEN MORE IMPRUDENT FOR HIM TO RETURN TO IRAQ MR YUSUF AND ABBOUD YASSIN COULD HAVE GONE TO AFGHANISTAN WHERE THEY WOULD NOT HAVE EXPOSED THEMSELVES TO THE POTENTIALLY FATAL SUSPICIONS OF BAGHDAD'S INTELLIGENCE AGENCIES THAT TWO MEN INVOLVED CAME FROM IRAQ AND RETURNED THERE IS REASON ENOUGH TO CONSIDER AN IRAQI ROLE IN THE WORLD TRADE CENTER BOMBING WHAT OTHER POSSIBLE EVIDENCE IS THERE IT HAS BEEN REPORTED THAT THE BOMBING SUSPECTS RECEIVED MONEY FROM ABROAD UP TO 100000 FROM GERMANY IRAN AND ANOTHER MIDDLE EASTERN COUNTRY THAT COUNTRY IS PROBABLY JORDAN SHIELDED BY US AUTHORITIES WHO CONTINUE PROTECTING AMMAN FOR THE SAKE OF THE PEACE PROCESS WITHOUT KNOWING HOW MUCH MONEY CAME FROM EACH COUNTRY THOUGH IT IS HARD TO EXCLUDE IRAQ LAST BUT NOT LEAST IT IS WORTH NOTING THAT THE FEBRUARY BOMBING OCCURRED ON THE SECOND ANNIVERSARY OF KUWAIT'S LIBERATION WHAT ABOUT LAST WEEK'S ARRESTS THE FBI ARRESTED FIVE SUDANESE AND THREE OTHERS AS IT BROKE UP A SECOND BOMBING PLOT THE CONSPIRATORS' FIRST TARGET WAS UNITED NATIONS' HEADQUARTERS OTHER TARGETS WERE ADDED INCLUDING FBI HEADQUARTERS IN NEW YORK ADDITIONALLY FOUR ASSASSINATIONS WERE PLANNED INCLUDING THAT OF EGYPTIAN PRESIDENT HOSNI MUBARAK AND UN SECRETARY GENERAL BOUTROS BOUTROSGHALI LIKE THE TRADE CENTER BOMBING MUCH OF THIS OPERATION WAS AMATEURISH THE CONSPIRACY INSTIGATOR SIDDIQ IBRAHIM ALI HAD A PLAN TO GET A CAR INTO THE FBI BUILDING BUT IT WAS AMATEURISH HE PROPOSED SHOOTING THE BUILDING GUARDS PROFESSIONAL TERRORISTS DIVIDE THEIR ORGANIZATION INTO SMALL CELLS EACH DEVOTED TO SPECIFIC TASKS THESE PLANNERS USED A LARGE GROUP IN WHICH EVERY PARTICIPANT WAS KNOWN TO THE OTHERS SO THAT THE ENTIRE PLOT COULD QUICKLY UNRAVEL ONCE ONE MEMBER WAS CAUGHT YET LIKE THE TRADE CENTER BOMBING THIS WAS AUDACIOUS HAD IT SUCCEEDED THOUSANDS COULD HAVE DIED IT'S IMPORTANT TO NOTE THAT BOTH THE TRADE CENTER BOMBING AND THE LATER PLOT REPRESENT SOMETHING NEW AT LEAST IN THE WEST SADDAM HOWEVER COMMITS THAT KIND OF CARNAGE ON A DAILY BASIS TWO OF THE NATIONS THOUGHT TO BE BEHIND THE SECOND PLOT ARE NOT IDEAL SUSPECTS KHARTOUM IS SUSPECTED BECAUSE SUDANESE PLAYED A BIG ROLE IN THE PLOT WITH IRAN SUDAN HAS BEEN INVOLVED IN A VIOLENT CAMPAIGN TO OVERTHROW SECULAR GOVERNMENTS IN NORTH AFRICA INCLUDING MR BOUTROSGHALI'S OWN GOVERNMENT IN CAIRO BUT KHARTOUM HAS NOT SPONSORED TERRORISM AGAINST US TARGETS THAT IT SHOULD SUDDENLY SUPPORT POTENTIALLY THE MOST DEVASTATING ANTIAMERICAN ATTACK EVER MAKES LITTLE SENSE A SEPARATE QUESTION THOUGH IS WHETHER SUDANESE DIPLOMATS COULD BE BOUGHT THIS IS POSSIBLE SINCE KHARTOUM IS BROKE AND MONTHS BEHIND IN PAYING ITS DIPLOMATS IRANIAN SPONSORSHIP OF THE PLOT IS ALSO UNLIKELY IRAN HAS NO BIG QUARREL WITH THE UN IT BENEFITS FROM THE UN'S DISARMAMENT OF IRAQ THE UN IS NOT THE OBVIOUS TARGET FOR MUSLIM EXTREMISTS THEIR QUARREL IS WITH THE US THEY COULD HAVE EASILY CHOSEN AN AMERICAN TARGET EXPLAINING WHY FUNDAMENTALISTS WOULD BOMB THE UN IS POSSIBLE BUT THE EXPLANATION IS STRAINED THAT THEY SEE THE UN AS A US SURROGATE THAT THEIR VIOLENCE IS CAUSED BY ANGER AT MANY ISSUES INVOLVING THE UN INCLUDING BOSNIA SOMALIA AND THE PALESTINIANS THE TRADE CENTER SUSPECTS ISSUED A SET OF DEMANDS THEY MENTIONED NEITHER THE UN NOR MOST OF THOSE ISSUES THEY DEMANDED THAT THE US STOP AIDING ISRAEL AND STOP INTERFERING IN THE INTERNAL AFFAIRS OF MIDDLE EASTERN COUNTRIES SADDAM BY CONTRAST HAS EVERY REASON TO ATTACK THE UN SADDAM ALSO HATES EGYPT'S MUBARAK AND WANTS HIM DEAD NO LESS THAN HE WANTED GEORGE BUSH DEAD BAGHDAD RADIO THREATENED MR BUSH PERSONALLY DURING THE GULF WAR AND MUBARAK AS WELL DOES HE MUBARAK THINK THAT THE CRIME HE COMMITTED AGAINST THE PEOPLE OF IRAQ WILL GO UNPUNISHED PREPARE YOURSELF FOR IT AND SHIVER AT THE THOUGHT ATTENTION HAS FOCUSED ON THE IRANIANSUDANESE RELATIONSHIP BUT BAGHDAD COULD AS EASILY RECRUIT SUDANESE AS TEHRAN FOR SADDAM IRAQI SPONSORSHIP WOULD BE VENGEANCE WITH A TWIST BAGHDAD WANTS WASHINGTON TO BLAME IRAN FOR THE TERROR STRIKING AMERICA'S SHORES IF A BOMBING SUCCEEDS SADDAM WINS IF IT DOESN'T AND FUNDAMENTALISTS ARE CAUGHT THAT TOO IS FINE BECAUSE IT PROMOTES A HYSTERIA ABOUT ISLAMIC FUNDAMENTALISM AND IRAN WHICH SADDAM CALCULATES WOULD EVENTUALLY BENEFIT IRAQ IF SADDAM IS BEHIND THE ATTACKS MORE WILL SURELY FOLLOW THE FOCUS OF THE NEW YORK INVESTIGATIONS SHOULD SHIFT TO THE QUESTION OF STATE SPONSORSHIP IF CONSIDERABLE EVIDENCE POINTS TO SADDAM THEN PRESIDENT CLINTON MUST FULFILL HIS SATURDAY PLEDGE WE WILL COMBAT TERRORISM WE WILL DETER AGGRESSION WE WILL PROTECT OUR PEOPLE MS MYLROIE COAUTHOR OF SADDAM HUSSEIN AND THE CRISIS IN THE GULF RANDOM HOUSE IS A FELLOW AT THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY SHE RECENTLY COMPLETED A PAPER IRAQ OPTIONS FOR US POLICY 9306280028 930628 BUSINESS BRIEFS WESTWOOD ONE INC SOLD ITS NEW YORK COUNTRY AND WESTERN RADIO STATION WYNYFM TO BROADCASTING PARTNERS INC NEW YORK FOR 50 MILLION PLUS WORKING CAPITAL AMERICAN BUILDING MAINTENANCE INDUSTRIES INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE OPERATIONS OF SYSTEM PARKING FOR 20 MILLION SCANA CORP A UTILITY HOLDING COMPANY MADE A PUBLIC OFFERING ON THURSDAY OF 60 MILLION OF ITS MEDIUMTERM NOTES USS/KOBE STEEL CO FINALIZED ITS 64 MILLION PURCHASE OF A CONTINUOUS CASTER FROM CLOSELY HELD SHARON STEEL CORP LIBERTY CORP SIGNED A LETTER OF INTENT TO BUY STATE NATIONAL CAPITAL CORP BATON ROUGE LA A CLOSELY HELD INSURANCE COMPANY FOR 275 MILLION ARMCO INC SAID ITS BOARD CONDITIONALLY APPROVED A 100 MILLION PLAN TO BUILD A FLATROLLED STEEL MINIMILL AT ITS MANSFIELD OHIO FACILITY RAYTHEON CO RECEIVED A FIVEYEAR 669 MILLION NAVY CONTRACT FOR ENGINEERING WORK TO SUPPORT THE AEGIS SHIP DEFENSE SYSTEM INTERNATIONAL BUSINESS MACHINES CORP SAID ONE OF ITS UNITS IBM FEDERAL SYSTEMS CO OWEGO NY WAS NAMED PRIME CONTRACTOR FOR A 10YEAR CONTRACT DESIGNED TO MODERNIZE THE ARMY'S INSTALLATION INFORMATION MANAGEMENT SYSTEMS 9306280027 930628 BUSINESS BRIEF ITT CORP DEAL TO BUY HOTELCASINO MAY BE ANNOUNCED SOON ITT CORP'S ITT SHERATON HOTEL SUBSIDIARY IS IN NEGOTIATIONS WITH BILLIONAIRE INVESTOR KIRK KERKORIAN TO BUY THE DESERT INN HOTELCASINO IN LAS VEGAS AND A TRANSACTION COULD BE ANNOUNCED AS EARLY AS THIS WEEK PEOPLE CLOSE TO THE TALKS SAID ITT IS INTENT ON ENTERING THE CASINO BUSINESS AND HAS BEEN STUDYING THE LAS VEGAS MARKET FOR SOME TIME ITT FIRST CONTACTED MR KERKORIAN LAST YEAR TALKS IN RECENT WEEKS HAVE BROKEN OFF AND RESUMED A FEW TIMES AS THEY INTENSIFIED THE DESERT INN BUILT BY HOWARD HUGHES'S SUMMA CORP IS A BOUTIQUE PROPERTY ALONG THE LAS VEGAS STRIP THAT CATERS TO HIGH ROLLERS THE SITE INCLUDES AN 821ROOM HOTEL 18HOLE GOLF COURSE AND A 34ACRE PARCEL OF LAND AND IS CONSIDERED ONE OF THE MOST PROMISING DEVELOPMENT SITES IN THE CITY SPOKESMEN FOR MR KERKORIAN AND NEW YORKBASED ITT DECLINED TO COMMENT 9306280026 930628 ENTERPRISE FTC INQUIRY INTO SUBWAY SANDWICH IS WIDENED WITH SURVEY OF FRANCHISEES BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION HAS LAUNCHED A BROAD INQUIRY INTO THE MARKETING PRACTICES OF SUBWAY SANDWICH SHOPS ONE OF THE NATION'S LARGEST AND FASTEST GROWING FRANCHISE SYSTEMS AT LEAST SINCE LAST FALL THE AGENCY HAS BEEN CONDUCTING AN INFORMAL INQUIRY INTO THE FRANCHISER OF NEARLY 7900 SUBWAY SANDWICH AND SALAD OUTLETS BUT IN THE PAST MONTH IT HAS QUIETLY INTENSIFIED ITS EFFORT BY CIRCULATING A CONFIDENTIAL SURVEY SEEKING BROAD COMMENT FROM CURRENT AND FORMER FRANCHISEES ON THEIR DEALINGS WITH THE SUBWAY FRANCHISER ACCORDING TO FRANCHISEES AND PEOPLE CLOSE TO THE AGENCY AS PREVIOUSLY REPORTED DISSATISFACTION AMONG SUBWAY FRANCHISEES HAS BEEN WIDESPREAD AMONG OTHER CHARGES FRANCHISEES ACCUSE SUBWAY REPRESENTATIVES OF MAKING UNREALIZABLE FINANCIAL PROJECTIONS IN THEIR SALES PITCHES THEY ALSO SAY THE MILFORD CONN FRANCHISER KNOWN AS DOCTOR'S ASSOCIATES INC SOMETIMES PLACES UNITS SO CLOSE TOGETHER THAT THEY CANNIBALIZE EACH OTHER'S SALES NUMEROUS FRANCHISEES SAY THEY HAVE LOST THOUSANDS OF DOLLARS ON THEIR SUBWAY INVESTMENT DISPUTES OVER FRANCHISER DISCLOSURES TO PROSPECTIVE FRANCHISEES HAS BEEN A RECURRING PROBLEM IN THE FRANCHISE INDUSTRY ACCORDING TO A COPY OF THE CONFIDENTIAL SURVEY OBTAINED BY THE WALL STREET JOURNAL THE AGENCY IS SCRUTINIZING BUSINESS PROJECTIONS MADE BY SUBWAY TO FRANCHISEES BEFORE THEY PURCHASED THEIR OUTLETS IT IS SEEKING COMMENT ON ANY SUBWAY PREDICTIONS INVOLVING AN OUTLET'S EARNINGS POTENTIAL AND CASH FLOWS PLUS INVESTMENT NEEDED TO COVER STARTUP COSTS WORKING CAPITAL AND EQUIPMENT TWO SUBWAY FRANCHISEES WHO INSISTED ON ANONYMITY SAID THEY UNDERSTOOD FROM AN FTC LAWYER THAT THE AGENCY SENT THE QUESTIONNAIRE TO 400 RANDOMLY SELECTED SUBWAY FRANCHISE OWNERS A COVER LETTER NOTES THAT THE AGENCY IS SOLICITING COMMENT TO ENSURE COMPLIANCE WITH REGULATIONS AIMED AT ENSURING THAT PROSPECTIVE FRANCHISEES GET ADEQUATE INFORMATION ABOUT A FRANCHISER EILEEN HARRINGTON ASSOCIATE DIRECTOR OF THE AGENCY'S BUREAU OF CONSUMER PROTECTION WOULDN'T CONFIRM THE INQUIRY AND SAID THE AGENCY DOESN'T COMMENT ON CONFIDENTIAL INQUIRIES BUT THE FRANCHISER ACKNOWLEDGED THE SURVEY IN A STATEMENT FRIDAY AS WE ALL KNOW THE FTC OCCASIONALLY SURVEYS THE FRANCHISE INDUSTRY SINCE MARCH WE HAVE BEEN WORKING WITH THEM ON A SURVEY OF SUBWAY WE BELIEVE THAT FTC SURVEYS ARE POSITIVE BECAUSE THEY SAMPLE AN ENTIRE FRANCHISE SYSTEM RATHER THAN FOCUSING IN ON INDIVIDUAL SUCCESS STORIES OR ISOLATED FAILURES WE ARE LOOKING FORWARD TO THE RESULTS OF THE SURVEY FREDERICK DELUCA COFOUNDER OF THE SUBWAY CHAIN INDICATED LAST YEAR THAT SUBSTANTIAL NUMBERS OF SUBWAYS WERE SCARCELY PROFITABLE MR DELUCA ALSO CONFIRMED LAST YEAR THAT ABOUT 40 OF THE 2300 SUBWAY SHOPS LISTED AS OPEN OR PREPARING TO OPEN AT THE END OF 1987 EITHER CHANGED HANDS RELOCATED CLOSED DOWN OR NEVER OPENED BUT HE SAID HE BELIEVED THAT MOST FRANCHISEES WERE SATISFIED AND THAT NO FRANCHISING SYSTEM COULD GROW AS LARGE AS SUBWAY WITHOUT HAVING A FUNDAMENTALLY GOOD BUSINESS 9306280025 930628 PEPPERAND SALT BUSINESS NEWS NOTE 80 OF OWNERS CAN'T PROGRAM THEIR VCRS SAYS TECHNOLOGY EXEC COMPRISE ONLY 20 PERCENT TO CHASE A BALL OF YARN 9306280024 930628 ECONOMY JAPANESE FIRMS ACT TO LIFT US PRICES CITING DOLLAR'S WEAKNESS AGAINST YEN BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL JAPANESE COMPANIES ARE BOOSTING US PRICES ON A BROAD ARRAY OF PRODUCTS REFLECTING THE DOLLAR'S WEAKNESS AGAINST THE YEN AND THE SLUGGISH JAPANESE ECONOMY PRICES ON JAPANESE AUTOS STEEL AND SEMICONDUCTORS HAVE RISEN IN RECENT MONTHS AND INCREASES ARE EXPECTED SOON FOR CONSUMER ELECTRONICS AND CONSTRUCTION EQUIPMENT ALTHOUGH THE TREND COULD PUT PRESSURE ON THE US INFLATION RATE THE PRICE INCREASES EVENTUALLY COULD HELP NARROW THE US TRADE GAP WITH JAPAN WHICH REACHED A FIVEYEAR HIGH IN MARCH EVERYBODY IS TRYING TO PREPARE DEALERS AND THE PUBLIC FOR PRICE INCREASES SAYS DAVID LACHENBRUCH EDITORIAL DIRECTOR OF TELEVISION DIGEST A CONSUMERELECTRONICS TRADE PUBLICATION FOR MONTHS HE SAID THE US OPERATIONS OF JAPANESE COMPANIES AND THEIR COMPETITORS HAD BEEN WAITING TO SEE WHICH COMPANIES WOULD MAKE A MOVE AS THE DOLLAR KEPT SLIDING A WEEK AGO THE DOLLAR WAS REBOUNDING AGAINST THE YEN WHICH HAD BEEN HURT BY THE POLITICAL TURMOIL IN JAPAN BY THE END OF LAST WEEK HOWEVER THE YEN HAD BEGUN TO REASSERT ITSELF AS TRADERS CAME TO GRIPS WITH THE NEW JAPANESE POLITICAL LANDSCAPE ON FRIDAY THE DOLLAR FELL ABOUT 2 1/2 YEN STANDING AT 10620 YEN IN LATE NEW YORK TRADING FRIDAY'S LEVEL LEFT THE DOLLAR NEAR ITS RECORD LOW OF 10510 YEN SET EARLIER THIS MONTH AT THAT LEVEL THE DOLLAR HAD DECLINED 16 SINCE CLINTON ADMINISTRATION OFFICIALS BEGAN TALKING THE CURRENCY DOWN IN FEBRUARY IN AN EFFORT TO MAKE JAPANESE GOODS MORE EXPENSIVE IN DOLLAR TERMS AND THEREBY REDUCE THE US TRADE DEFICIT US COMPANIES THAT HAVE PRODUCTS MANUFACTURED IN JAPAN FOR EXPORT TO THE US ARE UNDER THE SAME PRESSURE TO RAISE PRICES MOST OF THE CONSTRUCTION EQUIPMENT SOLD IN THE US IS MANUFACTURED IN JAPAN FOR INSTANCE SO FAR THE PRICE INCREASES IN THAT FIELD HAVE BEEN SLIM BUT I WOULD EXPECT THE INDUSTRY TO SEE FURTHER PRICE ADJUSTMENTS AS A RESULT OF THE YENDOLLAR RELATIONSHIP SAID JAMES MEZERA A SPOKESMAN FOR KOMATSU DRESSER CO A JOINT US VENTURE OF THE TWO EQUIPMENT MANUFACTURERS THAT'S BECAUSE EQUIPMENT PROBABLY WILL BE PRICED AT HIGHER LEVELS WHEN SHIPPED LATER THIS YEAR REFLECTING THE YENBASED COST OF PRODUCING IT NOW THE LAST TIME THE YEN APPRECIATED SO QUICKLY AGAINST THE DOLLAR WAS IN THE MID1980S WHEN THE YEN WAS AT 260 PER DOLLAR MORE THAN 60 HIGHER THAN TODAY BUT JAPANESE BALANCE SHEETS WERE MUCH STRONGER THEN ALLOWING COMPANIES TO RESIST RAISING PRICES FOR MUCH LONGER WE'RE SEEING IT HAPPEN SOONER THIS TIME SAYS MICHAEL ENGLUND CHIEF ECONOMIST OF MMS INTERNATIONAL A CURRENCY AND BONDRESEARCH FIRM ALL THE PLANNING FOR THIS YEAR HAD PREDICATED AN EXCHANGE RATE OF 115 TO 117 ON THE DOLLAR MANUFACTURERS ARE ALREADY AT THE POINT WHERE THEY ARE LOSING MONEY DAVID WYSS RESEARCH DIRECTOR OF DRI MCGRAWHILL SAYS INDEED THERE HAS BEEN A FLURRY OF ACTIVITY AMONG PRODUCERS OF STEREOS HANDHELD CAMCORDERS VIDEOCASSETTE RECORDERS AND SOME OTHER CONSUMER ELECTRONIC GOODS SINCE THE CONSUMER ELECTRONICS SHOW IN CHICAGO THIS MONTH PANASONIC CO BELIEVED TO HAVE ABOUT 3 BILLION IN ANNUAL US SALES SAID RECENTLY THAT IT PLANNED SELECTIVE PRICE INCREASES EFFECTIVE SEPT 1 THE RAPID AND RECENT APPRECIATION OF THE YEN HAS PUT ADDED PRESSURE ON CONSUMERELECTRONICS FIRMS WHICH PURCHASE FROM OVERSEAS FACTORIES SAYS TED INOUE PRESIDENT OF PANASONIC A SUBSIDIARY OF MATSUSHITA ELECTRONICS CORP OF AMERICA A SPOKESMAN FOR SONY CORP'S US ARM SAID IT PLANS PRICE INCREASES RANGING FROM THOSE IN THE SINGLE DIGITS TO THOSE IN THE LOW DOUBLE DIGITS ON SOME MODELS BEGINNING IN THE LATE SUMMER IN ADDITION TO THE YEN'S STRENGTH HE SAYS THE ADDITION OF NEW FEATURES IS ANOTHER REASON FOR THE INCREASES COMPANIES IN THE CAMCORDER BUSINESS WITH ANNUAL SALES OF 2 BILLION ALSO EXPECT PRICES TO RISE A SPOKESMAN FOR THOMSON CONSUMER ELECTRONICS INC THE US SUBSIDIARY OF PARISBASED THOMSON SA SAYS ITS JAPANESE PRODUCERS OF CAMCORDERS ARE STARTING TO TALK OF INCREASED PRICES FOR GOODS THAT WILL BE SOLD RETAIL LATER THIS YEAR HE ADDS IF THAT HAPPENS WE'LL HAVE TO PASS IT ALONG IRONICALLY EVEN THOUGH MANY COLORTELEVISION SETS SOLD IN THE US COME FROM JAPAN THE APPRECIATION OF THE YEN ISN'T DRIVING UP PRICES FOR THE INDUSTRY LEADERS THE SPOKESMAN FOR THOMSON WHICH OWNS TOPSELLING RCA SAYS JAPANESE PRODUCERS AREN'T UNDER STRONG PRESSURE TO RAISE PRICES BECAUSE THEY HAVE THE SETS MADE IN COUNTRIES WHERE LABOR IS CHEAPER EVEN SO TELEVISION PRICES COULD STABILIZE AFTER SEVERAL YEARS OF DECLINE SOME US ARMS OF JAPANESE TELEVISION MAKERS INCLUDING SANYO FISHER USA CORP SAY THEY ARE UNDER SOME PRICING PRESSURE BECAUSE OF OTHER EXPENSES INCLUDING PARTS THAT OFTEN COME FROM JAPAN JAPANESE COMPANIES WON'T HAVE TO MAKE UP ALL OF THE CURRENCY LOSS BECAUSE THEIR OWN IMPORTED RAW MATERIALS ARE ABOUT 9 CHEAPER DUE TO THE CURRENCY CHANGE SAYS NEAL SOSS CHIEF ECONOMIST FOR FIRST BOSTON CORP IN ANY EVENT IT CAN TAKE AS LONG AS A YEAR OR MORE BEFORE HIGHER PRICES OF IMPORTED GOODS CHANGE BUYING PATTERNS SUFFICIENTLY TO RESULT IN WEAKENED DEMAND AND AN IMPROVING TRADE PICTURE THAT'S ONE REASON WHY ALMOST HALF OF THE 51 ECONOMISTS POLLED BY THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER EARLY THIS MONTH CITED THE DECLINING VALUE OF THE DOLLAR AS A CAUSE FOR INFLATION CONCERN IN 1994 AMONG AUTOS FORD MOTOR CO AND CHRYSLER CORP FOLLOWED THE LEAD OF MOST JAPANESE AUTOMAKERS IN RAISING PRICES IN RECENT MONTHS ALTHOUGH THE BOOSTS ON THE 1993 MODELS HAVE BEEN SMALL A SPOKESWOMAN FOR FORD SAID THE AVERAGE INCREASE FOR ITS CARS AND TRUCKS THIS MODEL YEAR HAS BEEN 22 JAPANESE COMPETITORS HAVE INCREASED PRICES MORE THAN 4 THE JAPANESE CAR COMPANIES CITED THE YEN APPRECIATION AS THE REASON FOR THEIR GENERALLY HIGHER MOVES GENERAL MOTORS CORP HOWEVER ISSUED A NEWS RELEASE SEVERAL WEEKS AGO SAYING IT DIDN'T PLAN TO RAISE PRICES ON CURRENT MODELS 9306280023 930628 BUSINESS BRIEF BANKAMERICA CORP BANK TO COMPLETE ASSET SALE TO A LIMITED PARTNERSHIP BANKAMERICA CORP PLANS TO COMPLETE ITS SALE OF REAL ESTATE ASSETS THIS WEEK TO A MORGAN STANLEY GROUP INC PARTNERSHIP MORGAN STANLEY REAL ESTATE FUND LP WILL BUY ASSETS WITH A FACE VALUE OF 136 BILLION FOR 450 MILLION OR 33 CENTS ON THE DOLLAR THE PARTNERSHIP PLANS TO REMORTGAGE THE ASSETS UNDER TERMS SET LAST WEEK FOR AN IMMEDIATE 25 MILLION PROFIT WHICH IS EXPECTED TO INCREASE SHARPLY AS THE ASSETS ARE LIQUIDATED THE ASSETS ARE TROUBLED LOANS AND PROPERTIES ACQUIRED IN BANKAMERICA'S APRIL 1992 MERGER WITH SECURITY PACIFIC CORP INITIALLY THE SAN FRANCISCO BANK PLANNED TO SPIN OFF UP TO 4 BILLION OF SUCH ASSETS INTO A SOCALLED BAD BANK PROBLEMS IN ATTRACTING INVESTORS CAUSED BANKAMERICA TO SCALE DOWN THE SALE TO 17 BILLION IN ASSETS ASSET DISPOSITIONS AND PAYDOWNS SINCE THE MORGAN PLAN WAS ANNOUNCED FURTHER REDUCED THE SALE A PERSON CLOSE TO THE DEAL SAID BANKAMERICA'S NET PROCEEDS FROM THE BAD ASSETS WOULD INCLUDE 250 MILLION FROM THE INTERIM LIQUIDATIONS AND 300 MILLION IN TAX BENEFITS 9306280022 930628 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 315 30 TO 59 DAYS 316 60 TO 119 DAYS 322 120 TO 149 DAYS 324 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 320 30 DAYS 323 60 DAYS 325 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 269 TWO MONTHS 277 THREE MONTHS 289 SIX MONTHS 315 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 309 30 DAYS 311 60 DAYS 314 90 DAYS 319 120 DAYS 324 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 21 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 698 60 DAYS 705 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 704 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306280021 930628 POLITICS & POLICY PESTICIDE USE WOULD BE CUT UNDER US PLAN BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION ANNOUNCED A COMMITMENT TO CUT PESTICIDE USE IN THE US AND A NATIONAL ACADEMY OF SCIENCES REPORT CALLED FOR IMPROVED DATA AND REGULATORY PROCEDURES TO PROTECT CHILDREN BETTER FROM CHEMICALS IN A JOINT STATEMENT AGRICULTURE SECRETARY MIKE ESPY ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER AND FOOD AND DRUG ADMINISTRATION COMMISSIONER DAVID KESSLER UNDERSCORED THEIR CONFIDENCE IN THE SAFETY OF THE FOOD SUPPLY BUT THEY SAID THEY WOULD DEVELOP A PACKAGE OF PROPOSALS AIMED AT REDUCING THE USE OF PESTICIDES AND PROMOTING AGRICULTURAL PRACTICES THAT RELY ON ALTERNATIVE PESTCONTROL METHODS WE ARE COMMITTED TO THE GOALS OF REDUCING RISKS ASSOCIATED WITH PESTICIDES FOR ALL AMERICANS AND ESPECIALLY OF ENSURING APPROPRIATE PROTECTION FOR CHILDREN SAID THE STATEMENT WHICH FOLLOWED SEVERAL MONTHS OF WORK BY THE AGENCIES THE ANNOUNCEMENT'S TIMING APPARENTLY REFLECTED AN EFFORT TO GET A JUMP ON SEVERAL STUDIES THE ACADEMY'S REPORT WAS RELEASED YESTERDAY AND A STUDY MADE AVAILABLE FRIDAY BY THE ENVIRONMENTAL WORKING GROUP A RESEARCH AND ADVOCACY ORGANIZATION FOUND THAT DURING THEIR FIRST FEW YEARS OF LIFE CHILDREN IN THE US ARE EXPOSED TO A DISPROPORTIONATELY HIGH SHARE OF THEIR ACCEPTABLE LIFETIME DOSES OF SOME PESTICIDES IN FOOD IN ADDITION INFORMATION TO BE RELEASED SHORTLY UNDER THE AGRICULTURE DEPARTMENT'S PESTICIDE DATA PROGRAM IS EXPECTED TO SHOW THAT LEVELS OF DETECTABLE RESIDUES ON FRUITS AND VEGETABLES INCREASED SIGNIFICANTLY IN 1992 FROM 1991 THOUGH THEY GENERALLY REMAINED WITHIN ACCEPTABLE LEVELS THE FLURRY OF STUDIES IS LIKELY TO INCREASE PRESSURE ON CONGRESS TO REVISE PESTICIDE REGULATION SEVERAL ENVIRONMENTAL AND INDUSTRY GROUPS EXPRESSED SUPPORT FOR THE ADMINISTRATION'S STATEMENT AND THE ACADEMY'S CALL FOR ADDED DATA IN SEPARATE INTERVIEWS DR KESSLER CALLED THE REPORT A WATERSHED IN THE HISTORY OF PESTICIDE USE AND MS BROWNER SAID THE EPA WILL BE LOOKING FOR OPPORTUNITIES TO GET SAFER PESTICIDES APPROVED AND DANGEROUS ONES REMOVED FASTER SHE SAID THE AGENCY ALSO WILL SEEK TO IMPROVE ITS SYSTEM OF PESTICIDE REGISTRATION A SPOKESMAN FOR AGRICULTURE SECRETARY ESPY SAID THE DEPARTMENT PLANS TO CHANGE THE DIRECTION OF RESEARCH TO HELP PRODUCERS DEVELOP NEW WAYS TO CUT THE USE OF HIGHRISK PESTICIDES THOUGH HE SAID THE AGENCY WASN'T READY TO DISCUSS SPECIFIC FUNDING LEVELS THE ACADEMY REPORT WHICH WAS REQUIRED BY CONGRESS SAID THAT FEW DATA ARE AVAILABLE FOR ESTIMATING THE EXPOSURE OF INFANTS AND CHILDREN TO PESTICIDES AND IT URGED CHILDREN TO CONTINUE EATING A WIDE VARIETY OF FRUITS AND VEGETABLES BUT IT CITED A POTENTIAL CONCERN THAT SOME CHILDREN MAY BE GETTING UNSAFE AMOUNTS OF THE CHEMICALS IN THEIR DIETS WE CONDUCTED A DETAILED REVIEW OF THE REGULATORY MECHANISMS SAID DR PHILIP LANDRIGAN CHAIRMAN OF THE COMMITTEE THAT PRODUCED THE REPORT AND WE FOUND SOME SERIOUS DEFICIENCIES THAT NEED TO BE CORRECTED THE COMMITTEE URGED THE GOVERNMENT TO DEVELOP PESTICIDE TOXICITY TESTS THAT BETTER ACCOUNT FOR THE POTENTIAL VULNERABILITY OF INFANTS AND CHILDREN IT ALSO CALLED FOR BETTER DATA ON CHILDREN'S CONSUMPTION PATTERNS AND SAID THAT ESTIMATES OF EXPOSURE TO PESTICIDE RESIDUES SHOULD TAKE INTO ACCOUNT CHILDREN'S NONDIETARY INTAKE OF PESTICIDES SIGNIFICANTLY THE PANEL CALLED ON THE EPA TO GIVE GREATER WEIGHT TO HEALTH CONSIDERATIONS THAN TO AGRICULTURAL PRACTICES WHEN ESTABLISHING ALLOWABLE PESTICIDE LEVELS THE ENVIRONMENTAL WORKING GROUP STUDY AMONG OTHER POINTS FOUND THAT INFANTS AND CHILDREN AS WELL AS ADULTS ROUTINELY ENCOUNTER RESIDUES FROM MORE THAN ONE PESTICIDE ON INDIVIDUAL FOOD ITEMS GOVERNMENT RISKASSESSMENT PROCEDURES ASSUME THAT PEOPLE ARE EXPOSED TO PESTICIDES ONE AT A TIME LIKE THE NAS COMMITTEE THE ENVIRONMENTAL GROUP URGED PEOPLE TO KEEP EATING FRUITS AND VEGETABLES AT A NEWS CONFERENCE RICHARD WILES THE PRINCIPAL AUTHOR SAID THE RISK FROM NOT EATING FRUITS AND VEGETABLES IS GREATER THAN THE RISK FROM PESTICIDES FDA OFFICIALS WHILE AGREEING WITH THE GROUPS' CALL TO REDUCE PESTICIDE USE SAID THE STUDY MAY OVERSTATE THE RESIDUES CONSUMED BY PEOPLE SOME INDUSTRY GROUPS WERE CRITICAL AS WELL THE NATIONAL FOOD PROCESSORS ASSOCIATION SAID ITS TESTING RARELY FINDS DETECTABLE LEVELS OF PESTICIDE RESIDUES IN FOOD 9306280020 930628 IT'S TRUE AGAIN THE GRINCHES LOSE BY TRYING TO STEAL FROM DR SUES BY CRISTINE GONZALES STAFF REPORTER OF THE WALL STREET JOURNAL A POTSMOKING FLOWERCHILD CAT IN THE HAT IT CANNOT BE NO NO IT CANNOT BE THAT WINNING THOUSANDS IN LOOT MORE PROSAICALLY PUT MAKERS OF UNLICENSED DR SEUSS PARAPHERNELIA HAVE HAD THE BOOK THROWN AT THEM IN THE MONTH SINCE THE ESTATE OF THE LATE CHILDREN'S AUTHOR WON A 15 MILLION JUDGMENT AGAINST A LOS ANGELES TSHIRT MAKER THE JUDGMENT CONCLUDED THE CASE AGAINST MANUFACTURER AARON UNGER AND AN ASSOCIATION OF MANUFACTURERS CALLED FULLMOON WHICH ESTATE ATTORNEYS HAD CHARGED WITH INFRINGING UPON COPYRIGHTS BY DEPICTING THE CAT IN THE HAT THE GRINCH HORTON THE ELEPHANT AND OTHER SEUSS CHARACTERS IN VARIOUS UNSEUSSLIKE POSES AMONG THE OFFENDING DESIGNS THE BUMBLING CARTOON CAT IN HIS REDANDWHITE STOVEPIPE SMOKING MARIJUANA AND GIVING THE PEACE SIGN MANY OF THE PARODIES ALSO VIOLATE THE EDUCATIONAL LESSONS AND VALUES OF THEODOR S GEISEL WHO WROTE UNDER THE PSEUDONYM DR SEUSS SAYS ANTHONY M STIEGLER A SAN DIEGO ATTORNEY REPRESENTING THE GEISEL ESTATE THIS IS ALL PART OF A WIDESPREAD COUNTERFEITING CAMPAIGN THAT HAS TO STOP ABOUT 65 PENDING INFRINGEMENT CASES REMAIN HE SAYS BUT AS WORD OF THE BIG JUDGMENT HAS SPREAD THE INFRINGERS ARE MORE OR LESS LINING UP TO SETTLE THAT COULD BE A LOT OF SETTLING DR SEUSS WEAR MUCH OF IT UNAUTHORIZED HAS EMERGED IN RECENT YEARS AS HAUTE COUTURE ON SKI SLOPES AND IN RAVES HELD AT UNDERGROUND DANCE CLUBS WHERE TWENTYSOMETHINGS GROOVE TO ACIDHOUSE MUSIC IN TALL CAT HATS STRIPED STOCKINGS AND SEUSSIAN TSHIRTS THE STRIPED HATS WERE EVEN SPOTTED AT A RECENT UCLA GRADUATION CEREMONY IN PLACE OF THE TRADITIONAL MORTARBOARD MEMBERS OF THE RAVE CULTURE SAY THE FASCINATION WITH DR SEUSS LIES IN A GENUINE APPRECIATION OF HIS WORK THE SIMPLICITY AND RHYTHM OF HIS LANGUAGE BECOMES LIKE MUSIC SAYS MARTY CURE A LOS ANGELES ABSTRACT ARTIST WITH HIS TOKINGCAT SHIRT AND TALL TALL CAT HAT HE GOES TO RAVE DANCES WHEREVER THEY'RE AT 9306280019 930628 THESE INMATES SERVE LENGTHY SENTENCES FROM THE PODIUM TOASTMASTERS SPEAKERS CLUBS ATTRACT CAPTIVE AUDIENCES IMPRESSING THE PAROLE BOARD BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL BRYANT WITH HIS BLUE BUTTONDOWN SHIRT AND CLOSELYCROPPED BLOND HAIR COULD BE ANY TOASTMASTER SPEAKING ABOUT POSITIVE THINKING BUT MR BRYANT DIFFERS FROM MOST OF THE ASPIRING ORATORS WHO JOIN THE WEEKLY SPEAKERS CLUB HIS SPEECHES AREN'T DELIVERED IN THE HOLIDAY INN BALLROOM BUT BEHIND BARBED WIRE HIS ESCORT TO SPEECH COMPETITIONS ISN'T A WIFE IT'S A GUARD MR BRYANT IS A CONVICTED FELON SERVING 21 YEARS FOR MANSLAUGHTER HE IS ALSO A MEMBER OF THE TOASTMASTERS CHAPTER THAT WAS NAMED THE WORLD'S MOST DISTINGUISHED LAST YEAR BY TOASTMASTERS INTERNATIONAL HEADQUARTERS IN MISSION VIEJO CALIF THE CLUB HAPPENS TO BE LOCATED AT PHELPS CORRECTIONAL CENTER A MEDIUMSECURITY PRISON IN DEQUINCY LA IN PRISON YOU'RE SURROUNDED BY ILLITERATE PEOPLE WHO ARE NOT SO PLEASANT OR CULTURED SAYS MR BRYANT WHO KNIFED A MAN OUTSIDE A CONVENIENCE STORE WE TRY TO STAY AWAY FROM THAT WE USE WORDS LIKE ASSUAGE PHANTASMAGORIC AND CASTIGATE ALL THE TIME WHEN RALPH CHESTNUT SMEDLEY A YMCA DIRECTOR IN SANTA ANA CALIF STARTED THE SPEAKERS CLUBS IN 1924 HE HOPED TO MOTIVATE A CROWD OF GENTEEL BUSINESSMEN TODAY TOASTMASTERS HAS 180000 MEMBERS WORLDWIDE MANY OF THEM MIDLEVEL MANAGERS SECRETARIES AND REALESTATE AGENTS WHO PAY 36 IN ANNUAL DUES TO HEAR EACH OTHER TALK MR SMEDLEY PROBABLY DIDN'T ANTICIPATE THAT ORATORY WOULD APPEAL TO CROOKS BUT ALREADY 52 OF THE WORLD'S 8000 TOASTMASTERS CLUBS ARE BEHIND BARS WITH SIX TO 10 NEW ONES CROPPING UP EVERY YEAR CONVICTS MANY OF WHOM ARE POORLY EDUCATED SAY THEY HOPE TO LEARN HOW TO EXPRESS THEMSELVES BETTER ATTENDANCE GOES UP WHEN COOKIES ARE SERVED I THOUGHT IT WAS A HIGH FALUTIN' CLASSY GROUP SAYS STEVE RADER WARDEN AT THE DEQUINCY PRISON BUT HE SAYS HIS PRISON'S 30MEMBER CLUB FORMED IN 1986 AT THE SUGGESTION OF A REFORMMINDED JUDGE AND FELLOW TOASTMASTER CAN MATCH BON MOTS WITH THE BEST OF THEM THEY'RE SO USED TO LYING THEY CAN GIVE SPEECHES WITH SO MUCH FEELING THE FELONS WHO TEACH THEMSELVES USING OFFICIAL TOASTMASTERS MANUALS FIND PLENTY TO TALK ABOUT DONALD WRIGHT WHO GOT A LIFE SENTENCE FOR KILLING HIS WIFE SAYS MEMBERS OF THE PRISON CLUB IN ANGOLA LA TRY TO STAY ABREAST OF WHAT'S GOING ON IN THE FREE WORLD SPEAKING ABOUT SUCH CURRENT EVENTS AS THE WACO TEXAS TRAGEDY AND RUSSIAN POLITICS IN THE STATE PRISON IN FLORENCE ARIZ TOASTMASTERS GIVE IMPROMPTU TALKS ON TIMELY ISSUES LIKE WHAT TO TELL THE PAROLE BOARD AND HOW TO REACT WHEN THE GUARD TELLS YOU TO TUCK IN YOUR SHIRT TUCK IT IN THEN THANK THE GUARD FOR REMINDING YOU OF THE RULES SOME OF THE BEST SPEAKERS AT THE FEDERAL PENITENTIARY CLUB IN DULUTH MINN HAVE BEEN EVANGELISTS CONVICTED OF FRAUD THEY'RE SPELLBINDING AN INSPIRATION TO ALL OF US MARVELS DAVID SHIELDS A CHICAGO JUDGE SERVING 37 MONTHS FOR EXTORTION AMONG OTHER THINGS THE JUDGE HAS SPOKEN ABOUT THE NEED FOR A GOLF COURSE ON PRISON GROUNDS BERNARD LAWSON A FORMER INTERNAL REVENUE SERVICE EXAMINER CONVICTED OF EMBEZZLING IS NOW TREASURER OF THE ATLANTA FEDERAL PENITENTIARY CLUB INMATES HAVE FOUND SEVERAL BENEFITS TO GIVING SPEECHES BEHIND BARS THERE IS PLENTY OF TIME FOR EXAMPLE TO PREPARE THEIR REMARKS IN ATLANTA PRISONERS WORK THEIR WAY THROUGH THE 71PAGE SPEAKER'S MANUAL AND EARN THE RANK OF COMPETENT TOASTMASTER IN JUST SIX MONTHS A THIRD THE TIME IT TAKES MOST MEMBERS SAYS MARY FRANCES A TOASTMASTERS DISTRICT GOVERNOR WHO OVERSEES CLUB ACTIVITY IN GEORGIA THE PRISONERS ARE STICKLERS FOR THE PRECEPTS OF TOASTMASTERS' FOUNDER MR SMEDLEY HE DEPLORED CUSSING IN A 1947 ARTICLE DON'T DABBLE IN DIRT LIKEWISE DAVID NORMAN A DRUG DEALER COVERED WITH DRAGON TATTOOS MAKES SURE ATLANTA CLUB MEMBERS REFRAIN FROM LINGUISTIC FAUX PAS I BELIEVE WHAT YOU WANTED TO SAY WAS NOT GOOD ETIQUETTE' HE CHIDES A FELLOW TOASTMASTER IN FOR MURDER THE CLUB IS TRYING TO BUCK THE JAMES CAGNEY STEREOTYPE OF A CONVICT HE LATER EXPLAINS JUST BECAUSE WE'RE IN PRISON DOESN'T MEAN WE DON'T KNOW HOW TO WEAR TIES AT TOASTMASTERS HEADQUARTERS EXECUTIVE DIRECTOR TERRENCE MCCANN SAYS I HAPPEN TO BELIEVE IN PRISON CLUBS MR MCCANN A FORMER OLYMPIC WRESTLER ADDS IT'S A GOOD REHABILITATION TOOL STILL THE IMPRISONED TOASTMASTERS AREN'T ALWAYS POPULAR AMONG THEIR LAWABIDING FELLOW MEMBERS AT THE SPRING SPEECH COMPETITION IN OKLAHOMA MOST TOASTMASTERS DON TUXEDOS AND TAFFETA GOWNS PRISONERS WEAR REGULATION KHAKI PANTS THEY'RE LIKE LEPERS SAYS BARBARA DILLON A DISTRICT GOVERNOR IN NORMAN OKLA A LOT OF PEOPLE DON'T WANT ANYTHING TO DO WITH THEM WHICH BRINGS US TO THE THORNY ISSUE OF CONVICTS WHO COMPETE MR BRYANT WHO HAS BEEN TO FOUR OUTSIDE COMPETITIONS CONVINCED OFFICIALS IN LOUISIANA AND FLORIDA TO LET HIM SPEND A NIGHT IN A RADISSON HOTEL SUITE OVERLOOKING THE OCEAN FOR A REGIONAL CONTEST AFTER HE WON THE STATE TITLE PRISON GUARD OPHIE BREAUX FOLLOWED MR BRYANT EVERYWHERE AND IS CONVINCED THAT THE THOUGHT OF ESCAPING NEVER ENTERED HIS MIND THE THOUGHT HAS STRUCK OTHER TOASTMASTERS ONE MURDERER FROM THE MINIMUMSECURITY PRISON IN TAFT OKLA WALKED OUT OF A TULSA SPEECH CONTEST TWO YEARS AGO RAYMOND FERGUSON WHO WAS SUPPOSED TO SERVE A LIFE SENTENCE FOR KILLING HIS WIFE HAD BEEN A MODEL INMATE SAYS WARDEN MICHAEL CARR ALTHOUGH HE CAN'T REMEMBER ANY OF HIS SPEECHES THE MANHUNT CONTINUES PRISONERS HAVE FOUND MORE BENIGN USES FOR THEIR ORATORICAL SKILLS TOASTMASTERS IN THE ATLANTA PENITENTIARY HAVE SWEETTALKED ADMINISTRATORS INTO PERKS INCLUDING AN ASPHALT JOGGING TRACK PERMISSION TO USE PRISON MICROWAVE OVENS AND THE ADDITION OF DRIED FRUIT AT THE PRISON STORE MR BREAUX THE LOUISIANA GUARD HAS SEEN A TOASTMASTER CAJOLE EXTRA HAMBURGER PATTIES AND CHEESE OUT OF KITCHEN STAFF NORMALLY INMATES HAVE TO STEAL FROM THE KITCHEN HE SAYS MICHAEL DAMIEN CONVICTED OF MURDER IS TRYING TO OVERTURN HIS LIFE SENTENCE WHEN I'M RELEASED I WAS TOLD THERE WILL BE A LOT OF MEDIA COVERAGE HE SAYS AND TOASTMASTERS IS HELPING ME PREPARE ORATORY MAY EVEN HELP SOME OF THE CONVICTS STAY OUT OF TROUBLE DOWN THE ROAD ONLY ONE OUT OF 80 TOASTMASTERS WHO HAVE LEFT THE DEQUINCY PRISON SINCE 1986 HAS BEEN JAILED AGAIN WHILE 70 OF THE NATION'S CONVICTS USUALLY RETURN ACCORDING TO STATE CIVIL COURT JUDGE ROBERT DOWNING IN BATON ROUGE LA IF ALL THE PEOPLE IN HERE SPOKE BETTER SAYS MR DAMIEN IN THE ATLANTA PRISON THEY WOULDN'T BE HERE 9306280018 930628 WESTINGHOUSE COURTS JORDAN TO BE ITS CHIEF CHOICE OF EXPEPSI OFFICIAL ISN'T FIRM SOME FAVOR KEEPING INSIDER CLARK BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP IS WOOING MICHAEL H JORDAN FORMER HEAD OF PEPSICO INC'S INTERNATIONAL OPERATIONS TO BE ITS NEW CHIEF EXECUTIVE OFFICER OFFICIALS FAMILIAR WITH WESTINGHOUSE'S LONG SEARCH SAID THE COMPANY HASN'T REACHED A FINAL AGREEMENT WITH MR JORDAN AND THAT SOME DIRECTORS STILL FAVOR INSIDER GARY M CLARK PRESIDENT AND ACTING CHIEF EXECUTIVE STILL AN ANNOUNCEMENT COULD COME AS SOON AS WEDNESDAY WHEN THE NINEMEMBER BOARD MEETS WE'RE MAKING VERY REAL PROGRESS SAID ONE PERSON CLOSE TO THE SEARCH WE'RE A LOT CLOSER THAN WE WERE TWO WEEKS AGO THE NO 1 JOB AT THE TROUBLED MANUFACTURING AND ELECTRONICS COMPANY HAS BEEN VACANT SINCE JANUARY WHEN FORMER CHAIRMAN AND CHIEF EXECUTIVE PAUL E LEGO RESIGNED UNDER PRESSURE A WESTINGHOUSE SPOKESMAN DECLINED TO COMMENT ON WHETHER AN OFFER HAD BEEN MADE TO MR JORDAN ADDING NO FINAL DECISION HAS BEEN MADE MR JORDAN A PRINCIPAL AT CLAYTON DUBILIER & RICE A NEW YORK PRIVATE INVESTMENT FIRM COULDN'T BE REACHED FOR COMMENT WESTINGHOUSE HAS BEEN SCOURING THE COUNTRY FOR AN EXECUTIVE WILLING TO TACKLE ITS MYRIAD FINANCIAL AND STRATEGIC PROBLEMS THE COMPANY WHICH HAS RETAINED EXECUTIVE SEARCH FIRM HEIDRICK & STRUGGLES INC HAS BEEN SPURNED BY EARLIER CANDIDATES INCLUDING PAUL STERN FORMER CHAIRMAN OF NORTHERN TELECOM LTD MOREOVER WESTINGHOUSE DIRECTORS HAVE BEEN DIVIDED ON WHETHER TO GO WITH AN OUTSIDER OR NAME MR CLARK A 36YEAR COMPANY VETERAN THE BOARD IS VERY SPLIT ON THE NOTION OF WHETHER TO HAVE SOMEBODY FROM THE INSIDE OR GO OUTSIDE SAID ONE PERSON FAMILIAR WITH THE SITUATION MCKINSEY ALUM THE SELECTION OF 57YEAROLD MR JORDAN WOULD BE A MAJOR DEPARTURE FOR INBRED WESTINGHOUSE WHICH FOR DECADES HAS PROMOTED FROM WITHIN AND BEEN HEADED BY ENGINEERS WESTINGHOUSE HURT BY A DISASTROUS FORAY INTO FINANCIAL SERVICES AND SLOW GROWTH IN A VARIETY OF OLD MANUFACTURING AND DEFENSE BUSINESSES WOULD BE HANDING ITS FUTURE TO AN EXECUTIVE KNOWN FOR STRATEGIC AND FINANCE SKILLS AND EXPERTISE IN CONSUMER PRODUCTS IN THIS REGARD WESTINGHOUSE WOULD FOLLOW INTERNATIONAL BUSINESS MACHINES CORP WHICH TAPPED LOUIS V GERSTNER JR AS ITS NEW CHIEF EXECUTIVE IN MARCH MR GERSTNER HAD NO PREVIOUS COMPUTER INDUSTRY EXPERIENCE JUST AS MR JORDAN HAS NO BACKGROUND IN HEAVY MANUFACTURING WESTINGHOUSE'S TRADITIONAL BUSINESS BOTH MEN ONCE WORKED AT CONSULTANT MCKINSEY & CO WESTINGHOUSE FOLLOWERS CONTEND THAT AN OUTSIDER COULD BRING A MUCH NEEDED NEW PERSPECTIVE THEY NEED A CEO WITH A BROAD APPROACH WHO IS WILLING TO THINK IN SOME NEW WAYS THEY DON'T NEED THE OLD ENGINEERING MENTALITY SAID A FORMER WESTINGHOUSE EXECUTIVE WESTINGHOUSE'S SEARCH FOR A NEW CHIEF EXECUTIVE BEGAN JAN 27 AFTER DIRECTORS LOST CONFIDENCE IN MR LEGO'S ABILITY TO SWIFTLY RIGHT THE COMPANY WHICH HAD 1992 REVENUE FROM CONTINUING OPERATIONS OF 845 BILLION BUT HAS BEEN STUNG BY 5 BILLION IN CHARGES FROM SOUR LOANS IN ITS CREDIT UNIT SHORTLY AFTER A SECOND ATTEMPT TO SELL THE UNIT'S PORTFOLIO TO GENERAL ELECTRIC CO COLLAPSED MR LEGO RESIGNED IF MR JORDAN ACCEPTS THE POST HE'S LIKELY TO PULL ON HIS STRATEGIC PLANNING EXPERTISE AND ALSO BRING IN NEW BLOOD AT THE TOP AT PEPSICO MR JORDAN WHO HAS A LOWKEY INTROVERTED MANNER HELD NUMEROUS TOP JOBS INCLUDING CHIEF FINANCIAL OFFICER PRESIDENT HEAD OF ITS FRITOLAY SNACK FOODS UNIT AND CHAIRMAN OF INTERNATIONAL SOFT DRINKS AND SNACKS HE WAS CONSIDERED ONE OF A TRIUMVIRATE OF EXECUTIVES WHO RAN THE COMPANY FROM 1986 UNTIL HIS DEPARTURE LAST YEAR INSIDERS SAY HE LEFT ON FRIENDLY TERMS AFTER CONCLUDING HE WOULD NEVER BE TAPPED FOR THE TOP POST ALTHOUGH MR CLARK APPEARS TO REMAIN A CONTENDER FOR THE TOP SPOT SOME OBSERVERS CONSIDER HIM A DEFAULT CANDIDATE IF THEY CHOOSE HIM NOW YOU'VE GOT TO START WONDERING WHAT CHOICE HE WAS FIFTH SIXTH SEVENTH SAID RALPH WHITWORTH PRESIDENT OF UNITED SHAREHOLDERS ASSOCIATION AN ACTIVIST GROUP THE 57YEAROLD MR CLARK WHO ONE UNDERLING DESCRIBES AS A PLAIN NICE GUY WITH A SMILE AND A HANDSHAKE FOR EVERYONE IS SAID TO MANAGE BY CONSENSUS AND DELEGATE AUTHORITY HE IS LITTLE KNOWN OUTSIDE OF WESTINGHOUSE WHERE HE'S HEADED THE COMPANY'S DISTRIBUTION AND CONTROLS BUSINESS AND INDUSTRIES GROUP MOST RECENTLY HE HAS LED WESTINGHOUSE'S EFFORTS TO SELL OFF ASSETS INSIDERS SAY MR CLARK'S DECISION TO CUT 50 HEADQUARTERS WORKERS LAST WEEK WAS A HALFHEARTED ATTEMPT TO SHOW HE'S IN CHARGE BUT HUNDREDS OF MORE JOB CUTS ARE NEEDED YOU WOULD WANT HIM FOR A FRIEND BUT HE DIDN'T MAKE HIS MARK AT WESTINGHOUSE BY GREAT INNOVATIONS OR BY GREAT LEADERSHIP ANOTHER FORMER WESTINGHOUSE EXECUTIVE SAID 9306280017 930628 DELTA AIR LINES WOULD PAY 46 MILLION IN SETTLEMENT ATLANTA AP DELTA AIR LINES HAS AGREED TO DISTRIBUTE 46 MILLION IN CASH AND 20000 FREE TICKETS TO 529 PAN AM FLIGHT ATTENDANTS WHO WERE INTERVIEWED BY DELTA BUT NOT HIRED THE PAYMENTS ANNOUNCED FRIDAY WERE PART OF A PROPOSED SETTLEMENT OF A CLASSACTION LAWSUIT FILED AGAINST DELTA BY THE FLIGHT ATTENDANTS THE PLAINTIFFS ACCUSED THE AIRLINE OF ILLEGALLY ASKING PERSONAL QUESTIONS DURING 1991 INTERVIEWS AND DISCRIMINATING ON THE BASIS OF AGE SEX OR RACE THE FLIGHT ATTENDANTS WERE INTERVIEWED WHEN DELTA BOUGHT PAN AM'S EUROPEAN ROUTES AND NORTHEAST SHUTTLE IN 1991 DELTA INTERVIEWED ABOUT 10000 PAN AM EMPLOYEES AND HIRED ABOUT 7800 SOME FLIGHT ATTENDANTS COMPLAINED THAT DELTA INTERVIEWERS ASKED THEM ABOUT ABORTIONS BIRTH CONTROL AND MARITAL HISTORIES ABOUT 200 FILED COMPLAINTS WITH THE CITY AND STATE OF NEW YORK WHERE MOST OF THE INTERVIEWS WERE CONDUCTED A HEARING ON THE SETTLEMENT WAS SCHEDULED FOR NEXT MONTH IN US DISTRICT COURT IN VIRGINIA APPROVAL WOULD MEAN CASH PAYMENTS OF VARYING AMOUNTS FOR THE FLIGHT ATTENDANTS DEPENDING ON THEIR PAN AM SENIORITY AND OTHER FACTORS THEY WOULD GET TWO PASSES ON THE AIRLINE FOR EACH YEAR OF SENIORITY UNDER THE TERMS OF THE SETTLEMENT DELTA WOULD NOT HAVE TO ADMIT WRONGDOING IN RETURN THE FLIGHT ATTENDANTS WOULD DROP ALL HIRINGRELATED COMPLAINTS AGAINST THE ATLANTABASED AIRLINE 9306280016 930628 INTERNATIONAL CLOUT OF JAPAN'S RURAL AREAS SPARKS BATTLE GERRYMANDERED FARM VOTES KEPT OLD PARTY IN POWER BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL YASUGI JAPAN ONE EXAMPLE OF WHY SO MANY JAPANESE CRITICIZE JAPAN'S CURRENT FORM OF DEMOCRACY IS MASAHARU ITAMOCHI A RICE FARMER IN THIS TOWN NEAR THE SEA OF JAPAN WHEN MR ITAMOCHI DECIDED TO EXPAND HIS RICE FIELD RECENTLY HE NEEDED TO BUY A NATIONAL ROAD THAT SEPARATED HIS TWO PIECES OF PROPERTY THE PAPERWORK COULD HAVE TAKEN TWO TO THREE YEARS HE SAYS BUT WITH THE HELP OF HIS LOCAL MEMBER OF PARLIAMENT IT ONLY TOOK SIX MONTHS THERE'S A REASON POLITICIANS GIVE MR ITAMOCHI WHAT HE WANTS HIS VOTE COUNTS A LOT DESPITE THE STEADY URBANIZATION OF JAPAN SINCE THE WAR THE GOVERNMENT HAS DONE LITTLE REDISTRICTING TO REFLECT THE POPULATION SHIFT AWAY FROM THE FARMS THUS MR ITAMOCHI'S PREFECTURE GETS THE SAME FIVE LEGISLATORS IN JAPAN'S NATIONAL DIET AS A DISTRICT IN CROWDED TOKYO EVEN THOUGH MR ITAMOCHI'S REGION HAS ONLY ABOUT TWOTHIRDS THE POPULATION THE DEMOGRAPHIC DISPARITY IS SO GREAT ELSEWHERE THAT SOME RURAL DISTRICTS HAVE THREE TIMES THE REPRESENTATION OF A COMPARABLE URBAN AREA THIS INEQUALITY LIKE MUCH OF JAPAN'S POSTWAR POLITICAL ORDER IS NOW UNDER SEVERE STRAIN A BATTLE OVER ELECTORAL REFORM EARLIER THIS MONTH SPLIT THE RULING LIBERAL DEMOCRATIC PARTY IN JULY 18 NATIONAL ELECTIONS THE LDP IS EXPECTED TO LOSE CONTROL OF PARLIAMENT FOR THE FIRST TIME SINCE 1955 THE CIVIL WAR OVER REFORM COVERS A WIDE RANGE OF ISSUES ABOUT THE WAY JAPAN IS GOVERNED FROM CURBING CORRUPTION TO FORCING MORE OPEN DEBATE ABOUT IMPORTANT ISSUES FOR MANY THE HEART OF REFORM LIES IN CREATING A DEMOCRACY THAT BETTER REPRESENTS THE PEOPLE IT'S NO SURPRISE THAT LDP STALWARTS STILL HEAVILY DEPENDENT ON THE RURAL VOTE HAVE SHIED AWAY FROM BACKING SUCH A CHANGE IF REFORM OCCURS THE NUMBER OF SEATS FROM THIS DISTRICT WILL BE REDUCED TO FOUR OR THREE SAYS YOSHIO SAKURAUCHI THE 81YEAROLD SPEAKER OF THE LOWER HOUSE WHO HAS REPRESENTED THE YASUGI AREA FOR FOUR DECADES IT'S BETTER FOR THIS REGION TO HAVE AS MANY REPRESENTATIVES AS POSSIBLE HIS CONSTITUENTS LIKE THAT LOGIC AFTER A CAMPAIGN SPEECH TO A STANDINGROOM ONLY CROWD HERE SATURDAY MR SAKURAUCHI WAS CHEERED ENTHUSIASTICALLY BUT IN JAMMED CITIES PEOPLE ARE GETTING FED UP IT'S TOTALLY UNFAIR SAYS HISAKAZU HIRABAYASHI A 42YEAROLD SUBWAY STATION EMPLOYEE TOKYOITES HAVE MANY BONES TO PICK WITH THE LDP THESE DAYS AND GERRYMANDERING IS JUST ONE THE LDP CAPTURED SLIGHTLY MORE THAN ONETHIRD OF THE 128 SEATS CONTESTED IN ELECTIONS YESTERDAY FOR TOKYO'S METROPOLITAN ASSEMBLY A VOTE SOME ANALYSTS CONSIDER A HARBINGER FOR THE COMING NATIONAL CONTEST THE JAPAN NEW PARTY AN ANTILDP CONSERVATIVE PARTY FORMED LAST YEAR WAS THE BIG WINNER IN THE RACE 20 OF ITS 22 CANDIDATES GOT SEATS TURNOUT WAS A RECORD LOW 514 THE LDP ACTUALLY DID SLIGHTLY BETTER THAN IN THE LAST ELECTION FOUR YEARS AGO TAKING 44 SEATS COMPARED WITH 43 IN 1989 ACCORDING TO PRELIMINARY REPORTS ON NHK JAPAN'S PUBLIC BROADCASTER BUT THE 1989 VOTE WAS A DISASTER FOR THE LDP COMING ON THE HEELS OF AN UNPOPULAR SALES TAX AND A PAYOFF SCANDAL THE BIG LOSER IN YESTERDAY'S TOKYO VOTE WAS THE SOCIALIST PARTY WHICH WON ONLY 13 SEATS COMPARED WITH 29 FOUR YEARS AGO THE LDP GOT MORE BAD NEWS YESTERDAY WHEN A GROUP OF ANTILDP PARTIES INCLUDING SHINSEITO A NEW PARTY OF CONSERVATIVE LDP DEFECTORS AND THE SOCIALIST PARTY AGREED TO COOPERATE IN THE COMING NATIONAL CAMPAIGN HOWEVER THE GROUP FELL SHORT OF PROMISING TO FORM A COALITION GOVERNMENT SHOULD ITS COMBINED FORCES WIN A MAJORITY WHAT'S MORE THE PARTIES FAILED TO WIN SUPPORT FROM TWO OTHER ANTILDP GROUPS THE JAPAN NEW PARTY AND SAKIGAKE A SMALLER LDP SPLINTER PARTY THE FAILURE TO UNITE ALL ANTILDP GROUPS AGAINST THE STILL POWERFUL LIBERAL DEMOCRATS IS A MAJOR FIASCO SAYS POLITICAL ANALYST TAKAYOSHI MIYAGAWA IT LOOKS MORE AND MORE AS THOUGH NEITHER THE LDP NOR THE COALITION WILL WIN A CLEAR MAJORITY IN THE JULY ELECTIONS THE LDP'S LONG REIGN IN JAPAN HAS STEMMED FROM ITS ABILITY TO FORGE ITS OWN COALITION AMONG A WIDE RANGE OF INTERESTS FROM FARMERS TO BIG BUSINESS BUT ITS MOST STABLE BASE OF SUPPORT REMAINS JAPAN'S OVERREPRESENTED RURAL AREAS THE PARTY'S SUPPORT RATE IN SMALL VILLAGES AND TOWNS WAS 412 COMPARED WITH 262 IN JAPAN'S 13 LARGEST CITIES AND TOWNS ACCORDING TO POLLING DONE BY TSUKUBA UNIVERSITY THAT GAP GETS MAGNIFIED BECAUSE RURAL VOTERS TEND TO TURN OUT FOR ELECTIONS MORE CONSISTENTLY THAN URBAN VOTERS SO THE LDP'S POLICIES TEND TO BE SKEWED TOWARD THE FARMS THERE ARE SPECIAL TAX BREAKS FOR FARMERS THERE ARE PRICE SUPPORTS TO KEEP FOOD PRICES HIGH AND THERE IS THE UNWAVERING LDP POSITION THAT NO FOREIGN RICE BE ALLOWED INTO THE MARKET URBAN VOTERS TEND TO BE MORE INTERESTED IN ISSUES SAYS GERALD CURTIS A JAPAN EXPERT AT COLUMBIA UNIVERSITY IN YASUGI VOTES ARE OFTEN CAST ON THE BASIS OF FAMILY TIES TRADITION AND FAVORS GRANTED I'M NOT MUCH INTERESTED IN THE ISSUES SAYS MASAO TSUNOMORI A LACONIC 68YEAROLD FARMER I VOTE FOR SAKURAUCHI BECAUSE MY FATHER VOTED FOR SAKURAUCHI THE TIMELY ISSUE OF CORRUPTION FALLS ON DEAF EARS OUT ON THE FARM NOBORU TAKESHITA A SCANDALPLAGUED FORMER PRIME MINISTER IS REVILED IN THE NATIONAL PRESS BUT IS REVERED BY HIS CONSTITUENCY HERE FAVORS MORE THAN IDEOLOGY ARE WHAT COUNT REGARDLESS OF THE PARTY AND ONLY THE LDP CAN DELIVER THE BIG FAVORS THE PRICE SUBSIDIES THE ROADS THE BUILDINGS YASUGI APPEARS TO BE A WEALTHY REGION ITS SHOPS AUTO DEALERSHIPS AND PUBLIC CENTERS WOULD PUT TO SHAME SIMILAR RURAL AREAS IN THE US THE CONSTRUCTION MINISTRY HAS SET UP A LOCAL OFFICE EVERY FEW MILES TO ADMINISTER ITS MANY PROJECTS AND REMIND CITIZENS OF WHO'S WATCHING OUT FOR THEM THE AGRICULTURE MINISTRY HAS PROUDLY PLANTED BILLBOARDS BETWEEN THE RICE PADDIES EXPLAINING HOW NATIONAL MONIES MADE IRRIGATION IN THE REGION POSSIBLE THE POPULATION OF THIS DISTRICT IS VERY SMALL YET WE HAVE HIGHWAYS ROADS AND BRIDGES SAYS MR ITAMOCHI THE LDP'S CONTRIBUTION HAS BEEN VERY BIG MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9306280015 930628 CORRECTIONS & AMPLIFICATIONS DRAWINGS OF CITICORP CHIEF EXECUTIVE OFFICER JOHN REED AND JOHN PETERPAUL THE TOP AIRLINE NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS WERE INADVERTENTLY SWITCHED IN FRIDAY'S EASTERN EDITION MR REED'S PICTURE SHOULD HAVE ACCOMPANIED A PAGEONE ARTICLE ON CITICORP WHILE MR PETERPAUL'S SHOULD HAVE APPEARED WITH A WHO'S NEWS ARTICLE ON THE MARKETPLACE PAGE TRACOR INC LAST YEAR EARNED 11 MILLION BEFORE INTEREST AND TAXES WHILE VITRO CORP EARNED 19 MILLION BEFORE INTEREST AND TAXES ADDITIONALLY TRACOR IN 1991 REPORTED NET INCOME OF 389 MILLION INCLUDING AN EXTRAORDINARY GAIN OF 428 MILLION FROM THE FORGIVENESS OF DEBT FRIDAY'S CORPORATE FOCUS ARTICLE MISSTATED THESE FIGURES EDWARD SCOLNICK IS PRESIDENT OF MERCK RESEARCH LABORATORIES AND EXECUTIVE VICE PRESIDENT OF ITS PARENT COMPANY MERCK & CO AN ARTICLE FRIDAY ABOUT CANCER RESEARCH INCORRECTLY STATED THAT DR SCOLNICK WAS PRESIDENT OF MERCK W SEYMOUR HOLT RECENTLY ELECTED TO THE BOARD OF PHARMACY MANAGEMENT SERVICES INC PREVIOUSLY SERVED AS A VICE PRESIDENT OF ELI LILLY & CO BASED ON INFORMATION PROVIDED BY PHARMACY MANAGEMENT AN ITEM IN TUESDAY'S WHO'S NEWS COLUMN INCORRECTLY STATED THAT MR HOLT HAD SERVED AS A VICE PRESIDENT AT ELI LILLY'S DISTA PRODUCTS CO UNIT 9306280013 930628 ORDERS FELL IN MAY FOR MACHINE TOOLS FROM PRIOR MONTH BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS FELL 89 IN MAY FROM APRIL AS THE MAIN PROPELLANT FOR ORDERS THIS YEAR PURCHASES BY AUTO MAKERS SLOWED DESPITE THE DECLINE FROM APRIL TO 3173 MILLION FROM 3483 MILLION MAY'S ORDERS REMAINED AT A HIGH LEVEL COMPARED WITH THE YEAREARLIER MONTH THEY LEAPED 99 FROM 1592 MILLION AND IN THE YEAR'S FIRST FIVE MONTHS TOOL ORDERS WERE UP 38 TO 146 BILLION FROM 11 BILLION A YEAR EARLIER ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY ORDERS FROM AUTO MAKERS HAVE CONTINUED TO MAKE UP THE BULK OF THE INCREASES ANALYSTS SAID AUTO MAKERS AROUND THE WORLD ARE DOING A LOT OF WORK A LOT OF REDESIGNS NEW DRIVE TRAINS SAID J BLAIR BRUMLEY AN ANALYST WITH DAIN BOSWORTH INC IN MINNEAPOLIS BUT THAT MOVES IN CYCLES SO IT'S GOING TO TAPER OFF INDEED ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC SAID HE EXPECTS AUTORELATED MACHINETOOL ORDERS TO SLOW AFTER JUNE THOUGH OVERALL ORDERS SHOULD FINISH THE YEAR UP 15 TO 20 AND HE NOTED THAT ONLY A FEW MACHINETOOL MAKERS SUCH AS NEWCOR INC GIDDINGS & LEWIS INC AND THE INDUSTRIALAUTOMATION UNIT OF LITTON INDUSTRIES INC ARE BENEFITING FROM THE HIGH ORDER TOTALS SO FAR FOR OTHER COMPANIES ORDERS ARE SLUGGISH MOREOVER THE MACHINETOOL CUSTOMERS OUTSIDE THE AUTO SECTOR THAT ARE BUYING AREN'T DOING SO BECAUSE OF A STRENGTHENING ECONOMY HE SAID INSTEAD THEY ARE SEEKING MACHINES THAT BOOST PRODUCTIVITY TO FIGHT COMPETITORS IN A LACKLUSTER ECONOMY ORDERS TO MACHINETOOL DISTRIBUTORS ALSO BACK UP THE INDUSTRY SLOWDOWN ORDERS SLID 23 IN MAY FROM APRIL LEVELS AND FELL 55 FROM MAY 1992 SAID THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION ITS INDEX BASED ON A THREEYEAR PERIOD INCLUDES FOREIGNMADE MACHINE TOOLS MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES ORDERS OF MACHINE TOOLS ARE CONSIDERED AN ECONOMIC HARBINGER BECAUSE THE PRODUCTS ARE SHIPPED NINE TO 18 MONTHS LATER ACCORDING TO THE ASSOCIATION DOMESTIC ORDERS FELL 29 IN MAY TO 3013 FROM 3104 MILLION IN APRIL COMPARED WITH MAY 1992 ORDERS SOARED 1246 FROM 1341 MILLION ON A YEARTODATE BASIS DOMESTIC ORDERS HAVE CLIMBED 41 TO 13 BILLION FROM 9255 MILLION ORDERS FOR EXPORT SHOWED WEAKNESS DIVING 58 TO 161 MILLION IN MAY FROM 38 MILLION IN APRIL AND FALLING 36 FROM 251 MILLION IN MAY 1992 THROUGH MAY ORDERS FOR EXPORT ROSE 18 TO 1531 MILLION FROM 1296 MILLION IN THE SAME PERIOD LAST YEAR COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES FIVEMONTH TOTAL FOR 1993 1098800000 FOR 1992 METALFORMING MACHINE ORDERS FIVEMONTH TOTAL FOR 1993 357100000 FOR 1992 286200000 COMPARATIVE SHIPMENT OF METALCUTTING MACHINES FIVEMONTH TOTAL FOR 1993 918750000 FOR 1992 742800000 METALFORMING MACHINE SHIPMENTS FIVEMONTH TOTAL FOR 1993 384350000 FOR 1992 273300000 9306280012 930628 SWEDEN'S IKEA FORGES INTO EASTERN EUROPE RETAILER TESTS NEW MARKETS VIA LAB' IN WARSAW BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL WARSAW IN A MUDDY PASTURE FLANKED BY FOURLANE FREEWAYS ON THE OUTSKIRTS OF THE POLISH CAPITAL SWEDISH FURNITURE GIANT IKEA AB IS BUILDING A LABORATORY FOR ITS AGGRESSIVE PUSH INTO EASTERN EUROPE THE SPRAWLING STORE UNDER CONSTRUCTION IN A WARSAW SUBURB CALLED JANKI PRONOUNCED YANKEE WILL COST BETWEEN 7 MILLION AND 14 MILLION WHEN IT OPENS LATE THIS SUMMER IT WILL BE THE BIGGEST OF IKEA'S SEVEN EASTERN EUROPEAN OUTLETS IKEA AND POLAND ARE MADE FOR EACH OTHER SAYS JAN MUSIOLIK IKEA'S GENERAL MANAGER FOR POLAND EVERY POLE IS A CRAFTSMAN AT HEART AT IKEA'S SMALL DOWNTOWN WARSAW STORE THE BEST SELLERS ALREADY ARE ASSEMBLEITYOURSELF KITCHEN CABINETS WARDROBES AND OTHER PRODUCTS THAT OFFER LOWCOST EFFICIENT STORAGE FOR TINY HOMES AND APARTMENTS THE QUESTION FACING THE NEW STORE IS WHETHER IKEA CAN ADAPT ITS HIGHVOLUME MASSMARKET RETAILING FORMULA TO EASTERN EUROPE'S SPECIAL CONDITIONS THE JANKI STORE WILL TEST CHANGES TO THE FORMULA CHANGES SWEDES CONSIDER CRUCIAL FOR SUCCESS IN POSTCOMMUNIST EASTERN EUROPE AT FIRST WE TRIED TO KEEP OUR EASTERN EUROPEAN STORES AS MUCH AS POSSIBLE LIKE ONES IN THE WEST SAYS ANDERS MOBERG THE CHIEF EXECUTIVE OF IKEA WE DIDN'T WANT TO APPEAR CONDESCENDING BUT HE ADDS THOSE STORES TURNED OUT TO BE TOO COSTLY FOR EASTERN EUROPE WHERE INCOMES HAVE FAR TO GO TO CATCH UP WITH THOSE IN THE WEST AT THE JANKI BUILDING SITE COSTCUTTING IS IN FULL SWING STROLLING THROUGH THE CAVERNOUS 7000SQUAREMETER BUILDING MR MUSIOLIK THE GENERAL MANAGER FOR POLAND TICKS OFF DOZENS OF FRUGALITIES THERE WILL BE FEWER TOILETS NO AIR CONDITIONING SPARTAN FLOORING AND ONLY RUDIMENTARY ELECTRICAL SYSTEMS PERMITTING THE SIMPLEST OF LIGHTING FOR FURNITURE DISPLAYS SOME OFFICE AND WAREHOUSE AREAS WON'T HAVE HOT WATER SUCH MEASURES WILL ADD UP TO A 35 SAVING ON CONSTRUCTION COMPARED WITH A STORE OF EQUAL SIZE IN THE WEST VETERAN EMPLOYEES WHO VISIT US HERE SAY IT'S LIKE TURNING BACK THE CLOCK TO WHAT IKEA STORES LOOKED LIKE 20 YEARS AGO MR MUSIOLIK SAYS HOWEVER IKEA WAS NEVER KNOWN FOR BEING SOFT ON COSTS THE COMPANY BECAME THE WORLD'S BIGGEST HOMEFURNISHINGS GROUP BECAUSE OF ITS LEGENDARY PENNYPINCHING ENABLING IT TO OFFER FUNCTIONAL SCANDINAVIANDESIGNED FURNITURE AT PRICES 20 LOWER THAN THE CHEAPEST COMPETITION THERE WERE OTHER REASONS TO BELIEVE THAT IF ANY WESTERN COMPANY COULD SUCCEED IN EASTERN EUROPE IT WOULD BE IKEA THE SWEDISH COMPANY HAS BEEN PROCURING PRODUCTS IN THE REGION FOR DECADES AND CURRENTLY OBTAINS 15 OF ITS FURNITURE THERE IKEA'S EGALITARIAN CULTURE SEEMED CERTAIN TO APPEAL TO POTENTIAL JOINTVENTURE PARTNERS AND BECAUSE IT IS STILL PRIVATELY OWNED IKEA COULD AFFORD TO SPURN THE TEMPTATION OF QUICK BUCKS AND STICK TO FOUNDER INGVAR KAMPRAD'S MISSION TO PROVIDE AFFORDABLE FURNITURE FOR PEOPLE WITH LIMITED BUDGETS SO EAGER WAS MR KAMPRAD TO SPREAD HIS MISSION TO THE RUSSIAN PEOPLE THAT HE JUMPED THE GUN ON RIVALS TO FORGE A BOLD TRADE ACCORD WITH SOVIET AUTHORITIES IN 1988 IKEA AGREED TO OVERHAUL A DOZEN RUNDOWN SOVIET FURNITURE FACTORIES TO SUPPLY RUSSIAN STORES MR KAMPRAD PLANNED TO OPEN BY 1991 THAT PLAN HOWEVER COLLAPSED ALONG WITH THE COUNTRY RESULTING IN IKEA'S ENTANGLEMENT IN LEGAL AND POLITICAL CLASHES INCLUDING ONE ACRIMONIOUS CASE REFERRED TO AN INTERNATIONAL ARBITRATION TRIBUNAL IN STOCKHOLM TERRIBLE PROBLEMS UNTANGLING VARIOUS OBLIGATIONS BETWEEN THE OLD USSR AND NEW REPUBLICS HAVE MADE US MUCH MORE CAUTIOUS MR MOBERG SAYS WE HAVE NO PLANS TO OPEN ANY RUSSIAN STORES FOR THE FORESEEABLE FUTURE FOR NOW IKEA HAS SHIFTED ITS SIGHTS TO POLAND HUNGARY AND THE CZECH AND SLOVAK REPUBLICS COMPANY OFFICIALS ACKNOWLEDGE THAT IKEA HAS SPENT BETWEEN 500 MILLION AND ONE BILLION KRONOR ON THE SEVEN EASTERN EUROPEAN STORES EXPECTED TO BE OPEN BY AUG 30 THE END OF THE CURRENT FISCAL YEAR IN POLAND THE DOWNTOWN WARSAW OUTLET SHARES A SLEEK BUILDING WITH A BUSTLING MCDONALD'S RESTAURANT THERE ARE ALSO STORES IN POSNAN AND GDANSK A BUDAPEST STORE OPENED IN 1990 AFTER THE FORMER CZECHOSLOVAKIA DISINTEGRATED IKEA ADDED A SMALL OUTLET IN BRATISLAVA MOST STORES ARE BOTH TRAINING CENTERS AND COMMERCIAL OUTLETS RATHER THAN SEND WORKERS FROM EASTERN EUROPE TO TRAIN IN THE WEST MR MOBERG SAYS IT'S BEEN CHEAPER AND MORE PRACTICAL TO SEND IKEA PEOPLE IN FROM THE WEST TO START NEW STORES ON A SMALL SCALE AND TRAIN PEOPLE SEEKING LOCAL SUPPLIERS LINING UP LOCAL SUPPLIERS IS CRUCIAL MR MOBERG ESTIMATES THAT A MINIMUM OF 60 LOCAL PRODUCTION WILL BE NECESSARY TO BRING IKEA'S PRICES WITHIN REACH OF A POLISH MASS MARKET IKEA HAS TRADITIONALLY SPURNED OWNERSHIP LINKS WITH ITS SUPPLIERS PREFERRING STRICTLY ARM'SLENGTH RELATIONS BUT AS GERMAN HOMEFURNISHING GROUPS MOVED IN AND BOUGHT UP DOZENS OF POLISH FURNITURE FACTORIES IKEA WAS FORCED TO TAKE DIRECT FINANCIAL STAKES IN SEVERAL SUPPLIERS PRICING IS STILL MAINLY GUESSWORK IN POLAND'S FLEDGLING MARKET ECONOMY MR MUSIOLIK ISN'T SURE EXACTLY HOW CHEAP IKEA'S PRODUCTS MUST BECOME TO UNDERCUT LOCAL RIVALS THAT IS PARTLY BECAUSE SOME PRICES IN THE MARKET DON'T BEAR ANY RELATIONSHIP TO PRODUCTION COSTS HAVING BEEN SET USING THE OLD STATEPRICING MECHANISMS SO MR MUSIOLIK IS DEVOTING MUCH TIME TO HELPING IKEA'S SUPPLIERS MAKE REALISTIC COST ESTIMATES INCLUDING INTEREST RATES THAT CURRENTLY HOVER AT 90 IT WOULD BE TEMPTING IKEA OFFICIALS ACKNOWLEDGE TO IMPORT FROM NEARBY SWEDEN ESPECIALLY SINCE THE RECENT 25 DEPRECIATION OF THE KRONOR HAS NARROWED THE COST GAP BUT THAT COULD JEOPARDIZE IKEA'S LONGTERM PROSPECTS COSTS OF RAW MATERIALS AND LABOR ARE GOING TO BE CHEAPER IN EASTERN EUROPE FOR THE NEXT 25 YEARS SAYS BERNHARD FURRER THE CZAR OF IKEA'S EASTERN EUROPEAN OPERATIONS ONCE THEY GET EFFICIENT THEY'LL BEAT THE HELL OUT OF ANYTHING IN THE WEST IKEA HAS HAD TO CHANGE KEY ELEMENTS OF ITS RETAILING FORMULA HERE IN THE WEST ONE SECRET OF SUCCESS HAS BEEN DEFT MARKETING AND MORE THAN 50 MILLION COPIES A YEAR OF A GLOSSY COLOR CATALOG BUT A TEST OF AN ABRIDGED VERSION IN HUNGARY HAD TO BE DROPPED WHEN IT FUELED DEMAND THAT IKEA SIMPLY COULDN'T SATISFY FOR THE SAME REASON IKEA HALTED ADVERTISING IN HUNGARY AND POLAND THE ROUGHLY 3000 PRODUCTS AVAILABLE AT THE CHAIN'S BIGGEST EASTERN EUROPEAN OUTLETS REPRESENT ONLY A QUARTER OF THE NUMBER THAT IKEA OFFERS IN THE WEST BUT THE BUDAPEST STORE STILL AVERAGES MORE THAN 40000 VISITORS A WEEK AND THE DOWNTOWN WARSAW STORE MORE THAN 30000 ABOUT DOUBLE THE NORMAL WEEKLY TRAFFIC IN A WESTERN IKEA STORE THE NEW JANKI STORE WILL OFFER NEARLY 6000 PRODUCTS AND ABUNDANT WAREHOUSE SPACE PROMISES TO EASE DELIVERIES A LOT IS RIDING ON THE JANKI PROJECT BECAUSE RECENT MARKET RESEARCH INDICATES THAT WE STILL ONLY REACH A KIND OF UPPERCLASS CLIENTELE TODAY MR MOBERG SAYS SKIMPY PURCHASING POWER THERE IS AMPLE EVIDENCE OF THE SKIMPINESS OF MOST POLES' PURCHASING POWER IKEA EXECUTIVES USE A SOFA MODEL CALLED KLIPPAN AS AN INFORMAL BENCHMARK IN MOST WESTERN MARKETS IT TAKES THE AVERAGE IKEA CUSTOMER SLIGHTLY MORE THAN A WEEK TO EARN THE KLIPPAN'S 400 PRICE IN POLAND IT TAKES ABOUT TWO MONTHS AND IN RUSSIA ABOUT 18 MONTHS THE INTENSE APPETITE FOR WESTERN GOODS DESPITE THE LACK OF CASH HAS SPAWNED UNUSUAL RETAILING PATTERNS MR MUSIOLIK SAYS MANY POLISH CUSTOMERS ARE ACCUMULATING SILVERWARE AND DINNERWARE GRADUALLY ONE SPOON OR A SINGLE TEACUP AT A TIME IT MEANS WE HAVE TO BE CAREFUL ABOUT CHANGING EXISTING PRODUCT RANGES TOO OFTEN 9306280011 930628 BUSINESS BRIEF NORTHERN TELECOM EXPECTS TO REPORT LOSS FOR SECOND QUARTER ON WEAK SALES TORONTO NORTHERN TELECOM LTD SAID IT WILL REPORT A LOSS FOR THE SECOND QUARTER BECAUSE OF LOWERTHANEXPECTED SALES AND PRICING PRESSURES ON ITS PUBLIC SWITCHING SYSTEMS THE LATE FRIDAY ANNOUNCEMENT FOLLOWING A BOARD MEETING BY THE SUPPLIER OF DIGITAL TELECOMMUNICATIONS SWITCHING SYSTEMS FOLLOWS A 27 DROP IN FIRSTQUARTER NET INCOME THAT QUARTER'S DISAPPOINTING RESULTS WERE BECAUSE OF LOWER MARGINS AND INCREASED RESEARCH AND DEVELOPMENT AND OTHER EXPENSES WHICH WEREN'T OFFSET BY EXPECTED REVENUE GROWTH REVENUES IN NORTH AMERICA AND EUROPE WITH THE EXCEPTION OF A FEW SECTORS ARE SHOWING SLOWER GROWTH THAN EXPECTED JEAN C MONTY PRESIDENT AND CHIEF EXECUTIVE SAID THE ANNOUNCEMENT CAME AFTER THE STOCK MARKET CLOSED NORTHERN TELECOM'S SHARES ROSE 375 CENTS TO 37 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEPARATELY THE COMPANY SAID IT NAMED O BRADFORD BUTLER FORMER CHAIRMAN OF PROCTER & GAMBLE CO AS CHAIRMAN OF NORTHERN TELECOM MR BUTLER 69 YEARS OLD SUCCEEDS PAUL STERN WHO RESIGNED AS CHAIRMAN AND A DIRECTOR DR STERN 54 RESIGNED AS CHIEF EXECUTIVE MARCH 1 TO ACCEPT AN APPOINTMENT AS A VISITING EXECUTIVE PROFESSOR AT THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA HE BECAME NONEXECUTIVE CHAIRMAN AND MR MONTY WAS NAMED CHIEF EXECUTIVE OFFICER DR STERN'S RESIGNATION FRIDAY AS CHAIRMAN IS PART OF AN ORDERLY TRANSITION A SPOKESMAN SAID IN THE 1992 SECOND QUARTER NORTHERN TELECOM'S NET INCOME PLUNGED BY A THIRD TO 723 MILLION OR 28 CENTS A SHARE ON LOWER REVENUE BECAUSE OF THE SALE OF SOME BUSINESSES BY ITS BRITISH UNIT AND A SLOWDOWN OF EQUIPMENT ORDERS IN THE US AND EUROPE NORTHERN TELECOM IS MAJORITY OWNED BY CANADA'S BCE INC WEAKER PERFORMANCE IN THE FIRST HALF OF 1993 AND THE OUTLOOK FOR THE REST OF THE YEAR WOULD RESULT IN FULLYEAR EARNINGS BEING SIGNIFICANTLY BELOW 1992'S RESULTS MR MONTY SAID THIS REVERSES A FORECAST BY DR STERN WHO SAID IN JANUARY THAT WE STILL EXPECT TO HAVE A RECORD YEAR IN 1993 THE PROJECTED LOSS FOR THE SECOND QUARTER IS MAINLY A REFLECTION OF RECESSIONARY PRESSURES IN THE US AND ABROAD THE SPOKESMAN SAID 9306280010 930628 INTERNATIONAL NORTH KOREA REBUFFS SEOUL ON DIRECT TALKS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA NORTH KOREA HAS ABORTED NEGOTIATIONS WITH SEOUL FOR DIRECT TALKS THE MOVE ON SATURDAY DAMPED OPTIMISM IN SEOUL THAT HAD SPRUNG FROM USNORTH KOREAN TALKS TWO WEEKS AGO AIMED AT CONTROLLING PYONGYANG'S NUCLEAR AMBITIONS IT FOLLOWED BY ONE DAY A WARNING FROM SOUTH KOREAN PRESIDENT KIM YOUNG SAM THAT THE NORTH APPEARED TO BE MOBILIZING FOR WAR MR KIM ALSO CAUTIONED THE US AGAINST BEING TOO CONCILIATORY IN A SECOND ROUND OF TALKS WITH PYONGYANG ON ITS SUSPECTED ATOMIC WEAPONS PROGRAM NORTH KOREA'S ABANDONMENT OF ATTEMPTS TO ARRANGE DIRECT TALKS ENDED A MONTH OF INDIRECT HAGGLING IN GENERAL SEOUL HAD DEMANDED LOWLEVEL DISCUSSIONS THAT WOULD HAVE GIVEN PRIORITY TO NUCLEAR ISSUES PYONGYANG INSISTED ON HIGHLEVEL TALKS LIMITED TO A PROPOSED SUMMIT MEETING ANALYSTS SAID THEY WEREN'T SURPRISED AT NORTH KOREA'S UNWILLINGNESS TO ENGAGE IN DIRECT DISCUSSIONS WITH SEOUL WHICH IT REGARDS AS A PUPPET REGIME CONTROLLED BY WASHINGTON AS LONG AS THEY'VE GOT TALKS GOING WITH THE US NORTHSOUTH DIALOGUE IS NOT IMPORTANT TO THEM SAID AN OFFICIAL AT SEOUL'S INSTITUTE FOR UNIFICATION A GOVERNMENT THINK TANK NOW INTERKOREAN RELATIONS ARE AT THEIR LOWEST LEVEL SINCE MARCH 12 WHEN PYONGYANG ANNOUNCED IT WOULD WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY THAT ANNOUNCEMENT FOLLOWED NORTH KOREA'S REFUSAL TO OPEN ITS NUCLEAR FACILITIES TO INSPECTION BY OFFICIALS OF THE INTERNATIONAL ATOMIC ENERGY COMMISSION PYONGYANG IS THOUGHT TO BE BETWEEN ONE TO FIVE YEARS AWAY FROM PRODUCING A DELIVERABLE ATOMIC BOMB FOLLOWING TALKS WITH US OFFICIALS IN NEW YORK EARLIER THIS MONTH NORTH KOREA REVERSED ITSELF SAYING IT WOULD REMAIN IN THE TREATY BUT IT WAS VAGUE ABOUT ITS WILLINGNESS TO OBLIGE THE IAEA IN RETURN THE US PLEDGED TO RESPECT THE SOVEREIGNTY OF THE PYONGYANG REGIME IT ALSO PROMISED NOT TO LAUNCH A FIRST STRIKE AGAINST THE NORTH NORTH KOREA'S NUCLEAR PROGRAM IS EXPECTED TO TOP THE AGENDA DURING PRESIDENT CLINTON'S VISIT TO SEOUL SCHEDULED FOR JULY 1011 9306280009 930628 HEARD ON THE STREET LOW VALUE PUT ON SEARS'S RETAIL GROUP BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO HOW MUCH IS THE STRUGGLING SEARS RETAIL OPERATION WORTH BY SPINNING OFF PART OF ITS FINANCIAL SERVICES BUSINESS SEARS ROEBUCK HAS FINALLY GOTTEN A CLUE FROM WALL STREET THE ANSWER NOT MUCH TAKE THE MARKET VALUE OF SEARS STOCK AND SUBTRACT THAT OF SEARS'S STAKE IN ALLSTATE INSURANCE AND DEAN WITTER DISCOVER FINANCIAL SERVICES THE MATH SUGGESTS THAT WALL STREET VALUES THE 760STORE SEARS RETAIL CHAIN ONCE THE NATION'S LARGEST RETAILER AT 455 BILLION TO 511 BILLION THAT'S MUCH LOWER THAN THE MARKET CAPITALIZATIONS OF WALMART STORES KMART AND JC PENNEY YET THERE ARE AT LONG LAST SOME SIGNS OF A REAL TURNAROUND IN SEARS'S RETAIL OPERATIONS ARTHUR C MARTINEZ RECRUITED LAST AUGUST BY SEARS TO TURN AROUND THE MERCHANDISING UNIT HAS CERTAINLY BEEN DECISIVE SO FAR HE HAS DITCHED THE UNPROFITABLE CATALOG OPERATION IMPROVED APPAREL SELECTION AND MADE KEY PERSONNEL CHANGES AMONG OTHER THINGS UNDER MR MARTINEZ THE RETAIL GROUP HAS REPORTED SOME OF ITS HEALTHIEST SALES INCREASES IN MANY YEARS IN MAY SALES AT SEARS STORES OPEN AT LEAST A YEAR ROSE 59 COMPARED WITH KMART'S 11 AND JC PENNEY'S 19 MARGO MCGLADE OF PAINEWEBBER A VETERAN RETAIL ANALYST SAYS THAT THE COMPANY IS GAINING MARKET SHARE IN WOMEN'S APPAREL ONE OF MR MARTINEZ'S KEY GOALS AS WELL AS BOOSTING OR MAINTAINING MARKET SHARE IN THE HOTLY COMPETITIVE ELECTRONICS AND HOMEIMPROVEMENT MARKETS THE LOW MARKET VALUE FOR SEARS'S RETAIL GROUP MAKES YOU THINK 'GEE WHIZ THAT'S NOT REALLY A FAIR VALUATION' SAYS WALTER LOEB RETAIL ANALYST WITH LOEB ASSOCIATES NEW YORK HE SAYS THAT THE COMPANY HAS MOVED FASTER THAN EXPECTED TO SHED THE FINANCIALSERVICES UNITS ALLOWING IT TO PARE DEBT AND FOCUS ON THE RETAILING UNIT THE LOW VALUATION SHOWS THAT INVESTORS BELIEVE SEARS STILL HAS A LONG WAY TO GO IN IMPROVING ITS RETAIL SIDE SEARS IS IN THE MIDST OF A FIVEYEAR 4 BILLION STOREREMODELING PROGRAM THE LATEST EFFORT TO IMPROVE THE MERCHANDISING BUSINESS I'M PERSONALLY IMPRESSED WITH THE URGENCY SEARS IS EXHIBITING SAYS DARREN BAGWELL ANALYST WITH SPINOFF REPORT NEW YORK BUT PEOPLE APPARENTLY AREN'T YET BUYING THE STORY ANALYSTS HAVE BEEN TRYING FOR YEARS TO VALUE THE SEARS MERCHANDISING GROUP BUT THEY COULD ONLY MAKE LOOSE ESTIMATES BECAUSE THE COMPANY'S STOCK PRICE MIXED TOGETHER THE RETAILING INSURANCE BROKERAGE AND CREDITCARD BUSINESSES THE TASK IS EASIER NOW THAT SEARS SPUN OFF IN PUBLIC OFFERINGS ABOUT 20 OF ALLSTATE AND OF DEAN WITTER DISCOVER SEARS ALSO AGREED IN MAY TO SELL PARTS OF ITS COLDWELL BANKER REALESTATE BROKERAGE UNIT THE DEAN WITTER SHARES WHICH SOLD FOR 27 EACH IN JANUARY WERE QUOTED FRIDAY AT 36 1/4 UP 1 1/8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALLSTATE'S SHARES WERE SOLD EARLIER THIS MONTH ALSO FOR 27 AND TRADED FRIDAY FOR 28 1/2 UP 3/8 ON THE BIG BOARD THAT ALLOWS ANALYSTS TO ASSIGN A MARKET VALUE TO THE STAKES OF ABOUT 80 IN ALLSTATE AND DEAN WITTER THAT SEARS STILL HOLDS ALLSTATE IS VALUED AT ABOUT 10 BILLION OR 2650 PER SEARS SHARE AND DEAN WITTER AT ABOUT 53 BILLION OR 14 PER SEARS SHARE A LITTLE GRADESCHOOL MATH SHOWS THAT WITH SEARS QUOTED AT 53 5/8 UP 5/8 IN BIG BOARD TRADING FRIDAY INVESTORS ARE VALUING THE ONCESTELLAR RETAIL UNIT AT A MERE 12 TO 1350 A SHARE THE PRICE ALSO INCLUDES SEARS'S RETAIL REAL ESTATE OPERATIONS WHICH ANALYSTS SAY THEY CAN'T VALUE SEPARATELY ANALYSTS ARE PROJECTING THAT SEARS'S RETAIL OPERATION WILL EARN ABOUT 118 A SHARE THIS YEAR SO THE RETAIL OPERATIONS ARE GOING FOR 10 TO 11 TIMES ESTIMATED 1993 EARNINGS THAT'S BELOW THE MULTIPLE OF ABOUT 13 ON COMPETITORS LIKE JC PENNEY SOME ANALYSTS FIGURE THAT SEARS HAS MORE CHANCE TO POST FAST GROWTH THAN ITS RIVALS DO JUST BECAUSE SEARS'S RETAIL OPERATIONS HAVE BEEN DEPRESSED BUT CLEARLY MANY INVESTORS REMAIN SKEPTICAL AFTER YEARS OF SEEING SEARS STUMBLE AROUND THE CHAIN HAS OFFERED FASHIONS THAT LEFT SHOPPERS YAWNING COULDN'T SEEM TO SETTLE ON A CLEAR PRICING POLICY AND SUFFERED OCCASIONAL EMBARRASSMENTS SUCH AS A SCANDAL IN ITS AUTOREPAIR OPERATION THAT'S WHY THE MARKET VALUES SEARS'S RETAIL ARM AT ONLY ABOUT 5 BILLION BY COMPARISON WALMART WHICH A FEW YEARS AGO KNOCKED SEARS OUT OF ITS SPOT AS THE NATION'S LARGEST RETAILER HAS A STOCKMARKET CAPITALIZATION OF 615 BILLION KMART CORP WITH AN 82 BILLION STOCKMARKET VALUE ALSO PASSED SEARS TO BECOME THE NO 2 RETAILER LONGTIME COMPETITOR JC PENNEY BOASTS A MARKET VALUE OF 108 BILLION SEARS'S RESTRUCTURING AND THE SIGNS OF AN IMPROVEMENT IN RETAIL HAVE HELPED THE STOCK IT WAS TRADING IN THE LOW 40S AT THE END OF LAST YEAR BUT THE STOCK HAS STALLED SINCE FEBRUARY IN THE LOW 50S INVESTORS APPARENTLY ARE WAITING TO MAKE SURE THE RETAILER PRODUCES CONSISTENT RESULTS BEFORE THEY GIVE THE STOCK ANOTHER SIGNIFICANT BOOST THE MARKET IS TELLING US THAT IT EXPECTS THE RUN IN SALES WILL COME TO AN END SOON ESPECIALLY WITH TOUGH COMPARISONS THIS FALL MS MCGLADE SAYS A SEARS REPRESENTATIVE SAYS THE COMPANY ACCOMPLISHED WHAT WE SET OUT TO DO BY SEPARATING THE VARIOUS PIECES AND LETTING THE INITIAL PUBLIC OFFERINGS ESTABLISH THE TRADING VALUES OF DEAN WITTER AND ALLSTATE THE MARKET WILL MAKE THE JUDGMENT AS TO THE VALUE OF THE VARIOUS COMPONENTS HE DECLINES TO COMMENT FURTHER INVESTORS HAVE BEEN BURNED BY SEARS BEFORE IN 1988 CHAIRMAN EDWARD A BRENNAN ANNOUNCED A MAJOR RESTRUCTURING THAT INCLUDED A PLAN TO SELL THE SEARS TOWER AND A NEW PRICING STRATEGY FOR ITS RETAIL STORES SEARS WAS NEVER ABLE TO SELL ITS HEADQUARTERS BUILDING AND THE EVERYDAY LOW PRICING PLAN DIDN'T STIR UP NEW BUSINESS PEOPLE NOW ARE CONFUSED AS TO WHAT'S REAL AND WHAT'S SMOKE IN SEARS'S PLANS ASSERTS MR BAGWELL OF SPINOFF REPORT HOWEVER PAINEWEBBER'S MS MCGLADE BELIEVES SEARS SHOULD BE ABLE TO PULL OFF A CONTINUED STRING OF SALES INCREASES SHE POINTS TO SUCH FACTORS AS THE COMPANY'S NEW ADVERTISING CAMPAIGN TO BE UNVEILED SOON AND SOME PRICE REDUCTIONS MR LOEB THE ANALYST SAYS IT WILL JUST TAKE TIME BEFORE INVESTORS REALIZE SEARS IS NOW MORE FOCUSED IT'S GOING TO BE AN OUTSTANDING RETAIL STOCK HE PREDICTS BY THE END OF THE YEAR IN FACT MR LOEB SAYS SEARS'S STOCK COULD SOAR TO 75 WHICH WOULD VALUE THE MERCHANDISING GROUP AT 33 CONTINGENT ON INVESTORS REALIZING THE VALUE IN SEARS'S RETAIL OPERATION THERE'S ALSO BEEN A BIT OF SPECULATION ABOUT WHETHER SEARS MIGHT BE AN ATTRACTIVE TAKEOVER CANDIDATE BUT MOST ANALYSTS DON'T FORESEE THAT THE OPPORTUNITY IN A TAKEOVER WOULD BE TO TURN SEARS MERCHANDISING AROUND SAYS MS MCGLADE AND NO ONE THINKS THEY'RE MORE QUALIFIED TO DO SO THAN THE TEAM ARTHUR MARTINEZ HAS PUT IN PLACE 9306280008 930628 WHAT'S NEWS BUSINESS AND FINANCE WESTINGHOUSE IS WOOING MICHAEL H JORDAN FORMER HEAD OF PEPSICO'S INTERNATIONAL OPERATIONS AS ITS NEW CHIEF EXECUTIVE THE TROUBLED MANUFACTURING AND ELECTRONICS COMPANY HASN'T REACHED A FINAL PACT AND SOME DIRECTORS ARE SAID STILL TO FAVOR INSIDER GARY CLARK PRESIDENT AND ACTING CEO A DECISION COULD BE ANNOUNCED AS SOON AS WEDNESDAY THE NEW YORK FED'S EXECUTIVE VICE PRESIDENT WILLIAM MCDONOUGH HAS EMERGED AS THE LEADING CONTENDER TO BECOME THE BANK'S PRESIDENT ELI LILLY'S BOARD FIRED CEO VAUGHN BRYSON WHOSE OUSTER WAS PLOTTED BY HIS PREDECESSOR CHAIRMAN RICHARD WOOD WHILE THE DRUG MAKER HAS HAD SOME FINANCIAL PROBLEMS WOOD APPARENTLY ACTED OUT OF RESENTMENT OF HIS SUCCESSOR'S MORE COLLEGIAL STYLE CLINTON'S ECONOMIC PLAN FACES ITS TOUGHEST TEST YET AS IT GOES TO A HOUSESENATE CONFERENCE ALTHOUGH NEITHER CHAMBER'S VERSION GOT ANY GOP VOTES ADMINISTRATION OFFICIALS AND DEMOCRATIC LEADERS REMAINED OPTIMISTIC SMITH BARNEY SHEARSON'S CEO ROBERT GREENHILL MOVED TO BUILD THE FIRM'S DEALMAKING CAPACITY BY HIRING MORGAN STANLEY'S ROBERT LESSIN AS THE HEAD OF INVESTMENT BANKING JOBBIAS SUITS WILL BE TOUGHER FOR WORKERS TO WIN IN THE WAKE OF A SUPREME COURT RULING THE DECISION SAID THAT EVEN IF AN EMPLOYER LIES IN COURT ABOUT THE CASE THAT ALONE DOESN'T ENTITLE THE WORKER TO VICTORY THE HIGH COURT DECLINED FOR THE FIFTH TIME IN RECENT YEARS TO PLACE CLEAR CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGES BUSINESS ADVOCATES VOWED TO STEP UP PRESSURE FOR FEDERAL LEGISLATION THAT WOULD PUT LIMITS ON SUCH DAMAGES BORDEN PLANS TO NAME STRIDE RITE'S CEO ERVIN SHAMES AS ITS PRESIDENT AND CHIEF OPERATING OFFICER FOODINDUSTRY WATCHERS PRAISED THE DECISION ELECTRONIC DATA SYSTEMS' CEO LESTER ALBERTHAL LAST MONTH SOLD 40 OF HIS GM STOCK LINKED TO THE COMPUTER SERVICES UNIT EVEN AS THE AUTO MAKER WAS TRYING TO GET TELECOMMUNICATIONS COMPANIES TO BUY A STAKE IN EDS EXISTINGHOME SALES JUMPED A ROBUST 46 IN MAY AS THE HOUSING RECOVERY CONTINUED TO REGAIN STEAM AMID CONTINUED LOW INTEREST RATES AND STRENGTHENING EMPLOYMENT GROWTHSPS XXX HERSHEY FOODS RELEASED A GLOOMY SECONDQUARTER EARNINGS FORECAST DRIVING ITS STOCK DOWN 2375 OR NEARLY 5 TO 47125 TO EASE THE STING OF THE FORECAST THE FIRM ALSO UNVEILED A 200 MILLION SHAREREPURCHASE PROGRAM NORTHWEST AIRLINES CONTINUED TALKS WITH ITS PILOTS UNION AS THE WINGS HOLDINGS UNIT REMAINED POISED TO FILE FOR BANKRUPTCYLAW PROTECTION IF IT CAN'T GET LABORCOST REDUCTIONS MACHINETOOL ORDERS FELL 89 IN MAY FROM APRIL DUE TO A SLOWDOWN IN PURCHASES BY AUTO MAKERS THE MAIN PROPELLANT FOR ORDERS THIS YEAR NORTHERN TELECOM WILL POST A SECONDPERIOD LOSS BECAUSE OF LOWERTHANEXPECTED SALES AND PRICING PRESSURES ON ITS PHONE SWITCHING SYSTEMS STOCKS INCHED HIGHER ON STRENGTH FROM THE BOND MARKET THE DOW JONES INDUSTRIALS ROSE 028 TO 349089 THE YIELD ON THE US LONG BOND FELL TO 670 THE DOLLAR CLOSED LOWER BONDS LEHMAN BROTHERS TREASURY INDEX 525623 UP 2067 COMMODITIES OIL 1884 A BARREL OFF 5 CENTS DOW JONES FUTURES INDEX 12027 UNCHANGED SPOT INDEX 12063 OFF 019 DOLLAR 10620 YEN OFF 253 17055 MARKS OFF 00018 9306280007 930628 WHO'S NEWS AETNA LIFE & CASUALTY CO AETNA LIFE & CASUALTY CO HARTFORD CONN JOSEPH J MISTRETTA 52 YEARS OLD WAS NAMED VICE PRESIDENT OF PROPERTY/CASUALTY FIELD OPERATIONS AT THIS INSURER MR MISTRETTA WHO HAD BEEN RESIDENT VICE PRESIDENT OF THE HARTFORD FIELD OFFICE SUCCEEDS THOMAS S CARPENTER 62 WHO WILL RETIRE THURSDAY 9306280005 930628 WHO'S NEWS AIRSENSORS INC AIRSENSORS INC CERRITOS CALIF ROBERT M STEMMLER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER HE ALSO WAS ELECTED TO THE BOARD INCREASING ITS MEMBERSHIP TO NINE MR STEMMLER WHO WAS PRESIDENT OF AIRSENSORS' IMPCO TECHNOLOGIES SUBSIDIARY SUCCEEDS BERTRAM R MARTIN WHO IS RETIRING BUT REMAINS ON THE BOARD AIRSENSORS MAKES GASEOUS FUEL EQUIPMENT THAT ALLOWS INTERNAL COMBUSTION ENGINES TO OPERATE ON CLEAN FUELS 9306280004 930628 THE SENATE'S TAX PACKAGE COMPANIES TRY TO DECIDE WHICH VERSION TO SUPPORT BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHAMPION INTERNATIONAL CORP PRAISES THE HOUSE TAX PACKAGE BUT WEYERHAEUSER CO IS ROOTING FOR THE SENATE MEASURE THE DIVERGENT VIEWS OF THE TWO WOOD PRODUCTS COMPANIES UNDERSCORE HOW THE HOUSE AND SENATE VERSIONS OF THE TAX BILL EACH CARRY DISTINCT ADVANTAGES AND DISADVANTAGES FOR THE BUSINESS COMMUNITY TENS OF MILLIONS OF DOLLARS IN COMPANY PROFITS WILL RIDE ON HOW LAWMAKERS IRON OUT THEIR DIFFERENCES OVER SINGLE PROVISIONS FOR CHAMPION THE MOST IMPORTANT ITEM IN THE LEGISLATION IS ONE THAT WOULD PROVIDE RELIEF TO COMPANIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX THE TAX IS SUPPOSED TO ENSURE THAT CORPORATIONS WITH SUBSTANTIAL INCOME CAN'T AVOID TAX LIABILITY BY USING SPECIAL EXCLUSIONS DEDUCTIONS AND CREDITS IT HAS BEEN ESPECIALLY HARD ON CAPITALINTENSIVE COMPANIES AND CRITICS ARGUE THAT IT UNFAIRLY DISCOURAGES INVESTMENT WHEN THE SENATE SCALED BACK BY ROUGHLY HALF THE 894 BILLION PROVISION THAT THE HOUSE PASSED TO LESSEN THE BITE OF THE TAX CHAMPION OFFICIALS WERE CHAGRINED WEYERHAEUSER EXECUTIVES FOR THEIR PART SAY THAT THEIR COMPANY'S BOTTOM LINE WOULD SUFFER MOST FROM A BROADBASED ENERGY TAX SUCH AS ONE APPROVED BY THE HOUSE IT WOULD BE A HUGE ANTICOMPETITIVE DRAIN ON US SAYS LARRY POLLOCK WEYERHAEUSER'S DIRECTOR OF TAXES SO WEYERHAEUSER PREFERS THE SENATE BILL WHICH WOULD SUBSTITUTE A LEVY ON JUST TRANSPORTATION FUELS ACROSS CORPORATE AMERICA THE SCENE IS THE SAME DIFFERENT FIRMS ARE LINING UP BEHIND DIFFERENT VERSIONS OF THE BILL DEPENDING ON THE DETAILS MOST IMPORTANT TO THEM IT'S VERY DIFFICULT TO SAY THAT ONE BILL OR THE OTHER IS MORE PRO OR ANTIBUSINESS EXPLAINS ALAN WILENSKY A WASHINGTON TAX ATTORNEY AND FORMERLY A TOP TREASURY OFFICIAL WHERE YOU STAND DEPENDS ON WHERE YOU SIT AS A WHOLE THE BUSINESS COMMUNITY IS SOMEWHAT CONFLICTED ADDS TIMOTHY MCCORMALLY GENERAL COUNSEL AT THE TAX EXECUTIVES INSTITUTE A WASHINGTONBASED GROUP OF CORPORATE TAX OFFICIALS IN GENERAL THE HOUSE VERSION OF THE BILL INCLUDES MANY MORE TARGETED BUSINESS BREAKS COVETED BY A VARIETY OF INDUSTRIES THE SENATE STRIPPED AWAY MANY SUCH PROVISIONS IN PART THAT'S BECAUSE SENATORS DESPERATELY NEEDED TO COME UP WITH REVENUE TO REPLACE THE ENERGY TAX PASSED BY THE HOUSE BUT THE DIFFERENCE ALSO MAY REFLECT IN PART DIFFERENT PHILOSOPHIES THE CLINTON ADMINISTRATION AND MANY HOUSE MEMBERS BELIEVE THAT THE TAX BREAKS CAN ENCOURAGE BADLY NEEDED INVESTMENT IN A WEAK RECOVERY THESE KIND OF INCENTIVES ARE ESSENTIAL TO PRODUCE JOBS SAYS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA BY CONTRAST AT LEAST SOME IN THE SENATE DISMISS THE SPECIAL PROVISIONS AS LOOPHOLES THAT ONLY ENCOURAGE TAX SHELTERS IT IS SIMPLY A GIFT IT IS NOT AN INVESTMENT INCENTIVE DEMOCRAT BILL BRADLEY OF NEW JERSEY DECLARED ON THE SENATE FLOOR LAST WEEK WHEN DISCUSSING A CERTAIN SMALLBUSINESS TAX BREAK IT IS THAT PHILOSOPHICAL DIFFERENCE THAT LEFT THE REAL ESTATE INDUSTRY CHEERING THE HOUSE AND CURSING THE SENATE THE HOUSE BILL WOULD PROVIDE SOCALLED PASSIVELOSS RELIEF VALUED AT 265 BILLION OVER FIVE YEARS FOR REAL ESTATE PROFESSIONALS IT ALSO INCLUDES A FAVORABLE DEBTRESTRUCTURING PROVISION VALUED AT 366 MILLION TO THE REAL ESTATE INDUSTRY THESE ITEMS ARE SO ATTRACTIVE FOR THE INDUSTRY THAT AFTER THE TAX BILL EMERGED FROM THE HOUSE A SHEARSON LEHMAN ANALYST ISSUED A REPORT SAYING THAT THEY HELPED TO MAKE REALESTATE STOCKS SINGULARLY ATTRACTIVE BUT THE SENATE SCALED BACK THE PASSIVELOSS RELIEF AND ELIMINATED THE DEBT PROVISION ENTIRELY THE SENATE BILL IS A SIGNIFICANT STEP BACKWARDS SAYS JAMES DIDION CHIEF EXECUTIVE OF CB COMMERCIAL REAL ESTATE GROUP IN LOS ANGELES SIMILARLY COMPANIES ENGAGED IN RESEARCH AND DEVELOPMENT FARED FAR WORSE IN THE SENATE THAT CHAMBER'S VERSION WOULD EXTEND THE RESEARCHANDDEVELOPMENT TAX CREDIT FOR ONLY ONE YEAR WHEREAS THE HOUSE BILL WOULD REINSTATE THE CREDIT PERMANENTLY AND MAKE IT RETROACTIVE TO JULY 1 1992 IN ADDITION THE SENATE LIMITED TO ONE YEAR A FORMULA FOR FAVORABLY ALLOCATING RESEARCH EXPENDITURES BETWEEN US AND FOREIGN OPERATIONS EVERYBODY AGREES R&D IS IMPORTANT BUT WHEN PUSH COMES TO SHOVE IT GETS THROWN OFF THE TABLE BECAUSE LAWMAKERS GET PRESSED FOR DOLLARS SAYS KEN KAY EXECUTIVE DIRECTOR OF THE COUNCIL ON RESEARCH AND TECHNOLOGY WHICH REPRESENTS DOZENS OF UNIVERSITIES AND COMPANIES INCLUDING MOTOROLA INC AND HEWLETTPACKARD CO ANOTHER HOUSEAPPROVED PROVISION SUPPORTED BY MANY HIGHTECH FIRMS WOULD PROVIDE CAPITALGAINS TAX RELIEF FOR INVESTORS IN SMALL BUSINESSES THE SENATE DELETED THIS ITEM AS WELL EVEN THOUGH IT WAS LARGELY THE PRODUCT OF ONE OF ITS OWN SEN DALE BUMPERS D ARK YET ANOTHER BLOW TO THE BUSINESS COMMUNITY IN THE SENATE VERSION WOULD COME FROM THE REPEAL OF A LAW THAT PROVIDES FAVORABLE TAX TREATMENT FOR TROUBLED COMPANIES THAT GIVE LENDERS STOCK FOR DEBT THIS COULD SIGNIFICANTLY IMPAIR OUR ABILITY TO RESTRUCTURE COMPANIES SAYS KENNETH MALEK A PARTNER WITH ERNST & YOUNG IN CHICAGO THE LITTLENOTICED PROVISION WHICH ISN'T IN THE HOUSE VERSION WOULD RAISE 14 BILLION OVER FIVE YEARS OF COURSE CONSISTENCY IS RARE IN POLITICS THE SENATE FOR ALL ITS TALK ABOUT CLOSING LOOPHOLES WOULD LEAVE SEVERAL TAX BREAKS FOR MULTINATIONAL COMPANIES MORE INTACT THAN WOULD THE HOUSE ONE A BREAK FOR COMPANIES DOING BUSINESS IN PUERTO RICO WAS PUSHED BY NONE OTHER THAN MR BRADLEY DESPITE THE SENATOR'S FERVOR FOR TAX REFORM HIS STATE OF NEW JERSEY IS HOME TO MANY PHARMACEUTICAL MAKERS WITH OPERATIONS IN PUERTO RICO 9306280003 930628 NORFOLK SOUTHERN CORP SEEKS BUYERS FOR 2 OF ITS TRUCKING UNIT'S DIVISIONS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL NORFOLK SOUTHERN CORP SEEKING TO REJUVENATE ITS AILING LONGHAUL TRUCKING UNIT NORTH AMERICAN VAN LINES INC SAID IT WOULD SEEK BUYERS FOR TWO OF ITS FOUR TRUCKING OPERATIONS NORFOLK SOUTHERN A NORFOLK VABASED RAILROAD AND TRUCKING COMPANY SAID IT WILL ATTEMPT TO SELL NORTH AMERICAN'S COMMERCIAL TRANSPORT DIVISION AND ITS REFRIGERATED TRANSPORT OPERATION WHICH TOGETHER REPRESENT ABOUT A THIRD OF NORTH AMERICAN'S 1992 REVENUE OF 8296 MILLION LAST YEAR NORFOLK SOUTHERN HAD REVENUE OF 466 BILLION BUT NORFOLK SOUTHERN SAID IT PLANS TO RETAIN ITS TWO LARGER TRUCK DIVISIONS THAT ARE INVOLVED IN THE TRANSPORTATION OF HOUSEHOLD GOODS AND SPECIALIZED COMMODITIES ANALYSTS SAID THE PROPOSED RESTRUCTURING COULD HELP REVERSE THE DISAPPOINTING PERFORMANCE OF NORTH AMERICAN SINCE ITS ACQUISITION BY NORFOLK SOUTHERN FROM PEPSICO INC IN 1985 AT THE VERY LEAST THIS NARROWER FOCUS WILL HOPEFULLY LEAD TO A QUICK IMPROVEMENT IN NORTH AMERICAN'S BOTTOM LINE SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP ACCORDING TO NORFOLK SOUTHERN'S 1992 ANNUAL REPORT THE COMPANY'S TRUCKING OPERATIONS HAD A LOSS OF 397 MILLION LAST YEAR COMPARED WITH OPERATING PROFIT OF 200000 IN 1991 AND AN OPERATING LOSS OF 85 MILLION IN 1990 THE CHIEF PROBLEM AT NORTH AMERICAN HAS BEEN THE COMMERCIAL TRANSPORT DIVISION WHICH PROVIDES TRUCKLOAD GENERALFREIGHT TRANSPORTATION AN INTENSELY COMPETITIVE PART OF THE TRUCKING INDUSTRY THE DIVISION HAS BEEN MARKED BY RATE PRESSURES A SHORTAGE OF QUALIFIED TRUCK DRIVERS AND UNUSUALLY HIGH CASUALTY CLAIMS A NORTH AMERICAN SPOKESMAN SAID THE COMMERCIAL TRANSPORT DIVISION IS UNPROFITABLE BUT DIDN'T ELABORATE THE DIVISION HAD 1992 REVENUE OF 2183 MILLION THE SPOKESMAN SAID THE COMPANY'S TRANSTAR INC SUBSIDIARY WHICH SPECIALIZES IN REFRIGERATED TRANSPORTATION AND ALSO IS BEING OFFERED FOR SALE IS NOT NEARLY AS PROFITABLE AS WE WOULD LIKE IT TO BE TRANSTAR HAD 1992 REVENUE OF 524 MILLION ON THE OTHER HAND THE TWO UNITS THE COMPANY DECIDED TO RETAIN ITS RELOCATION SERVICES DIVISION WHICH IS INVOLVED IN THE MOVEMENT OF HOUSEHOLD GOODS AND ITS HIGHVALUE PRODUCTS DIVISION WHICH TRANSPORTS HIGHTECH EQUIPMENT AND TRADESHOW AND ARTEXHIBIT ITEMS ARE PROFITABLE AND LEADERS IN THEIR FIELDS THE RELOCATION SERVICES DIVISION HAD 1992 REVENUE OF 3252 MILLION THE HIGHVALUE PRODUCTS DIVISION HAD 1992 REVENUE OF 2337 MILLION IN A RECENT INTERVIEW R ALAN BROGAN A NORFOLK SOUTHERN EXECUTIVE VICE PRESIDENT WHO WAS GIVEN THE RESPONSIBILITY TO REVAMP NORTH AMERICAN SAID THE RELOCATION SERVICES AND HIGHVALUE PRODUCTS DIVISIONS HAVE ADEQUATE RETURNS THAT MEET OUR CRITERIA AND I THINK WE WILL DO WELL WITH THEM BUT THE TRUCKLOAD PART OF OUR BUSINESS IS A TOTALLY DIFFERENT SITUATION AND WE KNOW CHANGE IS NECESSARY THE NORTH AMERICAN SPOKESMAN DECLINED TO SPECULATE ON HOW MUCH NORFOLK SOUTHERN WOULD HOPE TO GAIN FROM SALE OF THE DIVISIONS THE COMMERCIAL TRANSPORT DIVISION OPERATES 1150 POWER UNITS AND ABOUT 5000 TRAILERS WHILE TRANSTAR HAS 512 POWER UNITS AND 755 REFRIGERATED TRAILERS BURTON STRAUSS JR AN ANALYST AT SHEARSON LEHMAN BROTHERS SAID HE EXPECTS THAT TRANSTAR WOULD BE SOLD AS AN OPERATING ENTITY TO ANOTHER COMPANY BUT HE SAID THE PROBABILITY IS THAT COMMERCIAL TRANSPORT WILL BE LIQUIDATED AND ITS ASSETS SOLD I DON'T THINK A TRUCKING COMPANY OF A COUPLE HUNDRED MILLION IN ANNUAL REVENUES IS NEEDED BY ANYONE IN THE BUSINESS A SPOKESMAN FOR NORTH AMERICAN DECLINED TO COMMENT IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE NORFOLK SOUTHERN CLOSED AT 6375 UP 25 CENTS 9306280001 930628 EVERGREEN BANCORPKEYCORP GLENS FALLS NY EVERGREEN BANCORP'S BOARD SAID IT ISN'T IN A POSITION TO REPLY TO KEYCORP'S OFFER TO PURCHASE EVERGREEN AS PREVIOUSLY REPORTED KEYCORP SUBMITTED AN UNSOLICITED OFFER TO PURCHASE EVERGREEN LAST WEEK AND SAID ITS OFFER FOR UNDISCLOSED TERMS EXPIRES WEDNESDAY EVERGREEN SAID IT IS IN THE MIDST OF SEVERAL STUDIES TO DEFINE AND EVALUATE HOW BEST TO MAXIMIZE SHAREHOLDER VALUE OVER THE LONG TERM 9306280162 930507 TECHNOLOGY SIXTH PATIENT OF DENTIST WITH AIDS TESTS POSITIVE ATLANTA A SIXTH PATIENT OF A FLORIDA DENTIST WHO DIED OF AIDS HAS TESTED POSITIVE FOR HIV THE HUMAN IMMUNODEFICIENCY VIRUS THAT CAUSES AIDS ACCORDING TO A REPORT BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE PATIENT A TEENAGE GIRL LEARNED SHE WAS HIV POSITIVE WHEN SHE WAS TESTED AS AN APPLICANT FOR MILITARY SERVICE IN LATE 1992 THE CDC SAID SHE WAS A PATIENT OF DAVID ACER WHO DIED OF AIDS IN 1990 FIVE OTHER PATIENTS OF DR ACER HAVE TESTED POSITIVE FOR HIV WITH ONE KIMBERLY BERGALIS DYING OF AIDS IN 1991 THE LATEST PATIENT HAD NO OTHER EXPOSURE TO HIV THE CDC SAID IN ITS REPORT AND LIKE THE OTHER FIVE CASES FEDERAL AUTHORITIES SAY THEY DON'T KNOW HOW THIS LATEST TRANSMISSION OF HIV OCCURRED THIS ADDITIONAL CASE DOESN'T GIVE US ANY MORE CLUES SAID HAROLD JAFFEE DIRECTOR OF THE CDC'S DIVISION OF HIV/AIDS DR JAFFE SAID THERE MAY STILL BE PATIENTS OF DR ACER WHO HAVE NOT BEEN TESTED FOR THE AIDS VIRUS THE CDC ESTIMATES THAT DR ACER HAD 2000 PATIENTS 1100 TOLD HEALTH OFFICIALS THEY HAVE BEEN TESTED HE SAID THE CDC SAID THE ACER CASES REMAIN THE ONLY DOCUMENTED INSTANCE OF HIV TRANSMISSION FROM A HEALTHCARE WORKER TO PATIENTS SEE RELATED LETTER LETTERS TO THE EDITOR A CLOSER LOOK AT AIDS DENTIST WSJ JUNE 28 1993 9305070159 YY93 MM06 9306280069 930527 COUNTERPOINT LESSONS FROM THE SAN DIEGO SPRAWL BY PETER NAVARRO SAN DIEGO HERE'S A MULTIPLE CHOICE QUESTION FOR YOU GROWTH MANAGEMENT IS A THE REVENGE OF THE GNATCATCHER B AN ANTIBUSINESS REGULATORY TRAP THAT DRIVES UP HOUSING PRICES AND DESTROYS JOBS OR C A USEFUL PLANNING TOOL THAT FOSTERS A PROBUSINESS CLIMATE IF YOU ANSWERED C GO ON TO THE NEXT ARTICLE IF YOU ANSWERED A OR B READ ON BECAUSE GROWTH MANAGEMENT HAS SHORTSIGHTEDLY BECOME A SACRIFICIAL LAMB OF THE NATION'S CURRENT ECONOMIC MALAISE THE BAD RAP THAT GROWTH MANAGEMENT RECEIVES FROM MANY BUSINESS PEOPLE AND CONSERVATIVES ARISES OVER A CONFUSION BETWEEN IT AND MORE PROBLEMATIC GROWTH CONTROLS GROWTH CONTROLS EMERGED IN THE 1970S IN RESPONSE TO SUBURBAN SPRAWL SUCH FIRST GENERATION CONTROLS TYPICALLY ENTAILED RESIDENTIAL BUILDING CAPS IN SMALL SUBURBS AND THE CLASSICAL CRITIQUE IS LEGITIMATE BUILDING CAPS RESTRICT HOUSING SUPPLY DRIVE UP HOUSING PRICES PUSH GROWTH FURTHER INTO THE SUBURBS AND IRONICALLY CREATE MORE SPRAWL HOWEVER OUT OF THESE CRITICISMS HAS EMERGED A SECOND GENERATION GROWTH MANAGEMENT APPROACH THAT INCLUDES THESE THREE STEPS FIRST DEFINE WHERE DEVELOPMENT SHALL NOT OCCUR SO AS TO PROTECT ENVIRONMENTALLY SENSITIVE LANDS PROVIDE OPEN SPACE AND DIRECT DEVELOPMENT TO AREAS WHERE IT CAN BE MOST EFFICIENTLY SERVED BY MASS TRANSIT SECOND ENSURE THAT POLICE SCHOOLS AND OTHER FACILITIES ARE BUILT AT THE SAME TIME AS THE SUBDIVISIONS OFFICE BUILDINGS AND INDUSTRIAL PARKS FINALLY REQUIRE DEVELOPERS TO PAY FOR FACILITIES VARIATIONS ON THIS APPROACH ARE BEING USED THROUGHOUT THE COUNTRY FROM FLORIDA'S PIONEERING 1985 GROWTH MANAGEMENT ACT TO ESCONDIDO CALIF'S COMPREHENSIVE GENERAL PLAN THE FAILURE TO EMBRACE THESE ELEMENTS OF GROWTH MANAGEMENT FOSTERS AN ANTIBUSINESS CLIMATE HERE'S WHY WITH EXAMPLES FROM MY SPRAWLING CORNER OF THE COUNTRY SAN DIEGO TRAFFIC AND AIR POLLUTION IT'S OBVIOUS THAT TRAFFIC CONGESTION SIGNIFICANTLY RAISES BOTH LABOR AND ENERGY COSTS BILLIONS A YEAR NATIONWIDE BUT GRIDLOCK ALSO BEGETS ONEROUS AIR POLLUTION REGULATIONS THAT CAN DRIVE BUSINESS OUT OF AN AREA CASE IN POINT SAN DIEGO'S HIGHTECH EXECUTIVES ARE THREATENING RELOCATION OVER A PROPOSAL TO IMPOSE MANDATORY CARPOOLING STEEP PARKING FEES AND STIFF PENALTIES FOR FIRMS THAT DON'T MEET QUOTAS REGULATIONS MORE SUITED FOR 9 TO 5 BANKERS THAN 16HOURADAY RESEARCHERS WATER AND SEWERS BUSINESSES THAT RELY SIGNIFICANTLY ON A LOWCOST RELIABLE SOURCE OF WATER WON'T STAY IF POPULATION GROWTH OUTSTRIPS THE WATER SUPPLY FOR EXAMPLE ALLIANCE PHARMACEUTICALS ONE OF SAN DIEGO'S LEADING BIOTECH FIRMS PLANS TO MANUFACTURE A BLOOD SUBSTITUTE BUT WITHOUT CITY WATER GUARANTEES IT PROBABLY WILL FLEE TO WETTER PASTURES SIMILARLY DURING THE AMERICA'S CUP SAN DIEGO'S SEWAGE SYSTEM SUFFERED A GIGANTIC SPILL THE DEFINITIVE EDITORIAL CARTOON HAD SKIPPER DENNIS CONNER ROUNDING A BUOY HOLDING HIS NOSE WITH THE CAPTION SAN DIEGO WHERE THE AFFLUENT MEETS THE EFFLUENT THAT WAS FUNNY THE SEVERE NEGATIVE IMPACT ON TOURISM AND LOCAL BEACH BUSINESS WAS NOT CRIME AND PUNISHMENT AFTER A DECADE OF UNMANAGED GROWTH SAN DIEGO HAS THE MOST OVERCROWDED COURTS AND JAILS IN THE COUNTRY AND THE FEWEST COPS PER CAPITA OF ANY MAJOR CITY THE RESULTING LAWLESSNESS HAS PROVOKED DARING JEWELRY STORE ROBBERIES IN UPSCALE LA JOLLA GANG WARS LITERALLY ON MISSION BEACH AND THE RANSACKING OF MIDDLECLASS SUBURBAN HOMES EVEN THE SHERIFF'S OWN HOUSE WAS RECENTLY BURGLARIZED IF CURRENT TRENDS CONTINUE IT WON'T BE JUST TOURISTS STAYING AWAY FROM SAN DIEGO IT WILL BE CORPORATE EXECUTIVES AND UNIVERSITY SCIENTISTS SKILLED LABOR A WELLTRAINED WORK FORCE IS A CITY'S MOST IMPORTANT ASSET TO ATTRACT BUSINESS HOWEVER IN 1987 THE CALIFORNIA BUILDING INDUSTRY SUCCESSFULLY LOBBIED THE STATE LEGISLATURE TO SEVERELY LIMIT ITS OBLIGATION TO PAY FOR SCHOOLS THE RESULTING OVERCROWDING HAS PLAYED A KEY ROLE IN REDUCING STUDENT PERFORMANCE THE TAX BURDEN IN SAN DIEGO IT COSTS MORE THAN THREE TIMES AS MUCH TO PROVIDE KEY INFRASTRUCTURE TO NEWCOMERS AS TO EXISTING RESIDENTS WHEN DEVELOPERS DON'T BEAR THEIR FAIR SHARE BUSINESSES PICK UP THE TAB THROUGH HIGHER TAXES AND FEES IN ONE YEAR ALONE SAN DIEGO QUADRUPLED THE SMALL BUSINESS LICENSE FEE IF UNMANAGED GROWTH IS BAD FOR BUSINESS WHY IS IT SO PREVALENT ONE PROBLEM DEVELOPMENT INDUSTRY PROPAGANDA SCARES VOTERS INTO FALSELY BELIEVING GROWTH MANAGEMENT INCREASES HOUSING PRICES AND REDUCES ECONOMIC GROWTH IN FACT TWO OF THE MOST COMPREHENSIVE STUDIES TO DATE BY JOHN LANDIS FROM UCBERKELEY AND HARVEY MOLOTCH OF UCSANTA BARBARA HAVE FOUND NO STATISTICAL BASIS FOR THESE ARGUMENTS THE BIGGER PROBLEM DEVELOPERS LARGELY FINANCE LOCAL POLITICS HERE I OFFER MY PERSONAL EXPERIENCE LAST YEAR I RAN FOR SAN DIEGO MAYOR LARGELY ON A GROWTH MANAGEMENT PLATFORM I ENTERED A CROWDED FIELD AS A VIRTUAL UNKNOWN AND RAN AWAY WITH THE PRIMARY HOWEVER DURING THE GENERAL ELECTION THE DEVELOPMENT INDUSTRY HEAVILY FUNDED MY OPPONENT WHO RAN SLICK TV ADS ATTACKING MY POSITION ON GROWTH MANAGEMENT AS ANTIBUSINESS OUTSPENT NEARLY TWO TO ONE I LOST A SQUEAKER 52 TO 48 NOW IN SAN DIEGO AS IN OTHER CITIES THROUGHOUT THE COUNTRY GROWTH MANAGEMENT IS BEING OFFERED UP AS A SACRIFICIAL LAMB TO SOLVE OUR ECONOMIC WOES FOR EXAMPLE ONE OF THE NEW MAYOR'S FIRST VOTES WAS FOR WHAT EVEN THE BUSINESS PRESS CALLED THE BIGGEST COMMERCIAL SUBURBAN SPRAWL PROJECT THIS IN A TOWN WITH AN OFFICE VACANCY RATE OVER 20 THE MAYOR HAS ALSO PROPOSED A TAX HIKE ON OUR SLUMPING HOTEL INDUSTRY TO PAY FOR MORE POLICE TO MEET GROWTH NEEDSEVEN AS SHE ABANDONED A KEY CAMPAIGN PROMISE TO MAKE DEVELOPERS PAY FOR SEVERAL NEW POLICE STATIONS AND HER CHIEF POLITICAL ADVISER IS WORKING WITH A LARGE DEVELOPER ON A JUNE 1994 BALLOT MEASURE TO ALLOW SPRAWLING SUBDIVISIONS IN ONE OF THE CITY'S LAST REMAINING OPEN SPACES MEANWHILE SAN DIEGO'S TOURIST INDUSTRY STAGNATES DOWNTOWN WITHERS OVERWHELMED BY CRIME AND SUCKED DRY BY SUBURBAN SPRAWL BUSINESSES FLEE THE AREA AND TRAFFIC WATER AND OTHER GROWTHRELATED PROBLEMS ARE IGNORED MY BOTTOM LINE UNMANAGED GROWTH IS A WELFARE PROGRAM FOR LAND SPECULATORS AND DEVELOPERS THAT CREATES SPRAWL FOSTERS AN ANTIBUSINESS CLIMATE AND ENRICHES THE FEW AT THE EXPENSE OF THE MANY MANAGED GROWTH IS A PROBUSINESS PLANNING TOOL THAT PROMOTES ECONOMIC DEVELOPMENT AND PROTECTS THE QUALITY OF LIFE MR NAVARRO IS AN ASSOCIATE PROFESSOR OF BUSINESS AND ECONOMICS AT THE GRADUATE SCHOOL OF MANAGEMENT UNIVERSITY OF CALIFORNIAIRVINE SEE RELATED LETTERS LETTERS TO THE EDITOR SAME OLD VINO IN A NEW BOTTLE WSJ JUNE 28 1993 9305270011 YY93 MM06 9306250176 930625 WORLD MARKETS TOKYO STOCK PRICES RISE BUT POLITICAL JITTERS KEEP VOLUME THIN SHARES SLIP IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES ROSE BROADLY THURSDAY IN TOKYO BUT VOLUME CONTINUED TO BE THIN AS THE JAPANESE POLITICAL SITUATION REMAINED UNSETTLED LONDON EQUITIES SLIPPED THOUGH NOT AS MUCH AS EXPECTED IN THE WAKE OF WALL STREET'S DECLINES FRANKFURT SHARES FELL AS A CONSOLIDATION CONTINUED FOR A SECOND DAY IN PARIS RATECUT FEVER HEATED UP PRICES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10478 UP 065 REFLECTING INCREASES IN ASIA/PACIFIC AND AMERICAN MARKETS AND A DROP IN EUROPEAN MARKETS TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11213 UP 231 OR 21 WITH YELLOW FREIGHT OF THE US POSTING A 65 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 12365 DOWN 680 OR 52 WITH ASIATIC OF MALAYSIA SLIDING 18 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 4578 POINTS WEDNESDAY GAINED 19255 OR ABOUT 1 TO 1968507 ON FRIDAY THE NIKKEI FELL 8884 POINTS TO CLOSE THE MORNING SESSION AT 1959623 FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES LITTLE CHANGED FROM 2447 MILLION SHARES A DAY EARLIER ADVANCES OUTPACED DECLINES 868179 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 701 POINTS WEDNESDAY RALLIED 2169 OR 14 TO 158408 THE NIKKEI TRADED IN A TIGHT RANGE OF 22819 POINTS AS JAPANESE POLITICAL UNCERTAINTIES DOMINATED A MARKET WHERE MANY PLAYERS SAT ON THE SIDELINES IN LIGHT OF THE SPLINTERING OF THE RULING LIBERAL DEMOCRATIC PARTY INVESTORS WERE LOOKING AHEAD TO SUNDAY BALLOTING FOR THE TOKYO METROPOLITAN ASSEMBLY TO FORESHADOW HOW THE NATION WILL VOTE IN JULY 18 ELECTIONS FOR THE LOWER HOUSE OF THE DIET OR PARLIAMENT LDP LOSSES AT THE POLLS COULD WEAKEN STOCK MARKET SENTIMENT A BIT AS MANY INVESTORS ARE COMFORTABLE WITH THE STATUS QUO SHARE PRICES THURSDAY JUMPED IN THE EARLY MORNING ON STRONG BUYING BY JAPANESE PUBLIC PENSION FUNDS AND SPENT THE REST OF THE DAY WAFFLING AT HIGHER LEVELS SELLING BY BASKET ARBITRAGERS WHICH PROVIDED THE FUEL FOR LAST MONDAY'S MARKET PLUNGE APPARENTLY STOPPED THE BANKING SECTOR WAS THE SESSION'S LEADING PERCENTAGE GAINER MINING STOCKS ROSE ON A GOLD PRICE JUMP IN PRECIOUSMETALS MARKETS EXPORTERS WERE MIXED AS THE JAPANESE YEN STRENGTHENED AGAINST THE US DOLLAR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 60 POINTS TO 28947 THE FT 30STOCK INDEX FELL 65 POINTS TO 22693 VOLUME WAS 5172 MILLION SHARES COMPARED WITH 6033 MILLION SHARES A DAY EARLIER IN LIGHT OF WALL STREET'S SHARP DECLINE A DAY EARLIER LONDON INVESTORS WERE PLEASED THAT THE MARKET HELP UP AS WELL AS IT DID IN THE CONSOLIDATION THE SESSION WAS GENERALLY FEATURELESS WITHOUT ANY NEW ECONOMIC DATA AND WITH FEW COMPANIES REPORTING FINANCIAL RESULTS PARTICIPANTS SAID THE LONDON BOURSE SEEMS TO BE GENERALLY LESS RELIANT ON THE NEW YORK MARKET FOR DIRECTION WHILE THE US ECONOMY STRONGLY AFFECTS THAT IN BRITAIN LONDON'S LINKS WITH EUROPEAN MARKETS AND CURRENICES HAVE BECOME STRONGER IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1310 POINTS TO 168629 NEAR THE INTRADAY LOW OF 168517 PRICES WHICH BEGAN SLIPPING WEDNESDAY AFTER THE DAX BROKE ABOVE 1700 COULDN'T BE SUSTAINED AT THAT LEVEL WITHOUT FUNDAMENTAL REASONS TO KEEP THEM THERE SUCH AS IMPROVEMENTS IN THE WEAK GERMAN ECONOMY AND THE HIGH BUDGET DEFICIT EXPECTATIONS FOR A GERMAN INTERESTRATE REDUCTION NEXT WEEK WERE WANING YESTERDAY SIX OF THE DAX STOCKS ADVANCED AND 23 RETREATED CHEMICAL SHARES OUTPACED THE BROADER MARKET BECAUSE OF THE STRONG DOLLAR AND ATTRACTIVE DIVIDEND YIELDS WHILE BANKING STOCKS TOOK A BEATING AS INVESTORS ROTATED SECTORS IN PARIS STOCKS RALLIED 11 HELPED BY TECHNICAL FACTORS AND OPTIMISM THAT THE PACE OF REDUCTIONS IN EUROPEAN INTEREST RATES MIGHT QUICKEN BUYING HELD SWAY AFTER A MEETING WAS SCHEDULED FOR TODAY BETWEEN FRENCH AND GERMAN MONETARY AUTHORITIES ON COORDINATING EUROPEAN RATE CUTS AND PRICES CONTINUED TO RISE EVEN AFTER THE MEETING WAS POSTPONED YESTERDAY ALSO WAS THE FIRST DAY OF THE JULY TRADING ACCOUNT AND PLAYERS TOOK FRESH POSITIONS LIFTING PRICES DOLLARSENSITIVE STOCKS SUCH AS CONSTRUCTION MATERIALS AND CEMENT PRODUCERS CONTINUING TO BENEFIT FROM THE US CURRENCY'S RECENT SURGE AND RESILIENCE LED THE BOURSE'S GAINERS MILAN SHARES FELL AS SELECTIVE PROFITTAKING SET IN FOLLOWING SEVERAL DAYS OF GAINS AND AS PROSPECTS OF AN EARLY LABOR ACCORD FADED ITALIAN LABOR MINISTER GINO GIUGNI SAID HE SAW A HIGH RISK OF FAILURE IN TALKS INVOLVING EMPLOYERS UNIONS AND THE GOVERNMENT ON A NEW SYSTEM OF COLLECTIVE BARGAINING AGREEMENTS TO HELP HOLD LABOR COSTS DOWN IN MADRID EQUITIES FELL MODESTLY ACROSS THE BOARD DEPRESSED BY THE LACK OF A SPANISH INTERESTRATE CUT THIS WEEK AND SOME POLITICAL UNCERTAINTY AFTER FAILURE TO PRODUCE AN AGREEMENT ON A COALITION GOVERNMENT IN STOCKHOLM FOLLOWING A WEEK OPENING STOCKS ADVANCED AFTER SWEDISH INTEREST RATES FELL THE SWEDISH KRONA CURRENCY STABILIZED AND THE ROBUST DOLLAR FAVORED SWEDISH EXPORTERS ZURICH PRICES ROSE AS SWISS AND FOREIGN INVESTORS BOUGHT BLUE CHIPS AND SOME PROFITS TAKEN LATER IN THE SESSION WERE TURNED RIGHT BACK INTO PURCHASES OF MULTINATIONALS FINANCIAL STOCKS ROSE ON SIGNS OF FURTHER DECLINES IN EUROPEAN INTEREST RATES SYDNEY SHARE PRICES HAD A MIXED PERFORMANCE PULLED IN OPPOSITE DIRECTIONS BY A STRONGER GOLD PRICE AND WEAKER US SHARES SINGAPORE STOCKS SLUMPED 11 KNOCKED DOWN BY A WAVE OF SELLING STEMMING PARTLY FROM A US NEWS REPORT ABOUT TENSIONS AT THE IRANIRAQ BORDER MANILA STOCKS FELL AS THE MARKET'S DOWNWARD TREND CONTINUED SEOUL PRICES EDGED UP MASKING STRONG ACTIVITY IN SMALLMANUFACTURING ISSUES WHILE OVERALL MOMENTUM RESULTED FROM BUSINESSES' POSITIVE PROSPECTS AND UNREALIZED GAINS FROM REAL ESTATE AS WELL AS SPECULATIVE BUYING 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 9306250175 930625 LAW LEGAL BEAT SKADDEN ARPS ACCUSES DEFENDANT IN LIBEL CASE OF STEALING RECORDS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL IN A BIZARRE TALE OF LITIGATION INTRIGUE SKADDEN ARPS SLATE MEAGHER & FLOM HAS ACCUSED A COURT OPPONENT OF TRICKING A PARALEGAL INTO STEALING CONFIDENTIAL DOCUMENTS FROM THE LAW FIRM THE ALLEGATION COMES IN A LIBEL CASE IN WHICH SKADDEN ARPS REPRESENTS TEREX CORP A US COMPANY ACCUSED IN A NEWSPAPER ARTICLE OF SUPPLYING IRAQ WITH MISSILELAUNCHING EQUIPMENT THE HEAVYEQUIPMENT COMPANY HAS SUED THE AUTHOR OF THE NEW YORK TIMES STORY SEYMOUR HERSH AND ONE OF HIS SOURCES A WASHINGTON DC BUSINESSMAN NAMED RICHARD FUISZ IN COURT DOCUMENTS TEREX ALLEGED THAT DR FUISZ OBTAINED HIGHLY CONFIDENTIAL SKADDEN ARPS BILLING RECORDS AFTER HIS SON JOHN FUISZ DUPED THE PARALEGAL A COLLEGE FRIEND JONATHAN LERNER A SKADDEN ARPS LAWYER SAID THAT ACCESS TO THE BILLING RECORDS WHICH IDENTIFIED POTENTIAL WITNESSES AND OTHERS INTERVIEWED BY LAWYERS WORKING ON THE CASE COULD GIVE DR FUISZ AN UNFAIR STRATEGIC ADVANTAGE AT TRIAL THE LAW FIRM HAS ASKED THE JUDGE TO ISSUE A DEFAULT JUDGMENT AGAINST DR FUISZ IN THE LIBEL CASE BECAUSE OF THE ALLEGED MISCONDUCT MR HERSH ISN'T INVOLVED IN SKADDEN ARPS'S ACCUSATION OF PURLOINED DOCUMENTS MR LERNER SAID THE FIRM ALSO HAS ASKED PROSECUTORS TO INVESTIGATE WHETHER ANY CRIMINAL CHARGES CAN BE FILED IN CONNECTION WITH THE ALLEGED THEFT THE COMPUTERIZED BILLING INFORMATION PROVIDED A ROADMAP OF COUNSEL'S ACTIVITIES IN ITS REPRESENTATION OF TEREX SKADDEN ARPS SAID IN DOCUMENTS FILED IN FEDERAL COURT IN WASHINGTON THOUGH THE LIBEL SUIT WAS BROUGHT IN APRIL 1992 SKADDEN DIDN'T LEARN ABOUT THE BILLING RECORDS UNTIL JANUARY WHEN COPIES WERE TURNED OVER BY DR FUISZ AS PART OF PRETRIAL INFORMATION GATHERING ACCORDING TO TEREX JOHN FUISZ GOT THE RECORDS BY TELLING THE PARALEGAL THAT HIS FATHER HAD BUSINESS DEALINGS WITH TEREX AND WANTED TO KNOW WHO WAS PAYING THE COMPANY'S LEGAL FEES THE PARALEGAL PETER GHAVAMI SAID IN A SWORN STATEMENT THAT HE THEN OBTAINED THE RECORDS FROM SKADDEN ARPS'S BILLING DEPARTMENT AT HIS FRIEND'S REQUEST HE SAID THAT A COUPLE OF MONTHS AFTER HE GAVE THE RECORDS TO JOHN FUISZ FUISZ THEN TOLD ME THAT HIS FATHER WAS IN LITIGATION AGAINST TEREX AND THAT SKADDEN ARPS WAS REPRESENTING TEREX IN THAT ACTION AT THIS TIME I UNDERSTOOD THAT I HAD BEEN DUPED DR FUISZ DOESN'T DISPUTE THAT HE RECEIVED THE RECORDS BUT HE SAID IN COURT DOCUMENTS THAT THE PARALEGAL GAVE THEM TO HIS SON AFTER STEALING THE DOCUMENTS FROM SKADDEN OF HIS OWN FREE WILL IN A COURT FILING DR FUISZ ALSO SAID THAT MR GHAVAMI'S SWORN STATEMENT ISN'T CREDIBLE BECAUSE HE WAS UNDOUBTEDLY FACED WITH THE PROSPECT THAT SKADDEN MIGHT BLACKBALL HIS CAREER PROSPECTS AND POTENTIALLY REFER HIM TO LAW ENFORCEMENT AUTHORITIES DR FUISZ'S SON AN ATTORNEY IN WASHINGTON SAID IN SWORN PRETRIAL TESTIMONY THAT HE HADN'T ASKED MR GHAVAMI FOR THE DOCUMENTS SKADDEN ARPS TERMINATED ITS DEALINGS WITH MR GHAVAMI AFTER LEARNING THAT THE BILLING RECORDS HAD BEEN TAKEN HE HASN'T BEEN CHARGED WITH ANY WRONGDOING TEREX SUED FOR LIBEL AFTER MR HERSH REPORTED CLAIMS BY DR FUISZ THAT TEREX IN 1987 WAS BUILDING VEHICLES AT A SCOTLAND PLANT TO BE SENT TO IRAQ FOR CONVERSION INTO SCUD MISSILE LAUNCHERS THE GREEN BAY WIS COMPANY SAYS IT NEVER SUPPLIED SUCH VEHICLES TO IRAQ THE COMPANY CLAIMS DR FUISZ WAS CARRYING OUT A VENDETTA AGAINST IT FOR NOT JOINING HIM IN A MIDDLE EASTERN BUSINESS VENTURE IN THE LATE 1980S DR FUISZ'S ATTORNEYS SAID THEIR CLIENT HAD NO REASON TO PURSUE A SMEAR CAMPAIGN IT REALLY IS A SIDE SHOW SAID ANDREW MARKS AN ATTORNEY FOR DR FUISZ AT WASHINGTON LAW FIRM CROWELL & MORING AS UNUSUAL AS IT IS THAT OUR GUY ENDED UP WITH THEIR BILLING RECORDS THEY CAN'T CLAIM THAT IT IMPLICATES HIM EVEN IF THE BILLING RECORDS WERE OBTAINED IMPROPERLY TEREX HASN'T SHOWN HOW ITS LIBEL CASE WOULD BE HURT DR FUISZ'S ATTORNEYS SAID IN A COURT FILING LEE LEVINE AN ATTORNEY FOR MR HERSH AT WASHINGTON LAW FIRM ROSS DIXON & MASBACK SAID MR HERSH HAS ASKED THE COURT TO DISMISS THE LIBEL CASE AGAINST HIM BECAUSE HE WAS REPORTING ON CONGRESSIONAL INVESTIGATIONS WHICH WOULD BE PROTECTED FROM A LIBEL ACTION DR FUISZ'S ATTORNEYS SAID THEIR CLIENT DIDN'T COMMIT LIBEL HE HAD NO MOTIVE TO BADMOUTH THEM SAID JOSEPH ONEK AN ATTORNEY FOR DR FUISZ AT CROWELL & MORING DR FUISZ SAID IN AN INTERVIEW I STAND BY EVERYTHING I SAID BECAUSE THAT'S WHAT I SAW AND THAT'S WHAT I HEARD AT THE TEREX PLANT IN SCOTLAND FLORIDA ADOPTED RULES REQUIRING LAWYERS TO REPORT THEIR PRO BONO LEGAL ACTIVITIES EVERY YEAR TO THE STATE BAR AND MAKING SUCH REPORTS AVAILABLE TO THE PUBLIC THE REPORTING AND PUBLIC DISCLOSURE REQUIREMENTS ADOPTED BY THE FLORIDA SUPREME COURT THIS WEEK AFTER A FOURYEAR DEBATE ARE BELIEVED TO BE THE FIRST FOR ANY MANDATORY STATE BAR IN THE COUNTRY THE FLORIDA BAR HAS ABOUT 20000 RESIDENT MEMBERS PROPONENTS EXPECT THE RULES WILL INCREASE THE AVAILABILITY OF LEGAL SERVICES TO THE STATE'S POOR THE RULES INCLUDE A RECOMMENDATION THAT LAWYERS PROVIDE AT LEAST 20 HOURS OF FREE LEGAL SERVICE EVERY YEAR ALTHOUGH THAT TARGET ISN'T MANDATORY PROPONENTS SAY MANY LAWYERS WILL FEEL OBLIGED TO COMPLY BECAUSE OF THE PUBLIC REPORTING REQUIREMENT I BELIEVE THIS IS THE FIRST TIME THAT A COURT HAS COUPLED A STATEMENT OF EXPECTATION WITH SOME DEVICE THAT REALLY MAKES IT ACCOUNTABLE SAID SANDY D'ALEMBERTE A FLORIDA LAWYER AND FORMER PRESIDENT OF THE AMERICAN BAR ASSOCIATION FREED A LOUISIANA STATE APPEALS COURT HAS FREED A MAN WHO WAS JAILED FOR CONTEMPT OF COURT AFTER CRYING OUT AND JUMPING FOR JOY IN RESPONSE TO BEING ACQUITTED IN A CRIMINAL CASE THE ASSOCIATED PRESS REPORTED KEVIN DOMINIQUE HAD SERVED NINE DAYS OF HIS SIXMONTH CONTEMPT SENTENCE BEFORE THE APPEALS COURT DECLARED THE PENALTY TOO GREAT UNDER THE CIRCUMSTANCES RICHARD B SCHMITT CONTRIBUTED TO THIS ARTICLE 9306250174 930625 DIVIDEND NEWS EMONS HOLDINGS INC EMONS HOLDINGS INC YORK PA SAID ITS BOARD VOTED TO OMIT ITS SEMIANNUAL DIVIDEND OF SEVEN CENTS A SHARE ON ITS 14CENT CUMULATIVE CONVERTIBLE PREFERRED STOCK WHICH WOULD ORDINARILY BE PAYABLE JULY 1 THE FREIGHT TRUCKING COMPANY SAID THE DIVIDEND IS CUMULATIVE AND THEREFORE WOULD HAVE TO BE PAID BEFORE ANY FUTURE DIVIDENDS ON ITS COMMON STOCK COULD BE PAID THE COMPANY ALSO OMITTED THE PREVIOUS SEMIANNUAL DIVIDEND PAYABLE JAN 2 WITH THE LATEST OMISSION EMONS SAID IT WILL BE 725342 IN ARREARS ON THE DIVIDEND 9306250173 930625 IMPASSE IS DECLARED IN AMR NEGOTIATIONS WITH UNIT'S PILOTS WASHINGTON CONTRACT NEGOTIATIONS BETWEEN AMR CORP AND THE UNION REPRESENTING 1200 PILOTS OF AMR'S AMERICAN EAGLE UNIT'S FLAGSHIP AIRLINES HAVE COME TO A STANDSTILL THE NATIONAL MEDIATION BOARD SAID THE NEGOTIATIONS HAVE REACHED AN IMPASSE AND IMPOSED A 30DAY COOLING OFF PERIOD THAT BEGAN YESTERDAY THE PILOTS REPRESENTED BY ALLIED PILOTS ASSOCIATION AND AMR MANAGEMENT HAVE BEEN TRYING FOR 11 MONTHS TO REACH AN AGREEMENT IF AFTER THE 30DAY PERIOD THE TWO SIDES HAVE NO AGREEMENT PILOTS CAN STRIKE AND MANAGEMENT CAN IMPOSE ITS OWN CONTRACT IN DECEMBER 1992 AMR'S REPRESENTATIVES REQUESTED FEDERAL MEDIATION BUT THE TWO SIDES ONLY AGREED TO SUBMIT ONE ISSUE INVOLVING THE REORGANIZATION OF CERTAIN PILOT TRAINING FACILITIES FOR BINDING ARBITRATION THE PILOTS WORK FOR FLAGSHIP AIRLINES AMERICAN AIRLINES' REGIONAL PARTNER SERVING THE NORTHEAST AND SOUTHEAST US AMR CORP LOCATED IN FORT WORTH TEXAS IS THE PARENT OF AMERICAN AIRLINES ISSUES THAT REMAIN UNRESOLVED INVOLVE WORK RULES SAFETY COMPENSATION AND BENEFITS ALMOST HALF OF OUR PILOTS EARN LESS THAN 15000 ANNUALLY AND MANY OF THESE FAMILIES QUALIFY FOR FOOD STAMPS AND GOVERNMENT ASSISTANCE SAID CAPTAIN TOM MCMEANS AN ALLIED PILOTS ASSOCIATION NEGOTIATOR A SPOKESMAN FOR AMERICAN EAGLE SAID THE COMPANY BELIEVES IT CAN REACH A SETTLEMENT BY THE END OF THE COOLING OFF PERIOD AMR CORP AND ABOUT 8800 AMERICAN AIRLINES PILOTS ENDURED TENSE CONTRACT NEGOTIATIONS THAT LASTED 16 MONTHS AFTER THE PILOTS' CONTRACT EXPIRED IN 1989 AN AGREEMENT WAS REACHED IN FEBRUARY 1991 AVOIDING ANY COOLING OFF PERIOD OR STRIKE FOR 1992 AMR CORP HAD A LOSS OF 12 BILLION OR 2723 A SHARE THE LAST PROFITABLE QUARTER FOR THE AIRLINE WAS THE THIRD QUARTER OF 1991 9306250172 930625 EIGHT MEN ARRESTED IN AN ALLEGED PLOT TO BOMB UN OTHER NEW YORK TARGETS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EIGHT MEMBERS OF AN ALLEGED MIDDLE EASTERN TERRORIST RING WERE ARRESTED IN A PLOT TO BOMB SEVERAL MAJOR FACILITIES HERE INCLUDING THE UNITED NATIONS AND TWO HUDSON RIVER TUNNELS LINKING NEW YORK CITY AND NEW JERSEY THE ALLEGED RINGLEADER OF THE GROUP SIDDIG IBRAHIM SIDDIG ALI 32 YEARS OLD ALSO WAS INVOLVED IN PLANNING LAST FEBRUARY'S BOMBING OF THE WORLD TRADE CENTER FEDERAL OFFICIALS SAID THE GROUP PLANNED TO DETONATE HOMEMADE BOMBS IN SEPTEMBER TO COINCIDE WITH THE START OF THE TRIAL OF THE SIX DEFENDANTS IN THE WORLD TRADE CENTER CASE BESIDES THE UN THE BOMBING TARGETS WERE TO INCLUDE THE HOLLAND AND LINCOLN TUNNELS AND THE NEW YORK OFFICES OF THE FEDERAL BUREAU OF INVESTIGATION OFFICIALS SAID SECURITY AT MAJOR BUILDINGS TUNNELS AND BRIDGES IN THE CITY WAS HEIGHTENED AFTER THE ARRESTS OFFICIALS SAID THE GROUP ALSO TALKED ABOUT ASSASSINATING TWO NEW YORK POLITICIANS INCLUDING SEN ALFONSE D'AMATO THE FBI SAID OTHER POSSIBLE TARGETS WERE SAID TO BE UN SECRETARYGENERAL BOUTROS BOUTROSGHALI AND EGYPTIAN PRESIDENT HOSNI MUBARAK ALTHOUGH THAT COULDN'T BE CONFIRMED FIVE OF THE EIGHT SUSPECTS WERE ARRESTED ABOUT 130 AM EDT YESTERDAY IN A RAID AT A GARAGE BEHIND A QUEENS NY STOREFRONT WHERE THEY WERE ALLEGEDLY MAKING WHAT THE FBI CALLED A WITCH'S BREW OF CHEMICAL EXPLOSIVES THE THREE OTHERS WERE ARRESTED A SHORT TIME LATER AT THEIR HOMES AROUND THE METROPOLITAN AREA LIKE THE RING ALLEGEDLY RESPONSIBLE FOR THE FEB 26 TRADE CENTER BOMBING THE LATEST GROUP APPEARS TO HAVE BEEN DRIVEN BY A RADICAL MUSLIM IDEOLOGY FEDERAL OFFICIALS SAID THAT FIVE OF THE MEN ARE BELIEVED TO BE FROM THE SUDAN TWO ARE US CITIZENS AND ONE IS JORDANIAN SEVERAL HOURS AFTER THESE NEW ARRESTS THE FBI ALSO EXECUTED A SEARCH WARRANT ON THE JERSEY CITY NJ HOME OF SHEIK ABDEL RAHMAN OMAR A RADICAL EGYPTIAN CLERIC WHO IS SUSPECTED BY FEDERAL AUTHORITIES OF HAVING INSPIRED THE TRADE CENTER BOMBING BUT JAMES FOX THE CHIEF OF THE FBI OFFICE IN NEW YORK SAID THERE ARE NO PLANS TO ARREST THE SHEIK AT THIS TIME THE SHEIK WHO WAS IN NEW JERSEY YESTERDAY HAS DENIED HAVING ANYTHING TO DO WITH THE BOMBING THE SHEIK SAID LAST NIGHT HOWEVER THAT MR SIDDIG HAD INTERPRETED FOR HIM UP UNTIL LAST WEEK ACCORDING TO THE ASSOCIATED PRESS FEDERAL OFFICIALS SAID THE SUSPECTS WEREN'T YET AT THE POINT OF BEING ABLE TO DETONATE BOMBS BUT THE FBI DECIDED TO CLOSE IN BECAUSE THE GROUP HAD TAKEN SIGNIFICANT STEPS INCLUDING ACQUIRING FERTILIZER FUEL FROM A GAS STATION OWNED BY ONE OF THE SUSPECTS AND 55GALLON DRUMS TO HOUSE THE BOMB MATERIALS THE EIGHT WERE ARRAIGNED IN FEDERAL COURT IN MANHATTAN AND ARE BEING HELD WITHOUT BAIL SECRET INFORMANT THE FBI SAID IT LEARNED OF THE RING FROM A SECRET INFORMANT ACCORDING TO COURT DOCUMENTS THE UNIDENTIFIED INFORMANT WORKED CLOSELY WITH THE RING AND ESPECIALLY WITH MR ALI THE ALLEGED LEADER THE INFORMANT WENT SO FAR AS TO RENT THE QUEENS SAFE HOUSE WHERE THE ALLEGED BOMBMAKING TOOK PLACE AND TO PRETEND TO SWEEP ANOTHER MEETING PLACE FOR BUGS THE FBI SAID HOWEVER THE SAFE HOUSE TURNED OUT TO BE FAR FROM SAFE FBI BUGS AND SURVEILLANCE ALLEGEDLY CAUGHT THE SUSPECTS IN THE ACT OF PLOTTING THEIR ATTACKS MR ALI HAD FEARED ELECTRONIC EAVESDROPPERS ACCORDING TO THE COMPLAINT AND HAD COME UP WITH CODE WORDS TO DESCRIBE THE GROUP'S TARGETS THE UN WAS CALLED THE BIG HOUSE THE FBI HEADQUARTERS THE CENTER THE INFORMANT STAYED CLOSE TO THE ALLEGED RINGLEADER WHILE THE PLANS WERE BEING HATCHED THE FBI COMPLAINT SAID AMONG OTHER THINGS HE DROVE WITH MR ALI TO PHILADELPHIA TO GET CHEMICALS TO MAKE BOMBS TOURED MANHATTAN AS THEY INSPECTED POTENTIAL BOMB SITES AND LISTENED AS MR ALI CONFESSED TO HIS INVOLVEMENT IN THE WORLD TRADE CENTER BOMBING THE GOVERNMENT COMPLAINT SAID MR ALI AND FELLOW SUSPECT CLEMENT RODNEY HAMPTONEL TOLD THE INFORMANT THEY HAD PARTICIPATED IN A TEST OF EXPLOSIVES USED IN THE TRADE CENTER BOMBING MR ALI ALSO ALLEGEDLY TOLD THE INFORMANT THAT THE MESSAGE OF THE WORLD TRADE CENTER BOMBING HAD BEEN WE CAN GET YOU ANYTIME UNLIKE THAT BOMBING WHICH BORE THE MARKS OF AMATEURISM THIS LATEST ALLEGED TERRORIST CELL SEEMED TO BE MUCH MORE PROFESSIONAL THE GROUP ALLEGEDLY HAD SUFFICIENT FUNDS TO ACQUIRE EXTENSIVE BOMBMAKING MATERIAL AND THE FBI SAID THE GROUP CONDUCTED A TEST EXPLOSION OF THEIR HOMEMADE BOMB IN RURAL NORTHWESTERN CONNECTICUT ON JUNE 20 THE COMPLAINT SAID MR ALI ALSO BOASTED TO THE INFORMANT THAT HE HAD A CONNECTION AT THE UN THAT WOULD ENABLE HIM TO DRIVE A CAR LADEN WITH BOMBS INTO A GARAGE BENEATH THE UN BUILDING THE COMPLAINT DIDN'T MENTION ASSASSINATIONS ALTHOUGH MR FOX OF THE FBI LATER CONFIRMED THAT THE GROUP HAD TARGETED SEN D'AMATO AND NEW YORK STATE ASSEMBLYMAN DOV HIKIND SEN D'AMATO A REPUBLICAN HAS SAID HE BELIEVED HE WAS TARGETED BECAUSE HE HAD CALLED FOR SHEIK OMAR'S DEPORTATION MR HIKIND HAS CALLED FOR PROSECUTING THE SHEIK FOR ALLEGEDLY INCITING ANOTHER FOLLOWER TO KILL RADICAL ACTIVIST RABBI MEIR KAHANE MR FOX WOULDN'T CONFIRM A NEW YORK NEWSDAY REPORT THAT THE GROUP PLANNED TO KILL MESSRS BOUTROSGHALI AND MUBARAK MR BOUTROSGHALI IS AN EGYPTIAN AND A MEMBER OF THE COUNTRY'S COPTIC CHRISTIAN MINORITY WHICH HAS BEEN A TARGET OF MUSLIM RADICALS THE RADICALS ALSO HAVE BEEN SEEKING TO TOPPLE MR MUBARAK'S SECULAR GOVERNMENT MR ALI CAME TO THE US FROM THE SUDAN IN 1988 ACCORDING TO HIS ATTORNEY WILLIAM KUNSTLER HE HAD BEEN A SECURITY GUARD FOR THREE YEARS BEFORE BEING LAID OFF LAST YEAR AND HAS MADE A LIVING SELLING TSHIRTS AT FAIRS MR KUNSTLER SAID THE LAWYER ADDED THAT HE CAME TO KNOW HIS CLIENT WHEN MR ALI ATTENDED THE TRIAL OF ANOTHER CLIENT ELSAYED NOSAIR AN EGYPTIAN ACCUSED OF KILLING RABBI KAHANE SEVERAL OF THE SUSPECTS IN THE WORLD TRADE CENTER CASE ALSO HAD LINKS TO MR NOSAIR WHO IS IN PRISON ON A RELATED GUN CHARGE BESIDES MR ALI AND MR HAMPTONEL THE NEW SUSPECTS IN CUSTODY ARE AMIR ABDELGHANI FARES KHALAFALLA TARIG ELHASSAN VICTOR ALVAREZ WHO IS ALSO KNOWN AS MOHAMMAD FADEL ABDELGHANI AND MOHAMMAD SALEH WHO OWNS A GAS STATION IN YONKERS NY THAT ALLEGEDLY WAS THE SOURCE OF FUEL FOR THE HOMEMADE BOMBS EACH FACES 15 YEARS IN PRISON IF CONVICTED OF THE CURRENT CHARGES BUT MARY JO WHITE US ATTORNEY IN MANHATTAN SAID HER OFFICE IS LOOKING AT POSSIBLE ADDITIONAL CHARGES AND HASN'T RULED OUT THE POSSIBILITY THAT SOME OF THE SUSPECTS WILL BE CHARGED IN CONNECTION WITH THE WORLD TRADE CENTER CASE SPEAKING TO THE NATIONAL ASSOCIATION OF POLICE ORGANIZATIONS PRESIDENT CLINTON CALLED THE INVESTIGATION A VERY IMPRESSIVE PIECE OF WORK A REAL TRIBUTE TO THE LOCAL FOLKS AND THE COOPERATION THAT THE FEDERAL GOVERNMENT AND THE LOCAL PEOPLE HAD DAVE KANSAS IN NEW YORK AND CARLA ANNE ROBBINS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9306250171 930625 CREDIT MARKETS TREASURY BOND PRICES CLIMB ALTHOUGH TRADERS FEAR FED MAY BOOST SHORTTERM INTEREST RATES BY THOMAS T VOGEL JR AND TOM HERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DESPITE RECENT REPORTS INDICATING REDUCED INFLATION IN MAY MANY BOND MARKET PLAYERS CONTINUE TO WORRY THAT THE FEDERAL RESERVE MAY RAISE SHORTTERM INTEREST RATES TO DEMONSTRATE ITS INFLATIONFIGHTING RESOLVE IN RECENT WEEKS VARIOUS FED OFFICIALS HAVE SUGGESTED THAT IF IT APPEARED INFLATION WAS MOVING TO A 4 ANNUAL RATE THEY WOULD MOVE TO NUDGE UP RATES PART OF THE REASON FOR THE PUBLIC COMMENTS ACCORDING TO SOME ANALYSTS IS TO REDUCE THE INFLATIONARY EXPECTATIONS BUT WHEN THE MAY INFLATION NUMBERS CAME OUT AT LOWER LEVELS THAN IN PREVIOUS MONTHS MANY IN THE MARKETS ASSUMED THAT ANY POTENTIAL FED MOVE TO RAISE RATES HAD BEEN PUSHED FURTHER INTO THE FUTURE THE PRODUCER PRICE INDEX WAS UNCHANGED IN MAY IN CONTRAST TO AN INCREASE OF 06 IN APRIL THE CONSUMER PRICE INDEX ROSE JUST 01 IN MAY COMPARED WITH 04 IN APRIL YESTERDAY TREASURY YIELDS MOVED DOWN SLIGHTLY WITH THE BENCHMARK 30YEAR BOND YIELDING 673 BY DAY'S END DOWN FROM 676 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 105 THE 10YEAR NOTE YIELDED 585 DOWN FROM 588 AS ITS PRICE ROSE 1/4 POINT TO 102 28/32 IN AN INTERVIEW TO BE BROADCAST THIS WEEKEND BY THE NATIONALLY SYNDICATED TELEVISION PROGRAM THE WALL STREET JOURNAL REPORT FED GOVERNOR LAWRENCE LINDSEY REITERATES THE FED'S DETERMINATION TO CONTROL INFLATION THE PROGRAM IS PRODUCED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER IF INFLATION IS THERE BECAUSE PEOPLE SIMPLY EXPECT IT TO GO UP I HOPE THEY TAKE MY COMMENTS AND THOSE OF MY COLLEAGUES VERY SERIOUSLY HE SAID I THINK IT'S IMPORTANT THAT WE STRESS THAT WE ARE CONCERNED ABOUT INFLATION AND THAT WE ARE NOT GOING TO LET IT COME BACK HE ADDED MR LINDSEY ALSO TOLD THE WALL STREET JOURNAL REPORT THAT THERE WASN'T A CONCERTED EFFORT BY FED OFFICIALS TO PUBLICLY COMMENT ON THE FED'S CONCERNS ABOUT INFLATION WE ALL INDEPENDENTLY FEEL STRONGLY ENOUGH ABOUT INFLATION TO SPEAK OUT ABOUT IT AND THAT'S WHY WE ARE DOING WHAT WE ARE DOING HE SAID TO BE SURE MR LINDSEY OFFICIALLY THREW HIS HAT INTO THE RING AS AN INFLATION HAWK BACK IN MARCH DURING A MEETING OF THE FED'S POLICYSETTING OPENMARKET COMMITTEE THE COMMITTEE VOTED TO MAINTAIN A NEUTRAL STANCE TOWARD RATE HIKES BUT MR LINDSEY AND FELLOW FED GOVERNOR WAYNE ANGELL VOTED FOR AN IMMEDIATE INCREASE IN RATES TO HEAD OFF A POTENTIAL INCREASE IN INFLATION AT THE LAST COMMITTEE MEETING IN MAY HOWEVER IT IS BELIEVED THAT THE VOTE WENT THE OTHER WAY TO FAVOR A BIAS TOWARD HIGHER INTEREST RATES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE FEDERAL RESERVE EVENTUALLY WILL RAISE RATES BUT NOT RIGHT AWAY PREDICTED RICHARD B HOEY CHIEF ECONOMIST OF DREYFUS CORP AND PRESIDENT OF DREYFUS GROWTH AND INCOME FUND WHICH MANAGES 684 MILLION HE SEES NO REASON FOR THE FED TO ACT NOW BECAUSE HE SAYS INFLATION ISN'T LIKELY TO SURGE ANYTIME SOON I DON'T BELIEVE THE STORY OF A FAST RISE IN INFLATION SAID MR HOEY INSTEAD MR HOEY EXPECTS A GRADUAL RISE IN INFLATION LATER THIS YEAR LEADING TO SLIGHTLY HIGHER SHORTTERM INTEREST RATES HE SAID SOME SHORTTERM RATES COULD INCREASE BY HALF A PERCENTAGE POINT BY YEAR END FED OFFICIALS ARE LIKELY TO WAIT UNTIL THEY GET MORE EVIDENCE OF HIGHER INFLATION BEFORE MAKING ANY MOVES TO RAISE RATES MR HOEY TOLD REPORTERS AT A DREYFUS LUNCHEON YESTERDAY WHEN THE EVIDENCE COMES THEN THEY'LL TIGHTEN BUT WE'RE NOT THERE YET DON'T EXPECT THE FED TO ACT NOW MERELY IN REACTION TO INFLATION FEARS AMONG SOME INVESTORS MR HOEY SAID THE FED IS SUPPOSED TO RESPOND TO ITS OWN VIEW OF ECONOMIC REALITY NOT TO INVESTOR FEARS AND MISPERCEPTIONS HE SAID MEANWHILE TREASURY PRICES ROSE EARLY YESTERDAY IN REACTION TO AN UNEXPECTED RISE IN INITIAL JOBLESS CLAIMS THE LABOR DEPARTMENT REPORTED CLAIMS ROSE 8000 TO 353000 IN CONTRAST TO FORECASTS WHICH HAD CENTERED ON A SLIGHT DECLINE IN TAKING PRICES HIGHER PARTICIPANTS WERE ALSO LOOKING AHEAD TO A VIRTUAL DROUGHT IN NEW TREASURY COUPON SECURITIES IN COMING WEEKS WITH THE GOVERNMENT HAVING DONE AWAY WITH THE SEVENYEAR NOTE THAT WOULD HAVE BEEN SOLD IN EARLY JULY THERE WILL BE NO NOTE OR BOND AUCTIONS FOR ABOUT ONE MONTH WE'VE REALLY GOT NO SUPPLY BETWEEN NOW AND THE END OF JULY SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES THAT'S A 30DAY PERIOD WHERE THERE IS NO SUPPLY AND CONTINUAL DEMAND FOR SECURITIES WHILE THE THREAT OF AN IMMEDIATE TIGHTENING OF MONETARY POLICY APPEARS TO HAVE FADED IN THE WAKE OF DATA SHOWING A SOFTER PACE OF ECONOMIC GROWTH THE STEADY DRUM BEAT OF HAWKISH COMMENTS FROM FEDERAL RESERVE OFFICIALS HAS SERVED TO LIMIT THE GAINS THAT SHORTTERM SECURITIES HAVE BEEN ABLE TO POST YESTERDAY FOR EXAMPLE THE TWOYEAR NOTE ROSE LESS THAN 1/8 POINT TO 99 30/32 WHILE LONGERTERM SECURITIES POSTED LARGER GAINS MEANWHILE THE LONG END HAS REAPED THE BENEFITS OF THE FED'S ANTIINFLATION STANCE AS INVESTORS HAVE FELT SAFER MOVING CASH INTO LONGER MATURITIES LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2AGGREGATE DROPPED 23 BILLION IN THE WEEK ENDED JUNE 14 THAT PUTS M2 GROWTH RATE AT 105 FROM THE FOURTH QUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 HERE ARE DETAILS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED JULY 1 AND MATURE JUNE 30 1994 COMPANIES SOLD MORE THAN 34 BILLION OF NEW BONDS YESTERDAY IN A RUSH TO TAKE ADVANTAGE OF CONTINUED LOW INTEREST RATES MEANWHILE MANY INVESTMENTGRADE CORPORATE BONDS AND JUNK BONDS ENJOYED MODEST GAINS OF LESS THAN 1/8 POINT IN SECONDARY MARKET TRADING A HIGHLIGHT OF YESTERDAY'S FLOOD OF NEW ISSUANCE WAS A TWOPART OFFERING BY STONE CONTAINER CORP COMING JUST WEEKS AFTER THE COMPANY WAS FORCED TO POSTPONE A STOCK OFFERING DUE TO WEAK DEMAND THE OFFERING PROVIDED FURTHER EVIDENCE THAT MANY INVESTORS ARE WILLING TO TAKE ON BIG RISKS FOR A HIGHER RETURN THE COMPANY SOLD 150 MILLION OF FIVEYEAR SENIOR NOTES WHICH WERE PRICED AT PAR TO YIELD 12625 THE NOTES WERE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE COMPANY ALSO SAID IT HAS COMMITTED TO SELL TO CERTAIN PURCHASERS IN A PRIVATE TRANSACTION FOR RESALE ONLY TO QUALIFIED INSTITUTIONAL BUYERS 250 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SENIOR SUBORDINATED NOTES THAT ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P STONE'S OFFERING COMES EVEN AS IT SAID YESTERDAY THAT IT EXPECTS A LOSS IN THE SECOND QUARTER THAT WILL EXCEED ITS FIRST QUARTER OPERATING LOSS OF 627 MILLION OR 91 CENTS A SHARE BEFORE THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE STONE CONTAINER'S 150 MILLION FIVEYEAR SENIOR NOTES WERE PRICED AT PAR TO YIELD 12625 WE HAPPEN NOT TO BE BUYING THIS BECAUSE IT'S BASICALLY BETTING ON AN INCREASE IN LINER BOARD PRICES SAID KEVIN CUSKLEY PORTFOLIO MANAGER WITH PENN CAPITAL MANAGEMENT IN CHERRY HILL NJ AN ACTIVE BUYER OF JUNK BONDS THE PAPER AND PACKAGING INDUSTRY HAS BEEN IN A THREEYEAR SLUMP AND THERE ARE NO SIGNS OF RECOVERY IN SIGHT STONE CONTAINER RELIES ON CONTAINERBOARD AND CORRUGATED CONTAINERS FOR TWOTHIRDS OF ITS EARNINGS ANALYSTS SAY MUNICIPAL BONDS CONTINUED THEIR GRADUAL PRICE RISE TO FINISH WITH GAINS OF AS MUCH AS 3/8 POINT MARKET SPECIALISTS SAID THERE IS NO END IN SIGHT TO THE CURRENT UPTREND WHICH IS LARGELY DRIVEN BY PURCHASES BEFORE HEAVY BOND CALLS ON JULY 1 GAINERS IN THE SECONDARY MARKET INCLUDED THE ORLANDO FLA UTILITY COMMISSION'S 5 1/4 ISSUE OF WATER AND ELECTRIC REVENUE REFUNDING BONDS DUE IN 2023 THEY FINISHED 1/8 HIGHER AT 94 3/4 TO YIELD 560 IN THE PRIMARY MARKET A JP MORGAN SECURITIES INC GROUP WON NEW JERSEY HIGHWAY AUTHORITY'S 1167 MILLION 1993 SERIES SENIOR PARKWAY REVENUE REFUNDING BONDS FOR GARDEN STATE PARKWAY THE BONDS WILL YIELD FROM 220 IN 1994 TO 520 IN 2008 AND 2009 THE BOND AUCTION WAS THE BIGGEST IN NEW JERSEY SINCE GOV JIM FLORIO MOVED TO BAN NEGOTIATED UNDERWRITING IN THE STATE HIS ACTION FOLLOWED NEWS IN APRIL OF A FEDERAL INVESTIGATION OF NEGOTIATED UNDERWRITING PRACTICES USED FOR A 29 BILLION BOND ISSUE SOLD BY THE NEW JERSEY TURNPIKE AUTHORITY IN 1991 AND 1992 MORTGAGE SECURITIES SHOWED MODERATE GAINS IN SECONDARY TRADING OF 7 MORTGAGE SECURITIES FOR JULY DELIVERY GOVERNMENT NATIONAL MORTGAGE ROSE 6/32 TO 101 20/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS WERE UP 1/8 POINT AT 101 18/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ADVANCED 1/8 TO 101 13/32 FOUR REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED ALL FREDDIE MAC DEALS WITH ISSUANCE TOTALING ABOUT 17 BILLION LEHMAN BROTHERS HAD TWO DEALS TOTALING 652 MILLION WHILE MERRILL LYNCH & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP EACH BROUGHT A 500 MILLION OFFERING TO MARKET THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9306250170 930625 UPJOHN TO SEEK OVERTURN OF UK BAN OF HALCION KALAMAZOO MICH UPJOHN CO SAID IT WILL GO TO COURT TO OVERTURN A BRITISH GOVERNMENT RULING REVOKING ITS LICENSE TO MARKET HALCION THE DRUG MAKER SAID IT ISN'T AWARE OF ANY OTHER COMPANIES THAT HAVE GONE TO THE BRITISH COURTS TO APPEAL A LICENSING REVOCATION WE WANT TO LET PEOPLE KNOW HOW STRONGLY WE WILL DEFEND THE DRUG AN UPJOHN SPOKESWOMAN SAID IT IS A MATTER OF PRINCIPLE STILL A VERDICT FAVORING UPJOHN LIKELY WILL DO LITTLE TO REVERSE HALCION'S SALES SLIDE HALCION'S WORLDWIDE SALES PLUNGED 286 TO 10 MILLION IN THE FIRST QUARTER COMPARED WITH THE YEAREARLIER PERIOD THEY ARE TRYING TO DEFEND A VERY IMPORTANT PRODUCT AND THEY NEED TO DO THAT EVEN IF IT'S FUTILE SAID DAVID SAKS GRUNTAL & CO'S DRUG ANALYST HALCION IS DEAD THE MARKET IS WIPING OUT EARLIER THIS MONTH THE UK LICENSING AUTHORITY UPHELD A 1991 BAN ON HALCION AND REVOKED THE DRUG'S LICENSE THE ACTION WAS TAKEN IN RESPONSE TO INCREASING REPORTS THAT USERS OF THE SLEEP MEDICATION EXPERIENCE A HIGH INCIDENCE OF NEGATIVE SIDE EFFECTS WE BELIEVE THERE ARE INSUFFICIENT GROUNDS FOR THE LICENSING AUTHORITY'S ACTIONS SAID LEY SMITH UPJOHN'S PRESIDENT AND CHIEF OPERATING OFFICER WE HAVE INVESTED ENORMOUS RESOURCES IN ANSWERING QUESTIONS THEY'VE RAISED NO WE WANT AN INDEPENDENT REVIEW OF THEIR REJECTION OF THOSE ANSWERS HALCION'S SALES IN THE UK REPRESENTED A VERY SMALL PERCENTAGE OF THE DRUG'S SALES IN EUROPE SALES ARE ALSO BANNED IN BRAZIL ARGENTINA AND NORWAY 9306250169 930625 BUSINESS BRIEF DELTA QUEEN STEAMBOAT CO PROPOSAL IS MADE TO COURT FOR AMERICAN HAWAII CRUISES DELTA QUEEN STEAMBOAT CO NEW ORLEANS SAID IT WILL PAY ABOUT 30 MILLION FOR CLOSELY HELD AMERICAN HAWAII CRUISES WHOSE SECURED LENDERS FILED FOR INVOLUNTARY BANKRUPTCY PROTECTION ON JUNE 19 IN A HAWAIIAN FEDERAL COURT THE REORGANIZATION PROPOSAL PRESENTED TO THE COURT BY DELTA QUEEN WILL ELIMINATE PREVIOUS DEBT FROM AMERICAN HAWAII'S BALANCE SHEET FURTHER THE FORMER SECURED LENDERS OF AMERICAN HAWAII WILL BECOME MINORITY SHAREHOLDERS IN THE NEW REORGANIZED COMPANY AS PART OF THE ACQUISITION DELTA QUEEN WHICH OWNS TWO PLEASURE PADDLE WHEEL STEAMBOATS SAID IT WILL INVEST AN ADDITIONAL 20 MILLION IN CAPITAL IMPROVEMENTS ON THE TWO CRUISE SHIPS OF AMERICAN HAWAII IN ADDITION THE FEDERAL COURT NAMED AN AFFILIATE OF DELTA QUEEN TO IMMEDIATELY ASSUME MANAGEMENT OF THE HAWAIIAN CRUISE SHIP COMPANY 9306250168 930625 FOOD RETAILER AHOLD WANTS A BIGGER BITE OF GLOBAL MARKET AMSTERDAM WITH AN AMBITIOUS GLOBAL GROWTH PROGRAM IN THE WORKS THE DUTCH FOOD RETAILER AHOLD NV EXPECTS TO SPEND 750 MILLION TO 900 MILLION GUILDERS 3954 MILLION TO 4745 MILLION ON INVESTMENTS THIS YEAR TO EXPAND EXISTING OPERATIONS IN ADDITION CHAIRMAN CEES VAN DER HOEVEN SAID IN AN INTERVIEW THAT THE COMPANY WILL BOOST PROFIT IN 1993 COME HELL OR HIGH WATER HE DECLINED TO BE SPECIFIC ABOUT THE PROFIT INCREASE BUT HE STRESSED THAT WE THINK THAT IN ORDER TO STAY AT THE TOP WE NEED TO GROW APPROXIMATELY AT THE RATE OF DOUBLING SALES OVER A FIVEYEAR PERIOD ANALYSTS EXPECT THE WORLDWIDE FOOD RETAILER TO INCREASE NET PROFIT THIS YEAR TO 360 MILLION GUILDERS FROM 305 MILLION GUILDERS REPORTED FOR 1992 ANALYSTS ALSO HAVE SAID THAT SALES SHOULD RISE TO 27 BILLION GUILDERS FROM 2232 BILLION GUILDERS HELPED IN PART BY FIRSTTIME CONSOLIDATIONS ABOUT HALF OF AHOLD'S SALES COME FROM ITS US SUPERMARKET CHAINS WHICH INCLUDE BILO GIANT FOOD STORES AND THE FINAST OHIO AND FNS NORTHEAST CHAINS ALTOGETHER US UNITS TALLIED 170 MILLION OF OPERATING EARNINGS FOR AHOLD IN 1992 ON 632 BILLION OF SALES THE COMPANY'S STRATEGY MR VAN DER HOEVEN SAID WILL FOLLOW TWO TRACKSMARKET EXPANSION AND COST CUTTING AHOLD PLANS TO EXPAND EXISTING SUBSIDIARIES BOTH FROM WITHIN AND THROUGH TAKEOVERS AND ALSO PLANS NEW ENTERPRISES MR VAN DER HOEVEN SAID HE SEES STRONG POTENTIAL FOR GROWTH IN THE US WHERE ACQUISITION COSTS ARE RELATIVELY LOW AND WHERE THERE IS PLENTY OF SPACE ALONG THE EAST COAST FOR EXPANDING THE COMPANY'S EXISTING CHAINS HE ALSO SAID AHOLD IS SERIOUSLY LOOKING FOR MORE BUSINESS IN EUROPE AFTER HAVING SALLIED INTO THE PORTUGUESE MARKET IN A BIG WAY LAST YEAR WE WOULD DEFINITELY LIKE TO BUILD UP A FURTHER BASE IN EUROPE HE SAID ADDING THAT THE COMPANY'S APPROACH THERE WILL BE MEASURED MR VAN DER HOEVEN TOOK OVER THE HELM OF AHOLD ON MARCH 1 WHEN PIERRE EVERAERT JOINED THE BOARD OF PHILIPS ELECTRONICS NV 9306250167 930625 BUSINESS BRIEF CARNIVAL CRUISE LINES INC SECONDPERIOD NET ROSE 14 AS OCCUPANCIES INCREASED CARNIVAL CRUISE LINES INC SAID FISCAL SECONDQUARTER EARNINGS ROSE 14 REFLECTING IMPROVED OCCUPANCY RATES ON ITS CRUISE SHIPS NET INCOME IN THE QUARTER ENDED MAY 31 ROSE TO 651 MILLION OR 46 CENTS A SHARE FROM 571 MILLION OR 41 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 9 TO 3782 MILLION FROM 346 MILLION THE RESULTS WHICH WERE AT THE HIGH END OF ANALYSTS' EXPECTATIONS BENEFITED FROM THE ADDITION OF A NEW SHIP THE MS STATENDAM TO CARNIVAL'S HOLLAND AMERICA LINE THE MIAMIBASED COMPANY ALSO NOTED THAT ITS SUPER SAVERS PROGRAM INTRODUCED IN NOVEMBER AND PROVIDING DISCOUNTS FOR ADVANCE BOOKINGS IS HELPING BOOST OCCUPANCY LEVELS AS A RESULT THE REMAINDER OF THE FISCAL YEAR CARNIVAL SAID SHOULD SHOW CONTINUING STRENGTH CARNIVAL SHARES CLIMBED 275 OR 82 TO 3625 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9306250166 930625 S&P RATES INVESTORS' CHANCES OF RECOVERY IF BOND ISSUES FAIL OTHER AGENCIES SAY THE FACTOR SHOULDN'T BE BROKEN OUT FROM TOTAL RISK OF DEFAULT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL BOND RATING AGENCIES OFTEN DISAGREE ON THE GRADE THEY ASSIGN A COMPANY'S PUBLIC OR PRIVATE SECURITIES NOW THEY ALSO DON'T AGREE ON THE NEED FOR A SEPARATE RATING FORMULA FOR THE 100 BILLIONAYEAR MARKET IN NEW PRIVATE PLACEMENTS OF CORPORATE BONDS STANDARD & POOR'S CORP STANDS ALONE IN ARGUING THAT INSTITUTIONAL INVESTORS IN THAT MARKET WANT GUIDANCE ON THEIR CHANCES OF RECOVERING INTEREST AND PRINCIPAL IF AN ISSUER DEFAULTS AND ITS ASSETS ARE DIVIDED AMONG CREDITORS THE RATING DEBATE IS COMING INTO THE PUBLIC EYE BECAUSE THIS WEEK INVESTMENT BANKERS PRICED AND SOLD THE FIRST PRIVATE MARKET DEAL CARRYING PUBLIC DISCLOSURE OF S&PS NEW RATING THE ISSUE FOR 35 MILLION OF SENIOR SECURED FIRST MORTGAGE BONDS OF SOUTH JERSEY GAS CO IS RATED PPR1 WHICH IS THE BEST S&P CAN GIVE NONE OF THE OTHER RATING AGENCIES WOULD HAVE BEEN SO GENEROUS THEY ALL TAKE INTO ACCOUNT AS THEIR PRINCIPAL CONSIDERATION THE CREDITWORTHINESS OF THE ISSUER ITSELF MOODY'S INVESTOR SERVICE INC SIZED THE DEAL UP WITH ONE OF ITS LOWEST INVESTMENT GRADE RATINGS BDOUBLEA1 AND EVEN S&P A UNIT OF MCGRAWHILL INC ON ITS TRADITIONAL SCALE OF RATING A PRIVATE PLACEMENT WAS IN THE SAME LOW INVESTMENT GRADE BALLPARK WITH A TRIPLEBPLUS WITH TWO WIDELY DIFFERENT RATINGS ON THE SAME ISSUE S&P IS IN EFFECT GIVING NEW MEANING TO THE TERM SPLIT RATING S&P SAYS ITS TRADITIONAL RATING MEASURES ONLY THE RISK OF THE ISSUER DEFAULTING IN TIMELY PAYMENT OF INTEREST AND PRINCIPAL THE PPR ON THE OTHER HAND MEASURES THE RISK OF ACTUAL LOSS TO THE INVESTOR IF A DEFAULT SHOULD OCCUR A HIGHER PPR RATING FOR INSTANCE MEANS THE ISSUE HAS STRONG COLLATERAL INVESTORS CAN GET THEIR HANDS ON AS WELL AS STRICT COVENANTS OR OPERATING CONDITIONS THAT COULD FOR INSTANCE TRIGGER EARLY PAYMENTS IF VIOLATED MOODY'S AND FITCH INVESTORS SERVICE ANOTHER RATING SERVICE MAINTAIN THEIR APPROACHES ALREADY ARE TAILORED TO THE SPECIFIC RECOVERY PROSPECTS OF AN ISSUE OUR RATINGS ATTEMPT TO CAPTURE BOTH THE RISK OF DEFAULT AND THE CHANCE FOR RECOVERY SAYS DOUGLAS WATSON A DIRECTOR OF MOODY'S THE TWO SHOULD BE CONSIDERED TOGETHER NOT SEPARATELY HE SAYS BECAUSE EVEN WHEN THE RISK OF RECOVERY IN A DEFAULT IS HIGH THERE CAN BE EXTENDED DELAYS OF THREE MONTHS TO A YEAR BEFORE AN INVESTOR GETS ANYTHING BACK OTHER RATING AGENCY OFFICIALS NOTE THAT INSTITUTIONAL INVESTORS NEED TO BE CONSCIOUS OF DEFAULT RISK BECAUSE THEY MAY HAVE LIABILITIES DEPENDENT FOR PAYMENT ON THE TIMELY RECEIPT OF THE PRINCIPAL FROM A MATURING PRIVATE PLACEMENT FITCH'S RICHARD WILSON AN EXECUTIVE MANAGING DIRECTOR SAYS JUST LOOKING AT COLLATERAL AND COVENANTS IS MEANINGLESS FOR THAT MATTER EVEN THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS WHICH ONLY RATES PRIVATE PLACEMENTS TO DETERMINE HOW MUCH RESERVES INSURERS NEED TO CARRY HAS ONLY ONE RATING THAT INCORPORATES BOTH RISK OF DEFAULT AND CHANCE OF RECOVERY S&P MAINTAINS HOWEVER THAT THE WEIGHTING GIVEN BY THE OTHERS TO COLLATERAL AND COVENANTS IS OFTEN TOO SMALL TO REFLECT THE TRUE CHANCE FOR RECOVERY OF AN INVESTMENT INVESTORS WERE TELLING US THEY WANTED TO SEE TWO TYPES OF ANALYSIS SO THEY COULD JUDGE FOR THEMSELVES SAYS BRIAN MCCULLOUGH THE DIRECTOR OF S&P'S UTILITY RATINGS GROUP HE HAS A POINT THE OFFICIAL FROM MOODY'S AND FITCH SAY EVEN THE STRONGEST COLLATERAL AND CONVENANT POSITIONS WILL ONLY MOVE AN ISSUE UP A NOTCH WITHIN A GRADE THUS IF THE SENIOR PUBLIC BONDS OF A COMPANY ARE RATED TRIPLEB A STRONGER COLLATERAL POSITION FOR A SENIOR PRIVATE PLACEMENT BOND WOULD GET A TRIPLEBPLUS INVESTMENT BANKERS SAY IT'S TOO EARLY TO TELL IF THE S&P APPROACH WILL CATCH ON AND GIVE A BOOST TO SOME ISSUES THAT OTHERWISE MIGHT BE A TOUGH SELL STEPHEN MONAHAN JR MANAGING DIRECTOR OF LONGTERM FINANCE FOR CONTINENTAL BANK HOWEVER HAS ALREADY MADE UP HIS MIND I DON'T THINK INSTITUTIONAL INVESTORS NEED OR WANT IT THEY ARE SOPHISTICATED ENOUGH TO MAKE THEIR OWN ANALYSIS OF THE CHANCES FOR RECOVERY AS FOR THE SOUTH JERSEY GAS DEAL JERRY LEVITT EXECUTIVE VICE PRESIDENT OF THE COMPANY SAYS WE DON'T KNOW FOR SURE WHETHER IT THE PPR HELPED THE SELLING EFFORT BUT IT WAS ANOTHER POSITIVE BIT OF INFORMATION 9306250165 930625 BUSINESS BRIEF LONRHO PLC CONGLOMERATE'S PRETAX PROFIT JUMPED 74 IN SIX MONTHS BRITISH CONGLOMERATE LONRHO PLC SAID ITS PRETAX PROFIT ROSE 74 IN THE SIX MONTHS ENDED MARCH 31 TO 87 MILLION 128 MILLION BOOSTED BY IMPROVED PROFIT FROM THE PRECIOUSMETALS DIVISION OVERALL SALES IN THE GROUP SLIPPED 21 TO 156 BILLION MOSTLY BECAUSE OF THE DISCONTINUATION OF A NUMBER OF OPERATIONS THE RESULTS WERE BETTER THAN ANALYSTS EXPECTED BUT THE DIVIDEND HAS BEEN MAINTAINED AT TWO PENCE THREE CENTS A SHARE IN LINE WITH MARKET EXPECTATIONS LONRHO WHICH HAS INTERESTS RANGING FROM PRINTING TO HOTELS AND MINING SAID PROFIT WAS LED HIGHER BY INCREASED PROFITABILITY IN ITS AFRICAN PRECIOUSMETALS MINING CONCERNS THIS WAS ACHIEVED DESPITE A FALL IN THE PRICE OF RHODIUM IT ADDED THE PERFORMANCE OF ITS INTERNATIONAL HOTEL BUSINESS ALSO IMPROVED IN THE FIRST HALF OF THIS FINANCIAL YEAR LONRHO SAID 9306250164 930625 TECHNOLOGY BRIEF FUJITSU LTD GERMAN UNIVERSITY ORDERS NEW TYPE OF SUPERCOMPUTER FUJITSU LTD SAID A GERMAN RESEARCH UNIVERSITY HAS ORDERED A NEW VECTOR PARALLEL SUPERCOMPUTER WHICH THE JAPANESE COMPANY CLAIMS IS THE WORLD'S FIRST SUCH MACHINE WHILE FUJITSU HAS SOLD MORE THAN 40 OTHER SUPERCOMPUTERS IN EUROPE THE NEW MACHINE COMBINES TWO SIMILAR TECHNOLOGIES THE FIRST VECTOR PROCESSING IS USED IN TRADITIONAL SUPERCOMPUTERS TO CARRY OUT A LARGE NUMBER OF RELATED CALCULATIONS ALL AT ONCE THE SECOND PARALLEL PROCESSING ALLOWS COMPUTERS TO DIVIDE UP A PROGRAM SO THAT IT CAN RUN DIFFERENT PARTS OF IT ON HUNDREDS OR THOUSANDS OF MICROPROCESSORS RUNNING IN PARALLEL COMBINING THE TWO TECHNOLOGIES YIELDS UNMATCHED SPEED FUJITSU CLAIMS THE TECHNICAL UNIVERSITY OF AACHEN ORDERED THE MACHINE THROUGH THE COMPUTER UNIT OF GERMAN ELECTRONICS GROUP SIEMENS AG SIEMENS NIXDORF INFORMATIONSSYSTEME AG WHICH SELLS FUJITSU'S SUPERCOMPUTERS UNDER ITS OWN NAME FUJITSU DIDN'T DISCLOSE THE PRICE THOUGH IT SAID A SIMILAR COMPUTER WOULD COST A JAPANESE CUSTOMER 15 MILLION YEN 138000 A MONTH TO RENT THE UNIVERSITY WILL USE THE COMPUTER PRIMARILY FOR SIMULATING AIRFLOW ALONG AIRCRAFT WING SURFACES FUJITSU SAID 9306250163 930625 INTERNATIONAL BRIEF BANQUE NATIONALE DE PARIS FIRSTHALF NET GROUP PROFIT EXPECTED TO DECLINE BY 50 FRENCH STATEOWNED BANQUE NATIONALE DE PARIS VIEWED AS A PRIME CANDIDATE FOR PRIVATIZATION LATER THIS YEAR SAID THAT FIRSTHALF NET GROUP PROFIT MAY BE ONLY HALF OF THE 133 BILLION FRANCS 2337 MILLION POSTED FOR THE FIRST HALF OF 1992 WHILE UNDERLYING ACTIVITY IS HOLDING UP RELATIVELY WELL AMID THE ECONOMIC SLUMP THE BANK SAID THERE WILL BE A SIGNIFICANT RISE IN CLIENT LOAN PROVISIONS FOR SMALLBUSINESS BORROWERS WHILE SOVEREIGN RISK COVERAGE ALSO WILL WEIGH ON RESULTS WHEREAS LAST YEAR THE MANAGEMENT OF THE SOVEREIGN RISK PORTFOLIO IN A FAVORABLE MARKET ENVIRONMENT ALLOWED US TO GENERATE A POSITIVE CONTRIBUTION OF 17 BILLION FRANCS TO RESULTS THIS WILL TURN NEGATIVE IN 1993 BNP SAID LAST YEAR BNP WAS ABLE TO TRIM COUNTRY RISK BY SELLING OFF LOANS IN THE SECONDARY DEBT MARKET OR CHOOSING NOT TO RENEW EXPIRED CREDIT LINES IN FIRSTHALF 1992 NEW PROVISIONS TOTALED 411 BILLION FRANCS UP 14 FROM THE YEAREARLIER SIX MONTH PERIOD 9306250162 930625 BUSINESS BRIEF REEBOK INTERNATIONAL LTD MACANDREWS & FORBES PLANS TO ACQUIRE BOSTON WHALER REEBOK INTERNATIONAL LTD SAID IT AGREED TO SELL ITS SUBSIDIARY BOSTON WHALER INC TO MACANDREWS & FORBES HOLDINGS INC THE PURCHASE PRICE WAS NOT DISCLOSED THE STOUGHTON MASS FOOTWEAR AND APPAREL MAKER SAID IT EXPECTS THE TRANSACTION WILL CLOSE BY THE END OF JULY REEBOK ACQUIRED BOSTON WHALER A LEISURE BOAT MANUFACTURER WITH HEADQUARTERS IN ROCKLAND MASS IN 1988 FROM THE CML GROUP REEBOK SAID IN DECEMBER IT PLANNED TO SELL THE UNIT WHICH WAS NOT PROFITABLE AS PART OF A BROADER RESTRUCTURING THAT RESULTED IN A NONRECURRING CHARGE OF ABOUT 135 MILLION OR 145 A SHARE FOR THE FOURTH QUARTER OF 1992 REEBOK ALSO IS PLANNING TO SELL ITS ELLESSE FOOTWEAR AND APPAREL UNIT MACANDREWS & FORBES A CLOSELY HELD NEW YORKBASED HOLDING COMPANY PLANS TO MAKE BOSTON WHALER PART OF A NEWLY FORMED SPORTS GROUP REEBOK SAID MACANDREWS & FORBES IS OWNED BY RONALD PERELMAN ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9306250161 930625 BUSINESS BRIEF DAMON CORP SAYS FOUR LAWSUITS FILED OVER COMPANY'S SALE NEEDHAM HEIGHTS MASS DAMON CORP SAID PURPORTED STOCKHOLDERS FILED FOUR LAWSUITS IN THE DELAWARE CHANCERY COURT IN RESPONSE TO THE PENDING ACQUISITION OF THE COMPANY BY NATIONAL HEALTH CARE GROUP INC'S NATIONAL HEALTH LABORATORIES INC DAMON SAID THE ACTIONS NAME IT AND ITS DIRECTORS AS DEFENDANTS AND THAT ONE OF THE ACTIONS ALSO NAMES NATIONAL HEALTH LABORATORIES A SPOKESMAN FOR NATIONAL HEALTH LABORATORIES SAID WE BELIEVE WE'RE OFFERING FAIR VALUE FOR DAMON AND THAT THE SUIT IS WITHOUT MERIT NEW YORK INVESTOR RONALD O PERELMAN IS CHAIRMAN OF NATIONAL HEALTH LABORATORIES AND OWNS A 22 STAKE IN THE COMPANY THE COMPLAINTS DAMON SAID ALLEGE THAT IN APPROVING THE PURCHASE DAMON DIRECTORS BREACHED THEIR FIDUCIARY DUTIES TO DAMON STOCKHOLDERS WHILE THE COMPANY FAILED TO ADEQUATELY CONSIDER OR SOLICIT OTHER BUYERS EACH COMPLAINT SEEKS CLASSACTION CERTIFICATION INJUNCTIVE RELIEF AND DAMAGES DAMON SAID DAMON HAS ACCEPTED A 258 MILLION CASHANDSTOCK OFFER IN THE ACQUISITION THIS WEEK NATIONAL HEALTH LABORATORIES LA JOLLA CALIF BEGAN A 16ASHARE TENDER OFFER FOR 89 MILLION SHARES OR ABOUT 55 OF DAMON'S SHARES OUTSTANDING DAMON COMMON SHARES OUTSTANDING AFTER THE MERGER WILL BE EXCHANGED FOR NATIONAL HEALTH COMMON SHARES EQUAL TO 16 A SHARE DIVIDED BY THE STOCK'S MARKET VALUE DAMON DISCLOSED THAT ANOTHER POSSIBLE BUYER WHO IT DID NOT IDENTIFY EXPRESSED INTEREST IN A BUSINESS COMBINATION WITH DAMON 9306250160 930625 HEALTH GENENTECH INC MERCK REPORT CANCER ADVANCE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL IN A CANCER MILESTONE TWO INDEPENDENT TEAMS FROM GENENTECH INC AND MERCK & CO HAVE DEVELOPED COMPOUNDS TO BLOCK THE MASTER SWITCH THAT TURNS ON THE GROWTH OF TUMORS OF THE PANCREAS COLON AND LUNG THE TARGET IS THE RAS ONCOGENE IN ITS NORMAL FORM THE CANCERCAUSING GENE SENDS SIGNALS THAT GOVERN ORDERLY CELL GROWTH BUT IN ITS MUTANT FORM RAS REMAINS STUCK IN THE ON POSITION PROVOKING THE WILD AND UNRULY CELL GROWTH FOUND IN MANY CANCERS INCLUDING 50 OF HUMAN COLON CANCERS AND 90 OF PANCREATIC CANCERS THE KEY TO RAS IS AN ENZYME THAT UNLEASHES ITS MALIGNANT SIGNAL BOTH THE MERCK AND GENENTECH TEAMS FOLLOWING A DECADE OF INDEPENDENT WORK DEVELOPED THE FIRST COMPOUNDS THAT SPECIFICALLY INHIBIT THIS ENZYME AND THUS BLOCK RAS FROM TRANSFORMING NORMAL CELLS INTO CANCER CELLS BOTH TEAMS EXPRESSED EXCITEMENT AND PLEASURE BUT THEY WARNED THAT THEIR NEW COMPOUNDS AREN'T A CURE OR EVEN A TREATMENT READY FOR HUMAN USE AT THIS TIME THEIR WORK ON THE ENZYME CALLED FARNESYL TRANSFERASE IS REPORTED IN THE CURRENT ISSUE OF THE JOURNAL SCIENCE THIS ENZYME IS AN ACHILLES HEEL OF THE RAS PROTEIN AND OUR THOUGHT WAS THAT IF WE COULD BLOCK IT WE COULD INHIBIT THE ACTION OF THE RAS ONCOGENE ON CELLS SAID JAMES C MARSTERS JR A GENENTECH SCIENTIST AND THE GENENTECH REPORT'S LEAD AUTHOR IN COLLABORATION WITH SCIENTISTS AT THE UNIVERSITY OF TEXAS AT MERCK THE HEAD OF CANCER RESEARCH ALLEN OLIFF SAID THE WORK CULMINATES 11 YEARS OF RAS STUDY BEGUN BY EDWARD SKOLNICK NOW MERCK'S PRESIDENT AND ACCELERATED INTO ITS CURRENT PHASE FIVE YEARS AGO BY DR OLIFF AND A COLLEAGUE JACKSON GIBBS THE DESIGN OF MERCK'S COMPOUND CALLED L 731735 INVOLVED FIRST CLONING THE GENE FOR THE ENZYME THEN CREATING A SYNTHETIC VERSION OF AN ORGANIC COMPOUND A DRUG THAT SPECIFICALLY INHIBITS MALIGNANT TRANSFORMATION WHILE SPARING NORMAL CELLS IN CELL CULTURE WE WERE ABLE TO COMPLETELY BLOCK THE GROWTH OF TUMOR CELLS MADE BY THE RAS MUTANT PROTEIN WHERE WE HAD NO EFFECT ON NORMAL CELLS DR OLIFF NOTED MOST STANDARD CHEMOTHERAPY IS TARGETED NOT JUST AGAINST CANCER BUT TO ALL RAPIDLY DIVIDING CELLS AN ACTION THAT TRIGGERS MANY OF THE CLASSIC TOXIC SIDE EFFECTS ASSOCIATED WITH CHEMOTHERAPY FOR BOTH MERCK AND GENENTECH THE NEXT PHASE INVOLVES RAT STUDIES TOXICITY TESTS AND MORE WORK TO DEVELOP A DRUG VERSION THAT CAN BE ABSORBED BY HUMANS POINTING TO POTENTIAL YEARS OF WORK BEFORE IT MAY ENTER THE CLINIC FOR HUMAN TESTS ONE CONCERN IS THAT THE ENZYME BEING BLOCKED IS INVOLVED NOT ONLY IN RAS ONCOGENE BUT IN NORMAL FUNCTIONS OF A CELL'S NUCLEUS AND IN TRANSMITTING VISUAL SIGNALS ALL OF WHICH MEANS SUCH A DRUG COULD TRIGGER TOXICITY THE HOPE IS WE'LL FIND A THERAPEUTIC WINDOW WITHOUT REACHING TOXICITY DR OLIFF SAID THE REPORTS IN SCIENCE SPARKED AN ENTHUSIASTIC BUT CAUTIOUS ASSESSMENT FROM THE NATIONAL INSTITUTES OF HEALTH WHERE RAS IS ALSO A KEY RESEARCH TARGET HAVING A SPECIFIC INHIBITOR IS VERY EXCITING SAID SAMUEL BRODER DIRECTOR OF THE NATIONAL CANCER INSTITUTE UNIT OF NIH IN BETHESDA MD BUT THERE ARE MULTIPLE STRATEGIES AND A NUMBER OF AGENTS WE ARE CURRENTLY TESTING BEYOND TODAY'S REPORT BY GENENTECH AND MERCK AT LEAST FOUR OTHER COMPOUNDS ARE CURRENTLY BEING TESTED AGAINST RAS HE SAID THESE INCLUDE ANOTHER MERCK DRUG LOVASTATIN AN ANTICHOLESTEROL TREATMENT THAT UNEXPECTEDLY AFFECTS AN EARLY STEP IN RAS ACTIVATION ANOTHER COMPOUND UNDER STUDY AT THE CANCER INSTITUTE IS PHENYLACETATE STILL OTHER POTENTIAL DRUGS UNDER STUDY ARE TWO PLANT EXTRACTS DISCOVERED AT THE UNIVERSITY OF WISCONSIN LIMONENE AN ELEMENT FOUND IN ORANGE RINDS AND PERILLYL ALCOHOL WHICH IS FOUND IN EXTRACT OF LAVENDER IT SOUNDS LIKE SCIENCE FICTION BUT IT'S CONCEIVABLE THAT THEY COULD HAVE A PREVENTATIVE ROLE DR BRODER SAID HOWEVER HE ADDED A STRONG CAVEAT AGAINST A STAMPEDE BY HERBALISTS WE DON'T WANT PEOPLE EATING ORANGE RINDS OR DRINKING ESSENCE OF LAVENDER HE SAID BUT WE NEED TO PUT THIS IN THE CONTEXT THAT THERE ARE MANY AGENTS OUT THERE WORTHY OF STUDY EDWARD SCOLNICK IS PRESIDENT OF MERCK RESEARCH LABORATORIES AND EXECUTIVE VICE PRESIDENT OF ITS PARENT COMPANY MERCK & CO AN ARTICLE FRIDAY ABOUT CANCER RESEARCH INCORRECTLY STATED THAT DR SCOLNICK WAS PRESIDENT OF MERCK 9306250159 930625 BUSINESS BRIEF MARZOTTO SPA ITALIAN CLOTHING COMPANY SEES RETURN TO PROFIT IN 1993 ITALIAN TEXTILE AND CLOTHING MAKER MARZOTTO SPA SHOULD RETURN TO A PROFIT IN 1993 CHAIRMAN PIETRO MARZOTTO SAID IN AN INTERVIEW WITH AN ITALIAN NEWSPAPER MR MARZOTTO TOLD THE PAPER IL SOLE24 ORE THAT THE PARENT COMPANY WOULD POST A PROFIT IN 1993 WITHOUT DOUBT BECAUSE YEAREARLIER LOSSES HAD LARGELY BEEN DUE TO THE PURCHASE OF CLOTHING RETAILER HUGO BOSS MARZOTTO'S PARENT COMPANY REPORTED A LOSS OF 447 BILLION LIRE 293 MILLION FOR 1992 WHILE CONSOLIDATED PROFIT WAS 401 BILLION LIRE VIRTUALLY UNCHANGED FROM THE YEAR EARLIER MR MARZOTTO SAID 1993 CONSOLIDATED REVENUE SHOULD BE IN LINE WITH 1992 REVENUE OF 195 TRILLION LIRE CITING THE LIRA'S DEPRECIATION AND THE SHARP GROWTH IN THE AMOUNT OF REVENUE REALIZED OUTSIDE ITALY MR MARZOTTO SAID HE WANTED OPERATING PROFIT TO RETURN TO THE OLD LEVELS OF ABOUT 10 OF REVENUE FROM 7 IN 1992 9306250158 930625 PHILIPS ELECTRONICS UNIT EXPECTS LOSS PLANS RESTRUCTURING SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV'S GERMAN UNIT ANNOUNCED A SET OF RESTRUCTURING MEASURES AS IT EXPECTS TO POST A LOSS FOR THE FIRST HALF PHILIPS KOMMUNIKATIONS INDUSTRIE AG EXPECTS TO SWING TO A LOSS OF 100 MILLION MARKS 591 MILLION FOR THE HALF FROM A PROFIT OF 60 MILLION MARKS A YEAREARLIER LAST WEEK PKI ANNOUNCED IT WILL CUT 1250 JOBS AS PART OF A BROAD RESTRUCTURING PLAN THE COMPANY SAID A RAPID AND FIRM CORRECTION OF COURSE IS REQUIRED IN VIEW OF THE DRAMATIC DEVELOPMENT IN ORDERS AND RESULTS IN THE FIRST SIX MONTHS OF THIS YEAR PKI FORECAST THAT SALES WILL DROP 20 IN THE FIRST HALF REVENUE FELL 23 IN THE FIRST THREE MONTHS OF 1993 WHILE ORDERS PLUNGED 36 PKI SAID THE NEW MEASURES ARE AIMED AT STRENGTHENING ITS POSITION IN FOREIGN MARKETS IN THE FACE OF COMPETITION THE COMPANY SAID IT PLANS TO CONCENTRATE ON SEVERAL BUSINESS ACTIVITIES SUCH AS NETWORK SYSTEMS PUBLIC RADIO COMMUNICATIONS MOBILE TELEPHONES AND BUSINESS COMMUNICATIONS SYSTEMS THE MOBILE TELEPHONES BUSINESSES WILL BE INCORPORATED INTO AN INTERNATIONAL PERSONAL COMMUNICATIONS UNIT THAT WILL BEGIN OPERATING JULY 1 THE UNIT WILL TAKE OVER THE CONSUMER ELECTRONICS DIVISION'S TELEFAX MINITEL AND CORDLESS TELEPHONE BUSINESSES AS WELL AS THE COMMUNICATIONS SYSTEMS' TERMINAL LINES THE BULK OF PKI'S CABLE OPERATIONS IS BEING SOLD OFF TO DUTCH CABLE MANUFACTURER NKF HOLDING NV THE COMPANY'S COLOGNE GERMANY CABLE PLANT WILL BE CLOSED DOWN 9306250157 930625 NEW YORK MERC RAISES BID FOR COMEX TO 45 MILLION NEW YORK THE NEW YORK MERCANTILE EXCHANGE THE WORLD'S LARGEST ENERGY FUTURES MARKET RAISED ITS OFFER FOR THE COMMODITY EXCHANGE INC THE WORLD'S LARGEST PRECIOUS METALS FUTURES MARKET TO 45 MILLION FROM 20 MILLION OFFICIALS CLOSE TO THE NEGOTIATIONS SAID A COMEX OFFICIAL SAID NEGOTIATING TEAMS FROM BOTH EXCHANGES HAVE DISCUSSED THE 45 MILLION FIGURE THAT AMOUNT WOULD INCLUDE 30 MILLION FROM THE MERC AS WELL AS 15 MILLION FROM THE COMEX'S OWN RESERVES THAT WOULD BE DISTRIBUTED TO COMEX MEMBERS ANY MERGER WILL REQUIRE THE APPROVAL OF BOTH MEMBERSHIPS THE TWO EXCHANGES WHICH INITIATED TALKS AFTER A PROPOSED TAKEOVER OF THE COMEX BY THE CHICAGO BOARD OF TRADE COLLAPSED ARE EXPECTED TO RECEIVE FORMAL PROPOSALS FROM THEIR RESPECTIVE NEGOTIATING TEAMS SOMETIME THIS SUMMER OFFICIALS SAID THE PROPOSALS BEING DISCUSSED THUS FAR DON'T PROVIDE FOR MEMBERS OF ONE EXCHANGE TO TRADE EXISTING PRODUCTS OF THE OTHER BUT DO ALLOW FOR TRADING RIGHTS IN NEW PRODUCTS 9306250156 930625 ROTHSCHILD CUTS STAKE IN SMITH NEW COURT SELLING SHARES RIGHTS LONDON THE ANGLOFRENCH ROTHSCHILD MERCHANT BANKING GROUP SAID IT'S REDUCING ITS STAKE IN SMITH NEW COURT PLC UNDER A CAPITALRAISING EFFORT BY THE UK BROKERAGE FOLLOWING THE SALE TO INSTITUTIONAL INVESTORS OF PART OF ITS EXISTING HOLDING OF SMITH NEW COURT CONVERTIBLE PREFERENCE SHARES AND PART OF ITS SUBSCRIPTION RIGHTS TO AN ISSUE OF NEW SHARES ROTHSCHILD SAID IT WILL HOLD 211 OF THE ORDINARY SHARE CAPITAL OF SMITH NEW COURT DOWN FROM 294 THE NET PROCEEDS FOR ROTHSCHILD ONCE IT HAS SUBSCRIBED TO THE REMAINDER OF ITS ENTITLEMENT OF NEW SHARES WILL BE ABOUT 8 MILLION 118 MILLION ON A FULLY DILUTED BASIS THE ROTHSCHILD GROUP WILL RETAIN A 265 INTEREST IN SMITH NEW COURT DOWN FROM 378 OFFICIALS OF NM ROTHSCHILD & SONS LTD THE UK MERCHANT BANK THAT IS THE PRINCIPAL ARM OF THE GROUP SAID THE MOVE WOULDN'T CHANGE THE RELATIONSHIP BETWEEN THE TWO SIDES ROTHSCHILD HELPED TO FOUND SMITH NEW COURT IN THE MID1980S AND IT REMAINS BY FAR ITS BIGGEST SHAREHOLDER THE TWO HOUSES HAVE CLOSE INSTITUTIONAL AND PERSONAL TIES AND SOMETIMES COOPERATE ON SPECIFIC VENTURES SMITH NEW COURT REPORTED A PROFIT OF 252 MILLION FOR THE YEAR ENDED MAY 7 UP FROM 111 MILLION THE PREVIOUS YEAR THE RIGHTS ISSUE UNDER WHICH IT IS OFFERING TWO NEW ORDINARY SHARES FOR EVERY SEVEN EXISTING ORDINARY SHARES WILL RAISE 412 MILLION SMITH NEW COURT SHARES ROSE 35 PENCE YESTERDAY TO CLOSE AT 285 PENCE ON THE LONDON STOCK EXCHANGE 9306250155 930625 WHO'S NEWS SCIENTIFICATLANTA INC APPOINTS MCDONALD PRESIDENT AND CEO ATLANTA SCIENTIFICATLANTA INC NAMED JAMES F MCDONALD AN EXECUTIVE WITH EXTENSIVE ELECTRONICS EXPERIENCE ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MCDONALD 53 YEARS OLD SUCCEEDS WILLIAM E JOHNSON 52 WHO RESIGNED IN DECEMBER AFTER SUCCESSFULLY RESTRUCTURING THE TELECOMMUNICATIONS EQUIPMENT MAKER MR JOHNSON LEFT AFTER DISAGREEMENTS WITH THE BOARD OVER HIS TOUGH MANAGEMENT STYLE AND THE LOSS OF KEY MANAGERS CURRENT AND FORMER EMPLOYEES SAID AT THE TIME SCIENTIFICATLANTA WILL REMAIN FOCUSED ON SUPPLYING EQUIPMENT TO THE CABLETELEVISION INDUSTRY SAID MR MCDONALD WHO MOST RECENTLY SERVED AS A GENERAL PARTNER AT JH WHITNEY & CO A PRIVATELY HELD INVESTMENT FIRM IN NEW YORK INDEED A TOP PRIORITY HE SAID IS SPENDING A LOT OF TIME WITH KEY CUSTOMERS IN THE CABLE INDUSTRY MR MCDONALD ADDED THAT HE INTENDS TO STREAMLINE MANUFACTURING PROCESSESSPEEDING UP MANUFACTURING CYCLES AND THE TIME IT TAKES TO GET PRODUCTS TO MARKETAND TO BETTER INTEGRATE SCIENTIFICATLANTA'S BUSINESS WITH THE COMPUTER INDUSTRY MR MCDONALD HAS RISEN QUICKLY THROUGH THE RANKS OF ELECTRONICS COMPANIES FILLING SENIOR POSTS WHILE STILL A YOUNG MAN IN 1984 GOULD INC IN ROLLING MEADOWS ILL PLUCKED MR MCDONALD FROM INTERNATIONAL BUSINESS MACHINES CORP WHERE HE HAD WORKED 21 YEARS THE NEXT YEAR HE BECAME GOULD'S CHIEF EXECUTIVE AT AGE 45 KNOWN FOR A HANDSON MANAGEMENT STYLE HE ANGERED SOME EMPLOYEES WHEN HE SOLD OFF THE FIRM'S DEFENSE EQUIPMENT BUSINESSES TO CONCENTRATE ON COMMERCIAL ELECTRONICS SHAREHOLDERS HOWEVER WERE PLEASED WHEN IN 1988 MR MCDONALD SOLD THE COMPANY FOR 11 BILLION TO NIPPON MINING CO IN TOKYO IN 1989 MR MCDONALD BECAME PRESIDENT AND CHIEF EXECUTIVE OF PRIME COMPUTER INC A COMPUTER MAKER IN NATICK MASS OWNED BY J H WHITNEY & CO 9306250154 930625 NOMURA TO UNDERWRITE CHINESE FIRM'S OFFER HONG KONG NOMURA SECURITIES CO ANNOUNCED IT WILL UNDERWRITE AND SPONSOR AN INITIAL PUBLIC OFFERING OF SHARES IN DONGFANG ELECTRIC MACHINERY WORKS WHEN THE MAINLAND CHINESE COMPANY LISTS ON THE HONG KONG STOCK EXCHANGE LATER THIS YEAR THE MANDATE WAS AWARDED TO NOMURA EARLIER THIS MONTH AFTER A NEARLY EIGHTMONTH COMPETITION BETWEEN INVESTMENT BANKS FOR THE BUSINESS IT REPRESENTS A BREAKTHROUGH FOR JAPANESE SECURITIES FIRMS WHICH HAVE LAGGED BEHIND WESTERN FIRMS IN DEVELOPING EQUITY CORPORATE FINANCE ON THE MAINLAND NOMURA HAD COMPETED AGAINST SIX OTHER FINALISTS FOR THE MANDATE THE FIRM SAID AMONG THE UNSUCCESSFUL APPLICANTS WERE JARDINE FLEMING SECURITIES LTD BARING BROTHERS & CO AND SG WARBURG & CO DONGFANG A SICHUAN COMPANY MAKES ABOUT HALF OF CHINA'S HYDROELECTRIC POWERGENERATING EQUIPMENT AND ABOUT 30 OF ITS THERMALPOWER GENERATING EQUIPMENT NOMURA SAID HONG KONGBASED ACCOUNTANTS HAVE JUST BEGUN AUDITING DONGFANG'S FINANCIAL STATEMENTS IN PREPARATION FOR A LISTING APPLICATION 9306250153 930625 TECHNOLOGY FDA OUTLINES STEPS TO SPEED UP REVIEWS OF MEDICAL DEVICES WASHINGTON THE FOOD AND DRUG ADMINISTRATION FACED WITH A BIG BACKLOG OF MEDICALDEVICE APPLICATIONS ANNOUNCED STEPS IT'S TAKING TO STREAMLINE ITS REVIEWS AND BETTER FOCUS ITS RESOURCES ON PRODUCTS WITH THE MOST POTENTIAL BENEFIT WE'RE READY TO MAKE A REAL DIFFERENCE IN THE WAY WE HANDLE DEVICES SAID BRUCE BURLINGTON DIRECTOR OF THE AGENCY'S CENTER FO DEVICES AND RADIOLOGICAL HEALTH THIS WILL HELP WITH THE BACKLOG OF APPLICATIONS AND WITH GETTING HIGHPRIORITY APPLICATIONS OUT TO THE PUBLIC IN A TIMELY WAY ABOUT 1400 APPLICATIONS ARE FORMALLY OVERDUE MR BURLINGTON SAID NEW APPLICATIONS WILL BE RANKED ACCORDING TO THE POTENTIAL BENEFIT OF THE DEVICE THOSE THAT ARE DEEMED MOST VALUABLE SUCH AS THOSE THAT DEAL WITH A PREVIOUSLY UNTREATED AILMENT OR THAT REPRESENT A MAJOR ADVANCE OVER CURRENT TECHNOLOGY WILL RECEIVE THE HIGHEST PRIORITY CURRENTLY IT CAN TAKE MONTHS BEFORE DEVICES ARE EXAMINED IN ADDITION THE FDA WILL TRY TO ALLOCATE MORE RESOURCES TO PRODUCTS THAT POSE THE BIGGEST POTENTIAL RISK AND TO EXEMPT FROM RIGOROUS REVIEW PRODUCTS THAT POSE RELATIVELY INSIGNIFICANT RISKS JAMES BENSON SENIOR VICE PRESIDENT FOR TECHNOLOGY AND REGULATORY AFFAIRS AT THE HEALTH INDUSTRY MANUFACTURERS ASSOCIATION CALLED THE FDA'S STEPS EXCELLENT PROGRESS BUT HE RECOMMENDED THAT THE AGENCY GO FURTHER TO CUT THE BACKLOG BY EASING THE REQUIREMENTS FOR APPLICATIONS THAT SEEK TO MAKE MINOR IMPROVEMENTS OR MODIFICATIONS IN EXISTING DEVICES 9306250152 930601 INTERNATIONAL JAPANESE IN CAMBODIA FAR FROM SAMURAI TROOPS BRING GOODWILL AIR CONDITIONING GOLF BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL TAKEO CAMBODIA SGT HIDEKI YAMAZAKI HAS A TOOTHBRUSH OUT AND IS POLISHING THE BULLET CHAMBER OF HIS ASSAULT RIFLE TO THE STRAINS OF A BEETHOVEN PIANO CONCERTO THE SIXTH SGT YAMAZAKI IDENTIFIES IT IT HELPS ME RELAX AND THINK OF HOME IN JAPAN OF COURSE I DON'T LIKE ONLY BEETHOVEN I LIKE MOZART AND CHOPIN TOO NOT EXACTLY IN THE SAMURAI TRADITION SGT YAMAZAKI IS PART OF JAPAN'S FIRST LARGESCALE OVERSEAS MILITARY FORAY SINCE WORLD WAR II TOKYO DETERMINED TO ECLIPSE UGLY MEMORIES PICKED TROOPS FOR THIS UNITED NATIONS MISSION MORE FOR DIPLOMATIC COOL THAN FOR MARTIAL TOUGHNESS MY WORK IS VERY IMPORTANT FOR WORLD PEACE SGT YAMAZAKI AFFIRMS BUT AS A NEW GENERATION OF JAPANESE SOLDIER IS DISCOVERING BEING GLOBALMINDED IN AN IMPOVERISHED WARTORN SOUTHEAST ASIAN LAND HAS MEANT MAKING ADJUSTMENTS LIKE BUILDING A GOLF PRACTICE CAGE JUST INSIDE THIS CAMP'S BARBEDWIRE PERIMETER OR INSTALLING VENDING MACHINES THAT TAKE YEN AND DISPENSE JAPANESE BEVERAGES SUCH AS POCARI SWEAT AN ISOTONIC DRINK AND CALPIS SODA A FERMENTEDMILK PRODUCT THIS IS BETTER THAN WE EXPECTED SAYS SHINJI YAMADA A 28YEAROLD JAPANESE UN OBSERVER AS HE SHAMPOOS BEFORE PLUNGING INTO A HOMESTYLE BATH SCENTED WITH MINERALS BROUGHT FROM A JAPANESE HOTSPRING RESORT IT'S AIRCONDITIONED AND THEY HAVE JAPANESE SNACKS UNLIKE OTHER PLACES IN CAMBODIA AND NOT SO MANY INSECTS ADDS A VISITING HOME AFFAIRS MINISTRY OFFICIAL FROM TOKYO MODESTLY COVERING UP WITH A TOWEL AND DECLINING TO GIVE HIS NAME THE WAYS OF ARRIVISTE JAPAN BEGIN RIGHT AT THE ENTRANCE TO THIS JAPANESE ENGINEERING BATTALION'S NEWLY IMPROVED PATCH OF SCRUFFY CAMBODIAN GRASSLANDS GRANDLY DUBBED CAMP TAKEO A SIGN IN JAPANESESTYLE ENGLISH REPORTS HERE IS JAPN ENGR BN CAMP AND WARNS THAT PICUTURING IS NOT ALLOWED THAT DOESN'T STOP AT LEAST THREE JAPANESE TELEVISION CREWS FROM VIDEOTAPING EVERYTHING THAT'S HAPPENING TODAY AT CAMP TAKEO SUCH AS THE RETURN TO CAMP OF SEVERAL LARGE WHITE WATERTANKER TRUCKS WITH THE LETTERS U AND N PAINTED ON THEIR SIDES DRIVEN BY JAPANESE TROOPS THE JAPANESE GOVERNMENT'S DECISION LAST YEAR TO PARTICIPATE IN UN PEACEKEEPING EFFORTS IN CAMBODIA WHERE THE UN LAST WEEK STAGED THE FIRST MULTIPARTY ELECTIONS IN 21 YEARS WAS A HUGE ISSUE IN JAPAN SCHOLARS DEBATED ITS CONSTITUTIONALITY PACIFISTS FRETTED ABOUT PRECEDENT JOURNALISTS FLOCKED TO THEIR TRAVEL AGENTS JAPAN'S MAJOR TV NETWORKS AND NEWSPAPERS HAVE HAD FULLTIME NEWS BUREAUS IN THIS PROVINCIAL CAPITAL SINCE JAPANESE TROOPS FIRST LANDED IN CAMBODIA LATE LAST YEAR THE UN TRANSITIONAL AUTHORITY IN CAMBODIA ESTIMATES THAT A THIRD OF THE 2200 PRESS CREDENTIALS IT ISSUED WENT TO JAPANESE THIS IS AS BIG AS THE GULF WAR MAYBE MORE SAYS TAKASHI OHNO A CORRESPONDENT FOR ASAHI SHIMBUN WHO MOVED INTO THE HOUSE HIS NEWSPAPER RENTS NEAR TAKEO LAST WEEK HE WOULD HAVE STAYED IN A HOTEL BUT THE NEAREST STRUCTURE TO CALL ITSELF ONE A BLEAK EIGHTROOM PLACE WITH NO AIRCONDITIONING WAS OCCUPIED BY THE YOMIURI SHIMBUN ASAHI'S ARCHRIVAL ASAHI NOW HAS THREE CORRESPONDENTS LIVING IN TAKEO AND SEVEN MORE POSTED AROUND CAMBODIA COVERING THE ACTIVITIES OF THE 75 OR SO JAPANESE CIVILIAN POLICE AND HANDFUL OF POLLWATCHERS WHO ARE ALSO PART OF THE UN'S 22000PERSON OPERATION IN CAMBODIA WHEN A JAPANESE PEACEKEEPER LAST YEAR MARRIED A CAMBODIAN WOMAN HE MET AT A DANCE HALL REPORTERS DELUGED THE CLUB MR OHNO SAYS NOT THAT THERE HAVEN'T BEEN BIGGER STORIES A JAPANESE CIVILIAN POLICEMAN AND ANOTHER JAPANESE UN VOLUNTEER WERE KILLED IN SEPARATE INCIDENTS IN APRIL AND MAY SO INTENSE WAS THE COVERAGE THAT JAPAN'S GOVERNMENT SENT A TOP MINISTER TO PHNOM PENH TO ASK THE UN WITHOUT SUCCESS TO RECALL HIS COUNTRYMEN FROM DANGEROUS AREAS SOME UNARMED JAPANESE POLICEMEN DIDN'T WAIT FOR THE UN'S REPLY 16 ABANDONED THEIR POSTS THAT CAUSES EMBARRASSMENT AMONG THE 600 OR SO TROOPS AT THIS FORTIFIED CAMP WHO ARE MEMBERS OF THE SELFDEFENSE FORCES JAPAN'S ARMY AND CARRY LOADED PISTOLS AND RIFLES I WOULDN'T BE TELLING THE TRUTH IF I AND OTHERS SAID I DON'T WANT TO GO HOME RIGHT NOW SAYS HIDEAKI TAKAHASHI SWEATING AFTER AN AFTERNOON RUN INSIDE THE CAMP PERIMETER BUT THE GOVERNMENT SAYS WE HAVE TO BE HERE SIX MONTHS AND TO GO HOME EARLY WOULD BE A LOSS OF FACE MEANWHILE JAPANESE TELEVISION ON MONDAY REPORTED THAT ALL JAPANESE CIVILIAN POLICE OFFICERS IN CAMBODIA WILL RETURN HOME JUNE 15 ALMOST A MONTH EARLIER THAN SCHEDULED AFTER VOTE COUNTING IN THE GENERAL ELECTION IS COMPLETED WITH 43 OF THE VOTE COUNTED UNOFFICIAL RESULTS SHOWED THE MAJOR OPPOSITION PARTY FUNCINPEC LEADING BY A SLIM MARGIN BUT THE VIOLENCE ESCALATED AS A URUGUAYAN PEACEKEEPER WAS KILLED AND FIVE OTHERS WERE WOUNDED WHEN SUSPECTED KHMER ROUGE GUERRILLAS AMBUSHED THEIR VEHICLES IN EASTERN CAMBODIA THE URUGUAYAN WAS THE 17TH PEACEKEEPER KILLED IN CAMBODIA THIS YEAR MR TAKAHASHI AND OTHERS HERE MOST OF THEM CAREER SOLDIERS SELECTED FOR MATURITY TRADED THE SNOWY WINTER OF HOKKAIDO JAPAN'S COLD NORTHERN ISLAND FOR THIS HOT HUMID ASSIGNMENT TWO MONTHS AGO REPLACING AN EARLIER CONTINGENT THAT ROTATED OUT YOUR SHADOW IS DIRECTLY UNDER YOU HERE MOANS KATSUMI SHINKAI A BEARDED BASSPLAYING SOLDIER REHEARSING DANCIN' HERO WITH THE CAMP BAND THAT'S UNIMAGINABLE IN JAPAN THERE'S LITTLE ENTERTAINMENT MAHJONG VIDEO GAMES AND KARAOKE SINGALONGS ARE THE MAINSTAYS ASIDE FROM OCCASIONAL PARTIES WHEN THE BAND PLAYS BUT THE MOST DIFFICULT PART HE SAYS IS NOT BEING ABLE TO EAT SASHIMI RAW FISH WHICH DOESN'T TRAVEL WELL FORTUNATELY MR SHINKAI'S MAIN JOB IS WORKING IN THE CANTEEN WHERE THERE ARE AMPLE QUANTITIES OF OTHER STAPLES FROM HOME FROM DRIED SQUID AND NOODLES TO SAKE AND JOHNNY WALKER BLACK LABEL SCOTCH EVERYTHING IS PRICED IN YEN AND WRAPPED NEATLY IN BAGS THAT HAVE A HAPPINESS FOR YOUR FAMILY PRINTED ON THEM THE JAPANESE GOVERNMENT HAS TRIED TO MAKE THE EXPERIENCE MORE PALATABLE FOR THE JAPANESE TROOPS TOO TAGGING A 150 BONUS ON TOP OF A 130 A DAY UN STIPEND EVERYONE WHEN THEY CAME HERE THOUGHT THAT WOULD BE GREAT SAYS CAPT MASAMI OGATA WHOSE BUSINESS CARD LIKE MOST SOLDIERS HERE HE CARRIES ONE WITH A UN LOGO IN ONE CORNER AND A JAPANESE FLAG IN THE OTHER IDENTIFIES HIM AS THE CAMP'S JUDICIAL OFFICER BUT AS WE LEARN MORE ABOUT THE JAPANESE TAX SYSTEM OUR HAPPINESS HAS TURNED TO SORROW THE ADDED INCOME HAS PUSHED MOST SOLDIERS HERE FROM THE 10 TAX BRACKET TO 30 SEE RELATED LETTER LETTERS TO THE EDITOR HUM A FEW BARS WSJ JUNE 25 1993 9306010115 YY93 MM06 9306250151 930625 FLUOR UNIT GETS ARMY CORPS JOB IRVINE CALIF FLUOR CORP'S FLUOR DANIEL UNIT RECEIVED A 20 MILLION CONTRACT FROM THE US ARMY CORPS OF ENGINEERS TO PROVIDE ENVIRONMENTAL SERVICES TO MILITARY AND CIVIL HAZARDOUSWASTE SITES THROUGHOUT THE COUNTRY THE CONTRACT IS FOR ONE YEAR WITH OPTIONS FOR TWO ADDITIONAL YEARS 9306250150 930625 TI GROUP AND SNECMA NEGOTIATE MERGING LANDINGGEAR UNITS SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH ENGINEERING COMPANY TI GROUP PLC AND FRENCH STATEOWNED JETENGINE MAKER SNECMA GROUP SAID THEY ARE IN NEGOTIATIONS TO MERGE THEIR DOWTY AND MESSIERBUGATTI LANDINGGEAR DIVISIONS CREATING A BUSINESS WITH SALES NEAR 300 MILLION 4418 MILLION A YEAR THE COMPANIES SAID THEY WILL TRY TO COMPLETE THE TRANSACTION LATER THIS YEAR SUBJECT TO REGULATORY APPROVAL THEY SAID THE ANTICIPATED MERGER WOULD BE AN EQUAL JOINT VENTURE TO BE NAMED MESSIERDOWTY IT WOULD BE MANAGED BY TI THE COMPANIES SAID WITH TONY EDWARDS CHIEF EXECUTIVE OF DOWTY AS MESSIERDOWTY'S CHAIRMAN AND CHIEF EXECUTIVE AND JEANPAUL BECHAT OF SNECMA AS DEPUTY CHAIRMAN TI GROUP ACQUIRED DOWTY AEROSPACE LANDING GEAR IN ITS 510 MILLION HOSTILE TAKEOVER OF THE UNITED KINGDOM'S DOWTY GROUP PLC IN JUNE 1992 DOWTY MAKES LANDING GEAR FOR ALL THE MAJOR AIRCRAFT MANUFACTURERS INCLUDING THE MAIN GEAR FOR THE LARGE AIRBUS A330/340 IT ALSO MAKES LANDING GEAR FOR MILITARY AIRCRAFT INCLUDING THE MCDONNELL DOUGLAS F18 FIGHTER JET DOWTY LANDING GEAR HAS 1400 EMPLOYEES IN GLOUCESTER UK AND PETERBOROUGH CANADA AS WELL AS MONTREAL AND TORONTO PARISBASED SNECMA IS 97 OWNED BY THE FRENCH GOVERNMENT AND IS THE WORLD'S FOURTHLARGEST AIRCRAFT ENGINE MAKER MESSIERBUGATTI WHICH IS 92 OWNED BY SNECMA AND 8 BY THE UK'S LUCAS INDUSTRIES PLC HAS 2700 EMPLOYEES 9306250149 930625 TSB GROUP OF BRITAIN POSTS 39 INCREASE IN PROFIT FOR 1ST HALF SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH COMMERCIAL BANK TSB GROUP PLC SAID PRETAX PROFIT ROSE 39 FOR THE FIRST HALF ENDED APRIL 30 PROFIT ROSE TO 80 MILLION 1178 MILLION FROM 77 MILLION A YEAR EARLIER BEFORE THE SALE OF BUSINESSES PROFIT FELL 43 THOUGH AND BADDEBT CHARGES ROSE 24 TO 205 MILLION FROM 165 MILLION THE BANK MAINTAINED ITS INTERIM DIVIDEND AT 315 PENCE A SHARE TSB SAID ITS PLAN TO FOCUS ON ITS MAIN BUSINESSES WHICH ARE RETAIL BANKING AND INSURANCE AND TO STEER AWAY FROM PROBLEM DIVISIONS SUCH AS INVESTMENT BANKING WAS GOING WELL OPERATING PROFIT ROSE 29 TO 132 MILLION FROM 102 MILLION AND CHARGES FOR PROBLEM LOANS FELL DURING THE LATEST PERIOD LOSSES IN TSB'S MORTGAGE DIVISION WERE HALVED TO 15 MILLION FOR THE FULL YEAR PROVISIONS FOR BAD AND DOUBTFUL DEBTS SHOULD SHOW A SIGNIFICANT DECLINE SAID SIR NICHOLAS GOODISON CHAIRMAN SIR NICHOLAS SAID IT WAS ENCOURAGING THAT TSB HAS SOLD A NUMBER OF PROPERTIES DURING THE FIRST HALF AT NO LESS THAN THEIR VALUES SET IN OCTOBER HILL SAMUEL BANK THE MERCHANT BANKING ARM RESPONSIBLE FOR THE BULK OF TSB'S COMMERCIAL LOAN PROBLEMS MORE THAN DOUBLED ITS PRETAX PROFIT TO 36 MILLION FROM 15 MILLION HILL SAMUEL'S BAD DEBTS LAST YEAR WERE TRANSFERRED TO TSB BANK'S NEWLY CREATED LOAN ADMINISTRATION UNIT HILL SAMUEL BANK NOW CONCENTRATES ON FEE AND COMMISSIONPRODUCING ACTIVITIES RATHER THAN LENDING THE BANK HAS A LOAN BOOK OF 23 BILLION ON WHICH THE BAD DEBT CHARGE FOR THE FIRST HALF WAS 6 MILLION 9306250148 930625 CANADIAN STEEL OUTPUT OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 285155 METRIC TONS IN THE WEEK ENDED SATURDAY A 4 INCREASE FROM 274309 TONS THE PREVIOUS WEEK BUT A 19 DECLINE FROM 290719 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 6711384 TONS A 37 INCREASE FROM 6470478 TONS A YEAR EARLIER 9306250147 930625 MCDONALD'S WILL OPERATE IN ISRAEL WITH LOCAL FRIES JERUSALEM REUTER MCDONALD'S CORP SAID IT WOULD OPEN IN ISRAEL SIDESTEPPING A BAN ON IMPORTING FROZEN POTATOES BY PRODUCING ITS SUPPLIES LOCALLY THE OAK BROOK ILL FASTFOOD CHAIN WHICH RAISED HACKLES BY REFUSING TO BUY DOMESTICALLY PRODUCED FROZEN FRENCH FRIES SAID LOCAL INVESTORS WILL BUILD A PLANT IN SOUTHERN ISRAEL TO PRODUCE FRIES THAT MEET THE CHAIN'S SPECIFICATIONS A COMPANY SPOKESWOMAN SAID THE ISRAELI CABINET MUST STILL APPROVE A MCDONALD'S REQUEST TO IMPORT FRIES UNTIL THE 5 MILLION PLANT IS OPERATIONAL IN MID1994 ISRAELI FARMERS HAVE ALREADY BEGUN GROWING A SPECIAL STRAIN OF MCDONALD'SAPPROVED POTATOES FOR FUTURE NEEDS THE FIRST OF THE CHAIN'S ISRAELI RESTAURANTS IS TO OPEN IN A TEL AVIVAREA MALL BEFORE THE END OF THE YEAR LIKE MANY RESTAURANTS IN ISRAEL ITS MENU WILL INCLUDE NONKOSHER DISHES AT LEAST FOUR MORE MCDONALD'S OUTLETS WILL FOLLOW IN 1994 THE SPOKESWOMAN SAID 9306250146 930625 WHO'S NEWS METROPOLITAN FINANCIAL CORP METROPOLITAN FINANCIAL CORP MINNEAPOLIS KAROL D EMMERICH PRESIDENT OF PARACLETE GROUP WAS ELECTED A DIRECTOR OF THIS FINANCIAL SERVICES HOLDING COMPANY INCREASING THE BOARD'S MEMBERSHIP TO EIGHT 9306250145 930625 WHO'S NEWS COVENTRY CORP COVENTRY CORP NASHVILLE TENN RICHARD H JONES 37 YEARS OLD WAS PROMOTED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS MANAGED HEALTHCARE CONCERN MR JONES MOST RECENTLY SERVED AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9306250144 930625 WHO'S NEWS PROMUS COS PROMUS COS MEMPHIS TENN JOHN M BOUSHY 38 YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT INFORMATION TECHNOLOGY AND CORPORATE MARKETING FOR THIS CASINO AND HOTEL OPERATOR MR BOUSHY SUCCEEDS CHRISTOPHER GIBBONS 44 WHO LEFT THIS MONTH TO BECOME VICE PRESIDENT OF INFORMATION TECHNOLOGY AT MICROSOFT CORP IN REDMOND WA HE MOST RECENTLY SERVED AS VICE PRESIDENT OF STRATEGIC MARKETING FOR THE HARRAH'S CASINO UNIT 9306250143 930625 INTERNATIONAL WHILE CHANGE ROARS THROUGH JAPANESE POLITICS REAL POWER STILL LIES IN HANDS OF BUREAUCRATS BY JACOB M SCHLESINGER AND CLAY CHANDLER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TURMOIL MAY BE SWEEPING JAPAN'S POLITICS BUT DON'T BE FOOLED THE CHANGES WON'T MATTER MUCH UNLESS THEY ALSO OVERTAKE THE NATION'S POWERFUL BUREAUCRATS THE FACELESS APPARATCHIKS WHO REALLY RUN THIS COUNTRY DAY TO DAY JAPAN'S ELITE MANDARINS HAVE WORKED CLOSELY WITH THE RULING LIBERAL DEMOCRATIC PARTY FOR FOUR DECADES CRAFTING LAWS THEN ENTRUSTING POLITICIANS WITH THE FORMALITY OF PUSHING THEIR HANDIWORK THROUGH PARLIAMENT FOR YEARS EXPERTS HAVE CITED THE ENTRENCHED BUREAUCRATS AS A CORNERSTONE OF JAPAN'S ECONOMIC SUCCESS NOW AN INTERNAL REVOLT HAS LEFT THE LDP IN DANGER OF LOSING CONTROL OF PARLIAMENT JAPAN'S BUREAUCRATS ARE BRACING FOR AN UNACCUSTOMED HORROR THE MESSINESS OF DEMOCRATIC DEBATE THIS IS TERRIBLE AN AGRICULTURE MINISTRY OFFICIAL MOANED FOR 40 YEARS TALKING TO THE LDP WAS THE WAY TO GET THE JOB DONE NOW WE HAVE TO CONSULT MEMBERS OF THE OPPOSITION PARTIES TOO CONSENSUSBUILDING IS GOING TO TAKE TWO OR THREE TIMES AS LONG AS IT USED TO STILL MOST DENIZENS OF KASUMIGASEKI THE GRAY TOKYO DISTRICT WHERE THE MINISTRIES ARE CLUSTERED FIGURE THEY WILL WEATHER THE POLITICAL STORM INDEED MANY EXPECT TO THRIVE AMID THE CHAOS BY PLAYING RIVAL PARTIES OFF AGAINST EACH OTHER CONVENTIONAL WISDOM AT THE IMPORTANT MINISTRIES HAS IT THAT THE LDP WILL LOSE ITS MAJORITY IN JULY 18 ELECTIONS TO BE REPLACED BY A FRACTIOUS COALITION GOVERNMENT OF LDP DEFECTORS AND OTHER OPPOSITION PARTIES SUCH A GOVERNMENT PARALYZED BY DISAGREEMENT MIGHT LAST ONLY A FEW MONTHS IT'S LIKE WATCHING A BASEBALL GAME DOWN ON THE FIELD ONE VETERAN AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID WITH DETACHMENT IF ANYTHING WE GET BROADER MANEUVERABILITY THE BUREAUCRAT WHO LIKE ALL THOSE INTERVIEWED ASKED NOT TO BE IDENTIFIED EXPLAINS THE POWER GAME THIS WAY UNDER THE CURRENT SYSTEM IF THE LDP WANTS INFORMATION WE ARE COMPELLED TO GIVE IT TO THEM IF WE DON'T SOONER OR LATER THEY'LL FIND OUT BECAUSE THEY STAY IN POWER SO LONG BUT A WEAKENED LDP MAY GET SHORT SHRIFT WE WON'T TELL THEM A LIE HE SAYS BUT WE WON'T GIVE THEM THE INFORMATION WE DON'T WANT TO BUT THIS NEW POWER FOR THE BUREAUCRATS MAY HURT JAPAN'S ECONOMY AND THUS ECONOMIES AROUND THE WORLD THE BIG FEAR IS THAT TIGHTFISTED FINANCE MINISTRY OFFICIALS WILL BE LEFT TENDING THE TILLER OF JAPAN'S ECONOMY WHILE POLITICIANS SCUFFLE ON THE BRIDGE WITHOUT STRONG POLITICAL LEADERS TO PUSH THROUGH BOLDER STIMULUS POLICIES SOME EXPERTS WARN JAPAN'S ECONOMY COULD DRIFT FOR YEARS AND WHILE BUREAUCRATS SET MANY POLICIES POLITICIANS ARE OFTEN NECESSARY TO BROKER COMPROMISES BETWEEN COMPETING MINISTRIES AND TO FORCE THE TRADE SACRIFICES DEMANDED BY THE US A MORE POWERFUL BUREAUCRACY MAY MAKE IT TOUGHER FOR THE US IN NEGOTIATIONS THE REAL PROBLEMS WILL BE MARKET ACCESS AND DEREGULATION SAYS ECONOMIST NAOKI TANAKA THE POWER CENTER THE ALLIANCE BETWEEN THE LDP AND THE BUREAUCRACY HAS BEEN DESTROYED WITH THE SUMMIT OF LEADERS OF THE INDUSTRIALIZED NATIONS SCHEDULED TO START JULY 7 IN TOKYO AT WHICH JAPAN'S ARE EXPECTED TO COME UNDER RENEWED PRESSURE TO CURB THE COUNTRY'S HUGE TRADE SURPLUS THE LDP'S UNTIMELY DISINTEGRATION ALMOST SEEMS TO SOME CRITICS TO BE A BUREAUCRATIC PLOT I'M ENORMOUSLY SUSPICIOUS SAYS CHALMERS JOHNSON A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO AND AN ADVOCATE OF A TOUGHER US LINE AGAINST JAPAN JUST AS JAPAN WAS ABOUT TO BE PUT UNDER HEAVY PRESSURE THEY CAN SAY YOU MUST LET US SORT THIS OUT' MR JOHNSON SAYS THEY CAME UP WITH A GIMMICK WHICH WILL ALSO FURTHER THE PRETENSE THAT JAPAN IS A PARLIAMENTARY DEMOCRACY WHATEVER THE CASE THE LDP NO LONGER SERVES AS THE STABLE CENTER OF A COMPLEX WEB OF RELATIONSHIPS WOVEN IN THE POSTWAR ERA THE BUSINESS COMMUNITY LONG SUPPORTIVE AND DEPENDENT ON THE ONEPARTY STATE HAS ALSO BEEN THROWN OFF BALANCE THE POLITICAL VACUUM ISN'T GOOD FOR JAPANESE BUSINESS SAYS GAISHI HIRAIWA CHAIRMAN OF KEIDANREN JAPAN'S LARGEST BUSINESS TRADE GROUP A NEWSPAPER POLL OF 52 BUSINESS EXECUTIVES FOUND THAT 80 FEAR THE POLITICAL TURMOIL WILL SLOW RECOVERY BUT SOME HAILED THE POSSIBILITY OF CHANGE IT SEEMS TO ME THE MAJORITY OF TOP EXECUTIVES FEEL CHANGE IS OVERDUE SAYS TOSHIAKI YASUDA A SPOKESMAN FOR NISSAN MOTOR CO PEOPLE FEEL WE NEED SOME STRONG POLITICAL LEADERSHIP THAT CAN ONLY BE PROVIDED BY A GOVERNMENT NOT RUN BY BUREAUCRATS BUT BY REAL POLITICIANS TSUTOMU HATA THE HEAD OF THE NEW ANTILDP PARTY WHO SPENT MUCH OF YESTERDAY NEGOTIATING WITH OPPOSITION PARTIES ON FORMING A COALITION ALSO SPEAKS OF THE EVIL OF BUREAUCRATIC CONTROL INDEED DISTRUST OF THE BUREAUCRACY IS A COMMON THEME AMONG THE NEW ANTILDP FORCES THE BUREAUCRATS HAVE GROWN IN ODD SYMBIOSIS WITH THE LDP AND FOR 40 YEARS EACH HAS HELPED THE OTHER STAY IN POWER UNLIKE US MEMBERS OF CONGRESS JAPANESE DIET MEMBERS DON'T HAVE THEIR OWN STAFF TO DO RESEARCH OR DRAFT BILLS AIDES FOCUS ON FUNDRAISING AND CAMPAIGNING THINKING IS LEFT TO THE MINISTRIES WE MAKE THE LAW ENFORCE THE LAW AND JUDGE THE LAW SAYS ONE BUREAUCRAT BUREAUCRATS WORK ALMOST EXCLUSIVELY FOR THE LDP AND SHUN OPPOSITION PARTIES ONE MINISTRY OFFICIAL SAYS HE HAS ALMOST DAILY CONTACT WITH THE LDP AND MAY SEE AN OPPOSITION PARTY MEMBER TWICE A YEAR FINANCE MINISTRY OFFICIALS TOLERATE PORK BARREL PROJECTS IN THE DISTRICTS OF FRIENDLY LDP POLITICIANS BUREAUCRATS ALSO SOMETIMES ENCOURAGE INDUSTRIES UNDER THEIR CONTROL TO SUPPORT LDP CANDIDATES IN ELECTIONS EVEN THOUGH THAT'S AGAINST THE LAW ONE MITI OFFICIAL SAYS MINISTRY REGIONAL BUREAUS OFTEN ORGANIZE FUNDRAISING MEETINGS BETWEEN BUSINESSES AND LOCAL CANDIDATES THE LDP IN TURN MOSTLY LEAVES THE BUREAUCRACY ALONE LDP PRIME MINISTERS APPOINT CABINET MEMBERS TO RUN MINISTRIES BUT THOSE OFFICIALS SERVE ONLY FOR A SHORT PERIOD NORMALLY DON'T TRY TO SHAPE POLICY AND USUALLY BECOME THE MOUTHPIECE FOR THEIR MINISTRY NOTHING THAT REALLY MATTERS WILL CHANGE IF THE GOVERNMENT FALLS A FINANCE MINISTRY OFFICIAL SAYS OUR POLICIES WILL BE THE SAME THE LDP ALSO ENCOURAGES BUREAUCRATS TO RUN FOR PARLIAMENT AS LDP MEMBERS A FIFTH OF ALL DIET MEMBERS WERE BUREAUCRATS PRIME MINISTER KIICHI MIYAZAWA ROSE THROUGH THE FINANCE MINISTRY BUT MR HATA PROMISES A NEW ERA OF FULL DEBATE IN PARLIAMENT AND REAL POLICY DISAGREEMENTS BETWEEN HIS PARTY AND THE LDP HOW CAN THE SAME MINISTRIES WRITE BILLS FOR TWO COMPETING PARTIES I CAN'T PREDICT SAYS A MITI OFFICIAL THIS IS A FIRST EXPERIENCE FOR US OTHERS DON'T THINK THAT'S A PROBLEM SOME BUREAUCRATS ARE CONFIDENT THAT IN THE END THEY WILL MAINTAIN CONTROL WHEN THE MINISTRIES PROPOSE THEIR PLANS TO THE TWO PARTIES ONE OFFICIAL INSISTS I DON'T THINK THEY'LL DISAGREE 9306250142 930625 MAJOR ACCEPTS RESIGNATION OF MINISTER DUE TO SCANDAL LONDON BRITISH PRIME MINISTER JOHN MAJOR HAS ACCEPTED THE RESIGNATION OF MICHAEL MATES A JUNIOR MINISTER FOR NORTHERN IRELAND OVER HIS PART IN THE RECENT SCANDAL ABOUT FUGITIVE BUSINESSMAN ASIL NADIR THE PRIME MINISTER TOLD THE HOUSE OF COMMONS OF THE RESIGNATION DURING A REGULAR QUESTION AND ANSWER QUESTION MR MAJOR SAID HE REGRETTED HAVING TO ACCEPT MR MATES'S RESIGNATION AS THE MINISTER HAD DONE NOTHING WRONG MR MATES HAD COME UNDER PRESSURE TO RESIGN AFTER PRESS REVELATIONS ABOUT HIS FRIENDSHIP WITH MR NADIR AND HIS ATTEMPTS TO INTERVENE IN MR NADIR'S CASE MR NADIR WAS CHAIRMAN OF POLLY PECK INTERNATIONAL PLC WHICH COLLAPSED WITH 14 BILLION 206 BILLION OF DEBT IN OCTOBER 1990 HE WAS AWAITING TRAIL FOR FRAUD BEFORE HE FLED TO CYPRUS EARLIER THIS YEAR ALLEGATIONS SURFACED LAST WEEK THAT HE ALSO HAD MADE POLITICAL CONTRIBUTIONS TO BRITAIN'S CONSERVATIVE PARTY PAID THROUGH AN OFFSHORE ACCOUNT USED BY MR NADIR TO SIPHON OFF FUNDS FROM POLLY PECK A FOOD AND LEISURE CONCERN A PARTY SPOKESMAN SAID THE FUNDS WOULD BE RETURNED TO POLLY PECK LIQUIDATORS IF ALLEGATIONS THEY WERE STOLEN CAN BE PROVED MR MATES ISN'T A MEMBER OF THE PRIME MINISTER'S CABINET BUT HIS RESIGNATION IS EXPECTED TO FURTHER WEAKEN MR MAJOR'S POSITION WHICH HAS BEEN UNDERMINED BY SCANDALS IN RECENT MONTHS 9306250141 930625 BOEING PROMOTES RENOUARD SEATTLE BOEING CO NAMED EDWARD J RENOUARD 55 YEARS OLD AS VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S WIDEBODYJET OPERATIONS AT EVERETT WASH MR RENOUARD WHO HAS SERVED MOST RECENTLY AS A VICE PRESIDENT OF THE COMPANY'S PHILADELPHIABASED HELICOPTERS UNIT SUCCEEDS JAMES T JOHNSON MR JOHNSON RESIGNED THIS WEEK TO TAKE OVER AS PRESIDENT OF COMMERCIALJET ENGINE OPERATIONS AT THE PRATT & WHITNEY UNIT OF UNITED TECHNOLOGIES CORP 9306250140 930625 WHO'S NEWS NEWS CORP NEWS CORP NEW YORK THIS COMPANY'S NEWS AMERICA PUBLISHING UNIT NAMED JOSEPH F BARLETTA PRESIDENT AND CHIEF EXECUTIVE OF TV GUIDE MAGAZINE MR BARLETTA 56 YEARS OLD WAS FORMERLY SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER FOR THOMSON CORP'S THOMSON NEWSPAPERS CORP HE SUCCEEDS JOSEPH CECE WHO WAS RECENTLY PROMOTED TO EXECUTIVE VICE PRESIDENT OF NEWS AMERICA 9306250139 930625 USX'S STEEL GROUP TO ISSUE STOCK TO GAIN UP TO 4113 MILLION PITTSBURGH USX CORP'S US STEEL GROUP FILED FOR APPROVAL TO ISSUE NINE MILLION TO 10 MILLION SHARES OF STOCK AN OFFERING THAT WOULD INCREASE ITS SHARES OUTSTANDING BY AS MUCH AS 17 AND RAISE AS MUCH AS 4113 MILLION AT CURRENT PRICES A SPOKESMAN FOR THE STEELMAKER SAID THAT THE COMPANY PLANNED TO USE THE PROCEEDS FOR GENERAL BUSINESS PURPOSES HE SAID PERHAPS THE FUNDS MIGHT BE USED TO COVER A COURTORDERED ANTITRUST SETTLEMENT ESTIMATED AT 600 MILLION INCLUDING INTEREST AGAINST ITS FORMER BESSEMER & LAKE ERIE RAILROAD CO UNIT THE STEELMAKER IS APPEALING THAT RULING THE COMPANY PREVIOUSLY SAID IT WOULD TAKE A SECONDQUARTER CHARGE OF 400 MILLION BEFORE TAXES TO COVER DAMAGES INCURRED FROM THE LAWSUIT FILED IN 1982 WHICH CHARGED THAT B&LE AND OTHER RAILROADS MONOPOLIZED DOCK HANDLING AND INLAND TRANSPORTATION OF IRON ORE TO STEEL MILLS FROM THE MID1950S THROUGH THE EARLY 1980S IN MAY THE US APPEALS COURT IN PHILADELPHIA AFFIRMED A LOWER COURT'S 1991 DAMAGE RULING AGAINST B&LE STANDARD & POOR'S SAID IT AFFIRMED ITS RATING ON US STEEL'S 8 BILLION OF DEBT BUT SAID THE RATING OUTLOOK REMAINS NEGATIVE REFLECTING CONCERNS ABOUT THE EXTENT TO WHICH USX'S FINANCIAL PERFORMANCE WILL REBOUND FROM RECENT POOR LEVELS AND THE DEGREE TO WHICH THE COMPANY WILL BE ABLE TO REDUCE ITS BURDENSOME DEBT LOAD HOWEVER THE RATING AGENCY NOTED THAT THE EQUITY ISSUE WOULD MITIGATE THE POTENTIAL IMPACT OF THE RULING THE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION CALLS FOR THE ISSUANCE OF NINE MILLION SHARES WITH AN OVERALLOTMENT OPTION OF AN ADDITIONAL ONE MILLION SHARES LEHMAN BROTHERS GOLDMAN SACHS & CO AND SALOMON BROS ARE THE LEAD UNDERWRITERS IN THE 1992 SECOND QUARTER US STEEL HAD A PROFIT OF 6 MILLION OR 10 CENTS A SHARE ON SALES OF 127 BILLION 9306250138 930625 ROMANIA WILL SELL STAKE IN PETROMIN SHIPPING COMPANY BY JENNY PARIS SPECIAL TO THE WALL STREET JOURNAL ATHENS GREECE ROMANIA IS SELLING CONTROL OF ITS PETROMIN SHIPPING COMPANY TO A GREEK CONCERN MARKING A MAJOR STEP IN BUCHAREST'S PRIVATIZATION EFFORTS FORUM MARITIME SA HAS AGREED TO PAY 650 MILLION TO BUY A 51 STAKE IN THE ROMANIAN STATE COMPANY AND WILL NOW RUN PETROMIN'S FLEET OF 106 VESSELS ACCORDING TO A SENIOR PETROMIN OFFICIAL WHO REQUESTED ANONYMITY THE TRANSACTION WAS ANNOUNCED IN BUCHAREST WEDNESDAY BY ROMANIAN PRESIDENT ION ILIESCU IT IS ONE OF THE BIGGEST CASH INJECTIONS IN EASTERN EUROPE SINCE THE FALL OF COMMUNISM THE PETROMIN OFFICIAL SAID UNDER THE CONTRACT TERMS HE SAID FORUM MARITIME WILL PAY 355 MILLION IN CASH TO INCREASE PETROMIN'S SHARE CAPITAL AND THE REMAINDER WILL BE INVESTED TO MODERNIZE THE COMPANY'S OUTDATED INFRASTRUCTURE PETROMIN WILL BUILD 20 NEW SHIPS WHILE ITS EXISTING FLEET WILL BE UPGRADED TO REACH MODERN WESTERN STANDARDS A NUMBER OF OTHER MAINLY GREEK SHIPPING COMPANIES HAD EXPRESSED INTEREST IN FORMING ALLIANCES WITH PETROMIN BUT FORUM MARITIME WAS THE ONLY ONE THAT OFFERED TO BUY ITS SHARES AND TAKE OVER THE MANAGEMENT ANOTHER 30 STAKE WILL BE SOLD TO PETROMIN'S 6800 SEAMEN ON PREFERENTIAL TERMS AND THE REMAINING 19 WILL STAY IN THE ROMANIAN GOVERNMENT'S HANDS THE PETROMIN OFFICIAL SAID THE DEAL UNDERSCORED BUCHAREST'S DETERMINATION TO MOVE TOWARD A MARKET ECONOMY AND WAS EXPECTED TO ACCELERATE THE GOVERNMENT'S SLUGGISH PRIVATIZATION PROGRAM FORUM MARITIME WITH 12 SHIPS OF VARYING SIZES ALREADY HAS A STRONG PRESENCE IN EASTERN EUROPEAN MARKETS SHIPPING ANNUALLY TWO MILLION TONS OF GRAIN AND GRAIN PRODUCTS TO THE COMMONWEALTH OF INDEPENDENT STATES FORUM MARITIME'S MOVE WILL PROVE THAT ROMANIA IS NO LONGER A HIGHRISK AREA FOR INVESTMENTS THE OFFICIAL SAID HE ADDED THAT PETROMIN'S PRIVATIZATION HAD ALREADY PROMPTED THE INTEREST OF OTHER GREEK DUTCH AND NORWEGIAN SHIPOWNERS IN ROMANIA'S TWO OTHER STATE SHIPPING COMPANIES NAVROM AND ROMLINE WITH A TOTAL OF 280 CARGO VESSELS ALSO ON SALE ROMANIA HAS NOT ATTRACTED AS MANY INVESTORS AS HUNGARY OR POLAND BUT WE BELIEVE IT HAS A GOOD PROFIT POTENTIAL THE COUNTRY IS RICH IN OIL AND OTHER RAW MATERIALS HAS CHEAP LABOR AND A RELATIVELY LOW FOREIGN DEBT SAID A FORUM MARITIME OFFICIAL 9306250137 930625 WHO'S NEWS AIRLINES' WOES MAKE PUSHING FOR LABOR HARD BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JOHN PETERPAUL THE TOP AIRLINE NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS RECALLS A REBUKE EARLIER THIS MONTH FROM A UNION MEMBER IN ATLANTA WHAT EVER HAPPENED TO PUT 'EM OUT OF BUSINESS' PETERPAUL TO SOME OF THE 24000 UNION MEMBERS AT NORTHWEST AIRLINES IT WAS AN APPROPRIATE QUESTION MR PETERPAUL EARNED A REPUTATION OVER THE PAST DECADE AS A BLUNT HARDLINE NEGOTIATOR WHO TOOK EMPLOYERS TO THE BRINK IN CONTRACT TALKS THIS TIME THOUGH HE WAS RECOMMENDING AN AGREEMENT THAT WOULD CUT MACHINISTS' WAGES BY 6 TO 12 FOR THE NEXT THREE YEARS TO HELP KEEP NORTHWEST OUT OF BANKRUPTCY PROCEEDINGS I'M WALKING A TIGHTROPE LAMENTED MR PETERPAUL THE MACHINISTS' TRANSPORTATION VICE PRESIDENT AS THAT CONCESSIONARY AGREEMENT WITH THE ST PAUL MINN UNIT OF WINGS HOLDINGS INC WENT DOWN TO DEFEAT EARLIER THIS MONTH BUT THE COMPANY IS ON A TIGHTROPE TOO AT A MEETING TODAY NORTHWEST'S BOARD IS EXPECTED TO CONSIDER WHEN TO FILE FOR BANKRUPTCYLAW PROTECTION IF IT DOESN'T GET AGREEMENTS WITH ITS UNIONS TO CUT SOME 886 MILLION IN LABOR COSTS OVER THREE YEARS NORTHWEST MANAGEMENT HAS BEEN NEGOTIATING WITH THE PILOTS' UNION THIS WEEK AS THE AIRLINE INDUSTRY STRUGGLES TO PARE COSTS AND REGAIN ITS FOOTING UNION LEADERS LIKE MR PETERPAUL ARE GETTING BOXED IN IF THEY FAIL TO GIVE GROUND AND HELP ONCESTRONG AIRLINES LIKE NORTHWEST THROUGH TOUGH TIMES THEY RISK MORE ONEROUS CONCESSIONS AND JOB LOSSES BUT WHEN THEY DO GIVE GROUND MANY UNION MEMBERS ARE ANGRY AND THERE'S NO GUARANTEE THE FIX WILL BE PERMANENT AT NORTHWEST SOME UNION MEMBERS HAVE SENT A PETITION TO THE MACHINISTS' PRESIDENT GEORGE KOURPIAS COMPLAINING THAT MR PETERPAUL IS OUT OF TOUCH THE BAD GUY NOW IS PETERPAUL SAYS MR PETERPAUL 58 YEARS OLD WHO GOT HIS START IN 1959 AS A MECHANIC FOR THE FORMER MOHAWK AIRLINES BUT HE NONETHELESS DEFENDS THE NORTHWEST AGREEMENT AS THE BEST DEAL UNDER VERY DIFFICULT CIRCUMSTANCES THE COMPANY HAS ALREADY GIVEN MR PETERPAUL AND OTHER LABOR LEADERS COPIES OF FILINGS IT SAYS IT WILL MAKE IN A BANKRUPTCY PROCEEDING THEY INDICATE THE COMPANY WOULD SEEK ABOUT DOUBLE THE AMOUNT OF LABORCOST CUTS IT IS TRYING TO NEGOTIATE OUTSIDE OF BANKRUPTCY MR PETERPAUL'S BALANCING ACT IS MADE EVEN MORE DIFFICULT BY THE FACT THAT HE IS ONE OF TWO LABOR REPRESENTATIVES ON A NATIONAL COMMISSION APPOINTED BY PRESIDENT CLINTON AND CONGRESS TO FIGURE OUT HOW TO HELP THE AILING AIRLINE AND AEROSPACE INDUSTRIES THE 15MEMBER PANEL IS SUPPOSED TO ANNOUNCE ITS RECOMMENDATIONS IN AUGUST WHILE SOME QUESTION WHETHER THE AIRLINE COMMISSION CAN DO ANYTHING TO HELP A BUSINESS THAT HAD MORE THAN 10 BILLION IN LOSSES OVER THE PAST THREE YEARS ITS MEMBERS AND ITS CHAIRMAN FORMER VIRGINIA GOV GERALD BALILES VOW TO COME UP WITH CONCRETE PROPOSALS MR PETERPAUL'S OWN IDEAS FOR MAKING THE INDUSTRY PROFITABLE DON'T HAVE MUCH TO DO WITH A FREE MARKET HE SUGGESTS ZONES OF REASONABLE FARES TO PUT A FLOOR ON PRICECUTTING CREDITS FOR NEW AIRPLANES AND INCENTIVES TO TAKE OLDER PLANES OUT OF SERVICE AND A GRACE PERIOD FROM COMPETITION FOR AIRLINES TAKING ON NEW ROUTES BUT HE ACKNOWLEDGES THAT MANY OF THESE IDEAS WON'T FLY AT A COMMISSION WHOSE MEMBERS INCLUDE FRIENDS AND FOES OF REGULATION AND SOME PEOPLE IN BETWEEN I COULD BE AN OBSTINATE SOB AND NOT AGREE WITH ANYTHING HE SAYS INSTEAD HE VOWS TO BE PART OF A COMPROMISE THAT CAN HELP THE INDUSTRY REGAIN ITS FOOTING SOUTHWEST AIRLINES CHAIRMAN HERBERT KELLEHER ANOTHER COMMISSION MEMBER AGREES THAT SOME USEFUL RECOMMENDATIONS WILL EMERGE AND HE CREDITS MR PETERPAUL AND J RANDOLPH BABBITT PRESIDENT OF THE AIR LINE PILOTS ASSOCIATION WITH RAISING QUESTIONS ABOUT PROTECTING US JOBS MR KELLEHER AS THE LEADER OF THE ONLY MAJOR CARRIER TO EARN MONEY AND AVOID LAYOFFS SAYS IT'S A PERSPECTIVE HE LACKS MR PETERPAUL IS WORRIED ABOUT HIS OWN FURLOUGH JOKES A FELLOW COMMISSION MEMBER BUT MR PETERPAUL'S JOB IS PROBABLY SAFE MR KOURPIAS THE UNION PRESIDENT GIVES HIM WIDE LATITUDE IN OVERSEEING THE AFFAIRS OF SOME 200000 MEMBERS IN THE AIRLINE RAILROADTRUCKING AND AUTOREPAIR BUSINESSES MR PETERPAUL SAYS HE RECENTLY TURNED DOWN THE NO 2 JOB IN THE UNION SECRETARYTREASURER BECAUSE HE DIDN'T WANT TO GIVE UP HIS AIRLINE RESPONSIBILITIES WHEN THE INDUSTRY IS SUCH A MESS BUT HE WORRIES ABOUT THE JOBS OF SOME 100000 MEMBERS IN THE AIRLINE INDUSTRY INCLUDING THAT OF HIS SON A MECHANIC AT NORTHWEST AIRLINES NOW RECALLED FROM A LAYOFF HE BELIEVES THE RESTRUCTURING IN WHICH LARGE AIRLINES CUT JOBS TO CUT COSTS HAS A LONG WAY TO GO HE ALSO WORRIES THAT THE CURRENT FARE WAR INDICATES THE INDUSTRY LACKS THE DISCIPLINE TO PRICE ITS SEATS PROFITABLY IF PEOPLE THINK THAT EVEN WITH THE BEST COMMISSION RECOMMENDATIONS THERE'S A MIRACLE COMING THEY'RE CRAZY HE SAYS MR PETERPAUL COULD USE A MIRACLE AT NORTHWEST WHERE HE AND TEAMSTERS PRESIDENT RON CAREY FOUND THEMSELVES ADVOCATING CONCESSIONS THEY HOPED WOULD GIVE THE CARRIER BREATHING ROOM TO MAKE A COMEBACK MR CAREY WAS ELECTED PRESIDENT OF THE TEAMSTERS PARTLY BECAUSE HE CAMPAIGNED AGAINST SUCH GIVEBACKS MANY EMPLOYEES ARE ANGRY AT PARTOWNERS ALFRED CHECCHI AND GARY WILSON WHO ENGINEERED THE 1989 LEVERAGED BUYOUT OF WHAT WAS THEN A FINANCIALLY STRONG CARRIER SOME INSIST THE COMPANY'S LENDERS SHOULD GIVE THE COMPANY MORE RELIEF ON ITS HUGE DEBT PAYMENTS WE DON'T THINK THE COMPANY HAS DEALT SUFFICIENTLY WITH THE DEBT SAYS STEVE MACFARLANE A 13YEAR MACHINIST EVEN IF NORTHWEST'S PILOTS REACH AN AGREEMENT WITH THE AIRLINE ON THEIR CONCESSIONS NATIONAL AND LOCAL MACHINIST OFFICIALS HAVE TO FIND A WAY TO CHANGE THEIR AGREEMENT SO THAT THEIR MEMBERS CAN VOTE AGAIN THAT WILL BE DIFFICULT NORTHWEST CHIEF EXECUTIVE JOHN DASBURG TOLD LOCAL MACHINIST OFFICIALS THIS WEEK THAT IT'S TOO LATE TO MAKE SUBSTANTIAL CHANGES WITHOUT A DEAL THAT HIS MEMBERS CAN ACCEPT MR PETERPAUL FINDS HIS OWN NEGOTIATING PHILOSOPHY IN JEOPARDY PUSH IT TO THE END OF THE TABLE HE SAYS MOVING HIS FINGER TO THE EDGE OF A CONFERENCE TABLE BUT DON'T LET IT FALL OFF DRAWINGS OF CITICORP CHIEF EXECUTIVE OFFICER JOHN REED AND JOHN PETERPAUL THE TOP AIRLINE NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS WERE INADVERTENTLY SWITCHED IN FRIDAY'S EASTERN EDITION MR REED'S PICTURE SHOULD HAVE ACCOMPANIED A PAGEONE ARTICLE ON CITICORP WHILE MR PETERPAUL'S SHOULD HAVE APPEARED WITH A WHO'S NEWS ARTICLE ON THE MARKETPLACE PAGE 9306250136 930625 ROGERS COMMUNICATIONS NOTES TORONTO ROGERS COMMUNICATIONS INC SAID IT PLANS TO REDEEM AUG 16 ALL OF ITS LIQUID YIELD OPTION NOTES FOR ABOUT 1607 MILLION THE TELECOMMUNICATIONS CONCERN SAID THE REDEMPTION PRICE FOR THE NOTES IS 22355 PER 1000 PRINCIPAL AMOUNT AT MATURITY FOR A TOTAL OF ABOUT 1607 MILLION ABOUT 7188 MILLION PRINCIPAL AMOUNT OF THE LYONS IS OUTSTANDING THE COMPANY SAID ROGERS SAID THE OWNERS OF THE NOTES CAN CONVERT THEIR HOLDINGS INTO CLASS B NONVOTING SHARES AT ANY TIME UP TO THE CLOSE OF BUSINESS ON THE REDEMPTION DATE ON THE BASIS OF 1987 ROGERS CLASS B SHARES PER 1000 PRINCIPAL AMOUNT AT MATURITY OF THE NOTES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROGERS' CLASS B SHARES CLOSED AT 19 CANADIAN DOLLARS US1484 A SHARE UNCHANGED AT LAST REPORT THE COMPANY HAD 2091 MILLION CLASS B SHARES OUTSTANDING ROGERS ISSUED THE 20YEAR NOTES IN 1991 9306250135 930625 TRANSFIELD GETS CONTRACT SYDNEY AUSTRALIA TRANSFIELD CONSTRUCTION PTY AN AUSTRALIAN CONSTRUCTION CONCERN SAID IT WON A CONTRACT WITH JAPANESE PARTNERS TOYO ENGINEERING CORP AND MARUBENI CORP TO BUILD AN AMMONIA FEEDSTOCK PLANT IN CHINA AMMONIA FEEDSTOCK IS THE BASE ELEMENT USED IN PRODUCING FERTILIZER TRANSFIELD SAID THE COST OF BUILDING THE PLANT AT LANZHOU IN GANSU PROVINCE WILL BE THE EQUIVALENT OF 215 MILLION AUSTRALIAN DOLLARS US145 MILLION THE COMPANY SAID THE CONTRACT WAS AWARDED BY THE CHINESE GOVERNMENTOWNED CHINA PETROCHEMICAL INTERNATIONAL CO 9306250134 930625 ECONOMY RECENT LABOR CONTRACT RESULTS PORTEND A ROUGH BARGAINING YEAR FOR UNIONS BY KEVIN G SALWEN AND DANA MILBANK STAFF REPORTERS OF THE WALL STREET JOURNAL IT'S SHAPING UP AS ANOTHER ROUGH BARGAINING YEAR FOR UNIONS IN NEGOTIATION AFTER NEGOTIATION UNIONS ARE EMERGING WITH SKIMPY PAY INCREASES OFTEN SLIPPING BEHIND THE CURRENT INFLATION RATE OF 32 HEALTHCARE GIVEBACKS ARE BECOMING STANDARD AS AN ALTERNATIVE TO PAYING A HIGHER SHARE MANY UNIONS ARE AGREEING TO LIMITS ON WORKERS' ABILITY TO CHOOSE THEIR OWN DOCTOR THE TWO BRIGHT SPOTS FOR UNIONS PENSIONS WHERE INCREASES ARE COMING FROM MANY COMPANIES' OVERFUNDED PLANS AND SUCCESS AT SLOWING THE PACE OF JOB CUTS BECAUSE OF TECHNOLOGY AND PLANT CLOSINGS BUT THE LAYOFF ISSUE IS TOUGH BECAUSE THE PRESSURE COMES FROM THE BROADER ECONOMY UNIONS ARE MAKING GAINS BUT CAN'T POSSIBLY STEM THE EROSION OF EMPLOYMENT AT THE BARGAINING TABLE SAYS GREG TARPINIAN EXECUTIVE DIRECTOR OF THE LABOR RESEARCH ASSOCIATION A UNIONORIENTED ECONOMIC THINK TANK AS A RULE THERE ARE HARDLY ANY PAY INCREASES GOING ON PERIOD SAYS DOUGLAS KUHNS AN ECONOMIST WITH THE MACHINISTS UNION INSTEAD EMPLOYERS ARE OFFERING BONUSES IN LIEU OF PAY INCREASES THAT BECOME PART OF THE BASE WAGE AND COMPOUND IN FUTURE YEARS HEALTH CARE HE ADDS IS GOING TO THE BOTTOM ALL OVER THE PLACE LAST YEAR FOR THE FIRST TIME SINCE 1988 NEW CONTRACTS PROVIDED SMALLER WAGE INCREASES THAN THE CONTRACTS THEY WERE REPLACING NOW SAYS ALVIN BAUMAN AT THE BUREAU OF LABOR STATISTICS I DON'T SEE ANYTHING ON THE HORIZON THAT SAYS THINGS ARE GOING TO GET VERY MUCH BETTER IN THE FIRST QUARTER WAGE BOOSTS FOR THE FIRST YEAR OF CONTRACTS AVERAGED 28 THE BUREAU SAYS FOR THE LIFE OF THE CONTRACT THOSE INCREASES WILL AVERAGE 31 BY COMPARISON RAISES IN THE CONTRACTS THEY REPLACED WERE 44 FOR THE FIRST YEAR AND 39 ANNUALLY OVER THE LIFE OF THE ACCORD SEVERAL MAJOR CONTRACTS ARE IN THE NEGOTIATING PHASE NOW THE UNITED AUTO WORKERS EARLIER THIS WEEK OPENED TALKS WITH GENERAL MOTORS CORP THAT WILL SET THE TONE FOR THE OTHER TWO MAJOR CAR COMPANIES THE TEAMSTERS UNION IS WORKING ON A NEW CONTRACT WITH ITS LARGEST EMPLOYER UNITED PARCEL SERVICE AND THE MINEWORKERS ARE STAGING SELECTIVE STRIKES AT A STRING OF MINES TO PRESS THEIR CASE FOR A BETTER DEAL THE CORE PROBLEM FOR ORGANIZED LABOR IS A NAGGING ONE INTERNATIONAL COMPETITION IS HURTING THE SLUGGISH MANUFACTURING SECTOR WHERE MOST UNIONS OPERATE MEANWHILE UNIONIZED COMPANIES IN SERVICE INDUSTRIES FACE NONUNIONIZED COMPETITION WHICH IN THE RECESSION WERE FORCED TO HOLD THE LINE OR CUT PRICES AND WAGES UNIONS ARE NOT IN A POSITION TO MAKE STRONG DEMANDS SAYS SAR LEVITAN DIRECTOR OF THE CENTER OF SOCIAL POLICY STUDIES AT GEORGE WASHINGTON UNIVERSITY SO THEY SETTLE FOR MINIMAL WAGE INCREASES AND THEY FIGHT FOR WHAT WE USED TO CALL FRINGE BENEFITS ECONOMIST AUDREY FREEDMAN WHO RUNS A MANAGEMENTCONSULTING FIRM IN NEW YORK CALLS THE AGREEMENTS HOLDING ACTIONS FOR ORGANIZED LABOR IF THERE WERE NO UNIONS THESE THINGS WOULD BE LOST SOONER SO THE UNIONS CAN SAY THEY'VE SLOWED DOWN THE LOSSES THE ECONOMY IS CLEARLY HELPING THE COMPANIES' BARGAINING POSITION THE 325 WORKERS 25 OF WHOM ARE ON LAYOFF AT PPG INDUSTRIES INC'S FLATGLASS PLANT IN MOUNT ZION ILL AGREED TO SCALE BACK THEIR HEALTHCARE COVERAGE IN FAVOR OF A COSTSHARING PLAN THE UNION REPRESENTED BY THE ALUMINUM BRICK & GLASS WORKERS ALSO AGREED TO LUMPSUM PAYMENTS IN LIEU OF HOURLY PAY INCREASES FIGHTING THE COMPANY APPARENTLY DOESN'T HELP MUCH AT PPG'S FLATGLASS PLANT IN FRESNO CALIF THE 200 WORKERS STRUCK FOR TWO WEEKS OVER HEALTH CARE BUT ACCEPTED A PLAN EARLIER THIS MONTH THAT THE COMPANY SAYS IS ESSENTIALLY THE SAME AS MOUNT ZION'S THE WORKERS AT PPG'S GREENSBURG PA PLANT REJECTED A SIMILAR CONTRACT PPG SAYS IT PLANS TO CLOSE THE PLANT BUT CALLS THE DECISION UNRELATED TWO OTHER PPG PLANTS ARE STILL ON STRIKE GOVERNMENT JOBS HAVEN'T FARED MUCH BETTER THAN THE PRIVATE SECTOR WHEN PRIVATE SECTOR SETTLEMENTS ARE IN A DEPRESSED CONDITION IT CATCHES UP WITH EVERYBODY SAYS DON WASSERMAN DIRECTOR OF COLLECTIVE BARGAINING AT THE ASSOCIATION OF FEDERAL STATE COUNTY AND MUNICIPAL EMPLOYEES THE ASSOCIATION SETTLED FOR A MUCHPUBLICIZED WAGE FREEZE IN PHILADELPHIA LOS ANGELES MEMBERS OF THE AMERICAN FEDERATION OF TEACHERS TOOK A 10 PAY CUT OVER THE LIFE OF THEIR TWOYEAR AGREEMENT EFFECTIVE JULY 1 THE DISTRICT CITING FINANCIAL DISTRESS HAD IMPOSED A 12 CUT REDUCED TO 10 BY A MEDIATOR THE TEACHERS DECIDED AGAINST A STRIKE FIGURING IT WOULDN'T HELP THE TEACHERS ALSO AGREED TO INCREASE THE AMOUNT THEY PAY FOR MEDICAL BILLS TO 30 FROM 20 IF THEY CHOOSE THEIR OWN DOCTORS WE'VE HAD A PRETTY ROUGH TIME BECASE OF THE FINANCIAL CONDITION OF LOCAL AND STATE GOVERNMENT SAYS AFT PRESIDENT ALBERT SHANKER A LOT OF OTHER PLACES HAVEN'T SEEN SALARY INCREASES IN TWO THREE FOUR YEARS TO BETTER THEIR CHANCES SOME UNIONS PARTICULARLY THE UNITED STEELWORKERS HAVE BEGUN POOLING THEIR INTERESTS WITH THOSE OF MANAGEMENT AT INLAND STEEL INDUSTRIES INC THE TWO SIDES SIGNED A SIXYEAR CONTRACT THAT GIVES WORKERS A BOARD SEAT AND A NOLAYOFF CLAUSE IN EXCHANGE FOR EASING WORK RULES AND STAFFING LEVELS WORKERS ALSO AGREED TO ONLY ONE WAGE INCREASE AVERAGING 37 IN THE CONTRACT'S FIRST THREE YEARS AS WELL AS BONUSES TIED IN PART TO CORPORATE PERFORMANCE ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO THE COUNTRY'S TWO LARGEST ALUMINUM MAKERS STUCK TO A MORE TRADITIONAL CONTRACT WITH THE STEELWORKERS AND THE ALUMINUM BRICK & GLASS WORKERS THE THREEYEAR CONTRACTS REACHED EARLIER THIS MONTH PROVIDE MODEST WAGE INCREASES OF ABOUT 19 IN 1993 AND 1995 AND A NEW MANAGED HEALTHCARE PLAN UNDER MANAGEDCARE SYSTEMS COMPANIES ARE ABLE TO SAVE MONEY BY NEGOTIATING SET PRICES WITH A SPECIFIC NETWORK OF DOCTORS AND HOSPITALS HOWEVER THE UNIONS GOT A GAINSHARING PACKAGE THEY HAD SOUGHT AS WELL AS PENSION AND LIFE INSURANCE IMPROVEMENTS A FEW CONTRACTS HAVE GONE COUNTER TO THE TREND WITH WAGE BOOSTS THAT EXCEEDED PREVIOUS ONES THE COMMUNICATIONS WORKERS OF AMERICA WON WAGE INCREASES OF 3 4 AND 4 FOR 2700 CINCINNATI BELL WORKERS IN A THREEYEAR CONTRACT REACHED EARLIER THIS MONTH THE UNION ALSO WON PENSION INCREASES OF 5 5 AND 4 AND A NEW JOB BANK THAT MINIMIZES THE USE OF CONTRACT WORKERS THE WORKERS HOWEVER AGREED TO PENALTIES FOR NOT USING MANAGED HEALTHCARE PLANS INSTEAD OF PAYING 10 THEY WOULD PAY 25 BY THE END OF THE CONTRACT THE AMALGAMATED CLOTHING & TEXTILE WORKERS ALSO WON A 4 WAGE INCREASE IN RECENT WEEKS AT ITS ANNUAL NEGOTIATIONS WITH SOUTHERN TEXTILE CHAINS IT ALSO SWITCHED TO A PREFERREDPROVIDER NETWORK FOR THE FIRST TIME EVER AT SOME COMPANIES WE'VE BEATEN INFLATION FOR THREE YEARS RUNNING SAYS BRUCE RAYNOR THE UNION'S SOUTHERN DIRECTOR BUT LETS PUT IT IN PERSPECTIVE TEXTILES IS THE LOWESTPAYING INDUSTRY IN AMERICA AND THE MOST PRODUCTIVE IN THE WORLD THE UNION HAS LOST THOUSANDS OF WORKERS TO AUTOMATION IN THE PAST DECADE 9306250133 930625 THURSDAY'S MARKETS STOCKS FOLLOW BONDS HIGHER DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK MARKET INVESTORS BID PRICES HIGHER AS THEY FOCUSED ON A BOND MARKET RALLY RATHER THAN MORE DISAPPOINTING ECONOMIC NEWS THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2380 POINTS TO 349061 STANDARD & POOR'S 500STOCK INDEX GAINED 343 TO 44662 AND THE NASDAQ COMPOSITE INDEX ROSE 393 TO 68872 ANALYSTS SAID STOCK INVESTORS SHRUGGED OFF A LABOR DEPARTMENT REPORT THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE LAST WEEK INSTEAD OF DECLINING A LITTLE AS EXPECTED INVESTORS PUSHED PRICES HIGHER IN TANDEM WITH THE RISING BOND MARKET THE STOCK MARKET ALSO DREW SUPPORT FROM AN UPBEAT EARNINGS OUTLOOK ANNOUNCED BY GOODYEAR TIRE & RUBBER WHICH JUMPED 1 7/8 TO 40 3/4 BUT MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO WARNED THAT WHAT'S GOOD NEWS FOR BONDS MAY MEAN TROUBLE FOR STOCKS THE REAL PROBLEM HERE IS THAT THE STOCK AND BOND MARKETS ARE OUT OF SYNC NOW MR METZ SAID THE STRENGTH IN THE BOND MARKET DOESN'T REFLECT THE DISINFLATIONARY CLIMATE AS MUCH AS CONCERN OVER THE REAL STRENGTH OF THE ECONOMY A REBOUND IN TRUCKING STOCKS AND AIRLINES DROVE THE DOW JONES TRANSPORTATION AVERAGE UP 2185 POINTS TO 151526 THIS IS NOTHING BUT A TECHNICAL BOUNCE WHICH IS OVERDUE MR METZ SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 065 TO 10478 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2608 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1139 ISSUES ROSE AND 771 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 673 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17073 MARKS AND 10873 YEN COMPARED WITH 16920 MARKS AND 109 YEN WEDNESDAY 9306250131 930625 COLUMBUS SOUTHERN'S BONDS COLUMBUS OHIO COLUMBUS SOUTHERN POWER CO A UNIT OF AMERICAN ELECTRIC POWER CO WILL REDEEM THE 80 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 9 1/2 FIRST MORTGAGE BONDS DUE 2015 ON AUG THE COMPANY SAID IT WILL REDEEM 800000 PRINCIPAL AMOUNT OF THE BONDS AT PAR THE REMAINING 792 MILLION PRINCIPAL AMOUNT NOT PREVIOUSLY CALLED WILL BE REDEEMED AT 10618 OF THE PRINCIPAL AMOUNT OF EACH BOND TO BE PAID UPON PRESENTATION OF THE BONDS INTEREST PAYABLE AUG 1 TO HOLDERS OF THE BONDS WILL BE PAID AS USUAL THE COMPANY SAID 9306250130 930625 REVIEW & OUTLOOK EDITORIAL CLINTON'S NEW TAXES AND SO A DEMOCRATICALLY CONTROLLED SENATE LED BY GEORGE MITCHELL IS GIVING DEMOCRATIC PRESIDENT BILL CLINTON HIS TAXLADEN BUDGET THIS IN CONTRAST TO WHAT THE PRESIDENT LIKES TO CALL 12 YEARS OF GRIDLOCK THEY BRAG THAT THIS ONE IS DIFFERENT INDEED IT IS SO DIFFERENT THAT EVEN CBS RADIO NEWS NOTED YESTERDAY WHAT IT CALLED THE CLASS WARFARE THEME IN THE DEMOCRATS' RHETORIC THE IDEA ORIGINATED BY BILL CLINTON IS THAT THE WEALTHY WHO BENEFITED MOST IN THE 1980S WILL NOW HAVE TO PAY THEIR FAIR SHARE THIS IS A HOAX PARTICULARLY ON THE AMERICAN MIDDLE CLASS THAT IS SUPPOSED TO BUY INTO IT LOOK AT THE ACCOMPANYING CHART SEE ACCOMPANYING ILLUSTRATION WSJ JUNE 25 1993 THE TAX TAKE PREDICTED BY BILL CLINTON FROM HIS HIGHER MARGINAL RATES ON INCOME IS NEVER GOING TO HAPPEN FOR STARTERS NO SERIOUS PERSON BELIEVES THE PRESIDENT IS ACTUALLY TAXING THE WEALTHY FROM THE '80S HE'S MAINLY TAXING PEOPLE WHO WEREN'T RICH IN THE '80S BUT SPENT THOSE YEARS WORKING TOWARD HIGHER INCOMES IN THE '90S OF THESE THOSE WHO ARE NOW TRULY RICH WILL TRANSFER SOME OF THEIR INCOME TO LAWYERS TO REDUCE THEIR TAX BILLS USING SCHEMES SUCH AS HILLARY CLINTON'S DECISION TO PUSH SOME OF HER 1993 INCOME BACK INTO 1992'S LOWER RATES THE REMAINING PEOPLE WITH MIDDLECLASS INCOMES AT THE HIGH END OF THE SCALE BUT NOT HIGH ENOUGH TO HIRE LAWYERS WILL GET CREAMED AT THE END OF THE YEAR TAXES AS A PERCENTAGE OF GDP WILL BE AROUND 20 JUST AS THEY WERE IN THE 1960S WHEN THE TOP RATE RAN BETWEEN 77 AND 91 AND AS THEY WERE IN THE 1980S WHEN THAT RATE FELL TO 28 FROM 50 AFTER A YEAR'S EXPERIENCE WITH THE NEW CLINTON TAXES THE MIDDLE CLASS WON'T FEEL ANY BETTER ABOUT ITS OWN TOTAL TAX BURDEN OR FINANCIAL SECURITY AND THE WEALTHY MOST CERTAINLY WON'T HAVE PAID A GREATER PERCENTAGE OF TOTAL REVENUES THE DEMOCRATS EVEN WITH A YOUNG PRESIDENT STILL SEEM TO BELIEVE THERE IS POLITICAL GAIN IN THE DEMAGOGUERY OF HIGH INCOME TAX RATES IT IS HARD TO IMAGINE THAT ANY OF THEM ACTUALLY BELIEVE THERE IS ANY ACTUAL GAIN FROM THOSE RATES WHEN SET AGAINST THE REVENUE RECORD OF THE PAST THREE DECADES 9306250129 930625 THE FCC DINOSAUR BY PETER HUBER THE PRESIDENT OF COX ENTERPRISES PLACES THE FIRST PHONE CALL CARRIED BY RADIO AND A CABLE TELEVISION NETWORK BELL ATLANTIC PREPARES TO DELIVER TELEVISION OVER ITS EXISTING TELEPHONE LINES MOTOROLA AND APPLE JOIN FORCES TO DEVELOP WIRELESS HANDHELD PERSONAL COMMUNICATORS MAJOR MANUFACTURERS OF FAXES AND TELEPHONES LINE UP TO SUPPORT MICROSOFT'S NEW COMMUNICATIONS STANDARDS FOR PERSONAL COMPUTERS NOT LONG AGO MANY OF THESE INITIATIVES WOULD HAVE RUN AFOUL OF SOME REGULATORY LINE OR ANTITRUST DECREE SOME STILL DO THOUSANDS OF BUREAUCRATS IN 53 SEPARATE STATE AND FEDERAL COMMISSIONS ARE STILL SCRAMBLING TO PROP UP THE OLD REGULATORY ORDER BUT THE MARKET ISN'T LISTENING ANYMORE IN THE 1990S MANY REGULATORS MUST GO THE WAY OF ERICH HONECKER AND FOR SIMILAR REASONS CONSIDER TELECOM POLICY UNDER THE IRON FIST OF HYATT OR MARRIOTT MANY HOTELS STILL GOUGE YOU SHAMELESSLY ON LONGDISTANCE CALLS THEY WON'T FOR MUCH LONGER THE CELLULAR PHONE IN YOUR BRIEFCASE ALREADY OFFERS A COMPETITIVE ALTERNATIVE AND AIR CHARGES ARE GOING TO PLUMMET IN THIS DECADE THE HOTELS ARE LOSING CONTROL OF THEIR OWN REAL ESTATE SO ARE CANADA FRANCE AND GERMANY FOR YEARS MANY COUNTRIES HAVE INFLATED THE PRICE OF LONGDISTANCE CALLS TO SUBSIDIZE OTHER SERVICES BUT IT GETS EASIER EVERY DAY TO SHIP TRAFFIC ACROSS THE BORDER WHERE YOU CAN DO YOUR LONGDISTANCE CALLING UNDER FRIENDLIER MANAGEMENT A CALL FROM MONTREAL TRAVELS FIRST BY WIRE TO NEW HAMPSHIRE BEFORE BEING PLACED TO SAN FRANCISCO MUCH THE SAME IS NOW POSSIBLE OR SOON WILL BE WITHIN OUR OWN BORDERS MY OWN HOME IS ALREADY SERVED BY FIVE INDEPENDENT CHANNELS OF COMMUNICATION A WIRELINE PHONE A CELLULAR PHONE CABLE TELEVISION A HOME SATELLITE DISH AND RADIOMAIL A TWOWAY WIRELESS DATA SERVICE FOR MY LAPTOP COMPUTER WITHIN A YEAR OR TWO ANOTHER SERVICE WILL ADD WIRELESS TWOWAY CAPABILITIES TO MY TELEVISION SO THAT I'LL BE ABLE TO ORDER A PIZZA WITHOUT PICKING UP THE PHONE BY THE END OF THE 1990S HALF A DOZEN ADDITIONAL RADIO CHANNELS WILL SUPPORT A NEW GENERATION OF WIRELESS PHONE SERVICES KNOWN AS PERSONAL COMMUNICATIONS SERVICES OR PCS DIRECT BROADCAST SATELLITE WILL HAVE ARRIVED TOO OFFERING WIRELESS CABLE OF A KIND ALREADY AVAILABLE TO SUBSCRIBERS IN EUROPE LITTLE OF THIS WAS ANTICIPATED IN 1984 WHEN THE BELL SYSTEM WAS DISMANTLED AND CONGRESS ENACTED THE FIRST CABLE ACT BELL WAS CARVED UP ON THE ASSUMPTION THAT LONGDISTANCE CARRIERS WOULD COMPETE AGAINST EACH OTHER USING MICROWAVE RADIO LIKE THE M IN MCI LOCAL CARRIERS WERE EXPECTED TO REMAIN LANDLINE MONOPOLIES THE 1984 CABLE ACT ENACTED ONLY A FEW MONTHS AFTER THE BREAKUP ASSUMED THAT TELEPHONE AND CABLE REQUIRED PHYSICALLY DIFFERENT NETWORKS AND DIRECTED THAT THESE INDUSTRIES BE KEPT APART BUT EVEN AS THE INK WAS DRYING ON THE DIVESTITURE DECREE LONGDISTANCE COMPANIES WERE DYNAMITING THEIR MICROWAVE TOWERS TO THE GROUND REPLACING THEM WITH FIBEROPTIC GLASS SOON AFTER RADIO TELEPHONY BEGAN TO INVADE LOCAL MARKETS CABLE COMPANIES ARE NOW POISED TO OFFER WIRELESS TELEPHONE SERVICE AND WITH NEW COMPRESSION TECHNOLOGY TELEPHONE COMPANIES CAN PROVIDE TELEVISION DIRECTLY OVER THEIR OWN NETWORKS MEANWHILE THE CELLULAR TELEPHONE INDUSTRY HAS SIGNED UP 11 MILLION CUSTOMERS IN LESS THAN A DECADE AND CONTINUES TO GROW AT DOUBLEDIGIT RATES IN THE NEXT FEW YEARS THE INDUSTRY WILL CONVERT TO DIGITAL RADIO WHICH WILL INCREASE CAPACITIES FROM THREE TO 10FOLD NEW WIRELESS PCS SERVICES WILL BECOME AVAILABLE AT PRICES COMPETITIVE WITH LANDLINE PHONE SERVICE ACCORDING TO ESTIMATES CITED RECENTLY BY THE FEDERAL COMMUNICATIONS COMMISSION THERE COULD BE 60 MILLION WIRELESS PHONES IN USE BY THE END OF THE DECADE GTE HAS ANNOUNCED PLANS TO REPLACE LANDLINES ENTIRELY WITH ALLDIGITAL RADIO SERVICE IN QUITAQUE TEXAS BUT THE NEW RADIO SERVICES CAN BE OFFERED BY ANYONE NOT JUST PHONE COMPANIES THEY ARE EASILY GRAFTED ONTO PRIVATE INSTITUTIONAL NETWORKS CABLE NETWORKS OR THE COMPETING FIBEROPTIC NETWORKS ALREADY DEPLOYED IN MANY CITIES BY COMPETITIVE ACCESS PROVIDERS UNTIL RECENTLY REGULATORS ATTEMPTED TO MAINTAIN HIGH WALLS BETWEEN POTENTIALLY COMPETITIVE MARKETS THEY SET IN PLACE A LABYRINTH OF CROSSOWNERSHIP RESTRICTIONS AIMED AT SEPARATING TELEVISION FROM RADIO TELEVISION FROM NEWSPAPERS TELEPHONE FROM CABLE AND SO ON IT'S STILL POSSIBLE TO SEPARATE PHYSICAL FACILITIES EG CABLE AND TELEPHONE NETWORKS BUT WITH TODAY'S TECHNOLOGY IT MAKES NO SENSE TO SEPARATE ANYTHING MORE THAN THAT TELEVISION STATIONS ALREADY BROADCAST ELECTRONIC NEWSPAPERS WITHIN THE VERTICAL BLANKING INTERVAL OF THEIR SPECTRUM LICENSES RADIO STATIONS PROVIDE PAGING SERVICES OVER THE SUBCARRIER PORTIONS OF THEIR ASSIGNED FREQUENCIES CABLE COMPANIES OFFER CABLE RADIO AND ELECTRONIC PUBLISHING SERVICES OVER THE SAME WIRE ALONGSIDE BOTH TELEVISION AND A NEW GENERATION OF WIRELESS TELEPHONE SERVICE WHEN THEY WIN REGULATORY RELIEF PHONE COMPANIES WILL IMMEDIATELY OFFER VIDEO OVER THEIR NETWORKS THE NEW ABUNDANCE ALSO MAKES NONSENSE OF REGULATORY ATTEMPTS TO RATION SCARCITY THE OLD FAIRNESS DOCTRINE FOR EXAMPLE REQUIRED OVERTHEAIR BROADCASTERS TO AIR OPPOSING VIEWS ON THE THEORY THAT OTHERWISE THEY MIGHT NOT BE HEARD OTHER REGULATIONS DIVIDED UP CABLE CHANNELS AMONG CABLECASTERS OVERTHEAIR BROADCASTERS EDUCATORS AND LOCAL GOVERNMENT INSTITUTIONS BUT CABLE OPERATORS ARE NOW UPGRADING TO SUPPORT 500 CHANNELS AND WITH VIDEOONDEMAND BY TELEPHONE THE NUMBER OF CHANNELS WILL BE LIMITLESS THE REGULATORY RATION BOOKS ARE HEADED FOR THE SHREDDER SO ARE MOST OF THE OLD ACCOUNTING AND DEPRECIATION SCHEDULES STATE UTILITY COMMISSIONS STILL RUN LARGE TAXANDSPEND PROGRAMS THEY OVERCHARGE BUSINESSES UNDERCHARGE RESIDENCES AND FORCE THE URBAN POOR TO SUBSIDIZE THE VACATION HOMES OF THE SUBURBAN RICH THE FCC LEVIES A VIPER'S NEST OF ACCESS CHARGES ON PROVIDERS AND CONSUMERS OF INTERSTATE SERVICES ONE FOR EXAMPLE APPLIES TO LEAKY PRIVATE SWITCHES THAT RECEIVE LONGDISTANCE TELEPHONE TRAFFIC OVER PRIVATE LINES AND THEN FEED IT INTO THE LOCAL PUBLIC NETWORK WITHOUT PAYING THE USUAL TOLLS BUT TAXANDSPEND REGULATORS CAN'T HOPE TO KEEP TRACK OF LEAKING SWITCHES AND THEY HAVE NO EFFECTIVE POWER TO ERECT TOLLBOOTHS AT ALL THE MULTIPLYING GATEWAYS INTO THE TELECOM CYBERSPACE AS COMPETITIVE RADIO ALTERNATIVES PROLIFERATE AND CABLE COMPANIES CHARGE INTO THE MARKET THE COMPLETE DEREGULATION OF TELEPHONE PRICES IS INEVITABLE THE SAME HOLDS FOR TELEVISION TRUE ENOUGH THE FCC HAS JUST BEEN ORDERED BY THE 1992 CABLE ACT TO REREGULATE THE RATES CHARGE FOR BASIC CABLE SERVICE BUT PHONE COMPANIES ARE EAGER TO OFFER VIDEOONDEMAND AND WILL DO SO THE MOMENT A FEDERAL JUDGE OR CONGRESS SAYS THAT THEY MAY THERE ARE OTHER SUBSTITUTES FOR CABLE INCLUDING WIRELESS CABLE BY SATELLITE OR CELLULAR TERRESTRIAL NETWORKS BY THE TIME THE FCC FINALLY GETS ITS NEW PRICE REGULATIONS HAMMERED OUT AND FINISHES DEFENDING THE INEVITABLE CHALLENGES IN COURT COMPETITION WILL HAVE MADE THE WHOLE UNDERTAKING OBSOLETE THERE'S HARDLY A REGULATORY PROBLEM TODAY THAT DOESN'T HAVE A MARKET SOLUTION CLOSE AT HAND SOME STATE REGULATORS FOR EXAMPLE WANT TO BAN CALLER ID SERVICE ON THE GROUND THAT IT INVADES MORE PRIVACY THAN IT PROTECTS BUT ANYONE WHO REALLY WANTS CALLER ID CAN STILL ARRANGE TO GET IT BY ROUTING CALLS ACROSS STATE LINES IT'S EQUALLY EASY TO OBLITERATE CALLER ID BY ROUTING CALLS THROUGH AN UNTRACEABLE POSTAL ADDRESS BY SIGNING ON WITH A PRIVATE MAILBOX SERVICE BEFORE LONG INTERNATIONAL TELEPHONE RATES ARE GOING TO BE LOW ENOUGH FOR PROVIDERS OF ONLINE SERVICES TO LOCATE OFFSHORE DOMESTIC COMPANIES WILL EITHER BE ALLOWED TO COMPETE UNHINDERED OR THEY'LL RELOCATE TO BERMUDA WHAT BEGAN IN THE 1970S AS A TINY STREAM MOVING TOWARD FREEDOM OF THE WIRES AND THE AIRWAVES HAS BECOME A FLOOD TELECOM REGULATORS HAVE LOST CONTROL OF THEIR BORDERS THOUSANDS OF THEIR SUBJECTS ARE SIMPLY WALKING AWAY WE NEED AN ORDERLY TRANSITION OF COURSE WE CAN'T JUST LOAD OUR FCC COMMISSIONERS ON THE NEXT PLANE TO PARAGUAY BUT AT BOTH STATE AND FEDERAL LEVELS WE CAN APPOINT REGULATORS WHO ARE LOOKING FORWARD TO COMPETITION IN THE 1990S NOT BACKWARD TO MONOPOLY IN THE 1950S MR HUBER IS A FELLOW OF THE MANHATTAN INSTITUTE 9306250128 930625 INITIAL JOBLESS CLAIMS ROSE IN LATEST WEEK WASHINGTON CLAIMS FOR INITIAL UNEMPLOYMENT BENEFITS ROSE BY 8000 IN THE WEEK ENDED JUNE 19 TO 353000 ACCORDING TO THE LABOR DEPARTMENT IN THE WEEK ENDED JUNE 12 THE LARGEST INCREASES IN CLAIMS OCCURRED IN CALIFORNIA MICHIGAN AND FLORIDA THE LARGEST DECLINE WAS IN ILLINOIS ALL FIGURES EXCEPT THOSE FOR INDIVIDUAL STATES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9306250127 930625 THIS SOUNDS LIKE JUST THE PLACE FOR GRUNGE LOVERS TO STOCK UP BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL FOR PEOPLE WHO LIKE TO TRASH A GOOD PARTY RECYCLETOWN WILL HOLD ITS SEVENTHANNUAL INVITATIONAL JUNKARTSCULPTURE PARTY WELCOMING VISITORS SOME OF WHOM WILL COME TO THE EVENT DRESSED IN JUNKCOSTUMES AND BE TREATED TO JUNK FOOD JUNK MUSIC AND JUNKART SCULPTURES MORE THAN 600 TO 700 VISITORS ARE EXPECTED TO VIEW THE SCRAP SCULPTURES THAT WILL BE ON DISPLAY TOMORROW AT THE RECYCLING CENTER JUST OUTSIDE OF PETALUMA CALIF THE SCULPTURES MADE OF RECYCLABLE GOODS WILL BE BROUGHT TO THE CENTER BY NEARLY 200 AMATEUR AND PROFESSIONAL ARTISTS WHOSE RANKS COME MOSTLY FROM AN EXTENSIVE MAILING LIST AT THE RECYCLING CENTER'S NONPROFIT PARENT COMPANY GARBAGE REINCARNATION SANTA ROSA CALIF WE CALL IT OUR ANNUAL SCRAPTURE PARTY' SAYS PAVITRA CRIMMEL RECYCLETOWN'S PROJECT MANAGER IT'S A TERM WE COINED BECAUSE THE ARTISTS DIDN'T LIKE THE JUNKART WORDING THEY THOUGHT IT DIMINISHED THEIR ART SHE ADDS PEOPLE COME TO THE CENTER TO BUY THINGS TO USE CREATIVELY IT'S A MAGNET THAT DRAWS CREATIVE PEOPLE TO IT PEOPLE WITH NO CREATIVITY DROP THINGS OFF AND CREATIVE PEOPLE PICK IT UP AT THE ONEDAY BASH VISITORS WILL BE ABLE TO DRUM UP THEIR OWN JUNK MUSIC BANGING HUBCAPS AND OTHER DISCARDS TOGETHER TO CREATE AN INTERACTIVE MUSICAL THING SAY MS CRIMMEL AND FOR KIDS THERE'S A SCRAPART CATEGORY FOR 16YEAROLDS AND YOUNGER THE EVENT PROVIDES AN INFORMATIONAL OPPORTUNITY FOR WASTEMANAGEMENT ISSUES SAYS MS CRIMMEL IT'S A WAY TO EDUCATE IT HELPS CREATE A NEW VISION WHICH IN ITSELF IS EDUCATION LAST YEAR'S EVENT INSPIRED A NEW CATEGORY CREATIVE COSTUMES FROM CASTAWAYS FOR WHICH LOCAL ARTIST PARTICIPANTS BILL SURASKY AND BRYN CRAIG WORE OLDFASHIONED AVIATOR COSTUMES COMPLETE WITH CATFOODTIN GOGGLES THE ADVERTISING BROCHURE FOR THE NEW FEATURE SAYS SURPRISE US THE TWO ARTISTS WHO PLAN TO PARTICIPATE AGAIN THIS YEAR LAST YEAR DISPLAYED A PIECE CALLED A RAKED/TAILED BOOBY BOOBIES BEING SEABIRDS THAT HAVE IN THE PAST SUFFERED LOSS OF HABITAT THE SCRAP CREATION HAD A RAKE ATTACHED AS A TAIL TO THE BACK OF AN OLD RUSTY TRICYCLE WHICH WHEN PEDALED FLAPPED A PAIR OF WINGS IT WAS A MANIFESTATION OF WHO THE ARTISTS WERE AND IT WAS TOTALLY ABSURD MS CRIMMEL SAYS 9306250126 930625 WHO'S NEWS IBM CHAIRMAN SELECTS PUCKETT FOR STRATEGY POST BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S NEW CHAIRMAN LOUIS V GERSTNER JR NAMED ANOTHER ADDITION TO HIS GROWING INNER CIRCLE ELEVATING IBM VETERAN M BERNARD PUCKETT TO BE SENIOR VICE PRESIDENT FOR CORPORATE STRATEGY AND DEVELOPMENT MR PUCKETT 48 YEARS OLD WILL HOP TWO STEPS UP IN THE IBM CHAIN OF COMMAND AND REPORT DIRECTLY TO MR GERSTNER A FORMER MCKINSEY & CO CONSULTANT AND ARDENT DEVOTEE OF STRATEGIC PLANNING MR PUCKETT IS THE FIRST IBM INSIDER ANOINTED BY MR GERSTNER FOR A JOB REPORTING DIRECTLY TO HIM KNOWN AS A THOUGHTFUL POLITICALLY ADEPT JACKOFALLTRADES MR PUCKETT HAS HELD TOP JOBS AT IBM OVERSEEING CORPORATE PLANNING MAINFRAME COMPUTERS COMMUNICATIONS AND MOST RECENTLY A 2 BILLION DIVISION CALLED APPLICATION SOLUTIONS THAT PREPARES PRODUCTS FOR SPECIFIC INDUSTRY MARKETS IBM SAID MR PUCKETT WOULDN'T COMMENT ON HIS NEW JOB ONE OF MY INITIAL PRIORITIES FOR IBM HAS BEEN TO IDENTIFY OUR STRATEGIC ISSUES AND OPPORTUNITIES AND THEN DRIVE AGGRESSIVE ACTION PROGRAMS TO MOVE THE COMPANY FORWARD MR GERSTNER SAID IN A STATEMENT HE SAID MR PUCKETT WOULD WORK DIRECTLY WITH ME ON THIS EFFORT MR GERSTNER GATHERED HIS TOP MANAGERS FOR A TWODAY STRATEGIC PLANNING SESSION IN MAY IN CHANTILLY VA DRAWING UP A LIST OF KEY UNRESOLVED ISSUES AND ASSIGNING STUDIES OF EACH ONE MR PUCKETT FOR INSTANCE WAS ASSIGNED TO REPORT ON A REDHOT TOPIC THE CONVERGENCE OF CONSUMER ELECTRONICS COMMUNICATIONS AND COMPUTING IN HIS NEW JOB MR PUCKETT WILL ALSO OVERSEE ALL THE OTHER CHANTILLY ASSIGNMENTS LAST MONTH MR GERSTNER TAPPED FORMER CHRYSLER CORP EXECUTIVE GERALD YORK AS CHIEF FINANCIAL OFFICER AND FORMER BANKAMERICA CORP EXECUTIVE GERALD CZARNECKI TO OVERSEE PERSONNEL AND ADMINISTRATION BOTH HAVE EMERGED AS KEY CONFIDANTS OF MR GERSTNER LEAVING SOME LONGTIME IBM MANAGERS FEELING SOMEWHAT OUT OF THE LOOP RIGHT NOW TO BE FROM THE OUTSIDE IS TO BE ON THE INSIDE SAID A FORMER IBM EXECUTIVE STILL CLOSE TO THE COMPANY BEFORE MR PUCKETT'S APPOINTMENT HE SAID NO ONE HAD BEEN ENFRANCHISED YET FROM THE OLD GUARD IN HIS LAST JOB MR PUCKETT WENT A LONG WAY TOWARD DISMANTLING THE GRABBAG EMPIRE APPLICATION SOLUTIONS HAD BECOME ARRIVING IN EARLY 1991 HE INHERITED A BUSINESS WITH MORE THAN 30000 EMPLOYEES AND CUT IT DOWN TO 5000 9306250125 930601 LONG CLIMB DISCRIMINATION MOLDS A REALESTATE TYCOON INTO A TOUGH SURVIVOR SAN FRANCISCO'S SHORENSTEIN CULTIVATES RICH PEOPLE BANKROLLS DEMOCRATS SEX HARASSMENT SUIT SETTLED BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE DIFFICULTY HE ENCOUNTERED ALMOST 50 YEARS AGO BREAKING INTO THIS CITY'S REALESTATE MARKET STILL INFURIATES WALTER SHORENSTEIN BACK THEN HE SAYS THE CITY WAS RULED BY BLUEBLOOD WASPS WHO SHUNNED HIM SIMPLY BECAUSE HE WAS JEWISH THEY WERE ALWAYS OUT THERE THROWING ROCKS HE SAYS HIS VOICE RISING HOW DARE THEY WHO DO THEY THINK THEY ARE THE DISCRIMINATION INCREASED MR SHORENSTEIN'S DRIVE TO SUCCEED THE SON OF A HABERDASHER HE NOW BOASTS A NET WORTH OF 405 MILLION ACCORDING TO A LEATHERBOUND FINANCIAL STATEMENT SIGNED BY COOPERS & LYBRAND THAT HE PROUDLY PRODUCES AT A TIME WHEN MANY REALESTATE EMPIRES ARE CRUMBLING SHORENSTEIN CO IS ONE OF THE NATION'S LARGEST AND HEALTHIEST HIS EXPERIENCE WITH DISCRIMINATION ALSO SPURRED HIM TOWARD POLITICAL ACTIVISM IN THE 1992 CAMPAIGN HE HELPED BANKROLL VARIOUS DEMOCRATIC DRIVES TO THE TUNE OF 5 MILLION MOSTLY THROUGH HIS POLITICAL ACTION COMMITTEE AGENDA FOR THE '90S NO OTHER INDIVIDUAL WAS MORE SIGNIFICANT OR HELPFUL TO CLINTON'S VICTORY SAYS RON BROWN FORMER DEMOCRATIC PARTY CHAIRMAN AND NOW COMMERCE SECRETARY NOT ONLY HAS HE DONE WELL AND REMAINED DEMOCRAT BUT HE IS UNUSUAL IN THE SENSE THAT HE ACTS ON HIS CONVICTIONS SAYS SENATE MAJORITY LEADER GEORGE MITCHELL A FRIEND OF MR SHORENSTEIN FOR NEARLY 25 YEARS HE BELIEVES IN THE PRINCIPLES OF THE DEMOCRATIC PARTY THAT EVERY CITIZEN OUGHT TO HAVE A FAIR CHANCE TO SUCCEED AND IS ENTITLED TO THE FULLEST RANGE OF INDIVIDUAL LIBERTY MR SHORENSTEIN SAYS I'M SURPRISED THAT MORE BUSINESS PEOPLE AREN'T DEMOCRATS THE PHILOSOPHY WHEN YOU LOOK AT THE CORE DEMOCRATS IS MORE CONSERVATIVE OR AS CONSERVATIVE AS THE REPUBLICAN ONE BUT THE DIFFERENCE IS SOCIAL CONSCIOUSNESS TO BE SURE NOT EVERYONE IS ENTHUSIASTIC ABOUT MR SHORENSTEIN SUCH AS FORMER SECRETARIES WHO CLAIM HE SEXUALLY HARASSED OR DISCRIMINATED AGAINST THEM AND AT LEAST 15 FORMER AND CURRENT BLACK EMPLOYEES WHO CLAIM A PATTERN OF DISCRIMINATION AT HIS FIRM HE HOTLY DENIES BOTH SETS OF CHARGES MR SHORENSTEIN HAS LONG BEEN REGARDED AS A COMMON MAN'S RICH MAN ESPECIALLY HERE IN SAN FRANCISCO IN JANUARY HE PLAYED A LEAD ROLE IN PREVENTING THE GIANTS BASEBALL TEAM FROM MOVING TO FLORIDA CONTRIBUTING 6 MILLION TO THE 11THHOUR 100 MILLION RESCUE THE NEW MANAGEMENT HIRED THE GIANTS' FIRST BLACK MANAGER DUSTY BAKER MR SHORENSTEIN'S ACTIVITIES INCLUDE A 500000 PLEDGE TO SHELTER ABUSED INNERCITY YOUTH AND A 5 MILLION ENDOWMENT FOR A HARVARD UNIVERSITY CENTER TO STUDY THE INTERPLAY BETWEEN MEDIA AND POLITICS IN MEMORY OF JOAN SHORENSTEIN BARONE LATE DAUGHTER OF MR SHORENSTEIN AND HIS WIFE OF 47 YEARS PHYLLIS SHORENSTEIN FROM HIS OFFICE ATOP THIS CITY'S CHOICEST PIECE OF REAL ESTATE THE BANKAMERICA TOWER WHICH HE COOWNS THE SUSPENDERED 78YEAROLD LOOKS OUT AT A SKYLINE THAT HE HELPED SHAPE BUT A MORE IMPORTANT MEASURE OF HIS SUCCESS IS THE STREAM OF CALLS HE RECEIVES FROM US SENATORS MAJOR LEAGUE BASEBALL OWNERS AND FORTUNE 500 COMPANY TENANTS LONG RELEGATED TO BEING AN OUTSIDER LOCALLY MR SHORENSTEIN BECAME AN INSIDER NATIONALLY AND THAT CLEARLY THRILLS HIM WE ALL WANT TO BELONG OR BE A PART OF SOMETHING HE SAYS WE DON'T WANT TO BE EXCLUDED IT WAS IN THE NEW YORK CITY SUBURB OF GLEN COVE LONG ISLAND WHERE MR SHORENSTEIN GREW UP THAT HE FIRST ENCOUNTERED EXCLUSION THE MODEST HOME OF HIS PARENTS SAT HARD BY THE WALLED ESTATES OF PEOPLE LIKE JP MORGAN JR WHO WAS CHAUFFEURED AROUND TOWN IN A LIMOUSINE STILL MR SHORENSTEIN BECAME FRIENDS WITH KIDS FROM PROMINENT LOCAL FAMILIES RECALLS HIS SISTER ROSE MENDELSOHN WHO SAYS HE ALWAYS ADMIRED MONEYED PEOPLE WITH HIS WIFE MR SHORENSTEIN MOVED TO SAN FRANCISCO IN 1946 DETERMINED TO BECOME A MONEYED PERSON HIMSELF HE WORKED FEVERISHLY AS A BROKER OF INDUSTRIAL PROPERTY ON SUNDAY HIS DAY OFF HE DROVE HIS FAMILY AROUND LOOKING AT WAREHOUSES BUT FOR ALMOST A DECADE HE BARELY MADE ENDS MEET BECAUSE HE SAYS HE WAS JEWISH IN AN ERA WHEN A FEW WHITE PROTESTANT FIRMS CONTROLLED THE CITY'S LUCRATIVE OFFICE MARKET IMPORTANT DEALS WERE SEALED AT MEN'S CLUBS THAT EXCLUDED JEWS HIS COMPETITORS THWARTED HIM HE SAYS BY MAKING ANTISEMITIC REMARKS ABOUT HIM BUT HE REFUSED TO LET BIGOTRY PREVAIL I LOOKED AT IT THAT IF I HAD SOMETHING TO OFFER THE WORLD THE WORLD WOULD ACCEPT IT REGARDLESS OF WHAT I WAS HE SAYS HIS DETERMINATION PLUS HIS CHILDHOOD PRACTICE OF CULTIVATING WEALTHY PEOPLE EVENTUALLY PAID OFF HE WOULD DROP IN ON MAJOR PROPERTY OWNERS OFFERING THE KIND OF GOSSIP YOU'D INVENT TO GET THE GUY TALKING HE SAYS MR SHORENSTEIN ASKED ABOUT THIS LATER SAYS HIS CLIENT WAS AWARE OF THE SECOND OFFER AND THE POTENTIAL PROFIT IN A QUICK RESALE BUT LET THE OPTION LAPSE FOR COMPLICATED TAX REASONS EPISODES SUCH AS THAT WON MR SHORENSTEIN THE BUSINESS OF VARIOUS RICH CLIENTS AND OVER THE NEXT 25 YEARS DEEPPOCKETED PARTNERS ENTRUSTED HIM WITH MONEY TO BUY OR BUILD MORE THAN A DOZEN SKYSCRAPERS IN SAN FRANCISCO TODAY HIS COMPANY OWNED ENTIRELY BY HIM AND HIS FAMILY CONTROLS 25 OF THE DOWNTOWN OFFICE SPACE HERE AND ALSO MANAGES SOME NEW YORK BUILDINGS INCLUDING THE LANDMARK METLIFE FORMERLY PAN AM BUILDING AS A BUILDER AND MANAGER OF PROPERTIES HE IS KNOWN AS BRILLIANT I'D CALL HIM A MIRACLE PARTNER SAYS ELIZABETH CLARK A VICE PRESIDENT WITH METROPOLITAN LIFE INSURANCE CO WHICH HAS INVESTED NEARLY 150 MILLION IN SHORENSTEIN PROJECTS AS A COMPETITOR MR SHORENSTEIN IS OFTEN INGENIOUS IN 1983 ANOTHER DEVELOPER HAD BEGUN CONSTRUCTION OF A HIGHPROFILE OFFICE TOWER HERE THE PROJECT'S PROSPECTIVE ANCHOR TENANT STANDARD OIL OF OHIO HAD LEASED SPACE THROUGH MR SHORENSTEIN'S FIRM FOR YEARS BUT NEEDED 400000 SQUARE FEET FOR EXPANSION IN A HURRY MR SHORENSTEIN HATED TO LOSE SOHIO NOW PART OF BRITISH PETROLEUM SO HE SAID IN THE BUSINESSSCHOOL LECTURE LAST YEAR HE HATCHED A PLAN SINCE MR SHORENSTEIN DIDN'T ACTUALLY HAVE A BUILDING UNDER CONSTRUCTION HE SAYS HE VISITED HIS ARCHITECTS AND SIMPLY BORROWED THE PLANS FOR ANOTHER BUILDING THEN HE SUBSTITUTED THE ADDRESS OF A PARCEL OF LAND HE OWNED SOHIO AGREED TO MR SHORENSTEIN'S DEAL AND HE DID MEET ITS DEADLINE THERE ARE SO MANY OTHERS OF THESE KINDS OF TRANSACTIONS THAT ARE EXTRAORDINARY IN A WAY AS TO HOW THESE DEALS ARE PUT TOGETHER THAT I COULD GO ON FOREVER HE TOLD THE BUSINESS CLASS TRUTH IS STRANGER THAN FICTION IN A LOT OF THESE THINGS ANOTHER OF MR SHORENSTEIN'S STRENGTHS IS KNOWING WHEN TO QUIT HIS LAST DEAL WAS IN 1985 WHEN HE BOUGHT THE BANKAMERICA COMPLEX FOR 660 MILLION YOU STOP WHEN YOU THINK THE CYCLE IS GOING AGAINST YOU HE SAYS REFERRING TO OLYMPIA & YORK DEVELOPMENT LTD'S RUINOUS GAMBLE ON LONDON'S CANARY WHARF HE ADDS YOU DON'T KEEP BETTING THE FARM MR SHORENSTEIN SEEMED TO HAVE DONE JUST THAT WITH THE BANK COMPLEX BUT IN 1989 AT THE PEAK OF THE MARKET HE DECIDED TO SELL HALF OF IT TO ENTICE THE MOST LOGICAL BUYER THE BANK ITSELF MR SHORENSTEIN LET IT BE KNOWN THERE WAS KEEN JAPANESE INTEREST IN THE PROPERTY THE BANK SNAPPED UP AN OPTION PAYING SOME 35 ABOVE THE MARKET RATE MR SHORENSTEIN NETTED AN ESTIMATED 57 MILLION GAIN WHEN THE DEAL CLOSED A YEAR AGO HIS VACANCIES IN SAN FRANCISCO JUST 3 RUN WELL BELOW THE 15 DOWNTOWN AVERAGE PART OF THE REASON IS THAT HE RENEGOTIATES LEASES YEARS BEFORE THEY EXPIRE AND KEEPS HIS BIG TENANTS HAPPY TO ACHIEVE SUCH GOALS MR SHORENSTEIN DEMANDS A LOT OF HIMSELF AND OF HIS EMPLOYEES NEVER SLOW TO CRITICIZE HE HAS BEEN KNOWN TO BERATE UNDERLINGS ON HIS SPEAKERPHONE ENABLING OTHERS TO OVERHEAR HE HUMILIATES ME AND YELLS AT ME SAYS RICHARD CHICOTEL A SHORENSTEIN MANAGER AND ADMIRER BUT I CAN TAKE IT MY FATHER WAS A STEVEDORE MR SHORENSTEIN SAYS WE ARE VERY FAIR IN EVERYTHING WE DO IN POLITICS MR SHORENSTEIN IS ONE OF THE MOST PRODUCTIVE DEMOCRATIC FUNDRAISERS LAST SEPTEMBER HE ORGANIZED A DINNER FEATURING AL GORE THAT RAISED 14 MILLION FROM LARGE COMPANIES AND WEALTHY CONTRIBUTORS OBSERVERS SAY HE WANTS TO BE THE GUY WHOM BUSINESS AND LABOR LEADERS CAN CALL WHEN THEIR LOBBYISTS AREN'T GETTING THROUGH THE GUY POLITICIANS CAN COUNT ON FOR CAMPAIGN FUNDS I LOOK AT MYSELF AS A PATRIARCH SAYS MR SHORENSTEIN CALLING HIMSELF ONE OF THE FEW BUSINESSPEOPLE WHO KNOW HOW TO GET TO THE DEMOCRATIC HIERARCHY WHEN A PROVISION FAVORABLE TO INSURERS WAS DROPPED JUST PRIOR TO PASSAGE OF A 1988 TAX BILL A LONGTIME PARTNER OF MR SHORENSTEIN'S MUTUAL BENEFIT LIFE INSURANCE CO SOUGHT HIS HELP MR SHORENSTEIN PLACED A LATENIGHT CALL TO REP DAN ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE BY MORNING MR SHORENSTEIN SAYS THE PROVISION WAS BACK IN REP ROSTENKOWSKI CONFIRMS THAT ACCOUNT BUT ADDS THAT MR SHORENSTEIN WASN'T THE ONLY PERSON TO ASK FOR THE PROVISION'S RETURN MR SHORENSTEIN CALLS HIMSELF A PIONEER IN THE HIRING OF WOMEN MANAGERS IN THE MALEDOMINATED REALESTATE INDUSTRY WOMEN HAVE BEEN THE BACKBONE OF GROWTH AND SUCCESS OF SHORENSTEIN CO IN VARIOUS ROLES HE SAYS WOMEN HOLD NEARLY HALF OF THE KEY MANAGEMENT SLOTS AT THE COMPANY YET INTERVIEWS WITH SOME CURRENT AND FORMER WORKERS SUGGEST ANOTHER SIDE TO MR SHORENSTEIN'S ATTITUDE TOWARD SOME WOMEN NANCY NOVACK WHO WAS MR SHORENSTEIN'S EXECUTIVE SECRETARY FOR 10 YEARS ENDING IN 1991 FILED SUIT LAST JUNE IN SAN FRANCISCO SUPERIOR COURT ALLEGING THAT HE SEXUALLY MOLESTED HER MORE THAN 100 TIMES OVER SEVEN YEARS A 49YEAROLD DIVORCEE MS NOVACK ALLEGED IN HER COMPLAINT THAT THOUGH SHE NEEDED HER 50000AYEAR SALARY TO SUPPORT HERSELF THE SITUATION EVENTUALLY BECAME SO INTOLERABLE THAT SHE QUIT IN A DEPOSITION SHE ALLEGED SOMETIMES HE WOULD TRY TO PUT HIS HAND UP MY BLOUSE OR MY SWEATER OR UP MY SKIRT HE TRIED TO MAKE ME RUB HIS PENIS I WOULD GET UPSET SOMETIMES I CRIED THROUGH HIS ATTORNEY AND IN COURT FILINGS MR SHORENSTEIN DENIES MS NOVACK'S ALLEGATIONS HE ALLEGED IN COURT DOCUMENTS THAT SHE QUIT TO BECOME A PSYCHOLOGICAL COUNSELOR AND THAT HER TRUE MOTIVE FOR SUING HIM WAS TO GET MONEY TO FINANCE BOTH HER NEW CAREER AND AN ORGANIZATION SHE FOUNDED CALLED ACTION AGAINST SEXUAL VIOLENCE MS NOVACK DENIED THESE CHARGES IN COURT FILINGS THE LAWSUIT WAS SETTLED LAST SEPTEMBER AND THOUGH BOTH PARTIES DECLINED TO COMMENT ON THE TERMS PEOPLE CLOSE TO THE CASE SAY THE SETTLEMENT COST THE COMPANY HUNDREDS OF THOUSANDS OF DOLLARS WHEN CHRISTINE SEBASTIAN WORKED AT THE COMPANY IN THE MID1980S AS AN EXECUTIVE SECRETARY SHE SAYS SHE HAD SIMILAR EXPERIENCES WITH MR SHORENSTEIN ALTHOUGH SHE DECLINES TO ELABORATE UNLIKE MS NOVACK WHO MS SEBASTIAN SAYS NEEDED A JOB MS SEBASTIAN SAYS SHE RESIGNED AFTER HIS UNWELCOME ADVANCES THROUGH HIS ATTORNEY MR SHORENSTEIN DENIES MS SEBASTIAN'S ACCOUNT SAYING HE NEVER ENGAGED IN ANY IMPROPER CONDUCT WITH HER TO REPLACE MS NOVACK MR SHORENSTEIN RECRUITED REBECCA ALLINGTON FROM THE LOCAL OFFICE OF NEW YORKBASED FINANCIERS KOHLBERG KRAVIS ROBERTS & CO IN 1991 MS ALLINGTON SAYS SHE WAS NEVER SEXUALLY HARASSED BUT SHE ASSERTS THAT MR SHORENSTEIN DISCRIMINATED AGAINST HER WHEN SHE BECAME PREGNANT HE SAID QUOTE I KNOW THERE IS A LAW BUT THE LAW IS OVER THERE AND I AM OVER HERE AND I HAVE A BUSINESS TO RUN HE WAS TELLING ME THAT IF I WAS PREGNANT I WASN'T GOING TO STICK AROUND SAYS MS ALLINGTON AFTER SEVEN MONTHS ON THE JOB SHE SAYS HE PAID ME SEVEN MONTHS' SEVERANCE AND I HAD TO SIGN A RELEASE NOT TO SUE MR SHORENSTEIN SAYS HE DOES NOT RECALL MAKING THAT STATEMENT HE SAYS THE COMPANY DOESN'T DISCRIMINATE ON THE BASIS OF SEX THE COMPANY SAYS THAT MS ALLINGTON HAD SEVERAL OPTIONS INCLUDING THE ONE SHE CHOSE AND THAT THE RELEASE SHE SIGNED IS ONE ALL DEPARTING EMPLOYEES ARE ASKED TO SIGN MS ALLINGTON DENIES SHE HAD ANY OTHER OPTION I FEEL WALTER HAS FOOLED A LOT OF PEOPLE SHE SAYS NUMEROUS BLACK EMPLOYEES OF SHORENSTEIN CO SAY THEY HAVE BEEN BLOCKED FROM WHITECOLLAR OR PROFESSIONAL JOBS MOST BLACKS AT THE COMPANY WORK IN LOWLEVEL POSITIONS MANY AS SECURITY GUARDS IN INTERVIEWS 15 CURRENT AND FORMER BLACK EMPLOYEES DESCRIBE EXPERIENCES THAT THEY ALLEGE INDICATE AN INSTITUTIONAL BIAS WITHIN THE COMPANY AGAINST AMBITIOUS OR OUTSPOKEN BLACKS FOR EXAMPLE LOUIS BELL WAS FIRED FROM HIS JOB AS A GUARD SUPERVISOR IN 1987 HE SAYS WITHOUT CAUSE MR SHORENSTEIN SAYS MR BELL WAS FIRED FOR FORGING TIME SHEETS A CHARGE MR BELL DENIES THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION REVIEWED THE MATTER AND REQUIRED SHORENSTEIN CO TO PAY MR BELL 13000 THE COMPANY SAYS THE CASE WAS SETTLED ON PURELY TECHNICAL GROUNDS MR BELL SAYS I DIDN'T DO ANYTHING WRONG AND TO WIN AGAINST SOMEONE SO POWERFUL MONEYWISE THAT WAS A BIG THING A CURRENT BLACK EMPLOYEE CHARLIE MIXON ONCE NOMINATED FOR SECURITY OFFICER OF THE MONTH ALLEGES THAT THIS COMPANY IS RUN LIKE A PLANTATION CURRENT AND FORMER EMPLOYEES SAY THERE IS ONLY ONE BLACK AMONG THE FIRM'S ROUGHLY 200 WHITECOLLAR OR PROFESSIONAL EMPLOYEES MR SHORENSTEIN WON'T DIVULGE THAT NUMBER BUT HE SAYS IT IS DIFFICULT TO FIND QUALIFIED BLACK CANDIDATES AND NOTES THAT MINORITIES IN GENERAL MAINLY ASIANAMERICANS AND HISPANICAMERICANS MAKE UP 25 OF THE PROFESSIONAL STAFF I CAME IN TO THIS BUSINESS AS A MINORITY AND I KNOW WHAT THIS IS ALL ABOUT SO DON'T SAY TO ME THAT THE COMPANY DISCRIMINATES SAYS MR SHORENSTEIN THE LAST THING IN THE WORLD WE WANT IS ANYONE COMING IN HERE AND SAYING HEY YOU ARE DISCRIMINATING AGAINST OUR PEOPLE' HE SAYS NOTING THAT THAT WOULD HINDER HIS POLITICAL FUND RAISING WITH ORGANIZATIONS REPRESENTING MINORITIES AND WOMEN AT ONE POINT HE PRESENTS A POEM PRAISING HIM THAT WAS PENNED BY ONE OF HIS OFFICE JANITORS JOSE LUIS PARADA THE LAST THING IN THE WORLD I WANT TO DO IS STOMP ON ANYBODY MR SHORENSTEIN SAYS WHILE MOST MEN HIS AGE HAVE LONG SINCE RETIRED MR SHORENSTEIN SAYS HE STILL WORKS FULL DAYS IN HIS 49THFLOOR OFFICE AND HAS NO PLANS TO RETIRE HIS 38YEAROLD SON DOUGLAS IS HEIR APPARENT AND AS PRESIDENT OF SHORENSTEIN CO RUNS DAILY OPERATIONS THOUGH MAJOR DECISIONS ARE MADE JOINTLY WHY DO I WORK SO HARD ASKS MR SHORENSTEIN ESCORTING A VISITOR OUT OF HIS OFFICE AND POINTING OUT ONE OF HIS MOST PRIZED POSSESSIONS A PEN PRESIDENT JOHNSON USED TO SIGN THE CIVIL RIGHTS ACT BECAUSE HE SAYS IT'S FUN FRANK ROBINSON WAS THE FIRST BLACK MANAGER OF THE SAN FRANCISCO GIANTS BASEBALL TEAM A PAGEONE ARTICLE YESTERDAY ABOUT REALESTATE TYCOON WALTER SHORENSTEIN MISTAKENLY SAID THAT DISTINCTION BELONGED TO DUSTY BAKER THE TEAM'S CURRENT MANAGER SEE RELATED LETTER LETTERS TO THE EDITOR A REMARKABLE MAN UNFAIRLY PILLORIED WSJ JUNE 25 1993 9306010056 YY93 MM06 9306250124 930625 WHO'S NEWS SCHERINGPLOUGH CORP SCHERINGPLOUGH CORP MADISON NJ THIS RESEARCHBASED PHARMACEUTICAL COMPANY SAID IT NAMED NEW TOP EXECUTIVES AT ITS SCHERINGPLOUGH RESEARCH INSTITUTE UNIT ALEXANDER Z LANE 63 YEARS OLD WAS NAMED CHAIRMAN OF THE INSTITUTE AND JONATHAN R SPICEHANDLER 44 WHO HAD BEEN VICE PRESIDENT OF OPERATIONS WAS NAMED PRESIDENT SUCCEEDING DR LANE WHO WILL BE RETIRING IN 1994 DR SPICEHANDLER WILL OVERSEE ALL OPERATIONS OF THE INSTITUTE AND WILL CONTINUE TO OVERSEE ALL THERAPEUTIC PROJECT TEAMS AND REMAIN CHAIRMAN OF THE CARDIOVASCULAR THERAPEUTIC PROJECT TEAM 9306250123 930625 PILKINGTON RESPONDS TO LAWSUIT SUNNYVALE CALIF PILKINGTON BARNES HIND SAID ITS COLORED CONTACT LENS PRODUCTS DON'T INFRINGE ON PATENTS HELD BY WESLEYJESSEN CORP A UNIT OF MADISON NJBASED SCHERINGPLOUGH CORP THE COMPANY A UNIT OF UKBASED PILKINGTON PLC SAID IT WAS RESPONDING TO A SUIT FILED BY SCHERINGPLOUGH IN US DISTRICT COURT IN WILMINGTON DEL ON JUNE 14 IT SAID PBH'S NATURAL TOUCH AND ELEGANCE BRAND COLORED CONTACT LENSES ARE THE PRODUCTS OF INDEPENDENT RESEARCH AND DEVELOPMENT CONDUCTED BY PBH AND COVERED BY PATENTS HELD BY THIS BUSINESS THE COMPANY SAID IT PLANS TO CONTEST THE LITIGATION AND EXPECTS TO PREVAIL 9306250122 930625 MONEY FUND ASSETS FELL BY 454 BILLION IN MOST RECENT WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 454 BILLION TO 57829 BILLION FROM 58283 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 640 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 138 BILLION TO 38936 BILLION THE TRADE GROUP SAID ASSETS OF 400 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 5883 MILLION TO 30829 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 7939 MILLION TO 8106 BILLION ASSETS OF THE 267 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 316 BILLION TO 18893 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 214 TAXABLE MONEY MARKET FUNDS FELL BY 255 BILLION TO 16830 BILLION ASSETS OF 53 TAXEXEMPT FUNDS FELL BY 6150 MILLION TO 2064 BILLION 9306250121 930625 INTERNATIONAL OECD SAYS JOBLESS RATE ROSE PARIS THE AVERAGE UNEMPLOYMENT RATE IN THE MAJOR INDUSTRIALIZED COUNTRIES CREPT UP TO 77 IN APRIL FROM 76 IN MARCH THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID FURTHER APRIL'S RATE WAS 04 PERCENTAGE POINT ABOVE THAT OF THE SAME MONTH A YEAR EARLIER EUROPE'S AVERAGE UNEMPLOYMENT ROSE BY 01 PERCENTAGE POINT IN APRIL TO 102 WHILE THAT OF THE US WAS UNCHANGED AT 69 CANADA'S JOBLESS RATE CLIMBED TO 113 FROM 11 WHILE THE RATE IN JAPAN WAS UNCHANGED FOR THE FOURTH STRAIGHT MONTH AT 23 THE OECD SAID PRELIMINARY DATA FOR MAY SHOW A DECLINE IN THE LEVEL OF UNEMPLOYMENT IN THE US AND BRITAIN BUT AN INCREASE IN BELGIUM AND IRELAND THE RATES IN CANADA AUSTRALIA AND SWEDEN SHOWED NO CHANGE IN THE MONTH THE SECRETARIAT SAID 9306250120 930625 SESSIONS MEETS WITH RENO OVER POSSIBLE RESIGNATION WASHINGTON WILLIAM SESSIONS CONTINUED TO NEGOTIATE TERMS FOR HIS POSSIBLE RESIGNATION AS DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION BUT HE APPARENTLY DIDN'T REACH AN AGREEMENT YESTERDAY IN TALKS WITH ATTORNEY GENERAL JANET RENO MR SESSIONS MET YESTERDAY MORNING FOR QUITE A WHILE WITH MS RENO BUT AFTERWARD THE ATTORNEY GENERAL'S OFFICE WOULD SAY ONLY THAT WILLIAM SESSIONS IS STILL THE FBI'S DIRECTOR SAID CARL STERN THE JUSTICE DEPARTMENT'S TOP SPOKESMAN FURTHER PROGRESS IN THE NEGOTIATIONS ISN'T EXPECTED UNTIL NEXT WEEK BOTH MR SESSIONS AND MS RENO LEFT YESTERDAY ON OUTOFTOWN TRIPS MR SESSIONS WAS ACCUSED IN JANUARY BY JUSTICE DEPARTMENT ETHICS OFFICIALS OF A VARIETY OF INFRACTIONS INCLUDING USING FBI AIRCRAFT FOR PERSONAL TRIPS HE HAS DENIED ANY WRONGDOING CLINTON ADMINISTRATION OFFICIALS HAVE SAID PRIVATELY THAT THEY WANT TO REPLACE MR SESSIONS BUT THEY WOULD PREFER THAT HE RESIGN RATHER THAN FORCE THE PRESIDENT TO FIRE HIM THE APPARENT HITCH IS OVER THE TERMS OF HIS RESIGNATION INCLUDING HIS PENSION AND THE ADMINISTRATION'S FINAL WORD ON HIS ALLEGED ETHICAL PROBLEMS LAWYERS FOR MR SESSIONS DIDN'T RETURN TELEPHONE MESSAGES YESTERDAY 9306250119 930625 RP SCHERER ORAL DRUG VENTURE TROY MICH RP SCHERER CORP SAID IT SIGNED A DEVELOPMENTANDLICENSE AGREEMENT WITH BRITAIN'S GLAXO HOLDINGS PLC TO FORMULATE A RAPIDLY DISSOLVING ORAL DRUG THAT TREATS NAUSEA AND VOMITING UNDER THE AGREEMENT GLAXO WILL PAY RP SCHERER A MAKER OF DRUGDELIVERY SYSTEMS AN UNDISCLOSED AMOUNT TO DEVELOP A ZYDIS PRODUCT FOR ITS ZOFRAN TREATMENT FOR NAUSEA AND VOMITING CAUSED BY CHEMOTHERAPY AND RADIOTHERAPY RP SCHERER'S PATENTED ZYDIS DOSAGE FORM ENABLES PRODUCTS TO DISSOLVE RAPIDLY ON THE TONGUE REQUIRING NO WATER FOR SWALLOWING 9306250118 930625 STONE CONTAINER PLANS DEBT SALE OF 400 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO STONE CONTAINER CORP DISCLOSED PLANS FOR A NEW FINANCING PACKAGE INVOLVING THE SALE OF 400 MILLION IN HIGHYIELDING NOTES AND CONVERTIBLE DEBT DESIGNED TO ENHANCE THE COMPANY'S LIQUIDITY AND ASSURE THAT THE HIGHLY LEVERAGED PACKAGING CONCERN CAN MAKE AN UPCOMING BANK PAYMENT THE PLAN SUCCEEDS AN EFFORT TO BOLSTER THE COMPANY'S BALANCE SHEET WHICH FELL APART THREE MONTHS AGO IT'S THE FIRST STAGE OF AN OVERALL PLAN TO DELEVERAGE THE COMPANY SAID ARNOLD F BROOKSTONE CHIEF FINANCIAL OFFICER IN APRIL STONE FRIGHTENED INVESTORS SAYING IT INTENDED TO OFFER AS MUCH AS 500 MILLION IN STOCK AND 300 MILLION IN DEBT STONE SHARES SWIFTLY LOST HALF THEIR VALUE AS INVESTORS INTERPRETED THAT EARLIER PLAN AS A SIGNAL THAT STONE WAS UNDER PRESSURE FROM ITS LENDERS WITHIN DAYS HOWEVER STONE SHELVED INDEFINITELY THE YOFFERING PORTION OF THE PLAN AND PUT THE DEBT OFFERING UNDER REVIEW THE STOCK PRICE RECOVERED JUST A PORTION OF WHAT IT LOST IN APRIL STONE'S NEW PLAN STILL INCLUDES THE POTENTIAL FOR DILUTION HOWEVER STONE'S STOCK ROSE YESTERDAY IN ANTICIPATION OF AN ANNOUNCEMENT BUT FELL FROM A 975ASHARE HIGH TO CLOSE UP JUST 125 CENTS AT 875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY SAID YESTERDAY THAT IT PLANS TO NEXT MONTH PUBLICLY OFFER 150 MILLION PRINCIPAL AMOUNT OF FIVEYEAR SENIOR NOTES PAYING 12625 SALOMON BROTHERS INC AND BT SECURITIES CORP WILL UNDERWRITE THE OFFERING IN ADDITION THE COMPANY SAID IT REACHED AN AGREEMENT TO PRIVATELY PLACE AT THE SAME TIME 250 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SENIOR SUBORDINATED NOTES WHICH PAY 8875 INTEREST AND ARE CONVERTIBLE INTO COMMON STOCK AT AN EXERCISE PRICE OF 1155 A SHARE IN THE EVENT OF FULL CONVERSION STONE WOULD ISSUE ABOUT 216 MILLION NEW SHARES REPRESENTING AN INDICATED 23 STAKE PROCEEDS FROM THE NOTE SALES ABOUT 386 MILLION WILL BE USED TO REPAY MONEY STONE OWES UNDER ITS REVOLVING LINE OF CREDIT WITH BANK LENDERS MOODY'S INVESTORS SERVICE YESTERDAY CONFIRMED STONE'S 19 BILLION OF DEBT CONCLUDING A REVIEW FOR POSSIBLE DOWNGRADE THAT IT BEGAN IN APRIL MUCH OF THE DEBT BURDEN UNDER WHICH STONE HAS BEEN LABORING IS THE RESULT OF ITS 22 BILLION 1989 ACQUISITION OF CONSOLIDATEDBATHURST LAST MONTH STONE SIGNALED THAT IT IS CONSIDERING THE SALE OF A STAKE IN ITS NEWSPRINT AND GROUNDWOOD OPERATIONS THROUGH AN INITIAL OFFERING IN CANADA 9306250117 930625 US MAKERS TO BUILD TOTAL OF 226257 CARS AND TRUCKS IN WEEK DETROIT THE 10 US AUTO MAKERS PLAN TO BUILD A TOTAL OF 226257 CARS AND TRUCKS THIS WEEK MORE THAN DOUBLE THE 98061 VEHICLES BUILT A YEAR AGO IN THE YEARAGO WEEK ASSEMBLY PLANTS AT FORD MOTOR CO AND HONDA MOTOR CO WERE IDLE FOR SUMMER VACATIONS CHRYSLER CORP SAID THAT BEGINNING MONDAY ITS JEEP ASSEMBLY PLANT WILL BE IDLE FOR MODEL CHANGEOVER UNTIL JULY 19 FORD SAID IN DECEMBER IT WILL BOOST PRODUCTION OF ITS FOURDOOR EXPLORER SPORTUTILITY VEHICLE BY 500 UNITS THE EXPLORER IS BUILT AT FORD'S LOUISVILLE KY ASSEMBLY PLANT THE ADDITIONAL PRODUCTION WILL ADD 9500 EXPLORERS TO PRODUCTION DURING THE 1994 MODEL YEAR BUT THERE ARE NO PLANS TO HIRE ADDITIONAL WORKERS MEANWHILE FORD CHRYSLER AND GENERAL MOTORS CORP SAID THEY HAVE PLANNED OVERTIME AT SEVERAL US ASSEMBLY PLANTS 9306250116 930625 FINLAND'S CURRENT ACCOUNT STOCKHOLM THE BALANCE ON FINLAND'S CURRENT ACCOUNT SWUNG TO A SURPLUS IN MAY OF 600 MILLION MARKKAA 106 MILLION AFTER A TWO BILLIONMARKKAA DEFICIT IN APRIL THANKS TO A SHARPLY IMPROVED TRADE SURPLUS FIGURES FROM THE BANK OF FINLAND THE CENTRAL BANK OF FINLAND SHOWED IN THE MONTH THE TRADE SURPLUS GREW TO 36 BILLION MARKKAA FROM 16 BILLION A MONTH EARLIER 9306250115 930625 INTERNATIONAL ALCATELALSTHOM'S EXPECTATIONS PARIS ALCATELALSTHOM CHAIRMAN PIERRE SUARD TOLD SHAREHOLDERS THURSDAY THAT IN THE CONTEXT OF 1993'S DIFFICULT FINANCIAL ENVIRONMENT THE FRENCH TELECOMMUNICATIONS ENERGY AND TRANSPORTATION CONCERN EXPECTS TO REALIZE A 5 TO 8 DECLINE IN REVENUE THIS YEAR FROM THE 1617 BILLION FRANCS 284 BILLION IT POSTED IN 1992 MR SUARD ALSO CONFIRMED THAT THE GROUP'S GOAL FOR 1993 IS TO KEEP PROFIT EQUIVALENT TO THE PREVIOUS YEAR'S LEVEL THIS SEEMS POSSIBLE TO ME THANKS TO EFFORTS TO IMPROVE EFFICIENCY HE SAID ALCATEL PREVIOUSLY POSTED NET INCOME OF 705 BILLION FRANCS IN 1992 UP FROM 618 BILLION FRANCS IN 1991 9306250114 930625 KOREAN FIRMS INCREASE OFFSHORE INVESTMENTS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREAN COMPANIES MADE OFFSHORE INVESTMENTS TOTALING 741 MILLION IN THE FIRST FIVE MONTHS OF THIS YEAR A 61 RISE FROM 459 MILLION IN THE YEAREARLIER PERIOD THE BANK OF KOREA SAID THE NUMBER OF CORPORATE OFFSHORE INVESTMENTS ROSE TO 365 FROM 244 THE CENTRAL BANK SAID THE BANK ATTRIBUTED THE SHARP RISE IN SUCH INVESTMENTS TO SOUTH KOREAN COMPANIES INCREASINGLY MOVING THEIR OPERATIONS ABROAD TO TAKE ADVANTAGE OF LOW LABOR COSTS PARTICULARLY IN CHINA AT THE END OF MAY FOREIGN INVESTMENTS OUTSTANDING BY SOUTH KOREAN COMPANIES REACHED 63 BILLION OR 2870 PROJECTS 9306250113 930625 MARKETING & MEDIA CALLER ID SERVICES ACCUSED OF INVADING INDIVIDUALS' PRIVACY NAMES ADDRESSES AND NUMBERS MAY BE SOLD TO MARKETERS CONGRESSIONAL PANEL IS TOLD BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CALLERS BEWARE THAT'S THE MESSAGE FROM A CONGRESSIONAL HEARING ABOUT HOW CALLER IDENTIFICATION SERVICES OFFERED BY TELEPHONE COMPANIES CAN INVADE AN INDIVIDUAL'S PRIVACY PEOPLE WHO CALL 800 OR 900NUMBERS AREN'T AWARE THAT THEIR PHONE NUMBERS ARE BEING USED TO LEARN THEIR IDENTITY AND THAT THEIR NAMES AND ADDRESSES MAY BE SOLD AS PART OF A MAILING LIST SAID MARY J CULNAN AN ASSOCIATE BUSINESS PROFESSOR AT GEORGETOWN UNIVERSITY IN TESTIMONY BEFORE THE HOUSE TELECOMMUNICATIONS PANEL MS CULNAN REFERRED TO A LIST OF POTENTIAL CUSTOMERS NOW BEING OFFERED TO DIRECT MARKETERS THAT WAS OBTAINED THROUGH A JOHNSON & JOHNSON TOLLFREE NUMBER AND OTHER PROMOTIONS FOR SERENITY INCONTINENCE PADS DIRECT MARKETERS ARE ABLE TO NARROW THE LIST BASED ON A WOMAN'S AGE INCOME CREDIT CARDS AND OTHER CATEGORIES A JOHNSON & JOHNSON SPOKESMAN ACKNOWLEDGED A TEST PROGRAM IN WHICH IT IS SELLING THE LIST OF NAMES WE MAKE THE DECISION BASED ON WHO IS INTERESTED WHAT KIND OF BUSINESS THEY ARE IN AND HOW THEY WOULD USE IT HE SAID ASKED WHAT THE COMPANY'S CUSTOMERS MIGHT THINK ABOUT THEIR NAMES AND NUMBERS BEING SOLD HE SAID THAT IS WHY WE ARE KEEPING SUCH A CAREFUL EYE ON HOW THE LIST IS USED RECENTLY MS CULNAN SAID A LIST COMPANY STARTED PEDDLING NAMES AND ADDRESSES OF WOMEN WHO PURCHASED THE BUNS OF STEEL EXERCISE VIDEO THE BUNS LIST PROMPTED SUBCOMMITTEE CHAIRMAN EDWARD MARKEY TO FIRE OFF A LETTER TO ATTORNEY GENERAL JANET RENO ASKING THE JUSTICE DEPARTMENT TO INVESTIGATE WHETHER THE LIST VIOLATES THE VIDEO PRIVACY PROTECTION ACT THE 1988 ACT BARS COMPANIES FROM DISCLOSING SPECIFIC TITLES OF VIDEOS THAT AN INDIVIDUAL CONSUMER MAY BUY RENT OR WATCH ON A PAYPERVIEW BASIS WITHOUT THE CONSUMER'S WRITTEN CONSENT AS A RESULT OF THESE CONCERNS THE SUBCOMMITTEE IS WEIGHING A BILL THAT WOULD LIMIT THE USE OF AUTOMATIC NUMBER IDENTIFICATION OR ANI DATA OBTAINED FROM LONGDISTANCE CALLS ESPECIALLY THOSE TO 800AND 900NUMBERS THE MEASURE ALSO WOULD REQUIRE COMPANIES TO OBTAIN A CALLER'S CONSENT BEFORE REUSING OR SELLING PERSONAL INFORMATION GLEANED FROM CALLS AT A MINIMUM LAWMAKERS ARE LEANING TOWARD REQUIRING PHONE COMPANIES TO LET CALLERS BLOCK THE TRANSMISSION OF THEIR NUMBERS BY PUNCHING IN A BRIEF CODE BEFORE DIALING A PHONE NUMBER REGULATORS IN MOST STATES THAT HAVE APPROVED CALLER ID ALREADY REQUIRE SUCH PERCALL BLOCKING TELEPHONE COMPANIES THAT ONCE FOUGHT AGAINST BLOCKING THE TRANSMISSION OF NUMBERS ARE RESIGNED TO THE IDEA YESTERDAY BELL ATLANTIC CORP'S NEW JERSEY BELL UNIT ANNOUNCED PLANS TO OFFER PERCALL BLOCKING ALONG WITH A NEW SERVICE THAT LETS SUBSCRIBERS WHO HAVE SIGNED UP FOR CALLER ID SERVICE REJECT CALLS FROM PEOPLE WHO BLOCK THEIR NUMBERS THE AUTOMATIC CALL REJECTION SERVICE WOULD BE CALLED BLOCK THE BLOCKER 9306250112 930625 SANDOZ DRUG PROVES EFFECTIVE IN TREATING WOMEN'S MIGRAINES SAN FRANCISCO SANDOZ PHARMACEUTICAL CORP SAID A STUDY HAS SHOWN THAT MIGRAINE HEADACHES ASSOCIATED WITH MENSTRUATION ARE HIGHLY RESPONSIVE TO ITS DHE45 INJECTION DRUG TREATMENT THE RESULTS OF THE STUDY WILL BE PRESENTED HERE STARTING TODAY AT A MEETING OF THE AMERICAN ASSOCIATION FOR THE STUDY OF HEADACHE SAID THE EAST HANOVER NJ COMPANY A UNIT OF SWITZERLAND'S SANDOZ LTD THE STUDY WAS FUNDED BY SANDOZ SANDOZ SAID 278 WOMEN WITH ACUTE MIGRAINE WERE STUDIED AS PART OF A LARGER NATIONAL SAMPLE OF MEN AND WOMEN OF THE WOMEN 87 WERE DIAGNOSED WITH PERIMENSTRUAL MIGRAINE A SINGLE ONEMILLIGRAM INJECTION OF DHE45 SHARPLY REDUCED OR ELIMINATED HEADACHE PAIN IN 46 OF PATIENTS WITHIN 30 MINUTES AND IN 72 WITHIN AN HOUR THE COMPANY SAID A SIGNIFICANT NUMBER OF PATIENTS WHO REQUIRED A SECOND DOSE HAD MILD OR NO PAIN WITHIN 60 MINUTES OF RECEIVING THE SECOND INJECTION SANDOZ SAID 86 REMAINED HEADACHEFREE AFTER 24 HOURS THE DRUG WAS ALSO WELL TOLERATED BY PATIENTS WHOSE MIGRAINES WERE ACCOMPANIED BY NAUSEA DHE45 IS CURRENTLY AVAILABLE AS AN INTRAVENOUS AND INTRAMUSCULAR INJECTION IN THE US A NASAL SPRAY FORMULATION OF THE DRUG IS NOW AWAITING MARKETING APPROVAL IN CANADA DHE45 IS ADDITIONALLY APPROVED FOR BELOWTHESKIN ADMINISTRATION 9306250111 930625 SWISS WATCHMAKER BUILDS TIMEPIECES FROM RECYCLED SCRAP MONDAINE GRABS MARKET SHARE WITH INNOVATION TARGETING THE ECOLOGICALLY MINDED BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL SWISS WATCH MANUFACTURER RONNIE BERNHEIM GETS EXCITED WHEN HE TALKS ABOUT HOUSEHOLD SCRAP MR BERNHEIM DOESN'T WANT TO THROW WASTE AWAY HOWEVER HE MAKES INTO DESIGNER TIMEPIECES WHAT OTHERS REJECT AS READY FOR THE DUMP THE LIFE OF A MONDAINE WATCH LTD ECOLOGICAL WATCH THE ECOMATIC BEGINS NEAR BASEL HERE A GROUP OF WATCHMAKERS RETAILERS AND WHOLESALERS GATHERS AT SWISS METALWORKS LTD A COPPER PRODUCTS PRODUCER HIRED TO SMELT SCRAP FOR MR BERNHEIM'S BRAINCHILD BEFORE THEM IS A CURIOUS PILE OF THROWNAWAY ROOF GUTTERS TELEPHONE WIRE HOUSEHOLD APPLIANCES AND COCACOLA AND RIVELLA SOFT DRINK CANS A TURNOFTHECENTURY BABY'S BATHTUB TOPS THE MOUNTAIN OF CONSUMER LEFTOVERS A BELT CARRYING 11 TONS OF SCRAP BEGINS TO MOVE AND MR BERNHEIM'S COLLECTION OF REJECTS DISAPPEARS INTO A BLAZING FURNACE TO EMERGE FARTHER DOWN THE PRODUCTION LINE AS SHINY METAL RODS THAT WILL BE CONVERTED AT A NEARBY FACTORY INTO SOCALLED ECOLOGICALLY FRIENDLY WATCHES LORENZ ALTENBACH A DORNBACH NOTARY PUBLIC STANDS BY READY TO SIGN GUARANTEES THAT THE METAL REALLY COMES FROM POSTCONSUMER RECYCLED WASTE IT'S A CHANGE FROM MY USUAL WORK SAYS MR ALTENBACH WHO ADMITS TO BEING MORE ACCUSTOMED TO SITTING BEHIND A DESK THAN STANDING IN FRONT OF A RAGING FURNACE WHOLESALERS SUCH AS SCHWEIZER UHRENHANDELS GMBH DIRECTOR MARCEL BUTZ AREN'T THERE TO CERTIFY MONDAINE'S ECOLOGICAL CLAIMS HOWEVER SEEING THOSE HOUSEHOLD ITEMS BE SMELTED FIRSTHAND ASSURES MR BUTZ THAT HIS ENVIRONMENTALLY AWARE CUSTOMERS REALLY ARE GETTING WHAT THEY WANT A GREEN PRODUCT MR BUTZ BASED IN RHEINFELDEN GERMANY SELLS TO 500 GERMAN DESIGNER SHOPS AND 200 SPECIALIZED WATCH SHOPS IN THE HIGHLY COMPETITIVE WORLD OF GLOBAL WATCHMAKING THE BERNHEIM FAMILYOWNED FIRM WITH HEADQUARTERS IN ZURICH IS SOMETHING OF A PHENOMENON ALTHOUGH SWISS WATCHMAKERS DOMINATE THE LUXURY END OF THE WORLD MARKET AND THE PLASTIC SWATCH GIVES SWITZERLAND A STRONG POSITION AT THE CHEAP END ASIAN PRODUCERS HAVE PROVED HARD TO BEAT IN THE MEDIUMPRICED METAL WATCH SEGMENT OF ITEMS THAT SELL FOR AROUND 80 TO A FEW HUNDRED DOLLARS IN FACT MONDAINE WITH ANNUAL ESTIMATED SALES OF AROUND 72 MILLION SWISS FRANCS 478 MILLION IS ONE OF THE FEW MODESTSIZED EUROPEAN COMPANIES THAT HAVE MADE THEIR MARK THIS IS AN INCREDIBLY TOUGH MARKET SEGMENT SAYS BANK JULIUS BAER ANALYST ROLAND LEUTENEGGER THERE IS A BITTER FIGHT FOR MARKET SHARE THE ANSWER SAYS MR BERNHEIM IS INNOVATIVE IDEAS AND AMONG MR BERNHEIM HIS FATHER ERWIN AND BROTHER ANDRE MONDAINE'S OTHER OWNERS IDEAS SEEM PLENTIFUL HISTORY OF INNOVATION IN THE 1970S THE COMPANY SAYS IT WAS AMONG THE FIRST TO DEVELOP DIGITAL WATCHES BOVERI & CO MONDAINE PRODUCED THE FIRST DIGITAL WATCHES WITH LIQUIDCRYSTAL DISPLAYS IT INTRODUCED TO THE WORLD MARKET THE FIRST CONSUMERPROGRAMMABLE LCD WATCH WITH MICROPROCESSOR INSTEAD OF GOING TO A WATCHMAKER TO ADJUST THE SPEED FOR CHANGES IN CLIMATE CONSUMERS COULD DO IT THEMSELVES IN THE 1980S THE COMPANY CLAIMED INNOVATIONS WITH TWO NEW CASE CONSTRUCTIONS FOR WATERRESISTANT WATCHES WITH SHAPED GLASS ROUND FORMS ARE EASY TO MAKE WATER RESISTANT BUT OTHER SHAPES AREN'T NOW IN THE 1990S MONDAINE IS BETTING ON WHAT THE BERNHEIMS CALL THE POSTCONSUMER RECYCLED WATCH BY POSTCONSUMER MR BERNHEIM MEANS RECYCLED METAL THAT ORIGINATES 100 FROM HOUSEHOLDS INDUSTRIAL WASTE COULD BE USED BUT RECYCLING GOODS THAT HAVE BEEN IN USE BY CONSUMERS HAS A PERSONAL IMPACT HE MAINTAINS MR BERNHEIM EXPLAINS THAT ONCE WATCHMAKERS CONCENTRATED ON PRECISION AS THEIR MAJOR SELLING POINT THEN CAME DESIGN NOW HE BELIEVES WITH PRECISION AND DESIGN ESTABLISHED THE WAVE OF THE FUTURE IS THE BUILDING INTO WATCHES OF PHILOSOPHICAL VALUES A LOT OF PEOPLE WANT TO COMMUNICATE THAT THEY ARE ECOLOGICALLY AWARE MONDAINE'S WATCHES DON'T SCREAM GREEN EXCEPT FOR THE NAME ON THE FACE ECOMATIC AND A SENTENCE ON THE BACK OF THE TIMEPIECE READING 100 RECYCLED CASE THERE IS LITTLE TO DISTINGUISH ONE FROM OTHER METAL WATCHES TO CRITICS WHO SAY MONDAINE'S ECOLOGICAL THRUST IS A GAG MR BERNHEIM REPLIES WE KNOW THAT WE WON'T SAVE THE WORLD BY SMELTING A FEW TONS OF METAL BUT WE REALLY DO BELIEVE IN THIS INDUSTRY SHOULD PUT MORE EMPHASIS ON CREATING PRODUCTS WHERE COMPONENTS CAN BE SEPARATED AND RECYCLED IN 1987 MONDAINE LAUNCHED ITS FIRST RAILWAY WRISTWATCH WITH THE FACE OF A CLOCK TYPE THAT HANGS IN EVERY SWISS STATION TODAY MONDAINE IS MANUFACTURING THIS WATCH OUT OF WASTE MATERIAL THE WATCH HAS RECEIVED THE GERMAN DESIGN AWARD DESIGNPLUS 93 AND THE ECOLOGICAL AWARD FROM PRINCE SADRUDDIN AGA KHAN PRESIDENT OF THE ALP ACTION FOUNDATION ACCORDING TO MR BERNHEIM RECYCLED TIMEPIECES ARE A BRISK BUSINESS SOME 100000 UNITS WERE SOLD IN 1992 THE FIRST MARKETING YEAR AND IN 1993 SALES ARE EXPECTED TO DOUBLE HE SAYS THE RAILWAY RECYCLED WATCH IS A REAL HIT IN GERMANY EXCLAIMS MR BUTZ IN THE SHOPS HIS MODELS SELL FOR BETWEEN 166 MARKS AND 280 MARKS 98 AND 166 ALL AGES ARE BUYING THEM HE ADDS MR BERNHEIM DECLINES TO DISCLOSE PROFIT FIGURES BUT HE ASSERTS CONFIDENTLY WE HAVE ALWAYS BEEN PROFITABLE BECAUSE WE GIVE CONSUMERS WHAT THEY WANT 9306250110 930625 THE AMERICAS MEXICO ADOPTS A BOTTOMUP ENVIRONMENTAL POLICY BY HOLLY E NEUMANN CALAKMUL RESERVE MEXICO A DECREE DOESN'T PRESERVE A NATURAL PROTECTED AREA INSISTS CAMPECHE GOVERNOR JORGE SALOMON AZAR IT PUTS US IN THE POSITION OF HAVING TO SEND POLICE OR GUARDS INTO TOO LARGE AN AREA WELL WE JUST DON'T HAVE THE RESOURCES TO DO IT AND LATER WE'D HAVE TO SEND IN GUARDS TO WATCH THE GUARDS THE ONLY WAY WE SEE OF PROTECTING THIS AREA IS INVOLVING THOSE WHO LIVE WITHIN IT IN A BELLWETHER ACCORD MEXICO'S FEDERAL GOVERNMENT RECENTLY TRANSFERRED MANAGEMENT OF THIS 2792 SQUAREMILE BIOSPHERE RESERVE DEFINED AS BIOLOGICALLY AND GEOGRAPHICALLY DISTINCTIVE AREAS THAT BOAST AT LEAST ONE UNALTERED ZONE CONTAINING THREATENED ENDEMIC SPECIES TO THE STATE OF CAMPECHE THE STATE GOVERNMENT SIMULTANEOUSLY SIGNED OVER SHARED MANAGEMENT TO PRONATURA PENINSULA YUCATAN A NONPROFIT CONSERVATION ORGANIZATION FOUNDED BY MEXICAN BUSINESSMEN THE STRATEGIC IMPORTANCE OF THE CALAKMUL ACCORD IS THE GOVERNMENT'S OFFICIAL RECOGNITION FOR THE FIRST TIME THAT INVOLVEMENT OF LOCAL COMMUNITIES IN THE MANAGEMENT OF NATURAL PROTECTED AREAS IS ESSENTIAL TO THE CONSERVATION PROCESS IN THE CASES IN WHICH THERE ARE LOCAL INSTITUTIONS THAT ARE ENGAGED IN ENVIRONMENTAL PROTECTION AND HAVE TAKEN A FIRM COMMITMENT TO PROTECT NATURAL AREAS WE ARE WILLING TO DECENTRALIZE THE AREA SAYS EXEQUIEL EZCURRA MEXICO'S DIRECTOR OF NATURAL RESOURCES THIS BOTTOMUP INVOLVEMENT IS NOW WIDELY THOUGHT TO BE THE MOST EFFECTIVE WAY TO RUN NATURAL PROTECTED AREAS IN DEVELOPING COUNTRIES MANAGING THESE AREAS FROM TOP DOWN AND FROM AFAR HASN'T WORKED BUT TO TURN LOCAL RESIDENTS INTO PRODUCTIVE DEFENDERS OF THE ENVIRONMENT WITHOUT A TOPDOWN APPROACH IS A CHALLENGE IN A COUNTRY WHERE POLITICAL ATTITUDES HAVE BEEN SHAPED BY A MUCH MORE CENTRIST MINDSET THIS AREA'S 12000 RESIDENTS HAVE TRADITIONALLY SCRATCHED FROM ITS EARTH A SUBSISTENCE LIVING MANY ARE MAYAS DESCENDANTS OF THOSE WHO MORE THAN 1500 YEARS AGO BUILT ONE OF THE MAYAN EMPIRE'S LARGEST CITIES AT CALAKMUL ARCHAEOLOGICAL REMAINS OF THE CITY LIE AT THE HEART OF THE BIOSPHERE RESERVE OTHER RESIDENTS WERE TRUCKED IN DECADES AGO TO CUT TIMBER OR TO TAP ZAPOTE TREES FOR THE RUBBERY CHICLE FROM WHICH CHEWING GUM IS MADE FOR THE PAST 30 YEARS STILL OTHERS HAVE BEEN GRANTED LAND PARCELS BY THE AGRARIAN REFORM AGENCY TO SETTLE MEXICO'S WILD SOUTHEAST THE KIND OF UNRESTRAINED EXPLOITATION THAT RESULTED HAS TAKEN A TOLL ON THE AREA SOIL SCIENTISTS CONFIRM THAT LOSS OF GROUND COVER HAS DEPLETED THE SOIL RAINFALL HAS DECREASED AND GAME HAS RECEDED FARTHER INTO THE FOREST NATIVE MAHOGANY AND ZAPOTE FORESTS BEGAN TO DISAPPEAR AS A RESULT OF DECADES OF LOGGING ALTHOUGH NO FORMAL MANAGEMENT PLAN FOR THE AREA EXISTS YET COMMUNITIES ARE NOW BEING TRAINED IN A LANDMANAGEMENT PROCESS KNOWN AS SUSTAINABLE DEVELOPMENT THE CONCEPT IMPLIES THAT DEVELOPMENT NEED NOT CONFLICT WITH ECOLOGICAL BALANCE TO SAVE THE RESERVE WE NEED TO BOOST THE INCOME THE QUALITY OF LIFE IN THE AREA SAYS THE RESERVE'S DIRECTOR DEOCUNDO ACOPA UNDER THE VISION PROMOTED BY THIS FORESTRY EXPERT THE RESERVE'S NUCLEUS AREA REMAINS UNTOUCHED JUST OUTSIDE THE NUCLEUS RESIDENTS CULTIVATE AND MARKET THE TREES THEY'VE PLANTED AS WELL AS BREED GAME BIRDS AND OTHER INDIGENOUS ANIMALS FEDERAL STATE LOCAL AND PRONATURA WORKERS HAVE TRAINED RESIDENTS TO MANAGE AND PROTECT TIMBER AND OTHER RESOURCES THEY STILL REMOVE ILLEGALLY TO MAKE ENDS MEET WHERE LOGGING IS PERMITTED OUTSIDE THE RESERVE'S VIRGIN NUCLEUS RESIDENTS PRACTICE REFORESTING METHODS FROM THEIR OWN NURSERIES THEY PLANT MAHOGANY AND OTHER NATIVE PRECIOUS WOODS TO HARVEST AS A FAMILY TRUST FUND IN 25 TO 50 YEARS THEY LEARN INTENSIVE ORGANIC AGRICULTURE METHODS THAT BOOST TO 10 YEARS FROM THREE THE LAND'S CULTIVABILITY WHILE BOLSTERING STAPLE CORN AND BEAN YIELDS THEY ALSO PLANT COMMERCIAL FRUIT AND VEGETABLES AND DEVELOP APIARIES EMPLOYING THE LOCAL HIGHYIELD AFRICANIZED BEES WHILE RESIDENTS NOW ENTER MARKETING CHANNELS DIRECTLY THEY REMAIN CAUTIOUS FOR EXAMPLE WARINESS OF THE COYOTE MIDDLEMEN THAT PAID THEM A PITTANCE TO RAVAGE THEIR OWN LAND PROMPTED BEEKEEPERS LAST YEAR TO TURN DOWN AN OFFER FROM THE STATE'S LARGEST HONEY PRODUCER TO BUY THEIR ENTIRE PRODUCTION AT A 10 PREMIUM ABOVE THE LOCAL MARKET RATE THEY ENDED UP SELLING THE PRODUCTION TO HIM ANYWAY BUT AT THE LOWER MARKET PRICE BUT THERE ARE ADVANCES AS WELL RESIDENTS HAVE BEGUN SUBSTITUTING OTHER COMMERCIAL CROPS INCLUDING THE SLOWGROWING PRECIOUS WOODS FOR FRAGILE JALAPENO PEPPERS WHICH EASILY BRUISE AND ROT DURING TRANSPORT AND WHICH ARE HIGHLY SUSCEPTIBLE TO PRICE FLUCTUATIONS THIS SUSTAINABLE DEVELOPMENT PROCESS IS BEGINNING TO PROVIDE RESIDENTS A DIGNIFIED STABLE LIVELIHOOD BUT A PROVEN SYSTEM WILL TAKE AT LEAST SEVEN YEARS TO ACHIEVE SAYS GOV AZAR LONGER THAN HIS TERM IN OFFICE THIS TIME FACTOR INDICATES HOW ESSENTIAL COOPERATION IS TO THE CONTINUITY OF CALAKMUL AND OTHER RESERVES AND THIS CONTRASTS MIGHTILY WITH THE OLD SYSTEM IN WHICH A RULINGPARTY GOVERNOR WOULD INITIATE HIS OWN SELFAGGRANDIZING PROJECTS THAT WOULD LAST ONLY AS LONG AS HIS TERM CHALLENGES TO MANAGEMENT OF THE AREA CAN COME FROM THE GOVERNMENT ITSELF AS WELL AS FROM PEASANT LAND OWNERS LESS THAN TWO YEARS AGO A THENFEDERAL OFFICIAL SUGGESTED THAT A VIABLE SOURCE OF INCOME FOR THE GOVERNMENT SHOULD BE ISSUANCE OF 5000 LICENSES FOR HUNTING THE ENDANGERED JAGUARS THAT LIVE IN CALAKMUL IN A MORE CURRENT EXAMPLE THE AGRICULTURE SECRETARIAT IS PREPARING A LEGAL RESPONSE TO EXPLAIN ITS RETROACTIVE LICENSING OF ILLEGAL TIMBER CUTTERS CAUGHT TWO MONTHS AGO BY RESIDENTS ONE RESIDENT COMPLAINED IT'S IMPOSSIBLE TO PREVENT CLANDESTINE ACTIVITIES IN THE RESERVE IF AGRICULTURE DOESN'T EVEN STOP ILLEGAL WOODCUTTING BUT WHILE IT'S DIFFICULT TO PROVIDE MANAGEMENT OF THE AREA ON SITE IT IS LOGISTICALLY IMPOSSIBLE TO MANAGE THE NATION'S PROTECTED AREAS FROM A DESK IN MEXICO CITY WITHOUT COOPERATION FROM LOCAL RESIDENTS THERE COULD BE NO RESERVE ONLY STEADY DEPREDATION OF THE AREA THE CALAKMUL ACCORD IS AN OPPORTUNITY TO PROVE THAT DEVELOPMENT AND PRESERVATION OF NATURAL RESOURCES CAN BE COMPATIBLE GOALS AND THUS SERVE AS A PATTERN FOR SIMILAR DEVELOPINGNATION RESERVES THE IDEA THAT A NATURAL PROTECTED AREA CAN'T BE TOUCHED IS VERY LIMITED SAYS GOV AZAR IF WE DON'T PROMOTE DEVELOPMENT IN THE AREA WE CAN'T PROTECT IT NO ONE WILL BE ABLE TO PROTECT IT MS NEUMANN IS A WRITER LIVING IN MEXICO CITY 9306250108 930625 ASPIN SEEMS TO REPUDIATE WINHOLDWIN' POLICY WASHINGTON PENTAGON POLICY MAKERS AFTER SEVERAL MONTHS OF STUDY HAVE DECIDED THAT THE US MUST REMAIN ABLE TO FIGHT AND WIN TWO MAJOR REGIONAL CONFLICTS AND NEARLY SIMULTANEOUSLY DEFENSE SECRETARY LES ASPIN SAID HIS STATEMENT WHICH CAME IN A SPEECH AT ANDREWS AIR FORCE BASE APPEARS TO REPUDIATE RECENT RUMORS THAT MR ASPIN IN HIS PENDING BOTTOMUP REVIEW OF HOW TO RESHAPE THE US MILITARY TO FIT THE POSTCOLD WAR WORLD HAD SETTLED ON A WINHOLDWIN STRATEGY THAT STRATEGY WOULD HAVE HAD THE US WHEN FACED WITH TWO CONFLICTS FIGHTING ONE WAR BEFORE TURNING ITS FULL ATTENTION TO THE SECOND MR ASPIN'S SPEECH FOCUSED ON THE NEED IN THE BOTTOMUP REVIEW TO LOOK AT SOCALLED PEACETIME PRESENCE MISSIONS AS WELL AS DEALING WITH TWO REGIONAL CONFLICTS SOME PAROF OUR POSTCOLD WAR FORCES WILL BE SIZED AND SHAPED PRIMARILY BY OUR OVERSEAS PRESENCE NEEDS RATHER THAN POTENTIAL REGIONAL CONFLICTS HE SAID FOR EXAMPLE HE SAID THE NEED TO CONDUCT PRESENCE MISSIONS MEANS THE US MUST HAVE A LARGER NAVY THAN WOULD BE REQUIRED BY THE PROSPECT OF FACING TWO CONFLICTS BUT HE ADDED THE AIR FORCE MIGHT NONETHELESS BE USED TO FILL IN GAPS CREATED WHEN THE NAVY WAS UNABLE TO DEPLOY A CARRIER TO AN AREA 9306250107 930625 US IS URGED TO PRESS JAPAN ON STRONG YEN STUDY ALSO CALLS ON TOKYO TO REFORM SOME LAWS TO EASE TRADE TENSIONS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US SHOULD PRESS JAPAN TO KEEP THE YEN STRONG AND TO REFORM ITS PRODUCT LIABILITY PATENT AND ANTITRUST LAWS TO REDUCE TRADE TENSIONS A STUDY BY THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAID THE STUDY'S AUTHORS FRED BERGSTEN THE INSTITUTE'S DIRECTOR AND MARCUS NOLAND A RESEARCH FELLOW ARGUE THAT THE GROWING JAPANESE TRADE SURPLUS HAS DEPRESSED OUTPUT IN OTHER COUNTRIES AROUND THE WORLD AND INTENSIFIED THE GLOBAL SLOWDOWN THE AUTHORS URGE A SERIES OF BROAD ECONOMIC MEASURES AND SPECIFIC MARKET REFORMS TO REDUCE THAT SURPLUS WHICH COULD REACH 150 BILLION THIS YEAR THE INSTITUTE WHICH DEPARTS SOMEWHAT FROM ITS USUAL FREETRADE POSITIONS IN THIS STUDY IS ONE OF WASHINGTON'S MOST INFLUENTIAL THINK TANKS ITS STUDIES OFTEN FRAME INTELLECTUAL DEBATE ON TRADE AND TECHNOLOGY ISSUES AND ITS RESEARCHERS HAVE TAKEN SENIOR POSITIONS IN THE CLINTON ADMINISTRATION MR NOLAND RECENTLY BECAME A SENIOR ECONOMIST AT THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS AND WILL PARTICIPATE IN TRADE NEGOTIATIONS IN TOKYO SUNDAY AND MONDAY THAT WILL COVER MANY OF THE AREAS HE RESEARCHED FOR THE STUDY THE HEAD OF THE COUNCIL LAURA D'ANDREA TYSON WAS A VISITING FELLOW AT THE INSTITUTE AND PUBLISHED A BOOK ON INDUSTRIAL POLICY SHORTLY BEFORE TAKING HER NEW POSITION THE BERGSTENNOLAND STUDY CALLED RECONCILABLE DIFFERENCES RECOMMENDS THE US AND JAPAN ADOPT A YENDOLLAR TARGET ZONE AIMED AT KEEPING THE YEN BETWEEN 100 TO 110 YEN TO THE DOLLAR THAT TARGET WOULD BE ADJUSTED REGULARLY TO GUARD AGAINST THE YEN WEAKENING AS A RESULT OF DIFFERENT RATES OF INFLATION IN THE TWO NATIONS ON WEDNESDAY THE EXCHANGE RATE WAS 109 YEN TO THE DOLLAR IN AN INTERVIEW MR BERGSTEN SAID THE EXCHANGE RATE WAS NOW AT AN APPROPRIATE LEVEL BUT THAT THE CRUCIAL THING IS KEEPING IT THERE EVERY 1 RISE IN THE INFLATIONADJUSTED EXCHANGE RATE OF THE YEN CUTS JAPAN'S GLOBAL CURRENT ACCOUNT SURPLUS BY ABOUT 4 BILLION AFTER TWO YEARS THE STUDY CALCULATES THE CURRENT ACCOUNT IS A BROAD MEASURE OF A COUNTRY'S TRADE IN BOTH GOODS AND SERVICES THE CLINTON ADMINISTRATION AFTER EARLIER TRYING TO TALK UP THE VALUE OF THE YEN NOW ESCHEWS SUCH TACTICS BUT MR BERGSTEN SAID THE ADMINISTRATION'S PROPOSAL THAT JAPAN REDUCE ITS CURRENT ACCOUNT SURPLUS TO ABOUT 15 OF ITS GROSS DOMESTIC PRODUCT WOULD REQUIRE THE EXCHANGERATE RANGE HE FAVORS ANYWAY ALONG WITH THESE BROAD ECONOMIC MEASURES THE INSTITUTE STUDY URGES THE US AND JAPAN IN SIX MONTHS TO CONVENE WHAT IT CALLS STRUCTURAL CONVERGENCE TALKS WITH JAPAN THOSE TALKS WOULD TRY TO REDUCE THE DIFFERENCE IN THE TWO ECONOMIC SYSTEMS ARBITRARY AND MADDENING THE US COULD USE THOSE TALKS TO GET JAPAN TO STRENGTHEN ITS PRODUCT LIABILITY LAW SO JAPAN WOULDN'T RELY SO MUCH ON AN EXTENSIVE SYSTEM OF STANDARDS TESTING AND CERTIFICATION THAT US COMPANIES FIND ARBITRARY AND MADDENING IN ADDITION THE STUDY RECOMMENDS THAT THE COUNTRIES JOINTLY ENFORCE ANTITRUST MEASURES TO ELIMINATE THE STRANGLEHOLD LARGE JAPANESE MANUFACTURERS HAVE ON THE DISTRIBUTION SYSTEM THERE PATENT LAWS COULD ALSO BE CHANGED TO PROTECT US HIGHTECH COMPANIES TRYING TO SET UP IN JAPAN IN NEXT WEEK'S TALKS IN TOKYO CLINTON ADMINISTRATION NEGOTIATORS WILL TRY TO GET JAPAN TO AGREE ON AN OUTLINE FOR DISCUSSIONS THAT WOULD ADDRESS PROBLEMS FACED BY A VARIETY OF US FIRMS EXPORTING TO JAPAN THE BERGSTENNOLAND BOOK SAID THE US SHOULD DECIDE WHICH INDUSTRIES TO TARGET FOR HELP BY EVALUATING THE PAYOFF FROM POTENTIAL NEGOTIATIONS EITHER IN US EXPORTS OR IN THE LIBERALIZATION OF THE JAPANESE ECONOMY BY THAT CRITERIA THE US WOULD PUSH MUCH MORE HEAVILY TO OPEN THE JAPANESE MARKET FOR SMALLER COMPUTERS AND WOOD PRODUCTS WHERE THE EXPORT POTENTIAL IS HIGH INSTEAD OF SUPERCOMPUTERS WHERE THE POTENTIAL EXPORT VOLUME IS LOW OVERALL THE STUDY CALCULATES JAPANESE MARKET BARRIERS REDUCE US EXPORTS BY BETWEEN 9 BILLION AND 18 BILLION ANNUALLY 9306250106 930625 BUSINESS BRIEF HALLWOOD SOLD 89 OF ITS HOLDINGS IN SHOWBIZ PIZZA BEFORE NEW FORECAST DALLAS HALLWOOD GROUP INC THE LARGEST SHAREHOLDER IN SHOWBIZ PIZZA TIME INC SOLD 89 OF ITS HOLDINGS IN THE RESTAURANT CHAIN PRIOR TO THE COMPANY'S LOWERING OF ITS SECONDQUARTER EARNINGS PROJECTION THAT FORECAST PROMPTED A 35 DECLINE IN THE COMPANY'S STOCK PRICE ANTHONY J GUMBINER HALLWOOD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DIDN'T RETURN CALLS SEEKING COMMENT ABOUT THE STOCK SALES WHICH TOTALED 175000 SHARES MR GUMBINER ALONG WITH THREE OTHER HALLWOOD EXECUTIVES ARE MEMBERS OF SHOWBIZ PIZZA'S SEVENPERSON BOARD OF DIRECTORS IN A PREPARED STATEMENT THE INVESTMENT CONCERN SAID IT WAS SATISFIED THAT IN MAKING THESE SALES IT COMPLIED WITH ALL LEGAL REQUIREMENTS MICHAEL MAGUSIAK CHIEF FINANCIAL OFFICER OF SHOWBIZ PIZZA NOTED THAT SHOWBIZ EXECUTIVES HAD KNOWN AS EARLY AS JUNE 5 THAT WEAK SALES WOULD AFFECT EXPECTED PROFIT FOR THE SECOND QUARTER THE COMPANY DIDN'T DISCLOSE THAT INFORMATION PUBLICLY HOWEVER UNTIL JUNE 11 MR MAGUSIAK SAID IT TOOK SEVERAL DAYS TO DETERMINE THE NEW EARNINGS PROJECTION AND THEN TO PREPARE THE NEWS RELEASE ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION HALLWOOD SOLD ITS SHARES BETWEEN JUNE 2 AND JUNE 10 WHEN SHOWBIZ WAS AT BETWEEN 28875 AND 32375 IN NATIONAL OVERTHECOUNTER TRADING ON JUNE 11 WHEN SHOWBIZ ANNOUNCED THAT SECONDQUARTER EARNINGS WOULD BE ABOUT 18 CENTS TO 20 CENTS A SHARE INSTEAD OF THE 27 TO 28 CENTS A SHARE ANALYSTS EXPECTED SHOWBIZ SHARES CLOSED AT 1875 A SHARE DOWN 10125 THE STOCK WAS QUOTED YESTERDAY AT 1750 UP 375 CENTS MR MAGUSIAK WOULDN'T COMMENT ON WHETHER ANY OF THE DIRECTORS HAD BEEN PRIVY TO DISCUSSIONS OF EARNINGS OR REVISING THE PROJECTIONS BETWEEN JUNE 5 AND JUNE 11 THE SALE BY HALLWOOD WHICH WAS REPORTED IN THE DALLAS MORNING NEWS COMES IN THE WAKE OF SHAREHOLDER LAWSUITS ALLEGING THAT RICHARD M FRANK SHOWBIZ PIZZA'S CHAIRMAN AND CHIEF EXECUTIVE AND TWO OTHER SHOWBIZ EXECUTIVES HAD BENEFITED FROM INSIDE INFORMATION WHEN THEY SOLD A TOTAL OF 82000 SHARES IN LATE APRIL AND EARLY MAY MR MAGUSIAK SAID THE THREE EXECUTIVES SOLD SHARES FOR PERSONAL REASONS 9306250105 930625 PETFOOD MAKERS HIT DOGEATDOG WORLD IN EUROPEAN MARKET NEW PRODUCTS CROWD SHELVES BUT MORE MOUTHS TO FEED KEEP SALES RISING STEADILY BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS GOOD BOY FIDO PET FOOD SALES ARE RISING THROUGHOUT EUROPE WITH A GROWING PET POPULATION AND A CONTINUED TREND TOWARD READYMADE CONVENIENCE PRODUCTS PET FOOD SALES HAVE INCREASED AN AVERAGE 10 IN THE 10 COUNTRIES SURVEYED BY MARKET RESEARCH GROUP AC NIELSEN IN SOME PLACES THE GROWTH IN VICTUALS FOR THE FOURLEGGED SET WAS EVEN GREATER 22 IN ITALY 15 IN SPAIN AND ROUGHLY 25 IN FINLAND OVER AN 11MONTH PERIOD THROUGH MARCH THE SALES SURGE MAINLY IS DUE TO CHANGING LIFESTYLES IN MORETRADITIONAL PARTS OF EUROPE WORKING WOMEN PREPARE FEWER MEALS WHICH MEANS ANIMALS LOSE OUT ON THE LEFTOVERS THERE IS HARDLY ENOUGH IN THESE FROZEN MEALS TO FEED A HUMAN LET ALONE LEAVING SCRAPS FOR AN ANIMAL EXPLAINS MIKE DOBSON A MARKETING DIRECTOR AT THE BRUSSELS OFFICE OF CHICAGOBASED QUAKER OATS CO WHICH MAKES FELIX CAT FOOD AND BONZO AND FIDO FOR DOGS FRANCE AND BELGIUM ARE EUROPE'S MOST PETLOVING NATIONS DOGS DWELL IN 38 OF FRENCH HOUSEHOLDS AND 37 OF BELGIAN HOMES ACCORDING TO A GERMAN TRADE PUBLICATION BELGIUM IS EUROPE'S FELINE LEADER WITH 29 OF HOUSEHOLDS OWNING CATS COMPARED WITH 27 IN FRANCE EUROPEANS INCREASINGLY TREAT THEIR PETS AS FAMILY MEMBERS AND FOOD IS ONE OF THE LAST AREAS TO BE AFFECTED BY SMALLER INCOMES PEOPLE ARE EMOTIONALLY INVOLVED IN THE FOOD THEY BUY FOR PETS SAYS BARRIE BERG AN INDUSTRY ANALYST WITH BOOZ ALLEN & HAMILTON IN LONDON THAT MIGHT EXPLAIN THE GROWTH IN PREMIUM PRODUCTS SUCH AS EFFEM GMBH'S SHEBA AND CESAR NESTLE SA'S GOURMET OR NINE LIVES AND AWARD WHICH PITTSBURGHBASED HJ HEINZ CO RECENTLY LAUNCHED IN BRITAIN WHERE PET FOOD SALES AMOUNTED TO 15 BILLION LAST YEAR ON THE FAR END OF THE SEGMENT PEOPLE FEED A DOG ONLY WITH DRY MIX WHICH IS FINE FROM A NUTRITIONAL STANDPOINT AND A CHEAP WAY TO FEED A LARGE DOG EXPLAINS A MARKETING EXECUTIVE WITH SWISSBASED NESTLE AND THEN YOU HAVE AN OLD LADY IN WARSAW WHO CAN BARELY AFFORD TO FEED HERSELF BUT BUYS SHEBA FOR HER CAT AT THE LOWERPRICED END PRIVATELABEL COMPETITORS HAVE BEEN PARTICULARLY SUCCESSFUL WITH CANNED DOG FOOD EFFEM A DIVISION OF MCLEAN VABASED MARS INC AND EUROPE'S LEADING PET FOOD MAKER IS TRYING TO FIGHT BACK BY KEEPING PRICES STABLE OR LOWERING THEM FOR SOME PRODUCTS SUCH AS ITS 100GRAM PACKAGE OF PEDIGREE PAL DOG FOOD SNACKS ARE THE FASTESTGROWING SEGMENT OF PET FOOD QUAKER OATS IS WORKING ON A SEMIMOIST STICK THAT CAN BE FED WHOLE OR BROKEN INTO PIECES AS A SNACK BETWEEN MEALS THE NEW TREAT WHICH WILL BE MARKETED UNDER THE BRAND NAME PICNIC WILL FACE TOUGH COMPETITION BY SUCH DELICACIES AS CHEESE CRUNCHIES OR PEDIGREE SCHMACKOS FOR DOGS WITHIN THE NEXT TWO WEEKS ROYAL CANIN BENELUX SA IS PLANNING TO LAUNCH A HOT CEREAL FOR PETS GEARED TOWARD YOUNG HEALTHCONSCIOUS PET OWNERS ROYAL CANIN IS A UNIT OF ROYAL CANIN SA WHICH IS A UNIT OF GUYOMARCH SA GUYOMARCH IS OWNED BY FINANCIERE DE PARIBAS SA OF FRANCE WHISKAS CRUNCH FROM EFFEM SERVES AS TOPPING FOR CAT FOOD AND AN ALSATIAN BREWERY HAS LAUNCHED AN ALCOHOLFREE BEER FOR PETS PET FOOD PRODUCERS ALTERNATE BETWEEN LURING BUYERS WITH LUXURY AND ENTICING THEM WITH PROMISES OF GOOD HEALTH GENERALLY CAT OWNERS LIKE FRILLS FOR THEIR FINICKY PETS BUT DOG OWNERS LEAN TOWARD HEALTH FOOD A LEAFLET ATTACHED TO THE DOG FOOD SHELF IN A BELGIAN SUPERMARKET SHOWS CEREALS FISH CARROTS AND MEAT NEXT TO A PROMISE THAT FROLIC A DRY FOOD MADE BY EFFEM CONTAINS ALL NECESSARY MINERALS AND VITAMINS LAST YEAR EFFEM INTRODUCED WHISKAS CATMILK WITH A LOWER LACTOSE CONTENT THAT MAKES THE PRODUCT EASIER TO DIGEST THAN ORDINARY MILK BUT IT'S ALSO THREE TIMES AS EXPENSIVE ACCORDING TO MINTEL A LONDONBASED MARKET RESEARCH GROUP LAST YEAR THE COMPANY ALSO LAUNCHED KITEKAT FIT AND FINE WHICH ADDED CARROTS INDUSTRY LEADERS DISAGREE ON THE IMPORTANCE OF THE WELLNESS TREND DESPITE ITS FROLIC PROMOTION AND A NEW CHAPPI VARIETY WITH RICE EFFEM SPOKESMAN ROLF ZEPP SAYS WELLNESS PRODUCTS WILL REMAIN A NICHE MARKET HIS COLLEAGUE AT NESTLE SAYS NUTRITIONAL VALUE IS EXPECTED IN PET FOODS AND DOESN'T NEED TO BE PLAYED UP BUT SALES OF LOWPROTEIN NUTRITION FOR OLDER PETS CALCIUMENRICHED FOODS FOR KITTENS AND PUPPIES AND OTHER HEALTHORIENTED ANIMAL NUTRITION ARE GROWING AT DOUBLEDIGIT PERCENTAGES ACCORDING TO DAVID GRAVES MARKETING DIRECTOR FOR HILL'S PET NUTRITION LTD A DIVISION OF NEW YORKBASED COLGATEPALMOLIVE CO WHILE EFFEM HAS LONG DOMINATED THE LUCRATIVE BUSINESS WITH BREEDERS WHO BUY LARGE QUANTITIES OF PET FOOD HILL'S HAS BEEN THE LEADING RECOMMENDATION BY VETERINARIANS MEDICATED PET FOODS ARE THE HIGHESTMARGIN PRODUCTS IN THE BUSINESS SAYS INDUSTRY ANALYST MR CONNELL MR GRAVES AT HILL'S SAYS NOT ONLY DO VETS RECOGNIZE THE PRODUCTS' HIGH QUALITY BUT THERE'S ALSO A HIDDEN BENEFIT FOR THE URBAN PET OWNER DUE TO THE HIGHER DIGESTIBILITY THERE WILL BE LESS CLEANING TO DO 9306250104 930625 LOSING ALTITUDE ONCESOLID DELTA AIR IS BURDENED BY COST OF EUROPEAN FORAY PRIZED PAN AM ROUTES BRING DEBT AND A DOWNGRADE OF CREDIT BUT NO PROFIT SERVICE IS BEGINNING TO FRAY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE AIRLINE INDUSTRY'S SEVERE TROUBLES OVERCAPACITY FARE WARS BRUISING LOSSES HAVE CAUGHT UP TO DELTA AIR LINES THE CARRIER THAT FOR A HEADY MOMENT TWO YEARS AGO SEEMED TO BE KING OF THE HILL IN AUGUST 1991 DELTA DISPLAYED UNCHARACTERISTIC NIMBLENESS IN BEATING OUT SEVERAL RIVALS AND SNARING PAN AM CORP'S BIG EUROPEAN OPERATIONS DELTA THEN AS NOW NO 3 IN OVERALL TRAFFIC WAS SET TO LEAPFROG UAL CORP'S UNITED AIR LINES AND AMR CORP'S AMERICAN AIRLINES TO BECOME THE BIGGEST US TRANSATLANTIC CARRIER AT THE TIME DELTA'S AMINUS CREDIT RATING MADE IT THE ENVY OF THE OVERLEVERAGED MONEYLOSING AIRLINE INDUSTRY BUT NOW TWO YEARS LATER THE INDUSTRY'S PROBLEMS PLUS SOME UNIQUE TO DELTA HAVE REDUCED THE ATLANTABASED CARRIER TO THE SHAKIEST POSITION OF THE BIG THREE DELTA'S DEBT HAS EXPLODED TO 12 BILLION INCLUDING AIRLINER LEASES AND OTHER OFFBALANCESHEET ITEMS ANALYSTS SAY AND ITS STERLING CREDIT RATING HAS SLID TO THE JUNKBOND LEVELS OF THE REST OF THE INDUSTRY DELTA SAYS ITS DEBT IS MUCH LOWER BUT IT DECLINES TO GIVE A FIGURE THE CARRIER'S OPERATING LOSSES SINCE 1990 TOTAL 15 BILLION AND DELTA'S STOCK WHICH HAD BEEN HOVERING NEAR 73 A SHARE WHEN THE COMPANY BOUGHT THE PAN AM ASSETS CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 4825 UP 375 CENTS ON THE DAY SOME ANALYSTS FIND THE PICTURE SO GRIM THAT THEY DECLINE TO COMMENT ON IT PUBLICLY THEY'RE GETTING CLOSE TO THE DISTRESSED ZONE SAYS EDWARD ALTMAN A PROFESSOR AT NEW YORK UNIVERSITY'S STERN SCHOOL OF BUSINESS AS HE PLUGS DELTA'S NUMBERS INTO A MATHEMATICAL MODEL THAT MEASURES FINANCIAL DIFFICULTY SAYS RONALD W ALLEN DELTA'S CHAIRMAN AND CHIEF EXECUTIVE WE WILL DO EVERYTHING IN OUR POWER TO AVOID GETTING TO THAT POINT REFERRING TO COMPANYWIDE COSTCUTTING THAT HAS SLICED 700 MILLION FROM EXPENSES IN THE FISCAL YEAR ENDING NEXT WEEK HE ADDS IF WE WEREN'T SEEING RESULTS TODAY I'D BE VERY CONCERNED LIKE INVESTORS DELTA'S EMPLOYEES ARE HAVING PROBLEMS TOO AND ITS ONCETOPNOTCH SERVICE IS BEGINNING TO FRAY ON A RECENT SATURDAY FLIGHT TO ATLANTA FROM HOUSTON THE REAR GALLEY DOORS OF A DELTA MD88 FLEW OPENED ON TAKEOFF AND TRAYS AND CUTLERY CLATTERED TO THE FLOOR A FLIGHT ATTENDANT REMARKED TO PASSENGERS THROUGH A CLENCHEDTEETH SMILE THOSE DOORS NEVER STAY CLOSED ACCORDING TO DEPARTMENT OF TRANSPORTATION STATISTICS FOR APRIL THE LATEST AVAILABLE DELTA HAD 077 COMPLAINT PER 100000 PASSENGERS UP FROM 058 A YEAR EARLIER AS A RESULT DELTA WHICH UNTIL 1991 HAD THE LOWEST LEVEL OF PASSENGER COMPLAINTS HAS SLIPPED TO FOURTHBEST IT APPEARS THE HARDWON PAN AM PROPERTIES ARE LARGELY RESPONSIBLE FOR DELTA'S CURRENT DISTRESS DESPERATE TO MATCH COMPETITORS BY STRENGTHENING ITS FOOTHOLD OVERSEAS DELTA PAID DEARLY MORE THAN 500 MILLION IN CASH AND ASSUMED LIABILITIES TO ACQUIRE THE STRATEGIC PROPERTIES BUT BUSINESS TRAVEL TO EUROPE HAS STAYED WEAK ESPECIALLY INTO AND OUT OF FRANKFURT DELTA'S BIGGEST EUROPEAN HUB AND FRANKFURT'S COSTS ARE HIGH PREPARING A PLANE THERE FOR A FLIGHT COSTS MORE THAN 7000 FAR HIGHER THAN THE 1650 IN LONDON THE HUB USED BY MOST TRANSATLANTIC CARRIERS IN ADDITION DELTA QUICKLY DUMPED THE WELLKNOWN PAN AM NAME WHILE TRYING TO ATTRACT BUSINESS TRAVELERS EVEN THOUGH PAN AM'S EUROPEAN ROUTES HAD TRADITIONALLY CATERED TO VACATIONERS THE UPSHOT DELTA'S TRANSATLANTIC ROUTES LOST MORE THAN 500 MILLION IN THEIR FIRST FULL YEAR IN THE MARCH QUARTER DELTA'S TRANSATLANTIC ROUTES HAD AN OPERATING LOSS OF 2437 MILLION WHICH WORKS OUT TO 27 MILLION A DAY ALTHOUGH THE COMPANY NOTES THAT THAT NUMBER INCLUDES A WRITEOFF FOR FLIGHT EQUIPMENT IT IS SHEDDING THE AIRLINE WON'T DISCLOSE MORE RECENT NUMBERS BUT SAYS REVENUE IN THE CURRENT QUARTER HAS IMPROVED I DON'T KNOW IF THEY CAN AFFORD TO HOLD ON IN EUROPE SAYS JON ASH A CONSULTANT AT GLOBAL AVIATION ASSOCIATES IN WASHINGTON AND I DON'T KNOW IF THEY CAN AFFORD TO BAIL OUT DELTA'S FLIGHTS FROM ATLANTA TO NICE FRANCE AND CINCINNATI TO MUNICH FOR EXAMPLE ARE HALFEMPTY BUT IT IS RELUCTANT TO PULL OUT OF MARKETS IT HAS ENTERED AT ITS FRANKFURT HUB DELTA SAYS THAT ALTHOUGH IT FILLS FEWER TRANSATLANTIC SEATS THAN RIVALS DO ITS LOAD FACTORS ON FLIGHTS BEYOND FRANKFURT PRIMARILY TO EASTERN EUROPE ARE HIGH IN THE 80 RANGE WITH NO ECONOMIC UPTURN OR REGULATORY REMEDY IN SIGHT DELTA'S MAIN HOPE OF FLYING THROUGH THE FINANCIAL TURBULENCE HAS BEEN MORE BORROWING ON MAY 17 MOODY'S INVESTORS SERVICE JOINED STANDARD & POOR'S IN DOWNGRADING DELTA'S CREDIT RATING TO BELOW INVESTMENT GRADE THE DOWNGRADES TRIGGERED THE RIGHT OF HOLDERS OF A NOTE ISSUED TO FINANCE DELTA'S EMPLOYEE STOCK OWNERSHIP PROGRAM TO FORCE THE COMPANY TO BUY BACK THE NOTES AT A PREMIUM UNLESS DELTA CAN RAISE THE RATING ON THE NOTES BACK TO INVESTMENT GRADE BY MIDSEPTEMBER THE NOTEHOLDERS CAN FORCE IT TO SHELL OUT SOME 550 MILLION TO RAISE THE CREDIT RATING DELTA HAS NEGOTIATED A 700 MILLION LETTER OF CREDIT FROM ITS BANKS THAT HAS USED UP THE BULK OF ITS REMAINING BANK CREDIT AFTER GETTING THE LETTER OF CREDIT DELTA WILL HAVE PLENTY OF RUNNING ROOM TO LOOK AT OTHER OPTIONS SAYS THOMAS ROECK CHIEF FINANCIAL OFFICER AFTER TWO DEBT ISSUES THAT RAISED ALMOST 750 MILLION LAST WEEK MR ROECK SAYS DELTA WILL END ITS FISCAL YEAR ON JUNE 30 WITH MORE THAN 1 BILLION IN CASH A YEAR EARLIER IT HAD 504 MILLION HOWEVER IT STILL FACES A 12 BILLION NONCASH CHARGE FOR CHANGING ITS ACCOUNTING FOR POSTRETIREMENT BENEFITS MR ROECK SAYS THE COMPANY HASN'T DECIDED WHETHER TO TAKE IT IN THE JUNE OR SEPTEMBER QUARTER JAY LUSTIG MANAGING DIRECTOR OF DRAKE CAPITAL SECURITIES INC'S HIGHYIELDBOND DEPARTMENT SAYS READING DELTA'S FINANCIAL STATEMENTS THESE DAYS BRINGS TO MIND CERTAIN OTHER AIRLINES BROUGHT DOWN BY HEAVY DEBT IF I DIDN'T KNOW BETTER I'D SWEAR DELTA'S EXECUTIVES WERE TRYING TO EARN A DEGREE IN THE FRANK LORENZO SCHOOL OF MANAGEMENT MR LUSTIG COMMENTS UNTIL 1990 MR LORENZO CONTROLLED EASTERN AND CONTINENTAL AIRLINES BOTH OF WHICH FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS CONTINENTAL EMERGED IN APRIL BUT EASTERN FOLDED JAMES L BROADHEAD THE CHIEF EXECUTIVE OF FPL GROUP INC A JUNO BEACH FLA ELECTRIC UTILITY AND A DELTA DIRECTOR FOR TWO YEARS SAYS HE DOESN'T EXPECT DELTA TO ENTER CHAPTER 11 NOT UNLESS EVERYBODY IN THE INDUSTRY IS GOING INTO BANKRUPTCY HE ADDS THAT THE DIRECTORS VIEW THE PAN AM ACQUISITION AS AN ESSENTIAL MOVE DELTA CHAIRMAN ALLEN KNEW THAT THE PAN AM ASSETS WERE IN BAD SHAPE BECAUSE OF PAN AM'S OWN FINANCIAL DIFFICULTIES THAT CARRIER CLOSED DOWN IN DECEMBER 1991 BUT HE NOW ADMITS THAT HE MAY HAVE MISJUDGED THE DEPTH OF PAN AM'S OPERATIONAL PROBLEMS DELTA GOT DECREPIT PLANES AND FILTHY RUNDOWN FACILITIES THE ROOF LEAKED IN THE PAN AM TERMINAL AT NEW YORK'S JOHN F KENNEDY INTERNATIONAL AIRPORT AND THE BATHROOMS WERE ABOMINABLE DELTA HAS MADE REPAIRS THERE AND NOW IS STUDYING WHAT KINDS OF SHOPS TO PUT IN MR ALLEN SAYS HE STILL WOULD BUY THE PAN AM ASSETS TODAY ALTHOUGH IF HE COULD HE WOULD PICK A BETTER TIME TO DO SO BUT I FEEL BETTER TODAY WITH THOSE ASSETS THAN WITHOUT THEM AT JFK PAN AM HAD MORE PLANES THAN GATES AT PEAK PERIODS AND ITS JETWAYS COULD ACCOMMODATE ONLY SMALLER PLANES PASSENGERS HAVE TO BE BUSED TO REMOTE AREAS OF THE TARMAC AND THEN CLIMB STAIRS TO BOARD THE PLANES DELTA IS INSTALLING 17 NEW JETWAYS AT 220000 APIECE IT TOOK DELTA HUNDREDS OF THOUSANDS OF DOLLARS TO OVERHAUL THE 38 PAN AM PLANES IT ACQUIRED BUT A TRIP LAST WEEK ON ONE A310200 SHOWED THEY ARE STILL BELOW DELTA'S USUAL HIGH STANDARDS THE COVERS DIDN'T FIT OVER MANY OF THE SEAT CUSHIONS AND THE SEATBACK POCKETS ON SEVERAL ROWS WERE TORN A PASSENGER HEADED TO THE LAVATORY WAS WARNED OFF BY A FLIGHT ATTENDANT DON'T USE THE ONE ON THE LEFT IT STINKS DELTA TOOK AN 825 MILLION WRITEDOWN ON SOME PAN AM EQUIPMENT AND IS RETURNING THE PLANES TO LESSORS AFTER THIS SUMMER DELTA QUICKLY LEARNED THAT ITS REPUTATION AS AN INTERNATIONAL AIRLINE IS RATHER SLIGHT IN PAN AM'S OLD NEW YORK STRONGHOLD WE CALLED ON TRAVEL AGENTS IN NEW YORK WHO'D NEVER BOOKED DELTA AIR LINES BEFORE SAYS STEVE SMITH MARKETING DIRECTOR FOR THE NEW YORK CITY REGION ALTHOUGH DELTA HAS ELIMINATED MANY OF THE VOLUME DISCOUNTS PAN AM HAD USED TO STAY ALOFT DELTA HAS NEVERTHELESS BECOME THE LEADER IN CUTRATE TICKETS TO EUROPE IT HAS TWICE EXTENDED ITS DISCOUNT FARES LUFTHANSA HAS RESPONDED BY DEEPENING ITS TRANSATLANTIC DISCOUNTS IN ADDITION US TRAVEL AGENTS NOW RECEIVE 18 COMMISSIONS FOR BOOKING DELTA'S INTERNATIONAL FLIGHTS NEARLY TWICE THE USUAL RATE IN NEW YORK DELTA IS RUNNING ITS FIRST 52WEEK AD CAMPAIGN IN ANY MARKET AS A RESULT OF SUCH PROGRAMS MR SMITH SAYS ITS JFK BOARDINGS IN APRIL THE LATEST MONTH FOR THE FIGURES ROSE 13 FROM A YEAR EARLIER TO 44000 ON THE OTHER SIDE OF THE ATLANTIC DELTA HAS REWRITTEN SOME OF ITS OWN RULES HOPING TO BOLSTER ITS ANEMIC EUROPEAN BUSINESS EARLIER THIS YEAR IT TOOK THE UNUSUAL STEP OF APPOINTING AN OUTSIDER MICHAEL D MEDLICOTT TO LEAD ITS EUROPEAN DIVISION A BRITISHER WHO HAD HEADED THE BRITISH TOURIST AUTHORITY BUT NEVER WORKED FOR AN AIRLINE MR MEDLICOTT WILL BE RESPONSIBLE FOR MARKETING DECISIONS PREVIOUSLY MADE IN ATLANTA IT MAY BE A COUPLE OF MONTHS BEFORE WE REALLY OPEN FIRE BUT IT WON'T BE LONGER THAN THAT HE SAYS BACK IN THE US DELTA IS TRYING TO KEEP ITS DOMESTIC BUSINESS IN THE BLACK IT TRIED TO LURE CUSTOMERS AWAY FROM AMERICAN AIRLINES AT DALLAS/FORT WORTH AIRPORT BY OFFERING LOCAL RESIDENTS SPECIAL FREQUENTFLYER BENEFITS AND GIVING TRAVEL AGENTS A 5 BONUS FOR RESERVATIONS TO CERTAIN BUSINESS DESTINATIONS AMERICAN PROMPTLY RESPONDED WITH 6 BONUSES TO THE SAME CITIES AND ADDED ATLANTA SALT LAKE CITY CINCINNATI AND ORLANDO FLA ALL DELTA HUBS THE PROGRAM DID HAVE SOME FAVORABLE RESPONSE FROM SOME CLIENTS BUT HERE IN DALLAS A LOT OF PEOPLE ARE MARRIED TO THE AADVANTAGE PROGRAM SAYS JAMES M STRONG AN AGENT AT JS TRAVEL SERVICES INC REFERRING TO AMERICAN'S FREQUENTFLYER CLUB IN FACT DELTA HASN'T GAINED MARKET SHARE AS OF APRIL IT HAD 287 OF DALLASFORT WORTH TRAFFIC DOWN FROM 29 LAST SEPTEMBER WHEN IT BEGAN ITS CAMPAIGN WHILE AMERICAN'S EASED TO 596 FROM 602 AMERICAN HAS ADDED MORE THAN 50 FLIGHTS AT DALLAS AND DELTA HAS CEDED SOME TO ITS COMMUTERAIRLINE PARTNER ATLANTIC SOUTHEAST AIRLINES IN ATLANTA DELTA HAS HAD NEARLY A MONOPOLY SINCE EASTERN COLLAPSED IN EARLY 1991 AND DELTA RECENTLY ADDED 35 DAILY FLIGHTS THERE FOR A TOTAL OF 517 BUT MORE COMPETITION IS BREWING THERE TRANS WORLD AIRLINES OPERATES A NEW MINIHUB IN ATLANTA AND THREE INVESTORS HAVE HIRED LEWIS JORDAN A FORMER CONTINENTAL EXECUTIVE TO FORM A LOWCOST CARRIER THAT THEY EXPECT TO FLY OUT OF ATLANTA THIS FALL SUCH INTERLOPERS ARE ONE REASON MR ALLEN IS TRYING TO REIN IN DELTA'S HIGH COSTS THE 52YEAROLD EXECUTIVE A FORMER PERSONNEL CHIEF AT THE CARRIER WHO HAS ELIMINATED 4000 TO 5000 DELTA WORKERS SAYS HE WOULD LIKE TO REDUCE THE PAYROLL BY AS MANY AS 5000 MORE TO ROUGHLY 72000 THE NUMBER DELTA HAD BEFORE THE PAN AM DEAL ALL DELTA WORKERS EXCEPT THE PILOTS HAVE TAKEN 5 PAY CUTS AND GIVEN UP SOME BENEFITS AND VACATION TIME MR ALLEN GAVE BACK A 100000 RAISE HE GOT LAST YEAR AND DIRECTORS TOOK 20 CUTS IN THEIR BOARD FEES YET DELTA EMPLOYEES REMAIN THE HIGHESTPAID IN THE INDUSTRY ALTHOUGH EARLIER THIS YEAR THE COMPANY WAS AGAIN NAMED ONE OF THE 10 BEST PLACES TO WORK IN A BOOK RATING 100 US COMPANIES EMPLOYEES SAY THEY ARE BEGINNING TO FEEL THE SQUEEZE FLIGHT ATTENDANTS COMPLAIN THAT DELTA HAS STEPPED UP ENFORCEMENT OF ITS DRESS CODE AND SOME SAY THEY HAVE BEEN FORMALLY WARNED ABOUT EARRINGS THAT DANGLE OR ARE LARGER THAN A DIME TEMPORARY WORKERS IN DALLAS/FORT WORTH SAY DELTA KEPT THEM HANGING FOR MONTHS BEFORE TELLING THEM THEY WERE FIRED AND THEN DISCOURAGED THEM FROM FILING FOR UNEMPLOYMENT BENEFITS A DELTA SPOKESMAN SAYS IT IS ABSOLUTELY UNTRUE THAT THE COMPANY DISCOURAGED SUCH FILINGS FOR PAN AM WORKERS HIRED BY DELTA AFTER THE 1991 MERGER HOWEVER DELTA WAS A WELCOME CHANGE BELIEVE ME THIS IS THE BEST SAYS SEYMOUR WRIGHT A RAMP WORKER YOU CAN SPEAK TO MANAGEMENT HERE WITH LITTLE DIFFICULTY AT PAN AM YOU HAD TO HAVE AN APPOINTMENT AND HE SAYS THAT WASN'T EASY ADDS RONNIE SCHMIDT ANOTHER RAMP WORKER THE FIRST THING I GOT AFTER THE MERGER WAS RON ALLEN'S HOME TELEPHONE NUMBER IT IS IN DELTA'S INTERNAL PHONE DIRECTORY LABORMANAGEMENT HARMONY ISN'T UNIVERSAL AT DELTA HOWEVER MR ALLEN HAS FAILED TO EXTRACT THE CONCESSIONS HE WANTS FROM PILOTS SOMETHING ON A PAR WITH THOSE FROM OTHER EMPLOYEES THE PILOTS STALLED FOR SEVERAL MONTHS OFFERED A ONETIME 65 MILLION AGREEMENT AND THEN RAISED IT TO A 90 MILLION ONEYEAR WAGE CUT THAT EXEMPTED THOSE WITH LESS THAN THREE YEARS OF SENIORITY DELTA SAID IT WASN'T ENOUGH AND THE SIDES HAVEN'T NEGOTIATED SINCE THEN OLDER PILOTS REMEMBER THAT IN THE EARLY 1970S WHEN DELTA LAST HAD FINANCIAL PROBLEMS IT TOOK SEVERAL HUNDRED PILOTS OUT OF THE COCKPIT BUT GAVE THEM TEMPORARY JOBS AS RESERVATION CLERKS THEY VIEW THE FURLOUGHS OF 600 PILOTS IN MARCH AS PUNITIVE LAURA JERESKI CONTRIBUTED TO THIS ARTICLE 9306250103 930625 PEPPERAND SALT NEWS ITEM 48 CENTS OUT OF EVERY AMERICAN TAX DOLLAR NOW GOES TO PAY TAXES THE AVERAGE TAXPAYER NOW HAS TO WORK THROUGH JUNE 24 EACH YEAR TO PAY FOR LOCAL STATE AND FEDERAL GOVERNMENT COMPUTER NETWORKING GETTING ONE'S HACKS TOGETHER 9306250102 930625 SMITH BARNEY SHEARSON TAPS GREENHILL SHOWING INTEREST IN INVESTMENT BANKING BY MICHAEL SICONOLFI AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SMITH BARNEY SHEARSON INC NAMED ROBERT F GREENHILL AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SIGNALING A PLUNGE INTO INVESTMENT BANKING BY THE NEWLY CREATED BROKERAGE GIANT THE 56YEAROLD MR GREENHILL DETHRONED IN MARCH AS PRESIDENT OF MORGAN STANLEY GROUP INC IS ONE OF WALL STREET'S BESTKNOWN INVESTMENT BANKERS MR GREENHILL WITH HIS SIGNATURE SUSPENDERS WILL SEEK TO BOLSTER THE PRIMERICA CORP UNIT'S MEAGER PRESENCE IN INVESTMENT BANKING AND CHALLENGE MERRILL LYNCH & CO THE US'S LARGEST BROKERAGE FIRM AND AN INVESTMENTBANKING POWERHOUSE MR GREENHILL'S SURPRISE APPOINTMENT REVERSES A STRATEGY SPELLED OUT ONLY MONTHS AGO IN MARCH PRIMERICA CORP CHAIRMAN SANFORD WEILL ONLY WANTED TO BUY THE BROKERAGE OPERATIONS OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT AND DIDN'T GO AFTER ITS INVESTMENTBANKING DIVISION COLLEAGUES SAY HE HAS NEVER FELT COMFORTABLE WITH INVESTMENT BANKERS AT SMITH BARNEY MR WEILL FOCUSED ON BEEFING UP THE FIRM'S BROKERAGE EFFORTS IN ATTRACTING WEALTHY INDIVIDUALS RATHER THAN TRYING TO TURN THE FIRM INTO A MAJOR INVESTMENT BANK MORE BROADLY THE MOVE IS A BOLD BID BY MR WEILL TO CREATE A FINANCIAL SERVICES JUGGERNAUT SINCE DEPARTING AS PRESIDENT OF AMERICAN EXPRESS IN 1985 MR WEILL HAS QUIETLY PINED FOR THE DAY WHEN HE COULD COBBLE TOGETHER A FIRM THAT WOULD RIVAL MERRILL AND OTHER FINANCIAL SUPERMARKETS CURRENT AND FORMER COLLEAGUES SAY PRIMERICA'S STOCK RALLIED 77 CLOSING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 4925 UP 350 SMITH BARNEY SHEARSON FOR ITS PART NEEDS INVESTMENTBANKING EXPERTISE BECAUSE IT IS LOOKING TO BE BOTH A GIANT INVESTMENT BANKING AND BROKERAGE FIRM MR WEILL SAID IT'S HARD TO BE TERRIFIC IN ONE PART AND NOT IN OTHER PARTS MR WEILL'S NAMING OF MR GREENHILL IS IN LINE WITH HIS HABIT OF HIRING CLOSE ASSOCIATES AND FRIENDS WHOSE CAREERS STARTED STRONGLY BUT LATER FALTERED HE HAS WORKED CLOSELY WITH MR GREENHILL FOR ABOUT 20 YEARS MR GREENHILL HAS BEEN PRIMERICA'S INVESTMENT BANKER AND ADVISED MR WEILL ON HIS PURCHASE OF PRIMERICA IN 1988 THE MOVE WILL ALLOW MR WEILL TO SPEND MOST OF HIS TIME EFFECTIVELY RUNNING SMITH BARNEY SHEARSON'S BROKERAGE OPERATIONSA POSITION HE RELISHES COLLEAGUES SAY ONE OF MR WEILL'S FIRST JOBS IN THE SECURITIES BUSINESS WAS AS A BROKER AND HIS FORCEFUL BLUNT STYLE HAS MESHED WELL WITH BROKERS OVER THE YEARS MR GREENHILL UNSEATS FRANK G ZARB WHO JUST THREE MONTHS AGO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE NEWLY CREATED BROKERAGE COLOSSUS IN MARCH PRIMERICA'S SMITH BARNEY HARRIS UPHAM & CO UNIT BOUGHT THE SHEARSON BROKERAGE OPERATIONS FROM AMERICAN EXPRESS FOR 115 BILLION THE DEAL WHICH CREATED THE US'S SECONDLARGEST BROKERAGE FIRM IS EXPECTED TO CLOSE NEXT MONTH MR ZARB ALONG WITH ROBERT I LIPP CHAIRMAN AND CHIEF EXECUTIVE OF PRIMERICA'S COMMERCIAL CREDIT CO UNIT WERE NAMED GROUP CHIEF EXECUTIVES AND WILL ASSUME EXPANDED MANAGEMENT DUTIES AT PARENT PRIMERICA AMONG OTHER THINGS MR ZARB WILL MANAGE PRIMERICA'S ASSET MANAGEMENT AND FINANCIALSERVICES SUBSIDIARIES IN AN INTERVIEW MR ZARB SAID HE WAS AN ARCHITECT OF THE MOVE AND SAID HE WAS READY FOR SOMETHING ELSE BOLSTERING SMITH BARNEY SHEARSON'S INVESTMENTBANKING UNIT ESSENTIALLY WILL GIVE THE FIRM'S 10500 BROKERS PRODUCTS TO SELL MEANTIME AS PART OF THE MERGER SMITH BARNEY SHEARSON HAS AGREED TO SELL LEHMAN BROTHERS INVESTMENT BANKING PRODUCTS FOR AS MANY AS TWO YEARS THIS SENDS A CLEAR MESSAGE THAT THEY'RE VERY COMMITTED TO THE INVESTMENTBANKING MARKET SAID GARY GOLDSTEIN PRESIDENT OF THE WHITNEY GROUP A NEW YORK EXECUTIVE SEARCH FIRM BUT THE MOVE TO BROADEN FROM A BROKERAGE GIANT INTO A DIVERSIFIED INVESTMENTBANKING FIRM CATERING TO BOTH INDIVIDUAL AND INSTITUTIONAL INVESTORS COULD BACKFIRE SOME ANALYSTS SAY THE ONLY FIRM ABLE TO PULL IT OFF IS MERRILL INDEED SHEARSON LEHMAN IS THE LATEST EXAMPLE OF A FIRM FAILING TO BECOME A JUMBO SECURITIES SUPERMARKET AND AFTER TWO YEARS OF RECORD PROFITS SECURITIES FIRMS WILL FIND IT DIFFICULT TO SUSTAIN THEIR FORTUNES IN THE NEXT FEW YEARS ANALYSTS SAY I HOPE MR WEILL IS NOT MAKING THE MISTAKE OF CONFUSING THE STRENGTH IN THE CYCLE WITH THE STRENGTH IN THE UNDERLYING BUSINESS SAID ONE ANALYST WHO REQUESTED ANONYMITY PRIMERICA IS LIKELY TO DISMISS AS MANY AS 1500 EMPLOYEES OF SMITH BARNEY SHEARSON BEFORE YEAR END PEOPLE FAMILIAR WITH THE MATTER SAY BUT THE NEWLY FORMED FIRM ALSO WILL BE BEEFING UP ITS CORPORATE FINANCE AREA AN EFFORT THAT IS LIKELY TO ACCELERATE IN THE WAKE OF MR GREENHILL'S APPOINTMENT FOR MR GREENHILL THE MOVE IS A CHANCE TO BUILD AN INVESTMENT BANKING DIVISION IN MUCH THE SAME WAY HE LAUNCHED MORGAN STANLEY'S MERGERS DEPARTMENT IN THE 1970S MR GREENHILL HAD BEEN EXPECTED TO LEAVE MORGAN STANLEY SINCE MARCH WHEN HE WAS PRESSURED TO STEP ASIDE AS PRESIDENT BY EXECUTIVES WITHIN THE FIRM WHO GROUSED THAT HE SPENT TOO LITTLE TIME AT HIS DUTIES SINCE THEN MR GREENHILL HAS BEEN SENIOR ADVISER TO MORGAN ON INVESTMENT BANKING MATTERS AMONG OTHER THINGS HE WAS MORGAN'S LEAD BANKER ON RJR NABISCO HOLDINGS INC'S 17 BILLION NABISCO STOCK OFFERING WHICH WAS CANCELED WEDNESDAY MR GREENHILL HAS BEEN GIVEN A SEVENYEAR EMPLOYMENT CONTRACT AND WILL COME ON BOARD IN JULY SAID MR WEILL HIS COMPENSATION PACKAGE WASN'T DISCLOSED BUT MR WEILL SAID IT WILL RELATE TO THE PERFORMANCE OF SMITH BARNEY SHEARSON MOREOVER BECAUSE MOST OF HIS COMPENSATION WILL BE BASED ON HIS PERFORMANCE AT THE COMPANY I HOPE IT WILL BE AN INCREASE OVER HIS MORGAN STANLEY COMPENSATION FOR THE YEAR ENDED JAN 31 MR GREENHILL WHO RESIGNED FROM HIS EMPLOYER OF 31 YEARS TUESDAY EARNED 63 MILLION IN SALARY CASH BONUS AND RESTRICTED MORGAN STANLEY STOCK SOME ANALYSTS SUGGESTED THAT MR GREENHILL'S INVESTMENTBANKING CLIENTS COULD FOLLOW HIM TO SMITH BARNEY SHEARSON SAID MR WEILL IT'S A FREE COUNTRY CLIENTS WILL DO BUSINESS WITH WHOM CLIENTS WANT TO DO BUSINESS MR GREENHILL SPORTING MUSTARDYELLOW SUSPENDERS SAID THIS OPPORTUNITY CAME ALONG SUCH AN EXCITING ENTREPRENEURIAL CHALLENGE TO BUILD THE FIRM OF TOMORROW HE ADDED THAT HE'S UNCONCERNED ABOUT COMPETITION WITH MERRILL ALL COMPETITORS ARE DIFFICULT I NEVER WORRY ABOUT ANY PARTICULAR ONES IN A PRIVATE PURCHASE MR GREENHILL BOUGHT 750000 PRIMERICA SHARES FROM THE COMPANY WEDNESDAY EVENING AT 46 EACH PAYING CASH HE SAID THE ANNOUNCEMENT SHOULD HELP DAMP CONCERNS THAT PRIMERICA LACKED THE MANAGEMENT DEPTH TO MANAGE SHEARSON AND ITS 27 OWNERSHIP OF TRAVELERS CORP THE HARTFORD CONN INSURER LAST WEEK STANDARD & POOR'S CORP IN AFFIRMING PRIMERICA'S SINGLEA CREDIT RATING SAID THE OUTLOOK FOR PRIMERICA WAS NEGATIVE GIVEN THE QUESTIONS ABOUT THE COMPANY'S BENCH STRENGTH DESPITE MANAGEMENT'S IMPRESSIVE HISTORY S&P BELIEVES THE SHEARSON ACQUISITION FOLLOWING SO QUICKLY BEHIND THE TRAVELERS INVESTMENT COULD POTENTIALLY DIFFUSE MANAGEMENT'S ATTENTION WROTE S&P ANALYST KARLA NEWMAN MS NEWMAN SAID IN AN INTERVIEW THAT WHILE YESTERDAY'S CHANGES EASE HER CONCERNS ABOUT MANAGEMENT SHE HAS NO PLANS TO ALTER HER NEGATIVE OUTLOOK FOR THE COMPANY THE CHANGES WILL GIVE MR ZARB AND MR LIPP MORE TIME TO DEVOTE TO TRAVELERS MR ZARB ALREADY A TRAVELERS' BOARD MEMBER WILL JOIN A TRAVELERS OPERATING COMMITTEE SET UP LAST YEAR AT THE TIME OF THE PRIMERICA INVESTMENT THE ADDITION OF MR ZARB GIVES PRIMERICA OFFICIALS A MAJORITY ON THE COMMITTEE GIVING IT FIVE MEMBERS TO FOUR FOR TRAVELERS AS FOR MR LIPP HE HAS BEEN PRIMERICA'S POINT MAN AT TRAVELERS FOR SEVERAL MONTHS BUT YESTERDAY'S ANNOUNCEMENT WAS THE FIRST OFFICIAL ACKNOWLEDGEMENT OF HIS ROLE THIS REPRESENTS WHAT WE'VE BEEN DOING FOR QUITE SOME TIME MR LIPP SAID A PRIMERICA SPOKESMAN ADDED THAT MR LIPP BY FREEING HIMSELF FROM THE DAYTODAY DUTIES AT COMMERCIAL CREDIT WILL BE ABLE TO SPEND MORE TIME ON TRAVELERS GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9306250101 930625 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JUNE 18 ACCOUNTED FOR 229 OR AN AVERAGE 574 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE JUNE 18 QUARTERLY EXPIRATION OF STOCKINDEX FUTURES AND OPTIONS BROKERAGE FIRMS EXECUTED AN ADDITIONAL 109 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 502 INVOLVED STOCKINDEX ARBITRAGE UP FROM 463 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 479 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 373 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 148 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES AND NOMURA SECURITIES EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS FIRST BOSTON SPLIT ITS ACTIVITY BETWEEN ITS OWN ACCOUNT AND ITS CUSTOMERS 9306250100 930625 WHO'S NEWS EMULEX'S BOB COREY IS SECOND SENIOR AIDE TO RESIGN RECENTLY COSTA MESA CALIF EMULEX CORP SAID BOB L COREY RESIGNED AS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE IN MIDJULY MR COREY 42 YEARS OLD IS THE SECOND SENIOR EXECUTIVE TO RESIGN FROM THE COMPUTERPRODUCTS CONCERN IN RECENT MONTHS ROBERT N STEPHENS RESIGNED AS EMULEX'S CHIEF EXECUTIVE OFFICER PRESIDENT AND A DIRECTOR IN MARCH BOTH RESIGNATIONS CAME DURING A REORGANIZATION AS EMULEX PREPARES TO SPIN OFF ITS MICRO DEVICES DIVISION INTO A SEPARATE PUBLICLY HELD COMPANY UNDER A PLAN ANNOUNCED LAST YEAR PAUL FOLINO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF EMULEX'S NETWORK SYSTEMS DIVISION SAID MR COREY BELIEVES THAT HIS POSTSPIN ROLE WILL BE SIGNIFICANTLY REDUCED AND WANTS TO PURSUE OUTSIDE OPPORTUNITES MR COREY SAID IN AN INTERVIEW THAT HE IS LEAVING EMULEX TO JOIN MTI A PRIVATE ANAHEIM CALIF COMPUTER SYSTEMS FIRM WITH MORE THAN 100 MILLION IN REVENUE IF I STAYED AT EMULEX I'D BE WORKING IN A 50 MILLION COMPANY HE SAID IN ITS THIRD QUARTER ENDED MARCH 28 EMULEX HAD A NET LOSS OF 145 MILLION OR 13 CENTS A SHARE ON SALES OF 26 MILLION EMULEX SAID THOMAS R ANDERSON 49 WILL SUCCEED MR COREY AS ACTING CHIEF FINANCIAL OFFICER UNTIL THE SPINOFF OCCURS LATE THIS YEAR MR ANDERSON WAS ALSO NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE MICRO DEVICES DIVISION HE IS CURRENTLY EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER OF HIARC INC A PRIVATE SOFTWARE COMPANY IN IRVINE CALIF 9306250099 930625 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN DEFYING CHINA'S BAN ON PUBLIC DEMONSTRATIONS SEVERAL HUNDRED PEOPLE DEMANDED THE RETURN OF MONEY THEY INVESTED IN AN ALLEGEDLY FRAUDULENT BOND ISSUE THE BEIJING PROTEST OUTSIDE GREAT WALL MACHINERY & ELECTRONICS SCIENTIFIC & TECHNOLOGICAL INDUSTRY CO FOLLOWED THE ARREST OF ITS GENERAL MANAGER ON EMBEZZLEMENT CHARGES THE PRIVATE COMP WHICH MAKES MOTORS ISSUED ABOUT 174 MILLION OF BONDS WITHOUT CENTRAL BANK APPROVAL TO MORE THAN 100000 INVESTORS LURED BY THE PROMISE OF 24 INTEREST CRITICS ALLEGED THAT THE ARREST WAS REALLY AN EFFORT BY THE GOVERNMENT TO REGAIN CONTROL OVER STOCKS AND BONDS AND TO CHANNEL SAVINGS BACK TO BANKS AND TREASURY BONDS THE GOVERNMENT IS WORRIED THAT UNHINDERED INVESTING WILL ACCELERATE ALREADY HIGH INFLATION THE GREAT WALL OFFICIAL WHO PREVIOUSLY FILED SUIT CHALLENGING CENTRAL BANK CURBS ON CORPORATE FUND RAISING IS ACCUSED OF SQUANDERING BOND PROCEEDS ON HIGH LIVING AND BUYING HOTELS AND OFFICES UNRELATED TO THE COMPANY'S BUSINESS ONE PROTESTER SAID HIS FAMILY HAD INVESTED THREE GENERATIONS' SAVINGS OF 5200 CHINESE FAMILY EARNINGS AVERAGE 420 A YEAR DENMARK'S PARLIAMENT REDUCED INCOME TAX RATES WHICH WERE AMONG THE WORLD'S HIGHEST BUT BALANCED THE CUTS WITH OVERALL TAX INCREASES AND IMPOSED NEW LEVIES ON DRINKING WATER ELECTRICITY AND GASOLINE THE HIGHEST MARGINAL INCOME TAX RATE WAS SLASHED TO 58 FROM 68 AND THE LOWEST TO 38 FROM 52 THE GOVERNMENT HAD PUSHED TAX REFORM TO BOOST THE ECONOMY AND CREATE 40000 JOBS FROM 199497 OPPONENTS SAID THE NEW TAXES WOULD HURT BUSINESSES THE PROGRAM CALLS FOR 3 BILLION KRONER 4632 MILLION IN NEW SPENDING ON RAILROADS HIGHWAYS AND POWER PLANTS MALAYSIA BEGAN BUILDING THE MENARA TOWER A BROADCASTING AND TELECOMMUNICATIONS STRUCTURE IN KUALA LUMPUR INTENDED TO EXPEDITE THE CAPITAL'S AIM TO BE THE REGION'S COMMUNICATIONS CENTER THE TOWER TO COST MORE THAN 100 MILLION WILL ACCOMMODATE NEW TECHNOLOGIES INCLUDING NAVIGATIONAL COMMUNICATIONS AT 1389 FEET OFFICIALS SAID MENARA WOULD BE THE WORLD'S THIRDTALLEST COMMUNICATIONS TOWER AFTER THE CN TOWER IN TORONTO AT 1825 FEET AND THE MOSCOW TOWER IN RUSSIA AT 1772 FEET BRITAIN'S OFFICE OF FAIR TRADING STARTED AN INFORMAL INQUIRY INTO WHETHER TOUR OPERATORS' LINKS WITH TRAVEL AGENTS UNFAIRLY RESTRICT CUSTOMER CHOICES THE AGENCY WANTS TO LEARN WHETHER OPERATORS THAT OWN TRAVELAGENCY CHAINS USE THE RELATIONSHIP TO INFLUENCE TRAVELERS' DECISIONS AND SQUEEZE OUT OTHER FIRMS FOLLOWING AN INDUSTRY SHAKEOUT IN THE LATE 1980S THREE COMPANIES NOW CONTROL MORE THAN HALF OF BRITAIN'S TOUROPERATOR BUSINESS SOME JAPANESE COMPANIES HAVE SET UP PROGRAMS ALLOWING THEIR EMPLOYEES SPECIAL LEAVE TO PARTICIPATE IN VOLUNTEER ACTIVITIES FOR AS LONG AS TWO YEARS A LABOR MINISTRY SURVEY FOUND FOR EXAMPLE ONE COMPANY GRANTED PAID LEAVE TO ITS WORKERS WHO JOINED TEAMS PROVIDING TECHNICAL ASSISTANCE TO DEVELOPING COUNTRIES THROUGH THE JAPAN INTERNATIONAL COOPERATION AGENCY OTHER COMPANIES ALLOW VOLUNTEERISM DURING WORKING HOURS MANY OF THE FIRMS PAY SOME COSTS OF VOLUNTEER ACTIVITIES AND LET THEIR WORKERS USE COMPANY EQUIPMENT AND SITES SOME GIVE VOLUNTEERISM CREDIT TO BOOST PERFORMANCE EVALUATIONS THE RUSSIAN FREETRADE ZONE OF KALININGRAD SUSPENDED A FEDERAL LAW ON CUSTOMS TARIFFS SAYING IT REMOVES THE REGION'S SPECIAL TAXFREE STATUS KALININGRAD OFFICIALS SAID THE LAW WOULD BANKRUPT MANY COMPANIES AND BLOCK RUSSIAN PRESIDENT BORIS YELTSIN'S STRATEGY TO DEVELOP THE BALTIC SEA PORT AREA KALININGRAD ONCE THE CORONATION CITY OF PRUSSIAN KINGS BECAME PART OF THE NOWDEFUNCT SOVIET UNION IN 1945 AND WAS LONG CLOSED TO VISITORS TO PROTECT MILITARY SECRETS RUSSIA IS DETERMINED TO RETAIN JURISDICTION OVER THE REGION AND KALININGRAD'S ICEFREE PORT BRAZILIAN LEGISLATORS ENGAGED IN A TUG OF WAR OVER THE COUNTRY'S RUNAWAY INFLATION THE CHAMBER OF DEPUTIES VOTED TO GIVE WORKERS AND PENSIONERS MONTHLY COSTOFLIVING RAISES WHICH THE FINANCE MINISTRY TERMED A CATASTROPHE THAT WOULD TORPEDO MOVES TO CUT SPENDING AND SLOW INFLATION NOW RUNNING AT 30 A MONTH BUT THE ACTION FOLLOWED A VICTORY FOR THE GOVERNMENT WHEN LEGISLATORS VOTED TO IMPLEMENT A DISPUTED 025 TAX ON MOST CHECKING AND BANK SAVINGS TRANSACTIONS THE TAX IS INTENDED TO HELP REDUCE THE FEDERAL DEFICIT A MAJOR CAUSE OF INFLATION BOTH MEASURES REQUIRE SENATE APPROVAL THE SUCCESS OF THE ANTIINFLATION PLAN IS CRUCIAL TO BRAZILIAN NEGOTIATIONS ON RESCHEDULING 138 BILLION OF DEBT TO WESTERN GOVERNMENT LENDERS A RESCHEDULING PACT LAST YEAR WAS LINKED TO BRAZIL'S REACHING AN ACCORD WITH THE INTERNATIONAL MONETARY FUND AND COLLAPSED WHEN BRAZIL FAILED TO MEET ITS INFLATION TARGETS RUSSIA WAS ADMITTED AS THE 21ST PARTICIPANT IN THE EUREKA PROGRAM FOR EUROPEAN COOPERATIVE TECHNOLOGICAL RESEARCH WITH FORMER EAST BLOC COUNTRIES MICRONESIA A PACIFIC ISLANDS FEDERATION BECAME THE 178TH MEMBER NATION OF THE INTERNATIONAL MONETARY FUND AND 176TH MEMBER OF THE WORLD BANK 9306250098 930625 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 13/16 LOW 2 13/16 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 316 30 TO 59 DAYS 317 60 TO 89 DAYS 318 90 TO 119 DAYS 323 120 TO 149 DAYS 325 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 324 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 269 TWO MONTHS 275 THREE MONTHS 288 SIX MONTHS 315 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 313 ONE MONTH 320 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 309 30 DAYS 311 60 DAYS 314 90 DAYS 319 120 DAYS 324 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 21 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 701 60 DAYS 708 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306250097 930625 NEW YORKAREA FIRMS GAINING CONFIDENCE BUT HIRING IS STALLED NEW YORK DESPITE AN UNCERTAIN ECONOMY OWNERS OF SMALL AND MEDIUMSIZED BUSINESSES IN THE NEW YORK METROPOLITAN AREA APPEAR TO BE GAINING CONFIDENCE BUT HIRING PLANS REMAIN TEPID ACCORDING TO A RECENT SURVEY THE SURVEY CONDUCTED BY A UNIT OF ARTHUR ANDERSEN & CO POLLED 250 COMPANIES IN THE THREESTATE REGION WITH ANNUAL REVENUE OF 10 MILLION TO 125 MILLION COMPARED WITH RESULTS OF A SIMILAR SURVEY CONDUCTED SIX MONTHS AGO MORE BUSINESSES EXPECT INCREASES IN SALES AND NET INCOME IN THE CURRENT YEAR OF THE BUSINESSES SURVEYED 51 EXPECT AN INCREASE IN NET INCOME FOR 1993 COMPARED WITH 34 SIX MONTHS AGO NEARLY TWOTHIRDS OF BUSINESSES EXPECT AN INCREASE IN SALES COMPARED WITH 39 SIX MONTHS AGO THERE HAS BEEN A CLEAR IMPROVEMENT IN THE OUTLOOK OF SENIOR EXECUTIVES IN THE TRISTATE AREA SINCE OUR PRIOR SURVEY LAST FALL SAID LOU SALVATORE MANAGING PARTNER OF THE NEW YORK AREA OFFICES OF ARTHUR ANDERSEN WE FINALLY HAVE CONVINCING EVIDENCE THAT THE WORST OF THE RECESSION IN THIS REGION IS BEHIND US BUT JOB PLANS REMAIN MIRED IN CONCERNS ABOUT THE ECONOMY AND HEALTHCARE COSTS WITH MORE THAN HALF THE RESPONDENTS SAYING HEALTH COSTS WERE CONSTRICTING HIRING PLANS ONLY 32 OF THE 250 BUSINESSES SAY THEY EXPECT TO ADD PERMANENT STAFF THIS YEAR AND 40 EXPECT TO ADD NO ADDITIONAL STAFF ABOUT 22 OF BUSINESSES SAID THEY WILL ADD TEMPORARY EMPLOYEES INCREASE OVERTIME OR BOTH 9306250096 930625 ENTERPRISE BY BARBARA MARSH VENTURE CAPITALISTS SEE NEW INVESTMENT OPPORTUNITIES IN FAMILY BUSINESSES MANY VENTURECAPITAL FIRMS ARE SEIZING ON ESTABLISHED FAMILY ENTERPRISES AS A LOWERRISK ALTERNATIVE TO YOUNGER ENTREPRENEURIAL FIRMS FAMILYBUSINESS CONSULTANTS SAY FRANCOIS DE VISSCHER A STAMFORD CONN FINANCIAL ADVISER SAYS HE GETS ABOUT 20 CALLS A MONTH FROM INVESTORS INTERESTED IN FAMILY FIRMS DOUBLE THE LEVEL OF A YEAR AGO MANY SEEK OUT FAMILY COMPANIES NEEDING CAPITAL TO FINANCE MANAGEMENT SUCCESSION OR BUY OUT DISSIDENT SHAREHOLDERS GOLDER THOMA & CRESSY A CHICAGO VENTURECAPITAL FIRM BEGAN SHOPPING FOR SUCH OPPORTUNITIES THIS SPRING SAYS DAVID MAYER AN ANALYST WITH THE FIRM IT IS LOOKING FOR FAMILY COMPANIES IN WHICH TO INVEST 5 MILLION TO 30 MILLION EACH FOR AS MUCH AS EIGHT YEARS TARGETING A RETURN OF 30 TO 40 A YEAR GOLDER THOMA WANTS A CONTROLLING STAKE IN ANY COMPANY AND THE CHANCE TO TAKE IT PUBLIC EVENTUALLY MR MAYER SAYS BUT MANY FAMILY BUSINESSES PREFER AN OUTSIDER TO TAKE A MINORITY STAKE SAYS JOHN WARD A BUSINESS PROFESSOR AT LOYOLA UNIVERSITY IN CHICAGO THAT WAY THEY AVOID PRESSURE TO PUT THEIR COMPANY UP FOR SALE OR MAKE A PUBLIC OFFERING ENDEAVOUR CAPITAL PORTLAND ORE IS ONE VENTURE FIRM WILLING TO ACCEPT A MINORITY STAKE IT'S HELPING TO FINANCE THE REORGANIZATION OF A FAMILY COMPANY THIS YEAR ENABLING ONE BROTHER TO PURSUE SEPARATE GOALS FROM THOSE OF HIS THREE BROTHERS ENDEAVOUR IS INVESTING WITH THE ONE BROTHER WHO WILL RUN A COMPANY THAT WILL INCLUDE A NEWLY ACQUIRED MILLER BEER DISTRIBUTORSHIP THE REMAINING BROTHERS WILL STICK WITH THE FAMILY'S ANHEUSERBUSCH DISTRIBUTORSHIP AS STRATEGIC ALLIANCES PROLIFERATE PROBLEMS ALSO GROW WITH CAPITAL SCARCE MORE ENTREPRENEURS ARE FORMING ALLIANCES WITH OTHER COMPANIES TO FUEL EXPANSION CONSULTANTS SAY A COOPERS & LYBRAND SURVEY OF 328 FASTGROWING ENTREPRENEURIAL COMPANIES IN MARCH FOUND THAT 55 HAVE SUCH ALLIANCES OFTEN WITH SEVERAL COMPANIES BUT ONE IN THREE REPORTED A NEGATIVE EXPERIENCE IN WHICH AN ALLIANCE PROVED INEFFECTIVE ENDED EARLY OR TURNED OUT POORLY FOR BOTH SIDES MOST OF THE UNHAPPY COMPANIES ENTERED THE ALLIANCES CASUALLY GEORGE AUXIER COOPERS & LYBRAND'S NATIONAL DIRECTOR OF ENTREPRENEURIAL ADVISORY SERVICES URGES THAT BEFORE JUMPING INTO ALLIANCES ENTREPRENEURS MAKE SURE BOTH SIDES' AIMS ARE CLEAR AND COMPATIBLE OTHERWISE YOU HAVE A HIGHER DEGREE OF RISK OR POTENTIAL FAILURE RATE HE SAYS RODNEY JOFFEE OWNER OF AMERICAN COMPUTER GROUP CHATSWORTH CALIF HAS TRIED REPEATEDLY TO FIND THE RIGHT PARTNER HIS COMPANY COMPILES MAILINGLIST DATA FOR MAILORDER FIRMS AND NEEDS SOMEONE TO DEVELOP COMPUTER PROGRAMS ENABLING ITS CLIENTS TO BETTER TARGET THEIR MAILINGS BUT THREE COMPANIES HE TEAMED WITH COULDN'T PRODUCE USEFUL PROGRAMS HE SAYS AND HE'S WORKING ON HIS FOURTH RICHARD CHENG CHAIRMAN OF EASTERN COMPUTERS VIRGINIA BEACH VA DEVELOPED A COMPUTER BOARD THAT CREATED FOREIGNLANGUAGE CHARACTERS FOR PRODUCING UP TO 43 LANGUAGES AND FOUND DISTRIBUTORS IN HONG KONG AND ELSEWHERE UNFORTUNATELY A COUNTERFEIT VERSION OF HIS PRODUCT GRABBED THE CHINESE MARKET BEFORE EASTERN COULD GEAR UP FOR PRODUCTION HE SAYS WHEN YOU GO OVERSEAS HE SAYS YOU HAVE TO BE VERY CAREFUL RURAL STATES PROMOTE HOME BUSINESSES AS A KEY TO ECONOMIC STABILITY AFTER MEETING WITH LIMITED SUCCESS IN ATTRACTING CORPORATE JOBS STATE ECONOMICDEVELOPMENT OFFICIALS SEE HOME BUSINESSES AS A STEADYING FORCE FOR SMALL TOWNS STATES ARE REALIZING THAT THERE ARE ONLY SO MANY BUSINESSES THAT CAN BE OBTAINED FROM OTHER STATES AND THAT THEY MUST SUPPORT THEIR OWN RESOURCES SAYS PAUL EDWARDS A HOMEBUSINESS CONSULTANT IN SANTA MONICA CALIF STATES ARE STARTING NETWORKS OF HOME ENTERPRISES TO OFFER BUSINESS TIPS AND CAMARADERIE OKLAHOMA STATE UNIVERSITY'S COOPERATIVE EXTENSION SERVICE FUNDED BY THE STATE AND FEDERAL GOVERNMENTS HAS TARGETED HOME BUSINESSES AS A WAY TO RETAIN JOBS IN RURAL COMMUNITIES MARILYN BURNS A SPECIALIST ON HOMEBASED BUSINESS FOR THE EXTENSION SERVICE STARTED A STATEWIDE ASSOCIATION OF ABOUT 500 HOME BUSINESSES IN 1990 MS BURNS ALSO GIVES SEMINARS ON STARTING SUCH VENTURES AND SERVES AS A RESOURCE FOR PEOPLE WITH HOME BUSINESSES SHE HAS WRITTEN A HANDBOOK FOR OTHER STATES INTERESTED IN SETTING UP A SIMILAR SERVICE STRUGGLING OWNERS SEE SUCH OUTREACH EFFORTS AS ESSENTIAL EVERYBODY IS DESPERATELY SEARCHING FOR SOME WAY TO MAKE A LIVING OUT HERE IN THE COUNTRY SAYS JANICE GARRETT A MINDEN NEB FARMER MS GARRETT WHO MAKES FURNITURE AND OTHER HOME ITEMS WITH HER HUSBAND TO SUPPLEMENT THEIR FARMING INCOME LEARNED AT A RECENT STATESPONSORED SEMINAR THAT THEY COULD USE AN ELECTRONIC BULLETIN BOARD THROUGH A NEARBY PUBLIC LIBRARY TO LOCATE SUPPLIERS AND POTENTIAL RETAILERS FOR THEIR GOODS STATES ARE ENCOURAGING LOCAL OFFICIALS TO LIFT ZONING RESTRICTIONS ON HOME BUSINESSES LAST YEAR IDAHO MADE A VIDEOTAPE TO IMPRESS ON TOWN OFFICIALS THE ECONOMIC POTENTIAL OF HOME BUSINESSES TOWNS ARE HELPING TOO IN MARCH STILLWATER OKLA LIFTED A BAN ON HOME BUSINESSES EMPLOYING ANYONE WHO DOESN'T LIVE IN THE HOME THE CITY NOW LIMITS PARKING SIGNS AND OTHER OBVIOUS INDICATORS OF BUSINESS ACTIVITY ONE HOME BUSINESS STILLWATER STILL DISCOURAGES AUTOREPAIR SHOPS THE RECENTLY FORMED COMMITTEE TO PRESERVE THE AMERICAN FAMILY BUSINESS INTENDS TO LOBBY CONGRESS TO EXEMPT FAMILY BUSINESSES FROM ESTATE TAXES NORWEST CORP A MINNEAPOLIS COMMERCIAL BANK PLANS TO INVEST 250000 IN WOMEN'S EQUITY FUND A BOULDER COLO VENTURECAPITAL FIRM THAT FOCUSES ON BUSINESSES OWNED BY WOMEN NORWEST ALSO WILL MAKE 25 MILLION AVAILABLE FOR LENDING TO COMPANIES IN WHICH THE FUND INVESTS 9306250095 930625 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO SECONDQUARTER EARNINGS COULD SHOW 31 INCREASE GOODYEAR TIRE & RUBBER CO AKRON OHIO SAID IT EXPECTS TO REPORT STRONG EARNINGS IN ITS SECOND QUARTER WITH NET INCOME EXPECTED TO RISE AS MUCH AS 31 TO BETWEEN 130 MILLION AND 140 MILLION COMPARED WITH THE 1069 MILLION THE TIRE MAKER REPORTED IN THE YEARAGO QUARTER SALES ARE PROJECTED TO MATCH THE 31 BILLION REPORTED IN THE YEARAGO QUARTER ALTHOUGH IF REVENUE FROM THE COMPANY'S DIVESTED POLYESTER AND INDUSTRIAL FILMS DIVISIONS ARE EXCLUDED FROM SALES IN THE YEARAGO QUARTER THE CURRENT QUARTER WOULD SET A NEW HIGH GOODYEAR SAID PROFITABILITY IMPROVED AS A RESULT OF REDUCTIONS IN INTEREST EXPENSE A 4 CUT IN WORLDWIDE EMPLOYMENT AND HIGHER EFFICIENCY AT ITS PLANTS WHICH ARE OPERATING NEAR CAPACITY HOWEVER CHAIRMAN STANLEY GAULT CAUTIONED THAT DEMAND AND THE US ECONOMY ARE UNCERTAIN IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GOODYEAR CLOSED AT 4075 UP 175 9306250094 930625 A NEW VISION CITICORP CHIEF REED ONCE A BIG THINKER GETS DOWN TO BASICS HE BRINGS IN STEFFEN OF KODAK TO SPEED A REVAMPING PATTERNED ON FACTORIES HIGHER PROFITS LOWER MORALE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL FOR A BANKER JOHN REED HAS AN UNUSUAL AFFINITY FOR INDUSTRIAL MANUFACTURING IN HIS EARLY DAYS AT CITICORP HE RANKLED PEERS WHEN HE SAID THAT SINCE A BANK WAS NOTHING MORE THAN A FACTORY THEY COULD BE REPLACED BY MACHINES THEN TWO YEARS AGO AS CITICORP'S CHIEF EXECUTIVE HE TOURED FORD MOTOR CO CUMMINS ENGINE CO AND GENERAL ELECTRIC CO FOR IDEAS ON HOW TO COPY THEIR SUCCESSES IN REENGINEERING THE WORK PROCESS NOW HE HAS PUT AT HIS RIGHT HAND CHRISTOPHER STEFFEN A HARDCHARGING INDUSTRIALIST WHO RECENTLY RESIGNED ABRUPTLY AS CHIEF FINANCIAL OFFICER OF EASTMAN KODAK CO AFTER A CLASH WITH THE COMPANY'S CHAIRMAN KAY WHITMORE ON HOW QUICKLY TO SELL ASSETS AND CUT COSTS IN MR STEFFEN THE 54YEAROLD MR REED MAY HAVE FOUND AN EXECUTIVE WHO CAN SERVE AS THE CATALYST FOR THE KIND OF SWEEPING CHANGE IN CULTURE AND OPERATIONAL METHODS THAT MR REED ENVISIONS TO STAY COMPETITIVE WITH MR STEFFEN 51 THERE TO TIGHTEN FINANCIAL CONTROLS THROUGHOUT THE COMPANY MR REED IS PUTTING THE REVAMPING HE BEGAN TWO YEARS AGO TO ITS SEVEREST TEST THE COMPANY ALREADY HAS BEGUN TO MAKE STRIDES AFTER RECORDING A 914 MILLION LOSS BEFORE SPECIAL ITEMS IN 1991 CITICORP REVERSED THE RED INK LAST YEAR AS THE WRITEOFFS OF BAD REALESTATE LOANS EASED POSTING A MODEST 722 MILLION PROFIT IN THE FIRST QUARTER EARNINGS DOUBLED FROM A YEAR EARLIER THE STOCK WHICH HAD SUNK TO BELOW 9 IN 1991 CLOSED ON THE NEW YORK STOCK EXCHANGE YESTERDAY AT 29375 UP 875 CENTS IN THE PAST TWO YEARS CITICORP HAS SLASHED ITS WORK FORCE BY 14000 EMPLOYEES OR 15 IT HAS TRIMMED OPERATING EXPENSES 12 AND THE COMPANY WHICH ONCE HAD 240 DATA CENTERS NOW HAS 60 AND HOPES EVENTUALLY TO CONSOLIDATE THEM INTO AS FEW AS 20 EMPLOYEES WERE TOLD TO FORGO COVER LETTERS ON FAXES OUT WENT SOME TAXIS AND LUNCHES ON THE COMPANY ONE PLANE IN CITICORP'S FLEET OF FIVE WAS SOLD CITICORP NOW IS AT THE CRITICAL POINT OF GETTING THOSE WHO REMAIN TO WORK IN A MORE COLLEGIAL DISCIPLINED WAY WITH THE BANKING COMPANY STILL AT THE EARLY STAGE OF REENGINEERING MR STEFFEN CAN MAKE OR BREAK THAT EFFORT A CONFRONTATIONAL MANAGER HE IS BOTH ADMIRED AND FEARED FOR PUSHING EXECUTIVES TO LOOK BEYOND THE CONFINES OF THEIR NARROW INTERESTS AND HE BRINGS NEEDED CREDIBILITY TO THE UPPER ECHELONS OF MANAGEMENT MR REED HAS ATTRACTED A HIGHLY VISIBLE OUTSIDE IRRITANT SAYS JOEL FRIEDMAN A PARTNER AT ANDERSEN CONSULTING IT'S A CLEAR SIGNAL TO THE ORGANIZATION THAT THE GROUND RULES ARE DIFFERENT MR STEFFEN ALSO IS A PROVEN FINANCIAL CONTROLLER AND AUDITOR WITH A SHARP PENCIL AND A NONONSENSE ATTITUDE HIS EXPERTISE WILL BE NEEDED DESPITE MEETING ALL CAPITAL REQUIREMENTS CITICORP IS STILL UNDER THE CLOSE WATCH OF BANK REGULATORS THROUGH A WRITTEN ENFORCEMENT PACT REGULATORS SAY THEY SCRUTINIZE MANAGEMENT AS MUCH AS THE HARD FINANCIAL NUMBERS MR REED HAS SAID THAT THE REGULATORS WON'T GET OFF THE BANK'S BACK UNTIL IT PROVES IT CAN BE BETTER MANAGED IT HAS BEEN PLAGUED BY POOR FINANCIAL CONTROLS UNDERSCORED IN A SEVERE EXAMINATION OF ITS HOMEMORTGAGE BUSINESS LAST YEAR BY THE COMPTROLLER OF THE CURRENCY WE'RE FRANKLY STILL ON PROBATION' WITH THE MARKET THE RATING AGENCIES AND THE REGULATORS MR REED TOLD TOP EXECUTIVES AT A MARCH MEETING IN LOS ANGELES THOUGH ITS CAPITAL HEALTH HAS STRENGTHENED AND IT HAS FEWER BAD LOANS CITICORP HAS TOLD EMPLOYEES IT WILL HAVE TO ADD 15 BILLION IN RESERVES AS WELL AS MORE CAPITAL TO BRING IT UP TO THE LEVEL OF ITS PEERS FACING THESE PROBLEMS MR REED HAS UNDERGONE A MANAGEMENT CONVERSION ONCE A PROPONENT OF DECENTRALIZED MANAGEMENT AND GIVEN TO BROAD STRATEGIC THINKING HE HAS BECOME A HANDSON CHIEF WHO HAS EMBRACED THE NITTYGRITTY OF MANAGING REED HAS GONE THROUGH A BIT OF A TRANSFORMATION OR EVOLUTION SAYS MONEY MANAGER JOHN NEFF ONE OF THE COMPANY'S BIGGEST SHAREHOLDERS MR REED HAS DECLINED REPEATED REQUESTS FOR AN INTERVIEW MR STEFFEN DECLINES TO COMMENT AS WELL MR REED HAS ALWAYS BEEN A BIT OUT OF THE ORDINARY HE JOKES THAT HE IS PROBABLY THE ONLY MEMBER OF THE BUSINESS ROUNDTABLE WHO VOTED FOR GEORGE MCGOVERN IN 1972 HE TURNED THE BANKING INDUSTRY ON ITS HEAD WHEN ANNOUNCING A HUGE RESERVE IN 1987 TO COVER LOANS TO DEVELOPING COUNTRIES AN ANNOUNCEMENT THAT WAS MADE DESPITE OBJECTIONS FROM PAUL VOLCKER THEN CHAIRMAN OF THE FEDERAL RESERVE BOARD AND HE HAS ALWAYS BEEN FASCINATED BY MANAGEMENT TECHNIQUES OF MANUFACTURING COMPANIES AN ENGINEER BY TRAINING MR REED IN HIS FIRST MEMORABLE MOVE AT THE BANK REORGANIZED BACKOFFICE OPERATIONS A STEP THAT BECAME A CASE STUDY AT HARVARD BUSINESS SCHOOL ODDLY THOUGH WHILE THE INDUSTRIAL WORLD EMBARKED ON A DRIVE TO CUT THE FAT AFTER THE EARLY1980S RECESSION MR REED LET CITICORP GROW BLOATED AFTER HE BECAME CHAIRMAN AND CHIEF EXECUTIVE IN 1984 AND CONTINUED PILING ON RISKY LOANS CITICORP HAD TRADITIONALLY BEEN A DECENTRALIZED BANK ACTING LIKE A GLOBAL CONFEDERATION OF FIEFDOMS ITS REACH EXTENDED TO MORE THAN 90 COUNTRIES AND IT HAD NEARLY 100000 EMPLOYEES EACH MAJOR DIVISION HAD ITS OWN LEGAL FINANCIAL CONTROL AND HUMANRESOURCES STAFF IT HAD 100 COMMUNICATIONS NETWORKS SOME OF WHICH COULD NOT CONVERSE WITH OTHERS EVERYONE HAD BUILT THEIR OWN SYSTEM AND INFRASTRUCTURE SAYS COLIN CROOK THE BANK'S CHIEF OF TECHNOLOGY THE COST OF DUPLICATION BECAME PROHIBITIVE BUT RECENT EVENTS CONVINCED MR REED THAT CITICORP STILL HAS A LOT TO LEARN FROM ITS MANUFACTURING CLIENTS PERHAPS NO OTHER ADVISER HAS BEEN MORE HELPFUL THAN JOHN WELCH CHAIRMAN OF GE AND A CONFIDANT OF MR REED PEOPLE CLOSE TO MR REED SAY THESE PEOPLE SAY THE CITICORP CHIEF HAS ASKED ABOUT THE CHARACTERISTICS OF GE THAT ALLOWED IT TO AVOID THE FATE OF OTHER LARGE COMPANIES AND ABOUT HOW TO CHANGE AN ORGANIZATION WHILE KEEPING IT INTACT MR WELCH DECLINES TO COMMENT AMID THE CRISIS ATMOSPHERE AT THE BANK IN 1991 MR REED BEGAN URGING SENIOR EXECUTIVES TO READ THE MACHINE THAT CHANGED THE WORLD A MASSACHUSETTS INSTITUTE OF TECHNOLOGY STUDY ON HOW US AUTO MAKERS ADOPTED JAPANESE PRINCIPLES OF LEAN PRODUCTION THE BOOK GALVANIZED MR REED BECAUSE IT SHOWED THAT A MANUFACTURING COMPANY COULD ACHIEVE GREATER OUTPUT WITH FEWER RESOURCES BY USING FLEXIBLE WORK TEAMS WHEN MR REED REORGANIZED THE TOP ECHELONS OF THE BANK IN EARLY 1992 WITH A LEANER STRUCTURE OF A MANAGEMENT COMMITTEE AND 15 LINE OFFICERS HE COPIED MOVES BY EXXON CORP AND TASK FORCES SET UP ACROSS BUSINESS LINES USING FORD AND OTHERS AS MODELS HAVE MADE CITICORP LEANER ONE REASON CITICORP WAS SO SUCCESSFUL AT CUTTING FAT WAS THAT THERE WAS PLENTY OF IT EVEN IN 1990 WHEN IT WAS BECOMING CLEAR THE BANK WAS IN DEEP TROUBLE OPERATING EXPENSES ROSE 12 MUCH OF CITICORP'S COSTCUTTING WAS IN TRADITIONAL EXPENSE REDUCTIONS RATHER THAN REENGINEERING MR REED BELIEVES ANOTHER 1 BILLION IN COSTS CAN BE CUT THROUGH TECHNIQUES SUCH AS CHANGING THE WAY CITICORP PROCESSES PRODUCTS AND DATA CONSULTANTS CONTEND BANKS COULD CUT 25 TO 35 OF OPERATING COSTS THROUGH SUCH REENGINEERING IT IS HERE THAT MR STEFFEN WILL STEP IN IN ESSENCE HE REPLACES FORMER PRESIDENT RICHARD BRADDOCK AS THE TOUGH GUY ON EXPENSES MR BRADDOCK 51 CONSIDERED THE BEST HANDSON MANAGER AMONG SENIOR OFFICIALS AND THE ONE PERSON WHO COULD HAVE FILLED MR REED'S SHOES WAS PUSHED OUT BY THE CHAIRMAN LAST OCTOBER PEOPLE CLOSE TO MR REED SAY WHILE SOME HAVE WONDERED HOW MR STEFFEN'S BRUSQUE STYLE WILL FIT IN AT CITICORP SOME SAY HE WILL PROBABLY GET ALONG IN ITS ROUGHANDTUMBLE CULTURE I CAN ASSURE YOU HE IS NOT A GUY YOU CAN ROLL OVER A FRIEND OF HIS SAYS BUT AS SENIOR EXECUTIVE VICE PRESIDENT AND ONE OF THE COMPANY'S TOP SIX OFFICERS MR STEFFEN WILL BE INEVITABLY STEPPING ON TOES AS HE CARVES OUT HIS RESPONSIBILITIES THOSE INCLUDE AUDITING FINANCIAL CONTROLS AND PRODUCTIVITY ENHANCEMENT THE HARD PART OF REENGINEERING IS CHANGING THE CULTURE NOTES MR FRIEDMAN OF ANDERSEN CONSULTING AT CITICORP THE POTENTIAL FOR CONFLICT IS RIFE BECAUSE TEAMWORK HAS TRADITIONALLY NOT BEEN A TRAIT REWARDED THERE IN THE DAYS OF WALTER WRISTON IN THE 1970S AND EARLY '80S THE SILVERHAIRED FORMER CHAIRMAN BRED COMPETITION AND CITIBANKERS FOUND THEMSELVES PITTED AGAINST ONE ANOTHER AS WELL AS THE REST OF THE BANKING INDUSTRY THAT ALSO CREATED A RUTHLESS POLITICAL ENVIRONMENT MR REED IS TRYING TO CHANGE IT HE HAS THROWN AWAY HIS MENTOR'S BLUEPRINT AND IS EMBRACING A MORE CONSENSUAL APPROACH IN ADDITION I'M HANDS ON AT A LEVEL OF DETAILS THROUGHOUT THE COMPANY THAT I JUST DID NOT NORMALLY DO HE SAID LAST YEAR MR REED HAS DISCARDED TECHNIQUES HE ONCE BRAGGED ABOUT SPEAKING IN A HARVARD BUSINESS REVIEW INTERVIEW IN 1990 MR REED DISCUSSED A REVOLUTIONARY REORGANIZATION OF THE BANK INTO 50 GROUPS THAT WOULD WORK SEAMLESSLY BUT THE BANK ABANDONED THAT STRUCTURE IN 1991 FOR A SIMPLER ONE BASED ON PRODUCT BREAKDOWN MR REED WANTS TO GET ACROSS THE POINT THAT FIEFDOMS ARE A THING OF THE PAST AND THAT IS WHERE MR STEFFEN CAN HELP FORMER COLLEAGUES SAY THAT MR STEFFEN CARES LITTLE ABOUT INTERNAL POLITICS AND BECAUSE HE WON'T HAVE RESPONSIBILITY FOR REVENUE OR PROFIT HE WON'T BE BEHOLDEN TO ANY ONE PART OF THE BANK BUT IS LIKELY TO HAVE HIS HANDS IN ALL OF IT HIS ABILITY TO GET DISPARATE PARTS OF CHRYSLER TO WORK TOGETHER HELPED THE COMPANY ADOPT JAPANESE MANUFACTURING TECHNIQUES AND REVIVE THE STRUGGLING GIANT IN THE EARLY 1980S COLLEAGUES SAY IN SEPTEMBER 1982 MR STEFFEN THEN CONTROLLER PUT TOGETHER A TEAM TO GO TO JAPAN INVITING OFFICIALS FROM FINANCE ENGINEERING AND THE MANUFACTURING DEPARTMENTS THEY CAME BACK WITH REAMS OF ADVICE SINCE ALL MAJOR DIVISIONS WERE ON BOARD NO ONE FACTION QUASHED THE RECOMMENDATIONS MANY WERE IMPLEMENTED IT WAS THE FORERUNNER OF CROSSFUNCTIONAL TEAMS THAT AUTO MAKERS LATER ADOPTED SAYS DAVID ZIMMER CHIEF EXECUTIVE OFFICER OF CORE INDUSTRIES INC A MICHIGAN MANUFACTURER WHO WORKED WITH MR STEFFEN AT CHRYSLER WHILE THERE ISN'T ANY EVIDENCE THAT REGULATORS PUSHED MR REED TO HIRE MR STEFFEN MR REED BELIEVES HIS CURRENT MANAGEMENT IS INADEQUATE SAY PEOPLE CLOSE TO HIM JOHN FEELS THERE HAVE BEEN FAILINGS AT THE UPPERMANAGEMENT LEVELS SAYS ONE CITICORP OFFICIAL FOR EXAMPLE SOME OF THE RESPONSIBILITIES OF PAUL COLLINS WHO OVERSEES AUDIT AND FINANCIAL ACCOUNTING AS ONE OF THE BANK'S THREE VICECHAIRMEN WILL BE TAKEN BY MR STEFFEN MR COLLINS WON'T COMMENT IT IS UNCLEAR HOW EMPLOYEES WILL RESPOND TO ANOTHER ROUND OF REORGANIZATIONS SOME MORALE PROBLEMS ALREADY HAVE SURFACED AT A MEETING OF THE BANK'S 360 TOP EXECUTIVES IN MARCH SURVIVORS OF THE PAST FEW YEARS CRITIQUED SENIOR MANAGEMENT COMPLAINING ABOUT EVERYTHING FROM CRONYISM TO INSUFFICIENT SPENDING ON TECHNOLOGY IT TURNED REAL ANTAGONISTIC SAYS ONE CITIBANKER ONE COMPLAINT WAS THAT SENIOR EXECUTIVES INCLUDING MR REED WERE OUT OF TOUCH WITH THE AVERAGE EMPLOYEE UNLIKE MR WRISTON WHO ROAMED CITICORP'S HALLWAYS GETTING GRASSROOTS INTELLIGENCE MR REED IS SAID TO REMAIN LARGELY INVISIBLE THE CHAIRMAN DIDN'T HELP MATTERS WHEN HE TOLD THE GROUP THAT I'M MORE FAMILIAR WITH THE SOCIAL AND CULTURAL DYNAMICS OF THE NATION'S GHETTOS THAN THE INNER WORKINGS OF CITICORP PERHAPS THE MOST TROUBLING CONCERN OF SOME EXECUTIVES WAS A FEAR THAT THERE WOULD BE WHOLESALE DEFECTIONS ONCE THE ECONOMY TURNS AROUND AND MORE OPPORTUNITIES ARISE ELSEWHERE THE BANK RECENTLY LOST ITS LONGTIME HEAD OF GLOBAL FINANCE FOR NORTH ASIA ULTIMATELY THE RENAISSANCE THAT MR REED PLANS FOR CITICORP WILL RELY ON THE 360 PEOPLE AT THAT MEETING AND ONE IN PARTICULAR WHO WASN'T YET ON BOARD DRAWINGS OF CITICORP CHIEF EXECUTIVE OFFICER JOHN REED AND JOHN PETERPAUL THE TOP AIRLINE NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS WERE INADVERTENTLY SWITCHED IN FRIDAY'S EASTERN EDITION MR REED'S PICTURE SHOULD HAVE ACCOMPANIED A PAGEONE ARTICLE ON CITICORP WHILE MR PETERPAUL'S SHOULD HAVE APPEARED WITH A WHO'S NEWS ARTICLE ON THE MARKETPLACE PAGE 9306250093 930625 LETTERS TO THE EDITOR HOW HOSPITALS ASSIGN PAYMENT CODES YOUR MAY 4 PAGE ONE ARTICLE ON HEALTHCOST CURBS INCLUDES INCORRECT INFORMATION ATTRIBUTED TO A PRINCIPAL WITH HCIA INC THE ARTICLE STATES THAT IF A SURGICAL PATIENT DEVELOPS PNEUMONIA WHILE IN THE HOSPITAL A HOSPITAL ADMINISTRATOR HAS A CHANCE TO CHOOSE WHICH REIMBURSEMENT CODE WOULD BRING IN THE MOST MONEY A SURGICAL CODE OR A PNEUMONIA CODE FIRST THE HOSPITAL ADMINISTRATOR DOES NOT CHOOSE WHICH REIMBURSEMENT CODE WOULD BRING IN THE MOST MONEY THE PHYSICIAN LISTS THE DIAGNOSES AND THE PROCEDURES PERFORMED AND CODE NUMBERS ARE ASSIGNED TO THEM BY SPECIALLY TRAINED PROFESSIONAL CODING STAFF THE PHYSICIAN ATTESTS TO THE PRINCIPAL DIAGNOSIS UPON WHICH ASSIGNMENT TO A DRG DIAGNOSIS RELATED GROUP IS BASED THE PRINCIPAL DIAGNOSIS IS THAT CONDITION WHICH AFTER STUDY IS DETERMINED TO HAVE CAUSED THE ADMISSION OF THE PATIENT TO THE HOSPITAL CONDITIONS THAT EXIST AT THE TIME OF ADMISSION OR THAT DEVELOP DURING THE HOSPITAL STAY MAY CAUSE A CASE TO BE GROUPED INTO A DRG WITH A GREATER REIMBURSEMENT VALUE WHEN A PATIENT'S ADMISSION IS CAUSED BY TWO DIFFERENT CONDITIONS BOTH OF WHICH ARE TREATED DURING THE HOSPITAL STAY EITHER OF THE TWO CONDITIONS MAY BE SELECTED AS THE PRINCIPAL DIAGNOSIS INDEED IN SUCH A CASE THE CODE THAT WOULD BRING IN THE MOST MONEY MAY BE SELECTED YOUR ARTICLE IS ALSO MISLEADING CONCERNING THE CODE CREEP ALSO CALLED DRG CREEP PHENOMENON IT SHOULD BE UNDERSTOOD THAT PRIOR TO THE PROSPECTIVE PAYMENT SYSTEM CODES WERE ASSIGNED AND USED PRIMARILY FOR STATISTICAL ANALYSIS AND RESEARCH FOR HOSPITALS NOT INVOLVED IN RESEARCH PROJECTS THERE WAS NO REAL INCENTIVE TO CODE AS ACCURATELY OR COMPLETELY AS AT A TEACHING FACILITY FOR EXAMPLE WHEN THE FINANCIAL VIABILITY OF A HOSPITAL BECAME DEPENDENT UPON THE ACCURACY AND THOROUGHNESS OF THE CODES MOST HOSPITALS RESPONDED BY PROVIDING INTENSIVE TRAINING IN CODING PRINCIPLES AS WELL AS IMPLEMENTING REVIEW AND CONTROL MEASURES TO ASSURE QUALITY CODING IT IS UNTRUE TO SAY AS YOUR ARTICLE SUGGESTS THAT PHYSICIANS' RESPONSE TO MEDICARE'S FEE SCHEDULE WAS TO RAPIDLY INCREASE THE VOLUME OF SERVICES IT WAS SUGGESTED THAT RADIOLOGY IS A PARTICULAR PROBLEM SPOT IN FACT THE PORTION OF MEDICARE'S TOTAL SPENDING FOR PHYSICIANS' SERVICES THAT WENT FOR RADIOLOGIC SERVICES ACTUALLY DECREASED FROM 115 IN 1987 TO 105 IN 1991 THE LATEST FIGURES AVAILABLE OVER THE PAST FIVE YEARS MEDICARE'S SPENDING FOR RADIOLOGIC SERVICES PERFORMED BY NONRADIOLOGISTS HAS GROWN ABOUT 4 A YEAR FASTER THAN MEDICARE SPENDING FOR RADIOLOGY DONE BY RADIOLOGISTS RADIOLOGISTS AND THE PHYSICIANS REFERRING PATIENTS TO THEM HAVE BEEN TEMPERATE IN THEIR RESPONSE TO DECREASES IN REIMBURSEMENT 9306250092 930625 BUSINESS BRIEF RAX RESTAURANTS INC AMENDED RESTRUCTURING PLAN EXCLUDES SMALL SHAREHOLDERS RAX RESTAURANTS INC SAID IT FILED A SECOND AMENDED REORGANIZATION PLAN IN WHICH SMALL SHAREHOLDERS WHICH HELD 22 OF THE DUBLIN OHIO COMPANY WOULD RECEIVE NOTHING THE PLAN PROVIDES FOR ITS LARGEST SHAREHOLDERS TO RECEIVE SHARES OF STOCK IN THE REORGANIZED SANDWICHSHOP CHAIN THE PLAN CALLS FOR RAX'S LARGEST SECURED CREDITOR CITICORP'S CITICORP VENTURE CAPITAL TO GET A 60 INTEREST IN THE REORGANIZED COMPANY WITH A 30 INTEREST TO BE HELD BY UNSECURED CREDITORS AND 10 BY MANAGEMENT UNSECURED CREDITORS WOULD HAVE THE OPTION OF RECEIVING 10 CENTS ON EACH DOLLAR OWED IF THEY ELECT TO TAKE CASH RATHER THAN EQUITY THE PLAN FILED IN COLUMBUS OHIO LISTS ASSETS OF 282 MILLION AND LIABILITIES OF 229 MILLION AND CALLS FOR THE RESTRUCTURING OF VARIOUS SECURED BANK LOANS THE NEW COMPANY WOULD HAVE 376000 SHARES 9306250091 930625 WHO'S NEWS KEYCORP OUSTS HARJO AS CHAIRMAN CEO OF WASHINGTON UNIT ALBANY NY KEYCORP SAID IT FIRED HANS J HARJO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS TACOMA WASH UNIT PARTLY FOR WHAT IT CALLED HIS UNDERMINING OF THE BANK'S IMAGE IN THE AREA THE IMAGE THAT WAS DEVELOPING WAS THAT WE WERE AN INVADING NEW YORK BANK AN IDEA WHICH THE COMPETITION WOULD LOVE TO NURTURE A KEYCORP SPOKESMAN SAID MR HARJO MUST ACCEPT THE RESPONSIBILITY FOR THE BAD MEDIA IMAGE WHICH DIDN'T FOSTER KEYCORP'S AIM TO PROMOTE ITSELF AS A COMMUNITY BANK HE SAID KEY BANK OF WASHINGTON FORMERLY KNOWN AS KEY BANK OF PUGET SOUND WAS MERGED WITH PUGET SOUND BANCORP WHICH KEYCORP A 30 BILLION BANK HOLDING COMPANY ACQUIRED EARLIER THIS YEAR IN A STOCK SWAP VALUED AT 1 BILLION KEY BANK OF WASHINGTON HAS 66 BILLION IN ASSETS THIS WAS THE LARGEST INVESTMENT KEYCORP HAS EVER MADE AND WE'RE MORE DEMANDING ABOUT THE PERFORMANCE OF THE BANK THE SPOKESMAN SAID HE NOTED THAT MR HARJO 53 YEARS OLD WAS ASKED FOR HIS RESIGNATION MR HARJO COULDN'T BE REACHED FOR COMMENT KEYCORP SAID IT PLANS TO NAME DEBORAH L BEVIER 42 TO SUCCEED MR HARJO MS BEVIER IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF KEY BANK USA RALPH K HOLLIDAY WILL CONTINUE AS KEY BANK OF WASHINGTON'S PRESIDENT AND CHIEF OPERATING OFFICER MR HARJO'S DEPARTURE COMES ON THE HEELS OF THE RESIGNATION EARLIER THIS WEEK OF JAMES R WATERSTON KEYCORP'S CHIEF BANKING OFFICER MR WATERSTON CITED IMPEDIMENTS TO HIS CAREER ASPIRATIONS SEPARATELY STANDARD & POOR'S CORP SAID IT REVISED ITS DEBTRATING OUTLOOK ON KEYCORP TO POSITIVE FROM STABLE DUE TO THE BANK HOLDING COMPANY'S STEADY FINANCIAL PERFORMANCE THE RATINGS AGENCY SAID IT AFFIRMED ITS RATINGS ON KEYCORP'S SENIOR DEBT AT SINGLEAMINUS ITS SUBORDINATED DEBT AT TRIPLEBPLUS ITS PREFERRED STOCK AT TRIPLEB AND ITS COMMERCIAL PAPER AT A2 ABOUT 500 MILLION OF OVERALL LONGTERM DEBT IS AFFECTED 9306250090 930625 LETTERS TO THE EDITOR AN INTERESTED OBSERVER IN REGARD TO YOUR MAY 28 WASHINGTON WIRE OFFICIALS SEEK TO SOFTEN THEIR NEW GETTOUGH POLICY TOWARD JAPAN FORMER COMMERCE SECRETARY PETER PETERSON WHO IS QUOTED IN THE ARTICLE AS SAYING THERE'S A BALANCE NEEDED OF STICKS AND CARROTS TO GET JAPAN TO CHANGE POLICY IS HARDLY A DISINTERESTED OBSERVER IN THE MATTER OF TRADE RELATIONS BETWEEN THE US AND JAPAN MR PETERSON IS A MEMBER OF SONY CORP'S BOARD OF DIRECTORS THE PARENT COMPANY OF SONY MUSIC ENTERTAINMENT INC FORMERLY CBS RECORDS INC ON WHOSE BOARD OF DIRECTORS HE ALSO SERVES FURTHER MR PETERSON IS CHAIRMAN OF THE BLACKSTONE GROUP HIS COMPANY REPRESENTED SONY CORP AND NOT OUT OF THE KINDNESS OF ITS HEART IN THE ACQUISITIONS OF CBS RECORDS AND COLUMBIA PICTURES 9306250089 930625 LETTERS TO THE EDITOR TVA WE PAY OUR WAY IN ROBERT BARRO'S MAY 26 EDITORIAL PAGE ARTICLE DEFICIT REDUCTION MADE EASY HE REFERS TO THE TENNESSEE VALLEY AUTHORITY AS AN ENERGY SUPPLY SOURCE IN THE FEDERAL BUDGET CAPABLE OF SUSTAINING A 50 CUT MR BARRO'S REFERENCE TO TVA IS UNCLEAR AND MISLEADING TVA'S SHARE OF HIS PROPOSED 26 BILLION IN ENERGY SUPPLY REDUCTIONS IS ABOUT 500 MILLION MORE IMPORTANTLY THIS 500 MILLION IS ASSOCIATED WITH TVA'S POWER PROGRAM WHICH IS SELFSUSTAINING THROUGH REVENUES GENERATED FROM RATEPAYERS NOT TAXPAYERS TVA'S POWER EXPENDITURES ARE INCLUDED IN THE FEDERAL BUDGET ONLY AS AN ACCOUNTING QUIRK WHILE MR BARRO'S SUGGESTIONS FOR CUTTING THE DEFICIT ARE LAUDABLE REDUCTIONS OF TVA'S BUDGET WOULD HAVE LITTLE EFFECT ON THE TAXPAYER 9306250088 930625 INTERNATIONAL THREE USRELATED COMPANIES DRAGGED INTO ITALIAN INVESTIGATION SMITHKLINE FOOTE CONE YOUNG & RUBICAM UNITS EXEXECUTIVES ARRESTED BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN SMITHKLINE BEECHAM PLC THE ANGLOAMERICAN PHARMACEUTICAL COMPANY AND TWO US ADVERTISING AGENCIES YOUNG & RUBICAM INC AND FOOTE CONE & BELDING COMMUNICATIONS INC WERE SNARED IN ITALY'S EVERWIDENING KICKBACK SCANDAL AS FORMER EXECUTIVES OF THEIR ITALIAN SUBSIDIARIES WERE ARRESTED ON CORRUPTIONRELATED ALLEGATIONS IT WAS THE FIRST TIME USRELATED COMPANIES HAVE BEEN DRAGGED INTO THE ITALIAN INVESTIGATIONS THE EXECUTIVES ALONG WITH MANAGERS OF SEVERAL ITALIAN AND EUROPEAN AD AGENCIES AND PHARMACEUTICAL COMPANIES WERE ARRESTED AND QUESTIONED AS PART OF AN INVESTIGATION OF ALLEGED CORRUPTION IN THE ITALIAN HEALTH MINISTRY SOME WERE PLACED UNDER HOUSE ARREST PENDING FURTHER INVESTIGATIONS PROSECUTORS ALLEGED THAT THE ADVERTISING MANAGERS PAID KICKBACKS TO THE HEALTH MINISTRY TO OBTAIN PORTIONS OF AN AIDSAWARENESS AD CAMPAIGN THE DRUG COMPANY MANAGERS WERE CHARGED WITH PAYING OFF OFFICIALS IN EXCHANGE FOR REGULATED PRICE INCREASES ON THEIR PRODUCTS THE ARRESTS FOLLOW TESTIMONY GIVEN TO MAGISTRATES BY GIOVANNI MARONE FORMER SECRETARY TO EXHEALTH MINISTER FRANCESCO DE LORENZO TWO DIRECTORS OF ARMANDO TESTA ITALY'S LEADING ADVERTISING AGENCY AND A VICE PRESIDENT OF SCR ASSOCIATI ONE OF ITALY'S LARGEST PUBLIC RELATIONS FIRMS ALSO WERE ARRESTED IN CONNECTION WITH THE AIDS CAMPAIGN SCR IS A SUBSIDIARY OF BRITAIN'S SHANDWICK PLC ONE OF THE WORLD'S LEADING PUBLIC RELATIONS FIRMS EXECUTIVES OF TWO ITALIAN COMMERCIAL TELEVISION NETWORKS ALSO WERE ALLEGED TO HAVE PAID BRIBES TO THE HEALTH MINISTRY BEFORE THE AIDS ADVERTISEMENTS WERE AIRED ON THE NETWORKS IN THE PHARMACEUTICALS INVESTIGATION EXECUTIVES OF AT LEAST FIVE ITALIAN DRUG COMPANIES WERE ARRESTED ALONG WITH CORRADO LUPO A FORMER PUBLIC RELATIONS EXECUTIVE AT THE ITALIAN SUBSIDIARY OF SMITHKLINE BEECHAM ON SIMILAR CHARGES A SPOKESWOMAN FOR SMITHKLINE BEECHAM IN LONDON CONFIRMED THAT MR LUPO WAS ONE OF THOSE DETAINED AND SAID WE HAVE AS YET NO DETAILED INFORMATION ON THE INVESTIGATION BUT WILL OF COURSE COOPERATE IF ASKED TO DO SO SHE SAID MR LUPO WHO REPORTEDLY WAS PLACED UNDER HOUSE ARREST LEFT THE COMPANY IN 1992 A SPOKESMAN FOR YOUNG & RUBICAM IN NEW YORK SAID ALESSANDRO INCECCHI A FORMER DIRECTOR OF Y&R IN ROME HAD BEEN DETAINED AND QUESTIONED UNDER ITALIAN LAW MAGISTRATES ARREST SUSPECTS AND QUESTION THEM IN PRISON BEFORE EITHER RELEASING OR INDICTING THEM THE Y&R SPOKESMAN SAID THE AGENCY HAD RUN A TELEVISION PRINT AND OUTDOOR AIDS AD CAMPAIGN FOR THE HEALTH MINISTRY MR INCECCHI THE SPOKESMAN SAID RESIGNED RECENTLY TO START HIS OWN BUSINESS HE REPORTEDLY IS ACCUSED OF PAYING 50 MILLION LIRE 32735 IN KICKBACKS FOOTE CONE & BELDING CONFIRMED THAT FAUSTO GIANNOTTI A RECENTLY RETIRED GENERAL MANAGER OF ITS ROME OFFICE HAD BEEN DETAINED FCB OWNS 49 OF A EUROPEWIDE JOINT VENTURE WITH FRENCH AD AGENCY PUBLICIS THE ITALIAN UNIT OF THE JOINT VENTURE PUBLICIS FCB/MAC RAN ONE PART OF THE AIDS PREVENTION CAMPAIGN A SPOKESMAN FOR FCB IN CHICAGO SAID THE COMPANY WAS COOPERATING WITH INVESTIGATORS A SPOKESWOMAN FOR ITALIAN AD AGENCY ARMANDO TESTA SAID IT WON A REGULAR BIDDING PROCEDURE FOR ITS PRIZEWINNING TV CAMPAIGN WARNING THE PUBLIC ABOUT AIDS SHE SAID THE AGENCY DECLINED TO COMMENT ON THE NEWS REPORTS BUT CONFIRMED THAT TWO MANAGERS HAD BEEN INTERROGATED AND PLACED UNDER HOUSE ARREST SCR ASSOCIATI'S PRESIDENT FURIO GARBAGNATI SAID THE ASSIGNMENT OF HIS COMPANY'S CAMPAIGN TARGETING CHILDREN AND OTHER SPECIFIC GROUPS THROUGH COMIC STRIPS VIDEOS AND PRINT ADS OCCURRED WITH THE WIDEST POSSIBLE REGULARITY AND TRANSPARENCY HE EXPRESSED SOLIDARITY WITH VICE PRESIDENT GIAN PAOLO GIRONDA ARRESTED ON A CHARGE OF ALLEGEDLY PAYING 100 MILLION LIRE IN KICKBACKS LAST WEEK ALDO BRANCHER AN EXECUTIVE WITH THE PUBLIC RELATIONS ARM OF SILVIO BERLUSCONI'S FININVEST SPA WAS ARRESTED ON CHARGES OF ILLEGAL POLITICALPARTY FINANCING IN CONNECTION WITH THE AIDS ADS 9306250087 930625 REVIEW & OUTLOOK EDITORIAL MR HACKNEY'S NOMINATION THE SENATORS SITTING AT THE HEARINGS TO BEGIN THIS MORNING ON PRESIDENT CLINTON'S NOMINEE FOR HEAD OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES CAN BE CERTAIN OF AT LEAST ONE THING THEY WILL NOT BE TOILING IN OBSCURITY THANKS TO RECENT NOTORIOUS EVENTS AT THE UNIVERSITY OF PENNSYLVANIA LED UNTIL RECENTLY BY PRESIDENT SHELDON HACKNEY THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE'S DELIBERATIONS OVER MR HACKNEY'S NOMINATION WILL HAVE TO SAY THE LEAST AN ATTENTIVE NATIONAL AUDIENCE IT'S HARDLY NECESSARY BY NOW TO EXPLAIN WHY MR HACKNEY IS THE UNIVERSITY HEAD WHO PRESIDED OVER THE WORLDFAMOUS WATER BUFFALO CASE WHICH SAW A PENN FRESHMAN CHARGED WITH RACIAL HARASSMENT AND PENN'S ADMINISTRATION IN FULL CRY PRESSING THE CASE THEY DID THIS MR HACKNEY TOLD US EARLY ON BECAUSE THE ADMINISTRATION HAD TO ABIDE BY THE PROCEDURES THAT ARE IN PLACE MOREOVER HE WENT ON THOSE PROCEDURES WERE IN HIS VIEW JUST AND FAIR HE HAS EVIDENTLY SINCE CHANGED HIS MIND IN LIGHT OF THE NATIONAL OUTPOURING OF SCORN AND MOCKERY THAT GREETED THE UNIVERSITY'S OBVIOUS LOSS OF PRUDENCE ADULT JUDGMENT OR COMMON SENSE ONLY AFTER THE PUBLICITY AND AFTER THE SORORITY WOMEN DROPPED THEIR CHARGES DID MR HACKNEY CONCLUDE THAT THE UNIVERSITY'S LEGAL MACHINERY DESIGNED TO PUNISH OFFENSIVE SPEECH NEEDED OVERHAULING NO OVERHAULING CAN FIX WHAT IS WRONG WITH UNIVERSITY HARASSMENT CODES WHICH DESERVE TO BE CONSIGNED TO OBLIVION ALONG WITH THEIR BIZARRE LEGAL MACHINERY BUT MORE TO THE POINT THOSE CODES AND THEIR MACHINERY DID NOT COME OUT OF THIN AIR THEY WERE PRODUCED BY COMPLIANT UNIVERSITY ADMINISTRATORS CUT FROM THE SAME FINE CLOTH AS SHELDON HACKNEY WHO END UP ARGUING THAT THEY HAVE NO CHOICE BUT TO FOLLOW THE PROCEDURES OVER THE PAST DECADE OBLIGING ADMINISTRATORS BROUGHT THOSE PROCEDURES AND SOLUTIONS INTO BEING IN ORDER TO APPEASE THE GRIEVANCES OF ACTIVIST STUDENTS AND PROFESSORS THE ADMINISTRATORS WROUGHT WHAT THEY NO DOUBT BELIEVED TO BE CONSIDERED RULES AND GUIDELINES FOR THE PUNISHMENT OF OFFENSIVE SPEECH AND THE MAINTENANCE OF CIVILITY AND THE CADRES OF THE POLITICALLY CORRECT RAN WITH THEM EMPOWERED THUS BY ADMINISTRATORS AND IMBUED WITH A CHRONIC SENSE OF VICTIMIZATION THE CAMPUS ACTIVISTS COMMENCED TO DO WHAT ACTIVISTS ARE MOST INTERESTED IN DOING WHICH IS TO ACT CONFRONTED WITH THE RESULTING TIDE OF ABSURD ACCUSATIONS AND PROSECUTIONS OVER INSENSITIVE OR HARASSING LANGUAGE UNIVERSITY ADMINISTRATORS RETREAT AS MR HACKNEY HAS REPEATEDLY DONE INTO RIGHTMINDED MEDITATIONS ON THE IMPORTANCE OF CIVILITY AND FREE EXPRESSION TALK AS THEY SAY IS CHEAP THE SENATORS AT TODAY'S HEARINGS MIGHT BEGIN BY ASKING SOME HARD QUESTIONS ABOUT MR HACKNEY'S RESPONSE TO THE SEIZURE BY A GROUP OF MINORITY ACTIVISTS OF AN ENTIRE PRESS RUN OF THE PENN STUDENT PAPER THE DAILY PENNSYLVANIAN IT WOULD TELL THEM VOLUMES ABOUT THE CANDIDATE'S ABILITY TO ACT IN DEFENSE OF FREE SPEECH AS OPPOSED TO HIS ABILITY TO FORM ELOQUENT MEDITATIONS ON THE SUBJECT MR HACKNEY AND FRIENDS HAVE SPENT CONSIDERABLE TIME IN RECENT WEEKS COMPLAINING THAT CONSERVATIVES HAVE DISTORTED HIS VIEWS AND THAT HE ROUNDLY CONDEMNED THE TAKING OF THE PAPERS WHAT MR HACKNEY IN FACT DID AFTER THE THEFT WAS TO ISSUE A STATEMENT AWASH IN PIOUS EVENHANDEDNESS WHICH REPEATEDLY EXCULPATED THE SEIZURE OF THE PAPERS AS A PROTEST ACTIVITY A NOTE FROM CBS'S MIKE WALLACE PUBLISHED IN OUR LETTERS COLUMN LAST WEEK CHIDES US FOR JUDGING MR HACKNEY BY HIS MISTAKES AND ADDS HE HAS INEVITABLY FUMBLED WHO HASN'T WE WERE DEEPLY MOVED BY MR WALLACE'S SOLICITOUSNESS ON BEHALF OF THOSE WHO MAKE MISTAKES AND WAIT WITH INTEREST TO SEE WHETHER HIS CONCERN FOR FAIRNESS MIGHT ONE DAY BE EXTENDED TO THE PUBLIC FIGURES MERCILESSLY FLAYED AND GARROTED ON 60 MINUTES EVERY WEEK LIKE MR WALLACE OTHER SUPPORTERS OF MR HACKNEY ATTEST AGAIN AND AGAIN TO HIS CIVILITY AND SENSITIVITY THESE ARE STELLAR VIRTUES INDEED BUT PERHAPS THERE IS SOMETHING IN THE AIR BREATHED AROUND UNIVERSITY BUILDINGS THAT DISCONNECTS THEM UTTERLY FROM THE VIRTUES OF COURAGE AND LEADERSHIP MR HACKNEY'S MISHANDLING OF THE WATER BUFFALO AFFAIR AND NEWSPAPER THEFTS IS BAD ENOUGH BUT THE MUCH MORE INSIDIOUS PROBLEM WITH THE SHELDON HACKNEYS OF AMERICAN UNIVERSITY LIFE AND THEIR NUMBER IS LEGION IS THAT INSTEAD OF COURAGE WE MUST LISTEN TO THEIR CASUISTRY ABOUT TOLERANCE INSTEAD OF LEADERSHIP WE MUST BEAR THEIR SILENT COMPLICITY IN THE SUPPRESSION OF HONEST OPINION WE ALL KNOW ABOUT EDEN JACOBOWITZ WE'LL NEVER KNOW HOW MANY PROFESSORS OR STUDENTS GAG WORDS AND OPINIONS DOWN THEIR THROATS NOW LEST SOME 19YEAROLD AUTHORITARIAN CALL OUT THE DISCIPLINARY MACHINERY CHEERLEADING FACULTY AND TV CAMERASWHILE THE SCHOOL'S PRESIDENT DRAWS THE BLINDS TO LET THE PROCEDURES GRIND FORWARD WHEN PENN SCHOLAR MURRAY DOLFMANACCUSED OF A LUDICROUS CHARGE OF RACISM FOR TRYING TO BRING HOME THE SIGNIFICANCE OF THE 13TH AMENDMENTHAD HIS CLASSROOM INVADED BY PROTESTERS PRESIDENT HACKNEY HAD NOT A WORD TO SAY IN DEFENSE OF MR DOLFMAN'S ACADEMIC FREEDOM NOR WAS HE MOVED TO DISCIPLINE THE DISRUPTERS ON THE CONTRARY IT WAS MR DOLFMAN WHOM THE PROCEDURES FORCED TO MAKE A PUBLIC APOLOGY AND TO ATTEND A SENSITIVITY TRAINING CLASS SIMPLY PUT THE QUESTION BEFORE THE SENATORS IS WHETHER A UNIVERSITY PRESIDENT WHO HAS COMPILED SO SORRY A RECORD OF APPEASEMENT IN LINE WITH THE PREVAILING POLITICAL WINDS AS MR HACKNEY HAS SHOULD SIT AT THE HELM OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES DISBURSING HUGE SUMS OF TAXPAYER MONEY IN THE FORM OF GRANTS IMBUING NEH THAT IS WITH THE ETHOS OF THE AMERICAN CAMPUS TODAY IF THE SENATORS HAD ANY REAL CONCERN FOR THE MESSAGE THE CONFIRMATION OF MR HACKNEY WOULD SEND ABOUT UNIVERSITY FREE SPEECH AND THE IMPORTANCE OF CHOOSING LEADERS ACTUALLY WILLING TO DEFEND IT THEY WOULD VOTE NO ON HIS NOMINATION AS IT IS THIS DEMOCRATIC NOMINEE WILL BE VOTED UPON BY DEMOCRATS TED KENNEDY CLAIBORNE PELL HOWARD METZENBAUM CHRIS DODD PAUL SIMON TOM HARKIN BARBARA MIKULSKI JEFF BINGAMAN PAUL WELLSTONE AND HARRIS WOFFORD WE HOPE ALL THOSE SELFGAGGED PROFESSORS WHO THINK THEIR BELIEFS AND INTERESTS ARE TIED TO DEMOCRATIC POLITICS WILL ATTEND TO THE CONTENT AND OUTCOME OF TODAY'S HEARING 9306250086 930625 CHICAGO REIT CALLS RESULTS RIGHT ON TRACK' BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO MANUFACTURED HOME COMMUNITIES INC A REAL ESTATE INVESTMENT TRUST THAT INVESTOR SAM ZELL TOOK PUBLIC EARLIER THIS YEAR CURRENTLY EXPECTS FUNDS FROM OPERATIONS TO BE ABOUT 64 CENTS A SHARE IN THE SECOND QUARTER RIGHT ON TRACK WITH WHERE THE ANALYST COMMUNITY IS EXPECTING RANDALL K ROWE CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW MR ROWE EXPRESSED FRUSTRATION WITH RECENT COVERAGE OF THE COMPANY WHICH HE SAYS HAS FOCUSED ON ITS EXPOSURE TO INTEREST RATE UPTURNS BUT UNDERPLAYED A STRATEGY THAT MANUFACTURED HOME HAS IN PLACE TO PROTECT IT FROM ANY BIG UPWARD SURGE IN RATES REVIEWING THE REIT'S FIRST FULL QUARTER AS A PUBLIC COMPANY MR ROWE RESTRICTED HIS COMMENTS TO PROJECTIONS OF MANUFACTURED HOME'S FUNDS FROM OPERATIONS OR FFO A REIT INDUSTRY YARDSTICK HE CALLS THE BEST MEASURE OF A REIT'S CASH FLOWPRODUCING CAPABILITY FFO IS SIMILAR IN A SENSE TO THE MEASURE KNOWN AS EBITDA OR EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION IT IS DERIVED BY ADDING BACK TO NET INCOME THE DEPRECIATION AND AMORTIZATION OF THE REIT'S PROPERTIES IN THE FIRST QUARTER FOR EXAMPLE MANUFACTURED HOME REPORTED NET INCOME OF 33 MILLION OR 44 CENTS A SHARE ON REVENUE OF 94 MILLION FFO FOR THE QUARTER WAS 62 CENTS A SHARE THE GENERAL FEELING IN THE MARKETPLACE MR ROWE SAID IS THAT THE COMPANY'S FFO FOR ALL OF 1993 WILL BE ABOUT 260 A SHARE THE RESULTS TO DATE ARE SUCH THAT WE ARE ON TRACK TO ACHIEVE THAT PERFORMANCE FOR THE FULL YEAR HE SAID THE 260 FIGURE MARKS AN INCREASE FROM THE 246 A SHARE MANUFACTURED HOME PROJECTED IN THE PROSPECTUS MATERIALS FOR ITS INITIAL OFFERING MR ROWE NOTED THAT THE CALCULATIONS IN THE PROSPECTUS DIDN'T INCLUDE RENT INCREASES THE COMPANY HAS IMPOSED OR ACQUISITIONS IT HAS MADE SINCE THE OFFERING IN THAT 2575ASHARE MARCH SALE OF A 64 STAKE THE COMPANY RAISED ABOUT 130 MILLION AND USED A PORTION OF THE PROCEEDS TO RETIRE ABOUT 791 MILLION OF DEBT SOME OF THE REST IS EXPECTED TO BE USED IN ACQUIRING MORE PROPERTIES MR ZELL HAD BEEN THE LARGEST INVESTOR IN THE PREDECESSOR PARTNERSHIPS WHOSE HOLDINGS NOW COMPRISE THE REIT'S PORTFOLIO MESSRS ZELL AND ROWE JOINTLY SERVE AS THE COMPANY'S COCHAIRMEN MR ROWE ALSO ADDRESSED THE ISSUE OF THE COMPANY'S FLOATINGRATE LOAN MANUFACTURED HOME HAS A 100 MILLION LINE OF CREDIT WHOSE RATE MOVES UP OR DOWN WITH THE LONDON INTERBANK OFFERED RATE TYPICALLY SUCH A LOAN ARRANGEMENT ENTERED INTO AT A TIME OF RELATIVELY LOW RATES COULD SWIFTLY PUT THE COMPANY'S EARNINGS UNDER PRESSURE IF RATES MOVED HIGHER MR ROWE NOTED HOWEVER THAT WE ALSO BOUGHT A FIVEYEAR LIBOR CAP TO LIMIT ITS EXPOSURE OUR MAXIMUM INTEREST RATE CAN ONLY REACH 705 UNDER THE FACILITY MR ROWE SAID CURRENTLY THE COMPANY IS PAYING 425 ON THE DEBT 9306250085 930625 BUSINESS BRIEF DEPOSIT GUARANTY CORP CUT IN LOAN LOSS RESERVES TO BOOST PROFIT BY 7 MILLION DEPOSIT GUARANTY CORP A JACKSON MISS BANK HOLDING COMPANY EXPECTS TO GIVE A BIG BOOST TO ITS REPORTED NET INCOME FOR THE SECOND QUARTER BY CUTTING ITS LOANLOSS RESERVES BY 11 MILLION THAT MOVE WILL RESULT IN MORE THAN 7 MILLION ADDED TO NET INCOME ACCORDING TO ARLEN MCDONALD CHIEF FINANCIAL OFFICER THE ADJUSTMENT WILL BE RECORDED AT THE COMPANY'S SUBSIDIARY IN SHREVEPORT LA AND IS THE RESULT OF IMPROVEMENT IN CREDIT QUALITY AND IN THE LOCAL ECONOMY THE COMPANY SAID IN THE 1992 SECOND QUARTER THE COMPANY POSTED NET INCOME OF 111 MILLION THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY DEPOSIT GUARANTY SHARES SLIPPED 50 CENTS TO 27 9306250084 930625 HOUSE VOTES TO TERMINATE SUPERCOLLIDER MEMBERS LED BY FRESHMEN FOCUSED ON THE DEFICIT REJECT COSTLY PROJECTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE LED BY DEFICITCONSCIOUS FRESHMEN VOTED OVERWHELMINGLY TO TERMINATE THE SUPERCONDUCTING SUPERCOLLIDER IN TEXAS AND TWO OTHER COSTLY ENERGY DEPARTMENT RESEARCH PROJECTS THE GIANT ATOM SMASHER HAS SUFFERED SETBACKS BEFORE IN THE HOUSE BUT THE 280150 VOTE AGAINST IT YESTERDAY WAS FAR MORE DECISIVE THAN ANY BEFORE AND WILL MAKE IT THAT MUCH MORE DIFFICULT FOR ALLIES TO SAVE THE PROJECT AGAIN IN THE SENATE BESIDES REJECTING THE COLLIDER LAWMAKERS KILLED FUNDING FOR THE SPACE REACTOR AND ADVANCED LIQUID METAL REACTOR PROGRAMS IN AN EXTRAORDINARY SERIES OF VOTES THE THREE PROJECTS HAVE ALREADY COST WASHINGTON BILLIONS OF DOLLARS AND THE INVESTMENT IN THE COLLIDER ALONE IS CLOSE TO 17 BILLION IN FEDERAL FUNDS THE HUGE MARGINS OF MORE THAN 100 VOTES IN EACH CASE DRAMATIZED AN IMMENSE GAP BETWEEN NEW RANKANDFILE MEMBERS AND THE OLDER LEADERSHIP VICE PRESIDENT AL GORE PERSONALLY LOBBIED MEMBERS AND MAJORITY LEADER RICHARD GEPHARDT D MO CLOSED DEBATE WITH A STRONG DEFENSE OF THE MULTIBILLIONDOLLAR COLLIDER YET DESPITE THESE APPEALS DEMOCRATS VOTED BY AN ALMOST 21 MARGIN AGAINST THE WHITE HOUSE POSITION PRESIDENT CLINTON SAID LATER THAT HE STILL SUPPORTED THE PROJECT AND THAT IT'S REALLY UP TO THE SENATE NOW TO DECIDE ON THE SUPERCOLLIDER BUT PRIVATELY WHITE HOUSE OFFICIALS CONCEDE THAT THE POLITICAL CLIMATE IS FAR MORE DIFFICULT THAN A YEAR AGO COMING OFF WEDNESDAY'S DEBATE IN WHICH THE SPACE STATION BARELY SURVIVED YESTERDAY'S VOTES DRAMATIZED THE PRESSURE ON LAWMAKERS TO MAKE HIGHPROFILE BUDGET CUTS AND PROVE THEIR FRUGALITY TO VOTERS AT HOME FRESHMEN WHO ACCOUNT FOR MORE THAN A QUARTER OF THE VOTING MEMBERS SET THE TONE BEHIND THEM A COALITION OF TAXPAYER AND ENVIRONMENTAL ORGANIZATIONS HAVE WORKED TO PROMOTE A GREEN SCISSORS AGENDA AIMED AT CUTTING LARGE PUBLIC WORKS PROJECTS FOR EXAMPLE THE ATTACK ON THE LIQUID METAL REACTOR MATCHED REP SAM COPPERSMITH A DEMOCRATIC NEWCOMER FROM ARIZONA AGAINST PUBLIC WORKS COMMITTEE CHAIRMAN NORMAN MINETA WHOSE SAN JOSE CALIF DISTRICT IS HOME TO GENERAL ELECTRIC CO'S NUCLEAR DIVISION THE PROJECT'S CHIEF CONTRACTOR REPUBLICAN AND DEMOCRATIC LEADERS JOINED IN SUPPORTING THE PUBLIC WORKS AND APPROPRIATIONS COMMITTEES' HIERARCHY YET A MAJORITY OF FRESHMEN VOTED WITH MR COPPERSMITH WHO BUILT HIS 267162 VICTORY ON HUGE 71 MARGINS AMONG HIS OWN DEMOCRATIC CLASS THE SPACE REACTOR FELL ON A 33398 ROLL CALL AND THOUGH PROPONENTS OF THE COLLIDER PROJECT INCLUDING WESTINGHOUSE ELECTRIC CORP ONE THE CONTRACTORS BROUGHT IN NEW POLITICAL MUSCLE THIS YEAR THEIR LOSING MARGIN WAS MORE THAN TWICE THAT OF A YEAR EARLIER I AM NOT SURE WE ARE ANY MORE A CONGRESS WE HAVE BECOME SIMPLY LUDDITES LAMENTED REP ROBERT WALKER A REPUBLICAN WHIP AND LEADING MEMBER OF THE HOUSE SCIENCE COMMITTEE YET AFTER BACKING THE COLLIDER IN THE PAST THE PENNSYLVANIA CONSERVATIVE HIMSELF TURNED AGAINST THE ATOM SMASHER WHICH SUFFERS IN COMPETITION WITH THE MORE COSTLY BUT MORE GLAMOROUS SPACE STATION TEXAS HAS A COMMON STAKE IN BOTH GOVERNMENT INVESTMENTS AND THE RIVALRY BETWEEN THEM HAS BEGUN TO STRAIN LAWMAKERS FROM THAT STATE IN AN ALMOST SINGLEMINDED FASHION HOUSE JUDICIARY CHAIRMAN JACK BROOKS WORKED HARD TO SAVE THE SPACE STATION THIS WEEK BUT YESTERDAY IT FELL TO REP MARTIN FROST A SENIOR MEMBER OF THE RULES COMMITTEE TO HELP CARRY THE CAMPAIGN FOR THE COLLIDER WHICH MORE DIRECTLY AFFECTS HIS DISTRICT IN TOTAL THE AMENDMENTS YESTERDAY STRIPPED MORE THAN 460 MILLION FROM THE ENERGY DEPARTMENT BUDGET FOR THE FISCAL YEAR BEGINNING OCT 1 THE PRESSURE FOR CUTS CAN WORK AT ODDS WITH THE ADMINISTRATION'S EFFORTS TO REDIRECT BILLIONS OF DOLLARS TO FULFILL THE PRESIDENT'S INVESTMENT INITIATIVES THE FLOOR ACTION CAME EVEN AS THE HOUSE APPROPRIATIONS COMMITTEE WAS APPROVING NEW BUDGETS FOR SEVEN MAJOR DEPARTMENTS WHILE THE ADMINISTRATION IS MAKING ITS PRIORITIES FELT THE DOLLAR INCREASES ARE OFTEN JUST A QUARTER TO A HALF OF WHAT IT REQUESTED FOR EXAMPLE THE PANEL APPROVED NEARLY 325 BILLION FOR THE COMMERCE DEPARTMENT INCLUDING SIGNIFICANT INCREASES FOR SCIENCE AND INDUSTRIAL TECHNOLOGY PROGRAMS BUT THE TOTAL INCREASE IS ONLY ABOUT A THIRD OF WHAT MR CLINTON REQUESTED MOREOVER LAWMAKERS SOUGHT TO PROTECT THEIR OWN INTERESTS INCLUDING NEARLY 29 MILLION FOR ASSORTED WEATHER AND MARINE RESEARCH PROJECTS NOT BACKED BY THE PRESIDENT BY A 2621 MARGIN THE COMMITTEE AGREED TO PRESERVE 875 MILLION FOR RADIO MARTI BROADCASTS TO CUBA BUT IN WHAT WOULD HAVE BEEN HERESY JUST MONTHS AGO FLORIDA LAWMAKERS AGREED TO SACRIFICE TELEVISION BROADCASTS AND EVEN CUT INTO A PROGRAM TO ENCOURAGE DEMOCRACY OVERSEAS TO FIND THE RADIO MONEY SIMILARLY THE HOUSE PANEL APPROVED A NATURAL RESOURCE BILL PROVIDING NEARLY 134 BILLION INCLUDING A 21 INCREASE FOR ENERGY CONSERVATION PROGRAMS BUT THE MEASURE PROMISES ONLY ABOUT A THIRD OF THE INCREASE SOUGHT BY THE ADMINISTRATION FOR THE NATIONAL PARK SERVICE GRAZING FEES CHARGED TO RANCHERS ON FEDERAL LANDS WOULD BE INCREASED 33 AS PART OF THE SAME MEASURE WHICH INCLUDES NEW RESTRICTIONS BARRING THE EXPORT OF UNPROCESSED HARDWOOD TIMBER FROM FEDERAL FORESTS IN TEXAS AS EXPECTED THE HOUSE COMMITTEE ALSO APPROVED A MODEST RELAXATION OF MEDICAID RESTRICTIONS TO PERMIT FUNDING FOR ABORTIONS FOR POOR WOMEN WHO ARE VICTIMS OF RAPE OR INCEST ABORTIONRIGHTS ADVOCATES FAILED ON A 2718 VOTE TO WIN A GREATER LIBERALIZATION OF THE CURRENT LAW BUT THE ISSUE IS EXPECTED TO REMAIN UNRESOLVED AT LEAST UNTIL THE PRESIDENT CLARIFIES WHAT COMPROMISE HE WILL FIND ACCEPTABLE 9306250083 930625 LETTERS TO THE EDITOR TOXIC CLAIMS PORTEND A TIDAL WAVE OF TORTS IN YOUR MAY 12 LAW COLUMN CLAIMS INCREASE FOR NOINJURY MEDICAL TESTING MEDICAL MONITORING DAMAGES WERE HAILED AS A POTENTIAL WAVE OF FUTURE TOXIC TORT CLAIMS THESE CLAIMS HOWEVER DEMONSTRATE ONE OF THE WAYS IN WHICH PLAINTIFFS' LAWYERS PREY ON THE MOST CURRENT VOGUE SOCIAL ILLS YOU NOTE THAT ONE OF THE REASONS FOR PROLIFERATION OF MEDICAL MONITORING CLAIMS IS THE FACT THAT MANY PEOPLE DON'T HAVE MEDICAL INSURANCE MEDICAL MONITORING DAMAGES ARE NOT DESIGNED TO PROVIDE FREE HEALTH CARE TO ANYONE CLAIMING EXPOSURE TO A TOXIC SUBSTANCE THAT MAY FALL UNDER THE AUSPICES OF HILLARY RODHAM CLINTON'S HEALTH CARE PROPOSAL BUT CERTAINLY NOT UNDER THE JURISDICTION OF THE AMERICAN JURISPRUDENTIAL SYSTEM RATHER TORT LAW IS DESIGNED TO COMPENSATE VICTIMS WHO CAN PROVE THAT THEY HAVE SUSTAINED AN ACTUAL INJURY AND THAT THE INJURY SUSTAINED WAS CAUSED BY THE DEFENDANT'S NEGLIGENCE THE ELEMENT OF CAUSATION IS THE OTHER MISSING LINK IN MEDICAL MONITORING CLAIMS YOUR ARTICLE QUOTES A NOTED PLAINTIFFS' ATTORNEY STANLEY M CHESLEY AS STATING THAT THROUGH MEDICAL EXAMINATIONS DOCTORS HAVE FOUND UNDETECTED CANCER AND LIVES HAVE BEEN SAVED UNFORTUNATELY MANY PEOPLE DEVELOP CANCER BUT THERE IS VERY LITTLE IF ANY EVIDENCE THAT CANCER DETECTED AS A RESULT OF MEDICAL MONITORING IS RELATED TO A DEFENDANT'S TORTIOUS CONDUCT MEDICAL MONITORING DAMAGES ARE NOT A WAVE OF RELIEF THEY ARE A TIDAL WAVE OF TROUBLE THE EXPLOSION OF MEDICAL MONITORING AWARDS WILL SURELY LEAD TO AN EXPONENTIAL INCREASE IN LITIGATION COSTS BORNE BY EVERY COMPANY WITH EMPLOYEES WHOSE JOBS PUT THEM IN PROXIMITY TO TOXIC SUBSTANCES OR WITH FACILITIES OR DISPOSAL SITES IN PROXIMITY TO POPULATED AREAS DEFENDANTS WOULD DO WELL TO FIGHT MEDICAL MONITORING CLAIMS TO THE FULLEST EXTENT POSSIBLE AS THIS AREA OF JURISPRUDENCE IS STILL IN ITS EMBRYONIC STAGE AND HAS THE POTENTIAL TO GREATLY AND ADVERSELY INCREASE THE FINANCIAL BURDEN ATTENDANT TO ALL TOXIC TORT CASES 9306250082 930625 BUSINESS BRIEF GENERAL SIGNAL CORP SHARES IN ELECTROGLAS UNIT ARE PRICED AT 16 APIECE GENERAL SIGNAL CORP SAID AN INITIAL PUBLIC OFFERING OF 62 MILLION COMMON SHARES OF ITS ELECTROGLAS INC UNIT WAS PRICED AT 16 A SHARE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS ELECTROGLAS A SEMICONDUCTOR CONCERN WILL TRADE OVERTHECOUNTER GENERAL SIGNAL WHICH MAKES INSTRUMENTS AND CONTROLS FOR ELECTRICAL AND TECHNOLOGY INDUSTRIES SAID IT WOULD USE THE ESTIMATED 992 MILLION IN NET PROCEEDS TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES GENERAL SIGNAL HAD DELAYED THE OFFERING FOR ONE MONTH CITING IMPROVING TRENDS IN THE SEMICONDUCTOR MARKET ORIGINALLY THE COMPANY HAD SOUGHT 13 TO 15 A SHARE FOR ELECTROGLAS SANTA CLARA CALIF AFTER DELAYING THE OFFERING GENERAL SIGNAL SAID IT EXPECTED THE SHARES TO BE OFFERED AT 16 TO 18 EACH THE SHARES WERE PRICED AFTER THE CLOSE OF TRADING 9306250081 930625 ECONOMY FDIC CUTS FORECAST FOR BANK FAILURES SUGGESTING PREMIUMS MAY FALL SOONER BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP SHARPLY LOWERED ITS PROJECTIONS FOR BANK FAILURES THIS YEAR AND NEXT SUGGESTING THAT BANKS WILL WIN A REDUCTION IN THEIR DEPOSIT INSURANCE PREMIUMS MORE QUICKLY THAN EXPECTED THE AGENCY ESTIMATED THAT COMMERCIAL AND SAVINGS BANKS WHOSE COLLECTIVE ASSETS TOTAL 10 BILLION WILL FAIL THIS YEAR THE AGENCY REFUSED TO RELEASE OFFICIAL ESTIMATES OF HOW MANY BANKS WILL FAIL BUT OFFICIALS SAID THEY EXPECT BETWEEN 40 AND 70 THIS IS THE SECOND TIME THE AGENCY HAS LOWERED ITS FAILURE PROJECTIONS FOR 1993 LATE LAST YEAR IT ESTIMATED THAT 120 BANKS WITH ASSETS TOTALING 76 BILLION WOULD FAIL IN MARCH IT SAID 70 TO 90 BANKS WITH ASSETS OF 25 BILLION WOULD FAIL THE SLOWDOWN IN BANK FAILURES MEANS THAT THE NEARLYDEPLETED BANK DEPOSIT INSURANCE FUND WILL GROW FASTER THAN ANTICIPATED THAT IN TURN WILL ACCELERATE THE DAY THE FDIC CAN LOWER THE PREMIUMS BANKS PAY INTO THE FUND UNDER A 1991 LAW THE FDIC CAN'T SUBSTANTIALLY LOWER THE AVERAGE PREMIUM BANKS PAY INTO THE FUND CURRENTLY 25 CENTS PER 100 IN DOMESTIC DEPOSITS UNTIL THE FUND CONTAINS 125 FOR EVERY 100 IN DEPOSITS IT CURRENTLY CONTAINS SIX CENTS FOR EACH 100 OF DEPOSITS FDIC OFFICIALS HAD PROJECTED IN MARCH THAT THE FUND WOULDN'T HIT THE 125 LEVEL UNTIL 2002 BUT THEY NOW ESTIMATE IT WILL DO SO BETWEEN 1996 AND 1998 AS OF WEDNESDAY 22 BANKS WITH 27 BILLION IN ASSETS HAD FAILED THIS YEAR IN THE COMPARABLE PERIOD LAST YEAR 61 BANKS WITH ASSETS OF 199 BILLION HAD FAILED IN 1992 AS A WHOLE 122 BANKS WITH ASSETS OF 442 BILLION FAILED THE AGENCY PROJECTED THAT BANKS WITH ASSETS OF 20 BILLION WILL FAIL NEXT YEAR THE NEW LOWER FIGURE IS BASED ON ESTIMATES OF 50 TO 70 BANK FAILURES NEXT YEAR HOWEVER ONE OFFICIAL CONCEDED THAT THE FDIC ESTIMATE IS BASED PARTLY ON AN OUTMODED ECONOMIC MODEL THAT TENDS TO OVERSTATE FAILURES THE PRIMARY REASON FOR THE LOWER FAILURE PROJECTIONS IS THAT PROFIT CAPITAL AND LOANLOSS RESERVES ARE ALL RISING BUT THE LOWER PROJECTIONS ALSO REFLECT THE FACT THAT BANKS AREN'T MAKING MANY LOANS AS LOAN VOLUME SHRINKS SO DOES THE RISK OF LOSSES AND BANK FAILURES FROM BAD LOANS SEPARATELY BT REALTY RESOURCES INC A UNIT OF BANKERS TRUST NEW YORK CORP SAID THAT THE FDIC CHOSE IT TO MARKET ABOUT 375 MILLION OF NONPERFORMING COMMERCIAL MORTGAGES THE COMPANY SAID IT WILL SEEK BIDS ON THE MORTGAGES IN THE EARLY FALL FOR THE FIRST TIME THE FDIC WILL HELP BUYERS FINANCE PURCHASES OF THE LOANS 9306250080 930625 SUN MICROSYSTEMS PLANS BUYBACK MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID IT PLANS TO BEGIN A STOCK REPURCHASE PROGRAM FOR AS MANY AS 10 MILLION SHARES OR ABOUT 95 OF ITS COMMON STOCK OUTSTANDING ON THE OPEN MARKET UNDER THE PROGRAM SHARE PURCHASES WILL BE FUNDED FROM WORKING CAPITAL AS OF MARCH 28 SUN HAD ABOUT 1058 MILLION SHARES OUTSTANDING SUN SHARES CLOSED YESTERDAY AT 28625 UP 125 IN NATIONAL OVERTHECOUNTER TRADING THE MAKER OF COMPUTER WORKSTATIONS AND NETWORKS HAS COMPLETED A SIMILAR PROGRAM LAUNCHED LAST YEAR TO BUY BACK 75 MILLION SHARES 9306250079 930625 ECONOMY TRADE MINISTERS REMAIN DIVIDED AT TOKYO TALKS AS DEADLINE APPROACHES NO ACCORD IS IN SIGHT ON TARIFFS AND ACCESS BY WALL STREET JOURNAL REPORTERS DAVID P HAMILTON AND JOHN BUSSEY IN TOKYO AND BOB DAVIS IN WASHINGTON WITH A SELFIMPOSED DEADLINE LESS THAN TWO WEEKS AWAY TRADE MINISTERS FROM THE US EUROPE CANADA AND JAPAN FAILED TO REACH AGREEMENT ON THE TARIFF AND MARKETACCESS ISSUES THAT DEEPLY DIVIDE THEM CASTING DOUBT ON THEIR ABILITY TO GIVE A LIFT TO THE WORLD TRADE TALKS FOLLOWING AN UNSUCCESSFUL TWODAY MEETING IN TOKYO NEGOTIATORS FROM THE COUNTRIES WILL CONTINUE MEETING UNTIL JULY 6 WHEN THE TRADE MINISTERS ARE TO REGROUP TO APPROVE A FINAL REPORT FOR THE JULY 7 SUMMIT IN TOKYO OF THE HEADS OF THE SEVEN MAJOR INDUSTRIAL NATIONS WE HAVE MADE PROGRESS BUT THERE IS STILL CONSIDERABLE WORK TO BE DONE SAID SIR LEON BRITTAN LEADER OF THE EUROPEAN DELEGATION MR BRITTAN AND OTHER NEGOTIATORS HAVE SAID THEY WANT TO REACH A DEAL ON TARIFFS AND MARKET OPENINGS AT THE SUMMIT IN ORDER TO JUMPSTART THE GLOBAL TRADE TALKS BEING CONDUCTED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FAILURE TO REACH A DEAL SAID FORMER US NEGOTIATOR JULIUS KATZ WOULD BE A BIG SETBACK POLITICALLY FOR ALL OF THE TRADING PARTNERS MOMENTUM IS IMPORTANT MR KATZ SAID IF YOU HIT A ROADBLOCK IT SLOWS EVERYTHING DOWN IT CALLS INTO QUESTION YOUR ABILITY TO SUCCEED PRESIDENT CLINTON HAS SAID HE WANTS TO CONCLUDE THE GATT NEGOTIATIONS WHICH HAVE HOVERED NEAR DEATH FOR SEVEN YEARS BY CHRISTMAS US OFFICIALS WILL ALSO BE NEGOTIATING WITH JAPAN OVER THE WEEKEND ON CRAFTING A FRAMEWORK OF POLICIES AIMED AT REDUCING JAPAN'S TRADE SURPLUS WITH THE US SOME OFFICIALS HAD HOPED TO WRAP UP THE TALKS BY MONDAY BUT US TRADE REPRESENTATIVE MICKEY KANTOR TOLD REPORTERS THAT COULD BE DIFFICULT THE TALKS GO RIGHT TO THE HEART OF THE USJAPAN ECONOMIC RELATIONSHIP MR KANTOR SAID HE ADDED THAT HE STILL EXPECTS THE TWO NATIONS TO REACH A BASIC AGREEMENT BY THE TIME PRESIDENT CLINTON AND JAPAN'S PRIME MINISTER KIICHI MIYAZAWA MEET IN TOKYO JULY 6 IN THE GATT NEGOTIATIONS THE MAJOR COUNTRIES MUST HAMMER OUT AGREEMENTS ON A VARIETY OF CONTENTIOUS ISSUES MOST OF WHICH TOUCH A POLITICAL NERVE IN ONE OR MORE OF THE TRADING PARTNERS EUROPE HAS LONG COMPLAINED ABOUT THE US TEXTILE MARKET WHICH IS PROTECTED BY HIGH TARIFFS AND A POWERFUL LOBBY THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE FOR INSTANCE SAID THE EUROPEAN COMMUNITY PROPOSED IN TOKYO TO ELIMINATE TARIFFS ON CERTAIN WOOL RAYON AND COTTON FIBERS AND CUT BY 50 TARIFFS ON WOOL SUITS AND OTHER GARMENTS IN EXCHANGE SAID CARLOS MOORE THE TEXTILE INSTITUTE'S EXECUTIVE VICE PRESIDENT EUROPE WOULD AGREE TO CUT ELECTRONICS TARIFFS HE CALLED SUCH A DEAL LUDICROUS AND AN ATTEMPT TO SHIFT BLAME FOR THE FAILURE OF THE TALKS ONTO THE US THE US MEANWHILE IS UNHAPPY WITH HIGH EUROPEAN TARIFFS ON SEMICONDUCTORS AND WITH REGULATIONS THAT LIMIT THE SHOWING OF FOREIGN FILMS AND TELEVISION PROGRAMS US OFFICIALS SAID THE EC WAS TRYING TO LIMIT THE IMPACT OF A TARIFF AND MARKETOPENING DEAL ON FRANCE WHICH WANTS TO PROTECT ITS ALUMINUM ELECTRONICS AND FILM INDUSTRIES IF THE EC SUCCEEDS FRANCE MIGHT DROP ITS THREAT TO SCUTTLE A GATT DEAL OVER SEPARATE AGRICULTURAL ISSUES FOR ITS PART JAPAN CONTINUES TO CLING TO HIGH TARIFFS THAT SHELTER WEAK INDUSTRIES IN WOOD PRODUCTS AND DISTILLED SPIRITS THE LUMBER INDUSTRY IS A BIG SOURCE OF FUNDS FOR THE LIBERAL DEMOCRATIC PARTY A SENIOR US OFFICIAL SAID THE SUMMIT ANNOUNCEMENT ON A GATT DEAL WOULD HAVE TO OVERCOME A LOT OF SKEPTICISM ABOUT THE FUTURE OF THE GATT TALKS BUT JEFFREY SCHOTT A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON SAID THAT FAILURE TO ARRIVE AT A DEAL WOULD ONLY DEEPEN THE CYNICISM THAT PERVADES THE GATT TALKS IT WOULD ADD TO THE STRING OF FAILURES BY THE SEVEN INDUSTRIAL POWERS TO PUT THEIR MONEY WHERE THEIR MOUTHS ARE HE SAID FOR THEIR PART THE TRADE MINISTERS EMPHASIZED WHAT THEY HAD ACCOMPLISHED RATHER THAN WHAT REMAINED TO BE DONE THE SENIOR US OFFICIAL SAID THE GROUP REACHED SOME AGREEMENT IN THE AREAS OF PHARMACEUTICALS CHEMICALS MEDICAL EQUIPMENT AND CONSTRUCTION EQUIPMENT HE DIDN'T GIVE DETAILS THE USJAPAN FRAMEWORK TALKS MEANWHILE ARE EXPECTED TO RESUME SUNDAY THE NEW SET OF POLICIES ARE MEANT TO REPLACE THE BUSH ADMINISTRATION'S STRUCTURAL IMPEDIMENTS INITIATIVE AND ARE AN ATTEMPT TO FOCUS ON BOTH THE MACROECONOMIC AND SECTORAL CAUSES OF JAPAN'S TRADE SURPLUS 9306250078 930625 YOUR MONEY MATTERS WEEKEND REPORT WHY IT PAYS TO REBALANCE' YOUR PORTFOLIO BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL DON'T LOSE YOUR BALANCE SMART INVESTORS KNOW THE IMPORTANCE OF DIVIDING THEIR PORTFOLIOS AMONG STOCKS BONDS AND CASH EQUIVALENTS SUCH AS MONEYMARKET FUNDS BUT WHAT HAPPENS WHEN ONE TYPE OF INVESTMENT TAKES OFF BECOMING A MUCH LARGER PART OF YOUR PORTFOLIO THAN YOU EVER INTENDED YOU MIGHT FOR INSTANCE HAVE EARMARKED 60 OF YOUR PORTFOLIO FOR STOCKS 30 FOR BONDS AND 10 FOR MONEY FUNDS BUT AFTER A LONG STOCK MARKET RALLY YOUR STOCK EXPOSURE MIGHT HAVE BALLOONED TO 75 LEAVING YOU FAR MORE EXPOSED TO A MARKET DECLINE A 20 DROP IN STOCK PRICES WOULD SHAVE ONLY 12 OFF A PORTFOLIO WITH 60 STOCKS BUT IT WOULD KNOCK 15 OFF THE VALUE OF A PORTFOLIO THAT WAS 75 IN STOCKS TO MAKE SURE YOUR PORTFOLIO HASN'T GOTTEN OUT OF WHACK FINANCIAL ADVISERS SAY YOU SHOULD CHECK THE PERCENTAGES REGULARLY AND REBALANCE THE PORTFOLIO BY ADDING TO POSITIONS THAT HAVE LAGGED WHILE TRIMMING HOLDINGS THAT HAVE DONE WELL REBALANCING KEEPS THE ASSET ALLOCATION UNDER CONTROL SAYS TONY BAKER A VICE PRESIDENT WITH SEI CORP IT ALLEVIATES THE RISK THAT YOU'LL BE OFF YOUR TARGETS WHEN SOMETHING BAD HAPPENS IN THE MARKET WITH THE STOCK MARKET UP MORE THAN 50 SINCE THE OCTOBER 1990 MARKET LOW NOW MAY BE A PARTICULARLY GOOD TIME TO CHECK ON HOW YOUR MONEY IS DIVVIED UP IF IT'S NOT SOMETHING YOU'VE LOOKED AT IN A COUPLE OF YEARS THERE'S A GOOD CHANCE THAT EQUITIES ARE NOW A MUCH BIGGER PORTION SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER HOW OFTEN YOU REBALANCE SHOULD DEPEND IN PART ON HOW MUCH IT WILL COST YOU IN TAXES COMMISSIONS AND OTHER TRADING COSTS THE HIGHER YOUR TRANSACTION COSTS THE LESS OFTEN YOU SHOULD REBALANCE SAYS MR BAKER OF SEI INVESTORS WHO BUY NOLOAD MUTUAL FUNDS IN AN INDIVIDUAL RETIREMENT ACCOUNT CAN AFFORD TO REBALANCE FAIRLY OFTEN BECAUSE THEY WILL INCUR LITTLE OR NO COST ON THE OTHER HAND IF YOU USE A FULLSERVICE BROKER TO TRADE INDIVIDUAL STOCKS IN A TAXABLE ACCOUNT YOU SHOULD PROBABLY KEEP YOUR REBALANCING TO THE BARE MINIMUM BECAUSE OF THE HEFTY EXPENSE INVOLVED THOSE FACING STEEP TRANSACTION COSTS MAY WANT TO CONSIDER REBALANCING STRATEGIES THAT DON'T INVOLVE SELLING SAYS STEVEN SOMES A VICE PRESIDENT WITH STATE STREET RESEARCH & MANAGEMENT CO IF YOU OWN MUTUAL FUNDS YOU COULD TAKE YOUR DIVIDENDS IN CASH AND THEN REINVEST THE MONEY IN THE FUNDS WHERE YOU'RE CURRENTLY UNDERINVESTED ALTERNATIVELY YOU CAN REBALANCE YOUR PORTFOLIO BY DIRECTING YOUR REGULAR MONTHLY OR QUARTERLY INVESTMENT INTO THOSE SECURITIES THAT HAVE LAGGED WILLIAM JOHN MIKUS A MANAGING DIRECTOR OF FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER SUGGESTS THAT INVESTORS REBALANCE EVERY QUARTER OR EVERY YEAR THE TIME PERIOD IS NOT NEARLY AS IMPORTANT AS THE DISCIPLINE SAYS MR MIKUS SEI'S MR BAKER PREFERS A DIFFERENT STRATEGY HE ADVISES REBALANCING IF YOUR STOCK EXPOSURE GROWS FROM SAY A TARGET 60 OF YOUR PORTFOLIO TO 63 OR SHRINKS FROM 60 TO 57 WITH A THREE PERCENTAGE POINT MOVE AS YOUR TRIGGER YOU'D EXPECT TO TRANSACT TWICE A YEAR ON AVERAGE HE SAYS INVESTORS WHO FACE HIGHER TRADING COSTS MAY WANT TO WAIT FOR A FIVE PERCENTAGE POINT MOVE ADDS MR BAKER WHILE REBALANCING AMONG STOCKS BONDS AND MONEY MARKET INSTRUMENTS WILL HELP TO CONTROL YOUR PORTFOLIO'S RISK LEVEL IT ISN'T LIKELY TO BOOST YOUR RETURNS INDEED IF YOU WANT TO BOOST RETURNS YOU SHOULDN'T REBALANCE AT ALL JUST LET THE STOCK PORTION OF YOUR PORTFOLIO GROW UNCHECKED OVER TIME STOCKS SHOULD BE THE BEST PERFORMING PART OF YOUR PORTFOLIO THE QUESTION OF REBALANCING IS NOT A PERFORMANCE ISSUE IT'S A RISKCONTROL ISSUE SAYS MR MIKUS BUT THERE'S ANOTHER KIND OF REBALANCING THAT CAN BOTH LOWER RISK AND INCREASE YOUR POTENTIAL RETURNS REBALANCING WITHIN A PARTICULAR ASSET CLASS YOU MIGHT FOR INSTANCE OWN THREE STOCK MUTUAL FUNDS A SMALLCOMPANY STOCK FUND A LARGECOMPANY STOCK FUND AND AN INTERNATIONAL FUND EACH OF WHICH ACCOUNTS FOR A THIRD OF YOUR STOCK PORTFOLIO IF ONE FUND HAS DONE PARTICULARLY POORLY BECAUSE ITS PART OF THE STOCK MARKET HAS BEEN OUT OF FAVOR YOU MAY WANT TO ADD TO THAT FUND AND SELL PART OF YOUR HOLDINGS OF THE OTHER TWO FUNDS IF ON THE OTHER HAND THE FUND HAS DONE BADLY BECAUSE THE FUND'S MANAGER IS INCOMPETENT YOU PROBABLY WANT TO SELL THE FUND AND BUY A BETTER PERFORMER WITH A COMPARABLE STRATEGY THE IDEA IS THAT BY REGULARLY TRIMMING YOUR STAKE IN MARKET SEGMENTS THAT ARE SPARKLING AND ADDING TO THOSE THAT ARE SUFFERING YOU WILL TEND TO SELL SECURITIES THAT ARE AT THE PEAK OF THEIR POPULARITY AND BUY THOSE THAT ARE ABOUT TO BOUNCE BACK FOR THIS SORT OF REBALANCING TO ADD TO YOUR RETURNS YOUR DIFFERENT STOCK FUNDS HAVE TO GENERATE SIMILAR LONGRUN PERFORMANCE EVEN IF THEIR RESULTS DIVERGE SHARPLY OVER THE SHORT TERM IN PRACTICE IT HASN'T QUITE WORKED OUT THAT WAY SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER HE LOOKED AT THE RETURNS FOR THE 196092 PERIOD FOR A PORTFOLIO COMPRISED OF EQUAL INVESTMENTS IN SMALLCOMPANY STOCKS LARGECOMPANY STOCKS AND FOREIGN STOCKS HE FOUND THAT IF YOUR AIM WAS THE HIGHEST POSSIBLE RETURN YOU WOULD HAVE BEEN BETTER OFF NOT REBALANCING DURING THAT PERIOD BECAUSE SMALLCOMPANY STOCKS DID SO MUCH BETTER THAN EITHER FOREIGN STOCKS OR LARGECOMPANY STOCKS REBALANCING WOULD HAVE LED YOU TO TRIM BACK THE SMALLSTOCK POSITION THEREBY SELLING YOUR BESTPERFORMING ASSET NONETHELESS MR PERRITT THINKS INVESTORS MAY WANT TO REGULARLY REBALANCE FREQUENTLY CUTTING BACK ON THEIR SMALLSTOCK HOLDINGS THE REASON SMALL STOCKS TEND TO FLUCTUATE MUCH MORE IN VALUE THAN OTHER TYPES OF STOCKS IF YOU DIDN'T REBALANCE AND INSTEAD ALLOWED THE SMALLSTOCK POSITION IN YOUR PORTFOLIO TO GET EVER BIGGER THE PORTFOLIO'S RISK LEVEL WOULD SKYROCKET BY CONTRAST A REGULARLY REBALANCED PORTFOLIO COMPRISED OF EQUAL INVESTMENTS IN SMALL LARGE AND FOREIGN STOCKS ISN'T NEARLY SO RISKY SAYS MR PERRITT HE CALCULATES THAT BY PUTTING TOGETHER A PORTFOLIO COMPRISED OF ALL THREE TYPES OF STOCKS AND THEN REGULARLY REBALANCINGYOU MAY NOT HAVE DONE AS WELL AS A PORTFOLIO THAT WASN'T REBALANCED BUT YOU WOULD DONE MUCH BETTER THAN IF YOU HAD INVESTED ONLY IN FOREIGN STOCKS OR INVESTED ONLY IN LARGECOMPANY STOCKS THAT EXTRA RETURN COMES WITH A MODEST PRICE TAG THE INCREASE IN RISK OVER A PURE BLUECHIP PORTFOLIO IS NEGLIGIBLE SAYS MR PERRITT YOU'RE NOT TAKING A WHOLE LOT MORE RISK BUT YOU'RE BUMPING UP THE RETURN A LOT MR PERRITT FIGURES THAT THE REGULARLY REBALANCED PORTFOLIO WOULD HAVE RETURNED ROUGHLY 15 PERCENTAGE POINTS A YEAR MORE THAN A PORTFOLIO COMPRISED SOLELY OF BLUE CHIP STOCKS 9306250077 930625 EUROTUNNEL PUTS FUNDING NEEDS AT 147 BILLION SPECIAL TO THE WALL STREET JOURNAL LONDON THE ANGLOFRENCH CHANNEL TUNNEL PROJECT EUROTUNNEL PLC ESTIMATED ITS ADDITIONAL FUNDING NEEDS UNDER OR AROUND ONE BILLION POUNDS 147 BILLION AND SAID IT HOPES TO RAISE MORE THAN HALF OF THAT AMOUNT IN 1994 AND 1995 CHIEF FINANCIAL OFFICER GRAHAM CORBETT TOLD THE GROUP'S ANNUAL MEETING THAT EUROTUNNEL WANTS TO RAISE PART OF THE FUNDS THROUGH AN EQUITY OR RELATED ISSUE AT OR AROUND THE FIRST HALF OF 1994 IF MARKET CONDITIONS ARE FAVORABLE AT THE TIME HE SAID SUCH AN OFFERING WOULD BE THE FIRST PART OF A BROADER PACKAGE OR SEQUENCE OF EQUITY AND DEBT FUNDING TO BE ARRANGED FROM SPRING 1994 TO EARLY 1996 MR CORBETT SAID TALKS WITH THE GROUP'S BANKS HAVE BROUGHT A GENERAL ACCEPTANCE THAT FUNDING FROM 1994 ONWARD SHOULD BE EQUALLY DIVIDED BETWEEN DEBT AND EQUITY OR EQUITYTYPE INSTRUMENTS ON RELATED ISSUES MR CORBETT SAID EUROTUNNEL DIRECTORS MAY SHORTEN THE EXERCISE PERIOD ON A PROPOSED SERIES OF BONUS WARRANTS TO JUNE 30 1994 FROM OCT 31 1995 PROVIDED THAT TERMS AND MARKET CONDITIONS WOULD GENERATE SUFFICIENT PROFIT TO HOLDERS HE UNDERLINED THAT EUROTUNNEL DOESN'T EXPECT TO USE THIS OPTION UNLESS NO CAPITAL MARKET ISSUE IS MADE IN THE SPRING OF 1994 AT THE SAME MEETING EUROTUNNEL CHIEF EXECUTIVE SIR ALASTAIR MORTON TOLD SHAREHOLDERS THE GROUP IS PREPARING A CASE AGAINST THE FRENCH AND BRITISH RAIL SYSTEMS TO SEEK COMPENSATION FOR INFRASTRUCTURE SHORTCOMINGS LATE PASSENGER TRAIN ARRIVALS SUBSIDIES GIVEN TO COMPETITORS AND OTHER RESTRAINTS ON SERVICES MR MORTON ALSO TOOK A TOUGH POSITION ON EUROTUNNEL'S LONGRUNNING FIGHT WITH ITS 10 CONTRACTORS KNOWN COLLECTIVELY AS TRANSMANCHE LINK HE SCOFFED AT RECENT SUGGESTIONS THAT IT MAY BE CHEAPER FOR EUROTUNNEL TO GIVE IN TO TML'S COST OVERRUN CLAIMS THAN TO LOSE REVENUE FROM A DELAYED OPENING OF THE TUNNEL PROJECT WHICH WILL LINK ENGLAND AND FRANCE THE REVENUES WE MAY NOW LOSE ARE A FRACTION OF THE EXCESS COSTS WE ARE BEING PRESSURED BY TML TO PAY HE SAID ADDING THAT EUROTUNNEL WILL WAIT FOR THE CLAIMS TO BE PROVEN AND FOR ARBITRATORS TO RULE ON THE MATTER EUROTUNNEL HAS RAISED THE PROSPECT THAT THE TUNNEL MAY OPEN ON A PHASEDIN BASIS STARTING AS EARLY AS JANUARY 1994 FOR COMPLETION AS EARLY AS MAY AND A SUBSEQUENT BUILDUP OF SERVICES TML ON THE OTHER HAND HAS SAID THE SERVICE MAY NOT START UNTIL JULY 1 1994 9306250075 930625 BUSINESS BRIEF SEQUA CORP PROBE OF JET PARTS BUSINESS TO BE SETTLED WITH PAYMENT SEQUA CORP NEW YORK SAID IT AGREED TO PAY AS MUCH AS 5 MILLION AS PART OF A SETTLEMENT WITH FEDERAL AUTHORITIES RELATED TO AN INVESTIGATION OF THE COMPANY'S JET COMPONENT RESTORATION BUSINESS UNDER TERMS OF THE AGREEMENT THE US ATTORNEY'S OFFICE FOR THE SOUTHERN DISTRICT OF NEW YORK AGREED NOT TO PROSECUTE SEQUA THE 5 MILLION PAYMENT TO FEDERAL AUTHORITIES WILL COVER COSTS OF TESTING AND ANALYSIS OF JET ENGINE PARTS SEIZED IN THE INVESTIGATION SEQUA WHICH HAS INTERESTS IN CHEMICALS AEROSPACE AND MACHINERY SAID IT WILL RECOVER ANY UNUSED FUNDS THE SETTLEMENT WITH FEDERAL AUTHORITIES ENDED A SERIES OF INQUIRIES INTO SEQUA'S JET ENGINE COMPONENT REPAIR BUSINESS THAT BEGAN IN NOVEMBER IN APRIL THE FEDERAL AVIATION ADMINISTRATION SUSPENDED OPERATIONS AT SEQUA'S CHROMALLOY RESEARCH & TECHNOLOGY UNIT IN ORANGEBURG NY AND FINED THE COMPANY 5 MILLION OPERATIONS AT CHROMALLOY RESEARCH & TECHNOLOGY RESUMED ON JUNE 10 9306250074 930625 RETARDED PEOPLE SUFFER SETBACK IN HIGH COURT STATES CAN SET LOOSER RULE THAN FOR MENTALLY ILL TO FORCE COMMITMENT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID STATES MAY MAKE IT EASIER TO COMMIT THE MENTALLY RETARDED INVOLUNTARILY THAN THE MENTALLY ILL THE 54 RULING UPHELD AN UNUSUAL LEGAL DISTINCTION MADE BY KENTUCKY WHICH GIVES MENTALLY ILL PEOPLE GREATER PROTECTION AGAINST INVOLUNTARY INSTITUTIONALIZATION THAN IT DOES TO RETARDED PEOPLE IN A SEPARATE CASE THE HIGH COURT SAID THAT PROSECUTORS SOMETIMES MAY BE FORCED TO PAY MONETARY DAMAGES FOR FALSE STATEMENTS THEY MAKE IN NEWS CONFERENCES OR FOR IMPROPER ACTIONS IN INVESTIGATIONS THE IMMEDIATE PRACTICAL IMPACT OF THE RULING IN THE KENTUCKY CASE WILL BE SLIGHT BECAUSE THE STATE'S CIVIL COMMITMENT RULES ARE UNUSUAL THE HIGH COURT MAY WELL HAVE INTERCEDED IN THE CASE TO REMIND LOWER FEDERAL COURTS NOT TO SECONDGUESS STATE LEGISLATURES BASED ON ALLEGED VIOLATIONS OF EQUALPROTECTION OR DUEPROCESS RIGHTS WRITING FOR THE COURT'S MAJORITY JUSTICE ANTHONY KENNEDY EMPHASIZED THAT APART FROM A LIMITED CATEGORY OF CASES FOR EXAMPLE THOSE INVOLVING DISCRIMINATION BASED ON RACE OR SEX FEDERAL COURTS GENERALLY SHOULDN'T QUESTION LAWMAKERS' DECISIONS TO TREAT DIFFERENT GROUPS OF PEOPLE DIFFERENTLY YESTERDAY'S RULING WAS A DEFEAT FOR A GROUP OF INVOLUNTARILY COMMITTED RETARDED PEOPLE WHO HAD SUED KENTUCKY THEY HAD ARGUED SUCCESSFULLY IN THE LOWER COURTS THAT THE STATE VIOLATED THEIR CONSTITUTIONAL RIGHTS KENTUCKY REQUIRES THAT TO BE INSTITUTIONALIZED INVOLUNTARILY MENTALLY ILL PEOPLE MUST BE PROVED DANGEROUS BEYOND A REASONABLE DOUBT THE SAME STRINGENT STANDARD USED IN CRIMINAL PROSECUTIONS IN CONTRAST THE STATE REQUIRES THAT RETARDED PEOPLE BE PROVED DANGEROUS BY CLEAR AND CONVINCING EVIDENCE A LESS DEMANDING STANDARD THAT IS USED IN CIVIL PROCEEDINGS NEARLY ALL OTHER STATES USE THE LOOSER CLEAR AND CONVINCING STANDARD FOR PROCEEDINGS INVOLVING BOTH MENTALLY ILL AND RETARDED PEOPLE THE HIGH COURT MAJORITY ALSO SAID THAT KENTUCKY HAD THE AUTHORITY TO ALLOW RELATIVES OR GUARDIANS OF MENTALLY RETARDED PEOPLE TO PARTICIPATE FULLY IN COMMITMENT PROCEEDINGS EVEN WHEN THEY ARE URGING INSTITUTIONALIZATION AGAINST THE WISHES OF THE MENTALLY RETARDED KENTUCKY GIVES RELATIVES OF THE MENTALLY ILL NO SUCH RIGHT ALL KENTUCKY HAD TO SHOW WAS THAT IT HAD A RATIONAL BASIS FOR MAKING THESE DISTINCTIONS THE MAJORITY SAID ONE SUCH JUSTIFICATION WAS THAT TREATMENT OF THE MENTALLY ILL TENDS TO BE MORE INVASIVE THAN THAT OF THE RETARDED THE MAJORITY ASSERTED THE CASE ON PROSECUTORS' LIABILITY INVOLVED AN ILLINOIS MAN WHO SUED PROSECUTORS ALLEGING THAT THEY FABRICATED EVIDENCE DURING A RAPEMURDER INVESTIGATION AND MADE FALSE STATEMENTS ABOUT HIM AT A NEWS CONFERENCE CHARGES AGAINST HIM EVENTUALLY WERE DROPPED BUT ONLY AFTER HE HAD SPENT THREE YEARS IN JAIL BECAUSE HE COULDN'T AFFORD BAIL HE SUBSEQUENTLY FILED SUIT A FEDERAL APPEALS COURT SAID THAT THE PROSECUTORS ENJOYED AN ABSOLUTE SHIELD AGAINST SUCH SUITS BUT THE SUPREME COURT REVERSED THAT DECISION AND REINSTATED THE PLAINTIFF'S SUIT PROSECUTORS ENJOY ABSOLUTE IMMUNITY FROM SUITS CONCERNING THEIR WORK AS COURTROOM ADVOCATES BUT THE JUSTICES UNANIMOUSLY RULED THAT THIS TOTAL PROTECTION DOESN'T EXTEND TO OUTOFCOURT STATEMENTS SUCH AS THOSE AT NEWS CONFERENCES AND IN A SEPARATE 54 VOTE IN THE SAME CASE THE HIGH COURT SAID PROSECUTORS DON'T HAVE IMMUNITY AGAINST BEING SUED OVER THEIR ROLE IN INVESTIGATIONS EITHER 9306250073 930625 UNITED AIRLINES MAY SPIN OFF SHORT ROUTES NEW CARRIER WOULD ASSUME UNPROFITABLE FLIGHTS PROPOSAL ANGERS UNIONS BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNITED AIRLINES SAID IT MIGHT SPIN OFF A NEW NONUNION AIRLINE TO FLY ITS UNPROFITABLE SHORTHAUL US ROUTES THE PLAN IS DRAWING FIRE FROM ITS PILOTS' UNION THE POSSIBLE SPINOFF WHICH COULD AFFECT NEARLY A THIRD OF UNITED'S NONSTOP FLIGHTS IS ONE OF MANY PLANS THE COMPANY IS CONSIDERING TO REDUCE COSTS AND REGAIN PROFITABILITY UNITED'S PARENT UAL CORP ALSO HAS SAID IT IS LOOKING AT SPLITTING OFF SOME OF ITS DOMESTIC SERVICES TO LOWERCOST CARRIERS WHO COULD FLY SHORT ROUTES ANOTHER OPTION IS TO FORGE A MARKETING OR OTHER TYPE OF ALLIANCE WITH A SMALLER COMPETITOR THE COMPANY SAID IT DOESN'T EXPECT TO MAKE ANY DECISIONS FOR AT LEAST SIX MONTHS THE AIR LINE PILOTS' ASSOCIATION WASN'T AVAILABLE FOR COMMENT ON THE SPINOFF PLAN BUT ACCORDING TO COMMERCIAL AVIATION NEWS ALPA OFFICIALS CONTENDED THAT CREATION OF A NONUNION CARRIER WOULD VIOLATE ITS CONTRACT WITH UNITED HARLOW OSTEBOE VICE CHAIRMAN OF THE PILOTS UNION TOLD THE TRADE PUBLICATION THAT THE CONTRACT PROHIBITS ANY ENTITY BUT UNITED'S COMMUTER PARTNERS FROM FLYING ANY OF ITS DOMESTIC ROUTES HOWEVER SOME ANALYSTS VIEWED THE IDEA AS A GOOD ONE IF YOU HAD LOST ALMOST A BILLION DOLLARS YOU'D CONSIDER IT TOO SAID CANDACE BROWNING AN ANALYST AT MERRILL LYNCH LIKE OTHER MAJOR CARRIERS UNITED'S SHORTHAUL ROUTES FACE FIERCE COMPETITION FROM SOUTHWEST AIRLINES AND OTHER LOWCOST OPERATORS SHE SAID MOREOVER CONSUMERS ARE REBELLING AGAINST HIGH FARES CHARGED BY THE MAJORS FOR SHORT FLIGHTS UNITED HAD A LOSS OF 9568 MILLION LAST YEAR INCLUDING 5396 MILLION IN ONETIME ACCOUNTING ADJUSTMENTS COMPARED WITH A LOSS OF 3319 MILLION IN 1991 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UAL STOCK ROSE 3875 TO CLOSE AT 12450 OTHER MAJOR AIRLINES ALSO ARE LOOKING FOR WAYS TO REDUCE THEIR COSTS ON DOMESTIC SERVICES AMR CORP'S AMERICAN AIRLINES UNIT LAST MONTH SIGNED AN AGREEMENT WITH UPSTART RENO AIR THAT ALLOWS RENO TO SUBLEASE GATES FROM AMERICAN AT SAN JOSE CALIF AIRPORT LIKEWISE DELTA AIR LINES IS SWITCHING SOME DOMESTIC SERVICES TO ITS REGIONAL AIRLINE PARTNERS THAT CAN OPERATE THE ROUTES MORE PROFITABLY A SPOKESMAN FOR UNITED WAS UNABLE TO SAY HOW MANY EMPLOYEES MIGHT BE AFFECTED BY A SPINOFF ONE ANALYST PREDICTED THAT THE MOVE WOULD AFFECT ABOUT 90 OF UNITED'S DOMESTIC ROUTES A DIANE TUCKER PRESIDENT OF THE FLIGHT ATTENDANTS' UNION AT UNITED SAID SHE THINKS THE PLAN IS A NEGOTIATING TACTIC BY THE COMPANY TO GET THE UNIONS TO AGREE TO CONCESSIONS ON WAGES AND BENEFITS SHE SAID UNIONS REPRESENTING FLIGHT ATTENDANTS PILOTS AND MACHINISTS ARE EXAMINING THE COMPANY'S FINANCES TO SEE WHAT IF ANYTHING THE UNIONS MIGHT DO TO HELP UNITED LOWER ITS COSTS MS TUCKER ALSO SAID THAT BOTH THE PILOTS AND FLIGHT ATTENDANTS UNIONS BELIEVE A SPINOFF WOULD VIOLATE THEIR CONTRACTS THE UNIONS SHE SAID WOULD FIGHT SUCH ACTION EVERY STEP OF THE WAY ANALYSTS AGREED THAT THE SPINOFF OPTION CARRIES GREAT RISK FOR THE COMPANY THE UNIONS COULD REACT VERY NEGATIVELY AND INITIATE SOME SORT OF SLOWDOWN ACTION SAID MS BROWNING OF MERRILL LYNCH BUT UNITED'S MANAGEMENT IS SMART IN DOING THIS NOW SHE SAID UNITED CURRENTLY HAS ABOUT 15 BILLION IN CASH AND COULD STILL ACT WHILE THEIR RELATIONSHIP WITH THEIR COMPETITORS IS STRONG 9306250072 930625 LEISURE & ARTS BOOKSHELF A NOVELIST'S OWN REMARKABLE STORY BY BRUCE BAWER MARY RENAULT 19051983 WAS NOT ONLY ONE OF THE BEST HISTORICAL NOVELISTS EVER BUT ALSO AS DAVID SWEETMAN SHOWS IN MARY RENAULT A BIOGRAPHY HARCOURT BRACE 322 PAGES 2495 ONE OF THE MORE REMARKABLE WOMEN OF HER DAY HER NOVELS OF ANCIENT GREECE SO AWED HISTORICAL SCHOLARS WITH THEIR UNERRING GEOGRAPHICAL AND PERIOD DETAIL AND THEIR AUTHOR'S SEEMINGLY PRETERNATURAL UNDERSTANDING OF HELLENIC MANNERS AND MORALS THAT MANY THOUGHT SHE MUST HAVE STUDIED THE CLASSICS AND LIVED IN ATHENS YET IN FACT SHE TRAINED AS A NURSE AND MADE ONLY TWO BRIEF TRIPS TO THE MEDITERRANEAN LIKEWISE RENAULT'S RESPECTFUL AND ASTONISHINGLY PERCEPTIVE PORTRAYALS OF AFFECTIONATE MALE RELATIONSHIPS IN SUCH NOVELS AS THE LAST OF THE WINE AND THE CHARIOTEER LED MANY TO ASSUME SHE MUST BE A GAY MAN WRITING UNDER A PSEUDONYM THEY WERE HALF RIGHT THOUGH SHE WAS NO MAN RENAULT DID USE A PEN NAME BORN EILEEN MARY CHALLANS SHE WAS THE DAUGHTER OF A MIDDLECLASS LONDON DOCTOR AND A HOUSEWIFE NAMED CLEMENTINE WHOM MARY DISAPPOINTED WITH HER LACK OF INTEREST IN DOLLS LIKE RENAULT'S LIFE MR SWEETMAN'S BOOK BREAKS DOWN INTO TWO PARTS THE FIRST COVERS HER YEARS IN ENGLAND A PERIOD OF WAR DRUDGERY POVERTY AND ICY WINTERS HERE WHILE WORKING AS A NURSE ONE OF THE FEW PROFESSIONS OPEN TO AN EDUCATED WOMAN WHO WISHED TO SUPPORT HERSELF RENAULT TURNED OUT A SERIES OF ROMANTIC NOVELS SET LARGELY IN HOSPITALS THAT ARE NOTABLE NOW MAINLY BECAUSE OF THEIR DARING HINTS OF LESBIANISM AND BECAUSE THE AUTHOR LATER DISMISSED THEM AS APPRENTICE WORKS AN MGM AWARD FOR ONE OF THESE BOOKS RETURN TO NIGHT ENABLED RENAULT AND HER LIFELONG COMPANION JULIE MULLARD TO MOVE TO SOUTH AFRICA WHERE SHE WROTE HER NOVELS OF GREECE RENAULT'S POLITICS DID NOT FIT EASILY INTO THE IDEOLOGICAL MOLDS OF HER TIME THOUGH HER BOOKS CONTRIBUTED MIGHTILY TO A GREATER UNDERSTANDING OF HOMOSEXUALITY AND THOUGH SHE BRAVELY FOUGHT ATTEMPTS TO PASS ANTIGAY LEGISLATION IN SOUTH AFRICA RENAULT WASN'T ENTHUSIASTIC ABOUT THE GAYLIBERATION MOVEMENT SEEING IT AS SHE DID ALL MOVEMENTS AS A THREAT TO INDIVIDUALITY NOR THOUGH SHE WOULD SEEM AN IDEAL FEMINIST ROLE MODEL WAS RENAULT FOND OF WOMEN'S LIBERATION TO THE ARGUMENT THAT WOMEN HAD NEVER PRODUCED A SHAKESPEARE OR A BEETHOVEN BECAUSE THEY HAD BEEN KEPT AT THE KITCHEN SINK RENAULT RESPONDED SARDONICALLY AS IF YOU COULD KEEP SHAKESPEARE AT A SINK IF SHE WAS SHAKESPEARE SHE WOULDN'T LET YOU CULTURALLY RENAULT WAS AN UNABASHED ELITIST TO BE SURE LIKE THE ANCIENT ATHENIANS WHOM SHE IDOLIZED SHE BELIEVED IN DEMOCRACY BUT SHE ALSO FELT THAT CIVILIZATION'S HIGHEST ACCOMPLISHMENTS ARE THE WORK OF EXTRAORDINARY INDIVIDUALS WHO TRIUMPH OVER DIFFICULT CIRCUMSTANCES BY VIRTUE OF THEIR WILLPOWER AND NATIVE GIFTS IF MODERN HISTORIANS DISPARAGED ALEXANDER AS A BLOODTHIRSTY TYRANT RENAULT REFUSED TO JUDGE HIM BY STANDARDS THAT HAD NOT EXISTED IN HIS OWN DAY INSTEAD IN FIRE OVER HEAVEN AND THE PERSIAN BOY SHE CELEBRATED HIM FOR HIS VALOR STRATEGIC BRILLIANCE AND MERCY IN VICTORY APARTHEID BROUGHT RENAULT'S CULTURAL ELITISM INTO DRAMATIC CONFLICT WITH HER DEMOCRATIC PRINCIPLES FROM THE BEGINNING SHE RESISTED SEGREGATION WHEN A WHITES ONLY SIGN WAS POSTED ON THE BEACH NEAR HER HOUSE SHE WENT OUTSIDE WITH A SCREWDRIVER AND REMOVED IT YET AS THE ANTIAPARTHEID CAUSE SPREAD AROUND THE WORLD RENAULT WAS WIDELY SEEN AS RACIST BECAUSE SHE OPPOSED CULTURAL BOYCOTTS OF HER COUNTRY AND BECAUSE IN HER ROLE AS HONORARY CHAIR OF THE CAPE TOWN BRANCH OF PEN THE INTERNATIONAL WRITER'S ORGANIZATION SHE REFUSED TO EXTEND MEMBERSHIP INVITATIONS TO UNDERQUALIFIED BLACK AUTHORS IN HER VIEW SUCH INVITATIONS NOT ONLY REPRESENTED A RELAXATION OF LITERARY STANDARDS FOR POLITICAL REASONS SOMETHING OF WHICH SHE DISAPPROVED WITHOUT EXCEPTION BUT REFLECTED A PATRONIZING RACIAL ATTITUDE IN THIS REGARD SHE STOOD IN SHARP CONTRAST TO NADINE GORDIMER THE HEAD OF JOHANNESBURG PEN WHOSE WELLPUBLICIZED SUPPORT FOR BLACK AUTHORS HELPED WIN HER WORLDWIDE FAME MS GORDIMER DOESN'T COME OFF WELL HERE AFTER HER PEN CRONIES TRIED TO EXPEL THE CAPE TOWN BRANCH RENAULT WROTE ANGRILY TO A FRIEND THAT I HAVE NEVER PLAYED LITERARY POLITICS I HAVE NEVER SUCKED UP TO ANYONE TO GET MY WORK PROMOTED SO FAR AS I HAVE INFLUENCED PEN POLICY ON BEHALF OF BANNED WRITERS I HAVE ALWAYS GONE ALONG WITH THE DIRECT APPROACH TO THE MINISTER WHICH HAS OFTEN ACHIEVED RESULTS RATHER THAN THE SELFADVERTIZING PROTEST WHICH HARDENS HIS ATTITUDE TOWARDS THE WRITER WHILE TURNING THE LIMELIGHT ON ONESELF NATURALLY THIS DOES NOT GET INTO THE PAPERS BUT THE WRITER BENEFITS WHICH IS WHAT PEN IS SUPPOSED TO BE ALL ABOUT MR SWEETMAN HAS NOT WRITTEN THE MOST DEEPLY PROBING OF BIOGRAPHIES WE DON'T COME AWAY WITH A STRONG SENSE OF RENAULT'S INNER LIFE BUT WE DO GET A PRETTY GOOD IDEA OF WHAT IT MIGHT HAVE BEEN LIKE TO KNOW THIS TOUGH HARDWORKING WOMAN WHOSE INSIGHT INTO OTHER PEOPLE AND OTHER TIMES AND WHOSE SERIOUS ATTENTION TO THE PRINCIPLES BY WHICH THOSE PEOPLE LIVED MADE HER OEUVRE ONE OF THE NOBLER MOMENTS IN 20THCENTURY FICTION 9306250071 930625 D&B INDEX SHOWS LOWER SALES OPTIMISM IN FACTORIES RETAIL NEW YORK EXPECTATIONS FOR HIGHER SALES AMONG MANUFACTURERS AND RETAILERS IN THE THIRD QUARTER FELL SLIGHTLY WHILE SERVICE COMPANIES WERE MORE OPTIMISTIC ACCORDING TO A DUN & BRADSTREET CORP QUARTERLY SURVEY OF ABOUT 3000 EXECUTIVES OVERALL HOWEVER BUSINESS OPTIMISM REMAINS FIRM SAID JOSEPH W DUNCAN VICE PRESIDENT AND CHIEF ECONOMIST FOR D&B A BUSINESSINFORMATION PUBLISHING CONCERN THE INDEX MEASURING MANUFACTURERS' EXPECTATIONS FOR HIGHER SALES IN THE 1993 THIRD QUARTER FELL TO 65 FROM 71 WITH DURABLE GOODS AND NONDURABLE GOODS MANUFACTURERS POSTING DECLINES A SIMILAR INDEX FOR MANUFACTURERS' NEW ORDERS SLID TO 64 FROM 69 D&B CALCULATES THE INDEX BY SUBTRACTING THE PERCENTAGE OF RESPONDENTS WHO SAID THEY EXPECT DECREASES FROM THE PERCENTAGE WHO SAID THEY EXPECT INCREASES IN CATEGORIES INCLUDING SALES PROFITS AND EMPLOYMENT LEVELS ALL COMPARISONS ARE WITH THE SECOND QUARTER THE RETAIL AND WHOLESALE TRADE SECTORS REPORTED SLIGHT DECLINES IN SALES OPTIMISM LEVELS THE SERVICES SECTOR POSTED THE SHARPEST INCREASE WITH THE INDEX RISING ITS HIGHEST SINCE THE 1989 THIRD QUARTER TO 62 FROM 55 MANUFACTURERS' EXPECTATIONS FOR HIGHER THIRDQUARTER PROFITS SLID TO 57 FROM 63 THE SERVICESECTOR PROFIT INDEX ROSE TO 54 FROM 46 EXPECTATIONS FOR PRICE INCREASES AMONG ALL COMPANIES SURVEYED STEADIED BELOW LATE 1989 AND EARLY 1990 LEVELS THE EMPLOYMENT OPTIMISM INDEX FOR THE COMPANIES STEADIED AT 19 9306250069 930625 HEALTH COLUMBIA HOSPITAL CORP SCORES SUCCESS WITH A ONESTOP HEALTHCARE STRATEGY BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL EL PASO TEXAS AS AN ANTIDOTE TO ITS ILLNESSES MUCH OF AMERICA IS LIKELY TO GET A BIG DOSE OF COLUMBIA HEALTH CARE INC IN THE NEAR FUTURE WHEN THE RECENTLY ANNOUNCED MERGER OF COLUMBIA HOSPITAL CORP WITH GALEN HEALTH CARE INC IS EFFECTED THE RENAMED COLUMBIA HEALTH CARE WILL OWN 99 ACUTECARE HOSPITALS THE MOST OF ANY FORPROFIT CHAIN IN 20 METROPOLITAN MARKETS COLUMBIA HOSPITAL'S STRATEGY HAS INVOLVED OFFERING A ONESTOP SHOPPING CENTER OF FACILITIES SERVICES AND PHYSICIANS TO MANAGEDCARE ORGANIZATIONS IN EACH OF ITS MARKETS IT ACCOMPLISHES THIS BY ACQUIRING A SUBSTANTIAL MARKET SHARE IN EACH MARKET THROUGH ACQUISITIONS AND SUBSEQUENT CONSOLIDATIONS AND BY ATTRACTING LOCAL PHYSICIANS AS INVESTORS ENTHUSIASTIC ANALYSTS SAY THE STRATEGY IS PERFECTLY SUITED TO THE MANAGED COMPETITION ERA OF HEALTH CARE ENVISIONED BY THE CLINTON ADMINISTRATION IN WHICH LARGE GROUPS OF CONSUMERS WILL ORGANIZE TO NEGOTIATE LOWERCOST CARE CONTRACTS WITH PROVIDERS HERE IN EL PASO THE COMPANY HAS LASHED TOGETHER A DIVERSIFIED HEALTHCARE SYSTEM CONSISTING OF ACUTECARE HOSPITALS PHYSICALTHERAPY CENTERS INFUSIONTHERAPY PROVIDERS AND DIAGNOSTIC CENTERS THAT ALLOWS IT TO KEEP PATIENTS AND THE RESULTING REVENUES WITHIN ITS SYSTEM EVEN AFTER THEY HAVE CHECKED OUT OF ITS HOSPITALS COLUMBIA IS A FORMIDABLE FORCE SAYS DAVID BUCHMUELLER CHIEF EXECUTIVE OFFICER OF PROVIDENCE MEMORIAL HOSPITAL A NOTFORPROFIT FACILITY HERE WHOSE BOARD REJECTED AN ACQUISITION BID FROM COLUMBIA AS COLUMBIA HAS ROLLED ITS STRATEGY OUT IN MARKET AFTER MARKET AND WITH THE GALEN MERGER IT WILL STEP INTO 15 NEW MARKETS CONCERNS REMAIN ABOUT WHETHER THE COLUMBIA MODEL WILL REDUCE OR INCREASE COSTS TO PATIENTS AND THIRDPARTY PAYERS BUT NOBODY HAS QUESTIONED THE COMPANY'S IMPRESSIVE GROWTH AND PROFITABILITY AND A LOOK AT EL PASO THE FIRST MARKET THE FLEDGLING COMPANY INVADED FIVE YEARS AGO ILLUSTRATES HOW COLUMBIA HAS ACCOMPLISHED THAT GROWTH SOON AFTER IT WAS FOUNDED IN 1987 BY DALLAS HEALTHCARE ATTORNEY RICHARD SCOTT AND TEXAS FINANCIER RICHARD RAINWATER COLUMBIA SLAMMED INTO THE CITY PAYING 60 MILLION FOR TWO TROUBLED LOCAL HOSPITALS SUN TOWERS HOSPITAL A STODGY 252BED FORMER NURSING HOME WAS WITHIN BLOCKS OF TWO MORE PROMINENT COMPETITORS LOCALLY OWNED PROVIDENCE MEMORIAL HOSPITAL AND 304BED SIERRA MEDICAL CENTER OWNED BY CALIFORNIABASED NATIONAL MEDICAL ENTERPRISES INC WHOSE EXTENSIVE MARKETING HAD HELPED IT GAIN A REPUTATION AS THE AREA'S HIGHTECH LEADER MEANWHILE SOME PATIENTS DROVE MILES TO AVOID CHECKING INTO COLUMBIA'S OTHER LOCAL ACQUISITION VISTA HILLS MEDICAL CENTER THE ONLY MAJOR HOSPITAL ON THE CITY'S EAST SIDE BATTERED BY TWO QUICK OWNERSHIP CHANGES VISTA HILLS COULD BARELY KEEP HALF OF ITS 201 BEDS FILLED AND RELATIONS BETWEEN DOCTORS AND ADMINISTRATORS WERE SO BAD THAT SOME PHYSICIANS HAD BEEN BEGGING OUTSIDERS TO EITHER BUY THE HOSPITAL OR BUILD A COMPETING FACILITY NEARBY AIMING TO WIN BACK THE BUSINESS OF REFERRING PHYSICIANS COLUMBIA EXECUTIVES FANNED OUT PROMISING AREA DOCTORS THAT THEY WOULD BE CLOSELY CONSULTED ON CAPITAL EXPENDITURES AND FACILITY OPERATIONS LONG DISCOURAGED FROM PERFORMING WEEKEND PROCEDURES VISTA HILLS SURGEONS SUDDENLY FOUND THAT THEY COULD SCHEDULE OPERATIONS VIRTUALLY ANY TIME OF THE WEEK OBSTETRICIAN JOSE HERNANDEZ RECALLS HOW HIS COMPLAINTS ABOUT A SHORTAGE OF FETAL MONITORS HAD BEEN IGNORED BY THE PREVIOUS VISTA HILLS ADMINISTRATION BUT WHEN HE RAISED THE ISSUE WITH COLUMBIA A COMPANY EXECUTIVE PICKED UP HIS PHONE AND LEASED SOME MACHINES ON THE SPOT THEY CAME IN WITH THE PROPER MENTAL ATTITUDE SAYS DR HERNANDEZ THE COMPANY EXPANDED CRAMPED OPERATING ROOMS REMODELED DINGY PUBLIC AREAS AND UPGRADED EQUIPMENT MAKING MORE THAN 68 MILLION IN CAPITAL EXPENDITURES IN EL PASO THROUGH THE END OF 1992 WITH AN ADDITIONAL 162 MILLION PROJECTED FOR 1993 COLUMBIA ALSO INVITED LOCAL PHYSICIANS TO ACQUIRE AN OWNERSHIP STAKE IN ITS LOCAL FACILITIES ONE 100PHYSICIAN PARTNERSHIP CONTRIBUTED TWO FREESTANDING DIAGNOSTIC CLINICS TO GAIN A STAKE AND SEVERAL DOZEN INDIVIDUAL PHYSICIANS PAID 30000 EACH TO BECOME LIMITED PARTNERS EL PASO PHYSICIANS EVENTUALLY ACQUIRED A 40 STAKE IN COLUMBIA'S LOCAL FACILITIES ALTHOUGH CRITICS CONTEND THAT SUCH BUSINESS RELATIONSHIPS LEAD TO UNNECESSARY TREATMENTS THE COMPANY ARGUES THAT BILLING REVIEWS BY INSURERS AND GOVERNMENT PAYERS DETER ABUSES AND AREA MANAGEDCARE PROVIDERS SAY THEY HAVEN'T DETECTED ANY SUSPICIOUS BILLING PATTERNS AMONG COLUMBIA'S PHYSICIANINVESTORS I THINK THEY KNOW THEY ARE UNDER THE MICROSCOPE SAYS IRENE CHAVEZ PRESIDENT OF ADVANTAGE CARE NETWORK INC EL PASO'S LARGEST MANAGEDCARE NETWORK STILL THE CRITICISM LOCALLY HAS PROMPTED THE COMPANY TO REDUCE THE DIRECT STAKE HELD BY LOCAL PHYSICIANS BY HALF TO ABOUT 20 ALTHOUGH ABOUT 135 OF THE CITY'S 500 PHYSICIANS MAINTAIN SOME FORM OF DIRECT OWNERSHIP AND ACCOUNT FOR ABOUT 40 OF COLUMBIA'S LOCAL BUSINESS COLUMBIA HAS ALSO GAINED BUSINESS FROM DOCTORS WHO AREN'T INVESTORS PARTLY BECAUSE EL PASO PHYSICIANS HAVE FEWER HEALTHCARE CHOICES THESE DAYS WITHIN MONTHS OF ENTERING THE MARKET COLUMBIA PAID 194 MILLION TO BUY AND CLOSE THE FINANCIALLY TROUBLED LANDMARK MEDICAL CENTER LAST YEAR IT TOOK SIMILAR ACTION WITH A SMALLER COMMUNITY HOSPITAL LARGELY AS A RESULT THE NUMBER OF LICENSED HOSPITAL BEDS IN THE MARKET HAS FALLEN 15 TO ABOUT 1778 SINCE 1989 AT THE SAME TIME BY OPENING ONE PSYCHIATRIC HOSPITAL AND BUYING ANOTHER COLUMBIA HAS BECOME EL PASO'S DOMINANT PROVIDER OF INPATIENT PSYCHIATRIC SERVICES IT HAS ALSO GOBBLED UP ITS PRIMARY COMPETITORS IN THE DIAGNOSTICIMAGING BUSINESS ACQUIRED TWO PHYSICALTHERAPY CENTERS AND OPENED A MUCHPROMOTED 6 MILLION CANCERTREATMENT CENTER CONNECTED TO THE SUN TOWERS HOSPITAL ALTHOUGH MANAGEDCARE PROVIDERS ARE ONLY NOW GAINING A FOOTHOLD IN THE EL PASO MARKET LONNIE L BUSBY PRESIDENT OF COLUMBIA'S LOCAL OPERATING UNIT SAYS THE SYSTEM'S BROAD DIVERSITY IS SPECIFICALLY DESIGNED TO PROVIDE ONESTOP HEALTHCARE SHOPPING TO MANAGEDCARE PROVIDERS AND EVENTUALLY DIRECTLY TO EMPLOYERS THEMSELVES WE'VE GOT EVERYTHING HE SAYS FROM A MANAGEDCARE CONTRACTING STANDPOINT THAT MAKES IT A LOT SIMPLER AND A LOT MORE PROFITABLE FOR COLUMBIA IN 1992 ITS HOSPITALS SNARED AN ESTIMATED 27 OF THE CITY'S MEDICALSURGICAL ADMISSIONS UP FROM ABOUT 19 IN 1987 THE YEAR BEFORE OWNERSHIP CHANGED OVER THE SAME PERIOD THEIR MARKET SHARE OF THE LOCAL BIRTHS INCREASED TO 94 FROM 57 IN 1992 COLUMBIA'S EL PASO DIVISION RECORDED PRETAX INCOME OF 153 MILLION UP 8 FROM 1991 AND MORE THAN DOUBLE THE FIGURE FROM 1989 ITS FIRST FULL YEAR OF LOCAL OPERATION BUT WHETHER COLUMBIA'S PRESENCE HAS LOWERED THE CITY'S HEALTHCARE BILLS OVERALL REMAINS TO BE SEEN COLUMBIA EXECUTIVES CONCEDE THAT THEY HAVEN'T HIT ON ANY DRAMATICALLY CHEAPER MEANS OF TREATING ILLNESSES OR INSTITUTED ANY COSTCUTTING ADMINISTRATIVE PROGRAMS THAT AREN'T BEING USED IN SOME FORM BY RIVALS INDEED COLUMBIA REMAINS IN THE MIDDLE OF THE LOCAL PACK IN TERMS OF ITS CHARGES MEANWHILE FROM 1988 TO 1991 EXPENSES PER INPATIENT HOSPITAL DAY IN THE EL PASO MARKET INCREASED BY 40 TO 803 COMPARED WITH A NATIONWIDE INCREASE OF 28 TO 745 ACCORDING TO AMERICAN HOSPITAL ASSOCIATION FIGURES THESE DAYS COLUMBIA IS LAYING PLANS TO BEGIN DELIVERING BABIES AT SUN TOWERS DESPITE THE FACT THAT PROVIDENCE OFFERS THE SAME SERVICES ACROSS THE STREET AND SOME INSURERS ARE WORRIED THAT THE ADDED CAPACITY ISN'T NEEDED ANYTHING THAT THEY DID WOULD BE STRICTLY IN THE INTEREST OF THEIR CORPORATE GOALS AND NOT IN THE INTEREST OF THE COMMUNITY SAYS MR BUCHMUELLER THE PROVIDENCE CHIEF EXECUTIVE COLUMBIA'S MR BUSBY ARGUES THAT HIS SYSTEM NEEDS TO BE ABLE TO DELIVER BABIES IN THE DOWNTOWN MARKET IF IT IS TO EVER LAND THE SORT OF CITYWIDE MANAGEDCARE CONTRACTS THAT HAVE LONG BEEN ENVISIONED HE ADDS WE'RE NOT GOING TO SIT THERE AND LET PEOPLE TAKE BUSINESS AWAY FROM US WITHOUT TRYING TO PROTECT THE MARKET SHARE 9306250067 930625 LETTERS TO THE EDITOR A REMARKABLE MAN UNFAIRLY PILLORIED YOUR JUNE 1 PAGE ONE PROFILE ON WALTER SHORENSTEIN IN PART ACCURATELY CAPTURED THE ESSENCE OF THIS REMARKABLE MAN HOWEVER IT ALSO UNFORTUNATELY WORKS TO HOLD HIM HOSTAGE TO UNFAIR ALLEGATIONS OF SEXUAL HARASSMENT AND DISCRIMINATION I AM A WOMAN WHO HAS KNOWN MR SHORENSTEIN FOR MORE THAN 25 YEARS IN MY PROFESSIONAL CAPACITY BEFORE I RETIRED AS A POLITICAL FUNDRAISER I HAD ENUMERABLE OPPORTUNITIES TO OBSERVE MR SHORENSTEIN IN THE MOST PERSONAL AND INTIMATE BUSINESS AND OFFICE CIRCUMSTANCES TOUGH HARDDRIVING UNYIELDING IN HIS DETERMINATION TO ACHIEVE HIS GOALS BE THEY IN BUSINESS OR IN ADVANCING A POLITICAL CANDIDATE OR CHARITABLE CAUSE MR SHORENSTEIN WAS AND IS BUT NEVER EVER IN MY AMPLE EXPERIENCE WITH HIM WAS HE SEXUALLY SUGGESTIVE AGGRESSIVE OR DISCRIMINATING IN HIS INTERACTIONS AND RELATIONSHIPS WITH WOMEN ON HIS STAFF OR OTHERS IT IS INDEED UNFORTUNATE THAT PEOPLE SUCH AS MR SHORENSTEIN WHO HAVE RISEN TO A LEVEL OF POWER INFLUENCE AND WEALTH ARE PUBLICLY STRONGARMED BY MISLEADING ACCUSATIONS THAT ATTEMPT TO RANSOM THE REPUTATION OF A MAN FOR PERSONAL GAIN THE LASTING IMPRESSION YOUR READERS SHOULD TAKE FROM YOUR STORY IS THAT OF AN UNCOMMON MAN WHOSE BOOTSTRAP ACHIEVEMENTS HAVE RAISED HIM TO UNCOMMON HEIGHTS OF SUCCESS ALL THE WHILE MAINTAINING HIS CLEAR FOCUS AND COMMITMENT TO WORK FOR THE COMMON GOOD THAT IS THE WALTER H SHORENSTEIN I AND SO MANY OTHER SAN FRANCISCANS KNOW AND ADMIRE 9306250066 930625 BUSINESS BRIEF BANK OF BOSTON CORP STOCK SUBORDINATED NOTES RAISE CAPITAL FOR PURCHASE BANK OF BOSTON CORP WHICH WAS REQUIRED BY THE FEDERAL RESERVE BOARD TO RAISE AN ADDITIONAL 170 MILLION IN CAPITAL AS A CONDITION FOR THE PURCHASE OF A BANK SAID IT SOLD PREFERRED STOCK AND SUBORDINATED NOTES TO FULFILL THE REQUIREMENT THE FINANCIAL HOLDING COMPANY SOLD 28 MILLION DEPOSITARY SHARES OF PREFERRED STOCK AT 25 PER DEPOSITARY SHARE WHICH WILL BE DESIGNATED AS SERIES F PREFERRED STOCK THE 70 MILLION OFFERING WAS PRICED WITH AN ANNUAL DIVIDEND RATE OF 7 7/8 EACH DEPOSITARY SHARE REPRESENTS A ONETENTH INTEREST IN A SHARE OF THE PREFERRED STOCK THE CONCERN ALSO SOLD 100 MILLION IN SUBORDINATED NOTES NOTES BEARING A COUPON OF 6 7/8 DUE IN 2003 MERRILL LYNCH & CO PAINEWEBBER INC AND WERTHEIM SCHRODER & CO MANAGED THE OFFERING FOR THE PREFERRED STOCK GOLDMAN SACHS & CO JOINED THE UNDERWRITING GROUP FOR THE SUBORDINATED NOTES OFFERING BANK OF BOSTON PLANS TO BUY SOCIETY FOR SAVINGS BANCORP OF HARTFORD CONN AND MULTIBANK FINANCIAL CORP OF DEDHAM MASS FOR A TOTAL OF ABOUT 475 MILLION IN STOCK BASED ON RECENT TRADING OF BANK OF BOSTON SHARES THE ADDITIONAL CAPITAL WAS A REQUIREMENT FOR THE PURCHASE OF MULTIBANK THE OFFERINGS WERE MADE UNDER A SHELF REGISTRATION FILED WITH THE SECURITIES AND EXCHANGE COMMISSION LAST JUNE 9306250065 930625 JETLINER VENTURE STRAINS TO RAISE FUNDS IN TAIWAN BRITISH AEROSPACE'S PARTNER WOOS NERVOUS BANKERS ON EVE OF OBLIGATION BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THE COMBINATION OF BRITISH KNOWHOW AND TAIWANESE FINANCIAL MUSCLE SEEMED JUST THE RIGHT RECIPE FOR AN AVIATION VENTURE WHEN STRUGGLING BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP JOINED FORCES LAST YEAR TO BUILD SHORTHAUL JETLINERS BUT SIX MONTHS AFTER BAE AND TAC AGREED ON A 5050 JOINT VENTURE TO PRODUCE THE BRITISH COMPANY'S LINE OF PASSENGER JETS THE TAIWANESE PARTNER IS HAVING TROUBLE DIGGING INTO THE DEEP POCKETS IT CLAIMED TO BRING TO THE AIRCRAFT VENTURE IN THE END TAC PROBABLY WILL MEET ITS OBLIGATIONS TO THE VENTURE CALLED AVRO INTERNATIONAL AEROSPACE LTD BUT AS AN IMPORTANT CONTRACT DEADLINE APPROACHES IT IS RELYING NOT ONLY ON ITS OWN POWERS OF PERSUASION BUT ALSO ON THE ARMTWISTING OF POWERFUL GOVERNMENT OFFICIALS AT ISSUE NOW IS TAIWAN'S COMMITMENT TO PROVIDE SOME 400 MILLION IN FUNDING FOR AN AVRO LEASING COMPANY THAT WOULD HELP CUSTOMERS ACQUIRE THE VENTURE'S PLANES TAC WHICH REPRESENTS THE JOINT INVESTMENTS OF LARGE TAIWANESE COMPANIES AND GOVERNMENT AGENCIES IS SUPPOSED TO PULL THE FINANCING TOGETHER BY THE END OF THIS MONTH THE TASK OF CAJOLING BANKERS TO GET INTO LINE HAS BEEN DIFFICULT GOVERNMENT OFFICIALS AND INVESTMENT BANKERS SAY THE DEADLINE IS EXPECTED TO BE MET BUT ONLY IN THE FACE OF CONSIDERABLE INVESTOR HESITANCY THE PROBLEM OFFICIALS AND EXECUTIVES SAY IS THAT TAIWANESE INVESTORS IN THE PRIVATE SECTOR AND THE GOVERNMENT HAVE LITTLE EXPERIENCE IN THE COMPLEX WORKINGS OF THE INTERNATIONAL AEROSPACE INDUSTRY ADDED TO THIS IS NERVOUSNESS ABOUT COMMITTING CAPITAL TO TAC AND AVRO AT A TIME WHEN AIRLINES AND AIRCRAFT MAKERS ARE MIRED IN A GLOBAL SLUMP THIS IS WHERE THE GOVERNMENT HAS ENDED UP PLAYING A ROLE IN RECENT WEEKS POLICY MAKERS HAVE WORKED BEHIND THE SCENES TO ENSURE THAT THE NECESSARY FUNDING COMES TOGETHER ON TIME AS PART OF THAT EFFORT GOVERNMENT AGENCIES AND OTHER FINANCIAL INSTITUTIONS CLOSELY AFFILIATED WITH THE GOVERNMENT HAVE BEEN CALLED ON TO ASSUME A HIGHER PROFILE IN TAC AT THE URGING OF VICE PREMIER HSU LITEH CHINA DEVELOPMENT CORP A DEVELOPMENT BANK CONTROLLED BY THE RULING KUOMINTANG HAS COMMITTED TO TAKING A 10 STAKE IN TAC WITH AN INVESTMENT OF 520 MILLION NEW TAIWAN DOLLARS US197 MILLION SIMILARLY CHIAOTUNG BANK A GOVERNMENTOWNED DEVELOPMENT BANK IS PLANNING TO INCREASE ITS STAKE IN TAC TO 10 FROM 5 THE NATIONAL INTEREST HAS BEEN THE MAIN CONCERN IN BRINGING THE NEW MONEY ON BOARD OUR FEASIBILITY STUDY CONCLUDED THAT THIS COMPANY CAN'T INVEST IN TAC SAYS LIU TAIYING CHINA DEVELOPMENT'S CHAIRMAN AND THE HEAD OF THE KUOMINTANG COMMITTEE THAT SUPERVISES PARTYHELD BUSINESSES BUT IF OTHER PEOPLE AREN'T WILLING TO INVEST AND WE DON'T COME INTO THE PROJECT THEN IT WOULD FAIL UNDER THESE CONDITIONS AND IN ORDER TO FIT WITH GOVERNMENT POLICY WE ARE GOING TO INVEST THE INJECTION OF FUNDS BY CHINA DEVELOPMENT AND CHIAOTUNG BANK IS PART OF A LONGDELAYED EFFORT TO BOOST TAC'S CAPITAL TO NT52 BILLION FROM NT13 BILLION AS THOSE TWO INSTITUTIONS PUT IN THEIR MONEY MOST OF TAC'S PRIVATESECTOR BACKERS WILL INVEST ADDITIONAL FUNDS AS WELL THERE WILL ALSO BE ONE NEW CORPORATE INVESTOR THE CATHAY TRUST GROUP WHICH IS OWNED BY TAIWAN'S RICHEST MAN TSAI WANLIN AT THE END OF THE FUNDRAISING EXERCISE THE HOLDINGS OF GOVERNMENT INSTITUTIONS OR INVESTORS AFFILIATED WITH THE GOVERNMENT WILL ADD UP TO NEARLY 50 OF TAC'S CAPITAL ABOUT 29 OF TAC IS HELD BY A GOVERNMENT DEVELOPMENT FUND BUSINESSPEOPLE AND GOVERNMENT OFFICIALS SAY THE PRIVATE SECTOR IS STILL UNINTERESTED UNLESS THE GOVERNMENT IS PREPARED TO PUT UP MONEY AND GUARANTEES ONE PROBLEM THEY HAVE IS THE RECESSION IN THE AEROSPACE INDUSTRY WHICH HAS HURT MANY OF THE SMALL AIRLINES THAT WOULD BE IMPORTANT CUSTOMERS FOR AVRO ANOTHER CONCERN IS THE COMPETITIVENESS OF THE VENTURE'S PLANE A FOURENGINE JET THAT CAN HOLD 75 TO 115 PASSENGERS SOME AVIATION ANALYSTS SAY THE PLANE IS LESS FUELEFFICIENT AND MORE COSTLY TO MAINTAIN THAN TWOENGINE MODELS OF SIMILAR CAPACITY MADE BY OTHER AIRCRAFT MANUFACTURERS AVRO'S BOOSTERS HAVE ACKNOWLEDGED FROM THE START THAT PROFIT WILL COME SEVERAL YEARS DOWN THE ROAD AND FOR TAIWANESE EXECUTIVES USED TO QUICKER RETURNS THAT MAKES AVRO UNATTRACTIVE INDEED IT PALES BY COMPARISON WITH THE PROSPECT OF FAST PROFITS FROM INVESTING IN FACTORIES OR REAL ESTATE IN CHINA WITH THE PRIVATE SECTOR'S CONCERNS IN MIND TAC HAS TAKEN AN IMPORTANT STEP TO REDUCE OUTLAYS FOR ITS PART OF THE VENTURE UNDER THE JOINTVENTURE CONTRACT AVRO WILL PRODUCE ITS PLANES AT PARALLEL PRODUCTION LINES IN BRITAIN AND TAIWAN TAC HAS ARRANGED TO SET UP ITS FACILITY IN TAICHUNG IN CENTRAL TAIWAN AT A SITE RUN BY THE TAIWANESE MILITARY TO PRODUCE A JET FIGHTER BY MAKING USE OF THE FACILITY'S EXISTING INFRASTRUCTURE AND STAFF PRODUCTION COSTS WILL BE SHARPLY REDUCED BOTH BAE AND TAC HAVE CONTRACTED TO COMMIT EQUAL AMOUNTS TO THE LEASING CONCERN AND SOURCES SAY THAT BAE HAS HAD NO DIFFICULTIES MEETING ITS COMMITMENT AS THE DEADLINE FOR TAIWAN'S CONTRIBUTION LOOMS THE PRESSURE IS ON CHIAOTUNG BANK WHICH WILL LEAD A SYNDICATE OF TAIWANESE BANKS THAT WILL FUND THE LEASING OPERATION AS A GOVERNMENTOWNED INSTITUTION CHIAOTUNG BANK WILL BE EXPECTED TO GUARANTEE THE BANKS' EXPOSURE TO THE VENTURE 9306250064 930625 TIME WARNER TO REDEEM DEBT NEW YORK TIME WARNER INC SAID IT WILL REDEEM 900 MILLION PRINCIPAL AMOUNT OF ITS 875 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2015 THE MEDIA AND ENTERTAINMENT COMPANY SAID IT WILL REDEEM THE DEBENTURES ON JULY 9 AT 106319 FOR EACH 1000 FACE AMOUNT INCLUDING ACCRUED INTEREST ABOUT 315 BILLION OF THE 875 DEBT IS OUTSTANDING 9306250063 930625 WHO'S NEWS TIG NAMES FINANCE CHIEF NEW YORK TIG HOLDINGS INC THE HOLDING COMPANY FOR TRANSAMERICA INSURANCE GROUP NAMED EDWIN G PICKETT 46 YEARS OLD TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR PICKETT WAS PREVIOUSLY CHIEF FINANCIAL OFFICER AT USF&G CORP HE WILL ASSUME THE DUTIES OF EDWARD D SANTOS SENIOR VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER WHO IS LEAVING TO PURSUE OTHER INTERESTS THE COMPANY SAID USF&G A BALTIMOREBASED PROPERTY AND CASUALTY INSURER SAID DAN L HALE 49 WILL SUCCEED MR PICKETT ITS PRINCIPAL UNIT IS UNITED STATES FIDELITY & GUARANTY CO MR HALE WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHASE MANHATTAN LEASING CO A UNIT OF CHASE MANHATTAN CORP IN NEW YORK 9306250062 930625 BLACK CAUCUS IN CONGRESS OPPOSES FREETRADE PACT WASHINGTON THE CONGRESSIONAL BLACK CAUCUS ANNOUNCED THAT IT OPPOSES THE NORTH AMERICAN FREE TRADE AGREEMENT ARGUING THAT IT WOULD HURT US WORKERS THE PROTEST COMES ON THE HEELS OF THE GROUP'S CRITICISM OF PRESIDENT CLINTON'S HANDLING OF THE DOOMED NOMINATION OF LANI GUINIER AS THE TOP CIVIL RIGHTS OFFICIAL AT THE JUSTICE DEPARTMENT SOME CONGRESSIONAL AIDES VIEWED THE FORMAL OPPOSITION TO THE FREETRADE AGREEMENT AS A SIGNAL BY THE CAUCUS THAT IT CAN BE A POLITICAL FORCE ON ISSUES AS FARFLUNG AS TRADE CAUCUS MEMBERS REJECTED THAT ANALYSIS HOWEVER AND SAID THEY OPPOSED THE TRADE PACT BECAUSE IT WOULDN'T CREATE AS MANY JOBS IN THE US AS INITIALLY THOUGHT THE CAUCUS INCLUDES 38 HOUSE MEMBERS AND DEMOCRATIC SEN CAROL MOSELEY BRAUN OF ILLINOIS THE OPPOSITION COMES AT A DELICATE TIME IN THE CLINTON ADMINISTRATION'S EFFORT TO WRAP UP TOUGH NEGOTIATIONS OVER THE AGREEMENT WHICH IS SUPPOSED TO DISMANTLE TRADE BARRIERS BETWEEN MEXICO CANADA AND THE US OVER THE NEXT 15 YEARS US NEGOTIATORS ARE TRYING TO FINISH SIDE AGREEMENTS INTENDED TO ENFORCE ENVIRONMENTAL AND LABOR STANDARDS 9306250061 930625 FOREIGN EXCHANGE DOLLAR RISES IN EUROPE MARKET EXPECTS COORDINATED INTERESTRATE REDUCTIONS BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR FIRMED AGAINST EUROPEAN CURRENCIES THURSDAY AFTER THE FRENCH ECONOMICS MINISTER RAISED MARKET EXPECTATIONS THAT COORDINATED CUTS IN EUROPEAN INTEREST RATES MIGHT BE POSSIBLE SOON THE US CURRENCY DROPPED MODESTLY AGAINST THE YEN AS THE MARKET IMPACT OF JAPAN'S POLITICAL EARTHQUAKE BEGAN TO WEAR OFF TRADERS SAID IN TOKYO EARLY FRIDAY THE DOLLAR WAS TRADING AT 10855 YEN AND AT 17065 MARKS TRADERS SAID COMMENTS FROM FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY WHICH RAISED EXPECTATIONS OF IMPENDING INTEREST RATE CUTS IN EUROPE TRIGGERED MOST OF THE DOLLAR'S GAINS AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES MR ALPHANDERY ANNOUNCED THAT GERMAN ECONOMICS MINISTER THEO WAIGEL AND DEUTSCHE BUNDESBANK PRESIDENT HELMUT SCHLESINGER WOULD COME TO PARIS TODAY FOR TALKS ON COORDINATED INTEREST RATE REDUCTIONS IN EUROPE THE MEETING LATER WAS POSTPONED WHEN THE NEWS OF THAT INVITATION GOT OUT PEOPLE GOT EXCITED ABOUT POSSIBLE RATE CUTS SAID ALEXIS MCCARTHY CORPORATE FOREIGN EXCHANGE TRADER AT BANQUE INDOSUEZ THE DOLLAR JUMPED TWO PFENNIGS AGAINST THE MARK IN THE TWO HOURS AFTER THE MARKET LEARNED OF MR ALPHANDERY'S REMARKS LOWER EUROPEAN INTEREST RATES WOULD TEND TO DIMINISH THE APPEAL OF EUROPEAN CURRENCIES TO INVESTORS DEALERS SAID SUBSEQUENT GERMAN EFFORTS TO PLAY DOWN THE SIGNIFICANCE OF MR ALPHANDERY'S COMMENTS HAD LITTLE IMPACT BECAUSE THE US CURRENCY IS IN THE MIDST OF AN UPTREND AND PEOPLE ARE LOOKING FOR EXCUSES TO BUY IT MS MCCARTHY SAID THE DOLLAR'S DROP AGAINST THE YEN THURSDAY OCCURRED BECAUSE THE MARKET HAS BEGUN TO PULL ITS FOCUS AWAY AT LEAST FOR THE MOMENT FROM THE POLITICAL TUMULT IN JAPAN DEALERS SAID THE SAME FACTOR CAN ONLY HAVE AN IMPACT FOR SO LONG SAID KEITH CHEVERALLS SENIOR FOREIGN EXCHANGE MANAGER AT NIPPON CREDIT BANK MARKET TALK THAT JAPANESE EXPORTERS ARE PREPARED TO SELL THE DOLLAR HEAVILY ABOVE 10950 YEN WEIGHED ON THE US CURRENCY HE ADDED IN ASIAN TRADING THE BANK OF JAPAN WAS RUMORED TO HAVE BOUGHT DOLLARS AROUND 10830 YEN TRADERS SAID THIS HAD HELPED BOOST THE DOLLAR FROM ITS INTRADAY LOWS AGAINST THE YEN LOOKING FORWARD DEALERS SAID THAT WITH NO MAJOR ECONOMIC DATA SCHEDULED FOR FRIDAY JAPANESE LOCAL ELECTIONS SUNDAY PROBABLY WILL BE THE NEXT EVENT WITH THE ABILITY TO GIVE NEW DIRECTION TO DOLLAR TRADING ALTHOUGH MR CHEVERALLS SAID HE IS UNSURE HOW THE MARKET WILL REACT TO THE RESULTS HE SAID PARTICIPANTS WILL LOOK AT THE BALLOTING FOR CLUES ABOUT THE OUTCOME OF NATIONAL PARLIAMENTARY ELECTIONS TO BE HELD JULY 18 AGAINST THE MARK THE DOLLAR IS LIKELY TO CONTINUE GAINING GROUND IN THE NEXT DAYS MS MCCARTHY SAID FOR NOW THE DOLLAR'S BULLISH TREND CAN BE SLOWED BUT IT CAN'T BE STOPPED SHE SAID 9306250060 930625 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHINA TIRE HOLDINGS LTD AN INITIAL OFFERING OF 61 MILLION COMMON SHARES VIA MORGAN STANLEY & CO FIRST BOSTON CORP AND SALOMON BROTHERS INC KAISER ALUMINUM CORP AN OFFERING OF ABOUT 171 MILLION DEPOSITARY SHARES VIA MERRILL LYNCH & CO KURZWEIL APPLIED INTELLIGENCE INC AN INITIAL OFFERING OF 21 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO LP AND NEEDHAM & CO LIFE MEDICAL SCIENCES INC AN OFFERING OF 200000 TO 500000 UNITS EACH CONSISTING OF TWO COMMON SHARES AND ONE REDEEMABLE CLASS A WARRANT WORDSTAR INTERNATIONAL INC A PROXY COVERING ITS PROPOSED MERGER WITH SOFTKEY SOFTWARE PRODUCTS INC 9306250059 930625 BANK REGULATORS CONSIDER FINES FOR LATE FILINGS WASHINGTON BANK REGULATORS UPSET BY ERRORS IN MORTGAGE LENDING REPORTS FROM BANKS ARE CONSIDERING IMPOSING CIVIL PENALTIES ON INSTITUTIONS THAT FILE LATE OR INACCURATE REPORTS OFFICIALS AT THE FEDERAL RESERVE BOARD THE FEDERAL DEPOSIT INSURANCE CORP AND THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THAT LATE AND INACCURATE FILINGS OF REPORTS REQUIRED UNDER THE HOME MORTGAGE DISCLOSURE ACT HAVE SLOWED PROCESSING OF THE DATA WHICH HAVE SHOWN WIDESPREAD RACIAL DISCRIMINATION IN LENDING OVER THE PAST TWO YEARS THE MORTGAGE DATA HAVE SHOWN THAT BLACKS ARE REJECTED FOR MORTGAGES ABOUT TWICE AS OFTEN AS WHITES AND HISPANIC APPLICANTS ABOUT 14 TIMES AS OFTEN A LOT OF THE TIME BETWEEN THE MARCH 1 DEADLINE FOR THE REPORTS AND THE RELEASE OF THE DATA IN SEPTEMBER OR OCTOBER COMES FROM THE NEED TO CLEAN UP THE DATA SAID STEPHEN CROSS THE DEPUTY COMPTROLLER OF THE CURRENCY FOR COMPLIANCE MR CROSS SAID THE REGULATORS ARE CONSIDERING IMPOSING PENALTIES THAT COULD START AT 100 A DAY FOR LATE FILINGS AND GO HIGHER DEPENDING ON THE CIRCUMSTANCES ANOTHER SCHEDULE OF PENALTIES WOULD APPLY TO INACCURATE REPORTS 9306250058 930625 TECHNOLOGY & HEALTH FCC SETS ASIDE PORTION OF AIRWAVES FOR WIRELESS COMMUNICATIONS SERVICES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION IN ITS FIRST VOTE ON A NEW GENERATION OF WIRELESS COMMUNICATIONS SERVICES SET ASIDE A PORTION OF THE AIRWAVES FOR ELABORATE PAGING SERVICES ELECTRONIC MAIL AND VOICE MAIL THE COMMISSION VOTING 30 ADOPTED A PLAN TO ALLOCATE THE SPECTRUM THAT WOULD ALLOW MANY COMPETITORS TO ENTER THE ARENA FOR THE NEW SERVICES THE PLAN CALLS FOR AWARDING 11 NATIONWIDE LICENSES 13 LICENSES WITHIN EACH OF 49 REGIONS AND 10 LOCAL LICENSES INCLUDING EIGHT THAT WOULD BE USED BY EXISTING PAGING COMPANIES THE NEW SERVICES WILL TRANSMIT DATA OVER THE AIR IN MUCH THE SAME WAY AS CONVERSATIONS ARE TRANSMITTED TODAY OVER CELLULAR PHONE NETWORKS HOWEVER UNLIKE CELLULAR NETWORKS THE NEW SERVICES WILL DIGITIZE INFORMATION INTO THE 1S AND 0S OF COMPUTER CODE MAKING TRANSMISSION FASTER AND MORE ACCURATE THE COMMISSION BELIEVES THE SERVICES WILL BOOST PRODUCTIVITY FOR BUSINESSES AND MAKE IT EASIER FOR INDIVIDUALS TO KEEP IN TOUCH IN A RELATED DECISION THE FCC AWARDED A SPECIAL PIONEER'S PREFERENCE TO MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP ESSENTIALLY ASSIGNING ONE OF THE NATIONWIDE LICENSES TO THE JACKSON MISS COMPANY MTEL'S SYSTEM IS EXPECTED TO BE IN OPERATION IN THE TOP 300 US MARKETS BY 1995 IT RELIES ON A WIRELESS NETWORK OF SOME 3000 BASE STATIONS AS WELL AS SATELLITE LINKS IN ADDITION THE NETWORK WILL BE CONNECTED TO THE PUBLIC TELEPHONE NETWORK JUST AS THE PHONE IS THE PRIME MEANS OF COMMUNICATION FOR THE CONVENTIONAL OFFICE THE NATIONWIDE WIRELESS NETWORK WILL BE A VITAL MEANS OF COMMUNICATION FOR THE VIRTUAL OFFICE OF TOMORROW SAID JAI P BHAGAT PRESIDENT OF MTEL'S MTEL TECHNOLOGIES INC THE UNIT THAT DEVELOPED THE TECHNOLOGY TO TRANSMIT DATA RAPIDLY OVER A NARROW CHANNEL MTEL'S NATIONWIDE WIRELESS NETWORK AUTOMATICALLY TRACKS DOWN A SUBSCRIBER TO DELIVER MESSAGES ELIMINATING THE NEED FOR CUSTOMERS TO LET THE NETWORK KNOW THEIR LOCATION DEMAND FOR WIRELESS COMMUNICATIONS PARTICULARLY WIRELESS DATA SERVICE IS MUSHROOMING AS BUSINESSES AND CONSUMERS SNAP UP LAPTOP AND PALM TOP COMPUTERS ONE RECENT ESTIMATE PREDICTED 13 MILLION PEOPLE WILL USE WIRELESS DATA SERVICES BY THE END OF THE DECADE INDEED THE WIRELESS REVOLUTION WHICH BEGAN WITH CELLULAR TELEPHONES MORE THAN A DECADE AGO NOW INCLUDES HANDHELD MESSAGING DEVICES KNOWN AS PERSONAL DIGITAL ASSISTANTS WHICH CAN SEND AND RECEIVE INFORMATION SPECIFICALLY THE FCC DESIGNATED THREE MEGAHERTZ OF THE RADIO SPECTRUM FOR WIRELESS DATA COMMUNICATIONS 901902 930931 AND 940941 MHZ AND THE COMMISSION SAID IT WILL RESERVE ONE MEGAHERTZ OF SPECTRUM FOR FUTURE CHANNELS UNDER THE NEW RULES LICENSES WILL BE AWARDED FOR 10YEAR PERIODS AND LICENSEES WILL BE UNDER DEADLINES TO BUILD THEIR SYSTEMS THE RULES ALLOW LICENSEES TO COMBINE AS MANY AS THREE CHANNELS A MOVE THE FCC SAID WILL GIVE A WIRELESS SERVICE THE CAPACITY TO PROVIDE A WIDE ARRAY OF ADVANCED SERVICES WITHOUT DESTROYING COMPETITION BUT THE COMMISSION ISN'T YET READY TO AWARD LICENSES CONGRESS THIS SUMMER IS EXPECTED TO PASS LEGISLATION THAT INCLUDES A PROVISION FOR AUCTIONING THE AIRWAVES MEANING THE FCC MUST ESTABLISH AUCTION PROCEDURES 9306250057 930625 MARKETING & MEDIA FOUR MEDIA CONCERNS JOIN IN OFFERING NEWS FOR GRADE SCHOOLS FOUR MEDIA CONCERNS SAID THEY FORMED A JOINT VENTURE TO PROVIDE NEWS AND CURRENTEVENTS VIDEOTAPES WALL POSTERS AND CLASSROOM WORKSHEETS FREE TO 2700 GRADE SCHOOLS NATIONWIDE BEGINNING IN SEPTEMBER PETRY INC SCOTT COMMUNICATIONS HUBBARD BROADCASTING INC AND CONUS COMMUNICATION CO ARE OFFERING THE SERVICE KNOWN AS KIDSNEWS SIX TIMES DURING THE SCHOOL YEAR WITH SPONSORS FOOTING THE BILL WHITTLE COMMUNICATIONS LP CURRENTLY IS THE ONLY MAJOR COMPANY PROVIDING VIDEO AND PRINT INSCHOOL ADVERTISERSPONSORED MEDIA KIDSNEWS WILL GIVE SPONSORS EXPOSURE THROUGH THREESECOND ANNOUNCEMENTS AT THE BEGINNING OF THE VIDEOS AND IN ADS PLACED ALONG THE BOTTOM THIRD OF THE POSTERS CURRENT SPONSORS ARE HASBRO INC HERSHEY FOODS CORP AND QUAKER OATS CO BY JANUARY MORE THAN 4000 SCHOOLS AND A TOTAL OF 225 MILLION CHILDREN ARE EXPECTED TO PARTICIPATE THE COMPANIES SAID 9306250056 930625 DECLINE IS SEEN IN LEVEL OF PERSONAL BANKRUPTCIES WASHINGTON THE AMERICAN BANKRUPTCY INSTITUTE PROJECTED A DECLINE IN CONSUMER BANKRUPTCY LEVELS THIS YEAR FOR THE FIRST TIME SINCE 1985 BREAKING WITH THE PATTERN OF EIGHT STRAIGHT RECORD YEARS OF FILINGS 1993 IS GOING TO SHOW DECLINE SAID SAM GERDANO ABI EXECUTIVE DIRECTOR WE'RE FINALLY SEEING THE ARRESTING OF AN EVERINCREASING TREND HE DIDN'T ESTIMATE A SPECIFIC FIGURE BUT SAID IT WILL BE BELOW THE 900874 FILINGS IN 1992 THE PROJECTION WAS BASED ON THE 207129 FILINGS IN THE FIRST THREE MONTHS OF 1993 DOWN FROM 212112 IN THE FINAL THREE MONTHS OF LAST YEAR EVEN SO MR GERDANO SAID WE'RE TALKING ABOUT VERY HIGH LEVELS AT THE BEGINNING OF THE 1980S FILINGS WERE UNDER 300000 A YEAR THE ABI AN ORGANIZATION OF LAWYERS AND OTHERS INVOLVED IN BANKRUPTCY PROCEEDINGS OBTAINED THE FIGURES FROM THE ADMINISTRATIVE OFFICE OF US COURTS 9306250055 930625 INTERNATIONAL UN CONFERENCE PLAGUED BY DEMANDS THAT RIGHTS MUST BOW TO NATIONAL GOALS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA WHEN THE UNITED NATIONS FIRST SUMMONED THE WORLD TO A CONFERENCE ON HUMAN RIGHTS LIBERTY AND DEMOCRACY WERE ON THE MARCH AND HOPES WERE HIGH THAT THE MEETING WOULD CREATE THE FRAMEWORK FOR A FREER MORE TOLERANT WORLD IN THE 21ST CENTURY BUT FOR THE PAST TWO WEEKS WITH NEARLY 180 NATIONS GATHERING ALONG THE DANUBE THE VISIONARIES HAVE BEEN FORCED TO TAKE THEIR EYES OFF THE FUTURE AND FOCUS ON A PRESENT STILL MARRED BY REPRESSION AT TIMES THEY HAVE EVEN HAD TO RETREAT TO THE PAST REFIGHTING BATTLES OVER PRESS FREEDOM AND RELIGIOUS TOLERANCE THAT WERE FOUGHT AT THE LAST INTERNATIONAL GATHERING ON HUMAN RIGHTS 25 YEARS AGO INSTEAD OF EXTENSIVELY DISCUSSING THE CREATION OF A UN HIGH COMMISSIONER TO SAFEGUARD HUMAN RIGHTS THE DELEGATES ARGUED MORE ABOUT WHAT CONSTITUTES A HUMAN RIGHT AND RATHER THAN RIDE THE MOMENTUM OF THE FALL OF COMMUNISM THE CONFERENCE HAS BEEN BOGGED DOWN BY A CABAL OF GOVERNMENTS SEEKING TO SUBVERT HUMAN RIGHTS TO NATIONAL INTERESTS ALL THE WHILE DELEGATES HAVE BEEN HAUNTED BY THE BLATANT HUMAN RIGHTS ABUSES OCCURRING JUST A ONEHOUR FLIGHT AWAY IN BOSNIAHERZEGOVINA IF THIS MEETING IS SUPPOSED TO BE SETTING THE TONE FOR THE HUMAN RIGHTS DEBATE FOR THE NEXT 25 YEARS IT ISN'T SENDING A GOOD SIGNAL SAYS ANITA TIESSEN A SPOKESWOMAN FOR AMNESTY INTERNATIONAL WHICH WON THE 1977 NOBEL PEACE PRIZE FOR ITS HUMAN RIGHTS CAMPAIGNS STILL WHEN THE CONFERENCE ENDS TODAY HUMAN RIGHTS ADVOCATES WILL BE ABLE TO CLAIM SOME VICTORIES WELLORGANIZED LOBBYING BY WOMEN'S GROUPS FROM ALL POINTS ON THE GLOBE TRAINED A SPOTLIGHT ON VIOLENCE AND DISCRIMINATION AGAINST WOMEN AS VIOLATIONS OF HUMAN RIGHTS THE MEETING GAVE REPRESSED PEOPLES AND HUMAN RIGHTS CRUSADERS UNPRECEDENTED ACCESS TO GOVERNMENTS AND THE PUBLIC AND THE US AND OTHER WESTERN COUNTRIES WERE ABLE TO PUT REPRESSIVE GOVERNMENTS ON NOTICE THAT DEVELOPMENT AID WOULD BE MORE CLOSELY LINKED TO HUMAN RIGHTS RECORDS GOVERNMENTS HAVE HAD TO TAKE NOTE OF THE WORLDWIDE MOVEMENT OF HUMAN RIGHTS AND DEMOCRACY IN THE LAST FIVE OR SIX YEARS SAYS JOHN SHATTUCK US ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS THIS MOVEMENT PRESENTS MORE CAUSE FOR HOPE THAN THIS CONFERENCE DOES WHILE THE END OF THE COLD WAR HAS ERASED THE OLD EASTWEST DIVIDE THAT USED TO BEDEVIL HUMAN RIGHTS CONVENTIONS THIS CONFERENCE HAS HIGHLIGHTED THE SPLIT BETWEEN COUNTRIES THAT SUPPORT THE UNIVERSALITY OF HUMAN RIGHTS AND THOSE THAT INSIST THAT HUMAN RIGHTS ARE SUBJECT TO CULTURAL HISTORICAL AND NATIONAL INTERESTS IN OTHER WORDS OFTEN THE WHIMS OF A GOVERNMENT THERE ARE NO ABSOLUTE INDIVIDUAL RIGHTS AND FREEDOM EXCEPT THOSE PRESCRIBED BY AND WITHIN THE FRAMEWORK OF LAW CHINA'S DEPUTY FOREIGN MINISTER LIU HUAQIU TOLD THE CONFERENCE NOBODY SHALL PLACE HIS OWN RIGHTS AND INTERESTS ABOVE THOSE OF THE STATE AND SOCIETY HE SAID ALTHOUGH THE DIPLOMATIC RULES OF THE CONFERENCE PROHIBIT FINGERPOINTING WESTERN DELEGATES AND HUMAN RIGHTS ACTIVISTS BLAME A GROUP OF COUNTRIES WITH TRYING TO UNDERMINE THE UNIVERSALITY PRINCIPLE AND SEEKING TO SABOTAGE MOVES TO STRENGTHEN THE UN'S HUMAN RIGHTS ENFORCEMENT MACHINERY THESE INCLUDE CHINA CUBA SYRIA IRAN VIETNAM PAKISTAN MALAYSIA SINGAPORE YEMEN AND INDONESIA IT WAS THIS GROUP THAT ENGINEERED A REWRITING OF THE SECTION ON PRESS FREEDOM SHACKLING IT TO NATIONAL LAW SOME OF THESE COUNTRIES NOTABLY IRAN PUSHED TO REMOVE WORDING CONDEMNING ANTISEMITISM AND RELIGIOUS EXTREMISM AND CHINA BEGAN THE CONFERENCE BY BARRING THE DALAI LAMA THE EXILED TIBETAN LEADER FROM ADDRESSING THE GATHERING AT THE SAME TIME CHINA PRESSED ON WITH ITS CAMPAIGN TO WIN THE 2000 OLYMPICS FOR BEIJING ILLUSTRATING THE GAP BETWEEN THE HIGHMINDED PRINCIPLES OF THE CONFERENCE AND REALITY WESTERN ATTEMPTS TO USE CHINA'S HUMAN RIGHTS RECORD TO TORPEDO BEIJING'S BID WERE UNACCEPTABLE SAID A CHINESE MEMBER OF THE INTERNATIONAL OLYMPIC COMMITTEE BECAUSE THEY REPRESENT AN ATTACK ON OLYMPIC PRINCIPLES THE CLASH BETWEEN PRINCIPLES AND REALITY ALSO SURFACED OVER BOSNIA IN THE CONFERENCE HALL DELEGATES CLUMSILY DANCED AROUND THE NOFINGERPOINTING RULE WRANGLING OVER HOW TO CONDEMN THE ETHNIC FIGHTING FINALLY LAST NIGHT THE CONFERENCE VOTED 881 TO DEPLORE THE UN'S FAILURE TO STOP SERBIAN AGGRESSION AND CROATIAN EXTREMISM AND TO DEMAND THAT THE UN LIFT THE ARMS EMBARGO AGAINST THE MUSLIMS THE US AND OTHER WESTERN COUNTRIES ABSTAINED INSISTING THAT THE RESOLUTION SPONSORED BY ISLAMIC COUNTRIES EXCEEDED THE MANDATE OF THE CONFERENCE RUSSIA VOTED AGAINST IT MEANWHILE IN THE BASEMENT OF THE CONFERENCE CENTER BOSNIAN REFUGEES HANDED OUT NOTICES OF A PUBLIC MEETING RAPE IN BOSNIA HEAR CHILLING TESTIMONIES FROM BOSNIAN WOMEN 9306250054 930625 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALABAMA POWER CO 150 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY LEHMAN BROTHERS ISSUE WAS REOFFERED AS 745S AT 98737 TO YIELD 7557 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP BALTIMORE GAS & ELECTRIC CO 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 1 2003 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY CITICORP SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THEY WERE REOFFERED AS 6125S AT 98827 TO YIELD 6285 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0425 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P BANKERS TRUST NEW YORK CORP 300 MILLION OF SENIOR NOTES DUE JULY 1 1996 PRICED AS 47S AT 99861 TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 31 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CBI INDUSTRIES INC 75 MILLION OF SENIOR NOTES DUE JUNE 30 2000 PRICED AS 625S AT 99604 TO YIELD 6321 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO COMMONWEALTH EDISON CO 375 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS DUE JULY 1 2005 AND JULY 1 2013 PRICED TO YIELD 7009 AND 7611 RESPECTIVELY ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 225 MILLION WAS PRICED AS 7S AT 98867 TO YIELD 7009 THE BONDS WERE PRICED AT A SPREAD OF 115 BASIS POINTS OVER THE 10YEAR TREASURY THE SECOND PART 150 MILLION WAS PRICED AS 75S AT 98867 TO YIELD 7611 THE SPREAD OVER THE 30YEAR TREASURY WAS 875 BASIS POINTS THE BONDS ARE NONCALLABLE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DELMARVA POWER & LIGHT CO 90 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2003 PRICED AS 64S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 54 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ENVIROSOURCE INC 220 MILLION OF SENIOR NOTES DUE JUNE 15 2003 PRICED AS 975S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS THEN CALLABLE AT A PRICE OF 104875 RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF STEPUP DEBENTURES DUE JULY 7 1998 PRICED AT PAR WITH AN INITIAL COUPON OF 48 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR TWO YEARS INCREASE TO A COUPON RATE OF 58 ON JULY 7 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MEDIUMTERM NOTES DUE JULY 1 1998 PRICED AT PAR TO YIELD 532 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GENERAL ELECTRIC CAPITAL CORP 100 MILLION OF MEDIUMTERM NOTES DUE JULY 1 1994 PRICED AS 35S AT 99941 TO YIELD 3561 ACCORDING TO MCM CORPORATEWATCH THE FIRST INTEREST PAYMENT IS DUE JAN 1 1994 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE THE COMPARABLE TREASURY RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO GECC IS A SUBSIDIARY OF GENERAL ELECTRIC CO KANSAS CITY SOUTHERN INDUSTRIES INC 100 MILLION OF SENIOR NOTES DUE JULY 8 1998 PRICED AS 575S AT 99623 TO YIELD 5838 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 066 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KROGER CO 200 MILLION OF SENIOR SECURED NOTES DUE JUNE 15 2003 PRICED AS 85S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MERRILL LYNCH & CO 250 MILLION OF MEDIUMTERM FLOATINGRATE NOTES DUE JULY 7 1994 PRICED AS 35S AT 99941 TO YIELD 3561 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL FLOAT DAILY AND PAY QUARTERLY AT 20 BASIS POINTS OVER THE FEDERAL FUNDS RATE WHICH IS CURRENTLY 30625 RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH MERRILL LYNCH & CO 250 MILLION OF MEDIUMTERM NOTES DUE JULY 20 1994 FLOATING AT FIVE BASIS POINTS UNDER THE THREEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THREEMONTH LIBOR IS CURRENTLY 3375 THE NOTES WILL FLOAT AND PAY QUARTERLY RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD BY MERRILL LYNCH OHIO EDISON CO 75 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 15 2023 PRICED AS 7625S AT 9905 TO YIELD 7706 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 97 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WEYERHAEUSER CO 250 MILLION OF DEBENTURES DUE JULY 1 2013 PRICED AS 725S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE 30YEAR TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ELECTROGLAS INC INITIAL OFFERING OF 62 MILLION COMMON SHARES OF THIS GENERAL SIGNAL CORP UNIT PRICED AT 16 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS KAISER ALUMINUM CORP 171 MILLION DEPOSITARY SHARES PRICED AT 725 APIECE THROUGH UNDERWRITERS MERRILL LYNCH & CO BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP PAINEWEBBER INC AND SALOMON BROTHERS INC MERCHANTS GROUP INC 19 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES PUGET SOUND POWER & LIGHT THREE MILLION COMMON SHARES PRICED AT 27875 A SHARE THROUGH UNDERWRITERS LED BY PIPER JAFFRAY STANDARD PRODUCTS CO 14 MILLION COMMON SHARES PRICED AT 3225 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP VYSTAR GROUP INC AND MEGAHERTZ CORP FOUR MILLION COMMON SHARES OF A COMPANY FORMED BY THE MERGER OF THE TWO AT A PRICE OF 1350 APIECE THROUGH SALOMON BROTHERS INC COWEN & CO AND NOMURA SECURITIES INTERNATIONAL INC WELLSFORD RESIDENTIAL PROPERTY TRUST 25 MILLION SHARES OF BENEFICIAL INTEREST PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH LOS ANGELES UNIFIED SCHOOL DISTRICT 500 MILLION TAX AND REVENUE ANTICIPATION NOTES PRICED BY A GOLDMAN SACHS & CO GROUP THE NOTES WHICH HAVE A 3 COUPON ARE PRICED AT 100252 AND WILL YIELD 275 ON JULY 15 1994 MOODY'S HAS RATED THE OFFERING MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING NEW JERSEY HIGHWAY AUTHORITY 1167 MILLION 1993 SERIES SENIOR PARKWAY REVENUE REFUNDING BONDS FOR GARDEN STATE PARKWAY APPARENTLY WON BY A JP MORGAN SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 48887 YIELDS RANGE FROM 22 IN 1994 TO 52 IN 2008 AND 2009 THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1561 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1559 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE COUPON RATE AND THE WEIGHTED AVERAGE REMAINING TERM TO MATURITY WERE NOT GIVEN FEDERAL HOME LOAN MORTGAGE CORP 352 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1555 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 147 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1560 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS CREDIT FONCIER DE FRANCE FRENCH AGENCY THREE BILLION FRENCH FRANCS OF 675 EUROBONDS DUE JULY 21 2003 AT ISSUE AND REOFFER PRICE 9845 VIA CREDIT LYONNAIS BONDS YIELD 697 ANNUAL A SPREAD OF 27 BASIS POINTS ABOVE 675 OBLIGATIONS ASSIMABLES DU TRESOR DUE 2003 FEES 0325 POINT CREDIT LYONNAIS FRANCE THREE BILLION FRENCH FRANCS OF 7 EUROBONDS DUE JULY 19 2002 AT ISSUE AND REOFFER PRICE 9755 VIA CREDIT LYONNAIS BONDS YIELD 738 ANNUAL A SPREAD OF 70 BASIS POINTS ABOVE 85 OBLIGATIONS ASSIMABLES DU TRESOR DUE 2002 FEES 0375 POINT EMPRESA COLOMBIANA DE PETROLIOS COLOMBIA 150 MILLION OF 725 EUROBONDS DUE JULY 8 1998 AT ISSUE AND REOFFER PRICE 99629 VIA BANKERS TRUST INTERNATIONAL BONDS YIELD 734 A MARGIN OF 218 BASIS POINTS OVER 5125 US TREASURY DUE JUNE 1998 FEES 0875 POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 MILLION OF 8 EUROBONDS DUE JUNE 10 2003 AT ISSUE AND REOFFER PRICE 101131 VIA SALOMON BROTHERS INTERNATIONAL BONDS YIELD 7827 FLAT WITH 8 GILT DUE 2003 ISSUE WILL TRADE INTERCHANGEABLY WITH 600 MILLION OF IDENTICAL OUTSTANDING NOTES FEES 0325 POINT KNP BT ANTILLIANA NV SPECIALPURPOSE VEHICLE 200 MILLION MARKS OF 7 EUROBONDS DUE AUG 3 1998 AT ISSUE PRICE 100218 VIA BERLINER HANDELSUND FRANKFURTER BANK BONDS YIELD 704 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS A SPREAD OF 76 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR NV KNP BT FEES 25 POINTS FOR LEAD MANAGERS 23 POINTS FOR COMANAGERS LANDESBANK SCHLESWIGHOLSTEIN GERMAN AGENCY 100 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JULY 15 2003 VIA TRINKAUS & BURKHARDT KGAA NOTES PAY 9 COUPON AFTER FIRST YEAR THEREAFTER INTEREST FLOATS AT 1275 MINUS SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS FEES 03 POINT MUNICIPALITY OF METROPOLITAN TORONTO CANADA 100 MILLION CANADIAN DOLLARS OF 8 EUROBONDS DUE JULY 22 2003 AT ISSUE PRICE 100875 VIA RBC DOMINON SECURITIES INTERNATIONAL LTD REOFFERED AT 9925 TO YIELD 7954 SEMIANNUAL A MARGIN OF 53 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO POINTS OKOBANK FINLAND 150 MILLION OF FLOATINGRATE EURONOTES DUE JULY 1995 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR DOLLARS PLUS 05 POINT FEES 02 POINT PRUDENTIAL FUNDING CORP US PARENT C150 MILLION OF 7 EUROBONDS DUE AUG 10 1998 AT ISSUE PRICE PAR VIA HAMBROS BANK LTD REOFFERED AT 9845 TO YIELD 738 A MARGIN OF ABOUT 50 BASIS POINTS ABOVE GOVERNMENT OF CANADA'S 65 NOTE DUE AUGUST 1998 FEES 1875 POINTS SOCIETE NATIONALE DES CHEMINS DE FER FRANCE 10 BILLION SPANISH PESETAS OF 97 MATADOR BONDS DUE JULY 20 1998 AT ISSUE PRICE 10155 VIA BANCO CENTRALE HISPANO AMERICANO SA BONDS YIELD 969 ANNUAL AT 10005 BREAKEVEN PRICE FOR COMANAGERS FEES 1625 POINTS FOR LEAD MANAGERS 15 POINTS FOR COMANAGERS OLIVER CORP JAPAN 50 MILLION SWISS FRANCS 1125 NOTES WITH WARRANTS DUE JULY 15 1997 VIA NOMURA BANK SWITZERLAND LTD AT ISSUE PRICE 100 IN PRIVATE PLACEMENT 9306250053 930625 INTERNATIONAL RUSSIAN OFFICIAL POSTPONES TRIP TO WASHINGTON BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUSSIAN PRIME MINSTER VIKTOR CHERNOMYRDIN HAS POSTPONED A TRIP TO WASHINGTON AFTER THE US AND RUSSIA AGAIN FAILED TO SETTLE A DISPUTE OVER RUSSIAN ROCKET TECHNOLOGY SALES TO INDIA THE US HAS WARNED THAT THE ROCKET ENGINES AND OTHER TECHNOLOGY COULD BE USED IN OFFENSIVE MISSILES AND SAID THAT THE SALES VIOLATE PROLIFERATION CONTROLS RUSSIA MEANWHILE HAS COMPLAINED THAT THE US IS TRYING TO KEEP IT OUT OF THE WORLD'S HIGH TECHNOLOGY MARKET THE TIMING OF THE DISPUTE IS ESPECIALLY EMBARRASSING BECAUSE IT COMES JUST TWO WEEKS BEFORE PRESIDENT CLINTON IS TO ATTEND A SUMMIT MEETING OF THE GROUP OF SEVEN INDUSTRIAL NATIONS IN TOKYO WHERE HE WILL PRESS US ALLIES FOR NEW ECONOMIC AID TO RUSSIA IN HOPES OF SETTLING THE DISPUTE BEFORE THEN US OFFICIALS SAY THE US MAY SEND A SPECIAL ENVOY TO MOSCOW OR INVITE A RUSSIAN REPRESENTATIVE TO WASHINGTON TO CONTINUE NEGOTIATIONS IN COMING DAYS MR CHERNOMYRDIN WAS TO ARRIVE IN WASHINGTON SATURDAY TO DISCUSS A VARIETY OF ENERGY AND SPACE COOPERATION PROJECTS WE DECIDED WE JUST COULDN'T GO AHEAD WITH THESE NEW PROJECTS UNTIL THE MISSILE QUESTION WAS RESOLVED SAID A SENIOR US OFFICIAL IT'S NOT A MAJOR CRISIS BUT IT IS WORRISOME THE BUSH ADMINISTRATION FIRST OBJECTED TO THE SALES TO INDIA LAST SPRING OFFICIALS SAY PRESIDENT CLINTON THOUGHT HE HAD SETTLED THE PROBLEM DURING THE APRIL VANCOUVER SUMMIT WHEN RUSSIAN PRESIDENT BORIS YELTSIN APPEARED TO AGREE TO IMPOSE RESTRICTIONS ON INDIA'S USE OF THE TECHNOLOGY BUT THAT AGREEMENT DID NOT HOLD OFFICIALS SAY WHILE THIS WEEK'S DISPUTE IS FOCUSED ON THE SALES TO INDIA US OFFICIALS HAVE ALSO EXPRESSED CONCERN ABOUT RUSSIAN SALES OF CIVILIAN NUCLEAR REACTOR TECHNOLOGY AND SUBMARINES TO IRAN AND RUSSIA'S RECENT ATTEMPT TO SHIP THE INGREDIENTS FOR ROCKET FUEL TO LIBYA BY LAW THE CLINTON ADMINISTRATION MUST SUSPEND DEVELOPMENT AID TO RUSSIA IF MOSCOW VIOLATES WEAPONS PROLIFERATION CONTROLS US OFFICIALS SAID YESTERDAY THAT THEY DID NOT EXPECT THE DISPUTE TO COME TO THAT 9306250052 930625 BUSINESS BRIEF STANLEY WORKS STOCK SLIDES 77 ON FORECAST FOR LOWER 2NDPERIOD PROFIT SHARES OF STANLEY WORKS SLID 77 YESTERDAY AFTER THE NEW BRITAIN CONN COMPANY SAID SECONDQUARTER EARNINGS WILL BE LOWER THAN THE YEAREARLIER QUARTER'S RESULTS ON WEAKERTHANEXPECTED SALES THE PRODUCER OF TOOLS AND HARDWARE BLAMED SLUGGISH CONSUMER SALES ONAGAIN OFFAGAIN HOUSING ACTIVITY AND LACKLUSTER INDUSTRIAL PRODUCTION AND FURTHER WEAKNESS IN EUROPEAN MARKETS IN THE 1992 SECOND QUARTER STANLEY EARNED 288 MILLION OR 63 CENTS A SHARE ON REVENUE OF 5609 MILLION STANLEY'S SHARES CLOSED AT 41875 DOWN 350 IN TRADING ON THE NEW YORK STOCK EXCHANGE WE HAD BEEN EXPECTING SALES TO IMPROVE DURING THE QUARTER WITH A CORRESPONDING IMPROVEMENT IN MARGINS RICHARD H AYERS CHAIRMAN AND CHIEF EXECUTIVE SAID BUT THIS HAS NOT BEEN THE CASE AND WE NOW BELIEVE THAT THE MINOR SALES GAINS AND NEGLIGIBLE PRICE INCREASES WILL RESULT IN WEAK MARGINS AND EARNINGS BELOW LAST YEAR'S SECOND QUARTER 9306250051 930625 BUSINESS BRIEF HERCULES INC COMPANY DIVESTS ITSELF OF STAKE IN AUSTRALIAN FIRM HERCULES INC SAID IT HAS DIVESTED ITSELF OF ITS 63 STAKE IN AUSTRALIAN CHEMICAL HOLDINGS LTD OF BOTANY NEW SOUTH WALES AUSTRALIA THE WILMINGTON DEL PRODUCER OF CHEMICALS AND RELATED PRODUCTS AND SOLID FUEL SYSTEMS SAID THE STOCK WAS SOLD ON THE AUSTRALIAN STOCK EXCHANGE THROUGH THE OPEN MARKET HERCULES SAID IT WILL RECEIVE MORE THAN 50 MILLION IN PROCEEDS FROM THE SALE WHICH WILL RESULT IN A GAIN IN THE SECOND QUARTER IN THE SECOND QUARTER OF 1992 HERCULES EARNED 432 MILLION OR 93 CENTS A SHARE HERCULES SAID THE DIVESTITURE IS IN KEEPING WITH ITS STRATEGIES OF FOCUSING ON ITS CORE BUSINESS FRANCHISES IN KEY TARGETED WORLD AREAS IT SAID THAT ALTHOUGH AUSTRALIAN CHEMICAL HAS BEEN A PROFITABLE PART OF ITS BUSINESS PORTFOLIO SINCE 1962 THE OPPORTUNITY TO DIVEST THE STAKE CREATES GREATER VALUE FOR HERCULES SHAREHOLDERS THAN IF WE HAD REMAINED THE MAJORITY OWNER IN THAT COMPANY 9306250050 930625 BUSINESS BRIEF INTERPROVINCIAL PIPE LINE SYSTEM INC CANADIAN CONCERN WILL SEEK EXPANSION TO BOOST CAPACITY INTERPROVINCIAL PIPE LINE SYSTEM INC SAID IT WILL SEEK CANADIAN REGULATORY APPROVAL FOR A 275 MILLION CANADIAN DOLLAR US2148 MILLION EXPANSION OF ITS CRUDE OIL AND LIQUIDS PIPELINE SYSTEM THAT WOULD ADD 110000 BARRELS A DAY TO ITS TRANSMISSION CAPACITY THE EDMONTON ALBERTA COMPANY IS EXPECTED TO FILE THE APPLICATION WITH THE NATIONAL ENERGY BOARD ON WEDNESDAY INTERPROVINCIAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BRIAN F MACNIELL SAID HE EXPECTS THE NEW FACILITIES TO BE IN SERVICE BY THE END OF 1994 MR MACNEILL SAID INTERPROVINCIAL IS RESPONDING TO THE NEEDS OF WESTERN CANADIAN OIL SHIPPERS WHO DURING THE PAST 2 1/2 YEARS HAVE ASKED INTERPROVINCIAL TO TRANSPORT VOLUMES OF OIL IN EXCESS OF THE PIPELINE'S CAPACITY FORCING THE COMPANY TO APPORTION AVAILABLE SPACE INTERPROVINCIAL SAID THE PROGRAM SHOULD ALSO HELP WESTERN CANADIAN PRODUCERS RECEIVE FULL VALUE FOR THEIR OIL IN THE US MIDWEST MARKET AT PRESENT BUYERS IN THE MIDWEST DISCOUNT THE PRICE PARTLY BECAUSE THE PIPELINE CAPACITY SHORTAGE CAUSES DELIVERY UNCERTAINTIES 9306250049 930625 ADVERTISING STUDIOS BATTLE CLUTTER OF TV MOVIE SPOTS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD DOES IT SEEM LIKE THERE'S A COMMERCIAL FOR A MOVIE EVERY TIME YOU TURN ON THE TV SET WITH MORE THAN 60 FILMS SET TO BE RELEASED THIS SUMMER UP FROM THE USUAL 40 STUDIOS ARE SPENDING HEAVILY TO PUSH THEIR FILMS ON TV THE GLUT OF FILMS HAS THUS CREATED A GLUT OF MOVIE ADVERTISING AND HOLLYWOOD MARKETING EXECUTIVES ARE NERVOUS THAT THEIR MESSAGES WON'T BREAK THROUGH THE CLUTTER IF THE AIRWAVES SEEM CROWDED NOW WAIT UNTIL NEXT MONTH ALMOST NO ONE WAS GUTSY ENOUGH TO OPEN FILMS AGAINST JURASSIC PARK OR LAST ACTION HERO THIS MONTH SO THE BULK OF SUMMER FILMS ARE ON TAP FOR JULY AND AUGUST WHEN AS MANY AS SIX MAJOR FILMS WILL OPEN ON A SINGLE WEEKEND IT ISN'T IDEAL WHEN YOU THINK THAT SOMEONE IS SPENDING THE NIGHT AT HOME WATCHING TV AND IS SEEING EIGHT OR NINE MOVIE SPOTS SAYS BUFFY SHUTT PRESIDENT OF MARKETING AT SONY CORP'S TRISTAR PICTURES UNIT STUDIOS SPEND MORE MONEY ON TV ADVERTISING THAN THEY DO ON ANY OTHER ASPECT OF A FILM'S MARKETING CAMPAIGN WITH THE IDEA THAT IT'S THE BEST WAY TO REACH A BROAD AUDIENCE FILM COMPANIES CAN EASILY SPEND 8 MILLION OR SO ON TV ADS FOR AN AVERAGE MOVIE MORE FOR BIGTICKET PICTURES LIKE CLINT EASTWOOD'S IN THE LINE OF FIRE WHICH WILL BE RELEASED NEXT MONTH OR THE FUGITIVE AN AUGUST MOVIE THAT STARS HARRISON FORD PROBLEM IS ALL THE STUDIOS PLACE SPOTS IN THE SAME PROGRAMS ON WEDNESDAY AND THURSDAY NIGHTS WHEN MOVIEGOERS ARE DECIDING WHICH FILMS TO SEE THAT WEEKEND SHOWS LIKE SEINFELD HOME IMPROVEMENT AND BEVERLY HILLS 90210 ARE SO JAMMED WITH MOVIE ADS THAT THE SPOTS HAVE TURNED INTO A VIRTUAL BLUR STUDIO EXECUTIVES ARE LOOKING FOR ALTERNATIVES MS SHUTT SAYS TRISTAR IN SOME INSTANCES IS BEGINNING TV AD CAMPAIGNS EARLY TRADITIONALLY STUDIOS RUN COMMERCIALS ONLY TWO WEEKS BEFORE A MOVIE'S OPENING BUT FOR TWO OF ITS SUMMER MOVIES TRISTAR RAN SPECIAL ADS WAY BACK IN JANUARY A SPOT FOR CLIFFHANGER RAN ON THE SUPER BOWL AND SLEEPLESS IN SEATTLE WHICH OPENS TODAY WAS PROMOTED DURING INAUGURAL CEREMONIES THE IDEA MS SHUTT SAYS IS TO PLANT THE SEED IN SPECIAL EVENT PROGRAMMING AND THEN COME BACK IN THE WEEKS BEFORE THE MOVIE'S OPENING WITH THE REGULAR AD ASSAULT NEWS CORP'S FOX STUDIO IS DOING THE SAME THING WITH ITS SEAN CONNERY/WESLEY SNIPES THRILLER RISING SUN THE MOVIE DOESN'T OPEN UNTIL JULY 30 BUT THE STUDIO STARTED ITS CAMPAIGN A COUPLE OF WEEKS AGO WITH TV ADS IN THE NBA FINALS THAT'S PROBABLY THE SIMPLEST OPTION BUT EXECUTIVES SAY THERE HAVE GOT TO BE OTHERS ARTHUR COHEN PRESIDENT OF WORLDWIDE MARKETING AT PARAMOUNT PICTURES SAYS HIS STUDIO IS TAKING A VERY HARD LOOK AT COMMERCIAL LENGTH HE SAYS PARAMOUNT A UNIT OF PARAMOUNT COMMUNICATIONS INC WILL TRY TO GRAB MOVIEGOERS' ATTENTION FOR ITS TOM CRUISE MOVIE THE FIRM BY RUNNING AN UNUSUAL NUMBER OF 15SECOND COMMERCIALS INSTEAD OF THE STANDARD 30SECOND ONES THE SHORTER ADS OFFER MORE FREQUENCY SO YOU HAVE MORE OF A PRESENCE FOR THE SAME DOLLAR HE SAYS AT MANY STUDIOS THE BURDEN IS FALLING ON THE ADS THEMSELVES TOO MANY MOVIE ADS JUST AREN'T THAT GOOD STUDIO EXECUTIVES SAY AND MEDIOCRITY CAN'T BE TOLERATED IN SUCH A CROWDED ENVIRONMENT YOU BECOME MUCH MORE VICIOUS ABOUT WHAT YOU WILL LET THROUGH CREATIVELY MR COHEN SAYS ADDS SID GANIS PRESIDENT OF MARKETING AND DISTRIBUTIONT SONY'S COLUMBIA PICTURES WE JUST HAVE TO BE EVEN MORE CLEVER IN OUR PRESENTATION THAN THE NEXT GUY IN PUTTING TOGETHER ADS FOR ITS COMING JOHN SINGLETON MOVIE POETIC JUSTICE MR GANIS SAYS COLUMBIA TRIED TO ZERO IN ON WHAT MAKES THE FILM UNIQUE THE RESULT IS QUICKCUTTING MTVSTYLED COMMERCIALS WITH FUNKY GRAPHICS HIP MUSIC AND SEXY SHOTS OF JANET JACKSON WHO IS MAKING HER ACTING DEBUT THESE ADS WILL BREAK THROUGH THE CLUTTER MR GANIS PROMISES HOLLYWOOD'S INDEPENDENT FILM COMPANIES ALSO ARE RELEASING A RECORD NUMBER OF FILMS THIS SUMMER AND THEY FACE THE ADDED PROBLEM OF NOT HAVING THE SAME BIG BUDGETS THAT THE MAJOR STUDIOS DO NEW LINE CINEMA FOR ONE SAYS IT IS GOING TO TRY TO STAY OFF NETWORK TV AS MUCH AS IT CAN BECAUSE IT JUST CAN'T COMPETE CHRIS PULA NEW LINE'S PRESIDENT OF THEATRICAL MARKETING BOASTS THAT THE COMPANY SPENT JUST 19 MILLION ON MEDIA TO OPEN ITS FILM MENACE II SOCIETY AN URBAN DRAMA THE MOVIE PLAYING ON 610 SCREENS IS DOING WELL AND MR PULA CREDITS THE NARROWLY CAST CAMPAIGN THAT WAS STARTED IN PART WITH ADS ON THE BLACK ENTERTAINMENT TELEVISION CABLE NETWORK SOME PEOPLE SAY BET ISN'T A VERY STRONG TOOL COMPARED TO NETWORK TV BECAUSE IT ONLY REACHES 30 MILLION HOMES MR PULA SAYS BUT THEY ARE 30 MILLION VERY EFFICIENT HOMES AND OUR TARGET IS WATCHING MIRAMAX FILMS WHICH RECENTLY AGREED TO BE ACQUIRED BY WALT DISNEY CO BOUGHT ADS ON THE TELEMUNDO SPANISHLANGUAGE CABLE NETWORK TO PROMOTE ITS FOREIGNLANGUAGE HIT FILM LIKE WATER FOR CHOCOLATE BUT LIKE NEW LINE MIRAMAX IS TRYING TO STEER CLEAR OF THE NATIONAL AD BATTLE IT'S IMPOSSIBLE TO OUTSHOUT THE COMPETITION SAYS GERRY RICH SENIOR VICE PRESIDENT OF MARKETING INSTEAD HE SAYS MIRAMAX IS PUMPING MORE DOLLARS INTO BUYING NEWSPAPER ADS TO PROMOTE THE FILM MANY MOVIE EXECUTIVES BELIEVE NEWSPAPER ADS HAVE LIMITED VALUE IN CONVINCING PEOPLE TO SEE A PARTICULAR MOVIE BUT MR RICH DISAGREES I REALLY BELIEVE THAT THIS AUDIENCE READS THE NEWSPAPER BESIDES HE ADDS THIS FILM SUCCEEDS BECAUSE IT'S THE ULTIMATE WORDOFMOUTH MOVIE PEOPLE COME OUT OF THEATERS RAVING ABOUT IT AND THAT'S A LOT MORE INFLUENTIAL TO OUR CROWD THAN ANY TV AD IN THE MIDST OF A REVIEW OF ITS BIG PERSONALCOMPUTER ACCOUNT INTERNATIONAL BUSINESS MACHINES CORP IS SET TO AIR NEW SPOTS IN ITS SEPARATE CORPORATE CAMPAIGN TAGGED THERE'S NEVER BEEN A BETTER TIME TO DO BUSINESS WITH IBM THE NEW CORPORATE SPOTS FROM WELLS RICH GREENE BDDP OF NEW YORK FEATURE UNIDENTIFIED EMPLOYEES OF COMPANIES INCLUDING NIKE INC NINTENDO OF AMERICA TOWER RECORDS A UNIT OF MTS INC AND HARLEYDAVIDSON INC THE EMPLOYEES SOME REAL SOME ACTORS FACE THE CAMERA AND GIVE TESTIMONIALS ABOUT THEIR EXPERIENCES AS IBM CUSTOMERS THE FIRST SPOTS BREAK TOMORROW DURING TELEVISION COVERAGE OF THE WIMBLEDON TENNIS TOURNAMENT IBM SAID THE 30SECOND SPOTS WILL RUN THROUGHOUT THE YEAR DURING NETWORK AND CABLE NEWS AND SPORTS PROGRAMS AS WELL AS DURING SOME PRIMETIME PROGRAMS INTERPUBLIC GROUP'S LINTAS IS THE INCUMBENT ON THE PC ACCOUNT ARNOLD FORTUNA LAWNER & CABOT OF BOSTON SAID IT HAS SIGNED A LETTER OF INTENT TO ACQUIRE INTERPUBLIC GROUP'S HAWLEY MARTIN PARTNERS OF RICHMOND VA TERMS WEREN'T DISCLOSED ED ESKANDARIAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ARNOLD FORTUNA SAID HE WOULD MERGE THE HAWLEY AGENCY WITH FINNEGAN & AGEE A RICHMOND AGENCY THAT HIS AGENCY ACQUIRED IN JANUARY THE COMBINED AGENCY WILL BILL MORE THAN 45 MILLION HE SAID MAKING IT THE SECOND LARGEST SHOP IN RICHMOND THOMAS J FINNEGAN CHAIRMAN AND CHIEF EXECUTIVE OF FINNEGAN & AGEE WAS NAMED CHIEF EXECUTIVE OF THE NEW AGENCY CALLED ARNOLD FINNEGAN MARTIN DAVID MARTIN CHAIRMAN AND COFOUNDER OF HAWLEY MARTIN WAS NAMED CHIEF PLANNING OFFICER STEPHEN MARTIN CHIEF EXECUTIVE OF HAWLEY MARTIN AND DAVID MARTIN'S BROTHER SAID HE HAD DECIDED TO LEAVE THE AGENCY BUSINESS FOUR MAKERS OF DIETARY SUPPLEMENTS WERE CHARGED WITH DECEPTIVE TRADE PRACTICES IN NEW YORK CITY FOR LABELS CLAIMING THE PRODUCTS BOOST THE IMMUNE SYSTEM RICHARD SCHRADER ACTING CONSUMER AFFAIRS COMMISSIONER SAID SUPPLEMENTS FROM FOUR COMPANIES PREY ON THE FEARS OF PEOPLE WITH AIDS BY USING IMMUNESYSTEM CLAIMS TO COMMAND HIGHER PRICES THAN ORDINARY VITAMINS TWIN LABORATORIES INC OF RONKONKOMA NY WAS CITED FOR CLAIMS ON THE LABELS OF IMMUNE PROTECTORS VITAMIN AND MINERAL CAPSULES NATURAL ORGANICS INC OF FARMINGDALE NY WAS CITED FOR THE IMMUNIZER PAK PROGRAM INCLUDING IMMUNE ACTION HERBAL CAPSULES AND IMMUNACE VITAMINS AND MINERALS AND FOR IMMUNECTAR DRINK POWDER NUTRITIONAL LIFE SUPPORT SYSTEMS CO OF SAN DIEGO WAS CITED FOR PROIMMUNE ANTIOXIDANT HERBAL CAPSULES AND SCANDINAVIAN NATURAL HEALTH & BEAUTY PRODUCTS OF PERKASIE PA WAS CITED FOR ECOMER SHARK LIVER OIL CAPSULES WHOSE LABEL CLAIMS THAT THEY PROMOTE A STRONG NATURAL IMMUNE DEFENSE SYSTEM TWIN LABORATORIES NATURAL ORGANICS AND SCANDINAVIAN NATURAL HEALTH DIDN'T RETURN CALLS SEEKING COMMENT RICHARD MORTENSEN A CONSULTANT FOR NUTRITIONAL LIFE SUPPORT SYSTEMS SAID WE WILL IMMEDIATELY TAKE STEPS TO CHANGE THIS LABEL EACH CHARGE CARRIES A POSSIBLE FINE OF UP TO 500 A NEW YORK CITY CONSUMER PROTECTION LAW PROHIBITS CLAIMS ABOUT THE IMMUNE SYSTEM UNLESS ACCOMPANIED BY EITHER A STATEMENT OF THE EFFECT ON AIDS SUFFERERS OR A DISCLAIMER THAT THE PRODUCT HASN'T BEEN PROVEN EFFECTIVE IN CURING OR EXTENDING THE LIVES OF PEOPLE WITH AIDS 9306250048 930625 A BUNT IN THE BRONX ROUTINELY BOUNCES ON NEW JERSEY SOIL JIM KELSEY'S ACREAGE SUPPLIES HIGHPERFORMANCE DIRT FOR MANY BASEBALL TEAMS BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL GREAT MEADOWS NJ ANTHONY YOUNG PITCHING FOR THE NEW YORK METS HAS JUST TIED THE 83YEAROLD MAJOR LEAGUE RECORD FOR CONSECUTIVE GAMES LOST THE PITCHER'S MOUND HE STANDS ON AT SHEA STADIUM IS MADE OF EARTH DUG OUT OF A DRAINED MALARIAL SWAMP IN NEW JERSEY ONCE THE SITE OF AN INDIAN MASSACRE JUST OFF A THOROUGHFARE CALLED SHADES OF DEATH ROAD ALMOST CERTAINLY THE DIRT THAT THE PHILADELPHIA PHILLIES PLAY ON COMES FROM THE SAME INAUSPICIOUS PIT AND THEY ARE CURRENTLY LEADING THE NATIONAL LEAGUE EAST THE TORONTO BLUE JAYS PLAY ON THE SAME STUFF AND THEY WON THE WORLD SERIES LAST YEAR THE CHAMPIONSHIP THUS HAS NEVER BEEN WON ON FOREIGN SOIL TWELVE MAJORLEAGUE BASEBALL CLUBS GET SOME OR ALL OF THEIR DIRT FROM THIS PLACE NOT TO MENTION MORE THAN 60 MINORLEAGUE CLUBS AND SOME 300 COLLEGE TEAMS HERE AT ONE TIME THERE WERE TWO MILES OF ICE ABOVE US AND THE LAKE BED WAS GOUGED OUT ABOUT FIVE HUNDRED FEET BELOW US SO AS THE GLACIER MELTED IT DROPPED OFF A HUGE SECTION OF GRAVEL THAT GOES WAY DOWN JIM KELSEY SAYS EXPLAINING HOW HE CAME TO BE THE WORLD'S FOREMOST PURVEYOR OF FINE INFIELDS THE MELTING GLACIER ALSO LEFT POCKETS OF SAND AND ESPECIALLY CLAY IN A VARIETY OF COLORS RED CHOSEN BY MANY FLORIDA BASEBALL TEAMS GRAY POPULAR IN CHICAGO BROWN TORONTO AND ORANGE THE METS ALAS A BASEBALL INFIELD MAY NOT ORDINARILY BE THOUGHT OF AS A RETAIL ITEM BUT THE DAYS ARE LONG GONE WHEN A MAJORLEAGUE TEAM SIMPLY PLAYED THE GAME ON THE GROUND WHERE ITS STADIUM WAS BUILT THERE ISN'T EVEN A SINGLE OPTIMAL BASEBALL DIRT MR KELSEY SELLS MANY DIFFERENT KINDS IN FOUR BROAD CATEGORIES TO COVER THE SKINNED AREAS OF A BASEBALL FIELD THE SPOTS WITHOUT GRASS FOR BASE PATHS HE RECOMMENDS BASEBALL DIAMOND MIX WHICH IS A SOFT SLIDING SURFACE THAT'LL DRAIN WELL AND WORK UP EASILY AND NOT BECOME DUSTY FOR PITCHER'S MOUNDS THERE IS MOUND MIX A FIRMER EARTH THAT GIVES GOOD FOOTING BATTER'S AND CATCHER'S BOXES ARE BEST MADE OF SOMETHING IN BETWEEN CALLED HOME PLATE MIX AND THEN THERE ARE DIFFERENT WARNINGTRACK MATERIALS HE SAYS INCLUDING CRUSHED BRICK AND LAVA THIS IS NOT BASEBALL DIRT AT ITS MOST EXOTIC ITS MOST EXOTIC IS LENA BLACKBURNE'S BASEBALL RUBBING MUD COLLECTED EACH YEAR AT LOW TIDE AT A CERTAIN SPOT IN A TRIBUTARY OF THE DELAWARE RIVER MIXED WITH A SECRET INGREDIENT AND SHIPPED IN ONEPOUND COFFEE CANS TO MAJORLEAGUE CLUBS WHERE UMPIRES USE IT TO RUB THE GLOSS OFF NEW BASEBALLS AT THE START OF EACH GAME BUT MR KELSEY'S BASEBALL DIRT IS AT LEAST MYSTERIOUS EACH OF HIS PRODUCTS IS A MIXTURE OF SAND AND CLAY BUT DIFFERENT SANDS AND DIFFERENT CLAYS HE SAYS BLENDED IN PROPORTIONS THAT HE WILL DISCUSS ONLY IN GENERAL TERMS ABOUT HALF OF THE INGREDIENTS COME FROM HIS OWN LAND HERE WHICH COVERS ABOUT 1000 ACRES THE REST HE IMPORTS FROM SELECTED PITS AROUND THE COUNTRY MR KELSEY GOT INTO THE DIRT BUSINESS THE USUAL WAY STUDYING INTERNATIONAL RELATIONS WITH AN EMPHASIS ON PORTUGUESESPEAKING COUNTRIES BEFORE REALIZING ON HIS GRADUATION FROM COLLEGE THAT THE FAMILY FARM NEEDED HIS HELP HIS FATHER A WRITER AND COMMODITIES TRADER HAD BOUGHT LAND HERE IN THE 1940S THE ELDER MR KELSEY LIKE HIS SON MADE A CONTRIBUTION TO POPULAR CULTURE THAT WAS IMPORTANT AND ANONYMOUS HE WORKED ON THE SCREENPLAY FOR THE 1930 AVIATION MOVIE HELL'S ANGELS WHICH GAVE THE WORLD THE LINE WOULD YOU BE SHOCKED IF I PUT ON SOMETHING MORE COMFORTABLE THE KELSEY FAMILY WENT INTO THE PEAT BUSINESS DIGGING IT UP TO SELL TO LANDSCAPERS AND IN THE PROCESS EXPOSING ALL SORTS OF INTERESTING DIRT THE ELDER MR KELSEY DIED AND HIS WIFE CARRIED ON AS BEST SHE COULD BUT THE BUSINESS FELL ON HARD TIMES SO INSTEAD OF GOING TO RUTGERS LAW SCHOOL WHERE HE WAS ENROLLED JIM KELSEY A GENTLE MAN WITH A BEMUSED AIR DECIDED TO STAY HOME AND SEE WHAT USE HE COULD MAKE OF THE LAND FIRST HE DEVELOPED A SPECIAL SOIL FOR THE MUSHROOM INDUSTRY NEXT HE DEVELOPED A SOIL FOR DRESSING GOLFCOURSE GREENS LATER CAME LANDSCAPING STONE ROOFING AGGREGATES AND ICECONTROL GRIT FOR HIGHWAYS THEN IN 1984 OFFICIALS OF NEARBY HACKETTSTOWN ASKED MR KELSEY IF HE COULD MIX UP A BASEBALL DIAMOND FOR THEM BECAUSE THEIR SUPPLIER ART KUNTZ WAS GOING OUT OF BUSINESS MR KUNTZ WHOSE FAMILY HAD BEEN IN THE NEW JERSEY DIRT BUSINESS SINCE THE CLAY TENNIS COURT CRAZE OF THE 1920S RECALLS THEY WENT TO JIM AND JIM CAME TO ME AND WE JUST GOT ALONG LIKE FATHER AND SON AND HE BOUGHT ME OUT AND I GAVE HIM ALL THE KNOWLEDGE THAT I HAD ALONG WITH THE SECRETS OF MIXING PREMIUM BASEBALL DIRT MR KUNTZ PASSED ON HIS ACCOUNTS WITH THE NEW YORK YANKEES THE BLUE JAYS THE CHICAGO CUBS THE MONTREAL EXPOS AND SEVERAL MINORLEAGUE TEAMS MR KELSEY NOW 45 YEARS OLD HAS BEEN EXPANDING THE BASEBALL SIDE OF THE FAMILY BUSINESS EVER SINCE HE HAS A TOLLFREE TELEPHONE NUMBER AND DISTRIBUTION SITES IN THREE STATES HE SELLS RAKES WATERREMOVAL MACHINES BASES BASE COVERS BASELINE MARKERS CLEAT CLEANERS AND SQUEEGEES HIS COMPANY CALLED PARTAC PEAT CORP EMPLOYS 17 PEOPLE INCLUDING HIS MOTHER HIS UNCLE AND HIS WIFE MR KELSEY'S DIRT CONGLOMERATE DOES NOT HOWEVER PUT BASEBALL DIAMONDS AT RISK OF BECOMING HOMOGENIZED BASEBALL LANDSCAPING HAS A LONG DEVIOUS HISTORY AND NO ONE IS SUGGESTING THAT GROUNDSKEEPERS WILL GIVE UP BANKING BASE LINES SO THAT BUNTS ROLL FAIR OR BUILDING A SOFT SPOT INTO A MOUND PRECISELY WHERE AN OPPOSING PITCHER WILL PLANT HIS FOOT THE AVAILABILITY OF MODERN MATERIALS IN FACT ONLY SEEMS TO ENCOURAGE SNEAKY GROUNDSKEEPING SEVERAL UPTODATE STADIUMS HAVE UNDERGROUND IRRIGATION SYSTEMS THESE CAN BE USED FOR INSTANCE TO SLOW DOWN A SPEEDY OUTFIELDER BY WETTING DOWN HIS PORTION OF THE FIELD FROM BELOW EVEN AS A GAME IS UNDER WAY THE NEWEST MAJORLEAGUE STADIUM CAMDEN YARDS IN BALTIMORE HAS A RUBBERIZED SYNTHETIC WARNING TRACK OFF WHICH BASEBALLS REBOUND IN A UNIQUE MANNER THAT IS COMING TO BE KNOWN AS THE BALTIMORE BOUNCE FURTHERMORE IT IS MANAGEMENT OF DIRT NOT OF GRASS THAT IS THE MEASURE OF A GROUNDSKEEPER'S ART SOMETHING OFTEN OVERLOOKED BY THE AVERAGE FAN WHO INSECURE ABOUT HIS OWN LAWN IS MESMERIZED BY THE BEAUTIFUL GRASS IN A BIGLEAGUE BALLPARK IF YOU DON'T KNOW MOUNDS IF YOU DON'T KNOW INFIELDS IF YOU DON'T KNOW BATTER'S BOXES THE GRASS DOESN'T MAKE ANY DIFFERENCE SAYS GEORGE TOMA THE FAMOUS GROUNDSKEEPER OF THE KANSAS CITY ROYALS YOU GO TO COLLEGE YOU LEARN ABOUT GRASS BUT YOU HAVE TO GO OUT AND WORK WITH A GROUNDSKEEPER TO LEARN ABOUT DIRT IT TAKES 44 TONS OF DIRT TO COVER A MAJORLEAGUE BASEBALL DIAMOND WITH A ONEINCH LAYER MR KELSEY RECOMMENDS THREE INCHES FOR NEW FIELDS OVER A GOOD DRAINAGE BASE BUT EVEN SUPPLYING HUNDREDS OF BASEBALL FIELDS EACH YEAR HE IS IN NO DANGER OF RUNNING OUT OF INVENTORY THE GLACIER WAS GENEROUS AND IT SHOULD ENABLE MR KELSEY TO CONTINUE INDEFINITELY IN HIS CHOSEN FIELD MINING DIAMONDS ON THE FAMILY FARM 9306250047 930625 MARKETING & MEDIA REPORTS THAT ANTISHOPLIFTING DEVICE CAN HARM MUSIC TAPES ROILS STOCKS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS OF TWO COMPETING ANTITHEFT DEVICES REACTED SHARPLY TO REPORTS THAT A MUSIC RETAILERS' GROUP ACKNOWLEDGED THAT A SYSTEM DEVELOPED BY SENSORMATIC ELECTRONICS CORP COULD DEGRADE THE SOUND QUALITY OF AUDIO CASSETTES IN MARCH THE INDUSTRY GROUP REPRESENTING MUSIC RETAILERS THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS RECOMMENDED SENSORMATIC'S ACOUSTOMAGNETIC TECHNOLOGY AS THE STANDARD FOR USE IN SOURCE LABELING OF MUSIC PRODUCTS WITH ELECTRONIC ANTITHEFT LABELS TO PREVENT SHOPLIFTING THE DEERFIELD BEACH FLA COMPANY'S SYSTEM WAS PICKED FOR USE ON COMPACT DISKS VIDEOTAPES AND CERTAIN AUDIO TAPES YESTERDAY A NARM EXECUTIVE'S COMMENTS REPORTED ON THE BLOOMBERG BUSINESS NEWS SERVICE SAID THE SENSORMATIC SYSTEM COULD UNDER CERTAIN CONDITIONS HARM THE SOUND QUALITY OF CERTAIN AUDIO TAPES PAM HOROVITZ EXECUTIVE VICE PRESIDENT OF NARM SAID IN A SUBSEQUENT TELEPHONE INTERVIEW THAT A MAGNETIC TECHNOLOGY LIKE SENSORMATIC'S CAN HAVE A NEGATIVE IMPACT ON A MAGNETIC PRODUCT SUCH AS A MUSIC TAPE BUT ADDED THAT WAS KNOWN AT THE TIME OF THE INDUSTRY RECOMMENDATIONS SENSORMATIC SHARES FELL 2125 TO 38625 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE VOLUME WAS HEAVY AT MORE THAN 13 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 155200 SHARES OF CHECKPOINT SYSTEMS INC A COMPETING ANTITHEFT SYSTEMS COMPANY ROSE 150 TO 1050 IN OVERTHECOUNTER TRADING CHECKPOINT'S VOLUME WAS ALSO HEAVY AT 976400 COMPARED WITH AVERAGE TURNOVER OF 107200 NARM EXECUTIVES HAD PREVIOUSLY ACKNOWLEDGED THAT LAB TESTS SHOWED THAT A CERTAIN TYPE OF TAPE KNOWN AS TYPE I COULD SUFFER DEGRADATION IN THE DEACTIVATION PROCESS BUT NOTED THAT THE TAPE IN QUESTION IS MOST COMMONLY USED ON CASSETTE SINGLES AND INEXPENSIVE CHILDREN'S TAPES PRODUCTS RETAILERS WORRY LESS ABOUT LOSING TO SHOPLIFTERS AND THUS PROBABLY WOULDN'T TAG ANYWAY DAVID K SHOEMAKER CHECKPOINT'S DIRECTOR OF BUSINESS DEVELOPMENT SAID THE SENSORMATIC SYSTEM COULD POTENTIALLY DEGRADE A LARGER ARRAY OF RECORDED MUSIC THAN ORIGINALLY SUGGESTED HE NOTED THAT A MAJORITY OF THE TOP 30 ALBUMS LISTED BY BILLBOARD MAGAZINE USE TYPE I TAPE THE RECORDING INDUSTRY ASSOCIATION OF AMERICA CONFIRMED THAT A SIGNIFICANT PORTION OF THE INDUSTRY'S PRERECORDED AUDIO TAPES ARE PRODUCED ON TYPE I TAPE NARM EXECUTIVES HAD PREVIOUSLY ACKNOWLEDGED THAT LAB TESTS SHOWED THAT A CERTAIN TYPE OF TAPE KNOWN AS TYPE I COULD SUFFER DEGRADATION IN THE DEACTIVATION PROCESS BUT NOTED THAT THE TAPE IN QUESTION IS MOST COMMONLY USED ON CASSETTE SINGLES AND INEXPENSIVE CHILDREN'S TAPES PRODUCTS RETAILERS WORRY LESS ABOUT LOSING TO SHOPLIFTERS AND THUS PROBABLY WOULDN'T TAG ANYWAY THE INDUSTRY HAS BEEN SEEKING A STANDARD FOR ANTITHEFT DEVICES IN THE US'S MORE THAN 10000 MUSIC STORES THE SYSTEM THE MUSIC STORES CHOOSE IS EXPECTED TO INFLUENCE OTHER RETAILERS SUCH AS GROCERY DRUG AND DISCOUNT STORE CHAINS WHICH ARE ALSO LOOKING TO ESTABLISH A SINGLE STANDARD FOR ANTITHEFT DEVICES MUSIC RETAILERS ARE EAGER TO SETTLE ON A SECURITY SYSTEM AS THE MUSIC INDUSTRY BEGINS TO PHASE OUT ITS USE OF THE 6BY12 INCH LONG BOX PACKAGING THAT ENCASES MOST COMPACT DISKS BUT IN RECENT MONTHS ANALYSTS AND RECORD INDUSTRY EXECUTIVES HAVE RAISED QUESTIONS ABOUT THE SENSORMATIC DEVICE AND HOW ITS DEACTIVATION SYSTEM WOULD AFFECT TAPE MICHAEL PARDUE CHIEF OPERATING OFFICER OF SENSORMATIC SAID THE ONLY CASE IN WHICH AN ANTITHEFT DEVICE WOULD HURT A TAPE IS WHEN LABORATORY TESTING IS SPECIFICALLY DONE TO CAUSE A PROBLEM TO DETERMINE THE LIMITS OF THE DEVICE FOR EXAMPLE IF A TAPE IS TAKEN OUT OF ITS BOX AND SLAMMED DOWN HARD ON A MAGNET THAT MIGHT ADD EXTRA SOUNDS TO THE TAPE HE SAID NARM'S TESTING WAS WELL BEYOND ANYTHING THAT WOULD HAPPEN IN A NORMAL RETAIL ENVIRONMENT HE SAID SENSORMATIC'S SYSTEM IS CURRENTLY USED BY 500 MUSIC RETAIL OUTLETS INCLUDING TOWER RECORDS AND MUSICLAND THAT HAVE NEVER HAD A PROBLEM MR PARDUE SAID 'THAT'S THE ULTIMATE TEST THE MARKET FOR DISPOSABLE DETECTION EQUIPMENT SUCH AS SENSORMATIC'S IS EXPECTED TO REACH 1 BILLION BY THE END OF THE DECADE CHECKPOINT EXECUTIVES SAID THE TAPES IN QUESTION ARE USED HEAVILY BY RECORD COMPANIES THEY ADDED THAT CHECKPOINT IS PUSHING FOR NARM TO WITHDRAW ITS RECOMMENDATION AND CONDUCT NEW TESTING TO INCLUDE CHECKPOINT'S OWN RADIOFREQUENCY TECHNOLOGY WHILE NARM ISN'T GOING TO RESCIND ITS RECOMMENDATION OF THE SENSORMATIC SYSTEM MS HOROVITZ SAID THE SOURCETAGGING DEVICE WOULDN'T BE ADOPTED BY MUSIC RETAILERS UNLESS THE RECORD COMPANIES ARE COMFORTABLE WITH THE SOUND QUALITY AND OTHER ISSUES THE SIX MAJOR MUSIC DISTRIBUTION COMPANIES ARE CURRENTLY DOING THEIR OWN TESTING OF A SENSORMATIC SYSTEM LAURIE M GROSSMAN IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9306250046 930625 ABREAST OF THE MARKET STOCKS RALLY ON PROGRAM TRADES TAKING A CUE FROM BOND MARKET BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A RALLY IN THE BOND MARKET SOOTHED INVESTORS' JITTERS AND SENT STOCK PRICES HIGHER AFTER WORRYING FOR TWO SESSIONS ABOUT WEAKNESS IN CORPORATE PROFITS AND THE ECONOMY INVESTORS TOOK YESTERDAY'S NEARLY 3/8POINT JUMP IN LONGTERM BONDS AS THEIR CUE TO BUY DEPRESSED EQUITIES FUTURESRELATED PROGRAM TRADING PLAYED A LEADING ROLE IN THE RALLY SEVERAL WAVES HIT DURING THE DAY THE MOST NOTABLE ONE CAME ABOUT AN HOUR BEFORE THE CLOSE AND CARRIED THE MARKET NEAR ITS SESSION HIGH TRADERS SAID THERE WAS NO NEWS BEHIND THE LATE SURGE THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A GAIN OF 2380 OR 069 TO 349061 IT HAD TUMBLED 3072 WEDNESDAY AND 1329 ON TUESDAY I THINK WE ARE ENTITLED TO A LITTLE TECHNICAL BOUNCE AFTER THE SLIDE WE HAVE HAD THIS WEEK SAID MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO BUT WHILE MANY INVESTORS TOOK HEART IN THE BOND MARKET'S GAINS AND THE RESULTING DROP IN MARKET INTEREST RATES MR METZ SAID HE READS CAUTION IN THAT MOVE I THINK THE BOND MARKET IS TELLING US THE ECONOMY IS WEAKER THAN EXPECTED AND CORPORATE PROFITS COULD BE DISAPPOINTING HE SAID STOCK INVESTORS IGNORED A SLUGGISH ECONOMIC REPORT THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE LAST WEEK INSTEAD OF EASING SLIGHTLY AS ANALYSTS HAD FORECAST STANDARD & POOR'S 500STOCK INDEX JUMPED 343 OR 077 TO 44662 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 168 OR 069 TO 24660 AND THE DOW JONES EQUITY MARKET INDEX INCREASED 319 OR 076 TO 42349 BIG BOARD VOLUME SLIPPED TO 260839400 FROM 271542930 ON WEDNESDAY ADVANCERS LED DECLINERS 1139771 AN UPBEAT EARNINGS FORECAST FROM GOODYEAR TIRE & RUBBER ALSO HELPED TO OFFSET SOME OF THE RECENT CONCERNS ABOUT PROFITS THE STOCK JUMPED 1 3/4 TO 40 3/4 THE AKRON OHIO CONCERN PREDICTED ITS SECONDQUARTER INCOME WILL CLIMB TO 130 MILLION TO 140 MILLION FROM 1069 MILLION A YEAR EARLIER JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO SAID HE EXPECTS MORE SOLID EARNINGS NEWS IN THE WEEKS TO COME ALTHOUGH MOST CORPORATE EARNINGS FORECASTS OVER THE PAST SEVERAL WEEKS HAVE BEEN CAUTIONARY HE SAID HE EXPECTS CORPORATE PROFITS OVERALL TO BE UPBEAT JOHN PARASCO A TRADER AT LEHMAN BROTHERS SAID THE WEAKEST STOCKS OF LATE ATTRACTED THE MOST BUYING YESTERDAY AMONG SECTORS REBOUNDING WERE OIL BANKING DRUGS AND TELEVISION BROADCASTING AIRLINE AND RAILROAD ISSUES ADVANCED UAL WHICH SAID IT MIGHT SPIN OFF A NEW AIRLINE COMPANY TO RUN ITS SHORTHAUL DOMESTIC ROUTES JUMPED 3 7/8 TO 124 1/2 BURLINGTON NORTHERN ROSE 1 3/4 TO 52 3/4 AND CSX ADDED 1/2 TO 69 THE DOW JONES TRANSPORTATION AVERAGE GAINED 2185 OR 146 TO 151526 GILLETTE ROSE 2 1/8 TO 51 7/8 FOLLOWING A REPORT BY JACK SALZMAN OF GOLDMAN SACHS & CO THAT THE BOSTON PERSONALCARE CONCERN'S SECONDHALF EARNINGS SHOULD BE UP 18 TO 20 LAST YEAR GILLETTE HAD INDICATED SECONDHALF EARNINGS OF 2635 MILLION MUCH OF THE GROWTH WILL BE FROM THE LAUNCH OF SEVERAL NEW PRODUCTS AND STRONG REORDERS ON SEVERAL TOILETRY PRODUCTS MR SALZMAN SAID PROCTER & GAMBLE ADDED 1 TO 50 1/4 THE CINCINNATI HOUSEHOLD PRODUCTS COMPANY IS BEGINNING A COSTCUTTING PROGRAM THAT COULD REDUCE ITS WORK FORCE BY 10 OR 10000 PEOPLE STANLEY WORKS FELL 3 1/2 TO 41 7/8 AFTER IT SAID SECONDQUARTER EARNINGS WILL FALL SHORT OF THE 63 CENTS A SHARE IT REPORTED A YEAR EARLIER THE NEW BRITAIN CONN TOOL MAKER CITED SLUGGISH CONSUMER SALES AND WEAKNESS IN THE HOUSING MARKET CARNIVAL CRUISE LINES GAINED 2 3/4 TO 36 1/4 THE MIAMI CRUISE SHIP OPERATOR SAID ITS EARNINGS ROSE TO 46 CENTS A SHARE IN ITS SECOND QUARTER FROM 41 CENTS A YEAR EARLIER ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD FORECAST INCOME OF ABOUT 44 CENTS SENSORMATIC ELECTRONICS CLOSED WITH A LOSS OF 2 1/8 TO 38 5/8 IT HAD FALLEN AS LOW AS 37 INTRADAY ON REPORTS LATER DENIED THAT A TRADE GROUP HAD DETERMINED REGULAR USE OF THE DEERFIELD BEACH FLA COMPANY'S MAGNETIC ANTITHEFT DEVICES CAUSES DAMAGE TO AUDIO CASSETTE TAPES THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS SAID IT CONTINUES TO ENDORSE THE SYSTEMS HEALTH PROFESSIONALS CONTINUED TO SLIDE LOSING 1 3/4 TO 4 THE FORT LAUDERDALE FLA CONCERN CITED A NEWSLETTER REPORT THAT SAID THE COMPANY ALTERED DATA FROM ITS HUMAN TRIALS OF AN AIDS DRUG HEALTH PROFESSIONALS SAID IT IS SUING THE NEWSLETTER ALLEGING LIBEL THE PUBLICATION MEDICAL BUSINESS SAID IT STANDS BY ITS STORY A FOOD AND DRUG ADMINISTRATION OFFICIAL SAID THE AGENCY PLANS AN INVESTIGATION HEALTH PROFESSIONALS STOCK BEGAN THE MONTH AT 12 1/8 PRIMERICA SURGED 3 1/2 TO 49 1/4 THE COMPANY SAID THE MERGER OF ITS SMITH BARNEY HARRIS UPHAM & CO UNIT WITH THE RETAIL BROKERAGE AND ASSET MANAGEMENT DIVISIONS OF SHEARSON LEHMAN BROTHERS IS EXPECTED TO RESULT IN THE LAYOFF OF 1000 TO 1200 PEOPLE SEAGULL ENERGY TUMBLED 2 1/8 TO 26 1/8 AND BURLINGTON RESOURCES FELL 1 1/8 TO 47 5/8 BEAR STEARNS & CO ANALYST STEPHEN SMITH DOWNGRADED THE STOCKS TO HOLD FROM BUY 9306250045 930625 BUSINESS BRIEF GATX CORP UNIT ACQUIRES RAIL ASSETS FROM WESTINGHOUSE ELECTRIC GATX CORP CHICAGO SAID ITS GATX CAPITAL UNIT ACQUIRED A PORTFOLIO OF RAIL ASSETS FROM WESTINGHOUSE ELECTRIC CORP GATX SAID THE PURCHASE INCLUDES ABOUT 1500 DOUBLESTACK INTERMODAL CARS STEEL AND ALUMINUM COAL CARS AND WOODCHIP FREIGHT CARS MOST LESS THAN FIVE YEARS OLDWITH AN AGGREGATE ORIGINAL VALUE OF ABOUT 100 MILLION TERMS OF THE ACQUISITION WEREN'T DISCLOSED GATX HAS INTERESTS IN RAILCAR AND AIRCRAFT LEASING GREAT LAKES SHIPPING BULK LIQUID TERMINALS AND WAREHOUSING THE COMPANY SAID ITS LATEST ACQUISITION BRINGS GATX RAIL'S LEASE FLEET TO MORE THAN 42000 FREIGHT CARS AND 850 LOCOMOTIVES IN WHICH IT HAS EITHER OWNERSHIP OR MANAGEMENT INTERESTS 9306250044 930625 RECENT SEC FILINGS THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT CHINA TIRE HOLDINGS LTD AN INITIAL OFFERING OF 61 MILLION COMMON SHARES VIA MORGAN STANLEY & CO FIRST BOSTON CORP AND SALOMON BROTHERS INC KAISER ALUMINUM CORP AN OFFERING OF ABOUT 171 MILLION DEPOSITARY SHARES VIA MERRILL LYNCH & CO KURZWEIL APPLIED INTELLIGENCE INC AN INITIAL OFFERING OF 21 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO LP AND NEEDHAM & CO LIFE MEDICAL SCIENCES INC AN OFFERING OF 200000 TO 500000 UNITS EACH CONSISTING OF TWO COMMON SHARES AND ONE REDEEMABLE CLASS A WARRANT WORDSTAR INTERNATIONAL INC A PROXY COVERING ITS PROPOSED MERGER WITH SOFTKEY SOFTWARE PRODUCTS INC 9306250043 930625 BUSINESS BRIEF NS GROUP INC HOLDING COMPANY TO RELEASE KENTUCKY ELECTRIC STEEL UNIT NS GROUP INC NEWPORT KY SAID IT WOULD SPIN OFF ITS WHOLLY OWNED SPECIALTY STEEL SUBSIDIARY KENTUCKY ELECTRIC STEEL CORP IN A MOVE THAT WOULD IMPROVE THE COMPANY'S HIGHLY LEVERAGED BALANCE SHEET KENTUCKY ELECTRIC FUELED 80 MILLION OF NS GROUP'S 281 MILLION REVENUES IN THE FISCAL YEAR ENDED SEPT 30 NS A HOLDING COMPANY WITH FOUR OTHER MANUFACTURING UNITS SAID THE SALE WOULD IMPROVE ITS FINANCIAL POSITION AND PROVIDE KENTUCKY ELECTRIC WITH NEW FINANCIAL RESOURCES FOR CAPITAL EXPANSION WE THINK IT WILL GO A LONG WAY TO CORRECT OUR FINANCIAL FLEXIBILITY A SPOKESMAN SAID NS REPORTED A NET LOSS OF 159 MILLION AND HAD LONGTERM DEBT OF 173 MILLION AND SHAREHOLDERS EQUITY OF 685 MILLION AT THE END OF ITS LATEST FISCAL YEAR KENTUCKY ELECTRIC WHICH HAD OPERATING INCOME OF 84 MILLION MAKES INDUSTRIAL STEEL PRODUCTS IT OPERATES A MINIMILL NEAR ASHLAND KY 9306250042 930625 HEARD ON THE STREET ARGENTINA'S YPF OFFERING COULD BE A GUSHER BUT HUGE DEAL HAS POLITICAL ECONOMIC RISKS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ARGENTINA WILL TAKE ITS SPOT ON THE RECORD BOOKS NEXT WEEK WITH ONE OF THE LARGEST INITIAL PUBLIC OFFERINGS EVER THE COUNTRY IS SELLING ITS STATEOWNED OIL COMPANY YPF TO INVESTORS IN THE US ARGENTINA AND AROUND THE WORLD CS FIRST BOSTON AND MERRILL LYNCH EXPECT TO BRING THE 2 BILLION 110 MILLION SHARE OFFERING TO MARKET AT 17 TO 20 APIECE THE AMERICAN DEPOSITARY SHARES WILL TRADE ON THE BIG BOARD UNDER A PROPOSED SYMBOL OF YPF IT'S AN APPETIZING DEAL IN SEVERAL WAYS BUT MAKE NO MISTAKE IT'S ALSO RISKY ARGENTINA WANTS TO PRICE THE DEAL SWEETLY FOR INVESTORS TO MAKE SURE THE MAMMOTH OFFERING SELLS WITH THE SWEET PRICE HOWEVER COME A WHOLE BOATLOAD OF POLITICAL AND ECONOMIC RISKS INVESTORS WHO GET THE STOCK IN THE INITIAL OFFERING MIGHT BE ABLE TO FLIP IT SELL IT FOR A QUICK PROFIT AT 22 OR 23 A SHARE WITHIN A FEW DAYS AFTER THAT THE STOCK IS LIKELY TO GYRATE YPF IS A TURNAROUND STOCK AND TURNAROUNDS TEND TO BE VOLATILE ALSO YPF SHARES WILL FLUCTUATE WITH INVESTORS' PERCEPTIONS OF ARGENTINA'S ECONOMY ONE THING THAT'S CURIOUS ABOUT THIS DEAL IS THE WIDE VARIATION IN PERCEPTION ABOUT JUST WHAT KIND OF INVESTMENT YPF IS HERE'S HOW THE BETS PLAY OUT THE ASSET PLAY ACCORDING TO THIS VIEW INVESTORS HAVE AN OPPORTUNITY TO BUY OIL IN THE GROUND OR RESERVES CHEAPLY ARTHUR SMITH CHAIRMAN OF THE PETROLEUM RESEARCH FIRM JOHN S HEROLD IN GREENWICH CONN SAYS THAT AT A MIDRANGE OFFERING PRICE OF 1850 A SHARE INVESTORS WILL BE PAYING 180 TO 200 A BARREL FOR OIL AND ENERGY EQUIVALENTS SUCH AS NATURAL GAS PUBLICLY TRADED COMPANIES ARE PRICED MORE IN THE ORDER TO 5 TO 7 A BARREL SO YOU CAN SEE THE ROMANCE OF THIS DEAL MR SMITH SAYS WITH 28 BILLION BARRELS OF OIL OR EQUIVALENTS YPF WOULD BE AMONG THE TOP DOZEN PUBLICLY TRADED COMPANIES IN THE WORLD IN TERMS OF RESERVES MR SMITH IS PARTICULARLY EXCITED ABOUT YPF'S AMPLE NATURAL GAS RESERVES RIGHT NOW GAS SELLS FOR ABOUT 95 CENTS PER THOUSAND CUBIC FEET IN ARGENTINA FAR BELOW THE US PRICE OF ABOUT 216 BUT AS GOVERNMENT CONTROLS ARE EASED NEXT YEAR HE EXPECTS PRICES TO RISE TO AROUND 130 THE TURNAROUND PLAY NOW THAT IT WILL NO LONGER BE GOVERNMENTRUN YPF CAN START IMPLEMENTING STRATEGIES THAT WILL CUT COSTS BOOST PRODUCTION AND RAISE EARNINGS SOME INVESTORS THINK YOU ARE BUYING A TURNAROUND SAYS JEAN VAN DE WALLE PORTFOLIO MANAGER AT ALLIANCE CAPITAL YPF WAS RUN LIKE A STATE MINISTRY THAT'S ALREADY CHANGING OVER THE PAST 2 1/2 YEARS YPF HAS TERMINATED MORE THAN 40000 EMPLOYEES AND EMPLOYMENT IS EXPECTED TO FALL A BIT FURTHER TO 8000 WORKERS BY YEAR END PRODUCTION COSTS COULD SHRINK TO 711 A BARREL THIS YEAR FROM ABOUT 815 A BARREL LAST YEAR ESTIMATES DOUGLAS TERRESON MANAGER OF THE PUTNAM ENERGY RESOURCES TRUST MR TERRESON THINKS EARNINGS COULD RISE TO ABOUT 240 A SHARE IN 1994 FROM ABOUT 165 IN 1993 THE COMPANY HAS 353 MILLION SHARES OUTSTANDING AT THE MIDRANGE PRICE OF 1850 A SHARE INVESTORS WOULD BE BUYING A 45 ESTIMATED EARNINGS GROWTH RATE AT ONLY 77 TIMES EARNINGS QUITE A BARGAIN TYPICALLY GROWTH STOCK P/E RATIOS ARE ABOUT AS HIGH AS A COMPANY'S GROWTH RATE YPF HAS TREMENDOUS MARKET SHARE AROUND 54 OF THE ARGENTINE RETAIL MARKET MR TERRESON SAYS YOU COULD ARGUE THAT OVER THE NEXT COUPLE OF YEARS WE WILL SEE HIGHER PROFIT MARGINS IT'S A GROWTH NAME TO ME THE ARGENTINA PLAY TO STILL OTHER INVESTORS YPF IS A BET ON THE TURNAROUND IN THE ARGENTINE ECONOMY BECAUSE MOST OF YPF'S ENERGY PRODUCTS ARE SOLD IN ARGENTINA THE ECONOMY WILL PACE THE STOCK YPF COULD BECOME THE BUENOS AIRES BELLWETHER MUCH AS TELEFONOS DE MEXICO IS FOR THE MEXICAN STOCK MARKET AS LONG AS YOU BELIEVE IN ARGENTINA IT'S A GOOD STOCK SAYS MR VAN DE WALLE OF ALLIANCE CAPITAL BUT THAT'S JUST WHERE MUCH OF THE RISK COMES IN WHAT'S GOING ON IN ARGENTINA THESE DAYS LOTS OF THINGS MONEY MANAGERS SHOULD WORRY ABOUT THE ECONOMY IS EXPECTED TO SLOW THIS YEAR TO AROUND 4 OR 5 FROM 1992'S PACE OF 87 INFLATION WHILE LOW COMPARED WITH MANY PAST YEARS IS STILL UNCOMFORTABLY HIGH AT AROUND 13 ANALYSTS FIGURE THE MINISTRY OF FINANCE WILL TIGHTEN INTEREST RATES A BIT THIS YEAR IN AN ATTEMPT TO BRAKE INFLATION FURTHER AND WHAT ABOUT POLITICAL RISKS WHAT WAS ONCE NATIONALIZED COULD BE NATIONALIZED AGAIN IF LATIN AMERICAN POLITICS TOOK A SUDDEN TURN BACK TO THE LEFT THERE IS ALWAYS A SOVEREIGN RISK ISSUE IN THESE NATIONAL OIL COMPANIES SAYS BERNARD PICCHI MANAGING DIRECTOR AT KIDDER PEABODY & CO FREEMARKET REFORM IS ONLY FAIRLY SHALLOWLY ROOTED IN ARGENTINA FINALLY THERE'S THE INHERENT VOLATILITY OF WORLD OIL PRICES THOUGH OIL HAS BEEN FAIRLY STABLE LATELY ITS PRICE CAN SOAR OR DIP WITH POLITICAL DEVELOPMENTS IN THE ALWAYSJITTERY MIDDLE EAST DESPITE THE RISKS THERE'S TALK THAT YPF WILL BE SOLD NEAR THE HIGH END OF THE PROPOSED 17TO20 RANGE INVESTORS WHO CAN RIDE OUT THE WAVES MAY MAKE GOOD PROFITS IN THIS STOCK BUT MONEY MANAGERS EXPERIENCED WITH LATIN AMERICAN STOCKS SAY THERE'S NO NEED TO CHASE IT IF IT RISES IN THE DAYS FOLLOWING THE OPENING WHATEVER IT DOES YPF ISN'T LIKELY TO GO UP IN A STRAIGHT LINE WORLD OIL PRICES ARE VOLATILE ARGENTINA IS VOLATILE AND I THINK YPF IS GOING TO BE A VOLATILE STOCK SAYS ALLIANCE CAPITAL'S MR VAN DE WALLE 9306250041 930625 BUSINESS BRIEF TEKTRONIX INC COMPANY IS TAKING CHARGE OF 150 MILLION IN 4TH PERIOD TEKTRONIX INC SAID IT TOOK A RESTRUCTURING CHARGE OF 150 MILLION FOR ITS FISCAL FOURTH QUARTER TO ACCELERATE IMPROVED GROWTH AND PROFITABILITY UNDER THE RESTRUCTURING THE WILSONVILLE ORE ELECTRONICS CONCERN SAID IT WOULD CONSOLIDATE FACILITIES DISCONTINUE OLDER PRODUCTS AND LEAVE NONSTRATEGIC BUSINESSES IT ALSO SAID IT WOULD CUT ABOUT 800 JOBS OR 8 OF ITS WORK FORCE THROUGH ATTRITION AND LAYOFFS THE CHARGE WHICH HAD BEEN EXPECTED RESULTED IN A LOSS FOR THE QUARTER ENDED MAY 29 OF 821 MILLION OR 273 A SHARE COMPARED WITH NET INCOME OF 62 MILLION OR 21 CENTS A SHARE FOR THE YEAREARLIER PERIOD TEKTRONIX HAD AN OPERATING PROFIT OF 12 MILLION OR 40 CENTS A SHARE IN THE LATEST QUARTER IN LINE WITH ANALYSTS' ESTIMATES SALES ROSE 14 TO 353 MILLION FROM 311 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITETRADING YESTERDAY TEKTRONIX SHARES CLOSED AT 24125 UP 125 CENTS 9306250040 930625 WHO'S NEWS THOMSON CORP THOMSON CORP TORONTO RICHARD J HARRINGTON WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THOMSON NEWSPAPERS CORP EFFECTIVE JULY 7 HE SUCCEEDS MICHAEL W JOHNSTON WHO RESIGNED IN MAY MR HARRINGTON WHO JOINED THOMSON CORP IN 1982 AND MOST RECENTLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF THOMSON PROFESSIONAL PUBLISHING ALSO WILL BE NAMED A DIRECTOR OF THOMSON 9306250039 930625 TECHNOLOGY BRIEF ZOLL MEDICAL CORP FIRM TO RECALL OR PROVIDE PARTS FOR SOME HEART DEVICES ZOLL MEDICAL CORP WOBURN MASS SAYS THAT IT HAS OFFERED TO RECALL OR PROVIDE REPAIR PARTS FOR 100 TO 200 OF ITS HEART RESTARTING AND PACEMAKING MACHINES AFTER DETECTING A FLAW IN THE MACHINES DUANE DESISTO ZOLL'S CHIEF FINANCIAL OFFICER SAID THAT THE FLAWED PART WAS FOUND IN THE RELAYS OF ITS PD 1200 PACEMAKER/ DEFIBRILLATOR AND ITS PD 900 DEFIBRILLATOR MR DESISTO SAID A COUPLE OF THE MACHINES HAD FAILED IN THE FIELD HE ATTRIBUTED THE FAILURE TO A DEFECT IN A PART SUPPLIED BY A VENDOR HOSPITALS WERE GIVEN THE OPTION OF RETURNING THE MACHINES FOR REPAIR OR OF RECEIVING PARTS TO REPAIR THE MACHINES THEMSELVES MR DESISTO SAID ZOLL DIDN'T EXPECT THE RECALL AND REPAIRS TO HAVE ANY MATERIAL FINANCIAL AFFECT ON THE COMPANY OR ITS EARNINGS IN OVERTHECOUNTER TRADING YESTERDAY ZOLL'S SHARES FELL 175 OR 8 TO 2025 AFTER AN ANALYST ISSUED A REPORT ON THE RECALL 9306250038 930625 COMMODITIES AUGUST GOLD FUTURES CLIMB TO 37610 AN OUNCE DESPITE DOLLAR'S RISE AGAINST EUROPEAN MONEYS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRECIOUS METALS FUTURES ENDED MOSTLY HIGHER WITH GOLD CONTINUING TO FIRM MODERATELY ON A RETURN OF PHYSICAL DEMAND FROM ASIAN BUYERS TRADERS AND ANALYSTS SAID GOLD FOR AUGUST DELIVERY EDGED UP 60 CENTS TO 37610 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE DESPITE A MAJOR UPWARD MOVE IN THE DOLLAR AGAINST EUROPEAN CURRENCIES GOLD TENDS TO MOVE IN THE OPPOSITE DIRECTION OF THE DOLLAR THE PRECIOUS METALS ARE LOOKING VERY CONSTRUCTIVE SAID IAN MACDONALD WHO RUNS PRECIOUS METALS TRADING FOR CREDIT SUISSE IN NEW YORK WHILE THE MARKET IS STILL IN A CONSOLIDATION PHASE YOU CAN SEE THE TENDENCY IS TO EDGE HIGHER MR MACDONALD SAID THAT THE MOST IMPORTANT FACTOR FOR THE GOLD FUTURES MARKET WHICH TENDS TO LEAD THE OTHER PRECIOUS METALS MARKETS IS A NEW BOUT OF GOLD PURCHASES BY CHINESE BUYERS AN EXPLOSIVE RUNUP IN THE FUTURES PRICE OF GOLD LAST MONTH CLEARLY ERODED PRICESENSITIVE DEMAND FROM CHINA HONG KONG AND TAIWAN TRADERS SAY BUT CHINESE DEMAND SEEMS TO BE REEMERGING AS A RESULT OF THE RECENT RETREAT IN GOLD FUTURES PRICES WORLDWIDE AND AS GROWING FEARS OF RUNAWAY INFLATION IN CHINA ITSELF LEAD TO GREATER HOARDING OF GOLD A TRADITIONAL INFLATION HEDGE BY CHINESE CONSUMERS CHINESE DEMAND HAS BEEN QUIET FOR SOME WEEKS BUT WE'RE SEEING IT RETURN AGAIN ABOVE THE 370 LEVEL THE MARKET SEEMS LIKE IT'S PREPARING TO TEST THE RECENT HIGHS OF 385 WITHIN THE NEXT WEEK OR TWO SAID MR MACDONALD RECENT NEWS REPORTS FROM CHINA NOTED THAT CHINA'S URBAN COSTOFLIVING INDEX SOARED 195 IN MAY OVER MAY 1992 AND THAT NATIONWIDE INFLATION REACHED 167 THE REPORTS NOTED THAT INFLATION SCARES APPEARED TO BE DRIVING WORRIED CHINESE CONSUMERS INTO INVESTING IN GOLD AND US DOLLARS AS A HEDGE AGAINST ESCALATING PRICES AND A DEPRECIATING YUAN THE LOCAL CURRENCY TRADERS SAID A MAJOR TEST FOR GOLD FUTURES PRICES WILL BE A FURTHER BIG RISE IN THE DOLLAR IN THE WEEKS AHEAD GOLD'S RISING IN THE FACE OF A STRONG DOLLAR WILL CERTAINLY BE A CHANGE IN THE PATTERN THAT WE'VE SEEN FOR THE PAST COUPLE OF YEARS SAID KEN GETTINGER FIRST VICE PRESIDENT FOR PRECIOUS METALS AT UNION BANK OF SWITZERLAND BUT CLEARLY PEOPLE ARE LOOKING FOR ALTERNATIVE INVESTMENTS AND THAT INTEREST HAS PUSHED THEM TO LOOK AT THE GOLD MARKET HE SAID HE WAS IMPRESSED WITH GOLD'S RECENT RESILIENCE NOT ONLY IN THE FACE OF A STRONG DOLLAR BUT ALSO AMID THE RELEASE OF LESS THAN OPTIMISTIC FIGURES FOR THE US ECONOMY THE DOLLAR ROSE TO 17073 MARKS UP FROM 16920 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS TRADING AT 10873 YEN DOWN FROM 10900 YEN IN NEW YORK TRADING PLATINUM PRICES WERE ALSO STRONGER YESTERDAY THE ACTIVE JULY CONTRACT ROSE 180 TO 38250 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR SEPTEMBER DELIVERY EDGED UP 140 TO 12840 SILVER PRICES EASED BACK DROPPING 03 CENT TO 4392 FOR JULY DELIVERY ON THE COMEX IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS SETTLED SLIGHTLY LOWER AS TRADERS TOOK PROFITS ON THE AGRICULTURE DEPARTMENT'S CONFIRMATION OF REPORTS THAT IT IS TARGETING 30 NATIONS TO RECEIVE 32 MILLION METRIC TONS 353 MILLION SHORT TONS OF SUBSIDIZED US WHEAT THROUGH NEXT JUNE THE DEPARTMENT SUBSIDIZES THE MAJORITY OF US WHEAT EXPORTS UNDER THE EXPORT ENHANCEMENT PROGRAM THROUGH WHICH IT COMPENSATES EXPORTERS THAT SELL DISCOUNTPRICED COMMODITIES TO SELECTED NATIONS THE PROGRAM WAS ORIGINALLY CREATED TO COUNTER COMPETITION FROM THE EUROPEAN COMMUNITY THE ANNOUNCEMENT MARKS THE FIRST TIME THAT THE DEPARTMENT HAS BROADENED THE PROGRAM TO CHALLENGE CANADIAN EXPORTS TO MEXICO AS A RESULT MEXICO IS ELIGIBLE TO RECEIVE 14 MILLION METRIC TONS OF SUBSIDIZED US WHEAT IN TRADING AT CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR JULY DELIVERY DIPPED TWO CENTS A BUSHEL TO SETTLE AT 287 A BUSHEL CORN AND SOYBEAN PRICES SETTLED MIXED IN LIGHT VOLUME AS SOME TRADERS TOOK PROFITS ON A WEDNESDAY RALLY TODAY TRADERS WILL FOCUS ON WHETHER FLOODING DISRUPTS GRAIN BARGE TRAFFIC ON THE MISSISSIPPI RIVER MUCH OF THE US CORN AND SOYBEAN EXPORTS ORIGINATES IN THE MIDWEST AND MOVES DOWN THAT RIVER TO GRAIN TERMINALS AROUND NEW ORLEANS ORANGE JUICE FUTURES PRICES CONTINUED THEIR GENERALLY UPWARD TREND WITH THE ACTIVE SEPTEMBER CONTRACT RISING 210 CENTS TO 12260 A POUND ON NEW YORK'S COTTON EXCHANGE ANALYSTS SAID THE INCREASE WHICH FOLLOWED A LIMITED SELLOFF ON WEDNESDAY REFLECTED FRESH BUYING BY THE TRADE AND BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY INDUSTRY STATISTICS RELEASED YESTERDAY ALSO SHOWED A HIGH LEVEL OF MOVEMENT FROM FLORIDA JUICE PROCESSORS INTO THE TRADE A GENERALLY BULLISH INDICATOR GIVEN RECENT PRICE INCREASES TRADERS SAID FOR THE WEEK ENDING JUNE 19 MOVEMENT TOTALED 53 MILLION GALLONS COMPARED WITH 39 MILLION GALLONS A YEAR AGO GIVEN THAT MOVEMENT LEVELS HAVE FAILED TO CONTRACT SIGNIFICANTLY THERE ARE BUILDING FEARS OF SUPPLY TIGHTNESS PARTICULARLY IF BRAZILIAN SALES TO THE US REMAIN SLACK SAID STEPHEN PLATT A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO 9306250037 930625 CORPORATE FOCUS POSTBANKRUPTCY TRACOR CONFRONTS SHRINKING MARKET DEFENSE ELECTRONICS CONCERN HOPES ACQUISITION WILL GIVE IT THE EDGE BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS EIGHTEEN MONTHS AGO TRACOR INC EMERGED FROM BANKRUPTCY PROCEEDINGS ONLY TO FIND THE DEFENSE MARKET EVEN WORSE THAN WHEN IT FIRST SOUGHT COURT PROTECTION BUT THAT HASN'T STOPPED THE DEFENSE ELECTRONICS CONCERN FROM STAGING AN AGGRESSIVE COUNTEROFFENSIVE THAT SOME ANALYSTS BELIEVE JUST MIGHT WORK IN RECENT MONTHS TRACOR HAS WON A HANDFUL OF CRITICAL NEW MILITARY CONTRACTS WHILE PAYING OFF NEARLY A QUARTER OF THE 60 MILLION IT BORROWED WHEN IT EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS EARLIER THIS MONTH TRACOR AGREED TO ACQUIRE VITRO CORP A DEFENSE SERVICES COMPANY OWNED BY PENN CENTRAL CORP IN A 94 MILLION DEAL THAT WILL MORE THAN DOUBLE TRACOR'S REVENUE TRACOR EXECUTIVES ARE COUNTING ON THAT PURCHASE OF VITRO WHICH IS BASED IN ROCKVILLE MD AND WHICH PROVIDES TECHNICAL AND ENGINEERING SUPPORT FOR THE DEFENSE DEPARTMENT AND OTHER FEDERAL AGENCIES TO INCREASE THE COMPANY'S CLOUT IN BIDDING FOR A DWINDLING POOL OF DEFENSE DOLLARS MOST ANALYSTS AGREE THE PURCHASE WHICH STILL DEPENDS ON FINANCING IS THE BEST MEASURE OF HOW FAR TRACOR HAS COME SINCE A FAILED 1987 LEVERAGED BUYOUT FORCED IT INTO BANKRUPTCY BUT IT REMAINS TO BE SEEN HOW THE COMPANY WILL FARE AS THE DEFENSE INDUSTRY FACES SHRINKING BUDGETS A NEW WAVE OF CONSOLIDATION AND INCREASINGLY CUTTHROAT COMPETITION COMPANIES LIKE THAT HAVE TO DO SOMETHING THE SECTOR THEY'RE IN WILL NOT SUPPORT THE NUMBER OF COMPANIES THAT ARE THERE SAID MAC MCCUTCHAN PRESIDENT OF ARDAK CORP A WASHINGTON MARKET RESEARCH FIRM US MILITARY SPENDING WHICH ACCOUNTED FOR MORE THAN THREEFOURTHS OF TRACOR'S 262 MILLION IN 1992 REVENUE HAS FALLEN ABOUT 29 SINCE 1986 AND IS EXPECTED TO DROP AN ADDITIONAL 17 OVER THE NEXT FIVE YEARS ACCORDING TO THE DEFENSE BUDGET PROJECT A WASHINGTON DC THINK TANK AND AS THE DOLLARS CONTRACT SO WILL THE NUMBER OF FIRMS GOING AFTER THEM BARELY A THIRD OF THE COMPANIES WITH DEFENSE OPERATIONS WILL BE IN THE BUSINESS BY THE END OF THE DECADE PROJECTS JOHN HARBISON HEAD OF CONSULTING FIRM BOOZ ALLEN & HAMILTON'S AEROSPACE DEFENSE PRACTICE THE SQUEEZE WILL BE ESPECIALLY SEVERE FOR MIDSIZE CONTRACTORS LIKE TRACOR THE SMALLEST COMPANIES ESPECIALLY MINORITY AND WOMENOWNED CONCERNS ARE TAKING A LARGER SHARE OF THE DEFENSE PIE AT THE SAME TIME DEFENSE GIANTS LIKE LOCKHEED CORP AND GRUMMAN CORP ARE DEALING WITH THE LOSS OF HIGHDOLLAR WEAPONSYSTEM PROGRAMS BY MOVING DOWN THE FOOD CHAIN EVERYBODY'S LOOKING AT EVERYBODY ELSE'S SANDBOX SAYS MR HARBISON THAT LEAVES TRACOR AND SIMILARLY SITUATED COMPANIES WITH LITTLE ROOM TO MANEUVER CONVERTING TO SELL IN THE COMMERCIAL MARKET IS SEEN AS AN EXPENSIVE AND RISKY STRATEGY THAT HAS PRODUCED FEW WINNERS MILKING MATURE DEFENSE CONTRACTS FOR CASH IN WHAT ANALYSTS CALL A SUPERNOVA IS A SHORTTERM APPROACH AT BEST THOSE WHO WANT TO REMAIN IN THE DEFENSE BUSINESS ARE TURNING TO ACQUISITIONS IN THE HOPE THAT THE ECONOMIES OF SCALE WILL ALLOW THEM TO COMPETE MORE AGGRESSIVELY TRACOR HAS CHOSEN TO LIVE OR DIE IN THE DEFENSE BUSINESS IT DERIVED JUST 3 OF REVENUE IN 1992 FROM COMMERCIAL SALES WE BELIEVE VERY STRONGLY IN THIS PERIOD OF CONSOLIDATION THAT AN ACQUISITION STRATEGY MUST PLAY A VERY IMPORTANT ROLE IN YOUR SUCCESS SAID JAMES SKAGGS TRACOR'S PRESIDENT AND CHIEF EXECUTIVE OFFICER VITRO HE SAID WILL GIVE US A CRITICAL MASS AS WE MOVE FORWARD IN A COMPETITIVE MARKETPLACE TO LONGTIME TRACOR WATCHERS THE COMPANY'S STRATEGY MIGHT SOUND VERY FAMILIAR IN 1987 THE COMPANY WAS TAKEN PRIVATE IN A 837 MILLION LEVERAGED BUYOUT BY WESTMARK SYSTEMS INC AUSTIN TEXAS WESTMARK THEN LED BY RETIRED NAVY ADMIRAL BOBBY INMAN PLANNED TO USE ACQUISITIONS TO CREATE A FORMIDABLE COMPETITOR IN DEFENSE ELECTRONICS BUT THE TIMING WAS BAD AS THE END OF THE COLD WAR BEGAN TO GUT DEFENSE SPENDING AND TRACOR'S DEBT BURDEN FORCED IT TO SELL ASSETS AT RAPIDLY DECLINING PRICES IN EARLY 1991 TRACOR AND ITS UNITS FILED FOR COURT PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE MR SKAGGS A FORMER EXECUTIVE OF ALLIEDSIGNAL CORP WHO HAD PREVIOUSLY PRESIDED OVER THE RESCUE OF A PAIR OF GOVERNMENT CONTRACTORS TOOK TRACOR'S HELM IN EARLY 1990 AND BEGAN SLASHING EXPENSES AND CLEANING UP TROUBLED PROGRAMS HE CLOSED ITS MONEYLOSING HYDRONAUTICS DIVISION AND SOLD ITS UNPROFITABLE MARINE OPERATIONS EVEN MODEST FRINGE BENEFITS WERE ELIMINATEDTRACOR WAS ABLE TO SAVE 300000 ANNUALLY BY DOING AWAY WITH FREE COFFEE FOR EMPLOYEES OPERATIONS THAT IN 1988 EMPLOYED ABOUT 6500 PEOPLE NOW EMPLOY 3400 BANKRUPTCY ALSO HELPED THE COMPANY WIPED OUT 526 MILLION IN LBO DEBT REPLACING IT WITH A NEW 60 MILLION CREDIT AGREEMENT IN TURN DEBTHOLDERS WERE GIVEN STOCK AND WARRANTS IN THE REORGANIZED COMPANY EVEN WESTMARK RECEIVED A STAKE AND A GUARANTEED SEAT ON TRACOR'S SIXMEMBER BOARD SINCE BANKRUPTCY TRACOR HAS GRABBED NEW CONTRACTS THAT FOR NOW APPEAR SECURE FROM PENTAGON BUDGET CUTTERS THE COMPANY'S FLIGHT SERVICES DIVISION BEAT OUT HONEYWELL INC FOR A FIVEYEAR 86 MILLION PROGRAM TO DEVELOP AND PRODUCE THE NEXT GENERATION OF UNMANNED DRONE AIRCRAFT USED FOR TRAINING AND TARGET PRACTICE MOST RECENTLY TRACOR'S BIGGEST DIVISION APPLIED SCIENCES RECEIVED A 367 MILLION NAVY CONTRACT TO PROVIDE ENGINEERING AND SUPPORT FOR ELECTRONIC FRIENDORFOE IDENTIFICATION SYSTEMS SUCH SERVICE CONTRACTS WHICH GENERALLY ARE COSTPLUS ARRANGEMENTS THAT CARRY LITTLE RISK FOR CONTRACTORS AREN'T VERY PROFITABLE BUT THEY PROVIDE A STEADY STREAM OF CASH MORE IMPORTANT THEY HAVE A FUTURE AS BUDGETS ARE CUT SERVICE AND SUPPORT PERSONNEL ARE THE FIRST TO GO MR MCCUTCHAN SAYS THEY STILL MUST HAVE INFRASTRUCTURE AND THAT'S WHAT THE SUPPORT COMPANIES PROVIDE TO PAY FOR THE PURCHASE TRACOR IS ARRANGING A 100 MILLION SUBORDINATED DEBT OFFERING THAT IT HOPES TO COMPLETE BY LATE SUMMER AND IS REFINANCING ITS CURRENT BANK LOAN WHICH STOOD AT ABOUT 46 MILLION AT THE END OF THE FIRST QUARTER GIVEN THE COMPANY'S RECENT HISTORY EVEN TRACOR EXECUTIVES ARE A LITTLE NERVOUS ABOUT NEW BORROWINGS IT CERTAINLY GIVES US A LOT MORE LEVERAGE THAN I WOULD LIKE TO SEE AT THIS POINT SAID ROBERT FLOYD TRACOR'S CHIEF FINANCIAL OFFICER BUT IT APPEARS WE WILL BE ABLE TO PAY THAT DOWN IN FAIRLY SHORT ORDER ANALYSTS TOO ARE CONFIDENT THAT THE COMBINED OPERATIONS CAN COVER THE LARGER DEBT LOAD LAST YEAR VITRO EARNED 19 MILLION BEFORE INTEREST TAXES AND DEPRECIATION AND TRACOR EARNED 14 MILLION LOOKING AHEAD EXPERTS BELIEVE ELECTRONIC WARFARE SYSTEMS WILL REMAIN IN HOT DEMAND AS A RESULT OF THEIR SUCCESS IN THE PERSIAN GULF WAR AND DEFENSE SPENDING PROJECTED TO TOP 250 BILLION IN 1998 IS STILL A LOT OF BUSINESS SAYS MR INMAN WHO LEFT WESTMARK IN 1989 BUT HE ADDS YOU'RE GOING TO HAVE A LOT OF COMPANIES GOING AFTER THAT SURVIVING BUSINESS THAT'S THE REAL CHALLENGE LORAL CORP IN ELECTRONIC COUNTERMEASURES HONEYWELL INC IN DRONES GENERAL ELECTRIC CO'S GE GOVERNMENT SERVICES UNIT AND ALLIEDSIGNAL INC'S BENDIX FIELD ENGINEERING CORP AMONG OTHERS IN ELECTRONIC COMMUNICATIONS SERVICE AND SUPPORT TRACOR INC LAST YEAR EARNED 11 MILLION BEFORE INTEREST AND TAXES WHILE VITRO CORP EARNED 19 MILLION BEFORE INTEREST AND TAXES ADDITIONALLY TRACOR IN 1991 REPORTED NET INCOME OF 389 MILLION INCLUDING AN EXTRAORDINARY GAIN OF 428 MILLION FROM THE FORGIVENESS OF DEBT FRIDAY'S CORPORATE FOCUS ARTICLE MISSTATED THESE FIGURES 9306250036 930625 BUSINESS BRIEF ISOMEDIX INC COMPANY'S SHARES FALL 26 ON 1993 EARNINGS OUTLOOK ISOMEDIX INC'S SHARES GOT CLOBBERED AFTER IT SAID IT EXPECTS EARNINGS AND REVENUE FOR 1993 TO BE BELOW EXPECTATIONS ISOMEDIX SHARES CLOSED AT 14375 DOWN 5125 OR 26 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING THE WHIPPANY NJ COMPANY AN OPERATOR OF MEDICAL STERILIZATION FACILITIES SAID THAT EARNINGS FOR THE SECOND QUARTER ARE EXPECTED TO BE 27 CENTS A SHARE COMPARED WITH 28 CENTS A SHARE IN 1992 REVENUE GROWTH IN 1993 WILL BE LESS THAN PREVIOUSLY EXPECTED AFTER THE COMPANY REPORTED REVENUE OF 367 MILLION IN 1992 AND EARNINGS IN 1993 ARE LIKELY TO BE AT ABOUT THE 78 MILLION LEVEL OF LAST YEAR ISOMEDIX SAID THE LOWER EXPECTATIONS ARE PRIMARILY DUE TO UNEXPECTED DELAYS IN ACHIEVING PROJECTED USE LEVELS AT ITS NEW ETHYLENE OXIDE GAS STERILIZATION FACILITY IN NORTHBOROUGH MASS AND ITS NEW GAMMA STERILIZATION FACILITY IN CHESTER NY ISOMEDIX ATTRIBUTED THE REVENUE SHORTFALL PRINCIPALLY TO CUSTOMER DELAYS IN VALIDATING PRODUCTS AT ITS NEW FACILITIES AND TO A LESSER EXTENT TO SLOWERTHANANTICIPATED CONVERSION BY MAJOR HOSPITAL SUPPLY MANUFACTURERS FROM INHOUSE ETHYLENE OXIDE STERILIZATION TO CONTRACT STERILIZATION 9306250035 930625 INTERNATIONAL WORLD ECONOMY IN CHINA FORMER FARMING COMMUNE BECOMES MARKETDRIVEN FACTORY ZONE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL MA QIAO CHINA BACK IN 1971 THE DRIVE TO THIS FARMING TOWNSHIP JUST OUTSIDE SHANGHAI WAS SLOW AND TEDIOUS THE FEW CARS HAD TO WEAVE AROUND GRAIN DRYING ON THE NARROW ASPHALT HIGHWAY LOCAL PEASANTS FIGURED THE ROAD SHOULD BE PUT TO GOOD USE A REPEAT VISIT 10 YEARS LATER FOUND DIFFERENCES AT WHAT OFFICIALLY REMAINED A PEOPLE'S COMMUNE OF THE SORT INSPIRED BY MAO TSETUNG THIRTYNINE WORKSHOPS WERE MAKING THINGS SUCH AS SILK PAJAMAS AND CONCRETE CANAL BOATS YET MA QIAO WHICH MEANS HORSE BRIDGE WAS STILL POOR IF LESS SO DESPITE ITS FERTILE RICE LANDS BUT GETTING THERE IN 1993 IS A STARTLING EXPERIENCE FOR ANYONE WHO HASN'T SEEN CHINA LATELY TRAFFIC JAMS AND STOPLIGHTS REPEATEDLY HALT PROGRESS ALONG WHAT HAS BECOME A FOURLANE CONCRETE ROAD LEADING THROUGH URBAN SPRAWL GONE ARE MOST RICE PADDIES AND SAGGING PEASANT HOMES IN THEIR PLACE STAND NEW FACTORIES APARTMENT BLOCKS AND AMONG OTHER THINGS A JAPANESE SCHOOL AND THE RED RESTAURANT BECKONING TRAVELERS WITH A NEON COCKTAILGLASS SIGN INDUSTRY OUTSIDERS AND CONSUMERISM HAVE ARRIVED MA QIAO ITSELF NO LONGER IS CALLED A COMMUNE LIKE SO MANY OTHER COMMUNITIES IN COASTAL CHINA IT'S A FACTORY ZONE PLUGGED FIRMLY INTO THE GLOBAL ECONOMY THUS ALMOST NOTHING IS FAMILIAR A FIVESTORY OFFICE COMPLEX COMPLETE WITH A VISITORS CENTER IN TRADITIONAL DESIGN BUILT AROUND A GOLDFISH POND HAS REPLACED A SHABBY COMMUNE HEADQUARTERS NEW ROADS CRISSCROSS THE TOWNSHIP'S 19 SQUARE MILES TO SERVE ITS 30000 PEOPLE WHILE ANIMALS RETAIN ECONOMIC IMPORTANCE ABOVE ALL THERE ARE FACTORIES WHERE WATER BUFFALO ONCE ROAMED IN FACT MA QIAO NOW HAS 270 FACTORIES TWENTYTHREE ARE LINKED TO LARGE STATE ENTERPRISES AND 15 ARE JOINT VENTURES WITH FOREIGNERS MOST ARE EXPORTERS SHEN SHUNLIANG A TOWNSHIP OFFICIAL WITH A BEEPER ON HIS BELT GIVES CREDIT TO CHINA'S ECONOMIC REFORMS THE FREE MARKET RULES AND COMMUNITIES INVEST FARM AND OTHER PROFITS INTO TOWN AND VILLAGE ENTERPRISES THAT ARE OWNED COLLECTIVELY BUT MANAGED LIKE PRIVATE BUSINESSES ONLY HALF THE MA QIAO LABOR FORCE STILL WORKS THE LAND AND THE SHARE IS FALLING FOR INSTANCE THE TOWN OPERATES A TAXI COMPANY IN SHANGHAI WITH 500 VOLKSWAGENS AND HOPES TO EXPAND THE FLEET TO 5000 IN SEVEN YEARS COMPLETE WITH A BEIJING BRANCH POLITICS HAVE CHANGED TOO IN 1971 A MA QIAO OFFICIAL CLAIMED CROPS DID WELL BECAUSE WE APPLY THE REVOLUTIONARY IDEOLOGY OF CHAIRMAN MAO IN A LIVING WAY BUT SHE'S LONG GONE AND MR SHEN HAS NO TIME FOR SUCH STUFF WITHOUT THE REFORM POLICY YOU COULDN'T HAVE SUCH QUICK DEVELOPMENT NO MATTER WHAT YOU FOLLOWED HE SAID HE HAS LOTS OF TIME FOR FOREIGN INVESTORS SO FAR MA QIAO HAS ATTRACTED GERMANS TO MAKE SAUSAGE CASINGS ITALIANS TO MAKE CARDBOARD BOXES THAIS FOR PRINTING INK SOUTH KOREANS FOR BOTTLE CAPS AND TAIWANESE FOR COSMETICS AMONG OTHERS MR SHEN WANTS MORE IF YOU KNOW ANYONE WHO WANTS TO BUILD A FACTORY SEND HIM HERE HE IMPLORES CHANGE IS MOST RADICAL AT QI ZHONG VILLAGE HOME TO 1130 OF MA QIAO'S CITIZENS ONCE THE POOREST PLACE OF ALL A NEW BOSS TOOK OVER IN 1983 AND SET OUT TO MAKE IT RICH HE GOT THE PEASANTS TO GROW FRAGRANT MUSHROOMS FOR SHANGHAI RESTAURANTS AND EARNED 200000 YUAN OFFICIALLY 35000 UNOFFICIALLY HALF AS MUCH THE FIRST YEAR THAT SEED MONEY ENTICED A SHANGHAI CABLE AND WIRE COMPANY INTO BUILDING A SMALL FACTORY AS QI ZHONG'S FIRST JOINT VENTURE AND THE VILLAGE HASN'T LOOKED BACK LAST YEAR THE VILLAGE HAD REVENUE OF 750 MILLION YUAN WITH PROFIT OF 35 MILLION FOR REINVESTMENT CHINA'S LEADER DENG XIAOPING CALLED TO GIVE HIS BLESSING BUT ITS FOUR CURRENT FACTORIES ARE ONLY THE BEGINNING FOR QI ZHONG IS ENTERING THE LEISURE BUSINESS TO TAP THE URBAN WEALTH OF SHANGHAI IT BUILT A TENNIS STADIUM JUST ACROSS A CANAL FROM AN ORCHARD THAT WILL BECOME A HOLIDAY CAMP AMERICAN PLANNERS ARE DESIGNING A GOLF COURSE FOR A SITE NOT FAR FROM THE VILLAGE'S JAPANESESTYLE SINGALONG BAR AND DISCO A LONE FARMER AND HIS WATER BUFFALO PLOWING A PADDY NEAR THE ALLWEATHER TENNIS COURTS SEEM ALMOST LIKE STAGE PROPS MA QIAO IS HARDLY TYPICAL OF ALL CHINA BEING NEAR SHANGHAI WAS ALWAYS AN ADVANTAGE AND THE TOWNSHIP NOW EXPLOITS A BOOM AS CHINA'S FORMER COMMERICAL CENTER REGAINS PAST GLORIES MANY OTHER RURAL TOWNS ESPECIALLY THOSE FAR INLAND LINGER NEAR THE POVERTY LINE IN SOME POOR PEASANTS HAVE RIOTED TO PROTEST ONEROUS TAXES AND CORRUPT OFFICIALS BUT IF MA QIAO IS A FAVORED SHOWPLACE IT IS A SELFFINANCING ONE NO STATE FUNDS ARE SPENT HERE IN FACT LAST YEAR IT PAID 170 MILLION YUAN IN ASSORTED TAXES COMPARED WITH ONLY ONE MILLION A DECADE AGO MORE IMPORTANT ITS ECONOMIC PROGRESS LIKE THAT OF CHINA ITSELF IS REAL MA QIAO REPRESENTS WHAT BEIJING WANTS THE WHOLE NATION TO BECOME PROSPEROUS INNOVATIVE AND A FORCE IN THE WORLD ECONOMY 9306250034 930625 WORKERS REJECT SCHEDULE CHANGES AT GMTOYOTA SITE BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT A WORKER REVOLT THREATENED PLANS TO ADD AS MANY AS 1000 JOBS IN THE CALIFORNIA ASSEMBLY PLANT JOINTLY OWNED BY TOYOTA MOTOR CORP AND GENERAL MOTORS CORP A UNION LEADER SAID ON MONDAY THE 3300 HOURLY WORKERS AT THE NEW UNITED MOTOR MANUFACTURING INC JOINT VENTURE VOTED DOWN A REQUEST BY TOYOTA MANAGERS TO ALLOW A THREECREW OPERATION IN NUMMI'S STAMPING PLANT AND IN A PROPOSED PLASTICBUMPER OPERATION THE VOTE RAN NEARLY 2 TO 1 AGAINST PERMITTING THE SOCALLED ALTERNATIVE WORK SCHEDULE BECAUSE WORKERS WERE CONCERNED ABOUT LOSING OVERTIME PAY THE VOTE COULD KILL TOYOTA'S PLANS TO EXPAND TRUCK PRODUCTION AND TO BRING SEVERAL MAJOR ASSEMBLY OPERATIONS TO THE FREMONT CALIF PLANT ACCORDING TO CHARLIE CURRY PRESIDENT OF THE UNITED AUTO WORKERS LOCAL 2244 WHO SUPPORTED THE THREECREW SYSTEM WE'RE REEVALUATING ALL FUTURE EXPANSION PLANS A NUMMI SPOKESMAN SAID WE RESPECT THE DECISION OF THE WORKERS BUT WE THINK THE ALTERNATIVE WORK SCHEDULE IS VITAL FOR KEEPING NUMMI COMPETITIVE THE SETBACK COMES AS TOYOTA AND GM DISCUSS EXTENDING THE VENTURE BEYOND ITS 1996 EXPIRATION DATE ONE OF THE KEY ISSUES IN THOSE DISCUSSIONS IS NUMMI'S PROFITABILITY WHICH HAS BEEN MARGINAL IN RECENT YEARS ADDING MORE PICKUP PRODUCTION WOULD HELP NUMMI'S BOTTOM LINE UNDER THE THREECREW SYSTEM WHICH IS BECOMING INCREASINGLY POPULAR IN THE AUTO INDUSTRY WORKERS PUT IN FOUR 10HOUR DAYS MR CURRY SAID THE WORKERS WERE MISLED ON THE OVERTIME ISSUE BY A SMALL BAND OF DISSIDENTS DESPITE GUARANTEES BY MANAGEMENT THAT WORKERS WOULD STILL GET OVERTIME THIS SUBVERSIVE GROUP WAS FEEDING THE WORKERS JIM JONES KOOLAID MR CURRY SAID UNTIL THE VOTE THIS WEEK THE NUMMI PLANT HAD BEEN HELD UP AS A MODEL OF WORKERMANAGEMENT COOPERATION THE PLANT IS STAFFED MAINLY BY FORMER GM WORKERS WHO HAD A REPUTATION AS A DIFFICULT WORK FORCE WHEN THE PLANT WAS RUN BY GM BUT UNDER TOYOTA MANAGEMENT THE JOINT VENTURE HAS ACHIEVED LEVELS OF QUALITY AND PRODUCTIVITY THAT ARE VIRTUALLY ON PAR WITH TOYOTA'S JAPANESE PLANTS NUMMI STARTED OUT BUILDING ONE CAR FOR TOYOTA THE COROLLA AND A SISTER CAR FOR GM NOW THE GEO PRIZM BUT IN AUGUST 1991 IT IT BEGAN ASSEMBLING A TOYOTA COMPACT PICKUP TRUCK AND THE PLANT NOW PRODUCES ROUGHLY 325000 VEHICLES A YEAR NUMMI'S TRUCK PRODUCTION HAS BECOME PARTICULARLY CRITICAL TO TOYOTA BECAUSE THE STRONG YEN IS MAKING MANUFACTURING IN JAPAN MORE EXPENSIVE IN ADDITION TRUCKS MANUFACTURED IN THE US ESCAPE THE 25 TARIFF SLAPPED ON IMPORTED TRUCKS BY THE US GOVERNMENT UNTIL THE VOTE TOYOTA HAD PLANNED TO BRING PRODUCTION OF A FOURWHEELDRIVE PICKUP TRUCK AND POSSIBLY A COMPACT SPORT UTILITY VEHICLE TO FREMONT IN 1995 MR CURRY SAID IN ADDITION TOYOTA HAD PLANS TO BEGIN ASSEMBLING AXLES IN THE PLANT AND TO PRODUCE SERVICE PARTSTHE BODY PARTS MOST FREQUENTLY USED TO REPAIR CRASHDAMAGED VEHICLES AT NUMMI HE SAID NOW NUMMI SAYS THAT IT IS REVIEWING ALL THOSE PLANS AND THAT SOME OF THE WORK DESTINED FOR FREMONT MIGHT BE SENT TO AN OUTSIDE SUPPLIER NUMMI PARTICULARLY WANTED THE THREECREW SYSTEM IN THE STAMPING PLANT WHICH IS ALREADY WORKING AT CAPACITY MANY WORKERS IN THE STAMPING PLANT ARE WORKING SO MUCH OVERTIME THEY ARE ALMOST DOUBLING THEIR SALARIES MR CURRY SAID 9306250033 930625 BUSINESS BRIEFS GENERAL ELECTRIC CO'S GE POWER GENERATION OPERATION RECEIVED A 30 MILLION CONTRACT FROM VERMONT YANKEE NUCLEAR POWER CORP TO REPLACE TWO NUCLEAR LOWPRESSURE STEAM TURBINE SECTIONS MARTIN MARIETTA CORP RECEIVED A CONTRACT FROM THE SWEDISH AIR FORCE TO DESIGN DEVELOP AND MANUFACTURE AN IMPROVED FLIGHTCONTROL COMPUTER FOR THE SAAB SCANIA AB/SWEDISH AIR FORCE JAS GRIPEN FIGHTER TERMS WEREN'T DISCLOSED ICF INC A UNIT OF ICF INTERNATIONAL INC RECEIVED A 20 MILLION CONTRACT OVER 2 1/2 YEARS TO WORK WITH THE ENVIRONMENTAL PROTECTION AGENCY'S STRATOSPHERIC OZONE PROTECTION PROGRAM UNITED PARCEL SERVICE OF AMERICA INC WILL BUILD A 55 MILLION DATA COMMUNICATIONS CENTER IN ATLANTA CANTERBURY EDUCATIONAL SERVICES INC SIGNED A LETTER OF INTENT TO ACQUIRE MOTIVATIONAL SYSTEMS INC TERMS WEREN'T DISCLOSED 9306250032 930625 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON AND CONGRESS MAP TAXBILL CONFERENCECOMMITTEE STRATEGIES PRESIDENTIAL AIDES ARE TIGHTLIPPED ON THE SORT OF TAXINCREASE COMPROMISE THEY FAVOR PREFERRING TO STRESS THE GOODIES PRESSING HARD TO SAVE WHAT IS LEFT OF ITS INVESTMENT AGENDA THE WHITE HOUSE INSISTS ON EMPOWERMENT ZONES BIGGER TAX BREAKS FOR SMALLBUSINESS EQUIPMENT PURCHASES AND EXPANSION OF THE EARNEDINCOME TAX CREDIT A BIGGER GASOLINE TAX THAN THE SENATE'S 43CENT LEVY REMAINS AN OPTION BUT WOULD BE A HARD SELL ROSTENKOWSKI PREDICTS THE GAS TAX MAY BE WEDDED TO A NEW LEVY ON RESIDENTIAL AND COMMERCIAL UTILITY BILLS A BIGGER TAX WOULD ALLOW THE CONFERENCE TO PAY FOR CLINTONBACKED TAX BREAKS AND TO AVOID SUCH DEEP MEDICARE CUTS INSTANT FEEDBACK HOUSE DEMOCRATIC CONFEREES WILL BRIEF RANKANDFILE LAWMAKERS DAILY ON THE PROGRESS OF TALKS COST CONCERNS LEAD TO A RETHINKING OF HEALTHPACKAGE BENEFITS MENTALHEALTH AND DENTAL BENEFITS ARE AMONG THOSE THAT MAY BE SCALED BACK CLINTON PLANNERS ALSO CONSIDER RAISING THE ANNUAL OUTOFPOCKET MAXIMUM PERHAPS BEYOND 3000 AND THEY CONSIDER STRETCHING OUT THE PHASEIN TIME FOR THE HUGELY EXPENSIVE EFFORT TO BRING MEDICAID RECIPIENTS INTO A NATIONAL HEALTH SYSTEM IN A STEP TO KEEP THE HEALTH PLAN'S FINANCIAL BASE AS BROAD AS POSSIBLE HILLARY RODHAM CLINTON TELLS A HOUSE GROUP THAT ONLY EMPLOYERS WITH MORE THAN 5000 EMPLOYEES MAY BE ALLOWED TO OPT OUT OF THE HUGE INSURANCE BUYING POOLS G7 OFFICIALS SCRAMBLE TO FINISH WORK ON BIG ISSUES BEFORE THE SUMMIT OLD HANDS SAY THAT NEVER BEFORE HAVE SO MANY ISSUES BEEN UNRESOLVED SO CLOSE TO THE ECONOMIC SUMMIT DESPITE THE POLITICAL TURMOIL IN JAPAN THE US PRESSES IT IN TALKS THIS WEEKEND TO AGREE TO THE MUCHDISCUSSED FRAMEWORK FOR USJAPANESE TRADE ANOTHER SET OF LASTMINUTE TALKS IS AIMED AT GETTING MORE ALLIED SUPPORT FOR CLINTON'S PROPOSED RUSSIAN PRIVATIZATION FUND JAPAN'S WILLINGNESS TO LOWER BARRIERS FOR FOREIGN FINANCIALSERVICES FIRMS HELPS BUT ODDS REMAIN AGAINST A BREAKTHROUGH IN TRADE TALKS AIMED AT OPENING MARKETS WORLDWIDE US OFFICIALS SEE A POSSIBILITY OF PROGRESS ON JAPANESE LIQUOR IMPORTS BUT WOOD PRODUCTS REMAIN A PROBLEM THE INDUSTRY IS A BIG SUPPORTER OF THE TROUBLED LIBERAL DEMOCRATIC PARTY CRACKING THE JAPANESE BAN ON RICE IMPORTS IS OFF THE TABLE CHINESE LEADERS BADLY WANT A CLINTON VISIT SAYING IT WOULD AID REFORMERS IN THEIR RUNNING BATTLE WITH CONSERVATIVES CLINTON IS UNLIKELY TO COME AS LONG AS LI PENG WIDELY HELD RESPONSIBLE FOR TIANANMEN REMAINS PRIME MINISTER BUT LI'S HEART CONDITION RAISES DOUBTS ABOUT WHETHER HE WILL SURVIVE THE YEAR AS GOVERNMENT BOSS FRIEND IN NEED UNIVERSITY OF PENNSYLVANIA PRESIDENT HACKNEY CLINTON'S EMBATTLED CHOICE TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIES WILL GET A BOOST AT HIS CONFIRMATION HEARING TODAY HE WILL BE ESCORTED NOT ONLY BY PENNSYLVANIA SEN WOFFORD BUT ALSO BY ALABAMA'S SHELBY A CONSERVATIVE WHOSE BACKING FOR THE ALABAMABORN HACKNEY MAY DEFUSE ATTACKS FROM THE RIGHT WOMEN APPOINTEES CONTINUE TO BE A PRIORITY FOR THE WHITE HOUSE PLANS ARE TO NAME FORMER REP SHIRLEY CHISHOLM AMBASSADOR TO JAMAICA AND FORMER NEW YORK CITY COUNCIL PRESIDENT CAROL BELLAMY TO HEAD THE PEACE CORPS BUT WHITE MEN STILL GET THE MOST IMPORTANT FOREIGN POLICY SLOTS EMORY UNIVERSITY PRESIDENT JAMES LANEY IS SLATED TO BE ENVOY TO SOUTH KOREA CLINTON PROMISES NEW LOS ANGELES MAYOR RIORDAN THAT A CRIME BILL WILL BE PASSED BY YEAR'S END BUT AIDES STRUGGLE MIGHTILY TO FIND THE 5 BILLION NEEDED TO MEET THE PRESIDENT'S PLEDGE OF 100000 NEW COPS ON THE STREET A BIG STUMBLING BLOCK IS ATTORNEY GENERAL RENO WHO QUESTIONS WHETHER SO MUCH MONEY CAN BE SPENT WISELY CONSERVATIVE DEMOCRATS WERE ANGERED AT HER FAILURE TO REITERATE CLINTON'S PLEDGE IN A TV APPEARANCE ABORTIONLAW CHANGES MOVE SLOWLY IN CONGRESS AND THE COURTS THE FREEDOM OF CHOICE BILL IS SLOWED UP BY PROTESTS FROM ANTIABORTION GROUPS WHO ARGUE THAT IT GOES BEYOND ROE VS WADE MEANWHILE GINSBURG'S NOMINATION LESSENS THE CRISIS ATMOSPHERE AMONG ABORTIONRIGHTS DEFENDERS BACKERS OF THE BILL ARE SO FAR UNABLE TO MUSTER THE VOTES FOR A RULE THAT WOULD BAR AMENDMENTS TO IT BUT A VOTE ON THE MEASURE COULD STILL COME NEXT MONTH MEANWHILE COURTS AROUND THE COUNTRY GRAPPLE WITH THE SUPREME COURT'S NARROWING OF ROE LAST YEAR IN A PHILADELPHIA TRIAL SCHEDULED FOR THIS SUMMER ABORTIONRIGHTS ADVOCATES WILL ARGUE THAT THE PENNSYLVANIA PROVISIONS THE COURT UPHELD LAST YEAR CONSTITUTE IN PRACTICE THE UNDUE BURDEN THAT SWING JUSTICES SAID IS IMPERMISSIBLE AT LEAST FOUR JUSTICES BLACKMUN SOUTER O'CONNOR AND STEVENS HAVE INDICATED THAT SUCH ASAPPLIED CHALLENGES ARE LEGITIMATE MINOR MEMOS SHARON PERCY ROCKEFELLER PRESIDENT OF THE LOCAL PUBLIC TV STATION WRITES MEMBERS THAT I NEVER DREAMED WHEN I MARRIED A ROCKEFELLER THAT I WOULD WIND UP SPENDING HALF MY TIME ASKING PEOPLE FOR MONEY THE WORD AT THE WHITE HOUSE IS THAT SUPREME COURT NOMINEE GINSBURG IS CHARISMATICALLY CHALLENGED A BASKETBALL AUTOGRAPHED BY MICHAEL JORDAN FETCHES 600 AT A CHARITY AUCTION BUT AN ELECTIONNIGHT SWEATSHIRT SIGNED BY CLINTON BRINGS ONLY 75 9306250031 930625 BUSINESS BRIEF MERCHANTS GROUP INC CLASSACTION SUIT IS FILED AGAINST INSURANCE CONCERN MERCHANTS GROUP INC SAID A CLASSACTION SUIT HAS BEEN FILED AGAINST IT IN NEW YORK STATE SUPREME COURT CHARGING BREACH OF FIDICIARY DUTIES TO MINORITY SHAREHOLDERS THE SUIT ALLEGES THE COMPANY ITS DIRECTORS AS WELL AS THE GROUP THAT OWNS 55 OF ITS COMMON STOCK MERCHANTS MUTUAL INSURANCE CO AND MERCHANTS INSURANCE CO OF NEW HAMPSHIRE INC HARMED MINORITY SHAREHOLDERS BY PURCHASING UP TO A 135 MILLION SURPLUS NOTE ISSUED BY MUTUAL AND SIMULTANEOUSLY REDUCING THE PRINCIPAL AMOUNT PLUS ACCRUED RETURN ON SUCH SURPLUS NOTE FROM ABOUT 35 MILLION TO 135 MILLION THE DETAILS CAME FROM A NEWS RELEASE AND A SPOKESMAN WOULDN'T GIVE THE NAME OF THE PLAINTIFF REPRESENTING THE CLASS THE SUIT ALSO ALLEGES THAT THE DEFENDANTS BREACHED THEIR FIDUCIARY OBLIGATIONS BY APPROVING THE SALE OF 950000 ADDITIONAL COMMON SHARES IN A PROPOSED PUBLIC OFFERING AT AN INADEQUATE PRICE THAT DILUTED THE VALUE OF THE MINORITY'S SHARES THE COMPANY SAID IT INTENDS TO DEFEND THIS ACTION VIGOROUSLY THE COMPANY ALSO SAID IT OFFERED 1850000 SHARES OF ITS COMMON STOCK AT 15 A SHARE THE PROCEEDS WILL BE USED TO EXPAND THE INSURANCE BUSINESS AND FOR GENERAL CORPORATE PURPOSES 9306250030 930625 ZOO SEEKS CHINESE PANDAS BABBITT RAISES CONCERNS SAN DIEGO THE SAN DIEGO ZOO WHICH HAS APPLIED WITH THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE FOR PERMISSION TO IMPORT A PAIR OF RARE GIANT PANDAS FROM CHINA WAS TOLD BY INTERIOR SECRETARY BRUCE BABBITT THAT HE IS NOT OPTIMISTIC THAT OUR BIOLOGISTS CAN ISSUE THE PERMIT YOU SEEK THE WORLD WILDLIFE FUND AND OTHERS HAD OPPOSED THE ZOO'S APPLICATION WHICH FOLLOWS YEARS OF NEGOTIATIONS WITH THE CHINESE FOR A SPECIAL THREEYEAR BREEDING LOAN WHICH THE ZOO SAYS WILL IMPROVE CHANCES FOR HELPING THE ENDANGERED ANIMAL REPOPULATE THE SAN DIEGO ZOO IS BUILDING AN 850000 ENCLOSURE FOR THE TWO PANDAS SHI SHI AND SHUN SHUN IN ANTICIPATION OF RECEIVING A PERMIT MR BABBITT SAID HE EXPECTED A RULING IN A FEW DAYS HE EXPRESSED CONCERN THAT BECAUSE THE PANDAS SOUGHT BY SAN DIEGO HAD BEEN CAPTURED IN THE WILD IMPORTING THEM TO THE US MIGHT SET A PRECEDENT AND GENERATE IRRESISTIBLE PRESSURE FOR THE CAPTURE AND EXPORT OF PANDAS FROM CHINA THE SAN DIEGO HAD AGREED TO PAY CHINA 1 MILLION A YEAR AS PART OF THE TERMS OF THE NEW LOAN A SAN DIEGO ZOO SPOKESMAN SAID MR BABBITT'S PESSIMISM IS BASED ON SOME VERY POOR INFORMATION 9306250029 930625 PEPSI LOOKS FOR POP FROM ASIAN MARKETS BUT SOME WONDER IF COKE'S LEAD IN REGION IS TOO BIG BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG PEPSICOLA INTERNATIONAL WANTS ITS SOFT DRINKS TO BE THE CHOICE OF A NEW GENERATION OF MIDDLECLASS ASIAN CONSUMERS BUT AS THE INTERNATIONAL BEVERAGE DIVISION OF PEPSICO INC EMERGES FROM A THREEYEAR REORGANIZATION INDUSTRY WATCHERS WONDER WHETHER COCACOLA CO HAS BEATEN PEPSI TO THE PUNCH INDUSTRY OBSERVERS COMPETITORS AND FORMER PCI EXECUTIVES AGREE THE REORGANIZATION WAS NEEDED AMONG THE CHANGES PCI REPLACED ITS SENIOR MANAGEMENT TEAM FOR THE ASIANPACIFIC REGION CONSOLIDATED REGIONAL MANAGEMENT IN HONG KONG AND MOVED MIDDLELEVEL MARKETING MANAGERS INTO THE FIELD PCI ALSO HAS BEGUN TO ADDRESS PERSISTENT PROBLEMS IN RELATIONSHIPS WITH LOCAL BOTTLERS BUT PEOPLE CLOSE TO PCI SAY THE CHANGES THOUGH A LONGTERM BOON HAVE SLOWED PRODUCT INTRODUCTIONS IN THE REGION AND GIVEN COKE MORE TIME TO CONSOLIDATE ITS LEAD IN ORDER TO CLOSE THE GAP THEY SAY PEPSI WILL HAVE TO SHOW A RESOURCEFULNESS THAT WILL TEST THE COMPANY'S METTLE WHILE PCI EXECUTIVES DISPUTE THE WIDE LEADS CLAIMED BY COKE IN SOME MARKETS THEY ACKNOWLEDGE THAT PEPSICOLA THE COMPANY'S FLAGSHIP SOFT DRINK TRAILS COKE IN EVERY MAJOR ASIANPACIFIC MARKET EXCEPT THAILAND WITH A BIG LAG IN SUCH KEY COUNTRIES AS JAPAN SOUTH KOREA AND THE PHILIPPINES NONETHELESS PCI EXECUTIVES SAY THE REORGANIZATION HAS ALREADY RESULTED IN A SHARP IMPROVEMENT IN PERFORMANCE CITING DOUBLEDIGIT GROWTH IN JAPAN CHINA AND OTHER MARKETS LAST YEAR THEY SAY THE ASIANPACIFIC DIVISION WAS THE FASTESTGROWING OF PCI'S SIX INTERNATIONAL OPERATING UNITS WITH SALES VOLUME UP 11 COMPARED WITH 7 GROWTH FOR THE INTERNATIONAL DIVISION AS A WHOLE LAST YEAR PEPSICO'S BEVERAGE SALES OUTSIDE THE US REACHED 21 BILLION OR 28 OF ITS TOTAL BEVERAGE SALES OF 76 BILLION WITH THE POTENTIAL OF CHINA AND VIETNAM LARGELY UNTAPPED BY FOREIGN BEVERAGE COMPANIES TONY ILLSLEY PRESIDENT OF THE ASIANPACIFIC DIVISION SINCE JANUARY SAYS THE COMPANY CAN AVOID THE COSTLY MARKETSHARE WARS THAT HAVE WEIGHED ON PROFITS IN MORE MATURE WESTERN AND EVEN SOME ASIAN MARKETS THE GOOD NEWS FOR BOTH PEPSI AND COKE IS THAT WE CAN BOTH BENEFIT FROM THE GROWTH OF THE MARKET RATHER THAN IT BEING A CASE OF HOW DO I GET ONE SHARE POINT HE SAYS THE WHOLE PLACE HAS A LOT OF ROOM FOR BOTH OF US MAYBE SO BUT OTHERS IN THE INDUSTRY SAY THAT FOR PEPSI TO BUILD A LASTING PRESENCE IN ASIA IT WILL HAVE TO DO MORE THAN TAP EMERGING MARKETS YES THERE'S GROWTH SAYS AN INDUSTRY EXECUTIVE BUT THE REVENUE AND PROFITS GENERATED OFF THE SMALLER MARKET SEGMENTS PCI CONTROLS DON'T NECESSARILY ALLOW YOU TO SPEND THE MONEY ON ADVERTISING THAT YOU NEED TO GROW THE BRAND INCREASING ITS MARKET SHARE WILL REQUIRE PCI TO TAKE AN INNOVATIVE APPROACH TO AREAS SUCH AS DISTRIBUTION AND MARKETING SAY INDUSTRY OBSERVERS BECAUSE THEY'RE RELATIVELY FAR BEHIND THEY HAVE TO BE TERRIBLY CREATIVE ABOUT THEIR TACTICS IN THE MARKETPLACE SAYS GEORGE BAEDER MANAGING DIRECTOR OF PAC RIM A HONG KONG CONSULTING FIRM THAT WORKS WITH A NUMBER OF PACKAGEDGOODS CLIENTS BUT INCREASING SHARE WHEN YOU'RE NOT THE LEADER CARRIES EXTRA COSTS PARTICULARLY IN ASIA WHERE MARKETING EXECUTIVES SAY CONSUMERPRODUCT COMPANIES MUST PAY FOR ACCESS TO SHELF SPACE IN MOST MARKETS NOTHING DEMONSTRATES THE COST OF PLAYING CATCHUP AS VIVIDLY AS PCI'S RECORD IN THE PHILIPPINES LITTLE MORE THAN 10 YEARS AGO PEPSI WAS THE MARKET LEADER IN THE PHILIPPINES WHICH HAS ONE OF THE REGION'S HIGHEST RATES OF SOFTDRINK CONSUMPTION BUT BUSINESS BEGAN TO SAG IN 1982 AFTER A SCANDAL IN WHICH PEPSI'S LOCAL BOTTLER OVERSTATED EARNINGS BY 92 MILLION TODAY THANKS TO STEADY PROGRESS BY COKE AND WHAT OBSERVERS CHARACTERIZE AS A LACK OF FOCUS AT PCI PCI'S SHARE OF THE BEVERAGE MARKET HAS FALLEN TO 18 ACCORDING TO INDUSTRY ESTIMATES WHILE COKE'S SHARE HAS RISEN TO 76 FROM WELL BELOW 50 LAST YEAR PCI EMBARKED ON AN AGGRESSIVE DRIVE TO CLOSE THAT GAP FOCUSING ON A PROMOTIONAL CAMPAIGN THAT FEATURED A BOTTLECAP LOTTERY THE COMPANY INVESTED HEAVILY TO PRODUCE A SERIES OF TV COMMERCIALS TO ENCOURAGE PARTICIPATION AS WELL AS DAILY SPOTS ANNOUNCING WINNERS THE RESPONSE WAS ENCOURAGING PEPSI'S MARKET SHARE INCREASED DURING THE CAMPAIGN BUT AN ERROR IN ANNOUNCING A WINNING NUMBER ENDED IN A PUBLICRELATIONS DISASTER WHEN RIOTING ERUPTED OUTSIDE A PEPSI BOTTLING PLANT NEAR MANILA LITIGATION BY A HANDFUL OF DISGRUNTLED CUSTOMERS IS PENDING PEPSI BOTTLING PLANTS HAVE BEEN RECENT TARGETS OF SABOTAGE INCLUDING AT LEAST ONE GRENADE ATTACK THAT SOURCES CLOSE TO PCI SAY IS LINKED TO THE ANNIVERSARY OF THE PROMOTION THE COMPANY WON'T COMMENT ON RUMORS ITS MANILABASED COUNTRY MANAGER RECEIVED DEATH THREATS BUT OFFICIALS SAY HE LEFT THE PHILIPPINES THIS YEAR AND HAS BEEN REASSIGNED TO A PEPSICO UNIT IN THE US A SUCCESSOR IS EXPECTED TO BE NAMED SOON TO BE SURE FALLOUT FROM THE BOTTLECAP FIASCO IS AS MUCH AN INDICTMENT OF CURRENT CONDITIONS IN THE PHILIPPINE AS IT IS OF PCI BUT THE INCIDENT HAS NONETHELESS ADDED TO THE COMPANY'S REPUTATION FOR MISSED OPPORTUNITIES AND FALSE STARTS IN ASIA PEPSI HAS BEEN QUICKER TO ACT IN INDOCHINA BUILDING ON ITS STRENGTH IN THAILAND PCI AND A VIETNAMESE BOTTLER THIS YEAR SIGNED A FRANCHISE AGREEMENT THAT WILL TAKE EFFECT ONCE THE US EMBARGO IS LIFTED PCI ALSO RECENTLY MOVED TO BEGIN PRODUCTION OF SOFT DRINKS IN CAMBODIA TAKING A 40 STAKE IN ANGKOR BEVERAGE CO MEANWHILE PEPSI PRODUCTS ARE BEING PRODUCED AND SOLD IN BURMA WHERE COKE DOESN'T PRODUCE OR OFFICIALLY DISTRIBUTE PCI IS PLACING ITS BET FOR ASIAN SUCCESS LARGELY ON CHINA WHICH MR ILLSLEY SAYS HE HOPES WILL EVENTUALLY ACCOUNT FOR THE BULK OF ITS REGIONAL BUSINESS PCI SAYS IT NOW CONTROLS 5 OF THE HIGHLY FRAGMENTED CHINESE MARKET STILL DOMINATED BY A PLETHORA OF LOCAL BRANDS THE COMPANY SAYS ITS SALES VOLUME IN CHINA ROSE 31 LAST YEAR AND IS UP 25 SO FAR THIS YEAR INDEPENDENT MARKET RESEARCHERS SAY THERE ISN'T ENOUGH RELIABLE INFORMATION AVAILABLE TO ASSESS CHINESE MARKET SHARE ACCURATELY THEY POINT TO BOTTLINGPLANT NUMBERS AS A MORE RELIABLE INDICATOR BY THIS MEASURE PCI CONTINUES TO TRAIL COKE WITH SEVEN MAINLAND BOTTLERS TO COKE'S 13 PCI SAYS IT HAS INVESTED ABOUT 50 MILLION IN CHINA SO FAR OR ABOUT HALF OF WHAT COKE SAYS IT HAS SUNK INTO THE COUNTRY COKE RECENTLY ANNOUNCED PLANS TO INVEST AN ADDITIONAL 150 MILLION TO OPEN 10 MORE BOTTLING PLANTS IN CHINA IN THE NEXT FIVE YEARS MR ILLSLEY SAYS PCI WILL ANNOUNCE ITS OWN INVESTMENT TARGETS WITHIN THREE TO SIX MONTHS PEPSIWATCHERS GIVE PEPSICO POINTS FOR THE WAY IT HAS COORDINATED ACTIVITIES AMONG ITS DIVISIONS IN CHINA TO DEAL WITH FOREIGNEXCHANGE RESTRICTIONS LETTING THOSE THAT NEED TO IMPORT SUPPLIES TAP THE HARDCURRENCY EARNINGS OF CHINA OPERATIONS THAT EXPORT FOR EXAMPLE ONE OF PCI'S JOINTVENTURE PARTNERS IN CHINA HUA CHANG TOY CO MAKES TOYS AND PROMOTIONAL ITEMS THAT ARE SOLD ABROAD WHILE PEPSICO'S PIZZA HUT DIVISION WHICH THE COMPANY SAYS IS THE LARGEST BUYER OF CANNED MUSHROOMS IN THE WORLD GETS ALL OF ITS MUSHROOMS FROM CHINA WHILE ACKNOWLEDGING A LACK OF FOCUS IN THE PAST PCI EXECUTIVES SAY THE ASIAN MARKET HAS REACHED A CRITICAL STAGE THAT REQUIRES RENEWED COMMITMENT THE FRONT LINES IN THE COLA WARS ARE NOT ATLANTA BUT BEIJING AND BUENOS AIRES SAYS KENNETH M ROSS PCI'S VICE PRESIDENT FOR PUBLIC RELATIONS WE'RE IN THIS GAME FOR KEEPS AND THAT'S NOT A STATEMENT PCI COULD HAVE MADE A FEW YEARS AGO 9306250028 930625 KONICA TO BUY NEW FORMAT MINIDISKS FROM TDK CORP TOKYO KONICA CORP PLANS TO PROCURE DIGITALAUDIO MINIDISKS ON AN ORIGINALEQUIPMENT MANUFACTURING BASIS FROM TDK CORP A SPOKESMAN SAID KONICA IS CONSIDERING BUYING TENS OF THOUSANDS OF THE NEW FORMAT DISKS A MONTH FROM TDK STARTING IN THE FALL AND MARKETING THEM UNDER ITS OWN BRAND BUT HE SAID OFFICIALS HAVE YET TO REACH A FINAL DECISION TDK EXPECTS TO BOOST ITS OWN PRODUCTION CAPACITY FOR MINIDISKS TO ABOUT 500000 A MONTH FROM 100000 A MONTH AT PRESENT AS DEMAND WARRANTS PERHAPS AS SOON AS THE FALL A COMPANY SPOKESMAN SAID HE SAID TDK IS INVESTING ROUGHLY TWO BILLION YEN 183 MILLION TO BEEF UP ITS MINIDISK PRODUCTION LINE THE KONICA SPOKESMAN SAID HIS COMPANY VIEWS PROCUREMENT OF THE DISKS FROM TDK AS MORE ECONOMICAL THAN MANUFACTURING THEM ITSELF HE NOTED THAT KONICA IS FOCUSING ON THE MINIDISKS AS THE NEXTGENERATION DIGITAL RECORDING FORMAT AND HAS NO CURRENT PLANS TO MARKET DIGITAL COMPACT CASSETTES ANALYSTS SEE THE SONY CORPBACKED MINIDISK COMPETING FOR SHARE OF THE DIGITAL RECORDING MARKET WITH DCC DEVELOPED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO A KONICATDK JOINT VENTURE CURRENTLY MAKES VIDEOTAPE AND FLOPPY DISKS 9306250027 930625 LEISURE & ARTS THE GALLERY OASES AT THE MET BY ROGER KIMBALL NEW YORK ANYONE SEEKING RESPITE FROM THE SWELTERING NEW YORK SUMMER COULD DO WORSE THAN POP INTO THE METROPOLITAN MUSEUM OF ART SOME OF THE MORE POPULAR GALLERIES ARE BUSY THOROUGHFARES ALAS BUT THERE ARE MANY RELATIVELY UNPATRONIZED NOOKS AND CRANNIES ONE PARTICULARLY REFRESHING EXHIBITION IS DRAWINGS FROM THE J PAUL GETTY MUSEUM A QUIETLY SUMPTUOUS COLLECTION OF MORE THAN 100 OLDMASTER AND 18TH AND 19THCENTURY DRAWINGS THAT OPENED IN LATE MAY AND IS UP UNTIL AUG 8 INCLUDING IMPRESSIVE SHEETS BY TITIAN THE YOUNGER HOLBEIN DEL SARTO PONTORMO VERONESE BERNINI RAPHAEL REMBRANDT AS WELL WATTEAU CHARDIN BOUCHER FRAGONARD DAVID VAN GOGH AND CEZANNE THE EXHIBITION PROVIDES THE FIRST PUBLIC OVERVIEW OF DRAWINGS FROM THE GETTY'S SMALL BUT EXCEPTIONALLY DISTINGUISHED COLLECTION THE FAMOUSLY WELLENDOWED MUSEUM IN MALIBU CALIF BEGAN COLLECTING DRAWINGS VERY RECENTLY IN 1981 ITS FIRST PURCHASE WHICH IS ON VIEW HERE WAS NUDE WOMAN WITH A SNAKE CIRCA 1637 A HANDSOME REDCHALK STUDY BY REMBRANDT SINCE THEN THE GETTY'S STUPENDOUS WEALTH HAS ENABLED IT TO INTERVENE SUCCESSFULLY AT ALMOST ANY SALE OR AUCTION OUTBIDDING OTHER INSTITUTIONS AND INDIVIDUALS TO ASSEMBLE A DAZZLING IF AS YET UNSYSTEMATIC COLLECTION OF SOME 400 DRAWINGS MANY OF ITS GREATEST PRIZES ARE ON VIEW HERE A LEONARDO TWO RAPHAELS THREE EACH BY REMBRANDT AND RUBENS THERE IS A GREAT VERONESE STUDY FOR THE MARTYRDOM OF SAINT GEORGE CIRCA 1566 A PSYCHOLOGICALLY PENETRATING PORTRAIT OF AN ENGLISH SCHOLAR OR CLERIC BY HANS HOLBEIN 1535 AND A FETCHING UNCHARACTERISTICALLY SPONTANEOUS PORTRAIT OF A YOUNG MAN BY BERNINI 16251630 RUBENS'S KOREAN MAN CIRCA 1617 A METICULOUSLY RENDERED THREEQUARTERSLENGTH CHALK PORTRAIT ADDS A NOTE OF MYSTERY SINCE CONTACT BETWEEN KOREA AND EUROPE WAS ALMOST NONEXISTENT AT THAT TIME WHERE WOULD RUBENS HAVE SEEN HIS SUBJECT THERE IS ALSO A HAUNTING BUST OF ST PAUL BY GIOVANNI SAVOLDO EARLY 1530S EYES DOWNCAST HALF SHUT A BROODING PAUL IS SWADDLED IN MISTLIKE SHADOWS WHILE A WRENCHING PERHAPS NOT WHOLLY WELCOME ILLUMINATION FROM ABOVE PULLS HIM FORWARD OUT OF HIMSELF AND TOWARD THE VIEWER THE DRAWINGS FROM THE GETTY ARE NOT THE ONLY OASIS AT THE MET THIS SUMMER ANOTHER SPECTACULAR OFFERING IS THE EXHIBITION OF VERROCCHIO'S LARGERTHANLIFESIZED BRONZE RELIEF STATUES OF CHRIST AND ST THOMAS FROM THE ORSANMICHELE CHURCH IN FLORENCE TODAY ANDREA DEL VERROCCHIO 14351488 IS NOT THE HOUSEHOLD NAME THAT HIS PUPILS LEONARDO DA VINCI AND BOTTICELLI ARE BUT IN ITS DAY VERROCCHIO'S WORKSHOP WAS REGARDED AS THE MOST IMPORTANT IN FLORENCE THESE TWO SCULPTURES ARE EXECUTED WITH EXCEPTIONAL REALISM AND PSYCHOLOGICAL DRAMA THEY VIVIDLY CAPTURE THE MOMENT WHEN THE RISEN CHRIST APPEARS TO A DUMBSTRUCK THOMAS WHOSE DOUBTS WAVER AND THEN COLLAPSE AS HE REACHES OUT TO TOUCH CHRIST'S WOUNDS COMMISSIONED IN 1466 THEY WERE NOT COMPLETED UNTIL 1483 WHEN THE STATUES WERE FINALLY UNVEILED THE DEPICTION OF CHRIST WAS DECLARED TO BE THE MOST BEAUTIFUL THING EVER MADE IN FLORENCE AND THE SCULPTURES ARE STILL CONSIDERED AMONG OF VERROCCHIO'S MASTERPIECES SINCE THEIR UNVEILING VERROCCHIO'S MASTERWORKS HAVE HUDDLED IN A NICHE ON THE FACADE OF THE ORSANMICHELE A GRANARY THAT WAS MADE OVER INTO A CHURCH IN THE 14TH CENTURY THIS IS THE FIRST TIME THEY HAVE BEEN SEEN OUTSIDE FLORENCE CENTURIES OF EXPOSURE TO WEATHER PIGEONS AND LATELY INDUSTRIAL POLLUTANTS GRAVELY BESMIRCHED THE SURFACES OF THE TWO FIGURES IN 1988 AS PART OF THE 500THANNIVERSARY CELEBRATIONS FOR VERROCCHIO'S GREAT PATRON LORENZO DE' MEDICI THE MAGNIFICENT A THOROUGH RESTORATION OF THE SCULPTURES WAS BEGUN ON VIEW EARLIER IN FLORENCE THE RESTORED SCULPTURES ARE UP IN THE ROBERT LEHMAN GALLERIES AT THE MET UNTIL OCT 17 THE EXHIBITION ALSO INCLUDES A DETAILED AND FASCINATING EXPLANATION COMPLETE WITH ILLUSTRATIVE MODELS OF THE LOSTWAX TECHNIQUE VERROCCHIO AND HIS ASSISTANTS USED TO CAST THE SCULPTURES TALK OF PATRONAGE BRINGS TO MIND THE LATEST FRONTPAGE NEWS ABOUT WALTER H ANNENBERG ONE OF THE MET'S MOST LAVISH DONORS ONLY A FEW WEEKS AGO IT WAS ANNOUNCED THAT MR ANNENBERG HAD PURCHASED WHEAT FIELD WITH CYPRESSES A STUNNING 1889 PAINTING BY VAN GOGH IN ORDER TO GIVE IT TO THE MUSEUM ESPECIALLY NOTEWORTHY IS THE FACT THAT UNLIKE THE EXPENSIVE COLLECTION OF IMPRESSIONIST AND POSTIMPRESSIONIST PAINTINGS THAT MR ANNENBERG HAS PROMISED TO THE MET THE VAN GOGH WAS PRESENTED TO THE MUSEUM WITHOUT RESTRICTIONS NOW HANGING WITH A DOZEN OTHER VAN GOGHS WHEAT FIELD WITH CYPRESSES WILL BE PLACED ON PERMANENT EXHIBITION IN THE MET'S NEW 19THCENTURY EUROPEAN PAINTING AND SCULPTURE GALLERIES WHEN THEY OPEN IN SEPTEMBER THE NEW VAN GOGH SEEMS TO BE A BIG HIT WITH VISITORS THE GALLERY WHERE IT HANGS WAS TEEMING WITH ART LOVERS THE AFTERNOON I WENT TO SEE IT AND MOST OF THE AMBIENT CHITCHAT WAS ABOUT THE PAINTING MANY WERE AWESTRUCKTHOUGH NOT ALWAYS PERHAPS BY THE AESTHETIC OR ARTISTIC QUALITIES OF THE PAINTING THESE INDEED ARE AWESOME WHEAT FIELD WITH CYPRESSES IS VAN GOGH AT HIS SOULSTIRRING BEST YET WHAT SEEMED TO FASCINATE PEOPLE MOST WAS ITS PRICE TAG I WAS STANDING IN FRONT OF THE PAINTING WHEN TWO LADIES STRODE UP AND DEMANDED OF A GUARD WHERE'S THE NEW VAN GOGH HE NODDED AT THE CANVAS IT COST 27 MILLION ONE WHISPERED TO THE OTHER BOTH GAPED SOLEMNLY FOR A MOMENT AND THEN TURNED TO LEAVE ACTUALLY MR ANNENBERG PAID 57 MILLION BUT WHO'S COUNTING 9306250026 930625 LOS ANGELES LAW AGAINST SMOKING SIGNED BY MAYOR BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES OUTGOING MAYOR TOM BRADLEY SIGNED INTO LAW A NEW ORDINANCE THAT WOULD PROHIBIT SMOKING IN THE CITY'S 7000 RESTAURANTS AND IS SET TO GO INTO EFFECT IN ABOUT A MONTH THE MEASURE WHICH NARROWLY RECEIVED CITY COUNCIL APPROVAL WEDNESDAY GOES FURTHER THAN THE PARTIAL RESTRICTIONS ON THE BOOKS IN MANY CITIES IN THIS CASE SMOKING IS BANNED IN 100 OF A RESTAURANT BARS OUTDOOR DINING AREAS AND PORTIONS OF NIGHTCLUBS ARE EXCLUDED THE LARGEST CITY IN THE US CURRENTLY TO HAVE SUCH A LAW IS OAKLAND CALIF ACCORDING TO GLENN BARR DEPUTY TO COUNCILMAN MARVIN BRAUDE WHO HAS BEEN FIGHTING FOR THESE PROHIBITIONS FOR 18 YEARS SUPPORTERS OF THE MEASURE HOPE FOR A DOMINO EFFECT IN NEARBY CITIES AND MUNICIPALITIES LIKE PASADENA LONG BEACH SANTA MONICA AND BEVERLY HILLS ARE EXPECTED TO ACT ON SIMILAR ORDINANCES SOON TWO BILLS THAT COULD SUPERSEDE THE LOS ANGELES PLAN ARE BEFORE THE CALIFORNIA STATE SENATE HAVING PASSED THE ASSEMBLY ONE BACKED BY THE TOBACCO LOBBY COULD WEAKEN THE LOS ANGELES ORDINANCE IN ITS CURRENT FORM UNLESS IT IS AMENDED TO GRANDFATHER IN THE LAW IT EXEMPTS BUSINESSES WITH FEWER THAN 15 EMPLOYEES AND RESTAURANTS WITH 50 OR FEWER SEATS THE OTHER FROM ANTISMOKERS SEEKING AN OVERALL WORKPLACE BAN EVEN IN BARS COULD TOUGHEN IT FURTHER ALTHOUGH SOME ANTISMOKERS FEAR EVEN THIS BILL BECAUSE THEY ARE AFRAID LEGISLATIVE COMPROMISES IN SACRAMENTO WILL SOMEHOW THREATEN THE LOS ANGELES LAW NO BILL IS EXPECTED TO EMERGE BEFORE AUGUST AND THERE IS NO GUARANTEE THAT EITHER WILL PASS OR RECEIVE THE GOVERNOR'S SIGNATURE THE CITY COUNCIL VOTING 8 TO 6 IGNORED THE PLEAS OF RESTAURATEURS WHO SAY THEY ALREADY ARE STRUGGLING IN AN ECONOMICALLY DEPRESSED REGION SINCE 1987 LOS ANGELES HAS HAD A LAW RESTRICTING SMOKING TO 50 OF A RESTAURANT IN THE MID1980S THE CITY OF BEVERLY HILLS IMPOSED A 100 RESTRICTION BUT THE LAW LATER WAS AMENDED TO A 60 RESTRICTION AFTER RESTAURANT OWNERS PROTESTED THEY WERE LOSING BUSINESS TO ESTABLISHMENTS ACROSS THE BORDER IN LOS ANGELES MAYORELECT RICHARD RIORDAN WHO TAKES OFFICE JULY 1 HAD INDICATED SUPPORT FOR THE MEASURE EVEN THOUGH HE HIMSELF OWNS A RESTAURANT 9306250025 930625 AMERICAN EXPLORATION CO HOUSTON AMERICAN EXPLORATION CO SAID IT WILL RECEIVE ABOUT 10 MILLION FROM THE SETTLEMENT OF CERTAIN LITIGATION AND WILL REPORT THE SUM AS OPERATING PROFIT FOR THE SECOND QUARTER A YEAREARLIER QUARTER THE OIL AND GAS COMPANY HAD A NET LOSS OF 52 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 139 MILLION THE SETTLEMENT RESULTS FROM A LAWSUIT BY AMERICAN EXPLORATION AND THREE OTHER COMPANIES FILED IN FEDERAL COURT IN NEW ORLEANS IN 1990 THE SUIT ALLEGED THAT LOUISIANA INTRASTATE GAS CORP A GAS GATHERING UNIT OF ARKLA INC SHREVEPORT LA VIOLATED A CONTRACT BY PAYING LESS THAN AGREED UPON FOR NATURAL GAS 9306250024 930625 OTC FOCUS NASDAQ INDEX RISES 393 AS STOCK PRICES RECEIVE SUPPORT FROM THE BOND MARKET BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK NASDAQ STOCKS GOT SUPPORT FROM BOND PRICES WHICH FIRMED ON DISAPPOINTING ECONOMIC NEWS THE BOOST ENDED THE OVERTHECOUNTER MARKET'S FOURDAY LOSING STREAK THE NASDAQ COMPOSITE INDEX BROKE OUT OF AN EARLY WEAK SPELL TO CLOSE 393 POINTS OR 057 HIGHER AT 68872 ADVANCING STOCKS OUTPACED DECLINERS 1423 TO 1218 TOTAL VOLUME WAS 227150 MILLION SHARES COMPARED WITH 259950 MILLION SHARES WEDNESDAY THE MARKET CONTINUES TO DEMONSTRATE AN UNWILLINGNESS TO MOVE DOWN SERIOUSLY WITH INTEREST RATES AS LOW AS THEY ARE SAID JERRY MARKOWITZ PARTNER IN CHARGE OF OTC TRADING AT MONTGOMERY SECURITIES THE CONSENSUS VIEW IS THAT THE ECONOMY IS GROWING ALBEIT SLOWLY WHICH IS KEEPING INTEREST RATES DOWN BONDS FORGED HIGHER ON NEWS THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE BY 8000 TO 353000 FOR THE WEEK ENDED JUNE 19 ACCORDING TO THE LABOR DEPARTMENT ECONOMISTS HAD EXPECTED CLAIMS TO DIP BY 1000 STOCKS SENSITIVE TO INTEREST RATES LEAPED HIGHER AND THE NASDAQ UTILITY INDEX SOARED 1421 POINTS REBOUNDING FROM THE 1081 POINTS IT LOST WEDNESDAY BANKING OTHER FINANCIAL AND INSURANCE ISSUES WERE MOSTLY HIGHER BSB BANCORP INCREASED 1 1/2 TO 32 1/2 BANK OF NEW HAMPSHIRE SURGED 1 TO 16 AND CORESTATES FINANCIAL IMPROVED 1 1/8 TO 54 1/8 TRADERS NOTED THAT CONCERN OVER SECONDQUARTER PROFIT REPORTS REMAINS A MAJOR FOCUS FOR INVESTORS PEOPLE ARE NERVOUS ABOUT VALUATIONS AND EARNINGS SAID MONTGOMERY'S MR MARKOWITZ ON THE OTHER HAND THEY HAVE NOWHERE ELSE TO PUT THEIR MONEY JACK MULDOWNEY HEAD OF EQUITY TRADING AT SCOTT & STRINGFELLOW FINANCIAL ALSO SENSES UNEASE SOME OF THE EARNINGS OUT ALREADY AND THE OUTLOOKS HAVE BEEN DISAPPOINTING WHICH SORT OF INDICATES THAT MAYBE THE PUBLIC DOESN'T BELIEVE THE ECONOMY HAS TURNED AROUND HE SAID THE TECHNOLOGY SECTOR MOSTLY SHOWED GAINS THOUGH APPLIED MATERIALS SLID 2 3/4 TO 50 3/4 ADOBE SYSTEMS ADVANCED 2 TO 65 1/4 AND BMC SOFTWARE CLIMBED 2 1/4 TO 47 1/2 SUN MICROSYSTEMS CLOSED 1 1/4 HIGHER AT 28 5/8 ON HEAVY VOLUME THE MANUFACTURER OF WORKSTATIONS SAID IT PLANS TO BEGIN A STOCK REPURCHASE PROGRAM UNDER WHICH AS MANY AS 10 MILLION SHARES OR ABOUT 95 OF ITS OUTSTANDING COMMON STOCK MAY BE ACQUIRED IN THE OPEN MARKET TOPPING THE MOSTACTIVES LIST INTEL DIPPED 1 1/4 TO 53 3/4 ON RENEWED FEARS THAT THE SANTA CLARA CALIF COMPANY IS IN DANGER OF LOSING ITS HOLD ON THE COMPUTER MICROPROCESSOR MARKET ANALYSTS SAY MOTOROLA'S NEW POWER PC CHIP COULD POSE A CHALLENGE TO INTEL'S MARKET DOMINANCE MOTOROLA ADDED 1 1/8 TO 83 5/8 ON THE NEW YORK STOCK EXCHANGE MARKET PLAYERS SAID NEGATIVE COMMENTS MADE BY A PAINEWEBBER ANALYST ABOUT INTEL ALSO PRESSURED THE COMPANY'S SHARES THE BROKERAGE FIRM REPORTEDLY DOWNGRADED ITS RATING ON INTEL AND CAUTIONED INVESTORS ON THE ENTIRE SEMICONDUCTOR GROUP WEAK OUTLOOKS TOPPLED SOME ISSUES DIGITAL MICROWAVE TUMBLED 3 1/2 TO 8 1/2 FOLLOWING ITS ANNOUNCEMENT LATE WEDNESDAY THAT IT MAY REPORT A FISCAL FIRSTQUARTER LOSS DEPENDING ON SHIPMENTS FOR THE REST OF THE QUARTER MERRILL LYNCH LOWERED ITS INVESTMENT RATING ON THE SAN JOSE CALIF CONCERN TO A SHORTTERM NEUTRAL FROM ABOVE AVERAGE SAYING THE COMPANY'S SALES WILL PROBABLY FALL BELOW THE BROKERAGE FIRM'S FORECAST FOR THE QUARTER ISOMEDIX MEANWHILE SKIDDED 5 1/8 TO 14 3/8 THE PROVIDER OF STERILIZATION SERVICES SAID IT EXPECTS EARNINGS AND REVENUE FOR THE YEAR TO FALL BELOW EXPECTATIONS F&M DISTRIBUTORS OF WARREN MICH PLUNGED 4 1/2 TO 9 AFTER THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY'S SECONDQUARTER NET INCOME WON'T EXCEED THE 14 MILLION OR 14 CENTS A SHARE IT EARNED IN THE FIRST QUARTER F&M OPERATES A DISCOUNT SUPERSTORE CHAIN CHECKPOINT SYSTEMS ROSE 1 1/2 TO 10 1/2 ON NEGATIVE REPORTS ABOUT COMPETITOR SENSORMATIC ELECTRONICS' ANTITHEFT DEVICES THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS WAS REPORTED TO HAVE FOUND THAT THE DEVICES HARM CASSETTE TAPES THOUGH THE ASSOCIATION SUBSEQUENTLY SAID THE REPORTS WERE EXAGGERATED ON THE BIG BOARD SENSORMATIC CLOSED WITH A LOSS OF 2 1/8 AT 38 5/8 FASTCOMM COMMUNICATIONS ROSE 1 1/2 TO 12 THE STERLING VA COMPANY AND U S WEST INC'S ADVANCED COMMUNICATIONS SERVICES BUSINESS UNIT SIGNED A TWOYEAR JOINT MARKETING AGREEMENT THAT ALLOWS U S WEST TO REPRESENT THE FASTCOMM LINE OF NETWORK ACCESS DEVICES U S WEST MOVED UP 1/4 TO 45 1/8 ON THE BIG BOARD ON THE IPO FRONT SARATOGA SPRING WATER CLOSED AT 7 3/4 ABOVE ITS INITIAL OFFERING PRICE WEDNESDAY OF 5 9306250023 930625 WHO'S NEWS SARA LEE CORP NAMES MURPHY AND BOONSTRA TO HIGH POSITIONS CHICAGO SARA LEE CORP NAMED MICHAEL E MURPHY TO THE NEW POST OF VICE CHAIRMAN AND AS EXPECTED ALSO NAMED CORNELIS BOONSTRA PRESIDENT AND CHIEF OPERATING OFFICER BOTH PROMOTIONS ARE EFFECTIVE JULY 1 MR MURPHY 56 YEARS OLD HAS BEEN EXECUTIVE VICE PRESIDENT SINCE HE JOINED THE COMPANY IN 1979 HE WILL CONTINUE TO SERVE AS CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER MR BOONSTRA 55 HAS BEEN EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR THE COMPANY'S EUROPEAN COFFEE AND GROCERY BUSINESSES WHICH HAD SALES OF 19 BILLION IN FISCAL YEAR 1992 AND FOR ITS HOUSEHOLD AND PERSONAL CARE BUSINESS WHICH HAD FISCAL 1992 SALES OF 12 BILLION MR BOONSTRA SUCCEEDS PAUL FULTON WHO RETIRES FROM THE FOODS AND PERSONAL PRODUCTS COMPANY TO BECOME DEAN OF THE KENANFLAGLER BUSINESS SCHOOL AT THE UNIVERSITY OF NORTH CAROLINA CHAPEL HILL MR FULTON WILL CONTINUE TO SERVE AS A BOARD MEMBER UNTIL OCTOBER MR BOONSTRA AND MR MURPHY WILL REPORT TO JOHN H BRYAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SARA LEE ALSO NAMED FRANS HJJ ANDRIESSEN A DIRECTOR OF THE COMPANY EFFECTIVE JULY 5 BRINGING THE BOARD'S SIZE TO 19 MR ANDRIESSEN 64 IS CURRENTLY A PROFESSOR AT THE UNIVERSITY OF UTRECHT IN THE NETHERLANDS AND HAS SERVED AS FIRST VICEPRESIDENT OF THE COMMISSION OF THE EUROPEAN COMMUNITIES AND AS MINISTER OF FINANCE FOR THE NETHERLANDS SEPARATELY SARA LEE SAID IT WILL REDEEM ALL SHARES OF ITS CONVERTIBLE ADJUSTABLE PREFERRED STOCK ON JULY 26 THE REDEMPTION PRICE WILL BE 50 PLUS DIVIDENDS OF 1986 ACCRUED THROUGH JULY 26 FOR A TOTAL PAYMENT OF 501986 A SHARE 9306250022 930625 MCKESSON GETS BIMART CONTRACT SAN FRANCISCO MCKESSON CORP SAID ITS MCKESSON DRUG CO UNIT RECEIVED A CONTRACT TO SUPPLY HEALTHCARE PRODUCTS AND SERVICES IN WASHINGTON AND OREGON TO BIMART INC A MEMBERSHIP DISCOUNT DRUGSTORE CHAIN TERMS OF THE AGREEMENT WEREN'T DISCLOSED MCKESSON A DISTRIBUTOR OF PHARMACEUTICALS AND HEALTHCARE PRODUCTS SAID ITS HEALTHCARE BUSINESS SEGMENT ACCOUNTS FOR 97 OF ITS ANNUAL REVENUE OF 12 BILLION 9306250021 930625 WHO'S NEWS US CAN CORP US CAN CORP OAK BROOK ILL EUGENE B CONNOLLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF USG CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF METAL CONTAINERS INCREASING BOARD MEMBERSHIP TO EIGHT 9306250020 930625 HEAD OF STATE OF ABU DHABI IS TARGET OF SUIT SHEIK OTHER BCCI FIGURES FACE ACTION BY BANK THAT SEEKS 15 BILLION BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIRST AMERICAN CORP AND ITS COURTAPPOINTED TRUSTEE FILED A HUGE CIVILRACKETEERING SUIT SEEKING 15 BILLION IN DAMAGES FROM SHEIK ZAYED BIN SULTAN ALNAHYAN OF ABU DHABI AND MANY OTHER BCCILINKED DEFENDANTS INCLUDING WASHINGTON ATTORNEYS CLARK CLIFFORD AND ROBERT ALTMAN THE CIVILRACKETEERING SUIT REPRESENTS A WATERSHED IN THE SCANDAL INVOLVING BANK OF CREDIT & COMMERCE INTERNATIONAL WHICH WAS CLOSED BY REGULATORS IN JULY 1991 AMID WIDESPREAD ALLEGATIONS OF FRAUD POLITICAL CORRUPTION AND MONEYLAUNDERING THE SUIT IS THE FIRST MAJOR LEGAL ATTEMPT WITH MORE THAN 200 PAGES OF DETAILED ALLEGATIONS AND BACKGROUND TO PLACE MUCH OF THE BLAME FOR THE BANKING DEBACLE ON SHEIK ZAYED THE ABSOLUTE RULER OF ABU DHABI AND HIS FAMILY THE MOVE IS AN EXTRAORDINARY STEP AGAINST A FOREIGN HEAD OF STATE THE SUIT FILED IN FEDERAL COURT HERE YESTERDAY BY FIRST AMERICAN'S LAWYERS ASSERTS THAT SINCE 1972 SHEIK ZAYED HAS BEEN THE DOMINANT AND CONTROLLING SHAREHOLDER OF BCCI IT FURTHER ALLEGES THAT HE PARTICIPATED PERSONALLY AND THROUGH HIS AGENTS IN THE CONDUCT OF THE AFFAIRS OF BCCI IT CITES EXAMPLES OF ZAYED'S INVOLVEMENT INCLUDING ALLEGATIONS OF AN AGREEMENT HE STRUCK WITH BCCI FOUNDER AGHA HASAN ABEDI AT THE BANK'S FOUNDING IN 1972 THE COMPLAINT ALLEGES THAT SHEIK ZAYED AND HIS BCCILINKED ALLIES SERIOUSLY DAMAGED THE HEALTH OF FIRST AMERICAN REDUCING ITS POTENTIAL SALE VALUE BY AN ESTIMATED 500 MILLION AND CAUSING A LOSS OF DEPOSITS OF 1 BILLION FIRST AMERICAN WHICH WAS SECRETLY ACQUIRED BY BCCI IN 1982 WAS A BIG BANK HOLDING COMPANY BASED IN WASHINGTON DC BY PINNING SO MUCH BLAME ON ABU DHABI THE SUIT MAY UPSET A PROJECTED WORLDWIDE AGREEMENT BETWEEN LIQUIDATORS FOR BCCI HOLDINGS LUXEMBOURG SA AND SHEIK ZAYED'S GOVERNMENT WHICH HAVE BEEN COOPERATING RECENTLY THE NEW SUIT ALSO IS LIKELY TO INCREASE THE PRESSURE ON THE JUSTICE DEPARTMENT TO TAKE SOME ACTION AGAINST ABU DHABI TO DATE THE EMIRATE HASN'T LIVED UP TO ITS PUBLIC PLEDGES TO OFFER US INVESTIGATORS ACCESS TO DOCUMENTS AND SENIOR BCCI OFFICIALS HELD IN ABU DHABI UNDER THE CURRENT PROPOSED AGREEMENT BETWEEN ABU DHABI AND THE LIQUIDATORS STRUCK IN 1992 THE SHEIKDOM WOULD PUT UP AS MUCH AS 17 BILLION TO HELP COMPENSATE BCCI'S TENS OF THOUSANDS OF DEPOSITORS ROUND THE WORLD IN RETURN FOR EFFECTIVE IMMUNITY FROM FURTHER LEGAL ACTION BY LIQUIDATORS AND CREDITORS IT IS ESTIMATED THAT THE BANK'S DEPOSITORS HAVE SUFFERED LOSSES EXCEEDING 10 BILLION WE ARE OUTRAGED THAT A BANK WE HELPED RESCUE FROM FINANCIAL CRISIS HAS TURNED ON US SAID CAFFEY NORMAN A WASHINGTON LAWYER WHO REPRESENTS SHEIK ZAYED AND HIS FAMILY AS WELL AS THE ABU DHABI INVESTMENT AUTHORITY AND THE SHEIK'S DEPARTMENT OF PERSONAL AFFAIRS THE CHARGES ARE COMPLETELY WITHOUT FOUNDATION AND WE WILL CONTEST THEM VIGOROUSLY MR NORMAN ADDED DENYING THAT HIS CLIENTS AND BCCI WERE ONE AND THE SAME MR NORMAN MADE THESE COMMENTS SHORTLY AFTER THE SUIT WAS FILED AND INDICATED HE HADN'T HAD TIME TO REVIEW ALL OF THE LENGTHY FILING SHEIK ZAYED AND HIS COURT HAVE PORTRAYED THEMSELVES AS VICTIMS OF THE BCCI SCANDAL CLAIMING THEY LOST MORE THAN 4 BILLION WHEN BCCI WAS SHUT DOWN THE SUIT HOLDS SHEIK ZAYED HIS FAMILY AND RETAINERS AS WELL AS SENIOR BCCI OFFICERS AND MESSRS CLIFFORD AND ALTMAN DIRECTLY RESPONSIBLE FOR A CONSPIRACY THAT BEGAN IN 1977 THIS CONSPIRACY THE SUIT ALLEGES INVOLVED REPEATED CONTINUOUS AND RELATED FRAUDULENT TRANSACTIONS AND MISREPRESENTATIONS IN ORDER TO ACQUIRE AND ILLEGALLY TO MAINTAIN INTERESTS IN FIRST AMERICAN MESSRS CLIFFORD AND ALTMAN WERE TOP OFFICIALS OF FIRST AMERICAN AND DID LEGAL WORK FOR BCCI MEANWHILE IN MR ALTMAN'S NEW YORK STATE TRIAL ON BRIBERY AND BANKFRAUD CHARGES FORMER SAUDI INTELLIGENCE CHIEF AND BCCI SHAREHOLDER KAMAL ADHAM ASSERTED THE IMPORTANCE OF SHEIK ZAYED AND HIS GROUP AS SHAREHOLDERS IN BOTH BCCI AND FIRST AMERICAN SHEIK KAMAL SAID BCCI'S FOUNDER AGHA HASAN ABEDI HAD TOLD HIM THAT SHEIK ZAYED HAD SAID DON'T WORRY I'LL HELP YOU IF YOU WANT TO START A NEW BANK PRIOR TO THE ESTABLISHMENT OF BCCI IN 1972 SHEIK KAMAL WHO SAID HE KNEW SHEIK ZAYED INDICATED THAT THE RULER AND HIS GROUP PLAYED A SIGNIFICANT ROLE IN THE AFFAIRS OF BCCI ON WEDNESDAY THE COURTAPPOINTED TRUSTEE FOR FIRST AMERICAN HARRY ALBRIGHT JR COMPLETED THE SALE OF FIRST AMERICAN METRO CORP TO FIRST UNION CORP OF CHARLOTTE NC FOR 453 MILLION FIRST AMERICAN METRO CONTAINS THE BULK OF FIRST AMERICAN'S ASSETS SHEIK ZAYED AND HIS GROUP CLAIM MORE THAN 300 MILLION OF THAT MONEY BECAUSE OF FUNDS THEY LENT TO AND INVESTED IN FIRST AMERICAN YESTERDAY'S CIVIL RACKETEERING SUIT EFFECTIVELY SETS OUT TO BLOCK ABU DHABI'S CLAIM TO THIS MONEY THE SUIT WAS BROUGHT IN THE NAME OF THE TRUSTEE AND OF FIRST AMERICAN CORP AND FIRST AMERICAN BANKSHARES INC TWO SENIOR HOLDING COMPANIES THAT WEREN'T INCLUDED IN THE SALE TO FIRST UNION 9306250019 930625 ECONOMY PERSONAL INCOME CLIMBED BY 04 FOR LAST MONTH CONSUMERS WERE CAUTIOUS REFLECTING CERTAINTY OVER CLINTON PROGRAMS BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INCOME OF AMERICANS INCREASED AT A FAIRLY HEALTHY CLIP IN MAY BUT THEY WERE HESITANT ABOUT PARTING WITH THE EXTRA MONEY DISPOSABLE PERSONAL INCOME INCREASED AN INFLATIONADJUSTED 04 LAST MONTH AFTER DROPPING 02 IN APRIL THE COMMERCE DEPARTMENT SAID BUT DESPITE THE JUMP IN INCOME AMERICANS SPENT ONLY 01 MORE ON GOODS AND SERVICES LAST MONTH DESPITE THE MODEST GROWTH OF THE ECONOMY ANALYSTS SAID CONSUMERS ARE STILL CAUTIOUS ABOUT SPENDING MORE OF THEIR INCOME BECAUSE OF UNCERTAINTY OVER PROSPECTIVE LEGISLATION IN CONGRESS THE POSTPONEMENT OF HEALTHCARE REFORM IS CAUSING EMPLOYERS TO HAVE A BARE MINIMUM OF HIRING PLANS SAID GARY CIMINERO CHIEF ECONOMIST FOR FLEET FINANCIAL GROUP IN PROVIDENCE RI PEOPLE ARE CONFUSED AND CONCERNED ABOUT FUTURE TAX LIABILITIES SAID PAUL KASRIEL AN ECONOMIST AT NORTHERN TRUST CO IN CHICAGO MR KASRIEL ALSO SAID THAT DESPITE SOME PICKUP IN THE JOB MARKET A NUMBER OF THESE NEW JOBS ARE PARTTIME OR TEMPORARY CAUSING PEOPLE TO SAVE MORE OF ANY NEW INCOME THE SAVINGS RATE GREW TO 48 OF PERSONAL INCOME IN MAY FROM 44 IN THE PRIOR MONTH IN LIGHT OF THESE FACTORS ANALYSTS REMAIN CAUTIOUS ABOUT THE ECONOMY'S GROWTH IN THE SECOND QUARTER MR CIMINERO EXPECTS THE CONSUMER CONFIDENCE LEVEL FOR JUNE TO REMAIN LOW WITH CONSUMPTION GROWING ONLY 25 IN ADDITION HE BELIEVES THAT OPTIMISTIC EXPECTATIONS FOR GROWTH IN CAPITAL SPENDING MIGHT BE EXCESSIVE ALL FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9306250018 930625 BUSINESS BRIEF HUNTWAY PARTNERS LP COMPANY AND LENDERS AGREE ON RESTRUCTURING OF DEBT HUNTWAY PARTNERS LIMITED PARTNERSHIP A PRODUCER OF LIQUID ASPHALT FOR ROAD CONSTRUCTION SAID IT REACHED AN AGREEMENT WITH ITS SECURED LENDERS TO RESTRUCTURE ITS 753 MILLION OF DEBT HUNTWAY OF VALENCIA CALIF SAID THE NEW 15YEAR PACT WILL ALLOW THE PARTNERSHIP TO REDUCE ANNUAL INTEREST EXPENSE BY ABOUT 3 MILLION THE AGREEMENT ALSO PROVIDES FOR A 175 MILLION LETTEROFCREDIT FACILITY HUNTWAY DEFAULTED ON ITS PREVIOUS CREDIT ACCORD MORE THAN A YEAR AGO AND HAD BEEN OPERATING SINCE DECEMBER UNDER A FORBEARANCE AGREEMENT WITH THE LENDERS WHICH INCLUDE BANKERS TRUST CO NEW YORK AND FOUR INSURANCE COMPANIES TERMS OF THE NEW AGREEMENT BAR HUNTWAY FROM MAKING ANY DISTRIBUTIONS TO ITS UNIT HOLDERS UNTIL THE LENDERS ARE PAID IN FULL HUNTWAY SUSPENDED DISTRIBUTIONS ON ITS UNITS THREE YEARS AGO 9306250017 930625 BUSINESS BRIEF UNITED TECHNOLOGIES CORP PRATT & WHITNEY WORKERS ACCEPT CONTRACT CONCESSIONS PRATT & WHITNEY THE JETENGINE UNIT OF UNITED TECHNOLOGIES CORP SAID MACHINIST UNION WORKERS NARROWLY APPROVED A PACKAGE OF CONTRACT CONCESSIONS AIMED AT SAVING 2300 JOBS THE CONTRACT WAS RATIFIED BY A VOTE OF 4210 TO 3496 UNION LEADERS SUPPORTED THE PACT SAYING NO BETTER ALTERNATIVE EXISTED WITHOUT THE CONCESSIONS THE HARTFORD CONN COMPANY SAID IT WOULD HAVE TO MOVE 2300 JOBS IN CONNECTICUT TO NONUNION PLANTS IN GEORGIA AND MAINE WHERE LABOR COSTS ARE 6 TO 8 AN HOUR LOWER THE AGREEMENT TIES WAGES TO PRODUCTIVITY WITH WAGES DROPPING AS MUCH AS 2 AN HOUR IF GOALS AREN'T MET PRATT & WHITNEY WHICH HAD A LOSS OF ABOUT 500 MILLION IN 1992 SAID IN APRIL THAT CONCESSIONS FROM THE STATE AND UNION WERE NEEDED TO LOWER THE COST OF DOING BUSINESS IN CONNECTICUT THE STATE LAST MONTH AGREED TO GIVE PRATT & WHITNEY AN INCENTIVE PACKAGE VALUED AT 32 MILLION 9306250016 930625 WHO'S NEWS JP MORGAN PICKS GAULT TO BE MANAGER IN MUNICIPAL FINANCE NEW YORK JP MORGAN & CO A COMMERCIAL BANK THAT HAS BEEN RAPIDLY EXPANDING ITS SECURITIES BUSINESS SAID INVESTMENT BANKER RONALD T GAULT WILL JOIN THE FIRM SOON AS A MANAGING DIRECTOR MR GAULT 52 YEARS OLD CURRENTLY IS MANAGING DIRECTOR IN THE PUBLIC FINANCE DEPARTMENT AT FIRST BOSTON CORP A UNIT OF CS FIRST BOSTON GROUP INC WHERE HE HAS BEEN EMPLOYED SINCE 1985 AT JP MORGAN MR GAULT WILL BE A SENIOR RELATIONSHIP MANAGER IN THE MUNICIPAL FINANCE DEPARTMENT OF THE BANK'S SECURITIES UNIT FIRST BOSTON HAS LOST A NUMBER OF INVESTMENT BANKERS AND TRADERS THIS YEAR MANY OF THE DEPARTURES HAVE OCCURRED AFTER DISPUTES OVER COMPENSATION HOWEVER ASSOCIATES SAY MR GAULT'S DEPARTURE WASN'T RELATED TO COMPENSATION BUT INSTEAD TO GREATER CAREER OPPORTUNITIES MR GAULT COULDN'T BE REACHED FOR COMMENT CS FIRST BOSTON IS A UNIT OF CS HOLDING WHICH ALSO OWNS THE GIANT SWISS BANK CREDIT SUISSE WE ARE DISAPPOINTED WE HAVE A GREAT DEAL OF RESPECT FOR RON SAID CARL EIFLER FIRST BOSTON'S HEAD OF PUBLIC FINANCE AMONG OTHER ACHIEVEMENTS MR GAULT IS CREDITED WITH WINNING A SENIOR MANAGEMENT SPOT FOR FIRST BOSTON IN THE CADRE OF FIRMS THAT UNDERWRITES BONDS FOR NEW YORK CITY ONE OF THE BIGGEST BORROWERS IN THE MUNICIPAL MARKET IT IS ONE OF FIRST BOSTON'S MOST LUCRATIVE MUNICIPAL ACCOUNTS NEW YORK CITY IS NEXT SCHEDULED TO SELL BETWEEN 700 MILLION AND 800 MILLION OF GENERAL OBLIGATION BONDS IN THE SECOND WEEK OF JULY A TRANSACTION THAT FIRST BOSTON WILL MANAGE MR EIFLER SAID MR GAULT WON'T LEAVE FIRST BOSTON UNTIL THAT TRANSACTION HAS BEEN COMPLETED 9306250015 930625 SHORT INTEREST IN OTC STOCKS CLIMBS TO HIGH TELECOMMUNICATIONS DELL AND INTEL SHARES SHOW HEFTY TOTALS FOR MONTH BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET SET A RECORD FOR THE FIFTH CONSECUTIVE MONTH CLIMBING TO 5377 MILLION SHARES IN MIDJUNE THIS MONTH'S FIGURE WAS 25 ABOVE MIDMAY'S LEVEL OF 5244 MILLION SHARES ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST INCREASED 27 TO 5069 MILLION SHARES FROM MAY'S 4936 MILLION THE MONTH SAW A SMALL DROP IN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS EASED TO 30861417 FROM 30862315 SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT THOSE SALES REPORTED AS OF JUNE 8 AND SETTLED AS OF JUNE 15 THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDJUNE SLID TO 239 FROM 248 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS FELL TO 069 FROM 081 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS CLASS A SHARES OF TELECOMMUNICATIONS INC ROSE 59 TO 97 MILLION SHARES DELL COMPUTER CORP EDGED UP 06 TO 76 MILLION AND INTEL CORP JUMPED 33 TO 42 MILLION SHORT INTEREST IN SPECTRUM INFORMATION TECHNOLOGIES SURGED TO 38 MILLION SHARES FROM 11 MILLION THE COMPANY HAS SAID IT AND CERTAIN OF ITS OFFICERS AND DIRECTORS HAVE BEEN NAMED IN CLASS ACTION LAWSUITS ALLEGING CLAIMS UNDER FEDERAL SECURITIES LAWS ITS SHARES FELL SHARPLY AT THE END OF MAY ON CONCERNS THAT THE ACTUAL VALUE OF A ROYALTY AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO IS MUCH LESS THAN SPECTRUM HAD INDICATED SPECTRUM DENIED ANY WRONGDOING YESTERDAY THE STOCK EDGED UP 1/32 TO 3 31/32 DOWN 70 FROM ITS YEAR'S HIGH OF 13 1/8 9306250014 930625 WHAT'S NEWS BUSINESS AND FINANCE A TAX BREAK FOR SMALL BUSINESSES THAT INCREASES EQUIPMENT WRITEOFFS WAS APPROVED BY THE SENATE AS DEMOCRATS PUSHED FOR APPROVAL OF THEIR DEFICITREDUCTION PACKAGE THE CHAMBER ALSO VOTED TO PARE PROPOSED MEDICARE CUTS AND TO EXEMPT COMMERCIAL JET FUEL FROM A PROPOSED TAX INCREASE ON TRANSPORTATION FUELS TRADE MINISTERS FROM THE US EUROPE CANADA AND JAPAN FAILED TO REACH AGREEMENT ON THE TARIFF AND MARKETACCESS ISSUES THAT DIVIDE THEM CASTING DOUBT ON THEIR ABILITY TO GIVE A LIFT TO THE WORLD TRADE TALKS SMITH BARNEY SHEARSON NAMED FORMER MORGAN STANLEY PRESIDENT ROBERT GREENHILL AS CHAIRMAN AND CHIEF EXECUTIVE SIGNALING A PLUNGE BY THE PRIMERICA UNIT INTO INVESTMENT BANKING DELTA'S FORTUNES HAVE SHARPLY REVERSED SINCE IT BOUGHT PAN AM'S EUROPEAN OPERATIONS IN 1991 SINCE THEN THE CARRIER'S DEBT HAS EXPLODED AND ITS ONCESTERLING CREDIT RATING HAS FALLEN TO THE JUNK LEVEL OF ITS RIVALS UNITED AIRLINES MAY SPIN OFF A NEW NONUNION AIRLINE TO FLY ITS UNPROFITABLE SHORTHAUL US ROUTES A PLAN THAT IS DRAWING FIRE FROM ITS PILOTS' UNION THE MOVE COULD AFFECT NEARLY A THIRD OF THE CARRIER'S NONSTOP FLIGHTS PERSONAL INCOME ROSE 04 IN MAY AFTER A 02 DROP IN APRIL HOWEVER AMERICANS SPENT ONLY 01 MORE ON GOODS AND SERVICES LAST MONTH ANALYSTS SAID CONSUMERS REMAIN CAUTIOUS BECAUSE OF UNCERTAINTY OVER PROSPECTIVE LEGISLATION IN CONGRESS UNIONS ARE HAVING A TOUGH TIME IN THIS YEAR'S NEGOTIATIONS THEIR CORE PROBLEM IS THAT GLOBAL COMPETITION IS HURTING THE SLUGGISH MANUFACTURING SECTOR WHERE MOST UNIONS OPERATE STOCK PRICES ROSE ON A BOND MARKET RALLY THE TREASURY'S 30YEAR BOND GAINED 3/8 POINT AND THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2380 POINTS TO 349061 THE DOLLAR WAS MIXED THE FCC ALLOCATED AN AIRWAVE SEGMENT TO PAGING SERVICES ELECTRONIC MAIL AND VOICE MAIL IN THE AGENCY'S FIRST VOTE ON A NEW GENERATION OF WIRELESS COMMUNICATIONS SERVICES THE FDIC SHARPLY LOWERED ITS FORECASTS FOR BANK FAILURES THIS YEAR AND NEXT SUGGESTING THAT BANKS WILL WIN A CUT IN THEIR DEPOSIT INSURANCE PREMIUMS MORE QUICKLY THAN EXPECTED SMITHKLINE BEECHAM YOUNG & RUBICAM AND FOOTE CONE & BELDING WERE SNARED IN ITALY'S WIDENING KICKBACK SCANDAL AS FORMER EXECUTIVES OF THEIR ITALIAN SUBSIDIARIES WERE ARRESTED ON CORRUPTIONRELATED ALLEGATIONS IBM CHAIRMAN GERSTNER NAMED COMPANY VETERAN M BERNARD PUCKETT TO BE SENIOR VICE PRESIDENT FOR CORPORATE STRATEGY AND DEVELOPMENT WHERE HE WILL REPORT DIRECTLY TO GERSTNER SHOWBIZ PIZZA TIME'S LARGEST HOLDER HALLWOOD GROUP SOLD 89 OF ITS HOLDINGS IN THE RESTAURANT CHAIN PRIOR TO THE COMPANY'S LOWERING OF ITS SECONDQUARTER EARNINGS FORECAST TOKYO STOCKS ROSE BROADLY BUT VOLUME REMAINED THIN THE NIKKEI INDEX GAINED 19255 POINTS OR ABOUT 1 TO 1968507 LONDON EQUITIES SLIPPED BONDS LEHMAN BROTHERS TREASURY INDEX 523556 UP 1470 COMMODITIES OIL 1889 A BARREL UP 3 CENTS DOW JONES FUTURES INDEX 12027 OFF 013 SPOT INDEX 12082 UP 038 DOLLAR 10873 YEN OFF 027 17073 MARKS UP 00153 9306250013 930625 INTERNATIONAL STATOIL AND NESTE OY MOVE TOWARD MELDING PLASTICS OPERATIONS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM STATOIL AS OF NORWAY AND FINLAND'S NESTE OY UNVEILED A PRELIMINARY PACT TO COMBINE THEIR PETROCHEMICALS AND PLASTICS OPERATIONS THE LASTEST SIGN OF THE CONSOLIDATION TREND SWEEPING EUROPE'S BATTERED CHEMICALS INDUSTRY THE PROPOSED TRANSACTION BETWEEN THE TWO STATEOWNED OIL CONCERNS WOULD CREATE ONE OF EUROPE'S BIGGEST PRODUCERS OF POLYOLEFINS ONE OF THE WORLD'S TOPSELLING TYPES OF PLASTIC THE VENTURE WOULD BEGIN OPERATION JAN 1 1994 WE DON'T HAVE A DEFINITE DEAL UNTIL THE JOINTVENTURE AGREEMENT IS SIGNED STATOIL EXECUTIVE VICE PRESIDENT TERJE VAREBERG SAID IN AN INTERVIEW BUT I DON'T SEE ANY BIG OBSTACLES IN THE PROCESS THE VENTURE WOULD HAVE ANNUAL SALES OF 25 BILLION COMPANY OFFICIALS SAID NESTE'S CURRENT PETROCHEMICAL OPERATIONS WITH ANNUAL SALES OF 16 BILLION ARE NEARLY TWICE THE SIZE OF STATOIL'S WHICH POSTED 1992 SALES OF 900 MILLION REFLECTING THE GREATER VALUE OF ASSETS IT WOULD CONTRIBUTE TO THE VENTURE NESTE WOULD RECEIVE WHAT OFFICIALS CALLED A VERY SUBSTANTIAL CASH PAYMENT NEITHER COMPANY WOULD REVEAL THE EXACT SIZE OF THE PAYMENT BUT IN THIS INDUSTRY THERE'S USUALLY A 1TO1 RELATION BETWEEN ASSETS AND SALES AND THAT'S A RATHER GOOD BALLPARK FIGURE IN THIS CASE SAID JUHA RANTANEN NESTE'S CHIEF FINANCIAL OFFICER SUCH A FORMULA WOULD INDICATE A PAYMENT OF ROUGHLY 700 MILLION THE CASH WOULD BE A WINDFALL FOR NESTE AFTER LAST YEAR'S RECORD PRETAX LOSS OF 22 BILLION MARKKAA 3885 MILLION YEAREARLIER PRETAX PROFIT WAS 478 MILLION MARKKAA 9306250012 930625 TRANSIT SECRETARY PENA PROMISES AUTO MAKERS SAFETY NOMINEE SOON DEARBORN MICH TRANSPORTATION SECRETARY FEDERICO PENA MET HERE WITH THE HEADS OF THE BIG THREE US AUTO MAKERS YESTERDAY TO STRESS PARTNERSHIP AND PROMISE THAT A NOMINEE TO HEAD THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WILL BE NAMED SOON WE'RE GOING TO MOVE AS QUICKLY AS WE CAN TO FIND A NEW ADMINISTRATOR HE SAID ADDING THAT HE HAS SUBMITTED SEVERAL NAMES TO THE WHITE HOUSE FOR THE POST THE SAFETY ADMINISTRATION DEVELOPS AND ENFORCES A BROAD RANGE OF AUTO SAFETY REGULATIONS AND IS OF VITAL IMPORTANCE TO THE INDUSTRY BUT IT HAS BEEN WITHOUT AN ADMINISTRATOR SINCE JANUARY LEAVING AUTO MAKERS IN A QUANDARY AS TO THE DIRECTION OF CLINTON ADMINISTRATION REGULATORY POLICY THE EMPTY POST IS OF GREAT CONCERN TO NO 1 AUTO MAKER GENERAL MOTORS CORP WHICH IS FIGHTING A PUSH BY SAFETY ADMINISTRATION STAFFERS TO RECALL 47 MILLION 19731987 PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS THE AGENCY ARGUES THE GM TRUCKS SHOULD BE RECALLED BECAUSE THEY HAVE A HIGHER RATE OF FATAL SIDEIMPACT FIRES THAN COMPETING TRUCKS GM SAYS NO RECALL IS NEEDED BECAUSE THE TRUCKS MEET OVERALL SAFETY STANDARDS MR PENA SAID HE HADN'T DISCUSSED THE PICKUP TRUCK FIRE ISSUE WITH GM EXECUTIVES DURING HIS VISIT IT'S MATTER THAT IS NOW UP FOR REVIEW AND IT WOULD BE INAPPROPRIATE FOR ME TO TALK ABOUT IT HE SAID IN A NEWS CONFERENCE FOLLOWING A PRIVATE LUNCH WITH THE CHIEF EXECUTIVES OF THE BIG THREE MR PENA REPEATEDLY STRESSED THE IMPORTANCE OF A PARTNERSHIP BETWEEN THE FEDERAL GOVERNMENT AND THE AUTO INDUSTRY GOVERNMENT COULD HELP THE INDUSTRY BECOME MORE COMPETITIVE BY COLLABORATING IN A VARIETY OF AREAS INCLUDING RESEARCH HE SAID 9306250011 930625 WHO'S NEWS KL GROUP BUYS STAKE IN FURR'S/BISHOP'S LEWIS ASSUMES POST LUBBOCK TEXAS FURR'S/BISHOP'S INC SAID A COMPANY CONTROLLED BY NEW YORK INVESTMENT BANKER KEVIN E LEWIS BOUGHT A STAKE OF ALMOST 10 IN THE CAFETERIA CHAIN AND INSTALLED THE 28YEAROLD MR LEWIS AS CHAIRMAN THE TRANSACTION ENDS THE CONTROVERSIAL REIGN OF MICHAEL J LEVENSON 43 WHO HAD SERVED AS CHAIRMAN SINCE LEADING A LEVERAGED BUYOUT OF THE CAFETERIA CHAIN FROM KMART CORP IN 1986 MR LEVENSON DIDN'T RETURN CALLS SEEKING A COMMENT JOE W CONNER CHIEF FINANCIAL OFFICER SAID KL GROUP INC CONTROLLED BY MR LEWIS AGREED TO BUY ABOUT 11 MILLION SHARES OF FURR'S/BISHOP'S CLASS B COMMON STOCK AT 96 CENTS A SHARE FROM MR LEVENSON AND HIS FAMILY KL GROUP ALSO RECEIVED OPTIONS TO ACQUIRE AS MANY AS THREE MILLION MORE SHARES AT 96 CENTS EACH WITHIN SIX MONTHS AND 44 MILLION SHARES WITHIN THREE YEARS AT BETWEEN 181 AND 246 A SHARE IF ALL OPTIONS ARE EXERCISED MR LEWIS'S COMPANY WOULD HOLD A 75 STAKE IN FURR'S/BISHOP'S THAT WOULD REPRESENT ESSENTIALLY ALL OF MR LEVENSON'S HOLDINGS THE COMPANY SAID MR LEVENSON'S TENURE AT THE COMPANY HAS BEEN MARKED BY CONSIDERABLE TURMOIL IN MARCH 1991 FURR'S/BISHOP'S PAID 460000 TO SETTLE A SHAREHOLDER SUIT ACCUSING THE COMPANY OF VIOLATING SECURITIES LAWS LAST DECEMBER MR LEVENSON WITHOUT ADMITTING OR DENYING THE ALLEGATIONS AGREED TO PAY 50000 TO SETTLE A COMPLAINT FILED BY THE SECURITIES AND EXCHANGE COMMISSION THAT ACCUSED THE COMPANY OF LYING ON ITS REGISTRATION STATEMENT WHEN IT CONVERTED TO A CORPORATION IN 1991 FURR'S/BISHOP'S SHARES CLOSED AT 150 UP 125 CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9306250010 930625 WHO'S NEWS LTV CORP LTV CORP CLEVELAND SAMUEL SKINNER PRESIDENT OF COMMONWEALTH EDISON CO CHICAGO AND FORMER SECRETARY OF TRANSPORTATION WAS ELECTED TO SERVE ON THE NEW 14MEMBER BOARD OF THIS REORGANIZED STEELMAKER 9306250008 930625 ENTERPRISE GOP ARGUES PLIGHT OF SMALL BUSINESSES IN TAX PLAN BUT POINT IS QUESTIONABLE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DURING A SENATE BUDGET COMMITTEE SESSION THIS WEEK ON THE DEFICITREDUCTION PACKAGE TEXAS REPUBLICAN SEN PHIL GRAMM OBJECTED THAT HIGHER TAX RATES WON'T FALL ON THE JOHN D ROCKEFELLERS OF THE NATION BUT PREDOMINANTLY ON JOE BROWN & SONS HARDWARE STORE HAVING BEEN BATTERED IN LAST YEAR'S PRESIDENTIAL CAMPAIGN AS DEFENDERS OF THE WEALTHY REPUBLICANS HARDLY WANT TO OPPOSE THE PRESIDENT'S PROPOSED INCOME TAX INCREASES HEAD ON AND BEMOAN THE BURDEN ON THE NATION'S RICHEST 12 OF THE POPULATION SO THEY'RE PLAYING UP THE PLIGHT OF SMALL BUSINESSES BUT CRITICS SAY THAT THE GOP IS OVERSTATING THE IMPACT WHAT MR GRAMM DIDN'T MENTION FOR EXAMPLE IS THAT MR BROWN AND HIS KIDS ARE PROBABLY MAKING OUT PRETTY WELL THEMSELVES THEY MAY NOT BE THE RICHEST OF THE RICH BUT IF THEY'RE GOING TO BE HIT BY THE HIGHER TAX RATES IN THE DEFICITREDUCTION PACKAGE CHANCES ARE THEY AREN'T STRUGGLING ENTREPRENEURS EITHER IF YOU WERE REALLY STRUGGLING YOU WOULDN'T BE IN THE BRACKET THAT'S AFFECTED BY THE PROPOSED CHANGE SAYS ALAN AUERBACH A UNIVERSITY OF PENNSYLVANIA ECONOMIST WHO HAS SERVED AS A TOP STAFF MEMBER OF THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION THE TAX BILL PENDING IN CONGRESS WOULD RAISE THE TOP TAX RATE TO 36 FROM 31 FOR INDIVIDUALS WITH TAXABLE INCOME OF MORE THAN 115000 AND FOR COUPLES WITH TAXABLE INCOME OF MORE THAN 140000 FOR THOSE WITH TAXABLE INCOME OF MORE THAN 250000 THE RATE WOULD INCREASE TO 396 MANY SMALL BUSINESSES INCLUDING THOSE ORGANIZED AS S CORPORATIONS PARTNERSHIPS OR SOLE PROPRIETORSHIPS PAY TAXES AS INDIVIDUALS REPUBLICAN LAWMAKERS HAVE THUS SPENT THE LAST COUPLE OF WEEKS DECRYING WHAT HIGHER INDIVIDUAL RATES WOULD MEAN FOR THESE CONCERNS AND IN TURN FOR JOB GROWTH AND THE US ECONOMY SEVERAL LEADING BUSINESS ORGANIZATIONS INCLUDING THE NATIONAL ASSOCIATION OF MANUFACTURERS HAVE ALSO TAKEN UP THE CAUSE THEY ARGUE AMONG OTHER THINGS THAT MUCH OF THE INCOME EARNED BY SMALLBUSINESS OWNERS TYPICALLY GETS PLOWED BACK INTO THE COMPANY HELPING TO GENERATE MORE JOBS THESE PEOPLE BELIEVE IN THE WORK ETHIC SAYS EILEEN O'CONNOR A SENIOR MANAGER AT THE ACCOUNTING FIRM GRANT THORNTON THEY AREN'T LIVING LAVISH LIFESTYLES IN THE SENATE THREE REPUBLICAN SENATORS LED BY WILLIAM ROTH OF DELAWARE INTRODUCED AN AMENDMENT THAT WOULD HAVE EXEMPTED S CORPORATIONS PARTNERSHIPS AND SOLE PROPRIETORSHIPS FROM THE HIGHER RATES IT FAILED IN A VOTE MOSTLY ALONG PARTY LINES STILL THE AMENDMENT SPOTLIGHTED THE STRATEGY THE GOP IS USING TO COMBAT PRESIDENT CLINTON WE NEED TO ENCOURAGE ENTREPRENEURS TO REBUILD THIS COUNTRY SAID TEXAS REPUBLICAN SEN KAY BAILEY HUTCHISON WHOSE RECENT ELECTION CAMPAIGN FEATURED A STRONG ANTITAX STANCE BUT MANY OF THE REPUBLICAN ARGUMENTS ARE SPECIOUS DESPITE GOP CLAIMS THAT MOST OF THE BURDEN OF THE HIGHER RATES WOULD FALL ON SMALL BUSINESS OWNERS JOINT TAX COMMITTEE DATA SHOW OTHERWISE INDIVIDUALS WHO DON'T FILE AS BUSINESS OWNERS OR PARTNERSHIP PARTICIPANTS WOULD ACCOUNT FOR MORE THAN 70 OF THE 1068 BILLION OF NEW REVENUE EXPECTED OVER FIVE YEARS FROM THE HIGHER RATES MOREOVER THE HIGHER INCOME TAX RATES WOULDN'T AFFECT THE VAST MAJORITY OF SMALL BUSINESSES THE TREASURY DEPARTMENT SAYS ABOUT 300000 OR 42 OF THE SEVEN MILLION TAXPAYERS WHO ARE ACTIVELY INVOLVED IN S CORPORATIONS PARTNERSHIPS OR SOLE PROPRIETORSHIPS WOULD BE SUBJECT TO THE HIGHER TAX RATES AND MANY OF THOSE ARE UPPERINCOME INVESTMENT BANKERS DOCTORS AND LAWYERS HARDLY THE IMAGE OF SMALL BUSINESS OWNERS EVOKED BY SOME OF THE REPUBLICANS THESE ARE EXTREMELY WELLTODO PEOPLE ASSERTS SAM SESSIONS THE TREASURY'S DEPUTY ASSISTANT SECRETARY FOR TAX POLICY A DEPARTMENT ANALYSIS SHOWS THAT THE 300000 ACTIVE BUSINESS OWNERS WHO WOULD BE AFFECTED BY THE HIGHER INDIVIDUAL RATES HAVE INCOME BEFORE ITEMIZED DEDUCTIONS AVERAGING 560000 9306250007 930625 FORMER THRIFT OWNER GAUBERT IS CONVICTED OF BANK FRAUD IN TEXAS SHERMAN TEXAS FORMER TEXAS THRIFT OWNER THOMAS MERRILL GAUBERT WAS CONVICTED ON FEDERAL BANK FRAUD AND MONEYLAUNDERING CHARGES IN FEDERAL COURT HERE MR GAUBERT 53 YEARS OLD WAS CONVICTED ON 10 COUNTS RELATING TO CHARGES THAT HE FRAUDULENTLY DIVERTED 333658 IN ASSETS FROM THE SUNCHASE VILLAGE OF IRVING PARTNERSHIP THREE DAYS BEFORE HE PLACED IT IN BANKRUPTCYLAW PROCEEDINGS MR GAUBERT WAS PRESIDENT OF SUNCHASE'S GENERAL PARTNER SUNCHASE WAS A LIMITED PARTNERSHIP WHICH OWNED AN IRVING TEXAS APARTMENT COMPLEX MR GAUBERT SAID HE FACES A SENTENCE OF AS MANY AS 85 YEARS IN FEDERAL PRISON PROSECUTORS HAVE PURSUED MR GAUBERT ON A NUMBER OF FRONTS SINCE THE 1987 FAILURE OF INDEPENDENT AMERICAN SAVINGS ASSOCIATION A DALLAS THRIFT WHICH HE OWNED IN 1988 HE WAS ACQUITTED ON CHARGES OF DEFRAUDING A THRIFT IN IOWA HE IS AWAITING TRIAL IN DALLAS LATER THIS YEAR ON TWO SEPARATE INDICTMENTS ALLEGING BANK FRAUD THIS IS THE PRODUCT OF A LOT OF WORK OVER THE YEARS ASSISTANT US ATTORNEY VICTOR CONRAD SAID THE JURY REACHED ITS VERDICT AFTER DELIBERATING FOR ABOUT TWO AND A HALF HOURS MR CONRAD SAID MR GAUBERT WHO REPRESENTED HIMSELF BUT DIDN'T TESTIFY AT THE TRIAL SAID HE PLANS TO APPEAL THE VERDICT BECAUSE HE DOESN'T BELIEVE HE RECEIVED A FAIR TRIAL I HAD AN HONEST JURY HE SAID I JUST DIDN'T HAVE THE TALENTS TO TAKE THE WORDS THAT THREE GOVERNMENT ATTORNEYS TWISTED AND TURN THEM AROUND AND EXPLAIN THEM TO THE JURY THE ONETIME DEMOCRATIC FUNDRAISER ALSO COMPLAINED AS HE HAS PREVIOUSLY THAT FEDERAL PROSECUTORS HAD A VENDETTA AGAINST HIM HE REMAINS FREE ON BAIL UNTIL SENTENCING WHICH IS SCHEDULED FOR SEPT 9306250005 930625 WHAT'S NEWS WORLDWIDE EIGHT SUSPECTS WERE ARRESTED IN AN ALLEGED MIDEAST TERRORIST RING THE MEMBERS OF AN ALLEGED TERRORIST GROUP WERE ARRESTED IN A PLOT TO BOMB FACILITIES IN NEW YORK INCLUDING THE UN AND THE HOLLAND AND LINCOLN TUNNELS THE ALLEGED RINGLEADER OF THE GROUP WAS ALSO INVOLVED IN PLANNING LAST FEBRUARY'S BOMBING OF THE WORLD TRADE CENTER OFFICIALS SAID THE GROUP PLANNED TO DETONATE THE BOMBS IN SEPTEMBER TO COINCIDE WITH THE START OF THE TRIAL OF THE SIX DEFENDANTS IN THE TRADE CENTER BOMBING CASE THE GROUP ALSO INTENDED TO ASSASSINATE TWO NEW YORK POLITICIANS INCLUDING SEN D'AMATO THE FBI SAID OTHER TARGETS WERE REPORTED TO BE UN CHIEF BOUTROSGHALI AND EGYPT'S MUBARAK THE HOUSE VOTED OVERWHELMINGLY TO KILL THE SUPERCOLLIDER PROJECT IN TEXAS THE LAWMAKERS LED BY DEFICITCONSCIOUS FRESHMEN VOTED 280150 TO TERMINATE THE SUPERCONDUCTING SUPERCOLLIDER ALONG WITH OTHER COSTLY ENERGY DEPARTMENT RESEARCH PROJECTS THOUGH THE SUPERCOLLIDER HAD SUFFERED PRIOR SETBACKS IN THE HOUSE THE VOTE AGAINST IT YESTERDAY WAS FAR MORE DECISIVE THAN ANY BEFORE AND WILL MAKE IT HARDER FOR ALLIES IN THE SENATE TO REVIVE THE ATOM SMASHER BESIDES THE SUPERCOLLIDER LEGISLATORS ALSO KILLED FUNDING FOR THE SPACE REACTOR AND ADVANCED LIQUID METAL REACTOR PROGRAMS THE GOVERNMENT HAS INVESTED BILLIONS OF DOLLARS IN THE THREE PROJECTS KURDISH SEPARATISTS ATTACKED TURKISH TARGETS ACROSS EUROPE THE KURDISH MILITANTS DEMANDING AN END TO TURKISH MILITARY CAMPAIGNS AGAINST THEIR PEOPLE ATTACKED TURKISH CONSULATES AND BUSINESS OFFICES IN MORE THAN A DOZEN EUROPEAN CITIES MORE THAN 30 PEOPLE WERE TAKEN CAPTIVE THEN RELEASED IN TURKISH DIPLOMATIC MISSIONS IN MARSEILLE FRANCE AND MUNICH GERMANY THE HOSTAGE SIEGE IN MUNICH LASTED 14 HOURS ONE MILITANT DIED IN A GUNBATTLE IN SWITZERLAND IN ALL AT LEAST 56 PEOPLE WERE ARRESTED IN CONNECTION WITH THE ONEDAY SERIES OF ATTACKS WHICH ALSO OCCURRED IN SWEDEN DENMARK AND ENGLAND TWO CANCERRESEARCH TEAMS REPORTED THE CREATION OF COMPOUNDS TO BLOCK THE MASTER SWITCH THAT TURNS ON THE GROWTH OF TUMORS OF THE PANCREAS COLON AND LUNGS THE BREAKTHROUGH WAS DESCRIBED BY TEAMS FROM GENENTECH AND MERCK A MAIL BOMB CRITICALLY INJURED A YALE UNIVERSITY COMPUTER SCIENTIST AND THE FBI WAS INVESTIGATING A POSSIBLE LINK TO OTHER EXPLOSIONS THAT HAVE TARGETED ACADEMICS INCLUDING ONE THAT INJURED A CALIFORNIA GENETICIST ON TUESDAY THE JOINT CHIEFS ARE EXPECTED TO MEET TODAY TO ENDORSE THE DON'T ASK DON'T TELL COMPROMISE TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY UNDER THE COMPROMISE THE MILITARY WOULD PERMANENTLY END ITS PRACTICE OF ASKING ENLISTEES ABOUT THEIR SEXUAL ORIENTATION BUT HOMOSEXUALS WOULDN'T BE PERMITTED TO DECLARE THEIR ORIENTATION THE BASE CLOSING COMMISSION VOTED TO GIVE NEW JERSEY'S MCGUIRE AIR FORCE BASE A NEW ROLE AS THE PRIME EAST COAST BASE FOR DISPATCHING TROOPS AND EQUIPMENT TO WARS THE PANEL VOTED TO SAVE HOMESTEAD AIR FORCE BASE IN FLORIDA RECOMMENDED FOR CLOSING WERE TWO BASES PLATTSBURGH IN NEW YORK AND KI SAWYER IN MICHIGAN BOSNIA'S SERBS AND CROATS AGREED THAT THE FORMER YUGOSLAV REPUBLIC SHOULD BECOME A CONFEDERATION OF THREE ETHNIC MINISTATES AND CALLED ON THE MUSLIMS TO JOIN DIRECT PEACE NEGOTIATIONS ANNOUNCEMENT OF THE ACCORD IN GENEVA PUT FURTHER PRESSURE ON BOSNIAN PRESIDENT IZETBEGOVIC A MUSLIM TO STOP BOYCOTTING THE TALKS THE RUSSIAN PRIME MINISTER DELAYED A TRIP TO WASHINGTON AFTER THE US STEPPED UP PRESSURE ON THE RUSSIANS TO STOP SELLING ROCKET TECHNOLOGY TO INDIA CHERNOMYRDIN WAS TO HAVE ARRIVED TOMORROW TO DISCUSS ENERGY AND SPACE COOPERATION PROJECTS HAITI'S PRESIDENT WILL MEET SUNDAY WITH THE MILITARY LEADERS WHO OUSTED HIM THE SESSION IS TO TAKE PLACE AT UN HEADQUARTERS IN NEW YORK ARISTIDE PREVIOUSLY HAD GIVEN MIXED SIGNALS ON WHETHER HE WOULD ATTEND AZERBAIJAN'S LAWMAKERS STRIPPED PRESIDENT ELCIBEY OF HIS POWERS A WEEK AFTER HE FLED THE CAPITAL AMID CLASHES BETWEEN REBELS AND GOVERNMENT TROOPS THE DEPUTIES HANDED ALL PRESIDENTIAL AUTHORITY TO EXCOMMUNIST CHIEF ALIEV WHO RETURNED TO POWER AS PARLIAMENT SPEAKER ONE WEEK AGO 9306250003 930625 POLITICS & POLICY AS YALE SCIENTIST IS INJURED IN BOMBING UNIVERSITIES AND COMPANIES GO ON ALERT BY STEVE STECKLOW AND MARILYN CHASE STAFF REPORTERS OF THE WALL STREET JOURNAL SEVERAL UNIVERSITIES RESEARCH FACILITIES AND COMPANIES WENT ON ALERT FOLLOWING THE SECOND MAIL BOMBING THIS WEEK TARGETING AN ACADEMIC SCIENTIST IN THE LATEST ATTACK A COMPUTER EXPERT AT YALE UNIVERSITY WAS SERIOUSLY INJURED YESTERDAY AFTER A PACKAGE EXPLODED THAT HE WAS OPENING AT HIS NEW HAVEN CONN OFFICE AT ABOUT 815 AM DAVID GELERNTER A 38YEAROLD ASSOCIATE PROFESSOR OF COMPUTER SCIENCE WAS LISTED IN CRITICAL CONDITION AT THE CAMPUS HOSPITAL WITH WOUNDS OF THE ABDOMEN CHEST FACE AND HANDS THE FEDERAL BUREAU OF INVESTIGATION AND OTHER LAW ENFORCEMENT AGENCIES WERE ATTEMPTING TO DETERMINE IF THERE WAS ANY LINK BETWEEN THE INCIDENT AND A SIMILAR MAIL BOMBING TUESDAY AT THE HOME OF UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO GENETICIST CHARLES EPSTEIN 59 WHO'S WIDELY KNOWN FOR HIS RESEARCH INTO DOWN'S SYNDROME AND OTHER GENETIC DEFECTS DR GELERNTER'S BROTHER ALSO IS INVOLVED IN GENETICS RESEARCH FBI DIRECTOR WILLIAM SESSIONS AT A LATE AFTERNOON PRESS CONFERENCE IN SAN FRANCISCO SAID FEDERAL AGENTS ARE COMBING CRIME SCENES NEAR EAST AND WEST COAST UNIVERSITIES IN AN EFFORT TO LINK THE TWO MAIL BOMBINGS I DON'T THINK IT'S ILLOGICAL FOR PEOPLE TO SUGGEST A LINK BETWEEN THEM MR SESSIONS SAID THE FBI DIRECTOR HINTED THAT THE AGENCY ALSO IS PROBING THE CASES FOR POSSIBLE LINKS WITH THE UNSOLVED SERIES OF A DOZEN BOMBINGS BETWEEN 1978 AND 1987 11 OF WHICH WERE AIMED AT ACADEMICS THE EARLIER STRING OF INCIDENTS DUBBED UNIBOMB BY THE FBI ARE BELIEVED TO BE THE WORK OF A LONE INDIVIDUAL IN ALL 21 PERSONS WERE INJURED ONE FATALLY BY THE EXPLOSIVES THOSE BOMBS WERE EITHER SENT IN PACKAGES OR PLANTED IN BUILDINGS OR PARKING LOTS AT UNIVERSITIES AND COMPUTER COMPANIES IN SIX STATES THE NEW YORK TIMES REPORTED THAT IT HAD RECEIVED A LETTER POSTMARKED JUNE 21 FROM SACRAMENTO CALIF THAT WARNED OF A NEWSWORTHY EVENT AND IDENTIFIED ITS AUTHOR AS FC AUTHORITIES SAID THAT THE BOMBER PREVIOUSLY HAD IDENTIFIED HIMSELF AS FC THE NEWSPAPER REPORTED MR SESSIONS SAID THAT FOLLOWING YESTERDAY'S BOMBING THE AGENCY HAD ALERTED EIGHT REGIONAL UNIVERSITY SYSTEMS TO THE DANGER URGING PERSONS ASSOCIATED WITH UNIVERSITIES TO TAKE SPECIAL PRECAUTIONS HARVARD AND STANFORD UNIVERSITIES AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WARNED THEIR FACULTIES YESTERDAY TO TAKE PRECAUTIONS ON OPENING MAIL HARVARD CAUTIONED ITS FACULTY AGAINST OPENING ANY PADDED MANILA ENVELOPES OR PACKAGES THAT APPEAR TO CONTAIN SUCH ITEMS AS PLASTIC BOXES COPPER TUBING OR BATTERIES ACADEMIC INSTITUTIONS INCLUDING HARVARD WERE NOTIFIED THAT IN BOTH THE SAN FRANCISCO AND NEW HAVEN INCIDENTS THE EXPLOSIVES WERE SENT IN MANILA ENVELOPES ONE OF WHICH CONTAINED THOSE ITEMS FBI DIRECTOR SESSIONS SAID HE WAS AWARE OF BUT COULDN'T CONFIRM REPORTS THAT BOTH BOMBS CARRIED SACRAMENTO CALIF RETURN ADDRESSES CORPORATE RESPONSE MEANWHILE AT GENENTECH INC IN SOUTH SAN FRANCISCO A BIOTECHNOLOGY COMPANY WHERE ACCESS TO ALL BUILDINGS IS CONTROLLED BY PLASTIC KEYCARDS EMPLOYEES WORKED IN AN ATMOSPHERE OF HEIGHTENED ALERT WE HAVE STEPPED UP OUR LEVEL OF SECURITY AWARENESS AND WE ARE SCREENING ALL INCOMING MAIL AND PACKAGES WE'RE ON A HEIGHTENED ALERT SAID SPOKESMAN JAMES WEISS HE ADDED THAT TOP EXECUTIVES WERE BRIEFED ON SAFETY AND SECURITY PROCEDURES PLACES LIKE GENENTECH CAN KEEP PEOPLE OUT SAID ONE WEST COAST SCIENTIST BUT OUR PUBLIC INSTITUTIONS ARE REALLY VULNERABLE ENVISIONING AN ERA OF METAL DETECTORS AND BOMBSNIFFING DOGS HE ADDED IT'S GONNA BE LIKE AIRPORTS IN THE FUTURE OTHER WEST COAST UNIVERSITY AND CORPORATE SCIENTISTS INVOLVED IN THE FIELD OF GENETICS SAID THEY HAVE BEEN BRACING THEMSELVES FOR PROTESTS SINCE THE DEBUT OF THE MOVIE JURASSIC PARK WHICH SPINS APOCALYPTIC SCENARIOS OUT OF THE SCIENCE OF GENESPLICING IN THE SAN FRANCISCO CASE THE PACKAGE BOMB CARRIED A RETURN ADDRESS FROM JAMES HILL CHAIRMAN OF THE CHEMISTRY DEPARTMENT AT CALIFORNIA STATE UNIVERSITY IN SACRAMENTO HE'S NOT CONSIDERED A SUSPECT AT THIS TIME SAID FBI SPECIAL AGENT JOSEPH T SHEEHAN IN A TELEPHONE INTERVIEW DR HILL AN INORGANIC CHEMIST SAID HE WAS VISITED BY AN FBI AGENT AND A POSTAL INSPECTOR LATE TUESDAY WHO TOLD HIM THAT IN OTHER MAIL BOMBINGS INVOLVING ACADEMICS UNIVERSITY PROFESSORS HAD BEEN USED IN THE RETURN ADDRESS TO GIVE IT CREDIBILITY DR HILL SAID THE AGENTS WERE SUSPICIOUS THAT THE BOMBER MIGHT BE AN OLDER PERSON WHO MAY HAVE BEEN GOING TO SCHOOL OFF AND ON IN DIFFERENT PLACES SPECIAL AGENT JOHN SENNETT OF THE FBI'S NEW HAVEN OFFICE SAID THE TWO BOMBINGS THIS WEEK MAY BE A RESUMPTION BY THE SERIAL BOMBER WE'RE LOOKING CLOSELY FOR ANY KIND OF MOTIVE INCLUDING THOSE THAT ARE TERRORIST IN NATURE MR SENNETT TOLD THE ASSOCIATED PRESS BOTH DR EPSTEIN AND DR GELERNTER ARE WELL KNOWN IN THEIR FIELDS DR EPSTEIN A PROFESSOR OF PEDIATRICS EDITS THE AMERICAN JOURNAL OF HUMAN GENETICS DR GELERNTER WHO DIRECTS UNDERGRADUATE STUDIES IN COMPUTER SCIENCE IS AN OUTSPOKEN CRITIC OF THE PRESENT USE OF COMPUTERS IN EDUCATION AND HAS PUBLISHED NUMEROUS ARTICLES IN NATIONAL PUBLICATIONS INCLUDING THE NEW YORK TIMES HE'S AN EXPERT IN THE LINKING OF POWERFUL COMPUTERS KNOWN AS PARALLEL PROCESSING AS A GRADUATE STUDENT HE WROTE A LANDMARK COMPUTER LANGUAGE KNOWN AS LINDA THAT ENABLED MULTIPLE COMPUTERS TO WORK ON A SINGLE PROBLEM AUTHORITIES NOTED THAT DR GELERNTER'S BROTHER JOEL IS A YALE PSYCHIATRIST WHO SPECIALIZES IN GENETICS RESEARCH FOLLOWING YESTERDAY'S BOMBING THE SWITCHBOARD AT THE MEDICAL CENTER WHERE JOEL GELERNTER WORKS RECEIVED A PHONE CALL FROM A PERSON WHO SAID YOU ARE NEXT ACCORDING TO A SPOKESWOMAN FOR THE FACILITY POLICE THEN SEARCHED THE MAILROOM BUT FOUND NOTHING SHE SAID 9306250001 930625 DEMOCRATS DEAL TO GAIN VOTES FOR DEFICIT BILL SMALLBUSINESS TAX BREAK GROWS MEDICARE CUTS SHRINK TO WIN BACKING BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS PUSHED FOR SENATE APPROVAL OF THEIR VERSION OF PRESIDENT CLINTON'S ECONOMIC PROGRAM AFTER AGREEING TO SWEETEN A TAX BREAK FOR SMALL BUSINESSES AND PARE PROPOSED MEDICARE CUTS IN ORDER TO SEAL SUPPORT FROM RECALCITRANT PARTY MEMBERS THE SENATE WORKING LATE INTO LAST NIGHT ON ITS PACKAGE OF TAX INCREASES SPENDING CUTS AND ASSORTED BUSINESSTAX INCENTIVES ALSO VOTED LAST NIGHT TO EXEMPT COMMERCIAL JET FUEL FROM A PROPOSED TAX INCREASE ON TRANSPORTATION FUELS TOGETHER YESTERDAY'S CONCESSIONS FOR SMALL BUSINESS MEDICARE AND THE COMMERCIAL AVIATION INDUSTRY LOPPED 16 BILLION FROM THE DEMOCRATS' FIVEYEAR DEFICITREDUCTION GOAL EARLIER IN THE DAY THE SENATE VOTED 935 TO INCREASE TO 20500 FROM 10000 THE AMOUNT THAT SMALL BUSINESSES AND FARMERS CAN WRITE OFF FOR THEIR EQUIPMENT PURCHASES DURING THE YEAR IT WAS A RARE BIPARTISAN VOTE AMID THE HIGHLY PARTISAN DEBATE ON THE SENATE DEMOCRATS' DEFICITREDUCTION MEASURE AND BY VOICE VOTE THE SENATE AGREED TO REDUCE THE BILL'S CUTS IN PROJECTED MEDICARE REIMBURSEMENTS FOR HOSPITALS DOCTORS AND OTHER PROVIDERS TO A TOTAL OF 58 BILLION OVER FIVE YEARS FROM THE 67 BILLION THAT THE FINANCE COMMITTEE APPROVED LAST WEEK A GROUP OF LIBERAL DEMOCRATS HELD OUT FOR DAYS TO GET THE LOWER FIGURE THOUGH IT'S STILL MORE THAN THE 48 BILLION REDUCTION MR CLINTON PROPOSED ON MOSTLY PARTYLINE VOTES THE DEMOCRATS DEFEATED REPUBLICAN ATTEMPTS TO STRIP TWO OF THE MAJOR REVENUE RAISERS FROM THE PACKAGE THE 43CENTAGALLON INCREASE IN TRANSPORTATION FUELS TAXES WHICH WOULD RAISE 242 BILLION OVER FIVE YEARS AND AN INCREASE IN THE TAXABLE PORTION OF SOCIAL SECURITY BENEFITS FOR SOME UPPERINCOME RECIPIENTS WHICH WOULD RAISE 263 BILLION THE EXEMPTION FOR COMMERICAL JET FUEL WAS LATER APPROVED BY VOICE VOTE THE VOTE TO RETAIN THE OVERALL FUELSTAX INCREASE WAS 5048 FIVE DEMOCRATS SENS DENNIS DECONCINI OF ARIZONA HERBERT KOHL OF WISCONSIN JOSEPH LIEBERMAN OF CONNECTICUT FRANK LAUTENBERG OF NEW JERSEY AND RICHARD SHELBY OF ALABAMA JOINED ALL THE REPUBLICANS IN VOTING AGAINST IT SEN SHELBY WHO HAS CONSISTENTLY BEEN A RENEGADE IN THE PARTY OPPOSES THE ENTIRE BILL SEN LAUTENBERG WHO MAY FACE A TOUGH REELECTION FIGHT IN A STATE WHERE ANTITAX SENTIMENT RUNS HIGH ANNOUNCED AFTER THE FUELSTAX VOTE THAT HE ALSO OPPOSES THE ENTIRE PACKAGE THE AMENDMENT AGAINST THE SOCIAL SECURITY TAX WAS KILLED ON A 5146 VOTE SEN JOHN DANFORTH OF MISSOURI WHO'S RETIRING FROM CONGRESS IN 1995 AND HAS MADE DEFICIT REDUCTION A PRIORITY WAS THE ONLY REPUBLICAN TO JOIN DEMOCRATS IN KILLING THE PROPOSAL FIVE DEMOCRATS SENS DECONCINI SHELBY HOWELL HEFLIN OF ALABAMA JEFF BINGAMAN OF NEW MEXICO AND RICHARD BRYAN OF NEVADA VOTED WITH THE GOP TO DELETE THE SOCIAL SECURITY TAX THE REPUBLICAN AMENDMENTS WERE AN ATTEMPT TO PUT SUCH DEMOCRATS ON THE SPOT ALL THE DEMOCRATS WHO BROKE RANKS TO OPPOSE THE GASOLINE OR SOCIAL SECURITY TAXES FACE REELECTION NEXT YEAR EXCEPT FOR THE TWO ALABAMANS THE REPUBLICANS SENSITIVE TO DEMOCRATS' ATTACKS ON THE GOP AS THE PARTY OF THE RICH DIDN'T TRY TO KILL THE MAJOR TAX INCREASE IN THE SENATE BILL MR CLINTON'S PROPOSAL TO INCREASE INCOME TAX RATES FOR THE WEALTHIEST INDIVIDUALS WHICH WOULD RAISE NEARLY 107 BILLION OVER FIVE YEARS INSTEAD THEY TRIED TO EXEMPT THE TYPES OF SMALL BUSINESSES THAT PAY INDIVIDUAL INCOMETAX RATES SOLE PROPRIETORSHIPS PARTNERSHIPS AND SOCALLED S CORPORATIONS SENATORS VOTED 5642 IN FAVOR OF THE GOP PLAN BUT 60 VOTES WERE NEEDED TO PASS IT BECAUSE OF PARLIAMENTARY REASONS THIRTEEN DEMOCRATS CROSSED OVER TO VOTE WITH ALL THE REPUBLICANS THE SUCCESSFUL AMENDMENT TO MORE THAN DOUBLE SMALL BUSINESSES' WRITEOFF FOR THEIR INVESTMENTS TO 20500 WAS AN INCREASE FROM THE 15000 WRITEOFF THAT THE SENATE FINANCE COMMITTEE APPROVED LAST WEEK IT'S STILL SHORT OF THE 25000 LEVEL THAT THE HOUSE PASSED IN ITS DEFICITREDUCTION BILL LAST MONTH AT MR CLINTON'S REQUEST SO THE FINAL AMOUNT IS UP TO A LATER HOUSESENATE CONFERENCE SENATE REPUBLICANS KILLED AN AMENDMENT FROM BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN TO EXTEND CAPS ON FEDERAL SPENDING THAT WERE FIRST IMPOSED AFTER THE 1990 BUDGET SUMMIT AND TO IMPOSE CONTROLS ON SPENDING FOR SOCALLED ENTITLEMENT PROGRAMS OTHER THAN SOCIAL SECURITY INCLUDING MEDICARE AND MEDICAID FARM SUBSIDIES AND VETERANS BENEFITS REPUBLICANS SAID THE SPENDING CONTROLS WEREN'T TIGHT ENOUGH BUT THEY WOULD HAVE BUILT ON CURRENT LIMITATIONS THAT REPUBLICANS HAVE SUPPORTED IN THE PAST AND THE PARTY'S STANCE REFLECTED ITS NEARUNANIMITY IN OPPOSING EVERY ASPECT OF SENATE DEMOCRATS' BILL THE VOTE WAS 5443 FOR THE SASSER AMENDMENT BUT BECAUSE OF REPUBLICANS' PARLIAMENTARY OBJECTION TO THE AMENDMENT IT NEEDED 60 VOTES TO PASS ALL REPUBLICANS WHO WERE PRESENT VOTED AGAINST THE AMENDMENT ALONG WITH SEN SHELBY DESPITE UNRELENTING GOP ATTACKS THE DEMOCRATS CONTINUE TO DESCRIBE THEIR BILL AS REDUCING THE DEFICIT BY MORE THAN 500 BILLION OVER THE NEXT FIVE YEARS THE REPUBLICANS IN EFFECT ARE OBJECTING TO DEMOCRATS' DOING WHAT REPUBLICANS HAVE DONE IN THE PAST THE DEFICITREDUCTION TOTAL FOR INSTANCE COUNTS THE DIFFERENCE BETWEEN WHAT SPENDING WOULD BE IF IT WERE SIMPLY ADJUSTED FOR INFLATION AND WHAT IT WOULD BE IF CONGRESS ADHERES TO THE PROPOSED CAPS ON SPENDING THE TALLY ALSO COUNTS THE SAVINGS IN INTEREST COSTS ANTICIPATED BECAUSE A SMALLER DEFICIT MEANS THE GOVERNMENT WOULD HAVE TO BORROW LESS BUT THE DEMOCRATS ARE VULNERABLE TO SOME CRITICISM THEY HAVE DOUBLECOUNTED ABOUT 44 BILLION OF SAVINGS THAT THEY ALREADY TOOK CREDIT FOR WHEN THE 1990 DEFICITREDUCTION BILL WAS PASSED THEY ALSO ASSUME THAT THE TREASURY WILL SAVE 16 BILLION BY SHORTENING THE AVERAGE MATURITY OF ITS DEBT AS MR CLINTON'S BUDGET DID BUT SINCE THE BUDGET WAS ISSUED THE TREASURY HAS ANNOUNCED THE SPECIFICS OF ITS BORROWING PLANS AND IT NOW PUTS THE SAVINGS AT ABOUT 10 BILLION WHILE THE CONGRESSIONAL BUDGET OFFICE ESTIMATES ABOUT 6 BILLION ALSO SENATE DEMOCRATS SAVED ROUGHLY ANOTHER 16 BILLION OVER FIVE YEARS BY EXTENDING SEVERAL BUSINESSTAX INCENTIVES IN THE BILL TEMPORARILY RATHER THAN PERMANENTLY AS MR CLINTON WANTED THE PROVISIONS INCLUDING A TAX CREDIT FOR BUSINESSES' RESEARCH COSTS SURELY WILL BE EXTENDED WHEN THEY LAPSE AS THEY HAVE BEEN IN THE PAST BUT BUDGETS PROJECT EACH PROVISION'S COST OVER FIVE YEARS SO AN EXTENSION OF ONLY A YEAR OR TWO MAKES IT LOOK LIKE THE PROVISIONS DON'T COST MUCH ALSO YESTERDAY DEMOCRATS HOWARD METZENBAUM OF OHIO AND PAUL SIMON OF ILLINOIS AGREED NOT TO FIGHT THE BILL'S PROVISION CREATING A 14YEAR WRITEOFF FOR SOCALLED INTANGIBLE ASSETS ACQUIRED IN BUSINESS TAKEOVERS SUCH AS CUSTOMER LISTS AND A COMPANY'S GOODWILL THE VALUE OF ITS REPUTATION THE SENATORS SAID THEY WERE SATISFIED BY A WRITTEN PROMISE FROM FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY THAT DURING THE HOUSESENATE CONFERENCE HE WOULD INSIST ON LIMITING THE WRITEOFF TO 75 OF THE ASSETS' VALUE THE HOUSE BILL WOULD ALLOW THE FULL VALUE TO BE WRITTEN OFF 9306250132 930526 DEFICIT REDUCTION MADE EASY BY ROBERT J BARRO THE ADMINISTRATION CLAIMS TO BE EAGER TO REDUCE THE BUDGET DEFICIT BUT APPARENTLY CANNOT FIND MUCH EXPENDITURE THAT CAN POSSIBLY BE CUT HENCE THE FOCUS ON RAISING TAXES AND THE FREQUENT QUERY TO ADVOCATES OF LOWER SPENDING WHERE WOULD YOU CUT THIS QUESTION IS APPARENTLY INTENDED TO BE A MAJOR CHALLENGE BUT DOES THE ADMINISTRATION SERIOUSLY BELIEVE THAT A BUDGET OF 15 TRILLION DOES NOT CONTAIN MANY DOLLARS OF SPENDING THAT COULD BE USEFULLY ELIMINATED CONSIDER AS AN ILLUSTRATION THE NEARBY LIST OF PROPOSED REDUCTIONS BASED ON NUMBERS FOR OUTLAYS IN FISCAL 1993 THIS PROPOSAL LEAVES UNTOUCHED SUCH MAJOR AREAS AS DEFENSE INTEREST PAYMENTS SOCIAL SECURITY MEDICARE AND MEDICAID VETERANS' BENEFITS AND DEPOSIT INSURANCE ALTHOUGH THE PARTICULARS CAN BE DEBATED AND THE LIST CAN BE EXPANDED THE BASIC POINT IS THAT IT IS FEASIBLE TO CUT MORE THAN 150 BILLION IN ANNUAL SPENDING FROM AREAS OUTSIDE OF DEFENSE SOCIAL SECURITY AND HEALTH THIS DOWNSIZING OF GOVERNMENT IS DESIRABLE WHETHER OR NOT WE HAVE A BUDGET DEFICIT BUT THESE CUTS WOULD IN FACT ACHIEVE A DRAMATIC DECREASE IN THE DEFICIT WITHOUT ADDITIONAL TAXES SOME FURTHER SAVINGS WOULD ALSO RESULT BECAUSE WITH MUCH OF THEIR MISSIONS REMOVED THE DEPARTMENTS OF AGRICULTURE HOUSING AND ENERGY COULD BE ELIMINATED AS SEPARATE ADMINISTRATIVE ENTITIES I DO NOT PROPOSE FURTHER CUTS IN DEFENSE SPENDING 291 BILLION IN 1993 WITH PROJECTED DECLINES IN NOMINAL SPENDING THROUGH 1997 BECAUSE THE WORLD DOES NOT CURRENTLY LOOK SAFE ENOUGH FOR SUCH REDUCTIONS TO BE PRUDENT ANYWAY THE ONLY TIME THAT I EVER GOT THE BETTER OF MILTON FRIEDMAN WAS WHEN HE DEMANDED THAT I NAME AN AREA OF FEDERAL SPENDING IN WHICH I THOUGHT PEOPLE WERE GETTING THEIR MONEY'S WORTH AND I ANSWERED NATIONAL DEFENSE TO WHICH MILTON RESPONDED I MEANT AN AREA OF NONDEFENSE FEDERAL SPENDING ON THE OTHER HAND IF WE END UP USING OUR MILITARY CAPABILITY MAINLY TO ASSIST THE UNITED NATIONS IN HUMANITARIAN EFFORTS LIKE SOMALIA AND BOSNIA THEN SMALLER OUTLAYS FOR DEFENSE MAY BE ADVISABLE I DO NOT ADVOCATE REDUCTIONS IN INTEREST PAYMENTS BECAUSE THE MAIN SUGGESTION THAT HAS BEEN MADE IN THIS AREA SHIFTS BETWEEN LONGTERM AND SHORTTERM DEBT ARE UNLIKELY TO ACHIEVE LONGRUN SAVINGS FORTUNATELY NO ONE HAS YET PROPOSED THAT THE US GOVERNMENT FOLLOW THE THIRD WORLD ROUTE OF DEFAULTING ON PART OF ITS DEBT THE GOVERNMENT'S MEDICAL OUTLAYS WHICH INCLUDE 133 BILLION FOR MEDICARE AND 81 BILLION FOR MEDICAID IN 1993 ARE ENORMOUS AND OUGHT TO BE SCALED BACK INSTEAD WE ARE HEARING AN ARRAY OF PROPOSALS FOR NEW WELFARE PROGRAMS TO BENEFIT THE MEDICALLY NEEDY WHO ARE NEITHER OLD NOR POOR BUT THE MEDICAL AREA IS A COMPLEX SUBJECT THAT IS WORTH A SEPARATE DISCUSSION I DO SLEEP BETTER WITH THE KNOWLEDGE THAT THIS IMPORTANT FIELD IS IN THE HANDS OF THE HILLARYMAGAZINER 500 A GROUP THAT APPARENTLY WANTS TO SOCIALIZE EVERYTHING IN SIGHT FINALLY I SHOULD COMMENT ON THE RETIREMENT PROGRAM UNDER SOCIAL SECURITY 270 BILLION FOR OLD AGE AND SURVIVORS IN 1993 ALTHOUGH THIS ITEM HAS BEEN SACRED IT IS ACTUALLY ONE OF THE MOST BIZARRE PROGRAMS IN THE ENTIRE BUDGET BASICALLY THE GOVERNMENT DISTORTS THE ECONOMY BY LEVYING ABOUT 300 BILLION IN PAYROLL TAXES IN ORDER TO TAKE MONEY FROM CHILDREN AND GIVE IT TO THEIR PARENTS THEN THE GOVERNMENT PROMISES THE CHILDREN THAT THEY WILL BE ABLE TO TAX THEIR KIDS LATER TO GET PART OF THEIR MONEY BACK THE INITIAL INTENT OF THE SOCIAL SECURITY PROGRAM WAS TO ENSURE THAT WORKERS AND THEIR SPOUSES WOULD HAVE A MINIMUM OF INCOME WHEN THEY WERE OLD IN PARTICULAR TO MAKE CERTAIN THAT INDIGENT ELDERLY WOULD NOT END UP ON THE PUBLIC DOLE THE EFFICIENT WAY TO ACCOMPLISH THIS GOAL IS TO MANDATE A MINIMUM LEVEL OF CONTRIBUTIONS BY WORKERS INTO PENSION FUNDS WHICH COULD BE ADMINISTERED PRIVATELY AND HELD IN A VARIETY OF DESIRED FORMS THE LEVEL OF RETIREMENT BENEFITS WOULD DEPEND ON THE MARKET VALUE OF THE PENSION FUNDS IN PARTICULAR THESE BENEFITS WOULD NOT BE DETERMINED BY A POLITICAL DEBATE BETWEEN THE YOUNG AND THE OLD AND COULD NOT RISE DRAMATICALLY JUST BECAUSE SOMEONE LIKE RICHARD NIXON THOUGHT IT WAS A GOOD IDEA THIS KIND OF PRIVATIZED SOCIAL SECURITY SCHEME HAS BEEN SUCCESSFULLY IMPLEMENTED IN CHILE ALONG WITH A CAREFUL TRANSITIONAL PLAN THAT GRANDFATHERED THE OLDER PEOPLE WHO WERE PART OF THE GOVERNMENT PROGRAM SEE THE MAY 21 ARTICLE BY ROBERT GENETSKI ON THIS PAGE A SIMILAR SYSTEM IS CURRENTLY PLANNED FOR ARGENTINA THE NEXT TIME WE HAVE A COMMISSION ON SOCIAL SECURITY IT SHOULD FORMULATE THIS TYPE OF PLAN INSTEAD OF FOCUSING ON INCREASES IN PAYROLL TAXES NO DOUBT SOMEONE IN THE ADMINISTRATION WILL SOON SAY AGAIN THAT MORE TAXES ARE NEEDED TO REDUCE THE BUDGET DEFICIT BECAUSE AFTER ALL WHERE WOULD YOU CUT WE ALL KNOW HOWEVER THAT WHAT THE ADMINISTRATION MEANS IS WE DON'T REALLY WANT TO CUT SEE RELATED LETTER LETTERS TO THE EDITOR TVA WE PAY OUR WAY WSJ JUNE 25 1993 9305260005 YY93 MM06 9306250109 930528 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY REPUBLICANS PLAN ATTACKS ON CLINTON'S HEALTH PLAN FUNDAMENTAL PRINCIPLES THAT REPUBLICANS HAVE SAID THEY STOOD FOR ARE GOING TO GET VIOLATED SAYS FORMER BUSH HEALTH AIDE GAIL WILENSKY WHO IS NOW ADVISING GOP LAWMAKERS ON A COUNTERPUNCH THE MAIN OBJECTIONS THE CLINTON PLAN'S EXPECTED COST CONTROLS AND REQUIREMENT THAT EMPLOYERS HELP PAY FOR THEIR WORKERS' INSURANCE EVEN MODERATE SEN DURENBERGER IS OPPOSED TO A MANDATE BUT GOP LAWMAKERS HAVE NO UNIFIED ALTERNATIVE TO OFFER IN THE SENATE CHAFEE AND OTHER MODERATES CRAFT A MANAGED COMPETITION BILL WHILE CONSERVATIVES LED BY PRESIDENTIAL HOPEFUL GRAMM ARE PUSHING A VOUCHERBASED SYSTEM HOUSE REPUBLICANS ARE IN SUCH DISARRAY ON THE ISSUE THAT NO LEADING ALTERNATIVE HAS EMERGED ONE QUESTION THAT HAS THEM AT ODDS ARE THEY WILLING TO INCREASE SPENDING EVEN A LITTLE BIT IN THE SHORTTERM FOR HEALTHCARE REFORM IT'S BACK THE S&L BAILOUT RETURNS TO BEDEVIL DEMOCRATS THE ADMINISTRATION'S EFFORT TO KEEP THE SAVINGSANDLOAN MESS PORTRAYED AS A REAGANBUSH PROBLEM BY PUSHING ONE LAST BIG FUNDING REQUEST THROUGH CONGRESS FOUNDERS AS LAWMAKERS SUFFER STICKER SHOCK AT THE 40 BILLIONPLUS PRICE TAG LAWMAKERS ARE IN THE PROCESS OF SLASHING THE AMOUNT WHILE ATTACHING NEW CONDITIONS VARIOUS SNARLS AND OTHER LEGISLATIVE PRIORITIES COULD PUSH A HOUSE FLOOR VOTE AND HOUSESENATE CONFERENCE INTO JULY OR AUGUST MEANTIME CONGRESS MAY OPT TO EXTEND THE RESOLUTION TRUST CORP'S POWER TO TAKE OVER INSOLVENT THRIFTS FOR ANOTHER YEAR BEYOND SEPT 30 KEEPING THE UNPOPULAR RTC IN THE SPOTLIGHT OFFICIALS SEEK TO SOFTEN THEIR NEW GETTOUGH POLICY TOWARD JAPAN CRITICS COMPLAIN THE NEW POLICY WHICH DEMANDS JAPAN CUT ITS TRADE SURPLUS IN HALF AND LIFT FACTORY IMPORTS BY A THIRD MAY TRIGGER A BACKLASH THERE'S A BALANCE NEEDED OF STICKS AND CARROTS TO GET JAPAN TO CHANGE POLICY SAYS FORMER COMMERCE SECRETARY PETER PETERSON SENSITIVE TO THE CRITICISM ADMINISTRATION OFFICIALS LOOK TO ENCOURAGE COOPERATION EXPLORING PATENT LAW CHANGES TO PROMOTE TECHNOLOGY SWAPS AND HAVING THE JAPANESE GOVERNMENT LEASE PUBLIC LANDS TO US COMPANIES TREASURY OFFICIALS REVERSE COURSE ON THE YEN INTERVENING IN EXCHANGE MARKETS YESTERDAY TO TRY TO STOP ITS RISE WHICH HAS HURT JAPANESE EXPORTERS BUT DESPITE THE EFFORT THE YEN HIT A NEW HIGH TREASURY UNDERSECRETARY SUMMERS PREVIOUSLY A PROPONENT OF THE STRONGYEN STRATEGY COMPLAINS THE MARKET HAS MOVED TOO FAR TOO FAST CONGRESSIONAL AIDES GROUSE THE ADMINISTRATION STILL HASN'T BRIEFED THEM ON THE NEW TRADE POLICY WHICH WILL BE PRESENTED TO THE JAPANESE JUNE 7 ET TU THE ROSE LAW FIRM HILLARY RODHAM CLINTON'S OLD FIRM SENDS A LETTER ON BEHALF OF ARKANSAS ENERGY INTERESTS URGING DEFEAT OF THE BTU TAX PROPOSED BY HER HUSBAND I'M ADVOCATING MY CLIENT'S POSITION EXPLAINS ROSE ATTORNEY STEPHEN JOINER MEANWHILE NORTHERN STATES POWER ENERGY SECRETARY O'LEARY'S FORMER EMPLOYER JOINS A COALITION OPPOSING THE TAX CLINTON AIDES PLAN TO STEP UP CONTACTS WITH REPUBLICANS EFFORTS ALREADY ARE UNDER WAY TO RECRUIT GOP SUPPORT FOR THE NATIONAL SERVICE AND WELFARE OVERHAUL PLANS SOME STAFFERS MAY BE SPECIFICALLY TASKED JUST TO COURT MODERATE REPUBLICANS ON THE OTHER HAND TOP CLINTON LOBBYIST PASTER HAS HAD JUST ONE MEETING WITH GOP LEADER DOLE CONSERVATIVE DEMOCRATS QUASH A LATENIGHT DINGELL EFFORT TO REQUIRE THAT PROPOSED MEDICARE AND MEDICAID CUTS BE MATCHED BY RECOMMENDATIONS FOR PRIVATESECTOR HEALTH SAVINGS DINGELL HAD QUIETLY SLIPPED THE PROVISION INTO THE COMPROMISE CLINTON ECONOMIC PLAN THE CONSERVATIVES FEARED IT WAS A BACKDOOR STEP TOWARD NATIONAL LIMITS ON HEALTH SPENDING ECONOMISTS BLAME WASHINGTON GRIDLOCK FOR THE MALAISE OF MANY AMERICANS BUT DON'T THINK THEIR BAD MOOD WILL HURT CONSUMER SPENDING ARLINGTON VA ECONOMIST JOHN MUELLER SAYS THE DROP IN CONSUMER CONFIDENCE REFLECTS APPREHENSION ABOUT THE POLITICAL PROCESS RATHER THAN APPREHENSION ABOUT THEIR OWN FINANCES A CASE IN POINT CAR SALES HAVE BEEN STRONG THE US SENDS MIXED SIGNALS ON ITS COMMITMENT TO THE KURDS KURDISH REPRESENTATIVES COMPLAIN THAT GORE'S AND CHRISTOPHER'S PUBLIC SUPPORT HASN'T BEEN MADE TANGIBLE THE KURDS WANT ANTITANK WEAPONS EXPANSION OF THE USPATROLLED NOFLY ZONE AND A PARTIAL LIFTING OF THE ECONOMIC SANCTIONS AGAINST IRAQ SO THEY CAN BENEFIT FROM THE OIL BENEATH THEIR TERRITORY KURDISH OFFICIALS CLAIM SADDAM HUSSEIN IS MASSING TROOPS TO RETAKE SOME KURD TERRITORY BUT THE ADMINISTRATION SAYS IT SEES NO SIGNS OF AN IMMINENT ATTACK CLINTON OFFICIALS ACKNOWLEDGE THAT THEIR BUDGET CONTAINED NO FUNDS FOR THE KURDS BUT SAY IT WAS AN OVERSIGHT AND BACK AN AID BILL PUSHED BY SEN INOUYE THE US LEANS ON OILRICH PERSIAN GULF STATES TO PROVIDE FUNDS TO THE KURDS AND HAS ORGANIZED AN EMERGENCY AID CONFERENCE IN GENEVA NEXT MONTH MINOR MEMOS CLINTON'S GREETING TO SID JOHNSON PRESIDENT OF THE ARKANSAS EDUCATION ASSOCIATION WHO BOUGHT A FLASHY NEW TIE FOR A WHITE HOUSE VISIT HEY SID GREAT TIE LOOKS LIKE THE MAP OF BOSNIA AN EXBUSH WHITE HOUSE OFFICIAL OFFERS THE PERFECT CANDIDATE TO HEAD THE WHITE HOUSE TRAVEL OFFICE JOHN SUNUNU SEE RELATED LETTER LETTERS TO THE EDITOR AN INTERESTED OBSERVER WSJ JUNE 25 1993 9305280054 YY93 MM06 9306250070 930512 LAW LEGAL BEAT CLAIMS INCREASE FOR NOINJURY MEDICAL TESTING BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL IT USED TO BE THAT ONLY SOMEONE WITH A DETECTABLE INJURY OR ILLNESS COULD SUE SOMEONE ELSE FOR DAMAGES THEN CAME THE NEW WAVE IN PLAINTIFFS' LITIGATION MEDICALMONITORING CLAIMS IN THESE LAWSUITS PLAINTIFFS WHO HAVE BEEN EXPOSED TO ALLEGEDLY HAZARDOUS SUBSTANCES BUT WHO OFTEN HAVE NO KNOWN INJURIES ARE SEEKING AND SOMETIMES GETTING DAMAGES TO PAY FOR CONTINUING MEDICAL TESTING JUST IN CASE PROBLEMS DEVELOP LATER TYPICAL IS A PENDING CASE IN WHICH 27 CURRENTLY HEALTHY PEOPLE WHO LIVE NEAR HIGHVOLTAGE POWER LINES IN SAN CLEMENTE CALIF WANT A POWER COMPANY TO PAY TO HAVE THEM TESTED PERIODICALLY FOR ANY SIGNS OF ILLNESS RELATED TO ELECTROMAGNETIC RADIATION IN 1990 AN ELECTROMAGNETICRADIATION CASE AGAINST BOEING CO BROUGHT BY THE SAME LAWYER MICHAEL WITHEY INCLUDED A SETTLEMENT FOR AS MANY AS 10 YEARS OF MEDICAL MONITORING FOR ABOUT 300 WORKERS DAMAGES FOR MEDICAL MONITORING ARE CONTROVERSIAL BOTH BECAUSE THEY ADD TO THE COST OF LITIGATION AND PLAINTIFFS' LAWYERS' CONTINGENCY FEES AND BECAUSE THEY UNDERMINE THE PRINCIPLE THAT LEGAL DAMAGES COMPENSATE FR PROVEN INJURIES RATHER THAN SPECULATIVE ONES AND SO FAR COURTS HAVE BEEN DIVIDED ON WHETHER SUCH DAMAGES SHOULD BE PERMITTED NOW THOUGH A SHOWDOWN IS APPROACHING THE INFLUENTIAL CALIFORNIA SUPREME COURT HAS AGREED TO REVIEW TWO MEDICALMONITORING CASES ONE IN WHICH A LOWER APPEALS COURT RULED ONE WAY AND THE OTHER IN WHICH A SEPARATE COURT TOOK THE OPPOSITE POSITION THE CALIFORNIA HIGH COURT'S DECISION IS EXPECTED TO BE CLOSELY READ BY LAWYERS FOR COMPANIES THAT PRODUCE ANY KIND OF HAZARDOUS SUBSTANCE HUNDREDS OF MEDICALMONITORING CASES ARE ALREADY WINDING THEIR WAY THROUGH THE COURTS AND THE CIRCUMSTANCES THAT SPAWN SUCH CASES KEEP EXPANDING MEDICALMONITORING DAMAGES ARE BEING DEMANDED IN CASES INVOLVING EVERYTHING FROM TOXICWASTE DUMPS TO BREAST IMPLANTS WHAT PARTICULARLY RAISES THE IRE OF DEFENSE LAWYERS ABOUT THESE CLAIMS IS THAT PLAINTIFFS OFTEN EXHIBIT NO SYMPTOMS MANY PEOPLE WILL EVENTUALLY DEVELOP CANCER THESE LAWYERS ARGUE AND THERE'S NO WAY TO PROVE THAT ANY ILLNESS PLAINTIFFS DEVELOP AFTER THE TESTING BEGINS WAS CAUSED BY AN EARLIER EXPOSURE TO TOXIC CHEMICALS THIS IS A WAY OF GETTING PLAINTIFFS INTO COURT WHO COULDN'T GET THERE OTHERWISE SAYS BERT BLACK A DEFENSE LAWYER AT BALTIMORE LAW FIRM WEINBERG & GREEN WHO HAS HANDLED MEDICALMONITORING CASES ONCE THE CASE GETS TO COURT THE CHIEF QUESTIONS ARE HOW GREAT A RISK EXISTS THAT THE PLAINTIFFS WILL CONTRACT A DISEASE AS A RESULT OF THE EXPOSURE AND WHETHER THE RISK CAN BE SCIENTIFICALLY PROVEN IN ADVANCE MR BLACK SAYS MUCH OF THE VOLUMINOUS SCIENTIFIC TESTIMONY NEEDED TO PROVE AND REBUT THE NEED FOR MEDICAL MONITORING IS SPECULATIVE TRYING TO QUANTIFY OR GET ANY REASONABLE UNDERSTANDING OF THE RISKS IS SO DIFFICULT THAT INFORMATION JUST REALLY IS NOT AVAILABLE IN MOST CASES THE NEED TO SCROUNGE AROUND FOR ELUSIVE EVIDENCE MAKES MEDICALMONITORING CASES VERY EXPENSIVE LITIGATION BECAUSE IT'S A BATTLE OF EXPERTS SAYS LYNN M LUKER OF NEW ORLEANS LAW FIRM ADAMS & REESE PLAINTIFFS' LAWYERS ARGUE THAT PAYING FOR CHECKUPS IS THE LEAST THAT COMPANIES CAN DO FOR PEOPLE EXPOSED TO HAZARDOUS SUBSTANCES I BELIEVE THAT THAT'S THE WAVE OF THE FUTURE SAYS STANLEY M CHESLEY A CINCINNATI PLAINTIFFS' LAWYER NOTING THAT MANY PEOPLE DON'T HAVE MEDICAL INSURANCE MR CHESLEY NOW IS ASKING FOR MEDICALMONITORING DAMAGES AS PART OF HIS PENDING CASE ON BEHALF OF WOMEN WHO RECEIVED BREAST IMPLANTS PREVIOUSLY HE DEMANDED MEDICAL MONITORING AND A RANGE OF OTHER DAMAGES FOR RESIDENTS LIVING NEAR A GOVERNMENTOWNED URANIUMPRODUCTION PLANT OPERATED BY NLO INC AND ITS PARENT NL INDUSTRIES INC HOUSTON THE CASE WAS SETTLED IN 1989 WITH THE GOVERNMENT AGREEING TO PAY 78 MILLION FOR THE DAMAGES HE SAYS THE OHIO PLAINTIFFS IN THAT CASE HAVE BEEN MONITORED FOR THREE YEARS AND THAT IT HAS BEEN TREMENDOUSLY SUCCESSFUL DOCTORS HE ADDS HAVE FOUND UNDETECTED CANCER AND LIVES HAVE BEEN SAVED OFTEN MEDICAL MONITORING IS ONLY ONE OF SEVERAL CLAIMS IN COMPLEX LITIGATION THAT ULTIMATELY IS RESOLVED THROUGH OUTOFCOURT SETTLEMENT BUT INCREASINGLY THE HARD TASK OF ASSESSING THE MEDICAL FUTURE OF PLAINTIFFS IS FALLING TO THE COURTS IN ONE OF THE CASES NOW BEFORE CALIFORNIA'S HIGH COURT RESIDENTS CLAIMED THEIR WATER SYSTEMS HAD BEEN CONTAMINATED BY CHEMICALS DEPOSITED AT A WASTE SITE BY FIRESTONE TIRE & RUBBER CO BEFORE IT WAS TAKEN OVER BY BRIDGESTONE CORP OF JAPAN IN 1988 THE CHEMICALS INCLUDED BENZENE AND VINYL CHLORIDE BOTH KNOWN CARCINOGENS AN APPEALS COURT RULED IN FAVOR OF THE PLAINTIFFS ON SOME OF THEIR CLAIMS BUT THE COURT THREW OUT 142975 IN MEDICALMONITORING DAMAGES AWARDED BY A LOWER COURT THE APPEALSCOURT JUDGES NOTED THAT ALTHOUGH THEY WERE SYMPATHETIC WE ARE PRESENTLY UNWILLING TO CREATE A NEW CAUSE OF ACTION FOR MEDICALMONITORING COSTS THE COURT RULED THAT SUCH DAMAGES SHOULDN'T BE AWARDED WHEN THE EVIDENCE ESTABLISHES THAT A PLAINTIFF HAS AN INCREASED RISK OF CANCER BUT DOES NOT ESTABLISH THAT THE CANCER IS REASONABLY CERTAIN TO OCCUR OR THAT THERE IS A REASONABLE MEDICAL PROBABILITY OF IT OCCURRING IN THE OTHER CASE NOW BEFORE THE CALIFORNIA HIGH COURT PLAINTIFFS ALLEGED THEY DRANK CONTAMINATED WATER AT A PUBLIC SCHOOL THE INTERMEDIATE APPEALS COURT IN ALLOWING A CLAIM FOR MEDICALMONITORING DAMAGES RULED THAT RISK OF DISEASE IS ONLY ONE IMPORTANT FACTOR IN ASSESSING THE NEED FOR MONITORING THE COURT SAID THE REASONABLE CERTAINTY THAT A PLAINTIFF WILL INCUR THE COST OF TESTING CONSTITUTED AN ACTUAL LOSS MAKING IT A LEGITIMATE CANDIDATE FOR A DAMAGE AWARD FREDERICK D BAKER OF SAN FRANCISCO LAW FIRM SEDGWICK DETERT MORAN & ARNOLD WHO REPRESENTS THE SHELL OIL CO UNIT OF ROYAL DUTCH/SHELL GROUP A DEFENDANT SAYS THE PROBLEMS WITH MEDICALMONITORING CASES ARE ILLUSTRATED BY HIS CASE BECAUSE THE PLAINTIFFS WERE EXPOSED TO INFINITESIMALLY SMALL AMOUNTS OF PESTICIDES FOUND TO CAUSE DISEASE IN LABORATORY ANIMALS IN ENORMOUS DOSES HE SAID THAT IF THE DECISION IS UPHELD ANY BUSINESS THAT CREATES ANY BYPRODUCT THAT IS SUSPECTED OF CAUSING CANCER CAN BE LIABLE IT IS POTENTIALLY A HUGE PROBLEM FOR BUSINESS ANDREA C NELSON OF SACRAMENTO LAW FIRM MILLER & ROLFE SAYS MR BAKER'S COMMENTS REFLECT THE STANDARD DEFENSE ARGUMENT EXPOSURE TO EVEN A SMALL AMOUNT OF INVISIBLE CHEMICALS SHE SAYS CAN CAUSE SERIOUS HEALTH PROBLEMS IT'S HARD FOR US TO CONCEPTUALIZE SOMETHING WE CAN'T SEE SHE ADDS ENTERING A HOT DEBATE IN THE SECURITIES FIELD THE FEDERAL APPEALS COURT IN CHICAGO RULED THAT A LAW BARRING FALSE STATEMENTS IN A PROSPECTUS APPLIES TO SECONDARY SALES AS WELL AS INITIAL PUBLIC OFFERINGS THE SEVENTH US CIRCUIT COURT OF APPEALS SAID PACIFIC DUNLOP HOLDINGS INC CAN SUE UNDER SECTION 122 OF THE SECURITIES ACT TO RESCIND ITS PURCHASE OF MOST OF THE STOCK IN GNB HOLDINGS INC A LEAD AND BATTERY CONCERN PACIFIC DUNLOP BOUGHT THE STOCK IN 1987 FOR 670 MILLION IN A PRIVATE SALE FROM INVESTMENT BANK ALLEN & CO WHICH OWNED 20 OF GNB AND 14 OTHER STOCKHOLDERS PACIFIC DUNLOP A UNIT OF AUSTRALIA'S PACIFIC DUNLOP LTD ALLEGES THAT THE STOCKHOLDERS FALSELY PROMISED IN A PROSPECTUS THAT GNB'S LEAD AND BATTERY BUSINESSES HAD NO ENVIRONMENTAL LIABILITIES SECTION 122 PROHIBITS FALSE STATEMENTS IN A PROSPECTUS AND ALLOWS BUYERS OF STOCK TO SUE IF ANY FALSE STATEMENTS ARE MADE SECTION 122 IS A FAVORITE TOOL OF PLAINTIFFS BECAUSE IT DOESN'T REQUIRE PROOF THAT THE SELLER KNOWINGLY MADE THE FALSE STATEMENT COURTS HAVE BEEN DIVIDED HOWEVER OVER WHETHER THE SECTION APPLIES TO PRIVATE STOCK SALES IN THE SECONDARY MARKET OR ONLY TO INITIAL PUBLIC OFFERINGS THE SEVENTH CIRCUIT'S RULING WHICH REVERSED A LOWER COURT IS AT ODDS WITH A TWOYEAROLD DECISION BY THE FEDERAL APPEALS COURT IN PHILADELPHIA THE COURT IN PHILADELPHIA ADOPTED THE NARROWER VIEW THAT THE SECTION ONLY APPLIES TO PUBLIC OFFERINGS MICHAEL J KOENIGSKNECHT A LAWYER AT CHICAGO LAW FIRM GARDNER CARTON & DOUGLAS WHICH REPRESENTED PACIFIC DUNLOP SAID THE RULING REVERSES A TREND IN RECENT YEARS TOWARD LIMITING THE ABILITY OF PRIVATE PARTIES TO SUE UNDER THE SECURITIES ACT JIM MCMILLIN AN ATTORNEY AT WERBEL MCMILLIN & CARNELUTTI IN NEW YORK WHICH REPRESENTED ALLEN & CO SAID HIS CLIENT WILL PROBABLY SEEK AN APPEAL TO THE US SUPREME COURT THIS IS AN IMPORTANT ISSUE AND WOULD BE A VERY APPROPRIATE CASE FOR THE SUPREME COURT TO LOOK AT SAID MR MCMILLIN IT'S A CLOSE QUESTION THAT NEEDS RESOLUTION DOMINO'S PIZZA INC AGREED TO A 28 MILLION SETTLEMENT IN A CASE INVOLVING A WOMAN KILLED IN A COLLISION WITH A PIZZA DELIVERYMAN'S CAR THE CASE WAS BROUGHT BY THE HUSBAND OF SUSAN WAUCHOP WHOSE VAN WAS STRUCK BY THE DELIVERYMAN'S CAR NEAR THE INDIANAMICHIGAN BORDER IN 1990 THE SUIT ALLEGED THAT THE DRIVER DROVE NEGLIGENTLY IN TRYING TO MEET A DELIVERY DEADLINE DOMINO'S FRANCHISES TYPICALLY GUARANTEE DELIVERY WITHIN 30 MINUTES IN RECENT YEARS PLAINTIFFS' LAWYERS AND CONSUMER GROUPS HAVE ACCUSED THE ANN ARBOR MICH COMPANY OF SACRIFICING SAFETY FOR SPEEDY SERVICE SEVERAL DEATHS HAVE BEEN REPORTED IN ACCIDENTS INVOLVING DOMINO'S DRIVERS JOEL GRAZIANI A LAWYER FOR DOMINO'S SAID THE DRIVER IN THE WAUCHOP CASE WAS ON HIS WAY BACK TO THE STORE WHEN THE ACCIDENT OCCURRED AND HAD ALREADY MADE HIS DELIVERY THIS WAS A CASE OF BAD WEATHER AND IT WAS JUST AN UNFORTUNATE ACCIDENT SAID MR GRAZIANI THERE WAS NO REASON TO WORRY ABOUT THE 30MINUTE GUARANTEE HE SAID THE COMPANY SETTLED MOSTLY BECAUSE IT FEARED THE JURY WOULD BE SWAYED BY SYMPATHY FOR MS WAUCHOP THE TRIAL WAS UNDER WAY IN FEDERAL COURT IN SOUTH BEND IND ROBERT PAVICH A LAWYER FOR MS WAUCHOP'S FAMILY SAID THE 30MINUTE DEADLINE POLICY AFFECTED THE DELIVERYMAN'S DRIVING EVEN THOUGH HE WAS RETURNING FROM A DELIVERY THE CLOCK IS RUNNING WHETHER A PIZZA IS SITTING NEXT TO THE DRIVER ON THE CAR OR WHETHER THE PIZZA IS SITTING ON THE RACK AND HE'S ON HIS WAY BACK TO THE STORE TO GET IT MR PAVICH SAID THE SETTLEMENT WHICH CAME AS THE TRIAL WAS ABOUT TO BEGIN ITS SECOND WEEK WILL BE PAID MOSTLY BY INSURERS FOR THE DRIVER AND FOR THE FORMER OWNER OF THE FRANCHISE SAID A SPOKESMAN FOR DOMINO'S AFFILIATING ABROAD NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM HAS TEAMED UP WITH BOESEBECK BARZ & PARTNERS A FRANKFURT LAW FIRM AND STROMMER REICHROHRWIG & PARTNERS OF VIENNA SKADDEN SAID THE COOPERATIVE ARRANGEMENTS WILL BOLSTER THE LAW FIRM'S INTERNATIONAL LEGAL SERVICES CAMPUS POLITICS A COURT RULED THAT CITY COLLEGE OF NEW YORK VIOLATED THE FREESPEECH RIGHTS OF PROF LEONARD JEFFRIES WHEN IT REMOVED HIM AS BLACK STUDIES DEPARTMENT CHAIRMAN AFTER HE MADE A SPEECH CRITICIZED AS RACIST AND ANTISEMITIC FEDERAL JUDGE KENNETH CONBOY ISSUED THE RULING AFTER A JURY FOUND THAT PROF JEFFRIES WOULDN'T HAVE BEEN REMOVED AS CHAIRMAN IF NOT FOR THE SPEECH THE JURY NOW WILL DETERMINE DAMAGES THE COLLEGE SAID IT WILL APPEAL JONATHAN M MOSES AND EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR TOXIC CLAIMS PORTEND A TIDAL WAVE OF TORTS WSJ JUNE 25 1993 9305120042 YY93 MM06 9306250004 930504 SHIFTING INCENTIVES SOME SEEK TO PROFIT AS WHITE HOUSE MULLS CURBS ON HEALTH COSTS FINDING WAYS TO SKIRT SYSTEM BECOMES A HOT TOPIC CONTROLS COULD BACKFIRE FRAUGHT WITH DIFFICULTIES' BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON MOST OF THE MEDICAL WORLD IS PETRIFIED BY THE PROSPECT THAT PRESIDENT CLINTON MAY IMPOSE TEMPORARY COST CONTROLS AS PART OF HIS OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM GERALD MUSGRAVE IS THRILLED I INTEND TO MAKE A FORTUNE FROM IT BOASTS THE HEAD OF ECONOMICS AMERICA INC AN ANN ARBOR MICH CONSULTING FIRM WHOSE CLIENTS INCLUDE DOCTORS AND HOSPITALS ONE OF THE HOTTEST TOPICS SURE TO EMERGE FROM THE CLINTON PLAN HE SAYS WILL BE HOW TO BEAT THE SYSTEM ONE DILEMMA MR CLINTON FACES IS THAT NO MATTER WHAT TYPE OF COST RESTRAINTS THE GOVERNMENT COMES UP WITH THERE IS ONE THING IT CAN'T POSSIBLY CONTROL PEOPLE'S INGENUITY TO GET AROUND THE SYSTEM MOREOVER HISTORY SHOWS THAT BY DISTORTING THE NORMAL FUNCTIONING OF THE MARKETPLACE CONTROLS CAN STIFLE INNOVATION LEAD TO SHORTAGES REQUIRE AN ENORMOUS BUREAUCRACY TO ENFORCE AND OFTEN BACKFIRE BY CAUSING PRICES TO ZOOM UP ONCE THE LID IS LIFTED COST CONTROLS ARE ONEROUS POLICIES AND THEY'RE UNPLEASANT POLICIES AND THEY'RE FRAUGHT WITH DIFFICULTIES CONCEDES IRA MAGAZINER THE SENIOR CLINTON ADVISER OVERSEEING THE HEALTHREFORM EFFORT YET FACED WITH A RELENTLESS GROWTH IN HEALTH COSTS AND THE REALIZATION THAT THE NEW SYSTEM CAN'T EVEN HOPE TO GENERATE SAVINGS FOR AT LEAST SEVERAL YEARS MOST SIGNS POINT TO A WHITE HOUSE PROPOSAL FOR SOME TYPE OF SHORTTERM CONTROLS LAST FRIDAY HILLARY RODHAM CLINTON TOLD SENATORS THAT THE ADMINISTRATION IS LEANING TOWARD NEGOTIATING VOLUNTARY PRICE RESTRAINTS WITH THE HEALTH INDUSTRY BUT ANY SUCH PROGRAM WOULD INCLUDE FEDERAL AUTHORITY TO IMPOSE A SET OF STRICT RESTRAINTS IF THE INDUSTRY FAILS TO KEEP PRICE INCREASES BELOW THE AGREEDUPON LEVEL CLINTON OFFICIALS STRESSED YESTERDAY THAT NOTHING IS FINAL AND THEY ARE STILL CONTEMPLATING EVERYTHING FROM THE GOVERNMENT SETTING THE PRICES HEALTHCARE PROVIDERS CAN CHARGE TO CAPPING ANNUAL INCREASES IN HEALTH INSURANCE PREMIUMS ABOUT THE ONLY THING THAT APPEARS TO HAVE BEEN RULED OUT SO FAR IS AN OUTANDOUT FREEZE ON MEDICAL PRICES MR CLINTON IS EXPECTED TO SIGN OFF ON HIS HEALTHCARE PLAN LATER THIS MONTH IN CONGRESS ANY FORM OF PRICE CONTROLS IS SURE TO FACE AN UPHILL FIGHT EVEN AMONG MR CLINTON'S FELLOW DEMOCRATS ALREADY CIRCULATING ON CAPITOL HILL IS A CHRONOLOGY FROM A BOOK CALLED FORTY CENTURIES OF WAGE AND PRICE CONTROLS IT SAYS FOR EXAMPLE THAT WHEN ROMAN EMPEROR DIOCLETIAN PRESCRIBED DEATH FOR VIOLATORS OF PRICE CEILINGS IN AD 301 HOARDING RIOTS AND DEATH ENSUE FOUR YEARS LATER DIOCLETIAN ABDICATES HOVERING OVER ANY PROPOSAL IS THE HAUNTING MEMORY OF ECONOMYWIDE WAGEANDPRICE CONTROLS IMPOSED BY PRESIDENT NIXON IN 1971 UNDER THE NIXON CONTROLS MEDICAL PRICES INCHED UP 33 IN 1972 BUT AFTER THE CONTROLS WERE LIFTED MEDICAL PRICES SKYROCKETED 124 IN 1974 IT'S LIKE PUTTING WATER ON TO BOIL AND HOLDING YOUR HAND OVER THE SPOUT SAYS C JACKSON GRAYSON CHAIRMAN OF THE NIXON COMMISSION THAT SET PRICE CONTROLS THEN THERE IS THE PROBLEM THAT PEOPLE SUCH AS MR MUSGRAVE PRESENT ONCE YOU PUT CONTROLS IN THE INCENTIVES SHIFT TO GAMING THE SYSTEM RATHER THAN STRUCTURALLY CHANGING THE SYSTEM SAYS JAMES MCLANE THE EXECUTIVE IN CHARGE OF HEALTH PLANS FOR AETNA LIFE & CASUALTY CO AFTER THE NIXON CONTROLS BEGAN CONTRACTORS TOOK ADVANTAGE OF AN EXEMPTION FOR CUSTOMIZED WORK BY DRILLING HOLES IN PLYWOOD AND THEN FILLING THEM BACK UP TODAY SUCH INGENUITY IS ENHANCED BY COMPUTER TECHNOLOGY HCIA INC A BALTIMORE HEALTHCARE INFORMATION COMPANY BOASTS IN ONE OF ITS MARKETING BROCHURES THAT OPTIMIZATION SOFTWARE CAN HELP HOSPITALS INCREASE THEIR REVENUE AS MUCH AS 35 ON MEDICARE BILLS FOR ALMOST A DECADE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY IN A FORM OF PRICE CONTROLS HAS REIMBURSED HOSPITALS BASED LARGELY ON A PATIENT'S DIAGNOSIS REGARDLESS OF LENGTH OF STAY THE SOFTWARE HELPS TO STEER HOSPITAL MANAGERS TO THE MOST LUCRATIVE WHILE STILL LEGITIMATE DIAGNOSTIC CODES THE IDEA SAYS JD KLEINKE A PRINCIPAL WITH HCIA IS TO ENSURE FAIR REIMBURSEMENT OR BETTER THAN FAIR REIMBURSEMENT FOR EXAMPLE HE SAYS IF A SURGICAL PATIENT DEVELOPS PNEUMONIA WHILE IN THE HOSPITAL A HOSPITAL ADMINISTRATOR HAS A CHANCE TO CHOOSE WHICH REIMBURSEMENT CODE WOULD BRING IN THE MOST MONEY A SURGICAL CODE OR A PNEUMONIA CODE IT'S A QUESTION OF WHICH ONE IS MOST SEVERE THE HOSPITAL WANTS TO MAKE IT AS SEVERE AS POSSIBLE MR KLEINKE SAYS THE SOFTWARE WALKS A MANAGER THROUGH THE VARIOUS DIAGNOSTIC POSSIBILITIES BASED ON A PATIENT'S CHARACTERISTICS IT WILL SAY THIS IS YOUR PROBABLE REIMBURSEMENT WOULD YOU LIKE TO TRY AGAIN' MR KLEINKE EXPLAINS STUART ALTMAN CHAIRMAN OF THE SPECIAL PANEL THAT ADVISES CONGRESS ON THE MEDICARE HOSPITAL PAYMENT SYSTEM SAYS GOVERNMENT COMPUTER WIZARDS USE THEIR OWN PROGRAMS TO TRY TO SEE THROUGH WHAT THE HOSPITALS' SOFTWARE IS DOING I CALL IT STAR WARS II HE SAYS THE BATTLE COULD INTENSIFY WERE THE GOVERNMENT TO EXTEND A MEDICARELIKE COSTCONTROL SYSTEM ACROSS THE ENTIRE HEALTH SECTOR AS THE CLINTON ADMINISTRATION IS CONSIDERING HCIA AND ITS COMPETITORS COULD EASILY DEVELOP PRODUCTS TO HELP HOSPITALS KEEP THEIR COLLECTIONS AS HIGH AS POSSIBLE THAT WOULD BE A BOON FOR OUR COMPANY MR KLEINKE SAYS THE MEDICARE SYSTEM PROVIDES A CASE HISTORY OF THE PROS AND CONS OF MEDICAL PRICE CONTROLS AFTER DIAGNOSIS BECAME THE KEY TO GETTING PAID IN 1983 HOSPITALS SUDDENLY WERE MORE DILIGENT IN CHARTING THE FULL EXTENT OF A PATIENT'S PROBLEMS WHILE FAR FROM FRAUDULENT IN FACT MANY APPLAUD THE IMPROVED RECORD KEEPING THIS CHANGE IN BEHAVIOR COST THE GOVERNMENT THERE IS NO GOOD WAY TO FIGURE OUT HOW TO SET RATES SAYS GRACE CARTER A RAND CORP ANALYST WHO HAS STUDIED HOSPITAL REIMBURSEMENTS UNDER MEDICARE THE FIRST YEAR THE NEW PAYMENT SYSTEM TOOK EFFECT MEDICARE PAYMENTS TO HOSPITALS JUMPED 84 BECAUSE OF HOW THE HOSPITALS CODED FOR REIMBURSEMENT ACCORDING TO MS CARTER OF THAT INCREASE 21 PERCENTAGE POINTS REFLECTED REAL CHANGES AMONG THE PATIENT POPULATION THE LARGER 63 PERCENTAGE POINTS HOWEVER WAS DUE SIMPLY TO CHANGES IN THE WAY HOSPITALS DECIDED TO DO THEIR CODING A PHENOMENON KNOWN AS CODE CREEP MS CARTER SAYS THE GOVERNMENT HAD ANTICIPATED SOME CREEPING CODES BUT ONLY ENOUGH TO ACCOUNT FOR 34 PERCENTAGE POINTS OF THE RISE IN PAYMENTS THE UNDERESTIMATE SHE ADDS COST UNCLE SAM AN EXTRA 2 BILLION ULTIMATELY MEDICARE'S FIXEDFEE SETUP HAS SAVED THE GOVERNMENT TENS OF BILLIONS OF DOLLARS AND MANY EXPERTS NOW CITE THE SYSTEM AS EVIDENCE THAT CONTROLS CAN WORK BUT IT TOOK A COUPLE OF YEARS TO CORRECTLY ADJUST FOR CODE CREEP A LAG THAT THE CLINTON ADMINISTRATION WON'T BE ABLE TO AFFORD BECAUSE OFFICIALS SAY THEY WOULD IMPOSE CONTROLS ONLY FOR TWO OR THREE YEARS AT MOST ONE PROBLEM OF ANY PRICECONTROL SYSTEM IS THAT IT CREATES AN INCENTIVE TO BOOST VOLUME JAMES UKOCKIS A TREASURY ECONOMIST RECALLS A TRIP HE TOOK TO PARIS SOME YEARS AGO WHEN THE FRENCH GOVERNMENT PUT PRICE CONTROLS ON CROISSANTS BAKERS SIMPLY HALVED THE SIZE SO THAT CUSTOMERS HAD TO BUY TWICE AS MANY TO GET THEIR FILL YOU CAN'T REPEAL THE LAWS OF ECONOMICS SUFFICIENTLY ENOUGH TO CONTROL BOTH PRICE AND QUANTITY SAYS MR UKOCKIS WHO HAS ADVISED THE WHITE HOUSE HEALTHCARE TASK FORCE ON THE ISSUE INDEED SOME DOCTORS HAVE ALREADY MASTERED MANEUVERS SIMILAR TO THE BAKERS OF PARIS LAST YEAR MEDICARE DECIDED TO SET PHYSICIANS' FEES FOR THE FIRST TIME INSTEAD OF SIMPLY REIMBURSING DOCTORS ACCORDING TO WHAT THEY CHARGE THE RESULT HAS BEEN A 5 INCREASE IN THE TOTAL NUMBER OF PROCEDURES PERFORMED BY DOCTORS NOT COINCIDENTALLY SOME OF THE SPECIALTIES THAT SUFFERED THE BIGGEST DECLINE IN REIMBURSEMENTS HAVE SHOWN THE BIGGEST INCREASE IN VOLUME OF SERVICES RADIOLOGISTS FOR EXAMPLE SAW A 12 DECLINE IN PAYMENTS PER SERVICE BUT THEY HAVE INCREASED THEIR VOLUME 13 UROLOGISTS' PAYMENTS PER SERVICE DROPPED 5 BUT HAVE RAISED THEIR VOLUME 12 ACCORDING TO THE PHYSICIAN PAYMENT REVIEW COMMISSION UNBUNDLING IS ANOTHER TECHNIQUE THAT DOCTORS USE TO HELP TO MAXIMIZE THEIR REVENUES INSTEAD OF CHARGING A SINGLE FEE TO TREAT A PARTICULAR AILMENT THEY WILL BILL SEPARATELY FOR EACH TEST AND PROCEDURE OR ASK A PATIENT TO RETURN FOR SEVERAL OFFICE VISITS ALTHOUGH MEDICARE HAS DEVISED RULES TO COMBAT THIS PRACTICE IN SOME AREAS SUCH AS SURGERY IT STILL GOES ON IN MANY OTHERS TO DATE THERE HAS BEEN NO INDICATION THAT THE HEALTHCARE INDUSTRY HAS BEEN RAISING PRICES IN ANTICIPATION OF CONTROLS ON THE CONTRARY SOME ANALYSTS SAY HEALTH PROVIDERS ARE HOLDING DOWN PRICES IN HOPES OF ASSUAGING THE ADMINISTRATION DESPITE ALL THE HEADACHES CONTROLS DO HELP TO HOLD DOWN COSTS FOR AT LEAST A TIME AND THAT IS AN ALLURE THAT MAY PROVE TOO STRONG FOR PRESIDENT CLINTON TO RESIST ALLOWING HEALTH SPENDING TO CONTINUE TO GROW AT A DOUBLEDIGIT PACE AND EAT UP THE ECONOMY IS NOT A PLEASANT REALITY MR MAGAZINER SAYS COST CONTROLS HAVE THEIR ADVOCATES RATE SETTING TRIES TO ESTABLISH A FAIR PRICE IT REWARDS THE LOWCOST PROVIDER FOR BEING EFFICIENT AND GIVES AN INCENTIVE FOR THE HIGHCOST PROVIDER TO BECOME MORE EFFICIENT SAYS RICHARD AVERILL WHO HELPED TO DEVELOP THE MEDICARE HOSPITAL REIMBURSEMENT SYSTEM MANY EXPERTS POINT TO MARYLAND AS AN EXAMPLE OF WHERE MEDICAL COST CONTROLS HAVE WORKED WELL SINCE THE EARLY 1970S THE STATE HAS SET THE RATES HOSPITALS CAN CHARGE ALBEIT IN A MORE FLEXIBLE WAY THAN THE NATIONAL MEDICARE SYSTEM WE WANT TO SUBSTITUTE FOR THE MARKET ONLY TO THE EXTENT THERE ARE FAILURES IN THE MARKETPLACE SAYS JOHN COLMERS EXECUTIVE DIRECTOR OF THE MARYLAND HEALTH SERVICES COST REVIEW COMMISSION BUT OTHERS BELIEVE THAT THE STATE'S SUCCESS IN CONTAINING HOSPITAL PRICES HAS BEEN PARTLY THE RESULT OF CERTAIN MEDICAL SERVICES BEING SHIFTED TO UNREGULATED AREAS SUCH AS FREESTANDING OUTPATIENT CLINICS MR COLMERS DISAGREES STILL HE HAS TROUBLE FULLY EXPLAINING WHY IN 1990 WHEN STATE HOSPITAL COSTS WERE SO FAR BELOW THE NATIONAL AVERAGE MARYLAND'S OVERALL PER CAPITA HEALTH SPENDING WAS SLIGHTLY ABOVE THE NATIONAL AVERAGE IN FACT MARYLAND RANKED 18TH OF THE 50 STATES IN PER CAPITA HEALTH EXPENDITURES THAT YEAR ACCORDING TO A GENERAL ACCOUNTING OFFICE REPORT EVEN SUPPORTERS OF THE MARYLAND SYSTEM SAY IT HAS A DOWNSIDE BECAUSE THEIR PROFIT MARGINS ARE HELD RELATIVELY TIGHT HOSPITALS IN THE STATE CAN'T AS EASILY FINANCE NEW FACILITIES AND EQUIPMENT IF YOU'RE INTERESTED IN RENEWING YOUR PLANT GOING OUT AND GETTING THE NEWEST TECHNOLOGY YOU DON'T HAVE THE CASH FLOW SAYS ROBERT CHRENCIK SENIOR VICE PRESIDENT FOR FINANCE AT THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM AWARE OF ALL THE TREMENDOUS DIFFICULTIES WITH CONTROLS ADMINISTRATION ANALYSTS ARE CURRENTLY RUNNING COMPUTER ESTIMATES OF THE COSTS OF IMPOSING AND ENFORCING A SHORTTERM CONTROL SYSTEM IF THE NET SAVINGS ISN'T WORTH IT OFFICIALS SAY THEY WILL RECONSIDER THEIR OPTIONS FOR THE MOMENT THOUGH ADMINISTRATION OFFICIALS ARE BUSY LAYING THE GROUNDWORK FOR THE POSSIBLE INTRODUCTION OF CONTROLS BY GOING OUT OF THEIR WAY TO SAY THAT THEY WON'T REPEAT THE FAILURES OF THE PAST BOTH MR MAGAZINER AND TREASURY SECRETARY LLOYD BENTSEN HAVE PROMISED TO MAKE ANY SYSTEM OF CONTROLS DIFFERENT FROM THAT OF THE NIXON YEARS SEE RELATED LETTER LETTERS TO THE EDITOR DON'T BLAME RADIOLOGIST WSJ JUNE 6 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR HOW HOSPITALS ASSIGN PAYMENT CODES WSJ JUNE 25 1993 9305040134 9306070004 YY93 MM06 9306240175 930624 MARKETING & MEDIA ADVERTISING TESTCRAMMING SCHOOLS SIGN CEASEFIRE BY GARY PUTKA THE TWO LEADING CHAINS OF TESTCRAMMING SCHOOLS ARE UNRIVALED FOR THE ACRIMONY STATISTICAL SIDESWIPES AND RHETORICAL HEADBUTTS AIMED AT EACH OTHER IN THEIR ADVERTISING FIRST HE LOST HIS STUDENTS NOW HE'S LOST HIS MIND IS HOW PRINCETON REVIEW INC WORDS A THINLY VEILED REFERENCE TO KAPLAN EDUCATIONAL CENTER LTD FOUNDER AND CHAIRMAN STANLEY H KAPLAN 74 YEARS OLD IN ITS HIGH SCHOOL AND COLLEGE NEWSPAPER ADS IN ITS NEW CAMPAIGN MEANWHILE KAPLAN IMPLIES THAT PRINCETON REVIEW STAFFERS FORGET TO UPDATE COURSES BECAUSE OF THEIR DRINKING HABITS YO PRINCETON REVIEW WE KNOW YOU GUYS LIKE TO PARTY A LOT MAY WE SUGGEST THAT YOU BRIEFLY DISREGARD YOUR MARGARITAS BUT LAST WEEK IN AN UNUSUAL DEVELOPMENT THAT MAY TONE DOWN THE BARRAGE THE TWO COMPANIES SIGNED A 23PAGE ACCORD IN WHICH THEY AGREED NOT TO LIE ABOUT EACH OTHER OR THEMSELVES IN THEIR ADS AND MARKETING BROCHURES THE PACT ALSO SETS OTHER RULES INCLUDING PROVISIONS FOR ARBITRATING COMPLAINTS ABOUT FALSE ADS IN THE FUTURE JOHN PARHAM WHO HANDLES THE KAPLAN ACCOUNT FOR PARHAM SANTANA A SMALL NEW YORK AGENCY SAYS HE IS UNAWARE OF ANY SIMILAR AGREEMENT IN ADVERTISING PRINCETON REVIEW HANDLES ITS ADS INHOUSE THE AGREEMENT IS TESTIMONY TO THE UNUSUAL IMPORTANCE OF IMAGE AND MARKETING IN TEST COACHING KAPLAN A UNIT OF WASHINGTON POST CO IS HOPING THE AGREEMENT WILL HELP REVERSE THE ONSLAUGHT OF PRINCETON REVIEW WHICH HAS GOBBLED UP MARKET SHARE IN RECENT YEARS BY POSITIONING ITSELF AS THE HIP ANTIESTABLISHMENT WAY TO CRACK BIG EXAMS LIKE THE SCHOLASTIC ASSESSMENT TEST PREVIOUSLY KNOWN AS THE SCHOLASTIC APTITUDE TEST PRINCETON REVIEW SAYS THE AGREEMENT WILL HAVE LITTLE IMPACT ON THE COMPETITIVE BALANCE I THINK PRINCETON REVIEW HAS DONE AN EXCELLENT JOB OF USING STRINGS OF MISLEADING DATA TO CREATE AN IMAGE OF THE BAD BOYS OF TEST PREP SAYS GREGORY RORKE KAPLAN'S PRESIDENT BUT I'M NOT SURE HOW WELL IT'S BEEN TRAVELING OF LATE MR RORKE SAYS THE AGREEMENT IS THE PRODUCT OF A MORE AGGRESSIVE STANCE KAPLAN HAS TAKEN SINCE HE CAME ON BOARD LAST SEPTEMBER HE SAYS KAPLAN WAS READYING A LAWSUIT AGAINST PRINCETON REVIEW FOR FALSE ADVERTISING AND EXTRACTED THE AGREEMENT IN EXCHANGE FOR PROMISING NOT TO SUE BOTH SIDES RELEASED ONE ANOTHER FROM LIABILITY FOR PAST ADS JOHN KATZMAN PRINCETON REVIEW'S PRESIDENT AND FOUNDER ACKNOWLEDGES THAT THE AGREEMENT WAS STRUCK TO AVOID A LAWSUIT WHICH HE SAYS WOULD HAVE BEEN BAD FOR THE INDUSTRY BECAUSE BOTH SIDES WOULD HAVE CAST ASPERSIONS ON EACH OTHER'S EFFECTIVENESS IN RAISING TEST SCORES MR KATZMAN SAYS KAPLAN ALSO SAYS FALSE THINGS ABOUT PRINCETON REVIEW IN ITS ADS AND IS DESPERATE FOR PUBLICITY BECAUSE OF ITS SALES STAGNATION AND LOSSES THE WASHINGTON POST UNIT WHICH MAINLY CONSISTS OF KAPLAN REPORTED A 61 MILLION OPERATING LOSS LAST YEAR MR RORKE CONCEDES SALES WERE FLAT AT ABOUT 80 MILLION IN 1992 MR KATZMAN SAYS PRINCETON REVIEW'S SALES INCLUDING FRANCHISES WERE UP 25 TO 31 MILLION THE AGREEMENT ISN'T LIKELY TO PUT AN END TO ALL NEGATIVE STATEMENTS THE TWO FIRMS AIM AT ONE ANOTHER THERE HASN'T BEEN A NEW IDEA AT KAPLAN IN 50 YEARS MR KATZMAN INSISTS THEY'RE RIPPING OFF OUR MATERIALS RIPPING OFF OUR TRADEMARKS AND RIPPING OFF OUR SLOGANS ON BALANCE THE AGREEMENT PROBABLY FAVORS KAPLAN MR KATZMAN CONCEDES THAT PRINCETON REVIEW WILL BE FORCED TO GIVE UP A DRAMATIC AD WITH A BAR CHART SHOWING THAT SCORE GAINS FOR ITS STUDENTS REACH 110160 POINTS ON THE 1600POINT SAT FAR AHEAD OF KAPLAN'S DEPICTED 489 POINTS KAPLAN SAYS THE CLAIMS ARE BASED ON TENDENTIOUS ANALYSIS OF STUDIES MR KATZMAN SAYS HE WOULD HAVE HAD TO DROP THE BAR CHART SOON ANYWAY BECAUSE OF CHANGES IN THE SAT AS MR RORKE SEES IT THE AGREEMENT ALSO FAVORS KAPLAN BECAUSE IT FORCES PRINCETON REVIEW TO DROP ANY REFERENCES TO A 1979 FEDERAL TRADE COMMISSION ASSESSMENT OF KAPLAN SCORE GAINS ON WHICH PART OF THE BAR CHART WAS BASED THE PACT ALSO FORBIDS THE COMPANIES FROM CLAIMING SCORE INCREASES WITHOUT PROVIDING BACKUP DATA WHICH KAPLAN ALLEGES THAT PRINCETON REVIEW DOES IN TOUTING ITS LAW SCHOOL ADMISSION TEST MEDICAL SCHOOL ADMISSION TEST AND GRADUATE RECORD EXAMINATION IN A RECENT AD IN THE NEW YORK TIMES HOWEVER KAPLAN DOES VERY NEARLY THE SAME THING SAYING IT'S CONFIDENT GRE SCORES WILL GO UP 150 POINTS AND LSAT SCORES BY SIX POINTS OR YOUR MONEY BACK NO STUDY CITATIONS ARE GIVEN FOR THE SCORE INCREASES KAPLAN SAYS IT COULD RUN THE AD AGAIN DESPITE THE AGREEMENT MR KATZMAN SAYS WE PLAN TO GO AFTER THEM UNDER THIS AGREEMENT IF THEY RUN THE AD AGAIN BECAUSE IT IMPLIES PROVEN INCREASES MR KATZMAN SEES THE KAPLAN OFFER AS MIMICRY OF PRINCETON REVIEW'S GUARANTEED SCORE INCREASE OF 100 POINTS ON THE SAT IF THAT GAIN ISN'T ATTAINED A STUDENT IS GIVEN FREE COACHING FOR A NEW TAKING OF THE TEST THE PLEDGE HAS BEEN AN IMPORTANT PART OF PRINCETON REVIEW'S SUCCESS IT CLAIMS 30000 SAT STUDENTS A YEAR VS KAPLAN'S 20000 KAPLAN SAYS THE TWO SCHOOLS ARE EVEN AT 20000 AND IT SEES FAR MORE STUDENTS FOR GRADUATE TESTS PRINCETON REVIEW HAS ALSO IMPLIED IN ITS ADVERTISING THAT KAPLAN WON'T GIVE HELP OUTSIDE THE CLASSROOM EXCEPT WITH AUDIO TAPES KAPLAN SAYS THIS IS UNTRUE AND THE AGREEMENT BANS SUCH REFERENCES IN THE FUTURE KAPLAN WILL BE BANNED FROM SAYING THAT PRINCETON REVIEW RELIES PRIMARILY ON TRICKS OR GIMMICKS IN ITS COURSES A CLAIM THAT MR KATZMAN SAYS HAS BEEN MADE FREQUENTLY IN THE PAST AMMIRATI & PURIS IS EXPANDING OUTSIDE OF NEW YORK OPENING A FULLSERVICE OFFICE IN TORONTO IN SEPTEMBER TOM NELSON 37 YEARS OLD WAS NAMED CHAIRMAN AND CREATIVE DIRECTOR OF THE NEW OUTPOST MR NELSON A SENIOR VICE PRESIDENT AND ASSOCIATE CREATIVE DIRECTOR AT THE AGENCY'S NEW YORK HEADQUARTERS HAS CREATED ADS FOR CLIENT UNITED PARCEL SERVICE AND BMW OF NORTH AMERICA A FORMER CLIENT AMMIRATI WITH ESTIMATED BILLINGS OF 325 MILLION ALSO WORKS FOR MASTERCARD INTERNATIONAL AND AETNA LIFE & CASUALTY AMMIRATI RESIGNED FROM THE BIG BMW ACCOUNT LAST YEAR BUT DIDN'T DISMANTLE THE ACCOUNT TEAM EVER SINCE RIVALS HAVE BEEN WATCHING CLOSELY TO SEE IF AMMIRATI IS ON THE PROWL FOR ANOTHER BIG AUTO CLIENT RECENTLY THE AGENCY DROPPED OUT OF THE PITCH FOR AUDI OF AMERICA'S 30 MILLION ACCOUNT EARLIER THIS WEEK IT UNVEILED PLANS TO EXPAND ITS DIRECTMARKETING OPERATIONS MARTIN PURIS PRESIDENT AND CHIEF EXECUTIVE OFFICER DISMISSED THE NOTION THAT THE AGENCY IS SETTING UP TO HANDLE A BIG ACCOUNT THE NEW TORONTO OUTPOST IS MEANT TO SERVICE THE CANADIAN BUSINESSES OF COMPAQ COMPUTER AND UPS HE SAID THE OBJECT IS TO SERVICE EXISTING CLIENTS FIRST HE SAID GENERAL MILLS INC MINNEAPOLIS SAID IT SETTLED ITS TRADEMARK DISPARAGEMENT LAWSUIT AGAINST A CALIFORNIA COMPETITOR THAT CALLED THE COMPANY'S RED LOBSTER SEAFOOD CHAIN RED LOSER TERMS INCLUDE WITHDRAWAL OF TELEVISION COMMERCIALS THAT DROPPED THE LETTERS B AND T FROM LOBSTER A LETTER OF APOLOGY FROM RESTAURANT ENTERPRISES GROUP INC OF IRVINE CALIF AND UNSPECIFIED COMPENSATION GENERAL MILLS SAID EVANS HARDY & YOUNG OF SANTA BARBARA CALIF CREATED THE SPOTS AFTER ADS BY RESTAURANT ENTERPRISES' COCO'S RESTAURANTS BEGAN APPEARING IN SEVERAL WESTERN MARKETS GENERAL MILLS OBTAINED A TEMPORARY RESTRAINING ORDER HALTING FURTHER AIRINGS THE ADS HAD REFERRED TO RESEARCH IN WHICH CONSUMERS SAID THEY PREFERRED COCO'S SEAFOOD ACCOUNT GOODBY BERLIN & SILVERSTEIN OF SAN FRANCISCO WON THE 23 MILLION ACCOUNT OF THE CALIFORNIA MILK PROCESSOR BOARD BESTING THREE OTHER SAN FRANCISCO CONTENDERS HAL RINEY & PARTNERS GOLDBERG MOSER O'NEILL AND THE WEST COAST OPERATIONS OF FOOTE CONE & BELDING COMMUNICATIONS WHO'S NEWS WELLS RICH GREENE BDDP OF NEW YORK NAMED JED BERNSTEIN A SENIOR VICE PRESIDENT AND ACCOUNT GROUP HEAD ON ITS BIG INTERNATIONAL BUSINESS MACHINES ACCOUNT A NEW POSITION THE AGENCY SAID MR BERNSTEIN 38 HAD BEEN A SENIOR VICE PRESIDENT DIRECTOR OF NEW BUSINESS AT ALLY & GARGANO OF NEW YORK 9306240173 930624 OUTLOOK FOR DIGITAL MICROWAVE SAN JOSE CALIF DIGITAL MICROWAVE CORP A MAKER OF MICROWAVE RADIOS AND OTHER COMMUNICATIONS PRODUCTS SAID REVENUE FOR ITS FIRST FISCAL QUARTER ENDING JUNE 30 WILL BE LOWER THAN THE 28 MILLION POSTED IN ITS FOURTH QUARTER DEPENDING ON SHIPMENTS IN THE QUARTER'S REMAINING DAYS IT ADDED IT MAY REPORT A LOSS THE COMPANY BLAMED THE PROBLEMS ON LOWERTHANEXPECTED FACTORY SHIPMENTS OF NEW PRODUCTS CUSTOMER CHANGES AND RESCHEDULED DELIVERIES INTO THE NEXT QUARTER IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY DIGITAL MICROWAVE STOCK CLOSED AT 12 DOWN 250 OR 17 9306240172 930624 FINANCING BUSINESS NATIONAL GYPSUM CO NATIONAL GYPSUM CO CHARLOTTE NC STANDARD & POOR'S CORP SAID IT ASSIGNED A SINGLEBPLUS RATING TO THIS BUILDING CONSTRUCTION AND REMODELING CONCERN'S 100 MILLION OF 10 SENIOR UNSECURED NOTES DUE 2003 THE COMPANY IS ISSUING THE NOTES ON ITS EMERGENCE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS EXPECTED WITHIN THE NEXT FEW WEEKS THE COMPANY'S IMPLIED SENIOR DEBT RATING IS DOUBLEB THE RATINGS AGENCY SAID 9306240171 930624 INDUSTRY FOCUS COMMERCIAL FINANCE FIRMS HAVE NEW RIVALS IN BANKS REALM OF ASSETBASED LENDING OFFERS PROMISE OF RICH PROFITS TO COMPETITORS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL IS THE PARTY OVER FOR COMMERCIAL FINANCE COMPANIES SOME RACKED UP DOUBLEDIGIT GROWTH IN LOANS OVER THE PAST SEVERAL YEARS AS MANY COMMERCIAL BANKS HUNKERED DOWN TO STRENGTHEN CAPITAL REQUIREMENTS NOW WITH CLEANEDUP BALANCE SHEETS AND IMPROVED PROFITABILITY BANKS HAVE BEGUN AGGRESSIVELY WOOING THE FINANCE COMPANIES' MIDDLEMARKET CUSTOMERS COMPANIES WITH ANNUAL SALES OF 1 MILLION TO 500 MILLION MOREOVER THE STEPPEDUP COMPETITION COMES AT A TIME WHEN LOAN DEMAND IS GROWING ONLY SLOWLY IT'S AN AWFUL LOT OF MONEY CHASING DEAL FLOW SAYS FRANK MEDEIROS A GROUP PRESIDENT FOR SANWA BUSINESS CREDIT CORP A CHICAGO UNIT OF JAPAN'S SANWA BANK LTD MR MEDEIROS IS ALSO PRESIDENT OF THE COMMERCIAL FINANCE ASSOCIATION A TRADE GROUP FOR BORROWERS THE HEIGHTENED COMPETITION IS GOOD NEWS BECAUSE IT MAKES CREDIT MORE AVAILABLE AND LENDING TERMS LOOSER BUT FOR THE FINANCE COMPANIES THE BANKS' INVASION OF THEIR TURF MEANS LESS BUSINESS AND POTENTIALLY SMALLER PROFIT MARGINS UNLIKE BANKS WHICH LEND PRIMARILY ON THE STRENGTH OF A COMPANY'S CASHFLOW STATEMENT COMMERCIAL FINANCE COMPANIES GENERALLY MAKE LOANS SECURED BY ACCOUNTS RECEIVABLE INVENTORY EQUIPMENT OR OTHER PROPERTY SOCALLED ASSETBASED LOANS BANKS HAVE PREFERRED LENDING BASED ON CASH FLOW BECAUSE THAT MEANS DEALING WITH THE MOST CREDITWORTHY CUSTOMERS AS A RESULT COMPANIES THAT ARE LESS CREDITWORTHY HAVE HAD TO RELY ON COMMERCIAL FINANCE COMPANIES WHICH GENERALLY CHARGE MORE THAN BANKS ANOTHER REASON BANKS HAVE PREFERRED CASHFLOW LENDING IS THAT THEY HAVE BEEN UNWILLING TO DEVELOP THE NUTSANDBOLTS KNOWLEDGE OF OTHER INDUSTRIES THAT IS ESSENTIAL TO ASSETBASED LENDING IT'S ESSENTIAL BECAUSE THAT IS WHAT LETS A LENDER PROPERLY VALUE THE COLLATERAL IN CASE THE COMPANY GETS IN TROUBLE BUT SOMETHING HAS HAPPENED AT THE BANKS THEY'VE REALIZED THAT ASSETBASED LENDING CAN BE A VERY GOOD BUSINESS AT YEAREND 1992 FINANCE COMPANIES' SHARE OF COMMERCIAL AND INDUSTRIAL LENDING WAS 310 BILLION OR 34 UP FROM 30 IN 1989 ACCORDING TO MERCER MANAGEMENT CONSULTING INC A BUSINESS CONSULTING FIRM ASSETBASED LENDERS PROBABLY HAD BETTER OPPORTUNITIES AND MARGINS IN THE LAST THREE YEARS THAN THEY NOW DO ADDS ALBERT GAMPER JR PRESIDENT OF CIT GROUP HOLDINGS INC A LIVINGSTON NJ COMMERCIAL FINANCE COMPANY WHOSE 1332 BILLION IN ASSETS MAKES IT ONE OF THE LARGEST CIT GROUP HOLDINGS IS A UNIT OF JAPAN'S DAIICHI KANGYO BANK AND CHEMICAL BANKING CORP TO BE SURE THE RECESSION THE SLUGGISH RECOVERY AND POOR MANAGEMENT HAVE LEFT CASUALTIES IN THE COMMERCIAL FINANCE FIELD WESTINGHOUSE ELECTRIC CORP CONTINUES TO LIQUIDATE ITS FINANCE UNIT WESTINGHOUSE CREDIT CORP THE UNIT WAS HAMMERED BY THE COLLAPSE OF THE COMMERCIAL REAL ESTATE MARKET AND HIGHLY LEVERAGED CORPORATE FINANCE DEALS GONE SOUR NEVERTHELESS THE AVERAGE COMMERCIAL FINANCE COMPANY LAST YEAR SHOWED 5 TO 10 GROWTH IN ITS LOAN PORTFOLIO INDUSTRY ANALYSTS SAY AT THE SAME TIME WRITEOFFS REMAINED LOW MANY FINANCE COMPANIES HAVE FLOURISHED BECAUSE THEY STUCK TO THEIR OWN BACKYARDS WITH ESTABLISHED CREDIT POLICIES SAYS RAYMOND MILLER A STANDARD & POOR'S CORP DIRECTOR BANKS HAVE STEPPED IN AND OUT OF ASSETBASED LENDING OVER THE DECADES GENERALLY ESCHEWING IT ASSETBASED LENDING EXPLAINS CHARLES WENDEL A MERCER MANAGEMENT VICE PRESIDENT CARRIES A BLUECOLLAR ROLLEDUP SLEEVES IMAGE AND REQUIRES CONSTANT MONITORING SUCCESSFUL ASSETBASED LENDERS ARE NOT SHY ABOUT LIQUIDATING BECAUSE THEY KNOW HOW TO MANAGE AND SELL ASSETS SAYS NANCY STROKER AN ANALYST WITH FITCH INVESTORS SERVICES BUT ASSETBASED LENDING TO THE MIDDLE MARKET DOES HAVE ITS ATTRACTION IF DONE RIGHT IT CAN GENERATE CONSISTENTLY HIGHER SPREADS AND A LOT OF MONITORING AND OTHER FEES THAT DON'T OCCUR IN UNSECURED LENDING MR WENDEL SAYS TYPICAL ASSETBASED SPREADS TODAY ARE 2 TO 3 ABOVE THE BANKS' BENCHMARK PRIME RATE IN RETRENCHING EARLIER BANKS GAVE UP BOTH SECURED AND UNSECURED MIDDLEMARKET CUSTOMERS ANALYSTS AND COMMERCIAL FINANCE COMPANIES SAY IN COURTING THEM AGAIN SOME BANKS SEEK OUT THE MOST CREDITWORTHY FOR PARTIALLY SECURED AND UNSECURED LOANS BUT MANY BANKS SEEING THE PROFITS TO BE EARNED ARE BEEFING UP ASSETBASED LENDING UNITS TO COMPETE WITH THE FINANCE COMPANIES PRECISELY ON THEIR TERMS THE MIDDLE MARKET WAS IGNORED FOR A WHILE BY BANKS BUT THE PENDULUM HAS SWUNG SAYS DONALD B CLARK A VICE PRESIDENT AT HEADHUNTING FIRM PAUL R RAY & CO WHO HAS FILLED FOUR ASSETBASED LENDING JOBS IN THE MIDWEST RECENTLY INDEED EARLIER THIS MONTH CONGRESS FINANCIAL CORP OF NEW YORK ONE OF THE MOST ESTABLISHED OF THE ASSETBASED LENDERS LOST A 4 MILLION DEAL TO BE SECURED BY EQUIPMENT APPRAISED AT 5 MILLION ANOTHER LENDER WANTED TO BUY THAT PIECE OF BUSINESS SO THEY OFFERED A 7 MILLION LOAN BARRY KASTNER A CONGRESS SENIOR VICE PRESIDENT SAYS ON SOMETHING LIKE THAT WE WISH THEM WELL AT CONGRESS A UNIT OF CORESTATES FINANCIAL CORP CHAIRMAN ROBERT GOLDMAN SAYS HIS TOTAL LOAN PORTFOLIO WILL GROW ANOTHER 18 THIS YEAR BUT HE'S BRACING FOR A SLOWDOWN IN 1994 TO 10 GROWTH CONGRESS NOW HAS 13 BILLION IN ASSETBASED LOAN RECEIVABLES BANKS AGGRESSIVELY PROMOTING ASSETBASED LENDING OF LATE INCLUDE BANKAMERICA CORP'S BANK OF AMERICA UNIT BASED IN SAN FRANCISCO IT HAS AN INHOUSE UNIT WOOING THE STRONGEST BUSINESSES WITH SECURED AND PARTIALLY SECURED DEALS SAYS RONALD TWEEDY A BANK OF AMERICA SENIOR VICE PRESIDENT MEANWHILE BANKAMERICA BUSINESS CREDIT AN ASSETBASED LENDING SUBSIDIARY INHERITED THROUGH ITS MERGER LAST YEAR WITH SECURITY PACIFIC CORP HAS GENERATED 246 MILLION WORTH OF MIDDLEMARKET LOANS OVER THE PAST EIGHT MONTHS SAYS LINDA CHESNUT A BANKAMERICA BUSINESS CREDIT SENIOR VICE PRESIDENT SUPERREGIONAL NATIONSBANK CORP OF CHARLOTTE NC ALSO HAS STEPPED UP ASSETBANK LENDING ITS BUSINESS CREDIT DIVISION OPENED THREE NEW LENDING OFFICES OVER THE LAST YEAR BRINGING THE TOTAL TO A DOZEN NATIONWIDE AND INCREASED ITS ASSETBASED LOAN PORTFOLIO 15 TO 14 BILLION SAYS LARRY STEPHENS A NATIONSBANK EXECUTIVE VICE PRESIDENT ESTABLISHED MIDDLEMARKET ASSETBASED LENDERS ARE ALSO GETTING SQUEEZED BY NONBANKERS GE CAPITAL CORP A STAMFORD CONN UNIT OF GENERAL ELECTRIC CO CREATED AN ASSETBASED LENDING UNIT LAST SEPTEMBER THE UNIT'S GOAL IS 1 BILLION IN RECEIVABLES BY YEAR END SAYS MICHAEL GAUDINO A GE CAPITAL VICE PRESIDENT HE SAYS THE UNIT IS ABOUT HALFWAY THERE 9306240170 930624 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK FRANK S SOWINSKI 37 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF MARKETING AND ANALYTICAL SERVICES AT DUN & BRADSTREET INFORMATION SERVICES A UNIT OF THIS BUSINESS INFORMATION SERVICES CONCERN MR SOWINSKI WHOSE POSITION IS NEWLY CREATED HAD BEEN SENIOR VICE PRESIDENT OF FINANCE POLICY AND PLANNING 9306240169 930624 FINANCING BUSINESS INTERCO INC INTERCO INC ST LOUIS MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON ABOUT 265 MILLION OF THE COMPANY'S SENIOR DEBT THE RATING CONCERN BOOSTED ITS RATINGS ON INTERCO SERIES A B AND C SENIOR SECURED DEBT TO BA3 FROM B2 IT CITED INTERCO'S CONTINUING IMPROVEMENT IN OPERATING PERFORMANCE THE GOOD MARKET POSITION OF THE FURNITURE DIVISIONS AND THE EXPECTED BENEFITS OF A MODERATE CYCLICAL UPTURN IN THE FURNITURE BUSINESS INTERCO ISSUED THE DEBT AS PART OF A RESTRUCTURING BY WHICH IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION IN 1992 INTERCO HAS TWO REMAINING BUSINESS SEGMENTSITS FOOTWEAR AND FURNITURE LINES 9306240168 930624 BUSINESS BRIEF BURLINGTON NORTHERN INC RAILROAD AND UNION AGREE ON CONSOLIDATION OF SERVICES BURLINGTON NORTHERN RAILROAD AND THE TRANSPORTATION COMMUNICATIONS UNION SIGNED AN AGREEMENT ENABLING THE RAILROAD TO CONSOLIDATE YARD FREIGHT AND AGENCY FUNCTIONS INTO A SINGLE CUSTOMER SUPPORT CENTER THE RAILROAD SAID IT EXPECTS CONSOLIDATION TO BE COMPLETED BY THE END OF 1995 THE NEW CENTER IN FORT WORTH TEXAS WOULD HANDLE CAR ORDERING BILLING CAR TRACING SWITCHING REQUESTS AND CUSTOMER NOTIFICATION 24 HOURS A DAY THE FIRST PHASE OF THE AGREEMENT WOULD INVOLVE 150 EMPLOYEES HANDLING CUSTOMER FREIGHT AND YARD OFFICE SERVICES THE AGREEMENT WITH THE LABOR UNION INCLUDES PROVISIONS FOR RELOCATION BENEFITS CLASSROOM TRAINING AND SPECIALISTS TO HANDLE THE TRANSITION THE RAILROAD IS A UNIT OF FORT WORTHBASED BURLINGTON NORTHERN INC 9306240167 930624 BUSINESS BRIEF SITHE ENERGIES INC INVESTORS PUSH DOWN PRICE OF STOCK SET IN INITIAL OFFER A SCALEDDOWN INITIAL PUBLIC OFFERING BY INDEPENDENT POWER PRODUCER SITHE ENERGIES INC WAS PRICED AT 13 A SHARE AND INVESTORS PUSHED THE SHARES DOWN SLIGHTLY TO 12625 A SHARE IN ACTIVE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SITHE OFFERED 114 MILLION SHARES 96 MILLION OF THEM IN THE US SITHE WHICH DEVELOPS OWNS AND OPERATES COGENERATION AND HYDROELECTRIC POWER PLANTS HAD FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 12 MILLION SHARES AT 15 TO 17 A SHARE THE MARKET IS THE MARKET SITHE OFFICIALS SAID IN RESPONSE TO THE LOWER OFFERING PRICE THE COMPANY OFFERED FEWER SHARES BECAUSE WILLIAM KRIEGEL CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT DIDN'T SELL ANY SHARES HE HAD FILED TO SELL 600000 SHARES NET PROCEEDS FROM THE OFFERING WILL BE USED TO RETIRE DEBT OWED TO CIE GENERALE DES EAUX A FRENCH WATER DISTRIBUTION COMPANY THAT HOLDS A MAJORITY STAKE IN SITHE 9306240166 930624 COUNTERPOINT TO CUT SPENDING FREEZE IMMIGRATION BY DANIEL JAMES THE BATTLE OF THE DEFICIT GOES ON WITH NO SIGN OF A LETUP BUT PART OF THE SOLUTION LIES UNDER OUR VERY NOSES ALL CONGRESS NEED DO TO CUT SPENDING IS CUT IMMIGRATION IMMIGRANTS RESIDING IN THE US COST US TAXPAYERS MORE THAN 45 BILLION ANNUALLY ACCORDING TO THE COSTS OF IMMIGRATION A JUSTRELEASED STUDY BY DONALD L HUDDLE PROFESSOR EMERITUS OF ECONOMICS AT RICE UNIVERSITY IN HOUSTON MR HUDDLE PROJECTS THAT IN THE 19932002 PERIOD THE NET COST TO THE TAXPAYERS OF ALL IMMIGRANTS IN THE US WILL TOTAL OVER 450 BILLION NEARLY THE TOTAL OF PRESIDENT CLINTON'S FIVEYEAR DEFICITREDUCTION GOALAT THE PRESENT RATE OF IMMIGRATION INDEED MR HUDDLE'S CALCULATION IS CONSERVATIVE AS HE HIMSELF NOTES FOR IT IS PREDICATED ON AN ANNUAL INFLUX OF 810000 LEGAL AND 300000 ILLEGAL IMMIGRANTS 11 MILLION ALTOGETHER TULANE UNIVERSITY DEMOGRAPHER LEON BOUVIER PROJECTS AN INFLOW OF AS MANY AS 15 MILLION LEGAL AND ILLEGAL IMMIGRANTS YEARLY IN THE '90S PROF HUDDLE'S STUDY THE MOST COMPLETE OF ITS KIND COVERED A TOTAL OF 181 MILLION IMMIGRANTS PRESENT IN THE US IN 1992 THEY INCLUDED BOTH LEGAL AND ILLEGAL IMMIGRANTS AS WELL AS ILLEGALS GRANTED AMNESTY UNDER A 1986 LAW REFUGEES AND THOSE GRANTED ASYLUM THE STUDY EXAMINED COSTS AT ALL LEVELS OF GOVERNMENT THAT YEAR ABOVE AND BEYOND THE TAXES THEY PAID THEY ARE IN SHORT NET COSTS EDUCATION FOR ALL IMMIGRANTS REPRESENTED THE BIGGEST COSTS PRIMARY AND SECONDARY EDUCATION COST 128 BILLION IN 1992 PUBLIC HIGHER EDUCATION 24 BILLION ENGLISH AS A SECOND LANGUAGE AND BILINGUAL EDUCATION 28 BILLION ILLEGAL IMMIGRANTS MR HUDDLE FOUND ARE GETTING A FREE RIDE THANKS TO SUCH PROGRAMS AS AID TO FAMILIES WITH DEPENDENT CHILDREN AFDC INCREASING NUMBERS OF ILLEGALS BEAR CHILDREN ON US SOIL THESE NEWBORNS AUTOMATICALLY BECOME US CITIZENS ENTITLED TO FOOD STAMPS AND THE LIKE COLLECTED BY THEIR PARENTS OR GUARDIANS AFDC FOR ILLEGALS COST US 820 MILLION IN 1992 OTHER STUDIES HAVE NOTED THE UNUSUALLY LARGE PERCENTAGE OF CHILDREN BORN IN THE US TO ILLEGALS LOS ANGELES COUNTY'S ADMINISTRATIVE OFFICE REPORTS FOR EXAMPLE THAT IN FISCAL 199091 626 OF ALL BIRTHS IN THE COUNTY 35912 OUT OF A TOTAL OF 57366 WERE UNDOCUMENTED ALIEN BIRTHS THEIR NET COST TO THE COUNTY WAS 30 MILLION ALL TOLD THE SINGLEYEAR 1992 COST OF ALL PUBLIC SERVICES EDUCATION CRIMINAL JUSTICE AND CORRECTION PROGRAMS FOR THE 48 MILLION ILLEGALS COVERED BY THE HUDDLE STUDY WAS 7751 MILLION MR HUDDLE USED 22 SEPARATE COST CATEGORIES TO ARRIVE AT HIS ESTIMATES OF LEGAL IMMIGRATION COSTS RANGING FROM PRIMARY/SECONDARY PUBLIC EDUCATION TO CRIMINAL JUSTICE/CORRECTIONS AND 14 CATEGORIES FOR ILLEGALS WHO ARE INELIGIBLE FOR CERTAIN PROGRAMS HIS SOURCES WERE BOTH OFFICIAL DOCUMENTS AND OTHER STUDIES MADE BY DEMOGRAPHIC AND IMMIGRATION EXPERTS HE FACTORED IN THE AMOUNT OF TAXES INCOME PROPERTY SALES AND SO ON PAID BY IMMIGRANTS BASED ON OFFICIAL STUDIES BY THE STATE OF CALIFORNIA AND FEDERAL SOURCES SUCH AS THE COMMERCE DEPARTMENT'S STATISTICAL ABSTRACT AND REPORTS ON INDIVIDUAL TAX RETURNS ALL THIS ENABLED HIM TO CALCULATE THAT TAXES PAID BY THE FLOW OF LEGAL IMMIGRANTS IN FISCAL 1992 WAS 7207 MILLION SUBTRACTING THAT AMOUNT FROM THE COSTS OF 22 PROGRAMS USED BY THE 1992 FLOW WHICH TOTALED 258 BILLION RESULTED IN A NET COST OF 186 BILLION INFINITELY MORE DIFFICULT TO MEASURE WAS THE COST OF DISPLACEMENT OF US WORKERS BY IMMIGRANTS IN THE FIRST PLACE DO IMMIGRANTS TAKE JOBS FROM AMERICANS THAT QUESTION HAS BEEN BITTERLY DEBATED FOR YEARS POWERFUL VOICES ARGUE THAT THE MILLIONS OF NEWCOMERS WHO ARRIVE HERE ANNUALLY MAKE A NET POSITIVE CONTRIBUTION TO THE ECONOMY HENCE WE NEED MORE OF THEM JULIAN SIMON AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF MARYLAND CONTENDS THAT GENERAL IMMIGRATION CAUSES LITTLE OR NO UNEMPLOYMENT EVEN AMONG GROUPS MOST LIKELY TO BE DISPLACED' BY THEM IE BLACKS AND HISPANICS AS HE WROTE IN HIS BOOK THE ECONOMIC CONSEQUENCES OF IMMIGRATION ON THE CONTRARY HE ADDS IMMIGRANTS ACTUALLY MAKE JOBS ECHOING HIS VIEW THE WALL STREET JOURNAL GOES SO FAR AS TO URGE THAT WE ADOPT A FIVEWORD CONSTITUTIONAL AMENDMENT THERE SHALL BE OPEN BORDERS BUT MR HUDDLE'S FINDINGS CONTRADICT THEIR ARGUMENTS HE ANALYZED LABOR DISPLACEMENT COSTS AS A SEPARATE CATEGORY DEFINING SUCH DISPLACEMENT BROADLY AS THE NUMBER OF AMERICAN WORKERS WHO ARE NOT ABLE TO WORK AS A CONSEQUENCE OF THE PRESENCE OF 100 IMMIGRANT WORKERS BASING HIS STUDY ON THREE FIELD SURVEYS HE HAD MADE PREVIOUSLY 1983 1985 AND 1990 HE FOUND A NET COEFFICIENT OF DISPLACEMENT OF 25 FOR UNSKILLED NONFARM WORKERS UNDER PRESENT ECONOMIC CONDITIONS INTRICATE AND MINUTE CALCULATIONS LED HIM TO ESTIMATE THAT MORE THAN TWO MILLION AMERICAN WORKERS WERE DISPLACED BY 1992 BY THE 18 MILLION LEGAL ILLEGAL AND AMNESTIED IMMIGRANTS IN THIS COUNTRY THE COSTS OF HIGH RATES OF LABOR DISPLACEMENT ARE GREAT FOR AMERICANS DISPLACED IN 1992 BY LEGAL ILLEGAL AND AMNESTIED ILLEGAL IMMIGRANTS THE COSTS TO TAXPAYERS IN TERMS OF PUBLIC ASSISTANCE MEDICAID AFDC FOOD STAMPS UNEMPLOYMENT COMPENSATION AND GENERAL ASSISTANCE TOTALED 157 BILLION THAT FIGURE EXCLUDED ALL PRIVATE COSTS SUCH AS WAGES AND FRINGE BENEFITS TO THE DISPLACED WORKERS IRONICALLY US ORGANIZED LABOR WHILE FIGHTING THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT CHIEFLY ON THE GROUND THAT IT WILL EXPORT JOBS TO MEXICO IGNORES THIS GRIMMER REALITY OUR IMMIGRATION POLICY HAS LED TO THE IMPORTATION OF TWO MILLION WORKERS WHO HAVE DISPLACED AMERICANS THE CULPRIT IS NOT MEXICO OF COURSE BUT THE IMMIGRATION ACT OF 1990 WHICH INCREASED LEGAL IMMIGRATION BY 40 AND STIMULATED RECORD ILLEGAL IMMIGRATION IF CONGRESS IS SERIOUS ABOUT MAKING SPENDING CUTS IT CAN BEGIN BY REPEALING THE 1990 IMMIGRATION LAW AND DECLARING A MORATORIUM ON ALL IMMIGRATION UNTIL AT LEAST WE HAVE PUT OUR FINANCES IN ORDER SPOUSES AND MINOR CHILDREN OF LEGAL IMMIGRANTS NOW RESIDING HERE SHOULD BE EXCEPTED THAT WOULD SAVE US 30 BILLION INCLUDING THE COST OF CURRENTLY DEPENDENT AND FUTURE ILLEGAL IMMIGRANTS OF THE MORE THAN 45 BILLION ALL IMMIGRANTS NOW COST US ANNUALLY BUT CONGRESS WILL HAVE TO ACT NOW WHILE BUDGET NEGOTIATIONS ARE IN PROGRESS THE PRESIDENT SHOULD CALL BOTH HOUSES OF CONGRESS INTO SPECIAL SESSION TO FREEZE ALL IMMIGRATION FORTHWITH MR JAMES WHO WRITES FREQUENTLY ON IMMIGRATION AND RELATED ISSUES IS THE AUTHOR OF A 1991 STUDY ILLEGAL IMMIGRATION AN UNFOLDING CRISIS UNIVERSITY PRESS OF AMERICA 9306240165 930624 WHO'S NEWS COMPUTER TASK GROUP INC COMPUTER TASK GROUP INC BUFFALO NY GALE S FITZGERALD SENIOR VICE PRESIDENT SINCE 1991 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS INFORMATION TECHNOLOGY CONSULTING CONCERN HER APPOINTMENT TAKES EFFECT JULY 1 MS FITZGERALD 42 YEARS OLD SUCCEEDS JOHN P COURTNEY 56 WHO WILL RETIRE MR COURTNEY WHO IS ALSO A DIRECTOR OF THE COMPANY WILL GIVE UP HIS BOARD SEAT AT THE JULY 22 BOARD MEETING MS FITZGERALD WILL JOIN THE BOARD AT THAT TIME 9306240164 930624 POLITICS & POLICY US SOLDIER IS CHARGED IN TORTURE OF 2 SOMALIS MOGADISHU SOMALIA A US SOLDIER WAS CHARGED WITH AGGRAVATED ASSAULT AND UNLAWFUL DETENTION FOR ALLEGEDLY TORTURING TWO SOMALIS WITH ELECTRIC SHOCKS ARMY STAFF SGT ANTHONY VARGA OF THE 11TH SIGNAL BRIGADE WAS THE ONLY SOLDIER CHARGED IN CONNECTION WITH THE INCIDENT WHICH OCCURRED MAY 26 IN THE SMALL TOWN OF BALE DOGLE NOT FAR FROM THE SOMALI CAPITAL ACCORDING TO AN INTERNAL MILITARY REPORT AT LEAST TWO ARMY SOLDIERS WERE ANGERED WHEN SEVERAL ITEMS INCLUDING A CASSETTE TAPE PLAYER WERE STOLEN FROM AN ARMY TRUCK THE SOLDIERS THEN ALLEGEDLY USED A HANDCRANKED ARMY TA312 FIELD TELEPHONE GENERATOR TO SHOCK TWO PEOPLE THEY SUSPECTED OF COMMITTING THE THEFT CHARGES HAVEN'T BEEN FILED AGAINST OTHER SOLDIERS ALLEGEDLY INVOLVED IN THE INCIDENT THE ARMY SAID SEPARATELY A SPOKESMAN FOR THE CENTRAL COMMAND THE US MILITARY'S COMMAND FOR EASTERN AFRICA AND THE MIDDLE EAST CONFIRMED THAT SOME MARINES FROM THE 24TH MARINE EXPEDITIONARY UNIT HAVE LANDED IN SOMALIA FROM TIME TO TIME THERE WILL BE SOME CONTINGENTS THAT COME INTO MOGADISHU FOR FAMILIARIZATION HE SAID THE MARINE FORCE HAD BEEN SAILING NEAR THE PERSIAN GULF BUT WAS DIVERTED TO THE COAST OF SOMALIA THIS MONTH AFTER FIGHTING BROKE OUT AGAIN IN MOGADISHU 9306240163 930624 POSTAL SERVICE SAYS IT HAS BEGUN TO ACCEPT CREDIT DEBIT CARDS WASHINGTON THE US POSTAL SERVICE HAS BEGUN ACCEPTING CREDIT AND DEBIT CARDS IN 555 LOCATIONS IN DALLAS ORLANDO FLA AND HERE AS PART OF A NATIONAL PROGRAM TO EXPAND CARD ACCEPTANCE CREDIT AND DEBIT CARDS SHOULD BE ACCEPTED AT MOST POST OFFICES IN OTHER CITIES BY NEXT SPRING A SPOKESWOMAN FOR THE POSTAL SERVICE SAID MASTERCARD VISA AND DISCOVER CARDS AS WELL AS LOCAL AUTOMATIC TELLER MACHINE CARDS CAN BE USED IN THE THREE CITIES FOR ANY POST OFFICE TRANSACTION EXCEPT THE PURCHASE OF MONEY ORDERS WITH ABOUT 33000 OUTLETS AND ABOUT 25 BILLION IN ANNUAL SALES THE POSTAL SERVICE COULD BECOME THE LARGEST SINGLE CARDACCEPTING MERCHANT SAID DAVID M LEWIS VICE PRESIDENT FOR GOVERNMENT ACCEPTANCE AT MASTERCARD INTERNATIONAL INC OF NEW YORK MR LEWIS FORECAST ABOUT 1 BILLION IN CREDIT AND DEBIT CARD BUSINESS FROM THE POSTAL SERVICE IN THE FIRST YEAR NATIONAL DATA CORP OF ATLANTA HOLDS THE TRANSACTION PROCESSING CONTRACT FOR THE PROGRAM AND THE POSTAL SERVICE IS PAYING THE TRADITIONAL MERCHANT RATES MR LEWIS SAID MASTERCARD AND THE POSTAL SERVICE ARE JOINTLY FUNDING THE PROMOTIONAL EFFORTS FOR THE PROGRAM WHILE CREDIT CARD COMPANIES HAVE BEEN PUSHING TO GAIN ACCEPTANCE IN GOVERNMENT AGENCIES THE POSTAL SERVICE HAS BEEN TRYING TO IMPROVE CUSTOMER SERVICE TO COMPETE WITH OTHER CARRIERS ACCEPTING CARDS GIVES OUR CUSTOMERS THE SAME CONVENIENCE THAT THEY ENJOY AT OTHER OUTLETS AND OTHER COMPETITORS THE POSTAL SERVICE SPOKESWOMAN SAID 9306240162 930624 INTERNATIONAL NEWEST PARTY IN JAPAN ADOPTS A POPULIST TONE SPLINTER SHINSEITO EMBRACES CONSUMERS AND POSES THREAT TO LDP CONTROL BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S NEWEST POLITICAL PARTY LAUNCHED ITS ELECTORAL ODYSSEY BY EMBRACING A LONGSUFFERING UNDERREPRESENTED CONSTITUENCY IN JAPAN THE CONSUMER JAPAN REMAINS A POWERFUL ECONOMIC COUNTRY BUT THE CORPORATE WARRIORS ARE SUFFERING FROM LONG COMMUTING HOURS TSUTOMU HATA HEAD OF THE SHINSEITO PARTY THUNDERED AT THE GROUP'S INAUGURAL NEWS CONFERENCE APPROACHING MATTERS FROM THE CONSUMER'S PERSPECTIVE WE WILL IMPLEMENT CONSIDERATE POLICIES AND BUILD A JAPAN IN WHICH IT IS POSSIBLE TO LEAD A FULFILLING LIFE THE NEW PARTY'S PLATFORM PROMISES MADE UP OF FORMER HEAVYWEIGHTS OF THE RULING LIBERAL DEMOCRATIC PARTY THE SHINSEITO IS EXPECTED TO DO WELL ENOUGH IN JULY 18 ELECTIONS TO CAUSE THE LDP TO LOSE PARLIAMENTARY CONTROL FOR THE FIRST TIME IN 38 YEARS THE PARTY MEMBERS BROKE WITH THE LDP OVER PRIME MINISTER KIICHI MIYAZAWA'S FAILURE TO PUSH POLITICAL REFORM THROUGH PARLIAMENT THEIR DEFECTION HAS CREATED JAPAN'S MOST SERIOUS POLITICAL CRISIS IN YEARS MR HATA DIDN'T OFFER ANY SPECIFIC POLICIES HOWEVER AND IT REMAINS TO BE SEEN HOW SINCERE HE IS UNTIL TUESDAY MR HATA AND HIS PARTISANS WERE ALL MEMBERS IN GOOD STANDING OF THE LDP NO FRIEND TO JAPAN'S LITTLE GUY MR HATA HIMSELF SERVED AS AGRICULTURE MINISTER AND FINANCE MINISTER IN CABINETS OF THE PROBUSINESS LDP POSTS CENTRAL TO ADMINISTERING POLICIES THAT KEEP PRICES AND TAXES HIGH BUT THE SHINSEITO'S RHETORIC AT LEAST INTRODUCES A NEW VOICE INTO JAPAN'S LONGSTULTIFIED POLITICAL DEBATE ONE REASON JAPAN HAS BEEN ABLE TO MAINTAIN POLICIES THAT NURTURE AND PROTECT ITS INDUSTRIES IS THAT NO CREDIBLE OPPOSITION PARTY HAS CONSISTENTLY CHALLENGED THE LDP'S GRIP ON POWER MAKING IT EASIER FOR POLITICIANS TO IGNORE POPULAR WILL THE NEW PARTY MAY ALSO HAVE LITTLE CHOICE BUT TO SEEK CONSUMER SUPPORT KEIDANREN JAPAN'S LARGEST BUSINESS ORGANIZATION ANNOUNCED EARLIER IN THE WEEK THAT IT WAS STICKING WITH ITS LONGSTANDING POLICY OF GIVING ITS MONEY AND SUPPORT TO THE LDP BUSINESS OFFICIALS DID HOWEVER SAY THAT THEY WELCOMED THE CREATION OF THE NEW PARTY THE SHINSEITO'S APPEAL ALSO SEEMS TO BE AIMED AT ANOTHER CONSTITUENCY GENERALLY OVERLOOKED BY THE LDP URBAN DWELLERS JAPAN'S SYSTEM OF REPRESENTATION IS SKEWED HEAVILY TOWARD RURAL AREAS WHICH HAVE BEEN A CHIEF LDP BASE AN EARLY SIGN OF HOW BADLY THE LDP'S URBAN SUPPORT IS ERODING IS EXPECTED SUNDAY IN ELECTIONS FOR THE TOKYO METROPOLITAN GOVERNMENT THE CAPITAL HAS NEVER BEEN AN LDP STRONGHOLD BUT THE PARTY IS EXPECTED TO TAKE AN UNUSUALLY BRUTAL DRUBBING THIS TIME ALREADY LDP CANDIDATES ARE DEFECTING TO OTHER PARTIES TO TRY TO SALVAGE THEIR CAREERS SHINSEITO HASN'T YET SELECTED AN ENGLISH NAME FOR THE PARTY BUT THE JAPANESE WORD TRANSLATES ROUGHLY AS NEW LIFE PARTY OR REINCARNATION PARTY PARTY MEMBERS ORIGINALLY OPTED FOR THE LESS HEADY NEW LIBERAL PARTY WHICH WOULD HAVE MADE THEIR TIES TO THE OLD PARTY CLEARER BUT THEY DISCOVERED AN OBSCURE GROUP HAD ALREADY CLAIMED THE MONIKER SEPARATELY MR HATA SOUGHT TO ASSURE JAPAN'S ALLIES THAT DESPITE THE GROUP'S ATTEMPTS TO UNSEAT MR MIYAZAWA THEY WON'T SIGNIFICANTLY CHANGE FOREIGN POLICY REFERRING TO THE SUMMIT OF INDUSTRIALIZED NATIONS WHICH TOKYO HOSTS JULY 7 MR HATA SAID THAT WHAT MR MIYAZAWA SAYS 'YES' TO WE'LL SAY 'YES' TO SHINSEITO IS MADE UP OF 36 INCUMBENT MEMBERS OF THE LOWER HOUSE OF PARLIAMENT AND EIGHT MEMBERS OF THE UPPER HOUSE SHINSEITO OFFICIALS SAID THEY EXPECT TO FIELD AS MANY AS 80 CANDIDATES IN THE JULY LOWERHOUSE ELECTIONS MR HATA'S GROUP HOPES TO WIN ENOUGH SEATS TO FORGE A COALITION AFTER THE ELECTIONS WITH OTHER NEW AND OLD ANTILDP PARTIES BUT AN ASAHI SHIMBUN NEWSPAPER POLL PUBLISHED YESTERDAY SHOWED THAT WHILE ONLY 6 OF THE VOTERS FAVOR ANOTHER LDP GOVERNMENT 62 WANT A COALITION GOVERNMENT THAT INCLUDES THE LDP 9306240161 930624 WHO'S NEWS CPC INTERNATIONAL INC CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ KONRAD SCHLATTER 57 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS FOOD PRODUCTS CONCERN EFFECTIVE JULY 1 MR SCHLATTER WHOSE POSITION IS NEW IS CURRENTLY SENIOR VICE PRESIDENT OF FINANCE 9306240160 930624 TECHNOLOGY & SCIENCE GROUP TO SEEK CAP ON MEDICAL COSTS IN MASSACHUSETTS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN A NOVEL PUBLICPRIVATE COLLABORATION TO HOLD DOWN HEALTHCARE COSTS 26 LARGE EMPLOYERS AND STATE GOVERNMENT AGENCIES HERE SAID THEY WILL JOINTLY SEEK TO CAP MASSACHUSETTS HEALTHCARE PROVIDERS' PRICE INCREASES THE COALITION CALLED THE MASSACHUSETTS HEALTHCARE PURCHASERS GROUP APPARENTLY IS THE FIRST TO COMBINE THE CLOUT OF BOTH EMPLOYERS AND A STATE WELFARE DEPARTMENT IN THE GROWING EFFORT TO CURB HEALTHCARE COSTS SAID SEAN SULLIVAN PRESIDENT OF THE NATIONAL BUSINESS COALITION FORUM ON HEALTH A WASHINGTON DC GROUP THAT REPRESENTS EMPLOYER COALITIONS THE MASSACHUSETTS GROUP'S MEMBERS INCLUDING POLAROID CORP BOSTON EDISON CO BAYBANKS INC DATA GENERAL CORP AND THE MASSACHUSETTS MEDICAID PROGRAM FUND CARE FOR ABOUT A MILLION EMPLOYEES DEPENDENTS AND STATE WELFARE RECIPIENTS REPRESENTING ABOUT A FOURTH OF THE STATE'S HEALTHCARE MARKET IN A NEWS RELEASE THE GROUP SAID IT CHALLENGED MASSACHUSETTS MANAGEDCARE PROVIDERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS TO LIMIT THEIR 1994 PRICE INCREASES TO NO MORE THAN THE US CONSUMER PRICE INDEX PLUS 4 SUBJECT TO AN ABSOLUTE LIMIT OF 10 THE GROUP ADDED THAT IT WILL SEEK LOWER PRICE RISES IN SUBSEQUENT YEARS BY 1997 THE CAP WILL BE THE CONSUMER PRICE INDEX PLUS 1 UNLIKE SOME OTHER HEALTHCARE PURCHASERS' GROUPS THE MASSACHUSETTS ONE WON'T EXERT PRESSURE ON PROVIDERS BY BUYING MEDICAL SERVICES AS A UNIFIED ENTITY BUT THE GROUP SAID ITS MEMBERS MAY INDEPENDENTLY CHOOSE PROVIDERS BASED ON PRICE AND QUALITY INFORMATION THE COALITION SEEKS FROM THEM THE GROUP INITIALLY IS FOCUSING ON HMOS AND ASKING THEM TO PUBLISH STATISTICS ON SIX QUALITY INDICATORS PRENATAL CARE ASTHMA ADMISSION RATE CAESAREAN SECTION RATE HYPERTENSION SCREENING RATE MAMMOGRAPHY SCREENING RATE AND MENTAL HEALTH READMISSION RATE THE GROUP PLANS LATER TO SEEK MORE COMPREHENSIVE MEASURES OF QUALITY PREMIUM INCREASES BY MASSACHUSETTS HMOS LAST YEAR RANGED FROM 9 TO 11 SAID ROBERT HUGHES PRESIDENT OF THE MASSACHUSETTS ASSOCIATION OF HEALTH MAINTENANCE ORGANIZATIONS THE NEW GROUP'S REQUESTED PRICERISE CAPS PREDICTED TO BE 8 FOR 1994 ARE AMBITIOUS BUT YOU HAVE TO START SOMEWHERE HE ADDED 9306240159 930624 FINANCING BUSINESS BC TELECOM INC BC TELECOM INC VANCOUVER BRITISH COLUMBIA SAID IT SOLD 175 MILLION CANADIAN DOLLARS US137 MILLION OF FIVEYEAR 725 DEBENTURES THE TELEPHONE UTILITY SAID THE FUNDS WILL BE USED TO REPAY DEBT 9306240158 930624 WHO'S NEWS BROOKLYN UNION GAS CO BROOKLYN UNION GAS CO BROOKLYN NY EDWARD D MILLER 52 YEARS OLD WAS NAMED A DIRECTOR AT THIS GAS UTILITY INCREASING THE BOARD'S SIZE TO 10 MEMBERS MR MILLER IS VICE CHAIRMAN OF CHEMICAL BANKING CORP AND ITS CHEMICAL BANK UNIT IN NEW YORK 9306240157 930624 CALL WAITING TRIALS BY NYNEX CORP UNIT WILL BE DISCONTINUED NEW YORK NEW YORK TELEPHONE CO AGREED TO FREEZE FREE PROMOTIONAL TRIALS OF ITS CALL WAITING SERVICE FOLLOWING COMPLAINTS FROM CONSUMERS WHO WERE UNAWARE THEY WERE RECEIVING THE SERVICE CALL WAITING WHICH SIGNALS A PHONE USER WITH A BEEP THAT ANOTHER CALL IS COMING IN IS BEING ACTIVELY PROMOTED BY THE NYNEX CORP UNIT IN SEVERAL AREAS IN NEW YORK STATE BUT CONSUMERS HAVE MADE A FLURRY OF CALLS TO THE NEW YORK STATE DEPARTMENT OF PUBLIC SERVICE TO COMPLAIN THAT THEY DIDN'T KNOW THAT THEY WERE PARTICIPATING IN A FREE TRIAL AND THAT IT WAS DISRUPTING PHONE SERVICES THE NEW YORK STATE PUBLIC SERVICE COMMISSION WHICH RECEIVED THE COMPLAINTS SAID NEW YORK TELEPHONE AGREED TO CONCLUDE CURRENT TRIALS ON AUG 14 AND TO SUSPEND FUTURE TRIALS UNTIL THE COMPANY ADDRESSED SEVERAL CONCERNS CONSUMERS FOR INSTANCE WERE ANGRY AT BEING AUTOMATICALLY MADE PARTICIPANTS IN THE TRIAL UNLESS THEY SPECIFICALLY OPTED OUT BY INFORMING NEW YORK TELEPHONE AN APPROACH CALLED THE NEGATIVE CHECKOFF WHICH HAS BEEN A LONGSIMMERING ISSUE AMONG CONSUMERS AND CONSUMER GROUPS SOME CONSUMERS WHO HAD THE SERVICE BUT WERE AT FIRST UNAWARE OF IT FOUND IT INTERRUPTED THE TRANSMISSION OF COMPUTER DATA OVER TELEPHONE LINES ALSO SINCE THE SERVICE ELIMINATES THE BUSY SIGNAL A CALLING PARTY MIGHT MISTAKENLY THINK THAT THE PERSON THE PARTY IS TRYING TO REACH ISN'T THERE WE UNDERSTAND THE COMMISSION'S CONCERNS AND THAT'S WHY WE ARE SUSPENDING THE TRIALS A NEW YORK TELEPHONE SPOKESMAN SAID ADDING THAT ABOUT 166000 CUSTOMERS HAVE BEEN AFFECTED BY THE COMPANY'S LATEST ROUND OF PROMOTIONS HE SAID CUSTOMERS RECEIVED TWO SEPARATE MAILINGS PRIOR TO THE ACTIVATION OF THE FREE CALL WAITING SERVICE THAT WERE PRETTY EXPLICIT ABOUT THE DETAILS OF THE SERVICE A BILL THAT HAS PASSED THE NEW YORK STATE ASSEMBLY AND IS PENDING IN THE SENATE WOULD BAR NEGATIVE CHECKOFF MARKETING OF TELEPHONE SERVICES 9306240156 930624 THEY'VE LEARNED THAT EVERYBODY MUST SEE THIS SHOW AT LEAST ONCE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA THE HILLS ARE ALIVE FINALLY WITH THE SOUND OF MUSIC HERE IN AUSTRIA WHICH ISN'T EXACTLY HOLLYWOOD'S EDELWEIS REPUBLIC FULL OF SINGING NUNS FROLICKING CHILDREN AND SCHNITZEL AND NOODLES AND APPLE STRUDELS THESE ARE A FEW OF MY FAVORITE THINGS JULIE ANDREWS IS A VIRTUAL UNKNOWN AS ARE THE RODGERS AND HAMMERSTEIN LYRICS EMBEDDED IN THE MINDS OF GENERATIONS OF AMERICANS THE MOVIE ENDURED A SHORT AND IGNOMINIOUS RUN WHEN FIRST RELEASED HERE IN THE MID1960S DOOMED BY CRITICS WHO LABELED IT AMERICAN KITSCH AND A POPULATION THAT DIDN'T WANT TO BE REMINDED OF AUSTRIA'S ACQUIESENCE TO THE NAZIS AUSTRIAN TELEVISION HAS NEVER BROADCAST THE MOVIE CLERKS AT VIDEO STORES HAVE NEVER HEARD OF IT NOW THE MUSICAL HAS BEEN BROUGHT TO THE VIENNA STAGE BY AN AVANTGARDE TROUPE AT DAS SCHAUSPIELHAUS JUST AS AUSTRIA AND OTHER NATIONS IN EUROPE ARE EXPERIENCING A RESURGENCE OF THE KIND OF RIGHTWING EXTREMISM THAT FORCED THE SINGING VON TRAPP FAMILY TO FLEE OVER THE MOUNTAINS IN 1938 WE FIGURED IT WAS ABOUT TIME THE AUSTRIANS SAW THE SHOW SAYS BARBARA SPITZ A CODIRECTOR A NEW GENERATION OF AUSTRIANS FILLS THE HOUSE NIGHTLY THERE'S STILL PLENTY OF ALPINE GAIETY BUT THE PLAY ISN'T THE SWEET SYRUPY VERSION KNOWN TO AMERICANS DRUNKEN BROWNSHIRTED NAZIS SKULK AROUND LIKE APES THUMPING THEIR BREASTS BEFORE SHOOTING OUT THE HEIL HITLER SALUTE THE LOVE STORY OF WAYWARD NUN MARIA AND UBOAT KAPITAN GEORG VON TRAPP SERVES AS A SUBPLOT TO THE TENSIONS OF RESISTING OR JOINING THE NAZIS THAT THEME IS HIGHLIGHTED BY A NEW MUSICAL ROUTINE BEST DESCRIBED AS GOING ALONG TO GET ALONG WITH UNCLE MAX AND GEORG'S ERSTWHILE FIANCEE BARONESS ELSA AND THE TEARYEYED MATURATION OF LIESL SIXTEEN GOING ON SEVENTEEN IS SECOND TO THE TRANSFORMATION OF HER BOYFRIEND ROLF FROM GOOFY LOVESICK MAILMAN TO HITLER YOUTH I WANT TO SHOW HOW EASILY INFLUENCED PEOPLE ARE THESE DAYS SAYS MAXIMILIAN MUELLER WHOSE ROLF HAS THE ACCENT OF THE SOUTHERN CARINTHIA PROVINCE SOURCE OF MUCH OF AUSTRIA'S CURRENT ANTIFOREIGNER RHETORIC HE SAYS AUDIENCE REACTION TO ROLF HAS CHANGED SINCE THE RECENT EVENTS IN SOLINGEN GERMANY WHERE NEONAZI YOUTHS BURNED SEVERAL TURKS TO DEATH NOW IT'S LIKE NERVOUS LAUGHTER HE SAYS ROLF ISN'T A JOKE ANYMORE HE'S REAL 9306240155 930624 TECHNOLOGY BRIEF APPLE COMPUTER INC NEW COMPUTER ON SCHEDULE TO HIT MARKET THIS SUMMER APPLE COMPUTER INC SAID ITS NEW HANDHELD NEWTON COMPUTER IS ON SCHEDULE TO REACH THE MARKET SOMETIME THIS SUMMER APPLE BASED IN CUPERTINO CALIF MADE ITS ANNOUNCEMENT AMID SPECULATION IT WAS HAVING DIFFICULTY BRINGING THE PORTABLE DEVICE TO MARKET JOHN SCULLEY APPLE CHAIRMAN SAID YESTERDAY IN A SPEECH AT A COMPUTER CONFERENCE IN LOS ANGELES IN THE LAST WEEK OUR FIRST NEWTON PDA PERSONAL DIGITAL ASSISTANT ENTERED ITS FINAL TESTING PHASE BEFORE MANUFACTURING THIS PRODUCT IS ON TRACK APPLE HASN'T ANNOUNCED A SPECIFIC DATE FOR INITIAL SALES NEWTON IS THE FIRST IN A LINE OF NEW COMPUTERS APPLE HOPES WILL HELP PULL IT OUT OF THE DOLDRUMS THE NEW COMPUTERS ARE KEY TO APPLE'S PLANS TO EXPAND ITS BUSINESS IN SUCH AREAS AS WIRELESS COMMUNICATIONS PUBLISHING AND CONSUMER ELECTRONICS NEWTON FOR INSTANCE IS EXPECTED TO BE USED FOR ELECTRONIC MESSAGING DISPLAYING TEXTS PLAYING GAMES AND SENDING FAXES 9306240154 930624 BUSINESS BRIEF SARATOGA SPRING WATER CO BOTTLER'S SHARES EXCEED 7 IN FIRSTTIME PUBLIC TRADING SHARES OF SARATOGA SPRING WATER CO A BOTTLER OF NATURAL SPRING AND MINERAL WATER ROSE TO A PREMIUM AFTER REACHING THE MARKET AT 5 A SHARE THE SARATOGA SPRINGS NY COMPANY SOLD 12 MILLION CLASS A COMMON SHARES AND WILL USE PROCEEDS TO BUY EQUIPMENT PAY MARKETING COSTS REPAY DEBT AND BOOST WORKING CAPITAL IN OVERTHECOUNTER TRADING SARATOGA SHARES UNDER THE SYMBOL TOGA TRADED AS HIGH AS 8 A SHARE AND CLOSED AT 7125 THE COMPANY WAS FORMED LAST YEAR TO ACQUIRE ITS SARATOGA SPRINGS PLANT FROM EVIAN WATERS OF FRANCE A DIVISION OF BSN SA WHICH HAD ACQUIRED THE BUSINESS IN 1988 AND CLOSED THE PLANT IN MAY 1991 PRODUCTION HAS RESUMED DH BLAIR INVESTMENT BANKING CORP WAS THE UNDERWRITER OF THE OFFERING 9306240153 930624 BUSINESS BRIEF RH MACY & CO RETAILER TO PAY 162 MILLION TO SETTLE US TAX DISPUTE RH MACY & CO SAID IT WILL PAY 162 MILLION TO THE INTERNAL REVENUE SERVICE IN AN AGREEMENT TO SETTLE A DISPUTE OVER FEDERAL INCOME TAXES FOR SEVERAL YEARS THE CLOSELY HELD RETAILER WHICH HAS BEEN IN CHAPTER 11 PROCEEDINGS SINCE JANUARY 1992 SAID THE AGREEMENT COVERS ITS FISCAL YEARS 1984 TO 1991 ENDING IN JULY THE AGREEMENT PROVIDES FOR THE IRS TO HAVE A TOTAL PRIORITY CLAIM FOR FEDERAL INCOME AND OTHER TAXES SUCH AS SOCIAL SECURITY OF ABOUT 230 MILLION PARTLY OFFSET BY A TAX BENEFIT OF NET OPERATING LOSSES FROM FISCAL 1992 A SPOKESWOMAN SAID THE TAX LIABILITY IS THEREFORE REDUCED TO ABOUT 162 MILLION MACY SAID MACY SAID THE AGREEMENT IS SUBJECT TO BANKRUPTCY COURT APPROVAL THE IRS AGREEMENT COVERS ONLY FEDERAL INCOME TAXES FOR THE PERIOD PRIOR TO THE CHAPTER 11 FILING IT NOTED VARIOUS STATES AND OTHER TAXING AUTHORITIES HAVE ASSERTED CLAIMS FOR INCOME SALES REAL ESTATE AND OTHER TAXES WHICH ARE UNRESOLVED MACY HAS AN ESTIMATED 543 BILLION OF OBLIGATIONS TO BE SETTLED AS PART OF ITS REORGANIZATION PLAN ACCORDING TO ITS RECENT QUARTERLY FILING WITH REGULATORS 9306240152 930624 MONEY FUND YIELDS REMAINED UNCHANGED IN MOST RECENT WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE UNCHANGED IN THE LATEST WEEK AS INSTITUTIONAL INVESTORS ADDED BILLIONS OF DOLLARS TO ASSETS AND INDIVIDUALS PULLED MONEY OUT IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 265 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 597 TAXABLE FUNDS ROSE BY 410 BILLION TO 479 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ADDED 462 BILLION WHILE INDIVIDUAL INVESTORS WITHDREW 518 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 60 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 262 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE AVERAGE 30DAY SIMPLE YIELD INCHED UP TO 262 FROM 261 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 265 YIELDS ON TAXFREE FUNDS FELL FOR THE THIRD CONSECUTIVE WEEK WHICH WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED TO SEASONAL FACTORS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXEXEMPT FUNDS SLID TO 172 FROM 186 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 239 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 249 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 323 TAXEXEMPT FUNDS FELL BY 144 BILLION TO 10061 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY LENGTHENED BY FOUR DAYS TO 52 DAYS 9306240151 930624 TECHNOLOGY BRIEF GENPHARM INTERNATIONAL INC COLLABORATION PACT IS SIGNED WITH EISAI ON ANTIBODIES GENPHARM INTERNATIONAL INC MOUNTAIN VIEW CALIF SAID IT SIGNED A PACT WITH EISAI CO OF JAPAN TO COLLABORATE ON THE PRODUCTION OF HUMAN MONOCLONAL ANTIBODIES FROM TRANSGENIC MICE UNDER THE PACT EISAI WILL MAKE RESEARCH AND MILESTONE PAYMENTS OF UP TO 25 MILLION TO GENPHARM IN EXCHANGE FOR MARKETING RIGHTS IN ASIA AS WELL AS CERTAIN MANUFACTURING RIGHTS EISAI A HEALTHCARE COMPANY ALSO WILL PAY ROYALTIES TO GENPHARM IF AND WHEN THE ANTIBODY PRODUCT IS COMMERICALIZED GENPHARM IS A BIOTECHNOLOGY COMPANY ENGAGED IN THE CREATION OF GENETICALLY MODIFIED MICE BY INACTIVATING THE MOUSE IMMUNE SYSTEMS AND SUBSTITUTING NEW GENES FOR THE PRODUCTION OF HUMAN ANTIBODIES WHEN INJECTED WITH DISEASECAUSING PROTEINS CALLED ANTIGENS THESE GENESPLICED MICE CAN PRODUCE HUMAN ANTIBODIES TO BE USED IN THE DIAGNOSIS AND TREATMENT OF DISEASE 9306240150 930624 PERSONAL TECHNOLOGY WALTER S MOSSBERG SO YOU'VE DECIDED TO TAKE THE PLUNGE AND BUY A NEW PERSONAL COMPUTER ALREADY IMAGINING THE SLEEK NEW MACHINE ON YOUR DESK YOU EAGERLY OPEN THE NEWSPAPER AND START GOING THROUGH THE ADS ONLY TO FIND YOU'RE LIKELY TO GET A HEADACHE BEFORE YOU GET A COMPUTER THAT'S BECAUSE THE TYPICAL RETAIL COMPUTER AD IS THE MUTANT OFFSPRING OF AN INTERNAL REVENUE SERVICE TAX MANUAL AND A USEDCAR PITCH WITH EQUAL QUANTITIES OF HEADLINE TYPE PROMISING GENEROUS DEALS AND FINE PRINT FILLED WITH TECHNOBABBLE SHOWING THE LIMITS OF THAT GENEROSITY TO HELP YOU WADE THROUGH IT HERE'S A BRIEF GUIDE TO READING COMPUTER ADS BASED ON THE JUNE 22 NEW YORK TIMES WHOSE HOMETOWN OFFERS SOME OF THE WORLD'S LOWEST COMPUTER PRICES AND MOST AGGRESSIVE DEALERS WHO MADE IT IF YOU'RE WILLING TO SETTLE FOR A LITTLEKNOWN IBMCOMPATIBLE GREAT BARGAINS CAN BE HAD MY ISSUE OF THE TIMES CARRIES ADS FOR SUCH OBSCURE BRANDS AS COMPUTECH KENITEC AND UPTECH I'VE NEVER HEARD OF THESE BUT I HAVE NO REASON TO THINK THEY'RE FLAWED JUST BE AWARE THAT UNKNOWN BRANDS MAY HAVE UNEVEN QUALITY LACK SERVICE ORGANIZATIONS OR EVEN DISAPPEAR ANY TIME IF THESE POSSIBILITIES BOTHER YOU YOU MAY WANT TO STICK WITH NAMES LIKE IBM COMPAQ PACKARD BELL AND OTHERS EVEN THE LEADING COMPANIES HOWEVER NOW OFFER A CONFUSING ARRAY OF BRAND NAMES FOR MACHINES THAT ARE SIMILAR OR IDENTICAL IBM'S PS/1 MACHINES SOLD IN DEPARTMENT ELECTRONICS AND OFFICESUPPLY STORES ARE MUCH THE SAME AS ITS VALUEPOINT MODELS SOLD AT COMPUTER STORES AND BY MAIL APPLE'S MACINTOSH PERFORMAS SOLD IN MASS MERCHANTS HAVE THE SAME INNARDS AS CERTAIN REGULAR MACS SOLD IN COMPUTER STORES BOTH COMPANIES SIMPLY USE DIFFERENT BRAND NAMES AND DIFFERENT PACKAGES OF ACCESSORIES SOFTWARE AND SERVICE AT THE DIFFERENT TYPES OF STORES PACKARD BELL ANOTHER BIG SELLER OFFERS THE SAME MACHINE TO DIFFERENT STORES UNDER SUCH DIFFERENT NAMES AS FORCE OR LEGEND WHAT'S INCLUDED THIS MAY SEEM OBVIOUS BUT EVERY COMPUTER SHOULD COME WITH A HARD DISK DRIVE AT LEAST ONE FLOPPY DISK DRIVE A MONITOR SCREEN A KEYBOARD AND ENOUGH MEMORY TO RUN WHATEVER SOFTWARE IS INCLUDED BUT YOU CAN'T TAKE ALL THAT FOR GRANTED JUST BECAUSE A MACHINE HAS A SOCKET FOR A MONITOR DOESN'T MEAN A MONITOR COMES WITH IT MACINTOSH PRICES EXCEPT FOR THE PERFORMA MODELS ROUTINELY EXCLUDE THE COST OF A MONITOR AND KEYBOARD WHICH APPLE HAS TRADITIONALLY STATED SEPARATELY PARTLY TO DISGUISE ITS HIGHER PRICES THIS PRACTICE IS IN MY VIEW AT BEST CONFUSING AND AT WORST MISLEADING A GOOD MAC COLOR MONITOR AND KEYBOARD WILL ADD 500 OR SO TO THE COMPUTER'S PRICE SO FACTOR THAT IN IT DOESN'T HAPPEN ONLY WITH MACS ONE STORE IN THE TIMES 47TH ST PHOTO ADVERTISED A FAST 486 IBM CLONE FOR 999 IN BIG BOLD LETTERS BUT DECLARED MONITOR OPTIONAL IN TINY TYPE FIVE LINES DOWN A MONITOR ISN'T OPTIONAL OR CHEAP UNLESS YOU ALREADY OWN ONE THE SAME AD OFFERED A NICE NEC SCREEN FOR 588 THEN THERE'S THE BIG AD BY COMPUTER ERA A NEW YORK APPLE DEALER ITS ROCKBOTTOM MAC PRICES EXCLUDE NOT ONLY MONITORS AND KEYBOARDS LIKE OTHER DEALERS' PRICES BUT ALSO THE HARD DISK DRIVES NOTING HD ADDITIONAL IN SMALL LETTERS APPLE DOESN'T SHIP MACS WITHOUT HARD DRIVES BUT THE STORE SAYS IT'S TRYING ONLY TO GIVE CUSTOMERS MORE CHOICES NOT TO LOWBALL ITS PRICES WHAT DO THE ABBREVIATIONS MEAN MUCH OF THE ALPHABET SOUP IN ADS REFERS TO A COMPUTER'S CENTRAL PROCESSOR OR BRAIN A 486 CHIP IS THE CURRENT STANDARD ON IBMCOMPATIBLE PCS MAINSTREAM USERS SHOULD STICK WITH IT AVOIDING THE OLDER 386 AND THE NEW COSTLY PENTIUM AN SX VERSION OF A CHIP AS IN 486SX HAS A BIT LESS POWER THAN A DX VERSION WHICH ISN'T AS FAST AS A DX2 A NUMBER FOLLOWED BY MHZ REFERS TO THE SPEED OF THE PROCESSOR HIGHER IS FASTER AND 20 25 OR 33 ARE FINE FOR MOST USERS ON MACS BUSINESS USERS SHOULD NOW STRONGLY CONSIDER A BLAZING 68040 PROCESSOR LIGHTDUTY HOME USERS CAN STICK WITH THE OLDER SLOWER 68030 OTHER ABBREVIATIONS REFER TO VIDEO VGA THE STANDARD VIDEO RESOLUTION AVAILABLE ON IBMCOMPATIBLES IS FINE FOR MAINSTREAM COMPUTING SVGA MEANS SUPER VGA AND GIVES BETTER RESOLUTION DOT PITCH EXPRESSED AS A DECIMAL NUMBER FOLLOWED BY MM FOR MILLIMETERS REFERS TO THE SHARPNESS OF THE SCREEN LOWER IS BETTER AND I PREFER 029MM OR BELOW LOCAL BUS VESA OR VL REFER TO NEW METHODS FOR SPEEDING THE CREATION OF VIDEO IMAGES SOME ABBREVIATIONS COVER MEMORY RAM IS THE COMPUTER'S MAIN MEMORY MEASURED IN MEGABYTES OR MB AND KILOBYTES OR KB BUY AS MUCH AS YOU CAN BUT INSIST ON 4MB OR MORE VRAM IS SPECIAL MEMORY FOR THE SCREEN AT LEAST HALF A MEGABYTE 512KB IS ADVISABLE CACHE MEMORY IS ANOTHER SPECIAL VARIETY IT HELPS ELIMINATE TIMECONSUMING DISKDRIVE ACTIVITY LOOK FOR 128KB OR MORE FINALLY THERE'S DISK STORAGE HD IS THE HARD DISK DRIVE ITS CAPACITY ALSO MEASURED IN MEGABYTES INSIST ON 100MB OR MORE A 35INCH DRIVE IS THE MOST COMMON TYPE OF FLOPPY DISK DRIVE WITH THE OLDER 525INCH VARIETY FADING FROM USE CDROM DRIVES PLAY SPECIAL COMPACT DISKS FILLED WITH TEXT GRAPHICS SOUND AND EVEN VIDEO THEIR SPEED IS CRUCIAL AND IS MEASURED IN MILLISECONDS OR MS LOWER IS BETTER AND 350MS OR LESS IS PREFERABLE A DOUBLESPIN OR DOUBLESPEED CDROM DRIVE CAN PLAY VIDEO AND SOUND FASTER A CDROM THAT SAYS MPC MEETS THE INDUSTRY STANDARD FOR MULTIMEDIA ON IBMCOMPATIBLES WHAT A MESS MAYBE THIS WILL ALL GET EASIER AND CLEARER SOMEDAY SOON BUT DON'T HOLD YOUR BREATH 9306240149 930624 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO WALTER E MASSEY WAS ELECTED A DIRECTOR OF THIS OIL COMPANY BRINGING THE BOARD TO 13 MEMBERS DR MASSEY 55 YEARS OLD IS THE PROVOST AND SENIOR VICE PRESIDENT OF ACADEMIC AFFAIRS AT THE UNIVERSITY OF CALIFORNIA 9306240148 930624 WHO'S NEWS LIZ CLAIBORNE INC LIZ CLAIBORNE INC NEW YORK JIM METSCHER 36 YEARS OLD WAS NAMED PRESIDENT OF FIRST ISSUE ONE OF THE TWO SPECIALTY RETAILING DIVISIONS OF THIS APPAREL COMPANY MR METSCHER WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT OF PRODUCT DEVELOPMENT AT TALBOTS IN HINGHAM MASS 9306240147 930624 WHO'S NEWS CARPENTER TECHNOLOGY CORP CARPENTER TECHNOLOGY CORP READING PA MYLLE H BELL 44 YEARS OLD EXECUTIVE VICE PRESIDENT OF STRATEGIC MANAGEMENT FOR HOLIDAY INN WORLDWIDE A UNIT OF BASS PLC AND MARCUS C BENNETT 57 VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MARTIN MARIETTA CORP WERE ELECTED DIRECTORS OF THIS MANUFACTURER OF SPECIALTY STEEL PRODUCTS AND SPECIALTY ALLOYS EXPANDING THE BOARD TO 13 ONE CURRENT BOARD MEMBER THOMAS BEAVER JR WILL STEP DOWN AT THE ANNUAL MEETING IN OCTOBER REDUCING THE BOARD'S SIZE TO 12 9306240146 930624 MARKETSCAN HEALTH DOUBTS CUT INTO MARGARINE SALES BY KATHLEEN DEVENY MARGARINE SALES ARE MELTING MANY AMERICANS ARE SWITCHING TO BUTTER THANKS TO BARGAIN BUTTER PRICES AND RECENT REPORTS THAT HYDROGENATED VEGETABLE FATS IN MARGARINE MAY NOT BE SO HEALTHFUL AFTER ALL CONSUMER EXPERTS SAY SOFTENING MARGARINE SALES PARTLY REFLECT SHOPPERS' CONFUSION ABOUT EXACTLY WHAT CONSTITUTES HEALTHFUL EATING ADMONISHED FOR YEARS TO CUT BACK ON ANIMAL FATS PEOPLE BY THE MILLIONS SWITCHED FROM BUTTER TO MARGARINE NOW THOUGH SOME WHO KICKED THE BUTTER HABIT HAVE BECOME DISILLUSIONED AFTER LEARNING THAT VEGETABLE SHORTENINGS MAY ALSO RAISE THE RISK OF CARDIOVASCULAR DISEASE THE RECENT DECLINE IN THE 146 BILLION MARGARINE BUSINESS HAS BEEN SUBSTANTIAL SUPERMARKET SALES OF THE STICKS AND SPREADS FELL 7 TO 3258 MILLION DURING THE 12 WEEKS ENDED APRIL 25 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNIT SALES FOLLOWED A SIMILAR COURSE MEANWHILE CONSUMERS DROPPED MORE BUTTER INTO THEIR SHOPPING CARTS BUTTER VOLUME JUMPED 5 THOUGH DOLLAR SALES SLIPPED AS RETAIL PRICES DECLINED NEARLY EVERY BIG MARGARINE BRAND SUFFERED IN THE 12WEEK PERIOD SALES OF SHEDD'S COUNTRY CROCK MADE BY A UNIT OF UNILEVER GROUP FELL 46 SALES OF PARKAY MARGARINE MADE BY THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS DROPPED 17 AND SALES OF FLEISCHMANN'S MARGARINE FROM NABISCO GROUP FELL 21 BUCKING THE TREND UNILEVER'S I CAN'T BELIEVE IT'S NOT BUTTER A SPREAD MADE WITH SOYBEAN OIL AND BUTTERMILK THAT CLAIMS TO TASTE MORE LIKE THE DAIRY PRODUCT IT CONTAINS 70 VEGETABLE OILS VS 80 FOR TRADITIONAL MARGARINE SALES OF THE BRAND WHICH WAS ROLLED OUT NATIONALLY IN 1988 GREW 9 IN THE RECENT 12WEEK PERIOD MARKETING EXPERTS ATTRIBUTE THE SUCCESS LARGELY TO ITS SALES PITCH WHICH STRESSES FLAVOR AND SOFTPEDALS HEALTH CLAIMS IT DELIVERS ON ITS TASTE PROMISE SAYS MICHAEL BAUER VICE PRESIDENT OF MARKETING FOR UNILEVER'S VAN DEN BERGH FOODS DIVISION AND IT IS A BRAND NAME THAT'S VERY DIFFERENT MARKETERS BLAME MARGARINE'S DECLINING SALES MOSTLY ON BARGAIN BUTTER PRICES THE AVERAGE RETAIL PRICE OF BUTTER HAS DROPPED ABOUT 40 CENTS A POUND TO ABOUT 140 OVER THE PAST FOUR YEARS SAYS MICHAEL STAMMER DIRECTOR OF MARKET RESEARCH AT THE UNITED DAIRY INDUSTRY ASSOCIATION THE PRICE GAP BETWEEN BUTTER AND MARGARINE HAS NARROWED MR STAMMER SAYS WE'RE FINALLY SEEING A FEW YEARS IN A ROW IN WHICH SALES ARE STRONG CHANGING EATING HABITS MAY ALSO BE REDUCING DEMAND FOR MARGARINE WHICH IS USED PRIMARILY AS A TABLE SPREAD OR TOPPING FOR HOT FOODS UNILEVER'S MR BAUER SPECULATES THAT SALES MAY BE DECLINING BECAUSE CONSUMPTION OF MANY HOST FOODS FOR MARGARINE IS SHRINKING FEWER PEOPLE NOW REGULARLY EAT ROLLS OR BREAD WITH DINNER FOR EXAMPLE SO THEY USE LESS MARGARINE BUT SOME MARKET RESEARCHERS TIE THE TREND MORE DIRECTLY TO AMERICANS' WANING INTEREST IN MAINTAINING A HEALTHFUL DIET CONSUMERS TURNED AWAY FROM MANY HIGHFAT AND HIGHCHOLESTEROL FOODS IN THE 1980S AND CONSUMPTION OF MARGARINE SURGED BUT IN THE PAST FEW YEARS CONSUMERS' WILLPOWER APPEARS TO HAVE WEAKENED LAST YEAR PEOPLE TOOK HOME A RECORD AMOUNT OF BACON FOR EXAMPLE EVEN SALES OF FRESH EGGS LONG ASSOCIATED WITH CHOLESTEROL APPEAR TO HAVE BOTTOMED OUT MARGARINE MARKETERS SUSTAINED ANOTHER BLOW EARLIER THIS YEAR WHEN A STUDY CONDUCTED BY THE HARVARD SCHOOL OF PUBLIC HEALTH RECEIVED WIDE PRESS COVERAGE THE STUDY PART OF A CONTINUING ANALYSIS OF THE DIETS OF 90000 NURSES CONCLUDED THAT MARGARINE IN STICK FORM WAS ASSOCIATED WITH A 70 INCREASE IN THE RISK OF HEART DISEASE IN WOMEN THOUGH MARGARINE'S STATUS AS A HEALTHFUL ALTERNATIVE TO BUTTER HAD ALREADY BEEN FADING THE HARVARD STUDY WAS THE MOST CONCLUSIVE EVIDENCE TO DATE THAT SOME HYDROGENATED VEGETABLE OILS ARE NO MORE HEALTHFUL THAN NATURAL ANIMAL FATS YET MARKETERS PLAY DOWN THE SIGNIFICANCE OF THE REPORT INSISTING THAT THEIR PRODUCTS ARE PART OF A HEALTHFUL DIET AND THAT OTHER RESEARCH HAS CONTRADICTED THE HARVARD FINDINGS TO REVIVE SALES THEY ARE SCRAMBLING TO SPIN OUT NEW PRODUCTS NABISCO THE NATION'S NO 2 MARGARINE PRODUCER AFTER UNILEVER RECENTLY INTRODUCED MOVE OVER BUTTER WHICH CONTAINS BUTTERMILK THE UNIT OF RJR NABISCO HOLDINGS CORP JUST BEGAN SHIPPING TODAY'S CHOICE MADE FROM CANOLA OIL AND UNILEVER IS ROLLING OUT PROMISE ULTRA FAT FREE WHICH IT TOUTS AS THE WORLD'S FIRST NONFAT MARGARINE THE COMPANY WON'T SAY WHAT THE PRODUCT IS MADE FROM THE FIRST INGREDIENT LISTED ON THE LABEL IS WATER MARGARINE STILL HAS A FEW THINGS GOING FOR IT FOUR OUT OF FIVE AMERICANS ATE MARGARINE IN ANY TWOWEEK PERIOD LAST YEAR SAYS HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO COMPANY THAT TRACKS AMERICANS' EATING HABITS ONLY 31 CONSUMED BUTTER AS FREQUENTLY WITHIN THE MARGARINE MARKET THERE IS STILL PLENTY OF ROOM FOR SEGMENTATION MR BALZER SAYS BECAUSE ALMOST EVERYBODY BUYS IT BLUE BONNET MARGARINE IS MADE BY NABISCO FOODS GROUP A UNIT OF RJR NABISCO HOLDINGS CORP IN A CHART ON MARGARINE SALES ACCOMPANYING A MARKETSCAN ARTICLE THURSDAY BLUE BONNET'S PARENT WAS MISIDENTIFIED AS KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS 9306240144 930624 WHO'S NEWS CHASE CORP CHASE CORP BRAINTREE MASS PETER R CHASE 45 YEARS OLD WAS NAMED TO THE ADDED POSITIONS OF CHIEF EXECUTIVE OFFICER AND DIRECTOR EFFECTIVE SEPT 1 MR CHASE IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF PROTECTIVE TAPES AND COATINGS AS CHIEF EXECUTIVE MR CHASE WILL SUCCEED WILFRED W CARTER 70 WHO IS RETIRING FROM THAT POSITION BUT WILL CONTINUE AS CHAIRMAN AS A DIRECTOR MR CHASE WILL FILL A VACANCY 9306240143 930624 INTERNATIONAL JAPAN AGREES TO LET FOREIGN COMPANIES MANAGE MORE OF PENSIONFUND MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE AUTHORITIES HAVE MADE AN IMPORTANT CONCESSION TOWARD OPENING THEIR FINANCIAL MARKETS TO FOREIGN COMPANIES BUT US NEGOTIATORS SAY THERE'S STILL A LOT LEFT TO BE DONE JAPAN AGREED TO LET FOREIGN PENSIONFUND COMPANIES MANAGE AS MUCH AS 12 OF ITS 90 TRILLIONYEN 814 BILLION PENSIONFUND MARKET ACCORDING TO INDIVIDUALS INVOLVED WITH THE TALKS FOREIGNERS ARE NOW ALLOWED A MAXIMUM OF 3 OF THE MARKET BUT HAVE ABOUT 1 JAPANESE OFFICIALS ALSO ARE EXPECTED TO LET FOREIGNERS MANAGE OLDER FUNDS NOT JUST NEW PENSION MONEY THE ACCESS TO MONEY ALREADY UNDER MANAGEMENT BY A JAPANESE COMPANY IS IMPORTANT BECAUSE IT COULD LEAD TO RAIDS BY FOREIGN COMPANIES ON CLUBBY JAPANESE BUSINESS RELATIONSHIPS ONE US OBSERVER OF THE TALKS CHARACTERIZED THIS AS AN IMPORTANT CONCEPTUAL BREAKTHROUGH FOR THE US IN THE CURRENT NEGOTIATIONS ON JAPANESE FINANCIAL MARKET LIBERALIZATION US OFFICIALS PLAYED DOWN ANY SUCCESS HOWEVER IT'S PROGRESS BUT WE'VE STILL GOT A LONG ROW TO HOE SAID US TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS LAWRENCE SUMMERS WE'VE GOT TO MAKE SURE THE FULL POTENTIAL IS REALIZED FOR FOREIGN INVESTMENT ADVISORY COMPANIES THAT COULD BE DIFFICULT FOREIGN MANAGERS STILL MUST OBEY JAPAN'S RESTRICTIVE GUIDELINES ON HOW MUCH OF TOTAL ASSETS CAN BE ALLOCATED TO STOCKS THE LOW LEVEL JAPAN ALLOWS FOR STOCK INVESTMENT PREVENTS OVERSEAS COMPANIES FROM USING THEIR BIGGEST SKILL AND THIS KEEPS THEIR MARKET SHARE LOW FOREIGN MANAGERS SAY JAPAN'S DECISION TO INCREASE THE FOREIGN SHARE OF PENSIONFUND MANAGEMENT WAS APPARENTLY UNAFFECTED BY THE DOMESTIC POLITICAL TURMOIL CURRENTLY ROCKING JAPAN ON THE ISSUES WE WERE DEALING WITH DECISIONS WERE MADE BEFORE LAST FRIDAY WHEN THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA SUFFERED A VOTE OF NO CONFIDENCE SAID ONE US OFFICIAL SEVERAL FOREIGN PENSIONFUND MANAGERS SAID THE INCREASE IN THE MAXIMUM AMOUNT OF PENSION FUND MONEY THEY CAN MANAGE WOULD LIKELY AMOUNT TO LESS THAN IT LOOKS THESE THINGS ARE NEVER AS GOOD AS THEY SEEM SAID FRANCIS PIKE PRESIDENT OF INVESCO MIM INVESTMENT TRUST MANAGEMENT CO IN JAPAN HE SAID YOU BREAK DOWN ONE WALL AND YOU FIND 10 WALLS BEHIND IT OTHER FRONTS THE US ALSO WANTS JAPAN TO GIVE FOREIGNERS GREATER ACCESS TO JAPANESE CORPORATE UNDERWRITING EASE CAPITALIZATION REQUIREMENTS ON FOREIGN MUTUAL FUNDS THAT WANT TO OPERATE IN JAPAN AND LIFT FOREIGN EXCHANGE RESTRICTIONS THAT MAKE IT DIFFICULT FOR JAPANESE COMPANIES TO SHIFT MONEY OVERSEAS THERE WASN'T ANY PROGRESS ON THESE FRONTS ACCORDING TO THE OBSERVER WE'RE GOING TO KEEP PUSHING A US OFFICIAL SAID WE'RE GOING TO BE PREPARED TO ACT ON THE PRINCIPLE THAT WE'RE PREPARED TO BACK UP EQUALITY OF OPPORTUNITY WITH ACCESS TO OUR MARKETS MR SUMMERS COMPARED THE NEGOTIATION PROCESS TO PEELING AN ONION YOU MAKE PROGRESS ONE LAYER AT A TIME THERE'S MORE TO BE DONE NEGOTIATIONS ARE EXPECTED TO CONTINUE THIS FALL US OFFICIALS ARE ALSO CONCERNED THAT JAPAN IS ABOUT TO PLACE NEW RESTRICTIONS ON THE USE OF STOCKDERIVATIVE PRODUCTS SUCH AS FUTURES AND OPTIONS WHICH HAVE BEEN PARTICULARLY LUCRATIVE FOR US COMPANIES IN JAPAN MANY JAPANESE SECURITIES INDUSTRY OFFICIALS BLAME THE COLLAPSE OF JAPAN'S STOCK MARKET ON DERIVATIVES MR SUMMERS SPOKE WEDNESDAY WITH OFFICIALS OF THE TOKYO STOCK EXCHANGE WHICH HAS LED THE ATTACK ON DERIVATIVES I STRESSED THE INNOVATIVE LEAD US FIRMS HAVE TAKEN IN THIS AREA HE SAID ADDING ANY KIND OF PUNITIVE REGULATION IS A SERIOUS PROBLEM US OFFICIALS ARE IN TOKYO EN MASSE THIS WEEK FOR VARIOUS TALKS AHEAD OF THE JULY 7 MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS BESIDES MR SUMMERS US TRADE REPRESENTATIVE MICKEY KANTOR IS ATTENDING THE TRADE TALKS TAKING PLACE BETWEEN REPRESENTATIVES OF CANADA THE EUROPEAN COMMUNITY JAPAN AND THE US REPRESENTATIVES OF THE US SECURITIES AND EXCHANGE COMMISSION ALSO PLAN TO VISIT THEIR COUNTERPARTS IN JAPAN'S FINANCE MINISTRY DAVID P HAMILTON CONTRIBUTED TO THIS ARTICLE 9306240142 930624 WHO'S NEWS JEFFERSON BANKSHARES INC JEFFERSON BANKSHARES INC CHARLOTTESVILLE VA LAWRENCE S EAGLEBURGER 62 YEARS OLD WAS NAMED A DIRECTOR AT THIS BANK HOLDING COMPANY INCREASING THE BOARD TO 14 MEMBERS MR EAGLEBURGER IS SENIOR FOREIGN POLICY ADVISER AT THE WASHINGTON DC LAW FIRM OF BAKER WORTHINGTON CROSSLEY STANSBERRY & WOOLF AND A FORMER US SECRETARY OF STATE 9306240141 930624 INTERNATIONAL ISRAELI BUSINESSES FEAR THAT AUTONOMY IN TERRITORIES MEANS MORE COMPETITION BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ISRAELI AND PALESTINIAN NEGOTIATORS DISCUSSING THE POSSIBILITY OF AUTONOMY FOR THE OCCUPIED WEST BANK AND GAZA STRIP HAVE CONCENTRATED ON THE POLITICAL IMPLICATIONS BUT ISRAELI BUSINESS EXECUTIVES THINK THE NEGOTIATIONS SHOULD ALSO INCLUDE THE ECONOMIC IMPACT OF AUTONOMY FOR THE OCCUPIED LANDS WHICH THEY SAY COULD BE JUST AS DISRUPTIVE EVEN WITHOUT AUTONOMY PRODUCTS FROM THE TERRITORIES ALREADY AFFECT ISRAEL'S ECONOMY ELI GUR PRESIDENT OF BRILL SHOE INDUSTRIES LTD ENCOUNTERS THE EFFECTS EVERY TWO WEEKS WHEN HE HEADS FOR THE DISCOUNT SHOE DISTRICT IN SOUTH TEL AVIV TO CHECK OUT THE COMPETITION CONSUMERS PAY 50 TO 70 LESS THERE BECAUSE THE SHOES WERE ALL MADE IN THE ISRAELIOCCUPIED WEST BANK RATHER THAN IN A TEL AVIV FACTORY LIKE MR GUR'S ALREADY 20 OF THE SHOES BOUGHT IN ISRAEL ARE MADE IN THE WEST BANK CITIES OF HEBRON OR NABLUS AND ONCE THE PALESTINIANS HAVE AUTONOMY THE SITUATION COULD GET EVEN WORSE SAYS MR GUR WHOSE COMPANY HAD 8 MILLION IN SALES LAST YEAR THEIR LABOR COSTS ARE LOWER THEY DON'T PAY TAXES THEY DON'T PAY THEIR WORKERS SOCIAL BENEFITS THEY USE CHEAPER MATERIALS IT'S HARD TO COMPETE RECENTLY PUBLISHED DATA BY THE ISRAEL MANUFACTURERS ASSOCIATION FOUND THAT AN AGREEMENT ON PALESTINIAN SELFRULE IN THE OCCUPIED TERRITORIES MAY HARM ISRAELI INDUSTRY ZE'EV FINK CHAIRMAN OF THE GENERAL INDUSTRY SECTION WHICH RAN THE STUDY SAYS PALESTINIAN INDUSTRIAL PRODUCTION IS ALREADY 5 TO 7 OF TOTAL ISRAELI PRODUCTION FOR PRODUCTS SUCH AS SHOES PLASTICS AND TEXTILES MR FINK ESTIMATES IT'S AS HIGH AS 15 IN SOME AREAS PALESTINIAN COMPANIES AREN'T JUST COMPETING WITH ISRAELIS THEY'RE BEATING THEM HE SAYS IF THE GOVERNMENT DOESN'T TAKE INTO ACCOUNT THE ECONOMIC IMPLICATIONS OF AUTONOMY WE COULD END UP WITH THOUSANDS MORE PEOPLE BEING UNEMPLOYED AT A NEWS CONFERENCE YESTERDAY ISRAELI AND PALESTINIAN ECONOMISTS PRESENTED THE FIRST JOINT ISRAELIPALESTINIANJORDANIAN BLUEPRINT FOR THE ECONOMIC TRANSITION TO AUTONOMY THE ECONOMISTS WHO SPENT 18 MONTHS ON THE REPORT UNDER THE AUSPICES OF HARVARD UNIVERSITY'S INSTITUTE FOR SOCIAL AND ECONOMIC POLICY IN THE MIDDLE EAST CONCLUDED THAT ISRAEL MUST LIFT RESTRICTIONS ON PALESTINIAN GOODS ENTERING ISRAEL EVEN FOR FARM PRODUCTS THAT ENJOY A STRONG COMPETITIVE ADVANTAGE WHILE THE REPORT CONCLUDES THAT THE ISRAELI ECONOMY WILL BENEFIT OVERALL FROM AUTONOMY IN THE FORM OF INCREASED INVESTMENTS AND THE OPENING OF NEW MARKETS ANNA D KARASIK ASSOCIATE DIRECTOR OF THE HARVARD INSTITUTE SAYS THE REPORT'S CONCLUSIONS MEAN SOME ISRAELI INDUSTRIES WILL HAVE TO PAY A HIGHER PRICE FOR PEACE ISRAELI INDUSTRIES ALREADY FEELING THE SQUEEZE OF PALESTINIAN COMPETITION INCLUDE TEXTILES CLOTHING AND LEATHER FOR NOW THE WEST BANK AND GAZA ECONOMIES ARE TINY IN COMPARISON WITH THAT OF ISRAEL ISRAEL'S GROSS NATIONAL PRODUCT THE VALUE OF ALL THE GOODS AND SERVICES IT PRODUCES IS ABOUT 60 BILLION JORDAN'S IS 6 BILLION AND THE OCCUPIED TERRITORIES ABOUT 3 BILLION INCLUDING 1 BILLION RESULTING FROM SERVICES AND GOODS MAINLY LABOR EXPORTED TO ISRAEL STILL SINCE THE ISRAELI GOVERNMENT EASED RESTRICTIONS ON NEW BUSINESSES IN THE OCCUPIED TERRITORIES THERE HAS BEEN A BURST OF ECONOMIC ACTIVITY THERE PALESTINIAN BUSINESSES HAVE CAPITALIZED ON THEIR SIGNIFICANTLY LOWER WAGE LEVELS TO MAKE AND SELL CONSUMER PRODUCTS FAR MORE CHEAPLY MOST PALESTINIAN WORKERS MAKE 500 SHEKELS 181 A MONTH WHILE ISRAELI WORKERS TYPICALLY EARN 3000 SHEKELS ISRAEL'S DECISION IN EARLY APRIL TO BAR THE 110000 PALESTINIANS IN THE OCCUPIED TERRITORIES WHO USED TO WORK IN ISRAEL HAS CURTAILED BUT NOT STOPPED THE CHEAPER GOODS FROM COMING ACROSS THE BORDER THE WORKER BAN WAS IMPOSED AFTER A SERIES OF VIOLENT ATTACKS AGAINST ISRAELIS CONSUMERS OFTEN DON'T EVEN REALIZE THEY'RE BUYING PRODUCTS MADE IN THE TERRITORIES MANY PALESTINIAN COMPANIES WILL WRITE MADE IN ISRAEL' ON THEIR PRODUCTS IN ORDER TO ATTRACT ISRAELI CUSTOMERS ON CANDY BARS THEY'LL WRITE BUY BLUE AND WHITE' THE COLORS OF THE ISRAELI FLAG AND ONLY USE HEBREW WRITING OR EVEN PUT IMITATION KOSHER SYMBOLS ON FOOD SAYS GIL FEILER AN EXPERT IN MIDDLE EASTERN ECONOMICS AND THE HEAD OF INFO PRODRESEARCH MIDDLE EAST LTD AN ECONOMIC RESEARCH AND CONSULTING FIRM IN TEL AVIV FARHAT AHMAD SIAG DIRECTOR OF TOSETTI SHOE CO IN HEBRON THE WEST BANK'S LARGEST SHOE FACTORY SAYS 75 OF HIS BUSINESS COMES FROM SALES IN ISRAEL TOSETTI WHICH IS OWNED AND RUN BY MR SIAG'S FAMILY HAS SIGNIFICANTLY LOWER COSTS THAN ISRAELI FACTORIES BUSINESSMEN SAY THAT FOR ISRAELI COMPANIES TO COMPETE AN AUTONOMY AGREEMENT NEEDS TO CREATE A LEVEL PLAYING FIELD PALESTINIAN TAXES SHOULD BE EQUALIZED WITH THOSE IN ISRAEL AND PALESTINIAN PRODUCTS SHOULD HAVE TO MEET THE SAME QUALITY STANDARDS AND SPECIFICATIONS THEY INSIST THESE IDEAS ARE REFLECTED IN THE HARVARD REPORT WHICH CALLS FOR FREE TRADE IN GOODS SERVICES AND CAPITAL BETWEEN ISRAEL AND THE TERRITORIES AS WELL AS COORDINATION ON TAXES AND CUSTOMS BUT THE REPORT ARGUES THAT THE PALESTINIANS' LOWER STANDARD OF LIVING REQUIRES ISRAEL TO TAKE THE FIRST STEP IN CREATING A CUSTOMS UNION BETWEEN THE TWO SIDES BY REDUCING ISRAELI TARIFFS TO PALESTINIAN LEVELS OTHERWISE THE REPORT PREDICTS AUTONOMY WILL GIVE RISE TO SMUGGLING THE SHIFTING OF BUSINESS ACTIVITIES AND TAX EVASION SO FAR PALESTINIAN LEADERS HAVE REFUSED TO ADD THE ECONOMY TO THE AGENDA AT THE REGIONAL PEACE NEGOTIATIONS ARGUING THAT IT'S FAR MORE IMPORTANT TO FIRST REACH A POLITICAL SETTLEMENT BUT PALESTINIAN AND ISRAELI BUSINESS LEADERS HAVE MET INFORMALLY TO EXCHANGE IDEAS AND EXAMINE THE POSSIBILITY OF JOINT VENTURES IN THE LONG TERM ISRAEL CAN GAIN SUBSTANTIALLY SAYS LEONARD J HAUSMAN DIRECTOR OF THE HARVARD INSTITUTE ESPECIALLY WHEN PALESTINIAN BUSINESS PARTNERS HELP OPEN THE DOOR FOR ISRAELI FIRMS HOPING TO ENTER MARKETS IN THE MIDDLE EAST 9306240140 930624 GREAT LAKES CHEMICAL CORP WEST LAFAYETTE IND GREAT LAKES CHEMICAL CORP AGREED TO SELL CERTAIN ASSETS OF ITS LUBRICANT ADDITIVES BUSINESS TO LUBRIZOL CORP TERMS WEREN'T DISCLOSED A SPOKESMAN SAID THE SALE OF GREAT LAKES CHEMICAL FRANCE SA WHICH HAD REVENUE OF ABOUT 60 MILLION FOR 1992 WAS PART OF A STRATEGY TO FOCUS OUR INTEREST ON THE PLASTICS ADDITIVES PROCESS THE COMPANY SAID THE TRANSACTION WHICH MAY BE SUBJECT TO GOVERNMENTAL APPROVAL IN ONE OR MORE EUROPEAN COUNTRIES SHOULD BE COMPLETED SOMETIME IN THE THIRD QUARTER LUBRIZOL WICKLIFFE OHIO IS A LEADING SUPPLIER OF LUBRICANT ADDITIVES 9306240139 930624 CORESTATES SETS ACQUISITION PHILADELPHIA CORESTATES FINANCIAL CORP A BANK HOLDING COMPANY SAID IT AGREED TO ACQUIRE INTER COMMUNITY BANCORP OF SPRINGFIELD NJ FOR ABOUT 16 MILLION INTER COMMUNITY HAS ASSETS OF 1257 MILLION CORESTATES WITH 229 BILLION IN ASSETS OPERATES IN SOUTHEASTERN AND SOUTH CENTRAL PENNSYLVANIA AND NEW JERSEY 9306240138 930624 WHO'S NEWS DAYTON HUDSON CORP DAYTON HUDSON CORP MINNEAPOLIS PAUL W SAUSER 45YEAROLD SENIOR VICE PRESIDENT MERCHANDISING OF THE RETAILER'S TARGET DISCOUNT CHAIN WAS NAMED PRESIDENT AND TO THE NEW POST OF CHIEF OPERATING OFFICER OF THE COMPANY'S MERVYN'S DEPARTMENT STORE DIVISION SUCCEEDING JOSEPH C VESCE 44 CHIEF EXECUTIVE OFFICER WHO WAS NAMED CHAIRMAN A NEW POST 9306240137 930624 WHO'S NEWS NIAGARA MOHAWK POWER CORP NIAGARA MOHAWK POWER CORP SYRACUSE NY DARLENE D KERR 41 YEARS OLD WAS NAMED VICE PRESIDENT OF ELECTRIC CUSTOMER SERVICE AT THIS ELECTRIC AND NATURAL GAS UTILITY MS KERR HAS ALSO BEEN DESIGNATED TO BECOME SENIOR VICE PRESIDENT IN JANUARY 1994 SUCCEEDING JOHN P HENNESSEY 55 WHO WILL RETIRE AT THE END OF THE YEAR MS KERR HAD BEEN VICE PRESIDENT OF GAS MARKETING AND RATES FOR THE COMPANY 9306240136 930624 WHO'S NEWS FIRST FIDELITY BANCORP FIRST FIDELITY BANCORP LAWRENCEVILLE NJ MICHAEL A GALLAGHER 45 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT AND HEAD OF THE CORPORATE OPERATIONS AND SYSTEMS BUSINESS OF THIS BANK HOLDING COMPANY MR GALLAGHER WHO HAD BEEN SENIOR VICE PRESIDENT AND HEAD OF STAFF SERVICES A DIVISION OF THE CORPORATE OPERATIONS AND SYSTEMS BUSINESS SUCCEEDS DONALD PARCELLS 50 WHO WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT AND HEAD OF THE COMPANY'S CONSUMER BANKING BUSINESS 9306240134 930624 SEAGATE TECHNOLOGY IN PACT SCOTTS VALLEY CALIF SEAGATE TECHNOLOGY SAID IT WON A PURCHASE AGREEMENT TO SUPPLY APPLE COMPUTER INC WITH HIGHPERFORMANCE 35INCH HARD DISK DRIVES APPLE WILL INTEGRATE THE SEAGATE PRODUCTS THE ST3600N AND ST11200N INTO ITS HIGHPERFORMANCE AND MULTIUSER COMPUTER SYSTEMS SEAGATE SAID SEAGATE A MAKER OF DATA STORAGE PRODUCTS FOR COMPUTERS SAID THE PACT SIGNALS A STRATEGIC RELATIONSHIP FOR SEAGATE AS IT PARALLELS OUR INTENT TO EXPAND OUR OEM BUSINESS 9306240133 930624 FINANCING BUSINESS SIGNET BANKING CORP SIGNET BANKING CORP'S BOARD DECLARED A 2FOR1 STOCK SPLIT EFFECTIVE JULY 27 TO STOCK OF RECORD JULY 6 THE REGIONAL BANK WHICH IS BASED IN RICHMOND VA IN APRIL INCREASED ITS DIVIDEND 33 TO 160 A SHARE ANNUALLY THE POSTSPLIT DIVIDEND WILL BE 80 CENTS 9306240132 930624 SUN CO SELLS INTERESTS PHILADELPHIA SUN CO PURSUING ITS STRATEGY TO DROP INTERNATIONAL OIL AND GAS EXPLORATION COMPLETED THE SALE OF THE COMPANY'S INTERESTS IN THREE EXPLORATORY BLOCKS IN THE GULF OF THAILAND TO A UNIT OF BRITISH GAS PLC THE PRICE WASN'T DISCLOSED 9306240131 930624 TECHNOLOGY NEW LIVER SURGERY WITH CMS ACCUPROBE HAS FEWER SIDE EFFECTS ROCKVILLE MD CRYOMEDICAL SERVICES INC SAID A NEW MINIMALLY INVASIVE LIVER SURGERY WAS PERFORMED FOR THE FIRST TIME RECENTLY USING THE COMPANY'S TECHNOLOGY A MAKER OF LOWTEMPERATURE MEDICAL DEVICES CRYOMEDICAL SAID A LAPAROSCOPIC LIVER CRYOSURGICAL PROCEDURE WAS PERFORMED JUNE 10 ON A LIVERCANCER PATIENT AT DENVER'S UNIVERSITY OF COLORADO HEALTH SCIENCES CENTER USING THE CMS ACCUPROBE CRYOSURGICAL SYSTEM LAPAROSCOPIC CRYOSURGERY USES A SCOPE INSERTED THROUGH A SMALL INCISION TO GUIDE A PROBE TO THE TUMOR SITE THE PROBE FREEZES AND DESTROYS THE TUMOR USING SUPERCOOLED LIQUID NITROGEN THE PROCEDURE REDUCES SIDE EFFECTS ASSOCIATED WITH TRADITIONAL SURGICAL METHODS 9306240130 930624 WHO'S NEWS STONE & WEBSTER INC STONE & WEBSTER INC NEW YORK KENNETH F REINSCHMIDT 55 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THIS ENGINEERING AND CONSTRUCTION COMPANY MR REINSCHMIDT WHOSE POSITION IS NEWLY CREATED WILL CONTINUE AS PRESIDENT OF THE STONE & WEBSTER ADVANCED SYSTEMS DEVELOPMENT SERVICES INC UNIT 9306240129 930624 CITICORP CHASE SEEK TO BE FIRST US BANKS LICENSED BY RUSSIA NEW YORK CITICORP AND CHASE MANHATTAN CORP APPLIED FOR BANKING LICENSES IN RUSSIA HOPING TO TAKE ADVANTAGE OF THE INCREASING NUMBER OF US BUSINESSES ACTIVE THERE THE TWO BANKS WHICH CURRENTLY HAVE REPRESENTATIVE OFFICES IN MOSCOW WOULD BE THE FIRST US BANKS LICENSED IN RUSSIA FOLLOWING A HANDFUL OF FOREIGN BANKS INTERNATIONAL BANKS HAVE ALSO SET UP OFFICES IN OTHER EUROPEAN COUNTRIES SUCH AS HUNGARY CZECH REPUBLIC AND POLAND A SPOKESMAN FOR CITICORP SAID IT WOULD PROVIDE TRADITIONAL CROSSBORDER BANKING BUSINESS TO US AND EUROPEAN CORPORATE CLIENTS BUT HE SAID THE BANK WOULD ALSO LOOK TO OFFER LETTERS OF CREDIT AND OTHER CROSSBORDER BANKING ACTIVITIES TO RUSSIAN COMPANIES EXPORTING GOODS AND SERVICES CHASE MANHATTAN PLANS SIMILAR ACTIVITIES IN RUSSIA AND OTHER FORMER SOVIET REPUBLICS IT RECENTLY ADVISED KAZAKHSTAN IN CREATING AN OIL CONSORTIUM TO DEVELOP THE COUNTRY'S RESERVES IN THE CASPIAN SEA 9306240128 930624 LETTERS TO THE EDITOR SOME DATA TO COOL GLOBAL WARMING DEBATE THERE ARE INCREASING DOUBTS AMONG SCIENTISTS THAT GLOBAL WARMING IS A REAL THREAT TO OUR PLANET WHICH RAISES A QUESTION WHETHER THE RELATIVELY HIGH ACTUAL RISK RANKING OF GLOBAL WARMING IS REALLY WARRANTED EPA SPENDING IS OFF TARGET STUDY SAYS MAY 24 TO THE EXTENT THAT CARBON DIOXIDE IS THE MAJOR GREENHOUSE GAS SAID TO BE ASSOCIATED WITH GLOBAL WARMING CARBONDIOXIDE EMISSIONS NEED TO BE EXAMINED IN A REALISTIC PERSPECTIVE THE POTENTIAL THAT CARBON DIOXIDE FROM FOSSIL FUEL COMBUSTION MIGHT ENHANCE GREENHOUSE WARMING IS BADLY DISTORTED BECAUSE THE EMISSIONS OF CARBON DIOXIDE FROM COMBUSTION ARE SO SMALL IN RELATION TO THOSE FROM NATURAL SOURCES AND IN RELATION TO THE CARBONDIOXIDE CONTENT OF THE ATMOSPHERE THE BEST ESTIMATES OF MANMADE EMISSIONS OF CARBON DIOXIDE FROM COMBUSTION OF COAL OIL GAS AND WOOD ARE LESS THAN SIX BILLION METRIC TONS A YEAR GLOBALLY WITH ABOUT 15 BILLION METRIC TONS GENERATED ANNUALLY IN THE US ANNUAL EMISSIONS OF CARBON DIOXIDE FROM NATURAL SOURCES TOTAL MORE THAN 200 BILLION METRIC TONS INCLUDING THOSE FROM LIVING ANIMALS DECAYING DEAD ANIMALS AND PLANTS MICROORGANISMS AND INSECTS IN THE SOIL AND FROM SEA LIFE THE TOTAL BURDEN OF CARBON DIOXIDE RESIDING IN THE ATMOSPHERE IS AROUND 725 BILLION TO 750 BILLION METRIC TONS THIS IS FAIRLY WELL STABILIZED BY A RESERVOIR OF ANOTHER 37000 BILLION METRIC TONS OF INORGANIC CARBON COMPOUNDS IN THE SEAS AND OCEANS WITH THE FULL CARBON DIOXIDE BUDGET SHOWING US EMISSIONS SO TRIVIAL IN RELATION TO THE EMISSIONS FROM OTHER SOURCES AND THE RESERVOIR IN THE ATMOSPHERE THERE IS LITTLE BASIS FOR CLASSIFYING GLOBAL WARMING AS A HIGHRISK ECOLOGICAL HAZARD THERE IS NO INDICATION THAT ANY ACTIONS TAKEN BY THE ENVIRONMENTAL PROTECTION AGENCY COULD SIGNIFICANTLY ALTER THE AMOUNTS OF ATMOSPHERIC CARBON DIOXIDE VICE PRESIDENT GORE IS REPORTED TO URGE PASSAGE OF THE ENERGY TAX TO HELP REDUCE CARBONDIOXIDE EMISSIONS BY 25 MILLION TONS ONEFORTIETH OF A BILLION METRIC TONS A YEAR BEFORE THE END OF THIS DECADE UNTIL THE EPA DOCUMENTS THE HAZARD ACTUALLY ASSOCIATED WITH CARBONDIOXIDE EMISSIONS BY THIS COUNTRY THERE SEEMS LITTLE BASIS FOR CLASSIFYING GLOBAL WARMING AS A HIGHRISK HAZARD 9306240126 930624 INTERNATIONAL CHINA MAKES ARRESTS OVER FINANCIAL SCAMS A WALL STREET JOURNAL NEWS ROUNDUP CHINA'S NEWS MEDIA HAVE REPORTED TWO CASES OF MASSIVE ALLEGED FINANCIAL FRAUD THAT INDICATE ONCE AGAIN THAT THE SHIFT FROM A PLANNED ECONOMY TO A BOOMING FREEMARKET ONE HAS CREATED WIDE VISTAS FOR ABUSE XINHUA CHINA'S OFFICIAL NEWS AGENCY REPORTED THAT AN EXECUTIVE OF A BEIJING HIGHTECHNOLOGY COMPANY HAD BEEN ARRESTED AND CHARGED WITH ILLEGALLY RAISING 1 BILLION YUAN 1749 MILLION FROM AS MANY AS 100000 INVESTORS IN AN ALLEGEDLY FRAUDULENT BOND SCHEME SHEN TAIFU GENERAL MANAGER OF GREAT WALL MACHINERY & ELECTRONICS SCIENTIFIC & TECHNOLOGICAL INDUSTRY CO OFFERED A 24 RETURN ON HIS COMPANY'S BONDS WHICH ALLEGEDLY WERE ISSUED WITHOUT GOVERNMENT OR BANKING APPROVAL XINHUA SAID A WEEK EARLIER THE ENGLISHLANGUAGE CHINA DAILY REPORTED THAT THE AGRICULTURAL BANK OF CHINA HAD WARNED BANKERS AROUND THE WORLD THAT IT WOULDN'T HONOR 200 FRAUDULENT LETTERS OF CREDIT TOTALING MORE THAN 10 BILLION THE BANK SAID THE LETTERS WERE ISSUED APRIL 1 IN THE NAME OF A FICTITIOUS INTERNATIONAL FINANCE DEPARTMENT OF ITS BRANCH IN HEBEI PROVINCE LAST WEEK'S ANNOUNCEMENT IDENTIFIED TWO MEN ARRESTED IN THE ALLEGED FRAUD AS AMERICAN CHINESE RAYMOND LEE AND FRANCISCO HUNG MOY OF UNITED ASIA GROUP CORP OF NEW YORK LETTERS OF CREDIT ARE DRAFTED BY BANKS ON BEHALF OF IMPORTERS TO PAY FOR GOODS THEY IMPORT AGRICULTURAL BANK SAID UNITED ASIA GROUP SECURED THE LETTERS OF CREDIT BY USING AS COLLATERAL A 10 BILLION LETTER OF CREDIT DRAWN ON A FICTITIOUS UNITED NATIONAL REPUBLIC BANK IN RUSSIA THE 200 LETTERS OF CREDIT WERE THEN ISSUED FOR UNITED ASIA GROUP TO SHERWOOD INVESTMENTS BAHAMAS LTD THREE BANKS IN NEW YORK THAT SPECIALIZE IN LETTERS OF CREDIT WERE UNAWARE OF THE ALLEGED SCAM AS WERE THE US EXPORTIMPORT BANK AND THE STATE DEPARTMENT BANKERS SAY A COMMON LETTEROFCREDIT FRAUD INVOLVES USING THEM TO ATTRACT INVESTORS INTO A TRANSACTION THEN FLEEING WITH THE MONEY FRAUDULENT LETTERS ALSO ARE USED TO PERSUADE SUPPLIERS TO SHIP GOODS UNITED ASIA GROUP COULDN'T BE LOCATED IN NEW YORK TELEPHONE CALLS TO A COMPANY BY THAT NAME IN SAN FRANCISCO WENT UNANSWERED CHINA ADMINISTERS SEVERE PUNISHMENT OFTEN THE DEATH PENALTY TO PEOPLE CONVICTED OF WHITECOLLAR CRIMES 9306240125 930624 CORNING TO ACQUIRE COSTAR IN STOCK DEAL FOR 180 MILLION BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL CORNING INC AGREED TO ACQUIRE COSTAR CORP FOR ABOUT 180 MILLION IN STOCK IN A MOVE THAT WILL BOOST CORNING'S SCIENTIFIC LABORATORY PRODUCTS BUSINESS SHAREHOLDERS OF COSTAR A PLASTICSLABWARE MAKER WITH 1992 SALES OF 75 MILLION WOULD RECEIVE 25 IN CORNING COMMON STOCK FOR EACH COSTAR SHARE THE FINAL PRICE IS SUBJECT TO ADJUSTMENT IF CORNING'S STOCK PRICE IS BELOW 3060 OR ABOVE 3570 BUT THE MAXIMUM VALUE IS 2737 A COSTAR SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CORNING CLOSED DOWN 25 CENTS AT 34375 WHILE COSTAR WAS QUOTED AT 23625 UP 5875 IN LATE OVERTHECOUNTER TRADING CORNING BASED IN CORNING NY IS PAYING A PREMIUM PRICE FOR THE CAMBRIDGE MASS COMPANY MORE THAN DOUBLE COSTAR'S ANNUAL SALES AND 25 TIMES ITS ESTIMATED 1993 NET INCOME OF 1 A SHARE IN CONTRAST CORNING IS SELLING AT ABOUT 19 TIMES PRUDENTIAL SECURITIES RESEARCH 1993 EARNINGS ESTIMATES OF 185 A SHARE CORNING SAID THE ACQUISITION EXPECTED TO BE TAXFREE WILL DILUTE EARNINGS BY A FEW PENNIES BECAUSE OF FEES FOR THE DEAL I'M NOT WILD ABOUT IT SAID PRUDENTIAL ANALYST B ALEX HENDERSON COSTAR LOOKS LIKE A GOOD COMPANY IT HAS HAD A GOOD TRACK RECORD BUT IT'S NOT CHEAP BUT HARRY E WELLS ANALYST AT ADAMS HARKNESS & HILL A BOSTON RESEARCH FIRM WAS MORE BULLISH SAYING IT MAKES GOOD SENSE GIVEN THE SYNERGY WITH CORNING'S PLASTICS LABWARE BUSINESS CORNING MAKES BOTH PLASTIC AND GLASS LABWARE BUT THE PLASTICS COMPONENT IS MORE PROFITABLE AND HAS GREATER GROWTH POTENTIAL CORNING DECLINED TO SPECIFY THE SIZE OF ITS LABWARE BUSINESS BUT SAID COSTAR'S BUSINESS WOULD BOOST SALES OF ITS GLASS PLASTICS AND LABWARE GROUP BY 30 COSTAR EARNED 61 MILLION OR 85 CENTS A SHARE LAST YEAR CORNING INTENDS TO RETAIN COSTAR'S 600 WORKERS ALTHOUGH ITS PRESIDENT RICHARD MORNINGSTAR IS TAKING A JOB WITH THE CLINTON ADMINISTRATION COSTAR WILL OPERATE AS A CORNING SUBSIDIARY THE TRANSACTION IS SUBJECT TO NEGOTIATION OF A DEFINITIVE MERGER AGREEMENT AND APPROVAL BY EACH COMPANY'S BOARD AND COSTAR'S STOCKHOLDERS CORNING WHICH COMPETES IN SPECIALTY MATERIALS COMMUNICATIONS CONSUMER PRODUCTS AND LABORATORY SERVICES REPORTED 1992 REVENUE OF 37 BILLION IT HAD A LOSS OF 126 MILLION OR EIGHT CENTS A SHARE INCLUDING A 2866 MILLION CHARGE FOR AN ACCOUNTING CHANGE 9306240124 930624 TECHNOLOGY & SCIENCE GENENTECH PATENTS GENE TECHNOLOGY STOKING BATTLE OVER GROWTH HORMONE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO GENENTECH INC SAID IT WON A BROAD PATENT COVERING BASIC GENESPLICING TECHNOLOGY AND PROMPTLY FIRED ANOTHER SALVO IN ITS PATENT WAR WITH ELI LILLY & CO SINCE 1987 GENENTECH HAS BEEN LOCKED IN LITIGATION WITH INDIANAPOLISBASED LILLY OVER ITS ALLEGED INFRINGEMENT OF GENENTECH'S PATENT COVERING HUMAN GROWTH HORMONE TO DATE GENENTECH HAS CHARGED LILLY WITH INFRINGING 13 SUCH PATENTS THE NEW PATENT ANNOUNCED YESTERDAY AND THE SUBSEQUENT LAWSUIT EXPAND THAT PATENT ARSENAL TO 14 HUMAN GROWTH HORMONE INJECTIONS ARE WIDELY USED AS AN APPROVED TREATMENT FOR DWARFISM THAT IS CAUSED BY A DEFECT IN THE PITUITARY GLAND ON AN UNAPPROVED BASIS THE INJECTIONS HAVE ATTRACTED THE INTEREST OF BODYBUILDERS AND OTHERS WANTING TO ENHANCE THEIR HEIGHT IN 1992 GENENTECH SOLD 2059 MILLION OF THE HORMONE UNDER ITS BRAND NAME PROTROPIN RECOMBINANT DNA THE NEW PATENT COVERS THE PRODUCTION OF MEDICALLY USEFUL PROTEINS BY RECOMBINANT DNA TECHNOLOGY ITS CLAIMS ARE DERIVED FROM RESEARCH PERFORMED IN THE LATE 1970S BY KEIICHI ITAKURA AND ARTHUR D RIGGS AT THE CITY OF HOPE NATIONAL MEDICAL CENTER IN THE LOS ANGELES AREA THE LAWSUIT WAS FILED BY GENENTECH IN FEDERAL COURT IN SAN FRANCISCO EARLIER LITIGATION ON THE GROWTH HORMONE BATTLE HAS BEEN MOVED TO FEDERAL COURT IN INDIANAPOLIS GENENTECH COUNSEL SAID I THINK THE ISSUANCE OF THIS NEW PATENT SUBSTANTIALLY IMPROVES OUR CHANCE OF SUCCESS IN THE LAWSUIT AGAINST ELI LILLY SAID SEAN JOHNSTON A PATENT ATTORNEY WITH GENENTECH THE FACT THAT IT IS A VERY PIONEERING INVENTION AND THE CLAIM COVERS BASIC PROCESSES ALL ARE FACTORS THAT LEAD US TO BELIEVE IT ENHANCES OUR LITIGATION POSITION GENENTECH HASN'T FIXED THE AMOUNT OF DAMAGES IT WILL SEEK SHOULD IT PREVAIL IN COURT ONE POINT OF LEGAL CONTENTION SO FAR HAS BEEN THE QUESTION OF WHOSE GROWTH IS BETTER OR MORE HUMAN GENENTECH'S PROTROPIN MADE FROM GENESPLICED BACTERIA CONTAINS AN EXTRA AMINO ACID CALLED METHIONINE THAT ISN'T FOUND IN NATURALLY OCCURRING HUMAN GROWTH HORMONE LILLY'S HUMATROPE LACKS THE EXTRA AMINO ACID AND LILLY HAS CITED THIS DIFFERENCE IN ITS LEGAL COUNTERCLAIMS AGAINST GENENTECH GENENTECH FOR ITS PART CONTENDS THAT THE DIFFERENCES IN MOLECULAR STRUCTURE DON'T PROTECT LILLY AGAINST A CHARGE OF INFRINGEMENT GENENTECH IS DEVELOPING A NEW VERSION OF HUMAN GROWTH HORMONE CALLED NUTROPIN WHICH THE COMPANY SAYS IS IDENTICAL TO THE NATURAL VERSION 9306240123 930624 MARKETING FOOTWEAR FAD MAKES NIKE REEBOK RUN FOR THEIR MONEY BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CHER LUKE PERRY AND MADONNA WEAR THEM AND ARNOLD SCHWARZENEGGER WAS SEEN WALKING OUT OF A STORE IN SANTA MONICA CALIF WITH A PAIR THEY ARE DR MARTENS SHOES AND BOOTS IMPORTED FROM BRITAIN AND THE LATEST CRAZE IN FOOTWEAR FASHION IN ADDITION TO SUPPORTING STARS' ARCHES AND HELPING TO DEFINE THE GRUNGE LOOK AMONG THOSE AGED 25 AND UNDER THE SHOE LINE POPULARLY KNOWN AS DOC MARTENS OR DOCS IS DOING ONE MORE THING FOR US CULTURE STOMPING ON SNEAKER SALES ANALYSTS AND INDUSTRY OFFICIALS SAY COMPETITION FROM DOC MARTENS AND A HOST OF LOOKALIKES IS A BIG PART OF THE REASON FOR DOWNBEAT EARNINGS FORECASTS LAST WEEK FROM NIKE INC AND REEBOK INTERNATIONAL LTD THE TWO LEADING SNEAKER MAKERS THE FORECASTS HAVE SENT THE COMPANIES' STOCKS TUMBLING AND HAVE SHIFTED THINKING ABOUT WHAT YOUNG SHOPPERS WANT TO BUY KIDS ARE STEPPING OUT OF SNEAKERS AND INTO THESE SHOES FOR A NIGHT OUT ON THE TOWN SAYS JOE CHICHELO DIVISIONAL MERCHANDISE MANAGER FOR SPORTS AUTHORITY THE SPORTING GOODS SUBSIDIARY OF KMART CORP REFERRING TO NIKE'S POPULAR AIR JORDAN SNEAKERS GARY JACOBSON OF KIDDER PEABODY & CO ADDS NOT EVERYONE THESE DAYS IS A MICHAEL JORDAN WANNABE DOC MARTENS ARE MADE OF STIFF LEATHER FEATURE AN AIRCUSHION SOLE MOST OFTEN COME IN BLACK AND ARE SERIOUSLOOKING AND HEAVY THE ANTITHESIS OF THE LITHE AND ATHLETIC LOOK THAT NIKE AND REEBOK REPRESENT THE SHOES AND BOOTS RETAIL FOR 90 TO 150 SALES OF DOC MARTENS ARE STILL WAY BEHIND BRANDED SNEAKER SALES WHICH LAST YEAR AMOUNTED TO ABOUT 6 BILLION IN THE US BUT INDUSTRY OFFICIALS ESTIMATE THAT DOCS' US SALES HAVE DOUBLED IN THE PAST YEAR TO ABOUT 150000 PAIRS A MONTH BILL BURDEN OPERATIONS MANAGER OF LONDON UNDERGROUND INTERNATIONAL A US DISTRIBUTOR BASED IN PORTLAND ORE FORECASTS THAT 1993 SALES WILL BE ABOUT 150 MILLION HITEC SPORTS USA WHICH MAKES DOC MARTENSLIKE BOOTS ESTIMATES ITS SALES WILL DOUBLE TO 60 MILLION IN ANOTHER SIGN THAT THE FOOTWEAR HAS ARRIVED SPORTS AUTHORITY AND OTHER ATHLETIC FOOTWEAR SHOPS ARE BEGINNING TO SELL DOC MARTENS AND HITEC MODELS ALONGSIDE SNEAKERS VENDORS INCLUDE ATHLETE'S FOOT OSHMANN'S BIG FIVE EDISON BROS AND GENESCO CHAINS WE WANT TO BE ONESTOP SHOPPING FOR THE FASHIONCONSCIOUS CONSUMER SAYS SPORTS AUTHORITY'S MR CHICHELO DOC MARTENS ARE ALSO SOLD AT BLOOMINGDALE'S DEPARTMENT STORES THE FOOTWEAR WHICH WAS INVENTED SHORTLY AFTER WORLD WAR II BY A GERMAN DOCTOR WITH FOOT PROBLEMS HAS BEEN A COUNTERCULTURAL FAVORITE FOR AWHILE ELTON JOHN EVEN WORE A PAIR IN THE MOVIE VERSION OF TOMMY IN 1975 BUT DOCS DIDN'T MAKE THE TRANSITION FROM THE UNDERGROUND TO THE MALL UNTIL RECENTLY WHEN PAUL KAUFMAN ONE OF THE FIRST US DISTRIBUTORS SHOWED UP AT A TRADE SHOW IN THE EARLY 1980S TO SELL DOC MARTENS PEOPLE WOULD LAUGH AT US HE RECALLS NOW THEY WANT TO COPY US THE GRUNGE LOOK INCLUDING THE SHOES SPRINTED INTO VOGUE AS SEATTLE MUSICIANS LIKE NIRVANA ALICE IN CHAINS AND PEARL JAM ROSE TO FAME IN THE PAST YEAR AND A HALF HITEC'S MIDCALF BOOTS WERE ORIGINALLY MARKETED TO POLICE AND SOLDIERS BUT THEY BECAME A HIT WITH INNERCITY TEENS AFTER RHYTHM AND BLUES PERFORMER BOBBY BROWN AND RAP ARTIST HAMMER PERFORMED IN THEM LAST YEAR THE SHIFT IN FASHION BY TRENDSETTING TEENS IS GIVING THE JITTERS TO RETAILERS WHO ARE TRYING TO FIGURE OUT HOW MUCH ATHLETIC FOOTWEAR TO ORDER FOR CHRISTMAS THE PICKUP IN CONSUMER SPENDING THAT WAS ANTICIPATED BY RETAILERS EARLIER THIS YEAR IS NOT HAPPENING SAYS JOHN HORAN OF SPORTING GOODS INTELLIGENCE IT'S VERY HARD EVEN TO GET BACKTOSCHOOL ORDERS AFTER TEPID 5 GROWTH IN SNEAKER SALES LAST YEAR SOME ANALYSTS HAD BEEN EXPECTING A SURGE IN HOLIDAY SNEAKER ORDERS THIS YEAR BASED ON A STRONGER ECONOMY AND SOME NEW NIKE AND REEBOK MODELS BUT MR JACOBSEN OF KIDDER PEABODY NOW BELIEVES DOMESTIC 1993 SALES WILL BE FLAT IN ITS FORECAST NIKE BASED IN BEAVERTON ORE SAID THAT EARNINGS FOR THE YEAR ENDING MAY 31 1994 WOULD FALL SIGNIFICANTLY BELOW ANALYSTS' MEAN EXPECTATIONS OF 550 A SHARE IT BLAMED CAUTIOUS ATHLETIC SHOE ORDERING FOR THE HOLIDAY SEASON AND RECESSION OUTSIDE THE US ITS STOCK CLOSED AT 5450 A SHARE YESTERDAY DOWN 250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING REEBOK IN STOUGHTON MASS SAID IT EXPECTS TO REPORT SECONDQUARTER EARNINGS OF 44 CENTS TO 48 CENTS A SHARE BELOW ANALYSTS' ESTIMATES OF 56 CENTS TO 60 CENTS A SHARE THE COMPANY PRIMARILY BLAMED THE US MARKET WHERE IT IS TRYING OUT NEW PRICING AND REPOSITIONING ITS CASUAL SHOE LINE ITS STOCK CLOSED AT 2750 A SHARE YESTERDAY DOWN 125 IN BIG BOARD COMPOSITE TRADING CONSUMERS WILL GET A BREAK THOUGH TOUGHER MARKET CONDITIONS WILL BRING PRICES DOWN ANALYSTS SAY REEBOK'S SHAQ ATTACK NAMED AFTER ORLANDO MAGIC STAR SHAQUILLE O'NEAL WILL HAVE A SUGGESTED RETAIL PRICE OF 105 IN THE FALL DOWN FROM 135 IN MARCH EVEN NIKE'S AIR JORDAN A RUNAWAY SELLER WILL DROP TO A SUGGESTED RETAIL PRICE OF 125 A PAIR DOWN FROM 135 FOR THE PAST TWO YEARS GIB FORD PRESIDENT OF CONVERSE SAYS CONSUMERS ARE NOT GOING FOR THE HIGHER PRICED SHOES AMONG THE COMPANY'S MOST POPULAR LINES CHUCK TAYLORS A HIGHTOP SHOE FOR STREET WEAR THAT RETAILS FOR 32 THE COMPANY WILL SOON BEGIN SHIPPING ITS NEW RUN 'N SLAM BASKETBALL SHOE WITH A SUGGESTED PRICE OF 85 NIKE A DOZEN OF WHOSE MODELS ARE PRICED OVER 100 DENIES THAT HIGHPRICED SNEAKER SALES ARE SUFFERING OUR BESTSELLING PRODUCTS THIS SPRING HAVE ALL BEEN 100 OR MORE A COMPANY SPOKESMAN SAYS THOUGH HE ADDS THAT NIKE'S STRONGEST SELLING ZONE IS BETWEEN 70 AND 90 REEBOK AND NIKE BOTH DENY THAT SALES HAVE BEEN AFFECTED BY DOC MARTENS BUT REEBOK DOESN'T DISCOUNT THE TREND IT'S POSSIBLE THAT THERE'S A SHIFT TO THIS COMFORT CASUAL FOOTWEAR AND WE'RE TAKING THAT MARKET VERY SERIOUSLY SAYS A SPOKESMAN HE ADDS THAT THE COMPANY'S BOKS CASUAL SHOE LINE IS AIMED AT GENERATION X PEOPLE AGES 22 YEARS TO 29 YEARS WHO ARE JUST ENTERING THE WORKPLACE AFTER COLLEGE CONVERSE INC A UNIT OF INTERCO INC THAT IS BEST KNOWN FOR ITS CANVAS SHOES WANTS TO JOIN THE NEW FAD IT HAS COME OUT WITH THE LUG BOOT AND NEXT YEAR PLANS TO INTRODUCE THE LUG CLOG BOTH SHOES ARE AIMED AT THE FASHION GENERATION IN AN APPARENT ATTEMPT TO APPEAL TO GRUNGETTES CONVERSE THIS SPRING INTRODUCED A NEW COMMERCIAL TITLED UGLY IN THE 30SECOND SPOT A YOUNG MALE SPOKESMAN SAYS THERE ARE A LOT MORE WHAT YOU CALL UGLY' PEOPLE IN MY WORLD THAN BEAUTIFUL PEOPLE 9306240121 930624 INTERNATIONAL BP SETS SALE OF PURINA MILLS SWEDISH CHAIN BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA BRITISH PETROLEUM PLC CHALKED UP TWO MORE ASSET SALES THAT WILL HELP IT FURTHER PARE ITS MASSIVE DEBT WHICH TOTALED 145 BILLION AT THE END OF MARCH THE COMPANY SAID IT AGREED TO SELL PURINA MILLS INC ITS US ANIMAL FEED BUSINESS TO HOUSTONBASED STERLING GROUP FOR 425 MILLION THE TRANSACTION IS EXPECTED TO BE CLOSED IN THE THIRD QUARTER PURINA MILLS MANAGEMENT IS INVOLVED IN THE PURCHASE WITH STERLING IN ADDITION BP AGREED TO SELL ITS CHAIN OF 240 SERVICE STATIONS IN SWEDEN TO THE SWEDISH UNIT OF NORWAY'S STATEOWNED OIL COMPANY STATOIL AS ANALYSTS EXPECT BP TO GET NEARLY 160 MILLION FROM THIS SALE ALTHOUGH THE PRICE WASN'T DISCLOSED THE DIVESTMENT OF PURINA MILLS WHICH BP ACQUIRED FROM RALSTON PURINA CO IN 1986 FOR 545 MILLION IS PART OF BP'S PLAN TO GET OUT OF THE NUTRITION BUSINESS AND CONCENTRATE ON ITS CORE HYDROCARBON ACTIVITIES BP ALREADY HAS SOLD ITS CONSUMER FOODS BUSINESS FOR 124 MILLION AND ITS CONSUMER PRODUCTS DIVISION FOR 375 MILLION INCLUDING THE PURINA MILLS SALE AND OTHER BITS AND PIECES THE COMPANY HAS SOLD MORE THAN 1 BILLION OF NUTRITION ASSETS BP HAS SIX REMAINING NUTRITION BUSINESSES TO BE SOLD INCLUDING A EUROPEAN PETFOODS BUSINESS AND CERTAIN ANIMAL FEED OPERATIONS THE COMPANY PREVIOUSLY DISPOSED OF ABOUT 20 MILLION OF PURINA ASSETS BP WHICH EXPECTS TO GET A SMALL PRETAX PROFIT OUT OF THE SALE SAID NO UNPAID LOANS WOULD BE LEFT BEHIND WITH PURINA MILLS STERLING GROUP IS A CLOSELY HELD FINANCIAL ORGANIZATION THAT ACTS AS PRINCIPAL AND INVESTMENT BANKER IN LEVERAGED AND MANAGEMENT BUYOUT TRANSACTIONS 9306240120 930624 PEPPERAND SALT TELEPHONE BOOTH CALL SPACE 9306240119 930624 WHO'S NEWS MATTEL INC MATTEL INC LOS ANGELES THE TOYMAKER NAMED THREE NEW EXECUTIVE VICE PRESIDENTS ALL TO NEWLY CREATED POSITIONS FRANCESCA LUZURIAGA WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING SERVICES FINANCE AND ADMINISTRATION SHE HAD BEEN SENIOR VICE PRESIDENT AND TREASURER FRED OKUN WAS NAMED EXECUTIVE VICE PRESIDENT SALES HE HAD BEEN SENIOR VICE PRESIDENT SALES DIANA TROUP WAS NAMED EXECUTIVE VICE PRESIDENT PRODUCT DESIGN SHE HAD BEEN SENIOR VICE PRESIDENT PRODUCT DESIGN THE THREE EXECUTIVES' FORMER POSTS WON'T BE FILLED AND THEIR APPOINTMENTS ARE EFFECTIVE IMMEDIATELY ALL WILL REPORT TO JILL E BARAD PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY NOW HAS SIX EXECUTIVE VICE PRESIDENTS 9306240118 930624 FINANCING BUSINESS BROOKLYN UNION GAS CO BROOKLYN UNION GAS CO BROOKLYN NY SAID SHAREHOLDERS OF THE UTILITY APPROVED A 3FOR2 STOCK SPLIT WHICH WILL BE PAID IN EARLY AUGUST TO SHARES OF RECORD JULY 6 9306240117 930624 TRANSPORTATION MOTORISTS DEVISE COMPLICATED STRATEGIES FOR A ONCESIMPLE CHORE BUYING GAS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON FORGET ANY FUTURE FUELS TAXES BEING DEBATED IN WASHINGTON EVEN NOW BUYING GASOLINE IS INCREASINGLY COSTLY AND BECOMING MORE OF A CHORE JULIE MENDOZA KNOWS THAT SHE WAITS IMPATIENTLY FOR A PUMP TO OPEN UP AT ONE BUSY HOUSTON STATION BECAUSE A LOT OF OTHER STATIONS HAVE CLOSED NEARBY ANGELINA FONTANA KNOWS IT TOO SHE DRIVES THREE MILES INTO MASSACHUSETTS FROM HER ENFIELD CONN HOME TO SAVE 23 CENTS A GALLON IN TAXES AND SMOGCONTROL COSTS AND PATRICK HILLYER IN SEATTLE FIGURED OUT THAT HIS PORSCHE'S MILEAGE WAS GETTING CLOBBERED BY THE NEW BLEND OF FUEL SOLD THERE IN WINTER SO HE BUYS GASOLINE OUTSIDE THE CITY WITH A FEW CRISISRELATED EXCEPTIONS GAS HAS BEEN CHEAP AND EASY TO GET FOR NEARLY 50 YEARS ADJUSTED FOR INFLATION PUMP PRICES RIGHT NOW 118 PER UNLEADED GALLON ON AVERAGE ARE LOWER THAN THEY WERE JUST AFTER WORLD WAR II BUT THE GREEN LIGHT ON PRODIGAL GASOLINE USE IS BEGINNING TO FLASH AMBER WE'VE BEEN LIVING IN A TWILIGHT ZONE SAYS WILLIAM BERMAN NATIONAL ENERGY DIRECTOR OF THE AMERICAN AUTOMOBILE ASSOCIATION AND WE'RE ABOUT TO GO TO REALITY DISPARATE FACTORS ARE COMBINING TO PUSH PRICES HIGHER AND CONVENIENCE LOWER REFINERS AND RETAILERS ARE BEGINNING TO PASS THROUGH THE COSTS OF COMPLYING WITH NEW ENVIRONMENTAL REGULATIONS THOSE COSTS COMBINED WITH HARSH MARKETSHARE WARS ARE ELIMINATING THOUSANDS OF COMPETITORS AND EVEN AS WASHINGTON MOVES CLOSER TO RAISING THE FEDERAL GASOLINE TAX 31 TO 184 CENTS A GALLON MANY STATES HAVE BEEN QUIETLY PUTTING THEIR OWN INCREASES IN PLACE WE'RE GOING TO SEE 2 A GALLON GASOLINE THE WAY THINGS ARE GOING PREDICTS MCDONALD BEAVERS PRESIDENT OF GASOLINE TRACKER WHITNEY LEIGH CORP OF TULSA GASOLINE COULD APPROACH THAT PRICE IN LESS THAN FIVE YEARS HE SAYS EVEN IF CRUDEOIL PRICES STAY WHERE THEY ARE AS EXPECTED THE AAA'S MR BERMAN EXPECTS A 20CENTAGALLON JUMP IN THE NEXT TWO YEARS BUYING FUEL IN THE US WHICH DRIVERS DO 191 MILLION TIMES EACH WEEK IS STILL CHEAPER THAN IN MOST PARTS OF THE WORLD TOKYO DRIVERS PAY 350 A GALLON AND PARISIANS LIVE WITH 4 PRICES SAYS FRANCIS GIRAULT A PLANNER FOR FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE THEY SCREAM HERE BUT UNLIKE THE US THEY DON'T EXPECT A LOT OF THINGS FROM THEIR SCREAMS NORMAN HIGBY AN ENERGY FORECASTER IN MENLO PARK CALIF BELIEVES THE NEW VEXATIONS OF GASOLINE BUYING IN THE US WILL PROMPT CONSUMER DEMAND FOR MORE FUELEFFICIENT CARS AND SPUR SERIOUS DEVELOPMENT OF ALTERNATIVEFUELED VEHICLES YOU'LL GET THE ECONOMIC INCENTIVE YOU NEED FOR DEVELOPMENT OF SOLARPOWERED AND ELECTRICPOWERED CARS AND THE CREATION OF A NATURALGAS SERVICESTATION INFRASTRUCTURE MR HIGBY SAYS THAT COULD HAPPEN EARLY NEXT CENTURY HE SAYS UNTIL THEN CONSUMERS MUST CONTEND WITH THE GROWING IRRITATIONS SURROUNDING PIT STOPS TOPPING THE LIST IS PRICE POSTED IN FOOTHIGH NUMBERS NO OTHER CONSUMER PRICE RISE ELEVATES BLOOD PRESSURE AS QUICKLY THAT IS WHY ANGELINA FONTANA DRIVES THE THREE MILES INTO MASSACHUSETTS FROM HER CONNECTICUT HOME TO FILL UP TAXES ARE LOWER AND OUTSIDE THE BOSTON AREA THERE ARE NO PRICEY POLLUTIONREDUCING ADDITIVES IN WINTER SHE SPENDS 345 LESS PER TANKFUL BUT FINDING PRICE BREAKS WILL GET TOUGHER SOME MARKETERS THAT HELD OFF PASSING THROUGH COSTS FOR COMPETITIVE REASONS CAN'T AVOID IT ANY LONGER THE CLEAN AIR ACT AND LOCAL ENVIRONMENTAL RULES COULD COST THE OIL INDUSTRY AS MUCH AS 30 BILLION THIS DECADE FOR EVERYTHING FROM NEW REFINERY EQUIPMENT TO CUMBERSOME NEW FUEL NOZZLES CHEVRON CORP FOR ONE WILL DO ALL IT CAN TO PASS ALONG TO DRIVERS ITS 2 BILLION PORTION IF I DIDN'T DO THAT SAYS JAMES HUCCABY CHEVRON'S GASOLINEPRICING MANAGER THE COMPANY OUGHT TO FIRE ME AT AN AMOCO CORP STATION IN CHICAGO'S SUBURB OF BATAVIA DEALER STANLEY OKE CALCULATES THAT SINCE 1990 OPERATING COSTS HAVE CLIMBED 16 TO 551000 A YEAR PROFIT MARGINS HAVE BECOME SO COMPRESSED MR OKE SAYS THAT ANY ADDITIONAL COSTS WILL BE PASSED ON TO THE CUSTOMER THE BIGGEST NEW EXPENSE 350000 FOR STORAGE TANKS TO MEET ENVIRONMENTAL RULES THEN THERE'S TAXES MR OKE SAYS WHICH TOTAL 4318 CENTS A GALLON INCLUDING FEDERAL STATE AND COUNTY LEVIES NINE STATES RAISED GAS TAXES LAST YEAR AND SIX ARE NOW CONSIDERING BOOSTING THEM MORE THAN 150 STATIONS CLOSE EACH WEEK MANY UNABLE TO AFFORD ENVIRONMENTAL UPGRADES THE LOSS OF STATIONS THAT SELL UNBRANDED GAS WORRIES MR BERMAN OF AAA BECAUSE THEY TRADITIONALLY SELL AT A SHARP DISCOUNT AND THE VANISHING FOURSTATION CORNER IS A PROBLEM AS WELL WITH FEWER NEARBY COMPETITORS RETAIL OUTLETS CAN NO LONGER BE RELIED ON TO LOWER PRICES ONCE A CRISIS SUCH AS THE EXXON VALDEZ SPILL IS OVER THE DISAPPEARANCE OF THOSE STATIONS MEANS SOME MOTORISTS HAVE TO DRIVE FARTHER FOR GAS AND FACE LONGER LINES AT A BUSTLING CHEVRON STATION IN HOUSTON'S HEIGHTS NEIGHBORHOOD RECENTLY JULIE MENDOZA IDLES HER CAR BY THE CURB FOR SEVERAL MINUTES BEFORE A PUMP OPENS UP MS MENDOZA LIVES AND WORKS NEARBY AND HAS WAITED TO BUY GAS HERE BEFORE BUT HER OPTIONS ARE FEW WITHIN TWO MILES 11 STATIONS CLOSED IN RECENT YEARS INCLUDING A SHUTTERED GRAY AND WHITE RELIC LISTED ON THE NATIONAL REGISTER OF HISTORIC PLACES BIG OIL COMPANIES DON'T SELL NATIONALLY ANYMORE THEY HAVE DITCHED STATIONS IN CITIES WHERE THEIR MARKET SHARE IS LOW ON MUCH OF THE WEST COAST CONSUMERS HAVE A CHOICE OF ONLY FOUR TO SIX BRANDS WASHINGTON STATE ANTITRUST REGULATORS WORRY THAT FOUR BIG OIL COMPANIES SELL 90 OF SEATTLE'S GAS FIVE YEARS AGO SEVEN MAJORS HELD 84 OF THE MARKET WE'RE AT A CRUCIAL POINT HERE I DON'T SEE HOW WE COULD GO SMALLER SAYS DUANE THURMAN A WASHINGTON STATE ANTITRUST ATTORNEY ONE BYPRODUCT OF CURBED COMPETITION SHOWS UP IN THE GAS TANK ITSELF NINE PERCENT OF THE TIME MOTORISTS DON'T GET THE OCTANE THAT THEY PAY FOR SAYS A STUDY BY PUBLIC CITIZEN THE CONSUMER GROUP THE GROUP FEARS CHEATING WILL SPEED UP WITH THE SPREAD OF COSTLIER GASOLINES LAST NOVEMBER GAS IN 39 CITIES FOR THE FIRST TIME CONTAINED AN OXYGEN ADDITIVE MEANT TO REDUCE UNHEALTHY CARBON MONOXIDE EMISSIONS DURING WINTER TO MEET THE CLEAN AIR ACT RULES OIL COMPANIES ADDED EITHER CORNBASED ETHANOL OR A CHEMICAL CALLED METHYL TERTIARY BUTYL ETHER KNOWN AS MTBE COST ESTIMATES A NICKEL TO A DIME A GALLON BY 1995 REFORMULATED GAS BECOMES THE RULE IN NINE MAJOR METROPOLITAN AREAS WITH OZONE PROBLEMS AS MANY AS 94 OTHERS MAY CHOOSE TO REQUIRE THE NEW GAS WHICH COULD COST ANOTHER DIME PER GALLON TO MAKE WITH ALL THE DIFFERENT FORMULAS AND RULES THAT VARY FROM PLACE TO PLACE A DIZZYING 30 DIFFERENT KINDS OF GASOLINE COULD BE SOLD ACROSS THE COUNTRY THERE IS ALSO THE QUESTION OF WHETHER THE NEW ADDITIVES MIGHT BE HARMFUL TO SOME CARS IN DENVER WHERE OIL COMPANIES BEGAN BLENDING ETHANOL AND MTBE INTO GASOLINE IN THE 1980S JON LESKO A RESEARCHER AT DENVER UNIVERSITY SAYS BOTH HURT CARS HE SAYS THAT WHEN FIRST PUT IN THE ENGINE PARTICULARLY OF OLDER CARS THEY CAN STRIP AWAY DEPOSITS THAT THEN CLOG OTHER PARTS WHEN MR LESKO RAN A REPAIR SHOP FUELLINE FAILURES SURGED AND FUELINJECTOR PLUGGING ROSE AFTER OXYGENATED GAS WAS INTRODUCED A SELFDESCRIBED GEAR HEAD IN SEATTLE PATRICK HILLYER KEEPS DRIVING LOGS AND SAYS HIS PORSCHE'S MILEAGE SANK 9 ON ETHANOLBLENDED GAS HIS WIFE HAD TO FILL UP HER BMW EVERY 240 MILES INSTEAD OF EVERY 310 THEIR MECHANIC BLAMED ETHANOL A LOT OF PEOPLE I TALKED TO HAD THE SAME PROBLEM BUT DIDN'T SUSPECT THE GAS MR HILLYER SAYS HIS SOLUTION DRIVE 55 MILES FROM HIS HOME TO FILL UP WITH REAL GAS HE SAYS WHAT DRIVES ME CRAZY IS THAT I HAD NO CHOICE