OAKLAND CALIF AFTER 13 YEARS AS SAFEWAY INC'S CHIEF EXECUTIVE OFFICER PETER A MAGOWAN SAID HE INTENDS TO STEP ASIDE TO PURSUE HIS NEW CAREER AS MANAGING GENERAL PARTNER AND PRESIDENT OF THE SAN FRANCICO GIANTS MR MAGOWAN 50 YEARS OLD REMAINS CHAIRMAN OF SAFEWAY'S BOARD AND WILL BE SUCCEEDED MAY 1 AS CHIEF EXECUTIVE OFFICER BY SAFEWAY'S PRESIDENT STEVE BURD MR BURD WILL ALSO CONTINUE AS THE SUPERMARKET CHAIN'S PRESIDENT LAST SUMMER MR MAGOWAN JOINED A GROUP OF SAN FRANCISCOAREA INVESTORS WHO PURCHASED THE TEAM TO KEEP FORMER OWNER ROBERT LURIE FROM MOVING IT TO ST PETERSBURG FLA AT THE TIME HE SAID HE HAD NO INTENTION OF TAKING ON ANY ADMINISTRATIVE ROLE WITH THE TEAM BUT AFTER THE SALE OF THE GIANTS WAS APPROVED BY THE OWNERS OF MAJOR LEAGUE BASEBALL IN JANUARY MR MAGOWAN BECAME THE TEAM'S GENERAL PARTNER AND PRESIDENT IN A STATEMENT RELEASED BY SAFEWAY YESTERDAY HE SAID HE FOUND THE BASEBALL JOBS MORE TIMECONSUMING THAN HE EXPECTED HE ELECTED TO LEAVE SAFEWAY AT SAFEWAY MR MAGOWAN SALARY WAS 13 MILLION A GIANTS' SPOKESMAN DECLINED TO SAY WHAT THE TEAM IS PAYING HIM 9303090103 930309 CURRENCY INSTABILITY TARNISHES PERLS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET'S ROCKET SCIENTISTS LOVE TO DESIGN HIGHPOWERED NEW SECURITIES TO CAPTURE THE IMAGINATION OF BIG INVESTORS BUT SOMETIMES THE ROCKET EXPLODES THAT'S WHAT HAPPENED TO MANY INVESTORS WHO BOUGHT BILLIONS OF DOLLARS OF PERLS SHORT FOR PRINCIPAL EXCHANGERATE LINKED SECURITIES WHICH WERE CURRENCY TRADES DRESSED UP AS HIGHYIELDING NOTES PERLS OFFERED THE TEMPTING COMBINATION OF TRIPLEA DEBT SECURITIES PAYING SKYHIGH INTEREST IN US DOLLARS THE CATCH WAS THAT THE PRINCIPAL WAS REPAYABLE IN ONE OR MORE FOREIGN CURRENCIES SUBJECTING THE INVESTOR TO THE RISKS OF HUGE CURRENCYMARKET FLUCTUATIONS IT WAS A VERY EASY WAY TO MAKE GOOD MONEY AND AN EASY WAY TO LOSE A LOT OF MONEY TOO SAYS SHIRISH MALEKAR AN INTERNATIONAL BOND MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO IN NEWPORT BEACH CALIF MORGAN STANLEY GROUP INC'S MORGAN STANLEY & CO UNIT WHICH PIONEERED PERLS ISSUED 37 BILLION OF THEM BETWEEN MARCH 1987 AND AUGUST 1992 OTHER WALL STREET FIRMS INCLUDING JP MORGAN & CO BANKERS TRUST NEW YORK CORP AND FIRST BOSTON CORP SOLD AN ESTIMATED 4 BILLION MORE OF SIMILAR SECURITIES IN AN APRIL 1990 RESEARCH ARTICLE PROMOTING PERLS MORGAN STANLEY SAID THE BONDS WERE DESIGNED IN PART TO ALLOW SOME SAVINGS BANKS AND INSURANCE COMPANIES THAT COULDN'T PLAY THE CURRENCY MARKET BECAUSE OF REGULATORY RESTRICTIONS TO PARTICIPATE IN THESE GLOBAL OPPORTUNITIES THEY WERE EVENTUALLY SOLD TO A WIDE ARRAY OF INSTITUTIONS AND WEALTHY INDIVIDUALS BUT THE STORY OF PERLS OFFERS INVESTORS A LESSON ABOUT THE PITFALLS OF REACHING FOR ABOVEMARKET YIELDS BY VENTURING INTO THE WILD BLUE YONDER OF UNTESTED SECURITIES DESIGNED BY WALL STREET ROCKET SCIENTISTS OR NEWPRODUCT DESIGNERS LIKE SHORTTERM WORLD INCOME MUTUAL FUNDS ANOTHER GLOBAL INVESTMENT PRODUCT THAT BURNED INVESTORS PERLS GENERATED HIGH YIELDS BY BETTING HIGHYIELDING CURRENCIES LIKE ITALIAN LIRA OR BRITISH POUNDS WOULD HOLD THEIR VALUE AGAINST LOWERYIELDING GERMAN MARKS OR SWISS FRANCS BUT WHEN EUROPE'S EXCHANGERATE MECHANISM OR ERM COLLAPSED IN THE FALL SENDING THE VALUE OF HIGHYIELDING CURRENCIES TUMBLING THE PRINCIPAL VALUE OF MANY PERLS COLLAPSED AS WELL FALLING BY 30 OR MORE IN SOME CASES THE PRINCIPAL LOSSES WERE MAGNIFED BECAUSE INVESTORS BORROWED TO TRY TO BOOST THEIR RETURNS AS A RESULT THERE HAVEN'T BEEN ANY PERLS SOLD SINCE AUGUST HERE'S HOW INVESTORS TOOK A BIG BEATING ON ONE OF THE LARGEST PERLS SOLD BY STUDENT LOAN MARKETING ASSOCIATION KNOWN AS SALLIE MAE ON JUNE 28 1990 THE AGENCY RAISED 135 MILLION BY ISSUING PERLS THE NOTES DUE IN 1995 PAID ANNUAL INTEREST IN DOLLARS OF 1175 A HEFTY PREMIUM OF 334 PERCENTAGE POINTS OVER WHAT FIVEYEAR TREASURY NOTES WERE YIELDING THEN BUT THE 135 MILLION PRINCIPAL IS REPAYABLE IN TWO DIFFERENT CURRENCIES AT EXCHANGE RATES PREVAILING AROUND THE TIME THE NOTES WERE SOLD HOLDERS OF THE NOTES WERE ENTITLED TO 270 MILLION IN BRITISH POUNDS MINUS 135 MILLION IN GERMAN MARKS AT EXCHANGE RATES THEN PREVAILING IF THE EXCHANGE RATES AMONG POUNDS MARKS AND DOLLARS HAPPENED TO BE THE SAME IN JULY 1995 INVESTORS WOULD GET THEIR ENTIRE 135 MILLION PRINCIPAL INVESTMENT BACK ON TOP OF THE PREMIUM INTEREST RATE BUT IF THE POUND FELL OR THE MARK ROSE AGAINST THE DOLLAR THE INVESTORS RISKED SUFFERING LOSSES VERY BIG LOSSES WHAT HAPPENED WAS THE WORST OF ALL POSIBLE OUTCOMES FOR PERLS INVESTORS THIS PARTICULAR SALLIE MAE ISSUE LIKE 35 OF ALL PERLS WAS KNOWN AS A CONVERGENCE TRADE BECAUSE IT DEPENDED ON EUROPEAN EXCHANGE RATES REMAINING STABLE AS EUROPE MOVED TOWARD ECONOMIC UNION BUT WHEN BRITAIN WITHDREW FROM THE EUROPEAN EXCHANGERATE SYSTEM IN SEPTEMBER THE POUND PLUNGED IN VALUE AGAINST THE MARK AS A RESULT THIS SALLIE MAE PERLS ISSUE HAS TUMBLED 40 IN PRINCIPAL VALUE FROM 148 MILLION AT THE END OF AUGUST TO 885 MILLION ON MARCH 4 A MORGAN STANLEY SPOKESWOMAN SAYS HOLDERS OF A MAJORITY OF THIS PARTICULAR SALLIE MAE ISSUE RESOLD THEM AT A PROFIT BY MIDAUGUST BEFORE THE PRICE PLUNGED SHE ADDED THAT THIS ISSUE TRADES AT 83 OF ITS FACE VALUE OR 1114 MILLION BECAUSE THE 1175 INTEREST COUPON IS NEARLY TRIPLE THE 402 INTEREST YIELD ON COMPARABLE TREASURY NOTES SOME TRADERS SAY THAT SOME PERLS WERE SOLD TO UNSUSPECTING MONEY MANAGERS WHO THOUGHT THEY WERE GETTING EXTRA YIELD ON NONVOLATILE NOTES ONLY TO DISCOVER THE BIG RISKS BUT OTHERS SAY PROFESSIONAL INVESTORS SHOULD HAVE REALIZED THAT SOPHISTICATED ISSUERS LIKE SALLIE MAE DON'T OFFER PREMIUM YIELDS FOR NO REASON A SPOKESWOMAN FOR SALLIE MAE WHICH ISSUED MORE THAN 13 BILLION OF PERLS DECLINED TO DISCUSS THE SUBJECT IN DETAIL SHE SAID THE AGENCY ISSUED THE NOTES IN RESPONSE TO DEMAND AND HAD HEDGED ITS OWN EXCHANGERATE AND INTERESTRATE RISKS AS I'M SURE YOU HAVE FOUND SHE SAID SOME PERLS HAVE DONE WELL AND OTHERS HAVE DONE LESS WELL MORGAN STANLEY EXECUTIVES SAY THE RISKS INHERENT IN PERLS WERE WELLKNOWN TO THE BUYERS MARSHAL SALANT A PRINCIPAL IN THE FIRM'S DERIVATIVES PRODUCTS GROUP WHICH DEVELOPED PERLS SAID OUR VIEW IS THAT THESE THINGS MOVED WITH THE MARKET IT'S OBVIOUSLY A COMPLICATED SECURITY BUT IT PERFORMED THE WAY IT WAS DESIGNED IT MOVED WITH THE UNDERLYING MARKET THE FIRST FEW PERLS HAD PRINCIPAL DENOMINATED IN HIGHYIELDING AUSTRALIAN DOLLARS THE NEXT FEW WERE DENOMINATED IN DOLLARS MINUS LOWYIELDING YEN IN EACH CASE THE NOTE BUYER HAD TO MAKE A BET THAT A HIGHYIELDING CURRENCY WOULDN'T DECLINE OR A LOWERYIELDING CURRENCY WOULDN'T APPRECIATE AGAINST THE DOLLAR FOR A WHILE PERLS DID FINE THE AUSTRALIAN DOLLAR HELD UP AGAINST THE DOLLAR AND THE YEN DIDN'T SKYROCKET SO THE FIRST FEW PERLS THAT MATURED SHOWED ANNUAL RETURNS OF 14 TO 157 AND OTHERS WERE SHOWING RETURNS OF AS MUCH AS 179 AS OF JANUARY 1991 MORGAN STANLEY SAID MORGAN STANLEY'S OWN RESEARCH SHOWED IN AN AUGUST 1991 SENSITIVITY ANALYSIS THAT A DIVERSIFIED PORTFOLIO OF PERLS WOULD YIELD MORE THAN 10 ANNUALLY TO MATURITY UNDER EIGHT DIFFERENT CURRENCY SCENARIOS HOWEVER NONE OF THE SCENARIOS INCLUDED ANY CHANGES IN EXCHANGE RATES AMONG DIFFERENT EUROPEAN CURRENCIES THE PREVAILING WISDOM WAS THAT BECAUSE ERM HAD HELD TOGETHER FOR A WHILE IT WOULD ALWAYS HOLD TOGETHER SAID AN OFFICIAL OF ONE WALL STREET FIRM THAT DIDN'T ISSUE SECURITIES LIKE PERLS NEITHER MORGAN STANLEY SALLIE MAE NOR ANY OTHER WALL STREET FIRM WOULD IDENTIFY PERLS BUYERS WHO SUFFERED LOSSES HOWEVER SIX WORLD INCOME FUNDS RUN BY MERRILL LYNCH & CO HELD PERLS VALUED AT 2843 MILLION AS OF MID1992 ACCORDING TO MORNINGSTAR INC THE CHICAGO MUTUALFUND DATA SERVICE A SPOKESMAN FOR MERRILL CONFIRMED THE PERLS HOLDINGS BUT SAID THEY REPRESENTED A SMALL PERCENTAGE OF THE SIX FUNDS' 6 BILLION IN TOTAL ASSETS AND THAT 2668 MILLION OF THE NOTES HAD BEEN LIQUIDATED BY THE END OF 1992 PEOPLE ON WALL STREET SAID MERRILL SOLD THE NOTES BECAUSE THE ERM COLLAPSE DESTROYED THEIR RATIONALE I THINK IT'S FAIR TO SAY ALL CURRENCYLINKED DEALS HAVE DIMINISHED SIGNIFICANTLY FOLLOWING THE EUROPEAN CURRENCY CRISIS SAYS MORGAN STANLEY'S MR SALANT WE HAD 5 1/2 YEARS OF STABILITY AND EVERYBODY DOING WELL AND THEN WE HAD THAT PERIOD OF INSTABILITY IN THE FALL THAT MADE PEOPLE BACK OFF 9303090102 930309 PENNSYLVANIA AGENCY SAYS IT FINED CBS INC TOTAL OF 59 MILLION LANCASTER PA THE PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL RESOURCES SAID IT FINED CBS INC 59 MILLION FOR VIOLATING ENVIRONMENTAL LAWS AT A FORMER TOYMAKING FACILITY HERE CBS WHICH OPERATED THE GABRIEL TOYS FACILITY IN EAST LAMPETER TOWNSHIP FROM 1978 TO 1986 RECEIVED THE RESULTS OF THREE INVESTIGATIONS FROM 1983 TO 1985 THAT DISCLOSED ENVIRONMENTAL PROBLEMS ON THE PROPERTY BUT TOOK NO ACTION TO NOTIFY THE DEPARTMENT OR CLEAN UP THE SITE SAID ARTHUR A DAVIS THE DEPARTMENT'S SECRETARY THE SITE HAS BEEN HOME TO A NUMBER OF TOY COMPANIES SINCE ABOUT 1956 AND HAZARDOUS AND INDUSTRIAL WASTES WERE DISPOSED OF IN TWO LAGOONS INVESTIGATIONS HAVE CONFIRMED THAT SOIL AND GROUNDWATER AT THE SITE ARE CONTAMINATED WITH SUSPECTED CANCERCAUSING SOLVENTS AS WELL AS HEAVY METALS SUCH AS NICKEL LEAD AND ZINC HOWEVER THERE IS NO IMMEDIATE THREAT TO PUBLIC HEALTH MR DAVIS SAID CBS AND PLAYSKOOL THE PROPERTY'S CURRENT OWNER FAILED TO COME TO AN AGREEMENT TO SHARE CLEANUP COSTS ALTHOUGH PLAYSKOOL HAS AGREED TO CLEAN UP THE SITE ALONE AND PAY AN 82000 PENALTY THE PENALTY WAS IMPOSED BECAUSE PLAYSKOOL FAILED TO NOTIFY THE DEPARTMENT OF EXISTING CONTAMINATION THAT WAS DISCLOSED IN A REPORT WHEN THE PROPERTY WAS ACQUIRED FROM CBS IN 1986 ACCORDING TO THE DEPARTMENT CBS SAID IT HAD NO IMMEDIATE COMMENT BECAUSE OF THE COMPLICATED NATURE OF THE CLAIM THE DEPARTMENT'S COMPLAINT WILL NOW GO BEFORE THE STATE'S ENVIRONMENTAL HEARING BOARD 9303090101 930309 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 24 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9303090100 930309 WHO'S NEWS STEPHENS STEPS DOWN AS CHIEF EXECUTIVE PRESIDENT OF EMULEX COSTA MESA CALIF EMULEX CORP SAID ROBERT N STEPHENS HAS RESIGNED AS CHIEF EXECUTIVE OFFICER PRESIDENT AND A DIRECTOR OF THE COMPUTERPRODUCTS CONCERN MR STEPHENS 48 YEARS OLD HELD THOSE JOBS SINCE OCTOBER 1990 A COMPANY SPOKESMAN DECLINED COMMENT ON THE RESIGNATION THE ACTION COMES AS EMULEX IS REORGANIZING TO SPLIT INTO TWO SEPARATE PUBLICLY HELD COMPANIES UNDER A PLAN ANNOUNCED LAST APRIL THE COMPANY'S EMULEX MICRO DEVICES UNIT WILL BE SPUN OFF TO FORM ONE COMPANY THE OTHER COMPANY WILL INCLUDE THE EMULEX NETWORK SYSTEMS UNIT THE COMPANY SAID ITS BOARD HAS FORMED A MANAGEMENT COMMITTEE TO SUPERVISE OPERATIONS AND THEY WILL NAME NEW CHIEF EXECUTIVES FOR BOTH COMPANIES AS THE REORGANIZATION IS COMPLETED LATER THIS YEAR LAST SUMMER EMULEX TOOK AN 18 MILLION CHARGE TO EARNINGS WHEN IT QUIT MAKING DATASTORAGE DEVICES THAT ACCOUNTED FOR ABOUT ONETHIRD OF ITS SALES IN ITS SECOND QUARTER ENDED DEC 27 EMULEX REPORTED NET INCOME OF 21 MILLION OR 20 CENTS A SHARE COMPARED WITH A LOSS OF 58 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER PERIOD 9303090099 930309 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 3 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 CORP308 30 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 317 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 313 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 268 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 305 120 DAYS 308 150 DAYS 310 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 625 GERMANY 9 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 MARCH 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 717 60 DAYS 727 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 716 60 DAYS 726 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 281 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303090098 930309 TECHNOLOGY & HEALTH WOMEN FACE MUCH HIGHER RISK OF DYING AFTER ANGIOPLASTY THAN MEN STUDY SAYS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WOMEN RUN A MUCH HIGHER RISK THAN MEN OF DYING IMMEDIATELY AFTER UNDERGOING A COMMON PROCEDURE TO CLEAR CLOGGED ARTERIES RESEARCHERS SAID THE STUDY PUBLISHED IN THE MARCH ISSUE OF THE AMERICAN HEART ASSOCIATION'S JOURNAL CIRCULATION FOLLOWED UP AN EARLIER STUDY THAT ALSO FOUND A HIGHER RATE OF COMPLICATIONS AND DEATH AMONG WOMEN FOLLOWING THE PROCEDURE CALLED PERCUTANEOUS TRANSLUMINAL CORONARY ANGIOPLASTY OR PTCA IN THE PROCEDURE USED MAINLY TO TREAT CHEST PAIN A TINY BALLOON IS INSERTED IN THE ARTERY AND INFLATED TO FLATTEN THE FATTY BUILDUP IN THE BLOOD VESSEL OF THE MORE THAN 300000 ANGIOPLASTY PROCEDURES PERFORMED EACH YEAR IN THE US A THIRD ARE ON WOMEN IN AN ACCOMPANYING EDITORIAL MARK A GREENBERG AND HILTRUD S MUELLER CARDIOLOGISTS AT THE MONTEFIORE MEDICAL CENTER BRONX NY SAY THE FINDINGS WHICH COVERED PROCEDURES DONE BETWEEN 1985 AND 1986 SHOULD BE CONSIDERED CAREFULLY BY DOCTORS WHO ARE RECOMMENDING ANGIOPLASTY TO WOMEN IN REACTION TO REPORTS OF SEX BIAS IN MEDICAL TREATMENT IN THE PAST COUPLE OF YEARS THE MEDIA HAS FOCUSED ON HOW WOMEN RECEIVE FEWER DIAGNOSTIC TESTS AND CARDIAC PROCEDURES THAN MEN THE TWO CARDIOLOGISTS SAY PHYSICIANS SHOULDN'T ATTEMPT TO OVERCOMPENSATE FOR PERCEIVED SEX BIAS IN THIS HIGHRISK GROUP OF PATIENTS THE PREVIOUS STUDY EXAMINED CORONARY ANGIOPLASTIES PERFORMED BETWEEN 1978 AND 1981 WHEN THE PROCEDURE WAS NEW THE FIRST ONE WAS DONE IN 1977 RESEARCHERS SOUGHT TO FIND OUT WHETHER TECHNOLOGICAL CHANGES AND IMPROVED PHYSICIAN SKILLS SINCE THEN AFFECTED PATIENT OUTCOMES SAID SHERYL F KELSEY DEPUTY DIRECTOR OF THE NATIONAL HEART LUNG AND BLOOD INSTITUTE'S PTCA REGISTRY DATA COORDINATING CENTER AT THE UNIVERSITY OF PITTSBURGH USING DATA COLLECTED ON 2136 MEN AND WOMEN WHO UNDERWENT CORONARY ANGIOPLASTY BETWEEN 1985 AND 1986 DR KELSEY AND HER COLLEAGUES FOUND THAT THE 546 WOMEN HAD A RISK OF DYING AFTER THE PROCEDURE THAT WAS MORE THAN TENFOLD HIGHER THAN FOR THE MEN OF THE 18 PATIENTS WHO DIED IN THE HOSPITAL 14 WERE WOMEN WOMEN WERE ALSO 16 TIMES MORE LIKELY TO SUFFER FROM COMPLICATIONS SUCH AS TEARS IN THE ARTERY WALL AGE PARTLY EXPLAINS THE DIFFERENCE THE WOMEN WERE ON AVERAGE 45 YEARS OLDER THAN THE MEN AND OF THE 14 WOMEN WHO DIED 12 WERE 65 YEARS OR OLDER WOMEN TEND TO DEVELOP HEART DISEASE LATER IN LIFE THAN MEN ACCORDING TO DR KELSEY BECAUSE THEY WERE OLDER THE WOMEN TENDED TO HAVE MORE HEALTH PROBLEMS SUCH AS DIABETES AND HIGH BLOOD PRESSURE WHICH PUT THEM AT HIGHER RISK DR KELSEY SAID BUT EVEN AFTER ADJUSTING FOR AGE AND OTHER RISK FACTORS WOMEN STILL HAD A DEATH RATE 45 TIMES HIGHER THAN MEN WHICH IS UNEXPLAINED SHE SAID THE 97 OF THE WOMEN WHO SURVIVED THE PROCEDURE HOWEVER DID JUST AS WELL OVER THE LONG TERM AS THE MEN ACCORDING TO DR KELSEY THE STUDY'S RESULTS DON'T MEAN WOMEN SHOULDN'T HAVE ANGIOPLASTY SHE SAID THE PROCEDURE SHOULD BE COMPARED WITH ALTERNATIVES SUCH AS CORONARY ARTERY BYPASS GRAFT SURGERY WHICH SOME STUDIES INDICATE ALSO PUTS WOMEN AT A HIGHER RISK THAN MEN ACCORDING TO THE RESEARCHERS A STUDY IS UNDER WAY COMPARING ANGIOPLASTY AND BYPASS SURGERY BUT THE RESULTS WON'T BE AVAILABLE FOR SEVERAL YEARS DR KELSEY SAID MOREOVER TECHNOLOGY AND PHYSICIAN SKILL HAS CONTINUED TO IMPROVE SINCE 1986 AND THE MORTALITY RATE FOR WOMEN MAY HAVE DECLINED AS A RESULT SHE SAID 9303090097 930309 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THIS EVOCATIVE VISION OF MODERN LIFE COMING TO THE STEPPES OF INNER MONGOLIA HAS A LYRICAL QUIRKINESS AND A MESMERIZING CHARM AT THE CENTER IS A YOUNG MONGOL FAMILY STILL LIVING AS ITS ANCESTORS DID HAPPILY SO BUT TEMPTED BY MODERN THINGS MADE AVAILABLE BY INTRUDERS FROM THE SOVIET UNION AND CHINA THINGS LIKE TELEVISIONS BICYCLES CONDOMS AND BASEBALL CAPS IT'S THE KIND OF MOVIE THAT TAKES YOU PLACES YOU'VE NEVER BEEN AND MAKES THE STRANGE AND WONDERFUL EXPERIENCES IN THESE PLACES FEEL LIKE YOUR OWN YOU COULD CALL THIS A COMINGOFMIDDLEAGE MOVIE THE STORY OF A SUCCESSFUL SOAP OPERA ACTRESS MS MCDONNELL LEFT CRIPPLED WHEN A NEW YORK CITY TAXI HITS HER FORCED BY CIRCUMSTANCE TO RECONSIDER LIFE SHE GOES BACK HOME TO THE LOUISIANA BAYOU TO DO IT SHE FACES HER OWN HARD MEMORIES WITH THE NURSE SHE HIRES A WOMAN WITH HER OWN MUDDLED PAST TO CONTEND WITH WRITER AND DIRECTOR SAYLES HAS FILTERED ALL THIS THROUGH HIS OWN PARTICULAR URBAN WIT AND HAS COME UP WITH A FRESH KIND OF WOMAN'S PICTURE ONE THAT IS PERCEPTIVE AND ENTERTAINING MR MURRAY'S DEADPAN SCREWINESS PLAYS AT PERFECT PITCH IN THIS ROMANTIC COMEDY HIS SIXTH COLLABORATION WITH MR RAMIS ABOUT A MAN WHO EXPERIENCES THE SAME DAY OVER AND OVER AGAIN AND KEEPS IMPROVING ON IT IT'S SUNNILY KAFKAESQUE A LITTLE ABSURDITY A LITTLE PHILOSOPHY THE ROMANCE BETWEEN MR MURRAY AND MS MACDOWELL FEELS REAL TOO NOT LIKE A SENDUP THERE IS A SWEETNESS TO HER BEAUTY THAT FITS QUITE NATURALLY INTO THIS FANTASY AT FIRST THIS PICTURE FEELS LIKE POP MELODRAMA ABOUT YOUTHFUL AMBITION USING THE WORLD OF BALLROOMDANCE COMPETITION AS A SATIRIC BACKDROP YET MR LUHRMANN ISN'T THERE TO MOCK THE COMPETITIVE WALTZERS BUT TO PAY HOMAGE THE MOVIE'S DELIBERATE ARTIFICE GIVES IT THE FEEL OF AN UPDATED 1940S MUSICAL ESPECIALLY WHEN IT TURNS INTO A KIND OF CINDERELLA STORY IT'S VERY ROMANTIC AND VERY CHARMING IN THIS LYRICAL RENDITION OF LAURA ESQUIVEL'S NOVEL SET ON A BORDER RANCH IN 1910 DURING THE MEXICAN REVOLUTION EVERYTHING BEGINS AND ENDS IN THE KITCHEN POLITICS AND ROMANCE PASS BY LIKE DREAMS TRUTH EMERGES IN COOKING HERE REPRESSION AND REVENGE ARE ACTED OUT VIVIDLY OFTEN AT THE TABLE MEAN SISTERS ARE PUNISHED WITH FOODS CAUSING FLATULENCE SECRET LOVERS MEET VIA THEIR TASTE BUDS THIS IS A GOODNATURED HOMAGE TO THE SCIFI THRILLERS OF THE 1950S AND '60S MOVIES SUCH AS THE TINGLER THE GENRE SPECIALIZED IN MUTANT BEINGS AND INVASIONS FROM BEYOND ALLOWING YOUNG AUDIENCES TO SOOTHE THEIR FEARS OF THE BIG ONE BY SCREAMING AT THE CREEPY CREATURES ONSCREEN MATINEE IS SET IN KEY WEST THE WEEKEND OF THE CUBAN MISSILE CRISIS AND THE WEEKEND A FICTIONAL SCIFI SCHLOCKMEISTER MR GOODMAN COMES TO TOWN THE MOST FUN COMES IN SNIPPETS OF FAKE HORROR FILMS SUCH AS MANT THE STORY OF A CREATURE THAT'S HALFMAN HALFANT ALL TERROR 9303090096 930309 BUSINESS BRIEFS SHERWOOD MEDICAL A UNIT OF AMERICAN HOME PRODUCTS CORP SIGNED A FIVEYEAR EXCLUSIVE AGREEMENT WITH ONGARD SYSTEMS INC TO MARKET ONGARD'S MAILAWAY MEDICAL WASTE DISPOSAL SYSTEM TERMS WEREN'T DISCLOSED ADVANCED NMR SYSTEMS SAID GENERAL ELECTRIC MEDICAL SYSTEMS AND PARENT COMPANY GENERAL ELECTRIC CO HAVE AGREED TO MARKET AND USE ADVANCED NMR'S INSTASCAN TECHNOLOGY IN GE'S MAGNETIC RESONANCE IMAGE SYSTEMS COCACOLA NESTLE REFRESHMENTS CO A JOINT VENTURE BETWEEN COCACOLA CO AND NESTLE SA WILL BEGIN SELLING ITS NESTEA READYTODRINK TEA IN SOUTH KOREA AMBAR INC HAS FORMED A JOINT VENTURE TO MINE AND PROCESS BARITE IN THE REPUBLIC OF KAZAKHSTAN TERMS OF THE INVESTMENT WEREN'T DISCLOSED AMERICAN PRESIDENT COS AGREED TO BUY UP TO 20 MILLION OF EQUIPMENT IDENTIFICATION TAGS AND READERS OVER THE NEXT FIVE YEARS FROM AMTECH CORP OF DALLAS NORTH AMERICAN BIOLOGICALS INC WILL SUPPLY PLASMA TO MILES INC A RESEARCH FIRM IN PITTSBURGH IN A CONTRACT VALUED AT 35 MILLION FOR THE NEXT THREE YEARS 9303090095 930309 ECONOMY WHITE HOUSE RULES OUT INSURANCE TAX FOR HEALTH CARE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A DECISION THAT WILL PLEASE ORGANIZED LABOR HILLARY RODHAM CLINTON SAID THE WHITE HOUSE HAS RULED OUT TAXING INSURANCE BENEFITS AS A WAY TO PAY FOR OVERHAULING THE NATION'S HEALTHCARE SYSTEM IN AN INTERVIEW WITH THE ASSOCIATED PRESS MRS CLINTON SAID SUCH A TAX WOULD BE UNFAIR SHE ADDED THAT BEFORE WE DO THAT THE ADMINISTRATION'S HEALTHCARE TASK FORCE WHICH SHE HEADS WILL LOOK FOR OTHER ALTERNATIVES THOSE OPTIONS SHE EXPLAINED INCLUDE EITHER A SLIGHTLY LONGER PHASEIN OF THE PLAN OR QUICKER COSTCONTAINMENT THE FIRST LADY ALSO TOLD THE AP THE WHITE HOUSE WON'T SEEK A MIDDLECLASS TAX INCREASE TO PAY FOR HEALTH REFORM WHICH THE TASK FORCE HAS ESTIMATED COULD COST AS MUCH AS 90 BILLION A YEAR AND ECHOING RECENT STATEMENTS BY HER HUSBAND SHE SAID SOCALLED SIN TAXES SUCH AS THOSE ON CIGARETTES WERE A GOOD SOURCE OF FINANCING BECAUSE THOSE ARE HEALTHRELATED THE MOVE AWAY FROM TAXING INSURANCE BENEFITS HAD BEEN EXPECTED BUT MRS CLINTON'S COMMENTS WERE THE FIRST CONFIRMATION THAT SUCH A LEVY DEFINITELY HAD BEEN PUT ASIDE UNION OFFICIALS LED BY THE AFLCIO HAVE BEEN ARGUING THAT A TAX ON HEALTH BENEFITS WOULD BE AN AFFRONT TO THEIR COLLECTIVEBARGAINING EFFORTS AND WITH ORGANIZED LABOR STILL SOMETHING OF A FORCE ON CAPITOL HILL THE ADMINISTRATION EVIDENTLY DIDN'T WANT TO PUT DEMOCRATIC LAWMAKERS IN THE AWKWARD POSITION OF CHOOSING BETWEEN THE PRESIDENT'S PLAN AND A VALUED CONSTITUENCY ALTHOUGH THE AP REPORT WASN'T SPECIFIC THE IDEA OF TAXING HEALTH BENEFITS HAS GENERALLY BEEN INTERPRETED TO MEAN HAVING EMPLOYEES PAY A TAX LAST WEEK CLINTON ADVISERS INDICATED THAT THE ADMINISTRATION IS ACTIVELY CONSIDERING AMONG ABOUT 30 POSSIBLE FUNDING MECHANISMS A CORPORATE TAX ON EMPLOYERPROVIDED HEALTH BENEFITS THEY SAID THAT TAXING BUSINESSES IN THIS FASHION WOULD BE LESS POLITICALLY DANGEROUS THAN IMPOSING LEVIES ON THE EMPLOYEES WHO RECEIVE HIGHPRICED COVERAGE AS MRS CLINTON SKETCHED THE HEALTHCARE PLAN WHICH IS EXPECTED TO BE UNVEILED BY MAY 3 IT WILL PROVIDE A GUARANTEED CORE OF BENEFITS FOR ALL AMERICANS SIMILAR TO A STANDARD INSURANCE POLICY BUT WITH AN EMPHASIS ON PREVENTIVE CARE THERE ARE CURRENTLY ABOUT 37 MILLION AMERICANS WHO LACK HEALTH COVERAGE MRS CLINTON ALSO SUGGESTED IN THE AP INTERVIEW THAT THE PLAN COULD BE FINANCED PARTLY BY CUTTING 200 BILLION OF NEEDLESS PAPERWORK AND OTHER OVERHEAD SENIOR WHITE HOUSE AIDE IRA MAGAZINER WHO IS RUNNING THE DAILY OPERATIONS OF THE TASK FORCE HAS SAID THAT OF THE ROUGHLY 800 BILLION SPENT ANNUALLY ON HEALTH CARE 130 BILLION IS FOR UNNECESSARY MEDICAL PROCEDURES AND 70 BILLION IS FOR UNNEEDED ADMINISTRATIVE COSTS THE FIRST LADY LISTED SEVERAL POSSIBLE WAYS TO TRIM THE FAT INCLUDING STANDARDIZING FORMS AND ELIMINATING FEDERAL SUBSIDIES TO SCHOOLS FOR TRAINING SPECIALISTS MRS CLINTON WHO DESCRIBED HER ROLE ON THE TASK FORCE AS THAT OF A CITIZEN REPRESENTATIVE DEFENDED THE DECISION TO HAVE THE PANEL MEET IN SECRET SAYING THAT THE CLOSEDDOOR POLICY WOULD HELP CURB THE INFLUENCE OF LOBBYISTS WE DO NOT WANT TO HAVE HEALTHCARE LEGISLATION IN THE CLINTON ADMINISTRATION WRITTEN BY ANY SPECIALINTEREST GROUP SHE SAID TWO HEALTH ORGANIZATIONS AND A PUBLICPOLICY GROUP ARE SEEKING AN INJUNCTION THAT WOULD PROHIBIT THE TASK FORCE FROM MEETING SECRETLY THEY MAINTAIN THAT BECAUSE MRS CLINTON ISN'T A GOVERNMENT OFFICIAL THE LAW REQUIRES THE PROCEEDINGS OF THE TASK FORCE TO BE OPEN TO THE PUBLIC A FEDERAL JUDGE IS EXPECTED TO RULE ON THE MATTER SOON SEPARATELY A US CHAMBER OF COMMERCE OFFICIAL ADVOCATED THAT ALL EMPLOYERS HELP PAY FOR HEALTH INSURANCE FOR THEIR WORKERS AN EMPLOYER MANDATE IS A NECESSARY PART OF A SOLUTION SAID ROBERT PATRICELLI CHAIRMAN OF THE BUSINESS GROUP'S HEALTH AND EMPLOYEE BENEFITS COMMITTEE HE CAUTIONED HOWEVER THAT TOO SEVERE A MANDATE COULD CAUSE COMPANIES TO CUT JOBS 9303090094 930309 RAWSTEEL OUTPUT FELL 5 IN THE LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 5 LAST WEEK TO 1772000 TONS FROM 1866000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 08 FROM THE 1786000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 806 OF ITS CAPABILITY LAST WEEK COMPARED WITH 849 THE PREVIOUS WEEK AND 812 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9303090093 930309 INTERNATIONAL ELF'S RUSSIAN PROJECT RECEIVES THE APPROVAL OF THE SUPREME SOVIET PARIS STATECONTROLLED OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID THAT ITS LONGDELAYED EXPLORATION AND PRODUCTION PROJECT IN RUSSIA HAS BEEN APPROVED BY THE SUPREME SOVIET GIVING IT THE OFFICIAL IMPRIMATUR NEEDED TO PURSUE THE PROJECT THE CONTRACT WAS APPROVED MARCH 1 BY THE PRESIDIUM OF THE SUPREME SOVIET THE RULING BODY WITHIN THE SUPREME SOVIET WHICH IS THE STANDING LEGISLATIVE BODY THAT IS SUBORDINATE TO RUSSIA'S CONGRESS OF PEOPLE'S DEPUTIES TECHNICALLY SUCH A DECISION COULD BE OVERTURNED BY THE CONGRESS BUT THIS DOESN'T APPEAR LIKELY RUSSIAN PRESIDENT BORIS YELTSIN IS SEEKING TO ABOLISH THE HARDLINE CONGRESS AND WANTS TO ASK THE PEOPLE IN A REFERENDUM WHETHER A BICAMERAL PARLIAMENT SHOULD BE THE COUNTRY'S HIGHEST LEGISLATIVE INSTITUTION ELF HAD REFUSED TO PURSUE THE PROJECT UNTIL IT COULD BE CERTAIN THE SPLIT OF OIL BETWEEN THE RUSSIAN GOVERNMENT AND THE COMPANY SET DOWN IN THE CONTRACT WOULD INCLUDE ALL TAXES AND THAT THE CONTRACT WOULD HAVE THE FORCE OF LAW OTHER OIL PROJECTS IN FORMER SOVIET REPUBLICS HAVE BEEN RENDERED UNECONOMICAL BY RETROACTIVE TAXES THAT SUPERSEDED ORIGINAL PACTS ELF'S CONTRACT AREA COVERS 18000 SQUARE KILOMETERS IN THE VOLGOGRAD AND SARATOV REGIONS THE DEAL IS VALID FOR 30 YEARS THE COMPANY SAID THAT IT FORSEES EXPLORATION INVESTMENT OVER NINE YEARS OF AT LEAST 500 MILLION ELF HAD ALREADY RECEIVED APPROVAL OF REGIONAL AUTHORITIES AND MR YELTSIN AN ELF SPOKESMAN SAID THE FRENCH COMPANY WILL PROCEED WITH SEISMIC STUDIES 9303090092 930309 LAW CHARLES KNAPP PLEADS INNOCENT TO CHARGES OF DEFRAUDING THRIFT LOS ANGELES CHARLES W KNAPP FORMER THRIFT EXECUTIVE AND SELFSTYLED TAKEOVER WHIZ PLEADED INNOCENT TO CHARGES HE DEFRAUDED AN ARIZONA THRIFT WHEN IT LOANED HIM 15 MILLION MR KNAPP APPEARED IN FEDERAL COURT HERE WITH HIS FINANCIAL ADVISER ANTHONY C SARNO WHO ALSO PLEADED INNOCENT BOTH MEN ARE FREE ON BAIL A THIRD DEFENDANT MR KNAPP'S OUTSIDE ACCOUNTANT JOSEPH V NASH IS SERVING AN UNRELATED SENTENCE FOR BANK FRAUD AND DIDN'T APPEAR IN AN EIGHTCOUNT FEDERAL INDICTMENT UNSEALED LAST WEEK THE THREE MEN WERE CHARGED WITH CONSPIRACY FALSE STATEMENTS INTERSTATE TRANSPORTATION OF STOLEN FUNDS AND MONEY LAUNDERING MR KNAPP FACES A MAXIMUM SENTENCE OF 51 YEARS IN PRISON AND 2 MILLION IN FINES BEFORE HIS AMERICAN SAVINGS & LOAN ASSOCIATION WAS SEIZED BY FEDERAL REGULATORS IN 1984 MR KNAPP WAS THE MODEL FOR MANY HIGHFLYING THRIFT OPERATORS OF THE 1980S HE THEN FORMED THE CLOSELY HELD TRAFALGAR HOLDINGS LTD AND RELATED COMPANIES CLAIMING TO REPRESENT INVESTORS WHO HAD COMMITTED MORE THAN 6 BILLION TO A CORPORATE TAKEOVER FUND BUT TRAFALGAR WAS SHORT OF CASH ACCORDING TO THE INDICTMENT MR KNAPP AND HIS ASSOCIATES REPEATEDLY MISSTATED ASSETS TO SHORE UP THEIR CRUMBLING BALANCE SHEET IN 1988 PROSECUTORS CHARGE TRAFALGAR USED FALSIFIED FINANCIAL STATEMENTS TO WIN THE LOAN FROM WESTERN SAVINGS & LOAN ASSOCIATION OF PHOENIX AND NEVER PAID IT BACK MR KNAPP'S SAN FRANCISCO ATTORNEY JOHN J BARTKO SAID THE EVIDENCE WILL SHOW THAT THIS WAS AN UNSECURED LOAN TO A COMPANY IN FORMATION BY A FINANCIAL INSTITUTION THAT WAS FULLY INFORMED OF THE FACTS AND CIRCUMSTANCES AND CHOSE TO MAKE THE LOAN HE ADDED IN THIS ECONOMY THE FACT THAT THE COMPANY FAILED DOESN'T TURN THESE EVENTS INTO A CRIME DONALD RE A LOS ANGELES ATTORNEY FOR MR SARNO SAID HIS CLIENT WILL BE COMPLETELY VINDICATED MR NASH'S ATTORNEY COULDN'T BE REACHED FOR COMMENT 9303090091 930309 A WEEK IN THE LIFE THE PRESIDENTIAL STYLE IS EXUBERANT INFORMAL AND TOTALLY IN CONTROL BUT CLINTON SWEATS DECISIONS FROM A VISIT TO NEW YORK TO THE DETAILS OF TAX LAW BATTLING BOUTS OF INSOMNIA BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A PRIVATE MOMENT LATE LAST WEDNESDAY AFTERNOON LLOYD BENTSEN PULLED BILL CLINTON ASIDE IN THE OVAL OFFICE AND ASKED HIM THE QUESTION ON THE MINDS OF MANY OF THE PEOPLE CLOSEST TO THE NEW CHIEF EXECUTIVE ARE YOU GETTING SOME REST THE TREASURY SECRETARY INQUIRED I'M NOT OUT TO PROVE I CAN DO 20HOUR DAYS THE PRESIDENT ASSURED HIM THE QUALITY OF MY DECISIONS IS MUCH MORE IMPORTANT WITH BOUNDLESS ENERGY AND EXUBERANCE MR CLINTON HAS FIRMLY SEIZED THE REINS OF GOVERNMENT SINCE TAKING OFFICE SEVEN WEEKS AGO HE HAS MASTERED ISSUES RANGING FROM THE COMPLEXITIES OF THE FEDERAL BUDGET TO THE WACO TEXAS STANDOFF WITH AN ARMED RELIGIOUS CULT HAVING YEARNED FOR A LIFETIME TO ATTAIN THE POSITION HE NOW HOLDS HE REVELS IN WORKING THE LEVERS OF POWER TO HELP ASSESS MR CLINTON'S APPROACH TO THE JOB OF BEING PRESIDENT THE WALL STREET JOURNAL GAINED AN INSIDE LOOK AT MR CLINTON'S LIFE LAST WEEK A WEEK THAT GAVE AMPLE EVIDENCE OF BOTH THE STRENGTHS AND THE WEAKNESSES OF THE CLINTON STYLE SO FAR MR CLINTON IS PROVING TO BE A FAR BETTER CHIEF EXECUTIVE THAN MIGHT HAVE BEEN EXPECTED ON THE BASIS OF HIS SOMETIMES HAPHAZARD CAMPAIGN UNLIKE GEORGE BUSH HE HAS A CLEAR VISION OF WHAT HE WANTS TO DO UNLIKE RONALD REAGAN HE POSSESSES A TRUE COMMAND OF THE DETAILS OF HIS MANY INITIATIVES AND UNLIKE JIMMY CARTER HE IS A CONSUMMATE POLITICIAN HIS INFORMAL OPENMINDED MANAGEMENT STYLE RELIES ON A SMALL GROUP OF KEY ADVISERS TO PRESENT THE FULLEST SET OF OPTIONS ONCE HE ARRIVES AT A POLICY HE DELEGATES THE DETAILS BUT ALSO INSISTS ON REVIEWING THE FINAL DECISIONS HE CHAFES AT THE CONFINING ENVIRONS OF THE WARRENLIKE WEST WING OF THE WHITE HOUSE PREFERRING TO MEET PEOPLE FACE TO FACE BUT HE ALSO IS COMFORTABLE WORKING IN THE OVAL OFFICE IT IS STILL TOO EARLY TO TELL IF HIS METHOD WILL SERVE HIM ILL OR WELL FOR A PRESIDENT VIRTUES CAN EASILY BECOME VICES FOR PRESIDENT REAGAN THE SAME WILLINGNESS TO DELEGATE THAT LED FORTUNE MAGAZINE TO PRAISE HIS MANAGEMENT STYLE LOOKED LIKE DISENGAGEMENT ONLY A SHORT TIME LATER WHEN THE IRANCONTRA SCANDAL BROKE IN MR CLINTON'S CASE THE POTENTIAL FOR TROUBLE LURKS BEHIND EVEN HIS MOST LAUDABLE CHARACTERISTICS HIS ENTHUSIASM CAUSES HIS SCHEDULE TO BORDER ON THE FRENETIC HIS INFORMAL STYLE SOMETIMES GIVES HIS PRESIDENCY AN IMPROVISED ALMOST AD HOC QUALITY AND HE SO LOVES THE PROCESS OF MAKING POLICY AND IS SO CONCERNED ABOUT OFFENDING ANYBODY THAT HE SOMETIMES HAS TROUBLE LETTING GO OF ISSUES EVEN HIS SHEER ENERGY COULD BACKFIRE PRODUCING INTELLECTUAL AND PHYSICAL EXHAUSTION FROM THE DAY HE MOVED TO WASHINGTON HE HAS SUFFERED BOUTS OF SLEEPLESSNESS THAT HAVE WORRIED HIS WIFE AND STAFF SOME OF HIS CLOSEST FRIENDS SUCH AS WASHINGTON LAWYER VERNON JORDAN HAVE PRIVATELY WARNED THAT HE AND HIS AIDES NEED TO PACE THEMSELVES IN HIS BOOK PRESIDENTIAL POWER SCHOLAR RICHARD NEUSTADT LAID OUT THE MOST IMPORTANT ATTRIBUTES OF A SUCCESSFUL PRESIDENT AND MR CLINTON CLEARLY MEETS SEVERAL OF THE CRITERIA DEEP EXPERIENCE IN THE WORKINGS OF POLITICS ENJOYMENT OF THE JOB ITSELF AND A SEMBLANCE OF SENSE OF HUMOR TO GET THROUGH THE INEVITABLE ROUGH SPOTS WHAT ISN'T KNOWN YET IS WHETHER MR CLINTON ALSO HAS WHAT MR NEUSTADT LABELS THE UNSELFCONSCIOUS ROOTEDNESS OF PRESIDENT TRUMAN OR THE UNPRETENTIOUS SELFASSURANCE OF PRESIDENT EISENHOWER WHICH AMOUNT TO THE SELFCONFIDENCE HE WILL NEED TO WAGE THE DAUNTING BATTLES AHEAD DURING THE WEEK IN WHICH THE JOURNAL FOCUSED ON MR CLINTON'S ACTIVITIES VIRTUALLY ALL OF HIS TOP AIDES COOPERATED OFTEN ON A NOTFORATTRIBUTION BASIS PREDICTABLY THEY DIDN'T VOLUNTEER ANYTHING EMBARRASSING ABOUT THE PRESIDENT NOR DID THEY REVEAL MATTERS INVOLVING NATIONAL SECURITY EVIDENT THROUGHOUT WAS MR CLINTON'S RESTLESSNESS HIS EAGERNESS TO PLACATE CRITICS AND HIS PROBLEMS WITH MAKING FINAL DECISIONS ABOUT EVEN RELATIVELY SMALL MATTERS HE ALSO ACQUIESCED TO A PLAN FOR AN ACROSSTHEBOARD CUT IN NONMILITARY DISCRETIONARY SPENDING TO FEND OFF ATTACKS ON HIS ECONOMIC PROGRAM AND IN A TENSE MOMENT HE WAS FORCED TO YANK HIS DEFENSE SECRETARY BACK INTO LINE OVER BOSNIAN FOOD SHIPMENTS MR CLINTON ISN'T SUPPOSED TO WORK TODAY HE INTENDS TO SPEND THE WEEKEND CELEBRATING HIS DAUGHTER'S BIRTHDAY AND ENJOYING THE FRIENDS SHE HAS BROUGHT TO THE WHITE HOUSE RESIDENCE NOT A CHANCE AS USUAL MR CLINTON'S MIND KEEPS GRINDING AWAY AT THE ISSUES HE FACES AT ABOUT NOON HE REACHES FOR THE TELEPHONE AND DIRECTS THE WHITE HOUSE SWITCHBOARD TO BEEP HIS COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS WHO IS LUNCHING WITH HIS FAMILY AT THE SEQUOIA RESTAURANT OVERLOOKING THE POTOMAC RIVER MR CLINTON WANTS TO TALK ABOUT THE WORLD TRADE CENTER BOMBING SPECIFICALLY HE ASKS FOR THE UMPTEENTH TIME WHETHER HE SHOULD DIVERT HIS PLANNED TRAVEL TO NEW JERSEY THE NEXT DAY TO MAKE A SIDE TRIP TO THE BOMB SITE MR STEPHANOPOULOS ADVISES AND THE PRESIDENT AGREES THAT IT PROBABLY ISN'T A GOOD IDEA THERE ISN'T MUCH HE COULD DO EXCEPT TIE UP TRAFFIC YET THAT ISN'T THE END OF THE MATTER THEN ANOTHER CRISIS ERUPTS IN HIS OFFICE AT 3 PM MR STEPHANOPOULOS RECEIVES A CALL FROM THE FEDERAL BUREAU OF INVESTIGATION INFORMING HIM OF THE SHOOTOUT AT THE WACO HEADQUARTERS OF THE BRANCH DAVIDIAN CULT WHICH HAS LEFT FOUR FEDERAL AGENTS DEAD MR STEPHANOPOULOS IMMEDIATELY PICKS UP THE PHONE AND INFORMS THE PRESIDENT AT HIS RESIDENCE BY DINNER TIME PRESIDENT CLINTON IS STILL WORKING NOT ONLY ON THE WACO STANDOFF BUT ON THE QUESTION OF GOING TO NEW YORK HE REACHES CHIEF OF STAFF THOMAS MACK MCLARTY AT A RESTAURANT WHERE HE IS DINING WITH DEMOCRATIC SEN JOHN BREAUX OF LOUISIANA THE NEW YORK TRIP COMES UP AGAIN FINALLY MR MCLARTY PUTS AN END TO THE VACILLATION HE AND THE PRESIDENT TOGETHER DECIDE THAT MR CLINTON WON'T GO MR CLINTON ALSO SPEAKS ABOUT THE WACO SITUATION WITH DEPUTY TREASURY SECRETARY ROGER ALTMAN THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS IS PART OF HIS DEPARTMENT AND AGAIN WITH MR STEPHANOPOULOS THE COMMUNICATIONS DIRECTOR TELLS THE PRESIDENT THAT THE BEST WAY TO STAY INFORMED ABOUT WACO IS TO TURN ON CNN THE MAIN BRUNT OF THE WACO WATCH FALLS ON SECRETARY BENTSEN WHO CALLS THE PRESIDENT AT ABOUT MIDNIGHT MR CLINTON RELATES THE SITUATION TO A SIMILAR CRISIS HE FACED AS GOVERNOR OF ARKANSAS INVOLVING A RELIGIOUS CULT THEY AGREE THERE SHOULDN'T AGAIN BE A DANGEROUS FRONTAL ASSAULT ON THE WACO COMPOUND AND THAT THE BRADLEY FIGHTING VEHICLES DISPATCHED THERE SHOULD BE KEPT OUT OF SIGHT FOR FEAR OF INCITING MORE VIOLENCE THE CONVERSATION ENDS AFTER MIDNIGHT WITH THE PRESIDENT STILL WIDE AWAKE AND BRIMMING WITH MORE THOUGHTS BEFORE HEADING TO RUTGERS UNIVERSITY IN NEW JERSEY TO UNVEIL HIS NATIONALSERVICE PLAN MR CLINTON AS USUAL HAS SOME VERY SPECIFIC REQUESTS FOR HIS STAFF HE TELLS MR MCLARTY HE WANTS TO KNOW WHETHER THE BOND MARKETS WILL BE IMPEDED BY THE DAMAGE TO THE WORLD TRADE CENTER HE ALSO WANTS TO KNOW THE CONDITION OF ONE PARTICULAR ATF AGENT WHO WAS WOUNDED AT WACO JAY WILLIAM BUFORD AN ACQUAINTANCE OF HIS FROM ARKANSAS ALOFT IN HIS HELICOPTER ON THE WAY TO ANDREWS AIR FORCE BASE MR CLINTON ENGAGES IN A MOMENT OR TWO OF SIGHTSEEING THEN HE GETS DOWN TO BUSINESS INTENSELY QUESTIONING ELI SEGAL HIS TOP AIDE ON THE NATIONALSERVICE PROPOSAL IF THE NEW PROGRAM GIVES A BENEFIT FOR HIGHSCHOOL STUDENTS WHAT DOES THAT MEAN FOR THE POLICE CORPS AND THE TEACHER CORPS SHOULD THE PROGRAM FOCUS ON TRAINING FOR HIGHERSKILLED JOBS OR SHOULD THERE BE MORE LEEWAY FOR BLUECOLLAR WORK MEANWHILE BACK IN WASHINGTON CHIEF WHITE HOUSE CONGRESSIONAL LOBBYIST HOWARD PASTER DRAFTS A MEMO TO THE PRESIDENT URGING HIM TO CALL SEN DANIEL MOYNIHAN OF NEW YORK THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE TO MAKE SURE THAT EVERYTHING IS STILL ON TRACK TO BRING UP THE EXTENDED UNEMPLOYMENT BENEFITS BILL THE NEXT DAY MR PASTER GIVES THE MEMO TO JOHN PODESTA THE MASTER OF THE PRESIDENT'S HUGE PAPER FLOW FOR IMMEDIATE DELIVERY TO NEW JERSEY VIA FAX AFTER THE RUTGERS SPEECH THE PRESIDENT MAKES THE CALL THEN ON THE WAY BACK TO THE CAPITAL HE DELVES INTO A DOCUMENT HE HAD REQUESTED A 60PAGE TREATISE ON EUROPEAN SUBSIDIES TO AIRBUS INDUSTRIE FROM A BOOK WRITTEN BY HIS TOP ECONOMIC ADVISER LAURA TYSON IT IS EVENING WHEN THE PRESIDENT GETS BACK TO THE WHITE HOUSE BUT HE IS STILL GOING HE CONVENES AN OVAL OFFICE MEETING TO DISCUSS AN EVENT SCHEDULED FOR WEDNESDAY TO PREVIEW YET ANOTHER INITIATIVE HIS EFFORT TO MAKE GOVERNMENT RUN MORE EFFICIENTLY THE PRESIDENT IS SEATED IN A GOLDCOLORED CHAIR SURROUNDED BY HIS STAFF EVERYONE HAS A SAY MR CLINTON DISPLAYS IMPATIENCE WHEN ONE AIDE RAISES THE ISSUE OF WHO WILL SPEAK AT THE EVENT IN WHAT ORDER WITHOUT DIRECTLY ADDRESSING THE AIDE'S POINT THE PRESIDENT RETURNS TO THE IMPORTANCE OF THE PROGRAM ITSELF RECOUNTING HOW MUCH ARKANSANS APPRECIATED HIS EFFORTS THERE TO MAKE IT EASIER FOR PEOPLE TO GET VEHICLELICENSE PLATES BEFORE THE DAY ENDS MR MCLARTY LAYS A MEMO ON MR CLINTON'S DESK IT SAYS AMONG OTHER THINGS THAT THE BOND MARKETS ARE FINE AND DEPUTY TREASURY SECRETARY ALTMAN IS DISPATCHED TO WACO TO VISIT MR BUFORD AND THE OTHER WOUNDED AGENTS TODAY MR CLINTON IS TO VISIT CAPITOL HILL FOR SEPARATE MEETINGS WITH TOP REPUBLICAN HOUSE MEMBERS AND WITH GOP SENATORS MR CLINTON JOKES WITH HIS STAFF AS HE IS ABOUT TO ENTER THE LION'S DEN HE HAS PREPARED FOR THE MEETINGS BY READING A TWOPAGE MEMO COMPOSED BY PAUL BEGALA ONE OF HIS POLITICAL ADVISERS ON WHY WE NEED A STIMULUS PACKAGE FOR THE SHORT TERM A CONCEPT THAT MOST REPUBLICANS DOUBT THE DOCUMENT IS LADEN WITH STATISTICS BUT MR CLINTON OBVIOUSLY ABSORBS THEM THROUGHOUT THE DAY HE SPOUTS THEM EFFORTLESSLY BUT THE ECONOMY ISN'T THE ONLY THING ON THE MINDS OF HOUSE REPUBLICANS REP HENRY HYDE OF ILLINOIS COMPLAINS THAT THE GOP HASN'T BEEN BRIEFED ABOUT THE FOOD SHIPMENTS TO BOSNIA THE GUY HAS A POINT MR CLINTON TELLS MR PASTER AS THEY WALK DOWN A CAPITOL HALLWAY HE INSTRUCTS MR PASTER TO KEEP THE REPUBLICANS BETTER INFORMED AT THE SENATE MEETING MR CLINTON TEASES NEW MEXICO'S PETE DOMENICI THE TOP GOP MEMBER OF THE BUDGET COMMITTEE HE HAS LONG FOLLOWED MR DOMENICI'S CAREER ON CSPAN THE PRESIDENT SAYS AND HE IS UNSETTLED THAT THEY CAN'T AGREE ON AN ECONOMIC PLAN MR CLINTON CAN ALSO PLAY HARDBALL THOUGH AFTER GOP REP DICK ARMEY OF TEXAS MADE SOME UNCOMPLIMENTARY REMARKS DURING A RECENT WHITE HOUSE MEETING THE PRESIDENT REFUSED TO RETURN HIS TELEPHONE CALL BACK AT THE WHITE HOUSE MR CLINTON TELLS MR BEGALA THE MEETINGS WENT WELL YOU KNOW I LOVE THIS STUFF AND OFF HE GOES TO TALK SOME MORE THIS TIME TO A GROUP OF STATE TREASURERS HE LINGERS THERE LONGER THAN SCHEDULED GREETING PEOPLE BY NAME AND ARRIVES AT HIS NEXT MEETING WITH COUNTY OFFICIALS 45 MINUTES LATE LATER HE AND VICE PRESIDENT AL GORE MEET IN THE OVAL OFFICE WITH SEN JAMES EXON A MEMBER OF THE BUDGET COMMITTEE FOR NEARLY AN HOUR THE NEBRASKA DEMOCRAT HAS SOME PROBLEMS WITH MR CLINTON'S PROPOSED CHANGES IN FARM PROGRAMS IMPORTANT TO HIS CONSTITUENTS WE'RE NOT LOCKED IN CONCRETE ON ALL OF THAT' MR EXON QUOTES THE PRESIDENT I WOULD BE WILLING TO TAKE A LOOK' MR EXON COMES AWAY IMPRESSED CERTAINLY I WOULD HAVE TO RATE BILL CLINTON AS THE BEST SALESMAN THAT I GUESS I'VE EVER SEEN MR CLINTON FINALLY RETIRES TO THE FAMILY QUARTERS FOR DINNER IT IS HIS RITUAL EACH EVENING TO DINE WITH HIS WIFE AND DAUGHTER WHEN HE IS IN TOWN THEN AT ABOUT 8 PM HE RETURNS TO HIS DESK IN THE OVAL OFFICE AND DOES PAPERWORK THERE UNTIL AFTER MIDNIGHT MR CLINTON WANTS TO BE UPBEAT THIS MORNING WHERE'S REED HE CALLS OUT IN SEARCH OF BRUCE REED ONE OF HIS FAVORITE AIDES AND HE AGREES WITH MR BEGALA'S UNFLATTERING ASSESSMENT OF HIS OWN NECKTIE BUT THE LEVITY IS SHORTLIVED THIS MORNING'S NEWSPAPERS CONTAIN A TROUBLING COMMENT FROM DEFENSE SECRETARY LES ASPIN IMPLYING INCORRECTLY THAT THE BOSNIAN FOOD SHIPMENTS MIGHT BE SUSPENDED THE AGITATED CHIEF EXECUTIVE WANTS TO FIND A WAY TO QUASH THE STORY WITH HIS STAFF MR CLINTON DEVISES A STRATEGY APPOINTED DEMOCRATIC SEN BOB KRUEGER OF TEXAS IS COMING IN FOR A MEETING ABOUT THE GOVERNMENTEFFICIENCY INITIATIVE SO MR CLINTON INVITES IN REPORTERS AND PHOTOGRAPHERS THIS NOT ONLY GIVES MR KRUEGER WHO FACES A MAY 1 ELECTION A LITTLE EXTRA PUBLICITY BUT ALSO ALLOWS THE PRESIDENT TO MAKE SOME IMPROMPTU BUT ACTUALLY HIGHLY PLANNED COMMENTS CONTRADICTING HIS DEFENSE SECRETARY AIDES CLAIM MR CLINTON IS BETTER INFORMED ABOUT FOREIGN AFFAIRS THAN IS WIDELY SUSPECTED AND HE SHOWS IT AT A NATIONAL SECURITY COUNCIL MEETING SECRETARY OF STATE WARREN CHRISTOPHER IS BRIEFING ON THE MIDDLE EAST PEACE TALKS WHEN HE IS DONE THE PRESIDENT ELABORATES ON THE GEOGRAPHY OF THE GOLAN HEIGHTS LEAVING THE SECRETARY EMBARRASSED THAT HIS OWN COMMENTS WERE TOO RUDIMENTARY LATER MR CLINTON REVIEWS THE EARNEDINCOME TAX CREDIT PROPOSAL THAT HE QUIETLY ORDERED TO BE RECONSIDERED EVEN AFTER HIS BUDGET WAS FINISHED AT FIRST HE IS RELUCTANT TO ACCEPT THE NEW FORMULA THE SUBSIDY TO LOWINCOME FAMILIES FAILS BY 01 TO COMPLETELY MAKE UP FOR THE EXTRA COST THAT HIS NEW ENERGY TAX WOULD IMPOSE ON PEOPLE WHO EARN BETWEEN 20000 AND 30000 A YEAR SECRETARY BENTSEN TELLS HIM WE JUST CAN'T GET THOSE THINGS PERFECT WHEN WE'RE TALKING ABOUT SUCH ENORMOUS SUMS FINALLY MR CLINTON AGREES MR ALTMAN REPORTS ON HIS TRIP TO WACO AND HIS VISIT WITH THE PRESIDENT'S FRIEND MR BUFORD WHO WAS NICKED IN THE NOSE BY A BULLET THE PRESIDENT WANTS TO KNOW IF THERE WILL BE ANY PERMANENT SCARRING MR ALTMAN SAYS HE DOESN'T THINK SO THE LAST MEETING OF THE DAY IS WITH MR CLINTON'S SENIOR HEALTH ADVISER HILLARY RODHAM CLINTON SHE AND HEALTH AIDE IRA MAGAZINER BRIEFLY UPDATE THE PRESIDENT ON THE DELIBERATIONS OVER HIS HEALTHCARE PROPOSAL THE MEETING IS HELD IN THE WHITE HOUSE RESIDENCE SO THE CLINTONS CAN BE NEAR THEIR DAUGHTER CHELSEA WHO ISN'T FEELING WELL THERE IS NO TRAVEL TODAY NO SPEECHES JUST A PASSEL OF WHITE HOUSE MEETINGS AND PHOTO OPPORTUNITIES MR CLINTON BEGINS HIS DAY FLIPPING THROUGH FIVE NEWSPAPERS IN HIS RESIDENCE THE ARKANSAS DEMOCRAT GAZETTE THE NEW YORK TIMES USA TODAY THE WALL STREET JOURNAL AND THE WASHINGTON POST IN THE OVAL OFFICE HE REVIEWS CLIPS FROM OTHER PAPERS AS WELL AS A SUMMARY OF THE PREVIOUS EVENING'S NEWSCASTS SCRIBBLING NOTES IN THE MARGINS TO HIS AIDES IN HIS NEARLY ILLEGIBLE HANDWRITING JIMMY CARTER IS COMING IN TODAY TO TALK ABOUT HIS EFFORTS TO REVITALIZE ATLANTA WHITE HOUSE OFFICIALS ARE GENERALLY RESPECTFUL OF MR CARTER YET THE SAME ONES WHO TOUT MR CLINTON'S ABILITY TO ABSORB INFORMATION AND MASTER DETAIL TURN DEFENSIVE WHEN IT IS POINTED OUT THAT MR CARTER HAD THE SAME FACILITY MR CLINTON ARGUES ONE AIDE DOESN'T CARE WHO'S PLAYING ON THE TENNIS COURTS ONE OF THE DETAILS MR CARTER WAS FAMOUS FOR MASTERING PRIOR TO THE MEETING HOWEVER MR CLINTON APPROACHES SECRETARY OF HOUSING AND URBAN DEVELOPMENT HENRY CISNEROS WITH A VERY CARTERLIKE QUESTION WHAT IS THE STATUS HE INQUIRES OF THE 202 PROGRAM MR CISNEROS ASSURES THE PRESIDENT THAT 202 THE MAIN PROGRAM FOR CONSTRUCTING NEW HOUSING FOR THE ELDERLY WON'T BE ROLLED INTO ANOTHER PROGRAM AS SOME OFFICIALS HAD SUGGESTED MR CLINTON IS PLEASED THE PRESIDENT THEN ASKS ABOUT HOW TO TARGET AID TO SOUTH FLORIDA STILL RECOVERING FROM HURRICANE ANDREW MR CISNEROS HAS BEEN DESIGNATED THE ADMINISTRATION'S STORM CZAR AND HAS GIVEN MR CLINTON A LENGTHY MEMO ABOUT HOW TO PROCEED ACKNOWLEDGING THE ADVICE THE PRESIDENT SAYS HE IS CONSIDERING THE BEST WAY TO ANNOUNCE HIS PROGRAM GOING TO SOUTH FLORIDA HIMSELF OR ISSUING A STATEMENT IN WASHINGTON AND SENDING MR CISNEROS MR CLINTON ULTIMATELY DECIDED NOT TO GO HIMSELF IT IS FINALLY TIME FOR HIS STAFF TO GET TOUGH WITH THE PRESIDENT THIS MORNING HE HAS A SESSION WITH THE PRESS AND HIS COMMUNICATIONS AIDES ARE PREPPING HIM BY ASKING THE NASTIEST QUESTIONS THEY CAN THINK OF IS YOUR POLICY IN BOSNIA MEANT TO CREATE MORE ETHNIC CLEANSING MR STEPHANOPOULOS INQUIRES THE REAL QUESTIONS WHEN THEY COME TURN OUT TO BE A GOOD DEAL TAMER MR CLINTON ACKNOWLEDGES THE DIP IN THE UNEMPLOYMENT RATE REPORTED THIS MORNING BUT SAYS IT DOESN'T NEGATE THE NEED FOR JOBCREATING LEGISLATION THAT AFTERNOON MR CLINTON MEETS WITH HIS ECONOMIC ADVISERS IN THE ROOSEVELT ROOM TO DISCUSS THEIR LEGISLATIVE STRATEGY AS EVER HE IMMERSES HIMSELF IN THE DETAILS AT ONE POINT HE ASKS WHETHER THE CONGRESSIONAL BUDGET OFFICE WILL REESTIMATE HIS BUDGET PLAN BEFORE IT IS VOTED ON IN AUGUST HE HOPES AN IMPROVING ECONOMY BY THEN WILL INCREASE THE AGENCY'S ESTIMATE OF HOW MUCH SAVINGS HIS DEFICITREDUCTION PLAN CONTAINS BUT WHITE HOUSE BUDGET DIRECTOR LEON PANETTA TELLS HIM THAT THE REESTIMATE WON'T HAPPEN UNTIL LATER HOW THEN TO DEAL WITH THE GROWING CRITICISM ON CAPITOL HILL OF HIS PROGRAM TO SELECTIVELY INCREASE SPENDING WITH THE ASSISTANCE OF ROBERT RUBIN THE HEAD OF THE NATIONAL ECONOMIC COUNCIL THE PRESIDENT REVIEWS ALL THE OPTIONS INCLUDING EVEN DISCARDING THE INVESTMENT PROGRAM ENTIRELY A COURSE NO ONE IN THE ROOM TAKES SERIOUSLY ANOTHER OPTION IS TO DROP PART OF IT THE STAFF'S CONSENSUS IS THAT THE PROGRAM MUST BE RETAINED IN ITS ENTIRETY AND MR CLINTON CONCURS BUT TO ACCOMPLISH THAT THE ADVISERS TELL HIM ADDITIONAL SPENDING CUTS WILL HAVE TO BE FOUND THE IDEA THAT SEEMS TO FIT BEST WITH THE PRESIDENT'S PROGRAM IS AN ACROSSTHEBOARD CUT IN NONMILITARY DISCRETIONARY SPENDING THE DECISION IS THAT MR CLINTON WON'T OFFER SUCH A PROPOSAL HIMSELF BUT WHEN THE IDEA EMERGES FROM CONGRESS AS IT SURELY WILL HE WILL ACCEPT IT THE LIKELY FORUM FOR THE COMPROMISE IS A SERIES OF WHITE HOUSE MEETINGS THIS WEEK WITH DEMOCRATIC MEMBERS OF THE CONGRESSIONAL BUDGET COMMITTEES AT THE END OF THE DAY MR CLINTON AND MR MCLARTY MEET AND BRIEFLY REVIEW THE WEEK ONE FOCUS OF CONCERN DID THEY TRY TO DO TOO MUCH TOO FAST IT'S SOMETHING EVERY PRESIDENT HAS TO BE MINDFUL OF MR MCLARTY SAYS BUT IN THE END THEY DECIDE THE AGENDA IS PROCEEDING AT JUST ABOUT THE RIGHT PACE ON THIS DAY FINALLY THE PRESIDENT RESTS THE SCHEDULE IS LIGHT THERE IS ONLY THE WEEKLY RADIO ADDRESS FROM THE OVAL OFFICE A POSSIBLE GOLFING DATE WHICH DIDN'T MATERIALIZE AND DINNER WITH HIS WIFE AND SOME FRIENDS AT A COZY WASHINGTON RESTAURANT OTHERWISE THE DAY IS SPENT WITH HIS FAMILY IN THE LIVING QUARTERS BEFORE THE RADIO ADDRESS MR MCLARTY SEES THE PRESIDENT FOR THE ONLY TIME TODAY HE REMARKS HOW BRIGHTEYED MR CLINTON APPEARS EVEN THOUGH HE HASN'T YET GONE FOR HIS MORNING JOG I SLEPT VERY WELL LAST NIGHT THE PRESIDENT BEAMS 9303090090 930309 LEISURE & ARTS BOOKSHELF THE POOR AND THE PRIVILEGED BY BRUCE BAWER FOR MOST OF US WRITING IS LONELY WORK NOT FOR MARTHA GELLHORN WHO HAS SPENT MANY OF HER 85 YEARS AS A REALLIFE VERSION OF THE GLOBETROTTING JOURNALIST PLAYED BY KATHARINE HEPBURN IN WOMAN OF THE YEAR TOUGH PLUCKY AND IMPULSIVE THE BRYN MAWR DROPOUT DODGED BULLETS IN THE SPANISH CIVIL WAR WAS ON THE BEACH AT NORMANDY ON DDAY LENT A SYMPATHETIC EAR TO NICARAGUAN REVOLUTIONARIES AND ENDURED A FIVEYEAR MARRIAGE TO ERNEST HEMINGWAY THAT ROUGHLY COINCIDED WITH AND BORE MORE THAN A PASSING RESEMBLANCE TO WORLD WAR II TO READ HER RECENT COMPILATIONS OF REPORTAGE THE FACE OF WAR AND THE VIEW FROM THE GROUND IS TO GET THE IMPRESSION THAT SHE'S BEEN EVERYWHERE AND MET EVERYBODY IT IS ALSO TO NOTE THAT SHE'S ONE OF THOSE SMART PEOPLE WITH STUPID POLITICS CALLING FIDEL CASTRO'S CUBA A COMMUNIST SUCCESS STORY SHE DECLARES HERSELF TOO MUCH OF AN INDIVIDUALIST TO BE A TEAM PLAYER BUT WISHES THIS TEAM IE CUBA WELLAPPARENTLY UNPERTURBED BY THE KNOWLEDGE THAT ON CASTRO'S TEAM THERE ARE NO FREE AGENTS MS GELLHORN'S TRAVELS AND POLITICS HAVE HEAVILY INFLUENCED HER FICTION OF WHICH SHE'S WRITTEN A CONSIDERABLE AMOUNT TAKE THE FOUR EARLIEST WORKS IN HER SURPRISINGLY STRONG NEW COLLECTION THE NOVELLAS OF MARTHA GELLHORN KNOPF 625 PAGES 2750 FIRST BROUGHT TOGETHER IN 1936 UNDER THE TITLE THE TROUBLE I'VE SEEN THIS QUARTET OF STEINBECKIAN PORTRAITS OF THE NOBLE POOR DERIVED FROM HER WORK AS AN INVESTIGATOR FOR THE FEDERAL EMERGENCY RELIEF AGENCY MS GELLHORN HAS A GIFT FOR HIGHLEVEL LOBBYING IN A TIME OF RECORD UNEMPLOYMENT SHE TALKED FDR HONCHO HARRY HOPKINS INTO CREATING THE JOB FOR HER LACKING BOTH THE SHAPE AND DEPTH OF GOOD NOVELS AND THE PUNCH AND FOCUS OF FIRSTRATE SHORT STORIES THESE EARLY NOVELLAS ARE DUTIFUL METICULOUSLY OBSERVED AND OCCASIONALLY MELODRAMATIC VICTIM STORIES THEIR TONE SUFFERING MORE THAN A BIT FROM THE UNCONSCIOUS CONDESCENSION THAT IS SOMETIMES IN EVIDENCE WHEN AN AUTHOR WRITES ABOUT PEOPLE DUMBER THAN SHE IS THERE'S AN UNDERTONE OF SELFCONGRATULATION TOO ISN'T IT VIRTUOUS OF ME SHE OFTEN SEEMS TO BE SAYING TO NOTICE THESE DETAILS OF THESE COARSE LITTLE LIVES BUT DOES SHE YES SHE GETS THE CLOTHES AND FURNITURE RIGHT BUT SHE DOESN'T HAVE A POWERFUL ATTACHMENT TO THESE PEOPLE AS INDIVIDUALS ONLY A GENERALIZED CURIOSITY CONCERN AND SENSE OF OBLIGATION WHICH ARE ENOUGH FOR A REPORTER PERHAPS BUT NOT AN ARTIST IN THE 10 NOVELLAS THAT WERE ORIGINALLY COLLECTED IN TWO BY TWO 1958 AND TWO LATER VOLUMES MS GELLHORN LEAVES BEHIND TARPAPER SHACKS FOR MANHATTAN TOWNHOUSES AND EUROPEAN PALAZZOS TO BE SURE THE WELFARE OF THE LOWER ORDERS REMAINS A KEY THEME IN ONE STORY AN ITALIAN PRINCE'S FATHER THWARTS HIS ATTEMPTS TO IMPROVE THE LOT OF THE PEASANTS IN ANOTHER THE WIFE OF A YOUNG BRITISH MEMBER OF PARLIAMENT DISDAINS HIS DESIRE TO HELP INDIGENT NATIVES IN THE COLONIES YET THE POOR EXIST HERE ONLY TO HELP US SEPARATE THE GOOD GUYS NOBS WHO CARE ABOUT THE LESS FORTUNATE FROM THE BAD GUYS NOBS WHO DON'T MS GELLHORN'S POST1930S NOVELLAS INDEED CENTER ON PRIVILEGED TYPES AND ON THE CALLOUSNESS AND DUPLICITY THAT MARK SOME OF THEM AS BAD GUYS AT TIMES QUITE COMPELLINGLY SHE DEPICTS A WORLD IN WHICH LIVES ARE FOUNDED ON AND IN WHICH SUCCESS DEATH AND DOWNFALL ALIKE CAN BE TRACED TO EXPEDIENT FALSEHOODS IN THE CLEVER ONE AN AUSTRIAN REFUGEE RISES TO PARTNERSHIP IN A HIGHTONED NEW YORK LAW FIRM BY HIDING HIS JEWISHNESS ONLY TO BE FLEECED BY A WOMAN WHO'S LIVING AN EVEN BIGGER LIE THAN HE IS IN TILL DEATH US DO PART A FAMED WAR PHOTOGRAPHER BASED ON MS GELLHORN'S FRIEND ROBERT CAPA IS SHOT DEAD WHILE FAKING A PHOTO ADULTERY FIGURES PROMINENTLY IN THESE LATER FICTIONS AN AMBITIOUS ENGLISH HEADMASTER'S CAREER IS RUINED BY AN INDISCREET LIAISON AN INGENUOUS WOMAN STUNNED BY THE NEWS THAT HER HUSBAND KEEPS A MISTRESS PAYS HIM BACK BY TAKING A LOVER ONE CHARACTER AFTER ANOTHER SELLS OUT FAMILY RACE PRINCIPLES OR MATRIMONIAL VOWS FOR PERSONAL COMFORT SAFETY OR SUCCESS YET THERE ARE GOOD GUYS HERE AS WELL NOTABLY THE DIFFIDENT ENGLISHMAN WHO IN THE AFFECTING NOVELLA IN THE HIGHLANDS BECOMES STEPFATHER TO A MULATTO GIRL ON HIS KENYA PLANTATION MANY OF THESE WORKS TAKE PLACE AGAINST A VIVID BACKDROP OF 20THCENTURY HISTORY THEIR URGENCY AND SIGNIFICANCE ENHANCED BY EVENTS RANGING FROM HITLER'S RISE TO THE MAU MAU REVOLT UNOBTRUSIVELY MS GELLHORN NOTES THE WAYS IN WHICH PUBLIC AFFAIRS AND PRIVATE LIVES INFLUENCE AND IMPINGE UPON EACH OTHER MORE SHE UNDERSCORES THE PARALLELS BETWEEN A PERSON'S EVASION OF MARITAL OR FAMILY RESPONSIBILITIES AND HIS OR HER NEGLECT OF CIVIC OBLIGATIONS IMPLICIT THROUGHOUT IS THAT A SINGLE ETHICAL LAW OBTAINS IN BOTH REALMS AND THAT SOLEMN MORAL COMMITMENTS ARE IMPLICIT IN EVERY HUMAN RELATIONSHIP ALAS EVEN MS GELLHORN'S BEST NOVELLAS SUFFER FROM HER INCLINATION TO DIVIDE PEOPLE RATHER TOO TIDILY INTO GOOD AND BAD AND TO RESCUE THE FORMER FROM SEEMINGLY INEVITABLE TRAGIC ENDINGS YET HER CRISP PELLUCID STYLE HER KEEN EYE FOR LOCAL COLOR AND IRONIES OF CIRCUMSTANCE AND HER UNERRING EAR FOR THE DIALOGUE OF MIDWESTERN WIDOWS ENGLISH LORDS AND TANZANIAN DOMESTICS ALIKE GIVE THE FINEST OF THESE NOVELLAS A WIT VIGOR AUTHENTICITY AND MORAL WISDOM THAT RECALL SUCH WRITERS AS SOMERSET MAUGHAM AND KATHERINE ANNE PORTER 9303090089 930309 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOREIGN ENTERPRISES IN JAPAN WILL GET HELP FROM THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY IN STARTING OPERATIONS IN THE JAPANESE MARKET AND SELLING IMPORTED PRODUCTS THERE MITI WILL ESTABLISH A BUSINESS SUPPORT CENTER AT THE GOVERNMENTFINANCED JAPAN EXTERNAL TRADE ORGANIZATION ON MARCH 25 TO HELP FOREIGN COMPANIES ENGAGE IN TRANSACTIONS WITH PROSPECTIVE JAPANESE BUYERS THE CENTER WILL PROVIDE FREE OFFICES FOR AS LONG AS TWO MONTHS TO FOREIGN ENTERPRISES WHILE THEY ARE LOOKING FOR THEIR OWN OFFICE SPACE IN JAPAN THE PLAN ALSO CALLS FOR CREATION OF A CORPORATION TO BE CAPITALIZED AT ONE BILLION YEN 85 MILLION WITH JOINT GOVERNMENT AND PRIVATESECTOR BACKING TO HELP FOREIGN ENTERPRISES ENTER JAPAN'S MARKET MITI WILL INVITE FOREIGN FIRMS TO SEMINARS ON JAPANESE BUSINESS PRACTICES AND HELP THEM RECRUIT JAPANESE EMPLOYEES POLAND RECEIVED APPROVAL FOR AN INTERNATIONAL MONETARY FUND CREDIT OF 476 MILLION TO SUPPORT THE COUNTRY'S ECONOMIC AND FINANCIAL REFORMS THIS YEAR POLAND WANTS TO USE 25 OF THE STANDBY CREDIT FOR FOREIGN DEBT REDUCTION WHICH THE IMF SAID IT MAY CONSIDER IF POLAND REACHES TERMS WITH ITS COMMERCIALBANK CREDITORS THE MAIN OBJECTIVES OF POLAND'S ECONOMIC PROGRAM THIS YEAR ARE A LASTING CUT IN INFLATION AND CREATION OF CONDITIONS TO SUSTAIN HIGH GROWTH THE IMF NOTED SUCCESSES SINCE POLAND IN 1990 ADOPTED MARKETORIENTED POLICIES DESPITE A BUMPY TRANSFORMATION ABOUT 25000 WORKERS IN COLOMBIA'S BIGGEST BANANAPRODUCING REGION BEGAN A STRIKE TO PROTEST REBEL AND PARAMILITARY VIOLENCE THAT HAS LEFT MORE THAN 40 PEOPLE DEAD IN THE PAST THREE WEEKS THE NATIONAL AGRICULTURAL WORKERS UNION LED THE WALKOUT IN THE URABA REGION COVERING THE CARIBBEAN COAST AND ANTIOQUIA CHOCO AND CORDOBA PROVINCES NORTHWEST OF BOGOTA COLOMBIA IS LATIN AMERICA'S THIRDBIGGEST BANANA EXPORTER AFTER ECUADOR AND COSTA RICA URABA PRODUCES 70 OF COLOMBIA'S BANANA EXPORTS TOTAL SHIPMENTS ARE VALUED AT 250 MILLION A YEAR WITH MORE THAN HALF GOING TO WESTERN EUROPE SPAIN ANNOUNCED A LONGRANGE PLAN TO IMPROVE INFRASTRUCTURE MAINLY THE TRANSPORTATION NETWORK TO MEET EUROPEAN COMMUNITY STANDARDS OF THE 18 TRILLION PESETAS 15116 BILLION TO BE PUMPED INTO BIG PROJECTS OVER THE NEXT 15 YEARS THREEFOURTHS WILL BE LARGELY AIMED AT BUILDING AND IMPROVING HIGHWAYS AS WELL AS RAILWAYS PORTS AND AIRPORTS OTHER SPENDING IS EARMARKED FOR WATER PROJECTS COASTALAREAS IMPROVEMENTS AND RENOVATIONS AND INFRASTRUCTURE RESEARCH REBELS IN BRITAIN'S CONSERVATIVE PARTY JOINED OPPOSITION PARTIES TO EXTEND THE DELAY IN APPROVING THE EUROPEAN COMMUNITY'S UNION TREATY THE ACTION IN THE HOUSE OF COMMONS WAS AN EMBARRASSMENT FOR PRIME MINISTER JOHN MAJOR TEN EC MEMBERS HAVE RATIFIED THE TREATY FOR MONETARY AND POLITICAL INTEGRATION DENMARK IS THE OTHER HOLDOUT BRITISH LEGISLATORS APPROVED A MINOR AMENDMENT A PROCEDURAL OBSTRUCTION THAT MAY KEEP THE RATIFICATION BILL BOGGED DOWN UNTIL MIDYEAR EUROPEAN COMMUNITY FOREIGN MINISTERS APPROVED REVISIONS IN A LANDMARK ACCORD TO CREATE THE EUROPEAN ECONOMIC AREA OF ALMOST 400 MILLION CONSUMERS FROM ICELAND TO GREECE THE CHANGES WERE REQUIRED AFTER SWISS VOTERS REJECTED THE PACT TO LINK THE OTHER SIX MEMBERS OF THE EUROPEAN FREE TRADE ASSOCIATION WITH THE 12 EC STATES EXPANDING THE EC'S NEW BARRIERFREE MARKET THE MINISTERS SET JULY 1 FOR THE ZONE'S OPENING BUT THAT PROBABLY WON'T OCCUR UNTIL LATE THIS YEAR AS ALL 18 NATIONS MUST RATIFY THE PACT INDIA'S CONSUMERGOODS INDUSTRY MIRED IN A TWOYEAR SLUMP HAS CUT PRICES BETWEEN 5 AND 12 SINCE THE GOVERNMENT BUDGET LAST MONTH REDUCED EXCISE DUTIES ON PRODUCTS HURT BY RECESSION BUSINESSES EXPECT A REVIVAL OF CONSUMER DEMAND ALSO CITING LOWER IMPORT DUTIES AND INTEREST RATES INDUSTRY OFFICIALS NOTING THE STIMULUS HAS ALREADY BEGUN TO WORK ARE OPTIMISTIC ABOUT DOUBLEDIGIT GROWTH IN PRODUCTION THIS YEAR PRIOR TO THE NEW BUDGET AUTOS COLOR TELEVISION SETS AIR CONDITIONERS HOUSEHOLD APPLIANCES AND MANY PERSONALCARE PRODUCTS WERE REGARDED AS LUXURY ITEMS AND HEAVILY TAXED LEVIES ALSO WERE CUT ON PRODUCTS RANGING FROM CHEAPER ITEMS SUCH AS COOKIES TO THOSE IN BETWEEN SUCH AS LUGGAGE AND BATTERIES AS WELL AS INDUSTRIAL PRODUCTS SUCH AS CHEMICALS ALUMINUM PLYWOOD AND SYNTHETIC YARNS IN DOING THIS THE GOVERNMENT EXPECTS TO LOSE MORE THAN 685 MILLION OR 7 OF LAST YEAR'S EXCISEDUTY REVENUE BUT NOT EVERYONE IS SATISFIED THE COMPUTER INDUSTRY IS CUTTING PRICES BETWEEN 7 AND 10 BUT IT MAINTAINS THAT DUTIES ON HARDWARE IMPORTS ARE STILL TOO HIGH APPEALS BY JAPAN'S TRADING PARTNERS TO OPEN ITS RICE MARKET TO IMPORTS IS OPPOSED BY 47 OF JAPANESE AND FAVORED BY 42 AN ASAHI SHIMBUN NEWSPAPER POLL FOUND JAPANESE PAY 2 1/2 TIMES MORE THAN NORTH AMERICANS DO FOR RICE AND MORE THAN SIX TIMES AS MUCH AS SOME OF THEIR ASIAN NEIGHBORS THE EUROPEAN COMMUNITY SIGNED AN ASSOCIATION ACCORD WITH BULGARIA RAISING TO SIX THE NUMBER OF EAST EUROPEAN NATIONS TO GET GENEROUS TRADE BENEFITS AND CLOSER POLITICAL TIES 9303090088 930309 REVIEW & OUTLOOK EDITORIAL DETAILS DETAILS AS JOE BIDEN'S JUDICIARY COMMITTEE TODAY UNDERTAKES ITS INQUIRIES INTO THE BELIEFS AND BACKGROUND OF PRESIDENT CLINTON'S THIRDROUND DRAFT PICK FOR ATTORNEY GENERAL WE CERTAINLY HOPE THE SENATORS WILL ASK FOR JANET RENO'S THOUGHTS ON ENFORCEMENT OF THE ANTIDEFICIENCY ACT AND THE FEDERAL ADVISORY COMMITTEE ACT CERTAINLY HILLARY RODHAM CLINTON WOULD BE INTERESTED IN MS RENO'S VIEWS THESE LAWS CURRENTLY SIT AS TWO FLIES IN THE OINTMENT OF THE CLINTONS' PLANS FOR HEALTHCARE REFORM DUE BY MAY 1 ESSENTIALLY BY APPOINTING HIS WIFE TO BE THE UNPAID HEAD OF A TASK FORCE THAT REFUSES TO MEET IN PUBLIC IT LOOKS AS IF MR CLINTON MAY BE VIOLATING TWO LITTLEKNOWN BUT VERY STUBBORN FEDERAL LAWS FIRST FACA AFFECTIONATELY PRONOUNCED FOCKA BY AFICIONADOS OF THE LAW THE 1972 LAW REQUIRES THAT ALL MEETINGS OF ADVISORY COMMITTEES AND SUBCOMMITTEES MUST BE OPEN TO THE PUBLIC ITS DEFINITION OF ADVISORY COMMITTEE IS PRECISE ANY COMMITTEE BOARD COMMISSION COUNCIL CONFERENCE PANEL TASK FORCE OR OTHER SIMILAR GROUP WHICH IS ESTABLISHED OR UTILIZED BY THE PRESIDENT AN EXCEPTION IS MADE FOR ANY COMMITTEE WHOLLY MADE UP OF FEDERAL OFFICERS OR EMPLOYEES THE FIRST LADY AT LEAST UNTIL NOW HAS OCCUPIED A KIND OF POLITICAL NETHERWORLD NEITHER A FEDERAL OFFICER NOR A FEDERAL EMPLOYEE UNDER FACA MEETINGS NOT ONLY MUST BE OPEN TO THE PUBLIC BUT MUST GIVE ADVANCE NOTICE IN THE FEDERAL REGISTER INTERESTED PARTIES MUST BE PERMITTED TO APPEAR OR ATTEND OR FILE STATEMENTS IF A MEETING IS CLOSED THERE HAS TO BE AN EXPLANATION IN ADVANCE COMMITTEE RECORDS AND DETAILED MINUTES OF EVERY MEETING MUST BE MADE AVAILABLE TO THE PUBLIC THE PRESIDENT'S SECRETIVE HEALTH CARE TASK FORCE DOES NONE OF THIS IT HAS NEVER HELD A FORMAL MEETING ITS TWO DOZEN OR SO WORKING GROUPS ARE STAFFED BY 300 TO 400 HEALTH CARE EXPERTS WHOSE IDENTITIES THE WHITE HOUSE REFUSES TO DISCLOSE AND WHOSE DELIBERATIONS ARE KEPT SECRET ITS BUDGET IS UNSPECIFIED WHEN ASKED ABOUT THE STATUS OF THOSE WORKING ON THE TASK FORCE WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID I DON'T KNOW WHAT THE SPECIFICS ARE AND WHO'S PAID AND WHO'S NOT PAID MANY HEALTH CARE ORGANIZATIONS THINK THE FIRST LADY'S TASK FORCE NEEDS TO COME OUT IN THE OPEN IN A LAWSUIT FILED LAST MONTH THREE GROUPS THE ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS THE AMERICAN COUNCIL FOR HEALTH CARE REFORM AND THE NATIONAL LEGAL AND POLICY CENTER CITING FACA ASKED THAT THE TASK FORCE BE REQUIRED TO DELIBERATE IN PUBLIC THE ADMINISTRATION IS FIGHTING THE SUIT IT ARGUES THAT THE WIVES OF THE PRESIDENT AND VICE PRESIDENT ARE DE FACTO FEDERAL WORKERS THE JUSTICE DEPARTMENT SAYS THE FIRST LADY IS THE FUNCTIONAL EQUIVALENT OF A GOVERNMENT EMPLOYEE BUT IF THAT'S TRUE MRS CLINTON'S APPOINTMENT BECOMES THE FUNCTIONAL EQUIVALENT OF A VIOLATION OF THE FAMOUS BOBBY KENNEDY STATUTE THE ANTINEPOTISM LAW THAT PROHIBITS GOVERNMENT OFFICIALS FROM GIVING JOBS TO RELATIVES AS JFK DID TO HIS BROTHER THE ADMINISTRATION ALSO MAINTAINS THAT FACA UNCONSTITUTIONALLY INTERFERES WITH THE PRESIDENT'S RIGHT TO GIVE ADVICE TO CONGRESS WHAT'S MOST IRONIC ABOUT THIS IS THAT THROWING SUNSHINE ON ANY AND ALL MEETINGS WAS ONE OF THE GREAT LIBERAL CAUSES OF YEARS BACK THIS OPEN GOVERNMENT MOVEMENT LED TO THE ENACTMENT OF SUNSHINE LAWS SUCH AS FACA IN THE EARLY '70S A FEDERAL JUDGE HAS SAID HE WOULD RULE ON THE SUIT THIS WEEK THE OTHER LEGAL TROLL UNDER THE CLINTONS' HEALTH CARE BRIDGE IS THE ANTIDEFICIENCY ACT DATING BACK MORE THAN 100 YEARS IT PROHIBITS GOVERNMENT OFFICIALS FROM ACCEPTING VOLUNTARY SERVICES THAT IS LETTING PEOPLE WORK FOR NO PAY ITS PURPOSE IS TO PROTECT CONGRESS'S POWER OF THE PURSE AND TO AVOID CREATING FUTURE GOVERNMENT LIABILITIES FOR SERVICES RENDERED THERE ARE SOME STATUTORY EXCEPTIONS BUT THE FIRST LADY VOLUNTEERING HER WORKDAY IN THIS MANNER ISN'T AMONG THEM DEFENDERS OF MRS CLINTON'S APPOINTMENT COULD SAY THERE IS NO REASONABLE EXPECTATION THAT THE FIRST LADY WOULD LATER DEMAND PAYMENT IN FACT THE LAW MAKES NO SUCH EXCEPTION EVEN SO IF MRS CLINTON CAN'T DONATE HER SERVICES THE RFK ANTINEPOTISM LAW MAKES IT CLEAR THAT SHE CAN'T GET PAID FOR THEM EITHER AWKWARD AS THEY MAY BE FACA AND THE ANTIDEFICIENCY ACT AREN'T MERELY INCONVENIENT DETAILS THAT THE NEW ADMINISTRATION CAN ROLL OVER THEY ARE THE LAW OF THE LAND AND IN THE CASE OF THE ANTIDEFICIENCY ACT HAVE A FAMOUS HISTORY NORMALLY THE WAY A PRESIDENT GETS AROUND THEM IS TO HAVE HIS ATTORNEY GENERAL GET UP SOME LANGUAGE EXPLAINING THEM OUT OF THE WAY THAT'S WHAT FRANKLIN ROOSEVELT DID TO THE ANTIDEFICIENCY ACT WHEN HE TRANSFERRED DESTROYERS TO BRITAIN WHAT WE'RE WONDERING IS WILL JANET RENO BE WILLING TO DO THE SAME FOR THIS PRESIDENT 9303090087 930309 HEALTH CURING HEALTH CARE REPORT CARD ON QUALITY AND EFFICIENCY OF HMOS MAY PROVIDE A MODEL FOR OTHERS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL UNITED HEALTHCARE CORP WILL UNVEIL TODAY A KIND OF REPORT CARD ON ITS HEALTH SERVICES THAT PROVIDES THE FIRST DETAILED INFORMATION ABOUT THE QUALITY AND EFFICIENCY OF A MAJOR HEALTH PROVIDER'S CARE THE REPORT CARD REPRESENTS A MAJOR ADVANCE IN THE EFFORT TO DEVELOP OBJECTIVE MEASURES OF HEALTHCARE QUALITY SO THAT EMPLOYERS AND CONSUMERS CAN COMPARE THE PERFORMANCES OF COMPETING HEALTH PLANS IT IS EXPECTED TO LEAD TO THE DEVELOPMENT OF A STANDARDIZED SYSTEM FOR COLLECTING AND PUBLISHING HEALTHQUALITY DATA THIS IS THE FIRST ORGANIZATION THAT HAS PUBLICLY DISCLOSED ITS RESULTS ACROSS SEVERAL DIMENSIONS OF QUALITY SAYS ROBERT BROOK DIRECTOR OF HEALTH SCIENCES AT RAND CORP A THINK TANK IN SANTA MONICA CALIF THEY'RE SHOWING WHAT THEY'VE DONE WARTS AND EVERYTHING IT'S A MAJOR COURAGEOUS STEP TODAY'S ANNOUNCEMENT PUTS UNITED HEALTHCARE AT THE FOREFRONT OF A REVOLUTION THAT IS SWEEPING US MEDICINE THERE IS A NATIONAL OBSESSION WITH TRYING TO DEVELOP TOOLS TO EVALUATE AND PURCHASE HEALTH CARE BASED ON QUALITY SAYS DAVID NASH DIRECTOR OF HEALTH POLICY AND CLINICAL OUTCOMES AT THOMAS JEFFERSON UNIVERSITY HOSPITAL PHILADELPHIA MANY EXPERTS BELIEVE FINDING WAYS TO MEASURE QUALITY IS FUNDAMENTAL TO ANY STRATEGY TO BRING HEALTH COSTS UNDER CONTROL AND EXTEND CARE TO 35 MILLION UNINSURED AMERICANS WE ARE BUILDING HEALTH POLICY ON THE NOTION THAT THE HEALTHCARE SYSTEM CAN BE HELD ACCOUNTABLE FOR ITS PERFORMANCE SAYS SHEILA LEATHERMAN PRESIDENT OF UNITED HEALTHCARE'S CENTER FOR HEALTH CARE POLICY AND EVALUATION WHICH PRODUCED THE REPORT CARD BUT THERE IS A DEARTH OF DATA AVAILABLE TO UNDERSTAND HOW THE SYSTEM WORKS THE REPORT CARD IS A RESPONSE TO THAT NEED UNDERSCORING THE INTENSE POLITICAL INTEREST THE COMPANY WILL ANNOUNCE ITS REPORT CARD AT A CAPITOL HILL PRESS CONFERENCE 1000 MILES AWAY FROM ITS CORPORATE HEADQUARTERS IN MINNEAPOLIS REPUBLICAN SEN DAVID DURENBERGER OF MINNESOTA WILL BE AMONG THE PARTICIPANTS PROPOSALS UNDER CONSIDERATION BY THE CLINTON ADMINISTRATION ENVISION HEALTH PLANS COMPETING FOR MEMBERS ON THE BASIS OF PRICE AND QUALITY NO STANDARD METHODS EXIST FOR COMPARING PLANS BASED ON THE VALUE OF THE CARE THEY PROVIDE AT THE SAME TIME WIDE VARIATIONS IN MEDICAL PRACTICE RAISE THE POSSIBILITY THAT AS MANY AS ONETHIRD OF MEDICAL PROCEDURES MAY BE UNNECESSARY OR OF LITTLE BENEFIT A STUDY IN THE CURRENT NEW ENGLAND JOURNAL OF MEDICINE FOR INSTANCE SHOWS THAT PAYMENTS TO DOCTORS TREATING MEDICARE PATIENTS ARE TWICE AS HIGH IN MIAMI AS IN SAN FRANCISCO WITH NO EVIDENCE THAT MIAMI'S ELDERLY ARE ANY SICKER OR FARE ANY BETTER AS A RESULT THE FINDINGS REFLECT A BROAD LACK OF CONSENSUS OVER HOW TO BEST TREAT DOZENS OF COMMON DISEASES RESEARCHERS SAY BUT QUALITY INITIATIVES GENERATE CONTROVERSY AS WELL AS DATA POORER PERFORMERS ALMOST ALWAYS CLAIM THEY TREAT SICKER PATIENTS EVEN THOUGH RESULTS ARE OFTEN ADJUSTED TO ACCOUNT FOR SUCH DIFFERENCES WHEN THE PENNSYLVANIA HEALTH CARE COST CONTAINMENT COUNCIL PUBLISHED COST AND DEATHRATE DATA ON HOSPITALS AND HEART SURGEONS LAST NOVEMBER SOME HOSPITALS COMPLAINED THAT THEIR RELATIVELY HIGH MORTALITY RATES REFLECTED TOUGH CASES THAT WERE REFERRED FROM HOSPITALS THAT RANKED AMONG THE BEST IN THE REPORT DOCTORS WARNED THAT PUBLIC RANKINGS WOULD PROMPT SURGEONS TO TURN AWAY HIGHRISK CASES OTHERS WORRY THAT IF QUALITY DATA ARE USED TO PUNISH POOR PERFORMERS EFFORTS TO IMPROVE OVERALL CARE WILL BE UNDERMINED WHEN QUALITY MEASUREMENT IS ALWAYS NEGATIVE IT CREATES DISTRUST AND FEAR SAYS MARGARET E O'KANE PRESIDENT OF THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE A NONPROFIT GROUP IN WASHINGTON MOREOVER DEVELOPING STANDARD DATA IS FFICULT BECAUSE EXPERTS DEFINE THE SAME MEASURES IN VARYING WAYS FOR INSTANCE SOME DEFINE A PREMATURE BABY BY WEIGHT WHILE OTHERS USE LENGTH OF PREGNANCY MANY EFFORTS TO IMPROVE QUALITY ARE AIMED AT HOSPITAL CARE THE MOST COSTLY SEGMENT OF THE HEALTHCARE SYSTEM IN CLEVELAND FOR INSTANCE THE BUSINESSLED CLEVELAND HEALTH QUALITY CHOICE PROJECT HAS SPENT THREE YEARS DEVELOPING METHODS TO EVALUATE QUALITY FOR A VARIETY OF HOSPITALBASED SERVICES AND IS EXPECTED TO RELEASE ITS FIRST REPORT WITHIN A FEW WEEKS IN CINCINNATI 14 HOSPITALS AND THEIR DOCTORS ARE USING A SYSTEM DEVELOPED BY IAMETER INC SAN MATEO CALIF TO REDUCE WIDE VARIATIONS IN THE LENGTH AND COST OF PATIENT HOSPITAL STAYS PROCTER & GAMBLE CO KROGER CO CINCINNATI BELL INC AND A UNIT OF GENERAL ELECTRIC CO ALL SPONSORS OF THE PROJECT EXPECT TO USE THE RESULTS TO MAKE HEALTHCARE PURCHASES LATER THIS YEAR UNITED HEALTHCARE'S REPORT CARD FOCUSES ON MEASURES OF PREVENTIVE AND PRIMARY CARE AS WELL AS ADMINISTRATIVE EFFICIENCY AND COST REDUCTION WHILE LATER VERSIONS ARE LIKELY TO INCLUDE HOSPITAL SERVICES THE VAST MAJORITY OF EXPERIENCES THAT MOST AMERICANS HAVE WITH THE HEALTHCARE SYSTEM ARE WITH PRIMARY CARE MS LEATHERMAN SAYS THE COMPANY IS A PARTICIPANT IN A LARGER INDUSTRY EFFORT INVOLVING THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE AND 30 MAJOR HEALTH MAINTENANCE ORGANIZATIONS AND INSURERS TO DEVELOP A COMMON SET OF QUALITY INDICATORS AND STANDARDS FOR GATHERING ANALYZING AND REPORTING DATA PRELIMINARY MEASURES UNDER CONSIDERATION WOULD TRACK A HEALTH PLAN'S SUCCESS IN PROVIDING CHILDHOOD VACCINATIONS BREAST AND CERVICAL CANCER SCREENING TESTS AND EARLY PRENATAL CARE FOR ALL MEMBERS WHO SHOULD GET SUCH SERVICES ANOTHER MEASURE MAY BE HOSPITAL RATES FOR CHILDREN WITH ASTHMA A POTENTIAL INDICATOR OF THE QUALITY OF PRIMARY CARE THESE CHOICES REFLECT THE GROWING IMPORTANCE OF PREPAID HMOS AND OTHER ORGANIZATIONS THAT SEEK TO MANAGE THE DELIVERY OF CARE TO SAVE COSTS MANAGED CARE CHANGES THE FOCUS OF MEDICINE FROM A SINGLE PATIENT TO A POPULATION OF PATIENTS SAYS RAND'S DR BROOK IT'S NOT GOOD ENOUGH FOR A DOCTOR TO MAKE SURE THAT EVERY 50YEAROLD WOMAN WHO COMES TO THE OFFICE GETS A MAMMOGRAM HE EXPLAINS ALL OF A SUDDEN WE'RE SAYING YOU'RE RESPONSIBLE FOR EVERYBODY ON YOUR LIST OF PATIENTS' THAT'S A VERY DIFFERENT WAY OF PRACTICING MEDICINE THE UNITED HEATHCARE REPORT CARD IS BASED ON THE RECENT PERFORMANCE OF THE 20 HMOS WITH A TOTAL OF MORE THAN 19 MILLION MEMBERS THAT THE COMPANY OWNS OR MANAGES AROUND THE US IT SAYS FOR EXAMPLE THAT 60 OF WOMEN BETWEEN 50 AND 75 HAD ANNUAL MAMMOGRAMS COMPARED WITH 29 NATIONALLY AND THAT 57 OF WOMEN HAD ANNUAL PAP TESTS FOR CERVICAL CANCER SLIGHTLY BETTER THAN AVERAGE IT ALSO SHOWS THAT 1992 PREMIUMS ROSE 12 AT THE HIGH END FOR HMOS NATIONALLY BUT LESS THAN FEEFORSERVICE PLANS WHICH INCREASED RATES AS MUCH AS 28 THE COMPANY'S 20 HMOS WILL HAVE THEIR OWN INDIVIDUAL REPORT CARDS FOR USE IN LOCAL MARKETS BY LATE SUMMER RELEASING THESE DATA IS A CALCULATED RISK MS LEATHERMAN ACKNOWLEDGES THE LACK OF COMPARABLE DATA AND THE FACT THAT THE DATA FALL SHORT OF PERFECTION IN ESSENTIALLY EVERY MEASURE COULD BACKFIRE BUT UNLESS SOMEONE STARTS DOING THIS SHE SAYS WE'RE GOING TO WALLOW IN RHETORIC ABOUT QUALITY AND NOT MAKE PROGRESS TOWARD ESTABLISHING STANDARD PERFORMANCE MEASURES THE COMPANY IS ALSO BETTING THAT PUBLISHING ITS RESULTS WILL GIVE ITS HMOS A COMPETITIVE ADVANTAGE AND PUT PRESSURE ON OTHERS TO DEVELOP SIMILAR DATA BEYOND COMPETING FOR PATIENTS EACH PLAN IS EXPECTED TO USE THE DATA TO IMPROVE CARE AT OCEAN STATE PHYSICIANS HEALTH PLAN A PROVIDENCE RI HMO OWNED BY UNITED HEALTHCARE OFFICIALS ARE TRACKING MEMBERS WITH DIABETES TO MAKE SURE THAT THEY GET REGULAR EYE EXAMS BLOOD TESTS FOOT CARE AND OTHER SERVICES FOR NOW THESE MEASURES WILL DEMONSTRATE WHETHER A DOCTOR SUCCEEDS AT PERSUADING DIABETICS TO FOLLOW GOOD HEALTH PRACTICES LONG TERM WE'RE GOING TO BE LOOKING FOR IMPROVEMENT AMONG PATIENTS SAYS TINA BROWNSTEVENSON OCEAN STATE'S VICE PRESIDENT MEDICAL MANAGEMENT LESS BLINDNESS FEWER LEG ULCERS FEWER AMPUTATIONS BELOW THE KNEE UNTIL THE PLAN CAN PROVE SUCH THINGS AS ITS ABILITY TO REDUCE THOSE CONSEQUENCES OF DIABETES WE WON'T HAVE ACHIEVED WHAT WE REALLY WANT TO ACHIEVE SHE SAYS ROLE IN CHANGING THE HEALTHCARE SYSTEM BUT THERE'S LITTLE INFORMATION TO HELP THEM DO IT DATA ON RELEVANT INDICATORS OF HEALTHCARE COST AND QUALITY 9303090086 930309 MY DEFICITREDUCTION PLAN BY HANK BROWN PRESIDENT CLINTON CHALLENGED CRITICS OF HIS TAX INCREASES TO COME FORWARD WITH THEIR OWN SPECIFIC PROPOSALS TO REDUCE THE DEFICIT LAST WEEK I PRESENTED THE PRESIDENT WITH A PLAN THAT WOULD CUT THE DEFICIT BY 679 BILLION OVER THE NEXT FIVE YEARS THE PLAN PROPOSES TO DO THIS BY CUTTING SPENDING AND NOT RAISING TAXES THERE ARE MANY IN CONGRESS WHO BELIEVE THAT IMPROVING THE ECONOMY AND AMERICAN COMPETITIVENESS IN WORLD MARKETS WILL COME FROM ELIMINATING WASTEFUL PROGRAMS NOT FROM INCREASING THE TAX BURDEN ON WORKING AMERICANS IRONICALLY NONE OF THE PLAN'S 679 BILLION IN CUTS ARE DRACONIAN WHILE SPECIAL INTEREST GROUPS WILL OPPOSE THEM THE GENERAL PUBLIC WILL WONDER WHY CONGRESS SPENT MONEY ON THE PROGRAMS TO BEGIN WITH THE PLAN CUTS 94 BILLION IN DEFENSE SPENDING AND ELIMINATES 338 BILLION IN MANDATORY SPENDING INCREASES AND 147 BILLION IN DISCRETIONARY SPENDING DURING THE NEXT FIVE YEARS SOCIAL SECURITY WOULD NOT BE AFFECTED OVERALL THE PLAN INCLUDES 117 SPECIFIC SPENDING REDUCTIONS ASK YOURSELF IF YOU WOULD RATHER PAY HIGHER TAXES OR MAKE THE FOLLOWING CUTS SAVINGS REFLECT TOTAL SAVINGS OVER THE FIVEYEAR BUDGET CYCLE FISCAL 199498 CUT THE WHITE HOUSE STAFF AND MORE IMPORTANT CONGRESSIONAL STAFFS BY 25 MR CLINTON'S MUCH PUBLICIZED CUTS IN THE WHITE HOUSE STAFF REQUIRED CAREFULLY REDEFINING IT SO THAT MANY EXECUTIVEOFFICE SLOTS REMAINED UNTOUCHED FUNDING DROPPED BY ONLY 5 EVEN A 25 CUT WOULD LEAVE CONGRESS WITH A STAFF SIX TIMES BIGGER THAN THE LEGISLATIVE STAFF OF ANY OTHER COUNTRY IN THE WORLD SAVES 39 BILLION LIMIT THE INCREASE IN ENTITLEMENT PROGRAMS TO INCREASES IN THE COST OF LIVING PLUS THE COSTS OF ADDING NEW BENEFICIARIES THIS COULD ALLOW 4 TO 7 INCREASES NEXT YEAR IN MEDICARE FOR INSTANCE BUT NO MORE THAN THAT SAVES 257 BILLION CUT BACK ON OVERHEAD THE GOVERNMENT CURRENTLY SPENDS NEARLY 180 BILLION A YEAR ON TRAVEL SUPPLIES PRINTING AND RENT IF YOU SIMPLY FREEZE THE COST OF OVERHEAD IN THE GOVERNMENT'S BUDGET FOR TWO YEARS AND THEN LIMIT INCREASES THEREAFTER BY THE COST OF LIVING YOU SAVE 459 BILLION CUT BACK IN DEFENSE WITH THE END OF THE COLD WAR WE CAN MAKE SIGNIFICANT REDUCTIONS IN THE MILITARY AND STILL MAINTAIN OUR ABILITY TO MEET CURRENT THREATS TO OUR NATIONAL SECURITY IF WE ADOPT PRESIDENT BUSH'S PROPOSALS TO REDUCE DEFENSE SPENDING PROPOSALS LESS DRASTIC ALTHOUGH MORE PRUDENT THAN MR CLINTON'S WE WOULD STILL SAVE MORE THAN 748 BILLION CANCEL THE C17 TRANSPORT PLANE THE C17 LIKE OTHER WASTEFUL DEFENSE PROGRAMS OUTSIDE THE BUSH CUTS HAS BEEN PLAGUED WITH MAJOR COST OVERRUNS AND IT HAS FAILED TO MEET ITS TARGETED GUIDELINES IN BOTH RANGE AND PAYLOAD IN FACT THE AIR FORCE'S C5 IS A MUCH MORE RELIABLE CARGO PLANE AND COSTS 102 MILLION LESS PER PLANE THAN THE C17 SAVES 86 BILLION TRIM BACK BOTH CIVILIAN AND MILITARY INTELLIGENCE INTELLIGENCE FUNCTIONS ARE NOW OVERSTAFFED WITH DUPLICATIVE AGENCIES BY REQUIRING A 25 REDUCTION OF BOTH MILITARY AND CIVILIAN INTELLIGENCE PERSONNEL WE WILL SAVE 85 BILLION ELIMINATE OTHER FARM SUBSIDIES AND UNEMPLOYMENT COMPENSATION TO THE WEALTHY THOSE WITH NET TAXABLE INCOMES OVER 120000 A YEAR OR CORPORATIONS WITH NET EARNINGS OVER 5 MILLION A YEAR THE SUBSIDY PROGRAM OF THE COMMODITY CREDIT CORPORATION FOR EXAMPLE WAS ESTABLISHED IN THE MIDST OF THE DEPRESSION TO PROVIDE PROTECTION FOR STRUGGLING FARMERS NOW IT SUBSIDIZES THE WEALTHY BY PAYING THEM FOR PRODUCING DAIRY PRODUCTS SUGAR RICE FEED GRAIN AND OTHER COMMODITIES SAVES 28 BILLION CUT BACK ON WHAT THE FEDERAL GOVERNMENT PAYS TO UNIVERSITIES FOR RESEARCH AND DEVELOPMENT AMAZINGLY THE OVERHEAD COSTS ON UNIVERSITY RESEARCH GRANTS CAN EXCEED 50 OF THE DIRECT COST OF DOING THE RESEARCH MY PLAN SUGGESTS LIMITING OVERHEAD TO 50 THE CAP WILL NOT ONLY SAVE 1 BILLION BUT WILL ALSO PROMOTE GREATER EFFICIENCY BY PROVIDING INCENTIVES FOR UNIVERSITIES TO MINIMIZE THEIR COSTS ELIMINATE COSTOFLIVING RAISES FOR FEDERAL EMPLOYEES IN FISCAL 1994 AND LIMIT THEM TO ONE PERCENTAGE POINT BELOW THE CONSUMER PRICE INDEX FOR FISCAL 199597 SAVES 113 BILLION LIMIT CARGO PREFERENCE LAWS THESE REQUIRE THAT 100 OF MILITARY CARGO AT LEAST 75 OF US FOODAID CARGO AND AT LEAST 50 OF OTHER GOVERNMENT CARGO BE SHIPPED ON US FLAG SHIPS SINCE THESE SHIPS HAVE FREIGHT RATES THAT ARE TWO TO THREE TIMES HIGHER THAN THOSE ON THE INTERNATIONAL MARKET THE GOVERNMENT SUBSIDIZES THE HIGHER TRANSPORTATION COSTS AS A RESULT THE TAXPAYER PAID MORE THAN 1 BILLION IN 1991 CARGO PREFERENCE COSTS MY PROPOSAL WILL LIMIT CARGO PREFERENCE TO THOSE US SHIPPERS WITH COMPETITIVE RATES AND SAVE 3 BILLION OVER FIVE YEARS REPEAL THE DAVISBACON ACT WHICH REQUIRES THAT FEDERAL CONSTRUCTION CONTRACTORS PAY A PREVAILING WAGE ON PROJECTS OVER 2000 THIS SUPER MINIMUM WAGE SET BY THE LABOR DEPARTMENT UNNECESSARILY INFLATES FEDERAL CONSTRUCTION COSTS SAVES 33 BILLION ENACT THE PORKBUSTERS BILL THIS BILL ELIMINATES FEDERAL PROJECTS LIKE A RECENT 1 MILLION GRANT TO STUDY THE EFFECTS OF STRESS ON PLANTS THAT HAVE BEEN INSERTED INTO LEGISLATION COVERTLY IN CONFERENCE COMMITTEES BUT NEVER PROPERLY AND KNOWINGLY AUTHORIZED BY CONGRESS SAVES 2 BILLION ELIMINATE COMMUNITY DEVELOPMENT BLOCK GRANTS THESE ARE MEANT TO GIVE FEDERAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS TO IMPROVE THE SAFETY AND HEALTH OF THEIR COMMUNITIES IN VARIOUS WAYS THEY ARE RIFE WITH FRAUD AND MISMANAGEMENT IN DELAWARE COUNTY PA FOR EXAMPLE COMMUNITYGRANT DOLLARS WERE USED FOR LAVISH PARTIES BROADWAY TICKETS MODEL AIRPLANES AND VIDEOS SAVES 142 BILLION CUT BACK THE AMTRAK SUBSIDY SINCE 1970 AMTRAK HAS RECEIVED NEARLY 16 BILLION OF TAXPAYERS' MONEY YET IT PROVIDES LESS THAN 1 OF TOTAL US TRAVEL EVEN THOUGH CONGRESS INTENDED THAT AMTRAK BE OPERATED AND MANAGED AS A FORPROFIT CORPORATION THE GOVERNMENT SUBSIDIZES IT TO THE TUNE OF 30 PER PASSENGER OUR PLAN WOULD REQUIRE AMTRAK TO ELIMINATE SERVICE ON ROUTES WHERE REVENUES GENERATED TO DO NOT COVER AT LEAST 80 OF COSTS SAVES 1 BILLION CUT BACK ON US PARTICIPATION IN CERTAIN INTERNATIONAL ORGANIZATIONS THE US NOW PAYS DUES TO NUMEROUS ANTICONSUMER ORGANIZATIONS SUCH AS THE JUTE RUBBER AND TROPICAL TIMBER ORGANIZATIONS AND THE COFFEE CARTEL BY ENACTING EXPORT QUOTAS AND SETTING PRICES THESE ORGANIZATIONS CREATE PRICE LEVELS THAT ARE HIGHER THAN THEY WOULD BE IN A FREE MARKET THE FEDERAL GOVERNMENT WOULD SAVE 17 MILLION OVER FIVE YEARS BY WITHDRAWING FROM INTERNATIONAL ORGANIZATIONS THAT ACT DIRECTLY OR INDIRECTLY AGAINST US CONSUMER INTERESTS IN ADDITION AMERICAN CONSUMERS WOULD SAVE TENS OF BILLIONS OF DOLLARS EACH YEAR ON THE PRODUCTS THEY PURCHASE THIS IS BY NO MEANS AN EXHAUSTIVE LIST IT IS A STARTING POINT THE HOPE IS THAT EVERY MEMBER OF CONGRESS WILL COME UP WITH HIS OWN WAYS OF SAVING THE TAXPAYERS' MONEY IT IS A FANTASY TO PRETEND AMERICA WILL BE ECONOMICALLY BETTER OFF BY INCREASING FEDERAL SPENDING AND OVERHEAD A STRONG ECONOMY MEANS GREATER EFFICIENCY NOT MORE PORK SEN BROWN R COLO IS A MEMBER OF THE SENATE BUDGET COMMITTEE 9303090085 930309 WHY I'M LEAVING GOVERNMENT FOR A DRUG FIRM BY STEVEN M PAUL I AM THE SCIENTIFIC DIRECTOR OF THE INTRAMURAL RESEARCH PROGRAM OF THE NATIONAL INSTITUTE OF MENTAL HEALTH PART OF THE NATIONAL INSTITUTES OF HEALTH I HEAD THE LARGEST AND ARGUABLY MOST SUCCESSFUL GOVERNMENTFUNDED CENTRAL NERVOUS SYSTEM CNS RESEARCH PROGRAM IN THE WORLD MY FEDERAL CAREER WITH ITS OPPORTUNITIES TO DO EXCITING SCIENCE AND BE OF BENEFIT TO OTHERS HAS BROUGHT ME IMMENSE SATISFACTION YET IN JUST A FEW WEEKS I WILL BE LEAVING MY GOVERNMENT POSITION TO BECOME VICE PRESIDENT FOR CNS RESEARCH AT ELI LILLY CO IN INDIANAPOLIS I WILL BE JOINING THE INDUSTRY THAT PRESIDENT CLINTON HAS ACCUSED OF PURSUING PROFITS AT THE EXPENSE OF OUR CHILDREN IT IS IMPORTANT FOR ME TO EXPLAIN WHY FOR I THINK THE ATTACK ON THE DRUG COMPANIES BY THE ADMINISTRATION AND ITS FRIENDS SHOWS A MISUNDERSTANDING OF THE PROCESS BY WHICH MEDICINES ARE DISCOVERED AND BROUGHT TO BEAR ON HUMAN DISEASE THIS MISUNDERSTANDING AND THE ANGRY RHETORIC IT PRODUCES THREATEN THE FUTURE OF DRUG DEVELOPMENT AND THE SUCCESS OF THE HEALTHCARE REFORM THAT IS ONE OF MR CLINTON'S CHIEF POLICY OBJECTIVES THE ATTRACTION OF MY NEW JOB IS NOT PRIMARILY FINANCIAL MY SALARY HERE AT NIMH IS MORE THAN COMFORTABLE I AM LEAVING GOVERNMENT BECAUSE OF THE REAL EVEN LIKELY POSSIBILITY THAT IN THE PRIVATE SECTOR I WILL MAKE A DIRECT CONTRIBUTION TO DISCOVERING AND DEVELOPING DRUGS TO TREAT SOME OF THE WORLD'S MOST DEVASTATING BRAIN DISORDERS THIS MISSION IS NOTHING LESS THAN NOBLE WHETHER IT IS PURSUED BY PUBLIC AGENCIES OR BY PRIVATE COMPANIES MOREOVER THE DEVELOPMENT OF DRUGS VACCINES MEDICAL DEVICES AND DIAGNOSTICS HAS BEEN AND WILL BE OUR MOST POWERFUL MEANS OF SAVING HEALTHCARE DOLLARS MR CLINTON'S RECENT CHARGES AGAINST AMERICAN DRUG COMPANIES HAVE NEVER ACKNOWLEDGED THE TRUE VALUE OF DRUGS AND VACCINES WE HAVE A DUTY TO REMEMBER THE HUMAN SUFFERING ALLEVIATED BY MODERN VACCINES FOR POLIO RUBELLA WHOOPING COUGH MEASLES AND OTHER SUCH DISEASES OR BY THE NEW GENERATION OF ANTIBIOTIC ANTIHYPERTENSIVE ANTIULCER AND ANTIPSYCHOTIC DRUGS INTRODUCED OVER THE PAST 10 YEARS RETROSPECTIVE ANALYSES OF THE PERFORMANCE OF TODAY'S DRUGS AND VACCINES SHOW STAGGERING COST SAVINGS SUCH DRUGS PROMISE TO BE EVEN MORE BENEFICIAL IN THE FUTURE AS A PRACTICING PHYSICIAN I KNOW THAT PRESENT TREATMENTS FOR DISEASES LIKE AIDS ALZHEIMER'S DISEASE CANCER AND SCHIZOPHRENIA ARE NOT VERY EFFECTIVE SUCH ILLNESSES NOW REQUIRE EXTENSIVE MEDICAL INTERVENTION LONGTERM HOSPITALIZATION OR EVEN CHRONIC INSTITUTIONALIZATION AT INCREDIBLE PERSONAL AND FINANCIAL COST BUT BIOMEDICAL RESEARCH IS IN THE MIDST OF A REVOLUTION THAT IS TRANSFORMING OUR BASIC UNDERSTANDING OF DISEASE AND OUR ABILITY TO DIAGNOSE AND TREAT PREVIOUSLY HOPELESS CONDITIONS IF THE PHARMACEUTICAL INDUSTRY'S CRITICS SERIOUSLY CONSIDER THE MORAL AND ECONOMIC CONSEQUENCES OF SUCH A PROSPECT I CANNOT BELIEVE THAT THEY WILL IGNORE OR MISCHARACTERIZE IT AS THEY HAVE DONE SO FAR THE GOVERNMENT CANNOT PRODUCE THESE NEW MEDICINES OUR CONTRIBUTIONS ARE VALUABLE BUT OUR PROGRAMS DO BASIC RELATIVELY NONTARGETED RESEARCH WE SIMPLY DO NOT HAVE THE MONEY PERSONNEL OR ORGANIZATION NEEDED TO DEVELOP SPECIFIC DRUGS AND TAKE THE HIGH RISKS OF BRINGING THEM TO MARKET SOME THINK THAT THE DRUG COMPANIES' RATIO OF MARKETING EXPENSES TO RESEARCH COSTS IS TOO HIGH BUT ELI LILLY JUST ONE SUCH COMPANY SPENDS ALMOST 1 BILLION A YEAR ON HIGHQUALITY RESEARCH AS MUCH AS NIH SPENDS ON ALL ITS INTRAMURAL RESEARCH PROGRAMS TOGETHER THUS THE MEDICINES WE NEED CAN BE FOUND AND DEVELOPED ONLY THROUGH PRIVATE ENTREPRENEURSHIP THIS ENTREPRENEURSHIP CANNOT SIMPLY BE COUNTED ON AS AN AUTOMATIC OUTGROWTH OF PROFITSEEKING PUBLIC AUTHORITIES CAN EASILY ERODE THE MORALE OF A CHANCETAKING ENTERPRISE LIKE THE PHARMACEUTICAL INDUSTRY AND SEND ITS PEOPLE SCURRYING FOR SAFER WAYS TO GENERATE CORPORATE INCOME THE ADVERSARIAL RELATIONSHIP WITH THE INDUSTRY THAT THE ADMINISTRATION AND OTHER OFFICIALS ARE PROMOTING BY CHARACTERIZING ITS PEOPLE AS PREDATORS CREATES DISINCENTIVES TO CREATIVITY AND ITS CONSEQUENT INNOVATION IN THE 1992 PRESIDENTIAL ELECTION I VOTED FOR BILL CLINTON BECAUSE HE BASED HIS CAMPAIGN ON THE POLITICS OF INCLUSION AND DIVERSITY HE CONVINCED ME THAT HE STRONGLY SUPPORTED US BUSINESS AND TECHNOLOGY AND THAT HE RECOGNIZED THEIR CONTRIBUTION TO OUR WELFARE I DO NOT UNDERSTAND WHY A PRESIDENT SO INTENT ON IMPROVING THIS COUNTRY'S HEALTH REDUCING ITS MEDICAL COSTS AND INCREASING ITS DOMESTIC AND INTERNATIONAL ECONOMIC PERFORMANCE THROUGH HIGHTECHNOLOGY PURSUITS WOULD SINGLE OUT FOR CRITICISM AN INDUSTRY THAT HAS MADE OUTSTANDING CONTRIBUTIONS ON ALL THREE FRONTS THERE ARE QUESTIONS ABOUT THE PRICES AND AVAILABILITY OF DRUGS AND VACCINES THAT ARE SERIOUS AND MUST BE DISCUSSED BUT THE ANSWERS ARE COMPLICATED ONES AND SHOULD NOT BE REDUCED TO DEMAGOGIC RHETORIC I ASK THE PRESIDENT TO ELEVATE THIS DISCUSSION BY BEGINNING A REASONED DIALOGUE WITH THE PHARMACEUTICAL INDUSTRY ABOUT THE PUBLIC DECISION THAT WILL AFFECT ITS FUTURE WE ALL NEED AN ENVIRONMENT THAT ALLOWS THE INDUSTRY TO PROSPER AND SUPPORT CONTINUING SCIENTIFIC CREATIVITY AS MR CLINTON HAS ELOQUENTLY STATED WE IN THIS COUNTRY DO NOT HAVE A SINGLE INDIVIDUAL TO WASTE CAN WE AFFORD TO WASTE A SUCCESSFUL INDUSTRY AND THE IMMENSE BENEFITS THAT IT STANDS READY TO BRING US DR PAUL IS THE SCIENTIFIC DIRECTOR OF THE NATIONAL INSTITUTE OF MENTAL HEALTH 9303090084 930309 MARKETING & MEDIA CABLE WARS MUST CONTINUE WITHOUT MINNESOTA VILLAGE THE VILLAGE OF ELBOW LAKE MINN AGREED TO SELL ITS MUNICIPALLY OWNED CABLE SYSTEM TO THE LOCAL PHONE COOPERATIVE AFTER ENDURING A BRUISING PRICE WAR WITH THE INCUMBENT CABLE OPERATOR IT SOUGHT TO COMPETE AGAINST ELBOW LAKE WHICH WAS FEATURED IN A SEPTEMBER 1992 FRONTPAGE ARTICLE IN THIS NEWSPAPER ABOUT THE LACK OF CABLE COMPETITORS WILL RECEIVE 275000 TO 375000 FOR ITS SYSTEM WHICH SERVES ABOUT 300 SUBSCRIBERS AND WAS BUILT FOR AN ORIGINAL INVESTMENT OF 285000 WHILE FEDERAL RULES BLOCK MAJOR PHONE COMPANIES FROM OPERATING CABLE SYSTEMS IN THEIR SERVICE AREAS THE LOCAL COOPERATIVE RUNESTONE TELEPHONE ASSOCIATION CAN MAKE THE PURCHASE BECAUSE OF AN EXEMPTION FOR AREAS WITH FEWER THAN 2500 RESIDENTS THE TOWN ORIGINALLY BUILT ITS OWN CABLE SYSTEM BECAUSE OF YEARS OF COMPLAINTS FROM RESIDENTS ABOUT HIGH RATES AND POOR SERVICE ON THE PART OF THE ESTABLISHED CABLE OPERATOR TRIAX COMMUNICATIONS CORP WE NOW HAVE THE THREE THINGS WE WANTED WHEN WE BUILT THIS SYSTEM RATE STABILITY GOOD PICTURE QUALITY AND GOOD SERVICE SAYS JEFF HOLSON CITY CLERK OF ELBOW LAKE RUNESTONE HAS A GOOD TRACK RECORD HERE AND WITH THIS AGREEMENT WE HAVE CONFIDENCE THEY WILL CONTINUE IN THIS DIRECTION THE PURCHASE AGREEMENT CALLS FOR A 15YEAR PAYMENT PLAN 200000 IN CASH UP FRONT PLUS 35 PER SUBSCRIBER FOR THE FIRST FIVE YEARS 25 PER SUBSCRIBER FOR THE SECOND FIVE YEARS AND 20 PER SUBSCRIBER FOR THE FINAL FIVE YEARS 9303090083 930309 INTERNATIONAL BRIEF KLOECKNERHUMBOLDTDEUTZ AG ENGINEERING GROUP REPORTS BREAKEVEN RESULTS FOR 1992 GERMAN MACHINERY AND ENGINEERING GROUP KLOECKNERHUMBOLDTDEUTZ AG REPORTED BREAKEVEN CONSOLIDATED GROUP RESULTS FOR 1992 ON SALES OF 367 BILLION MARKS 22 BILLION KHD'S RESULTS MARKED A TURNAROUND FROM THE FIRST SIX MONTHS OF THE YEAR IN WHICH IT HAD LOSSES OF 29 MILLION MARKS KHD ALSO BROKE EVEN ON OPERATIONS THE GROUP SAID IN A LETTER TO SHAREHOLDERS KHD ALSO NOTED THAT IT HAD MANAGED TO BOOST ORDERS BY 1 TO NEARLY 37 BILLION MARKS IN 1992 KHD REPEATED ITS PREDICTION FROM JANUARY THAT IT WOULD ALSO BREAK EVEN IN 1993 WITH THE FIRST HALF ONCE AGAIN WEAKER THAN THE SECOND HALF 9303090082 930309 REVIEW & OUTLOOK EDITORIAL HIRING HELL WE HEARD THE OTHER DAY FROM A BUSINESSMAN WHOSE STORY MAY TELL A LOT ABOUT CALIFORNIA'S ECONOMIC PROBLEMS AND ALSO ABOUT WHY EMPLOYERS IN GENERAL HAVE A HARDER TIME GETTING GOOD REFERENCES FOR PEOPLE THEY WANT TO HIRE GARY SUTTON IS AN INVESTOR AND TURNAROUND SPECIALIST WHO FOR THE PAST THREE YEARS HAS BEEN PRESIDENT OF ONE OF HIS PROPERTIES KNIGHT PROTECTIVE INDUSTRIES OF NORTH HOLLYWOOD IT SELLS SECURITY MEASURES BY WHICH A DISPATCHER USING AN INTERCOM LINK WITH A HOME ALERTS POLICE OR PARAMEDICS AS NEEDED OBVIOUSLY THAT POSITION REQUIRES A LEVEL TEMPER MORE THAN A YEAR AGO MR SUTTON HAD TO FIRE A NICE GUY WHO NEVERTHELESS HAD FLAREUPS SOME OF WHICH WERE BIZARRE ACCORDING TO MR SUTTON THE MAN ONCE STOPPED BY THE OFFICE ON A SATURDAY AND INTERRUPTED A MEETING OF MANAGERS GOING ON INSIDE COMMANDING THEM TO GET A LIFE THE MEETING WAS BEING VIDEOTAPED AND THUS THE OUTBURST WAS RECORDED MONTHS AFTER THE FIRING HOWEVER THE STATE DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING APPROACHED KNIGHT WITH THE EMPLOYEE'S COMPLAINT THAT HE'D BEEN AXED BECAUSE HE WAS BLACK MR SUTTON MARSHALED EVIDENCE OF NONDISCRIMINATION NOTING THAT KNIGHT'S PAYROLL WAS ONETHIRD BLACK AND THAT BLACKS HAD RECEIVED SOME OF THE HIGHEST RECENT RAISES AT THE COMPANY THE PROCESS HE SAYS MADE HIM CATEGORIZE HIS WORKERS BY RACE IN A WAY HE'D NEVER WANTED TO BEFORE MR SUTTON SAYS THE STATE AGENT RENEE ACKEL SUGGESTED THE CASE COULD BE RESOLVED BY EXPUNGING THE DISMISSAL FROM THE EMPLOYEE'S RECORD AND INDICATING A VOLUNTARY RESIGNATION INSTEAD AND FURTHER SAID THIS WAS A COMMON WAY OF HANDLING SUCH MATTERS MR SUTTON SAYS THE STATE IS ADVISING HIM TO FALSIFY FILES AND THAT DOING SO COULD SUBJECT A FUTURE EMPLOYER TO SIMILAR OR WORSE ACTS BY THE EMPLOYEE AND KNIGHT TO A LAWSUIT IF SOMETHING HORRENDOUS OCCURRED MS ACKEL WHILE DECLINING TO DISCUSS THE SPECIFIC CASE SAYS HER DEPARTMENT SCREENS COMPLAINTS BEFORE APPROACHING EMPLOYERS FOR SETTLEMENTS AND ONCE AT THAT STAGE SEEKS FOREMOST TO RESOLVE MATTERS SHORT OF FORMAL ADJUDICATION SHE DENIES ROUTINELY ASKING THAT FILES BE ALTERED SAYING WE SETTLE MAINLY FOR MONEY BUT INDICATES THAT NEUTRAL REFERENCES ARE BECOMING THE NORM ANYWAY INDEED THEY ARE THANKS TO THE MANY SUITS FILED AGAINST EMPLOYERS WHO DARE TO TELL THE TRUTH OR THEIR VERSION OF IT TO THOSE INQUIRING ABOUT A FORMER OR CURRENT WORKER THIS HAS FORCED SOME COMPANIES TO RELY ON ACCESSIBLE DATABANKS THAT MIGHT IMPLY A CHARACTER PROFILE OF A CANDIDATE STUFF THAT MIGHT BE CONSIDERED FAR MORE INTRUSIVE THAN A JOB EVALUATION MORE OFTEN THE PROSPECTIVE HIRER STAYS IN THE DARK ON THIS MOST IMPORTANT BUSINESS DECISION AND DECIDES EITHER TO TAKE A CHANCE OR FORGET THE APPLICANT EITHER WAY INFORMATION COSTS HAVE BEEN RAISED AND THE ECONOMY IS A NET LOSER MS ACKEL INSISTS THAT HER AGENCY IS VIEWED AS A FRIEND BY CALIFORNIA EMPLOYERS FAR MORE JUDICIOUS AND LESS ARBITRARY IN ITS DEALINGS THAN FOR EXAMPLE THE WORKERS' COMPENSATION PROCESS FOR HIS PART MR SUTTON TICKS OFF OTHER TRIPS HE'S HAD THROUGH THE FAIR EMPLOYMENT WRINGER AFTER A MERITED FIRING WE'RE LUCKY IF WE NET 5 ON SALES YET WE SPEND 20 OF OUR TIME ON THIS KIND OF STUFF SOMETHING HAS GONE VERY WRONG IN OUR LABOR MARKETS AND THIS IS PART OF IT CALIFORNIA'S PROBLEMS ARE THE NATION'S WRIT LARGE 9303090081 930309 COMING HOME PRIMERICA'S WEILL PLANS BROKERAGE POWERHOUSE BY BUYING SHEARSON TOUGH TURNAROUND SPECIALIST OFFERS AMERICAN EXPRESS 1 BILLION FOR PART OF UNIT THE OUTLOOK COST CUTTING BY MICHAEL SICONOLFI AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SANFORD I WEILL ALWAYS SEEMED TO WANT SOMETHING BIGGER EVEN WHEN BUILDING ONE FINANCIAL EMPIRE AFTER ANOTHER WITHIN DAYS HE MAY FINALLY GET WHAT HE WANTS MR WEILL'S PRIMERICA CORP IS IN DISCUSSIONS TO BUY THE BROKERAGE OPERATIONS OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT FOR ABOUT 1 BILLION PEOPLE FAMILIAR WITH THE TALKS SAY THE COMBINATION PRIMERICA ALREADY OWNS SMITH BARNEY HARRIS UPHAM & CO WOULD CREATE A BROKERAGEINDUSTRY POWERHOUSE WITH 11400 BROKERS AND NEARLY 500 BRANCHES THAT CHALLENGES MERRILL LYNCH & CO AS THE NATION'S BIGGEST SECURITIES FIRM BUYING SHEARSON WOULD BE A HOMECOMING OF SORTS FOR THE 59YEAROLD MR WEILL IN THE 1970S AND 1980S MR WEILL BUILT SHEARSON LOEB RHOADES BY PATCHING TOGETHER A STRING OF STRUGGLING OPERATIONS INTO THE NATION'S SECONDLARGEST BROKERAGE FIRM HE SOLD IT TO AMERICAN EXPRESS IN 1981 FOR STOCK VALUED AT 930 MILLION AND JOINED AMERICAN EXPRESS AS PRESIDENT STAYING UNTIL 1985 SHEARSON'S LEHMAN BROTHERS INVESTMENTBANKING AND TRADING DIVISION WOULDN'T BE INCLUDED IN THE SALE THE PEOPLE SAID INSTEAD THE DIVISION WOULD CONTINUE TO OPERATE AS AN AMERICAN EXPRESS UNIT WITH A SMALL NUMBER OF BROKERS WORLDWIDE FOR AMERICAN EXPRESS THE SALE WOULD FINALLY RID THE FINANCIALSERVICES CONGLOMERATE OF AN ALBATROSS THAT HAS HURT EARNINGS SHEARSON HAS BEEN SADDLED WITH BLOATED COSTS INCLUDING HUGE WRITEDOWNS FOR SOURED REAL ESTATE AND LITIGATION STEMMING FROM 1980S MISCUES AMID WALL STREET'S RECORD PROFITS LAST YEAR SHEARSON HAD A 1992 LOSS OF 116 MILLION SHEARSON HAS LOST MONEY IN OTHER YEARS INCLUDING MORE THAN 900 MILLION IN 1990 THE SALE HAS NOT YET BEEN COMPLETED AND THERE IS A SLIM CHANCE THE PLAN COULD FALL THROUGH INDEED A 1990 BID BY MR WEILL TO BUY SHEARSON BACK FROM AMERICAN EXPRESS COLLAPSED AT THE ELEVENTH HOUR BUT THE TRANSACTION COULD BE ANNOUNCED AS EARLY AS TOMORROW THE PEOPLE ADDED A SHEARSON SPOKESMAN DECLINED TO COMMENT SAID A PRIMERICA SPOKESWOMAN WE DON'T RESPOND TO MARKET RUMORS WHAT LED TO THE PRIMERICASHEARSON DISCUSSIONS WAS MR WEILL'S LONG RELATIONSHIP WITH HARVEY GOLUB THE NEWLY NAMED AMERICAN EXPRESS CHAIRMAN MR WEILL HIRED MR GOLUB TO RUN IDS FINANCIAL SERVICES AFTER AMERICAN EXPRESS BOUGHT THE COMPANY IN 1983 BOTH MESSRS WEILL AND GOLUB ARE FROM BROOKLYN MR WEILL IS GODFATHER TO MR GOLUB'S SON THIS CLOSE RELATIONSHIP WAS A CRITICAL ELEMENT IN THE DISCUSSIONS TO SELL SHEARSON PEOPLE FAMILIAR WITH THE TALKS SAY THE MOVE TO ACQUIRE SHEARSON SHOWS THAT MR WEILL HASN'T CHANGED FROM THE DAYS WHEN HE GOBBLED UP AILING BROKERAGE FIRMS IN THE 1970S TURNED THEM AROUND AND BECAME A WALL STREET LEGEND SIMILARLY SINCE TAKING OVER PRIMERICA IN 1988 HE HAS TRANSFORMED THE FINANCIALSERVICES CONGLOMERATE INTO AN EARNINGS MACHINE EVEN AS GIANTS LIKE AMERICAN EXPRESS AND ITT CORP HAVE POSTED HUGE LOSSES IN SIMILAR BUSINESSES BUT FEW PEOPLE EXPECTED MR WEILL TO MAKE ANOTHER MAJOR MOVE SO SOON IT COMES ONLY TWO MONTHS AFTER PRIMERICA ACQUIRED A 27 STAKE IN TRAVELERS CORP FOR 7225 MILLION ALTHOUGH A FIVEYEAR STANDSTILL AGREEMENT BLOCKS PRIMERICA FROM BUYING MORE TRAVELERS SHARES WITHOUT THE CONSENT OF TRAVELERS'S BOARD THE INVESTMENT NEVERTHELESS GIVES MR WEILL GREAT INFLUENCE OVER THE COMPANY AS ITS BIGGEST HOLDER DESPITE THE TRAVELERS INVESTMENT WHICH CONSUMED ABOUT 550 MILLION IN CASH WHEN THE DEAL CLOSED AT YEAR END PRIMERICA'S WAR CHEST HAS SINCE BEEN REPLENISHED THROUGH DIVESTITURES AND EARNINGS LAST YEAR PRIMERICA SOLD ITS REMAINING STAKE IN FINGERHUT COS A MINNEAPOLISBASED CATALOG RETAILER AS WELL AS SOME INSURANCE OPERATIONS ALMOST AS NOTABLE AS MR WEILL'S APPETITE FOR FINANCIAL ACQUISITIONS IS HIS PERSONAL STYLE OF DEALING WITH PEERS AND SUBORDINATES FORGET MANAGEMENT MANUALS MR WEILL HAS NO USE FOR THEM HE HAS NO NEED FOR MEMORANDUMS EITHER THEY'RE ONLY TO PROTECT ONE'S FLANK HE SAYS INSTEAD THE STOCKY MR WEILL FREQUENTLY MANAGES VIA CONFRONTATION HE DOES A LOT OF YELLING AND WITHOUT WARNING HE DEMANDS LOYALTY AND HE HAS THRIVED BY HIRING FORMER ASSOCIATES BOUNCED FROM OTHER COMPANIES HE IS APT TO CUT OUT PERKS RANGING FROM NEWSPAPER SUBSCRIPTIONS TO EMPLOYEE BENEFITS HE SOMETIMES CHALLENGES COLLEAGUES BY SPEWING INACCURATE OPERATING ESTIMATES FOR PRIMERICA UNITS JUST TO SEE WHETHER THEY ARE AWAKE HE'S ALWAYS ON TOP OF YOU HE DRIVES YOU CRAZY SAYS WILLIAM MCCORMICK A FORMER WEILL ASSOCIATE AFTER THE SHEARSON PURCHASE MR WEILL IS EXPECTED TO START SLASHING COSTS AND PARING STAFF PEOPLE FAMILIAR WITH HIS PLANS SAY BUT SHEARSON SHOULD BE AN EASY FIT WITH SMITH BARNEY PARTLY BECAUSE NO TWO FIRMS ARE AS CLOSELY LINKED ON WALL STREET MR WEILL HAS HIRED SO MANY FORMER SHEARSON EXECUTIVES THAT SMITH BARNEYWHICH IS LOCATED IN MIDTOWN MANHATTAN RATHER THAN WALL STREETIS COMMONLY REFERRED TO AS SHEARSON NORTH AMONG THE TOP SMITH BARNEY EXECUTIVES WHO FORMERLY WORKED AT SHEARSON OR LEHMAN BROTHERS ARE VICE CHAIRMEN JEFFREY LANE FORMER SHEARSON PRESIDENT AND LEWIS GLUCKSMAN FORMER LEHMAN CHAIRMAN MR WEILL'S GRAND PLANS AT SNAPPING UP OTHER BROKERAGE FIRMS HAVE FALLEN THROUGH JUST BEFORE BEING ANNOUNCED BESIDES HIS 1990 ATTEMPT TO BUY SHEARSON MR WEILL ALSO MADE AN ABORTED EFFORT TO BUY KIDDER PEABODY & CO FROM GENERAL ELECTRIC CO LAST YEAR SINCE THEN SMITH BARNEY HAS BEEN LOOKING TO EXPAND ITS BROKERAGE OPERATION INTERNALLY ADDING BROKERS PIECEMEAL WITH THE AIM OF BUILDING A STAFF OF 4000 BROKERS WITHIN A FEW YEARS SMITH BARNEY CURRENTLY HAS 2400 BROKERS MR WEILL IS EXPECTED TO GO AFTER SHEARSON'S BLOATED EXPENSES WITH THE SAME ZEAL HE USED TO IMPROVE AMERICAN EXPRESS'S STRUGGLING FIREMAN'S FUND INSURANCE UNIT HE DID THAT BY AGGRESSIVELY CUTTING COSTS DITCHING UNPROFITABLE BUSINESSES AND STOPPING AGENTS FROM SELLING POLICIES TO UNQUALIFIED CUSTOMERS HE ALSO HAD FRUSTRATIONS AFTER LEAVING IN 1985 HAVING REALIZED HE WOULD NEVER GET THE TOP JOB HE FAILED IN A BID TO TAKE OVER BANK OF AMERICA BUT MR WEILL'S FINANCIAL RESULTS ARE HARD TO QUESTION SINCE HE CAME TO PRIMERICA IN 1988 ITS EARNINGS HAVE MORE THAN DOUBLED AND THE STOCK HAS NEARLY TRIPLED EASILY OUTPACING THE STANDARD & POOR'S 500STOCK INDEX YESTERDAY PRIMERICA ROSE 1875 A SHARE TO A RECORD 40 IN BIG BOARD TRADING GETTING SUCH RESULTS ISN'T ALWAYS EASY ON EMPLOYEES BUT CONSIDERING THAT THEY OWN 8 OF THE COMPANY AND ARE OFTEN REWARDED FOR PERFORMANCE THEY SHARE IN THE SUCCESS SO HAS MR WEILL HE OWNS SHARES AND OPTIONS IN PRIMERICA VALUED AT MORE THAN 100 MILLION WHICH HE SAYS REPRESENTS MOST OF HIS NET WORTH WHAT INVESTORS THINK OF MR WEILL IS EVIDENT IN THE RECENT PERFORMANCE OF TRAVELERS STOCK SINCE PRIMERICA MADE ITS 27 INVESTMENT IN LATE SEPTEMBER TRAVELERS'S SHARES HAVE SKYROCKETED 55 THE STOCK CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 27125 UP 375 CENTS HE IS A GREAT CRUSADER FOR THE OWNERS' INTERESTS SAYS JOHN BYRNE CHAIRMAN OF FUND AMERICAN AND MR WEILL'S SUCCESSOR AT FIREMAN'S FUND BUT SOME SAY HIS CRUSADE GOES TOO FAR PRIMERICA IS FIGHTING A NASTY LEGAL BATTLE WITH 1600 RETIRED EMPLOYEES OVER THE COMPANY'S DECISION TO RAISE THEIR HEALTHINSURANCE PREMIUMS IRENE MEIJER AN 80YEAROLD WIDOW FROM GREEN BAY WIS SAW HER MONTHLY PREMIUMS JUMP TENFOLD TO 50 PROMPTING MRS MEIJER TO SWITCH TO A LESSEXPENSIVE PLAN OFFERED THROUGH THE AMERICAN ASSOCIATION OF RETIRED PERSONS I THINK THEY DID AN AWFUL NUMBER ON US SHE SAYS A SPOKESWOMAN FOR MR WEILL SAYS THE INCREASE IS NECESSARY TO KEEP PACE WITH SOARING MEDICAL COSTS SHE ASSERTS RETIRED EMPLOYEES HAD BEEN NOTIFIED THAT THE COMPANY HAD THE RIGHT TO MODIFY OR TERMINATE THEIR HEALTHINSURANCE BENEFITS MR WEILL CAN BE JUST AS HARDNOSED IN HIS BUSINESS RELATIONSHIPS MR MCCORMICK WHO WORKED UNDER HIM AT FIREMAN'S FUND RECALLS HIS BOSS'S RAGE OVER A DECISION MR MCCORMICK MADE TO BUY OUT CORPORATE PARTNERS IN A MONEYLOSING REINSURANCE COMPANY BECAUSE FIREMAN'S FUND MANAGED THE BUSINESS MR MCCORMICK BELIEVED IT SHOULD SWALLOW THE LOSSES MR WEILL REJECTED THE SUGGESTION SAYING THE PARTNERS WHICH INCLUDED SOME OF EUROPE'S BIGGEST INSURANCE COMPANIES WOULD HAVE MADE MONEY IF THE VENTURE HAD SUCCEEDED THEY WEREN'T UNSOPHISTICATED INVESTORS HE SAYS MR WEILL BIT MY HEAD OFF MR MCCORMICK SAYS OVER THE YEARS MR WEILL'S IMPATIENT PUSH FOR PROFIT FREQUENTLY HAS LED TO ANGRY CONFRONTATIONS WITH EMPLOYEES MR LANE THE FORMER SHEARSON PRESIDENT WHO JOINED MR WEILL AT PRIMERICA RECALLS A SHOUTING MATCH AFTER HE SUGGESTED THAT MR WEILL LAUNCH A MONEYMARKET FUND MR WEILL WAS LIVID NOTING THE THIN MARGINS ON MONEY FUNDS YOU MORON MR LANE SAYS MR WEILL SCREAMED AT HIM IN A PRIVATE MEETING YOU DON'T KNOW THE ECONOMICS OF WALL STREET YOU'LL BANKRUPT THE FIRM MR WEILL NOW CONCEDES THAT MR LANE WAS RIGHT REALIZING THAT MONEY FUNDS WERE A GOOD WAY TO ATTRACT NEW CLIENTS DESPITE HIS SHORT FUSE MR WEILL HAS NO SHORTAGE OF LOYAL FOLLOWERS AMONG THEM JAMES JAMIE DIMON PRIMERICA'S 36YEAROLD PRESIDENT WHO AFTER GRADUATING NEAR THE TOP OF HIS CLASS AT HARVARD BUSINESS SCHOOL FOLLOWED MR WEILL FROM AMERICAN EXPRESS TO A SMALL OFFICE WHERE HE HELPED PLOT MR WEILL'S NEXT TAKEOVER THE 1986 ACQUISITION OF COMMERCIAL CREDIT CO A CONSUMER LENDER SOME COMPARE THE CLOSE RELATIONSHIP BETWEEN THE TWO MEN WITH ONE MR WEILL PREVIOUSLY HAD FORGED WITH FORMER SHEARSON CHAIRMAN PETER COHEN WHO LIKE MR DIMON WAS IN HIS 20S WHEN HE BECAME MR WEILL'S CONFIDANT AND NUMBERS CRUNCHER BUT MR WEILL ALSO HAS PLUCKED A NUMBER OF EXECUTIVES FROM PETE DAWKINS THE FORMER WEST POINT FOOTBALL STAR AND ARMY GENERAL TO MR GLUCKSMAN ONE TIME CHAIRMAN OF LEHMAN BROTHERS TO GEORGE BALL FORMER CHAIRMAN OF WHAT IS NOW CALLED PRUDENTIAL SECURITIES WHOSE CAREERS STARTED STRONG BUT LATER FALTERED MR DAWKINS LOST A US SENATE BID IN NEW JERSEY MESSRS GLUCKSMAN AND BALL LEFT THEIR FIRMS AFTER POWER STRUGGLES MR WEILL GETS RESULTS BY CUTTING COSTS AS SHEARSON EMPLOYEES MAY SOON FIND OUT HE TYPICALLY BEGINS HACKING AWAY IMMEDIATELY AFTER TAKING OVER AN AILING COMPANY AT FIREMAN'S FUND WHICH WAS DRAGGING DOWN AMERICAN EXPRESS PROFITS HE SLASHED 2500 JOBS AT COMMERCIAL CREDIT MR WEILL DISMISSED 125 EMPLOYEES OR 10 OF ITS HOME OFFICE THE STRATEGICPLANNING DEPARTMENT WAS PARED TO TWO PEOPLE FROM 12 MR WEILL DELIGHTS IN RECOUNTING HIS HUMBLE UPBRINGING PROMINENT IN HIS OFFICE IS A HUGE PICTURE OF THE YELLOW DUPLEX WHERE HE GREW UP BUT THE WEILL FAMILY WAS FAR FROM POOR THOUGH MR WEILL'S FATHER WAS A POLISH IMMIGRANT HE MADE ENOUGH MONEY AS A DRESSMAKER TO SEND SANDY TO PEEKSKILL MILITARY ACADEMY AND TO CORNELL UNIVERSITY NOTHING IN HIS CAREER WAS HANDED TO HIM MR WEILL SAYS RECALLING HOW IN HIS EARLY DAYS ON WALL STREET IN THE 1950S HE SUPPORTED HIS WIFE JOAN AND THEIR FIRST CHILD MARC ON 150 A MONTH AT COMMERCIAL CREDIT BEFORE HE TOOK OVER THE WORST BRANCH MANAGER GOT A 5000 BONUS AND THE BEST RECEIVED 10000 NOW TOP MANAGERS GET A BONUS EQUAL TO THEIR SALARY AND THE WEAKEST GET NOTHING EXCEPT POSSIBLY THE AX AT A RECENT MEETING OF BIGPRODUCING BROKERS AT PRIMERICA'S SMITH BARNEY UNIT EXECUTIVES WERE REPORTING ON THE BROKERAGE UNIT'S FORTUNES AFTER SMITH BARNEY CHAIRMAN FRANK ZARB PRESENTED RECORD EARNINGS MR WEILL GIBED THAT'S NOT BAD FRANK JUST KEEP GOING AND YOU'LL BE HERE FOR ANOTHER YEAR THOUGH THE REMARK WAS PLAYFUL THOSE WHO KNOW MR WEILL SAY IT CARRIED SOME TRUTH MR ZARB PROBABLY WILL HEAD THE COMBINED COMPANY AN ACQUISITION OF SHEARSON WILL SURELY TEST MR WEILL'S SKILLS AS A MR FIXIT CONSIDERING THE CHALLENGE HE FACES WITH TRAVELERS REALESTATE LOSSES HAVE WEAKENED ITS FINANCIAL STRENGTH HAMMERED ITS CREDIT RATING AND FORCED THE COMPANY'S INVESTMENT BANKERS TO GO ON A DESPERATE SEARCH FOR CAPITAL IN RETURN FOR PRIMERICA'S MONEY HE WON TREMENDOUS INFLUENCE OVER TRAVELERS'S AFFAIRS BUT TRAVELERS PROMISES TO BE DIFFICULT TO MOLD PARTLY BECAUSE IT IS FAR BIGGER THAN ANY OTHER COMPANY HE HAS EVER TRIED TO FIX TRAVELERS IS 2 1/2 TIMES THE SIZE OF PRIMERICA BASED ON ASSETS SHEARSON TOO IS BADLY IN NEED OF SOME HELP AMONG THE BIGGEST PROBLEMS A COMBINATION OF TOO MANY PEOPLE AND TOO MUCH MONEY BEING DOLED OUT TO THOSE ALREADY THERE WHILE SHEARSON'S REVENUE ROSE JUST 5 LAST YEAR ITS COMPENSATION COSTS ESSENTIALLY SALARIES AND BONUSES SURGED 14 MEANTIME THE FIRM HIRED 1000 NEW EMPLOYEES 500 OF THEM BROKERS BRINGING ITS TOTAL EMPLOYMENT TO 32000 SHEARSON EXECUTIVES ALREADY ARE BRACING FOR SOME BITTER MEDICINE FROM MR WEILL THESE COULD INCLUDE SALARY FREEZES AND SLASHING BONUS PAYMENTS IN A BID TO BOOST SHEARSON'S SAGGING EARNINGS IT'S NOT SURPRISING THAT MR WEILL WANTS ONLY SHEARSON'S BROKERAGE OPERATIONS COLLEAGUES SAY HE HAS NEVER FELT COMFORTABLE WITH INVESTMENT BANKERS AND HIS BLUNT NONONSENSE STYLE HAS GONE OVER FAR BETTER WITH BROKERS AT SMITH BARNEY HE HAS FOCUSED ON BOLSTERING THE FIRM'S BROKERAGE EFFORTS IN ATTRACTING WEALTHY INDIVIDUAL INVESTORS RATHER THAN TRYING TO TURN THE FIRM INTO A MAJOR INVESTMENT BANK SNATCHING ONLY SHEARSON'S LOWBROW BROKERAGE OPERATIONS WOULD BE IN KEEPING WITH MR WEILL'S SENSIBILITIES AND MODEST BACKGROUND AFTER GRADUATING FROM CORNELL HE PEDDLED BUSINESS DIRECTORIES HE STARTED AS A RUNNER FOR BEAR STEARNS COS AND LATER BECAME A STOCKBROKER MR WEILL IS EXPECTED TO IMMEDIATELY CLOSE BRANCH OFFICES AND SIGNIFICANTLY SLASH THE NUMBER OF EMPLOYEES IN SHEARSON'S BACKOFFICE OPERATIONS THAT PROCESS TRADES SHEARSON HAS BEEN CUTTING ITS BACKOFFICE PERSONNEL THE PAST TWO YEARS THE FIRM EVEN TRIED TO MERGE ITS BACK OFFICE WITH RIVAL PRUDENTIAL SECURITIES INC IN 1990 BUT THAT DEAL FELL THROUGH AMONG THE STICKING POINTS IN ACQUIRING SHEARSON'S BROKERAGE OPERATIONS WOULD BE THE FIRM'S LITIGATION COSTS MORE THAN MOST BROKERAGE FIRMS SHEARSON HAS BEEN SOCKED WITH BIG LEGAL CLAIMS BY INVESTORS WHO SAY THEY WERE MISTREATED THOUGH THE FIRM HAS MADE STRIDES IN CLEANING UP ITS BACKLOG OF INVESTOR CASES IN 1992'S FOURTH QUARTER ALONE SHEARSON TOOK RESERVES OF 90 MILLION BEFORE TAXES FOR ADDITIONAL LEGAL PROVISIONS PEOPLE FAMILIAR WITH THE MATTER SAY MR WEILL IS APPARENTLY SEEKING TO LEAVE THE LEGAL OBLIGATIONS WITH AMERICAN EXPRESS 9303090080 930309 CENTEL IS DROPPED FROM INDEX NEW YORK CENTEL CORP IS BEING DROPPED FROM THE TELEPHONE SYSTEMS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY CENTEL HAS MERGED WITH SPRINT CORP 9303090079 930309 CLINTON REINSTATES '31 ACT SETTING CONSTRUCTION WAGES WASHINGTON AP PRESIDENT CLINTON TODAY REINSTATED THE DAVISBACON ACT OF 1931 A FEDERAL WAGE LAW THAT REQUIRES GOVERNMENT CONTRACTORS TO PAY THEIR WORKERS THE PREVAILING LOCAL WAGE PRESIDENT BUSH SUSPENDED THE ACT OCT 14 SAYING HIS ACTION WOULD HELP SPEED THE REBUILDING OF AREAS HIT BY HURRICANE ANDREW WHICH STRUCK FLORIDA AND LOUISIANA AND HURRICANE INIKI WHICH HIT HAWAII THE DAVISBACON ACT REQUIRES THAT WORKERS ON FEDERAL PROJECTS THAT COST MORE THAN 2000 BE PAID WAGES SIMILAR TO WORKERS ON NONFEDERAL PROJECTS IN THE SAME AREA IT APPLIES TO BOTH UNION AND NONUNION JOBS THE LAW INCLUDES A CLAUSE ALLOWING PRESIDENTS TO SUSPEND IT IN CASES OF NATIONAL EMERGENCY MR CLINTON'S PROCLAMATION GOES INTO EFFECT MARCH 23 FOR BOTH FEDERAL CONSTRUCTION AND FEDERALLY ASSISTED CONSTRUCTION IT ALSO APPLIES TO ANY PROJECT IN WHICH BIDS ARE OPENED OR NEGOTIATIONS CONCLUDED AFTER THAT DATE 9303090078 930309 INTERNATIONAL BRIEF THOMAS COOK GROUP LTD TRAVEL CONCERN MAKES OFFER FOR 125 OF OWNERS ABROAD THOMAS COOK GROUP LTD THE UKBASED TRAVEL AGENT OWNED BY WESTDEUTSCHE LANDESBANK GIROZENTRALE OFFERED TO BUY 125 OF THE SHARES OF BRITISH TOUROPERATOR OWNERS ABROAD GROUP PLC FOR 150 PENCE 217 APIECE IN A DEAL VALUED AT 29 MILLION 42 MILLION THOMAS COOK SAID ITS SHAREPURCHASE PLAN WOULD REPLACE A PREVIOUS AGREEMENT BETWEEN OWNERS ABROAD AND ITSELF TO SWAP SHARES AND BONDS THE TWO COMPANIES ALONG WITH THOMAS COOK'S AFFILIATED GERMAN TOUR OPERATOR LTU GROUP RECONFIRMED THEIR INTENTION TO PURSUE PLANS FOR A STRATEGIC ALLIANCE IF OWNERS ABROAD SHAREHOLDERS REJECT A HOSTILE 269 MILLION TAKEOVER BID BY BRITAIN'S AIRTOURS PLC 9303090077 930309 WHAT'S NEWS BUSINESS AND FINANCE SANFORD WEILL'S PRIMERICA IS IN DISCUSSIONS TO BUY THE BROKERAGE OPERATIONS OF AMERICAN EXPRESS'S SHEARSON LEHMAN BROTHERS UNIT FOR ABOUT 1 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE COMBINATION WOULD CREATE A BROKERAGEINDUSTRY POWERHOUSE IN SOME MEASURES ECLIPSING MERRILL LYNCH AS THE BIGGEST SECURITIES COMPANY IN THE US STOCKS SURGED ON DECLINING INTEREST RATES AND IMPROVING ECONOMIC PROSPECTS THE MAJOR INDEXES CLIMBED 2 WITH THE DOW JONES INDUSTRIALS RISING 6484 POINTS TO A RECORD 346942 AND THE S&P 500 GAINING 860 TO A RECORD 45471 BOND PRICES ROSE AND THE DOLLAR FELL CLINTON AND HIS ECONOMIC ADVISERS WOULD ACCEPT ACROSSTHEBOARD SPENDING CUTS IN EXISTING DOMESTIC PROGRAMS IF NECESSARY TO PROTECT HIS INVESTMENTSPENDING AGENDA IN CONGRESS THE PRESIDENT'S PROGRAM TO EASE THE CREDIT CRUNCH WHICH WILL BE UNVEILED TOMORROW CONTAINS A PACKAGE OF MEASURES DESIGNED TO BRING NEW LIFE TO DEPRESSED REALESTATE MARKETS US STEELMAKERS ARE PLANNING JULY PRICE INCREASES AVERAGING 5 MARKING THE INDUSTRY'S THIRD EFFORT AT HIGHER PRICES IN AS MANY QUARTERS THE MOVE IS THE LATEST EFFORT BY COMPANIES IN A VARIETY OF INDUSTRIES TO FIRM PRICES HJ HEINZ IS EXPECTED TO REPORT FISCAL THIRDQUARTER RESULTS THAT COULD CALL INTO QUESTION THE FOOD COMPANY'S ABILITY TO MEET ITS FREQUENTLY STATED YEAREND FORECAST OF 260 A SHARE UNIONS WON A CRITICAL VICTORY IN THE SUPREME COURT OVER NONUNION CONTRACTORS IN THEIR STRUGGLE FOR CONTROL OVER PUBLIC CONSTRUCTION PROJECTS GOLDMAN SACHS SUSPENDED THE HEAD OF THE FIXEDINCOME PORTFOLIO OF ITS ASSET MANAGEMENT UNIT AFTER FINDING ALLEGED BOOKKEEPING IRREGULARITIES SAID PEOPLE CLOSE TO THE FIRM TAXING INSURANCE BENEFITS AS A WAY TO PAY FOR OVERHAULING THE NATION'S HEALTHCARE SYSTEM HAS BEEN RULED OUT BY THE WHITE HOUSE HILLARY RODHAM CLINTON SAID THESE KINDS OF TAXES HAVE BEEN OPPOSED BY ORGANIZED LABOR BLOCKBUSTER ENTERTAINMENT PLANS TO BUY A CONTROLLING STAKE IN SPELLING ENTERTAINMENT IN A 140 MILLION STOCK SWAP SIGNALING ITS DEGREE OF INTEREST IN PRODUCTION AND PROGRAMMING DU PONT INTENDS TO PHASE OUT US PRODUCTION OF CHLOROFLUOROCARBONS WHICH DESTROY THE OZONE LAYER BY THE END OF 1994 A YEAR AHEAD OF SCHEDULE JAPANESE BUSINESS CONFIDENCE PLUNGED TO ITS LOWEST LEVEL IN NEARLY TWO DECADES THE BANK OF JAPAN SAID BURLINGTON NORTHERN REACHED A TENTATIVE PACT TO REDUCE LABOR COSTS ON ITS RAIL SYSTEM'S NORTHERN THIRD POTENTIALLY CATCHING UP TO RIVALS THAT OPERATE FREIGHT TRAINS WITH SMALLER CREWS US TAX FUGITIVE MARC RICH RELINQUISHED HIS MAJORITY STAKE IN HIS SWISS COMMODITIESTRADING COMPANY FEDERATED DEPARTMENT STORES REPORTED BETTERTHANEXPECTED FISCAL FOURTHQUARTER EARNINGS AND SAID IT WILL PREPAY 355 MILLION OF DEBT AND BOOST CAPITAL SPENDING SUBSTANTIALLY TOKYO STOCKS SOARED 52 AS THE NIKKEI INDEX CLIMBED 86877 TO 1768647 THE GAIN WAS SEEN AS A SIGN OF THE MARKET'S VOLATILITY GLAXO HOLDINGS STOCK SKIDDED NEARLY 5 FOLLOWING A REPORT OF ITS ONGOING DISPUTE WITH THE FDA OVER ADVERTISING FOR ITS ULCER DRUG ZANTAC BONDS LEHMAN BROTHERS TREASURY INDEX 509988 UP 979 COMMODITIES OIL 2071 A BARREL OFF 22 CENTS DOW JONES FUTURES INDEX 12815 UP 071 SPOT INDEX 12354 OFF 054 DOLLAR 11675 YEN OFF 088 16635 MARKS OFF 00049 9303090076 930309 TECHNOLOGY BRIEF IMMUNOMEDICS INC ANTIBODY TARGETS CANCER SITE SUCCESSFULLY IN CLINICAL TRIAL IMMUNOMEDICS INC SAID RESULTS OF A CLINICAL TRIAL SHOWED ITS SECONDGENERATION MONOCLONAL ANTIBODY WHICH TARGETS A CANCER MARKER FOUND IN TUMORS SUCCESSFULLY TARGETED 89 OF DISEASE SITES CONFIRMED BY CAT SCANS IN PATIENTS THE RESULTS WERE REPORTED IN HE CURRENT ISSUE OF THE PUBLICATION CANCER ACCORDING TO THE MORRIS PLAINS NJ BIOPHARMACEUTICAL COMPANY THE ANTIBODY ALSO SHOWED A TENFOLD GREATER AFFINITY TO BIND TO THE CANCER MARKER CALLED CARCINOEMBRYONIC ANTIGEN OR CEA WHEN COMPARED TO IMMUNOMEDICS' CEASPECIFIC IMAGING AGENT CALLED IMMURAIDCEA THE LATTER IS CURRENTLY UNDER REVIEW BY THE FOOD AND DRUG ADMINISTRATION FOR THE IMAGING OF COLORECTAL CANCER 9303090075 930309 MAJOR AIRLINES EXTEND REDUCED FARE PROMOTIONS A WALL STREET JOURNAL ROUNDUP CALL IT THE FARE SALE THAT WON'T DIE MAJOR AIRLINES INCLUDING AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES EXTENDED UNTIL TOMORROW SALES ON LEISURE FARES THAT CUT TICKET PRICES BY AS MUCH AS 40 NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC KICKED OFF ITS SALE ON MARCH 1 OTHER CARRIERS THEN MATCHED IT THE DISCOUNTS APPLIED TO TICKETS PURCHASED 14 DAYS IN ADVANCE FOR TRIPS COMPLETED BY JUNE 30 A SATURDAY NIGHT OR FRIDAY NIGHT STAY WAS REQUIRED DEPENDING ON THE AIRLINE NORTHWEST'S SALE WAS TO EXPIRE ON MARCH 3 BUT USAIR A UNIT OF USAIR GROUP INC EXTENDED ITS PROMOTION TO MARCH 8 BEFORE THAT DEADLINE COULD EXPIRE HOWEVER AMERICAN AIRLINES EXTENDED ITS PURCHASE DATE TO TOMORROW AMERICAN SAID IT DID SO BECAUSE IT ADVERTISED THE PROMOTION ON FRIDAY AND WANTED TO GIVE PASSENGERS EXTRA TIME TO BUY TICKETS THE AIRLINE ALSO SAID THAT AMERICA WEST AIRLINES HAD ALREADY EXTENDED THE SALE IN SOME MARKETS MOST AIRLINES HAVE SAID THEY WANT TO AVOID THESE TYPES OF PROTRACTED PROMOTIONS WHICH CONDITION CONSUMERS TO ONLY BUY TICKETS WHEN DISCOUNTS ARE AVAILABLE BUT CARRIERS' DESIRES FOR QUICK CASH OFTEN SUPERSEDE THE GOAL OF LONGTERM PRICE STABILITY 9303090074 930309 FOREIGN EXCHANGE WITH NOTHING TO PUSH IT DOLLAR SLIPS FROM GAINS POSTED IN FRIDAY'S RALLY BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK LACKING NEWS TO FUEL ANOTHER LEG OF LAST WEEK'S RALLY THE DOLLAR STALLED YESTERDAY SLIPPING BACK SLIGHTLY AS INVESTORS TOOK PROFITS AND LOOKED FOR SIGNS OF DIRECTION LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16635 MARKS DOWN FROM 16684 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11675 YEN DOWN FROM 11763 YEN THE BRITISH POUND WHICH FELL TO PROFIT TAKING AGAINST THE DOLLAR AND THE MARK WAS TRADING AT 14425 DOLLARS DOWN FROM 14470 DOLLARS ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11648 YEN AND AT 16608 MARKS PEOPLE WERE DISAPPOINTED SAID JAMES MCGROARTY SENIOR VICE PRESIDENT AT GREENWICH CAPITAL MARKETS IN CONNECTICUT THE UPSIDE MOMENTUM HAS SLOWED DOWN CONSIDERABLY FROM FRIDAY THE DOLLAR SURGED MORE THAN THREE PFENNIGS FRIDAY AFTER UNEXPECTEDLY STRONG US EMPLOYMENT DATA ACCELERATED A RALLY SET OFF BY AN UNEXPECTED CUT IN GERMAN INTEREST RATES BY YESTERDAY DEALERS SAID PLAYERS WERE LOOKING FOR NEW REASONS TO BUY DOLLARS BUT WEREN'T FINDING THEM JACK STAPLETON CHIEF CORPORATE DEALER AT STANDARD CHARTERED BANK PLC IN NEW YORK SAID THE MARKET WAS STILL LOOKING FOR THAT RECONFIRMATION OF REASONS TO BUY BUT WITH NO US ECONOMIC NEWS AND NO FURTHER ACTION ON GERMAN INTEREST RATES PLAYERS SAW LITTLE REASON TO PUSH THE DOLLAR FROM NARROW RANGES DEALERS SAID THEY ADDED THAT THE DOLLAR'S MALAISE YESTERDAY HEIGHTENED CONCERNS THAT FRIDAY'S RALLY MAY HAVE TAKEN THE DOLLAR TOO FAR TOO FAST I THINK THERE WAS SOME BLOOD IN THE MARKET LAST FRIDAY SAID DAVE GLOWACKI SENIOR DEALER AT NATIONAL BANK OF DETROIT HE SAID THE DOLLAR'S SURGE TOOK MANY INVESTORS BY SURPRISE AND PLAYERS STEPPED BACK FROM THE MARKET YESTERDAY THERE REALLY DOESN'T SEEM TO BE A CLEARCUT DIRECTION FOR THE DOLLAR HE SAID WITH THE RALLY APPARENTLY STALLED ABOVE 16700 MARKS DEALERS SAID INVESTORS ARE BEGINNING TO DOUBT WHETHER IT IS THE BEGINNING OF A MAJOR TREND UPWARD FOR THE DOLLAR AS MANY HAD EXPECTED FRIDAY AGAINST THE MARK SAID EARL JOHNSON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO THE DOLLAR FACES LIMITED UPSIDE RIGHT NOW BUT I DON'T SEE ANY REASON TO SELL IT OFF PLAYERS WEREN'T SO SANGUINE ABOUT THE DOLLAR'S OUTLOOK AGAINST THE YEN HOWEVER YESTERDAY THE JAPANESE CURRENCY CLIMBED AS TECHNICAL FACTORS COMBINED WITH THE STEADY FLOW OF ASSETS BACK INTO YEN AHEAD OF THE END OF JAPAN'S FISCAL YEAR ON MARCH 31 DEALERS SAID THE JAPANESE CURRENCY ALSO CLIMBED AGAINST THE MARK PROBING TECHNICAL RESISTANCE AROUND 7000 YEN BEFORE FALLING BACK LATE IN NEW YORK THE MARK WAS QUOTED AT 7022 YEN DOWN FROM 7048 YEN FRIDAY SETBACK FOR MAJOR THE BRITISH POUND MEANWHILE SLIPPED AGAINST THE MARK YESTERDAY AS PRIME MINISTER JOHN MAJOR FACED ANOTHER SETBACK IN PARLIAMENT SETTING OFF A ROUND OF PROFITTAKING AFTER LAST WEEK'S RISE DEALERS SAID LATE IN NEW YORK THE POUND WAS QUOTED AT 23996 MARKS OFF FROM 24143 MARKS FRIDAY IN PARLIAMENT YESTERDAY REBELS WITHIN MAJOR'S CONSERVATIVE PARTY JOINED OPPOSITION PARTIES TO FURTHER DELAY BRITAIN'S RATIFICATION OF THE MAASTRICHT TREATY ON EUROPEAN UNITY THE MOVE WAS SEEN AS AN EMBARRASSMENT FOR MAJOR WHO TWO DAYS EARLIER HAD APPEALED TO CONSERVATIVE LAWMAKERS FOR THEIR SUPPORT DEALERS DOWNPLAYED THE SIGNIFICANCE OF THE POUND'S SLIDE YESTERDAY HOWEVER NOTING IT SEEMED TO RESULT AS MUCH FROM TECHNICAL FACTORS AS FROM MR MAJOR'S TRAVAILS PLAYERS HAD SET THE TOP OF STERLING'S TRADING RANGE AT 24200 MARKS AND TOOK PROFITS YESTERDAY AS THOUND'S ADVANCES SLOWED DEALERS SAID THE MARKET WAS LOOKING FOR AN EXCUSE SAID MR MCGROARTY THE MARKET'S BEEN VERY DISCIPLINED WITH THESE TRADINGRANGE IDEAS AS FOR THE DOLLAR DEALERS SAID THEY SEE LITTLE NEWS THIS WEEK LIKELY TO STIR THE CURRENCY FROM ITS LETHARGY THE MARKET MIGHT JUST BECOME VERY RANGEBOUND ALL WEEK SAID MR MCGROARTY 9303090073 930309 SUNBEAMOSTER PARTNERS SEEK TO LEAVE KAZARIAN TWO PARTNERS OF OUSTED SUNBEAMOSTER CO EXECUTIVE PAUL KAZARIAN HAVE REQUESTED THAT THEIR PARTNERSHIP WITH HIM BE DISSOLVED CITING DIFFERENCES OVER MANAGEMENT AND FINANCIAL ARRANGEMENTS MICHAEL G LEDERMAN GENERAL COUNSEL AND A DIRECTOR OF SUNBEAM AND ROBERT J SETRAKIAN SUNBEAM'S CHIEF FINANCIAL OFFICER FILED A MOTION IN SUPERIOR COURT IN RHODE ISLAND ASKING THAT JAPONICA PARTNERS L P BE DISSOLVED AND THAT ITS INTERESTS BE DIVIDED AMONG THE THREE GENERAL PARTNERS MESSRS LEDERMAN AND SETRAKIAN WERE AMONG A GROUP OF SUNBEAM EXECUTIVES WHO UNHAPPY WITH MR KAZARIAN'S MANAGEMENT STYLE LED A REVOLT THAT RESULTED IN HIS DEPARTURE AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF SUNBEAM EARLIER THIS YEAR MR KAZARIAN CALLED THE REQUEST TO DISSOLVE JAPONICA UNFORTUNATE AND IRRESPONSIBLE JAPONICA HAS AN INTEREST IN SUNBEAMOSTER EQUITIES LP WHICH OWNS ABOUT 76 OF SUNBEAMOSTER CO WHOSE STOCK IS PUBLICLY TRADED THE MOTION TO DISSOLVE JAPONICA IS AN AMENDMENT TO A SUIT FILED LAST MONTH BY MESSRS LEDERMAN AND SETRAKIAN SEEKING TWOTHIRDS OF JAPONICA THE COURT ALSO ISSUED A TEMPORARY RESTRAINING ORDER REQUIRING MR KAZARIAN TO GIVE 48HOUR NOTICE TO MESSRS LEDERMAN AND SETRAKIAN BEFORE AGREEING TO ANY SIGNIFICANT FINANCIAL TRANSACTION THE ORDER WOULD ALLOW THE TWO PARTNERS TIME TO TRY TO STOP A DEAL IF THEY WISH 9303090072 930309 BUSINESS BRIEF ADVANCED TISSUE SCIENCES INC RESEARCH PACT WITH KIRIN IS WORTH UP TO 29 MILLION ADVANCED TISSUE SCIENCES INC LA JOLLA CALIF SAID IT SIGNED A RESEARCH PACT WITH KIRIN BREWERY CO THAT WILL BRING ADVANCED TISSUE AS MUCH AS 29 MILLION ADVANCED TISSUE WHICH SPECIALIZES IN TECHNIQUES FOR GRAFTING LIVING SKIN ONTO BURN VICTIMS SAID THE AGREEMENT WITH KIRIN CONCERNS RESEARCH INTO STEM CELL PROLIFERATION FACTOR A BIOLOGICAL ELEMENT THAT APPEARS TO ENCOURAGE THE GROWTH OF CERTAIN CELLS ARTHUR J BENVENUTO CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF ADVANCED TISSUE SAID THE COMPANY EXPECTS TO RECEIVE ABOUT 4 MILLION THIS YEAR FROM JAPAN'S KIRIN BREWERY UNDER THIS ARRANGEMENT THE REMAINDER OF THE 29 MILLION IS TO BE PAID AS AND IF CERTAIN RESEARCH MILESTONES ARE MET HE SAID THE COMPANY MAY RECEIVE AN ADDITIONAL 10 MILLION IF KIRIN DECIDES TO LICENSE CERTAIN OTHER TECHNOLOGIES FROM IT ADVANCED TISSUE SAID IT RECENTLY OBTAINED WORLDWIDE RIGHTS TO STEM CELL PROLIFERATION FACTOR FROM THE UNIVERSITY OF FLORIDA RESEARCH FOUNDATION INC 9303090071 930309 BUSINESS BRIEF GATEWAY 2000 SALES TOPPED 1 BILLION AS EARNINGS ROSE IN 1992 GATEWAY 2000 THE FASTGROWING MAILORDER SUPPLIER OF PERSONAL COMPUTERS SAID IT TOPPED 1 BILLION IN SALES AND POSTED INCREASING PROFITS IN 1992 THE CLOSELY HELD COMPANY WHICH IS BASED IN NORTH SIOUX CITY SD SAID ITS PRETAX NET FOR THE YEAR INCREASED MORE THAN 77 TO NEARLY 106 MILLION FROM 597 MILLION A YEAR EARLIER SALES GREW 76 TO 11 BILLION FROM 6268 MILLION IN 1991 GATEWAY SAID IT SHIPPED 437000 SYSTEMS IN 1992 UP ALMOST 75 FROM 1991 IN THE FOURTH QUARTER GATEWAY SAID IT SHIPPED ABOUT 140000 UNITS THAT GENERATED ABOUT 3536 MILLION IN REVENUE A 71 GAIN FROM THE 2065 MILLION REPORTED A YEAR EARLIER GATEWAY ALSO SAID IT INCREASED ITS WORK FORCE NEARLY 43 IN 1992 TO 1847 EMPLOYES AND HAS SINCE INCREASED EMPLOYMENT TO MORE THAN 2000 WORKERS 9303090070 930309 BUSINESS BRIEF ZALE CORP COOWNER TO PAY 70 MILLION FOR RELEASE FROM CLAIMS ZALE CORP DALLAS SAID SWAROVSKI INTERNATIONAL HOLDING AG AGREED TO PAY 70 MILLION TO OBTAIN A RELEASE FROM ANY CLAIMS IN ZALE'S BANKRUPTCY PROCEEDINGS THE SWISS HOLDING COMPANY WHICH IS A COOWNER OF ZALE ALONG WITH PEOPLES JEWELLERS LTD OF TORONTO WOULD THUS BE RELEASED FROM 375 MILLION IN LOAN GUARANTEES IT MADE ON ZALE'S BEHALF ALONG WITH ANY OTHER CLAIMS THAT COULD BE ASSERTED AGAINST IT IN CONNECTION WITH ZALE'S REORGANIZATION AN ATTORNEY FOR ZALE SAID TERMS OF THE AGREEMENT HAVEN'T BEEN FINALIZED THE LAWYER SAID ZALE A JEWELRY RETAILER HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCY COURT PROTECTION SINCE JANUARY 1992 THE COMPANY AND ITS CREDITORS HAVE AGREED TO A REORGANIZATION PLAN TO REPAY ITS 16 BILLION IN DEBT THE PLAN STILL MUST BE APPROVED BY THE COURT SEPARATELY THE COMPANY SAID THREE LENDERS HAVE SUBMITTED PROPOSALS TO PROVIDE ZALE'S EXIT FINANCING DETAILS OF THE PROPOSALS WEREN'T DISCLOSED 9303090069 930309 MARKETING & MEDIA BLOCKBUSTER TO BUY CONTROLLING STAKE IN SPELLING IN SWAP BY LAURIE M GROSSMAN AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP SAID IT WILL BUY A CONTROLLING STAKE IN SPELLING ENTERTAINMENT GROUP INC IN A STOCK SWAP VALUED AT 140 MILLION THE MOVE SIGNALS FOR THE FIRST TIME HOW DEEPLY BLOCKBUSTER INTENDS TO GET INTO THE PRODUCTION AND PROGRAMMING BUSINESS BLOCKBUSTER ALSO DISCLOSED THAT IT HAS BEEN CONSIDERING LAUNCHING ITS OWN CABLE NETWORK IN THIS COUNTRY OR OVERSEAS UNDER TERMS OF THE AGREEMENT BLOCKBUSTER WOULD ISSUE 76 MILLION COMMON SHARES TO ACQUIRE A 482 STAKE IN SPELLING FROM AMERICAN FINANCIAL CORP IN CINCINNATI AMERICAN FINANCIAL WHICH IS CLOSELY HELD BY INVESTOR CARL H LINDNER WOULD ACQUIRE A 4 STAKE IN BLOCKBUSTER BLOCKBUSTER CALLED THE INVESTMENT A MAJOR OPPORTUNITY FOR INTERNATIONAL PROGRAMMING THAT WILL GIVE IT ACCESS TO SPELLING'S LIBRARY OF 600 FEATURE FILMS AND 55 SYNDICATED TELEVISION SHOWS THAT INCLUDE SUCH TITLES AS LOVE BOAT DALLAS AND TWIN PEAKS MOREOVER BLOCKBUSTER SAID IT PLANS TO HAVE SPELLING CREATE PROGRAMS FOR SALE IN ITS 3127 VIDEO STORES ITS STAKE IN SPELLING MAY ALSO ALLOW IT TO TAP THE TELEVISION AND FILM PRODUCER AND DISTRIBUTOR FOR PROGRAMMING FOR A CABLE NETWORK IT MAY LAUNCH IN THIS COUNTRY OR OVERSEAS ACCORDING TO RONALD CASTELL BLOCKBUSTER'S SENIOR VICE PRESIDENT FOR PROGRAMMING AND COMMUNICATIONS BLOCKBUSTER MAY ALSO HELP SPELLING WITH ITS LAUNCH THIS MONTH OF A CABLE NETWORK IN LATIN AMERICA ACCORDING TO RONALD LIGHTSTONE SPELLING'S CHIEF OPERATING OFFICER THIS MAY BE THE FIRST MODERN STUDIO SAYS ROBERT ALEXANDER PRESIDENT OF ALEXANDER & ASSOCIATES INC AN INDUSTRY ANALYST IN NEW YORK INSTEAD OF MAKING PRODUCTIONS FOR THE BIG SCREENS THEY'LL BE CONCENTRATING ON PRODUCTION FOR THE ELECTRONIC SCREEN AT HOME THE COMBINATION COULD ALSO STRENGTHEN BLOCKBUSTER'S HAND IN THE ENTERTAINMENT BUSINESS IN THE FUTURE IF IT HOLDS RIGHTS TO PROGRAMS THAT CAN PLAY ON CABLE TV OR VIDEOONDEMAND SERVICES SAID BRUCE APAR EDITOR OF VIDEO BUSINESS MAGAZINE THE TWO COMPANIES CAN NOW MAKE PROGRAMS FOR THE MASS MARKET THAT ARE LESS EXPENSIVE TO PRODUCE WITH QUICKER TURNAROUND TIME HE SAID ONCE ADMIRED BY WALL STREET SPELLING ENTERTAINMENT WHICH PRODUCED DYNASTY AND HAS DOMESTIC TELEVISION RIGHTS TO SUCH MOVIES AS BASIC INSTINCT AND TERMINATOR 2 HAS BEEN BATTED BACK AND FORTH BETWEEN COMPANIES CONTROLLED BY MR LINDNER SINCE 1989 AARON SPELLING FOUNDER AND ONETIME CHAIRMAN OF THE COMPANY SOLD THE 32 STAKE HE ONCE HELD IN SPELLING ENTERTAINMENT BUT CONTINUES AS A BOARD MEMBER ANALYSTS ARE LINKING THE SPELLINGBLOCKBUSTER TRANSACTION TO MR LINDNER'S RECENT DECISION TO STEP DOWN AS CHAIRMAN OF ANOTHER MEDIA COMPANY HE CONTROLS GREAT AMERICAN COMMUNICATIONS CO WHILE MR LINDNER'S AMERICAN FINANCIAL CORP STILL OWNS ABOUT 40 OF GREAT AMERICAN HE IS NO LONGER INVOLVED IN MANAGEMENT PHELPS B HOYT AN ANALYST WITH DUFF & PHELPS SAID BOTH MOVES MAY INDICATE MR LINDNER WANTS TO GET OUT OF BROADCAST MEDIA AND INTO ANOTHER SEGMENT OF THE ENTERTAINMENT INDUSTRY IT'S A NEW AREA FOR HIM IT MIGHT BE THAT HE'S GOING TO CHANGE MEDIA AND SWITCH OVER TO MORE CONSUMER PRODUCTS MR HOYT SAID BLOCKBUSTER IS A REAL HOT PROPERTY SPELLING HAS BEEN PERFORMING WELL LATELY LARGELY BECAUSE OF THE SUCCESS OF ITS BEVERLY HILLS 90210 SERIES IT MAY BE THAT HE'S GETTING OUT WHILE IT'S ON A GOOD STREAK MR HOYT SAID ANALYSTS BELIEVE MR LINDNER'S BLOCKBUSTER POSITION GIVES HIM MORE LIQUIDITY THAN HIS LARGER POSITION IN SPELLING WHICH WOULD BE DIFFICULT TO SELL THEY EXPECT HIM TO BE A PASSIVE INVESTOR IN BLOCKBUSTER SANDRA W HEIMANN A SPOKESMAN FOR MR LINDNER SAYS HE AGREED TO THE SWAP BECAUSE HE SEES SYNERGIES BETWEEN BLOCKBUSTER AND SPELLING SHE SAID THE GREAT AMERICAN AND SPELLING MOVES DO NOT SIGNAL THAT MR LINDNER IS LEAVING THE BROADCAST INDUSTRY AT 73 YEARS OLD MR LINDNER IS CHAIRMAN OF FOUR COMPANIES PENN CENTRAL CORP CLOSELY HELD AMERICAN FINANCIAL CORP AMERICAN FINANCIAL ENTERPRISES AND CHIQUITA BRANDS CO SHE SAID A FRIEND BROUGHT MR LINDNER AND BLOCKBUSTER TOGETHER THE MOTIVATING FACTOR WAS TO BE ABLE TO PARTICIPATE IN BLOCKBUSTER THEIR STOCK HAS ANNUALLY GROWN 70 IN THE LAST TWO OR THREE YEARS SHE SAID A MONTH AGO BLOCKBUSTER COMPLETED THE PURCHASE FOR 25 MILLION OF A STAKE IN REPUBLIC PICTURES CORP AN INDEPENDENT FILM DISTRIBUTOR AND PRODUCER THAT DISTRIBUTES TO THE TELEVISION HOME VIDEO AND THEATRICAL MARKETS ITS LIBRARY INCLUDES SUCH CLASSIC FILMS AS HIGH NOON THE QUIET MAN AND BELLS OF ST MARY'S 9303090068 930309 DIVIDEND NEWS ANGELES CORP ANGELES CORP SAID IT HAS SUSPENDED THE SEMIANNUAL DISTRIBUTION ON ITS ANGELES CORP UNIT SECURITY EACH UNIT CONSISTS OF ONEHALF SHARE OF ANGELES COMMON AND ONEFIFTIETH OF A SUBORDINATED DEBENTURE MATURING IN 2005 ANGELES SAID IT CAN'T PREDICT WHEN DISTRIBUTIONS WILL RESUME THE LOS ANGELES REAL ESTATE INVESTMENT CONCERN SAID IN FEBRUARY IT FACES LIQUIDITY PROBLEMS THEN IT SUSPENDED THE MONTHLY DIVIDEND FOR ANGELES MORTGAGE INVESTMENT TRUST AN OFFSHOOT OF THE PARENT 9303090067 930309 BUSINESS BRIEF BRITE VOICE SYSTEMS INC MERGER VIA STOCK SWAP SET WITH PERCEPTION TECHNOLOGY BRITE VOICE SYSTEMS INC WICHITA KAN SAID IT AGREED TO MERGE WITH PERCEPTION TECHNOLOGY CORP OF CANTON MASS IN A STOCK SWAP VALUED AT 159 MILLION UNDER TERMS OF THE AGREEMENT BRITE VOICE WILL SWAP 33 MILLION COMMON SHARES FOR PERCEPTION TECHNOLOGY'S STOCK OUTSTANDING ON A 1FOR1 BASIS BRITE VOICE THE SURVIVING ENTITY CURRENTLY HAS 41 MILLION COMMON SHARES OUTSTANDING THE TRANSACTION IS SUBJECT TO APPROVAL BY DIRECTORS AND SHAREHOLDERS OF BOTH COMPANIES AND FILING OF REQUIRED DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION IF APPROVED THE MERGER IS EXPECTED TO BE COMPLETED IN LATE JUNE BOTH COMPANIES DESIGN AND MARKET VOICEPROCESSING COMMUNICATIONS SYSTEMS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BRITE VOICE'S STOCK CLOSED AT 450 DOWN 25 CENTS AND PERCEPTION TECHNOLOGY'S STOCK CLOSED AT 350 UP 75 CENTS 9303090066 930309 BUSINESS BRIEF TRIDENT NGL INC OCCIDENTAL'S STAKE IN FIRM TO BE PURCHASED BY GROUP TRIDENT NGL INC SAID AN INVESTOR GROUP WILL PURCHASE OCCIDENTAL PETROLEUM CORP'S 45 INTEREST IN TRIDENT FOR 1215 MILLION HICKS MUSE & CO A CLOSELY HELD DALLAS INVESTMENT GROUP THAT SPECIALIZES IN LEVERAGED ACQUISITIONS IS DOUBLING ITS STAKE IN TRIDENT TO ABOUT 60 HICKS MUSE WILL PAY FOR THE INVESTMENT BY PRIVATELY PLACING 30 MILLION OF NEW EQUITY OR ABOUT 22 MILLION NEW SHARES AND OFFERING PUBLICLY 105 MILLION OF NEW TRIDENT SUBORDINATED NOTES TRIDENT A NATURAL GAS LIQUIDS PRODUCER BASED IN THE WOODLANDS TEXAS WAS FORMED IN 1991 BY HICKS MUSE AND OCCIDENTAL TO ACQUIRE ALL OF OCCIDENTAL'S DOMESTIC NATURAL GAS LIQUIDS BUSINESS IN LOS ANGELES A SPOKESMAN FOR OCCIDENTAL SAID THE COMPANY EXPECTS TO REPORT A ONETIME GAIN FROM THE PLANNED SALE THE SPOKESMAN DECLINED TO DISCLOSE THE AMOUNT OF THE GAIN HE SAID OCCIDENTAL DETERMINED THAT ITS INVESTMENT IN TRIDENT COULD BETTER BE USED TO PAY DOWN CORPORATE DEBT TRIDENT NGL INC SAID IT WILL PURCHASE WITH HELP FROM AN INVESTOR GROUP OCCIDENTAL PETROLEUM CORP'S 45 INTEREST IN TRIDENT AN ARTICLE TUESDAY INCORRECTLY STATED THAT THE INVESTOR GROUP WOULD BUY THE STAKE 9303090065 930309 DIVIDEND NEWS VORNADO INC VORNADO INC A SADDLE BROOK NJ REAL ESTATE COMPANY DECLARED A 3FOR2 STOCK SPLIT EFFECTIVE MARCH 25 TO SHARES OF RECORD MARCH 18 THE SPLIT WILL INCREASE SHARES OUTSTANDING TO ABOUT 161 MILLION FROM 107 MILLION CASH WILL BE PAID IN LIEU OF FRACTIONAL SHARES 9303090064 930309 WORLD MARKETS TOKYO SHARES SOAR 52 DESPITE SLIM IMPETUS POSSIBLY SIGNALING MORE VOLATILITY FOR MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE SHARE PRICES SOARED 52 IN HEAVY TRADING MONDAY MANY TRADERS TOOK THE RALLY AS A SIGN OF WEEKS OF VOLATILITY FOR THE TOKYO MARKET TRADERS NOTING LITTLE HARD ECONOMIC NEWS TO JUSTIFY THE GAINS SAID THEY WERE SURPRISED AT HOW VIOLENTLY THE MARKET SURGED THIS ISN'T GOING TO BUILD THE MARKET'S CREDIBILITY AS A SAFE SECURE PLACE TO INVEST WHEN IT GOES UP 5 IN ONE DAY WITHOUT ANY REAL NEWS SAID ANDREW MCGRATH MARKET STRATEGIST AT CREDIT SUISSE TRUST & BANKING CO THE NIKKEI 225STOCK INDEX WHICH ROSE 5809 POINTS FRIDAY CLOSED AT 1768647 UP 86877 THE BIGGEST ONEDAY GAIN SINCE AUG ON TUESDAY IN TOKYO THE NIKKEI INDEX ROSE 35748 POINTS TO CLOSE THE MORNING SESSION AT 1804395 MONDAY'S VOLUME WAS ESTIMATED AT 550 MILLION SHARES MORE THAN TWICE THE 2689 MILLION SHARES TRADED FRIDAY GAINERS SWAMPED LOSERS 103560 THE RALLY DOESN'T MEAN JAPAN IS PULLING OUT OF ITS NAGGING RECESSION TRADERS SAID IT'S NOT BASED ON ECONOMIC FUNDAMENTALS SAID OSAMU YASAKA DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NIKKO SECURITIES CO BUT WITH THE SURGE IN TRADING VOLUME HE SAID THE MARKET SENTIMENT HAS COMPLETELY CHANGED SEVERAL TRADERS SAID THEY THOUGHT THE RALLY WOULD CONTINUE UNTIL THE END OF THIS MONTH WHEN MOST JAPANESE CORPORATIONS END THEIR FISCAL YEAR NEWFOUND INVESTOR CONFIDENCE AND GOVERNMENT PURCHASES OF STOCK WILL PROBABLY SUPPORT SHARE PRICES THEY SAID A RALLY THROUGH MARCH WOULD DELIGHT JAPANESE CORPORATIONS AND POLICY MAKERS WHO ARE WORRIED THAT BECAUSE OF THE WEAK MARKET COMPANIES WILL HAVE TO BOOK HUGE LOSSES ON THEIR STOCKHOLDINGS THE NIKKEI IS DOWN 93 FROM ITS CLOSE AT THE END OF LAST FISCAL YEAR DESPITE MONTHS OF SUPPORT FROM THE GOVERNMENT AUTHORITIES HAVE BEEN POURING MONEY FROM GOVERNMENT PENSION FUNDS AND THE POSTAL SAVINGS SYSTEM INTO STOCKS AFTER THE BOOKS CLOSE IN APRIL TRADERS SAID THE BIG QUESTION WILL BE WHETHER THE GOVERNMENT WHICH HAS BEEN PRESSING INSTITUTIONS TO REFRAIN FROM SELLING STOCKS WILL LET FINANCIAL INSTITUTIONS SELL OFF SOME OF THEIR HOLDINGS I THINK THE BEAR MARKET IS OVER UNTIL MARCH 31 SAID JOHN ZWAANSTRA FUND MANAGER AT JARDINE FLEMING INVESTMENT ADVISERS LTD AFTER THAT HE SAID YOU'RE GETTING INTO WHETHER THE BANKS WILL SELL THEIR STOCKS TRADERS SAID MONDAY'S RALLY BEGAN WITH A SPATE OF GOVERNMENT BUYING AND WAS ABETTED BY HEAVY PURCHASES BY STOCKFUTURES ARBITRAGE INVESTORS THESE ARBITRAGERS PROFIT ON PRICE DIFFERENCES BETWEEN STOCK FUTURES AND STOCKS BECAUSE A MAJOR STOCKFUTURES CONTRACT EXPIRES THIS FRIDAY ARBITRAGERS WILL BE ACTIVE ALL WEEK TRADERS SAID BUT THE COMPLEXITY OF MANY OF THEIR COMPUTERDRIVEN TRADES MADE IT UNCERTAIN WHETHER THEIR BUYING MONDAY WAS A BULLISH SIGN IN THE AFTERNOON SESSION JAPANESE MUTUAL FUNDS AND FINANCIAL INSTITUTIONS WHICH TEND TO HOLD THEIR SHARES LONGER THAN ARBITRAGE PLAYERS WERE HEAVY BUYERS IN ADDITION SPECULATORS WHO HAD BEEN SELLING BORROWED STOCK IN THE HOPE OF PROFITING ON FURTHER DECLINES IN THE NIKKEI BEGAN BUYING BACK SHARES TO PREVENT LOSSES BOOSTING THE MARKET LONDON STOCKS CLIMBED 12 TO A NEW HIGH MONDAY PROPELLED BY WALL STREET'S SHARP RISE AND HOPES FOR FURTHER EUROPEAN INTERESTRATE CUTS IN FRANKFURT REACTION TO A GERMAN SIGNAL OF LOWER INTEREST RATES WAS MUTED AND SHARES CLOSED HIGHER AFTER A RALLY IN THE FINAL HOUR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 352 POINTS TO A RECORD 29573 ECLIPSING LAST FRIDAY'S RECORD HIGH AND FINISHING ONE POINT OFF MONDAY'S INTRADAY PEAK THE FT 30STOCK INDEX JUMPED 275 POINTS OR 12 TO 22934 VOLUME WAS 6527 MILLION SHARES COMPARED WITH 8601 MILLION SHARES IN THE PREVIOUS SESSION AFTER LANGUISHING IN THE EARLY GOING PRICES SHOT UP AFTER A LEAP FOR THE US LONG BOND TRIGGERED HOPES FOR A STRONG START ON WALL STREET WHICH IN TURN PROMPTED HEAVY BUYING OF THE MARCH STOCKINDEX FUTURES CONTRACT IN LONDON THIS IN TURN PULLED STOCK PRICES UP US SHARE PRICES DID OPEN HIGHER THEN SURRENDERED EARLY GAINS AS THE BOND MARKET RALLY APPEARED TO FALTER BUT AS BOND PRICES FIRMED AGAIN WALL STREET RESUMED ITS RISE PROMPTING A SECOND WAVE OF STOCK BUYING IN LONDON IN FRANKFURT THE DAX 30STOCK INDEX ROSE 12 POINTS TO 169482 AFTER MOVING BETWEEN 167847 AND 169606 PROFITTAKERS CAUSED AN EARLY SELLOFF THOUGH THE GERMAN CENTRAL BANK GAVE A BULLISH SIGNAL FRIDAY WHEN IT SAID IT WOULD CUT ITS INTEREST RATES ON SECURITY REPURCHASE AGREEMENTS THE STOCK MARKET MOSTLY SHRUGGED MONDAY AND SUNDAY'S ELECTION IN HESSE STATE WHERE THE FAR RIGHT SCORED GAINS AGAINST MAINSTREAM POLITICAL PARTIES ALSO HAD LITTLE EFFECT ON THE MARKET IN PARIS STOCKS GAINED ON CORPORATE PLAYS RATECUT HOPES AND THE STRENGTH OF THE DOLLAR AGAINST THE FRENCH FRANC MADRID EQUITIES CLIMBED BOOSTED BY A FIRM BOND MARKET A STRONG SPANISH PESETA AND OPTIMISM ABOUT GERMAN RATE REDUCTIONS BUT IN MILAN STOCKS DROPPED BECAUSE OF POSITIONSQUARING AHEAD OF TECHNICAL DEADLINES THIS WEEK AND THE ITALIAN GOVERNMENT'S HANDLING OF A SCANDAL HONG KONG SHARES LOST GROUND AS INVESTORS TOOK PROFITS ON RECENT GAINS AMID DISAPPOINTMENT THAT A BREAKTHROUGH IN THE SINOBRITISH DISPUTE ABOUT THE TERRITORY'S POLITICAL FUTURE HADN'T EMERGED IN TAIPEI SHARES SLUMPED ON PROFITTAKING FOLLOWING RUMORS THAT THE TAIWAN GOVERNMENT WAS DISSATISFIED WITH THE MARKET'S SHARP APPRECIATION THIS YEAR AND WOULD TAKE UNSPECIFIED ACTION TO SLOW GAINS IN MANILA STOCKS RETREATED AS PARTICIPANTS CASHED IN AFTER LAST WEEK'S SURGE BUT SEOUL PRICES CLIMBED BROADLY POWERED BY INSTITUTIONAL INVESTORS SNAPPING A STREAK OF NINE CONSECUTIVE SESSIONS OF LOSSES AMONG CORPORATE DEVELOPMENTS IN LONDON GLAXO HOLDINGS FELL 8 PENCE OR 12 TO 652 PENCE 944 THE DRUG COMPANY PLAYED DOWN A US FOOD AND DRUG ADMINISTRATION WARNING ABOUT WHAT THE AGENCY TERMED UNJUSTIFIED PROMOTIONAL CLAIMS FOR GLAXO'S ULCER DRUG ZANTAC THE FDA DIDN'T QUESTION THE SAFETY OR EFFECTIVENESS OF ZANTAC WHICH ACCOUNTS FOR ALMOST HALF OF THE COMPANY'S SALES GLAXO SAID IT HAD MET WITH FDA OFFICIALS AND WAS COOPERATING AND HOPED TO SETTLE THE ISSUE SOON 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 9303090063 930309 FINANCING BUSINESS SINGER CO SINGER CO NV NETHERLANDS ANTILLES SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 150 MILLION FACE AMOUNT OF 10YEAR NOTES THE RETAILER AND SEWINGMACHINE MAKER SAID PROCEEDS FROM THE OFFERING WHICH IT EXPECTS TO COMPLETE BY THE END OF THIS MONTH WILL BE USED TO REDUCE SHORTTERM DEBT AND FOR GENERAL CORPORATE PURPOSES THE COMPANY'S HEAD OFFICE IS IN HONG KONG 9303090061 930309 FEDERATED'S PROFIT IN ITS 4TH QUARTER EXCEEDED FORECASTS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL FEDERATED DEPARTMENT STORES INC POSTED BETTERTHANEXPECTED FISCAL FOURTHQUARTER EARNINGS AND SAID IT WILL PREPAY 355 MILLION OF DEBT AND BOOST CAPITAL SPENDING SUBSTANTIALLY IN THE NEXT THREE YEARS FEDERATED SHARES MOVED UP YESTERDAY ON THE NEWS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK WAS QUOTED AT 21375 UP 1375 FEDERATED ALSO ANNOUNCED THAT IT LIFTED TRANSFER RESTRICTIONS ON THE LAST 18 MILLION OF ITS 126 MILLION SHARES OUTSTANDING THE RESTRICTIONS HAD BEEN IMPOSED AS PART OF ITS CHAPTER 11 BANKRUPTCYCOURT REORGANIZATION FEDERATED POSTED NET INCOME OF 99 MILLION OR 78 CENTS A SHARE FOR THE QUARTER ENDED JAN 30 INCLUDING A 61 MILLION CHARGE FOR REFINANCING CREDIT LINES FOR RECEIVABLES A YEAR EARLIER NET WAS 11 BILLION INCLUDING A 217 BILLION ONETIME GAIN FOR DISCHARGE OF DEBT AND A 11 BILLION ONETIME CHARGE RELATED TO ACCOUNTING CHANGES NO PERSHARE FIGURE WAS AVAILABLE FOR THE YEAR EARLIER FEDERATED HAD ITS INITIAL PUBLIC OFFERING IN FEBRUARY 1992 EXCLUDING THE EXTRAORDINARY ITEMS FEDERATED SAID OPERATING PROFIT ROSE 36 TO 2229 MILLION FROM 1637 MILLION BASED IN CINCINNATI FEDERATED WHICH OPERATES 220 DEPARTMENT STORES INCLUDING BLOOMINGDALE'S BURDINES AND JORDAN MARSH SAID ITS SALES ROSE 6 TO 226 BILLION FROM 213 BILLION WE PERFORMED WELL AHEAD OF OUR OWN EXPECTATIONS BY VIRTUALLY EVERY MEASURE OF THE BUSINESS SAID ALLEN QUESTROM FEDERATED CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR THE YEAR ITS FIRST FULL YEAR AS A PUBLIC COMPANY FEDERATED REPORTED NET OF 113 MILLION OR 101 A SHARE WHICH INCLUDED A 197 MILLION ONETIME CHARGE RELATED TO THE DEBT PREPAYMENT COMPARED WITH 8364 MILLION A YEAR EARLIER SALES ROSE 2 TO 708 BILLION FROM 693 BILLION FEDERATED SAID IT RECEIVED APPROVAL FROM ITS LENDERS TO REDEEM AND PREPAY THE ENTIRE 355 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 10 SERIES B SECURED NOTES DUE IN FEB 2000 WHICH CONSTITUTES FEDERATED'S HIGHESTCOST DEBT IT WILL OFFER DEBT HOLDERS 103111 PER 1000 FACE AMOUNT PLUS INTEREST ACCRUED FROM DEC 15 1992 TO APRIL 7 1993 THE REDEMPTION DATE FEDERATED SAID THE PREPAYMENT WILL RESULT IN AN INTEREST COST SAVINGS OF 24 MILLION A YEAR IN ADDITION THE COMPANY SAID ITS BANK LENDERS AGREED TO RAISE THE CAP OF ITS CAPITAL EXPENDITURES BY 62 TO ABOUT 12 BILLION FROM 1993 TO 1995 FEDERATED SAID MOST OF THE INCREASED CAPITAL SPENDING WILL BE USED FOR STORE CONSTRUCTION EXPANSION AND INVESTMENTS IN TECHNOLOGY BASED ON WHAT IT CALLED FEDERATED'S SUBSTANTIAL IMPROVEMENT IN EARNINGS OVER THE PAST YEAR MOODY'S INVESTORS SERVICE INC IS REVIEWING THE RATINGS OF FEDERATED'S LONGTERM DEBT FOR A POSSIBLE UPGRADE MOODY'S IS REVIEWING THE SINGLEB1 RATINGS OF THE 355 MILLION OF NOTES AND 272 MILLION OF SENIOR CONVERTIBLE DISCOUNT NOTES MOODY'S SAID THAT ITS REVIEW WILL FOCUS ON THE COMPANY'S FUTURE CASH FLOWS AND BALANCE SHEET POSITION ESPECIALLY AS IT RELATES TO THE FINANCING OF FUTURE CAPITAL SPENDING MOODY'S NOTED THAT FEDERATED HAD CONTINUED SIGNIFICANT OPERATING PROFIT AND MARGIN IMPROVEMENTS SINCE IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION IN FEBRUARY 1992 9303090060 930309 TECHNOLOGY & HEALTH BRITISH TELECOM TO ASK TO RESELL GLOBAL LINES WASHINGTON BRITISH TELECOMMUNICATIONS PLC PLANS TO ASK THE FEDERAL COMMUNICATIONS COMMISSION FOR PERMISSION TO RESELL INTERNATIONAL TELEPHONE LINKS TO MULTINATIONAL COMPANIES THE REQUEST IS PART OF BT'S PREVIOUSLY REPORTED BILLIONDOLLAR PLAN TO OFFER GLOBAL COMMUNICATIONS SERVICES TO MULTINATIONAL CORPORATIONS THE BRITISH TELEPHONE CONCERN SAID IT WANTS TO PROVIDE MULTINATIONAL COMPANIES WITH ENDTOEND PHONE SERVICE BY LEASING TELEPHONE LINES IN COUNTRIES WHERE IT DOESN'T HAVE ITS OWN NETWORK UNDER THE CURRENT CORRESPONDENT SYSTEM IN WHICH NATIONAL TELEPHONE COMPANIES HAND OFF INTERNATIONAL PHONE CALLS TO ONE ANOTHER SUCH SERVICE ISN'T POSSIBLE BECAUSE THE US AND UK HAVEN'T AGREED TO ALLOW INTERNATIONAL RESALE BETWEEN THE TWO COUNTRIES BT'S PROPOSAL COULD TAKE A YEAR OR MORE TO WEND ITS WAY THROUGH THE FCC PROCESS 9303090059 930309 JAPAN OFFICIAL BLASTS PUSH TO RAISE MINIVAN TARIFF DETROIT JAPAN'S AMBASSADOR TO THE US ATTACKED DETROIT'S PUSH FOR HIGHER TARIFFS ON IMPORTED MINIVANS AS AN UNFAIR TAX ON THE AMERICAN MIDDLE CLASS THE MINIVAN ISSUE WORKS AGAINST A PARTNERSHIP BETWEEN THE US AND JAPAN TAKAKAZU KURIYAMA SAID IN A SPEECH TO THE ECONOMIC CLUB OF DETROIT IT'S ANOTHER TAX ON THE MIDDLE CLASS GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP WANT PRESIDENT CLINTON TO IMPOSE THE SAME 25 TARIFF ON IMPORTED MINIVANS AND FOURDOOR SPORTUTILITY VEHICLES THAT THE GOVERNMENT NOW LEVIES ON IMPORTED TRUCKS THE TARIFF ON MINIVANS AND SPORTUTILITY VEHICLES IS NOW 25 CHRYSLER RECENTLY PLEDGED TO LIMIT PRICE INCREASES ON ITS MINIVANS IF THE US GOVERNMENT SLAPS A 25 TARIFF ON JAPANESE MINIVANS A HIGHER TARIFF THOUGH IS DRAWING STRONG OPPOSITION FROM BOTH THE EUROPEAN COMMUNITY AND THE JAPANESE I CAN'T UNDERSTAND WHY IT'S NECESSARY WHEN THE BIG THREE ALREADY CONTROL 92 OF THE US MINIVAN MARKET MR KURIYAMA SAID IN UNUSUALLY BLUNT REMARKS IT'S A CLEAR DISREGARD OF INTERNATIONAL TRADE RULES WHICH CLASSIFY THE MINIVAN AS A CAR 9303090058 930309 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE WELFARE WOES JOBTRAINING EFFORTS FOR POOR PEOPLE ARE SKIMPY A STUDY FINDS THE 1988 FAMILY SUPPORT ACT ESTABLISHED TRAINING PROGRAMS AND EVEN AUTHORIZED GIVING WELFARE RECIPIENTS SUBSIDIZED JOBS BUT ONLY 430000 OF THE NATION'S 46 MILLION WELFARE RECIPIENTS WERE ENROLLED AS OF SEPTEMBER 1991 AND LESS THAN 5 OF THESE GOT ONTHEJOB EXPERIENCE ACCORDING TO GEORGE WASHINGTON UNIVERSITY'S CENTER FOR SOCIAL POLICY STUDIES MANY RECIPIENTS SUCH AS PARENTS OF YOUNG CHILDREN ARE EXEMPT AND FOR THOSE THAT AREN'T STATES PREFER EDUCATION PROGRAMS TO ACTUAL JOB TRAINING AUTHORS SAR LEVITAN AND FRANK GALLO FEARING A BACKLASH IF MORE WELFARE RECIPIENTS AREN'T PUT TO WORK PROPOSE LIMITING WELFARE TO ONE YEAR OR THREE YEARS FOR PEOPLE IN SCHOOL AND CREATING PUBLICSERVICE JOBS FOR THOSE WHO SUBSEQUENTLY CAN'T FIND WORK PRESIDENT CLINTON FAVORS LIMITING WELFARE AND INCREASING TRAINING BUT HE HASN'T SAID HOW HE WOULD DEAL WITH PEOPLE WHO CAN'T FIND JOBS AFTER THEIR BENEFITS RUN OUT DUAL CAREER PATHS PLEASE BOSSES BUT SOME TECHNICIANS GRUMBLE TWO THIRDS OF COMPANIES SURVEYED BY HEWITT ASSOCIATES SAID THEY ARE HAPPY WITH JOB LADDERS THAT ENABLE PROFESSIONALS TO RISE WITHOUT GOING INTO MANAGEMENT BUT A STAFF ENGINEER AT SHELL OIL CO SAYS THE TECHNICAL PATH IS LESS LUCRATIVE AND TAKES LONGER TO CLIMB AND AN EXXON CORP TECHNICAL EMPLOYEE SAYS THERE IS A CEILING LIMITING HOW FAR ONE CAN GO ON THE TECHNICAL SIDE ROBERT PATTERSON A RESEARCH FELLOW AT JAMES RIVER CORP SAYS MANAGEMENT IS NO LONGER A FASTER TRACK THAN THE TECHNICAL SIDE THOUGH AND DEBRA KAMBURY A MAINTENANCE PROGRAMMER FOR MEAD DATA CENTRAL FEELS SHE IS ON EQUAL FOOTING WITH MANAGERS STILL HALF OF THE COMPANIES SURVEYED BY HEWITT SAID EMPLOYEES SEE MANAGEMENT AS MORE DESIRABLE JUST 5 BELIEVE THE TECHNICAL PATH IS BETTER PRESCRIPTION DRUGS SOME COMPANIES FIND RELIEF FROM SOARING PRICES DISCOUNTS FROM THE DRUG COMPANIES HAVE GOTTEN MUCH DEEPER IN THE LAST YEAR OR SO SAYS SUSAN ARMSTRONG HEALTHPLAN MANAGER FOR ATLANTIC RICHFIELD CO ARCO CUT ITS DRUG COSTS 25 BY LINING UP PHARMACIES TO PROVIDE DISCOUNTS AND BY USING GENERIC SUBSTITUTES HUGHES AIRCRAFT CO SAYS IT SAVES 15 MILLION WITH A MAILORDER PLAN THAT BUYS 4 MILLION OF DRUGS ANNUALLY CHUBB CORP ALSO HAS A MAILORDER PLAN FOR RECURRING PRESCRIPTIONS UNION CAMP CORP'S KRAFT PAPER & BOARD DIVISION LAST YEAR OPENED A PHARMACY FOR EMPLOYEES SOUTHERN CALIFORNIA EDISON CO DISTRIBUTED 7 MILLION IN DRUGS THROUGH ITS PHARMACY SAVING AN ESTIMATED 25 MILLION IT HAS JOINED A GROUP OF OTHER COMPANIES BUYING DRUGS IN BULK THE DRUG INDUSTRY IS CHARGING AN EXCESSIVE AMOUNT FOR THEIR PRODUCT AND NOT PLOWING IT BACK IN THE BUSINESS COMPLAINS HUGHES'S ROBERT PARK OVERTIME VIOLATORS NEARLY 46 OF 600 COMPANIES SURVEYED BY CONSULTING FIRM NE FRIED & ASSOCIATES EXEMPT ONE OR MORE OF THEIR SECRETARIAL LEVELS FROM OVERTIME PAY BUT 27 OF THIS GROUP BELIEVE SOME EXEMPTIONS WOULDN'T STAND UP TO LABOR DEPARTMENT SCRUTINY DESPITE WORKING OVERTIME MANY SECRETARIES INSIST ON BEING EXEMPT BECAUSE THEY VIEW IT AS A SIGN OF PRESTIGE SAYS THE FIRM'S PRESIDENT ELIZABETH FRIED AMERICAN MADE THE CUSTOMS SERVICE THREATENS JOLLY GREEN GIANT WITH HIGHER DUTIES ONLY IN THE FINE PRINT ON THE BACK OF THE COMPANY'S AMERICAN MIXTURES VEGETABLES DOES IT SAY THEY ARE A PRODUCT OF MEXICO PILLSBURY CO SAYS THE VEGETABLES WHICH COME IN SAN FRANCISCO MANHATTAN OR HEARTLAND STYLE ARE PACKAGED IN THE US THOUGH GROWN SOUTH OF THE BORDER PRODUCTIVITY PERILS SOME 69 OF EXECUTIVES REPORTING PRODUCTIVITY GAINS LAST YEAR CREDIT SUCH FACTORS AS WORKFORCE REDUCTIONS CONTRACTING OUT FOR GOODS AND SERVICES OR SHEDDING SOME UNITS THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS REPORTS ONLY 31 CITE CAPITAL INVESTMENT CHANGED LABOR RELATIONS OR IMPROVED OPERATING STRATEGIES SLAVERY ENDURES IN MANY PARTS OF THE WORLD A UNITED NATIONS AGENCY REPORTS MAURITANIA OFFICIALLY ABOLISHED SLAVERY IN 1961 BUT HASN'T STOPPED IT IN PRACTICE THE INTERNATIONAL LABOUR ORGANIZATION SAYS SUDANESE GOVERNMENTBACKED MILITIA SELLS MEMBERS OF THE DINKA TRIBE AS SLAVES FOR 30 TO 60 EACH CHILD SLAVERY IS REPORTED IN SRI LANKA THAILAND AND HAITI HAITIAN REFUGEES REPORTEDLY ARE FORCED TO WORK IN DOMINICAN REPUBLIC SUGAR PLANTATIONS IN BRAZIL CONTRACTORS KNOWN AS GATOS OR CATS ROAM RURAL AREAS HIRING PEOPLE FOR JOBS THAT OFTEN ARE MORE THAN 1000 MILES AWAY WHEN THE WORKERS ARRIVE THEY ARE PAID LESS THAN PROMISED BILLED FOR THEIR FOOD AND TRANSPORTATION AND PURSUED BY GUNMEN IF THEY TRY TO ESCAPE A SYSTEM OF DEBT BONDAGE KNOWN AS ENGANCHE THE HOOK TRAPS WORKERS IN PERUVIAN GOLD MINES THE ILO REPORT SAYS THERE ARE 15 MILLION INDENTURED SERVANTS IN INDIA PAKISTAN HAS 20 MILLION INCLUDING SOME 500000 RECENT AFGHAN REFUGEES THE CHECKOFF STATE AND LOCAL GOVERNMENT WORKERS LAST YEAR AGREED TO CONTRACTS INCREASING WAGES AN AVERAGE OF 21 ANNUALLY THE LOWEST INCREASE SINCE 1984 WHEN FIGURES WERE FIRST COLLECTED TEXAS A&M OFFERS STUDENTS REALITY 101 A SEMINAR ON THE JOB MARKET THE NATIONAL LABOR RELATIONS BOARD ORDERS HONEYWELL CORP TO REINSTATE TECHNICIANS FIRED WHEN THEY REFUSED TO JOIN THE TEAMSTERS UNION 9303090057 930309 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MARCH 5 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER AMARILLO INDUSTRIAL DEVELOPMENT CORP WILL REDEEM ON APRIL 1 1993 ITS SERIES 1983 CORPORATION REVENUE BONDS FIRST INTERSTATE BANK OF DENVER IS TRUSTEE BEMIDJI MINN WILL REDEEM ON APRIL 1 1993 90000 PRINCIPAL AMOUNT OF ITS 6875 HOSPITAL FACILITIES FIRST MORTGAGE REVENUE BONDS SERIES 1978 DUE APRIL 1 2008 NORWEST BANK MINNESOTA NA MINNEAPOLIS IS TRUSTEE CORAL SPRINGS FLA WILL REDEEM ON APRIL 1 1993 THE FOLLOWING SERIES 1979 GENERAL OBLIGATION BONDS ITS 62 DUE JULY 1 19931997 AND ITS 625 DUE JULY 1 1998 AND 1999 BARNETT BANKS TRUST CO NA NEW YORK IS PAYING AGENT DELAWARE ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON APRIL 1 1993 ITS 13 SERIES 1983 INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE APRIL 1 2008 WILMINGTON TRUST WILMINGTON DEL IS TRUSTEE EDDY COUNTY NM WILL REDEEM ITS SERIES A POLLUTION CONTROL REVENUE BONDS HARRIS TRUST AND SAVINGS BANK CHICAGO IS TRUSTEE JACKSONVILLE PORT AUTHORITY WILL REDEEM ON APRIL 1 1993 THE FOLLOWING SERIES 1983 HOSPITAL REVENUE BONDS 92 DUE 1994 93 DUE 1995 9625 DUE 2000 97 DUE 2006 AND 98 DUE 2014 ALL ARE DUE ON APRIL 1 OF THEIR RESPECTIVE YEARS SUN BANK ORLANDO FLA IS TRUSTEE LEWIS INDUSTRIAL DEVELOPMENT AGENCY WILL REDEEM ON APRIL 15 1993 ITS 9 1/8 SERIES C INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE DEC 1 2012 MANUFACTURERS AND TRADERS TRUST BUFFALO NY IS TRUSTEE LIBERTY IND WILL REDEEM ON APRIL 1 1993 375000 PRINCIPAL AMOUNT OF ITS FIRST MORTGAGE REVENUE BONDS SERIES 1983 DUE APRIL 1 2013 PEOPLES BANK & TRUST CO IS TRUSTEE MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON APRIL 1 1993 THE FOLLOWING 1976 HOUSING PROJECT BONDS DUE APRIL 1 2017 80000 PRINCIPAL AMOUNT OF ITS 89 SERIES A 195000 PRINCIPAL AMOUNT OF ITS 85 SERIES B 560000 PRINCIPAL AMOUNT OF ITS 775 SERIES C 295000 PRINCIPAL AMOUNT OF ITS 825 SERIES D 515000 PRINCIPAL AMOUNT OF ITS 775 SERIES E AND 525000 PRINCIPAL AMOUNT OF ITS 775 SERIES F ALSO ON APRIL 1 1993 THE FOLLOWING HOUSING PROJECT BONDS 19721978 SERIES A 19751978 SERIES B 19761977 SERIES C 19761977 SERIES D AND 1976 SERIES E F ALSO ON APRIL 1 1993 THE FOLLOWING HOUSING PROJECT BONDS 1981 SERIES AI AII AIII AIV AND AV STATE STREET BANK AND TRUST CO IS TRUSTEE FOR ALL BONDS MORRISTOWN TENN INDUSTRIAL DEVELOPMENT BOARD WILL REDEEM ON APRIL 1 1993 ITS 8 3/8 SERIES 1975 POLLUTION CONTROL REVENUE BONDS DUE SEPTEMBER 1 2000 CHASE MANHATTAN BANK NA NEW YORK IS TRUSTEE NEWARK NJ HOUSING FINANCE CORPORATION WILL REDEEM ON APRIL 1 1993 30000 PRINCIPAL AMOUNT OF ITS 7 SECTION 8 ASSISTED HOUSING REVENUE BONDS DUE APRIL 1 1995 UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE NORTH CAROLINA MEDICAL CARE COMMISSION WILL REDEEM ON APRIL 1 1993 175000 PRINCIPAL AMOUNT OF ITS 61 SERIES A HOSPITAL REVENUE BONDS DUE APRIL 1 1999 FIRST UNION NATIONAL BANK CHARLOTTE NC IS TRUSTEE UNION ELDERLY HOUSING CORPORATION WILL REDEEM ON APRIL 1 1993 175000 PRINCIPAL AMOUNT OF ITS 1075 SECTION 8 HOUSING REVENUE BONDS DUE APRIL 1 1996 MANUFACTURERS AND TRADERS TRUST BUFFALO NY IS TRUSTEE DAYTON POWER & LIGHT CO WILL REDEEM ON APRIL 1 1993 40000 SHARES OF ITS 8 5/8 SERIES H CUMULATIVE PREFERRED STOCK THE FIRST NATIONAL BANK OF BOSTON IS PAYING AGENT EUROPEAN INVESTMENT BANK WILL REDEEM ON APRIL 1 1993 ITS 8 1/4 NOTES CHASE MANHATTAN BANK NEW YORK IS FISCAL AGENT MISSISSIPPI POWER CO WILL REDEEM ON APRIL 5 1993 ITS 7 1/8 FIRST MORTGAGE BONDS DUE NOV 1 1997 MORGAN GUARANTY TRUST NEW YORK IS TRUSTEE NORTHERN INDIANA PUBLIC SERVICE CO WILL REDEEM ON APRIL 5 1993 ITS 89 SERIES V FIRST MORTGAGE BONDS DUE APRIL 1 2004 HARRIS TRUST & SAVINGS BANK NEW YORK IS TRUSTEE UNIVERSITY OF MICHIGAN WILL REDEEM ON APRIL 1 1993 10295000 PRINCIPAL AMOUNT OF ITS 818875 STUDENT FEE REFUNDING BONDS DUE APRIL 1 19942003 SOCIETY BANK MICHIGAN IS TRUSTEE 9303090056 930309 WHO'S NEWS CINCINNATI BELL INC CINCINNATI BELL INC CINCINNATI BRIAN C HENRY FORMER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MENTOR GRAPHICS CORP WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS TELECOMMUNICATIONS COMPANY MR HENRY 36 YEARS OLD SUCCEEDS DENNIS J SULLIVAN JR WHO RETIRED FEB 12 9303090055 930309 WHO'S NEWS IBM'S JAMES MCGRODDY IS NAMED TOP RESEARCHER ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP NAMED VICE PRESIDENT JAMES MCGRODDY AS ITS TOP RESEARCHER A POSITION IN WHICH HE WILL REPORT TO IBM CHAIRMAN JOHN AKERS DR MCGRODDY 55 YEARS OLD SUCCEEDS JOHN ARMSTRONG AS VICE PRESIDENT SCIENCE AND TECHNOLOGY FOR IBM DR ARMSTRONG 58 WILL RETIRE FROM IBM ON MARCH 31 30 YEARS AFTER HE JOINED IBM RESEARCH AS A STAFF MEMBER THE COMPUTER COMPANY SAID THE RETIREMENT WAS NORMAL AND EXPECTED IN A STATEMENT MR AKERS PRAISED DR ARMSTRONG AS A WORLDCLASS SCIENTIST THE TRANSITION ELIMINATES A LAYER OF MANAGEMENT IN IBM'S FARFLUNG MULTIBILLIONDOLLAR RESEARCH OPERATION WHICH IS CENTERED IN YORKTOWN HEIGHTS NY BUT ALSO HAS MAJOR FACILITIES IN CALIFORNIA SWITZERLAND AND JAPAN IN HIS PREVIOUS JOB AS IBM'S DIRECTOR OF RESEARCH DR MCGRODDY REPORTED TO DR ARMSTRONG RATHER THAN NAME A SUCCESSOR FOR DR MCGRODDY HOWEVER IBM BLENDED THE TWO JOBS INTO A SINGLE POST 9303090054 930309 MOVIES DIGITAL SOUND GETS STAR TURN IN HOLLYWOOD BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD FOR MANY PEOPLE GOING OUT TO THE MOVIES JUST ISN'T ALL THAT SPECIAL ANYMORE IT'S EXPENSIVE THE CRACKERBOX MULTIPLEXES ARE CRAMPED AND THE FLOORS ARE COATED WITH DRIED SODA IT'S MORE CONVENIENT TO WATCH MOVIES AT HOME HOLLYWOOD EXECUTIVES HOPE FANTASTIC SOUND WILL HELP LURE CUSTOMERS BACK SOME OF THE MOVIE INDUSTRY'S GIANTS SONY CORP DOLBY LABORATORIES INC AND THE MCA INC UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO WILL BE ON HAND THIS WEEK AT THE ANNUAL THEATER OWNERS' CONVENTION IN LAS VEGAS TO PUSH DIGITAL AUDIO FORMATS THEY SAY WILL TRANSFORM MOTIONPICTURE SOUND IN THEATERS THAT IN TURN WILL HELP REINVIGORATE THE THEATER BUSINESS AND PREPARE IT FOR THE 21ST CENTURY THEY SAY WITH TAPE DECKS AND BOOMBOXES CHILDREN ARE LISTENING TO DIGITAL SOUND IN THEIR GARAGES SAYS DAN SLUSSER THE ARCHITECT OF MCA'S NEW ENTRY CALLED DIGITAL THEATER SYSTEMS OR DTS MOVIE THEATERS SHOULD HAVE BEEN THERE A LONG TIME AGO BUT THE PROBLEMS ARE DAUNTING AND A QUICK ACROSSTHEBOARD CONVERSION TO A DIGITAL FORMAT FROM TODAY'S ANALOG STANDARD ISN'T LIKELY THEATER OWNERS SAY THE COST OF EQUIPMENT TO SHOW DIGITALLY ENCODED MOVIES NEARLY 20000 A SCREEN FOR SOME SYSTEMS CAN BE PROHIBITIVE FOR EXHIBITORS MOREOVER THEATER OWNERS ARE FRUSTRATED BECAUSE THE DIFFERENT DIGITAL SYSTEMS AREN'T COMPATIBLE WITH EACH OTHER AND THOSE WHO WANT TO GO TOTALLY DIGITAL MAY BE FORCED TO BUY MORE THAN ONE MANY EXHIBITORS INCLUDING THOSE WHO RECOGNIZE THE SUPERIORITY OF DIGITAL SOUND QUESTION WHETHER SUCH AN IMPROVEMENT WILL SELL MORE TICKETS THAT IS SOMETHING THAT MAY BE TRUE IN CALIFORNIA SAYS AN UNCOMMITTED MICHAEL PATRICK PRESIDENT AND CHIEF EXECUTIVE OF THE CARMIKE CINEMAS INC CHAIN WHICH HAS 1570 SCREENS IN NORTH CAROLINA GEORGIA IOWA AND OTHER STATES OTHER SKEPTICS NOTE THAT A HANDFUL OF COMPANIES HAVE LAUNCHED SUCH FORMATS AND BOMBED A JOINT VENTURE BETWEEN EASTMAN KODAK CO AND OPTICAL RADIATION CORP THAT BEGAN IN 1989 WAS A HIGHPROFILE FLOP THE NEW ENTRANTS SAY THEIR SYSTEMS ARE MORE FLEXIBLE AND HAVE STRONGER BACKING FROM HOLLYWOOD'S FILM COMMUNITY DESPITE THE OBSTACLES MANY THEATER OWNERS WILL SIGN ON HOWEVER GRUDGINGLY TO DIGITAL SOUND WHICH PROPONENTS CLAIM REPRESENTS AN ADVANCE IN QUALITY COMPARABLE TO THAT FROM CASSETTES TO COMPACT DISKS HOLLYWOOD'S SOUND ENGINEERS PROMISE THAT MOVIEGOERS WILL SENSE A DRAMATIC DIFFERENCE WHILE THEY BANDY ABOUT ESOTERIC REFERENCES LIKE SUPERIOR DYNAMIC AND FREQUENCY RANGE DIGITAL STEREO BASICALLY COMES DOWN TO CLEANER CRISPER AND CLEARER SOUND IT PURPORTS TO ELIMINATE THE HISSING AND POPPING FREQUENTLY HEARD ON STANDARD ANALOG SOUNDTRACKS MCA'S ROLLOUT OF DTS WILL BE QUICK AND RELATIVELY WIDESPREAD IT SAYS IT HAS RECEIVED VERBAL COMMITMENTS FROM CLOSE TO 1000 THEATERS TO BUY ITS SYSTEM IN TIME TO SHOW JURASSIC PARK THE STEVEN SPIELBERG THRILLER TO BE RELEASED JUNE 11 BY MCA'S UNIVERSAL PICTURES SONY'S SYSTEM CALLED SONY DYNAMIC DIGITAL SOUND OR SDDS WILL BE HEARD ONLY IN FOUR THEATERS SHOWING ARNOLD SCHWARZENEGGER'S SUMMER MOVIE LAST ACTION HERO FROM SONY'S COLUMBIA PICTURES STUDIO THE STUDIO PLANS WIDER DIGITAL RELEASE OF TWO OTHER MOVIES LATER THIS YEAR DOLBY A PIONEER IN MOTIONPICTURE SOUND INTRODUCED ITS DOLBY STEREO DIGITAL FORMAT WITH LAST SUMMER'S BATMAN RETURNS IT HAS EQUIPPED ABOUT 80 THEATERS IN THE US AND HAS HAD 15 FILMS RELEASED WITH THE FORMAT ABOUT 15 TO 20 PRINTS OF EACH FILM'S RELEASE GO OUT WITH THE DIGITAL FORMAT WALT DISNEY CO HAS HAD THE WIDEST DIGITAL RELEASE HAVING ISSUED 32 PRINTS OF ITS HOLIDAY HIT ALADDIN DOLBY SAYS IT IS SIGNING UP AN ADDITIONAL 10 THEATERS A MONTH THE COMPETITORS HAVE LOST NO TIME IN BELITTLING EACH OTHER'S SYSTEMS PERHAPS THE BIGGEST TARGET HAS BEEN MCA'S DTS THE ONLY SYSTEM THAT USES A SEPARATE DEVICE TO PLAY THE CDLIKE SOUNDTRACK THE SYSTEMS OFFERED BY SONY AND DOLBY STORE THE DIGITAL DATA DIRECTLY ON THE FILM EXECUTIVES OF THOSE TWO COMPANIES SAY THE DUAL SYSTEM IS PRONE TO ERROR AND PRESENTS RELIABILITY AND SECURITY PROBLEMS EXECUTIVES OVERSEEING DTS SAY THAT'S RUBBISH THEY CLAIM THE SONY AND DOLBY SYSTEMS ARE THE ONES WITH RELIABILITY PROBLEMS THERE IS VERY LITTLE SPACE ON A FILM PRINT TO STORE DIGITAL DATA AND THAT AVAILABLE SPACE IS VULNERABLE TO MISPRINTING AND DAMAGE FROM USE A DTS BROCHURE CLAIMS THERE'S ALSO BICKERING OVER WHETHER SONY'S EIGHTCHANNEL SYSTEM IS ANY BETTER THAN DOLBY'S SIXCHANNEL SYSTEM SONY SAYS THE DIFFERENCE IS MONUMENTAL DOLBY SAYS IT'S NEGLIGIBLE A MAJOR REASON MCA MAY BE ABLE TO FIND 1000 THEATERS TO INSTALL ITS SYSTEM BY THIS SUMMER IS ITS COST AT JUST UNDER 6000 PER SCREEN IT IS THE LEAST EXPENSIVE PRODUCT SONY'S SDDS DEVELOPED JOINTLY BY SONY ELECTRONICS OFFICIALS AND SOUND ENGINEERS AT ITS MOTIONPICTURE UNIT IS EXPECTED TO BE PRICED UNDER DOLBY'S 20000 BUT SIGNIFICANTLY HIGHER THAN DTS MR PATRICK OF CARMIKE CINEMAS SAYS MCA WILL GIVE A DEMONSTRATION AT CARMIKE'S COLUMBUS GA HEADQUARTERS NEXT WEEK HE SAYS HE IS ALREADY LEANING TOWARD ITS SYSTEM LARGELY BECAUSE OF THE COST AND IS THINKING ABOUT PLAYING JURASSIC PARK DIGITALLY AT MORE THAN 100 THEATERS DOLBY EXECUTIVES WARN THAT YOU GET WHAT YOU PAY FOR IOAN ALLEN VICE PRESIDENT ARGUES THAT DOLBY'S LEVEL OF INSTALLATION AND FOLLOWUP SERVICE IS SUPERIOR IT'S VERY DIFFERENT FROM SENDING A BOX OUT IN THE MAIL WITH A DISCOUNT PRICE PREDICTING THAT DTS WILL BE A FLASH IN THE PAN HE SAYS THE PERSCREEN PRICE OF DOLBY'S EQUIPMENT MAY SOON FALL TO 17000 OR LESS FROM TODAY'S 20000 AT PACIFIC THEATRES A 300SCREEN CHAIN BASED IN LOS ANGELES EXECUTIVES HAVE ALREADY DECIDED THEY WILL HAVE TO BUY TWO SYSTEMS FOR ITS CINERAMA DOME THEATER ON HOLLYWOOD'S SUNSET BOULEVARD IT IS ALREADY EQUIPPED WITH THE DOLBY EQUIPMENT BUT PLANS TO ADD SDDS FOR THE LAST ACTION HERO RUN THIS SUMMER STILL SOME THEATER OPERATORS CRINGE AT SPENDING FOR MULTIPLE SYSTEMS RON REID DIRECTOR OF CONSTRUCTION AND PURCHASING AT THE 1033SCREEN CINEMARK USA INC CHAIN SAYS WE'RE TRYING TO BE ON THE CUTTING EDGE OF TECHNOLOGY BUT I THINK THAT'S A LOT TO ASK OF EXHIBITORS 9303090053 930309 COMMODITIES STRONG DEMAND AND LOW PRODUCTION COMBINE TO RAISE PORKBELLY FUTURES THE DAILY LIMIT BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PORKBELLY FUTURES PRICES LED A STRONG RALLY IN THE CHICAGO MERCANTILE EXCHANGE'S LIVESTOCK COMPLEX AS TRADERS CAME TO TERMS WITH LOWERTHANEXPECTED PORK PRODUCTION PORKBELLY CONTRACT PRICES ROSE BY THE DAILY PRICEMOVE LIMIT AND ANALYSTS SAID THEY WERE EXPECTED TO DO SO AGAIN TODAY TRADERS AT THE MERC'S LIVESTOCK MARKET HAVE BEEN SHOCKED BY WEEKLY HOG SLAUGHTER NUMBERS THAT ARE FAR LOWER THAN THE INDUSTRY WAS ANTICIPATING PROJECTIONS IN THE PAST TWO QUARTERLY US AGRICULTURE DEPARTMENT HOGANDPIG REPORTS HAD LED MANY ANALYSTS TO CONCLUDE THAT PORK PRODUCTION WOULD BE 2 TO 3 HIGHER THIS YEAR THAN IT WAS A YEAR AGO BUT SLAUGHTER HAS BEEN LOWER THAN EXPECTED SINCE THE BEGINNING OF THE YEAR WE'RE JUST NOT SEEING THE SUPPLIES WE WERE LOOKING FOR SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS WE'VE RUN INTO A PERIOD WHERE HOG SLAUGHTER HASN'T BEEN ANYWHERE NEAR EXPECTATIONS LAST WEEK FOR INSTANCE FARMERS KILLED 1728 MILLION HOGS DOWN 38 FROM 1797 MILLION A YEAR EARLIER SLAUGHTER HAD ALSO DECLINED DURING EACH OF THE PREVIOUS TWO WEEKS MR VAUGHT SAID THESE NUMBERS HAVE HELPED TO PRODUCE A SUSTAINED RALLY IN FUTURES PRICES PORKBELLY FUTURES HAVE LED THE WAY BECAUSE OF UNUSUALLY LARGE DEMAND FOR PORK BELLIES OR UNCURED BACON SAID CHARLES LEVITT LIVESTOCK ANALYST FOR SHEARSON LEHMAN BROTHERS IN CHICAGO AFTER A LARGE QUANTITY OF FROZEN PORK BELLIES WERE MOVED OUT OF COLD STORAGE IN JANUARY AN ADDITIONAL THREE MILLION POUNDS OF FROZEN BELLIES CAME OUT IN FEBRUARY THAT LIKELY GAVE US A MARCH 1 FIGURE OF ABOUT 62 MILLION POUNDS OF PORK IN COLD STORAGE IN THE NATION MR LEVITT SAID THAT FIGURE IS 18 BELOW A YEAR EARLIER THE COMBINATION OF LOW PRODUCTION AND STRONG DEMAND HELPED PUSH THE MAY PORKBELLY FUTURES PRICE UP THE DAILY TWOCENT LIMIT TO 4822 CENTS A POUND IN HOG FUTURES PRICES HAVE RISEN MORE OR LESS STEADILY SINCE LAST SEPTEMBER LAST WEEK GLENN GRIMES A PROFESSOR AT THE UNIVERSITY OF MISSOURI SAID AT A NATIONAL PORK PRODUCERS COUNCIL CONFERENCE IN DALLAS THAT HE BELIEVED PORK PRODUCTION WOULD DECLINE ABOUT 4 THIS YEAR JUXTAPOSED AGAINST THE USDA FIGURES THAT HAD PROJECTED AN INCREASE IN PORK PRODUCTION THIS PREDICTION RATTLED FUTURES TRADERS ON FRIDAY AND CAUSED PRICES TO SHOOT SHARPLY HIGHER UPWARD MOMENTUM FROM PROF GRIMES'S PREDICTION REMAINED IN THE HOG MARKET YESTERDAY AT THE MERC THE HOG CONTRACT FOR APRIL DELIVERY SETTLED UP THE 15CENT DAILY LIMIT AT 4875 CENTS A POUND STRENGTH IN THE HOG AND PORKBELLY CONTRACTS SPILLED OVER INTO THE MERC'S CATTLE FUTURES WITH THE APRIL CONTRACT RISING 090 CENT TO 8185 CENTS A POUND BUYING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY WILL PROBABLY CONTINUE TO SUSTAIN THE STRENGTH IN LIVESTOCK PRICES THROUGHOUT THE WEEK ANALYSTS SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY MARKET PARTICIPANTS THEIR ENTHUSIASM DAMPED BY A BEARISH REPORT FROM THE INTERNATIONAL ENERGY AGENCY ABANDONED POSITIONS TOOK PROFITS AND PUSHED PRICES DOWN IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FUTURES FOR APRIL DELIVERY FELL 22 CENTS A BARREL TO SETTLE AT 2071 THE FALL FOLLOWED A RALLY LAST WEEK THAT HAD BEEN DRIVEN LARGELY BY TECHNICAL FACTORS AND SOME TRADERS SAID THEY HAD EXPECTED A DOWNWARD CORRECTION IN PRICES IN CONTRIBUTING TO THE DECLINE THE IEA REPORT ESTIMATED INCREASED PRODUCTION FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN APRIL AND FLAGGING OIL DEMAND IN THE FIRST QUARTER THE PARISBASED IEA SAID OPEC PRODUCTION IN FEBRUARY AVERAGED 2535 MILLION BARRELS A DAY COMPARED WITH 252 MILLION IN JANUARY THE REPORT ATTRIBUTED THE HIGHER PRODUCTION TO INCREASED OUTPUT FROM IRAN AND KUWAIT OPEC PRODUCTION IS BELIEVED TO HAVE RISEN LAST MONTH DESPITE AN ACCORD STRUCK BY THE 12MEMBER GROUP TO LOWER ITS SECONDQUARTER OUTPUT CEILING BY ONE MILLION BARRELS A DAY TO 2358 MILLION BARRELS PRECIOUS METALS FUTURES PRICES DECLINED ACROSS THE BOARD IN NEW YORK IN MOSTLY TECHNICAL SELLING TRADERS SAID INFLATION REMAINS LOW AND THERE'S STRENGTH IN THE EQUITY MARKETS WHICH IS PULLING SPECULATIVE INTEREST AWAY FROM PRECIOUS METALS SAID FRED DEMLER SENIOR METALS ECONOMIST WITH PAINEWEBBER GOLD A CLASSIC HEDGE AGAINST INFLATION CLOSED SHARPLY LOWER ON THE COMMODITY EXCHANGE THE ACTIVELY TRADED APRIL CONTRACT FELL 270 TO 32770 AN OUNCE AMONG THOSE SELLING GOLD FUTURES YESTERDAY WERE AUSTRALIAN GOLD PRODUCERS HE SAID THE TECHNICAL TREND IS DOWN IT'S A REAL NEGATIVE ENVIRONMENT MR DEMLER EXPLAINED THE KEY FEATURE IS THE BUDGET PROPOSAL OF THE CLINTON ADMINISTRATION IT SHOULD REDUCE THE BUDGET DEFICIT AND IT ALSO COULD BE RECESSIONARY HE SAID SILVER FOR MAY DELIVERY SETTLED 35 CENTS LOWER AT 3558 ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SKIDDED 130 TO 34220 WHILE PALLADIUM FOR JUNE DELIVERY ENDED 90 CENTS LOWER AT 10260 ORANGE JUICE THE MAY FUTURES CONTRACT SURGED 380 CENTS TO 8165 CENTS A POUND IN HEAVY VOLUME TRADERS AND ANALYSTS SAID THE ADVANCE ON THE NEW YORK COTTON EXCHANGE EXTENDS A RECENT RALLY IN ORANGE JUICE FUTURES WHICH FOR MONTHS HAVE BEEN BATTERED BY THE EFFECTS OF BUMPER CROPS IN FLORIDA AND BRAZIL THERE'S A COMBINATION OF FACTORS HELPING ORANGE JUICE SAID STEPHEN PLATT A VICE PRESIDENT WITH DEAN WITTER IN CHICAGO RETAIL DEMAND IS STARTING TO REACT TO THE LOWER PRICE LEVELS PREVAILING IN THE BULK MARKET AND DELIVERIES ON THE MARCH CONTRACT HAVE NOT BEEN AS LARGE AS ORIGINALLY ANTICIPATED THUS REDUCING THE AMOUNT OF SUPPLIES ENTERING THE GLUTTED MARKET MR PLATT SAID THAT CURRENT PRICE LEVELS SUGGEST A NEW BASE OF SUPPORT OF AT LEAST 70 CENTS A POUND THE MAY CONTRACT TOUCHED A CONTRACT LOW OF 6925 CENTS A POUND ON FEB 9 EVEN WITH THE BURDENSOME SUPPLY SITUATION MORE ACTIVE DEMAND IS DEVELOPING HE SAID 9303090052 930309 REVIEW & OUTLOOK EDITORIAL ASIDES NAFTA WATCH AS WE NOTED EDITORIALLY LAST WEEK THERE ARE MISGIVINGS AROUND THE AMERICAS ABOUT THE CLINTON ADMINISTRATION'S DECISION TO SERVICE MULTIPLE CONSTITUENCIES FOR THE NORTH AMERICAN FREE TRADE AGREEMENT ORIGINALLY ABOUT INCREASING TRADE NAFTA IS NOW ALSO ABOUT ENVIRONMENTAL POLICIES AND UNION GOALS SO IT'S WORTH NOTING THAT US TRADE REP MICKEY KANTOR MET YESTERDAY WITH THE MEXICAN TRADE SECRETARY JAIME SERRA PUCHE AND TODAY WE MAY DISCOVER MORE ABOUT THE ADMINISTRATION'S DIRECTION WHEN MR KANTOR TESTIFIES TO THE SENATE FINANCE COMMITTEE MEANWHILE ANSWERING DOUBTS THE CANADIAN GOVERNMENT YESTERDAY FORTHRIGHTLY REAFFIRMED ITS SUPPORT FOR NAFTA 9303090051 930309 IEA'S ESTIMATE OF WORLD OIL DEMAND FOR THE FIRST QUARTER IS AGAIN REDUCED BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE INTERNATIONAL ENERGY AGENCY AGAIN CUT ITS ESTIMATE OF FIRSTQUARTER WORLD OIL DEMAND BECAUSE OF SLUGGISH ECONOMIES AND UNSEASONABLY WARM WINTER WEATHER IN A DEVELOPMENT THAT IS LIKELY TO ADD TO PRESSURES ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO PRODUCE LESS OIL IN THE WEEKS AHEAD THE IEA NOW ESTIMATES THAT DEMAND IN THE QUARTER AVERAGED 68 MILLION BARRELS A DAY THAT WOULD BE DOWN 800000 BARRELS A DAY FROM THE AVERAGE FOR THE FIRST THREE MONTHS OF LAST YEAR THE PARISBASED AGENCY REPRESENTS THE WESTERN NATIONS THAT MAKE UP THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT OR OECD THIS IS THE THIRD MONTH IN A ROW THAT IT HAS LOWERED ITS CLOSELYWATCHED DEMAND ESTIMATE FOR THE FIRST QUARTER WHICH IS USUALLY THE YEAR'S PEAKUSE PERIOD THERE WAS SOME IMPACT ON WORLD OIL PRICES YESTERDAY TRADERS INTERPRETING THE IEA'S REPORT AS BEARISH SAID IT EXACERBATED WEAKNESS IN OIL MARKETS WHICH ALREADY WERE HEADED INTO A PRICING CORRECTION ON THE NEW YORK MERCANTILE EXCHANGE THE FUTURES PRICE OF LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY SETTLED 22 CENTS A BARREL LOWER AT 2071 THE IEA'S LATEST ESTIMATE INCLUDED IN ITS MONTHLY OIL MARKET REPORT RELEASED YESTERDAY IN PARIS IS 400000 BARRELS A DAY LESS THAN ITS FEBRUARY PROJECTION THAT WAS DUE IN PART TO FURTHER DOWNWARD ADJUSTMENTS FOR APPARENT OIL DEMAND IN THE FORMER SOVIET UNION BUT MOST OF THE DROP WAS IN ESTIMATES FOR THE OECD A PORTION OF THE OECD REVISION WAS ATTRIBUTED TO NORTH AMERICA MAINLY BECAUSE OF VERY WEAK DELIVERIES IN CANADA IN JANUARY THE IEA SAID IN EUROPE WHERE OIL DEMAND IS NOW EXPECTED TO DECLINE BY SOME 2 THIS QUARTER THE IEA SAID THE REVISIONS ALSO REFLECTED A BIG DROP IN JANUARY DEMAND PARTLY DUE TO MILD WEATHER AND THE FACT THERE WERE TWO FEWER WORKING DAYS BUT IT ADDED THE DEMAND PROJECTIONS ARE BASED ON THE ASSUMPTION OF NO ECONOMIC GROWTH FOR THE QUARTER PENDING RECEIPT OF A NEW FORECAST BY THE OECD THE IEA LEFT ITS SECONDQUARTER DEMAND ESTIMATE AT 659 MILLION BARRELS A DAY UNCHANGED FROM FEBRUARY THAT WOULD BE UP 300000 BARRELS A DAY FROM THE YEAREARLIER LEVEL STILL ACCORDING TO THE IEA'S LATEST FIGURES WORLD OIL SUPPLIES HAVE BEEN RISING AT AN EVEN FASTER PACE ON THE SUPPLY SIDE THE IEA SUGGESTED THAT PRODUCTION IN OPEC AS WELL AS IN SOME NONOPEC REGIONS HAS BEEN HIGHER THAN GENERALLY THOUGHT THE AGENCY ESTIMATED OPEC'S FEBRUARY PRODUCTION AT NEARLY 254 MILLION BARRELS A DAY UP FROM JANUARY OUTPUT OF 252 MILLION BARRELS A DAY THAT IS ONE OF THE HIGHEST ESTIMATES YET FOR OPEC'S FEBRUARY OUTPUT MEANWHILE RISING NONOPEC PRODUCTION IN RECENT MONTHS CONTRIBUTED TO A SIGNIFICANT INCREASE IN OIL SUPPLIES THE IEA SAID WORLD OIL MARKETS GENERALLY HAVE FIRMED SINCE OPEC'S FEBRUARY MEETING IN ANTICIPATION OF MAJOR CUTS IN THE GROUP'S OUTPUT AN ACCORD REACHED AT THE MEETING SET THE ORGANIZATION'S PRODUCTION CEILING AT 236 MILLION BARRELS A DAY FOR THE NEXT FOUR MONTHS MANY IN THE INDUSTRY ARE SKEPTICAL THAT OPEC'S PRODUCTION WILL GET THAT LOW IN THE SECOND QUARTER EVEN THOUGH LEADING EXPORTERS BEGAN REDUCING THEIR OUTPUT THIS MONTH STILL THE IEA'S PROJECTIONS SUGGEST THAT OPEC PRODUCTION MAY NOT HAVE TO FALL THAT LOW TO KEEP OIL PRICES FIRM ALTHOUGH THE AGENCY DOESN'T FORECAST REQUIREMENTS FOR OPEC OIL IT DOES PROJECT NONOPEC SUPPLIES FOR THE SECOND QUARTER WHEN THAT IS TAKEN INTO ACCOUNT ALONG WITH THE IEA'S FORECAST OF SECONDQUARTER WORLD OIL DEMAND THE IMPLIED VOLUMES OF CRUDE OIL LEFT TO OPEC WOULD BE 24 MILLION BARRELS A DAY 9303090050 930309 MARKETING & MEDIA 3DO TO LAUNCH OFFERING TO RAISE ABOUT 30 MILLION BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL THE COMPANY WHICH IS LICENSING HARDWARE AND SOFTWARE TECHNOLOGY FOR AN INTERACTIVE MULTIPLAYER TO CREATE COMPUTERIZED HOME ENTERTAINMENT IS REPORTED TO HAVE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON FRIDAY THE OFFERING TO BE UNDERWRITTEN BY MORGAN STANLEY IS EXPECTED TO CONSIST OF ABOUT 25 MILLION SHARES PRICED AT 10 TO 12 EACH THE PROSPECTUS HASN'T BEEN PRINTED YET MR HAWKINS WOULDN'T COMMENT ON THE OFFERING BUT HE'S BEEN TRAVELING THE COUNTRY RECENTLY SPEAKING TO ANYBODY WHO WILL LISTEN ABOUT 3DO WHICH HE HOPES WILL CREATE AN INDUSTRY STANDARD FOR INTERACTIVE MULTIMEDIA WITH THIS IN MIND THE COMPANY HAS SIGNED UP 142 SOFTWARE LICENSEES WHO ARE WORKING ON DEVELOPING INTERACTIVE GAMES EDUCATIONAL PRODUCTS AND OTHER COMPACTDISKBASED PRODUCTS FOR THE MULTIPLAYER MATSUSHITA AND PERHAPS AT&T WILL BEGIN MANUFACTURING PLAYERS TO HIT STORES THIS FALL 3DO'S GOAL IS TO SELL ABOUT 500000 PLAYERS DURING THE FIRST 12 MONTHS THE OFFERING IS EXPECTED TO PUT IN PUBLIC HANDS A STAKE IN 3DO OF ABOUT 10 ELECTRONIC ARTS A MARKETER OF COMPUTER AND GAME SOFTWARE OWNS THE LARGEST STAKE ABOUT 20 TO 25 THE OFFERING WILL INCLUDE A LOCKUP PROVISION PROHIBITING THE PARTNERS FROM SELLING ANY STOCK FOR 18 MONTHS AND INDEED INDIVIDUALS CLOSE TO THE COMPANY SAY THAT SOME OF THE PARTNERS INCLUDING AT&T ARE BUYING MORE SHARES 9303090048 930309 COMPUTERS JUICEDUP PCS BUILD A MARKET FOR MULTIMEDIA BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MORE THAN A YEAR OF HIGHPOWERED HYPE THE MARKET FOR MULTIMEDIA COMPUTING IS FINALLY STARTING TO ARRIVE COMPUTER RETAILERS REPORT THAT SALES OF MULTIMEDIA PERSONAL COMPUTERS AND MULTIMEDIA UPGRADE KITS ARE ZOOMING AND CDROM DRIVES THE TECHNOLOGICAL BACKBONE OF MULTIMEDIA SYSTEMS ARE IN SUCH DEMAND THAT MANY RESELLERS ARE ON MONTHSLONG BACKLOG EVEN PRESIDENT CLINTON IS JUMPING IN INSTALLING MULTIMEDIA PCS FOR USE IN WHITE HOUSE BRIEFINGS THE POTENTIAL IS THERE TO SELL OODLES AND OODLES OF THESE THINGS SAYS NICK ARNETT PRESIDENT OF MULTIMEDIA COMPUTING CORP A CAMPBELL CALIF MARKET RESEARCH FIRM OF COURSE THE MULTIMEDIA MARKET HAS NEVER BEEN SHORT ON POTENTIAL ANALYSTS FOR MONTHS HAVE PREDICTED AN IMMINENT BOOM IN THE TECHNOLOGY WHICH USES COMPACT DISKBASED MEMORY SYSTEMS AND SPECIAL SOUND BOARDS TO PRODUCE JUICEDUP VIDEO AND AUDIO ON A HOME PC ITS PROPONENTS INSISTED THAT THE PUBLIC WOULDN'T BE ABLE TO RESIST THE JAZZY VERSATILITY OF MULTIMEDIA MACHINES WHICH CAN BE USED FOR EDUCATION ENTERTAINMENT TRAINING OR SALES PROMOTIONS AS WELL AS NUMBERS CRUNCHING AND WORD PROCESSING ANALYSTS NOTE THAT OUT OF A TOTAL PC MARKET OF 25 MILLION UNITS 750000 IS STILL A DROP IN THE BUCKET AND WITH MULTIMEDIA SOFTWARE TITLES IN SHORT SUPPLY THEY SAY IT COULD STILL BE YEARS BEFORE THE MACHINES AMOUNT TO A MAJOR PRESENCE THAT'S NOT TO SAY THOUGH THAT THERE AREN'T SOME CONCRETE SIGNS THAT MULTIMEDIA TECHNOLOGY MAY NOW BE GETTING OFF THE GROUND IN MULTIMEDIA AS IN MOST OTHER AREAS OF COMPUTING THE DRIVING FORCE BEHIND THE RECENT BOOM HAS BEEN PRICE MACHINES THAT ONCE COST 3000 TO 5000 NOW ARE PRICED BELOW 2000 MULTIMEDIA UPGRADE KITS WHICH INCLUDE CDROM DRIVES SOUND BOARDS AND SOFTWARE HAVE FALLEN TO AS LOW AS 450 COMPARED WITH AN AVERAGE OF ABOUT 1000 A YEAR AGO AFTER LIMPING THROUGH THE FIRST HALF OF 1992 MULTIMEDIA SALES EXPLODED IN NOVEMBER AND DECEMBER HELPING TO MAKE LAST YEAR'S CHRISTMAS PC BUYING SEASON THE BEST IN YEARS NOW RETAILERS SAY MULTIMEDIA PCS ARE AMONG THEIR BESTSELLING DESKTOP SYSTEMS THEY'RE HOT AS A FIRECRACKER SAYS ALAN BUSH PRESIDENT OF COMPUTER CITY A DISCOUNT RETAIL CHAIN EVERYBODY WHO IS ANYBODY IS GETTING INTO THE BUSINESS AT COMPUTER CITY'S FORT WORTH TEXAS PARENT COMPANY TANDY CORP OFFICIALS ARE BOOSTING PRODUCTION OF SENSATION A MULTIMEDIA COMPUTER INTRODUCED LAST YEAR TANDY SAYS SENSATION ALREADY HAS OUTPACED SALES PROJECTIONS PROMPTING THE USUALLY LOWKEY COMPANY TO PLAN AN AGGRESSIVE TELEVISION ADVERTISING PITCH FOR THE MACHINE STARTING LATER THIS MONTH APPLE COMPUTER INC MEANWHILE IS ADOPTING MULTIMEDIA COMPUTING AS A CORNERSTONE OF ITS ENTIRE DESKTOP COMPUTING STRATEGY APPLE WATCHERS SAY THEY EXPECT COMING COMPUTERS FROM THE COMPANY TO BE EQUIPPED WITH MORE EXCITING SOUND AND VIDEO CAPABILITIES AND APPLE EXECUTIVES HAVE TOLD ANALYSTS THAT THEY EXPECT TO SELL 15 MILLION CDROM DRIVES THIS YEAR A TENFOLD INCREASE FROM 1992 SALES APPLE'S RIVALS IN THE IBMCOMPATIBLE WORLD COMPAQ COMPUTER CORP AND DELL COMPUTER CORP BOTH INTRODUCED NEW MULTIMEDIA SYSTEMS YESTERDAY IN HOPES OF STEALING SOME OF APPLE'S BUSINESS INDEED MULTIMEDIA VENDORS SAY THEIR RECENT SUCCESS HAS PRODUCED A SHORTAGE OF CDROMS WHICH ARE CAPABLE OF HOLDING 600 MEGABYTES OF DATA OR THE EQUIVALENT OF ABOUT 450 CONVENTIONAL FLOPPY DISKS AT CREATIVE TECHNOLOGY LTD THE LEADING US SELLER OF MULTIMEDIA UPGRADE KITS OFFICIALS SAY DIFFICULTIES IN SECURING DRIVES FROM THE COMPANY'S JAPANESE SUPPLIERS CRIMPED SALES IN THE FOURTH QUARTER ABOUT 30 THE JAPANESE HAVE SEEN THE AMERICAN COMPUTER INDUSTRY GET EXCITED ABOUT CDS A COUPLE OF TIMES NOW SAYS LARRY SAMUELS EXECUTIVE VICE PRESIDENT OF CREATIVE LABS A MILPITAS CALIF SUBSIDIARY OF CREATIVE TECHNOLOGY THEY WERE A LITTLE BIT RELUCTANT TO DIVE INTO IT IN ADDITION TO THE DRIVE PROBLEM MULTIMEDIA PROPONENTS ADMIT THAT THE BUSINESS STILL SUFFERS FROM A SHORTAGE OF COMPELLING SOFTWARE WHILE EDUCATIONAL TITLES FROM COMPANIES LIKE BRODERBUND AND ENCYCLOPAEDIA BRITANNICA HAVE BEEN A HIT AMONG THE SCHOOLAGED SET SOFTWARE FOR BUSINESS OR HOMEOFFICE USERS IS ALMOST NONEXISTENT IT'S REAL CLEAR THAT WHAT YOU'VE GOT IS A LOT OF YUPPIES WHO HAVE PERSONAL COMPUTERS AT HOME AND ARE NOW ADDING MULTIMEDIA CAPACITY FOR THEIR KIDS SAYS MULTIMEDIA COMPUTING'S MR ARNETT FOR THE BUSINESS TO REALLY TAKE OFF ANALYSTS SAY A BROADER RANGE OF TITLES IS A MUST AND THEY SAY THOSE COULD COME EARLY NEXT YEAR AS COMPUTER COMPANIES BEGIN TO ADAPT INTEL CORP'S ZIPPY NEW PENTIUM MICROPROCESSOR INTO THEIR PC LINES EVEN WITHOUT PENTIUM THOUGH MARKET ANALYSTS SAY THEY ARE CONVINCED MULTIMEDIA HAS FINALLY ARRIVED MARKET INTELLIGENCE A MOUNTAIN VIEW CALIF MARKET RESEARCH FIRM PREDICTS MULTIMEDIA HARDWARE AND SOFTWARE SALES WILL GROW 45 THIS YEAR TO 72 BILLION THE FIRM PREDICTS A TOTAL MULTIMEDIA EQUIPMENT MARKET OF ABOUT 24 BILLION BY 1999 WE'RE FINALLY STARTING TO SEE SOME MOVEMENT IN THE MULTIMEDIA WORLD SAYS MARKET WATCHER SEYMOUR MERRIN OF MERRIN INFORMATION SYSTEMS PEOPLE ARE BUYING THE THINGS 9303090047 930309 TECHNOLOGY & HEALTH PC MAKERS JOIN GROUP TO BACK A RIVAL CHIP BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC MOTOROLA INC INTERNATIONAL BUSINESS MACHINES CORP AND FOUR OTHER COMPANIES WILL ANNOUNCE TODAY THAT THEY HAVE FORMED AN ASSOCIATION TO PROMOTE A NEW COMPUTER CHIP AND RELATED TECHNOLOGY PLANNED FOR A NEW GENERATION OF PERSONAL COMPUTERS THE COMPUTER MAKERS FORMED THE GROUP TO HELP PUSH COMPUTER SYSTEMS BASED ON THE POWERPC CHIP WHICH IS BEING JOINTLY DEVELOPED BY APPLE MOTOROLA AND IBM IN A MARKET DOMINATED BY COMPUTER SYSTEMS BASED ON CHIPS MADE BY INTEL CORP THE CHIP IS EXPECTED TO BEGIN SELLING LATE THIS YEAR AND WILL COMPETE HEADON WITH INTEL'S PLANNED PENTIUM MICROPROCESSOR AS THE BRAINS OF THE NEXT GENERATION PCS THE ASSOCIATION NAMED POWEROPEN ASSOCIATION INC WAS ESTABLISHED TO ENCOURAGE SOFTWARE COMPANIES TO CREATE APPLICATIONS SOFTWARE FOR POWERPC SYSTEMS A SPOKESMAN FOR THE ASSOCIATION SAID DEVELOPERS WORKING ON SOFTWARE THAT WILL RUN ON THE NEW CHIP WILL PAY FEES FOR TECHNICAL SUPPORT FROM THE ASSOCIATION HE SAID OTHER FOUNDING MEMBERS OF THE ASSOCIATION INCLUDE HARRIS CORP MELBOURNE FLA AND FRANCE'S THOMSONCSF DOMENIC LACAVA A FORMER VICE PRESIDENT OF DIGITAL EQUIPMENT CORP WAS NAMED ASSOCIATION PRESIDENT THE SPOKESMAN SAID THE ASSOCIATION IS BANKING ON THE STRATEGY THAT BROADENING THE CHOICES OF SOFTWARE AVAILABLE FOR POWERPC COMPUTERS WILL ADD TO THE COMPUTERS' APPEAL AND MARKETABILITY ROBERT SAKAKEENY AN ANALYST WITH INFOCORP SAID SUCH ASSOCIATIONS ALSO SERVE TO ASSURE SOFTWARE DEVELOPERS THAT THEIR PRODUCTS CAN BE USED ON MACHINES MADE BY DIFFERENT MANUFACTURERS AND TO HELP DEVELOPERS AVOID CONFLICTING TECHNICAL SPECIFICATIONS CONSEQUENTLY THERE'S A SENSE AMONG THE SOFTWARE VENDORS THAT THERE AREN'T GOING TO BE ANY TRICKS INVOLVED WHEN THEY START DEVELOPING SOFTWARE MR SAKAKEENY SAID SEPARATELY APPLE IS EXPECTED TO ANNOUNCE LATER THIS MONTH A LINE OF SERVER COMPUTERS THAT ACT AS CENTRAL FILE AND PROCESSING CENTERS FOR DESKTOP COMPUTERS LINKED TOGETHER IN NETWORKS APPLE HAS SORELY NEEDED TO ADD SERVERS TO ITS PRODUCT LINE HAVING HAD TO RELY ON ITS HIGHEND DESKTOP MACINTOSH COMPUTERS TO ACT AS SERVERS WHEN NEEDED OTHER COMPANIES SUCH AS HEWLETTPACKARD CO AND IBM HAVE BEEN SELLING COMPUTERS SPECIFICALLY MADE TO WORK AS SERVERS 9303090046 930309 MARKETING & MEDIA DOW JONES ASIAN TV PROGRAM NEW YORK DOW JONES & CO SAID IT PLANS TO LAUNCH A WEEKLY TELEVISION PROGRAM THE ASIAN WALL STREET JOURNAL REPORT FOR DISTRIBUTION TO BROADCASTERS AND CABLE OUTLETS THROUGHOUT ASIA THE HALFHOUR NEWS MAGAZINE WHICH WILL INCLUDE NEWS AND FEATURE REPORTS ON ASIAN BUSINESS WILL BEGIN IN SEPTEMBER THE PROGRAM WILL BE PRODUCED BOTH IN HONG KONG AND NEW YORK BY WALL STREET JOURNAL TELEVISION A DOW JONES TELEVISION NEWS UNIT 9303090045 930309 DIVIDEND NEWS SYNOVUS FINANCIAL CORP SYNOVUS FINANCIAL CORP A FINANCIAL SERVICES AND BANKING CONCERN IN COLUMBUS GA SAID IT IS BOOSTING ITS QUARTERLY DIVIDEND BY 166 AND EXECUTING A 3FOR2 STOCK SPLIT THE DIVIDEND WILL INCREASE TO 93 CENTS A SHARE FROM EIGHT CENTS PAY DATE FOR THE SPLIT AND DIVIDEND INCREASE IS APRIL 1 TO SHARES OF RECORD MARCH 18 9303090044 930309 HEINZ IS SEEN LIKELY TO TRAIL YEAR'S FORECAST THIRDPERIOD RESULTS TODAY MAY SHOW 260ASHARE TARGET ISN'T ACHIEVABLE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH HJ HEINZ CO IS EXPECTED TO REPORT DISAPPOINTING THIRDQUARTER RESULTS THAT COULD CALL INTO QUESTION THE FOOD COMPANY'S ABILITY TO MEET ITS OFTSTATED YEAREND FORECAST OF 260 A SHARE A GROWING CHORUS OF ANALYSTS BELIEVES HEINZ WILL SOON BACK OFF ITS ESTIMATE EITHER TODAY WHEN IT POSTS THIRDQUARTER RESULTS OR LATER THIS MONTH WHEN ANTHONY JF O'REILLY THE COMPANY'S OUTSPOKEN CHAIRMAN ADDRESSES ANALYSTS SOME ANALYSTS NOTE THAT FISCAL 1992'S REPORTED YEAREND FIGURE OF 240 A SHARE WAS COMPOSED OF 195 A SHARE OF OPERATING EARNINGS AND 45 CENTS A SHARE OF NET EXTRAORDINARY GAINS MEANING FISCAL 1993 EARNINGS WOULD HAVE TO INCREASE 33 TO REACH 260 A SHARE IN DECEMBER A HEINZ SPOKESMAN REITERATED MR O'REILLY'S BELIEF THAT THE COMPANY WOULD ACHIEVE 260 A SHARE FOR THE YEAR WHICH ENDS APRIL 30 HOWEVER SOME ANALYSTS SAY THE COMPANY HAS RECENTLY SOFTENED ITS STANCE CITING FOREIGNCURRENCY DIFFICULTIES PARTICULARLY IN THE UK AND ITALY WHERE HEINZ HAS BIG OPERATIONS THEY'VE BEEN HINTING THAT THEIR FOREIGN CURRENCY SITUATION WILL MAKE IT HARD TO ACHIEVE SAYS WILLIAM LEACH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE WHO FORECASTS 240 A SHARE FOR THE YEAR AND 60 CENTS A SHARE FOR THE THIRD QUARTER ENDED JAN 31 YESTERDAY NOMI GHEZ AN ANALYST WITH GOLDMAN SACHS WHO USUALLY HAS BEEN BULLISH ABOUT HEINZ BECAME THE LATEST ANALYST TO LOWER ESTIMATES SHE NOW FORECASTS 245 A SHARE FOR THE YEAR DOWN FROM HER EARLIER 250ASHARE ESTIMATE AND HAS ALSO LOWERED HER ESTIMATE FOR THE FOURTH QUARTER TO 70 CENTS A SHARE FROM 75 CENTS SHE RETAINED HER ESTIMATE OF 60 CENTS A SHARE FOR THE THIRD QUARTER MS GHEZ CITING THE IMPACT OF A PLUMMETING UK POUND ALSO CUT HER RATING ON THE STOCK TO MARKET PERFORMER FROM BUY I HAVE TO BELIEVE THAT 260 WILL BE VERY DIFFICULT TO ACHIEVE MS GHEZ SAID YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HEINZ COMMON CLOSED AT 4450 UP 125 CENTS ON VOLUME OF 869800 SHARES IN THE YEARAGO THIRD QUARTER HEINZ POSTED NET INCOME OF 1153 MILLION OR 43 CENTS A SHARE ON SALES OF 162 BILLION IN FISCAL 1992'S FOURTH QUARTER THE COMPANY HAD NET OF 1457 MILLION OR 56 CENTS A SHARE ON SALES OF 187 BILLION HEINZ DIDN'T HAVE ANY COMMENT FIGURES ARE ANALYZED TO ACHIEVE ITS 260ASHARE TARGET HEINZ WHICH EARNED 115 A SHARE IN THE FIRST HALF OF FISCAL 1993 WOULD HAVE TO EARN 145 A SHARE IN THE THIRD AND FOURTH QUARTERS 46 MORE THAN THE 99 CENTS A SHARE IT EARNED IN THE SECOND HALF OF FISCAL 1992 IF THE COMPANY POSTS 60 CENTS A SHARE FOR THE THIRD QUARTER THE LATEST CONSENSUS AMONG ANALYSTS FOURTHQUARTER EARNINGS WOULD HAVE TO BE 52 HIGHER THAN THE YEAREARLIER PERIOD FOR HEINZ TO HIT 260 A SHARE FOR THE FULL YEAR DURING THE PAST COUPLE MONTHS AT LEAST THREE OTHER ANALYSTS HAVE CUT THEIR ESTIMATES AMONG THEM PRUDENTIAL SECURITIES' JOHN M MCMILLIN IN EARLY FEBRUARY HE LOWERED HIS ESTIMATE FOR THE YEAR TO 250 A SHARE FROM 260 TUESDAY IS THE DAY SAID MR MCMILLIN MY SENSE IS THEY'RE GOING TO HAVE TO BITE THE BULLET THEY'VE HAD A TOUGH BREAK ON THE UK POUND ITALY HAS BEEN IN DISARRAY AND A VERY STORMY WINTER HERE HAS MEANT PEOPLE AREN'T GOING TO WEIGHT WATCHERS MEETINGS MR MCMILLIN WHO SAYS HEINZ HAS RECENTLY SOFTENED ITS STANCE ON THE 260 ESTIMATE IS ESTIMATING 62 CENTS A SHARE FOR THE THIRD QUARTER AND 250 A SHARE FOR ALL OF FISCAL 1993 9303090043 930309 INTERNATIONAL US BID TO HELP RUSSIA DISARM MOVES SLOWLY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN 800 MILLION US PROGRAM TO HELP RUSSIA DISMANTLE ITS NUCLEAR WEAPONS HAS MOVED AT A GLACIAL PACE ENCUMBERED BY PENTAGON RED TAPE RUSSIAN SECRECY MUTUAL SUSPICION AND THE DIFFICULTY OF GETTING EXPERTS FROM BOTH SIDES TO UNDERSTAND THE OTHER'S SYSTEM THERE WERE 50 TO 60 YEARS OF MISTRUST THAT HAD TO BE OVERCOME SAYS FRED S CELEC DEPUTY DIRECTOR OF OPERATIONS AT THE PENTAGON'S DEFENSE NUCLEAR AGENCY WHICH IS COORDINATING THE PROGRAM CONGRESS AUTHORIZED THE FIRST HALF OF THE 800 MILLION 16 MONTHS AGO BUT ONLY 25 MILLION HAS BEEN SPENT MR CELEC SAYS AN ADDITIONAL 130 MILLION HAS BEEN COMMITTED MEANWHILE MUCH OF THE SCHEME FOR THE PARTIAL DISMANTLING AND STORAGE OF THE WORLD'S LARGEST NUCLEAR ARSENAL REMAINS ON THE DRAWING BOARDS JUST HOW MANY OF THE FORMER SOVIET UNION'S ESTIMATED 35000 NUCLEAR WEAPONS WILL BE INVOLVED AND HOW THEY WILL BE DISMANTLED CONTINUES TO BE A RUSSIAN MILITARY SECRET ACCORDING TO MR CELEC A RETIRED AIR FORCE NUCLEAR ENGINEER THE LARGEST PIECE OF THE PROGRAM THE DESIGN OF A FORTIFIED ELECTRONICALLY SECURED UNDERGROUND BUNKER TO STORE DISMANTLED WARHEADS IS UNDER WAY RUSSIAN PLANS CALL FOR IT TO BE A THIRD OF A MILE LONG AND AS WIDE AS ABOUT 38 US FOOTBALL FIELDS BUT US EXPERTS ARE UNCLEAR ABOUT WHAT THE RUSSIANS ARE GOING TO PUT IN THE STRUCTURE WHICH SOME HAVE DUBBED FORT PLUTONIUM IT COULD BE PLUTONIUM SPHERES THE EXPLOSIVE METAL CORES OF MOST NUCLEAR WEAPONS OR THE PLUTONIUM COULD BE MELTED DOWN AND STORED AS INGOTS ACCORDING TO MR CELEC THEY HAVEN'T SHARED WITH US WHAT THEY'RE GOING TO DO WITH THIS AREA MEANWHILE THE RUSSIANS ARE TRYING TO CRACK THE MYSTERIES OF THE PENTAGON PROCUREMENT SYSTEM THEY HAVE NO FINANCE AND ACCOUNTING SYSTEMS LIKE WE DO IN THE WEST SAYS MR CELEC WHO ADDS THAT IT HAS BEEN A LONG ARDUOUS PROCESS TEACHING THE RUSSIANS HOW TO CONSTRUCT A US GOVERNMENTSTYLE BALANCE SHEET THE DEFENSE NUCLEAR AGENCY IS ALSO ENTANGLED IN DEFENSE DEPARTMENT RED TAPE BECAUSE OF THE WAY CONGRESS AUTHORIZED THE MONEY IT DIDN'T PROVIDE NEW MONEY BUT ORDERED THE PENTAGON TO TAKE THE MONEY FROM OTHER PROGRAMS ACCORDING TO MR CELEC THIS HAS BROUGHT ON MUCH INTERNAL WRANGLING THERE HAS BEEN A PARADE OF US DEFENSE CONTRACTORS SEEKING INVOLVEMENT IN THE PROGRAM BOTH IN WASHINGTON AND IN JOINT VENTURES WITH NEWLY PRIVATIZED COMPANIES IN MOSCOW JANET E MORRIS THE HEAD OF A VIRGINIA COMPANY INVOLVED IN ATTEMPTS TO SET UP SUCH VENTURES SAYS RUSSIAN SCIENTISTS HAVE BEEN SEEKING US COMPANIES TO HELP THEM DISASSEMBLE SOME OF THEIR OLDER NUCLEAR WARHEADS A DIFFICULT AND DANGEROUS JOB MR CELEC SAYS THAT HE'S HEARD SIMILAR RUMORS BUT THAT IN OFFICIAL VISITS RUSSIAN EXPERTS HAVE SAID THEY DON'T HAVE A PROBLEM IN THE DISASSEMBLY AREA RATHER THE RUSSIANS TELL HIM THEY WANT HELP MAINLY ON THE TRANSPORTATION AND STORAGE OF WEAPONS' COMPONENTS SO FAR US AID IS CONCENTRATED ON PROVIDING EMERGENCY EQUIPMENT SUCH AS KEVLAR BLANKETS TO PROTECT RUSSIAN WARHEADS IN SHIPMENT THE DEFENSE NUCLEAR AGENCY IS ABOUT TO SEEK BIDS FROM US COMPANIES TO CONSTRUCT 10000 STAINLESS STEEL DRUMS DESIGNED TO STORE PLUTONIUM REMOVED FROM WEAPONS A RUSSIAN RAILROAD CAR HAS BEEN SENT TO ALBUQUERQUE NM WHERE US SCIENTISTS ARE MODIFYING IT TO INCLUDE TELEVISION CAMERAS MOTION DETECTORS AND OTHER SECURITY SYSTEMS USED TO PROTECT NUCLEAR MATERIALS MR CELEC SAYS IT WILL BE THE PROTOTYPE FOR 115 CARS TO BE BUILT IN RUSSIA TO MOVE PLUTONIUM AND ACCOMPANYING GUARDS ONCE THE CANNISTERS OF PLUTONIUM ARE SHIPPED IN THE RAILROAD CARS FROM BOMBDISASSEMBLY SITES TO FORT PLUTONIUM THEY WILL ENCOUNTER ANOTHER PROBLEM THAT US LABORATORIES AND COMPANIES WILL BE ASSIGNED TO WORK ON HOW TO MONITOR AND ACCOUNT FOR THEM REGULARLY YOU CAN'T JUST SEND PEOPLE IN THERE WITH A CLIPBOARD AND FLASHLIGHT EXPLAINS MR CELEC WHO NOTES THAT THE STORED PLUTONIUM IS RADIOACTIVE AND CAN EVEN EXPLODE WHEN STORED IN THE WRONG CONFIGURATIONS THE RUSSIANS HE ADDS SAY THEY MAY WANT TO STORE 100000 SUCH DRUMS AND THE US IS CONSIDERING THE USE OF ROBOTS OR LEADSHIELDED FORKLIFTS TO MOVE CONTAINERS AROUND THE PLANT AND TO MONITOR THEM THERE WILL BE LOTS OF OPPORTUNITIES FOR AMERICAN BUSINESS IN THIS PROGRAM SAYS MR CELEC AMONG THE MOST CHALLENGING PROBLEMS POSED BY THE RUSSIANS HE SAYS ARE WAYS TO RECYCLE MATERIALS FROM WEAPONS PROGRAMS THAT HAVE CONSUMED THE EQUIVALENT OF HUNDREDS OF BILLIONS OF DOLLARS 9303090042 930309 MCI TO REDEEM DEBENTURES WASHINGTON MCI COMMUNICATIONS CORP PLANS TO CALL FOR REDEMPTION 148 MILLION PRINCIPAL AMOUNT OF ITS 10 SUBORDINATED DEBENTURES DUE APRIL 1 2011 REDEMPTION WILL BE APRIL 1 AT A PRICE OF 108 OF THE PRINCIPAL AMOUNT FOR A TOTAL REDEMPTION PRICE OF 1598 MILLION THE COMPANY SAID INTEREST ON THE DEBENTURES WILL BE PAID APRIL 1 TO HOLDERS OF RECORD MARCH 15 MCI SAID IT WILL FUND THE BUYBACK BY USING SEGREGATED CASH FROM ITS OPERATIONS AND EARNINGS DURING THE QUARTER ENDED DEC 31 AFTER APRIL 1 ABOUT 427 MILLION PRINCIPAL AMOUNT OF THE 10 DEBENTURES WILL REMAIN OUTSTANDING 9303090041 930309 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI THIS RETAILER OF WOMEN'S APPAREL OPTICAL PRODUCTS AND FOOTWEAR NAMED SEVERAL INDIVIDUALS TO NEWLY CREATED SENIOR MANAGEMENT POSITIONS AT ITS FOOTWEAR GROUP OPERATIONS CHARLES E EBERLE 64 YEARS OLD FORMERLY AN INDEPENDENT CONSULTANT AND EXECUTIVE VICE PRESIDENT OF CONSUMER PRODUCTS AT JAMES RIVER CORP WAS NAMED VICE PRESIDENT OF PRODUCT SOURCING HE WILL BE RESPONSIBLE FOR PRODUCT DEVELOPMENT MANUFACTURING INTERNATIONAL SOURCING PURCHASING DISTRIBUTION PLANNING AND QUALITY CONTROL HIS POST BECOMES EFFECTIVE APRIL 1 EDWARD J KLEE 61 FORMERLY CHIEF FINANCIAL OFFICER OF THE COMPANY'S WOMEN'S SPECIALTY RETAILING GROUP WAS NAMED VICE PRESIDENT FINANCE OF THE FOOTWEAR GROUP HIS NEW POST WAS EFFECTIVE FEB 15 MR KLEE WAS SUCCEEDED BY JOHN DISA 38 WHO HAD BEEN VICE PRESIDENTCONTROLLER OF THE SPECIALTY RETAILING GROUP DIANA SALTER 36 MOST RECENTLY VICE PRESIDENTDIRECTOR OF SPACE DESIGN INTERNATIONAL CINCINNATI WAS NAMED VICE PRESIDENT MARKETING HER POST WAS EFFECTIVE MARCH 1 9303090040 930309 FINANCING BUSINESS QUEBEC QUEBEC FILED FOR A SHELF OFFERING OF US3 BILLION OF DEBT SECURITIES AND WARRANTS TO BUY DEBT SECURITIES IN A SECURITIES AND EXCHANGE COMMISSION FILING THE PROVINCE SAID PROCEEDS WILL BE ADDED TO ITS CONSOLIDATED REVENUE FUND AND USED FOR GENERAL PURPOSES OR WILL BE CREDITED TO ITS FINANCING FUND FOR LOANS TO PUBLIC INSTITUTIONS OR THE GOVERNMENT NO UNDERWRITERS WERE NAMED IN THE FILING 9303090039 930309 BUSINESS BRIEF INTEGRATED RESOURCES INC BANKRUPTCY JUDGE REJECTS A REORGANIZATION PROPOSAL A FEDERAL BANKRUPTCY JUDGE IN NEW YORK TOLD THE MANAGEMENT OF INTEGRATED RESOURCES INC TO GO BACK TO THE DRAWING BOARD TO DEVELOP A REORGANIZATION PLAN FOR THE HUGE REAL ESTATE CONCERN US BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR AGREED WITH AN ATTORNEY REPRESENTING JUNIOR CREDITORS WHO WILL LIKELY GET NOTHING UNDER THE CURRENT PLAN IN CITING POTENTIAL LEGAL AND FINANCIAL PROBLEMS THAT MAKE THE MANAGEMENT PROPOSAL UNWORKABLE HE TOLD MANAGEMENT TO TRY TO WORK OUT A CONSENSUAL PLAN WITH ALL CREDITORS OF INTEGRATED THE JUDGE SAID THAT IF SUCH A REORGANIZATION CAN'T BE REACHED HE WANTS MANAGEMENT TO PREPARE A PLAN TO LIQUIDATE THE COMPANY'S MORE THAN 500 MILLION IN ASSETS BESIDES THE MANAGEMENT PROPOSAL ALTERNATIVE PLANS FOR REORGANIZING INTEGRATED HAVE BEEN OFFERED BY THE PRITZKER FAMILY'S PENGUIN REALTY ASSOCIATES LP AND MONEY MANAGERS STEINHARDT MANAGEMENT CO 9303090038 930309 BUSINESS BRIEF PET INC THIRDQUARTER CHARGE SET FOR PLANT SHUTDOWN COSTS PET INC ST LOUIS SAID IT WILL TAKE A CHARGE OF 15 MILLION TO 20 MILLION OR 14 CENTS TO 19 CENTS A SHARE IN THE CURRENT QUARTER FOR THE SHUTDOWN OF PART OF ITS WHITMAN'S CHOCOLATES BUSINESS THE FISCAL THIRDQUARTER CHARGE TO DISCONTINUED OPERATIONS RESULTS FROM PLANT SHUTDOWN EXPENSES FROM THE WHITMAN'S BUSINESS PART OF WHICH IS BEING LIQUIDATED IN THE 1992 FISCAL THIRD QUARTER PET'S COMPARABLE EARNINGS FROM CONTINUING OPERATIONS WERE 252 MILLION OR 23 CENTS A SHARE PET A PACKAGEDFOOD CONCERN SAID IT WILL RECEIVE PROCEEDS OF ABOUT 35 MILLION FROM THE SALE OF OTHER FIXED ASSETS SUCH AS EQUIPMENT AND THE TRADE NAME OF THE WHITMAN'S CHOCOLATES BUSINESS THE PHILADELPHIABASED LOCAL 6 OF THE BAKERY CONFECTIONERY AND TOBACCO WORKERS UNION SAID IT IS PREPARING TO GO TO COURT TO STOP THE SALE OF THESE ASSETS TO WHITMAN'S CANDIES INC AN AFFILIATE OF RUSSELL STOVER CANDY CO THE UNION SAID THE SALE WILL ELIMINATE NEARLY 600 JOBS IN PHILADELPHIA 9303090037 930309 ROMINGER NOMINATED AGRICULTURE DEPUTY WASHINGTON PRESIDENT CLINTON CONTINUING TO FILL SUBCABINET POSITIONS SAID HE WILL NOMINATE RICHARD ROMINGER TO BE DEPUTY AGRICULTURE SECRETARY MR ROMINGER A CALIFORNIA FARMER AND FORMER DIRECTOR OF THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE WOULD BECOME THE NO 2 OFFICIAL AT THE AGRICULTURE DEPARTMENT ALSO AT THE AGRICULTURE DEPARTMENT EUGENE MOOS WAS CHOSEN FOR UNDERSECRETARY FOR INTERNATIONAL AFFAIRS AND COMMODITY PROGRAMS WARDELL TOWNSEND JR FOR ASSISTANT SECRETARY FOR ADMINISTRATION AND FRANCIS VACCA AS ASSISTANT SECRETARY FOR CONGRESSIONAL RELATIONS AMONG OTHER NOMINATIONS ANNOUNCED YESTERDAY MICHAEL STEGMAN WAS CHOSEN TO BE ASSISTANT SECRETARY FOR POLICY DEPARTMENT AT THE DEPARTMENT OF HOUSING AND DEVELOPMENT AND EVERETT EHRLICH WAS PICKED TO BE UNDERSECRETARY FOR INTERNATIONAL AFFAIRS AT THE COMMERCE DEPARTMENT 9303090036 930309 WHO'S NEWS RINGER CORP RINGER CORP MINNEAPOLIS MICHAEL R GOBLET WAS NAMED VICE PRESIDENT OF SALES FOR THIS MARKETER OF LAWN AND GARDEN CARE PRODUCTS MR GOBLET WAS PREVIOUSLY A SALES REPRESENTATIVE AT THE SCOTTS CO 9303090035 930309 INTERNATIONAL FIAT UNIT SIGNS LICENSING ACCORD MILAN ITALIAN COMMERCIAL VEHICLE MAKER IVECO SPA SIGNED A LICENSING AGREEMENT WITH HALLA ENGINEERING OF SOUTH KOREA FOR PRODUCTION OF HEAVY TRUCKS PARENT COMPANY FIAT SPA SAID MONDAY NO FINANCIAL DETAILS WERE AVAILABLE FIAT SAID 250 VEHICLES WILL BE PRODUCED UNDER THE ACCORD IN 1993 MOSTLY OF THE IVECO 330 MODEL THAT NUMBER SHOULD INCREASE TO 1000 TRUCKS A YEAR BY 1997 FIAT SPA IS ITALY'S MAJOR AUTOMOBILE MANUFACTURER ITS IVECO SUBSIDIARY PRODUCES TRUCKS BUSES AND FIRE ENGINES 9303090033 930309 ECONOMY SOME PROGRAMS COULD BE CUT IN BUDGET PACT REDUCING CURRENT PROJECTS ACROSSTHEBOARD SEEN ACCEPTABLE TO PRESIDENT BY DAVID WESSEL AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON AND HIS ECONOMIC ADVISERS HAVE AGREED TO ACCEPT ACROSSTHEBOARD SPENDING CUTS IN EXISTING DOMESTIC PROGRAMS IF THAT'S WHAT IT TAKES TO PROTECT HIS INVESTMENTSPENDING AGENDA IN CONGRESS AFTER WEIGHING LEGISLATIVE TACTICS LAST WEEK CLINTON ADMINISTRATION OFFICIALS SAID THE PRESIDENT AND HIS ECONOMIC ADVISERS REACHED A CONSENSUS THAT THE ACROSSTHEBOARD CUTS WERE PREFERABLE TO OTHER OPTIONS IT WAS THE ONE THAT SEEMED TO FIT OUR PROGRAM BEST ONE PARTICIPANT SAID WITH CONGRESS LOOKING FOR WAYS TO SPEND SOMEWHAT LESS THAN MR CLINTON PROPOSED THE ALTERNATIVES INCLUDE CUTTING DEFENSE MORE DEEPLY THAN HE DID SHAVING HIS PROPOSALS TO INCREASE SPENDING ON HIGHPRIORITY INVESTMENTS OR TARGETING SOME SPECIFIC DOMESTIC PROGRAMS FOR FURTHER CUTS NONE OF THOSE APPEAL TO THE WHITE HOUSE DEMOCRATS ON THE HOUSE BUDGET COMMITTEE LAST NIGHT ANNOUNCED AGREEMENT ON A BUDGET RESOLUTION THAT WOULD LARGELY ACCOMMODATE MR CLINTON'S WISHES THE COMPROMISE AGREEMENT PROPOSES 63 BILLION OF SPENDING CUTS BEYOND THOSE PLANNED BY THE WHITE HOUSE BUT ALSO CONTEMPLATES THAT THE ADMINISTRATION'S INVESTMENT SPENDING WOULD REMAIN MOSTLY INTACT THE WHITE HOUSE SIGNALED YESTERDAY THAT IT SUPPORTED ADDITIONAL CUTS OF AROUND 55 BILLION OVER FIVE YEARS BUT BUDGET COMMITTEE CHAIRMAN MARTIN SABO EXPRESSED CONFIDENCE THAT THE ADMINISTRATION WOULD SUPPORT LAST NIGHT'S AGREEMENT BY MR CLINTON'S RECKONING HE HAS IDENTIFIED ABOUT 330 BILLION OF SPENDING CUTS BEFORE TAKING ACCOUNT OF 153 BILLION OF PROPOSED SPENDING INCREASES SINCE THE BUDGET RESOLUTION IS ONLY A GENERAL BLUEPRINT THE SPECIFIC CUTS WILL BE WORKED OUT THROUGH THE APPROPRIATIONS PROCESS HOWEVER AND MR SABO ACKNOWLEDGED SOME CREATIVE TENSION BETWEEN THE OLD AND THE NEW PROGRAMS THE ADMINISTRATION AND CONGRESS ARE GOING TO HAVE TO MAKE JUDGMENTS LATER IN THE YEAR THE MINNESOTA DEMOCRAT SAID REP CHARLES STENHOLM OF TEXAS A LEADER AMONG CONSERVATIVE DEMOCRATS SEEKING GREATER FISCAL DISCIPLINE PRAISED THE AGREEMENT FOR PRODUCING AN ABSOLUTE FREEZE IN NONMANDATORY FEDERAL SPENDING WHICH WOULD BE HELD BELOW THE 1993 LEVEL FOR EACH OF THE NEXT FIVE YEARS EVEN WITHOUT ADJUSTING FOR INFLATION THE HOUSE PANEL WOULD CUT DEFENSE SOME 870 MILLION MORE THAN MR CLINTON PROPOSED FOR FISCAL 1994 BUT ALSO SEEKS SOME CONTROVERSIAL DOMESTIC CUTS AS WELL FOR EXAMPLE THE COSTOFLIVING ADJUSTMENT FOR THE ONE MILLION FEDERAL CIVILIAN AND MILITARY RETIREES UNDER AGE 62 WOULD BE CUT IN HALF THOSE OVER 62 WOULD BE LIMITED TO A 400 INFLATION ADJUSTMENT IN 1994 AND WOULD RECEIVE ONE PERCENTAGE POINT LESS THAN A FULL INFLATION INCREASE IN 1995 1996 AND 1997 MR SABO SAID WHITE HOUSE OFFICIALS HAVEN'T OBJECTED TO THE BENEFIT CHANGES WHICH WOULD SAVE UP TO 7 BILLION OVER FIVE YEARS BUT ARE CERTAIN TO BE POLITICALLY CONTENTIOUS MR STENHOLM CAUTIONED THAT THERE REMAINS STRONG OPPOSITION TO WIDENING THE DEFICIT IN THE SHORT TERM THROUGH THE 16 BILLION SPENDING PACKAGE THAT MR CLINTON HAS REQUESTED TO SPUR ECONOMIC GROWTH IMMEDIATELY BUT HE SAID HE WAS OPTIMISTIC FURTHER BUDGET CUTS COULD BE FOUND TO FINANCE THE PACKAGE AND ENSURE DEMOCRATIC UNITY BEHIND THE ADMINISTRATION'S ECONOMIC PROPOSALS IF ACROSSTHEBOARD CUTS WERE IMPOSED SLICING SPENDING ON ALL DOMESTIC PROGRAMS BY A SMALL PERCENTAGE WOULD AVOID CONCENTRATING THE PAIN ON ANY PARTICULAR PROGRAM BUT WOULD HIT EFFECTIVE AND EFFICIENT PROGRAMS JUST AS HARD AS ANACHRONISTIC AND INEFFICIENT ONES REPUBLICANS AND SOME DEMOCRATS HAVE SUGGESTED THAT MR CLINTON SCALE BACK HIS INVESTMENT PROGRAM WHICH CALLS FOR INCREASING FEDERAL SPENDING ON HIGHWAYS ENVIRONMENTAL PROGRAMS WORKER TRAINING AND RESEARCH AMONG OTHER THINGS THE PRESIDENT IN REAL SPENDING CUTS OVER THE NEXT FIVE YEARS CUTS 55 BILLION NET SEN PETE DOMENICI R NM SAID AT THE NATIONAL LEAGUE OF CITIES CONFERENCE HERE AND THE REASON IT'S SO LOW IS BECAUSE THE PRESIDENT IS ASKING US TO SPEND 178 BILLION IN NEW PROGRAMS AND NEW ADDONS SO FOR THOSE WHO ASK WHAT WOULD YOU CUT I MIGHT JUST START BY SAYING WHY NOT 75 OF THE INCREASES IF WE'RE TRYING TO GET A DEFICIT UNDER CONTROL MR CLINTON REJECTED THAT COURSE WE HAVE TO STOP SPENDING MONEY ON THINGS THAT DON'T WORK BUT WE HAVE TO CONTINUE TO INVEST IN THINGS THAT DO HE TOLD THE SAME FORUM ONE OF THE CENTRAL DEBATES NOW RAGING IN THIS CAPITAL IS WHETHER THERE IS ANY DIFFERENCE IN THE KINDS OF GOVERNMENT SPENDING THE PRESIDENT SAID IS THERE A DISTINCTION TO BE MADE BETWEEN A SUBSIDY THAT WAS JUSTIFIED 50 YEARS AGO BECAUSE WE NEEDED MORE WOOL IN OUR UNIFORMS AND A SUBSIDY THAT MIGHT BE JUSTIFIED TOMORROW TO GIVE TO PEOPLE WHO START NEW BUSINESSES AND NEW HIGHTECH ENTERPRISES TO GROW JOBS FOR THE FUTURE THE ANSWER MR CLINTON SAYS IS YES MR CLINTON MET WITH DEMOCRATIC MEMBERS OF THE HOUSE BUDGET COMMITTEE AND IS SCHEDULED TO MEET TODAY WITH THEIR SENATE COUNTERPARTS AFTER THE WHITE HOUSE MEETING REP BARNEY FRANK D MASS ONE OF MR CLINTON'S ALLIES ON THE HOUSE BUDGET COMMITTEE PREDICTED THAT THE PRESIDENT'S INVESTMENT PACKAGE WILL RECEIVE MARGINAL REDUCTIONS IN THE COMMITTEE'S PLAN MR CLINTON TOLD REPORTERS HE EXPECTS THE CONGRESSIONAL DEMOCRATS' PLAN WILL STILL CONTAIN THE INVESTMENT STRATEGY THAT I WANTED IF ACCEPTED WITHOUT CHANGE MR CLINTON'S BUDGET WOULD EXCEED THE CEILINGS ON SPENDING SET IN THE 1990 BUDGET LAW AFTER A MEETING WITH WHITE HOUSE AIDES SENATE BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN SAID HE INTENDS TO PROPOSE A BUDGET PLAN THAT CALLS FOR ABOUT 38 BILLION LESS SPENDING IN FISCAL 1994 WHICH BEGINS OCT 1 THAN MR CLINTON PROPOSED AND 11 BILLION OR 12 BILLION LESS FOR FISCAL 1995 THAT'S ABOUT WHAT'S NEEDED TO KEEP SPENDING UNDER THE CEILINGS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA HAS SAID THE ADMINISTRATION INTENDS TO COMPLY WITH THE 1994 CEILING BUT WILL PROPOSE RAISING THE 1995 SPENDING THE CEILINGS APPLY ONLY TO SOCALLED DISCRETIONARY SPENDING THE ROUGHLY 40 OF FEDERAL OUTLAYS THAT IS APPROPRIATED ANNUALLY BY CONGRESS THEY DON'T APPLY TO BENEFIT PROGRAMS SUCH AS SOCIAL SECURITY OR MEDICARE MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9303090031 930309 UNIONS WIN CASE BEFORE SUPREME COURT FOR CONTROL OF PUBLIC BUILDING PROJECTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT HANDED UNIONS A CRITICAL VICTORY OVER NONUNION CONTRACTORS IN THEIR STRUGGLE FOR CONTROL OF PUBLIC CONSTRUCTION PROJECTS THE HIGH COURT'S UNANIMOUS RULING CAME IN A DISPUTE OVER HIRING WAGES AND OTHER LABOR ISSUES RELATED TO THE 61 BILLION CLEANUP OF BOSTON'S POLLUTED HARBOR THE DECISION WILL STRENGTHEN THE POSITION OF UNIONS ACROSS THE COUNTRY IN CONFRONTATIONS OVER GOVERNMENTFUNDED CONSTRUCTION THE JUSTICES SAID THAT A MASSACHUSETTS WATER AGENCY HAD THE AUTHORITY TO REQUIRE CONTRACTORS WORKING ON THE HARBOR CLEANUP TO HIRE ONLY UNION LABOR AND TO AGREE IN ADVANCE ON WAGES BENEFITS AND WORKING CONDITIONS THE AGENCY ENFORCED THE REQUIREMENTS IN HOPES OF PREVENTING COSTLY DELAYS AFTER THE WORK GOT UNDER WAY AN ASSOCIATION OF NONUNION CONSTRUCTION CONTRACTORS HAD FILED A LAWSUIT CHALLENGING THE ARRANGEMENT AMONG MASSACHUSETTS OFFICIALS THE MAIN PRIVATE CONTRACTOR ON THE CLEANUP AND AREA UNIONS THE NONUNION CONTRACTORS CONTENDED THAT THE AGREEMENT WOULD STIFLE COMPETITION AND DRIVE UP COSTS ON THE PROJECT A FEDERAL APPEALS COURT IN BOSTON RULED IN FAVOR OF THE NONUNION CHALLENGERS BUT THE SUPREME COURT REVERSED THAT DECISION THE CASE TURNED ON NARROW TECHNICAL CONSIDERATIONS ABOUT THE RELATIONSHIP BETWEEN STATE AUTHORITY AND FEDERAL LABOR LAW THE NATIONAL LABOR RELATIONS ACT GENERALLY ENCOURAGES COLLECTIVE BARGAINING BETWEEN UNIONS AND EMPLOYERS WITHOUT GOVERNMENT INTERFERENCE THE NONUNION CONTRACTORS CLAIMED THAT MASSACHUSETTS OFFICIALS THEREFORE COULDN'T ENFORCE THE SOCALLED PREHIRE AGREEMENT CONCERNING THE BOSTON HARBOR PROJECT BUT IN HIS OPINION FOR THE COURT JUSTICE HARRY BLACKMUN DISTINGUISHED BETWEEN SITUATIONS IN WHICH STATES IMPROPERLY ACT AS REGULATORS AND INTERFERE WITH FEDERAL LABOR POLICY AND THOSE IN WHICH STATES ACT AS PROPRIETORS AND ARE ESSENTIALLY ANALOGOUS TO PRIVATE BUILDERS MASSACHUSETTS FELL INTO THE PROPRIETOR CATEGORY ACCORDING TO JUSTICE BLACKMUN AND THEREFORE WASN'T PRECLUDED FROM ENFORCING THE PROUNION AGREEMENT THE NATIONAL LABOR RELATIONS ACT WAS INTENDED TO SUPPLANT STATE LABOR REGULATION HE SAID BUT NOT ALL LEGITIMATE STATE ACTIVITY THAT AFFECTS LABOR ON ANOTHER DISPUTED POINT THE MAJORITY ACKNOWLEDGED THAT THE ACT PROHIBITS EMPLOYERS FROM RECOGNIZING A UNION UNLESS EMPLOYEES HAVE CHOSEN THE UNION TO REPRESENT THEM BUT THE JUSTICES STRESSED THAT THE ACT INCLUDES AN EXCEPTION FOR THE CONSTRUCTION INDUSTRY THAT ALLOWS AGREEMENTS RECOGNIZING UNIONS AS REPRESENTATIVES BEFORE THE WORKERS HAVE BEEN HIRED IN THE INTEREST OF PREVENTING DISPUTES AND DELAYS IN ANOTHER DECISION THE SUPREME COURT RULED IN FAVOR OF CORPORATE CUSTOMERS THAT ARE FIGHTING OVER FEES SOUGHT BY INSOLVENT TRUCKING FIRMS THE NARROW PROCEDURAL DECISION AROSE FROM A DISPUTE THAT HAS BECOME COMMON SINCE 1980 WHEN THE TRUCKING INDUSTRY WAS PARTLY DEREGULATED AND MANY CARRIERS RAN INTO FINANCIAL DIFFICULTIES TYPICALLY TRUCKING CUSTOMERS KNOWN AS SHIPPERS HAD NEGOTIATED WITH CARRIERS TO SET RATES THAT WERE LOWER THAN THE OFFICIAL RATES FILED BY THE CARRIERS WITH THE INTERSTATE COMMERCE COMMISSION AFTER BECOMING INSOLVENT DURING THE 1980S MANY CARRIERS LAUNCHED LEGAL ACTIONS SEEKING TO FORCE THEIR CUSTOMERS TO PAY THE DIFFERENCE BETWEEN THE LOWER NEGOTIATED RATES AND THE HIGHER OFFICIAL RATES MANY SHIPPERS HAVE RESISTED CLAIMING THE OFFICIAL RATES WERE UNREASONABLY HIGH THE QUESTION BEFORE THE HIGH COURT WAS WHETHER SHIPPERS MUST PAY THE DISPUTED AMOUNT BEFORE THEY HAVE THE CHANCE TO MAKE THEIR CASE THAT THE OFFICIAL RATES ARE UNREASONABLE THE JUSTICES RULED 81 THAT SHIPPERS DON'T HAVE TO PAY THE DISPUTED AMOUNTS UP FRONT IN OTHER ACTION THE HIGH COURT THREW OUT A RULING THAT SAID A CONVICTED DEFENDANT AUTOMATICALLY FORFEITS THE RIGHT TO APPEAL IF HE ESCAPES BUT IS RECAPTURED BEFORE SENTENCING THE HIGH COURT REITERATED HOWEVER THAT THERE MIGHT BE CIRCUMSTANCES UNDER WHICH A DEFENDANT WHO TRIES TO FLEE WOULD LOSE THE RIGHT TO APPEAL THE 54 RULING ALSO SAID THAT IF A DEFENDANT FLEES WHEN AN APPEAL IS UNDER WAY THE APPEAL MAY BE DISMISSED ORTEGA RODRIGUEZ VS US 9303090030 930309 CREDIT MARKETS BOND PRICES FINISH MIXED IN VOLATILE SESSION EARLY RALLY TRIGGERED OVERSEAS LOSES STEAM BY CONSTANCE MITCHELL AND THOMAS LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES ENDED MIXED AFTER A ROLLERCOASTER SESSION THAT LEFT LONGTERM SECURITIES WITH MODEST GAINS AND SHORTTERM SECURITIES WITH SMALL LOSSES YESTERDAY'S VOLATILE SESSION BEGAN WITH TREASURYS VAULTING HIGHER AND THE YIELD ON THE BOND SINKING TO YET ANOTHER LOW OF 665 THE BOND'S PREVIOUS LOW WAS SET THURSDAY AT 668 BUT THE BUYING FRENZY WHICH WAS TRIGGERED BY OVERSEAS BUYING DIDN'T LAST LONG BY MIDMORNING THE MARKET RAN INTO SELLING PRESSURE IN RESPONSE NERVOUS INVESTORS QUICKLY RETREATED LEAVING THE MARKET TO SEESAW FOR THE REMAINDER OF THE DAY IT WAS VERY VOLATILE VERY THIN KIND OF TRADING WITH NO REAL RHYME OR REASON SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS INC A UNIT OF FIRST CHICAGO CORP THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND ENDED AT 105 5/32 UP ABOUT 1/4 POINT OR 250 FOR A BOND WITH A 1000 FACE AMOUNT THE 30YEAR BOND WAS QUOTED LATE FRIDAY AT A PRICE OF 104 28/32 THE ISSUE'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE EASED TO 672 FROM 674 FRIDAY THE LATEST 10YEAR TREASURY NOTE ALSO ENDED A LITTLE LOWER AT 102 30/32 TO YIELD 585 COMPARED WITH 102 25/32 TO YIELD 587 TRADERS SAID THE SHORTEND OF THE MARKET SUFFERED THE BRUNT OF THE SELLING PRESSURE PARTLY BECAUSE OF RUMORS THAT THE CLINTON ADMINISTRATION WILL SEEK TO CURB BANK HOLDINGS OF TREASURY NOTES AND BONDS BANKS WHICH TEND TO BUY SHORTERTERM TREASURYS HAVE BEEN CRITICIZED FOR PUTTING MORE MONEY INTO TREASURYS THAN INTO COMMERCIAL AND INDUSTRIAL LOANS SOME CRITICS CHARGE THAT THIS TREND HAS EXACERBATED THE CREDIT CRUNCH DESPITE THE SETBACK ON THE SHORT END OF THE MARKET THE UNDERLYING TONE OF THE MARKET REMAINS RELATIVELY GOOD THERE IS STILL A LOT OF MONEY COMING INTO THE MARKET SAID MARIA FIORINI RAMIREZ PRESIDENT OF MARIA RAMIREZ CAPITAL CONSULTANTS INC THE PULLBACK SHE SAID WAS NOT MUCH MORE THAN PROFITTAKING BUT OTHERS AREN'T SO SURE STEVEN RICCHIUTO ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES INC SAID THE JITTERY TRADING ACTIVITY THAT DEFINED YESTERDAY'S SESSION COULD BE THE GLIMMERINGS OF AN ASSET ALLOCATION SWITCH OUT OF FIXEDINCOME SECURITIES AND INTO EQUITIES HE SAID THAT WITH RETURNS ON SHORTTERM TREASURY SECURITIES SO SKIMPY SOME INVESTORS MAY HAVE DECIDED THAT THE TIME IS RIGHT TO EXPLORE THE STOCK MARKET YESTERDAY'S MORNING BOND RALLY WHICH BEGAN IN LONDON WAS SPARKED BY FAVORABLE NEWS ON THE OUTLOOK FOR REDUCING THE BUDGET DEFICIT AMONG OTHER THINGS BOND TRADERS WERE ENCOURAGED BY A REPORT IN YESTERDAY'S WALL STREET JOURNAL INDICATING THAT DEMOCRATS TENTATIVELY AGREED TO ANOTHER 55 BILLION IN SPENDING CUTS TO BE INCLUDED IN PRESIDENT CLINTON'S BUDGET PROPOSAL THAT GOT A LOT OF BUYERS BACK INTO THE MARKET SAID WILLIAM V SULLIVAN SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC TREASURY BONDS ALSO WERE HELPED BY BUYING RELATED TO MUNICIPAL DEFEASANCE PROGRAMS AND BY THE FLOOD OF CASH MOVING OUT OF MORTGAGEBACKED SECURITIES SOME EARLY BUYING ACTIVITY ALSO APPEARED TO BE FROM DEALERS FORCED TO COVER SHORTS POSITIONS WHERE SECURITIES HAD BEEN SOLD IN HOPES OF BEING BOUGHT BACK AT LOWER LEVELS FOR A PROFIT MANY OF THOSE POSITIONS APPEARED TO BE LEFT OVER FROM FRIDAY'S STEEP DECLINES FOLLOWING A MUCH STRONGERTHANEXPECTED FEBRUARY EMPLOYMENT REPORT THOSE TRADES APPEARED TO BE SEVERELY IN THE RED AND THEIR HOLDERS HAD LITTLE CHOICE BUT TO THROW IN THE TOWEL YESTERDAY MORNING MEANWHILE THE TREASURY SOLD 2338 BILLION OF SHORTTERM BILLS AT ITS REGULAR WEEKLY AUCTION THE AVERAGE DISCOUNT RATE ON THE THREEMONTH BILLS WAS 298 WHILE THE AVERAGE RATE ON SIXMONTH BILLS WAS 309 THOSE RATES WERE UP FROM 297 AND 305 RESPECTIVELY IN LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 11 THE 13WEEK BILLS MATURE JUNE 10 1993 AND THE 26WEEK BILLS MATURE SEPT 9 1993 INVESTMENTGRADE CORPORATE BONDS FOLLOWED TREASURYS WITH SHORTTERM SECURITIES POSTING LOSSES OF ABOUT 1/8 POINT WHILE LONGTERM BONDS CLOSED WITH GAINS OF AS MUCH AS 1/4 POINT JUNK BONDS WERE LITTLE CHANGED MARRIOTT CORP BONDS CLIMBED ON REPORTS THAT THE COMPANY IS PROPOSING TO MODIFY ITS MUCHCRITICIZED PLAN TO SPLIT INTO A PROFITABLE HOTEL COMPANY AND A REAL ESTATE COMPANY LOADED WITH DEBT THE MODIFICATION COULD MAKE THE RESTRUCTURING LESS ONEROUS TO BONDHOLDERS TRADERS SAID THAT MARRIOTT SECURITIES REMAIN THINLY TRADED WITH RETAIL INVESTORS DOING MUCH OF THE BUYING MANY LARGE INSTITUTIONAL INVESTORS ARE HOLDING ON TO THE BONDS PENDING THE OUTCOME OF A NUMBER OF LAWSUITS AGAINST MARRIOTT TRADERS SAID THAT'S LIMITING THE NUMBER OF BONDS AVAILABLE TO THE SECONDARY MARKET MARRIOTT BONDS PLUNGED 30 FOLLOWING NEWS OF THE PROPOSAL TO SPLIT THE COMPANY IN TWO AT THE HEIGHT OF INVESTOR CONCERN MARRIOTT BONDS WERE YIELDING MORE THAN 14 MEANWHILE A LARGE NUMBER OF NEW JUNKBOND OFFERINGS HIT THE MARKET YESTERDAY TIPHOOK FINANCE CORP GENEVA STEEL MAYFAIR SUPER MARKETS INC AND PANHANDLE EASTERN PIPE LINE INC CO A UNIT OF PANHANDLE EASTERN CORP SOLD 660 MILLION OF NEW JUNK BONDS SYNDICATE OFFICIALS REPORTED THAT ALL OF THE DEALS WERE QUICKLY SNAPPED UP BY YIELDHUNGRY INVESTORS HIGHYIELD MUTUAL FUNDS AMONG THE LARGEST BUYERS OF JUNK BONDS ARE SEEING HUGE INFLOWS EACH WEEK AS INVESTORS POUR MONEY INTO THE HIGHESTYIELDING SECURITIES AVAILABLE MONEY MANAGERS ESTIMATE THAT 400 MILLION TO 600 MILLION OF NEW MONEY IS POURING INTO JUNK FUNDS EACH WEEK WE'VE GOT A TREMENDOUS AMOUNT OF NEW MONEY COMING IN EACH DAY THAT NEEDS TO BE PUT TO WORK SAID ONE HIGHYIELD MUTUAL FUND MANAGER RIGHT NOW THERE'S TOO MUCH NEW MONEY CHASING TOO FEW NEW ISSUES MOST MAJOR EUROPEAN BOND MARKETS CONTINUED TO RALLY YESTERDAY SUPPORTED BY THE PROSPECT OF A CUT IN OFFICIAL GERMAN INTEREST RATES WITHIN THE NEXT COUPLE OF WEEKS MANY ANALYSTS INTERPRETED LAST WEEK'S MOVE BY GERMANY'S CENTRAL BANK TO ALLOW MARKET INTEREST RATES TO EASE AS A SIGN THAT IT IS PREPARING THE WAY FOR A CUT IN OFFICIAL INTEREST RATES THE BUNDESBANK IS DEFINITELY PREPARED FOR A RATE CUT BUT IT'S VERY ANXIOUS TO AVOID GIVING THE MARKET A ONEWAY BET SAYS MICHAEL BURKE A EUROPEAN BOND MARKETS ANALYST AT YAMAICHI INTERNATIONAL EUROPE LTD THE KEY TO THE CENTRAL BANK'S STRATEGY IS TO LIMIT THE PRESSURE ON THE FRENCH FRANC DURING FRANCE'S NATIONAL ASSEMBLY ELECTIONS ON MARCH 21 AND MARCH 28 MR BURKE SAID THE FRANC'S CONTINUED WEAKNESS IS STILL SEEN AS THE MAIN THREAT TO THE CURRENCIES THAT MAKE UP THE EUROPEAN EXCHANGE RATE MECHANISM PART OF THE BUNDESBANK'S STRATEGY IS TO KEEP AN EASING HANGING OVER THE MARKET LIKE A SWORD IN CASE ANYONE GETS THE IDEA OF SELLING THE FRENCH FRANC AHEAD OF THE ELECTIONS SAID MR BURKE HOWEVER A WAVE OF SELLING BY INSTITUTIONS AND CORPORATIONS AS OPPOSED TO SPECULATORS IS LIKELY TO CAUSE THE FRANC TO BE DEVALUED JUST AS THE POUND LIRA AND SWEDISH KRONA HAVE BEEN IN TRADING YESTERDAY BRITAIN'S 9 GOVERNMENT BOND DUE IN 2008 WAS QUOTED AT 108 10/32 UP 10/32 FROM LATE FRIDAY TO YIELD 805 IN GERMANY THE GOVERNMENT'S 7 1/8 BOND DUE 2003 WAS UP SLIGHTLY AT 10413 TO YIELD 654 INTERMEDIATETERM GERMAN NOTES POSTED LARGER GAINS WITH THE 7 GOVERNMENT NOTE DUE 1997 UP 011 POINT AT 10349 TO YIELD 613 MORTGAGE SECURITIES LOST MOMENTUM AFTER MORNING GAINS FINISHING MIXED AND LITTLE CHANGED ALL SECTORS OF THE DEBT MARKET ENJOYED SUPPORT EARLY IN THE DAY FROM DEALERS AND INVESTORS COVERING SHORT POSITIONS WHICH HAD BEEN SET UP IN FRONT OF THE FEBRUARY EMPLOYMENT REPORT BUT THE SHORTCOVERING WAS DONE EARLY MORTGAGE VOLUME TRAILED OFF AS DID PRICES AND TREASURYS WERE LEFT TO KNOCK AROUND IN A VOLATILE SESSION MORTGAGE BANKERS SOLD OFF SECURITIES ALSO DRIVING DOWN PRICES MORTGAGE BANKERS OFTEN APPEAR TO REACT TO ALMOST EVERY MOVE IN THE MARKET BY SELLING IF RATES FALL MORTGAGE BANKERS GET HURT IF RATES RISE THEY GET HURT POINTS OUT ANDREW KESSEL DIRECTOR OF MORTGAGEBACKED SECURITIES AT BARCLAYS DE ZOETE WEDD SECURITIES INC MR KESSEL'S OBSERVATION STRIKES AT THE CORE OF HOW HOMEOWNERS AFFECT THE MARKET DROPPING RATES SPARK HOME BUYING OR REFINANCING BUT RISING RATES CAN DO THE SAME BECAUSE PEOPLE HURRY TO LOCK IN RATES BEFORE THEY CLIMB TOO HIGH AGAIN THUS EITHER SCENARIO CAN CREATE SUPPLY AND HURT THE MORTGAGE MARKET INTERESTONLY MORTGAGE SECURITIES CONTINUED TO SUFFER EARLY YESTERDAY BY LATE IN THE DAY HOWEVER IOS RECOVERED SOME GROUND AS TREASURYS BACKED OFF IOS ARE MADE UP ENTIRELY OF INTEREST PAYMENTS SO THE STRIPS DO BETTER WHEN RATES RISE BECAUSE PREPAYMENTS THEORETICALLY SLOW AND THE IO'S MATURITY GROWS STRIPS TRUST 203 LOST ABOUT A POINT IN THE MORNING DROPPING TO 24 1/4 BY LATE YESTERDAY IT HAD RECOVERED TO 25 LESS THAN A MONTH AGO THE TRUST WAS TRADING AT 34 1/2 LATE IN NEW YORK GINNIE MAE 7 SECURITIES FOR MARCH DELIVERY WERE DOWN 6/32 AT 101 24/32 FREDDIE MAC GOLD 7 SECURITIES AND FANNIE MAE 7 SECURITIES WERE BOTH DOWN 1/32 AT 101 14/32 AND 101 7/32 RESPECTIVELY SOME HIGHER COUPONS WERE UP 1/32 TO 7/32 IN THE PRIMARY MARKET ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL WAS ANNOUNCED BY THE FEDERAL HOME LOAN MORTGAGE CORP THE 300 MILLION REMIC IS UNDERWRITTEN BY MERRILL LYNCH & CO AND IS BACKED BY FREDDIE MAC'S GOLD 7 MORTGAGE SECURITIES REMIC ISSUANCE IS SLOWING AND THE FLATTENING OF THE TREASURY YIELD CURVE SEEN YESTERDAY WON'T HELP DEAL MAKERS THE SPREAD BETWEEN THE YIELDS OF THE TWOYEAR NOTE AND THE 30YEAR BOND FELL TO 276 POINTS LATE YESTERDAY FROM 285 POINTS FRIDAY BECAUSE OF ARBITRAGE CONSIDERATIONS IT'S LESS PROFITABLE TO UNDERWRITE REMIC DEALS WHEN THE YIELD CURVE FLATTENS MUNICIPAL BONDS FINISHED 1/8 TO 1/2 POINT HIGHER YESTERDAY FOLLOWING THE PRICE TREND IN TREASURYS MEANWHILE THE LARGEST ISSUE PRICED YESTERDAY WAS THE SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY'S 2897 MILLION SERIES 1993A POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS FOLLOWING THE AFTERNOON REPRICING BY MORGAN STANLEY & CO AT WHICH YIELDS WERE LOWERED BY 003 TO 010 YIELDS RANGED FROM 230 IN 1994 TO 552 IN 2016 MOODY'S INVESTORS SERVICE INC HAS RATED THE OFFERING SINGLEA1 AND STANDARD & POOR'S CORP HAS ASSIGNED A SINGLEAPLUS RATING IN TRADING THE RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP'S 525 OF 2021 SERIES B SPECIAL OBLIGATION REFUNDING BONDS FIRMED 1/2 POINT TO 94 1/4 TO YIELD 562 EARLIER THAT ISSUE HAD BEEN UP AS MUCH AS 3/4 MARKET PARTICIPANTS ARE LOOKING AHEAD TO A LONG SCHEDULE OF OFFERINGS IN THE NEXT FEW DAYS THOSE EXPECTED TO TAP THE MARKET INCLUDE NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 MASSACHUSETTS WATER RESOURCES AUTHORITY AND MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO THERE'S A LOT OF CASH ON THE SIDELINES AND INVESTORS ARE GEARING UP FOR PURCHASES SAYS A NEW YORK TRADER INVESTORS HAVE BEEN PURCHASING MUNICIPAL BONDS AGGRESSIVELY FOR A NUMBER OF WEEKS BECAUSE OF THE CLINTON ADMINISTRATION'S PROPOSAL FOR HIGHER FEDERAL INCOME TAXES 9303090029 930309 WHO'S NEWS WESTINGHOUSE CHIEF DOES NOT LEAVE EMPTYHANDED LEGO WHO LEFT IN JANUARY GETS 800000 IN SEVERANCE A PENSION RAISE AND MORE BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PAUL LEGO THE WESTINGHOUSE ELECTRIC CORP WHO RESIGNED UNDER PRESSURE WILL BENEFIT FROM A RICH SEVERANCE PACKAGE ACCORDING TO A DRAFT OF THE COMPANY'S PROXY REPORT CIRCULATED TO SOME INSTITUTIONAL SHAREHOLDERS THE REPORT SAYS THE 62YEAROLD MR LEGO WILL RECEIVE AN 800000 SEVERANCE PAYMENT ALONG WITH A TWOYEAR CONSULTING CONTRACT PAYING 600000 A YEAR MOREOVER MR LEGO'S ANNUAL PENSION WILL BE RAISED TO 910000 FROM 710000 TREATING HIM AS IF HE HAD STAYED AT THE COMPANY TWO MORE YEARS THE REPORT SAYS THE PAYMENTS ARE IN RECOGNITION OF HIS STRATEGIC INITIATIVES AND WILLINGNESS TO PERFORM CONSULTING SERVICES MOREOVER MR LEGO WILL CONTINUE TO BE ELIGIBLE FOR A 11 MILLION LONGTERM BONUS PAYABLE IN 1995 IF THE COMPANY MEETS UNSPECIFIED PERFORMANCE THRESHOLDS HE ALSO RETAINS OPTIONS TO BUY 50000 SHARES OF STOCK AT 1625 WESTINGHOUSE STOCK WAS TRADING AT 1350 UP 25 CENTS ON THE NEW YORK STOCK EXCHANGE YESTERDAY DURING MR LEGO'S TENURE THE COMPANY WAS BESET BY FLAGGING EARNINGS IN ITS CORE MANUFACTURING AND BROADCASTING OPERATIONS AND MORE THAN 5 BILLION IN WRITEDOWNS ON BAD REAL ESTATE AND LEVERAGED BUYOUT LOANS BY ITS CREDIT UNIT WESTINGHOUSE FINANCIAL SERVICES INC MR LEGO WHO HAS SAID HE RESIGNED VOLUNTARILY ANNOUNCED A PLAN IN NOVEMBER TO SELL THE UNIT AND A CLUSTER OF LONGTIME BUSINESSES TO PAY DOWN BANK DEBT FOR A TIME THE ACTION ENDED TALK OF HIS STEPPING DOWN BUT EXECUTIVES AND PEOPLE CLOSE TO THE BOARD SAID MR LEGO CONTINUED TO LOSE THE CONFIDENCE OF KEY DIRECTORS INCLUDING FORMER DANA CORP CEO RENE MCPHERSON FORMER DEFENSE SECRETARY FRANK CARLUCCI AND RETIRED AMOCO CORP CHIEF RICHARD MORROW ONE CONTRIBUTING FACTOR THESE SOURCES SAY WAS THE FAILURE OF EFFORTS TO SELL THE CREDIT UNIT'S LOANS TO GENERAL ELECTRIC CO FOR THE SECOND TIME IN A YEAR EXECUTIVES SAY THERE WERE ALSO STRONG FEELINGS AMONG TOP MANAGERS WHICH WERE COMMUNICATED TO DIRECTORS THAT MR LEGO WASN'T PROVIDING FIRM LEADERSHIP THE RESULT PEOPLE CLOSE TO THE BOARD SAY WAS A SURPRISE REQUEST FOR HIS RESIGNATION AT A LATE JANUARY BOARD MEETING A COMPANY SPOKESMAN COULDN'T BE REACHED MR LEGO WAS UNAVAILABLE TO COMMENT GARY M CLARK 57 YEARS OLD WHO HAD LED THE EFFORTS TO SELL THE NONFINANCIAL BUSINESSES HAS BEEN SERVING AS ACTING CEO WHILE A BOARD COMMITTEE SEEKS A PERMANENT SUCCESSOR 9303090028 930309 BUSINESS BRIEF TRANSCISCO INDUSTRIES INC CREDITORS AGREE IN PRINCIPLE WITH REORGANIZATION PLAN TRANSCISCO INDUSTRIES INC SAID IT SIGNED AN AGREEMENT IN PRINCIPLE WITH ITS MAJOR CREDITORS FOR A REORGANIZATION PLAN TO ALLOW IT TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THE PACT CALLS FOR THE SAN FRANCISCO RAILCAR AND EQUIPMENT LEASING COMPANY TO EXCHANGE A 5 MILLION NOTE FROM PLM INTERNATIONAL INC AND 34 MILLION PLM SHARES FOR 163 MILLION OF TRANSCISCO'S SUBORDINATED DEBT NOW IN DEFAULT PLM IS ALSO A TRANSPORTATION EQUIPMENT LEASING COMPANY IN SAN FRANCISCO IN EXCHANGE TRANSCISCO SAID IT WILL RECEIVE FROM ITS FORMER BONDHOLDERS 40 OF THE PRINCIPAL AND INTEREST FROM THE 5 MILLION NOTE THE AGREEMENT CALLS FOR TRANSCISCO TO RESOLVE OBLIGATIONS TO BANKS AND OTHER CREDITORS OVER A PERIOD TO BE DETERMINED THE COMPANY SAID IT ALSO WILL CONVERT ALL ITS COMMON SHARES INTO A SINGLE CLASS OF VOTING STOCK TRANSCISCO SAID IT EXPECTS TO REACH A FINAL AGREEMENT ON THE PLAN WITHIN 90 DAYS THE COMPANY HAS BEEN OPERATING UNDER CHAPTER 11 SINCE JULY 1991 9303090027 930309 BUSINESS BRIEF MIDLANTIC CORP PUBLIC OFFERING IS SLATED FIRSTPERIOD GAIN EXPECTED MIDLANTIC CORP SAID IT PLANS A PUBLIC OFFERING OF FIVE MILLION SHARES AND EXPECTS TO TAKE A 40 MILLION GAIN IN THE FIRST QUARTER AFTER ADOPTING AN ACCOUNTING CHANGE FOR INCOME TAXES THE REGIONAL BANK HOLDING COMPANY BASED IN EDISON NJ ALSO SAID IT MIGHT SELL UP TO 250 MILLION OF POORPERFORMING REAL ESTATE ASSETS AS PART OF AN EFFORT TO IMPROVE ASSET QUALITY SHARE PRICE HASN'T BEEN DETERMINED MIDLANTIC SAID MIDLANTIC SHARES CLOSED YESTERDAY AT 20125 UP 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING MIDLANTIC HAD ABOUT 144 BILLION IN ASSETS AT DEC 31 STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC SAID THEY WOULD CONSIDER RAISING THEIR RATINGS ON THE COMPANY'S DEBT S&P PLACED MIDLANTIC AND UNIT MIDLANTIC BANKS INC'S SINGLEB SENIOR DEBT RATING AND TRIPLECPLUS SUBORDINATED DEBT RATING ON CREDITWATCH WITH POSITIVE IMPLICATIONS ABOUT 475 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID ITS REVIEW AFFECTS ABOUT 440 MILLION OF DEBT 9303090026 930309 CORPORATE FOCUS DISSIDENT SHAREHOLDERS PUT XTRA ON ROAD TO RECOVERY NEW MANAGEMENT FOLLOWS THROUGH ON PROMISE TO ROUSE SLEEPY COMPANY BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THREE YEARS AGO DISSIDENT SHAREHOLDERS OF XTRA CORP OUSTED MANAGEMENT IN A BITTER PROXY FIGHT AND PLEDGED TO WAKE UP THE SLEEPY COMPANY LO AND BEHOLD THEY DID UNLIKE MANY CORPORATE RAIDERS WHO OFTEN FAIL TO FOLLOW THROUGH WITH THEIR PLANS THE NEW TEAM INCREASED EFFICIENCY CUT SPENDING ON EXECUTIVE PERKS REDUCED DEBT AND BOOSTED EARNINGS OF THE TRANSPORTATION EQUIPMENT LEASING COMPANY THEY KEPT ALL THEIR PROMISES MARVELS ANDREW FEINMAN AN ANALYST AT FIRST ALBANY CORP CONCEDES AN OUSTED XTRA BOARD MEMBER WHO ASKED NOT TO BE IDENTIFIED MUCH TO MY PERSONAL DISMAY I THINK THEY'VE DONE AN EXCELLENT JOB THEY HAVE TO BE GIVEN CREDIT INDEED SINCE THE DISSIDENTS TOOK OVER IN MARCH 1990 XTRA'S EARNINGS INCREASED TO 27 MILLION OR 377 A SHARE IN THE 1992 FISCAL YEAR ENDED SEPT 30 FROM A LOSS OF 119 MILLION OR 271 A SHARE IN FISCAL 1990 THE BOTTOM LINE IMPROVED SHARPLY DESPITE AN 8 REVENUE DECLINE TO 2026 MILLION FROM 2209 MILLION IN THE SAME PERIOD AS THE COMPANY SHED OLDER HIGHMAINTENANCE EQUIPMENT THE TURNAROUND HAS PAID OFF HANDSOMELY BOTH FOR THE DISSIDENTS THEMSELVES AND FOR OTHER STOCKHOLDERS AS XTRA'S STOCK HAS MORE THAN TRIPLED CLOSING AT 9350 A SHARE YESTERDAY ON THE NEW YORK STOCK EXCHANGE UP FROM 26 JUST AFTER THE PROXY CONTEST IN MARCH 1990 WE'VE TAKEN A COMPANY WHOSE STOCK WASN'T GOING ANYWHERE AND WE'VE REALLY MADE IMPROVEMENTS IT FEELS GOOD SAYS LEWIS RUBIN XTRA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND ONE OF THE DISSIDENTS IN THE PROXY FIGHT THAT FEATURED LOTS OF MUDSLINGING FORMER MANAGEMENT FOR EXAMPLE REMINDED SHAREHOLDERS THAT THE LEADER OF THE DISSIDENTS MONEY MANAGER ROBERT GINTEL WAS SUSPENDED AND FINED BY THE SECURITIES AND EXCHANGE COMMISSION IN 1961 FOR INSIDER TRADING MR GINTEL NOW VICE CHAIRMAN OF XTRA COUNTERED IN A SUIT THAT THE THEN CHIEF EXECUTIVE IMPROPERLY BENEFITED BY SELLING ASSETS TO THE COMPANY AT AN INFLATED PRICE OTHERS AGREE THAT THE SUCCESS OF XTRA'S NEW MANAGEMENT IS RARE THERE ARE A LOT OF FINANCIAL WIZARDS WHO COME IN AND MESS THINGS UP SAYS JOHN WHITNEY A PROFESSOR OF MANAGEMENT AT COLUMBIA UNIVERSITY BUSINESS SCHOOL JUST FIXING THE BALANCE SHEET AND FINANCES ISN'T NEAR ENOUGH YOU STILL HAVE TO GO OUT AND FACE COMPETITION ONTHEJOB TRAINING FOR CEOS IS REALLY EXPENSIVE XTRA LEASES TRANSPORTATION EQUIPMENT SUCH AS CHASSIS OVERTHEROAD TRAILERS AND FREIGHT CONTAINERS CARRIED ON RAIL FLATCARS AND BARGES ITS CUSTOMERS ARE MOSTLY RAILROAD COMPANIES AND CONTRACT FREIGHT CARRIERS WHO USE THE EQUIPMENT AS AN ALTERNATIVE TO PURCHASING IT OR FOR SEASONAL OR GEOGRAPHIC SHORTAGES MUCH OF THE CREDIT FOR XTRA'S TURNAROUND GOES TO MR RUBIN AN INDUSTRY VETERAN WHO SUCCESSFULLY RAN TRANSPORTATION EQUIPMENT LEASING CONCERNS FLEXIVAN CORP IN THE EARLY 1980S AND GELCO CTI CONTAINER SERVICES INC A UNIT OF GELCO CORP THROUGH 1988 MR RUBIN WHO TOOK OVER THE REINS AS THE ECONOMY WAS STAGGERING AND SHIPPERS WERE CUTTING BACK ON EQUIPMENT USAGE IMMEDIATELY RECOGNIZED THE NEED TO PARE DOWN XTRA'S EXPENSES AND REDUCE DEBT TO CUT HIGH MAINTENANCE COSTS MR RUBIN SOLD 8000 OLDER TRAILERS OR ABOUT 10 OF XTRA'S FLEET WHILE THE OLD MANAGEMENT TEAM SPENT ALMOST 600 MILLION INVESTING IN NEW EQUIPMENT FROM 1987 TO 1989 MR RUBIN SLASHED CAPITAL EXPENDITURES TO 6 MILLION IN 1991 AND 37 MILLION IN 1992 CONSEQUENTLY ITS EQUIPMENT UTILIZATION RATE INCREASED TO 86 FROM 82 IN 1990 REDUCING SPENDING ON NEW EQUIPMENT ENABLED XTRA TO PAY OFF 200 MILLION IN LONGTERM DEBT THE COMPANY ALSO CUT ITS WORK FORCE BY 10 TO 650 AND WITH FEWER EMPLOYEES MOVED CORPORATE HEADQUARTERS FROM THE 28TH FLOOR OF A HIGHRISE WITH A VIEW OF BOSTON HARBOR TO MODEST NINTHFLOOR QUARTERS IN THE SAME BUILDING IT ELIMINATED FIRSTCLASS TRAVEL AND COUNTRY CLUB MEMBERSHIPS FOR SENIOR EXECUTIVES AND SOLD A CONDOMINIUM IN FLORIDA THAT WAS USED AMONG OTHER THINGS FOR VACATIONS BY DIRECTORS AND MANAGERS IT ALSO STOPPED SPONSORING A GOLF TOURNAMENT THE COMPANY HAD GOTTEN A LITTLE FAT AND LETHARGIC WE TOOK IT BACK TO BASICS SAYS MR RUBIN WITH OPERATIONAL COSTS UNDER CONTROL XTRA LATELY HAS TURNED ITS ATTENTION TO GROWING THE BUSINESS IN A MOVE TO FEND OFF THREE LARGE COMPETITORS AND DOUBLE ITS MARKET SHARE IN THE GROWING OVERTHEROAD TRAILER BUSINESS LAST OCTOBER XTRA ACQUIRED STRICK LEASE A UNIT OF CLOSELY HELD DISTRIBUTION INTERNATIONAL CORP OF FAIRLESS HILLS PA WHICH LEASES 25000 OVERTHEROAD TRAILERS NATIONWIDE NOW WITH A FLEET OF 53000 OVERTHEROAD TRAILERS WHICH SHOULD REPRESENT ABOUT 60 OF REVENUE IN FISCAL 1993 XTRA IS GAINING GROUND ON GENERAL ELECTRIC CAPITAL CORP WHOSE TRANSPORT INTERNATIONAL POOL INC UNIT IS BELIEVED TO BE THE NATION'S LARGEST LESSOR OF OVERTHEROAD TRAILERS LAST DECEMBER GENERAL ELECTRIC CAPITAL FOLLOWED XTRA'S MOVE AND ACQUIRED THE OVERTHEROAD TRAILER BUSINESS ABOUT 19000 TRAILERS OF THE LAST REMAINING MAJOR COMPETITOR TRANSAMERICA LEASING INC INCREASING THE SIZE OF TRANSPORT INTERNATIONAL'S OVERALL FLEET TO 62000 UNITS INDUSTRY ANALYSTS MAINTAIN THERE'S ROOM IN THE MARKET FOR BOTH OF THEM INDEED AS THE ECONOMY RECOVERS DEMAND IS GROWING AMONG SHIPPERS INTERESTED IN LEASING EQUIPMENT RATHER THAN BUYING EQUIPMENT AND INCURRING DEBT DURING THE UNCERTAIN TIMES OF COURSE IF THE RECOVERY FALTERS THE MOVE COULD BACKFIRE BECAUSE XTRA ASSUMED 250 MILLION IN DEBT IN BUYING STRICK LEASE A LOT OF OUR SUCCESS DEPENDS ON THE DOMESTIC ECONOMY CONCEDES MR RUBIN BUT MR RUBIN SAYS XTRA IS PREPARED TO CUT BACK ON CAPITAL SPENDING IF NEED BE XTRA'S NEW MANAGEMENT WHICH CRITICIZED FORMER MANAGEMENT FOR EXCESS PAY HASN'T BEEN EXACTLY STINGY WITH COMPENSATION ITSELF JUST PRIOR TO THE PROXY CONTEST THE DISSIDENT GROUP ATTACKED THE 909000 COMPENSATION OF FORMER CHIEF EXECUTIVE CHARLES KAYE WHICH HAD GROWN FROM 257000 IN 1979 WHILE MR RUBIN BEGAN HIS TENURE WITH A 211000 COMPENSATION PACKAGE HE RECEIVED 602000 IN FISCAL 1992 INCLUDING BONUSES XTRA ALSO PAID MR GINTEL WHO ACCUSED THE INCUMBENTS OF FREE SPENDING 14 MILLION FOR PROXYCONTEST EXPENSES IN 1991 THE FEE WAS MORE THAN DOUBLE THE 600000 ORIGINALLY ESTIMATED BY MR GINTEL AND THE INVESTMENT PARTNERSHIP HE USED TO SUPPORT HIS FIGHT MR RUBIN DEFENDS HIS SALARY CONTENDING THAT IT'S STILL SIGNIFICANTLY LESS THAN FORMER MANAGEMENT AND IS TIED TO XTRA'S STRONG PERFORMANCE HE ADDS THAT MR GINTEL'S FEE MERELY PAID FOR HIS ACTUAL COSTS NOT HIS TIME IN RELATIONSHIP TO WHAT SHAREHOLDERS GAINED 14 MILLION ISN'T A SIGNIFICANT NUMBER SAYS MR RUBIN 9303090025 930309 WHO'S NEWS WOLVERINE WORLD WIDE NAMES BLOOM CEO MATTHEWS AS CHAIRMAN ROCKFORD MICH WOLVERINE WORLD WIDE INC NAMED GEOFFREY B BLOOM PRESIDENT AND CHIEF OPERATING OFFICER TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AND PHILLIP D MATTHEWS AS ITS CHAIRMAN EFFECTIVE APRIL 27 THE TWO MEN SUCCEED THOMAS D GLEASON 57 YEARS OLD WHO IS RETIRING AS CHAIRMAN AND CHIEF EXECUTIVE AFTER TWO DECADES IN THE TOP POSITION AT THE SHOE MAKER MR GLEASON WILL CONTINUE TO SERVE AS A VICE CHAIRMAN OF WOLVERINE MR BLOOM 51 HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1987 PRIOR TO THAT HE WAS PRESIDENT AND CHIEF EXECUTIVE OF JAYMAR RUBY INC MR MATTHEWS 54 A DIRECTOR OF WOLVERINE SINCE 1981 CURRENTLY IS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE AND WILL CONTINUE IN THAT POSITION SEPARATELY TIMOTHY J O'DONOVAN 47 A COMPANY EXECUTIVE VICE PRESIDENT WAS NAMED TO THE BOARD EXPANDING IT TO 11 MEMBERS 9303090024 930309 NOTABLE & QUOTABLE ROBERT DRESING PRESIDENT OF THE CYSTIC FIBROSIS FOUNDATION IN DEFENSE OF DRUG COMPANIES IN TESTIMONY TO THE HOUSE SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT ON FEB 22 WHEN MY OWN SON ROB WAS DIAGNOSED WITH CF AT 18 MONTHS THE LIFE EXPECTANCY FOR SOMEONE WITH THIS DISEASE WAS THEN SIX YEARS HE IS 26 TODAY THE ONLY REASON HE HAS SURVIVED IS THE FACT THAT WE HAVE DEVELOPED DRUGS OVER THE LAST 20 YEARS TO CONTROL LUNG INFECTIONS WITHOUT THE INVESTMENT OF THE DRUG INDUSTRY MY CHILD AND OTHERS WOULD NOT BE ALIVE TODAY OUR FEAR IS THAT AS WE STRIVE TO CONTROL HEALTH CARE COSTS SOME WILL MAKE THE DRUG INDUSTRY INTO AN EASY TARGET BY USING THE DRUG INDUSTRY AS A SCAPEGOAT WE WILL BE SHOOTING OURSELVES IN THE FOOT STIFLING THE VERY INNOVATION AND DEVELOPMENT OF NEW PRODUCTS SO CRITICAL TO THE HEALTH OF MANY AMERICANS 9303090023 930309 LETTERS TO THE EDITORS LIFESAVING DEVICES LANGUISH AT THE FDA YOUR FEB 10 EDITORIAL KESSLER'S DEVICES ON THE BOTTLENECK IN FDA APPROVAL OF NEW MEDICAL DEVICES HAS BROUGHT TO LIGHT AN ENORMOUS PROBLEM AS A PRACTICING CARDIOLOGIST I BELIEVE THAT THE AMERICAN PUBLIC NEEDS TO UNDERSTAND IN DETAIL THE ENORMOUS MAGNITUDE OF THE PROBLEM THESE BUREAUCRATIC DELAYS HAVE CAUSED UNDER DR DAVID KESSLER'S MANAGEMENT THE FOOD AND DRUG ADMINISTRATION HAS BECOME PARALYZED WITH RESPECT TO THE APPROVAL OR DISAPPROVAL OF NEW DEVICES CURRENTLY DEVELOPMENT OF MEDICAL DEVICES IS AT A STANDSTILL IT'S A TRAGEDY THAT PEOPLE ARE UNABLE TO OBTAIN MANY LIFESAVING DEVICES THAT ARE WIDELY AVAILABLE IN EUROPE SOUTH AMERICA AND JAPAN AS A RESULT OF BUREAUCRATIC MISMANAGEMENT LENGTHY DELAYS AND LACK OF CLEAR GUIDELINES FROM THE FDA NO NEW CARDIOLOGY DEVICES HAVE BEEN APPROVED DURING THE PAST YEAR IN SPITE OF THE FACT THAT A PHYSICIAN'S ADVISORY PANEL HAS STRONGLY RECOMMENDED APPROVAL OF THE INTERVENTIONAL TECHNOLOGY ATHERECTOMY DEVICE THE COOK INTRACORONARY STENT AND THE HEART TECHNOLOGY ROTABLATOR THESE DEVICES ARE STILL NOWHERE NEAR APPROVAL MANY PATIENTS ARE BEING HARMED BECAUSE WE ARE UNABLE TO TREAT THEM WITH DEVICES THAT CAN BE POTENTIALLY LIFESAVING MANY MEDICAL DEVICE COMPANIES ARE NOW GOING OVERSEAS TO DEVELOP NEW AND BETTER DEVICES PRESIDENT CLINTON SAYS HE WANTS TO IMPROVE HEALTH CARE IN AMERICA AND CREATE GOOD NEW JOBS HIS ADMINISTRATION CAN GREATLY AID THE AMERICAN MEDICAL DEVICE INDUSTRY AND PROVIDE BETTER ACCESS TO LIFESAVING MEDICAL DEVICES BY INSISTING ON MORE RAPID DEVICE EVALUATION AND APPROVAL BY THE FDA 9303090022 930309 POLITICS & POLICY BANKERS FIGHT STUDENT LOAN OVERHAUL BUT PROPOSAL GAINS SUPPORT IN COLLEGES BY CATHY TROST STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN 100 BANKERS FLOCKED TO CAPITOL HILL LAST WEEK IN AN EFFORT TO COMBAT PRESIDENT CLINTON'S PLAN TO OVERHAUL THE GOVERNMENT'S STUDENT LOAN PROGRAM UNDER THE PLAN STUDENTS WOULD BE ABLE TO BYPASS BANKS AND BORROW DIRECTLY FROM THE GOVERNMENT WHILE BANKERS ARE UPSET THE IDEA IS GATHERING SUPPORT AMONG COLLEGES AND UNIVERSITIES AND IN CONGRESS THE EVIDENCE IS OVERWHELMING THAT THE FEDERAL GOVERNMENT WILL SAVE MONEY AND THAT WE'LL MAKE COLLEGE MORE ACCESSIBLE TO MORE PEOPLE AND REDUCE PAPERWORK MASSIVELY SAYS SEN PAUL SIMON AN ILLINOIS DEMOCRAT AND THE LEAD ARCHITECT OF THE DIRECT LENDING IDEA IN CONGRESS UNDER THE CURRENT GUARANTEED STUDENT LOAN SYSTEM THE GOVERNMENT PAYS BANKS FEES TO ISSUE LOANS AT LOW INTEREST RATES THEN PAYS THE INTEREST ON THE LOANS WHILE THE STUDENT IS IN SCHOOL IF A STUDENT LATER DEFAULTS THE GOVERNMENT PICKS UP THE TAB THE ADMINISTRATION'S PROPOSAL WHICH WOULD BE PHASED IN BY 1997 WOULD LET STUDENTS BORROW DIRECTLY FROM THE GOVERNMENT VIA THEIR COLLEGE FINANCIAL AID OFFICES THOUGH DETAILS ARE STILL BEING WORKED OUT STUDENTS COULD LIKELY PAY OFF THEIR LOANS AS A PERCENTAGE OF THEIR POSTCOLLEGE INCOME OR BY WORKING IN PUBLIC SERVICE JOBS FOR SEVERAL YEARS BEFORE DURING OR AFTER COLLEGE THE INTERNAL REVENUE SERVICE WOULD GET INVOLVED IN COLLECTING LOAN PAYMENTS SHARPLY REDUCING THE RISK OF DEFAULT THE EXISTING STUDENT LOAN PROGRAM WHICH MR CLINTON CALLS WILDLY EXPENSIVE COSTS THE FEDERAL GOVERNMENT ABOUT 5 BILLION A YEAR IN DEFAULTS AND ADMINISTRATIVE COSTS IT'S A FREE LUNCH FOR PEOPLE WHO'VE BEEN MAKING MONEY OFF THE PROGRAM FOR A LONG TIME SAYS REP ROBERT ANDREWS A NEW JERSEY DEMOCRAT CONGRESS HAS ALREADY APPROVED A PLAN TO TEST DIRECT LENDING AT SEVERAL HUNDRED SCHOOLS STARTING NEXT YEAR THE ADMINISTRATION WANTS TO DOUBLE FUNDING FOR THE DEMONSTRATION PROPOSAL TO ABOUT 1 BILLION AND CALLS FOR FULL IMPLEMENTATION OF A DIRECT LOAN PROGRAM BY THE END OF FISCAL 1997 OFFICIALS BACKED BY TWO REPORTS FROM THE GENERAL ACCOUNTING OFFICE PROJECT SAVINGS OF AS MUCH AS 13 BILLION THE FIRST YEAR OF FULL OPERATION CRITICS CONTEND STARTUP AND ADMINISTRATIVE COSTS COULD EAT UP SAVINGS AND SUGGEST THE GOVERNMENT MAY NOT BE AS EFFICIENT A LENDER AS PRIVATE SECTOR BANKS A RECENT CONGRESSIONAL RESEARCH SERVICE REPORT SAID THAT WHILE THE CURRENT PROGRAM IS INEFFICIENT IT CANNOT BE FIXED BY SIMPLE CONVERSION TO A DIRECT LOAN PROGRAM WHICH MIGHT ACTUALLY INCREASE BUDGET OUTLAYS BANKING INTERESTS AGREE THE PRESIDENT'S PLAN IS POLITICALLY CORRECT BUT ALSO FISCALLY INCORRECT SAYS DANIEL CHEEVER PRESIDENT OF AMERICAN STUDENT ASSOCIATION A PRIVATE LOAN GUARANTEE AGENCY IN RECENT YEARS LOANS HAVE BECOME A MUCH BIGGER SOURCE OF FEDERAL STUDENT AID THAN GRANTS ACCOUNTING FOR ABOUT 65 OF THE 21 BILLION IN TOTAL FEDERAL STUDENT AID IN FISCAL 1992 FIFTEEN YEARS AGO HALF OF FEDERAL STUDENT AID WAS IN THE FORM OF GRANTS COLLEGES HAVE HAD SOME EXPERIENCE WITH DIRECT GOVERNMENT STUDENT LOANS UNDER THE FEDERAL PERKINS LOAN PROGRAM A MUCH SMALLER PROGRAM THAT COLLEGES ADMINISTER AND PARTIALLY FUND BUT MANY COLLEGE ADMINISTRATORS SAY DIRECT LENDING COULD BE EVEN EASIER TO ADMINISTER BECAUSE THE GOVERNMENT NOT THE SCHOOLS WOULD BE RESPONSIBLE FOR LOAN SERVICING AND COLLECTION SOME ADMINISTRATORS SAY FINANCING REFORM WON'T SOLVE THE UNDERLYING PROBLEM OF THE HIGH COST OF EDUCATION DIRECT LENDING SAYS D BRUCE JOHNSTONE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK MAY MAKE BORROWING A LITTLE EASIER FOR THE STUDENT BUT NOT A DIME LESS COSTLY 9303090021 930309 TECHNOLOGY & HEALTH DU PONT TO SPEED UP PHASEOUT OF CFCS AS OZONE READINGS POST RECORD LOWS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DU PONT CO THE WORLD'S LARGEST MAKER OF OZONEEATING CHLOROFLUOROCARBONS SAID IT WILL GET OUT OF THE CFC BUSINESS IN THE US BY THE END OF 1994 ONE YEAR AHEAD OF SCHEDULE DU PONT SAID IT MOVED UP ITS US PHASEOUT OF CFCS PARTLY BECAUSE ATMOSPHERIC MEASUREMENTS CONTINUE TO CONFIRM THAT OZONE LOSSES WILL INCREASE ANOTHER REASON FOR THE MOVE THE WILMINGTON DEL CHEMICAL COMPANY SAID IS THE GROWING NUMBER OF CFC ALTERNATIVES MADE BY DU PONT AND OTHER CHEMICAL COMPANIES NOW ON THE MARKET THE WORLD METEOROLOGICAL ORGANIZATION A UNITED NATIONS AGENCY BASED IN GENEVA REPORTED FRIDAY THAT RECORDLOW LEVELS OF OZONE WERE REPORTED FOR THE SECOND YEAR IN A ROW DURING FEBRUARY OVER MUCH OF NORTHERN EUROPE AND CANADA OZONE LEVELS WERE MORE THAN 20 BELOW THE LONGTERM NORMAL VALUES OVER THE GREATER PART OF EUROPE FROM THE ATLANTIC TO THE URAL MOUNTAINS AND UP TO THE POLAR CIRCLE SAID DR RUMEN D BOJKOV UN SPECIAL ADVISOR FOR OZONE AND GLOBAL ENVIRONMENTAL ISSUES ENVIRONMENT CANADA AN AGENCY OF THE CANADIAN GOVERNMENT SAID THAT RECORDLOW OZONE LEVELS WERE REPORTED OVER TORONTO AND EDMONTON ALBERTA IN EARLY FEBRUARY THE OZONE READING OVER EDMONTON WHERE OZONE LEVELS WERE 25 BELOW PRE1980 NORMAL READINGS WAS THE LOWEST OZONE READING IN THE 30 YEARS CANADA HAS BEEN TRACKING SUCH DATA THE AGENCY SAID A DU PONT SPOKESWOMAN SAID THE COMPANY HAD PLANNED ITS PHASEOUT ANNOUNCEMENT PRIOR TO THE RELEASE OF THE WMO AND ENVIRONMENT CANADA DATA THESE LATEST MEASUREMENTS CONFIRM THAT THE COMPANY IS MAKING THE RIGHT DECISION TO ADVANCE THE PHASEOUT OF CFCS THE SPOKESWOMAN SAID OZONE IN THE STRATOSPHERE BLOCKS OUT MUCH OF THE HARMFUL ULTRAVIOLET RADIATION FROM THE SUN THAT WOULD OTHERWISE REACH THE EARTH'S SURFACE HEIGHTENED EXPOSURE TO UV RAYS INCREASES THE RISK OF SKIN CANCER IN HUMANS AND AT ELEVATED LEVELS IT CAN DAMAGE THE YIELDS OF SEVERAL CROPS REPORTS OF THINNING OZONE LEVELS OVER THE NORTHERN HEMISPHERE LAST YEAR PROMPTED MORE THAN 90 COUNTRIES INCLUDING THE US AND CANADA TO AGREE IN NOVEMBER TO ACCELERATE PLANS TO BAN THE PRODUCTION OF CFCS TO THE END OF 1995 THE UNSPONSORED MONTREAL PROTOCOL WHICH WAS AGREED TO BY MOST NATIONS IN 1987 SET THE INITIAL CFC BAN AT THE YEAR 2000 FROM A GLOBAL STANDPOINT DU PONT IS PLAYING CATCHUP WITH ITS EUROPEAN RIVALS THE MEMBER NATIONS OF THE EUROPEAN COMMUNITY LATE LAST YEAR ADOPTED A YEAREND 1994 TARGET DATE FOR BANNING CFC PRODUCTION BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC OR ICI AND GERMANY'S HOECHST AG AMONG OTHERS HAVE ALREADY ADOPTED THE 1994 DEADLINE SET BY THE EC ALLIEDSIGNAL INC ONE OF THE OTHER MAJOR CFC AND CFCALTERNATIVE PRODUCERS IN THE US SAID THAT NOT ENOUGH CFC SUBSTITUTES ARE AVAILABLE TO MEET CUSTOMERS' NEEDS THE MORRISTOWN NJ COMPANY SAID IT WILL CONTINUE PRODUCING CFCS UNTIL SUBSTITUTES ARE AVAILABLE OR UNTIL THE END OF 1995 WHICHEVER IS SOONER DU PONT AND ICI ARE THE LEADING PRODUCERS OF CFC ALTERNATIVES EACH COMPANY HAS INVESTED MORE THAN 400 MILLION IN DEVELOPING A RANGE OF PRODUCTS DESIGNED TO REPLACE THE DIFFERENT TYPES OF CFCS BOTH THE WMO AND ENVIRONMENT CANADA NOTED THAT CFCS ARE PROBABLY ONE OF SEVERAL REASONS FOR THE THINNING OZONE LAYER IN THE NORTHERN HEMISPHERE THIS WINTER TURBULENT WEATHER PATTERNS BRINGING IN OZONEPOOR AIR FROM OTHER REGIONS AND STRATOSPHERIC PARTICLES LINGERING FROM THE 1991 VOLCANIC EXPLOSION OF MT PINATUBO IN THE PHILIPPINES ALSO ARE LIKELY CULPRITS IN LOWERING READINGS THE AGENCIES SAID 9303090020 930309 CREDIT RATINGS MARTIN MARIETTA CORP BETHESDA MD STANDARD & POOR'S CORP SAID IT DOWNGRADED ITS RATING ON ABOUT 470 MILLION IN MARTIN MARIETTA SENIOR DEBT TO SINGLEA FROM SINGLEAPLUS AND IT AFFIRMED AN A1 RATING ON COMMERCIAL PAPER THE RATING COMPANY SAID THE CHANGE REFLECTS HIGHER RISK FROM MARTIN MARIETTA'S 305 BILLION PURCHASE OF GENERAL ELECTRIC CO'S AEROSPACE UNIT A TRANSACTION MOSTLY FINANCED WITH DEBT HOWEVER S&P SAID THAT IMPROVED COMPETITIVE PROFILE IS A MAJOR OFFSET TO ELEVATED FINANCIAL RISK ALTHOUGH DEFENSE MARKETS ARE WEAKENED BY GOVERNMENT BUDGET CUTS THE RATING COMPANY SAID THE COMBINED OPERATIONS OF THE TWO MILITARY CONTRACTORS CAN BRING GREATER OVERALL EFFICIENCY AND STRENGTHENED RETURNS 9303090019 930309 BURLINGTON NORTHERN REACHES ACCORD WITH UNION TO CUT LABOR COSTS IN NORTH BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL BURLINGTON NORTHERN INC THE NATION'S LARGEST RAILROAD REACHED A TENTATIVE ACCORD TO REDUCE LABOR COSTS ON THE NORTHERN ONETHIRD OF ITS RAIL SYSTEM POTENTIALLY CATCHING UP TO RIVALS THAT OPERATE FREIGHT TRAINS WITH SMALLER CREWS THE AGREEMENT IF RATIFIED BY AFFECTED MEMBERS OF THE UNITED TRANSPORTATION UNION WOULD LEAD TO WORKRULE CHANGES AND REDUCTIONS IN THE SIZE OF TRAIN CREWS BURLINGTON NORTHERN A FORT WORTH TEXAS RAIL HOLDING COMPANY REACHED A CREWREDUCTION AGREEMENT ON THE SOUTHERN TWOTHIRDS OF ITS RAIL SYSTEM IN 1991 BUT IT HAS STRUGGLED FOR MORE THAN A YEAR TO REACH A SIMILAR AGREEMENT ON ITS NORTHERN TIER WHICH EXTENDS FROM WASHINGTON STATE TO MINNESOTA ANALYSTS SAID THE AGREEMENT REPRESENTS A MAJOR BREAKTHROUGH BURLINGTON NORTHERN HAS SUFFERED A COST DISADVANTAGE COMPARED TO ITS WESTERN RAIL COMPETITORS AN ANTAGONISTIC POSTURE WITH ITS LABOR UNIONS AND A DRAIN ON MANAGEMENT TIME AND ENERGY SAID REMY FISHER A VICE PRESIDENT AT KEMPER FINANCIAL SERVICES THE ACCORD IS A VERY BIG PSYCHOLOGICAL BOOST AND AN IMMEDIATE FINANCIAL BENEFIT TO BURLINGTON NORTHERN SHE SAID IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BURLINGTON NORTHERN SHARES ROSE 75 CENTS TO 50625 BURLINGTON NORTHERN OFFICIALS DECLINED TO DISCUSS TERMS AND IMPLICATIONS OF THE ACCORD BUT IN RECENT WEEKS TOP OFFICIALS HAVE SAID CURRENT LABOR CONTRACTS ON THE NORTHERN TIER SADDLE THE RAILROAD WITH 1650 EXTRA CREW MEMBERS AND AN ADDITIONAL 100 MILLION A YEAR IN COSTS GERALD GRINSTEIN BURLINGTON NORTHERN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS MADE A CREW REDUCTION PACT A MAJOR PRIORITY IN A RECENT INTERVIEW MR GRINSTEIN SAID THE LARGER CREW SIZES ON THE NORTHERN TIER HAVE BEEN A BARRIER AND HURT US COMPETITIVELY IN BIDDING AGAINST OTHER RAILROADS FOR FREIGHT BUSINESS BURLINGTON NORTHERN SAID THE AGREEMENT CULMINATES TWO WEEKS OF INTENSE NEGOTIATIONS IN WASHINGTON DC THE RAILROAD AND THE UNION HAVE BEEN MEETING SINCE EARLY 1992 UNDER THE AUSPICES OF THE NATIONAL MEDIATION BOARD THE COMPANY SAID THE AGREEMENT ALLOWS FOR OPERATION OF THROUGH FREIGHT TRAINS ON ITS NORTHERN LINES WITH TWO PEOPLE A LOCOMOTIVE ENGINEER AND A CONDUCTOR CURRENTLY TRAINS ON THAT PART OF THE RAILROAD OPERATE WITH FOUR PEOPLE INCLUDING TWO BRAKEMEN BURLINGTON NORTHERN SAID EMPLOYEES AFFECTED BY CREW SIZE REDUCTIONS WILL QUALIFY FOR SEPARATION PAY AND OTHER FORMS OF PROTECTION INCLUDING CREATION OF RESERVE BOARDS THAT ALLOW SURPLUS CREWMEN PART OF THEIR PAY WHILE THEY WAIT TO BE CALLED BACK TO WORK BUT THE COMPANY DECLINED TO GIVE FURTHER DETAILS UNTIL THE AGREEMENT IS RATIFIED BY AFFECTED UNION MEMBERS WHICH THE COMPANY EXPECTS TO HAPPEN BY MAY 7 BURLINGTON NORTHERN WAS THE FIRST RAILROAD TO NEGOTIATE A CREW REDUCTION AGREEMENT IN 1991 FOLLOWING A FEDERAL LAW THAT CALLED FOR ARBITRATION TO SETTLE CREW SIZE DISPUTES BUT THE AGREEMENT WHICH COVERED THE RAILROAD'S SOUTHERN TWO THIRDS DIDN'T INCLUDE ITS NORTHERN LINES BECAUSE NEITHER THE RAILROAD NOR THE UNION HAD FILED NOTICES UNDER THE RAILWAY LABOR ACT SEEKING CHANGES IN WORKING CONDITIONS THE NORTHERN LINES ACCORD COULD LEAD TO A SWEETENING OF CONTRACT TERMS FOR UTU EMPLOYEES ON BURLINGTON NORTHERN'S SOUTHERN LINES ACCORDING TO UNION PRESIDENT G THOMAS DUBOSE A STANDBY AGREEMENT MAKES TRAIN CREW EMPLOYEES ON THE SOUTHERN PART ELIGIBLE FOR ANY BENEFITS ADOPTED BY THE NORTHERN LINES SOME ANALYSTS SAID IT'S UNLIKELY THAT BURLINGTON NORTHERN WILL BE ABLE TO RETAIN ALL THE POTENTIAL SAVINGS FROM THE NEW ACCORD THAT'S BECAUSE IT FACES INTENSE RATE PRESSURE FROM RIVAL RAILROADS AS COALHAULING CONTRACTS COME UP FOR RENEWAL 9303090018 930309 INTERNATIONAL JAPAN BUSINESS CONFIDENCE FALLS IN QUARTERLY POLL TANKAN SURVEY FINDS FIRMS ARE THE MOST PESSIMISTIC ON OUTLOOK SINCE 1976 BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE BUSINESS CONFIDENCE PLUNGED TO ITS LOWEST LEVEL IN NEARLY TWO DECADES THE BANK OF JAPAN SAID AND ECONOMISTS WARNED THE BUSINESS OUTLOOK MAY DARKEN AS COMPANIES STAGGER INTO THE FISCAL YEAR BEGINNING APRIL 1 THINGS ARE GOING TO GET WORSE BEFORE THEY GET BETTER SAID JAMES VESTAL AN ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD THE QUARTERLY SURVEY KNOWN AS THE TANKAN FOUND THAT JAPAN'S MAJOR MANUFACTURERS ARE THE MOST PESSIMISTIC ABOUT NEARTERM BUSINESS CONDITIONS THEY HAVE BEEN SINCE 1976 WHEN THE NATION GRAPPLED WITH AN UNEXPECTED GLOBAL OIL EMBARGO THE MOST RECENT TANKAN CONDUCTED IN FEBRUARY FOUND SHARP DETERIORATION IN SENTIMENT AMONG MAJOR MANUFACTURERS AS MEASURED BY THE SOCALLED DIFFUSION INDEX THAT GAUGE SANK TO MINUS 49 FROM MINUS 44 IN THE PREVIOUS TANKAN CONDUCTED THREE MONTHS EARLIER THE DIFFUSION INDEX FOR MAJOR NONMANUFACTURERS SLIPPED TO MINUS 33 FROM THE PREVIOUS SURVEY'S MINUS 27 THE SURVEY'S DIFFUSION INDEX IS CALCULATED BY SUBTRACTING THE PERCENTAGE OF COMPANIES THAT THINK BUSINESS CONDITIONS WILL IMPROVE FROM THE PERCENTAGE OF THOSE THAT BELIEVE THEY WILL DETERIORATE IN THE LATEST SURVEY 71 OF THE MAJOR MANUFACTURERS RESPONDED NEGATIVELY AND 22 ANSWERED POSITIVELY THE TANKAN WHICH GATHERS RESPONSES ON A QUARTERLY BASIS FROM MORE THAN 7000 COMPANIES REPRESENTING ALMOST ALL SECTORS OF THE ECONOMY IS REGARDED AS JAPAN'S MOST COMPREHENSIVE BUSINESS POLL THE PREVIOUS TANKAN HAD SUGGESTED THAT THE GLOOM AMONG JAPAN'S MAJOR COMPANIES MIGHT EASE SLIGHTLY BY FEBRUARY BUT THE LATEST SURVEY FOUND COMPANIES ARE STILL STRUGGLING TO REDUCE BLOATED INVENTORIES AND FEEL BURDENED BY EXCESS WORKERS ON THEIR PAYROLLS THE SURVEY ALSO FOUND THAT MAJOR CORPORATIONS PLAN TO CUT CAPITAL SPENDING 42 IN THE COMING FISCAL YEAR THE TANKAN INCLUDED ANOTHER POSITIVE FINDING FEWER COMPANIES REPORTED DIFFICULTY IN OBTAINING LOANS FROM COMMERCIAL BANKS ANALYSTS SAY THAT IS AN ENCOURAGING TREND THAT SHOULD CONTINUE AS THE EFFECTS OF FEBRUARY'S 075 PERCENTAGEPOINT REDUCTION IN THE DISCOUNT RATE THE FEE THE BANK OF JAPAN CHARGES ON LOANS TO COMMERCIAL BANKS WORKS ITS WAY THROUGH THE FINANCIAL SYSTEM THE DISCOUNT RATE HAS BEEN CHOPPED TO 25 MATCHING ITS RECORD LOW MASARU TAKAGI AN ECONOMIST AT THE RESEARCH AFFILIATE OF FUJI BANK LTD SAYS CORPORATE SENTIMENT SHOULD IMPROVE IN THE NEXT SURVEY IN MAY WE HAVE COME TO THE BOTTOM LINE HE SAID IN THE NEXT TANKAN WE SHOULD SEE SOME BRIGHTER FIGURES BUT EVEN MR TAKAGI WHO DESCRIBES HIMSELF AS AN OPTIMIST FEARS THE BUSINESS OUTLOOK COULD SOUR AGAIN IN THE ABSENCE OF BOLD FISCAL MOVES BY THE GOVERNMENT IN THE NEXT SEVERAL WEEKS WE NEED STRONG EXPANSIONARY POLICIES TO AVOID A DOUBLEDIP RECESSION HE WARNED IN THE NEXT FEW DAYS THE GOVERNMENT IS EXPECTED TO RELEASE FIGURES FOR GROSS NATIONAL PRODUCT THE VALUE OF ITS TOTAL OUTPUT OF GOODS AND SERVICES MANY ECONOMISTS BELIEVE THE ECONOMY CONTRACTED A SECOND CONSECUTIVE QUARTER IN THE THREE MONTHS ENDED DEC 31 9303090017 930309 BUSINESS BRIEF MICROTEL FRANCHISE & DEVELOPMENT HOTEL CONCERN TO BUY STOCK FROM ESTATE OF ITS EXCHIEF MICROTEL FRANCHISE & DEVELOPMENT CORP SAID IT AGREED TO BUY 550000 SHARES OF THE COMPANY'S COMMON STOCK AT 3 EACH FROM THE ESTATE OF ITS FORMER CHIEF EXECUTIVE OFFICER THE BUDGET HOTEL COMPANY ADDED THAT AN INSURANCE COMPANY HAS APPROVED A 11 MILLION PAYMENT TO MICROTEL UNDER A POLICY THAT COVERED LOREN G ANSLEY WHO IT SAID DIED IN DECEMBER OF A HEROINE OVERDOSE MICROTEL SAID IT WILL USE MOST OF THE MONEY FOR WORKING CAPITAL THE ROCHESTER NY CONCERN SAID IT WILL PAY FOR THE ANSLEY STOCK MAINLY BY ISSUING A 10YEAR CONVERTIBLE SUBORDINATED DEBENTURE THE DEBENTURE WILL CARRY AN ANNUAL INTEREST RATE OF 8 AND BE CONVERTIBLE AT 540 A SHARE MR ANSLEY'S ESTATE OWNS ABOUT 11 MILLION SHARES OF COMMON STOCK THE BOARD AUTHORIZED THE COMPANY TO BUY BACK SHARES IN THE OPEN MARKET TOO FROM TIME TO TIME 9303090016 930309 BUSINESS BRIEF SOUTHLAND CORP SAYS FOURTHQUARTER LOSS NARROWED SLIGHTLY DALLAS SOUTHLAND CORP CONTINUING ITS SLOW RECOVERY FROM BANKRUPTCY PROCEEDINGS POSTED A FOURTHQUARTER LOSS OF 294 MILLION OR SEVEN CENTS A SHARE A SLIGHT IMPROVEMENT FROM THE YEAREARLIER LOSS OF 342 MILLION OR EIGHT CENTS A SHARE BUT THE CONVENIENCESTORE CHAIN SAID OPERATING RESULTS SHOWED MORE SIGNIFICANT GAINS THANKS TO HIGHER PROFIT MARGINS ON GASOLINE SALES AND LOWER EXPENSES THE COMPANY NOTED THAT THE MOSTRECENT PERIOD INCLUDED AN UNUSUALLY LARGE PRETAX CHARGE OF 29 MILLION FOR DISCONTINUED OPERATIONS INCLUDING STORES CLOSED DURING 1992 STORES EXPECTED TO CLOSE THIS YEAR AND THE DISTRIBUTION AND FOOD PROCESSING BUSINESS WHICH WAS SOLD FOURTHQUARTER REVENUE FELL 10 TO 172 BILLION FROM 191 BILLION WHILE THAT REFLECTS IN PART THE CLOSING OF 260 OF THE COMPANY'S 7ELEVEN STORES SINCE 1991 THE COMPANY ALSO SAID SALES AT STORES OPEN FOR MORE THAN A YEAR DECLINED 4 THE COMPANY EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS IN EARLY 1991 SOUTHLAND BLAMED A STRATEGIC SHIFT AWAY FROM DISCOUNTING AND PROMOTING FOR THE REVENUE DECLINE THE COMPANY SAID ITS NEW STRATEGY ALSO PRODUCED AN INCREASE OF 088 IN MERCHANDISE GROSS PROFIT MARGIN DURING THE QUARTER FOR ALL OF 1992 SOUTHLAND POSTED A LOSS OF 1314 MILLION OR 32 CENTS A SHARE INCLUDING 97 MILLION IN PRETAX CHARGES RELATED TO BUSINESS REDUCTIONS THAT COMPARED WITH 1991 NET INCOME OF 825 MILLION OR 24 CENTS A SHARE AFTER A 1568 MILLION EXTRAORDINARY GAIN FROM RESTRUCTURING REVENUE DROPPED 74 TO 748 BILLION FROM 808 BILLION 9303090015 930309 YOUR MONEY MATTERS LIVING IN SIN TO CUT TAX BILL WOULD LOOK EVEN BETTER TO SOME UNDER CLINTON PLAN BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL MAYBE LIVING IN SIN ISN'T SO BAD AFTER ALL IN FACT SOME WORKING COUPLES PROBABLY CAN'T AFFORD NOT TO WHILE MOST PEOPLE REALIZE THAT MARRIED COUPLES PAY TAXES AT HIGHER RATES THAN SINGLE INDIVIDUALS THE SOCALLED MARRIAGE PENALTY SLAMS MANY TWOEARNER COUPLES WITH UNEXPECTED FORCE SOME LOWINCOME TAXPAYERS WHO MARRY CAN FIND THAT THEIR NEW COMBINED TAX LIABILITY INCLUDING SOCIAL SECURITY TAXES LEAPS TO MORE THAN 45 OF THEIR TAXABLE INCOME AND COUPLES WITH TWO HIGH EARNERS CAN PAY TENS OF THOUSANDS OF DOLLARS MORE THAN THEY WOULD OWE IF THEY WERE SINGLE MEANWHILE THE MARRIAGE PENALTY ACTUALLY TURNS INTO A TAX BREAK WORTH THOUSANDS OF DOLLARS FOR MANY WEALTHY MALES AND FOR SOCALLED TRADITIONAL FAMILIES IN WHICH ONE SPOUSE WORKS OUTSIDE THE HOUSE AND THE OTHER REMAINS AT HOME NOBODY REALLY PLANNED FOR IT TO TURN OUT LIKE THIS THERE WAS NO INTENTION TO CREATE A MARRIAGE PENALTY OR BONUS SAYS DANIEL HALPERIN FORMER DEPUTY ASSISTANT SECRETARY OF TAX POLICY AT THE US TREASURY WHO IS NOW A LAW PROFESSOR AT GEORGETOWN UNIVERSITY RATHER THE PENALTY CAME ABOUT AS LAWMAKERS SOUGHT TO EQUALIZE THE TAX LIABILITIES FACED BY SINGLE AND MARRIED TAXPAYERS THEIR EFFORTS WORKED IF MARRIED COUPLES HAD ONE WAGE EARNER BUT WHEN A COUPLE HAS TWO WAGE EARNERS THEY CAN END UP PAYING MORE THAN THEY WOULD TOGETHER IF THEY WERE SINGLE THIS FACT HASN'T CAUGHT THE ATTENTION OF LAWMAKERS AS MANY OF THEM TEND TO BE AMONG THE MINORITY OF AMERICAN FAMILIES WITH ONE WAGE EARNER SAYS ROBERT M SPECTOR MANAGER OF TECHNICAL SUPPORT AT IDS TAX & BUSINESS SERVICES IN MINNEAPOLIS BUT THAT MAY SOON CHANGE NOW WITH PRESIDENT CLINTON'S PLAN TO INCREASE THE TOP STATED BRACKET TO 36 FROM 31 AND TO ADD A SURCHARGE THAT WOULD BOOST THE TOP RATE FOR THE HIGHESTINCOME TAXPAYERS TO AROUND 40 THE DISCREPANCIES COULD WIDEN EVEN FURTHER CALCULATIONS PREPARED FOR THE WALL STREET JOURNAL BY KPMG PEAT MARWICK SHOW THAT THE MARRIAGE PENALTY HAS THE GREATEST IMPACT ON THE LOWEST WAGE EARNERS WITH CHILDREN IF THEY MARRY THEY CAN NO LONGER PAY AT THE MORE FAVORABLE HEADOFHOUSEHOLD RATE MORE IMPORTANT THEY LOSE SOME OR ALL OF THE VALUE OF THE EARNED INCOME CREDIT A CREDIT FOR LOWINCOME TAXPAYERS THAT PHASES OUT AT INCOMES OF 23050 FOR EXAMPLE UNDER CURRENT LAW A SINGLE MOTHER WITH TWO CHILDREN EARNING 12000 WOULD ACTUALLY GET A CHECK FROM THE GOVERNMENT FOR 593 ACCORDING TO PEAT MARWICK'S CALCULATIONS THAT'S BECAUSE SHE WOULD HAVE NO TAX LIABILITY AND WOULD QUALIFY FOR THE EARNED INCOME CREDIT A MAN WITH THE SAME INCOME AND ONE CHILD WOULD GET A CHECK FOR 238 BUT IF THEY MARRY PEAT MARWICK FIGURES THEIR COMBINED FEDERAL TAX LIABILITY INCOME TAX PLUS SOCIAL SECURITY TAX WOULD SOAR TO 2744 FROM A NEGATIVE 831 THUS THE PENALTY FOR FILING MARRIED WOULD BE A TOTAL OF 3575 THERE'S A HORRENDOUS PENALTY FOR THEM TO GET MARRIED SAYS MARK SPRINGER A PARTNER WITH PEAT MARWICK IN WASHINGTON HE NOTES THAT ALTHOUGH THEIR MARGINAL TAX RATE IS 15 THEIR EFFECTIVE TAX RATE WHAT THEY PAY ON THEIR TAXABLE INCOME JUMPS FROM ZERO TO 4536 OF THEIR TAXABLE INCOME OF 6050 HOW INDIVIDUALLY EACH PAID 918 IN SOCIAL SECURITY TAX BUT SOME OF THIS WAS REFUNDED TO THEM THANKS TO THE EARNED INCOME CREDIT HOWEVER WHEN MARRIED NONE OF THE SOCIAL SECURITY TAX IS REFUNDED TO THEM WHICH MEANS THEY PAY A TOTAL OF 1836 PLUS INCOME TAX OF 908 MR SPRINGER NOTES HOWEVER THAT THIS COUPLE WOULD HAVE ONE ADVANTAGE FILING JOINTLY THEY COULD MAKE USE OF THE CHILDCARE CREDIT WHICH NEITHER COULD USE WHEN THEY WERE SINGLE THE CHILDCARE CREDIT IS WORTHLESS TO LOWINCOME WAGE EARNERS SAYS MR SPRINGER IT'S A NONREFUNDABLE CREDIT WHICH MEANS YOU CAN USE IT ONLY IF YOU HAVE TAX LIABILITY MARRIED THEY HAVE A TAX LIABILITY SO COULD USE THE CHILDCARE CREDIT HOWEVER THIS WOULD SHRINK THEIR TAXES BY ONLY ABOUT 600 AND THEY WOULD HAVE TO QUADRUPLE THEIR CHILD CARE SPENDING TO GENERATE ENOUGH COSTS TO TRIGGER THE CREDIT MR SPRINGER SAYS THE NEXT GROUP OF TAXPAYERS MOST PENALIZED BY MARRIAGE IS COUPLES IN WHICH BOTH HAVE HEFTY INCOMES UNDER CURRENT LAW TWO INDIVIDUALS EACH EARNING 250000 WOULD PAY ADDITIONAL TAX OF 12000 TO 15000 IF THEY MARRIED PEAT MARWICK'S CALCULATIONS SHOW THE EXACT AMOUNT OF THE MARRIAGE PENALTY DEPENDS ON THE SIZE OF A COUPLE'S DEDUCTIONS AND WHETHER THEY HAVE CHILDREN IN GENERAL THE HIGHER THE TAX RATE AND THE HIGHER THE RESPECTIVE INCOMES THE BIGGER THE PENALTY THE PRESIDENT'S TAX PROPOSALS WHICH RAISE RATES AND ADD A SURTAX ON INCOME OVER 250000 COULD CAUSE THE MARRIAGE PENALTY TO NEARLY DOUBLE FOR HIGH EARNERS THE 500000 COUPLE WOULD SEE THEIR PENALTY LEAP 25000 TO 30000 OR SO PEAT MARWICK CALCULATES EVEN FOR PEOPLE EARNING TOO LITTLE TO BE AFFECTED BY MR CLINTON'S PROPOSED HIGHER TAX BRACKETS THE MARRIAGE PENALTY CAN STILL BE QUITE A BITE TWO CHILDLESS PEOPLE EACH EARNING 75000 PAY 4533 MORE AS A MARRIED COUPLE THAN THEY DO AS TWO SINGLE INDIVIDUALS BUT NOT ALL MARRIED COUPLES PAY A TAX PENALTY IN FACT THE TAX STRUCTURE BENEFITS SOCALLED TRADITIONAL FAMILIES IN WHICH ONE SPOUSE REMAINS AT HOME WHILE THE OTHER GOES OFF TO WORK ESPECIALLY FOR HIGH EARNERS WHILE A COUPLE WITH TWO KIDS AND ONE SALARY OF 40000 WOULD HAVE A BONUS OF ABOUT 465 PEAT MARWICK CALCULATES A FAMILY WITH ONE WAGE EARNER MAKING 170000 COULD HAVE A BONUS OF ABOUT 4000 AND THIS BONUS INCREASES AS INCOME RISES MR SPRINGER SAYS ONE REASON FOR THIS IS THAT SINGLE FILERS ENTER THE 31 BRACKET AT TAXABLE INCOME OF 53500 BUT TAXPAYERS WHO FILE JOINTLY ENTER THE 31 BRACKET AT 89150 ACCOUNTING PROFESSIONALS SAY THAT MOST WEALTHY MEN ARE MARRIED AND COMMONLY HAVE NONWORKING SPOUSES AS A RESULT THEY ARE THE CHIEF BENEFICIARIES OF THE MARRIAGE BONUS SAYS MR SPECTOR OF IDS SOME COUPLES CAN EXPERIENCE A SHIFT FROM PENALTY TO BONUS OR THE REVERSE IF THEIR CIRCUMSTANCES CHANGE DUE TO DIVORCE LOST JOBS RETIREMENT OR A CHANGE IN JOBS LAST YEAR FOR EXAMPLE AS A TWOEARNER COUPLE BILL AND HILLARY RODHAM CLINTON OWED TAXES OF 55284 INCURRING A MARRIAGE PENALTY OF BETWEEN 5400 AND 6500 ACCORDING TO MARY MALGOIRE A FINANCIAL ADVISER WITH MALGOIRE DRUCKER INC A FINANCIAL PLANNING FIRM IN BETHESDA MD IF THE CLINTONS HADN'T BEEN MARRIED MR CLINTON COULD HAVE FILED AS A HEAD OF HOUSEHOLD AND HILLARY RODHAM COULD HAVE FILED AS SINGLE THEIR COMBINED TOTAL TAX LIABILITY WOULD HAVE BEEN 48776 IF HILLARY RODHAM HAD FILED AS HEAD OF HOUSEHOLD AND MR CLINTON FILED SINGLE THEY WOULD HAVE OWED A TOTAL OF 49893 MS MALGOIRE CALCULATES THIS YEAR MR CLINTON GOES FROM BEING THE LOWER WAGE EARNER IN THE FAMILY UNIT TO THE SOLE EARNER HIS SALARY IS 200000 AND MS CLINTON HAS AN UNPAID GOVERNMENT POST AS A RESULT RATHER THAN PAYING A MARRIAGE PENALTY THEY WILL HAVE A BONUS OF SEVERAL THOUSAND DOLLARS MS MALGOIRE ESTIMATES PEOPLE IN OR NEARING RETIREMENT FACE OTHER FORMS OF THE MARRIAGE PENALTY THE TAX ON SOCIAL SECURITY BENEFITS KICKS IN WHEN INCOME FROM ALL SOURCES INCLUDING SOCIAL SECURITY REACHES 25000 FOR INDIVIDUALS AND 32000 FOR MARRIED COUPLES I'M IN THE WORST POSSIBLE CASE SAYS WILBUR DUBOIS 73 A RETIRED BOEING ENGINEER IN SEATTLE WHOSE WIFE WORKS AS A LIBRARIAN HIS WIFE'S INCOME INCREASES THE PROPORTION OF HIS SOCIAL SECURITY BENEFIT THAT IS TAXED ANOTHER MARRIAGE TAX WHAMMY THAT SLAMS PEOPLE NEAR RETIREMENT WHO ARE THINKING ABOUT GETTING MARRIED IS CAPITAL GAINS TREATMENT OF THE SALE OF THEIR HOME INDIVIDUALS AND COUPLES ARE ENTITLED TO A ONETIME EXCLUSION OF 125000 IN CAPITAL GAINS ON THE SALE OF A HOME IF ONE INDIVIDUAL HAS ALREADY TAKEN ADVANTAGE OF THE ONETIME EXCLUSION AND THE OTHER HASN'T THE SECOND PERSON WOULD LOSE THE ABILITY TO SHELTER 125000 IN CAPITAL GAINS MS MALGOIRE RECENTLY ADVISED A COUPLE IN THIS SITUATION HOWEVER ALTHOUGH THE WOMAN KNEW SHE WOULD LOSE HER ABILITY TO SHELTER THOUSANDS IN TAXES SHE STILL GOT MARRIED BEFORE HER HOME WAS SOLD THEY DIDN'T WANT TO WAIT EVEN THOUGH IT COST THEM MS MALGOIRE SAYS THE CLINTON PROPOSAL WOULD BOTH INCREASE THE MARRIAGE PENALTY ON WORKING COUPLES AND BOOST THE BONUS ON COUPLES WITH ONE WAGW EARNER THE TAX CALCULATIONS SHOWN HERE INCLUDE BOTH FEDERAL INCOME TAXES AND SOCIAL SECURITY TAX WHO THEY ARE EACH EARNS 145000 TWO CHILDREN 9303090014 930309 GOLDMAN UNIT SUSPENDS ITS BOND CHIEF BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLDMAN SACHS & CO SUSPENDED THE HEAD OF THE 14 BILLION FIXEDINCOME PORTFOLIO OF ITS ASSET MANAGEMENT UNIT AFTER FINDING ALLEGED BOOKKEEPING IRREGULARITIES ACCORDING TO PEOPLE CLOSE TO THE FIRM MICHAEL L SMIRLOCK CHIEF INVESTMENT OFFICER FOR FIXED INCOME AT GOLDMAN SACHS ASSET MANAGEMENT WHICH MANAGES ABOUT 45 BILLION FOR INSTITUTIONAL INVESTORS AND WEALTHY INDIVIDUALS WAS SUSPENDED WITHIN THE PAST FEW DAYS THE PEOPLE SAID MR SMIRLOCK 36 IS A MORTGAGE SECURITIES EXPERT WHO BECAME A GOLDMAN PARTNER IN OCTOBER HE WAS A PROFESSOR AT THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA BEFORE JOINING GOLDMAN IN 1990 MR SMIRLOCK DIDN'T RETURN PHONE CALLS TO HIS OFFICE THE NUMBER AT HIS PHILADELPHIA HOME IS UNLISTED OFFICIALS AT GOLDMAN DECLINED TO COMMENT HOWEVER THE FIRM IS UNDERSTOOD TO HAVE NOTIFIED ITS EMPLOYEES CLIENTS AND THE SECURITIES AND EXCHANGE COMMISSION THE PEOPLE CLOSE TO GOLDMAN SAID AN INTERNAL PROBE FOUND CERTAIN IRREGULARITIES IN THE TIMELY ENTRY OF RELATIVELY LONGERTERM TAXABLE FIXEDINCOME SECURITIES AND THEIR ALLOCATION AMONG GSAM'S CLIENT ACCOUNTS THE ALLEGED IRREGULARITIES INVOLVED LATE ENTRY AND ALLOCATION OF TRADES THEY SAID TWO ACCOUNTS OF THE EPISODE WERE CIRCULATING YESTERDAY ONE WALL STREET EXECUTIVE SAID MR SMIRLOCK WAS TRYING TO MAKE UNDERPERFORMING ASSETS APPEAR TO BE PERFORMING BETTER BY MOVING ASSETS AROUND AMONG ACCOUNTS HE SAID THE IRREGULARITIES BEGAN IN JANUARY ANOTHER PERSON WHO HEARD AN ACCOUNT OF THE SUSPENSION SAID MR SMIRLOCK WAS FAVORING SOME CLIENTS IN THE ALLOCATION OF PROFITS THE PEOPLE CLOSE TO GOLDMAN COULDN'T CONFIRM EITHER VERSION THOSE PEOPLE SAID THE IMPACT ON CLIENT PROFITS WAS RELATIVELY SLIGHT PERHAPS ONLY A FEW MILLION DOLLARS AND INVOLVED DELAYS OF ONLY A FEW DAYS IN ENTERING TRADES BUT THEY SAID THAT BECAUSE THE DELAYS INVOLVED MORE THAN ONE ACCOUNT THEY APPEARED TO BE A SERIOUS VIOLATION OF POLICY AS A RESULT THEY SAID MR SMIRLOCK ISN'T EXPECTED TO RETURN TO THE FIRM THE PEOPLE CLOSE TO GOLDMAN WOULDN'T SAY HOW THE ALLEGED IRREGULARITIES CAME TO LIGHT INTERNALLY NOR WOULD THEY SAY IF THE IRREGULARITIES MIGHT HAVE BEEN RELATED A RECENT BONDMARKET RALLY OR THE FACT THAT SOME MORTGAGEBACKED SECURITIES HAVE UNDERPERFORMED THE BOND MARKET GOLDMAN WILL REIMBURSE CLIENTS WHO HAVE SUFFERED LOSSES AS A RESULT OF ANY IRREGULARITIES THE PEOPLE SAID GOLDMAN IS HIRING A NEW CHIEF INVESTMENT OFFICER FOR THE FIXEDINCOME PORTFOLIO CHARMIN AMOSSAVARRAHMANI WHO HAS BEEN WORKING AT FIDELITY INVESTMENTS IN BOSTON GOLDMAN HAD ORIGINALLY PLANNED FOR HER TO SERVE AS THE UNIT'S COCHIEF INVESTMENT OFFICER FOR FIXED INCOME 9303090013 930309 50OFF STORES REPORTS PROFIT DECLINE OF 69 FOR FISCAL 4TH PERIOD SAN ANTONIO 50OFF STORES INC SLOWED BY LOWERTHANEXPECTED SALES POSTED A 69 DECLINE IN NET INCOME FOR THE FOURTH QUARTER ENDED JAN 29 THE DISCOUNT RETAILER ALSO SAID NET SALES FOR THE FOUR WEEKS ENDED FEB 26 INCREASED 14 TO 106 MILLION FROM A YEAR AGO THANKS MOSTLY TO ITS AGGRESSIVE EXPANSION PROGRAM BUT SALES AT STORES OPEN FOR MORE THAN A YEAR DECLINED 18 IN THE FOURTH QUARTER NET FELL TO 810000 OR EIGHT CENTS A SHARE FROM 26 MILLION OR 24 CENTS A SHARE A YEAR EARLIER PERSHARE AMOUNTS WERE ADJUSTED FOR A THREEFORTWO STOCK DIVIDEND PAID IN THE THIRD QUARTER OF 1992 WHILE SALES ROSE 36 TO 617 MILLION FROM 455 MILLION THE COMPANY SAID STRICTER DUTY ENFORCEMENT BY THE MEXICAN GOVERNMENT ALONG THE TEXAS BORDER INITIATED IN THE QUARTER CONTINUES TO NEGATIVELY AFFECT SALES AT 10 OF ITS 98 STORES THE RESULTS DISAPPOINTED ANALYSTS WHO HAD ESTIMATED EARNINGS OF 10 TO 13 CENTS A SHARE I THINK THE EXPENSES GOT OUT OF HAND FROM THE STOREOPENING PROGRAM SAID PHILIP ABBENHAUS AN ANALYST AT AG EDWARDS IN ST LOUIS THE COMPANY ADDED 32 NEW STORES LAST YEAR THE COMPANY'S STOCK CLOSED AT 11 DOWN 50 CENTS IN HEAVY OVERTHECOUNTER TRADING YESTERDAY FOR THE FISCAL YEAR 50OFF'S PROFIT FELL TO 48 MILLION OR 45 CENTS A SHARE FROM 65 MILLION OR 63 CENTS A SHARE IN FISCAL 1991 SALES CLIMBED 39 TO 181 MILLION FROM 130 MILLION THE COMPANY SAID IT PLANS TO OPEN 32 MORE NEW STORES THIS YEAR DENNIS TELZROW AN ANALYST AT THE PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS SAID HE EXPECTS THE COMPANY WILL PROCEED MORE CAUTIOUSLY WITH ITS COMING EXPANSION AND MAY REDUCE THE PROGRAM IF ECONOMIC CONDITIONS CAN'T SUPPORT IT 9303090012 930309 ADVANCED MEDICAL'S PRESIDENT RESIGNS 4THPERIOD NET POSTED SAN DIEGO ADVANCED MEDICAL INC ANNOUNCED CHANGES IN TOP OFFICERS SAID IT EXPECTS TO TAKE A 15 MILLION PRETAX FIRSTQUARTER CHARGE FOR CERTAIN COSTCUTTING STEPS AND REPORTED FOURTHQUARTER NET INCOME OF 25 MILLION COMPARED WITH A YEAREARLIER LOSS THE COMPANY WHOSE MAIN OPERATING UNIT IMED CORP IS A MAJOR PRODUCER OF MEDICAL INTRAVENOUS EQUIPMENT SAID HENRY GREEN WHO WAS PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED THOSE POSTS AND HAS BEEN SUCCEEDED TEMPORARILY BY STANLEY S ANDERS III WHO RETAINS EARLIER RESPONSIBILITIES AS CHIEF FINANCIAL OFFICER ADVANCED MEDICAL SAID MR GREEN WILL REMAIN A DIRECTOR AND A CONSULTANT TO THE COMPANY MR GREEN SAID HE RESIGNED TO SAVE THE COMPANY MONEY TO ELIMINATE DUPLICATION IN MANAGEMENT OF THE PARENT AND THE UNIT ADVANCED MEDICAL ALSO SAID JEFFRY M PICOWER WAS ELECTED TO THE BOARD AND NAMED A COCHAIRMAN WITH RICHARD D PROPPER WHO HAS BEEN THE COMPANY'S CHAIRMAN MR PICOWER WHO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MONROE SYSTEMS FOR BUSINESS INC HAD HELD THE SAME POSITION IN 1988 AND 1989 WITH A PREDECESSOR COMPANY OF ADVANCED MEDICAL THE COMPANY SAID ADVANCED MEDICAL SAID IT EXPECTS TO TAKE ITS 15 MILLION PRETAX CHARGE IN CONNECTION WITH STEPS THAT THE COMPANY BELIEVES WILL SAVE ABOUT 3 MILLION IN ANNUAL EXPENSES COMPARED WITH LAST YEAR THE COMPANY SAID ITS FOURTHQUARTER NET INCOME EQUALED ABOUT 14 CENTS A SHARE THE NET LOSS IN THE 1991 FOURTH QUARTER TOTALED 11 MILLION OR 12 CENTS A SHARE INCLUDING 12 MILLION IN ONETIME CHARGES FOR THE EARLY EXTINGUISHMENT OF DEBT REVENUE ROSE 13 TO 409 MILLION FROM 364 MILLION 9303090011 930309 BUSINESS BRIEF NORTHERN TELECOM LTD TURKEY CLEARS EXPANSION OF STAKE IN JOINT VENTURE NORTHERN TELECOM LTD SAID TURKEY HAS FORMALLY ACCEPTED ITS OFFER TO PURCHASE AN ADDITIONAL 20 STAKE IN NORTHERN ELECTRIC TELEKOMUNIKASYON AS OR NETAS ITS JOINT VENTURE COMPANY IN TURKEY THE TORONTOBASED TELECOMMUNICATIONS EQUIPMENT COMPANY SAID THE PURCE WILL RAISE ITS STAKE IN NETAS TO 51 TERMS OF THE PURCHASE WEREN'T DISCLOSED THE COMPANY SAID NETAS EMPLOYS 2000 PEOPLE IN TURKEY INCLUDING ABOUT 250 INVOLVED IN RESEARCH AND DEVELOPMENT AND HAS THE LARGEST PRIVATE RESEARCH AND DEVELOPMENT FACILITY IN TURKEY IT SAID THAT IN ADDITION TO ADAPTING NORTHERN TELECOM'S TECHNOLOGY TO THE LOCAL MARKET NETAS ALSO DESIGNS ITS OWN PRODUCTS 9303090010 930309 ABREAST OF THE MARKET INDUSTRIAL AVERAGE SURGES 6484 TO SET A RECORD OF 346942 POINTS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS BARRELED TO RECORD HIGHS AS INVESTORS RESPONDED BULLISHLY TO NEW SIGNS OF A CREDIBLE DEFICITREDUCTION PLAN THE SHIFT IN SENTIMENT WAS SO PERVASIVE THAT MANY PORTFOLIO MANAGERS FLOCKED TO STOCKS FLEEING SHORTTERM NOTES AND BONDS WHICH HAVE ALREADY RALLIED SHARPLY ON THE PROSPECT OF A NARROWER BUDGET DEFICIT THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 6484 POINTS OR 190 TO 346942 CONVINCINGLY SMASHING THROUGH ITS FEB 5 RECORD OF 344214 STANDARD & POOR'S 500STOCK INDEX JUMPED 860 POINTS OR 193 TO 45471 SURPASSING ITS OLD RECORD OF 44956 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LEAPED 416 OR 169 TO 25015 ALSO A RECORD VOLUME ON THE BIG BOARD WAS HEAVY WITH 274560000 SHARES CHANGING HANDS UP FROM FRIDAY'S 247130000 SHARES ADVANCING ISSUES TROUNCED DECLINERS 1497 TO 506 ANALYSTS SAID STOCKS OPENED ON A STRONG NOTE LARGELY IN RESPONSE TO NEWS THAT DEMOCRATS HAVE TENTATIVELY AGREED ON ADDITIONAL SPENDING CUTS OF AS MUCH AS 55 BILLION OVER FIVE YEARS TO ENABLE PRESIDENT CLINTON'S BUDGET PROPOSAL TO MOVE FORWARD IN CONGRESS THIS WEEK YOU ARE STARTING TO SEE SENTIMENT IN THE STOCK MARKET SHIFT SAID GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG INVESTORS ARE MORE COMFORTABLE THAT WHAT YOU ARE GOING TO SEE OUT OF WASHINGTON IS NOT GOING TO BE TAX AND SPEND BUT REAL DEFICIT REDUCTION A RALLY IN THE JAPANESE STOCK MARKET AND A CUT IN GERMAN INTEREST RATES FRIDAY ALSO PAVED THE WAY FOR GAINS IN US STOCK PRICES ANALYSTS SAID IN ADDITION STOCKS WERE BOOSTED BY MAJOR ASSET ALLOCATION SHIFTS BY BIG MONEY MANAGERS WHO THINK THE RALLY IN BONDS MAY BE ENDING AND ARE REDEPLOYING MONEY INTO THE STOCK MARKET THIS RALLY HAS BEEN DRIVEN BY THE ASSET ALLOCATIONTYPE ACTION AND THE ARBITRAGE PROGRAMS SAID DENNIS JARRETT STOCK MARKET ANALYST AT KIDDER PEABODY THIS ISN'T A MID TO SMALLCAP RALLY BUT A ROTATION TO THE REAL BIGGIES A NUMBER OF BLUECHIP STOCKS LED YESTERDAY'S BROAD ADVANCE AMONG THEM WERE AMERICAN TELEPHONE & TELEGRAPH WHICH SURGED 2 1/4 TO 58 3/4 MINNESOTA MINING & MANUFACTURING WHICH SOARED 2 3/8 TO 109 3/8 AND DU PONT WHICH ROSE 2 TO 48 3/4 ONE OLD STOCK MARKET LEADER INTERNATIONAL BUSINESS MACHINES ALSO CLIMBED BUT TO A MUCH LESSER EXTENT IBM ADDED 7/8 TO 56 1/8 STOCKS POWERED HIGHER THROUGHOUT THE DAY AND CONTINUED TO ADVANCE EVEN THOUGH THE NEW YORK STOCK EXCHANGE'S DOWNTICK RULE WENT INTO EFFECT AT 330 PM EST THIS RULE DESIGNED TO REIN IN A MARKET SURGE PROHIBITS PROGRAM TRADERS FROM BUYING THE STOCKS UNDERLYING STOCKINDEX FUTURES EXCEPT AT LOWER PRICES THAN THE IMMEDIATELY PRECEDING TRADES MS DUDACK OF SG WARBURG SAID SHE EXPECTS STOCK PRICES TO ADVANCE IN THE COMING MONTHS WITH THE DOW JONES INDUSTRIALS POSSIBLY MOVING AS HIGH AS 3750 SHE NOTED THAT THE DOW JONES UTILITY AVERAGE WHICH SHE CONSIDERS A LEADING INDICATOR OF INTEREST RATES AND STOCK PRICES CAME CLOSE TO BREAKING ITS RECORD YESTERDAY RISING 257 TO 24130 WHENEVER THE UTILITY AVERAGE SETS A HIGH THE STOCK MARKET IS ABOUT FIVE MONTHS AWAY FROM A SIGNIFICANT MARKET PEAK SHE SAYS MEANWHILE THE FLOW OF CASH INTO STOCK MUTUAL FUNDS WHICH HAS KEPT THE STOCK MARKET AFLOAT THIS YEAR APPEARS TO BE STRONG MICHAEL HINES SENIOR VICE PRESIDENT OF MARKETING AT FIDELITY INVESTMENTS THE BOSTON MUTUAL FUND SAID A STUDY DONE FOR THE FUND SHOWED THAT MUTUAL FUND OWNERS' NET INTENTION TO PURCHASE STOCK FUNDS WAS AT 55 IN FEBRUARY THE HIGHEST LEVEL IN THREE YEARS THE STUDY SHOWS THAT THERE IS A STRONG INTENTION OVER THE NEXT THREE MONTHS FOR AMERICANS TO CONTINUE THEIR ENTHUSIASM FOR STOCK FUNDS SAID MR HINES ADDING THAT WHILE STOCK FUND SALES AT FIDELITY WERE OFF SLIGHTLY IN FEBRUARY FROM JANUARY THEY APPEAR TO BE PICKING UP SO FAR THIS MONTH THE BIGGEST GAINERS IN YESTERDAY'S STOCK MARKET ADVANCE WERE CYCLICAL STOCKS A MORGAN STANLEY INDEX OF THESE STOCKS ROSE 586 TO 26568 WHILE AN INDEX OF CONSUMER STOCKS GAINED 443 TO 20314 INTERNATIONAL PAPER JUMPED 2 7/8 TO 66 5/8 GEORGIAPACIFIC LEAPT 3 TO 69 DOW CHEMICAL RALLIED 2 TO 57 1/2 AND ALUMINUM CO OF AMERICA GAINED 2 1/8 TO 72 DRUG STOCKS RALLIED BUT TOBACCO STOCKS CONTINUED TO GET CLOBBERED ON FEARS THAT PRESIDENT CLINTON WILL RAISE TAXES ON TOBACCO TO PAY FOR A HEALTHCARE REFORM PLAN PHILIP MORRIS FELL 1 TO 63 5/8 AND RJR NABISCO SLIPPED 1/4 TO 8 1/8 COMPAQ ROSE 3 7/8 TO 48 3/8 THE COMPUTER MAKER SAID IT HAS CUT PRICES ON ITS DESKTOP MODELS AS MUCH AS 15 IT ALSO SLASHED PRICES ON NOTEBOOK COMPUTERS AND PRINTERS SPRINT GAINED 1 5/8 TO 30 7/8 THE TELEPHONE COMPANY'S 285 BILLION MERGER WITH CENTEL IS EXPECTED TO CLOSE TODAY CROWN CRAFTS LOST 3 1/4 TO 15 5/8 THE COMPANY SAID IT EXPECTS FOURTHQUARTER NET INCOME TO BE ABOUT EQUAL TO YEAREARLIER 14 MILLION FEDERATED DEPARTMENT STORES CLIMBED 1 3/8 TO 21 3/8 THE RETAILER SAID IT SEES SUSTAINED EARNINGS GROWTH AND CONTINUED IMPROVEMENT IN ITS BUSINESS IN 1993 TAKING ADVANTAGE OF THE STRONG MARKET CONDITIONS PAYLESS CASHWAYS' 28 MILLIONSHARE OFFERING WAS PRICED AT 1275 APIECE AFTER THE MARKET CLOSE THE INITIAL PUBLIC OFFERING OF THE SPECIALTY RETAILER IS BEING UNDERWRITTEN BY GOLDMAN SACHS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 293 TO 41673 THERE WERE 330 ADVANCERS AND 249 DECLINERS 9303090009 930309 BUSINESS BRIEF COLUMBIA HOSPITAL CORP PROFIT MORE THAN DOUBLED TO 99 MILLION IN 4TH PERIOD COLUMBIA HOSPITAL CORP SAID FOURTHQUARTER NET MORE THAN DOUBLED ANALYSTS SAID THE IMPROVED RESULTS DEMONSTRATE THAT ITS STRATEGY OF DEVELOPING NETWORKS IN SPECIFIC URBAN MARKETS IS WORKING THE FORT WORTH TEXAS HOSPITAL OPERATOR POSTED NET OF 99 MILLION OR 38 CENTS A SHARE UP FROM 41 MILLION OR 22 CENTS A SHARE A YEAR EARLIER PERSHARE RESULTS REFLECT A 40 RISE IN SHARES OUTSTANDING REVENUE ROSE 77 TO 2428 MILLION FROM 1372 MILLION FOLLOWING ITS JULY ACQUISITION OF BASIC AMERICAN MEDICAL INC COLUMBIA HAD 22 HOSPITALS IN OPERATION DURING THE 1992 FOURTH QUARTER COMPARED WITH 12 HOSPITALS A YEAR EARLIER THE RESULTS MET ANALYSTS' EXPECTATIONS THE COMPANY'S STOCK ROSE 1 A SHARE TO 20 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY HAS BEEN EXPANDING BY ACQUIRING TROUBLED HOSPITALS AND CONSOLIDATING THEM TO REDUCE COSTS AND INCREASE OCCUPANCY RATES NET FOR THE YEAR INCREASED 70 TO 254 MILLION OR 116 A SHARE FROM 149 MILLION OR 90 CENTS A SHARE PERSHARE RESULTS REFLECT A 33 INCREASE IN SHARES OUTSTANDING REVENUE GREW 64 TO 8193 MILLION FROM 4994 MILLION 9303090008 930309 MARKETING & MEDIA QVC EARNINGS MORE THAN DOUBLED IN FISCAL 4TH PERIOD BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL QVC NETWORK INC SAID ITS NET INCOME MORE THAN DOUBLED IN THE FISCAL FOURTH QUARTER TO 189 MILLION SENDING THE TV SHOPPING CHANNEL'S STOCK SOARING 5 TO 5575 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY QVC BASED IN WEST CHESTER PA IS CONTROLLED BY A PARTNERSHIP CONSISTING OF LIBERTY MEDIA CORP WHICH IS A SPINOFF OF TELECOMMUNICATIONS INC COMCAST CORP AND RECENTLY NAMED CHAIRMAN BARRY DILLER REVENUE FOR THE QUARTER ENDED JAN 31 JUMPED 21 TO 3418 MILLION FROM 2817 MILLION A YEAR EARLIER THE COMPANY CITED STRONG OPERATING PERFORMANCE AND A HEALTHY RETAIL ENVIRONMENT AS REASONS FOR THE ROBUST RESULTS THE APPOINTMENT OF MR DILLER THE FORMER FOX INC CHAIRMAN WHO TOOK ON HIS NEW POST IN MIDJANUARY IS A LIKELY MAJOR FACTOR IN THE COMPANY'S SURGING STOCK PRICE QVC SHARES HAVE RISEN 50 IN VALUE SINCE THE MIDDECEMBER ANNOUNCEMENT THAT MR DILLER WOULD ACQUIRE A STAKE AND JOIN THE COMPANY QVC'S NET OF 189 MILLION OR 42 CENTS A SHARE WAS UP FROM YEAREARLIER EARNINGS OF 9 MILLION OR 25 CENTS A SHARE FOR THE YEAR QVC POSTED NET INCOME OF 551 MILLION OR 129 A SHARE ON REVENUE OF 107 BILLION COMPARED WITH YEAREARLIER NET INCOME OF 196 MILLION OR 61 CENTS A SHARE ON REVENUE OF 9218 MILLION REVENUE UP 21 IS A BIG SURPRISE SAID CRAIG BIBB AN ANALYST WITH PAINEWEBBER THIS IS JUST WHETTING PEOPLE'S APPETITE FOR TAKING TV SHOPPING SERIOUSLY MR BIBB SAID THE COMPANY'S CORE BUSINESS REMAINS STRONG FOR THE QUARTER OPERATING EARNINGS JUMPED 36 THE AVERAGE NUMBER OF HOMES REACHED ROSE BY ABOUT 9 AND THE NUMBER OF REPEATBUYERS IS HOLDING STEADY AT ABOUT 60 ABOVE YEAREARLIER FIGURES QVC CURRENTLY REACHES MORE THAN 44 MILLION CABLE HOMES AND THREE MILLION HOMES WITH SATELLITE DISHES QVC REPORTED AN EXTRAORDINARY CHARGE OF 15 MILLION IN FISCAL 1993 AND 21 MILLION IN FISCAL 1992 RESULTING FROM THE WRITEOFF OF DEBT PLACEMENT FEES ASSOCIATED WITH ITS PREPAYMENT OF LONGTERM DEBT THE COMPANY ALSO SAID IT HAD REDUCED ITS ANNUAL INTEREST EXPENSE TO 95 MILLION IN FISCAL 1993 COMPARED WITH 315 MILLION IN FISCAL 1992 INDUSTRY ANALYSTS SPECULATE THAT LIBERTY MEDIA NOW IN CONTROL OF QVC AND ITS RIVAL HOME SHOPPING NETWORK WILL SEEK TO MERGE THE TWO ENTITIES BUT LIBERTY OFFICIALS HAVE REPEATEDLY DENIED ANY SUCH PLANS 9303090007 930309 BUSINESS BRIEF SPRINT CORP CONCERN WINS GSA CONTRACT VALUED AS HIGH AS 15 MILLION SPRINT CORP SAID IT RECEIVED A CONTRACT FROM THE US GENERAL SERVICES ADMINISTRATION TO PROVIDE TELEPHONE SERVICES FOR USERS WITH SPEECH AND HEARING IMPAIRMENTS THE GSA'S INFORMATION RESOURCES MANAGEMENT SERVICE AWARDED TO SPRINT A ONEYEAR CONTRACT WITH THREE ONEYEAR RENEWAL OPTIONS THE CONTRACT IS VALUED AT A MAXIMUM 15 MILLION THE SOCALLED FEDERAL INFORMATION RELAY SERVICE ALLOWS CALLERS WITH SPEECH OR HEARING IMPAIRMENTS TO USE A TELEPHONE KEYBOARD AND DISPLAY SCREEN TO MAKE TELEPHONE CALLS THROUGH AN INTERMEDIARY WHO COMMUNICATES THEIR MESSAGES TO INDIVIDUALS WITH NORMAL HEARING USING STANDARD TELEPHONES THE SERVICE EXPECTED TO BEGIN APRIL 1 WILL BE AVAILABLE TO FEDERAL EMPLOYEES AND MEMBERS OF THE PUBLIC SEEKING INFORMATION FROM FEDERAL AGENCIES 9303090006 930309 INTERNATIONAL BRIEF PORSCHE AG CAR MAKER WILL TAP RESERVES TO COVER EXPECTED LOSSES PORSCHE AG CONFIRMED THAT IT WILL BE FORCED TO DIG INTO ITS 600 MILLION MARK 3596 MILLION CASH RESERVES TO COVER ITS EXPECTED LOSSES IN THE CURRENT FISCAL YEAR A SPOKESMAN FOR THE GERMAN SPORTS CAR MAKER HOWEVER DISPUTED THAT THE COMPANY WILL HAVE TO DIG AS DEEPLY INTO ITS RESERVES AS WAS REPORTED IN THE NEWS MAGAZINE DER SPIEGEL ACCORDING TO THE REPORT PORSCHE EXPECTS A LOSS OF 240 MILLION MARKS FOR THE FISCAL YEAR ENDING IN JULY THE COMPANY WHICH HAD A 120 MILLION MARK LOSS IN THE FISCAL FIRST HALF SAID THE MAGAZINE HAD PARROTED THE SPECULATION OF ANALYSTS WHO MULTIPLIED THE FIRSTHALF LOSS BY TWO AS WE HAVE ALREADY MADE CLEAR WE EXPECT MORE LOSSES IN THE SECOND HALF BUT WE DON'T KNOW DEFINITIVELY HOW DEEP THEY WILL BE THE SPOKESMAN SAID IN THE COMING MONTHS PORSCHE WILL ISSUE FIVE NEW VERSIONS OF ITS THREE LINES OF SPORTS CARS AND THEIR SUCCESS WILL DETERMINE THE DEPTH OF THE LOSSES HE SAID THE COMPANY AIMS TO BREAK EVEN IN THE 1994 FISCAL YEAR OR SHOW AT WORST ONLY A NARROW LOSS THE SPOKESMAN SAID IT PLANS TO RETURN TO PROFITABILITY IN FISCAL 1995 9303090005 930309 INTERNATIONAL BRIEF UNI STOREBRAND AS COMPANY POSTS PRETAX LOSS AGAINST PROFIT A YEAR AGO NORWAY'S UNI STOREBRAND AS AN INSOLVENT INSURANCE GROUP UNDER PUBLIC ADMINISTRATION SAID IT SWUNG TO A CONSOLIDATED PRETAX LOSS OF 338 BILLION KRONER 479 MILLION IN 1992 A YEAR EARLIER PRETAX PROFIT WAS 471 MILLION KRONER THE RESULTS INCLUDE UNI STOREBRAND NYE AS A NEW HOLDING COMPANY FORMED WHEN THE OLD UNI STOREBRAND AS SUSPENDED PAYMENTS TO CREDITORS ON AUG 26 1992 CONSIDERING THE DIFFICULT TIMES THE GROUP HAS GONE THROUGH THE RESULTS OF THE LIFE AND NONLIFE INSURANCE COMPANIES ARE ACCEPTABLE SAID PER TERJE VOLD CHIEF EXECUTIVE OFFICER 9303090004 930309 BUSINESS BRIEF MCDONNELL DOUGLAS CORP FIRM GETS SPANISH CONTRACT VALUED AT UP TO 257 MILLION MCDONNELL DOUGLAS CORP SAID THE SPANISH GOVERNMENT WILL BUY EIGHT AV8B HARRIER II PLUS AIRCRAFT VALUED AT AS MUCH AS 257 MILLION THE NAVAL JETS FEATURING ADVANCED RADAR AND NIGHTATTACK SYSTEMS WILL BE BUILT UNDER AN INTERNATIONAL COLLABORATIVE AGREEMENT BETWEEN SPAIN THE US AND ITALY ST LOUISBASED MCDONNELL DOUGLAS WILL SERVE AS PRIME CONTRACTOR WHILE THE SPANISH FIRM CONSTRUCCIONES AERONAUTICAS SA WILL PERFORM FINAL ASSEMBLY BRITISH AEROSPACE PLC WILL CONTINUE TO SERVE AS THE PRINCIPAL SUBCONTRACTORS TO MCDONNELL DOUGLAS 9303090003 930309 INTERNATIONAL BRIEF GAMBRO AB FIRM'S 1992 PRETAX PROFIT ROSE 27 SALES GAINED 12 SWEDISH MEDICAL EQUIPMENT GROUP GAMBRO AB SAID PRETAX PROFIT ROSE 27 LAST YEAR TO 753 MILLION KRONOR 973 MILLION BECAUSE OF 12 HIGHER SALES AND A STRONG PERFORMANCE IN ITS EUROPEAN DIALYSIS OPERATIONS IN ADDITION TO STRONG EUROPEAN SALES TRENDS THE GROUP SAID ITS COBE UNIT ACQUIRED IN 1990 AND ITS HOSPAL UNIT ACQUIRED IN 1987 SHOWED POSITIVE DEVELOPMENT ALL OF THE GROUP'S BUSINESS SEGMENTS REPORTED AN INCREASE IN SALES WITH THE SHARPEST JUMPS OF 17 AND 18 RESPECTIVELY NOTED IN THE INTENSIVE CARE AND BLOODCOMPONENT TECHNOLOGY SEGMENTS THE GROUP SAID ITS BLOODCOMPONENT TECHNOLOGY SEGMENT BENEFITED IN THE YEAR FROM SHARPLY HIGHER SALES OF DISPOSABLE PRODUCTS AND INTENSIFIED MARKETING PROGRAMS IN THE US EUROPE AND JAPAN 9303090002 930309 BUSINESS BRIEF MEDCHEM PRODUCTS INC CONCERN TO SPIN OFF ANIKA AND HOLD PUBLIC OFFERING MEDCHEM PRODUCTS INC SAID IT PLANS TO SPIN OFF ITS ANIKA RESEARCH INC UNIT TO MEDCHEM SHAREHOLDERS AND RAISE AS MUCH AS 20 MILLION IN A PUBLIC OFFERING OF ANIKA COMMON SHARES AFTER THE SPINOFF THE MOVE IS PART OF AN EFFORT TO SPEED UP RESEARCH AND DEVELOPMENT PROJECTS AT BOTH FIRMS A COMPANY SPOKESMAN SAID UNDER THE PLAN MEDCHEM WILL PUT UP 59 MILLION FOR ANIKA'S WORKING CAPITAL NEEDS AND HELP FUND RESEARCH PROJECTS AT THE NEW COMPANY OVER THE NEXT TWO YEARS MEDCHEM BASED IN WOBURN MASS MAKES BLOOD COAGULANTS AND CATHETER KITS FOR INTRAVENOUS DRUG THERAPY ANIKA MAKES PRODUCTS FOR EYE SURGERY AND THE CONTROL OF RHEUMATOID ARTHRITIS AND CERTAIN CANCERS MEDCHEM SAID IT EXPECTS TO COMPLETE THE SPINOFF IN ABOUT TWO MONTHS 9303090001 930309 SALES OF SERIES EE BONDS JUMPED 71 IN FEBRUARY WASHINGTON SALES OF SERIES EE SAVINGS BONDS TOTALED 203 BILLION LAST MONTH 71 ABOVE FEBRUARY 1992 AND THE HIGHEST FOR ANY FEBRUARY SINCE 1944 THE TREASURY SAID SALES WERE DOWN FROM 255 BILLION IN JANUARY SALES RATES ABOVE 2 BILLION HAVE BECOME COMMON RECENTLY AS THE GOVERNMENT HAS GUARANTEED AN INTEREST RATE OF 6 ON THE BONDS ON MARCH 1 HOWEVER THE TREASURY CUT THE GUARANTEE TO 4 SAVINGS BONDS HELD FIVE YEARS OR LONGER CURRENTLY EARN A MARKETBASED RATE OF 504 THE 6 GUARANTEED MINIMUM HAD MADE THEM ATTRACTIVE TO MANY INVESTORS SALES IN FEBRUARY 1944 TOTALED 210 BILLION THE VALUE OF SAVINGS BONDS HELD BY AMERICANS AT THE END OF FEBRUARY REACHED 16209 BILLION UP FROM 14078 BILLION A YEAR EARLIER 9303090191 930216 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090190 930217 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090185 930212 REVIEW & OUTLOOK EDITORIAL ENDANGERED TRAFFIC RELIEF FORGET THE SPOTTED OWL THE CLINTON INTERIOR DEPARTMENT HAS A JOBS VS SPECIES CHOICE ON ITS HANDS RIGHT NOW AFFECTING THE PRESIDENT'S IMPORTANT CALIFORNIA MIDDLECLASS BASE THE CALIFORNIA GNATCATCHER IS A TINY BIRD THE PRESS CALLS IT A SONGBIRD THOUGH HUMANS COULDN'T EXPECT TO HEAR ITS CALLS WHOSE HABITAT IS THE COASTAL SAGE SCRUB OF THE STATE ONE SUCH PLACE IS IN SOUTHERN ORANGE COUNTY WHERE THE SAN JOAQUIN HILLS TOLLWAY WILL ALLOW COMMUTERS TO BYPASS A JAMMED FREEWAY AND HAZARDOUS LOCAL STREETS THE 1 BILLION PROJECT IS ONE OF THE FIRST TO BE FINANCED PRIVATELY IN THE STATE ITS ROUTE HAS BEEN IN THE WORKS FOR 17 YEARS BUT WITH GRADING EXPECTED IN THE NEXT FEW WEEKS THE NATURAL RESOURCES DEFENSE COUNCIL AND ITS ALLIES ARE IN A FRENZY THEY ARE SEEKING AN EMERGENCY DESIGNATION OF THE GNATCATCHER BY THE US FISH AND WILDLIFE SERVICE THAT AGENCY PROPOSED AN ENDANGERED LISTING IN SEPTEMBER 1991 BUT OBJECTIONS RAISED IN THE COMMENT PERIOD CAUSED IT TO EXTEND CONSIDERATION BEYOND THE NORMAL ONE YEAR MARCH 17 IS THE NEW DEADLINE BUT THE NRDC WANTS THE EMERGENCY IN THE MEANTIME ALONGSIDE THE BIRD GAMBIT THE ENVIROS ARE PURSUING A WETLANDS CASE AGAINST THE TOLLWAY VIA THE ARMY CORPS OF ENGINEERS THE CORPS THIS WEEK REMINDED THE TOLLWAY AGENCY THAT IT NEEDS TO SATISFY SOME CONDITIONS BEFORE GRADING CAN BE BEGIN MEANWHILE A FEDERAL JUDGE IN SAN FRANCISCO HAS BEEN ASSIGNED THE SAN JOAQUIN HILLS MATTER CALIFORNIA DEVELOPERS ARE DEALING WITH OTHER SPECIES ALREADY LISTED AS ENDANGERED SUCH AS THE LEAST BELL'S VIREO ALSO A BIRD AND THE STEVENS KANGAROO RAT THESE ARE NOT EXACTLY CREATURES YOU'D GO TO SEE AT THE ZOO BUT THEY NEVERTHELESS STAND ATHWART THE MIGHTY ENGINES OF CIVILIZATION IT ISN'T BELIEVED THAT ANY OF THE PROTECTED BIRDS EATS ANY OF THE PROTECTED RATS ALTHOUGH TWO OTHER ENDANGERED BIRDS THE PEREGRINE FALCON AND THE LEAST TERN ARE NOT GOOD BUDDIES BASICALLY THIS IS ALL ABOUT HALTING GROWTH OR AT LEAST STEERING IT TOWARD INFILL CONSTRUCTION IN CENTER CITIES OF COURSE NIMBY GROUPS WILL OPPOSE THOSE TYPES OF PROJECTS JUST AS THEY OBJECT TO PAVING OVER SAGE SCRUB IT AMOUNTS TO A BLOCK ON BUILDING THE TYPE OF TIEUP CALIFORNIA CAN AFFORD LESS EASILY THESE DAYS THE TOLLWAYS NOW BEING UNDERTAKEN ARE A BIG STEP TOWARD GETTING THE STATE'S ECONOMY BACK UPRIGHT BY REDUCING CONGESTION THAT CAUSES SMOG RAISES THE COST OF DOING BUSINESS AND OTHERWISE LOWERS THE QUALITY OF LIFE SPECIES PRESERVATION AND ECOSYSTEM RENEWAL ARE ALSO OF VALUE AND SHOULD BE TRADED OFF AGAINST COMPETING INTERESTS SURELY THE SOUTHERN CALIFORNIA BUILDER INTERESTS WHO BACKED BILL CLINTON ARE HOPING HE RECOGNIZES THIS UNFORTUNATELY THE TYPE OF FEDERAL REGULATION THE NRDC HAS IN MIND IS ABSOLUTE IN NATURE THIS IS NOT THE ROAD TO A BALANCED RESOURCE POLICY SEE RELATED LETTER LETTERS TO THE EDITOR PARADISE LOST TO THE STINKING AUTO WSJ MARCH 8 1993 9302120127 9303090181 930218 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090179 930202 THE MYTH OF THE DUMB JOCK BY LINO DICUOLLO WHEN ALAN PAGE A FORMER ALLPRO DEFENSIVE TACKLE FOR THE MINNESOTA VIKINGS WAS ELECTED TO MINNESOTA'S SUPREME COURT HE BECAME THE FIRST BLACK ON THAT COURT IN ADDITION HE OVERCAME ANOTHER OBSTACLE THE STEREOTYPE OF THE DUMB JOCK ALTHOUGH ONLY A COLLEGE SENIOR I CAN UNDERSTAND THE STEREOTYPE MR PAGE HAD TO DISPEL I WAS WELL ON THE WAY TO BECOMING A DUMB JOCK MYSELF WHEN I WAS ADMITTED TO RUTGERS COLLEGE ON AN ATHLETIC SCHOLARSHIP IN 1988 I STARTED PLAYING SOCCER AT NINE YEARS OLD IN THE LOCAL RECREATION LEAGUE AT SCOTCH PLAINS NJ I PRACTICED AT EVERY POSSIBLE MOMENT AFTER SCHOOL AFTER DINNER AND MUCH OF THE DAY ON SATURDAY AND SUNDAY WHEN I WAS ASKED WHY DO YOU PLAY SOCCER ALL THE TIME I'D REPLY I WANT TO BE THE NEXT PELE I FELT THAT I HAD TO PRACTICE MORE THAN ANYONE ELSE TO ACCOMPLISH THIS MY WORK PAID OFF WHEN THE TIME CAME TO APPLY TO COLLEGE AMONG THE SCHOOLS THAT OFFERED ME ATHLETIC SCHOLARSHIP WERE RUTGERS PHILADELPHIA TEXTILE NORTH CAROLINA STATE AND THE UNIVERSITY OF AKRON MY FIRST SEMESTER WAS A SUCCESS ON THE SOCCER FIELD BUT A DISASTER IN THE CLASSROOM I FAILED MICROECONOMICS AND DID POORLY IN MY OTHER COURSES WHILE MY PARENTS WERE EAGER TO SEE MY REPORT CARD I WAS HOPING THAT THE US POSTAL SERVICE WOULD BREAK DOWN I DIDN'T EVEN WANT TO ACCEPT MY CHRISTMAS PRESENTS BECAUSE I FELT THAT I DIDN'T DESERVE THEM WHEN I FINALLY SHOWED MY REPORT CARD TO MY FATHER HE SAID IF YOU'RE GETTING GRADES LIKE THIS YOU MIGHT AS WELL DROP OUT AND GO TO WORK WHY DID HIS DISAPPOINTMENT HURT ME SO MUCH MY FATHER IS AN ITALIAN IMMIGRANT WHOSE EDUCATION ENDED AT AGE 11 HE WORKED AT TWO JOBS AS A JANITOR AT AT&T AND AS A MASON TO MAKE A BETTER LIFE FOR MY BROTHER AND ME ECONOMICALLY HE DIDN'T HAVE IT EASY NEVERTHELESS HE BOUGHT US NEW CLOTHES EVERY YEAR WHILE MY PARENTS HAD THE SAME ONES FOR SEVERAL YEARS AT A TIME HIS REACTION CRUSHED ME BECAUSE I APPRECIATED HIS SACRIFICES BUT HAD NOTHING TO SHOW FOR IT I BEGAN TO WORK HARD I'D SPEND THREE TO FOUR HOURS EVERY NIGHT STUDYING AT THE LIBRARY AND AS MUCH TIME AS NECESSARY ON THE WEEKEND MOREOVER ON ROAD TRIPS WHICH USUALLY LASTED A MINIMUM OF FOUR HOURS I'D TAKE BOOKS ON THE BUS AND STUDY FURTHER I'D READ MATERIAL TO BE COVERED THAT DAY PRIOR TO THE LECTURE TO BETTER UNDERSTAND THE TOPIC THE PROFESSOR WOULD LECTURE ON IN SEPTEMBER 1990 OUR TEAM WAS IN WILLIAMSBURG VA PLAYING IN THE COLLEGE OF WILLIAM AND MARY'S TOURNAMENT WE WON OUR FIRST GAME AGAINST OLD DOMINION 10 AND ALSO BEAT WILLIAM AND MARY 20 WE WERE OVERALL CHAMPIONS OF THE TOURNAMENT AND I WAS NAMED THE MOST VALUABLE PLAYER INSTEAD OF TALKING WITH TEAMMATES AND CELEBRATING THE VICTORY ON THE WAY HOME THAT NIGHT I SPENT SIX HOURS READING AND DOING MY HOMEWORK AMID A GROUP OF JUBILANT AND EXCITED ATHLETES SIMILARLY AFTER BEATING DARTMOUTH IN 1990'S NCAA TOURNAMENT I HAD TWO CHOICES HAVE A GREAT TIME AT THE SCARLET PUB CRITICIZING AND PRAISING OUR TEAM'S EFFORT WITH TEAMMATES AND COACHES OR STUDY THAT NIGHT I STUDIED EVEN AFTER RATIONALIZING AND JUSTIFYING FALSE REASONS TO POSTPONE IT I'VE MANTAINED A BETTER THAN B AVERAGE AND ACHIEVED DEAN'S LIST HONORS IN TWO SEMESTERS IT WOULD HAVE BEEN FAR EASIER TO NEGLECT MY STUDIES TO CONCENTRATE ON PLAYING SOCCER WHILE ALSO HAVING A GOOD TIME OFF THE FIELD AND TO HOPE THAT I WOULD BECOME ANOTHER PELE AFTER ALL THE MYTH OF THE DUMB JOCK TOLD ME THAT I COULD NOT MAKE IT AS A SCHOLAR BUT THE MYTH IS NOT A REALITY FOR MOST COLLEGE ATHLETES IT IS A SELFFULFILLING PROPHECY OUR SUCCESS IN SPORTS COMES FROM SOME TALENT AND A LOT OF HARD WORK EVEN SO WE DON'T HAVE TO CHOOSE TO WORK AT NOTHING ELSE MOST COLLEGE ATHLETES HAVE AT LEAST AVERAGE INTELLIGENCE SOME ARE BRILLIANT BUT WE ALL FACE THE SAME DILEMMA PUTTING ALL OUR TIME AND ENERGY INTO WHAT WE ARE GOOD AT OR INVESTING IN OUR STUDIES WHERE THE LONGTERM PAYOFF IS GOOD BUT IMMEDIATE SUCCESS IS UNLIKELY NEVERTHELESS IT IS A CHOICE IN SHORT COLLEGE ATHLETES ARE NOT DOOMED BY THEIR GENES TO NEGLECT THE EDUCATIONAL OPPORTUNITIES THAT COLLEGE OFFERS THEY BECOME DUMB JOCKS BECAUSE IT IS EASIER AND MORE GLAMOROUS THAN HARD WORK MR DICUOLLO A SENIOR AT RUTGERS AND FORMER COCAPTAIN OF ITS SOCCER TEAM HOPES TO ATTEND LAW SCHOOL IN THE FALL SEE RELATED LETTER LETTERS TO THE EDITOR SPORTS FAME & FORTUNE ANOTHER JOCK MYTH WSJ MARCH 8 1993 9302020182 9303090174 930210 ENVIRONMENT TO DENVER'S DISMAY ITS SMOG IS BACK BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER IT WAS KNOWN AS THE BROWN CLOUD A NASTY AIRBORNE SOUP OF DUST CARBON MONOXIDE AND NITROGEN OXIDES THAT CAUSED EVERYTHING FROM MILD IRRITATIONS TO SERIOUS RESPIRATORY AILMENTS IN THE EARLY 1980S IT MADE DENVER'S SMOG PROBLEM AMONG THE WORST IN THE NATION BUT BY 1990 AFTER AN AMBITIOUS CLEANUP PROGRAM THE INFAMOUS CLOUD WAS DECLARED DEAD AND DENVER WAS BALLYHOOED AS A ROLE MODEL FOR OTHER SMOGRIDDEN CITIES NOW IN THIS WINTER OF DENVER'S DISCONTENT AS THE CITY REELS FROM A BOYCOTT INSPIRED BY THE STATE'S PASSAGE OF AN ANTIGAY AMENDMENT AND A HEPATITIS OUTBREAK SPREAD AT GLITZY CHRISTMAS PARTIES COMES THIS BAD NEWS THE BROWN CLOUD HAS RETURNED AND IN THAT RETURN LIES A WARNING FOR OTHER CITIES AIRPOLLUTION PROBLEMS MAY BE EVEN TOUGHER TO SOLVE THAN THEY SEEM NOW FOR EXAMPLE SMOG EXPERTS THINK THE BROWN CLOUD'S TEMPORARY DISAPPEARANCE FROM THE MILE HIGH CITY MAY HAVE RESULTED MORE FROM LUCK THE HAPPY CONFLUENCE OF UNUSUALLY WARM WEATHER AND AN ECONOMIC SLOWDOWN AND TOUGHER NATIONAL AUTO EMISSION STANDARDS THAN FROM CLEANUP EFFORTS INDEED AS DENVER PLANS AN INTENSIFIED EFFORT TO DISSIPATE THE CLOUD QUESTIONS LINGER ABOUT WHETHER EVEN THAT WILL BE ENOUGH ADDING TO CONCERNS IS THE CONSTRUCTION OF THE CITY'S HUGE NEW AIRPORT 24 MILES OUT OF TOWN CERTAINLY HAVING THE AIRPORT MUCH FARTHER OUT WILL ONLY WORSEN THE AIR IN THE AREA AS PEOPLE HAVE TO DRIVE FARTHER TO CATCH A PLANE SAYS RICHARD MCCLINTOCK EXECUTIVE DIRECTOR OF COLORADO'S PUBLIC INTEREST RESEARCH GROUP AND THE CITY'S REGIONAL TRANSPORATION DISTRICT IS HOGTIED IN ITS EFFORTS TO INCREASE MASS TRANSIT TO THE AIRPORT BY A VOTERAPPROVED INITIATIVE THAT HAS FROZEN PUBLIC SPENDING THE LESSON TO BE LEARNED IS THAT YOU DON'T WANT TO ASSUME YOU'VE SOLVED THE PROBLEM BECAUSE YOU'VE MET THE STANDARDS FOR A YEAR OR TWO SAYS DIANE FISHER STAFF SCIENTIST FOR THE ENVIRONMENTAL DEFENSE FUND IN SAN FRANCISCO ADDS KEN LLOYD EXECUTIVE DIRECTOR OF THE REGIONAL AIR QUALITY COUNCIL THIS HAS INDICATED TO US WE NEED TO BE MORE DILIGENT CERTAINLY THE RETURN OF THE BROWN CLOUD HAS CHANGED SOME ATTITUDES HERE IN RECENT YEARS AS THE CITY'S AIR WAS GETTING CLEANER POLITICIANS AND RESIDENTS GRUMBLED ABOUT THE ADDITIONAL RESTRICTIONS BEING DISCUSSED TO BRING THE CITY INTO COMPLIANCE WITH THE 1990 CLEAN AIR ACT AMENDMENTS WE WERE HAVING TO DEAL WITH QUESTIONS ABOUT WHY WE ARE DOING THIS SAYS MR LLOYD NOW WE'RE GOING TO HAVE TO JUSTIFY THAT OUR PLAN IS ENOUGH DENVER'S POLLUTION PROBLEMS PEAKED IN THE WINTER OF 198586 WHEN THE CITY REPORTED CARBON MONOXIDE VIOLATIONS ON 65 DAYS THE MOST OF ANY CITY IN THE COUNTRY WITH THE CITY'S PRISTINE ROCKY MOUNTAIN ENVIRONMENTAL IMAGE AT STAKE STUNNED CIVIC LEADERS INSTITUTED A CLEANUP PROGRAM RESIDENTS WERE ASKED TO VOLUNTARILY RESTRICT THEIR DRIVING WINTERTIME USE OF OXYGENATED FUELS WAS REQUIRED A CAR INSPECTION PROGRAM WAS ADOPTED AND SEVERAL INDUSTRIES AGREED TO REDUCE THEIR POLLUTION INDUCEMENTS WERE OFFERED TO INCREASE BUS USE WOOD BURNING WAS PROHIBITED ON RED AIR DAYS WHEN THE TEMPERATURE INVERSION HELD SMOKE ON THE GROUND AND THE CITY'S ANIMAL CONTROL OFFICERS WERE INSTRUCTED TO LOOK FOR BELCHING CHIMNEYS AS THEY MADE THEIR ROUNDS BY 1990 THE CARBON MONOXIDE STANDARDS WERE VIOLATED ON ONLY THREE DAYS AND THE CITY HAD GONE FOR YEARS WITHOUT VIOLATING THE FEDERAL PARTICULATE OR PM10 STANDARDS BUT ANY NOTION THAT THE CITY HAD BANISHED THE BROWN CLOUD WAS SMUDGED OUT IN DECEMBER AS A COLD STILL AIR MASS SETTLED OVER THE PLATTE RIVER VALLEY AND A HIGHER WARM LAYER OF AIR LOCKED POLLUTANTS CLOSE TO THE GROUND THIS INVERSION AS THE AIR LAYERS ARE KNOWN WAS SO LOW THAT TOPS OF TREES PEEKED OUT OF THE BROWN MESS WORKERS ON TOP FLOORS COULD SEE THE MOUNTAIN TOPS TO THE WEST BUT COULDN'T MAKE OUT OBJECTS ON THE STREET BELOW TWICE THIS WINTER THE CITY VIOLATED TWO KEY FEDERAL STANDARDS CARBON MONOXIDE AND PARTICULATES EMISSIONS AND A STATE VISIBILITY STANDARD ON THE SAME DAY SOMETHING IT HAD NEVER DONE BEFORE THE FEDERAL PARTICULATE STANDARD WAS VIOLATED TWO OTHER TIMES AND THE CARBON MONOXIDE STANDARD FOUR OTHER TIMES IN DECEMBER ALONE MORE THAN HALF THE TIME THIS WINTER THE CITY'S AIR HAS BEEN BAD ENOUGH TO TRIGGER WOODBURNING RESTRICTIONS ALL THIS HAS RAISED QUESTIONS ABOUT HOW EFFECTIVE THE CITY'S CLEANAIR PROGRAM HAS REALLY BEEN STEVE ARNOLD A STAFFER WITH THE STATE'S AIR POLLUTION DIVISION EXPLAINS THAT THE AREA HAS EXPERIENCED RELATIVELY BENIGN METEOROLOGY IN THE PAST SEVERAL YEARS SO THAT POLLUTANTS HAVEN'T BEEN PINNED TO THE GROUND BY COLDAIR INVERSIONS EXPERTS ALSO THINK THE CITY'S ECONOMIC DOWNTURN IN RECENT YEARS CONTRIBUTED TO THE POLLUTION REDUCTION ALTHOUGH THAT IS MORE DIFFICULT TO MEASURE CONSTRUCTION WHICH CAN CONTRIBUTE ABOUT 20 OF PM10 POLLUTION WAS AT A NEAR STANDSTILL IN DENVER IN THE LATE 1980S CLEANER CARS HELPED TOO THANKS TO STRICTER AUTOEMISSION REGULATIONS A 57 INCREASE IN DENVER'S TRAFFIC BETWEEN 1975 AND 1989 WAS MORE THAN OFFSET BY THE DECLINE IN CARBON MONOXIDE EMISSIONS PER MILE FROM 85 GRAMS FOR THE AVERAGE US CAR TO 25 GRAMS BUT THIS WINTER ALL THAT CHANGED THIS YEAR WE ARE SEEING A MUCH MORE TYPICAL WINTER PATTERN MR ARNOLD SAYS THAT MEANS COLD INVERSIONS AND MORE SAND ON ICY STREETS WHICH CONTRIBUTE TO PARTICULATES PARTICULATES LEVELS HAVE ALSO INCREASED WITH THE CONSTRUCTION OF THE NEW AIRPORT AN UPTURN IN HOUSING CONSTRUCTION AND ABOUT 335 MILLION IN RECENTLY APPROVED ROAD AND BUILDING PROJECTS IN ADDITION WITH RED ALERT DAYS INCREASING MANY FRUSTRATED RESIDENTS HAVE GIVEN UP TRYING TO RESTRICT THEIR DRIVING NOW FACING NEW FEDERAL SANCTIONS THAT COULD INCLUDE WITHHOLDING FEDERAL HIGHWAY FUNDS THE DENVER METRO AREA IS BEEFING UP ITS PROGRAMS THE REGIONAL AIR COUNCIL HAS ASKED THE STATE LEGISLATURE TO APPROVE A NEW TOUGHER CAR INSPECTION AND MAINTENANCE PROGRAM TO LOWER THE LEVEL OF PARTICULATES THE REGIONAL AIR QUALITY COUNCIL IS ASKING CITY STREET CREWS TO USE LESS SAND A MEASURE THAT ISN'T LIKELY TO BE VERY POPULAR DURING DENVER'S INFAMOUS SNOWSTORMS TOUGHEST OF ALL DENVER MUST FIND WAYS TO REDUCE DRIVING IDEAS BEING CONSIDERED INCLUDE A SUBSIDY PROGRAM TO ENCOURAGE EMPLOYERS TO BUY BUS TICKETS FOR EMPLOYEES LIMITING PARKING DOWNTOWN AND INCREASING THE NUMBER OF CARPOOL LANES MR LLOYD SAYS THE CITY ALSO PLANS A LIGHTRAIL TRAIN FOR THE INNER CITY AND IS STUDYING ADDING A TRAIN TO THE AIRPORT NOT EVERYONE IS SATISFIED THAT DENVER'S COMMITMENT TO CUTTING TRAFFIC GOES FAR ENOUGH THE ENVIRONMENTAL DEFENSE FUND ESTIMATES DENVER'S AUTOMOBILE USAGE NOW 65 MILLION MILES A YEAR WILL DOUBLE IN THIS DECADE YET THE CITY'S PLANS DON'T INCLUDE FUNDING TO ACTUALLY BUILD MASS TRANSIT TO THE AIRPORT OR TO EXPAND THE CITY'S LIGHTRAIL SYSTEM TO ITS MOST HEAVILY TRAFFICKED AREAS CRITICS NOTE BUT IN DENVER REDUCING RELIANCE ON THE AUTOMOBILE IS EASIER SAID THAN DONE SAYS SHEILA BURNS THE STATE'S AIR QUALITY PROGRAM COORDINATOR WE'RE PART OF THE GREAT WEST WHERE PEOPLE LIKE THEIR INDIVIDUAL RIGHTS PEOPLE WANT TO TAKE THEIR CAR WHEREVER THEY WANT TO GO SEE RELATED LETTER LETTERS TO THE EDITOR ON AN ORDINARY DAY YOU CAN COUGH FOREVER WSJ MARCH 8 1993 9302100090 9303090170 930219 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090167 930212 VALENTINE FICTION TWO LUCKY PEOPLE' BY DANIELLE CRITTENDEN THEY SETTLED UPON VALENTINE'S DAY EVEN THOUGH THEY KNEW IT WAS CORNY THE DATE WAS NEGOTIATED OVER CELLULAR TELEPHONE HIS IN A BRIEFCASE IN MEXICO CITY HERS ON THE DASH OF HER INFINITI IT HAD TO BE THE 14TH BRAD SHOUTED HIS VOICE BOUNCING OFF A SATELLITE HE WAS BACK AND FORTH UNTIL THEN BUT HE HAD A WINDOW OF TIME AS HE PUT IT BETWEEN THE 13TH AND THE 18TH THAT WOULD ALLOW FOR A FEW DAYS AWAY A HONEYMOON EVEN SO LONG AS THEY DIDN'T GO FAR AS FOR HER LISA HOLLERED BACK THE CASE SHE WAS WORKING ON WOULDN'T BE WRAPPED UP UNTIL THE FOURTH THEN SHE WAS IN ATLANTA FROM THE EIGHTH TO THE 10TH THE 14TH FELL ON A WEEKEND SHE HAD TO BE IN WASHINGTON FOR THE 17TH THEN LOOKING AHEAD WELL NOW WE'RE INTO MARCH OF COURSE IT COULD BE ANYTIME THEY'D WAITED SIX YEARS BUT NO LET'S DO IT HE INSISTED WE'RE ALWAYS SAYING WE'RE TOO BUSY LET'S DO IT NOW SO SHE ENTERED IT IN HER DATE BOOK ALONGSIDE HER SCRIBBLES TO PICK UP DRY CLEANING WEDDING CONFIRM TIME PLACE NOW THERE WAS SO MUCH TO DO THINGS SHE HADN'T CONSIDERED WHEN SHE'D SAID YES THE EVENING THEY CELEBRATED THEIR BONUSES THEY'D DONE IT QUIETLY JUST THE TWO OF THEM AT THE CORNER BISTRO CERTAINLY NOT THE PARTY THEY ONCE WOULD HAVE THROWN THERE WAS NO ONE WITH WHOM IT WOULDN'T HAVE BEEN IN POOR TASTE TO CELEBRATE SHE HAD BECOME TOO FAMILIAR WITH THE HANDGRIP OF A PERSON WHOSE NAILS WERE SCRAPED DOWN FROM CLINGING TO HIS JOB AND THAT ACCOMPANYING DEATH SMILE THE GHOULISH GRIMACE THAT PRECEDES THE PLUNGE HIS HEARTFELT CONGRATULATIONS WOULD BE OFFERED WITH A SLY GLANCE AT THE CHAMPAGNE LABEL MOET IS IT SOME COUPLES THEY'D HAD TO STOP SOCIALIZING WITH ENTIRELY THOSE POOR SOULS WHO HAD BOUGHT NOW CONDEMNED TO THEIR BOXY UNSALEABLE ONEBEDROOMS WITH TWO RAMPAGING TODDLERS THEY WOULD COME TO BRAD AND LISA'S FOR DINNER AND ON THEIR WAY BACK FROM THE BATHROOM THE WIFE OR HUSBAND WOULD PEER COVETOUSLY INTO THE SECOND BEDROOM THE ONE THAT HOUSED ONLY A COMPUTER AND A DESK HAVING A SPARE ROOM IN MANHATTAN IS THE EQUIVALENT OF OWNING A POOL IN THE SUBURBS WHAT SPACE THEY'D REMARK WITH THAT DEATH GRIN BUT IT WASN'T THEIR FAULT ALL SHE AND BRAD HAD DONE WAS TO BE SUCCESSFUL WHO COULD HAVE KNOWN THAT BANKRUPTCY LITIGATION WOULD END UP BEING SO LUCRATIVE OR IN BRAD'S CASE THAT ENTIRE CIVILIZATIONS WOULD SUDDENLY OPEN THEIR BORDERS TO TRADE SO THEY WENT TO THE BISTRO AND HE MADE IT UP TO HER BY ORDERING AN ESPECIALLY GOOD BOTTLE OF RED WINE THE PROPOSAL CAME RIGHT OUT OF THE BLUE A FRIEND OF HERS ONCE THEORIZED THAT MEN DECIDE TO GET MARRIED THE WAY THEY'LL FLAG DOWN A TAXI FOR THE LONGEST TIME THEY'RE HAPPY TO WALK UNAWARE THE WOMAN'S FEET ARE KILLING HER AND THEN SUDDENLY THE COMFORT OF A CAB LOOKS GOOD TO THEM THE FIRST PLAUSIBLE WOMAN TO COME ALONG AND IT'S HEY TAXI BRAD STROKED HER KNUCKLES AND GULPED SOME WINE AND SAID WHAT THE HELL HE'D BEEN THINKING ABOUT IT AND HE WAS SICK OF THE IMPERMANENCE OF THEIR LIFE TOGETHER THEY WERE STILL LIVING WITH HER SHELVES FROM COLLEGE AND WHAT FURNITURE THEY DID BUY WAS ALWAYS A STOPGAP BECAUSE THEY WERE NEVER IN THE SAME LIVING ROOM FOR MORE THAN THREE YEARS THOSE DUCKCLOTH SOFAS AND FIBERBOARD WALL UNITS THAT DISINTEGRATED THE MOMENT ONE OF THE BURLY MOVERS PICKED IT UP MAYBE IT WAS TIME FOR THEM TO REFOCUS A LITTLE MAKE SOME ADJUSTMENTS TO THEIR LIFESTYLE INVEST IN SOMETHING FOR ONCE MADE OF MAHOGANY SHE WAS STARTLED SHE HAD TO ADMIT THEY HADN'T SPOKEN OF IT NOT FOR THE LONGEST TIME WHEN WAS IT ANYWAY LAST YEAR SHE GUESSED AFTER HIS OFFICE CHRISTMAS PARTY WHEN THEY WERE BOTH A LITTLE TIPSY THEY LAY ON THEIR BED THE LATE NEWS SWITCHED ON BUT MUTED HER STOCKINGED LEGS SCISSORED ON THE SHEETS BRAD IN HIS JOCKEYS A SIREN FADING DOWN THIRD THEY SKETCHED FLOW CHARTS IN THE AIR THEIR GOALS THE STATE OF THEIR INVESTMENTS THANK GOD THEY'D RENTED MARRIAGE WAS NOT THE ISSUE THEY'D NEVER UNDERSTOOD IT TO BE MORE THAN A FORMALITY FOR THE SAKE OF CHILDREN BUT PERHAPS THAT WAS WHEN THE IDEA GOT HOLD OF BRAD IT BURROWED INTO HIS BRAIN LIKE ONE OF THOSE MINUTE TROPICAL FLIES AND HATCHED A YEAR LATER SO SHE WAS HAPPY YES SIGNIFICANTLY HAPPY BUT SHE FELT TOO THAT THEY SHOULD KEEP IT IN PERSPECTIVE SHE DIDN'T WANT MARRIAGE TO CHANGE THEM AT LEAST NOT IN A NEGATIVE WAY THIS IS WHAT SHE TOLD HIM AFTER HE PROPOSED THEY'D BEEN HAPPY TOGETHER AND SO LUCKY MARRIAGE WOULD BE THEIR WAY OF DEMONSTRATING THEIR FAITH IN THEIR LONGTERM SUITABILITY AND CHILDREN HE'D ASKED WHAT ABOUT CHILDREN WELL SHE'D ANSWERED THEY COULD CERTAINLY BE PROJECTED NOW SHE WAS PRETTY SURE THAT SHE WAS GOING TO BE MADE A PARTNER IN A YEAR AND IF SO SHE'D BE ABLE TO RISK THE MATERNITY LEAVE A WEEK LATER A WEDDING CONSULTANT ARRIVED IN LISA'S OFFICE A BRISK WOMAN IN A BRISK SUIT SITTING COZILY ON THE SOFA WITH HER LEGS FOLDED UNDER HER LIKE A POCKETKNIFE LISA DESPERATELY NEEDED A CONSULTANT HER FRIENDS WERE TOO BUSY AND HER MOTHER HAD LONG GIVEN UP ON HER MARRYING AFTER HER FATHER DIED SHE'D RETIRED TO TAMPA AND RETIRED TOO FROM HER RELATIONSHIP AS MOTHER OF COURSE SHE WAS THRILLED SHE TOLD LISA FROM THAT INAUDIBLE PORTABLE PHONE SHE WAS ALWAYS TAKING OUT ON THE BALCONY BUT WHEN YOU GOT TO BE 33 YOU WERE BIG ENOUGH TO DO YOUR OWN WEDDING JUST TELL HER WHEN TO SHOW UP THE CONSULTANT DAHLIA CALLED THE MEETING TO DISCUSS THEME THEY BRAD AND LISA HAD DECIDED THAT THE WEDDING WOULD NOT BE TOO LARGE JUST FAMILY THEIR CLOSEST FRIENDS AND A FEW KEY PEOPLE FROM WORK BEYOND THAT NOT MUCH HAD BEEN FINALIZED INDEED IT HADN'T OCCURRED TO LISA IN THE MYRIAD OF DETAILS TO CONSIDER THAT THEME WOULD BE ONE OF THEM A LOT OF PEOPLE STILL WANT WEDDINGS WITH A RELIGIOUS THEME DAHLIA WAS SAYING AS SHE FISHED OUT A BLANK YELLOW PAD FROM HER BRIEFCASE THAT I TAKE IT IS NOT FOR YOU BUT THERE ARE OTHERS WHO WANT SOMETHING MORE PERSONALIZED SINCE YOU'RE GETTING MARRIED ON VALENTINE'S DAY WE COULD PLAY WITH THAT A LITTLE OH NO NOTHING HOKEY OR WE COULD GO WITH SOMETHING ELSE A COUPLE I DID GOT MARRIED AT THEIR BEACH HOUSE IN MONTAUK RIGHT THERE ON THE SAND IT WAS FABULOUS DAHLIA WENT ON ASKING HER QUESTIONS FROWNING NOW AND THEN AS IF SHE WERE SOLVING A COMPLICATED EQUATION LISA WHO'D HOPED THIS MEETING WOULD GO LIKE ANY OTHER FOUND HERSELF MEDITATING INTO HER COMPUTER SCREEN AND ITS OFFLINE PATTERNS OF SEA GULLS CIRCLING HOW ABOUT THIS DAHLIA SAID AFTER A LONG PAUSE I SEE YOU BOTH WEARING SUITS AT THE ST REGIS IF WE CAN GET IT OR A CLUB WHITE LILIES WHITE GLADS MAYBE SOME FLOX A MAID OF HONOR NO BRIDESMAIDS RECEPTIONS WITH CHAMPAGNE AND HORS D'OEUVRES CREATIVE ONES I MEAN NO SUSHI NO BUFFET OR SITDOWN EITHER UNLESS OF COURSE YOU WANT IT THE LENGTH OF TIME YOU'VE LIVED TOGETHER WELL I DON'T THINK A FULLBLOWN THING IS IN ORDER PEOPLE DO IT OF COURSE BUT WE WANT TO KEEP IT UNDERSTATED AND HERE SHE SHRUGGED A TRIFLE REGRETFULLY BECAUSE IT'S NOT THE '80S ANYMORE IS IT SOME OF YOUR GUESTS MIGHT BE UNEMPLOYED LISA NODDED THINKING YES SHE LOVED BRAD SHE LOVED HIM EVEN ENOUGH FOR THIS BUT IT WAS ALL SO SUDDEN HE'D GIVEN HER NO INKLING DAHLIA WAS WAITING FOR HER RESPONSE NOT IMPATIENTLY THAT WAS HER VIRTUE BUT CASUALLY TAKING IN THE FIXTURES REAL WOOD AND ITALIAN MARBLE INSTALLED WHEN THERE WAS MONEY TO THROW AROUND THE UNTARNISHED TREASURES OF A NEWLY FALLEN CIVILIZATION I THINK I KNOW YOUR BOSS DAHLIA VENTURED SENSING UNEASE I THINK I ONCE DID AN ANNIVERSARY PARTY FOR HIM SHE CHECKED HER WATCH LOOK WHY DON'T I LEAVE YOU WITH THESE IDEAS SHE PACKED UP HER BRIEFCASE LISA'S PHONE STARTED RINGING AGAIN IT WAS BRAD GOD BRAD CALLING FROM MEXICO HIS VOICE CRACKLING THROUGH THE OZONE NO NO IT'S REALLY OKAY SHE PANTOMIMED A WAVE AT DAHLIA AS SHE REACHED FOR HER DATE BOOK NO I'M NOT DISAPPOINTED I'VE BEEN LOOKING AT MY SCHEDULE TOO HON AND THE 14TH MIGHTN'T WORK FOR ME EITHER I'M HAPPY TO PUSH IT BACK MS CRITTENDEN HAS JUST FINISHED A COLLECTION OF SHORT STORIES SHE LIVES IN NEW YORK CITY SEE RELATED LETTER LETTERS TO THE EDITOR HERE'S LOOKIN' OUT FOR YOU KID WSJ MARCH 8 1993 9302120008 9303090160 930223 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090157 930224 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303090155 930209 BUSINESS WORLD THE IRONIC LIFE OF A CONTROVERSIAL CORNELLIAN BY TIM W FERGUSON OF ALL THE COLLEGE TURMOIL OF THE ERA CORNELL'S IN 1969 WAS AMONG THE MOST SEARING THE IMAGE LINGERS OF ARMED BLACK STUDENTS EMERGING FROM THE STUDENT UNION A SPECTER OF VIOLENCE HUNG OVER CAMPUS FOR THE BETTER PART OF AN APRIL WEEK CAREERS AND EVEN LIVES WERE SHATTERED ON BOTH SIDES AND A VENERABLE INSTITUTION WAS CHANGED FOR BETTER OR WORSE AT LEAST ONE GRADUATE OF THAT SOBERING SPRING HAS PROSPERED THOMAS W JONES GAINED ADVANCED DEGREES AND SPENT MOST OF THE 1970S AND 1980S AT ARTHUR YOUNG & CO AND THE JOHN HANCOCK INSURANCE COMPANY IN 1989 HE JOINED TIAACREF THE WORLD'S LARGEST PRIVATE PENSION FUND LAST MONTH HE BECAME ITS PRESIDENT AND CHIEF OPERATING OFFICER HIS MOVES HAVE NOT ESCAPED THE ATTENTION OF SOME OLD PROFESSORS WHOSE RETIREMENTS ALONG WITH THOSE OF COLLEGE FACULTY AROUND THE COUNTRY REST ON TIAACREF THEIR MEMORY IS OF TOM JONES THREATENING THEIR LIVES ON A TERRIBLE TUESDAY NEARLY A QUARTERCENTURY AGO THE SUNDAY BEFORE MR JONES HAD BEEN THE LAST TO LEAVE STRAIGHT HALL RIFLE IN ONE HAND AND A FIST CLENCHED WITH THE OTHER HIS PHOTO GRACED THE FRONT PAGE OF MONDAY'S CORNELL DAILY SUN THAT DAY THE FACULTY VOTED TO REJECT CONCESSIONS MADE TO EMPTY STRAIGHT WITHOUT A FIREFIGHT TENSIONS ROSE AGAIN CULMINATING IN A MASS ASSEMBLY TUESDAY EVENING THERE MR JONES'S REVOLUTIONARY RHETORIC EMERGED HE WAS PREPARED TO DIE AND GAVE CORNELL ONLY HOURS TO LIVE HE NAMED ADMINISTRATION AND FACULTY RACISTS WHO WOULD BE DEALT WITH TARGETS OF HIS WRATH INCLUDED ALLAN BLOOM WHO WOULD GO ON TO GREATER FAME AS AUTHOR OF THE CLOSING OF THE AMERICAN MIND A BOOK SHAPED BY THE 1969 EXPERIENCE WALTER BERNS MR JONES'S OWN GOVERNMENT PROFESSOR WHO LATER JOINED THE AMERICAN ENTERPRISE INSTITUTE AND ALLAN SINDLER WHO BECAME DEAN OF THE PUBLICPOLICY SCHOOL AT THE UNIVERSITY OF CALIFORNIABERKELEY ALL LEFT CORNELL IN THE WAKE OF THE EPISODE MR JONES SAYS THIS TODAY I HAD TO DECIDE WHETHER MY PRINCIPLES WERE WORTH PERHAPS FATAL INJURY AND MY STATEMENT MEANT THAT THOSE FACULTY MEMBERS WHO WERE AT THE HEART OF THE RESISTANCE SHOULD ALSO DECIDE IF THEIR PRINCIPLES WERE WORTH PERHAPS THE SAME DEGREE OF INJURY HE MAINTAINS IT WAS NOT A DIRECT THREAT AND SAYS IF ANYONE WAS REALLY FRIGHTENED BY WHAT I SAID I WOULD APOLOGIZE FOR THAT AND SAY I'M SORRY THAT IT HAPPENED MR JONES IS ALTERNATELY REGRETFUL AND RESOLUTE IN DISCUSSING 1969 BLACKS ENDED THE STRAIGHT STANDOFF WITH DIGNITY HE SAYS AFTER HE CRAFTED TOGETHER A SET OF DYNAMICS AND EVENTS AND FORCES TO MAKE IT HAPPEN HIS EXHORTATIONS ON TUESDAY GALVANIZED WHITE STUDENTS TO PUT THEMSELVES BETWEEN BLACKS AND POLICE BY STAGING THEIR OWN OCCUPATION IN A DOUBLEDAY COLLECTION OF ESSAYS ABOUT THE EVENTS DIVIDED WE STAND A WHITE GRADUATE STUDENT WROTE THAT MR JONES'S SPEECH WAS REPEATEDLY REFERRED TO AFTERWARDS AS THE MOST MEMORABLE AND THE MOST TERRIFYING ORATORY OF THE CRISIS HE TAPPED THE CROWD'S SYMPATHY FOR THE BLACKS AT ONE MOMENT AND THEIR FEAR OF THE BLACKS AT THE NEXT HE SPOKE VIOLENTLY BUT SAID IT WAS THE WHITES WHO WERE VIOLENT IN REFLECTIONS HE RECENTLY DRAFTED MR JONES WRITES I WILL NOT CONCEDE MORAL SUPERIORITY TO PERPETRATORS OF PSYCHOLOGICAL AND INTELLECTUAL VIOLENCE MEANING OPPONENTS OF BLACK STUDIES A PUSH FOR WHICH UNDERLAY MUCH OF CORNELL'S UNREST IT WAS THE NUB OF A DISPUTE OVER DEMOCRATIZATION OF THE UNIVERSITY THE SON OF A NUCLEAR PHYSICIST MR JONES ENTERED CORNELL AT 16 PREPARED TO EXCEL IN ITS TRADITIONAL MILIEU HE WAS ELECTED FRESHMAN CLASS PRESIDENT AND SOCIALIZED WITH WHITES AT THE SAME TIME HOWEVER CORNELL UNDERTOOK ONE OF THE EARLIEST COLLEGE DRIVES TO ENROLL BLACKS FROM GHETTO BACKGROUNDS CLASHES BETWEEN THE IVY AND STREET CULTURES MOUNTED IN THE MONTHS LEADING UP TO SPRING 1969 HE RELUCTANTLY JOINED IN STRAIGHT'S SEIZURE MR JONES SAYS OUT OF SOLIDARITY WHEN WHITE FRATERNITY MEN STAGED A RAID HE SAYS HE LED IN REPELLING THEM THE CAMPUS SDS UNIT MARCHING IN SUPPORT OF THE BLACKS HELPED SPREAD RUMORS OF A PENDING NEW INCURSION IN THE SIEGE ATMOSPHERE INSIDE THE BUILDING AS HE SAW THAT SHADOW OF FAILURE MIXED WITH FEAR IN THE EYES OF POOR BLACKS WHO HAD NEVER BEATEN WHITE PEOPLE AT ANYTHING IN THEIR LIFE MR JONES TOOK COMMAND HE WAS FULLY RADICALIZED ARMS WERE BROUGHT IN I FULLY HAVE TO ACCEPT RESPONSIBILITY FOR THE GUNS BEING THERE HE SAYS I WOULDN'T PUT THAT RESPONSIBILITY OFF ON ANYBODY ELSE THE BLACKS KEPT THEIR GUNS WHEN THEY LEFT THE HALL AND AN UNEASY QUIET LASTED UNTIL FACULTY TRADITIONALISTS SQUELCHED THE DEAL UNDOING EARLIER DISCIPLINARY ACTION SOON OUTSPOKEN PROFS WERE MADE FEARFUL ENOUGH TO MOVE THEIR FAMILIES TO MOTELS A BRIGHT BLACK FRESHMAN UNDER BLOOM'S TUTELAGE ALAN KEYES WAS SECRETED AWAY TO PURSUE STUDIES ELSEWHERE EN ROUTE TO NOTORIETY IN AMERICAN POLITICS THE NEXT DAY THE FACULTY REVERSED ITSELF AND THE PRESSURE DISSOLVED INTO RECRIMINATIONS PRESIDENT JAMES PERKINS LEFT TO FOUNDATION WORK ALTHOUGH MR JONES AS AFROAMERICAN SPOKESMAN ABUSED HIM AS WELL HE SPEAKS FONDLY OF MR PERKINS WHO SALUTED HIM ON BECOMING NO 2 AT TIAACREF THE TWO COULD HAVE RESOLVED THE ISSUES QUIETLY HAD INTRANSIGENTS NOT SPOILED FOR A FIGHT HE INSISTS MR JONES STUCK AROUND TO GET AN MA AND TO PUT TOGETHER THE BLACK STUDIES CURRICULUM HE PARTED WITH THE MILITANTS WHO CONTINUED TO DENOUNCE CORNELL SINCE THEN I HAVE NEVER ASSOCIATED AGAIN WITH THE STUDENTS WHO LED US INTO THE SITUATION OR SIMILAR TYPES OF PEOPLE HE LIKENS HIS MATURATION FROM THE ORDEAL TO THAT FROM SERVING IN A BLOODY MILITARY BATTLE AFTER TWO DECADES RISING IN THE CORPORATE WORLD HE SAYS HE IS READY TO RECOMMIT HIMSELF TO HIS RACE BUT THE SENTIMENTS ARE DIFFERENT THIS TIME HE SAYS HE PLANS TO START A SCHOOL FOR NEW YORK CITY BOYS IN NEED OF SURROGATE PARENTING THAT COULD GIVE THEM THE SKILLS SELFCONFIDENCE AND VALUES TO THRIVE AT A PLACE LIKE CORNELL HE LIKES BILL CLINTON'S NEW COVENANT AND SAYS HIS GENERATION HAS A CALLING TO HEAL SOME OF THE WOUNDS THAT HAVE BEEN CREATED TO CLEAN UP SOME OF THE UNFINISHED BUSINESS FROM THE 1960S HE FRETS OVER ACTIONS THAT SOW THE SEEDS OF NEW ANIMOSITIES BY CREATING A SYSTEM OF REVERSE PREFERENCES AND DISCRIMINATION HE LAMENTS THAT SOME RACIAL STUDIES AND RESIDENCE PROGRAMS ALSO PART OF THE CORNELL DRAMA HAVE ENCOURAGED A SEPARATIST ETHIC HE ADVOCATES BREAKING DOWN BARRIERS AND SAYS PROSPECTIVE STUDENTS WHO DON'T WISH TO BE PART OF THE BROADER EXPERIENCE PERHAPS OUGHT TO LOOK SOMEWHERE ELSE MR JONES SOON WILL BE ABLE TO SHAPE CORNELL POLICY AGAIN IN THE LATEST OF IRONIES HE IS TO BECOME A TRUSTEE OF HIS ALMA MATER THIS SUMMER SEE RELATED LETTER TERRORIZED CAMPUS NOW HE'S A TRUSTEE WSJ MARCH 8 1993 9302090014 9303090140 930226 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303080163 930308 CORPORATE FOCUS PHARMOR FORGES STRONGER TIES WITH MANUFACTURERS SUPPLIERS GAIN INSTORE CLOUT AS DISCOUNTER SEEKS NARROWER PROFITABLE MIX BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL YOUNGSTOWN OHIO THE SHAPE OF PHARMOR STORES TO COME MAY BE IN THE HANDS OF RUBBERMAID AND MAYBELLINE DESPERATE TO FIND A NEW AND PROFITABLE PRODUCT MIX FILL FLOOR SPACE AND CEMENT SUPPORT AMONG VENDORS PHARMOR INC WHICH IS IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS HAS FORMED UNUSUALLY CLOSE MERCHANDISING ALLIANCES WITH TRADE CREDITORS AND OTHER MANUFACTURERS IN EFFECT VENDORS TO A LARGE DEGREE ARE DICTATING HOW AND HOW MUCH OF THEIR MERCHANDISE IS CARRIED IN THE STORE FOR INSTANCE RUBBERMAID INC IS CREATING LARGE EVERYTHING RUBBERMAID DEPARTMENTS IN PHARMOR STORES AND GIBSON GREETINGS INC AN EXPANDED GREETING CARD SECTION FOR THE VENDORS LARGE DISPLAY AREAS MEAN POTENTIALLY HIGHER SALES AND A COMMITMENT TO HELP SUSTAIN A MAJOR CUSTOMER BUT FOR PHARMOR THE BENEFITS ARE MORE DUBIOUS THIS IS A LITTLE UNUSUAL SAYS SID DOOLITTLE OF MCMILLAN & DOOLITTLE A CHICAGO RETAIL CONSULTANT THE DANGEROUS THING IS IT COULD CREATE A STORE THAT MIGHT NOT BE THE CUSTOMER'S FAVORITE STORE IT MAY BE A STORE OF CONVENIENCE TO THE CREDITORS NOT THE CUSTOMER MOREOVER PHARMOR'S VIABILITY MAY DEPEND MORE ON ITS ABILITY TO SHRINK STORE SIZE THAN TO CHANGE ITS MERCHANDISE MIX RUBBERMAID WHICH IS BASED IN WOOSTER OHIO IS INCREASING TO 560 FROM 310 THE NUMBER OF RUBBERMAID ITEMS CARRIED IN PHARMOR STORES FILLING UP BOTH SIDES OF ENTIRE AISLES IN ITS SPECIAL RUBBERMAID DESIGNATED SECTION THOUGH NOT AN EXCLUSIVE SUPPLIER RUBBERMAID SUPPLIES MOST OF PHARMOR'S PLASTIC HOUSEWARES ACCORDING TO COURT PAPERS PHARMOR OWED RUBBERMAID 16 MILLION WHEN THE CHAIN FILED FOR BANKRUPTCYLAW PROTECTION LAST AUGUST GIBSON GREETINGS PHARMOR'S EXCLUSIVE GREETING CARD SUPPLIER IS BUILDING DISPLAY SECTIONS THAT ARE ROUGHLY EQUAL TO THE SIZE OF SMALL GIFT SHOPS IT'S KIND OF LIKE A STORE WITHIN A STORE SAYS PHARMOR SPOKESWOMAN CAROL ROBINSON PHARMOR GIBSON'S BIGGEST CUSTOMER OWED THE GREETING CARD COMPANY 6 MILLION AS OF LAST AUGUST ACCORDING TO COURT DOCUMENTS WE THINK WE'LL GAIN SALES AND PROFITS AND WE THINK IT'LL HELP PHARMOR SAYS SPOKESMAN WARD CAVANAUGH FROM GIBSON'S CINCINNATI HEADQUARTERS ANOTHER CREDITOR CLOSELY HELD CHARLES LEVY CO PHARMOR'S PRIMARY SUPPLIER OF BOOKS TAPES AND CDS IS IMPROVING MUSIC DISPLAY CASES TO MAKE TAPES AND CDS MORE ACCESSIBLE TO CUSTOMERS BUILDING MINIBOOKSTORES INSIDE PHARMOR STORES AND UPGRADING ITS BOOK SELECTIONS COURT PAPERS SHOW PHARMOR OWES CHICAGOBASED LEVY MORE THAN 9 MILLION CLOSELY HELD PHARMOR HAS BEEN IN A TAILSPIN SINCE ANNOUNCING LAST SUMMER IT WAS THE TARGET OF ALLEGED FRAUD AND EMBEZZLEMENT BY SEVERAL FORMER TOP EXECUTIVES WHO ARE ACCUSED OF TAMPERING WITH FINANCIAL STATEMENTS TO CONCEAL HUGE LOSSES SINCE AUGUST THE CHAIN HAS INCREASED ITS ESTIMATE OF THE FRAUD TO 499 MILLION FROM 350 MILLION CLOSED 86 STORES LEAVING 224 STILL OPERATING AND DISCLOSED THAT IT HAD LOSSES OF 200 MILLION IN THE YEAR ENDED JUNE 30 BY APRIL 15 THE COMPANY WILL SUBMIT A BUSINESS PLAN TO THE US BANKRUPTCY COURT IN YOUNGSTOWN DETAILING HOW MANY MORE STORES IT PLANS TO CLOSE AND HOW IT WILL OVERHAUL THE REST IN FEBRUARY COFOUNDER AND FORMER PRESIDENT MICHAEL I MONUS WAS INDICTED ON 129 FEDERAL FRAUD EMBEZZLEMENT AND TAX CHARGES FORMER CHIEF FINANCIAL OFFICER PATRICK B FINN AND FORMER VICE PRESIDENT OF FINANCE JEFFREY C WALLEY HAVE PLEADED GUILTY TO LESSER FEDERAL CHARGES IT HAS SINCE BECAME CLEAR THAT HEADY EARNINGS GROWTH AT PHARMOR ONCE CONSIDERED ONE OF THE FASTEST GROWING AND MOST EXCITING DEEPDISCOUNT CHAINS IN THE COUNTRY WAS INFLATED AND THAT PHARMOR'S PROFIT MARGINS WERE RAZORTHIN ALTHOUGH THE COMPANY INTENDS TO STICK WITH POWER BUYING WHICH MEANS STRIKING DEALS WITH MANUFACTURERS AND PASSING THE SAVINGS ON TO CUSTOMERS IN THE FORM OF LOW PRICES STORES WILL HAVE A NEW LOOK A NEW MANAGEMENT TEAM UNDER COFOUNDER AND CHAIRMAN DAVID S SHAPIRA BELIEVES EXISTING STORES ARE TOO LARGE AND WERE DESIGNED TO CARRY MORE PRODUCTS THAN THE COMPANY NOW WANTS TO STOCK THE CHAIN HAS ALREADY ELIMINATED ITS LUGGAGE OFFICE SUPPLY AND TEAM SPORTSWEAR DEPARTMENTS AND WANTS TO SHRINK ITS AVERAGE 65000SQUAREFOOT STORE BY NEARLY A THIRD BUT PHARMOR COULD FACE DIFFICULTIES IN SHRINKING ITSELF AS LANDLORDS MAY NOT BE WILLING TO RENT OUT PARTITIONEDOFF SECTIONS TO OTHER TENANTS ONE OPTION WAS RECENTLY UNVEILED IN A PROTOTYPE STORE IN BOARDMAN OHIO SUGGESTING MORE STORES WILL HAVE WIDER AISLES AND EXPANDED DISPLAY SECTIONS OF STAPLE PRODUCTS FRANK NEWMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF F&M DISTRIBUTORS INC BELIEVES RIVAL PHARMOR IS MAKING DEALS WITH MANUFACTURERS BECAUSE IT IS DESPERATE TO FILL EMPTY FLOOR SPACE MR NEWMAN BELIEVES VENDORS WILL MAKE MONEY FROM LARGER DISPLAYS BUT PHARMOR MIGHT NOT PHARMOR IS BASICALLY SAYING MY GOD WE'VE GOT TOO MUCH SPACE WHAT ARE WE GOING TO DO WITH IT' HOWEVER SIMPLY GIVING A VENDOR UNLIMITED SPACE DOESN'T MEAN IT'S THE BEST USE OF THAT SPACE SAYS MR NEWMAN SAYS FROM HIS WARREN MICH OFFICE BUT PHARMOR CITING RECENT CUSTOMER INTERVIEWS AND FOCUS GROUPS BELIEVES SHOPPERS PARTICULARLY WOMEN WHO REPRESENT A MAJORITY OF ITS CUSTOMERS ARE CLAMORING FOR THE PRODUCTS SOLD BY VENDORS NOW WORKING CLOSELY WITH MANAGEMENT TO PHARMOR VENDOR AGREEMENTS SIGNAL A VOTE OF CONFIDENCE FROM THE TRADE INDEED COSMETIC POWERHOUSE MAYBELLINE INC WHICH HAD A FALLING OUT WITH PREVIOUS PHARMOR MANAGEMENT OVER PRICING ABOUT THREE YEARS AGO RECENTLY REAPPEARED ON PHARMOR'S ROSTER OF VENDORS A NEW ARRANGEMENT WITH THE COUNTRY'S NO 2 COSMETICS MAKER FOLLOWED INTENSE NEGOTIATIONS WHICH ENDED LAST DECEMBER SAYS JOAN LOLLAR SPOKESWOMAN FOR MEMPHISBASED MAYBELLINE THESE MAJOR MANUFACTURERS SAYS DAVID SCHWARTZ PHARMOR PRESIDENT AND CHIEF OPERATING OFFICER HAVE A GREAT DEAL OF FAITH IN THE VIABILITY OF THE PHARMOR CONCEPT 9303080162 930308 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 AVID TECHNOLOGY INC INITIAL 28 MILLION COMMON SHARES VIA MORGAN STANLEY & CO ALBERTSON'S INC FIVE MILLION COMMON SHARES VIA GOLDMAN SACHS & CO BIOVAIL CORP INITIAL 25 MILLION COMMON SHARES VIA KIDDER PEABODY & CO COMMUNITY HEALTH COMPUTING CORP INITIAL TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES EMC CORP 45 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO ENERGY BIOSYSTEMS CORP INITIAL 24 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC ETHAN ALLEN INTERIORS INC 73 MILLION COMMON SHARES VIA KIDDER PEABODY GENEVA STEEL 135 MILLION OF SENIOR NOTES VIA CITICORP SECURITIES MARKETS INC INTUIT INC INITIAL 15 MILLION COMMON SHARES VIA MORGAN STANLEY MAGNETEK INC SECONDARY OFFERING OF SEVEN MILLION COMMON SHARES VIA SALOMON BROTHERS INC MARCUS CORP 15 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MAYFAIR SUPERMARKETS INC 75 MILLION OF SENIOR SUBORDINATED NOTES VIA BEAR STEARNS & CO MCGAW INC INITIAL 113 MILLION COMMON SHARES VIA ALEX BROWN PACIFIC LUMBER CO 195 MILLION OF SENIOR NOTES VIA SALOMON BROTHERS PAYLESS CASHWAYS INC INITIAL 28 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO PUBLIC SERVICE ELECTRIC & GAS CO 250 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS VIA COMPETITIVE BID ST JOHN KNITS INC INITIAL 68 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC SCANDINAVIAN BROADCASTING SYSTEM SA INITIAL THREE MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES SENSORMEDICS CORP INITIAL 17 MILLION COMMON SHARES VIA LEHMAN BROTHERS INC SPECIALTY PAPERBOARD INC INITIAL 2825000 COMMON SHARES VIA PAINEWEBBER INC TIPHOOK FINANCE CORP 150 MILLION OF NOTES VIA LEHMAN BROTHERS VICAL INC INITIAL THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC WYMANGORDON CO 80 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE OKLAHOMA 250 MILLION OF GENERAL OBLIGATION BONDS VIA COMPETITIVE BID NEW YORK STATE 208 MILLION OF VARIOUS GENERAL OBLIGATION BONDS VIA COMPETITIVE BID WASHINGTON SUBURBAN SANITARY DISTRICT MD 137 MILLION OF VARIOUS 1993 UNLIMITEDTAX REFUNDING BONDS VIA COMPETITIVE BID BOSTON WATER & SEWER COMMISSION MASS 101 MILLION OF 1993 SERIES A GENERAL REVENUE BONDS VIA A MERRILL LYNCH & CO GROUP CHELAN COUNTY PUBLIC UTILITY DISTRICT NO 1 WASH 297 MILLION OF REVENUE BONDS VIA A GROUP LED BY COMANAGERS PRAGER MCCARTHY & SEALY AND JOHN NUVEEN & CO INC CUYAHOGA COUNTY OHIO 140 MILLION OF GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP ILLINOIS TOLL ROAD AUTHORITY 334 MILLION OF SERIES 1993 A AND B REFUNDING REVENUE BONDS VIA A DONALDSON LUFKIN & JENRETTE GROUP MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO 450 MILLION OF SERIES 1993 POWER SUPPLY SYSTEM REFUNDING BONDS VIA A GOLDMAN SACHS & CO GROUP MASSACHUSETTS WATER RESOURCES AUTHORITY 450 MILLION OF REVENUE REFUNDING BONDS VIA A BEAR STEARNS & CO INC GROUP NEW ENGLAND EDUCATION LOAN MARKETING CORP 1033 MILLION OF SERIES 1993A STUDENT LOAN REFUNDING BONDS VIA A CHEMICAL SECURITIES INC GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 605 MILLION OF SERIES 1993 ELECTRIC REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP 9303080161 930308 RETAILING US FIRMS YELL OLE TO FUTURE IN MEXICO BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE WAY MALL DEVELOPER MEL SIMON EXPLAINED IT TO A RECENT GATHERING HERE OF 80 TOP US RETAILERS AND RESTAURATEURS THIS METROPOLIS IS ONE OF RETAIL'S LAST FRONTIERS A CITY OF 20 MILLION INHABITANTS WITH ONLY AS MUCH MALL SPACE AS TOLEDO OHIO MR SIMON WHO CREATED MINNEAPOLIS'S GARGANTUAN MALL OF AMERICA IS ABOUT TO UNDERTAKE THE MALLING OF MEXICO CITY HE PLANS TO LAUNCH THREE MILLIONSQUAREFOOT SHOPPING CENTERS EACH ANCHORED BY OUTLETS OF THE US'S DILLARD DEPARTMENT STORES INC AND JC PENNEY CO I THINK WE'LL DO MORE VOLUME THAN OUR AMERICAN STORES WILL DO AND I THINK GROWTH WILL BE QUICKER WILLIAM DILLARD SR CHAIRMAN OF DILLARD SAID AT THE SIMON GATHERING HIS CONFIDENCE IS UNDERSTANDABLE AT A TIME OF STAGNATION NORTH OF THE RIO GRANDE MEXICO'S RETAIL SALES HAVE BEEN GROWING AT TWICE THE RATE OF ITS RESURGENT ECONOMY AND COULD SOAR EVEN FURTHER WITH COMPLETION OF THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT PROSPECTS FOR HIGH GROWTH HAVE ALREADY ATTRACTED MAJOR PLAYERS SUCH AS KMART CORP AND PRICE CO WHICH HAVE FORMED JOINT VENTURES WITH MEXICAN RETAILERS THE NUMBER OF US FRANCHISES OPERATING IN MEXICO RANGING FROM DOMINO'S PIZZA INC TO DRYCLEAN USA INC HAS QUADRUPLED TO MORE THAN 100 SINCE 1990 IT'S THE FASHION TODAY TO SAY THAT WE'RE OPENING OPERATIONS IN MEXICO SAYS CHARLES SIEGEL CHAIRMAN OF SAN ANTONIOBASED 50OFF STORES INC WHICH PLANS TO OPEN TWO MEXICAN OUTLETS IN 1993 THERE ARE ALREADY SUCCESS STORIES IN THE CITY'S AFFLUENT POLANCO DISTRICT A SAM'S CLUB STORE PART OF WALMART STORES INC'S JOINT VENTURE WITH THE MEXICAN RETAILER CIFRA SA HAS RECORDED HIGHER SALES PER SQUARE FOOT THAN ANY OTHER SAM'S OUTLET ANYWHERE NEARBY AN ARBY'S INC RESTAURANT DOES 2 MILLION A YEAR IN SALES ALSO THE CHAIN LEADER YOU CAN GROW FAST HERE BECAUSE THIS IS VIRGIN TERRITORY EVEN BY THIRD WORLD STANDARDS SAYS MONTY WHITEHURST VICE PRESIDENT FOR FRANCHISE SALES AT PIZZA INN HE NOTES THAT SAO PAULO BRAZIL WITH A POPULATION ONEFIFTH OF MEXICO CITY'S HAS 12000 PIZZA RESTAURANTS MEXICO CITY HAS JUST SEVERAL HUNDRED BUT LIKE PIONEERS ANYWHERE US RETAILERS ENTERING MEXICO FACE ADVERSITY MR WHITEHURST SAYS THAT OPENING A PIZZA INN OUTLET IN MEXICO REQUIRES 17 PERMITS COMPARED WITH JUST TWO IN THE US BUREAUCRACY ISN'T THE ONLY OBSTACLE PRIME REAL ESTATE IN MEXICO CITY IS AS EXPENSIVE AS THAT ON NEW YORK'S FIFTH AVENUE MARKETING INFORMATION IS VIRTUALLY NONEXISTENT THOUSANDS OF OFFTHEBOOKS STREET MARKETS OFFER FIERCE COMPETITION WHILE INCURRING NO OVERHEAD AND THE RETAILING CULTURE IS A FORMIDABLE BARRIER IN A COUNTRY WHERE US FAST FOOD IS FARE FOR THE WEALTHY AND SUPERMARKETS CARRY AN ARRAY OF PRODUCTS RANGING FROM MILK AND EGGS TO OFFICE FURNITURE MANY US RETAILERS ARE BEING PUSHED HERE BECAUSE THERE'S NO GROWTH IN THE US NOT BECAUSE THEY HAVE ANY PARTICULAR KNOWLEDGE OF MEXICO SAYS JUAN HUERDO A FRANCHISING CONSULTANT HE PREDICTS THAT 10 TO 15 OF THE RECENTLY ARRIVED US FRANCHISES WILL EITHER BE SOLD OR TAKEN OVER BY THE US FRANCHISER THIS YEAR ALONE STILL MORE AND MORE US RETAILERS ARE CROSSING THE RIO GRANDE ATTRACTED BY A MARKET THAT IS WOEFULLY UNDERSTORED BY ALMOST ANY MEASURE MEXICO HAS JUST 550 SQUARE FEET OF RETAIL SPACE PER 1000 INHABITANTS COMPARED WITH 19000 SQUARE FEET PER 1000 IN THE US SAYS PRICE WATERHOUSE RETAIL EXPERT IRA KALISH THE POTENTIAL MARKET IS ENTICING HALF OF MEXICO'S POPULATION IS UNDER THE AGE OF 20 AND THOUGH PER CAPITA INCOME IS JUST 2200 A YEAR THE RICHEST 10 TO 15 OF MEXICANS ARE WEALTHIER THAN MOST AMERICANS A RECENT STUDY BY THE DEVELOPERS OF A 400STORE MALL CALLED INTERLOMAS REVEALED THAT 12 OF THE SURROUNDING RESIDENTS HAD INCOMES ABOVE 65000 AND THEY WEREN'T AVERSE TO CONSUMER DEBT 20 HAD FIVE TO SIX CARS TO HELP THEM TARGET POTENTIAL CUSTOMERS MOST US RETAILERS ENTERING MEXICO HAVE SOUGHT LOCAL PARTNERS EVEN THEN IT'S A STRUGGLE NO ONE SHOULD COME DOWN HERE EXPECTING A CAKEWALK SAYS BOB POLLOCK CHIEF OPERATING OFFICER OF DALLAS'S PAGE BOY MATERNITY WHICH HAS STARTED FIVE MEXICAN CLOTHING SHOPS DURING THE PAST 15 MONTHS THROUGH A LICENSING AGREEMENT WITH A LOCAL INVESTOR MR POLLOCK AND HIS PARTNER HAVE STRUGGLED FOR MARKETING INFORMATION YOU CAN'T EVEN GET ANYONE TO AGREE ON THE SIZE OF THE POPULATION HE SAYS FORTUNATELY MR POLLOCK KNOWS SPANISH AND IS ABLE TO CHAT UP CUSTOMERS HE HAS LEARNED THAT MOST OF PAGE BOY'S MEXICAN CUSTOMERS ARE HOUSEWIVES RATHER THAN THE PROFESSIONAL WOMEN WHO BUY HIS CLOTHES IN THE US SO HE FEATURES STYLES THAT ARE SPORTIER THAN WHAT SELLS IN THE US AND MEXICANS SNAP THEM UP AT TIMES THE INFORMALITY OF MEXICAN RETAILING HAS BEEN ADVANTAGEOUS TO MR POLLOCK ONE NEWLY OPENED MALL LET PAGE BOY RENT SPACE ON A TRIAL BASIS WHICH WOULD HAVE BEEN UNUSUAL IN THE US FEW PEOPLE CAME TO THE NEW MALL AND PAGE BOY PULLED OUT WITH NO LOSS MR POLLOCK WAS ONE OF THOSE ATTENDING THE SEMINAR LAST MONTH TO PROMOTE THE NEW MALLS PLANNED BY MELVIN SIMON & ASSOCIATES AND ITS MEXICAN PARTNER THOUGH IMPRESSED BY THE PROJECTS THE PAGE BOY EXECUTIVE APPROACHED THE TWODAY MEETING WITH A HEALTHY SKEPTICISM BORN OF EXPERIENCE WHEN A MEXICAN ARCHITECT WALKED THE RETAILERS THROUGH THE ARRAY OF BUILDING REQUIREMENTS IT SOON CAME OUT THAT ONE COMMON SAFETY PRECAUTION WASN'T MANDATORY A SPRINKLER SYSTEM MR POLLOCK FOUND THIS OUT THE HARD WAY WHEN A FIRE IN ONE MALL CAUSED SMOKE DAMAGE TO MERCHANDISE IN THE PAGE BOY STORE LATER THE ARCHITCT MENTIONED THE LABORIOUS PROCESS FOR INSTALLING TELEPHONE LINES IN STORES BUT WHEN CONSTRUCTION COSTS WERE MENTIONED IT WAS CLEAR THAT DOING BUSINESS IN MEXICO HAD ITS ADVANTAGES A HIGHCLASS FANCY STORE THE ARCHITECT SAID WOULD COST 55 PER SQUARE FOOT TO BUILD THAT IS HALF THE COST OF BUILDING A STORE IN DALLAS MR POLLOCK NOTED THEN CAME TIME FOR AUDIENCE QUESTIONS A RETAILER ASKED THE PROCEDURE FOR IMPORTING STORE FIXTURES NO PROBLEM THE ARCHITECT SAID JUST ALLOW A COUPLE OF WEEKS AND PAY A MAXIMUM 20 TARIFF MR POLLOCK HOWEVER KNEW THAT IMPORTING WASN'T ALWAYS SO EASY PAGE BOY RECENTLY HAD A SHIPMENT HELD UP AT THE BORDER FOR WEEKS WHEN THE MEXICAN GOVERNMENT SUDDENLY BEGAN ENFORCING A PREVIOUSLY IGNORED LABELING LAW THE RULES CAN CHANGE IN A MINUTE IN MEXICO HE SAID BUT PEOPLE HAVE TO FIND THINGS OUT FOR THEMSELVES TO THAT END THE RETAILERS BOARDED THREE BUSES FOR A TOUR OF MEXICO CITY'S MALLS BEGINNING WITH A 20YEAROLD SHOPPING CENTER CALLED PLAZA SATELITE AT SATELITE THE RETAILERS DISCOVERED THAT MEXICAN MALL SPACE WAS AT SUCH A PREMIUM THAT RETAILERS COMMONLY PAID KEY MONEY TO DEVELOPERS ONE US RETAILER WAS RUMORED TO HAVE PAID UP TO 1 MILLION FOR A SITE THE RETAILERS' CARAVAN THEN HEADED FOR THE CONSTRUCTION SITE OF A SIMON MALL PROJECT IN WHAT WAS BILLED AS THE WEALTHIEST NEIGHBORHOOD IN LATIN AMERICA ON THE WAY THE BUSES BUMPED THROUGH A WORKINGCLASS NEIGHBORHOOD OF CRAMPED BLOCK HOUSES WHERE RAGAMUFFIN CHILDREN PLAYED SOCCER ON THE STREET THEY DON'T LOOK LIKE CUSTOMERS MOANED ONE RETAILER THE LAST STOP WAS PABELLON POLANCO AN ELEGANT NEW MALL WITH LOTS OF GLASS AND MARBLE WHAT THE GROUP SAW HERE COMPENSATED FOR MANY OF THE DRAWBACKS OF MEXICAN RETAILING PRODUCT PRICES ARE MUCH HIGHER THAN AT HOME SAID GREGORY A FISHER ASSISTANT VICE PRESIDENT AT THE WHEREHOUSE A CALIFORNIABASED CHAIN OF RECORD SHOPS AND COMPARISON SHOPPING IS NOT IN VOGUE IN ONE MALL YOU FIND A 30 PRICE VARIATION FOR THE SAME PRODUCT THAT TELLS ME SOMEONE HERE HAS MONEY THAT THEY'RE VERY EAGER TO GET RID OF I LIKE IT SO DID OTHERS SIMON SAYS THE RESPONSE FROM THE MALL MERCHANTS HAS BEEN POSITIVE AND IT PLANS TO HAVE TWO OF THE MEXICO CITY MALLS OPERATING BY 1995 9303080160 930308 MARKETING BY VALERIE REITMAN MARKETERS TAKE NANNYGATE TO THE BANK DOMESTICHELP AND PAYROLLSERVICE COMPANIES TRY TO CAPITALIZE ON THE BROUHAHA OVER ZOE BAIRD'S DOMESTICHELP WOES TAKE THIS ADVERTISEMENT IN A CALIFORNIA NEWSPAPER YOU NEVER KNOW ONE DAY YOU MAY BE APPOINTED TO A CABINET POST MERRY MAIDS CAN MAKE YOUR CONFIRMATION HEARING A BREEZE THE FRANCHISER BASED IN OMAHA NEB ALSO ARGUES IN ITS ADS THAT THE SERVICE SPARES CLIENTS THE PAPERWORK HASSLES REQUIRED FOR MERRY MAIDS' MOST COMMON COMPETITORS INDEPENDENT CLEANING PEOPLE INQUIRIES TO MERRY MAIDS' 632 FRANCHISEES HAVE JUMPED 15 SINCE NANNYGATE HIT THE MOST CALLS HAVE COME FROM LAWYERS AND GOVERNMENT WORKERS MOST OF THESE TWOINCOME PROFESSIONAL FAMILIES ARE HIRING PEOPLE BECAUSE THEY DON'T HAVE TIME SAYS MICHAEL ISAKSON PRESIDENT OF MERRY MAIDS A UNIT OF SERVICEMASTER THEN THEY LOOK AT ALL THE PAPERWORK THAT NEEDS TO BE DONE TO BE LEGAL IF THEY PAY SOMEONE MORE THAN 50 A QUARTER CALLERS HAVE BECOME LESS PRICEORIENTED AND MORE CONSCIOUS OF OBEYING THE LAW MR ISAKSON SAYS BEFORE MS BAIRD'S TROUBLES CAME TO LIGHT MOST CALLERS INQUIRED ONLY WHETHER THE MAID SPOKE ENGLISH NOW 90 ALSO ASK IF THE COMPANY PAYS SOCIAL SECURITY TAXES ON ITS EMPLOYEES WHICH IT DOES PATRICK O'DONNELL OWNER OF THE TORRANCE CALIF MERRY MAIDS FRANCHISE HAS SEEN HIS BUSINESS JUMP 10 AND SAYS HE IS PARTICULARLY GRATEFUL TO MS BAIRD I'D DO HER HOUSE FOR FREE ADVANTAGE PAYROLL SERVICES OF AUBURN MAINE IS ENCOURAGING ITS FRANCHISEES TO RENEW CONTACTS WITH NANNYREFERRAL AGENCIES SMALL BUSINESSES AND HOUSEHOLDS PAY THE COMPANY 10 TO 15 EVERY TWO WEEKS TO ISSUE CHECKS AND HANDLE ALL THE TAX FILINGS AND PAYMENTS FOR EMPLOYEES PAYCHEX A ROCHESTER NY PAYROLLSERVICE COMPANY SAYS INQUIRIES HAVE JUMPED 60 BUT IT OPTED NOT TO EXPLOIT THE MARKETING OPPORTUNITY SOME MANAGERS JOKED ABOUT DOING A CAMPAIGN ALONG THE LINES OF ZOE GOT CAUGHT YOU MAY BE NEXT SAYS DAVID KLEIN A PAYCHEX SALES MANAGER BUT BY THE TIME THEY GOT THE PROMOTION TOGETHER HE SAYS IT WOULD HAVE BEEN OLD NEWS THE DRYER GETS A TURN AS DRY CLEANER MCLAUGHLIN INC A FAMILY BUSINESS IN BROOKLYN CONN HOPES PEOPLE WILL USE ITS SWEATER FRESH SPRAY INSTEAD OF PAYING PROFESSIONALS TO CLEAN LIGHTLY SOILED SWEATERS AND SILKS WHEN EXPOSED TO THE WARMTH OF A CLOTHES DRYER FOR TWO MINUTES THE PRODUCT'S PLANT OILS ENCAPSULATE LIGHT SOIL AND ODORS REMOVING THEM FROM THE GARMENT THE COMPANY SAYS JIM MCLAUGHLIN THE COMPANY'S FOUNDER SAYS HE CAME UP WITH THE IDEA FOR PURE REASONS OF ECONOMY FROM OUR OWN HOUSEHOLD HIS THREE KIDS ALWAYS SEEMED TO HAVE PILES OF SWEATERS GOING TO THE DRY CLEANER THAT DIDN'T SEEM THAT DIRTY IN THE FIRST PLACE A CHEMIST AND THE FORMER HEAD OF NEWPRODUCT DEVELOPMENT FOR LEVER BROTHERS MR MCLAUGHLIN HAS DEVELOPED OTHER PRODUCTS ON HIS OWN INCLUDING CARPET FRESH A CARPET DEODORIZER AND CLEANER SWEATER FRESH WHICH HAS A STRONG WOODSY FRAGRANCE IS MADE FROM A SUNFLOWEROIL BASE AND OILS FROM FLOWERS NOT SURPRISINGLY THE DRYCLEANING INDUSTRY IS SKEPTICAL ABOUT SWEATER FRESH IT'S PROBABLY A MASKING AGENT SAYS WILLIAM FISHER SENIOR VICE PRESIDENT OF THE INTERNATIONAL FABRICARE INSTITUTE IN SILVER SPRING MD THE DRYCLEANING INDUSTRY'S TRADE GROUP WHILE TUMBLING CAN REMOVE SOME DIRT PARTICLES IT'S LIKELY TO REMOVE LITTLE IF ANY TRUE SOIL LIKE PERSPIRATION OR BODY OILS MR MCLAUGHLIN ACKNOWLEDGES THAT SWEATER FRESH ISN'T A SUBSTITUTE FOR DRY CLEANING BUT SAYS THAT AS PROMISED IT REMOVES LIGHT SOIL AND ODORS CLAIMS BACKED UP BY US TESTING AN INDEPENDENT COMPANY THOUGH SWEATER FRESH WON'T TAKE OUT STAINS IT WON AN OUTSTANDING RATING FROM ACUPOLL A FIRM THAT ASSESSES CONSUMER REACTION TO NEW PRODUCTS IT IS AVAILABLE NATIONWIDE IN HEALTHFOOD STORES AND MCLAUGHLIN HAS BEGUN DISTRIBUTING IT IN SOME NEW ENGLAND SUPERMARKETS THE MARKET FOR HOME DRY CLEANING WHICH MAY HAVE BIG POTENTIAL HASN'T BEEN TAPPED PROCTER & GAMBLE RECENTLY RECEIVED A PATENT ON A DRYCLEANING FLUID THAT REMOVES WRINKLES AND HELPS RETAIN SHAPE WHICH COULD BE TARGETED FOR HOME USE BEYOND NEW AND IMPROVED IN THE LEXICON OF MARKETING LIES ULTRA CONSUMERPRODUCTS COMPANIES HAVE INTRODUCED A SLEW OF ULTRA PRODUCTS IN THE PAST YEAR KIMBERLYCLARK TROTTED OUT HUGGIES ULTRA TRIM DIAPERS WHILE PROCTER & GAMBLE HAS ROLLED OUT ULTRA SOFT PUFFS TISSUES CHARMIN ULTRA TOILET PAPER AND NEW IVORY ULTRASAFE SKIN CARE BAR WHILE ULTRA ONCE SEEMED TO IMPLY THE BEST OR THE MOST IT NOW HAS AN ADDED CONNOTATION SUPERCONCENTRATED P&G USES THE ULTRA TAG FOR ITS CONDENSED LIQUID AND POWDER DETERGENTS WHICH PACK MORE PUNCH PER SCOOP INCLUDING CHEER ERA TIDE AND IVORY SNOW AS WELL AS DOWNY FABRIC SOFTENER ITS LATEST INTRODUCTION ULTRA SPIC AND SPAN AND ULTRA DRY PAMPERS ARE IN TEST MARKETS SHOPPERS DON'T SEEM TO MIND THE NEW ULTRA LABEL THOUGH THEY DON'T SEEM TO NOTICE IT EITHER SAYS CONSUMER NETWORK PRESIDENT MONA DOYLE THEY DO COMPLAIN LONG AND LOUD HOWEVER ABOUT NEW AND IMPROVED BOASTS THAT DON'T QUITE LIVE UP TO THEIR BILLING WHERE TO LOOK FOR PERFUME THE JEWELRY STORE OF COURSE SOLITAIRE BILLED AS THE SCENT OF A DIAMOND IS BEING ROLLED OUT AT JEWELERS NATIONWIDE BY HONORA JEWELRY NEW YORK REVELLMONOGRAM WHICH MAKES PLASTIC MODEL KITS OFFERS MULTIMEDIA CDROM SOFTWARE TO HELP GUIDE CONSUMERS THROUGH ASSEMBLY AND LET THEM PLAY GAMES WITH VIDEO VERSIONS OF THE MODELS BACK PORCH BRANDS ASHLAND ORE INTRODUCES OREGON CHIPS TOFU SNACKS IN CHEDDAR GARLIC/PEPPER AND HERB & TOMATO FLAVORS 9303080158 930308 SUPERCUTS EXPECTS TO POST SHARP RISE IN 4THQUARTER NET SAN RAFAEL CALIF SUPERCUTS INC EXPECTS TO REPORT THAT NET INCOME FOR THE FOURTH QUARTER ROSE SHARPLY TO BETWEEN 18 CENTS AND 20 CENTS A SHARE DAVID LIPSON CHAIRMAN AND CHIEF EXECUTIVE SAID WALL STREET HAD BEEN ANTICIPATING EARNINGS IN THAT RANGE FOR THE CHAIN OF FRANCHISED HAIRCUT SHOPS MR LIPSON'S PROJECTION INDICATES THAT SUPERCUTS' NET FOR THE QUARTER JUMPED BETWEEN 31 AND 46 TO BETWEEN 17 MILLION AND 19 MILLION HE SAID REVENUE IS EXPECTED TO CLIMB 10 TO 12 TO BETWEEN 89 MILLION AND 91 MILLION IN THE YEAREARLIER QUARTER SUPERCUTS HAD NET OF 13 MILLION OR 15 CENTS A SHARE ON REVENUE OF 81 MILLION THE FIGURES HAVE BEEN ADJUSTED FOR 3FOR2 STOCK SPLIT PAID IN APRIL 1992 AND REFLECT AN AFTERTAX CHARGE OF 894000 FOR EARLY RETIREMENT OF DEBT FOR THE FULL YEAR MR LIPSON SAID EARNINGS WILL BE WITHIN ANALYSTS' PROJECTED RANGE OF 68 CENTS TO 70 CENTS A SHARE THAT INDICATES THAT NET FOR THE FULL YEAR SURGED 56 TO 61 TO BETWEEN 64 MILLION AND 66 MILLION REVENUE FOR THE YEAR IS EXPECTED TO RISE 10 TO 12 TO BETWEEN 353 MILLION AND 36 MILLION LAST YEAR SUPERCUTS EARNED 41 MILLION OR 55 CENTS A SHARE ADJUSTED FOR THE STOCK SPLIT AND THE DEBT REPAYMENT CHARGE REVENUE IN 1991 WAS 321 MILLION MR LIPSON SAID THE STRONG RESULTS REFLECT SUPERCUTS'S CONTINUED EXPANSION AND INCREASING MARKET CONCENTRATION IN PIVOTAL HAIR MARKETS SUCH AS LOS ANGELES AMONG OTHER FACTORS HE SAID THE COMPANY ADDED 105 STORES IN 1992 BRINGING ITS TOTAL TO 766 HE SAID STORE GROWTH FOR THE YEAR WAS WELL ABOVE THE 80 TO 100 STORES THE COMPANY HAD EXPECTED TO OPEN IN 1992 SUPERCUTS WHICH IS ONE OF ONLY TWO PUBLICLY TRADED HAIRCUT CHAINS EXPECTS TO ADD 115 TO 125 STORES THIS YEAR HE SAID SUPERCUTS WENT PUBLIC IN OCTOBER 1991 AT 733 A SHARE ADJUSTED FOR THE STOCK SPLIT IN OVERTHECOUNTER TRADING FRIDAY SUPERCUTS SHARES FELL 25 CENTS TO 14 9303080157 930308 LETTERS TO THE EDITOR PARADISE LOST TO THE STINKING AUTO WITH REGARD TO CALIFORNIA'S MIDDLE CLASS THE CALIFORNIA GNATCATCHER AND THE PLANNED SAN JOAQUIN HILLS TOLLWAY YOU GOT IT RIGHT IN YOUR FEB 12 EDITORIAL ENDANGERED TRAFFIC RELIEF WHEN YOU CONCLUDED WITH THIS IS NOT THE ROAD TO A BALANCED RESOURCE POLICY HOWEVER YOU ARE DEAD WRONG REGARDING THE REASONS IT IS NOT A BALANCED POLICY NINETY PERCENT OF CALIFORNIA'S WETLAND AND COASTAL SAGE SCRUB HABITATS HAVE BEEN DESTROYED IRREVOCABLY BY SHORTSIGHTED PLANNING AND VORACIOUS CONSTRUCTION MANY CALIFORNIANS OPPOSE THE TOLL ROAD PROJECT ON GROUNDS THAT OUR STATE'S NATURAL RESOURCE BALANCE HAS BEEN GROSSLY SKEWED IN FAVOR OF THE MIGHTY ENGINE OF CIVILIZATION THE STINKING AUTOMOBILE SOUTHERN CALIFORNIA'S QUALITY OF LIFE IS NOT ENHANCED BY YET ANOTHER HIGHWAY RATHER IT IS DIMINISHED WITH EVERY NEW PROJECT THAT LAYS PAVEMENT OVER ENVIRONMENTALLY SENSITIVE COASTAL WILDERNESS OF WHICH PRECIOUS FEW CONTIGUOUS ACRES REMAIN COASTAL SAGE SCRUB AND THE CALIFORNIA GNATCATCHER MAY NOT HAVE PRETTY NAMES BUT I ASSURE YOU THAT THEY ARE BEAUTIFUL SIGHTS TO THOSE OF US WHO GROW WEARY OF VIEWING AND BREATHING THE SCUM OF CONCRETE HIGHWAYS WE HAVE TOO MANY ROADS WHERE SONGBIRDS USED TO BE THE LOSS OF NATURAL HABITAT IS MADE MORE CRUEL WHEN ONE NOTICES A HUGE NEW DEVELOPMENT AUDACIOUSLY CALLED LAGUNA AUDUBON ITS DEVELOPER NAMED THE HOUSING PROJECT'S STREETS AFTER BIRDS YES THE LEAST BELL'S VIREO IS NOT ONLY AS YOU POINT OUT AN ENDANGERED SPECIES IT IS THE NAME OF A NEW ROAD WE ARE NOT NIMBYMINDED JUST UNWILLING TO LET DEVELOPERS AND ROAD BUILDERS HAVE THEIR WAY WITH THE ENTIRE STATE EVEN ARDENT PROJECT SUPPORTERS ARE BEGINNING TO DOUBT THE NEED FOR THIS EIGHTLANE TOLLWAY SAID PROF G J FIELDING FORMER DIRECTOR OF THE INSTITUTE OF TRANSPORTATION STUDIES FOR THE UNIVERSITY OF CALIFORNIA IN COMMENTARY PUBLISHED RECENTLY BY THE LOS ANGELES TIMES MR FIELDING SAID HE FEARS THE TOLLWAY WILL BE SO LITTLE USED THAT IT WILL BECOME A FINANCIAL DISASTER CONTENTION SURROUNDING THE PLANNED SAN JOAQUIN HILLS TOLLWAY IS NOT ABOUT HALTING GROWTH OR STOPPING THE MIGHTY ENGINES OF CIVILIZATION IT IS ABOUT BANKING PRECIOUS NATURAL RESOURCES SO THAT OUR GRANDCHILDREN AND THEIR GRANDCHILDREN MIGHT ENJOY COASTAL TRANSPORTATION SYSTEMS IN CONCERT WITH NOT IN PLACE OF THE WORTHWHILE RETURNS OF WILDERNESS 9303080156 930308 FOREIGN EXCHANGE AS FRENCH ELECTIONS NEAR TRADERS BET ON NEW GOVERNMENT'S STANCE ON ERM BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH FRANCE'S PARLIAMENTARY ELECTIONS TWO WEEKS AWAY SPECULATORS HAVE ALREADY PLACED BETS THAT A NEW GOVERNMENT WILL ABANDON THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM AND DEVALUE THE FRANC BUT SOME CURRENCY ANALYSTS BELIEVE THE SPECULATORS ARE GOING TO LOSE THOSE BETS AND THAT THEY SAY WOULD BE GOOD NEWS FOR THE DOLLAR THERE IS EVERY REASON TO EXPECT THE FRENCH FRANC TO REMAIN INTACT AND FOR GERMANY TO REDUCE INTEREST RATES IF NEED BE TO KEEP THE ERM INTACT SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON AN UNSCATHED FRANC AND A STABLE ERM WOULD FUEL THE DOLLAR'S GAINS ANALYSTS SAY BECAUSE THE BUNDESBANK WOULD CONTINUE TO SUPPORT THE FRANC WITH LOWER RATES THAT IN TURN WOULD HELP SHRINK THE GAP BETWEEN US AND GERMAN RATES JUST FRIDAY THE BUNDESBANK LOWERED A KEY MONEYMARKET RATE AND MANY MARKET PLAYERS EXPECT A REDUCTION IN THE BANK'S OFFICIAL LENDING RATES WHEN ITS POLICY MAKING COUNCIL NEXT MEETS ON MARCH 19 TWO DAYS BEFORE THE FRENCH ELECTION WORD THAT THE BUNDESBANK HAD CUT THE INTEREST RATE FOR SECURITIES REPURCHASE AGREEMENTS STARTED A WAVE OF DOLLAR BUYING FRIDAY THE DOLLAR SURGED LATER IN THE DAY ON NEWS THAT US NONFARM PAYROLLS ROSE 365000 IN FEBRUARY A FAR HIGHER NUMBER THAN ANALYSTS HAD EXPECTED LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16684 MARKS AND 11763 YEN UP FROM 16385 MARKS AND 11678 YEN THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11746 YEN AND AT 16698 MARKS IN THE DAYS AHEAD OF THE FRENCH ELECTION MOST OF THE ERMRELATED ACTIVITY WILL BE IN CROSSTRADING AMONG NONDOLLAR CURRENCIES ANALYSTS SAY DEALERS HAVE BEEN SELLING FRANCS AGAINST MARKS IN ANTICIPATION OF THE ELECTION A BIT OF ADDITIONAL EMS TURMOIL IS LIKELY TO HELP THE DOLLAR BUT AN IMPROVING US EMPLOYMENT PICTURE AND FALLING GERMAN INTEREST RATES WILL HAVE FAR GREATER IMPACT THE DOLLAR IS SELFPROPELLED AND WE BELIEVE IT WILL CONTINUE IN ITS TREND UPWARD AGAINST THE MARK SAYS FUAD KHADDER REGIONAL TREASURER FOR THE AMERICAN EXPRESS BANK THE BET AGAINST THE FRANC IS BASED ON DOUBTS THAT FRANCE'S CONSERVATIVE OPPOSITION PARTIES WHICH ARE EXPECTED TO WIN THE ELECTIONS ARE COMMITTED TO A STRONG CURRENCY THAT COMMITMENT WHICH HAS KEPT FRENCH INTEREST RATES HIGH IS ECONOMICALLY AND POLITICALLY COSTLY BUT IT'S MORE LIKELY THAT A NEW FRENCH GOVERNMENT WILL DO WHAT'S NECESSARY TO KEEP THE FRANC WITHIN THE ERM ANALYSTS SAY ESPECIALLY SINCE ITS JOB SHOULD BE EASIER AS GERMAN RATES FALL IT'S IN THE BUNDESBANK'S INTERESTS TO EASE PRESSURE ON THE FRANC ANALYSTS SAY THE LONGTERM BENEFITS FOR GERMANY OF A STABLE EXCHANGE RATE SYSTEM ARE WORTH KEEPING SAYS MR O'HANLON OF KIDDER PEABODY THE ONLY PRESSURE IS SPECULATIVE UNPREDICTABLE EXCHANGE RATES CAN BOOST IMPORT PRICES AND DISCOURAGE INVESTMENT HE NOTES IF FRANCE ABANDONED THE ERM THE RESULTING VOLATILITY WOULD REIN THE DOLLAR IN SLIGHTLY ANALYSTS SAY WITH EUROPEAN COUNTRIES PURSUING INDEPENDENT MONETARY POLICY AND THE BUNDESBANK LIBERATED FROM RESPONSIBILITY FOR ITS ERM PARTNERS GERMAN RATES MIGHT FALL MORE SLOWLY A SUCCESSFUL DEFENSE OF THE FRANC WON'T ERADICATE ERM SPECULATION MARKET PLAYERS WILL BEGIN DEBATING WHETHER WEAKER CURRENCIES LIKE THE PESETA AND PORTUGUESE ESCUDO COULD SURVIVE IN A LEANER SYSTEM OF STRONG CURRENCIES PREDICTS KEVIN LOGAN CHIEF ECONOMIST AT SWISS BANK CORP IF ITALY DOESN'T REENTER THE ERM SPAIN WILL BE UNDER PRESSURE TO WITHDRAW OR DEVALUE HE SAYS SPAIN COMPETES FOR TRADE WITH ITALY WHICH IS ENJOYING THE BENEFITS OF A FLOATING LIRA ATTENTION AFTER THE ELECTION COULD TURN TO ITALY AND SPAIN MR LOGAN SAYS 9303080155 930308 ECONOMY DEMOCRATS PEG 55 BILLION MORE IN SPENDING CUTS AGREEMENT COULD ENABLE BUDGET PLAN TO MOVE IN CONGRESS THIS WEEK BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS HAVE TENTATIVELY AGREED ON ADDITIONAL SPENDING CUTS OF AS MUCH AS 55 BILLION OVER FIVE YEARS TO ENABLE PRESIDENT CLINTON'S BUDGET PROPOSAL TO MOVE FORWARD IN CONGRESS THIS WEEK WE HAVE MADE SIGNIFICANT PROGRESS SAID HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN MR SABO LIKE HIS SENATE COUNTERPART JAMES SASSER OF TENNESSEE HOPES TO WIN COMMITTEE APPROVAL OF A BUDGET RESOLUTION BY MIDWEEK SO THAT DEMOCRATIC LEADERS CAN MEET THEIR GOAL OF PASSAGE BY THE FULL CONGRESS BEFORE THE APRIL 2 RECESS THE SEARCH FOR MORE CUTS HAS BEEN PROPELLED BOTH BY CONSTITUENT PRESSURE AND BY CONGRESSIONAL BUDGET OFFICE ESTIMATES LAST WEEK SHOWING THAT MR CLINTON'S TAX AND SPENDING PROPOSALS WOULD FALL ABOUT 67 BILLION SHORT OF HIS TARGET OF REDUCING THE DEFICIT BY 473 BILLION OVER FIVE YEARS WHILE MODERATE AND CONSERVATIVE DEMOCRATS CONTINUE TO SEEK CUTS IT APPEARS THE PARTY LEADERSHIP MAY BE ABLE TO AVOID A CONFRONTATION IN THE INITIAL LEGISLATIVE TEST FOR THE ADMINISTRATION'S ECONOMIC BLUEPRINT THERE'S SOME MOVEMENT IN THE RIGHT DIRECTION THAT PROBABLY WOULD ALLOW ME TO SUPPORT THE BUDGET RESOLUTION SAID CONSERVATIVE DEMOCRATIC SEN JAMES EXON OF NEBRASKA A SWING VOTE ON THE BUDGET COMMITTEE IN MEETINGS LATE LAST WEEK HOUSE BUDGET COMMITTEE DEMOCRATS TENTATIVELY AGREED TO CUT ROUGHLY 37 BILLION IN FISCAL 1994 AND 55 BILLION OVER FIVE YEARS BY TRIMMING CERTAIN PROGRAMS AND DELAYING SOME OF THE PRESIDENT'S PROPOSED INCREASES IN INVESTMENT SPENDING THE HOUSE PANEL AIMS TO ACHIEVE 140 BILLION IN DEFICIT REDUCTION IN FISCAL 1997 WHICH WOULD PUSH THE DEFICIT BELOW 200 BILLION AS MR CLINTON'S TERM DRAWS TO A CLOSE MEMBERS PLAN TO MEET WITH THE PRESIDENT TODAY TO DISCUSS THE COMPROMISE BUT WHITE HOUSE AIDES HAVE BEEN CLOSELY INVOLVED IN THE NEGOTIATIONS AND AREN'T EXPECTED TO HAVE MAJOR OBJECTIONS THIS CLEARLY FOLLOWS THE OUTLINES OF THE PRESIDENT'S BUDGET SAID REP BARNEY FRANK D MASS IN THEIR OWN CAUCUSES SENATE BUDGET COMMITTEE DEMOCRATS HAVE AGREED TO SOME 34 BILLION IN 1994 CUTS AND 40 BILLION OVER FIVE YEARS TOWARD ELIMINATING THE SHORTFALL IDENTIFIED BY THE CBO THE SENATE PANEL ALSO ASSUMES 17 BILLION IN SAVINGS FROM REFORMED DEBT MANAGEMENT POLICIES THAT THE CBO DIDN'T ESTIMATE TO CLOSE THE REST OF THE GAP TOWARD MR CLINTON'S LONGTERM DEFICIT REDUCTION GOAL THE COMMITTEE IS LIKELY TO CALL FOR ADDITIONAL REVENUE BY INCREASING SOME USER FEES FOR GOVERNMENT SERVICES AND CLOSING SOME TAX LOOPHOLES WHILE FURTHER TAX INCREASES WOULD BE VULNERABLE POLITICALLY A BUDGET RESOLUTION IS ONLY A BLUEPRINT WHOSE DETAILS WILL ULTIMATELY BE RESOLVED BY TAXWRITING AND APPROPRIATIONS COMMITTEES LATER IN THE YEAR THAT LENDS A CERTAIN UNREALITY TO THE RUSH FOR IMPROVED DEFICITREDUCTION NUMBERS THE HOUSE BUDGET PANEL FOR EXAMPLE IS EXPECTED TO SPECIFY ONLY ABOUT HALF OF THE CUTS IT OSTENSIBLY WILL APPROVE NONETHELESS DEMOCRATIC MODERATES AND CONSERVATIVES APPEAR SUFFICIENTLY IMPRESSED BY THE PARTY LEADERSHIP'S COMMITMENT TO DEFICIT REDUCTION THAT THEY MAY FORGO OFFERING ALTERNATIVE PROPOSALS AT LEAST IN THE BUDGET COMMITTEES REP TIM PENNY D MINN AN OUTSPOKEN FISCAL CONSERVATIVE DESCRIBED THE CUTS AGREED TO SO FAR AS BEING PRETTY CLOSE TO WHAT WE WERE HOPING FOR INDEED ENTHUSIASM FOR BUDGET CUTS THROUGHOUT THE PARTY IS STRONG ENOUGH THAT IT'S BEGINNING TO GRATE ON SOME DEMOCRATIC LIBERALS OUTSIDE THE CONGRESS THE REV JESSE JACKSON INTERVIEWED YESTERDAY ON NBCTV'S MEET THE PRESS COMPLAINED THAT LIBERAL LAWMAKERS WHO WANT TO BE ON THE SOCIAL REGISTER ARE ACQUIESCING IN CUTS THAT WOULD DAMAGE EDUCATION AND SOCIAL PROGRAMS A SPEECH LATE LAST WEEK BY SENATE ARMED SERVICES CHAIRMAN SAM NUNN OF GEORGIA APPEARS TO HAVE DISCOURAGED ATTEMPTS TO MAKE UP THE DEFICITREDUCTION SHORTFALL BY CUTTING THE PENTAGON EVEN MORE THAN MR CLINTON HAS PROPOSED THE INFLUENTIAL MR NUNN CALCULATES THAT THE PRESIDENT WOULD CUT 122 BILLION FROM DEFENSE THROUGH 1997 TWICE AS MUCH AS HE CALLED FOR DURING HIS CAMPAIGN AND WARNED OTHER DEMOCRATS HE WOULD BE FIGHTING TO STAVE OFF ADDITIONAL REDUCTIONS SENATE REPUBLICANS STILL SEARCHING FOR A STRATEGY TO OPPOSE THE ADMINISTRATION WILL MEET EARLY THIS WEEK TO DISCUSS AN ALTERNATIVE BUDGET PREPARED BY SEN PETE DOMENICI R NM THE TENTATIVE PROPOSAL WOULD ACHIEVE MORE THAN 400 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS THROUGH SPENDING CUTS INCLUDING SPECIFIED REDUCTIONS IN SOCALLED ENTITLEMENTS AND OTHER PROGRAMS THE PLAN ACCEPTS SOME ADDITIONAL TAXES ON THE WEALTHY BUT THOSE INCREASES ARE OFFSET BY TAX CUTS TO SPUR INVESTMENT THE PROPOSAL ALSO ALLOWS SELECTED INCREASES IN POPULAR PROGRAMS SUCH AS HEAD START AND CHILDREN'S IMMUNIZATION AND FINANCES ADDITIONAL TRANSPORTATION INITIATIVES BY EXTENDING A GAS TAX INCREASE DUE TO EXPIRE IN 1995 ACTION ON THE BUDGET RESOLUTION IS CRUCIAL IF THE ADMINISTRATION IS TO WIN PASSAGE OF ITS ECONOMIC STIMULUS BILL BEFORE THE APRIL RECESS DEMOCRATS WANT THE TWO MEASURES TO MOVE IN TANDEM AND IN ANTICIPATION OF THE BUDGET DELIBERATIONS THE HOUSE APPROPRIATIONS COMMITTEE WILL TAKE UP THIS WEEK THE PRESIDENT'S PLAN TO ADD NEARLY 165 BILLION IN NEW SPENDING FOR THE FISCAL YEAR ENDING SEPT 30 THE SAME BILL WOULD RELEASE AN ADDITIONAL 324 BILLION FROM FEDERAL HIGHWAY AND AIRPORT CONSTRUCTION TRUST FUNDS TO START PUBLIC WORKS PROJECTS THIS YEAR AND 33 BILLION WOULD BE ADDED TO GOVERNMENT LOAN PROGRAMS INCLUDING 258 BILLION IN LOAN GUARANTEES BY THE SMALL BUSINESS ADMINISTRATION THE ADMINISTRATION'S STIMULUS PACKAGE HAS ALREADY CLEARED SUBCOMMITTEES VIRTUALLY UNTOUCHED BUT MINOR ADJUSTMENTS ARE EXPECTED TO BE MADE IN THE FULL COMMITTEE THESE ARE NEEDED TO BRING THE TOTAL SPENDING MORE IN LINE WITH BUDGET RESTRICTIONS THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9303080154 930308 CANADA'S NDP HURT AS WORKERS CUT POLITICAL TIES MOVE COULD BOOST CHANCES OF THE LIBERAL PARTY IN THIS YEAR'S ELECTION BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL IN THE STRONGEST SIGN OF DISSENT YET AMONG THE TRADITIONAL BACKERS OF CANADA'S NEW DEMOCRATIC PARTY ONE OF THE COUNTRY'S BIGGEST UNION LOCALS HAS BROKEN TIES WITH THE PARTY THE MOVE ULTIMATELY COULD HURT THE COUNTRY'S RULING PROGRESSIVE CONSERVATIVE PARTY IN FEDERAL ELECTIONS DUE LATER THIS YEAR THAT'S BECAUSE ANY EROSION IN SUPPORT FOR THE SOCIALIST NDP IS LIKELY TO AID THE LIBERAL PARTY NOT THE CONSERVATIVES MEMBERS OF THE UNION LOCAL PART OF THE POWERFUL CANADIAN AUTO WORKERS SAY THEY ARE CONCERNED THAT MANY OF THE POLICIES OF ONTARIO PREMIER BOB RAE'S NDP GOVERNMENT ARE LEADING TO HIGHER PROVINCIAL DEBT HIGHER TAXES AND A GREATER RISK THAT FOREIGN COMPANIES WILL AVOID INVESTING IN THE PROVINCE POLITICAL SETBACK THE MOVE IS A POLITICAL SETBACK FOR THE NDP WHICH IS TRYING TO BOOST ITS REPRESENTATION IN CANADA'S HOUSE OF COMMONS FROM ABOUT 15 CURRENTLY A FEDERAL ELECTION MUST BE HELD BY NOVEMBER THE NDP IS IN BIG TROUBLE SAID JOHN REDEKOP A POLITICAL SCIENCE PROFESSOR AT WILFRID LAURIER UNIVERSITY IN WATERLOO ONTARIO I THINK WE'RE WITNESSING THE EROSION OF 30 YEARS OF LABOR SUPPORT FOR THE NDP HE SAID THE PARTY LOST A LOT OF VOTES AS A RESULT OF THE ACTION BY CAW LOCAL 222 WHICH REPRESENTS ABOUT 23000 WORKERS MAINLY AT GENERAL MOTORS CORP'S OSHAWA ONTARIO PLANTS PROF REDEKOP EXPECTS THAT ANY VOTES THE NDP LOSES WILL INSTEAD GO TO THE LIBERAL PARTY WHICH WITH MORE THAN 40 SUPPORT IN THE POLLS IS CURRENTLY THE FRONTRUNNER TO FORM THE NEXT GOVERNMENT IN AN EFFORT TO HELP THE CONSERVATIVE PARTY CATCH UP THE UNPOPULAR PRIME MINISTER BRIAN MULRONEY RECENTLY ANNOUNCED HE WILL RESIGN NDP OFFICIALS AND SUPPORTERS PLAY DOWN THE UNION LOCAL'S DECISION JULIE DAVIS ONTARIO NDP PRESIDENT SAID PREMIER RAE WAS VERY CALM WHEN SHE TOLD HIM THE RESULTS OF THE UNION VOTE THAT'S DEMOCRACY RIGHT SOMETIMES IT'S PAINFUL DOUG GAMMIE A GM MILLWRIGHT WHO LED THE CAMPAIGN TO CUT TIES WITH THE NDP SAID HE BELIEVES THERE IS CONCERN AMONG THE CAW'S UPPER RANKS THAT ANTINDP CAMPAIGNS SUCH AS HIS WILL SPREAD LIKE A GRASS FIRE BY ENDING ITS AFFILIATION WITH THE NDP THE UNION LOCAL'S MOVE ALSO HALTS ITS ANNUAL CONTRIBUTION TO THE PARTY OF ABOUT US32000 SPECIFICALLY MR GAMMIE SAID HE OPPOSES PARTS OF THE ONTARIO GOVERNMENT'S EMPLOYMENT EQUITY ACT WHICH URGES COMPANIES TO HIRE AND PROMOTE MORE WOMEN MINORITIES AND DISABLED PEOPLE THE ACT IS DANGEROUS TO UNION PEOPLE BECAUSE IT COULD DISRUPT SENIORITY RIGHTS OF UNION MEMBERS HE SAID MR GAMMIE SAID HE MOSTLY SUPPORTS A RECENT ONTARIO LAW THAT PROHIBITS COMPANIES FROM HIRING REPLACEMENT WORKERS DURING A STRIKE BUT HE BELIEVES A COMPANY SHOULD BE ALLOWED TO HIRE REPLACEMENT WORKERS IN CASES WHERE STRIKES ENDURE ONTARIO'S NDP HAS LONG BEEN CRITICIZED BY BUSINESS GROUPS AS BEING ANTIBUSINESS MORE RECENTLY THE PARTY ALSO HAS COME UNDER ATTACK FROM GROUPS ANGERED BY RECENT CUTBACKS IN EDUCATION AND SOCIAL PROGRAMS THE NDP ALSO HOLDS POWER IN BRITISH COLUMBIA AND SASKATCHEWAN ONTARIO'S PREMIER RAE IS LOSING THEM ON THE LEFT AND HE'S LOSING THEM ON THE RIGHT OF THE POLITICAL SPECTRUM PROF REDEKOP SAID CAW LOCAL 222 IS SCHEDULED TO TAKE ANOTHER VOTE IN MAY ON WHETHER TO REINSTATE ITS AFFILIATION WITH THE NDP BUT MR GAMMIE SAID HE EXPECTS THAT HIS CAMP WILL CARRY THE DAY IN THAT VOTE AS WELL 9303080153 930308 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES TOTALED 5401 IN JANUARY AN 18 DECLINE FROM 6554 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID BANKRUPTCIES BY INDIVIDUALS TOTALED 4397 IN JANUARY AN 18 DECLINE FROM 5350 A YEAR EARLIER AND BUSINESS BANKRUPTCIES TOTALED 1004 A 17 DECLINE FROM 1204 9303080152 930308 DOW JONES EQUITY MARKET INDEX NEW YORK GALEN HEALTH CARE INC IS BEING ADDED TO HEALTH CARE INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY GALEN HEALTH CARE WAS SPUN OFF FROM HUMANA INC 9303080151 930308 SWISS GDP DECLINES ZURICH SWITZERLAND'S GROSS DOMESTIC PRODUCT CONTRACTED AN AVERAGE REAL OR INFLATIONADJUSTED 06 IN 1992 AFTER A CONTRACTION OF 01 IN 1991 ACCORDING TO ESTIMATES BY FEDERAL OFFICE FOR ECONOMIC QUESTIONS ANNOUNCED THE GOVERNMENT AGENCY SAID THE 1992 FIGURE WAS BASED ON THE QUARTERLY ESTIMATES OF GDP AND THE 1991 FIGURE WAS CALCULATED ON A PROVISIONAL BASIS GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION IN AN ADJUSTED ANNUALIZED ESTIMATE THE AGENCY SAID REAL GDP DECLINED 13 ON A QUARTERLY BASIS IN THE FOURTH QUARTER YEAR TO YEAR GDP CONTRACTED 11 THE AGENCY SAID 9303080150 930308 VIASA HALVED ITS LOSSES IN '92 MADRID THE VENEZUELAN NATIONAL AIRLINE VENEZOLANA INTERNACIONAL DE AVIACION OR VIASA CUT ITS LOSSES IN HALF TO 47 MILLION IN 1992 THE SPANISH CARRIER IBERIA SA SAID IBERIA THE MAJOR SHAREHOLDER IN VIASA SAID IN A STATEMENT THAT THE VENEZUELAN AIRLINE HAS PROPOSED ITS SHAREHOLDERS INJECT A TOTAL OF 63 MILLION INTO THE CARRIER TO COVER PAST LOSSES IBERIA WHICH DIRECTLY HOLDS A 45 STAKE IN VIASA AND ITS LOCAL PARTNER THE VENEZUELAN BANK BANCO PROVINCIAL WHICH HOLDS 15 HAVE AGREED TO CONTRIBUTE PROPORTIONATELY TO THE CAPITAL INJECTION IBERIA SAID THE SHAREHOLDER OF THE REMAINING 40 FONDO DE INVERSIONES DE VENEZUELA HASN'T YET ANNOUNCED WHETHER IT WILL CONTRIBUTE TO THE CAPITAL INCREASE 9303080149 930308 DUTCH FIRMS' ORDERS THE HAGUE ORDER INFLOWS TO DUTCH INDUSTRY EASED SLIGHTLY IN JANUARY FROM DECEMBER THE DUTCH CENTRAL BUREAU FOR STATISTICS SAID ON BALANCE THE ORDER POSITION OF DUTCH INDUSTRY WAS UNDER PRESSURE THE AGENCY SAID WITH THE INDEX FOR ORDER INFLOWS SLIPPING TO 86 IN JANUARY FROM 88 IN DECEMBER THE INDICATOR IS BASED ON A SURVEY OF BUSINESSES AND IT RATES FOURTHQUARTER 1990 LEVELS AS EQUAL TO 100 9303080148 930308 FRENCH PURCHASES OF GOODS PARIS FRENCH HOUSEHOLD CONSUMPTION OF MANUFACTURED GOODS FELL 27 IN JANUARY FOLLOWING A SHARP 55 SURGE IN DECEMBER THE NATIONAL STATISTICS INSTITUTE SAID THE STATERUN DATAGATHERING AGENCY ATTRIBUTED THE TURNAROUND TO A DROP IN PURCHASES OF AUTOMOBILES FOLLOWING A BOOM IN DECEMBER THE LAST MONTH IN WHICH BUYERS COULD RECEIVE A GOVERNMENT SUBSIDY FOR CARS EQUIPPED WITH CATALYTIC CONVERTERS 9303080146 930308 HYUNDAI ENGINEERING CONTRACT SEOUL SOUTH KOREA'S HYUNDAI ENGINEERING & CONSTRUCTION CO SAID IT SIGNED A 110 MILLION CONTRACT WITH LNG SDO OF MALAYSIA TO BUILD NATURAL GAS LIQUEFYING FACILITIES IN MALAYSIA THE FACILITIES WHICH WILL BE BUILT AT PETRONAS A SUBSIDIARY OF THE MALAYSIAN NATIONAL OIL COMPANY WILL BE EQUIPPED WITH AN ANNUAL CAPACITY OF PRODUCING 78 MILLION TONS OF LIQUEFIED NATURAL GAS HYUNDAI SAID 9303080145 930308 PHILLIPS PETROLEUM DEBENTURES BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SAID IT WILL REDEEM ALL OF THE 1034 MILLION PRINCIPAL AMOUNT OF ITS 8 7/8 DEBENTURES AND ALL OF THE 696 MILLION OF ITS 7 5/8 DEBENTURES ON APRIL 15 THE DEBENTURES ARE DUE 2000 AND 2001 RESPECTIVELY PHILLIPS WILL REDEEM THE 8 7/8 ISSUE AT 10133 OF FACE VALUE AND THE 7 5/8 ISSUE AT 10085 9303080144 930308 ARE LYONS BECOMING A DYING BREED BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LYONS ARE BECOMING AN ENDANGERED SPECIES ON WALL STREET A FEW YEARS AGO LYONS WERE ONE OF WALL STREET'S HOTTEST PRODUCTS BROKERAGE FIRMS LED BY MERRILL LYNCH & CO HEAVILY PROMOTED THE HYBRID SECURITIES PART STOCK PART BOND TO SMALL INVESTORS AND EVEN MANY PROFESSIONALS VIEWED LYONS OR LIQUID YIELD OPTION NOTES AS A RELATIVELY SAFE WAY TO BET ON THE FUTURE OF SUCH PROMISING STOCKS AS WALT DISNEY CO AND BERKSHIRE HATHAWAY CO SINCE 1985 436 BILLION FACE VALUE OF LYONS HAVE BEEN SOLD BUT TODAY THE MARKET FOR NEW LYON ISSUES IS SHRINKING WHILE ISSUERS ARE SNATCHING EXISTING LYONS AWAY FROM INVESTORS AT A FURIOUS CLIP LYONS HAVE BEEN A GOOD DEAL FOR ISSUERS BUT NOT SUCH A GREAT DEAL FOR BUYERS SAID BEN TROSKY A PORTFOLIO MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO INVENTED BY MERRILL LYNCH IN 1985 LYONS ARE ZEROCOUPON CONVERTIBLE BONDS LIKE MOST ZEROCOUPON BONDS LYONS ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND DON'T PAY ANY ANNUAL INTEREST THE YIELD DERIVES FROM THE PRICE APPRECIATION THAT OCCURS AS THE LYON ADVANCES TOWARD MATURITY LIKE OTHER CONVERTIBLE BONDS A LYON CAN BE SWAPPED FOR A PREDETERMINED NUMBER OF SHARES OF THE ISSUING COMPANY'S COMMON STOCK AND IN A SPECIAL WRINKLE LYONS HAVE A POPULAR PUT OPTION THAT ALLOWS THE INVESTOR TO SELL THEM BACK TO THE ISSUER AT CERTAIN INTERVALS USUALLY AFTER FIVE YEARS AND THEN 10 YEARS IT ALL LOOKED GREAT BUT WITH INTEREST RATES TUMBLING MANY LYONS OWNERS ARE GETTING A RUDE SHOCK AS THEY REALIZE THAT LYONS CAN BE CALLED OR REDEEMED EARLY MUCH FASTER THAN MOST BONDS THAT'S JUST WHAT LYONS ISSUERS ARE DOING THESE COMPANIES KNOW THEY CAN REPLACE THEIR LYONS TODAY BY SELLING ORDINARY BONDS THAT PAY LOWER INTEREST RATES DURING THE NEXT 10 DAYS FOR EXAMPLE WALT DISNEY MCI COMMUNICATIONS INC AND SONAT CO PLAN TO REDEEM A COMBINED 42 BILLION FACE VALUE OF THEIR LYONS OUTSTANDING THEY JOIN A LIST OF COMPANIES THAT INCLUDES BERKSHIRE HATHAWAY CO AND CARNIVAL CRUISE LINES THAT HAVE REDEEMED THEIR LYONS DURING THE PAST SIX MONTHS THE BOND MARKET HAS RALLIED SO MUCH AND INTEREST RATES HAVE DECLINED SO SHARPLY SAID BRADLEY SPARKS MCI'S TREASURER THAT IT'S CHEAPER TO ISSUE STRAIGHT DEBT THAN COMPLEX SECURITIES SUCH AS LYONS SOME SMALL INVESTORS WHO PURCHASED LYONS IN THE SECONDARY MARKET RATHER THAN DURING THE INITIAL OFFERING HAVE FOUND THAT LYONS CAN BE FAR RISKIER THAN THEY EVER IMAGINED THAT'S EXACTLY WHAT NEW YORKER TED SARETSKY RECENTLY DISCOVERED LAST YEAR HE PURCHASED 10000 FACE AMOUNT OF A LYON ISSUED BY WALT DISNEY THAT WAS SCHEDULED TO MATURE IN THE YEAR 2005 THE LYON WHICH HE BOUGHT FOR HIS INDIVIDUAL RETIREMENT ACCOUNT WAS TIED TO STOCK ISSUED BY DISNEY'S EUROPEAN COMPANY EURO DISNEYLAND WHICH TRADES ON THE PARIS STOCK EXCHANGE INVESTOR IS STUNNED MR SARETSKY SAYS HE WAS STUNNED TO LEARN LAST WEEK THAT HIS LYON NOT ONLY IS BEING CALLED BUT THAT HE STANDS TO LOSE 640 ON THE INVESTMENT BECAUSE THE PRICE HE PAID IS SUBSTANTIALLY HIGHER THAN THE PRICE DISNEY IS OBLIGATED TO PAY WHEN IT CALLS ITS LYONS MR SARETSKY PAID 5478 FOR THE LYON DISNEY WILL BUY IT BACK FOR ONLY 4835 I'M FURIOUS SAID MR SARETSKY PAINEWEBBER WHICH SOLD HIM THE DISNEY LYON DECLINED TO COMMENT BUT LEE COLE A MANAGING DIRECTOR AT MERRILL LYNCH WHICH UNDERWROTE THE DISNEY LYON EXPLAINS THAT THE REAL PROBLEM IS THAT INVESTORS SUCH AS MR SARETSKY PURCHASED THE DISNEY LYONS IN THE OPEN MARKET LAST YEAR AFTER EURO DISNEYLAND'S STOCK HAD SOARED NOW THAT EURO DISNEYLAND'S STOCK IS IN THE DUMPS DOWN MORE THAN 50 FROM ITS HIGH THE VALUE OF THE LYON HAS DECLINED AND THE SECURITY NOW TRADES AT ITS CALL PRICE LYONS HAVE THEIR DEFENDERS THEY SAY THAT IN MANY CASES LYONS HAVE PROVIDED SOME PROTECTION AGAINST STOCKS THAT HAVEN'T PERFORMED AS INVESTORS HAD HOPED INDEED IF MR SARETSKY HAD BOUGHT EURO DISNEYLAND STOCK LAST YEAR HE WOULD HAVE BEEN CONSIDERABLY WORSE OFF LYONS CONTINUE TO MAKE SENSE IF YOU LIKE THE UNDERLYING STOCK SAID BEN THORNDIKE A MANAGING DIRECTOR AT SCUDDER STEVENS & CLARK STILL FEARS THAT LYONS WILL BE CALLED HAVE HURT THEIR MARKET PERFORMANCE ACCORDING TO MERRILL LYNCH THE TOTAL RETURN FOR LYONS WAS 6795 IN 1992 COMPARED WITH 17345 FOR ALL CONVERTIBLE BONDS LYONS ALSO HAVE PERFORMED POORLY WHEN COMPARED WITH INTERMEDIATETERM ZEROCOUPON TREASURY BONDS WHICH POSTED A TOTAL RETURN IN EXCESS OF 9 LAST YEAR MONEY MANAGERS SAY THOSE TRENDS CONTINUED DURING THE FIRST TWO MONTHS OF 1993 WHEN LYONS WERE BEING AGGRESSIVELY SOLD TO INVESTORS MANY BROKERS PITCHED THE SECURITIES AS LONGTERM INVESTMENTS THAT COMPANIES WERE UNLIKELY TO REDEEM BECAUSE THEY OFFERED THE ISSUER FAVORABLE TAX ADVANTAGES FOR EXAMPLE EVEN THOUGH INVESTORS WHO OWNED LYONS HAD TO PAY TAXES ON INTEREST PAYMENTS THEY HADN'T RECEIVED COMPANIES THAT ISSUED LYONS WERE ALLOWED TO DEDUCT THE INTEREST COSTS FROM TAXES EVEN THOUGH THEY WEREN'T MAKING ANY INTEREST PAYMENTS ON THE LYONS BUT AS INTEREST RATES HAVE PLUNGED THE TAX ADVANTAGES OF LYONS HAVE BEEN OVERSHADOWED FOR CORPORATE ISSUERS BY THE OPPORTUNITY TO SAVE MONEY BY BORROWING AT CHEAPER RATES NONETHELESS THE MARKET FOR LYONS ISN'T ENTIRELY DEAD A 135 BILLION OFFERING OF LYONS WAS SOLD LAST WEEK BY THE MEDIA COMPANY NEWS AMERICA CORP HOWEVER THE NUMBER OF LYONS REDEMPTIONS FAR EXCEEDS NEW ISSUES AT A TIME WHEN OFFERINGS OF CONVERTIBLE AND OTHER BONDS ARE RISING EVEN ONE OF THE BEST KNOWN LYONS ISSUES HAS TURNED OUT TO BE A MEDIOCRE INVESTMENT BERKSHIRE HATHAWAY HEADED BY BILLIONAIRE INVESTOR WARREN E BUFFETT SOLD 9026 MILLION OF LYONS IN LATE 1989 THE SECURITIES MARKED THE FIRST TIME THAT BERKSHIRE HATHAWAY A VERY EXPENSIVE BUT CONSISTENTLY SOLID PERFORMER ON THE NEW YORK STOCK EXCHANGE HAD SOLD STOCK SINCE MR BUFFETT TOOK OVER MORE THAN 27 YEARS AGO BERKSHIRE'S SHARES CLOSED FRIDAY AT 12810 EACH WHEN BERKSHIRE HATHAWAY CALLED ITS LYONS IN JANUARY THE REDEMPTION PRICE WAS HIGHER THAN THE VALUE OF CONVERTING INTO BERKSHIRE STOCK SO 85 OF BERKSHIRE LYON INVESTORS ELECTED TO ACCEPT CASH RATHER THAN SWAP THE LYONS FOR STOCK 9303080143 930308 WHO'S NEWS GENERAL CINEMA CORP GENERAL CINEMA CORP NEWTON MASS GERALD A SAMPSON FORMERLY CHAIRMAN OF MAY DEPARTMENT STORES CO'S CALIFORNIA CO UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF NEIMAN MARCUS GROUP INC'S NEIMAN MARCUS STORES UNIT NEIMAN MARCUS GROUP A SPECIALTY RETAILER IS A 65OWNED UNIT OF GENERAL CINEMA A MOVIE THEATER PUBLISHING AND RETAILING CONCERN MR SAMPSON SUCCEEDS TERRY J LUNDGREN WHO REMAINS CHIEF EXECUTIVE OFFICER OF NEIMAN MARCUS STORES AND WAS ALSO NAMED TO THE NEW POST OF CHAIRMAN OF THE STORES UNIT 9303080142 930308 BREEDEN URGES CAUTION IN EFFORT TO PROTECT AUDITORS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION STRONGLY URGED ACCOUNTANTS TO TEMPER THEIR PUSH FOR LIMITS ON AUDITORS' LIABILITY FOR CORPORATE FAILURES ACCOUNTANTS STUNG BY THE MASSIVE DAMAGE AWARDS RECENTLY SOUGHT BY INVESTORS AND REGULATORS ARE SUPPORTING CONGRESSIONAL LEGISLATION THAT WOULD SHIFT MUCH OF THE LEGAL BLAME AWAY FROM AUDITORS THE SIX LARGEST US ACCOUNTING FIRMS HAVE CONTRIBUTED 2 MILLION EACH TO FINANCE LOBBYING FOR LIMITS ACCORDING TO BOWMAN'S ACCOUNTING REPORT A MONTHLY TRADE PUBLICATION THE ACCOUNTANTS WANT THE STRICTEST LIMITS APPLIED TO THE USE OF A LEGAL TENET KNOWN AS JOINTANDSEVERAL LIABILITY UNDER WHICH A SINGLE DEFENDANT CAN BE HELD RESPONSIBLE FOR 100 OF THE DAMAGES ASSESSED AGAINST ALL DEFENDANTS REGARDLESS OF THE SINGLE DEFENDANT'S ROLE IN THE WRONGDOING BUT SEC CHAIRMAN RICHARD BREEDEN WHO HAS BEEN GENERALLY SYMPATHETIC TO COMPLAINTS ABOUT RUNAWAY LITIGATION TOLD AN ACCOUNTING OVERSIGHT PANEL THAT HE DOESN'T BELIEVE JOINTANDSEVERAL LIABILITY SHOULD BE ABOLISHED IN CASES INVOLVING AUDITORS' NEGLIGENCE HE SAID SOMETIMES IT NEEDS TO HURT MR BREEDEN SUGGESTED THAT ACCOUNTANTS SUPPORT LEGISLATION THAT STRIKES A REASONABLE BALANCE BETWEEN THE INTERESTS OF ACCOUNTING FIRMS AND THE INTERESTS OF INVESTORS AND TAXPAYERS WHO HAVE BEEN HARMED BY POORLY AUDITED COMPANIES I DON'T BELIEVE THE LEGISLATIVE PRODUCTS THAT ARE ON THE TABLE TODAY DO THAT MR BREEDEN TOLD REPRESENTATIVES OF AN OVERSIGHT PANEL OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE OVERSIGHT PANEL ON FRIDAY PRESENTED A REPORT TO THE SEC THAT INCLUDED RECOMMENDATIONS FOR LIMITING ACCOUNTANTS' LIABILITY THE OVERSIGHT PANEL'S CHAIRMAN AA SOMMER JR SAID HE DIDN'T BELIEVE THE REPORT'S ENDORSEMENT OF CURRENT PROPOSED LEGISLATION IS AS BLANKET AS IT MIGHT SOUND BUT MR BREEDEN SAID THE GROUP SHOULD BE MORE ACTIVE IN PROMOTING ALTERNATIVE LEGISLATION FOR THIS EFFORT TO BE CREDIBLE THE PROFESSION HAS TO LAY ON THE TABLE BILLS THAT ARE FAIR TO INVESTORS TOO HE SAID WITHOUT THAT MR BREEDEN SAID THE ACCOUNTING PROFESSION WILL FIND EVEN ITS FRIENDS OPPOSED TO THE RELIEF IT IS SEEKING 9303080140 930308 WHO'S NEWS SPORT CHALET INC SPORT CHALET INC LA CANADA CALIF JOHN R ATTWOOD AND BETSY SANDERS WERE ELECTED DIRECTORS OF THIS SPECIALTY SPORTING GOODS STORE CHAIN INCREASING THE BOARD TO SIX MR ATTWOOD 63 YEARS OLD WAS CHAIRMAN OF COCACOLA BOTTLING OF LOS ANGELES UNTIL HIS RETIREMENT IN 1986 MS SANDERS 47 IS THE PRINCIPAL AT SANDERS PARTNERSHIP A MANAGEMENT CONSULTING FIRM 9303080138 930308 TAIWAN'S GOLD IMPORTS SURGE TAIPEI TAIWAN'S GOLD IMPORTS STOOD AT 246 METRIC TONS VALUED AT 260 MILLION IN FEBRUARY MORE THAN DOUBLING BOTH IN TERMS OF WEIGHT FROM 104 METRIC TONS AND IN DOLLAR TERMS FROM 121 MILLION IN THE YEAREARLIER MONTH THE MINISTRY OF FINANCE SAID THE WEIGHT FIGURE COMPARES WITH GOLD IMPORTS OF 194 METRIC TONS IN JANUARY 125 METRIC TONS IN DECEMBER AND 171 METRIC TONS IN NOVEMBER A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS JACK WU A BULLION DEALER AT CHINA TRUST PRECIOUS METALS CO ATTRIBUTED THE SURGE TO INCREASED IMPORTS OF INDUSTRYUSE GOLD HE SAID BOOMING GOLD PURCHASING BEFORE AND ON VALENTINE'S DAY WAS ALSO A FACTOR FOR THE IMPORTS RISE GOLD BUYING ALSO INCREASED SIGNIFICANTLY IN THE MONTH WHEN TAIWANESE NATIONALS VISITED THEIR MAINLAND RELATIVES IN FEBRUARY AFTER THE CHINESE LUNAR NEW YEAR HOLIDAY IN LATE JANUARY HE ADDED 9303080136 930308 COMAIR HOLDINGS INC CINCINNATI COMAIR HOLDINGS INC SAID ALEX BROWN & SONS INC AND KIDDER PEABODY & CO UNDERWRITERS OF ITS PREVIOUSLY COMPLETED PUBLIC OFFERING EXERCISED THEIR OPTION TO PURCHASE 250000 COMMON SHARES THE ACTION INCREASES THE NUMBER OF COMMON SHARES SOLD IN THE OFFERING TO TWO MILLION AND THE NET PROCEEDS OF THE OFFERING TO ABOUT 497 MILLION FROM THE PREVIOUS TOTAL OF 435 MILLION THE REGIONAL AIRLINE SAID IT PLANS TO USE PROCEEDS TO FINANCE SOME OF THE COSTS OF ITS ACQUISITION OF CANADAIR REGIONAL JETS AND RELATED SPARE PARTS AND SUPPORT EQUIPMENT AND COSTS RELATED TO THE NEW TERMINAL FACILITIES AT THE CINCINNATI/NORTHERN KENTUCKY INTERNATIONAL AIRPORT 9303080135 930308 CONTINENTAL AIR TRAFFIC HOUSTON CONTINENTAL AIRLINES SAID FEBRUARY TRAFFIC FELL 41 TO 298 BILLION REVENUE PASSENGER MILES FROM 310 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS SAID ITS FEBRUARY LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED SLIPPED TO 569 FROM 595 YEARTODATE TRAFFIC FELL 24 TO 625 BILLION REVENUE PASSENGER MILES FROM 640 BILLION A YEAR EARLIER LOAD FACTOR FELL TO 565 FROM 595 9303080134 930308 WHO'S NEWS RUSSELL REYNOLDS ASSOCIATES INC RUSSELL REYNOLDS ASSOCIATES INC NEW YORK THIS EXECUTIVE SEARCH CONCERN SAID ITS CHAIRMAN RUSSELL S REYNOLDS JR ASSUMED THE TITLE OF FOUNDER CHAIRMAN TRANSFERRING RESPONSIBILITY FOR OPERATIONS TO HOBSON BROWN JR PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE COMPLETES THE PROCESS BEGUN 15 MONTHS AGO WHEN MR BROWN 51 YEARS OLD WAS NAMED CHIEF EXECUTIVE MR REYNOLDS WHO STARTED THE FIRM IN 1969 IS 61 HE WILL CONTINUE AS A CONSULTANT TO THE FIRM 9303080133 930308 WHO'S NEWS HASBRO INC HASBRO INC PAWTUCKET RI SHELDON KLEIN WAS NAMED TO THE NEW POST OF PRESIDENT OF THE HASBRO CANADA/LATIN AMERICA UNIT OVERSEEING ALL OPERATIONS IN CANADA MEXICO AND SOUTH AMERICA THE TOY MAKER SAID 9303080132 930308 WHO'S NEWS WASTE MANAGEMENT INC WASTE MANAGEMENT INC OAK BROOK ILL JEROME D GIRSCH 47 YEARS OLD FORMERLY PRESIDENT OF THE COMPANY'S WASTE MANAGEMENT OF NORTH AMERICA MIDWEST UNIT WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CHEMICAL WASTE MANAGEMENT INC THE WASTE COMPANY'S 76OWNED SUBSIDIARY AS CHIEF FINANCIAL OFFICER HE SUCCEEDS BRUCE D TOBECKSON 48 WHO WAS NAMED VICE PRESIDENT OF THE COMPANY'S WMX TECHNOLOGY & SERVICES INC UNIT CHARLES F FLOOD 47 FORMERLY REGIONAL VICE PRESIDENT IN THE CENTRAL REGION OF WASTE MANAGEMENT OF NORTH AMERICA'S SOUTH GROUP WAS NAMED PRESIDENT OF WASTE MANAGEMENT OF NORTH AMERICA EAST SUCCEEDING WILLIAM P HULLIGAN 49 WHO WAS NAMED PRESIDENT OF WASTE MANAGEMENT OF NORTH AMERICA MIDWEST SUCCEEDING MR GIRSCH 9303080131 930308 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON THIS INTERNATIONAL BANKING COMPANY'S US SUBSIDIARY NATIONAL WESTMINSTER BANCORP APPOINTED ROBERT EVERETT BOSTROM AS GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT OF ITS LEGAL AND REGULATORY GROUP MR BOSTROM 40 YEARS OLD PREVIOUSLY WAS A PARTNER AT THE LAW FIRM OF WINSTON & STRAWN IN NEW YORK HE SUCCEEDS GEORGE B BERRIDGE 65 WHO PLANS TO RETIRE THIS SUMMER FROM THE UNIT BASED IN JERSEY CITY NJ 9303080130 930308 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK THIS PHARMACEUTICAL COMPANY APPOINTED RAYMOND C EGAN SENIOR VICE PRESIDENT FOR HEALTH CARE POLICY AND NEW BUSINESS DEVELOPMENT MR EGAN 50 YEARS OLD PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF THE COMPANY'S PHARMACEUTICAL AND NUTRITIONAL GROUP IN HIS NEW JOB HE WILL BE RESPONSIBLE FOR DEVELOPING AND RECOMMENDING STRATEGIES TO ADDRESS GOVERNMENTAL HEALTH CARE POLICY ISSUES PARTICULARLY IN THE MANAGED CARE AREA 9303080129 930308 SHARE SALE IS SET FOR FIRST DATA BY PARENT FIRM AMERICAN EXPRESS TO OFFER OVER HALF ITS 54 STAKE TO RAISE 12 BILLION BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO SAID IT PLANS TO RAISE NEARLY 12 BILLION BY SELLING MORE THAN HALF OF ITS 54 STAKE IN FIRST DATA CORP ITS FASTGROWING CREDITCARD PROCESSING UNIT THE MOVE COMES AS AMERICAN EXPRESS'S NEW CHIEF EXECUTIVE HARVEY GOLUB TRIES TO WOO SHAREHOLDERS AFTER THE ROCKY DEPARTURE OF FORMER CHAIRMAN AND CHIEF EXECUTIVE JAMES D ROBINSON III STOCKHOLDERS PRESSURED MR ROBINSON TO RESIGN IN JANUARY AFTER HE SURVIVED A BOARD ATTEMPT TO REMOVE HIM THE NEW YORK FINANCIAL SERVICES AND TRAVEL CONCERN SAID IT PLANS TO SELL 32 MILLION OF ITS FIRST DATA SHARES WHICH HAVE RISEN MORE THAN 56 SINCE AMERICAN EXPRESS FIRST SOLD A 46 STAKE TO THE PUBLIC LAST APRIL AT 22 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING FRIDAY SHARES OF FIRST DATA FELL 625 CENTS TO 3450 WHILE SHARES OF AMERICAN EXPRESS ROSE 50 CENTS TO 25625 THE SALE WILL REDUCE AMERICAN EXPRESS'S STAKE TO LESS THAN 249 IF UNDERWRITERS EXERCISE AN OPTION TO SELL AN ADDITIONAL 32 MILLION SHARES AMERICAN EXPRESS'S INTEREST WILL SHRINK TO 22 AMERICAN EXPRESS SAID IT WOULD USE THE 11 BILLION TO 12 BILLION IN PROCEEDS FOR GENERAL CORPORATE PURPOSES HOWEVER IT HAS BEEN SEEKING TO BOLSTER THE CAPITAL OF ITS SHEARSON LEHMAN BROTHERS BROKERAGE UNIT WHICH IT MIGHT SPIN OFF OR SELL TO THE PUBLIC ALTHOUGH THE PARENT HADN'T INDICATED PLANS TO REDUCE ITS FIRST DATA INVESTMENT THE ANNOUNCEMENT DIDN'T SURPRISE ANALYSTS WHO SAID AMERICAN EXPRESS HAS TREATED FIRST DATA AS A PORTFOLIO INVESTMENT FOLLOWING ITS INITIAL PUBLIC OFFERING THE COMPANY INDICATED IT DOESN'T HAVE ANY PLANS TO FURTHER REDUCE ITS STAKE IN FIRST DATA OTHER THAN THE SALE TO FIRST DATA OF UP TO 20 MILLION OF AMERICAN EXPRESS COMMON STOCK IN CONNECTION WITH AN ACQUISITION THE SALE OF AMERICAN EXPRESS'S STAKE IS BEING MANAGED BY A GROUP OF UNDERWRITERS LED BY SHEARSON LEHMAN TWENTYFIVE MILLION SHARES WILL BE OFFERED IN THE US FIVE MILLION IN A EUROPEAN OFFERING AND TWO MILLION SHARES IN AN ASIAN OFFERING FIRST DATA ALSO SAID IT EXPECTS TO SELL 150 MILLLION TO 200 MILLION OF SENIOR NOTES AND USE PROCEEDS FOR CAPITAL EXPENDITURES POSSIBLE ACQUISITIONS AND GENERATING NEW BUSINESS FIRST DATA HAS BEEN GROWING BRISKLY WHILE AMERICAN EXPRESS HAS STRUGGLED TO TURN AROUND ITS TRAVEL RELATED SERVICES UNIT AND AILING SHEARSON BROKERAGE UNIT IN 1992 FIRST DATA PROCESSED MORE THAN 23 BILLION CREDIT CARD TRANSACTIONS AND HAD REVENUE OF 12 BILLION NEARLY TRIPLE ITS REVENUE AND TOTAL TRANSACTIONS FOUR YEARS AGO NET INCOME LAST YEAR WAS 1414 MILLION OR 130 A SHARE SETTLEMENT OF POSTAL DISPUTE IN ITS FILING OF THE AMERICAN EXPRESS STOCK OFFER WITH THE SECURITIES AND EXCHANGE COMMISSION FIRST DATA ALSO SAID IT REACHED A PRELIMINARY SETTLEMENT WITH THE JUSTICE DEPARTMENT IN A DISPUTE OVER A US POSTAL SERVICE CONTRACT AND WILL PAY THE GOVERNMENT 22 MILLION IN TWO PAYMENTS IN MARCH AND APRIL FIRST DATA SAID THE PRELIMINARY SETTLEMENT WOULDN'T HAVE A MATERIAL IMPACT ON THE COMPANY'S RESULTS AMERICAN EXPRESS WILL PAY THE LESSER OF 7 MILLION OR 30 OF THE AGGREGATE SETTLEMENT AMOUNT WHEN THE MATTER IS CONCLUDED THE FILING SAID THE DISPUTE INVOLVED CLAIMS BY THE POSTAL SERVICE THAT FIRST DATA OVERCHARGED THE GOVERNMENT WHEN IT RENEWED A 19861987 CONTRACT TO PROCESS MAIL WITH NINE DIGIT ZIP CODES THE JUSTICE DEPARTMENT LAST MONTH DECIDED IT WOULDN'T PURSUE A CRIMINAL CASE THE FILING SAID FIRST DATA ALSO SAID IT IS IN TALKS TO ACQUIRE TWO BUSINESSES PROVIDING ACCOUNTS RECEIVABLE MANAGEMENT SERVICES AND IS IN NEGOTIATIONS WITH A GROUP OF DOMESTIC BANKS TO ACQUIRE CERTAIN ASSETS INCLUDING A PROCESSING FACILITY AND TO ENTER INTO LONGTERM PROCESSING CONTRACTS FOR A PAYMENT OF ABOUT 35 MILLION FIRST DATA SAID IT PLANS TO CONTINUE OFFERING NEW SERVICES TO STRENGTHEN RELATIONSHIPS WITH CURRENT CLIENTS RETAIL STORE CREDIT CARDS OIL COMPANY CREDIT CARDS AND DEBT CARDS ALSO REPRESENT OPPORTUNITIES FOR FUTURE GROWTH IT SAID IT INTENDS TO PURSUE SELECTED INTERNATIONAL EXPANSION 9303080128 930308 INTERNATIONAL JAPAN KINGMAKER'S ARREST DRAWS QUERIES ON MOVE'S SIGNIFICANCE BY JACOB M SCHLESINGER AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE SUDDEN WEEKEND ARREST OF THE MAN ONCE THOUGHT TO BE JAPAN'S MOST POWERFUL POLITICIAN WAS A SURPRISINGLY BOLD STROKE BY THIS COUNTRY'S LAW ENFORCEMENT AUTHORITIES WHO HAVE BEEN WIDELY DISPARAGED IN RECENT MONTHS FOR GOING TOO EASY ON POLITICAL CORRUPTION BUT THE SATURDAY ARREST OF 78YEAROLD SHIN KANEMARU ON SUSPICION OF TAX EVASION DREW AS MANY QUESTIONS AS CHEERS FROM THE JAPANESE PUBLIC DOES THIS HERALD A NEW UNPRECEDENTED CAMPAIGN TO ROOT OUT THE EVILS OF JAPAN'S PERVASIVE MONEYDRIVEN POLITICS OR WILL MR KANEMARU BECOME A CONVENIENT VILLAIN WHILE HIS FORMER COLLEAGUES CONTINUE CONDUCTING BUSINESS AS USUAL THE ESSENCE OF THE KANEMARU ISSUE IS WHETHER OTHER POWERS WILL SUCCEED IN TRYING TO SURVIVE BY MAKING MR KANEMARU THE SOLE SCAPEGOAT OR WHETHER THIS WILL LEAD TO THE STARTING POINT FOR THE COLLAPSE OF THE CURRENT POLITICAL ESTABLISHMENT MINORU MORITA A POLITICAL COMMENTATOR SAID DURING AN APPEARANCE ON A POPULAR SUNDAY MORNING TALK SHOW I THINK IT'S GOOD THAT MR KANEMARU WAS ARRESTED SAID YASUHIRO NAGATA A 35YEAROLD BUSINESSMAN WHILE STANDING OUTSIDE TOKYO'S BUSTLING NAKANO STATION BUT HE ADDED NO ONE THINKS IT WILL REALLY CHANGE THE WAY THINGS ARE INCLUDING ME NEITHER THE TOKYO PROSECUTORS NOR MR KANEMARU ISSUED PUBLIC STATEMENTS FOLLOWING THE SATURDAY EVENING ARREST FORMAL CHARGES APPARENTLY HAVEN'T BEEN FILED JAPANESE WEEKEND TELEVISION WAS DOMINATED BY FOOTAGE OF BLUESUITED PROSECUTORS TOTING BOXES OF DOCUMENTS OUT OF MR KANEMARU'S HOMES AND HIS OFFICES ONE NEWS REPORT SAID MR KANEMARU WAS BEING HELD SUNDAY IN A SIXFOOTBYNINEFOOT SOLITARY CELL IN A TOKYO DETENTION CENTER UNTIL SIX MONTHS AGO MR KANEMARU KNOWN AS THE DON WAS THE BACKROOM STRONGMAN OF THE RULING LIBERAL DEMOCRATIC PARTY THOUGH HE HIMSELF WAS NEVER PRIME MINISTER HE PLAYED A MAJOR ROLE IN CHOOSING AND MANIPULATING THE PAST THREE INCLUDING JAPAN'S CURRENT LEADER KIICHI MIYAZAWA IN AUGUST MR KANEMARU ADMITTED TO TAKING 500 MILLION YEN 43 MILLION IN ILLEGAL CAMPAIGN CONTRIBUTIONS FROM A BUSINESSMAN WITH ALLEGED GANGSTER TIES WHILE PUBLIC OUTRAGE ULTIMATELY FORCED HIM TO GIVE UP HIS SEAT IN PARLIAMENT THE PROSECUTORS SEEMED TO LET HIM OFF EASY MR KANEMARU'S ONLY LEGAL PENALTY WAS A 200000 YEN FINE A SLAP ON THE WRIST THAT TRIGGERED PUBLIC DISGUST THE DETAILS SURROUNDING THE ARREST COULDN'T BE IMMEDIATELY CONFIRMED BUT MAJOR JAPANESE NEWSPAPERS SAID IT APPEARED TO HAVE NO CLEAR CONNECTION TO LAST YEAR'S ILLEGAL CAMPAIGN CONTRIBUTION SCANDAL MR KANEMARU IS REPORTEDLY SUSPECTED OF FAILING TO PAY A TOTAL OF 400 MILLION YEN IN TAXES IN 1987 AND 1989 ON INCOME GAINED FROM BONDS HE PURCHASED IT WASN'T CLEAR WHERE MR KANEMARU GOT THE MONEY TO BUY THE BONDS OR WHAT HE DID WITH THE INCOME BUT MOST REPORTS SAID IT APPARENTLY CAME FROM MANY DIFFERENT SOURCES MR KANEMARU'S ONETIME AIDE MASAHISA HAIBARA WAS ARRESTED SATURDAY ALSO REPORTEDLY ON SUSPICION OF EVADING SEVERAL HUNDRED MILLION YEN IN TAXES IF THE PROSECUTORS ASSERT SIMPLY THAT THE TAX PROBLEM IS LIMITED TO MR KANEMARU AND HIS AIDE THE MATTER COULD DIE WITH LITTLE LASTING DAMAGE TO OTHER POLITICIANS MR KANEMARU AFTER ALL HAS ALREADY LOST ALL HIS POWER AND EVEN A CONVICTION WOULD HAVE LARGELY SYMBOLIC EFFECT AT THIS POINT IF ON THE OTHER HAND THE SCANDAL IS WIDER AND ENGULFS OTHER PROMINENT POLITICIANS IT COULD TAKE ON MUCH BROADER SIGNIFICANCE MR KANEMARU WAS WIDELY REPORTED LAST YEAR TO HAVE DISTRIBUTED HIS 500 MILLION YEN IN ILLEGAL CAMPAIGN CONTRIBUTION TO 60 FELLOW LDP MEMBERS THOUGH AN OFFICIAL LIST WAS NEVER REVEALED EVEN BEFORE MR KANEMARU'S ARREST LDP LEADERS HAD APPEARED UNUSUALLY WORRIED THAT PUBLIC DISAFFECTION MAY FINALLY THREATEN THE PARTY'S NEARLY 40 YEARS IN POWER SEVERAL OF MR KANEMARU'S CLOSEST FORMER COLLEAGUES HAVE RECENTLY FORMED A SPECIAL REFORM GROUP WITHIN THE LDP AND HAVE HINTED AT PLANS TO LEAVE THE PARTY LAST WEEK PRIME MINISTER MIYAZAWA PLEDGED TO PUSH FOR POLITICAL REFORM DURING THE CURRENT DIET SESSION AND WILL SOON INTRODUCE SPECIFIC LEGISLATION SKEPTICS HOWEVER DISMISS SUCH MOVES AS ATTEMPTS TO CALM PUBLIC OPINION RATHER THAN SERIOUS PLANS FOR MEANINGFUL CHANGE 9303080127 930308 FINANCING BUSINESS FRANCONEVADA MINING CORP FRANCONEVADA MINING CORP TORONTO SAID IT AGREED TO SELL ONE MILLION SPECIAL WARRANTS AT 38 CANADIAN DOLLARS US3050 EACH FOR TOTAL PROCEEDS OF C38 MILLION THE COMPANY SAID THE SPECIAL WARRANTS WILL BE SOLD TO A GROUP OF SECURITIES DEALERS LED BY FIRST MARATHON SECURITIES LTD OF TORONTO SUBJECT TO REGULATORY APPROVAL FRANCONEVADA WHICH OWNS ROYALTIES ON VARIOUS GOLD PROPERTIES SAID THE PROCEEDS WILL BE USED TO ACQUIRE ADDITIONAL ROYALTIES EACH SPECIAL WARRANT WILL BE EXCHANGEABLE FOR ONE COMMON SHARE AND ONEHALF OF A SHAREPURCHASE WARRANT FRANCONEVADA HAS ABOUT 138 MILLION OUTSTANDING SHARES 9303080126 930308 WHO'S NEWS TOSCO'S GERARD TO SERVE AS CEO OF UNIT FOR SALE STAMFORD CONN TOSCO CORP SAID THAT ANTHONY GERARD 43 YEARS OLD WILL SERVE AS CHIEF EXECUTIVE OFFICER OF SEMINOLE FERTILIZER CORP UNTIL THE SALE OF THE TOSCO UNIT TO CARGILL CORP IS COMPLETED MR GERARD A TOSCO VICE PRESIDENT SUCCEEDS JOHN J LEE 56 WHO LAST WEEK ANNOUNCED HIS RESIGNATION AS CHAIRMAN AND CHIEF EXECUTIVE OF THE UNIT AND PRESIDENT AND CHIEF OPERATING OFFICER OF TOSCO MR GERARD WILL REMAIN A TOSCO VICE PRESIDENT AFTER THE BARTOW FLA UNIT IS SOLD TO CARGILL FOR 150 MILLION SEMINOLE'S PRESIDENT STEVEN L YURMAN 50 ALSO IS RESIGNING A TOSCO SPOKESMAN SAID THE SPOKESMAN ADDED THAT THERE WON'T BE A SUCCESSOR TO MR YURMAN TO CUT COSTS SEMINOLE SAID IT'S ADJUSTING PRODUCTION TO MEET REDUCED MARKET NEEDS AMONG OTHER MEASURES 9303080125 930308 WHO'S NEWS PHYSICIANS HEALTH SERVICES INC PHYSICIANS HEALTH SERVICES INC TRUMBULL CONN JACK E MCGREGOR 58 YEARS OLD WAS NAMED A DIRECTOR OF THE NEWLY PUBLIC HEALTH MAINTENANCE ORGANIZATION MR MCGREGOR WHO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AQUARION CO BRIDGEPORT CONN FILLS A VACANCY ON THE 18MEMBER BOARD HIS TERM EXPIRES IN JANUARY 1994 9303080124 930308 DIVIDEND NEWS FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP MCLEAN VA THE CONGRESSIONALLY CHARTERED BUYER AND SELLER OF HOME MORTGAGES INCREASED ITS QUARTERLY DIVIDEND 16 TO 22 CENTS A SHARE FROM 19 CENTS PAYABLE MARCH 31 TO SHARES OF RECORD MARCH 15 THE COMPANY KNOWN AS FREDDIE MAC HAS ABOUT 180 MILLION SHARES OUTSTANDING 9303080123 930308 FINANCING BUSINESS CANADIAN PACIFIC FOREST PRODUCTS LTD CANADIAN PACIFIC FOREST PRODUCTS LTD MONTREAL SAID IT AGREED SUBJECT TO BOARD APPROVAL TO ISSUE AND SELL TO A GROUP OF UNDERWRITERS LED BY SCOTIAMCLEOD INC EIGHT MILLION COMMON SHARES FOR A TOTAL OF 160 MILLION CANADIAN DOLLARS US129 MILLION OR C20 US16 A SHARE THE FORESTPRODUCTS COMPANY SAID A SHORTFORM PRELIMINARY PROSPECTUS IS EXPECTED TO BE FILED WITH SECURITIES COMMISSIONS AND OTHER REGULATORY AUTHORITIES IN CANADA ON MARCH 9 AND CLOSING IS EXPECTED ON MARCH 30 NET PROCEEDS OF ABOUT C1536 MILLION WILL BE USED TO FUND GENERAL OPERATIONS AND TO FINANCE CAPITAL EXPENDITURES THE COMPANY WOULD HAVE ABOUT 605 MILLION SHARES OUTSTANDING AFTER THE ISSUE 9303080122 930308 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN PAUL L KIMMEL JR WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND GENERAL MANAGER FOR INTERNATIONAL OPERATIONS FOR THIS TELECOMMUNICATIONS CONCERN'S GTE AIRFONE SUBSIDIARY MR KIMMEL 47 YEARS OLD WAS PREVIOUSLY DIRECTOR OF MARKETING PLANNING AND TOTAL QUALITY FOR GTE'S SYLVANIA LIGHTING INTERNATIONAL BUSINESS WHICH THE COMPANY RECENTLY SOLD 9303080121 930308 THE SEDUCTION OF THE FED BY LAWRENCE A KUDLOW THERE'S NO QUESTION THAT PRESIDENT CLINTON'S ACROSSTHEBOARD TAX INCREASES ON LABOR CAPITAL AND ENERGY WILL THROW A WET BLANKET OVER THE RECOVERY AND DEPRESS THE ECONOMY'S LONGRUN POTENTIAL TO GROW THAT LEAVES OPEN THE NEXT KEY ECONOMIC POLICY QUESTION WILL THE FED ACCOMMODATE THE DEMANDS OF THE CLINTON ADMINISTRATION BY EASING MONEY THUS SETTING THE STAGE FOR A RETURN TO STAGFLATION IT MAY BE AN UNPLEASANT CHOICE BUT LOW GROWTH AND LOW INFLATION ARE STILL PREFERABLE TO LOW GROWTH AND HIGH INFLATION JUST ASK ANY BOND TRADER OR STOCKMARKET INVESTOR OR ANY FAMILY SAVER OR LONGRUN BUSINESS PLANNER IRONICALLY RIGHT NOW THERE ARE MARKET SIGNS THAT MIGHT SUGGEST THE APPROPRIATENESS OF A FED EASING MOVE GOLD THE MOTHER OF ALL INFLATION INDICATORS HAS TRADED BELOW 350 SINCE EARLY OCTOBER AND IS CURRENTLY UNDER 330 COPPER PRICES ARE MOVING DOWNWARD AS SILVER AND PLATINUM ALREADY HAVE BOND PRICES HAVE RALLIED BRISKLY DROPPING 10YEAR TREASURY YIELDS TO ABOUT 59 THE LOWEST LEVEL SINCE DECEMBER 1971 WHILE THE DOLLAR HAS LOST SOME GROUND AGAINST THE YEN ITS EXCHANGERATE VALUE IS STILL HOLDING STEADY AGAINST EUROPEAN AND MOST ASIAN CURRENCIES THUS ON A STRICT COMMODITYPRICE BASIS THERE ARE GROUNDS TO ARGUE FOR A FED EASING BUT THIS IS THE WRONG TIME TO EASE EASIER MONEY SHOULD NEVER ACCOMPANY A CONTRACTIONARY FISCAL POLICY SUCH AS ACROSSTHEBOARD TAX INCREASES INFLATION EXPECTATIONS MIGHT WELL REIGNITE SENDING LONGTERM INTEREST RATES HIGHER EVEN WHILE SHORTTERM RATES MOVE LOWER IN FACT BONDS MAY BE RALLYING IN PART SIMPLY BECAUSE THE FED HAS NOT EASED POLICY UNFORTUNATELY TO JUDGE BY THE STATEMENTS OF MR CLINTON'S KEY ADVISERS IT APPEARS THAT HIS ADMINISTRATION IS MORE THAN WILLING TO RISK A BIT MORE INFLATION BESIDES FED CHAIRMAN ALAN GREENSPAN SEEMS TO BE COOPERATING WITH THE CLINTON ECONOMIC PROGRAM FIRST IN CONGRESSIONAL HEARINGS MR GREENSPAN PRAISED THE PRESIDENT'S FISCAL PLAN SAYING THAT THE ECONOMIC ASSUMPTIONS ARE CONSERVATIVELY BASED AND THE NUMEROUS TAXANDSPEND PROPOSALS AT LEAST PUT ALL DEFICITREDUCING ACTIONS ON THE TABLE FOR DISCUSSION WHILE MR GREENSPAN ALSO EMPHASIZED THE NEED FOR TOUGH SPENDING RESTRAINT HE SIGNALED HIS APPROVAL OF A BROADBASED PLAN THAT WOULD INCLUDE TAX INCREASES FROM A STRICT MONETARIST STANDPOINT THERE IS ALSO APPARENT ROOM FOR FED EASING BUSINESS LOANS STARTED TO RISE A BIT LAST FALL BUT SINCE THEN THEY HAVE AGAIN NOSEDIVED IN DECEMBER AND JANUARY THEY CONTRACTED AT A 108 ANNUAL RATE IN LINE WITH THIS THE BROAD MONEY SUPPLY MEASURE M2 DECLINED BY AN ANNUALIZED RATE OF 24 OVER THE PAST TWO MONTHS AND 53 OVER THE PAST MONTH MOREOVER THE CLINTON ADMINISTRATION IS EAGER TO PROMOTE A STRONG EXPANSION OF BANK LOANS TO BUSINESS UNDOUBTEDLY THE WHITE HOUSE IS AWARE OF DATA THAT SHOW BANK INVESTMENTS TREASURY ISSUES HAVE BEEN GROWING AT ALMOST A 20 RATE WHILE BANK LOANS HAVE NOT BEEN GROWING IN FACT OVER THE PAST YEAR BANK HOLDINGS OF US GOVERNMENT SECURITIES HAVE INCREASED BY NEARLY 100 BILLION WHILE BUSINESS LOANS HAVE FALLEN BY 15 BILLION IN TOTAL US BANKS NOW OWN MORE THAN 660 BILLION OF TREASURY SECURITIES COMPARED WITH 600 BILLION OF BUSINESS LOANS BUT THE ECONOMY IS EXPANDING AT A SOLID PACE WITHOUT THE BENEFIT OF BANK LENDING OR EASY MONEY THE LATEST REVISION OF THE GROSS DOMESTIC PRODUCT PUT FOURTHQUARTER GROWTH AT 48 AFTER INFLATION WITH NONDEFENSE REAL GROWTH AT 52 WHAT'S MORE THIS IS A BUSINESSLED EXPANSION WITH BUSINESS FIXED INVESTMENT RISING BY 8 IN REAL TERMS FROM THE END OF 1991 TO THE END OF 1992 AND BUSINESS EQUIPMENT SPENDING INCREASING BY 12 INVENTORIES HARDLY EXPANDED AT ALL ONLY 21 BILLION MUCH OF THIS BUSINESSLED RECOVERY IS A FUNCTION OF GREATLY IMPROVED REAL CAPITAL RETURNS AND MUCH LOWER REAL CAPITAL COSTS BECAUSE THE GREENSPAN FED HAS BEEN OPERATING A BRETTON WOODSSTYLE APPROACH THAT USES GOLD COMMODITY AND FINANCIAL MARKET INDICATORS AS POLICY GUIDES REDUCED INFLATION RATES HAVE SHARPLY CUT THE EFFECTIVE MARGINAL TAX RATE ON UNINDEXED CAPITAL GAINS BUSINESS DEPRECIATION ALLOWANCES AND CORPORATE INCOMES RISING REAL CAPITAL RETURNS HAVE BOLSTERED THE HIGHRISK ENTREPRENEURIAL ECONOMY WHERE RECORD VENTURE CAPITAL COMMITMENTS AND INITIAL PUBLIC OFFERINGS HAVE LED TO A 13 YEARTOYEAR RISE IN NEW BUSINESS STARTUPS AND 16 MILLION NEW JOBS ACCORDING TO THE LABOR DEPARTMENT'S HOUSEHOLD SURVEY MEANWHILE REAL CONSUMER SPENDING INCREASED BY A MODEST 33 LAST YEAR SO FOR THE FIRST TIME IN MEMORY AGGREGATE SUPPLY IS RISING FASTER THAN AGGREGATE DEMAND NOMINAL GDP GROWTH A PROXY FOR AGGREGATE DEMAND WAS ONLY 57 THIS IS AN EXCELLENT POSITION FOR THE ECONOMY WHICH IS BALANCED AND PREPARED FOR SUSTAINED EXPANSION AND WITH SUPPLY RISING FASTER THAN DEMAND INFLATION PRESSURES ARE NONEXISTENT THIS OF COURSE IS WHY BONDS HAVE DISPLAYED SO MUCH VIBRANCY AS A 2 1/2 INFLATION RATE STILL LEAVES ROOM FOR A 3 1/2 REAL RETURN WITHIN THE CURRENT NEAR 6 YIELD ON 10YEAR TREASURYS THE IMPROVING RECOVERY RATE REGISTERED IN 1992 WAS FINANCED BY RISING CORPORATE PROFITS THAT ON AN OPERATING BASIS ROSE BY AN ESTIMATED 96 BILLION OR 28 FOR THE FOUR QUARTERS ENDING IN 1992 CASH FLOWS INCREASED BY 67 BILLION OR 14 THIS STRONG PROFITSRECOVERY WAS CORRECTLY FORECAST BY THE STOCK MARKET WHICH ROSE BY 35 FOR THE STANDARD & POOR'S 500 AND BY 80 FOR NASDAQ FROM THE END OF 1990 TO THE END OF 1992 TO RAISE ADDITIONAL CASH FIRMS HAVE TAKEN ADVANTAGE OF LOW INTEREST RATES TO STEP UP SALES OF DEBT AND EQUITY FINANCING ISSUES IN OTHER WORDS THIS BUSINESS RECOVERY CYCLE HAS BEEN LARGELY SELFFINANCED A CAREFUL OBSERVER OF THESE DEVELOPMENTS MIGHT LOGICALLY CONCLUDE THAT ADDITIONAL MONETARY STIMULUS IS UNNECESSARY EVEN PERHAPS COUNTERPRODUCTIVE AFTER ALL INTEREST RATES ARE AT NEAR HISTORIC LOWS AND THERE'S MORE THAN AMPLE LIQUIDITY SLOSHING AROUND THE BANKING SYSTEM HENCE THERE'S NO PRESSING NEED FOR FED EASING IN ADDITION BOTH THE FED AND THE ECONOMY ARE FACED WITH NASTY PROSPECTIVE TAXRATE INCREASES THAT WILL SUBSTANTIALLY REDUCE THE ECONOMY'S FUTURE POTENTIAL TO GROW THIS MEANS THAT THE SAME RATE OF FUTURE DOLLAR CREATION WILL BE CHASING A LOWER FUTURE RATE OF GOODS AND SERVICES PRODUCTION THIS COMBINATION OF MORE MONEY CHASING FEWER GOODS IS THE CLASSICAL DEFINITION OF HIGHER INFLATION THE STOCK MARKET ALREADY LOOKS MUCH MORE VOLATILE BECAUSE IT RECOGNIZES THAT MR CLINTON'S FISCAL DRAG REDUCES THE FUTURE RATE OF WEALTH CREATION AND PROFITS BUT THE BOND MARKET HAS BEEN LIVING UNDER A PINK CLOUD OF EUPHORIA NOT ONLY VERY LOW PRESENT INFLATION BUT THE HOOVERITE PROSPECT THAT RISING TAX BURDENS AND A DOSE OF TRADE PROTECTIONISM WILL STIFLE THE ECONOMIC RECOVERY YET THE BOND MARKET'S PINK CLOUD COULD EASILY DISSOLVE UNDER THE COMBINATION OF EASIER MONEY AND TAX INCREASES IT WOULD BE A SMALLER VERSION OF THE STAGFLATIONARY TREND THAT PREVAILED FROM THE LATE 1960S TO THE EARLY 1980S THIS WAS A PERIOD OF VERY POOR PERFORMANCE FOR STOCKS BONDS REAL WEALTH CREATION AND REAL OUTPUT GROWTH THIS IS WHY THE FED SHOULD NOT EASE RIGHT NOW EVEN WITH THE SOFTNESS IN GOLD AND COMMODITIES A 15 GROWTH RATE FOR THE MONETARY BASE IS FINE AS A COUNTER TO DEFLATIONARY PRESSURE EMANATING FROM EUROPE JAPAN AND ELSEWHERE BUT THE FED MUST BE WARY OF THE EXPECTED TAXHIKE EFFECTS ON MONEY FROM THE PRESIDENT'S CONTRACTIONARY FISCAL PACKAGE EACH NEW DOLLAR OF BASE MONEY ADDED TO THE BANKING SYSTEM BY THE FED BECOMES MORE INFLATIONARY UNDER A REGIME OF RISING TAX BURDENS AND REDUCED ECONOMIC GROWTH THE POTENTIAL FISCAL INFLUENCE ON MONETARY POLICY IS A GRAVE IF OFTEN OVERLOOKED RISK TO PRICE STABILITY WE KNOW THAT THE CLINTONITES PREFER A CHEAPER DOLLAR EXCHANGE RATE INTERNATIONALLY AND A NEW WHIFF OF INFLATION DOMESTICALLY WE KNOW THEY PREFER TO SUBSTITUTE FEDERAL RESERVE MONEY CREATION FOR PRIVATESECTOR GOODS CREATION WE KNOW THEY ARE RAISING TAXES TO FINANCE A LARGER FEDERAL GOVERNMENT SHARE OF THE ECONOMY RATHER THAN TO REDUCE THE BUDGET DEFICIT WE ALSO KNOW THAT THE SENATE BANKING COMMITTEE HAS ORDERED ALL 12 RESERVE BANK PRESIDENTS TO APPEAR AT A HEARING NEXT MONTH UNDOUBTEDLY FOR A LECTURE ON THE MERITS OF EASY MONEY BUT WE DO NOT YET KNOW WHETHER GREENSPAN & CO CAN AGAIN BE RELIED UPON NOT TO ACT AS A WILLING ACCOMPLICE IT'S BAD ENOUGH TO LIVE THROUGH UNSOUND FISCAL POLICIES BUT UNSOUND MONEY WILL MAKE THE PROBLEM EVEN WORSE MR KUDLOW IS CHIEF ECONOMIST AT BEAR STEARNS 9303080120 930308 WHO'S NEWS TOYS R US INC TOYS R US INC PARAMUS NJ KRISTOPHER M BROWN 38 YEARS OLD WAS NAMED VICE PRESIDENT OF DISTRIBUTION OPERATIONS FOR THIS TOY RETAILER GAYLE C AERTKER 37 WAS NAMED VICE PRESIDENT REAL ESTATE AND HARVEY J FINKEL 42 WAS NAMED REGIONAL VICE PRESIDENT 9303080119 930308 WHO'S NEWS CAPITAL RE CORP CAPITAL RE CORP NEW YORK THIS REINSURER OF MUNICIPAL BONDS AND OTHER FINANCIAL GUARANTEES APPOINTED THREE NEW DIRECTORS EXPANDING ITS BOARD TO NINE MEMBERS RICHARD L HUBER 56YEAROLD VICE CHAIRMAN OF CONTINENTAL BANK CORP AND PHILIP ROBINSON 67 CHAIRMAN OF SUNBURY INVESTMENT CO OF KENT ENGLAND GET NEW BOARD SEATS THOMAS D RUANE 42 A PARTNER WITH THE LAW FIRM OF ROBINSON ST JOHN & WAYNE OF NEWARK NJ WAS NAMED TO SUCCEED DENNIS GISH 9303080118 930308 POLITICS & POLICY PUNDITS PRAISE CLINTON'S START BUT SEE DANGERS IN THREE H'S HILLARY HEALTH CARE AND HUBRIS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EVEN THE REPUBLICANS ON THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS GRUDGINGLY AGREE THAT DEMOCRATIC PRESIDENT BILL CLINTON IS OFF TO A GOOD START NOT BAD SAYS GOP STRATEGIST JOHN SEARS HE'S MAKING SOME ATTEMPT TO DEAL WITH THE COUNTRY'S PROBLEMS EVEN IF HE IS LIVING OFF WHAT PEOPLE SAW LACKING IN GEORGE BUSH THE BASIC FRAMEWORK OF THE ECONOMIC PACKAGE IS POLITICALLY EFFECTIVE SAYS MAVERICK REPUBLICAN THEORETICIAN KEVIN PHILLIPS IT'S QUITE CLEAR THE MIDDLE CLASS LIKES TAXES ON THE TOP 1 THE DEMOCRATS ARE PREDICTABLY UPBEAT IF HE GETS THIS PACKAGE THROUGH AND THE ECONOMY CONTINUES TO GO UP SAYS DEMOCRATIC STRATEGIST ALAN BARON HE'S IN GOOD SHAPE ADDS DEMOCRATIC CONSULTANT GREG SCHNEIDERS HE CAME THROUGH WITH A CREDIBLE ECONOMIC PACKAGE AND HE'S DONE A GOOD JOB OF SELLING IT BUT THE PANELISTS ALWAYS A SKEPTICAL LOT SEE DANGERS LURKING THEY WARN OF THE POSSIBILITY OF A KIND OF TRIPLEH WHAMMY HILLARY HEALTH CARE AND HUBRIS MRS CLINTON THE PANELISTS SAY IS THE FIRST FIRST LADY WITH A POWER AGENDA IF SHE DOES VERY WELL SAYS MR SEARS NOBODY WILL MIND BUT WHAT IF SHE FAILS AS MR SEARS THINKS SHE WILL IT'S HARD TO GET RID OF YOUR WIFE IF SHE'S NOT PERFORMING IN HER JOB SAYS MR SCHNEIDERS IT'S A VERY DEFINITE RISK SAYS MR SEARS IT REDEFINES THE PRESIDENCY EITHER IN SUCCESS OR FAILURE SAYS MR PHILLIPS IF SHE FAILS OBVIOUSLY YOU GET ALL KINDS OF QUESTIONS BEING RAISED LEGALLY POLITICALLY BY PEOPLE IN CONGRESS AND IF SHE SUCCEEDS I THINK IT RAISES THE QUESTION OF WHETHER WE DON'T HAVE A NEW TYPE OF RELATIONSHIP THAT I HATE TO CALL QUASIMONARCHICAL BUT HOW ELSE DO YOU GET A CHIEF OF STATE AND AN UNELECTED CONSORT EXCEPT IN A QUASIMONARCHICAL SITUATION MR SCHNEIDERS WORRIES THAT MRS CLINTON WILL BECOME A LIGHTNING ROD FOR BOLTS DIRECTED AT HER HUSBAND AND WHETHER YOU WANT YOUR WIFE TO BE A LIGHTNING ROD FOR YOU IS HIGHLY QUESTIONABLE HE SAYS MR BARON WONDERS IF PEOPLE WORKING FOR THE PRESIDENT WILL BE AFRAID TO CHALLENGE HER HISTORIANS AND LEGAL SCHOLARS WILL BE TALKING ABOUT MRS CLINTON'S ROLE IN THIS ADMINISTRATION FOR YEARS THE PANELISTS SAY THE PANELISTS AGREE THAT MRS CLINTON HAS TAKEN ON THE MOST INTRACTABLE PROBLEM THE COUNTRY FACES HEALTH CARE IT'S THE BIGGEST PROBLEM OUT THERE SAYS MR SCHNEIDERS WHO HAS HIMSELF WORKED FOR SOME HEALTH CARE INTERESTS INCLUDING INSURERS AND PHARMACEUTICAL MAKERS IT'S GOING TO BE HARDER THAN THE ECONOMIC PACKAGE IT HAS LESS CHANCE TO SUCCEED IN THE CONGRESS AND LESS CHANCE OF WORKING IF THEY HAPPEN TO GET IT PASSED HE SAYS THE ADMINISTRATION WILL TAKE HITS ON THE HEALTHCARE PACKAGE AND SHE'S GOING TO BE THE ONE THAT HAS TO TAKE THEM THE DEMOCRATIC PANELISTS ALSO WORRY THAT THE ADMINISTRATION MAY BE BITING OFF MORE THAN IT CAN CHEW MR CLINTON'S BIGGEST DANGER IS HUBRIS MR SCHNEIDERS SAYS HE'S HEADED INTO THE ECONOMIC BATTLE WITH THE HEALTH CARE BATTLE EITHER RIGHT ON ITS HEELS OR ROLLED INTO IT SOMEHOW HE HAS THE BEGINNINGS OF WHAT LOOKS LIKE AN INDUSTRIAL POLICY AND THERE'S ALL THE TALK ABOUT TRADE I THINK HE'S INTO TOO MANY THINGS AT ONE TIME THE REPUBLICANS THE PANELISTS SAY FACE EVEN BIGGER PROBLEMS THEY ARE BEING FORCED TO DO SOMETHING WHICH IS VERY HARD SAYS MR PHILLIPS THEY HAVE TO COME TO TERMS WITH THE FACT THAT THE PREVAILING PUBLIC VIEW OF THEIR TENURE IN THE PREVIOUS ADMINISTRATIONS HAS TURNED SOUR THE REPUBLICANS LOST THE REFERENDUM ON THE ECONOMICS OF THE LAST FOUR OR SIX YEARS NOW SAYS MR SEARS THEY'RE GOING TO HAVE TO REESTABLISH THE IDEA THAT WHAT THEY'RE REALLY FOR IS OPPORTUNITY AND NOT JUST FOR FEATHERING THE NESTS OF THE RICH AND PROTECTING OPPORTUNISTS AND EVEN PEOPLE WHO MADE A LOT OF MONEY IN LEVERAGED BUYOUTS AND THE SAVINGS AND LOAN SCANDAL AND JUNK BONDS THERE IS NO POINT THE PANELISTS AGREE IN LOOKING BACK AND TRYING TO CONVINCE THE VOTERS THAT THE REAGANBUSH YEARS WERE GOOD FOR THE COUNTRY THE REPUBLICANS REALLY OUGHT TO CONSULT SOME DEMOCRATS MR SCHNEIDERS SAYS IF WE'VE LEARNED ANYTHING FROM LOSING ALL THOSE PRESIDENTIAL ELECTIONS IT WAS THAT POLITICS AND ELECTIONS ARE ALMOST ALWAYS ABOUT THE FUTURE AND NOT ABOUT THE PAST MR SEARS THINKS REPUBLICANS COULD AT LEAST BEGIN LAYING THE GROUNDWORK FOR A COMEBACK THEY COULD START PREDICTING THAT IN A YEAR A YEAR AND A HALF WE'RE GOING TO SEE INFLATION AND A LOT OF IT AND THAT THE MIDDLE CLASS IS GOING TO BEAR THE BRUNT OF IT START PREDICTING IT NOW THE REPUBLICANS SHOULD ALSO EMPHASIZE THEIR PARTY'S EXPERIENCE IN THE CONDUCT OF FOREIGN AFFAIRS IT'S ANOTHER CASE OF LAYING THE GROUNDWORK FOR THE TIME WHEN THE DEMOCRATS BEGIN TO GET IN TROUBLE ABROAD THEY'D BE IN A LITTLE TROUBLE TODAY OVER THE AIRDROP TO BOSNIA IF THEY WEREN'T STILL IN THEIR HONEYMOON PHASE WITH THE VOTERS SAYS MR SEARS IT'S A FIASCO HE SAYS SEEMINGLY ALL THE FOOD DROP HAS ACCOMPLISHED IS TO DRAW THE STARVING OUT OF THE HILLS SO THEY COULD GET SHOT THERE IS A TRADITION IN THE DEMOCRATIC PARTY GOING BACK TO WOODROW WILSON SAYS MR PHILLIPS OF GETTING INVOLVED OVERSEAS BECAUSE OF THIS MORAL DOGOODER IMPERATIVE IT'S EASY FOR ME TO IMAGINE THE DEMOCRATS GETTING INVOLVED IN SOMETHING INTERNATIONALLY THAT WOULD BE A MINUS FOR THEM MR BARON AGREES THE TENDENCY AS TIME GOES ON WILL BE TO GET MORE INVOLVED OVERSEAS BECAUSE DOMESTIC POLITICS BECOMES SO DIFFICULT MR SCHNEIDERS ISN'T SO SURE THIS DEMOCRATIC ADMINISTRATION MAY BE DIFFERENT LOOK AT THE CUT IN THE FOREIGN AID BUDGET WHICH YOU WOULD HAVE THOUGHT WOULD HAVE BEEN ANATHEMA TO ENLIGHTENED DEMOCRATIC ADMINISTRATIONS BUT IT'S POLITICALLY POPULAR AND I THINK IT'S AN INDICATION OF CLINTON'S POLITICAL SKILLS IN THIS AREA MESMERIZED BY PEROT THE PANELISTS REMAIN MESMERIZED BY THE ROLE ROSS PEROT IS PLAYING NOW IN AMERICAN POLITICS AND MAY PLAY IN THE YEARS TO COME IN A WAY SAYS MR SEARS PEROT CAME OUT OF THIS ELECTION MORE POWERFUL THAN ANYONE HE DOESN'T HAVE ANY RESPONSIBILITIES HE DOESN'T HAVE TO CREATE PROGRAMS AND HE'S ENJOYING IT A GREAT DEAL MR SCHNEIDERS IS CONVINCED THAT GIVEN HIS EGO MR PEROT WILL ULTIMATELY SUCCUMB TO THE DESIRE TO RUN FOR PRESIDENT THE NEXT TIME REPUBLICANS MR PHILLIPS SAYS DESPERATELY NEED TO WIN BACK THEIR VOTE THAT DEFECTED TO MR PEROT LAST YEAR WITHOUT THAT VOTE HE SAYS THEY ARE UP THE CREEK WITH A POPSICLE STICK FOR A PADDLE BUT THE PANELISTS ARE PUZZLED IN TRYING TO PREDICT WHAT MR PEROT MIGHT DECIDE TO DO MR PHILLIPS THINKS HE MIGHT BE IN A POSITION TO LAUNCH A NEW CENTRIST MOVEMENT PARTY ESPECIALLY IF MR CLINTON FAILS TO ADDRESS THE COUNTRY'S ECONOMIC PROBLEMS MR BARON THINKS MR PEROT WILL PROBABLY END UP DOING WHAT HE DID LAST TIME RUN FOR PRESIDENT AS AN INDEPENDENT BUT ALL THE PANELISTS ARE INTRIGUED BY ANOTHER IDEA THAT HE MIGHT RUN AS A MODERN VERSION OF A BULL MOOSE REPUBLICAN SURE HE COULD DO IT SAYS MR SEARS HE COULD PLAY THE ROLE OF UNBIASED OBSERVER FOR A COUPLE OF YEARS AND THEN JUST RUN ON HIS OWN PLATFORM HE WAS VERY STRONG IN THE EARLY VOTING STATES IN 1992 NEW HAMPSHIRE AND IOWA SAYS MR PHILLIPS IF HE WERE TO GET IN THE RACE YOU COULD PROBABLY SAY HE'D BE THE FAVORITE IN REPUBLICAN PRIMARIES IN FLORIDA TEXAS AND CALIFORNIA I THINK ANY REPUBLICAN WHO THINKS THIS IS A NICE SITUATION IS A LITTLE FOOLISH SAYS MR SEARS MR SCHNEIDERS WARNS THAT MR PEROT TENDS TO GO UP IN THE POLLS WHEN HE'S IN THE ROLE OF WATCHDOG OR NATIONAL OMBUDSMAN AS HE IS NOW AND THEN PLUNGE IN POPULAR ESTEEM WHEN HE ACTUALLY BEGINS TO RUN THE WACKO SIDE IS MORE OBVIOUS THEN HE SAYS 9303080117 930308 WHO'S NEWS HANDLEMAN CO HANDLEMAN CO TROY MICH LOUIS A KIRCOS 39 YEARS OLD WAS PROMOTED TO THE NEW POSITION OF SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT AND SUBSIDIARIES AT THIS DISTRIBUTOR OF SOFTWARE AND RECORDED MUSIC AND VIDEO HE PREVIOUSLY SERVED AS CHIEF FINANCIAL OFFICER THE COMPANY IS SEARCHING FOR A NEW CHIEF FINANCIAL OFFICER 9303080116 930308 TECHNOLOGY COMPREHENSIVE CARE WILL CHANGE ITS FOCUS FROM BEHAVIORAL WORK ST LOUIS COMPREHENSIVE CARE CORP SAID IT WILL SHIFT THE PRIMARY FOCUS OF ITS BUSINESS AWAY FROM INPATIENT BEHAVIORAL MEDICINE AND TOWARD MANAGED CARE AND CONTRACT MANAGEMENT SERVICES THE COMPANY ALSO SAID IT PLANS TO CLOSE FIVE OF ITS INPATIENT FACILITIES AND TO MODIFY OPERATIONS AT SEVERAL OTHERS THE MOVE FRIDAY CAME JUST A DAY AFTER CHARTER MEDICAL CORP A PSYCHIATRIC HOSPITAL OPERATOR OUSTED ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND SAID IT WOULD MOVE FASTER TO CLOSE UNDERPERFORMING HOSPITALS SUCH INPATIENT PSYCHIATRIC CARE BUSINESSES HAVE SUFFERED FROM GOVERNMENT AND BUSINESS PRESSURES TO CUT COSTS COMPREHENSIVE CARE SAID IT WILL USE ITS ACCESSCARE UNIT TO LEAD ITS FORAY INTO THE MANAGED CARE BUSINESS THE COMPANY FORMED ACCESSCARE AFTER ITS JANUARY ACQUISITION OF MENTAL HEALTH PROGRAMS CORP A MENTAL HEALTH CARE MANAGEMENT CONCERN COMPREHENSIVE CARE ALSO SAID IT ANTICIPATES SIGNIFICANT GROWTH IN ITS CONTRACT MANAGEMENT DIVISION THE COMPANY SAID THAT BY THE END OF ITS CURRENT FISCAL YEAR MAY 31 IT WILL BE PROVIDING MANAGED CARE SERVICES TO MORE THAN ONE MILLION PEOPLE 9303080115 930308 WHO'S NEWS MILESTONE PROPERTIES MILESTONE PROPERTIES BOCA RATON FLA DAVID A BERNARD 46 YEARS OLD HAS RESIGNED HIS POSITION AS CHIEF OPERATING OFFICER OF THIS REAL ESTATE AND SHOPPING CENTER MANAGER A COMPANY SPOKESWOMAN SAID MR BERNARD WHO COULDN'T BE REACHED FOR COMMENT RESIGNED TO PURSUE OTHER INTERESTS MR BERNARD HAS BEEN WITH THE COMPANY SINCE 1990 A SUCCESSOR HAS NOT YET BEEN NAMED 9303080113 930308 WHO'S NEWS FUJISAWA USA INC FUJISAWA USA INC DEERFIELD ILL HATSUO AOKI WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS PHARMACEUTICAL CONCERN THE US UNIT OF FUJISAWA PHARMACEUTICAL LTD OF OSAKA JAPAN DR AOKI SUCCEEDS TAKASHI AOKI WHO RESIGNED IN JANUARY 9303080112 930308 QUEBEC PENSION FUND CHALLENGES LEGALITY OF BID FOR UNIVA INC MONTREAL CAISSE DE DEPOT & PLACEMENT DU QUEBEC HARDENING ITS OPPOSITION TO THE PROPOSED 16 BILLION CANADIAN DOLLAR US13 BILLION ACQUISITION OF UNIVA INC BY BLACKSTONE CAPITAL PARTNERS LP AND UNIGESCO INC CHALLENGED THE LEGALITY OF THE DEAL'S STRUCTURE THE CAISSE WHICH MANAGES QUEBEC PENSION FUNDS HOLDS A 17 STAKE IN UNIVA A SUPERMARKET OPERATOR IT SAID ITS LEGAL ADVISERS INDICATED THE PROPOSED TRANSACTION WOULD ALLOW THE BLACKSTONEUNIGESCO INVESTOR GROUP TO DO INDIRECTLY WHAT THE LAW DOESN'T ALLOW IT TO DO DIRECTLY UNIGESCO UNIVA'S PRINCIPAL SHAREHOLDER SAID THE PROPOSAL IS FULLY LEGAL THE CAISSE'S OBJECTION CENTERS ON THE AMOUNT OF SHAREHOLDER VOTES NEEDED FOR APPROVAL UNDER THE BLACKSTONEUNIGESCO PLAN UNIVA WOULD BE MERGED WITH A NEW COMPANY CREATED BY THE INVESTOR GROUP CONTINGENT ON ACCEPTANCE BY HOLDERS OF TWOTHIRDS OF ALL UNIVA SHARES AND MORE THAN 50 OF MINORITY SHARES BUT THE CAISSE SAID THAT WHILE THE TRANSACTION IS PRESENTED AS A MERGER IT IS IN FACT AN ACQUISITION PROPOSAL A CAISSE SPOKESWOMAN SAID A STRAIGHTFORWARD TAKEOVER WOULD REQUIRE 90 OF ALL SHARES TO BE TENDERED IN ORDER FOR REMAINING SHAREHOLDERS TO BE FORCED TO SELL THAT WOULD ENABLE THE CAISSE TO HOLD OUT AGAINST THE C11ASHARE PROPOSAL THAT IT ALSO SAYS IT OPPOSES ON FINANCIAL GROUNDS IN TRADING IN MONTREAL FRIDAY UNIVA'S STOCK PLUNGED TO C938 A SHARE AFTER THE CAISSE ANNOUNCEMENT BUT RECOVERED TO CLOSE AT C963 DOWN 37 CENTS UNIGESCO IN RESPONSE TO THE CAISSE STATEMENT SAID CANADIAN LAW EXPLICITLY PROVIDES FOR TRANSACTIONS SUCH AS THE PROPOSED MERGER UNIVA'S PROVIGO SUPERMARKET CHAIN IS REGARDED IN QUEBEC AS A SYMBOL OF THE RISE OF A FRENCHSPEAKING BUSINESS CLASS AND THE CAISSE HAS PLAYED A MAJOR ROLE IN THE COMPANY'S EVOLUTION THE PROPOSAL TO TRANSFER MAJORITY CONTROL OF UNIVA TO BLACKSTONE A NEW YORK INVESTMENT FUND HAS SPARKED CONTROVERSY IN QUEBEC 9303080111 930308 POLITICS & POLICY ASPIN CONSIDERS CLOSING THREE DOZEN MILITARY BASES WASHINGTON DEFENSE SECRETARY LES ASPIN IS CONSIDERING SUGGESTIONS FROM THE ARMED SERVICES FOR CLOSING ABOUT THREE DOZEN MAJOR MILITARY BASES ACROSS THE US A PENTAGON OFFICIAL SAID THE MOST SIGNIFICANT INSTALLATIONS ON THE LIST ARE NAVY FACILITIES IN ORLANDO FLA NEW LONDON CONN AND CHARLESTON SC THE NAVY HAD LARGELY ESCAPED MAJOR CLOSINGS IN THE LAST TWO ROUNDS OF BASE CLOSINGS IN 1988 AND 1991 AND SO HAS BEEN WIDELY EXPECTED TO TAKE THE BIGGEST HIT IN THIS YEAR'S ROUND ALSO ON THE LIST BEING CONSIDERED BY MR ASPIN ARE SEVERAL SMALLER NAVY AND MARINE INSTALLATIONS IN CALIFORNIA BUT THE NAVAL SHIPYARD AT PORTSMOUTH NH WHICH HAD BEEN SEEN AS A CANDIDATE FOR CLOSURE ISN'T CURRENTLY ON THE LIST THERE ISN'T YET A FINAL LIST THE PENTAGON OFFICIAL SAID IT COULD CHANGE IN AN APPEARANCE YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY MR ASPIN PREDICTED THAT THE INDEPENDENT BASECLOSING COMMISSION WOULD RECOMMEND THE MOTHER OF ALL BASECLOSING LISTS BY NEXT MONDAY THE DEFENSE SECRETARY IS REQUIRED BY LAW TO SUBMIT HIS LIST OF SUGGESTED CLOSINGS TO THE INDEPENDENT BASE CLOSING AND REALIGNMENT COMMISSION THE COMMISSION'S FINAL CHOICES WILL BE VOTED ON AS A PACKAGE BY CONGRESS SOMETIME THIS SUMMER 9303080110 930308 HOUSE WINES FOR THESE BRUNCHES OF COURSE WILL BE FROM GRAVES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE LUNCH HOUR AT A FEW NEW JERSEY RESTAURANTS HAS RECEIVED A JOLT OF LIFE FROM SOME UNLIKELY PATRONS FUNERALGOERS CALLED REPASTS MERCY LUNCHES OR FUNERAL BRUNCHES THE MEALS ARE GAINING POPULARITY AMONG THE BEREAVED IN BERGEN AND HUDSON COUNTIES SOME AREA RESTAURANTS HAVE OFFERED THESE LUNCHEONS FOR YEARS BUT THEIR ADVERTISING FOR THE MOST PART WAS WORDOFMOUTH REFERRALS WERE MADE BY FRIENDS OR FUNERALHOME DIRECTORS WHO HAD AN INFORMAL LIST OF EATERIES THAT COULD ACCOMMODATE A SIZABLE LUNCHEON PARTY FOR A TIME GETTING SUCH BUSINESS WAS GRAVY A LITTLE EXTRA MONEY THAT WAS WELCOME BUT NOT SOMETHING THE RESTAURANTS PURSUED WITH ANY VIGOR ONLY WHEN THE RECESSION HIT AND LUNCHTIME BUSINESS STARTED TO SAG DID MORE RESTAURANTS HOP ON THE FUNERALBRUNCH CHUCKWAGON IT'S GOTTEN TO THE POINT WHERE ANYBODY WITH A ROOM HAS JUMPED IN SAYS DENNIS EAGAN OF EAGAN'S RESTAURANT IN NORTH ARLINGTON DEMAND BY LOCAL RESTAURANTS SUCH AS PINOCCHIO'S CLUB COCOMO AND CHUM'S TO ADVERTISE THESE BRUNCHES PROMPTED THE OBSERVER A WEEKLY NEWSPAPER IN KEARNY NJ TO CREATE A FUNERAL BRUNCHES SECTION ON ITS OBITUARY PAGE AT THE MOUNTAINSIDE INN IN CLIFTON AS MANY AS THREE TO FOUR OF THESE GATHERINGS HAVE BEEN HELD ON A SINGLE DAY SAYS LOU BARBATO ONE OF THE OWNERS IN THE BEGINNING SOME PEOPLE THOUGHT IT WAS A LITTLE STRANGE BUT NOW IT'S COMMONPLACE HE SAYS ADDING THAT PEOPLE APPRECIATE THE CONVENIENCE OF HAVING SOMEONE ELSE PREPARE THE FOOD DURING WHAT CAN BE A DIFFICULT TIME IT MADE IT SEEM LIKE A PARTY BY HAVING IT IN A RESTAURANT BUT PEOPLE REALIZED THEY HAD A NEED AND THEIR HOUSES WERE TOO SMALL AT MOST OF THE RESTAURANTS SUCH BRUNCHES ARE SIMPLE AFFAIRS SOUP HOT ENTREE SALAD DESSERT COFFEE OR TEA AND A BEVERAGE PRICES START AT 795 A PERSON WITH THE AVERAGE ABOUT 10 MR EAGAN SAYS HIS RESTAURANT HAS PLAYED HOST TO SUCH LUNCHEONS FOR A GOOD 25 TO 30 YEARS HAVING THE FUNERAL CROWD HE SAYS FILLS OUR ROOM AND GIVES YOU EXPOSURE IT'S NICE AND USUALLY PROFITABLE HE SHOULD KNOW EAGAN'S SITS IN PRIME FUNERAL TERRITORY ONE CEMETERY IS RIGHT ACROSS THE STREET AND A SECOND IS JUST A FEW BLOCKS AWAY 9303080109 930308 WHO'S NEWS CHAMPION PARTS INC CHAMPION PARTS INC OAK BROOK ILL DONALD G SANTUCCI 56YEAROLD FOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DEK INC WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS AUTOMOTIVE REPLACEMENT PARTS REMANUFACTURER MR SANTUCCI WHO HAS BEEN A DIRECTOR SINCE 1975 SUCCEEDS RAYMOND G PERELMAN WHO RESIGNED FROM THE POST IN JANUARY BUT CONTINUES AHAIRMAN ALSO THOMAS W BLASHILL 33 CHIEF FINANCIAL OFFICER AND VICE PRESIDENT WAS PROMOTED TO EXECUTIVE VICE PRESIDENT 9303080108 930308 INTERNATIONAL ITALY MOVES TO EASE SCANDAL PENALTIES IGNITING PROTEST BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN A STORM OF PROTEST INCLUDING A CABINET RESIGNATION ERUPTED AFTER THE GOVERNMENT APPROVED MEASURES TO LIGHTEN SOME PENALTIES FOR THOSE INVOLVED IN ITALY'S CORRUPTION SCANDAL THE MEASURES ARE DESIGNED TO SPEED UP THE JUDICIAL PROCESS RESTART CONSTRUCTION PROJECTS STALLED BY INVESTIGATIONS AND PROVIDE INCENTIVES TO THOSE WHO CONFESS CRIMES OF EXTORTION AND CORRUPTION IN RETURN FOR LIGHTER PRISON SENTENCES THE PACKAGE ALSO CONTAINS A CONTROVERSIAL DECREE LAW ON POLITICALPARTY FINANCING THAT AMONG OTHER THINGS ELIMINATES PRISON SENTENCES FOR OFFENDERS OVER THE WEEKEND OPPOSITION LEADERS AND SOME MEMBERS OF PRIME MINISTER GIULIANO AMATO'S GOVERNING COALITION ATTACKED THE PACKAGE ENVIRONMENT MINISTER CARLO RIPA DI MEANA A FORMER SOCIALIST WHO RECENTLY DROPPED OUT OF THE PARTY RESIGNED SUNDAY IN PROTEST OTHER POLITICAL LEADERS AS WELL AS INVESTIGATING MAGISTRATES COMPLAINED IN PARTICULAR ABOUT THE GOVERNMENT'S METHOD OF USING DECREES A DECREE GOES INTO EFFECT IMMEDIATELY AND THEN MUST BE PASSED BY PARLIAMENT WITHIN THREE MONTHS IT'S INADMISSABLE THAT THE SAME PEOPLE WHO ARE RESPONSIBLE FOR TANGENTOPOLI KICKBACK CITY ARE THE SAME ONES WHO DECIDE WITH DECREE LAWS WHAT WILL HAPPEN TO OFFENDERS SAID SERGIO GARAVINI LEADER OF THE SPLINTER COMMUNIST PARTY COMMUNIST REFOUNDATION EVEN SOME POTENTIAL BENEFICIARIES OF THE PLAN OBJECTED TO IT GIORGIO LA MALFA FORMER SECRETARY OF THE INFLUENTIAL REPUBLICAN PARTY WHO RESIGNED FEB 25 AFTER BEING NOTIFIED THAT HE IS UNDER INVESTIGATION FOR RECEIVING ILLEGAL CONTRIBUTIONS OF 50 MILLION LIRE 32000 FOR THE PARTY SAID THE MEASURE WOULD RILE PUBLIC OPINION MEANWHILE MILAN MAGISTRATES ISSUED A STATEMENT WARNING THAT THE NEW LAWS WILL OBSTRUCT INVESTIGATIONS THE MOST CONTROVERSIAL PART OF THE PLAN IS A DECREE ON POLITICALPARTY FINANCING THAT RETROACTIVELY REDUCES THE ACT FROM A SERIOUS CRIMINAL OFFENSE TO AN ADMINISTRATIVE IRREGULARITY PROPONENTS OF THE PLAN SAY IT WILL SPEED THE JUDICIAL PROCESS WHICH OTHERWISE COULD ENSNARL COURTS FOR A DECADE BECAUSE OF THE DOZENS OF POLITICIANS INVOLVED THEY SAY THE DECREE ABOLISHES PRISON SENTENCES FOR THOSE WHO ILLEGALLY FINANCE THEIR CAMPAIGNS OR POLITICAL PARTIES INSTEAD OFFENDERS MUST REPAY THREE TIMES THE AMOUNT OF MONEY RECEIVED ILLEGALLY AND ARE BANNED FROM HOLDING RESPONSIBLE POLITICAL OR BUSINESS POSITIONS FOR THREE TO FIVE YEARS UPON CONVICTION 9303080107 930308 BUSINESS BRIEF LENNAR EXPECTS HOMEOWNERS' LAWSUITS FROM HURRICANE WILL BE SETTLED SOON MIAMI LENNAR CORP SAID THAT IT EXPECTS TO SETTLE HURRICANERELATED LAWSUITS BY HOMEOWNERS SOON BUT THAT INSURERS HAVE INFORMED THE COMPANY THEY HAVE THE RIGHT TO BRING THEIR OWN CLAIMS AT LEAST ONE INSURER HAS INDICATED ITS INTENT TO ASSERT CLAIMS AGAINST THE COMPANY LENNAR STATED IN A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE HOMEBUILDER WOULDN'T NAME THE INSURER AND SAID NO SUITS HAVE BEEN FILED AGAINST IT BY INSURERS OF HOMES DAMAGED BY HURRICANE ANDREW LAST FALL HOMEOWNERS WHO SUED LENNAR CLAIMING SHODDY CONSTRUCTION SAID EARLIER THIS YEAR THEY HAD BEEN OFFERED ABOUT 6800 EACH TO SETTLE THEIR CASES WITH 350 HOMES INVOLVED THE SETTLEMENT WOULD TOTAL ABOUT 24 MILLION ALLAN J PEKOR LENNAR'S FINANCIAL VICE PRESIDENT CONFIRMED THAT FIGURE FRIDAY BUT SAID IT FALLS WELL WITHIN LENNAR'S 40 MILLION INSURANCE POLICY AN ATTORNEY FOR LENNAR HOMEOWNERS DECLINED COMMENT SOME TRIAL LAWYERS IN MIAMI SAID THEY EXPECT TO SEE SUBSTANTIAL LITIGATION AGAINST HOMEBUILDERS BY PROPERTY INSURERS WHO HAVE BEEN COMPUTING THE DIFFERENCE BETWEEN THE RESIDENTIAL CLAIMS THEY PAID AND THE CLAIMS THEY WOULD HAVE PAID HAD CONSTRUCTION IN THEIR VIEW BEEN PROPER BUT MR PEKOR SAID A COMPANY ATTORNEY HAD INDICATED THAT SUCH SUITS PROBABLY WOULDN'T BE SUCCESSFUL SEPARATELY LENNAR DISCLOSED IN ITS PROXY STATEMENT THAT IT AWARDED ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER LEONARD MILLER A 227000 BONUS FOR 1992 BRINGING HIS TOTAL COMPENSATION TO 630182 COMPARED WITH 379719 IN 1991 THE COMPANY SAID MR MILLER'S SALARY WAS MODEST FOR A COMPANY THE SIZE AND STATURE OF LENNAR CORP AND THAT THE BONUS AMOUNTED TO 05 OF PRETAX NET INCOME FOR THE YEAR THAT ENDED IN NOVEMBER MR MILLER'S SON STUART WHO HEADS LENNAR'S HOMEBUILDING DIVISION AND STEVEN J SAIONTZ WHO HEADS LENNAR'S FINANCE DIVISION ALSO GOT BONUSES OF 113000 EACH 9303080106 930308 PURINA MILLS IS PLACED ON SALES BLOCK BY BP ST LOUIS AP THE PARENT COMPANY OF PURINA MILLS IS REORGANIZING AND HAS PUT THE BIG ANIMALFEED BUSINESS ON THE BLOCK BP NUTRITION A SUBSIDIARY OF BRITISH PETROLEUM PLC SAID IT HIRED FIRST BOSTON CORP TO EXAMINE WAYS TO SELL PURINA MILLS THE LARGE MAKER OF ANIMAL FEEDS BP NUTRITION BOUGHT PURINA MILLS FROM ST LOUISBASED RALSTON PURINA CO FOR 545 MILLION IN 1986 PURINA MILLS HAD BEEN THE FOUNDATION OF RALSTON PURINA WHICH IS NOW A MAJOR MARKETER OF PET FOOD BAKED GOODS BATTERIES CEREAL AND BABY FOOD PURINA MILLS HAS ABOUT 500 EMPLOYEES IN THE ST LOUIS AREA THE PROPOSED SALE OF PURINA MILLS IS PART OF AN ASSET SELLOFF BY BRITISH PETROLEUM IN LONDON THE COMPANY HAS BEEN RESTRUCTURING OVER THE PAST 12 MONTHS AND EXPECTS TO SELL 2 BILLION OF ASSETS THIS YEAR THE COMPANY HAS SAID IT PLANS TO CONCENTRATE ON EXPLORATION REFINING AND MARKETING OF PETROLEUM AND ON ITS CHEMICAL BUSINESSES 9303080105 930308 CORRECTIONS & AMPLIFICATIONS MEDICARE REIMBURSES PHYSICIANS AN AVERAGE OF 65 OF WHAT PRIVATE INSURERS PAY ACCORDING TO AN OFFICIAL OF THE PHYSICIAN PAYMENT REVIEW COMMISSION WHICH ADVISES CONGRESS ON THE FEDERAL HEALTH PROGRAM'S DOCTOR PAYMENT POLICY THE REIMBURSEMENT RATE VARIES AMONG MEDICAL SPECIALTIES AN ARTICLE TUESDAY INCORRECTLY REPORTED THE MEDICARE REIMBURSEMENT RATE AS 90 THE JUSTICE DEPARTMENT IS CURRENTLY REVIEWING GTE CORP'S PLAN TO MOVE ITS QUERY RESPONSE SERVICE A CALLINGCARD VALIDATION SERVICE TO A NEW SUBSIDIARY IN A FEB 25 ARTICLE A GTE SPOKESWOMAN INCORRECTLY INDICATED THAT THE JUSTICE DEPARTMENT HAD APPROVED THE PLAN STURM RUGER & CO'S CHAIRMAN WILLIAM B RUGER EXPECTS THE EARNINGS INCREASE IN 1993 TO BE GOOD BUT IT MAY NOT MATCH THE RATE OF GAIN IN 1992 WHICH INCREASED 52 FROM 1991 IN AN ARTICLE FRIDAY IT WAS INCORRECTLY REPORTED THAT MR RUGER SAID 1993 EARNINGS MAY NOT MATCH 1992 RESULTS THE NEW YORK STOCK EXCHANGE ELECTED J GARY BURKHEAD 51YEAROLD PRESIDENT OF FIDELITY MANAGEMENT & RESEARCH CO AND RICHARD B FISHER 56 CHAIRMAN OF MORGAN STANLEY GROUP INC TO ITS BOARD THEIR AGES WERE INCORRECTLY LISTED IN FRIDAY'S WHO'S NEWS COLUMN BASED ON INFORMATION SUPPLIED BY THE BIG BOARD AN OFFERING OF 29 MILLION COMMON SHARES OF DELMARVA POWER & LIGHT CO WAS PRICED AT 23375 A SHARE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO IN THURSDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE SHARES WERE PRICED AT 23875 EACH 9303080104 930308 INTERNATIONAL BRAZIL CREDITORS TO CLOSE 44 BILLION DEBT ACCORD NEW YORK BRAZIL AND ITS INTERNATIONAL CREDITORS EXPECT TO COMPLETE A 44 BILLION DEBT ACCORD ON SCHEDULE DESPITE THE COUNTRY'S WORSENING POLITICAL AND ECONOMIC WOES CITIBANK HEAD OF THE BANK RESTRUCTURING COMMITTEE SAYS IT STILL ANTICIPATES THAT FOREIGN BANK CREDITORS WILL RESPOND BY MARCH 15 TO A PLAN CRAFTED BY BRAZIL AND ITS LEADING BANKS THE PACT GIVES LENDERS A VARIETY OF OPTIONS WITH WHICH TO EXCHANGE THEIR EXISTING 44 BILLION IN PRINCIPAL AND INTEREST OWED BY BRAZIL THE AGREEMENT MODELED AFTER SOCALLED BRADY ACCORDS REACHED WITH OTHER DEVELOPING COUNTRIES INCLUDES THE EXCHANGE OF LOANS FOR HIGH QUALITY BONDS AND THE EXTENSION OF NEW MONEY BRAZIL'S LEADERS TRAVELED TO THE WORLD'S FINANCIAL CAPITALS LAST MONTH TO PERSUADE LENDERS AND OTHER HOLDERS OF BRAZIL'S DEBT TO SIGN ONTO THE ACCORD SO FAR CITIBANK A UNIT OF CITICORP HAS RECEIVED RESPONSES FROM OVER 60 OF THE CREDITORS THAT HOLD BRAZIL'S DEBT CITICORP HAS DECIDED TO PICK A NUMBER OF THE OPTIONS FOR ITS LOANS TO BRAZIL INCLUDING ADVANCING NEW MONEY 9303080103 930308 LAW LEGAL BEAT PROBLEMS WITH COURT INTERPRETERS RAISE CONSTITUTIONAL QUESTIONS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAST WEEK'S ARRAIGNMENT OF A MAN ARRESTED IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING ILLUSTRATED SOME PROBLEMS IN THE COURTINTERPRETER SYSTEM THAT HAVE LONG WORRIED DEFENSE LAWYERS AND ACADEMICS THE MAN MOHAMMED SALAMEH SPEAKS ARABIC AND SOME ENGLISH NO COURTCERTIFIED INTERPRETER WAS AVAILABLE FOR THE ARRAIGNMENT IN FEDERAL DISTRICT COURT SO AN EMPLOYEE OF THE FEDERAL BUREAU OF INVESTIGATION DID THE JOB INSTEAD ROBERT E PRECHT THE LEGAL AID SOCIETY ATTORNEY WHO REPRESENTED MR SALAMEH SAID HE WAS UNCOMFORTABLE WITH THE MAKESHIFT INTERPRETER I BELIEVE HE WAS TRYING TO SUMMARIZE WHAT THE PARTIES WERE SAYING MR PRECHT SAID HE WAS NOT ABLE TO TRANSLATE SIMULTANEOUSLY THAT IS TO INTERPRET A SENTENCE AS IT IS BEING SPOKEN MR SALAMEH WAS ARRAIGNED AT ABOUT 8 PM LONG AFTER THE COURTHOUSE'S INTERPRETER OFFICE CLOSED BECAUSE THE ONLY AVAILABLE INTERPRETER THE FBI EMPLOYEE WORKED FOR THE PROSECUTORS MR SALAMEH HAD NO WAY OF COMMUNICATING PRIVATELY WITH HIS LAWYER BEFORE THE ARRAIGNMENT THE ATTORNEY COMPLAINED TO THE JUDGE ABOUT THE ABSENCE OF AN APPROPRIATE INTERPRETER BUT ULTIMATELY AGREED TO USE THE FBI EMPLOYEE NEITHER FBI TASK FORCE MEMBERS NOR THE INTERPRETER WAS AVAILABLE TO COMMENT ACADEMICS WHO HAVE STUDIED THE ROLE OF INTERPRETERS IN THE COURTS SAY THAT WHILE THERE ARE SOME PROBLEMS WITH FEDERAL COURT INTERPRETERS INADEQUATE AND EVEN INCOMPETENT TRANSLATION IN STATE COURTS IS COMMONPLACE THE INADEQUACIES RAISE SERIOUS CONSTITUTIONAL ISSUES THEY SAY FEDERAL COURT INTERPRETERS TEND TO BE MORE SKILLED BECAUSE THE US GOVERNMENT ADMINISTERS A GRUELING TEST TO INTERPRETERS OF SPANISH HAITIAN CREOLE AND NAVAHO WHICH ARE USED IN MORE THAN 90 OF FEDERAL COURT INTERPRETATIONS MISINTERPRETATION SELDOM OCCURS WITH THOSE LANGUAGES SAID A SAMUEL ADELO A FEDERALLY CERTIFIED SPANISH INTERPRETER SINCE 1980 WHO WORKS IN SANTE FE NM THE CERTIFICATION IS VERY RIGOROUS HE SAID BUT CERTIFICATION ISN'T AVAILABLE FOR SUCH COMMONLY SPOKEN LANGUAGES AND DIALECTS AS JAPANESE CANTONESE AND ARABIC ALTHOUGH SOME SCREENING OCCURS STATE COURTS TEST INTERPRETERS LESS RIGOROUSLY THAN FEDERAL COURTS AND SOME DON'T TEST AT ALL THIS HAS LED TO MISINTERPRETATIONS SUCH AS THE ONE IN A CALIFORNIA IMMIGRATION CASE DURING WHICH A MAN SAID HE WAS BEATEN WITH A RUBBER HOSE FOR SOME REASON THE INTERPRETER SAID THE MAN WAS BEATEN WITH A TABLECLOTH SAID NIELS FRENZEN DIRECTING ATTORNEY OF THE IMMIGRATION PROJECT OF PUBLIC COUNSEL A NONPROFIT GROUP IN LOS ANGELES IT'S A LACK OF SUFFICIENT FAMILIARITY WITH THE SPANISH LANGUAGE OR THE ENGLISH LANGUAGE ON THE PART OF THE INTERPRETERS MR FRENZEN SAID OTHER TIMES THE INTERPRETERS WHO ARE AVAILABLE SPEAK THE WRONG DIALECT OR LANGUAGE IN ONE CASE NOTED BY AN OREGON STATECOURT TASK FORCE ON BIAS IN THE COURTS A MIXTEC INDIAN FROM SOUTHERN MEXICO WAS PROVIDED WITH A SPANISHLANGUAGE TRANSLATOR DURING HIS MURDER TRIAL MIXTEC HOWEVER IS UNRELATED TO SPANISH THE MAN SERVED FOUR YEARS IN PRISON BEFORE THE CONVICTION WAS REVERSED BECAUSE HE DIDN'T UNDERSTAND THE COURT PROCEEDINGS THE OREGON TASK FORCE HAS PROPOSED TRAINING AND TESTING FOR INTERPRETERS WHEN NEW JERSEY COURTS STARTED TESTING COURT INTERPRETERS IN 1988 ONLY TWO PEOPLE PASSED OUT OF 76 CANDIDATES WHO CONSIDERED THEMSELVES CAPABLE OF COURT WORK OFTEN IN STATE COURTS BILINGUAL PEOPLE WHO HAPPEN TO BE IN THE COURTHOUSE ARE DRAFTED FOR USE AS INTERPRETERS SAID ROBERT W PIATT JR A TEXAS TECH UNIVERSITY LAW PROFESSOR WHO HAS WRITTEN EXTENSIVELY ON THE ISSUE IN SOME COURTS BUDGET CUTS MEAN THAT PROFESSIONAL INTERPRETERS ARE USED INFREQUENTLY BUT BEING BILINGUAL IS NOT THE SAME AS BEING AN INTERPRETER MR PIATT SAID BECAUSE INTERPRETERS KNOW LEGAL TERMINOLOGY AND CAN CAPTURE NUANCES THAT ARE IMPORTANT WHEN A PERSON'S FREEDOM IS AT STAKE ASKING NONPROFESSIONALS TO TRANSLATE LEADS TO OTHER DIFFICULTIES TOO FAMILYCOURT JUDGES FOR INSTANCE HAVE ALLOWED THE HUSBANDS OF BATTERED WOMEN TO TRANSLATE THE WOMEN'S WORDS ADVOCATES FOR BATTERED WOMEN SAY SUCH A PRACTICE IS INHERENTLY UNRELIABLE AND VICTIMIZES THE WOMEN FURTHER SIMILARLY SOME STATE COURTS HAVE ASKED BILINGUAL ATTORNEYS TO TRANSLATE FOR THEIR CLIENTS WHICH POSES ETHICAL QUESTIONS WHEN A CLIENT SAYS SOMETHING THE ATTORNEY BELIEVES IS UNWISE THE US SUPREME COURT HAS NEVER SAID WHEN OR WHETHER A CONSTITUTIONAL RIGHT TO AN INTERPRETER EXISTS MANY LOWER COURTS HAVE HELD HOWEVER THAT SUCH A RIGHT EXISTS IN CRIMINAL TRIALS MOST STATECOURT RULES GRANT EVEN BROADER RIGHTS TO AN INTERPRETER KANSAS FOR INSTANCE REQUIRES THAT INTERPRETERS BE AVAILABLE TO PARTIES AND WITNESSES IN ALL CIVIL AND CRIMINAL COURT PROCEEDINGS THE PRIMARY SUSPECT ARRESTED IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING PROBABLY CAN'T BE SENTENCED TO DEATH IF HE IS CONVICTED DEATH PENALTY SPECIALISTS SAID THE SUSPECT MOHAMMED SALAMEH WAS CHARGED WITH VIOLATING A FEDERAL STATUTE THAT SETS OUT SEVERAL POSSIBLE PUNISHMENTS INCLUDING DEATH FOR ANYONE WHO CAUSES DEATH IN AN EXPLOSION THAT MALICIOUSLY DAMAGES A BUILDING USED IN INTERSTATE OR FOREIGN COMMERCE FIVE PEOPLE DIED IN THE TRADE CENTER BLAST BUT THE STATUTE'S DEATH PENALTY PROVISION MAY BE UNCONSTITUTIONAL SOME LAWYERS SAY AT MR SALAMEH'S ARRAIGNMENT LAST WEEK GILMORE CHILDERS AN ASSISTANT US ATTORNEY PROSECUTING THE CASE SAID HE WAS EXPLORING WHETHER THE DEATH PENALTY PROVISION IS CONSTITUTIONAL SINCE THE STATUTE WAS ENACTED IN 1970 THE US SUPREME COURT HAS STRUCK DOWN DEATH PENALTY LAWS THAT DON'T PROVIDE JUDGES AND JURIES WITH ENOUGH GUIDANCE ABOUT WHEN THE DEATH SENTENCE CAN BE IMPOSED NO GUIDELINES HAVE BEEN ENACTED THAT SUFFICIENTLY CLARIFY THE FEDERAL STATUTE IN MR SALAMEH'S CASE SAID KEVIN MCNALLY A FRANKFORT KY LAWYER WHO SPECIALIZES IN DEATH PENALTY CASES NONETHELESS THE FEDERAL GOVERNMENT MAY STILL BE ABLE TO ISSUE GUIDELINES THAT CLARIFY THE STATUTE EVEN THOUGH THE BOMBING HAS ALREADY TAKEN PLACE SAID LAURENCE TRIBE A PROFESSOR AT HARVARD LAW SCHOOL MR TRIBE CITED A 1977 SUPREME COURT CASE THAT UPHELD THE DEATH SENTENCE FOR A MURDER THAT TOOK PLACE BEFORE THE FLORIDA LEGISLATURE CORRECTED PROBLEMS WITH THE STATE'S DEATH PENALTY LAW JOHN BYRNES A LAWYER WITH THE LEGAL AID SOCIETY OF NEW YORK WHICH HAS BEEN ASSIGNED TO DEFEND MR SALAMEH SAID HE DOESN'T BELIEVE THE DEATH PENALTY WOULD BE CONSTITUTIONAL IN THIS CASE BUT HE SAID THIS IS THE KIND OF CASE THAT BREAKS CURVES LIKE KILLING A PRESIDENT PEOPLE GET VERY INNOVATIVE A STATE COURT JURY HIT THE SAN DIEGO LAW FIRM OF SAMUEL E SPITAL WITH A 25 MILLION MALPRACTICE VERDICT IN AN UNUSUAL CASE INVOLVING LAWYER ADVERTISING PLAINTIFF JERRY MAY AN INJURED FORMER CONSTRUCTION WORKER CLAIMED THAT THE FIRM HAS MISHANDLED HIS LAWSUIT AND HAD ENGAGED IN FRAUD AND FALSE ADVERTISING AT THE HEART OF THE ADVERTISING ARGUMENT WERE CLAIMS THAT MR SPITAL'S ADS MISREPRESENTED HIS TRIAL EXPERIENCE AND HIS AREAS OF EXPERTISE ACCORDING TO PAULA TUPPER OF THE SAN DIEGO LAW FIRM FREGA & TIFFANY WHICH REPRESENTED MR MAY IN THE MALPRACTICE CASE THIS WEEK THE JURY WILL CONSIDER ASSESSING PUNITIVE DAMAGES MR SPITAL ADVERTISED WIDELY IN CALIFORNIA SPENDING BETWEEN 250000 AND 1 MILLION A YEAR ON TELEVISION AND YELLOW PAGES ADS MR SPITAL'S LAWYER SIDNEY STUTZ OF SAN DIEGO SAID THAT AN APPEAL WOULD BE CONSIDERED AND THAT HIS CLIENT'S ADS WERE QUITE LAWFUL AND DID NOT MISREPRESENT THE SERVICES AVAILABLE OR THE QUALITY OF THE FIRM THE FIRM DENIED THE MALPRACTICE CLAIM BEVERLY POHL A FORT LAUDERDALE FLA LAWYER WHO HAS HANDLED CASES INVOLVING LAWYER ADVERTISING SAYS THAT BAR ASSOCIATIONS TYPICALLY MONITOR SUCH ADVERTISING FOR MISREPRESENTATIONS SHE CALLED THE SAN DIEGO VERDICT VERY UNUSUAL EDWARD FELSENTHAL CONTRIBUTED TO THIS COLUMN 9303080102 930308 HONG KONG'S SUBWAY REPORTS A SEXTUPLING OF NET INCOME IN 1992 SPECIAL TO THE WALL STREET JOURNAL HONG KONG THE ORGANIZATION THAT RUNS HONG KONG'S SUBWAY SYSTEM THE MASS TRANSIT RAILWAY CORP SAID FRIDAY THAT NET INCOME SEXTUPLED TO 403 MILLION HONG KONG DOLLARS 521 MILLION LAST YEAR FROM HK67 MILLION A YEAR EARLIER HAMISH MATHERS CHAIRMAN OF THE GOVERNMENTOWNED ENTITY ATTRIBUTED THE PROFIT GROWTH TO OUR OPERATING COSTS BEING CONTAINED AND A LOWER INTEREST RATE ON BORROWING HE ADDED THAT FARE REVENUE GREW BY 12 TO HK339 BILLION RESULTING FROM AN AVERAGE FARE INCREASE OF 78 WHICH WAS BELOW THE 1992 INFLATION RATE OF 94 AND RIDERSHIP GROWTH MTR SAID THE NUMBER OF PASSENGERS SERVED IN 1992 INCREASED A STEADY 34 TO 751 MILLION FROM 726 MILLION A YEAR EARLIER MTR SAID INTEREST AND FINANCE CHARGES WERE REDUCED 99 TO HK131 BILLION FROM HK145 BILLION IN 1991 SHAREHOLDER EQUITY ROSE 15 TO HK793 BILLION FROM HK688 BILLION A YEAR EARLIER WHILE BORROWINGS STAYED NEARLY STEADY AT HK184 BILLION IN 1992 MTR'S DEBTTOEQUITY RATIO WAS REDUCED ON A YEARONYEAR BASIS TO 23 TIMES IN 1992 FROM 27 TIMES IN 1991 MTR ALSO REPORTED A PROFIT OF HK4 MILLION FROM PROPERTY DEVELOPMENT WITH FIXED ASSETS OF HK2547 BILLION DURING 1992 IT ARRANGED NEW FACILITIES COSTING HK48 MILLION THE COMPANY SAID IT HASN'T YET ENTERED INTO A FORMAL AGREEMENT WITH THE HONG KONG GOVERNMENT ON A RAIL LINK TO THE COLONY'S NEW AIRPORT AT CHEK LAP KOK 9303080101 930308 STEWART ENTERPRISES EXPECTS TO POST GAIN FOR FISCAL 1ST QUARTER NEW ORLEANS STEWART ENTERPRISES INC EXPECTS TO REPORT PROFIT FROM CONTINUING OPERATIONS FOR THE FIRST QUARTER ENDED JAN 31 OF BETWEEN 41 MILLION AND 43 MILLION OR 41 CENTS TO 43 CENTS A SHARE COMPARED WITH 36 MILLION OR 37 CENTS A SHARE A YEAR EARLIER RONALD PATRON CHIEF FINANCIAL OFFICER SAID THE OWNER AND OPERATOR OF FUNERAL HOMES AND CEMETERIES EXPECTS TO REPORT THAT REVENUE FOR THE QUARTER ROSE TO BETWEEN 38 MILLION AND 41 MILLION FROM 347 MILLION THE YEAR BEFORE REVENUE ROSE ABOUT 12 AT FACILITIES STEWART HAS OWNED FOR MORE THAN ONE YEAR THE COMPANY SAID AT THE END OF THE QUARTER STEWART OPERATED 50 FUNERAL HOMES AND 44 CEMETERIES COMPARED WITH 48 FUNERAL HOMES AND 35 CEMETERIES A YEAR EARLIER THE COMPANY HAS ACQUIRED THREE FUNERAL HOMES AND THREE CEMETERIES SINCE JAN 31 THE RESULTS DON'T REFLECT THE COMPANY'S RECENT OFFERING OF 25 MILLION COMMON SHARES WHICH WAS COMPLETED AFTER THE END OF THE FIRST QUARTER LAWRENCE BERNER CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT THE COMPANY PLANS TO CONTINUE ITS EXPANSION BOTH INTERNALLY AND EXTERNALLY IN THE COMING MONTHS SINCE THE END OF FISCAL 1991 ENDED OCT 31 1991 THE COMPANY HAS ACQUIRED OR DEFINITIVELY AGREED TO ACQUIRE 30 FUNERAL HOMES AND CEMETERIES IN TRANSACTIONS VALUED AT AN ESTIMATED 53 MILLION I WOULD EXPECT THAT LEVEL OF ACTIVITY TO BE THE SAME OR GREATER IN 1993 MR BERNER SAID 9303080100 930308 STATEOWNED COMPANY FOR FUTURES TRADING IS ESTABLISHED IN CHINA SPECIAL TO THE WALL STREET JOURNAL HONG KONG CHINA'S EMERGING FUTURES MARKET TOOK A STRIDE FORWARD WITH THE ESTABLISHMENT OF THE FIRST STATEOWNED FUTURES TRADING COMPANY WANG XINZHENG EXECUTIVE VICE PRESIDENT OF THE BEIJINGBASED CHINA INTERNATIONAL FUTURES CO SAID THE FIRM WILL AT ITS INITIAL STAGE FOCUS ON DEALING IN COMMODITIES FUTURES INCLUDING NONFERROUS METALS AND FARM PRODUCTS HE SAID THE COMPANY ALSO WILL CONSIDER LAUNCHING AGENCY SERVICES FOR THE COLONY'S BLUECHIP HANG SENG INDEX FUTURES IN CHINA IF SUFFICIENT DEMAND IS FOUND THERE HE ASSERTED THAT MANY MAINLANDBASED FUTURES COMPANIES HAVE BEEN PLANNING TO INTRODUCE INDEXRELATED FUTURES IN THE COUNTRY CHINA INTERNATIONAL FUTURES WAS INCORPORATED UNDER THE AUSPICES OF THE STATE COUNCIL'S MINISTRY OF MATERIALS AND EQUIPMENT AND MINISTRY OF COMMERCE IN LATE DECEMBER FOLLOWING A PROLIFERATION OF SETUPS LAST YEAR CHINA IS REPORTEDLY EMBARKING ON MORE ACTIVE DEVELOPMENT OF THE COUNTRY'S FUTURES TRADING MR WANG SAID NEW OFFICES WILL BE OPENED IN SHENZHEN AND GUANGZHOU IN SOUTHERN CHINA IN ADDITION TO ITS CURRENT OUTLETS IN NANJING AND SHANGHAI 9303080099 930308 BUSINESS BRIEFS CURAFLEX HEALTH SERVICES INC COMPLETED THE ACQUISITION OF CLINICAL HOMECARE LTD FOR STOCK VALUED AT 312 MILLION GENERAL ELECTRIC CO'S APPLIANCE DIVISION AND GODREJ & BOYCE MANUFACTURING CO FORMED A JOINT VENTURE CALLED GODREJGE APPLIANCES LTD TO DEVELOP MANUFACTURE AND MARKET MAJOR APPLIANCES IN INDIA AND OTHER PARTS OF ASIA WESTERN CO OF NORTH AMERICA COMPLETED THE SALE OF AN OFFSHORE DRILLING RIG TO A GROUP OF MEXICAN COMPANIES FOR 175 MILLION FHP INTERNATIONAL CORP'S FHP INC COMPLETED THE ACQUISITION OF GREAT STATES FINANCIAL CORP TERMS WEREN'T DISCLOSED DURAMED PHARMACEUTICALS INC SAID A NEW CYCLOBENZAPRINE DRUG IT WILL DISTRIBUTE WAS APPROVED BY THE FOOD AND DRUG ADMINISTRATION THE DRUG IS A GENERIC SUBSTITUTE FOR FLEXERIL A MUSCLE RELAXANT SOLD BY MERCK & CO 9303080098 930308 BUSINESS BRIEF NISSAN MOTOR CO JAPANESE FIRM SELLS HOLDINGS WITH VALUE OF 386 MILLION NISSAN MOTOR CO JAPAN'S SECOND LARGEST CAR MAKER SAID IT SOLD REAL ESTATE HOLDINGS VALUED AT 4499 BILLION YEN 386 MILLION TO A REAL ESTATE AFFILIATE TO HELP OFFSET LOSSES EXPECTED IN THE CURRENT FISCAL YEAR THE COMPANY WHICH IS STRUGGLING AMID WEAK DEMAND IN THE JAPANESE MARKET WILL POST AN EXTRAORDINARY PROFIT OF 3940 BILLION YEN FROM THE SALE OF EMPLOYEE HOUSING FOR THE YEAR ENDING MARCH 31 THE LAND SALES DON'T ALTER THE COMPANY'S EARNING PROJECTIONS AS THE PROFITS FROM THE SALES WERE PLANNED WHEN NISSAN ISSUED ITS LATEST EARNING FORECASTS ON FEB 23 THAT PROJECTION CALLED FOR A 29 BILLIONYEN UNCONSOLIDATED PRETAX LOSS AND A 20 BILLIONYEN NET LOSS 9303080097 930308 CITIZENS UTILITIES CO WILL ENTER CABLE TV STAMFORD CONN CITIZENS UTILITIES CO SAID IT IS GETTING INTO THE CABLE TELEVISION BUSINESS IN AN AGREEMENT WITH CENTURY COMMUNICATIONS CORP TO JOINTLY BUY SOME CABLE SYSTEMS IN SOUTHERN CALIFORNIA CITIZENS UTILITIES AND CENTURY A CABLETELEVISION AND CELLULARSYSTEMS CONCERN AGREED TO BUY GLENDORA CABLEVISION SERVING GLENDORA CALIF AND SURROUNDING COMMUNITIES FROM FOOTHILLS CABLEVISION LTD A PARTNERSHIP THEY ALSO AGREED TO BUY CHINO VALLEY CABLEVISION IN SAN BERNARDINO COUNTY CALIF FROM AMERICAN CABLE TELEVISION INVESTORS 4 LTD ANOTHER PARTNERSHIP TERMS WEREN'T DISCLOSED THE SYSTEMS SERVE A TOTAL OF ABOUT 45000 CUSTOMERS THE TRANSACTION WAS ONE OF SEVERAL ANNOUNCED LAST WEEK BY A DENVERBASED BROKER OF CABLE SYSTEMS DANIELS & ASSOCIATES FOR SYSTEMS WITH A TOTAL OF ABOUT 175000 CUSTOMERS THE VARIOUS TRANSACTIONS WERE SAID TO BE VALUED AT MORE THAN 300 MILLION CITIZENS UTILITIES A PROVIDER OF ELECTRIC GAS WATER/WASTE WATER AND TELECOMMUNICATIONS UTILITY SERVICES IN 13 STATES MERGED ITS CELLULAR TELEPHONE OPERATIONS WITH CENTURY'S IN 1991 THE MERGED OPERATIONS BECAME A PUBLICLY TRADED COMPANY CENTENNIAL CELLULAR CORP CENTURY BASED IN NEW CANAAN CONN OPERATES 55 CABLE SYSTEMS IN 24 STATES WITH 917000 SUBSCRIBERS AND OWNS FOUR RADIO STATIONS CENTENNIAL CELLULAR OWNS AND OPERATES CELLULAR SYSTEMS IN MARKETS WITH A TOTAL OF 32 MILLION POTENTIAL CUSTOMERS AND HAS CELLULAR INTERESTS IN OTHER MARKETS WITH A TOTAL OF ONE MILLION POTENTIAL CUSTOMERS 9303080096 930308 MARKETING & MEDIA MUSIC RETAILERS PICK ANTITHEFT SYSTEM FROM SENSORMATIC FOR NEW CD PACKAGES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA ENDING A BITTER FIGHT BETWEEN MAKERS OF ELECTRONIC ANTITHEFT DEVICES MUSIC RETAILERS HERE HAVE CHOSEN THE SYSTEM MANUFACTURED BY SENSORMATIC ELECTRONICS CORP THE BOARD OF THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS CHOSE THE DEERFIELD BEACH FLA COMPANY'S SYSTEM WHICH IS EXPECTED TO BE USED WIDELY BY MUSIC RETAILERS AS THE MUSIC INDUSTRY BEGINS TO PHASE OUT ITS USE OF THE 6BY12 INCH LONG BOX PACKAGING THAT ENCASES MOST COMPACT DISKS NARM ANNOUNCED THE DECISION AT ITS ANNUAL MEETING HERE THE RECORDING INDUSTRY DECIDED TO ELIMINATE THE LONG BOX FOR ENVIRONMENTAL REASONS AND PLANS BY APRIL 1 TO BEGIN SHIPPING ALL NEW RELEASES ON CD IN THE SIMPLE PLASTIC JEWEL BOXES THAT STORE THEM BUT CDS SOLD IN THE SMALLER MORE CONCEALABLE CD JEWEL BOXES ARE FAR EASIER TO STEAL SO RETAILERS HAVE SCRAMBLED TO FIND A SYSTEM THAT WOULD INSERT ELECTRONIC TAGS AT THE MANUFACTURING STAGE THAT COULD BE READ BY INSTORE ELECTRONIC SECURITY SYSTEMS THE SENSORMATIC SYSTEM USES ACOUSTOMAGNETIC TECHNOLOGY IN WHICH METAL IN THE TAG VIBRATES AND SETS OFF THE ALARM SYSTEM AT THE STORE EXIT UNLESS THE TAG IS DEACTIVATED NARM RECOMMENDED THAT THE SENSORMATIC SYSTEM ALSO BE USED FOR OTHER PRERECORDED CONFIGURATIONS SUCH AS LASER DISKS VIDEOTAPE AND CERTAIN FORMS OF AUDIO CASSETTE TAPE REPRESENTATIVES OF THE SIX MAJOR MUSIC DISTRIBUTION COMPANIES ASSEMBLED HERE GAVE VERBAL COMMITMENTS TO BEGIN WORKING ON IMPLEMENTING THE TAGGING SYSTEM SENSORMATIC WHICH SUPPLIES ITS EQUIPMENT TO DEPARTMENT AND GROCERY STORES IS THE MAJORITY PLAYER IN THE GROWING MARKET FOR DISPOSABLE DETECTION EQUIPMENT WHICH ANALYSTS PREDICT COULD REACH 1 BILLION BY THE END OF THE DECADE SENSORMATIC REPORTED NET INCOME OF 315 MILLION ON REVENUE OF 3098 MILLION IN ITS FISCAL YEAR ENDED LAST JUNE CHRIS BROWN SENSORMATIC'S MARKET DEVELOPMENT MANAGER SAID THE DECISION MEANS THE COMPANY WILL TAKE IN ADDITIONAL REVENUE OF AS MUCH AS 25 MILLION IN EARLY STAGES FOR HARDWARE INSTALLATION AND AS MUCH AS 15 MILLION IN ANNUAL REVENUE WHEN THE SYSTEM IS FULLY IMPLEMENTED THERE ARE MORE THAN 14000 MUSIC STORES IN THE US AND MORE THAN 850 MILLION CASSETTES AND CDS ARE EXPECTED TO BE SOLD IN 1993 THE COMPANY SAID IN A STATEMENT THAT FULL IMPLEMENTATION OF SOURCE LABELING PROGRAMS CAN BE COMPLETED WITHIN THE NEXT 12 TO 18 MONTHS A NARM SPOKESMAN SAID SENSORMATIC IS EXPECTED TO CROSSLICENSE ITS TECHNOLOGY TO OTHER ELECTRONICSECURITY COMPANIES SENSORMATIC SHARES WERE ACTIVE LAST WEEK IN ANTICIPATION OF THE NARM DECISION SETTING A 52WEEK HIGH OF 3750 AND CLOSING FRIDAY AT 35625 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE TRADING THE MUSIC RETAILING GROUP WHICH REPRESENTS 900 RETAILING COMPANIES HAD BEEN RIGOROUSLY TESTING VARIOUS TAGGING SYSTEMS FOR FIVE MONTHS INCLUDING ONE FROM CHECKPOINT SYSTEMS INC THOROFARE NJ IN JANUARY SENSORMATIC FILED A 35 MILLION LAWSUIT AGAINST CHECKPOINT CHARGING IT HAD USED FALSE AND MISLEADING ADVERTISING TO DISPARAGE THE SENSORMATIC SYSTEM THE SUIT FILED IN US DISTRICT COURT IN MIAMI WAS IN RESPONSE TO AN AD CHECKPOINT PLACED IN THE JAN 9 ISSUE OF BILLBOARD MAGAZINE THAT CLAIMED SENSORMATIC'S TAGS CAN DISTORT TAPE RECORDINGS WHEN DEACTIVATED WHILE CHECKPOINT CITED STUDIES BACKING ITS CLAIMS SENSORMATIC QUESTIONED THE VALIDITY OF THE STUDIES AND DENIED THE CLAIMS AT THE TIME CHECKPOINT EXECUTIVES SAID THEY WOULD STAND BY THE ADVERTISEMENT IN FEBRUARY CHECKPOINT SHARES BACKPEDALED AS RUMORS CIRCULATED ABOUT WHICH ANTITHEFT SYSTEM WOULD BE CHOSEN BY THE RETAILERS CHECKPOINT SAID AN ARTICLE IN FORBES WHICH HAD SUGGESTED THE CHECKPOINT SYSTEM WAS NOTORIOUS FOR SETTING OFF FALSE ALARMS HAD HURT THE COMPANY'S SHARES CHECKPOINT DISPUTED THE ARTICLE'S CONTENTION THEN CAME INDUSTRY SPECULATION THAT A NARM SUBCOMMITTEE WAS LEANING TOWARD PICKING THE SENSORMATIC SYSTEM CHECKPOINT EXECUTIVES COULD NOT BE REACHED TO COMMENT HERE BUT NEIL D AUSTIN A VICE PRESIDENT AND GENERAL COUNSEL FOR CHECKPOINT SAID LAST WEEK THAT THE COMPANY WAS CONFIDENT THE TESTING OF THE SYSTEMS WOULD BE FAIR HE ADDED WE ARE IN THIS BUSINESS TO STAY WE CAN'T BE SELECTED BY EVERY CUSTOMER HE SAID CHECKPOINT'S 1993 RESULTS WOULDN'T BE AFFECTED BY NARM'S DECISION OTHER CONTENDERS INCLUDED KNOGO CORP AND MINNESOTA MINING & MANUFACTURING CO 9303080095 930308 MANY TRADE CENTER TENANTS MAY SEEK TO LEAVE BUT LEASES SET TOUGH TERMS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MANY TENANTS OF THE WORLD TRADE CENTER'S TWIN TOWERS WILL TRY TO BREAK THEIR LEASES IF THE TOWERS AREN'T REOPENED BY THE END OF APRIL ACCORDING TO REALESTATE BROKERS AND LAWYERS WHO HAVE BEEN CONTACTED BY NUMEROUS TENANTS BECAUSE MOST OF THE BUILDINGS' LEASES ARE UNUSUALLY TOUGH ON TENANTS WOULDBE DEFECTORS COULD HAVE A DIFFICULT FIGHT THEY SAY BUT EVEN IF NO TENANTS CAN BREAK THEIR LEASES THE PORT AUTHORITY STILL COULD FACE ESCALATING VACANCIES IF IT IS UNABLE TO RESTORE THE CONFIDENCE OF THOSE WHOSE LEASES ARE EXPIRING OVER THE NEXT FEW YEARS SAY THE BROKERS OFFICIALS FROM THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OWNS THE COMPLEX HAVE SAID THE TWIN TOWERS WILL REOPEN NEXT MONTH BUT MANY BROKERS AND TENANTS ARE SKEPTICAL THE TOWERS HAVE BEEN CLOSED SINCE THE MASSIVE BOMB BLAST ON FEB 26 PORT AUTHORITY OFFICIALS SAY THAT SMOKE DETECTORS FIRE ALARMS AND AN EMERGENCY POWER GENERATOR HAVE ALREADY BEEN RESTORED MANY TENANTS INCLUDING THOSE WHO WOULD LIKE TO LOWER THEIR RENT COSTS BY MOVING TO LESS EXPENSIVE SPACE ARE ALREADY INVESTIGATING THEIR OPTIONS SIXTEEN PEOPLE HAVE CALLED ABOUT TRYING TO GET OUT OF THEIR LEASES SAID NEW YORK LAWYER JOHN WOODS WHO HAS WRITTEN EXTENSIVELY ON LEASING LAW IF THE WHOLE THING TAKES ABOUT A MONTH AS THE PORT AUTHORITY THINKS VERY FEW TENANTS ARE GOING TO HAVE RECOURSE SAID KENNETH RAPP ASSOCIATE DIRECTOR IN THE NEW YORK OFFICE OF CB COMMERCIAL A NATIONAL BROKERAGE FIRM IF IT TAKES LONGER THAN TWO MONTHS THERE ARE GOING TO BE LAWYERS INVOLVED AND IT'S A WHOLE DIFFERENT BALL GAME SHEARSON LEHMAN BROTHERS INC HAS ALREADY TOLD PEOPLE IN THE BROKERAGE INDUSTRY THAT IT DOESN'T INTEND TO RETURN TO THE BUILDING ACCORDING TO ONE INDIVIDUAL WHO SPOKE WITH A SHEARSONALESTATE EXECUTIVE THEY'RE BIG ENOUGH TO BE ABLE TO FIGHT WITH THE PORT AUTHORITY HE SAID BEFORE THE BLAST THE AMERICAN EXPRESS CO UNIT HAD ONLY ABOUT 150 EMPLOYEES ON THE SEVEN FULL FLOORS IT LEASES ITS 280000 SQUARE FEET ARE EITHER SUBLET TO OTHER COMPANIES OR CURRENTLY AVAILABLE FOR SUBLET A SPOKESMAN FOR SHEARSON SAID THE COMPANY HAS NOT MADE A DECISION ABOUT WHETHER TO MOVE BACK INTO THE WORLD TRADE CENTER IT IS UNCLEAR WHAT RIGHTS THE COMPANY HAS UNDER ITS LEASE WHICH EXPIRES IN 2002 OTHER TENANTS REACHED FRIDAY DECLINED TO DISCUSS THEIR LONGTERM PLANS I THINK THERE WILL BE ISSUES AS TO WHETHER YOU HAVE TO STAY THERE SAID MITCHELL FENTON A REALESTATE LAWYER AT BROWN & WOOD WHICH OCCUPIED THREE FLOORS IN ONE TOWER WHILE DECLINING TO DISCUSS HIS OWN FIRM'S INTENTIONS HE NOTED I THINK THAT PEOPLE WILL TRY TO GET OUT OF THEIR LEASES BROKERS AND LAWYERS SAY TENANTS MAY BE MOTIVATED BY MORE THAN SAFETY CONCERNS MANY WHO SIGNED LEASES DURING THE BOOM MARKET OF THE 1980S ARE PAYING UPWARDS OF 40 A SQUARE FOOT WHILE COMPARABLE SPACE CAN NOW BE HAD FOR AS LITTLE AS 30 A SQUARE FOOT THE TENANTS I'VE SPOKEN TO WHO WANT TO LEAVE ARE PEOPLE WHO HAVE ALREADY CONSIDERED RELOCATING TO MIDTOWN OR TENANTS WHO ARE ALREADY TRYING TO DISPOSE OF SPACE IN THE TRADE CENTER SAID MR RAPP THOSE ARE THE TENANTS WHO SEE THIS AS AN OPPORTUNITY TO RELOCATE OUT OF A HIGHRENT AREA BUT AFTER REVIEWING SOME LEASES SIGNED IN THE 1980S MARTIN SAIMAN A LAWYER AT NEW YORK'S KAYE SCHOLER FIERMAN HAYS & HANDLER SAID ESCAPE COULD BE TOUGH MANY OF THE LEASES PROVIDE THAT AS LONG AS THE PORT AUTHORITY IS WILLING TO RESTORE THE PREMISES AND IS PROCEEDING TO DO THE WORK WITH DUE DILIGENCE THE TENANTS CANNOT CANCEL REGARDLESS OF HOW LONG THE RESTORATION TAKES HE SAID PROVISIONS LIKE THAT HAVE BEEN HELD TO BE ENFORCEABLE I PREDICT THE PORT AUTHORITY WILL FIGHT THEM TOOTH AND NAIL THE PORT AUTHORITY DOESN'T DISCLOSE LEASEEXPIRATION INFORMATION FOR THE TRADE CENTER WHERE THE CURRENT VACANCY RATE OF THE TWIN TOWERS STANDS AT ABOUT 12 BUT MORE THAN ONEQUARTER OF THE TENANTS ON A PARTIAL LISTING OF LEASE EXPIRATIONS PREPARED BY NEW YORK'S REALTY INFORMATION TRACKING SERVICES WILL SEE THEIR LEASES EXPIRE BY 1995 DELOITTE & TOUCHE'S LEASE ON ABOUT 280000 SQUARE FEET FOR EXAMPLE WILL EXPIRE NEXT FEBRUARY BROKERS SAY THAT IF THE PORT AUTHORITY HOPES TO RETAIN THESE TENANTS IT MUST CONVINCE THEM THAT IT HAS SUBSTANTIALLY IMPROVED EMERGENCY SYSTEMS REAL ESTATE LAWYERS SAY SOME TENANTS PARTICULARLY LARGE ONES HAVE NEGOTIATED MORE FAVORABLE TERMS WHICH MAY ALLOW THEM TO BREAK THEIR LEASES IF THE PREMISES AREN'T READY WITHIN SEVERAL MONTHS ACCORDING TO RATINGS AGENCY STANDARD & POORS WHICH ON FRIDAY AFFIRMED THE PORT AUTHORITY'S DOUBLEAMINUS RATING THE WORLD TRADE CENTER WILL LOSE 20 MILLION A MONTH IN RENT WHILE THE TOWERS ARE CLOSED BUT THE BREADTH OF THE PORT AUTHORITY'S OPERATIONS WILL LIKELY CUSHION THE BLOW OF LOST INCOME FROM THE BOMBING NEW YORK GOV MARIO CUOMO WHO ESTIMATED COSTS RELATED TO THE BOMBING WILL TOP 700 MILLION CALLED ON THE FEDERAL GOVERNMENT TO EXTEND FURTHER DISASTER RELIEF TO EMPLOYEES OF BUSINESSES AFFECTED BY THE EXPLOSION DAVE KANSAS CONTRIBUTED TO THIS ARTICLE 9303080094 930308 INTERNATIONAL BRIEF NEWS CORP MEDIA GROUP UNIT RAISES 507 MILLION IN NOTE ISSUE NEWS CORP SAID ITS NEWS AMERICA HOLDINGS LTD SUBSIDIARY RAISED ABOUT 507 MILLION BY ISSUING ZEROCOUPON LIQUID YIELD OPTION NOTES DUE 2013 THE NOTES ARE GUARANTEED BY NEWS CORP AND WILL CONSTITUTE SENIOR DEBT OF NEWS AMERICA AND NEWS CORP PROCEEDS WILL BE USED TO REPAY BANK DEBT NEWS CORP RUPERT MURDOCH'S INTERNATIONAL MEDIA COMPANY SAID IN A STATEMENT THAT THE NOTES WERE INITIALLY PRICED AT 33785 FOR EACH 1000 FACE VALUE WITH A YIELD AT MATURITY OF 5 1/2 THE NOTES ARE EXCHANGEABLE FOR NEWS CORP SHARES OR AMERICAN DEPOSITARY SHARES AT A PRICE OF 4750 FOR EACH ADR THAT IS AN 18 PREMIUM OVER THE PRICE AT THE TIME OF SALE THE HOLDER OF THE NOTES MAY REQUIRE NEWS CORP TO BUY THE NOTES BACK IN MARCH 1998 MARCH 2003 AND MARCH 2008 NEWS CORP CAN ELECT WHETHER TO PAY CASH ADRS OR COMMON SHARES OR A COMBINATION 9303080093 930308 BOMB INQUIRY FOCUSES ON LINKS TO MUSLIM CLERIC SUSPECT'S ASSOCIATES SOUGHT SECOND MAN ARRESTED WAS CLOSE TO SHEIK A WALL STREET JOURNAL NEWS ROUNDUP WITH THE MOTIVE FOR THE WORLD TRADE CENTER BOMBING STILL ELUSIVE A LINK HAS EMERGED BETWEEN EGYPTIANBORN IBRAHIM ELGABROWNY WHO WAS ARRESTED LAST WEEK IN BROOKLYN AND THE BLIND CLERIC WHO HAS PREACHED JIHAD OR ISLAMIC HOLY WAR IN NEW YORKAREA MOSQUES ALSO CRUCIAL TO THE INVESTIGATION AUTHORITIES SAY IS A POSSIBLE LINK BETWEEN 25YEAROLD MOHAMMED SALAMEH WHO WAS ARRESTED AS WELL ON THURSDAY AND THE CLERIC SHEIK OMAR ABDELRAHMAN WHILE A FEDERAL BUREAU OF INVESTIGATION EXPERT ON TERRORISM CAUTIONED AGAINST DRAWING TOO STRONG A LINK BETWEEN MR SALAMEH AND SHEIK OMAR AT THIS POINT LAW ENFORCEMENT OFFICIALS OVER THE WEEKEND INTENSIFIED THEIR SEARCH FOR COHORTS OF MR SALAMEH WHO HAS BEEN DESCRIBED BY JORDAN'S GOVERNMENT AS A JORDANIAN CITIZEN OF PALESTINIAN ORIGIN WE'RE LOOKING TO SEE IF OTHER INDIVIDUALS ARE INVOLVED THE OFFICIAL SAID INVESTIGATORS WANT TO TALK WITH ASSOCIATES OF MR SALAMEH WHO AREN'T NECESSARILY SUSPECTS THE AGENT SAID SOME OF THOSE HAVEN'T BEEN TALKED TO YET BUT CONTRARY TO SOME REPORTS THERE IS NO REASON TO BELIEVE THEY HAVE FLED THE COUNTRY HE ADDED MR SALAMEH REMAINS JAILED WITHOUT BAIL ON CHARGES OF AIDING AND ABETTING THE FEB 26 BOMBING WHILE INVESTIGATORS HAVE BEEN FOCUSING ON THE EL SALAM MOSQUE IN JERSEY CITY NJ WHERE MR SALAMEH SOMETIMES PRAYED AND WHERE SHEIK OMAR USED TO PREACH EVIDENCE TYING THE TWO MEN REMAINS TENUOUS AT BEST IN BROOKLYN HOWEVER MR ELGABROWNY THE MAN BEING HELD WITHOUT BAIL ON CHARGES OF OBSTRUCTING FEDERAL AGENTS WHO RAIDED HIS APARTMENT THURSDAY IS AMONG THE SHEIK'S CLOSEST ASSOCIATES IN THE US MR ELGABROWNY A COUSIN OF EL SAYYID NOSAIR THE MAN SENTENCED TO SEVEN TO 23 YEARS IN PRISON FOR CRIMES RELATED TO THE MURDER OF RADICAL RABBI MEIR KAHANE HASN'T BEEN CHARGED WITH ANY BOMBINGRELATED OFFENSES BUT INVESTIGATORS SAY MR SALAMEH USED MR ELGABROWNY'S ADDRESS ON HIS DRIVER'S LICENSE APPLICATION LEADING TO THURSDAY'S BROOKLYN RAID IN WHICH AGENTS TURNED UP SEVERAL FAKE PASSPORTS IN DECEMBER WHEN A WALL STREET JOURNAL REPORTER VISITED BROOKLYN'S ABU BAKR MOSQUE SEEKING AN INTERVIEW WITH THE 54YEAROLD SHEIK OMAR A NUMBER OF WORSHIPERS DIRECTED HIM TO MR ELGABROWNY THE MOSQUE'S PRESIDENT ABU BAKR IS THE ONLY MOSQUE IN THE NEW YORK AREA THAT ALLOWS SHEIK OMAR TO PREACH ON A REGULAR BASIS THANKS TO MR ELGABROWNY AND HIS ASSOCIATES EVERY SUNDAY NIGHT TWO OR THREE FOLLOWERS MAKE THE 40MINUTE DRIVE WITH THE SHEIK TO ABU BAKR FROM HIS APARTMENT IN JERSEY CITY WHICH AS IT HAPPENS IS A FEW BLOCKS FROM WHERE MR SALAMEH WAS LIVING WHEN HE WAS ARRESTED THE SERVICES ARE ATTENDED BY 20 TO 80 PEOPLE A WEEK THE SCHEDULE WAS SUDDENLY REARRANGED TWO WEEKS AGO ON THE EVENING BEFORE THE TRADE CENTER BOMBING SHEIK OMAR MADE AN UNANNOUNCED THURSDAYNIGHT APPEARANCE AT ABU BAKR WORSHIPPERS WERE TOLD THAT THE SHEIK WAS LEAVING NEW YORK FOR A TRIP WEST ONE RECALLS AND WOULDN'T BE IN BROOKLYN ON SUNDAY YESTERDAY MOHAMMED MEHDI PRESIDENT OF THE NATIONAL COUNCIL ON ISLAMIC AFFAIRS AND A SUPPORTER OF SHEIK OMAR ON FREESPEECH GROUNDS SAID THE SHEIK IS IN SECLUSION IN DETROIT ACCORDING TO MR MEHDI WHO SAID HE SPOKE TO SHEIK OMAR FRIDAY THE SHEIK DENOUNCED THE TRADE CENTER BOMBING AS AGAINST ISLAM THE FBI AGENT SAID HE KNOWS SHEIK OMAR'S WHEREABOUTS ADDING HE IS A FAIRLY PUBLIC PERSON WHO SPOKE RECENTLY IN CHICAGO AND DETROIT THE SHEIK FOUGHT GOVERNMENT ATTEMPTS TO DEPORT HIM AT A JAN 20 HEARING NO DECISION ON THE GOVERNMENT'S EXCLUSION EFFORT HAS BEEN MADE EVEN IF MR SALAMEH IS A FOLLOWER OF SHEIK OMAR THAT DOESN'T AUTOMATICALLY INDICATE MR SALAMEH TOOK THE SHEIK'S DIRECTION IN MR SALAMEH'S ALLEGED INVOLVEMENT IN THE BOMBING OF THE TRADE CENTER THE FBI AGENT SAID MICHAEL WARREN MR ELGABROWNY'S ATTORNEY SAID YESTERDAY THAT HIS CLIENT'S ASSOCIATION WITH SHEIK OMAR IS IRRELEVANT TO THE TRADE CENTER BOMBING IN WHICH FIVE PEOPLE WERE KILLED AND MORE THAN 1000 INJURED MR ELGABROWNY IS BEING MADE A SCAPEGOAT MR WARREN SAID FOR THE REAL PERPETRATORS OF THE CRIME THE LARGER ISSUE INVOLVES WHO WOULD HAVE HAD HIGHSECURITY CLEARANCE TO GET INTO AN AREA OF THE WORLD TRADE CENTER TO PLACE A BOMB SO CLOSE TO THE PRESIDENTIAL LIMOUSINE MR WARREN SAID INVESTIGATORS DON'T THINK IT'S LIKELY MR SALAMEH MANAGED THE WORLD TRADE CENTER BOMBING ALONE BUT THEY HESITATE TO SPECULATE ON EVEN THE TYPE OF GROUP WITH WHICH HE MAY HAVE ASSOCIATED YOU HAVE TO ASSUME THIS WOULD NOT BE THE TYPE OF OPERATION SOMEONE COULD DO TOTALLY BY THEMSELVES THE FBI OFFICIAL SAID THE FBI OFFICIAL SAID AGENTS MUST DEVELOP MORE FACTS BEFORE THEY DETERMINE IF THE GROUP WAS AN AD HOC ONE OR A MORE HIGHLY DEVELOPED ORGANIZATION TERRORISM ANALYSTS MEANWHILE WERE STRUCK BY THE WAY THE BOMB PLOT WAS CARRIED OUT THE CONCEPTION OF THE OPERATION THE TARGETING OF THE TRADE CENTER THE USE OF A VAN TO BRING IN A BOMB AND THOUGH FORENSIC WORK ISN'T COMPLETED THE DEVASTATING EFFECT OF THE BOMB ITSELF ALL SUGGEST HIGHLY PROFESSIONAL PLANNING BUT THE GETAWAY PLANS FOR MR SALAMEH WERE SLIPSHOD THEY ADDED ANOTHER PERSON FAMILIAR WITH THE INVESTIGATION SUGGESTS MR SALAMEH WASN'T SUPPOSED TO GET AWAY INSTEAD HE MAY HAVE BEEN DUPED INTO DRIVING THE VAN TO THE TRADE CENTER IN THE BELIEF HE WOULD ESCAPE WHILE THE OTHER TERRORISTS INTENDED THAT HE WOULD BE BLOWN UP IT MAY HAVE BEEN THAT SOME FLUKE A MALFUNCTION IN THE TIMER OR A PREMATURE DEPARTURE BY MR SALAMEH ALLOWED HIM TO ESCAPE OVER THE WEEKEND AUTHORITIES UNCOVERED A STORAGE LOCKER IN JERSEY CITY CONTAINING BOMB PARTS AND POTENTIAL INGREDIENTS FOR EXPLOSIVES THAT REPORTEDLY WAS RENTED BY MR SALAMEH THE MATERIALS SULFURIC URIC AND NITRIC ACIDS WERE ANALYZED AND THEN DESTROYED ALSO THE FBI ARRESTED FRIDAY THREE PEOPLE OUTSIDE A BROOKLYN MOSQUE AFTER THEY STOLE A CAR IN BOSTON AND DROVE SOUTH THE THREE TAKEN INTO CUSTODY ON SUSPICION OF A CONNECTION WITH THE BOMBING WERE LATER RELEASED 9303080092 930308 RABOBANK REPORTS SLIGHT 08 CLIMB IN PROFIT FOR 1992 SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM RABOBANK NEDERLAND SAID DOWNWARD PRESSURE ON MARGINS STUNTED ANNUAL GROWTH IN NET PROFIT LAST YEAR TO JUST 08 BUT THE BIG DUTCH COOPERATIVE BANKING GROUP'S UNDERLYING BUSINESS WAS BUOYANT WITH TOTAL REVENUE FROM ALL BUSINESS LINES UP 75 FROM A YEAR EARLIER THE BANK SAID ITS OPERATING COSTS INCREASED AT A PACE THAT OUTSTRIPPED ITS REVENUE GROWTH SHRINKING MARGINS AND HOLDING DOWN PROFITS INDEED TOTAL REVENUE THAT INCLUDES INTEREST AND COMMISSION INCOME AS WELL AS INCOME FROM OTHER BANKING LINES ROSE TO 706 BILLION GUILDERS 383 BILLION IN 1992 FROM THE 667 BILLION GUILDERS POSTED FOR THE PREVIOUS YEAR BUT TOTAL OPERATING COSTS ROSE TO 475 BILLION GUILDERS IN 1992 FROM 1991'S TOTAL OF 439 BILLION GUILDERS THE PERSISTENT INVERTED INTERESTRATE STRUCTURE AND THE SHARPER COMPETITION MADE THE ACQUISITION COSTS FOR SAVINGS WHICH ARE THE FEEDSTOCKS FOR LENDING AGAIN HIGHER THE UTRECHTBASED COMPANY SAID INDEED BANKS THROUGHOUT EUROPE ARE STRUGGLING WITH SHORTTERM INTEREST RATES AT WHICH THEY BORROW THAT ARE HIGHER THAN THE LONGERTERM RATES AT WHICH THEY LEND RABOBANK'S 1992 NET PROFIT WAS ALSO DAMPED BY A 64 MILLION GUILDER 347 MILLION OR 13 RISE IN THE TAX BILL TO 560 MILLION GUILDERS AND BY A 50 MILLION GUILDER OR 75 INCREASE IN ALLOCATIONS TO BAD LOAN RESERVES TO 720 MILLION GUILDERS CONSEQUENTLY THE BANK'S NET PROFIT EDGED UP TO 102 BILLION GUILDERS LAST YEAR FROM 101 BILLION GUILDERS IN 1991 RABOBANK SPECIALIZES IN AGRICULTURAL LOANS HOME MORTGAGES AND OTHER RETAIL BANKING SERVICES AS WELL AS SERVICES FOR SMALL AND MEDIUMSIZED COMPANIES RABOBANK IS THE FIRST OF THE MAJOR DUTCH BANKS TO REPORT 1992 EARNINGS ITS PRESSURED MARGINS AND ONLY MODERATE EARNINGS GROWTH MIGHT INDICATE THE TREND FOR THE INDUSTRY INDEED THE COMPANY'S LARGEST BANKING GROUP ABN AMRO HOLDING NV HAD WARNED LAST SUMMER THAT IT EXPECTED EARNINGS PRESSURE IN THE SECOND HALF DESPITE BUOYANT UNDERLYING BUSINESS TRENDS THE OTHER BANKS WILL BE REPORTING THEIR 1992 EARNINGS DATA THROUGHOUT MARCH CONSIDERING THE GENERAL MARKET PRESSURES THAT DRAGGED DOWN EARNINGS GROWTH RABOBANK SAID IT WAS SATISFIED WITH ITS 1992 FINANCIAL PERFORMANCE INDEED ITS LENDING BUSINESS WAS LIVELY AS THE BANK'S TOTAL VOLUME OF LOANS TO THE PRIVATE SECTOR ROSE 7 TO 1473 BILLION GUILDERS IN 1992 FROM THE YEAREARLIER 1377 BILLION GUILDERS THE BANK SAID ITS AGRICULTURAL FINANCIAL SERVICES ACTIVITIES RECOVERED IN 1992 DESPITE CONTINUED UNCERTAINTIES OVER ENVIRONMENTAL LEGISLATION EUROPEAN COMMUNITY FARM POLICY AND THE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE TOTAL LOANS OUTSTANDING TO THE FARM SECTOR BY THE YEAR END ROSE 57 LAST YEAR TO 333 BILLION GUILDERS FROM 315 BILLION GUILDERS AFTER RISING JUST 16 IN 1991 THE BANK'S INTEREST INCOME ROSE 9 TO 567 BILLION GUILDERS FROM 521 BILLION GUILDERS AND COMMISSION INCOME GAINED 95 TO 900 MILLION GUILDERS FROM 822 MILLION GUILDERS BUT ON THE COST SIDE THE BANK'S OUTLAY ON SALARIES PENSIONS AND SOCIAL SECURITY CONTRIBUTIONS WAS UP 9 LAST YEAR TO 303 BILLION GUILDERS FROM 278 BILLION GUILDERS OTHER COSTS ROSE 12 MILLION GUILDERS OR 10 TO 132 BILLION GUILDERS RABOBANK ADDED THAT ITS TOTAL ASSETS HAD GROWN ABOUT 7 BY THE END OF LAST YEAR TO 2327 BILLION GUILDERS FROM 21705 BILLION GUILDERS 12 MONTHS EARLIER THE BULK OF THAT RISE WAS BECAUSE OF HIGHER LENDING VOLUMES AND A JUMP IN THE COMPANY SECURITIES AND SYNDICATION BUSINESS 9303080091 930308 BUSINESS BRIEF DIVERSIFIED INDUSTRIES INC COMPANY FILES A PETITION FOR CHAPTER 11 PROCEEDINGS DIVERSIFIED INDUSTRIES INC ST LOUIS SAID IT FILED A VOLUNTARY PETITION FOR REORGANIZATION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN THE US BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI DIVERSIFIED SAID THE FILING INDICATES THE COMPANY HAS ABOUT 21 MILLION OF ASSETS AND 26 MILLION OF DEBT THE FILING INCLUDES ITS PLUME & ATWOOD BRASS MILL DIVISION IN THOMASTON CONN WHICH MAKES BRASS STRIP BUT DOESN'T INCLUDE UNITED REFINING & SMELTING CO A CHICAGOBASED SECONDARY REFINER OF PRECIOUS METALS THE UNITED DIVISION WILL BE THE FOCUS OF ITS REORGANIZATION PLAN THE COMPANY SAID THE FILING ALSO DOESN'T AFFECT ITS DIVERSIFIED METALS CORP SUBSIDIARY WHICH IS BEING LIQUIDATED DIVERSIFIED SAID ITS PRINCIPAL LENDER FIRST NATIONAL BANK OF CHICAGO HAS AGREED TO PROVIDE FUNDING FOR THE COMPANY ON AN INTERIM BASIS WHILE IT CONTINUES NEGOTIATIONS TO SELL ITS PLUME & ATWOOD DIVISION TO AN EMPLOYEELED INVESTOR GROUP 9303080090 930308 BUSINESS BRIEF BANQUE NATIONALE DE PARIS LAST YEAR'S PROFIT DROPPED FROM 1991 BANK ESTIMATES BANQUE NATIONALE DE PARIS FRANCE'S BIGGEST STATEOWNED RETAIL BANK SAID IT EXPECTS TO REPORT A 1992 PROFIT OF ABOUT 21 BILLION FRANCS 3773 MILLION DOWN FROM 29 BILLION FRANCS IN 1991 BNP SAID IN PARIS THAT ITS BANKING PROFIT ROSE 52 TO NEARLY 40 BILLION FRANCS WHILE GENERAL OPERATING EXPENSES INCREASED ONLY 37 OPERATING PROFIT ROSE 89 TO 118 BILLION FRANCS BNP COMMENTED THAT THE DECLINE IN LAST YEAR'S PROFIT REFLECTS INCREASED PROVISIONS NOTABLY AGAINST BAD REALESTATE RISKS AS WELL AS A FALL IN THE CONTRIBUTION TO EARNINGS FROM COMPANIES IN WHICH BNP HAS SHAREHOLDINGS DEFINITIVE 1992 EARNINGS FIGURES WILL BE RELEASED AT THE END OF MARCH BNP SAID BNP DIDN'T GIVE A FIGURE FOR THE AMOUNT OF NEW PROVISIONS IT SET ASIDE LAST YEAR IN THE FIRST HALF OF 1992 HOWEVER THE BANK RAISED ITS PROVISIONS 14 TO 41 BILLION FRANCS 9303080089 930308 MARKETING & MEDIA STADIUM FIGHT COULD SET BACK OLYMPIC PLANS BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA A BATTLE BETWEEN GOVERNMENT OFFICIALS HERE AND TURNER BROADCASTING SYSTEM INC COULD TRANSLATE INTO A MAJOR SETBACK FOR ORGANIZERS OF THE CITY'S 1996 SUMMER OLYMPICS AT STAKE IS THE CROWN JEWEL OF THE GAMES THE 207 MILLION OLYMPIC STADIUM THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES HAS LONG PLANNED TO BUILD THE FACILITY NEXT TO THE HOME OF TURNER'S ATLANTA BRAVES BASEBALL TEAM UNDER AN AGREEMENT PAINSTAKINGLY PIECED TOGETHER AMONG FIVE PARTIES DURING THE PAST 18 MONTHS THE BRAVES AFTER THE SUMMER GAMES WOULD MOVE INTO A MODIFIED VERSION OF THE OLYMPIC STADIUM AND THE TEAM'S EXISTING PARK WOULD BE TORN DOWN LAST WEEK HOWEVER WITH APPROVAL BY COUNTY COMMISSIONERS AS THE ONLY HURDLE BEFORE BREAKING GROUND SEVERAL COMMISSIONERS BALKED ARGUING THAT TURNER ISN'T SHOULDERING ENOUGH OF THE FINANCIAL BURDEN TO MAINTAIN THE STADIUM ONCE THE BRAVES TAKE POSSESSION THE COST TO TAXPAYERS HAS BEEN ESTIMATED AT 110 MILLION OVER THE NEXT 40 YEARS WHAT'S MORE THE COMMISSION'S DELIBERATIONS WERE MARKED BY AN IMPASSIONED SPEECH BY MARTIN KING THE ELDEST SON OF THE REV MARTIN LUTHER KING JR THE CIVILRIGHTS LEADER MR KING BLASTED THE OLYMPIC COMMITTEE CHARGING THAT GREED EXCLUSIVITY AND ELITISM HAVE BECOME THE SYMBOLS OF ATLANTA'S OLYMPIC MOVEMENT ALL THINGS THAT MY FATHER FOUGHT AGAINST MR KING'S SPEECH LAID BARE THE STRAINED RELATIONS BETWEEN SOME MEMBERS OF ATLANTA'S LARGE AFRICANAMERICAN COMMUNITY AND THE SMALL GROUP OF LARGELY WHITE LAWYERS AND BUSINESS EXECUTIVES WHO ARE RUNNING THE GAMES WHILE THE COMMISSION HAS STAUNCHLY DEFENDED ITS RECORD ON RACE RELATIONS NOTING FOR INSTANCE THAT SOME 40 OF ITS 240 EMPLOYEES ARE MINORITIES SOME NEIGHBORHOOD LEADERS HAVE CRITICIZED OLYMPIC ORGANIZERS AS BEING INDIFFERENT TO THEIR CONCERNS AND CONSTITUENTS WHILE LOCAL GOVERNMENT OFFICIALS AND TURNER CONTINUE TO NEGOTIATE A SECOND VOTE IS SET FOR WEDNESDAY THE COMMITTEE FINDS ITSELF CAUGHT IN A SQUEEZE PLAY NEGOTIATIONS WITH CORPORATE BACKERS AND THE SALE OF US BROADCAST RIGHTS ARE TAKING LONGER THAN ANTICIPATED MEANING THAT MONEY OR THE LACK OF IT HAS BECOME A PRESSING ISSUE IN FEBRUARY THE COMMITTEE DISCLOSED THAT ITS PLANNED SURPLUS AFTER STAGING THE GAMES AT AN ESTIMATED COST OF 147 BILLION HAD SHRUNK TO ABOUT 117 MILLION FROM AN EARLIER FORECAST OF 132 MILLION NOW THE COMMITTEE IS FIVE WEEKS PAST ITS UNOFFICIAL DEADLINE FOR COMPLETING STADIUM TALKS SITE WORK IS SUPPOSED TO BEGIN IN LATE APRIL OR EARLY MAY ALREADY SEVERAL HUNDRED THOUSAND DOLLARS HAVE BEEN SPENT ON THE PROJECT BILLY PAYNE THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES' PRESIDENT AND CHIEF EXECUTIVE SAID IN AN INTERVIEW SATURDAY TO DATE THE DELAYS HAVEN'T HURT THE COMMITTEE'S WALLET HE SAID BECAUSE PREPARATIONS HAVE CONTINUED ON THE ASSUMPTION THAT THE BRAVES AND ATLANTA WILL KISS AND MAKE UP BUT IF THE DEAL UNRAVELS MUCH OF THE COMMITTEE'S INVESTMENT COULD BE WASTED THAT'S BECAUSE ORGANIZERS HAVE POURED THEIR ENERGIES INTO DESIGNING A STADIUM THAT WOULD LATER BECOME A BASEBALL PARK IF THE COMMITTEE IS FORCED TO MOVE TO ANOTHER SITE WHERE THE BRAVES AND BASEBALL WOULD NO LONGER BE PART OF THE EQUATION ARCHITECTS WOULD HAVE TO START FROM SCRATCH IN ALL LIKELIHOOD BUILDING A MORE TRADITIONAL TRACKANDFIELD FACILITY THAT WOULD BE TORN DOWN AFTER THE GAMES ARE OVER TURNER AND THE BRAVES MADE SOME CONCESSIONS BEFORE THE FULTON COUNTY COMMISSION'S MEETING LAST WEEK AGREEING FOR INSTANCE TO CAP TAXPAYERS' LIABILITY AT 100 MILLION OVER THE TERM OF THEIR LEASE AT THE NEW STADIUM BUT STAN KASTEN THE BRAVES'S PRESIDENT DECLINED TO COMMENT ON THE LATEST NEGOTIATIONS WE'VE PLAYED IT LOW KEY TO THIS POINT HE SAID AND THAT'S HOW WE'RE GOING TO KEEP IT MR PAYNE HOWEVER WAS MORE EMPHATIC WE MUST BEGIN MORE DELIBERATIVE PLANNING ON THE STADIUM AND SITE WORK IMMEDIATELY HE SAID WE'RE OUT OF TIME 9303080088 930308 PEPPERAND SALT THINKS HE'S GETTING THE BETTER OF THE DEAL IS DESCRIBING MY LIFE METAPHORICALLY 9303080087 930308 ENTERPRISE FINANCING SMALL BUSINESS FUNDS FLOURISH FOR COMMUNITY DEVELOPMENT GROUPS INDUSTRY EXPECTS BIGGEST BOOST FROM GOVERNMENT OVER NEXT 5 YEARS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL COMMUNITYDEVELOPMENT FINANCIAL INSTITUTIONS TO RECEIVE NEW FUNDS MORE THAN 800 MILLION EXPECTED OVER THE NEXT FIVE YEARS WOULD HELP INNERCITY NEIGHBORHOODS AND OTHER POOR SECTIONS OF THE US IT WOULD BE ONLY THE CORE OF A CAPITAL INFUSION OF UP TO 9 BILLION FOR STRUGGLING MOSTLY MINORITYOWNED BUSINESSES AND OTHER ECONOMICALLY STRETCHED BORROWERS SPECIALISTS SAY THE COMMUNITY FINANCIAL INSTITUTIONS KNOWN AS CDFIS GENERALLY HANDLE THE RISKIEST PART OF THE LOAN FOR EXAMPLE THEY MAY TAKE AN EQUITY POSITION IN THE RECIPIENT'S ENTERPRISE THAT ENABLES COMMERCIAL BANKS AND OTHER MAINSTREAM LENDERS TO TAKE SAFER AND MUCH LARGER PIECES OF THE FINANCING THE CDFIS WHICH INCLUDE DEVELOPMENT BANKS LOAN FUNDS CREDIT UNIONS AND MICROLOAN FUNDS RAISE MONEY FROM A VARIETY OF SOURCES INCLUDING FEDERAL AND STATE GOVERNMENTS CORPORATIONS COMMUNITY ORGANIZATIONS AND INDIVIDUALS BUT THE BIGGEST INJECTION OF MONEY OVER THE NEXT FEW YEARS IS LIKELY TO COME FROM WASHINGTON 468 MILLION THAT PRESIDENT CLINTON WANTS TO POUR INTO A PROPOSED NATIONAL NETWORK OF 100 NEW COMMUNITYDEVELOPMENT BANKS IN ADDITION THE NATION'S 42 COMMUNITYDEVELOPMENT LOAN FUNDS EXPECT THEIR INVESTORS TO PROVIDE 200 MILLION SAYS MARTIN TRIMBLE EXECUTIVE DIRECTOR OF THE FUNDS' TRADE GROUP AND COMMUNITYBASED CREDIT UNIONS WHICH INCREASINGLY ARE MAKING LOANS FOR LAUNCHING AND EXPANDING SMALL BUSINESSES ANTICIPATE ABOUT 175 MILLION IN NEW FUNDS SAYS CLIFF ROSENTHAL EXECUTIVE DIRECTOR OF THE CREDIT UNIONS' TRADE GROUP FINALLY MICROLOAN FUNDS WHICH LEND ANYWHERE FROM 250 TO 10000 TO TINY ENTERPRISES OR SELFEMPLOYED INDIVIDUALS ARE EXPECTED TO RAISE SUBSTANTIAL AMOUNTS SPECIALISTS SAY A STRONG FEDERAL COMMITMENT TO THE COMMUNITYDEVELOPMENT INDUSTRY IS CRUCIAL TO ITS SURVIVAL AS WELL AS TO THE REVITALIZATION OF THE BLIGHTED AREAS THE INDUSTRY SERVES SMALL BUSINESSES THERE NEED INSTITUTIONS WHERE THEY CAN CARRY OUT THEIR FINANCIAL TRANSACTIONS WITH THE MINIMUM OF TRANSACTION COST SAYS MR ROSENTHAL SMALL PUBLIC COMPANIES ARE USING RIGHTS OFFERINGS TO RAISE MONEY ARTEL COMMUNICATIONS CORP A MAKER OF HARDWARE FOR HIGHSPEED COMMUNICATIONS QUADRAX CORP AN ADVANCED MATERIALS MANUFACTURER AND VITRONICS CORP A MAKER OF CHIPMAKING EQUIPMENT HAVE IN RECENT MONTHS SUCCESSFULLY RAISED CAPITAL THROUGH RIGHTS OFFERINGS THESE GIVE EXISTING SHAREHOLDERS A CHANCE TO BUY MORE STOCK DIRECTLY AT A GIVEN PRICE THE OFFERINGS ARE ATTRACTIVE BECAUSE THEY GENERALLY RECEIVE EXPEDITED APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION AND BECAUSE THEY CAN BE DONE QUICKLY SAYS JEFFREY STOLER A PARTNER WITH THE PROVIDENCE RI LAW FIRM OF BROWN RUDNICK FREED & GESMER RAISING MONEY THROUGH SUCH A STRATEGY ALSO IS INEXPENSIVE BECAUSE FREQUENTLY IT CAN BE DONE WITHOUT THE HELP OF AN UNDERWRITER ADDS MR STOLER WHILE A PUBLIC SECONDARY OFFERING OF 10 MILLION MIGHT COST A COMPANY AS MUCH AS 1 MILLION IN FEES AND COMMISSIONS A SIMILAR RIGHTS OFFERING CAN COST LESS THAN HALF THAT MUCH HE SAYS MORE US ENTREPRENEURS INVEST IN CZECH AND SLOVAK REPUBLICS THE ENTREPRENEURIAL SPIRIT IN THE CZECH AND SLOVAK FEDERAL REPUBLICS IS STRONG ALIVE AND WELL SAYS JOHN PETTY CHAIRMAN OF THE CZECH AND SLOVAK AMERICAN ENTERPRISE FUND THAT INVESTS IN BUSINESSES THERE THE FUND SAYS IT INVESTED 7 MILLION IN 27 TRANSACTIONS INCLUDING SIX JOINT VENTURES IN ITS FIRST YEAR OF OPERATION ENDED LAST SEPT 30 MR PETTY EXPECTS THE PACE TO CONTINUE THROUGH FISCAL 1993 THE TWO REPUBLICS' SKILLEDLABOR POOLS AND THEIR RELATIVELY DEVELOPED MANUFACTURING ECONOMIES MAKE THEM A LOWCOST BASE FOR DOING BUSINESS WITH THE REST OF EUROPE ENTREPRENEURS AND FUND OFFICIALS SAY THOSE ADVANTAGES ATTRACTED LEADER GASKET INC A BATON ROUGE LA MAKER OF GASKETS FOR REFINING AND PETROCHEMICALS LEADER PRESIDENT CRAIG COOPER SAYS HIS FIRM LOOKED AT 30 MANUFACTURING SITES BEFORE TEAMING UP WITH KINEX A DIVERSIFIED MANUFACTURER IN SLOVAKIA KINEX'S FACTORY HAD ALMOST EXACTLY THE SAME EQUIPMENT THAT THREEYEAROLD LEADER USES IN LOUISIANA MR COOPER SAYS THE TWO COMPANIES SET UP A JOINT VENTURE AND RECEIVED A 318000 LOAN FROM THE FUND TO BUY SOME SPECIALIZED EQUIPMENT AND USE AS WORKING CAPITAL THE FUND ALSO PAID 400000 FOR A ONETHIRD STAKE IN THE NEW COMPANY LEADER BEGAN MANUFACTURING ITS GASKETS LAST OCTOBER TO SELL IN EUROPE AND IS ALREADY BRINGING SOME BACK TO SELL IN THE US THE RELATIVE SOPHISTICATION OF THE CZECH AND SLOVAK ECONOMIES AND THEIR CENTRALEUROPEAN LOCATION ALSO PROMPTED TWO US SCIENTISTS HARRY STEWART AND DONALD MACELWEE OF MALVERN PA TO START A FIREEXTINGUISHER BUSINESS IN POBEDIM A SMALL TOWN IN SLOVAKIA MESSRS STEWART AND MACELWEE JOINED FORCES WITH TWO CZECH EXPATRIATES TO START PYROKONTROL A COMPANY THAT WILL DEVELOP AND MANUFACTURE THESE DEVICES IN SLOVAKIA THE FOURSOME INVESTED 100000 OF THEIR OWN MONEY AS STARTUP CAPITAL AND GOT AN ADDITIONAL 745000 FROM THE CZECH AND SLOVAK ENTERPRISE FUND AND THOUGH THE COMPANY HAS YET TO GEAR UP FOR FULL PRODUCTION SALES THIS YEAR WILL EXCEED 1 MILLION MR MACELWEE SAYS MEANWHILE THOUGH US INVESTMENT IN JOINT ENTREPRENEURIAL VENTURES IN POLAND DECLINED IN 1992 AFTER A YEAR OF FRENZIED ACTIVITY SAYS THE POLISHAMERICAN ENTERPRISE FUND WE INVESTED TOO FAST CONCEDES ROBERT FARIS THE FUND'S CHIEF EXECUTIVE OFFICER SOME OF THE BUSINESSES MISJUDGED THE PACE OF ECONOMIC CHANGE IN THE COUNTRY WHILE OTHERS FOUND LOCAL PARTNERS INEXPERIENCED HE SAYS PENNSYLVANIA TO GET A VENTURECAPITAL FUND FOR MINORITY ENTREPRENEURS PNC BANK OF PITTSBURGH A UNIT OF PNC FINANCIAL CORP SAYS IT WILL INVEST 500000 IN KEYSTONE MINORITY CAPITAL FUND WHICH WILL FINANCE MINORITY BUSINESSES IN WESTERN PENNSYLVANIA OTHER INVESTORS INCLUDE THE STATE OF PENNSYLVANIA WHICH IS INVESTING 15 MILLION AND PITTSBURGH'S URBAN REDEVELOPMENT AUTHORITY WHICH WILL CONTRIBUTE 175000 THE FUND THE FIRST OF ITS KIND IN THE STATE IS AN OFFSHOOT OF THE STATE'S MINORITY ENTERPRISE CORP WHICH SINCE 1989 HAS BEEN PROVIDING TECHNICAL ASSISTANCE TO MINORITYOWNED BUSINESSES BUT THE GROUP ALSO FELT THAT THESE BUSINESSES NEEDED A POOL OF DEDICATED CAPITAL TO SEED THE FUND THE BANK AND THE STATE AND CITY AUTHORITIES ARE CONTRIBUTING ABOUT 22 MILLION THE MANAGERS EXPECT TO RAISE ANOTHER 78 MILLION FROM OTHER INVESTORS PRIVATE AND PUBLIC STATE OFFICIALS SAY THEY PLAN A SIMILAR FUND FOR EASTERN PENNSYLVANIA TO BE BASED IN PHILADELPHIA PNC BANK PITTSBURGH IS A UNIT OF PNC BANK CORP IN MONDAY'S ENTERPRISE COLUMN THE BANK WAS IDENTIFIED AS A UNIT OF PNC FINANCIAL CORP PNC BANK CORP'S PREVIOUS NAME 9303080086 930308 WORKPLACE UNIONS HIT CORPORATECAMPAIGN TRAIL BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL DAVE WATTS FLEW TO LONDON IN JANUARY TO SNEAK INTO THE ANNUAL SHAREHOLDERS MEETING OF TATE & LYLE PLC OFFICIALS OF THE GIANT MAKER OF SWEETENERS STOPPED HIM AT THE DOOR BUT THE UNION LEADER FROM DECATUR ILL STILL CLAIMED SUCCESS A UNION ALLY CONFRONTED TATE & LYLE CHAIRMAN NEIL SHAW FORCING HIM TO DEFEND THE COMPANY'S LABORRELATIONS POLICIES AT ITS AE STALEY UNIT IN DECATUR NO SWEET TALKING AT TATE BRITAIN'S DAILY MAIL ANNOUNCED TATE SHUTS THE DOOR ON US WORKERS STATED THE INDEPENDENT THE CORPORATE CAMPAIGN A SPORADIC TOOL OF ORGANIZED LABOR IN THE 1970S AND 1980S IS PICKING UP MOMENTUM AND CROSSING BORDERS MORE FREQUENTLY OFTEN THESE DAYS A DOZEN OR SO CAMPAIGNS ARE UNDER WAY AMONG MAJOR UNIONS THE CONTROVERSIAL TACTIC PROMISES TO BE A MAINSTAY IN LABOR'S ARSENAL EVEN AS THE CLINTON ADMINISTRATION PREACHES LABORMANAGEMENT COOPERATION MR WATTS'S 800MEMBER UNION LOCAL STILL HASN'T ACHIEVED THE LABOR CONTRACT IT SEEKS AT THE STALEY PLANT IN DECATUR BUT HE INSISTS THAT HIS UNION IS IN IT FOR THE LONG HAUL WE'LL FOLLOW TATE & LYLE AND STALEY TO EVERY CORNER OF THE WORLD IF THAT'S WHAT IT TAKES ASSERTS MR WATTS SUCH PRESSURE CAMPAIGNS ARE MORE COMMON AND MORE SUCCESSFUL SAYS CHARLES PERRY A WHARTON SCHOOL PROFESSOR WHO WROTE A BOOK ABOUT SOME PAST FAILED CORPORATE CAMPAIGNS THE CAMPAIGNS WILL CONTINUE HE PREDICTS AS LONG AS THE THREAT OF PERMANENT WORKER REPLACEMENTS MAKES THE STRIKE A LESS EFFECTIVE AND MORE DANGEROUS WEAPON FOR UNIONS UNION LEADERS AGREE JUST WALKING UP AND DOWN THE STREET WITH PICKET SIGNS WON'T DO IT TODAY DECLARES TEAMSTERS UNION PRESIDENT RON CAREY WHO RECENTLY CREATED A DEPARTMENT TO CONDUCT WHAT THE UNION CALLS STRATEGIC CAMPAIGNS THE TEAMSTERS EVEN PLANNED TO USE A CHILDREN'S TELEVISION CHARACTER BARNEY IN A RECENT CONTRACT DISPUTE WITH HASBRO INC PAWTUCKET RI AFTER LEARNING THAT THE COMPANY'S PLAYSKOOL UNIT HAD PURCHASED LICENSING RIGHTS TO MAKE BARNEY PRODUCTS THE UNION ARRANGED TO SEND LOOKALIKES OF THE PURPLE DINOSAUR TO THE AMERICAN INTERNATIONAL TOY FAIR IN NEW YORK THERE BARNEY WOULD PROCLAIM THAT HASBRO UNFAIRLY LOCKED OUT 80 WAREHOUSE WORKERS IN RHODE ISLAND THE UNION SAYS THE THREAT OF SUCH A PROTEST HELPED IT WIN A CONTRACT FOR THE WORKERS LAST MONTH SOME EMPLOYERS SAY THEY AREN'T IMPRESSED A SPOKESMAN FOR HASBRO MAINTAINS THE TEAMSTERS THREAT OF A CORPORATE CAMPAIGN HAD NOTHING TO DO WITH THE CONTRACT SETTLEMENT BARNEY CHARACTERS AT THE TOY FAIR WOULD HAVE HAD NO IMPACT ON OUR BUSINESS AT ALL HE CONTENDS NEITHER DOES CATERPILLAR INC PEORIA ILL THINK MUCH OF A CAMPAIGN BEING WAGED BY THE UNITED AUTO WORKERS IN THE WAKE OF THE UNION'S RETREAT FROM PICKET LINES LAST YEAR A CATERPILLAR SPOKESMAN SAYS THE UAW'S CAMPAIGN AMOUNTS TO A SERIES OF STAGED MEDIA EVENTS AND HAS HAD THE OPPOSITE EFFECT OF THE ONE INTENDED CUSTOMERS ARE CONTINUING TO TELL US TO HOLD THE LINE SAYS THE SPOKESMAN HOWEVER CATERPILLAR RECENTLY ASKED THE NATIONAL LABOR RELATIONS BOARD TO ORDER THE UNION TO STOP WHAT THE COMPANY SAID IS ILLEGAL PICKETING OF INDEPENDENT CATERPILLAR DEALERS IT SAID THE UAW HAD DISCOURAGED COERCED AND/OR PREVENTED SUPPLIERS AND CUSTOMERS FROM ENGAGING IN NORMAL BUSINESS WITH THE DEALERS A UNION SPOKESMAN DENIES THE UNION HAS DONE ANYTHING ILLEGAL SAYING UAW MEMBERS HAVE A RIGHT TO PUBLICIZE THEIR DISPUTE AND SHOW THEIR SOLIDARITY HOWARD BERNSTEIN A CHICAGO LAWYER WHO REPRESENTS EMPLOYERS SAYS CORPORATE CAMPAIGNS OFTEN MERELY EMBARRASS FIRMS AND COST THEM MONEY TO DEFEND THEMSELVES THERE'S A LOT OF SMOKE AND A LOT OF FLASH BUT NOT MUCH HEAT HE SAYS STILL MR BERNSTEIN ADVISES FIRMS TO FIGHT BACK BY MAKING SURE THEY COMPLY WITH GOVERNMENT REGULATIONS BY WARNING CUSTOMERS AND FINANCIAL INSTITUTIONS OF AN IMPENDING CAMPAIGN AND COUNTERATTACKING AGAINST A UNION'S MEDIA BLITZ THAT'S WHAT FOOD LION INC SALISBURY NC IS TRYING TO DO THE GROCERY CHAIN A UNIT OF DELHAIZE LE LION SA OF BELGIUM RECENTLY ASKED A CIRCUIT COURT IN GREENVILLE SC TO ASSESS DAMAGES AGAINST THE UNITED FOOD AND COMMERCIAL WORKERS UNION FOR AN ALLEGED SMEAR CAMPAIGN THE UNION DENIES THE ALLEGATIONS RESPONDING THAT IT'S TRYING TO HELP NONUNION WORKERS AT THE COMPANY PROTECT THEIR RIGHTS AS IN THE PAST UNIONS WAGING CAMPAIGNS TRY TO GET THE EMPLOYER IN TROUBLE WITH REGULATORS OR PRESSURE FINANCIAL SUPPORTERS BUT THEY'VE ALSO LEARNED TO FOLLOW COMPANIES ACROSS BORDERS TO ENLIST THE HELP OR SYMPATHY OF CUSTOMERS SUPPLIERS AND INVESTORS JOSEPH UEHLEIN OF THE AFLCIO'S INDUSTRIALUNION DEPARTMENT ESTIMATES THAT HE MADE A DOZEN TRIPS TO EUROPE DURING THE UNITED STEELWORKERS' 18MONTH DISPUTE AGAINST CLOSELY HELD RAVENSWOOD ALUMINUM CORP RAVENSWOOD WVA WHICH ENDED LAST YEAR CORPORATE CAMPAIGNS CARRY RISKS FOR UNIONS ESPECIALLY IF THEY PIT UNION MEMBERS AGAINST ONE ANOTHER RAY ROGERS A PIONEER OF CORPORATE CAMPAIGNS RECENTLY SIGNED ON WITH THE NEWSPAPER GUILD IN ITS BATTLE WITH MORTIMER ZUCKERMAN THE NEW OWNER OF NEW YORK'S DAILY NEWS BUT UNIONS THAT HAVE REACHED AGREEMENTS WITH THE NEW OWNER OBJECT TO THE CAMPAIGN WHICH INCLUDES A BOYCOTT OF THE NEWSPAPER AND A RECENT PROTEST AT MR ZUCKERMAN'S MANHATTAN RESIDENCE IN CENTRAL ILLINOIS MR WATTS AND LOCAL 837 OF THE ALLIED INDUSTRIAL WORKERS OF AMERICA BEGAN PREPARING MONTHS AGO FOR A CONFRONTATION WITH TATE & LYLE MR WATTS THE UNION PRESIDENT SAYS A STRIKE WAS OUT OF THE QUESTION BECAUSE THE WORKERS DIDN'T WANT TO RISK BEING REPLACED TO HELP FUND THE CAMPAIGN MEMBERS OF THE LOCAL VOTED TO INCREASE THEIR MONTHLY DUES THEY ALSO WALKED DOOR TO DOOR TO ENLIST COMMUNITY SUPPORT AND THEY HIRED MR ROGERS AND HIS NEW YORK CONSULTING FIRM CORPORATE CAMPAIGN INC LATER MR UEHLEIN AND ED FEIGEN ANOTHER CORPORATE CAMPAIGN EXPERT AT THE AFLCIO JOINED THE FRAY GOING TO LONDON SAYS MR WATTS MEANT TAKING THE BATTLE TO TATE & LYLE'S FRONT YARD MR FEIGEN SAYS HE MADE IT INTO THE COMPANY'S ANNUAL MEETING BY BORROWING A SHAREHOLDER'S PROXY CARD HE SAYS HE CONSIDERED HIS DISCUSSION WITH COMPANY EXECUTIVES A SUCCESS AFTER A STOCKHOLDER SUGGESTED MEDIATION TO HELP SETTLE THE DISPUTE UNION OFFICIALS IN THE STALEY DISPUTE SAY THE COMPANY'S CONTRACT PROPOSALS WOULD ERASE YEARS OF BARGAINING ELIMINATING PROTECTIONS SUCH AS SENIORITY RIGHTS AND STARTING NEW 12HOUR SHIFTS STALEY WHICH TATE & LYLE ACQUIRED IN 1988 SAYS IT'S TRYING TO BECOME MORE FLEXIBLE WHAT THIS ALL COMES DOWN TO IS CHANGES NECESSARY FOR THIS PLANT TO BECOME COMPETITIVE SAYS PAT MOHAN EXECUTIVE VICE PRESIDENT THE UNION'S CAMPAIGN HE ADDS HAS HAD NO IMPACT ON OUR LABOR STRATEGY SOME UNION LEADERS INSIST THAT THEY WOULD STILL RATHER COOPERATE WITH EMPLOYERS IN BAL HARBOUR FLA LAST MONTH PRESIDENTS OF UNIONS REPRESENTING WORKERS IN THE STEEL COMMUNICATIONS AND TEXTILE INDUSTRIES CALLED A PRESS BRIEFING TO PUSH THEIR VIEW THAT MANAGEMENT AND LABOR CAN TEAM UP TO BEAT THE COMPETITION WITH JOINT EMPLOYEEINVOLVEMENT PROGRAMS BUT UNIONS AREN'T ABOUT TO GIVE UP CORPORATE CAMPAIGNS AGAINST EMPLOYERS WHO RESIST ORGANIZING DRIVES OR TRY TO EXTRACT WHAT UNIONS SEE AS UNREASONABLE CONCESSIONS THE GOAL SAYS JACK SHEINKMAN PRESIDENT OF THE AMALGAMATED CLOTHING AND TEXTILE WORKERS IS TO GET BACK AT THE COMPANY WHERE IT HURTS LABOR CAMPAIGNS AGAINST SPECIFIC COMPANIES ARE BECOMING MORE COMMON SOME CURRENT EXAMPLES 9303080085 930308 COMPUTERS COMPAQ TO CUT DESKTOP PRICES AS MUCH AS 15 BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP TODAY WILL CUT ITS DESKTOP COMPUTER PRICES AS MUCH AS 15 EVEN AS THE COMPANY'S TOP EXECUTIVE SAYS COMPAQ'S STRATEGY OF CUTTHROAT PRICING MAY BE EASING ECKHARD PFEIFFER PRESIDENT AND CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT COMPAQ NO LONGER BELIEVES IT HAS TO OFFER THE LOWEST PRICED COMPUTERS TO STEAL BUSINESS FROM ITS BIGGEST COMPETITORS MR PFEIFFER SAID CONSUMERS HAVE BEEN BURNED IN RECENT MONTHS BY LOWPRICED LOWQUALITY MACHINES AND HAVE BEGUN CONSIDERING ISSUES OTHER THAN PRICE SUCH AS QUALITY AND SERVICE IN THEIR PC PURCHASING DECISIONS THERE'S BEEN A SHIFT IN THINKING MR PFEIFFER SAID WE DO NOT SEE OURSELVES AT A DISADVANTAGE IF WE ARE NOT PRICED AT OR BELOW A GIVEN COMPETITOR MR PFEIFFER DECLINED TO COMMENT ON WHETHER TODAY'S PRICE CUTS WHICH ARE EXPECTED TO SPARK ANOTHER ROUND OF PRICE CUTTING IN THE INDUSTRY REPRESENT THE LAST SIGNIFICANT REDUCTIONS PLANNED BY THE HOUSTON COMPANY MR PFEIFFER'S REMARKS COME NINE MONTHS AFTER COMPAQ SHED ITS IMAGE AS A MAKER OF ELEGANT OVERPRICED PCS BY INTRODUCING A NEW LOWEND COMPUTER LINE AND DRAMATICALLY LOWERING THE PRICE OF ITS OTHER MACHINES SINCE THAT JUNE LAUNCH THE COMPANY HAS KEPT ITS COMPUTER PRICES AMONG THE LOWEST IN THE BUSINESS A KEY FACTOR IN LAST YEAR'S 35 DROP IN PC PRICES INDUSTRYWIDE WHILE THE STRATEGY HELPED REVIVE COMPAQ'S FORTUNES NET INCOME LAST YEAR ROSE 63 FROM 1991 THE LOW PRICES HAVE BEGUN TO MAKE WALL STREET NERVOUS AT LEAST TWO INVESTMENT HOUSES HAVE DROPPED BUY RECOMMENDATIONS ON COMPAQ IN RECENT WEEKS BECAUSE OF FEARS THAT THE PRICE CUTS COULD CRIMP PROFIT MARGINS LAST MONTH DELL COMPUTER CORP COMPAQ'S MAJOR MAILORDER COMPETITOR SCRAPPED A PLANNED OFFERING OF FOUR MILLION COMMON SHARES FOLLOWING A LUKEWARM REACTION FROM INVESTORS ANTHONY TRISTANI A COMPUTER INDUSTRY ANALYST AT SOUTHCOAST CAPITAL CORP IN AUSTIN TEXAS SAID A STRONG COMPAQ BACKLOG AND SURGING DEMAND FOR ITS NEW PRODUCTS MEAN THE COMPANY CAN EASE UP ON PRICES AND STILL KEEP ITS SALES UP THEY DON'T HAVE TO BE TOO CRAZY ON PRICE HE SAID THEY HAVE SO MUCH BUSINESS TO HANDLE ALREADY STILL ANALYSTS SAY TODAY'S CUTS FROM COMPAQ LIKELY WILL SET OFF ANOTHER INDUSTRY PRICING SKIRMISH IN ADDITION TO THE 15 CUTS ON ITS DESKTOP MACHINES COMPAQ IS REDUCING ITS NOTEBOOK PRICES BY 9 AND THE PRICE OF ITS PRINTERS BY 20 THE CUTS ARE ACCOMPANIED BY 39 NEW NOTEBOOK AND DESKTOP MACHINES FROM COMPAQ INCLUDING A LOWEND MULTIMEDIA COMPUTER PRICED AT ABOUT 1700 ANALYSTS NOTE THAT MOST OF COMPAQ'S PRICE CUTS ARE LIMITED TO OLDER MACHINES AND THOSE BASED ON INTEL CORP'S 386 MICROPROCESSOR THE COMPANY'S NEW PRODUCTS ARE PREDOMINATELY 486BASED COMPUTERS REFLECTING A STRONG PREFERENCE AMONG CORPORATE BUYERS FOR THE FASTER MACHINES MR PFEIFFER THOUGH SAID COMPAQ'S MESSAGE IN COMING MONTHS WILL BE FOCUSED ON MORE THAN PRICE AND SPEED HE SAID THE COMPANY INTENDS TO HIGHLIGHT ITS ENGINEERING STRENGTHS AND DESIGN INNOVATIONS AS WELL AS A LOW COST STRUCTURE THAT HE HOPES WILL EASE WALL STREET'S CONCERNS AND HE SAID HE BELIEVES CONSUMERS ARE WILLING TO PAY EXTRA FOR THOSE PERKS THERE WAS IN THE LAST TWO YEARS THIS IDEA THAT A BOX IS A BOX IS A BOX HE SAID NOW YOU HAVE TO HAVE YOUR COMPANY BETTER POSITIONED 9303080084 930308 BUSINESS BRIEF PORSCHE AG GERMAN LUXURY CAR MAKER CONFIRMS LOSS FOR FIRST HALF GERMANY LUXURY CAR MAKER PORSCHE AG CONFIRMED THAT IT POSTED A GROUP LOSS IN THE FIRST HALF OF ITS CURRENT FISCAL YEAR OF 120 MILLION MARKS 732 MILLION THE COMPANY ANNOUNCED IN JANUARY THAT IT EXPECTED THE LOSS THE LOSS NEARLY DOUBLES THE LOSS OF 658 MILLION MARKS THE COMPANY HAD IN THE YEAR ENDED JULY 31 IN ADDITION TO THE GROUP LOSS THE COMPANY ALSO REPORTED THAT SALES PLUNGED 34 TO 820 MILLION MARKS FROM THE YEAREARLIER LEVEL OF 125 BILLION MARKS THE NUMBER OF CARS SOLD BY PORSCHE FELL 39 TO 6620 CARS FROM THE YEAREARLIER LEVEL OF 10854 CARS WHEN PRESENTING THE FIRSTHALF FIGURES PORSCHE CHAIRMAN WENDELIN WIEDEKING SAID HE EXPECTS SALES FOR THE FISCAL YEAR TO BE BETWEEN 17 BILLION MARKS AND 19 BILLION MARKS COMPARED WITH THE YEAREARLIER LEVEL OF 268 BILLION MARKS PRODUCTION FOR THE YEAR SHOULD TOTAL BETWEEN 15000 AND 17000 CARS HE SAID 9303080083 930308 NEW YORK LICENSE PLATES TO GET A PERSONAL LOOK A WALL STREET JOURNAL NEWS ROUNDUP NEW YORK LICENSE PLATES WILL GET A PERSONALIZED LOOK UNDER A NEW PROGRAM BY THE STATE'S DEPARTMENT OF MOTOR VEHICLES WHICH LATER THIS YEAR WILL BEGIN OFFERING PLATES FEATURING NEW YORK MAJOR LEAGUE SPORTS TEAMS AS WELL AS COLLEGE AND UNIVERSITY ASSOCIATION CAUSE AND ORGANIZATION PLATES ANALYSIS & TECHNOLOGY INC NORTH STONINGTON CONN SAID ITS GENERAL SYSTEMS SOLUTIONS UNIT WON A TWOYEAR CONTRACT ESTIMATED AT 31 MILLION FROM THE NEW YORK STATE VEHICLE REGISTRY TO PROVIDE THE CUSTOM PLATES UNDER THE NEW PROGRAM DRIVERS MAY PURCHASE RECYCLED ALUMINUM PLATES FEATURING A GRAPHIC REPRESENTING ONE OF 11 STATE REGIONS AND THE PROGRAM WILL BE EXTENDED TO TEAMS AND GROUPS LATER IN THE YEAR THE COMPANY SAID THE LICENSE PLATES WILL BE ORDERED THROUGH A TOLLFREE NUMBER 1800364PLATES CONNECTED TO A FULFILLMENT CENTER INTEGRATED WITH THE STATE'S CENTRAL REGISTRATION COMPUTER SYSTEM PROVIDING IMMEDIATE ONLINE TRANSACTION PROCESSING 9303080082 930308 LETTERS TO THE EDITOR HERE'S LOOKIN' OUT FOR YOU KID REGARDING DANIELLE CRITTENDEN'S FEB 12 EDITORIALPAGE STORY VALENTINE FICTION TWO LUCKY PEOPLE' IF MS CRITTENDEN LIVES ABOVE THE 20S IN MANHATTAN A SIREN FADING DOWN THIRD AND IS LOOKING UPTOWN BEFORE CROSSING THIRD AVENUE SHE'S GOING TO GET CREAMED 9303080081 930308 BUSINESS BRIEF NIPPONDENSO CO CONSOLIDATED PRETAX PROFIT FELL 10 IN DEC 31 YEAR NIPPONDENSO CO A MAJOR JAPANESE MAKER OF ELECTRONIC AUTO PARTS ANNOUNCED FRIDAY THAT ITS CONSOLIDATED PRETAX PROFIT DROPPED 10 DURING THE YEAR ENDED DEC 31 TO 8293 BILLION YEN 7101 MILLION FROM 9244 BILLION YEN THE YEAR BEFORE NET PROFIT FELL 31 TO 4195 BILLION YEN FROM 6075 BILLION YEN SALES ROSE 29 TO 1524 TRILLION YEN 1305 BILLION FROM 1481 TRILLION YEN NIPPONDENSO DIDN'T PROVIDE CONSOLIDATED FORECASTS FOR THE CURRENT YEAR BUT A SPOKESWOMAN SAID GROUP RESULTS SHOULD BE IN LINE WITH THE COMPANY'S UNCONSOLIDATED FORECASTS OF A 03 INCREASE IN PRETAX PROFIT AND A 06 RISE IN NET INCOME UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES NIPPONDENSO'S RELATIVELY SHARP 31 DROP IN NET PROFIT COMPARED WITH THE 10 FALL IN PRETAX PROFIT REFLECTS AN EXTRAORDINARY PROFIT OF 1615 BILLION YEN THE YEAR BEFORE FOR SALES OF FIXED ASSETS 9303080080 930308 BUSINESS BRIEF MARQUEST MEDICAL PRODUCTS INC COLORADO CONCERN REVEALS PLANS TO CLOSE MEXICAN PLANT MARQUEST MEDICAL PRODUCTS INC CONTINUING TO CONSOLIDATE OPERATIONS SAID IT WILL CLOSE ITS NOGALES MEXICO PLANT AND INTEGRATE THOSE OPERATIONS INTO ITS MAIN FACILITY IN ENGLEWOOD COLO A SPOKESMAN FOR THE MEDICAL PRODUCTS MAKER SAID THE NOGALES PLANT EMPLOYS 90 PEOPLE AND MANUFACTURES ABOUT 15 OF THE COMPANY'S PRODUCTS A SMALL REDUCTION IN EMPLOYMENT IS EXPECTED AS PART OF THE COSTCUTTING MOVE HE SAID SEPARATELY THE COMPANY SAID NEGOTIATIONS FOR A 65 MILLION CASH INFUSION FROM SCHERER HEALTHCARE INC ARE CONTINUING THE COMPANIES REACHED AN AGREEMENT IN PRINCIPLE ON THE INFUSION IN JANUARY MARQUEST HAS BEEN SUFFERING FROM LIQUIDITY PROBLEMS SINCE LATE 1991 WHEN THE FOOD AND DRUG ADMINISTRATION SUSPENDED ITS PRODUCTION FOR THREE MONTHS FOR FAILING TO COMPLY WITH MANUFACTURING STANDARDS THE SUSPENSION LED TO THE CANCELLATION OF A 5 MILLION LINE OF CREDIT FORCING THE COMPANY TO SELL BUSINESS SEGMENTS AND FACILITIES AND TO SEEK NEW CAPITAL 9303080079 930308 RUSSIA'S ECONOMIC REFORMS TAKE HOLD EVEN IN OUTER REACHES LIKE SIBERIA BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL CHITA RUSSIA IT'S 30 DEGREES BELOW ZERO CENTIGRADE AND SNOW COVERS THIS SMALL SIBERIAN CITY BUT VALENTINA SHARAVATOVA STANDS OUTSIDE SELLING SWEATERS AND TRYING TO BUY UP PRIVATIZATION VOUCHERS IT IS HARD TO IMAGINE THAT ECONOMIC REFORMS HAVE MADE A DENT IN PROVINCIAL CITIES LIKE CHITA WHERE THE STREETS ARE STILL NAMED LENIN AND OCTOBER AND YOUNG WOMEN STILL WEAR TRADITIONAL HEAVY FELT BOOTS RATHER THAN THE STYLISH SNOWGEAR FOUND 4800 KILOMETERS AWAY IN MOSCOW BUT MS SHARAVATOVA'S FORTITUDE SHOWS HOW ENTRENCHED ECONOMIC REFORMS HAVE BECOME EVEN AT RUSSIA'S OUTER REACHES SINCE LAUNCHING THE REFORM PROGRAM A YEAR AGO RUSSIAN REFORMERS' MAIN GOAL HAS BEEN TO IMPLEMENT AS MANY CHANGES AS POSSIBLE SO THAT THE PROCESS CAN'T BE REVERSED LIBERALIZING PRICES FOR EXAMPLE OPENED THE DOOR TO 30 MONTHLY INFLATION BUT ALSO TO THE IDEA THAT A SHOPPER MIGHT NOW FIND A CHEAPER PAIR OF SOCKS AROUND THE CORNER AND WITH THE PRIVATIZATION OF STATEOWNED INDUSTRY UNDER WAY MOST COMPANY BOSSES ARE TOO BUSY WORKING OUT HOW TO GET THE BIGGEST SHARE TO BOTHER PROTESTING THE IDEA ANY LONGER WHILE NOT EVERYONE IN THIS CENTRAL SIBERIAN DISTRICT OF 13 MILLION WELCOMES THE NEW IDEOLOGY REFORMS ARE MAKING THEMSELVES AT HOME HERE ARE SOME GLIMPSES OF HOW ECONOMIC REFORMS ARE PLAYING OUT IN THE HINTERLANDS RANGING FROM FROZEN STEPPES OF THE EVYENKI NATIVES TO A LIVELY CHINESE MARKET THAT ADJOURNS WITH A DEAFENING ROAR INSIDE AN UNHEATED CONCRETE WAREHOUSE THE OFFICIAL CHINA TRADING POINT IS A TOWER OF BABEL CHINESE AND MONGOLIAN TRADERS FROM ACROSS THE NEARBY BORDER HAGGLE WITH THEIR RUSSIAN COUNTERPARTS FROM AS FAR AWAY AS MOSCOW A YEAR AGO SUCH TRADING WAS ADHOC AND EVEN ILLICIT NOW CHINESE TRADERS COME IN BY TRUCK AND THE INFLOW OF CHINESE CONSUMER GOODS THROUGH PRIVATE TRADING HAS HELPED EASE SHORTAGES IN THE REGION OFFICIALS SAY IT ALSO HAS BROUGHT AN INFLUX OF RUSSIAN VISITORS BUYING IN CHITA OR USING IT AS A TRANSFER POINT TO GO SHOPPING IN CHINA SO GREAT IS THE DEMAND THAT AIRLINE TICKETS BETWEEN MOSCOW AND CHITA ARE HARD TO COME BY AND MOST TRAVELERS CARRY HUGE SUITCASES STUFFED WITH RUSSIAN GOODS THEY HOPE TO EXCHANGE THOSE GOODS FOR CHINESE PRODUCTS THAT CAN BE SOLD CLOSER TO HOME INSIDE THE OFFICIAL TRADING POINT THE RUSSIAN AND CHINESE CHATTER ECHOES IN THE CAVERNOUS FREEZING WAREHOUSE RUSSIANS LINE UP AROUND A HORSESHOESHAPED COUNTER AND ARRANGE THEIR WARES ARMY COATS MANUAL MEAT GRINDERS USED ICE SKATES THE RUSSIAN SELLERS SHOUT TO THE CHINESE BUYERS WHO MILL AROUND THE HORSESHOE'S CENTER ELSEWHERE A LINE OF CHINESE SELLERS SITTING ON HUGE BURLAP SACKS FILLED WITH LEATHER JACKETS PARKAS OR SCARVES WINDS AROUND THE ROOM AND RUSSIAN BUYERS CROWD BY IN AN ENDLESS STREAM THE GOING PRICE FOR EVERYTHING IS WELLKNOWN BUT UNWRITTEN A RUSSIAN MEAT GRINDER CAN BUY A CHINESE LEATHER JACKET A CHILD'S USED SHEARLING COAT MIGHT TRADE FOR SEVERAL WOOL SCARVES FROM MONGOLIA A RUSSIAN WOMAN STRIDES UP TO A CHINESE MAN SLAPS HIS SACK AND HOLDS UP THREE FINGERS OFFERING TO BUY HIS PARKAS FOR 3000 RUBLES EACH 660 THE MAN WAVES HIS HAND IN FRONT OF HIS FACE SAYING NYET NYET THE PRICE IS TOO LOW AT NOON THE POLICE COME IN AND FIRE OFF A VOLLEY OF CAPS THE ECHOING BLASTS EVENTUALLY CLEAR THE ROOM FOR A LUNCH BREAK THE TRADERS STRAGGLE OUT TO KILL THREE HOURS IN THE COLD BEFORE THE MARKET REOPENS ONE OF THE MAIN RESULTS OF ECONOMIC REFORM IN RUSSIA'S MAJOR CITIES IS A CHANGE IN ATTITUDE TOWARD COMMERCE PROFIT AND WEALTH NO LONGER IS IT WRONG TO BE A MIDDLEMAN OR BAD TO TRY TO GET RICH IN CHITA MARKET LOGIC HAS STARTED TO PENETRATE THE THINKING EVEN OF OFFICIALS WHO ROSE THROUGH THE RANKS OF COMMUNIST PARTY TRAINING BORIS IVANOV A FORMER PARTY COMMITTEE PLANNER AND NOW GOVERNOR OF CHITA DISTRICT DESCRIBES THE PLIGHT OF HIS AREA 13 MILLION PEOPLE NEARLY HALF OF THEM COMPROMISED BY POOR HEALTH OLD AGE OR UNEMPLOYMENT AND REQUIRING GOVERNMENT SUPPORT GREAT NATURAL RESOURCES BUT ALMOST NO INDUSTRIAL PRODUCTION AND MINIMAL FARMING SO THE REGION IMPORTS TWOTHIRDS OF THE PRODUCTS IT USES PEOPLE COMPLAIN OF INFLATION HE SAYS BUTTER IS SELLING FOR AN ASTOUNDING 600 RUBLES PER KILOGRAM ABOUT 60 CENTS A POUND MY CENTRAL PROBLEM IS THE SUPPLY OF GOODS HE SAYS MANY CONSERVATIVES SAY REGULATE EVERYTHING' BUT I ALWAYS TRY TO EXPLAIN TO MY PEOPLE THAT PRICES HAVE TO BE HIGHER HERE BECAUSE WE IMPORT SO MUCH IF WE SOLD BUTTER FOR 700 RUBLES PER KILO AND MOSCOW SOLD IT FOR 400 RUBLES ALL THE BUTTER WOULD COME HERE NINETY MINUTES BY PROPELLER PLANE FROM CHITA INTO THE FROZEN STEPPE A SMALL NATIVE CLAN NAMED THE EVYENKI LIVES WHERE IT HAS FOR GENERATIONS IN SEVERAL SETTLEMENTS SOME 1300 EVYENKI LIVE IN TEEPEELIKE HOUSES OFTEN WITHOUT WOODEN FLOORS FOLLOWING THE SAME TRADITIONS AS THEY HAVE SINCE BEFORE THE REVOLUTION BUT EVEN HERE ECONOMIC REFORMS ARE FELT UNFORTUNATELY PAINFULLY THE MAIN SOURCE OF INCOME FOR THE EVYENKI HAS ALWAYS BEEN THE REINDEER MEAT AND SABLE FURS HUNTED BY THE MEN UNDER SOVIET CENTRAL PLANNING ACCESS TO THE REINDEER HERDS WAS ORGANIZED INTO A KIND OF EXTENSION OF THE STATEFARM SYSTEM THE HUNTERS WERE ASSURED A REGULAR INCOME IN THE PAST THE FARMS WERE SUBSIDIZED AND WE HAD STATE ORDERS AND PLANS FOR THE AMOUNT OF MEAT AND FUR WE WOULD SELL EXPLAINS NATALIA TOKARENKO EVYENKI REPRESENTATIVE TO THE ASSOCIATION OF NORTHERN PEOPLES THEY PAID US A MEAGER SUM BUT IT WAS ENOUGH FOR OUR MINOR NEEDS WE NEVER WENT ANYWHERE A ROUND WOMAN IN HER 40S WITH CURLY BLACK HAIR MS TOKARENKO IS RETURNING HOME DEJECTED AFTER A MONTHLY MEETING WITH LOCAL OFFICIALS TO ARGUE FOR MORE STATE SUPPORT NOW THERE ARE NO STATE ORDERS AND THE EVYENKI DESPITE THEIR ISOLATION HAVE TO FIND THEIR OWN CUSTOMERS AND ARRANGE THEIR OWN TRANSPORTATION SAYS MS TOKARENKO PRIVATE PEOPLE FROM THE AREA WHO HAVE MONEY COME AND NOW A HUNTER SELLS AT ANY PRICE SHE SAYS A SABLE FUR THAT SHOULD FETCH 25000 RUBLES FOR EXAMPLE IS GETTING ABOUT 4000 RUBLES FRESH OUT OF FAITH IN THE RUSSIAN AND LOCAL GOVERNMENTS MS TOKARENKO SIGHS WE WISH THE FOREIGNERS WOULD COME 9303080078 930308 INTERNATIONAL GERMAN VOTERS TURN TO RIGHT IN STATE POLL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMANY'S FAR RIGHT MADE HEFTY GAINS IN A VOTE THAT UNDERSCORES THE GROWING REBELLION AGAINST THE NATION'S MAINSTREAM POLITICAL PARTIES THE RIGHTIST REPUBLICANS SNARED MORE THAN 8 OF THE VOTE IN YESTERDAY'S COMMUNAL ELECTIONS IN THE WESTERN GERMAN STATE OF HESSEN ACCORDING TO LATE RESULTS AND IN FRANKFURT NEARLY ONE IN 10 VOTERS PICKED THE FAR RIGHT BUT THE RIGHTIST SURGE CAME MAINLY AT THE EXPENSE OF THE LEFTIST SOCIAL DEMOCRATS THE MAIN OPPOSITION PARTY AT THE NATIONAL LEVEL RATHER THAN CHANCELLOR HELMUT KOHL'S RULING CHRISTIAN DEMOCRATS YESTERDAY'S VOTE WAS THE FIRST TEST OF VOTER SENTIMENT SINCE A SURGE OF NEONAZI VIOLENCE LAST FALL AND IS ONE OF ONLY TWO POLLS TO OCCUR THIS YEAR IN GERMANY MANY ANALYSTS HAD PREDICTED MR KOHL'S CHRISTIAN DEMOCRATS WOULD BE THE BIG LOSERS MR KOHL'S POPULARITY HAS SLUMPED IN RECENT MONTHS AND SOME THOUGHT VOTERS WOULD SHOW THEIR DISPLEASURE WITH BONN BY VOTING AGAINST MR KOHL'S PARTY LOCALLY BUT THE CHRISTIAN DEMOCRATS SHED ONLY ABOUT TWO PERCENTAGE POINTS OF THEIR OVERALL SUPPORT AND MR KOHL IS LIKELY TO SEIZE ON THAT AS EVIDENCE OF HIS POLITICAL RESILIENCE THE MAIN MESSAGE OF YESTERDAY'S ELECTION HOWEVER WAS THAT VOTERS ARE ANGRY PARTICULARLY OVER THE CREDIBILITY OF ESTABLISHED PARTIES AND THE INFLUX OF FOREIGNERS ABOUT A THIRD OF ELIGIBLE VOTERS STAYED HOME A HIGH NUMBER BY GERMAN STANDARDS AND THE SURGE OF SUPPORT FOR THE REPUBLICANS A PARTY WHICH IS OPENLY ANTIFOREIGNER UNDERSCORED THE DISSATISFACTION WITH GERMANY'S BIG PARTIES IN THE LAST COMMUNAL VOTE IN 1989 THE RIGHTIST PARTY GOT LESS THAN 1 YESTERDAY'S OUTCOME MEANS THE SMALL PARTY WILL BE REPRESENTED IN MANY LOCAL ASSEMBLIES INCLUDING IN MAJOR CITIES SUCH AS FRANKFURT AND HANAU THIS COULD SHAKE ALL THE TRUST ABROAD WHICH HUNDREDS OF THOUSANDS OF DEMONSTRATORS HAVE GAINED SAID KARSTEN VOIGT A LEADING MEMBER OF THE SOCIAL DEMOCRATS SPEAKING ON TELEVISION AFTER THE ELECTION MR VOIGT WAS REFERRING TO THE MASSIVE PUBLIC PROTESTS AGAINST THE FAR RIGHT WHICH HAVE OCCURRED ACROSS GERMANY IN RECENT MONTHS THE OTHER BIG WINNERS IN THE ELECTION WERE THE GREENS WHICH EMERGED AS THE THIRDSTRONGEST PARTY WITH ABOUT 11 OF THE VOTE THE ENVIRONMENTALIST PARTY HAS LONG ENJOYED FIRM SUPPORT IN THE HIGHLY INDUSTRIALIZED REGION BUT A RECENT CHEMICAL SPILL AT THE HOECHST AG FACTORY OUTSIDE FRANKFURT MAY HAVE PUSHED SOME VOTERS TOWARD THE GREENS 9303080077 930308 ECONOMY BANKS' LENDING FILES WILL BE EXAMINED FOR BIAS AS AGENCY EXPANDS PROGRAM BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY PLANS TO EXPAND ITS BANKEXAMINATION PROCESS TO DO A BETTER JOB OF FERRETING OUT MORTGAGELOAN DISCRIMINATION ACTING COMPTROLLER STEPHEN STEINBRINK SAID IN A SPEECH THAT THE OFFICE WILL GO NATIONWIDE WITH A METHOD IT HAS BEEN USING ONLY ON A LIMITED BASIS HAVING EXAMINERS COMPARE LOAN REJECTIONS FOR MINORITY APPLICANTS WITH CREDIT APPROVALS FOR WHITES TO DETERMINE WHEN DIFFERENCES IN THE LENDING DECISIONS REFLECT RACIAL OR ETHNIC BIAS AMONG OTHER THINGS EXAMINERS WILL LOOK TO SEE WHETHER BANKLOAN OFFICERS GIVE SPECIAL TREATMENT TO WHITE APPLICANTS WITH PROBLEMS LIKE SPOTTY WORK HISTORIES COMPARED WITH THEIR TREATMENT OF MINORITY APPLICANTS WITH COMPARABLE RECORDS WHERE DISCRIMINATION IS FOUND WE WILL TAKE WHATEVER ACTION IS NECESSARY TO ELIMINATE IT MR STEINBRINK SAID HE SPOKE AT A MEETING OF THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL WHICH OVERSEES GOVERNMENT LENDINGEXAMINATION ACTIVITIES THE COMPTROLLER REGULATES ABOUT 3700 NATIONAL BANKS WHICH HAVE ROUGHLY TWOTHIRDS OF THE ASSETS OF THE NATION'S COMMERCIAL BANKS THE EXPANDED EXAMINATION PROCESS COMES AMID GROWING COMPLAINTS BY COMMUNITY AND OTHER GROUPS AND MEMBERS OF CONGRESS THAT THE REGULATORS HAVE MOVED TOO SLOWLY THE CRITICS ALL HAVE FOCUSED ON ANALYSES OF MORTGAGE AND OTHER LENDING THAT SHOW HIGHER RATES OF LOAN DENIALS FOR BLACKS AND OTHER MINORITIES EVEN ADJUSTING FOR SUCH FACTORS AS POOR CREDIT HISTORY THE COMPTROLLER'S NEW EXAMINATION PROCEDURES WILL TAKE ADVANTAGE OF A GROUNDBREAKING STUDY BY THE BOSTON FEDERAL RESERVE THE STUDY RELEASED LAST FALL FOUND THAT MINORITY APPLICANTS SEEKING MORTGAGES ARE NEARLY 60 MORE LIKELY TO BE REJECTED THAN WHITE PEOPLE EVEN WHEN THEY HAVE IDENTICAL ECONOMIC CHARACTERISTICS BUT THE COMPTROLLER'S EXAMINERS WON'T BE ABLE TO DELVE INTO THE PROBLEM AS EXTENSIVELY AS THE BOSTON FED DID A SPOKESWOMAN SAID INSTEAD THE EXAMINERS WILL PULL SAMPLES FROM BANKLOAN FILES MR STEINBRINK SAID ALL 2770 OF THE COMPTROLLER'S EXAMINERS WILL BE INVOLVED IN THE SCREENING ABOUT 100 EXAMINERS TOOK THE NEW APPROACH IN THE LIMITED EXPERIMENT IN LATE 1991 THE AGENCY'S SPOKESWOMAN SAID HERETOFORE MOST EXAMINATIONS BY THE COMPTROLLER AND OTHER FEDERAL FINANCIAL REGULATORS CONCENTRATED ON WHETHER INDIVIDUAL DECISIONS ON MINORITY LOAN APPLICATIONS SHOWED BIAS THE CONCLUSION WAS USUALLY THAT NO BIAS WAS EVIDENT MR STEINBRINK SAID NOW THE COMPTROLLER'S OFFICE WILL USE COMPARISONS OF BANKLENDING FILES IN DECIDING WHAT CASES WILL BE REFERRED TO THE JUSTICE DEPARTMENT FOR ENFORCEMENT ACTION UNDER LAWS BANNING LENDING DISCRIMINATION FEDERAL RESERVE BOARD MEMBER JOHN LAWARE SAID IN RECENT TESTIMONY BEFORE THE SENATE BANKING COMMITTEE THAT EACH OF FOUR FINANCIAL REGULATORY AGENCIES WILL PICK AN INITIAL FIVE OR SIX BANKS OR THRIFT INSTITUTIONS FROM A LIST OF 200 WITH PERHAPS SUSPICIOUS TREATMENT OF RACIAL MINORITIES IN THEIR LOAN DECISIONS THOSE CASES WILL BE REFERRED TO THE JUSTICE DEPARTMENT WHICH WILL DECIDE WHICH ONES TO INVESTIGATE THE FOUR AGENCIES ARE THE FED COMPTROLLER FEDERAL DEPOSIT INSURANCE CORP AND OFFICE OF THRIFT SUPERVISION 9303080076 930308 BUSINESS BRIEF RICOH CO US SUBSIDIARY ACQUIRES A COMPANY IN NEW JERSEY RICOH CORP WEST CALDWELL NJ SAID IT ACQUIRED A BUSINESSEQUIPMENT DEALER IN NEW JERSEY ADDING TO A GROWING TREND OF JAPANESE COMPANIES ACQUIRING DEALERSHIPS IN THE US THE ACQUIRED COMPANY CLOSELY HELD AMERICAN OFFICE EQUIPMENT CO FAIRFIELD NJ SELLS AND SERVICES RICOH COPIER AND FACSIMILE MACHINES THROUGH FIVE OFFICES SERVING NEW JERSEY MANHATTAN AND ROCKLAND COUNTY NY AND HAS ANNUAL REVENUE OF 16 MILLION TERMS OF THE ACQUISITION WEREN'T DISCLOSED RICOH CORP WITH REVENUE OF ABOUT 1 BILLION SELLS COPIERS AND FACSIMILE MACHINES THROUGH ABOUT 600 INDEPENDENT OFFICE MACHINE DEALERS IN THE US ABOUT 40 OF ITS COPIERS ARE MADE IN THE US AND THE REST ARE SHIPPED FROM ASIA AND EUROPE RICOH CORP IS A SUBSIDIARY OF TOKYOBASED RICOH CO A MAKER OF AUTOMATED OFFICE EQUIPMENT ELECTRONICS AND PHOTOGRAPHIC EQUIPMENT 9303080075 930308 ANALYSTS SWITCH EMPLOYERS IN SEARCH OF BETTER OPPORTUNITIES HIGHER PAY BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK CALL IT MUSICAL CHAIRS OR CALL IT THE WALL STREET VERSION OF BASEBALL FREE AGENCY BUT NO MATTER WHAT YOU CALL IT IT'S A SELLERS' MARKET AS MANY OF THE MOST WELLREGARDED SECURITIES ANALYSTS PACK THEIR BAGS THIS WEEK IN SEARCH OF THE BEST AND IN MOST CASES THE HIGHESTPRICED OFFER MOVEMENT BETWEEN COMPANIES BY ANALYSTS IS CERTAINLY NOT UNUSUAL ESPECIALLY THIS MONTH WHEN YEAREND RESEARCH AND/OR BANKING BONUS CHECKS HAVE JUST FINISHED CLEARING THE BONUS CHECKS PROBABLY WENT OUT IN MIDDLE JANUARY AT WHICH POINT PEOPLE HAD TO DECIDE WHETHER OR NOT THEY WERE HAPPY SAID JOHN KEEFE AN INDEPENDENT NEW YORK BROKERAGE ANALYST IF THEY WEREN'T HAPPY THE RESUMES WENT OUT THE NEXT DAY THAT TAKES A FEW WEEKS AND HERE WE ARE ON MARCH 5 ALTHOUGH MOST OF THE ANALYSTS CONTACTED SAID THEY LEFT FOR BETTER OPPORTUNITIES IT'S LIKELY THOSE OPPORTUNITIES INCLUDED INCREASED COMPENSATION ONE WALL STREET RESEARCH OFFICIAL SAID SALARIES ARE GOING UP AS THE COMPETITIVE PRESSURE TO IMPROVE AND IN SOME CASES JUST MAINTAIN QUALITY RESEARCH RISES IT'S A GOOD TIME TO MOVE MR KEEFE SAID THIS IS WALL STREET'S VERSION OF CAPITAL SPENDING IN RESPONSE TO THE BOOM IN PROFITS IN 1991 AND 1992 THERE'S MONEY OUT THERE AND THE STOCK MARKET IS AT AN ALLTIME HIGH SO ALL ANALYSTS LOOK LIKE GENIUSES PLUS MR KEEFE SAID IT'S HAPPENING ALL OVER THE STREET NOT JUST WITH ANALYSTS AMONG THOSE MOVING ARE THREE SMITH BARNEY HARRIS UPHAM & CO ANALYSTS ALL OF WHOM ARE MEMBERS OF INSTITUTIONAL INVESTOR MAGAZINE'S 1992 ALLAMERICA RESEARCH TEAM ED TIRELLO WHO FOLLOWS THE UTILITIES INDUSTRY TO NATWEST SECURITIES DANIEL TULIS NATURAL GAS TO BEAR STEARNS & CO AND JOSEPH FRANCE HOSPITAL SERVICES/MEDICAL SUPPLIES TO MERRILL LYNCH & CO MR TIRELLO RANKED SECOND IN HIS AREA IN THE ALLAMERICA LISTINGS WHILE MESSRS FRANCE AND TULIS TIED FOR THIRD IN THEIR AREAS SMITH BARNEY A UNIT OF PRIMERICA CORP REPLACED MR TIRELLO WITH JAY DOBSON 26 YEARS OLD FROM PAINEWEBBER INC PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA IS LOSING TWO ANALYSTS DAVID FLEISCHER NATURAL GAS TO GOLDMAN SACHS & CO AND TRACEY TUTTLE UTILITIES WHO WILL JOIN MR TIRELLO AT NATWEST MR FLEISCHER TIED FOR THIRD PLACE ON THE INSTITUTIONAL INVESTOR ALLAMERICA TEAM ALSO LOSING TWO ANALYSTS WAS MORGAN STANLEY & CO A UNIT OF MORGAN STANLEY GROUP INC ANDREW KESSLER ELECTRONICS TO INVESTMENT BANKING BOUTIQUE UNTERBERG HARRIS WHERE HE WILL CONCENTRATE ON TECHNOLOGY MEDIA AND COMMUNICATIONS AS WELL AS EMERGING INDUSTRIES AND DANIEL REINGOLD TELECOMMUNICATIONS TO MERRILL LYNCH MR KESSLER WON A SECONDPLACE RANKING IN THE ALLAMERICA SURVEY WHILE MR REINGOLD TIED FOR THIRD MEANWHILE JORDAN ESTRA FORMERLY METALS AND MINING ANALYST AT OPPENHEIMER & CO JOINED MERRILL LYNCH ABOUT TWO WEEKS AGO HE WILL COVER STEEL COMPANIES FOR MERRILL 9303080074 930308 SOUTH KOREAN PROBE OF POHANG TAXES FUELS SPECULATION ABOUT PARK'S OUSTER BY KIM SOO MI SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA POHANG IRON & STEEL CO ALREADY SUFFERING FROM SLACK WORLD DEMAND FOR STEEL PRODUCTS NOW FACES THE POSSIBILITY OF LIFE WITHOUT ITS FOUNDER AND HONORARY CHAIRMAN PARK TAE JOON THE SPECULATION WAS SPARKED BY THE LAUNCH LAST MONTH OF AN INVESTIGATION INTO POSCO'S TAX AFFAIRS TAX OFFICIALS SAY THE PROBE IS MERELY A ROUTINE INVESTIGATION THAT HAD BEEN HELD UP DURING THE PAST EIGHT YEARS BECAUSE OF STAFF SHORTAGES BUT LOCAL PRESS REPORTS SAY THE GOVERNMENT MAY USE THE TAX PROBE TO OUST MR PARK CITING RUMORS THAT THE INVESTIGATORS ARE LOOKING FOR EVIDENCE MR PARK USED COMPANY FUNDS TO FURTHER HIS POLITICAL CAREER A POSCO SPOKESMAN DENIES THAT THERE WAS ANY MISUSE OF FUNDS BUT IT'S COMMON PRACTICE FOR SOUTH KOREAN COMPANIES TO CONTRIBUTE LARGE SUMS TO POLITICAL CAUSES SOMETIMES DISGUISING THE REAL DESTINATION OF THE MONEY IN ANY CASE PRESIDENT KIM IS ALREADY IN A STRONG POSITION TO REMOVE MR PARK THE GOVERNMENT DIRECTLY HOLDS A 35 STAKE IN POSCO BUT INDIRECTLY IT CONTROLS AS MUCH AS 559 BECAUSE OF ADDITIONAL STAKES HELD BY GOVERNMENT COMMERCIAL BANKS ANALYSTS SAY MR PARK DESERVES MUCH OF THE CREDIT FOR BUILDING POSCO SINCE 1973 INTO THE WORLD'S THIRDLARGEST STEELMAKER WITH AN ANNUAL CAPACITY OF 208 MILLION TONS OF STEEL ONLY JAPAN'S NIPPON STEEL CO AND USINOR SACILOR OF FRANCE ARE LARGER OH JAE WWHAN AN ANALYST AT DAISHIN SECURITIES CO SAYS POSCO WILL FACE DIFFICULTIES IF MR PARK IS REMOVED MR PARK'S REPUTATION AND BUSINESS CONTACTS ARE OFTEN CRUCIAL TO THE COMPANY'S SUCCESS IN BREAKING INTO NEW MARKETS WHICH ARE CRITICAL TO THE COMPANY'S FUTURE MR OH SAYS COMPANY OFFICIALS HOPE THE GOVERNMENT WON'T DARE TO THROW POSCO INTO MANAGEMENT TURMOIL BY UNSEATING MR PARK A MOVE THAT WOULD SEND RIPPLES ACROSS THE NATION'S WHOLE ECONOMY THEY POINT TO THE NEW GOVERNMENT'S ELECTION PROMISE THAT IT WOULD INJECT A BREATH OF NEW LIFE INTO THE ECONOMY WHICH IS SUFFERING FROM THE LOWEST GROWTH IN A DECADE POSCO MANAGERS ALREADY THREATENED TO RESIGN EN MASSE IN A SHOW OF LOYALTY TO MR PARK LAST OCTOBER WHEN HIS DISPUTE WITH MR KIM ESCALATED BEFORE THE DECEMBER PRESIDENTIAL ELECTIONS MR PARK 65 YEARS OLD ANGERED MR KIM BY SUGGESTING HE MIGHT RUN AS A PRESIDENTIAL CANDIDATE WHICH WOULD HAVE THREATENED MR KIM'S CHANCES IN THE ELECTION BY CREATING A SPLIT IN THE RULING DEMOCRATIC LIBERAL PARTY IN THE END MR PARK DIDN'T RUN FOR THE PRESIDENCY AND HE STEPPED DOWN AS POSCO EXECUTIVE CHAIRMAN IN AN ATTEMPT TO PROTECT HIS COMPANY FROM POLITICAL FALLOUT EVEN SO HE HAS REMAINED ACTIVELY INVOLVED IN THE COMPANY'S MANAGEMENT AND STILL SIGNS MOST MAJOR CONTRACTS WITH FOREIGN COMPANIES THE POSCO SPOKESMAN SAYS HE'S NOT SURE WHAT WILL HAPPEN AT THE HOLDERS MEETING BUT COMPANY OFFICIALS SAY THE SPECULATION ABOUT MR PARK HAS COME AT A BAD TIME THE COMPANY FACES AN UPHILL TASK IN DEALING WITH DETERIORATING BUSINESS CONDITIONS SUCH AS GROWING PROTECTIONISM OVERSEAS AND A GLUT IN THE GLOBAL STEEL MARKET THAT HAS ALREADY FORCED POSCO INTO A PRICE WAR MOREOVER THE US ONE OF POSCO'S MAJOR EXPORT MARKETS HAS SLAPPED PRELIMINARY PUNITIVE DUTIES OF 30 ON THE COMPANY FOR ALLEGEDLY SELLING STEEL PRODUCTS BELOW FAIR PRICES IN THE US STILL POSCO REPORTED SOLID INCREASES IN ITS BUSINESS LAST YEAR WITH SALES RISING 66 TO 618 TRILLION WON 778 BILLION FROM 58 TRILLION WON IN 1991 NET INCOME ROSE 27 TO 1851 BILLION WON FROM 1457 BILLION WON POSCO HAS PROJECTED THAT 1993 SALES WILL RISE 10 TO 68 TRILLION WON WHILE PROFITS WILL JUMP 19 TO 220 BILLION WON KIM YOUNG KWON AN ANALYST AT DAEWOO SECURITIES CO SAYS POSCO IS LIKELY TO ACHIEVE ITS SALES GOAL FOR 1993 BUT HE DOUBTS THE COMPANY WILL MEET ITS PROFIT TARGET BECAUSE OF PRICE CUTTING IN THE GLOBAL STEEL MARKET 9303080073 930308 BUSINESS BRIEF CHASE MANHATTAN CORP BANK TO MERGE SIX FUNDS WITH ITS VISTA FUND GROUP CHASE MANHATTAN BANK SAID IT REACHED AN AGREEMENT TO MERGE SIX OLYMPUS MUTUAL FUNDS WITH ITS VISTA FUND GROUP AND TO ACQUIRE CERTAIN ASSETS OF THE OLYMPUS FUNDS' MANAGING GROUP CHASE WOULD BE ACQUIRING ASSETS OF OLYMPUS ASSET MANAGEMENT CO A UNIT OF ASSOCIATED PLANNERS GROUP INC LOS ANGELES VISTA'S PORTFOLIOS ARE MANAGED BY CHASE MANHATTAN PRIVATE BANK A UNIT OF CHASE MANHATTAN CORP THE PROPOSED TRANSACTION MAY WELL MARK THE FIRST TIME THAT A BANKMANAGED MUTUAL FUND GROUP HAS ACQUIRED AN INDEPENDENT MUTUAL FUND ORGANIZATION CHASE SAID MERGER OF THE SIX OLYMPUS FUNDS INTO VISTA IS SUBJECT TO APPROVAL BY OLYMPUS' BOARD AND FUND SHAREHOLDERS CHASE SAID THE TRANSACTION WOULD BROADEN ITS FUND OFFERINGS AS WELL AS ITS BROKER/DEALER NETWORK CHASE WHICH SAID ITS VISTA FUNDS TOTALED 3 BILLION ON MARCH 1 SAID VISTA'S TOTAL ASSETS INCLUDING OFFSHORE TRUST FUNDS WOULD BE MORE THAN 34 BILLION AFTER THE TRANSACTION FOUR OF THE OLYMPUS FUNDSGROWTH INVESTMENT QUALITY BOND NATIONAL TAXFREE AND STOCKWOULD BE MERGED INTO EXISTING VISTA FUNDS WHILE THE CALIFORNIA INTERMEDIATE TAXFREE AND EQUITY INCOME FUNDS WOULD BE ADDED TO THE VISTA FUND GROUP 9303080072 930308 TOP EXECUTIVES AT MERRILL LYNCH GET HEFTY '92 PAY BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO AWARDED ITS TOP TWO EXECUTIVES 1992 PAY PACKAGES CURRENTLY VALUED AT MORE THAN 78 MILLION APIECE AMID RECORD EARNINGS AT THE NATION'S LARGEST BROKERAGE FIRM IN A PRELIMINARY PROXY STATEMENT MERRILL SAID CHAIRMAN WILLIAM A SCHREYER AND PRESIDENT DANIEL P TULLY EACH RECEIVED 1992 CASH PAY OF 52 MILLION THAT'S AN INCREASE OF 16 AND 36 RESPECTIVELY FROM THE 1991 CASH PAY OF 45 MILLION FOR MR SCHREYER AND 38 MILLION FOR MR TULLY AS PART OF THEIR 1992 PAY PACKAGES MESSRS SCHREYER AND TULLY EACH ALSO RECEIVED RESTRICTED STOCK AND OPTIONS ON MERRILL SHARES THAT THE COMPANY CURRENTLY VALUES AT ABOUT 26 MILLION BUT THAT DON'T FULLY VEST FOR FOUR YEARS LAST YEAR MR SCHREYER ALSO CASHED IN 70000 MERRILL STOCK OPTIONS VALUED AT 15 MILLION BRINGING HIS TOTAL INCOME FOR THE YEAR TO MORE THAN 93 MILLION A MERRILL SPOKESMAN SAID THE OPTIONS WERE CASHED IN BY MR SCHREYER WHO RELINQUISHED HIS CHIEF EXECUTIVE ROLE TO MR TULLY IN MAY AND WILL RETIRE THIS JUNE FOR RETIREMENT PLANNING MR SCHREYER WASN'T AVAILABLE FOR COMMENT THE BULGING PAY PACKAGES AT MERRILL SIGNAL THAT 1992 WILL BE ANOTHER ROLLICKING YEAR FOR WALL STREET EXECUTIVE COMPENSATION THE NATION'S SECURITIES FIRMS HAD PRETAX PROFIT OF 618 BILLION LAST YEAR TOPPING THE PRIOR YEAR'S EARNINGS RECORD OF 585 BILLION BUOYING WALL STREET'S PROFITS LAST YEAR WERE HEAVY TRADING BY INDIVIDUAL INVESTORS AND A RECORD SURGE IN NEW STOCK AND BOND ISSUES UNDERWRITTEN BY WALL STREET FIRMS FOR CORPORATE CLIENTS THE BROKERAGE INDUSTRY REACHED THE PROMISED LAND IN 1992 SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES NOTING THAT MOST SECURITIES FIRMS HAVE HAD RECORD PROFITS HIT SHAREPRICE HIGHS AND RECEIVED IMPROVED CREDIT RATINGS MR KEEFE SAID THE MANAGERS FEEL RESPONSIBLE FOR IT ALL AND I IMAGINE THEY'LL BE PAID ACCORDINGLY MERRILL'S 1992 PAYOUTS FELL SHORT OF THOSE AT BEAR STEARNS COS WHERE CHAIRMAN ALAN ACE GREENBERG MADE 158 MILLION IN CASH COMPENSATION FOR THE COMPANY'S FISCAL 1992 YEAR ENDED JUNE STILL THE MERRILL PAY PACKAGES ARE AMONG THE MOST LAVISH IN RECENT YEARS ON WALL STREET A BIG REASON MERRILL'S RECORD 1992 PRETAX PROFIT OF 16 BILLION INDEED MERRILL'S 1992 NET INCOME OF 894 MILLION IS THE HIGHEST EVER FOR A PUBLICLY TRADED US SECURITIES CONCERN THE 1992 PAY PACKAGES OF MESSRS SCHREYER AND TULLY EACH INCLUDE RESTRICTED STOCK CURRENTLY VALUED AT ABOUT 12 MILLION AS WELL AS OPTIONS ON 72250 MERRILL SHARES WHICH CAN BE EXERCISED OVER FOUR YEARS AT A PRICE OF 67625 A SHARE MERRILL CURRENTLY VALUES THE STOCK OPTIONS AT ABOUT 14 MILLION MERRILL SAYS IT ORIGINALLY ALLOCATED A TOTAL OF 22 MILLION EACH TO MR SCHREYER AND MR TULLY IN RESTRICTED STOCK AND MERRILL STOCK OPTIONS BASED ON AN AVERAGE DECEMBER 1992 STOCK PRICE OF 6090 A SHARE BUT THOSE RESTRICTED SHARES AND STOCK OPTIONS HAVE RISEN IN PRICE ALONG WITH MERRILL'S STOCK AND WERE VALUED AT ABOUT 26 MILLION WHEN THEY WERE GRANTED EARLIER THIS YEAR IN ADDITION TO MESSRS SCHREYER AND TULLY SEVERAL OTHER SENIOR MERRILL OFFICIALS RECEIVED HEFTY PAY PACKAGES MERRILL EXECUTIVE VICE PRESIDENTS JOHN STEFFENS DAVID KOMANSKY AND HERBERT ALLISON RECEIVED 1992 CASH COMPENSATION OF 35 MILLION 345 MILLION AND 33 MILLION RESPECTIVELY 11 38 AND 32 HIGHER THAN THEIR 1991 CASH PAY WITH RESTRICTED SHARES AND MERRILL OPTIONS THE TOTAL 1992 PAY PACKAGES OF MESSRS STEFFENS KOMANSKY AND ALLISON CURRENTLY ARE VALUED AT ABOUT 51 MILLION 5 MILLION AND 47 MILLION RESPECTIVELY MERRILL SAYS THE HEFTY PAY PACKAGES ARE JUSTIFIED OVER THE PAST FIVE YEARS MERRILL NOTES ITS SHARE PRICE HAS FAR OUTPERFORMED VARIOUS STOCK INDICES INCLUDING THE S&P 500STOCK INDEX AND A GROUP OF 10 SECURITIESINDUSTRY COMPETITORS THE MARKET SETS THESE PRICES THE SPOKESMAN SAYS HE ALSO CITES A CORRELATION BETWEEN MERRILL'S INCREASED PROFITABILITY AND PAY ADDING EXECUTIVE PAY DROPS DRAMATICALLY WHEN NET INCOME DOES THE PROXY DISCLOSES THAT MERRILL'S FIVE TOP EXECUTIVES HAVE ACCUMULATED A HUGE HOARD OF OPTIONS ON MERRILL STOCK THAT ARE BECOMING INCREASINGLY VALUABLE AT YEAR END THE PROXY SAID MR SCHREYER ALONE HELD MERRILL STOCK OPTIONS VALUED AT 255 MILLION 99 MILLION OF WHICH COULD BE CASHED IN IMMEDIATELY THIS INCLUDES OPTIONS ON 300000 MERRILL SHARES GRANTED TO MR SCHREYER IN 1991 IF THESE OPTIONS WERE ABLE TO BE CASHED IN AT MERRILL'S STOCK PRICE OF 6975 A SHARE THEY WOULD HAVE AN INDICATED VALUE OF MORE THAN 145 MILLION AT YEAR END MR TULLY HELD MERRILL OPTIONS VALUED AT 231 MILLION NEARLY 10 MILLION OF WHICH COULD CURRENTLY BE EXERCISED THIS INCLUDES OPTIONS ON 255000 MERRILL SHARES GRANTED TO MR TULLY IN 1991 IF THESE OPTIONS WERE ABLE TO BE CASHED IN AT MERRILL'S CURRENT STOCK PRICE THEY WOULD HAVE AN INDICATED VALUE OF 123 MILLION MR TULLY DIDN'T CASH IN ANY OPTIONS LAST YEAR 9303080071 930308 OIL COMPANIES' ROAD TO BURMA PROVES DEAD END HOPES FOR BIG STRIKE FADE AMID HEAVY EXPENSES TOUGH CONTRACT TERMS BY BARRY WAIN STAFF REPORTER OF THE WALL STREET JOURNAL RANGOON BURMA THREE YEARS AGO THE WORLD'S MAJOR PETROLEUM COMPANIES POURED INTO BURMA CONVINCED THERE WERE VAST DEPOSITS OF OIL ONSHORE NOW HAVING SPENT A 450 MILLION TO 500 MILLION SEARCHING FOR IT MOST ARE PULLING OUT NOT ONLY HAVE THEY NOT DISCOVERED ANYTHING APART FROM A TRACE OF GAS EXPLORATION COSTS TURNED OUT TO BE HIGHER THAN EXPECTED AND THE TOUGH TERMS DEMANDED BY THE GOVERNMENT ARE NO LONGER ATTRACTIVE ENOUGH TO KEEP THEM EXPLORING IN AN AREA OF LOWER CENTRAL BURMA THAT HAS BEEN YIELDING CRUDE SINCE THE LAST CENTURY WE THOUGHT WE WOULD EASILY FIND ADDITIONAL RESERVES SAYS CHRIS TERWOGT MANAGING DIRECTOR OF MYANMAR SHELL BV A WHOLLY OWNED SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP COLLECTIVELY THE OIL INDUSTRY OVERESTIMATED THE PROSPECTIVITY OF THE AREA MYANMAR IS THE OFFICIAL NAME FOR BURMA DECREED BY ITS MILITARY RULERS FOR RANGOON NOW DESIGNATED YANGON ALL ISN'T LOST THE ONLY FOREIGN COMPANY TO EXPLORE OFFSHORE HAS MADE A PROMISING DISCOVERY IN ADDITION ANOTHER INTERNATIONAL COMPANY HAS SIGNED A CONTRACT POTENTIALLY VALUED AT 800 MILLION TO TEST THE VIABILITY OF DEVELOPING A KNOWN OFFSHORE GAS FIELD BY BUILDING A PIPELINE TO NEIGHBORING THAILAND YOU'RE GOING TO SEE A MAJOR SHIFT OFFSHORE SAYS AN INDUSTRY OFFICIAL THAT WILL BE POSITIVE FOR BURMA ACCORDING TO THE US COMMERCE DEPARTMENT BURMA'S ENERGY SECTOR SCORED SOME MINOR ACHIEVEMENTS IN THE YEAR ENDED MARCH 31 1992 DESPITE THE FAILURE OF FOREIGN COMPANIES TO STRIKE OIL THE GOVERNMENT WAS ABLE TO ARREST A SLIDE IN THE PRODUCTION OF CRUDE BY TAPPING TWO NEW WELLS THOUGH DETERIORATION OF OLD WELLS KEPT THE OVERALL INCREASE MODEST OUTPUT TOTALED 57 MILLION BARRELS UP 400000 BARRELS FROM A YEAR EARLIER ONCE ENERGY SELFSUFFICIENT BURMA IS NOW IMPORTING AT LEAST 500 TONS OF CRUDE OIL OR 3150 BARRELS ANNUALLY THE DEPARTMENT SAYS IN A REPORT PREPARED BY THE US EMBASSY IN RANGOON FOREIGN COMPANIES HAD BEEN KEEN TO RETURN TO BURMA SINCE THE MILITARY REGIME OF GEN NE WIN SEIZED POWER IN 1962 AND NATIONALIZED ALL BUSINESS INCLUDING BRITISHOWNED BURMAH OIL CO LOCATED AT THE END OF A VOLCANIC ARC THAT STARTS IN INDONESIA BURMA HAS BEEN PRODUCING OIL SINCE THE LATE 1800S STATEOWNED MYANMAR OIL & GAS ENTERPRISE AS BURMAH OIL IS NOW KNOWN CONTINUED TO MAKE DISCOVERIES AFTER NATIONALIZATION DESPITE AGING EQUIPMENT AND LIMITED EXPERTISE FOREIGN COMPANIES FIGURED THAT WITH THEIR SUPERIOR TECHNOLOGY AND KNOWHOW THEY MIGHT HIT THE JACKPOT THE MILITARY JUNTA CALLING ITSELF THE STATE LAW AND ORDER RESTORATION COUNCIL TOOK OVER IN 1988 AND INVITED THE COMPANIES TO BID AS PART OF PLANS TO OPEN THE COUNTRY AND SWITCH FROM CENTRAL PLANNING TO A MARKET ECONOMY THE COUNCIL ALSO WAS WORRIED THAT OIL OUTPUT HAD BEEN DROPPING STEADILY SINCE 1980 TEN INTERNATIONAL COMPANIES REACHED AGREEMENT IN LATE 1989 AND EARLY 1990 CONFIDENT OF THEIR PROSPECTS WE SIGNED ONE OF THE TOUGHEST PRODUCTIONSHARING CONTRACTS IN THE WORLD SAYS ONE EXECUTIVE EACH PAID A SIGNATURE BONUS OF ABOUT 5 MILLION AND AGREED TO COMMIT ADDITIONAL AMOUNTS TO THE SEARCH COSTS WERE MUCH HIGHER THAN ANTICIPATED WITH MOST COMPANIES RUNNING OVER BUDGET FOR A START OPERATORS HAD TO IMPORT RIGS AND OIL SERVICE EQUIPMENT A FEW ALSO HAD TO USE EXPENSIVE HELICOPTERS TO COPE WITH REMOTE LOCATIONS AND RUGGED TERRAIN IN ADDITION MANY WELLS HAD TO BE SIDETRACKED INDUSTRY JARGON FOR DRILLING AROUND PARTICULARLY HARD ROCK ONE COMPANY WAS UNABLE TO COMPLETE ITS PROGRAM BECAUSE ETHNIC INSURGENTS MADE SECURITY PROBLEMATIC OTHER POLITICAL PROBLEMS LOOMED WHEN THE MILITARY COUNCIL'S GENERALS REFUSED TO HAND OVER THE REINS OF GOVERNMENT TO CIVILIANS ELECTED IN THE 1990 PARLIAMENTARY POLL FOREIGN INVESTORS CAME UNDER PRESSURE FROM ACTIVISTS IN THEIR HOME COUNTRIES TO WITHDRAW FROM BURMA ABOVE ALL THE WELLS WERE DRY EXCEPT FOR A MARGINAL GAS RESERVE THAT SHELL FOUND EARLY LAST YEAR SIX OF THE 10 OPERATORS HAVE EITHER PULLED OUT OR ANNOUNCED PLANS TO DO SO SOME AFTER FAILING TO REACH AGREEMENT WITH THE GOVERNMENT TO CONTINUE EXPLORING OTHERS ARE STILL NEGOTIATING THOUGH OFFICIALS SAY THE GOVERNMENT DOESN'T SEEM PREPARED TO OFFER TERMS GENEROUS ENOUGH TO KEEP THEIR PROGRAMS ALIVE 9303080070 930308 BUSINESS BRIEF TNT FREIGHTWAYS CORP TRUCKING FIRM TO BUY BACK ITS SHARES FROM TNT LTD TNT FREIGHTWAYS CORP SAID IT ENTERED A DEFINITIVE AGREEMENT TO PURCHASE THE 3686218 OF ITS COMMON SHARES HELD BY TNT LTD FOR 19 A SHARE THE TRANSACTION VALUED AT ABOUT 70 MILLION IS SET TO OCCUR BY MARCH 10 AND ACCOUNTS FOR ALL THE TNT FREIGHTWAYS STOCK OWNED BY TNT LTD A GENERAL AND EXPRESS FREIGHT OPERATOR BASED IN AUSTRALIA THE SHARES REPRESENT 20 OF THE ROSEMONT ILL TRUCKING CONCERN'S 144 MILLION SHARES OUTSTANDING IN OVERTHECOUNTER TRADING FRIDAY TNT FREIGHTWAYS' SHARES FELL 25 CENTS TO 1975 TNT FREIGHTWAYS SAID IT WILL FUND THE PURCHASE THROUGH ITS REVOLVING CREDIT FACILITY WHICH IT RECENTLY INCREASED TO 160 MILLION FROM 120 MILLION 9303080069 930308 TECHNOLOGY LAB CONFIRMS IT SELECTED UK SUPERCOMPUTER FIRM LIVERMORE CALIF LAWRENCE LIVERMORE NATIONAL LABORATORY CONFIRMED THAT IT PICKED A SMALL BRITISHOWNED FIRM EARLIER THIS YEAR TO PROVIDE THE LAB WITH A NEW SUPERCOMPUTER RAISING COMPLAINTS AMONG ITS US COMPETITORS BUT A SPOKESMAN FOR THE LAB SAID THAT THE MACHINE IN QUESTION HASN'T BEEN ORDERED YET AND THAT ANY FORMAL CONTRACT WOULD STILL HAVE TO PASS REVIEW BY THE DEPARTMENT OF ENERGY WHICH AMONG OTHER THINGS WILL ASSESS THE DEGREE OF FOREIGN OWNERSHIP BEFORE APPROVING A SALE DAVID SCHWOEGLER THE SPOKESMAN SAID THAT COMPUTER MAKER MEIKO SCIENTIFIC CORP OF WALTHAM MASS IS AN AMERICAN COMPANY AND ITS PRODUCTS ARE SUBSTANTIALLY DESIGNED AND BUILT IN THE US HE SAID ITS PARENT MEIKO WORLD INC IS OWNED BY BRITISH INVESTORS MR SCHWOEGLER DECLINED TO PROVIDE FURTHER DETAILS EXCEPT TO SAY THAT SEVERAL OTHER FIRMS HAD BEEN CONSIDERED HE ALSO WOULDN'T SAY WHETHER PRICE OR TECHNOLOGY HAD BEEN THE DECIDING FACTORS IN THE BIDDING THE MEIKO SUPERCOMPUTER IS PRICED AT 15 MILLION THE NEW YORK TIMES SAID IN A REPORT LAST WEEK MEIKO EXECUTIVES COULDN'T BE REACHED FOR COMMENT YESTERDAY 9303080067 930308 HONDA MOTOR SEES STRENGTH IN YEN HURTING ITS SALES SPECIAL TO THE WALL STREET JOURNAL TOKYO A STRONGER YEN WILL SHAVE 34 OFF HONDA MOTOR CO'S SALES DURING THE COMING FISCAL YEAR AND WEAK MARKET CONDITIONS WILL STOP THE JAPANESE COMPANY FROM COVERING THE LOSS BY RAISING CAR PRICES A HONDA OFFICIAL SAID TAKASHI MATSUDA HONDA'S MANAGING DIRECTOR IN CHARGE OF FINANCE SAID SOFT AUTO MARKET CONDITIONS WILL LIMIT ANY POTENTIAL PRICE BOOSTS DURING THE FISCAL YEAR STARTING APRIL 1 TO AROUND 1 THE YEN'S RISE IN CURRENCY MARKETS MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND LOWERS THE VALUE OF OVERSEAS EARNINGS WHEN TRANSLATED INTO YEN TERMS MR MATSUDA SAID THE DOLLAR IS LIKELY TO AVERAGE BETWEEN 115 YEN AND UNDER 120 YEN DURING THE COMING FISCAL YEAR DOWN FROM AN AVERAGE OF 125 YEN FOR THE CURRENT YEAR BUT THE HONDA OFFICIAL WHO SPOKE WITH A REPORTER WEDNESDAY WHEN THE DOLLAR WAS TRADING JUST BELOW 119 YEN SAID THE COMPANY ISN'T RUSHING TO LOCK IN THE US CURRENCY AROUND 117118 YEN MR MATSUDA SAID THE COMPANY WILL LOOK TO ENTER THE FORWARD CURRENCY MARKET WHEN THE DOLLAR MOVES TO AROUND 120 YEN MR MATSUDA SAID HONDA WILL CONTINUE TO BOOST THE LOCAL CONTENT OF ITS OVERSEAS PRODUCTION AS A MEANS OF GUARDING AGAINST FOREIGNEXCHANGE RISK AT PRESENT THE LOCAL CONTENT OF HONDA'S US PRODUCTION IS ROUGHLY 75 THE OFFICIAL SAID HIS COMPANY ISN'T PLANNING TO BOOST THE NUMBER OF USMADE HONDAS SOLD IN JAPAN THE NUMBER OF US 'REVERSE IMPORT' SALES IN JAPAN DURING THE COMING FISCAL YEAR SHOULD BE AROUND 20000 LITTLE CHANGED FROM THE CURRENT FISCAL YEAR SEPARATELY HONDA'S CONSOLIDATED CAPITAL OUTLAYS FOR THE CURRENT FISCAL YEAR WILL COME TO 170 BILLION YEN 146 BILLION DOWN 81 FROM THE COMPANY'S PREVIOUS ESTIMATE OF 185 BILLION YEN MR MATSUDA SAID HE SAID CAPITAL OUTLAYS FOR THE COMING FISCAL YEAR BEGINNING APRIL 1 ARE LIKELY TO REMAIN AT ROUGHLY 170 BILLION YEN MR MATSUDA SAID THE COMPANY'S CAPITAL OUTLAY PLANS ALREADY TAKE INTO ACCOUNT NEEDED EXPENDITURES FOR EQUIPMENT TO MAKE NEWVEHICLE MODELS OVER THE COMING YEAR HONDA IS USING LOANS FROM BANKS AND FUNDS ON HAND TO PAY FOR 80 BILLION YEN OF EQUITY WARRANT BONDS MATURING THIS MONTH MOREOVER WHILE BANKS ARE EAGER TO LEND AND INTEREST RATES ARE SUFFICIENTLY LOW HONDA CURRENTLY HAS NO PLANS TO RAISE FUNDS IN THE CAPITAL MARKETS MR MATSUDA SAID HONDA BORROWED 40 BILLION YEN FROM MITSUBISHI BANK AND OTHER DOMESTIC BANKS TO REFINANCE EXPIRING PAPER WITH THE BALANCE OF THE MATURING BONDS TO BE PAID FROM THE COMPANY'S OWN FUNDS HE ADDED AFTER THIS MONTH'S MATURATION HONDA WON'T HAVE ANY MORE EQUITYLINKED BONDS OUTSTANDING 9303080066 930308 INTERNATIONAL BRAZILIAN OFFICIAL RESIGNS TOP POST IN PRIVATIZATIONS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO IN THE LATEST SIGN OF DISARRAY IN THE GOVERNMENT OF PRESIDENT ITAMAR FRANCO THE HEAD OF BRAZIL'S ADVISORY BODY ON PRIVATIZATIONS RESIGNED FRIDAY AND TOOK A PARTING SHOT AT THE GOVERNMENT'S INCOMPETENCE BY RESIGNING THE PRESIDENCY OF THE NATIONAL DEVELOPMENT BANK ANTONIO BARROS DE CASTRO BECAME THE THIRD TOP MEMBER OF MR FRANCO'S ECONOMIC TEAM TO LEAVE IN LESS THAN A WEEK EARLIER LAST WEEK FINANCE MINISTER PAULO HADDAD AND CENTRAL BANK PRESIDENT GUSTAVO LOYOLA RESIGNED AFTER CLASHING WITH MR FRANCO ELISEU RESENDE WAS APPOINTED MR FRANCO'S THIRD FINANCE MINISTER IN FIVE MONTHS BUT NO SUCCESSORS HAVE BEEN NAMED FOR MR LOYOLA OR MR BARROS DE CASTRO THE RESIGNATIONS HIGHLIGHT THE CONFUSION REIGNING IN THE ECONOMY OF THE THIRD WORLD'S LARGEST DEBTOR AS IT MUDDLES THROUGH INFLATION OF 28 A MONTH A DEEP RECESSION AND GAPING DEFICITS WITHOUT A CLEAR ECONOMIC PLAN THEY ALSO REFLECT RAPIDLY DECLINING SUPPORT FOR THE TEMPERAMENTAL POPULIST MR FRANCO WHO IS UNDER INCREASING FIRE FOR FAILING TO TAKE CHARGE SINCE HE CAME TO POWER FIVE MONTHS AGO FOLLOWING FERNANDO COLLOR DE MELLO'S OUSTER ON CORRUPTION CHARGES STOCK MARKETS FRIDAY REFLECTED THESE DOUBTS FALLING 37 IN SAO PAULO AND 24 IN RIO SEEKING TO COUNTER THE EFFECTS OF MR BARROS DE CASTRO'S RESIGNATION THE COMMISSION OVERSEEING BRAZIL'S PRIVATIZATION PROGRAM WHICH MR FRANCO SUSPENDED IN DECEMBER SAID IT WOULD RESUME AS PLANNED ON MARCH 19 WITH THE SALE OF THE STATE'S MINORITY STAKE IN PETROCHEMICAL COMPANY POLIOLEFINAS BUT AS BIDDING CONDITIONS WON'T BE ANNOUNCED UNTIL MARCH 11 MANY BANKERS DOUBT BUYERS WILL HAVE TIME TO PREPARE FOR THE SALE THE COMMISSION ALSO MOVED FORWARD THE SALE OF STEELMAKER COMPANHIA SIDERURGICA NACIONAL TO APRIL 2 FROM APRIL 5 BUT THE SALE OF PETROQUIMICA UNIAO PLANNED FOR MARCH 26 HAS BEEN POSTPONED BECAUSE OF A DISPUTE WITH MINORITY SHAREHOLDERS IT'S ALSO UNCLEAR IF FERTILIZER MAKER ULTRAFERTIL SLATED TO BE FLOATED ON APRIL 12 WILL BE SOLD IN AN UNUSUALLY BLISTERING RESIGNATION LETTER MR BARROS DE CASTRO CHARGED THAT AIDES OF MR FRANCO UNDERMINED THE PRIVATIZATION PROGRAM THROUGH RULE CHANGES THAT CAUSED UNNECESSARY DELAYS MR BARROS DE CASTRO'S LETTER WAS PARTICULARLY CRITICAL OF THE IMPROPRIETY AND INCOMPETENCE OF TWO PRESIDENTIAL DECREES ADOPTED IN JANUARY DRAWN UP BY MR FRANCO'S TOP ADVISER JOSE DE CASTRO FERREIRA THE FIRST REMOVED MANAGEMENT OF THE PRIVATIZATION PROGRAM FROM THE NATIONAL DEVELOPMENT BANK WHICH RETAINS AN ADVISORY ROLE AND PLACED IT IN THE HANDS OF A GOVERNMENTAPPOINTED COMMISSION THE SECOND PROHIBITS PENSION FUNDS OF STATEOWNED COMPANIES FROM PARTICIPATING IN SELLOFFS AND GIVES MR FRANCO FINAL SAY ON THE MINIMUM PRICE OF COMPANIES SOLD AND THE PROPORTION OF CASH AND DEBT PAPER IN EACH SALE BANKERS AND ANALYSTS HAD MIXED FEELINGS ABOUT THE RESIGNATION OF MR BARROS DE CASTRO WHOM THEY CRITICIZE FOR A WEAK PERFORMANCE AT THE HELM OF THE NATIONAL DEVELOPMENT BANK BUT MANY FEEL THE STRING OF RESIGNATIONS SHOWS A WORRISOME DRIFT IN GOVERNMENT THAT COULD TURN INTO A CRISIS OF CONFIDENCE FOR MR FRANCO FIRING SOMEONE IN NORMAL CIRCUMSTANCES IS NO BIG DEAL SAYS POLITICALRISK ANALYST ALEXANDRE BARROS BUT IN THE CURRENT CONTEXT OF UNCERTAINTY THE EFFECT IS DEVASTATING 9303080065 930308 BUSINESS BRIEF FIRST VIRGINIA BANKS INC BANK HOLDING CONCERN PLANS TO ACQUIRE UNITED SOUTHERN FIRST VIRGINIA BANKS INC SAID IT PLANS TO ACQUIRE UNITED SOUTHERN BANK IN TENNESSEE THE AGREEMENT CALLS FOR UNITED SOUTHERN'S SHAREHOLDERS TO RECEIVE 17 FIRST VIRGINIA COMMON SHARES FOR EACH OF UNITED SOUTHERN'S 115694 SHARES OUTSTANDING THE TRANSACTION IS VALUED AT ABOUT 78 MILLION BASED ON FIRST VIRGINIA'S CLOSING PRICE FRIDAY OF 3950 ON THE NEW YORK STOCK EXCHANGE UNITED SOUTHERN BANK WILL RETAIN ITS NAME AND JOHN MCGUFFIN WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER APPROVAL OF THE ACQUISTION BY UNITED SOUTHERN SHAREHOLDERS IS EXPECTED BY THE THIRD QUARTER OF 1993 UNITED SOUTHERN HAS THREE BANKS IN MORRISTOWN TENN WITH 43 MILLION IN ASSETS FIRST VIRGINIA OF FALLS CHURCH VA IS A 68 BILLION BANK HOLDING COMPANY 9303080064 930308 CREDIT RATINGS CHIQUITA BRANDS INTERNATIONAL INC STANDARD & POOR'S CORP SAID IT PLACED 875 MILLION OF CHIQUITA'S SUBORDINATED DEBT ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS THE RATING SERVICE CITED THE COMPANY'S 1992 EARNINGS REPORT WHICH WAS RELEASED THURSDAY AND WHICH INCLUDED 613 MILLION IN RESTRUCTURING CHARGES 41 MILLION IN LOSSES FROM DISCONTINUED OPERATIONS AND AN OVERALL LOSS OF 284 MILLION OR 548 A SHARE SUCH LOSSES WILL SIGNIFICANTLY IMPACT THE COMPANY'S BALANCE SHEET S&P SAID CHIQUITA OFFICIALS DIDN'T RETURN CALLS REQUESTING COMMENT FRIDAY S&P ALSO CITED A CONTINUED DIFFICULT OPERATING ENVIRONMENT IN CHIQUITA'S CORE BANANA BUSINESS BUT SAID BANANA PRICES HAVE STRENGTHENED WHICH COULD LEAD TO IMPROVED RESULTS IN 1993 THE SUBORDINATED DEBT IS CURRENTLY RATED DOUBLEBMINUS COASTAL CORP HOUSTON MOODY'S INVESTORS SERVICE INC AFFIRMED ITS RATINGS ON 35 BILLION OF THIS ENERGY COMPANY'S LONGTERM DEBT THE RATINGS AGENCY SAID COASTAL IMPROVED ITS OPERATING POSITION IN REFINING AND PROGRESSED IN ITS DEBTREDUCTION PROGRAM COASTAL SAID IT WOULD REDUCE DEBT TO 60 OF CAPITAL BY 1995 ACCORDING TO MOODY'S EXCESS CASH FLOW OVER CAPITAL EXPENDITURES AND CASH FROM INVENTORY REDUCTIONS ARE EXPECTED TO HELP AS WELL AS A PLANNED SALE OF PREFERRED STOCK RATINGS CONFIRMED INCLUDE BAA3 RATING ON COASTAL DEBENTURES NOTES AND EUROBONDS P BAA3 RATING ON THE COMPANY'S SHELF REGISTRATION BA1 RATING ON SENIOR SUBORDINATED NOTES BAA2 RATING ON ANR PIPELINE CO FIRST MORTGAGE BONDS DEBENTURES AND EUROBONDS AND BAA2 RATING ON COLORADO INTERSTATE GAS CO DEBENTURES ANR PIPELINE AND COLORADO INTERSTATE ARE UNITS OF COASTAL NEW YORK STATE STANDARD & POOR'S CORP AFFIRMED ITS RATINGS ON NEW YORK STATE'S 51 BILLION IN GENERALOBLIGATION BONDS AND GAVE THE SAME RATING TO A NEW 2084 MILLION ISSUE OF THE BONDS THE AFFIRMATION OF THE SINGLEAMINUS RATING REFLECTS THE FACT THAT THE STATE IS EXPECTING AN OPERATING SURPLUS FOR THE FIRST TIME IN SIX YEARS S&P SAID THE EXPECTED SURPLUS IS 483 MILLION FOR THE 1993 FISCAL YEAR ENDING MARCH 31 S&P SAID HOWEVER THAT THE RATING ALSO REFLECTS THE STATE'S SHRINKING ECONOMIC BASE ITS MANAGEABLE YET RISING DEBT AND ITS HISTORICALLY WEAK FINANCIAL PERFORMANCE THE RATING AGENCY SAID ITS CURRENTLY NEGATIVE RATINGS OUTLOOK FOR NEW YORK'S BONDS COULD BE REVISED TO STABLE IF THE STATE ENDS FISCAL 1993 AS EXPECTED PASSES ITS FISCAL 1994 BUDGET ON TIME AND BASES THE NEW BUDGET ON REALISTIC PROJECTIONS SALOMON INC NEW YORK STANDARD & POOR'S CORP SAID IT PLACED DEBT RATINGS OF SALOMON ON ITS CREDITWATCH LIST FOR A POSSIBLE DOWNGRADE IN VIEW OF THE COMPANY'S ANNOUNCEMENT OF A 250 MILLION PRETAX OPERATING LOSS FOR THE FIRST TWO MONTHS OF 1993 S&P RATES SALOMON'S SENIOR DEBT SINGLEA AND SUBORDINATED DEBT SINGLEAMINUS ALTHOUGH THE INVESTMENT BANKING COMPANY HAD RECORD PROFIT IN 1992 S&P SAID THE PATTERN OF QUARTERLY EARNINGS HAS BEEN INCREASINGLY VOLATILE REFLECTING SALOMON'S RELIANCE ON PROPRIETARY TRADING ACTIVITIES THE RATINGS AGENCY SAID SALOMON'S BALANCE SHEET OF MORE THAN 150 BILLION CONTINUES TO BE EXTREMELY LIQUID AND THE COMPANY'S DEPENDENCE ON SHORTTERM UNSECURED FUNDING WAS SUBSTANTIALLY REDUCED IN 1992 ADDITIONALLY THE OPERATING LOSS WHILE SIZABLE DOES NOT HAVE A MAJOR IMPACT ON SALOMON'S EQUITY CAPITAL BASE WHICH EXCEEDS 4 BILLION 9303080063 930308 BUSINESS BRIEF PHILIPPINE NATIONAL OIL CO OIL CONCERN BUYS 88 STAKE IN CORON OFFSHORE PROSPECT STATEOWNED PHILIPPINE NATIONAL OIL CO HAS INTENSIFIED ITS PARTICIPATION IN OIL EXPLORATION IN THE COUNTRY BUYING AN 88 STAKE IN THE CORON PROSPECT OFFSHORE IN THE SOUTHWESTERN PHILIPPINES ACCORDING TO PNOC PRESIDENT MONICO JACOB THE COMPANY PAID 1760000 FOR THE STAKE THE CORON PROSPECT IS THE FIRST OFFSHORE EXPLORATION OF PNOC MOST OF ITS EXPLORATIONS HAVE BEEN CONCENTRATED ONSHORE THE OPERATOR OF THE CORON PROSPECT WHICH IS PART OF SERVICE CONTRACT NO 39 IS FLETCHER CHALLENGE LTD OF NEW ZEALAND THE OTHER MEMBERS OF THE DRILLING CONSORTIUM ARE BRITAIN'S KIRKLAND RESOURCES HOLDINGS PLC ORIENTAL PETROLEUM & MINERALS CORP BALABAC OIL EXPLORATION & DRILLING CO AND BASIC PETROLEUM & MINERALS INC THE DRILLING OF THE FIRST WELL OF THE CORON PROSPECT STARTED LAST MONTH IF ESTIMATES ARE CORRECT ITS RECOVERABLE RESERVES CAN RANGE FROM A LOW OF 61 MILLION BARRELS TO A HIGH OF 204 MILLION BARRELS OF OIL ACCORDING TO THE DEPARTMENT OF ENERGY 9303080062 930308 INTERNATIONAL WASHINGTON INSIGHT AS EL SALVADOR TRIES TO MOVE FORWARD IT SEES THREAT IN THE GHOSTS OF THE PAST BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EL SALVADOR SOON MUST DECIDE WHETHER THE BEST WAY TO HEAL THE WOUNDS OF ITS BRUTAL CIVIL WAR IS TO EXAMINE THE PAST OR CONCENTRATE ON THE FUTURE NEXT WEEK AN INTERNATIONAL TRUTH COMMISSION ESTABLISHED BY THE UNITED NATIONS IS TO ISSUE A REPORT DETAILING THE MOST EGREGIOUS ACTS OF VIOLENCE COMMITTED BY BOTH THE GOVERNMENT AND MARXIST GUERRILLAS DURING THEIR 12YEAR CONFLICT THE REPORT IS SUPPOSED TO NAME THOSE RESPONSIBLE FOR THE ACTS EL SALVADOR'S PRESIDENT ALFREDO CRISTIANI AND SOME GUERRILLA LEADERS WANT THE COMMISSION TO PUT OFF PUBLISHING THE NAMES SAYING THAT WILL ONLY INFLAME PASSIONS AND JEOPARDIZE THE YEAROLD EFFORT TO RECONSTRUCT SALVADORAN SOCIETY SO FAR THE EL SALVADOR PEACE AGREEMENT REACHED IN JANUARY 1992 HAS YIELDED SIGNIFICANT SUCCESS A CEASEFIRE HAS HELD GUERRILLA UNITS HAVE DISARMED AND THE GOVERNMENT HAS SHARPLY REDUCED THE SIZE OF THE ARMED FORCES PUT ITS INTELLIGENCE SERVICES UNDER CIVILIAN CONTROL AND BEGUN CREATING A NEW NATIONAL POLICE FORCE THAT INCLUDES FORMER GUERRILLAS PLANS FOR JUDICIAL REFORM AND LAND REDISTRIBUTION ALSO ARE UNDER WAY BUT NOW THE PEACE PROCESS IS ENTERING A VERY DANGEROUS PHASE SAYS REP ROBERT TORRICELLI A NEW JERSEY DEMOCRAT WHO HEADS THE HOUSE SUBCOMMITTEE ON WESTERN HEMISPHERE AFFAIRS THIS WILL TEST THE NATIONAL RESOLVE TO CONTINUE THE PROCESS OF NATIONAL RECONCILIATION SUCCESS OR FAILURE IN EL SALVADOR WILL HAVE CONSEQUENCES BEYOND THE AREA IN OTHER FORMER COLD WAR HOT SPOTS SUCH AS ANGOLA AND CAMBODIA PEACE EFFORTS HAVEN'T SUCCEEDED IN PART BECAUSE PLANS TO HOLD ELECTIONS CAME BEFORE EFFORTS AT NATIONAL RECONCILIATION THE TRUTH COMMISSION IS PART OF A UNIQUE EXPERIMENT THAT COULD SET A PRECEDENT FOR RESOLVING DISPUTES BOTH SIDES IN THE SALVADORAN CIVIL WAR AGREED DURING NEGOTIATIONS TO LET A UNAPPOINTED INTERNATIONAL COMMISSION DELVE INTO THE DARKEST EPISODES OF THE CONFLICT WHICH CLAIMED 75000 LIVES IN A COUNTRY OF ONLY FIVE MILLION PEOPLE IF YOU DON'T END THE CONFLICT WITH SOME KIND OF CREDIBLE STATEMENT OF WHAT HAPPENED I DON'T THINK YOU CAN EVER HAVE THE BASIS FOR RECONCILIATION SAYS THOMAS BUERGENTHAL ONE OF THE THREE MEMBERS OF THE TRUTH COMMISSION AND A SURVIVOR OF THE NAZIERA AUSCHWITZ DEATH CAMP AS DEMOCRACY SWEPT LATIN AMERICA DURING THE PAST DECADE EFFORTS BY GOVERNMENTS TO EXPLORE THE PAST ON THEIR OWN HAVE PRODUCED MIXED RESULTS IN ARGENTINA MILITARY OFFICERS WERE PUT ON TRIAL TO DETERMINE WHO WAS RESPONSIBLE FOR THE MURDER OF THOUSANDS OF CIVILIANS DURING MILITARY RULE SOME OFFICERS WERE JAILED BUT ARGENTINE PRESIDENT CARLOS MENEM ISSUED A CONTROVERSIAL PARDON IN OCTOBER 1989 URUGUAY HELD A NATIONAL PLEBISCITE AND DECIDED THAT EXAMINING THE PAST WOULD ENDANGER THE TRANSITION TO DEMOCRACY CHILE FORMED A COMMISSION TO STUDY THE ABUSES OF THE PINOCHET ERA BUT HASN'T PURGED ANY MILITARY OFFICERS NICARAGUA WHICH VOTED OUT THE LEFTIST SANDINISTA REGIME IN 1990 HASN'T MADE ANY EFFORT TO REDRESS PAST ABUSES THE INACTION THERE HAS PRODUCED INSTABILITY THAT HAS DISCOURAGED FOREIGN INVESTMENT AND HAMPERED PROGRESS SALVADORAN PRESIDENT CRISTIANI AND GUERRILLA LEADERS HAVE SHOWN A REMARKABLE ABILITY IN THE PAST YEAR TO WORK OUT THE DIFFERENCES THAT HAVE ARISEN AS THEY PUT THE PEACE PLAN INTO EFFECT BUT PUBLICATION OF THE TRUTH COMMISSION REPORT WILL ONCE AGAIN FOCUS ATTENTION ON THE PAST CINDY BUHL LEGISLATIVE CONSULTANT AT THE CENTRAL AMERICA WORKING GROUP A HUMANRIGHTS MONITORING ORGANIZATION BELIEVES THAT THE COMMISSION WHICH HAS TWICE POSTPONED ITS REPORT SHOULD PUBLISH IT ALONG WITH THE LIST OF CULPRITS NEXT WEEK THIS NEEDS TO BE CARRIED OUT THE WAY IT WAS ENVISIONED IN THE PEACE AGREEMENT I CAN'T HELP IT IF IT'S GOTTEN A LITTLE HOT IN THE KITCHEN RIGHT NOW SHE SAYS BUT DOUGLAS PAYNE DIRECTOR OF HEMISPHERIC STUDIES AT FREEDOM HOUSE A PRIVATE GROUP SAYS SALVADORANS SHOULD BE LEFT TO WORK OUT THE SOLUTION THEMSELVES EVEN THOUGH IT IS DIFFICULT TO STRIKE A BALANCE BETWEEN LOOKING BACK AND MOVING TOWARD DEMOCRACY THE LONGTERM GOAL OF CONSOLIDATING DEMOCRACY IS IMPORTANT AT THE SAME TIME IF THERE ISN'T JUSTICE FOR VIOLATIONS OF THE PAST ISN'T THAT SAYING THAT IN THE FUTURE BAD GUYS WHO DO BAD THINGS ALSO WON'T BE HELD ACCOUNTABLE 9303080061 930308 PATTER OF LITTLE FEET BEGINS TO REVERBERATE IN THE HALLS OF POWER NEW OFFICIALS WITH CHILDREN BRING A FRESH PERSPECTIVE TO FAMILY POLICY MAKING BY CATHY TROST STAFF REPORTER OF THE WALL STREET JOURNAL ON CAPITOL HILL WHEN ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER 37 YEARS OLD BROUGHT HER FIVEYEAROLD SON ZACHARY TO HER SENATE CONFIRMATION HEARING 75YEAROLD OHIO SEN HOWARD METZENBAUM GALLANTLY OFFERED TO MIND HIM NEW SEN PATTY MURRAY A WASHINGTON DEMOCRAT DROVE TO THE CAPITOL FROM SEATTLE 12 HOURS A DAY FOR 5 1/2 DAYS WITH HER HUSBAND AND TWO CHILDREN AGES 16 AND 13 NOW THEY MEET AT HER OFFICE AFTER WORK FOR DINNER AND OFTEN A MOVIE THE BABYBOOM GENERATION HAS TAKEN THE REINS OF GOVERNMENT AND IT IS LOOKING FOR A GOOD BABY SITTER STARTING WITH THE FIRST FAMILY MANY NOW ARE WORKING COUPLES WITH YOUNG CHILDREN THEIR STRUGGLES WITH DAY CARE SCHOOLS AND DEMANDING WORK SCHEDULES FORGE A COMMON LINK WITH A GENERATION OF DUALWORKER AND SINGLEPARENT FAMILIES AND THOSE EFFORTS ALREADY ARE HELPING TO SHAPE US POLICY THE FIRST LAW MR CLINTON SIGNED AS PRESIDENT WAS A BILL ENSURING MORE TIME OFF FOR WORKING PARENTS FOR FAMILY EMERGENCIES A BILL THAT WAS VETOED TWICE BY PRESIDENT BUSH SEN MURRAY VOTED FOR THE BILL AMID MEMORIES OF HER FIRST PREGNANCY WHEN SHE HAD TO QUIT HER JOB AS AN EXECUTIVE SECRETARY BECAUSE HER EMPLOYER WOULDN'T GIVE HER TIME OFF AFTER THE BIRTH EVERYBODY TAKES THEIR PERSONAL EXPERIENCE INTO THEIR JOB SAYS MS SAGAWA WHO LEAVES HER JOB DURING THE DAY TO VISIT WITH HER INFANT AT THE NEARBY DAYCARE CENTER IT CAN'T HELP BUT FORM YOUR VIEW OF WHAT'S BEST FOR FAMILIES SHARING WORKINGFAMILY EXPERIENCES DOESN'T NECESSARILY MEAN THE GENERALLY AFFLUENT CLINTON OFFICIALS FULLY UNDERSTAND THE PRESSURES ON AVERAGE AMERICAN FAMILIES I DON'T THINK MR CLINTON REALLY GETS IT SAYS HEIDI BRENNAN 39 WHO GAVE UP A MANAGEMENTCONSULTING JOB TO STAY HOME WITH HER FOUR CHILDREN IN ARLINGTON VA SHE SAYS FAMILIES NEED A RANGE OF POLICIES FROM HELPING PARENTS TO STAY HOME WITH THEIR CHILDREN TO BETTER SERVICES FOR THOSE WHO WORK THE CLINTON GUARD HAS TO BE SURE THAT ITS WORKANDFAMILY BALANCING ACT DOESN'T JUST REFLECT THE PROBLEMS OF SAY THE WEALTHY LAWPARTNER COUPLE ON TELEVISION'S LA LAW WITHOUT ACKNOWLEDGING THE WORKINGCLASS MATES ON ROSEANNE WARNS RALPH WHITEHEAD A UNIVERSITY OF MASSACHUSETTS PROFESSOR WHO STUDIES GENERATIONAL CHANGE IT CAN EITHER BE A WALL OR A BOND HE SAYS THEY CAN ALLOW IT TO SEEM TO BE A NEW FORM OF PRIVILEGE OR THEY CAN USE IT AS EXPERIENCE THAT CONNECTS THEM TO THE DAYTODAY EXPERIENCE OF A VAST NUMBER OF WORKING PARENTS IN THIS COUNTRY BUT FROM EDUCATION TO HEALTHCARE REFORM THE NEW GUARD SAYS IT WILL BE A VOICE FOR CHANGE SEN MURRAY WHO RAN FOR CONGRESS AS A MOM IN TENNIS SHOES WANTS TO REPRESENT TWOWORKER FAMILIES LIKE HER OWN TO PRETTY MUCH EVERY PIECE OF LEGISLATION I WILL BRING THE PERSPECTIVE OF A WORKING PARENT SHE SAYS AMONG OTHER ISSUES SHE WANTS TO FOCUS ATTENTION ON LONGTERM HEALTHCARE PROBLEMS CITING HER OWN EXPERIENCE OF SIMULTANEOUSLY CARING FOR HER CHILDREN AND HER DISABLED PARENTS OF COURSE THERE ALSO WERE OFFICIALS WITH YOUNG FAMILIES IN BOTH THE BUSH AND REAGAN ADMINISTRATIONS BUT MOST OF THOSE APPOINTEES GENERALLY REFLECTED THE MATURITY AND ATTITUDES OF THE TWO OLDER PRESIDENTS WHOSE CHILDREN WERE GROWN IF A MEMBER OF THE WORLD WAR II GENERATION WAS COMING TO WASHINGTON IN WHAT WAS INVARIABLY HIS EARLY 50S HIS KIDS WERE PROBABLY OUT OF THE HOUSE SAYS PROF WHITEHEAD BUT MANY IN THE CLINTON ADMINISTRATION ARE MEMBERS OF THE BABYBOOM GENERATION WHICH TYPICALLY INCLUDES WORKING COUPLES WHO DELAYED MARRIAGE AND CHILDBEARING AND SO HAVE RELATIVELY YOUNG CHILDREN TEN TOP OFFICIALS IN THE CLINTON ADMINISTRATION HAVE CHILDREN AGES 15 OR YOUNGER PRESIDENT CLINTON VICE PRESIDENT ALBERT GORE EPA ADMINISTRATOR BROWNER COUNCIL OF ECONOMIC ADVISERS CHAIRWOMAN LAURA D'ANDREA TYSON LABOR SECRETARY ROBERT REICH INTERIOR SECRETARY BRUCE BABBITT HOUSING SECRETARY HENRY CISNEROS TRADE REPRESENTATIVE MICKEY KANTOR TRANSPORTATION SECRETARY FEDERICO PENA AND AGRICULTURE SECRETARY MIKE ESPY ONLY THREE TOP OFFICIALS IN A COMPARABLE SAMPLE OF THE EARLY BUSH ADMINISTRATION VICE PRESIDENT DAN QUAYLE SECRETARY OF STATE JAMES BAKER AND EPA CHIEF WILLIAM REILLY HAD CHILDREN THAT YOUNG TEN MEMBERS OF MR CLINTON'S CABINET ARE UNDER AGE 55 COMPARED WITH FOUR IN MR BUSH'S FIRST CABINET THE BUSH GOVERNMENT WAS ORIENTED TOWARD MARKETPLACE SOLUTIONS FOR FAMILIES SUCH AS VOUCHERS THAT PARENTS COULD APPLY TOWARD DAY CARE PRIVATE SCHOOL AND CHILDREARING EXPENSES UNDER THE NOTION THAT COMPETITION WOULD SPUR IMPROVEMENTS THE CLINTON APPROACH FAVORS MORE SPENDING ON GOVERNMENT PROGRAMS AS A LONGTERM INVESTMENT IN CHILDREN AND FAMILIES THAT WILL PAY OFF IN INCREASED JOB OPPORTUNITIES AND ECONOMIC GROWTH IN HIS ECONOMIC PLAN MR CLINTON PROPOSED INCREASED SPENDING ON AN ARRAY OF PROGRAMS FOR CHILDREN AND FAMILIES INCLUDING CHILDHOOD IMMUNIZATIONS EDUCATION INITIATIVES SUCH AS THE HEAD START PROGRAM FOR DISADVANTAGED CHILDREN A NUTRITION PROGRAM FOR PREGNANT WOMEN AND CHILDREN FEDERAL CHILDCARE GRANTS TO STATES AND PARENTING AND FAMILYSUPPORT PROGRAMS HE ALSO PROPOSED A BIGGER TAX CREDIT FOR WORKING POOR FAMILIES BUDGET REALITIES ARE ALREADY INTRUDING BUT THE FIRST FAMILY SETS THE TONE WITH PRESIDENT CLINTON 46 VOWING THAT FATHERHOOD IS STILL HIS MOST IMPORTANT JOB MRS CLINTON 45 JUGGLES HER DUTIES LEADING THE NATIONAL TASK FORCE ON HEALTHCARE REFORM WHILE SOME DAYS TAKING 13YEAROLD CHELSEA TO SCHOOL FORMER REAGAN AND BUSH ADMINISTRATION OFFICIALS REJECT THE NOTION THAT THE CLINTON ADMINISTRATION HAS THE MARKET CORNERED ON FAMILIES WE KNOW THE KINDS OF STRESSES THAT WORKANDFAMILY CONFLICTS CAN BRING SAYS DAVID DEMAREST 41 MR BUSH'S FORMER COMMUNICATIONS DIRECTOR WHO HAS A WORKING SPOUSE AND TWO YOUNG DAUGHTERS IN THE BUSH WHITE HOUSE HE TOOK OFF SOME MORNINGS TO ASSIST AT HIS DAUGHTER'S PRESCHOOL HE SAYS THE DEBATE GETS MUDDLED WHEN PRESCRIBING A CERTAIN TYPE OF POLICY BECOMES A KIND OF LITMUS TEST OVER WHETHER YOU CARE HE SAYS HE ADDS THAT JUST BECAUSE MR BUSH OPPOSED THE FAMILYLEAVE BILL DOESN'T MEAN HE DIDN'T UNDERSTAND THE PROBLEMS OF WORKING FAMILIES THE BUSH ADMINISTRATION PREFERRED OFFERING TAX CREDITS TO COMPANIES WITH VOLUNTARY FAMILYLEAVE POLICIES HE SAYS INSTEAD OF MANDATING BENEFITS THAT MIGHT STIFLE JOB GROWTH IN CONGRESS FRESHMAN REP MARJORIE MARGOLIESMEZVINSKY A PENNSYLVANIA DEMOCRAT ORGANIZED THE 24 NEW WOMEN OF THE HOUSE INTO A COALITION THAT WILL PUSH AMONG OTHER THINGS FOR MORE FUNDING FOR HEAD START WE'VE GOT TO OPEN OUR EYES AND UNDERSTAND THE REALITY THAT OUR CHILDREN FOR THE FIRST TIME AREN'T GOING TO DO BETTER THAN WE DID IF THEY INHERIT A LEGACY OF DEBT HEALTHCARE CUTBACKS AND OTHER PROBLEMS SHE SAYS SHE AND HER HUSBAND HAVE 11 CHILDREN AND DESPITE THE NEGATIVE PUBLICITY THE NANNY DRAMA INVOLVING ZOE BAIRD AND KIMBA WOOD MAY END UP BEING A LEARNING EXPERIENCE FOR THE WHITE HOUSE AND FOR LAWMAKERS IT THREW A SPOTLIGHT ON ONE OF THE MAJOR PROBLEMS FACING WORKING FAMILIES THE DIFFICULTY IN FINDING LEGAL AFFORDABLE CHILD CARE SEN MURRAY FOR EXAMPLE CONCEDES THAT THOUGH SHE NEVER HIRED AN ILLEGAL BABY SITTER WHEN HER CHILDREN WERE YOUNGER SHE LIKE MANY WORKING PARENTS DIDN'T KNOW SHE HAD TO PAY SOCIAL SECURITY TAXES FOR BABY SITTERS WHO WERE PAID MORE THAN 50 A QUARTER BEYOND POLICY MANY PARENTS HOPE THE CHANGES IN WASHINGTON WILL TRICKLE DOWN TO EMPLOYERS ACROSS THE NATION SENDING A SIGNAL THAT FAMILY SUPPORT MAKES FOR MORE PRODUCTIVE WORKERS INDEED SEN MURRAY DOESN'T JUST TALK SHE RECENTLY FILLED A SENIOR STAFF POSITION WITH A PREGNANT WOMAN WHO WILL SOON TAKE HER OWN FAMILY LEAVE ALL AROUND THE CAPITAL THE HALLS OF POWER ARE FILLED WITH THE SOUND OF CHILDREN MANY HAVE BOTH FATHERS AND MOTHERS WHO WORK OUTSIDE THE HOME BUT THERE ARE TRADITIONAL MODELS TOO TIPPER GORE FOR EXAMPLE STAYED HOME TO RAISE THE CHILDREN IN CONGRESS WISCONSIN DEMOCRAT RUSSELL FEINGOLD A 40YEAROLD FRESHMAN SENATOR AND HIS WIFE MARY HAVE FOUR CHILDREN FROM PREVIOUS MARRIAGES HIS TWO DAUGHTERS AGES 13 AND NINE AND HER TWO SONS WHO ARE THE SAME AGES AS THE GIRLS YOU CAN'T BE A YOUNG PARENT IN THIS SOCIETY WITHOUT THINKING ALMOST EVERY DAY ABOUT ISSUES LIKE CHILD CARE EDUCATION HEALTH CARE AND CRIME HE SAYS IN A TELEPHONE INTERVIEW FROM HOME SUDDENLY THE PHONE IS SILENT HOLD IT A SECOND I HAVE A CHILDCARE ISSUE RIGHT NOW HE SAYS AS HE TELLS HIS DAUGHTER JESSICA HONEY I'M ON THE PHONE GREGORY N RACZ CONTRIBUTED TO THIS ARTICLE 9303080060 930308 BUSINESS BRIEF TSL HOLDINGS INC PERSONALCOMPUTER CONCERN FILES FOR CHAPTER 11 STATUS TSL HOLDINGS INC SAID IT FILED IN A FEDERAL COURT FOR REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND THAT IT WILL TRY TO SATISFY CREDITORS' CLAIMS WITH AN EQUITYFORDEBT SWAP THE MOORPARK CALIF PERSONALCOMPUTER MAKER FORMERLY CALLED TANDON CORP HAS BEEN HURT BY THE INDUSTRY'S PRICE WARS AND SOFTENING SALES IN EUROPE ITS MAIN MARKET FOR THE NINE MONTHS ENDED SEPT 30 IT REPORTED A LOSS OF 423 MILLION OR 65 CENTS A SHARE COMPARED WITH A LOSS OF 283 MILLION OR 45 CENTS A SHARE IN THE YEARAGO PERIOD SALES DROPPED 19 TO 2495 MILLION FROM 3087 MILLION TSL SAID ALMOST ALL OF ITS DEBT IS TRADERELATED AND AMOUNTS TO NEARLY 90 MILLION A COMPANY SPOKESMAN DECLINED TO ESTIMATE HOW MUCH EQUITY MIGHT BE EXCHANGED FOR THE DEBT OR WHAT KIND OF STAKE SHAREHOLDERS MIGHT RETAIN IF ANY 9303080059 930308 TECHNOLOGY US JUDGE CLEARS OHIO INCINERATOR TO START TEST BURN BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE RULED THAT AN INCINERATOR IN EAST LIVERPOOL OHIO MAY BEGIN A TRIAL BURN BUT MAY NOT START COMMERCIAL OPERATION UNTIL THE ENVIRONMENTAL PROTECTION AGENCY HAS AFFIRMED THE INCINERATOR IS SAFE THE HAZARDOUSWASTE INCINERATOR IS OWNED BY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL LTD THE ISSUE ATTRACTED NATIONAL ATTENTION IN DECEMBER WHEN ALBERT GORE WHO WAS VICE PRESIDENTELECT AT THE TIME ISSUED A STATEMENT PLEDGING THAT THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE PLANT TO CONDUCT A TEST BURN UNTIL QUESTIONS ABOUT SAFETY AND ALLEGED PROCEDURAL IRREGULARITIES WERE RESOLVED THE INCINERATOR IS LOCATED 1100 FEET FROM AN ELEMENTARY SCHOOL AFTER MR GORE MADE THE PLEDGE THE EPA APPROVED A TRIAL BURN FOR THE INCINERATOR IN THE FINAL DAYS OF THE BUSH ADMINISTRATION THE ENVIRONMENTAL ORGANIZATION GREENPEACE THEN TOOK THE MATTER TO COURT AND A TEMPORARY RESTRAINING ORDER ISSUED IN CLEVELAND BY JUDGE ANN ALDRICH BLOCKED THE TEST BURN PRIOR TO HER FINAL RULING ON FRIDAY THE NEW RULING APPEARS TO GIVE THE EPA UP TO A YEAR TO EXAMINE THE RESULTS OF AN EIGHTDAY TRIAL BURN BEFORE THE PLANT BEGINS COMMERCIAL OPERATION LIMITED COMMERCIAL OPERATION GENERALLY BEGINS IMMEDIATELY AFTER AN INCINERATOR'S TEST BURN CAROL BROWNER THE NEW EPA ADMINISTRATOR HAS RECUSED HERSELF FROM THE MATTER BECAUSE CITIZEN ACTION A GRASSROOTS LOBBY WHERE SHE FORMERLY WORKED AND WHERE HER HUSBAND CURRENTLY WORKS IS TANGENTIALLY INVOLVED IN THE DISPUTE RICK HIND LEGISLATIVE DIRECTOR OF THE GREENPEACE TOXICS CAMPAIGN WHICH CONTENDS THE INCINERATOR WOULD EXPOSE INDIVIDUALS TO UNACCEPTABLY HIGH LEVELS OF DIOXIN ARGUES THAT THE DECISION TO ALLOW THE TEST BURN IS TANTAMOUNT TO AN EXPERIMENT ON HUMAN BEINGS JEFFREY ZELICK PLANT MANAGER FOR WASTE TECHNOLOGIES INDUSTRIES IN EAST LIVERPOOL SAID THAT THE COMPANY HAD NO COMMENT ON THE DECISION BUT THAT IT INTENDED TO FILE AN APPEAL TODAY URGING THE COURT TO ALLOW COMMERCIAL OPERATION TO BEGIN IMMEDIATELY FOLLOWING THE TEST BURN HE SAID THE TEST BURN WOULD BEGIN WITHIN A WEEK 9303080058 930308 NOTICE TO READERS DUE TO TECHNICAL PROBLEMS AT THE FEDERAL RESERVE THE GOVERNMENT BONDS & NOTES ARE UNAVAILABLE 9303080057 930308 BUSINESS BRIEF DURIRON CO FORECAST FOR FIRSTPERIOD NET IS SET BELOW 29 CENTS A SHARE DURIRON CO CITING WEAK WORLDWIDE DEMAND FOR ITS CHEMICAL PLANT EQUIPMENT SAID IT EXPECTS PERFORMANCE DURING THE FIRST QUARTER TO BE MARGINALLY LOWER THAN LAST YEAR'S THIRD QUARTER WHEN IT EARNED 29 CENTS A SHARE ON SALES OF 739 MILLION THE ANNOUNCEMENT MADE AFTER TRADING FRIDAY WHEN DURIRON SHARES CLOSED UNCHANGED AT 2425 IS LIKELY TO DISAPPOINT WALL STREET WHERE ANALYSTS HAVE ESTIMATED THE COMPANY WOULD EARN ABOUT 35 CENTS A SHARE IN THE FIRST QUARTER AS FOR THE REST OF THE YEAR THE DAYTON OHIO COMPANY SAID THE LONGER THAT WE FACE RELATIVELY WEAK DEMAND COUPLED WITH HIGHLY COMPETITIVE PRICING THE LESS LIKELY IT BECOMES THAT WE WILL BE ABLE TO IMPROVE UPON OUR 1992 OPERATING PERFORMANCE DURING 1992 THE COMPANY HAD INCOME BEFORE RESTRUCTURING AND ACCOUNTING CHARGES OF 17 MILLION OR 134 CENTS A SHARE ON SALES OF 300 MILLION 9303080056 930308 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 307 30 TO 89 DAYS 308 90 TO 149 DAYS 310 150 TO 179 DAYS 313 180 TO 239 DAYS 315 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 315 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 267 THREE MONTHS 280 SIX MONTHS 298 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 315 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 308 30 DAYS 308 60 DAYS 308 90 DAYS 310 120 DAYS 313 150 DAYS 315 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 1/4 SIX MONTHS 3 7/16 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 625 GERMANY 9 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 MARCH 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 719 60 DAYS 730 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 721 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303080055 930308 INDIA INCREASES ESTIMATE ON SIZE OF STOCK SCANDAL REPORT PUTS MISSING FUNDS AT 123 BILLION CITES ROLE OF 2 FOREIGN BANKS BY SUMAN DUBEY SPECIAL TO THE WALL STREET JOURNAL NEW DELHI THE RESERVE BANK OF INDIA HAS INCREASED ITS ESTIMATE OF THE SCALE OF LAST YEAR'S SECURITIES SCANDAL TO 4024 BILLION RUPEES 123 BILLION FROM 3193 BILLION RUPEES LAST JUNE AN ADDITIONAL BUNDLE OF 35 BILLION RUPEES OF DISPUTED SECURITIES THAT STANDARD CHARTERED BANK REPORTEDLY RECEIVED FROM HITEN P DALAL ONE OF THE BROKERS CHARGED WITH COMPLICITY IN THE SCANDAL TAKES THE TOTAL AMOUNT OF MONEY MISSING FROM THE BOOKS OF SEVERAL BANKS TO 4374 BILLION RUPEES FROM 3543 BILLION RUPEES IN LAST YEAR'S ESTIMATE THE NEW ESTIMATES BASED ON CONTINUING INVESTIGATIONS BY THE RESERVE BANK ARE CONTAINED IN THE FOURTH REPORT PREPARED BY A TEAM HEADED BY RESERVE BANK DEPUTY GOV R JANAKIRAMAN THE REPORT WHICH WAS MADE PUBLIC SATURDAY INDICATES THAT A FIFTH FINAL REPORT IS STILL TO BE WRITTEN IN THE SCANDAL OFFICIALS OF MAJOR INDIAN AND FOREIGN BANKS FINANCE COMPANIES AND PUBLICSECTOR CONCERNS ALONG WITH SEVERAL LEADING BROKERS ALLEGEDLY DIVERTED BANK AND CORPORATE FUNDS INTO THE STOCK MARKET IN VIOLATION OF BANKING AND SECURITIES LAWS AND REGULATIONS OUTRIGHT FRAUD OCCURRED WHEN WITH THE STOCK MARKET BOOMING FROM LATE 1991 ONWARD SOME BROKERS GAINED ACCESS TO BANK FUNDS AGAINST MERE PROMISES TO DELIVER SECURITIES OR AGAINST BANK RECEIPTS TEMPORARY INSTRUMENTS ISSUED IN LIEU OF SECURITIES REPRESENTING SECURITIES THAT DID NOT EVEN EXIST THE LATEST REPORT EXAMINES THE ROLE OF FOUR INDIAN BANKS AND TWO OF THE FOUR FOREIGN BANKS KNOWN TO HAVE BEEN IMPLICATED IN THE SCANDAL IN EARLIER REPORTS MR JANAKIRAMAN DEALT WITH ALLEGED WRONGDOING BY STANDARD CHARTERED ANZ GRINDLAYS BANK CITICORP'S CITIBANK AND BANK OF AMERICA A UNIT OF BANKAMERICA CORP THIS REPORT RETURNS TO BRITAIN'S STANDARD CHARTERED AND ANZ GRINDLAYS A UNIT OF AUSTRALIA'S ANZ BANKING GROUP BASED ON NEW MATERIAL OFFICIALS OF STANDARD CHARTERED AND ANZ GRINDLAYS WEREN'T IMMEDIATELY AVAILABLE TO COMMENT ON THE REPORT ALL FOREIGN BANKS CONCERNED HAVE GENERALLY DENIED THAT THEY KNOWINGLY VIOLATED RESERVE BANK GUIDELINES THE REPORT SAYS THAT INVESTIGATIONS HAVE UNCOVERED FURTHER DOUBTFUL TRANSACTIONS ON THE BOOKS OF STANDARD CHARTERED THAT INCREASE ITS LIABILITY BY 154 BILLION RUPEES TO 1486 BILLION RUPEES THIS REPRESENTS TRANSACTIONS NOT BACKED BY SECURITIES OR RECEIPTS FOR SECURITIES OR BACKED BY FICTITIOUS RECEIPTS IN ADDITION TO THE 35 BILLION RUPEES OF SECURITIES IT ACQUIRED FROM MR DALAL STANDARD CHARTERED HAS RECOVERED SOME MINOR AMOUNTS REDUCING ITS NET UNCOVERED GAP TO 1132 BILLION RUPEES BUT THE RESERVE BANK REPORT SAYS THE MARKET VALUE OF THE DALAL SECURITIES HAS FALLEN TO ABOUT 15 BILLION RUPEES THE LATEST REPORT REITERATES EARLIER CRITICISM OF STANDARD CHARTERED'S SECURITIES TRANSACTIONS WHICH IT SAYS WERE IN TOTAL CONTRAVENTION OF RESERVE BANK GUIDELINES AND IN VIOLATION OF THE NORMS OF PRUDENT BANKING THE REPORT ACCUSES STANDARD CHARTERED A UNIT OF STANDARD CHARTERED PLC OF MANIPULATING INVESTMENT AND ACCOUNTING RECORDS AND OF RECORDING DUMMY AND FICTITIOUS TRANSACTIONS IT ALSO SAYS THE BANK DEVISED A SOCALLED CORPORATE CASH DEPLOYMENT SERVICE SCHEME ESSENTIALLY A CORPORATE INVESTMENT SERVICE IN ORDER TO GET AROUND RESERVE BANK REGULATIONS PARTICULARLY INTERESTRATE GUIDELINES THE REPORT DESCRIBES THIS SERVICE AS ONLY A FACADE FOR THE RECEIPT OF DEPOSITS FROM CUSTOMERS ON WHICH INTEREST WAS ALLOWED AT RATES IN EXCESS OF THE MAXIMUM RATES STIPULATED BY THE RESERVE BANK THE REPORT ALSO ALLEGES THAT STANDARD CHARTERED DEALERS OFTEN WERE BAILED OUT BY MR DALAL THE BROKER WHO HANDLED MOST OF ITS SECURITIES TRANSACTIONS WHEN THEY TRADED POORLY AND INCURRED HEAVY LOSSES THIS GAVE MR DALAL VIRTUAL CONTROL OF THE BANK'S TREASURY DEPARTMENT AND ENABLED HIM TO GAIN ACCESS TO BILLIONS OF RUPEES OF THE BANK'S FUNDS MR JANAKIRAMAN'S FOURTH REPORT ALSO HIGHLIGHTS ALLEGED VIOLATIONS BY ANZ GRINDLAYS BANK CHIEFLY IN ALLOWING HARSHAD MEHTA THE BOMBAY BROKER CHARGED WITH COMPLICITY IN THE SCANDAL A SPECIAL RELATIONSHIP THAT ENABLED HIM TO ROUTE HIS SECURITIES TRANSACTIONS THROUGH GRINDLAYS AND ENJOY UNAUTHORIZED OVERDRAFT FACILITIES MOST OF THE DETAILS CONCERNING GRINDLAYS IN THE NEW REPORT DO NO MORE THAN ADD NEW INSTANCES TO ALLEGED VIOLATIONS OF GUIDELINES AND PRACTICES ALREADY CITED IN EARLIER REPORTS GRINDLAYS IS IN ARBITRATION WITH NATIONAL HOUSING BANK A RESERVE BANK SUBSIDIARY WHOSE CHECKS IT PAID INTO MR MEHTA'S ACCOUNTS STANDARD CHARTERED HAS ADMITTED THAT SOME OF ITS OFFICIALS VIOLATED BANKING NORMS AND INTERNAL GUIDELINES BUT SAYS THEY DID SO WITHOUT THE APPROVAL OF SENIOR MANAGEMENT MOST OF THOSE SO CHARGED HAVE BEEN FIRED BY THE BANK BANK OF AMERICA CITIBANK GRINDLAYS AND STANDARD CHARTERED HAVE ALL TESTIFIED BEFORE A PARLIAMENTARY COMMITTEE LOOKING INTO THE SCANDAL 9303080054 930308 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BOSTON EDISON CO 650 MILLION FIVEPART ISSUE OF DEBENTURES WAS PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE FIRST PART A 100 MILLION ISSUE OF 5 1/8 DEBENTURES DUE MARCH 15 1996 WAS PRICED AT 99948 TO YIELD 5144 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE SECOND PART A 100 MILLION ISSUE OF 570 DEBENTURES DUE MARCH 15 1997 WAS PRICED AT 9995 TO YIELD 5714 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE A COMPARABLE TREASURY ISSUE THE THIRD PART A 100 MILLION ISSUE OF 595 DEBENTURES DUE MARCH 15 1998 WAS PRICED AT 99863 TO YIELD 5982 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE FOURTH PART A 150 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2003 WAS PRICED AT PAR TO YIELD 68 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE FIFTH PART A 200 MILLION ISSUE OF 780 DEBENTURES DUE MARCH 15 2023 WAS PRICED AT 99666 TO YIELD 7829 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND ALL PARTS OF THE OFFERING ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P PROCTER & GAMBLE CO 175 MILLION OF 7375 DEBENTURES DUE MARCH 1 2023 WAS PRICED AT 9984 TO YIELD 7388 A 60BASIS POINT SPREAD ABOVE THE 30YEAR TREASURY BOND RATED DOUBLE A2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE ISSUE IS NONCALLABLE FOR 10 YEARS CONTINENTAL MEDICAL SYSTEMS INC 150 MILLION OF SENIOR SUBORDINATED NOTES DUE APRIL 1 2003 WAS PRICED AS 10375 AT 99224 TO YIELD 1050 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY GOLDMAN SACHS THE OFFERING SERIES 199345 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES GOLD 1496 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL HOME LOAN BANK 100 MILLION FLOATINGRATE NOTES DUE MARCH 19 1998 WAS PRICED INITIALLY AT PAR TO FLOAT 20 BASIS POINTS BELOW THE 11TH DISTRICT COST OF FUNDS INDEX RATED TRIPLEA BY MOODY AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FEDERAL HOME LOAN BANK 100 MILLION ISSUE OF STEPUP NOTES DUE MARCH 16 1998 WAS PRICED AT PAR TO YIELD 425 A 90BASIS POINT SPREAD ABOVE TREASURYS THE NOTES STEP UP TO A COUPON OF 595 IN ONE YEAR FOR AN INITIAL RATE OF RETURN OF 5574 RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO LANDSTAR SYSTEM CORP AN INITIAL OFFERING OF 4750000 SHARES WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC OF THE SHARES SOLD 25 MILLION WERE OFFERED BY THE COMPANY AND THE REST WERE OFFERED BY CERTAIN SELLING STOCKHOLDERS EQUICREDIT CORP AN INITIAL OFFERING OF 35 MILLION SHARES WAS PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC SBAB SWEDISH HOUSING CORP SWEDISH AGENCY 100 MILLION POUNDS OF 7 3/8 EUROBONDS DUE APRIL 8 1998 AT AN ISSUE PRICE OF 101275 VIA DAIWA EUROPE LTD AND UBS PHILLIPS & DREW SECURITIES LTD REOFFERED AT 9970 TO YIELD 744 SEMIANNUALLY A SPREAD OF 75 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT NOTE NORTHERN ROCK UK 50 MILLION POUNDS OF SUBORDINATED BONDS DUE MARCH 25 2018 AT 101764 VIA SG WARBURG REOFFERED AT 99889 TO YIELD 1039 A SPREAD OF 180 BASIS POINTS ABOVE COMPARABLE UK GILT SUMITOMO REALTY & DEVELOPMENT CO JAPAN PARENT 30 BILLION YEN OF 42 EUROBONDS DUE JUNE 24 1997 AT AN ISSUE PRICE OF 10150 VIA DAIWA EUROPE LTD REOFFERED AT 100175 TO YIELD 415 AND WILL NOT BE ACTIVELY TRADED SUMITOMO REALTY & DEVELOPMENT CO JAPAN PARENT 20 BILLION YEN OF 48 EUROBONDS DUE JUNE 23 2000 AT AN ISSUE PRICE OF 101648 VIA GOLDMAN SACHS INTERNATIONAL LTD SUMITOMO REALTY & DEVELOPMENT CO JAPAN PARENT 20 BILLION YEN OF 45 EUROBONDS DUE JUNE 23 1998 AT AN ISSUE PRICE OF 101475 VIA GOLDMAN SACHS INTERNATIONAL LTD FEES 1 7/8 HAMBURGISCHE LANDESBANKGIROZENTRALE GERMANY 100 MILLION DEUTSCHE MARKS VIA AN ISSUE OF REVERSECOUPON FLOATING RATE EURONOTES DUE APRIL 8 2003 VIA TRINKAUS & BURKHARDT NOTES PAY 9 COUPON IN FIRST YEAR THEREAFTER SEMIANNUAL COUPONS AT 12 1/8 MINUS THE PREVAILING SIXMONTH DEUTSCHE MARK LONDON INTERBANK OFFERED RATE ISSUE PRICE PAR 9303080053 930308 OTC FOCUS EVERGREEN FUND FINDS BARGAINS IN SMALLESTOFSMALL MICROCAPS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEW PEOPLE ON WALL STREET HAVE EVER HEARD OF HOSPOSABLE PRODUCTS INC WHICH IS JUST THE WAY ROBIN KELLY LIKES IT I'VE NEVER SEEN A BROKERAGE REPORT ON THE STOCK SAYS MS KELLY THE 39YEAROLD MANAGER WHO RUNS THE TOPPERFORMING EVERGREEN LIMITED MARKET FUND NOBODY FOLLOWS IT AS FAR AS I KNOW I LIKE IT A LOT HOSPOSABLE IS A BOUND BROOK NJ MAKER OF DISPOSABLE BED PADS AND IT IS TYPICAL OF THE STOCKS IN MS KELLY'S FUND EARNINGS ARE GROWING BRISKLY THE STOCK'S MULTIPLE OF EXPECTED EARNINGS IS MODEST AND THE COMPANY IS VERY SMALL WITH A MARKET VALUE OF 9 MILLION HOSPOSABLE IS WHAT THE STREET CALLS A MICROCAP STOCK SO TINY THAT EVEN MOST SMALLSTOCK MUTUAL FUNDS WOULDN'T DREAM OF BUYING IT IT'S FUN BEING ONE OF THE FEW PEOPLE FOLLOWING A COMPANY SAYS MS KELLY THERE ARE SOME COMPANIES THAT ARE TRULY UNDISCOVERED THEY'RE UNDERVALUED BECAUSE NOBODY'S LOOKING AT THEM MANY SUCH STOCKS TRADE IN THE NASDAQ OVERTHECOUNTER MARKET THE 69 MILLIONINASSETS EVERGREEN FUND INVESTS ONLY IN COMPANIES WITH STOCKMARKET VALUES BELOW 100 MILLION ITS SMALLEST STOCK IS IMTEC A MAKER OF PRINTER ACCESSORIES WITH A MARKET VALUE OF 3 MILLION THE LARGEST IS ONE VALLEY BANCORP OF WEST VIRGINIA VALUED AT AROUND 400 MILLION BECAUSE OF MARKET APPRECIATION ABOUT A THIRD OF THE FUND'S HOLDINGS NOW HAVE MARKET VALUES EXCEEDING 100 MILLION THE AVERAGE MARKET VALUE OF THE FUND'S 165 HOLDINGS IS A TINY 49 MILLION ACCORDING TO FUND RESEARCHER MORNINGSTAR INC THERE ARE ONLY TWO OTHER SMALLSTOCK FUNDS WHOSE HOLDINGS HAVE A SMALLER AVERAGE MARKET VALUE OFTENTIMES WE'RE ONE OF THE FIRST INSTITUTIONAL INVESTORS TO BE INTERESTED IN A COMPANY SAYS MS KELLY IN ADDITION TO ITS FOCUS ON TINY COMPANIES THERE'S ANOTHER REASON THE EVERGREEN FUND MERITS ATTENTION IT'S ONE OF A SHRINKING NUMBER OF SMALLCOMPANY STOCK FUNDS WITH GOOD TRACK RECORDS THAT ARE STILL ACCEPTING MONEY FROM NEW INVESTORS INTERESTED IN A SMALLSTOCK FUND THAT DOESN'T CHARGE A SALES COMMISSION AMONG THE TOP SEVEN NOLOAD SMALLSTOCK FUNDS FOR THE PAST FIVE YEARS FIVE ARE CLOSED AND A SIXTH MAY SOON START TURNING AWAY NEW INVESTORS THE LATEST CLOSING BY A SMALLSTOCK FUND CAME LAST WEEK WHEN T ROWE PRICE SMALLCAP VALUE FUND ANNOUNCED THAT IT WAS TURNING AWAY NEW INVESTORS IN EARLY FEBRUARY FIDELITY LOWPRICED STOCK FUND CLOSED FOR AN INDEFINITE PERIOD OTHER FUND CLOSINGS ARE EXPECTED IN THE MONTHS AHEAD BUT WHILE ALL THESE FUNDS ARE STARTING TO CLOSE NOLOAD EVERGREEN FUND HAS GONE THE OTHER WAY AFTER BEING CLOSED FOR MUCH OF ITS NINEYEAR EXISTENCE THE FUND REOPENED IN DECEMBER THE FUND WHICH IS BASED IN PURCHASE NY DEMANDS A 5000 MINIMUM INVESTMENT HOW GOOD IS MS KELLY'S RECORD ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES THE FUND HAS RETURNED 165 A YEAR SINCE ITS 1983 LAUNCH OUTPERFORMING ALL BUT EIGHT OTHER STOCK FUNDS AMONG THE FUND'S ORIGINAL SHAREHOLDERS WAS STEPHEN MILMAN WHO USED TO WORK AT EVERGREEN FUND BUT NOW MANAGES NEUBERGER & BERMAN GENESIS FUND ANOTHER SMALLSTOCK FUND AS AN EVERGREEN EMPLOYEE I BOUGHT THE FUND ON THE ORIGINAL OFFERING AND HAVE NEVER SOLD A SHARE SAYS MR MILMAN THAT TELLS YOU WHAT I THINK ABOUT ROBIN AND HER INVESTMENT ABILITY BEFORE BUYING A STOCK MS KELLY OR ONE OF EVERGREEN'S ANALYSTS USUALLY MEETS WITH THE COMPANY'S TOP MANAGEMENT I HAVEN'T SEEN TOO MANY PLUSH CORPORATE OFFICES SHE SAYS IT DOESN'T COME WITH THE SIZE RANGE THE FUND'S LARGEST POSITION IS SOUTHERN ELECTRONICS A COMPUTER PRODUCTS DISTRIBUTOR BASED IN TUCKER GA THERE'S BEEN A VICIOUS COMPUTER PRICE WAR NOTES MS KELLY THIS IS A WAY TO BENEFIT FROM THE DEMAND FOR COMPUTERS WITHOUT GETTING KILLED BY THE PRICE WAR SHE RECKONS SOUTHERN ELECTRONICS WILL EARN 115 A SHARE IN THE 12 MONTHS ENDING IN JUNE 1993 AND 135 FOR THE YEAR THROUGH MID1994 THE STOCK CLOSED FRIDAY AT 15 1/8 MS KELLY IS ALSO A BIG INVESTOR IN SCORE BOARD A SELLER OF SPORTS MEMORABILIA BASED IN CHERRY HILL NJ IT'S A CONTROVERSIAL STOCK SHE SAYS I THINK THEY'RE A VERY INNOVATIVE MARKETER OTHER PEOPLE THINK IT'S A FAD IN FACT SOME INVESTORS ARE BETTING HEAVILY THAT SCORE BOARD'S STOCK WILL DECLINE AS OF MIDFEBRUARY 11 MILLION OF THE COMPANY'S 52 MILLION SHARES HAD BEEN SOLD SHORT IN A SHORT SALE AN INVESTOR SELLS BORROWED STOCK HOPING TO BUY BACK THE BORROWED STOCK LATER AT A LOWER PRICE BUT MS KELLY THINKS SCORE BOARD WILL EARN 225 A SHARE IN THE 12 MONTHS ENDED JANUARY 1994 UP FROM AN ESTIMATED 165 FOR THE YEAR ENDED JANUARY 1993 THE STOCK CLOSED FRIDAY AT 20 THE EVERGREEN FUND HAS ALMOST 12 OF ITS ASSETS INVESTED IN BANKS AND THRIFTS INCLUDING CAPE COD BANK & TRUST IN HYANNIS MASS AND AMERIFED FINANCIAL IN JOLIET ILL WE LIKE BANKS EITHER BECAUSE OF THEIR EARNINGS GROWTH OR BECAUSE OF THEIR TAKEOVER POTENTIAL OR BOTH SAYS MS KELLY DESPITE THE RECENT ROCKY MARKET FOR SMALLCOMPANY STOCKS SHE REMAINS OPTIMISTIC SHE NOTES THAT SMALL STOCKS WERE LACKLUSTER PERFORMERS FROM 1983 TO 1990 THEY'VE BEEN OUT OF FAVOR FOR SO MANY YEARS SAYS MS KELLY WE THINK THERE ARE A LOT OF ATTRACTIVELY PRICED SMALL STOCKS THE NASDAQ COMPOSITE INDEX ZIGZAGGED TO END THE DAY AHEAD 064 OR 009 AT 68137 ADVANCING ISSUES TOPPED DECLINERS 1395 TO 1178 VOLUME SLID TO 2142 MILLION SHARES FROM THURSDAY'S 232 MILLION PRICES WERE JOSTLED THROUGHOUT THE DAY FALLING IN THE MORNING ON WORRIES ABOUT A SLUMPING BOND MARKET RISING ON RENEWED OPTIMISM THROUGH MIDDAY THEN TURNING BACK DOWN ON LATE PROGRAM SELLING GAIL DUDACK A MARKET ANALYST AT SG WARBURG & CO ATTRIBUTED THE BACKANDFORTH ACTION TO UNCERTAINTY ABOUT THE PRESIDENT'S PLANS FOR REVIVING THE ECONOMY AND OVERHAULING HEALTH CARE POLITICS CAN BE EVEN TOUGHER FOR INVESTORS TO PREDICT THAN THE ECONOMY SHE SAID AMGEN DROPPED 1 5/8 TO 33 1/4 AS THE DAY'S MOST ACTIVE ISSUE ON 82 MILLION SHARES HAMBRECHT & QUIST ANALYST WOLE M FAYEMI SAID GROWTH IN SALES OF THE THOUSAND OAKS CALIF COMPANY'S NEUPOGEN DRUG MIGHT BE LOWER THAN EXPECTED IN THE NEXT SEVERAL QUARTERS MR FAYEMI INITIATED COVERAGE OF AMGEN ON FRIDAY WITH A HOLD RATING HE ADVISED CLIENTS TO DELAY BUYING THE STOCK UNTIL MORE SALES DATA ON NEUPOGEN BECOME AVAILABLE THE DRUG IS USED TO PREVENT INFECTIONS DURING CHEMOTHERAPY TREATMENTS FOR CANCER EQUICREDIT JUMPED TO 17 5/8 ON ITS FIRST DAY OF TRADING UP FROM AN INITIAL OFFERING PRICE OF 14 THE JACKSONVILLE FLA CONSUMER FINANCE COMPANY WAS THE SUBJECT OF A 35 MILLIONSHARE OFFERING AN ACTIVE 34 MILLION SHARES CHANGED HANDS FRIDAY SHARES OF S3 INC A SANTA CLARA CALIF COMPUTER PERIPHERAL COMPANY JUMPED TO 19 3/4 FROM THEIR IPO LEVEL OF 15 THE OFFERING ORIGINALLY HAD BEEN EXPECTED TO FETCH JUST 11 TO 13 LANDSTAR SYSTEM HAD A LESS SPECTACULAR START FINISHING UNCHANGED AT ITS INITIAL OFFERING PRICE OF 13 THE SHELTON CONN TRUCKING COMPANY HAD A COMBINED OFFERING OF 4750000 SHARES INCLUDING 2250000 THAT WERE SOLD BY EXISTING HOLDERS BMC SOFTWARE RECOVERED 2 1/4 TO 55 1/4 AFTER PLUNGING 13 1/4 OVER THE PRIOR TWO SESSIONS INVESTORS HAD BEEN RATTLED BY CAUTIONARY COMMENTS THAT THE SUGAR LAND TEXAS COMPANY'S OFFICIALS MADE ABOUT ITS SALES 9303080052 930308 BUSINESS BRIEF INSTORE ADVERTISING INC FIRM ENDS TALKS TO SELL 70 STAKE TO RL RICHARDS INSTORE ADVERTISING INC SAID IT ENDED DISCUSSIONS WITH RL RICHARDS & CO ABOUT A RICHARDSLED GROUP'S OFFER TO BUY 70 OF THE COMPANY BUT RICHARDS SAYS THE LINE IS STILL OPEN INSTORE SHARES LOST A THIRD OF THEIR VALUE IN TRADING FRIDAY AFTER THE COMPANY'S ANNOUNCEMENT AND CLOSED AT 44 CENTS A SHARE DOWN 22 CENTS IN NATIONAL OVERTHECOUNTER TRADING OFFICIALS OF INSTORE IN GREENWICH CONN COULDN'T BE REACHED TO COMMENT ON A STATEMENT THE COMPANY RELEASED FRIDAY BUT RICHARD REIBEN CHAIRMAN OF RL RICHARDS A GARDEN CITY NY INVESTMENT BANKING BOUTIQUE SAID THAT ALTHOUGH A MEETING THURSDAY WITH INSTORE MANAGEMENT FAILED TO REACH AN UNDERSTANDING OUR POSITION IS THE TALKS WEREN'T TERMINATED MR REIBEN SAID THE OFFER WHICH WAS TO HAVE EXPIRED FRIDAY MORNING WAS EXTENDED UNTIL 5 PM WEDNESDAY AND THE GROUP HAS REQUESTED A FORMAL MEETING WITH INSTORE'S BOARD 9303080051 930308 CHIC STAR OF MEXICAN RETAILING SEARS ROEBUCK BY MATT MOFFETT MEXICO CITY ONE OF THE NEWEST SOUTHOFTHEBORDER RETAIL SUCCESS STORIES STARS ONE OF THE OLDEST US DEPARTMENT STORES IN MEXICO SEARS ROEBUCK & CO FOUNDED IN 1947 SEARS DE MEXICO HAS FLOURISHED IN THE LAST FOUR YEARS THANKS TO AN AGGRESSIVE MANAGER WHO TRANSFORMED A FADING MASS RETAILER INTO A FASHIONABLE EMPORIUM FOR MEXICO'S GROWING PROFESSIONAL CLASS SEARS'S MEXICAN STORES HAVE GOTTEN VERY NICE MUCH NICER IN FACT THAN THE ONES IN THE UNITED STATES SAYS CARLOS TORRES CHIEF FINANCIAL OFFICER OF SALINAS & ROCHA A NATIONAL FURNITURE CHAIN INDEED AS SEARS'S BELEAGUERED US PARENT COMPANY STARTS ITS OWN IMAGE MAKEOVER IT MIGHT DO WELL TO STUDY THE EXPERIENCE OF ITS 37STORE MEXICAN SUBSIDIARY BY THE END OF THE 1980S SEARS JUST WASN'T LIVING UP TO OUR MEXICAN CUSTOMERS' EXPECTATIONS SAYS THURMON WILLIAMS A TOUGHTALKING EXMARINE WHO WAS NAMED PRESIDENT OF SEARS DE MEXICO IN 1988 WE HAD TO CHOOSE BETWEEN GETTING SERIOUS ABOUT MEXICO OR GETTING OUT OF THE MARKET SEARS GOT SERIOUS IT TARGETED THE AFFLUENT TOP 10TH OF THE MEXICAN POPULATION BY UPGRADING ITS STORES WITH ITS MARBLE FLOORS AND TASTEFULLY SUBDUED LIGHTING THE NEW SEARS STORE IN THE SUBURB OF VILLA COAPA IS A PALACE OF CONSPICUOUS CONSUMPTION THERE ARE STYLES BY NINA RICCI FRAGRANCES BY GUERLAIN AND SHOES BY BALLY THE IMAGE OVERHAUL HAS BEEN REFLECTED IN STEADILY IMPROVING FINANCIAL RESULTS SEARS DE MEXICO'S SALES ROSE BY 17 IN 1992 TO 410 MILLION ENGINEERING THE TURNAROUND HAS REQUIRED MR WILLIAMS TO ADOPT A VERY PERSONALIZED MANAGEMENT STYLE GIVEN THE DEARTH OF MARKETING INFORMATION IN MEXICO THE SEARS PRESIDENT SPENDS AN AVERAGE OF TWO TO THREE HOURS A DAY ON THE FLOOR OF HIS STORES WE'RE USED TO BEING SPOONFED IN THE US SAYS MR WILLIAMS A 31YEAR SEARS VETERAN BUT IN MEXICO YOU HAVE TO MANAGE BY FEEL AN HOUR BEFORE THE VILLA COAPA STORE OPENED ONE RECENT MORNING MR WILLIAMS WAS STARTING HIS WORKDAY ON THE LOADING DOCK THE SEARS PRESIDENT SPOKE IN SPANISH TO A RECEIVING MANAGER WHO HAD BEEN HAVING DELIVERIES SNARLED IN CORPORATE RED TAPE MR WILLIAMS THEN MADE HIS WAY THROUGH THE STORE GREETING MANY OF THE CLERKS BY NAME DIME UNA HISTORIA DE EXITO HE TOLD AN ELECTRONICS SALESMAN TELL ME A SUCCESS STORY THIS IS ALL PART OF MR WILLIAMS'S EFFORT TO CREATE A SERVICE CULTURE IN A COUNTRY WHERE THE CUSTOMER HAS NEVER BEEN KING HE APPEALS TO THE MEXICAN SENSE OF FORMALITY BY OFFERING EMPLOYEES TITLES IN REWARD FOR GOOD WORK I HAVE AN ASSISTANT TO EVERYBODY HE SAYS HE ALSO ALLOWS THE SALES FORCE TO BUY CLOTHES AT COST SO THAT SEARS CLERKS ARE ALWAYS NATTY BUT MR WILLIAMS CAN BE TOUGH IF A CUSTOMER COMPLAINS OF BEING TREATED RUDELY MR WILLIAMS MAKES THE OFFENDING EMPLOYEE PERSONALLY DELIVER A DOZEN ROSES TO THE CUSTOMER IT'S SUCH A HUMBLING EXPERIENCE FOR THE EMPLOYEE THAT WE'VE NEVER HAD A REPEAT OFFENDER HE SAYS MR WILLIAMS IS BULLISH ON MEXICO BUT HAS SOME DOUBTS ABOUT THE RUSH OF NEW US RETAILERS INTENT UPON TAPPING THE HUGE POPULATIONS OF MEXICAN URBAN CENTERS IF YOU TAKE A TOWN OF 200000 BUT FIGURE THE TOP 8 OR 10 ARE THE ONLY ONES WHO HAVE MONEY TO SHOP THEN YOU DON'T EVEN HAVE ENOUGH OF A MARKET FOR A CATALOG STORE HE SAYS HOW THEN DOES A MERCHANT IN MEXICO DEVELOP STRATEGY MR WILLIAMS WETS HIS THUMB IN HIS MOUTH AND HOISTS IT IN THE AIR 9303080050 930308 SALOMON BROTHERS ASIA TO CUT 10 OF TOKYO STAFF TOKYO TOKYO'S LONGLASTING BEAR MARKET IS FORCING SALOMON BROTHERS ASIA LTD TO CUT 10 OF ITS TOKYO STAFF CURRENTLY ABOUT 550 PEOPLE A SPOKESMAN FOR THE SALOMON INC OPERATION SAID ABOUT 60 PEOPLE LARGELY FROM THE ADMINISTRATION AND SUPPORT STAFF WERE BEING OFFERED VOLUNTARY RETIREMENT PACKAGES THE COMPANY ISN'T SEEKING RESIGNATIONS OF ANY TRADERS HE SAID THE TOKYO STOCK MARKET IN ITS FOURTH YEAR OF DULL BEARISH TRADING HAS SEEN A SHARP FALL IN TRADING VOLUME OTHER FOREIGN SECURITIES FIRMS IN TOKYO HAVE ALREADY REDUCED STAFF THOUGH SALOMON BROTHERS IS THE MOST PROFITABLE FIRM SO FAR TO CUT JOBS SHARPLY ALMOST ALL JAPANESE FIRMS WHICH ARE COPING THROUGH A COMBINATION OF HIRING CUTBACKS AND ATTRITION ARE THOUGHT TO BE OPERATING AT A LOSS WHEN THE VOLUME OF TRADING IS DOWN YOU'VE GOT TO MAKE DECISIONS ABOUT STAFFING THE SALOMON SPOKESMAN SAID HE SAID THE COMPANY IS ALSO REVIEWING ITS OFFICESPACE REQUIREMENTS IN TOKYO 9303080049 930308 CLOUDY ISSUE AIDING AVIATION FIRMS AS CLINTON VOWS TO DO WILL BE VERY TRICKY TARGETING EUROPE'S AIRBUS FOR EXAMPLE WILL HURT US AIRLINES JET MAKERS IS IT A LOSELOSE SITUATION' BY BOB DAVIS AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS PROMISING TO PULL THE NATION'S PLUMMETING AVIATION INDUSTRY OUT OF ITS TAILSPIN THE COURSE HE CHARTS AS PILOTINCHIEF WILL TELL JUST HOW FAR HIS ADMINISTRATION IS WILLING TO GO TO HELP US INDUSTRY BUT MR CLINTON IS EMBARKING ON A DANGEROUS COURSE THAT MAY LAND HIM IN A POLITICAL AND ECONOMIC MORASS HIS STRONG RHETORIC IS RUNNING WELL AHEAD OF ANY SPECIFIC PLANS BY HIS GOVERNMENT TO HELP AIRLINES AND AIRCRAFT MANUFACTURERS INDEED HIS COMMENTS IN DETROIT LAST MONTH CAUGHT MANY HIGHRANKING OFFICIALS BY SURPRISE HE RUNS THE RISK OF CREATING EXPECTATIONS OF A HUGE RESCUE PLAN THAT HE CAN'T DELIVER AND DESPITE HIS GOOD INTENTIONS ANY POLICY TO HELP THE AVIATION INDUSTRY CAN EASILY BOOMERANG FOR EXAMPLE JAWBONING AIRBUS INDUSTRIE THE GIANT EUROPEAN AIRCRAFT CONSORTIUM TO TRIM SUBSIDIES COULD HAVE THE EFFECT OF RAISING PRICES ON ALL AIRCRAFT AT A TIME WHEN US AIRLINES CAN ILL AFFORD HIGHER COSTS THREATENING A TRADE WAR OVER SUBSIDIES CAN BACKFIRE ON US AIRCRAFT MAKERS WHO SELL IN EUROPE AND ON US CARRIERS WHO WANT MORE LANDING RIGHTS THERE CREATING GOVERNMENTFUNDED VENTURES TO DEVELOP NEXTGENERATION AIRPLANES CAN PRODUCE TECHNOLOGICAL BOONDOGGLES THAT LAWMAKERS KEEP ALIVE TO PROTECT JOBS IN THEIR DISTRICTS PRESIDENT CLINTON MAY FIND HIMSELF IN A LOSELOSE SITUATION CAUTIONS ROGER NOLL A STANFORD UNIVERSITY ECONOMIST EITHER WE LOSE AIRCRAFT BUSINESS OR WE GET INTO A SUBSIDY WAR WITH EUROPE EVEN BOEING CO WHICH IS SUPPOSED TO BE A MAJOR BENEFICIARY OF THE PRESIDENT'S ATTENTION IS CAUTIOUS THE PRESIDENT HAS THE BEST OF INTENTIONS SAYS LAWRENCE CLARKSON BOEING VICE PRESIDENT OF GOVERNMENT AFFAIRS BUT TRADE NEGOTIATORS MUST UNDERSTAND THE NUANCES OF THE COMPANY'S COMPETITIVE SITUATION VICE PRESIDENT GORE SAYS THE WHITE HOUSE IS MOVING AHEAD QUICKLY AND PLANS TO APPOINT AN INTERAGENCY TASK FORCE TO WORK OUT THE TECHNOLOGY TRADE AND TAX QUESTIONS BURDENING THE INDUSTRY WE WANT TO ARRIVE AT A THOROUGHGOING STRATEGY FOR RESTORING THE HEALTH OF THE AEROSPACE INDUSTRY HE SAYS IN AN INTERVIEW THE DILEMMAS AND CONTRADICTIONS ARE ALREADY EMERGING A MAINSTAY IN MR CLINTON'S ECONOMIC PACKAGE IS AN ENERGY TAX THAT THE AIRLINES CLAIM WOULD EVENTUALLY ADD MORE THAN 1 BILLION A YEAR TO THEIR JETFUEL BILL UNDERCUTTING THEIR CHANCES FOR STAGING MUCH OF A COMEBACK MR CLINTON'S HEALTHCARE PLANS WILL ALMOST CERTAINLY ADD TO THEIR COSTS AS WELL BUT EXEMPTING AIRLINES FROM SUCH BURDENS WOULD ENCOURAGE OTHER INDUSTRIES TO SEEK FAVORS LEADING TO A GENERAL UNRAVELING OF THE PRESIDENT'S ECONOMIC PACKAGE AND BOEING FEARS THAT IF THE US CRACKS DOWN ON HUMANRIGHTS VIOLATIONS IN CHINA BY WITHDRAWING PREFERENTIAL TARIFF TREATMENT AS MR CLINTON HAS HINTED HE MIGHT THE COMPANY COULD LOSE BILLIONS OF DOLLARS OF SALES IN CHINA TO AIRBUS HOW THE PRESIDENT DECIDES TO TACKLE AVIATION ISSUES WILL SET A CLEAR PRECEDENT FOR OTHER INDUSTRIES FROM AUTOS TO HIGHSPEED RAIL THAT ARE SEEKING GOVERNMENT HELP IN FENDING OFF FOREIGN COMPETITORS AND DEVELOPING NEW TECHNOLOGY LESTER THUROW DEAN OF MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOAN MANAGEMENT SCHOOL WHOSE WRITINGS MR CLINTON QUOTED TO SOME BOEING WORKERS LAST MONTH SAYS THE PRESIDENT SHOULD FOLLOW UP AN AVIATION RESCUE WITH ONE FOR THE US CONSUMERELECTRONICS INDUSTRY IN A RECENT BOOK PUBLISHED BEFORE SHE BECAME CHAIRWOMAN OF THE COUNCIL ON ECONOMIC ADVISERS LAURA D'ANDREA TYSON CITES AVIATION'S TRAVAILS TO JUSTIFY BOOSTING SUBSIDIES OF HIGHTECH INDUSTRIES RATHER THAN HOPE THAT FOREIGN INTERVENTIONS IN INDUSTRY WILL CEASE THE US WILL HAVE TO RESPOND WITH OFFSETTING INTERVENTIONS AT HOME MS TYSON WRITES SOME OF THE PRESIDENT'S ADVISERS CONSIDER AVIATION AN IDEAL OPPORTUNITY TO TEST AN INTERVENTIONIST STRATEGY THE US IS THE WORLD LEADER IN AIRCRAFT PRODUCTION AND AIRLINE SERVICES BOTH ARE GLAMOROUS HIGHTECH INDUSTRIES BOTH HAVE BEEN SYMBOLS OF US ECONOMIC PROWESS OVER THE YEARS AND BOTH EMPLOY MILLIONS IN THE MIDWEST AND WEST COAST REGIONS POLITICALLY IMPORTANT TO THE WHITE HOUSE AND THE PRESIDENT CAN PAINT THE COMPETITION AS A BAD GUY AIRBUS HAS BEEN PROPPED UP BY SOMEWHERE BETWEEN 13 BILLION AND 26 BILLION OF SUBSIDIES SO LONG AS HE CONVENIENTLY OVERLOOKS THE MASSIVE HELP THE US HAS PROVIDED ITS AEROSPACE GIANTS THROUGH MILITARY AND SPACE CONTRACTS YOU CAN'T GO THROUGH A PRESIDENTIAL CAMPAIGN AND NOT HAVE IMPRESSED ON YOU THE CHALLENGES FACING THE AEROSPACE INDUSTRY VICE PRESIDENT GORE SAYS MR CLINTON HAS PLAYED THE ISSUE TO THE HILT HE HAS CRISSCROSSED THE COUNTRY DURING THE PAST THREE WEEKS BLASTING EUROPEAN SUBSIDIES OF AIRBUS AND HIGHLIGHTING THE WOES OF US AVIATION LAST MONTH HE PROMISED A STRATEGY TO REVIVE COMMERCIAL AVIATION AT A DETROIT TOWN MEETING HE SINGLED OUT AEROSPACE AS A CRITICAL INDUSTRY DESERVING SPECIAL ATTENTION IN HIS STATE OF THE UNION ADDRESS AND AT A SPRAWLING BOEING PLANT IN EVERETT WASH HE VOWED TO CHANGE THE RULES OF THE GAME SO EUROPE COULD NO LONGER SUBSIDIZE AIRBUS THE PRESIDENT SEEMS OBSESSED WITH HELPING BELEAGUERED AVIATION SAYS MORTEN BEYER AN AVIATION CONSULTANT AND THE INDUSTRY DOES NEED HELP AFTER DECADES OF HIGHFLYING SUCCESS IT HAS RUN INTO ITS STEEPEST DECLINE SINCE THE VIETNAM WAR AIRLINES BLOODIED BY SEEMINGLY SUICIDAL FARE WARS ARE STAGGERING FROM LOSSES EXCEEDING 10 BILLION SINCE 1989 THEIR BASIC PROBLEM TOO MANY PLANES CHASING TOO FEW PASSENGERS AIRCRAFT MANUFACTURERS IN TURN HAVE SEEN HUNDREDS OF AIRLINER ORDERS CANCELED OR POSTPONED WHAT IS WORSE THE INDUSTRY'S SLUMP COMES AT A TIME OF CUTBACKS IN DEFENSE SPENDING AND MAJOR AIRBUS INROADS THE TWO COMMERCIAL AIRCRAFT BUILDERS BOEING AND MCDONNELL DOUGLAS CORP ALONG WITH OTHER AEROSPACE COMPANIES HAVE JETTISONED 340000 JOBS OVER THE PAST FOUR YEARS IN DETROIT MR CLINTON PROMISED A MACHINIST THAT HE ISN'T GOING TO ROLL OVER AND PLAY DEAD IN THE FACE OF THE AIRBUS CHALLENGE BUT SO FAR HE HAS MADE MOSTLY MODEST PROPOSALS HIS ECONOMIC PLAN CALLS FOR A 550 MILLION INCREASE IN AERONAUTICS RESEARCH AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION OVER FOUR YEARS WHICH WOULD LIFT SPENDING BY ABOUT 10 A YEAR RESEARCHERS THERE SAY THEY STILL DON'T KNOW WHAT THEY ARE SUPPOSED TO USE THE EXTRA MONEY FOR HE ALSO DECIDED TO KEEP BUILDING THE 30 BILLION SPACE STATION EVEN THOUGH MANY OF HIS ADVISERS CONSIDER THE PROJECT A TURKEY LARGELY TO PRESERVE AEROSPACE JOBS AND HE HAS INSTRUCTED US TRADE REPRESENTATIVE MICKEY KANTOR TO TRY TO RENEGOTIATE AN INTERNATIONAL AIRCRAFT AGREEMENT SO THAT THE FOUR EUROPEAN GOVERNMENTS WHICH NOW CAN PAY ONETHIRD OF DEVELOPMENT COST OF NEW AIRBUS AIRCRAFT WOULD HAVE TO REDUCE FUTURE SUBSIDIES US TRADE NEGOTIATORS HOPE THAT EUROPE WILL SEE IT IN THEIR INTEREST TO REDUCE SUBSIDY LEVELS AS A WAY TO BLOCK OTHER GOVERNMENTS RUSSIA OR JAPAN PERHAPS FROM CREATING THEIR OWN COMMERCIALAIRCRAFT INDUSTRY FOR THE MOST PART THOUGH THE PRESIDENT IS PLAYING FOR TIME BY USING THE OLDEST TRICK IN WASHINGTON APPOINTING A STUDY PANEL WHEN YOU ARE AT A LOSS ABOUT WHAT TO DO THE 15MEMBER COMMISSION IS EXPECTED TO MAKE RECOMMENDATIONS IN 90 DAYS ON HOW TO REVIVE AIRLINES AND AEROSPACE COMPANIES MR GORE SAYS THE WHITE HOUSE REVIEW WILL PARALLEL THE STUDY COMMISSION AND REPORT AT THE SAME TIME SEN JOHN DANFORTH REGARDS THE PANEL AS SOMETHING OF A 90DAY TIMEOUT I DON'T THINK IT TAKES A WIZARD TO DISCERN WHAT'S WRONG WITH THE AIRLINE INDUSTRY THE MISSOURI REPUBLICAN SAYS MCDONNELL DOUGLAS IS BASED IN ST LOUIS THE CONSENSUS IS THAT THE INDUSTRY HAS FOUR BASIC PROBLEMS TOO MUCH CAPACITY TOO LITTLE CAPITAL TOO MUCH DEBT AND WHEN IT COMES TO PRICING TOO LITTLE RESTRAINT FINDING SOLUTIONS IS ANOTHER MATTER THERE IS SO MUCH BAD BLOOD AMONG THE AIRLINES THAT BEYOND CERTAIN TYPES OF TAX AND REGULATORY RELIEF THEY CAN'T EVEN AGREE WHAT TO ASK THE GOVERNMENT FOR THE BIG THREE UAL CORP'S UNITED AIRLINES AMR CORP'S AMERICAN AIRLINES AND DELTA AIR LINES INC WANT TO THWART FOREIGN INVESTMENT IN US CARRIERS AND LIMIT THE TIME INSOLVENT CARRIERS CAN OPERATE UNDER BANKRUPTCYLAW PROTECTION THEIR WEAKER RIVALS WANT JUST THE OPPOSITE PRESIDENT BUSH WAS STUMPED TRYING TO HELP TROUBLED AIRLINES AFTER IRAQ INVADED KUWAIT AND FUEL PRICES SOARED PRESIDENT BUSH'S AIDES BEGAN LOOKING FOR WAYS TO STRENGTHEN THE CARRIERS BUT THEY COULDN'T FIND MUCH THAT WOULD HELP SHORT OF BALDLY SUBSIDIZING THE INDUSTRY SAYS JEFFREY SHANE THE TRANSPORTATION DEPARTMENT'S POLICY CHIEF UNDER PRESIDENT BUSH I WORRY ABOUT INFLATING EXPECTATIONS BEYOND ANY REASONABLE LEVEL HE ADDS PRESIDENT CLINTON FACES EQUALLY VEXING PROBLEMS IN FOLLOWING THROUGH ON HIS YEN TO HELP THE AIRCRAFT INDUSTRY SEN DANFORTH AND SEN MAX BAUCUS A MONTANA DEMOCRAT HAVE COSPONSORED LEGISLATION REQUIRING THE ADMINISTRATION TO LAUNCH A TRADE CASE AGAINST AIRBUS ON CHARGES OF UNFAIR SUBSIDIES SUCH ACTION COULD RESULT IN THE US PLACING STIFF TARIFFS ON AIRBUS IMPORTS BUT THAT WOULD PROVOKE EUROPE INTO RETALIATING WITH DIRE CONSEQUENCES FOR BOEING AND MCDONNELL DOUGLAS WHICH SELL FAR MORE PLANES IN EUROPE THAN AIRBUS SELLS IN THE US MAKING MATTERS EVEN MORE COMPLICATED AIRBUS PLANES USE USMADE JET ENGINES AND OTHER PARTS WHILE BOEING AND MCDONNELL DOUGLAS PLANES HAVE A LARGE NUMBER OF EUROPEAN COMPONENTS SO RETALIATION WOULD PENALIZE COMPANIES ON BOTH SIDES OF THE ATLANTIC IN BIZARRE WAYS AS AN ALTERNATIVE MR THUROW THE MIT ECONOMIST AND MS TYSON THE WHITE HOUSE ECONOMIST SUGGEST MATCHING AIRBUS SUBSIDIES WITH US AID YOU SAY YOU PLAY THAT WAY WE'LL PLAY THAT WAY TOO' SAYS MR THUROW BUT MS TYSON ALSO WARNS IN HER BOOK THAT SUCH TACTICS COULD STILL SPARK A TRADE WAR FOUGHT WITH SUBSIDIES INSTEAD OF TARIFFS ONE WAY OUT OF THIS BIND ADMINISTRATION OFFICIALS SAY IS TO DIRECT MOST AEROSPACE AID TO FUTURE TECHNOLOGY PROJECTS THIS WOULD HELP BOEING AND MCDONNELL DOUGLAS LEAPFROG FOREIGN RIVALS WITH EITHER A SUPERSONIC PASSENGER JET OR A JUMBOSIZED CONVENTIONAL AIRLINER TO BUILD THEM AIRCRAFT MAKERS WOULD NEED NEW COMPUTERDESIGN TECHNIQUES ULTRALIGHT MATERIALS AND ADVANCED ELECTRONICS SAYS JOHN GIBBONS PRESIDENT CLINTON'S SCIENCE ADVISER DEVELOPING SUCH TECHNOLOGIES WOULD FIT INTO THE PRESIDENT'S TECHNOLOGY PLANS IN THE PAST AIRCRAFT MAKERS HAVE ADAPTED MILITARY PLANES FOR CIVILIAN PURPOSES THE BOEING 747 WAS PATTERNED AFTER A DESIGN FOR A MILITARY CARGO PLANE FOR INSTANCE WITH THE SHRINKING OF THE DEFENSE BUDGET MR GIBBONS SAYS THE ADMINISTRAIS SEARCHING FOR WAYS TO PICK UP THE SLACK YOU FEEL THAT AVIATION IS YOUR BABY AND YOU CAN'T WASH YOUR HANDS OF IT MR GIBBONS SAYS BUT THE INDUSTRY HAS ITS OWN PLAN FOR KEEPING UP WITH ITS FOREIGN RIVALS ON NEW TECHNOLOGY JOIN THEM FOR INSTANCE BOEING HAS AGREED WITH AIRBUS'S MEMBER COMPANIES TO STUDY DEVELOPING A 600SEAT SUPERJUMBO JET BOEING FIGURES THAT SINCE THE WORLD MARKET WILL ONLY SUPPORT ONE SUCH MODEL SPENDING 10 BILLION ON DEVELOPMENT IS SENSELESS UNLESS SPREAD AMONG THE ENTIRE INDUSTRY THIS DEAL COULD PRESAGE THE FIRST TRULY GLOBAL AIRCRAFT VENTURE INVOLVING THE RUSSIANS AND JAPANESE TOO MEANWHILE CONGRESS IS CONSIDERING ANOTHER DANFORTHBAUCUS BILL TO CREATE A CONSORTIUM CALLED AEROTECH MODELED AFTER THE SEMICONDUCTOR CONSORTIUM SEMATECH WITH GOVERNMENT AND INDUSTRY EACH FINANCING HALF THE RESEARCH COSTS EXACTLY WHAT AEROTECH WOULD DO AND HOW MUCH IT WOULD COST HAVEN'T BEEN DECIDED BUT DURING HIS CONFIRMATION HEARING WILLIAM PERRY THE PENTAGON'S NO 2 OFFICIAL PRAISED AEROTECH AS A COMPELLING PROPOSAL AND MR GORE CALLS AN AEROSPACE CONSORTIUM A PRIORITY BUT CRITICS SAY AEROTECH COULD BECOME A HUGE FINANCIAL SINKHOLE SEN BAUCUS ENVISIONS AEROTECH AS CONDUCTING SMALL RESEARCH PROJECTS BUT OTHERS IN CONGRESS HAVE FAR MORE EXPANSIVE PLANS UNDER ONE SCENARIO AEROTECH WOULD BECOME A VEHICLE FOR TURNING MCDONNELL DOUGLAS INTO BOEING'S AIRFRAME SUPPLIER UNDER ANOTHER IT WOULD DEVELOP AN ENTIRELY NEW AIRCRAFT DON FUQUA PRESIDENT OF THE AEROSPACE INDUSTRIES ASSOCIATION CAUTIONS THAT IF THE CONSORTIUM DOES THIS IT MAY HAVE TO BRING IN FOREIGN COMPETITORS AS PARTNERS BECAUSE US COMPANIES ALREADY HAVE ALLIANCES WITH THEM THAT WOULD DEFEAT THE PURPOSE OF HELPING US COMPANIES GAIN A BIG RESEARCH EDGE MR CLARKSON THE BOEING EXECUTIVE SAYS WE'RE VERY GUARDED ABOUT AEROTECH BECAUSE IT COULD VIOLATE THE AIRBUS ACCORD CRITICIZED REPEATEDLY BY PRESIDENT CLINTON THAT LIMITS THE EXTENT TO WHICH GOVERNMENTS CAN SUBSIDIZE AIRCRAFT MAKERS ADDS ROBERT LAWRENCE A HARVARD ECONOMIST WE'RE CRITICIZING FOREIGNERS FOR SUBSIDIES AND WE'RE PLANNING TO DO THE SAME THING BOWMAN CUTTER DEPUTY DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL INSISTS THAT MR CLINTON WOULD BE CAUTIOUS ABOUT MATCHING SUBSIDY FOR SUBSIDY THAT'S NOT WHAT WE'RE ABOUT BUT THE HISTORY OF FEDERAL INVESTMENT IN AEROSPACE SUGGESTS OTHERWISE AT THE END OF THE VIETNAM WAR WHEN WASHINGTON WAS TRYING TO SAVE HIGHTECH JOBS THE NIXON ADMINISTRATION MADE TWO DISASTROUS DECISIONS ONE WAS TO BUILD THE SPACE SHUTTLE WHICH WAS MEANT TO COMMERCIALIZE FORAYS INTO SPACE BUT WHICH MAINLY SOAKED UP TENS OF BILLIONS OF DOLLARS INSTEAD THE OTHER WAS TO PROLONG THE SUPERSONIC TRANSPORT PROGRAM YEARS AFTER IT WAS CLEAR THE SST WOULD BE AN EARSPLITTING MONEY LOSER PICKING WINNERS OR LOSERS CAN BE DONE GREAT IN A VACUUM BUT POLITICS TEND TO SKEW WHAT WE DO SAYS PENNSYLVANIA REP WILLIAM CLINGER RANKING REPUBLICAN ON THE PUBLIC WORKS SUBCOMMITTEE ON AVIATION TOO OFTEN WE PROP UP LOSERS JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9303080048 930308 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION QUANTUM CHEMICAL CORP OFFERINGS OF 55 MILLION COMMON SHARES AND 250 MILLION IN PRINCIPAL AMOUNT OF FIRST MORTGAGE NOTES VIA DILLON READ & CO AND SALOMON BROTHERS INC AND BT SECURITIES INC RESOUND CORP AN INITIAL OFFERING OF 25 MILLION SHARES VIA MONTGOMERY SECURITIES FURMAN SALZ INC AND VOLPE WELTY & CO S3 INC AN INITIAL OFFERING OF TWO MILLION SHARES VIA LEHMAN BROTHERS AND COWEN & CO XTRA CORP OFFERING OF 650000 COMMON SHARES VIA GOLDMAN SACHS & CO AND WERTHEIM SCHRODER & CO 9303080047 930308 REVIEW & OUTLOOK EDITORIAL ASIDES POWER OF ATTORNEY THE LAWSUIT HAS COME TO BE THOUGHT OF AS THE ONLY WAY TO GET ACTION AGAINST THE MENACES WHO OCCUPY THE STREETS OF OUR CITIES IT'S NOW POPULAR TO SUE LANDLORDS AND SHOPKEEPERS WHOSE PROPERTY IS USED BY DRUGGIES AND DRUNKS NOW THE PARENTS OF A 20YEAROLD STUDENT AT BERKELEY HAVE SUED THE UNIVERSITY OF CALIFORNIA FOR LAX SECURITY IN THE STUDENT ACTIVITIES BUILDING WHERE THEIR DAUGHTER WAS SLAIN A YEAR AGO SEEMS THE HOMELESS HAVE HAD THE RUN OF ESHLEMAN HALL AND MUCH ELSE IN BERKELEY AS WE KNOW MANY OF THEM ARE DERANGED A SOCIETY THAT LETS ITS WORST ELEMENTS CONTROL ITS COMMUNAL TURF IS SURELY CRAZY TOO 9303080046 930308 BUSINESS BRIEF OREGON STEEL MILLS INC ACQUISITION OF CF&I STEEL BY PARTNERSHIP IS COMPLETED OREGON STEEL MILLS INC SAID A PARTNERSHIP IT CONTROLS COMPLETED ITS PURCHASE OF CF&I STEEL CORP IN A DEAL INCLUDING 925 MILLION IN CASH AND DEBT PLUS OREGON STEEL STOCK AND WARRANTS AND A GUARANTEED 40 MILLION CAPITAL INVESTMENT UNDER TERMS OF THE TRANSACTION CF&I STEEL LP WHICH IS 952 OWNED BY OREGON STEEL WILL PAY ABOUT 65 MILLION IN CASH AND 675 MILLION IN A 10YEAR NOTE TO CERTAIN CF&I CREDITORS CARRYING 95 INTEREST THE PARTNERSHIP WILL ALSO ASSUME 185 MILLION IN DEBT ACCUMULATED AFTER CF&I FILED FOR BANKRUPTCY PAY CERTAIN CF&I CREDITORS WARRANTS TO BUY 100000 SHARES OF OREGON STEEL COMMON STOCK FOR FIVE YEARS AT 35 A SHARE AND PAY CERTAIN CREDITORS 698400 SHARES OF OREGON STEEL COMMON STOCK AT THE END OF 10 YEARS THE PORTLAND ORE COMPANY SAID THE CASH PORTION OF THE DEAL WILL BE ADJUSTED IF CF&I'S CURRENT ASSETS ARE HIGHER OR LOWER THAN EXPECTED 9303080045 930308 MOVIE MAKERS SET TO CHALLENGE TAX PROPOSAL BY FOWLER W MARTIN SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE US MOTION PICTURE INDUSTRY IS PREPARING TO ARGUE THAT IT IS AN UNINTENDED VICTIM OF ONE OF PRESIDENT BILL CLINTON'S RECENT TAX PROPOSALS THE WHITE HOUSE CONTENDS THAT PREVAILING RULES TEND TO ENCOURAGE US MANUFACTURING COMPANIES TO LICENSE TECHNOLOGIES ABROAD RATHER THAN PRODUCE GOODS AT HOME FOR EXPORT AS A RESULT THE ADMINISTRATION HAS PROPOSED CHANGES TO A SECTION OF THE LAW THAT DETERMINES THE EXTENT TO WHICH COMPANIES CAN REDUCE THEIR US TAX LIABILITIES FOR TAXES THEY HAVE PAID TO FOREIGN GOVERNMENTS BUT THE CHANGES WOULD GO BEYOND MANUFACTURING AFFECTING AMONG OTHERS MOVIE MAKERS AND OTHER ENTERTAINMENT INDUSTRY CONCERNS THAT EARN SUBSTANTIAL SUMS ON PRODUCTIONS SHOWN ABROAD THAT'S A BIG MISTAKE SAID ROBERT COLE A PARTNER WITH COLE CORETTE & ABRUTYN AND AN AUTHORITY ON INTERNATIONAL TAX MATTERS THE GOVERNMENT'S PROPOSED RULE TIGHTENING CLEARLY SHOULDN'T APPLY TO MOVIES BECAUSE THE WAY THE US BENEFITS ECONOMICALLY FROM ITS CULTURE IS TO EXPORT IT OVERSEAS HE SAID ARGUING THAT FOREIGNERS CERTAINLY CAN'T BE EXPECTED TO COME HERE TO WATCH US MOVIES CURRENTLY CERTAIN ROYALTIES THAT WOULD GENERALLY BE CHARACTERIZED AS PASSIVE UNDER THE US TAX CODE CAN BE PLACED IN THE ACTIVE FOREIGN INCOME CATEGORY IF THEY ARE DEEMED TO STEM FROM THE ACTIVE CONDUCT OF A BUSINESS AN OPTION THAT OFTEN HAS BENEFICIAL TAX CONSEQUENCES THE ADMINISTRATION SEEKING TO KEEP JOBS BASED ON US MANFACTURING KNOWHOW AT HOME HAS PROPOSED TO DISALLOW SUCH BLENDING ALL ROYALTIES WOULD BE PLACED IN THE OFTEN LESS ATTRACTIVE CATEGORY OF PASSIVE FOREIGN INCOME UNDER THE NEW PLAN WE THINK IT'S UNFAIR SAID GEORGE SMITH A TAX EXPERT WITH UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC SUBSIDIARY THE MOVIE INDUSTRY ISN'T ENGAGED IN THE SORT OF PRACTICES THE TREASURY SAYS IT WANTS TO DETER AND IT IS A MISCONCEPTION TO CHARACTERIZE THE DISTRIBUTION OF US FILMS ABROAD AS A PASSIVE ACTIVITY HE SAID OTHERS AGREE AND THE MOTION PICTURE ASSOCIATION OF AMERICA HEADED BY JACK VALENTI IS PREPARING TO MAKE THE INDUSTRY'S CASE WITH BOTH THE ADMINISTRATION AND THE US CONGRESS' TAXWRITING COMMITTEES BUT IN ALL LIKELIHOOD IT WILL BE A LOWPROFILE EFFORT AT LEAST INITIALLY MR CLINTON HAS REPEATEDLY SOUGHT TO DEPICT ANY CRITICS OF HIS PROPOSALS THAT MIGHT EMERGE AS SPECIAL INTERESTS AND THE OPPONENTS OF CHANGE JUST HOW HARD THE INDUSTRY SHOULD FIGHT THE PLAN APPEARS TO BE DEBATEABLE SOME SAY THE ADDITIONAL TAX BITE WOULD BE SIGNIFICANT OTHERS CONTEND IT WOULDN'T EVERYONE AGREES THAT FOREIGN TAX MATTERS ARE EXTREMELY COMPLEX AND THAT THE BOTTOM LINE EFFECT OF A SINGLE CHANGE IS HARD TO QUANTIFY ON AN INDUSTRYWIDE BASIS ONE TAX AUTHORITY WHO BELIEVES THE INDUSTRY WILL BE HURT BY THE PROPOSED CHANGE IS JEFFREY TOLIN A TAX PARTNER IN LOS ANGELES WITH ERNST & YOUNG IT CERTAINLY IS NOT GOING TO HELP ANYONE HE SAID ARGUING THAT EVERY ENTERTAINMENT COMPANY THAT HAS FOREIGN ROYALTY SOURCE INCOME WILL BE AFFECTED IN CONTRAST SCHUYLER MOOR OF STROOCK & STROOCK & LEVAN PLAYED DOWN THE IMPORTANCE OF THE PROPOSED CHANGE IT JUST DOESN'T STRIKE ME AS THAT SIGNIFICANT HE SAID MR MOOR WHO COUNSELS FILM MAKERS ON HOW TO STRUCTURE THEIR FOREIGN OPERATIONS FOR TAX PURPOSES CONTENDED THAT IT IS POSSIBLE UNDER EXISTING LAW TO ALMOST ELIMINATE US TAXATION ON INCOME EARNED FROM DISTRIBUTING FILMS ABROAD 9303080044 930308 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9303080043 930308 INTERNATIONAL BRIEF BAYER AG CHEMICAL COMPANY TO CUT ITS SHIFTS FOR 3000 WORKERS THE GERMAN CHEMICAL GROUP BAYER AG ANNOUNCED IN LEVERKUSEN GERMANY THAT IT PLANNED TO PUT 3000 WORKERS ON SHORT SHIFTS IN THE COMING MONTHS CITING WORLDWIDE ECONOMIC WEAKNESS AND A RESULTANT DECLINE IN DEMAND IN VARIOUS BUSINESS AREAS THE COMPANY SAID IT WOULD INSTITUTE THE MEASURES AT ITS LEVERKUSEN BRUNSBUETTEL AND DORMAGEN PLANTS THE BULK OF THE SHORTENED HOURS WILL FALL IN LEVERKUSEN WHERE THE COMPANY HAS ITS HEADQUARTERS BAYER SAID THAT AS OF MAY SOME 1600 WORKERS IN ORGANIC CHEMICALS AND 1100 WORKERS IN COLORS AND DYES AT LEVERKUSEN WOULD BE WORKING SHORTER HOURS THE SHORT SHIFTS WILL BE INTRODUCED AT DIFFERENT TIMES THE COMPANY SAID NEGOTIATIONS WITH WORKERS' REPRESENTATIVE HAVE BEGUN OR WILL BEGIN SHORTLY BAYER SAID IT DIDN'T RULE OUT THAT FURTHER MEASURES MIGHT NEED TO BE TAKEN BAYER EMPLOYS AROUND 57000 PEOPLE IN GERMANY 9303080042 930308 ELECTROCOM'S STOCK SURGES 22 ON NEWS OF POSTAL SERVICE JOB DALLAS ELECTROCOM AUTOMATION INC'S STOCK ROSE 22 FRIDAY AFTER IT ANNOUNCED RECEIPT OF A 290 MILLION CONTRACT FROM THE US POSTAL SERVICE TO PRODUCE 1044 BARCODE SORTERS DURING THE NEXT 18 MONTHS THE COMPANY WILL PRODUCE THE SYSTEMS WHICH ARE CAPABLE OF SORTING AS MANY AS 40000 BARCODED LETTERS AN HOUR UNDER A LICENSE AGREEMENT WITH AEG ELECTROCOM OF GERMANY IBM FEDERAL SYSTEMS CO A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP WILL PRODUCE PART OF THE SYSTEMS AS A SUBCONTRACTOR TO ECA A SPOKESMAN FOR ELECTROCOM AUTOMATION SAID THE MAKER OF HIGHSPEED DOCUMENTPROCESSING SYSTEMS WILL RECEIVE ALL THE REVENUE FROM THE CONTRACT A SIGNIFICANT BOOST FOR A COMPANY THAT POSTED 1992 REVENUE OF 4698 MILLION THE COMPANY WILL RECEIVE 74 OF THE PROFIT WITH THE REMAINDER GOING TO AEG ELECTROCOM WHICH HAS A 26 INTEREST IN THE LIMITED PARTNERSHIP THAT CONTROLS ELECTROCOM AUTOMATION DELIVERIES ARE SCHEDULED TO BEGIN IN SEPTEMBER AND RUN THROUGH SEPTEMBER 1994 REACHING PEAK PRODUCTION OF ABOUT 20 MACHINES A WEEK THE COMPANY SAID THE POSTAL SERVICE HAS BEEN A VERY GOOD CUSTOMER OF ELECTROCOM IN JANUARY ELECTROCOM RECEIVED TWO CONTRACTS FROM THE QUASIFEDERAL AGENCY FOR AS MUCH AS 927 MILLION OF DOCUMENTPROCESSING SYSTEMS THE COMPANY ALSO IS IN THE FINAL STAGES OF DELIVERY ON AN EARLIER CONTRACT FOR BARCODE SORTERS IN FRIDAY'S TRADING ON THE NEW YORK STOCK EXCHANGE ELECTROCOM'S STOCK BEGAN TO RISE EARLY CLIMBING TO 15625 A SHARE FROM THURSDAY'S CLOSE OF 1425 BY THE TIME THE COMPANY MADE THE ANNOUNCEMENT AT 1215 PM THE STOCK CLOSED THE DAY AT 17375 A SHARE A SPOKESMAN SAID THE COMPANY COULDN'T EXPLAIN THE MORNING'S CLIMB IN ITS STOCK PRICE HE SAID ELECTROCOM WAS TRYING TO OBTAIN THE POSTAL SERVICE'S APPROVAL TO RELEASE THE NEWS FRIDAY MORNING WHEN IT NOTICED THE RISE IN ITS STOCK PRICE HE SAID THE COMPANY NOTIFIED THE BIG BOARD THAT IT ANTICIPATED SIGNIFICANT NEWS AND THE STOCK EXCHANGE HALTED TRADING IN THE STOCK FOR ABOUT AN HOUR 9303080041 930308 ECONOMY PAYROLLS JUMP FILLING IN GAP FOR RECOVERY US REPORTS 365000 JOBS CREATED IN FEBRUARY BUSINESSES STILL HESITANT BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEBRUARY'S SURPRISINGLY STRONG JOBS REPORT SUGGESTS THE US ECONOMY IS NOW IN A SOLID RECOVERY BUT THAT BUSINESSES ARE STILL TENTATIVE ABOUT THE FUTURE THE LABOR DEPARTMENT SAID A LONGAWAITED BURST OF JOB GROWTH OCCURRED LAST MONTH WITH 365000 NEW JOBS CREATED THE MOST THE ECONOMY HAS GENERATED IN ANY ONE MONTH SINCE JANUARY 1989 THE BIG RISE HELPED PUSH THE UNEMPLOYMENT RATE DOWN TO 7 FROM 71 IN JANUARY AND AN EIGHTYEAR HIGH OF 78 IN JUNE BUT MUCH OF THE GROWTH IN JOBS WAS ACCOUNTED FOR BY AN INCREASE IN PARTTIMERS AND TEMPORARY WORKERS SUGGESTING BUSINESSES ARE STILL HESITANT ABOUT ADDING NEW FULLTIME EMPLOYEES TO THEIR PAYROLLS THE NUMBER OF PEOPLE EMPLOYED PARTTIME FOR ECONOMIC REASONS REFERRED TO AS PARTIALLY UNEMPLOYED ROSE BY 348000 AND THE NUMBER OF WORKERS IN BUSINESS SERVICES WHICH CONSIST LARGELY OF TEMPORARY EMPLOYEES CLIMBED BY 46000 THE MISSING PART OF THE ECONOMIC PUZZLE WAS JOB GROWTH AND IN FEBRUARY WE SAW IT WITH A VENGEANCE SAID MICHAEL PENZER BANK OF AMERICA SENIOR ECONOMIST HOWEVER MANY ECONOMISTS WONDER WHETHER SUCH HEADY GROWTH WILL LAST COMPANIES ARE STILL FOCUSED ON TRYING TO INCREASE PRODUCTIVITY AND AREN'T LIKELY TO CONTINUE HIRING SCORES OF NEW WORKERS BUT THE GROWTH DOES SEEM TO SIGNAL THAT THERE WILL BE MORE NEW JOBS A MONTH ON AVERAGE THAN THE RECOVERY HAS MANAGED TO GENERATE SO FAR CLEARLY WE ARE IN A RECOVERY WE CAN FEEL AT THIS POINT JOB GAINS WILL BE STEADY AND WE WON'T HAVE TO WONDER SAID AUDREY FREEDMAN PRESIDENT OF MANPOWER PLUS AN EMPLOYMENT CONSULTING FIRM THE IMPRESSIVE JOB GAINS HOWEVER DIDN'T MAKE THE CLINTON ADMINISTRATION ABANDON ITS ECONOMICSTIMULUS PLAN THE CLINTON TEAM HAS SAID THAT THE MAIN REASON STIMULUS IS NEEDED DESPITE THE RECENT IMPROVEMENTS IN INDUSTRIAL PRODUCTION FACTORY ORDERS AND CONSUMER SPENDING IS THAT JOB GROWTH HAS BEEN NOTICEABLY ABSENT FROM THE PICTURE WE CERTAINLY CANNOT DECLARE A VICTORY NOW PRESIDENT CLINTON SAID IN HIS RADIO ADDRESS TO THE NATION SATURDAY FOR WHILE EMPLOYMENT IS EDGING UP UNEMPLOYMENT IS STILL HIGHER THAN IT WAS AT THE DEPTHS OF THIS RECESSION AND MOST OF THE NEW JOBS BEING CREATED PAY PARTTIME WAGES AND RARELY PROVIDE WORKERS WITH THE HEALTHCARE COVERAGE FAMILIES NEED IN FEBRUARY JOBS WERE CREATED ACROSS ALL SECTORS THOUGH IN SOME INDUSTRIES MORE THAN OTHERS RETAIL TRADE AND SERVICE SECTORS EACH ADDED 131000 NEW JOBS TO THEIR PAYROLLS THE CONSTRUCTION SECTOR WHICH HAD BEEN BESIEGED WITH JOB LOSSES IN RECENT MONTHS BECAUSE OF POOR WEATHER ADDED 96000 POSITIONS MANUFACTURERS ADDED 10000 NEW WORKERS THOUGH THE NUMBERS ADDED IN THE INDUSTRIAL SECTOR WERE RATHER SMALL THE AVERAGE FACTORY WORKWEEK INCREASED BY 01 HOURS TO 415 HOURS KEEPING IT AT THE HIGHEST LEVEL IN MORE THAN 26 YEARS FACTORY OVERTIME REACHED 42 HOURS THE HIGHEST LEVEL ON RECORD THESE EXTRAORDINARILY HIGH NUMBERS MEAN THE GROWTH IN MANUFACTURING WILL BE SUSTAINED AND WILL INCREASE MS FREEDMAN SAID MANY RETAILERS PARTICULARLY ONES SPECIALIZING IN THE OFFPRICE MARKET SAY THEY ARE GEARING UP TO HIRE NEW EMPLOYEES ROSS STORES INC RECENTLY ANNOUNCED IT WILL OPEN EIGHT NEW STORES NATIONWIDE ADDING 30 TO 35 NEW WORKERS TO EACH ONE JOS A BANK CLOTHIERS INC A CLASSIC MEN'S AND WOMEN'S CLOTHING CHAIN IS PLANNING TO HIRE 150 NEW PEOPLE FOR 10 NEW STORES IT IS OPENING THIS YEAR OUR BUSINESS HAS BEEN FAR SUPERIOR TO WHAT WE EVER THOUGHT IT WOULD BE THAT'S WHY WE ARE HIRING ALL THESE PEOPLE SAID CHAIRMAN TIMOTHY FINLEY IT'S HARD TO TELL WHICH REGIONS OF THE COUNTRY WERE THE BIGGEST BENEFACTORS OF INCREASED JOB GROWTH LAST MONTH THAT'S BECAUSE THE STATE PAYROLL DATA ARE TWO MONTHS BEHIND BUT STANLEY DUOBINIS HEAD OF REGIONAL ECONOMICS FOR THE WEFA GROUP SAID JOB GROWTH IN NOVEMBER AND DECEMBER WAS CONCENTRATED IN NONCOASTAL STATES SUCH AS IOWA NEBRASKA AND TEXAS I GUESS THE REASON THIS DATA HAS PICKED UP SO MUCH IS BECAUSE THE EAST COAST STATES HAVE FINALLY KICKED IN AS WELL HE SAID THAT WOULD BE THE BIG TURNAROUND WE'VE ALL BEEN LOOKING FOR ECONOMISTS SAID THAT CALIFORNIA WHICH HAS BEEN WEIGHING DOWN THE EMPLOYMENT DATA FOR SOME TIME HAS PROBABLY STABILIZED SOMEWHAT THERE WERE A FEW NOTES OF CAUTION ON THE EMPLOYMENT REPORT FOR ONE JANUARY'S JOB GAIN OF 106000 WAS REVISED TO ONLY A 44000 INCREASE ALSO THE GAINS IN RETAIL TRADE RESULTED PARTLY FROM SEASONAL ADJUSTMENTS RETAILERS HIRED FEWER PEOPLE THAN USUAL THIS PAST HOLIDAY SELLING SEASON AND THEREFORE HAD FEWER TO LAY OFF SPECIAL FACTORS DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY SAID THAT IF SPECIAL FACTORS ARE CONSIDERED EMPLOYMENT WOULD HAVE PROBABLY GROWN BY 165000 WHILE ANALYSTS DON'T EXPECT THE HEADY STRENGTH OF FEBRUARY'S EMPLOYMENT REPORT TO CONTINUE MANY SAY THE ECONOMY HAS CERTAINLY BEGUN TURNING THE CORNER SOMETHING GOOD IS DEFINITELY GOING ON HERE MR DUOBINIS SAID SEPARATELY THE FEDERAL RESERVE SAID CONSUMERS EXPANDED THEIR CREDIT BY 904 MILLION OR AT A 15 ANNUAL RATE IN JANUARY ALL OF THE GAINS CAME FROM BANK AND CREDITCARD LOANS WHICH JUMPED AT A 94 ANNUAL RATE LOANS FOR AUTOMOBILES FELL AT A 25 RATE AND LOANS IN A CATCHALL CATEGORY THAT INCLUDES LOANS FOR VACATIONS SCHOOLING AND TAX PAYMENTS DROPPED AT A 29 RATE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR JANUARY IN BILLIONS AND PERCENTAGE CHANGES FROM DECEMBER AT AN ANNUAL RATE 9303080040 930308 LETTERS TO THE EDITOR SPORTS FAME & FORTUNE ANOTHER JOCK MYTH IN THE MYTH OF THE DUMB JOCK EDITORIAL PAGE FEB 2 LINO DICUOLLO SUGGESTS THERE IS A DIFFICULT CHOICE BETWEEN ACADEMICS AND ATHLETICS AT THE COLLEGE LEVEL BECAUSE CONCENTRATING ON SPORTS MAY LEAD TO FORTUNE THAT TOO IS A MYTH THE ODDS OF A YOUNG MAN REACHING THE PROFESSIONAL RANKS ARE REMOTE OF THE 52000 YOUNG MEN PLAYING DIVISIONONE COLLEGE FOOTBALL THIS YEAR 330 WILL BE DRAFTED INTO THE NATIONAL FOOTBALL LEAGUE ONLY 125 WILL MAKE THE TEAM THERE'S ALSO A RISK THAT A YOUNG ATHLETE'S CAREER WILL BE ENDED BY AN INJURY ON THE FIELD OR CUT SHORT IN DOZENS OF WAYS THE TIME TO PREPARE FOR A CAREER BEYOND SPORTS EVEN IF AN ATHLETE IS GIFTED IS THE FIRST DAY OF SCHOOL THOSE OF US WHO ARE PRIVILEGED TO PLAY PROFESSIONAL SPORTS HAVE AN OBLIGATION TO SERVE AS ROLE MODELS NOT JUST WHAT WE SAY ON CAMERA BUT WHAT WE DO WITH OUR LIVES I SPEND TIME IN THE SCHOOLS AND WORK WITH CORPORATIONS THAT NEED HELPING GETTING THIS MESSAGE TO OUR YOUNGSTERS THE FACTS SPEAK FOR THEMSELVES BY THE YEAR 2000 HALF OF ALL JOBS WILL REQUIRE EDUCATION BEYOND HIGH SCHOOL MOST OF THEM WILL BE FILLED BY COLLEGE GRADUATES MORE JOBS ALSO WILL REQUIRE TECHNICAL SKILLS THE OTHER SOCIAL COSTS ARE STAGGERING THE FUNCTIONALLY ILLITERATE MAKE UP 70 OF THE UNEMPLOYED 68 ARRESTED FOR CRIMES AND 83 OF THE PRISON POPULATION THE FAILURE TO PREPARE FOR THE FUTURE IS A NATIONAL PROBLEM THE IDEA THAT ATHLETICS IS A SURE TICKET TO FAME AND FORTUNE IS A DELUSION TRY TO BE THE BEST IF YOU MAKE IT BE READY FOR LIFE AFTER ATHLETICS IF YOU DON'T JUST BE READY TO WIN AT THE GAME OF LIFE MR TILLMAN GRADUATED FROM THE UNIVERSITY OF OKLAHOMA WHERE HE WAS AN ALLAMERICAN RUNNING BACK HE PLAYS PROFESSIONAL FOOTBALL FOR THE HOUSTON OILERS AND IS A SPORTS BROADCASTER FOR KPRCTV IN HOUSTON THE ARTICLE WAS EXCELLENT MANY OF US IN THE EDUCATION FIELD HAVE SEEN CASES IN WHICH STUDENTS ESPECIALLY YOUNG MEN RESPOND NOT ONLY TO NEGATIVE PEER PRESSURE BUT ALSO TO A WIDELY SHARED PERCEPTION THAT INDEED AS MR DICUOLLO WRITES SO WELL BECOMES A SELFFULFILLING PROPHECY MY OWN RECENT EXPERIENCES DISPROVE THE MYTH SEVERAL OF MY MOST SUCCESSFUL TEACHING ASSISTANTS IN THE PAST FEW YEARS HAVE BEEN ATHLETES MALE AND FEMALE ONE IS NOW A GRADUATE STUDENT IN HISTORY AND ANOTHER IS A HIGH SCHOOL HISTORY TEACHER AND BASKETBALL COACH AND FOR THE PAST TWO YEARS THE WINNER OF OUR AWARD FOR THE BEST SENIOR IN HISTORY HAS BEEN A VARSITY BASKETBALL PLAYER TEACHERS AND STUDENTS ALIKE SHOULD BEWARE THE MYTH OF THE DUMB JOCK AND WORK TO ENCOURAGE THE BETTER ANGELS AND GREAT POTENTIAL IN HUMAN BEINGS 9303080039 930308 LEISURE & ARTS BOOKSHELF A DIPLOMATIC VIEW OF COMMUNISM'S FALL BY GERALD F SEIB THE GREAT UNANSWERED QUESTION ABOUT GEORGE BUSH IS WHETHER HISTORY WILL PRAISE HIM FOR MANAGING A PEACEFUL END TO THE COLD WAR DISPARAGE HIM FOR CLINGING TO THE STATUS QUO TOO LONG OR LABEL HIM AS A MERE BYSTANDER AS EVENTS UNFOLDED AMID THE EUPHORIA OF THE COLLAPSE OF THE SOVIET EMPIRE IT WAS EASY TO IMAGINE THAT MR BUSH WOULD BE SEEN AS A SHREWD MASTER OF THE UNIVERSE COYLY MANIPULATING WORLD EVENTS TO AMERICA'S BENEFIT DURING LATER BUMBLING ATTEMPTS TO HANDLE THE SHIFT IN POWER AWAY FROM SOVIET PRESIDENT MIKHAIL GORBACHEV TO RUSSIAN PRESIDENT BORIS YELTSIN IT WAS EASY TO VIEW MR BUSH AS A HOPELESS ANACHRONISM WHO SIMPLY DIDN'T GRASP THE POWERFUL FORCES SURGING AROUND HIM NOW THERE'S A RICH NEW BODY OF MATERIAL TO HELP SORT OUT THOSE OVERSIMPLIFIED IMAGES HISTORIAN MICHAEL R BESCHLOSS AND FORMER TIME MAGAZINE COLUMNIST STROBE TALBOTT PRESENT A STUNNINGLY DETAILED ACCOUNT OF THE TANGLED RELATIONSHIP BETWEEN MR BUSH AND MR GORBACHEV IN AT THE HIGHEST LEVELS THE INSIDE STORY OF THE END OF THE COLD WAR LITTLE BROWN 498 PAGES 2495 THE BOOK IS PARTICULARLY INTRIGUING BECAUSE MR TALBOTT A COLLEGE CHUM OF BILL CLINTON'S HAS TAKEN CHARGE OF THE VERY POLICY DEBATES THE BOOK CHRONICLES NOW IN THE STATE DEPARTMENT HE IS EXPECTED TO MANAGE DEALINGS WITH RUSSIA AND THE OTHER SOVIET REPUBLICS FOR THIS BOOK HE AND MR BESCHLOSS HELD CONFIDENTIAL TALKS WITH OFFICIALS IN MOSCOW AND WASHINGTON OVER A THREEYEAR PERIOD ON THIS BASIS THEY TAKE US INSIDE THE WORKINGS OF SUPERPOWER DIPLOMACY THROUGH THE COLLAPSE OF THE WARSAW PACT THE UNIFICATION OF GERMANY THE GULF WAR AND THE ULTIMATE DISINTEGRATION OF THE SOVIET UNION THEY QUOTE DIALOGUE FROM IMPORTANT MEETINGS RELAY PERSONAL LETTERS EVEN RECOUNT A POIGNANT CHRISTMAS DAY TELEPHONE CALL FROM MR GORBACHEV TO MR BUSH IN 1991 AS THE SOVIET LEADER WAS ABOUT TO RESIGN MADDENINGLY THOUGH THE AUTHORS OFFER LITTLE ANALYSIS OF WHETHER THE WORLD WAS WELLSERVED BY THE WAY THESE TWO LEADERS HANDLED THE AWESOME EVENTS THAT UNFOLDED BEFORE THEM IT'S HARD TO TELL WHETHER MESSRS BESCHLOSS AND TALBOTT THINK THE TWO DID A GOOD BAD OR MIDDLING JOB THOUGH ONE SUSPECTS THE AUTHORS WOULDN'T EXACTLY ENDORSE THIS CONCLUSION THE EVIDENCE LAID OUT HERE SUGGESTS THAT HISTORY WILL BE REASONABLY GENEROUS TO MR BUSH WHILE NO GREAT INNOVATOR OR VISIONARY MR BUSH DID HANDLE THE BLUSTERY MR GORBACHEV IN A WAY TO PULL CONCESSION AFTER CONCESSION FROM HIM UNTIL HE WAS VIRTUALLY SUCKED DRY AT ONE POINT FOR INSTANCE MR BUSH AGREED TO SIGN A TRADE TREATY MR GORBACHEV DESPERATELY WANTED YET SUCCESSFULLY LINKED THE TREATY TO PASSAGE OF A LONGSOUGHT LAW ALLOWING SOVIET CITIZENS TO EMIGRATE IT WASN'T EVEN CLEAR THAT MR GORBACHEV REALIZED HE HAD MADE THE BIGGER CONCESSION MR BUSH OPENED HIS RELATIONSHIP WITH MR GORBACHEV ON A CYNICAL NOTE HE HOPPED INTO A LIMOUSINE WITH THE SOVIET LEADER IN 1987 AND INFORMED HIM THAT IN ORDER TO WIN THE 1988 PRESIDENTIAL ELECTION HE WOULD BE SPOUTING SOME HARSH CAMPAIGN RHETORIC TO APPEAL TO RIGHTWINGERS IN THE REPUBLICAN PARTY HE ASKED MR GORBACHEV TO IGNORE THAT RHETORIC THEN AFTER WINNING THE ELECTION MR BUSH INEXPLICABLY CLUNG TO HIS SKEPTICAL STANCE FOR SEVERAL MORE MONTHS FINALLY AT A SUMMIT ABOARD SHIPS MOORED OFF MALTA MR BUSH OPENED UP PROMISING TO HELP MR GORBACHEV'S REFORMS SUCCEED IT APPEARS THAT NEITHER MR BUSH NOR MR GORBACHEV HAD ANY REAL IDEA WHERE THIS PROCESS SHOULD LEAD THROUGHOUT MR BUSH'S PRIMARY INTEREST WAS IN KEEPING THE WORLD STABLE NOT IN CRUSADING FOR THE LIBERATION OF SOVIET LANDS BUT MR BUSH TURNED OUT TO BE EITHER LUCKY OR SMART BY DECIDING AGAINST PRODDING MR GORBACHEV TOO HARD MR BUSH SET UP A RELATIONSHIP IN WHICH THE SOVIET LEADER GAVE GROUND TIME AFTER TIME ABOVE ALL MR BUSH AND SECRETARY OF STATE JAMES BAKER SUCCEEDED IN CONVINCING SKITTISH WEST EUROPEANS AND SOVIETS ALIKE TO AGREE TO THE UNIFICATION OF GERMANY ON A TIMETABLE FAR FASTER THAN ANYONE ONCE IMAGINED IN MANY WAYS THOUGH THE REAL HERO OF THIS STORY TURNS OUT TO BE NOT MR BUSH OR MR GORBACHEV AT ALL BUT FORMER SOVIET FOREIGN MINISTER EDUARD SHEVARDNADZE HE HAD A CLEARER VISION THAN HIS BOSS OF HOW TO DISMANTLE THE SOVIET SYSTEM AND HOW TO ENLIST HIS AMERICAN FRIENDS IT WAS HE WHO KEPT THE SOVIET AND AMERICAN DIALOGUE INTACT DURING THE TENSE WAR AGAINST IRAQ WHEN THE FRAGILE NEW RELATIONSHIP WAS FAR CLOSER TO RUPTURING THAN WAS COMMONLY REALIZED AT THE TIME BUT IN THE END THIS BOOK DOESN'T PONDER A CRUCIAL QUESTION WHAT MIGHT HAVE TURNED OUT DIFFERENTLY HAD MR BUSH BEEN BOLDER IN PUSHING FOR MORE DEMOCRATIZATION AND TRUER REFORM IN MR GORBACHEV'S SOVIET UNION WOULD MR YELTSIN BE STANDING ON FIRMER POLITICAL LEGS TODAY WITH A MORE ROBUST RUSSIAN ECONOMY AT HIS DISPOSAL OR WOULD A MORE AGGRESSIVE US STRATEGY HAVE BROUGHT MR GORBACHEV'S POLITICAL HOUSE OF CARDS TUMBLING DOWN FASTER PRODUCING A HARDLINE COUP THAT ACTUALLY WOULD HAVE STOPPED THE REFORM PROCESS MR SEIB IS NATIONAL POLITICAL CORRESPONDENT IN THE JOURNAL'S WASHINGTON BUREAU 9303080038 930308 MARRIOTT SAID TO PROPOSE ALTERING PLAN TO SPLIT INTO HOTEL REAL ESTATE UNITS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL MARRIOTT CORP WIDELY CRITICIZED FOR ITS PLAN TO SPLIT THE CONCERN INTO A PROFITABLE HOTEL MANAGEMENT ARM AND A REAL ESTATE ARM LOADED WITH DEBT IS NOW OFFERING TO AMEND THE PROPOSAL ACCORDING TO AN ATTORNEY FAMILIAR WITH TALKS BETWEEN THE COMPANY AND ITS BONDHOLDERS DANIEL KRASNER A LAWYER REPRESENTING ABOUT 2000 BONDHOLDERS SAID HE LEARNED ABOUT THE PROPOSAL FROM DISCUSSIONS WITH RICHARD M MEYER AN ATTORNEY WHO HEADS THE NEGOTIATING TEAM REPRESENTING MARRIOTT'S INSTITUTIONAL INVESTORS MR MEYER DECLINED TO COMMENT THOUGH HE COULDN'T PROVIDE SPECIFIC DETAILS ABOUT THE PROPOSAL MR KRASNER SAID IT INVOLVED SHIFTING A SUBSTANTIAL AMOUNT OF DEBT BACK TO MARRIOTT'S HOTEL ARM FROM THE REAL ESTATE UNIT I UNDERSTAND THAT IS PART OF A PLAN THAT IS BEING PROPOSED BUT NOT EVERYBODY IS ON BOARD SAID MR KRASNER AS OF FRIDAY THEY HAVE NOT COME UP WITH A PLAN THAT SATISFIES EVERYONE ON SATURDAY THE WASHINGTON POST REPORTED THAT MARRIOTT PROPOSED LAST WEEK TO SHIFT 700 MILLION OF DEBT BACK TO THE HOTEL UNIT THE PROPOSAL INCLUDED A PROMISE TO PAY BONDHOLDERS A HIGHER INTEREST RATE IN EXCHANGE FOR A FOURYEAR EXTENSION OF THE REPAYMENT PERIOD THE POST REPORTED BUT BRUCE MENDELSOHN AN INVESTMENT BANKER FAMILIAR WITH THE NEGOTIATIONS SAID THE AMOUNT PROPOSED TO BE TRANSFERRED WAS FAR LESS MY UNDERSTANDING OF THE ACTUAL AMOUNT THAT MARRIOTT IS IMPROVING THE TERMS OF THE TRANSACTION IS LESS THAN HALF OF 700 MILLION MR MENDELSOHN SAID SUBSTANTIAL TRANSACTION COSTS THAT MARRIOTT HAD NOT PREVIOUSLY ANNOUNCED ARE FURTHER ERODING THAT 700 MILLION NUMBER A MARRIOTT SPOKESMAN DECLINED TO PROVIDE DETAILS ABOUT THE PROPOSAL WE'RE ACTIVELY TALKING BUT UNTIL WE SIGN AN AGREEMENT IT'S NOT WORTH COMMENTING ON HE SAID THE SPOKESMAN SAID TALKS REVOLVED AROUND SOME FORM OF MODIFICATION THAT WOULD SATISFY THE BONDHOLDERS WHILE STILL ALLOWING THE COMPANY TO SPLIT INTO TWO SEPARATE UNITS THE PROPOSAL HAS BEEN STALLED BY INSTITUTIONAL INVESTORS WHO DON'T FEEL ENOUGH DEBT IS BEING TRANSFERRED BACK TO THE HOTEL UNIT ACCORDING TO MR KRASNER THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE TEACHERS INSURANCE AND ANNUITY ASSOCIATION AND INVESTORS DIVERSIFIED SERVICES ARE THE INSTITUTIONAL INVESTORS WITHHOLDING THEIR APPROVAL MARRIOTT FIRST PROPOSED BREAKING THE COMPANY INTO TWO PIECES IN OCTOBER THAT PLAN WOULD HAVE SADDLED THE REAL ESTATE UNIT WITH ALMOST ALL OF THE COMPANY'S 28 BILLION OF DEBT IN DECEMBER MARRIOTT OFFERED TO REVISE THE PLAN AFTER SOME BONDHOLDERS SUED THE COMPANY OVER THE PROPOSAL THOSE SUITS ARE PENDING 9303080037 930308 LETTERS TO THE EDITOR ON AN ORDINARY DAY YOU CAN COUGH FOREVER YOUR FEB 10 ARTICLE TO DENVER'S DISMAY ITS SMOG IS BACK SHOULD HAVE BEEN TITLED TO DENVER'S DISMAY ITS SMOG NEVER WENT AWAY WE'VE GIVEN UP OUR BACKYARD INCINERATORS ESSENTIALLY HAVE GIVEN UP USE OF WOODBURNING FIREPLACES WE ARE COMPELLED TO USE CONTROVERSIAL ADDITIVES TO OUR GASOLINE AND WE HAVE NO DRIVE DAYS YET THE QUALITY OF OUR AIR CONTINUES TO DETERIORATE YOU APPARENTLY BELIEVE OUR POLLUTION PROBLEM PEAKED IN 19851986 THE ONLY THING THAT CHANGED WAS THE SCALE INTERPRETATION WHEN DENVER WAS FACED WITH THE LOSS OF HIGHWAY FUNDS BECAUSE OF ITS SMOG A COUPLE OF ITS POLITICAL TYPES FLEW TO WASHINGTON AND VOILA SUDDENLY OUR NUMBER OF DAYS OF DANGEROUSLY HIGH LEVELS OF POLLUTANTS WAS DECIMATED AND LO AND BEHOLD DENVER GOT ITS HIGHWAY FUNDS DENVER IS STILL TAKING STEPS TO ENSURE ITS POLLUTION PROBLEM WILL REMAIN WITH US IT IS ABOUT TO CONSTRUCT A BASEBALL STADIUM IN THE HEART OF ONE OF ITS MOST POLLUTED AREAS AS MANY AS 45000 BREATHERS WILL FILE IN THERE ON PERHAPS 80 DAYS A YEAR MANY ARRIVING VIA VEHICLES NOT CONTENT WITH THAT THE CITY IS CONSTRUCTING A NEW AIRPORT THAT WILL REQUIRE THREE TIMES AS MUCH DRIVING TO REACH AS THE CURRENT STAPLETON AIRPORT I WON'T GO INTO DETAIL ABOUT OUR LUMBERING SMELLY DIESELPOWERED REGIONAL TRANSPORTATION DISTRICT WHAT A MESS THERE IS NO WAY EVERYDAY CITIZENS CAN PROVE OR DISPROVE WHAT HAS REALLY HAPPENED TO OUR AIR QUALITY ALL WE CAN DO IS LOOK TO THE WEST AND ON MANY DAYS WONDER WHERE HAVE THE MOUNTAINS GONE 9303080036 930308 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ZAMBIA IS OFFERING TO SELL OFF MORE THAN 150 COMPANIES WHICH REPRESENT 80 OF THE SOUTHERN AFRICAN COUNTRY'S ECONOMY MULTINATIONALS THAT HAD OWNED THE ASSETS NATIONALIZED IN THE 1960S AND 1970S WILL HAVE FIRST CRACK AT BUYING THEM BACK THE FIVEYEAR PRIVATIZATION PROGRAM CALLS FOR 12 ROUNDS OF SELLOFFS INCLUDING MANUFACTURERS FARMS NEWSPAPERS ZAMBIA AIRWAYS AND THE GIANT ZAMBIAN CONSOLIDATED COPPER MINES LTD IN THE FIRST ROUND 19 SMALLER COMPANIES ARE SCHEDULED TO BE SOLD BY JUNE THE PROGRAM IS OPEN TO INSTITUTIONAL CORPORATE AND PRIVATE INVESTORS WITH NO RESTRICTIONS ON HOLDINGS THOUGH THE GOVERNMENT MAY RETAIN STAKES IN SOME FIRMS SALES WON'T NECESSARILY GO TO THE HIGHEST BIDDERS AS CRITERIA ALSO INCLUDE DEVELOPMENT AND EMPLOYMENT PLANS ZAMBIA WILL USE PROCEEDS TO REDUCE DEBT FUND SOCIAL PROGRAMS AND UPGRADE COMPANIES TO BE SOLD IN LATER ROUNDS HONG KONG SAID ANY US REVOCATION OF CHINA'S MOSTFAVOREDNATION TRADING STATUS WOULD COST THE BRITISH COLONY AS MUCH AS 166 BILLION HONG KONG DOLLARS US2147 BILLION IN LOST TRADE IT ALSO ESTIMATED AS MUCH AS HK23 BILLION IN SHORTTERM REVENUE LOSSES AND 69000 JOB LOSSES BEIJING'S PREFERENTIAL TRADE STATUS AFFECTS HONG KONG DIRECTLY BECAUSE OF MAJOR EXPORT LINKS WITH CHINA'S ECONOMY HONG KONG ARGUES THAT CHINA'S HUMANRIGHTS RECORD THE BIG OBSTACLE IN THE US TRADE DECISION TO BE MADE BY JUNE 3 SHOULD BE SEPARATE FROM ECONOMIC POLICIES LATVIA REVIVED ITS PRESOVIET CURRENCY THE LAT WHICH BY SUMMER WILL REPLACE THE BALTIC REPUBLIC'S RUBLE THAT REPLACED THE RUSSIAN RUBLE LAST JULY AS INFLATION HAS FALLEN TO 25 A MONTH AND THE LATVIAN RUBLE STRENGTHENED AGAINST THE DOLLAR BANKS BEGAN CIRCULATING A FIVELAT BILL WITH OTHER DENOMINATIONS TO FOLLOW THE VALUE OF ONE LAT WAS SET AT 200 LATVIAN RUBLES WHICH TRADE AT 155 TO THE DOLLAR SEPARATELY RUSSIA WILL COMPLETE REPLACING SOVIETERA BILLS BY THE END OF APRIL WITH NEW BRIGHTLY COLORED RUBLE NOTES RUSSIA AGREED TO LIFT RESTRICTIONS ON OIL SUPPLIES TO UKRAINE TO ENSURE THAT REPUBLIC SUFFICIENT FUEL FOR THE SPRING PLANTING SEASON UKRAINE THE BREADBASKET AND INDUSTRIAL BELT OF THE FORMER SOVIET UNION IS DEPENDENT ON RUSSIAN OIL SUPPLIES THE TWO REPUBLICS ALSO AGREED TO FURTHER TALKS IN THEIR DISPUTE OVER UKRAINE'S DISCOUNTED PAYMENTS FOR NATURAL GAS WHICH RUSSIA HAD THREATENED TO SHUT OFF RUSSIA WANTS UKRAINE TO PAY WORLD MARKET RATES THE DISPUTE THREATENS SUPPLIES TO WESTERN EUROPEAN CUSTOMERS RESPONDING TO SIGNS OF IMPROVING CHINESEBRITISH RELATIONS HONG KONG GOV CHRIS PATTEN AGAIN DELAYED INTRODUCING HIS POLITICAL REFORM PLANS FOR THE BRITI COLONY BEFORE ITS REVERSION TO CHINESE SOVEREIGNTY IN 1997 HE TOLD LEGISLATORS FRIDAY THAT CHINA HAD RESPONDED FAVORABLY TO THE PRINCIPLE OF HIGHERLEVEL NEGOTIATIONS THOUGH IT HADN'T FORMALLY AGREED TO THEM FOR THE FOURTH TIME IN AS MANY WEEKS MR PATTEN IN A CONCILIATORY MOVE DEFERRED LEGISLATIVE PUBLICATION OF THE PROPOSALS A STEP TOWARD A VOTE ON BROADER DEMOCRATIC PARTICIPATION OPPOSED BY CHINA ABOUT 50000 FARMERS RALLIED IN MADRID FRIDAY CAPPING A TWOWEEK PROTEST MARCH TO DEMAND MORE SPANISH GOVERNMENT AID TO IMPROVE AGRICULTURAL COMPETITIVENESS IN THE EUROPEAN COMMUNITY SPAIN'S FARM SECTOR HAS DEBT OF 2 TRILLION PESETAS 1697 BILLION INCOME OF SPAIN'S 12 MILLION FARMERS FELL AN INFLATIONADJUSTED 8 LAST YEAR AS PRICES SLUMPED BECAUSE OF INCREASED IMPORTS OF CHEAPER EC FARM PRODUCTS AND MORE THAN 100000 PEOPLE QUIT FARMING FARMERS MAKE UP 11 OF SPAIN'S POPULATION WHICH THE GOVERNMENT WANTS TO CUT TO THE 6 AVERAGE IN THE EC SWISS VOTERS IN A REFERENDUM OPTED TO RELAX CURBS ON GAMBLING AND RAISE GAS PRICES BY ONE FIFTH ANSWERING THE GOVERNMENT'S PLEA FOR MORE REVENUES NEARLY 120 YEARS AFTER CASINOS WERE FIRST OUTLAWED BY THE CONSTITUTION 72 OF VOTERS YESTERDAY ACCEPTED GOVERNMENT PROPOSALS TO DROP MOST RESTRICTIONS TO THE DELIGHT OF THE TOURIST INDUSTRY THE GOVERNMENT HOPES TO USE THE ANTICIPATED ANNUAL REVENUES OF 150 MILLION SWISS FRANCS 9872 MILLION ON SOCIAL SECURITY JUST 54 OF VOTERS FAVORED A GAS TAX INCREASE THE FIRST SINCE 1936 EQUIVALENT TO 13 US CENTS A LITER THE TAX IS EXPECTED TO BOOST GOVERNMENT REVENUES BY ABOUT 13 BILLION FRANCS PER YEAR TO BE USED TO IMPROVE ROADS AND OFFSET THE FEDERAL BUDGET DEFICIT ON A THIRD ISSUE THE ELECTORATE REJECTED A PROPOSAL TO BAN ALL ANIMAL EXPERIMENTS BY A 72TO28 MARGIN ANIMAL RIGHTS ACTIVISTS IMMEDIATELY ANNOUNCED PLANS TO FORCE ANOTHER REFERENDUM FOR A 10YEAR MORATORIUM ON EXPERIMENTS ONLY SLIGHTLY MORE THAN 50 OF THE 45 MILLION ELIGIBLE VOTERS TURNED OUT AT THE POLLS RUSSIA SAID IT WOULDN'T PAY FORMER SOVIET DEBTS UNTIL CREDITORS AGREED TO A BIG RESCHEDULING DEAL RUSSIA WILL PAY ITS OWN DEBTS INCURRED SINCE DECEMBER 1991 KYRGYZSTAN BEGAN ACCUMULATING ITS FIRST GOLD RESERVES FROM DOMESTIC MINES SINCE IT GAINED INDEPENDENCE FROM THE FORMER SOVIET UNION THE SOUTH ASIAN REPUBLIC HAS RICH BUT SCARCELY TAPPED GOLD DEPOSITS 9303080035 930308 LETTERS TO THE EDITOR TERRORIZED CAMPUS NOW HE'S A TRUSTEE TIM W FERGUSON'S FEB 9 BUSINESS WORLD COLUMN THE IRONIC LIFE OF A CONTROVERSIAL CORNELLIAN OPED PAGE ABOUT THOMAS W JONES THE NEW PRESIDENT AND CHIEF OPERATING OFFICER OF TIAACREF DESERVES ANOTHER VIEWPOINT IN REGARD TO THE 1969 TAKEOVER OF CORNELL'S WILLARD STRAIGHT HALL IN RESEARCHING FOR MY BOOK THE STRAIGHT STORY I LEARNED FROM GOOD SOURCES THAT VIOLENT INCIDENTS BY WHITE STUDENTS TOWARD BLACKS SUCH AS BURNING A CROSS ON THE FRONT LAWN OF A BLACK DORMITORY WERE STAGED BY AFROAMERICAN STUDENTS TO BRING SYMPATHY TO THEIR CAUSE TOM JONES'S REMARK THAT HIS ORATORY AGAINST THE CORNELL COMMUNITY DURING THE CRISIS WAS NOT A DIRECT THREAT IS DISINGENUOUS THE CAMPUS WAS TERRORIZED BY A SPEECH HE MADE TO A GATHERING OF 6000 IN BARTON HALL AS THE SPOKESMAN FOR THE AFRICANAMERICAN SOCIETY IN THE PAST IT HAS BEEN ALL THE BLACK PEOPLE WHO HAVE DONE ALL THE DYING NOW THE TIME HAS COME WHEN THE PIGS ARE GOING TO DIE TOO CORNELL HAS UNTIL 9 O'CLOCK TO LIVE THE EARLYMORNING TAKEOVER OF STRAIGHT HALL WAS MET WITH REAL FEAR BY THE PARENTS STAYING THERE PARENTS WEEKEND WHO WERE ROUSED FROM SLEEP BY A LOUD BANG ON THEIR DOORS AND TOLD TO MARCH OUTSIDE THEY HAD TIME ONLY TO THROW ON SOME CLOTHES AND GRAB A COAT BUT THE TACTICS WORKED THE FACULTY BACKED DOWN AND GAVE IN TO THE STUDENTS' DEMANDS PRESIDENT JAMES PERKINS RESIGNED UNDER PRESSURE AND HE'D BEEN THE ONE WHO PUSHED THE UNIVERSITY TO OPEN ITS DOORS TO DISADVANTAGED BLACKS AND NOW TOM JONES WILL SIT ON CORNELL'S BOARD OF TRUSTEES ONLY IN AMERICA 9303080034 930308 BALKAN DILEMMA WHILE WORLD WATCHES BOSNIA ITS NEIGHBORS MAY START NEXT WAR IN OCCUPIED CROATIA ARMIES SAY THE FIGHT ISN'T OVER AND IGNORE A UN TRUCE A BITTER LESSON FOR DIPLOMATS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL PAKRAC SERBOCCUPIED CROATIA GO TO PAKRAC THE UNITED NATIONS SAID AND YOU WILL SEE HOW CROATS AND SERBS GET ALONG IN A UN PROTECTED AREA ONE DAY A WEEK AT CHECKPOINT WHISKEYCHARLIE 8 RESIDENTS FROM BOTH SIDES OF THIS DIVIDED CITY HAVE A CHANCE TO SHARE SCHNAPPS AND KISSES IN A DEMILITARIZED ZONE SO WE WENT TO PAKRAC INSTEAD OF HUGS THERE IS SEETHING HATRED THAT HAS THE CROATS AND SERBS ITCHING TO GO TO WAR AGAIN WHAT'S YOUR RELIGION DEMANDS DUSKO NIKOLIC A CROAT POLICEMAN SIPPING COFFEE AT THE SCORPION BAR JUST DOWN THE STREET FROM THE UN CONTROL TWO DAYS EARLIER TWO CROAT FARMERS WERE CHUGGING THROUGH TOWN ON A TRACTOR WHEN SERB GUNMEN JUMPED THEM AT A FAKE ROADBLOCK AND SHOT THEM IN THE HEAD THE WEEK'S REUNION AT WHISKEYCHARLIE WAS CANCELED IN THE SCORPION IT IS OPEN SEASON ON SERBS CATHOLIC ROSARY BEADS DANGLE FROM THE BAR ORTHODOX CHRISTIAN SERBS AREN'T WELCOME JESUS SAID LOVE YOUR NEIGHBORS' QUOTES THE POLICEMAN WHO GOES BY THE NOM DE GUERRE NASTY NIK WELL I DO LOVE THEM I LOVE TO KILL THEM A HUGE PHOTOGRAPH OF A LOCAL PARAMILITARY UNIT THAT BATTLED THE NEIGHBORS 15 MONTHS AGO HANGS ABOVE THE BAR NASTY NIK IS THE ONE DECKED OUT ALL IN BLACK AND WAVING TWO AUTOMATIC RIFLES IN THE AIR WE'RE READY TO CLEAN THEM OUT HE SAYS OF THE SERBS WE'RE READY TO GO BACK TO WAR PAKRAC'S APOCALYPSE NOW ATMOSPHERE PROVIDES CHILLING EVIDENCE OF THE LIMITS AND IN SOME CASES DOWNRIGHT IMPOTENCE OF INTERNATIONAL EFFORTS TO END THE FIGHTING IN THE FORMER YUGOSLAVIA IRONICALLY THE WAR IN CROATIA WHERE THE UN DECLARED PEACE A YEAR AGO IS SET TO EXPLODE AGAIN JUST AS THE UN AND THE US LURCH TOWARD DEEPER INTERVENTION TO IMPOSE A SIMILAR PEACE IN NEIGHBORING BOSNIAHERZEGOVINA WHILE US PLANES DROP RELIEF SUPPLIES TO BESIEGED VILLAGES IN EASTERN BOSNIA THE COMBATANTS IN CROATIA ARE BACK TO DROPPING BOMBS IGNORING A UNORDERED CEASEFIRE LOCAL CLASHES ARE FLARING THROUGHOUT SERBOCCUPIED CROATIA BOTH SIDES HAVE BEGUN A MASSIVE MOBILIZATION OF TANKS AND HEAVY ARTILLERY WEAPONS THAT ARE SUPPOSED TO BE IDLED IN UN WAREHOUSES ETHNIC CLEANSING CONTINUES AS DO MURDER AND HARASSMENT AS IF THE PEACEKEEPERS WERE INVISIBLE CROAT AND SERB REFUGEES WHO LONG AGO SHOULD HAVE RETURNED TO THEIR HOMES UNDER UN GUIDANCE ARE CLAMORING FOR JUSTICE THE SITUATION IN CROATIA IS VERY VOLATILE DESPAIRS CANADIAN MAJ GEN ROBERT GAUDREAU THE DEPUTY COMMANDER OF THE UN FORCES HERE THE NEXT BALKANWIDE WAR MIGHT NOT START IN BOSNIA BUT IN CROATIA THE UN'S FAILURE TO DEFUSE HOSTILITIES IN CROATIA CONTAINS MANY BITTER LESSONS FOR AMERICAN AND EUROPEAN DIPLOMATS CONFOUNDED BY THE BALKAN BLOODSHED AND WORRIED THAT SIMILAR ETHNIC CONFLICTS MAY ERUPT ELSEWHERE IN EASTERN EUROPE IT RAISES THE SPECTER THAT SHORT OF INTERVENTION BY A GULF WARLIKE INTERNATIONAL MILITARY COALITION THE FIGHTING MAY BE UNSTOPPABLE AND AS PAKRAC PROVES A PEACE WITHOUT RESOLVING THE HATREDS AND TERRITORIAL DISPUTES THAT FUELED THE WAR IS NO PEACE AT ALL THE FIRST CROATIAN WAR EXPLODED IN JULY 1991 AFTER CROATIA DECLARED ITS INDEPENDENCE FROM YUGOSLAVIA HEAVILY ARMED SERB NATIONALISTS SUPPORTED BY THE YUGOSLAV ARMY PUSHED INTO MANY PARTS OF CROATIA SAYING THEY WERE PROTECTING SERBPOPULATED COMMUNITIES FROM A REVIVAL OF THE CROATIAN FASCISM THAT KILLED MANY SERBS IN WORLD WAR II AFTER SIX MONTHS OF BRUTAL FIGHTING AT LEAST 10000 PEOPLE WERE DEAD HUNDREDS OF THOUSANDS WERE REFUGEES AND COUNTLESS CITIES AND VILLAGES WERE DESTROYED AND THE SERBS HAD CONTROL OF 30 OF CROATIA IN FEBRUARY 1992 BOTH SIDES SIGNED A UNBROKERED TRUCE AND BLUEHELMETED PEACEKEEPERS WERE DEPLOYED THROUGHOUT THE SERBOCCUPIED AREAS BUT WHEN THE FIGHTING IN BOSNIA FLARED A MONTH LATER THE WORLD TOOK ITS EYES OFF CROATIA WITH LITTLE OUTSIDE PRESSURE TO NEGOTIATE A LASTING SOLUTION TO THEIR ETHNIC AND TERRITORIAL DISPUTES BOTH SERBS AND CROATS USED THE PAST YEAR TO LICK THEIR WOUNDS AND REBUILD THEIR ARSENALS FOR A SECOND WAR CHECKPOINT WHISKEYCHARLIE 8 IN PAKRAC IS THE BEST THE INTERNATIONAL COMMUNITY HAS DONE AND IT IS NOT MUCH CANADIAN PEACEKEEPERS OVERSEE A BOMBEDOUT NO MAN'S LAND SMALLER THAN A BASEBALL INFIELD WHERE WHEN TENSIONS AREN'T TOO HIGH RESIDENTS FROM THE SERB AND CROAT SIDES OF TOWN CAN GATHER TOGETHER BUT IN THE SHRAPNELSCARRED BUILDINGS ON EITHER SIDE OF THE CHECKPOINT THE HATREDS AND SUSPICIONS THAT FUELED THE WAR RAGE AS BEFORE IN WORLD WAR II 5600 SERBS FROM THIS AREA WERE KILLED SLAUGHTERED BY THE USTASHE SAYS MILAN RADAKOVIC SPITTING OUT THE NAME OF THE CROATIAN FASCIST REGIME A SERB MR RADAKOVIC WAS THE MAYOR OF PAKRAC BEFORE THE FIGHTING AND NOW RUNS THE SERB SIDE OF TOWN HE WAS INSTRUMENTAL IN DEMILITARIZING WHISKEYCHARLIE 8 BUT THAT IS ABOUT AS FAR AS HE IS WILLING TO COMPROMISE THE SERBS OF PAKRAC HE VOWS WILL NEVER LIVE IN A CROATIAN STATE IN THE SCORPION BAR ON THE OTHER SIDE OF WHISKEYCHARLIE THE CROATS VOW THAT PAKRAC WILL NEVER BECOME PART OF A SERBIAN STATE TWO HUNDRED YARDS FROM HERE I FOUND A CHILD'S HEAD SEVERED FROM THE BODY SAYS JURICA ZURO THE BAR'S OWNER BLAMING THE SERBS FOR THE ATROCITY THOSE PEOPLE SHOT AT OUR CHILDREN THE UN HE SAYS HAS HAD ITS YEAR TO NEGOTIATE A SOLUTION AND FAILED THERE'S A LIMIT TO EVERYTHING INCLUDING TALK HE SAYS RENEWING THE WAR IS THE FAVORED CHOICE AT THE SCORPION FOR SETTLING OLD SCORES AND THE SECOND WAR WARNS MR ZURO WILL BE WORSE THAN THE FIRST SUCH A PROSPECT IS A HUMILIATION FOR THE UN WHICH FANCIES ITSELF AS THE POLICEMAN OF THE NEW WORLD ORDER IN CROATIA THE UN HAS ENDED UP LOOKING MORE LIKE THE KEYSTONE KOPS OR LIKE THE LITTLE BOY TRYING TO REPAIR A LEAKING DAM JUST WHEN IT PUTS A FINGER IN ONE HOLE WATER COMES GUSHING OUT ANOTHER FOR AN ENTIRE YEAR THE UN SECURITY COUNCIL HAS BEEN UNWILLING TO ALLOW THE PEACEKEEPERS TO USE FORCE TO IMPOSE THE TRUCE IN CROATIA COMMANDERS ON THE GROUND HAVE BEEN RELUCTANT TO USE THEIR WEAPONS EVEN IN SELFDEFENSE FEARING THAT THEY THEMSELVES MIGHT BECOME MIRED IN THE WAR THUS WHEN EITHER SERBS OR CROATS REFUSED TO DISARM THERE WAS LITTLE THE PEACEKEEPERS COULD DO INSTEAD OF BEING AN INTIMIDATING PRESENCE THE MULTINATIONAL CONTINGENT HAS BECOME A LAUGHINGSTOCK AMONG ALL SIDES IF THEIR SOLDIERS CAN'T SHOOT SCOFFS IVAN MILAS A MEMBER OF THE CROATIAN GOVERNMENT THE UN WOULD BE BETTER OFF DEPLOYING PRIESTS AND PSYCHOLOGISTS LATE LAST MONTH THE SECURITY COUNCIL FINALLY AUTHORIZED THE PEACEKEEPERS IN CROATIA TO BE ARMED WITH HEAVIER EQUIPMENT IN SELFDEFENSE BUT BY NOW BOTH CROATS AND SERBS HAVE SUCH SCANT RESPECT FOR THE UN THAT THE MOVE WILL HAVE LITTLE DETERRENT EFFECT THE PEACEKEEPERS ARGUE THAT THEY HAVE ALSO BEEN UNDERCUT BY THE DIPLOMATS' FAILURE TO PROD CROATIA AND SERBIA INTO PEACEMAKING OR NEGOTIATING A POLITICAL SETTLEMENT ENDING ETHNIC TENSIONS ON THE GROUND WHILE CROAT AND SERB LEADERS REFUSE TO TALK PEACE AND CONVERSELY STARTING PEACE TALKS WHILE FIGHTING RAGES DEFIES THE LAW OF GRAVITY SAYS ONE UN COMMANDER CROATIAN OFFENSIVE THE PEACE PLAN HAS ALSO BEEN CONFOUNDED BY BALKAN POLITICS WHICH DEFY WESTERN LOGIC LAST MONTH CROATIA LAUNCHED AN OFFENSIVE INTO AN AREA OF SERB OCCUPATION ONLY HOURS BEFORE CROATIAN OFFICIALS WERE TO MEET WITH THE UN AND THE SERBS OUTRAGED A UN MILITARY OFFICIAL BLURTED NOBODY PLAYS WITH A FULL DECK HERE IN PUTTING TOGETHER A BOSNIAN PLAN THE INTERNATIONAL COMMUNITY SEEMS TO BE LEARNING SOME LESSONS FROM CROATIA ABOVE ALL THE SECURITY COUNCIL IS COMMITTED TO USING FORCE TO KEEP ANY PEACE AGREEMENT IN BOSNIA BUT WHILE THE BLUE HELMETS WILL BE ALLOWED TO TAKE ACTION AGAINST ANY VIOLATORS THERE IS DISAGREEMENT OVER HOW MANY PEACEKEEPERS TO DEPLOY WHILE DIPLOMATS TALK ABOUT 40000 SOLDIERS MILITARY OFFICIALS SAY IT WILL TAKE UP TO 80000 THERE WILL HAVE TO BE A MASSIVE DEPLOYMENT AT THE BEGINNING AND THEN PARE DOWN FROM THERE SAYS GEN GAUDREAU BOSNIA IS LIKE A SPONGE IT ABSORBS TROOPS FOREVER AND EVER ON ANOTHER CRUCIAL ISSUE THOUGH THE ARCHITECTS OF THE BOSNIA BLUEPRINT SEEM TO BE REPEATING A FATAL CROATIA MISTAKE HAMMERED TOGETHER BY UN AND EUROPEAN COMMUNITY MEDIATORS THE PLAN SEEKS TO SEPARATE BOSNIA'S WARRING SIDES BUT DOES LITTLE TO RESOLVE THE CAUSE OF THEIR WAR IN FACT IT HAS BROUGHT RARE CONSENSUS AMONG CROATS SERBS AND MUSLIMS ON ONE POINT SUCH A PEACE WILL ONLY SOW THE SEEDS OF MORE CONFLICT BY DIVIDING BOSNIA INTO 10 AUTONOMOUS PROVINCES PARTLY ALONG ETHNIC LINES THE PLAN CONFIRMS A GOOD DEAL OF THE ETHNIC CLEANSING BY BOTH SERBS AND CROATS IT HAS ALREADY PROVOKED INCREASED FIGHTING AS THE SIDES TRY TO GAIN AS MUCH TERRITORY AS POSSIBLE AND FORCE A REDRAWING OF THE PROVINCIAL BORDERS FESTERING DISPUTES IN CROATIA IT IS THE FESTERING TERRITORIAL DISPUTES MORE THAN ANYTHING ELSE THAT HAVE STRANGLED ANY CHANCE FOR PEACE WHILE THE UN DID SUCCEED IN OVERSEEING THE WITHDRAWAL OF THE YUGOSLAV ARMY FROM CROATIA IT HAS YET TO FULLY ACCOMPLISH ANY OF ITS OTHER OBJECTIVES THE SERBOCCUPIED AREAS WEREN'T DEMILITARIZED BECAUSE THE SERBS RESISTED DISARMING THUS FEW PLACES WERE ABLE TO RETURN TO THEIR PREWAR CIVIL AUTHORITY THIS INSTABILITY IN TURN LED TO THE FAILURE TO RETURN REFUGEES TO THEIR HOMES SINCE LAST SUMMER CROATIAN OFFICIALS HAVE BEEN THREATENING TO TAKE MATTERS INTO THEIR OWN HANDS AND INVADE THE SERBHELD LANDS IN EFFECT OVERRUNNING THE UN TROOPS DEPLOYED THERE ON JAN 22 CROATIA ACTED LAUNCHING AN OFFENSIVE AGAINST SERB FORCES TO TAKE CONTROL OF THE MASLENICA BRIDGE A KEY CONNECTION BETWEEN NORTHERN CROATIA AND ITS TOURISMRICH SOUTH ALONG THE ADRIATIC SEA THE SERBS RESPONDED WITH AN ALLOUT MOBILIZATION ACROSS CROATIA MOVING IN REINFORCEMENTS FROM ELSEWHERE IN THE FORMER YUGOSLAVIA AND RAIDING UN WAREHOUSES TO RECLAIM WHATEVER TANKS AND ARTILLERY THEY HAD PUT UNDER UN SUPERVISION THAT TOOK US BACK TO SQUARE ONE IF NOT ONE SQUARE BEHIND SAYS GEN GAUDREAU WHEN WE FIRST CAME AT LEAST THERE WAS SOME GOODWILL ON BOTH SIDES THE MASLENICA BRIDGE OFFENSIVE ILLUSTRATES THE LYING DOUBLECROSSING AND IMPOTENCE THAT HAVE TORPEDOED THE UN PRESENCE IN CROATIA THE CROATIAN ATTACK CAME ONLY HOURS BEFORE REPRESENTATIVES FROM ZAGREB WERE TO MEET WITH UN AND SERBIAN OFFICIALS TO DISCUSS OPENING TRAFFIC ON THE BRIDGE FOR 10 DAYS THE UN HAD BEEN TRYING TO ARRANGE THE MEETING SEVERAL TIMES THE SERBS POSTPONED AT THE LAST MINUTE ALL THE WHILE CROATIA WAS PLANNING ITS OFFENSIVE AFTER THE ATTACK WHEN THE SERBS IN RETURN MOBILIZED TO RAID THE UN STORAGE AREAS HOUSING THEIR TANKS AND ARTILLERY THEY ENCOUNTERED LITTLE RESISTANCE THE STORAGE SHEDS WERE SUPPOSED TO HAVE A DUALLOCK SYSTEM BUT SOME SHEDS DIDN'T EVEN HAVE DOORS AT THE MOST ONLY A COUPLE OF UN SENTRIES STOOD GUARD AND THEY WEREN'T AUTHORIZED TO USE THEIR WEAPONS TO REPEL THE SERBS IF 40 OR 50 SERBS SHOW UP AND SAY WE'RE TAKING BACK OUR TOYS WHAT CAN YOU DO BUT GET ON THE PHONE AND SAY 'THE SERBS ARE HERE TO TAKE BACK THEIR TOYS' SHRUGS GEN GAUDREAU GOJKO SUSAK THE CROATIAN DEFENSE MINISTER WHO THREE YEARS AGO WAS RUNNING A CHAIN OF PIZZA PARLORS IN OTTAWA CANADA SAYS THE UN COMPLAINTS ABOUT CROATIAN DECEPTION ARE THEIR EXCUSE FOR NOT DOING WHAT THEY ARE SUPPOSED TO DO IN HIS ZAGREB OFFICE WHERE A BEAR SKIN RUG THAT ONCE BELONGED TO FORMER YUGOSLAVIAN STRONGMAN JOSIP BROZ TITO COVERS THE FLOOR MR SUSAK AGAIN PLEDGES THAT THE CROATS HAVE STOPPED THEIR OFFENSIVE STILL THE CLOUDS OF WAR GATHER IN EASTERN CROATIA WHERE THE UN HAS BEEN LEAST SUCCESSFUL IN DISARMING THE SERBS TENSIONS ARE AS THICK AS THE MORNING FOG THE CITY OF OSIJEK SURROUNDED ON THREE SIDES BY SERB OCCUPATION HAS STOPPED REPAIRING THE DAMAGE FROM THE FIRST WAR FIGURING THE WORK WILL HAVE TO START ALL OVER AGAIN AFTER A SECOND WAR EVEN BEFORE THE MASLENICA BRIDGE ATTACK THE SERBS IN EASTERN CROATIA HAD BEEN MOBILIZING PRESSING ALL MEN INTO MILITARY DUTY INCLUDING THE FEW CROATIANS WHO REMAINED BEHIND ANOTHER WAVE OF ETHNIC CLEANSING COMMENCED UNDER THE NOSE OF THE UN A STOCKY CROATIAN MAN 41 YEARS OLD HAS JUST BROUGHT HIS FAMILY TO OSIJEK FLEEING ACROSS THE DRAVA RIVER IN HIS 15YEAROLD ORANGE YUGO WITH A BULLET HOLE IN THE TRUNK FOR 18 MONTHS THEY LIVED UNDER SERB OCCUPATION AND FINALLY DECIDED TO LEAVE WHEN THE MAN AND HIS 18YEAROLD SON WERE TOLD TO JOIN THE SERBIAN ARMY HE ASKS THAT HIS NAME AND THE NAME OF HIS VILLAGE BE KEPT ANONYMOUS FEARING FOR THE SAFETY OF HIS PARENTS AND INLAWS WHO REMAINED BEHIND WE HAD GREAT HOPES WHEN THE UN FIRST ARRIVED HE SAYS WE SAW THE SERBS WERE WORRIED THEY DIDN'T KNOW WHAT THE UN WOULD DO BUT NOTHING HAPPENED THE SERBS SAW THEY COULD DO WHAT THEY WANTED SO THE CROATIANS BEGAN TO LEAVE EVERY WEEK ANOTHER FRIEND LEFT ABOUT 120 FAMILIES HAVE GONE ONLY ABOUT 30 REMAIN ALL OLD PEOPLE AFTER HE WAS ORDERED TO JOIN THE ARMY HE SAYS I COULDN'T TAKE IT PSYCHOLOGICALLY ANYMORE HE COMPLAINED TO THE UN THE ONLY HELP THE UN OFFERED WAS SAFE PASSAGE TO OSIJEK AFTER HE SIGNED OVER HIS HOUSE AND OTHER BELONGINGS TO THE SERBS A UN SPOKESMAN IN ZAGREB CRINGES AT THE STORY IT'S DEPLORABLE BUT VERY OFTEN THERE'S LITTLE WE CAN DO HE SAYS SOMETIMES HE ADDS THE UN PROTESTS TO THE SERBS THAT CROATS REFUSING TO BE CONSCRIPTED SHOULD BE JAILED RATHER THAN SENT TO THE FRONT LINE IN OSIJEK THE REFUGEE AND HIS SON IMPATIENTLY BIDE THEIR TIME DREAMING OF RETURNING HOME AT THE HEAD OF A CROATIAN OFFENSIVE THAT'S WHY I CAME HERE HE SAYS TO FIGHT TO GET MY VILLAGE BACK 9303080033 930308 WORLD MARKETS TOKYO SHARES SOARED 4 MONDAY MORNING LONDON ROSE TO HIGH FRIDAY ON GERMAN RATE CUT A WALL STREET JOURNAL NEWS ROUNDUP JAPANESE STOCKS SURGED 4 MONDAY MORNING WHEN INITIAL BUYING BY PUBLICSECTOR FUND MANAGERS SET OFF A RALLY IN SOME OF THE MARKET'S MOST INFLUENTIAL SHARES OTHER INVESTORS INCLUDING A LARGE NUMBER OF FOREIGN STOCKARBITRAGE TRADERS JUMPED IN THE SURGE FOLLOWED AN ADVANCE IN LONDON STOCKS FRIDAY WHEN SHARES CLOSED AT A RECORD HIGH SPURRED BY AN UNEXPECTED GERMAN EASING OF MONETARY POLICY AND A SUBSEQUENT RALLY IN THE BRITISH BOND MARKET FRANKFURT SHARES FELL FOLLOWING A MILD BUT BRIEF RALLY ON THE REDUCTION OF A MARKET INTEREST RATE WHICH SIGNALED BOLDER GERMAN CUTS AND BUOYED MANY OTHER EUROPEAN BOURSES IN TOKYO AT THE END OF THE MORNING SESSION MONDAY THE NIKKEI STOCK AVERAGE STOOD AT 1754440 UP 72670 POINTS VOLUME WAS ESTIMATED AT 255 MILLION SHARES WHICH IS MORE THAN MOST FULLDAY SESSIONS IN 1993 TRADERS WERE SURPRISED BY THE STRENGTH OF THE RALLY RIGHT NOW EVERYBODY'S STARING AT EACH OTHER TRYING TO FIGURE OUT WHY THIS IS HAPPENING SAID SHIGERU AKIBA HEAD OF YEN EQUITY TRADING AT UBS PHILLIPS AND DREW INTERNATIONAL IT'S NOT BASED ON ECONOMIC FUNDAMENTALS INFLUENTIAL FACTORS INCLUDED THE STABILIZATION OF THE YEN AGAINST THE DOLLAR WHICH SHOULD PROVIDE SOME RELIEF TO JAPAN'S EXPORTERS TRADERS ALSO CITED THE EARLY PASSAGE OF JAPAN'S NATIONAL BUDGET OVER THE WEEKEND WHICH RAISED HOPES THAT THE GOVERNMENT WOULD SPEED PASSAGE OF AN ADDITIONAL FISCAL STIMULUS PACKAGE THE ARREST OF ONETIME JAPANESE POLITICAL KINGMAKER SHIN KANEMARU OVER THE WEEKEND ALSO RAISED HOPES IN SOME CIRCLES THAT JAPAN WOULD SEE POLITICAL REFORM THAT WOULD HELP JAPANESE CORPORATIONS THE MARKET'S BEST PERFORMERS INCLUDED NIPPON TELEGRAPH & TELEPHONE CORP ON RUMORS THAT COMPANY WILL GET A RATE INCREASE AS WELL AS A DISPROPORTIONATE SHARE OF NEW PUBLIC SPENDING NTT'S SHARES HAVE A DISPROPORTIONATE INFLUENCE ON THE NIKKEI BROADER MARKET INDEXES WEREN'T AS BULLISH ON FRIDAY THE NIKKEI WHICH DROPPED 9431 POINTS THURSDAY ROSE 5809 TO 1681770 ON VOLUME OF 270 MILLION SHARES ON THE NEWS THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WOULD ISSUE 14DAY SECURITIES REPURCHASE AGREEMENTS THIS WEEK AT A FIXED 825 CUTTING THE RATE FROM 849 LAST WEDNESDAY BRITISH BOND PRICES WERE PUSHED UP ABOUT 3/4 POINT WHICH FUELED HOPES THAT CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT WILL HAVE MORE LEEWAY TO CUT BRITISH BASE LENDING RATES WHEN HE UNVEILS HIS ANNUAL BUDGET ON MARCH 16 THE GERMAN MONEYMARKET REDUCTION ITSELF WASN'T UNEXPECTED THOUGH IT WAS BIGGER THAN ANTICIPATED THE SUBSEQUENT BOND RALLY MADE BRITISH STOCKS LOOK RELATIVELY LESS EXPENSIVE WHICH LED INVESTORS TO PREDICT FURTHER GAINS AHEAD FOR SHARE PRICES AS LONG AS THE INTERESTRATE TREND IS DOWNWARD BIG PLAYERS WERE EXPECTED TO REMAIN ENSCONCED IN THE MARKET SIGNALING MORE PRICE GAINS LONDON SHARES ALSO GOT SOME TECHNICAL SUPPORT FROM THE GROWING PERCEPTION THAT THE MARKET HAS BROKEN ABOVE A PERCEIVED RESISTANCE LEVEL OF 2900 ON THE 100STOCK INDEX AND BUILT A NEW BASE THERE DESPITE SOME DISAPPOINTING BRITISH CORPORATE NEWS ON FRIDAY SOME OF THE MOST CONSISTENT GAINS WERE SCORED BY RETAILING ISSUES WHICH HAD LAGGED THE MARKET AND WERE CONSIDERED UNDERVALUED IN LIGHT OF IMPROVED RECOVERY HOPES FOR BRITAIN'S ECONOMY ALSO THE RETAILING AND UTILITY SECTORS WERE TARGETS OF LIGHT PROGRAM BUYING IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 458 POINTS TO 168282 THE MODEST INTRADAY RALLY CAME ON THE GERMAN RATE NEWS WHICH PROMPTED BUYING THAT BOOSTED THE DAX TO ITS SESSION HIGH OF 169712 SHORTLY AFTER THE OPENING BUT THE BUYING MOMENTUM SLOWED AS TRADERS REALIZED THE BUNDESBANK'S MOVE MAY PRESAGE A CUT IN OFFICIAL INTEREST RATES ON MARCH 18 WHEN THE CENTRAL BANK'S POLICYMAKING COUNCIL IS SCHEDULED TO MEET NEXT AND MANY INVESTORS DECIDED TO WAIT FOR MORE CLUES IN PARIS AN EARLY BUYING SPREE SPURRED BY ENTHUSIASM OVER THE GERMAN BUNDESBANK'S MOVE PETERED OUT AT MIDSESSION AS PARTICIPANTS BEGAN THEIR USUAL PROFITTAKING AHEAD OF THE WEEKEND BUT THEN ENCOURAGING US EMPLOYMENT FIGURES SENT STOCKS REBOUNDING FROM AN AFTERNOON SLUMP TO CLOSE HIGHER AMSTERDAM INVESTORS WERE CHEERED BY THE GERMAN RATE EASING AND A JUMP IN THE VALUE OF THE DOLLAR AND SHARE PRICES FINISHED HIGHER STOCKHOLM SHARES ROSE ACROSS THE BOARD AS INVESTORS BELIEVED THE GERMAN CENTRAL BANK'S MOVE SIGNALS LOWER GERMAN LENDING RATES WHICH WOULD PAVE THE WAY FOR A SWEDISH RATE REDUCTION BRUSSELS PRICES SURGED ON THE GERMAN ACTION WITH BLUE CHIPS THE BIGGEST GAINERS MADRID STOCKS JUMPED BOOSTED BY CURRENT STABILITY OF THE SPANISH PESETA AND EXPECTATIONS OF A CUT IN SPANISH INTEREST RATES PARTICIPANTS WERE MORE ENCOURAGED BY THE PESETA'S CALM REACTION TO THE GERMAN BUNDESBANK'S DECISION THURSDAY TO LEAVE BENCHMARK RATES UNTOUCHED THAN BY ITS MOVE FRIDAY TO CUT REPO RATES SPANISH SHORTTERM RATES ARE EASING MILAN SHARE PRICES ENDED MIXED TO LOWER IN ACTIVE TRADING AS INVESTORS TOOK PROFITS AND ADJUSTED POSITIONS AHEAD OF TECHNICAL DEADLINES THIS WEEK STOCKS IN ZURICH FELL ON PROFITTAKING LARGELY RELATED TO FUTURES POSITIONS DESPITE A STRONG SWISS BOND MARKET HONG KONG SHARES ROSE TO FINISH AT ANOTHER RECORD AFTER GOV CHRIS PATTEN AGAIN DEFERRED A LEGISLATIVE VOTE ON HIS DEMOCRATIC REFORM PROPOSALS WHICH HAVE PROMPTED A DISPUTE BETWEEN CHINA AND BRITAIN ON THE TERRITORY'S FUTURE GOVERNANCE THE HANG SENG INDEX ADVANCED 3501 POINTS TO 650281 WHICH WAS OUTPACED BY A 2 JUMP FOR THE FINANCE INDEX BUT IN SEOUL PRICES SLID FOR THE EIGHTH CONSECUTIVE SESSION 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 9303080031 930308 SANDVIK OF SWEDEN SAYS PRETAX EARNINGS FELL 20 LAST YEAR SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH MACHINE TOOL AND STEEL TUBE COMPANY SANDVIK AB SAID IN ITS 1992 PRELIMINARY EARNINGS REPORT THAT PRETAX PROFIT AFTER FINANCIAL ITEMS FELL 20 TO 153 BILLION KRONOR 199 MILLION FROM 192 BILLION KRONOR A YEAR EARLIER SALES FELL 19 TO 1722 BILLION KRONOR FROM 1756 BILLION SANDVIK A MAJOR PRODUCER OF CEMENTED CARBIDE METALWORKING TOOL INSERTS SAID DEMAND WEAKENED DURING 1992 MAINLY DUE TO DOWNTURNS IN THE GERMAN AND JAPANESE ECONOMIES AT THE SAME TIME A MODEST RECOVERY BEGAN IN NORTH AMERICA IT ADDED SALES IN SANDVIK'S MOST IMPORTANT MARKET THE EUROPEAN COMMUNITY COUNTRIES DECLINED TO 759 BILLION KRONOR FROM 764 BILLION IN 1991 IT SAID GROWTH WAS REPORTED ONLY IN ITS RELATIVELY MINOR LATIN AMERICAN MARKET AND INDIVIDUAL ASIAN COUNTRIES IT SAID WE ANTICIPATE THAT BOTH SALES AND PROFIT WILL INCREASE DURING 1993 SANDVIK ADDED ALTHOUGH 1993 IS LIKELY TO BE ANOTHER YEAR OF REDUCED DEMAND THE DEPRECIATION OF THE SWEDISH KRONA IS INCREASING THE COMPETITIVENESS OF THE GROUP'S SWEDISH UNITS WHICH SHOULD HAVE A POSITIVE EFFECT ON GROWTH IN VOLUME AS WELL AS PROFITABILITY IT SAID SANDVIK'S BOARD ANNOUNCED IT WOULD PROPOSE A STOCK SPLIT AT THE ANNUAL GENERAL MEETING ON MAY 13 WHEREBY FIVE NEW SHARES WOULD BE ISSUED FOR EACH OLD SHARE HELD 9303080030 930308 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED NINE NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING ON THE BIG BOARD CASTLE & COOKE INC LOS ANGELES A DEVELOPER AND BUILDER OF SINGLEFAMILY HOMES UNDER CKI BEGAN TRADING AS AN INITIAL PUBLIC OFFERING THE FOLLOWING COMPANIES MOVED FROM THE OVERTHECOUNTER MARKET TO THE NEW YORK STOCK EXCHANGE KCS ENERGY INC EDISON NJ AN ENERGY CONCERN WITH INTERESTS IN OIL AND GAS EXPLORATION AND NATURAL GAS TRANSPORTATION UNDER KCS ALLMERICA PROPERTY & CASUALTY COS WORCESTER MASS A PROPERTYLIABILITY INSURANCE BUSINESS UNDER APY PICCADILLY CAFETERIAS INC BATON ROUGE LA A CHAIN OF CAFETERIAS UNDER PIC THE NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS NATHAN'S FAMOUS INC WESTBURY NY AN OPERATOR AND FRANCHISOR OF FAST FOODS UNDER NATH TECHNOMATIX TECHNOLOGIES LTD HERZLIYA ISRAEL A DEVELOPER AND MARKETER OF COMPUTERAIDED PRODUCTION ENGINEERING SOFTWARE UNDER TCNOF WASHINGTON HOMES INC LANDOVER MD A DESIGNER BUILDER AND MARKETER OF HOMES AND CONDOMINIUMS UNDER WHIN RECOVERY ENGINEERING INC MINNEAPOLIS A DESIGNER DEVELOPER AND MAKER OF SMALLSCALE WATER PURIFICATION EQUIPMENT UNDER REIN RESOUND CORP REDWOOD CITY CALIF A DESIGNER AND DEVELOPER OF HEARING DEVICES UNDER RSND HUBCO INC UNION CITY NJ A BANK HOLDING COMPANY FORMERLY ON THE AMERICAN STOCK EXCHANGE BEGAN TRADING ON THE NATIONAL MARKET SYSTEM UNDER HUBC MOVING UP TO THE NATIONAL MARKET SYSTEM FROM THE NASDAQ SMALLCAP MARKET IS BANCINSURANCE CORP COLUMBUS OHIO A SELLER AND UNDERWRITER OF SPECIALIZED PROPERTY AND CASUALTY INSURANCE UNDER BCIS TWO BANK HOLDING COMPANIES MOVED UP FROM THE PINK SHEETS TO THE NATIONAL MARKET SYSTEM PENN CENTRAL BANCORP INC HUNTINGDON PA UNDER PCBC AND CB BANCSHARES INC HONOLULU UNDER CBBI THE AMERICAN STOCK EXCHANGE BEGAN TRADING IN AUDRE RECOGNITION SYSTEMS INC SAN DIEGO CALIF A SOFTWARE DEVELOPER UNDER ARS THE COMPANY HAD BEEN ON THE AMEX'S EMERGING COMPANY MARKETPLACE THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON THE FOLLOWING LIBERTY MEDIA CORP DENVER A PRODUCER AND DISTRIBUTOR OF CABLE PROGRAMMING AND A CABLE SYSTEM OPERATOR THE CBOE WILL BEGIN TRADING OPTIONS ON THE FOLLOWING COMPANIES TODAY CAREMARK INTERNATIONAL INC NORTHBROOK ILL A PROVIDER OF ALTERNATIVE SITES FOR HEALTH CARE SERVICES SOFTWARE TOOLWORKS INC NOVATO CALIF A PUBLISHER OF EDUCATION AND MULTIMEDIA SOFTWARE THE NEW YORK AND PHILADELPHIA STOCK EXCHANGES ALSO WILL BEGIN TRADING OPTIONS TODAY ON CAREMARK INTERNATIONAL THE BIG BOARD BEGAN TRADING OPTIONS ON FINGERHUT COS AND MOORE CORP AND WILL BEGIN OPTIONS TOMORROW ON HORSHAM CORP 9303080029 930308 MARKETING & MEDIA ADVERTISING ABSOLUT CLOUT MAGAZINES PURSUE VODKA ADS AS CHIC MARKET LEADER BY LAURA BIRD THE BACK COVER OF HEARST CORP'S LATEST COUNTRYSIDE MAGAZINE SPORTS AN ABSOLUT VODKA AD A LUSH FOREST SCENE WITH THE SIGNATURE ABSOLUT BOTTLE EMERGING FROM THE CASCADES OF A WATERFALL THE CAPTION ABSOLUT COUNTRYSIDE IF THE IDEA SOUNDS CUSTOMMADE FOR COUNTRYSIDE THAT'S BECAUSE IT WAS IN FACT COUNTRYSIDE CAME UP WITH THE IDEA AND HIRED ITS OWN CREATIVE TEAM TO EXECUTE IT EVEN FOOTING THE 4000 BILL IN EXCHANGE THE FLEDGLING MAGAZINE SCORED A 100000 AD BUY FROM ABSOLUT WHICH WILL BUY ADS IN THREE ISSUES OVER THE COURSE OF A YEAR TAILORING ADS TO INDIVIDUAL MAGAZINES IS NOTHING NEW FOR ABSOLUT WHOSE 13YEAROLD ABSOLUT CAMPAIGN FROM TBWA ADVERTISING NEW YORK IS CONSIDERED BY MANY IN THE INDUSTRY TO BE THE GOLD STANDARD OF MAGAZINE ADVERTISING THE IDEA STARTED WITH ABSOLUT CENTERFOLD WHEN AN AD SHOWING AN UNADORNED ABSOLUT BOTTLE APPEARED IN THE CENTERFOLD OF PLAYBOY MAGAZINE RECENTLY THE IDEA HAS BEEN USED IN SEVERAL CITY MAGAZINES IN WHICH THE ABSOLUT BOTTLE APPEARS AS AN ART DECO HIGHRISE IN MIAMI FOR EXAMPLE OR A SWIMMING POOL IN LOS ANGELES IN THOSE CASES ABSOLUT NOT THE MAGAZINES CREATED THE ADS BUT COUNTRYSIDE WHICH FEATURES ARTICLES ON HOME DECORATING LIFESTYLE FOOD AND FASHION FOR COUNTRY DWELLERS WASN'T AT THE TOP OF ABSOLUT'S LIST OF MEDIA BUYS SO THE MAGAZINE WAS WILLING TO GO THE EXTRA MILE TO GET THE BUSINESS AT ONE POINT COUNTRYSIDE EVEN SPENT 3000 PITCHING THE IDEA OF A TENNIS TOURNAMENT COSPONSORSHIP IN WHICH THE PROFILE OF THE BOTTLE WOULD BE DRAWN AROUND THE TENNIS COURT ABSOLUT PASSED ON THAT IDEA BUT DECIDED TO BUY THE ADS IN COUNTRYSIDE THE EXPENSE OF WOOING ABSOLUT AND HIRING CONCEPT THREE A TINY NARBERTH PA SHOP TO EXECUTE THE ADS WAS WELL WORTH IT SAYS TR ROCKY SHEPARD HEAD OF SALES AND MARKETING FOR COUNTRYSIDE AND PUBLISHER OF ITS SISTER MAGAZINE COUNTRY LIVING I JUST DON'T THINK WE WOULD HAVE GOTTEN THIS BUSINESS IF WE HADN'T OFFERED TO PAY FOR IT MR SHEPARD SAYS THE DEAL WAS PROFITABLE FOR COUNTRYSIDE HE SAYS BUT NOTES THAT IT EXCEEDED THE COSTOFSALE GUIDELINES USUALLY FOLLOWED AT THE MAGAZINE NOT EVERYONE AGREES WITH COUNTRYSIDE'S TACTICS JOHN R MACARTHUR PUBLISHER OF HARPER'S MAGAZINE SAYS THAT BY PAYING FOR THE AD'S CREATION COUNTRYSIDE PANDERED TO THE ADVERTISER AND BREACHED THE WALL BETWEEN EDITORIAL AND ADVERTISING READERS ARE SMART THEY SMELL A PANDERED AD A MILE AWAY HE SAYS IF IT HAPPENS TOO OFTEN HE ADDS READERS LOSE THEIR RESPECT FOR THE MAGAZINE AND ADS LOSE THEIR EFFECTIVENESS HARPER'S MAGAZINE IS PUBLISHED BY HARPER'S MAGAZINE FOUNDATION BUT HARPER'S ITSELF ISN'T ABOVE A LITTLE ACCOMMODATION WHEN THE CLIENT IS ABSOLUT IN THE MAY ISSUE ABSOLUT IS RUNNING ABSOLUT INDEX MARKING THE FIRST TIME HARPER'S HAS GIVEN AN ADVERTISER PERMISSION TO USE ITS FORMAT IN AN AD THE AD IS A BOTTLESHAPED VERSION OF THE WELLKNOWN HARPER'S INDEX THAT OFFERS UP VODKA FACTOIDS LIKE NUMBER OF JELLY BEANS NEEDED TO FILL AN ABSOLUT BOTTLE 222 NUMBER OF EXPRESIDENTS WHO HAVE TRIED THIS 1 THE AD WILL INCLUDE A LINE SAYING THE INDEX FORMAT WAS USED WITH PERMISSION DESPITE YEARS OF ENFORCING ITS TRADEMARK ON THE INDEX AGAINST UNAUTHORIZED USAGE IN ADS ABSOLUT'S USE POSES NO PROBLEM TO MR MACARTHUR ABSOLUT HAS SUCH DISTINCTIVE ADVERTISING WE ALL AGREED THERE WAS NO CHANCE READERS WOULD CONFUSE IT WITH REAL HARPER'S EDITORIAL MARTIN S WALKER CHAIRMAN OF THE PUBLISHING CONSULTANT WALKER COMMUNICATIONS SAYS IT'S NOT ALWAYS GOOD BUSINESS FOR MAGAZINES TO BE THE ONE EXECUTING ADS IF IT DOESN'T WORK THE MAGAZINE IS AT FAULT HE ADDS BUT THE RISK IS WELL WORTH IT ESPECIALLY FOR A RELATIVELY NEW MAGAZINE LIKE COUNTRYSIDE HE NOTES ABSOLUT IS THE BELL COW FOR OTHER LIQUOR ADVERTISERS THE OTHERS PLAY FOLLOWTHELEADER ABSOLUT AND ITS AGENCY TBWA MAINTAIN THAT FAR FROM COMPROMISING A MAGAZINE THEIR CUSTOMIZED ADS AND THEIR 22 MILLION IN MAGAZINE SPENDING A YEAR MAKE MAGAZINES STRONGER ABSOLUT WHICH IS DISTRIBUTED BY GRAND METROPOLITAN'S CARILLON IMPORTERS OF FORT LEE NJ GETS MORE AD PITCHES FROM MAGAZINES THAN IT CAN ACCEPT SO IT TRIES TO SUPPORT AS MANY AS POSSIBLE THROUGH COOPERATIVE VENTURES SUCH AS THE ONE WITH COUNTRYSIDE A LOT OF CLIENTS WILL SIT BACK AND WAIT TO SEE IF A MAGAZINE WILL LIVE BEFORE RISKING AD DOLLARS ON IT SAYS RICHARD LEWIS TBWA'S SENIOR VICE PRESIDENT IN CHARGE OF THE ABSOLUT ACCOUNT BUT ABSOLUT'S WILLINGNESS TO GAMBLE ON NEW MEDIA AS IT DID WITH THE SMALL URBAN DESIGN MAGAZINE METROPOLIS PUTS MAGAZINES IN THE MOOD TO COOPERATE LAST MAY METROPOLIS SPENT 50000 CREATING INTERACTIVE ADS FOR ABSOLUT THAT LET READERS DESIGN THEIR OWN ROOM LAYOUTS WITH FURNITURE CUTOUTS WHETHER WE DO THE CREATIVE OR THEY DO THE POINT IS TO GET INTO THE READERS' HEADS WHILE THEY'RE READING THE MAGAZINE MR LEWIS SAYS FIELD AND STREAM EVEN CAME TO US WITH AN EXECUTION SAYS MICHEL ROUX CARILLON'S CHIEF EXECUTIVE AND PRESIDENT IT WAS TWO FISHERMEN WITH THEIR LINES DEEP IN A BOTTLE OF ABSOLUT AND WHILE ABSOLUT DECLINED THE OFFER WHEN IT WAS MADE MR ROUX SAID HE STILL ISN'T RULING IT OUT I LIKE THAT MAGAZINE HE SAYS I THOUGHT IT WAS A KIND OF EARTHY MAGAZINE HE SAYS AN AD ALONG THE LINES OF ABSOLUT FISHERMAN MIGHT APPEAR SOMEDAY VERY SOON ADVERTISING IS TOO SEXY ACCORDING TO 81 OF RESPONDENTS TO A NATIONAL TELEPHONE SURVEY ON ADVERTISING CONDUCTED BY REDBOOK MAGAZINE NEARLY HALF OF THE RESPONDENTS 49 SAID THEY HAVE BEEN EMBARRASSED IN FRONT OF THEIR FAMILY OR A MALE COMPANION BY THE APPEARANCE OF SEXY OR INTIMATE COMMERCIALS ON TV THE SURVEY OF 500 REDBOOK READERS FOUND BUT 57 SAID THEY WOULD SUPPORT CONDOM ADVERTISING ON TELEVISION FORTYSEVEN PERCENT SAID THEY DON'T BUY A PRODUCT IF THEY FIND THE ADVERTISING OFFENSIVE ACCORDING TO THE SURVEY WHILE 53 REMEMBER PURCHASING A PRODUCT IN THE PAST SIX MONTHS SPECIFICALLY BECAUSE OF AN AD FOR IT WHEN REDBOOK A HEARST CORP PUBLICATION ASKED IF READERS THOUGHT MAGAZINES HAVE TOO MUCH ADVERTISING 74 SAID YES WHO'S NEWS PAT BURNHAM CREATIVE DIRECTOR AT FALLON MCELLIGOTT IS LEAVING AFTER 11 YEARS AT THE MINNEAPOLIS AGENCY A SEARCH FOR A NEW CREATIVE HEAD WOULD BEGIN IMMEDIATELY THE AGENCY SAID PHIL HANFT ASSOCIATE CREATIVE DIRECTOR WILL ASSUME MR BURNHAM'S DUTIES IN THE INTERIM MR BURNHAM COULDN'T BE REACHED FOR COMMENT BUT AN AGENCY STATEMENT SAID HE WAS CONSIDERING BECOMING A DIRECTOR OF TELEVISION COMMERCIALS CAMPAIGN THE OUTDOOR ADVERTISING ASSOCIATION OF AMERICA IS LAUNCHING A 10 MILLION MARKETING CAMPAIGN TO RAISE AWARENESS OF OUTOFHOME ADVERTISING ADS ON POSTERS BUS SHELTERS IN TRADE PUBLICATIONS AND THROUGH THE MAIL SAY OUTDOOR IT'S NOT A MEDIUM IT'S A LARGE CARMICHAEL LYNCH MINNEAPOLIS IS THE AGENCY ACCOUNTS US SHOE HIRED GREY ADVERTISING NEW YORK TO HANDLE ADVERTISING FOR SELBY SHOES PREVIOUSLY HANDLED INHOUSE BILLINGS COULDN'T BE DETERMINED NEW AMSTERDAM BEER AWARDED ADVERTISING FOR ITS MICROBREW TO GRYBAUSKAS BEATRICE NEW YORK THE ACCOUNT WAS PREVIOUSLY HANDLED BY FRANKFURT GIPS BALKIND NEW YORK ROLODEX CORP TAPPED NEW YORK AGENCY WEISS WHITTEN CARROLL STAGLIANO FOR ITS AD ACCOUNT PREVIOUSLY HANDLED BY SLATER HANFT MARTIN BILLINGS ARE ESTIMATED AT 2 MILLION 9303080028 930308 ABREAST OF THE MARKET WHERE TO FIND THE GROWTH STOCKS OF THE '90S BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ARE GROWTH STOCKS DEAD YOU WOULD CERTAINLY THINK SO JUDGING FROM THE PUMMELING OF SOME LONGTIME FAVORITES SUCH AS PHILIP MORRIS DOWN 16 JUST FROM THE START OF THE YEAR AND MERCK DOWN 14 THESE DRUG AND TOBACCO CONCERNS WERE AMONG THE MOST PRIZED GROWTH COMPANIES OF THE 1980S BUSINESSES THAT PRODUCED STRONG INCREASES IN EARNINGS AND DIVIDENDS OVER THE LONG TERM NOW WITH THE CLINTON ADMINISTRATION PLANNING MAJOR ECONOMIC CHANGES THAT THREATEN TO JOLT THESE INDUSTRIES MANY OF THE MOST POPULAR GROWTH STOCKS ARE FACING HARDER TIMES BUT THAT DOESN'T MEAN GROWTHSTOCK INVESTING WILL BECOME A THING OF THE PAST INDEED WITH MANY ECONOMISTS PREDICTING YEARS OF TEPID GROWTH STOCKS OF COMPANIES THAT PRODUCE SOLID EARNINGS INCREASES YEAR AFTER YEAR COULD BE EVEN MORE VALUABLE BUT ANALYSTS SAY A NEW GROUP OF GROWTH STOCKS IS MOVING INTO THE LIMELIGHT THE GROWTH STOCK LEADERS OF THE LAST 10 YEARS WILL NOT BE THE GROWTH STOCK LEADERS OF THE 1990S SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP THE OLD FAVORITES WILL CONTINUE TO BE SOLID GROWTH STOCKS BUT TO SAY THINGS REALLY HAVEN'T CHANGED WOULD BE MYOPIC MR JOHNSON SUGGESTS THE NEW GROWTH COMPANIES WILL BE THOSE THAT TACKLE THE LARGESCALE CHALLENGES FACING THE US THE LIKELY LEADERS INCLUDE TECHNOLOGY COMPANIES HEALTH CARE PROVIDERS ENVIRONMENTAL CONCERNS AND EVEN EDUCATIONRELATED BUSINESSES IT'S SAFE TO BET THAT THE NEW GROWTH STOCK LEADERS WILL BE AMONG THE PROBLEM SOLVERS OF THE NEXT 10 YEARS HE SAYS AMONG TECHNOLOGY COMPANIES MR JOHNSON LIKES SEMICONDUCTOR MAKER INTEL AND SOFTWARE PRODUCER NOVELL BECAUSE THESE TYPES OF COMPANIES WILL HELP IMPROVE THE ECONOMY'S PRODUCTIVITY HE SEES TECHNOLOGY COMPANIES PARTICULARLY SEMICONDUCTORS SHOWING RELATIVELY UNINTERRUPTED GROWTH IN EARNINGS AND DIVIDENDS IN THE 1990S TECHNOLOGY STOCKS HAVE BEEN CYCLICAL THEY'VE HAD THEIR UPS AND DOWNS AND HAVE NOT QUALIFIED AS TRADITIONAL GROWTH STOCKS MR JOHNSON SAYS IT APPEARS THAT IS CHANGING OTHER COMPANIES MR JOHNSON SEES AS POSSIBLE 1990S GROWTH STOCKS ARE US HEALTHCARE WASTE MANAGEMENT AND EVEN A SMALL OVERTHECOUNTER COMPANY DEVRY WHICH PROVIDES BUSINESS AND TECHNICAL EDUCATION JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH COUNSELS INVESTORS TO CONSIDER MICROSOFT AS A POTENTIAL GROWTH STOCK OF THE 1990S HE BELIEVES THE MAMMOTH SOFTWARE COMPANY IS WELLPOSITIONED TO PROVIDE A STEADY STREAM OF GOOD EARNINGS WHATEVER TYPE OF NEW HARDWARE EMERGES WE DON'T KNOW WHAT THE NEW MACHINES WILL BE BUT WE KNOW SOFTWARE WILL HAVE TO BE WRITTEN FOR THEM AND MICROSOFT IS IN THE TOP POSITION TO DO THAT MR SOLLOWAY SAYS ANOTHER FAMILIAR NAME GRACING THE LIST OF LIKELY 1990S GROWTH STOCKS IS AMERICAN TELEPHONE & TELEGRAPH JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ EXPECTS A PICKUP IN THE WORLD ECONOMY IN THE 1990S TO HELP DEFINE SOME OF THE NEW GROWTH STOCKS AND AT&T WOULD BE A BIG BENEFICIARY OF GROWING DEMAND ABROAD FOR SOPHISTICATED COMMUNICATIONS TECHNOLOGY AT&T IS A GOOD CANDIDATE TO BECOME A FUTURE GROWTH STOCK HE SAYS AS THE NEW GROWTH STOCKS MUSCLE ONTO THE SCENE WHAT DOES THE FUTURE HOLD FOR THE OLD ELITE FIRST ALBANY'S MR JOHNSON EXPECTS DRUG COMPANIES TO REPORT STRONG BUT SLOWER EARNINGS GROWTH THAN THEY ENJOYED IN THE 1980S IF YOU BELIEVE THE CLINTON PROGRAM WILL BE EFFECTIVE IT WILL BE SOMEWHAT NEGATIVE FOR THE DRUG COMPANIES BECAUSE COST CONTAINMENT IS THE PRINCIPAL FEATURE OF HIS HEALTH CARE PROGRAM HE SAYS BUT COUNTERING THOSE PRESSURES HE ADDS ARE DEMOGRAPHIC CHANGES THE NUMBER OF PEOPLE AGED 45 TO 65 WILL INCREASE BY 30 OVER THE NEXT 10 YEARS MR JOHNSON SAYS IT'S TRUE THAT PRICE INCREASES FOR DRUG COMPANIES WILL BE A LOT LESS BUT UNIT SALES ARE LIKELY TO MARCH ALONG MR SOLLOWAY OF ARGUS RESEARCH SAYS INVESTORS WILL HAVE TO BE MORE SELECTIVE IN THEIR DRUG STOCK HOLDINGS THAN THEY WERE IN THE 1980S HE ADVISES INVESTORS TO SEEK OUT THOSE COMPANIES THAT HAVE VERY GOOD RESEARCH AND DEVELOPMENT EFFORTS ARE VERY INNOVATIVE AND HAVE A GOOD PIPELINE OF NEW PRODUCTS ONE SUCH STOCK THAT HE RECOMMENDS IS GLAXO MR SOLLOWAY SEES SOME OTHER OLD FAVORITES SLIPPING FROM INVESTORS' LISTS OF TOP GROWTH STOCKS FOR 1990 AMONG THEM DISNEY HE NOTES THAT DISNEY STOCK WAS SO DEPRESSED IN THE EARLY 1980S IT BECAME ATTRACTIVE FOR THE VALUE OF ITS REAL ESTATE ALONE SINCE THEN THE COMPANY HAS MADE PROFITABLE USE OF ITS EXTENSIVE FILM LIBRARY BY RELEASING DISNEY CLASSICS ON VIDEO AND HAS FURTHER MARKETED ITS TRADEMARK CHARACTERS NOW MR SOLLOWAY THINKS IT MAY HAVE FULLY EXPLOITED THOSE GEMS DISNEY NO LONGER HAS THE UNTAPPED POTENTIAL IT USED TO HAVE MR SOLLOWAY SAYS IT MAY HAVE SEEN ITS PRIME HE ALSO SUGGESTS THAT MANY OF THE BIG FOOD COMPANIES THAT SAW STEADY STRONG GROWTH IN THE 1980S ARE LESS ATTRACTIVE NOW NOT ONLY ARE THEY FACING INCREASING PRICE COMPETITION BUT THEY ALSO APPEAR TO HAVE CARRIED PRODUCT PROLIFERATION TO AN EXTREME HE SAYS THE EXCEPTION IS SARA LEE WHICH MR SOLLOWAY LIKES FOR ITS INTERNATIONAL EXPOSURE IT'S NOT AS EASY TO PICK WINNERS IN THE FOODS AS IT WAS IN THE 1980S BECAUSE THE PICKINGS ARE SLIMMER HE SAYS AND HOW ABOUT THIS OLD FAVORITE MANY INVESTORS MAY WISH THEY HAD NEVER HEARD OF INTERNATIONAL BUSINESS MACHINES BUT DILLON READ'S MR MCALINDEN SEES A POSSIBLE RETURN TO GLORY FOR WHAT WAS ONCE THE COUNTRY'S PREMIER GROWTH STOCK ONCE IT GETS ITS ACT TOGETHER IBM WILL REEMERGE AS A POPULAR GROWTH HOLDING HE SAYS MR MCALINDEN ATTRIBUTES A GOOD PART OF IBM'S TROUBLES TO THE SLACK ECONOMY AND BELIEVES IT WILL BENEFIT FROM AN EVENTUAL PICKUP IN CAPITAL SPENDING AND FROM ITS OWN RESTRUCTURING EFFORTS ITS PROBLEMS HAVE BEEN ANALYZED AD NAUSEAM BUT THE FACT IS IT'S STILL IBM HE SAYS IT'S GOT AN INCREDIBLE DISTRIBUTION NETWORK AND IT'S GOT THE LEADERSHIP POSITION STOCK PRICES GAVE UP MOST OF THEIR GAINS FROM A MIDAFTERNOON RALLY AND ENDED MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 567 POINTS TO 340458 IT HAD SURGED MORE THAN 30 POINTS DURING THE SESSION STANDARD & POOR'S 500STOCK INDEX LOST 123 TO 44611 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 054 TO 24599 DECLINING ISSUES OUTPACED ADVANCERS 961 TO 922 TRADING ON THE BIG BOARD TOTALED 2471 MILLION SHARES UP FROM 2308 MILLION ON THURSDAY FOR THE WEEK THE INDUSTRIAL AVERAGE GAINED 1 THE S&P 500 ROSE 06 AND THE BIG BOARD'S COMPOSITE INDEX ADDED 08 THE DOW JONES TRANSPORTATION AVERAGE SURGED 1834 TO 153845 LARGELY ON A JUMP IN XTRA THE TRUCKING COMPANY CLIMBED 6 OR 67 TO 95 AFTER ANNOUNCING PLANS TO OFFER 650000 COMMON SHARES AND USE THE PROCEEDS TO RETIRE DEBT RAILROAD STOCKS ALSO ROSE CSX GAINED 1 1/2 TO 73 3/8 AND BURLINGTON NORTHERN ADDED 1 1/2 TO 49 7/8 ALUMINUM STOCKS WERE AMONG THE DAY'S TOP PERFORMERS ALUMINUM CO OF AMERICA JUMPED 1 3/8 TO 69 7/8 REYNOLDS METALS GAINED 1 TO 51 1/4 AND AMAX ROSE 3/8 TO 18 7/8 AMAX COAL INDUSTRIES AN AMAX SUBSIDIARY SETTLED A DISPUTE WITH PSI ENERGY A UNIT OF PSI RESOURCES ABOUT THE QUALITY OF COAL DELIVERED TO PSI'S GALLAGHER STATION PSI RESOURCES FELL 1/2 TO 21 7/8 DUKE POWER DROPPED 5/8 TO 38 7/8 CENTRAL & SOUTH WEST CORP FELL 1/2 TO 32 3/8 AND CONSOLIDATED EDISON LOST 1/2 TO 35 1/8 SAVINGS AND LOANS ALSO SLIPPED HF AHMANSON FELL 1/2 TO 20 1/2 AND GOLDEN WEST SANK 3/8 TO 47 7/8 GENERAL MOTORS ADDED 7/8 TO 39 ON A POSITIVE EARNINGS OUTLOOK WALMART WAS THE MOST ACTIVE STOCK FOR THE SECOND STRAIGHT DAY SLIPPING 1/8 TO 32 3/4 ON VOLUME OF 4069000 SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 3485382 SHARES AMERICAN STOCK EXCHANGE VOLUME TOTALED 14371000 SHARES COMPARED WITH 15055000 THURSDAY THERE WERE 289 ISSUES ADVANCING 243 DECLINING AND 223 UNCHANGED 9303080027 930308 THE OUTLOOK THE IRONY CLINTON PLAN MAY CURB JOB GROWTH BY HENRY F MYERS NEW YORK AS A PRESIDENTIAL CANDIDATE BILL CLINTON TALKED A LOT ABOUT TWO GOALS REDUCING DEFICITS AND CREATING JOBS NOW AS PRESIDENT HE HAS PROPOSED AN ECONOMIC PROGRAM THAT MAY ACHIEVE SOME PROGRESS ON THE DEFICITS BUT MAY DAMAGE THE ALREADY WEAK JOB MARKET EVER SINCE THE RECESSION ENDED GROWTH IN EMPLOYMENT HAS BEEN PAINFULLY SLOW AMERICAN COMPANIES HAVE BEEN PRESSURED BY INTERNATIONAL COMPETITION TO CAST OFF UNNEEDED CAPACITY MODERNIZE EQUIPMENT AND EXPORT JOBS TO CHEAPLABOR REGIONS IN ADDITION THE INCREASINGLY HIGHTECH ECONOMY IS PLAGUED BY A GROWING MISMATCH OF JOB REQUIREMENTS AND LABOR SKILLS AVAILABLE AND DESPITE A SURPRISING SURGE IN PAYROLL EMPLOYMENT AND A 01POINT DROP IN UNEMPLOYMENT ANNOUNCED FRIDAY STRENGTHENING THE JOB MARKET WILL BE DIFFICULT EVEN THE 48 ANNUAL RATE OF GROWTH IN THE 1992 FOURTH QUARTER THE BIGGEST GAIN IN FIVE YEARS ONLY MODESTLY BOLSTERED EMPLOYMENT MOREOVER FEW ECONOMISTS EXPECT ECONOMIC GROWTH TO MAINTAIN THAT PACE THAT IS ESPECIALLY BAD NEWS IF EDWARD HYMAN OF INTERNATIONAL STRATEGY & INVESTMENT IS RIGHT ASSUMING 12 DEMOGRAPHIC GROWTH IN THE LABOR FORCE AND AT LEAST A 23 INCREASE IN PRODUCTIVITY HE FIGURES THAT 35 REAL GROWTH WOULD BE NEEDED JUST TO KEEP THE UNEMPLOYMENT RATE FROM RISING IN THIS TROUBLED ENVIRONMENT PRESIDENT CLINTON IS PUSHING A WIDERANGING PROGRAM BUT FORCING A LOT OF CHANGE IN A HURRY CAN BE RISKY THAT IS ONE REASON THE NEW DEAL DID SO LITTLE TO END THE DEPRESSION AND HOWEVER JUSTIFIABLE MR CLINTON'S ECONOMIC PLANS MAY BE IN VIEW OF THE HUGE BUDGET DEFICITS MANY OF HIS PROPOSALS WOULD IMPEDE GROWTH IN EMPLOYMENT DAVID RESLER OF NOMURA SECURITIES INTERNATIONAL INC PUTS THE COST AT 400000 JOBS BY THE END OF 1994 THE HEART OF THE CLINTON PROGRAM IS A SIZABLE TAX INCREASE WHETHER ACKNOWLEDGED AS SUCH OR SMOKEANDMIRRORED INTO A SPENDING CUT MR HYMAN BELIEVES THAT THE PROPOSED INCREASE IN FEDERAL TAX REVENUES WOULD REDUCE INFLATIONADJUSTED GROWTH IN GROSS DOMESTIC PRODUCT BY ONE PERCENTAGE POINT IN 1994 1995 AND 1996 AS A RESULT HE SAYS WE ARE LOWERING OUR 1994 REAL GDP GROWTH ESTIMATE FROM 40 TO 30 IF THE VARIOUS TAX PROPOSALS ARE CONSIDERED INDIVIDUALLY IT SEEMS INESCAPABLE THAT THE RISE IN TAXES ON COMPANIES WHICH DO MOST OF THE HIRING AND ON THE AFFLUENT WHO DO MUCH OF THE INVESTING WOULD SLOW JOB CREATION IN ADDITION THE PRESIDENT WANTS HIGHER ENERGY TAXES WHICH WOULD HIT EVERYONE AND INDUSTRY IN PARTICULAR THAT PRESSURE ON EMPLOYERS WOULD BE AGGRAVATED BY A SERIES OF CLINTON PROPOSALS THAT WOULD UNINTENTIONALLY DISCOURAGE HIRING THE ADMINISTRATION WANTS TO STICK COMPANIES WITH HIGHER JOBTRAINING COSTS A HIGHER MINIMUM WAGE AND PROBABLY HIGHER HEALTHCARE BILLS THE ALREADY SIGNED FAMILYLEAVE BILL MAY BE LAUDABLE BUT WILL RAISE COMPANIES' COSTS TOO IN ADDITION MANY OFFICIALS ON HIS TEAM CLEARLY WANT TO RESTORE SOME OF THE REGULATION EASED DURING THE REAGAN YEARSPARTICULARLY THE ENVIRONMENTAL REGULATION VERY DEAR TO VICE PRESIDENT GORE BUT VERY COSTLY TO AMERICAN INDUSTRY MOREOVER GOVERNMENT REGULATION TENDS TO BE ESPECIALLY BURDENSOME TO SMALL BUSINESS WHICH CREATED MOST OF THE JOBS IN THE 1980S AT THE SAME TIME PRESIDENT CLINTON IS PROPOSING SOME DIRECT JOB CUTS WHICH MAY BE HIGHLY DESIRABLE IN THEIR OWN RIGHT BUT ARE JOB CUTS NONETHELESS HE SAYS HE WANTS TO ELIMINATE 100000 FEDERAL JOBS TO MAKE THE GOVERNMENT MORE EFFICIENT MORE IMPORTANT HE WANTS TO ACCELERATE THE DEFENSE CUTBACKS AND THAT IS A MAJOR ITEM STEPHEN S ROACH AN ECONOMIST AT MORGAN STANLEY & CO NOTES THAT DEFENSE DOWNSIZING HAS ALREADY ELIMINATED MORE THAN ONE MILLION JOBS FROM THE MILITARYINDUSTRIAL COMPLEX AND MOST STUDIES SUGGEST THAT ANOTHER ONE MILLION JOBS IN THE DEFENSE SECTOR WILL BE CUT BY THE END OF 1996 AN OUTCOME THAT COULD WELL BE ON THE CONSERVATIVE SIDE THAT MAY HELP THE ECONOMY EVENTUALLY BUT IS COSTING JOBS NOW THE HEALTHCARE PROPOSALS UNDER DISCUSSION ARE LIKELY TO CUT BOTH WAYS AS WELL ALTHOUGH THE EVERESCALATING MEDICAL BURDEN ON THE ECONOMY SIMPLY MUST BE REDUCED ANY SUCH REDUCTION OR EVEN A LEVELINGOFF WOULD INFLICT DAMAGE EDWARD YARDENI OF CJ LAWRENCE INC NOTES THAT THE HEALTHCARE INDUSTRY BY ADDING 545000 JOBS HAS ACCOUNTED FOR TWOTHIRDS OF THE JOB GAINS SINCE THE EXPANSION STARTED IN APRIL 1991 PARADOXICALLY EVEN SOME CLINTON PROPOSALS DESIGNED TO HELP AMERICAN INDUSTRY MAY DISCOURAGE HIRING IF AN INVESTMENT TAX CREDIT DOES SPUR COMPANIES TO STEP UP FURTHER THEIR CAPITAL SPENDING PRESUMABLY THE AUTOMATED LABORSAVING EQUIPMENT THAT THEY BUY MAY ELIMINATE SOME WORKERS ALL THESE DEPRESSANTS ON THE LABOR MARKET THE CLINTON PEOPLE EXPECT WILL BE ALLEVIATED BY A FEDERAL PROGRAM TO CREATE 500000 JOBS THEIR MAIN HOPE HOWEVER LIES IN THEIR ANTICIPATION OF FURTHER DROPS IN INTEREST RATES AS AND IF BUDGET DEFICITS DWINDLE BY COMING UP WITH A CREDIBLE DEFICITREDUCTION PLAN SAYS BRUCE STEINBERG OF MERRILL LYNCH & CO THE CLINTON ADMINISTRATION MAY ULTIMATELY PROVIDE FAR MORE STIMULUS TO THE ECONOMY VIA LOWER INTEREST RATES THAN IT COULD POSSIBLY HAVE DONE BY PROPOSING A MORE TRADITIONAL TAX AND SPEND PLAN LOWER RATES BOTH REDUCE INTEREST EXPENSE AND LOWER THE COST OF CAPITAL BUT MANY ECONOMISTS SAY JOBCREATING INVESTMENT IS INFLUENCED MORE BY MARKET DEMAND AND PROFIT PROSPECTS THAN INTEREST RATES AND EVEN IF THE PRESIDENT'S BET ON LOWER RATES SUCCEEDS THE JOB MARKET IS LIKELY TO STAY WEAK FOR SOME YEARS 9303080026 930308 WHAT'S NEWS BUSINESS AND FINANCE DEMOCRATS REACHED TENTATIVE AGREEMENT ON ADDITIONAL SPENDING CUTS OF AS MUCH AS 55 BILLION OVER FIVE YEARS TO ENABLE CLINTON'S BUDGET PROPOSAL TO MOVE FORWARD IN CONGRESS THIS WEEK IT APPEARS THE PARTY LEADERSHIP MAY BE ABLE TO AVOID A CONFRONTATION IN THE INITIAL LEGISLATIVE TEST A BUDGET RESOLUTION FOR THE ADMINISTRATION'S ECONOMIC PLAN THE UNEMPLOYMENT RATE FELL TO 7 LAST MONTH FROM 71 IN JANUARY THE SURPRISINGLY STRONG JOBS REPORT SUGGESTS THE US ECONOMY IS NOW IN A SOLID RECOVERY BUT THAT BUSINESSES ARE STILL TENTATIVE ABOUT THE FUTURE STOCKS SURGED ON THE JOBS DATA BUT FELL BACK TO CLOSE MIXED WITH THE DOW JONES INDUSTRIAL AVERAGE GAINING 567 POINTS TO 340458 BOND PRICES FINISHED GENERALLY WITH SMALL LOSSES GERMANY'S CENTRAL BANK EASED MONETARY POLICY UNEXPECTEDLY BY CUTTING THE INTEREST RATE ON A KEY OPENMARKET FINANCING INSTRUMENT THE MOVE IS A CAUTIOUS SIGNAL THAT OTHER REDUCTIONS MAY FOLLOW AS THAT NATION'S RECESSION DEEPENS THE DOLLAR ROSE SHARPLY IN REACTION TO THE GERMAN RATE CUT SEPARATELY SPECULATORS ARE BETTING THAT FRANCE'S CONSERVATIVE OPPOSITION EXPECTED TO WIN IN THE COMING ELECTIONS WILL ABANDON EUROPE'S EXCHANGE RATE MECHANISM AND DEVALUE THE FRANC AMERICAN EXPRESS PLANS TO RAISE NEARLY 12 BILLION BY SELLING MORE THAN HALF OF ITS 54 STAKE IN FIRST DATA ITS CREDITCARD PROCESSING UNIT THE MOVE COMES AS THE PARENT'S NEW CHIEF EXECUTIVE HARVEY GOLUB TRIES TO WOO SHAREHOLDERS AFTER THE ROCKY DEPARTURE OF PREDECESSOR JAMES D ROBINSON III COMPAQ COMPUTER TODAY WILL CUT PRICES ON ITS DESKTOP COMPUTERS BY AS MUCH AS 15 THE MOVE COMES EVEN AS CHIEF EXECUTIVE ECKHARD PFEIFFER SAYS THE COMPUTER MAKER'S STRATEGY OF CUTTHROAT PRICING MAY BE EASING MANY WORLD TRADE CENTER TENANTS IN THE COMPLEX'S TWIN TOWERS WILL TRY TO BREAK THEIR LEASES IF THE TOWERS AREN'T REOPENED BY THE END OF APRIL SAY REALESTATE BROKERS AND LAWYERS MERRILL LYNCH AWARDED ITS TOP TWO EXECUTIVES 1992 PAY PACKAGES CURRENTLY VALUED AT MORE THAN 78 MILLION EACH AMID RECORD EARNINGS AT THE NATION'S LARGEST BROKERAGE FIRM MUSIC RETAILERS SELECTED A SENSORMATIC ELECTRONICS ANTITHEFT SYSTEM TO FIGHT PILFERAGE OF COMPACT DISKS IN THEIR NEW SMALLER PACKAGES MARRIOTT IS NOW PROPOSING TO MODIFY ITS MUCHCRITICIZED PLAN TO SPLIT INTO A PROFITABLE HOTEL ARM AND A REALESTATE ARM LOADED WITH DEBT SAID AN ATTORNEY FAMILIAR WITH TALKS BETWEEN THE COMPANY AND ITS BONDHOLDERS TURNER BROADCASTING IS IN A DISPUTE WITH ATLANTA OFFICIALS OVER THE EVENTUAL USE OF THE STADIUM PLANNED FOR THE CITY'S 1996 SUMMER OLYMPICS JAPANESE STOCKS SURGED 4 MONDAY MORNING WHEN INITIAL BUYING BY PUBLICSECTOR FUNDS SET OFF A RALLY IN THE MARKET'S MORE INFLUENTIAL SHARES THE COMPTROLLER OF THE CURRENCY PLANS TO EXPAND ITS BANKEXAMINATION PROCESS TO DO A BETTER JOB OF FERRETING OUT MORTGAGELOAN DISCRIMINATION COMMODITY PRICES ARE FALLING BECAUSE OF THE ECONOMIC SLUMP IN JAPAN WHICH IS EXTRAORDINARILY DEPENDENT ON RAW MATERIAL IMPORTS A VON ROLL UNIT'S HAZARDOUSWASTE INCINERATOR IN OHIO MAY BEGIN A TRIAL BURN A US JUDGE RULED THE ISSUE DREW NATIONAL ATTENTION IN DECEMBER WHEN ALBERT GORE ADDRESSED ENVIRONMENTAL CONCERNS ABOUT THE OPERATION BONDS LEHMAN BROTHERS TREASURY INDEX 509009 OFF 724 COMMODITIES OIL 2093 A BARREL OFF 14 CENTS DOW JONES FUTURES INDEX 12744 UP 078 SPOT INDEX 12408 OFF 055 DOLLAR 11763 YEN UP 085 16684 MARKS UP 00299 9303080025 930308 WHAT'S NEWS WORLDWIDE BOMBING INVESTIGATORS SOUGHT DATA ABOUT A BLIND ISLAMIC CLERIC THOUGH A MOTIVE FOR THE WORLD TRADE CENTER BLAST IS STILL UNCLEAR AUTHORITIES FOCUSED ON A POSSIBLE LINK BETWEEN A NEW JERSEY MAN ARRESTED LAST WEEK AND THE CLERIC SHEIK OMAR WHO HAS PREACHED IN THE NEW YORK AREA THE BOMBING SUSPECT MOHAMMED SALAMEH OF JERSEY CITY REMAINED JAILED OVER THE WEEKEND OFFICIALS UNCOVERED A STORAGE LOCKER IN JERSEY CITY CONTAINING BOMB PARTS ALSO A LINK EMERGED BETWEEN THE CLERIC AND A SECOND MAN ARRESTED IN A RELATED SEARCH EXPLOSIVES EXPERTS USED SCAFFOLDING TO LOWER THEMSELVES INTO THE GIANT BOMB CRATER UNDER THE TWIN TOWERS EXPANDING THEIR SEARCH FOR CLUES AFTER CONSTRUCTION WORKERS SHORED UP THE BASEMENT LEVELS ASPIN SAID HE WOULD TRY TO BE FAIR TO ALL REGIONS OF THE COUNTRY WHEN HE ANNOUNCES A LIST OF PROPOSED BASE CLOSINGS NEXT WEEK THE DEFENSE SECRETARY DECLINED TO SAY HOW MANY BASES HE WILL RECOMMEND FOR CLOSURE ALTHOUGH PENTAGON AIDES SAY THE ARMED SERVICES HAVE GIVEN HIM SUGGESTIONS FOR CLOSING ABOUT THREE DOZEN INSTALLATIONS HEAVY SERB SHELLING WAS REPORTED AT SREBRENICA A MUSLIMHELD TOWN IN EASTERN BOSNIA AT THE UN YUGOSLAV PEACE TALKS RECESSED SATURDAY FOR SEVERAL DAYS UN CHIEF BOUTROSGHALI SAID THAT IF WARRING FACTIONS FAIL TO ACCEPT A PEACE ACCORD UN MEMBERS MIGHT HAVE TO SEND GROUND TROOPS THE LEADER OF AN ARMED CULT IS BECOMING IRRITABLE AND HAS REJECTED PROPOSALS TO END A WEEKLONG STANDOFF AT HIS COMPOUND NEAR WACO TEXAS AN FBI AGENT SAID POLICE SAID THAT DAVID KORESH 33 LEADER OF THE BRANCH DAVIDIANS SECT TURNED DOWN A SURRENDER OFFER THAT INCLUDED THE RELEASE OF HIS MORE THAN 100 FOLLOWERS INSIDE THE COMPOUND GERMANY'S FARRIGHT REPUBLICANS WON OVER 8 OF THE VOTE IN ELECTIONS IN THE WESTERN STATE OF HESSEN ACCORDING TO LATE RESULTS IN FRANKFURT NEARLY ONE IN 10 VOTERS CHOSE THE FAR RIGHT THE RIGHTIST SURGE CAME MAINLY AT THE EXPENSE OF THE LEFTIST SOCIAL DEMOCRATS RATHER THAN KOHL'S RULING CHRISTIAN DEMOCRATS ITALY'S GOVERNMENT APPROVED MEASURES TO LIGHTEN SOME PENALTIES FOR THOSE INVOLVED IN THE COUNTRY'S WIDENING CORRUPTION SCANDAL PROTESTS AND A PARLIAMENTARY BATTLE ARE LIKELY THIS WEEK AS THE AMATO GOVERNMENT FACES OPPOSITION TO ITS SOCALLED POLITICAL SOLUTION APPROVED FRIDAY AFTER A NINEHOUR CABINET MEETING AFGHAN GUERRILLAS SIGNED A PEACE PACT WITH GOVERNMENT LEADERS FOLLOWING TALKS IN PAKISTAN THE TWO SIDES AGREED ON A POWERSHARING PLAN AIMED AT ENDING FIGHTING THAT HAS KILLED 5000 PEOPLE IN AFGHANISTAN UNDER THE ACCORD PRESIDENT RABBANI AND HIS ARCHRIVAL HARDLINER HEKMATYAR WILL SHARE POWER AND NAME A CABINET A FORMER POLITICAL KINGPIN WAS ARRESTED IN TOKYO SATURDAY ON SUSPICION OF TAX EVASION UNTIL SIX MONTHS AGO SHIN KANEMARU WAS THE BACKROOM STRONGMAN OF THE RULING LIBERAL DEMOCRATIC PARTY THOUGH HE HIMSELF WAS NEVER JAPAN'S PRIME MINISTER HE PLAYED A ROLE IN CHOOSING AND MANIPULATING THE PAST THREE YELTSIN SAID THAT RUSSIA WAS IN THE GRIP OF A CONSTITUTIONAL CRISIS AND THAT A REFERENDUM ON WHO RULES THE COUNTRY SHOULD GO AHEAD IN A RADIO INTERVIEW THE PRESIDENT SAID HE WANTED TO REACH AN ACCORD WITH CONSERVATIVES WHO PLAN TO CHALLENGE HIM DURING THIS WEEK'S SESSION OF THE LEGISLATURE A FOURTH AMERICAN HAS BEEN ARRESTED BY ISRAELI AUTHORITIES FOR SUSPECTED LINKS TO THE RADICAL MUSLIM MOVEMENT HAMAS ISRAEL RADIO REPORTED SEPARATELY THE ISRAELI ARMY ANNOUNCED THAT IT WILL REOPEN THE OCCUPIED GAZA STRIP TODAY ALMOST A WEEK AFTER IT WAS SEALED OFF FOLLOWING THE FATAL STABBING BY A GAZA RESIDENT OF TWO ISRAELIS IN TEL AVIV FRESH CLAN FIGHTING ERUPTED IN SOMALIA'S SOUTHERN PORT OF KISMAYU AND SPORADIC GUNFIRE COULD BE HEARD AROUND THE CITY A US MILITARY OFFICIAL SAID US TROOPS MEANWHILE WITHDREW FROM KISMAYU LEAVING IT IN THE HANDS OF BELGIAN SOLDIERS ANGOLAN REBELS OFFERED TO RENEW PEACE TALKS WITH THE GOVERNMENT AFTER CLAIMING VICTORY IN A BATTLE FOR THE COUNTRY'S SECONDLARGEST CITY A REBEL GENERAL SAID THE INSURGENTS HAD OVERRUN THE LAST TWO ANGOLAN ARMY GARRISONS IN HUAMBO AND CAPTURED 5000 LOYALIST SOLDIERS THE GOVERNMENT LATER CONFIRMED THE REBEL REPORTS 9303080024 930308 BUSINESS BRIEF GENERAL DYNAMICS ITS CHAIRMAN NAMED IN HOLDER'S LAWSUIT NEW YORK A SHAREHOLDER FILED A LAWSUIT AGAINST GENERAL DYNAMICS CORP ALLEGING THAT THE HUGE DEFENSE CONTRACTOR MISLED INVESTORS LAST YEAR IN ORDER TO BUY BACK ITS STOCK AT AN ARTIFICIALLY DEPRESSED PRICE THE SUIT WHICH ALSO NAMES WILLIAM ANDERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GENERAL DYNAMICS AS A DEFENDANT SEEKS CLASSACTION STATUS ON BEHALF OF ALL SHAREHOLDERS WHO PARTICIPATED IN THE COMPANY'S DUTCH AUCTION BUYBACK OF SHARES LAST JUNE AND JULY IN THAT BUYBACK THE FALL CHURCH VA DEFENSE CONCERN BOUGHT ABOUT 30 OF ITS STOCK OUTSTANDING OR MORE THAN 13 MILLION SHARES FOR AS MUCH AS 7225 A SHARE A COMPANY SPOKESMAN DECLINED TO COMMENT ON THE LAWSUIT IN A DUTCH AUCTION SELLERS PICK A PRICE AT WHICH THEY'RE WILLING TO SELL THUS ALL THE STOCK ISN'T REPURCHASED AT THE SAME PRICE ACCORDING TO THE SUIT AT THE TIME OF THE BUYBACK THE COMPANY MISLED SHAREHOLDERS BY TELLING THEM THAT IT PLANNED TO FOCUS ON FOUR CORE BUSINESSES TACTICAL AIRCRAFT NUCLEAR SUBMARINES ARMORED VEHICLES AND SPACELAUNCH SYSTEMS THE LAWSUIT SAYS THAT IN DECEMBER SIX MONTHS AFTER THE BUYBACK GENERAL DYNAMICS ANNOUNCED PLANS TO SELL ITS TACTICAL AIRCRAFT UNIT TO LOCKHEED CORP FOR 15 BILLION SINCE THE LOCKHEED DEAL WHICH WAS COMPLETED LAST WEEK GENERAL DYNAMICS STOCK HAS STAYED WELL ABOVE 100 A SHARE THAT MEANS THE SHAREHOLDER LAWSUIT ALLEGES THE 7225 PRICE WAS ARTIFICIALLY DEPRESSED BECAUSE INVESTORS BELIEVED THAT GENERAL DYNAMICS WOULD REMAIN A GOING CONCERN AND NOT BE LIQUIDATED THE SALE OF THE TACTICAL AIRCRAFT UNIT CONTINUED MR ANDERS'S TRACK RECORD OF SELLING PARTS OF GENERAL DYNAMICS RAISING QUESTIONS AMONG INDUSTRY ANALYSTS ABOUT WHETHER HIS GOAL IS TO LIQUIDATE THE COMPANY AND MAXIMIZE ITS STOCK PRICE FOR THE REMAINING SHAREHOLDERS MUCH OF THAT STOCK IS HELD BY INTERESTS CONTROLLED BY WARREN BUFFETT AND THE CROWN FAMILY OF CHICAGO LEGAL DOCUMENTS PREPARED FOR THE BUYBACK EMPHASIZED THE COMPANY'S PLANS TO MAINTAIN THE FOUR CORE UNITS BUT DIDN'T RULE OUT THE POSSIBILITY OF A SALE 9303080023 930308 ASIA'S HOTEL INDUSTRY CAN ANTICIPATE MIDRANGE GROWTH MANAGEMENT RIVALRY BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG IN THE 1980S ASIA'S HOMEGROWN HOTEL CHAINS CAME INTO THEIR OWN ADDING SUCH NOWUBIQUITOUS NAMES AS REGENT MANDARIN ORIENTAL NEW WORLD AND SHANGRILA TO THE ROSTER OF ESTABLISHED GLOBAL CHAINS SERVING JETSETTERS BUSINESS EXECUTIVES AND FIVESTAR TOURISTS ACROSS THE REGION SO WHAT'S IN STORE FOR THE '90S IN SHORT MORE GROWTH BUT WITH A DIFFERENCE ASIA'S DYNAMIC ECONOMIES RISING DISPOSABLE INCOME AND BOOMING TRADE AND TOURISM MEAN THAT WHILE THE FIVESTAR MARKET WILL CONTINUE TO EXPAND APACE THE REGION WILL ALSO WITNESS RAPID DEVELOPMENT OF THE LONGNEGLECTED MIDRANGE MARKET AND IN THIS NEW AREA THE PIONEERS ARE A PACK OF RELATIVE NEWCOMERS TO THE HOTEL BUSINESS INDEED RECENT STARTUPS SUCH AS ALLSON INTERNATIONAL HOTELS & RESORTS CENTURY INTERNATIONAL HOTELS LTD KYZ INTERNATIONAL LTD AND SMI HOTELS & RESORTS ARE CROWDING INTO THE ALREADY PACKED HOTELMANAGEMENT FIELD HEIGHTENING COMPETITION FOR MANAGEMENT CONTRACTS THAT SPELLS A CLEAR ADVANTAGE FOR TWO GROUPS HOTEL OWNERS AND TRAVELERS THE '90S WILL BE THE DECADE WHERE THE OWNERS WILL HAVE A WIDER MENU FROM WHICH TO CHOOSE WHO WILL MANAGE THEIR ASSETS AND UNDER WHAT TERMS SAYS A ANTONIO ZAMORA ITT SHERATON CORP'S NEW SENIOR VICE PRESIDENT ASIAPACIFIC THE NEW ASIABASED HOTEL OPERATORS HE ADDS ARE PERHAPS FILLING IN CERTAIN SEGMENTS OF THE MARKET THAT HAVE NOT BEEN ADDRESSED BY THE LARGE CHAINS FOR TRAVELERS THIS MEANS MORE CHOICES AS NEW HOTELS OPEN IN EXISTING AND JUSTDISCOVERED RESORT DESTINATIONS IN SECONDARY CITIES AND IN THE UNDERSERVED MIDDLE OF THE MARKET SAYS ROBERT STILES GROUP MANAGING DIRECTOR OF HONG KONGBASED HOTEL CONSULTANCY HORWATH ASIA PACIFIC PAST BUILDING BOOMS HAVE CATERED ALMOST EXCLUSIVELY TO THE FIVESTAR GUEST HE SAYS NOW INDUSTRY GROWTH WILL BETTER SUIT THE NEEDS OF MIDLEVEL ASIAN BUSINESS TRAVELERS YOUTHFUL TOURISTS AND BARGAINSEEKING CLIENTS FROM AUSTRALIA NORTH AMERICA AND EUROPE HE SAYS CERTAINLY THERE'S PLENTY OF ROOM FOR GROWTH FOR EVERY GATEWAY CITY OR COUNTRY MARKET THAT BECOMES OVERBUILT THERE IS ANOTHER AREA IN THE REGION CRYING FOR ROOMS FRESH FIELDS BECKON IN INDOCHINA AND PARTS OF MALAYSIA INDONESIA AND MUCH OF CHINA THOUGH THESE UPANDCOMING AREAS CARRY MORE RISK THAN SAY BANGKOK OR JAKARTA DID 15 YEARS AGO THUS GLOBAL HOTELMANAGEMENT COMPANIES SUCH AS SHERATON AND HYATT INTERNATIONAL CORP ARE CONTINUING TO EXPAND THEIR ASIAN PRESENCE MEANWHILE ESTABLISHED REGIONAL GROUPS REGENT INTERNATIONAL HOTELS MANDARIN ORIENTAL INTERNATIONAL NEW WORLD HOTELS INTERNATIONAL AND SHANGRILA INTERNATIONAL HOTELS & RESORTS AMONG OTHERS ARE PLANTING THEIR FLAGS FARTHER AFIELD EXCLUDING JAPANESE AND HONG KONG COMPANIES THAT BOUGHT ENTIRE CHAINS IN THE US DURING THE 1980S BOOM SOME OF THE RELATIVE NEWCOMERS TO HOTEL MANAGEMENT IN THE REGION ARE COUNTRYBASED HOTEL CHAINS THAT ARE EXPANDING BEYOND THEIR NATIONAL BORDERS OR OUT OF THEIR TRADITIONAL MARKETS THAILAND'S DUSIT THANI CORP AND AUSTRALIA'S SOUTHERN PACIFIC HOTELS CORP ARE TWO OTHER UPSTARTS ARE EXPANDING BY BECOMING MASTER FRANCHISEES OF OTHER COMPANIES' BRANDS HONG KONGBASED KYZ IS PUSHING USBASED PROMUS COS' EMBASSY SUITES WHILE SINGAPORE'S CITY DEVELOPMENTS LTD PART OF THE HONG LEONG GROUP IS FRANCHISING MANOR CARE INC'S CHOICE HOTELS MARQUES IN ASIA IN SINGAPORE PROPERTY GROUP OVERSEAS UNION ENTERPRISES LTD HAS TWO HOTELMANAGEMENT UNITS WHICH TOGETHER HAVE NINE PROPERTIES UNDER THEIR BANNERS ONE OF THE SUBSIDIARIES IS SMI HOTELS & RESORTS SINGAPORE'S STRAITS STEAMSHIP LAND LTD IS PUTTING TOGETHER A SIMILAR UNIT OTHER REGIONAL UPSTARTS ARE STICKING TO BASICS AND GOING AFTER PLAIN HOTELMANAGEMENT CONTRACTS WHEREVER THEY CAN FIND THEM CENTURY AND ALLSON FIT THIS MOLD WHETHER GLOBAL CHAIN ESTABLISHED REGIONAL HOTEL OPERATOR OR NEWCOMER HOWEVER THE RULES OF THE GAME ARE SHIFTING IN THE FACE OF INCREASED COMPETITION FOR MANAGEMENT CONTRACTS AND THE STIFFER DEMANDS OF HOTEL OWNERS AND INVESTORS PURE MANAGEMENT CONTRACTS ARE VERY DIFFICULT TO GET THESE DAYS SAYS RUDIGER KOPPEN CHAIRMAN OF KYZ AND FORMER CHIEF OF HOLIDAY INN WORLDWIDE'S ASIANPACIFIC OPERATIONS OWNERS ARE NO LONGER SITTING BACK AND LETTING THE CHAINS MANAGE THEIR ASSETS INDEED INTERVIEWS WITH A NUMBER OF ASIAN HOTEL OPERATORS INDICATE THAT OWNERS ARE LESS PREPARED TO PAY THE FAT FEES THEY ONCE DID THEY LOOK FOR SHORTER CONTRACTS EASY TERMINATION PROVISIONS AND PERFORMANCE GUARANTEES SOME WANT TECHNOLOGY TRANSFER SO THEY CAN EVENTUALLY OPERATE THEIR PROPERTIES THEMSELVES OTHERS INSIST THAT THE MANAGEMENT COMPANIES TAKE SIGNIFICANT EQUITY IN THE HOTEL OR THAT THEY SPLIT THE MANAGEMENT FEES AND RUN THE HOTEL IN A JOINT VENTURE WITH THE OWNER SPEAKING FOR HOTEL OPERATORS WE ARE CONCESSIONARY BECAUSE THERE'S A NEED TO BE CONCESSIONARY SAYS GEORGE HUELS A FORMER DUSIT THANI EXECUTIVE WHO RECENTLY JOINED STRAITS STEAMSHIP LAND REALISM IS SETTING IN YES IT'S A SEXY BUSINESS WE'RE IN BUT WE'RE EITHER THE DRIVER OF A VOLKSWAGEN OR A ROLLS ROYCE FOR THE MAN WHO OWNS IT THE OWNER HAS A RIGHT TO KNOW WHAT'S GOING ON THIS HARDNOSED APPROACH AMONG OWNERS IS A FAR CRY FROM THE DAYS WHEN THE BIG CHAINS SAID HERE ARE OUR TERMS AND CONDITIONS SIGN HERE AND WE'LL MANAGE THE HOTEL' SAYS ROBERT CHAMBERS DIRECTOR OF HOTELS AND LEISURE ASIAPACIFIC FOR PROPERTY CONSULTANCY COLLIERS JARDINE HONG KONG LTD THAT MADE A LOT OF MONEY FOR THE CHAIN AND NOT A LOT FOR THE OWNERS BUT TODAY HOTEL OWNERS ARE SURROUNDED BY PROFESSIONALS MANY OF THEM FORMER CHAIN EXECUTIVES WHO ADVISE THEM ON HOW TO NEGOTIATE THEIR HOTELMANAGEMENT CONTRACTS IT'S A MUCH MORE LEVEL PLAYING FIELD WITH EQUAL INFORMATION ON BOTH SIDES OF THE FENCE SAYS MR CHAMBERS AND WITH OWNERS GETTING INVOLVED IN HOTEL OPERATIONS AND MANAGEMENT COMPANIES STUMPING UP EQUITY IN HOTELS OLD LINES ARE BEING BLURRED HE SAYS 9303080022 930308 WHO'S NEWS HEARST CORP HEARST CORP NEW YORK THE CLOSELY HELD PUBLISHER AND BROADCASTER NAMED JONATHAN E THACKERAY 56 YEARS OLD GENERAL COUNSEL EFFECTIVE MARCH 15 MR THACKERAY PREVIOUSLY WAS HEAD OF THE LITIGATION GROUP IN THE CLEVELAND OFFICE OF THE LAW FIRM BAKER & HOSTETLER HEARST SAID HE ALSO WILL BE ELECTED A VICE PRESIDENT MR THACKERAY SUCCEEDS VICTOR F GANZI 46 WHO WAS RECENTLY NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL AND LEGAL OFFICER 9303080021 930308 FRAUD CHARGES AGAINST 5 IN S&L CASE ARE REJECTED SAN ANTONIO TEXAS A FEDERAL DISTRICT JUDGE THREW OUT FRAUD CHARGES AGAINST FIVE FORMER OFFICERS OF A TEXAS SAVINGS ASSOCIATION WHO WERE ALLEGED TO HAVE HASTENED THE INSTITUTION'S FAILURE IN 1986 THE OFFICERS CHRISTOPHER GILL HIS TWO BROTHERS PETER GILL AND RICHARDSON GILL EDWARD MATTSON AND MORRIS WOSNIG HAD BEEN CHARGED WITH CONSPIRACY BANK FRAUD AND MISAPPLICATION OF FUNDS THE FIVE WERE INDICTED IN FEBRUARY 1992 AND INDICTED AGAIN IN JULY FOR ALLEGEDLY TAKING 58 MILLION IN EXCESSIVE PAYMENTS IN EARLY 1986 AS GILL SAVINGS ASSOCIATION WAS ABOUT TO FAIL FEDERAL REGULATORS TOOK OVER THE THRIFT IN 1987 THE GOVERNMENT HAS GENERALLY SUCCEEDED IN ITS PROSECUTION OF THRIFT CASES THE US ATTORNEY COULDN'T BE REACHED A SPOKESMAN FOR HIS OFFICE DECLINED TO COMMENT 9303080020 930308 WAHLCO IS EXPECTING NET FOR FIRST PERIOD AFTER SERIES OF LOSSES IRVINE CALIF AFTER FOUR QUARTERS OF NET LOSSES TOTALING 128 MILLION WAHLCO ENVIRONMENTAL SYSTEMS INC HOPES TO MAKE SOME MONEY IN THE FIRST QUARTER OF 1993 SAID HENRY N HUTA PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW THE MAKER OF POLLUTION CONTROL SYSTEMS FOR ELECTRIC POWER PLANTS HAS SLICED ABOUT 10 MILLION FROM ANNUAL OVERHEAD EXPENSES AND IS SEEING A STIRRING OF INTEREST IN ORDERS IN THE DEPRESSED BUSINESS MR HUTA SAID MOREOVER MR HUTA SAID HE BELIEVES THAT LONGDELAYED ORDERS FOR POWER PLANT POLLUTION CONTROL EQUIPMENT WILL BEGIN TO ROLL IN AROUND THE MIDDLE OF THIS YEAR AS AN IMPORTANT 1995 DEADLINE LOOMS UNDER THE FEDERAL CLEAN AIR ACT AFTER OUR LOSS LAST YEAR A BREAKEVEN WOULD BE HEAVEN AND YES WE'RE LOOKING FOR HEAVEN WE HOPE WE WILL MAKE SOME MONEY IN THE FIRST QUARTER MR HUTA SAID IN THE YEARAGO FIRST QUARTER WAHLCO'S LOSS WAS 11 MILLION OR SIX CENTS A SHARE ON REVENUE OF 215 MILLION IT WAS THE FIRST OF A SERIES OF LOSSES AS WAHLCO DIGESTED RECENT ACQUISITIONS AND SAW DEMAND FOR ITS PRINCIPAL PRODUCT EVAPORATE SINCE THEN WAHLCO HAS MOVED ITS HEADQUARTERS TO LESS ELABORATE SPACES IN SANTA ANA CALIF AND SLASHED THE COMPANY'S WORLDWIDE EMPLOYMENT FROM A PEAK OF 970 LAST YEAR TO ABOUT 788 CURRENTLY MR HUTA SAID HE SAID THE ORDER BACKLOG IN WAHLCO'S CORE FLUE GAS CONDITIONING BUSINESS WHICH HAD DWINDLED TO 29 MILLION AT SEPT 30 LAST YEAR FROM 252 MILLION A YEAR EARLIER CLIMBED TO 12 MILLION AT DEC 31 1992 HE SAID THE NUMBER HAS HELD ROUGHLY CONSTANT SINCE DEC GROSS PROFITS IN WAHLCO'S FLUE GAS CONDITIONING BUSINESS ARE ABOUT 40 HIGHER THAN ITS OTHER AREAS WHICH INCLUDE PRODUCTION OF A WIDE ARRAY OF OTHER ENGINEERED PRODUCTS FOR POWER PLANTS AND INDUSTRIAL INSTALLATIONS WAHLCO HAS LONG DOMINATED THE MARKET FOR FLUE GAS CONDITIONING THE COMPANY IS 80OWNED BY SAN DIEGO GAS & ELECTRIC CO THE COMPANY'S 128 MILLION 1992 NET LOSS EQUALED 72 CENTS A SHARE REVERSING 1991'S NET INCOME OF 116 MILLION OR 66 CENTS A SHARE REVENUE IN 1992 TOTALED 819 MILLION AN 8 DROP FROM THE 888 MILLION OF A YEAR EARLIER 9303080019 930308 TAIWAN'S CONSUMER PRICES RISE TAIPEI TAIWAN'S CONSUMER PRICE INDEX ROSE 3 IN FEBRUARY FROM A YEAR EARLIER TO 10603 AND EDGED UP 03 FROM JANUARY THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS REPORTED THIS COMPARES WITH JANUARY'S CPI GROWTH OF 36 DECEMBER'S RISE OF 34 AND NOVEMBER'S 31 INCREASE THE GOVERNMENT AGENCY SAID THAT SINCE OCTOBER THE CPI HAS HAD A NEW BASE VALUE OF 100 IN 1991 INSTEAD OF THE ORIGINAL BASE VALUE OF 100 IN 1986 UNDER THE NEW BASE VALUE THE AVERAGE CPI IN 1992 STOOD AT 10446 ADVANCING 45 FROM A YEAR EARLIER 9303080018 930308 COMMODITIES ECONOMIC DOWNTURN IN JAPAN TAKES ITS TOLL ON PRICES OF INDUSTRIAL AND LUXURY COMMODITIES BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL JAPAN'S WORSENING ECONOMIC SLUMP IS PUTTING COMMODITY PRICES IN THE DUMP JAPAN ENDURING ITS WORST RECESSION IN 20 YEARS IS EXTRAORDINARILY DEPENDENT ON RAW MATERIAL IMPORTS TO MAKE ITS GIANT ECONOMY TICK WHEN THAT ECONOMY GETS SICK COMMODITY SUPPLIERS WORLDWIDE SUFFER TRADERS AND ANALYSTS SAY THE IMPACT IS MOSTLY ON KEY INDUSTRIAL AND LUXURY COMMODITIES INCLUDING OIL COPPER GOLD SILVER PLATINUM PALLADIUM AND DIAMONDS ANALYSTS RECENTLY CITED JAPAN'S ECONOMIC DOWNTURN AS A MAJOR TRIGGER FOR COPPER'S STEEP DECLINE IN NEW YORK TO BETWEEN 93 CENTS AND 95 CENTS A POUND FOR THE MARCH CONTRACT FROM HIGHS OF 108 AT THE BEGINNING OF THE YEAR JAPAN THE WORLD'S SECONDLARGEST CONSUMER OF COPPER CUT ITS IMPORTS OF COPPER BY AS MUCH AS 12 LAST YEAR ACCORDING TO INDUSTRY ESTIMATES AS THE WORLD'S SECONDLARGEST BASE METALS CONSUMER JAPAN'S SLIDING DEMAND IS DENTING PRICES AND HURTING PRODUCERS SAYS ANGUS MACMILLIAN A LONDONBASED ANALYST WITH BILLITONENTHOVEN METALS LTD HE PREDICTS THAT JAPANESE IMPORTS WHICH ACCOUNT FOR NEARLY A FIFTH OF WORLD BASEMETAL CONSUMPTION WILL REMAIN DEPRESSED WELL INTO 1993 ANALYSTS AND BROKERS IN NEW YORK CONCUR AS THE JAPANESE ECONOMY CONTINUES TO WEAKEN IT'S AN INCREASINGLY GLOOMY MARKET FOR WORLD COPPER SAYS RICHARD HIRSCH A SENIOR BROKER WITH SHARPS PIXLEY INC MR HIRSCH NOTES THAT SUPPLIERS OF COPPER ALUMINUM AND A NUMBER OF OTHER BASE METALS USED HEAVILY IN INDUSTRY ARE SUFFERING NOT ONLY FROM JAPAN'S ECONOMIC MALAISE BUT ALSO FROM GROWING DOMESTIC STOCKPILES AND DECLINING DEMAND FROM GERMANY AND THE REST OF EUROPE HE DOESN'T EXPECT PRICES TO GET MUCH OF A BOOST FROM PRESIDENT CLINTON'S ECONOMIC PACKAGE FOR A WHILE MANY ECONOMISTS HOPED THAT THE JAPANESE ECONOMY HAD TOUCHED BOTTOM AND WAS HEADED UP BUT RECENTLY GROWTH PROJECTIONS HAVE BEEN REVISED DOWNWARD NOT LEAST BECAUSE A STRONG YEN WILL HURT THE EXPORTDRIVEN JAPANESE JUGGERNAUT MERRILL LYNCH'S INTERNATIONAL ECONOMICS DEPARTMENT FOR INSTANCE RECENTLY SAID THAT BLEAK PROSPECTS FOR CONSUMER EXPENDITURES AND BUSINESS CAPITAL SPENDING IN JAPAN PROMPTED A DOWNWARD REVISION OF ITS ESTIMATE OF JAPANESE GROSS DOMESTIC PRODUCT THIS YEAR THE FIRM NOW EXPECTS JAPAN TO SHOW A 04 DECLINE FOR 1993 NOT THE 09 INCREASE PROJECTED LAST MONTH DESPITE OUR EXPECTATIONS OF ANOTHER ROUND OF MONETARY EASING AND A FISCAL STIMULUS PACKAGE OF AS MUCH AS 12 TRILLION YEN PERVASIVE WEAKNESS IN JAPAN'S PRIVATE SECTOR IS LIKELY TO DELAY RECOVERY UNTIL LATE IN 1993 MERRILL LYNCH SAID IN ITS RECENT FORECAST JAPANESE COMMODITY TRADERS ARE ALSO BEARISH BECAUSE OF PROBLEMS IN THEIR HOME MARKET THE COPPER AND ALUMINUM MARKETS ARE DEAD AND THERE'S LITTLE SIGN OF AN UPTURN A LONDONBASED JAPANESE TRADER SAYS AFTER DECLINING LAST YEAR JAPANESE CONSUMPTION OF COPPER AND ALUMINUM WILL EITHER FALL FURTHER OR AT BEST REMAIN AROUND PRESENT LOW LEVELS THE TRADER SAYS SHRINKING JAPANESE PURCHASES HAVE ALSO BUFFETED THE STAINLESSSTEEL MARKET JAPANESE DEMAND FOR STAINLESS STEEL WHICH IS USED EXTENSIVELY IN THE HOME APPLIANCE AUTOMOTIVE AND CONSTRUCTION INDUSTRIES FELL 10 LAST YEAR INDUSTRY EXPERTS SAY AT THE MORE EXOTIC END OF THE RAWMATERIALS ROSTER PRECIOUS METALS AND DIAMONDS AREN'T FARING MUCH BETTER AS THE JAPANESE RECESSION SEEMS TO BE CHANGING JAPANESE BUYING HABITS TRADERS THERE SAY FOLLOWING THE REAL ESTATE AND STOCK MARKET SLUMPS STRONG CONSUMER DEMAND FOR GOLD AND PLATINUM JEWELRY HAS EBBED WITH LOWERPRICED JEWELRY ITEMS BECOMING MORE FASHIONABLE AND JAPANESE INDUSTRIAL DEMAND FOR PLATINUM AND PALLADIUM PRECIOUS METALS USED EXTENSIVELY BY THE AUTOMOTIVE AND ELECTRONICS INDUSTRIES IS ALSO WANING INDUSTRY EXPERTS SAY JAPAN IS THE WORLD'S BIGGEST CUSTOMER FOR PLATINUM YET IT SAW ITS IMPORTS OF THE RARE METAL SLUMP TO 18 MILLION OUNCES LAST YEAR FROM 23 MILLION OUNCES IN 1991 ACCORDING TO OFFICIAL STATISTICS RECENT REPORTS IN THE JAPANESE PRESS THAT LEADING JAPANESE AUTO MAKERS WERE PLANNING TO SLASH THEIR FOREIGN PURCHASES OF PLATINUM A KEY COMPONENT OF CATALYTIC CONVERTERS HELPED TRIGGER A MAJOR SELLOFF IN PLATINUM FUTURES PRICES RECENTLY THE REPORTS CITED THE AUTO MAKERS' CONCERNS ABOUT A WEAK INTERNATIONAL CAR MARKET MEANWHILE JAPANESE GOLD IMPORTS TUMBLED TO 63 MILLION OUNCES LAST YEAR FROM 82 MILLION IN 1991 AND 97 MILLION IN 1990 AND SILVER IMPORTS ARE DOWN 58 FROM LEVELS TWO YEARS AGO THE DIAMOND MARKET REMAINS DEPRESSED JAPANESE TRADERS SAY SOME ANALYSTS BELIEVE HOWEVER THAT THE RECENT STRENGTH IN THE YEN AGAINST THE DOLLAR COULD PROVIDE A SIGNIFICANT IF SHORTLIVED BOOST TO IMPORTANT DOLLARDENOMINATED COMMODITIES SUCH AS GOLD AND OIL TED ARNOLD A LONDONBASED METALS NALYST WITH MERRILL LYNCH BELIEVES THE LOWER PRICES IN YEN WILL STIMULATE DEMAND AND HELP REVERSE THE DOWNWARD TREND EVENTUALLY LOWER PRICES SHOULD INDUCE CONSUMERS TO BUY HE SAYS NOTING THAT IN PREVIOUS ECONOMIC CYCLES A STRONGER YEN HELPED BOOST JAPANESE DEMAND JAPANESE PURCHASES OF SOYBEAN FUTURES WERE UP LAST WEEK FOR EXAMPLE TRADERS SAID AND FRED BRILL AN ENERGY ANALYST WITH PEGASUS ECONOMETRIC GROUP IN HOBOKEN NJ SEES THE STRONG YEN AS AN OPPORTUNITY FOR JAPANESE REFINERS TO FILL UP THEIR TANKS MR BRILL NOTES THAT THE SHARPLY WEAKER JAPANESE ECONOMY IS DAMPING DEMAND FOR OIL IN JAPAN BUT HE POINTS OUT ENERGY DEMAND FROM A NATION OF JAPAN'S SIZE IS SLOW TO CHANGE IT TAKES TIME TO TURN ON AND OFF ON THE OTHER HAND WHEN THE YEN STRENGTHENS REFINERS SEE INSTANTANEOUS COSTSAVINGS AND WILL BUY UP FUTURES CONTRACTS THEY'VE PROBABLY BEEN RESPONSIBLE FOR SOME OF THE RUNUP IN THE CRUDE PRICE LATELY HE SAYS BUT IN THE LONGER TERM MR BRILL SAYS A PROLONGED RECESSION IN JAPAN COULD SEND ENERGY PRICES ON A MUCH MORE SEVERE TRAJECTORY IN THE OPPOSITE DIRECTION INDEED THE WEIGHT OF OPINION AMONG TRADERS AND ANALYSTS IS THAT THE HIGHER YEN WON'T COME TO THE RESCUE THIS TIME AROUND SAYS RAVI BULCHANDANI A SENIOR COMMODITY ANALYST WITH GOLDMAN SACHS IN NEW YORK THE JAPANESE ECONOMY CONTINUES TO STRUGGLE ALONG THE BOTTOM AS A RESULT WE'RE NOT GOING TO SEE ANY GREAT PICKUP IN DEMAND FOR THE WHOLE RANGE OF COMMODITIES ALUMINUM COPPER PLATINUM AMONG OTHERS LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK TRADERS WILL CONTINUE TO LOOK FOR CLUES ABOUT THE FOOD AID THE CLINTON ADMINISTRATION IS FASHIONING FOR RUSSIA GRAIN AND LIVESTOCK PRICES SWUNG WIDELY LAST WEEK AMID REPORTS THAT THE WHITE HOUSE IS CONSIDERING A HUGE AID PACKAGE FOR MOSCOW BUT SOME GRAIN TRADERS SAY IT MIGHT BE SEVERAL WEEKS BEFORE DETAILS SURFACE TRADERS ARE SPECULATING THAT ANY PACKAGE MIGHT INCLUDE FOOD DONATIONS WORTH 500 MILLION TO 1 BILLION AS WELL AS SEVERAL HUNDRED MILLION DOLLARS IN SOME TYPE OF CREDIT ASSISTANCE THE AGRICULTURE DEPARTMENT HAS SAID VERY LITTLE ABOUT THE TYPE OF PACKAGE IT IS CONSIDERING OTHER THAN TO PLAY DOWN THE SPECULATION US WHEAT PRICES FELL FRIDAY AMID PROFITTAKING AS WELL AS SCATTERED DISAPPOINTMENT THAT WEEKS HAVE PASSED WITHOUT A CLEAR IDEA OF HOW ANY AID PACKAGE MIGHT WORK IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY DROPPED NINE CENTS TO SETTLE AT 36825 A BUSHEL THE CLINTON ADMINISTRATION IS CONSIDERING AN AID PACKAGE AS A WAY TO RESTART EXPORTS OF US FARM COMMODITIES TO RUSSIA MOSCOW IS USUALLY A BIG CUSTOMER BUT HASN'T IMPORTED MUCH OF ANYTHING FROM US FARMERS SINCE NOVEMBER WHEN IT BEGAN DEFAULTING ON GRAIN LOANS SPECULATION THAT MEAT MIGHT BE INCLUDED IN ANY AID PACKAGE IS HELPING TO LIFT PRICES OF HOG FUTURES CONTRACTS HOG PRICES HAVE ALSO BEEN SUPPORTED BY SIGNS THAT THERE IS LESS LIVESTOCK AVAILABLE FOR SLAUGHTER IN THE MIDWEST THAN THE GOVERNMENT HAD FORECAST 9303080017 930308 GERMAN BOND MARKET MAY BE IN FOR A FALL BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT INVESTORS HOPING TO EXPLOIT AN EXPECTED SERIES OF BUNDESBANK INTERESTRATE CUTS THIS YEAR ARE BEING WARNED OFF THE GERMAN BOND MARKET WITH RED FLAGS RATE CUTS OUGHT TO BOOST BOND PRICES TRUE BUT GERMANY'S DISORDERED UNITY FINANCES HAVE SKEWED THE RULES AND IN GERMANY'S FATTENED BOND MARKET SAY MANY MARKET WATCHERS A BLESSING COULD FAST BECOME A CURSE THEY REASON A GERMAN BOND MARKET PUMPED UP WITH ANTICIPATION OF SHARP CUTS IN SHORTTERM INTEREST RATES COULD ACTUALLY DROP ONCE THE CUTS ARRIVE AND DEFLATE THE SPECULATIVE FORCES HOLDING UP THE MARKET CAPITAL IS THEN LIKELY PACK UP AND HEAD FOR MORE ATTRACTIVE ALTERNATIVES IN EUROPE AND THE US THE LIKELY RESULT TUMBLING PRICES AND A CURRENCY BITE ON FOREIGN INVESTORS AS THE MARK DEPRECIATES THE MARKET HAS RUN AHEAD OF ITSELF SAYS THOMAS MAYER A MARKET ECONOMIST AT GOLDMAN SACHS IN FRANKFURT THERE IS A FEELING THAT ONCE THE BUNDESBANK GIVES THE MARKET WHAT IT WANTS MAYBE A FULLPOINT CUT PEOPLE WOULD ACTUALLY TAKE THEIR MONEY ELSEWHERE YET GERMAN BOND PRICES WERE BOOSTED AGAIN FRIDAY WHEN THE BUNDESBANK CUT THE INTEREST RATE ON ITS 14DAY SECURITY REPURCHASE AGREEMENTS TO 825 FOR THIS WEEK'S OPERATIONS FROM A PREVIOUS 849 IT WAS THE CLEAREST SIGNAL YET THAT THE BUNDESBANK WAS PREPARING THE MONEY MARKET FOR ANOTHER REDUCTION IN ITS DISCOUNT RATE MARKET PARTICIPANTS NOW WIDELY EXPECT A HALFPOINT REDUCTION AT THE BUNDESBANK'S NEXT POLICY MEETING ON MARCH 18 IN THE SECOND HALF OF 1992 FOREIGN PURCHASES OF GERMAN BONDS TOTALING 123 BILLION MARKS 7507 BILLION WAS MORE THAN DOUBLE 467 BILLION MARKS IN NET PURCHASES BY FOREIGNERS IN THE YEAREARLIER PERIOD THE TREND HAS CONTINUED SO FAR THIS YEAR PRICES ON 10YEAR GERMAN GOVERNMENT BONDS OR BUNDS HAVE BEEN MARCHING HIGHER PRESSURING YIELDS TO 651 ON FRIDAY FROM NEAR 794 LAST JUNE 1 BUT MANY ANALYSTS CLAIM THE FALL IS COMING ONCE THE GREAT WAVE OF PROFITTAKING STARTS AS IT SOMEDAY WILL WATCH OUT BELOW THE F&O BROKERAGE AND SALES DIVISION OF DEUTSCHE BANK AG IN FRANKFURT WARNED IN A REPORT TO CLIENTS BEHIND THE SURGE WERE SEVERAL FACTORS EACH OF WHICH COULD QUICKLY CHANGE THE FIRST WAS THAT THE BUNDESBANK'S RELUCTANCE TO LOWER GERMAN INTEREST RATES KEPT PRESSURE ON OTHER CURRENCIES IN THE EUROPEAN MONETARY SYSTEM TRIGGERING LAST YEAR'S CURRENCY CRISIS AND LEAVING THE EMS EXCHANGERATE MECHANISM VULNERABLE TO REALIGNMENT SPECULATION AS THE FRENCH FRANC AND DANISH KRONE WERE BESET WITH DEVALUATION RUMORS ONCE THE BUNDESBANK EASES THOSE PRESSURES BY HAULING DOWN GERMAN RATES FIXEDINCOME MARKETS WITH LOWER INFLATION AND BETTER ECONOMIC FUNDAMENTALS FRANCE AND DENMARK FOR EXAMPLE COULD GROW IN APPEAL AS CURRENCY RISK SUBSIDES OUTSIDE THE EMS HIGH GERMAN INTEREST RATES SO FAR HAVE PROTECTED THE MARK FROM LOSING GROUND AGAINST THE DOLLAR DESPITE THE WIDENING DIVERGENCY BETWEEN THE RECOVERING US ECONOMY AND A GERMAN ECONOMY SINKING DEEPER INTO RECESSION ANALYSTS PREDICT THAT THE BUNDESBANK'S DISCOUNT RATE COULD CLOSE 1993 AT 6 OR BELOW AS THE CENTRAL BANK RESPONDS TO LOWER INFLATION RISKS FROM MODERATE WAGE INCREASES AND A RECESSIONARY ECONOMY THE CONSENSUS IS THAT THIS COULD RESULT IN THE DOLLAR APPRECIATING TO ABOUT 185 MARKS BY THE THIRD QUARTER EXPERIENCE SHOWS THAT ONCE THE BUNDESBANK STARTS CUTTING RATES COME DOWN FAIRLY QUICKLY SAID WARREN OLIVER AN ECONOMIST WITH SG WARBURG IN LONDON EVEN A CAUTIOUS BUNDESBANK APPROACH ON INTEREST RATES POSES STILL ANOTHER DANGER TO GERMAN BOND MARKETS A BREAKUP OF THE ERM THIS SPRING WITH LITTLE PROSPECT OF THE BUNDESBANK SLASHING RATES BY THE NECESSARY THREE TO FOUR PERCENTAGE POINTS OVERNIGHT THERE IS EVERY LIKELIHOOD THAT THE ERM WILL NOT SURVIVE UNTIL THE SUMMER JUDGED ABN AMRO SECURITIES LTD IN A REPORT TO CUSTOMERS THE FRENCH ELECTIONS LATER THIS MONTH AND THE DANISH REFERENDUM ON THE MAASTRICHT TREATY ARE OBVIOUS FLASHPOINTS IT SAID THE THINKING HERE IS THAT A FREEFLOAT OF THE REMAINING ERM CURRENCIES WOULD MOOT THE MARK'S SAFE HAVEN USEFULNESS AT THE SAME TIME OTHER EUROPEAN CENTRAL BANKS COULD LOWER INTEREST RATES FASTER THAN BEFORE IMPROVING THEIR ECONOMIC OUTLOOK AND DRIVING UP BOND PRICES YET THE DOWNWARD SCOPE FOR LONGTERM GERMAN BOND YIELDS APPEAR LIMITED NO MATTER WHAT THE BUNDESBANK DOES ON SHORTTERM RATES WESTERN GERMAN ANNUAL INFLATION IS SHOWING SIGNS OF SLIPPING BACK BELOW 4 BUT MANY ANALYSTS DON'T EXPECT INFLATION MUCH LOWER THAN 35 THIS YEAR THE GERMAN MARKET IS ALSO BRACING FOR MORE GOVERNMENT BORROWING TO FINANCE UNITY ALONE BONN'S FEDERAL BORROWING REQUIREMENT IS SET TO RISE TO 52 BILLION MARKS THIS YEAR FROM 39 BILLION MARKS IN 1992 MOREOVER RAPID RATE REDUCTIONS BY THE BUNDESBANK COULD BOOST LONGTERM YIELDS BY REIGNITING INFLATION FEARS IT REMAINS UNCLEAR WHETHER CHANCELLOR HELMUT KOHL CAN GAIN THE POLITICAL CONSENSUS HE NEEDS TO REORDER GERMANY'S UNRULY FINANCES IN TIME TO BEGIN ABORBING 400 BILLION MARKS IN FORMER EAST GERMAN DEBT IN 1995 JULIAN JESSOP A MARKET ECONOMIST WITH MIDLAND GLOBAL MARKETS RESEARCH IN LONDON ALREADY SEES TROUBLE IN 1994 WHEN GERMANY FACES NO FEWER THAN 20 FEDERAL AND STATE ELECTIONS AND A STRONG DISINCENTIVE TO CURB SPENDING A BIG ELECTION YEAR MEANS BIG FISCAL RISKS AND A THREAT TO THE BOND MARKET MR JESSOP SAYS DEUTSCHE BANK RESEARCHERS BELIEVE THAT LONGTERM GERMAN YIELDS COULD RISE TO ABOUT 7 IN 12 MONTHS FROM AROUND 66 CURRENTLY BY CONTRAST THEY PROJECT LONGTERM YIELDS FALLING IN FRANCE THE UK ITALY DENMARK BELGIUM PORTUGAL SPAIN AND PORTUGAL ONLY THE NETHERLANDS WHOSE MARKET IS MOST CLOSELY LINKED TO GERMANY'S COULD SEE RISING YIELDS THEY SAY AS MOST OF EUROPE SLIPS INTO RECESSION ON GERMANY'S COATTAILS EQUITY MARKETS WOULD APPEAR TO BE POOR BETS UNLESS INVESTORS ARE LOOKING FOR LONGTERM HOLDS AT BARGAIN PRICES LATER IN THE YEAR FOR MANY INVESTORS THAT LEAVES THE DECISION BETWEEN FIXEDINCOME INVESTMENTS ELSEWHERE IN EUROPE OR A SHIFT INTO THE US EQUITY MARKET SEEN AS A BETTER OPTION THAN THE US BOND MARKET WHERE PROSPECTS FOR RECOVERYDRIVEN INFLATION COULD RAISE YIELDS AND DEPRESS PRICES WHAT IS MORE AN APPRECIATING DOLLAR WOULD GIVE EUROPEANS A CURRENCY BONUS IN ANY EVENT SAYS ROS LIFTON AN ECONOMIST AT THE NOMURA RESEARCH INSTITUTE IN FRANKFURT IF YOU LOOK AROUND EUROPE FOR VALUE IN MARKETS GERMANY IS NOT THE ANSWER 9303080016 930308 GLOBAL TEMPERATURE IS LOWEST IN DECADE DUE TO '91 VOLCANO SHADING' CAUSED BY PINATUBO SLICES SUMMER READINGS IN BOTH NORTH AND SOUTH BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW WEATHER REPORT MAY COOL OFF THE HEATED DEBATE OVER GLOBAL WARMING FOR A WHILE A STUDY SAID THAT TEMPERATURES IN THE LAST SUMMER DROPPED TO A 10YEAR LOW IN THE NORTHERN HEMISPHERE AND TO A 15YEAR LOW IN THE SOUTHERN HEMISPHERE ACCORDING TO THE EARTH SYSTEM SCIENCE LAB AT THE UNIVERSITY OF ALABAMA IN HUNTSVILLE THE STUDY WHICH HAS USED SATELLITES TO MEASURE MICROWAVES EMITTED FROM OXYGEN MOLECULES SINCE 1978 ATTRIBUTED THE DROP TO ATMOSPHERIC SHADING CAUSED BY THE 1991 ERUPTION OF THE PINATUBO VOLCANO IN THE PHILIPPINES THE INTENSITY OF THE MICROWAVE ENERGY CAN BE USED TO MEASURE HEAT JOHN CHRISTY OF THE EARTH SYSTEM SCIENCE LAB SAID THE FEBRUARY DECREASE IN AVERAGE GLOBAL TEMPERATURES OF 02 DEGREE FAHRENHEIT HAD EXTRA SIGNIFICANCE BECAUSE IT COINCIDED WITH A WARMING PATTERN CALLED AN EL NINO A SHIFT OF WARM WATER CURRENTS IN THE PACIFIC THAT ALTERS WEATHER PATTERNS IN SPITE OF TWO CONSECUTIVE EL NINOS THE TEMPERATURE HAS DROPPED THAT REALLY SHOWS THIS SHADING IS HAVING AN EFFECT SAID DR CHRISTY AN ASSOCIATE PROFESSOR AT THE UNIVERSITY THE SHADING IS CAUSED BY SULFUR FROM VOLCANIC ERUPTIONS BONDING WITH WATER DROPLETS THE BOND FORMS SULFURIC ACID WHICH BLOCKS RADIATION FROM THE SUN THE SHADING AFFECTS SUMMERTIME CONDITIONS MORE DRASTICALLY BECAUSE THERE'S SIMPLY MORE SUNLIGHT TO SHADE SAID DR CHRISTY HE ADDED THAT THE RECENT SUMMERS IN BOTH HEMISPHERES HAVE BEEN THE COOLEST IN THE HISTORY OF THE STUDY AND THAT THE BELOWNORMAL TEMPERATURES SHOULD CONTINUE FOR THE NEXT COUPLE OF YEARS 9303080015 930308 INTERNATIONAL GERMAN RATE ON REPO IS CUT BY BUNDESBANK UNEXPECTED MOVE SUGGESTS MORE STEPS TO COMBAT A DEEPENING RECESSION BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE BUNDESBANK EASED MONETARY POLICY UNEXPECTEDLY FRIDAY BY CROPPING THE INTEREST RATE ON A KEY OPENMARKET FINANCING INSTRUMENT CAUTIOUSLY SIGNALING THAT OTHER CUTS MAY FOLLOW AS GERMANY'S RECESSION DEEPENS THE CENTRAL BANK CAUGHT MARKETS OFFGUARD BY ANNOUNCING A CUT IN THE INTEREST RATE ON 14DAY SECURITY REPURCHASE AGREEMENTS TO 825 FROM 849 THE REPO IS A KEY SHORTTERM REFINANCING INSTRUMENT FOR GERMAN BANKS AND IS THE BUNDESBANK'S FAVORED MEANS OF STEERING MONEY MARKET LIQUIDITY BUNDESBANK DIRECTORATE MEMBER JOHANN WILHELM GADDUM CALLED THE STEP AN INTERESTRATE SIGNAL BUT DECLINED TO SAY WHEN THE NEXT STEP MIGHT COME THE BUNDESBANK CENTRAL BANK COUNCIL WHICH MEETS EVERY TWO WEEKS WILL GATHER AGAIN MARCH 18 MANY FINANCIAL ANALYSTS BELIEVE THE NEXT CUTS WILL COME EITHER THEN OR APRIL 1 BUT MR GADDUM CAUTIONED AGAINST EXPECTING MAJOR RATE REDUCTIONS POINTING TO THE BUNDESBANK'S PAST POLICY OF MINOR RATE CUTS OF A HALF POINT IN SEPTEMBER AND A QUARTER POINT IN FEBRUARY WE HAVE FOLLOWED A POLICY OF SMALL STEPS SINCE LAST AUTUMN MR GADDUM SAID IN A GERMAN TELEVISION INTERVIEW THE REMARKS CONFLICT WITH HOPES FOR A DISCOUNTRATE REDUCTION OF AS MUCH AS A FULL PERCENTAGE POINT DEEMED BY ECONOMISTS AS THE MINIMUM NEEDED TO REVIVE GERMAN INVESTMENT ACTIVITY AND TO TAKE PRESSURE OFF OTHER NATIONS' CURRENCIES THE RATE CUT CAME AS GERMANY SAID JOBLESSNESS APPROACHED 35 MILLION PEOPLE IN FEBRUARY AT THE SAME TIME BONN ECONOMICS MINISTER CONCEDED THAT GERMANY'S RECOVERY MIGHT BE DELAYED UNTIL NEXT WINTER THE NUMBER OF UNEMPLOYED IN WESTERN GERMANY ROSE A SEASONALLY ADJUSTED 42000 IN FEBRUARY TO 2287941 RAISING THE JOBLESS RATE TO 84 OF THE WORK FORCE FROM 83 IN JANUARY MEANWHILE THE NUMBER OF PEOPLE WORKING SHORTENED SHIFTS JUMPED A STARTLING 21 IN WESTERN GERMANY JOBLESS TOTALS IN EASTERN GERMANY EASED SLIGHTLY TO 1180680 FROM 1194365 A MONTH EARLIER LOWERING THE REGION'S JOBLESS RATE TO 15 FROM 151 BONN OFFICIALS WORRY THAT GROWING JOBLESSNESS IS AGGRAVATING THE FALL IN CONSUMER CONFIDENCE THUS FEEDING THE RECESSION THE STATISTICS OFFICE SAID FRIDAY THAT WHOLESALE SALES IN WESTERN GERMANY FELL A REAL OR INFLATIONADJUSTED 12 IN JANUARY FROM A YEAR EARLIER ANALYSTS SAID THE DECLINE COULD HAVE BEEN BECAUSE OF ADVANCE PURCHASING AHEAD OF THE JANUARY INTRODUCTION OF A HIGHER VALUEADDED TAX ECONOMICS MINISTER GUENTER REXRODT NOW SAYS THE GERMAN ECONOMY WILL LIKELY BEGIN TO RECOVER IN LATE 1993 OR IN 1994 AT THE LATEST PREVIOUSLY THE GOVERNMENT LINE WAS THAT RECOVERY WOULD BEGIN IN THE SECOND HALF OF THIS YEAR THE GOVERNMENT CONTINUED TO BE MORE OPTIMISTIC THAN MANY PRIVATESECTOR ECONOMISTS HOWEVER THE TIMING ON THE REPO RATES WAS UNUSUAL COMING A DAY AFTER THE BUNDESBANK'S POLICY COUNCIL DISAPPOINTED FINANCIAL MARKETS BY ANNOUNCING NO CHANGES IN MONETARY POLICIES ANALYSTS SPECULATE THAT THE REPORATE CUT WAS ANNOUNCED EARLY TO EASE PRESSURE ON THE FRENCH FRANC AND A NEW CRISIS FOR THE EUROPEAN MONETARY SYSTEM OVER THE WEEKEND THE FRENCH FRANC WAS LOOKING PROBLEMATIC OVERNIGHT AND IT COULD BE A PREVENTIVE MOVE SAID ALISON COTTRELL INTERNATIONAL ECONOMIST FOR MIDLAND GLOBAL MARKETS RESEARCH IN LONDON WHEN PRESSURED BY BONN AND OUTSIDERS TO REDUCE HIGH GERMAN INTEREST RATES THE BUNDESBANK HAS RESISTED POINTING TO INFLATION OF MORE THAN 4 AND DEMANDING THE GOVERNMENT FIRST CONTAIN AN EXPLOSION IN PUBLICSECTOR DEFICITS SINCE GERMANY REUNIFIED IN 1990 9303080014 930308 CREDIT SUISSE PROFIT ROSE 11 IN '92 WEIGHED DOWN BY BIG RISK PROVISIONS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH CREDIT SUISSE'S PROFIT INCHED UP 11 IN 1992 WEIGHED DOWN BY HEAVY RISK PROVISIONS AND JOSEF ACKERMANN THE NEW PRESIDENT OF THE BANK'S EXECUTIVE BOARD SAID SUCH PROVISIONS WILL REMAIN SUBSTANTIAL THIS YEAR CREDIT SUISSE SAID AT A NEWS CONFERENCE ON FRIDAY THAT ITS NET PROFIT ROSE TO A RECORD 857 MILLION SWISS FRANCS 5636 MILLION LAST YEAR FROM 848 MILLION FRANCS IN 1991 HOWEVER ITS RESULTS WERE HURT BY AN UNEXPECTED SETASIDE FOR 15 BILLION FRANCS OF LOSSES WRITEDOWNS AND PROVISIONS UP 34 FROM THE PREVIOUS YEAR'S TOTAL OF 114 BILLION FRANCS UNDERLINING ITS CAUTIOUS APPROACH THE BANK THE BACKBONE OF THE CS HOLDING GROUP THAT ALSO CONTROLS INVESTMENT HOUSE CREDIT SUISSE FIRST BOSTON INC SAID ITS GROSS DIVIDEND PER BEARER AND PER REGISTERED SHARE WILL REMAIN UNCHANGED AT 23 FRANCS ALTHOUGH CREDIT SUISSE ISN'T LISTED ON THE STOCK EXCHANGE BEARER SHARES OF CS HOLDING WHICH IS LISTED IN ZURICH GAINED 42 LAST WEEK TO CLOSE FRIDAY AT 2230 FRANCS A SHARE CREDIT SUISSE'S SMALL INCREASE IN NET PROFIT CONTRASTED WITH A 14 JUMP IN CASH FLOW FOR LAST YEAR TO 284 BILLION FRANCS FROM 248 BILLION FRANCS IN 1991 AND MR ACKERMANN SUGGESTED SIMILAR CONDITIONS WILL PREVAIL IN 1993 WITH A POSITIVE OPERATING PERFORMANCE COMBINED WITH THE NEED FOR HIGH LOANLOSS PROVISIONS CASH FLOW SHOULD DEVELOP WELL THIS YEAR WE HAVE COSTS UNDER CONTROL SAID MR ACKERMANN HE SAID CREDIT SUISSE WILL BENEFIT FROM IMPROVED INTERESTRATE MARGINS STEADY EARNINGS FROM ASSET MANAGEMENT AND GOOD IF VOLATILE PROFITS FROM TRADING NEVERTHELESS MR ACKERMANN ADDED THERE ARE UNCERTAINTIES IN ECONOMIC DEVELOPMENTS IN SWITZERLAND AND GERMANY SURPRISES ARE POSSIBLE SWITZERLAND FELL UNEXPECTEDLY INTO A PROLONGED RECESSION IN 1991 AND ECONOMISTS DON'T EXPECT A SIGNIFICANT RECOVERY BEFORE 1994 GOVERNMENT STATISTICS PUBLISHED ON FRIDAY ESTIMATE THAT SWITZERLAND'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE NATION FELL 06 LAST YEAR CAUSING PARTICULAR CONCERN WAS AN ESTIMATED 13 DROP IN GDP IN THE FOURTH QUARTER THE WORST QUARTERLY RESULT SINCE THE RECESSION BEGAN A SLOWDOWN IN GERMANY SWITZERLAND'S MOST IMPORTANT TRADING PARTNER HAS ALSO HAMPERED SWISS EXPORTERS ANALYSTS SAY DESPITE THESE FACTORS FINANCIAL ANALYSTS EXPRESSED SOME SURPRISE AT THE GROWTH LAST YEAR IN CREDIT SUISSE'S LOANLOSS PROVISIONS HOWEVER THEY POINTED TO THE STATE OF THE SWISS ECONOMY THE BIG INCREASE IS OBVIOUSLY DUE TO THE SITUATION IN SWITZERLAND SAID GILBERT PUDER HEAD OF BANK SARASIN'S RESEARCH DEPARTMENT BEAT ALPIGER FINANCIAL ANALYST AT BANK JULIUS BAER SAID BY BUILDING UP RESERVES TO THIS EXTENT CREDIT SUISSE IS BEING CAUTIOUS ON A MORE UPBEAT NOTE HE PREDICTED THAT UNUSED PROVISIONS WILL BOOST CREDIT SUISSE'S PROFITS IN THE FUTURE ADDING TO THE CAUTION THAT NOW PREVAILS AMONG SWITZERLAND'S THREE BANKING GIANTS UNION BANK OF SWITZERLAND SWISS BANK CORP AND CREDIT SUISSE IS A CONTINUING CONSOLIDATION AMONG SMALLER BANKS UNABLE TO STAND UP TO TOUGHER COMPETITION AMID AN ECONOMIC DOWNTURN ANALYSTS SAY UNDER SWITZERLAND'S COMPLICATED UNWRITTEN SYSTEM OF FREE ENTERPRISE AND PRIVATE REGULATORY CONTROL THE SOCALLED BIG THREE ARE EXPECTED TO SAVE TROUBLED FINANCIAL INSTITUTIONS IF AT ALL POSSIBLE WE WANT AN ORDERLY RESTRUCTURING OF THE INDUSTRY SAID MR ACKERMANN IN 1992 CREDIT SUISSE RESCUED TWO REGIONAL BANKS EKO BANK AND GEWERBEBANK BADEN IN THE BIGGEST BANKING TAKEOVER IN SWITZERLAND SINCE WORLD WAR II CREDIT SUISSE ALSO IS CURRENTLY MERGING SWISS VOLKSBANK WITH ASSETS OF 46 BILLION FRANCS INTO ITS ORGANIZATION RAINER E GUT CHAIRMAN OF CREDIT SUISSE SAYS THE MERGER IS THE OPPORTUNITY OF THE CENTURY TO STRENGTHEN CREDIT SUISSE'S DOMESTIC OPERATIONS MR GUT SAID ANY PLAYER ON THE INTERNATIONAL FRONT IN THE BANKING INDUSTRY MUST HAVE A STRONG HOME BASE HOWEVER ON THE HOME FRONT THE MERGER IS A MAJOR CHALLENGE INVOLVING MASSIVE CUTS IN BRANCHES AND REORGANIZATION OF BUSINESS ACTIVITIES AIMED AT AN EXPECTED COMBINED SAVINGS OF AS MUCH AS 250 MILLION FRANCS AS A RESULT THERE WILL BE SIGNIFICANT RESTRUCTURING COSTS IN 1993 BUT MR ACKERMANN DIDN'T PREDICT THE SIZE OF THESE COSTS MR ACKERMANN IS TAKING OVER FROM ROBERT A JEKER WHO IS LEAVING CREDIT SUISSE AFTER 42 YEARS TO RUN THE BUSINESS INTERESTS OF SWISS BILLIONAIRE INDUSTRIALIST STEPHAN SCHMIDHEINY SPEAKING AT FRIDAY'S NEWS CONFERENCE MR JEKER DESCRIBED HIS FINAL YEAR AT CREDIT SUISSE AS THOROUGHLY SATISFACTORY GIVEN THE DIFFICULT ECONOMIC CLIMATE ALTHOUGH THE BANKING GROUP'S INCOME FROM ONBALANCESHEET BUSINESS REMAINED UNCHANGED AT 23 BILLION FRANCS IN 1992 COMMISSION INCOME GREW 13 TO 166 BILLION FRANCS FROM 147 BILLION FRANCS IN 1991 LAST YEAR'S TRADING INCOME GREW 26 TO 159 BILLION FRANCS FROM 126 BILLION FRANCS THE YEAR BEFORE OF THE TOTAL EARNINGS FROM FOREIGN EXCHANGE TRADING JUMPED 43 TO 672 MILLION FRANCS FROM 470 MILLION FRANCS EARNINGS FROM SECURITIES TRADING SURGED 64 TO 440 MILLION FRANCS FROM 268 MILLION FRANCS THE TREND TOWARD AN INCREASING SHARE OF EARNINGS AT THE BIG THREE BANKS COMING FROM ABROAD CONTINUED AT CREDIT SUISSE LAST YEAR MR JEKER SAID FOREIGN OPERATIONS GENERATED 35 OF TOTAL INCOME COMPARED WITH 34 IN 1991 IN 1992 TOTAL ASSETS INCREASED BY 11 TO 173 BILLION FRANCS FROM 1556 BILLION FRANCS THE PREVIOUS YEAR MEANWHILE CUSTOMER DEPOSITS ROSE 8 TO 1138 BILLION FRANCS FROM 1052 BILLION FRANCS AND CUSTOMER LOANS GAINED 4 TO 999 BILLION FRANCS FROM 958 BILLION FRANCS 9303080013 930308 LEISURE & ARTS ON SPORTS POUNDFORPOUND THE BEST BY FREDERICK C KLEIN NEW YORK THE FIGHT WAS OVER AND THE WINNER PERNELL SWEETPEA WHITAKER WAS THANKING ALL THE WONDERFUL PEOPLE WHO MADE HIS VICTORY POSSIBLE HE THANKED HIS MANAGER AND HIS TRAINER AND HIS SPARRING PARTNERS AND JAMES BUDDY MCGIRT HIS OPPONENT AND THE FOLKS AT MADISON SQUARE GARDEN AND HBO BUT MOSTLY HE SAID I WANT TO THANK MYSELF FOR A WONDERFUL PERFORMANCE THE BEST FIGHTER FOUGHT THE BEST AND THE BEST WON THAT'S THE WAY IT'S SUPPOSED TO BE ISN'T IT HE WENT ON I HOPE THE PEOPLE APPRECIATE SEEING TWO FIGHTERS USING THEIR SKILLS NOT JUST STANDING THERE HITTING ONE ANOTHER ON THE HEAD THAT'S THE WAY IT'S SUPPOSED TO BE TOO YES IT IS BUT THIS IS AN IMPERFECT WORLD AND THINGS DON'T ALWAYS WORK THE WAY THEY'RE SUPPOSED TO AND SO WHEN THE AGILE WHITAKER AN ERSTWHILE LIGHTWEIGHT AND JUNIORWELTERWEIGHT CHAMPION WHO IS WORKING HIS WAY UP THE WEIGHT LADDER FOUGHT THE RUGGED MCGIRT A WELTERWEIGHT CHAMP JUST 10814 PEOPLE PAID THEIR WAY INTO THE GARDEN TO WATCH ON SATURDAY NIGHT AGAINST SOME 16000 WHO WERE PRESENT IN THE SAME BUILDING A MONTH BEFORE FOR THE PATENT MISMATCH BETWEEN RIDDICK BOWE THE NEW HEAVYWEIGHT CHAMP AND AN OVERAGE OVERWEIGHT MICHAEL DOKES THAT ONE DIDN'T LAST A ROUND BOWE DISPATCHING DOKES IN TWO MINUTES AND CHANGE SATURDAY'S WENT ALL 12 WHICH MEANT THAT AT LEAST THE CROWD GOT MORE FOR ITS MONEY WHITAKER WON A UNANIMOUS DECISION AND WHILE BOXING'S SANDY KOUFAX DIDN'T PITCH OR APPROACH HIS USUAL ROUNDBYROUND SHUTOUT HIS SUPERIORITY WAS CLEAR TO EVERYONE BUT SOME LONG ISLANDERS IN ATTENDANCE TO CHEER HOMEBOY BUDDY AND JUDGE RUDY ORTEGA THE LATTER SCORED THE BOUT 115114 WHICH WORKS OUT TO SIX ROUNDS TO FIVE WITH ONE EVEN JUDGE CHUCK GIAMPA SAW THINGS A BIT BETTER 115113 OR SEVEN ROUNDS TO FIVE AND JUDGE DALBY SHIRLEY SAW IT BEST OF ALL 117111 OR NINE TO THREE WHITAKER'S EDGE WOULD HAVE BEEN GREATER STILL IF HIS EFFORT HADN'T SLACKED OFF NOTICEABLY IN THE LAST TWO ROUNDS AND LOST HIM BOTH ON ALL THREE JUDGES' CARDS HE ENLIVENED THE LAST ROUND HOWEVER BY PLAYING PITTYPAT ATOP MCGIRT'S SHAVEN DOME DUCKING VOLLEYS OF HIS FOE'S PUNCHES WHILE STANDING STILL AND A COUPLE OF TIMES LEAPING UPON THE ROPES TO THROW WHAT COULD ONLY BE CALLED JUMP HOOKS THAT STUFF CAME UNDER THE HEADING OF ENTERTAINMENT HE SAID LATER AND IS VINTAGE WHITAKER THE FIGHT WAS VINTAGE WHITAKER IN ANOTHER WAY WHICH IS TO SAY THAT HE PUNCHED THE OTHER FELLOW A LOT WITHOUT BEING PUNCHED MUCH IN RETURN PREFIGHT SPECULATION HAD HIM USING HIS SUPERIOR SPEED TO FLEE FROM THE POTENT MCGIRT WHOSE 59 WINS AGAINST NOW THREE LOSSES AND A DRAW INCLUDE 44 BY KNOCKOUT BUT INSTEAD THE LEFTHANDED WHITAKER MOSTLY MOVED FORWARD TO SMOTHER HIS OPPONENT'S POWER SNAPPED HIS RIGHT JABS OVER MCGIRT'S LEFTS AND FLURRIED EFFECTIVELY WITH BOTH HANDS ALMOST ALL THE TRULY SOLID PUNCHES THAT LANDED WERE HIS THE COMPUTER THAT QUANTIFIES THIS FACTOR REPORTED THAT WHITAKER'S PUNCHESLANDED EDGE CAME TO 314 TO 238 BUT ALL BUT A FEW OF THE 238 HE RECEIVED LOOKED TO HAVE LANDED UPON HIS ARMS SHOULDERS OR BACK WHILE MOST OF 314 HE DELIVERED APPEARED TO FIND MORE VULNERABLE SPOTS SUFFICE IT TO SAY THAT WHITAKER APPEARED PERKY AT THE POSTFIGHT PRESS CONFERENCE WHILE MCGIRT WAS REPRESENTED BY HIS MANAGER AL CERTO MCGIRT HAS HAD A HISTORY OF LEFT ARM AND SHOULDER ILLS AND CERTO SAID THAT WHILE HE DIDN'T WANT IT TO SOUND LIKE HE WAS MAKING AN EXCUSE THE MEMBER WENT OUT ON THE FIGHTER IN THE FOURTH ROUND ON SATURDAY AND HAMPERED HIM THEREAFTER SOMEHOW IT DID SOUND LIKE AN EXCUSE IN ANY CASE IT WAS A SIGNAL TRIUMPH FOR THE 29YEAROLD NATIVE OF NORFOLK VA BECAUSE IT MARKED HIS THIRD PROFESSIONAL WEIGHTDIVISION CROWN NO SMALL ACHIEVEMENT EVEN IN THESE DAYS OF FRACTIONAL WEIGHT CLASSES AND A LUDICROUS MULTIPLICITY OF SANCTIONING BODIES WHEN YOU ADD IN HIS L984 OLYMPIC GOLD MEDAL AND 1983 WORLD AMATEUR CHAMPIONSHIP BOTH AT 132 POUNDS AND NOTE THAT THE ONLY DEFEAT IN HIS 33FIGHT PRO CAREER WAS A BLATANT MISCARRIAGE OF JUSTICE HE LOST A VERY BAD 1988 DECISION TO JOSE LUIS RAMIREZ IN RAMIREZ'S ADOPTED HOME CITY OF PARIS FRANCE BUT BEAT RAMIREZ EASILY IN THE REMATCH AND YOU HAVE A LEGITIMATE CLAIMANT TO THE MYTHICAL TITLE OF BEST FIGHTER AROUND POUNDFORPOUND AND IN FACT AFTER THE FIGHT A BOXING MAGAZINE AWARDED HIM A TROPHY NAMING HIM THAT VERY THING THE OTHER MAIN CLAIMANT TO THE POUNDFORPOUND CROWN IS THE IRONFISTED MEXICAN JUNIORWELTERWEIGHT JULIO CESAR CHAVEZ AND DON KING CHAVEZ'S MANAGER PROMOTER AND WHATNOT WAS ON HAND TO ANNOUNCE AND WHITAKER'S HANDLERS CONFIRMED THAT HE HAD A SIGNED AND SEALED CONTRACT FOR WHITAKER AND CHAVEZ TO MEET IN SEPTEMBER FOR A BOUT THAT WAS SIGNED AND SEALED THIS ONE SEEMED TO HAVE QUITE A FEW LOOSE ENDS SUCH AS THE DATE THE WEIGHT AT WHICH THE TWO WOULD FIGHT IT'LL BE EITHER 140 POUNDS THE JUNIORWELTERWEIGHT LIMIT OR THE 147POUND WELTERWEIGHT MAXIMUM THE PURSE SIZE AND DISTRIBUTION AND THE PLACE LOU DUVA WHITAKER'S MANAGER SAID HE THOUGHT LAS VEGAS WOULD BE THE SITE KING SAID HE THOUGHT SAN ANTONIO TEXAS WOULD BE NICE DECLARED THE ELECTRICHAIRED ONE IT'LL BE ALAMO II THE US VERSUS MEXICO IN THE SPIRIT OF JIM BOWIE DAVY CROCKETT AND GENERAL SANTA ANNA HE ADDED YOU ALL REMEMBER WHO WON THAT ONE DON'T YOU BUT IF WHITAKER REMEMBERED HIS HISTORY LESSONS HE WASN'T LETTING ON I'M HAPPY TO BE FIGHTING CHAVEZ IT SHOULD HAVE HAPPENED TWO YEARS AGO BUT WE COULDN'T MAKE THE MATCH BUT EITHER THEN OR NOW IT'D COME OUT THE SAME WAY WITH ME ON TOP I'LL GIVE CHAVEZ THE SAME TREATMENT I GAVE BUDDY MCGIRT I WAS TOO QUICK FOR MCGIRT AND I'LL BE TOO QUICK FOR HIM DON'T BET AGAINST IT 9303080011 930308 MEXICO TO ANNOUNCE PRIVATIZATION TERMS FOR INSURER ASEMEX SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY MEXICO WILL WITHIN A MONTH ANNOUNCE TERMS FOR THE PRIVATIZATION OF STATE INSURANCE COMPANY ASEGURADORA MEXICANA SA TREASURY UNDERSECRETARY GUILLERMO ORTIZ SAID ASEMEX AS THE COMPANY IS KNOWN IS ONE OF MEXICO'S LARGEST INSURANCE UNDERWRITERS THE GOVERNMENT TRIED TO PRIVATIZE ASEMEX IN 1991 BUT FOUND LITTLE INTEREST AND WAS EVENTUALLY FORCED TO PULL THE OFFERING BY GOVERNMENT ORDER STATE COMPANIES ARE REQUIRED TO INSURE WITH ASEMEX BUT AS MORE OF THOSE COMPANIES BECAME PRIVATIZED UNDER PRESIDENT CARLOS SALINAS DE GORTARI GOVERNMENT BUSINESS DROPPED FROM 95 OF ALL ASEMEX'S BUSINESS TO AROUND 60 AT PRESENT ASEMEX IS ALSO SEEN AS BLOATED WITH PERSONNEL AND BURDENED BY OUTDATED INFRASTRUCTURE AT THE TIME OF THE FIRST ATTEMPT AT PRIVATIZATION THOSE RUMORED TO HAVE AN INTEREST IN THE BUSINESS INCLUDED BANCO NACIONAL DE MEXICO SA THE NATION'S LARGEST BANK BROKERAGE HOUSE MEXIVAL SA AND GERARDO DE PREVOISIN CHAIRMAN OF AEROVIAS DE MEXICO SA THE COUNTRY'S LARGEST AIRLINE IN A SEPARATE ANNOUNCEMENT THE GOVERNMENT SAID IT IS HOPING TO EARN 600 MILLION FROM THE PRIVATIZATION OF A PACKAGE OF STATEOWNED MEDIA COMPANIES INCLUDING TWO NATIONAL TELEVISION NETWORKS ANALYSTS HAVE PUT THE VALUE OF THE COMPANIES AT CLOSER TO 500 MILLION INTERESTED PARTIES WILL HAVE UNTIL APRIL 1 TO MAKE THEIR BIDS FOR THE PACKAGE WHICH CONTAINS TELEVISION CHANNELS 7 AND 13 EL NACIONAL NEWSPAPER A MOVIETHEATER CHAIN AND A MOVIE PRODUCTION COMPANY FOREIGNERS AREN'T ALLOWED TO BID FOR THE COMPANIES EXCEPT AS MINORITY PARTNERS IN A MEXICANLED GROUP 9303080010 930308 ACCEPTANCE INSURANCE EXPECTS TO REPORT FOURTHPERIOD PROFIT OMAHA NEB ACCEPTANCE INSURANCE COS AFTER A YEAR OF RESTRUCTURING AND ASSET SALES EXPECTS IN MIDMARCH TO POST A FOURTHQUARTER PROFIT OF ABOUT 750000 OR ABOUT 23 CENTS A SHARE THE SPECIALTY PROPERTY AND CASUALTY INSURER WAS FORMERLY A UNIT OF STONERIDGE RESOURCES INC AN INVESTMENT COMPANY WHOSE HOLDINGS INCLUDED REAL ESTATE AND CITRUS OPERATIONS ACCEPTANCE EXPECTS REVENUE FOR THE QUARTER OF 244 MILLION SAID CHIEF EXECUTIVE OFFICER KENNETH C COON THE EXPECTED RESULTS COMPARE WITH A YEARAGO LOSS OF 383 MILLION OR 1124 A SHARE RESTATED FOR A REVERSE 4FOR1 STOCK SPLIT IN DECEMBER THE LOSS INCLUDED A CHARGE OF 349 MILLION OR 998 A SHARE RELATED TO WRITING DOWN ASSETS IN STONERIDGE'S REAL ESTATE AND CITRUS OPERATIONS WITHOUT THE CHARGE THE COMPANY WOULD HAVE HAD A NET LOSS OF ROUGHLY 35 MILLION OR 1 A SHARE REVENUE WAS 244 MILLION THE COMPANY HAS TURNED PROFITABLE BY PEELING AWAY LAYERS OF EXPENSES AND LOSSES AT THE PARENT LEVEL AND EXPOSING THE PROFITABLE INSURANCE OPERATIONS MR COON SAID IN AN INTERVIEW A DECISION WAS MADE IN FEBRUARY 1992 WHEN MR COON BECAME CHIEF EXECUTIVE TO SELL STONERIDGE'S ASSETS EXCEPT FOR ITS INSURANCE OPERATIONS AND THE COMPANY'S NAME WAS CHANGED TO ACCEPTANCE LATE LAST YEAR FOR THE FULL YEAR MR COON SAID ACCEPTANCE EXPECTS TO POST A LOSS OF ABOUT 900000 OR 26 CENTS A SHARE A YEAR AGO THE COMPANY HAD A LOSS OF 429 MILLION OR 1260 A SHARE INCLUDING THE 349 MILLION OR 998 A SHARE CHARGE BUT OPERATING PROFIT FOR THE INSURANCE OPERATIONS FELL TO 49 MILLION FROM 73 MILLION BECAUSE OF THE LATEST YEAR CHARGES THE COMPANY EXPECTS THAT REVENUE IN THE LATEST YEAR ROSE TO 95 MILLION FROM 807 MILLION 9303080009 930308 CREDIT MARKETS BOND MARKET DISPLAYS SIGNS OF RESILIENCE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BIG BOND RALLY MAY STILL HAVE SOME ENERGY IN IT SAY MANY ECONOMISTS AND MONEY MANAGERS WHO POINT TO FRIDAY'S BOND MARKET RESILIENCE AS PROOF BOND PRICES PLUNGED IN THE HOURS AFTER THE LABOR DEPARTMENT REPORTED A JUMP OF 365000 IN FEBRUARY NONFARM PAYROLLS MORE THAN TWICE WHAT ECONOMISTS HAD EXPECTED THE JUMP SPARKED WORRIES THAT THE ECONOMY WAS PICKING UP SPEED AND FUELING INFLATION WHICH REDUCES THE VALUE OF FIXEDINCOME INVESTMENTS THE PRICE OF THE 30YEAR TREASURY BOND INITIALLY PLUNGED MORE THAN 1 1/4 POINTS OR 1250 FOR A BOND WITH A 1000 FACE VALUE BUT BY THE END OF THE DAY THE BOND SETTLED WITH A LOSS OF LESS THAN 1/8 POINT OR 125 THE YIELD ENDED AT 674 UP FROM 673 THURSDAY TO BE SURE SHORTERTERM DEBT WAS HARDER HIT THE FIVEYEAR TREASURY NOTE FOR EXAMPLE ENDED THE DAY WITH A LOSS OF MORE THAN 3/8 POINT WHILE ITS YIELD ROSE TO 51 FROM 5 ECONOMISTS SAY THIS HAPPENED BECAUSE INVESTORS BECAME CONVINCED THAT THE FEDERAL RESERVE WAS UNLIKELY TO CUT SHORTTERM RATES AGAIN IN THE WAKE OF SUCH A STRONG ECONOMIC REPORT MANY ECONOMISTS SAY A 65 YIELD ON THE BENCHMARK 30YEAR TREASURY BOND IS STILL A POSSIBILITY BUT THEY WARN THAT THE TRIP DOWN IN YIELDS WON'T BE NEARLY AS SMOOTH OR SPEEDY AS IT HAS BEEN OVER THE PAST FEW WEEKS THE TREND IN YIELDS IS STILL DOWNWARD SAYS LACY H HUNT CHIEF US ECONOMIST AT HSBC HOLDINGS PARENT OF MARINE MIDLAND BANK I THINK THE TROUGH WILL BE SOMETIME BEFORE THE SUMMER BUT I DON'T THINK WE'RE AT THE TROUGH BY ANY MEANS ACCORDING TO MR HUNT THERE COULD BE SOME PLEASANT SURPRISES IN COMING WEEKS HIGHER BOND PRICES INEVITABLY MEAN LOWER YIELDS AND HE SAYS THAT A 30YEAR TREASURY YIELD OF 625 TO 65 IS A REASONABLE OBJECTIVE BUT ALAN LERNER A MANAGING DIRECTOR IN GLOBAL MARKET ECONOMICS AT BANKERS TRUST CO SAYS INVESTORS MAY BE UNNERVED ENOUGH BY THE FEBRUARY EMPLOYMENT REPORT TO APPROACH THE NEXT MONTH WITH RENEWED CAUTION HE SAYS THE REPORT MAY BE A WARNING SHOT HINTING AT STRONGER JOB GROWTH DOWN THE LINE THOUGH HE ISN'T CERTAIN OF THIS YET I THINK WE'RE GOING TO BE IN A RANGE OF 65 TO 69 FOR 30YEAR TREASURYS UNTIL WE SEE CONCLUSIVE EVIDENCE THAT THE ECONOMY IS IN A SUSTAINED PATTERN OF STRONG GROWTH HE SAYS FRIDAY'S REBOUND IN LONGTERM BONDS IS SIGNIFICANT SAY MANY ECONOMISTS BECAUSE IT SHOWS HOW MUCH STRENGTH REMAINS IN THE BOND MARKET IT ALSO SUGGESTS INVESTORS HAVE BECOME MORE WILLING TO BELIEVE THAT LOWER INFLATION IS HERE TO STAY EVEN AS SOME REPORTS SUGGEST THAT THE ECONOMY MAY BE GAINING STRENGTH OTHER FACTORS ARE DRIVING THE MARKET NOTABLY A SHORTAGE OF SUPPLY JUST AS DEMAND IS PICKING UP FOR TREASURY DEBT AND A BELIEF THAT PRESIDENT CLINTON'S ECONOMIC PACKAGE COULD HAMPER THE ECONOMY MORE THAN HELP IT IT'S POSSIBLE TO GO TO 65 YIELDS ON THE 30YEAR TREASURY BONDS SAYS DAVID MACEWEN A MUNICIPAL PORTFOLIO MANAGER WITH BENHAM GROUP OF MOUNTAIN VIEW CALIF BECAUSE IN THE LONG TERM INFLATION IS WHAT'S REALLY GOING TO DRIVE BOND YIELDS AND THERE IS NO THREAT OF HIGHER INFLATION RIGHT NOW MR MACEWEN SAYS HE HAS BEEN BUYING MUNICIPAL BONDS WITH LONGER MATURITIES TO TAKE ADVANTAGE OF DROPPING RATES WITHOUT A VERY BENIGN INFLATIONARY ENVIRONMENT SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THIS WOULDN'T BE TAKING PLACE ACCORDING TO MR FINE THE MARKET HAS BEEN MOVING AHEAD BECAUSE INVESTORS BELIEVE INFLATION IS VERY SUBDUED AND NONTHREATENING MR FINE SAYS THAT THE BEST THING YOU CAN SAY IS THAT INFLATION WILL REMAIN WHERE IT IS BUT IN FACT IT COULD PICK UP A BIT ACCORDING TO MR FINE MARCH 17 COULD BE A BIG SHAKEUP DAY WHEN THE FEBRUARY CONSUMER PRICE INDEX IS RELEASED IF THE INDEX A MEASURE OF INFLATIONARY PRESSURE SHOWS A GAIN AS STRONG AS IT DID FOR JANUARY WHEN IT ROSE 05 IT MIGHT MAKE PEOPLE RETHINK THEIR INFLATIONARY EXPECTATIONS AND PUSH YIELDS BACK UP AGAIN HE SAYS FURTHER SHARP DROPS IN BOND YIELDS MAY DEPEND ON HOW PRESIDENT CLINTON'S ECONOMIC PACKAGE SURVIVES DEBATE IN CONGRESS SAYS MR MACEWEN THE BOND MARKET IS CERTAINLY LOOKING FOR THE CLINTON ADMINISTRATION TO MAKE SOME PROGRESS ON THE DEFICIT AND HAS BUILT IN SOME HOPES AT THIS POINT HE SAYS IF MR CLINTON IS ABLE TO GET SOMETHING THROUGH CONGRESS IT COULD MEAN EVEN LOWER RATES THE LATEST GAIN IS VERY UNCONVINCING SAID MR HUNT OF HSBC HOLDINGS WHO BELIEVES THAT SHARP INCREASES IN PARTTIME EMPLOYMENT AND SELFEMPLOYMENT FOR THE MONTH SUGGEST THAT SIGNIFICANT JOB GROWTH IS NOT HAPPENING YET ACCORDING TO MR HUNT ANOTHER BIG FACTOR THAT SHOULD HELP FUEL THE BOND RALLY FURTHER IS A SHARP REDUCTION IN THE GOVERNMENT'S BORROWING NEEDS IN THE SECOND QUARTER A REDUCTION IN BORROWING MEANS A SMALLER SUPPLY OF DEBT SECURITIES THIS COULD BOOST THE PRICE OF NOTES AND BONDS ALREADY IN THE MARKET EVEN IF DEMAND WANES SLIGHTLY THE GOVERNMENT HAS A MUCH SMALLER FINANCING NEED IN THE SECOND QUARTER SAYS LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC A TREASURY ANALYSIS FIRM MR CRANDALL ESTIMATES THE GOVERNMENT WILL NEED TO BORROW LESS THAN 10 BILLION IN NEW MONEY IN THE SECOND QUARTER COMPARED WITH 53 BILLION DURING THE SAME PERIOD LAST YEAR AND THE REDUCED BORROWING WILL COME AT A TIME WHEN THE GOVERNMENT IS CONSIDERING REDUCING ITS SALES OF LONGTERM SECURITIES WHILE PLACING MORE EMPHASIS ON SHORTERTERM DEBT ONE BIG OBSTACLE TO THE RALLY AND TO LOWER INFLATIONARY EXPECTATIONS IS THE HEALTHCARE PACKAGE BEING ASSEMBLED BY HILLARY RODHAM CLINTON SAYS MR CHAN THE SOCALLED INFLATION PREMIUM WHICH ECONOMISTS SAY HAS KEPT LONGTERM YIELDS AS MUCH AS ONE PERCENTAGE POINT HIGHER THAN WHERE THEY WOULD BE IF INFLATIONARY FEARS WEREN'T SO STRONG IS UNLIKELY TO SHRINK SAYS MR CHAN WE NEED TO SEE MORE EVIDENCE THAT THE CLINTON ADMINISTRATION IS SERIOUS ABOUT CONTROLLING GOVERNMENT SPENDING MR CHAN SAYS THAT THE ASYETUNFORMULATED HEALTHCARE PACKAGE COULD WIDEN THE FEDERAL BUDGET GAP STOKING INFLATION BOND MARKETS FELL AND THEN ROSE WITH THE TREASURY MARKET FRIDAY AS INVESTORS REACTED TO UNEXPECTED STRENGTH IN THE FEBRUARY JOBS REPORT WITH THE EXCEPTION OF THE MUNICIPAL MARKET MOST MAJOR BOND MARKETS MANAGED TO RECOUP A LARGE PART OF THEIR LOSSES BY DAY'S END MANY MORTGAGEBACKED SECURITIES ENDED THE DAY SLIGHTLY LOWER WITH 7 COUPON SECURITIES FOR MARCH DELIVERY DOWN 1/4 POINT CORPORATE BONDS ENDED WITH MODEST LOSSES WITH MOST HIGHGRADE ISSUES ENDING LITTLE CHANGED TO 3/8 POINT LOWER WHILE MOST JUNK BONDS WERE LITTLE AFFECTED BY THE STRONG JOBS DATA MANY MUNICIPAL BONDS FAILED TO RECOVER AFTER THEIR EARLY FALL AND FINISHED FRIDAY'S DEALINGS WITH LOSSES OF 3/8 POINT TO 3/4 POINT THE MUNICIPAL MARKET'S WEAKNESS IS EXPECTED TO BE SHORTLIVED HOWEVER AND MARKET PARTICIPANTS ARE ALREADY LOOKING AHEAD TO THE PRICING OF MORE THAN 3 BILLION OF SECURITIES THIS WEEK 9303080008 930308 WHO'S NEWS MOTOROLA INC MOTOROLA INC SCHAUMBURG ILL THE BOARD PROMOTED JAMES A NORLING PRESIDENT OF MOTOROLA'S SEMICONDUCTOR OPERATIONS TO PRESIDENT OF THE WIRELESS COMMUNICATIONS COMPANY'S OPERATIONS IN EUROPE THE MIDDLE EAST AND AFRICA MR NORLING 51 YEARS OLD SUCCEEDS DAVID N BARTRAM 56 WHO IS RETIRING JUNE 30 THOMAS D GEORGE 53 CURRENTLY EXECUTIVE VICE PRESIDENT OF THE SEMICONDUCTOR PRODUCTS SECTOR WILL SUCCEED MR NORLING AS PRESIDENT OF THE OPERATION MURRAY A GOLDMAN 55 GENERAL MANAGER OF THE SECTOR'S MICROPROCESSOR AND MEMORY TECHNOLOGIES GROUP WILL SUCCEED MR GEORGE 9303080007 930308 WHO'S NEWS SEAGRAM CO SEAGRAM CO MONTREAL KEVIN SMITH 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER FOR CANADIAN OPERATIONS AT THIS LIQUOR AND BEVERAGE COMPANY'S SEAGRAM SPIRITS AND WINE GROUP UNIT MR SMITH RECENTLY SERVED AS VICE PRESIDENT AND REGIONAL MANAGER OF THE CENTRAL REGION FOR THE HOUSE OF SEAGRAM DIVISION OF THE SPRITS AND WINE GROUP HE WILL SUCCEED GEORGE MCCARTHY 56 WHO WILL BECOME PRESIDENT OF NORTH AMERICAN OPERATIONS FOR HIRAM WALKER THE SPIRITS AND WINE UNIT OF ALLIEDLYONS PLC OF LONDON 9303080006 930308 HEARD ON THE STREET CLEARLY CANADIAN'S CREDIBILITY WOES MAY BE WHY BEVERAGE STOCK IS NO LONGER SPARKLING BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ITS NAME CLEARLY CANADIAN BEVERAGE HAS A WAY OF MUDDYING THINGS UP WHEN IT DISCLOSES INFORMATION ABOUT ITSELF PERHAPS THIS EXPLAINS WHY THE STOCK OF THE VANCOUVER MAKER OF FLAVORED SPARKLING WATER ONCE A FAVORITE OF SMALL INVESTORS SHOWS NO SIGNS OF BREAKING OUT OF ITS YEARLONG SLIDE WHY SOME INVESTORS ARE WONDERING DIDN'T CLEARLY CANADIAN BREAK OUT FOURTHQUARTER RESULTS SEPARATELY WHEN IT RELEASED FULLYEAR EARNINGS LAST MONTH COULD IT BE BECAUSE THE COMPANY WAS TRYING TO DIVERT ATTENTION FROM DISAPPOINTING SALES AND A 99 MILLION QUARTERLY NET LOSS AFTER A STRONG NINE MONTHS BEFORE THAT THE FOLKS AT CLEARLY CANADIAN SAY ACCOUNTANTS MADE THEM DO IT THERE WERE TOO MANY THINGS THAT JUST DISTORTED THE QUARTER TO A POINT THAT IT WAS JUST A MEANINGLESS NUMBER SAYS STUART ROSS VICE PRESIDENT OF ADMINISTRATION WE WEREN'T TRYING TO HIDE ANYTHING MANY CANADIAN COMPANIES REPORT ONLY FULLYEAR RESULTS BUT CLEARLY CANADIAN DID BREAK OUT THE FOURTH QUARTER A YEAR EARLIER OKAY SO HOW'S THIS FOR AN EXPLANATION IN 20 WORDS OR LESS THE INDICATED FOURTHQUARTER LOSS WAS CAUSED BY A ONETIME 112 MILLION CHARGE TAKEN TO BUY OUT A DISTRIBUTOR'S LICENSING AGREEMENT SOUNDS SIMPLE ENOUGH THE COMPANY DID DISCLOSE THE CHARGE IN REPORTING FOR THE YEAR BUT AS FOR THE QUARTER WE JUST DIDN'T SEE A WAY OF EXPLAINING IT MEANINGFULLY IN ANY SENSE ANYWAY THE COMPANY ADDS INVESTORS COULD JUST DO THE MATH THEMSELVES SUBTRACTING ITS PREVIOUSLY REPORTED NINEMONTH EARNINGS FROM THE FULLYEAR TALLY TO ARRIVE AT THE LATEST QUARTER ALL RIGHT THEN WHY DID CLEARLY CANADIAN'S CHIEF OPERATING OFFICER GLEN FOREMAN AT MABON SECURITIES' DEC 2 RESEARCH CONFERENCE IN NEW YORK INDICATE THAT FOURTHQUARTER SALES MIGHT BE 30 MILLION OR MORE A FEW WEEKS LATER INVESTORS WOULD SCRUTINIZE THE FOURTHQUARTER RESULTS DOING THE MATH THEMSELVES AND FIND SALES OF ONLY 15 MILLION THESE INVESTORS HAVING READ A REPORT OF THE OFFICIAL'S ESTIMATE IN BARRON'S MAGAZINE A SISTER PUBLICATION OF THE WALL STREET JOURNAL SAY THEY WERE PEEVED AT CLEARLY CANADIAN WHEN THEY FINALLY LEARNED THE REAL NUMBER MR FOREMAN BLAMES THE BAD CALL ON THE FACT THAT WE WERE STILL GOING THROUGH AN INVENTORY CORRECTION WHICH HAS PERSISTED THROUGH JANUARYFEBRUARY MOREOVER ANALYSTS SAY THAT AFTER THEY HAD BEEN LED TO BELIEVE THE COMPANY WOULD SELL 30 MILLION CASES OF ITS FLAVORED WATER IN THE FULL YEAR CLEARLY CANADIAN WOUND UP SELLING ONLY 23 MILLION CASES AMONG OTHER THINGS IT BLAMED MOTHER NATURE FOR KEEPING THE SUMMER TOO COOL SUCH EYEBROWRAISERS ARE WHY MOST ANALYSTS WARN SMALL INVESTORS AWAY FROM THIS NASDAQTRADED STOCK THERE'S BEEN A VARIETY OF CREDIBILITY PROBLEMS WITH CLEARLY CANADIAN NONE OF THEM LARGE IN MAGNITUDE SAYS ANALYST KEVIN SILVERMAN OF KEMPER SECURITIES IN CHICAGO THIS WAS A SMALL ENTREPRENEURIAL COMPANY THAT HAS GOTTEN LARGER THAN THEY EVER DREAMED I'M NOT SURE MANAGEMENT HAS MADE THE SAME LEAP AS HAS THE PRODUCT IN TERMS OF SUCCESS SO WHILE CLEARLY CANADIAN IS A KEMPER INVESTMENTBANKING CLIENT MR SILVERMAN RATES THE STOCK SPECULATIVE CLEARLY CANADIAN WILL HAVE TO PROVE THEIR STAYING POWER BEFORE ANYONE WILL GET EXCITED ABOUT THEM AGAIN ADDS MICHAEL BRANCA OF NATWEST SECURITIES IN NEW YORK TO BE SURE CLEARLY CANADIAN STOCK IS CHEAPER THAN ANOTHER TRENDY NASDAQTRADED BEVERAGE ISSUE SNAPPLE BEVERAGE WHICH HAS NEARLY DOUBLED FROM ITS DECEMBER INITIAL OFFERING TO FRIDAY'S 38 1/4 SNAPPLE TRADES AT A GRANDIOSE 81 TIMES 1992 PRO FORMA EARNINGS CLEARLY CANADIAN TRADES AT A LOWER MULTIPLE OF ROUGHLY 50 TIMES 1992'S CHARGE DEPRESSED EARNINGS BUT MORE IMPORTANT AT ONLY 95 TIMES THIS YEAR'S ESTIMATED PROFIT OF 1 A SHARE ITS PRODUCT COMES IN SEVEN GOODTASTING FLAVORS SUCH AS ORCHARD PEACH MOUNTAIN BLACKBERRY AND NEW SUMMER STRAWBERRY IT IS EXPANDING DISTRIBUTION IN EUROPE EVEN THE INTRUSION OF BIG COMPETITORS SUCH AS COCACOLA'S NORDIC MIST AND OTHER COLORFREE DRINKS SUCH AS PEPSICO'S CRYSTAL PEPSI MIGHT NOT HURT BUT RATHER LURE MORE CONSUMERS TO EXOTIC WATERS LIKE CLEARLY CANADIAN IN A HEALTHCONSCIOUS WORLD HOWEVER CLEARLY CANADIAN HAS JUST AS MUCH SUGAR AND CALORIES AS MANY OTHER SOFT DRINKS AND NEW SOFTDRINK FADS REGULARLY CROP UP TO THREATEN THE OLD ONES CLEARLY CANADIAN'S CHIEF EXECUTIVE OFFICER DOUGLAS MASON ONCE RAN JOLT BEVERAGE A ONETIME HIGHFLIER THAT COMPANY A FORMER CANADIAN DISTRIBUTOR OF CAFFEINERICH JOLT COLA HAD ONLY A BRIEF MOMENT IN THE SUN YEAR ENDED DEC 31 1992 FOURTH QUARTER DEC 31 1992 SHARE AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9303080005 930308 TECHNOLOGY INFORMATION AGE POLICE TURN TO DATABASES TO LINK CRIMES BY WILLIAM M BULKELEY IN CALIFORNIA A POLICEMAN BUSTING A CRACK HOUSE WAS KILLED WHEN HE WAS SURPRISED BY SHOOTING FROM A HOUSE NEXT DOOR WHICH TURNED OUT TO BE UNDER SURVEILLANCE BY OTHER INVESTIGATORS IN PITTSBURGH RESIDENTS COMPLAINED ABOUT DRUG DEALING FOR MONTHS BEFORE THE POLICE CONCLUDED THAT A DEALER HAD ACTUALLY MOVED IN TO THEIR NEIGHBORHOOD UNLIKELY AS IT MIGHT SEEM THOSE ARE PROBLEMS THAT CAN BE ADDRESSED BY COMPUTER TECHNOLOGY WHILE MOST POLICE STILL DON'T EVEN HAVE COMPUTERS FOR FILING ACCIDENT REPORTS A FEW ARE STARTING TO USE DATABASES TO TRACK DOWN CRIMINALS IN ONE MOVE THAT DEMONSTRATES LAWMEN'S GROWING APPETITE FOR COMPUTER TECHNOLOGY THE STATE OF CALIFORNIA IS EXPECTED TO SPEND AS MUCH AS 100 MILLION IN THE NEXT FIVE YEARS ON A CONTRACT AWARDED TO DIGITAL EQUIPMENT CORP TO COMPUTERIZE STATE NARCOTICS INVESTIGATIONS THE GOAL IS TO COMPUTERIZE INVESTIGATIONS STATEWIDE AND TO STORE ON COMPUTERS IN CENTRAL WAR ROOMS RECORDS ABOUT SUSPECTS UNDER SURVEILLANCE AND PLANNED OPERATIONS INVESTIGATORS WILL BE ABLE TO CALL UP INFORMATION AUTOMATICALLY FROM THE MOTOR VEHICLES BUREAU STANDARD CRIME REPORTS AND ANONYMOUS TIPS WE OFTEN HAVE MINUTIAE IN SEVERAL PLACES THAT IF COMBINED MIGHT BE ENOUGH TO GIVE US PROBABLE CAUSE FOR A SEARCH WARRANT SAYS MICHAEL FREER SPECIALAGENT SUPERVISOR FOR CALIFORNIA'S JUSTICE DEPARTMENT THE COMPUTER IS A TOOL TO SORT IT IT ALSO MAY BE A SAFETY DEVICE ELECTRONIC MAPS DESIGNED BY ETAK INC A UNIT OF NEWS CORP WOULD REVEAL WHETHER ONE FORCE'S PLANNED BUST WAS DANGEROUSLY NEAR A BUILDING THAT OTHER INVESTIGATORS KNEW WAS FILLED WITH ARMED PEOPLE THIS KIND OF SORTING PROVED USEFUL IN NEW YORK LAST MONTH WHEN COMPUTERS AIDED POLICE IN ARRESTING TWO SUSPECTS IN A VALENTINE'S DAY EXECUTION OF SIX PEOPLE IN A BRONX APARTMENT HOMICIDE DETECTIVES QUIZZING NEIGHBORS AND SOURCES HEARD REPEATED REFERENCES TO TWO NICKNAMES TATO AND DING DING THEY CHECKED A DATABASE KEPT BY THE CITY'S NARCOTICS DIVISION WHICH INCLUDES NAMES ADDRESSES ALIASES PAST ARRESTS AND TYPES OF DRUGS SOLD AND FOUND OUT WHOM THE NICKNAMES BELONGED TO LEADING TO THEIR ARRESTS COMPUTERS ALSO COULD BE TURNED AGAINST THE NATION'S SOARING MURDER RATE WHICH HAS BEEN ACCOMPANIED BY A SHARP DECLINE IN THE NUMBER SOLVED APPARENTLY BECAUSE MORE KILLINGS ARE COMMITTED BY UNRELATED PEOPLE ONE PROBLEM IS THAT LOCAL POLICE OFTEN DON'T FILL OUT ADDITIONAL FORMS SUCH AS THE 15PAGE FORM FOR THE FEDERAL BUREAU OF INVESTIGATION'S VICAP DATABASE OF UNSOLVED MURDERS VICAP WAS ESTABLISHED IN 1985 BUT HAS RECORDS FOR ONLY 7000 OF THE ROUGHLY 40000 UNSOLVED HOMICIDES SINCE THEN ACCORDING TO TERENCE GREEN WHO RUNS VICAP MAJ GARY TERRY OF THE HILLSBOROUGH COUNTY SHERIFF'S DEPARTMENT IN TAMPA FLA SAYS THAT DESPITE ITS WEAKNESSES VICAP HELPED ESTABLISH THAT A TRUCK DRIVER NAMED OSCAR RAY BOLIN CONVICTED OF THREE MURDERS NEAR TAMPA ALSO MIGHT BE RESPONSIBLE FOR 10 MURDERS IN OTHER STATES BY ASKING THE SYSTEM FOR INFORMATION ON UNSOLVED KILLINGS OF YOUNG WHITE FEMALES WHO HAD BEEN STRANGLED AND DUMPED IN REMOTE AREAS IN THE 26 STATES THAT MR BOLIN'S TRUCK RECORDS SHOWED HE HAD VISITED MAJ TERRY WAS ABLE TO SUGGEST HIM AS A POSSIBLE SUSPECT TO WIDELY SCATTERED INVESTIGATORS THE GRANDDADDY OF ALL THE CRIME DATABASES IS THE FBI'S 25YEAROLD NATIONAL CRIME INFORMATION CENTER EVERY LAW ENFORCEMENT AGENCY IN THE COUNTRY NOW FILES ALL OUTSTANDING ARREST WARRANTS ON THE NCIC SYSTEM SO THAT A HIGHWAY PATROLMAN CAN CALL IN A NAME OR DRIVER'S LICENSE NUMBER AND FIND OUT IF THE PERSON IS WANTED OR THE CAR WAS STOLEN SOMEWHERE IF NCIC HAS ANY WEAKNESS IT'S THAT OCCASIONALLY CRIMINALS LIE ABOUT WHO THEY ARE SAYS DAVID NEMECEK DEPUTY ASSISTANT DIRECTOR OF THE FBI'S CRIMINALJUSTICE INFORMATION SERVICES DIVISION ALTHOUGH NCIC IDENTIFIES 100000 WANTED SUSPECTS A YEAR THE HARD THING TO ARTICULATE IS HOW MANY GET AWAY HE SAYS BUT THE FBI HAS A SOLUTION TO NCIC'S WEAKNESSES WITHIN 60 DAYS IT PLANS TO AWARD A 77 MILLION CONTRACT FOR ITS NEXTGENERATION SYSTEM NCIC 2000 TWO YEARS FROM NOW NCIC 2000 WILL HAVE A DATABASE OF FINGERPRINTS AND MUG SHOTS OF SOME 500000 WANTED PEOPLE BY THAT TIME SOME POLICE CARS ACROSS THE COUNTRY MIGHT BE EQUIPPED WITH DEVICES THAT CAN READ AN INDEX FINGERPRINT COMPRESS THE IMAGE TO ONESIXTIETH ITS ORIGINAL SIZE TRANSMIT IT TO WASHINGTON AND GET A RESPONSE IN 60 SECONDS IN ANOTHER INSTANCE OF COMPUTERIZATION COMPUTERIZED MAPS KNOWN AS GEOGRAPHICAL INFORMATION SYSTEMS ARE REPLACING THE TRADITIONAL PINCOVERED MAP BOARDS STRATEGIC MAPPING INC SANTA CLARA CALIF HAS STARTED SELLING A 12250 SYSTEM ATLAS CRIME ANALYSIS WHICH RUNS ON PCS IN PITTSBURGH WILPEN GORR A CARNEGIE MELLON UNIVERSITY PROFESSOR WHO WORKS WITH POLICE SAYS THAT WHEN COMPLAINTS OF DRUG DEALING WERE PLOTTED ON THE COMPUTER MAP AGENTS SPOTTED NEW LOCATIONS IN TWO OR THREE WEEKS HALF THE TIME IT TOOK TO GLEAN THE PATTERN FROM LOOKING AT LISTS OF RESIDENTS' COMPLAINTS WHILE DATABASES AND ELECTRONIC MAPS MAY DIRECTLY CONTRIBUTE TO SOLVING SOME CRIMES COMPUTERIZATION'S BIGGEST BENEFIT IS IN REDUCING TIME SPENT ON PAPERWORK AND IMPROVING PRODUCTIVITY ONE REASON THAT CALIFORNIA IS ANXIOUS TO COMPUTERIZE ALL NARCOTICS INFORMATION IS THAT A STUDY SHOWED THAT INVESTIGATORS SPEND A HUGE 43 OF THEIR TIME LOCATING AND ACQUIRING INFORMATION THAT OTHER OFFICERS OR DEPARTMENTS ALREADY HAVE ONCE IT'S ALL ON COMPUTERS IT WILL BE EASY FOR DETECTIVES TO GET EVERY BIT OF AVAILABLE BACKGROUND INFORMATION IN A FEW MINUTES AT THE LOCAL LEVEL COMPUTERIZING IS ALREADY PAYING OFF IN SOME PLACES MICHAEL BOOKSER CHIEF OF POLICE IN BELLEVUE PA SAYS HE HAS CREATED A PAPERLESS POLICE DEPARTMENT USING A FREE DATABASE SYSTEM DEVELOPED BY THE STATE OF PENNSYLVANIA FOR SMALL DEPARTMENTS FROM AN 18MAN DEPARTMENT IN 1982 TO 13 NOW WE'RE HANDLING AN INCREASED WORKLOAD WITH THE SAME SUCCESS RATE HE SAYS ONE BENEFIT OF THE COMPUTER WHEN COMPLAINTS WERE PLOTTED HE DISCOVERED THAT THE WORST CRIME NIGHTS WERE SUNDAY AND TUESDAY NOT FRIDAY AND SATURDAY AS HE HAD LONG ASSUMED 9303080004 930308 REVIEW & OUTLOOK EDITORIAL DUMPING ON MEDICINE FIRST THE US PHARMACEUTICAL PRESENCE WAS SENT REELING BY THE ONETWO PUNCH OF ASSAULTS FROM PRESIDENT CLINTON AND CALIFORNIA REP HENRY WAXMAN NOW CALIFORNIA'S BIOMEDICAL INFRASTRUCTURE HAS BEEN SLAPPED DOWN BY THE ADMINISTRATION THE WARD VALLEY DESERT DISPOSAL SITE FOR THE TYPE OF RADIOACTIVE WASTE PRODUCED BY THE STATE'S BIOMEDICAL OPERATIONS HAS BEEN PUT ON HOLD BY BRUCE BABBITT'S INTERIOR DEPARTMENT WE DREW ATTENTION TO THIS IMPENDING DECISION IN A RECENT EDITORIAL BURYING THE FUTURE JANUARY 22 IT LOOKS AS IF SCIENTISTS AND STARTUP COMPANIES IN CALIFORNIA WILL HAVE TO WAIT TO SEE WHETHER THE MAN CALLED CLINTON'S FINEST CABINET APPOINTMENT BY THE NEW REPUBLIC WILL START THINKING ABOUT TOMORROW WHEN IT COMES TO THE LOGISTICS OF TECHNOLOGY IN OUR EARLIER EDITORIAL WE NOTED HOW A LAND SWAP BETWEEN THE US AND CALIFORNIA NEEDED TO OPEN THE WAY TO THE LONGSOUGHT AND LONGPROMISED WARD VALLEY DUMP WAS CHECKED BY A FEDERAL JUDGE SHORTLY BEFORE THE BUSH ADMINISTRATION ENDED VARIOUS OPPONENTS OF CHANGE WANT A FULL ENVIRONMENTAL REVIEW BEFORE THE PROPERTY TRANSFER OCCURS EVEN THOUGH THE DISPOSAL MATTER HAS BEEN AIRED FOR 10 YEARS AND AN ENVIRONMENTAL IMPACT REPORT WOULD STILL BE NEEDED PRIOR TO THE STATE INITIATING THE PROJECT ON THE LAND ACQUIRED FROM INTERIOR IT'S THE FAMILIAR STALLANDOBSTRUCT TACTIC WHICH WILL NOW BE GIVEN A FEW ADDITIONAL MONTHS TO RUN WHILE MR BABBITT STOPS TO TAKE COMMENTS MEANTIME WITH THEIR FORMER DISPOSAL OPTIONS CUT OFF AS OF JANUARY 1 CALIFORNIA'S HOSPITALS AND LABS WILL ACCUMULATE THE WASTE ONSITE WE CANNOT KEEP BUILDING 100000 CONCRETE BUILDINGS OR FIND THE LAND TO PUT THEM ON SAYS THOMAS EDGINGTON A LEADER OF THE STATE'S BIOMEDICAL FORCES A UNIVERSITY OF CALIFORNIA AND SCRIPPS INSTITUTE SPECIALIST WHO HAS STUDIED ISOTOPES AT THE OAK RIDGE NATIONAL LABORATORY AND IN HIROSHIMA DR EDGINGTON KNOWS THE SCIENCE OF THE ISSUE BUT IS EXASPERATED BY THE POLITICS THOSE POLITICS HAVE GOTTEN LOUDER NOW THAT CALIFORNIA HAS A NEW SENATOR NAMED BARBARA BOXER WHO IS A MASTER AT EXPLOITING POPULAR FEARS SHE IS ALREADY CLAIMING CREDIT FOR BLOCKING WARD VALLEY AND IS AT WORK ON OTHER TYPES OF WASTE DISPOSAL AS WELL PERHAPS MS BOXER WILL ASSUME THE POSITION OF THE SENATE'S GRAND OBSTRUCTIONIST IF HOWARD METZENBAUM ACTUALLY RETIRES WITH 25 OF THE NATION'S BIOMEDICAL RESEARCH AND A LARGE NUMBER OF THE COMPANIES THAT HAVE GROWN OUT OF IT CALIFORNIA IS THE CHIEF BATTLEGROUND IN THIS ONE OF THE MOST IMPORTANT SQUAREOFFS BETWEEN SCIENCE AND THIS COUNTRY'S EVERPRESENT SCAREMONGERS OTHER STATES SUCH AS COLORADO TO THE DEGREE THEY CAN AVOID THESE HANGUPS AND OFFER SAFE RATIONAL MEANS OF HANDLING THE MILDLY HAZARDOUS RESIDUE ARE TRYING TO RECRUIT IN CALIFORNIA BUT THE FRICTIONAL COSTS INVOLVED IN FIGHTING AND FLEEING BURDENSOME RESTRICTIONS SUGGEST THAT THE WARD VALLEY OUTCOME IS NOT A MATTER OF INDIFFERENCE TO THE MILLIONS WHO AWAIT THE PROMISE OF TECHNOLOGY'S TOMORROW 9303080003 930308 GLOBAL VIEW CHINA'S MIRACLE WORKERS MOSTLY LIVE ELSEWHERE BY GEORGE MELLOAN HONG KONG IF YOU WONDER WHY THE SOUTH OF CHINA IS EXPERIENCING A BOOM LOOK TO THE ECONOMIC REFORMS OF DENG XIAOPING FOR ONLY A PART OF THE ANSWER THE OTHER PART CAN BE FOUND IN A SINGLE STATISTIC OFFERED IN A WALL STREET JOURNAL ARTICLE LAST OCTOBER BY SINOLOGIST ANDREW BRICK THEN OF THE HERITAGE FOUNDATION TODAY HE WROTE AT LEAST 75 OF THE MAINLAND'S ROUGHLY 28000 ENTERPRISES WITH SIGNIFICANT FOREIGN EQUITY ARE FINANCED BY ETHNIC CHINESE WHO LIVE OUTSIDE CHINA HONG KONG AND TAIWAN ACCOUNT FOR TWOTHIRDS MR BRICK WHO THIS WEEK WILL JOIN THE ASIAN WALL STREET JOURNAL'S EDITORIALPAGE STAFF NOTED THAT THERE ARE ROUGHLY 55 MILLION OVERSEAS CHINESE SCATTERED AROUND THE WORLD PRODUCTS OF AN INTERMITTENT DIASPORA THAT HAS BEEN GOING ON FOR FIVE CENTURIES IN THE DOZEN ASIAN LANDS THROUGH WHICH THEY ARE SPRINKLED THE CHINESE COMMAND RESOURCES FAR BEYOND THEIR NUMBERS OF ASIA'S FOUR TIGERS ONLY KOREA IS NOT PREDOMINANTLY CHINESE INVESTMENTS BY THE OVERSEAS CHINESE IN CHINA SINCE ITS OPENING IN 1978 EXPLAIN WHY IT HAS BEEN ENJOYING AN ANNUAL ECONOMIC GROWTH RATE OF 10 MOST OF IT ACCOUNTED FOR BY THE SOUTHERN COASTAL PROVINCES INDEED THE INTERCONNECTIONS AMONG THE COASTAL PROVINCES HONG KONG AND TAIWAN ARE NOW SUCH THAT SOME ASIAN EXPERTS THINK OF THEM AS A SINGLE ECONOMIC BLOC JEFFREY KOO CHAIRMAN AND CEO OF CHINATRUST COMMERCIAL BANK SAID AT A G7 COUNCIL MEETING IN FRANKFURT IN JANUARY THAT HONG KONG'S ECONOMY HAS BEEN TIGHTLY WOVEN INTO THAT OF MAINLAND CHINA CUMULATIVE FOREIGN DIRECT INVESTMENT IN CHINA WAS BOOSTED TO MORE THAN 82 BILLION BY A LARGE SURGE LAST YEAR HONG KONG ACCOUNTS FOR 524 CHINA'S FOREIGN TRADE SOARED TO 150 BILLION LAST YEAR FROM ONLY 293 BILLION IN 1979 UNDERSTANDING THE OVERWHELMING ROLE OF THE OVERSEAS CHINESE IN THIS PHENOMENAL GROWTH IS THE KEY TO UNDERSTANDING MODERN CHINA THERE ARE NOW IN EFFECT TWO CHINAS THE BACKWARD POLITICAL CHINA OF THE COMMUNIST PARTY AND THE PROGRESSIVE COMMERCIAL CHINA MADE UP IMPORTANTLY OF FOREIGN INVESTORS AND THEIR CHINESE PARTNERS SOME THINK THAT THE DYNAMISM OF THE COMMERCIAL CHINA EVENTUALLY WILL OVERWHELM THE REACTIONARY POLITICAL CHINA BUT A LOOK AT CHINESE HISTORY RAISES ANOTHER POSSIBILITY THE TWO MAY COEXIST FOR QUITE SOME TIME BEFORE ONE SIGNIFICANTLY ALTERS THE OTHER WHEN POLITICAL CHINA ASSUMES CONTROL OF HONG KONG IN 1997 IT MAY STRENGTHEN ITS ABILITY TO EXERCISE AUTHORITARIAN POWER ALTHOUGH POSSIBLY AT SOME COST TO CHINA'S COMMERCIAL GROWTH DENG XIAOPING BEARS NO RESEMBLANCE TO MIKHAIL GORBACHEV MR GORBACHEV HAD NO OVERSEAS RUSSIANS TO FINANCE AN ECONOMIC REFORM CENTRAL CONTROL HAD BEEN DEEPLY ENTRENCHED BY A SOVIET COMMUNIST PARTY THAT HAD BEEN IN POWER MORE THAN 30 YEARS BEFORE MAO TSETUNG CONQUERED MAINLAND CHINA IN 1949 WHEREAS CHINA LAUNCHED A SUCCESSFUL AGRICULTURAL REFORM IN THE LATE 1970S THERE HAD BEEN NO SIGNIFICANT ECONOMIC REFORM IN THE SOVIET UNION WHEN MR GORBACHEV CAME TO POWER IN 1985 THUS MR GORBACHEV ULTIMATELY HAD LITTLE CHOICE BUT TO OPEN UP SOVIET POLITICS TO TRY TO SAVE THE ROTTING ECONOMIC SYSTEM HE DESERVES CREDIT FOR RECOGNIZING THAT NEED BUT HE DID NOT INTEND IT TO DESTROY THE COMMUNIST PARTY AS IT ULTIMATELY DID COMMUNIST IDEOLOGY IS ALL BUT DEAD IN CHINA TOO DESTROYED IN PART BY THE COLOSSAL BLUNDERS OF MAO BUT THE ABILITY OF THE COMMUNIST CADRES TO RETAIN POWER IS NOT DEAD THEY ARE INHERITORS OF A CENTURIESOLD IMPERIAL TRADITION THEY ARE CHINA'S MODERN MANDARINS AND THEY UNDERTOOK THE TASK OF ENSURING THE PARTY'S SURVIVAL WELL BEFORE THE SOVIETS EVEN SAW A THREAT THIS THEY DID BY OPENING UP CHINA TO THE OUTSIDE WORLD AND BY ALLOWING THE NATURAL COMMERCIAL INSTINCTS OF MAINLAND AND OVERSEAS CHINESE FREE PLAY WHEN CHINESE STUDENTS AND INTELLECTUALS INTERPRETED THIS TO MEAN THAT THEY WERE ON THE VERGE OF POLITICAL FREEDOM AS WELL THE PARTY DEMONSTRATED ITS MUSCLE AND THE 1989 BEIJING MASSACRE WAS THE RESULT ACCORDING TO REPORTS MR DENG LATER TRIED TO ASSURE THE WEALTHY TAIPANS OF HONG KONG THAT NONE OF THIS MEANT THEIR INVESTMENTS WERE NO LONGER WELCOME MR DENG DIDN'T WANT TO OFFEND HONG KONG INVESTORS EVEN THOUGH HE HAD OFFENDED ALMOST EVERYONE ELSE IN THE WORLD BUT EVENTS SINCE 1989 WITH CONTINUED POLITICAL JAILINGS AND SUPPRESSION OF DISSENT HAVE SHOWN THAT THERE ARE VERY FEW TENDENCIES WITHIN THE PARTY TO ACCOMPANY LIBERAL ECONOMIC POLICIES WITH POLITICAL LIBERALIZATION THE MANDARINS NOW KNOW THAT THE CHINESE PEOPLE ARE JUST AS FREEDOMHUNGRY AS PEOPLE ANYWHERE ELSE AND BEIJING'S INSTINCT IS TO KEEP THE LID ON THEM BY BOTH SUBTLE AND NOTSOSUBTLE MEANS BEIJING'S BEHAVIOR IS A THROWBACK TO IMPERIAL PRACTICE CHINESE GOVERNMENT HAS REVERTED TO TYPE AFTER THE WEIRD EFFORTS BY MAO TO CREATE A NEW CHINESE MAN THE MANDARINS WILL ENDEAVOR TO HOLD ON TO POWER HOPING THAT ALL OTHER CHINESE WILL FOCUS AS THEY HAVE IN CENTURIES PAST ON THE PRIVATE AND COMMERCIAL LINKS OF THEIR EXTENDED FAMILIES DIVORCING THEMSELVES INCREASINGLY FROM NATIONAL POLITICS IF THIS HAPPENS CHINA FOR ALL ITS ECONOMIC PROGRESS WILL REMAIN AN ANACHRONISM IT ALSO WILL NOT BE ABLE TO UNLOCK FULLY THE VAST HUMAN POTENTIAL THAT EXISTS AMONG ITS 117 BILLION PEOPLE ECONOMIC DEVELOPMENT WILL REMAIN A FRINGE PHENOMENON LITERALLY WITH THE FOREIGN EXCHANGE EARNINGS CHINA WILL GENERATE BEIJING WILL CONTINUE TO MODERNIZE ITS MILITARY FORCES ENDEAVORING TO STRENGTHEN ITS POWER BOTH INTERNALLY AND EXTERNALLY WHY DO THE OVERSEAS CHINESE MANY OF WHOM FLED THE TYRANNY OF COMMUNISM PARTICIPATE IN THE REHABILITATION OF CHINA THE ANSWER IS BOTH SIMPLE AND COMPLEX AT A SIMPLE LEVEL THE ANSWER IS THAT THEY DO IT BECAUSE THEY ARE CHINESE A LOT OF THE BUSINESS TIES THAT HAVE BEEN FORMED ARE AMONG CHINESE INSIDE AND OUTSIDE FROM THE SAME EXTENDED FAMILIES WITH NEW OPPORTUNITIES OPENING UP CHINESE BUSINESS FAMILIES ARE TAKING ADVANTAGE OF THEM ON A MORE COMPLEX LEVEL THERE NO DOUBT IS A HOPE AMONG THE OVERSEAS CHINESE THAT THE COMMERCIAL TIES THEY ARE DEVELOPING WITH THE MAINLAND WILL EVENTUALLY OVERWHELM THE MANDARINS OF BEIJING AND THEIR SUBORDINATES IN THE PROVINCES SOMETHING OF THE SORT MAY INDEED BE HAPPENING IN SUCH PLACES AS GUANGZHOU AND IN OTHER MAJOR COASTAL CITIES INCLUDING SHANGHAI LOCAL AUTHORITIES SOME OF THEM DIRECTLY ENGAGED IN COMMERCIAL RELATIONSHIPS WITH THE OUTSIDE WORLD ARE SHOWING A RISING SENSE OF INDEPENDENCE FROM BEIJING THAT HOWEVER IS NOT QUITE THE SAME THING AS A STRONG IMPULSE FOR DEMOCRATIC RULE THE MAINLAND CHINESE MAY HAVE TO LIVE WITH AUTHORITARIANISM FOR A GOOD WHILE LONGER THE KEY QUESTION IS HOW LONG IT WILL TAKE FOR THE NATURAL TENSION BETWEEN ECONOMIC PROGRESS AND AUTHORITARIANISM TO RESOLVE ITSELF AND DETERMINE CHINA'S FUTURE 9303080002 930308 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR RETAILERS SAY THEIR SALES ARE INCREASING STEADILY AS CONSUMERS BECOME MORE CONFIDENT IN THE STRENGTH OF THE ECONOMIC EXPANISON RETAIL SALES ROSE IN DECEMBER AND JANUARY AND ANALYSTS EXPECT ANOTHER INCREASE N FEBRUARY A COMMERCE DEPARTMENT REPORT DUE OUT THIS WEEK PROBABLY WILL SHOW RETAIL SALES POSTED A MODEST 04 GAIN IN FEBRUARY SAID BILL MACREYNOLDS DIRECTOR OF ECONOMIC FORECASTING FOR THE US CHAMBER OF COMMERCE RETAIL SALES HAVE BEEN AND ARE STILL DOING FINE HE SAID HE NOTED THAT IMPROVING SALES PROMPTED RETAILERS TO HIRE 13100 MORE WORKERS IN FEBRUARY MORE THAN DOUBLED THE 5900 HIRED THE MONTH BEFORE ALSO THE OVERALL INCREASE OF 365000 PAYROLL JOBS IN FEBRUARY AND THE DROP IN THE UNEMPLOYMENT RATE TO 7 FROM 71 SHOULD BOOST CONSUMERS' CONFIDENCE IN THE ECONOMY AND ENCOURAGE THEM TO CONTINUE SPENDING HE SAID BUT MR MACREYNOLDS CAUTIONED THAT PURCHASES OF BIGTICKET CONSUMER GOODS SUCH AS FURNITURE AND APPLIANCES COULD TAIL OFF THIS SPRING WHEN PEOPLE DISCOVER THEIR TAX REFUNDS AREN'T AS LARGE AS THEY EXPECTED THE BUSH ADMINISTRATION LAST YEAR REDUCED WITHHOLDINGS FROM EACH PAYCHECK IN AN ATTEMPT TO STIMULATE SPENDING AND BOOST THE ECONOMY 9303080001 930308 CIE DE SUEZ STOCK SURGED 4 FRIDAY TAKEOVER RUMORED SPECIAL TO THE WALL STREET JOURNAL PARIS THE SHARE PRICE OF FRENCH INDUSTRIAL AND FINANCIAL CONGLOMERATE CIE DE SUEZ SURGED ON HEAVY VOLUME FRIDAY ON UNSUBSTANTIATED TAKEOVER RUMORS AS WELL AS MARKET SATISFACTION WITH THE GROUP'S HANDLING OF ITS HEAVY EXPOSURE TO BAD REAL ESTATE LOANS ON FRIDAY SUEZ SHARES ROSE 4 TO 3182 FRANCS 5716 A SHARE THAT WAS ON TOP OF AN 86 FRANC OR 29 RISE ON THURSDAY THE DAY AFTER SUEZ ANNOUNCED THAT IT EXPECTS A 1992 LOSS OF AS MUCH AS 19 BILLION FRANCS MUCH DEEPER THAN THAT EXPECTED BY THE MARKET BUT SUEZ CHAIRMAN GERARD WORMS ALSO INDICATED THAT THE GROUP HAD DECIDED TO FRONTLOAD ALL THE PROVISIONS FOR BAD REAL ESTATE IT COULD FORESEE AT ONCE TO BE ABLE TO PRODUCE A CLEAN AND PROFITABLE BALANCE SHEET IN 1993 THE RUMORS OF A TAKEOVER WERE REPORTED IN THE DAILY LES ECHOS WHICH NAMED THE ANGLOFRENCH FINANCIER JIMMY GOLDSMITH AND A HOST OF MAJOR FRENCH INSURANCE COMPANIES THE ARTICLE SAID IT HAD NO CONFIRMATION OF THESE HYPOTHESES A SUEZ SPOKESWOMAN CALLED THE THEORIES FINANCEFICTION BUT SAID THAT THE GROUP DIDN'T KNOW WHETHER ANYONE IN PARTICULAR WAS BUYING THE STOCK JEANLOUIS GAUCHET A BANKING ANALYST WITH BANQUE NSM SAID THAT WHILE THERE WAS NO CONFIRMATION OF ANY IMPENDING OPERATION WHAT'S CERTAIN IS THAT PEOPLE ARE SPECULATING THAT SUEZ WILL BE OBLIGED TO MAKE BIG STRATEGIC MOVES OR THERE WILL BE ATTACKS FROM SOMEWHERE GIVEN ITS POOR FINANCIAL PERFORMANCE MR WORMS HAS BEEN SAYING FOR SOMETIME THAT IMPROVING SHAREHOLDER'S YIELD IS A PRIORITY MR GAUCHET NOTED THAT WHEN CIE FINANCIERE DE PARIBAS ANNOUNCED ITS FIRST LOSS IN 1991 ALSO AFTER CHOOSING TO LOAD PROVISIONS ALL IN ONE YEAR THE STOCK WENT UP 2025 SHORTLY AFTERWARD 9303080147 930219 THE AMERICAS CHEATING THWARTS GROWTH OF CAPITAL MARKETS IN ARGENTINA BY CRISTOBAL WILLIAMS BUENOS AIRES ARGENTINA HAS MADE BIG LEAPS TO A MARKET ECONOMY IN THE PAST THREE YEARS FOREIGN TRADE HAS BEEN LIBERALIZED STATE COMPANIES ARE BEING PRIVATIZED WILDLY INEFFICIENT SUBSIDIES HAVE BEEN SLASHED AND INFLATION HAS BEEN TAMED HOWEVER THE PROTECTION OF PROPERTY RIGHTS AGAINST ABUSE BY PRIVATE COMPANIES IS STILL WOEFULLY INADEQUATE THE LOSS OF ONEHALF OF THE STOCK MARKET'S CAPITALIZATION SINCE ITS LATE MAY 1992 PEAK WILL PROBABLY NOT HARM THE ECONOMY MUCH BUT IT SHOWS THAT MARKET FREEDOM ALONE WHILE VERY IMPORTANT IS NOT ENOUGH FOR THE CAPITAL MARKETS' PROSPERITY ARGENTINA'S 1991 STOCK MARKET BOOM WHICH LED TO A FOURFOLD DOLLAR INCREASE IN THE INDEX WAS BASED PRIMARILY ON HOPES THAT THE SUBSTANTIVE ECONOMIC REFORMS INITIATED BY ECONOMY MINISTER DOMINGO CAVALLO WOULD LEAD TO STRONG ECONOMIC GROWTH CURIOUSLY HOWEVER THE REFORM DIDN'T RESULT IN DECENT REPORTED PROFITS FOR THE COMPANIES LISTED ON THE STOCK EXCHANGE REPORTED PROFITS FELL IN THE SECOND QUARTER OF 1992 TO JUST 12 OF BOOK VALUE A YEAR AFTER A PREVIOUS BOUNCE TO A STILLPITIFUL 2 EXCLUDING FROM THE ANALYSIS A FEW NEWLY PRIVATIZED UTILITIES OF THE 100 LARGEST COMPANIES 40 ARE LOSING MONEY EVEN AFTER THE 1992 MARKET COLLAPSE STOCK MARKET CAPITALIZATION IS HOVERING AT A STRATOSPHERIC 80 TIMES THE YEARLY PROFITS THE STOCK MARKET SHORTCOMINGS ARE THE RESULT OF A GENERALIZED CHEATING OF THE MINORITY SHAREHOLDERS COMPANIES HIDE THEIR PROFITS BOTH FROM THE LOCAL INTERNAL REVENUE SERVICE AND FROM THE MINORITY SHAREHOLDERS COMPANIES LISTED ON THE STOCK EXCHANGE HAVE REPORTED VERY LOW PROFITS FOR DECADES UNDER THE MOST DIVERSE ECONOMIC POLICIES MOST REINVEST WHATEVER PROFITS THEY REPORT MOST DID NOT PAY OUT CASH DIVIDENDS DURING THE ENTIRE DECADE OF THE 1980S CASH DIVIDENDS ARE SUCH A RARITY THAT THE STOCK MARKET'S WEEKLY BULLETIN MAGAZINE REPORTS THEM IN FOOTNOTES AND LAST YEAR THEY AMOUNTED TO JUST 06 OF BOOK VALUE THIS SITUATION IS CONSIDERED NORMAL BY MANY FOR EXAMPLE MARCELO OTERMIN A BUENOS AIRESBASED INVESTMENT CONSULTANT SAYS THAT DISTRIBUTING CASH WOULD REDUCE THE COMPANIES' CAPITAL THERE IS NOTHING WRONG ABOUT NOT PAYING OUT PROFITS UNLESS THE CONTROLLING STOCKHOLDERS CHEAT THE MINORITIES BUT THAT SEEMS TO BE PRECISELY THE PROBLEM THAT ARGENTINE COMPANIES HAVE MUCH LARGER PROFITS THAN THEY REPORT WITH THE DIFFERENCE GOING INTO THE POCKETS OF THE CONTROLLING SHAREHOLDERS IS CLEAR EACH COMPANY HAS ABOUT FOUR MAJOR STOCKHOLDERS AND ONLY A HANDFUL OF COMPANIES HAVE OUTSTANDING SHARES THE AGGREGATED CASH PROFITS FOR THE CONTROLLING GROUP OF STOCKHOLDERS OF COMPANIES LISTED ON THE STOCK EXCHANGE WAS ABOUT 1000 A MONTH FROM 1969 TO 1985 THESE CASH DIVIDENDS CANNOT REMOTELY EXPLAIN THE CONTROLLING SHAREHOLDERS LIFESTYLES LET ALONE THEIR INVESTMENTS ABROAD SOME HAVE PAINTINGS IN THEIR LIVING ROOMS WORTH MORE THAN A DECADE'S WORTH OF THE CASH THEY OFFICIALLY GOT FROM THEIR COMPANIES WHILE FEW COMPLAINTS MAKE IT INTO THE PRESS MOST SMALL INVESTORS KNOW ABOUT THIS AND SHUN THE MARKET SINCE CASH DIVIDENDS ARE SO LOW THE MAIN REASON WHY SMALL STOCKHOLDERS OWN STOCK AT ALL IS BECAUSE OF THEIR EXPECTATIONS ABOUT HOW PRICES WILL CHANGE THIS LEADS TO WILD SPECULATIVE GYRATIONS MOST OTHER POTENTIAL CAPITALMARKET INVESTORS SEND THEIR MONEY ABROAD INVEST IT IN A SMALL COMPANY OF THEIR OWN OR LEND OUT MONEY INFORMALLY THIS HAS LED TO A SIGNIFICANT DECLINE IN THE NUMBER OF COMPANIES LISTED IN THE MARKET FROM 669 IN 1965 TO ABOUT 170 TODAY SUBSCRIPTIONS HAVE TYPICALLY ACCOUNTED FOR LESS THAN 05 OF YEARLY INVESTMENT MOST COMPANIES ARE AT LEAST 70 OWNED BY A FEW CONTROLLING STOCKHOLDERS ONLY TWO CELULOSA SA AND ALPARGATAS SA HAVE A CAPITAL STRUCTURE OPEN ENOUGH TO FIND BATTLES FOR CONTROL OF STOCK LITTLE HAS BEEN DONE UNTIL NOW ABOUT THE POOR PERFORMANCE OF ARGENTINA'S CAPITAL MARKETS INVESTMENT OPPORTUNITIES ARE USUALLY LIMITED TO THOSE THAT CAN BE FINANCED ENTIRELY BY JUST ONE COMPANY WITHOUT JOINT VENTURES AND WITHOUT A HEALTHY STOCK MARKET THE MIDDLE CLASS IS EXCLUDED FROM PARTICIPATION IN CORPORATE PROPERTY INVESTMENT IS STILL POSSIBLE BUT IT REQUIRES A CONCENTRATION OF OWNERSHIP THAT MAY PROVE POLITICALLY INVIABLE AND SOCIALLY REGRESSIVE THE ARGENTINE TAX STRUCTURE DISCRIMINATES HEAVILY AGAINST THE MOSTLY SMALL INVESTORS IN THE FINANCIAL MARKETS AND IN FAVOR OF OWNERS OF FARMS REAL ESTATE OR CONTROLLING INTEREST IN CORPORATIONS NOT MANY MORE THAN 300 INDIVIDUALS INCLUDING THE OWNERS OF MOST OF ARGENTINA'S LEADING CORPORATIONS PAY MORE THAN 10000 A YEAR IN TAXES ON PERSONAL PROPERTY BUT ANY SMALL SAVER WITH SAY 50000 IN THE BANK IS BEING CHARGED DISGUISED TAXES OF ABOUT 3500 REFORMING THIS STATE OF AFFAIRS IS ARGENTINA'S NEXT GREAT CHALLENGE THE PRESIDENT OF THE ARGENTINE SECURITIES AND EXCHANGE COMMISSION MARTIN REDRADO HAS DONE LITTLE TO OVERHAUL THE REGULATORY STRUCTURE OF THE CAPITAL MARKETS TO MAKE THEM MORE TRANSPARENT HE HAS CHOSEN INSTEAD TO PROPOSE A MECHANISM GUARANTEED SIMPLY TO ENCOURAGE A SEEMINGLY ENDLESS CYCLE OF RALLIES AND CRASHES A GOVERNMENT STOCK PRICE SUPPORT FUND IN WHICH SWIFTLY SINKING STOCKS WOULD BE BOUGHT UP BY THE GOVERNMENT TO KEEP THEM AFLOAT FORTUNATELY THIS POTENTIAL FISCAL BLACK HOLE WAS OVERRULED BY ECONOMY MINISTER CAVALLO IF THE ARGENTINE MARKET REVOLUTION IS GOING TO BE SUCCESSFUL THE CAPITAL AND FINANCIAL MARKETS WILL HAVE TO BE REFORMED BY CUTTING CHEATING TO A MINIMUM AND REMOVING DISCRIMINATION AGAINST MIDDLECLASS SAVERS AND INVESTORS CORPORATE LAW WILL HAVE TO BE OVERHAULED TO PROTECT MINORITY SHAREHOLDERS FROM BOOK TAMPERING BY THE MANAGEMENT CLEAR RULES FOR CORPORATE TRANSPARENCY IN ARGENTINA SHOULD INCLUDE THE FOLLOWING INSPECTION RIGHTS FOR MINORITY STOCKHOLDERS AND ALSO FOR LARGE CREDITORS OF AUDITED BOOKS AND COMPANY WAREHOUSES RULES THAT WOULD PREVENT THE PYRAMIDATION OF CONTROL RULES DEMANDING THAT PROFITS BE ENTIRELY PAID OUT AS CASH DIVIDENDS UNLESS THEY EXCEED SOME MINIMUM AND A RIGHT FOR MINORITY STOCKHOLDERS TO HAVE THEIR STOCKS REPURCHASED BY THE COMPANY AT SOME FRACTION OF THEIR BOOK VALUE IN ADDITION THE GOVERNMENT MUST STOP ITS ABUSIVE AND OFTEN DISGUISED TAXATION OF SMALL SAVERS' BANK DEPOSITS WHILE IT BARELY TOUCHES THE ASSETS OF CORPORATE OWNERS MUCH OF THIS MAY SEEM INTERVENTIONIST BUT IT'S INTERVENTIONISM IN ORDER TO SECURE THE PROPERTY RIGHTS OF INVESTORS MR WILLIAMS IS AN ARGENTINIAN WHO WORKS AS A COMMODITY TRADER IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR ARGENTINA UPHOLDS FREE MARKET PHILOSOPHY WSJ MARCH 5 1993 9302190151 9303080141 930217 NOTABLE & QUOTABLE THOMAS JEFFERSON ADDRESSING SOME OF THE ISSUES THAT AGAIN FACE HIS NAMESAKE WILLIAM JEFFERSON CLINTON IN 1993 IN A LETTER TO SAMUEL KERCHEVAL POSTED FROM MONTICELLO IN JULY 1816 IF WE RUN INTO SUCH DEBTS AS THAT WE MUST BE TAXED IN OUR MEAT AND IN OUR DRINK IN OUR NECESSARIES AND OUR COMFORTS IN OUR LABORS AND OUR AMUSEMENTS FOR OUR CALLINGS AND OUR CREEDS AS THE PEOPLE OF ENGLAND ARE OUR PEOPLE LIKE THEM MUST COME TO LABOR SIXTEEN HOURS IN THE TWENTYFOUR GIVE THE EARNINGS OF FIFTEEN OF THESE TO THE GOVERNMENT FOR THEIR DEBTS AND DAILY EXPENSES AND THE SIXTEENTH BEING INSUFFICIENT TO AFFORD US BREAD WE MUST LIVE AS THEY NOW DO ON OATMEAL AND POTATOES HAVE NO TIME TO THINK NO MEANS OF CALLING THE MISMANAGERS TO ACCOUNT BUT BE GLAD TO OBTAIN SUBSISTENCE BY HIRING OURSELVES TO RIVET THEIR CHAINS ON THE NECKS OF OUR FELLOWSUFFERERS THE BULK OF SOCIETY IS REDUCED TO BE MERE AUTOMATONS OF MISERY AND TO HAVE NO SENSIBILITIES LEFT BUT FOR SINNING AND SUFFERING AND THE FORE HORSE OF THIS FRIGHTFUL TEAM IS PUBLIC DEBT TAXATION FOLLOWS THAT AND IN ITS TRAIN WRETCHEDNESS AND OPPRESSION SEE RELATED LETTER LETTERS TO THE EDITOR OLD TOM KNEW WHAT HE WAS TALKING ABOUT WSJ MARCH 5 1993 9302170040 9303080139 930212 POTOMAC WATCH CHAMBER MAIDS BIG BUSINESS COURTS CLINTON BY PAUL A GIGOT PRESIDENT CLINTON IS PROMISING TO STAND UP FOR AVERAGE WORKERS AND SOCK IT TO THE ECONOMIC ELITE SO WHAT DOES IT MEAN WHEN THE ELITE OF ELITES BIG BUSINESS STARTS SUCKING UP TO BILL CLINTON MAYBE THE ELITES KNOW SOMETHING AVERAGE FOLKS DON'T TAKE DETROIT'S BIG THREE WHOSE CHAIRMEN WERE AMONG THE FIRST TO MAKE A PILGRIMAGE TO LITTLE ROCK THE AUTO CHIEFS BEGGED THE NEW PRESIDENT TO GO EASY ON FLEETMILEAGE LAWS AND SLAP 25 TARIFFS ON JAPANESE MINIVANS THEN THEY TURNED AROUND AND ENDORSED A BIG NEW GAS TAX PERHAPS THE BIG THREE FIGURE THAT BY FAIRNESS MR CLINTON REALLY MEANS THAT AVERAGE WORKERS SHOULD PAY MORE TO DRIVE AND 1300 MORE EACH TO BUY A MINIVAN THEN THERE'S THE US CHAMBER OF COMMERCE ONCE THE VERY SYMBOL OF RUGGED FREE ENTERPRISE FOR YEARS IT HAS OPPOSED THE ENERGY TAX THAT MR CLINTON IS LIKELY TO PROPOSE BUT LAST WEEK THE CHAMBER SACKED ITS CHIEF ECONOMIST FOR INNOCENTLY SIGNING A LETTER THAT OPPOSED AN ENERGY TAX LEST HIS ACT OF CONSISTENCY RILE THE WHITE HOUSE THE CHAMBER IS NOW ANGLING TO CASH IN ON THE HIGHTECHNOLOGY SUBSIDIES THAT MR CLINTON HAS TALKED ABOUT AND DON'T FORGET THE BIG NATURAL GAS LOBBY THE AMERICAN GAS ASSOCIATION ITS MEMBERS HAVE JUST VOTED TO OPPOSE A TAX ON THEMSELVES ENERGY TAX BUT THEY WERE GENEROUS ENOUGH TO RECOMMEND A TAX ON THEIR COMPETITORS GASOLINE OR ON EVERYONE ELSE A VALUEADDED TAX THEY VOTED FOR THIS AT THE SAME MEETING THAT MEMBERS ROSE TO SAY THEY SHOULDN'T FIGHT WITH A WHITE HOUSE THAT WILL PROPOSE NATURAL GAS SUBSIDIES NO DOUBT THESE BIG BUSINESS OUTFITS THINK THEY'RE JUST GOOD CITIZENS DOING THEIR PART TO SACRIFICE BUT THEIR PROFILES IN SELFINTEREST ARE A REMINDER OF WHY THE BIGGEST AMERICAN BUSINESSES ARE SUCH UNRELIABLE ALLIES IN THE FIGHT TO PRESERVE A FREE ECONOMY THEY'LL SELL OUT FOR A SONG AND A SUBSIDY THEY ALSO ILLUSTRATE THAT FAIRNESS RHETORIC NOTWITHSTANDING THE POWER OF GOVERNMENT IS USUALLY BENT TO SERVE THE POWERFUL THIS STORY IS AS OLD AS ADAM SMITH BUT IT HASN'T BEEN SO OBVIOUS HERE SINCE THE INTERVENTIONIST HEYDAY OF THE 1970S THE NATIONAL ASSOCIATION OF MANUFACTURERS ENDORSED RICHARD NIXON'S WAGE AND PRICE CONTROLS BACK THEN WHILE THE AFLCIO HAD THE GOOD SENSE TO OPPOSE THEM GENERAL MOTORS AND FORD HELPED PEDDLE JIMMY CARTER'S RUBE GOLDBERG ECONOMIC POLICIES THE COSTS OF WHICH THEY COULD ABSORB MORE EASILY THAN COULD THEIR STRUGGLING COMPETITOR CHRYSLER THE RETURN OF THIS IMPULSE IS TYPIFIED BY THE INTELLECTUAL COUP AT THE US CHAMBER OF COMMERCE IN THE LATE 1970S AND 1980S THE CHAMBER EMERGED AS A VALUABLE VOICE FOR PRINCIPLES LOW TAXES AND REGULATION OPEN TRADE THAT IT SAID SHOULD APPLY TO ALL AMERICAN BUSINESS BUT IT'S NOW DROPPED MOST OF THAT IN FAVOR OF A CRASS PURSUIT OF MORE NARROW CORPORATE SELFINTEREST THE ARCHITECT OF THIS COUP IS WILLIAM ARCHEY A GRUFF FORMER FEDERAL BUREAUCRAT WHO NOW DOMINATES CHAMBER POLICY HE WAS BEHIND THE FIRING LAST WEEK OF LARRY HUNTER THE RESPECTED ECONOMIST WHO WAS THE LAST STALWART OF THE CHAMBER'S FREEMARKET ERA MR ARCHEY'S AGENDA IS TO MAKE THE CHAMBER A PLAYER IN WASHINGTON BY BEING LESS IDEOLOGICAL HE LIKES TO REFER TO PEOPLE WHO OPPOSE REGULATION AS WHACKO OR FANATICS SUCH CHARM HAS PURGED THE CHAMBER OF ANYONE WHO WORKED FOR ANY PRINCIPLE HIGHER THAN A PAYCHECK DAMON TOBIAS JOINED THE CHAMBER FROM THE STAFF OF TEXAS DEMOCRATIC REP CHARLIE STENHOLM TO DO LABOR POLICY BUT LEFT AFTER ONLY 18 MONTHS WHEN IT BECAME OBVIOUS THAT EVEN HE WAS TOO IDEOLOGICAL FOR MR ARCHEY'S TASTES THE CHAMBER'S NEW SLOGAN THE FIGHT GOES ON IS MOCKED INTERNALLY AS THE FLIGHT GOES ON IN PRACTICE MR ARCHEY'S PRAGMATISM HAS MADE THE CHAMBER IRRELEVANT TO MOST RECENT POLICY FIGHTS IT WAS AWOL ON THE FAMILYLEAVE BILL PERHAPS BECAUSE THE BIG COMPANIES THAT DOMINATE THE CHAMBER BOARD CAN ABSORB THE COSTS BETTER THAN SMALLER COMPANIES CAN IT IS MISSING IN ACTION ON MINIMUM WAGE AND IT APPEARS TO BE TAKING A POWDER ON TAXES SOME EMPLOYEES HAVE BEGUN TO WONDER IF SUCH PASSIVITY DOESN'T STEM IN PART FROM THE CHAMBER'S UNWILLINGNESS TO RISK ITS OWN FEDERAL FAVORS IT GETS 57 MILLION A YEAR TO HELP PROMOTE FREEMARKET POLICIES ABROAD NO IRONY APPARENTLY INTENDED SUCH CORPORATISM IS ECHOED ON THE CHAMBER BOARD THE CHAMBER OPPOSED CHOICE FOR PRIVATE SCHOOLS AFTER WILLIAM LURTON HEAD OF JOSTENS INC BECAME CHAIRMAN JOSTENS SELLS EDUCATIONAL SOFTWARE TO PUBLICSCHOOL ADMINISTRATORS WHO DON'T MUCH LIKE CHOICE ANOTHER BOARD MEMBER JAMES BAKER OF ARVIN INDUSTRIES HAS HELPED TURN THE CHAMBER FROM A FREE TRADER INTO A SUPPORTER OF AMERICA'S CRAZY ANTIDUMPING LAWS ARVIN MAKES AUTO PARTS QUID PRO QUOTA NO DOUBT THESE MEN THINK THEY'RE ACTING OUT OF BETTER MOTIVES BUT THEIR SELFINTEREST IS ALL THAT'S OBVIOUS ONCE THEY ABANDON THE HIGH GROUND OF MARKET PRINCIPLES THIS MAY EXPLAIN WHY THE CHAMBER HAS BEEN LOSING MEMBERS DUES AND CLOUT 72 COMPANIES WORTH 450000 ACCORDING TO ONE INTERNAL MEMO WHILE SUCH SMALL BUSINESS STALWARTS AS THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STILL COUNT FOR SOMETHING ON CAPITOL HILL SPECIAL PLEADERS ARE NEVER VERY CREDIBLE SEE RELATED LETTER LETTERS TO THE EDITOR SCRATCH A BUSINESSMAN AND FIND A SOCIALIST WSJ FEB 25 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR BIG BUSINESS HAS ONE IDEOLOGY WSJ MARCH 51993 9302120090 9302250080 9303080137 930222 REVIEW & OUTLOOK EDITORIAL ROSIER SCENARIOS NO GIMMICKS NO CAPS NONE OF THE KIND OF SMOKE AND MIRRORS THAT WE'VE SEEN IN THE LAST FEW YEARS BUDGET DIRECTOR LEON PANETTA TOLD REPORTERS AT THE WHITE HOUSE LAST WEEK OH WHEN MR PANETTA WAS CASTING THESE ASPERSIONS THE CLINTONITES WERE STILL CREDITING THEMSELVES WITH 493 BILLION IN DEFICIT REDUCTION OVER THE NEXT FOUR YEARS THE FIGURE WAS HIGHLIGHTED BOLDED AND UNDERLINED IN THE BRIEFING DOCUMENTS DISTRIBUTED TO THE PRESS BY THE PRESIDENT'S STAFFERS IT WASN'T UNTIL A DAY LATER THAT THE WHITE HOUSE DRIBBLED OUT A MISSING KEY SUMMARY PAGE WITH THE MAGIC ASTERISK IT SEEMS MR CLINTON WAS TALKING ABOUT THE GROSS DEFICIT THAT IS COUNTING HIS TAX HIKES AND SPENDING CUTS BUT NOT HIS NEARLY 170 BILLION IN NEW SPENDING FOR THOSE WHO INSIST ON BEING PICKY THE CLINTONITES NOW SAY NET DEFICIT REDUCTION WILL BE ONLY 325 BILLION OVER FOUR YEARS ALL OF THIS CAME TO LIGHT OF COURSE AFTER THE OPENING NIGHT MEDIA CELEBRATION WAS SAFELY OUT OF THE WAY IN THE RUNUP TO WEDNESDAY'S SPEECH TAXPAYERS WERE ALSO LED TO EXPECT AT LEAST 2 IN SPENDING CUTS FOR EVERY 1 IN NEW TAXES BY THE BIG NIGHT THE RATIO HAD BECOME ONETOONE BUT THAT WAS STILL BEFORE THE MAGIC ASTERISK APPEARED IN THE COLD LIGHT OF THE MORNING AFTER EVEN DEMOCRATS ON THE HILL ARE GROUSING ABOUT IT BEING A TAX HEAVY PACKAGE BY THE CLINTONITES'S OWN RECKONING THEY RAISE TAXES BY 242 BILLION OVER FOUR YEARS THAT'S ALREADY A FOURTOONE RATIO WHEN COMPARED TO THEIR MORNINGAFTER DEFICIT REDUCTION TARGET AND A SECOND LOOK AT SOME OF THEIR SPENDING CUTS REVEALS THAT THEY MIGHT BETTER BE CHARACTERIZED AS REVENUE INCREASES TOO FOR INSTANCE MR CLINTON PLANS TO PICK UP SEVERAL BILLION DOLLARS BY AUCTIONING OFF PIECES OF THE ELECTROMAGNETIC SPECTRUM AND BY LEVYING A PASSEL OF USER FEES SENATOR WILLIAM ROTH AND FORMER BUSH ADMINISTRATION ECONOMIST MICHAEL BOSKIN ADD THESE UP AND INDEPENDENTLY CONCLUDE THAT THE REAL RATIO OF REVENUES TO SPENDING CUTS IS 5TO1 SOME OF THESE USER FEES AND CHARGES WERE GOOD PUBLIC POLICY WHEN THE REAGAN AND BUSH ADMINISTRATIONS WERE PROPOSING THEM BUT THERE IS CLEARLY AN ELEMENT OF COYNESS IN THE WAY THIS HAS BEEN PRESENTED THE MOST NOTORIOUS EXAMPLE IS THE 21 BILLION TAX ON SOCIAL SECURITY RECIPIENTS IT'S HERALDED EITHER AS A SPENDING CUT OR A SOAKTHERICH TAX HIKE DEPENDING ON WHAT PAGE OF THE PROGRAM YOU TURN TO AT THE END OF THE DAY OF COURSE IT'S QUESTIONABLE WHETHER THERE WILL BE ANY REAL SPENDING CUTS OR PROGRESS AGAINST THE DEFICIT MR CLINTON'S PLAN ASSUMES THAT LOADING UP THE ECONOMY WITH NEW TAXES WON'T SLOW IT DOWN AND THEREBY PINCH TAX REVENUES AND HE INCLUDES BILLIONS OF DOLLARS IN SAVINGS THAT AREN'T GENERATED BY CUTTING SPECIFIC PROGRAMS AND BENEFITS BUT MERELY BY WAVING VAGUELY IN THE DIRECTION OF STREAMLINING AND REFORMS NEITHER MR CLINTON NOR HIS BUDGET CHIEF SEEM PARTICULARLY ABASHED BY THESE REVELATIONS INSTEAD THEY'VE BEEN MAKING INSINUATIONS ABOUT REPUBLICAN MANLINESS WHEN IT COMES TO BUDGET CUTTING IT SEEMS TO US WE RECALL MR REAGAN ASKING TO ZEROOUT WHOLE PROGRAMS AND AGENCIES ONLY TO BE TOLD HIS BUDGETS WERE DEAD ON ARRIVAL OF COURSE MR CLINTON'S PROPOSAL ALSO MAKES A SHOW OF GOING AFTER PROGRAMS THAT DON'T WORK OR ARE NO LONGER NEEDED AND YES YOU HAVE TO HAND IT TO HIM HE REALLY TAKES A MALLET TO THE STATE JUSTICE INSTITUTE WHATEVER THAT IS AT THE MOMENT THE CHANGE APPEARS TO BE ANOTHER PROMISE TO CUT SPENDING AND HUGE NEW TAXES THAT ARE GUARANTEED SEE RELATED LETTER LETTERS TO THE EDITOR GETTING TO KNOW ALL ABOUT US WSJ MARCH 5 1993 9302220080 9303080032 930225 BUSINESS BRIEF GTE CORP COMPANY FORMS A SUBSIDIARY IN RESPONSE TO US OPINION GTE CORP SAID IT FORMED A NEW SUBSIDIARY TO OFFER INTELLIGENTNETWORK SERVICES WHICH INCLUDE CALLVALIDATION SERVICES AND OTHER DATA SERVICES THE LOCAL TELEPHONE COMPANY BASED IN STAMFORD CONN SAID IT TOOK THE ACTION TO GET AROUND A JUSTICE DEPARTMENT OPINION THAT CERTAIN GTE SERVICES VIOLATED A CONSENT DECREE LIMITING THE ACTIVITIES GTE IS ALLOWED TO OFFER DIRECTLY WHILE GTE SAID IT DISAGREED WITH THE JUSTICE DEPARTMENT'S DEC 4 OPINION WHICH CONCERNED SOCALLED SIGNALLING SYSTEM 7 SERVICES IT CHANGED ITS PRACTICES A COMPANY SPOKESWOMAN SAID THE GOVERNMENT HAS APPROVED GTE'S PLAN TO ISOLATE ALL ITS SUCH SERVICES IN THE NEW UNIT GTE INTELLIGENT NETWORK SERVICES INC SS7 IS THE NAME FOR A TYPE OF DATA NETWORK THAT WORKS IN CONCERT WITH REGULAR TELEPHONE NETWORKS TO HELP PHONE CALLS GO THROUGH ENSURE CALLING CARD NUMBERS ARE VALID AND OTHER FUNCTIONS GTE WILL TRANSFER ALL SUCH SERVICES WHICH IT HAS BEEN OFFERING FOR FIVE YEARS INTO ITS NEW UNIT BY JULY 1 THE SPOKESWOMAN SAID THE JUSTICE DEPARTMENT IS CURRENTLY REVIEWING GTE CORP'S PLAN TO MOVE ITS QUERY RESPONSE SERVICE A CALLINGCARD VALIDATION SERVICE TO A NEW SUBSIDIARY IN A FEB 25 ARTICLE A GTE SPOKESWOMAN INCORRECTLY INDICATED THAT THE JUSTICE DEPARTMENT HAD APPROVED THE PLAN 9303050192 930305 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 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 305 30 TO 89 DAYS 306 90 TO 149 DAYS 310 150 TO 179 DAYS 312 180 TO 239 DAYS 315 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 312 30 DAYS 312 60 DAYS 312 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 266 TWO MONTHS 267 THREE MONTHS 278 SIX MONTHS 295 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 307 THREE MONTHS 315 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 3 90 DAYS 302 120 DAYS 303 150 DAYS 304 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 625 GERMANY 9 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 MARCH 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 704 60 DAYS 714 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 707 60 DAYS 717 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303050190 930305 INTERNATIONAL GERMANY'S CENTRAL BANK KEEPS KEY RATES STEADY SPECIAL TO THE WALL STREET JOURNAL FRANKFURT THWARTING HOPES FOR LOWER GERMAN INTEREST RATES THE BUNDESBANK'S POLICYMAKING COUNCIL DECIDED TO LEAVE ITS KEY INTEREST RATES UNCHANGED AT ITS REGULAR BIWEEKLY MEETING THE CENTRAL BANK IN ANOTHER SIGN OF INTERESTRATE STUBBORNNESS ALSO DIDN'T ANNOUNCE ANY CHANGES FOR NEXT WEEK'S SECURITIES REPURCHASE OPERATIONS THE ANNOUNCEMENT CAME AFTER A WEEK OF INTENSE SPECULATION OVER WHAT THE BUNDESBANK WOULD DO MANY MARKET WATCHERS BELIEVED THAT WEAKENING ECONOMIC INDICATORS AND SINKING IMPORT PRICES IN GERMANY ALONG WITH A LOWERING OF WAGES WOULD HELP PAVE THE WAY FOR THE BUNDESBANK TO EASE ITS TIGHT MONETARY POLICY WHICH HAS ANGERED NEIGHBORING EUROPEAN COUNTRIES THE DECISION LEAVES THE LOMBARD RATE AT 90 AND THE DISCOUNT RATE AT 80 BOTH RATES WERE LAST LOWERED FEB 4 THE LOMBARD RATE IS THE RATE AT WHICH BANKS CAN BORROW EMERGENCY FUNDS FROM THE CENTRAL BANKS AND ACTS AS AN EFFECTIVE CEILING ON OVERNIGHT RATES THE DISCOUNT RATE IS THE CHEAPEST FORM OF BANK REFINANCING YESTERDAY BEFORE THE BUNDESBANK'S LATEST DECISION ECONOMICS MINISTERS FROM THE 16 GERMAN STATES ENDED A TWODAY MEETING BY LABELING THE FEBRUARY RATE CUT AS INSUFFICIENT 9303050189 930305 FINANCING BUSINESS BETHLEHEM STEEL CORP BETHLEHEM STEEL CORP BETHLEHEM PA SAID IT SOLD FIVE MILLION SHARES OF 350 CUMULATIVE PREFERRED STOCK FOR 50 A SHARE THROUGH A PRIVATE PLACEMENT THE STEELMAKER SAID IT WOULD CONTRIBUTE HALF THE NET PROCEEDS OF 242 MILLION TO THE BETHLEHEM PENSION TRUST AN EMPLOYEE PENSION PLAN AND SLATE THE OTHER HALF FOR CAPITAL EXPENDITURES RELATED TO PREVIOUSLY REPORTED MODERNIZATION PLANS AT ITS PENNSYLVANIA STEEL TECHNOLOGIES INC UNIT AND ITS STRUCTURAL PRODUCTS DIVISION EACH SHARE OF PREFERRED WILL BE CONVERTIBLE INTO 2392 SHARES OF BETHLEHEM COMMON AFTER APRIL 13 SALOMON BROTHERS INC AND JP MORGAN SECURITIES INC ARRANGED THE SALE 9303050188 930305 DRESS BARN MONTHLY SALES THE WOMEN'S APPAREL CHAIN ATTRIBUTED THE SALES DECLINE TO POOR WINTER WEATHER THE COMPANY OPERATED 594 STORES AT FEB 20 UP 11 FROM A YEAR EARLIER 9303050187 930305 MASTERCARD'S MARKET SHARE INCREASED TO 271 IN 1992 NEW YORK MASTERCARD INTERNATIONAL INC SAID ITS SHARE OF THE US GENERALPURPOSE CREDITCARD MARKET GREW TO 271 IN 1992 FROM 266 IN 1991 REPRESENTING ITS FIRST GROWTH IN 14 YEARS THE SECONDLARGEST CREDITCARD ASSOCIATION ATTRIBUTED MUCH OF THE GAIN TO CARD ISSUERS AMERICAN TELEPHONE & TELEGRAPH CO AND GENERAL MOTORS CORP WHICH DECIDED TO MARKET HEAVILY THE MASTERCARD BRAND OVER THE VISA BRAND THE MOST POPULAR CREDIT CARD IN THE US IN ADDITION MASTERCARD SAID THE MARKET SHARE GAINS CAME AT THE EXPENSE OF AMERICAN EXPRESS CO'S CARD AND SEARS ROEBUCK & CO'S DISCOVER CARD BOTH OF WHICH HAVE BEEN HURT BY CUSTOMERS DEFECTING TO AT&T'S AND GM'S OFFERINGS AFTER SLIDING FOR MORE THAN A DOZEN YEARS MASTERCARD BEGAN TO REVERSE THE MARKET SHARE DROP WHEN IT ALLOWED AT&T TO LAUNCH ITS CARD PROGRAM UNDER THE MASTERCARD NAME IN 1990 THE SUCCESSFUL LAUNCH HELPED TO STOP THE EROSION IN MASTERCARD'S MARKET SHARE MASTERCARD SAID THE AMOUNT OF DOLLARS CHARGED ON ITS CARD GREW 138 TO 113 BILLION IN 1992 THE NUMBER OF CARDS IN CIRCULATION ROSE 95 TO 99 MILLION 9303050186 930305 CALDOR SALES CLIMB 9 NORWALK CONN CALDOR CORP SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY ROSE 9 TO 128 MILLION WHILE COMPARABLESTORE SALES ROSE 17 THE DISCOUNT RETAILER WHICH OPERATES 136 STORES IN THE NORTHEAST SAID FEBRUARY SALES REFLECT SOME WEATHERRELATED SOFTNESS DUE TO THE EXTREME WINTER WEATHER EXPERIENCED IN OUR MARKET AREAS 9303050185 930305 ANNTAYLOR POSTS GAINS NEW YORK ANNTAYLOR STORES CORP SAID FEBRUARY SALES ROSE 76 TO 302 MILLION FROM 28 MILLION A YEAR EARLIER COMPARABLESTORE SALES WERE UP 31 THE FIGURES EXCLUDE LEASED SHOE DEPARTMENT SALES WHICH TOTALED 645000 A YEAR AGO THE PHASEOUT OF THE LEASED SHOE OPERATION WAS COMPLETED FEB 1 ANNTAYLOR OPERATES 219 STORES IN 38 STATES AND THE DISTRICT OF COLUMBIA 9303050184 930305 DELTA AIR TRAFFIC UP 35 THE CARRIER SAID IT FLEW 556 BILLION REVENUE PASSENGER MILES COMPARED WITH 537 BILLION IN FEBRUARY 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 563 FROM 536 FOR THE FIRST TWO MONTHS OF THE YEAR TRAFFIC WAS UP 45 TO 1151 BILLION REVENUE PASSENGER MILES FROM 1101 BILLION LOAD FACTOR INCREASED TO 55 FROM 533 9303050183 930305 TODAY'S MAN INC POSTS GAINS THE COMPANY OPERATES 16 MENSWEAR SUPERSTORES IN THREE NORTHEASTERN MARKETS 9303050182 930305 UNITED RETAIL POSTS GAINS ROCHELLE PARK NJ UNITED RETAIL GROUP INC SAID FEBRUARY SALES ROSE 27 TO 223 MILLION FROM 176 MILLION THE RETAILER OF LARGESIZE WOMEN'S CLOTHING SAID COMPARABLESTORE SALES WERE UP 1 RAPHAEL BENAROYA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY IS PLANNING A DIFFERENT MERCHANDISE ASSORTMENT FOR ITS THE AVENUE STORES BASED IN MALLS BEGINNING IN THE THIRD QUARTER ITS SIZES UNLIMITED UNIT OPERATES STORES IN RETAIL STRIPS 9303050181 930305 DAIMLER AIDE URGES TRANSATLANTIC FREETRADE ZONE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL GUETERSLOH GERMANY STRESSING THE IMPORTANCE OF A CLOSER POLITICAL AND ECONOMIC PARTNERSHIP BETWEEN THE US AND THE EUROPEAN COMMUNITY DAIMLERBENZ AG'S PRESIDENT CALLED FOR THE CREATION OF A TRANSATLANTIC FREETRADE ZONE THE OFFICIAL EDZARD REUTER STRESSED THAT ESPECIALLY AMID DIFFICULT ECONOMIC TIMES AND MOUNTING INDICATIONS OF PROTECTIONIST TENDENCIES ON BOTH SIDES OF THE ATLANTIC A COMMITMENT TO TRANSATLANTIC COOPERATION WAS THE ESSENTIAL OF THE FUTURE WORLD DEVELOPMENT AND WOULD FOSTER MORE GLOBAL ECONOMIC GROWTH WITHOUT OFFERING SPECIFICS AS TO HOW SUCH A FREETRADE ZONE COULD BE REALIZED MR REUTER OPTIMISTICALLY PROPHESIED THAT IF SUCH A PARTNERSHIP WERE ACHIEVED THEN THE TITS AND TATS OF GENERAL AGREEMENT ON TARIFFS AND TRADE DISPUTES WOULD HAVE AN END DAIMLERBENZ IS GERMANY'S LARGEST INDUSTRIAL GROUP SPEAKING AT A GATHERING OF AMERICAN JOURNALISTS IN GUETERSLOH GERMANY EARLIER THIS WEEK MR REUTER CRITICIZED EXISTING INTERNATIONAL ORGANIZATIONS AS BEING HOLLOW INSTRUMENTS UNABLE TO FORGE TRANSATLANTIC TIES THE COMMITTEE FOR SECURITY AND COOPERATION IN EUROPE HAS BECOME A HUGE ROUNDTABLE WHERE PEOPLE ON ONE SIDE DON'T UNDERSTAND WHAT PEOPLE ON THE OTHER SIDE ARE SAYING HE SAID THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT HAS BECOME AN ORGANIZATION WHOSE ROLE AND PURPOSE NO ONE CAN EXPLAIN ANYMORE AND EVEN THE G7 HAS DEGENERATED TO FRIENDLY GATHERINGS WHERE EACH MEMBER EXPLAINS THAT THEY ARE NOT RESPONSIBLE FOR THE ECONOMIC PROBLEMS IN THE WORLD AS PREREQUISITES FOR ACHIEVING A USEC COOPERATION PACT MR REUTER CITED TWO ELEMENTS THE STRENGTHENING OF EUROPE AS A POLITICAL ENTITY AND CONTINUED INTERNATIONALIZATION OF EUROPEAN CORPORATIONS TRANSATLANTIC COOPERATION CAN ONLY BE POSSIBLE BETWEEN STRONG EQUAL COMPETITIVE PARTNERS MR REUTER SAID HE URGED THAT EUROPE'S POLITICIANS DRIVE QUICKLY TOWARD POLITICAL AND MONETARY UNITY FOR EUROPE HE STRESSED THAT IT WAS THE POLITICAL RATHER THAN THE ECONOMIC WEAKNESS OF THE EC THAT WAS RESPONSIBLE FOR A KIND OF PSYCHOLOGICAL DEPRESSION IN EUROPE THAT DAMPED ECONOMIC ACTIVITY THE POLITICAL INABILITY TO DEAL WITH THE CRISIS IN THE FORMER YUGOSLAVIA AND THE UNCERTAINTY DOGGING THE MAASTRICHT TREATY FOR EUROPEAN UNITY MAKE US UNABLE TO BE A REAL PARTNER TO THE US HE SAID MR REUTER ADVOCATED MONETARY UNION AS A STEP TO KEEP POLITICAL UNION ON TRACK CURRENCY UNION IS A DECISIVE STEP THAT MUST BE ACHIEVED AS QUICKLY AS POSSIBLE IT IS THE KEYSTONE TO MAKE SURE THAT POLITICAL UNION IS NO LONGER REVERSIBLE HE SAID MEANWHILE THE TREND TOWARD MORE TRULY INTERNATIONAL CORPORATIONS COMPANIES NOT JUST WITH SALES ABROAD BUT WITH FOREIGN OPERATIONS HOLDERS AND MANAGING DIRECTORS WOULD COUNTERACT THE DYNAMICS OF OPPOSING REGIONAL TRADE BLOCS HE SAID TRYING TO PUT A POSITIVE SPIN ON THE MIGRATION OF INDUSTRY OUT OF GERMANY TO CHEAPER INDUSTRIAL LOCATIONS HE STRESSED A NEED FOR COMPANIES TO FOLLOW THE MARKETS OF THE FUTURE THAT IS SETTING UP PLANTS IN THE US MEXICO OR ASIA TO SERVE THOSE MARKETS 9303050180 930305 RECOGNITION EQUIPMENT OFFER DALLAS RECOGNITION EQUIPMENT INC SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION A PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE MAKER OF DOCUMENTRECOGNITION SYSTEMS SAID THE PROCEEDS WILL BE USED TO REPAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL PRODUCT DEVELOPMENT AND ACQUISITIONS THE COMPANY DIDN'T PROVIDE AN ESTIMATE ON PROCEEDS FROM THE OFFERING RECOGNITION EQUIPMENT HAD 229 MILLION IN TOTAL BANK DEBT AT THE END OF 1992 AS OF MARCH 31 RECOGNITION EQUIPMENT HAD 121 MILLION COMMON SHARES OUTSTANDING THE OFFERING WILL BE MANAGED BY BEAR STEARNS & CO 9303050179 930305 HENLEY INTERNATIONAL CHANGE SUGAR LAND TEXAS HENLEY INTERNATIONAL INC SAID SHAREHOLDERS APPROVED THE RECOMMENDATION OF DIRECTORS TO CHANGE THE COMPANY'S NAME TO MAXXIM MEDICAL INC EFFECTIVE TODAY THE DIVERSIFIED MEDICAL PRODUCTS CONCERN SAID THE NAME CHANGE IS MEANT TO BRING ATTENTION TO ITS INCREASING VARIETY OF LINES INCLUDING DISPOSABLE SURGICAL ITEMS AND OPERATING ROOM APPAREL 9303050178 930305 THURSDAY'S MARKETS WEAK NEWS ON ECONOMY HURTS STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR STOCK MARKET INDEXES FELL DESPITE ANOTHER STRONG BOND MARKET RALLY THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 513 POINTS TO 339891 STANDARD & POOR'S 500STOCK INDEX DECLINED 192 TO 44734 AND THE NASDAQ COMPOSITE INDEX LOST 319 TO 68073 ANALYSTS SAID STOCK PRICES WERE PRESSURED BY SOME WEAK ECONOMIC NEWS THE COMMERCE DEPARTMENT REPORTED THAT FACTORY ORDERS FELL 13 IN JANUARY THE LARGEST DROP SINCE AUGUST ALSO THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE 26000 IN THE WEEK ENDED FEB 20 ANALYSTS HAD EXPECTED AN INCREASE OF JUST 1000 WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO SAID PLUNGING INTEREST RATES WILL TRANSLATE INTO STRONG GAINS FOR THE STOCK MARKET LOW RATES MAKE STOCK INVESTMENTS INCREASINGLY ATTRACTIVE AND HELP STIMULATE ECONOMIC GROWTH BUT MR REVIS PREDICTED THE STOCK MARKET'S GAINS WILL COME LATER IN THE FIRST HALF LOWER BOND RATES WILL BE A LONGTERM POSITIVE FOR STOCKS HE SAID BUT WE MIGHT HAVE A ROUGH PATCH FOR A COUPLE OF WEEKS BEFORE THE MAJOR INDEXES HIT NEW HIGHS HEALTH CARE STOCKS WERE AMONG THE WORST PERFORMERS YESTERDAY AFTER REP PETE STARK D CALIF MADE NEGATIVE REMARKS ABOUT SOME HEALTH MAINTENANCE ORGANIZATIONS UNITED HEALTHCARE PLUNGED 5 OR 10 TO 45 1/4 OXFORD HEALTH PLANS LOST 3 1/4 OR 83 AND PACIFICARE HEALTH SYSTEMS SLID 3 3/4 OR 97 TO 35 WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 031 TO 9614 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 230780000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 967 ISSUES ROSE AND 931 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16385 MARKS AND 11678 YEN COMPARED WITH 16458 MARKS AND 11665 YEN WEDNESDAY 9303050177 930305 CONSOLIDATED STORES SALES COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE MONTH ENDED SATURDAY TOTALED 552 MILLION UP 38 FROM YEAREARLIER SALES OF 532 MILLION COMPARABLESTORE SALES DECREASED 89 THE COMPANY SAID COMPARABLESTORE SALES ARE THOSE IN STORES OPEN FOR TWO YEARS AT THE BEGINNING OF THE FISCAL YEAR THE COMPANY SAID FEBRUARY 1993 SALES WERE NEGATIVELY AFFECTED BY WINTER STORMS IN MANY OF ITS MARKETS DURING THE LAST TWO WEEKS OF THE MONTH HOWEVER THE RETAILER AND WHOLESALER OF CLOSEOUT MERCHANDISE SAID IT IS COMFORTABLE THAT SALES EXPECTATIONS FOR THE FIRST QUARTER AND LATER QUARTERS WILL BE ATTAINED 9303050176 930305 ISSUES MARKET IN ECU BONDS COMES TO LIFE DEEP SLUMP BROUGHT ON BY DANISH VOTE ENDS AS EC TENSION EASES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR REAL EUROPESSIMISTS THE ECU WILL ALWAYS BE THE CURRENCY OF THE FUTURE LESS CYNICAL SORTS HOWEVER HAVE RECENTLY BEEN WARMING TO BONDS DENOMINATED IN THE MUCHMALIGNED EUROPEAN CURRENCY UNIT AND ARE CONVINCED THEY HAVE GREAT POTENTIAL IF THE EUROPEAN MONETARY SYSTEM CAN MAKE IT THROUGH THE NEXT FEW MONTHS CERTAINLY THE NEWISSUES MARKET IN ECU BONDS IS SHOWING SIGNS OF LIFE AFTER BEING COMATOSE IN THE SECOND HALF OF 1992 THE DEEP SLEEP WAS INDUCED BY DENMARK'S REJECTION OF THE MAASTRICHT TREATY WHICH CALLED INTO QUESTION THE APPARENT INEVITABILITY OF EUROPEAN MONETARY UNION BY THE END OF THE CENTURY NOW WITH DENMARK'S OPINION POLLS PREDICTING A SECOND REFERENDUM ON THE TREATY WILL PASS EASILY ECU MAVENS ARE BREATHING A BIT EASIER THE MARKET HAS SHOWN A LOT OF RESILIENCE SAID JONATHAN DAVIS AN ANALYST AT UBS PHILLIPS & DREW IN LONDON SENTIMENT STILL DEPENDS ON THE TREATY BEING PASSED BY BOTH DENMARK AND THE UK BUT AS LONG AS THERE ARE SIGNS MAASTRICHT IS BACK ON TRACK ECUS WILL BE ATTRACTIVE SINCE THE BEGINNING OF THE YEAR BOTH THE FRENCH AND BRITISH GOVERNMENTS HAVE BROUGHT SIZABLE NEW ECU BORROWINGS TO THE MARKET JOINING FINLAND THE EUROPEAN COMMUNITY AND THE EUROPEAN INVESTMENT BANK THE BOND ISSUES WHICH FOR THE MOST PART WERE PLACED SUCCESSFULLY WITH LONGTERM INVESTORS HAVE RAISED SPIRITS AT THE MOSTLY LONDON AND PARISBASED BANKS THAT INVESTED HEAVILY IN RECENT YEARS TO BUILD BIG ECU MARKETING TEAMS PARTLY TO HELP ESTABLISH PARIS AS THE CENTER OF THE ECU MARKET FRENCH TREASURY OFFICIALS HAVE COMMITTED THEMSELVES TO BORROWING 15 OF THEIR NEEDS THIS YEAR IN EUROPEAN CURRENCY UNITS SINCE DECEMBER PRICES OF ECU BONDS HAVE OUTPERFORMED MARK BONDS BRINGING ECU YIELDS DOWN TO ABOUT ONE PERCENTAGE POINT ABOVE THE GERMAN GOVERNMENT BOND YIELD LAST WEEK FROM 150 PERCENTAGE POINTS ABOVE THE BUNDS THE FRENCH GOVERNMENT'S 8 ECU BONDS DUE IN 2003 NOW YIELD ABOUT 782 WHILE THE GERMAN 7 1/8 BUND DUE IN 2002 YIELDS AROUND 680 BOB TYLEY AN ANALYST AT PARIBAS CAPITAL MARKETS SAYS LOW SHORTTERM INTEREST RATES IN ECUS RELATIVE TO FRENCH FRANCS SPANISH PESETAS AND ITALIAN LIRE ARE HELPING SPUR THE MARKET THREEMONTH ECU RATES ARE ABOUT 950 COMPARED WITH 1175 IN FRANCS MEANING THAT INVESTORS CAN BORROW SHORTTERM ECUS CHEAPLY TO BUY BONDS OR HEDGE CURRENCY RISK STILL MR TYLEY SAID THAT UNEASE PERVADES THE MARKET WITH SOME INVESTORS STILL SMARTING FROM THE PRICE PLUNGES LAST JUNE PEOPLE DON'T WANT TO TAKE EUROPEAN MONETARY UNION ON TRUST ANYMORE HE SAID MOST ARE WAITING TO SEE THAT THE INK IS DRY ON THE TREATY AS IT STANDS NOW ECU BONDS ARE TRADING AT ABOUT THEIR THEORETICAL VALUE THAT IS THE VALUE AT WHICH THE COMPOSITE OF THE BONDS IN CURRENCIES THAT MAKE UP THE ECU ARE TRADING THE ECU CONSISTS OF ABOUT 31 MARKS 20 FRENCH FRANCS 10 UK STERLING AND THE REST OF THE EC'S EIGHT OTHER SEPARATE CURRENCIES BEFORE THE DANES SAID NO TO MAASTRICHT ECU BONDS YIELDED ABOUT 020 PERCENTAGE POINT LESS THAN A BASKET OF ECUCOMPONENT BONDS JEAN LOUIS PEZET AN ECONOMIST AT CREDIT SUISSE FIRST BOSTON SAID THE MARKET WON'T FULLY REGAIN ITS VERVE UNTIL REAL ECU YIELDS ARE SIGNIFICANTLY LOWER THAN THEORETICAL YIELDS BUT WE CAN'T NECESSARILY GO BACK TO WHERE WE WERE BEFORE MR PEZET SAID PEOPLE REALIZE MORE THAT THERE ARE REAL RISKS THAT THE WAY EUROPEAN MONETARY UNION IS CONCEIVED NOW COULD BE ALTERED DRAMATICALLY ONE HURDLE WILL BE THIS MONTH'S FRENCH PARLIAMENTARY ELECTIONS FEW THINK THE OUTCOME WILL HAVE ANY SIGNIFICANT EFFECT ON THE ECU BUT PRICE MOVEMENT COULD BE VOLATILE BECAUSE ECU BONDS ARE SEEN AS SPIRITUALLY LINKED TO FRENCH BONDS THE ECU MARKET MAY BENEFIT FROM THE RISING DISENCHANTMENT WITH GERMANY'S CURRENCY IN HER WEEKLY REPORT SAMUEL MONTAGU & CO'S INTERNATIONAL ECONOMIST ALISON COTTRELL OUTLINED THE CONCERNS THREE MILLION ON THE OFFICIAL UNEMPLOYMENT REGISTER INFLATION RATES UNIMAGINABLE ONLY A YEAR AGO PAINFUL RATIONALIZATION IN STATESUBSIDIZED INDUSTRIES PUBLIC SPENDING REVIEWS CABINET RESIGNATIONS VERGING ON THE FARCICAL POPULAR CONCERN OVER RISING CRIME EXPANDING BUDGET DEFICITS A DISILLUSIONED ELECTORATE AND DISAVOWAL BY THE MONETARY AUTHORITIES OF INTEREST RATES UP TO AND BEYOND THE TIME THAT SUCH CHANGE OCCURS WHICH COUNTRY ARE WE DESCRIBING SHE ASKED MS COTTRELL SAID THE ANSWER COULD LIE ON EITHER SIDE OF THE CHANNEL BUT THIS TIME SHE IS REFERRING TO GERMANY SHE SAID THAT WHILE THE SHORTTERM OUTLOOK FOR GERMAN BONDS IS POSITIVE SUPPLY CONCERNS AND POLITICAL RISKS LOOM LARGE BEYOND A SIXMONTH HORIZON BY WHICH TIME SIMILAR PROBLEMS IN OTHER MAJOR EUROPEAN BOND MARKETS WILL BE AT LEAST FULLY DISCOUNTED AND AT BEST RESOLVED OF COURSE THE SINGLE BIGGEST BOOST TO THE ECU MARKET WOULD BE AN ANNOUNCEMENT BY THE BUNDESBANK THAT IT PLANNED TO ISSUE 15 OR SO OF ITS DEBT NEXT YEAR IN ECUS BUT GIVEN THE GERMAN CENTRAL BANK'S NOTORIOUS WARINESS TOWARD THE ECU THAT IS VASTLY LESS PROBABLE THAN A ONEPERCENTAGEPOINT REDUCTION IN THE DISCOUNT RATE 9303050175 930305 WHO'S NEWS CYPRUS MINERALS CO CYPRUS MINERALS CO ENGLEWOOD COLO ROBIN J HICKSON 49 YEARS OLD FORMER PRESIDENT OF FREEPORT RESEARCH & ENGINEERING CO A SUBSIDIARY OF FREEPORTMCMORAN INC WAS NAMED SENIOR VICE PRESIDENT OF CYPRUS COPPER CO AN OPERATING UNIT OF THIS MINING COMPANY 9303050174 930305 REVIEW & OUTLOOK EDITORIAL BEIJING'S SPRING CLEANING ALL OVER BEIJING BILLBOARDS THAT USED TO BLARE THE GLORIES OF THE DICTATORSHIP OF THE PROLETARIAT NOW PROCLAIM A MORE OPEN CHINA AWAITS THE 2000 OLYMPICS THE OBJECTS OF A MORE OPEN CHINA'S AFFECTIONS ARE TWO VISITING DELEGATIONS ONE ARRIVES TOMORROW TO EXPLORE WHETHER CHINA SHOULD BE AWARDED THE 2000 OLYMPIC GAMES AND A GATT DELEGATION IS IN TOWN NOW TO DISCUSS WHETHER CHINA SHOULD BE ALLOWED TO JOIN THE TRADE GROUP AND SO BEIJING IS BEING SPRUCED UP WITH ANTILITTERING CAMPAIGNS AND THE RELEASE OF A COUPLE OF FAMOUS POLITICAL PRISONERS THERE HAS EVEN BEEN TALK OF CLEANING THE CITY'S REEKING PUBLIC TOILETS LADY MACBETH OF COURSE SUGGESTED HOW DIFFICULT IT IS TO WIPE AWAY THE STAIN OF A VIOLENT POLITICS THOUGH IT IS APPROPRIATE TO NOTE THAT SHE QUICKLY BOASTED WHAT NEED WE FEAR WHO KNOWS IT WHEN NONE CAN CALL OUR POWER TO ACCOUNT THE FACT REMAINS THAT DESPITE THE WELCOME MAT FOR FAVORED GUESTS BENEATH THE SURFACE AMIABILITY BEIJING RETAINS MANY OF THE CONTROL MECHANISMS THAT HAVE MARKED COMMUNIST RULE SINCE 1949 WITHOUT THESE TOOLS OF REPRESSION IT IS OPEN TO QUESTION WHETHER THE WIDELY LOATHED COMMUNIST PARTY COULD STAY IN POWER BUT THAT IS A QUESTION THAT CHINA'S RULERS LIKE LADY MACBETH WON'T PRESENT FOR AN ACCOUNTING ITEM THE EIGHTH NATIONAL PEOPLE'S CONGRESS WHICH OPENS IN BEIJING MARCH 20 WILL NOT ALLOW DISCUSSION OF REVISING THE CONSTITUTION TO ALLOW FOR POLITICAL LIBERALIZATION ITEM THE PUEBLA INSTITUTE A WASHINGTONBASED RELIGIOUSRIGHTS MONITORING GROUP SAYS THAT AT LEAST FOUR CHRISTIANS HAVE BEEN TORTURED TO DEATH SINCE 1989 THE GOVERNMENT DID RELEASE 76YEAROLD BISHOP YANG LIBO IN FEBRUARY BUT DOZENS MORE RELIGIOUS LEADERS AND PRACTITIONERS REMAIN IN JAIL FOR EXERCISING THE FREEDOM OF RELIGION THE CHINESE CONSTITUTION EXPLICITLY GUARANTEES ITEM THERE HAS BEEN NO LETUP IN THE ATTEMPT TO DESTROY HONG KONG GOVERNOR CHRIS PATTEN'S MODEST PROPOSALS FOR A BIT MORE POPULAR SAY IN HONG KONG GOVERNMENT ITEM THOUSANDS OF DEMOCRACY ACTIVISTS ARRESTED AFTER THE 1989 DEMOCRACY MOVEMENT REMAIN IN PRISON SO DO DISSIDENTS FROM THE 1979 DEMOCRACY WALL MOVEMENT INCLUDING THE ELOQUENT WEI JINGSHENG RELEASING A FEW FAMOUS PEOPLE LIKE WANG DAN AND GUO HAIFENG IS FINE FOR THE INDIVIDUALS INVOLVED IT DOES NOT HOWEVER MEAN THAT THE LEGAL SYSTEM THAT PACKS PEOPLE OFF TO JAIL FOR THE PEACEFUL EXPRESSION OF OPINION IS CHANGING AND IT CERTAINLY DOES NOT MEAN THAT THE AVERAGE WONG STUCK IN A GANSU LABOR CAMP CAN EXPECT THE SAME TREATMENT ITEM THE LAOGAI CHINA'S UNIQUE SYSTEM OF BOOSTING EXPORTS THROUGH SLAVE LABOR STILL FUNCTIONS OTHER EXPORT CONCERNS ARE RUN BY AND FOR THE PEOPLE'S LIBERATION ARMY ITEM THE NEW COMMUNIST PARTY LEADER OF TIBET ACCORDING TO A SMUGGLED DOCUMENT WANTS TO PURGE OFFICIALS WHO ARE NOT SUFFICIENTLY AGAINST THE DALAI LAMA CHINA WILL CONTINUE TO OFFER THE FREE WORLD TOUGH CHOICES ECONOMIC GROWTH NO DOUBT WILL MODERNIZE THE CHINESE IN SOME SENSE AND IT'S PROBABLY HOPELESS TO EXPECT THE AVERAGE WESTERN BUSINESSMAN TO MAKE MUCH EFFORT AT DISTINGUISHING BETWEEN THE SLAVES AND THE WAGE EARNERS THAT DOESN'T MEAN HOWEVER THAT THE FREE WORLD'S LEADERSHIP HAS TO SET AN ABSURDLY CHEAP PRICE ON FULL MEMBERSHIP IN THE COMMUNITY OF NATIONS SOUTH KOREA GOT THE OLYMPICS ONLY AFTER EXTRAORDINARY EFFORTS TO ESTABLISH ITS DEMOCRATIC BONA FIDES AND GATT MEMBERSHIP PRESUPPOSES A COMMITMENT TO AN OPEN SYSTEM OF TRADE IN TURN THE BEDROCK OF THAT SYSTEM IS A COMMON SET OF VALUES AFFECTING SUCH MATTERS AS GOODFAITH CONTRACTS KEEPING ONE'S WORD FREEDOM OF MOVEMENT FOR GOODS AND THE FREE FLOW OF INFORMATION THAT FOSTERS NEW KNOWLEDGE AND COMMERCE CHINA WANTS A LOT FROM THE FREE WORLD THAT WORLD IN TURN SHOULD REMIND CHINA THAT ONE OF THE CARDINAL RULES OF GATT IS RECIPROCITY 9303050173 930305 HILO AUTOMOTIVE SALES HOUSTON HILO AUTOMOTIVE INC SAID SAMESTORE SALES IN A COMPARABLE 28DAY PERIOD OF FEBRUARY ROSE 49 TOTAL SALES FOR THE MONTH WHICH HAD 29 DAYS IN 1992 WERE UP 84 TO 142 MILLION FROM 131 MILLION 9303050172 930305 TECHNOLOGY & HEALTH FDA SEEKS BETTER CLINICAL TRIALS OF MEDICAL DEVICES BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FOOD AND DRUG ADMINISTRATION REPORT CALLS FOR TIGHTER SCIENTIFIC CONTROLS ON CLINICAL TRIALS RUN BY MEDICALDEVICE PRODUCERS THE REPORT BY THE AGENCY'S COMMITTEE FOR CLINICAL REVIEW ALSO RECOMMENDS CLOSER COOPERATION BETWEEN PRODUCERS AND FDA OFFICIALS IN DESIGNING THE TRIALS THE FDA GENERALLY REQUIRES CLINICAL TRIALS FOR ABOUT 10 OF THE DEVICE APPLICATIONS IT RECEIVES INCLUDING DEVICES THAT ARE DESIGNED TO BE IMPLANTED OR ARE LIFESUPPORTING THE TRIALS ARE SUPPOSED TO DEMONSTRATE THE DEVICES' SAFETY AND EFFICACY THE COMMITTEE CONSISTING LARGELY OF PHYSICIANS FROM THE AGENCY'S CENTER FOR DRUG EVALUATION AND RESEARCH WAS FORMED IN APRIL 1992 BESIDES SUGGESTING SPECIFIC IMPROVEMENTS THE STUDY HELPS ANSWER CRITICISM THAT THE AGENCY HAS MOVED TOO SLOWLY IN APPROVING THE FLOOD OF DEVICES FOR WHICH IT HAS RECEIVED APPLICATIONS IN RECENT YEARS THE REPORT SAYS THAT CERTAIN PATTERNS OF DEFICIENCIES IN MANUFACTURERS' DESIGN CONDUCT AND ANALYSIS OF CLINICAL TRIALS HAVE HAMPERED THE FDA'S ABILITY TO MAKE JUDGMENTS ABOUT THE SAFETY AND EFFECTIVENESS OF THE DEVICES THE BIGGEST IMPEDIMENT TO GETTING A DEVICE ONTO THE MARKET IS THE FAILURE TO HAVE THE DATA THAT REALLY SHOWS THAT IT'S SAFE AND EFFICACIOUS SAID FDA COMMISSIONER DAVID KESSLER OUR EXPERIENCE WITH HEART VALVES BREAST IMPLANTS AND INTRAUTERINE DEVICES HAVE POINTED UP SIGNIFICANT QUESTIONS ABOUT THE EVALUATION OF MEDICAL DEVICES THAT THE FDA AND INDUSTRY HAVE TO ADDRESS AMONG OTHER PROBLEMS THE COMMITTEE FOUND THAT THE TRIALS FAILED TO USE APPROPRIATE CONTROL GROUPS USED INADEQUATE NUMBERS OF PATIENTS AND DIDN'T HAVE WELLDEFINED MEASURES OF SUCCESS OR FAILURE BESIDES SLOWING DOWN THE REVIEWS POORLY DESIGNED APPLICATIONS CAN REQUIRE THE FDA TO SPEND TREMENDOUS RESOURCES BRINGING AN APPLICATION TO AN APPROVABLE STATE ACCORDING TO THE STUDY SOMETIMES EVEN SUCH EFFORTS CAN BE INSUFFICIENT THE REPORT SAID CITING CASES WHERE IT WAS IMPOSSIBLE TO DETERMINE WHETHER DEVICES WERE AS EFFECTIVE OR SAFE AS ALREADY AVAILABLE THERAPIES THE COMMITTEE RECOMMENDED THAT THE FDA DEVELOP GUIDANCE FOR THE MEDICALDEVICE INDUSTRY ON DESIGNING AND ANALYZING STUDIES AND ON THE CONTENT AND FORMAT OF SUBMISSIONS TO THE AGENCY IT ALSO CALLED FOR THE AGENCY TO BETTER INTEGRATE BIOSTATISTICIANS INTO ITS REVIEW PROCESS AND TO USE ITS ADVISORY COMMITTEES TO HELP IMPROVE THE QUALITY OF DATA SUBMITTED WITH DEVICE APPLICATIONS 9303050171 930305 CUMBERLAND'S OTS PACT ENDS LOUISVILLE KY CUMBERLAND FEDERAL SAVINGS BANK A UNIT OF CUMBERLAND FEDERAL BANCORP SAID IT WAS RELEASED FROM A 1991 OPERATING AGREEMENT WITH THE OFFICE OF THRIFT SUPERVISION THAT REQUIRED HIGHER CAPITAL RATIOS THAN ARE REQUIRED FOR THRIFTS IN GENERAL CUMBERLAND SAID ITS TANGIBLE CAPITAL RATIO AT JAN 30 WAS 6 WELL ABOVE THE 5 REQUIRED BY THE OPERATING AGREEMENT THE THRIFT WHICH HAS ASSETS OF 12 BILLION SAID THE END OF THE INTENSIFIED SUPERVISION SHOULD MAKE IT EASIER TO ENTER NEW LINES OF BUSINESS ALTHOUGH P NORRIS SHOCKLEY JR CHIEF FINANCIAL OFFICER SAID ANY NEW LINES WON'T BE RADICALLY DIFFERENT FROM ITS EXISTING REAL ESTATE AND CONSUMER LENDING BUSINESS 9303050170 930305 VALUE CITY STORES SALES COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID COMPARABLESTORE SALES DURING THE FOUR WEEKS ENDED FEB 20 FELL 68 FROM YEAREARLIER FIGURES THE OFFPRICE RETAILER SAID TOTAL SALES DURING THE PERIOD WERE 43 MILLION DOWN 45 FROM A YEAR EARLIER THE COMPANY ATTRIBUTED THE DECLINE TO POOR WEATHER ALONG WITH STRONG SALES DURING FEBRUARY 1992 WHEN COMPARABLESTORE SALES ROSE 15 FIGURES FOR 1992 ARE ADJUSTED FOR THE SEPTEMBER 1992 ACQUISITION OF GEE BEE STORES INC 9303050169 930305 PIER 1 IMPORTS FEBRUARY SALES FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SAMESTORE SALES IN THE FOUR WEEKS ENDED FEB 27 WERE ESSENTIALLY FLAT WITH THE COMPARABLE PERIOD OF 1992 FOR THE FISCAL FOURTH QUARTER SALES IN STORES OPEN MORE THAN ONE YEAR ROSE 67 PIER 1 SAID TOTAL SALES FOR FEBRUARY GREW 25 TO 377 MILLION FROM 367 MILLION LAST YEAR FOR THE QUARTER ENDED FEB 27 THE SPECIALTY RETAILER SAID SALES INCREASED 112 TO 1658 MILLION FROM 1491 MILLION A YEAR EARLIER SALES FOR THE FISCAL YEAR ENDED FEB 27 WERE 6292 MILLION 73 HIGHER THAN THE PREVIOUS YEAR'S 5867 MILLION COMPARABLE STORE SALES ROSE 37 9303050168 930305 HUNGARY'S PLANS FOR PRIVATIZATION MAKE HEADWAY BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST HUNGARY THIS WEEK CHOSE SCHRODERS PLC AS LEAD ADVISER TO SPEED ITS PRIVATIZATION PROCESS BY BOOSTING DOMESTIC PARTICIPATION THE HUNGARIAN AGENCY'S SELECTION OF THE LONDONBASED INVESTMENT BANK SIGNALS THE GOVERNMENT'S DETERMINATION TO PROCEED WITH A PROGRAM INVOLVING SOME FORM OF ASSISTANCE TO DISTRIBUTE STATE ASSETS DESPITE CRITICISM FROM BANKERS AND FORMER FINANCE MINISTER MIHALY KUPA MR KUPA WAS FORCED TO RESIGN LAST MONTH AFTER HE OPPOSED ATTEMPTS TO IMPLEMENT A CZECH OR RUSSIANSTYLE VOUCHER SYSTEM HE WAS AGAINST THE PLAN BECAUSE HE BELIEVED IT MIGHT FUEL INFLATION AND ADD TO HUNGARY'S BLOATED STATE BUDGET DEFICIT ORIGINALLY THE GOVERNMENT HAD VOWED TO LET MARKET FORCES PREVAIL IN THE PRIVATIZATION PROCESS IT REJECTED ANY ATTEMPTS TO DIRECT THE DISPERSION OF STATE ASSETS BY FINANCING SALES BUT NOW WITH AN ELECTION LOOMING ONE YEAR AWAY PRIME MINISTER JOZSEF ANTALL IS MAKING AN ABRUPT ABOUT FACE AND IS ANXIOUS TO JUMPSTART THE CREATION OF AN ENTREPRENEURIAL MIDDLE CLASS PRIVATIZATION SO FAR DOMINATED BY FOREIGNERS IS ALSO SHOWING SIGNS OF FATIGUE AFTER A ROBUST START DOMESTIC INVESTORS LARGELY HAVE STAYED AWAY FROM BUYING STATE COMPANIES OR SHARES ON THE BUDAPEST STOCK EXCHANGE THE VALUE OF STATE ASSETS IS DIMINISHING BUT AT THE SAME TIME THE DEMAND FOR THE ASSETS ON OFFER IS LIMITED SAID THE STATE PROPERTY AGENCY MANAGING DIRECTOR LAJOS CSEPE FOREIGN INTEREST IS BECOMING FRAGMENTED BECAUSE THERE ARE SEVEN NEW COUNTRIES FOR THEM TO CONSIDER AND DOMESTIC HUNGARIAN INVESTORS MOVE SLOWLY BECAUSE OF INFLATION MR CSEPE SAID THAT'S WHY WE HAVE INVITED FOREIGN EXPERTS TO FIND NEW TECHNIQUES TO ACCELERATE PRIVATIZATION AND LOCAL OWNERSHIP HE EMPHASIZED THAT THIS WAS A FURTHER STEP IN THE PRIVATIZATION PROCESS BUILDING ON EARLY SUCCESSES RATHER THAN AN ADMISSION OF FAILURE SEVERAL HUNDRED STATE COMPANIES WOULD BE INVOLVED IN THE PROGRAM'S FIRST TRANCHE HE SAID THESE INCLUDE STATE COMPANIES SLATED FOR FUTURE PRIVATIZATION IT ALSO INCLUDES THOSE CONCERNS IN WHICH THE GOVERNMENT IS KEEPING A MAJORITY STAKE SUCH AS ENERGY TELECOMMUNICATION AND TRANSPORTATION COMPANIES AND WHICH ALREADY HAVE SOLD SOME SHARES TO FOREIGNERS IN A MOVE TO APPEASE FOREIGN INVESTORS' FEARS MR CSEPE SAID COMPANIES THAT ALREADY HOLD MINORITY STAKES AND PREPURCHASE RIGHTS FOR MORE SHARES IN THESE STATE COMPANIES WILL BE CONSULTED BEFORE ANY ACTION IS TAKEN JERRY GRIMSTONE DIRECTOR OF SCHRODERS'S WORLDWIDE PRIVATIZATION ADVISORY UNIT SAID HE HOPED TO HAVE A PRELIMINARY VERSION OF THE HUNGARIAN PLAN READY BY THE END OF MARCH THE MAIN ELEMENTS OF HUNGARY'S PLAN ARE LIKELY TO INCLUDE INCENTIVES FOR SMALL INVESTORS SUCH AS ACCESS TO EASY CREDIT THROUGH A CENTRALIZED CREDIT ACCOUNT AND PREFERENTIAL CALL OPTIONS ON THE BUDAPEST STOCK EXCHANGE I DON'T WANT TO USE TERMS LIKE VOUCHERS OR CREDIT COUPONS YET BECAUSE WE WANT TO EVOLVE A SPECIFICALLY HUNGARIAN SYSTEM TO ENCOURAGE PEOPLE TO INVEST MR GRIMSTONE SAID HE ADDED THAT THE PROGRAM WOULDN'T BE AN ALTERNATIVE TO FOREIGN INVESTMENT BUT WOULD COMPLEMENT IT 9303050167 930305 TANDY REGISTERS GAINS FORT WORTH TEXAS TANDY CORP SAID SAMESTORE US SALES FOR A COMPARABLE FOURWEEK PERIOD OF FEBRUARY ROSE JUST 1 THE CONSUMER ELECTRONICS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 5 TO 2444 MILLION FROM 2323 MILLION 9303050166 930305 MEDCO RESEARCH TO RELOCATE LOS ANGELES MEDCO RESEARCH INC A DEVELOPER OF THERAPEUTIC DRUGS SAID IT PLANS TO MOVE THE COMPANY TO RESEARCH TRIANGLE PARK NC FROM LOS ANGELES ARCHIE W PRESTAYKO PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MEDCO HAS FOUND IT HARD TO RECRUIT NEW PERSONNEL TO LOS ANGELES AND THAT COST SAVINGS ARE EXPECTED WITH THE MOVE TO NORTH CAROLINA HE SAID THE MOVE WILL BE COMPLETED BY THE END OF THE YEAR WITH MOST OF THE MOVE BEING MADE OVER THE SUMMER THE COMPANY HAS 20 EMPLOYEES IN THE YEAR ENDED AUG 31 MEDCO HAD NET INCOME OF 395500 OR FOUR CENTS A SHARE ON REVENUE OF 61 MILLION 9303050165 930305 MULTINATIONALS VIE FOR A PIECE OF ITALIAN FIRM A FIVE MONTH CONTEST PITS AT&T AGAINST SIEMENS ALCATEL FOR ITALTEL STAKE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU THINK ITALIAN POLITICS ARE COMPLICATED THESE DAYS TRY FATHOMING THE CURRENT INTERNATIONAL INTRIGUES OVER ITALTEL SPA ITALY'S STATECONTROLLED TELECOMMUNICATIONS EQUIPMENT MAKER FOR THE PAST FIVE MONTHS THE MANAGEMENT OF ITALTEL AND ITS GOVERNMENT OVERSEERS HAVE BEEN RUNNING A CONTEST AMONG THE WORLD'S BIGGEST TELECOMMUNICATIONS COMPANIES TO PICK THE BEST POSSIBLE INTERNATIONAL PARTNER TO HELP ITALTEL EXPAND ABROAD THE CONTEST PITS AMERICAN TELEPHONE & TELEGRAPH CO AGAINST SIEMENS AG OF GERMANY AND FRANCE'S ALCATEL NV AMONG OTHERS AT STAKE FOR ALL THE SPARRING MULTINATIONALS IS ACCESS TO ONE OF THE BIGGEST AND FASTESTGROWING TELECOMMUNICATIONS MARKETS IN EUROPE ITALTEL 80 OWNED BY STET SOCIETA FINANZARIA TELEFONICA SPA WHICH IS IN TURN 53OWNED BY ITALY'S HUGE STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE DOMINATES THE ITALIAN MARKET FOR TELECOMMUNICATIONS EQUIPMENT NEXT WEEK ANALYSTS EXPECT IT TO ANNOUNCE ITS 1992 FINANCIAL RESULTS WITH NET INCOME OF ABOUT 128 BILLION LIRE 817 MILLION ON SALES OF ABOUT THREE TRILLION LIRE BUT FOR AT&T IN PARTICULAR THE STAKES IN THIS CONTEST ARE HUGE IN 1989 IT WON A SIMILAR GOVERNMENTMANAGED CONTEST TO BE ITALTEL'S INTERNATIONAL PARTNER TO CEMENT THE RELATIONSHIP IT SWAPPED A 20 STAKE IN A DUTCH SUBSIDIARY FOR A 20 STAKE IN ITALTEL THEN LAST AUTUMN THE ITALIAN PRESS STARTED REPORTING PROBLEMS IN THE AT&TITALTEL MARRIAGE FOLLOWED SOON AFTER BY AN ITALTEL STATEMENT THAT IT WANTS MORE THAN AT&T HAD BEEN GIVING WHILE THE TWO COMPANIES HAVE ADAPTED AT&T PRODUCTS TO THE ITALIAN MARKET AND WORKED TOGETHER ON OTHER DOMESTIC ITALIAN PROJECTS ACCORDING TO THE STATEMENT BY ITALTEL PRESIDENT SALVATORE RANDI NOW WE NEED AN INTERNATIONAL PARTNER FOR A GLOBAL RELATIONSHIP MAYBE THAT'S AT&T BUT IT COULD BE THAT IT'S ANOTHER BIG MULTINATIONAL THE CONTEST HAS BEGUN AND WITH NEARLY ALL THE SAME MULTINATIONALS THAT SLUGGED IT OUT IN 1989 A SIEMENS SPOKESMAN SAYS HIS COMPANY IN JANUARY SUBMITTED A BID TO BECOME AN ITALTEL PARTNER AND SHOWED OUR INTEREST IN GAINING SOME ITALTEL SHARES AN ALCATEL SPOKESMAN SAYS HIS COMPANY HAS HAD CONTACTS WITH ITALTEL BUT DECLINES TO COMMENT ON STET AND ITALTEL OFFICIALS' REPORTS THAT IT ALSO BID BO LANDIN SENIOR VICE PRESIDENT OF SWEDEN'S TELEFONAB LM ERICSSON SAYS HIS OWN COMPANY HASN'T SUBMITTED A FORMAL BID BUT HAS INDICATED OUR INTEREST TO HAVE A DISCUSSION WITH STET ABOUT A POSSIBLE COOPERATION WITH ITALTEL AT&T SUDDENLY FINDING ITSELF COMPETING ALL OVER AGAIN FOR A BATTLE IT THOUGHT IT WON IN 1989 DECLINES TO COMMENT ON ITS OWN NEW PROPOSAL TO STET THOUGH A SPOKESWOMAN SAYS AT&T AND ITALTEL EXECUTIVES HAVE HAD MEETINGS SCHEDULED FOR THIS WEEK TO DISCUSS THE ALLIANCE AN AT&T SPOKESMAN SAYS THE STETITALTELAT&T RELATIONSHIP IS STRONG AND IT'S VERY IMPORTANT TO US OUR INTENTION IS TO CONTINUE TO BUILD ON IT AND WE CERTAINLY HOPE IT WILL LAST FOR MANY YEARS TO COME ASIDE FROM EXPANDING ITALTEL'S EXPORTS WHICH THE COMPANY AIMS TO TRIPLE IN FOUR YEARS FROM ABOUT 200 BILLION LIRE LAST YEAR ANALYSTS NOTE THAT THE NEW CONTEST MAY HELP ITALTEL'S PARENT STET RAISE SOME BADLY NEEDED CASH STET NOTES ANALYST PAUL DIONNE OF MILANBASED PASFIN SECURITIES IS ALREADY HEAVILY INDEBTED AND IT OR ONE OF ITS AFFILIATES ARE EXPECTED THIS YEAR TO ACQUIRE IRITEL ITALY'S LONGDISTANCE TELEPHONE COMPANY AS PART OF A PLANNED REORGANIZATION OF ITALY'S STATE TELECOMMUNICATIONS SECTOR SELLING AN EXTRA 20 STAKE IN ITALTEL TO A HUNGRY MULTINATIONAL WOULD RAISE AT LEAST 500 BILLION LIRE FOR STET MR DIONNE SAYS THOUGH STILL SPECULATIVE THE PROSPECT OF THAT CASH AND A STRONGER INTERNATIONAL PARTNERSHIP PLUS TALK OF THE STATE TELECOMMUNICATIONS REORGANIZATION HAS MORE THAN DOUBLED STET'S STOCK PRICE IN MILAN OVER THE PAST FOUR MONTHS TO 2390 LIRE YESTERDAY THE AFFAIR HAS NEARLY ALL THE PARTICIPANTS SCRATCHING THEIR HEADS IN BEWILDERMENT EVEN AS AN ITALIAN IT'S REALLY HARD TO UNDERSTAND IT SAYS ONE ITALIAN OFFICIAL WHO LIKE NEARLY EVERYBODY INVOLVED IN THESE MANEUVERINGS DOESN'T WANT TO BE QUOTED BUT THE MULTINATIONALS ARE PATIENT THE TUSSLE FOR ITALTEL IS A NATURAL STEP IN THE RESTRUCTURING OF THE EUROPEAN TELECOMMUNICATIONS INDUSTRY SAYS ERICSSON'S MR LANDIN FOR HIS COMPANY AND ITS RIVALS EVERYBODY IS OUT THERE TO STRENGTHEN THEIR POSITION IN EUROPE 9303050164 930305 NOLAND CO SALES ARE DOWN NEWPORT NEWS VA NOLAND CO REPORTED A 13 DECLINE IN FEBRUARY SALES AND A 99 DROP IN SALES FOR THE YEAR TO DATE CITING A CONSTRUCTION SLOWDOWN BROUGHT ON BY THE WINTER'S BAD WEATHER FEBRUARY SALES FOR THE DISTRIBUTOR OF PLUMBING HEATING AND OTHER BUILDING SYSTEMS FELL TO 294 MILLION FROM THE YEAREARLIER 298 MILLION FOR THE FIRST TWO MONTHS SALES WERE 556 MILLION COMPARED WITH 617 MILLION A YEAR AGO 9303050163 930305 SUNAMERICA INC'S SALE OF DEPOSITARY SHARES EARNS 1561 MILLION LOS ANGELES SUNAMERICA INC SAID IT SOLD 435 MILLION DEPOSITARY SHARES RESULTING IN NET PROCEEDS OF 1561 MILLION TO THE INSURANCE AND FINANCIAL SERVICES CONCERN THE DEPOSITARY SHARES SOLD AT 37 EACH REPRESENT ONEFIFTIETH OF A SHARE OF SUNAMERICA'S SERIES D PREFERRED STOCK UNDER A MANDATORY CONVERSION FEATURE EACH DEPOSITARY SHARE WILL AUTOMATICALLY CONVERT ON MARCH 1 1996 TO ONE SHARE OF SUNAMERICA COMMON STOCK PLUS CASH FOR ACCRUED DIVIDENDS THE DEPOSITARY SHARES ARE CALLABLE BY SUNAMERICA AND PAYABLE IN THE COMPANY'S COMMON STOCK INITIALLY WITH SHARES VALUED AT 5745 AND DECLINING TO 4995 ON THE MANDATORY CONVERSION DATE SUNAMERICA SAID PROCEEDS OF THE OFFERING WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE ACQUISITION OF LIFE INSURANCE BUSINESS OR OTHER ASSETS HOWEVER THE COMPANY CURRENTLY DOESN'T HAVE A PLAN FOR ANY SPECIFIC ACQUISITION THE OFFERING WAS MADE THROUGH AN UNDERWRITING GROUP LED BY MERRILL LYNCH & CO THE GROUP RETAINS A 30DAY OPTION TO BUY UP TO 652500 MORE DEPOSITARY SHARES 9303050162 930305 CANADIAN STEEL OUTPUT IS DOWN OTTAWA CANADIAN STEEL PRODUCTION TOTALED 281443 METRIC TONS IN THE WEEK ENDED SATURDAY A 06 DECLINE FROM 283104 TONS THE PREVIOUS WEEK AND A 11 DECLINE FROM 284636 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 2229954 TONS A 51 INCREASE FROM 2122672 TONS A YEAR EARLIER 9303050161 930305 MEXICO SECURITIES FIRM FORMS NEW YORK UNIT FOR GLOBAL OPERATIONS NEW YORK MEXICAN SECURITIES FIRM INTERACCIONES CASA DE BOLSA SAID IT FORMED AN INVESTMENT BANKING AND BROKERAGE UNIT IN NEW YORK TO EXPAND ITS INTERNATIONAL SECURITIES OPERATIONS LEE H KIMMELL A FORMER SALOMON BROTHERS INC EXECUTIVE AND DIRECTOR WILL BE CHIEF EXECUTIVE OF THE NEW UNIT INTERACCIONES GLOBAL INC MR KIMMELL LEFT SALOMON AS HEAD OF ITS MERCHANT BANKING DEPARTMENT IN 1989 ONLY FOUR MONTHS AFTER HE WAS PROMOTED TO BOLSTER THE OPERATIONS AT SALOMON HE WAS KNOWN FOR BOTH HIS ABILITY TO ATTRACT NEW BUSINESS AND HIS HARDDRIVING STYLE MR KIMMELL SAID IN AN INTERVIEW THAT HE EXPECTS INTERACCIONES TO REMAIN HEAVILY INVOLVED IN FINANCING THE PRIVATIZATION OF MEXICO'S HIGHWAYS PORTS AND AIRPORTS INTERACCIONES IS OWNED BY GRUPO FINANCIERO INTERACCIONES SA A MEXICAN FINANCIAL HOLDING COMPANY 9303050160 930305 HILTON LAYS OFF 900 CITING CLOSING OF TRADE CENTER NEW YORK HILTON INTERNATIONAL CO YESTERDAY LAID OFF ABOUT 900 EMPLOYEES OF THE VISTA INTERNATIONAL HOTEL AND WINDOWS ON THE WORLD RESTAURANT UNTIL THE WORLD TRADE CENTER REOPENS CITY AND STATE LABOR OFFICIALS SAID THE LAYOFFS WERE THE FIRST TO RESULT FROM LAST WEEK'S BOMBING A NUMBER OF THE BUSINESSES THAT HAVE RELOCATED SAID YESTERDAY THAT THEY HAD NO PLANS FOR ANY LAYOFFS WHILE OTHER BUSINESSES CAN RELOCATE IT'S QUITE OBVIOUS WE CAN'T SAID JEANCLAUDE NOEL HILTON'S SENIOR VICE PRESIDENT HILTON INTERNATIONAL IS UNDER CONTRACT TO MANAGE THE HOTEL AND RESTAURANT FOR THE PORT AUTHORITY WHICH OWNS THEM LESS THAN 50 EMPLOYEES HAVE BEEN RETAINED LAIDOFF EMPLOYEES WILL BE PAID THROUGH NEXT SUNDAY AND RETAIN INSURANCE COVERAGE THROUGH THE END OF THE MONTH THE PORT AUTHORITY HAS SAID THAT THE OFFICE TOWER THAT IS HOME TO THE RESTAURANT WILL BE CLOSED FOR AT LEAST ONE MONTH IT HAS NOT ESTIMATED WHEN THE HOTEL WHICH SITS CLOSER TO THE BLAST SITE WILL REOPEN THIS IS THE ONLY REPORT OF LAYOFFS WE'VE HEARD SAID MICHAEL SCHLEIN AN OFFICIAL WITH THE CITY'S ECONOMIC DEVELOPMENT ARM 9303050159 930305 DOMESTIC CAR MAKERS EXPECT 136 INCREASE IN OUTPUT THIS WEEK DETROIT THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 213520 CARS AND TRUCKS THIS WEEK UP 136 FROM THE 188018 VEHICLES BUILT IN THE SAME PERIOD A YEAR AGO GENERAL MOTORS CORP SAID IT IS EXTENDING THE SHUTDOWN AT ITS ASSEMBLY PLANT IN YPSILANTI MICH FOR AN ADDITIONAL WEEK BECAUSE OF SLOW SALES OF THE CARS BUILT AT THAT PLANT SEPARATELY GM SAID IT HAS SCHEDULED OVERTIME NEXT WEEK AT ITS SATURN ASSEMBLY PLANT IN SPRING HILL TENN AND AT EIGHT OF ITS TRUCK ASSEMBLY PLANTS CHRYSLER CORP SAID IT HAS SCHEDULED OVERTIME TOMORROW AT ITS ASSEMBLY PLANTS IN BRAMALEA AND WINDSOR ONTARIO DETROIT AND WARREN MICH BELVEDERE ILL AND ST LOUIS WITH THE BELVEDERE DETROIT AND WARREN PLANTS ALSO SLATED FOR DAILY OVERTIME NEXT WEEK FORD MOTOR CO'S HERMOSILLA MEXICO PLANT WHICH ASSEMBLES SOME TRACERS AND ESCORTS IS ON STRIKE OVER WAGES A MEETING OF MANAGEMENT AND LABOR REPRESENTATIVES WAS SCHEDULED FOR TODAY AND WORK COULD RESUME AS EARLY AS MONDAY SEPARATELY FORD SAYS IT HAS SCHEDULED OVERTIME NEXT WEEK AT CAR ASSEMBLY PLANTS IN ATLANTA ST LOUIS CHICAGO LORRAIN OHIO WIXOM MICH LOUISVILLE KY AND AT FOUR TRUCK PLANTS 9303050158 930305 HECHINGER CO SALES LANDOVER MD HECHINGER CO SAID SAMESTORE SALES FOR FEBRUARY DROPPED 6 AS COLD AND WET WEATHER HURT SALES AT ITS HOMEIMPROVEMENT SPECIALTY RETAIL STORES SAMESTORE SALES OR SALES AT STORES OPEN MORE THAN ONE YEAR FELL 4 AT THE COMPANY'S HECHINGER STORE UNIT AND 10 AT ITS HOME QUARTERS WAREHOUSE DIVISION FOR FEBRUARY TOTAL STORE SALES INCREASED 8 TO 114 MILLION FROM 1051 MILLION THE COMPANY ALSO SAID IT OPENED THREE HECHINGER HOME PROJECT CENTERS AND BROKE GROUND ON THREE HOME QUARTERS WAREHOUSE STORES IN FEBRUARY 9303050157 930305 DOLLAR GENERAL EXPECTS NET TO RISE IN FISCAL 4TH PERIOD BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL NASHVILLE TENN DOLLAR GENERAL CORP EXPECTS TO REPORT THAT EARNINGS ROSE 24 TO 34 IN ITS FOURTH QUARTER REFLECTING STRONG TRAFFIC AND REDUCED OVERHEAD THE CHAIN OF 1626 DISCOUNT STORES WILL REPORT NET INCOME BETWEEN 1525 MILLION AND 165 MILLION OR 56 CENTS TO 61 CENTS A SHARE FOR THE QUARTER ENDED JAN 29 SAID CAL TURNER JR CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT THAT COMPARES WITH 123 MILLION OR 46 CENTS A SHARE A YEAR EARLIER WHEN RESTATED TO REFLECT A 5FOR4 STOCK SPLIT IN APRIL REVENUE INCREASED 20 TO 292 MILLION FROM 243 MILLION IN THE THE YEARAGO PERIOD MR TURNER SAID IN AN INTERVIEW SAMESTORE SALES ROSE 126 IN THE QUARTER AND 155 FOR THE FISCAL YEAR WE HAD A GANGBUSTERS YEAR WITH SAMESTORE SALES INCREASES MR TURNER SAID THE COMPANY EXPECTS FISCAL 1993 NET INCOME TO CLIMB 59 TO 65 BETWEEN 3425 MILLION AND 355 MILLION OR 126 TO 131 A SHARE MR TURNER SAID THAT COMPARES WITH THE PRIOR YEAR'S NET OF 215 MILLION OR 102 A SHARE RESTATED FOR THE APRIL STOCK SPLIT REVENUE IN THE YEAR ROSE 22 TO 921 MILLION FROM 754 MILLION MR TURNER SAID IN THE 1994 FISCAL YEAR THE CHAIN PLANS TO POST SAMESTORE SALES GAINS OF 8 TO 12 THE COMPANY ALSO EXPECTS TO EXCEED ANALYSTS' EXPECTATIONS BY REPORTING A 20 GAIN IN NET INCOME FOR THE 1994 FISCAL YEAR MR TURNER SAID DOLLAR GENERAL IS BENEFITTING FROM REDUCED SHRINKAGE AND IMPROVED INVENTORY CONTROLS THE EXECUTIVE SAID THIS YEAR IT PLANS TO INVEST UP TO 8 MILLION IN CASH REGISTERS THAT TRACK SALES AND SCANNERS THAT TRACK STOCKROOM INVENTORY DOLLAR GENERAL ALSO INCREASED INCENTIVE COMPENSATION BY GIVING ASSISTANT STORE MANAGERS 3 OF THE STORE'S PROFIT AND BY GIVING CERTAIN WORKERS BONUSES LINKED TO PROFIT THE COMPANY MAINTAINED ITS EVERYDAY LOWPRICING STRATEGY REDUCING PRICES ON AT LEAST 200 GOODS SOME 100 ITEMS OF THOSE ITEMS INCLUDING BROOMS AND MOUTHWASH WERE CUT TO 1 OR LESS THIS YEAR THE COMPANY WILL ALSO CONTINUE TO SCALE BACK ON ADVERTISING DOLLAR GENERAL SAW A SHIFT IN SALES TO MORE HARD GOODS SUCH AS HEALTH AND BEAUTY PRODUCTS AND HOUSEWARES WHICH COMPRISED 635 OF SALES IN FISCAL 1993 COMPARED WITH 61 THE YEAR EARLIER THIS YEAR THE COMPANY INTENDS TO BOOST SALES OF SOFT GOODS BY FUNDING DEEPER INVENTORIES OF BASICS INCLUDING UNDERWEAR JEANS AND SWEATSHIRTS CUSTOMERS TOLD US THEY WERE BUYING MORE BASICS MR TURNER SAID THE COMPANY PLANS TO ADD 125 STORES THIS YEAR OPENING 185 NEW ONES AND CLOSING 60 IN FISCAL 1993 DOLLAR GENERAL HAD A NET INCREASE OF 100 STORES MR TURNER SAYS THE RECESSION HAD A PERMANENT IMPACT ON CUSTOMERS THE RECOVERY ISN'T GOING TO GENERATE CUSTOMERS WHO ARE CONSCIOUS OF BRAND WHO WILL PAY HIGHER PRICES HE SAID CONVENTIONAL RETAILERS WILL FIND MORE SALES IN THEIR PROMOTIONAL OFFPRICE MERCHANDISE 9303050156 930305 ROSS STORES FEBRUARY SALES ROSE NEWARK CALIF ROSS STORES INC REPORTED SALES OF 57 MILLION FOR THE FOURWEEK PERIOD ENDED FEB 27 UP 8 FROM THE YEARAGO PERIOD ON A COMPARABLESTORE BASIS SALES WERE DOWN 1 9303050155 930305 SOLO SERVE FEBRUARY SALES SAN ANTONIO SOLO SERVE CORP SAID SALES IN STORES OPEN MORE THAN ONE YEAR FELL 77 IN A FOURWEEK PERIOD ENDED SATURDAY THE OFFPRICE RETAILER SAID TOTAL SALES FOR THE PERIOD ROSE 14 TO 106 MILLION FROM 93 MILLION IN THE LIKE PERIOD OF 1992 9303050154 930305 HEINEKEN POSTS INCREASE OF 27 IN 1992 EARNINGS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM BUOYED BY A ONETIME GAIN ON THE SALE OF LAND DUTCH BREWER HEINEKEN NV REPORTED A 27 JUMP IN NET INCOME ON A 29 RISE IN SALES DESPITE THE HEALTY EARNINGS RISE HEINEKEN HELD ITS ANNUAL DIVIDEND FOR 1992 STEADY AT THE YEAREARLIER 350 GUILDERS 189 A SHARE OF THAT TOTAL 150 GUILDERS ALREADY HAVE BEEN DISTRIBUTED AS AN INTERIM DIVIDEND LAST SEPTEMBER LEAVING A FINAL PAYOUT AT 200 GUILDERS THE COMPANY HAS DEVELOPED FAVORABLY IN 1992 HEINEKEN SAID NET INCOME TOTALED 564 MILLION GUILDERS 3044 MILLION LAST YEAR UP FROM 443 MILLION GUILDERS IN 1991 HEINEKEN IS THE WORLD'S SECONDLARGEST BREWER BEHIND ANHEUSER BUSCH COS OF THE US AND IT HAS THE LARGEST SHARE OF THE US IMPORTED BEER MARKET ESPECIALLY AMONG PREMIUM BRANDS ITS POSITION IN THE US HAS BEEN UNDER ASSAULT BY BREWERS FROM OTHER COUNTRIES IN RECENT YEARS OF ITS BROAD RANGE OF INDIVIDUAL BRANDS WORLDWIDE THE COMPANY'S MAINSTAY HEINEKEN AND AMSTEL BEERS PERFORMED PARTICULARLY WELL LAST YEAR ITS OTHER BRANDS ALSO IMPROVED SALES AND IMPROVED PRODUCTIVITY HELPED WIDEN PROFIT MARGINS HEINEKEN SAID THE COMPANY SAID THE MODERATED RISE IN GLOBAL SALES WAS CAUSED BY THE SLIDE IN VALUE OF THE BRITISH POUND AND THE ITALIAN LIRA 9303050153 930305 BCE SELLS TRANSCANADA STAKE MONTREAL BCE INC SAID IT SOLD ITS REMAINING 45 STAKE IN TRANSCANADA PIPELINES LTD FOR 18 CANADIAN DOLLARS US1448 A SHARE OR A TOTAL OF C143 MILLION US1151 MILLION BCE A MONTREAL TELECOMMUNICATIONS COMPANY HELD 49 OF TRANSCANADA AS RECENTLY AS 1990 BUT BCE HAD GRADUALLY LOWERED ITS STAKE IN THE CALGARY ALBERTA NATURALGAS PIPELINE CONCERN AS PART OF A PROGRAM TO SHED NONCORE ASSETS 9303050152 930305 LEISURE & ARTS ON SPORTS CRUNCH TIME FOR K'S BOYS BY FREDERICK C KLEIN DURHAM NC NOBODY HAS A RIGHT TO A PERFECT LIFE A FACT THAT FINALLY CAME HOME TO THE DUKE UNIVERSITY BASKETBALL TEAM AND ITS FOLLOWERS IN MIDMONTH LAST DURING A HOME GAME AGAINST WAKE FOREST ON FEB 13 JUMPINGJACK JUNIOR FORWARD GRANT HILL DUKE'S MOST TALENTED PLAYER SPRAINED A BIG TOE AN INJURY THAT DOESN'T SOUND PAINFUL UNLESS THE TOE IS YOURS THE TEAM LOST THAT GAME AND THE NEXT ONE AGAINST VIRGINIA QUICK AS YOU CAN SAY PARTY'S OVER ITS PROSPECTS FOR A THIRD STRAIGHT NCAA TITLE HAD DIMMED APPRECIABLY BUT THEN DUKE BEAT NORTH CAROLINA STATE AND THEN TOUGH FLORIDA STATE BY 23 POINTS AND THEN UCLA ALL WITH HILL WATCHING FROM THE BENCH IN TIE AND JACKET AND ON WEDNESDAY NIGHT HERE AFTER BEATING MARYLAND EASILY STILL SANS THE STAR THINGS DIDN'T LOOK SO BAD AFTER ALL INDEED THE SILVERLINING DEPARTMENT WAS OPERATING FULL BLAST IN THE WAKE OF THE BLUE DEVILS' 9579 VICTORY GARY WILLIAMS THE MARYLAND COACH TURNED THE FIRST CRANK BY NOTING THAT IN HILL'S ABSENCE THE GUYS WHO'VE REPLACED HIM HAVE TAKEN OTHER MORE IMPORTANT ROLES AND OPINING THAT THIS SHOULD MAKE DUKE ALL THE TOUGHER WHEN NCAA TOURNAMENT TIME AGAIN COMMENCES A COUPLE WEEKS HENCE ALREADY WHEN ASKED IN HIS TURN WHAT HE THOUGHT OF THAT VIEW DUKE COACH MIKE KRZYZEWSKI SAID HE MIGHT AGREE IF TWO CONDITIONS WERE MET THE FIRST WAS THAT HILL GETS WELL AND BACK IN SHAPE SOON THE SECOND WAS THAT HIS ERSTWHILE REPLACEMENTS NOT REVERT TO SOME OF THEIR FORMER LESS ADMIRABLE HABITS THOSE ARE TWO BIG THINGS TO HAPPEN BUT WE'LL BE SPENDING A LOT OF TIME MAKING THOSE POINTS BETWEEN NOW AND TOURNAMENT TIME COACH K DECLARED ONE NEED NOT BE A CARDCARRYING FRONTRUNNER TO HOPE THAT K'S CONDITIONS ARE MET IF ONLY BECAUSE IT WOULDN'T MUCH SEEM LIKE TOURNAMENT TIME WITHOUT THE DOOKIES THEY HAVE MADE THE FINAL FOUR IN SIX OF THE PAST SEVEN YEARS AND THE TERMINAL TWO THE PAST THREE AND HAVE EMERGED AS THE ONLY ONE THE PAST TWO WITH SOME 300 SCHOOLS IN THE FIELD EACH TIME THAT'S ONE OF THE MOST AMAZING FEATS IN SPORTS AND IT WOULD BE A SHAME TO SEE IT END BECAUSE OF A SORE BIG TOE HOW DID UCLA WIN ALL THOSE TITLES BACK IN THE '60S AND '70S ANYWAY THE COMMON DENOMINATOR IN DUKE'S REIGN HAS BEEN KRZYZEWSKI A BUTTONEDDOWN TYPE WHOSE EARS CAN STEAM WITH ANY IN HIS FRATERNITY AT TIMES OF STRESS BUT WHO CAN SEEM SENSIBLE AND EVEN HUMOROUS AT OTHERS THIS IS A MAN WHO USUALLY SPEAKS OF HIS TEAMS NOT IN TERMS OF X'S AND O'S OR O AND D BUT IN THOSE OF THE SOCIAL SCIENTIST BANDYING ABOUT WORDS LIKE PERSONALITY AND INTERACTION ONE MIGHT THINK HIS PUPILS GET ENOUGH OF THAT SORT OF STUFF IN THE CLASSROOM BUT THESE DAYS WHO KNOWS IT HAS HELPED OF COURSE THAT MANY OF THE LADS K HAS INSTRUCTED ARE VERY TALL VERY AGILE OR BOTH AND THIS YEAR'S TEAM IS NO EXCEPTION IT INCLUDES THREE YOUNG MEN WHO SEEM CERTAIN TO BECOME RICH IN THE SPORT WHEN THEIR COLLEGE DAYS ARE DONE AND A FOURTH WHO HAS A CRACK AT SUCH A BOUNTY THE FIRST THREE ARE GRANT HILL SENIOR GUARD BOBBY HURLEY AND SOPHOMORE CENTER CHEROKEE PARKS THE FOURTH IS THOMAS HILL A SENIOR FORWARD HURLEY AND THOMAS HILL PLAYED THEIR LAST HOME GAMES AS DOOKIES ON WEDNESDAY AND IT WAS AN OCCASION FOR OVATIONS SPEECHES AND A RECORD THE RECORD FOR MOST ASSISTS IN A MAJORCOLLEGE CAREER WAS HURLEY'S THE SLIM SADEYED YOUNG MAN FROM JERSEY CITY NJ HAD 12 ASSISTS AGAINST MARYLAND AND THE FIFTH OF THOSE A PASS THAT SET UP TALL SOPHOMORE ERIC MEEK FOR A LAYUP BASKET NINE MINUTES INTO THE CONTEST WAS HURLEY'S 1039TH PUTTING HIM PAST CHRIS CORCHIANI LATE OF NORTH CAROLINA STATE IN THAT DEPARTMENT THE MOMENT WAS MARKED BY THE REMOVAL OF THE GAME BALL FROM PLAY FOR EVENTUAL INCLUSION IN SOMEONE'S TROPHY CASE THE PREVIOUS WEEK BEFORE THE UCLA GAME HURLEY'S NO 11 JERSEY HAD BEEN SIMILARLY RETIRED FORTUNATELY THEY HAD ANOTHER JERSEY HE COULD WEAR FOR THE REMAINDER OF THIS SEASON AND ANOTHER BALL WAS HANDY SO WEDNESDAY'S GAME COULD CONTINUE PARKS IS A 6FOOT11 CALIFORNIAN WHO HAS ABLY FILLED THE SPOT VACATED WHEN CHRISTIAN LAETTNER THE BIG MAN OF DUKE'S TWO CHAMPIONSHIP TEAMS MOVED UP TO THE PROS UNLIKE LAETTNER WHO PREFERRED TO ROAM PARKS STAYS IN THE MIDDLE FOR PURPOSES OF REBOUNDING AND SHOT BLOCKING AND HE MAY ALREADY BE BETTER AT THOSE FUNCTIONS THAN HIS PREDECESSOR THAT HE'S A DISCIPLINED OFFENSIVE PLAYER AS WELL IS ATTESTED BY HIS 67 FIELDGOAL AVERAGE BUT EVEN WITH THOSE TWO FELLOWS AND THE VERSATILE THOMAS HILL IT'S UNLIKELY THAT DUKE CAN GO FAR WITHOUT GRANT HILL THE TEAM'S LEADING SCORER WITH AN 183POINT AVERAGE HE HAS THE CAPACITY TO SCORE WHEN THE COACH'S PLAY BREAKS DOWN AS IT OFTEN DOES HE WAS IN UNIFORM WEDNESDAY BUT KRZYZEWSKI CAUTIONED NOT TO MAKE TOO MUCH OF THAT HE WON'T PLAY SUNDAY IN THE REGULARSEASON FINALE AT ARCHRIVAL NORTH CAROLINA AND BECAUSE HE HASN'T RUN IN THREE WEEKS WE'LL HAVE TO BE CAREFUL ABOUT HIS CONDITION WHEN HE DOES RETURN SAID THE COACH THE MAIN PLAYERS WHO'VE STEPPED UP IN GRANT HILL'S ABSENCE ARE MEEK FRESHMAN GUARD CHRIS COLLINS AND JUNIOR FORWARD MARTY CLARK THEY HAD 25 POINTS BETWEEN THEM ON WEDNESDAY IN A GAME WHOSE OUTCOME WASN'T IN DOUBT AFTER DUKE LAUNCHED A 194 SCORING RUN TO TAKE A 13POINT LEAD MIDWAY THROUGH THE FIRST HALF BUT THINGS WILL GET MORE DIFFICULT FROM NOW ON NORTH CAROLINA SUNDAY'S FOE CLINCHED THE ATLANTIC COAST CONFERENCE REGULARSEASON TITLE BY BEATING WAKE FOREST ON WEDNESDAY AND ITS OVERALL WONLOST MARK OF 253 TO DUKE'S 235 ASSURES IT THE NO 1 SEED IN THE ACC TOURNAMENT THAT FOLLOWS AND NATURALLY WHICHEVER TEAM DRAWS DUKE IN THE NATIONAL TOURNEY BEYOND WILL STRIVE MIGHTILY TO BE THE ONE THAT SLAYS THE KING AFTER THE MARYLAND GAME THOUGH KRZYZEWSKI CHOSE TO LOOK BACK PRAISING HURLEY AND THOMAS HILL FOR PAST ACHIEVEMENTS BOBBY'S HIGH SCHOOL AND COLLEGE CAREERS STATE TITLES IN THE FORMER NATIONAL TITLES IN THE LATTER HAVE BEEN LIKE A STORYBOOK THE COACH RAVED HOW COULD IT BE BETTER WE ALL KNOW THE ANSWER TO THAT ONE 9303050151 930305 NETFRAME SAYS FIRSTQUARTER NET TO RISE SHARPLY BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL BOLSTERED BY GROWING SALES OF ITS SERVER COMPUTERS TO THE COMPUTERNETWORKING MARKET NETFRAME SYSTEMS INC SAID IT EXPECTS TO POST FIRSTQUARTER NET THAT IS MORE THAN DOUBLE THAT OF A YEAR AGO NETFRAME IS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR FIRSTQUARTER NET INCOME OF NINE CENTS A SHARE COMPARED WITH THE EQUIVALENT OF FOUR CENTS A SHARE IN THE YEARAGO QUARTER ENZO TORRESI NETFRAME'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW NETFRAME'S SHARES HAVE TRADED PUBLICLY SINCE JUNE ANALYSTS' ESTIMATES THAT TOTAL 1993 NET INCOME WILL RISE 66 TO 70 CENTS A SHARE ARE IN LINE WITH NETFRAME'S EXPECTATIONS MR TORRESI ADDED FOR ALL OF 1992 THE MILPITAS CALIF COMPANY POSTED NET OF 32 MILLION OR 29 CENTS A SHARE ON REVENUE OF 39 MILLION NETFRAME EXPECTS TO MEET ANALYSTS' ESTIMATES FOR 1993 TOTAL REVENUE OF ABOUT 71 MILLION OR 82 OVER 1992 REVENUE OF 39 MILLION MR TORRESI SAID WE HAVEN'T SEEN ANYTHING HERE THAT SAYS WE WON'T BE ABLE TO DO THAT HE ADDED THE EXPECTED 1993 ANNUAL SALES GROWTH MEANS NETFRAME WILL HAVE THREE STRAIGHT YEARS OF REVENUE GROWTH HE SAID MR TORRESI SAID THE COMPANY HAS BEEN BENEFITING FROM THE GROWING TREND OF LINKING DESKTOP COMPUTERS WITH COMPUTERS CALLED SERVERS WHICH ARE TYPICALLY USED AS CENTRAL FILE BANKS FOR THOSE NETWORKS NETFRAME MAKES AND SELLS HIGHEND FILESERVER COMPUTERS BY SUMMER NETFRAME PLANS TO BEGIN SELLING SYSTEMS BASED ON INTEL CORP'S LATEST GENERATION MICROPROCESSOR THE PENTIUM MR TORRESI SAID IT CURRENTLY USES INTEL'S 486 AND 386 MICROPROCESSORS WHICH ACT AS THE COMPUTERS' BRAINS LAST WEEK THE COMPANY UNVEILED ITS NEW C/S LINE OF SERVER COMPUTERS WHICH USE MULTIPLE MICROPROCESSORS TO PERFORM DIFFERENT FUNCTIONS ADDING POWER AND FEATURES THAT HAVE BEEN UNAVAILABLE IN OTHER MODELS SELLING PRICES OF THE NEW COMPUTERS RANGE FROM 30000 TO 750000 DEPENDING ON THE MODEL MR TORRESI SAID SALES OF THOSE COMPUTERS WHICH BEGIN SHIPPING THIS WEEK AREN'T EXPECTED TO SIGNIFICANTLY AFFECT FIRSTQUARTER REVENUE NETFRAME STOCK HAS HAD A STELLAR RUN IN OVERTHECOUNTER TRADING DURING THE PAST SEVERAL MONTHS FROM A LOW OF 850 A SHARE AFTER AN INITIAL PUBLIC OFFERING IN JUNE 1992 THE STOCK NEARLY TRIPLED TO A HIGH IN JANUARY OF 2375 A SHARE 9303050150 930305 MICHAELS STORES SALES IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES WERE EVEN IN FEBRUARY HURT BY HARSH WEATHER CONDITIONS DURING MAJOR PROMOTIONS IN THE LATTER PART OF THE MONTH THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 16 TO 351 MILLION 9303050149 930305 POLITICS & POLICY AFTER DIAGNOSING A CASE OF OUTOFCONTROL COSTS HEALTH STRATEGIST MAGAZINER NOW MUST FIND CURE BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A FEW WEEKS BEFORE THE ELECTION SOME OF BILL CLINTON'S TOP ADVISERS BEGAN SUGGESTING THAT HE PUT OFF HIS PLANS TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM AND CONCENTRATE FOR THE TIME BEING ON THE ECONOMY BUT UP IN PROVIDENCE RI A LONGTIME FRIEND OF THE PRESIDENTTOBE WAS BUSY CHURNING OUT REAMS OF DATA ILLUSTRATING THAT THE TWO ISSUES ARE INEXTRICABLY LINKED UNLESS THE RELENTLESS RISE IN HEALTHCARE COSTS COULD BE BROUGHT UNDER CONTROL QUICKLY THE NUMBERS SHOWED THE SLUGGISH ECONOMY NEVER REALLY WOULD RECOVER IRA MAGAZINER'S ARGUMENT WON OUT NOW THOUGH HE HAS TO DO FAR MORE THAN JUST DEMONSTRATE THE PROBLEM HE HAS TO COME UP WITH THE SOLUTION THE WHITE HOUSE HAS RECRUITED HUNDREDS OF THE NATION'S LEADING EXPERTS TO CRAFT A PLAN TO OVERHAUL THE HEALTH SYSTEM BUT IT'S MR MAGAZINER A RELATIVE NEWCOMER TO THE FIELD WHO HAS THE POWER HILLARY RODHAM CLINTON CHAIRWOMAN OF THE ADMINISTRATION'S HEALTHCARE TASK FORCE CLEARLY IS IN CHARGE OF THIS REMARKABLE UNDERTAKING BUT AS THE LEADER OF THE WORKING GROUP PUTTING TOGETHER THE DETAILS OF THE PROPOSAL MR MAGAZINER IS THE ONE WHO HAS HIS HANDS ON THE PLUMBING HE IS USING HIS AUTHORITY TO FOCUS ON SWIFT AND DRASTIC MEDICAL COST CONTROL SOME FEAR MR MAGAZINER MAY BE TAKING ON TOO MUCH TOO FAST I THINK HE IS OVERLY OPTIMISTIC ABOUT THE POSSIBILITIES OF QUICK SAVINGS SAYS HENRY AARON AN ECONOMIST AT THE BROOKINGS INSTITUTION WHOSE ADVICE WAS SOUGHT BY THE CLINTON CAMPAIGN BUT MR MAGAZINER IS SOLIDLY BACKED BY THE ONLY TWO PEOPLE WHO REALLY MATTER THE PRESIDENT AND MRS CLINTON COSTS HAVE TO BE RESTRAINED NOT FIVE YEARS FROM NOW BUT AS QUICKLY AS POSSIBLE MR MAGAZINER SAYS IN HIS FIRST INTERVIEW SINCE TAKING THE HELM OF THE WORKING GROUP IF YOU DON'T DO HEALTH REFORM AND I MEAN NOW THE BUDGET IS BUSTED AGAIN IN TWO YEARS OF THE 800 BILLION THAT THE NATION SPENDS EACH YEAR ON HEALTH CARE HE FIGURES THAT 130 BILLION GOES FOR UNNECESSARY TESTS AND PROCEDURES AND 70 BILLION FOR UNNECESSARY ADMINISTRATIVE COSTS A HIGHLY SUCCESSFUL BUSINESS CONSULTANT MR MAGAZINER IS WIDELY ADMIRED FOR HIS KEEN INTELLECT AND THE FACT THAT HE ISN'T BEHOLDEN TO ANY PARTICULAR CAMP IN THE DEBATE OVER HEALTHCARE REFORM IF YOU DIDN'T HAVE IRA MAGAZINER TO MAKE THIS WORK YOU'D HAVE TO INVENT HIM SAYS PAUL ELLWOOD A PHYSICIAN AND ORGANIZER OF AN INFLUENTIAL GROUP OF ACADEMICS AND MEDICAL INDUSTRY EXECUTIVES SEEKING SOLUTIONS TO THE HEALTH CRISIS BUT SOME WORRY THAT THE RAPID SAVINGS MR MAGAZINER IS SEEKING COULD END UP UNDERMINING THE ADMINISTRATION'S LONGTERM STRATEGY FOR EXTENDING HEALTH COVERAGE TO THE 37 MILLION AMERICANS WHO DON'T HAVE IT WHILE CURBING COSTS PERMANENTLY HEALTHCARE REFORM IS GOING TO TAKE A LOT LONGER THAN ANYONE WOULD LIKE TO HEAR INCLUDING IRA SAYS STEVEN BARON PRESIDENT OF MIRIAM HOSPITAL IN PROVIDENCE WHO WORKED WITH MR MAGAZINER ON A PLAN TO MAKE RHODE ISLAND'S MEDICAL DELIVERY SYSTEM FOR THE ELDERLY MORE EFFICIENT IF YOU ERR ON THE SIDE OF SAVING MONEY NOW YOU'RE PROBABLY NOT TALKING ABOUT REAL REFORM EVEN SOME ADVISING THE WHITE HOUSE TASK FORCE ARE WARY OF MR MAGAZINER'S ZEAL YET MR MAGAZINER'S BACKGROUND HAS OBVIOUSLY CONVINCED HIM HE CAN SUCCEED IN THE BUSINESS WORLD HE HAS SOLVED HIGHLY COMPLICATED PROBLEMS FOR GENERAL ELECTRIC CO RUBBERMAID INC AND OTHER CORPORATE GIANTS SOMETIMES PRACTICALLY OVERNIGHT HE HAS COME IN WITH PRETTY BRUTAL DATA ABOUT HOW WE'RE THE HIGHCOST PRODUCER IN A CERTAIN AREA AND NEED TO IMPROVE ON THAT OR WE'RE GOING TO HAVE REAL TROUBLE SAYS JAMES HOUGHTON THE CHAIRMAN OF CORNING INC COSTS ARE A PART OF HIS THINKING TWO YEARS AGO MR MAGAZINER HELPED LEAD A STUDY OF THE HEALTHCARE SYSTEM IN RHODE ISLAND THAT BROKE DOWN THE COST OF MEDICAL SERVICES AS IF THEY WERE PRODUCTS ON A FACTORY FLOOR THE REPORT WHICH EVEN MEDICAL INDUSTRY VETERANS FOUND EYEOPENING SHOWED THAT ONLY 48 CENTS OF EVERY DOLLAR SPENT ON HEALTH CARE IN THE STATE ACTUALLY GOES TOWARD HEALING THE SICK THE REST IS BASICALLY FOR BOOKKEEPING AND OTHER OVERHEAD NURSES THE REPORT FOUND MAY SPEND HALF THEIR TIME ON DUTY FILLING OUT FORMS GIVEN THOSE FINDINGS FEW WHO WORKED WITH MR MAGAZINER ON THAT PROJECT WOULD BE SURPRISED TO SEE THE WHITE HOUSE TASK FORCE RECOMMENDING THAT WHOLE LAYERS OF THE HEALTHCARE BUREAUCRACY SIMPLY BE STRIPPED AWAY CURRENTLY FOR EXAMPLE A HOSPITAL BILL PAID UNDER THE FEDERAL MEDICARE PROGRAM FOR THE ELDERLY CAN GO THROUGH AS MANY AS SIX LAYERS OF REVIEW DOCTORS AND NURSES A HOSPITAL'S UTILIZATION REVIEW DEPARTMENT A FISCAL INTERMEDIARY A SOCALLED PEER REVIEW ORGANIZATION A SUPER PEER REVIEW ORGANIZATION AND FINALLY THE HEALTH CARE FINANCING ADMINISTRATION IN WASHINGTON IT'S CHECKERS CHECKING OTHER CHECKERS MR MAGAZINER SAYS STILL MANY HEALTHCARE EXPERTS AREN'T AS CONFIDENT AS MR MAGAZINER THAT THE LAYERS CAN BE DONE AWAY WITH AND DOLLARS SAVED SO EASILY IRA'S ESTIMATE OF HOW MUCH WAS WASTE IS NOT AGREED TO BY EVERYBODY SAYS PATRICK MATTINGLY PRESIDENT AND MEDICAL DIRECTOR OF HARVARD COMMUNITY HEALTH PLAN OF NEW ENGLAND WE JUST CAN'T TAKE AWAY SOME OF IT AS RAPIDLY AS MR MAGAZINER THINKS HE CAN WHITTLE THE BUREAUCRACY HE KNOWS THAT A COMPREHENSIVE REFORM PLAN WILL TAKE TIME TO IMPLEMENT SO MEANWHILE HE HAS SET UP A SPECIAL PANEL TO EXPLORE SHORTTERM OPTIONS IT IS LOOKING AT SEVERAL POSSIBILITIES THAT ADVOCATES SAY WOULD IMPOSE DISCIPLINE IN THE SYSTEM BUT WOULD SURELY BE POLITICALLY EXPLOSIVE AN OUTRIGHT FREEZE ON ALL MEDICAL PRICES SIMILAR TO THE ECONOMYWIDE CONTROLS IMPOSED BY PRESIDENT NIXON IN THE EARLY 1970S REQUIRING PRIVATE INSURERS TO REIMBURSE DOCTORS AND HOSPITALS AT MEDICARE'S RATES WHICH ARE AT LEAST 10 LOWER THAN FEES PRIVATE INSURERS NOW PAY AND LIMITING THE ANNUAL INCREASE IN INSURANCE PREMIUMS WHILE MR MAGAZINER SAYS HE IS COMMITTED TO MARKET COMPETITION AS THE ULTIMATE WAY TO REIN IN HEALTH COSTS MANY PEOPLE FEEL THAT SUCH GOVERNMENT MANDATES WOULD RUN COUNTER TO HIS GRAND GOAL ONCE YOU GET ON A PRICECONTROL REGIME IT'S HARD TO GET OFF BILL GRADISON A FORMER CONGRESSMAN WHO IS NOW PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA SAYS HE TOLD MR MAGAZINER RECENTLY EVEN IF SHORTTERM PRICE CONTROLS ARE SUCCESSFULLY LIFTED MR GRADISON AND OTHERS ARGUE THAT THEY COULD STIFLE THE INNOVATION THAT IS NECESSARY TO HOLDING DOWN COSTS IN THE MARKETPLACE ADDITIONALLY ONCE THE CONTROLS ARE LIFTED SOME BELIEVE THAT PRICES WOULD SOAR MUCH AS THEY DID WHEN PRESIDENT NIXON ENDED FEDERAL PRICE RESTRAINTS IN THE SPRING OF 1974 BEYOND DIRECTLY CONTROLLING COSTS OF COURSE LIES THE DAUNTING TASK OF EXTENDING HEALTH COVERAGE TO ALL AMERICANS IT IS NO SECRET THAT MR CLINTON WANTS TO MEET THIS CHALLENGE THROUGH MANAGED COMPETITION A BLEND OF FREEMARKET FORCES AND GOVERNMENT REGULATION UNDER WHICH EMPLOYERS AND INDIVIDUALS WOULD BAND TOGETHER IN GIANT POOLS TO SHOP FOR HEALTH COVERAGE THE HOPE IS THAT THE TREMENDOUS BUYING POWER OF THESE POOLS WOULD HEIGHTEN COMPETITION AMONG INSURANCE COMPANIES DOCTORS HOSPITALS AND OTHER HEALTHCARE PROVIDERS LOWERING COSTS AND IMPROVING QUALITY FOR EVERYONE MR MAGAZINER IS THE ONE WHO BROUGHT THE BASIC MANAGEDCOMPETITION CONCEPT TO THE CLINTONS SAYS DR ELLWOOD WHO IS CONSIDERED THE FATHER OF THE THEORY HE FELT IT WAS VERY PRACTICAL AND PRAGMATIC ACTUALLY IT'S PROBABLY MORE APT TO DESCRIBE MANAGED COMPETITION AS COMPLEX AND UNTESTED THAT MR MAGAZINER WOULD BE ATTRACTED TO SUCH AN APPROACH IS FITTING AS A 45YEAROLD FATHER OF THREE WHOSE HIGH FOREHEAD IS COVERED BY A TOUSLED MOP OF HAIR THAT IS MORE SALT THAN PEPPER MR MAGAZINER IS TOO OLD AT THIS POINT TO BE CALLED A WHIZKID BUT HE IS A RADICAL THINKER TRAINED HE SAYS TO DO IN MY MIND A WHOLE SERIES OF WHATIF'S TO THINK OF ALL THE POSSIBLE SCENARIOS THAT CAN SCREW SOMETHING UP HE OFTEN SEES THINGS IN A DIFFERENT CAST THAN EVERYBODY ELSE SAYS ROBERT RUBIN THE HEAD OF THE WHITE HOUSE NATIONAL ECONOMIC COUNCIL ADDS TREASURY SECRETARY LLOYD BENTSEN THE IDEAS JUST SORT OF EFFERVESCE MOST IMPORTANT WHEN HE COMES UP WITH ONE MR MAGAZINER HAS AN OPEN DOOR TO THE PRESIDENT WHOM HE HAS KNOWN SINCE THEY WERE RHODES SCHOLARS 23 YEARS AGO HE ALSO HAS A SELFDESCRIBED VERY EASY RELATIONSHIP WITH MRS CLINTON WITH WHOM HE HAS WORKED CLOSELY IN THE PAST HE NOW MEETS HER EVERY MORNING IN HER WEST WING OFFICE ATTEMPTING HEALTHCARE REFORM ISN'T MR MAGAZINER'S FIRST SEEMINGLY QUIXOTIC PURSUIT AS A BROWN UNIVERSITY STUDENT IN THE LATE 1960S HE PERSUADED THE ADMINISTRATION TO REVAMP THE ENTIRE CURRICULUM A MOVE THAT BROUGHT THE SCHOOL ENORMOUS POPULARITY A FEW YEARS LATER HE JOINED A GROUP OF YOUNG IDEALISTS HOPING TO REVITALIZE THE DOWNTRODDEN COMMUNITY OF BROCKTON MASS RESULTS WERE DISAPPOINTING A DECADE AGO MR MAGAZINER PUSHED AN INDUSTRIAL POLICY PLAN IN RHODE ISLAND VOTERS REJECTED IT BY A 4TO1 MARGIN IT IS DOUBTFUL THOUGH HE HAS EVER WORKED HARDER OVER LUNCH AT THE WHITE HOUSE A FEW DAYS AFTER THE INAUGURATION MR MAGAZINER HANDED THE PRESIDENT A SCHEDULE SHOWING COMPLETION OF THE HEALTH PLAN AT THE END OF MAY A MONTH BEYOND THE FIRST 100 DAYS PLEDGE THAT MR CLINTON HAD MADE DURING THE CAMPAIGN BUT MR CLINTON CROSSED OUT THE DATE SAYING THAT IF THINGS SLIPPED BEYOND THE 100DAY DEADLINE IT COULD JEOPARDIZE THE PLAN'S CHANCES OF GETTING THROUGH CONGRESS THIS YEAR IT IS NOW 59 DAYS AND COUNTING MANY A MORNING MR MAGAZINER WAKES UP WELL BEFORE SUNRISE IN HIS HOTEL SUITE AND ARRIVES AT THE OLD EXECUTIVE OFFICE BUILDING BY 4 AM TO READ AND WRITE AT 7 THERE'S A STAFF MEETING BY 930 HE'S IN WITH THE FIRST LADY OFTEN HE CAN STILL BE FOUND IN THE OFFICE 12 HOURS LATER CONSIDERING ALL THE WHATIF'S 9303050148 930305 BED BATH SALES UP 33 SPRINGFIELD NJ BED BATH & BEYOND INC SAID SALES ROSE 33 IN FEBRUARY TO 208 MILLION FROM 156 MILLION WHILE COMPARABLESTORE SALES ROSE 59 FOR THE FISCAL YEAR ENDED SUNDAY SALES CLIMBED 29 TO 2168 MILLION WHILE COMPARABLESTORE SALES ROSE 72 BED BATH & BEYOND OPERATES A NATIONWIDE CHAIN OF SUPERSTORES SELLING DOMESTIC MERCHANDISE AND HOME FURNISHINGS 9303050147 930305 SMALL CLIQUISH ANTIQUE PEN MARKET HAS SPECULATION WRITTEN ALL OVER IT BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL LAST MONTH IN FORT LAUDERDALE FLA AN ESTATE LIQUIDATOR ACTING ON A HUNCH SHELLED OUT 50 FOR AN ANTIQUE FOUNTAIN PEN HE WAS PRETTY SURE HE WAS ONTO A GOOD THING WHEN A PEN DEALER FROM TAMPA AGREED TO FLY DOWN TO MEET HIM ON THE SAME DAY THE DEALER BOUGHT THE PEN FOR 12500 BUT THAT WAS JUST THE PENULTIMATE TRANSACTION THE DEALER THEN TURNED AROUND AND SOLD THE PEN FOR 30000 TO A CHICAGO COLLECTOR AND MORE DEALS MAY BE PENDING SINCE THAT TIME THE COLLECTOR CLAIMS TO HAVE BEEN OFFERED 40000 FOR THE PIECE THE MARKET FOR ANTIQUE FOUNTAIN PENS IS LOOKING WELL STUPENDOUS AS A RELATIVE HANDFUL OF SERIOUS COLLECTORS CIRCLES THE GLOBE FROM LONDON AUCTION HOUSES TO MIDEAST FLEA MARKETS IN SEARCH OF NIBTIPPED TREASURES THE PEN DISCOVERED IN FLORIDA WAS THAT RAREST OF FINDS HELD BY DEALERS AND COLLECTORS TO BE THE KING OF PENS THE WATERMAN SNAKE MODEL ONLY FOUR OF THE BLACK PENS FEATURING TWO SILVER OR GOLDEN SNAKES WITH EMERALD EYES ARE STILL KNOWN TO EXIST WATERMAN COLLECTORS WOULD SELL THEIR SOUL FOR IT SAYS DONALD LEVIN A COLLECTOR WHO ORGANIZES PEN SHOWS IN CHICAGO FOR YEARS MY WIFE THOUGHT I WAS A LUNATIC SAYS MR LEVIN THE 49YEAROLD LAWYER FOUND HIS FIRST PARKER 51 A 1940S PEN THAT WRITES SMOOTHLY ON THE STREET WHEN HE WAS 11 YEARS OLD BUT NOW SHE THINKS IT'S A BLESSING IN DISGUISE HE LAUGHS FIRST BECAUSE THE VALUES HAVE ESCALATED AND SHE'S BEEN ABLE TO TRAVEL ALL OVER THE WORLD WITH ME LEADING COLLECTOR JONATHAN STEINBERG OF NEW YORK RECENTLY TURNED A BUSINESS TRIP TO ISRAEL INTO A PENBUYING MISSION SOME DILIGENT RUMMAGING THROUGH TEL AVIV'S ANTIQUE STORES PAID OFF WITH AN EXOTIC PEN BY KATAB A PREWORLD WAR II PALESTINIAN COMPANY SAYS MR STEINBERG WHOSE OWN 1000PEN COLLECTION IS VALUED AT ABOUT 600000 HIS FAVORITE PIECE A HEAVY GOLDEN MONT BLANC PEN FROM THE 1920S WHICH HE CLAIMS TO BE WORTH BETWEEN 45000 AND 50000 THERE IS A VERY STRONG MARKET AT THE MOMENT SAYS PEN SPECIALIST MICHAEL PRITCHARD AT CHRISTIE'S INTERNATIONAL PLC IN LONDON WF&C BONHAM & SONS LTD A LONDON AUCTION HOUSE KNOWN FOR ITS VINTAGE PENS HELD A RECORD EIGHT SALES LAST YEAR SELLING SCRIBBLERS VALUED AT A TOTAL OF 578000 A JUMP OF 20 FROM 1991 NO FEWER THAN 10 COLLECTORS ARE SAID TO HAVE AMASSED PERSONAL HOLDINGS WORTH MORE THAN 500000 LAST MONTH IN LONDON ABOUT 100 COLLECTORS WERE REUNITED FOR AN AUCTION AT BONHAMS WHERE THE STARS OF THE CATALOG INCLUDED A 1924 MONT BLANC SPIDERS WEB A STURDY BLACK PEN WITH A SILVER WEB OVERLAY WHICH WENT FOR 3181 AND THE WORLD'S SMALLEST PEN A TINY BLACK WATERMAN MADE FOR QUEEN MARY'S DOLLHOUSE THE LONDON AUCTIONS ARE CIVILIZED AFFAIRS A CHANCE FOR PEN PILGRIMS TO SOCIALIZE AS WELL AS DO BUSINESS THEY MEET FOR DRINKS AT NIGHT AND RECONVENE IN THE MORNING TO COMB THE PORTOBELLO ROAD FLEA MARKET FOR MORE TREASURES BY CONTRAST AN ANNUAL PEN CONVENTION IN NEW JERSEY IS A FRENZIED EVENT SAYS ORGANIZER STUART SCHNEIDER SOMEONE OPENING A BOX OF PENS IS ALMOST TACKLED BY A MOB TRYING TO GET THE FIRST CRACK SAYS MR SCHNEIDER THERE'S LOTS OF MONEY TO BE MADE NOTES THE BRITISHBORN MR STEINBERG JUST HOW MUCH HE WON'T SAY THE INTERNATIONAL LAWYER RUNS A LUCRATIVE BUSINESS SELLING PENS ON THE SIDE IF I SAT DOWN AND FIGURED OUT HOW BIG THE BUSINESS IS I'D GIVE UP MY PRACTICE OF LAW IMMEDIATELY HE LAUGHS BUT SO FAR HE ESTIMATES THAT NO MORE THAN 25 BUYERS CURRENTLY MAKE A LIVING ON ANTIQUE PENS ALONE TO BE ABLE TO AFFORD THE PENS WE WANT WE HAVE TO SELL OTHERS SAYS 50YEAROLD TONY DAVIS THE FORMER PRESIDENT OF THE PEN COLLECTORS OF AMERICA TO BE SURE THIS IS NO HOBBY FOR THE PENURIOUS A PROHIBITION FAVORITE ED FINGERMAN A MIDDLEAGED REALESTATE ATTORNEY FROM NEW YORK SAYS HIS PARKER AZTEC INDIAN PEN WITH ITS ELABORATE DRAWINGS OF INDIANS AND AZTEC SYMBOLS ON THE CASE IS WORTH 40000 ANOTHER HOT COMMODITY IS THE HEAVY EIGHTINCH WATERMAN GIANT SAFETY PEN DESIGNED FOR US COURTROOM STENOGRAPHERS WHO NEEDED A PEN THAT COULD WRITE FOR HOURS WITHOUT A REFILL DURING PROHIBITION HOWEVER THE PENS' LARGE RESERVOIRS CAME IN HANDY FOR LIQUIDS OTHER THAN INK BETWEEN 1903 AND 1925 AS MANY AS 10000 OF THESE PENS ROLLED OFF PRODUCTION LINES TODAY ONE SELLS FOR AROUND 14000 AFTER PAYING THESE HIGH PRICES THERE'S STILL SOMETHING ONE SHOULD NEVER DO WITH AN ANTIQUE FOUNTAIN PEN WRITE THE INK CORRODES THE RUBBER RESERVOIR INSIDE STILL THAT DOESN'T STOP SOME PEOPLE AT PRESTIGIOUS ARTHUR BROWN & BROTHER STATIONERS IN NEW YORK DOCTORS AND LAWYERS SNATCH UP OLD PELIKANS PARKER DUOFOLDS FROM THE 1920S AND THE PARKER 51 THESE ARE PEOPLE WHO CARE ABOUT THE IMPRESSION THEY CAN PORTRAY SAYS A MANAGER IN THE PEN DEPARTMENT PERHAPS THEY ARE ALSO STUDENTS OF THE WISE BARON LYTTEN WHO WROTE BENEATH THE RULE OF MEN ENTIRELY GREAT THE PEN IS MIGHTIER THAN THE SWORD BUT MR STEINBERG FOR ONE DOESN'T EXPECT THE BUBBLE TO BURST SOON WHILE AMERICANS AND ITALIANS ARE SAID TO BE THE MOST SERIOUS AND KNOWLEDGEABLE PEN PICKERS CHINESE BUYERS FROM HONG KONG ARE SEEN AS PARTICULARLY POWERFUL AND SECRETIVE BONHAMS AUCTIONEER ALEXANDER CRUMEWING ESTIMATES THERE ARE AROUND 10 MAJOR COLLECTORS IN HONG KONG MOSTLY WEALTHY BUSINESSMEN WHO ALMOST ALWAYS BID OVER THE PHONE OR BY SENDING A COLLEAGUE WITH DETAILED INSTRUCTIONS AT BONHAMS'S OCTOBER AUCTION ONE SUCH INTERMEDIARY BOUGHT PENS TOTALING 25000 THE HONG KONG TASTE IS SAID TO BE A LARGE PLASTIC PEN FROM THE 1920S OR 1930S IN A SOCIETY WITH A TRADITIONAL APPRECIATION FOR THE ART OF WRITING AND A LONGING FOR WESTERN CULTURE FOUNTAIN PENS MAKE POPULAR GIFTS AMONG BUSINESSMEN BUT THEY ALSO APPEAR TO SELL WELL FROM THE QUANTITIES THEY'RE BUYING WE KNOW THEY SELL THEM SAYS MR CRUMEWING NO COLLECTOR WOULD BUY 50 OF THE SAME BLACK PENS 9303050146 930305 MORRISON KNUDSEN'S IBM JOBS BOISE IDAHO MORRISON KNUDSEN CORP SAID INTERNATIONAL BUSINESS MACHINES CORP EXTENDED A LONGTERM FACILITYMANAGEMENT CONTRACT FOR A TUCSON ARIZ PLANT AND EXPANDED A SIMILAR CONTRACT FOR A SAN JOSE CALIF FACILITY THE TOTAL VALUE OF THE TWO AWARDS IS ABOUT 55 MILLION THE COMPANY SAID 9303050145 930305 AMERICAN AIR TRAFFIC GAINS FORT WORTH TEXAS AMR CORP THE PARENT OF AMERICAN AIRLINES SAID AMERICAN'S FEBRUARY TRAFFIC ROSE 61 FROM A YEAR EARLIER THE AIRLINE FLEW 688 BILLION REVENUE PASSENGER MILES COMPARED WITH 648 BILLION IN FEBRUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED DECLINED TO 564 FROM 567 FOR THE FIRST TWO MONTHS OF THIS YEAR AMERICAN'S TRAFFIC INCREASED 87 TO 1453 BILLION REVENUE PASSENGER MILES FROM 1337 BILLION LOAD FACTOR ROSE SLIGHTLY TO 567 FROM 564 9303050144 930305 INTERNATIONAL TURKEY'S CONSUMER PRICE INDEX ANKARA TURKEY THE NATIONAL CONSUMER PRICE INDEX ROSE 4 IN FEBRUARY FROM JANUARY AND WAS UP 59 FROM A YEAR EARLIER TURKEY'S STATE STATISTICS INSTITUTE SAID THE INSTITUTE ALSO SAID WHOLESALE PRICES ROSE 52 IN FEBRUARY FROM JANUARY AND WERE UP 53 FROM THE LIKE YEAREARLIER PERIOD THE INSTITUTE DOESN'T GIVE ACTUAL INDEX FIGURES TURKEY'S INFLATION RATE WAS 66 LAST YEAR 9303050143 930305 UNITED AIRLINES FEBRUARY TRAFFIC CHICAGO UAL CORP'S UNITED AIRLINES SAID FEBRUARY TRAFFIC ROSE 14 TO 678 BILLION REVENUE PASSENGER MILES FROM 595 BILLIONA YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 62 FROM 595 FOR THE FIRST TWO MONTHS OF 1993 THE AIRLINE SAID IT FLEW 142 BILLION REVENUE PASSENGER MILES UP 17 FROM 121 BILLION IN THE 1992 PERIOD LOAD FACTOR WAS 624 COMPARED WITH 589 9303050141 930305 FINANCING BUSINESS DR PEPPER/SEVENUP COS DR PEPPER/SEVENUP COS OF DALLAS SAID IT CALLED FOR REDEMPTION AN ADDITIONAL 209 MILLION FACE AMOUNT OF ITS 115 SENIOR SUBORDINATED DISCOUNT NOTES DUE 2002 WITH PROCEEDS FROM THE OVERALLOTMENT OPTION OF ITS INITIAL PUBLIC OFFERING THE IPO CLOSED YESTERDAY WITH THE SALE OF 31 MILLION ADDITIONAL SHARES OF COMMON IN THE UNDERWRITERS' OVERALLOTMENT INCLUDING 15 MILLION SHARES SOLD BY A SELLING STOCKHOLDER THE SOFTDRINK COMPANY ADDED THAT IT HAS USED A PORTION OF THE PROCEEDS TO REDUCE ITS BANK DEBT OUTSTANDING REDEMPTION PRICE FOR THE NOTES WAS 64108 FOR EACH 1000 OF FACE VALUE WHICH INCLUDES ACCRUED INTEREST PREVIOUSLY THE COMPANY CALLED 1733 MILLION FACE VALUE OF THE NOTES WITH IPO PROCEEDS 9303050140 930305 BOSTON DIGITAL TO BE ACQUIRED MILFORD MASS BOSTON DIGITAL CORP AGREED TO BE ACQUIRED BY CHARTERHOUSE GROUP INTERNATIONAL INC FOR 375 A SHARE OR ABOUT 113 MILLION BASED ON ITS NEARLY THREE MILLION SHARES OUTSTANDING BOSTON DIGITAL AN INDUSTRIAL MILLING MACHINE CONCERN SAID THE SALE IS SUBJECT TO APPROVAL BY ITS SHAREHOLDERS CHARTERHOUSE IS A CLOSELY HELD NEW YORK BUYOUT AND EQUITYINVESTMENT FIRM 9303050139 930305 CONSTRUCTION ROSE 7 IN JANUARY ON PUBLIC WORKS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SURGE IN PUBLIC WORKS AND UTILITIES PROJECTS BOOSTED NEW CONSTRUCTION 7 IN JANUARY REVERSING TWO MONTHS OF DECLINE ACCORDING TO FW DODGE THE MCGRAWHILL INC FORECASTING UNIT THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS A BASE YEAR OF 100 WAS AT THE 100 LEVEL IN JANUARY BUT STILL BELOW THE RECENT HIGH OF 104 REACHED LAST OCTOBER BOTH NONRESIDENTIAL AND RESIDENTIAL BUILDING CONSTRUCTION IN JANUARY REMAINED QUITE CLOSE TO DECEMBER LEVELS HOWEVER THE OFTEN VOLATILE NONBUILDING SECTOR JUMPED 41 DUE TO THE INCLUSION OF THREE POWER PLANT STARTS IN SOUTH CAROLINA NEW YORK AND MASSACHUSETTS AND THE START OF A LARGE WASTETREATMENT FACILITY THE POWER PLANTS WITH A COMBINED VALUE OF OVER 600 MILLION TOGETHER WITH THE 178 MILLION WASTE TREATMENT FACILITY ACCOUNTED FOR 21 OF THE MONTH'S SURGE WHAT COMES THROUGH FROM JANUARY'S CONSTRUCTION DATA AFTER TAKING INTO ACCOUNT THE IMPACT OF THE MONTH'S LARGE PROJECTS IS AN INDUSTRY THAT IS HOLDING ITS OWN FOR THE MOMENT SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AT DODGE THE SHARP DECLINES FOR NONRESIDENTIAL BUILDING APPEAR TO BE OVER WHILE HOUSING IS TAKING A BREATHER FROM THE STRONG GAINS OF RECENT MONTHS NONRESIDENTIAL CONSTRUCTION EDGED UP 3 REFLECTING A REBOUND IN CONSTRUCTION OF SCHOOLS HOSPITALS DETENTION FACILITIES PASSENGER TERMINALS AND OTHER INSTITUTIONS DODGE SAID THE REBOUND WAS WELCOME BECAUSE THIS SECTOR HAD SLIPPED FROM ITS EARLIER STRENGTH AS 1992 PROCEEDED DUE TO FINANCIAL WEAKNESS AT STATE AND LOCAL LEVELS IN RECENT MONTHS THE INSTITUTIONAL BUILDING SECTOR HAD PARTLY OFFSET THE SEVERE WEAKNESS IN COMMERCIAL BUILDING OFFICE CONSTRUCTION IN JANUARY REMAINED HIGHLY DEPRESSED AND NEW STORE PROJECTS FELL FROM THE IMPROVEMENT SHOWN AT THE END OF 1992 RESIDENTIAL CONSTRUCTION IN JANUARY RECEDED 2 WITH SINGLE FAMILY HOUSING EASING BACK FROM DECEMBER'S ROBUST LEVEL WHILE MULTIFAMILY HOUSING REMAINED CLOSE TO THE VERY WEAK LEVELS REPORTED OVER THE PAST YEAR HOME BUILDING IS STILL AN ESSENTIAL PART OF THE CONSTRUCTION RECOVERY SAID MR MURRAY IT IS LIKELY THAT THE RECENT MORTGAGE RATE REDUCTIONS WILL ENABLE SINGLE FAMILY HOUSING TO ONCE AGAIN LEAD THE INDUSTRY AS A WHOLE AMONG REGIONS THE SOUTH ATLANTIC WAS THE ONLY ONE TO SHOW CONSIDERABLE GROWTH REGISTERING A 20 GAIN THE NORTH CENTRAL DOWN 18 AND THE WEST DOWN 11 SHOWED SIGNIFICANTLY WEAKER VOLUMES 9303050138 930305 INTERNATIONAL EUROPEAN AUTO MAKERS BRACING FOR DOWNTURN PLAN BIG JOB CUTS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA WESTERN EUROPE'S LARGEST EMPLOYER THE AUTO INDUSTRY IS ABOUT TO GET A LOT SMALLER EXECUTIVES OF THE LEADING EUROPEAN CAR MAKERS PAINTED A DISMAL PICTURE AT THE AUTO SHOW HERE THIS WEEK THIS YEAR'S SALES ARE LIKELY TO DECLINE BY 7 TO 10 FROM 1992'S NEARRECORD OF 134 MILLION CARS THEY SAY BRACING THEMSELVES AUTO MAKERS ARE RAPIDLY SHORTENING PRODUCTION SCHEDULES AND SLATING MORE JOB CUTS TENS OF THOUSANDS OF THEM LAST YEAR EVEN THOUGH SALES WERE BOOMING EUROPEAN CAR MAKERS ELIMINATED 40000 TO 50000 JOBS IN AN EFFORT TO MAKE THEMSELVES MORE COMPETITIVE ESTIMATES DRI/MCGRAWHILL A CONSULTING GROUP THIS REDUCED THE INDUSTRY'S EMPLOYMENT TO ABOUT 137 MILLION AT THE END OF 1992 NOW THAT PROCESS IS EXPECTED TO ACCELERATE A RECESSION MEANS YOU DON'T NEED ALL OF YOUR WORKERS SAYS JOHN LAWSON AN INDUSTRY ANALYST FOR DRI AND IT MEANS YOU CAN GET THE STRUCTURAL CHANGES PAST THE UNIONS DRI PREDICTS JOB LOSSES TOTALING 50000 TO 60000 THIS YEAR AND FORECASTS THAT INDUSTRY EMPLOYMENT WILL SHRINK TO ABOUT 12 MILLION BY THE END OF 1995 GERMANY WHOSE POWERHOUSE ECONOMY IS SUDDENLY CONTRACTING IS EXPECTED TO BE HARDEST HIT GERMANY HAS NEVER FACED A SITUATION LIKE THIS SINCE THE END OF THE WAR OBSERVES DANIEL T JONES A PROFESSOR AT CARDIFF BUSINESS SCHOOL AND A CONSULTANT TO THE AUTO INDUSTRY SINCE THEN THE GERMAN INDUSTRY HAS CONTINUED TO HIRE PEOPLE IN EACH DECADE AND NOW THEY WILL PAY THE PRICE PROF JONES SAYS THAT THE BRITISH FRENCH AND ITALIAN AUTO INDUSTRIES CUT BACK IN THE EARLY 1980S WHILE PAINFUL THE RECESSION MAY TURN OUT TO BE GOOD MEDICINE FOR EUROPE'S LESSTHANEFFICIENT AUTO INDUSTRY ACCORDING TO PROF JONES GERMAN AUTO MAKERS REQUIRE ABOUT 40 HOURS OF LABOR TO ASSEMBLE A CAR COMPARED WITH ABOUT 30 HOURS FOR OTHER EUROPEAN MANUFACTURERS AND ABOUT 20 HOURS IN JAPAN EUROPEAN CAR PLANTS EMPLOY ABOUT 150000 MORE ASSEMBLY WORKERS THAN WOULD BE NECESSARY IF THEY WERE AS EFFICIENT AS THE JAPANESE LUDVIGSEN ASSOCIATES LTD A LONDON CONSULTING CONCERN CALCULATES I SEE THE EUROPEAN MANUFACTURERS TAKING ADVANTAGE OF THE SITUATION TO PUSH THEIR RESTRUCTURING SAYS KARL LUDVIGSEN MANAGING DIRECTOR OF THE FIRM YESTERDAY FERDINAND PIECH CHAIRMAN OF VOLKSWAGEN AG EUROPE'S BIGGEST CAR MAKER WARNED EMPLOYEES THAT AN EXPECTED 20 DROP IN THE GERMAN CAR MARKET WAS LIKELY TO HIT THE COMPANY'S VW AND AUDI BRANDS HARD VW WILL ATTEMPT TO REMAIN IN THE BLACK IN 1993 HE SAID BY SLASHING ITS INVESTMENT PROGRAM IN HALF AND BY CUTTING EMPLOYMENT VW PLANS TO REDUCE ITS WORLDWIDE EMPLOYMENT BY 35000 IN THE NEXT TWO TO THREE YEARS FROM THE CURRENT 265000 SAYS DANIEL GOEUDEVERT DEPUTY CHAIRMAN OF VOLKSWAGEN AG SOME 12500 VW JOBS WOULD BE CUT IN GERMANY ALONE FORD MOTOR CO'S EUROPEAN UNIT MEANWHILE IS IN THE MIDST OF A 10000JOB CUTBACK GENERAL MOTORS CORP EXPECTS TO ELIMINATE ABOUT 3500 JOBS THIS YEAR AT ITS EUROPEAN OPERATIONS THOUGH IT EXPECTS THAT BUSINESS TO REMAIN COMFORTABLY IN THE BLACK GM EUROPE SAYS IT IS MAKING GREAT STRIDES IN IMPROVING PRODUCTIVITY BUT DAVID J HERMAN CHAIRMAN OF GM'S ADAM OPEL AG UNIT IN GERMANY SAYS THAT IT'S CLEAR THE NUMBERS OF OPEL WORKERS MUST STILL GO DOWN BY 7000 TO 10000 OVER THE NEXT FOUR OR FIVE YEARS RENAULT SA PLANS TO CUT AT LEAST 2000 PERMANENT JOBS THIS YEAR IN ADDITION TO DISMISSING TEMPORARY WORKERS CUTTING OVERTIME AND IDLING PLANTS PRESIDENT LOUIS SCHWEITZER EXPECTS RENAULT TO CONTINUE WORK FORCE CUTS OF 4 OR 5 A YEAR AT LEAST UNTIL THE END OF THE DECADE WHILE THE AUTO MAKERS MAINTAIN THAT MANY OF THOSE POSITIONS WILL BE ELIMINATED THROUGH ATTRITION AND SPECIAL EARLYRETIREMENT OR OTHER INCENTIVE PACKAGES THAT CLEARLY WON'T BE ENOUGH FORD OF EUROPE FOR ONE ACKNOWLEDGES THAT 90 OF THE JOB CUTS IN ITS PRESENT RESTRUCTURING PROGRAM WILL REQUIRE LAYOFFS WHILE NOBODY IS HAPPY ABOUT THIS THE AUTO EXECUTIVES MAINTAIN THAT THE RESPONSE FROM THEIR LABOR UNIONS HAS BEEN MOSTLY MUTED THE UNIONS UNDERSTAND OUR POLICY AND KNOW THAT TO MAINTAIN NOT JUST JOBS BUT WORK THEY ARE OBLIGED TO STAY COMPETITIVE SAYS JACQUES CALVET THE CHAIRMAN OF PSA PEUGEOTCITROEN EVEN AT BAYERISCHE MOTOREN WERKE AG WHICH HAS BEEN MOSTLY IMMUNE TO THE WEAKENING MARKET BECAUSE OF ITS NEW MODELS' POPULARITY THE WORKERS ARE NERVOUS SAYS EBERHARD VON KUENHEIM BMW'S CHAIRMAN SINCE THE GERMAN ECONOMY STARTED TO SLOW HE SAYS ABSENTEEISM IN BMW PLANTS HAS DECLINED TO ABOUT 4 FROM 75 OR 8 BEFORE FIAT SPA EUROPE'S NO 4 AUTO MAKER LAST YEAR SAYS IT IS COPING WITH THE DOWNTURN THROUGH TEMPORARY PLANT CLOSINGS THROUGH WHICH IT CUT JANUARY AND FEBRUARY PRODUCTION 15 BUT A SPOKESMAN SAYS FIAT HOPES TO AVOID PERMANENT EMPLOYMENT CUTS FOR INSTANCE LAST YEAR RATHER THAN CLOSING TWO SMALL OLD ASSEMBLY PLANTS FIAT SOLD ONE TO A PARTS MAKER AND MADE MOST OF THE OTHER ONE AVAILABLE TO OTHER PARTS MAKERS VW IS EXPECTED TO OUTLINE A SWEEPING RESTRUCTURING PROGRAM LATER THIS MONTH WE ARE AT THE POINT IN THIS COMPANY'S HISTORY WHERE WE CAN MAKE A DECISION SAYS MR GOEUDEVERT THE DEPUTY CHAIRMAN LET'S RATIONALIZE REDUCE OPTIMIZE THE BREAKEVEN POINT OF THE COMPANY WHILE VW'S MR GOEUDEVERT DECLARES THAT IT'S A CRISIS IN THE GREEK SENSE OF THE WORD THAT WE MUST MAKE A DECISION HE MAINTAINS WE KNOW THE PROBLEMS WHAT NEEDS TO BE DONE AND THE MAGNITUDE IS KNOWN SO NOW WE MUST GET TO WORK 9303050137 930305 TECHNOLOGY EPA ISSUES FINAL RULE LOWERING EMISSIONS OF DIESELFUEL BUSES WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY ISSUED A FINAL RULE REQUIRING NEW DIESELFUELED BUSES TO REDUCE EMISSIONS OF SOOT THE REGULATION LIMITS TOXICPARTICULATE EMISSIONS FROM NEW BUSES TO 005 GRAMS PER BREAKHORSEPOWERHOUR DOWN FROM THE CURRENT LIMIT OF 01 G/BHPHR THE UNIT GRAMS PER BREAKHORSEPOWERHOUR MEASURES THE QUANTITY OF SOOT EMITTED IN RELATION TO THE AMOUNT OF ENERGY EXPENDED BY THE BUS ENGINE EPA ADMINISTRATOR CAROL BROWNER PUBLICIZED THE RULE ADOPTED UNDER THE 1990 CLEAN AIR ACT BY TAKING REPORTERS ON A BUS RIDE TO A WASHINGTON GARAGE WHERE CLEAN CITY BUSES ARE HOUSED THE FINAL RULE WASN'T SUBSTANTIALLY DIFFERENT FROM A PROPOSAL ISSUED BY THE BUSH ADMINISTRATION IN 1991 SOOT EMISSION FROM DIESEL BUSES HAS BEEN REGULATED ONLY SINCE 1988 WHEN THE EPA SET THE LEVEL AT 06 G/BHPHR COMPARED WITH THE AVERAGE EMISSION OF 08 G/BHPHR AT THE TIME SINCE THEN IMPROVEMENTS IN DIESEL ENGINE TECHNOLOGY HAVE ALLOWED THE FEDERAL GOVERNMENT TO SET MORESTRINGENT STANDARDS THE DIESEL ENGINE PEOPLE HAVE DONE WAY BETTER THAN WE THOUGHT THEY COULD DO SAID DICK WILSON DIRECTOR OF THE EPA'S MOBILE SOURCE OFFICE AT FIRST SAID MR WILSON IT APPEARED THE ONLY WAY TO MEET THE NEW STANDARD WOULD BE THROUGH ADOPTION OF TRAP OXIDIZERS THAT CAPTURE HOLD AND INCINERATE PARTICULATES RELEASED BY ENGINES AT A COST OF 15000 PER BUS NOW HOWEVER ENGINE MANUFACTURERS HAVE IMPROVED THE COMBUSTION PROCESS OF THE ENGINES TO THE POINT THAT THE REQUIRED PARTICULATE LEVEL MIGHT BE MET BY USING CATALYSTS THAT COST 1000 TO 2000 PER BUS 9303050135 930305 REVIEW & OUTLOOK EDITORIAL ASIDES CORRECTION IN OUR MARCH 2 REVIEW & OUTLOOK ON REP HAROLD FORD'S BRIBERY TRIAL WE STATED THAT HIS 1990 TRIAL DEADLOCKED AFTER EIGHT WHITE JURORS VOTED TO CONVICT AND FOUR BLACK JURORS VOTED TO ACQUIT THE ACTUAL BREAKDOWN WAS EIGHT BLACK JURORS VOTING TO ACQUIT AND FOUR WHITE JURORS VOTING TO CONVICT 9303050134 930305 WHO'S NEWS TOSCO PRESIDENT RESIGNS STAMFORD CONN TOSCO CORP SAID JOHN J LEE PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR RESIGNED FROM THOSE POSITIONS THE REFINER OF PETROLEUM PRODUCTS SAID MR LEE 56 YEARS OLD ALSO RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS SUBSIDIARY SEMINOLE FERTILIZER CORP WHICH TOSCO RECENTLY AGREED TO SELL MR LEE SAID HE WAS RETURNING TO HIS VENTURE CAPITAL BUSINESS I'M NOT A CAREER MANAGEMENT PERSON HE SAID NOTING THAT TOSCO WAS WELL POSITIONED TO IMPLEMENT ITS NEARTERM STRATEGIC OBJECTIVES HE SAID HE ALSO RESIGNED TO SPEND MORE TIME AS A MAJOR FUND RAISER FOR YALE UNIVERSITY'S CAPITAL FUND DRIVE THOMAS D O'MALLEY 51YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS NAMED PRESIDENT THE COMPANY'S BOARD IS NOW REDUCED TO SEVEN MEMBERS 9303050133 930305 FINANCING BUSINESS TEXACO INC TEXACO INC WHITE PLAINS NY SAID ITS TEXACO CAPITAL INC FINANCE SUBSIDIARY PLANS TO SELL 200 MILLION OF 50YEAR DEBENTURES IN A PUBLIC OFFERING THE OIL COMPANY SAID THE SECURITIES WHICH WILL MATURE MARCH 1 2043 WILL BE OFFERED AT 98839 OF PAR WITH AN INTEREST COUPON RATE OF 75 PROCEEDS WILL BE USED FOR WORKING CAPITAL PAYING DEBT AND GENERAL CORPORATE PURPOSES IT ADDED THE SALE IS BEING MANAGED BY SALOMON BROTHERS INC 9303050132 930305 INTERNATIONAL BARCLAYS POSTS FIRST LOSS EVER CUTS DIVIDEND BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BARCLAYS PLC BRITAIN'S LARGEST CLEARING BANK ANNOUNCED A MASSIVE 242 MILLION 3509 MILLION PRETAX LOSS FOR 1992 THE FIRST IN ITS 97YEAR HISTORY AND SLASHED ITS DIVIDEND BY 28 IN A BID TO SHORE UP CAPITAL RATIOS THE DEFICIT WHICH COMPARED WITH A PRETAX PROFIT OF 533 MILLION IN 1991 WAS SUBSTANTIALLY LARGER THAN ALL BUT THE MOST PESSIMISTIC OF ANALYSTS' PREDICTIONS BARCLAYS SHARES FELL NEARLY 10 ON THE LONDON STOCK EXCHANGE TO 392 PENCE FROM 433 PENCE ON THE NEWS BARCLAYS SAID THE RESULTS WERE DUE TO RECORD PROVISIONS FOR LOSSES ON BAD AND DOUBTFUL LOANS UP 45 AT 25 BILLION MANY OF THE LOSSES WERE ON LENDING IN THE LATE 1980S TO PROPERTY COMPANIES THAT HAVE RUN INTO DIFFICULTIES AMID BRITAIN'S RECESSION THE LIST OF BARCLAYS' PROBLEM LOANS TO BIG COMPANIES SUCH AS MOUNTLEIGH HERON AND OLYMPIA & YORK'S CANARY WHARF PROJECT AND TO A HOST OF SMALLER COMPANIES WAS ALREADY WELL KNOWN BUT THE FULL EXTENT OF THE BAD NEWS CAUGHT INVESTORS BY SURPRISE DESPITE MONTHS OF SPECULATION ABOUT A POSSIBLE DIVIDEND CUT ANALYSTS HAD MOSTLY EXPECTED THAT HOPES OF A LONGAWAITED UPTURN IN THE UK ECONOMY WOULD PROVIDE GROUNDS FOR AN UNCHANGED PAYOUT BUT BARCLAYS CHAIRMAN ANDREW BUXTON SAID EVIDENCE OF A RECOVERY STILL ISN'T STRONG ENOUGH TO JUSTIFY MAINTAINING THE DIVIDEND OUR PRESENT VIEW OF THE LEVEL OF PROVISIONS IN 1993 DOES NOT GIVE US CONFIDENCE THAT WE SHALL BE ABLE TO IMPROVE SUFFICIENTLY RAPIDLY OUR TIER 1 CAPITAL RATIO FROM RETAINED EARNINGS HE SAID THE CUT IN THE DIVIDEND TO 1515 PENCE FROM 2115 PENCE SAVED BARCLAYS APPROXIMATELY 100 MILLION THAT IT WOULD HAVE HAD TO DRAW FROM ITS RESERVES SEEKING TO PUT A BRAVE FACE ON ADVERSITY MR BUXTON WHO TOOK OVER AS CHAIRMAN AT THE START OF THIS YEAR POINTED TO AN 18 INCREASE IN GROUP OPERATING PROFIT BEFORE PROVISIONS TO 24 BILLION HE ALSO SAID HE EXPECTS PROVISIONS FOR BAD LOANS TO FALL IN 1993 ENABLING BARCLAYS TO RETURN TO PROFITABILITY THIS YEAR 9303050131 930305 TECHNOLOGY & HEALTH LEDERLE TO BOOST DONATION OF NICOTINE PATCHES TO POOR WAYNE NJ LEDERLE LABORATORIES SAID IT WOULD INCREASE ITS DONATION OF NICOTINE PATCHES TO THE POOR BY ONE MILLION UNITS AND OFFER A REBATE FOR A THIRD OF THE PATCH'S PRICE TO CASHPAYING CUSTOMERS LAST MONTH THE AMERICAN CYANAMID CO UNIT ANNOUNCED IT WOULD DONATE TWO MILLION DOSES OF PROSTEP ITS SMOKINGCESSATION THERAPY TO STATE AND LOCAL HEALTH AGENCIES THE DONATION WILL BE INCREASED TO THREE MILLION PATCHES IN ADDITION LEDERLE SAID IT WILL OFFER A REBATE FOR A THIRD OF THE 4ADAY PRICE OF THE PATCH TO CUSTOMERS WHO BEGIN THERAPY BEFORE JUNE 30 AND WHOSE PATCH PRESCRIPTIONS AREN'T COVERED BY MEDICAID OR PRIVATE HEALTH INSURANCE DEMAND FOR THE PATCH HAS FALLEN OFF DRAMATICALLY SINCE LAST SPRING AND SAYS ARVIND DESAI AN ANALYST WITH MEHTA & ISALY I SUSPECT THEY HAVE INVENTORIES ON HAND NEW PRESCRIPTIONS FOR ALL NICOTINE PATCHES FELL TO 280000 IN DECEMBER FROM 11 MILLION IN MARCH MR DESAI SAID PROSTEP'S NEW PRESCRIPTIONS HAVE FALLEN TO 31000 IN JANUARY FROM 96000 IN APRIL ACCORDING TO THE COMPANY BUT A LEDERLE SPOKESMAN DENIED THE MOVE WAS A RESPONSE TO ANY INVENTORY PROBLEM AND SAID DEMAND HAS PICKED UP RECENTLY 9303050129 930305 MARKETING SMALL REGIONAL BREWERS INJECT NEW FOAM INTO A BEER MARKET THAT HAD GONE FLAT BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE A DISTINCTIVE TASTE IS DESIRABLE FOR A BEER OR ALE UP TO A POINT PAUL SHIPMAN FOUND THAT OUT AFTER HE STARTED THE RED HOOK ALE BREWERY HERE IN 1983 THE ALE THAT HIS BREWMASTER PRODUCED HAD A TASTE ALL OF ITS OWN BUT SO FEW PEOPLE DRANK IT THAT MR SHIPMAN KNEW THEM ALL BY NAME I NOT ONLY KNEW ALL THE BARTENDERS WHO SOLD IT I KNEW ALL THE CUSTOMERS HE SAYS TODAY HAVING DEVELOPED TASTIER BEERS AND ON THE VERGE OF BUILDING A NEW 200000BARREL BREWERY THE RED HOOK PRESIDENT NO LONGER KNOWS ALL HIS CUSTOMERS AND RED HOOK ALONG WITH A HOST OF OTHER REGIONAL BREWERIES MANY OF WHICH STARTED AS SOCALLED MICROBREWERIES HAVE SENT A SMALL BUT SIGNIFICANT RIPPLE THROUGH THE LONGSTAGNANT BEER MARKET IN 1992 SMALL BREWERS SNATCHED MARKET SHARE FROM THE NATION'S BIGGEST BREWERS FOR THE FIRST TIME IN DECADES WHILE THE US BEER MARKET REMAINED ESSENTIALLY FLAT BEER SALES BY THE TOP SIX BREWERS DROPPED 05 AND BEER SALES BY ALL OTHER BREWERS GREW MORE THAN 17 ACCORDING TO BEER MARKETER'S INSIGHTS A TRADE NEWSLETTER SALES OF CRAFT BEERS BEERS MADE BY MICROBREWERIES CONTRACT BREWERS LIKE SAMUEL ADAMS MAKER BOSTON BEER CO AND EMERGING REGIONAL BREWERS LIKE RED HOOK ROSE 44 SAYS DAVID EDGAR ASSISTANT DIRECTOR OF THE INSTITUTE OF BREWING STUDIES IN BOULDER COLO BOON FOR BEER LOVERS CONTRARY TO WHAT PEOPLE WERE PREDICTING IN THE EARLIER STAGES OF THE MICROBREWERY BOOM IT'S BEEN MUCH LESS FADLIKE THAN PEOPLE THOUGHT SAYS MR EDGAR THE SHIFT IN BEER SALES ARRESTED A DECADESLONG CONSOLIDATION WHICH HAD SEEN THE NUMBER OF US BREWERS DWINDLE TO ABOUT 80 FROM 600 IN 1940 AS BIG BREWERS GOBBLED UP MARKET SHARE TODAY THERE ARE MORE THAN 700 BREWERIES A BOON NOT ONLY FOR THE BEERLOVING CONSUMER BUT FOR DISTRIBUTORS AND RETAILERS AS WELL DRIVING THIS CHANGE IS A REBIRTH OF REGIONAL PRIDE AND A SEARCH FOR COMMUNITY BARTENDERS AND BAR OWNERS SAY INUNDATED BY NEWS OF ECONOMIC WOES AND FOREIGN COMPETITION PEOPLE ARE MORE INTERESTED IN THINGS THAT ARE LOCAL SAYS JEFF EGAN WHO OPENED HIS 74TH STREET ALE HOUSE IN SEATTLE'S GREENWOOD NEIGHBORHOOD TWO YEARS AGO WITH 17 LOCAL AND REGIONAL BREWS ON TAP THE SPOT SOON BECAME A NEIGHBORHOOD GATHERING PLACE CUSTOMERS TELL US IT'S THE FIRST TIME THEY'VE TALKED TO THEIR NEIGHBORS HE SAYS THE GROWTH OF IMPORTED BEERS ALSO HELPED LOCAL BREWS GAIN ACCEPTANCE BY EDUCATING AMERICAN PALATES THAT HAD BECOME ACCUSTOMED TO LIGHT US LAGERS IMPORTS PREPARED CONSUMERS FOR THE HIGHER PRICE TAGS OF MANY MICROBREWS AND REGIONAL BEERS TOO SAYS MR EDGAR OF THE BREWING INSTITUTE DESPITE THE HIGHER PRICE THE MICROBREWS HAVE SPREAD TO TAVERNS WITH BLUECOLLAR CLIENTELE INDICATING THEIR BROADBASED POTENTIAL MARKET IN THE DOWNHOME BLUE MOON TAVERN IN SEATTLE WHERE ASHTRAYS ARE DUMPED ROUTINELY ON THE CONCRETE FLOOR SMALL REGIONAL BREWS GENERATE HALF OF THE BEER SALES SAYS BARTENDER MAGGIE MEHRHOFF WE GET EVERYBODY AND EVERYTHING IN HERE SHE SAYS DESCRIBING HER CUSTOMERS STREET PEOPLE DOCTORS LAWYERS AND INDIAN CHIEFS THE RISING TIDE IS EVEN LIFTING ONCEDYING REGIONAL BREWERIES LIKE JOSEPH HUBER BREWING CO OF MONROE WIS AND PITTSBURGH BREWING CO IN PENNSYLVANIA EMULATING THE BOOMING CRAFTBEER BUSINESS THEY ARE CATERING TO LOCAL MARKETS MAKING DARKER BEERS AND RAISING THEIR PRICES THESE COMPANIES USED TO TAKE THEIR CUES FROM THE BIG GUYS RED HOOK'S MR SHIPMAN SAYS BUT NOW THEY'RE MAKING ALES AND GETTING COMFORTABLE WITH PRODUCTS THAT DON'T REQUIRE TV ADS TAKE PITTSBURGH BREWING'S IRON CITY BEER A YEAR AGO A LOCAL INDUSTRIALIST BOUGHT THE COMPANY FROM BOND CORP HOLDINGS LTD OF AUSTRALIA IRON CITY HAD BEEN LOSING MARKET SHARE EVEN AS IT LOWERED ITS PRICES TO STAVE OFF BUDWEISER COORS AND MILLER LITE MEANWHILE PITTSBURGH BREWING WAS CONTRACT BREWING SAMUEL ADAMS FOR BOSTON BEER AND SAW IT FLYING OUT THE DOOR THE COMPANY TOOK THE LESSON AND CHANGED FOCUS RAISING PRICES AND LAUNCHING A NEW LOCALIZED MARKETING CAMPAIGN IT'S A 'BURGH THING FOR ITS IRON CITY BEERS THE CAMPAIGN STARS LOCAL FOLKS WHO MADE UP THEIR OWN COMMERCIALS ABOUT DRINKING IRON CITY IN PITTSBURGH IRON CITY SALES ROSE ABOUT 1 IN 1992 THE COMPANY'S FIRST INCREASE IN A DECADE MEANWHILE OVERALL BEER SALES IN THE STATE FELL PITTSBURGH BREWING SUBSEQUENTLY TRIED BREWING A DARKER BEER JJ WAINWRIGHT'S SELECT LAGER AND SOLD OUT IN THREE WEEKS WE'VE LEARNED THAT WE CAN LIVE ON A MARKET THAT'S WITHIN 100 MILES OF OUR FLAGPOLE SAYS MICHAEL GRAHAM PITTSBURGH BREWING'S VICE PRESIDENT OF SALES AND MARKETING THE GROWTH OF THE SPECIALTY BEER MARKET HAS RIPPLED DOWN TO DISTRIBUTORS TOO BENJ STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS NOTES THAT THE BRANDS PROVIDE BETTER MARGINS TO WHOLESALERS WHOSE PROFITS HAVE BEEN SQUEEZED BY THE BIG BREWERS' DISCOUNTING BATTLES EVEN THE BIG BREWERS ARE TAKING CUES FROM THE CRAFTBEER BOOM ADDING MORE REGIONAL BRANDS AND CREATING REGIONAL MARKETING CAMPAIGNS IN CHICAGO ANHEUSERBUSCH COS TELEVISION COMMERCIALS FEATURE PEOPLE HOLDING UP THEIR BUD LIGHTS IN LOCAL WATERING HOLES AND PHILIP MORRIS COS' MILLER BREWING UNIT BOUGHT JACOB LEINENKUGEL BREWING CO A REGIONAL WISCONSIN BREWERY WITH A STRONG LOCAL FOLLOWING TO CASH IN ON THE TREND BUT GENERALLY THE BIG BREWERS WON'T SUCCEED IN THE CRAFTBEER BUSINESS SAYS JOSEPH OWADES A SAN FRANCISCO BEER CONSULTANT THEIR BREWERIES ARE TOO LARGE FOR SMALL SPECIALTY BATCHES AND THEIR EXPERTISE IS IN MASS MARKETING WITH THEIR SMALLER KETTLES AND FLEXIBLE BREWING SCHEDULES THE SMALLER BREWERIES CAN AIM AT MARKETS AS SMALL AS NEIGHBORHOODS SAYS MR SHIPMAN RED HOOK FOR EXAMPLE CAN BREW DISTRIBUTE AND TESTMARKET A NEW BEER FOR ONLY ABOUT 5000 ABOUT WHAT THE BIG BREWERS SPEND ON A FOCUSGROUP BUDGET HE SAYS MR SHIPMAN AND HIS PARTNER GORDON BOWKER STARTED RED HOOK WITH 350000 BORROWED FROM LOCAL INVESTORS AND A PLAN TO CAPTURE WHAT MR SHIPMAN THEN THOUGHT WAS A 3000BARRELAYEAR MARKET FOR LOCAL BEERS IN THE NORTHWEST IN 1986 THE COMPANY SHIFTED FROM ITS SLOWSELLING ORIGINAL ALE TO ITS MORE POPULAR BALLARD BITTER AND THE COMPANY TOOK OFF A YEAR LATER RED HOOK OUTGREW ITS ORIGINAL BREWERY AND MR SHIPMAN RAISED ANOTHER 900000 FOR A NEW ONE IN AN OLD REDBRICK TROLLEYCAR GARAGE EVENTUALLY INCREASING ITS CAPACITY TO 70000 BARRELS A YEAR AS RED HOOK'S POPULARITY GREW THE COMPANY STARTED EXPERIMENTING WITH DIFFERENT BREWS IT NOW BREWS THREE ALES AND A PORTER YEARROUND AND A CHRISTMAS ALE IN THE FALL AND WINTER THIS YEAR THE COMPANY STARTED A BLUE LINE A PERIODIC INTRODUCTION OF EXPERIMENTAL BREWS MEANWHILE THE COMPANY'S ANNUAL SALES GROWTH HAS AVERAGED ABOUT 30 A YEAR REACHING 49000 BARRELS OR 11 MILLION IN 1992 RED HOOK IS PROFITABLE MR SHIPMAN WON'T SAY HOW PROFITABLE LARGELY BECAUSE OF ITS HIGHTECH GERMANDESIGNED BREWERY DESPITE ANHEUSERBUSCH'S ECONOMIES OF SCALE RED HOOK EMPLOYS THE SAME NUMBER OF PEOPLE PER BARREL AS THE GIANT BREWER THIS YEAR MR SHIPMAN EXPECTS RED HOOK WILL SELL 70000 BARRELS ALL THE BREWERY CAN PRODUCE SO HE IS LOOKING TO INSTITUTIONAL INVESTORS FOR 9 MILLION TO BUILD A NEW BREWERY THAT WOULD TRIPLE THE COMPANY'S CAPACITY BUT THAT DOESN'T PORTEND A NATIONAL ROLLOUT LIKE OTHER SMALLER REGIONALS MR SHIPMAN REALIZES IT'S A TOUGH WORLD IN THE LAND OF THE BEER GIANTS HE EXPECTS HIS GROWTH TO COME INSTEAD FROM DEVELOPING MORE BEERS FOR THE REGIONAL MARKET BESIDES MR SHIPMAN INSISTS THAT THE POTENTIAL US MARKET FOR SPECIALTY BEERS IS AT LEAST 1 BILLION OR ABOUT 10 OF THE MARKET COMPARED WITH ABOUT 200 MILLION TODAY AND MUCH OF THAT HE BELIEVES WILL COME OUT OF THE BIG BOYS' HIDES THE SPECIALTY DOMESTIC BREWERS ORIGINALLY DEFINED THEMSELVES AS REPLACING IMPORTS HE SAYS BUT WE ARE NOW SERVING CUSTOMERS WHO HAVE BECOME DISENCHANTED WITH BEERS PRODUCED BY THE LARGE BREWERIES 9303050128 930305 WHO'S NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK THIS BROKERAGE FIRM APPOINTED CHRIS GARAVENTE 37 YEARS OLD AS GLOBAL RISK MANAGER OF ITS TAXABLEBOND DEPARTMENT MR GARAVENTE HAD BEEN MANAGING DIRECTOR OF PAINEWEBBER'S GOVERNMENTBOND DEPARTMENT ALSO DANIEL J CALLAHAN JR 42 JOINED PAINEWEBBER AS A MANAGING DIRECTOR IN ITS TAXABLEBOND DEPARTMENT FROM AUBREY G LANSTON & CO 9303050127 930305 WHAT'S NEWS WORLDWIDE A SUSPECT WAS ARRESTED IN THE WORLD TRADE CENTER BOMBING FEDERAL AGENTS ARRESTED A MUSLIM FUNDAMENTALIST IN CONNECTION WITH THE TERRORIST ATTACK LAST FRIDAY AT NEW YORK'S TWIN TOWERS COMPLEX OFFICIALS SAID THE 26YEAROLD SUSPECT MOHAMMED SALAMEH WAS AFFILIATED WITH A NEW JERSEY MOSQUE LINKED TO A SHEIK PREVIOUSLY INVESTIGATED IN CONJUNCTION WITH THREE KILLINGS THE FBI LATE YESTERDAY WAS CONDUCTING A SERIES OF RAIDS LOOKING FOR EVIDENCE AND POSSIBLY ADDITIONAL SUSPECTS SALAMEH WAS ARRAIGNED LAST NIGHT IN FEDERAL COURT IN MANHATTAN ON CHARGES OF AIDING AND ABETTING THE BOMBING THE JERSEY CITY NJ RESIDENT WAS ORDERED HELD WITHOUT BAIL A BOSNIAN SERB LEADER RETRACTED HIS STATEMENT THAT THE US COULD BECOME A TARGET FOR TERRORISTS IF IT INTERVENES IN THE YUGOSLAV CONFLICT KARADZIC'S STATEMENT HAD BEEN ASSAILED BY UN AND US AUTHORITIES MEANWHILE UN AND BOSNIAN OFFICIALS CONDEMNED SERB FORCES FOR INTENSIFYING AN ETHNIC CLEANSING CAMPAIGN IN BOSNIA CLINTON SIGNED A 57 BILLION EMERGENCY JOBLESS BENEFITS BILL THAT EXTENDS THROUGH OCT 2 A PROGRAM GIVING JOBLESS AMERICANS UP TO ANOTHER SIX MONTHS OF ASSISTANCE ONCE THEY'VE EXHAUSTED THEIR STANDARD 26 WEEKS OF BENEFITS WITHOUT THE EXTENSION THE PROGRAM WOULD HAVE EXPIRED THIS WEEKEND THE BILL INCLUDES A PAY FREEZE FOR CONGRESS A RELIGIOUS CULT LEADER RELEASED ANOTHER CHILD FROM HIS BESIEGED COMPOUND AND CONTINUED NEGOTIATIONS WITH FEDERAL AGENTS IN WACO TEXAS A TOTAL OF 20 CHILDREN AND TWO ADULTS HAVE BEEN RELEASED SINCE THE STANDOFF BEGAN SUNDAY EIGHTEEN CHILDREN AND 90 ADULTS WERE SAID TO REMAIN INSIDE THE COMPOUND OF THE BRANCH DAVIDIAN SECT THE EPA IS INVESTIGATING WHETHER A CLEANERBURNING GASOLINE BLEND POSES A HEALTH THREAT COMPLAINTS INCLUDING HEADACHES AND NAUSEA BY ALASKAN CONSUMERS HAVE ALREADY LED TO A BAN IN FAIRBANKS OF THE MOST COMMON FORM OF SOCALLED OXYGENATED GASOLINE RUSSIAN LAWMAKERS RESISTED YELTSIN'S REQUEST FOR AN EMERGENCY SESSION OF CONGRESS NEXT WEEK WITH SOME EXPRESSING ANGER AT THE PRESIDENT'S WARNING THAT HE MIGHT TAKE EXTREME STEPS TO PROTECT REFORMS ONE HARDLINER ACCUSED YELTSIN OF PLOTTING TO IMPOSE A FASCIST DICTATORSHIP A NEW FDA REPORT URGES TIGHTER SCIENTIFIC CONTROLS ON CLINICAL TRIALS THAT ARE CONDUCTED BY MEDICALDEVICE MANUFACTURERS THE REPORT BY THE AGENCY'S COMMITTEE FOR CLINICAL REVIEW ALSO RECOMMENDS CLOSER COOPERATION BETWEEN COMPANIES AND FDA OFFICIALS IN DESIGNING THE CLINICAL TRIALS OUSTED HAITIAN LEADER ARISTIDE FAULTED US POLICY TOWARD HAITI BUT HELD OUT THE HOPE THAT HE AND CLINTON COULD SET A SPECIFIC DATE FOR RESTORING DEMOCRACY TO HAITI ARISTIDE SAID IT WAS A BIG CONTRADICTION FOR THE US TO PREVENT HAITIANS FROM FLEEING THE ISLAND NATION WHILE ALLOWING FOREIGN SHIPS TO DELIVER OIL TO THE COUP GOVERNMENT THE US AMBASSADOR TO ISRAEL SAID THAT WASHINGTON MAY HAVE TO REDUCE ITS 3 BILLION ANNUAL AID TO THAT COUNTRY WILLIAM HARROP SHARPLY CRITICIZED THE PACE OF ECONOMIC REFORM IN ISRAEL OVER 20 SOUTH AFRICAN PARTIES PLANNED TO HOLD TALKS TODAY ON ENDING APARTHEID AFTER A STALEMATE OF ALMOST A YEAR DURING THE TWODAY MEETING POLITICIANS INTEND TO ARRANGE A NEW ROUND OF CONSTITUTIONAL TALKS GERMAN LAWMAKERS BEGAN REWRITING THE COUNTRY'S LIBERAL ASYLUM LAW TO TRY TO HALT THE FLOW OF IMMIGRANTS WITH THE SUPPORT OF THE LIBERAL OPPOSITION SOCIAL DEMOCRATS PARLIAMENT IS EXPECTED TO ENACT THE STRICTER ASYLUM RULES LATE NEXT MONTH PREMIER LI PENG SAID THAT CHINA AND BRITAIN SHOULD RESUME TALKS ON HONG KONG BUT REPEATED BEIJING'S DEMAND THAT LONDON FIRST ABANDON A PLAN TO EXPAND DEMOCRACY IN THE COLONY SEPARATELY THE CHINESE GOVERNMENT REJECTED WESTERN NATIONS' CRITICISM OF ITS HUMAN RIGHTS RECORD AN ARMY OFFICER WARNED ANGOLANS TO PREPARE FOR A LONG WAR WITH UNITA REBELS AND THE GOVERNMENT URGED AN END TO THE UN BAN ON MILITARY AID TO ANGOLA MEANWHILE PARLIAMENT PASSED LEGISLATION TO ESTABLISH A CIVILIAN MILITIA 9303050126 930305 WHO'S NEWS NEW YORK STOCK EXCHANGE NEW YORK STOCK EXCHANGE THE EXCHANGE NAMED J GARY BURKHEAD 41 YEARS OLD AND RICHARD B FISHER 36 TO FILL UNEXPIRED TERMS OF TWO DIRECTORS MR BURKHEAD IS PRESIDENT OF FIDELITY MANAGEMENT & RESEARCH CO AND MR FISHER IS CHAIRMAN OF MORGAN STANLEY GROUP INC MR BURKHEAD SUCCEEDS CLIFTON R WHARTON JR NAMED DEPUTY SECRETARY OF STATE IN THE CLINTON ADMINISTRATION MR FISHER SUCCEEDS ROBERT E RUBIN NAMED ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY FIDELITY MANAGEMENT IS THE INVESTMENT ADVISER TO THE FIDELITY GROUP OF MUTUAL FUNDS THE NEW YORK STOCK EXCHANGE ELECTED J GARY BURKHEAD 51YEAROLD PRESIDENT OF FIDELITY MANAGEMENT & RESEARCH CO AND RICHARD B FISHER 56 CHAIRMAN OF MORGAN STANLEY GROUP INC TO ITS BOARD THEIR AGES WERE INCORRECTLY LISTED IN FRIDAY'S WHO'S NEWS COLUMN BASED ON INFORMATION SUPPLIED BY THE BIG BOARD 9303050125 930305 WHO'S NEWS IFINT SA IFINT SA LUXEMBOURG THE INTERNATIONAL INVESTMENT HOLDING COMPANY FOR THE AGNELLI FAMILY INTERESTS SAID THAT MARIO GARRAFFO 56 YEARS OLD ITS GENERAL MANAGER WILL RESIGN SOON TO BECOME THE MANAGING DIRECTOR OF LAZARD SPA AN ITALIAN INVESTMENT BANKING COMPANY IN MILAN MR GARRAFFO REPORTS AT IFINT TO GIOVANNI AGNELLI CHAIRMAN AND GIANLUIGI GABETTI DEPUTY CHAIRMAN AND MANAGING DIRECTOR A SPOKESMAN SAID IFINT HAS NO CURRENT PLANS TO REPLACE MR GARRAFFO AS GENERAL MANAGER 9303050124 930305 WHO'S NEWS PANIC COMES BACK TO ICN AFTER HIS EFFORT IN SERBIA COSTA MESA CALIF MILAN PANIC WHO SERVED SEVERAL MONTHS AS PRIME MINISTER OF WARTORN YUGOSLAVIA AND RAN UNSUCCESSFULLY FOR PRESIDENT OF SERBIA LATE LAST YEAR RETURNED HERE TO RESUME HIS ROLE AT TROUBLED ICN PHARMACEUTICALS INC AND ITS MAJORITYOWNED SUBSIDIARIES THE COMPANY SAID MR PANIC A SERBIAN EMIGRE WHO LEFT THE US TO ASSUME THE POST OF YUGOSLAVIA'S PRIME MINISTER LAST JULY HAD RETAINED THE POSITION AS ICN'S CHAIRMAN ON LEAVE OF ABSENCE WHILE HE WAS GONE ICN EXECUTIVES ADAM JERNEY FRED ANDREA AND RICHARD FALLIS AMONG OTHERS TOOK ON ADDITIONAL SENIOR ROLES IN MR PANIC'S ABSENCE MR PANIC IS REASSUMING ALL OF HIS PREVIOUS POSTS INCLUDING THE CHIEF EXECUTIVE OFFICER POSITION AT THE COMPANY'S THREE MAIN AFFILIATES ICN HAS BEEN SUFFERING IN LARGE PART FROM INTERNATIONAL SANCTIONS AGAINST YUGOSLAVIA WHERE THE OPERATING UNIT OF ITS SPI PHARMACEUTICALS INC UNIT HAS BEEN CUT OFF FROM RAW MATERIALS FOR MONTHS THE UNIT'S DIVIDEND WAS CUT 75 NEAR THE END OF LAST YEAR AS A RESULT 9303050123 930305 BARNETT CHAIRMAN RECEIVED PAY OF 19 MILLION IN '92 JACKSONVILLE FLA BARNETT BANKS INC CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHARLES E RICE RECEIVED MORE THAN 19 MILLION IN COMPENSATION IN 1992 INCLUDING A 677000 BONUS BECAUSE THE COMPANY EXCEEDED ITS YEARLY EARNINGS PROJECTION ACCORDING TO ITS PROXY STATEMENT BASED ON A FIVEYEAR STOCK CHART THAT WAS PROVIDED IN THIS YEAR'S PROXY FOR THE FIRST TIME HOWEVER BARNETT STILL LAGGED BEHIND BOTH THE S&P 500 INDEX AND A KEEFE BRUYETTE & WOODS INC 50 TOTAL RETURN INDEX FOR THE NATION'S TOP 50 BANKS DURING 1992 AND SEVERAL PRECEDING YEARS WE HAVE BEEN COMING OUT OF A PRETTY TOUGH TIME AND LAST YEAR'S PERFORMANCE WAS VERY GOOD SAID RUSSELL HOADLEY A BARNETT SPOKESMAN WE STUMBLED SEVERELY A COUPLE YEARS AGO AND THERE HAS BEEN A SUBSTANTIAL INCREASE IN NET INCOME AND CREDIT QUALITY HAS IMPROVED SIGNIFICANTLY THE PROXY SAID THAT MR RICE WHO IS 57 HAS HAD HIS BASE SALARY OF 685000 FROZEN SINCE 1989 AND AS PART OF THE BANK'S EFFORT TO CONTAIN EXPENSES WON'T TAKE A BASE SALARY RAISE THIS YEAR EITHER 9303050122 930305 INTERNATIONAL MACHINES BULL LOSS WIDENED IN 1992 FRANCE TO AID FIRM BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FRENCH COMPUTER MAKER CIE DES MACHINES BULL SAID ITS NET LOSS WIDENED 43 LAST YEAR AND CONFIRMED THAT THE FRENCH STATE HAS PUMPED EXTRA CASH INTO THE COMPANY TO HELP SUSTAIN IT IN A TELEPHONE INTERVIEW FROM PARIS CHIEF FINANCIAL OFFICER JACQUES LEBHAR SAID BULL'S TWO BIGGEST SHAREHOLDERS THE FRENCH STATE AND STATEOWNED FRANCE TELECOM SA HAVE INJECTED AN ADDITIONAL 245 BILLION FRANCS 4383 MILLION INTO THE COMPANY THAT'S ON TOP OF A 46 BILLIONFRANC STATE SUBSIDY GRANTED IN 1991 NEWS OF THE EXTRA STATE SUPPORT MAY REIGNITE A CONTROVERSY IN THE EUROPEAN COMPUTER INDUSTRY OVER WHETHER AID TO THE CHRONICALLY UNPROFITABLE STATECONTROLLED COMPUTER MAKER COMPLIES WITH EUROPEAN COMMUNITY COMPETITION LAW BULL'S NET LOSS FOR 1992 OF 472 BILLION FRANCS INCLUDED SPECIAL PROVISIONS OF 245 BILLION FRANCS TO COVER THE NEXT STEP IN ITS THREEYEAR CAMPAIGN TO REORGANIZE CUT COSTS AND STOP THE RED INK THIS YEAR MR LEBHAR SAID AN ORDER OF MAGNITUDE OF 3000 JOBS OR 8 OF THE WORK FORCE WILL BE CUT WORLDWIDE IN 1991 BULL'S NET LOSS OF 33 BILLION FRANCS INCLUDED SIMILAR RESTRUCTURING PROVISIONS OF 675 MILLION FRANCS DESPITE THE HUGE LOSS BULL OFFICIALS TRIED HARD TO SOUND UPBEAT EMPHASIZING THAT THE COMPANY HAS MADE PROGRESS IN REDUCING ITS OPERATING LOSS MR LEBHAR ATTRIBUTED THE IMPROVEMENT MOSTLY TO COSTCUTTING MEASURES AND IN THE US BULL HN INFORMATION SYSTEMS A BULL UNIT PURCHASED FROM HONEYWELL INC BROKE INTO THE BLACK LAST YEAR AFTER A LOSS OF ABOUT 40 MILLION IN 1991 ACCORDING TO AXEL LEBLOIS THE UNIT'S PRESIDENT AND CHIEF EXECUTIVE ON THE STATE FUNDING MR LEBHAR CALLED IT AN ADVANCE ON A FURTHER RIGHTS ISSUE THAT WILL COUNT AS EQUITY RATHER THAN DEBT ON BULL'S BALANCE SHEET MR LEBHAR SAID BULL IS PAYING MARKETRATE INTEREST TO THE STATE AND FRANCE TELECOM FOR THE 245 BILLION FRANCS LATER THIS YEAR HE SAID THE ADVANCE WILL BECOME CONVENTIONAL EQUITY WHEN BULL MAKES A FORMAL RIGHTS OFFERING TO ALL ITS SHAREHOLDERS BESIDES THE FRENCH STATE AND FRANCE TELECOM WITH A COMBINED 882 STAKE HOLDERS INCLUDE INTERNATIONAL BUSINESS MACHINES CORP WITH A 568 SHARE AND JAPAN'S NEC CORP WITH A 443 INTEREST 9303050121 930305 WHO'S NEWS UNUM CORP UNUM CORP PORTLAND MAINE THIS INSURANCE HOLDING COMPANY NAMED TWO DIRECTORS EXPANDING ITS BOARD TO 12 THE NEW DIRECTORS ARE LOIS DICKSON RICE 60 YEARS OLD AND A GUEST SCHOLAR AT THE BROOKINGS INSTITUTION AND RONALD EUGENE GOLDSBERRY 50 GENERAL SALES AND MARKETING MANAGER FOR THE PARTS AND SERVICE DIVISION AT FORD MOTOR CO 9303050119 930305 WHO'S NEWS HERCULES INC HERCULES INC WILMINGTON DEL EDITH E HOLIDAY FORMERLY ASSISTANT TO PRESIDENT BUSH AND SECRETARY OF THE CABINET WAS NAMED A DIRECTOR OF THIS CHEMICAL CONCERN GIVING THE BOARD 11 MEMBERS 9303050118 930305 WHO'S NEWS SHEARSON HIRES FOUR INVESTMENT BANKERS FROM RIVAL COMPANIES NEW YORK SHEARSON LEHMAN BROTHERS INC IN A BID TO BOLSTER ITS INVESTMENT BANKING DEPARTMENT HIRED FOUR SENIOR BANKERS FROM RIVAL BROKERAGE FIRMS SHEARSON SAID THAT HENRY LENTZ ROBERT SCULLY JOHN PRIOR AND WILLIAM WEAVER HAVE JOINED ITS LEHMAN BROTHERS INVESTMENT BANKING AND TRADING DIVISION AS MANAGING DIRECTORS A SENIOR POST SHEARSON IS A UNIT OF AMERICAN EXPRESS CO MR LENTZ 48 YEARS OLD WILL JOINTLY HEAD THE INVESTMENTBANKING NATURALRESOURCES GROUP WITH GRANT PORTER MR LENTZ PREVIOUSLY HAD BEEN A MANAGING DIRECTOR AT WASSERSTEIN PERELLA & CO MR SCULLY 43 WAS NAMED HEAD OF THE INVESTMENT BANKING INDUSTRIAL GROUP AND TO THE LEHMAN BROTHERS INVESTMENT BANKING MANAGEMENT COMMITTEE HE HAD BEEN A FOUNDING PARTNER OF SCULLY BROTHERS & FOSS MR PRIOR 36 HAD BEEN A GENERAL PARTNER AT SCULLY BROTHERS & FOSS MR WEAVER 42 WAS NAMED TO JOINTLY HEAD LEHMAN'S INVESTMENTBANKING FINANCIALSERVICES GROUP WITH JOHN HOPKINS MR WEAVER PREVIOUSLY A MANAGING DIRECTOR AT CS FIRST BOSTON GROUP'S FIRST BOSTON CORP UNIT ALSO WAS NAMED A MEMBER OF LEHMAN'S INVESTMENT BANKING MANAGEMENT COMMITTEE 9303050117 930305 A&P TO CLOSE SOME OUTLETS SOON DETROIT EIGHT FARMER JACK OR A&P GROCERY OUTLETS IN MICHIGAN WILL CLOSE BY MIDMAY IDLING ABOUT 500 EMPLOYEES A SPOKESMAN FOR GREAT ATLANTIC & PACIFIC TEA CO SAID SALES AND PROFITS HAVE BEEN DISAPPOINTING IN THESE STORES AND THEY JUST HAVEN'T BEEN MAKING A CONTRIBUTION THE SPOKESMAN SAID EMPLOYEES WITH THE MOST SENIORITY WILL BE OFFERED JOBS AT OTHER STORES BUT THERE WILL BE SOME LAYOFFS THE SPOKESMAN ADDED THE MONTVALE NJ COMPANY HASN'T DETERMINED HOW MANY PEOPLE WILL BE LAID OFF CURRENTLY A&P OPERATES 44 STORES UNDER THAT NAME IN MICHIGAN IT HAS ABOUT 1250 STORES IN THE US AND IN ONTARIO CANADA THE NEW JERSEY GROCERY CHAIN BOUGHT FARMER JACK STORES IN 1989 FOR 125 MILLION 9303050116 930305 THYSSEN STAHL TO SHED 4500 JOBS WORKERS STRIKE AT RIVAL FIRM SPECIAL TO THE WALL STREET JOURNAL DUISBURG GERMANY THE SUPERVISORY BOARD OF GERMAN STEELMAKER THYSSEN STAHL AG APPROVED THE SHEDDING OF 4500 JOBS WHILE WORKERS AT ALL STEELMAKING SITES OF RIVAL FRIED KRUPP AG HOESCHKRUPP HELD A 24HOUR STRIKE TO PROTEST IMMINENT PLANT CLOSURES THE DECISION BY THYSSEN STAHL SUPERVISORS WHICH AFFECTS WORKERS IN THE AREA OF LONG PRODUCTS ONLY CONFIRMED A RECOMMENDATION OF THE COMPANY'S MANAGEMENT THE LAYOFFS ARE PART OF A RATIONALIZATION PROGRAM WITH THE GOAL OF CUTTING A TOTAL OF 7000 JOBS THE COMPANY SAID WORKERS AT THE MERGING STEEL OPERATIONS OF HOESCHKRUPP MEANWHILE WERE HOLDING A PREVIOUSLY ANNOUNCED STRIKE AGAINST THE COMPANY'S PLANNED CLOSURE OF BLAST FURNACE OPERATIONS AT EITHER DUISBURGRHEINHAUSEN OR DORTMUND THE IG METALL TRADE UNION REPORTED THAT WORK HAD STOPPED AT ALL THE GROUP'S STEEL OPERATIONS YESTERDAY AND WOULD REMAIN THAT WAY UNTIL TODAY WORKPLACES AT MANY SITES HAVE BEEN OCCUPIED AN IG METALL SPOKESMAN ESTIMATED PARTICIPATION BY 10000 WORKERS ACROSS THE STATE OF NORTH RHINEWESTPHALIA 9303050115 930305 ECONOMY FACTORY ORDERS DECLINED 13 DURING JANUARY BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WIDE SWINGS IN AIRCRAFT BOOKINGS LED TO A SHARP DROP IN NEW FACTORY ORDERS IN JANUARY FOLLOWING THEIR ROBUST JUMP IN DECEMBER NEW GOVERNMENT FIGURES SHOW ORDERS IN JANUARY FELL 13 TO 255 BILLION THE COMMERCE DEPARTMENT SAID AFTER RISING A REVISED 61 IN DECEMBER ALTHOUGH THE JANUARY DECLINE WAS THE SHARPEST SINCE AUGUST THE DECEMBER INCREASE HAD BEEN THE LARGEST IN A YEAR AND A HALF A MAJOR FACTOR IN BOTH CASES WAS THE TRANSPORTATIONEQUIPMENT CATEGORY WHICH FELL IN JANUARY AFTER A BIG RISE THE MONTH BEFORE EXCLUDING TRANSPORTATION EQUIPMENT NEW ORDERS DECREASED 01 IN JANUARY AND INCREASED 36 IN DECEMBER ANALYSTS SAID THE DECLINE IN ORDERS SUGGESTS A MORE SUBDUED PACE OF ECONOMIC GROWTH THAN IN THE FOURTH QUARTER WHEN THE GROSS DOMESTIC PRODUCT ROSE AT A 48 ANNUAL RATE IN ANOTHER INDICATION OF UNEVEN ECONOMIC GROWTH THE LABOR DEPARTMENT REPORTED THAT 351000 PEOPLE FILED FIRSTTIME CLAIMS FOR UNEMPLOYMENT BENEFITS IN THE WEEK ENDED FEB 20 UP 26000 FROM A WEEK EARLIER HOWEVER THE FOURWEEK AVERAGE OF NEW CLAIMS USUALLY REGARDED AS A BETTER GAUGE OF THE JOB MARKET FELL TO 334250 THE LOWEST SINCE SEPTEMBER 1989 IN TESTIMONY BEFORE THE HOUSE BUDGET COMMITTEE LABOR SECRETARY ROBERT REICH CALLED THE LATEST ECONOMIC DATA NOT ALL THAT ENCOURAGING SUGGESTING THAT CONGRESS SHOULD MOVE QUICKLY TO PASS PRESIDENT CLINTON'S ECONOMIC PLAN MANUFACTURING ACTIVITY APPEARS TO HAVE SLOWED IN FEBRUARY HOME SALES TOOK A BIG DROP IN JANUARY AND THE GOVERNMENT'S GAUGE OF FUTURE ECONOMIC GROWTH SUGGESTS IT WILL BE SLOW DESPITE THE MIXED FIGURES ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST CO SAID I STILL THINK THE ECONOMY'S ON THE MOVE IN ITS REPORT ON FACTORY ORDERS THE COMMERCE DEPARTMENT SAID UNFILLED ORDERS EDGED UP 04 TO 4747 BILLION THE THIRD RISE IN THE PAST FOUR MONTHS FOLLOWING A SLIDE OF 13 MONTHS IN A ROW MOUNTING BACKLOGS INDICATE THAT FACTORY WORK FORCES AREN'T KEEPING PACE WITH DEMAND INVENTORIES SHRANK 02 TO 37803 BILLION DECLINING FOR THE FIFTH STRAIGHT MONTH AND SETTLING AT THEIR LOWEST AMOUNT IN FOUR YEARS RISING BACKLOGS AND FALLING INVENTORIES SHOULD STIMULATE MORE PRODUCTION PERHAPS AS MUCH AS A 45 INCREASE THIS YEAR IN MANUFACTURING OUTPUT ACCORDING TO A RECENT SURVEY OF ABOUT 100 EXECUTIVES OF THE NATIONAL ASSOCIATION OF MANUFACTURERS WHILE ABOUT HALF OF THOSE SURVEYED INTEND TO ENLARGE THEIR WORK FORCES A BIT BY ADDING SOME JOBS ON THE FACTORY FLOOR AND IN SALES AND SERVICES MANY WILL CONTINUE A RECENT TREND OF RELYING ON MORE OVERTIME NOT MORE WORKERS TO BOOST PRODUCTION AT PRESENT THE AVERAGE WORKWEEK IN MANUFACTURING IS 414 HOURS THE HIGHEST LEVEL IN MORE THAN 25 YEARS FIGURES IN BOTH REPORTS HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED