LOS ANGELES REUTER FORD MOTOR CO AGREED TO PAY LEGENDARY JOCKEY WILLIE SHOEMAKER 1 MILLION AND PROMISED HIM A FURTHER 15 MILLION IF HE PURSUES HIS CASE AGAINST CALIFORNIA MR SHOEMAKER 60 YEARS OLD NOW A QUADRIPLEGIC RECEIVED SEVERE INJURIES WHEN HIS FORD BRONCO VEERED OFF THE ROAD AND ROLLED DOWN AN EMBANKMENT IN THE LOS ANGELES SUBURB OF GLENDORA ON APRIL 8 1991 HE SUED CALIFORNIA GLENDORA HOSPITAL AND THE SEVEN DOCTORS WHO TREATED HIM AFTER THE ACCIDENT IN ITS OFFER FORD AGREED TO PAY MR SHOEMAKER WHO NOW TRAINS HORSES FROM HIS WHEELCHAIR 900000 HIS WIFE CYNTHIA WILL GET 75000 AND HIS DAUGHTER AMANDA WILL RECEIVE 25000 IN ADDITION FORD GUARANTEED THE FORMER JOCKEY A FURTHER 15 MILLION IF MR SHOEMAKER PURSUES HIS 20 MILLION CLAIM AGAINST THE STATE WHICH HE IS SUING FOR NOT HAVING ERECTED A GUARDRAIL AT THE POINT WHERE HIS VEHICLE LEFT THE ROAD ACCORDING TO THE OFFER MADE IN LEGAL PAPERS SUBMITTED TO THE LOS ANGELES SUPERIOR COURT FRIDAY IF MR SHOEMAKER LOSES HIS CASE AGAINST THE STATE FORD WILL PAY HIM THE 15 MILLION IF HE WINS FORD WILL MAKE UP ANY DIFFERENCE BETWEEN THE JURY'S AWARD AND THE 15 MILLION MR SHOEMAKER DIDN'T SUE FORD BUT A SPOKESMAN FOR FORD WHICH CONTENDS THAT THE BRONCO VEHICLE WASN'T AT FAULT SAID THE COMPANY SETTLED WITH MR SHOEMAKER TO AVOID THE POTENTIAL COSTS AND NEGATIVE PUBLICITY OF A POSSIBLE SUIT FORD HAS ALREADY SETTLED MORE THAN 100 SUITS CONTENDING THAT ITS BRONCO DESIGN WAS DEFECTIVE AND HAS ANOTHER 100 PENDING MR SHOEMAKER THE MOST SUCCESSFUL JOCKEY IN HORSERACING HISTORY RETIRED IN FEBRUARY 1991 SHORTLY BEFORE THE CRASH 9302220012 930222 BUSINESS BRIEF CANADIAN IMPERIAL BANK OFFICES IN EUROPE AUSTRALIA WILL BE CLOSED TO TRIM COSTS CANADIAN IMPERIAL BANK OF COMMERCE SAID IT PLANS TO CLOSE OR SELL THREE OFFICES IN EUROPE AND THREE IN AUSTRALIA THAT THE BANK DESCRIBES AS BEING MARGINALLY PROFITABLE AT BEST THE ACTIONS WHICH WILL BE TAKEN OVER THE NEXT THREE YEARS ARE PART OF A EVIOUSLY DISCLOSED COSTCUTTING PROGRAM IN WHICH THE BANK EXPECTS TO SAVE 100 MILLION CANADIAN DOLLARS US793 MILLION IN 1993 ALONE CANADIAN IMPERIAL PREVIOUSLY SAID IT WILL ELIMINATE 2500 JOBS THIS YEAR ABOUT 5 OF ITS TOTAL WORKFORCE THE OVERSEAS OFFICE CLOSINGS WILL ELIMINATE ABOUT 175 JOBS IT SAID THE BANK CANADA'S SECOND LARGEST IN TERMS OF ASSETS SAID IT WILL CONTINUE TO SERVE ITS CLIENTS IN EUROPE FROM ITS LONDON OFFICES BRANCHES IN FRANKFURT PARIS AND MILAN WILL BE CLOSED OR SOLD CANADIAN IMPERIAL SAID IT WILL NO LONGER HAVE OFFICES IN AUSTRALIA AND WILL SERVE CLIENTS IN THAT REGION FROM SINGAPORE OR NORTH AMERICA 9302220011 930222 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE ECONOMY IN THE FOURTH QUARTER OF 1992 GREW AT ITS FASTEST RATE IN FOUR YEARS BUT MANY ECONOMISTS SAY REVISED DATA WILL SHOW THE GAINS WERE EVEN BETTER THAN ORIGINALLY ESTIMATED THE GOVERNMENT INITIALLY ESTIMATED THAT THE GROSS DOMESTIC PRODUCT EXPANDED AT A 38 ANNUAL RATE IN THE FOURTH PERIOD THE BEST SINCE A 39 RATE IN THE FOURTH QUARTER OF 1988 ANALYSTS NOW SAY MORE DETAILED DATA FROM THE FOURTH QUARTER INCLUDING HIGHER CONSUMPTION EXPORTS AND INVENTORIES PORTRAY AN ECONOMY THAT GREW EVEN FASTER BRIAN JONES A SENIOR ECONOMIST AT SALOMON BROTHERS ESTIMATES A COMMERCE DEPARTMENT REPORT DUE OUT THIS WEEK WILL SHOW THE ECONOMY ACTUALLY GREW AT A 55 RATE IN THE FOURTH QUARTER WHICH WOULD BE THE BEST SINCE 59 IN THE FOURTH QUARTER OF 1987 IT WILL BE A HELL OF A LOT STRONGER THAN IT HAS BEEN IN A LONG TIME MR JONES SAID CONSUMPTION WILL BE REVISED UP AND THE NET EXPORT DEFICIT WILL BE A LOT NARROWER HE SAID 9302220010 930222 MANAGING BY AMANDA BENNETT AS TRAINING BECOMES A MORE IMPORTANT ISSUE COMPANIES FRET ABOUT HOW TO CALCULATE ITS COSTS AND BENEFITS A STUDY SPONSORED BY BRITISH AMERICAN AND CANADIAN RESEARCH GROUPS CLAIMS TO GIVE COMPANIES THE TOOLS TO CALCULATE THE FINANCIAL EFFECTIVENESS OF SPENDING ON TRAINING AND EDUCATION ESPECIALLY OF MANUFACTURING WORKERS MUCH AS THEY FIGURE THE RETURN ON BUILDING A PLANT THE EQUATIONS IN THE STUDY ENABLE ANYONE TO WORK OUT THE ACTUAL VALUE ADDED FOR MONEY SPENT ON CONTINUOUS EDUCATION OF THE WORK FORCE SAYS SIMON WEBLEY DIRECTOR OF THE BRITISHNORTH AMERICAN RESEARCH ASSOCIATION AND A COAUTHOR OF THE STUDY THE EQUATIONS DEVELOPED BY THE STUDY'S OTHER AUTHOR FREDERICK CRAWFORD VICE CHANCELLOR AT ASTON UNIVERSITY IN BIRMINGHAM ENGLAND AIM TO MEASURE HOW TRAINING INCREASES PRODUCTIVITY THEY ASSUME KNOWLEDGE DEPRECIATES OVER TIME AND BETTERTRAINED WORKERS ARE MORE ATTRACTIVE TO COMPETITORS WHICH MAY STEP UP EFFORTS TO RECRUIT THEM RICHARD BELOUS EXECUTIVE DIRECTOR OF THE NATIONAL PLANNING ASSOCIATION IN WASHINGTON A SPONSOR OF THE STUDY SAYS MANY MANAGERS LACK A RIGOROUS BASIS FOR DECISIONS ON TRAINING OUTLAYS IF I ASK A CHIEF EXECUTIVE OR CHIEF FINANCIAL OFFICER TO MAKE A DECISION ABOUT BUYING A MACHINE TOOL THEY CAN CALCULATE IT TO THE DECIMAL PLACE IF I ASK THEM IN TERMS OF HUMANRESOURCES INVESTMENTS IF THEY WERE PLUS OR MINUS A BILLION DOLLARS THEY WERE LUCKY SOME COMPANIES AGREE THE LACK OF STATISTICAL RIGOR HURTS YOU CAN PUT AN AWFUL LOT OF MONEY INTO TRAINING PROGRAMS AND AT THE END OF THE DAY NOT GET VERY MUCH OUT OF IT SAYS THOMAS H ADAMS SENIOR VICE PRESIDENT HUMANRESOURCES ADMINISTRATION AT FIRST CHICAGO BUT SOME TRAINING EXPERTS CAUTION A STATISTICAL APPROACH HAS LIMITS FOR LOWERLEVEL JOBS THE CALCULATIONS MAY BE A BURDEN SAYS LOUIS QUAST A SENIOR CONSULTANT TRAINING AND DEVELOPMENT DIVISION FOR PERSONNEL DECISIONS IN MINNEAPOLIS THE AVERAGE LINE MANAGER ROLLS HIS EYES AND SAYS GET RID OF ALL THAT STUFF I DON'T HAVE TIME TO WADE THROUGH 300 PHD DISSERTATIONS TO SEE IF I CAN MAKE A DIFFERENCE OF 001' AND THE MORE COMPLEX THE JOB AND TRAINING ARE HE ADDS THE MORE GUESSWORK IS INVOLVED IN ANY FIGURES MR WEBLEY SAYS THE STUDY'S EQUATIONS AREN'T COMPREHENSIVE BUT THEY WILL COVER A VERY LARGE AMOUNT OF TRAINING ESPECIALLY ON THE SHOP FLOOR THERE IS A LOT OF ATTENTION PAID TO MANAGEMENT TRAINING BUT IN PRACTICE THE REAL VALUE IS TO ADD TO THE VALUE OF THE PEOPLE WHO ARE TURNING THINGS OUT DAY BY DAY ONE COLLEGE IS LOOKING HOMEWARD FOR JOB LEADS RENSSELAER POLYTECHNIC INSTITUTE IN TROY NY IS SENDING LETTERS TO STUDENTS' PARENTS ASKING THEM TO ALERT THE SCHOOL TO POSSIBLE JOB OPENINGS AT THEIR EMPLOYERS WE KNOW THE WAY RECRUITING HAS BEEN HANDLED IN THE PAST TWO DECADES IS DYING SO WE'RE LOOKING AT NEW WAYS TO ATTACK THE PROBLEM SAYS VICKI LYNN DIRECTOR OF RENSSELAER'S CAREER DEVELOPMENT CENTER A BRAINSTORMING SESSION AMONG THE RENSSELAER SOCIETY OF FAMILIES A VOLUNTEER GROUP TURNED UP PARENTS AS A MAJOR UNTAPPED RESOURCE AND DECIDED TO ASK THEM TO FAX THE SCHOOL ANY LEADS THEY COME ACROSS THE GROUP'S FIRST REQUEST WAS MAILED AROUND THE HOLIDAYS TO A TEST GROUP OF 50 PARENTS IT PRODUCED ONE JOB LEAD AT JOHNSON & JOHNSON THE SCHOOL EXPANDED THE MAILING IN LATE JANUARY TO 1000 MORE PARENTS IT WAS A GREAT IDEA ON BOTH SIDES SAYS WILLIAM LARSEN PARENT OF A RENSSELAER STUDENT AND VICE PRESIDENT OF CUSTOMER SERVICE AT JOHNSON & JOHNSON WHICH NEEDS PEOPLE SKILLED IN INFORMATION SERVICES RENSSELAER IS AN EXCELLENT SOURCE OF GRADUATES IN THAT DISCIPLINE MR LARSEN SAYS THOUGH HIS SON DAVID IS IN ANOTHER FIELD FELICE SCHWARTZ WHO ROILED CORPORATE WATERS BY ADVOCATING A MOMMY TRACK CAREER PATH TO ACCOMMODATE EMPLOYEES WHO ALSO WANT TO BE MOTHERS HAS A NEW IDEA A QUIZ FOR BUSINESS LEADERS MS SCHWARTZ PRESIDENT OF CATALYST A NONPROFIT RESEARCH GROUP IN NEW YORK THAT FOCUSES ON WORKING WOMEN HAS DEVELOPED A 20ITEM QUESTIONNAIRE FOCUSING ON HOW COMPANIES TREAT THEIR WOMEN EMPLOYEES THE QUIZ INCLUDES SUCH QUESTIONS AS DO YOU TRUST A WOMAN TO BE THE CHIEF LIAISON WITH ONE OF YOUR TOP 10 CLIENTS/CUSTOMERS DO YOU SUPPORT TALENTED WOMEN WHO CHOOSE TO LIMIT THEIR CAREER PATHS TO SPEND MORE TIME WITH THEIR FAMILIES DO FEMALE AND MALE MANAGERS IN YOUR COMPANY ROUTINELY HAVE LUNCH TOGETHER SOME COMPANIES THINK THE TEST HELPS OUR AWARENESS WAS ENHANCED CONSIDERABLY SAYS BRADFORD OELMAN VICE PRESIDENT CORPORATE RELATIONS AT OWENSCORNING FIBERGLAS IN TOLEDO OHIO AFTER MS SCHWARTZ PRESENTED THE QUIZ TO OWENSCORNING OFFICIALS THE COMPANY RECRUITED MR OELMAN FOR A TASK FORCE THAT HAS SINCE RECOMMENDED A NUMBER OF STEPS LIKE SENSITIVITY TRAINING AND ENHANCED RECRUITMENT AT SCHOOLS FOR FEMALES AND MINORITIES THE QUIZ IS A GIMMICK MS SCHWARTZ SAYS BUT SHE FAVORS ANYTHING THAT WILL RAISE CONSCIOUSNESS AND PUT THE ISSUE ON THE TABLE THE MOST STRESSFUL FIELDS TO WORK IN THIS DECADE WILL BE TELECOMMUNICATIONS FINANCIAL SERVICES AND NONPROFIT GROUPS SAYS A STUDY BY HUMAN SYNERGISTICS CONSULTANTS IN PLYMOUTH MICH IT CITES GREATER JOB DEMANDS AND LACK OF RECOGNITION FOR ACHIEVEMENT THREEQUARTERS OF 726 DIRECTORS SURVEYED EXPECT TO INITIATE MORE RIGOROUS GOAL SETTING AND PERFORMANCE EVALUATION FOR TOP EXECUTIVES IN THE FUTURE SAYS KORN/FERRY ORGANIZATIONAL CONSULTING 9302220009 930222 INTERNATIONAL WASHINGTON INSIGHT DRUG WAR TACTIC SHIFTS AS CLINTON AIMS TO CURB US DEMAND INSTEAD OF SUPPLY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL WAR ON DRUGS ISN'T OVER BUT THE US SOON MAY PULL BACK SOME OF ITS SUPPORT FOR FORMER PRESIDENT BUSH TRYING TO WIPE OUT LATIN AMERICA'S COCAINE KINGS WAS SOMETHING BETWEEN A GRUDGE MATCH AND A POLITICAL CRUSADE BUT PRESIDENT CLINTON'S SENIOR AIDES DOUBT THAT EFFORTS TO CUT OFF THE SUPPLY OF DRUGS AT THE SOURCE CAN WORK THEY PLAN TO FOCUS THEIR EFFORTS ON CONTROLLING DEMAND FOR DRUGS AT HOME MOREOVER UNDER ORDERS BY THE PRESIDENT TO REDUCE US SPENDING OVERSEAS THE ADMINISTRATION IS EXPECTED TO MAKE DEEP CUTS IN MILITARY TRAINING AND AID FOR GOVERNMENTS OF THE KEY COCAINE PRODUCING STATES IN SOUTH AMERICA AND THE TRANSSHIPMENT STATES IN CENTRAL AMERICA AID TO ISRAEL AND EGYPT IS SACROSANCT AND THERE SIMPLY ISN'T MUCH ROOM TO REDUCE ANYTHING ELSE SAYS A TOP STATE DEPARTMENT AIDE IN FISCAL YEAR 1993 THE BUSH ADMINISTRATION COMMITTED ABOUT 200 MILLION IN ECONOMIC AND MILITARY ASSISTANCE TO SUPPORT THE ANTIDRUG BATTLE IN THE ANDEAN STATES DRUG EXPERTS DISAGREE OFTEN VIGOROUSLY ABOUT WHETHER A CUTBACK IN US EFFORTS ABROAD WILL AFFECT DRUG CONSUMPTION AT HOME BUT MOST THINK THE POLITICAL COSTS COULD BE DANGEROUSLY HIGH IF WHAT YOU'RE WORRIED ABOUT IS A LOT MORE AMERICANS SNORTING COCAINE IT DOESN'T REALLY MATTER SAYS MARK KLEIMAN OF HARVARD'S KENNEDY SCHOOL OF GOVERNMENT BUT IF YOU'RE WORRIED ABOUT BOLIVIA OR GUATEMALA BEING TAKEN OVER BY A BUNCH OF THUGS THEN THE ISSUE IS A VERY SERIOUS ONE FOR ALL THE SPECULATION THE ADMINISTRATION HAS SAID ALMOST NOTHING ABOUT ITS DRUG STRATEGY IT HAS YET TO NAME A NEW DRUG CZAR AND THE DRUG CZAR'S OFFICE WHICH IS SEEN BY ITS CRITICS AS A POLITICAL SINECURE BUT HAS BEEN A LONGTIME PROPONENT OF SUPPLYORIENTED PROGRAMS LOST 121 OF 146 MEMBERS IN WHITE HOUSE STAFF CUTBACKS IN ANNOUNCING THE CUTS WHITE HOUSE CHIEF OF STAFF THOMAS F MCLARTY SAID PRESIDENT CLINTON BELIEVES THAT RESOURCES TO FIGHT THE DRUG PROBLEM SHOULD GO TO EDUCATION TO TREATMENT AND TO ENFORCEMENT AT THE STATE AND LOCAL LEVEL THERE WAS NO MENTION OF THE INTERNATIONAL FIGHT THERE ARE OTHER SIGNS OF DECLINING INTEREST THE STATE DEPARTMENT'S BUREAU FOR INTERNATIONAL NARCOTICS MATTERS WILL BE FOLDED INTO A NEW BUREAU THAT ALSO WILL BE RESPONSIBLE FOR TERRORISM AND INTERNATIONAL CRIME DUBBED DRUGS AND THUGS AND THE BUDGETSQUEEZED PENTAGON WHICH ONCE HOPED TO FIND A NEW SOURCE OF FUNDS BY JOINING THE DRUG WAR IS EXPECTED TO SHRINK ITS DRUG ENFORCEMENT OFFICE BUT THE MOST IMPORTANT CHANGE MAY BE ONE OF RHETORIC AND SYMBOLISM PRESIDENT BUSH HOSTED AN INTERNATIONAL DRUG SUMMIT AND NEVER MISSED AN OPPORTUNITY TO MAKE SPEECHES ABOUT THE PROBLEM MR CLINTON HAS SAID ALMOST NOTHING THAT APPARENT INDIFFERENCE IS CERTAIN TO BE NOTED IN LATIN AMERICA SAYS JOHN WALTERS WHO RECENTLY RESIGNED AS ACTING DIRECTOR OF THE DRUG CZAR'S OFFICE THE PEOPLE TAKING THE RISK HAVE GOT TO WORRY WHETHER THE US IS STILL A RELIABLE PARTNER HE SAYS IS THIS THE DRUG WAR'S VERSION OF VIETNAM WILL AN AMERICAN RETREAT REALLY MAKE A DIFFERENCE RECREATIONAL USE OF COCAINE BEGAN DROPPING SHARPLY IN THE MID1980S EVEN BEFORE THE START OF THE BUSH ADMINISTRATION'S ANDEAN STRATEGY A RESULT IN PART OF THE DEMAND ORIENTED JUST SAY NO EDUCATIONAL CAMPAIGN AS FOR SUPPLYORIENTED PROGRAMS AFTER FOUR YEARS OF HEAVY US FINANCING OF THE DRUG WAR IN LATIN AMERICA PRODUCTION OF COCAINE HAS GROWN TO AN ESTIMATED 742 METRIC TONS LAST YEAR FROM 674 METRIC TONS IN 1989 BUT THE AMOUNT OF COCAINE SEIZED HAS INCREASED MORE TO NEARLY 350 METRIC TONS FROM 219 METRIC TONS IN 1989 US OFFICIALS BELIEVE THAT THE AMOUNT OF COCAINE AVAILABLE IN THIS COUNTRY HAS DROPPED SIGNIFICANTLY OVER THE PAST FOUR YEARS IF YOU STOP WORKING WITH THE LATIN AMERICANS IT COULD MEAN 150 MORE TONS OF COCAINE ENTERING THE UNITED STATES SAYS MR WALTERS WHO ALSO SAYS THE TRENDS IN PRODUCTION AND CULTIVATION ARE TURNING AROUND AS GOVERNMENTS IN LATIN AMERICA GET TOUGHER ON THEIR TRAFFICKERS HARVARD'S MR KLEIMAN QUESTIONS BOTH THE NUMBERS AND THE LOGIC BEHIND THOSE OFFICIAL ESTIMATES WHAT HAPPENS WHEN WE SEIZE A TON OF COCAINE IN PERU HE ASKS DOES THAT MEAN ONE LESS TON GOING INTO THE UNITED STATES OF COURSE NOT THAT TON IS REPLACED AT SLIGHTLY MORE COST PERHAPS BUT IT'S REPLACED THERE'S AS MUCH COCAINE AVAILABLE IN THE WORLD AS ANY AMERICAN CONSUMER COULD EVER WANT FOR NOW THE DRUG ENFORCEMENT COMMUNITY IN THE US AND ABROAD IS WAITING FOR SOME SIGNAL FROM THE NEW PRESIDENT OF HIS INTENTIONS REP CHARLES RANGEL A NEW YORK DEMOCRAT AND CHAIRMAN OF THE SELECT COMMITTEE ON NARCOTICS SAYS HE WAS DISAPPOINTED THAT THE PRESIDENT DIDN'T SPECIFICALLY MENTION DRUG ABUSE IN HIS ADDRESS TO CONGRESS LAST WEEK LATIN AMERICANS PARTICULARLY NEED TO KNOW ABOUT THE PRESIDENT'S PLANS HE SAYS 9302220008 930222 FED'S GREENSPAN TAKES POSITIVE VIEW OF CLINTON'S STRATEGY TO REDUCE DEFICIT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN DESCRIBED PRESIDENT CLINTON'S DEFICITREDUCTION PLAN AS SERIOUS CREDIBLE AND DETAILED BUT WOULDN'T SAY IF THE FED WILL KEEP INTEREST RATES LOW IF IT IS ADOPTED TESTIFYING BEFORE THE SENATE BANKING COMMITTEE FRIDAY MR GREENSPAN SATISFIED NEITHER REPUBLICANS WHO SOUGHT TO EXTRACT CRITICISM OF THE CLINTON ECONOMIC PLAN NOR DEMOCRATS WHO SOUGHT TO EXTRACT PROMISES OF EASY CREDIT TO HELP THE PLAN SUCCEED BUT MR GREENSPAN GENERALLY PRAISED THE CLINTON PROPOSAL WHICH IS PROJECTED TO REDUCE THE DEFICIT A TOTAL OF 473 BILLION OVER THE NEXT FIVE YEARS THIS IS A CREDIBLE ENDEAVOR MR GREENSPAN SAID ADDING LATER I'M QUITE PLEASED AS I SUSPECT THE FINANCIAL MARKETS ARE THAT THIS ISSUE IS ON THE TABLE AND IS GOING TO GET RESOLVED I SUSPECT IN A POSITIVE MANNER THE CLINTON ADMINISTRATION IS CLEARLY WOOING MR GREENSPAN IT HOPES THAT THE FED WON'T RAISE RATES SOON DESPITE THE ADMINISTRATION'S PROPOSAL TO STIMULATE THE ECONOMY THIS YEAR WITH AN INCREASE IN THE DEFICIT AND THAT IT WILL KEEP RATES LOW TO CUSHION THE ECONOMY AS TAX INCREASES AND SPENDING CUTS BITE IN 1994 AND BEYOND THOUGH MR GREENSPAN SAID HE STRONGLY PREFERS SPENDING CUTS TO TAX INCREASES AS A WAY TO SHRINK THE DEFICIT HE SAID IT IS UP TO CONGRESS NOT THE FED TO DECIDE IF MR CLINTON'S PLAN RELIES TOO MUCH ON THE LATTER HOW THE DEFICIT IS REDUCED IS VERY IMPORTANT HE SAID THAT IT BE DONE IS CRUCIAL AT ONE POINT THE LONGTIME REPUBLICAN EVEN SIDED WITH WHITE HOUSE BUDGET DIRECTOR LEON PANETTA WHO HAS BEEN FENDING OFF ATTACKS FROM REPUBLICANS WHO SAY THE PLAN DOESN'T CUT SPENDING SUFFICIENTLY I HAVE CONSIDERABLE SYMPATHY FOR THE NEW DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET WHO IS SAYING THAT HE'D LIKE VERY SPECIFIC CHOICES OF WHERE SPENDING SHOULD BE CUT MR GREENSPAN TOLD SEN WILLIAM ROTH R DEL A CLINTON CRITIC A COUPLE OF SENATORS NEEDLED MR GREENSPAN FOR ACCEPTING HILLARY RODHAM CLINTON'S INVITATION TO SIT AT HER SIDE DURING HER HUSBAND'S ADDRESS TO CONGRESS LAST WEEK HAD I BEEN THE PRESIDENT SAID REPUBLICAN SEN PHIL GRAMM OF TEXAS I'D HAVE HAD YOU IN THE SAME SPOT MR GREENSPAN DIDN'T RESPOND TO THE REMARKS BUT A SPOKESMAN HAD SAID LAST WEEK THAT DESPITE THE FED'S INSTITUTIONAL PRIDE IN ITS INDEPENDENCE MR GREENSPAN CONSIDERED THE FIRST LADY'S INVITATION A COMMAND PERFORMANCE THE FED CHAIRMAN DID POINT OUT THAT MR CLINTON'S OWN PROJECTIONS SHOW THAT THE DEFICIT WILL WIDEN LATER THIS DECADE EVEN IF THE PRESIDENT'S PLAN IS FULLY IMPLEMENTED THIS IMPLIES NOT ONLY THE NEED TO MAKE CUTS NOW BUT TO CONTROL FUTURE SPENDING IMPULSES HE SAID I TRUST THE PRESIDENT'S ENDEAVOR TO REIN IN MEDICAL COSTS WILL CONTRIBUTE IMPORTANTLY TO THIS GOAL HE RESISTED DEMOCRATIC ARGUMENTS THAT THE FED WILL HAVE TO LOWER INTEREST RATES TO KEEP THE ECONOMY FLYING IN THE FACE OF MR CLINTON'S CONTRACTIONARY DEFICITREDUCTION PLAN IT'S NOT A DEEP SQUEEZE MR GREENSPAN SAID NOTING THAT MR CLINTON WOULD SHRINK THE DEFICIT ONLY GRADUALLY IN 1990 THE FED DID BEGIN TO CUT INTEREST RATES IN A WEAKENING ECONOMY IMMEDIATELY AFTER CONGRESS ENACTED A DEFICITREDUCTION PROGRAM AS MR GREENSPAN HAD HINTED IT WOULD BUT WITH CURRENT INTEREST RATES LOW AND THE ECONOMY GAINING STRENGTH OTHER FED OFFICIALS HAVE MADE CLEAR THAT THEY DON'T WANT TO PUBLICLY LINK MONETARY POLICY TO THE OUTCOME OF THE DEFICIT DEBATE MR GREENSPAN SAID THE ECONOMY BEGAN THE YEAR WITH NOTICEABLE MOMENTUM AND GRADUALLY DIMINISHING EXPECTATIONS FOR INFLATION AT CURRENT INFLATION HE SAID THE ECONOMY IS QUITE CLOSE TO THE FED'S GOAL OF PRICE STABILITY MOST FED OFFICIALS EXPECT THE ECONOMY TO GROW 3 TO 325 THIS YEAR COMPARED WITH LAST YEAR'S 29 GROWTH THAT SHOULD BRING THE UNEMPLOYMENT RATE NOW 71 DOWN TO 675 TO 7 BY YEAR END THE FED EXPECTS CONSUMER PRICES TO RISE 25 TO 275 THIS YEAR AS EXPECTED THE FED HAS DECIDED TO REDUCE ITS TARGETS FOR GROWTH IN THE M2 MEASURE OF THE MONEY SUPPLY FOR THIS YEAR TO 2 TO 6 MR GREENSPAN DISCLOSED BUT HE DISMISSED THE CHANGE AS MOSTLY TECHNICAL AND EMPHASIZED THE UNCERTAIN RELATIONSHIP BETWEEN M2 AND THE ECONOMY M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND SOME SAVINGS ACCOUNTS THE M2 TARGET FOR LAST YEAR WAS 25 TO 65 M2 ACTUALLY GREW ONLY 19 LAST YEAR MR GREENSPAN INDICATED THAT THE FED MAY BE PAYING MORE ATTENTION TO ANOTHER MEASURE NAMELY THE GROWTH IN TOTAL DEBT OUTSIDE THE FINANCIAL SECTOR THIS MEASURE'S RELATIONSHIP WITH THE ECONOMY HAS BEEN LESS DISTORTED IN THE LAST FEW YEARS THAN THAT OF THE MONETARY AGGREGATES HE SAID THE FED'S TARGET FOR DEBT GROWTH IS 45 TO 85 UNCHANGED FROM LAST YEAR 9302220007 930222 BT FINANCIAL EXPECTS INCREASES IN EARNINGS FOR QUARTER AND YEAR JOHNSTOWN PA BT FINANCIAL CORP EXPECTS FIRSTQUARTER NET INCOME TO BE AS MUCH AS 7 HIGHER THAN THE YEARAGO PERIOD'S PRESIDENT JOHN H ANDERSON SAID HE SAID 1993 NET COULD BE AS MUCH AS 8 ABOVE 1992 IN THE YEARAGO QUARTER THE BANK EARNED 21 MILLION OR 69 CENTS A SHARE IN 1992 NET TOTALED 86 MILLION OR 274 A SHARE BT FINANCIAL WITH 907 MILLION OF ASSETS IS TRYING TO INCREASE THE SIZE OF ITS LOAN PORTFOLIO BY EXPANDING MARKET SHARE IN WESTERN PENNSYLVANIA COUNTIES SURROUNDING PITTSBURGH TO INCREASE EARNINGS WE NEED TO GENERATE CONSUMER LOANS MR ANDERSON SAID IN AN INTERVIEW AT THE SAME TIME BT FINANCIAL IS AWARE THAT IT IS A POTENTIAL ACQUISITION TARGET FOR A LARGER BANK EAGER TO GROW IN WESTERN PENNSYLVANIA MR ANDERSON SAID WE HAVEN'T PUT THE FOR SALE SIGN OUT BUT WE'RE MAKING OURSELVES AN ATTRACTIVE FRANCHISE FOR POTENTIAL ACQUIRERS HE SAID ANALYSTS BELIEVE BT FINANCIAL AND OTHER SMALL REGIONAL BANKS SUCH AS ITS JOHNSTOWN RIVAL USBANCORP INC ARE POSSIBLE TARGETS FOR OUTOFSTATE BANKS PARTICULARLY OHIOBASED COMPANIES WHICH WANT TO ESTABLISH A FOOTHOLD ACROSS THE BORDER ANALYST ROBERT P KANTERS OF LEGG MASON WOOD WALKER INC DESCRIBES BT FINANCIAL AS AN HISTORICALLY TROUBLEFREE SITUATION THAT MIGHT BE INTERESTING TO BANKS AS THEY EXPAND INTO THIS AREA MR ANDERSON SAID BT FINANCIAL IS DETERMINED TO CUT OPERATING EXPENSES BY 800000 TO 1 MILLION IN 1993 HE SAID THE BANK HIRED A CONSULTANT TO ADVISE IT ON HOW TO CONSOLIDATE BACKROOM OPERATIONS AND MAKE DAYTODAY PERFORMANCE MORE EFFICIENT 9302220006 930222 WHO'S NEWS VALASSIS COMMUNICATIONS INC VALASSIS COMMUNICATIONS INC LIVONIA MICH ALBERT J DUNLAP 55 YEARS OLD RESIGNED AS CHAIRMAN OF THIS PRODUCER OF NEWSPAPER INSERTS AND AS MANAGING DIRECTOR OF CONSOLIDATED PRESS GROUP OF COS SYDNEY AUSTRALIA WHICH OWNS 49 OF VALASSIS A SUCCESSOR HASN'T BEEN NAMED 9302220005 930222 ITALY'S CIGA MAY SELL HOTEL UNIT TO CREDITORS INSTEAD OF TO SITUR SRL MILAN ITALIAN HOTEL GROUP CIGA SPA COULD SELL ITS KEY HOTEL UNIT TO ITS CREDITOR BANKS INSTEAD OF TO TOURISM CONCERN SITUR SRL A SPOKESMAN FOR CIGA SAID THE SPOKESMAN CLAUDIO MIORELLI SAID CIGA'S 20 OR SO CREDITOR BANKS DON'T SEEM OVERLY ENTHUSIASTIC AT A FINANCIAL AND CORPORATE RESTRUCTURING PROPOSED BY CIGA IN WHICH IT WOULD SELL SITUR A 51 STAKE IN CIGA IMMOBILIARE SPA CIGA IMMOBILIARE OWNS THE GROUP'S 21 LUXURY ITALIAN HOTELS A PRELIMINARY ACCORD BETWEEN SITUR AND CIGA SPA CALLED FOR SITUR TO ACQUIRE THE STAKE IN CIGA IMMOBILIARE BY WHOLLY UNDERWRITING A CAPITAL INCREASE FOR 301 BILLION LIRE 1935 MILLION THE ACCORD IS CONTINGENT ON APPROVAL BY THE BANKS OWED SOME ONE TRILLION LIRE BY CIGA THE BANKS SEEM TO THINK SITUR WOULD PAY TOO LITTLE FOR THE STAKE MR MIORELLI SAID THE BANKS MAY BE SAYING THAT AT THIS PRICE IT IS REALLY A GOOD DEAL AND WE'LL BUY IT OURSELVES MR MIORELLI SAID HE NOTED THAT BANKS TAKING STAKES IN CIGA AS PART OF SETTLING THE GROUP'S DEBTS WAS ONE OF THE RESTRUCTURING OPTIONS CIGA HAD PROPOSED ALONG WITH THAT OF SELLING SITUR THE STAKE THE BANKS ARE SCHEDULED TO MEET NEXT WEEK TO REACH A FINAL DECISION THE IMPORTANT THING IS FOR CIGA TO CONTINUE ITS OPERATIONS INTERNATIONALLY AND TO KEEP MANAGEMENT OF ITS HOTELS HE SAID ALL THE GROUP'S HOTELS ARE MANAGED BY ITS CIGA HOTELS UNIT WHICH THE ACCORD WITH SITUR WOULD LEAVE UNTOUCHED HE NOTED THAT IT'S NOT CLEAR WHETHER CIGA WOULD GET TO KEEP MANAGEMENT RESPONSIBILITIES OF THE HOTELS IF THE BANKS TAKE STAKES WHO KNOWS THE MOST FARFETCHED SCENARIO WOULD BE THAT THE BANKS WOULD WANT TO SELL ALL THE HOTELS MR MIORELLI SAID 9302220004 930222 APPLIED MATERIALS RECEIVES ORDER SANTA CLARA CALIF APPLIED MATERIALS INC SAID IT RECEIVED AN ORDER FOR CHIPMAKING EQUIPMENT VALUED AT 19 MILLION FROM SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO 9302220002 930203 LETTERS TO THE EDITOR CRIMES AGAINST THE ENVIRONMENT ON JAN 15 YOUR EDITORIAL CALLED FOR PRESIDENT BUSH TO PARDON BILL ELLEN A MARYLAND MAN CONVICTED OF VIOLATIONS OF FEDERAL CRIMINAL ENVIRONMENTAL LAWS THIS WAS THE SECOND TIME YOU WROTE ON THIS CASE ON THIS OCCASION HOWEVER YOU WENT FURTHER TO QUESTION NOT JUST THE CONVICTION BUT THE ENTIRE CONCEPT OF AN ENVIRONMENTAL CRIME YOU SPECIFICALLY REFERRED TO MY PROJECT AND CRITICIZED ITS RECENT REPORT ON ENVIRONMENTAL CRIMINAL PROSECUTIONS COMMISSIONED BY REP CHARLES SCHUMER D NY THAT REPORT FOUND A PATTERN OF MISMANAGEMENT AND RELUCTANT PROSECUTION AT THE ENVIRONMENTAL CRIMES SECTION OF THE JUSTICE DEPARTMENT YOUR EDITORIAL RESTS ON A TROUBLING ASSUMPTION THAT ENVIRONMENTAL CRIMINALS ARE MATERIALLY DIFFERENT FROM CONVENTIONAL CRIMINALS ANY SUCH DISTINCTION HOWEVER IS BASED ON CULTURAL RATHER THAN LEGAL JUDGMENT IT IS IRONIC TO SEE THE JOURNAL ABANDON ITS PREVIOUS TOUGHONCRIME POSITION TO WORK FOR THE REVERSAL OF A CRIMINALJURY DECISION AND THE NEGATION OF A MINIMAL THREEMONTH SENTENCE YOUR EXPRESSED HORROR AT THE THOUGHT OF EXECUTIVES BEING PROSECUTED FOR ENVIRONMENTAL CRIMES IS BOTH TELLING AND DISAPPOINTING FOR A RESPECTED NATIONAL PUBLICATION THE CORPS OF ENGINEERS RECENTLY EXPANDED ITS JURISDICTION FROM TIDAL TO NONTIDAL WETLANDS WITHOUT MAPPING THE WETLANDS AND WITHOUT CONGRESSIONAL ACTION THE CORPS' TECHNICAL DEFINITION OF NONTIDAL WETLANDS IS THE BAD LAW NONTIDAL WETLANDS USUALLY LOOK LIKE ORDINARY DRY WOODS AND FIELDS AND CAN BE IDENTIFIED ONLY BY AN EXPERT THE LACK OF WETLANDS MAPS CREATES UNCERTAINTY OVER THE LOCATION OF FEDERALLY PROTECTED WETLANDS THIS UNCERTAINTY CAUSED BANKS TO LOSE LARGE LOANS SECURED BY REAL ESTATE PREVENTED LOCAL GOVERNMENTS FROM BUILDING INFRASTRUCTURE AND SENT BILL ELLEN TO JAIL MAPPING THE WETLANDS CAN CURE THE CHAOS NONTIDAL WETLANDS HAVE SUBSTANTIAL ENVIRONMENTAL AND ECONOMIC VALUES THE ECONOMIC VALUE OF WETLANDS IN SOUTHEASTERN VIRGINIA HAS BEEN ESTIMATED AT 50 BILLION THE REMOVAL OF 750000 ACRES OR 1000 SQUARE MILES FROM VIRGINIA'S ECONOMY ALONE REQUIRES A NATIONAL SCIENTIFIC AND ECONOMIC DEBATE FOLLOWED BY LEGISLATIVE ACTION BILL ELLEN IS A MARTYR OF BAD LAW AND SHOULD BE PARDONED READING YOUR EDITORIAL ON BILL ELLEN AT THE MERCY OF THE ENVIRONMENTAL COPS ONE IS MOVED TO PARAPHRASE THE COSBY SHOW'S CLIFF HUXTABLE'S COMMENT TO CLAIRE IN REGARD TO THE ANTICS OF THEIR TEENAGERS THEY WANT THE HOUSE THAT IS THE ESSENCE OF THE STRUGGLE FOR SO MANY OF THE BUREAUCRATS WHO HAVE MADE WETLANDS THEIR CRUSADE THEY WANT THE LAND THEY DO SO WITH THE FULL COOPERATION OF THE MEDIA SUCH AS CNN AND THE NATIONAL GEOGRAPHIC ALL OF WHICH CONSISTENTLY DISCUSS THE BATTLE IN TERMS OF THREATS TO THE EVERGLADES AND OTHER RECOGNIZABLY IMPORTANT WETLANDS NOTHING IS SAID ABOUT THE THOUSANDS OF ACRES OF OCCASIONALLY DAMP SPOTS IN THE WOODS THAT HAVE BEEN REMOVED FROM PRODUCTIVE USE AT GREAT LOSS TO LANDOWNERS AND INCREASED COSTS TO HOME BUYERS LAND THAT NO RATIONAL PERSON WOULD FIND WORTHY OF BUYING WITH FEDERAL DOLLARS FOR THE SAKE OF PROTECTION IF THAT WERE THE WAY THE LAND HAD TO BE SECURED BUT FORTUNATELY FOR THE ENVIRONMENTAL COPS THE SYSTEM DOESN'T REQUIRE THAT THEY BUY THE LAND THEY ARE FREE TO TAKE IT WITHOUT COMPENSATION BECAUSE OF VAGUE RULES AND ELECTED LEADERS WHO FEAR TO CONFRONT SPECIAL INTERESTS AND SUPERFICIAL MEDIA WITH THE TRUTH YES IT IS THE LAND THEY WANT THE LAND THEY'VE NOT YET SECURED THE RESOURCES TO ACQUIRE ON THEIR OWN LAND THEY'VE NOT YET HAD TO PAY TAXES ON LAND THEY HAVEN'T FACED DEFENDING FROM ONSLAUGHTS OF EXTREMISTS LIKE THEMSELVES SEE RELATED LETTERS LETTERS TO THE EDITOR BEWARE THE ECOFANATICS WSJ FEB 22 1993 9302030131 9302220001 930222 ECONOMY VALUEADDED TAX IS MULLED IN WHITE HOUSE POLITICALLY VOLATILE LEVIES RECEIVE CONSIDERATION BUT UNLIKELY FOR NOW BY RICK WARTZMAN AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL THE PROSPECT OF A NATIONAL SALES TAX THE MERE MENTION OF WHICH ONCE WAS CONSIDERED POLITICAL SUICIDE IS SUDDENLY BEING BANDIED ABOUT BY PRESIDENT CLINTON AND HIS TOP AIDES THE LIKELIHOOD OF SUCH A TAX BEING INTRODUCED ANYTIME SOON IS SLIM WHITE HOUSE OFFICIALS SAID YET THE FACT THAT THE PRESIDENT IS OPENLY MULLING THE CONCEPT INDICATES THAT A NATIONAL SALES TAX COULD BE COMING DOWN THE ROAD LATER I DO BELIEVE THAT AMERICA AT ANOTHER TIME AND MAYBE NOT TOO LONG IN THE FUTURE WILL DEBATE WHETHER WE WANT TO SHIFT THE NATURE OF OUR TAX SYSTEM THE PRESIDENT SAID IN RESPONSE TO A QUESTION ON NATIONAL SALES TAXES FRIDAY DURING AN APPEARANCE IN CHILLICOTHE OHIO LATER THOUGH HE ADDED I DID NOT MEAN TO FLOAT A TRIAL BALLOON IT IS NOT UNDER CONSIDERATION AT THIS TIME ROGER ALTMAN THE DEPUTY TREASURY SECRETARY DID A SIMILAR ABOUTFACE A WEEK AGO HE SAID THAT A VALUEADDED TAX A SORT OF NATIONAL SALES TAX WAS AMONG THE OPTIONS THAT WOULD GET VERY SERIOUS CONSIDERATION IN CONNECTION WITH THE ADMINISTRATION'S PLAN TO PROVIDE HEALTH COVERAGE FOR ALL AMERICANS BUT HE HASTENED TO ADD THAT HE DIDN'T PERSONALLY THINK IT WAS GOING TO HAPPEN A VALUEADDED TAX IS LEVIED AT EACH STAGE OF PRODUCTION WITH A CREDIT PROVIDED FOR THE TAX THAT WAS IMPOSED AT THE PRIOR STAGE AND ULTIMATELY PASSED ONTO THE CONSUMER MEANWHILE TREASURY SECRETARY LLOYD BENTSEN ACKNOWLEDGED LAST WEEK IN AN INTERVIEW THAT THERE SEEMS TO BE GROWING SUPPORT FOR A VALUEADDED TAX OR SOME OTHER BROADBASED CONSUMPTION TAX AMONG PROMINENT LAWMAKERS AND ECONOMISTS BUT HE EMPHASIZED THAT THERE IS CURRENTLY NO COMMITMENT FROM THE ADMINISTRATION NONETHELESS MANY LONGTIME WASHINGTON OBSERVERS NOTE THAT POLITICIANS AND PRESIDENTS IN PARTICULAR AREN'T INCLINED TO DISCUSS NEW TAXES PUBLICLY UNLESS THEY ARE TESTING THE WATERS YOU CAN SEE THE POLITICAL DUCKS BEING LINED UP FOR SOME VERSION OF A NATIONAL SALES TAX TO BE INTRODUCED SAID GARY HUFBAUER A FORMER TREASURY OFFICIAL AND AN ADVISER TO THE COMMITTEE FOR STRATEGIC TAX REFORM A GROUP OF MAJOR COMPANIES INTERESTED IN OVERHAULING THE FEDERAL TAX SYSTEM OVER THE WEEKEND A TOP WHITE HOUSE OFFICIAL STRESSED THAT WHILE MR CLINTON PRIVATELY HAS EXPRESSED INTEREST IN A VALUEADDED TAX THE PRESIDENT IS AWARE THAT THE HEALTHCARE PACKAGE CURRENTLY BEING DRAFTED WOULD BE TOUGH ENOUGH TO SELL WITHOUT TRYING TO FUND IT THROUGH SUCH A CONTROVERSIAL MEASURE IN FACT MR CLINTON LAST FRIDAY DESCRIBED A NATIONAL SALES TAX AS A RADICAL CHANGE AND HE NOTED THAT THERE'S ONLY SO MUCH CHANGE A COUNTRY CAN ACCOMMODATE AT THE SAME TIME STILL SOME POINT OUT THAT THE ENORMOUS COST OF HEALTHCARE REFORM MAY FORCE THE ADMINISTRATION TO CONSIDER A NATIONAL SALES TAX SOONER RATHER THAN LATER THOUGH WHITE HOUSE BUDGET DIRECTOR LEON PANETTA REITERATED LAST WEEKEND THAT THE ADMINISTRATION IS EXAMINING SUCH OPTIONS AS SOCALLED SIN TAXES ON ALCOHOL AND TOBACCO TO FINANCE THE HEALTHCARE INITIATIVE SOME EXPERTS DOUBT THAT WOULD RAISE SUFFICIENT REVENUE AND AFTER PROPOSING TO BOOST THE TOP PERSONAL AND CORPORATE INCOME TAX RATES TO HELP SHRINK THE DEFICIT I DON'T SEE THE PRESIDENT COMING BACK INTO THE INCOME TAX SYSTEM TO GET ANY MORE MONEY SAID BARRY ROGSTAD PRESIDENT OF THE AMERICAN BUSINESS CONFERENCE WHERE THAT TAKES YOU IS INTO THIS WHOLE ARENA OF CONSUMPTION TAXES MR ROGSTAD ALONG WITH THE REST OF THE CORPORATE COALITION THAT MR HUFBAUER IS ADVISING SUPPORTS A BIPARTISAN PLAN PUT FORTH LAST YEAR BY SENS SAM NUNN D GA AND PETE DOMENICI R NM THAT CALLED FOR A NEW CONSUMPTIONBASED INCOME TAX SUPPORT FOR BROADBASED CONSUMPTION TAXES HAS BEEN GROWING ON CAPITOL HILL PARTLY BECAUSE THEY WOULD ENCOURAGE PEOPLE TO SAVE MORE SENATE ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON A DEMOCRAT WHO REPRESENTS THE OIL AND GASPRODUCING STATE OF LOUISIANA SAID A VALUEADDED TAX MAY BE PREFERABLE TO MR CLINTON'S PROPOSED ENERGY TAX ECONOMISTS ALSO SAY THAT A BROAD CONSUMPTION TAX WOULD HAVE THE VIRTUE OF NOT DISTORTING THE NATION'S PRODUCTION PROCESS BY FAVORING ONE MIX OF RESOURCES OVER ANOTHER THE WAY THE REGULAR INCOME TAX SYSTEM DOES IN ADDITION MR CLINTON POINTED OUT THAT MANY OF THE US'S FOREIGN RIVALS HAVE A NATIONAL SALES TAX AND ARE ABLE TO IMPOSE IT WITHOUT CONSUMERS ACTUALLY SEEING IT ON THEIR SALES SLIPS MANUFACTURERS LIKE IT BECAUSE IT IS IMPOSED ON THEIR COMPETITORS' IMPORTS RATHER THAN ON THEIR OWN EXPORTS BUT THERE ARE PROBLEMS FOR INSTANCE A NATIONAL SALES TAX TENDS TO PUT A DISPROPORTIONATE BURDEN ON LOW AND MIDDLEINCOME PEOPLE COMPARED WITH THOSE WITH HIGHER INCOMES MR CLINTON SAID THAT STAPLES SUCH AS FOOD AND CLOTHING COULD BE EXEMPTED TO MAKE IT FAIR YOU'VE GOT TO BE CAREFUL HOW YOU DO IT SO YOU DON'T MAKE IT A REGRESSIVE TAX HE SAID MANY ECONOMISTS ARGUE THAT THE DIFFICULTY OF ADMINISTERING A VALUEADDED TAX MEANS IT WOULDN'T BE WORTH PUTTING INTO PLACE UNLESS IT CARRIED A RATE OF 7 OR MORE BUT IF THE TAX WERE THAT LARGE IT WOULD GENERATE HUNDREDS OF BILLIONS OF DOLLARS IN A SHORT TIME FAR MORE THAN APPARENTLY WOULD BE NEEDED TO FUND THE HEALTHCARE EFFORT A KEY QUESTION THEN BECOMES WHETHER A NEW CONSUMPTION TAX WOULD BE USED SIMPLY AS AN ADDON TO THE CURRENT SYSTEM OR AS A REPLACEMENT YESTERDAY ON NBCTV'S MEET THE PRESS MR PANETTA INDICATED THAT THE LATTER MAY BE MORE LIKELY OBVIOUSLY YOU WOULD BE REPLACING OTHER INCOME TAXES OR MAKING OTHER SHIFTS SO AS TO NOT INCREASE THE BURDEN ON THE AMERICAN PEOPLE HE SAID 9302220085 930106 BULLY PULPIT EGYPTIAN JIHAD LEADER PREACHES HOLY WAR TO BROOKLYN MUSLIMS SHEIK OMAR ABDELRAHMAN BLESSED SLAYING OF SADAT NOW OPERATES FROM US MURDER IN THE NEIGHBORHOOD BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT BROOKLYN'S ABU BAKR MOSQUE NOT FAR FROM CONEY ISLAND DOZENS OF MEN GATHER QUIETLY FOR THE SUNDAYNIGHT SERMON OF SHEIK OMAR ABDELRAHMAN ALL RISE AS THE CLERIC ENTERS THE ROOM IT'S ALL UP HERE WHISPERS AN EGYPTIAN NAMED MOHAMMED POINTING TO HIS HEAD THE SHEIK DOESN'T SAY ANYONE SHOULD DIE HE SAYS PEOPLE MUST FOLLOW THE KORAN BUT PEOPLE HEAR HIM AND GET IDEAS BACK IN EGYPT SHEIK OMAR IS BEST KNOWN AS THE BLIND PREACHER WHO ISSUED THE FATWA OR ISLAMIC SANCTION FOR THE ASSASSINATION OF PRESIDENT ANWAR SADAT BUT IN NEW YORK THE 54YEAROLD SHEIK WHO ENTERED THE US WITH A TOURIST VISA IN 1990 EVEN THOUGH HE WAS ON THE OFFICIAL US TERRORIST LIST IS GAINING RENOWN FOR PREACHING JIHAD OR MUSLIM HOLY WAR IN LOCAL MOSQUES THE FBI HAS INVESTIGATED HIM IN CONNECTION WITH THREE MURDERS SINCE MOVING TO THE BOROUGH OF BROOKLYN 2 1/2 YEARS AGO THE SPIRITUAL LEADER OF EGYPT'S OUTLAWED JIHAD REVOLUTIONARY GROUP HAS BROUGHT THE VIOLENT STRUGGLE AGAINST THE ENEMIES OF ISLAM INTO THE BELLY OF THE GREAT SATAN ITSELF THE UNITED STATES OF AMERICA HIS FIRE AND BRIMSTONE PREACHED IN LARGE AND NORMALLY TRANQUIL ISLAMIC COMMUNITIES HAVE BLAZED A TRAIL OF STRIFE THROUGH MOSQUES AND MUSLIM GATHERING PLACES THE STATE DEPARTMENT CLAIMS TO HAVE MADE A MISTAKE IN MAY 1990 WHEN THE AMERICAN EMBASSY IN KHARTOUM THE CAPITAL OF SUDAN ISSUED SHEIK OMAR A TOURIST VISA TO THE US HIS GREEN CARD PERMITTING HIM TO STAY AND WORK AS A PREACHER WAS REVOKED IN MARCH ON JAN 20 THE SHEIK IS SCHEDULED TO APPEAR AT A FEDERAL HEARING TO REQUEST POLITICAL ASYLUM AND TO ANSWER US CHARGES THAT HE LIED ON HIS VISA APPLICATION THAT HE IS A POLYGAMIST AND THAT HE HAS COMMITTED UNSPECIFIED CRIMES OF MORAL TURPITUDE IF THE IMMIGRATION JUDGE RULES AGAINST HIM THE SHEIK MIGHT HAVE TO LEAVE THE US ABRUPTLY BUT FOR SHEIK OMAR TO RETURN TO EGYPT WHICH NOW FACES ITS WORST ISLAMIC VIOLENCE IN YEARS POSES OTHER PROBLEMS WHILE EGYPT'S INTERIOR MINISTER ABDELHALIM MOUSSA HAS PUBLICLY CALLED FOR THE SHEIK'S RETURN OTHER EGYPTIAN OFFICIALS IN PRIVATE TALKS WITH US COUNTERPARTS HAVE EXPRESSED FEARS THAT TO HAVE HIM BACK IN EGYPT EVEN IN PRISON COULD INCITE MORE VIOLENCE WE MIGHT LOOK FOR A THIRD COUNTRY TO TAKE HIM SAYS A STATE DEPARTMENT ANTITERRORIST OFFICIAL THE EXAMPLE OF IRAN LOOMS LARGE THOUGH SHEIK OMAR REFUSES TO COMPARE HIMSELF TO IRAN'S LATE AYATOLLAH RUHOLLAH KHOMEINI I'M NOT THINKING ABOUT BEING A LEADER HE SAYS IN AN INTERVIEW HE ACKNOWLEDGES THE PARALLEL AFTER YEARS OF PERSECUTION IN IRAN AND EXILE IN FRANCE THE AYATOLLAH RETURNED TO TEHRAN AS A MUCH BIGGER HERO THAN HE WOULD HAVE BEEN HAD THE LATE SHAH'S SECRET POLICE NOT HOUNDED HIM SO FIERCELY THE SAME SYMPATHY COULD QUICKLY RALLY AROUND SHEIK OMAR EGYPTIANS WARN IF THE GOVERNMENT OF PRESIDENT HOSNI MUBARAK LOCKS UP THE AILING CLERIC WHICH IT ALREADY HAS DONE SEVERAL TIMES OVER THE PAST DECADE SHEIK OMAR IS THE EMIR THE LEADER THE MOST IMPORTANT IMAM SAYS MONTASSER ALZAYAT A CAIRO LAWYER WHO REPRESENTS SOME OF THE THOUSANDS OF PEOPLE ARRESTED AS ISLAMIC RADICALS IN EGYPT IN RECENT WEEKS FOLLOWING VIOLENCE AGAINST TOURISTS ON THE GROUND FLOOR OF CAIRO UNIVERSITY'S DAR ALALOOM COLLEGE YOUNG MEN WITH SCRAGGLY BEARDS STUDY DISPLAYS AT A SPECIAL ISLAMIC FAIR THAT PEOPLE ARE CALLING THE SHEIK OMAR EXHIBIT THE SHEIK'S BOOKS AND TAPES ARE SET OUT ON TABLES ADORNED WITH DRAWINGS OF HIS FACE AND FLIERS WITH NEWS OF THE SHEIK FROM NEW YORK SHEIK OMAR IS A GOOD MAN ONE STUDENT SAYS WE LOVE HIM ANYWHERE ELSE IN EGYPT SUCH PUBLIC REVERENCE FOR THE DISSIDENT CLERIC THESE DAYS WOULD UNDOUBTEDLY BRING A HARSH CRACKDOWN BY THE POLICE BUT UNIVERSITY ADMINISTRATORS ARE TOLERATING THE EXHIBIT IN HOPES OF MOLLIFYING THE STUDENTS TO OPPOSE THEM WOULD TURN THE WHOLE UNIVERSITY AGAINST THE AUTHORITIES SAYS AHMED A STUDENT ATTENDING THE FAIR AS WAS ALSO TRUE OF THE LATE AYATOLLAH KHOMEINI MORAL AUTHORITY NOT CHARISMA IS WHAT THE SHEIK HAS GOING FOR HIM HE EARNED HIS CREDENTIALS AS AN IMAM AND ISLAMIC SCHOLAR AT THE PRESTIGIOUS ALAZHAR UNIVERSITY IN CAIRO HE EARNED HIS FAME HOWEVER IN EGYPT'S UBIQUITOUS SLUMS AS A LONELY MAN BLINDED SINCE CHILDHOOD BY DIABETES WHO REFUSED TO SQUELCH HIS HARSH READING OF THE SCRIPTURES NO MATTER HOW SICK OR PERSECUTED HE MAY HAVE BEEN SHEIK OMAR MAKES A FATWA BASED ON WHAT GOD SAID BASED ON EVIDENCE FROM THE KORAN SAYS A 22YEAROLD ENGINEERING STUDENT WHO WON'T GIVE HIS NAME IN CONTRAST THE STUDENT SAYS EGYPT'S GRAND MUFTI THE NATION'S OFFICIAL INTERPRETER OF RELIGIOUS LAW MAKES THINGS UP THE MUFTI SAYS IT'S PERMISSIBLE TO HAVE ALCOHOL IN EGYPT WHERE IS HIS EVIDENCE RELIGIOUS TEXTS AREN'T THE ONLY SOURCE OF SHEIK OMAR'S VIEWS IN A 90MINUTE INTERVIEW AT HIS APARTMENT JUST FOUR SUBWAY STOPS FROM WALL STREET THE CLERIC THUNDERS ABOUT CHRISTIANITY THE WEST MIDEAST POLITICS AND THE SCOURGE OF TOURISM IN EGYPT PAUSING ONLY TO FIELD PHONE CALLS HE HAS CALLWAITING AND TO FLIP CASSETTES IN THE TAPE RECORDER BESIDE HIM HIS BARE SWOLLEN FEET TWITCH EXCITEDLY SHEIK OMAR LAUGHS JUST TWICE ONCE WHEN ASKED WHEN EGYPT'S GOVERNMENT WILL FALL ONLY ALLAH KNOWS AND AGAIN WHEN ASKED WHETHER HE PLANS TO ISSUE A FATWA AGAINST MR MUBARAK ON THE WAY HE SAYS IT IS THE DUTY OF ALL GOOD MUSLIMS TO REBEL AGAINST TYRANTS THE SHEIK ADDS THE EGYPTIAN PEOPLE WILL NOT ACCEPT BEING WHIPPED AND RAPED AND ROBBED BY THE CORRUPT MUBARAK REGIME SOME QUESTIONS HE DOESN'T ANSWER SHEIK OMAR'S LIVING ROOM ITS CORNERS STACKED HIGH WITH BLANK SONY TAPES AND BOXES OF BOOKS IN ARABIC AND IN ENGLISH TRANSLATION IS CLEARLY SOME SORT OF HEADQUARTERS BUT THE SHEIK WON'T DISCUSS WHAT HE DOES OUTSIDE THE HOME HE SAYS HE HAS VISITED SEVERAL MOSQUES AROUND THE US BUT WON'T SAY WHERE AND ALL QUESTIONS ABOUT MUSTAFA SHALABI AN EGYPTIAN FOUND MURDERED IN A BROOKLYN APARTMENT LAST YEAR ARE STRICTLY OFFLIMITS THESE AREN'T PRESS QUESTIONS SHEIK OMAR FUMES THIS SOUNDS LIKE THE FBI THE UNSOLVED SHALABI KILLING IS AT THE CENTER OF THE FBI INVESTIGATION OF SHEIK OMAR WHICH ALSO INVOLVES QUESTIONS ABOUT THE 1990 SLAYING OF THE RADICAL RABBI MEIR KAHANE AND A MORE RECENT MURDER OF A MIDDLE EASTERN MAN IN CLEVELAND IN NONE OF THE CASES IS THE SHEIK SUSPECTED OF KILLING ANYONE BUT FBI AGENTS HAVE BEEN LOOKING INTO WHETHER HE GAVE RELIGIOUS APPROVAL FOR THE BLOODSHED HE WON'T DISCUSS ANY OF IT THOUGH THE FBI WON'T COMMENT ON ITS INVESTIGATION ITS AGENTS BELIEVE THEY HAVE ENOUGH EVIDENCE TO PERSUADE THE IMMIGRATION JUDGE TO BAR SHEIK OMAR FROM THE US IN BROOKLYN THE SHALABI MURDER AND A SERIES OF DISPUTES SET OFF BY SHEIK OMAR'S INCENDIARY BRAND OF ISLAM HAVE SPREAD RANCOR THROUGH THE MUSLIM COMMUNITY IN THE HEART OF BROOKLYN'S FLATBUSH NEIGHBORHOOD ABDULKADER KALLASH SITS IN A SMALL HOUSE BEHIND HIS TRAVEL AGENCY PONDERING THE MEANING OF JIHAD IN AMERICA MR KALLASH WHO DESCRIBES HIMSELF AS A DEVOUT MUSLIM MOVED TO THE US FROM SYRIA 27 YEARS AGO IN 1990 HE AND HIS OLD FRIEND MR SHALABI WERE THE FIRST TO SPONSOR SHEIK OMAR IN NEW YORK PROVIDING THE CLERIC WITH AN APARTMENT A PHONE EVEN A CAR AND DRIVER BUT THE RELATIONSHIP SOURED QUICKLY SHEIK OMAR LIKES POWER AND FORCE MR KALLASH SAYS I DON'T THINK THAT'S HOW GOD WANTS US TO DELIVER THE MESSAGE SHORTLY AFTER ARRIVING IN BROOKLYN SHEIK OMAR BEGAN FEUDING WITH MR SHALABI OVER CONTROL OF A CHARITY GROUP THAT MR SHALABI HAD FOUNDED IN THE MID1980S TO AID REBELS IN AFGHANISTAN IN ADDITION TO SENDING CASH AND SUPPLIES TO THE AFGHANIS THE BROOKLYN JIHAD OFFICE AS THE GROUP IS CALLED RECRUITED YOUNG MUSLIMS IN THE US TO JOIN THE ANTISOVIET MUJAHEDEEN SOME US RECRUITS EVEN GOT PARAMILITARY TRAINING AT A PRIVATE CAMP IN CONNECTICUT SHEIK OMAR HIS CRITICS IN BROOKLYN SAY WANTED TO COOPT THE CHARITY FOR HIS OWN JIHAD GROUP BACK IN EGYPT SEEKING TO CREATE AN ISLAMIC STATE ACCORDING TO MR KALLASH AND OTHERS THE SHEIK SPREAD THE WORD IN NEW YORK THAT MR SHALABI AN ELECTRICAL CONTRACTOR WAS DISHONEST AND A BAD MUSLIM LETTERS WERE POSTED IN LOCAL MOSQUES SIGNED BY SHEIK OMAR WARNING PEOPLE NOT TO DEAL WITH MR SHALABI AFRAID FOR HIS LIFE MR SHALABI PUT HIS WIFE ON A PLANE TO EGYPT AND MADE PLANS TO GO TO AFGHANISTAN THREE DAYS LATER HE WAS SHOT TWICE IN THE HEAD AND KNIFED BY AT LEAST TWO PEOPLE POLICE CONCLUDED THE KILLERS THEN RANSACKED HIS APARTMENT APPARENTLY SEARCHING FOR SOMETHING ALL THE SHEIK WILL SAY OF MR SHALABI IS I NEVER KNEW THE MAN THE MURDER UPSET BROOKLYN'S ARAB COMMUNITY ESPECIALLY ONCE THE FBI STARTED POKING AROUND AT THE LARGE FAROUK MOSQUE ON ATLANTIC AVENUE WHERE SHEIK OMAR HAD PREACHED REGULARLY THE BOARD OF TRUSTEES BARRED HIM FROM THE PULPIT THAT CAUSED LOCAL MUSLIMS TO TAKE SIDES TO DECIDE WHETHER THE MOSQUE SHOULD BE A PLACE OF WORSHIP AND EDUCATION OR ALSO AS SHEIK OMAR WANTED A PLATFORM FOR FOMENTING HOLY WARS NEAR AND FAR THE ARGUMENT STILL RAGES AT HUNGRY HAMED'S LUNCHEONETTE A DOZEN DOORS DOWN FROM THE GATES OF FAROUK MOSQUE PROPRIETOR HAMED NEBAWI WHO PAID FOR MR SHALABI'S BURIAL IN BROOKLYN DOESN'T THINK SHEIK OMAR HAD ANYTHING TO DO WITH HIS FRIEND'S DEATH FBI AGENTS HE SAYS HAVE VISITED HUNGRY HAMED'S SEVERAL TIMES SINCE THE KILLING TO ASK HIM TO IDENTIFY PHOTOS OF ARAB MEN SOME ARMED TAKEN NEAR BROOKLYN MOSQUES AND AT THE BROOKLYN JIHAD OFFICE'S PARAMILITARY TRAINING SITE BUT MR NEBAWI SAYS HE ISN'T CONVINCED THAT IT WAS ARABS AT ALL WHO KILLED MR SHALABI NOT WITH SO MANY OTHER MYSTERIES STILL UNSOLVED DON'T TELL ME THE CIA DIDN'T KNOW MUSTAFA WAS SENDING MONEY AND MEN TO AFGHANISTAN MR NEBAWI SAYS AND DON'T TELL ME THE US DIDN'T KNOW WHO SHEIK OMAR WAS WHEN THEY GAVE HIM HIS VISA DOWN THE STREET FROM HUNGRY HAMED'S THE JIHAD OFFICE IS STILL IN BUSINESS BEHIND A DOUBLELOCKED DOOR A MAN FROM YEMENJUST PASSING THROUGH HE SAYS IS WATCHING TV FROM THE COUCH WHILE BURLY UBAIDH ABDALLAH A 40YEAROLD AMERICAN DUPLICATES RELIGIOUS AUDIO TAPES ON THE FLOOR EXCEPT FOR THE VIDEO SECURITY SYSTEM THE CRAMPED SECONDFLOOR OFFICE LOOKS A LOT LIKE A ROOM IN A COLLEGE DORM BARBELLS PINUPS OF AFGHANI REBELS SHELVES FULL OF ARABIC CASSETTES AND A RECYCLED DISPLAY CASE OF RELIGIOUS BOOKS LABELED IN LARGE LETTERS AT THE TOP HOSIERY CENTER WE COLLECT MONEY FOR DIFFERENT COUNTRIES FOR ANYWHERE MUSLIMS NEED HELP SAYS MR ABDALLAH WHO IT TURNS OUT IS ALSO JUST PASSING THROUGH HE CONVERTED TO ISLAM AS A TEENAGE GANG MEMBER IN PHILADELPHIA HE SAYS BUT SPENT MOST OF THE 1980S IN AFGHANISTAN AS A TOURIST NOW HE LIVES IN SUDAN THE SUDANESE ARE VERY HELPFUL AND WELLMANNERED PEOPLE SO I DECIDED TO STAY WHEN THE CONVERSATION TURNS TO SHEIK OMAR HOWEVER THE KINDLY AMERICAN GOES MUM FLIPPING CHANNELS FURIOUSLY HIS YEMENI FRIEND ON THE COUCH INTERJECTS GO TALK TO HIM YOURSELF AT BROOKLYN'S ABU BAKR MOSQUE A SIGN NEAR THE BACK DOOR ADVERTISES A 45 BUS TRIP TO THE STATE PRISON AT ATTICA TO VISIT BROTHER EL SAYYID NOSAIR THE MAN SERVING SEVEN TO 23 YEARS FOR LESSER CRIMES RELATED TO THE KILLING OF RABBI KAHANE LIKE FAROUK MOSQUE ABU BAKR IS SPLIT OVER SHEIK OMAR SOME OF THE OLDER MOREESTABLISHED MEMBERS HAVE FOUGHT TO KEEP THE SHEIK OUT AS IN THE MIDEAST ITSELF HOWEVER THESE ELDERS ARE OUTNUMBERED BY YOUNGER MEN DRAWN TO SHEIK OMAR'S RADICAL ISLAM IN ABU BAKR'S RECENT ELECTION OF ITS BOARD OF TRUSTEES THE PROOMAR FORCES TOOK FIVE OF SEVEN SEATS LAST SUMMER THE TWO SIDES SPARRED OVER A PROGRAM ORGANIZED BY LOCAL MUSLIMS AT A NEARBY PUBLIC SCHOOL EZZAT ELSHEEMY AN ABU BAKR FOUNDER AND AN ACCOUNTANT FOR THE CITY OF NEW YORK CREATED THE ARABIC CULTURE AND LANGUAGE SESSIONS AS A SUMMER ALTERNATIVE TO THE MOSQUE'S SCHOOL WHICH HE CLAIMS IS RUN BY RADICALS BENT ON BRAINWASHING CHILDREN INTO BECOMING MILITANTS IN JULY HOWEVER EXTREMISTS FROM THE MOSQUE TOLD MR SHEEMY THAT SHEIK OMAR HAD APPROVED THE USE OF VIOLENCE AGAINST HIM AND CERTAIN TEACHERS UNLESS HE CEDED CONTROL OF THE PROGRAM TO ABU BAKR AT ONCE SHEIK OMAR SAYS THAT ISN'T TRUE THEY TOLD ME I'D END UP LIKE MUSTAFA SHALABI SO I GAVE IN SAYS MR SHEEMY AS FOR THE SHEIK HE SAYS HE WOULD LIKE TO GO HOME TO EGYPT BUT NOT BACK TO PRISON WHERE HE CLAIMS TO HAVE BEEN TORTURED SEVERAL TIMES IF HE IS ABLE TO STAY HERE SHEIK OMAR PROMISES TO SHOW ALL AMERICANS THAT THEY'LL NEVER BE HAPPY IF THEY DON'T FOLLOW ISLAM SEE RELATED LETTER LETTERS TO THE EDITOR FORGET ABOUT FANATICS EGYPT MEANS BUSINESS WSJ FEB 22 1993 9301060003 9302220042 930120 THE BOOK ON CLINTON'S BEDSIDE TABLE BY STEVE COATES WHEN THIS NEWSPAPER RECENTLY ASKED BILL CLINTON TO NAME THE ONE BOOK OTHER THAN THE BIBLE THAT HAS BEEN MOST IMPORTANT TO HIM HE CHOSE THE MEDITATIONS OF THE ROMAN EMPEROR GENERAL AND STOIC PHILOSOPHER MARCUS AURELIUS THAT WASN'T A TOTAL SURPRISE MR CLINTON'S PRESS SECRETARY DEE DEE MYERS WAS QUOTED SOME MONTHS AGO SAYING HER BOSS REREADS THE MEDITATIONS EVERY FEW YEARS HER REVELATION RAISED SOME HOOTS AT THE TIME BUT THEY WEREN'T MR CLINTON'S FAULT PEOPLE WERE JUST REMEMBERING THE LAST TIME AN ANCIENT PHILOSOPHER GOT RECRUITED BY A HIGHRANKING POLITICIAN HE TRIES TO READ PLATO'S REPUBLIC' EVERY YEAR ASSERTED MARILYN QUAYLE IN 1988 REFERRING TO HER HUSBAND DAN MARCUS AURELIUS ISN'T AN OBVIOUS CHOICE FOR SOMEONE LOOKING TO BEEF UP AN INTELLECTUAL RESUME EVEN IF MR CLINTON NEEDED TO DO SO ALTHOUGH PLATO'S FANS ARE LEGION THE ROMAN'S NAME RECOGNITION AMONG THE GENERAL PUBLIC IS NEGLIGIBLE MARCUS AURELIUS TENDS TO APPEAL TO PEOPLE FIGHTING SUICIDAL URGES ECCENTRIC POLITICIANS AND THOSE ON THE EDGE GENERALLY AMONG PUBLIC FIGURES WHO ADMIRE THE MEDITATIONS ARE POLITICAL MAVERICKS LIKE ALVIN C FROST THE STATEHOOD PARTY CANDIDATE FOR MAYOR OF WASHINGTON IN 1990 IN THE SAME YEAR RICHARD BERENDZEN THE FORMER PRESIDENT OF AMERICAN UNIVERSITY CLAIMED TO HAVE READ MARCUS AURELIUS EIGHT OR 10 TIMES WHILE WAITING TO PLEAD GUILTY TO MAKING OBSCENE TELEPHONE CALLS STOICISM RANKED AMONG THE GRECOROMAN WORLD'S MOST IMPORTANT PHILOSOPHICAL SCHOOLS WHILE ITS EMPHASIS CHANGED OVER THE CENTURIES THE ESSENTIAL OUTLINES WERE DRAWN UP EARLY IN THE THIRD CENTURY BC IN ATHENS BY ZENO OF CITIUM WHO HAD STUDIED AT PLATO'S ACADEMY IN STOIC THOUGHT A DIVINE ULTIMATELY RATIONAL INTELLIGENCE GOVERNS THE UNIVERSE THOUGH TO MAN THE OVERALL DESIGN OFTEN PROVES INCOMPREHENSIBLE INDIVIDUALS HOWEVER CAN ENDURE LIFE'S FUTILITIES THROUGH THE PERFORMANCE OF DUTY AND THE APPLICATION OF REASON CENTRAL STOIC DOCTRINES INCLUDE THE OBLIGATION TO PLAY A ROLE IN PUBLIC AFFAIRS AND INDIFFERENCE TO LIFE'S PAINS AND PLEASURES THOUGH THE MERE MENTION OF MARCUS AURELIUS SETS EYES ROLLING BECAUSE OF HIS PRESUMED PROFUNDITY THE EMPEROR WAS HARDLY AN INTELLECTUAL HEAVYWEIGHT AND HE WAS NO POLITICAL THEORIST THE MEDITATIONS HIS ONLY WORK IS QUITE SHORT AND DECIDEDLY LIMITED IN SCOPE ESPECIALLY COMPARED WITH THE PRODUCTION OF A PHILOSOPHER LIKE PLATO IT ADDED NOTHING NEW TO THE VENERABLE STOIC TRADITION RATHER MARCUS'S TALENT LAY IN HIS ABILITY TO CONCENTRATE STOIC THOUGHT INTO TIGHT PITHY EXPRESSIONS THAT CAN BE VERY QUOTABLE BUT THAT IN MORE THAN SMALL DOSES ARE REPETITIVE AND EXCRUCIATINGLY BORING TYPICAL OF THE EMPEROR'S SAYINGS ARE I DO MY DUTY OTHER THINGS DO NOT TROUBLE ME AND WIPE OUT FANCY CHECK DESIRE EXTINGUISH APPETITE KEEP YOUR RULING FACULTY IN CONTROL A REASONABLE PERSON COULD WELL DESCRIBE THE MEDITATIONS AS A BOOK OF ANCIENT SELFHELP MAXIMS IN FACT MARCUS AURELIUS WAS ONE OF THE CENTRAL INFLUENCES ON THE REV NORMAN VINCENT PEALE AND HIS POWER OF POSITIVE THINKING MR PEALE RECENTLY SAID THAT HE STILL HAS HIS COPY OF THE MEDITATIONS AND THAT YES HE REREADS IT EVERY YEAR BUT THE ENDURING APPEAL OF THE MEDITATIONS LIES ULTIMATELY IN THE IDENTITY OF ITS AUTHOR MARCUS AURELIUS WAS NO MERE PHILOSOPHICAL SPECULATOR HE WAS THE SOLE RULER OF ONE OF THE GREATEST POLITICAL ENTITIES HISTORY HAS EVER KNOWN A MAN WITH THE WEIGHT OF THE WORLD ON HIS SHOULDERS IF EVER THERE WAS ONE PLATO FOR ALL HIS GENIUS NEVER HAD COMPARABLE RESPONSIBILITIES OF HIS OWN HIS REPUBLIC WAS ALL IN HIS HEAD MARCUS WAS THE LAST OF THE LINE OF ROMAN RULERS KNOWN TO HISTORY AS THE FIVE GOOD EMPERORS THEIR COMBINED REIGNS WHICH LASTED FROM AD 96 TO AD 180 WERE THE PERIOD IN THE HISTORY OF THE WORLD DURING WHICH THE CONDITION OF THE HUMAN RACE WAS MOST HAPPY AND PROSPEROUS ACCORDING TO EDWARD GIBBON IN A FAMOUS PASSAGE FROM THE DECLINE AND FALL OF THE ROMAN EMPIRE BUT MARCUS RULED AT THE END OF THAT PERIOD WHEN EVENTS WERE TAKING A DECIDEDLY NASTY TURN ECONOMIC DECAY RELIGIOUS AND MORAL UNCERTAINTY A CATASTROPHIC OUTBREAK OF THE PLAGUE AND THE EMPIRE'S CRUMBLING FRONTIERS COMBINED TO DEMORALIZE THE ROMANS DURING A 19YEAR REIGN MARCUS SPENT SEVEN YEARS WITH HIS ARMIES IN THE BALKANS TRYING WITH ONLY LIMITED SUCCESS TO STABILIZE THE NORTHERN BORDER AT THE DANUBE MR CLINTON TAKE NOTE IT WAS THERE THAT THE EMPEROR WROTE MOST OF THE MEDITATIONS AS A WAY OF BRACING HIMSELF FOR HIS MANY LABORS ITS CONSOLATIONS ARE GRIM MARCUS WAS A MAN WHO BELIEVED AS HE PUT IT THAT THE ART OF LIVING IS MORE LIKE WRESTLING THAN DANCING THE MEDITATIONS WASN'T MEANT FOR EVERYMAN BUT WAS HIGHLY PERSONAL IN NATURE WITH MANY OF ITS THOUGHTS SPECIFICALLY ADDRESSED TO MARCUS HIMSELF IN HIS CAPACITY AS A RULER FOR THAT REASON FEW PEOPLE IN HISTORY HAVE BEEN IN A BETTER POSITION THAN BILL CLINTON TO APPRECIATE THE FULL FORCE OF THE BOOK THAT MAY BE ONE REASON WHY THE WORK FINDS SUCH RESONANCE WITH THE NEW PRESIDENT THOUGH HE HIMSELF DOESN'T SAY SO MR CLINTON'S EXPRESSED REASON FOR MARCUS'S APPEAL BECAUSE THE GUY WAS A PERSON WHO BELIEVED IN THE OBLIGATION TO LIVE A GOOD LIFE BUT WAS ALSO A SYMPATHETIC AND UNDERSTANDING FIGURE MARCUS WASN'T A PARTICULARLY FARSIGHTED EMPEROR OR GENERAL MUCH OF WHAT HE ACCOMPLISHED PROVED INCOMPLETE OR TEMPORARY AND HIS CHOICE OF SUCCESSOR HIS NOTORIOUS ELDER SON COMMODUS WAS A DISASTER BUT THE EMPEROR WAS A CONSCIENTIOUS AND ENERGETIC LEADER HE HAD A CLEAR IDEA OF HIS DUTY AND SPARED NO PERSONAL PAINS TO CARRY IT OUT IF MR CLINTON REALLY IS THE SORT TO KEEP AN ANCIENT PHILOSOPHER IN MIND AS HE GOES ABOUT THE BUSINESS OF BEING PRESIDENT HE COULD CHOOSE FAR WORSE THAN MARCUS AURELIUS MR COATES IS AN EDITOR ON THE JOURNAL'S OVERSEAS COPY DESK SEE RELATED LETTER LETTERS TO THE EDITOR IN MOMENTS OF CHAOS REACH FOR AURELIUS WSJ FEB 22 1993 9301200048 9302190209 930219 NATIONSBANK SET TO ACQUIRE MNC FINANCIAL CONCERN EXERCISES OPTION IN STOCKSWAP ACCORD VALUED AT 136 BILLION BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK CORP CONTINUING ITS AMBITIOUS EXPANSION EXERCISED ITS OPTION TO ACQUIRE MNC FINANCIAL INC THE LARGEST BANKHOLDING COMPANY IN MARYLAND FOR 136 BILLION NATIONSBANK WHICH IS BASED IN CHARLOTTE NC SAID IT WAS MOVING SOONER RATHER THAN LATER ON ITS FIVEYEAR OPTION BECAUSE IT IS SATISFIED WITH THE STEADY IMPROVEMENT IN CREDIT QUALITY AT THE BALTIMOREBASED BANKHOLDING COMPANY AND BECAUSE BY ACTING NOW IT CAN GET MNC AT THE BEST PRICE THE TRANSACTION WHICH IS PROJECTED TO BE COMPLETED IN THE SECOND HALF OF 1993 WOULD GIVE NATIONSBANK THE DOMINANT POSITION IN MARYLAND AND IN WASHINGTON DC AND WOULD ROUND OUT ITS BANKING OPERATIONS IN VIRGINIA WHERE IT IS ALREADY NO 1 THE BANK SAID NATIONSBANK WHICH IS THE NATION'S FOURTHLARGEST BANKHOLDING COMPANY WITH ASSETS OF 118 BILLION ACQUIRED THE OPTION LAST JULY WHEN IT AGREED TO INJECT 200 MILLION INTO THE BANKHOLDING COMPANY WHICH WAS MIRED IN TROUBLED REALESTATE LOANS SINCE THAT TIME MNC'S NONPERFORMING ASSETS HAVE DECLINED STEADILY TO 111 BILLION AT YEAR END FROM 186 BILLION AT THE PEAK ON SEPT 30 1991 ASSET QUALITY HAS BEEN IMPROVING STEADILY SAID ALFRED LERNER MNC'S CHAIRMAN STILL MNC'S NONPERFORMING ASSETS AMOUNT TO 6 OF TOTAL ASSETS A HIGH LEVEL FOR THE INDUSTRY MNC YESTERDAY RESTATED ITS YEAREND 1992 EARNINGS UPWARD TO 1031 MILLION FROM 431 MILLION TO REFLECT THE ADOPTION OF FINANCIAL ACCOUNTING STANDARD NO 109 COVERING ACCOUNTING FOR INCOME TAXES UNDER TERMS OF THE BUYOUT AT 125 OF ADJUSTED BOOK VALUE NATIONSBANK WILL PAY 1517 A SHARE FOR EACH OF THE 897 MILLION MNC SHARES OUTSTANDING MNC'S SHARES SHOT UP 1375 ON THE NEWS TO 1425 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE NATIONSBANK SHARES CLOSED AT 51125 UP 125 CENTS ON THE BIG BOARD THE TRANSACTION WHICH IS SUBJECT TO APPROVAL BY REGULATORS AND MNC SHAREHOLDERS WILL BE STRUCTURED AS A TAXFREE STOCK SWAP NATIONSBANK SAID BUT IT HAS THE OPTION TO PAY AS MUCH AS 499 IN CASH IT IS LIKELY WE WILL PAY SOME IN CASH SAID JAMES H HANCE JR NATIONSBANK'S CHIEF FINANCIAL OFFICER BUT NO DECISION HAS BEEN MADE NATIONSBANK SAID IT EXPECTS NO EARNINGS DILUTION DURING THE FIRST FULL YEAR OF OPERATING MNC WHICH HAS 250 OFFICES AND 167 BILLION IN ASSETS NATIONSBANK WHICH WAS FORMED IN THE YEAREND 1991 COMBINATION OF NCNB CORP AND C&S/SOVRAN CORP EXPECTS TO COMPLETE MUCH OF THE REMAINING INTEGRATION OF THOSE OPERATIONS THIS YEAR A PROCESS WHICH IT SAID HAS BEEN RUNNING ON SCHEDULE OR EVEN AHEAD IT SAID BY THE TIME IT IS LIKELY TO OBTAIN REGULATORY APPROVAL TO ACQUIRE MNC IT WILL BE FINISHING MUCH OF THAT WORK AND BE READY TO TURN ITS ATTENTION TO BRINGING MNC INTO THE FOLD THEY CLEARLY HAVE AN INTEGRATION CHALLENGE AHEAD SAID DENNIS F SHEA AN ANALYST WITH MORGAN STANLEY & CO BUT THEY HAVE A GOOD RECORD AND A LOT OF EXPERIENCE 9302190208 930219 ELAN ENERGY PLANS TO SELL STOCK CALGARY ALBERTA ELAN ENERGY INC SAID IT PLANS TO OFFER NINE MILLION ADDITIONAL COMMON SHARES TO THE CANADIAN PUBLIC AT 12 CANADIAN DOLLARS US950 A SHARE FOR GROSS PROCEEDS OF C108 MILLION THE SHARE ISSUE IS SUBJECT TO COMPLETION OF ELAN'S AGREEMENT IN PRINCIPLE TO BUY OMV CANADA LTD FROM OMV GRUPPE OF AUSTRIA FOR C180 MILLION OMV CANADA AND ELAN ARE BOTH OIL AND GAS PRODUCING COMPANIES ELAN SAID THE SHARES WON'T BE REGISTERED IN THE US AND WILL BE OFFERED ONLY IN CANADA THE COMPANY CURRENTLY HAS ABOUT 368 MILLION SHARES OUTSTANDING ELAN CLOSED YESTERDAY AT C12875 UP 375 CANADIAN CENTS ON THE TORONTO STOCK EXCHANGE 9302190207 930219 WHO'S NEWS VARIAN ASSOCIATES INC VARIAN ASSOCIATES INC PALO ALTO CALIF PAUL G STERN 54 YEARS OLD WAS NAMED A DIRECTOR OF THIS ELECTRONICS CONCERN FILLING A VACANCY ON THE 15MEMBER BOARD MR STERN WHO HAS BEEN MENTIONED AS A SERIOUS CONTENDER FOR THE CHIEF EXECUTIVE POSITION AT INTERNATIONAL BUSINESS MACHINES CORP IS CHAIRMAN OF NORTHERN TELECOM LTD IN TORONTO 9302190206 930219 NASD MOVES TO DISCIPLINE FIRMS MEMBERS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATIONS OF ITS RULES AND SECURITIES LAWS DILLON SECURITIES INC SPOKANE WASH WAS EXPELLED FROM MEMBERSHIP AND PRINCIPAL CONRAD C LYSLAK WAS FINED 15000 AND SUSPENDED FOR 10 DAYS THE NASD SAID THE FIRM PARTICIPATED IN ILLEGAL DISTRIBUTION OF UNREGISTERED SECURITIES AND FAILED TO TAKE NECESSARY SUPERVISORY MEASURES MR LYSLAK HAS APPEALED THE ACTION TO THE SECURITIES AND EXCHANGE COMMISSION MLB INVESTMENTS LTD DENVER WAS FINED 50000 EXPELLED AND REQUIRED TO PAY 132928 IN RESTITUTION TO CUSTOMERS PRINCIPAL FRED A BORRIES JR LAKEWOOD COLO WAS FINED 10000 AND SUSPENDED FOR 30 DAYS IN ANY CAPACITY AND FOR ONE YEAR IN ANY PRINCIPAL CAPACITY JAMES W MAGNER A DENVER BROKER WAS FINED 10000 AND SUSPENDED FOR THREE DAYS PRINCIPAL KENNETH L LUCAS ENGLEWOOD COLO WAS BARRED THE NASD SAID THE FIRM CHARGED CUSTOMERS EXCESSIVE MARKUPS AND ENGAGED IN FRADULENT PRACTICES IN TRADING A COMMON STOCK AMONG OTHER VIOLATIONS UNLESS OTHERWISE NOTED THE FIRMS AND PEOPLE CHARGED BY THE NASD EITHER COULDN'T BE REACHED TO COMMENT OR DECLINED TO COMMENT FIRST CHOICE SECURITIES CORP ENGLEWOOD COLO AND PRINCIPAL SHELDON O FERTMAN WERE FINED 100916 THE FIRM WAS FINED AN ADDITIONAL 50000 AND SUSPENDED FOR 30 DAYS MR FERTMAN WAS FINED AN ADDITIONAL 50000 AND BARRED ANOTHER PRINCIPAL GREGORY F WALSH WAS FINED 63262 AND ORDERED TO REQUALIFY BY EXAMINATION THE NASD SAID THE FIRM ACTING THROUGH MR FERTMAN EFFECTED PRINCIPAL SALES OR CAUSED CUSTOMER ORDERS TO BE RECEIVED AND PROCESSED FOR PURCHASES OF SECURITIES AT UNFAIR AND UNREASONABLE PRICES THE MARKUPS ON THESE TRADES RANGED FROM 444 TO 60 OVER THE FIRM'S COST FOR THE SECURITIES AND VIOLATED NASD'S MARKUP POLICY IN A SEPARATE CASE THE NASD SAID MR FERTMAN AND AN ASSOCIATED PERSON JOHN COX AGREED ON A SETTLEMENT WHEREBY MR FERTMAN WAS FINED 100000 AND BARRED MR COX WAS FINED 25000 AND SUSPENDED FOR SIX MONTHS AFTER WHICH HE MUST REQUALIFY BY EXAMINATION NASD SAID THAT WHILE MR FERTMAN AND MR COX NEITHER ADMITTED NOR DENIED THE ALLEGATIONS THEY CONSENTED TO THE SANCTIONS AND THE FINDINGS THAT A FORMER NASD MEMBER FIRM THROUGH MR FERTMAN FAILED TO MAINTAIN MINIMUM REQUIRED NET CAPITAL AND FILED AN INACCURATE REPORT AMONG OTHER VIOLATIONS SOUTHEASTERN CAPITAL GROUP INC MAITLAND FLA WAS FINED 25000 AND SUSPENDED FOR 90 DAYS PRINCIPAL RICHARD TOBITT WAGNER WAS FINED 25000 AND BARRED IN A SUPERVISORY OR PRINCIPAL CAPACITY BASED ON FINDINGS THAT THE FIRM FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL AND TO MAINTAIN ACCURATE BOOKS AND RECORDS YORK SECURITIES INC NEW YORK AND PRINCIPAL DAVID J CORCORAN MANHASSET NY WERE FINED 10000 JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE FULL AMOUNT AND SUSPENDED FROM CONDUCTING CERTAIN BLOCK TRADING ACTIVITY THEY DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY ENGAGED IN AN UNREGISTERED DISTRIBUTION OF COMMON STOCK AND WARRANTS IN A BLIND POOL MR CORCORAN SAID HE AGREED TO THE SETTLEMENT BECAUSE IT WAS EASIER THAN CONTESTING THE CHARGES IT'S JUST EASIER TO SETTLE OTHERWISE IT WOULD HAVE BEEN A LONG AND DRAWN OUT PAIN IN THE NECK BC CHRISTOPHER SECURITIES CO KANSAS CITY MO WAS FINED 50000 AND BROKER RICHARD COE GARTON KANSAS CITY KAN WAS FINED 30000 AND SUSPENDED FOR SIX MONTHS FOR FAILING TO MAINTAIN ACCURATE SUPERVISORY PROCEDURES AND PROPERLY SUPERVISE A SALES REPRESENTATIVE CHARLES PADGETT GENERAL COUNSEL FOR FAHNESTOCK & CO A BROKERAGE CONCERN THAT ACQUIRED SOME BC CHRISTOPHER ASSETS SINCE THE EVENTS IN QUESTION NOTED THAT THE LIABILITY FOR THE EVENTS INVOLVED CARRY TO THE SUCCESSOR FIRM TO CHRISTOPHER MR PADGETT SAID THAT FIRM IS MCW INC WHICH IS A SUBSIDIARY OF CENTRAL LIFE ASSURANCE CO DES MOINES IOWA GATEWAY SECURITIES INC GREENWICH CONN AND PRINCIPAL HOLMER P GRONAGER AMELIA ISLAND FLA WERE FINED 25000 JOINTLY AND SEVERALLY AND MR GRONAGER WAS BARRED BROKER DAVID E WESTON MIAMI BEACH FLA WAS FINED 25000 AND BARRED BASED ON FINDINGS THAT THE FIRM AND TWO MEN FAILED TO PAY A 227250 ARBITRATION AWARD LAKE SECURITIES INC LEWISVILLE TEXAS AND PRINCIPAL HUEY B HICKS WERE FINED 15000 JOINTLY AND SEVERALLY THE SEC IMPOSED THE SANCITONS FOLLOWING AN APPEAL ON FINDINGS THAT THE FIRM PURCHASED SECURITIES FROM AN INSTITUTIONAL CUSTOMER AND CHARGED AN EXCESSIVE MARKDOWN AIBC INVESTMENT SERVICES CORP MIAMI AND PRINCIPALS WILLIAM BURDETTE CORAL GABLES FLA AND WIFREDO GORT MIAMI WERE FINED 12500 JOINTLY AND SEVERALLY THEY DIDN'T ADMIT OR DENY ALLEGATIONS THE FIRM FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL SIMMONS & BISHOP CO SCOTTSDALE ARIZ AND PRINCIPAL EVELYN K SIMMONS WERE FINED 10000 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY FILED TO SUPERVISE THE ACTIVITIES OF TWO BROKERS THOMAS F WHITE & CO SAN FRANCISCO AND BROKERS JOHN WARREN BOUDINOT SAN FRANCISCO AND HENRY WALTER BINEAULT DANIELSON CONN WERE FINED 10000 JOINTLY AND SEVERALLY FOR CHARGING EXCESSIVE MARKUPS THE FIRM AND MR BOUDINOT HAVE APPEALED THE ACTION TO THE SEC MR BOUDINOT SAID THE COMPANY IS APPEALING THE NASD DECISION TO THE SEC WE HOPE THE NASD RULING IS REVERSED HE SAID INDIVIDUALS DISCIPLINED INCLUDED ANTHONY J AMARADIO BLOOMFIELD HILLS MICH FINED 10000 AND SUSPENDED 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ANGELISSE KAY ATHAN OLDSMAR FLA FINED 50000 BARRED AND REQUIRED TO PAY 39000 IN RESTITUTION DIANN J BRIGHT COUNTRY CLUB HILLS ILL FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYNG ALLEGATIONS DAUNICE M BUNN JOHNSTOWN PA FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOSEPH DENNIS CATTEN MAGNA UTAH FINED 2500 JOINTLY AND SEVERALLY WITH A MEMBER FIRM AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS WAYNE ALLEN DELONEY SAN CLEMENTE CALIF FINED 15780 AND BARRED AND CAROLYN R DELORRAINE BOULDER COLO FINED 11281 AND SUSPENDED FIVE BUSINESS DAYS ALSO CHRISTI ANN EDWARDS NASHVILLE TENN FINED 1000 AND SHE COMPLETED A TWOWEEK SUSPENSION WMITHOUT ADMITTING OR DENYING ALLEGATIONS GEORGE H ELLIS IV CARY NC FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DENNIS W GADDY RALEIGH NC FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS RICHARD E GARCIA BOCA RATON FLA FINED 13200 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GORDON T GOULD WASHINGTON FINED 10000 AND BARRED AS A FINANCIAL AND OPERATIONS PRINCIPAL MICHAEL GEORGE GUNDZIK GREENWOOD VILLAGE COLO FINED 20000 AND SUSPENDED FOR 180 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS TRAN DU HONG ORANGE CALIF FINED 23602 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT HARRY JOYCE ARVADA COLO SUSPENDED FOR 15 BUSINESS DAYS ROLAND K KAESER BARRINGTON HILLS ILL FINED 10000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS GARY K KERTZMAN DEERFIELD BEACH FLA FINED 50000 AND BARRED PAUL C KETTLER CHICAGO FINED 10000 AND SUSPENDED FOR 30 DAYS AND KENNETH L KOCH PINCONNING MICH FINED 1000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO RICHARD L LAREW FORT LAUDERDALE FLA FINED 25000 AND SUSPENDED FOR 15 BUSINESS DAYS JAMES H MARA MICHIGAN CITY IND FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS EDDIE L MCNEILL PASADENA TEXAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT DAVID MEERKREEBS LA JOLLA CALIF FINED 25000 AND BARRED WILLIAM HILTON MONEY JR VENTNOR NJ SUSPENDED FOR THREE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT WRIGHT MORGAN CASSELBERRY FLA FINED 30000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM LOUIS MORGAN DANVILLE CALIF BARRED THE ACTION HAS BEEN APPEALED TO THE SEC DONALD HARVEY NORRIS ORANGE PARK FLA BARRED ROGER LEE PARSONS BALTIMORE OHIO FINED 165000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MR PARSONS SAID THE 165000 FINE HAS BEEN SUSPENDED UNLESS I TRY TO REAFFILIATE WITH ANY NASD MEMBER HE SAID THERE WAS NO WRONGDOING ON HIS PART AND THE VIOLATIONS OCCURRED AT A BRANCH OFFICE OF HIS FIRM PARSONS SECURITIES INC COLUMBUS OHIO THE FIRM IS CURRENTLY IN CHAPTER 7 LIQUIDATION PROCEEDINGS IN BANKRUPTCY COURT NO PUBLIC CUSTOMERS LOST MONEY AS A RESULT OF MY ACTIVITIES HE ADDED I WAS ALSO DENIED LEGAL COUNSEL BY THE NASD AT MY HEARING AND THE NASD INCORRECTLY CALCULATED MY NET CAPITAL FOR THREE MONTHS ANNE T PETERS SCRANTON PA FINED 23000 AND BARRED ANTHONY LEE RICK BOCA RATON FLA FINED 5000 AND SUSPENDED SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL S ROHDENBURG ELMHURST ILL FINED 30000 AND BARRED RODNEY ALAN RUZANIC PALM HARBOR FLA FINED 20000 AND BARRED KEVIN J SAKSER MARIETTA GA FINED 20000 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS KEVIN MICHAEL SHORT ENCINO CALIF FINED 10000 AND BARRED ROY SMITH JACKSONVILLE FLA FINED 5000 AND BARRED THOMAS SPARKS SCOTTSDALE ARIZ FINED 1000 AND SUSPENDED 90 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS BRIAN ROBERT SUBATICH CHICAGO FINED 1000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS AND LORIN W SURPLESS TUCSON ARIZ SUSPENDED FOR NINE MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO J SPEED THOMAS NASHVILLE TENN FINED 2500 WITHOUT ADMITTING OR DENYING ALLEGATIONS DAVID C THOMPSON MUNCY PA FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS PHILIP J TOMKO BLOOMSBURG PA FINED 25000 AND BARRED PETER J UTTLEY BERKELEY CALIF FINED 75000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DEAN E WALKER KEZAR FALLS MAINE FINED 10000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS WAYNE D WHEELER FLORIDA NY FINED 10000 AND BARRED SCOTT ALLAN WILCOX PLANTATION FLA FINED 47965 AND BARRED AND BRUCE MARTIN ZIPPER MIAMI FINED 5000 AND BARRED THE ACTION HAS BEEN APPEALED TO THE SEC LYLE REINHARD HAAS VERADALE WASH WAS FINED 15000 JOINTLY AND SEVERALLY WITH A FORMER MEMBER FIRM KENNETH L LUCAS AN ENGLEWOOD COLO PRINCIPAL OF MLB INVESTMENTS LTD WAS SUSPENDED FOR 30 DAYS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR ONE YEAR BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC FOR ALLEGED RULES VIOLATIONS MR LUCAS DIDN'T ADMIT OR DENY THE ALLEGATIONS A FRIDAY ARTICLE INCORRECTLY SAID MR LUCAS HAD BEEN BARRED 9302190205 930219 BUSINESS BRIEF COCACOLA WINS BATTLE WITH 30 BOTTLERS AS 20 MILLION AWARD IS THROWN OUT PHILADELPHIA COCACOLA CO WON A MAJOR VICTORY IN A LONGRUNNING LEGAL BATTLE WITH A GROUP OF 30 BOTTLERS AS A FEDERAL APPEALSCOURT PANEL HERE THREW OUT A 20 MILLION AWARD TO THE BOTTLERS THE LITIGATION INVOLVING DIET COKE AND REGULAR COCACOLA AROSE FROM DISAGREEMENTS OVER COCACOLA'S REVISIONS TO ITS ORIGINAL CONTRACT WITH BOTTLERS SIGNED IN 1921 THE REVISIONS MADE IN 1978 AND 1983 GAVE COCACOLA FREEDOM TO RAISE SYRUP PRICES AND TO TAKE GREATER CONTROL OVER MARKETING ORIGINALLY ABOUT 100 BOTTLERS REFUSED TO ACCEPT THE REVISIONS IN 1981 THOSE BOTTLERS SUED COCACOLA ARGUING THAT THE COMPANY HAD REFUSED TO PASS ALONG SAVINGS TO BOTTLERS WHEN IT BEGAN USING LESSEXPENSIVE SWEETENERS IN ITS SYRUP FOR COCACOLA IN 1983 ABOUT 70 OF THE BOTTLERS FILED A SECOND SUIT OVER THE PRICE OF SYRUP FOR NEW DIET COKE THE BOTTLERS ARGUED THAT UNDER THE TERMS OF THE ORIGINAL CONTRACT THEY SHOULD BE ABLE TO ACQUIRE DIET COKE SYRUP AT THE SAME PRICE AS COCACOLA SYRUP IN 1991 A FEDERAL JUDGE IN WILMINGTON DEL RULED THAT COCACOLA BASED IN ATLANTA HAS THE RIGHT TO DECIDE WHEN TO RAISE PRICES FOR SWEETENERS USED IN COCACOLA AND FOR SYRUP USED IN DIET COKE BUT THE JUDGE ALSO FOUND THAT COCACOLA HAD CONTINUED TO CHARGE BOTTLERS FOR A SUGARBASED SYRUP EVEN THOUGH THE COMPANY HAD SUBSTITUTED A LESSEXPENSIVE SWEETENER AND ORDERED COCACOLA TO PAY ABOUT 20 MILLION TO THE PLAINTIFFS WHOSE RANKS HAD DWINDLED TO 30 BECAUSE SOME WERE SOLD AND SOME ACCEPTED THE REVISIONS LATE WEDNESDAY THE APPEALSCOURT PANEL WHILE STATING THAT THE SOFTDRINK COMPANY HAD VIOLATED ITS CONTRACT WITH BOTTLERS ADDED THAT NO REAL DAMAGE HAD BEEN DONE BECAUSE CUSTOMERS CONTINUED TO BUY THE DRINKS IN UPHOLDING THE CONTRACT VIOLATION THE PANEL RULED THAT THE 30 BOTTLERS WERE ENTITLED TO NOMINAL DAMAGES OF 1 EACH ATTORNEYS REPRESENTING THE BOTTLERS COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR COKE SAID THE COMPANY WAS GRATIFIED BY THE DECISION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COKE CLOSED AT 4125 A SHARE UP 375 CENTS 9302190204 930219 WHO'S NEWS DOCUCON INC DOCUCON INC SAN ANTONIO TEXAS CHAUNCEY E SCHMIDT THE 61YEAROLD CHAIRMAN OF CE SCHMIDT & ASSOCIATES OF MANCHESTER NY WAS NAMED TO THE BOARD OF THIS DOCUMENTPROCESSING COMPANY FILLING THE SEAT VACATED BY WILLIAM K MACKEY 40 WHO RESIGNED LAST NOVEMBER 9302190203 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT BUSINESS PLAN HELP WANTED MANY BLACK ENTREPRENEURS FEEL A SPECIAL RESPONSIBILITY TO HIRE MINORITIES IT ISN'T ALWAYS EASY BY GAUTAM NAIK AS BLACKOWNED FIRMS INCREASINGLY ENTER THE BUSINESS MAINSTREAM THEY FIND THEMSELVES FACED WITH A DIFFICULT AND SOMETIMES DELICATECHALLENGE HIRING AND KEEPING CAPABLE EMPLOYEES THE OWNER OF A GOSPEL RADIO STATION IN COLUMBUS MISS COMPLAINS THAT PEOPLE WITH TALENT WANT A LARGER MARKET AND AREN'T KEEN ON BEING STUCK IN RURAL NORTHEAST MISSISSIPI THE BUSINESS EDITOR OF A BLACKOWNED CLEVELAND PAPER OFTEN WRESTLES WITH THE PROSPECT OF JOINING A LARGE WHITEOWNED PAPER THE BLACK OWNER OF A SAUSAGEMAKING FIRM IN KENOSHA WIS WISHES THAT ALL HIS MANAGERS WERE MINORITYGROUP MEMBERS BUT SAYS THAT THE DEARTH OF QUALIFIED BLACKS MAKES THAT UNREALISTIC THE STRUGGLE TO HIRE THE RIGHT PEOPLE FOR THE RIGHT JOB IS OF COURSE A PROBLEM THAT ALL SMALL BUSINESSES FACE SMALL FIRMS OFTEN CAN'T AFFORD TO PAY TOP SALARIES TO ATTRACT THE BEST JOB APPLICANTS THEY ALSO FIND THAT MANY AMBITIOUS APPLICANTS PREFER TO JOIN LARGER FIRMS WHERE THEY ENJOY HIGHER PROFILES IN THE BUSINESS COMMUNITY BUT BLACK ENTREPRENEURS FACE HIRING PREDICAMENTS UNIQUE TO THEIR BUSINESSES SPECIFICALLY DO THEY HAVE A SPECIAL RESPONSIBILITY TO HIRE MINORITIES IF SO HOW DO THEY HIRE BLACK MANAGERS WHEN THE POOL OF QUALIFIED BLACKS THOUGH GROWING IS STILL SMALL AND HOW DO THEY PREVENT ACCOMPLISHED MANAGERS FROM BEING LURED AWAY BY PROMINENT WHITE FIRMS EAGER TO HIRE MEMBERS OF MINORITY GROUPS CURTIS MOODY THE PRESIDENT AND CHIEF EXECUTIVE OF MOODY/NOLAN INC AN ARCHITECTURALENGINEERING FIRM IN COLUMBUS OHIO RECALLS THE TIME HE WOOED AWAY A BLACK ARCHITECT FROM A WHITEOWNED FIRM AFTER WE HIRED HIM THE WHITE FIRM WAS CRITICIZED BECAUSE IT DIDN'T HAVE ENOUGH MINORITIES ON ITS STAFF SAYS MR MOODY WHO IS BLACK SO THEY HIRED THIS GUY RIGHT BACK WE JUST COULDN'T COMPETE IN THE BIDDING WAR AN INABILITY TO COMPETE THOUGH HAS RAMIFICATIONS WELL BEYOND THE PERSONNEL OFFICE IT ALSO CAN HAVE A PROFOUND EFFECT ON THE BUSINESS ITSELF AS MANY BLACKOWNED FIRMS COMMITTED TO THE IDEA OF HIRING MEMBERS OF MINORITIES MAKE DO WITH LESSQUALIFIED EMPLOYEES I'VE FOUND THAT BLACK FIRMS TEND TO BE A LITTLE MORE LENIENT IN WHAT THEY REQUIRE FROM THEIR BLACK EMPLOYEES SAYS PAUL ANDERSON BUSINESS EDITOR OF THE BLACKOWNED NEWSPAPER CALL AND POST IN CLEVELAND ADDS MR ANDERSON WHO IS BLACK THEY HAVE TO TAKE THE LEFTOVERS FROM THOSE THAT DIDN'T MAKE THE LARGER WHITE FIRMS IN MANY WAYS BLACKOWNED FIRMS SUFFER THE SAME STIGMA WITH PROSPECTIVE EMPLOYEES AS THEY DO WITH BANKERS FOR INSTANCE A SHORTAGE OF CAPITAL A PARTICULAR PROBLEM FOR MINORITYOWNED FIRMS FRIGHTENS AWAY SOME JOB APPLICANTS WHO WORRY THAT SMALL BLACKOWNED COMPANIES WON'T SURVIVE YOU DON'T WANT TO JOIN A FIRM THAT'S GOING TO DIE IN A FEW YEARS SAYS LAWRENCE JOHNSON DEAN OF HOWARD UNIVERSITY'S SCHOOL OF BUSINESS IN WASHINGTON BUT SOME OF THE ONUS ALSO RESTS ON THE SHOULDERS OF BLACK ENTREPRENEURS EDWARD IRONS DEAN OF THE SCHOOL OF BUSINESS AT ATLANTA UNIVERSITY SAYS THAT BLACK BUSINESS OWNERS SOMETIMES IGNORE THE BEST CANDIDATES BECAUSE THEY FEEL THAT AN EMPLOYEE WITH A BUSINESS DEGREE ISN'T WORTH THE HIGHER SALARY THE WISDOM TO HIRE MINORITY TALENT DOESN'T ALWAYS EXIST AMONG MINORITY OWNERS MR IRONS SAYS DEAN JOHNSON SUGGESTS THAT MORE BLACKOWNED FIRMS COULD GET AROUND THIS PROBLEM BY OFFERING MINORITY JOB APPLICANTS AN EQUITY STAKE IN THE FIRM THIS OFTEN TENDS TO BE PREFERABLE TO FACING A GLASS CEILING AT WHITEOWNED FIRMS HE SAYS BLACKOWNED FIRMS ALSO NEED TO MARKET THEMSELVES MORE AGGRESSIVELY PARTICULARLY TO GRADUATES OF THE BUSINESS PROGRAMS OF THE NATION'S PREDOMINANTLY BLACK COLLEGES DEAN JOHNSON SAYS SOME BLACK ENTREPRENEURS ALSO SAY THAT AS MUCH AS THEY WOULD LIKE TO HIRE MEMBERS OF MINORITY GROUPS THEY OFTEN HAVE TO STEP BACK FROM A HARDLINE STANCE FRANK BROOKS OWNER OF BROOKS SAUSAGE CO KENOSHA WIS SAYS IT IS RELATIVELY EASY TO FIND MINORITYGROUP MEMBERS TO FILL ENTRYLEVEL POSITIONS MY ADVERTISEMENTS SAY SUCCESSFUL MINORITY FIRM LOOKING FOR A ' SAYS MR BROOKS THAT'S A SIGNAL IF YOU DON'T FEEL COMFORTABLE DON'T APPLY IF YOU DO FEEL COMFORTABLE PLEASE DO IT WORKS BOTH WAYS BUT THINGS HAVE BECOME DICIER NOW THAT THE SEVENYEAROLD COMPANY HAS 150 EMPLOYEES AND 30 MILLION IN ANNUAL REVENUE AS THE COMPANY HAS GROWN AND NEEDED MORE MANAGERS FINDING QUALIFIED MEMBERS OF MINORITIES TO FILL ALL THE SLOTS HAS BECOME MORE DIFFICULT THE RESULT MR BROOKS SAYS THAT ALTHOUGH HE WOULD LIKE TO HIRE MORE BLACK MANAGERS HE HAS HAD TO CONSCIOUSLY HIRE MORE NONMINORITIES OF THE COMPANY'S 12 TOP MANAGERS EIGHT ARE WHITE PROMOTING STAFF MEMBERS AT MINORITYOWNED BUSINESSES ALSO CAN BE TRICKY MICHAEL GUTHRIE OF TRUMARK INC A LANSING MICH WELDEDASSEMBLIES MAKER SAYS HE RECEIVED COMPLAINTS FROM BLACKS WOMEN AND HISPANICS AFTER HE PROMOTED A WHITE EMPLOYEE THEY ACCUSED HIM OF PROMOTING THE EMPLOYEE SIMPLY TO PROVIDE MORE RACIAL BALANCE LATER WHEN HE PROMOTED A BLACK EMPLOYEE HE RECEIVED SIMILAR COMPLAINTS FROM NONBLACK WORKERS WE'RE DAMNED IF WE DO AND DAMNED IF WE DON'T HE SAYS ON OCCASION HOWEVER BLACKOWNED FIRMS WILL PREFER TO HIRE A WHITE EMPLOYEE OVER A MINORITY EMPLOYEE BENNIE TURNER PRESIDENT OF WACR AMFM A GOSPELMUSIC RADIO STATION IN COLUMBUS MISS SAYS HE OFTEN HIRES WHITES FOR ADVERTISINGSALES POSITIONS BECAUSE MOST PEOPLE MAKING THE DECISIONS TO ADVERTISE IN THE BUSINESS COMMUNITY ARE WHITE AS LONG AS PERSONAL RELATIONSHIPS ARE A FACTOR IN BUSINESS DECISIONS THIS IS GOING TO BE A REALITY MR TURNER SAYS IT DOESN'T BOTHER ME IF SOME BLACKS HESITATE TO JOIN A BLACKOWNED FIRM OTHERS HAVE CONSCIOUSLY GRAVITATED TOWARD THEM MR ANDERSON OF THE CALL AND POST IN CLEVELAND AND A FORMER STOCKBROKER FOR MERRILL LYNCH & CO HAS BEEN WOOED BY A NUMBER OF WHITEOWNED PAPERS BUT HE HASN'T ANY INTENTION OF JUMPING IT'S A BIT OF A MESSIANIC THING THAT'S WHAT IT'S COME DOWN TO SAYS MR ANDERSON SOMEONE HAS TO SACRIFICE TO MAKE BLACK INSTITUTIONS BETTER SOMEONE HAS TO PROVE THAT IT'S OK FOR BLACKS TO DO WELL IN BUSINESS BRUCE A HARRIS AN ARCHITECT AT BLACKOWNED MOODY/NOLAN HAS ALSO FELT THE MESSIANIC PULL HIS CAREER PROBABLY BEST MIRRORS SOME OF THE OPPORTUNITIES AND DIFFICULTIES FACING THE HIGHACHIEVING BLACK PROFESSIONAL TODAY DESPITE HIS EDUCATION AND EXPERIENCE AS AN ARCHITECT THE 38YEAROLD MR HARRIS SAYS HE WASN'T SURE IF HE HAD WHAT IT TOOK TO SUCCEED IN A LARGE WHITEOWNED FIRM BUT BY JOINING AND MAKING RAPID PROGRESS AT NBBJ INC OF SEATTLE ONE OF THE NATION'S 10 LARGEST ARCHITECTURAL FIRMS HE LAID TO REST SOME OF HIS DOUBTS I FOUND THAT NOT ONLY DID I HAVE WHAT IT TOOK THE COMPANY SAW IT TOO SAYS MR HARRIS THEY ACKNOWLEDGED THIS BY PROVIDING OPPORTUNITIES AND EXPOSURE I WAS VERY HAPPY AT THE FIRM BEING A SUCCESSFUL BLACK AT A WHITEOWNED FIRM HOWEVER WASN'T ENOUGH MR HARRIS WANTED TO SUCCEED AS AN ENTREPRENEUR WHEN I LEFT THE MAJORITY FIRM I KNEW I COULD DESIGN ANY BUILDING ON THE PLANET HE SAYS BUT I ALSO WANTED TO DISPEL THE MYTH THAT MINORITY ARCHITECTS CAN'T DELIVER AT THE ENTREPRENEURIAL LEVEL MR HARRIS JOINED A MINORITYOWNED FIRM IN COLUMBUS OHIO BUT LEFT AFTER A YEAR AND A HALF TO WORK FOR MOODY/NOLAN LOOKING BACK AT HIS TIME WITH NBBJ HE SAYS HE HAS ONLY ONE REGRET THE WHITE FIRM HAD LARGER MORE PROFITABLE PRIVATESECTOR CONTRACTS WHICH WERE MORE PROFESSIONALLY CHALLENGING ON BALANCE HOWEVER MR HARRIS IS EXACTLY WHERE HE WANTS TO BE HE FIRST SUCCEEDED AT A LARGE WHITEOWNED FIRM AND NOW HE HAS OVERCOME THE STIGMA THAT SOME FEEL COMES WITH WORKING FOR A SMALL BLACKOWNED COMPANY THE REASON I'M AT MOODY/NOLAN IS BECAUSE I'M WILLING TO STRUGGLE THROUGH THE PROCESS OF BEING PROFESSIONALLY CREDIBLE HE SAYS MR NAIK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU ABOUT HALF OF BLACKOWNED FIRMS HAVE WORK FORCES THAT ARE AT LEAST 75 MINORITY A HIGHER PERCENTAGE THAN EXISTS AT OTHER FIRMS 9302190202 930219 WHO'S NEWS INFONOW CORP INFONOW CORP BOULDER COLO DAVID BUNNELL 45 YEARS OLD CHAIRMAN AND EDITOR IN CHIEF OF HYPERMEDIA COMMUNICATIONS INC OF SAN MATEO CALIF WAS NAMED TO THE BOARD OF THE COMPUTER SOFTWARE COMPANY INCREASING THE BOARD'S SIZE TO FIVE 9302190201 930219 MECHANICAL TECHNOLOGY UNIT LATHAM NY MECHANICAL TECHNOLOGY INC SAID ITS UNITED TELECONTROL ELECTRONICS INC UNIT PLEADED GUILTY TO MAIL FRAUD AND CONSPIRACY CHARGES AS PART OF A SETTLEMENT INVOLVING A 1984 CONTRACT WITH THE DEFENSE DEPARTMENT MECHANICAL TECHNOLOGY SAID ITS UNIT HAD ALSO CONDUCTED AN INTERNAL INVESTIGATION OF THE CHARGES WHICH INVOLVED PRODUCTION OF MAVERICK SINGLERAIL MISSILE LAUNCHERS FOR THE AIR FORCE AND TURNED OVER ITS FINDINGS TO THE AIR FORCE MECHANICAL TECHNOLOGY SAID THE EVENTS INVOLVING THE CONTRACT HAPPENED PRIOR TO 1987 WHICH IS WHEN IT TOOK OVER UNITED TELECONTROL UNITED TELECONTROL HAS DELIVERED MORE THAN 6000 OF THE LAUNCHERS TO THE AIR FORCE THE COMPANY SAID 9302190200 930219 LEISURE & ARTS ON SPORTS GONE ICE FISHING' BY FREDERICK C KLEIN MADISON WIS THERE COMES A TIME EVERY YEAR USUALLY IN FEBRUARY WHEN PEOPLE IN THE NORTHERN TIER OF THESE UNITED STATES WONDER IF WINTER WILL EVER QUIT THE SKIES COME ONLY IN SHADES OF GRAY THE TEMPERATURES RARELY RISE ABOVE FREEZING PEOPLE KNOW THAT DARKNESS IS SUPPOSED TO RECEDE EACH DAY BUT THE REVERSE SEEMS TRUE THE SENSIBLE COURSE IS TO TURN UP THE THERMOSTAT PUT ON A SWEATER AND WATCH IT ALL THROUGH A WINDOW AND WHEN THE URGE TO EXERCISE HITS THERE'S ALWAYS THE YMCA RACQUETBALL IS MY IDEA OF A WINTER SPORT AS THE PERPETRATOR OF AN ECLECTIC SPORTS COLUMN THOUGH I FEEL OBLIGED TO RANGE WIDELY NO MATTER WHAT THE SEASON AND NOT JUST WATCH BUT OCCASIONALLY DO ALAS THE MAIN WINTER ALTERNATIVES IN THE LATTER REGARD ARE ICE SKATING WHICH CAN INVOLVE JARRING CONTACT WITH A SURFACE THAT'S SLICK COLD AND HARD AND SKIING WHERE AMBULANCES WAIT AT THE END OF RUNS COLD WEATHER IS UNPLEASANT ENOUGH WITHOUT CRUTCHES BUT THERE'S ANOTHER WINTER SPORT THAT CONTAINS NO SUCH RISK IN FACT IT CONTAINS ALMOST NO RISK AT ALL SAVE THAT OF BOREDOM IT'S ICE FISHING AND MILLIONS OF PEOPLE DO IT WELL MAYBE THOUSANDS THEY DO IT IN SERIOUSLY COLD STATES LIKE WISCONSIN MINNESOTA NORTH DAKOTA AND VERMONT THEY DO IT FOR BIG FISH AND SMALL THEY DO IT INDOORS AS WELL AS OUT IN WHOLE COMMUNITIES OF FISH HOUSES THAT SPRING UP ON SOME LAKES AFTER THE COLD WEATHER SETS IN WITH THE RESIDENTS THEREOF FISHING THROUGH HOLES IN THEIR FLOORS SOME OF THOSE ABODES BOAST WOOD PANELING CARPETS AND GENERATOROPERATED TVS AND STEREOS ALTHOUGH I FOUND IT HARD TO BELIEVE I'D HEARD THAT SOME PEOPLE PREFER ICE FISHING TO THE SUMMER VARIETY WHEN I'D LOCATED MY ICEFISHING GURU STERLING BARTLETT OF THIS STATE CAPITAL AND UNIVERSITY CITY 150 MILES NORTH OF MY HOME NEAR CHICAGO MY FIRST QUESTION WAS WHETHER HE IS IN THAT NUMBER I'D RATHER FISH IN SHORTS THAN LEGGINGS ANYBODY SANE WOULD HE ANSWERED REASSURINGLY BARTLETT IS A SQUAREBUILT MAN OF 43 YEARS WHO'S A CARPET INSTALLER BY TRADE BUT A SPORTSMAN BY PREFERENCE A LIFELONG RESIDENT OF THE MADISON AREA HE BELIEVES THAT ONE SHOULD MAKE FRIENDS WITH THE LOCAL CLIMATE AND IN THAT SPIRIT HUNTS WHATEVER'S IN SEASON WITH RIFLE OR BOW AND FISHES YEAR AROUND HE USED TO SKI BEFORE A NECK VERTEBRA BROKEN IN A DIVING ACCIDENT CONVINCED HIM THAT DANGEROUS SPORTS COULD BE DANGEROUS TESTIMONY TO HIS PROWESS IN FOREST AND STREAM ARE THE TROPHIES ON WALLS OF THE HOME HE SHARES WITH HIS WIFE ANN AND CHILDREN ERIC 15 AND HEATHER 13 SUCH DECOR ALSO TESTIFIES TO ANN'S FORBEARANCE SHE'S NORWEGIAN HE SMILED AS THOUGH THAT EXPLAINS EVERYTHING BARTLETT ICEFISHED FAR AND WIDE IN HIS YOUNGER DAYS BUT NOW STICKS PRETTY MUCH TO THE LAKES AROUND HIS HOME THIS MEANT WE WOULD BE FISHING MAINLY FOR PERCH THEY'RE HERE AND THEY'RE GOOD EATING HE SAID OF THE SPECIES WHY GO FARTHER AS IT TURNED OUT OUR PARTY ON A RECENT THURSDAY MORNING NUMBERED FOUR I BROUGHT MY FRIEND SEYMOUR SHLAES A FORMER COPY EDITOR FOR THIS NEWSPAPER WHO'S RETIRED WHEN HE ISN'T OPERATING HIS WOOD SHOP BARTLETT BROUGHT ALONG HIS FRIEND MAURICE MO SCHLIMGEN WHO IS RETIRED WHEN HE ISN'T HELPING HIS SON INSTALL OFFICE PARTITIONS SHLAES IS LIKE ME IN THAT HE'S NOT SO MUCH A FISHERMAN AS SOMEONE WHO ENJOYS CATCHING FISH SCHLIMGEN IS THE REAL MCCOY A MAN WHO SPENT MUCH OF HIS WORKING LIFE AS A TAVERN OWNER SO HE COULD WORK NIGHTS AND FISH DAYS DRIVING TO THE NORTH SHORE OF LAKE MENDOTA IN 20DEGREE TEMPERATURES HE WAXED ENTHUSIASTIC ABOUT THE BIG LAKE'S FISHING HEYDAY I REMEMBER ONE DAY IN 1952 I THINK PULLING 174 PERCH THROUGH THE ICE INSIDE OF FOUR HOURS TWO DAYS LATER I CAUGHT 176 SUMMERS YOU COULD WALK ACROSS THE LAKE ON THE BOATS HE SAID IN SOME WAYS ICE FISHING BEATS FISHING FROM A BOAT IN SUMMER YOU CAN GET UP ANYTIME AND WALK AROUND FOR INSTANCE ON THE OTHER HAND THERE'S NO BOAT IN WHICH TO HAUL EQUIPMENT AND BECAUSE ORDINANCES PROHIBIT MOST VEHICLES AND FISH HOUSES ON LAKE MENDOTA WE HAD TO CARRY OURS ABOUT A MILE ACROSS SNOWCOVERED ICE AND LATER BACK THAT WAS THE DAY'S EXERCISE IN ICE FISHING LIKE REAL ESTATE THREE THINGS ARE IMPORTANT LOCATION LOCATION AND LOCATION BARTLETT PICKED OUR SPOT ON THE BASIS OF WHERE AND WHEN HE'D CAUGHT FISH PREVIOUSLY AND ON REPORTS FROM FELLOW ANGLERS BUT HE WARNED US NOT TO EXPECT TOO MUCH ICE FISHING'S FUNNY HE SAID YOU CAN CATCH FISH AND THE GUY A FEW FEET AWAY CAN GET BLANKED OTHERS HAD COME TO THE SAME SITE CONCLUSION HE DID BECAUSE ABOUT A DOZEN FISHERMEN HAD PLANTED THEMSELVES IN THE AREA BEFORE WE ARRIVED USING THE LARGE AUGERS WE'D BROUGHT WE DRILLED OUR FISHING HOLES OVER A SPACE OF ABOUT 20 SQUARE YARDS BASED ON A RULE OF THUMB OF A 1/2INCH PER TURN OF THE AUGER WE WERE ON ICE ABOUT 13 INCHES DEEP BARTLETT HANDED SHLAES AND ME SAWEDOFF FISHING RODS WITH LARGE OPEN REELS FOR BAIT WE USED TINY WHITE MAGGOTS HE SAID HE'D ORDERED BY MAIL AND KEPT IN HIS HOME REFRIGERATOR WONDERFUL WOMEN THOSE NORWEGIANS HE SAID TO LET OUR HOOKS FALL TO THE BOTTOM AND THEN RAISE THEM A COUPLE OF FEET AND THEN AND THEN YOU SIT SAID HE POINTING TO THE BUCKETS WE'D USED TO HOLD OUR EQUIPMENT THAT NOW WOULD BE OUR SEATS ACTION WAS BRISK AT FIRST BUT TRUE TO FORM UNEVEN SCHLIMGEN REELED IN 10 OR SO NICE PERCH OR WHITE BASS IN THE FIRST HALFHOUR BARTLETT GOT FOUR AND SHLAES GOT TWO SITTING BUT A FEW FEET FROM EACH I GOT BLANKED THERE WERE COMPENSATIONS THE TOWERS OF MADISON MAY BE MODEST BY MEGALOPOLIS STANDARDS BUT THEY SHIMMERED HANDSOMELY AT THE FAR END OF THE LAKE'S VAST WHITE SILENT EXPANSE THE HOMEMADE VENISON SAUSAGES BARTLETT COOKED UP FOR LUNCH ON A SMALL PORTABLE STOVE WERE TASTY THE TERM COLD BEER GAINED NEW MEANING WHEN THREE MORE HOURS PRODUCED RED NOSES BUT NO MORE FISH WE CALLED IT A DAY BUT EVEN OUR MODEST CATCH WAS BETTER THAN THAT OF OTHERS ON THE LAKE ANY LUCK WE ASKED A SOUL SITTING HUDDLED ALONG OUR PATH TO SHORE I'M HOPING A FISH WILL PULL MY POLE INTO THE HOLE AND I WON'T HAVE TO DO THIS ANYMORE SAID THE FELLOW GREAT SPORT ICE FISHING 9302190199 930219 WHO'S NEWS AMBAC INC AMBAC INC NEW YORK JOSEPH E VAN HOUTEN 47 YEARS OLD WAS ELECTED TO A NEW POSITION AS EXECUTIVE VICE PRESIDENT IN CHARGE OF CLIENT SERVICES FOR THIS MUNICIPAL BOND INSURER MR VAN HOUTEN A SENIOR VICE PRESIDENT SINCE JULY FORMERLY HAD BEEN MANAGING DIRECTOR FOR GLOBAL INVESTMENT MANAGEMENT FOR CITICORP 9302190198 930219 WHO'S NEWS WESTCOAST ENERGY INC WESTCOAST ENERGY INC VANCOUVER BRITISH COLUMBIA ARTHUR H WILLMS WAS APPOINTED PRESIDENT OF THIS NATURAL GAS PIPELINE AND DISTRIBUTION COMPANY MR WILLMS 63 YEARS OLD WHO IS ALSO CHIEF OPERATING OFFICER WAS AN EXECUTIVE VICE PRESIDENT AS PRESIDENT HE SUCCEEDS MICHAEL EJ PHELPS 55 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9302190197 930219 BUSINESS BRIEF DEFICIT OF NAVISTAR SHRANK TO 5 MILLION IN FISCAL 1ST QUARTER CHICAGO NAVISTAR INTERNATIONAL CORP'S LOSS FOR ITS FIRST QUARTER ENDED JAN 31 NARROWED TO 5 MILLION OR FIVE CENTS A SHARE FROM 32 MILLION OR 16 CENTS A SHARE REFLECTING HIGHER SALES VOLUME AND REDUCED OPERATING EXPENSES SALES ROSE 15 TO 103 BILLION FROM 902 MILLION PERSHARE FIGURES WERE AFFECTED BY NAVISTAR'S PREFERREDDIVIDEND REQUIREMENT THE TRUCK MAKER SAID ITS RETAIL DELIVERIES IN THE FISCAL FIRST QUARTER ROSE 13 TO 16800 UNITS SHIPMENTS OF MIDRANGE DIESEL ENGINES TO ORIGINAL EQUIPMENT MANUFACTURERS ROSE 18 REFLECTING INCREASED DEMAND IN BOTH THE US AND EXPORT MARKETS NAVISTAR HAS TAKEN MAJOR STEPS TO BEGIN IMPLEMENTING ITS PLAN TO ACHIEVE 200 MILLION IN MEDICAL AND OPERATING COST SAVINGS RECENTLY THE COMPANY AND THE UNION THAT REPRESENTS ITS RETIREES REACHED A TENTATIVE PACT ON RESTRUCTURING RETIREE HEALTHCARE AND LIFEINSURANCE BENEFITS THAT IS EXPECTED TO REDUCE NAVISTAR'S LIABILITY FOR THESE BENEFITS TO 1 BILLION FROM 26 BILLION ALSO THE COMPANY SAID IT PLANS A BROAD RANGE OF MANUFACTURING AND PRODUCT QUALITY IMPROVEMENTS DESIGN AND MATERIAL COST REDUCTIONS AND ADMINISTRATIVECOST REDUCTIONS TO IMPROVE OPERATING EFFICIENCY NAVISTAR SAID IT HAS REVISED UPWARD ITS PROJECTIONS FOR NORTH AMERICAN INDUSTRY DEMAND FOR MEDIUM AND HEAVY TRUCKS IN FISCAL 1993 THE COMPANY NOW PROJECTS NORTH AMERICAN INDUSTRY DEMAND FOR MEDIUM TRUCKS AND SCHOOL BUSES WILL RISE ABOUT 10 TO 129700 UNITS AND HEAVY TRUCK DEMAND IS NOW PROJECTED AT 147800 UNITS AN 18 INCREASE FROM 1992 9302190196 930219 WHO'S NEWS AAR CORP AAR CORP ELK GROVE VILLAGE ILL MARC TANENBERG FORMERLY TREASURER OF ROBERTSON CORP WAS NAMED VICE PRESIDENT STRATEGIC PLANNING AND BUSINESS DEVELOPMENT OF THIS SUPPLIER OF AEROSPACE AND AVIATION PRODUCTS AND SERVICES SUCCEEDING A LEE HALL WHO TOOK ANOTHER POST WITH THE COMPANY 9302190195 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP GETTING TOGETHER MINORITYOWNED BUSINESSES ARE NO LONGER SIMPLY SUPPLIERS TO BIG COMPANIES NOW THEY ARE PARTNERS BY UDAYAN GUPTA SOMETIMES IT PAYS FOR INTERNATIONAL BUSINESS MACHINES CORP TO THINK SMALL THE PURPOSE OF THIS AD IS TO INCREASE BUSINESS READ THE RECENT HEADLINE OF A FULLPAGE ADVERTISEMENT BY THE GIANT COMPUTER MAKER IN A MINORITYBUSINESS NEWSPAPER A RELATIONSHIP WITH IBM IS ONE YOU COULD VERY WELL BENEFIT FROM WE CAN EVEN SHOW YOU HOW TO SELL YOUR PRODUCTS JOINTLY WITH IBM NOT TO IBM WITH IBM FOR THE PAST TWO DECADES IBM AND HUNDREDS OF OTHER LARGE US COMPANIES SAW THEIR RELATIONSHIP WITH BLACKOWNED BUSINESSES AS A RELATIVELY SIMPLE ONE THE BIG COMPANIES SIGNED ON THE MINORITYOWNED FIRMS AS SUPPLIERS THE PURCHASING AGREEMENTS WHICH TODAY TOTAL SOME 20 BILLION ANNUALLY HAVE BEEN A BOON FOR MINORITYOWNED FIRMS BUT FOR MANY OF THE CORPORATE BUYERS THE RESULTS HAVE BEEN MIXED TRUE THE AGREEMENTS WERE GOOD FOR PUBLIC RELATIONS BUT MANY COMPANIES FOUND THEY WERE BUYING PRODUCTS AND SERVICES THAT WEREN'T ESSENTIAL AND WHOSE QUALITY WAS POOR NOW THEY ARE CHANGING THEIR APPROACH AND IN WAYS THAT SHOULD HELP BOTH THEMSELVES AND THE MINORITYOWNED FIRMS TODAY CORPORATIONS ARE LIKELY TO VIEW THE PURCHASE OF GOODS OR SERVICES FROM MINORITYOWNED FIRMS LESS AS THE END OF AN OBLIGATION AND MORE AS THE BEGINNING OF A LONGTERM BUSINESS RELATIONSHIP BESIDES FURNISHING THEIR SMALLER PARTNERS WITH ORDERS FOR PARTS AND REPAIR WORK CORPORATIONS ARE PROVIDING THEM WITH CAPITAL TO FINANCE THEIR EXPANSION AND MANAGEMENT SKILLS TO BOLSTER THEIR PRODUCTIVITY IN THE SHORT TERM IT'S GOOD PUBLIC RELATIONS IN THE LONG RUN IT'S GOOD FOR THE BOTTOM LINE SAYS ED BROWN PRESIDENT AND OWNER OF BROWN CAPITAL MANAGEMENT INC A BLACKOWNED BALTIMORE MONEY MANAGER THE GROWING NUMBER OF THESE ALLIANCES SIGNALS THE MATURATION OF MINORITYOWNED BUSINESS SAYS JOANN PRICE A STAMFORD CONN VENTURE CAPITALIST WHO ALSO HEADS THE NATIONAL ASSOCIATION OF INVESTMENT COMPANIES A WASHINGTON DC TRADE GROUP THAT REPRESENTS VENTURECAPITAL FIRMS THAT INVEST IN MINORITYOWNED COMPANIES STRATEGIC PARTNERING HAS BEEN GOING ON IN THE MAINSTREAM COMMUNITY FOR YEARS NOW AS MINORITYOWNED BUSINESSES GROW AND CHANGE THEY TOO ARE POTENTIALLY ATTRACTIVE ALLIES SOME OF THE NEW EFFORTS ARE BEING LED BY LOCAL BUSINESS ORGANIZATIONS IN BALTIMORE FOR INSTANCE BROWN CAPITAL MANAGEMENT AND SEVERAL OTHER ESTABLISHED MINORITYOWNED BUSINESSES RECENTLY BEGAN FORGING A BROAD COALITION WITH LOCAL WHITERUN CORPORATIONS ALREADY A BIG WHITEOWNED CONSTRUCTION COMPANY HAS FORMED A JOINT VENTURE WITH A MINORITYOWNED DEVELOPER AND SEVERAL OTHER PARTNERSHIPS ARE IN THE WORKS MANY OF US FELT THAT BLACK COMPANIES NEEDED TO GAIN REAL WORKING OPPORTUNITIES WITH BIG BUSINESSES SAYS JOSEPH HASKINS CHIEF EXECUTIVE OFFICER OF HARBOR BANK A BLACKOWNED BALTIMORE COMMUNITY BANK WITH ASSETS OF 53 MILLION MOST OF THE EFFORTS THOUGH ARE ON A COMPANYBYCOMPANY BASIS TECHNOLOGY AND TELECOMMUNICATIONS COMPANIES ARE AT THE FOREFRONT OF THE TREND TIMEWARNER INC FOR EXAMPLE HAS A JOINT VENTURE WITH THREE BLACKOWNED CABLE COMPANIES TO OPERATE A 185000HOME CABLE SYSTEM THAT TIMEWARNER BUILT IN NEW YORK CITY THEY HAVE THE KNOWLEDGE OF THE COMMUNITY AND KNOWHOW TO MARKET TO IT SAYS MARTIN PAYSON A VICE CHAIRMAN OF TIMEWARNER THE LINK ALSO HELPS POLISH HIS COMPANY'S IMAGE IN THE BLACK COMMUNITY IF BIG COMPANIES SUCH AS TIMEWARNER WANT TO SELL MORE TO BLACK CONSUMERS MR PAYSON SAYS IT'S IMPORTANT TO HAVE RELATIONSHIPS WITH AFROAMERICAN BUSINESSES AMERICAN TELEPHONE & TELEGRAPH CO IS WORKING WITH A HOST OF MINORITYOWNED FIRMS UNDER THE FEDERAL GOVERNMENT'S MENTORPROTEGE PROGRAM FOR EXAMPLE IT HAS SIGNED A 12 MILLION CONTRACT WITH BLACKOWNED NETWORK SOLUTIONS INC TO MANAGE SOME OF THE SERVICES AT&T PROVIDES TO THE FEDERAL BUREAUCRACY IN ADDITION IT IS PROVIDING TECHNICAL EXPERTISE TO THE SMALL HERNDON VA COMPANY WHEN RECEIVING FEDERAL CONTRACTS COMPANIES AGREE TO HIRE MINORITYOWNED FIRMS AS SUBCONTRACTORS FOR PART OF THE WORK THE MENTORPROTEGE PROGRAM IS ONE WAY THAT CORPORATIONS CAN FULFILL THAT OBLIGATION THESE ALLIANCES ARE STRICTLY BUSINESS SAYS JOHN CARTER AN ASSISTANT VICE PRESIDENT AT BELLSOUTH CORP WHICH IN MAY ANNOUNCED A JOINT CONSTRUCTION VENTURE WITH BLACKOWNED HJ RUSSELL CONSTRUCTION CO OF ATLANTA AS PART OF THE AGREEMENT RUSSELL WILL PROVIDE CONSTRUCTION SERVICES FOR MANY OF THE CONTRACTS THAT BELLSOUTH RECEIVES IT ALSO WILL FIND OTHER MINORITYOWNED VENDORS TO WORK WITH BELLSOUTH MR CARTER SAYS THAT AS THESE SUPPLIERS GET MORE BUSINESS THEY IN TURN WILL BECOME BIGGER CUSTOMERS OF BELLSOUTH'S TELECOMMUNICATIONS PRODUCTS THE MORE WE HELP BLACK BUSINESSES IN OUR AREA GROW THE MORE WE GROW OURSELVES HE SAYS FOR ITS PART IBM IS TURNING TO MINORITYOWNED DEALERS SUCH AS CREST COMPUTER SYSTEMS OF SKOKIE ILL TO SELL ITS COMPUTERS BUT THE RELATIONSHIPS DON'T ALWAYS STOP THERE IBM'S BUSINESSCONSULTING UNIT IS AMONG OTHER THINGS ADVISING SOME OF THE MINORITYOWNED FIRMS ON THEIR OVERALL BUSINESS STRATEGIES IBM ALSO IS LOOKING TO OTHER MINORITYOWNED FIRMS TO DEVELOP NICHE SOFTWARE FOR IBM COMPUTERS SAYS WILLIAM WASHINGTON MANAGER OF SMALLBUSINESS DEVELOPMENT FOR THE COMPANY'S FEDERALSYSTEMS SUBSIDIARY WHICH SELLS PRIMARILY TO THE GOVERNMENT IBM FIGURES IT CAN INCREASE ITS PENETRATION IN THE BLACK COMMUNITY IF IT CAN HELP DEVELOP IBMCOMPATIBLE SOFTWARE THAT IS TARGETED TO BLACK CONSUMERS MANY OF THESE SMALL SUPPLIERS MR WASHINGTON SAYS ARE A LOT MORE FLEXIBLE AND NIMBLE THAN THEIR MAINSTREAM COUNTERPARTS THEY CAN RESPOND FASTER THAN MANY BIG SUPPLIERS CAN HE SAYS BIG MEDIA AND ENTERTAINMENT COMPANIES ALSO HAVE BEEN ACTIVE IN SEEKING MINORITY MATCHES THREE UNITS OF MCA INC LAST SUMMER ANNOUNCED A SEVENYEAR CONTRACT WITH UPTOWN ENTERTAINMENT A NEW YORK CONCERN FOUNDED BY BLACK ENTREPRENEUR ANDRE HELLER TO PRODUCE FILMS MUSIC AND TELEVISION SHOWS TRISTAR PICTURES HAS A MULTIFILM CONTRACT WITH FILMMAKERS WARRINGTON AND REGINALD HUDLIN COLUMBIA PICTURES HAS A THREEPICTURE PACT WITH JOHN SINGLETON WHO WROTE AND DIRECTED BOYZ N THE HOOD AND TIMEWARNER AND SEVERAL OF ITS UNITS HAVE A RECORDING CONTRACT AS WELL AS A DEAL TO PRODUCE FILMS AND VIDEO WITH MUSIC PRODUCER QUINCY JONES MR JONES SAYS THAT SUCH DEALS ARE MAKING THE BIG COMPANIES DO THINGS THEY'VE NEVER DONE BEFORE THAT IS ENTER INTO LONGTERM CONTRACTS WITH MINORITYOWNED FIRMS AND RELY ON THESE FIRMS TO EXECUTE ENTIRE PROJECTS FROM CONCEPT TO FINAL PRODUCT AND THE DEALS HE SAYS ARE OF GREAT BENEFIT TO THE BLACK ENTREPRENEURS THEY TIMEWARNER ARE MASTERS OF MERCHANDISING AND KNOW HOW TO GET THE PRODUCT OUT THERE SAYS MR JONES I WOULDN'T BE ABLE TO DO ALL THAT ON MY OWN FORD MOTOR CO IS TAKING A NEW LOOK AT ITS DEALINGS WITH MINORITY ENTREPRENEURS WITH A VIEW TO PUTTING THE BEST AND THE BRIGHTEST ON A FAST TRACK DAVID BROPHY ASSOCIATE PROFESSOR OF FINANCE AT THE UNIVERSITY OF MICHIGAN ANN ARBOR IS DEVELOPING A PROGRAM FOR THE CAR MAKER THAT CALLS FOR A MUCH CLOSER COLLABORATION BETWEEN FORD AND ABOUT A DOZEN OF ITS KEY MINORITYOWNED SUPPLIERS IN THE PAST FORD HAD HUNDREDS OF SMALL MINORITYOWNED SUPPLIERS MANY OF WHICH NEEDED ASSISTANCE WITH FINANCING MANAGEMENT AND QUALITY NOT RECEIVING HELP HURT THESE COMPANIES AND ALSO AFFECTED FORD DR BROPHY SAYS BY CUTTING DOWN ON ITS NUMBER OF SUPPLIERS AND CHANGING ITS RELATIONSHIP WITH THEM FORD CAN GIVE MORE BUSINESS TO THESE SUPPLIERS AS WELL AS WORK WITH THEM ON VARIOUS ASPECTS OF THEIR BUSINESS IMPROVING PRODUCTION TECHNIQUES QUALITY CONTROL AND OVERALL EFFICIENCY MOREOVER A STRONGER SUPPLIERPARTNER MEANS FEWER DEMANDS ON FORD'S OWN RESOURCES FORD WANTED A WAY IT COULD HAVE A MORE DYNAMIC RELATIONSHIP WITH ITS MINORITYOWNED SUPPLIERS DR BROPHY SAYS BY INCREASING THE SCALE OF THESE COMPANIES YOU NOT ONLY CREATE A MORE SUCCESSFUL SUPPLIER YOU ALSO HELP THE CAUSE OF MINORITY ENTREPRENEURSHIP MR GUPTA IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190194 930219 WHO'S NEWS PETROCANADA PETROCANADA CALGARY ALBERTA ALFRED E BARROLL WAS NAMED CHAIRMAN OF THIS OIL AND GAS PRODUCER MR BARROLL 69 HAS BEEN A DIRECTOR SINCE 1984 AND IS PRESIDENT OF AE BARROLL RESOURCE CONSULTANTS LTD MR BARROLL'S LAST POST IN THE OIL INDUSTRY WAS VICE PRESIDENT EXPLORATION AND PRODUCTION WITH MOBIL OIL CANADA LTD FROM WHICH HE RETIRED IN 1982 HE SUCCEEDS WILBERT H HOPPER WHO WAS DISMISSED AS CHAIRMAN AND CHIEF EXECUTIVE LAST MONTH 9302190193 930219 WHO'S NEWS WILLIS CORROON GROUP PLC WILLIS CORROON GROUP PLC NEW YORK JAMES F DOWD 51 YEARS OLD WAS NAMED CHAIRMAN OF THIS INSURANCE BROKER'S G L HODSON & SON SUBSIDIARY A NEW POSITION HE WAS ALSO NAMED CHIEF EXECUTIVE OFFICER OF THE UNIT SUCCEEDING STEPHEN CRANE 47 WHO CONTINUES AS PRESIDENT MR DOWD WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SKANDIA AMERICA GROUP A REINSURANCE COMPANY 9302190191 930219 HOUSE REVIVES BILL ON RESTRUCTURING OF PARTNERSHIPS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE SUBCOMMITTEE APPROVED A REVIVED EFFORT TO GIVE INVESTORS MORE INFLUENCE IN THE RESTRUCTURING OF LIMITED PARTNERSHIPS THE MEASURE IS EXPECTED TO PASS EASILY IN THE FULL HOUSE AND LIKE A SIMILAR BILL LAST YEAR ATTRACT WIDESPREAD SUPPORT IN THE SENATE WITH THE NOTABLE EXCEPTION OF SEN PHIL GRAMM THE TEXAS REPUBLICAN WHO PREVIOUSLY BLOCKED THE BILL THE LEGISLATION APPROVED YESTERDAY BY A SUBCOMMITTEE OF THE HOUSE ENERGY AND FINANCE COMMITTEE WOULD ALLOW INVESTORS IN LIMITED PARTNERSHIPS TO OPT OUT OF RESTRUCTURINGS KNOWN AS ROLLUPS IN WHICH PARTNERSHIPS WITH A FINITE LIFE ARE COMBINED WITH OTHER PARTNERSHIPS INTO INFINITELIFE INVESTMENTS TRADED ON EXCHANGES SUCH ROLLUPS OFTEN GENERATE SUBSTANTIAL FEES FOR GENERAL PARTNERS AND OTHER SPONSORS OF THE RESTRUCTURING WHILE DEVALUING INVESTORS' STAKES IN ADDITION SOPHISTICATED WALL STREET INVESTORS AVOID ROLLUP STOCKS LIKE THE PLAGUE CONTRIBUTING TO LIMITED PARTNERS' LOSSES SAID SUBCOMMITTEE CHAIRMAN EDWARD MARKEY THE MASSACHUSETTS DEMOCRAT WHO IS A COSPONSOR OF THE BILL TO HELP PROTECT INVESTORS THE BILL WOULD REQUIRE THE APPOINTMENT OF A COMMITTEE INDEPENDENT OF THE GENERAL PARTNER OR SPONSOR TO REVIEW A PROPOSED ROLLUP ON BEHALF OF THE INVESTORS ALTHOUGH ROLLUPS HAVE SLOWED IN THE PAST YEAR THE BILL ALSO CALLS FOR A MORATORIUM ON SUCH RESTRUCTURINGS BETWEEN THE TIME THE LEGISLATION IS ENACTED AND THE WRITING OF FINAL RULES BY THE SECURITIES AND EXCHANGE COMMISSION THE BILL SAYS THE MORATORIUM COULD LAST AS LONG AS 18 MONTHS BUT GIVES THE SEC BROAD POWER TO GRANT EXEMPTIONS FOR SPECIFIC ROLLUPS IN THE SEVERAL MONTHS THAT THE BILL HAS BEEN BATTED AROUND CONGRESS THE SEC AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS PASSED RULES AIMED AT PROTECTING LIMITEDPARTNERSHIP INVESTORS ALTHOUGH NONE AS SWEEPING AS THE LEGISLATION BUT THE NASD AND SEC RULES ARE EXPECTED TO GIVE SEN GRAMM MORE AMMUNITION TO OPPOSE THE BILL THE SENATOR WHOSE HOME STATE OF TEXAS SPAWNED THOUSANDS OF LIMITED PARTNERSHIPS FOR INVESTMENT IN REAL ESTATE AND OIL AND GAS VENTURES PREVIOUSLY OBJECTED TO THE MEASURE ALLOWING INVESTORS TO VOTE AGAINST A ROLLUP SAYING SUCH POWER WOULD RUN COUNTER TO TRADITIONAL CONTRACT LAWS 9302190190 930219 ECONOMY EXTENSION OF FEDERAL JOBLESS BENEFITS APPROVED BY PANEL ALONG PARTY LINES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A PREVIEW OF HOW THE CLINTON ECONOMIC PLAN WILL SELL ON CAPITOL HILL THE HOUSE WAYS AND MEANS COMMITTEE DIVIDED ALONG PARTY LINES IN VOTING TO EXTEND FEDERAL JOBLESS BENEFITS THROUGH MIDJANUARY OF 1994 THE 56 BILLION PLAN WHICH IS EXPECTED TO BE BROUGHT TO THE HOUSE FLOOR WEDNESDAY WOULD ALLOW UNEMPLOYED WORKERS TO RECEIVE AS MUCH AS AN ADDITIONAL 26 WEEKS OF BENEFITS FROM THE FEDERAL GOVERNMENT AFTER EXHAUSTING THEIR STATE AID WORKERS WILL NEED TO APPLY BY OCT 2 BUT WORKERS WHO ALREADY RECEIVED FULL FEDERAL BENEFITS WON'T BE ELIGIBLE FOR ADDITIONAL PAYOUTS BOTH THE SENATE AND THE HOUSE ARE EXPECTED TO APPROVE THE MEASURE BEFORE THE CURRENT BENEFITS RUN OUT MARCH 6 THE CLINTON ADMINISTRATION IS PUSHING THE PLAN AS PART OF ITS ECONOMIC STIMULUS PACKAGE BENEFITS PAID IN THE CURRENT FISCAL YEAR ENDING SEPT 30 ARE EXPECTED TO TOTAL 32 BILLION ABOUT ONETENTH OF THE TOTAL STIMULUS PLAN WE ARE ASKING FOR A LITTLE BIT OF A DOWNPAYMENT ON THE OVERALL ECONOMIC PLAN LABOR SECRETARY ROBERT REICH TOLD THE COMMITTEE THE STIMULUS PROGRAM DOES REQUIRE THAT WE PUMPPRIME THE ECONOMY BUT THE PANEL DEFEATED BY VOICE VOTE ALONG PARTY LINES MR HOUGHTON'S AMENDMENT THAT WOULD HAVE INCREASED THE AMOUNT OF WITHHOLDING TAXES FROM PAYROLLS TO SET ASIDE MONEY TO PAY FOR THE PLAN THE ONLY ROLL CALL VOTE TO FIGHT A DEMOCRATIC PLAN TO BLOCK AMENDMENTS ON THE HOUSE FLOOR WAS VOTED DOWN 2314 WITH ONE DEMOCRAT NOT VOTING THIS IS A VERY DISTRESSING WAY TO START SAID NANCY JOHNSON R CONN IT MAKES A MOCKERY OF THE PRESIDENT'S PLEDGE OF DEFICIT REDUCTION AND REP BILL ARCHER R TEXAS SAID IF YOU WANT TO INCREASE THE DEFICIT AT THIS POINT THEN I GUESS THIS IS AN APPROPRIATE VEHICLE REPUBLICANS ALSO CALLED ON 23 STATES WITH FUNDS LEFT OVER FROM AN EARLIER UNEMPLOYMENT PROGRAM TO USE THOSE FUNDS FIRST A MOVE THAT WOULD HAVE TO BE TRIGGERED BY STATE LEGISLATURES BUT NO STATE HAS TAKEN SUCH A STEP AND DEMOCRATS WORRIED THAT UNEMPLOYMENT BENEFITS WOULD BE CUT OFF BEFORE PEOPLE COULD FIND JOBS YOU'RE GOING TO THROW THESE PEOPLE OUT ON THE STREET ASKED REP SANDER LEVIN D MICH FOR THE FIRST TIME THE BENEFITS WOULD BE LINKED TO A NEW SYSTEM OF PROFILING WHICH WOULD ALLOW STATES TO GROUP WORKERS BY WHETHER THEY EXPECT TO BE REHIRED SOON OR WHETHER THEY ARE PERMANENTLY DISPLACED FROM THEIR JOBS INDIVIDUALS WHO DON'T EXPECT TO BE REHIRED WOULD BE ELIGIBLE FOR CAREER COUNSELING AND JOB TRAINING PROGRAMS THE FEDERAL PROGRAM IS BEING MODELED AFTER A PILOT RECENTLY COMPLETED IN NEW JERSEY IN WHICH THE PROFILING PLAN ENABLED THE UNEMPLOYED TO BE PLACED IN JOBS QUICKER THUS SAVING THE GOVERNMENT ABOUT ONE WEEK OF BENEFITS PER WORKER MR REICH SAID IF YOU SHAVE A FULL WEEK OF UNEMPLOYMENT FOR PEOPLE ON AVERAGE YOU'RE SAVING A HUGE AMOUNT OF MONEY MR REICH SAID IN AN INTERVIEW AFTER TESTIMONY TO THE HOUSE COMMITTEE LATER IN THE DAY DURING TESTIMONY ON THE SAME SUBJECT AT THE SENATE FINANCE COMMITTEE MR REICH AGREED TO MEET WITH A NUMBER OF UNEMPLOYED WORKERS TO DISCUSS THE ADMINISTRATION'S DECISION NOT TO ALLOW WORKERS WHO ALREADY RECEIVED 52 WEEKS OF BENEFITS TO CONTINUE TO GET AID MR REICH LISTENED EMPATHETICALLY TO THE STORIES BUT ARGUED THAT EXTENDING AID WASN'T DESIRABLE BECAUSE OF THE HUGE FEDERAL DEFICIT AND CONCERNS THAT LENGTHENING BENEFITS COULD CREATE DISINCENTIVES TO FINDING WORK 9302190189 930219 NEW YORK MERC CHAIRMAN GUTTMAN REFUSES BOARD REQUEST THAT HE RESIGN BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE REFUSED TO RESIGN AT THE REQUEST OF THE EXCHANGE'S BOARD ONE DAY AFTER BEING CHARGED WITH CIVIL VIOLATIONS OF COMMODITY LAWS Z LOU GUTTMAN SAID IN A STATEMENT THAT HE FELT NO NEED TO RESIGN FROM HIS 100000 A YEAR POSITION AS HEAD OF THE NATION'S THIRD LARGEST COMMODITY EXCHANGE DESPITE A 133 VOTE BY THE EXCHANGE'S BOARD REQUESTING HIS RESIGNATION THE BOARD FELT IT WAS THEIR DUTY TO ASK HIM TO RESIGN SAID DANIEL RAPPAPORT THE MERC VICE CHAIRMAN WHO HEADED A 90MINUTE SPECIAL MEETING OF THE BOARD THE MEETING WAS CALLED BY THE 42YEAROLD MR GUTTMAN TO APPRISE MERC DIRECTORS OF THE FEDERAL CIVIL COMPLAINT ISSUED AGAINST HIM AND TO STATE HIS INTENTION TO SERVE OUT HIS TERM THERE ARE REAL BUSINESS ISSUES THAT ARE OF CRITICAL IMPORTANCE TO THE MEMBERS AND THAT IS WHAT BOARD MEMBERS SHOULD FOCUS ON MR RAPPAPORT SAID IN AN INTERVIEW NOTING THAT MEMBERS HAD EXPRESSED CONCERN AT THE MEETING THAT MR GUTTMAN'S CASE WITH THE COMMODITY FUTURES TRADING COMMISSION WOULD PROVE A SERIOUS DISTRACTION FOR THE GROUP AND FOR THE EXCHANGE AS A WHOLE MR GUTTMAN WHO IS UP FOR REELECTION NEXT MONTH FOR THE POST THAT HE HAS HELD SINCE 1988 SAID THAT THE STATUS OF HIS CHAIRMANSHIP SHOULD BE DECIDED BY THE MERC'S MEMBERSHIP RATHER THAN ITS BOARD MR RAPPAPORT IS SLATED TO RUN AGAINST MR GUTTMAN IN THE ELECTION MR GUTTMAN'S REFUSAL TO STEP DOWN PUTS THE NEW YORK MERC BOARD IN AN AWKWARD POSITION BOARD MEMBERS SAID WHILE THE BOARD DOES NOT HAVE THE AUTHORITY TO REMOVE ITS CHAIRMAN WHO IS ELECTED BY THE MEMBERSHIP IT CAN SUSPEND THE CHAIRMAN A SUSPENSION HOWEVER WOULD REQUIRE THAT TWOTHIRDS OF THE MEMBERSHIP OF THE MERC CONCUR WITH THAT DECISION WITHIN 30 DAYS OF THE SUSPENSION REQUEST WITH THE ELECTION FOR THE CHAIRMAN SLATED FOR MARCH 16 SOME MEMBERS SAID THAT A MOVE TO SUSPEND MIGHT NOT BE WORTH THE TROUBLE IN A SUBSEQUENT MEETING THE BOARD DECLINED BY A VOTE OF 10 TO 4 TO TAKE FURTHER ACTION REGARDING ITS CHAIRMAN LEAVING THE DECISION TO THE MEMBERSHIP ACCORDING TO THE EXCHANGE BYLAWS MR GUTTMAN HAS UNTIL TUESDAY TO DECIDE WHETHER HE WILL RUN FOR REELECTION JERRY MARKHAM AN ADVISER TO MR GUTTMAN SAID THE MERC CHAIRMAN INTENDS TO RUN FOR REELECTION AND TO FIGHT THE CHARGES AND SUBMIT HIMSELF TO THE MEMBERSHIP THE MERC'S SEVENMEMBER NOMINATING COMMITTEE RECENTLY SELECTED MR RAPPAPORT OVER MR GUTTMAN AS THE COMMITTEE'S NOMINEE ALTHOUGH MR GUTTMAN COULD STILL RUN IF ENOUGH MEMBERS PETITIONED FOR HIS CANDIDACY ON WEDNESDAY THE CFTC CHARGED MR GUTTMAN WITH NONCOMPETITIVE OR PREARRANGED TRADING AND OTHER VIOLATIONS AT ANOTHER NEW YORK EXCHANGE FROM MARCH THROUGH OCTOBER 1989 MR GUTTMAN AND TWO BROKERS HAROLD J MAGID AND GARY GLASS WERE ALLEGED BY THE CFTC TO HAVE ENGAGED IN ILLEGAL NORISK TRADES IN THE SUGAR OPTIONS PIT ON THE COFFEE SUGAR & COCOA EXCHANGE THE COMPLAINT ALLEGES THAT MR MAGID WAS ACTING FOR MR GUTTMAN MAKING MR GUTTMAN LIABLE FOR THE ALLEGATIONS AS A PRINCIPAL MR GUTTMAN DECLINED REQUESTS FOR INTERVIEWS HIS ATTORNEY BARRY H BOHRER SAID WEDNESDAY THAT THE CHARGES AGAINST HIS CLIENT ARE UNFOUNDED AND THAT HE IS CONFIDENT THAT MR GUTTMAN WILL BE FULLY VINDICATED NEITHER MR MAGID NOR MR GLASS NOR LAWYERS FOR EITHER COULD BE REACHED FOR COMMENT THE CFTC'S COMPLAINT THE FIRST OF ITS KIND AGAINST THE CHAIRMAN OF A MAJOR US COMMODITY EXCHANGE DOES NOT IN ITSELF REQUIRE MR GUTTMAN TO RESIGN HOWEVER IF THE CHARGES ARE UPHELD BY A CFTC ADMINISTRATIVE JUDGE MR GUTTMAN WOULD BE BARRED FROM SERVING AS THE EXCHANGE CHAIRMAN FOR AT LEAST THREE YEARS LAWYERS SAY HE COULD ALSO FACE FINES AND SUSPENSION OR REVOCATION OF TRADING PRIVILEGES A CFTC OFFICIAL SAID IT WOULD NOT BE UNUSUAL FOR A CASE LIKE THE ONE AGAINST MR GUTTMAN TO TAKE SEVERAL YEARS BEFORE FINAL ADJUDICATION 9302190188 930219 WHO'S NEWS SOGETI SA SOGETI SA PARIS FRANCIS A WATERS WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF ADMINISTRATIVE OFFICER NORTH AMERICA OF GEMINI CONSULTING INC A UNIT OF THIS FRENCH HOLDING COMPANY THE 58YEAROLD MR WATERS WAS PREVIOUSLY CHIEF ADMINISTRATIVE OFFICER FOR WORLDWIDE COMMERCIAL BUSINESS AT CONSULTING FIRM BOOZALLEN & HAMILTON INC 9302190187 930219 WHO'S NEWS VANS INC VANS INC ORANGE CALIF WALTER E SCHOENFELD 62 YEARS OLD A DIRECTOR OF THIS CASUAL FOOTWEAR MAKER WAS ELECTED A VICE CHAIRMAN OF THE BOARD 9302190186 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP NEVER SAY NEVER WHEN THE BANK SAYS NO IT'S TIME FOR SOME CREATIVE FINANCING BY DOROTHY J GAITER WHAT DO YOU DO WHEN THE BANK SAYS NO FOR SOME WOULDBE BUSINESS OWNERS BEING TURNED DOWN BRINGS AN ABRUPT END TO ENTREPRENEURIAL DREAMS FOR OTHERS A BANK'S REFUSAL IS A TEMPORARY SETBACK THAT CAN BE A CATALYST FOR DEVELOPING IMAGINATIVE AND EVEN INNOVATIVE WAYS OF FINANCING THEIR BUSINESS HERE ARE THREE ENTREPRENEURS WHO PERSEVERED DESPITE EARLY REJECTION THE REASON MY NOSE IS FLAT IS BECAUSE BANKS SLAMMED THEIR DOORS IN MY FACE JOKES MERCEDES KINNEE OWNER AND FOUNDER OF MERCEDES' CHEESECAKES INC IN FLINT TOWNSHIP MICH WHO WAS TURNED DOWN BY THREE BANKS BEFORE ONE EVENTUALLY RELENTED DURING THE 16 YEARS SHE WORKED AT GENERAL MOTORS SUPERVISING A CREW THAT BUILT GAS TANKS MS KINNEE SAYS SHE MOONLIGHTED MAKING CHEESECAKES HELPED BY HER HUSBAND KERWIN WHO ALSO WORKED AT GENERAL MOTORS SHE BAKED THE RICH CONFECTIONS OF CREAM CHEESE IN 60 FLAVORS IN THEIR GARAGETURNEDBAKERY MS KINNEE'S FIRST LARGE CUSTOMER WAS BOSLEY'S RESTAURANT IN FLINT SHE NEVER MISSED A DELIVERY DATE OR A DELIVERY TIME RECALLS DOUGLAS JOHN BOSLEY WHO HAS SINCE LEFT THE RESTAURANT TO START ANOTHER WHATEVER MY NEEDS WERE IF IT WAS AN EXTRA 10 CHEESECAKES SHE STAYED UP ALL NIGHT AND THE PEOPLE JUST LOVED THEM IN 1984 WHILE STILL WORKING AT GENERAL MOTORS MS KINNEE SOUGHT TO EXPAND HER CHEESECAKE BUSINESS BUT FIRST SHE NEEDED MORE SPACE SHE AND HER HUSBAND FOUND A BUILDING TO LEASE AND WENT TO THREE BANKS LOOKING TO BORROW 15000 TO 25000 TO RENOVATE AND FURNISH IT ALL THREE TURNED THE KINNEES DOWN THEIR BUSINESS PLAN DIDN'T SHOW ENOUGH INCOME TO PAY BACK LOANS MR KINNEE SAYS ABOUT THE SAME TIME MS KINNEE ALSO APPLIED FOR A 70000 LOAN UNDER A CITY PROGRAM FOR MINORITYOWNED BUSINESSES SHE WAS SO SURE OF BEING APPROVED THAT SHE PROCEEDED TO RENT THE BUILDING AND BUY BAKING EQUIPMENT AS WELL AS TABLES AND CHAIRS FOR A SMALL RESTAURANT THAT PROVED TO BE A MISTAKE HER APPLICATION WAS REJECTED MS KINNEE WAS IN A JAM TO KEEP HER EQUIPMENT FROM BEING REPOSSESSED SHE PROMISED TO PAY 200 A WEEK TO THE COMPANY THAT SOLD IT TO HER BUT SHE COULDN'T SELL ENOUGH CHEESECAKES TO COVER THAT AMOUNT PLUS HER OTHER BILLS SO SHE BEGAN SELLING OTHER FOOD IN THE RESTAURANT FRIEDFISH DINNERS SOUPS AND CROISSANTS MS KINNEE ALSO USED CREDIT CARDS TO BUY FURNISHINGS FOR THE BUSINESS AND EVEN SOLD HER MINK COAT FOR 5000 TO RAISE OPERATING CAPITAL BUT THE BUSINESS WAS STILL STRUGGLING AND IN 1985 SHE QUIT HER JOB AT GM TO DEVOTE ALL HER TIME TO CHEESECAKES MR KINNEE WAS TO FOLLOW TWO YEARS LATER SHE WAS SURE SHE COULD MAKE A GO OF IT TO RAISE MONEY MS KINNEE INVITED CUSTOMERS TO A LUNCHEON TO HEAR HER SALES PITCH SHE WAS SELLING STOCK IN KINNEE CHEESECAKES AT 5 A SHARE THIRTYEIGHT PEOPLE ATTENDED BUT 370 LUNCHEON BILL CAME MS KINNEE COULDN'T PAY FOR IT FORTUNATELY MS KINNEE RECALLS THERE WAS A LADY THERE AND SHE SAID I HAVE 1000 WHAT DO YOU WANT ME TO DO WITH IT' MS KINNEE USED A NAPKIN TO WRITE THE WOMAN A RECEIPT AND SHE PAID THE RESTAURANT'S BILL MS KINNEE LATER REPAID THE LOAN IN THE YEAR AFTER THAT LUNCHEON MS KINNEE SOLD 67000 OF SHARES TO PEOPLE WHO HAD ATTENDED BUT WITHIN WEEKS AND SOMETIMES DAYS OF THEIR PURCHASES MANY OF THE INVESTORS WOULD GET NERVOUS AND REDEEM THEIR SHARES OF THE 67000 ABOUT 37000 HAD TO BE REPAID AFTER A SHORT TIME THAT HURT IN 1988 MS KINNEE DECIDED TO GO BACK TO CITIZENS COMMERCIAL AND SAVINGS BANK IN FLINT WHICH EARLIER HAD REJECTED HER LOAN REQUEST I TOLD THE BANKER WHETHER YOU GIVE ME ANY MONEY OR NOT IF I HAVE TO STAND IN THE MIDDLE OF CORUNNA ROAD A MAIN FLINT STREET I'M GOING TO SELL THIS CHEESECAKE' MS KINNEE SAYS BUT IT STILL WASN'T ENOUGH A LITTLE OVER A YEAR AGO THE KINNEES AND THEIR BUSINESS FILED FOR PROTECTION UNDER THE BANKRUPTCY CODE THE BUSINESS HAS NOW REORGANIZED UNDER THE NAME MERCEDES' CHEESECAKES MS KINNEE 46 YEARS OLD SAYS THAT THE COMPANY INTENDS TO REPAY ALL THE INVESTORS AS WELL AS THE BANK IN FULL BUT THE BANKRUPTCY FILING WILL ALLOW THEM TO STRETCH OUT BACK TAXES OWED TO THE INTERNAL REVENUE SERVICE WILLIAM LYON A FRIEND AND ADVISER OF THE KINNEES AND A RETIRED GENERAL MOTORS EXECUTIVE SAYS THAT PART OF THE PROBLEM WAS THAT ALTHOUGH MS KINNEE HAS A FABULOUS PRODUCT SHE WAS NAIVE ABOUT BUSINESS SHE ALSO RECEIVED BAD ADVICE MR LYON SAYS SHE WAS PRICING THE CAKES SO LOW THAT SHE WAS GIVING THEM AWAY HE ADDS ON HIS ADVICE THE CAKES HAVE NOW BEEN PRICED COMPETITIVELY AND OTHER CHANGES WERE MADE TO MAKE THE BUSINESS HEALTHIER THE KINNEES' HOPE IS TO FIND A BAKER WHOSE PLANT ISN'T USED AT FULL CAPACITY AND WHO CAN PREPARE MS KINNEE'S CAKES TO HER SPECIFICATIONS FREEING HER OF RESPONSIBILITY FOR PAYING OVERHEAD AND OTHER EXPENSES THAT WOULD LEAVE HER TO DO WHAT SHE DOES BEST PROMOTE HER CAKES SHE SAYS SHE HAS TALKED TO SEVERAL MAJOR OUTLETS THAT HAVE EXPRESSED INTEREST IN SELLING THE CAKES HOW DO I STAY AFLOAT ASKS MS KINNEE WHO IS ON THE BOARD OF THE FLINT CHAMBER OF COMMERCE I DON'T KNOW HOW TO QUIT AND YOU KNOW YOU CAN MAKE IT YOU CAN HAVE A PIECE OF THE AMERICAN DREAM BUT IT COMES WITH WORK WITH PERSEVERANCE WITH A TAD OF LUCK AND A STRONG COMMITMENT TO WHAT YOU'RE DOING DARRYL ROBINSON FOUNDED ROBOTICA AUTOMATION CONSULTANTS INC IN 1987 WITH 1000 IN SAVINGS AND SEVEN BANK CREDIT CARDS THE CREDIT CARDS ENABLED ROBOTICA A BOSTON COMPUTERCONSULTING COMPANY TO GET THROUGH ITS INITIAL LOSSES BUT WHEN THE COMPANY WAS TWO YEARS OLD AND PROFITABLE MR ROBINSON A MECHANICALENGINEERING GRADUATE OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY TURNED TO A BANK TO HELP FINANCE NEW EQUIPMENT AND OPERATING CAPITAL HE WAS REJECTED THEY SAID THIS IS GOOD YOU LOOK GREAT BUT YOUR COMPANY DOESN'T HAVE ANY FINANCIAL HISTORY SAYS MR ROBINSON NOW 28 YEARS OLD YOU HAVEN'T WEATHERED AN ECONOMIC DOWNTURN HE SAYS HE REALIZED THAT HE WOULD HAVE TO SHOW THE BANK SOME STRONG FINANCIAL HISTORY AND AT A TIME WHEN THE MASSACHUSETTS MIRACLE' WASN'T ON AND A LOT OF BUSINESSES HAD FAILED AND WE WERE STILL HERE SO HIS CREDIT CARDS CONTINUED TO BE HIS LIFEBLOOD I DIDN'T DO CASH ADVANCES I WOULD DRAW ON THE VARIOUS CREDIT LINES AS I NEEDED THEM MR ROBINSON SAYS THEY AUGMENTED OUR WORKING CAPITAL IT'S THE WAY A LOT OF PEOPLE HAVE TO START ON AVERAGE MR ROBINSON SAYS HIS OUTSTANDING BALANCES ON THE CARDS TOTALED AT MOST ABOUT 15000 AT ANY ONE TIME HE SAVED MONEY BY HIRING SUBCONTRACTORS INSTEAD OF EMPLOYEES TO WHOM HE WOULD HAVE TO PAY BENEFITS THIS WAS A SMART GUY SAYS GAIL SNOWDEN DIVISION EXECUTIVE WITH FIRST COMMUNITY BANK A BRANCH OF THE BANK OF BOSTON THAT DOES URBAN LENDING HE HAD A GOOD BUSINESS AND HE GREW IT TO A POSITION WHERE HE COULD BRING SOME OF THE PIECES BEFORE A BANK BECAUSE WE SAW WHAT HE HAD DONE HE HAD A GOOD BUSINESS PLAN AN ESTABLISHED TRACK RECORD CUSTOMERS WHO WOULD SPEAK ON HIS BEHALF HE HAD ENOUGH BUT FOR MR ROBINSON THE BANK DIDN'T HAVE WHAT IT TAKES HE DECLINED THEIR LOAN BECAUSE HE FELT IT CONTAINED TOO MANY RESTRICTIONS HE HOPES TO GET A BETTER DEAL FROM ANOTHER BANK IN THE MEANTIME THOUGH HE WILL CONTINUE TO USE HIS CREDIT CARDS IT'S A SHAME WE HAVE TO DO THAT BUT IT SHOWS BLACK BUSINESSES WILL SURVIVE HE SAYS WE WILL FIND A HOOK AND A CROOK BUT IT'S TIME THAT MORE OF US GET THE FINANCIAL BACKING THAT WE DESERVE SHERRIE MAURER OF SHARON VT KNEW SHE HAD CREATED A SPECIAL KETCHUP EVERYONE WHO TRIED IT RAVED ABOUT THE RICH DARK RED CONDIMENT BUT SHE COULDN'T PERSUADE BANKS OR THE LOCAL SMALL BUSINESS ADMINISTRATION OFFICE TO LEND HER MONEY SHE HAD BEEN A POTTER AND HAD SOLD HER ART AT CRAFT SHOWS BUT SHE HADN'T RUN A BUSINESS NEVERTHELESS MS MAURER NOW 58 SAYS I DID MY HOMEWORK AFTER APPLYING FOR AN SBA LOAN THROUGH RANDOLPH NATIONAL BANK IN RANDOLPH MAINE SHE SAYS THAT SHE WENT TO SBA SEMINARS ON MARKETING AND DID EVERYTHING THAT WAS REQUIRED TO DO FOR THE APPLICATION BUT IN 1983 THE SBA WHICH WOULD HAVE UNDERWRITTEN THE BANK LOAN TURNED HER DOWN SHE SAYS THAT AN SBA MARKETING ANALYST SAID MY PRODUCT WOULDN'T STACK UP AGAINST HEINZ THAT PEOPLE WOULDN'T BUY A KETCHUP THAT WASN'T AS BRIGHT RED AS HEINZ AND WOULD COST MORE THAN HEINZ THE SBA'S DEPUTY DISTRICT DIRECTOR IN THE AREA SAYS HE DOESN'T RECALL THE SPECIFICS OF MS MAURER'S CASE BUT A LENDING OFFICER AT RANDOLPH DENNIS HILL WHO HAS SINCE RETIRED FROM THE BANK WAS SO IMPRESSED WITH HER DETERMINATION AS WELL AS THE FACT THAT HER FAMILY HAD LENT HER 5000 THAT HE APPROVED A LOAN OF 1500 IN 1983 HE FIGURED IT WOULD BE ENOUGH TO HELP HER BUT NOT ENOUGH FOR HER TO GET OVER HER HEAD IN DEBT MR HILL'S ACT OF FAITH WAS AMONG THE FIRST OF MANY THAT WOULD HELP MS MAURER BUILD HER BUSINESS JASMINE & BREAD INC NOW NINE YEARS OLD THE COMPANY IS THRIVING IN 1991 LAST YEAR'S FIGURES AREN'T YET IN THE COMPANY'S SALES TOTALED 268000 MS MAURER SAYS THE COMPANY IS PROFITABLE ALTHOUGH SHE DECLINES TO BE MORE SPECIFIC BUT BACK IN THE MID1980S MS MAURER DIDN'T HAVE ANY MONEY TO PAY FOR HELP SO SHE COOKED UP SOME MONEY SHE BARTERED HER KETCHUP FOR PROFESSIONAL SERVICES LEGAL ACCOUNTING AND ADVERTISING JONATHAN BROWNELL A LAWYER WHO SPECIALIZES IN STARTUPS HELPED HER STRUCTURE A PAYBACK AGREEMENT WITH FAMILY MEMBERS AND HE RECALLS WE TALKED ABOUT HOW TO GET OFF HER KITCHEN STOVE AND INTO SOMETHING THAT HAS A HIGHER VOLUME SUCH AS THE CANNING COOPERATIVE THAT SHE EVENTUALLY USED MR BROWNELL ALSO PUT HER IN TOUCH WITH THE VERMONT AGRICULTURE DEPARTMENT WHICH HELPED PROMOTE HER SAUCES AS PART OF A STATE PROGRAM TO PUSH MADEINVERMONT PRODUCTS MR BROWNELL'S PAYMENT HE SAYS WAS BITS AND PIECES OF WHAT SHERRIE COOKED UP ON HER STOVE THE JAMS KETCHUP JELLIES AND RELISHES HIS FAVORITE IS CALLED BEYOND KETCHUP MADE FROM TOMATOES AND APPLES DAVID AND CHARLOTTE CLEVELAND VOLUNTEERED TO DON HIGH BOOTS TO HELP MS MAURER SCRUB OUT THE HUGE CAULDRONS BEFORE SHE CANNED HER FIRST KETCHUP AT THE CANNING COOPERATIVE MR CLEVELAND WHO WORKS FOR AN ADVERTISING AGENCY ALSO HELPED HER BUILD HER CUSTOMER BASE THROUGH DIRECTRESPONSE ADVERTISING AND DIRECT MAIL SHE HAS A LOYAL FOLLOWING MR CLEVELAND SAYS THE CLEVELANDS' PAYMENT IS A NEVERENDING SUPPLY OF MS MAURER'S PRODUCTS WHICH INCLUDE BEYOND BELIEF SALSA BEYOND HORSERADISH MUSTARD AND SWEET LIGHTNING HORSERADISH JELLY WHEN PEOPLE SAY IF THERE'S ANYTHING I CAN DO LET ME KNOW' ASK THEM WHAT THEY CAN DO MS MAURER ADVISES AND TRY TO INVOLVE THEM IN A WAY THAT THEY FEEL GOOD ABOUT HELPING YOU MS GAITER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190185 930219 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 277021 METRIC TONS IN THE WEEK ENDED SATURDAY A 63 INCREASE FROM 260617 TONS THE PREVIOUS WEEK BUT A 1 DECLINE FROM 279824 A YEAR AGO STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 1665407 TONS A 48 INCREASE FROM 1589144 TONS A YEAR EARLIER 9302190184 930219 WHO'S NEWS MEDICAL ACTION INDUSTRIES INC MEDICAL ACTION INDUSTRIES INC HAUPPAUGE NY PAUL SNEAD WAS APPOINTED TREASURER AND PRINCIPAL ACCOUNTING OFFICER AND RICHARD G SATIN AND GROVER A COX WERE NAMED DIRECTORS INCREASING THE BOARD'S SIZE TO SEVEN MR SNEAD 27 YEARS OLD SUCCEEDS PAUL V ROSSI WHO LEFT THE SUPPLIER OF MEDICAL PRODUCTS TO PURSUE OTHER OPPORTUNITIES MR SNEAD HAD BEEN AN AUDIT MANAGER WITH ERNST & YOUNG MR SATIN 37 WAS RECENTLY NAMED VICE PRESIDENT AND GENERAL COUNSEL AT THE COMPANY MR COX 60 HAS BEEN VICE PRESIDENT SALES AND MARKETING SINCE FEBRUARY 1992 9302190183 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP A NEW TUNE BLACK MUSIC PRODUCERS GAIN PROMINENCE AND POWER BY TIMOTHY L O'BRIEN BLACK MUSIC PRODUCERS ARE ON A ROLL FROM HIP HOP AND RAP TO RHYTHM AND BLUES THEIR INFLUENCE HAS TRANSFORMED AMERICAN POPULAR CULTURE IN RECENT YEARS AND OPENED UP NEW OPPORTUNITIES FOR THEM IN THE MOVIE AND TELEVISION INDUSTRIES THEIR ACHIEVEMENTS HAVE ENABLED MANY BLACK PRODUCERS TO LAUNCH THEIR OWN LABELS AND TO BECOME SOME OF THE MOST VISIBLE AND POWERFUL BLACK ENTREPRENEURS IN THE US TODAY I THINK THIS IS ONE OF THE HOTTEST TIMES EVER FOR BLACK PRODUCERS AND I ALSO THINK THERE'S MORE BUSINESS ACUMEN BEHIND THEIR DECISIONS SAYS QUINCY JONES WHO IS BEST KNOWN PERHAPS FOR PRODUCING MICHAEL JACKSON'S THRILLER ALBUM THE PRODUCERS HAVE BECOME AS IMPORTANT AN INGREDIENT IN MUSICMAKING AS THE ARTISTS BUT PROBLEMS PERSIST SOME BLACK MUSIC PRODUCERS WHO HAVE FORGED ALLIANCES WITH BIG WHITERUN CORPORATIONS SUSPECT THAT THE COLOR OF THEIR SKIN IS STILL HOLDING THEM BACK OTHERS WORRY THAT THE PRESSURE TO PRODUCE HITS FOR MAINSTREAM TASTES MIGHT BE PUTTING A DAMPER ON THEIR ARTISTIC CREATIVITY AND BLACK WOMEN COMPLAIN THAT THE DOOR TO THE PRODUCTION ROOM HAS A MEN ONLY SIGN ON IT STILL FOR THE MOST PART BLACK PRODUCERS ARE WIELDING UNPRECEDENTED CONTROL IN THE MUSIC INDUSTRY ONE OF THE MOST SUCCESSFUL BLACK PRODUCTION TEAMS IS THE DUO OF ANTONIO LA REID AND KENNETH BABYFACE EDMONDS THEIR COMPANY LAFACE RECORDS PRODUCES SONGS BY SUCH ARTISTS AS BOBBY BROWN AND WHITNEY HOUSTON LAFACE ALSO PRODUCED THE SOUNDTRACK FOR THE FILM BOOMERANG ONE OF THE TOPSELLING RECORDINGS OF 1992 A SONG FROM THAT SOUNDTRACK END OF THE ROAD WAS AT THE TOP OF BILLBOARD'S LIST OF TOP RHYTHM AND BLUES SINGLES LONGER THAN ANY OTHER SINGLE OF THE ROCK ERA ACCORDING TO THE MAGAZINE'S RESEARCH DEPARTMENT LAFACE BASED IN ATLANTA WAS LAUNCHED THREE YEARS AGO AS A JOINT VENTURE WITH ARISTA RECORDS A SUBSIDIARY OF BERTELSMANN MUSIC GROUP INC MESSRS REID AND EDMONDS 36 AND 34 YEARS OLD RESPECTIVELY DECLINE TO DISCLOSE THEIR COMPANY'S FINANCES ALTHOUGH THEIR LABEL GOT OFF TO A SLOW START IT IS NOW CHURNING OUT HITS I DON'T THINK WE TOOK THE DEAL WITH ARISTA SO THAT WE COULD PROVE SOMETHING IN 12 MONTHS SAYS MR REID WE TOOK OUR TIME ABOUT BUILDING A COMPANY AND FINDING QUALITY ARTISTS THE TWO MEN SAY THAT THEY CHOSE ARISTA BECAUSE OF THE EXPERTISE OF ITS LONGTIME PRESIDENT AND CHIEF EXECUTIVE OFFICER CLIVE DAVIS AND MR DAVIS SAYS THE JOINT VENTURE HELPS KEEP ARISTA UP TO DATE TO BE CURRENT AND CONTEMPORARY YOU MUST DEAL WITH PRODUCERS WHO BY COMBINING THEIR WRITING ARRANGING AND PRODUCING TALENTS ARE CREATIVE PHENOMENA UNTO THEMSELVES HE SAYS WHILE MESSRS REID AND EDMONDS BUILT THEIR COMPANY SLOWLY OTHER PRODUCERS HAVE MADE THE MISTAKE OF TRYING TO EXPAND TOO QUICKLY BUST IT RECORDS STARTED FIVE YEARS AGO IN OAKLAND BY RAP STAR HAMMER HAS RUN INTO A RECENT SPATE OF MANAGERIAL PROBLEMS THAT FORCED IT TO SCALE BACK ITS OPERATIONS BUST IT HAS EXPERIENCED THE GROWING PAINS THAT A NEW LABEL ALWAYS ENCOUNTERS SAYS LOUIS BURRELL THE COMPANY'S SENIOR EXECUTIVE AND HAMMER'S BROTHER SOMETIMES YOU'RE SO EAGER TO DO THINGS THAT YOU TRY TO DO TOO MUCH ALTHOUGH THERE IS UNPRECEDENTED CORPORATE BACKING FOR BLACK PRODUCERS MR BURRELL SAYS THAT CAPITOL RECORDS INC BUST IT'S PARTNER GIVES HIS COMPANY LESS FINANCIAL SUPPORT THAN IT GIVES ITS WHITEOWNED LABELS CAPITOL DISAGREES WE TOTALLY LIVED UP TO OUR PART OF THE DEAL SAYS BOB BERNSTEIN A CAPITOL SPOKESMAN HOW THE MONEY WAS SPENT WAS UP TO BUST IT BUT MR BURRELL'S COMPLAINT IS ECHOED BY OTHER BLACK PRODUCERS ABOUT OTHER RECORD COMPANIES TEDDY RILEY THE 26YEAROLD OWNER OF NEW JACK SWING PRODUCTIONS INC HAS PRODUCED HITS FOR MICHAEL JACKSON AND WRECKXNEFFECT ALTHOUGH HE RECEIVED ABOUT 45 MILLION FOR A JOINT VENTURE WITH MCA INC HE IS ONE OF THE INDUSTRY'S MORE VOCAL CRITICS I WAS PAID PENNIES COMPARED TO WHAT OTHER WHITE PRODUCERS GET SAYS MR RILEY IF I HAD THE CHANCE I WOULD BUY MYSELF OUT OF THE DEAL WITH MCA RICHARD PALMESI MCA'S PRESIDENT SAYS MR RILEY'S FINANCING IS EQUAL TO THAT GIVEN THE COMPANY'S WHITE PRODUCERS SOME SAY THAT FOCUSING ON FINANCING MISSES THE POINT IN THE LONG RUN WHAT YOU GET AT THE END OF THE DAY FOR ROYALTY RATES IS WHAT'S RELEVANT SAYS BILL STEPHNEY A BLACK PRODUCER WHO HELPED LAUNCH THE RAP GROUP PUBLIC ENEMY AND I THINK THERE'S PROBABLY MORE PARITY BETWEEN WHITES AND BLACKS IN TERMS OF ROYALTY RATES MR STEPHNEY ADDS THAT BLACK PRODUCERS TODAY HAVE MUCH MORE CONTROL OVER THEIR MUSIC AND ENTERPRISES THAN EVER BEFORE BUT THE PRICE OF INCREASED CORPORATE BACKING HE SAYS HAS BEEN A HOMOGENIZATION OF THE MUSICAL PRODUCT RUSSELL SIMMONS OWNER OF DEF JAM RECORDINGS AGREES THE NEW COMPANIES ARE PRODUCTIONDRIVEN AND AREN'T EQUIPPED TO DEVELOPING ARTISTS HE SAYS IT'S A BAD TREND NOT ALL BLACK PRODUCERS HAVE RELIED ON CORPORATE FUNDS TEN YEARS AGO JIMMY JAM AND TERRY LEWIS FOUNDED FLYTE TIME PRODUCTIONS A MINNEAPOLIS CONCERN WITH MONEY THAT THEY EARNED FROM A FEW HIT RECORDS AFTER OBTAINING A 250000 BANK LOAN AND EXPANDING THEIR STUDIOS THEY WENT ON TO PRODUCE HITS FOR JANET JACKSON AND OTHERS IN 1991 FLYTE TIME ENTERED INTO A DISTRIBUTION ARRANGEMENT WITH A&M RECORDS INC AND STARTED A NEW LABEL CALLED PERSPECTIVE THEY RETAIN ALL OF THE RIGHTS TO THEIR SONGS IT'S GETTING BETTER BECAUSE WE'RE GETTING A CHANCE TO OWN WHAT WE PRODUCE NOW SAYS MR JAM THAT'S THE WAY DEALS WERE ALWAYS DONE WITH WHITE RECORD EXECUTIVES BUT NEVER WITH BLACK RECORD EXECUTIVES MANY BLACK PRODUCERS HAVE FOUND SUCCESS BY CIRCUMVENTING TRADITIONAL INDUSTRY HIERARCHIES IN LOS ANGELES AND NEW YORK BY ESTABLISHING INDEPENDENT STUDIOS IN SUCH CITIES AS MINNEAPOLIS ATLANTA AND CLEVELAND THEY HAVE MADE THOSE CITIES FERTILE GROUND FOR NEW MUSIC BUT EVEN THE NEW STUDIOS ARE JUST FOR THE BOYS THOSE FAMILIAR WITH THE INDUSTRY SAY THAT FEMALE PRODUCERS ARE CUT OFF FROM THE NETWORK OF INDUSTRY CONTACTS DOMINATED BY BLACK MALES THEY CONSEQUENTLY DON'T HAVE THE CHANCE TO DEVELOP MENTORS OR TAKE ADVANTAGE OF NEW PROFESSIONAL OPPORTUNITIES MOST WOMEN AREN'T ENCOURAGED TO BECOME PRODUCERS OR MANAGERS THEY'RE ENCOURAGED TO BECOME ARTISTS OR PERFORMERS SAYS LA LA COPE WHO HAS WRITTEN SONGS FOR WHITNEY HOUSTON AND IS ATTEMPTING TO BREAK INTO PRODUCTION WHEN I'VE TRIED TO DO OTHER THINGS I WAS TOLD TO JUST LOOK GOOD AND SING IN SPITE OF SUCH PROBLEMS BLACK PRODUCERS ARE BASKING IN THEIR SUCCESS NO ONE CARED ABOUT PRODUCERS 10 YEARS AGO BUT IT'S A PRODUCER'S BUSINESS NOW SAYS GERALD LEVERT THE 26YEAROLD OWNER OF CLEVELANDBASED TREVEL PRODUCTIONS ARTISTS COME AND GO BUT IF YOU HAVE A CERTAIN SOUND THE RECORD COMPANIES WILL KEEP COMING BACK TO YOU MR O'BRIEN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190182 930219 TOYOTA NISSAN POST DROP IN SALES OUTPUT IN JAPAN SPECIAL TO THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP AND NISSAN MOTOR CO JAPAN'S TWO LARGEST AUTO MAKERS SAID THEIR DOMESTIC PRODUCTION AND SALES SLID DURING JANUARY FROM A YEAR AGO AMID CONTINUED WEAKNESS IN THE DOMESTIC AUTO MARKET TOYOTA SAID ITS DOMESTIC OUTPUT OF VEHICLES FELL FOR A THIRD CONSECUTIVE MONTH THIS TIME BY 11 WHILE NISSAN POSTED A 23 DROP TO MARK A SIXTH MONTH OF DECLINE EXPORTS FROM TOYOTA WERE UP 32 WITH BOTH CARS AND COMMERCIAL VEHICLES POSTING RISES BUT NISSAN EXPORTS PLUMMETED 24 AS BOTH SECTORS RETREATED THE TOYOTA GAIN IN OVERSEAS SHIPMENTS WAS THE FIRST IN THREE MONTHS TOYOTA SAID ITS EXPORTS WERE UP ON INCREASING DEMAND FOR VEHICLES IN SOUTHEAST ASIA AND EUROPE DOMESTICALLY SALES WERE OFF 95 AT TOYOTA AND 14 AT NISSAN TOYOTA MANUFACTURED 277020 VEHICLES IN JAPAN OF WHICH 222330 WERE CARS AND 54690 WERE TRUCKS AND BUSES ITS OUTPUT OF CARS WAS DOWN 97 WHILE THAT OF THE COMMERCIAL VEHICLES WAS OFF 16 NISSAN PRODUCED 140726 VEHICLES LOCALLY WITH 115144 CARS AND 25582 COMMERCIAL VEHICLES THE SECONDRANKED AUTO MAKER'S MANUFACTURE OF CARS WAS 24 LOWER AND THAT OF TRUCKS AND BUSES WAS DOWN 16 TOYOTA RECOVERED 06 PERCENTAGE POINT OF JAPANESE MARKET SHARE TO 33 WHILE NISSAN LOST A HALF PERCENTAGE POINT TO 22 ALL COMPARISONS ARE WITH YEAREARLIER LEVELS UNLESS OTHERWISE NOTED BOTH AUTO MAKERS CONTINUED TO LOG INCREASES IN OVERSEAS PRODUCTION WITH NISSAN'S UP A STRONG 25 TO 81224 UNITS NISSAN ATTRIBUTED THE ADVANCE TO ROBUST INTEREST IN ITS ALTIMA NAMEPLATE IN THE US AND INCREASED PRODUCTION OF MICRAMODEL VEHICLES IN THE UK IT ALSO NOTED A RISE IN OUTPUT AT ITS NISSAN MEXICANA SA UNIT OVERSEAS PRODUCTION FOR TOYOTA WAS UP 06 TO 61764 VEHICLES BREAKING DOWN DOMESTIC SALES TOYOTA'S REGISTRATIONS OF PASSENGER CARS DROPPED 13 TO 87507 IN JANUARY WHILE THOSE FOR TRUCKS AND BUSES WERE UP 11 TO 34614 DOMESTIC SALES OF NISSAN CARS SLIPPED 58 TO 45792 AND COMMERCIALVEHICLE SALES PLUNGED 32 TO 15466 TOYOTA EXPORTED 127858 CARS AND 33914 COMMERCIAL VEHICLES THOSE FIGURES ARE UP 33 AND 28 RESPECTIVELY NISSAN'S EXPORTS OF PASSENGER CARS ON THE OTHER HAND WERE DOWN 25 TO 48930 AND ITS SHIPMENTS OF TRUCKS AND BUSES WERE OFF 22 TO 9374 9302190181 930219 CANADIAN TRADE SURPLUS OTTAWA CANADA'S TRADE SURPLUS WIDENED TO 949 BILLION CANADIAN DOLLARS US751 BILLION IN 1992 MAINLY AS A RESULT OF A 14 RISE IN EXPORTS TO THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE 1991 TRADE SURPLUS TOTALED C578 BILLION EXPORTS IN 1992 ROSE 11 TO C15755 BILLION AND IMPORTS ROSE 89 TO C14806 BILLION THE US TOOK 776 OF CANADA'S EXPORTS AND SUPPLIED 707 OF CANADA'S IMPORTS 9302190180 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CASH CRUNCH OBSTACLE COURSE REALESTATE DEVELOPER OTIS WARREN HAD GRAND PLANS TO CONSTRUCT A NEW OFFICE BUILDING THEN HE TRIED TO BORROW THE MONEY BY JEANNE SADDLER BALTIMORE OTIS WARREN FINALLY HIT PAY DIRT LAST SPRING AFTER SEARCHING FOR ALMOST TWO YEARS THE DEVELOPER LANDED THE 38 MILLION OF FINANCING HE NEEDED TO BUILD CITY CRESCENT HIS DOWNTOWN COMPLEX OF OFFICES APARTMENTS AND RETAIL SHOPS HERE FINDING THE MONEY SHOULD HAVE BEEN EASIER MR WARREN'S COMPANY HAD BEEN AWARDED THE DEVELOPMENT CONTRACT BY THE US GENERAL SERVICES ADMINISTRATION AS ANCHOR TENANT THE GSA ALSO HAD AGREED TO LEASE 95 OF THE SPACE FOR 10 YEARS BUT INSTEAD OF FINDING EAGER BACKERS MR WARREN WAS REJECTED BY MORE THAN 100 LENDERS DURING A RECESSION BANKS GENERALLY SHUN REALESTATE PROJECTS AND SMALL COMPANIES IN ADDITION FALLOUT FROM THE NATIONAL SAVINGSANDLOAN DEBACLE CERTAINLY DIDN'T HELP PROSPECTIVE BORROWERS THUS ON ONE LEVEL MR WARREN'S STRUGGLE ILLUSTRATES THE KINDS OF OBSTACLES FACING MOST ENTREPRENEURS WHEN THEY HAVE TO RAISE LARGE AMOUNTS OF CAPITAL BUT MANY OF THE PROBLEMS THAT BURDENED MR WARREN SUCH AS THE LACK OF A TRACK RECORD TO MATCH THE SCOPE OF HIS NEW PROJECT CAN BE PARTICULARLY ONEROUS FOR BLACK BUSINESS OWNERS AND ON TOP OF THIS MR WARREN SUSPECTS ALTHOUGH HE CAN'T PROVE IT THAT RACISM AS WELL STYMIED HIS EFFORT TO BECOME THE FIRST BLACK IN HIS HOMETOWN TO DEVELOP A MAJOR DOWNTOWN PROPERTY I DID THIS PROJECT IN SPITE OF RACISM THE 50YEAROLD DEVELOPER SAYS TO HAVE CONFIDENCE IN THE SYSTEM YOU HAVE TO PROVE RACISM CAN'T STOP YOU BUT WHATEVER THE LENDERS' REASONS WERE FOR NOT FINANCING MY PROJECT WHAT REALLY EXCITES ME IS TO PROVE THEY WERE WRONG LAST SPRING MR WARREN FINALLY ARRANGED PERMANENT FINANCING THROUGH THE SALE OF TAXABLE BONDS CITY CRESCENT WILL OCCUPY 300000 SQUARE FEET IN BALTIMORE'S MARKET CENTER AREA NOT FAR FROM THE CENTRAL BUSINESS DISTRICT THE OFFICE BUILDING NOW IS ABOUT 95 COMPLETE AND FULLY LEASED IT WILL PROVIDE LOCAL OFFICE SPACE FOR THE GSA AND SEVERAL OTHER FEDERAL AGENCIES AT 23 A SQUARE FOOT GENERATING ANNUAL REVENUE OF ABOUT 6 MILLION THE COMPLEX ALSO WILL INCLUDE 225 APARTMENT UNITS RETAIL SHOPS AND A PARKING GARAGE FOR THE BLACK DEVELOPER THE PROJECT HAS BEEN A MIXTURE OF PAIN AND PRIDE IN AUGUST 1991 HE WAS RUSHED TO THE HOSPITAL WITH CHEST PAINS CONVINCED THAT THE DEAL'S PRESSURES HAD BROUGHT ON A HEART ATTACK HIS DOCTORS ATTRIBUTED THE PROBLEMS TO STRESS BUT MR WARREN SAYS HIS CHEST PAINS PERSISTED UNTIL LAST SUMMER THEN THERE WAS THE ULTIMATUM FROM THE GSA IN NOVEMBER 1991 THAT NEARLY COST HIM THE JOB AFTER SEVERAL DELAYS THAT WERE BEYOND MR WARREN'S CONTROL GSA OFFICIALS HAD WARNED HIM THAT THEY WOULD HAVE TO AWARD THE WORK TO ANOTHER COMPANY IF HE COULDN'T PROVE HE WOULD START CONSTRUCTION PROMPTLY DETERMINED TO COMPLY HE BOUGHT OUT HIS TWO ORIGINAL PARTNERS ONE OF WHOM WAS BLACK AND REPLACED THEM WITH EVANS CO OF MCLEAN VA A LARGER WHITEOWNED COMMERCIAL DEVELOPMENT COMPANY WITH CONSIDERABLE EXPERIENCE AS A GOVERNMENT CONTRACTOR AS THE DEADLINE LOOMED MR WARREN AND HIS EVANS PARTNERS SCRAMBLED TO GET TO THE GSA'S REGIONAL OFFICE IN PHILADELPHIA A SYMPATHETIC GSA PROJECT OFFICER WAITED FOR THEM UNTIL LATE THAT NIGHT AND THEY WON HIS BLESSING JUST IN TIME THIS DEAL WAS CONSIDERED DEAD ON THREE OR FOUR OCCASIONS MR WARREN RECOLLECTS BUT I HELD ON TO THE NOTION THAT THIS WOULD BE A MINORITYOWNED AND MINORITYOPERATED PROJECT THAT WAS THE GOAL AND PURPOSE TO ME WHEN EVANS CAME ON BOARD MR WARREN RETAINED A 60 STAKE IN THE PROJECT LENDERS WHO REJECTED MR WARREN'S FINANCING PROPOSAL DENY THAT RACE WAS A FACTOR BUT HE SUSPECTS THAT THEIR UNEASINESS WITH A BLACK DEVELOPER ADDED TO THE TROUBLES CAUSED BY THE SLUGGISH ECONOMY AT ONE POINT HE EXPLAINS A FINANCING COMMITMENT FROM A GROUP OF PRIVATE INVESTORS EVAPORATED EVEN THOUGH THE CITY OF BALTIMORE HAD AGREED TO LEASE THE BUILDING FOR 15 YEARS IF THE FEDERAL GOVERNMENT DIDN'T RENEW ITS 10YEAR LEASE THE COLLAPSE OF THE PRIVATE GROUP SUGGESTS THAT THE 10YEAR LEASE WASN'T THE DEVELOPER'S ONLY PROBLEM AGREES ANTHONY ROBINSON PRESIDENT OF THE MINORITY BUSINESS ENTERPRISE LEGAL DEFENSE FUND AN ADVOCACY GROUP IN WASHINGTON DC EVEN WHEN THE CITY OF BALTIMORE CAME IN YOU DIDN'T HAVE INSTITUTIONS EXACTLY STUMBLING OVER THEMSELVES TO FINANCE THE PROJECT MR ROBINSON SAYS IN MANY SITUATIONS MR ROBINSON ADDS BLACKS IN PARTICULAR HAVE INORDINATE DIFFICULTY GETTING FINANCING CONDITIONS WERE EVEN WORSE DURING THE PAST RECESSION THE FACTORING AND CONTRACT FINANCING INDUSTRY IS DOING A TREMENDOUS AMOUNT OF BUSINESS WITH MINORITIES HE SAYS I BELIEVE IT'S BECAUSE FINANCIAL INSTITUTIONS HAVE CLOSED THEIR DOORS FOR MR WARREN THE LACK OF PRIOR EXPERIENCE WITH BIG COMMERCIAL PROJECTS MAY HAVE BEEN A MAJOR IMPEDIMENT EVEN SO HE WAS ABLE TO DEMONSTRATE A SUBSTANTIAL RECORD OF SUCCESSFUL DEVELOPMENTS SO HE DIDN'T THINK LENDERS SHOULD FAULT HIS OVERALL EXPERIENCE FOR EXAMPLE HE HAD BUILT MORE THAN 300 APARTMENTS AND TOWN HOUSES IN THE BALTIMORE AREA INCLUDING AN 11 MILLION HOUSING DEVELOPMENT ON 18 WOODED ACRES WITH AN ONSITE SWIMMING POOL AND DAYCARE CENTER HE ALSO HAD REHABILITATED OLDER HOMES AND HAD MANAGED SEVERAL MAJOR RESIDENTIAL AND COMMERCIAL PROPERTIES THOSE ACHIEVEMENTS HELPED HIM WIN ELECTION AS THE FIRST BLACK PRESIDENT OF A LOCAL REALTORS' BOARD AND RECOGNITION AS ONE OF THE OUTSTANDING COMMITTEE CHAIRMEN OF THE NATIONAL ASSOCIATION OF REALTORS IN 1991 THE PROTRACTED SEARCH FOR FINANCING BEGAN IN AUGUST 1990 WHEN HIS OTIS WARREN COS WON THE GSA DEVELOPMENT CONTRACT IN OPEN COMPETITION AGAINST NINE OTHER BIDDERS INCLUDING SUCH DISTINGUISHED RIVALS AS ROUSE CO WHICH PLACED SECOND SOME UNSUCCESSFUL BIDDERS EMBITTERED BY THE OUTCOME CHALLENGED THE GSA AWARD IN COURT EARLY IN HIS MONEY SEARCH MR WARREN FOUND A WILLING LENDER BALTIMOREBASED USF&G CORP BUT THE DEAL SOON FELL THROUGH FOLLOWING THE RESIGNATION OF THE GIANT INSURANCE COMPANY'S CHAIRMAN WHO HAD BACKED THE PROJECT USF&G SAYS ITS NEW CHAIRMAN DECIDED TO REDUCE ITS EXPOSURE IN VOLATILE SECTORS SUCH AS REAL ESTATE AND TO ELIMINATE MOST INVESTMENTS NOT RELATED TO ITS MAIN BUSINESS OF INSURANCE USF&G'S WITHDRAWAL FROM CITY CRESCENT HAD NOTHING TO DO WITH THE PROJECT ITSELF A COMPANY SPOKESMAN SAYS MR WARREN'S MORTGAGE BROKER JAMES REID SPENT MUCH OF THE NEXT YEAR SEARCHING FOR OTHER BACKERS MR REID SAYS HE UNSUCCESSFULLY SOUGHT FINANCING FROM MORE THAN 100 BANKS INSURANCE COMPANIES PENSION FUNDS FOREIGN INSTITUTIONS AND PRIVATE INVESTORS THE BROKER SUGGESTS THAT GENERAL DOUBTS ABOUT THE SOUR ECONOMY RATHER THAN RACIAL BIAS SEEMED TO BE THE MAJOR REASON WHY SO MANY LENDERS REFUSED TO BACK MR WARREN'S PROJECT IF THIS HAD BEEN PRESENTED A YEAR EARLIER THERE WOULD HAVE BEEN NO PROBLEM MR REID SPECULATES BUT HE WAS ON THE FRONT END OF THE DETERIORATION OF CONFIDENCE IN REAL ESTATE SO MUCH OF THIS IS TIMING ACCORDING TO MR REID LENDERS ALSO WERE CONCERNED THAT THE FEDERAL GOVERNMENT HAD GUARANTEED TO LEASE THE PROPERTY FOR ONLY 10 YEARS RATHER THAN PROVIDING THE GREATER SECURITY OF A 20YEAR LEASE THE GSA LEASE WILL COVER 95 OF THE CITY CRESCENT OFFICECOMPLEX SPACE SAYS STEVEN PETERS THE FEDERAL CONTRACTING OFFICER INVOLVED IN THE PROJECT ACCORDING TO THE GSA THE LEASE WAS THE LARGEST EVER AWARDED BY THE AGENCY TO A MINORITY CONTRACTOR FOR A NEW BUILDING IT'S VERY UNUSUAL TO HAVE THAT MUCH SPACE PRELEASED MR PETERS SAYS THIS WAS THE FIRST TIME WHERE WE HAD A GUARANTEED TERM LIKE THAT WHERE WE EXPERIENCED THIS MUCH DIFFICULTY HAVING IT FINANCED BUT OVER THE PAST TWO YEARS MR PETERS ADDS SEVERAL OTHER DEVELOPERS HAVE HAD TROUBLE GETTING FINANCING ON PROJECTS THAT INVOLVED ONLY THE AGENCY'S STANDARD 10YEAR LEASE AS A RESULT HE SAYS THE GSA NOW WILL AT LEAST CONSIDER OFFERING LONGERTERM COMMITMENTS THOUGH THE 10YEAR LEASE REMAINS THE NORM AS MR WARREN'S MONEY HUNT DRAGGED ON HE FEARED THAT THE GSA MIGHT VOID HIS COMPANY'S CONTRACT IN THE SUMMER OF 1991 THE BANK OF BALTIMORE AGREED TO PUT UP 10 MILLION TOWARD THE PROJECTABOUT A FOURTH OF THE TOTAL CAPITAL NEEDED THE DEAL COLLAPSED THAT FALL A SPOKESMAN EXPLAINS THAT THE BANK HAD AN ENORMOUS AMOUNT OF DIFFICULTY GETTING ANY OTHER LENDER TO PARTICIPATE IN THE FINANCING REASONS FOR THE HESITANCY OF OTHERS AREN'T EASY TO TRACE THE BANK HAS SINCE MERGED WITH ANOTHER FINANCIAL INSTITUTION AND THE OFFICERS MOST FAMILIAR WITH THE PROJECT HAVE LEFT MR WARREN NEXT SOUGHT HELP FROM BALTIMORE MAYOR KURT SCHMOKE BECAUSE THE CITY WAS INTERESTED IN DEVELOPING THE AREA AROUND THE NEW FEDERAL BUILDING THE CITY AGREED TO LEASE THE BUILDING FOR ANOTHER 15 YEARS IF THE GSA DIDN'T RENEW ITS 10YEAR COMMITMENT WITH THAT MEASURE OF EXTRA SECURITY THE DEVELOPER TRIED TO SELL TAXABLE BONDS THROUGH LEGG MASON WALKER WOOD INC INVESTMENT BROKERS BUT THE DEAL EVAPORATED IN OCTOBER OF 1991 MR WARREN RECALLS A LEGG MASON SPOKESMAN SAYS ITS DEAL FELL THROUGH BECAUSE THE PRIVATE LENDER IT HAD LINED UP WANTED ADDITIONAL TIME TO CONSIDER THE PROJECT WHICH APPEARED MORE COMPLICATED THAN A STRAIGHTFORWARD MORTGAGE BY LATE FALL 1991 THE GSA WAS GETTING IMPATIENT THE FEDERAL AGENCY INSISTED THAT CONSTRUCTION START SOON OR IT WOULD HAVE TO SWITCH DEVELOPERS SO MR WARREN FORMED THE NEW PARTNERSHIP WITH EVANS WHICH HAD THE CASH AND OTHER RESOURCES TO BEGIN CONSTRUCTION WHILE THE DEVELOPER CONTINUED TO SEEK FINANCING CONSTRUCTION BEGAN IN JANUARY OF 1992 EVANS SPENT ABOUT 4 MILLION TO GET THE BUILDING UNDER WAY ON TIME THE NEW PARTNERS THOUGHT IT MIGHT TAKE ONLY ANOTHER MONTH TO SECURE PERMANENT FINANCING BUT THE PROCESS DRAGGED ON UNTIL LAST MAY CONVENTIONAL SOURCES HAD DRIED UP AS THE RECESSION LINGERED MANY BANKS WERE MORE EAGER TO GET RID OF COMMERCIAL REALESTATE LOANS THAN TO MAKE NEW ONES SO MR WARREN EXPLORED UNORTHODOX APPROACHES AND HE LEARNED THAT SOME INVESTMENT BROKERS WERE STILL USING INDUSTRIAL REVENUE BONDS TO FINANCE GOVERNMENTBACKED CONSTRUCTION FINALLY TAXABLE BONDS FOR CITY CRESCENT WERE ISSUED BY MARYLAND'S INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY AND SOLD THROUGH SHEARSON LEHMAN BROS AS UNDERWRITER SHEARSON PUT UP THE INITIAL CAPITAL UNTIL THE BONDS WERE PURCHASED PRIVATELY BY SEVERAL INSURANCE COMPANIES STEPHEN GARCHIK THE PRESIDENT OF EVANS SAYS HIS IMPRESSION WAS THAT MOST LENDERS DIDN'T TRY HARD ENOUGH TO DO THE DEAL WITH MR WARREN IN THE MONTHS BEFORE THE NEW PARTNERSHIP FORMED HE SAYS FOR EXAMPLE THAT BANKS COULD HAVE URGED MR WARREN TO SEEK A MORE EXPERIENCED PARTNER FOR THE PROJECT SOONER THAN HE DID WHO KNOWS IN THE END WHAT THE REASONS WERE MR GARCHIK ASKS IN FAIRNESS TO THE BANKS OTIS DIDN'T HAVE EXPERIENCE ON A PROJECT OF THIS SIZE BUT USUALLY WHEN YOU HAVE A LEASE FROM THE FEDERAL GOVERNMENT YOU LOOK FOR WAYS TO SOLVE PROBLEMS NOT CREATE THEM MS SADDLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9302190179 930219 CANADIAN WAGE INCREASES SLOWED OTTAWA MAJOR CANADIAN WAGE SETTLEMENTS REACHED LAST YEAR PROVIDED INCREASES AVERAGING 21 ANNUALLY THE FEDERAL LABOR DEPARTMENT SAID THE ANNUAL INCREASE WAS THE LOWEST RECORDED SINCE 1978 WHEN THE LABOR DEPARTMENT BEGAN COLLECTING THE WAGE DATA WAGE INCREASES AVERAGED 36 IN 1991 AND 56 IN 1990 WAGE RESTRAINT MEASURES IMPLEMENTED BY THE CANADIAN AND SEVERAL PROVINCIAL GOVERNMENTS HELPED SLOW WAGE INCREASES LAST YEAR 9302190178 930219 WEAN EXTENDS EXCHANGE OFFER PITTSBURGH WEAN INC SAID IT EXTENDED ITS EXCHANGE OFFER ON ITS 55 CONVERTIBLE SUBORDINATED DEBENTURES TO MARCH 1 FROM FEB THE MAKER OF STEEL PROCESSING EQUIPMENT IS OFFERING TO SWAP A NEW 8 CONVERTIBLE SENIOR SUBORDINATED NOTE DUE MARCH 1 2004 IN THE PRINCIPAL AMOUNT OF 100 EACH FOR EACH 100 IN PRINCIPAL AMOUNT OF THE 55 DEBENTURES DUE MARCH 1 ABOUT 12 MILLION ARE OUTSTANDING OF WHICH 275 MILLION HAVE BEEN TENDERED 9302190177 930219 FINANCING BUSINESS GYMBOREE CORP GYMBOREE CORP BURLINGAME CALIF SAID IT REGISTERED FOR AN INITIAL PUBLIC OFFERING OF 19 MILLION COMMON SHARES THE CHILDREN'SAPPAREL RETAILER SAID PROCEEDS WILL BE USED TO FINANCE ADDITIONAL STORES TO INCREASE WORKING CAPITAL AND FOR GENERAL CORPORATE PURPOSES THE COMPANY WHICH OPERATES ABOUT 350 FRANCHISED STORES SAID IT EXPECTS THE SHARES TO SELL AT BETWEEN 13 AND 15 EACH THE UNDERWRITERS WILL BE GOLDMAN SACHS & CO AND MONTGOMERY SECURITIES 9302190176 930219 STERLING SOFTWARE DEBENTURES DALLAS STERLING SOFTWARE INC SAID THE HOLDERS OF 137 MILLION PRINCIPAL AMOUNT OF ITS 8 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE 2001 CONVERTED THEIR DEBENTURES TO COMMON STOCK THE SOFTWARE CONCERN ISSUED 636054 COMMON SHARES TO THESE HOLDERS UPON CONVERSION AT FEB 10 THE COMPANY HAD 103 MILLION SHARES OUTSTANDING THE REMAINING 389 MILLION PRINCIPAL AMOUNT OF THE DEBENTURES WILL BE REDEEMED AT 1032 OF THE PRINCIPAL AMOUNT ON MARCH 4 THE COMPANY SAID 9302190175 930219 MOODY'S UPGRADES RATINGS ON 25 BILLION OF TRANSCO'S DEBT NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED THE RATINGS ON 25 BILLION OF DEBT OF TRANSCO ENERGY CO THE RATINGS AGENCY CITED CONTINUED POSITIVE OPERATING RESULTS RESOLUTION OF MAJOR CONTRACT DISPUTES AND A MODERATE REDUCTION OF THE COMPANY'S HEAVY DEBT LEVERAGE MOODY'S CHANGED TRANSCO'S SENIOR UNSECURED DEBT RATING TO BA3 FROM B1 SHELF REGISTRATION FOR SENIOR DEBT TO PBA3 FROM PB1 AND CONVERTIBLE PREFERRED STOCK TO B2 FROM B3 RATINGS ON TRANSCO'S UNIT'S SENIOR NOTES AND DEBENTURES WERE ALSO UPGRADED TO BA2 FROM BA3 AND PREFERRED STOCK TO B1 FROM B2 TRANSCO A DIVERSIFIED ENERGY COMPANY IN HOUSTON HAS BEEN RESTRUCTURING DURING THE PAST YEAR WHICH INVOLVED SALE OF ASSETS SETTLEMENT OF CONTRACT DISPUTES AND THE RENEGOTIATION OF BANK AGREEMENTS ALTHOUGH FAR FROM COMPLETE MOODY'S SAID IT BELIEVES THE RESTRUCTURING WILL CONTINUE BUT AT A NECESSARILY SLOW PACE THE TWO PIPELINE SEGMENTS OF TRANSCO ARE EXPECTED TO PROVIDE SUFFICIENT OPERATING PROFIT AND CASH FLOW TO ENABLE A SLOW BUT CONTINUED IMPROVEMENT SAID MOODY'S HOWEVER TRANSCO IS STILL BURDENED BY CERTAIN BUSINESSES INCLUDING THE NATURAL GAS MARKETING COAL MINING AND MARKETING AND COALBED METHANE WHICH PRODUCE ONLY MARGINALLY PROFITABLE AND SOMETIMES NEGATIVE RESULTS SAID THE RATINGS AGENCY 9302190174 930219 MARKETING & MEDIA PULITZER PUBLISHING SIGNS LETTER OF INTENT TO BUY 2 TV STATIONS ST LOUIS PULITZER PUBLISHING CO SAID IT SIGNED A LETTER OF INTENT TO BUY TWO TELEVISION STATIONS FROM CLOSELY HELD H&C COMMUNICATIONS INC OF HOUSTON TEXAS FOR 165 MILLION THE STATIONS ARE WESHTV THE NBC AFFILIATE IN DAYTONA BEACH FLA AND KCCITV THE CBS AFFILIATE IN DES MOINES IOWA PULITZER SAID THE ACQUISITIONS WOULD INCREASE TO NINE THE NUMBER OF NETWORK AFFILIATED TELEVISION STATIONS IT OWNS AND OPERATES WESH SERVES DAYTONA BEACH ORLANDO AND MELBOURNE WHICH PULITZER SAID IS THE 23RDLARGEST US TELEVISION MARKET DES MOINES IS THE 70THLARGEST MARKET H&C COMMUNICATIONS ACQUIRED BOTH STATIONS FROM COWLES BROADCASTING INC IN 1985 THE LETTER OF INTENT IS SUBJECT TO AMONG OTHER THINGS A DEFINITIVE PACT AND FEDERAL COMMUNICATIONS COMMISSION APPROVAL AFTER THE TRANSACTION H&C COMMUNICATIONS WILL BE LEFT WITH TELEVISION STATIONS IN HOUSTON SAN ANTONIO AND TUCSON ARIZ PULITZER IS A NEWSPAPER PUBLISHER AND BROADCASTER 9302190173 930219 GERMAN STEELMAKERS ARE SAID TO BE LOSING 1846 MILLION A MONTH SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMAN STEEL COMPANIES ARE LOSING 300 MILLION MARKS 1846 MILLION EACH MONTH THE HEAD OF THE STEEL MANUFACTURERS ASSOCIATION SAID IN ADDITION ABOUT 25000 TO 30000 JOBS IN THE SECTOR ARE ENDANGERED THE OFFICIAL RUPRECHT VONDRAN SAID IN AN INTERVIEW ON ZDF TELEVISION WE'RE SEARCHING FOR A CONCEPT THAT WILL CLEAN UP THE MARKET ON THE BASIS OF COOPERATION AND WILL CONTRIBUTE TO PRICES STABILIZING AT AN ADEQUATE LEVEL HE ADDED A SPOKESMAN FOR KRUPP STAHL AG TOLD A GERMAN NEWSPAPER THAT THE COMPANY IS DISCUSSING POSSIBLE COOPERATION WITH THYSSEN STAHL AG AND SAARSTAHL AG ABOUT 15000 GERMAN STEELWORKERS TOOK TO THE STREETS WEDNESDAY TO PROTEST THE THREAT OF MASSIVE JOB LOSSES AND THEIR EMPLOYERS ALREADY HAVE ANNOUNCED PLANS TO INCREASE PRICES IN AN EFFORT TO BOOST PROFITS ANALYSTS HOWEVER ARE SKEPTICAL THAT THEY WILL SUCCEED MEANWHILE EUROPEAN COMMUNITY OFFICIALS WARNED STEELMAKERS ACROSS EUROPE THAT THEY WOULD HAVE TO CLOSE EVEN MORE MILLS IN EXCHANGE FOR EC FINANCIAL SUPPORT 9302190172 930219 INTERNATIONAL MERCEDESBENZ LEANING TOWARD US CAR PLANT BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL FRANKFURT MERCEDESBENZ AG COULD BE THE NEXT GERMAN AUTOMOBILE MANUFACTURER TO PRODUCE PASSENGER CARS IN THE US A SPOKESMAN AT THE COMPANY'S STUTTGART HEADQUARTERS CONFIRMED YESTERDAY THAT THE US HAS HIGH PRIORITY AS MERCEDES SHOPS AROUND FOR A SITE OUTSIDE GERMANY TO BUILD ITS PROPOSED FOURWHEELDRIVE RECREATIONAL VEHICLE HE WOULDN'T COMMENT ON POSSIBLE LOCATIONS IN THE US A DECISION IS EXPECTED WITHIN SIX MONTHS MERCEDES CHAIRMAN WERNER NIEFER SAID EARLIER THIS WEEK MERCEDES THE AUTOMOBILE AND TRUCK DIVISION OF GERMANY'S DAIMLERBENZ AG GROUP CURRENTLY DOESN'T BUILD PASSENGER CARS IN NORTH AMERICA ALTHOUGH IT BUILDS TRUCKS IN BOTH THE US AND MEXICO PRINCIPALLY THROUGH ITS FREIGHTLINER CORP UNIT BASED IN PORTLAND ORE WE HAVE TO BUILD WHERE THERE ARE CUSTOMERS WHO BUY MR NIEFER SAID THE COMPANY ALSO IS STUDYING SITES IN PORTUGAL AND EASTERN EUROPE HE SAID YESTERDAY'S COMMENTS ECHO STATEMENTS FROM THE COMPANY IN RECENT WEEKS LAST MONTH MERCEDES DEPUTY CHAIRMAN HELMUT WERNER SAID THE US HAS A CLEAR PRIORITY FOR THE NEW PLANT IN JUNE RIVAL GERMAN CAR MAKER BAYERISCHE MOTOREN WERKE AG BROKE GROUND ON A 625 MILLION ASSEMBLY PLANT NEAR SPARTANBURG SC ITS FIRST PLANT OUTSIDE GERMANY GERMAN PRODUCTION AND LABOR COSTS ARE VERY HIGH BMW WAS THE FIRST EUROPEAN CAR MAKER TO BUILD A US FACTORY SINCE VOLKSWAGEN AG CLOSED ITS ONLY US FACTORY IN 1988 THERE HAS BEEN SPECULATION THAT MERCEDES MIGHT MAKE A SUBCOMPACT TWODOOR CITY CAR IN THE US AT SOME POINT MR WERNER SAID THIS YEAR THAT MERCEDES WANTS TO MAKE A HIGHECONOMY LOWPOLLUTION HATCHBACK FOR CONGESTED URBAN AREAS ANALYSTS BELIEVE A US MANUFACTURING SITE IS A POSSIBILITY BECAUSE THE NEW CAR IS LARGELY INTENDED TO HELP MERCEDES MEET FUTURE US FLEETMILEAGE STANDARDS THE US PASSENGER CAR MARKET IS ENORMOUSLY IMPORTANT TO US AND RANKS AS THE SECONDLARGEST BEHIND GERMANY MERCEDES SAID MERCEDES' PASSENGER CARSALES IN THE US ROSE 4400 OR MORE THAN 7 TO 63300 IN 1992 WHILE NEW CAR SALES IN THE HOME GERMAN MARKET DROPPED 31400 OR 12 TO 239000 9302190170 930219 PACIFIC TELESIS TO BUY ASSETS SAN FRANCISCO PACIFIC TELESIS GROUP'S PAGING UNIT SAID IT PLANS TO ACQUIRE THE ASSETS OF CITIZENS UTILITIES CO'S PAGING COMPANIES ADDING MORE THAN 25000 NEW PAGING CUSTOMERS IN CALIFORNIA ARIZONA AND UTAH TERMS WEREN'T DISCLOSED THE TRANSACTION WHICH IS SUBJECT TO REGULATORY APPROVALS IS EXPECTED TO CLOSE THIS SUMMER WITH THE ACQUISITION PACTEL PAGING WILL ENTER THE SALT LAKE CITY MARKET AND EXPAND ITS CUSTOMER BASE IN NORTHERN CALIFORNIA SAN DIEGO LOS ANGELES PHOENIX AND TUCSON ARIZ CITIZENS UTILITIES STAMFORD CONN ALSO OPERATES GAS ELECTRIC AND WATER UTILITIES IN VARIOUS STATES 9302190169 930219 THURSDAY'S MARKETS BONDS SURGE IN REACTION TO TAX PLAN A WINWIN SITUATION IS SEEN BY INVESTORS STOCKS DOLLAR MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES SURGED AS INVESTORS BET THAT PRESIDENT CLINTON'S ECONOMIC PLAN WILL EITHER THRUST THE ECONOMY BACK INTO A RECESSION OR SIGNIFICANTLY REDUCE THE US BUDGET DEFICIT STOCK PRICES AND THE DOLLAR ENDED MIXED AS A RESULT OF CONFUSION ABOUT THE EFFECT OF THE PLAN THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A LOSS OF 10 POINTS TO 330219 IN HEAVY TRADING AFTER A WILD DAY THAT SAW IT SWING 80 POINTS FROM PEAK TO TROUGH STANDARD & POOR'S 500STOCK INDEX DROPPED 140 TO 43190 BUT THE NASDAQ COMPOSITE INDEX WHICH HAD EMBARKED ON A FULLSCALE RETREAT EARLIER THIS WEEK RECOVERED SOME OF ITS LOST GROUND RISING 302 TO 66245 BOND INVESTORS DEBATED WHETHER THE INCREASED TAXES IN THE ECONOMIC PLAN WOULD SLOW THE ECONOMY ENOUGH TO PUSH IT BACK INTO RECESSION OR WHETHER THE PLAN WOULD SUCCEED IN SHARPLY REDUCING THE US DEFICIT BUT IN EITHER CASE THEY CONCLUDED INTEREST RATES ARE HEADED LOWER STOCK PRICES CLIMBED RAPIDLY AFTER THE OPENING BELL CLOSE ON THE HEELS OF SOARING BOND PRICES BUT STOCK INVESTORS SOON BEGAN TAKING PROFITS AS THE DEBATE CONTINUED OVER THE EFFECTS OF THE ECONOMIC PACKAGE AT MIDDAY SELLING ACCELERATED SHARPLY AFTER A NEWS REPORT SAID ADMINISTRATION DOCUMENTS INDICATED THE PRESIDENT WOULD FALL 170 BILLION SHORT OF CUTTING THE US DEFICIT BY 493 BILLION OVER FOUR YEARS THE DROP WAS EXAGGERATED BY THE RUMORED SALE OF AS MUCH AS 1 BILLION OF STOCK BY A WEST COAST FIRM TRADERS SAID THE FIRM WAS SELLING STOCKS AND MOVING INTO BONDS AS PART OF AN ASSETALLOCATION SHIFT THE ONLY EXPLANATION I HAVE FOR THE DROP IS THAT THE MARKET HAD SECOND THOUGHTS ABOUT THE CLINTON ECONOMIC PLAN SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ HE SAID INVESTORS INITIALLY BOUGHT STOCKS ON THE ASSUMPTION THE WORST FEARS ABOUT THE EFFECTS OF THE PLAN HAD CREATED BARGAINS IN THE MARKET BUT CLOSER ANALYSIS OF THE PLAN UNVEILED MORE PROBLEMS FOR STOCK INVESTORS SAID TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST PEOPLE BEGAN TO FOCUS ON THE NEGATIVE EFFECTS OF THE FISCAL STIMULUS PACKAGE HE SAID INCLUDING THE PROSPECTS OF INCREASED GOVERNMENT REGULATION HIGHER TAXES AND A SUBSTANTIAL INCREASE IN GOVERNMENT SPENDING BUT MR MCALINDEN SAID HE IS ENCOURAGED ABOUT THE OUTLOOK FOR THE MARKET PARTICULARLY BECAUSE OF THE RESILIENCE IT SHOWED YESTERDAY I THINK WHAT IS MOST IMPORTANT IS THE WAY THE MARKET CLOSED HE SAID THERE'S NO QUESTION WE HAD A BIG ROLLER COASTER RIDE BUT WE CLOSED ONLY MODERATELY LOWER ON THE DAY WORLDWIDE STOCK PRICES GAINED THE DOW JONES WORLD STOCK INDEX WAS UP 021 TO 9376 ANALYSTS SAID EUROPEAN STOCK MARKETS MARCHED TO THEIR OWN DRUMMER THE GERMAN FRENCH DUTCH AND SWEDISH STOCK MARKETS EACH ROSE 11 BRITISH SHARES WERE UP 08 MANY EUROPEAN TRADERS BETTING THAT PRICES WERE GOING TO FALL HAD BEGUN SELLING STOCKS WITH THE INTENTION OF BUYING THEM BACK AT LOWER PRICES BUT WHEN PRICES ROSE INSTEAD THEY WERE FORCED TO CUT THEIR LOSSES SAID DAVID HAYSEY DIRECTOR OF EUROPEAN EQUITY SALES AT SG WARBURG & CO IN LONDON IT WAS A LITTLE BIT OF A SHORT SQUEEZE HE SAID MIRRORING THE ROLLER COASTER RIDE IN US STOCK PRICES THE DOLLAR INITIALLY SOARED AFTER PRESIDENT CLINTON'S SPEECH AND THEN GAVE UP MOST OF ITS GAINS WHEN THE BOND MARKET'S RALLY SIGNALED LOWER INTEREST RATES AHEAD STOCK PRICES WERE MIXED VOLUME ON THE NEW YORK STOCK EXCHANGE TOTALED 3094 MILLION SHARES ADVANCERS ON THE BIG BOARD WERE AHEAD OF DECLINERS 1040 TO 878 BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN A FULL POINT OR OVER 10 FOR 1000 FACE AMOUNT TO YIELD 702 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16325 MARKS AND 11925 YEN COMPARED WITH 16253 MARKS AND 11965 YEN WEDNESDAY 9302190168 930219 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK CLIFFORD L ALEXANDER JR WAS NAMED A DIRECTOR AT THIS BUSINESS INFORMATION SERVICES CONCERN INCREASING THE BOARD'S SIZE TO 15 MEMBERS MR ALEXANDER 59 YEARS OLD IS PRESIDENT OF ALEXANDER & ASSOCIATES INC A PRIVATE CONSULTING FIRM IN WASHINGTON 9302190167 930219 WHO'S NEWS WESTINGHOUSE'S MASSARO RESIGNS TWO POSITIONS BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID ANTHONY MASSARO 48 YEARS OLD RESIGNED AS A MEMBER OF THE OFFICE OF THE PRESIDENT AND HEAD OF THE ENVIRONMENTAL UNIT IN ORDER TO PURSUE OTHER INTERESTS WESTINGHOUSE SAID JOHN B YASINSKY 53 WHO CURRENTLY OVERSEES THE ENERGY SYSTEMS AND POWER GENERATION UNITS WILL TAKE RESPONSIBILITY FOR MR MASSARO'S UNIT AS WELL THE ENVIRONMENTAL UNIT WHICH CONSISTS OF BUSINESSES IN ENVIRONMENTAL SERVICES AND MANAGEMENT OF GOVERNMENT FACILITIES INCLUDING THE ENERGY DEPARTMENT'S SAVANNAH RIVER PLANT HAD BEEN TOUTED DURING THE LATE 1980S AS THE COMPANY'S NEXT GREAT ENGINEERING BUSINESS BUT IT HAS BEEN AN UNEVEN PERFORMER WITH A LOSS OF 7 MILLION ON 12 BILLION IN REVENUE IN 1991 MR MASSARO'S RESIGNATION COINCIDED WITH THAT OF HIS WIFE EILEEN MASSARO 41 WHOSE DEPARTURE FROM HER JOB AS VICE PRESIDENT CORPORATE RELATIONS WAS ANNOUNCED WEDNESDAY THE COUPLE HAD BEEN AMONG THE CLOSEST ADVISERS TO PAUL LEGO WHO RESIGNED LAST MONTH AS CHIEF EXECUTIVE OFFICER AMID UNREST OVER HIS LEADERSHIP AMONG SHAREHOLDERS AND AT THE COMPANY THEY ALSO ARE PERSONAL FRIENDS OF MR LEGO OWNING A WINERY WITH HIM IN ITALY THE DIVERSIFIED MANUFACTURING AND BROADCASTING CONCERN ALSO SAID THOMAS P COSTELLO 61 HEAD OF ITS SUCCESSFUL THERMO KING CORP UNIT WAS NAMED A GROUP PRESIDENT TO OVERSEE FOUR BUSINESSES EARMARKED FOR SALE IN THE NEXT TWO TO THREE YEARS IN HIS NEW POSITION WHICH HAD BEEN HELD BY GARY M CLARK BEFORE HIS APPOINTMENT AS ACTING CEO MR COSTELLO WILL OVERSEE THE DISTRIBUTION AND CONTROL UNIT THE KNOLL GROUP OFFICE FURNITURE BUSINESS WESTINGHOUSE COMMUNITIES A REAL ESTATE DEVELOPER AND WESTINGHOUSE ELECTRIC SUPPLY CO WESTINGHOUSE ALSO SAID IT ADDED MR COSTELLO TO ITS MANAGEMENT COMMITTEE BRINGING THE PANEL TO EIGHT MEMBERS A SUCCESSOR HASN'T BEEN NAMED TO ASSUME MR COSTELLO'S OPERATING RESPONSIBILITIES AT THERMO KING WHICH MAKES REFRIGERATION UNITS FOR TRUCKS BURTON B STANIAR 51 GROUP PRESIDENT OVERSEEING THE BROADCASTING UNIT AND THERMO KING ALSO WILL SUPERVISE AN INDUSTRIAL PRODUCTS AND SERVICES UNIT INCLUDING SEVERAL SMALL DIVERSE BUSINESSES 9302190166 930219 CBOE'S NEW S&P 500 OPTION CHICAGO STARTING MONDAY THE CHICAGO BOARD OPTIONS EXCHANGE WILL OFFER A VERSION OF ITS POPULAR STANDARD & POOR'S 500STOCK INDEX OPTIONS THAT EXPIRES QUARTERLY TO MESH WITH TRADITIONAL ACCOUNTING PERIODS THE OPTIONS WILL EXPIRE ON THE FIRST BUSINESS DAY OF THE MONTH FOLLOWING THE END OF A CALENDAR QUARTER THE EXERCISE SETTLEMENT OF THE OPTIONS IS BASED ON THE CLOSING VALUE OF THE S&P 500 INDEX OF 500 LEADING STOCKS ON THE LAST BUSINESS DAY OF THE PRECEDING QUARTER THE CBOE'S CURRENT STOCKINDEX OPTIONS EXPIRE ON THE SATURDAY IMMEDIATELY FOLLOWING THE THIRD FRIDAY OF EACH EXPIRATION MONTH 9302190165 930219 RAYS OF HOPE METAMORPHOSIS AT GM IN STYLE AND SUBSTANCE MAY BE TAKING HOLD JACK SMITH STEERS A DRIVE FOR EFFICIENCY AS MORALE GETS A WELCOME BOOST CHALLENGE IS STILL GIGANTIC BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT IT'S BEEN A HEADY TIME LATELY FOR GENERAL MOTORS CORP AND ITS FLEDGLING CHIEF EXECUTIVE OFFICER JOHN F SMITH JR LAST WEEK THE AUTO MAKER HUMILIATED CRITICS AT NBC NEWS FORCING A PUBLIC APOLOGY FOR THE RIGGING OF A GM PICKUP WITH MODEL ROCKET ENGINES TO CREATE A FIERY CRASH NEXT MR SMITH ASSERTED HIS INDEPENDENCE FROM DETROIT'S PROTECTIONISTS BY DERAILING PLANS TO LEVEL DUMPING CHARGES AGAINST JAPANESE CAR MAKERS THEN ON FEB 11 MR SMITH SCORED A DOUBLE COUP GM IMPRESSED WALL STREET BY REPORTING A 273 MILLION FOURTHQUARTER OPERATING PROFIT BEFORE ITS AVALANCHE OF SPECIAL CHARGES AND MR SMITH HELD AN UNPRECEDENTED MEETING WITH SEVERAL HUNDRED UNITED AUTO WORKERS UNION LOCAL LEADERS WHO EMERGED SINGING HIS PRAISES HE DIDN'T USE 600 WORDS AND HE WAS FRANK SAYS DICK LONG PRESIDENT OF UAW LOCAL 653 IN PONTIAC MICH IT'S JUST REFRESHING NONE OF THIS NECESSARILY MARKS A TURNING POINT IN WHAT HAS BEEN A HISTORIC CORPORATE DECLINE GM STILL HAS BIG HOLES IN ITS PRODUCT LINEUP SOARING HEALTHCARE COSTS A HUGE UNFUNDED PENSION LIABILITY AND GROSSLY INEFFICIENT FACTORIES IT ALSO FACES TOUGH NATIONAL LABOR NEGOTIATIONS THIS FALL AND A GIANT WRITEOFF FOR FUTURE HEALTH CARE ALTHOUGH A NONCASH CHARGE HAS JUST FORCED GM TO REPORT THE LARGEST ONEYEAR NET LOSS IN US CORPORATE HISTORY 235 BILLION CLEARLY THOUGH RECENT EVENTS HAVE MARKED A TURNAROUND IN CONFIDENCE AT AN ORGANIZATION THAT MADE ALL THE WRONG MOVES FOR NEARLY A DECADE THE SOARING SPIRITS WERE EVIDENT AS G RICHARD WAGONER GM'S 40YEAROLD CHIEF FINANCIAL OFFICER OPENED A NEWS CONFERENCE LAST WEEK BY CHECKING THE MICROPHONE WIRING UNDER HIS COAT AND QUIPPING I JUST WANT TO MAKE SURE THERE ISN'T A SOLIDFUEL ROCKET IN HERE FOR MONTHS MR SMITH AND HIS CREW OF YUPPIE REVOLUTIONARIES HAD HOLED UP IN A NONDESCRIPT OFFICE BUILDING IN SUBURBAN WARREN MICH WHILE SUBORDINATES NERVOUSLY AWAITED MARCHING ORDERS THE EXECUTIVES SIFTED THROUGH THE RUBBLE OF GM'S NORTH AMERICAN AUTO BUSINESS WHICH HAD LOST MORE THAN 10 BILLION IN JUST THE PAST TWO YEARS NOW MR SMITH AND HIS LIEUTENANTS ARE EMERGING FROM THE BUNKER THE PLAINSPOKEN SELFEFFACING CEO KNOWN AS JACK IS CERTAINLY NO GLADHANDER BUT HE STEPPED OUT IN PUBLIC AT GM'S CHICAGO AUTO SHOW LUNCHEON FEB 5 TO OUTLINE HIS AGENDA THEN HOBNOBBED WITH DEALERS AT THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION'S CONVENTION IN NEW ORLEANS THROUGHOUT THE 54YEAROLD MR SMITH PRESIDENT SINCE APRIL AND CEO SINCE LAST NOVEMBER'S BOARDROOM COUP WAS IN GOOD SPIRITS YET HE HAD ONLY TO GLANCE AT HIS WATCH TO GET A REALITY CHECK HE AND SEVERAL OTHER EXECUTIVES ARE WEARING THEIR WATCHES ON THEIR RIGHT WRISTS AS LONG AS GM IS IN THE RED PURISTS VOW TO DO SO TILL GM AGAIN SEES RECORD PROFITS THOUGH MR SMITH SAYS ANY NET INCOME WILL DO FOR HIM I'M PUTTING IT BACK WITH PROFIT HE DECLARES WITH AN EXASPERATED TONE THERE ARE OTHER REMINDERS OF THE CHALLENGES AHEAD THE MOST OBVIOUS GM'S SHARE OF THE US CAR AND LIGHT TRUCK MARKET HAS SHRUNK TO 33 DOWN FROM 347 A YEAR AGO AND LOWER THAN EXECUTIVES EXPECTED NEW MODELS THAT MIGHT HALT THE SLIDE WON'T BE OUT FOR A YEAR OR MORE AND WHILE GM APPEARS TO BE OFF THE CRITICAL LIST ITS FLIRTATION WITH CATASTROPHE HAS SHOT ITS BALANCE SHEET FULL OF HOLES ONE IS A 14 BILLION UNFUNDED PENSION LIABILITY THAT WILL FORCE IT TO DIVERT CASH THAT MIGHT OTHERWISE GO TO DEVELOP NEW VEHICLES DESPITE CATCHING NBC'S RIGGED TEST GM STILL FACES A FEDERAL SAFETY PROBE OF ITS 197387 PICKUPS AND THEIR SIDEMOUNTED FUEL TANKS AND MUST APPEAL A 1052 MILLION JURY AWARD TO A GEORGIA FAMILY WHOSE SON WAS KILLED WHEN HIS TRUCK WAS HIT SO HAVING STEERED GM AWAY FROM THE BRINK MR SMITH AND HIS AIDES NOW ARE DRIVING TO OVERHAUL EVERYTHING ABOUT THE COMPANY FROM ITS CULTURE TO ITS CARS IN DECEMBER THE HEADQUARTERS STAFF RECEIVED A MEMO THAT SAID THE EXECUTIVE DINING ROOM WAS CLOSING AND ASKED BOSSES TO CONSIDER CONSCIOUSLY BEING MORE FRIENDLY AND RECOGNIZING PEOPLE IN THE HALL WAYS THEY ALSO WERE TOLD TO LEAVE THEIR DARK BUSINESS SUITS HOME ON FRIDAYS AND COME TO THE OFFICE IN BUSINESS CASUAL ATTIRE NOW SOME CARRY AN EXTRA OUTFIT TO WORK ON FRIDAYS SO THEY CAN BE APPROPRIATELY ATTIRED FOR CERTAIN MEETINGS WHILE OTHERS SIMPLY LOSE TRACK WHEN GENERAL COUNSEL HARRY J PEARCE WHO LED THE CHARGE AGAINST NBC CAME IN AT THE END OF LAST WEEK IN SUIT AND TIE HE SHEEPISHLY ADMITTED I FORGOT IT WAS FRIDAY BUT THESE STYLE POINTS ARE ONLY SYMBOLS OF DEEPER CHANGE IF WE DON'T GET MORE EFFICIENT DECLARES MR SMITH WE WON'T BE AROUND THAT PRINCIPLE IS LEAVING FEW AREAS OF GM'S CORPORATE LIFE UNTOUCHED GMERS USED TO CRANK OUT LENGTHY SINGLESPACED REPORTS TO BACK UP PRESENTATIONS TO THE BOARD AND THE RULING MANAGEMENT COMMITTEE BUT MR SMITH HAS SENT WORD THAT THE BEST REPORTS ARE ONE PAGE LONG THAT'S HOW IT IS DONE AT PROCTER & GAMBLE CO WHOSE FORMER CHAIRMAN JOHN G SMALE IS NOW THE CHAIRMAN OF GM MEANWHILE MR SMITH HAS SLASHED THE CENTRAL OFFICE STAFF TO 2000 PEOPLE FROM ABOUT 13000 FORCING GM INTO AN ENTIRELY NEW OPERATING SYSTEM MAJOR ISSUES SUCH AS PRICING OR PRODUCT PLANNING NO LONGER SHUTTLE AMONG VARIOUS COMMITTEES INSTEAD SEVERAL TIMES A MONTH MR SMITH CONVENES HIS NORTH AMERICAN STRATEGY BOARD MADE UP OF THE HEADS OF THE MAJOR OPERATING DIVISIONS AND OTHER KEY EXECU TIVES MEMBERS DEBATE AND DECIDE ISSUES ON THE AGENDA WITH SOME LOWERLEVEL MAN AGERS RIGHT IN THE ROOM WE MAKE DECISIONS SAYS MR PEARCE DESCRIBING THE DIFFERENCE BETWEEN THE NEW SYSTEM AND THE OLD ONE SKEPTICS OF COURSE ABOUND THEY SAID 1993 WAS THE YEAR TO FOCUS ON THE CUSTOMER DEALER JOHN COVELL SAYS WITH A SNEER MR COVELL A VICE PRESIDENT AT AN EAST WALPOLE MASS COMPANY THAT OWNS SEVERAL GM AND NONGM FRANCHISES SAYS THAT I HAD A CADILLAC DEVILLE COME IN WITH DOORS THAT WERE A DIFFERENT COLOR THAN THE BODY GM OFFICIALS SAY BEEFEDUP CHECKS AT THE FACTORIES HAVE IMPROVED OVERALL QUALITY IN RECENT MONTHS OVERCOMING SUCH CYNICISM BRED BY YEARS OF UNMET PROMISES IS ONE OF MR SMITH'S HARDEST CHALLENGES NO CEO AT THE COMPANY HAS HAD IT TOUGHER SINCE ANOTHER YOUNG EXECUTIVE ALFRED P SLOAN WAS THRUST INTO THE DRIVER'S SEAT IN THE 1920S BY A BOARD OF DIRECTORS THAT LIKE THE CURRENT ONE FEARED FOR GM'S SURVIVAL MR SLOAN DECENTRALIZED OPERATING RESPONSIBILITY WITHIN A FRAMEWORK OF RIGOROUS FINANCIAL CONTROL BUT AS GM GREW THROUGH ACQUISITION IT EVOLVED INTO A CONFEDERATION OF STATES EACH WITH ITS OWN METHODS OF PURCHASING ACCOUNTING AND MANUFACTURING AND EACH VYING FOR FAVOR FROM AN INCREASINGLY BUREAUCRATIC CENTRAL OFFICE ALL THE REORGANIZATION AND DIVERSIFICATION ROGER B SMITH INITIATED AS CHAIRMAN IN THE 1980S DIDN'T CHANGE THAT BASIC STRUCTURE PRESIDENT JACK SMITH NO RELATION THUS INHERITED A CORPORATION THAT WAS SAPPING ITS ENERGY THROUGH DIFFERENTIATION THAT DIDN'T MATTER TO CAR BUYERS GM HAD 27 DOMESTIC PURCHASING OPERATIONS SEPARATE WARRANTYCLAIMS DEPARTMENTS FOR EACH DOMESTIC MARKETING DIVISION AND OPERATIONS THAT FABRICATED NEARLY THREE DOZEN DIFFERENT KINDS OF HORNS BUT ITS MAIN MIDSIZE CARS DIDN'T AND STILL DON'T HAVE AIR BAGS TO FIX GM MR SMITH MUST SOLVE ANEW THE RIDDLE OF MAKING ITS SIZE AN ASSET INSTEAD OF A LIABILITY IN THE EFFORT HE IS TOSSING OUT MUCH OF THE LEGACY NOT ONLY OF MR SLOAN BUT OF HIS IMMEDIATE PREDECESSORS ROGER SMITH AND ROBERT C STEMPEL GONE ARE THE MULTIHEADED ENGINEERING AND MANUFACTURING GROUPS ROGER SMITH CREATED GONE IS THE PLODDING APPROACH TO COST CUTTING THAT MR STEMPEL ESPOUSED OUT OF FEAR THAT TOORAPID CHANGE WOULD TRAUMATIZE WORKERS AND SUPPLIERS SUBSTANTIALLY CHANGED TOO IS THE CAR FOR EVERY NICHE PROGRAM OF FORMER PRESIDENT LLOYD E REUSS THAT IN JACK SMITH'S WORDS SPREAD OUR RESOURCES TOO THIN INSTEAD MR SMITH IS CONDUCTING RAPID TRIAGE TO CUT COSTS AND RAISE CASH FLOW SO HE CAN FEED DEVELOPMENT OF A SMALLER ARRAY OF VEHICLES AIMED MAINLY AT MAINSTREAM HIGHPROFIT SEGMENTS MR SMITH HAS BROUGHT IN OUTSIDERS AT EVERY LEVEL TO HELP GM DEVELOP COMMON SYSTEMS FOR DESIGN AND MANUFACTURING ONE STRIKING MOVE A DEAL WITH A JAPANESE METAL DIE MAKER TO LEAD THE OVERHAUL OF GM'S DIEMAKING OPERATIONS GM'S 9000 US DEALERS ARE ABOUT TO GET SHAKEN UP TOO AFTER YEARS OF FALSE STARTS THE COMPANY IS ROLLING OUT A PROGRAM PROJECT 2000 TO RELOCATE DEALERSHIPS FROM DECAYING DOWNTOWNS TO HIGHTRAFFIC SUBURBAN SITES SOME 2000 DEALERSHIPS COULD BE MERGED OUT OF EXISTENCE GM'S TWO MOST TROUBLED MARKETING DIVISIONS MEANWHILE ARE LAUNCHING THEIR OWN REFORM EFFORTS AT STRUGGLING OLDSMOBILE BLUNTSPOKEN GENERAL MANAGER JOHN D ROCK HAS FLOWN HIS SENIOR STAFF DOWN TO SPRING HILL TENN FOR FULL IMMERSION IN THE CULTURE OF GM'S SATURN SUBSIDIARY ONE HIGHLIGHT A TOUR OF AN OUTDOOR OBSTACLE COURSE THAT'S DESIGNED TO BUILD TEAMWORK OLDS ALSO IS DABBLING IN SATURNSTYLE NO HAGGLE PRICING BY OFFERING A WELLEQUIPPED VERSION OF ITS CUTLASS SUPREME FOR 15995 SALES OF THE SUPREME SINCE THE START OF THE YEAR ARE UP 20 FROM A YEAR AGO AILING CHEVROLET FOR ITS PART WILL CUT ITS CENTRAL STAFF TO 1655 PEOPLE BY YEAR END FROM 4000 IN 1984 SOME WHO REMAIN WILL BE REDEPLOYED ONLY ABOUT HALF OF SALES AND SERVICE PERSONNEL NOW WORK DIRECTLY WITH DEALERS SOON THAT WILL BE 75 BUT NEITHER OLDS NOR CHEVY WILL MAKE MUCH HEADWAY WITHOUT NEW PRODUCTS AND THOSE WON'T ARRIVE FOR A WHILE OLDS WHOSE SALES HAVE PLUNGED 57 SINCE 1986 IS BUILDING ITS REVIVAL STRATEGY AROUND THE AURORA A SEDAN SIMILAR IN SIZE TO CHRYSLER CORP'S SUCCESSFUL LH CARS OLDSMOBILE UNVEILED THE AURORA AT DETROIT'S AUTO SHOW LAST MONTH BUT THE CAR WON'T ARRIVE IN SHOWROOMS UNTIL MID1994 CHEVY GOT A NEW CAR THIS YEAR BUT IT WON'T HELP SALES MUCH MR REUSS CHAMPIONED DEVELOPMENT OF THE JUSTLAUNCHED NEW CAMARO BUT THE MUSCLE CAR DRAWS ONLY ABOUT 55000 BUYERS EACH YEAR MEANWHILE CHEVROLET'S MIDSIZE SEDAN AND MINIVAN BOTH CALLED THE LUMINA AS WELL AS ITS BLAZER OFFROAD VEHICLE ARE WOEFULLY INFERIOR TO THE COMPETITION MR SMITH RECENTLY ACCELERATED THE DEVELOPMENT OF A NEW BLAZER BY SEVEN MONTHS BUT IT STILL WON'T BE OUT TILL THE MIDDLE OF NEXT YEAR MEANWHILE THE LUMINA MINIVAN WILL GET A NOSE JOB TO ELIMINATE ITS LONG SNOUT A REVAMPED LUMINA SEDAN WITH AN AIR BAG AT LAST AND A MONTE CARLO MIDSIZE COUPE WILL COME EARLY NEXT YEAR IN DEVELOPING THE SEDAN AND COUPE GM ENGINEERS ARE TRYING TO CUT THE 20 MINUTES AN HOUR WORKERS WASTE WALKING BACK AND FORTH OR FUMBLING FOR PARTS EACH NEW LUMINA SEDAN IS TO REQUIRE LESS THAN 25 HOURS OF LABOR TO ASSEMBLE A 30 DROP MAKING IT COMPARABLE TO FORD'S TAURUS SOME 1400 WORKERS WILL LOSE THEIR JOBS AT THE PLANT IN OSHAWA ONTARIO THAT BUILDS THE LUMINA SEDAN MR SMITH IS DROPPING PREDECESSORS' COSTLY EFFORTS TO AVOID SUCH JOB CUTSEFFORTS LIKE BUILDING CARS FOR WHICH THERE ARE NO ORDERS BUT AS HE STREAMLINES GM HE NEEDS THE TRUST OF THE UAW AND ITS TOP GM NEGOTIATOR STEPHEN P YOKICH LAST FALL MR YOKICH SANCTIONED A SERIES OF LOCAL STRIKES THAT CRIPPLED KEY PLANTS AND TOLD MR SMITH THAT GM IS A CORPORATION THAT LIES STEALS AND CHEATS SINCE THEN MR SMITH HAS SCORED POINTS WITH MR YOKICH BY TAKING A PRAGMATIC ONEPROBLEMATATIME APPROACH MR YOKICH PROTESTED FOR EXAMPLE THAT GM WAS SHIPPING WORK TO NONUAW OPERATIONS IN VIOLATION OF ITS CONTRACT MR SMITH'S PURCHASING CHIEF RESPONDED WITH AN INNOVATIVE EFFORT TO HAVE INDEPENDENT SUPPLIERS EMPLOY LAIDOFF GM WORKERS THE RESULT A PRONOUNCED THAW IN UAWGM RELATIONS MR SMITH LAST MONTH INVITED MR YOKICH TO JOIN HIM IN ADDRESSING A GROUP OF DEALERS A FIRST FOR GM IN TURN MR SMITH SPOKE TO THE GATHERING OF LOCAL LEADERS IN DETROIT THERE HE OFFERED A CANDID ASSESSMENT OF GM'S COMPETITIVE PROBLEMS WALL STREET TOO IS SEEING MORE OPENNESS FROM GM ON FINANCIAL MATTERS FOR THE FIRST TIME THE COMPANY IS REPORTING SEPARATE RESULTS FOR ITS NORTH AMERICAN VEHICLE OPERATIONS WHICH LOST 35 BILLION LAST YEAR MR SMITH AND MR WAGONER THE CHIEF FINANCIAL OFFICER ALSO ARE PUTTING GM'S ACCOUNTING POLICIES ON A MORE CONSERVATIVE FOOTING EVEN THOUGH DOING SO WIDENED THE COMPANY'S FOURTHQUARTER LOSS IN THE PROCESS MR SMITH HAS REVERSED A SERIES OF MOVES BY ROGER SMITH THAT INCREASED REPORTED PROFITS DURING THE LATE 1980S AT THE EXPENSE OF THE BALANCE SHEET THERE WAS CRITICISM OF US AS BEING TOO LIBERAL JACK SMITH SAYS IT DOESN'T DO ANY GOOD TO HAVE THAT REPUTATION THIS NONONSENSE APPROACH IS CHARACTERISTIC OF MR SMITH'S MANAGEMENT STYLE ASSOCIATES SAY IN HIS RECENT APPEARANCES MR SMITH HAS BEEN RELAXED AND GOODHUMORED BUT HE ISN'T READY TO CELEBRATE GM'S RECOVERY YET I DON'T WANT TO SEE US BRAGGING HE SAYS ABOUT THINGS WE SHOULDN'T BE BRAGGING ABOUT 9302190164 930219 TECHNOLOGY & HEALTH CLINTON ATTACK DISAPPOINTS' MERCK'S CHIEF BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERCK & CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER P ROY VAGELOS WHO SUPPORTED BILL CLINTON FOR PRESIDENT SAID HE IS DISAPPOINTED AND PAINED BY THE PRESIDENT'S ATTACK ON THE DRUG INDUSTRY'S PRICING POLICIES EXPLAINING AN UNUSUAL MERCK ADVERTISEMENT IN THE FORM OF AN OPEN LETTER FROM DR VAGELOS THAT APPEARS TODAY IN FIVE LARGE NEWSPAPERS THE MERCK CHAIRMAN INDICATED THAT HE FELT BETRAYED BY THE NEW PRESIDENT HOWEVER DR VAGELOS DIDN'T USE THAT EXACT WORD I HAD A FEELING THAT I HAD A GOOD RELATIONSHIP WITH PRESIDENT BILL CLINTON DR VAGELOS SAID IN A TELEPHONE INTERVIEW NOTING THAT HE HAD DISCUSSED DRUG PRICING AND OTHER ISSUES WITH MR CLINTON DURING THE PRESIDENTIAL CAMPAIGN AND THE ECONOMIC SUMMIT IN LITTLE ROCK ARK IN DECEMBER DR VAGELOS SAID HE THOUGHT FROM THOSE MEETINGS THAT THE PRESIDENT HAD A PRETTY GOOD UNDERSTANDING THAT MERCK HAD BEEN HOLDING DOWN DRUGPRICE INCREASES TO THE RATE OF INFLATION SINCE 1990 A POLICY THAT HAS SINCE BEEN ADOPTED BY SEVEN OTHER DRUG MAKERS DR VAGELOS SAID HIS OPEN LETTER WAS A DIRECT RESPONSE TO CHARGES BY PRESIDENT CLINTON LAST WEEK THAT THE PRICES OF VACCINES WHICH ARE MADE BY MERCK AND THREE OTHER COMPANIES WERE SHOCKING AND THAT COMPANIES HAD MADE PROFITS AT THE EXPENSE OF CHILDREN IN THE INTERVIEW DR VAGELOS RESPECTED AS A DRUGINDUSTRY LEADER CALLED THE PRESIDENT'S STATEMENTS A TREMENDOUS SLAM ON THE INDUSTRY IT WAS AWFUL DR VAGELOS SAID IN THE OPEN LETTER WHICH APPEARS AS THREEQUARTER PAGE ADS IN THE NEW YORK TIMES USA TODAY THE WASHINGTON POST THE PHILADELPHIA INQUIRER AND THE WALL STREET JOURNAL DR VAGELOS SAID THE HEALTHCARE COSTS PROBLEM WAS COMPLEX AND COULDN'T BE SOLVED BY A QUICK FIX WE NEED A SEARCH FOR TRUTH DR VAGELOS'S LETTER SAID NOT SCAPEGOATS IN THE LETTER DR VAGELOS SAID THE FEDERAL GOVERNMENT'S OWN REPORTS HAVE SHOWN THAT FAILURE TO VACCINATE MANY POOR CHILDREN WAS THE RESULT OF A SHORTAGE OF HEALTH PROGRAMS NOT OF HIGH VACCINE PRICES MOREOVER HE SAID MERCK'S AVERAGE WEIGHTED PRICES OF ALL ITS DRUGS ROSE BY ONLY 27 IN 1992 AND A SENATE REPORT LAST WEEK SAYING MERCK'S DRUG PRICES ROSE BY A HIGHER PERCENTAGE WAS MISLEADING AND UNFAIR DR VAGELOS'S LETTER IS THE FIRST OF WHAT IS EXPECTED TO BE MANY PUBLIC RESPONSES BY THE BESIEGED PHARMACEUTICAL INDUSTRY TO WHITE HOUSE PRESSURE ON PRICING ADMINISTRATION AIDES HAVE SAID PRESIDENT CLINTON HAS TARGETED THE DRUG INDUSTRY AS PART OF A PLAN TO HOLD DOWN HEALTHCARE COSTS THE AIDES HAVE SUGGESTED THAT THE ADMINISTRATION WANTS THE INDUSTRY TO RESTRAIN PRICES WHICH JUMPED BY TWO AND THREE TIMES THE RATE OF INFLATION DURING THE 1980S DR VAGELOS SAID HE WAS SORRY THAT NOT ALL DRUG MAKERS HAD FOLLOWED MERCK IN PLEDGING TO HOLD DRUGPRICE RISES TO THE RATE OF INFLATION BUT HE SAID HE WAS RESTRAINED FROM DISCUSSING PRICE POLICIES WITH OTHER COMPANIES FOR FEAR OF VIOLATING FEDERAL ANTITRUST LAWS INDEED DR VAGELOS SAID HE WAS DEFENDING ONLY MERCK AND WASN'T SPEAKING FOR THE INDUSTRY BUT HE SAID HE HOPED HIS LETTER WOULD LEAD TO MEETINGS WITH ADMINISTRATION OFFICIALS HE SAID HE WOULD BE HAPPY TO MEET WITH DONNA SHALALA THE SECRETARY OF HEALTH AND HUMAN SERVICES OR FIRST LADY HILLARY RODHAM CLINTON WHO HEADS A HEALTHREFORM TASK FORCE DR VAGELOS SAID HE BELIEVED THAT PUBLIC CONCERN OVER DRUG PRICES WAS BECAUSE DRUG COSTS AREN'T COVERED BY MANY INSURANCE PLANS WHILE INSURANCE GENERALLY PAYS FOR MUCH HIGHERCOST CARE FROM DOCTORS AND HOSPITALS HE SAID HE SUPPORTED GOVERNMENT EFFORTS TO REQUIRE THAT ALL HEALTH PLANS PAY FOR PRESCRIPTION MEDICINE SEVERAL OTHER DRUGCOMPANY EXECUTIVES PRIVATELY SAID THEY EXPECT TO RESPOND TO THE ADMINISTRATION'S PLANS TO REDUCE INDUSTRY TAX BREAKS WEDNESDAY THE CHIEF EXECUTIVES OF PFIZER INC HOFFMANNLA ROCHE INC AND AMERICAN HOME PRODUCTS CORP MET WITH SEN BILL BRADLEY D NJ TO PRESS THEIR POINTS A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID THAT THE INDUSTRY WAS TAKEN ABACK BY THE STRIDENT TONE OF THE PRESIDENT'S COMMENTS LAST WEEK AND THAT THE TRADE GROUP SPENT MUCH OF THIS WEEK SPEAKING WITH MANY PEOPLE INSIDE AND OUTSIDE THE ADMINISTRATION TO SET THE RECORD STRAIGHT 9302190163 930219 AT&T TO REACH OUT AND TOUCH CLIENTS MORE INDIVIDUALLY THE I PLAN' FOR LONG DISTANCE FOR RESIDENTIAL CONSUMERS SEEKS TO RIVAL SPRINT MCI BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL LOSING GROUND TO RIVALS IN THE CONSUMER MARKET AMERICAN TELEPHONE & TELEGRAPH CO SAID THAT STARTING NEXT MONTH IT WILL RADICALLY ALTER THE WAY IT SELLS ITS LONGDISTANCE SERVICE TO RESIDENTIAL CLIENTS RATHER THAN OFFER JUST BLANKET DISCOUNT PLANS THE COMPANY SAID IT WOULD OFFER SPECIAL REWARDS TO LOYAL CUSTOMERS AND COMPETITIVE PRICING BASED ON EACH CUSTOMER'S USAGE AT&T SAID ITS TELEMARKETERS WOULD MAKE THESE OFFERS IN PERIODIC CALLS TO CUSTOMERS MUCH AS AT&T NOW SELLS SERVICE TO BIG COMPANIES WE'RE LOOKING TO SIMPLIFY THINGS TO CUSTOMIZE A CALLING PLAN TO EACH INDIVIDUAL SAID VICTOR PELSON AT&T GROUP EXECUTIVE AND COMMUNICATIONS SERVICES CHIEF AND WE WANT TO BUILD A PROGRAM THAT HEAVILY EMPHASIZES CUSTOMER RETENTION CURRENTLY AT&T'S 80 MILLION CONSUMER CUSTOMERS EITHER USE ITS BASIC RATES OR ORDER SERVICE FROM THE COMPANY'S REACH OUT AMERICA FAMILY OF DISCOUNT PLANS AND MANY JUMP TO RIVAL PLANS TO SAVE MONEY AT&T PLANNED TO UNVEIL ITS NEW SALES PROGRAM LAST NIGHT IN A NATIONAL TELEVISION ADVERTISING CAMPAIGN WITH A NEWSPAPER MAGAZINE AND RADIO BLITZ TO FOLLOW THE VOLUME DISCOUNT PORTIONS OF THE PLAN TAKE EFFECT MARCH 3 BY WHICH TIME AT&T TELEMARKETERS AND DIRECT MAILERS WILL HAVE BEGUN CONTACTING CUSTOMERS THE COMPANY SAID BUT AT&T'S NEW PERSONALIZED SALES APPROACH CALLED THE I PLAN WITH THE I STANDING FOR INDIVIDUAL MAY TURN OFF SOME CONSUMERS WHO DON'T PERCEIVE AN IMPROVED SERVICE PAYOFF REGULATORS AND LAWMAKERS HAVE BEEN BOMBARDED BY ANNOYED CONSUMERS TO LIMIT PHONE SOLICITATIONS AT&T NEEDED TO DO SOMETHING BOLD ITS LONGDISTANCE REVENUE ACTUALLY SLIPPED IN THE FOURTH QUARTER WHILE MCI COMMUNICATIONS CORP AND SPRINT CORP POSTED STRONG GROWTH AT&T WANTS TO BUILD LOYALTY BY GETTING AS MANY HOOKS INTO YOU AS POSSIBLE SAID GREGORY SAWERS AN ANALYST AT SANFORD BERNSTEIN & CO THE NEW OFFERS WHICH WILL COME ONE AT A TIME THROUGHOUT THE YEAR WILL MAKE IT HARDER FOR A CUSTOMER TO LEAVE AT&T AND THE HARDER IT IS TO LEAVE THE HIGHER THE COST TO MCI AND SPRINT TO LURE CUSTOMERS AWAY MCI AND SPRINT HAVE DRAWN AT&T'S BLOOD WITH THEIR RESPECTIVE CONSUMER DISCOUNT PROGRAMS FRIENDS & FAMILY AND THE MOST MCI SAID IT NOW HAS MORE THAN 10 MILLION FRIENDS & FAMILY CUSTOMERS SPRINT WHILE NOT DIVULGING NUMBERS HAS SEEN ITS LONGDISTANCE TRAFFIC VOLUME STEADILY INCREASE SINCE LAST SUMMER INDICATING THAT IT'S BEGINNING TO WIN MARKET SHARE AT AT&T'S EXPENSE HO HUM SAID ANGELA DUNLAP MCI'S VICE PRESIDENT OF ADVERTISING AND COMMUNICATIONS OF AT&T'S PLAN THE I PLAN LOOKS MORE LIKE THE INVISIBLE PLAN TO US AND IT'S RESTRICTIVE SINCE IT'S AIMED AT PEOPLE WHO SPEND OVER 30 A MONTH FRIENDS & FAMILY IS NOT RESTRICTIVE SPRINT CONSUMER SERVICES GROUP PRESIDENT DAVE SCHMEIG CALLED AT&T'S PLAN A LONG WAKEUP CALL AS IT FOLLOWED BY NEARLY TWO YEARS SPRINT'S PRIORITY LONGDISTANCE PLAN SPRINT REGULARLY REVIEWS PRIORITY CUSTOMER ACCOUNTS AND WILL AUTOMATICALLY PUT THE CUSTOMER INTO A LOWERPRICED SERVICE IF THE CLIENT QUALIFIES THE SERVICE ALSO OFFERS SPRINT CUSTOMERS FREE GIFTS SUCH AS COFFEE POTS AND SEA CRUISES BASED ON THEIR VOLUME OF USAGE STILL MCI AND SPRINT MAY FIND IT HARD TO MATCH AT&T'S NEW SALES INITIATIVE WITHOUT INCURRING HUGE NEW SALES EXPENSES AT&T WHICH SPENDS MORE THAN 1 BILLION A YEAR MARKETING ITS SERVICE HAS A GIANT TELEMARKETING ORGANIZATION THAT MANY EXPERTS REGARD AS ONE OF THE MOST EFFICIENT AND RESPONSIVE TO CUSTOMERS NOW THOSE AT&T PHONE MARKETERS WILL BE CALLING CONSUMERS REGULARLY THE MARKETERS WOULD OFFER SPECIAL DEALS ON A SLEW OF AT&T PRODUCTS AND SERVICES INCLUDING FREE MONTHS OF LONGDISTANCE SERVICE AND FREE TRYOUTS OF OTHER AT&T PRODUCTS SUCH AS THE EASYREACH 700 NUMBER THAT AT&T WILL ASSIGN A CUSTOMER SO THAT THE CUSTOMER CAN BE REACHED ANYWHERE THERE'S A PHONE FUTURE OFFERS MAY INCLUDE DISCOUNT FEES FOR USING THE AT&T UNIVERSAL CREDIT CARD AND EVEN AT&T CELLULAR PHONES IN ADDITION UNDER A NEW VOLUME PLAN FILED RECENTLY WITH THE FEDERAL COMMUNICATIONS COMMISSION AT&T WOULD GIVE CONSUMERS SPENDING MORE THAN 30 A MONTH ON DOMESTIC DIRECTDIALED CALLS 15 OFF AT&T'S STANDARD RATES AND A 25 PRICE CUT ON CALLS TO A SINGLE AREA CODE THE PLAN CARRIES NO FLAT MONTHLY FEE OR SIGNUP CHARGE AT&T SAID AT&T'S ANNOUNCEMENT SENT MCI AND SPRINT SHARES TUMBLING IN LATE NATIONAL OVERTHECOUNTER TRADING MCI SHARES FELL 125 TO BE QUOTED AT 37875 SPRINT WAS QUOTED AT 2675 DOWN 50 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING WHILE AT&T ROSE 375 CENTS TO BE QUOTED AT 52625 9302190162 930219 STREET SEES ITS POCKETBOOK TAKING BIG HIT BY MICHAEL SICONOLFI AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WALL STREET BROKERAGE FIRMS FRESH FROM TWO YEARS OF RECORD PROFITS AND PAYCHECKS GROUSE THAT THEY WILL BEAR THE BRUNT OF PRESIDENT CLINTON'S BROAD NEW ECONOMIC PLAN THE NATION'S SECURITIES FIRMS COULD FACE A HIGHER TAX BITE ON EXECUTIVE PAY AND ON GAINS IN THEIR SECURITIES INVENTORIES AMONG OTHER THINGS BROKERAGE EXECUTIVES COMPLAIN THAT THE PLAN'S BROAD INCOMETAX BOOSTS ALSO COULD CRIMP THE ABILITY OF ITS CLIENTS TO BUY STOCKS AND BONDS ALTHOUGH THERE WILL BE SOME PORTFOLIO RESHUFFLING INITIALLY THAT COULD GENERATE COMMISSIONS AND WALL STREET IS UPSET THAT THE PLAN DOESN'T CONTAIN ANY MAJOR SAVINGS INCENTIVES FOR INVESTORS SUCH AS REVIVING THE FULL TAX ADVANTAGES OF INDIVIDUAL RETIREMENT ACCOUNTS THE MAJOR DISADVANTAGE FOR THE STREET IS THAT THERE ARE NO INCENTIVES IN THERE TO SAVE AND INVEST SAYS JEFFREY SCHAEFER DIRECTOR OF RESEARCH AT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP ADD TO THAT THE DEEPER INCOMETAX INCREASES HE SAYS AND THAT'S WHERE THE CRUNCH IS OCCURRING YESTERDAY CLINTON ADMINISTRATION OFFICIALS SOUGHT TO MOLLIFY WALL STREET'S CONCERNS ROBERT E RUBIN A FORMER COCHAIRMAN OF GOLDMAN SACHS & CO AND PRESIDENT CLINTON'S ECONOMICAFFAIRS CZAR TRIED TO ASSUAGE THE FEARS OF ABOUT 40 FINANCIALSERVICES' EXECUTIVES AT A LUNCH YESTERDAY AT THE NEW YORK STOCK EXCHANGE AMONG THE TOPICS WAS ONE OF THE PRESIDENT'S PLANS TO ELIMINATE THE CORPORATE TAX DEDUCTIONS FOR EXCESSIVE PAYTHAT'S EXECUTIVE COMPENSATION ABOVE 1 MILLION EXECUTIVES FRET THAT SUCH A PLAN COULD COST SOME BIG BROKERAGE FIRMS AS MUCH AS 100 MILLION A YEAR IN LOST TAX DEDUCTIONS MR RUBIN TOOK PAINS TO PLAY DOWN THE EFFECT OF THE PLAN ACCORDING TO PEOPLE WHO ATTENDED YESTERDAY'S MEETING IN THE PLUSH INNER SANCTUM OF THE EXCHANGE'S BIG BOARD ROOM MR RUBIN DESCRIBED THE PLAN ONLY AS A WORK IN PROGRESS THESE PEOPLE SAID HE COULDN'T BE REACHED TO COMMENT MEANWHILE SOME BROKERAGE EXECUTIVES ARE TAKING COMFORT IN A LITTLENOTICED LOOPHOLE OF THE PLAN COMPANIES COULD KEEP THEIR DEDUCTIONS AS LONG AS THEY LINK EXECUTIVES' PAY TO PERFORMANCE ACCORDING TO PEOPLE FAMILIAR WITH THE PRESIDENT'S PROPOSAL AMONG OTHER THINGS THE PLAN COULD LEAD BROKERAGE FIRMS TO DOLE OUT MORE EXECUTIVE PAY IN PERFORMANCETRIGGERED STOCK OPTIONS EXECUTIVEBENEFITS CONSULTANTS SAY THERE IS AT LEAST ONE SILVER LINING A BOOST TO THE MUNICIPAL BOND BUSINESS AS INVESTORS FLOCK TO SHELTER AS MUCH INCOME FROM TAXES AS POSSIBLE WALL STREET'S MUNI DIVISIONS ARE OFTEN AMONG THEIR MOST PROFITABLE BECAUSE OF THE WIDE SPREADS BETWEEN BID AND ASK PRICES FOR BONDS AND THE RELATIVELY LOW RISK OF THE SECURITIES THE CLINTON PLAN IS A VERY BIG BOOST FOR THE MUNI BOND BUSINESS SAYS RICHARD CICCARONE SENIOR VICE PRESIDENT OF KEMPER SECURITIES INC OF CHICAGO NOT ONLY ARE PERSONAL INCOME TAXES GOING TO BE INCREASED RAISING THE ATTRACTIVENESS OF TAXEXEMPT INCOME BUT THE PAYOUT FOR INFRASTRUCTURE FINANCING MEANS MORE BOND ISSUES AND THAT HELPS THE DEALERS PERHAPS THE MOST CONTROVERSIAL MEASURE OF THE ECONOMIC PLAN WOULD BE A HIGHER PORTFOLIO TAX UNDER THE PLAN BROKERAGE FIRMS WOULD BE REQUIRED TO VALUE THEIR SECURITIES PORTFOLIOS ACCORDING TO MARKET PRICES AT THE END OF EACH YEAR RATHER THAN PEGGING THE VALUE TO PURCHASE PRICES MR CLINTON'S PLAN PROJECTS THAT REVENUE FROM TAXING UNREALIZED GAINS WOULD BE 457 MILLION IN 1994 AND 109 BILLION IN 1995 A FEW BROKERAGE FIRMS ALREADY VALUE THEIR SECURITIES THIS WAY BUT THE PLAN COULD FORCE MANY OF THE OTHERS TO TRIM THEIR SECURITIES INVENTORIES TO AVOID THE RISK OF FAT TAXES HAVING SMALLER INVENTORIES COULD CUT INTO PROFITS SOME EXECUTIVES SAY THAT'S BECAUSE BIG INVENTORIES ALLOW BROKERAGE FIRMS AMONG OTHER THINGS TO SELL SECURITIES TO CUSTOMERS ON DEMAND WITHOUT HAVING TO GO OUT IN THE MARKET TO BUY THEM AND SOME BROKERAGE OFFICIALS CONCEDE THAT THEIR FIRMS MAY BE FORCED TO HEDGE VARIOUS SECURITIES POSITIONS JUST TO OFFSET BIG UNREALIZED GAINS ON THEIR PORTFOLIO MORE ONEROUS SAYS THE INDUSTRY TRADE GROUP'S MR SCHAEFER THE PLAN MAY NOT ALLOW SECURITIES FIRMS TO TAKE TAX ADVANTAGES IF THEY FACE UNREALIZED LOSSES THAT WAS A PROVISION IN A SIMILAR PROPOSAL FLOATED A YEAR AGO BY FORMER PRESIDENT BUSH TO INCREASE WALL STREET'S TAX BILL THAT PROPOSAL CRUMBLED IN CONGRESS AMID WAILS OF PROTEST FROM BIG WALL STREET FIRMS ANY SUCH A PROVISION WOULD TAKE IT FROM THE REALM OF BAD POLICY TO THE ABSURD SAYS STEPHEN ROBERT CHAIRMAN OF OPPENHEIMER & CO OUR SYSTEM IN GENERAL HAS NOT TAXED UNREALIZED GAINS MR ROBERT SAYS WHEN YOU DO THAT YOU'RE REALLY FORCING PEOPLE TO BE MORE SHORTTERM ORIENTED AND REALIZE GAINS THEY OTHERWISE WOULD HOLD IN ORDER TO HAVE CASH TO PAY TAXES AB BUZZY KRONGARD CHAIRMAN OF ALEX BROWN & SONS INC SAYS IF THE PLAN PASSES AS PROPOSED HIS FIRM COULD END UP SLIGHTLY REDUCING ITS INVENTORIES OF BONDS AND OVERTHECOUNTER STOCKS BUT SO FAR THE FIRM HASN'T TAKEN ANY ACTION TO SELL SECURITIES OR TO CANCEL OUT SOME OF ITS POSITIONS IN SECURITIES WITH UNREALIZED GAINS WITH CONGRESS STILL TO DEBATE THE PLAN THEY'LL BE TIME TO WIGGLE HE SAYS PRESIDENT CLINTON HAS MADE NO SECRET OF THE FACT THAT HE'S GOING AFTER THE FAT CATS AND WALL STREET'S ALWAYS BEEN VIEWED THAT WAY MR KRONGARD SAYS AFTER THE ENERGY INDUSTRY HE ADDS THE BROKERAGE BUSINESS IS THE ONE MOST HARD HIT BY THE PLAN WE'RE AN EASY TARGET MEANWHILE MUTUALFUND EXECUTIVES PROFESS NOT TO BE CONCERNED THAT HIGHER TAXES MIGHT CUT BACK ON THE CURRENTLY HUGE FLOW OF CASH INTO MUTUAL FUNDS ROGER SERVISON A MANAGING DIRECTOR AT FIDELITY INVESTMENTS THE NATION'S BIGGEST FUND GROUP BELIEVES THAT HIGHER TAXES WOULD HAVE A SOMEWHAT NEGATIVE IMPACT ON THE SAVINGS RATE IN THE SHORT RUN BUT HE EXPECTS WELLHEELED PEOPLE TO SLASH THEIR SPENDING MORE THAN THEIR SAVINGS BECAUSE OF WORRIES ABOUT SAVING MONEY FOR COLLEGE OR RETIREMENT MR SERVISON SAYS INVESTORS MIGHT DOWNSIZE FROM A BMW TO A TOYOTA TO SAVE MONEY AS OPPOSED TO CUTTING BACK ON THEIR SAVINGS ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE 9302190161 930219 MEXICAN STOCKS LOOK TO NAFTA FOR DIRECTION LATIN AMERICAN SPECIALIST SAYS PACT RATIFICATION WOULD BOOST RETURNS BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND MEXICAN STOCKS OFFER A POTENTIAL RETURN OF MORE THAN 35 OVER THE NEXT 12 MONTHS IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS RATIFIED JORGE O MARISCAL A GOLDMAN SACHS LATIN AMERICAN SPECIALIST TOLD SECURITIES ANALYSTS ON THE OTHER HAND MEXICAN STOCKS MAY DROP ABOUT 20 IF NAFTA ISN'T APPROVED OR IS POSTPONED FOR A LENGTHY PERIOD MR MARISCAL SAID IN AN INTERVIEW AFTER THE ANALYST PRESENTATION MR MARISCAL A GOLDMAN SACHS VICE PRESIDENT IS MANAGER OF THE FIRM'S LATIN AMERICAN EQUITY RESEARCH GROUP HE SAID THE MEXICAN STOCK MARKET IS HIGHLY EVENTDRIVEN AND THE MARKET OVER THE LAST YEAR HAS BOUNCED AROUND MAINLY ON THE PERCEIVED OUTLOOK FOR NAFTA THE MARKET HAS DECLINED MORE THAN 10 SO FAR IN 1993 LARGELY BECAUSE OF CONCERNS THAT NAFTA WON'T BE RATIFIED HE SAID HOWEVER HE SAID GOLDMAN SACHS ESTIMATES THAT THERE IS AN 85 TO 90 CHANCE THAT NAFTA WILL BE RATIFIED NAFTA IS EXTREMELY IMPORTANT TO MEXICO BECAUSE IT WOULD BE A CERTIFICATE OF BELONGING TO A VERY PRIVILEGED CLUB MR MARISCAL SAID THAT MEMBERSHIP WOULD SHARPLY REDUCE THE PERCEIVED RISK OF INVESTING IN MEXICO HE SAID WHICH WOULD BOOST MEXICAN STOCK PRICES MR MARISCAL RECOMMENDS PURCHASE OF STOCK IN MEXICAN RETAILERS CEMENT AND BUILDING MATERIALS PRODUCERS TRANSPORTATION CONCERNS AND MANUFACTURERS OF CONSUMER PRODUCTS HE'S ESPECIALLY HIGH ON MEXICAN COMPANIES IN JOINT VENTURES WITH US CONCERNS THAT HAVE SHARED ACCESS TO THE LATEST TECHNOLOGY A US INVESTOR WITH 500000 IN STOCKS SHOULD CONSIDER INVESTING 10 TO 15 OF THE MONEY IN LATIN AMERICAN STOCKS MR MARISCAL SAID HE SUGGESTED HALF OF THE LATIN AMERICAN INVESTMENT SHOULD BE IN MEXICO 25 IN BRAZIL 15 IN ARGENTINA AND THE REMAINDER IN CHILE WHILE HE RECOMMENDED PURCHASE OF INDIVIDUAL MEXICAN STOCKS HE SAID MUTUAL FUNDS OFFER A BETTER INVESTMENT APPROACH FOR BRAZIL AND MOST OTHER LATIN AMERICAN COUNTRIES LARGESCALE US INVESTMENT IN MEXICAN STOCKS IS A RELATIVELY NEW DEVELOPMENT MR MARISCAL SAID HE ESTIMATED THAT FOREIGN INVESTORS OWN NEARLY 30 BILLION OF MEXICAN STOCKS APPROXIMATELY 20 OF THE MARKET VALUE OF MEXICO'S PUBLICLY TRADED STOCKS AND 95 OF THAT INVESTMENT IS FROM THE US HE SAID BY YEAR END US INVESTORS WILL BE ABLE TO TRADE THROUGH ADRS IN ABOUT 100 LATIN AMERICAN COMPANIES MOST OF THEM MEXICAN HE SAID MOST MEXICAN BUSINESSES WILL BENEFIT FROM NAFTA MR MARISCAL SAID HE SAID THE FREE TRADE AGREEMENT WOULD MAKE IT EASIER FOR MEXICO TO ATTRACT US CAPITAL SPEEDING THE COUNTRY'S ECONOMIC GROWTH HOWEVER MEMBERSHIP IN A NORTH AMERICAN FREE TRADE GROUP WOULD BE A GUARANTEE THAT THE COUNTRY WOULDN'T RETURN TO NATIONALIZATION OF BANKS OR OTHER BUSINESSES IMPORT RESTRICTIONS AND OTHER PROTECTIONIST POLICIES HE SAID ONCE FOREIGN INVESTORS HAVE THAT ASSURANCE HE SAID THE FLOOD OF FOREIGN INVESTMENT WILL BOTH LOWER INTEREST RATES IN MEXICO AND ADD PRODUCTIVE FACILITIES IF NAFTA IS REJECTED OR POSTPONED FOR A LENGTHY PERIOD HOWEVER THE MEXICAN GOVERNMENT WILL BE FORCED TO PUSH INTEREST RATES EVEN HIGHER THAN THEY ALREADY ARE TO BRING IN ENOUGH CAPITAL TO CORRECT A BALANCE OF PAYMENTS DEFICIT HE SAID RISING INTEREST RATES WOULD TEMPORARILY HALT THE GROWTH OF THE MEXICAN ECONOMY MR MARISCAL SAID IN 1992 IMPORTS OF 48 BILLION FAR EXCEEDED THE NATION'S 28 BILLION OF EXPORTS HE SAID THE MEXICAN GOVERNMENT MUST PAY FOREIGN INVESTORS ABOUT 19 ON SHORTTERM SECURITIES TO ATTRACT THE CAPITAL REQUIRED TO MAKE UP THE DIFFERENCE HE SAID MR MARISCAL SAID THAT EVEN IF NAFTA ISN'T APPROVED MEXICO WOULD CONTINUE ITS ECONOMIC REFORMS GROWTH WOULD RESUME EVENTUALLY AND MEXICAN STOCKS WOULD REBOUND HOWEVER PURCHASE OF MEXICAN SECURITIES NOW CLEARLY IS A BET ON NAFTA HE SAID 9302190160 930219 INTERNATIONAL BRIEF KLEINWORT BENSON GROUP PLC BRITISH FIRM'S PRETAX PROFIT SHOWED 66 RISE LAST YEAR BRITISH INVESTMENT BANK KLEINWORT BENSON GROUP PLC REPORTED A BETTERTHANEXPECTED 66 JUMP IN PRETAX PROFIT IN 1992 AS NET BADDEBT CHARGES FELL TO 7 MILLION 101 MILLION FROM 39 MILLION IN 1991 KLEINWORT BENSON SAID IT HAS BENEFITED FROM THE MORE FAVORABLE CONDITIONS IN FINANCIAL MARKETS PREVAILING IN THE LAST QUARTER OF 1992 WHICH HAVE CONTINUED INTO 1993 PRETAX PROFIT ROSE TO 463 MILLION FROM 279 MILLION KLEINWORT BENSON SAID CHAIRMAN DAVID PEAKE WILL RETIRE AFTER THE BANK'S ANNUAL GENERAL MEETING APRIL 28 MR PEAKE WILL REMAIN ON THE BOARD IN A NONEXECUTIVE CAPACITY HE WILL BE SUCCEEDED AS EXECUTIVE CHAIRMAN BY LORD ROCKLEY THE CURRENT VICE CHAIRMAN 9302190159 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT BUSINESS PLAN STARTING EARLY URBAN TEENAGERS SEE ENTREPRENEURSHIP AS A WAY OUT OF POVERTY WITHOUT RELYING ON SOMEONE ELSE FOR A JOB BY BARBARA MARSH CHICAGO THREE YEARS AGO HIGHSCHOOL FRESHMAN EMERY YOUNG WAS THE TARGET OF TWO RADICALLY DIFFERENT RECRUITING EFFORTS SCHOOL OFFICIALS SEEKING STUDENTS FOR A NEW ENTREPRENEURSHIP CLASS AND STREET GANGS SEEKING NEW MEMBERS AT HIS MOTHER'S URGING SHE THREATENED MY LIFE MR YOUNG RECALLS HE DITCHED THE GANGS AND SIGNED UP FOR THE CLASS NOW AN 18YEAROLD SENIOR HE RUNS A STUDENTOWNED SCHOOLSUPPLIES BUSINESS THAT EVOLVED FROM THE CLASS HE PLANS TO GO TO COLLEGE AND EVENTUALLY RUN HIS OWN BUSINESS AND HE ALREADY SEES HIMSELF AS A ROLE MODEL FOR OTHER INNERCITY YOUTHS MR YOUNG EXEMPLIFIES THE RISING INTEREST IN ENTREPRENEURSHIP AMONG URBAN TEENAGERS ACROSS THE NATION THESE TEENAGERS OFTEN SURROUNDED BY POVERTY AND DRUGS UNEMPLOYMENT AND DESPAIR SEE BUSINESS OWNERSHIP AS A WAY TO MAKE MONEY AND HELP THEIR COMMUNITIES MOST IMPORTANT THOUGH IS THAT THEY SEE IT AS A WAY TO MOVE UP WITHOUT RELYING ON SOMEONE ELSE FOR A JOB IN THE PAST TWO YEARS A GROWING NUMBER OF URBAN MINORITY TEENAGERS HAVE ATTENDED MEETINGS OF THE FUTURE BUSINESS LEADERS OF AMERICA A WASHINGTON DC ORGANIZATION OF 300000 HIGHSCHOOL AND COLLEGE STUDENTS THE GROUP TEACHES LEADERSHIP AND BUSINESS TECHNIQUES AT ITS CONFERENCES THESE YOUNG PEOPLE SAY THEY ARE LOOKING FOR AN OPPORTUNITY FOR EXPERIENCE IN ENTREPRENUERIAL SKILLS AND FOR AN OPPORTUNITY TO MAKE SOME MONEY LEGALLY SAYS EDWARD MILLER THE ORGANIZATION'S PRESIDENT A CASE IN POINT IS JAMES NASH A 14YEAROLD MILWAUKEE BOY WHO STARTED A CLEANUP BUSINESS ME MYSELF & I INC IN 1990 I ALWAYS PUT MY COMMUNITY FIRST HE SAYS MOST OF HIS CUSTOMERS ARE BLACK RESIDENTS AND HE CUTS PRICES FOR THOSE WHO ARE ELDERLY OR ON WELFARE HE SAYS THAT HE IS SETTING AN EXAMPLE FOR YOUNGER BLACK CHILDREN NOT TO DEPEND ON OTHER PEOPLE FOR WHAT WE NEED TO DO OURSELVES SIMILARLY THE NATIONAL FOUNDATION FOR TEACHING ENTREPRENEURSHIP A NONPROFIT GROUP IN NEW YORK SAYS IT HAS HELPED DISADVANTAGED MINORITY STUDENTS START 400 BUSINESSES IN THE PAST FIVE YEARS ABOUT ONEFOURTH OF THE STUDENTS SELL FOOD PRIMARILY CANDY AND BAKED GOODS OTHER BUSINESSES HAVE INCLUDED A DELIVERY SERVICE AN ELDERCARE SERVICE AND A REPAIR SERVICE FOR REMOTECONTROL TOY CARS THE AVERAGE ENTERPRISE REAPS SALES OF ABOUT 80 TO 90 A WEEK AND LASTS FOR SEVERAL MONTHS FOUNDATION OFFICIALS SAY OTHER NONPROFIT AGENCIES ALONG WITH SCHOOLS AND COMMUNITY GROUPS ARE RUSHING TO OFFER ENTREPRENEURIALTRAINING PROGRAMS FOR POOR MINORITY YOUTHS REDONNA RODGERS EXECUTIVE DIRECTOR OF THE NONPROFIT CENTER FOR TEACHING ENTREPRENEURSHIP IN MILWAUKEE HAS TAUGHT BUSINESS BASICS TO ABOUT 100 LOCAL TEENAGERS SINCE THE CENTER OPENED IN 1991 MS RODGERS SEES THEIR ATTRACTION TO ENTREPRENEURSHIP AS PART OF THE GROWING INTEREST IN SELFRELIANCE AMONG POOR BLACKS PEOPLE ARE FED UP WAITING FOR EVERYONE FROM THE GOVERNMENT ON DOWN TO THE PRIVATE SECTOR TO HAVE THE ANSWER SHE SAYS THE SCHOOLBASED BUSINESS RUN BY MR YOUNG PROVIDES A VIVID ILLUSTRATION OF THE BENEFITS AND FRUSTRATIONS THAT THESE YOUNG ENTREPRENEURS FACE IN THEIR INNERCITY VENTURES SCHOLASTIC SHOP A SCHOOLSUPPLIES STORE IN FLOWER VOCATIONAL HIGH SCHOOL HAS GIVEN 27 STUDENTS A TASTE OF THE CHALLENGES INVOLVED IN STARTING AND OWNING A BUSINESS AND IT HAS FORCED THEM TO GRAPPLE WITH EMOTIONAL PRESSURES AND A REAL TRAGEDY THAT WOULD TRY EVEN THE MOST SEASONED ENTREPRENEUR SCHOLASTIC SHOP'S STUDENT OWNERS THOUGH HAVE GOTTEN THROUGH IT ALL AND ARE EVEN TURNING A PROFIT THE STORE EARNED 1356 ON SALES OF 9491 DURING ITS FIRST YEAR WHICH ENDED IN MIDOCTOBER THE STUDENTS USED SOME OF THEIR EARNINGS TO PAY OFF A 500 SEEDMONEY LOAN FROM A COMMUNITY ORGANIZATION MOREOVER THEIR ENTHUSIASM FOR ENTREPRENEURSHIP IS SPREADING OTHER FLOWER VOCATIONAL STUDENTS HAVE OPENED A STUDENT CREDIT UNION AND A WORDPROCESSING SERVICE WITHIN THE HIGH SCHOOL A FASHION BOUTIQUE FLOWER SHOP AND CAFE ARE PLANNED FOR THIS YEAR SUCH A BURST OF BUSINESS ACTIVITY MIGHT SEEM SURPRISING IN THE POOR WEST GARFIELD NEIGHBORHOOD WHERE FLOWER VOCATIONAL'S MAINLY BLACK STUDENTS LIVE THE AREA'S ONCETHRIVING RETAIL STRIP NEVER RECOVERED AFTER IT WAS SET ABLAZE DURING THE 1968 RIOTS SPARKED BY MARTIN LUTHER KING'S ASSASSINATION THE FEW REMAINING BUSINESSES INTERSPERSED BETWEEN LONG ROWS OF SHUTTERED SHOPS NOW ARE LIMITED TO THE OCCASIONAL FOOD AND LIQUOR STORE GAS STATION OR SUBMARINESANDWICH SHOP MR YOUNG AND FELLOW CLASSMATES IN THE SMALL BUSINESS OWNERSHIP COURSE CAME UP WITH THE IDEA FOR A SCHOOLSUPPLIES STORE AFTER NOTICING THAT MANY STUDENTS KEPT SHOWING UP WITHOUT SUPPLIES THE NEAREST SHOPPING CENTER IS MORE THAN A MILE AWAY THE CLASS'S SURVEY OF STUDENTS FOUND 90 WOULD PATRONIZE A SCHOOL STORE FLOWER VOCATIONAL PROMISED TO PROVIDE SPACE AND UTILITIES BUT THE WOULDBE ENTREPRENEURS LACKED CAPITAL TO BUY INVENTORY THEY HAWKED TAFFY APPLES TEDDY BEARS AND SANTA CLAUS HATS WITHIN THEIR SCHOOL THEY ALSO USED THEIR BUDDING BUSINESS SAVVY TO MAKE A PITCH FOR OUTSIDE HELP THE COMMUNITY WORKSHOP ON ECONOMIC DEVELOPMENT A LOCAL NONPROFIT GROUP CAME THROUGH WITH A 500 LOAN THE WORKSHOP ALSO LENT A STAFF MEMBER TO TRAIN THE CLASS IN WRITING A BUSINESS PLAN BUT SHORTLY BEFORE THE STORE OPENED IN FALL 1991 THE CLASS RAN INTO TWO MAJOR SETBACKS RICHARD DATTILO THEIR TEACHER AND ADVISER TRANSFERRED TO ANOTHER SCHOOL STUDENTS WORRIED THAT THEIR STORE WOULD NEVER OPEN WHEN WE WERE WITH MR DATTILO WE WERE LIKE DIAMONDS IN THE ROUGH SAYS MR YOUNG HE PICKED US UP AND WE SHINED THE CLASS HAD JUST BEGUN WORKING WITH ANOTHER TEACHER DAMON ANDERSON WHEN TERRENCE IVY A WITTY REBELLIOUS CLASSMATE TRAINED TO RUN THE STORE'S CASH REGISTER WAS MURDERED STUDENTS SUSPECT THAT HIS SLAYING WAS GANGRELATED THE REMAINING STUDENTS GRIEFSTRICKEN OVER THE TRAGEDY LOST MUCH OF THEIR ENTHUSIASM FOR WORKING IN THE STORE RECALLS MR ANDERSON TERRENCE IVY WAS LIKE THE SPIRIT OF EVERYBODY SAYS TOINETTE GORDON THE STORE'S 17YEAROLD GENERAL MANAGER MR ANDERSON WHO WAS ALSO THE SLAIN YOUTH'S BASKETBALL COACH SAYS THAT HE WAS A NATURAL ENTREPRENEUR WHO PUSHED TO MAKE SURE THE SCHOOL WOULD GRANT THE STUDENTS A REAL STAKE IN THE PROFITS THE CLASS'S INTEREST REVIVED AS IMMEDIATE BUSINESS PROBLEMS DEMANDED THEIR ATTENTION ONE PROBLEM A LIMITED PRODUCT MIX WHEN THE STORE OPENED IN OCTOBER 1991 IT SOLD ONLY A FEW SCHOOL SUPPLIES SALES TOTALED ONLY 25 TO 30 A DAY HALF OF WHAT THE STUDENTS HAD PROJECTED AFTER TWO WEEKS THE CLASS DECIDED TO OFFER CANDY AND GUM TOO THE RESULT DAILY SALES NEARLY DOUBLED TO ABOUT 50 SALES ROSE TO 70 WHEN THEY STARTED SELLING LOCAL NEWSPAPERS FINALLY THEY ADDED POTATO CHIPS AND DAILY SALES JUMPED TO ABOUT 90 BUT OFFERING POTATO CHIPS TRIGGERED A PRICE WAR WITH THE SCHOOL LUNCHROOM THE LUNCHROOM SOLD FRITOS AND PLAIN POTATO CHIPS FOR 45 CENTS A BAG THE STUDENTSTORE OPERATORS INITIALLY AVOIDED HEADTOHEAD COMPETITION BY SELLING OTHER CHIP FLAVORS CHEESE SOUR CREAM AND ONIONS BARBECUE AND SALT AND SOUR AND CHARGING 35 CENTS A BAG THEN THE LUNCHROOM COPIED SOME OF THE SCHOOL STORE'S BRANDS AND CUT ITS PRICE TO 25 CENTS THE STORE'S DAILY SALES FELL TO 60 THE STUDENTS DECIDED TO MATCH THE LUNCHROOM PRICE THE LOWEST PRICE THEY COULD CHARGE AND STILL MAKE A PROFIT AND SALES SHOT BACK UP TO ABOUT 90 A DAY WITH THIS SUCCESS CAME RENEWED ENTHUSIASM I LIKE THE COMPETITION SAYS MS GORDON THE STORE MANAGER WITH SALES NOW HOLDING STEADY THE SENIORS LOOK FORWARD TO THEIR FINAL REWARD IN THE SPRING A PROFIT DISTRIBUTION SCHOOL ADMINISTRATORS ARE STILL TRYING TO FIGURE OUT HOW TO HAND OUT THE MONEY WITHOUT RUNNING AFOUL OF LAWS RESTRICTING PROFITMAKING VENTURES WITHIN A PUBLIC SCHOOL ONE POSSIBLE LOOPHOLE OFFER THE OWNERS ACHIEVEMENT AWARDS IN THE FORM OF SAVINGS BONDS MS MARSH IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S CHICAGO BUREAU 9302190158 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP PRETTY PICTURE INTEREST IN BLACK ARTISTS GROWS DRAWING ATTENTION FROM HIGHPROFILE DEALERS AND COLLECTORS BY TERI AGINS EIGHT YEARS AGO EDWARD ROBERTSON BEGAN SELLING POSTERS ON THE SIDEWALKS OF WASHINGTON DC TODAY HIS COMPANY THINGS GRAPHIC & FINE ARTS INC SPECIALIZES IN POSTERS AND LIMITEDEDITION PRINTS OF ABOUT 35 BLACK ARTISTS AND HAS ANNUAL SALES IN THE MILLIONS HE SAYS MR ROBERTSON'S SUCCESS MIRRORS A GROWING APPRECIATION OF THE AESTHETIC AND COMMERCIAL MERITS OF THE WORKS OF BLACK ARTISTS BOTH HISTORIC AND CONTEMPORARY THE MARKET IS STILL NOT FULLY DEVELOPED WITH PRICES VOLATILE AND DEMAND SOMETIMES THIN BUT THE WORKS ARE INCREASINGLY BECOMING PART OF TODAY'S MAINSTREAM ART WORLD ENTREPRENEURS ARE TAPPING INTO A VIBRANT MARKET FOR REPRODUCTIONS AND MAJOR MUSEUMS ARE FOR THE FIRST TIME SHOWCASING ORIGINAL PAINTINGS AND PRINTS OF BLACK ARTISTS THERE'S AN INTERNATIONAL ART FORCE THAT IS TAKING OVER AS AFRICANAMERICAN ART AND PRIMITIVE WORKS FROM THE CARIBBEAN HAVE BEEN BREAKING THROUGH IN LONDON AND PARIS AND ALL OVER SAYS SAMELLA LEWIS A PROFESSOR EMERITUS OF ART HISTORY AT SCRIPPS COLLEGE ONE OF THE CLAREMONT COLLEGES IN CLAREMONT CALIF BLACK ART SHE SAYS IS SIGNIFICANT AND SOPHISTICATED SOCIALLY AND POLITICALLY IT MAKES STATEMENTS AND PEOPLE WANT TO BUY IT THAT RECOGNITION IS LONG OVERDUE COLLECTORS SAY HISTORICALLY BLACK ARTISTS WORKED AS LABORERS OR TRADESMEN WHILE MOONLIGHTING IN ANONYMITY THEY OFTEN PAINTED SOCIALLY ACCEPTABLE EUROPEAN THEMES RATHER THAN DRAWING ON THEIR OWN CULTURAL ROOTS BUT SOME FOUND PATRONS AMONG LIBERAL PHILANTHROPISTS WHO SUPPORTED AND COLLECTED THEIR WORK AND ENCOURAGED MORE SELFEXPRESSION INTEREST IN BLACK ARTISTS BEGAN TO GATHER STEAM IN THE LATE 1970S WHEN A NUMBER OF MUSEUM SHOWS FEATURED BLACK ARTISTS DURING AMERICA'S BICENTENNIAL CELEBRATION AT THE SAME TIME SUCH BLACK SCHOOLS AS HOWARD UNIVERSITY HAMPTON UNIVERSITY AND FISK UNIVERSITY BEGAN ISSUING CATALOGS OF THEIR EXTENSIVE ART COLLECTIONS COMEDIAN BILL COSBY HELPED PAVE THE WAY FOR EVEN BROADER ACCEPTANCE WHEN HE DECIDED TO MAKE TELEVISION'S POPULAR HUXTABLE FAMILY CONNOISSEURS OF AFRICANAMERICAN ART THE APPRECIATION OF BLACK ART BY THE UPPERMIDDLECLASS HUXTABLES AWAKENED MILLIONS OF VIEWERS TO A CREATIVE TRADITION LONG IGNORED BY ESTABLISHED COLLECTORS AND DEALERS THE BOOM IN BLACK ART HAS COME ABOUT NOT IN THE MARKET OF GALLERIES OR THE AUCTIONS AT SOTHEBY'S AND CHRISTIE'S BUT FROM ORDINARY BLACK PEOPLE SAYS DAVID DRISKELL AN ARTHISTORY PROFESSOR AT THE UNIVERSITY OF MARYLAND AND ADVISER TO SEVERAL INDIVIDUAL ART BUYERS INCLUDING MR COSBY AMONG HIS OTHER CLIENTS IS A WASHINGTON DC POLICEMAN WHO HAS COLLECTED 100 ORIGINAL WORKS AND A STAGE HAND AT THE KENNEDY CENTER WHOSE COLLECTION INCLUDES WORK BY THE NOTED 18TH CENTURY PORTRAIT PAINTER JOSHUA JOHNSON THE STAGE HAND SPENDS EVERY PENNY HE HAS BUYING WORKS BY BLACK ARTISTS MR DRISKELL SAYS WHITE COLLECTORS ARE BUYING AS WELL AT RECENT SHOWS AT THE NEWARK MUSEUM IN NEWARK NJ AND AT THE EQUITABLE GALLERY IN NEW YORK DAVE AND REBA WILLIAMS OF NEW YORK SHOWED 150 WORKS FROM THEIR EXTENSIVE COLLECTION OF PRINTS FROM BLACK ARTISTS FROM THE 1930S AND 1940S FOR THE NEXT THREE YEARS THE WILLIAMS'S PRINTS WILL BE ON TOUR IN MUSEUMS IN THE US AND EUROPE UNDER THE SPONSORSHIP OF THE AMERICAN FEDERATION OF ART A NONPROFIT GROUP IN NEW YORK THE POPULARITY OF BLACK ARTISTS WAS FURTHER FUELED IN THE 1980S AS SEVERAL WHITE PATRONS OF 19TH AND 20THCENTURY BLACK ART DONATED WORKS TO THE NATIONAL MUSEUM OF AMERICAN ART AT THE SMITHSONIAN INSTITUTION THE HARMON FOUNDATION ONE OF THE FOREMOST OF THESE BENEFACTORS OF BLACK ARTISTS FROM THE 1920S THROUGH THE 1960S GAVE THE SMITHSONIAN MORE THAN 2000 WORKS AMONG TOP MUSEUMS THAT HAVE BEGUN TO BUY AND EXHIBIT BLACK ART IS NEW YORK'S METROPOLITAN MUSEUM OF ART WHICH CURRENTLY HAS ABOUT 100 WORKS BY BLACK ARTISTS IN ITS PERMANENT COLLECTION MOST OF THEM ACQUIRED SINCE 1975 MEANWHILE SINCE THE LATE 1970S A NUMBER OF BLACKOWNED GALLERIES SPECIALIZING IN BLACK ARTISTS HAVE OPENED IN BIG CITIES JUNE KELLY GALLERY AND KENKELABA GALLERY IN NEW YORK ISOBEL NEAL GALLERY IN CHICAGO AND BOMANI GALLERY IN SAN FRANCISCO IN 1992 THE SIXYEAR OLD ISOBEL NEAL GALLERY HAD ITS BEST YEAR EVER LAST YEAR WE SOLD QUITE A FEW PIECES OVER 10000 SAYS CHARLES FABRO THE GALLERY'S DIRECTOR MR FABRO SAYS THAT THE AVERAGE PIECE SOLD FOR BETWEEN 3000 AND 4000 IN 1992 ABOUT TRIPLE THE AVERAGE PRICE IN 1991 BUT WHILE PRICES HAVE RISEN IN RECENT YEARS MOST SPECIALISTS AGREE THAT THEY ARE STILL RELATIVELY LOW COMPARED WITH THE WORKS OF TRADITIONAL MAINSTREAM ARTISTS GENERATIONS OF EXCLUSION FROM THE BESTKNOWN GALLERIES AND AUCTION HOUSES HAVE HELD DOWN PRICES AND PRESTIGE AMERICA'S FOREMOST LIVING BLACK ARTIST IS JACOB LAWRENCE WHOSE PAINTINGS USUALLY SELL FOR NO MORE THAN 75000 ACCORDING TO MR DRISKELL WORKS BY COLLAGIST AND CUBIST PAINTER ROMARE BEARDEN DOUBLED IN PRICE AFTER HIS DEATH IN 1988 BUT THEY STILL TYPICALLY SELL IN THE 40000TO60000 RANGE THE BIG MONEY IS YET TO BE MADE SAYS MS LEWIS OF SCRIPPS THAT WILL HAPPEN SHE BELIEVES ONCE CRITICS ARE MORE BROADLY TRAINED AND EXPOSED BECAUSE COLLECTORS DON'T BUY WHAT THE CRITICS DON'T APPROVE OF BUT THERE ARE EXCEPTIONS JOSHUA JOHNSON A SELFTAUGHT BALTIMORE ARTIST IS RECOGNIZED AS THE FIRST PROFESSIONAL BLACK AMERICAN PORTRAIT PAINTER HIS 18THCENTURY OIL PAINTING EMMA VAN NAME DEPICTING A WHITE GIRL IN A PINK DRESS SOLD FOR 660000 IN A SOTHEBY'S AUCTION IN 1988 NOTED 19THCENTURY ARTISTS INCLUDE LANDSCAPE PAINTER EDWARD MITCHELL BANNISTER SCULPTOR EDMONIA LEWIS AND PAINTER HENRY OSSAWA TANNER MR TANNER'S PORTRAIT OF A MAN AND CHILD SEATED AT A TABLE THANKFUL POOR WAS PART OF THE LIVINGROOM SET OF THE COSBY SHOW MR COSBY PURCHASED THE PAINTING AT A 1981 AUCTION FOR 275000 ALSO CURRENTLY IN VOGUE IS OUTSIDER ART WHICH REFERS TO SOCIALLY NONCOMFORMIST WORK PRODUCED BY ECCENTRICS MENTAL PATIENTS AND OTHER SOCIAL OUTSIDERS AMONG THE MOST POPULAR IS BILL TRAYLOR WHO DIED IN THE LATE 1940S MR TRAYLOR AN ELDERLY HOMELESS MAN SHOWED HIS PAINTINGS ON THE STREET EIGHT YEARS AGO A TRAYLOR COULD BE BOUGHT FOR ABOUT 200 RECENTLY ONE OF HIS PAINTINGS WAS AUCTIONED FOR 20000 MR TRAYLOR IS CONSIDERED THE SHINING ORNAMENT OF OUTSIDER ART SAYS NANCY DRUCKMAN HEAD OF THE AMERICAN FOLK ART DEPARTMENT AT SOTHEBY'S LAST FALL THE HEIRS OF MR TRAYLOR FILED A LAWSUIT IN A MANHATTAN STATE COURT ACCUSING CHARLES SHANNON A WHITE COLLECTOR WHO ONCE BEFRIENDED MR TRAYLOR AND HISRCHL & ADLER MODERN A MANHATTAN GALLERY OF ILLEGALLY PROFITING FROM ARTWORK THAT SHOULD HAVE BELONGED TO MR TRAYLOR'S HEIRS IN TERMS OF DEMAND THE HOTTEST SEGMENT OF THE MARKET IS FOR INEXPENSIVE LITHOGRAPHS AND POSTERS THAT DEPICT ALL ASPECTS OF BLACK CULTURE THE MARKET BARELY EXISTED 10 YEARS AGO BUT NOW THANKS TO HEAVY PROMOTION FROM BLACK ENTREPRENEURS SUCH AS MR ROBERTSON THE MARKET GENERATES AN ESTIMATED 20 MILLION IN SALES A YEAR POSITIVE BLACK IMAGES INC A DALLAS BLACKOWNED FIRM CONTRACTS WITH A DOZEN ARTISTS TO PRODUCE WORKS CUSTOMIZED TO APPEAL TO SPECIFIC BLACK AUDIENCES INCLUDING CHURCHES FRATERNITIES AND SORORITIES AND SCHOOLS MOST OF THESE PAINTINGS AND PRINTS ARE REPRODUCED AND MARKETED AS POSTERS STILL DESPITE THE INCREASED VISIBILITY BLACK ART FACES OBSTACLES BEFORE IT IS FULLY ABSORBED INTO THE MAINSTREAM ART COMMUNITY FOR ONE THING ORIGINAL BLACK ART IS DIFFICULT TO PRICE THE APPRAISAL SYSTEM IS BASED ON AN OLDBOY NETWORK TIES WITH ART SCHOOLS AND ARTISTS WHO HAVE SOME KIND OF SENIORITY AND TRACK RECORD SAYS MARY LANIER A NEW YORK ART CONSULTANT TO PRIVATE COLLECTORS AND CORPORATIONS BLACKS SHE SUGGESTS HAVEN'T BEEN PART OF THAT NETWORK MOREOVER THE MARKET IS THIN RELATIVELY FEW WORKS HAVE CHANGED HANDS AT AUCTION SO PRICES ARE FLUID AND UNTESTED BECAUSE THE MARKET IS NEW ESPECIALLY FOR CONTEMPORARY ARTISTS THERE ARE NO YARDSTICKS SAYS CHERYL SUTTON A GARY IND DEALER WE ARE MAKING UP THE RULES AS WE GO ALONG HOWARDENA PINDELL A PROFESSOR OF ART AT THE STATE UNIVERSITY OF NEW YORK AT STONY BROOK DID A STATISTICAL SURVEY ON MUSEUM EXHIBITIONS AND NEW YORK CITY GALLERIES AND FOUND THAT BETWEEN 1980 AND 1987 NEARLY ALL OF THE MOST PRESTIGIOUS GALLERIES REPRESENTED ONLY WHITE ARTISTS IN 1987 SHE PRESENTED HER REPORT TO THE AGENDAS FOR SURVIVAL A CONFERENCE FOCUSING ON NONWHITE CULTURES IN THE US SPONSORED BY HUNTER COLLEGE IN NEW YORK MS PINDELL TOLD THE CONFERENCE THAT BLACKS AND OTHER MINORITY ARTISTS ARE WITH A VERY FEW EXCEPTIONS SYSTEMATICALLY EXCLUDED ONLY ARTISTS OF EUROPEAN DESCENT SHE SAID ARE CONSIDERED BY THE MAINSTREAM TO BE AMERICAN ARTISTS NOR DOES BLACK ART FIT INTO AUCTION HOUSES' CONVENTIONAL THEMATIC CATEGORIES WHILE SOTHEBY'S AND CHRISTIE'S PLACE AFRICAN ART IN THEIR TRIBAL ART DIVISIONS NEITHER HAS A DIVISION FOR ART BY BLACK AMERICANS INROADS AGAINST EXCLUSION ARE BEING MADE A BILL IS CURRENTLY PENDING IN CONGRESS TO AUTHORIZE A NEW NATIONAL AFRICAN AMERICAN MUSEUM AT THE SMITHSONIAN IN WASHINGTON DC THE COLLEGE ART ASSOCIATION A NONPROFIT TRADE GROUP IN NEW YORK WILL SPONSOR A FELLOWSHIP PROGRAM NEXT FALL FOR ARTISTS AND ART HISTORIANS PURSUING DOCTORAL AND PROFESSIONAL DEGREES THE ASSOCIATION HOPES TO ENCOURAGE MINORITIES TO PURSUE CAREERS IN THE VISUAL ARTS FOR THE FIRST TIME THE UNITED STATES INFORMATION AGENCY RECENTLY SENT FIVE BLACK ARTISTS TO REPRESENT THE US AT THE DAKAR BIENNALE A MAJOR INTERNATIONAL ART FESTIVAL IN DAKAR SENEGAL ONE OF THE MAJOR GOALS OF THE WHITNEY MUSEUM OF AMERICAN ART IN NEW YORK IS TO ATTRACT MORE MINORITIES TO THE MUSEUM ACCORDING TO DAVID A ROSS THE MUSEUM'S DIRECTOR IN 1992 THE WHITNEY HELD MAJOR RETROSPECTIVES OF WORK BY EDWARD MITCHELL BANNISTER AND PRIMITIVE PAINTER WILLIAM H JOHNSON THE WHITNEY'S EXHIBIT OF JEANMICHEL BASQUIAT THE GRAFFITI ARTIST WHO WAS A PROTEGE OF ANDY WARHOL WAS ITS BESTATTENDED SHOW DURING THE FALL OF 1992 MR BASQUIAT WHO DIED IN 1988 WAS ONE OF THE HOTTEST ARTISTS IN NEW YORK DURING THE LATE 1980S HIS WORKS CONSISTENTLY COMMAND PRICES HIGHER THAN ANY BLACK ARTIST LIVING OR DEAD IN 1990 ONE PAINTING SOLD AT A PARIS AUCTION FOR 567000 MS AGINS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190157 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CASH CRUNCH HOW THE SURVEY WAS CONDUCTED LATE LAST YEAR AND EARLIER THIS YEAR THE ROPER ORGANIZATION CONDUCTED PHONE INTERVIEWS WITH 500 BLACK BUSINESS OWNERS THROUGHOUT THE CONTINENTAL US THE SAMPLE WAS RANDOMLY CHOSEN FROM THE SMALL BUSINESS ADMINISTRATION'S LIST OF BLACKOWNED BUSINESSES WITH ANNUAL REVENUE OF AT LEAST 100000 THE SBA'S LIST INCLUDES BUSINESSES WITH FEWER THAN 500 EMPLOYEES AND REVENUE OF UP TO 17 MILLION ACCORDING TO ROPER THE ODDS ARE 19 OUT OF 20 THAT IF THE SURVEY OF ENTREPRENEURS HAD BEEN EXPANDED TO INCLUDE THE ENTIRE SBA LIST OF BLACKOWNED BUSINESSES WITH ANNUAL REVENUE OF AT LEAST 100000 THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN FIVE PERCENTAGE POINTS IN EITHER DIRECTION 9302190156 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP MEDICAL MAVERICK JENNIFER DANIELS BUILT AN INNERCITY MEDICAL PRACTICE BY FOLLOWING A PERSONAL CREDO YOU'RE OUT THERE BY YOURSELF' BY FRED R BLEAKLEY BACK IN THE LATE 1980S A PAIR OF TICKETS TO THE ANNUAL DINNER DANCES OF SYRACUSE'S BIG HOSPITALS COST 400 A PRINCELY SUM FOR A YOUNG PHYSICIAN LIKE JENNIFER DANIELS BUT DR DANIELS JUST BACK FROM RUNNING MEDICAL CLINICS ON INDIAN RESERVATIONS IN THE WEST SCRAPED TOGETHER THE MONEY TO ATTEND SEVERAL OF THE EVENTS I LET THEM KNOW I WAS SPENDING MY LAST 10 CENTS FOR THE TICKETS RECALLS DR DANIELS AND I WANTED TO MEET ALL THE VIPS THAT SHE DID OFTEN THE ONLY BLACK PERSON IN ATTENDANCE SHE WAS ESCORTED FROM TABLE TO TABLE SAYING HI I'M DR DANIELS I WANT TO OPEN A FAMILY PRACTICE ON THE SOUTH SIDE THE CONNECTIONS THAT'S HOW I MET THE MAYOR SHE SAYS PAID OFF SHE BELIEVES THEY HELPED HER CUT THROUGH THE RED TAPE WHEN APPLYING FOR BUILDING PERMITS AND THE MAYOR'S LINKS TO THE BANKING COMMUNITY MAY HAVE OPENED SOME FINANCIAL DOORS SHE BELIEVES THE RESULT IS THAT DR DANIELS IS LIVING HER DREAM SHE RUNS HER OWN FAMILYHEALTH PRACTICE IN A POOR INNERCITY NEIGHBORHOOD IN SYRACUSE ON A PIECE OF LAND THAT WAS ONCE A VACANT LOT WHERE POLICE MET THEIR INFORMANTS IT'S PART OF THE NEIGHBORHOOD WHERE SHE GREW UP MOSTLY BLACK HEAVILY POPULATED AND WITHOUT ANY OTHER DOCTOR FOR MILES AROUND NOW NEARLY TWO YEARS OLD THE PRACTICE HAS BEEN MAKING MONEY SINCE ITS SIXTH WEEK IT HAS ENABLED DR DANIELS RECENTLY TO PAY BACK MORE THAN HALF OF THE 190000 LOAN USED FOR CONSTRUCTION OF HER MEDICAL BUILDING AND IT HAS MADE THE 35YEAROLD DOCTOR A ROLE MODEL IN THE CITY'S BLACK COMMUNITY DR DANIELS DIDN'T HAVE TO COME BACK TO SYRACUSE SHE WAS A SCHOLARSHIP HONORS STUDENT AT HARVARDRADCLIFFE COLLEGE AND POLISHED OFF A MASTERS DEGREE IN BUSINESS ADMINISTRATION AT THE WHARTON SCHOOL WHILE COMPLETING HER MEDICAL DEGREE AT THE UNIVERSITY OF PENNSLVANIA IN THE USUAL FOUR YEARS HER STINT AS MEDICAL DIRECTOR AT TWO INDIAN HEALTHSERVICE CLINICS IN THE WEST PAID OFF AN OBLIGATION FROM FEDERAL SCHOLARSHIPS THAT HAD GOTTEN HER THROUGH MEDICAL SCHOOL LIKE MOST SUCCESSFUL ENTREPRENEURS DR DANIELS CALLED ON A POWERFUL COMBINATION OF DRIVE INGENUITY AND OLDFASHIONED PARSIMONY BUT DR DANIELS IS ALSO CONVINCED THAT HER VENTURE WAS MADE ALL THE MORE DIFFICULT BY HER RACE AND THAT HER UNUSUAL DETERMINATION AND STUBBORNESS WERE NECESSARY TO OVERCOME THOSE HURDLES SYRACUSE'S BANKS FOR INSTANCE ARE NOT ACTIVE IN LENDING TO BUSINESSES IN THE BLACK COMMUNITY WHERE DR DANIELS WANTED TO PRACTICE THEY DON'T UNDERSTAND THE INNER CITY SO THEY AVOID LENDING THERE SAYS STEPHEN COGSWELL SENIOR ORGANIZER OF SYRACUSE UNITED NEIGHBORS A COALITION OF COMMUNITY GROUPS DR DANIELS HE SAYS BRIDGED THE GAP DESPITE BEING A BLACK WOMAN WHO HAD SOME NOVEL IDEAS FOR STARTING A BUSINESS IN A DEPRESSED COMMUNITY AMONG THE HURDLES THAT CONCERNED BANKERS MR COGSWELL SAYS THE HIGH COST OF CONSTRUCTING AN OFFICE BUILDING AND THE ECONOMIC DEMOGRAPHICS OF THE NEIGHBORHOOD PATIENTS MIGHT NEITHER HAVE THE CASH NOR THE INSURANCE COVERAGE TO PAY FOR DR DANIELS'S SERVICES STILL DR DANIELS SHOWED BANKERS THAT THE NEIGHBORHOOD'S FINANCIAL PROFILE WAS MUCH HIGHER THAN PERCEIVED AND MADE A CASE FOR GENERATING ENOUGH REVENUE TO COVER THE DEBT OBLIGATIONS I WAS CONVINCED THE BUSINESS WOULD WORK BY EMPHASIZING CASH PAYMENTS FROM PATIENTS AND ACCEPTING ONLY A HANDFUL OF INSURERS KNOWN FOR MORE COMPLETE COVERAGE SHE SAYS SHE'S A VERY GOOD BUSINESSWOMAN SAYS MR COGSWELL WHO NOTES THAT HER OFFICE BUILDING WAS COMPLETED AT ABOUT 54 PER SQUARE FOOT WHILE THE GOING RATE FOR NEW MEDICAL OFFICES IN OTHER PARTS OF THE CITY RANGED FROM 80 TO 150 PER SQUARE FOOT WHILE DR DANIELS GUESSES THAT THE SUPPORT OF THE MAYOR HELPED HER CASE WITH THE BANKS IT IS UNCLEAR WHAT MOTIVATED THEIR WILLINGNESS TO LEND A SPOKESMAN FOR KEY BANK WHICH HAD OFFERED TO FINANCE HER BUSINESS CITES A POLICY OF NOT COMMENTING ON CUSTOMER RELATIONSHIPS DR DANIELS HAD NOT EXPECTED TO ACHIEVE HER GOAL OF PRACTICING IN HER OLD NEIGHBORHOOD SO QUICKLY SHE INITIALLY CONSIDERED WORKING IN WEALTHIER COMMUNITIES OFFERING TO BUY PRACTICES THAT WERE FOR SALE OR TO RENT SPACE IN EXISTING OFFICES ALTHOUGH HER OFFERS WERE REJECTED SHE ASKED THE DOCTORS FOR ADVICE IN STARTING FROM SCRATCH THEIR ASSISTANCE SHE SAYS HELPED ME AVOID A LOT OF GRIEF WITH A QUESTIONNAIRE IN HAND SHE PEPPERED THEM WITH QUESTIONS ABOUT WHICH INSURANCE THEY ACCEPTED AND WHICH THEY DID NOT WHAT TO EXPECT IN THE WAY OF CASH FLOW AND OTHER OFFICE PROCEDURES DR DANIELS ALSO LEARNED FROM SOME OF THE DOCTORS THAT THE STATE AND FEDERAL MEDICAID PROGRAM OF INSURANCE FOR POOR PEOPLE CAN RETROACTIVELY SEEK REIMBURSEMENT OF PAID CLAIMS IF IT DETERMINES THAT PAYMENTS WERE MADE IN ERROR SO RATHER THAN TAKE ANY CHANCES AND DESPITE HER COMMITMENT TO HER COMMUNITY SHE HAS REFUSED TO ACCEPT PATIENTS WHOSE ONLY MEANS OF PAYMENT IS MEDICAID ALTHOUGH THAT PRACTICE HAS PROMPTED SOME CRITICISM DR DANIELS COUNTERS THAT SHE DIRECTS SUCH PATIENTS TO ONE OF TWO FREE CLINICS WHERE SHE IS A VOLUNTEER DESPITE ASSISTANCE FROM OTHERS DR DANIELS MAINTAINS THAT SHE HAS BUILT HER PRACTICE BY EXPECTING NOTHING HER ATTITUDE YOU'UT THERE BY YOURSELF THE PROBLEM WITH MANY BLACKS IS THEY THINK THE WORLD IS THERE TO HELP THEM INDEED AN EXPRESSION SHE REPEATS OFTEN IS I CAN ACCEPT THAT AS SHE DESCRIBES INCIDENTS THAT PRESENTED THEMSELVES INITIALLY AS OBSTACLES THAT HAD TO BE OVERCOME WHEN SHE DECIDED TO BUILD HER OWN MEDICAL OFFICE DR DANIELS SOUGHT OUT THE CORPORATESERVICES OFFICE OF COMMUNITY GENERAL HOSPITAL IN SYRACUSE ONE OF THE HOSPITALS WHOSE DINNER DANCES SHE ATTENDED BESIDES STANDING READY TO GIVE HER A WORKINGCAPITAL LOAN THE HOSPITAL DREW UP A BUDGET SHE COULD PRESENT TO BANKS FOR A CONSTRUCTION LOAN OF MORE THAN 200000 ON THE BUILDING THE BUSINESSSCHOOL TRAINING PAID OFF AS SOON AS SHE SAW THE PLAN WHICH SHOWED HER BUSINESS INSOLVENT IN THE SECOND YEAR TURNING TO THOMAS QUINN A VICE PRESIDENT OF THE HOSPITAL DR DANIELS NOTED THAT THE CASH BALANCE FROM THE FIRST YEAR HAD NOT BEEN CARRIED FORWARD AN OBSERVATION THAT SURPRISED MR QUINN AND AN ASSOCIATE BOTH OF WHOM HE ADDS HAD NEVER SEEN A DOCTOR GO THROUGH A CASHFLOW STATEMENT LIKE THAT I KNOW WHAT I WANT DR DANIELS SAYS THAT ATTITUDE SHE CONCEDES LEAVES LITTLE TOLERANCE FOR OTHERS WHO DISAGREE SHE WENT THROUGH FOUR BUILDERS THREE ACCOUNTANTS AND FOUR LAWYERS IN THE COURSE OF GETTING HER PRACTICE STARTED IN DEALING WITH BANKS DR DANIELS SAYS THAT SHE STARTED FROM THE PREMISE THAT I DON'T TELL THEM EVERYTHING THAT MEANT NOT LETTING THEM KNOW HOW MUCH MONEY SHE HAD SAVED FOR INSTANCE WITH KEY BANK AN ALBANY NY BANK WITH A LARGE PRESENCE IN SYRACUSE'S INNER CITY SHE STARTED OUT SAYING SHE WOULD PUT UP 5000 OF HER OWN MONEY TOWARD THE LOAN THE BANK EVENTUALLY GOT HER TO AGREE TO PUT UP 25000 BUT SHE NEVER LET ON THAT SHE HAD MORE THAN TWICE THAT AMOUNT AT HER DISPOSAL IF I HAD THEY WOULD HAVE REQUIRED ALL OR MOST OF IT SHE FIGURES A KEY BANK SPOKESMAN DECLINES TO COMMENT ON THE DEAL PROPOSED TO DR DANIELS IT INVOLVED BANK FINANCING FOR 50 OF A PROJECTED 256000 FINANCING SMALL BUSINESS ADMINISTRATION PARTICIPATION FOR 40 OF THE AMOUNT AND A 10 CONTRIBUTION FROM DR DANIELS BUT SHE BALKED AT PAYING THREE PERCENTAGE POINTS OVER THE PRIME RATE AND BEGAN SHOPPING THE DEAL AROUND ONBANK THE LARGEST BANK IN TOWN WAS EAGER TO DO THE CONSTRUCTION DEAL AT ONLY ONE POINT OVER PRIME AND WAS WILLING TO ROLL IN AN EQUIP MENTLOAN TO BOOT WHAT A RELIEF RECALLS DR DANIELS IT WAS FANTASTIC SHE WAS NAIVE HOWEVER IN BREAKING GROUND FOR HER BUILDING BEFORE SHE HAD THE BANK AND SBA MONEY IN HAND IT WAS MONTHS BEFORE THE LAND APPRAISAL AND ENVIRONMENTAL STUDY WERE DONE AND THE MONEY WAS ADVANCED IN THE INTERIM DR DANIELS DEPLETED THE REST OF HER 25000 IN SAVINGS TO PAY THE BUILDER AND WAS SCRAMBLING TO LINE UP LOANS FROM FRIENDS I LEARNED THAT WHEN A BANK GIVES YOU THE LETTER OF CREDIT IT DOESN'T MEAN THE MONEY WILL SHOW UP SHE SAYS TO KEEP MONEY COMING IN BEFORE HER PRACTICE BEGAN AND TO SUPPLEMENT HER INCOME SINCE THEN DR DANIELS WORKED PART TIME EACH WEEK AT A SERIES OF MEDICAL JOBS IN A CLINIC EMERGENCY ROOM AND PSYCHIATRIC HOSPITAL AROUND SYRACUSE SHOPPING FOR CABINETS CHAIRS AND THE LIKE HELPED LOWER EQUIPMENT COSTS BY TENS OF THOUSANDS OF DOLLARS SHE EVEN ECONOMIZED ON CHART HOLDERS FOR THE DOORS OF THE THREE EXAMINING ROOMS BY BUYING ONE AT LOCAL DISCOUNT STORE FOR 15 AND DIVIDING IT RATHER THAN PAYING 27 FOR EACH ONE FROM A MEDICAL CATALOG HER PENNY PINCHING IN CHOOSING THE LOWESTCOST CONTRACTOR BARGAINING FOR FIXTURES AND HANGING THE WALLPAPER HERSELF BROUGHT THE ORIGINAL ESTIMATE FOR LAND AND BUILDING DOWN FROM 300000 TO 211000 WITH HER 10 CONTRIBUTION THE ACTUAL LOAN AMOUNT TURNED OUT TO BE 190000 FOR EACH 1000 SAVED IT MEANT 960 PER MONTH LESS ON MY LOAN PAYMENTS DR DANIELS ESTIMATES THE MAYOR'S OFFICE WAS CALLED ON FOR HELP SEVERAL TIMES ESPECIALLY WHEN DR DANIELS BECAME FRUSTRATED WITH WHAT SEEMED LIKE NONSENSICAL BUREAUCRATIC DELAYS IN THE CONSTRUCTION PROCESS PEOPLE IN THE CITY WERE LEFT WITH SOME BRUISES SAYS JOHN SZCZECH HER BUILDER SHE KNEW WHAT SHE WANTED ADDS STEPHEN GROSS ASSISTANT DIRECTOR OF THE SYRACUSE OFFICE OF DEVELOPMENT DR DANIELS IS AN ASSET TO THE COMMUNITY BUT I WOULDN'T WANT TO WORK FOR HER SHE'D PROBABLY DRIVE YOU CRAZY IN BEING DEMANDING THE COMBINATION OF HER BUSINESSSCHOOL TRAINING WHICH PROBABLY GAVE ME A HEAD START OF 10 TO 15 YEARS SHE SAYS AND HELPFUL ADVICE FROM THE OTHER DOCTORS PLAYED A BIG PART IN MAKING HER PRACTICE A GOING CONCERN SO DID HER MOTHER LILLIAN WHO IS DR DANIELS'S RECEPTIONIST OFFICE MANAGER AND BOOKKEEPER AND IS PAID THE MINIMUM WAGE LILLIAN DANIELS ALSO SHARES HER HOUSE WITH HER DAUGHTER AND THREE GRANDCHILDREN FOR ONLY 300 A MONTH THAT HAS ENABLED DR DANIELS TO CONTINUE SAVING MONEY SO SHE CAN PLAN FOR HER NEW HOME SEND HER BROTHER TO LAW SCHOOL AND AWARD A 1000 SCHOLARSHIP TO THE STUDENT FROM HER OLD HIGH SCHOOL WHO WRITES THE BEST ESSAY ABOUT USING HIS OR HER EDUCATION TO MAKE SYRACUSE A BETTER PLACE TO LIVE DR DANIELS HASN'T MARRIED PROBABLY A GOOD IDEA SHE SAYS BECAUSE I COULDN'T FIND A PARTNER WHO WOULD LET ME DO WHATEVER I WANT AND I WOULDN'T BE ABLE TO HANDLE A MESSY DIVORCE DR DANIELS HAS THREE CHILDREN HOWEVER ALL CONCEIVED BY ARTIFICIAL INSEMINATION DR DANIELS SAYS SHE HAS SEVERAL FORMULAS FOR USUALLY GETTING WHAT SHE GOES AFTER WHEN FIRST DECIDING TO PURSUE SOMETHING SHE SAYS I THINK OF THREE OR FOUR OUTCOMES I CAN BE HAPPY WITH AND IF I CAN ONLY FIND ONE OUTCOME I WILL FIND SATISFACTORY I PASS IT UP ANOTHER PERSONAL RULE IS TO ONLY DO THINGS THAT I FEEL ARE VERY IMPORTANT AND IN AREAS WHERE NO ONE ELSE HAS ANY DESIRE TO DO THE SAME THING DR DANIELS SAYS CITING HER MEDICAL PRACTICE SHE NOTES THE LAND WAS INEXPENSIVE BECAUSE NOBODY ELSE WANTED IT I DON'T SPEND MONEY ADVERTISING BECAUSE I'M IN A PHYSICIANSHORTAGE AREA AND I DON'T WASTE TIME OR MONEY COMMUTING BECAUSE I LIVE THREE BLOCKS AWAY IN AN AREA WHERE NO OTHER DOCTOR WANTS TO LIVE PUSHING DR DANIELS ALL ALONG HAS BEEN A CONSTANT DRIVE TO EARN AND SAVE MONEY SHE SAYS AS AN 11YEAR OLD HER TEACHER PAID HER 10 CENTS TO GRADE SPELLING PAPERS SHE MADE CREEPY CRAWLERS TO SELL TO OTHER STUDENTS SHE OFTEN SKIPPED LUNCH TO SAVE THE 35 CENTS HER PARENTS HAD GIVEN HER A TRAIT SHE CARRIED OVER TO MEDICAL SCHOOL WHERE SHE WENT FOR MONTHS AT A TIME EATING ONLY EVERY OTHER DAY AND IN COLLEGE SHE COORDINATED 90 BARTENDERS FOR THE HARVARD STUDENT AGENCIES AND SOLD BOOKS DOORTODOOR DURING SUMMER VACATIONS SHE ATTRIBUTES HER SENSE OF ANXIETY TO HER LATE FATHER WHO TOLD HER AT THE AGE OF 10 THAT SHE SHOULD PLAN ON SUPPORTING HERSELF SOMEDAY A FEW YEARS LATER WHEN HER GRADES IN SCHOOL CONVINCED HIM I MIGHT AMOUNT TO SOMETHING DR DANIELS RECALLS HE STRESSED THAT THERE ARE NO JOBS OUT THERE UNLESS SOMEONE IS COMPELLED BY LAW TO HIRE A BLACK YOU'LL HAVE TO HIRE YOURSELF A POSTAL WORKER DR DANIELS'S FATHER DIDN'T WANT ANY OF HIS SIX CHILDREN STAYING AT HOME BEYOND THE AGE OF 18 WHEN JENNIFER WAS 11 SHE RECALLS HE TOLD US HE WAS ILL RATTLED OFF A SERIES OF BILLS AND OFFERED TO PAY 100 TO THE FIRST OF HIS SIX CHILDREN WHO LEFT HOME AND STAYED AWAY THAT SET ME INTO A PANIC DR DANIELS SAYS I GOT SERIOUSLY INTO BABYSITTING OF COURSE AT THE TIME HE WASN'T ILL HE WAS JUST A CHARACTER BUT HER FATHER ALSO WAS PIVOTAL IN HIS DAUGHTER'S CHOICE OF CAREERS HE HIT THE ROOF WHEN NINEYEAR OLD JENNIFER TOLD HIM SHE WANTED TO BE A NURSE SHE RECALLS HAVING ONCE HAD ASPIRATIONS TO BE A LAWYER IN HIS OWN LIFE HE REPRIMANDED HER WITH THE ADMONITION TO BE YOUR OWN BOSS AND BECOME A DOCTOR MR BLEAKLEY IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190155 930219 INTERNATIONAL INFAMOUS PRODUCT HAUNTS A CZECH FIRM MAKER OF TERRORISMLINKED EXPLOSIVE IS BEING PRIVATIZED BY AMY BARRETT SPECIAL TO THE WALL STREET JOURNAL SEMTIN CZECH REPUBLIC THE SHINY SQUARES OF RED BLACK AND ORANGE SEMTEX LOOK AND FEEL LIKE MODELING CLAY THE ODORLESS MATERIAL CAN BE DENTED SQUISHED AND STRETCHED YOU CAN THROW IT AGAINST THE WALL IF YOU WANT OFFERS MIROSLAV JANECEK DEPUTY DIRECTOR OF SYNTHESIA THE CZECH CHEMICAL COMPANY THAT PRODUCES SEMTEX A SOPHISTICATED EXPLOSIVE LINKED TO SOME OF THE WORLD'S BLOODIEST TERRORIST ACTS OF THE PAST DECADE THEY INCLUDE THE 1988 EXPLOSION OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND THAT KILLED 270 PEOPLE AND RECENT IRISH REPUBLICAN ARMY BOMBINGS OF CIVIL IAN AND MILITARY TARGETS IN BRITAIN AND NORTHERN IRELAND ON THE EVE OF ITS PRIVATIZATION THIS YEAR SYNTHESIA ALSO FINDS ITSELF A VICTIM OF SEMTEX WHILE OTHER MILITARY PRODUCERS OF THE COMMUNISTS' COLD WAR HARDWARE MEET WITH SYMPATHY AND ADVICE IN CONVERTING TO CIVILIAN PRODUCTION SYNTHESIA WHICH IS ALREADY PRIMARILY A CIVILIAN MANUFACTURER FEELS IT HAS BEEN UNFAIRLY BRANDED AN ACCOMPLICE TO TERRORISM THOUGH SYNTHESIA IS WIDELY KNOWN ONLY FOR SEMTEX IT IS ONE OF THE LARGEST AND MOST SUCCESSFUL CZECH CHEMICAL COMPANIES MANUFACTURING A THOUSAND PRODUCTS RANGING FROM FERTILIZERS TO PHARMACEUTICALS DYES PLASTICS AND EXPLOSIVES UNDERSTANDABLY THE COMPANY IS TRYING TO POLISH ITS IMAGE AMONG OTHER THINGS IT HAS MADE SEMTEX EASIER TO DETECT AND IS CLEANING UP POLLUTION IN AND AROUND ITS PLANTS RECENTLY IT INVITED JOURNALISTS IN TO TALK ABOUT THE PRIVATIZATION EFFORT PREPARED WITH THE HELP OF MILANBASED MERCHANT BANK EUROMOBILIARE THE PRIVATIZATION PLAN ENVISIONS JOINT VENTURES BETWEEN FOREIGN INVESTORS AND SYNTHESIA'S SEMIINDEPENDENT PRODUCTION SUBSIDIARIES THESE INCLUDE EXPLOSIA THE MAKER OF SEMTEX JIRI LUSTIG HEAD OF SYNTHESIA'S PRIVATIZATION DEPARTMENT SAYS MANY POTENTIAL JOINTVENTURE PARTNERS HAVE BEEN FRIGHTENED OFF BY THE PERCEIVED LIABILITY OF ASSOCIATING WITH SUCH AN INFAMOUS NAME SYNTHESIA MANAGERS SAY THE COMPANY NEVER KNEW WHO THE END USERS OF SEMTEX WERE THEY COULD SELL SEMTEX ONLY TO THE STATEOWNED MILITARY TRADING MONOPOLY OMNIPOL THROUGH OMNIPOL THE CZECHOSLOVAK COMMUNIST GOVERNMENT CHANNELED WEAPONS AND MILITARY TECHNOLOGY TO FRATERNAL SOCIALIST COUNTRIES AND MARXIST OR ANTIWESTERN REVOLUTIONARY MOVEMENTS IN THE THIRD WORLD AND THE MIDDLE EAST THE MOST NOTORIOUS SUCH DEAL WAS THE SALE OF 1000 TONS OF SEMTEX H TO LIBYA IN THE MID1980S SEMTEX H IS THE ODORLESS UNDETECTABLE AND HIGHLY CONCENTRATED VARIETY SPECIALLY DESIGNED FOR MILITARY USE ABOUT 10 OUNCES CAN BLAST A HOLE BIG ENOUGH TO MAKE AN AIRPLANE DECOMPRESS IN MIDAIR CRUMPLING LIKE A TIN CAN AT THE BARGAINBASEMENT PRICE OF 6 MILLION COL MOAMMAR GADHAFI'S DEFENSE MINISTRY GOT ENOUGH SEMTEX H TO BLOW UP 45 MILLION AIRLINERS LIKE PAN AM FLIGHT 103 BRITISH OFFICIALS ESTIMATE THAT THE IRA MAY POSSESS 10 TONS OF SEMTEX THANKS TO COL GADHAFI WHILE THE CZECHOSLOVAK COMMUNIST REGIME HAS DEPARTED FROM THE SCENE SYNTHESIA IS LEFT FIGHTING TO OVERCOME THE SINISTER REPUTATION SEMTEX HAS EARNED IT THE COMPANY HAS ALREADY DONE A LOT SPECIALISTS FROM ITS RESEARCH DEPARTMENT HAVE COOPERATED WITH INVESTIGATORS OF THE LOCKERBIE BOMBING AND SYNTHESIA IS THE FIRST MANUFACTURER IN THE WORLD TO MARK ITS EXPLOSIVE WORKING WITH BRITISH SCIENTISTS ITS EXPERTS DEVELOPED A SEMTEX FORMULA CONTAINING A CHEMICAL MARKER THAT SNIFFING DOGS AND SOME AIRPORT SECURITY DEVICES CAN DETECT SINCE JUNE 1991 THE PLANT HAS PRODUCED ONLY THE DETECTABLE VERSION OF SEMTEX SYNTHESIA HAS ALSO LAUNCHED A PROGRAM TO CONVERT TO CIVILIAN PRODUCTION RESEARCHER PETER MOSTAK IS PARTICULARLY PROUD OF ENEX A NEW FRICTIONREDUCING MOTOR OIL ADDITIVE MADE WITH DIAMOND DUST HIS DEPARTMENT IS NOW WORKING ON DEVELOPING SAFETY EQUIPMENT FOR COAL MINES AND ON ENVIRONMENTAL PROTECTION TECHNOLOGY OF COURSE PEOPLE HAVE BAD FEELINGS WHEN THEY LEARN THAT SOMEONE HAS USED THEIR PRODUCT FOR SUCH HORRIBLE ENDS MR MOSTAK SAYS BUT HE ADDS THAT PLANT MORALE HAS IMPROVED WITH THE POSITIVE RESULTS IN THE NEW APPLICATIONS WE'RE DISCOVERING NEW YOUNG MANAGEMENT HAS ALSO WORKED HARD TO BRING CHANGE UNDER THE COMMUNIST REGIME JAROSLAV VALOUSEK HEADED SYNTHESIA'S ENVIRONMENTAL DEPARTMENT AT A TIME WHEN THE CORNERSTONE OF STATE ENVIRONMENTAL POLICY WAS TO DENY THERE WERE ANY ENVIRONMENTAL PROBLEMS THE ACRID CHEMICAL STENCH AND THE THICK BROWN HAZE THAT ENVELOP THE PLANT AND ITS SURROUNDINGS FOR MILES BEAR BITTER WITNESS TO THE PAST POLICY OF NEGLECT NOW ONE OF MR VALOUSEK'S PRIMARY AIMS IS TO SECURE FOREIGN INVESTMENT TO COMPLETE CONSTRUCTION OF A 63 MILLION WATERTREATMENT PLANT TO TREAT NOT ONLY SYNTHESIA'S HUGE WASTEWATER OUTPUT BUT ALSO THAT OF NEARBY PARDUBICE A CITY OF MORE THAN 100000 FURTHER PLANS ARE AIMED AT CLEANING UP THE COMPANY'S POWER PLANT WHICH FURNISHES ALL THE HEAT ELECTRICITY AND STEAM FOR THE FACTORY AND OFFICES NOW BURNING LOWQUALITY BROWN COAL THE PLANT BELCHES COLUMNS OF FILTHY SMOKE SO THE COMPANY IS LOOKING FOR FURTHER INVESTMENT TO SWITCH TO CLEANERBURNING AND MOREEFFICIENT BLACK COAL WHICH COULD PRODUCE A SURPLUS THAT COULD BE SOLD TO HELP PAY FOR THE UPGRADE ADDING TO SYNTHESIA'S PROBLEMS ARE THE GENERAL DECLINE IN CHEMICAL PRICES AND THE LOSS OF MARKETS IN THE FORMER SOVIET UNION BUT SOME DIVISIONS HAVE BEGUN SUCCESSFUL RESTRUCTURING AND MOST HAVE BEEN THE SUBJECT OF INTEREST ON THE PART OF WESTERN INVESTORS THE DYES AND PIGMENTS DIVISION 60 DEPENDENT ON THE SOVIET MARKET TWO YEARS AGO NOW EXPORTS 60 TO WESTERN MARKETS IT AND THE PROFITABLE PHARMACEUTICAL AND ORGANICCHEMICALS DIVISION SELL TO BIG NAMES SUCH AS CIBAGEIGY AG OF SWITZERLAND AND BASF AG BAYER AG AND HOECHST AG OF GERMANY MARCO GALLARATI AN OFFICIAL OF EUROMOBILIARE SAYS THAT COMPARED WITH OTHER EASTERN EUROPEAN CONCERNS SYNTHESIA IS IN RELATIVELY GOOD FINANCIAL SHAPE WHILE IT LACKS SKILLED MIDDLE MANAGEMENT AND EXPERTISE IN MARKETING IT HAS EXCELLENT TECHNICAL RESOURCES AND TRADEUNION RELATIONS SEVERAL DIVISIONS HAVE EXPENSIVE HIGHTECH PLANTS BUT HAVE HAD TO HALT PRODUCTION BECAUSE OF POOR ECONOMIC CONDITIONS THESE INCLUDE A PLANT THAT MAKES TOPQUALITY PLASTIC LAMINATES FOR THE MORIBUND DOMESTIC ELECTRONICS INDUSTRY AND THE AGRICHEMICAL DIVISION WHICH IS BEING HURT BY A GENERAL CRISIS IN CZECH FARMING PERHAPS WORST OFF IS THE EXPLOSIVES DIVISION THAT PUT SYNTHESIA ON THE MAP IN THE FIRST PLACE IT IS UNPROFITABLE LIKE MOST EXPLOSIVES PRODUCERS WORLDWIDE THESE DAYS THE MANAGEMENT WOULD LIKE TO CLOSE IT DOWN BUT WILL PROBABLY HAVE TO CONTINUE TO PRODUCE UNDER CONTRACT FROM THE CZECH DEFENSE MINISTRY 9302190154 930219 MARKETING & MEDIA TURNER TURNS OFF CHECKOUT CHANNEL POSTS 32 DROP IN 4THQUARTER PROFIT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC RETREATING FROM PLANS TO EXPAND PROGRAMMING OUTSIDE THE HOME TOOK A 16 MILLION PRETAX CHARGE IN THE FOURTH QUARTER TO SCRAP ITS SUPERMARKET CHECKOUT CHANNEL AS A RESULT TURNER'S NET INCOME FELL 32 IN THE FOURTH QUARTER TO 297 MILLION OR 11 CENTS A SHARE FROM 434 MILLION OR 17 CENTS A SHARE IN THE SAME PERIOD LAST YEAR THAT WAS BELOW SOME ANALYSTS' EXPECTATIONS TURNER'S CLASS B SHARES LOST 875 CENTS ON THE NEWS CLOSING AT 2125 IN AMERICAN STOCK EXCHANGE TRADING THE TWOYEAR OLD CHECKOUT CHANNEL WAS THE FIRST OF WHAT TURNER HOPED WOULD BE A SLEW OF SOCALLED PRIVATE NETWORKS BUT THE COMPANY HAS SLOWED DOWN ITS PURSUIT OF OTHER POSSIBLE NETWORKS INCLUDING ONE FOR MCDONALD'S RESTAURANTS AND ANOTHER FOR HEALTH CLUBS SEVERAL PEOPLE CLOSE TO THE SITUATION SAID PAUL BECKHAM PRESIDENT OF TURNER PRIVATE NETWORKS INC SAID THE COMPANY IS STILL REVIEWING A TEST OF MCDTV FROM LAST SUMMER AND IS CONSIDERING TESTING A HEALTH CLUB NETWORK HE SAID THE COMPANY ISN'T EXPLORING ANY OTHER SUCH VENTURES BUT WILL CONTINUE TO EXPAND ITS REMAINING PRIVATE NETWORK THE YEAROLD AIRPORT CHANNEL WHICH IS SHOWN IN NINE AIRPORTS I DON'T THINK EVERY PROJECT IS GOING TO WORK MR BECKHAM SAID BUT THE IDEAL OF PRIVATE NETWORKS OF PLACEBASED MEDIA IS STILL THERE STILL SOME OF THE PROBLEMS CHECKOUT CHANNEL ENCOUNTERED EXIST WITH OTHER PRIVATE NETWORKS ADVERTISING EXECUTIVES SAID TURNER HAD TROUBLE FIGURING OUT HOW TO INSTALL SOUND MONITORS SO THEY COULD BE HEARD BY SHOPPERS WITHOUT DISTURBING CHECKOUT CLERKS SIMILAR ISSUES HAVE COME UP WITH OTHER VENTURES ADVERTISERS UNABLE TO GET RATINGS DATA FOR PRIVATE NETWORKS AND UNCONVINCED THAT EVERYBODY IN THE STORE WOULD BE IN LINE LONG ENOUGH TO WATCH THEIR COMMERCIALS INSISTED ON RATES BASED ON SOME FRACTION OF THE NUMBER OF SHOPPERS NOT THE TOTAL NUMBER ALSO THE TARGET AUDIENCE WAS TOO EASILY REACHED ELSEWHERE SAYS ERICA GRUEN A SENIOR VICE PRESIDENT AT THE ADVERTISING FIRM SAATCHI & SAATCHI WHO SPECIALIZES IN NEW TELEVISION MEDIA IN ADDITION SHE SAYS CHECKOUT CHANNEL WAS NEITHER FISH NOR FOUL BECAUSE IT DIDN'T GIVE ADVERTISERS A CHANCE TO REACH CUSTOMERS WHILE THEY WERE MAKING BUYING DECISIONS TURNER WOULD HAVE HAD TO SPEND ABOUT 35 MILLION TO MEET ITS EXPANSION GOALS FOR CHECKOUT CHANNEL SAYS JOHN S REIDY AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO TURNER'S FOCUS IS OVERSEAS EXPANSION OF NEWS AND ENTERTAINMENT MR REIDY SAYS YOU CAN'T BE ALL THINGS TO ALL PEOPLE TURNER HAD HOPED TO EXPAND CHECKOUT CHANNEL TO 3000 OR 4000 STORES FROM 840 CHECKOUT CHANNEL WHOSE RESULTS FALL UNDER TURNER'S NEWS DIVISION USES NEWS FEATURES FROM TURNER'S CABLE NEWS NETWORK TURNER SAID IT WILL INSTEAD SEND CNN'S HEADLINE NEWS SERVICE TO SUPERMARKETS THAT ELECT TO KEEP THEIR MONITORS AFTER TURNER DISCONTINUES CHECKOUT CHANNEL TURNER WOULDN'T SPECIFY THE AMOUNT OF THE CHECKOUT CHANNEL'S LOSSES EVEN WITHOUT THE CHARGE OPERATING PROFITS AT TURNER'S NEWS DIVISION FELL 94 IN THE FOURTH QUARTER PARTLY BECAUSE OF COSTS OF OVERSEAS EXPANSION AND COVERAGE OF THE PRESIDENTIAL ELECTION AND THE MILITARY OPERATION IN SOMALIA HIGHER CORPORATE EXPENSES AND CONTINUED LOSSES FROM SYNDICATION AND LICENSING ALSO HURT TURNER'S RESULTS THOUGH HIGH TICKET SALES FOR ITS ATLANTA BRAVES BASEBALL TEAM AND HIGHER ENTERTAINMENT PROFITS HELPED CUSHION THE BLOW ANALYSTS HAD EXPECTED TURNER TO POST FOURTHQUARTER NET INCOME OF ABOUT 20 CENTS A SHARE FOR THE YEAR INCLUDING THE CHECKOUT CHANNEL CHARGE TURNER POSTED EARNINGS OF 776 MILLION OR 30 CENTS A SHARE DOWN 97 FROM 859 MILLION OR 24 CENTS A SHARE THE PREVIOUS YEAR REVENUE JUMPED 20 TO 177 BILLION FROM 148 BILLION IN 1991 9302190153 930219 CHINA BUREAU JOINS INVESTORS TO CREATE ASIA INVESTMENT ARM SPECIAL TO THE WALL STREET JOURNAL HONG KONG THE CHINA STATE COUNCIL'S HONG KONG AND MACAO AFFAIRS OFFICE HAS JOINED THE MOST POWERFUL HONG KONG BUSINESSMEN AND OTHER MAJOR CHINA AND SINGAPORE INVESTORS TO FORM AN INVESTMENT ARM WHICH WILL TAP THE GROWTH POTENTIAL IN ASIA THE CHINESE GOVERNMENTAL OFFICE WILL HOLD ABOUT A 2 INTEREST IN THE NEW COMPANY NEW CHINA HONG KONG GROUP LTD THROUGH ITS OFFSHOOT BEIJING HONG KONG DEVELOPMENT LTD BEIJING'S PARTICIPATION IS CONSIDERED CONTROVERSIAL IN VIEW OF ITS POLITICAL CLOUT IN THE COLONY'S FUTURE WITH A PAIDUP CAPITAL OF 400 MILLION HONG KONG DOLLARS 517 MILLION NEW CHINA HONG KONG GROUP LTD WILL PARTICIPATE IN CHINA TRADE INVEST IN INDUSTRY INFRASTRUCTURE TELECOMMUNICATIONS PROPERTY AND PROVIDE MERCHANT BANKING SERVICES THE COMPANY SAID CHAIRMAN TSUI TSINTONG SAID THE GROUP WILL SERVE AS A BRIDGE TO INTRODUCE INTO CHINA OVERSEAS FUNDS ON THE ONE HAND AND WESTERN TECHNOLOGY AND MANAGEMENT SKILLS ON THE OTHER HAND SHAREHOLDING WILL BE SPLIT BETWEEN THE TRADE DEVELOPMENT BOARD OF SINGAPORE AND ANOTHER SINGAPORE CONCERN HOLDING ABOUT 125 ABOUT 30 HONG KONG INVESTORS HOLDING ABOUT 55 AND 13 MAINLAND CHINESE ENTERPRISES HOLDING ABOUT 325 THOSE HONG KONG INVESTORS INCLUDE STANLEY HO CHAIRMAN OF SHUN TAK HOLDINGS LTD THE WONG FAMILY OF STELUX HOLDINGS LTD HU FAKUANG OF RYODEN INVESTMENT LTD LAI SUN DEVELOPMENT CO AND RICHFIELD INTERNATIONAL HOLDINGS LTD IT IS BELIEVED THAT LOCAL TYCOON LI KASHING CHAIRMAN OF CHEUNG KONG HOLDINGS LTD IS INVOLVED NEW CHINA HONG KONG GROUP SAID IT WILL ALSO SET UP CHINA INVESTMENT FUNDS CERTAIN AMOUNT OF THE FUNDS WILL BE INVESTED IN SUITABLE PROJECTS IN HONG KONG AND ASIA 9302190150 930219 WHO'S NEWS TRICONEX CORP TRICONEX CORP IRVINE CALIF CHARLES W MCBRAYER 44 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF FAULTTOLERANT ELECTRONICS INCREASING THE BOARD TO SIX MR MCBRAYER IS THE COMPANY'S CHIEF FINANCIAL OFFICER 9302190149 930219 PIKE TO PAY 100000 IN SETTLEMENT OF SEC STOCKDISCLOSURE CASE A WALL STREET JOURNAL NEWS ROUNDUP NEW HAMPSHIRE INVESTOR MILO L PIKE AGREED TO DISGORGE 100000 IN A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION OVER VIOLATIONS OF DISCLOSURE REQUIREMENTS INVOLVING HIS PURCHASES OF BANK STOCKS IN THE LATE 1980S MR PIKE WHO EVENTUALLY HAD HEAVY LOSSES WHEN NEW ENGLAND BANK STOCKS PLUMMETED CONSENTED TO A CEASE AND DESIST ORDER WITHOUT ADMITTING OR DENYING WRONGDOING THE SEC SAID MR PIKE OF GILFORD NH DIDN'T REPORT STOCK PURCHASES IN SEVERAL BANKS AS REQUIRED AS A RESULT THE SEC SAID HE WAS ABLE TO PURCHASE THE DESCRIBED STOCK AT PRICES LESS THAN HE COULD HAVE PURCHASED THEM IF THE REQUIRED FILINGS HAD BEEN MADE TIMELY THE PRICES ROSE AFTER HIS PURCHASES WERE DISCLOSED MR PIKE WHO TOOK LARGE STAKES IN MANY NEW ENGLAND BANKS DURING THE ECONOMIC BOOM OF THE LATE 1980S SUFFERED LOSSES IN THE MULTIPLE MILLIONS OF DOLLARS WHEN BANK STOCKS IN THE REGION CRASHED BECAUSE OF LOSSES ON REAL ESTATE LOANS SAID HIS ATTORNEY ROBERT MCDANIEL OF DEVINE MILLIMET & BRANCH IN MANCHESTER NH MR MCDANIEL ADDED MILO IS TECHNICALLY RESPONSIBLE FOR THE FACT THAT PEOPLE HE WAS PAYING TO DO THE JOB OF MAKING APPROPRIATE FILINGS DIDN'T DO IT BUT IT WASN'T INTENT HOW MUCH MONEY DID MILO PIKE MAKE ON THIS TERRIFIC CASE THAT THE SEC MADE AGAINST HIM ZERO IN A SEPARATE CASE MR PIKE PLEADED GUILTY IN JANUARY TO A CRIMINAL CHARGE OF CONSPIRACY TO COMMIT INSIDER TRADING IN THE STOCK OF FIRST NH BANKS INC IN EARLY 1988 FIRST NH WAS ACQUIRED BY BANK OF IRELAND THAT YEAR ACCORDING TO THE US ATTORNEY'S OFFICE IN CONCORD NH MR PIKE WAS LEAKED INSIDE INFORMATION ABOUT THE ACQUISITION TALKS AND PASSED THE INFORMATION TO OTHER COCONSPIRATORS WHO TRADED IN THE STOCK AS PART OF A PLEA BARGAIN MR PIKE IS COOPERATING WITH THE INVESTIGATION 9302190148 930219 STANLEY FURNITURE FACILITY STANLEYTOWN VA STANLEY FURNITURE CO SAID A RECENT FIRE DAMAGED ITS STANLEYTOWN PLANT AFFECTING ABOUT 12 OF THE FURNITURE MAKER'S TOTAL MANUFACTURING FACILITIES IT ISN'T KNOWN HOW THE FIRE STARTED BUT THE COMPANY SAID THE BLAZE DESTROYED SOME FACTORY OFFICES WAREHOUSE SPACE A MEDICAL CLINIC AND AN AREA USED TO MANUFACTURE MAINLY DINING ROOM CASE PIECES INVENTORY LOSSES WERE CHIEFLY CONFINED TO DINING ROOM CHAIRS AND OCCASIONAL TABLES THAT WERE AWAITING SHIPMENT THE COMPANY SAID THE BUILDING AND CONTENTS WERE FULLY INSURED TO MAKE UP FOR PRODUCTION SHORTFALLS THE COMPANY WILL MOVE SOME WORK TO OTHER SITES AND ADD SHIFTS AT STANLEYTOWN 9302190147 930219 KENTUCKY CENTRAL SEIZURE PUTS BUMP IN ROAD TO RECOVERY LIFE INSURER'S FATE IS A SETBACK FOR INDUSTRY TRYING TO BOOST CONFIDENCE OF POLICYHOLDERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LAST WEEK'S SEIZURE OF KENTUCKY CENTRAL LIFE INSURANCE CO IS A SETBACK FOR THE LIFE INSURANCE INDUSTRY WHICH HAS BEEN TRYING TO BOOST THE CONFIDENCE OF ITS POLICYHOLDERS IN THE WAKE OF SEVERAL FAILURES KENTUCKY INSURANCE REGULATORS TOOK OVER THE LEXINGTONBASED COMPANY WITH ASSETS OF 18 BILLION LAST FRIDAY REGULATORS MAINTAIN THE COMPANY IS SOLVENT BUT SAY THEY HAD TO SEIZE THE COMPANY TO HALT A RUN BY POLICYHOLDERS THE RUN BEGAN AFTER A NEW YORK INVESTOR GROUP WITHDREW AN OFFER TO INVEST 100 MILLION IN THE COMPANY AND REGULATORS IN OTHER STATES TOOK ACTION TO PROTECT THEIR POLICYHOLDERS FROM POSSIBLE LOSSES THE COMPANY NEEDS CAPITAL TO ABSORB WHAT COULD BE AS MUCH AS 115 MILLION OF LOSSES IN ITS PORTFOLIO OF REAL ESTATE INVESTMENTS KENTUCKY REGULATORS HAVE PUT A MORATORIUM ON POLICYHOLDER WITHDRAWALS WHILE THEY ATTEMPT TO RESTORE THE COMPANY'S HEALTH WE'RE OPTIMISTIC WE CAN DO THAT SAID PATRICK WATTS GENERAL COUNSEL FOR THE INSURANCE DEPARTMENT HE SAID HE HAS RECEIVED SEVERAL CALLS FROM INVESTORS INTERESTED IN BUYING THE COMPANY THE LIFE INSURANCE INDUSTRY STUNG BY THE FAILURES OF MUTUAL BENEFIT LIFE INSURANCE CO AND OTHERS HAS LATELY BEEN ARGUING THE INDUSTRY'S HEALTH IS IMPROVING CITING IMPROVED PROFITS AND REDUCED EXPOSURE TO RISKY INVESTMENTS THE PROBLEMS AT KENTUCKY CENTRAL COULD REOPEN THE DEBATE THIS SHOWS THERE ARE STILL PROBLEMS OUT THERE SAID RAY DIRKS AN ANALYST WITH RAS SECURITIES IN NEW YORK JOE BELTH EDITOR OF AN INDUSTRY NEWSLETTER THE INSURANCE FORUM SAID THE KENTUCKY CENTRAL SITUATION SHOWS THAT POLICYHOLDERS ARE STILL NERVOUS ABOUT THE HEALTH OF INSURANCE COMPANIES EVEN THOUGH THE ECONOMY SHOWS SIGNS OF RECOVERY THIS SUGGESTS WE'RE NOT OUT OF THE ERA OF EXTREME SENSITIVENESS TO BAD NEWS MR BELTH SAID THAT'S WHAT'S WORRISOME ABOUT THIS KENTUCKY CENTRAL WHICH SPECIALIZED IN THE SALE OF UNIVERSAL LIFE POLICIES OPERATED IN VIRTUALLY EVERY STATE AT THE END OF 1991 THE COMPANY HAD MORE THAN 50 BILLION OF INSURANCE IN FORCE THE SEIZURE CAME AFTER A TURBULENT WEEK THAT BEGAN WHEN THE NEW YORK INVESTOR GROUP WHR MANAGEMENT CO WITHDREW ITS OFFER FLORIDA REGULATORS WORRIED ABOUT POTENTIAL LOSSES FOR POLICYHOLDERS IN THEIR STATE THREATENED TO WITHDRAW THE COMPANY'S LICENSE UNLESS IT FOUND ANOTHER SOURCE OF CAPITAL CALIFORNIA FOLLOWED BY ORDERING THE COMPANY TO STOP SELLING NEW POLICIES AND RENEWING EXISTING POLICIES BOTH STATES ARE REGARDED AS HAVING AGGRESSIVE INSURANCE DEPARTMENTS THE COMPANY HAS BEEN IN TROUBLE FOR SOME TIME AND ITS PROBLEMS WERE WIDELY KNOWN A YEAR AGO CONCERNS ABOUT THE COMPANY'S REAL ESTATE EXPOSURE SPARKED A WAVE OF POLICYHOLDER SURRENDERS STANDARD & POOR'S ESTIMATES THE COMPANY FACES POSSIBLE REAL ESTATE LOSSES OF BETWEEN 80 MILLION AND 115 MILLION IN A REPORT LAST YEAR THE RATING CONCERN OBSERVED THAT KENTUCKY CENTRAL'S CAPITAL WAS ALSO BEING ERODED BY THE COMPANY'S AGGRESSIVE STOCK REPURCHASE PROGRAM THE COMPANY SPENT 13 MILLION TO BUY BACK STOCK IN LAST YEAR'S FIRST QUARTER ACCORDING TO S&P THE WISDOM OF THE STRATEGY IS NOW BEING CALLED INTO QUESTION EITHER THEY FELT THEY HAD TO DEFEND THE STOCK SO PEOPLE DIDN'T THINK THEY WERE GOING DOWN THE TUBES OR THEY THOUGHT IT WAS UNDERVALUED MR DIRKS SAID 9302190146 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP HOME EQUITY THE COMMUNITY REINVESTMENT ACT HASN'T BEEN MUCH HELP TO INNERCITY BUSINESSES THAT MAY CHANGE BY PETER PAE IN 1977 AMID MUCH HOPE AND PROMISE CONGRESS PASSED THE COMMUNITY REINVESTMENT ACT THE ACT WHICH REQUIRED BANKS AND SAVINGS AND LOANS TO LEND IN ALL AREAS IN WHICH THEY TAKE DEPOSITS WAS AIMED AT GETTING MORE INVESTMENT IN THE INNER CITY SIXTEEN YEARS LATER MOST BLACK ENTREPRENEURS AGREE FOR THEM THE LAW HAS BEEN PRETTY MUCH OF A DUD THE FOCUS OF CRA HAS NOT BEEN ON MINORITYBUSINESS LENDING SAYS SUNNYBRENT HARDING FORMER DIRECTOR OF THE STATE OFFICE OF MINORITY AND WOMEN BUSINESS ASSISTANCE IN MASSACHUSETTS BRENDA ALFORD CHAIRWOMAN OF THE AMERICAN ASSOCIATION OF BLACK WOMEN ENTREPRENEURS PUTS IT MORE BLUNTLY I HAVEN'T SEEN ANY IMPACT OF THE ACT ON OUR MEMBERS SHE SAYS THAT HOWEVER MAY BE CHANGING COMMUNITY GROUPS AREN'T YET READY TO CELEBRATE BUT THEY DO BELIEVE THAT CHANGES ARE ON THE WAY THAT COULD FINALLY BOLSTER SMALLBUSINESS LENDING RELATING TO THE 1977 LEGISLATION THEY ARE PARTICULARLY ENCOURAGED BY PRESIDENT CLINTON'S PROMISE TO STRENGTHEN THE COMMUNITY REINVESTMENT PROGRAM BY CREATING A NETWORK OF 100 COMMUNITY DEVELOPMENT BANKS TO GIVE OUT SMALLBUSINESS LOANS AND MORTGAGES IN POOR URBAN AND RURAL AREAS MOREOVER THEY SAY STATES ARE ALREADY MOVING TO ENFORCE THE PROGRAM ON THEIR OWN THE NEW YORK STATE BANKING DEPARTMENT FOR EXAMPLE IS PROPOSING CHANGES TO ITS BANKING RULES THAT WOULD STRENGTHEN AND CLARIFY THE PROGRAM WITH THE IDEA OF INCREASING LOANS TO SMALL BUSINESSES IN LOWINCOME AREAS ACKNOWLEDGING A SHORTAGE IN THE AVAILABILITY OF SMALLBUSINESS LOANS THE PROPOSAL CALLS FOR AMONG OTHER THINGS THE DEVELOPMENT OF BANK CONSORTIA TO PROVIDE SMALLBUSINESS LOANS PARTICULARLY IN AMOUNTS RANGING FROM 50000 TO 300000 BANKS THAT PARTICIPATE IN A CONSORTIUM COULD HELP ENHANCE THEIR COMMUNITY REINVESTMENT RATINGS THE PROGRAM HAS HAD MINIMAL IMPACT ON LENDING TO MINORITIES BUT THE HANDWRITING ON THE WALL IS PROMISING SAYS JOHN TAYLOR EXECUTIVE DIRECTOR OF THE NATIONAL COMMUNITY REINVESTMENT COALITION AN ASSOCIATION OF COMMUNITY GROUPS IN WASHINGTON DC PROPONENTS SAY IT'S ABOUT TIME THE LEGISLATION WAS PASSED IN 1977 IN RESPONSE TO CONCERNS THAT BANKS WERE REDLINING AROUND ECONOMICALLY DEPRESSED AREAS EXCLUDING THESE POOR NEIGHBORHOODS FROM CREDIT BUT THE ACT WAS RELATIVELY IGNORED IN THE DEREGULATORY ENVIRONMENT OF THE 1980S THEN IN 1989 AS PART OF THE THRIFTINDUSTRY BAILOUT MORTGAGE LENDERS WERE REQUIRED TO PUBLICLY REPORT HOME LOANS ACCORDING TO BORROWERS' INCOME RACE AND LOCATION AT LAST COMMUNITY GROUPS HAD THE AMMUNITION THEY NEEDED STATISTICAL EVIDENCE THAT BLACK AND HISPANIC MORTGAGE APPLICANTS REGARDLESS OF INCOME ARE MUCH MORE LIKELY TO BE TURNED DOWN THAN WHITE APPLICANTS ARE AT ABOUT THE SAME TIME NEW BANKING PROVISIONS PUT MORE TEETH INTO THE LONGIGNORED ACT THE PROVISIONS CALLED FOR PERIODIC REVIEWS AND GRADING OF BANKS' LENDING ACTIVITIES GOOD CRA RATINGS BECAME ONE OF THE KEY CRITERIA FOR OBTAINING REGULATORY APPROVAL FOR BANKS' MERGER AND ACQUISITION PLANS COMMUNITY GROUPS KNEW A GOOD WEAPON WHEN THEY SAW ONE USING THE CRA LEGISLATION THE GROUPS COULD WIN LOAN COMMITMENTS BY THREATENING TO CHALLENGE PROPOSED MERGERS AND ACQUISITIONS BUT WHILE THE ACT HAS BEEN USED TO OBTAIN INNERCITY LENDING COMMITMENTS FROM BANKS MUCH OF THE MONEY HAS BEEN TARGETED FOR HOUSING WITH LITTLE GOING TOWARD SMALL BUSINESSES THAT'S LARGELY BECAUSE BANKS AREN'T REQUIRED TO PROVIDE DATA ON THEIR SMALLBUSINESSLENDING PRACTICES AS THEY ARE WITH HOUSING LOANS THAT INFORMATION IS CRITICAL IN ASSESSING WHAT IS AND WHAT ISN'T HAPPENING TO MINORITYBUSINESS LENDING SAYS MR TAYLOR OF THE NATIONAL COMMUNITY REINVESTMENT COALITION ADDS ALLEN FISHBEIN DIRECTOR OF THE WASHINGTON DC CENTER FOR COMMUNITY CHANGE WE'RE SHOOTING IN THE DARK AND THAT'S NOT GOING TO CHANGE WITHOUT QUANTITATIVE DATA AN EFFORT TO INSERT AN AMENDMENT TO THE 1992 BANKING BILL CALLING FOR BANKS TO REPORT THEIR SMALLBUSINESSLENDING RECORD WAS UNSUCCESSFUL BANKERS DENIED THAT THEY REDLINE AND ARGUED THAT THE PROVISION WOULD HAVE ADDED INTOLERABLE PAPERWORK THEY ALSO ARGUE THAT THE AMENDMENT ISN'T NEEDED WE'VE SEEN A LOT OF EXAMPLES OF SPECIAL PROGRAMS TO PROVIDE LENDING TO MINORITYOWNED BUSINESS SAYS A SPOKESWOMAN FOR THE AMERICAN BANKERS ASSOCIATION IT IS A RESULT OF BANKS' INCREASED SENSITIVITY TO CRA COMMUNITY GROUPS SAY THE BANKERS OVERSTATE THEIR CONTRIBUTIONS BUT THEY DO AGREE THAT THE COMMUNITY REINVESTMENT ACT'S IMPACT WHILE MINIMAL IS BETTER THAN NOTHING WITHOUT CRA YOU WOULD HAVE NO BANKS LENDING PERIOD SAYS PETE PUTNAM DIRECTOR OF COMMUNITY COALITION FOR FAIR BANKING IN NEW YORK HE SAYS FOR EXAMPLE THAT THANKS TO THE ACT THE GROUP LAST YEAR WAS ABLE TO GET BANK OF NEW YORK CORP TO EXPAND ITS LENDING AREA TO CERTAIN LOWERINCOME NEIGHBORHOODS IN NEW YORK EVEN THOUGH THE BANK DIDN'T HAVE ANY BRANCHES AND DIDN'T TAKE DEPOSITS IN THOSE AREAS THE GROUP HAD THREATENED TO HOLD UP BANK OF NEW YORK'S ACQUISITION OF 62 BARCLAY BANK BRANCHES ALLEGING THE BANK RARELY LENT MONEY IN POOR MOSTLY MINORITY NEIGHBORHOODS TED WYSOCKI EXECUTIVE DIRECTOR OF THE CHICAGO ASSOCIATION OF NEIGHBORHOOD DEVELOPMENT ORGANIZATION CONCURS THINGS WOULD BE A LOT WORSE IF WE DIDN'T HAVE CRA HE SAYS NOTING THAT WITHOUT IT I DON'T KNOW IF WE COULD HAVE PUT TOGETHER OUR INNOVATIVE PROGRAM INDEED MR WYSOCKI'S ASSOCIATION HAS RECENTLY BEEN ABLE TO GET 17 BANKS IN CONJUCTION WITH THE STATE TO FINANCE A MICROLOAN PROGRAM IN CHICAGO UNDER THE PROGRAM WHICH HELPS BANKS FULFILL THEIR COMMUNITY REINVESTMENT REQUIREMENT THE STATE GOVERNMENT AGREED TO INJECT 19 MILLION IN STATE DEPOSITS WITH THE BANKS WITH THE INTEREST GENERATED FROM THE DEPOSITS TO BE USED TO PROVIDE LOANS AND TRAINING TO MINORITYOWNED BUSINESS IN THE INNER CITY ALFRIEDA DOCKERY WAS ONE OF THE BENEFICIARIES WHEN SHE STARTED HER TRAVEL AGENCY U SEND ME TRAVEL IN THE JACKSON PARK AREA OF CHICAGO IN 1991 SHE COULDN'T GET A BANK LOAN INSTEAD SHE BORROWED 10000 FROM CLOSE FRIENDS BANKS SHE SAYS WOULDN'T EVEN CONSIDER THE VENTURE BECAUSE SHE WASN'T ABLE TO SHOW A TRACK RECORD OF RUNNING A BUSINESS FOR TWO YEARS IT'S SORT OF LIKE CATCH22 SAYS MS DOCKERY YOU HAVE TO PROVE YOURSELF THAT YOU CAN RUN A BUSINESS BUT HOW CAN YOU DO THAT WHEN THEY WON'T LEND TO YOU TO START THE BUSINESS IN THE FIRST PLACE BUT LAST NOVEMBER MS DOCKERY RECEIVED A 5000 BANK LOAN THROUGH THE CHICAGO PROGRAM ALTHOUGH THE LOAN WAS FOR ONLY HALF AS MUCH AS SHE WANTED SHE USED IT PRIMARILY TO ADD NEW OFFICE EQUIPMENT MOREOVER MS DOCKERY SAYS IT WILL BE INVALUABLE IN EVENTUALLY PERSUADING BANKS TO LEND HER MORE MONEY HELPING TO ESTABLISH BANK CREDIT FOR THE COMPANY MS DOCKERY HOPES THAT EVENTUALLY SHE CAN TURN TO THE BANKS WITHOUT FEAR OF REJECTION WHEN SHE NEEDS FINANCING TO EXPAND HER BUSINESS I PURSUED THE LOAN SO THAT I COULD HAVE VIABILITY WITH THE BANKS MS DOCKERY SAYS SOME SIMILIAR PROGRAMS ARE STARTING TO APPEAR SUCH AS THE MASSACHUSETTS MINORITY ENTERPRISE INVESTMENT CORP BUT THEY HAVE BEEN SMALL AND SLOW TO GROW THE CHICAGO PROGRAM FOR INSTANCE PLANS TO LEND ONLY ABOUT 100000 A YEAR WE'RE PROVIDING LENDING THAT COULDN'T BE DONE BY BANKS SAYS TOM SHUMPERT PRESIDENT OF THE MASSACHUSETTS PROGRAM THE DIFFICULTY IS THAT THE KIND OF LENDING WE DO IS TIMECONSUMING AND TAKES SO MUCH HAND HOLDING MR PAE IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190145 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP WHERE THE MONEY IS INVESTMENT POOLS FOR MINORITYOWNED BUSINESSES SET THEIR SIGHTS ON AN ELUSIVE TARGET PENSION FUNDS BY JOHN R EMSHWILLER LOS ANGELES DONALD PERRY II AND ARMAN WALKER ARE TRYING TO TAP INTO A 4 TRILLION PIGGY BANK THE 4 TRILLION IS ROUGHLY THE AMOUNT OF MONEY IN US PUBLIC AND PRIVATE PENSION FUNDS ENTITIES THAT HAVE TRADITIONALLY VIEWED INNERCITY NEIGHBORHOODS WITH AN INVESTMENT ZEAL THEY OTHERWISE RESERVE FOR CZARIST RAILROAD BONDS TWO YEARS AGO MESSRS PERRY AND WALKER SET OUT TO CHANGE THAT ATTITUDE THEY LEFT THE CORPORATE BANKING WORLD DREAMING OF BECOMING FINANCIERS TO MINORITYOWNED COMPANIES PRIMARILY IN THE LOS ANGELES AREA THEY ARE NOW MORE THAN ONETHIRD OF THE WAY TOWARD PUTTING TOGETHER AN INVESTMENT FUND OF AT LEAST 25 MILLION IT'S AN EFFORT THAT IS BEING REPEATED ACROSS THE COUNTRY MORE THAN TWO DOZEN VENTURE FUNDS HAVE BEEN STARTED IN THE PAST FEW YEARS WITH THE AIM OF EITHER INVESTING IN OR CREATING MINORITYOWNED COMPANIES SAYS MICHAEL GRANGER A PRINCIPAL OF ARK CAPITAL MANAGEMENT CO IN CHICAGO ARK IS TRYING TO RAISE AT LEAST 100 MILLION FOR A FUND OF FUNDS THAT WOULD HELP FINANCE MINORITYINVESTMENT FUNDS THE NUMBER OF MINORITY FUNDS RAISING MONEY NOW IS UNPRECEDENTED MR GRANGER SAYS SO FAR THOUGH THE PENSION FUNDS ARE PROVING TO BE AN ELUSIVE TARGET THE LOS ANGELES FUND FOR INSTANCE HAS RAISED MORE THAN 10 MILLION BUT MOSTLY FROM WEALTHY AFRICANAMERICANS SAYS MR PERRY THE FUND'S 34YEAROLD MANAGING PARTNER DISCUSSIONS ARE UNDER WAY WITH CALIFORNIA'S TWO BIGGEST PUBLIC PENSION FUNDS ABOUT POSSIBLE INVESTMENTS RIGHT NOW IT IS EASIER TO GET CAPITAL INTO EASTERN EUROPE OR SOUTH AMERICA THAN INTO SOUTH CENTRAL LOS ANGELES SAYS MR PERRY WHO WITH MR WALKER AND THREE OTHERS HAS FORMED PINE COBBLE PARTNERS TO DO THE FUND RAISING WE WANT TO CHANGE THAT THEIR PITCH IS A SIMPLE ONE MANY MINORITY FIRMS PARTICULARLY THOSE THAT ARE BLACKOWNED COULD BLOOM IF THEY ONLY HAD BETTER ACCESS TO EQUITY CAPITAL WE THINK WE HAVE ENOUGH TALENT IN THE AFRICANAMERICAN COMMUNITY THAT WE DON'T HAVE TO LOWER INVESTMENT STANDARDS SAYS MR WALKER THE FUND'S 34YEAROLD COMANAGING PARTNER THE FUND'S PRIVATEPLACEMENT MEMORANDUM FOR PROSPECTIVE INVESTORS SAYS THE GOAL IS TO PRODUCE 3035 ANNUAL RETURNS ON INVESTMENT THE TWO MEN BELIEVE THAT THE ECONOMIC TRENDS ARE ON THEIR SIDE THEY NOTE FOR INSTANCE THE RISING WEALTH AND THE ENTREPRENEURIAL SAVVY OF BLACKS AND OTHER MINORITYGROUP MEMBERS US CENSUS BUREAU FIGURES SHOW THAT MORE THAN 8000 MINORITYOWNED FIRMS HAVE ANNUAL REVENUES OF 1 MILLION OR MORE WE ARE SEEING MAJOR DEMOGRAPHIC SHIFTS IN THE COUNTRY AND TRADITIONAL VENTURECAPITAL COMPANIES HAVEN'T BEEN RESPONDING SAYS JOANN PRICE GENERAL PARTNER OF FAIRVIEW CAPITAL LP A MINORITYORIENTED FUND IN STAMFORD CONN SOCALLED MINORITYENTERPRISE SMALLBUSINESS INVESTMENT COMPANIES WHICH BLEND PRIVATE AND FEDERAL MONEY INTO INVESTMENT POOLS FOR MINORITYOWNED FIRMS HAVE BEEN AROUND FOR A LONG TIME BUT THEIR STRUCTURE AND GOVERNMENT REGULATION GIVE THEM LIMITED APPEAL TO INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS ANALYSTS SAY THE MOVE TO BUILD STRICTLY PRIVATE VENTURE FUNDS HOWEVER CARRIES A TOUGH SELLING JOB MANY INVESTORS ARE SKEPTICAL ABOUT PUTTING MONEY IN SOME OF THE HIGHCRIME LOWINCOME AREAS WHERE THE FUNDS WANT TO INVEST KEN LOMBARD PRESIDENT OF ECONOMIC RESOURCES CORP A NONPROFIT LOS ANGELESAREA FIRM WHOSE MISSION IS TO FOSTER MINORITY ECONOMIC DEVELOPMENT IN SOUTH CENTRAL LOS ANGELES HAS BEEN TRYING FOR THREE YEARS TO CREATE A 25 MILLION VENTURE FUND SO FAR WITH LITTLE SUCCESS HE SAYS HE THOUGHT THAT THE RIOTS MIGHT HELP BY INCREASING THE INTEREST IN MINORITYFIRM INVESTMENTS WE FOUND THERE WERE A LOT OF STATEMENTS ABOUT INTENT BUT VERY LITTLE FOLLOWTHROUGH IT HAS BEEN VERY VERY DIFFICULT SAYS MR LOMBARD HE HAS LOWERED HIS SIGHTS TO THE 5MILLIONTO10MILLION RANGE SUCH SETBACKS WORRY SOME ANALYSTS WHO ARGUE THAT THE DEMAND FOR MONEY HAS OUTSTRIPPED THE SUPPLY GENE HALE A BUSINESS OWNER AND PRESIDENT OF THE LOS ANGELES AFRICANAMERICAN CHAMBER OF COMMERCE SAYS THE CHAMBER LOOKED AT STARTING A VENTURE FUND BUT DECIDED AGAINST IT PARTLY BECAUSE OF THE PROLIFERATION OF SUCH MINORITY FUNDS WHEN YOU STRIP THE BARK FROM THE TREE YOU HAVE TOO MANY PEOPLE CHASING TOO FEW DOLLARS MR HALE SAYS PERHAPS BUT THAT HASN'T DISCOURAGED MESSRS PERRY AND WALKER THE OTHER MINORITYVENTURE FUNDS ARE SIMPLY A SIGN OF HEALTHY COMPETITION SAYS MR WALKER THE TWO PARTNERS' CREDENTIALS CERTAINLY LEND CREDIBILITY TO THEIR VENTURE BOTH WENT TO TOPNOTCH UNIVERSITIES MR PERRY HAS DEGREES FROM WILLIAMS COLLEGE AND CLAREMONT COLLEGE AND MR WALKER FROM THE UNIVERSITY OF CALIFORNIA BERKELEY THEIR RESUMES AS BANKERS INCLUDE STINTS AT MORGAN GUARANTY SECURITY PACIFIC AND SANWA THE TWO HAVE BEEN WORKING ON THEIR FUND IDEA FOR OVER TWO YEARS THEY STUDIED THE EARLY HISTORY OF KOHLBERG KRAVIS ROBERTS THE HUGELY SUCCESSFUL LEVERAGEDBUYOUT FIRM IN HOPES OF GETTING LESSONS ON HOW TO CREATE THEIR OWN TO BUILD A NETWORK OF CONTACTS THEY HAVE HUNG OUT AT FINANCIAL SEMINARS AND SCANNED FINANCIAL PUBLICATIONS IN SEARCH OF ANYONE WHO SEEMED REMOTELY INTERESTED IN MINORITYINVESTMENT FUNDS THEY THEN TRACKED THE LEADS DOWN TO DISCUSS THEIR IDEA BY THEIR OWN COUNT THEY HAVE MET WELL OVER 500 PEOPLE RANGING FROM PENSIONFUND MANAGERS TO SMALLBUSINESS OWNERS DON PERRY STRUCK ME AS SOMEONE WHO IS ON A MISSION SAYS NELSON DAVIS WHO PRODUCES A LOCAL TELEVISION SHOW FOCUSING ON SUCCESSFUL MINORITYOWNED BUSINESSES ALONZO WALLETTE HAS SIGNED ON TO THE MISSION A SUCCESSFUL BLACK BUSINESSMAN MR WALLETTE AGREED TO INVEST AT LEAST 100000 WITH MESSRS PERRY AND WALKER THE MINIMUM SUM THAT THEY WILL ACCEPT ONE REASON HE WANTS TO GIVE YOUNG BLACK ENTREPRENEURS THE KIND OF BREAK THAT TOO RARELY CAME HIS WAY IN THE 14 YEARS SINCE HE LAUNCHED HIS ELECTRONICS FIRM WHICH SUPPLIES THE DEFENSE AND AIRTRAFFICCONTROL INDUSTRIES IT'S ALWAYS DON'T CALL US WE'LL CALL YOU' SAYS MR WALLETTE IN THEIR NETWORKING EFFORTS MESSRS PERRY AND WALKER MET A REPRESENTATIVE OF THE HUGE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM KNOWN AS CALPERS WITH ABOUT 70 BILLION IN ASSETS AND AN OBVIOUS STAKE IN THE FUTURE OF CALIFORNIA THE PENSION FUND WAS A PRIME TARGET OF THE TWO YOUNG FINANCIERS WE SPENT THREE MONTHS WORKING ON THE APPLICATION PACKAGE TO CALPERS SAYS MR PERRY THE PACKAGE EARNED THEM AN APPOINTMENT WITH TOP CALPERS OFFICIALS AN OPPORTUNITY MOST APPLICANTS DON'T GET SAYS DEWITT BOWMAN CALPERS'S CHIEF INVESTMENT OFFICER WE'VE SEEN ENOUGH SUBSTANCE TO HAVE A FORMAL MEETING HE SAYS THOUGH HE CAUTIONS CALPERS STILL NEEDS TO CONDUCT A FURTHER REVIEW BEFORE COMMITTING ANY MONEY IN THEIR PITCH FOR SUCH PENSIONFUND MONEY THE TWO MEN WERE HELPED BY OUTSIDE EVENTS EARLIER THIS YEAR CALPERS BEGAN INVESTING IN MINORITY FUNDS AND HAS ALREADY COMMITTED 50 MILLION TO TWO OF THEM THE RIOTS ALSO HELPED FOCUS CALPERS'S ATTENTION ON SOUTH CENTRAL LOS ANGELES WHERE IT CURRENTLY HAS NO MONEY DIRECTLY INVESTED WE ARE LOOKING AT HOW TO TARGET THAT AREA IN A RESPONSIBLE MANNER SAYS MR BOWMAN INDEED MESSRS PERRY AND WALKER HAVE INCORPORATED THE RIOTS INTO THEIR SALES PITCH THEY ARGUE THAT A LACK OF CAPITAL FORMATION AFTER THE 1965 WATTS RIOTS HELPED LAY THE FOUNDATIONS FOR THE 1992 UNREST SAYS MR WALKER IF IMPROVEMENTS AREN'T MADE IT WON'T TAKE ANOTHER 25 YEARS TO EXPLODE AGAIN MR EMSHWILLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9302190144 930218 CLINTON'S ECONOMIC PACKAGE WINNERS AND LOSERS IN CLINTON'S ECONOMIC PLAN SHORTTERM PAIN FOR LONGTERM GAIN THAT'S HOW PRESIDENT CLINTON HOPES TO SELL A SHARED SACRIFICE PROPOSAL OF TAX INCREASES AND SPENDING CUTS DESIGNED TO HELP KEEP INTEREST RATES AND INFLATION DOWN BY LOWERING THE DEFICIT AND LAYING A FIRMER FOUNDATION FOR FUTURE PROSPERITY MR CLINTON HAS SWEETENED HIS PROPOSALS WITH A 30 BILLION SHORTTERM STIMULUS PACKAGE TO SPUR JOB GROWTH HE ALSO HAS OFFERED A FOURYEAR 160 BILLION PLAN TO BOOST SPENDING FOR TRANSPORTATION NEW TECHNOLOGY AND HOUSING AND COMMUNITY DEVELOPMENT COMPANIES IN THESE FIELDS WOULD BE WINNERS UNDER THE CLINTON PLAN CITIES AND TOWNS ALSO WOULD BENEFIT BUT MOST AMERICANS WOULD FIND THEIR TAXES GOING UP WITH THE NATION'S WEALTHIEST CITIZENS THOSE 2 WITH INCOMES OVER 200000 PAYING ABOUT 14 MORE IN FEDERAL TAXES ALL AMERICANS WOULD PAY MORE FOR ENERGY ALTHOUGH FAMILIES WITH ANNUAL INCOMES UP TO 30000 WOULD BENEFIT FROM AN EXPANDED EARNED INCOME TAX CREDIT TO COMPENSATE FOR THE HIGHER FUEL COSTS CORPORATIONS ALSO WOULD FACE HIGHER TAXES AND COUNTRY CLUBS AND FANCY RESTAURANTS WOULD BE HURT BY PROPOSALS THAT WOULD LIMIT CORPORATE ENTERTAINING LOSERS THE WEALTHY SOME ELDERLY AND HEIRS OF BIG ESTATES WILL COME OUT WORSE TAXES WILL RISE BY ABOUT 3 FOR MOST MIDDLE INCOME FAMILIES BUT WEALTHY INDIVIDUALS WILL SEE THEIR TAX BURDEN RISE MORE SHARPLY COUPLES WITH TAXABLE INCOME OVER 140000 WILL SEE THEIR TOP TAX RATE RISE TO 36 FROM 31 IN ADDITION THE CLINTON PLAN CALLS FOR A 10 SURTAX ON TAXABLE INCOME OVER 250000 WHICH WOULD BOOST THE TOP RATE TO 396 INHERITANCE TAXES WHICH FELL TO 50 THIS YEAR WOULD BE AS HIGH AS 55 THE TOP RATE ON THE ALTERNATIVE MINIMUM TAX WHICH IS PAID BY PEOPLE WITH LARGE DEDUCTIONS WOULD RISE TO 28 FROM THE CURRENT 24 ALTHOUGH THE NUMBER OF PEOPLE PAYING THE TAXES WILL REMAIN AT ABOUT 420000 IN ADDITION WEALTHY PEOPLE AND THEIR EMPLOYERS WOULD PAY MORE INTO MEDICARE CURRENTLY A 29 MEDICARE TAX SPLIT EVENLY BETWEEN WORKERS AND EMPLOYERS IS PAID ON THE FIRST 135000 OF INCOME MR CLINTON WANTS TO REMOVE THIS CEILING THE CHANGE ALSO WOULD HURT SMALL BUSINESSES AND SOLEPROPRIETORSHIPS PARTICULARLY HARD WINNERS WEALTHY TAXPAYERS WITH LARGE CAPITAL GAINS FROM THE SALE OF SECURITIES OR OTHER PROPERTY WOULD END UP AS COMPARATIVE WINNERS BECAUSE THE TOP CAPITAL GAINS RATE WOULD REMAIN AT 28 NEARLY 12 PERCENTAGE POINTS LESS THAN THE PROPOSED HIGHEST MARGINAL RATE THIS WOULD ENCOURAGE WEALTHY INVESTORS TO FAVOR LONGTERM GROWTH OPPORTUNITIES OVER INVESTMENTS THAT GENERATE IMMEDIATE INCOME THE POOREST FAMILIES THOSE WITH INCOMES OF LESS THAN 10000 WILL SEE THEIR TAX BILLS DECLINE BECAUSE OF EXPANDED TAX CREDITS TO OFFSET HIGHER ENERGY TAXES LOSERS BIG CORPORATIONS PARTICULARLY SERVICE COMPANIES AS WELL AS PHARMACEUTICAL AND OTHER COMPANIES THAT MANUFACTURE IN PUERTO RICO WOULD BE LOSERS SECURITIES DEALERS ALSO WOULD PAY HIGHER TAXES REFLECTING APPRECIATION IN THEIR TRADING PORTFOLIOS THE BIGGEST CHANGE FOR CORPORATIONS WOULD BE AN INCREASE TO 36 FROM 34 IN THE TOP CORPORATE RATE IN ADDITION COMPANIES NO LONGER WOULD BE ABLE TO DEDUCT LOBBYING EXPENSES THE PORTION OF AN EXECUTIVE'S PAY OVER 1 MILLION CLUB DUES OR MORE THAN HALF OF BUSINESS MEAL AND ENTERTAINMENT EXPENSES INCORPORATED SERVICE FIRMS SUCH AS ELECTRICIANS AND PLUMBERS WOULD FACE INCREASED PAPERWORK AND TAX COLLECTION INITIATIVES WINNERS SMALL FIRMS AND COMPANIES THAT MAKE HEAVY CAPITAL INVESTMENTS WOULD COME OUT AHEAD THE TAX RATE WOULD REMAIN AT 34 FOR FIRMS WITH ANNUAL SALES OF LESS THAN 10 MILLION AND FIRMS MAKING CAPITAL INVESTMENTS WOULD BENEFIT FORM A PROPOSED 7 INVESTMENT TAX CREDIT THE CREDIT WOULD BE PERMANENT FOR FIRMS WITH SALES OF LESS THAN 5 MILLION YEAR AND TEMPORARY FOR OTHERS LOSERS EVERYBODY WOULD PAY MORE FOR ENERGY AND THE TAX ON THE HEAT CONTENT OF FUEL WOULD BOOST THE PRICE OF ALMOST ALL PRODUCTS INCLUDING AGRICULTURAL GOODS AN ENERGY DEPARTMENT OFFICIAL SAID THE TAX WOULD FALL MORE HEAVILY ON OIL COMPANIES THAN ON COAL AND NATURAL GAS PRODUCERS WINNERS POORER FAMILIES THOSE WITH INCOMES UP TO 30000 LARGELY WOULD BE PROTECTED FORM THE HIGHER FUEL COSTS BECAUSE THEY WOULD QUALIFY FOR EXPANDED TAX CREDITS IN ADDITION PRODUCERS OF WINDMILLS AND SOLAR PANELS WOULD BENEFIT BECAUSE THE TAX WOULDN'T APPLY TO SUCH RENEWABLE ENERGY SOURCES LOSERS FEDERAL EMPLOYEES WOULD BE HIT HARD BY MR CLINTON'S PLAN TO CUT SPENDING HE WANTS TO SKIP A FEDERAL PAY INCREASE IN THE NEXT FISCAL YEAR AND TRIM THE SIZE OF FUTURE INCREASES HOSPITALS AND MEDICAL LABORATORIES WOULD RECEIVE LOWER MEDICARE REIMBURSEMENTS SECURITIES AND EXCHANGE COMMISSION REGISTRATION FEES AND CUSTOMS FEES WOULD BE INCREASED WINNERS ROADBUILDERS CEMENT COMPANIES HEAVY EQUIPMENT MAKERS WOULD ALL BENEFIT FROM A PROPOSAL TO SPEND MORE ON HIGHWAY PROJECTS MASS TRANSIT AND HIGHSPEED RAIL LINES MR CLINTON ALSO CALLS FOR MORE MONEY FOR SCIENTIFIC AND MEDICAL RESEARCH ENVIRONMENTAL CLEANUP WORKER TRAINING AND SUPPORT FOR DISADVANTAGED CHILDREN THE CORPORATE INCOME TAX RATE WOULD REMAIN AT 34 FOR COMPANIES WITH ANNUAL TAXABLE INCOME OF LESS THAN 10 MILLION UNDER PRESIDENT CLINTON'S ECONOMIC PLAN YESTERDAY A LIST OF WINNERS AND LOSERS UNDER THE PLAN ERRONEOUSLY DESCRIBED THE THRESHOLD BELOW WHICH THE RATE WOULDN'T CHANGE AS APPLYING TO COMPANIES WITH ANNUAL SALES OF LESS THAN 10 MILLION 9302190142 930219 CLINTON'S ECONOMIC PACKAGE ENERGY TAX STRIVES TO BE FAIR BUT SOME WILL FEEL PICKED ON BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN DESIGNING A BROADBASED ENERGY TAX PRESIDENT CLINTON AND HIS ADVISERS AVOIDED SETTING OFF A POLITICAL MAELSTROM WITH A PLAN THAT WOULD HAVE HIT SOME REGIONS OF THE COUNTRY MUCH HARDER THAN OTHERS BUT THE BROADBASED ENERGY TAX HE PROPOSED WOULD HIT SOME INDUSTRIES MUCH HARDER THAN OTHERS ALUMINUM AND PAPER WILL GET SOCKED ESPECIALLY HARD AS WILL TRUCKERS AIRLINES AND WHOLESALE GROCERS THE TAX WHICH IS BASED ON THE AMOUNT OF HEAT GENERATED BY AN ENERGY SOURCE AS MEASURED IN BRITISH THERMAL UNITS OR BTUS WOULD BE LEVIED ON PRODUCERS OF COAL OIL NATURAL GAS AND OTHER FUELS RATHER THAN ON ENERGY USERS BUT ENERGY COMPANIES WOULD PASS ON THE ADDED COSTS AND THEIR BIGGEST CUSTOMERS WILL FEEL IT EVENTUALLY THE PRICE INCREASES GET PASSED ALONG TO CONSUMERS IT CERTAINLY HITS THE CAPITALINTENSIVE MANUFACTURING SECTOR RIGHT BETWEEN THE EYES SAYS STEPHEN ROACH A SENIOR ECONOMIST AT MORGAN STANLEY CO WHO NOTES THAT THESE ENERGYINTENSIVE INDUSTRIES HAVE ALREADY GONE THROUGH A WRENCHING RESTRUCTURING FOR THE PAST DECADE HEAVY ENERGY USERS SUCH AS THE CHEMICAL METALS AND PAPER INDUSTRIES WILL BE HIT THE HARDEST ACCORDING TO JERRY TAYLOR A NATURAL RESOURCES SPECIALIST AT THE CATO INSTITUTE A WASHINGTON THINK TANK THESE INDUSTRIES ARE NOT WASTEFUL INSISTS MR TAYLOR THEY'RE IN THIS COUNTRY BECAUSE WE HAVE A COMPETITIVE ADVANTAGE IN LOW ENERGY COST IN MR TAYLOR'S VIEW THAT ADVANTAGE WOULD BE ERODED BY THE NEW TAX ON A TRIP TO TEXAS TO PROMOTE THE CLINTON PLAN TREASURY SECRETARY LLOYD BENTSEN DEFENDED THE ENERGY TAX AS THE BEST CHOICE ON THE MENU BECAUSE IT WOULD ACHIEVE MORE OF A REGIONAL BALANCE THAN OTHER OPTIONS FOR EXAMPLE A TAX ON IMPORTED OIL WOULD HAVE BEEN PARTICULARLY HARD ON NEW ENGLAND HE SAID WHILE A STRAIGHT GASOLINE TAX WOULD HAVE HIT HIS HOME STATE OF TEXAS PARTICULARLY HARD STILL HE SAID HE WASN'T SURPRISED THAT THE PROPOSED BTU TAX HAD SPARKED CRITICISM ANYTHING THAT WOULD RAISE THAT MUCH MONEY WAS GOING TO BE CONTROVERSIAL HE SAID THE ENERGY LEVY IS DESIGNED TO TAKE IN 22 BILLION A YEAR WHEN IT'S FULLY IN EFFECT BY FISCAL 1996 IN THE ALUMINUM BUSINESS ENERGY ACCOUNTS FOR 30 TO 40 OF TOTAL COSTS AND IS THE SINGLE LARGEST EXPENSE IF HIGHER ALUMINUM PRICES RESULT US ALUMINUM COMPANIES COULD LOSE GROUND TO FOREIGN PRODUCERS AND TO COMPETING MATERIALS THAT REQUIRE LESS ENERGY TO MAKE STEEL COMPANIES DON'T HAVE AS MUCH TO WORRY ABOUT FROM THEIR FOREIGN RIVALS BECAUSE THE COMMERCE DEPARTMENT JUST SLAPPED HEAVY TARIFFS ON IMPORTED STEEL F KENNETH IVERSON CHAIRMAN OF NUCOR CORP THE LARGEST US STEEL MINIMILL OPERATOR BELIEVES BOTH LARGE AND SMALL STEELMAKERS WILL BE ABLE TO PASS ALONG THE ENERGY COSTS TO CUSTOMERS YOU CAN'T EXPECT INTEGRATED STEEL TO TAKE MORE LOSSES JUST BECAUSE ENERGY PRICES ARE HIGHER HE SAYS UNDER THE CLINTON PROPOSAL OIL WOULD BE TAXED AT MORE THAN DOUBLE THE RATE FOR COAL AND NATURAL GAS TO DISCOURAGE CONSUMPTION AS A RESULT THE TRANSPORTATION INDUSTRY WILL TAKE AN ESPECIALLY BIG HIT THE TRUCKING INDUSTRY SAYS THE ENERGY TAX WILL RAISE ITS ANNUAL GASOLINE AND DIESEL BILL BY 3 BILLION A YEAR THE AIRLINE INDUSTRY ALREADY IN A SLUMP WOULD SEE ITS JETFUEL COSTS INCREASE BY AN ESTIMATED 10 TO 15 CENTS A GALLON THAT WOULD ADD 14 BILLION TO 21 BILLION IN ADDITIONAL ANNUAL FUEL COSTS WHEN THE TAX IS FULLY IMPLEMENTED THE AIR TRANSPORT ASSOCIATION SAYS CHRIS CHIAMES A SPOKESMAN FOR THE ASSOCIATION SAID TICKET PRICES WOULD RISE ABOUT 27 IF THE INCREASES WERE PASSED ON TO CUSTOMERS BUT HE ADDED THAT WITH TODAY'S TOUGH PRICE COMPETITION THE AIRLINES MIGHT NOT BE ABLE TO DO THAT DURING THE SECOND HALF OF 1990 THE INDUSTRY SPENT 4 BILLION MORE FOR JET FUEL BECAUSE OF IRAQ'S INVASION OF KUWAIT HE SAID BUT WASN'T ABLE TO PASS THE COSTS ON TO CONSUMERS THE TREASURY SAID ITS ANALYSIS OF THE NEW ENERGY TAX TURNS UP ONLY A MODEST DISPARITY AMONG REGIONS USING REGIONS DEFINED BY THE CENSUS BUREAU THE TREASURY SAID THE HARDESTHIT AREA WOULD BE NEW ENGLAND WHERE THE TAX IS ESTIMATED AT ABOUT 103 A PERSON ONCE IT IS FULLY PHASED IN IN THE REGION HIT LEAST HARD WHICH INCLUDES KENTUCKY TENNESSEE MISSISSIPPI AND ALABAMA THE ANNUAL ENERGYTAX TAB WOULD BE 80 A PERSON MEASURED AGAINST PERCAPITA INCOME THE TREASURY NOTED THE DISPARITIES ARE EVEN NARROWER BECAUSE THE REGIONS THAT PAY MORE TEND TO BE THOSE WITH HIGHER INCOMES THE TAX'S MOST DIRECT EFFECT OF COURSE WILL BE ON ENERGY PRODUCERS UNDER THE PLAN COAL AND NATURAL GAS WOULD BE TAXED AT 26 CENTS PER MILLION BTUS WHILE OIL WOULD BE TAXED AT 60 CENTS PER MILLION BTUS THAT MEANS A TAX OF 557 A SHORT TON OF COAL 347 A BARREL OF OIL AND 26 CENTS FOR A THOUSAND CUBIC FEET OF NATURAL GAS AT A BREAKFAST MEETING WITH REPORTERS VICE PRESIDENT ALBERT GORE SAID THAT THE ADMINISTRATION DESIGNED THE TAX IN PART TO RETAIN THE ADVANTAGE THAT NATURAL GAS HAS IN ITS PRICE OVER OIL HE ALSO SAID THAT THE TAX FALLS WAY DISPROPORTIONATELY ON THE MARKET FOR IMPORTED OIL RATHER THAN DOMESTIC SECRETARY BENTSEN SPEAKING TO REPORTERS IN TEXAS ESTIMATED THAT THE BTU TAX WOULD REDUCE OIL IMPORTS BY 350000 BARRELS A DAY BY 1997 BUT THE DOMESTIC PETROLEUM COUNCIL WHICH REPRESENTS INDEPENDENT OIL AND GAS PRODUCERS DISAGREES STRESSING A PREFERENCE FOR A STRAIGHT OILIMPORT FEE NO ONE DOUBTS THAT GASOLINE PRICES WOULD GO UP UNDER THE PLAN BUT THERE'S NO AGREEMENT ON HOW MUCH THE OIL INDUSTRY CLAIMS THAT THE TAX WOULD RAISE THE COST OF GASOLINE BY 10 TO 15 CENTS A GALLON THE ADMINISTRATION ESTIMATES AN INCREASE OF 75 CENTS A GALLON WILLIAM O'KEEFE EXECUTIVE VICE PRESIDENT OF THE AMERICAN PETROLEUM INSTITUTE SAYS THE 75 CENT ESTIMATE FAILS TO RECOGNIZE THAT IT'S EASIER FOR THE OIL INDUSTRY TO PASS ADDED COSTS ALONG TO AUTOMOBILE DRIVERS THAN TO MANUFACTURERS WHO OFTEN HAVE THE OPTION OF SHIFTING TO CHEAPER FUELS PETROCHEMICAL FEEDSTOCKS USED TO MAKE SUCH PRODUCTS AS SULFA DRUGS AND FERTILIZERS WOULD NOT FALL UNDER THE NEW BTU TAX BUT MR O'KEEFE SAYS THESE PRODUCTS TOO MAY INCREASE IN PRICE BECAUSE CONSIDERABLE FUEL IS CONSUMED IN MANUFACTURING THEM BUT RONALD RIZZUTO A PROFESSOR OF FINANCE AT THE UNIVERSITY OF DENVER CONTENDS THAT THE IMPACT ON THE OIL INDUSTRY WILL BE NEGLIGIBLE BECAUSE SO MANY COMPANIES SELL BOTH OIL AND NATURAL GAS AS THEY SELL LESS OF ONE HE ARGUES OIL COMPANIES WILL JUST SELL MORE OF THE OTHER 9302190141 930219 FRANKNESS OF EUROPEAN DOCTORS DIFFERS FROM ONE COUNTRY TO NEXT SURVEY SHOWS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IF YOU HAD DEVELOPED A POTENTIALLY FATAL CANCER WOULD YOUR DOCTOR TELL YOU THE TRUTH ABOUT IT IN EUROPE THAT DEPENDS ON WHERE YOU LIVE ACCORDING TO A NEW SURVEY OF EUROPEAN DOCTORS IN SOUTHERN AND EASTERN EUROPE MANY PRACTICING GASTROENTEROLOGISTS SPECIALISTS IN AILMENTS OF THE DIGESTIVE TRACT SAID IN A SURVEY THAT THEY WOULDN'T TELL THEIR PATIENTS THE FULL TRUTH TO AVOID UNNECESSARY UPSET THESE DOCTORS SAID THEY WOULDN'T EVEN MENTION CANCER BUT WOULD DESCRIBE THE PATIENT'S AILMENT IN SUCH EUPHEMISMS AS AN ULCER OR INFLAMMATION THEN THEY WOULD TELL THE PATIENT'S SPOUSE THE TRUTH IN PRIVATE BY CONTRAST IN NORTHERN EUROPE DOCTORS WERE INCLINED TO BE FRANK ALBEIT IN AS UPBEAT A MANNER AS POSSIBLE THE SURVEY PUBLISHED IN THIS WEEK'S ISSUE OF THE LANCET A BRITISH MEDICAL JOURNAL CONFIRMS A FACT OF LIFE AND ILLNESS THAT ANY SEASONED TRAVELER KNOWS WELL BEDSIDE MANNERS DIFFER WILDLY AROUND THE WORLD THOUGH SYSTEMATIC RESEARCH ON THE SUBJECT IS SCARCE ONE 1981 SURVEY FOUND 27 OF JAPANESE DOCTORS SAYING THEY WOULD NEVER TELL THEIR PATIENTS THE TRUTH ABOUT CANCER BY CONTRAST US DOCTORS ARE GENERALLY TAUGHT TO BE UNDERSTANDING BUT FRANK WITH MOST CANCER PATIENTS IN FACT ONE US STUDY IN 1979 FOUND THAT 97 OF PHYSICIANS AT ONE LARGE URBAN HOSPITAL FAVORED FRANKNESS TO CANCER PATIENTS ACCORDING TO ONE OF THE NEW EUROPEAN STUDY'S AUTHORS DR PETER SINGER OF THE UNIVERSITY OF TORONTO'S CENTER FOR BIOETHICS BUT IT WASN'T ALWAYS THAT WAY HE NOTES AT THE SAME US HOSPITAL IN 1961 90 OF THE DOCTORS SURVEYED PREFERRED CONCEALING THE DIAGNOSIS SUGGESTING THAT MEDICAL ATTITUDES CHANGE OVER TIME BUT THE EUROPEAN SURVEY ORGANIZED BY DOCTORS IN DENMARK ITALY AND CANADA FOR THE WORLD ORGANIZATION OF GASTROENTEROLOGY PROVIDES RARE INSIGHTS INTO THE WAY DOCTORS IN DIFFERENT COUNTRIES WRESTLE WITH ONE OF THEIR MOST DIFFICULT PROFESSIONAL PROBLEMS HOW TO BREAK BAD NEWS CANCER CASES POSE A SPECIAL DILEMMA WITH DOCTORS DIVIDED ON WHETHER A PATIENT'S RIGHT TO THE TRUTH IS OUTWEIGHED BY THE POSSIBILITY THAT IT WOULD DEPRESS THE PATIENT AND WORSEN MATTERS TO SAMPLE OPINIONS ON THE ISSUE THE RESEARCHERS SENT QUESTIONNAIRES TO GASTROENTEROLOGISTS AROUND EUROPE AND GOT 260 REPLIES AMONG OTHER THINGS THE SPECIALISTS WERE ASKED HOW THEY WOULD HANDLE A PATIENT WITH COLON CANCER LATER FOUND TO BE INCURABLE WOULD THEY TELL THE PATIENT OR THE SPOUSE OF THE INITIAL DIAGNOSIS AND LATER HOPELESS PROGNOSIS THOUGH THE SURVEY WASN'T SYSTEMATIC ENOUGH TO GO BEYOND SUGGESTING REGIONAL TRENDS AROUND EUROPE THE FRANKEST DOCTORS WERE IN SCANDINAVIA BRITAIN AND THE NETHERLANDS WHILE ONLY TWO OF THE DOCTORS RESPONDING FROM EASTERN EUROPE SAID THEY WOULD VOLUNTEER THE INITIAL CANCER DIAGNOSIS TO THEIR PATIENTS MANY SOUTHERN AND EASTERN EUROPEAN DOCTORS SAID THEY WOULD BE EVASIVE EVEN IF ASKED DIRECTLY BY THE PATIENT INDEED ONE POLISH DOCTOR THOUGHT THE WHOLE SITUATION IMPROBABLE MY PATIENTS DON'T USUALLY ASK SUCH QUESTIONS HE SAID SUCH COMMENTS SAYS OLE OESTERGAARD THOMSEN THE STUDY'S LEAD AUTHOR AND A GASTROENTEROLOGIST AT THE UNIVERSITY OF COPENHAGEN'S HERLEV HOSPITAL SUGGEST THAT DOCTORS AROUND THE WORLD MAY BE JUST BEHAVING THE WAY THEIR PATIENTS EXPECT THEM TO BEHAVE RATHER THAN MAKING WEIGHTY MORAL JUDGMENTS 9302190140 930219 LETTERS TO THE EDITOR YOU TOO CAN BE A SPACE CADET IN HER JAN 28 LEISURE & ARTS ARTICLE EARTHBOUND ASTRONAUT CONFESSIONS OF A SPACE CADET AMY GAMERMAN WRITES TOTAL WEIGHTLESSNESS SOMETHING EVERY GIRL SHOULD EXPERIENCE ONCE IN HER LIFE WAS WHAT I WAS AFTER SAME HERE I WAS ABLE TO REALIZE THIS DREAM COURTESY OF BELIEVE IT OR NOT THE RUSSIANS ANYTHING FOR A HARD CURRENCY BUCK IN JUNE 1992 I TRAVELED TO RUSSIA'S COSMONAUT TRAINING FACILITY AT ZVEUZDNY GORODOK STAR CITY TO SAMPLE ITS TRAINING PROGRAM THIS INCLUDED MIR AND SOYUZ TM SIMULATORS MEDICAL TESTS ALTITUDE CHAMBER CENTRIFUGE UP TO FOUR GS SPACESUITS LECTURES AND BEST OF ALL WEIGHTLESSNESS TRAINING ABOARD AN IL76 AIRCRAFT WE DID A SERIES OF 10 DIVES EACH OF WHICH INDUCED 20 TO 30 SECONDS OF WEIGHTLESSNESS I CAN TELL YOU THAT IT IS WONDERFUL UNLIKE SPACE CAMP OR THE NEW VISITOR CENTER IN HOUSTON WE WERE ON THE REAL STUFF THE SAME EQUIPMENT USED BY THE COSMONAUTS I MET NUMEROUS COSMONAUTS INCLUDING VLADIMIR TITOV WHO SPENT 366 DAYS IN ORBIT AND IS NOW IN HOUSTON TRAINING FOR A SHUTTLE MISSION 9302190139 930219 MILES'S RESEARCH SPENDING PITTSBURGH MILES INC SAID IT WILL SPEND 490 MILLION ON RESEARCH AND DEVELOPMENT THIS YEAR UP 12 FROM 1992 THE COMPANY SAID IT WILL FOCUS SPENDING ON HEALTH CARE POLYMERS AND COATINGS AGRICULTURE AND IMAGING TECHNOLOGIES THE ABILITY TO ACHIEVE OUR LONGTERM GOALS IS CLEARLY TIED TO THE PRODUCTIVITY OF OUR RESEARCH AND DEVELOPMENT PROGRAMS HELGE H WEHMEIER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT 9302190138 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CLOSING THE MONEY GAP HOPE OR HYPE TWO EXPERTS DEBATE WHETHER THE URBAN ENTERPRISE ZONE IS AN IDEA WHOSE TIME HAS COME OR SHOULD NEVER BE BY TIMOTHY NOAH AND RICK WARTZMAN OVER THE PAST COUPLE OF YEARS MUCH OF THE DEBATE ABOUT REVIVING OUR INNER CITIES HAS FOCUSED ON ONE PARTICULAR STRATEGY ENTERPRISE ZONES IT'S AN IDEA SAY ITS PROPONENTS WHOSE TIME HAS COME IMPORTED FROM GREAT BRITAIN THE CONCEPT CALLS FOR GOVERNMENTS TO PROVIDE TAX BREAKS AND REGULATORY RELIEF FOR BUSINESSES THAT LOCATE IN POOR NEIGHBORHOODS SUCH URBAN ENTERPRISE ZONES HAVE LONG BEEN SUPPORTED BY REPUBLICANS AND IN RECENT YEARS HAVE ALSO WON SUPPORT FROM MANY DEMOCRATS INCLUDING BILL CLINTON BUT WHILE THE IDEA HAS BEEN TRIED IN MANY STATES NO ENTERPRISEZONE LAW HAS BEEN PASSED AT THE FEDERAL LEVEL AND DETRACTORS SAY THAT IS HOW IT SHOULD BE ENTERPRISE ZONES THEY SAY WOULD BLEED THE TREASURY AND ENRICH BUSINESSES WITHOUT NECESSARILY IMPROVING THE LIVES OF LOWINCOME PEOPLE IN AN EFFORT TO SHED LIGHT ON THE MERITS AND DRAWBACKS OF THE ENTERPRISEZONE CONCEPT THE WALL STREET JOURNAL INVITED TWO WASHINGTON DC SCHOLARS TO PARTICIPATE IN A DEBATE ON THE SUBJECT THE DEBATE WAS MODERATED BY WALL STREET JOURNAL STAFF REPORTERS TIMOTHY NOAH AND RICK WARTZMAN ARGUING IN FAVOR OF ENTERPRISE ZONES IS STUART BUTLER OF THE HERITAGE FOUNDATION WHO IS GENERALLY CREDITED WITH BRINGING THE ENTERPRISEZONE IDEA TO THE US MR BUTLER HAS WORKED WITH SEVERAL POLITICIANS INCLUDING FORMER HOUSING AND URBAN DEVELOPMENT SECRETARY JACK KEMP TO CHAMPION ENTERPRISE ZONES ARGUING AGAINST ENTERPRISE ZONES IS GEORGE PETERSON OF THE URBAN INSTITUTE WHILE NOT OPPOSED TO THE IDEA IN ALL CIRCUMSTANCES MR PETERSON IS SKEPTICAL OF PROPONENTS' CLAIMS AND HE BELIEVES THAT OTHER POVERTYFIGHTING STRATEGIES ARE MORE EFFECTIVE HERE ARE EXCERPTS FROM THE DISCUSSION THE WALL STREET JOURNAL MR BUTLER WHY DO WE NEED ENTERPRISE ZONES STUART BUTLER ENTERPRISE ZONES CONSTITUTE ONE ELEMENT ONE CRUCIAL ELEMENT OF A MULTIELEMENT STRATEGY FOR DEALING WITH THE PROBLEMS OF THE INNER CITY WHEN YOU'RE LOOKING AT HIGH UNEMPLOYMENT AND THE BREAKDOWN OF COMMUNITIES IN THE INNER CITIES YOU'VE GOT TO DO SEVERAL THINGS ONE THING YOU HAVE TO DO IS TO HAVE JOBS AVAILABLE IN THOSE AREAS AND YOU'VE GOT TO ENCOURAGE COMPANIES TO START UP SMALL FIRMS ESPECIALLY IN THESE AREAS ENTERPRISE ZONES ARE PRIMARILY DESIGNED TO DO THAT THE SECOND THING YOU'VE GOT TO DO IS TO HAVE PEOPLE WILLING TO TAKE JOBS THAT ARE AVAILABLE CREATED BY SUCH THINGS AS ENTERPRISE ZONES AND THE THIRD THING YOU'VE GOT TO DO IS TO ADDRESS THE VERY COMPLICATED SOCIAL BREAKDOWN WITHIN THE INNER CITIES AND THAT INVOLVES A NUMBER OF OTHER APPROACHES IF YOU HAVE ENTERPRISE ZONES THAT'S NOT THE ONLY THING YOU HAVE TO DO BUT IF YOU GO AHEAD WITHOUT PUTTING INTO PLACE THE KINDS OF MECHANISMS ENSHRINED IN THE ENTERPRISE ZONES THEN OTHER THINGS YOU DO ARE LESS LIKELY TO BE SUCCESSFUL WSJ YOU SEEM TO BE SUGGESTING THAT ENTERPRISE ZONES ARE NO MAGIC BULLET MR BUTLER NOBODY HAS EVER SERIOUSLY ARGUED THAT ENTERPRISE ZONES ARE A PANACEA TO THE INNERCITIES ISSUE THEY ADDRESS ONE VERY IMPORTANT PART OF THE PROBLEM WHICH IS THE COLLAPSE OF THE ECONOMY OF THE INNER CITIES AND PARTICULARLY THE JOBCREATING BUSINESSES THEY ARE DESIGNED TO DEAL WITH THAT BUT I DON'T THINK ANYBODY SERIOUSLY ARGUES THAT THAT'S THE ONLY THING THAT'S WRONG IN PLACES LIKE THE SOUTH BRONX OR SOUTH CENTRAL LOS ANGELES BUT THE FACT IS THAT IF YOU DON'T DO SOMETHING TO MAKE IT EASIER FOR ENTERPRISES TO LOCATE IN THOSE AREAS THEN OTHER THINGS YOU DO ARE NOT GOING TO WORK EITHER WSJ ENTERPRISE ZONES HAVE MORE OF A SHOT AT BECOMING REALITY THAN SOME OF THE OTHER THINGS YOU'VE MENTIONED WHAT IS LIKELY TO RESULT IF THE ENTERPRISE ZONES ARE PUT IN PLACE WITHOUT THESE OTHER THINGS HAPPENING MR BUTLER FIRST OF ALL I AGREE THAT THERE'S A GREAT OPPORTUNITY TO ACTUALLY PUT ENTERPRISE ZONES INTO PLACE THERE IS BROAD BIPARTISAN SUPPORT FOR IT THERE'S STRONG SUPPORT IN COMMUNITIES FOR REDUCING THE TAX AND REGULATORY BARRIERS TO BUSINESS FORMATION I AGREE THAT THE OTHER KINDS OF STEPS THAT ARE NECESSARY ARE NOT AS LIKELY TO BE PUT INTO PLACE QUICKLY AND THEREFORE THAT WILL BLUNT THE EFFECTIVENESS OF A FEDERAL ENTERPRISEZONE APPROACH NO QUESTION ABOUT IT BUT THAT'S NOT A CRITICISM OF ENTERPRISE ZONES THAT'S SIMPLY SAYING THAT YOU REALLY NEED TO MOVE FORWARD ON SEVERAL FRONTS WSJ MR PETERSON WHAT LEGITIMATE OBSTACLES HAVE PREVENTED ENTERPRISE ZONES FROM PASSING INTO FEDERAL LAW SO FAR AFTER ALL THIS IS AN ISSUE THAT'S BEEN ON THE TABLE SINCE 1982 ARE THERE ANY GOOD REASONS WHY ENTERPRISE ZONES HAVEN'T BECOME LAW YET GEORGE PETERSON WE'VE HAD A DECADE OF EXPERIENCE MORE THAN A DECADE OF ENTERPRISE ZONES AT THE STATE LEVEL AND IN GREAT BRITAIN AND WE'VE LEARNED THE ANSWERS TO A LOT OF QUESTIONS I THINK THERE'S REALLY NO POINT IN LAUNCHING A FEDERAL DEMONSTRATION PROGRAM THERE'S JUST NOT THAT MUCH LEFT TO DEMONSTRATE WSJ WHAT ARE SOME OF THE SHORTCOMINGS OF ENTERPRISE ZONES COMPARED TO OTHER SOLUTIONS MR PETERSON ONE OF THE ORIGINAL HYPOTHESES WAS THAT IF YOU JUST CREATE LOCAL SANCTUARIES THAT WERE FREE FROM GOVERNMENTAL REGULATION THERE WOULD BE A FLOWERING OF PRIVATE INVESTMENT AND FRANKLY WE'VE TESTED THAT HYPOTHESIS AND HAVE REALLY SHOWN THAT THERE'S VERY LITTLE TO IT AT THE STATE LEVEL I THINK IT'S AN ADEQUATE TEST OF WHAT WOULD HAPPEN AT THE FEDERAL LEVEL I THINK WE'VE FOUND THAT WE CAN'T GAIN SOCIAL AGREEMENT ON EXEMPTING ZONES FROM MINIMUM WAGE OR HEALTH OR SAFETY STANDARDS THERE'S JUST NOT A CONSENSUS TO EXEMPT ANY DEFINED ZONES FROM THOSE KINDS OF CONTROLS AND THE REMAINING CONTROLS WE KNOW THAT BUSINESSES JUST DON'T PAY MUCH ATTENTION TO THEM WSJ WHAT ABOUT THE TAX RELIEF GRANTED WITHIN ENTERPRISE ZONES MR PETERSON IN TERMS OF JOBS AND TAX INCENTIVES ON BALANCE IT TURNS OUT TO BE A PRETTY EXPENSIVE WAY TO CREATE JOBS SPECIFIC STUDIES ARE ALL OVER THE LOT BUT ON BALANCE THE RANGE IS 30000 TO 40000 OF UPFRONT COSTS PER JOB CREATED AND THAT'S UP IN THE RANGE OF THE MORE EXPENSIVE DEVELOPMENT PROGRAMS MR PETERSON COMPARED TO THE FEDERAL URBAN DEVELOPMENT ACTION GRANTS IN THE PAST COMPARED TO ANY OF THE TARGETED JOB TAX CREDITS EITHER LOCAL DEVELOPMENT STRATEGIES OR FEDERAL TAX STRATEGIES IN TERMS OF SMALLBUSINESS CREATION I THINK THERE'S A RECORD OF MODERATE SUCCESS THERE BETWEEN A QUARTER AND A THIRD OF THE JOBS CREATED IN MOST OF THESE ZONES HAVE COME FROM NEW BUSINESSES BUT WHEN YOU ASK WHY YOU FIND OUT THAT IT HAS ALMOST NOTHING TO DO WITH TAX INCENTIVES AND TAX BREAKS ONE OF THE IRONIES IS THAT IT HAS TO DO INSTEAD WITH HOW ACTIVELY THE ZONE IS MANAGED HOW LARGE THE STAFF IS AND THE KIND OF SUPPORT SERVICES THAT ARE OFFERED WITHIN THE ZONE IN TERMS OF TECHNICAL ASSISTANCE AND LEGAL ASSISTANCE I HAVE NO QUARREL WITH ENTERPRISE ZONES AT ALL AS PART OF A LOCAL DEVELOPMENT STRATEGY THEY'VE HAD SOME SUCCESS THEY'RE ANOTHER TOOL IT'S JUST A QUESTION OF WHETHER THERE'S ENOUGH FROM A FEDERAL INVESTMENT POINT OF VIEW THESE ARE LOCAL DECISIONS MR BUTLER LET ME RESPOND TO EACH OF THOSE POINTS BECAUSE THEY'RE ALL CENTRAL TO THE RATIONALE FOR AN ENTERPRISE ZONE THERE ARE ABOUT 37 STATES AND THE DISTRICT OF COLUMBIA THAT HAVE VARIOUS VERSIONS OF ENTERPRISE ZONES THEY DIFFER MARKEDLY FROM ONE STATE TO ANOTHER AND I THINK THERE'S A LOT OF IMPORTANT EVIDENCE THAT COMES OUT OF THAT WITH REGARD TO REGULATION I THINK THAT THE EVIDENCE IS VERY STRONG THAT FAIRLY ELEMENTARY STEPS TO REDUCE REGULATIONS FOR NEW STARTUP FIRMS ARE VERY EFFECTIVE AT SPEEDING UP THE PROCESS OF REDEVELOPMENT ONESTOP SHOPPING AS IT WERE WITH PERMITS ZONING VARIANCES THESE KINDS OF THINGS WHICH ARE MINOR WHEN IT COMES TO A LARGE FIRM BUT FOR A SMALL STARTUP FIRM WITH LIMITED CAPITAL BEING DELAYED FOR THREE MONTHS TO GET AN EPA PERMIT TO REDEVELOP A SITE CAN MEAN THE END OF A BUSINESS OR NEVER STARTING IN THE FIRST PLACE WSJ DO YOU BELIEVE THAT ENTERPRISEZONE BENEFITS SHOULD ONLY GO TO SMALL FIRMS MR BUTLER I THINK THEY SHOULD BE PRIMARILY DIRECTED AT SMALL FIRMS WHEN YOU LOOK AT THE WHOLE PHILOSOPHY AND STRATEGY IN THE ENTERPRISE ZONE IT IS NOT A STRATEGY DESIGNED TO INFLUENCE LOCATION DECISIONS OF FORTUNE 500 COMPANIES IT'S DESIGNED TO SPUR PREDOMINANTLY NEW ENTERPRISES WHICH MEANS SMALL ENTERPRISES ENTERPRISES THAT WILL GENERALLY RECRUIT LOCALLY AND RECRUIT LOWERSKILLED PEOPLE THAT'S WHY WHEN WE LOOK AT REGULATIONS WE'RE PRIMARILY INTERESTED AT LOOKING AT SPEEDING UP THE PERMITTING PROCEDURES AND ZONING PROCEDURES AT THE LOCAL LEVEL AND CERTAINLY NOT AFFECTING BASIC WORK RULES THAT GEORGE SUGGESTED SUCH AS HEALTH AND SAFETY WHEN YOU LOOK AT TAX ISSUES YOU'RE REALLY TALKING ABOUT TWO TYPES OF TAX STRATEGIES BOTH AIMED AT ADDRESSING THE ACTUAL CONCERNS OF SMALL BUSINESSES ESPECIALLY NEW BUSINESSES THOSE PEOPLE ARE CONCERNED ABOUT BASICALLY TWO THINGS ONE IS THE DAYTODAY OPERATING COSTS OF RUNNING A BUSINESS AND HIRING PEOPLE THAT MEANS YOU FOCUS AT THE STATE AND LOCAL LEVEL ON SUCH THINGS AS PROPERTYTAX RELIEF IT ALSO MEANS YOU FOCUS ON THE COST OF HIRING PARTICULARLY DISADVANTAGED LOCAL WORK THE NEW JERSEY STATE ZONE FOR EXAMPLE DOES THAT SO DOES THE ZONE LOCATED IN PHILADELPHIA IT GIVES SPECIFIC TAX BREAKS TO COMPANIES THAT HIRE PEOPLE WHO ARE LOWERINCOME AND LONGTERM UNEMPLOYED THE OTHER TAX STRATEGY IS ACCESS TO CAPITAL THROUGH TAX INCENTIVES THAT WOULD ENCOURAGE INVESTORS TO PUT THEIR MONEY INTO SMALL FIRMS TO MAKE CAPITAL AVAILABLE TO SMALL FIRMS HENCE JACK KEMP'S EMPHASIS ON CAPITALGAINS RELIEF AND THE HOUSE ENTERPRISEZONE BILL THAT PASSED AND WAS VETOED BY PRESIDENT BUSH HAD A 50 EXCLUSION OF CAPITAL GAINS THIS IS DESIGNED TO INFLUENCE THE PERSON WHO'S THINKING OF HIGHRISK INVESTMENT IN A HIGHRISK AREA MR PETERSON IF WE'RE TALKING ABOUT ONESTOP SHOPPING FOR ZONING EXCEPTIONS OR PERMITTING THERE'S REALLY NO LOGIC I CAN SEE FOR LIMITING THOSE TO ENTERPRISE ZONES MOST LOCAL GOVERNMENTS IN FACT ARE TRYING TO SIMPLIFY THE REGULATORY CONTROLS FOR THE SMALLBUSINESS SECTOR AS A WHOLE ON THE CAPITALGAINS QUESTION WHICH I THINK IS A VERY FUNDAMENTAL ONE I AGREE THAT FOR SMALL BUSINESSES CAPITAL CONSTRAINT THE ACCESS TO CAPITAL MARKETS IS ONE OF THE PRINCIPAL LIMITATIONS SOME 80 OF SMALL BUSINESSES GO OUT OF BUSINESS DURING THE FIRST THREE YEARS OF THEIR EXISTENCE BUT WHAT YOU'RE GOING TO BE DOING IS BRINGING IN VENTURE CAPITALISTS FROM OUT OF THE AREA TO INVEST IN SMALL BUSINESS THAT'S NOT ENCOURAGING INDIGENOUS BUSINESS CREATION THAT'S NOT EMPOWERMENT OF LOCAL RESIDENTS TO CREATE SMALL BUSINESSES THAT A LOT OF THE RHETORIC OFTEN IMPLIES THE ALTERNATIVE IS TO GET THAT ACCESS TO CAPITAL MUCH MORE DIRECTLY ALTERNATIVES SUCH AS INVESTMENT THROUGH LENDING TO COMMUNITYDEVELOPMENT BANKS SO THAT THERE'S SEED CAPITAL AVAILABLE FOR GENUINELY LOCAL BUSINESS STARTUPS I THINK WE NEED A MORE TARGETED CAPITAL RESPONSE TO FOSTER THAT KIND OF INDIGENOUS BUSINESS CREATION THAN A FEDERALLY INSPIRED CAPITALGAINS EXEMPTION WSJ DO YOU ENCOURAGE THAT BY THE HIRING OF ZONE RESIDENTS MR PETERSON WE NEED TO BE CLEAR WHAT WE'RE TALKING ABOUT IF WE'RE TALKING ABOUT THE BENEFITS REACHING DOWN TO THE RESIDENTS BECAUSE AN INDIRECT LINKAGE EXISTS WHEREBY CAPITALGAINS TAX CUTS ARE GOING TO ACCELERATE SMALLBUSINESS INVESTMENT BY OUTSIDERS WHICH IS GOING TO ACCELERATE THE CREATION OF A NUMBER OF BUSINESS FIRMS WHICH IS GOING TO INCREASE EMPLOYMENT EVEN THOUGH THE SUBSIDIES THEMSELVES ARE MOSTLY TO THE INVESTMENT SIDE AND TO THE CAPITALFORMATION SIDETHAT HAS AN INDIRECT PAYOFF IN TERMS OF EMPLOYMENT IT DOESN'T REALLY ADDRESS THE QUESTION WHICH A LOT OF THE PUBLIC DISCUSSION HAS ADDRESSED ENCOURAGING SMALLBUSINESS OWNERSHIP SMALLBUSINESS FORMATION MR BUTLER I DISAGREE WITH THAT PROFOUNDLY NEW RISKY BUSINESSES HAVE ALWAYS TENDED TO BE SUPPORTED BY THOSE WHO ARE PREPARED TO TAKE RISKS AND CAPITALGAINS TAX CUTS HAVE ALWAYS BEEN A VERY BIG INCENTIVE OF COURSE ONE HAS TO BEAR IN MIND THAT YOU DON'T GET THE TAX BENEFITS UNLESS YOU HAVE A SUCCESSFUL INVESTMENT SO FROM THE TREASURY POINT OF VIEW TO GIVE CAPITALGAINS RELIEF ON INVESTMENTS MADE IN THE INNER CITIES DOESN'T PAY OUT UNLESS THERE'S SUCCESS AND SO FROM THE TREASURY'S POINT OF VIEW IT'S A FAR LESS RISKY APPROACH FOR THE TAXPAYER THAN DIRECT LOANS FOR SUBSIDIES TO BANKS TO LEND WSJ IF I AM AN EMPLOYEE OR POTENTIAL EMPLOYEE IN THE INNER CITY HOW CAN ENTERPRISE ZONES HELP ME HOW ARE THEY GOING TO GUARANTEE THAT I AM GOING TO GET HIRED AS OPPOSED TO SOMEBODY ELSE WHO DOESN'T NECESSARILY LIVE IN THE NEIGHBORHOOD MR BUTLER WELL YOU CAN HAVE OF COURSE ACTUAL REQUIREMENTS THAT AT LEAST A CERTAIN PERCENTAGE OF NEW RECRUITS OR EMPLOYEES COME FROM THAT AREA YOU CAN ALSO HAVE AN INCENTIVE THAT TENDS TO ENCOURAGE THAT WITH SMALLER FIRMS MOST SMALL FIRMS TEND TO RECRUIT BY PEOPLE WALKING IN OFF THE STREET SO THEY'RE GOING TO TEND TO PAY CLOSER ATTENTION TO LOCAL RESIDENTS ANYWAY MR PETERSON ONE OF THE FLAWS OF THE ENTERPRISEZONE APPROACH IN MY ESTIMATION IS THE ATTEMPT TO MATCH PEOPLE WITH WORK WITHIN THEIR IMMEDIATE GEOGRAPHICAL AREA ONLY WHAT'S GOING WRONG WITH METROPOLITAN JOB MARKETS AT THIS POINT IS THE INCREASING SEPARATION BETWEEN THE PLACES WHERE JOBS ARE BEING CREATED AND WHERE THE LOWSKILL HIGHUNEMPLOYMENT POPULATION LIVES JOBS ARE BEING CREATED FARTHER AND FARTHER OUT IN THE SUBURBS THE FIRST PRIORITY IS TO MATCH ZONE RESIDENTS TO THE ACTUAL JOB MARKET MR BUTLER THE NOTION OF TRYING TO UPGRADE THE SKILLS OF PEOPLE SO THEY CAN TAKE JOBS ELSEWHERE IN THE CITIES OR IN THE SUBURBS OR WHATEVER IS COMPLETELY COMPATIBLE WITH THE ENTERPRISEZONE IDEA AND IS A GENERAL STRATEGY THAT CERTAINLY I APPROVE OF AND EVERYBODY I KNOW THAT SUPPORTS ENTERPRISE ZONES SUPPORTS NEVERTHELESS WHEN WE'RE LOOKING AT THE HIGHLY BLIGHTED BROKEN COMMUNITIES IN AMERICA'S INNER CITIES THE SOLUTION TO THAT IS NOT ONLY TO PERMIT PEOPLE WHO WISH TO GO AND ACCEPT JOBS ELSEWHERE BUT TO RECOGNIZE THAT THOSE AREAS THEMSELVES HAVE TO BE TACKLED AS A SOCIOECONOMIC PROBLEM WITHIN THOSE COMMUNITIES WSJ THERE ARE SOME PEOPLE HOWEVER WHO SAY THAT TOO MUCH EMPHASIS IS PLACED ON TRYING TO SAVE CERTAIN DYING NEIGHBORHOODS AND NOT ENOUGH EMPHASIS IS PLACED ON TRYING TO SAVE THE PEOPLE IN THOSE NEIGHBORHOODS BY HELPING THEM TO EITHER LEAVE THOSE NEIGHBORHOODS ALTOGETHER OR GET JOBS OUTSIDE THOSE NEIGHBORHOODS HOW DO YOU RESPOND MR BUTLER THAT'S A LONGRUNNING DEBATE BETWEEN THOSE WHO SAY WE MUST FOCUS ON PEOPLE AND THOSE WHO SAY WE MUST FOCUS ON PLACES THE FACT IS THAT NEITHER SHOULD BE UNDERTAKEN TO THE EXCLUSION OF THE OTHER YES OF COURSE IT SHOULD BE POSSIBLE FOR PEOPLE TO MOVE FROM AREAS THAT THEY DISLIKE TO WHERE JOBS ARE IT SHOULD BE POSSIBLE FOR PEOPLE TO MOVE THEIR PLACE OF RESIDENCE EASILY FROM ONE PLACE TO ANOTHER THEY SHOULD BE ABLE TO CHOOSE SCHOOLS IN OTHER PLACES IF THEY WISH THERE ARE ALL KINDS OF STRATEGIES THAT I SUPPORT TO MAKE IT POSSIBLE FOR PEOPLE TO DECIDE WHERE THEY WANT TO LIVE AT THE SAME TIME THERE IS A REQUIREMENT TO RECOGNIZE THAT SOMETIMES COMMUNITIES CAN ENTER A DOWNWARD SPIRAL WHICH BEGINS TO GAIN SOME MOMENTUM AND SOME PEOPLE IN THESE AREAS REALLY DO WANT TO WORK BUT LOVE THEIR COMMUNITY AND THEREFORE WANT TO STAY IN THAT AREA WE DON'T HAVE TO WRITE OFF ENTIRE COMMUNITIES AND SAY WELL THE SOUTH BRONX WE JUST BASICALLY GIVE UP ON AND DRAW A LINE ABOUT IT AND SAY DON'T GO IN THERE WSJ LET'S TALK ABOUT POLITICS ONE WORRY SOME PEOPLE HAVE ABOUT ENTERPRISE ZONES IS THAT POLITICIANS SIMPLY WILL NOT BE ABLE TO KEEP ENTERPRISE ZONES CONFINED TO THEIR ORIGINAL PARAMETERS IN LOUISVILLE FOR EXAMPLE THERE'S AN ENTERPRISE ZONE THAT ENCOMPASSES AN AREA LARGER THAN NEWARK NJ AND INCLUDES SOME AREAS WHERE THERE ARE NO RESIDENTS AT ALL HOW DO YOU KEEP ENTERPRISE ZONES TARGETED TO LOWINCOME COMMUNITIES THAT BY DEFINITION ARE POLITICALLY POWERLESS MR BUTLER ONE ANSWER TO THAT IS THAT AS KEMP HAS SAID HE'D BE QUITE HAPPY WITH ONE ENTERPRISE ZONE FROM THE ATLANTIC TO THE PACIFIC AND FROM THE CANADIAN TO THE MEXICAN BORDER TO SOME EXTENT I AGREE WITH THAT BECAUSE TO A LARGE EXTENT WHAT IS GOOD IN ENTERPRISE ZONES IS A HEAVY DOSE OF WHAT IS GOOD GENERALLY HAVING A TAX POLICY AND A REGULATORY POLICY THAT ENCOURAGES SMALLBUSINESS FORMATION WOULD BE GOOD ANYWHERE IT'S ABSOLUTELY CRUCIAL AND ESSENTIAL AND I THINK WE CAN GET A BIPARTISAN MAJORITY FOR DOING THAT INTENSIVELY IN THE INNER CITIES WSJ MR PETERSON DO YOU HAVE ANY COMMENTS ON A COASTTOCOAST ENTERPRISE ZONE MR PETERSON I SEE THE DEFINING CHARACTERISTICS OF AN ENTERPRISE ZONE DISAPPEARING IN THIS CONVERSATION I HAVE DOUBTS ABOUT WHETHER YOU CAN MAINTAIN A HIGHLY TARGETED PROGRAM AT ALL THE PAST RECORD OF FEDERAL POLICY IN MAINTAINING TARGETED URBAN PROGRAMS IS VERY DISCOURAGING IN THE MODEL CITIES PROGRAM OF THE 1960S YOU STARTED OUT WITH THE IDEA OF HAVING THREE MODEL CITIES AND IN THE END I THINK IT WAS 120 THERE'S NO INHERENT RATIONALE AS TO WHERE YOU WOULD CUT OFF PROGRAMS AT THE FEDERAL SCALE WSJ ISN'T THAT EQUALLY TRUE OF URBAN DEVELOPMENT ACTION GRANTS WHICH YOU PRAISED EARLIER MR PETERSON I CARRY NO BRIEF FOR UDAGS WHATSOEVER THE ONLY TIME I MENTIONED UDAGS WAS TO CITE THE COST OF JOB CREATION I THINK UDAGS ARE ANOTHER EXAMPLE OF SOMETHING THAT'S MUCH BETTER LEFT TO A LOCAL TYPE OF PROGRAM MR BUTLER WHY ARE ENTERPRISE ZONES ANY DIFFERENT FROM EXACTLY THE SAME POLITICAL PROBLEM YOU FACE WITH OTHER APPROACHES MR PETERSON BECAUSE IF YOU'RE DESIGNING A TRAINING PROGRAM OR YOU'RE DESIGNING A CAPITALLENDING PROGRAM FOR SMALL BUSINESS YOU CAN FIX WHAT THE SCALE OF THE PROGRAM IS GOING TO BE AT THE OUTSET YOU CAN FIX THE KIND OF BENEFITS THAT ARE GOING TO BE OFFERED WSJ MR PETERSON SHOULD WE HAVE FEDERAL ENTERPRISE ZONES AT ALL MR PETERSON NO I THINK WITHIN THE CLAIMS OF A LIMITED FEDERAL BUDGET THAT THE PRIORITIES LIE ELSEWHERE I THINK THIS IS AN IDEA WHOSE TIME HAS COME AND PASSED AND THAT WE SHOULD BE MOVING ON TO OTHER PRIORITIES I THINK THAT WHAT WE HAVE IS ANOTHER GOOD STATE AND LOCAL TOOL THAT CAN BE PERFECTED AT THE STATE AND LOCAL LEVEL AND THAT THERE REALLY IS NOT A FEDERAL INTEREST IN SUPPORTING ENTERPRISE ZONES WSJ MR BUTLER HOW MUCH SHOULD WE SPEND ON ENTERPRISE ZONES MR BUTLER WE SHOULD SPEND AT LEAST AS MUCH AS IS NECESSARY TO SET UP ENTERPRISE ZONES IN THOSE COMMUNITIES AND THOSE CITIES THAT WE GENERALLY FEEL ARE IN DEEP DISTRESS AND POSE A SOCIAL AND ECONOMIC THREAT TO THE STABILITY OF THE CITIES IN WHICH THEY'RE LOCATED THE FEDERAL LEGISLATION THAT WAS VETOED EARMARKED ABOUT 2 BILLION FOR 50 ZONES I THINK THAT'S IN THE BALLPARK FOR WHAT IS REALISTIC BOTH IN NUMBER AND SCALE OF FEDERAL COMMITMENT WE HAVE 37 STATES THAT CHOSE TO GO THE ENTERPRISEZONE WAY AND I'M NOT AWARE OF ANY STATE THAT'S UNDONE AND CANCELED ITS ENTERPRISEZONE LEGISLATION IN ANY SIGNIFICANT WAY WHICH TELLS YOU SOMETHING 9302190137 930219 TECHNOLOGY & HEALTH SENATE VOTES TO BAR ALIENS WITH HIV FROM IMMIGRATING BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE DEALT PRESIDENT CLINTON A SETBACK BY VOTING TO BAR HIVINFECTED ALIENS FROM IMMIGRATING PERMANENTLY TO THE US THE 7623 ROLL CALL FOLLOWED A 5642 VOTE IN WHICH 19 DEMOCRATS JOINED REPUBLICANS IN DEFEATING EFFORTS BY MAJORITY LEADER GEORGE MITCHELL AND THE LABOR COMMITTEE LEADERSHIP TO PRESERVE SOME FLEXIBILITY FOR MR CLINTON IN DEALING WITH THE SENSITIVE ISSUE SINCE THE LAST YEARS OF THE REAGAN ADMINISTRATION THE US HAS FOLLOWED A POLICY OF BARRING IMMIGRANTS INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS OR HIV THAT CAUSES AIDS BUT MR CLINTON HAS INDICATED HE WOULD END THE EXCLUSION WHICH MOST DRAMATICALLY AFFECTS HAITIAN REFUGEES THE SENATE PROVISION WOULD REMOVE THIS DISCRETION BY CODIFYING THE CURRENT RESTRICTIONS INTO LAW AND THE AMENDMENT YESTERDAY WAS INCORPORATED IN A NATIONAL INSTITUTES OF HEALTH BILL THAT WAS LATER ADOPTED BY A 934 MARGIN IF YOU LOOK AT THE VOTE MARGIN CLINTON DOESN'T HAVE THAT MANY OPTIONS WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID AFTER THE SENATE VOTE HE'S GOING TO REVIEW IT I THINK THE SENATE MADE A PRETTY STRONG STATEMENT ABOUT IT THE NUMBER OF DEMOCRATIC DEFECTIONS ILLUSTRATES THE SENSITIVITY OF ANY AIDSRELATED ISSUE AND IS A HARBINGER OF THE PROBLEMS MR CLINTON STILL FACES IN HIS EFFORTS TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY IN THE SOMETIMES BITTER DEBATE LABOR COMMITTEE CHAIRMAN EDWARD KENNEDY D MASS SUGGESTED THAT THE HAITIAN CRISIS AFFECTING POOR BLACK PEOPLE ADDED A RACIAL OVERTONE AMONG THOSE WHO HAVE ASKED MR CLINTON TO LIFT THE BAN IS JESSE JACKSON WHO HAS BEGUN A HUNGER STRIKE IN SYMPATHY WITH HAITIAN REFUGEES DENIED ENTRANCE TO THE US 9302190136 930219 GONZALEZ SAYS ONE FEDERAL HAND DIDN'T KNOW WHAT THE OTHER WAS DOING ON IRAQ BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IRAQ'S SECRET MILITARY PROCUREMENT NETWORK BEGAN SHOPPING FOR US NUCLEAR WEAPONSRELATED ITEMS IN THE SPRING OF 1988 SETTING OFF ALARM BELLS IN SOME AGENCIES THAT WEREN'T HEARD BY OTHERS REP HENRY GONZALEZ ASSERTS IN A SPEECH ON THE HOUSE FLOOR THE TEXAS DEMOCRAT CHAIRMAN OF THE HOUSE BANKING COMMITTEE CHARGED THAT THE CENTRAL INTELLIGENCE AGENCY LEARNED OF THE BUYING OPERATION BUT FAILED TO WARN THE COMMERCE DEPARTMENT WHICH CONTINUED TO FOLLOW A BUSH ADMINISTRATION POLICY TO PROMOTE TRADE WITH IRAQ ONE GOVERNMENT FOOT WAS ON THE BRAKES ONE WAS ON THE ACCELERATOR ASSERTED REP GONZALEZ WHOSE EARLIER ACCUSATIONS RECENTLY PROMPTED THE CIA TO ADMIT THAT IT HAD MISHANDLED SOME OF THE INFORMATION IT HAD GATHERED ABOUT IRAQ YESTERDAY A CIA SPOKESMAN SAID THE AGENCY WOULDN'T COMMENT ON REP GONZALEZ'S LATEST ASSERTION WHICH CENTERS ON THE ACTIVITIES OF A LONDONBASED COMPANY EUROMAC LTD ACCORDING TO DOCUMENTS RELEASED BY MR GONZALEZ EUROMAC USED AN OFFICE IN PARAMUS NJ TO CONTACT A NUMBER OF US COMPANIES INCLUDING THE CORDIN CO BASED IN SALT LAKE CITY IN APRIL 1988 CORDIN WAS ASKED TO SELL AN EXOTIC 300000 CAMERA NORMALLY USED FOR PHOTOGRAPHING EXPLOSIONS USED TO TRIGGER NUCLEAR WEAPONS TO AN IRAQI AGENCY TO STUDY MATERIALS UNDER STRESS NATHAN NEBEKER A CORDIN ENGINEER SAID THE COMPANY WAS CONCERNED ABOUT THE ORDER FOR THE CAMERA WHICH IS CAPABLE OF TAKING PICTURES AT A SPEED OF 20BILLIONTHS OF A SECOND THE FIRM ALERTED THE ENERGY DEPARTMENT THE USUAL CUSTOMER FOR THE CAMERA AND WAS TOLD THE EXPORT WAS PROBABLY DESTINED FOR NUCLEAR WEAPONS RESEARCH AND SHOULD BE TURNED DOWN THE FOLLOWING MONTH A SECOND IRAQI BUYER APPROACHED MAXWELL LABORATORIES INC OF SAN DIEGO AND ORDERED MORE THAN 100 PULSEPOWERED CAPACITORS ELECTRONIC DEVICES THAT CREATE HIGHVOLTAGE BURSTS OF ENERGY THOUGH THE DEVICES ARE SOMEWHAT SIMILAR TO THOSE USED TO TRIGGER EXPLOSIVES IN A NUCLEAR WARHEAD THE SHIPMENT WAS APPROVED BY THE COMMERCE DEPARTMENT ACCORDING TO DOCUMENTS RELEASED BY REP GONZALEZ IN SEPTEMBER 1988 EUROMAC APPROACHED A SECOND CALIFORNIA COMPANY CSI TECHNOLOGIES INC OF SAN MARCOS AND ORDERED THE TYPE OF CAPACITOR USED IN ATOMIC BOMBS JERRY KOWALSKI THENPRESIDENT OF CSI SAID HE NOTIFIED BOTH THE CIA AND THE US CUSTOMS SERVICE ACCORDING TO REP GONZALEZ A CUSTOMS AGENT INVESTIGATING THE CSI CASE STUMBLED UPON THE MAXWELL ORDER IN EARLY 1989 AND ASKED THE COMPANY TO STOP THE SHIPMENT BY THAT TIME HOWEVER 40 CAPACITORS HAD BEEN SENT TO BAGHDAD IN BOTH CASES REP GONZALEZ ASSERTS THE COMMERCE DEPARTMENT APPROVED THE EXPORTS DESPITE THE FACT THAT THE DEVICES WERE ON THE STATE DEPARTMENT'S MUNITIONS CONTROL LIST CUSTOMS MOUNTED AN ELABORATE STING OPERATION IN THE CSI CASE THAT LATER LED TO THE CONVICTION OF SEVERAL IRAQIS IN ENGLAND INCLUDING ALI ASHOUR DAGHIR THE HEAD OF EUROMAC MR GONZALEZ SAID THAT THE CUSTOMS SERVICE HAD A HARD TIME GETTING ANY INFORMATION OUT OF THE CIA ON EUROMAC OR AL QAQA A SECRET IRAQI ATOMIC BOMB RESEARCH FACILITY THAT WAS THE ULTIMATE BUYER FOR THE DEVICES MEANWHILE THE COMMERCE DEPARTMENT CONTINUED TO ISSUE EXPORT LICENSES FOR MILITARYRELATED EQUIPMENT TO COMPANIES TRADING WITH IRAQ UP TO THE EVE OF IRAQ'S INVASION OF KUWAIT ON AUG 2 1990 FOLLOWING A SECRET DIRECTIVE SIGNED BY PRESIDENT BUSH TO PROMOTE TRADE WITH IRAQ IT APPROVED MORE THAN 400 EXPORT LICENSES THIS WAS STUPIDITY ON A GRAND SCALE SAID MR GONZALEZ A SPOKESMAN FOR THE COMMERCE DEPARTMENT'S BUREAU OF EXPORT ADMINISTRATION SAID IT IS INVESTIGATING MR GONZALEZ'S CHARGES WE ARE PROHIBITED BY LAW FROM DISCUSSING SPECIFICS OF LICENSING CASES HOWEVER WE LOOK FORWARD TO COOPERATING FULLY WITH THE HOUSE BANKING COMMITTEE A SPOKESMAN FOR MAXWELL SAID THAT ITS EXPERT ON CAPACITORS WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT 9302190135 930219 HEARD ON THE STREET CLINTON SPEECH KEEPS STOCKPICKERS BUSY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AN ENTREE OF TAX INCREASES WITH A SAUCE OF SPENDING CUTS MAY NOT SOUND LIKE WALL STREET'S DISH BUT YESTERDAY MONEY MANAGERS WERE SCRAMBLING TO FIND SPECIFIC STOCKS THAT COULD BENEFIT FROM PRESIDENT CLINTON'S ECONOMIC PLAN AFTER THE PRESIDENT'S SPEECH WEDNESDAY NIGHT PETER KEANE DIRECTOR OF THE STRATEGY GROUP AT INTERSTATE/JOHNSON LANE TOSSED AND TURNED IN BED AS HE MULLED OVER STOCKPICKING IDEAS FINALLY I GOT UP RAN TO THE FAMILY ROOM AND STARTED JOTTING DOWN NOTES HE SAYS MR CLINTON'S PLAN CERTAINLY PROVIDES STOCKPICKERS WITH PLENTY TO THINK ABOUT IF CONGRESS PASSES THE PLAN COMPANIES THAT PROVIDE VOCATIONAL EDUCATION COULD BENEFIT FROM THE NEW EMPHASIS ON WORKER TRAINING THE PROPOSED 7 TAX CREDIT FOR COMPANIES THAT INVEST IN NEW EQUIPMENT COULD HELP MAKERS OF MACHINES TOOLS AND COMPUTERS THE PROPOSED CRACKDOWN ON BUSINESSENTERTAINMENT EXPENSES COULD INDIRECTLY HELP MIDPRICED RESTAURANTS IF THE EXPENSEACCOUNT CROWD LOWERS ITS TASTES A NOTCH OR TWO AND SOME MANAGERS VIEW THE PROPOSED ENERGY TAX AS FAVORING THE NATURAL GAS INDUSTRY OVER OTHER FORMS OF ENERGY IN ADDITION A HOST OF INTERESTRATE SENSITIVE STOCKS SUCH AS MORTGAGE LENDERS COULD BENEFIT IF THE PLAN LEADS TO LOWER LONGTERM INTEREST RATES THAT'S WHAT MR CLINTON PREDICTED IN HIS SPEECH WEDNESDAY NIGHT AND YESTERDAY THE BOND MARKET SEEMED TO BEAR HIM OUT THE INTEREST RATE ON LONGTERM TREASURY BONDS FELL YESTERDAY TO THE LOWEST LEVEL IN MORE THAN 15 YEARS 702 TO BE SURE THERE WAS NO SHORTAGE OF POSSIBLE LOSERS FROM MR CLINTON'S PROPOSALS HIGHER TAXES COULD MEAN SLIGHTLY LESS MONEY IN CONSUMERS' HANDS PUTTING A BRAKE ON THE STILLFRAGILE RECOVERY SO PROSPECTS FOR RETAILING STOCKS AND MAKERS OF CONSUMER GOODS ARE VIEWED BY SOME MANAGERS AS A SHADE WEAKER THAN THEY WERE A MONTH OR SO AGO DEFENSE STOCKS AND DRUG STOCKS BOTH OF WHICH HAVE DECLINED FOR MONTHS DIDN'T GET ANY SOLACE FROM MR CLINTON'S ADDRESS TO CONGRESS BUT FOR WALL STREET'S STOCKPICKERS THE NAME OF THE GAME IS THE ETERNAL HUNT FOR INDIVIDUAL STOCKS THAT MIGHT GET A BOOST FROM THE LATEST PLAN RICHARD HOEY MANAGER OF DREYFUS GROWTH & INCOME FUND LIKES COUNTRYWIDE CREDIT INDUSTRIES MARGARETTEN FINANCIAL MASCO CORP CONTINENTAL HOMES HOLDING AND LENNAR THE FIRST TWO ARE MORTGAGE LENDERS MASCO SELLS BUILDING AND HOMEIMPROVEMENT PRODUCTS AND THE LATTER TWO ARE HOMEBUILDERS THE COMMON DENOMINATOR ALL FIVE BENEFIT FROM LOWER INTEREST RATES THE BOND MARKET IS SAYING GEE THEY'RE SERIOUS ABOUT CUTTING THE DEFICIT MR HOEY SAYS HE WOULDN'T BE SURPRISED TO SEE 30YEAR BOND RATES DIP BELOW 7 LIKE MOST MONEY MANAGERS MR HOEY FIGURES IT'S TOO SOON TO START BUYING DRUG STOCKS AND OTHER HEALTHCARE ISSUES I STUCK MY TOE IN A FEW DAYS AGO HE SAYS AND THEY CHOPPED IT RIGHT OFF WE MAY BE LATE IN THE HEALTHCARE BEAR MARKET BUT WE'RE NOT THROUGH WITH IT YET ROBERT STOVALL PRESIDENT OF STOVALL/TWENTYFIRST ADVISERS THINKS NATIONAL EDUCATION WILL BE A BIG BENEFICIARY OF MR CLINTON'S EMPHASIS ON WORKER TRAINING IT RUNS VOCATIONAL SCHOOLS AND PUBLISHES EDUCATIONAL MATERIALS MR STOVALL LIKES BOTH THE COMPANY'S STOCK AND ITS CONVERTIBLE BOND SINCE MR CLINTON REAFFIRMED HIS SUPPORT FOR A NORTH AMERICAN FREE TRADE ZONE MR STOVALL RECKONS TRUCKMAKER PACCAR WILL GET A BOOST ALMOST ALL MEXICAN FREIGHT IS MOVED BY TRUCK HE NOTES MEXICO'S RAILROADS HE SAYS HAVEN'T BEEN MODERNIZED AS MR STOVALL SEES IT NATURAL GAS WILL BE TAXED MORE LIGHTLY UNDER MR CLINTON'S PLAN THAN EITHER OIL OR COAL HE WOULD BUY GAS DISTRIBUTORS SUCH AS NEW JERSEY RESOURCES SOUTH JERSEY GAS ATLANTA GAS LIGHT WASHINGTON GAS LIGHT AND WASHINGTON ENERGY BUT HE WOULD SHUN OIL DISTRIBUTORS LIKE PETROLEUM HEAT & POWER HE WOULD ALSO STAY AWAY FROM THE WHOLE DEFENSE GROUP ANTICIPATING THAT THE BUDGET AX WILL CONTINUE TO SWING ON THE PENTAGON PEOPLE ACCUSTOMED TO EXPENSEACCOUNT DINING MAY MODERATE THEIR TASTES IF CONGRESS CUTS BUSINESSES' DEDUCTION FOR BUSINESS MEALS TO 50 FROM 80 MR STOVALL THINKS THAT COULD AID THE SHARES OF MODERATELY PRICED RESTAURANTS SUCH AS PANCHO'S MEXICAN BUFFET LUBY'S CAFETERIAS AND MORRISON RESTAURANTS FINALLY MR STOVALL NOTES THAT TAX PREPARERS H&R BLOCK STAND TO GAIN EVERY TIME THE TAX CODE GETS CHANGED STAN TRILLING A BROKER WITH PAINEWEBBER IN LOS ANGELES THINKS THE EDUCATIONANDTRAINING THEME WILL BE A REWARDING ONE HE LIKES DEVRY CANTERBURY EDUCATIONAL SERVICES AND NATIONAL EDUCATION MR TRILLING ALSO RECOMMENDS JOHN NUVEEN THE BIG MUNICIPAL BOND DEALER AND SPONSOR OF MUNICIPALBOND MUTUAL FUNDS INCOME FROM MUNICIPAL BONDS IS NORMALLY EXEMPT FROM FEDERAL INCOME TAXES OF MR CLINTON'S PROPOSAL TO EFFECTIVELY INCREASE THE TOP TAX BRACKET TO 396 MR TRILLING SAYS IF THAT WASN'T A CALL TO BUY MUNICIPAL BONDS I'VE NEVER SEEN ONE ELSEWHERE ON THE EDUCATION FRONT INVESTORS FLED YESTERDAY FROM STUDENT LOAN MARKETING BECAUSE MR CLINTON'S ADDRESS REVIVED THE IDEA OF THE FEDERAL GOVERNMENT MAKING STUDENT LOANS DIRECTLY THE STOCK FELL 9 3/8 TO 47 1/4 YESTERDAY IT HAD BEEN AS HIGH AS 76 WITHIN THE PAST 12 MONTHS THE COMPANY'S PRESIDENT LAWRENCE A HOUGH SAID YESTERDAY THAT DIRECT LENDING WILL NOT PRODUCE ANY REAL SAVINGS FOR TAXPAYERS SCHOOLS OR STUDENTS MARK TOLEDO OF HH&G SECURITIES SAYS THE PROPOSED INVESTMENT TAX CREDIT SHOULD GIVE A SHOT IN THE ARM TO TECHNOLOGY AND CAPITALGOODS STOCKS HIS FAVORITES INCLUDE MOTOROLA ILLINOIS TOOL WORKS AMP AND JOHN DEERE EDWARD C RORER FOUNDER OF RORER ASSET MANAGEMENT IN PHILADELPHIA THINKS THE CLINTON ADMINISTRATION WILL CONTINUE TO FAVOR THE NATURAL GAS INDUSTRY MR RORER ALREADY LIKED NATURAL GAS STOCKS HIS FAVORITE IS ENRON CORP WHICH EXPLORES FOR GAS TRANSPORTS IT TRADES IN IT AND DEVELOPS NATURAL GAS POWER PLANTS RICHARD HOFFMAN CHIEF INVESTMENT STRATEGIST AT COWEN & CO THINKS INVESTORS SHOULD PAY ATTENTION TO MR CLINTON'S PROPOSED MULTIYEAR INCREASE OF MORE THAN 30 BILLION IN SPENDING TO REBUILD THE NATION'S BRIDGES ROADS AND OTHER INFRASTRUCTURE HE THINKS THAT WILL SLOWLY BUT STEADILY IMPROVE THE EARNINGS OUTLOOK FOR ENGINEERING COMPANIES LIKE EG&G AND HEAVYEQUIPMENT MAKERS LIKE CATERPILLAR SINCE LOWERINCOME AMERICANS LARGELY ESCAPED THE BITE OF EXTRA TAXES MR HOFFMAN THINKS PROSPECTS FOR LOWEND RETAILERS SUCH AS WALMART AND KMART LOOK FINE BUT THE BIG EXTRA DOLLOP OF TAXES FOR HIGHERINCOME EARNERS BODES ILL FOR AIRLINES LIKE AMR AND UAL UPPEREND HOTEL CHAINS LIKE HILTON HOTELS AND UPSCALE RETAILERS LIKE TIFFANY AND FEDERATED DEPARTMENT STORES HE SAYS INTERSTATE/JOHNSON LANE'S MR KEANE THINKS INVESTORS SHOULD CONSIDER RAILROAD STOCKS SUCH AS BURLINGTON NORTHERN AND NORFOLK SOUTHERN WHICH HAD SOLD OFF ON FEARS THAT MR CLINTON WOULD PROPOSE A CARBON TAX BOTH RAILROADS CARRY A LOT OF COAL BUT MR KEANE WOULD STEER CLEAR OF STEEL AND ALUMINUM PRODUCERS SUCH AS ALUMINUM CO OF AMERICA THOSE INDUSTRIES REQUIRE LOTS OF ENERGY TO PRODUCE THEIR METALS HE SAYS AND COULD BE ESPECIALLY HARDHIT BY THE PROPOSED ENERGY TAX DAVID BOSTIAN ECONOMIST AT HERZOG HEINE GEDULD WARNS THAT INVESTORS SHOULDN'T GET CARRIED AWAY IN TAILORING THEIR STRATEGIES TO THE PLAN MR CLINTON ANNOUNCED WEDNESDAY NIGHT CONGRESS COULD STILL DO A LOT OF TINKERING HE SAYS THE WHOLE THING IS A KALEIDOSCOPE OF CHANGE NEW DISCOVERIES TAPPING INVESTORS' THIRST FOR SMALLCOMPANY STOCKS MINNEAPOLIS SECURITIES FIRM DAIN BOSWORTH ADDED SEVERAL COMPANIES THAT AREN'T WIDELY FOLLOWED TO ITS ANNUAL CONFERENCE FOR INSTITUTIONAL INVESTORS THAT WILL START MONDAY IN VAIL COLO THE LIST INCLUDES CHRONIMED COMPUTER NETWORK TECHNOLOGY EMPI NETWORK SYSTEMS CERIDIAN BESTOP CRYENCO SCIENCES AND TODHUNTER INTERNATIONAL THE ADDED ATTENTION IN VAIL COULD PROMPT ANY OF THESE THINLY TRADED ISSUES TO MOVE SHARPLY INDEED EMPI JUMPED 9 ON THURSDAY AFTER A GOOD EARNINGS REPORT BUT IT ALSO FELL 7 ON TUESDAY WILLIAM POWER CONTRIBUTED TO THIS COLUMN IF CONGRESS PASSES PRESIDENT CLINTON'S ECONOMIC PLAN MONEY MANAGERS SAY SOME STOCKS COULD BE SIGNIFICANTLY HELPED OR HURT HERE'S A SAMPLER 9302190134 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CASH CRUNCH CUT HOLLYWOOD'S BUDGETMINDEDNESS SETS BLACK FILMMAKERS BACK AGAIN BY THOMAS R KING HOLLYWOOD BLAIR UNDERWOOD IS A MAJOR TV STAR DRAWING ACCOLADES THE PAST SIX YEARS FOR HIS PORTRAYAL OF ATTORNEY JONATHAN ROLLINS ON THE EMMYAWARDWINNING NBC SERIES LA LAW BUT THE PLAUDITS HAVEN'T OPENED MANY DOORS IN HOLLYWOOD'S CORRIDORS OF POWER MR UNDERWOOD AND HIS BROTHER FRANK WANT TO EXPAND INTO THE MOVIE BUSINESS BUT THEIR IDEA FOR A FEATURE FILM HASN'T HAD THE PEOPLE WHO SIGN CHECKS HERE REACHING FOR THEIR PENS WE HAVE TO PUT UP OUR OWN MONEY TO DO OUR FIRST PIECES SAYS FRANK UNDERWOOD THAT'S THE WAY THAT WE HAVE TO DO IT AS BLACK MEN DESPITE THE STELLAR RISE OF SPIKE LEE HOLLYWOOD'S MOST SUCCESSFUL AFRICANAMERICAN FILMMAKER OTHER YOUNG BLACKS INCLUDING MANY WITH RECOGNIZABLE NAMES OR HITS TO THEIR CREDIT SAY THEIR EXPERIENCES IN GETTING HOLLYWOOD FINANCING HAVEN'T BEEN ENCOURAGING THEY SAY THAT THEIR PROPOSED MOVIES ARE GIVEN STIFFER LITMUS TESTS THAN THOSE OF WHITE FILMMAKERS CASH TO FUND MOVIE PRODUCTION JUST ISN'T DOLED OUT ON AN EQUALOPPORTUNITY BASIS THEY CHARGE LET'S PUT IT THIS WAY THEY DON'T GIVE BLACK FOLKS 33 MILLION SAYS MATTY RICH THE 21YEAROLD WRITERDIRECTOR OF STRAIGHT OUT OF BROOKLYN WHICH WAS MADE FOR A PALTRY 77000 IF YOU LOOK AT THE LINEUP OF BLACK FILMS MALCOLM X' AT ABOUT 33 MILLION IS THE EXCEPTION TO BE SURE PRODUCTION FUNDS SEEM HARDER TO COME BY FOR EVERYONE THESE DAYS A RECESSION COMBINED WITH YEARS OF SHARPLY RISING COSTS PROMPTED STUDIO EXECUTIVES TO BEGIN TRIMMING MOVIE BUDGETS MORE THAN A YEAR AGO ACCORDING TO THE MOTION PICTURE ASSOCIATION OF AMERICA THE AVERAGE COST OF MAKING A MOVIE DROPPED SLIGHTLY IN 1991 TO 261 MILLION LAST YEAR'S FIGURES WILL BE RELEASED IN A FEW WEEKS EVEN MR LEE RAN INTO PROBLEMS GETTING ALL THE MONEY HE SAID HE NEEDED TO MAKE MALCOLM X WHICH WON CRITICAL ACCLAIM WHEN IT WAS RELEASED LAST NOVEMBER ORIGINALLY BUDGETED AT 28 MILLION AN INSURANCEBOND COMPANY LEVIED CERTAIN RESTRICTIONS ON THE FILMMAKER AFTER HE WENT 5 MILLION OVER BUDGET CELEBRITY FRIENDS SUCH AS BILL COSBY OPRAH WINFREY AND EARVIN MAGIC JOHNSON ALL WROTE CHECKS HELPING TO COVER SOME MINOR COSTS AND AIDING IN MR LEE'S MASTERLY PUBLICRELATIONS CAMPAIGN TO HYPE THE MOVIE BLACK FILMMAKERS SAY HOLLYWOOD RETRENCHMENT COULDN'T COME AT A WORSE TIME JUST A COUPLE OF YEARS AGO STUDIOS SEEMED TO BE ON THE VERGE OF EMBRACING BLACK FILMMAKERS AND MOVIES WITH BLACK THEMES BUT LAST YEAR HOLLYWOOD RELEASED ONLY ABOUT HALF AS MANY SUCH MOVIES AS IT DID IN 1991 SOME SAY THE SLUMP IS JUST CYCLICAL WITH MANY ESTABLISHED BLACK FILMMAKERS SUCH AS WRITERDIRECTOR JOHN SINGLETON WHO SCORED BIG WITH BOYZ N THE HOOD IN 1991 READYING FILMS FOR RELEASE THIS YEAR AND NEXT OTHERS THOUGH WORRY THAT THE LOST GROUND IS REAL AND WILL BE HARD TO RECOVER TO REGAIN THE LOST MOMENTUM BLACK FILMMAKERS ARE FIGHTING HARD TO WIN BIGGER BUDGETS AMONG OTHER THINGS THEY ARE EXPANDING THE KINDS OF MOVIES THEY MAKE TRYING TO SHOW THAT BLACK FILMS CAN ALSO DRAW WHITE AUDIENCES AND BECOME BLOCKBUSTERS THEY SAY THAT FILMS LIKE NEW JACK CITY AND JUICE WERE IMPORTANT TO THE EVOLUTION OF THE GENRE BUT THAT THE NEXT WAVE OF BLACK FILMS WILL HAVE TO FEATURE STORIES THAT OVE BEYOND THE SEEMINGLY HOPELESS BATTLES FOUGHT IN THE MIDDLE OF URBAN WAR ZONES HOLLYWOOD'S BLACK COMMUNITY FOR INSTANCE WAS CHEERED WHEN COLUMBIA PICTURES GOT BEHIND BOYZ N THE HOOD WHICH BECAME A HUGE HIT THAT ACHIEVED A RACIALLY DIVERSE CROSSOVER AUDIENCE THE FILM WON TWO ACADEMY AWARD NOMINATIONS FOR MR SINGLETON ITS WRITER AND DIRECTOR BOYZ WHICH GROSSED 60 MILLION IN THE US HAD A BUDGET OF JUST 6 MILLION THE BUDGET OF MR SINGLETON'S NEWEST FILM IS DOUBLE THAT COLUMBIA IS A UNIT OF OF SONY CORP'S SONY PICTURES ENTERTAINMENT IN HIS MOVIE POSSE SCHEDULED FOR RELEASE IN MAY MARIO VAN PEEBLES WHO DIRECTED AND STARRED IN WARNER BROS' NEW JACK CITY THINKS HE HAS ALSO FOUND A FILM THAT WON'T ALIENATE THE YOUNGER BLACK MOVIEGOING CROWD AND WILL APPEAL TO A WHITE AUDIENCE THE MOVIE WHICH STARS BILLY ZANE BLAIR UNDERWOOD RAPPER BIG DADDY KANE AND MR VAN PEEBLES IS A WESTERN SET IN THE 1800S THAT TELLS THE STORY OF BLACK OUTLAWS IT'S IMPERATIVE FOR BLACK FILMMAKERS TO EXPAND THEIR HORIZONS HE SAYS LIKE IT'S IMPORTANT THAT FRANCIS FORD COPPOLA AN ITALIANAMERICAN CAN STEP AWAY FROM THE GODFATHER' AND MAKE APOCALYPSE NOW' WHERE NO ONE'S SITTING AROUND EATING PASTA POSSE BUDGETED AT 10 MILLION WILL BE ONE OF THE FIRST MOVIES RELEASED BY GRAMERCY PICTURES A NEW DISTRIBUTION COMPANY SET UP WITH MCA'S UNIVERSAL PICTURES TO RELEASE MOVIES THAT HAVE MARKETING AND RELEASING BUDGETS FAR LOWER THAN THE INDUSTRY AVERAGE MCA IS A SUBSIDIARY OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO BLACK FILMMAKERS ARE ALSO HOPING THAT THE MODEST SUCCESS OF MALCOLM X WILL SPUR A SPATE OF OTHER HIGHERBUDGET BLACKORIENTED FILMS MR LEE HIMSELF MAY BE A KEY AS PART OF A NEW MULTIPICTURE DEAL WITH UNIVERSAL PICTURES HE HAS THE ABILITY TO NURTURE YOUNG FILMMAKING TALENT BY SERVING AS EXECUTIVE PRODUCER ON THEIR FILMS I'M GOING TO GRAB THIS BULL BY THE HORNS MR LEE SAYS I'M NOT GOING TO LET THIS CHANCE SLIP AWAY THE FIRST FILM HE HOPES TO PRODUCE IS BY DARNELL MARTIN A RECENT NEW YORK UNIVERSITY FILMSCHOOL GRADUATE WHAT KIND OF A GRADE DOES HOLLYWOOD GET TODAY FOR EMBRACING BLACK FILMMAKERS C OR D MR LEE SAYS FLATLY WE'RE STILL NOT ON THE SAME LEVEL WE WANT TO GROW WE WANT TO HAVE ACCESS TO THE SAME FUNDS THAT THE WHITE BOYS GET BLACK FILMMAKERS MOSTLY GO AFTER SLICES OF THE SAME PIE THAT WHITE FILMMAKERS DO BUT FUNDS SET UP SOLELY FOR BLACKS ARE GROWING THE BLACK FILMMAKER FOUNDATION IN NEW YORK FOUNDED BY FILMMAKERS REGINALD AND WARRINGTON HUDLIN IS WORKING WITH A FEW ORGANIZATIONS TO PUT TOGETHER INVESTOR POOLS THAT WOULD HELP FINANCE BLACK MOVIES ALTHOUGH THE FOUNDATION WON'T BE SPECIFIC EXECUTIVE DIRECTOR ANDRE ROBINSON JR SAYS POTENTIAL SOURCES INCLUDE AN INVESTMENTBANKING FIRM AND A GROUP OF PROFESSIONAL BLACK ATHLETES LOOKING TO STIMULATE BLACK FILMMAKING THIS HAS BEEN TALKED ABOUT BEFORE BUT I THINK THAT NOW BECAUSE OF THE SUCCESS OF FILMS BY SPIKE LEE THE HUDLIN BROTHERS AND JOHN SINGLETON PEOPLE ARE BEGINNING TO SEE WHAT THE POSSIBILITIES ARE MR ROBINSON SAYS THEY'RE SEEING THAT IF WE DON'T STIMULATE THE BEGINNING OF THE FOOD CHAIN ALL WE'LL HAVE IS SPIKE LEE AND JOHN SINGLETON BUT EVEN THESE INVESTORS BALK AT THE BIG BUDGETS BLACK FILMMAKERS ARE SEEKING MR ROBINSON SAYS THE INVESTORS ARE MAINLY INTERESTED IN HELPING FINANCE MOVIES WITH BUDGETS THAT DON'T EXCEED 5 MILLION AND HE SAYS THAT THE INVESTORS ARE CONCERNED ABOUT THE FILMS' SUBJECT MATTER INSISTING THAT MOST HAVE DEFINITE COMMERCIAL POTENTIAL STILL WHILE THE BIG MONEY ISN'T THERE YET FOR MOST BLACK FILMMAKERS THERE ARE SOME NOTABLE BRIGHT SPOTS STANDUP COMIC ROBERT TOWNSEND JUMPED ON THE SCENE WITH A BIG SPLASH IN 1987 WITH THE HOLLYWOOD SHUFFLE A LOWBUDGET MOVIE HE BASICALLY PAID FOR WITH CASH ADVANCES ON HIS CREDIT CARDS AND EVEN THOUGH HIS FIRST MAJOR STUDIO RELEASE TWENTIETH CENTURY FOX'S THE FIVE HEARTBEATS WASN'T A BOXOFFICE SUCCESS HE HAS WON NEW BACKING THE FIVE HEARTBEATS COST A RELATIVELY LOW 85 MILLION HIS NEXT MOVIE THE METEOR MAN HAS A BUDGET OF JUST UNDER 20 MILLION YOU ALWAYS WANT MORE MONEY MR TOWNSEND SAYS WITH A LAUGH WITH MORE MONEY YOU CAN MAKE A BETTER PICTURE OR BE ABLE TO PAY YOUR ACTORS BETTER ESPECIALLY MINORITY ACTORS THEY'RE BASICALLY WORKING FOR SCALE OR JUST A DIME OVER SCALE I REALLY FIGHT THAT MR TOWNSEND CALLS THE METEOR MAN SET FOR RELEASE NEXT MONTH BY METROGOLDWYNMAYER INC AN INNERCITY FAIRY TALE IN WHICH HE STARS AS A SUPERHERO FEATURED IN THE COMEDY ARE MR COSBY JAMES EARL JONES MARLA GIBBS AND LUTHER VANDROSS AMONG OTHERS MR RICH THE CREATOR OF STRAIGHT OUT OF BROOKLYN ALSO DOESN'T GET BIG BUDGETS YET BUT AFTER HIS FILM BECAME A SUCCESS HE GOT A DEVELOPMENT DEAL AT SONY'S TRISTAR PICTURES THE STUDIO NOW PAYS OPERATING COSTS FOR A SMALL OFFICE AND STAFF AND FOOTS THE BILL FOR DEVELOPING PROJECTS THAT MIGHT EVENTUALLY GET MADE INTO MOVIES HARD TO PLEASE MR RICH CONCEDES HE HAS HAD SOME DIFFICULTY PLEASING THE COMMITTEE OF STUDIO EXECUTIVES WHO HE SAYS SAY COMMERCIAL FILMS HAVE TO HAVE EXCITEMENT LOVE HUMOR YOU CAN'T HAVE THAT MUCH PAIN' BUT HE SAYS THERE IS SOME VALUE TO THEIR CONCERNS WE HAVE TO START EXPANDING OUR HORIZONS MR RICH SAYS THE REALISTIC STREET STORIES ARE ONE PART BUT WE HAVE OTHER KINDS OF STORIES TO TELL TOO LOVE STORIES FUNNY STORIES STORIES WITH SUPER HEROES ONE PROJECT MR RICH IS DEVELOPING IS CALLED THE FORTY THIEVES WHICH CHRONICLES THE TRUE STORY OF THE FIRST ORGANIZED BLACK CRIME FAMILY IN AMERICA ANOTHER MOVIE HE HOPES TO DIRECT IS COACH ABOUT A WHITE BASKETBALL COACH WHO TEACHES MOSTLY BLACK KIDS AT PROSPECT HEIGHTS HIGH SCHOOL IN BROOKLYN THE MOVIE WOULD BE PRODUCED BY DANNY DEVITO'S COMPANY AT TRISTAR AND WOULD PROBABLY STAR MR DEVITO AND HIS WIFE ACTRESS RHEA PERLMAN PROJECTS SUCH AS COACH ARE HOPEFUL SIGNS TO MANY BLACK FILMMAKERS WHO SEE THE INCREASING COOPERATION OF WHITES AND BLACKS IN HOLLYWOOD AS POSITIVE AS SUCH MOVIES PROLIFERATE JUST WHAT MAKES A BLACK FILM IS BLURRING THE BLACK FILMMAKER FOUNDATION DEFINES A BLACK FILM AS ONE IN WHICH EITHER THE DIRECTOR IS BLACK OR BOTH THE WRITER AND PRODUCER ARE BLACK IT GETS KIND OF TRICKY TRESPASS A RECENT ACTION MOVIE THAT STARRED BLACK RAPPERS ICE CUBE AND ICET DOESN'T MAKE THE GRADE BUT POETIC JUSTICE A JOHN SINGLETON ROMANTIC DRAMA DUE OUT IN JULY THAT STARS JANET JACKSON DOES MANY BLACK FILMMAKERS THOUGH REMAIN FRUSTRATED BY STUDIO EXECUTIVES WHO SEEM RELUCTANT TO EMBRACE FILMS THAT EXPLORE OTHER FACETS OF THE BLACK EXPERIENCE OUTSIDE OF LIFE ON THE STREETS THEY SAY THAT SOME EXECUTIVES BELIEVE THAT THE ONLY BLACKS WHO GO TO THE MOVIES ARE YOUNG PEOPLE WHO THIRST FOR STREET MOVIES LACED WITH ACTION AND VIOLENCE OLDER BLACKS THE RATIONALE GOES DON'T LINE UP AT THEATERS OR THEY SIMPLY WAIT FOR FILMS TO BE RELEASED ON HOME VIDEOCASSETTE MOVIE EXECUTIVES MAY BE FRIGHTENED OF A REPEAT OF TO SLEEP WITH ANGER A 1991 BOMB SET ALMOST ENTIRELY INDOORS THE MOVIE TOLD THE STORY OF AN UPPERMIDDLECLASS BLACK FAMILY AND HOW THEIR LIFE CHANGED AFTER A VISITOR PLAYED BY DANNY GLOVER CAME INTO THEIR LIVES SAMUEL GOLDWYN CO THE MOVIE'S DISTRIBUTOR BOOKED THE FILM INTO THEATERS THAT HAD TRADITIONALLY DONE WELL ATTRACTING BLACK AUDIENCES BUT FEW MOVIEGOERS SHOWED UP THE FILM WHICH RECEIVED MANY POSITIVE REVIEWS WAS A BIGGER HIT AT ARTHOUSE THEATERS STEPHANIE ALLAIN A VICE PRESIDENT AT COLUMBIA PICTURES AND ONE OF THE FEW BLACK STUDIO PRODUCTION EXECUTIVES IN HOLLYWOOD INSISTS THAT ISN'T THE ATTITUDE AT HER STUDIO I DON'T WANT TO KEEP SEEING THE SAME STORY IN THE 'HOOD OR THE GANG STORIES OVER AND OVER AGAIN SHE SAYS THAT DOESN'T INTEREST ME UNLESS IT'S A NEW STORY THAT HAPPENS TO BE SET THERE SHE PROMISES WE'RE NOT LOOKING TO GHETTOIZE BLACK FILMS PERHAPS BUT FINDING FINANCIAL BACKING REMAINS A STAGGERING CHALLENGE AFTER BLAIR AND FRANK UNDERWOOD KEPT ENCOUNTERING DEAD ENDS THEY DECIDED TO BANKROLL THEIR OWN SHORT FILM AS PROOF THAT THEY WERE SERIOUS THE RESULT WAS A 10MINUTE FEATURE THE SECOND COMING IN WHICH BLAIR UNDERWOOD PLAYS A MODERNDAY CHRIST THE FILM WAS WRITTEN AND DIRECTED BY FRANK UNDERWOOD BUT THEIR PROPOSED FEATURE IS GOING TO BE A HARD SELL THE BROTHERS CONCEDE ALL OF THE LEAD CHARACTERS ARE STRONG BLACK MALE CHARACTERS WHICH COULD BE MISCONSTRUED TO BE THREATENING SAYS BLAIR UNDERWOOD WHILE FRUSTRATED WITH THAT REACTION THEY HAVE ALSO WRITTEN ANOTHER SCRIPT THAT MAY HAVE THE COMMERCIAL APPEAL HOLLYWOOD WANTS AN ACTIONADVENTURE STORY ABOUT A SPECIAL AGENT WHOSE JOB IS TO SAVE THE WORLD WE KNOW OUR COMMUNITY OUR CULTURE BETTER THAN THOSE WHO ARE FUNDING THE MOVIES SAYS BLAIR UNDERWOOD OFTENTIMES THEY WANT US TO MAKE THE FILM THEIR WAY THEY WANT TO HAVE THE FINAL SAY ON EDITING THEY WANT TO HAVE THE FINAL SAY ON MUSIC THEY NEED TO LET US MAKE THE DECISIONS WE KNOW WHAT'S GOING TO WORK MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU HERE ARE 1992 FILM RELEASES AND THEIR BOXOFFICE REVENUE FOR BLACK FILMS AS DEFINED BY THE BLACK FILMMAKER FOUNDATION THE FOUNDATION'S DEFINITION INCLUDES MOVIES THAT ARE EITHER DIRECTED BY BLACKS OR THOSE IN WHICH TWO OF THE THREE MAIN PARTICIPANTS DIRECTOR WRITER OR PRODUCER ARE BLACK 9302190133 930219 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED FEB 12 ACCOUNTED FOR 82 OR AN AVERAGE 198 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 62 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 419 INVOLVED STOCKINDEX ARBITRAGE UP FROM 356 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 444 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 433 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 123 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND UBS SECURITIES DID MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY FIRST BOSTON AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9302190132 930219 VARTA CUTS WORKING HOURS HANOVER GERMANY VARTA AG A MAJOR MAKER OF AUTOMOBILE BATTERIES ANNOUNCED TWO WEEKS OF SHORTENED SHIFTS FOR ABOUT 1600 WORKERS IN ITS FOUR GERMAN FACTORIES THE REASON IS CONTINUED SALES PROBLEMS IN THE AUTO INDUSTRY THE COMPANY EMPLOYS ABOUT 2300 WORKERS AT ITS HANOVER HILDESHEIM BERLIN AND RASTATT PLANTS 9302190131 930219 POLAROID CORP TO INTRODUCE COMPACT CAMERA IN US CAMBRIDGE MASS POLAROID CORP SAID IT WILL INTRODUCE ITS NEW COMPACT INSTANT CAMERA IN LATE SUMMER IN THE US WHERE IT WILL BE CALLED THE CAPTIVA THE NEW CAMERA AN AUTOFOCUS SINGLE LENS REFLEX CAMERA THAT FOLDS WAS INTRODUCED IN SEPTEMBER IN GERMANY UNDER THE NAME POLAROID VISION THE CAMERA WAS CALLED JOSHUA DURING DEVELOPMENT POLAROID SAID THE CAMERA HAS ENJOYED STRONG SALES IN GERMANY WHERE IT SELLS FOR 199 MARKS ABOUT 123 IT WOULDN'T SAY WHAT THE CAMERA WILL SELL FOR IN THE US POLAROID'S SPECTRA CAMERA ITS CURRENT TOPOFTHELINE CONSUMER CAMERA SELLS FOR 79 AND UP DEPENDING ON FEATURES POLAROID ALSO SAID IT IS INTRODUCING TWO ENHANCED QUALITY INSTANT FILMS THE POLACOLOR PRO 100 COLOR PEELAPART FILM FOR THE PROFESSIONAL PHOTOGRAPHY MARKET AND POLAROID 600 HIGH DEFINITION FILM FOR THE CONSUMER MARKET POLAROID ALSO INTRODUCED A NEW VERSION OF ITS ONESTEP CAMERA WITH A NEW DESIGN 9302190130 930219 INTERNATIONAL LM ERICSSON RECEIVES CONTRACTS STOCKHOLM THE SWEDISH TELECOMMUNICATIONS COMPANY LM ERICSSON SAID IT WAS AWARDED CONTRACTS FOR EXPANSION OF CELLULAR PHONE NETWORKS IN CHINA AND AUSTRALIA TOTALING MORE THAN 178 MILLION ERICSSON WON A CONTRACT VALUED AT MORE THAN 150 MILLION FOR EXPANSION OF THE THE CELLULAR PHONE NETWORK IN GUANGDONG PROVINCE THE EQUIPMENT TO BE DELIVERED IN THE THIRD QUARTER WILL EXPAND THE NETWORK CAPACITY TO SERVE AN ADDITIONAL 240000 SUBSCRIBERS SEPARATELY AUSTRALIA AND OVERSEAS TELECOMMUNICATIONS CORP AWARDED A 28 MILLION CONTRACT TO ERICSSON FOR EQUIPMENT TO EXPAND THE EXISTING ANALOG CELLULAR NETWORK 9302190129 930219 AMERICA WEST TO EXTEND OFFPEAK LEISURE FARES PHOENIX AMERICA WEST AIRLINES SAID IT WILL EXTEND DISCOUNTS OF AS MUCH AS 30 ON CERTAIN LEISURE FARES DURING OFFPEAK TRAVEL THE OFFER OF THESE REDUCED FARES BEGAN IN NOVEMBER UNDER THE EXTENSION TRAVEL MUST BE COMPLETED BY JUNE 10 AND TICKETS MUST BE PURCHASED BY MARCH 10 AND 14 DAYS BEFORE TRAVEL BEGINS TO GET THE FARE A TRAVELER MUST STAY OVER A SATURDAY NIGHT AN AMERICA WEST SPOKESMAN SAID HOWEVER THAT OFFPEAK DAYS HAVE BEEN REDEFINED AS JUST TUESDAY AND WEDNESDAY IN THE PREVIOUS SALE OFFPEAK TRAVEL COULD OCCUR FROM NOON MONDAY THROUGH NOON THURSDAY HE SAID SEPARATELY A FEDERAL BANKRUPTCY COURT JUDGE ALLOWED AMERICA WEST AND AMERICAN AIRLINES A UNIT OF AMR CORP TO HOLD PRELIMINARY TALKS ABOUT A POSSIBLE JOINT VENTURE MARKETING ARRANGEMENT AND MANAGEMENTSERVICES AGREEMENTS AMERICA WEST HAS BEEN OPERATING UNDER BANKRUPTCYLAW PROTECTION SINCE JUNE 1991 AS PREVIOUSLY REPORTED A JOINT MARKETING ARRANGEMENT BETWEEN THE TWO COULD LINK THEIR FREQUENTFLYER PROGRAMS AND COORDINATE SOME ADVERTISING AND PROMOTION EFFORTS THE TWO AIRLINES SAID 9302190128 930219 LETTERS TO THE EDITOR LANDLORDS AS POLICEMEN GIDEON KANNER'S RULE OF LAW COLUMN CALIFORNIA MAKES LANDLORDS DO THE POLICE'S JOB OPED PAGE JAN 27 DOESN'T REALLY HAVE MUCH TO DO WITH CRIME AND LOCAL POLICE'S AND GOVERNMENTS' ABILITIES RATHER HIS REAL ISSUE IS WITH AN EVOLVING DEFINITION OF THE RESPONSIBILITIES ASSOCIATED WITH PRIVATE PROPERTY OWNERSHIP AND THE APPLICATION OF CIVIL LAW REMEDIES WHEN POLICING STRATEGIES ARE NOT EFFECTIVE OWNERSHIP OF PRIVATE PROPERTY ESPECIALLY REAL ESTATE CARRIES WITH IT THE RESPONSIBILITY OF USING IT IN A COMMUNITYRESPONSIVE MANNER THIS ENTAILS IN PART PROVIDING SAFE APPROPRIATE HOUSING WHICH BENEFITS THE SURROUNDING COMMUNITY WITHOUT HAVING TO RELY ON THE POLICE EITHER TO CREATE OR ESTABLISH IT CALIFORNIA CERTAINLY SOUTHERN CALIFORNIA HAS BECOME THE LAND OF THE GATEDENCLAVE NOT SO MUCH BECAUSE POLICE HAVE FAILED BUT BECAUSE PROPERTY VALUE FLUCTUATIONS ARE PREVENTED BY CODIFIED COMMUNITY STANDARDS AND ULTIMATELY CIVIL LAW SHOULD A PERSON WHO DOES NOT RESIDE WITHIN SUCH A PROTECTED COMMUNITY BE DENIED THOSE SAME PROCEDURAL AND REMEDIAL RIGHTS PROF KANNER POINTS TO SEVERAL EXAMPLES WHERE CALIFORNIA COURTS AND LOCAL ZONING BOARDS HAVE STEPPED IN AFTER PURPORTED POLICE FAILURE FOR INSTANCE HE STATES THAT OWNERS ARE BEING TOLD TO SOLVE A LAW ENFORCEMENT PROBLEM THAT THE CITY POLICE HAVE NOT BEEN ABLE TO FIX IN SPITE OF PATROL CARS BEING DISPATCHED TO THE MOTEL 138 TIMES IN THE SPACE OF ONE YEAR UNDOUBTEDLY PATROL CARS WOULD BE DISPATCHED A GOOD MANY TIMES LESS IF THE MOTEL'S OWNERS CHANGED THEIR BUSINESS POLICIES AND THE MOTEL'S ENVIRONMENT IF I WERE AN ADJACENT PROPERTY OWNER I WOULD NOT HESITATE TO SEEK CIVIL LAW REDRESS FROM THE MOTEL'S OWNERS FOR THEIR DE FACTO TAKING OF MY PROPERTY THROUGH DIMINISHMENT OF ITS RESALE VALUE PROF KANNER'S CONCERN SEEMS TO BE THAT IF LANDLORDS ARE COURTORDERED TO BEAR THE COST OF PROVIDING AN ESSENTIAL GOVERNMENT FUNCTION IE POLICING THEN EXISTING LANDLORDS WILL ABANDON THE MARKET AND NO NEW ONES WILL STEP IN TO TAKE THEIR PLACE ALL OF COURSE TO THE DETRIMENT OF THOSE WHO CANNOT AFFORD TO LIVE BEHIND LOCKED GATES AND FENCES HOWEVER PROVIDING A SAFE HABITABLE APARTMENT OR RESIDENCE NOT ONE THAT NECESSITATES 138 YEARLY POLICE VISITS SHOULD BE A COMMUNITY STANDARD IT'S ENTIRELY APPROPRIATE FOR AFFECTED COMMUNITY MEMBERS TO RELY UPON CIVIL LAW TO ENFORCE IT MR KANNER IS RIGHT ON ONE POINT THOUGH WE BADLY NEED SAFE LOWCOST HOUSING MR KANNER'S COLUMN DRAMATICALLY ILLUSTRATES A DISTURBING TREND IN THE US DESCRIBED SIMPLY IT IS THE UNDERMINING OF PRIVATE PROPERTY RIGHTS IT APPEARS THAT THESE RIGHTS ARE NOT PASSIVELY WANING BUT ARE BEING DIRECTLY IMPAIRED BY AN ACTIVIST LIBERAL GOVERNMENT DESPITE ALL ITS EDUCATION THE INTELLIGENTSIA PARTICULARLY IN THE JUDICIARY DOES NOT UNDERSTAND THE PRIMARY IMPORTANCE OF PRIVATE PROPERTY TO THE VITALITY OF OUR REPUBLIC AS FOR THE RELATIONSHIP BETWEEN PRIVATE PROPERTY AND THE RULE OF LAW I BELIEVE CALVIN COOLIDGE EXPRESSED IT BEST THE PRIME ELEMENT IN THE VALUE OF ALL PROPERTY IS THE KNOWLEDGE THAT ITS PEACEFUL ENJOYMENT WILL BE PUBLICLY DEFENDED 9302190127 930219 TECHNOLOGY & HEALTH IBM'S JAPAN UNIT OFFERS EARLY RETIREMENT PLAN TOKYO RESTRUCTURING AT BIG BLUE HAS FINALLY CAUGHT UP WITH ITS JAPANESE SUBSIDIARY IBM JAPAN LTD THE 65YEAROLD JAPANESE SUBSIDIARY OF INTERNATIONAL BUSINESS MACHINES CORP SAID IT HOPES TO SHED A SUBSTANTIAL NUMBER OF ITS EMPLOYEES AGED 50 AND OLDER THROUGH THE COMPANY'S FIRST EARLY RETIREMENT PLAN A SPOKESMAN SAID THE SPOKESMAN DENIED RECENT JAPANESE REPORTS THAT THE COMPANY AIMS TO GET RID OF 1200 SUCH EMPLOYEES BUT HE ADDED THAT IF IT COMES IN AROUND THAT NUMBER IT WOULD SUIT PEOPLE HERE IBM JAPAN HAS ABOUT 3000 EMPLOYEES IN THE OVER50 AGE GROUP AND EMPLOYS A TOTAL OF 25000 PEOPLE THE COMPANY'S ASIANPACIFIC OPERATIONS WHICH INCLUDE IBM JAPAN ACCOUNT FOR ABOUT 20 OF THE PARENT COMPANY'S REVENUE THE NUMBER OF PEOPLE IBM JAPAN HOPES TO TRIM FROM ITS PAYROLL IS SMALL COMPARED WITH THE NEARLY 26000 EMPLOYEES THAT IBM HAS ANNOUNCED IT WILL CUT WORLDWIDE AS PART OF AN OVERALL RESTRUCTURING INTENDED TO PUT ITS BADLY BATTERED BUSINESS BACK ON TRACK 9302190126 930219 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 302 30 TO 59 DAYS 306 60 TO 89 DAYS 307 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 TO 179 DAYS 313 180 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 267 THREE MONTHS 277 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 305 ONE MONTH 310 THREE MONTHS 315 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 303 90 DAYS 304 120 DAYS 308 150 DAYS 310 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 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 1/8 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 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 TUESDAY FEBRUARY 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 293 13 WEEKS 308 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 738 60 DAYS 746 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4375 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 736 60 DAYS 745 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 530 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 284 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302190125 930219 PAINEWEBBER SETTLES SEC CASE OVER 6 BROKERS AGENCY SAID FIRM FAILED TO PROVIDE SUPERVISION CLIENTS LOST 26 MILLION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION ACCUSED PAINEWEBBER GROUP INC OF FAILING TO SUPERVISE SIX BROKERS IN FIVE BRANCHES WHO BILKED 12 INVESTORS OF A TOTAL OF 26 MILLION PAINEWEBBER SETTLED THE CASE WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OR PAYING A FINE INSTEAD THE SEC ORDERED AN UNUSUAL SANCTION FOUR OF THE FIVE PAINEWEBBER BRANCHES AREN'T ALLOWED TO OPEN ANY NEW BROKERAGE ACCOUNTS FOR ONE MONTH THE SEC SAYS IT RARELY ISSUES ORDERS RESTRICTING CUSTOMER ACTIVITY AT BROKERAGE FIRMS THE CASE WHICH STEMMED FROM ACTIVITIES BY THE BROKERS BETWEEN 1986 AND 1990 IS PART OF AN INCREASED EFFORT BY REGULATORS TO PUNISH BROKERAGE FIRMS FOR FAILING TO PROPERLY MONITOR EMPLOYEES IT ALSO IS THE FIRST SEC ACTION AGAINST A BROKERAGE FIRM SINCE THE COMMISSION LAUNCHED AN INFORMAL INQUIRY TO SEE WHETHER WALL STREET FIRMS IGNORE COMPLIANCE PROBLEMS IN HIRING AND RETAINING BROKERS THIS IS A VERY SUBSTANTIAL ACTION SAYS MARY KEEFE AN ASSOCIATE REGIONAL ADMINISTRATOR IN THE SEC'S CHICAGO OFFICE THE COMMISSION WON'T TOLERATE THE INDUSTRY'S LACK OF ATTENTION TO ITS RESPONSIBILITY TO REASONABLY SURPERVISE ITS EMPLOYEES PAINEWEBBER FOR ITS PART SAYS IT HAS PAID BACK THE BULK OF WHAT THE INVESTORS LOST IN THE TRANSACTIONS MANY OF WHICH INVOLVED OPTIONS TRADING ALMOST ALL OF THE ACTIVITIES HAPPENED PRIOR TO 1988 AND WITH ONE EXCEPTION EVERY ONE OF THE CLIENTS WAS TAKEN CARE OF WITH THE ISSUES SETTLED SAYS JOSEPH GRANO HEAD OF PAINEWEBBER'S BROKERAGE OPERATIONS ALL OF THE BROKERS INVOLVED WHO WERE FOUND BY PAINEWEBBER TO BE GUILTY WERE DISMISSED MR GRANO SAYS ONE COMMITTED SUICIDE HE ADDS THE SEC DIDN'T DISCLOSE THE NAMES OF THE BROKERS IN YESTERDAY'S ACTION BUT THE SEC IS LIKELY TO CHARGE THE BROKERS IN A SEPARATE CASE PEOPLE FAMILIAR WITH THE MATTER SAY THE SETTLEMENT STEMS FROM SEC ADMINISTRATIVE ACTIONS INVOLVING PAINEWEBBER OFFICES IN BIRMINGHAM ALA BEVERLY HILLS CALIF OAK BROOK ILL HOUSTON AND NORTHBROOK ILL THE SEC ALLEGED THAT BROKERS IN THOSE OFFICES COMMITTED SEVERAL SECURITIESLAW VIOLATIONS INCLUDING MISLEADING CUSTOMERS DEFRAUDING CUSTOMERS MISAPPROPRIATING CUSTOMERS' MONEY SELLING UNSUITABLE INVESTMENTS AND SELLING UNREGISTERED SECURITIES THE MOST BLATANT ACTIVITIES TOOK PLACE IN THE BIRMINGHAM OFFICE SEC OFFICIALS SAY IN THAT CASE THE SEC SAYS A PAINEWEBBER BROKER OVERSEEING TWO CLIENT TRUST ACCOUNTS ENTERED INTO UNAUTHORIZED INDEXOPTIONS TRANSACTIONS IN THE GAMBIT ACCORDING TO THE SEC THE BROKER PUT ALL THE LOSING OPTIONS TRADES IN THE TRUST ACCOUNTS' PORTFOLIOS AND FUNNELED THE WINNING TRADES INTO HIS OWN ACCOUNT AND THAT OF A FELLOW PAINEWEBBER BROKER INVESTORS LOST ABOUT 13 MILLION IN THAT CASE ALONE THE SEC SAYS MOST OF THE VIOLATIONS OCCURRED BETWEEN 1986 AND LATE 1990 THE SEC SAYS UNDER THE TERMS OF THE SETTLEMENT PAINEWEBBER AGREED TO TAKE A NUMBER OF STEPS THE STRICTEST OF WHICH WILL BE THE ORDER BARRING OPENING NEW CUSTOMER ACCOUNTS IN MARCH SEC OFFICIALS SAY THE ORDER LIKELY WILL PREVENT THE FOUR PAINEWEBBER BRANCHES FROM OPENING ABOUT 550 NEW ACCOUNTS FOR THE MONTH PAINEWEBBER'S NORTHBROOK BRANCH WAS EXEMPTED FROM THE ORDER BECAUSE THE SEC SAYS THE VIOLATIONS WERE LESS EGREGIOUS THE SEC SAYS IT COULDN'T LEVY A MONETARY FINE IN THE CASE BECAUSE MANY OF THE BROKERS' ACTIVITIES OCCURRED BEFORE 1990 THAT'S WHEN A LAW ALLOWING THE SEC TO FINE BROKERAGE FIRMS FOR SUCH ACTIONS WAS ENACTED PAINEWEBBER WILL BE REQUIRED TO RETAIN AN OUTSIDE CONSULTANT TO REVIEW AND REPORT ON THE FIRM'S PRACTICES AND POLICIES RELATED TO COMPLIANCE SUPERVISION AND THE SALE OF RESTRICTED SECURITIES THE SETTLEMENT ALSO REQUIRES PAINEWEBBER TO PUT IN PLACE THE CONSULTANTS' RECOMMENDATIONS THE SEC ALSO ORDERED PAINEWEBBER TO DIRECT THE CONSULTANT TO REVIEW THE FAIRNESS OF SETTLEMENTS REACHED BETWEEN PAINEWEBBER AND CUSTOMERS OF THE BIRMINGHAM OAK BROOK AND POST OAK OFFICES TO DETERMINE WHETHER THE CUSTOMERS SHOULD RECEIVE ADDITIONAL COMPENSATION THE CONSULTANT WILL NOT BE ASKED TO REVIEW ANY CASE IN WHICH AS A RESULT OF ARBITRATION OR COURT DECISIONS A CUSTOMER HAS ALREADY RECEIVED AN AWARD AS PART OF THE SETTLEMENT PAINEWEBBER ALSO MUST CONDUCT TWODAY TRAINING SEMINARS FOR ALL SUPERVISORY AND MANAGERIAL EMPLOYEES IN THE FIRM'S BRANCH AND REGIONAL OFFICES IN RECENT DAYS MR GRANO HAS STEPPED UP EFFORTS AT ALERTING PAINEWEBBER BROKERS TO AVOID POTENTIAL CUSTOMER PROBLEMS HE SAYS WE WANT THE WORLD TO KNOW THAT PAINEWEBBER WON'T TOLERATE MISCONDUCT ON THE PART OF ANY BROKER 9302190124 930219 WHO'S NEWS ALCO STANDARD CORP ALCO STANDARD CORP VALLEY FORGE PA THIS PAPER AND OFFICE PRODUCTS DISTRIBUTOR SAID ITS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER LARRY K SWITZER 50 YEARS OLD RESIGNED TO PURSUE OTHER INTERESTS MR SWITZER HAD JOINED THE COMPANY IN AUGUST THE RESIGNATION WAS SUDDEN A SPOKESMAN SAID ADDING THAT THE COMPANY WOULD START SEARCHING FOR A SUCCESSOR SOON 9302190123 930219 AIR CANADA ACCORD WITH DHL MONTREAL AIR CANADA REACHED AN AGREEMENT IN PRINCIPLE TO SELL ITS FIVE DC8 SERIES 73 CARGO AIRCRAFT TO DHL AIRWAYS INC IN A TRANSACTION THE COMPANIES VALUED AT MORE THAN 100 MILLION AIR CANADA SAID IT INTENDS TO MAINTAIN ITS CARGO OPERATIONS WITH LEASED AIRCRAFT DHL AIRWAYS A CLOSELY HELD REDWOOD CALIF COMPANY CALLED THE PURCHASE A MAJOR EXPANSION OF ITS FLEET WHICH NOW CONSISTS OF 69 MOSTLY SMALLER AIRCRAFT THE FIRST DC8 IS TO BE DELIVERED IN SEPTEMBER WITH THE FINAL DELIVERY EXPECTED BY APRIL 1993 DHL SAID IT WILL BASE THE PLANES AT ITS CINCINNATI HUB 9302190121 930219 TECHNOLOGY & HEALTH CELLULAR PHONE COMPANIES AGREE TO SET COMMON STANDARDS FOR NORTH AMERICA BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF 15 US AND CANADIAN CELLULAR TELEPHONE COMPANIES ANNOUNCED AN AGREEMENT TO SET COMMON STANDARDS FOR SERVICE AND OFFER SERVICE ACROSS NORTH AMERICA UNDER A NEW BRAND NAME MOBILINK MOBILINK SERVICE WILL COMPETE AGAINST ANOTHER NORTH AMERICAN ALLIANCE SPEARHEADED BY MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL CORP THAT ALLIANCE ALSO SETS CUSTOMER STANDARDS AND SELLS SERVICE UNDER A COMMON BRAND CELLULAR ONE JUST WHERE THE CELLULAR ONE BRAND STANDS WAS THROWN INTO QUESTION LAST YEAR WHEN AMERICAN TELEPHONE & TELEGRAPH CO ANNOUNCED PLANS TO BUY A SIGNIFICANT STAKE IN MCCAW AND SAID IT INTENDED TO MARKET CELLULAR SERVICE UNDER THE POWERFUL AT&T BRAND THE 15 COMPANIES EXPECT TO LAUNCH THE MOBILINK SERVICE NEXT SUMMER WITH A LARGESCALE ADVERTISING CAMPAIGN THAT WILL BE REINFORCED WITH REGIONAL ADS PLACED BY INDIVIDUAL CARRIERS THE SERVICE IS DESIGNED TO MAKE IT EASIER FOR CELLULAR PHONE CUSTOMERS TO PLACE AND RECEIVE CALLS WHEN THEY ARE TRAVELING FOR INSTANCE CALLERS WILL DIAL A SHORT ACCESS CODE ON THEIR PORTABLE PHONES WHEN THEY ARRIVE IN A NEW CITY AND THE CELLULAR NETWORK WILL DELIVER THEIR CALLS TO THEM EVENTUALLY CUSTOMERS WON'T NEED TO DIAL THE CODE INSTEAD NEW TECHNOLOGY WITHIN CELLULAR NETWORKS WILL BE ABLE TO TRACK THEM DOWN THE INSTANT THEY SWITCH ON THEIR PHONES IN ADDITION CUSTOMERS WILL DIAL STANDARD CODES FOR CUSTOMER SERVICE DIALING INSTRUCTIONS AND TECHNICAL ASSISTANCE PART OF THE MOBILINK SERVICE INCLUDES A 24HOUR CUSTOMER SERVICE LINE AND A NETWORK OF SERVICE CENTERS THAT WILL HANDLE MINOR REPAIRS AND PROVIDE LOANER PHONES THE MOBILINK ALLIANCE INCLUDES THE CELLULAR AFFILIATES OF ALLTEL CORP AMERITECH CORP BELL ATLANTIC CORP BELLSOUTH CORP CELLULAR INC CENTEL CORP CENTURY TELEPHONE ENTERPRISES INC GTE CORP MOBILITY CANADA AN ALLIANCE OF 12 CANADIAN CELLULAR COMPANIES NYNEX CORP PACIFIC TELESIS ROCHESTER TELEPHONE CORP SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP AND U S WEST INC THE 15 CARRIERS ALL AFFILIATES OF LOCAL PHONE COMPANIES OPERATE CELLULAR SYSTEMS THAT COVER ABOUT 83 OF THE POPULATION IN THE US AND CANADA AND OPERATE IN 161 OF THE TOP 200 MARKETS SAID LEE COX PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PACIFIC TELESIS GROUP'S PACTEL CORP UNIT WE'RE DOING IT BECAUSE EXTENSIVE RESEARCH SHOWS US THAT THIS IS WHAT CUSTOMERS WANT HE SAID CUSTOMERS ARE FRUSTRATED WHEN THEY ARRIVE IN A CITY AND CAN'T EASILY SEND OR RECEIVE CALLS ON THEIR PORTABLE PHONES AL BOSCHULTE PRESIDENT OF NYNEX'S CELLULAR UNIT AND CHAIRMAN OF THE MOBILINK BOARD SAID THAT INDIVIDUAL CARRIERS NOT THE COALITION WILL SET PRICES FOR SERVICES AND THAT THE MOBILINK BRAND NAME WILL BE USED ALONG WITH EACH CARRIER'S OWN BRAND WHEN THE FEDERAL COMMUNICATIONS COMMISSION ESTABLISHED CELLULAR PHONE SERVICE MORE THAN A DECADE AGO IT DESIGNATED TWO CARRIERS IN EACH MARKET ONE LICENSE WOULD GO TO AN INDEPENDENT COMPANY OR IN INDUSTRY JARGON THE ASIDE CARRIER AND THE OTHER LICENSE WOULD BE AWARDED A CELLULAR AFFILIATE OF THE LOCAL PHONE COMPANY THE BSIDE CARRIER THE CELLULAR ONE SERVICE IS GENERALLY USED BY THE SOCALLED ASIDE CARRIERS AND COMPANIES INVOLVED IN YESTERDAY'S ANNOUNCEMENT ARE BSIDE CARRIERS THE ANNOUNCEMENT CLEARLY BRIGHTENS THE LINE BETWEEN THE TWO SIDES EVEN THOUGH SEVERAL PHONE COMPANY CELLULAR AFFILIATES INCLUDING PACTEL BELLSOUTH U S WEST AND SOUTHWESTERN BELL HAVE ACQUIRED SOCALLED ASIDE LICENSES NOTICEABLY ABSENT FROM THE LIST WAS SOUTHWESTERN BELL BASED IN SAN ANTONIO A SOURCE FAMILIAR WITH THE SITUATION SAID THAT SOUTHWESTERN MAY STILL JOIN THE MOBILINK ALLIANCE BUT THAT FOR NOW ITS LAWYERS ARE EXAMINING ANTITRUST CONCERNS STEMMING FROM THE COMPANY'S JOINT OWNERSHIP OF THE CELLULAR ONE BRAND 9302190120 930219 CHANGE MADE AT HELM OF AGENCY BUILDING AIRPORT IN HONG KONG SPECIAL TO THE WALL STREET JOURNAL HONG KONG THE HEAD OF THE HONG KONG AUTHORITY RESPONSIBLE FOR BUILDING THE COLONY'S CONTROVERSIAL NEW AIRPORT AT CHEK LAP KOK WAS ABRUPTLY REPLACED THURSDAY A STATEMENT ISSUED BY THE PROVISIONAL AIRPORT AUTHORITY SAID RICHARD ALLEN IS LEAVING BY MUTUAL AGREEMENT AND WILL BE SUCCEEDED AS CHIEF EXECUTIVE OFFICER BY HENRY TOWNSEND MR TOWNSEND WHO TAKES THE CHIEF EXECUTIVE POST IMMEDIATELY WAS MOST RECENTLY CONSULTANT PROJECT MANAGER ON HONG KONG'S AIRPORT CORE PROGRAM WORKING IN THE GOVERNMENT'S NEW AIRPORTPROJECTS COORDINATION OFFICE AN AUTHORITY SPOKESMAN WOULDN'T ELABORATE ON THE DEPARTURE OF MR ALLEN WHO COULDN'T BE REACHED MR ALLEN SPEARHEADED THE AIRPORT PROJECT AND WAS THE AUTHORITY'S FIRST EMPLOYEE WHEN IT WAS CREATED IT 1990 A SPOKESMAN SAID AFTER FACING RESISTANCE FROM BEIJING BECAUSE OF ITS EXPECTED COST OF 160 BILLION HONG KONG DOLLARS US2069 BILLION THE PROJECT HAS BEEN WRAPPED UP IN THE FOURMONTH POLITICAL BATTLE CURRENTLY EMBROILING LONDON AND BEIJING AND BY MANY MEASURES THE PROJECT HAS STALLED DESPITE AN OCCASIONAL ANNOUNCEMENT OF A CONTRACT AWARD BY THE HONG KONG GOVERNMENT THE GOVERNMENT STATEMENT SAID IT REMAINED COMMITTED TO COMPLETING THE AIRPORT TO THE MAXIMUM EXTENT POSSIBLE BY 1997 WHEN THE COLONY BECOMES CHINESE 9302190119 930219 CLINTON'S ECONOMIC PACKAGE WHITE HOUSE GIVES DETAILS OF PRESIDENT'S 5YEAR PLAN BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S AMBITIOUS SPENDING PLAN BOTH PROPOSED INCREASES AND PROPOSED DECREASES DREW INTENSE SCRUTINY AS THE WHITE HOUSE RELEASED MORE DETAILS OF HIS RECOMMENDATIONS A 145PAGE SUMMARY OF THE PLAN A VISION OF CHANGE FOR AMERICA SHOWS THAT MR CLINTON PROPOSES TO SPEND A GRAND TOTAL OF 15 TRILLION IN THE FISCAL YEAR THAT BEGINS OCT 1 UP 26 FROM THE CURRENT YEAR THAT WOULD INCLUDE THE QUICK SPENDING INCREASES THAT MR CLINTON IS PROPOSING TO STIMULATE THE ECONOMY HIS FIVEYEAR PLAN SHOWS TOTAL FEDERAL OUTLAYS RISING AT AN ANNUAL RATE OF 33 BETWEEN THIS YEAR AND FISCAL 1997 WHICH BEGINS OCT 1 1996 WITHOUT ANY ADJUSTMENT FOR INFLATION OVER THE SAME PERIOD REVENUES ARE PROJECTED TO RISE AT AN ANNUAL RATE OF 65 ON THE SPENDING SIDE MUCH OF THE FOCUS NOW IS ON DOMESTIC SPENDING OTHER THAN GOVERNMENTBENEFIT PROGRAMS EVERYTHING FROM THE FEDERAL BUREAU OF INVESTIGATION TO NUCLEAR FUSION RESEARCH BECAUSE THAT IS WHERE MR CLINTON IS PROPOSING MOST CHANGES OF COURSE THE PRESIDENT ALSO IS RECOMMENDING CUTS IN DEFENSE SPENDING THOUGH THERE AREN'T MANY DETAILS OF HIS PLANS YET AND HE IS PROPOSING SOME CUTS IN BENEFIT PROGRAMS BUT OTHER TYPES OF DOMESTIC SPENDING KNOWN AS INVESTMENT IN CLINTONSPEAK WOULD GROW YOU CALL IT INVESTMENT REPUBLICAN SEN PETE DOMENICI OF NEW MEXICO TOLD TREASURY SECRETARY LLOYD BENTSEN AND DEPUTY BUDGET DIRECTOR ALICE RIVLIN I THINK THE AMERICAN PEOPLE CALL IT GOVERNMENT SPENDING ALTHOUGH THE BUDGET DOCUMENTS DON'T EXPLICITLY SAY SO DOMESTIC SPENDING WOULD GROW SO MUCH THAT MR CLINTON ALMOST SURELY WILL HAVE TO ASK CONGRESS TO INCREASE THE CAPS ON SPENDING THAT WERE SET IN THE BIPARTISAN 1990 DEFICITREDUCTION LAW AT THE SAME TIME HE PUSHES FOR BIG TAX INCREASES DISCRETIONARY DOMESTIC SPENDING ACCOUNTS FOR ABOUT 2617 BILLION OR APPROXIMATELY 18 OF FEDERAL OUTLAYS THIS YEAR DESPITE ALL THE PROPOSED SPENDING CUTS AND THERE ARE MANY MR CLINTON SEEKS TO INCREASE THIS CATEGORY OF SPENDING 37 A YEAR OVER THE NEXT FOUR YEARS DEFENSE SPENDING IN CONTRAST WOULD SHRINK 4 A YEAR HERE ARE SOME OF THE HIGHLIGHTS OF MR CLINTON'S SPENDING PROPOSALS THE LABOR DEPARTMENT WOULD CREATE A NEW YOUTHAPPRENTICESHIP PROGRAM DESIGNED TO HELP TRAIN THE ROUGHLY 75 OF HIGHSCHOOL GRADUATES WHO DON'T GO TO COLLEGE CURRENTLY THERE ARE ONLY PILOT PROGRAMS DOING SUCH WORK BUT UNDER THE CLINTON PLAN THE FEDERAL GOVERNMENT WOULD SPEND 270 MILLION IN THE YEAR BEGINNING OCT 1 TO PAY STATES AND LOCALITIES INTERESTED IN SETTING UP SUCH PROGRAMS LINKING PRIVATE INDUSTRY AND SCHOOLS THE ADMINISTRATION ALSO WOULD CONSOLIDATE AT THE LABOR DEPARTMENT VARIOUS LABOR DEFENSE AND ENERGY DEPARTMENT PROGRAMS DESIGNED TO RETRAIN DISPLACED WORKERS THE GOVERNMENT CURRENTLY SPENDS ABOUT 1 BILLION TO RETRAIN SUCH WORKERS WHO HAVE BEEN LAID OFF IN PLANT CLOSINGS OR CUT FROM THE MILITARY THE CONSOLIDATED EFFORT WOULD GET ABOUT TWICE AS MUCH MONEY EACH YEAR NO MATTER WHY YOU LOST YOUR JOB YOU OUGHT TO BE ABLE TO COME TO ONE PLACE FOR HELP SAID LABOR SECRETARY ROBERT REICH MR CLINTON IS CALLING FOR CUTS IN AN ARRAY OF SUBSIDIES FOR USES OF NATURAL RESOURCES A MOVE THAT'S SURE TO SET OFF A BRUISING BATTLE WITH WESTERN ECONOMIC INTERESTS AMONG OTHER PROPOSALS THE ADMINISTRATION PLANS TO RAISE GRAZING FEES ON INTERIOR DEPARTMENT AND AGRICULTURE DEPARTMENT LANDS IMPOSE A SURCHARGE ON WATER SALES TO RECLAMATION PROJECTS WITH PROCEEDS GOING TO HELP REDUCE HARM THAT IRRIGATION PROJECTS DO TO FISH AND WILDLIFE PHASE OUT TIMBER SALES IN WHICH THE PROCEEDS DON'T COVER THE GOVERNMENT'S COSTS OF MAKING THE TIMBER AVAILABLE AND IMPOSE A 125 ROYALTY ON THE GROSS VALUE OF HARDROCK MINERALS EXTRACTED FROM CLAIMS ON FEDERAL LANDS OFFICIALS ESTIMATE THE CHANGES COULD RAISE 1 BILLION OVER FIVE YEARS ALL THE PROPOSED CHANGES WOULD REQUIRE LEGISLATION AND ALL ARE LIKELY TO FACE STIFF OPPOSITION OPPONENTS ALREADY ARE CHARGING THAT THE CHANGES WOULD COST JOBS THE ADMINISTRATION IS PROPOSING JUST UNDER 500 MILLION IN JOBCREATING PROJECTS ON INTERIOR DEPARTMENT LANDS WITH 270 MILLION IN INFRASTRUCTURE AND NATURAL RESOURCES PROJECTS AT THE NATIONAL PARKS BUT HERE TOO OFFICIALS ARE SEEKING TO BOOST REVENUE THROUGH AN INCREASE IN RECREATION FEES MR CLINTON'S PLAN TO LET COLLEGE STUDENTS BORROW DIRECTLY FROM THE GOVERNMENT IS DRAWING FIRE FROM THE BANKING INDUSTRY WHICH STANDS TO LOSE BUSINESS UNDER THE PROPOSAL BUT SUPPORTERS SAY IT WILL BE A BIG MONEYSAVER THE CHANGE WHICH WOULD BE PHASED IN BY 1997 WOULD LET STUDENTS BORROW DIRECTLY FROM THE GOVERNMENT THROUGH THEIR COLLEGES BYPASSING BANKS THE SAVINGS IS ESTIMATED AT 13 BILLION IN ADMINISTRATIVE AND OTHER COSTS OVER FOUR YEARS BANKS AND THE STUDENT LOAN MARKETING ASSOCIATION OR SALLIE MAE DISPUTE THOSE ESTIMATES AND THEY'RE LOBBYING HARD TO PRESERVE THE PROGRAM THE CURRENT GOVERNMENTGUARANTEE PROGRAM PAYS BANKS FEES TO ISSUE THE LOANS SALLIE MAE A PRIVATE GOVERNMENTSPONSORED CORPORATION ACTS AS A SECONDARY MARKET BY BUYING THE LOANS FROM THE BANKS IT SAYS DIRECT LENDING WILL NOT PRODUCE ANY REAL SAVINGS FOR TAXPAYERS SCHOOLS OR STUDENTS IN THE ACTUAL DELIVERY OF LOANS BUT WOULD SHIFT GREAT RISK AND COSTS TO STATES SCHOOLS AND TAXPAYERS SALLIE MAE'S STOCK FELL EARLIER THIS MONTH AFTER A CONGRESSIONALLY MANDATED COMMISSION CALLED FOR OVERHAULING THE COLLEGEAID SYSTEM IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SALLIE MAE PLUNGED 9375 TO 4725 AS 47 MILLION SHARES WERE TRADED MR CLINTON ALSO CALLED FOR SPENDING 6 BILLION OVER FOUR YEARS TO PHASE IN A NEW NATIONAL SERVICE PROGRAM ALLOWING STUDENTS TO PAY BACK COLLEGE LOANS THROUGH COMMUNITY SERVICE THOUGH DETAILS WERE SKETCHY THE WHITE HOUSE OFFICE OF NATIONAL SERVICE SAID YOUNG PEOPLE WHO SERVED THEIR COUNTRY IN THOUSANDS OF NEW SERVICE JOBS CREATED UNDER THE PROGRAM WOULD RECEIVE A SIGNIFICANT FINANCIAL BENEFIT TO PAY FOR COLLEGE IN RETURN THE CLINTON BUDGET ASKS FOR 354 MILLION OVER THE NEXT FOUR YEARS TO HELP FINANCE THE CREATION OF A NETWORK OF COMMUNITY DEVELOPMENT BANKS TO PROVIDE LOANS FOR BUSINESS AND HOUSING PURPOSES IN DISTRESSED COMMUNITIES THAT HAVE PREVIOUSLY BEEN UNDERSERVED BY TRADITIONAL LENDING INSTITUTIONS AN ADMINISTRATION TASK FORCE RECENTLY STARTED MEETING TO FLESH OUT THE DETAILS OF A COMMUNITY DEVELOPMENT BANK PLAN MR CLINTON SPOKE FREQUENTLY OF THE NEED FOR SUCH BANKS DURING THE CAMPAIGN AND HE NOTED THE ROLE OF SOUTH SHORE BANK IN FINANCING THE REHABILITATION OF A CHICAGO NEIGHBORHOOD DANIEL GOLDIN HEAD OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SAID THE 30 BILLION SPACE STATION PROJECT WILL BE SCALED DOWN TO A MORE STREAMLINED COSTEFFECTIVE DESIGN MR GOLDIN IN HIS FIRST COMMENTS ON MR CLINTON'S SKETCHY PLANS TO REDESIGN THE ORBITING LABORATORY SAID NASA OFFICIALS WILL COME UP WITH NEW DESIGNS EXPECTED WITHIN 90 DAYS THAT INCREASE THE PROJECT'S EFFICIENCY AND PRODUCE GREATER RETURNS ON OUR INVESTMENT LEFT UNCLEAR IS HOW MUCH LESS A NEW PAREDDOWN STATION MIGHT COST TO BUILD AND OPERATE OR HOW IT WILL DIFFER FROM THE PROPOSED SPACE STATION FREEDOM WHICH WAS TO HOUSE FOUR ASTRONAUTS BEGINNING IN THE YEAR 2000 DISFAVOR HAS BEEN MOUNTING WITH THE CURRENT PROJECT BECAUSE OF COST OVERRUNS AND COMPLAINTS OF POOR MANAGEMENT SHAKING UP THE ALREADY CONTROVERSIAL PROJECT WILL GIVE MORE AMMUNITION TO OPPONENTS ON CAPITOL HILL WHO INTEND AGAIN TO TRY TO KILL IT CHAIRMAN GEORGE BROWN D CALIF OF THE HOUSE SCIENCE COMMITTEE WHO MET YESTERDAY WITH MR GOLDIN SAID ONE POSSIBILITY UNDER CONSIDERATION IS TO CONVERT FROM A PERMANENTLY MANNED STATION TO ONE THAT WOULD BE VISITED PERIODICALLY BY ASTRONAUTS WHO WOULD TEND TO EXPERIMENTS LEFT IN THE SPACE MODULE REP BROWN SAID PIECES OF THE SPACE LAB NOW BEING FASHIONED BY THE EUROPEAN SPACE AGENCY AND JAPANESE SPACE AGENCY THE PROJECT'S INTERNATIONAL PARTNERS ALONG WITH CANADA WILL STILL BE USED ALTHOUGH MR GOLDIN MORE GENERALLY SAID THE US WILL ASSURE THE CONTINUED PARTICIPATION OF ITS INTERNATIONAL PARTNERS SPACE ANALYSTS ARE ALREADY QUESTIONING WHETHER THE SPACE STATION WILL BE WORTH BUILDING IF IT'S DOWNSIZED TOO MUCH AND MERELY RESEMBLES THE RUSSIANS' CURRENTLY ORBITING MODULE MIR BUT THE WHITE HOUSE'S PLANS FOR THE SPACE STATION HAVE VASTLY INCREASED CHANCES THAT MR GOLDIN WILL BE KEPT ON AS HEAD OF THE AGENCY MR GOLDIN WHO CAME TO THE JOB LAST YEAR HAD TRIED ON HIS OWN TO LOOK FOR WAYS TO MAKE THE STATION SMALLER AND CHEAPER 9302190118 930219 LABOR PEACE BOOSTS EXPORTS OF SOUTH KOREAN AUTOS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S AUTOMOBILE EXPORTS IN JANUARY SURGED TO 39685 UNITS FROM 6381 UNITS A YEAR EARLIER LARGELY BECUASE OF THE PEACE IN LABORMANAGEMENT RELATIONS ACCORDING TO THE TRADE AND INDUSTRY MINISTRY IMPROVED LABORMANAGEMENT RELATIONS PARTICULARLY AT THE NATION'S LARGEST AUTO MAKER HYUNDAI MOTOR CO HELPED TO BRING ABOUT THE BIG PERFORMANCE BECAUSE OF BITTER LABOR DISPUTES HYUNDAI FAILED TO SHIP 24000 ORDERED UNITS IN JANUARY 1992 SHIPMENTS TO NORTH AMERICA INCLUDING CANADA AND THE US QUADRUPLED TO 12011 UNITS EXPORTS TO EUROPE SOARED TO 10061 UNITS AND SHIPMENTS TO ASIAPACIFIC COUNTRIES JUMPED FIVEFOLD TO 6633 UNITS IN THE DOMESTIC MARKET SOUTH KOREAN CAR MAKERS SOLD 9600 UNITS UP 35 FROM A YEAR EARLIER BECAUSE OF INCREASED DEMAND FOR NEW MODELS 9302190117 930219 ADVERTISING ADVERTISERS WALK TIGHTROPE BALANCING TAXES AND HOPE BY KEVIN GOLDMAN SHORTLY AFTER PRESIDENT CLINTON FINISHED HIS SPEECH BEFORE A JOINT SESSION OF CONGRESS WEDNESDAY EVENING JOSEPH E ANTONINI CHAIRMAN OF KMART APPEARED IN A TV COMMERCIAL TO MAKE AN ADDRESS OF HIS OWN MR ANTONINI APPEARED PROPHETIC IN A PRERECORDED PITCH ANTICIPATING THAT THE PRESIDENT WOULD RECOMMEND HIGHER TAXES AND DEEP SPENDING CUTS THAT PUT THE BRAKES ON ANY NOTION THAT HAPPY DAYS ARE HERE AGAIN THE KMART CHAIRMAN USED A NONONSENSE TONE IN A STARK OFFICE SETTING YOU KNOW MR ANTONINI BEGAN IT'S MY RESPONSIBILITY TO MAKE SURE YOU GET THE LOW LOW PRICES YOU WANT ANY TIME AND EVERY TIME YOU SHOP AT KMART NOW THAT'S MY PROMISE WE HAD TO OFFER A TIMELY MESSAGE FOR THE AMERICAN FAMILY SAYS PETER HIRSCH VICE CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR OF KMART'S AD AGENCY CALE HIRSCH & FERRELL DESPITE UPTICKS IN THE ECONOMY SAYS MR HIRSCH I DON'T SEE CONSUMERS GETTING A QUICK INFLUX OF CASH AND GOING OFF TO SPEND A LOT AGAIN ADVERTISERS ARE PERFORMING A HIGHWIRE ACT TRYING TO BALANCE DISSONANT SIGNALS RIPPLING THROUGH THE ECONOMY AMID CLEAR SIGNS OF A TURNAROUND AND IMPROVED CONSUMER CONFIDENCE THEY ARE ITCHING TO TRUMPET THE MESSAGE OF BUY BUY BUY BUT WITH A NEW PRESIDENT'S WARNING OF TOUGH TIMES AND NEW TAXES AHEAD MARKETERS MUST SIMULTANEOUSLY ACKNOWLEDGE THE TIGHT BUDGETS OF MANY AMERICANS WITHOUT INCLUDING SUCH GLOOMY TERMS AS SACRIFICE MADISON AVENUE EAGERLY ANTICIPATED THE REBOUND IN CONSUMER HOPES THAT FOLLOWED THE ELECTION OF PRESIDENT CLINTON IN NOVEMBER NOW AFTER MR CLINTON'S SPEECH THOSE HOPES ARE STALLED ADVERTISING EXECUTIVES SAY AND THE INDUSTRY MUST NOW DECIDE HOW TO CONVEY A TWOPRONGED MESSAGE IN THEIR ADVERTISINGOR WHETHER TO IGNORE THE PRESIDENT'S CALL FOR SACRIFICE ALTOGETHER SOME CAMPAIGNS ARE UNINTENTIONALLY AT ODDS WITH THE NEW RESTRAINT LAST YEAR MERCEDESBENZ PUT FORTH THE BOLD CHALLENGE SACRIFICE NOTHING THAT SLOGAN IS BEING PHASED OUT ALTHOUGH MERCEDES AGENCY SCALI MCCABE SLOVES SAID THAT ISN'T BECAUSE OF MR CLINTON'S PITCH NOW VALUE AND UTILITY ARE UPPERMOST IN THE MINDS OF MOST ADVERTISERS IT'S HARD TO SELL ANY LUXURY PRODUCT UNLESS YOU SHOW A REAL REASON TO BUY IT SAYS MARVIN SLOVES THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE SO YOU HAVE TO STRESS VALUE FOR INSTANCE ONE RECENT MERCEDES COMMERCIAL SHOWS A MAN THINKING OF SELLING HIS USED MERCEDES ALTHOUGH HE GETS EXCELLENT RESALE OFFERS HE DECIDES TO GIVE THE CAR TO HIS SON WE HAVE TO STRESS SAFETY AND RESALE VALUES SAYS MR SLOVES CONTRADICTORY SIGNALS IN THE ECONOMY POSE A CONTINUING PROBLEM FOR US SAYS MARTIN PURIS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMMIRATI & PURIS THE AGENCY BEHIND ONE OF THE MOST VISIBLE SYMBOLS OF CONSPICUOUS CONSUMPTION OF THE '80S THE BMW PEOPLE DON'T FEEL CONFIDENT TO LET LOOSE WITH THEIR CASH THAT IS ONE DRIVING FORCE BEHIND NEW KMART ADS WHICH BEGAN AIRING SUNDAY KMART'S RESEARCH SHOWS THAT CONSUMERS SIMPLY FEEL THEY HAVE LESS MONEY TO SPEND ON EVERYDAY ITEMS SO THE BIG RETAILER WHICH RECENTLY HAD FEATURED ATTRACTIVE PROFESSIONAL WOMEN PRAISING KMART'S FASHION SAAVY CHOSE TO ELEVATE ITS MESSAGE OF LOW PRICES CONSUMERS ARE CLEARLY MORE SENSITIVE TO THAT MESSAGE SAYS JANE SINGER DIRECTOR OF MARKETING AND STRATEGIC PLANNING AT CALET HIRSCH THE MESSAGE FROM LUCKY STORES A SUPERMARKET CHAIN IN CALIFORNIA IS EVEN MORE DIRECT IN ITS NEW TV COMMERCIALS LUCKY'S CHAIRMAN AND CHIEF EXECUTIVE LARRY DELSANTO TELLS VIEWERS BUSINESS AS USUAL WON'T CUT IT ANYMORE FAMILIES CAN'T AFFORD IT THE SUPERMARKET IS REDUCING COSTS WORKING SMARTER AND PASSING THOSE SAVINGS ON TO OUR CUSTOMERS THE EXECUTIVE SAYS THE CHAIN REDUCED PRICES ON 2500 PRODUCTS TIMES GOT TOUGH HE SAYS IN THE AD WE GOT TOUGHER ADVERTISING CAN'T BE GLOOM AND DOOM SAYS ALAN KUPCHICK PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR OF GREY ADVERTISING'S LOS ANGELES OFFICE WHICH CREATED THE LUCKY SPOTS YOU HAVE TO GIVE CONSUMERS HOPE MR KUPCHICK SAYS IT'S ALL RIGHT TO TALK ABOUT HARSH ECONOMIC REALITIES AS LONG AS YOU GIVE THEM SOMETHING IN RETURN BUT SPONSORS SHOULDN'T OVERDO IT SACRIFICE WHICH IS BEING STRESSED BY THE CLINTON ADMINISTRATION IS THE ANTITHESIS IN ADVERTISING SAYS ROLAND MERCHAND PROFESSOR OF HISTORY AT THE UNIVERSITY OF CALIFORNIA AT DAVIS AND AUTHOR OF ADVERTISING THE AMERICAN DREAM MAKING WAY FOR MODERNITY 19201940 HE SAYS IT IS A CHALLENGING TIME BUT MADISON AVENUE NEVER RESPONDS BETTER CREATIVELY THAN IN CHALLENGING TIMES ADVERTISING MUST TAKE SUCH AN HONEST CREDIBLE AND INFORMATIONAL PATH SAYS STEVE NOVICK GREY'S EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER THEY MUST TAKE A FRIENDLY APPROACH TO SAY 'WE'RE ALL IN THIS TOGETHER' THAT'S WHAT CLINTON WAS SAYING IN HIS SPEECH MR CLINTON'S PATRIOTIC APPEAL TO VIEWERS MAY ALSO INSPIRE ADVERTISERS TO WAVE THE FLAG IN PRINT AND TV SPOTS SOME MARKETING EXPERTS BELIEVE HE WAS EMPHASIZING THE FACT THAT AMERICANS SHOULD PULL TOGETHER SAYS DAVID URBAN ASSISTANT PROFESSOR OF MARKETING AT VIRGINIA COMMONWEALTH UNIVERSITY I WOULDN'T BE SURPRISED TO SEE PATRIOTIC THEMES FOR SUCH PRODUCTS AS AUTOMOBILES CLOTHING AND APPLIANCES HE SAYS THOUGH MAINLY THOSE THAT ARE MADE IN THIS COUNTRY CIBA CONSUMER PHARMACEUTICALS A UNIT OF CIBAGEIGY LTD FIRED KETCHUM ADVERTISING NEW YORK FROM AN ESTIMATED 10 MILLION CONSUMERPRODUCT ACCOUNT ASSIGNING THE BRANDS TO ANOTHER AGENCY ON ITS ROSTER JORDAN MCGRATH CASE & TAYLOR NEW YORK THE MOVE WHICH INCLUDES ACCOUNTS FOR BRANDS SUCH AS DOAN'S PILLS EUCALYPTAMINT AND FIBERALL CONSOLIDATES AN ESTIMATED 27 MILLION IN CONSUMER ADVERTISING WITH JORDAN MCGRATH THE AGENCY GOT A TOEHOLD ON THE ACCOUNT LAST YEAR BY WINNING THE ACUTRIM AND DULCOLAX ACCOUNTS KETCHUM ADVERTISING IS A UNIT OF KETCHUM COMMUNICATIONS PITTSBURGH THREE FORMER EXECUTIVES AT THE SAN FRANCISCO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM FILED A LAWSUIT AGAINST THE AGENCY IN SAN FRANCISCO SUPERIOR COURT ALLEGING AMONG OTHER THINGS WRONGFUL DISMISSAL AND BREACH OF CONTRACT DDB NEEDHAM DISMISSED THE THREE TOP EXECUTIVES AT ITS SAN FRANCISCO OFFICE ANDREW HYETT SCOTT HEIMBRODT AND ANTHONY BROADBENT LAST WEEK THEY FILED SUIT ON TUESDAY ALLEGING THAT THEY HAD MADE A VERBAL AGREEMENT WITH DDB IN NOVEMBER TO BUY THE AGENCY'S SAN FRANCISCO OPERATIONS WHICH THEY SAY ARE LOSING MONEY BECAUSE OF UNFAVORABLE TERMS FOR LEASING OFFICE SPACE THE AGENCY BROKE THE PACT LAST WEEK THE PLAINTIFFS SAY BY FIRING THEM AND NAMING JULIO DEULOFEU A TOP EXECUTIVE AT DDB'S LOS ANGELES OFFICE TO THE POST OF PRESIDENT SAN FRANCISCO AN AGENCY SPOKESMAN DECLINED TO COMMENT ON THE MATTER NYNEX CORP IS BREAKING 15 NEW CORPORATE COMMERCIALS DURING PRESIDENT CLINTON ANSWERING CHILDREN'S QUESTIONS A Q&A SESSION WITH THE PRESIDENT PRODUCED BY ABC NEWS SET TO AIR ON THE NETWORK TOMORROW MORNING NYNEX THE SHOW'S SOLE SPONSOR HIRED THE POLITICAL ADVERTISING FIRM SAWYER/MILLER AND NEW YORK SHOP AMIL GARGANO & PARTNERS TO CREATE 14 MINUTES OF ADVERTISING SPECIFICALLY FOR THE SHOW THE SPOTS ARE EXCERPTS FROM INTERVIEWS WITH CHILDREN AGES EIGHT TO 16 WHO TALK ABOUT THEIR HEROES FEARS AND RELATIONSHIPS WITH THEIR PARENTS THE SPOTS END WITH THE SENTIMENT WE CAN LEARN FROM OUR CHILDREN TALK TO THEM OFTEN AND THE NYNEX LOGO LAST YEAR NYNEX SPONSORED A SIMILAR CHILDREN'S SPECIAL ON THE CAPTIAL CITIES/ABC NETWORK AIRING SPOTS THAT EXPLAINED HOW TELEPHONES AND FIBER OPTICS WORK WPP GROUP'S OGILVY & MATHER THE AGENCY ON NYNEX'S CORPORATE ACCOUNT CREATED THAT CAMPAIGN GREY GREY ADVERTISING NEW YORK REPORTED FOURTHQUARTER NET INCOME OF 54 MILLION OR 450 A SHARE COMPARED WITH A LOSS IN THE YEAREARLIER QUARTER OF 57 MILLION OR 457 A SHARE FOR THE YEAR NET INCOME WAS 165 MILLION OR 1318 A SHARE COMPARED WITH 43 MILLION OR 351 A SHARE IN 1991 WHEN THE AGENCY TOOK A ONETIME RESTRUCTURING CHARGE OF 11 MILLION REVENUE IN 1992 WAS 5645 MILLION COMPARED WITH 5283 MILLION IN 1991 DR SEUSS SPOT THE CHARACTERS OF THE LATE THEODOR SEUSS GEISEL AKA DR SEUSS HAVE DONE THEIR FIRST COMMERCIAL DEAL APPEARING IN A SPOT FROM KELLOGG THAT PROMOTES LITERACY AND BREAKFAST CEREAL KELLOGG IS GIVING AWAY 500000 COPIES OF DR SEUSS CLASSICS TO NEEDY SCHOOLS AND OFFERING CONSUMERS THE CHANCE TO GET FREE COPIES OF OTHER DR SEUSS BOOKS BY SENDING IN PROOFSOFPURCHASE FROM ITS CHILDREN'S CEREALS BOB COLVIN AGENT TO THE CAT IN THE HAT AND THE GRINCH SAYS SOME THINGS REMAIN OFFLIMITS THE BELOVED CHARACTERS WON'T BE ENDORSING SINGLE PRODUCTS ACCOUNT STUART ANDERSON'S RESTAURANTS A UNIT OF AMERICAN RESTAURANT GROUP TAPPED SAN FRANCISCO AGENCY GOLDBERG MOSER O'NEILL TO HANDLE ITS ESTIMATED 10 MILLION ACCOUNT THE ACCOUNT WAS PREVIOUSLY HANDLED BY THE SAN FRANCISCO OFFICE OF WPP GROUP'S J WALTER THOMPSON 9302190116 930219 GERMANY'S 5 WISE MEN' MULL NEW ECONOMIC REPORT FRANKFURT GERMANY'S SOCALLED FIVE WISE MEN WILL DISCUSS WHETHER TO PRODUCE A SPECIAL ECONOMIC REPORT AT THEIR FEB 2526 MEETING A MEMBER OF THE GROUP TOLD THE GERMAN NEWS SERVICE VWD THE FIVE WISE MEN ARE SIMILAR TO THE COUNCIL OF ECONOMIC ADVISERS IN THE US THE MEMBER RUEDIGER POHL TOLD VWD THAT HE CONSIDERS THE BASIC STATEMENTS MADE IN THE MOST RECENT REPORT RELEASED IN NOVEMBER ARE STILL VALID HE SUGGESTED THAT A LETTER TO CHANCELLOR HELMUT KOHL MAY BE MORE APPROPRIATE IN THE NOVEMBER REPORT THE GROUP PREDICTED THAT WESTERN GERMANY'S ECONOMY WOULD STAGNATE DURING 1993 AT THE TIME ZERO GROWTH WAS AT THE LOWER RANGE OF FORECASTS SINCE THEN HOWEVER PRIVATE ECONOMISTS INCREASINGLY HAVE PREDICTED THE ECONOMY WILL CONTRACT BY AS MUCH AS ABOUT 1 THE GROUP LAST WROTE A SPECIAL LETTER TO THE CHANCELLOR WHEN THE GERMAN MONETARY UNION WAS BEING DISCUSSED IN FEBRUARY 1990 9302190115 930219 NEW YORK'S REGAN SAYS HE WILL RETIRE AS STATE COMPTROLLER ALBANY NY EDWARD V REGAN NEW YORK STATE'S COMPTROLLER AND HEAD OF ITS 55 BILLION PENSION PLAN FOR THE LAST 14 YEARS ANNOUNCED THAT HE WILL RETIRE IN MAY TO HEAD A RESEARCH CENTER AT BARD COLLEGE MR REGAN 62 YEARS OLD IS RESIGNING MORE THAN TWO YEARS BEFORE HIS TERM AS COMPTROLLER ENDS TO BECOME PRESIDENT OF THE JEROME LEVY ECONOMICS INSTITUTE THE STATE LEGISLATURE IS RESPONSIBLE FOR APPOINTING A NEW COMPTROLLER AND WILL VOTE ON A SUCCESSOR AFTER MR REGAN LEAVES IN MAY ALREADY CAROL BELLAMY FORMER NEW YORK CITY COUNCIL PRESIDENT AND A MANAGING DIRECTOR AT BEAR STEARNS COS HAS THROWN HER HAT IN THE RING FOR THE COMPTROLLER'S SEAT SHE WAS DEFEATED IN THE 1990 ELECTION FOR COMPTROLLER BY MR REGAN AS COMPTROLLER MR REGAN OVERSEES NEW YORK'S BUDGET AND SERVES AS SOLE TRUSTEE FOR THE STATE'S PENSION FUND FOR 860000 STATE GOVERNMENT EMPLOYEES HIS POSITION IS UNUSUAL AMONG TOP ADMINISTRATORS OF STATE PENSION PLANS IN THAT HE IS ELECTED AND IS THE SOLE TRUSTEE OF THE PLAN HIS RESIGNATION COULD BRING A CHANGE IN STRATEGY AT THE NEW YORK STATE PENSION PLAN WHICH HAS TYPICALLY TAKEN A BACK SEAT ON SHAREHOLDER ISSUES TO THE LARGER AND MORE VOCAL CALIFORNIA STATE PENSION FUND NEW YORK LEGISLATORS MAY NOW APPOINT SOMEONE WITH A MANDATE TO TAKE ADVANTAGE OF THE POTENTIALLY POWERFUL POSITION OF THE FUND WHICH HOLDS INVESTMENTS IN MANY OF THE NATION'S LARGEST CORPORATIONS I THINK THIS IS VERY SIGNIFICANT SAID RICHARD KOPPES GENERAL COUNSEL AT THE CALIFORNIA PENSION PLAN WE COULD SEE A LOT MORE ACTIVISM FROM NEW YORK RECENTLY MR REGAN SHOWED SIGNS THAT THE NEW YORK FUND WAS INTERESTED IN PLAYING A BIGGER ROLE AS AN INSTITUTIONAL SHAREHOLDER LAST WEEK HE UNVEILED A PLAN TO PRESSURE GREAT ATLANTIC & PACIFIC TEA CO FOR BETTER FINANCIAL PERFORMANCE A&P WAS THE FIRST TARGET UNDER A NEW SYSTEM DESIGNED TO IDENTIFY COMPANIES WITH POOR STOCK MARKET PERFORMANCE MR REGAN WAS A FREQUENT CRITIC OF NEW YORK'S ATTEMPT TO BALANCE THE BUDGET THROUGH THE USE OF ONETIME ITEMS WITHOUT OVERALL FISCAL REFORM AT THE LEVY INSTITUTE MR REGAN WILL SUCCEED LEON BOTSTEIN WHO CONTINUES AS PRESIDENT OF BARD COLLEGE WHICH IS IN ANNANDALEONHUDSON NY 9302190114 930219 LEISURE & ARTS BOOKSHELF BEYOND ADAM DALGLEISH BY LEE LESCAZE BARONESS JAMES OF HOLLAND PARK AS PD JAMES HAS BEEN TITLED SINCE 1991 HERE TURNS AWAY FROM HER POPULAR SCOTLAND YARD COMMANDER ADAM DALGLEISH TO DEAL WITH A WIDER MYSTERY PROMISING DEATHS BY THE MILLIONS AND THE LOOMING EXTINCTION OF HUMANKIND THE CHILDREN OF MEN KNOPF 241 PAGES 22 MS JAMES'S 12TH WORK OF FICTION IS HER ENTRY IN THE CROWDED FIELD OF NOVELS THAT PROJECT AN APPALLING TOTALITARIAN FUTURE AND/OR THE DEATH OF OUR SPECIES IT IS 2021 AND HUMANKIND IS DOOMED BECAUSE ALL MALES HAVE BEEN STERILE SINCE THE LAST BABIES WERE BORN IN 1995 AN AGING SHRINKING POPULATION IS LISTLESSLY DRIFTING TOWARD EXTINCTION BRITAIN IS RULED BY A TOTALITARIAN COUNCIL HEADED BY THE WARDEN OF ENGLAND XAN LYPPIATT PRODUCT OF A BRIDESHEADSTYLE GILDED YOUTH BUT DRIVEN BY AN OVERABUNDANCE OF EGO AND HUNGER FOR POWER MS JAMES'S PROTAGONIST IS 50YEAROLD OXFORD HISTORIAN THEODORE FARON A SELFISH WITHDRAWN MAN WHO HAPPENS TO HAVE SPENT BOYHOOD SUMMERS WITH LYPPIATT AS A RESULT OF HAVING BEEN THE GOLDEN YOUTH'S POOR COUSIN THE NOVEL A BOOKOFTHEMONTH CLUB MAIN SELECTION ISSUED IN A FIRST PRINTING OF 125000 COPIES TRACES FARON'S TRANSFORMATION FROM A SPECTATOR KEEPING HIMSELF FROM ANY MEANINGFUL CONTACT WITH THE BLIGHTED WORLD AROUND HIM INTO A MAN OF ACTION FIGHTING BRAVELY TO DEFY THE WARDEN FOR THE SAKE OF THE WOMAN HE LOVES IT IS AN UNLIKELY ALCHEMY I AM FIFTY YEARS OLD AND I HAVE NEVER KNOWN WHAT IT IS TO LOVE FARON WHO HAS BEEN MARRIED AND FATHERED A CHILD REMARKS AS HE BEGINS TO FALL FOR THE MYSTERIOUS WOMAN JULIAN AT HER REQUEST HE TAKES SEVERAL COMPLAINTS TO THE WARDEN ABOUT OFFICIALLY SANCTIONED INHUMANITIES PRACTICED AGAINST THE ELDERLY FOREIGN WORKERS AND PRISONERS AS FARON PAYS CLOSER ATTENTION TO SOCIETY AROUND HIM HE COMES TO BELIEVE THAT SOME OF ITS ABOMINATIONS PARTICULARLY THE GOVERNMENTRUN MASS DROWNINGS OF THE FEEBLE AND SENILE MUST BE HALTED JULIAN TELLS HIM THE WORLD IS CHANGED NOT BY THE SELFREGARDING BUT BY MEN AND WOMEN PREPARED TO MAKE FOOLS OF THEMSELVES THE BEST NOVELS OF THIS GENRE WORKS LIKE 1984 BRAVE NEW WORLD AND THE HANDMAID'S TALE HAVE A POLITICAL AIM THEIR AUTHORS SET OUT TO PORTRAY A SYSTEM OF GOVERNMENT THAT APPALLS BUT CAN WITH A STRETCH OF THE IMAGINATION BE SEEN AS FLOWERING FROM CONTEMPORARY TRENDS THEY SUCCEED IN DIRECT RELATION TO HOW CONVINCINGLY THE HORRID DETAILS OF THE IMAGINED FUTURE SYSTEM ARE DEVELOPED THE MECHANISM OF THE ORGANISM MUST FASCINATE THE CHILDREN OF MEN HOWEVER SPENDS LITTLE TIME DETAILING THE INNER WORKINGS OF THE RULING CIRCLE THE GEARS AND COGS OF THE WARDEN'S ADMINISTRATION ARE SEEN ONLY FLEETINGLY FROM WITHOUT WHAT'S MORE MS JAMES HAS NO POLITICAL PROGRAM TO ADVANCE HUMANKIND'S THREATENED EXTINCTION IS A MYSTERIOUS BIOLOGICAL DISASTER NOT ONE ENGINEERED BY PEOPLE THE WARDEN IS EVIL BUT HE IS ALSO AS CONCERNED ABOUT HUMANKIND'S DOOM AS ANYONE ELSE HE HAS SPENT THE NATION'S SCIENTIFIC ENERGIES ON FUTILE ATTEMPTS TO UNDERSTAND THE CAUSE OF THE STERILITY AND ON MASSIVE TESTING IN SEARCH OF ONE FERTILE MALE INSTEAD OF A POLITICAL PURPOSE MS JAMES HAS A CHRISTIAN ONE PERHAPS ONLY GOD COULD BLIGHT EARTH WITH INFERTILITY HER NOVEL SUGGESTS THIS GIVES TO HUMANITY THE OPTIONS JOB HAD TO CURSE GOD OR TO BELIEVE AND PRAISE IT IS OF COURSE THE FAITHFUL WHO SHALL REDEEM THE WORLD JULIAN IS A BELIEVER SO IS LUKE A PRIEST WHO JOINS HER IN A DESPERATELY SMALL WEAK GUERRILLA MOVEMENT NONE TOO SUBTLY LUKE TAKES ON CHRISTLIKE ATTRIBUTES EVEN CARRYING THE PROMISE OF REDEMPTION DESPITE THE WEAKNESSES OF THE NOVEL'S FRAMEWORK AND THE FACT THAT FARON IS THE SINGLE CHARACTER PRESENTED IN ANY DETAIL MS JAMES IS AN EXPERT AT UNFOLDING A STORY WITH VIGOR AND PACE THE LENGTHY FINAL SECTION IS A CHASE AS FARON JULIAN AND THEIR FELLOWS TRY TO ESCAPE THE FORCES OF THE WARDEN LONG ENOUGH FOR THE MIRACULOUS SURPRISE ON WHICH THE PLOT TURNS TO TAKE PLACE IT IS DRAMATIC AND ABSORBING ONLY SLIGHTLY MARRED BY CLICHES SUCH AS MS JAMES'S INSISTENCE ON REFERRING TO A MIDWIFE AS THE PRACTITIONER OF AN ANCIENT ART AND ONE CHARACTER'S OBSERVATION TO ANOTHER THAT GUILT IS PART OF BEING HUMAN OR HADN'T YOU NOTICED MORE OFTEN MS JAMES HAS AN APT PHRASE OR OBSERVATION EARLY ON FARON NOTES THAT HIS FIELD HISTORY IS THE LEAST REWARDING STUDY FOR A DYING SPECIES HER DIALOGUE IS CRISP AS WHEN FARON STAYS AT A RARELY VISITED BED AND BREAKFAST WHERE THE PROPRIETESS CALLS HIM AN ANSWER TO HER PRAYERS SHE EXPLAINS THAT SHE WAS THINKING OF CLOSING DOWN BUT PRAYED TO GOD FOR ADVICE AND HE SENT FARON AS A SIGN I ALWAYS FIND DON'T YOU THAT WHEN YOU'RE IN REAL TROUBLE FACED WITH PROBLEMS WHICH SEEM TOO MUCH FOR YOU AND JUST ASK HE DOES ANSWER NO I CAN'T SAY THAT'S BEEN MY EXPERIENCE REPLIES FARON THE PROBLEM IS THAT THE TRANSFORMATION OF THIS CYNICAL EARLY STANCE INTO THE FARON WHO PERFORMS ONE OF THE RITES OF THE CHRISTIAN CHURCH IS NOT WHOLLY CONVINCING IT REQUIRES A LEAP OF FAITH FARON TAKES HIS BUT I THINK NOT ALL READERS WILL FIND THEMSELVES JUMPING WITH HIM 9302190113 930219 FOR INDUSTRIES ALTERED EXPECTATIONS A WALL STREET JOURNAL NEWS ROUNDUP US BUSINESS SEEMS TO BE REACTING AS THOUGH PRESIDENT CLINTON'S ECONOMIC PLAN IS A DONE DEAL NO MATTER THAT CONGRESSIONAL APPROVAL IS REQUIRED FOR THE PLAN'S KEY ELEMENTS OR THAT THE REPUBLICAN OPPOSITION WILL FIGHT FOR CHANGES EXECUTIVES IN INDUSTRIES RANGING FROM HIGH TECHNOLOGY TO TRAVEL ARE FOR THE MOST PART ASSUMING THAT THE PRESIDENT'S PACKAGE WILL BE PASSED AND THEY ARE ALTERING THEIR VISIONS OF THEIR CORPORATE PROSPECTS ACCORDINGLY FOCUSING ON MAJOR SEGMENTS OF US INDUSTRY WALL STREET JOURNAL REPORTERS AROUND THE COUNTRY FOUND CONSIDERABLE APPROVAL OF THE PRESIDENT'S PACKAGE THIS WAS PARTICULARLY TRUE IN THE TECHNOLOGY INDUSTRY FOR EXAMPLE EDWARD MCCRACKEN CHIEF EXECUTIVE OF COMPUTER MAKER SILICON GRAPHICS INC SAYS NOBODY'S HAPPY ABOUT PAYING MORE TAXES BUT THE PRESIDENT'S PROGRAM IS SOMETHING WE CAN AND SHOULD GET BEHIND THE ENERGY INDUSTRY AS MIGHT BE EXPECTED IS LESS SUPPORTIVE CHARLES DIBONA PRESIDENT OF THE AMERICAN PETROLEUM INSTITUTE SAYS THE PRESIDENT'S ENERGY PROPOSAL REALLY AMOUNTS TO A THINLY DISGUISED GASOLINE TAX ONE THAT WOULD SERIOUSLY HARM ECONOMIC RECOVERY AND BE A JOB KILLER ON A MAMMOTH SCALE A SURVEY OF SELECTED INDUSTRIES FOLLOWS MANY MANUFACTURERS WEREN'T PLEASED BY KEY ELEMENTS OF THE PRESIDENT'S PLAN AND THERE IS WIDESPREAD FEAR THAT HIGHER TAXES COULD STALL THE RECOVERY BUT OPPOSITION WAS MUTED BY A FEELING THAT FOR MOST INDUSTRIES THE HIGHER TAXES WOULDN'T PINCH TOO HARD AND MANY MANUFACTURING LEADERS FELT THE PAIN MIGHT BE BALANCED BY THE BENEFITS OF REDUCING THE DEFICIT THE BIGGEST ISSUE FACING MANUFACTURERS IS THE ENERGY TAX THIS IS PARTICULARLY TRUE IN THE ALUMINUM BUSINESS WHERE ENERGY IS 30 TO 40 OF TOTAL COSTS THE SINGLE LARGEST EXPENSE BARRY MEYER VICE PRESIDENT OF GOVERNMENT RELATIONS FOR THE ALUMINUM ASSOCIATION FEARS THAT UTILITIES WILL PASS ALONG THE COST TO THE ALUMINUM PRODUCERS BUT THAT THE PRODUCERS WON'T BE ABLE TO PASS IT ALONG TO THEIR CUSTOMERS HE ALSO WORRIES THAT US ALUMINUM COMPANIES WILL LOSE GROUND TO FOREIGN PRODUCERS AND TO COMPETING MATERIALS THAT REQUIRE LESS ENERGY TO MAKE THE FOREIGN IMPACT IS SOFTER IN THE STEEL BUSINESS WHERE THERE IS MUCH LESS INTERNATIONAL COMPETITION BECAUSE TRADE CASES HAVE CLOSED THE US MARKET TO MANY FOREIGNERS MOREOVER F KENNETH IVERSON CHAIRMAN OF NUCOR CORP THE LARGEST STEEL MINIMILL OPERATOR IN THE US BELIEVES BOTH LARGE AND SMALL STEELMAKERS WILL BE ABLE TO PASS ALONG THE ENERGY COSTS TO CUSTOMERS YOU CAN'T EXPECT INTEGRATED STEEL TO TAKE MORE LOSSES JUST BECAUSE ENERGY PRICES ARE HIGHER HE SAYS WILLIAM C KILLGALLON CHAIRMAN OF OHIO ART CO IN BRYAN OHIO DOUBTS CLINTON'S PLAN WILL PASS THE TAX INCREASES WILL STICK BUT THE SPENDING REDUCTIONS WILL GO AWAY HE PREDICTS A BUSH SUPPORTER HE SAYS THAT THE MAJOR PROBLEM IS CONGRESS NOT THE US PRESIDENT AND UNTIL THEY REDUCE GOVERNMENT SPENDING NOTHING WILL BE SOLVED MR KILLGALLON SAYS OHIO ART A TOY MAKER WHOSE PRODUCTS INCLUDE THE ETCH A SKETCH PAD RECENTLY REDUCED ITS INTERNAL ESTIMATES OF 1993 REVENUE BY 10 BASED ON THE ECONOMIC OUTLOOK AND EARLY SPECULATION ABOUT PRESIDENT CLINTON'S PLAN THE TIMING OF THE PLAN TROUBLED OTHER MANUFACTURERS WHO SAID IT COULD SQUELCH THE RECOVERY YOU DON'T RAISE PRICES WHEN THE MARKET IS SOFT SAYS DONALD HASTINGS CHAIRMAN OF LINCOLN ELECTRIC CO IN EUCLID OHIO I'VE MADE THAT MISTAKE AND BELIEVE ME OUTPUT DOESN'T GO UP MORE OPTIMISTIC IS SAL H ALFIERO CHAIRMAN OF MARK IV INDUSTRIES INC IN AMHERST NY IF THEY RAKE IN THE REVENUE AND DON'T DO A DAMN THING ABOUT THE COSTS IT'S A DISASTER HE SAYS BUT HE SAYS I'M MORE THAN 50 CONFIDENT THEY'LL DO IT MR ALFIERO WHOSE COMPANY MAKES INDUSTRIAL EQUIPMENT FOR POWERTRANSFER TRANSPORTATION AND AUDIO APPLICATIONS SAYS THE CORPORATE TAX BOOST ISN'T ALL THAT MUCH AND IT COULD BE BALANCED BY THE ITCS AND LOWER INTEREST RATES IF THEY MANAGE TO CUT THE DEFICIT IN GENERAL HOWEVER THE TAX CREDITS ATTRACTED LITTLE COMMENT FROM MANUFACTURING CEOS WHO SAID THEY WEREN'T REVISING INVESTMENT OR PRODUCTION DECISIONS ONLY LINCOLN ELECTRIC EXPECTS MAJOR BENEFITS FROM INFRASTRUCTURE SPENDING SINCE ITS WELDING ELECTRODES ARE USED IN BRIDGES AND OTHER TRANSPORTATION PROJECTS AND EVEN AT LINCOLN SAYS MR HASTINGS THE GAIN IS BALANCED BY THE LOSS OF SALES DESTINED FOR NAVY SHIPBUILDING PROJECTS RETAILERS ARE WORRIED AS MUCH ABOUT THE PSYCHOLOGICAL IMPACT OF PRESIDENT CLINTON'S ECONOMIC PACKAGE ON CONSUMERS AS THEY ARE ABOUT ITS REALLIFE EFFECT FEARS ABOUT HIGHER TAXES COULD CHILL THE CONFIDENCE OF CONSUMERS WHO ONLY RECENTLY BEGAN RETURNING TO FREERSPENDING WAYS SOME RETAILERS SAY AT LEAST ONE MAJOR RETAILER SAYS THE NEW PLAN IS LIKELY TO SLOW ITS EXPANSION PLANS AT JC PENNEY CO WHICH IS COMING OFF A SUCCESSFUL SALES YEAR THE CLINTON ADMINISTRATION'S PROPOSALS WILL CAUSE US TO MODERATE SAYS IRA SILVER MANAGER OF PLANNING AND FORECASTING FOR THE PLANO TEXAS COMPANY WE'LL BE LESS AGGRESSIVE ON A LOT OF SEGMENTS SUCH AS CAPITAL INVESTMENT ADVERTISING AND EMPLOYMENT FURTHER THE CORPORATE TAX INCREASE COULD SHAVE 3 TO 5 OFF NET INCOMES FOR RETAILERS ESTIMATES MARGO MCGLADE AN ANALYST WITH PAINEWEBBER INC THAT'S BECAUSE IN TODAY'S COMPETITIVE RETAIL ENVIRONMENT RETAILERS WOULD BE FORCED TO ABSORB THE TAX RISES RATHER THAN PASS THEM ALONG TO CUSTOMERS BUT OTHER RETAILERS ARE STICKING WITH THEIR GROWTH PLANS THEY REASON THAT CONSUMERS WILL RESPOND POSITIVELY TO THE PRESIDENT'S PROGRAM BECAUSE IT COULD BRING LONGTERM ECONOMIC IMPROVEMENT RIGHT NOW WE'RE NOT CHANGING ANY OF OUR GROWTH PLANS SAYS ALAN RAXTER CHIEF FINANCIAL OFFICER FOR YOUNKERS INC A DES MOINES IOWA CHAIN OF 54 DEPARTMENT STORES THE CONSUMERS IN OUR MARKET ARE FAIRLY UPBEAT SIMPLY BECAUSE SOMETHING IS HAPPENING TO TRIM THE DEFICIT MR RAXTER ADDS THE PRESIDENT'S PLAN COULD HAVE A BIGGER IMPACT ON SOME RETAILERS CHIEFLY THOSE SELLING LUXURY PRODUCTS THAN ON THOSE SERVING MODERATEINCOME CUSTOMERS SAYS OWEN SHAPIRO A CHICAGOBASED CONSUMER RESEARCHER MOST OF THE PROPOSED TAX INCREASES HAVEN'T BEEN FOCUSED ON THE DISCOUNT SHOPPERS AS MUCH AS ON OTHER GROUPS SAYS A ROBERT STEVENSON PUBLIC AFFAIRS VICE PRESIDENT FOR KMART CORP THE NATION'S SECONDLARGEST RETAILER I DON'T THINK OUR CUSTOMERS WILL BE AFFECTED AS MUCH AS OTHERS STILL SUCH TALK ISN'T SENDING SHOCK WAVES THROUGH RETAILERS WHO SELL HIGHERPRICED ITEMS SHARPER IMAGE CORP KNOWN FOR ITS LINE OF UNUSUAL HIGHERPRICED ITEMS SAYS IT PLANS TO CONTINUE THE MOVE IT BEGAN LAST FALL TOWARD OFFERING EVEN HIGHERPRICED GOODS AUTO INDUSTRY ANALYSTS ON WALL STREET PREDICTED PRESIDENT CLINTON'S PROPOSALS WILL MEAN AT LEAST A 2 DROP IN THE NUMBER OF CARS SOLD THIS YEAR AND PRICES OF THE BIG THREE US AUTO MAKERS' STOCKS EASED YESTERDAY AS THE OVERALL MARKET DECLINED BUT IN DETROIT AND AT DEALERSHIPS ACROSS THE COUNTRY THERE WAS STILL SOME OPTIMISM THE HOPE IS THAT IF CLINTON SELLS HIS PLAN CONSUMERS WILL BE MORE CONFIDENT IN THE COUNTRY'S ECONOMIC FUTURE AND BUY MORE CARS ON WALL STREET ANALYSTS SAY ENERGY TAXES WILL MAKE CARS MORE EXPENSIVE TO BUY AND TO RUN AND BOTH ENERGY AND HIGHER INCOME TAXES WILL CUT DISPOSABLE INCOME CONSUMERS WILL BE POORER SO THEY WILL BUY FEWER OR SMALLER CARS SAYS MARYANN KELLER AN ANALYST WITH FURMAN SELZ HIGHER TAXES WILL CUT BY AT LEAST 2 THE NUMBER OF LIGHT VEHICLES SOLD IN 1992 SAYS JACK V KIRNAN AT SALOMON BROTHERS MS KELLER SAYS THAT FIGURE IS CONSERVATIVE THE MOST SEVERE IMPACT WILL BE ON LUXURY CARS ANALYSTS SAY AFFLUENT PEOPLE WON'T HAVE AS MUCH MONEY TO SPEND ON TOYS SAYS GEORGE PETERSON PRESIDENT OF AUTOPACIFIC INC A CALIFORNIABASED AUTOMOTIVE RESEARCH FIRM THIS ABSOLUTELY SAYS THAT CARS PRICED OVER 50000 ARE DEAD MS KELLER SAYS CALLING THE ENERGY TAX AND THE HIGHER INCOME TAX THE FINAL BLOW TO A SEGMENT OF THE MARKET ALREADY SUBJECT TO A LUXURY TAX AND A GASGUZZLER TAX BUT IN NEENAH WIS THE FUTURE OF THE MAINSTREAM AUTO MARKET LOOKS MUCH BRIGHTER SAYS JOHN F BERGSTROM A 46YEAROLD REPUBLICAN WHO MAINLY SELLS GENERAL MOTORS CORP PRODUCTS FROM SATURNS TO CADILLACS FORGET ABOUT THE ECONOMISTS RIGHT HERE PEOPLE ARE COMING IN AND BUYING CARS AND TRUCKS SAYS MR BERGSTROM SINCE CLINTON WAS ELECTED THERE'S BEEN A EUPHORIA THAT'S REALLY HELPED OUR BUSINESS MR BERGSTROM SAYS THAT MR CLINTON'S POLICIES SCARED THE HECK OUT OF ME BUT THAT HIS DELIVERY WAS CONFIDENT AND WILL SEND A REASSURING MESSAGE TO THE NATION THERE IS NOT AN INABILITY TO BUY CARS OUT THERE HE ADDS IT IS CONSUMER CONFIDENCE THAT IS KEY DONALD P HILTY CHRYSLER CORP'S CHIEF ECONOMIST COULDN'T AGREE MORE THE MOST IMPORTANT THING TO WATCH IS CONSUMER ATTITUDES MR HILTY SAYS CALLING ANY REDUCTIONS IN SALES FORECASTS FOR 1993 PREMATURE DISPOSABLE INCOME IS UP OVER LAST YEAR AND CONSUMER DEBT IS DOWN SO THE ABILITY TO BUY CARS AND TRUCKS IS IMPROVING DRAMATICALLY HE SAYS FOR THE FIRST TIME IN ITS RECENT HISTORY THE HIGHTECHNOLOGY INDUSTRY FEELS THAT A PRESIDENT IS PAYING ATTENTION TO IT AND EXECUTIVES ARE GIVING BROAD SUPPORT TO AN ECONOMIC PACKAGE THEY SAY COULD HAVE A BIG IMPACT ON THE WAY THEY DO BUSINESS THERE'S A LOT IN THE PLAN THAT TECHNOLOGY EXECUTIVES HAVE BEEN REQUESTING FOR YEARS ESPECIALLY PERMANENT RESEARCHANDDEVELOPMENT TAX CREDITS AND SUPPORT FOR CIVILIAN RESEARCH IN GOVERNMENT LABORATORIES THE TAX IMPACT ON OUR BUSINESS IS PROBABLY NEUTRAL SAYS MR MCCRACKEN OF SILICON GRAPHICS THE NEW TAXES ARE BALANCED BY THE R&D TAX CREDIT AND INVESTMENT TAX CREDIT WHAT'S MORE MR MCCRACKEN AND OTHER EXECUTIVES SAY THE PLAN'S TAX CREDITS AND ITS EMPHASIS ON HIGH TECHNOLOGY WILL SPUR PURCHASES OF COMPUTER EQUIPMENT SOFTWARE AND SEMICONDUCTORS JAMES MORGAN CHIEF EXECUTIVE OFFICER OF APPLIED MATERIALS INC WHICH MAKES THE MACHINERY THAT MANUFACTURES CHIPS SAYS HE EXPECTS THE NEW TAX CREDITS TO ALLOW APPLIED TO SPEND MORE ON RESEARCH AND TO ACCELERATE CAPITALSPENDING PLANS IF THE CLINTON PLAN BEGINS TO SPUR NEW INVESTMENT AMONG APPLIED'S CUSTOMERS THE PLAN'S TAXCREDIT PROVISIONS WOULD ALLOW APPLIED TO SPEED UP COMPLETION OF A FACILITY TO TEST AND DEMONSTRATE CHIPMAKING EQUIPMENT MR MORGAN SAYS APPLIED FINISHED HALF OF THE NEW FACILITY EARLY THIS YEAR BUT HADN'T EXPECTED TO FINISH THE SECOND HALFWHICH COULD COST 20 MILLIONUNTIL AS LATE AS 1995 NOW HE SAYS THE COMPANY MAY ACCELERATE THE PLAN BY A YEAR OR MORE CREATING NEW JOBS AND IMPROVING APPLIED'S ABILITY TO COMPETE WITH RIVALS IN JAPAN AND ELSEWHERE SILICON VALLEY'S SUPPORT FOR MR CLINTON IS CONDITIONAL THE ECONOMY MUST CONTINUE TO IMPROVE THE ECONOMY IS A LOT MORE IMPORTANT THAN THE TAX RATE SAYS JAMES TREYBIG CHIEF EXECUTIVE OF TANDEM COMPUTERS INC HE EXPECTS THE NEW TAXES CUTTING THE DEDUCTION ON BUSINESS LUNCHES FOR EXAMPLE WILL INCREASE TANDEM'S EXPENSES BY 500000 A YEARTO BE MORE THAN OFFSET BY PURCHASES OF TANDEM COMPUTERS BY COMPANIES MAKING CAPITAL INVESTMENTS MR TREYBIG ALSO EXPECTS TO BE ABLE TO INCREASE THE 15 OF REVENUE TANDEM NOW SPENDS ON RESEARCH BECAUSE THE PROPOSED PERMANENT TAX CREDIT WILL ALLOW IT TO PLAN BETTER THERE ARE SKEPTICS LEWIS PLATT CHIEF EXECUTIVE OF HEWLETTPACKARD CO SAYS THE IMPACT ON HP OF THE PLAN'S TAX INCREASES PARTICULARLY THOSE THAT APPLY TO INCOME EARNED OVERSEAS BY US CORPORATIONS IS LIKELY TO BE VERY SUBSTANTIAL IN TERMS OF ADDITIONAL COSTS OVER HALF OF HP'S REVENUES COME FROM INTERNATIONAL SALES HE SAYS AND ANYTHING THAT UNDERMINES OUR ABILITY TO COMPETE EFFECTIVELY OVERSEAS CONCERNS US TJ RODGERS CHIEF EXECUTIVE OF CYPRESS SEMICONDUCTOR CORP AND A FREQUENT CRITIC OF GOVERNMENT SUPPORT OF INDUSTRY CONCEDES THAT THE INVESTMENT AND RESEARCH TAX CREDITS ARE STEPS IN THE RIGHT DIRECTION BUT THE OVERALL PLAN HE SAYS MERELY SHIFTS THE RECIPIENTS OF GOVERNMENT HANDOUTS WE'RE INTO A NEW ERA OF HIGHTECH PORK BARREL STILL WHAT'S MOST STRIKING IS HOW MUCH OF SILICON VALLEY FEELS A SENSE OF OWNERSHIP ABOUT THE CLINTON PLAN VICE PRESIDENT ALBERT GORE AND COMMERCE SECRETARY RON BROWN PUT IN LONG CONFERENCE CALLS ON TUESDAY TO SILICON VALLEY LEADERS AND SIGNIFICANT FEATURES OF THE PLAN WERE INSPIRED BY PREELECTION MEETINGS BETWEEN MR CLINTON AND TECHNOLOGY EXECUTIVES LIKE APPLE COMPUTER INC'S CHIEF EXECUTIVE JOHN SCULLY ALTHOUGH MANY ENERGY INDUSTRY EXECUTIVES ARE DISMAYED OVER PRESIDENT CLINTON'S PROPOSAL TO IMPOSE A NEW ENERGY TAX THEY SAY THE SUCCESS OR FAILURE OF HIS BROADER EFFORTS TO SPUR ECONOMIC GROWTH WOULD HAVE A GREATER IMPACT ON THEIR INDUSTRIES THE REAL QUESTION FACING THE US ENERGY INDUSTRY IS HOW WELL OUR ECONOMY DOES SAYS DANIEL YERGIN PRESIDENT OF CAMBRIDGE ENERGY RESEARCH ASSOCIATES THE SPECIFIC PROPOSAL ON ENERGY HE ADDS ISN'T A HUGE TAX AND ISN'T MAKE OR BREAK FOR THE COMPANIES THAT PRODUCE OIL NATURAL GAS AND COAL TED ECK CHIEF ECONOMIST AT AMOCO CORP IN CHICAGO SAYS I WORRY ABOUT THE TOTAL IMPACT ON THE ECONOMY OF BOTH THE ENERGY TAX AND ON THE PRESIDENT'S WIDE ARRAY OF OTHER PROPOSALS THE DEGREE OF PAIN WE EXPERIENCE IN PART IS BASED ON WHAT IMPACT IT WILL HAVE ON OUR CUSTOMERS MR ECK SAYS HE IS WORRIED THAT AMOCO ONE OF THE NATION'S LARGEST REFINERS AND SELLERS OF GASOLINE COULD HAVE TROUBLE PASSING ALONG ANY INCREASE IN ENERGY TAXES BECAUSE MARKET CONDITIONS ARE WEAK IN ADDITION HE SAYS OIL REFINERS WOULD IN A WAY BE TAXED TWICE FOR ENERGY ONCE FOR THE CRUDE OIL THAT IS PROCESSED INTO GASOLINE AND OTHER PETROLEUM PRODUCTS AND AGAIN FOR THE ENERGY USED TO POWER THE REFINERY'S MANUFACTURING PROCESS THE ENERGY TAX IS UNLOADING AN INORDINATE AMOUNT OF THE BURDEN ON THE ENERGYPRODUCING INDUSTRIES AND THE ENERGYINTENSIVE INDUSTRIES SAYS KENNETH LAY CHAIRMAN OF ENRON CORP HOUSTON THE NATION'S BIGGEST INTEGRATED NATURALGAS COMPANY WE'D LIKE TO SEE THIS SPREAD MORE EVENLY ACROSS THE ECONOMY MR LAY SAYS THE PROPOSAL TO RAISE THE TOP CORPORATE TAX RATE TO 36 FROM 34 COULD REDUCE ENRON'S CASH FLOW SOMEWHAT AND ULTIMATELY CURB ITS CAPITAL SPENDING IT SEEMS TO BE CONTRARY TO WHAT THE PRESIDENT WANTS TO DO HE ADDS IT'S HARD TO SEE ANYTHING IN THE PACKAGE THAT WILL STIMULATE PRODUCTIVITY INVESTMENT OR JOB CREATION RAYMOND PLANK CHAIRMAN OF APACHE CORP A LARGE HOUSTONBASED OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAYS APACHE DOESN'T MIND PAYING A HIGHER TAX RATE AS LONG AS HIS COMPETITORS MUST ALSO DAMN IT WE HAVE TO REMEMBER THAT SOMEWHERE ALONG THE LINE WE ARE AMERICANS FIRST HE SAYS MR PLANK WOULD HAVE PREFERRED AN OILIMPORT FEE TO THE BTU TAX HE SAYS BECAUSE IN ADDITION TO RAISING REVENUE IT WOULD HELP SPUR JOB GROWTH IN THE SHRINKING US OIL INDUSTRY MANY REALESTATE INDUSTRY EXECUTIVES ARE REACTING ENTHUSIASTICALLY TO PRESIDENT CLINTON'S ECONOMIC PLAN SAYING HIS EMPHASIS ON DEFICITREDUCTION WILL KEEP INTEREST RATES LOW AND THAT HIS PUSH FOR MORE INFRASTRUCTURE WILL GENERATE MUCHNEEDED NEW COMMERCIAL BUSINESS FRANKLY I WAS EBULLIENT FOR MY INDUSTRY SAID LEONARD MILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LENNAR CORP A HOMEBUILDER BASED IN MIAMI SOME INDUSTRY EXECUTIVES HOWEVER WERE CHAGRINED AT THE PLAN SAYING THE PROPOSED INCREASES IN SPENDING ON CERTAIN GOVERNMENT PROGRAMS COMBINED WITH RISING BUSINESS COSTS UNDER CORPORATE TAX CHANGES COULD BOOST INFLATION AND INTEREST RATES I AM HYSTERICALLY NEGATIVE WITH THE PROGRAM SAID ANGELO R MOZILO PRESIDENT AND CHIEF EXECUTIVE OF COUNTRYWIDE FUNDING CORP PASADENA CALIF THE SPEECH ALLAYED SOME INDUSTRY CONCERNS ON THE HOUSING SIDE MANY EXECUTIVES HAD FEARED THAT THE PRESIDENT WOULD PROPOSE ELIMINATING THE DEDUCTION FOR MORTGAGES OF MORE THAN 300000 CRIMPING THE UPPER END OF THE MARKET ALTHOUGH CONGRESS MIGHT STILL PUSH FOR THAT THE FACT THAT THE PRESIDENT DIDN'T MENTION IT CAME AS GREAT RELIEF AMONG BUILDERS THE INDUSTRY WAS ALSO ELATED THAT THE PRESIDENT URGED FEDERAL REGULATORS TO EASE SOME OF THEIR RESTRICTIVE EXAMINATIONS ON BANKS AMELIORATING A CREDIT CRUNCH THAT HAS PREVENTED MANY BUILDERS FROM GETTING CONSTRUCTION LOANS THE PAST TWO YEARS ALTHOUGH HE DIDN'T MENTION IT IN HIS SPEECH THE PRESIDENT'S ECONOMIC PLAN ALSO INCLUDES SOME HOUSING STIMULUS MEASURES INCLUDING MORTGAGE REVENUE BONDS AND AN EXTENSION OF TAX CREDITS FOR LOWINCOME HOUSING THE LOWINCOME TAX CREDITS ARE CONSIDERED VITAL TO THE STILLBATTERED APARTMENT INDUSTRY HAVING CONTRIBUTED HEAVILY TO MULTIFAMILY HOUSING STARTS LAST YEAR JOHN TUCCILLO CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS SAID THE PRESIDENT'S PROPOSED SHORTTERM STIMULUS PACKAGE WOULD CREATE MORE JOBS AND ADD TO DEMAND FOR HOUSING MR TUCCILLO SAID HOME SALES WILL ALSO BENEFIT FROM THE CONTINUED CLIMATE FOR LOW INTEREST RATES COMMERCIAL DEVELOPERS MEANWHILE SEE A BOOST FOR THEIR DEPRESSED INDUSTRY IN THE PRESIDENT'S CALL FOR 30 BILLION IN INFRASTRUCTURE IMPROVEMENTS FOR THE TRAVEL INDUSTRY THE PRESIDENT'S PROPOSALS ADD UP TO A MIXED BAG OF BLESSINGS AND BURDENS MAJOR AIRLINES WILL GAIN FROM THE PROPOSED INVESTMENT TAX CREDITS FOR THE PURCHASE OF NEW EQUIPMENT BY THE END OF THE DECADE A HUGE PERCENTAGE OF AIRCRAFT MUST BE REPLACED TO MEET FEDERALLY MANDATED NOISE REQUIREMENTS BUT SOME INDUSTRY OFFICIALS CONTEND THAT IT'S STILL TOO EARLY TO TELL WHAT IMPACT OTHER INITIATIVES MIGHT HAVE I MUST EXAMINE CAREFULLY THE FINANCIAL IMPLICATIONS OF THE PRESIDENT'S PROPOSALS PARTICULARLY AS THEY PERTAIN TO FUEL SURCHARGES AND CORPORATE TAX CHANGES CAUTIONS STEPHEN M WOLF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNITED AIRLINE'S PARENT UAL CORP EARLY ESTIMATES ARE THAT THE PLANNED INCREASE IN ENERGY TAXES WILL ULTIMATELY RAISE AIRLINE TICKETS BY NO MORE THAN 2 INDUSTRY EXPERTS SAY BUSINESS TRAVEL COULD BE HURT BY THE PRESIDENT'S PLAN TO CUT THE TAX CREDIT FOR BUSINESS MEALS AND ENTERTAINMENT CURRENTLY FOOD AND BEVERAGES ACCOUNT FOR ABOUT 15 TO 20 OF ALL TRAVEL COSTS ACCORDING TO JOHN HINTZ PRESIDENT OF THE NATIONAL BUSINESS TRAVEL ASSOCIATION A TRADE GROUP FOR CORPORATE TRAVEL MANAGERS MANY DOMESTIC AIRLINES WHICH COLLECTIVELY HAVE LOST MORE THAN 8 BILLION IN THE PAST THREE YEARS AND ARE SEEKING SOLUTIONS TO THEIR FINANCIAL PLIGHT FROM UNCLE SAM MAY NOT HAVE TO WORRY ANYTIME SOON ABOUT THE PRESIDENT'S PLAN TO RAISE THE TOP CORPORATE TAX RATE TO 36 FROM 34 WE HOPE WE DO HAVE THAT PROBLEM SAYS A SPOKESMAN AT DELTA AIR LINES THE NATION'S THIRDLARGEST AIRLINE AND A MONEYLOSER LAST YEAR AIRLINE LABOR UNIONS ARE OPTIMISTIC ABOUT THE PRESIDENT'S PLAN BUT STILL THEY ARE CALLING ON THE GOVERNMENT TO TAKE A MORE ACTIVE ROLE IN HELPING THE INDUSTRY INTERNATIONAL BROTHERHOOD OF TEAMSTERS PRESIDENT RON CAREY SAYS THE GOVERNMENT MUST PUT AN END TO DEREGULATION THAT HAS COST THE JOBS OF HUNDREDS OF THOUSANDS OF WORKERS IN THE TRANSPORTATION INDUSTRY AND GEORGE KOURPIAS PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS SAYS HE IS ENCOURAGED BY THE PRESIDENT'S EFFORTS AND ECONOMIC PROPOSALS BUT WE'VE GOT TO LOOK AT THIS PACKAGE IN ITS TOTALITY 9302190112 930219 CLINTON'S ECONOMIC PACKAGE PLAN TO LIFT TOP TAX RATE WILL RESURRECT TAX SHELTERS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PLAN TO BOOST INCOME TAX RATES FOR THE WEALTHY AND HOLD THE CAPITAL GAINS RATE STEADY PROMISES TO RESURRECT SOME OF THE TAX SHELTERS THAT CONGRESS KILLED OFF IN THE 1980S THE PROPOSAL TO INCREASE THE TOP TAX RATE ON PERSONAL INCOME TO 396 FROM THE CURRENT 31 ENHANCES THE VALUE OF ANY TAXFAVORED INCOME BUT MR CLINTON'S DECISION TO LEAVE THE TOP RATE ON CAPITAL GAINS AT 28 OPENS A SIGNIFICANT DIFFERENTIAL BETWEEN TAXES PAID ON INCOME FROM THE SALE OF ASSETS HELD FOR AT LEAST A YEAR AND ON ORDINARY INCOME THIS DIFFERENTIAL PLUS OTHER TAX BREAKS MR CLINTON PROPOSED TO STIR UP NEW INVESTMENT FOR SMALL BUSINESS AND LOWINCOME HOUSING ALREADY HAS SPAWNED TALK OF NEW INVESTMENT VEHICLES WALL STREET MIGHT CONCOCT THE HIGHER THE RATE ON ORDINARY INCOME GOES THE GREATER THE INCENTIVE TO AVOID FULL TAXATION THROUGH A CAPITAL GAINS BREAK SAYS SEN BILL BRADLEY D NJ THAT MEANS MORE JOBS FOR TAX ACCOUNTANTS IN 1986 SEN BRADLEY A MEMBER OF THE SENATE FINANCE COMMITTEE SPEARHEADED THE DRIVE TO SIMPLIFY THE TAX CODE BY LOWERING TAX RATES BUT GETTING RID OF A PANOPLY OF DEDUCTIONS AND CREDITS THE 1986 TAX LAW ALSO RAISED THE RATE ON CAPITAL GAINS AS A RESULT CONGRESS LARGELY SUCCEEDED IN WIPING OUT MOST TAX SHELTERS WHICH OFTEN ATTRACTED INVESTMENT ON THE PROMISE OF REDUCED TAXES RATHER THAN ECONOMIC WORTH IF CONGRESS ADOPTS THE CLINTON PACKAGE WE ARE GOING TO HAVE NEWFANGLED SHELTERS PREDICTS NEW JERSEY TAX ATTORNEY MARTIN SHENKMAN THERE'S AN INCENTIVE NOW TO DO WHAT THE 1986 ACT WAS TRYING TO ELIMINATE TO PLAN TRANSACTIONS FOR TAX BENEFITS SPONSORS OF PARTNERSHIPS DESIGNED AROUND TAX BREAKS ALREADY SEE GOLD IN THE CLINTON PLAN I THINK THERE IS ALREADY A HEIGHTENED SENSITIVITY TO TAX LIABILITIES AND AN INCREASED DESIRE TO EXPLORE ALTERNATIVES SUCH AS LIMITEDPARTNERSHIP INVESTMENTS SAYS STEPHEN H HAMRICK A SENIOR VICE PRESIDENT OF PAINEWEBBER INC MR HAMRICK EXPECTS PAINEWEBBER'S SALES OF LOWINCOME HOUSING PARTNERSHIPS TO DOUBLE IF THE CLINTON PACKAGE IS ENACTED MUCH OF THE RETURN THAT INVESTORS RECEIVE FROM THOSE PARTNERSHIPS IS IN THE FORM OF A TAX CREDIT THAT PRESIDENT CLINTON IS SEEKING TO EXTEND BOTH INDIVIDUAL AND CORPORATE INVESTORS HAVE BEEN BUYING THOSE PARTNERSHIPS AND BOTH GROUPS NOW FACE HIGHER TAXES PARTNERSHIP SPONSORS ALSO ARE STUDYING A PROPOSED CUT IN THE CAPITAL GAINS TAX ON LONGTERM INVESTMENTS IN SMALL BUSINESS DEPENDING ON THE DETAILS THAT COULD POTENTIALLY BE VERY EXCITING SAYS CHRISTOPHER L DAVIS PRESIDENT OF THE INVESTMENT PROGRAM ASSOCIATION A GROUP OF PARTNERSHIP SPONSORS AND SELLERS IN EFFECT THAT PROPOSAL MIGHT ADD NEW TAX SIZZLE TO THE VENTURE CAPITAL PARTNERSHIPS THAT ARE CURRENTLY OFFERED BY A FEW SPONSORS DETAILS OF THIS ASPECT OF THE CLINTON PLAN AREN'T AVAILABLE YET BUT AS PART OF HIS PLAN TO SUPPORT SMALL BUSINESSES AND GENERATE NEW JOBS MR CLINTON PROPOSED A SPECIAL TAX BREAK FOR INVESTORS WHO BUY STOCK IN BUSINESSES WITH CAPITALIZATION OF 25 MILLION OR LESS ADMINISTRATION OFFICIALS HAVE SAID THAT INVESTORS WHO HOLD THEIR STOCK FOR AT LEAST FIVE YEARS WILL BE ABLE TO EXCLUDE 50 OF THEIR GAIN FROM TAXATION THE BALANCE WILL PRESUMABLY BE TAXED AT THE CAPITAL GAINS RATE OF 28 MEANING THAT LONGTERM INVESTORS IN SMALL COMPANIES WOULD PAY AN EFFECTIVE RATE OF 14 POINTS OUT HENRY AARON OF THE BROOKINGS INSTITUTION MR AARON WORRIES THAT THE CLINTON PROPOSAL MAY BE JUST THE BEGINNING OF AN EFFORT TO LARD THE TAX CODE WITH THE TYPE OF BREAKS THE 1986 ACT ELIMINATED CONGRESS IS MORE THAN LIKELY TO EXPAND THE CONCESSIONARY TREATMENT OF CAPITAL GAINS HE SAID HAVING PROPOSED A SIZABLE DIFFERENTIAL IN THE TAXATION OF CAPITAL GAINS AND ORDINARY INCOME THE ADMINISTRATION IS POORLY POSITIONED TO RESIST PRESSURE FROM SPECIAL INTEREST GROUPS FOR MORE TAX BREAKS HE SAYS IT'S A LITTLE AMUSING TO SEE CLINTON SAY THAT HE WANTS TO GET RID OF THE GAME PLAYING AND THEN SEE THIS SAYS ROBERT MCINTYRE THE DIRECTOR FOR CITIZENS FOR TAX JUSTICE A UNION SUPPORTED GROUP IT LOOKS LIKE IT WAS WRITTEN BY LLOYD BENTSEN AND A BUNCH OF INVESTMENT BANKERS HE SAYS NOTING THAT TREASURY SECRETARY BENTSEN A FORMER CHAIRMAN OF THE SENATE FINANCE COMMITTEE HAS IN THE PAST FAVORED LOWER CAPITAL GAINS RATES HOWEVER TAX SHELTERS THAT MIGHT FLOW OUT OF THE CLINTON PACKAGE GENERALLY WON'T BE AS PLENTIFUL OR AS LUCRATIVE AS THE ONES THAT PROLIFERATED IN THE EARLY 1980S BACK THEN TAX LAWS OFFERED THREE ADVANTAGES FIRST INVESTORS COULD WRITE OFF THEIR INVESTMENT EXPENSES AGAINST ORDINARY INCOME BY USING GENEROUS DEPRECIATION POLICIES SECOND THEY COULD DEDUCT INTEREST ON MONEY BORROWED TO MAKE THE INVESTMENT AND FINALLY ANY RESULTING PROFITS WOULD BE TAXED AT A LOWER CAPITAL GAINS RATE A SERIES OF TAX LAWS PASSED IN THE MID1980S SHARPLY LIMITED THE OPPORTUNITIES FOR SUCH SHELTERS NEW PASSIVE LOSS RULES CURBED THE ABILITY TO WRITE OFF INVESTMENT EXPENSES AND DEPRECIATION AGAINST ORDINARY INCOME AND THE ELIMINATION OF THE LARGE DIFFERENTIAL BETWEEN TAX RATES ON CAPITAL GAINS AND ORDINARY INCOME FURTHER LESSENED THE INCENTIVE TO PURSUE INVESTMENTS PRIMARILY TO REDUCE TAX BURDENS MR CLINTON'S PROPOSAL TO MAKE TAX RATES MORE PROGRESSIVE BY BOOSTING TAXES ON THE RICH WOULD RESTORE THE CAPITAL GAINS DIFFERENTIAL I DON'T THINK THERE'S ANY QUESTION THAT THE INCREASE IN RATES BOTH AT THE INDIVIDUAL AND CORPORATE LEVEL IS A REVERSAL OF THE PHILOSOPHY OF THE 1986 BILL OF TRYING TO TAX ALL INCOME AS UNIFORMLY AS POSSIBLE SAYS RONALD PEARLMAN A PARTNER IN THE WASHINGTON LAW FIRM OF COVINGTON & BURLING BUT THE PASSIVE LOSS RULES WOULD GENERALLY REMAIN IN EFFECT ALTHOUGH THE CLINTON PLAN DOES PROPOSE A LIMITED RELAXATION FOR PERSONS IN CERTAIN REAL ESTATE TRADES OR BUSINESSES ALTHOUGH DETAILS AREN'T PUBLIC YET THE LIBERALIZED RULE APPEARS TO LIMIT THE INVESTMENT WRITEOFF OPPORTUNITIES THAT WERE BROADLY AVAILABLE IN THE EARLY 1980S TO PEOPLE WHO EARN THEIR LIVING THROUGH REAL ESTATE THE PASSIVE LOSS RULES MAKE IT A LITTLE MORE DIFFICULT TO BENEFIT FROM TAX SHELTERS BUT I'M SURE THEY'LL BE ABLE TO DO IT MR MCINTYRE SAYS OF COURSE MANY ANALYSTS BELIEVE A PREFERENTIAL CAPITAL GAINS RATE IS AN IMPORTANT SPUR TO INVESTMENT ITS INCLUSION IN THE CLINTON PLAN WILL HELP GENERATE SUPPORT FROM MANY BUSINESS GROUPS THE DIFFERENTIAL GROWS OUT OF MR CLINTON'S PROPOSAL TO LEAVE THE CAPITAL GAINS RATE AT 28 WHILE BOOSTING THE TOP TAX RATE TO 36 FROM 31 FOR COUPLES FILING JOINT RETURNS WITH TAXABLE INCOME OF 140000 OR ADJUSTED GROSS INCOME THE FIGURE AT THE BOTTOM OF THE FIRST PAGE OF THE TAX RETURN OF 180000 IN ADDITION MR CLINTON PROPOSED A 10 SURTAX ON REGULAR TAXABLE INCOME OVER 250000 WHICH BOOSTS THE TOP RATE FOR THE WEALTHIEST TAXPAYERS TO 396 THE SURTAX WOULDN'T APPLY TO CAPITAL GAINS 9302190111 930219 ANHEUSER PLAN FOR THEME PARK IN SPAIN STALLS PARTNER IS BEING SOUGHT TO REPLACE INVESTOR WHO HELD 80 STAKE BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID THE FUTURE OF A COSTLY NORTHERN SPAIN THEME PARK CONCEIVED BY ANHEUSERBUSCH COS MAY BE IN JEOPARDY UNLESS THE US BREWERY FINDS A NEW PARTNER TO REPLACE THE PROJECT'S MAJORITY SHAREHOLDER SPANISH BANKS AND PUBLIC LENDING INSTITUTIONS HAVE GROWN LEERY OF THE PROJECT SINCE A FINANCIAL SCANDAL INVOLVING THE BIG STAKEHOLDER CATALAN FINANCIER JAVIER DE LA ROSA SURFACED LATE LAST YEAR SOURCES FAMILIAR WITH THE PROJECT SAY UNLESS ANHEUSERBUSCH EITHER FINDS A NEW PARTNER OR INCREASES ITS OWN STAKE THE SOURCES SAY THE PLANNED PARK FACES A TOUGH TIME RAISING NECESSARY FINANCING ANHEUSER WHICH CURRENTLY OPERATES SEA WORLD CYPRESS GARDENS AND OTHER US THEME PARKS ORIGINALLY ENVISIONED A PARK DEVELOPMENT COSTING ABOUT 300 MILLION WITH A POSSIBLE SECOND PHASE THAT WOULD HAVE NEARLY DOUBLED TOTAL EXPENDITURES THE PLAN WAS WARMLY RECEIVED BY THE GOVERNMENT OF CATALAN WHICH HAD ACTIVELY SOUGHT TO ATTRACT A THEME PARK OPERATOR TO THE REGION AFTER FRANCE WAS CHOSEN AS THE SITE OF DISNEYLAND EUROPE ANHEUSERBUSCH'S PROJECT STALLED HOWEVER OVER DIFFICULTIES WITH MUNICIPAL OFFICIALS AND THE US COMPANY HALTED ITS INVESTMENT TO SEEK AN EQUITY PARTNER EVENTUALLY MR DE LA ROSA'S GRAND TIBIDABO COMPANY STEPPED IN TO TAKE AN 80 STAKE IN THE VENTURE AND ANHEUSERBUSCH CONTRIBUTED 73 MILLION FOR LAND ENGINEERING AND DESIGN WORK IN EXCHANGE FOR THE REMAINING 20 HOLDING IN WHAT IS KNOWN AS GRAND PENINSULA PAST CREDIT PROBLEMS OF MR DE LA ROSA AND THOSE OF THE KUWAIT INVESTMENT OFFICE KIO HE USED TO HEAD IN SPAIN HAVE APPARENTLY STYMIED EFFORTS TO RAISE PUBLIC FINANCING FOR THE PROJECT THUS FAR SUCH CONCERNS LAY BEHIND THE INSTITUTO DE CREDITO OFICIAL'S RECENT CANCELLATION OF A 15 BILLION PESETAS 128325000 CREDIT IT GRANTED ANHEUSERBUSCH IN 1988 WHEN THE COMPANY WAS THE PARK'S MAJOR HOLDER FROZEN BANK GUARANTEE ANOTHER REASON THE GOVERNMENT LENDING AGENCY WITHDREW THE LOAN AN ICO SPOKESWOMAN SAYS WAS BECAUSE THE REGIONAL GOVERNMENT OF CATALONIA RECENTLY FROZE A BANK GUARANTEE FOR THE PROJECT IN ST LOUIS ANHEUSERBUSCH SAID IT IS AWARE THAT THE MAJORITY PARTNER OF THE JOINT VENTURE GRAND TIBIDABO IS CURRENTLY HOLDING DISCUSSIONS WITH SEVERAL COMPANIES THAT ARE INTERESTED IN INVESTING IN THE PROJECT WE DON'T BELIEVE IT IS APPROPRIATE FOR US TO COMMENT ON THESE ONGOING NEGOTIATIONS CONSTRUCTION BEGAN IN APRIL ON THE FIRST STAGE OF THE PARK WHICH IS EXPECTED TO COST ABOUT 48 BILLION PESETAS TO COMPLETE A MONTH LATER MR DE LA ROSA'S PROBLEMS SURFACED THAT'S WHEN THE 43YEAROLD FINANCIER WAS RELIEVED OF HIS POST AS DEPUTY CHAIRMAN OF GRUPO TORRAS THE KIO'S SPANISH HOLDING COMPANY IN JULY THE GROUP'S CHEMICAL UNIT SUSPENDED PAYMENTS IN THE FIRST OF WHAT WAS TO BECOME A STRING OF CORPORATE FAILURES THAT KUWAITIS BLAMED ON MR DE LA ROSA AND OTHER EXECUTIVES AT GRUPO TORRAS IN DECEMBER GRUPO TORRAS FILED FOR PROTECTION FROM CREDITORS LEAVING ARGENTARIA CORP BANCARIA DE ESPANA THE STATEOWNED BANKING GROUP LINKED TO THE ICO WITH A 30 BILLION PESETAS DEBT DEEPLY EMBARASSED THE CATALONIAN REGIONAL GOVERNMENT IS CIRCUMSPECT ABOUT ITS PLANS FOR THE PARK'S FUTURE SOME SAY THE GOVERNMENT IS ACTIVELY SEEKING A PARTNER TO REPLACE THE FINANCIER WITH LITTLE SUCCESS THUS FAR SEVERAL ELECTRICAL UTILITIES HAVE BEEN ENCOURAGED TO HELP SAVE THE PROJECT WHICH ENTAILS A TOTAL INVESTMENT OF 100 BILLION PESETAS AND SOME 3000 NEW JOBS BUT OFFICIALS SAY THERE'S LITTLE CHANCE OF THOSE DEBTLADEN COMPANIES' TAKING PART MOREOVER MANY PRIVATE BANKS HAVE EXPRESSED CONCERN ABOUT DISNEY'S DISAPPOINTING RESULTS WITH ITS PARK NEAR PARIS EVEN SO SPANISH ANALYSTS AND GOVERNMENT OFFICIALS PRAISE THE PARK CALLED TIBIGARDENS SAYING IT HAS GREATER CHANCE FOR SUCCESS THAN DISNEY'S PROJECT GIVEN ITS LOWER COSTS AND CHOSEN THEMES AS WELL AS THE SITE'S MILD CATALONIAN WEATHER MEANWHILE WORK IS PROCEEDING ON SCHEDULE ACCORDING TO MR DE LA ROSA AND SPOKESMEN FOR GRAND TIBIDABO AND GRAND PENINSULA CONTRACTS FOR CONSTRUCTION WORK HAVE BEEN AWARDED AND 142 BILLION PESETAS HAVE BEEN INVESTED SINCE THE CORNERSTONE OF THE PARK WAS LAID IN APRIL GRAND TIBIDABO HAS ENOUGH MONEY TO MEET ITS OBLIGATIONS THIS YEAR A SPOKESWOMAN SAYS ADDING THAT TALKS ARE UNDERWAY WITH SEVERAL COMPANIES THAT SHE DECLINED TO IDENTIFY THE MONEY ISN'T NEEDED UNTIL NEXT YEAR SHE SAYS REFERRING TO THE STATE CREDITS JAVIER DE LA ROSA HAS ALWAYS SAID THEY'D BE LOOKING FOR NEW SHAREHOLDERS THAT'S NOTHING NEW BUT BANKERS SAY THERE IS LITTLE LIKELIHOOD OF TIBIGARDENS' RECEIVING FRESH FINANCING UNTIL DOUBTS SURROUNDING MR DE LA ROSA'S FINANCIAL PAST ARE CLEARED JAMES P MILLER IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9302190110 930219 PACIFICORP TRIMS DIVIDEND SETS PACT TO SELL NERCO UNIT POSTS QUARTERLY LOSS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL PACIFICORP SLASHED ITS DIVIDEND BY 30 AND ANNOUNCED AN AGREEMENT TO SELL ITS TROUBLED NERCO INC NATURAL RESOURCES SUBSIDIARY IT ALSO POSTED A 2988 MILLION FOURTHQUARTER LOSS SWOLLEN BY ONETIME CHARGES THAT CUT ACROSS ITS DIVERSE OPERATIONS THE QUARTERLY DIVIDEND WAS CUT TO 27 CENTS A SHARE FROM 385 CENTS REFLECTING PACIFICORP'S SHARPLY REDUCED ASSET SIZE AND EARNINGS POTENTIAL AFTER THE NERCO SALE THE DIVIDEND WILL BE PAID MAY 15 TO COMMON STOCK OF RECORD APRIL 23 KENNECOTT CORP ONE OF THE NATION'S LARGEST COPPER PRODUCERS AGREED TO PURCHASE NERCO FOR 12 A SHARE OR ABOUT 470 MILLION PACIFICORP SAID KENNECOTT A UNIT OF RTZ CORP OF BRITAIN IS ALSO ASSUMING NEARLY 700 MILLION OF NERCO LIABILITIES PACIFICORP OF PORTLAND ORE OWNS ABOUT 82 OF NERCO'S SHARES MAKING THE VALUE OF ITS HOLDINGS ABOUT 385 MILLION IF THE SALE GOES THROUGH THE REMAINDER OF NERCO'S SHARES ARE TRADED ON THE NEW YORK STOCK EXCHANGE IN COMPOSITE TRADING YESTERDAY THE SHARES ROSE 125 TO 1150 PACIFICORP SHARES SANK 1875 TO 17125 ALSO ON THE BIG BOARD ALTHOUGH PACIFICORP HAD SAID LAST YEAR THAT IT WAS LOOKING FOR BUYERS FOR NERCO'S PRECIOUSMETALS MINING OPERATIONS THE DECISION TO SELL THE WHOLE SUBSIDIARY SURPRISED ANALYSTS PACIFICORP REFUSED TO MAKE THE KIND OF CAPITAL INFUSION NEEDED TO SHORE UP THE AILING UNIT THEY SAID THROUGHOUT THE 1980S WHEN MOST OF THE UTILITIES SEEMED TO GO THROUGH ONE FAILURE AFTER ANOTHER IN THEIR DIVERSIFICATION EFFORTS THIS ONE WAS HELD OUT AS A SUCCESS STORY SAID BARRY ABRAMSON AN ANALYST AT PRUDENTIAL SECURITIES INC BUT IN RECENT YEARS NERCO TOOK ON HUGE DEBT TO EXPAND ITS NATURAL GAS OPERATIONS WHEN PRICES PLUMMETED THE OPERATIONS CREATED LOSSES THAT HAVE HIT HOME IN A BIG WAY PACIFICORP'S ELECTRIC UTILITY OPERATIONS AND ITS TELEPHONE UTILITY AND FINANCIAL SERVICES BUSINESSES HAVE SUFFERED PROBLEMS TOO AM GLEASON PRESIDENT AND CHIEF EXECUTIVE OFFICER CALLED 1992 THE MOST DIFFICULT YEAR WE HAVE EXPERIENCED WITH EACH OF OUR BUSINESSES REPORTING LOWER OPERATING RESULTS THAN A YEAR AGO THE LOSS IN THE QUARTER EQUAL TO 115 A SHARE INCLUDED A 3195 MILLION LOSS FROM DISCONTINUED OPERATIONS LARGELY REFLECTING THE PLANNED NERCO DIVESTITURE RESULTS WERE FURTHER REDUCED BY 58 MILLION OF CHARGES RELATED TO THE ELECTRIC UTILITY ADDITIONS TO LOANLOSS RESERVES IN THE FINANCIAL SERVICES UNIT AND PROVISIONS FOR SURPLUS AND OBSOLETE INVENTORY AMONG OTHER THINGS IN THE YEAREARLIER QUARTER PACIFICORP POSTED NET INCOME OF 1646 MILLION OR 60 CENTS A SHARE REVENUE IN THE LATEST QUARTER ROSE NEARLY 2 TO 8677 MILLION FROM 8527 MILLION KENNECOTT APPARENTLY WAS ATTRACTED TO NERCO'S COAL PROPERTIES AND PROBABLY WILL SELL OFF ITS OTHER OPERATIONS NERCO'S OIL AND GAS PRODUCTION WILL BE OFFERED FOR SALE BY MORGAN STANLEY & CO KENNECOTT SAID THE COMPANY SAID IT WILL EVALUATE THE BIDS NERCO HAD RECEIVED FOR ITS PRECIOUSMETALS MINES TO DETERMINE IF IT WANTS TO MAKE THE SALES NERCO IS A LOWCOST PRODUCER OF HIGHQUALITY COAL SAID VICTOR LAZAROVICI AN ANALYST AT SG WARBURG & CO MAKING IT A LOGICAL FIT FOR RTZ THEY WILL BUY ANYTHING IN THE LOWEST QUARTILE OF THE COST CURVE IN THE MINING INDUSTRY HE SAID THEY ARE OPPORTUNISTIC BUYERS RTZ CURRENTLY HAS NO DIRECT INVESTMENT IN COAL OPERATIONS KENNECOTT OWNED PEABODY COAL FROM 1968 TO 1977 PACIFICORP PLANS TO LEND KENNECOTT 225 MILLION TO FINANCE THE NERCO TRANSACTION THE LOAN IS PAYABLE FROM THE PROCEEDS OF ONE OF OUR LARGE COAL CONTRACTS AND REPRESENTS A SHARING OF THE RISK ON THAT CONTRACT MR GLEASON SAID THE INTEREST RATE IS RELATIVELY ATTRACTIVE HE ADDED BUT DECLINED TO BE SPECIFIC MR GLEASON STOUTLY DISAGREED WITH SOME ANALYSTS' CHARACTERIZATION OF NERCO AS A FAILED INVESTMENT SAYING IT HAD GENERATED AN 18 INTERNAL RATE OF RETURN SINCE 1977 PACIFICORP SAID THE SALE WHICH IT EXPECTS TO COMPLETE BEFORE MIDYEAR WILL RESULT IN A PRETAX GAIN OF ABOUT 154 MILLION OVER THE LIFE OF THE FINANCING AGREEMENT WHICH COULD EXTEND THROUGH 2009 THE SALE IS SUBJECT TO VARIOUS REGULATORY AND OTHER APPROVALS THE EXECUTIVE WAS CAUTIOUSLY OPTIMISTIC ABOUT PROSPECTS FOR 1993 RECENT HEAVY RAINS HAVE IMPROVED THE OUTLOOK FOR HYDROELECTRIC OPERATIONS AND COLD WEATHER HAS INCREASED DEMAND FOR ELECTRICITY THE PERFORMANCE OF THE COMPANY'S OTHER SUBSIDIARIES IMPROVED IN JANUARY AND MR GLEASON STRESSED THAT WE DIDN'T LEAVE ANY QUESTIONABLE ASSETS ON THE BOOKS ANYWHERE WHICH IS A POSITIVE FOR THE FUTURE FOR ALL OF 1992 NERCO POSTED A LOSS OF 3404 MILLION OR 142 A SHARE AFTER 213 MILLION IN CHARGES IN 1991 PACIFICORP HAD NET INCOME OF 5072 MILLION OR 186 A SHARE REVENUE LAST YEAR GREW 2 TO 324 BILLION FROM 317 BILLION MARJ CHARLIER CONTRIBUTED TO THIS ARTICLE 9302190109 930219 WHO'S NEWS COCACOLA NAMES TWO SENIOR OFFICERS TO TAKE OVER THE DUTIES OF PRESIDENT BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO SAID ITS LONGTIME PRESIDENT DONALD R KEOUGH WILL RETIRE IN APRIL THE COMPANY PROMOTED TWO SENIOR OFFICERS TO ASSUME HIS DUTIES CREATING AN APPARENT SUCCESSION HORSE RACE M DOUGLAS IVESTER 45 YEARS OLD AND JOHN HUNTER 55 WERE NAMED TO THE NEW POSITIONS OF EXECUTIVE VICE PRESIDENT THE COMPANY SAID THAT FOR NOW IT WON'T NAME A SUCCESSOR TO MR KEOUGH'S POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER SEPARATELY COKE INCREASED ITS QUARTERLY DIVIDEND TO 17 CENTS FROM 14 CENTS PAYABLE APRIL 1 TO SHAREHOLDERS OF RECORD MARCH 15 SINCE JULY 1991 MR IVESTER HAS BEEN PRESIDENT OF COKE'S NORTH AMERICAN OPERATION INCLUDING THE HIGHPROFILE COKE USA DIVISION HE NOW WILL ALSO OVERSEE THE CRITICAL AREA OF MARKETING AS WELL AS THE COMPANY'S JUICE BUSINESS BOTH VIEWED AS BROADENING HIS EXPERIENCE FOR A RUN AT THE CHIEF EXECUTIVE'S JOB HE WAS ALSO GIVEN A LOFTIER TITLE PRINCIPAL OPERATING OFFICERNORTH AMERICA RESPONSIBLE FOR THE US AND CANADIAN DIVISIONS ALSO SINCE JULY 1991 MR HUNTER HAS BEEN PRESIDENT OF COKE'S INTERNATIONAL DIVISION WHICH CONTRIBUTES ABOUT 80 OF THE COMPANY'S PROFIT ALTHOUGH HIS DUTIES WON'T CHANGE HE NOW ASSUMES THE ADDITIONAL TITLE OF PRINCIPAL OPERATING OFFICERINTERNATIONAL THE APPOINTMENTS SIGNALED A TIGHTER RACE BETWEEN MR HUNTER AND MR IVESTER WHO IS STILL BELIEVED INTERNALLY TO BE THE FRONT RUNNER IF IVESTER HAD HAD A SLAM DUNK I DON'T THINK THE PRESIDENT'S JOB WOULD HAVE BEEN SPLIT UP THIS WAY SAYS A FORMER COKE MANAGER AT 61 ROBERTO C GOIZUETA CHAIRMAN AND CHIEF EXECUTIVE STILL HAS FOUR YEARS TO FIND A SUCCESSOR AND HE SUGGESTED THAT HE WILL HAVE A CLOSER EYE ON OPERATIONS NOW THAT MR KEOUGH IS RETIRING NOT HAVING A PRESIDENT ELIMINATES ONE LAYER AND PUTS THE CEO ONE LAYER CLOSER THAN WAS THE CASE BEFORE HE SAID IN AN INTERVIEW IN HIS OFFICE YESTERDAY MR GOIZUETA SAID HE HAS ABSOLUTELY NO IDEA IF THE PRESIDENT'S ROLE WILL BE FILLED HE SAYS THE POSITION IS NOT AS NECESSARY AS IT ONCE WAS WHEN THE COMPANY WAS MORE DIVERSIFIED HE ACKNOWLEDGED THAT THE STRUCTURE WOULD LEAD TO SPECULATION OF A CONTEST FOR THE SUCCESSION SOME PEOPLE MAY THINK HE SAID GOIZUETA'S PUT TWO FELLOWS TO COMPETE WITH EACH OTHER BUT HE SAID THE RESPONSIBILITIES OF EACH WERE SO VAST THAT THEY WOULDN'T BE RUNNING INTO EACH OTHER ASKED IF ONE CANDIDATE HAD GAINED THE INSIDE TRACK ON SUCCESSION HE RESPONDED I DON'T EVEN KNOW IF IT'S BETWEEN THE TWO MR KEOUGH'S DEPARTURE IS A BIG LOSS FOR COKE FOR YEARS AS THE COMPANY'S QUINTESSENTIAL SALESMAN HE HAS HANDLED TOPLEVEL NEGOTIATIONS WITH MAJOR CUSTOMERS LIKE MCDONALD'S CORP AND TOPLEVEL FOREIGN DIGNITARIES SMOOTHING THE WAY FOR COKE TO ENTER MARKETS ABROAD AT THE BOARD'S REQUEST MR KEOUGH HAD DELAYED HIS RETIREMENT WHICH HAD BEEN SCHEDULED FOR 1991 MR KEOUGH 66 IS ALSO RETIRING FROM THE COMPANY'S BOARD ALTHOUGH HE HAS AGREED TO SERVE AS AN ADVISER TO DIRECTORS WITH DUTIES DESIGNATED BY MR GOIZUETA MR KEOUGH WOULDN'T SAY WHETHER HE WILL REMAIN AS CHAIRMAN OF COCACOLA ENTERPRISES INC THE GIANT BOTTLER IN WHICH COKE OWNS A LARGE STAKE AS PART OF THE MANAGEMENT CHANGES TIMOTHY J HAAS VICE PRESIDENT OF THE COMPANY AND PRESIDENT OF COCACOLA FOODS AND PETER SEALEY SENIOR VICE PRESIDENT OF THE COMPANY AND DIRECTOR GLOBAL MARKETING WILL REPORT TO MR IVESTER MR HUNTER AND MR IVESTER WILL REPORT TO MR GOIZUETA 9302190108 930219 ECONOMY ACCOUNTING FIRMS INVESTORS CRITICIZE PROPOSAL ON EXECUTIVES' STOCK OPTIONS BY CHRISTI HARLAN AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL IN JOINT LETTERS TO THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS THE SIX LARGEST ACCOUNTING FIRMS JOINED INVESTOR AND CORPORATE GROUPS IN CRITICIZING A PROPOSED RULE THAT WOULD REQUIRE COMPANIES TO DEDUCT THE VALUE OF EXECUTIVES' STOCK OPTIONS FROM EARNINGS INSTEAD IN THEIR COMMENTS TO THE FINANCIAL ACCOUNTING STANDARDS BOARD THE INVESTOR AND CORPORATE GROUPS SUGGESTED BROAD DISCLOSURE OF STOCK OPTIONS' VALUE WITHIN THE TEXT OF CORPORATE FINANCIAL REPORTS DENNIS BERESFORD CHAIRMAN OF THE FASB SAID THE GROUPS' PROPOSAL WILL HAVE TO BE TAKEN SERIOUSLY BECAUSE IT COMES FROM FINANCIALREPORT PREPARERS USERS AND THE ACCOUNTING FIRMS THERE'S A POSSIBILITY THAT OUR PROJECT COULD FOCUS ON DISCLOSURES RATHER THAN ACCOUNTING MR BERESFORD SAID BUT HE QUICKLY ADDED THAT THE DECISION IS UP TO THE FULL SEVENMEMBER BOARD OF WHICH I AM ONLY ONE MEMBER THE FASB IS SCHEDULED TO MEET TODAY IN NORWALK CONN AND HEAR TESTIMONY ABOUT THE PROPOSED RULE THE LETTERS FROM THE UNUSUAL COALITION ALSO REFLECT A COMPROMISE BETWEEN INVESTORS AND THE CORPORATE REPRESENTATIVES NEITHER GROUP HAS WANTED TO SEE THE VALUE OF OPTIONS DEDUCTED FROM EARNINGS BUT THEY HADN'T BEEN ABLE TO AGREE ON HOW TO VALUE THE OPTIONS IN THE TEXT OF EARNINGS REPORTS INSTITUTIONAL INVESTORS WHO HAVE PRESSED FOR MORE DISCLOSURE OF STOCK OPTIONS HAD SUGGESTED VALUING OPTIONS UNDER A COMPLEX FORMULA THAT INCORPORATES STOCKPRICE VOLATILITY AMONG OTHER THINGS THE CORPORATIONS SUGGESTED VALUING THE OPTIONS BASED ON A 5 INCREASE IN STOCK PRICE A METHOD THAT INSTITUTIONAL INVESTORS SAID WOULD BE TOO LOW THE COMPROMISE INCORPORATES BOTH VALUATION APPROACHES PLUS A VALUATION OF OPTIONS BASED ON A 10 INCREASE IN STOCK PRICES ALL SHOWN IN AN EASYTOREAD CHART ACCORDING TO SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS AND THE PERSON WHO IS SPEARHEADING THE PLAN MR BERESFORD SAID THE GROUPS' PROPOSAL SUGGESTS DISCLOSURE FAR BEYOND WHAT THE SECURITIES AND EXCHANGE COMMISSION AND THE FASB HAVE RECOMMENDED THE FASB CHAIRMAN SAID THE BACKING OF THE PROPOSAL BY THE TOP SIX ACCOUNTING FIRMS WILL CARRY MORE WEIGHT WITH THE FASB THAN THE COMMENT OF A SINGLE COMPANY OR ORGANIZATION WE'VE GOTTEN A LOT OF CRITICISM SO IN CONVERSATIONS WITH THE VARIOUS PARTIES WHO MADE THIS PROPOSAL I'VE ASKED FOR SUGGESTIONS ON WHAT WE COULD DO RATHER THAN TELLING US WHAT WE SHOULDN'T DO HE ADDED THIS NEW PROPOSAL IS A MORE POSITIVE STEP IN THAT DIRECTION MR BERESFORD NOTED THAT PROPOSAL IS PART OF THE STRONG OPPOSITION ALREADY REGISTERED WITH THE FASB ON THE STOCKOPTIONS PROPOSAL WE'VE ALREADY GOTTEN 400 LETTERS HE SAID AND THE VAST MAJORITY OF THEM FEEL WE SHOULD DISCONTINUE WORK ON THE PROJECT SEPARATELY SEC CHAIRMAN RICHARD BREEDEN GAVE TEPID SUPPORT TO LEGISLATION THAT WOULD REQUIRE AUDITORS TO INFORM MANAGEMENT CORPORATE DIRECTORS AND THE SEC OF ANY FRAUD THEY DETECT DURING AUDITS MR BREEDEN TESTIFIED YESTERDAY BEFORE A HOUSE SUBCOMMITTEE THAT CURRENT RULES ALREADY REQUIRE SUCH WHISTLEBLOWING BY AUDITORS 9302190107 930219 INTERNATIONAL WORLD ECONOMY US DUTIES ON KOREAN SEMICONDUCTORS RAISE DOUBLEEDGED SWORD TO DUMPING BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THIS IS A TERRIBLE SHOCK TO THE KOREANS LAMENTS MAE IL A LEADING BUSINESS DAILY IN SEOUL THE PAPER WONDERS IF THE US HAS LAUNCHED A KOREABASHING CAMPAIGN IT HASN'T BUT WASHINGTON DID LEVY PUNITIVE TARIFFS AGAINST SOUTH KOREAN SEMICONDUCTORS JUST AS BUSINESS WAS GETTING GOOD IT CONTENDS THEY WERE BEING DUMPED OR SOLD BELOW HOMEMARKET PRICES TO GRAB MARKET SHARE IN THE AMERICAN MARKET RISKING GREAT HARM TO US RIVALS SO IT ORDERED EXTRA DUTIES TO BRING KOREAN PRICES UP TO WHAT IT SAYS ARE REASONABLE RATES LEVELING THE PLAYING FIELD FOR ALL CONCERNED AN OPEN AND SHUT CASE IT WOULD SEEM BUT NOT QUITE AS IN SO MANY DUMPING CASES IT'S NOT ALWAYS OBVIOUS WHERE TRUTH AND FAIRNESS REALLY LIE AND WHETHER PROTECTION IS JUSTIFIED COMPLEX ECONOMIC AND POLITICAL CROSSCURRENTS ARE AT WORK AND THEY CAN BE CONFUSING AND CONTRADICTORY TO LIST A FEW WHAT BRINGS WELCOME RELIEF TO ONE GROUP OF US COMPANIES CAN BE A HEADACHE FOR OTHERS PROTECTING ONE SET OF MANUFACTURING JOBS MIGHT ENDANGER ANOTHER WHILE ALSO JACKING UP CERTAIN CONSUMER PRICES KNOCKING OFF PREDATORY COMPETITION FROM ONE FOREIGN PRODUCER MAY GIVE AN EVEN TOUGHER RIVAL MARKET DOMINATION AND THE WHOLE THING CAN BRING ON TESTY POLITICAL SQUABBLES ABOUT PROTECTIONISM AT HOME AND ABROAD BUT NOT NECESSARILY A POLICY THAT REALLY GUARDS THE NATIONAL INTEREST THE STANDARD US USE OF ANTIDUMPING LAWS SUFFERS FROM SERIOUS SHORTCOMINGS ESPECIALLY WHERE HIGHTECHNOLOGY INDUSTRIES ARE INVOLVED WROTE ECONOMIST LAURA TYSON NOT LONG BEFORE BEING NAMED PRESIDENT CLINTON'S SENIOR ECONOMIC ADVISER THE KOREAN SEMICONDUCTOR ISSUE NOW AWAITING LEGAL RESOLUTION ILLUSTRATES THE PROBLEM THE CHIPS IN QUESTION ARE CALLED DYNAMIC RANDOM ACCESS MEMORIES OR DRAMS A BASIC COMPONENT OF MOST COMPUTER EQUIPMENT THE WORLD'S ELECTRONICS INDUSTRY GOBBLES THEM UP THE US BOUGHT 800 MILLION OF KOREAN CHIPS LAST YEAR THE CASE OF THE KOREAN DRAMS STARTS AT MICRON TECHNOLOGY INC OF BOISE IDAHO ONE OF THE FEW COMPANIES TO MAKE THEM IN THIS COUNTRY MICRON OFFICIALS SAW NEW KOREAN COMPETITORS SNARE 28 OF THE US MARKET AND THREATEN TO TAKE MORE SO LAST APRIL MICRON ASKED THE COMMERCE DEPARTMENT TO RULE THAT KOREAN MAKERS WERE SELLING AT LESS THAN FAIR VALUE UNDER US TRADE LAWS AND TO SLAP THEM WITH PUNITIVE DUTIES COMMERCE APPLIED INTERIM TARIFFS OF UP TO 87 PENDING FINAL SETTLEMENT THIS COMING APRIL IF HISTORY IS A GUIDE AT LEAST SOME OF THOSE PENALTIES WILL STICK THE DUTIES WILL ENSURE THE LONGEVITY OF A BUSINESS CRITICAL TO THE HEALTH OF THE AMERICAN ELECTRONICS INDUSTRY SAYS A MICRON VICE PRESIDENT AND WILL PROTECT 4000 JOBS BUT THAT DOESN'T SIT WELL AT AST RESEARCH INC OF IRVINE CALIF IT USES LOTS OF KOREAN AND OTHER DRAMS TO MAKE COMPUTERS AND LIKES LOWCOST PARTS DRAMS ARE BASICALLY INTERCHANGEABLE AND HAVING TO KEEP TRACK OF WHICH CHIPS COME FROM WHERE GIVES THE COMPANY EXTRA NONPRODUCTIVE OVERHEAD COSTS COMPLAINS AN AST OFFICIAL BUT THERE'S MORE AT STAKE AST IS PARTICULARLY UPSET BECAUSE MICRON ALSO GOT EXTRA DUTIES APPLIED TO IMPORTED SUBASSEMBLIES THAT USE KOREAN CHIPS THAT SAYS AST COULD FORCE IT TO SHIP MORE MANUFACTURING OVERSEAS TO HOLD DOWN COMPUTER PRICES ENDANGERING 700 US PRODUCTION JOBS THE COMPANY HAS WARNED THE COMMERCE DEPARTMENT AND IT'S A CONCERN SHARED BY MANY DRAM USERS US MANUFACTURING SHOULDN'T BE UNFAIRLY PENALIZED THE OFFICIAL SAYS MEANTIME THE SOUTH KOREANS WORRY ABOUT THEIR FASTGROWING CHIP INDUSTRY THEY SAY OVERALL TRADE WITH THE US IS ROUGHLY IN BALANCE WITH HIGHTECH COMMERCE SHOWING AN ANNUAL AMERICAN SURPLUS OF 400 MILLION THUS WASHINGTON SHOULD COMPARE ECONOMIC INTERESTS AND KEEP KOREAN CHIPS IN THE AMERICAN MARKET SAYS AMBASSADOR HONG CHOO HYUN WE SHOULDN'T BE TREATED LIKE JAPAN AND CHINA WHICH RUN UP HUGE TRADE SURPLUSES WITH THE US BUT THE JAPANESE MAY BE THE BIG WINNERS THEY ALREADY HAVE 53 OF THE US DRAM MARKET AND ARE LIKELY TO KEEP THAT LEAD AND THEIR PROFITS COULD RISE IF PUNITIVE TARIFFS DRIVE UP DRAM PRICES GENERALLY AS HAPPENED A DECADE AGO WHEN THE US ADOPTED PARTICULARLY MISGUIDED POLICIES TO PROTECT AMERICAN COMPANIES HOW MUCH THE US REALLY NEEDS COMPANIES LIKE MICRON IS CONTROVERSIAL SUPPORTERS SAY IT'S CRUCIAL TO RETAIN AT LEAST SOME MAKERS OF THIS VITAL BUILDING BLOCK OF THE ELECTRONICS INDUSTRY OTHERS SAY THE US SHOULD HELP USERS OF MOREADVANCED TECHNOLOGY AND SIMPLY BUY DRAMS WHEREVER PRICES ARE LOW THE TRUTH IS HARD TO FIND BUT STRONG VIEWS ARE EVERYWHERE DO WE NEED MICRON NO INSISTS A FORMER GOVERNMENT OFFICIAL WHO SAYS DUMPING LAWS ABOVE ALL LEAD TO TOO MUCH PROTECTION BUT THEN HE IS ALSO A TRADE LAWYER WITH OTHER CLIENTS 9302190106 930219 INTERNATIONAL SONY TRANSFERS US ELECTRONICS CHIEF TO EUROPE TO BOOST HARDWARE BUSINESS BY LAURA LANDRO AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AFTER THREE YEARS AT THE HELM OF SONY CORP'S 5 BILLIONPLUS US CONSUMER ELECTRONICS BUSINESS SONY CORP OF AMERICA PRESIDENT RON SOMMER IS BEING TRANSFERRED TO EUROPE TO RUN SONY'S TROUBLED HARDWARE OPERATIONS THERE MR SOMMER'S MOVE MAY BE THE FIRST STEP IN A BROADER RESTRUCTURING AIMED AT BRINGING THE COMPANY'S VAST US ELECTRONICS AND ENTERTAINMENT OPERATIONS NOW RUN AS COMPLETELY SEPARATE ENTITIES UNDER ONE CORPORATE UMBRELLA SONY HAS SPENT MORE THAN 6 BILLION ON US ENTERTAINMENT PURCHASES IN THE LAST FIVE YEARS INCLUDING THE FORMER CBS RECORDS AND COLUMBIA PICTURES ENTERTAINMENT INC OFFICIALS AT SONY CHARACTERIZED MR SOMMER'S RELOCATION AS A STRATEGIC MOVE TO SHORE UP THE BUSINESS IN EUROPE WHERE WORSENING ECONOMIC CONDITIONS CONTRIBUTED TO A 72 PLUNGE IN SONY'S NET A 62 DROP IN PRETAX PROFIT FOR THE THIRD QUARTER ENDED IN DECEMBER ONE COMPANY OFFICIAL SAID THE 43YEAROLD MR SOMMER WHO PREVIOUSLY RAN SONY'S GERMAN OPERATIONS WAS NEEDED BACK THERE SONY HASN'T YET FOUND A REPLACEMENT FOR MR SOMMER IN THE US WHERE HE ALSO WAS CHIEF OPERATING OFFICER OF SONY CORP OF AMERICA AND IT ISN'T CLEAR IF THERE ARE ANY INTERNAL CANDIDATES SONY IS EXPECTED TO FILL THE POST WITH AN AMERICAN EXECUTIVE AS PART OF A POLICY TO HAVE UNITS OUTSIDE JAPAN RUN BY LOCAL EXECUTIVES WHERE POSSIBLE SONY DECLINED TO COMMENT THE ENTERTAINMENT OPERATIONS AND OTHER SOCALLED SOFTWARE BUSINESSES SUCH AS ELECTRONIC PUBLISHING REPORT TO AN AMERICAN EXECUTIVE MICHAEL P SCHULHOF WHO JOINED THE COMPANY IN 1974 MR SCHULHOF 50 IS VICE CHAIRMAN OF SONY USA SONY'S US CORPORATE PARENT PRESIDENT OF SONY SOFTWARE WHICH INCLUDES THE ENTERTAINMENT AND ELECTRONIC PUBLISHING BUSINESSES AND CHAIRMAN OF SONY MUSIC ENTERTAINMENT THE RECORD COMPANY THOUGH HE DOESN'T OVERSEE THE ELECTRONICS BUSINESS AT PRESENT MR SCHULHOF IS REGARDED AS THE LOGICAL CANDIDATE TO EVENTUALLY OVERSEE ALL OF SONY'S US OPERATIONS HE IS THE ONLY NONJAPANESE EXECUTIVE ON SONY'S TOKYO BOARD OF DIRECTORS AND IS CLOSE TO SONY'S CHIEF EXECUTIVE NORIO OHGA MR SCHULHOF HAS THE IDEAL BACKGROUND TO CROSS THE BOUNDARIES BETWEEN HARDWARE AND ENTERTAINMENT BEFORE SPEARHEADING SONY'S SEARCH FOR ENTERTAINMENT OPERATIONS IN THE US HE SPENT A DECADE IN SONY'S ELECTRONICS OPERATIONS HELPING TO LEAD THE INTRODUCTION OF DIGITAL AUDIO TECHNOLOGY IN THE US AND OVERSEEING THE DEVELOPMENT INTRODUCTION AND MARKETING OF COMPACT DISKS HERE WHILE MR SOMMER IS RESPECTED IN THE CONSUMER ELECTRONICS FIELD HIS DEPARTURE FROM THE US REMOVES A THORNY EXECUTIVE WHO SOME COLLEAGUES SAY HAS OFTEN BEEN RESISTANT TO COOPERATION BETWEEN SONY'S ENTERTAINMENT AND HARDWARE OPERATIONS ALTHOUGH MR SOMMER HAS MADE EFFORTS TO BE MORE COOPERATIVE RECENTLY EXECUTIVES FROM THE ENTERTAINMENT OPERATIONS HAVE COMPLAINED THAT HE HAS BEEN BRUSQUE AND UNCOMMUNICATIVE ALIENATING HOLLYWOOD COLLEAGUES AT VARIOUS MEETINGS SONY ELECTRONICS EXECUTIVES ACKNOWLEDGE THAT THERE HAS BEEN SOME RESENTMENT IN THE PAST OVER THE RICH SUMS SONY HAS LAVISHED ON ITS ENTERTAINMENT OPERATIONS ALTHOUGH THEY MAINTAIN MOST OF THOSE PROBLEMS HAVE BEEN RESOLVED MR SOMMER WAS SAID TO BE OVERSEAS AND COULDN'T BE REACHED FOR COMMENT MR SCHULHOF DECLINED TO COMMENT MR SOMMER JOINED SONY IN 1980 AND BECAME PRESIDENT OF SONY GERMANY IN 1986 BEFORE BEING NAMED TO THE US POST DESPITE A WORLDWIDE SLUMP IN THE SALES OF CONSUMER ELECTRONICS THE US OPERATIONS OF SONY FARED WELL ACCORDING TO A COMPANY SPOKESMAN THROUGHOUT MR SOMMER'S TENURE AS PRESIDENT OF SONY CORP OF AMERICA SALES GREW AT A DOUBLE DIGIT PERCENTAGE RATE ANNUALLY AND PROFIT GROWTH WAS SUSTAINED HE SAID ALSO DURING MR SOMMER'S TENURE SONY INTRODUCED SEVERAL ELECTRONIC GIZMOS IN THE US THAT MAKE USE OF NEW MULTIMEDIA TECHNOLOGY AND OPTICAL DISK TECHNOLOGY THOUGH THEIR COMMERCIAL SUCCESS REMAINS TO BE SEEN LATE LAST YEAR SONY INTRODUCED ITS MINIDISC DIGITAL RECORDING SYSTEM THE WORLD'S FIRST RECORDABLE COMPACT DISK SYSTEM FOR THE GENERAL LISTENER MINIDISC WHICH USES A 25INCH CD IS CHALLENGING A TAPEBASED DIGITAL RECORDING SYSTEM FROM PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO MR SOMMER ASSUMES THE NEWLY CREATED POST OF PRESIDENT AND CHIEF OPERATING OFFICER OF SONY EUROPE APRIL 1 BASED IN COLOGNE GERMANY HE WILL REPORT TO JACK SCHMUCKLI CHAIRMAN AND CHIEF EXECUTIVE OF SONY EUROPE MR SOMMER'S TERRITORY WILL INCLUDE THE UK GERMANY FRANCE AUSTRIA NETHERLANDS SWITZERLAND BELGIUM DENMARK ITALY AND SPAIN UNTIL A SUCCESSOR IS NAMED HIS POST IN THE US WILL BE FILLED BY KEN IWAKI A DEPUTY PRESIDENT OF SONY CORP WORLDWIDE AND EXECUTIVE VICE CHAIRMAN OF SONY USA AS WELL AS CHAIRMAN AND CHIEF EXECUTIVE OF SONY CORP OF AMERICA 9302190105 930219 PLAYSKOOL CRIBS RECALLED WASHINGTON AP PLAYSKOOL TRAVELLITE CRIBS THAT WERE BLAMED FOR THREE INFANT SUFFOCATIONS ARE BEING RECALLED BY THE MANUFACTURER THE CONSUMER PRODUCT SAFETY COMMISSION SAYS THE AGENCY SAID CONSUMERS SHOULD IMMEDIATELY STOP USING THE CRIBS WITH MODEL NUMBERS 77101 AND 77103 AND CALL THE MANUFACTURER AT 18004537673 TO ARRANGE FOR THEM TO BE PICKED UP KOLCRAFT ENTERPRISES INC OF CHICAGO WHICH MANUFACTURES THE CRIBS FOR THE HASBRO INC UNIT IS VOLUNTARILY RECALLING 11638 CRIBS MADE BETWEEN 1990 AND 1992 THE AGENCY SAID KOLCRAFT WILL GIVE CONSUMERS A REFUND THE COMMISSION SAID THE CRIBS HAVE NYLON MESH SIDES THAT FOLD FOR STORAGE THE THREE INFANTS WHO DIED WERE FOUND TRAPPED IN MESH WHEN THE SIDES ACCIDENTALLY FOLDED WHILE THE CRIB WAS IN USE THE COMMISSION SAID 9302190104 930219 CORPORATE FOCUS HOUSING MARKET BOOM HELPS ELJER REVERSE ITS FORTUNE COMPANY REPLACES LOST CUSTOMERS AND PLUGS RED INK BUT PROBLEMS REMAIN BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL PLANO TEXAS IN JUST ONE YEAR ELJER INDUSTRIES INC HAS PULLED ITSELF BACK FROM THE BRINK OF BANKRUPTCY AND RESTORED PROFITABILITY EARLY IN 1992 ELJER INDUSTRIES FACED MOUNTING PRODUCTLIABILITY LITIGATION ENVIRONMENTALCLEANUP PROBLEMS AND A DECLINING CUSTOMER BASE MIRED IN DEBT AND RED INK THE PLUMBING PRODUCTS MAKER WAS FLIRTING WITH A BANKRUPTCYCOURT FILING NOW BUOYED BY THE SURGE IN HOUSING STARTS LATE LAST YEAR THE COMPANY HAS REPLACED THE LOST ACCOUNTS ADDED 90 MORE AND IMPROVED ITS GROSS PROFIT MARGIN IT EXPECTS TO REPORT NEXT MONTH THAT IT WAS PROFITABLE IN 1992 NINETY PERCENT OF THE PROBLEMS ARE BEHIND US SAYS SCOTT ARBUCKLE PRESIDENT AND CHIEF EXECUTIVE STILL ANALYSTS AND OTHERS SAY THE REMAINING 10 IS WORRISOME THE COMPANY'S REPUTATION AS A PRODUCT INNOVATOR AND AN AGGRESSIVE MARKETER HAS SUFFERED COSTING IT SOME KEY CUSTOMERS ITS BALANCE SHEET REMAINS HEAVY WITH DEBT AND A LINGERING LEGAL CLAIM COULD PUT ANOTHER 17 MILLION DENT IN EARNINGS MOST OF ELJER'S PROBLEMS ORIGINATED BEFORE IT WAS SPUN OFF FROM HOUSEHOLD INTERNATIONAL INC IN 1989 THE COMPANY WAS SADDLED WITH 136 MILLION IN DEBT AND A BUCKETFUL OF COSTLY ENVIRONMENTAL CLEANUPS FITTINGS ON THE QEST POLYBUTYLENE PLUMBING SYSTEM MADE BY ELJER'S US BRASS UNIT CORRODED CAUSING FLOODING IN CUSTOMERS' HOMES AND LEADING TO MORE THAN 30000 CLAIMS AGAINST THE UNIT FOR AN ESTIMATED 60 MILLION ELJER WON A COURT BATTLE LAST YEAR THAT FORCED ITS INSURERS TO COVER NEARLY ALL LOSSES FROM CLAIMS FOR QEST SYSTEMS INSTALLED BEFORE 1987 AS THE COMPANY'S LEGAL PROBLEMS MOUNTED CUSTOMERS GOT NERVOUS MR ARBUCKLE SAYS HUGHES SUPPLY INC AN ORLANDO FLA WHOLESALER SWITCHED TO AMERICAN STANDARD INC CITING PROBLEMS WITH ELJER'S PRODUCTS DELIVERY BILLING MARKETING AND SERVICING WE JUST GOT TO THE POINT WHERE IT WAS COSTING US MONEY TO DO BUSINESS SAYS J STEPHEN ZEPF HUGHES'S CHIEF FINANCIAL OFFICER ELJER OFFICIALS NOTE THAT WHILE HUGHES DROPPED ITS PLUMBING PRODUCTS IT CONTINUES TO CARRY ELJER'S HEATING VENTILATION AND AIR CONDITIONING PRODUCTS CONNOR CO A LONGTIME ELJER DISTRIBUTOR DEFECTED TO THE LARGER KOHLER CO CITING DISAPPOINTMENT WITH INADEQUATE INVENTORIES UNSATISFACTORY SERVICING AND A FEAR THAT ELJER WOULD GO BELLY UP JIM BULGER A CONNOR BRANCH MANAGER SAYS ELJER DIDN'T PROVIDE DELIVERIES AS REGULARLY AS HE WOULD HAVE LIKED JIM HARRIS ELJER'S VICE PRESIDENT OF SALES AND MARKETING CALLS THE CUSTOMER DEFECTIONS ANOMALIES HE CITES A RECENT CUSTOMER SURVEY THAT GAVE THE COMPANY HIGH MARKS THE TIDE SEEMED TO TURN IN AUGUST WHEN A FEDERAL APPEALS COURT RULED THAT LIBERTY MUTUAL INSURANCE CO WAS LIABLE FOR 15 MILLION OF PREVIOUSLY UNPAID CLAIMS AGAINST THE COMPANY OVERTURNING A TRIAL COURT'S RULING AND THE COMPANY WAS ABLE TO SHAVE ABOUT 1 MILLION OFF ANNUAL DEBT SERVICE BY RESTRUCTURING ITS 1148 MILLION DEBT IN DECEMBER FURTHER A NEWLY LANDED ACCOUNT WITH THE 87STORE HOME BASE CHAIN IS EXPECTED TO YIELD AN ESTIMATED 15 MILLION IN SALES ANNUALLY AND A 5 MILLION SHIPMENT OF 21000 BATHTUBS TO CHINA WAS ONE OF ELJER'S LARGEST EVER THE MOMENTUM IS REALLY PICKING UP MR ARBUCKLE SAYS THE COMPANY IS EXPANDING ITS MARKETING EFFORTS ESPECIALLY OVERSEAS MEXICO IS PARTICULARLY ATTRACTIVE MR HARRIS SAYS BECAUSE 80 OF ITS SALES THERE COME FROM HIGHERPRICED COLORED FIXTURES COMPARED WITH 25 OF US SALES ELJER FORMED A SEPARATE SALES FORCE TO GO AFTER THE REMODELING AND DOITYOURSELF MARKETS IN THE US WHICH ARE EXPECTED TO GROW AT A 7 ANNUAL CLIP MR HARRIS SAYS ELJER ALSO HAS INSTALLED A QUALITY MANAGEMENT PROGRAM TO BOOST PRODUCTIVITY AND SAFETY IMPROVEMENTS TO REDUCE WORKERS' COMPENSATION COSTS THE COMPANY STRIPPED 900 UNPROFITABLE OR SLOWMOVING PRODUCTS FROM ITS PRODUCT LINE NOW ELJER SAYS IT WILL SPEND MORE MONEY ON RESEARCH AND DEVELOPMENT WHILE ELJER HAS BEEN CRITICIZED FOR LAGGING IN PRODUCT INNOVATION COMPANY OFFICIALS INSIST THEY HAVEN'T SIMPLY BEEN GOING WITH THE FLOW POINTING TO NEW LINES OF ELECTRONIC AND CERAMIC CONTROL FAUCETS AND AN ADJUSTABLE GAS VENT FOR WHICH A PATENT APPLICATION IS PENDING TIM MCCORMACK AN ANALYST WITH MONEY MANAGER MARIO GABELLI'S GAMCO INVESTORS INC IS ESTIMATING THAT ELJER'S EARNINGS WILL MORE THAN DOUBLE IN 1993 TO ABOUT 105 A SHARE THAT CERTAINLY WOULD PLEASE HIS BOSS WHO HAS BEEN INCREASING HIS STAKE IN THE COMPANY NOW AT 14 IN AUGUST MR GABELLI PREDICTED AN EARNINGS SURGE THAT COULD TRIGGER INTEREST FROM A POTENTIAL SUITOR AND SAID HE WOULD SEEK TO BUY AS MUCH AS 20 OF ELJER MR MCCORMACK WOULDN'T COMMENT ON THE NEW YORK INVESTOR'S CURRENT PLANS BUT THE COMPANY ISN'T OUT OF THE WOODS YET ATTEMPTS TO GET HOUSEHOLD INTERNATIONAL TO SHARE ENVIRONMENTAL AND PRODUCTLIABILITY COSTS BROKE DOWN THIS MONTH WHETHER THE PROSPECT HEIGHTS ILL FINANCIAL SERVICES CONCERN HAS ANY LIABILITY WILL NOW LIKELY BE DECIDED IN COURT A FEDERAL COURT RULING IS ALSO EXPECTED SOON ON ELJER'S APPEAL OF A 17 MILLION ARBITRATION AWARD TO KOWIN DEVELOPMENT CORP A FORMER PARTNER IN A JOINT VENTURE IN CHINA ELJER CONTENDS THAT THE CALIFORNIA INVESTMENT FIRM'S CHARGES OF FRAUD AND MISREPRESENTATION ARE WITHOUT MERIT AND WHILE MR ARBUCKLE SAYS THE COMPANY IS RIGHT ON TARGET TO MEET THE GOALS SET IN AN AMBITIOUS THREEYEAR FINANCIAL AND OPERATING PLAN DEVISED IN 1991 THE COMPANY WILL HAVE TO HUSTLE TO GET THERE THE PLAN SET A GOAL OF A 15 RETURN ON EQUITY BUT ELJER'S RETURN IN 1991 WAS ZERO AND ITS 1992 RETURN WILL BE ABOUT 5 IF IT REPORTS EARNINGS OF 45 CENTS A SHARE AS MR MCCORMACK EXPECTS AFTER A 10 DECLINE IN SALES IN 1991 THE COMPANY IS STILL WELL BEHIND THE PLAN'S PROJECTED 3 CUMULATIVE ANNUAL SALES GROWTH AND ITS 56TO1 RATIO OF DEBT TO EQUITY REMAINS STUBBORNLY HIGH BROOKS SHERMAN ELJER'S ACTING CHIEF FINANCIAL OFFICER SAID THE COMPANY PLANS MORE DEBT RESTRUCTURING THIS YEAR AS FOR DIVIDENDS THE COMPANY'S NEW DEBT AGREEMENTS PREVENT THEM UNTIL 1995 THE COMPANY HASN'T PAID A DIVIDEND SINCE A SEVENCENT QUARTERLY PAYOUT WAS SUSPENDED IN FEBRUARY 1991 COMPANY OFFICIALS SAY THEIR RESULTS DEPEND SO STRONGLY ON HOUSING STARTS THAT THEY DIDN'T EXPECT TO ACHIEVE ALL THE GOALS UNTIL THIS YEAR WHEN THE IMPACT OF AN ECONOMIC RECOVERY WOULD BE FELT WHAT TENDS TO OBSCURE OUR PERFORMANCE IS LEGAL EXPENSE AND BANK NEGOTIATION MR ARBUCKLE SAYS OTHERWISE WE'RE RIGHT ON PLAN 9302190103 930219 LAW LEGAL BEAT MORE BUSINESSES USE OMBUDSMEN TO PREVENT WORKPLACE LITIGATION BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES ARE INCREASINGLY TURNING TO INFORMAL PROBLEMSOLVERS KNOWN AS OMBUDSMEN TO REDUCE TENSIONS AND DETER LITIGATION IN THE WORK FORCE USE OF OMBUDSMEN AT MEDIUMSIZED AND LARGE COMPANIES HAS MORE THAN DOUBLED IN THE PAST FIVE YEARS PARTLY IN RESPONSE TO A RISE IN LAWSUITS BY EMPLOYEES ALLEGING DISCRIMINATION WRONGFUL DISCHARGE OR SEXUAL HARASSMENT ABOUT 500 COMPANIES MOST WITH 500 OR MORE WORKERS NOW EMPLOY THE PROBLEMSOLVERS THE OMBUDSMEN MOST OF WHOM AREN'T LAWYERS LISTEN TO WORK COMPLAINTS RANGING FROM BENEFITS MIXUPS TO WORKPLACE VIOLENCE AND TRY TO HELP SOLVE PROBLEMS BEFORE THEY GET OUT OF HAND THEY'RE DIFFERENT FROM OTHER STAFFRELATIONS AND GRIEVANCE OFFICIALS BECAUSE THEY'RE NEUTRAL RATHER THAN REPRESENTATIVES OF MANAGEMENT ALSO THEIR CONVERSATIONS WITH EMPLOYEES AND ANY MEDIATION SESSIONS ARE CONFIDENTIAL UNLESS THE EMPLOYEES INVOLVED SAY OTHERWISE COMPANIES THAT WANT TO HIRE AN OMBUDSMAN CAN OFTEN FIND ONE RIGHT INSIDE THE FIRM SAID EUGENE T HERBERT A CONSULTING OMBUDSMAN TO THE INTERNATIONAL MONETARY FUND JUST LOOK FOR THE PERSON THAT EVERYBODY ALREADY GOES TO FOR ADVICE MOST HEAD OMBUDSMEN EARN 60000 TO 90000 A YEAR SAID MARY P ROWE AN OMBUDSMAN AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WHO COLLECTS DATA ON THE PROFESSION THEY OFTEN REPORT TO THE COMPANY PRESIDENT OR BOARD OF DIRECTORS OMBUDSMEN DON'T HANDLE ISSUES COVERED BY UNION CONTRACTS BUT ON OTHER ISSUES THEY DO WORK WITH UNION MEMBERS MANY OF THE COMPLAINTS THAT WORKERS BRING TO OMBUDSMEN STEM FROM PERSONALITY CONFLICTS BETWEEN WORKERS AND SUPERVISORS BUT DISCRIMINATION AND SEXUAL HARASSMENT COME UP TOO A FEW MONTHS AGO FOR EXAMPLE AN EMPLOYEE AT TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND NEW YORK BECAME CONVINCED THAT A COWORKER WAS DISTRIBUTING WORK IN A RACIALLY DISCRIMINATORY WAY WHEN AN OMBUDSMAN INVESTIGATED THOUGH IT TURNED OUT THAT THE COWORKER HAD SET UP THE PARTICULAR DISTRIBUTION SYSTEM IN ORDER TO SAVE TIME THE OMBUDSMAN EXPLAINED THE PROBLEM TO THE COWORKER WHO CHANGED THE SYSTEM MEANWHILE THE EMPLOYEE WHO REPORTED THE PROBLEM BECAME A HERO FOR THAT WORK GROUP BECAUSE OTHERS ALSO HAD DETECTED DISCRIMINATION SAID MATINA S HORNER A FORMER RADCLIFFE COLLEGE PRESIDENT WHO IS EXECUTIVE VICE PRESIDENT AND HEAD OF THE TIAACREF OMBUDSMAN PROGRAM OMBUDSMEN MAY BE ESPECIALLY USEFUL IN THE GROWING AREA OF SEXUALHARASSMENT LITIGATION A COMPANY WHOSE OMBUDSMAN HAS LOOKED INTO THE ACCUSATIONS CAN ARGUE THAT IT TOOK ALL REASONABLE MEASURES AGAINST THE ALLEGED HARASSER WHICH IS ONE LEGAL DEFENSE FOR COMPANIES IN SUCH CASES OF COURSE HAVING AN OMBUDSMAN IS NO GUARANTEE OF STAVING OFF OR WINNING LAWSUITS MARY KIENTZY A LIEUTENANT IN MCDONNELL DOUGLAS CORP'S SECURITY FORCE WENT TO A COMPANY OMBUDSMAN AFTER SHE WAS FIRED AND ALLEGED SEX DISCRIMINATION AFTER THE INVESTIGATION THE DETAILS OF WHICH ARE CONFIDENTIAL SHE SUED ANYWAY AND WON A JURY AWARD OF MORE THAN 600000 MCDONNELL DOUGLAS APPEALED AND A RULING IS EXPECTED FROM A FEDERAL APPEALS COURT IN ST LOUIS WHERE THE COMPANY IS BASED STILL THE TOUCHYFEELY APPROACH DOES SEEM TO WHITTLE LITIGATION EXPENSES ALTHOUGH NO ONE IS SURE EXACTLY HOW MUCH ESTIMATES VARY FROM 15000 TO 50000 FOR THE AVERAGE CASE KEPT OUT OF COURT YOU'RE DEALING WITH THE UNKNOWN OF PROVING A NEGATIVE SAID MR HERBERT OF THE IMF NOBODY CAN BE SURE WHETHER A CASE WOULD HAVE GONE TO TRIAL FOR INSTANCE OR HOW MUCH A JURY MIGHT HAVE AWARDED OMBUDSMEN CITE OTHER HARDTOMEASURE BENEFITS OF THE PROGRAMS SUCH AS GREATER PRODUCTIVITY AND EARLY DETECTION OF EMPLOYEE CONCERNS AT SANDIA NATIONAL LABORATORIES IN LIVERMORE CALIF FOR INSTANCE OMBUDSMAN MIKE BIRNBAUM SAW THAT A LOT OF EMPLOYEES ARE AFRAID THEIR BENEFITS WILL CHANGE WHEN AMERICAN TELEPHONE & TELEGRAPH CO'S CONTRACT TO RUN THE LABORATORIES EXPIRES IN SEPTEMBER MR BIRNBAUM TOLD TOP MANAGEMENT AND A TRANSITION PANEL STARTED LOOKING INTO THE QUESTION MANY TIMES OMBUDSMEN SIMPLY COACH PEOPLE ON HOW TO HANDLE THEMSELVES MORE PROFESSIONALLY AS THE PRESSURES GET STRONGER ON MANAGEMENT TO PRODUCE THE BEHAVIOR GETS LESS DESIRABLE SAID MARY G SIMON OMBUDSMAN FOR THE TRANSMISSION BUSINESS UNIT OF AT&T CRITICS OF OMBUDSMEN PROGRAMS WARN THAT DISCUSSIONS WITH EMPLOYEES MAY BE LESS CONFIDENTIAL THAN EMPLOYEES REALIZE JUST AS CORPORATE HOT LINES HAVE SOMETIMES PROVED TO BE LESS ANONYMOUS THAN ADVERTISED BUT IN THE FEW LAWSUITS IN WHICH ATTORNEYS HAVE TRIED TO PRY OPEN OMBUDSMAN RECORDS FEDERAL DISTRICT COURTS HAVE FOUND THAT BREAKING CONFIDENTIALITY WOULD DO MORE HARM THAN GOOD AND HAVEN'T ALLOWED IT NEW YORK'S HIGHEST COURT ORDERED NEW YORK CITY HOSPITALS TO PROVIDE HOUSING FOR THE MENTALLY ILL HOMELESS BEFORE RELEASING THEM FROM TREATMENT A DECISION THAT COULD COST THE CITY MILLIONS OF DOLLARS THE 60 DECISION BY THE NEW YORK COURT OF APPEALS UPHELD TWO LOWER COURT INTERPRETATIONS OF A STATE STATUTE THE MENTAL HYGIENE LAW THAT BROADLY DEFINES THE OBLIGATIONS OF PUBLIC HOSPITALS WHEN RELEASING THE MENTALLY ILL FROM CONFINED TREATMENT THE SUIT WAS FILED IN 1987 BY THE NEW YORKBASED COALITION FOR THE HOMELESS AGAINST THE NEW YORK HEALTH AND HOSPITALS CORP THE ADMINISTRATIVE AGENCY THAT OPERATES THE CITY'S MUNICIPAL HOSPITALS WE'RE ECSTATIC SAID MARY BROSNAHAN EXECUTIVE DIRECTOR OF THE COALITION WHICH REPRESENTS SOME 12000 MENTALLY ILL HOMELESS IN NEW YORK THE VAST MAJORITY OF WHOM ARE TAKEN TO PUBLIC HOSPITALS WHEN THEY NEED SHORTTERM TREATMENT AND THEN ARE RELEASED FINALLY WE HAVE THE LEGAL MECHANISM TO HOLD THE CITY'S FEET TO THE FIRE AND STOP THE DUMPING OF THE MENTALLY ILL ON THE STREETS WHICH HAS GONE ON ROUTINELY ONLY ONE OTHER STATE SUPREME COURT ARIZONA'S HAS RULED SIMILARLY SAID THE COALITION'S LAWYER ROBERT M HAYES OF PORTLAND MAINE THE LIKELIHOOD OF MORE SUCH SUITS DEPENDS ON THE LANGUAGE IN INDIVIDUAL STATE LAWS REGARDING THE RELEASE OF MENTALLY ILL PATIENTS FROM PUBLIC HOSPITALS MR HAYES SAYS HE HAS FILED A SIMILAR SUIT IN PORTLAND IN NEW YORK THE COALITION FORMERLY HEADED BY MR HAYES CONTENDED THAT THE STATE LAW REQUIRES WRITTEN SERVICE PLANS FOR EACH RELEASE AND THAT EACH PLAN MUST INCLUDE A SPECIFIC RECOMMENDATION OF THE TYPE OF RESIDENCE IN WHICH THE PATIENT IS TO LIVE THAT LANGUAGE ARGUED MR HAYES WAS BROAD ENOUGH TO OBLIGATE THE CITY TO SECURE ADEQUATE AND APPROPRIATE HOUSING FOR ALL THE MENTALLY ILL HOMELESS NEW YORK'S HIGH COURT AGREED BUT IT STOPPED SHORT OF ORDERING CITY HOSPITAL OFFICIALS TO BUILD CREATE SUPPLY OR FUND SUCH HOUSING RATHER THE STATE HIGH COURT ORDERED CITY HOSPITAL OFFICIALS TO TAKE CONCRETE STEPS TO MAKE THE HOUSING AVAILABLE O PETER SHERWOOD AN ATTORNEY FOR THE CITY TOOK HEART FROM THAT ASPECT OF THE RULING SAYING THE CITY IS COMMITTED TO WORKING WITH THE STATE AND FEDERAL GOVERNMENT TO INCREASE THE AVAILABILITY OF SUCH HOUSING IN LEGAL BRIEFS MR SHERWOOD ESTIMATED THAT IT WOULD COST NEW YORK BETWEEN 50000 AND 75000 A PATIENT TO PROVIDE HOUSING FOR THE MENTALLY ILL HOMELESS WALLACH'S SELFHELP E ROBERT WALLACH HAS TOLD US DISTRICT JUDGE RICHARD OWEN THAT HE WANTS TO REPRESENT HIMSELF NEXT MONTH AT HIS RETRIAL ON INFLUENCEPEDDLING CHARGES CONNECTED TO THE WEDTECH CORP DEFENSE CONTRACTING SCANDAL AFTER HIS CONVICTION IN THE FIRST TRIAL WAS THROWN OUT BY AN APPEALS COURT MR WALLACH LAST YEAR ARRANGED FOR MICHAEL ARMSTRONG A WELLKNOWN DEFENSE LAWYER IN NEW YORK TO LEAD THE DEFENSE AT THE SECOND TRIAL MR WALLACH SAID HIS LATEST DECISION IS NO REFLECTION ON MR ARMSTRONG BUT HAS TO DO WITH HIS FEELING THAT THE CONDUCT OF THE DEFENSE AND THE CONSEQUENCES OF THIS TRIAL TO MY FAMILY AND MYSELF I BELIEVE I CAN DELEGATE TO NO ONE ELSE JUDGE OWEN HAS YET TO RULE ON MR WALLACH'S REQUEST BALLARDBOUND JAMES J HANKS JR WILL JOINED BALLARD SPAHR ANDREWS & INGERSOLL AS A PARTNER MR HANKS IS LEAVING BALTIMOREBASED WEINBERG & GREEN WHERE HE WORKED FOR 23 YEARS TO HEAD THE BUSINESS AND FINANCE DEPARTMENT OF BALLARD SPAHR'S BALTIMORE OFFICE BALLARD SPAHR IS A BIG PHILADELPHIA FIRM THAT OPENED ITS BALTIMORE OFFICE LAST YEAR MR HANKS SAID HE IS TAKING WITH HIM TWO LAWYERS AND SEVERAL MAJOR CLIENTS WHOM HE DECLINED TO NAME WHO'S NEWS FIVE LAWYERS FROM THE NEW YORK LAW FIRM TANNER PROPP & FERSKO HAVE JOINED SILLS CUMMIS ZUCKERMAN RADIN TISCHMAN EPSTEIN & GROSS THREE OF THE NEW SILLS CUMMIS LAWYERS ARE PARTNERS INCLUDING RICHARD J SCHULMAN BERNARD FLATEMAN AND RAYMOND S FERSKO A BIOTECHNOLOGY AND PHARMACEUTICAL LAW SPECIALIST WHO WILL HEAD THE NEWARK NJ FIRM'S NEW YORK OFFICE MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9302190102 930219 CRACKING DOWN WITHOUT CRACKING UP BY DAVID BROOKS JOHANNESBURG A CROWD OF ANGRY BLACK MEN HURL ROCKS AND BOTTLES AT A LINE OF WHITE SOLDIERS THE SOLDIERS PREPARE TO RETALIATE WITH A SALVO OF RUBBER BULLETS THE NEW SOUTH AFRICA CAN LOOK A LOT LIKE THE OLD SOUTH AFRICA BUT EVEN AS RIOTS SWEPT THROUGH JOHANNESBURG EARLIER THIS MONTH THERE WAS A DIFFERENCE A WHITE LIEUTENANT WAS HUDDLED WITH A LEADER OF THE TAXI DRIVERS WHOSE PROTEST RALLY HAD BEEN HIJACKED BY DRUNKEN YOUNG MEN IF THERE'S MORE TROUBLE WE'LL HAVE TO ARREST PEOPLE THE LIEUTENANT SAID IF THERE ARE TROUBLEMAKERS THE BLACK DRIVER REPLIED WE'LL HELP YOU ARREST THEM IF THE NEW SOUTH AFRICA DOESN'T YET HAVE A MOTTO WE'LL HELP YOU ARREST THEM SHOULD BE IT IN THE LAND THAT IS NOW BEING BORN SALVOS OF RUBBER BULLETS WILL BE LET LOOSE IN A SPIRIT OF MULTIRACIAL COOPERATION LAST WEEKEND THE AFRICAN NATIONAL CONGRESS AND THE RULING NATIONAL PARTY APPARENTLY STRUCK A DEAL LOCKING THE TWO INTO A COALITION GOVERNMENT THAT WILL LAST UNTIL 1999 THE PURPOSE OF THE AUTOCRATIC REGIME WILL BE TO FORCE ORDER ON THIS NEAR CHAOTIC NATION THEY ARE GOING TO IMPOSE A SECURITY CLAMPDOWN THE LIKES OF WHICH HASN'T BEEN SEEN IN THIS COUNTRY SAYS AFRICA INSTITUTE SECURITY ANALYST SIMON BAYNHAM INTERNAL SECURITY WILL BE A BLEEDING SORE FOR THE ANC AS THEY WELL REALIZE ANC/NATIONALIST COOPERATION IS ASSURED BECAUSE THE NATIONAL PARTY LACKS THE LEGITIMACY TO RESTORE ORDER AND THE ANC LACKS AN ARMY THE ANC PUBLICLY TALKS ABOUT MERGING ITS ILLTRAINED AND DEFEATED ARMED WING WITH THE CURRENT AFRIKANERDOMINATED SECURITY SERVICES BUT IN REALITY MILITARY EXPERTS SAY THERE WILL BE NO ALTERNATIVE TO ACCEPTING THE AFRIKANER FORCE WHILE PUTTING BLACK POLITICAL LEADERSHIP AT THE TOP OF IT SOUTH AFRICA IS NOT A PLACE WHERE THERE IS ONE VICTORIOUS LIBERATION MOVEMENT THAT WILL SIMPLY TAKE OVER FROM THE DEFEATED REGIME THE ANC AND THE NATIONALISTS ARE BOTH DEFEATED ORGANIZATIONS BOTH OF THEM WERE HIGHLY IDEOLOGICAL MOVEMENTS WHOSE PHILOSOPHIES HAVE BEEN EXPOSED AS FAILURES THE NATIONAL SOCIALISM OF APARTHEID FOR THE NATS AND LIBERATION SOCIALISM FOR THE ANC THE LEADERSHIP OF EACH MUST CONTINUALLY MISLEAD ITS RANK AND FILE IN ORDER TO MAKE ADJUSTMENTS TO REALITY BOTH ORGANIZATIONS HAVE BEEN EXHAUSTED AND FRACTURED BY A LONG AND COSTLY WAR AGAINST EACH OTHER NOT COINCIDENTALLY BOTH OF THEM LOST THAT WAR IN SOUTH AFRICA THE WAR WON THE WAR THE VIOLENCE AND CORRUPTION THE NATIONALISTS AND THE ANC SPAWNED HAS ESCALATED WILDLY OUT OF THEIR CONTROL THE WHITE GOVERNMENT TURNED ALMOST EVERY SECTOR OF SOCIETY INTO A BATTLEGROUND TO DEFEND THE REGIME ONE RESULT WAS THAT THE POLICE FORCE BECAME SO POLITICALLY VICIOUS THAT IT CAN'T DO ITS REAL JOB FIGHTING CRIME MEANWHILE THE ANC SPONSORED SUCH POLICIES AS LIBERATION BEFORE EDUCATION WHICH HELPED PRODUCE THE GENERATION OF UNEDUCATED AND JOBLESS YOUNG PEOPLE WHO NOW TERRORIZE THE TOWNSHIPS THE PITCHED BATTLES BETWEEN THE ANC AND ZULUBASED INKATHA DOMINATE WORLD HEADLINES BUT IT IS THE DAILY DRIZZLE OF SMALL VIOLENCE THAT IS MOST CORROSIVE FOR MANY THE ARMED STRUGGLE IS TOO MUCH FUN TO GIVE UP WHEN STUDENTS IN THREE SCHOOLS IN KWAZULU IN NATAL FOUND OUT EARLIER THIS MONTH THEY WERE BEING HELD BACK A GRADE THEY GRABBED WEAPONS MARCHED TO THE OFFICE AND TOOK CONTROL OF THE ADMISSIONS DEPARTMENT EVERY DAY BRINGS REPORTS NOW BURIED IN THE IN BRIEF SECTION OF THE NEWSPAPERS OF THIS OR THAT PERSON BEING KILLED BECAUSE HE BELONGED TO THIS OR THAT PARTY IT'S NOT POSSIBLE TO HOLD FREE AND FAIR ELECTIONS WITH THE LEVEL OF INTOLERANCE WE'RE SEEING SAYS JOHN KANE BERMAN DIRECTOR OF THE SOUTH AFRICA INSTITUTE OF RACE RELATIONS PEOPLE WILL FEEL COMPELLED TO VOTE FOR WHOEVER HAS THE POWER OF COERCION IN A GIVEN AREA FOR ALL OF THE THOUSANDS OF POLITICAL KILLINGS EACH YEAR THEY REPRESENT LESS THAN A FIFTH OF ALL MURDERS IN THE COUNTRY JOHANNESBURG HAS BECOME BY SOME MEASURES THE MOST DANGEROUS CITY IN THE WORLD ARMED ROBBERY IS UP 21 OVER A YEAR AGO IN THE RICH WHITE SUBURBS SUCH AS HOUGHTON KEEPING UP WITH THE BOTHAS MEANS MAKING SURE THAT YOUR NEIGHBOR DOESN'T HAVE A SHARPER BRAND OF RAZOR WIRE ATOP HIS PROTECTIVE WALL THAN YOU DO A ROUGH IDEA OF THE LEVEL OF CRIME IN THE BLACK TOWNSHIPS CAN BE GARNERED BY LOOKING AT THE AGES IN THE OBIT SECTION OF THE DAILY SOWETAN 33 35 48 25 THE NEXT GOVERNMENT MUST BE SEEN TO BE AGAINST VIOLENCE BUT NOT AGAINST THE LEGITIMATE GROUPS WHO WILL SOMETIMES COMMIT IT IF THE NEXT MULTIRACIAL GOVERNMENT USES THE CRACKDOWN ON DISORDER AS A COVER TO REPRESS OPPOSITION GROUPS SUCH AS INKATHA THEN A TYRANNY OF A MAJORITY WILL REPLACE A TYRANNY OF A MINORITY THE ANC'S STILL EVIDENT TOTALITARIAN INSTINCTS WOULD SURFACE AND IT WOULD BE TIME TO TURN OUT THE LIGHTS WHAT SOUTH AFRICA NEEDS IS A LEADERSHIP THAT BEGINS EACH DAY PROSTRATE ON A STONE FLOOR REPEATING VOWS OF HUMILITY AND UNIVERSAL COOPERATION IN MANY AREAS THE ANC LEADERSHIP HAS SHOWN ITSELF TO BE REALISTIC AND COOPERATIVE BUT THE ALARMING ELEMENT IN LAST WEEKEND'S DEAL WAS THE WAY IT SEEMS TO FREEZE OUT ALL GROUPS OTHER THAN THOSE IN THE ANC/NAT LOVE TRYST IT WEAKENS THE PROSPECT THAT MUCH POWER WILL BE SPREAD AMONG REGIONAL GOVERNMENTS EVEN THOUGH MANY OF THE COUNTRY'S POLITICAL GROUPS INSIST UPON THIS ON SATURDAY INKATHA LEADER MANGOSUTHU BUTHELEZI VEHEMENTLY REJECTED THE ARRANGEMENT HE SAID THAT IF THE GOVERNMENT WANTED TO IMPOSE THIS CENTRAL STATE SOLUTION ON HIS REGION KWAZULU IT WOULD HAVE TO DISPATCH THE ARMY AND CONQUER IT BY FORCE TWO YEARS AGO THE UNBANNED ANC TRIED TO NEUTRALIZE INKATHA IN SOME REGIONS IT LEARNED THAT WHEN YOU PUSH ZULUS THEY PUSH BACK 7700 BLACKS ARE DEAD AS A RESULT THE YUGOSLAVIA SCENARIO IS SO MUCH ON EVERYBODY'S TONGUE THAT PROBABLY THE ANC AND THE NATIONAL PARTY WILL FIND A WAY TO SATISFY INKATHA AT LEAST ON PAPER BUT THE DEPRESSING ASPECT OF THE DEAL IS THE LEVEL OF ARROGANCE IT REVEALS AMONG THE ANC LEADERSHIP WHO INSISTED THAT THE NATIONALISTS CAVE IN ON REGIONALISM THEY SEEM WILLING TO USE THEIR PRESUMED MAJORITY STATUS TO CENTRALIZE POWER AND ROLL OVER THOSE MINORITIES WHO OPPOSE THEM IF YOU'RE LOOKING FOR GOOD NEWS ABOUT THE ANC ODDLY ENOUGH ECONOMIC POLICY IS THE PLACE TO FIND IT THE SOUVENIR STAND AT ANC HEADQUARTERS STILL STOCKS BOOKS OF MARXIST ECONOMICS REPORTS PRAISING CUBA'S ECONOMIC MIRACLE AND NIFTY REDISTRIBUTE THE WEALTH TSHIRTS BUT UPSTAIRS THERE IS A THIN CRUST OF POLICY MAKERS WHO UNDERSTAND ECONOMICS NONE OF THE BUSINESS LEADERS OR ECONOMISTS I SPOKE TO BELIEVE THAT THE ANC STILL ADVOCATES SOCIALISM OR WIDESPREAD NATIONALIZATION OF INDUSTRY THEY HAVE BECOME SOUTH AFRICA'S CONSERVATIVE PARTY IN THE DICTIONARY MEANING OF CONSERVATIVE SAYS LEON LOUW OF THE FREE MARKET FOUNDATION IN JOHANNESBURG INDEED I HAD BACKTOBACK INTERVIEWS WITH ANC ECONOMICS BOSS TREVOR MANUEL AND SOUTH AFRICAN FINANCE MINISTER DEREK KEYS NEITHER OF THE MEN HAS A SET ECONOMIC PHILOSOPHY BOTH HAVE INTERVENTIONIST INSTINCTS BUT WITHIN REASON ON SOME ISSUES RAISING TAXES FOR EXAMPLE MR KEYS OUTFLANKED THE ANC ON THE LEFT THE ECONOMIC MODEL ALL SIDES TALK ABOUT IS A SERIES OF ROUNDTABLES WITH BUSINESS GOVERNMENT LABOR AND OTHER GROUPS SEEKING CONSENSUS ON ECONOMIC POLICY WHEN YOUR COUNTRY IS THREATENING TO BREAK APART MAYBE CORPORATIST BACKSCRATCHING CONSENSUSBUILDING AS THEY CALL IT IS THE ONLY WAY TO GO THERE'S NO REASON TO GIVE UP ON SOUTH AFRICA THE PAST YEAR OF VIOLENCE AND RECESSION HAS HAD A SALUTARY DOWNSIZING EFFECT ON POPULAR EXPECTATIONS THE ANC'S ODYSSEY FROM SOCIALISM HAS BEEN REMARKABLE AND IT MAY NOT BE OVER YET THIS IS A VERY RELIGIOUS COUNTRY WITH A LARGE CAPACITY FOR FORGIVENESS IT'S POSSIBLE FOR A WHITE PERSON TO WALK DOWN THE STREET IN CENTRAL JOHANNESBURG WHICH IS ALL BLACK ON WEEKENDS NOW THAT WHITE FLIGHT IS COMPLETE AND NOT DETECT A SINGLE HOSTILE LOOK EVEN THE WHITE RACISTS MAKE A BOW TOWARD RACIAL TOLERANCE YOU NOW HEAR THEM DIVIDING THE WORLD BETWEEN WHITES AND A TRIBE CALLED THE WHO HAPPEN TO BE AS IN THE WOMAN WHO CLEANS MY TOILET WHO HAPPENS TO BE BLACK THE OUTSIDE WORLD SEEMS LESS INTERESTED IN WHAT MULTIRACIAL ARRANGEMENT IS MADE SO LONG AS SOMETHING CALLED MAJORITY RULE IS THE RESULT THERE'S NO DOUBT THAT SOUTH AFRICA'S DAYS AS A GLOBAL PARIAH ARE OVER THE QUESTION IS WHETHER ITS NEW ROLE IS AS JUST ANOTHER IGNORED AND ATROCIOUS AFRICAN COUNTRY MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9302190101 930219 INTERNATIONAL SONY'S PRETAX PROFIT DROPPED 62 IN QUARTER AS SLUMP IN CONSUMER ELECTRONICS CONTINUED BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP HIT BY A CONTINUING SLUMP IN CONSUMERELECTRONICS SALES REPORTED A 62 DROP IN GROUP PRETAX EARNINGS FOR ITS FISCAL THIRD QUARTER SONY HAS BEEN SQUEEZED BY THE SAME FORCES HURTING ALL OF JAPAN'S MAJOR CONSUMERELECTRONICS MAKERS PENNYPINCHING CONSUMERS AND A LACK OF BLOCKBUSTER NEW PRODUCTS AND ANALYSTS SAID THERE IS NO QUICK TURNAROUND IN SIGHT FOR THE COMPANY WE'LL SEE A GRADUAL RECOVERY BUT WE WON'T SEE A SHARP RECOVERY FOR A WHILE SAID CHUCK GOTO ANALYST AT SG WARBURG JAPAN INC FOR THE QUARTER ENDED DEC 31 SONY REPORTED GROUP PRETAX PROFIT OF 5063 BILLION YEN 4238 MILLION DOWN FROM 13173 BILLION YEN IN THE YEAREARLIER PERIOD CONSOLIDATED NET INCOME DROPPED 72 TO 2713 BILLION YEN GROUP SALES FELL 38 TO 108 TRILLION YEN DRAGGED DOWN BY DECLINES OF 10 IN EUROPE AND 86 IN JAPAN SONY LEFT ITS PROJECTION OF GROUP NET INCOME FOR THE YEAR ENDING MARCH 31 UNCHANGED AT 35 BILLION YEN DOWN 71 FROM LAST YEAR SONY OFFICIALS ATTRIBUTED THE POOR SHOWING TO WEAK DEMAND FOR MANY OF THE COMPANY'S CORE AUDIO AND VISUAL PRODUCTS AND TO THE APPRECIATION OF THE YEN AGAINST THE US DOLLAR AND OTHER CURRENCIES A STRONGER YEN MAKES JAPANESE GOODS MORE EXPENSIVE FOR OVERSEAS CONSUMERS SONY ALSO SAID THE DECLINE IN NET INCOME WOULD HAVE BEEN A LESSSEVERE 24 HAD IT NOT BEEN FOR A GAIN OF 6154 BILLION YEN IN THE YEAREARLIER PERIOD FROM THE SALE OF A SUBSIDIARY'S STOCK SONY OFFICIALS WEREN'T OPTIMISTIC ABOUT A QUICK IMPROVEMENT IN THE CONSUMERELECTRONICS MARKET AND WOULDN'T SAY WHEN THEY THOUGHT SONY'S EARNINGS WOULD STOP DECLINING A SPOKESMAN SAID SONY HOPES DEMAND EVENTUALLY WILL BE SPURRED BY AN ACCUMULATION OF ATTRACTIVE PRODUCTS INCLUDING SONY'S NEW MINIDISC PLAYERS WHICH PLAY SMALL RECORDABLE COMPACT DISKS BUT THE OFFICIALS SAID SONY THINKS IT WILL BE TWO TO THREE YEARS BEFORE THE MINIDISC BECOMES A BIG HIT THE POOR OUTLOOK FOR SALES OF AUDIO AND VISUAL PRODUCTS LEAVES SONY IN A VULNERABLE POSITION SONY'S DEPENDENCE ON CONSUMER ELECTRONICS IS HIGH SAID MR GOTO THEY'VE BEEN TRYING TO GET MORE INDUSTRIALELECTRONICS ORIENTED BUT THEY'RE NOT REALLY THERE SONY DID REPORT HEADWAY IN CUTTING COSTS CAPITAL INVESTMENT FELL 56 IN THE QUARTER TO 48 BILLION YEN SONY SAID PARTLY BECAUSE THE COMPANY HAS COMPLETED A RECENT PROGRAM TO INCREASE CAPACITY FOR MAJOR PRODUCTS AND PARTLY BECAUSE OF A DECISION TO CUT OUTLAYS SONY REPORTS UNCONSOLIDATED EARNINGS JUST TWICE A YEAR AND SO DIDN'T ANNOUNCE RESULTS YESTERDAY FOR THE PARENT COMPANY ALONE 9302190100 930219 NEW ASTROS OWNER GOES TO BAT FOR CHANGE MCLANE TAKES ON EVERYTHING FROM VENDORS TO RACISM BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DRAYTON MCLANE JR THE ROOKIE OWNER OF THE HOUSTON ASTROS BASEBALL TEAM IS CHANGING EVERYTHING ABOUT HIS PART OF THE NATIONAL PASTIME FROM THE WAY HOT DOGS ARE SOLD TO HOW MINORITIES ARE RECRUITED BY THE FRONT OFFICE MEANWHILE MR MCLANE'S FOOD VENDORS IN THE ASTRODOME ARE SUPPOSED TO EXTEND A WARMER WELCOME TO ALL CUSTOMERS FOR ONE THING MR MCLANE HAS ORDERED THAT CONCESSION STAND OPERATORS IN THE ASTRODOME WHO USED TO SIT ON STOOLS IN FRONT OF CASH REGISTERS STAND TO WORK IT BOTHERS ME WHEN PEOPLE SIT DOWN AND TAKE MY MONEY SAYS MR MCLANE MR MCLANE PROMISES HE'LL BE STANDING TOO AND STROLLING THE STANDS TO SHAKE HANDS WITH FANS PERSONALLY RATHER THAN ENSCONCED IN EXCLUSIVE SEATS FAR FROM HIS CUSTOMERS AND HE'S VOWING TO FIX NOT ONLY THE ASTROS' WOEFUL PERFORMANCE ON THE FIELD BUT TO MAKE THEIR FRONT OFFICE A LEADER IN REMEDYING THE RACISM CONTROVERSY THAT'S SWIRLING AROUND BASEBALL THIS MONTH MARGE SCHOTT OWNER OF THE CINCINNATI REDS WAS SUSPENDED FROM RUNNING HER TEAM DURING THE 1993 SEASON BECAUSE OF ALLEGED SLURS AGAINST BLACKS JEWS AND JAPANESE MR MCLANE HAS INSTITUTED A MINORITY MANAGEMENT TRAINING PROGRAM THAT WILL PAY SELECTED COLLEGE STUDENTS 12000 A SEASON TO LEARN EVERYTHING FROM SELLING TICKETS TO RESEARCHING NEW ITEMS FOR THE ASTRODOME'S CONCESSION STANDS AFTERWARD THE ASTROS WILL HELP SUCCESSFUL INTERNS GET JOBS ON OTHER TEAMS OR HIRE THEM IN HOUSTON BOB WATSON THE ASTROS' ASSISTANT GENERAL MANAGER SAYS HIS NEW BOSS IS MAKING A COMMITMENT TO MAJOR CHANGE IN MAJOR LEAGUE BASEBALL WHICH HAS ONLY SIX BLACKS IN TOP MANAGEMENT ON 28 TEAMS BASEBALL'S IMAGE WOES ASIDE MR MCLANE HAS PLENTY OF OTHER WORRIES WITH HIS ASTROS FOR ONE THING THE AVERAGE ATTENDANCE AT THE 57000SEAT ASTRODOME WAS A MERE 14956 LAST YEAR WHEN MR MCLANE LAST ATTENDED A GAME TWO YEARS AGO ON A SUNDAY AFTERNOON THERE WERE ONLY ABOUT 7000 OTHERS THERE HE SAYS THAT'S ABOUT HALF THE SIZE CROWD WE GET AT HIGH SCHOOL FOOTBALL GAMES IN TEMPLE TEXAS IT WAS SAD HE SAYS NEVERTHELESS MR MCLANE RECENTLY PAID 115 MILLION FOR THE ASTROS AND A 30YEAR LEASE TO THEIR OFTEN NEAREMPTY COVERED STADIUM I LIKE CHALLENGES I LIKE TO SEE THINGS DEVELOP HE SAYS THE ASTROS CERTAINLY HAVE PLENTY OF ROOM FOR IMPROVEMENT THEY LOST 97 OF THEIR 162 GAMES TWO YEARS AGO FOR A LASTPLACE FINISH BEFORE RAISING THEIR MARK TO A MEDIOCRE 8181 IN 1992 PREVIOUS OWNER JOHN MCMULLEN WAS BOOED BY THE FEW REMAINING FANS FOR GUTTING THE TEAM BY REFUSING TO RESIGN SUCH STARS AS PITCHER NOLAN RYAN WHO WENT OFF TO THE TEXAS RANGERS NEAR DALLAS TO TOSS TWO NOHITTERS WORSE MR MCMULLEN A NAVAL ARCHITECT AND AN ABSENTEE OWNER WHO LIVES IN NEW JERSEY ALSO ALIENATED HOUSTON FANS BY THREATENING TO MOVE THE TEAM ELSEWHERE IF THEY DIDN'T TURN OUT IN GREATER NUMBERS JOHN WAS AN EXTREMIST AN EASTERNER SAYS MR MCLANE WHO STILL PROFESSES HIGH REGARD FOR HIS PREDECESSOR'S BUSINESS ACUMEN WHILE VOWING TO HAVE BETTER RELATIONS WITH FANS AFTER ANNOUNCING LAST JULY THAT HE AND MR MCMULLEN HAD AGREED TO THE ASTROS SALE MR MCLANE VENTURED INTO THE STANDS TO SHAKE HANDS SIGN AUTOGRAPHS AND ACCEPT A STANDING OVATION NEWSPAPER COLUMNISTS HAILED HIM AS THE SAVIOR OF BASEBALL IN HOUSTON THE ADULATION HAS PUT AN EXTRA HOP IN MY STEP SAYS THE NEW OWNER NOW COMES THE HARD PART STAYING ON THE PUBLIC'S GOOD SIDE MR MCLANE STILL THE NOMINAL HEAD OF THE 48 BILLION A YEAR MCLANE CO HE SOLD TO WALMART STORES INC IN 1990 FOR 275 MILLION IN STOCK SAYS HE HAS WRITTEN ANSWERS TO MORE THAN 100 LETTERS FROM ASTROS FANS WHO HAVE PLENTY OF COMPLAINTS AND SUGGESTIONS SOME OF THEM WANT ME TO SIGN MULTIMILLIONDOLLAR PLAYERS BUT ALSO CUT THE PRICE OF TICKETS HE SAYS WHILE HE ISN'T CHANGING TICKET PRICES FOR NOW HE IS RECRUITING BIGNAME TALENT LAST DECEMBER HE AGREED TO PAY 195 MILLION OVER FOUR YEARS TO PITCHING ACE DOUG DRABEK WHO JUMPED SHIP FROM THE PITTSBURGH PIRATES A FEW DAYS LATER HE WOOED GREG SWINDELL A STAR HURLER WITH THE CINCINNATI REDS FOR 17 MILLION FOR FOUR YEARS THOSE CONTRACTS TOGETHER EXCEED THE ASTROS ENTIRE ANNUAL PAYROLL UNDER THE PREVIOUS OWNER SAYS GEORGE W BUSH JR MANAGING GENERAL PARTNER FOR THE TEXAS RANGERS BASEBALL TEAM DRAYTON WILL FIND THAT EVERYONE WHO'S INTERESTED IN THE TEAM WANTS TO SPEND HIS MONEY HE SAYS THAT FOR NEW OWNERS THE LINE BETWEEN BEING REVERED TO REVILED BY THE PUBLIC IS ALL TOO SLIM HE'LL HAVE A HONEYMOON PERIOD LIKE IN POLITICS HE'LL REMAIN THE TOAST OF THE TOWN UNTIL EXPECTATIONS RUN TOO HIGH AND THE TEAM FALTERS MR MCLANE KNOWS HIS BASEBALL ACQUISITION MOVES HIM MORE INTO THE ARENA OF PUBLIC SCRUTINY THAN HIS PRIVATELY HELD GROCERY SUPPLY BUSINESS EVER DID I VIEW THE ASTROS AS A PUBLIC TRUST NOT JUST SOMETHING TO MAKE A HUGE PROFIT HE DESCRIBES THE TEAM AS MARGINALLY PROFITABLE DESPITE RECENT LOW ATTENDANCE BECAUSE IT HAS HAD ONE OF BASEBALL'S SMALLEST PAYROLLS THE TEAM'S MAIN FINANCIAL VALUE IS PROBABLY AS AN APPRECIATING ASSET MR MCLANE SAYS HIS PREDECESSOR BOUGHT THE ASTROS IN 1979 FOR 17 MILLION AND SOLD THEM TO HIM 13 YEARS LATER FOR MORE THAN FIVE TIMES THAT AMOUNT I THOUGHT IT WOULD BE A SOUND BUSINESS INVESTMENT HE SAYS TO BE SURE THIS MAY SEEM A TERRIBLE TIME TO INVEST IN MAJOR LEAGUE BASEBALL CONSIDERING THE MARGE SCHOTT FLAP AMONG OTHER THINGS MR MCLANE SAYS BASEBALL IN THE SHORT TERM IS IN CHAOS THE TEAMS LACK A COMMISSIONER TO RUN THINGS THE OWNERS AND PLAYERS DON'T LIKE EACH OTHER AND THAT COULD DELAY SPRING TRAINING THE NEXT TELEVISION CONTRACT MAY BE FOR REDUCED REVENUE AND OVERALL ATTENDANCE IS DOWN BUT MR MCLANE'S TRACK RECORD FOR BUILDING UP THE VALUE OF A BUSINESS IS LEGENDARY IN TEXAS WHEN HE JOINED HIS FATHER'S WHOLESALE COMPANY IN 1959 ANNUAL SALES WERE ABOUT 2 MILLION THE YOUNGER MCLANE HIT UPON THE IDEA OF SPECIALIZING IN SUPPLYING THE CONVENIENCE STORES THAT STARTED POPPING UP IN THE EARLY 1960S MANY OTHER DISTRIBUTORS INITIALLY IGNORED SUCH STORES AS TOO LITTLE TO BOTHER WITH MEANWHILE MR MCLANE LINED UP CUSTOMERS COASTTOCOAST ACCOMMODATING THEIR SPECIAL INVENTORY NEEDS FOR SPACESAVING CONTAINERS AND MORE FREQUENT DELIVERIES TO SAVE STORAGE CAPACITY THUS MCLANE CO'S ANNUAL GROWTH RATE IN THE 1970S AND 1980S AVERAGED 30 LED BY MR MCLANE'S CONTINUING PERSONAL VISITS TO HUNDREDS OF CUSTOMERS A YEAR THAT'S A STRATEGY HE PLANS TO USE TO FILL THE ASTRODOME HE HAS ALREADY MADE SPEECHES TO 40 CIVIC ORGANIZATIONS IN THE HOUSTON AREA OFTEN DRAGGING ALONG ASTROS PLAYERS WHO HADN'T MADE A HABIT OF SUCH APPEARANCES AND HE PERCEIVES HIS EARLY POPULARITY AS STRONG ENOUGH TO STAR HIMSELF IN ASTROS TELEVISION ADS 9302190099 930219 PHILADELPHIA STOCK EXCHANGE TO TRADE NASDAQ ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE PHILADELPHIA STOCK EXCHANGE IS TRYING TO MUSCLE BUSINESS AWAY FROM THE NASDAQ MARKET IN A FURTHER SIGN OF THE HIGH DEMAND FOR OVERTHECOUNTER STOCKS THE PHILADELPHIA EXCHANGE WILL START TRADING 11 NASDAQ ISSUES ON MONDAY OTC STOCKS ARE ALMOST EXCLUSIVELY TRADED ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS SYSTEM A NETWORK OF DEALERS WHO DON'T WORK AT A CENTRAL EXCHANGE BUT INSTEAD TRADE THROUGH A MARKET LINKED BY TELEPHONE AND COMPUTERS THE PHILADELPHIA EXCHANGE WHICH CURRENTLY TRADES 50 OTC OPTION ISSUES JUST RECEIVED CLEARANCE FROM THE SECURITIES AND EXCHANGE COMMISSION TO TRADE AS MANY AS 100 NASDAQ STOCKS ALTHOUGH THE SEC REQUIRES THAT OPTION TRADING AND THE STRAIGHT STOCK TRADING ARE KEPT SEPARATE MANY OF THE CLIENTS WILL BE THE SAME WE HAVE HAD UNANIMOUS DEMAND BY REGISTERED OPTION TRADERS TO GET THESE STOCKS ON OUR EXCHANGE SAYS RICHARD FEINBURG THE PHILADELPHIA SPECIALIST WHO WILL MAKE A MARKET IN THE STOCK ISSUES SHARES OF THE OTC STOCKS ON THE PHILADELPHIA EXCHANGE WILL TRADE SIMILARLY TO THE WAY THEY TRADE ON THE MIDWEST STOCK EXCHANGE'S AUCTION SYSTEM THE MIDWEST STOCK EXCHANGE WHICH BEGAN TRADING NASDAQ STOCKS IN 1987 NOW TRADES 99 OTC STOCKS JACK DEMPSEY A MIDWEST EXCHANGE SPECIALIST WITH DEMPSEY & CO SAYS IN THE NEXT COUPLE OF MONTHS THE EXCHANGE PLANS TO FILE A REQUEST WITH THE SEC TO TRADE 100 TO 200 MORE OTC STOCKS IT'S KIND OF A HYBRID WITH OTC STOCKS USING THE BASIC AUCTION SYSTEM MR DEMPSEY SAYS OUR TRADES ARE ACCOUNTED FOR IN THE BEST BID AND ASK IN THE NASDAQ COMPUTER SYSTEM BUT YOU CAN'T IDENTIFY ON THE TAPE THAT IT COMES FROM OUR EXCHANGE FROM THE VIEWPOINT OF THE SELFREGULATED NATIONAL ASSOCIATION OF SECURITIES DEALERS THE EXCHANGES OPERATE AS ANOTHER MARKET MAKER SAYS RICHARD KETCHUM NASD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER TO DATE THE MIDWEST HAS NOT BEEN PARTICULARLY SUCCESSFUL WITH LESS THAN A 1 SHARE VOLUME IN THE STOCKS THEY KEEP IN THE NASDAQ MARKET SAID MR KETCHUM I WON'T SAY WE DON'T MIND MORE EXCHANGES TRADING OUR STOCKS BUT WE DON'T SEE ANY PROBLEM IN SUCCESSFULLY COMPETING WITH THEM ON MONDAY THE PHILADELPHIA STOCK EXCHANGE WILL START TRADING THE FOLLOWING STOCKS AMERICAN SOFTWARE INC CHARMING SHOPPES INC NEUTROGENA CORP PARAMETRIC TECHNOLOGY QVC NETWORK INC SOFTWARE PUBLISHING CORP STAPLES INC SYNERGEN INC SYNOPTICS COMMUNICATIONS INC TOKOS MEDICAL CORP AND WORTHINGTON INDUSTRIES INC 9302190098 930219 CLINTON CLEARED PENTAGON TO SPEND CONVERSION FUNDS BY MICHAEL K FRISBY AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IN SUPPORT OF DEFENSE CONVERSION PROGRAMS QUIETLY DIRECTED THE PENTAGON TO SPEND 550 MILLION THAT WAS APPROPRIATED LAST FALL BUT NEVER SPENT SENIOR WHITE HOUSE OFFICIALS SAID THE PENTAGON WILL AUTHORIZE THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY TO ALLOCATE THE FUNDS TO VARIOUS CONVERSION PROGRAMS AIMED AT ENABLING DEFENSERELATED INDUSTRIES TO ALSO PRODUCE FOR THE CIVILIAN MARKETPLACE THE MOVE IS CITED BY THE ADMINISTRATION AS A DIRECT CONTRAST TO ITS PREDECESSORS WHICH OPPOSED AND FREQUENTLY BOTTLED UP FUNDS THAT WERE AIMED AT ESTABLISHING SUCH A DUAL USE APPROACH TO DEFENSE RESEARCH AND DEVELOPMENT THE WHITE HOUSE SAID THAT THE DEFENSE RESEARCH AGENCY WILL ASK THE INDUSTRY AND EDUCATORS FOR IDEAS ON THE BEST WAYS TO SPEND THE FUNDS THAT HAVE BEEN EARMARKED FOR A WIDE RANGE OF PROGRAMS FROM GRANT PROGRAMS FOR ENGINEERS TO MANUFACTURING PARTNERSHIPS TO COMMERCIALMILITARY PARTNERSHIPS ON PROJECTS MOREOVER CLINTON ADMINISTRATION OFFICIALS SAID THAT WILLIAM PERRY WHO HAS BEEN NOMINATED TO BE THE NO 2 MAN AT THE DEFENSE DEPARTMENT HAS ESTIMATED THAT ABOUT 30 BILLION COULD BE SAVED IF MILITARY PROCUREMENT RULES WERE REVAMPED TO ALLOW MORE COMPETITION FOR GOODS AND IF INDUSTRIES WERE ALLOWED MORE DUALUSE APPLICATIONS CURRENT PROCUREMENT RULES FORCE COMPANIES PRODUCING MATERIALS FOR MILITARY AND CIVILIAN USE TO KEEP THE OPERATIONS SEPARATE DRIVING UP THE COST OF THE MILITARY VERSION MR PERRY HAS ALSO GIVEN THE FIRST INDICATIONS OF THE ADMINISTRATION'S APPROACH TO DEFENSE ACQUISITION PROMISING STRUCTURAL CHANGES IN THE DEFENSE DEPARTMENT'S MULTIBILLIONDOLLAR SPENDING PROGRAMS IN PAPERS FILED WITH THE SENATE ARMED SERVICES COMMITTEE BUT NOT YET MADE PUBLIC MR PERRY THE NOMINEE FOR DEPUTY DEFENSE SECRETARY SUPPORTED MAKING TWO CHANGES THAT WOULD STRENGTHEN THE HAND OF THE PENTAGON'S SOCALLED ACQUISITION CZAR AT THE EXPENSE OF THE MILITARY FIRST HE SAID THE HEADS OF ACQUISITION IN THE NAVY ARMY AND AIR FORCE DEPARTMENTS SHOULD REPORT DIRECTLY TO THE UNDERSECRETARY FOR ACQUISITION RATHER THAN TO THEIR DEPARTMENT SECRETARIES SECOND HE SAID THE PENTAGON'S JOINT REQUIREMENTS OVERSIGHT COUNCIL WHICH IS RUN BY THE VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF AND WHICH DETERMINES THE BROAD REQUIREMENTS OF THE MILITARY SHOULD BE REPLACED BY A BOARD CHAIRED JOINTLY BY THAT OFFICER AND BY THE UNDERSECRETARY FOR ACQUISITION AMONG OTHER THINGS SUCH A MOVE WOULD BE LIKELY TO MAKE THE MILITARY'S PROCUREMENT PLANS MORE SENSITIVE TO THE BUDGET CRUNCH AND SO FORCE EARLIER DECISIONS ABOUT CUTBACKS IN TACTICAL AVIATION AND THE FUTURE OF THE NAVY'S DEEPSTRIKE OR LONGERRANGE BOMBING MISSION BOTH THE CHANGES IN THE PENTAGON'S ACQUISITION PROCESS WERE RECOMMENDED IN 1986 BY THE PRESIDENTIAL PACKARD COMMISSION ON DEFENSE MANAGEMENT OF WHICH MR PERRY WAS A MEMBER BUT IN HIS SUBMISSION TO THE SENATE PANEL HE SAID I PLAN TO INITIATE AN EVEN BOLDER PLAN OF ACQUISITION REFORM THAN THAT COMMISSION RECOMMENDED HE DIDN'T SPECIFY ALL THE CHANGES HE IS CONTEMPLATING BUT ECHOING THE VIEW OF COMMISSION HEAD DAVID PACKARD THAT THE PENTAGON'S ACQUISITION STAFF OUGHT TO BE CUT AT LEAST 20 MR PERRY SAID HE PLANS TO CUT THE STAFF SIGNIFICANTLY MR CLINTON DIDN'T LIVE UP TO A CAMPAIGN PROMISE THAT EVERY DOLLAR OF DEFENSE CUTS WOULD BE USED ON CONVERSION PROGRAMS BUT HE IS EMPHASIZING IT HIS NATIONAL ECONOMIC COUNCIL HIRED DAVID LANE WHO WORKED AT COOPERS & LYBRAND AND DOROTHY ROBYN AN AIDE ON THE JOINT ECONOMIC COMMITTEE TO OVERSEE THE PROGRAMS THE PENTAGON IS ALSO GEARING UP AND PLANS TO HIRE A CONVERSION MANAGER THE TOP CANDIDATE IS JOAN KELLY HORN A FORMER MISSOURI CONGRESSWOMAN THE PRESIDENT PLANS TO SEND MUCH MORE MONEY TO THE LABOR AND COMMERCE DEPARTMENT TO CONDUCT CONVERSIONRELATED PROGRAMS AFTER THE PENTAGON UNDER THE REPUBLICANS WAS RELUCTANT TO SHIFT FUNDS FROM DEFENSE TO THOSE AGENCIES IN TOTAL CONVERSION WILL GET PART OF THE 203 BILLION THAT THE PRESIDENT HAS EARMARKED FOR THAT AND OTHER RELATED TECHNOLOGICAL AND INVESTMENT PROGRAMS IN FISCAL 1994 THROUGH 1997 THE ADMINISTRATION'S DEFENSE CONVERSION STRATEGY ALSO INCLUDES THE RETRAINING OF WORKERS DISPLACED BY THE CLOSING OF MILITARY FACILITIES ASSISTING COMMUNITIES THAT LOSE FACILITIES AS WELL AS HELPING DEFENSERELATED INDUSTRIES SURVIVE STILL THERE IS OFTEN A POLICY DISPUTE AMONG EXPERTS WHETHER TO DIRECT GOVERNMENT AID TO WORKERS OR TO COMPANIES MS HORN SAID IN A TELEPHONE INTERVIEW YESTERDAY THAT IF SHE IS OFFERED THE JOB SHE WOULDN'T ADVOCATE TAKING A LAISSEZFAIRE APPROACH TO HELPING COMPANIES IN FAVOR OF AIDING WORKERS I REALLY SEE A PLACE FOR BOTH SHE SAID I THINK WHEN YOU HAVE VERY FINE COMPANIES LIKE MCDONNELL DOUGLAS GENERAL DYNAMICS AND BOEING WITH A CULTURE MACHINERY AND ASSETS THERE IS A VERY REAL VALUE THERE WHITE HOUSE OFFICIALS WERE UNABLE TO PINPOINT THE EXACT AMOUNT OF FUNDS TO BE SPENT ON DEFENSE CONVERSION BUT INSISTED IT WOULD BE MORE THAN THE 177 BILLION SPENT THIS FISCAL YEAR AND SAID THAT THEY ARE FAR MORE DEDICATED TO THE PROGRAM PUTTING THE NATIONAL ECONOMIC COUNCIL IN CHARGE OF COORDINATION HAS PLEASED SUPPORTERS OF THE PROGRAM ON CAPITOL HILL MASSACHUSETTS SEN JOHN KERRY SAID THAT HAVING THE COUNCIL LEVERAGE THIS PROCESS WILL BE TO EVERYBODY'S BENEFIT PARTICULARLY WHEN YOU HAVE THE WATCHFUL EYE OF SOMEONE WHO IS WITH THE PRESIDENT ON A DAILY BASIS YOU WILL TEND TO GET MORE ACTION THAN OTHERWISE 9302190097 930219 BUSINESS BRIEFS EXXON CORP SAID IT WAS AWARDED 18 MILLION IN ATTORNEY'S FEES RELATING TO A PATENTINFRINGEMENT CASE AGAINST LUBRIZOL CORP THE DAMAGES PORTION OF THE CASE WILL BE TRIED LATER THIS YEAR EXXON ADDED ACME ELECTRIC CORP SAID STEELCASE INC WILL MARKET AND DISTRIBUTE THE COMPANY'S BACKUP POWER SYSTEM SARA LEE CORP SAID IT ACQUIRED GILTEX HOSIERY INC A CANADIAN HOSIERY COMPANY TERMS WEREN'T DISCLOSED PACER SYSTEMS INC SAID IT WAS AWARDED A US NAVY CONTRACT FOR SUPPORT OF AMPHIBIOUSWARFARE PROGRAMS THAT IS VALUED AT AS MUCH AS 32 MILLION OVER FIVE YEARS COOPER INDUSTRIES INC SAID A 5050 JOINT VENTURE IT OWNS WITH ROLLSROYCE PLC OF LONDON RECEIVED ORDERS VALUED AT MORE THAN 120 MILLION FOR GAS TURBINES AND COMPRESSION EQUIPMENT EASTMAN KODAK CO SAID IT WILL BUILD A 26 MILLION TONER PLANT IN ENGLAND TO MEET GROWING EUROPEAN DEMAND THE PLANT SHOULD BE COMPLETED BY FALL 1994 THE COMPANY ADDED 9302190096 930219 FOREIGN EXCHANGE DOLLAR ENDS MIXED AS GROWING CONCERN OVER CLINTON PLAN ERASES EARLIER GAINS GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CAREERED HIGHER THEN SHARPLY LOWER AS THE MARKET DIGESTED THE IMPLICATIONS OF PRESIDENT CLINTON'S ECONOMIC PROGRAM LATE IN NEW YORK THE DOLLAR WAS MIXED QUOTED AT 16325 MARKS UP FROM 16253 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11925 YEN DOWN FROM 11965 YEN STERLING WAS TRADING AT 14480 UP FROM 14455 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16274 MARKS AND AT 11950 YEN THURSDAY DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK SAID IT'S BEEN A WILD DAY MR CLINTON LAID OUT HIS DEFICITREDUCTION PLAN IN A SPEECH LATE WEDNESDAY AND ASIAN MARKETS WERE THE FIRST TO REACT REASSURED THAT THE DETAILED PROGRAM SEEMED NO WORSE THAN EXPECTED THE MANY INVESTORS WHO HAD BET AGAINST THE DOLLAR BY SELLING IT SHORT BOUGHT IT BACK TO LOCK IN PROFITS DEALERS SAID BUT AS NORTH AMERICAN TRADING BEGAN DEALERS SAID SKEPTICISM SET IN ABETTED BY FALLING US STOCK PRICES AND INTEREST RATES SELLERS SWARMED ON THE DOLLAR DRIVING IT LOWER IN THE COLD LIGHT OF DAWN PEOPLE STARTED TO REALIZE THAT THOUGH THESE PLANS THAT HE'S PROPOSED ARE EXCELLENT THEY'LL BE GOOD FOR THE ECONOMY THEY STILL HAVE TO GET THROUGH CONGRESS SAID MR PETTIT FEARS THAT MR CLINTON'S PACKAGE OF TAX INCREASES AND SPENDING CUTS WOULD THROTTLE THE US ECONOMIC RECOVERY HAD PRESSURED THE DOLLAR LOWER THIS WEEK BUT THE ACTUAL PROGRAM PROVED LESS DRACONIAN THAN THE GLOOMIEST PROJECTIONS DEALERS SAID WHEN THE SPEECH CAME OUT IT WAS A LITTLE BETTER THAN EXPECTED SAID FRANK PUSATERI A VICE PRESIDENT AT BANK OF BOSTON WAVES OF BUYING DROVE THE DOLLAR HIGHER IN ASIAN AND EARLY EUROPEAN TRADING DEALERS SAID AS SUCCESSIVE TECHNICAL RESISTANCE LEVELS GAVE WAY DEALERS SAID THE BUYING INTENSIFIED BUT AFTER THE DOLLAR PASSED 165 MARKS FOR A GAIN OF THREE PFENNIS ON THE DAY DEALERS SAID PLAYERS BEGAN TO QUESTION THE STRENGTH OF THE RALLY PEOPLE JUST SORT OF GOT AHEAD OF THEMSELVES SAID JIM PHOENIX AN ASSISTANT VICE PRESIDENT AT CANADIAN IMPERIAL BANK OF COMMERCE IN NEW YORK IN ADDITION TO DOUBTS ABOUT HOW MUCH OF MR CLINTON'S AMBITIOUS VISION WOULD MAKE IT THROUGH CONGRESS INTACT DEALERS SAID CONCERNS ABOUT THE SHORTTERM EFFECT OF THE PROPOSED TAX INCREASE CAME TO UNDERMINE THE DOLLAR THE QUESTION IS WILL IT HURT WHAT MINOR RECOVERY WE'RE HAVING ASKED MR PUSATERI AS FOR CLINTON'S ECONOMIC JUMPSTART PLAN HE SAID 30 BILLION OF SPENDING IS A DROP IN THE BUCKET UNLIKELY TO ALLEVIATE THE PAIN OF TAX INCREASES AS THE MARKET TURNED SAID PETER DEMBINSKI A SENIOR DEALER AT BANK JULIUS BAER & CO IN NEW YORK THE DOLLAR CAME DOWN RATHER VIOLENTLY HE SAID THE COLLAPSE OF AN EARLY RALLY IN THE US STOCK MARKET ADDED TO THE BEARISH MOOD AFTER THE MORNING EUPHORIA TOOK THE DOW JONES INDUSTRIAL AVERAGE UP 35 POINTS A SHARP CORRECTION PULLED IT MORE THAN 45 POINTS BELOW WEDNESDAY'S CLOSING LEVEL THE INDEX CLOSED 10 POINTS DOWN AT 330219 ALSO SPOOKING DOLLAR BULLS DEALERS SAID WAS THE RALLY IN THE US TREASURY MARKET WHICH PUSHED LONGTERM INTEREST RATES SHARPLY LOWER 9302190095 930219 S&P SET TO PROVIDE RATINGS FOR CONCERNS WITH LITTLE OR NO DEBT NEW YORK STANDARD & POOR'S CORP SAID IT WILL PROVIDE CREDIT RATINGS FOR COMPANIES WITH LITTLE OR NO PUBLIC DEBT THAT HAVE USES FOR THE RATINGS OTHER THAN IN ISSUING DEBT S&P THE CREDITRATING SUBSIDIARY OF MCGRAWHILL INC WILL FORMALLY ANNOUNCE THE NEW SERVICE IN NEXT MONDAY'S EDITION OF ITS CREDITWEEK PUBLICATION MICHAEL A ZELKIND DIRECTOR OF S&P'S RATINGS DEVELOPMENT GROUP WILL BE RESPONSIBLE FOR THE NEW RATING BUSINESS HE SAYS S&P ALREADY IS IN DISCUSSIONS WITH SIX COMPANIES FOR POSSIBLE RATINGS ANALYSES MR ZELKIND SAID S&P HAD RECEIVED A SIGNIFICANT NUMBER OF INQUIRIES OVER THE LAST SIX MONTHS FROM COMPANIES ABOUT PROVIDING SUCH A SERVICE HE NOTED THAT CREDITWORTHINESS HAS BECOME SUCH A HIGHLIGHTED PART OF A COMPANY'S RELATIVE FINANCIAL STRENGTH AND THAT A RATING OFFERS AN INDEPENDENT OBJECTIVE AUGMENTATION OF THEIR CREDIT HISTORY IN NEGOTIATING WITH BANKS LESSORS AND OTHERS TRADITIONALLY LARGE AND MEDIUMSIZE COMPANIES HAVE USED CREDIT RATINGS TO GAIN ACCESS TO LOWERCOST FUNDS IN THE PUBLIC DEBT MARKET THE FEE FOR SUCH A SERVICE WOULD BE COMPARABLE TO THAT FOR A RATING ON A PUBLIC DEBT ISSUE MR ZELKIND SAID FOR A DEBT ISSUE OF 75 MILLION TO 100 MILLION THAT WOULD BE THREE BASIS POINTS TIMES THE PRINCIPAL OR 22500 TO 30000 MR ZELKIND SAID A SPOKESMAN FOR DUN & BRADSTREET CORP WHICH IS THE PARENT OF MOODY'S INVESTORS SERVICE INC SAID AS A MATTER OF POLICY MOODY'S DOESN'T COMMENT ON ITS COMPETITORS HE ADDED THAT HE DIDN'T THINK MOODY'S OR DUN & BRADSTREET HAD A SIMILAR SERVICE FOR COMPANIES WITH NO PUBLIC DEBT 9302190094 930219 US JUDGE BACKS HEALTHVEST'S CLAIMS IN DISPUTE SETTLEMENT AUSTIN TEXAS HEALTHVEST INC SAID A FEDERAL BANKRUPTCY JUDGE APPROVED 115 MILLION OF ITS CLAIMS AGAINST HEALTHCARE INTERNATIONAL INC AS PART OF A SETTLEMENT OF A LONGSTANDING DISPUTE BETWEEN THE TWO COMPANIES UNDER TERMS OF THE SETTLEMENT HEALTHVEST IMMEDIATELY RECEIVED 16 MILLION FROM HEALTHCARE IN ESCROWED FUNDS IT HAD CLAIMED IT WAS OWED AT THE SAME TIME HEALTHVEST REFUNDED HEALTHCARE ABOUT 184000 IT HAD RECEIVED SHORTLY BEFORE HEALTHCARE'S BANKRUPTCY FILING IN 1991 HEALTHCARE HAD ARGUED THAT THE MONIES CONSTITUTED A SOCALLED PREFERENCE PAYMENT MADE AT THE EXPENSE OF OTHER CREDITORS HEALTHVEST A REAL ESTATE INVESTMENT TRUST THAT OWNS SEVERAL HOSPITALS MANAGED BY HEALTHCARE ALSO SAID IT HAS FILED AN AMENDED REORGANIZATION PLAN THAT WOULD GIVE IT 100 OWNERSHIP OF THE DEBTOR THE PLAN WOULD IN TURN GIVE SUBORDINATED DEBENTURE HOLDERS 15 SHARES OF HEALTHVEST FOR EACH DEBENTURE IF APPROVED DEBENTURE HOLDERS WOULD OWN ABOUT 4 OF HEALTHVEST TRADE CREDITORS WOULD RECEIVE AROUND 1 MILLION IN CASH HEALTHVEST SAID ITS PLAN HAS ALREADY WON SUPPORT OF THE UNSECURED CREDITORS COMMITTEE AND THE TRUSTEE FOR THE SUBORDINATED DEBENTURES AS WELL AS HEALTHVEST'S LENDERS BUT JOSEPH MARTINEC AN ATTORNEY FOR HEALTHCARE SAID HE EXPECTS THE INTERNAL REVENUE SERVICE WHICH HAS ABOUT 28 MILLION IN CLAIMS TO OPPOSE HEALTHVEST'S PLAN AND PREDICTED HEALTHCARE'S COMPETING PLAN WILL BE CONFIRMED INSTEAD WE THINK THE IDEA OF MERGING A FINANCIALLY AILING COMPANY WITH A CHAPTER 11 COMPANY ISN'T A MARRIAGE MADE IN HEAVEN HE SAID IF HEALTHVEST DOESN'T CONFIRM ITS PLAN HEALTHCARE RETAINS THE RIGHT TO REFILE AN ADVERSARY PROCEEDING SEEKING TO SUBORDINATE HEALTHVEST'S CLAIMS TO THOSE OF OTHER CREDITORS 9302190093 930219 INTERNATIONAL GLAXO POSTS STRONG 1STHALF RESULTS DENIES STRATEGY SHIFT IS CONTEMPLATED BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON GLAXO HOLDINGS PLC REPORTED SURPRISINGLY BUOYANT FIRSTHALF PRETAX PROFIT AT THE SAME TIME SENIOR MANAGEMENT AT THE BIG BRITISH DRUG COMPANY EMPHATICALLY DENIED THAT ANY SUDDEN SHIFT IN STRATEGY IS BEING CONTEMPLATED GLAXO STOCK JUMPED 22 PENCE OR MORE THAN 3 TO 684 PENCE ON THE NEWS IN RECENT WEEKS THE SHARES HAVE SEESAWED IN LONDON STOCK EXCHANGE TRADING AMID SPECULATION THAT MANAGEMENT WAS PLANNING A HUGE SHARE OFFERING IN ORDER TO BUY A US PHARMACEUTICAL COMPANY STRONG IN OVERTHECOUNTER PRODUCTS IN MEETINGS WITH ANALYSTS AND THE MEDIA YESTERDAY CHIEF EXECUTIVE OFFICER ERNEST MARIO STOPPED SHORT OF DENYING SUCH SPECULATION OUTRIGHT BUT DR MARIO INSISTED GLAXO'S BUDDING INTEREST IN NONPRESCRIPTION MEDICINES DOESN'T MEAN WE WOULD NECESSARILY PURCHASE OTC PRODUCTS FROM ANOTHER COMPANY OR PURCHASE ANOTHER COMPANY FOR THEIR OTC PRODUCTS JUST TO INCREASE OUR TURNOVER THAT WOULD BE A CHANGE IN THE POLICY AND DIRECTION OF THIS COMPANY AND I ASSURE YOU THERE HAS BEEN NO CHANGE APPREHENSION ABOUT THE COMPANY'S PROSPECTS ALSO WAS ALLAYED BY ROBUST 16 INCREASES IN BOTH PRETAX PROFIT AND SALES DURING THE SIX MONTHS ENDED DEC 31 GLAXO SAID FIRSTHALF PRETAX PROFIT SPURTED 16 TO 819 MILLION FROM 709 MILLION A YEAR EARLIER SALES CLIMBED TO 2296 BILLION FROM 1976 BILLION THE PREVIOUS YEAR THE COMPANY SAID GLAXO AGAIN EXCELLED IN ONE OF THE MOST CLOSELY WATCHED BAROMETERS OF A DRUG COMPANY'S HEALTH VOLUME GROWTH WHICH ACCOUNTED FOR 12 PERCENTAGE POINTS OF THE FIRSTHALF SALES GAIN MEANWHILE PRICE INCREASES WHICH ARE INCREASINGLY DIFFICULT TO COME BY AMID INTENSIFYING PRESSURE TO CONTAIN HEALTHCARE COSTS PROVIDED A SINGLE PERCENTAGE POINT TO THE RISE OF GLAXO'S FIRSTHALF SALES FOREIGN EXCHANGE MOVEMENTS MAINLY FLUCTUATIONS AMONG VOLATILE EUROPEAN CURRENCIES ADDED THE REMAINING THREE POINTS BURGEONING DEMAND FOR GLAXO'S FLAGSHIP ULCER DRUG ZANTAC WAS THE DRIVING FORCE IN THE FIRSTHALF SALES INCREASE MEASURED IN CONSTANT EXCHANGE RATES ZANTAC SALES CLIMBED 14 IN THE PERIOD TO 103 BILLION A FULL 45 OF GLAXO'S TOTAL SALES ZANTAC SALES IN THE US ROSE 14 MARGINALLY FASTER THAN THE 12 INCREASE IN EUROPE THAT ROBUST US SHOWING REFLECTED AN EXTRA MARKETING PUSH THE DRUG RECEIVED FROM 600 SALES REPRESENTATIVES ORIGINALLY HIRED TO MARKET A NEW MIGRAINE DRUG BUT SWITCHED TO ZANTAC WHEN REGULATORY APPROVAL OF THE NEW PRODUCT WAS DELAYED BY SEVERAL MONTHS ZANTAC WILL LOSE THAT EXTRA BACKING WHEN THE NEW MIGRAINE DRUG IS INTRODUCED IN THE US NEXT MONTH THE MOST SUCCESSFUL NEW PRODUCT TO DATE IS ZOFRAN A DRUG USED AGAINST NAUSEA CAUSED BY CHEMOTHERAPY ZOFRAN FIRSTHALF SALES SURGED 35 TO 163 MILLION FROM 120 MILLION A YEAR EARLIER BOTH MIGRAINE DRUG IMIGRAN AND ASTHMA TREATMENT SEREVENT NOW CONSIDERABLY LAG BEHIND MOST ANALYSTS' ORIGINAL SALES PROJECTIONS BUT DR MARIO BRISTLES AT CRITICISM OF THE DRUGS' PERFORMANCE TO DATE THE DISAPPOINTMENT IS THAT WE DIDN'T GET THEM REGISTERED AS FAST AS WE THOUGHT WE WOULD HE SAID THERE'S NO DISAPPOINTMENT IN WHAT THEY'RE DOING ONCE THEY'RE INTRODUCED IN MARKETS 9302190092 930219 CHIEF EXECUTIVES WEIGH IN ON CLINTON PROGRAM A WALL STREET JOURNAL NEWS ROUNDUP WHEN THE NATION'S CHIEF EXECUTIVE PUTS FORTH HIS PLANS ABOUT THE COUNTRY'S ECONOMIC FUTURE LESSER CHIEF EXECUTIVES TAKE NOTE AND SPEAK UP WALL STREET JOURNAL REPORTERS INTERVIEWED THE CHIEF EXECUTIVES OF LARGE AND SMALL COMPANIES AND FOUND REACTIONS TO PRESIDENT CLINTON'S ECONOMIC PLAN THAT RANGED FROM DELIGHT TO DISMAY DISASTER SAYS ONE COURAGEOUS SAYS ANOTHER A SAMPLING OF OPINIONS FOLLOWS MR JOHNSON ONE OF THE FIRST TOP REPUBLICAN EXECUTIVES TO PUBLICLY ENDORSE MR CLINTON DURING THE CAMPAIGN SAYS HE WAS VERY PLEASED WITH THE PRESIDENT'S SPEECH IT WENT A LONG WAY TOWARD CONVINCING PEOPLE THAT HE WAS GOING TO ASK FOR SACRIFICES BUT IT WAS GOING TO BE WORTHWHILE BECAUSE THE MONEY WAS GOING TO BE EFFECTIVELY SPENT SAYS THE EXECUTIVE OF THE IRVINE CALIF MAKER OF COMPUTER DISK DRIVE PRODUCTS BUT MR JOHNSON CAUTIONS THAT THE AMERICAN PEOPLE ARE GOING TO HAVE A TOUGH JOB IN THE COMING MONTHS THEY'RE GOING TO HAVE TO LAND ON THEIR CONGRESSMEN VERY HARD TO MAKE SURE THAT THEY OPERATE ACCORDING TO THE SPIRIT OF WHAT THE PRESIDENT ASKED FOR A MAJOR CHANGE A SHARED SACRIFICE AND NOT OPERATE IN THE TRADITIONAL PARTISAN FASHION OF NARROW INTERESTS PULLING THINGS APART MR JOHNSON WHO WAS AMONG A GROUP OF EXECUTIVES INVITED TO REVIEW THE ECONOMIC PLAN IN WASHINGTON LAST WEEK SAYS IT WAS CLEAR TO ME THAT I'M GOING TO BE ONE OF THE MAJOR CONTRIBUTORS TO THE NEW TAX PLAN BUT I'M STILL SUPPORTING IT BEYOND ALL THE NUMBERS WHAT I BELIEVE IS HAPPENING IS THE PRESIDENT IS ASKING THE NATION TO CHANGE ITS ATTITUDE FROM THE TIME WHEN WE CONSUMED EVERYTHING TO GO BACK TO THE TIME WHEN WE BELIEVED WE ALWAYS HAD TO SAVE SOMETHING AND INVEST IN THE FUTURE SOMEWHERE WE LOST TRACK OF THAT HE CALLS THE CLINTON PLAN A CULTURAL CHANGE BUT ONE THAT PEOPLE ARE READY FOR NOW WE'RE GOING TO HAVE TO SEE IF THE POLITICAL STRUCTURE HAS THE TENACITY AND BACKBONE I IDENTIFY VERY MUCH WITH THE OBJECTIVES AND THINK THERE ARE GOOD MOVES HERE SAYS MR ROSSOTI ARLINGTON VA BUT I'M NOT CONVINCED IT WILL SOLVE THE FEDERAL BUDGET PROBLEM AS MUCH AS WE NEED TO I'M NOT SURE THE SPENDING RESTRAINTS ARE ENOUGH I DON'T HAVE A PROBLEM WITH PAYING THE EXTRA TAXES BUT I'M NOT SURE THEY WILL SOLVE THE BUDGET PROBLEM MR BAXTER A LOS ANGELES BROKERAGE HOUSE HOLDING COMPANY EXECUTIVE CRITICIZES PRESIDENT CLINTON'S PROPOSED TAX AND INFRASTRUCTURE SPENDING INCREASES RAISING TAXES IS ALWAYS A DISASTER AND WHEN THE GOVERNMENT INVESTS IN NEW PROJECTS THEY ALWAYS PICK THE WRONG PROJECTS AND SPEND TOO MUCH MONEY ON THEM SAYS MR BAXTER I WOULD CALL THE PLAN THE ENTREPRENEURS' ENDANGERMENT ACT WE'RE THE ONLY ECONOMY THAT'S GOING MORE STATIST WHILE THE REST OF THE WORLD IS GOING MORE MARKETORIENTED IF THE CLINTON ADMINISTRATION IS REALLY COMMITTED TO INCREASING JOBS THEY SHOULD GET MORE MONEY INTO THE PRIVATE SECTOR INSTEAD OF THE PUBLIC SECTOR IT WAS A BOLD ACTION AND IT WAS TIMELY ACTION BECAUSE IT IS ABSOLUTELY NECESSARY THAT WE TAKE ACTION AGAINST THE DEFICIT AND NATIONAL DEBT SAYS MR DAREHSHORI WITHOUT RESOLVING THOSE TWO THINGS WE WILL NOT BE ABLE TO SURVIVE IT MAKES IMMENSE SENSE I THINK IT'S FAIR IF ANYTHING I'D LIKE TO HAVE SEEN MORE GASOLINE TAX BUT IT'S A GOOD PLAN IT WILL AFFECT ME AND MY FRIENDS AND MY COMPANY HOUGHTON MIFFLIN WILL HAVE TO PAY MORE ON TRAVEL AND ENTERTAINMENT AND MORE TAXES WE'VE ALREADY LOOKED INTO THAT BUT WE LOOK AT IT THIS WAY THE BIGGEST PROBLEM WE HAVE IS OUR DEFICIT AND OUR NATIONAL DEBT IF INDIVIDUALS ARE GOING TO PAY COMPANIES SHOULD HAVE TO PAY EVERYBODY HAS TO CONTRIBUTE THAT'S THE ONLY WAY I'M HAPPY TO PAY A LITTLE MORE IN PERSONAL AND CORPORATE INCOME TAXES IF WE USE IT TO HELP PEOPLE AND IMPROVE PEOPLE'S QUALITY OF LIFE AND MEET BASIC HUMAN NEEDS SAYS MR COHEN WHOSE ICECREAM COMPANY IS BASED IN WATERBURY VT I'M NOT CONCERNED ABOUT HOW MUCH WE PAY I'M CONCERNED WHAT WE USE IT FOR THE THING THAT'S BEEN DRIVING ME CRAZY ABOUT CORPORATE INCOME TAXES IS THAT WE'VE BEEN PAYING HUNDREDS OF THOUSANDS OR MILLIONS A YEAR FOR BUILDING BOMBS AND WEAPONS THAT WE NO LONGER NEED AND THAT ARE DESIGNED TO KILL MILLIONS OF PEOPLE I THINK THERE'S NO QUESTION THAT INVESTING IN BASIC HUMAN NEEDS BY TAXING CORPORATIONS AND PEOPLE IN UPPER INCOME BRACKETS IS THE ONLY CHOICE THIS IS THE MOST FISCALLY SOUND POLICY I'VE EVER HEARD PROPOSED BY A PRESIDENT THE ONE AREA HE COULD GO FURTHER IS TO CUT THE MILITARY BUDGET DEEPER I THOUGHT THE REPUBLICAN RESPONSE WAS ABSURD MORE OF THE SAME REHASHED TRICKLEDOWN ECONOMICS I WISH MR CLINTON WELL BUT THIS ECONOMIC PROGRAM IS A DISASTER FOR US ON THE BACK OF THE ENVELOPE WE ANTICIPATE THE TAX WILL COST US MORE THAN 50 MILLION A YEAR SAYS MR CAPPS HEAD OF THE RICHMOND VA PARENT COMPANY OF VIRGINIA ELECTRIC & POWER CO WE ANTICIPATE THAT WE WILL PASS THAT ON TO CUSTOMERS BUT WE WILL HAVE TO MAKE THAT PART OF A RATE INCREASE FILING BUT THE REAL PROBLEM WITH THIS ENERGY TAX IS THAT IT MAY MAKE US INDUSTRY LESS COMPETITIVE PARTICULARLY ELECTRICITYINTENSIVE BUSINESSES LIKE ALUMINUM PROCESSING IF ELECTRICITY BECOMES TOO EXPENSIVE HERE PEOPLE WILL BEGIN MOVING PLANTS OUT OF THE COUNTRY WHICH IS SOMETHING WE DEFINITELY DON'T WANT TO SEE AS FOR THE REMAINDER OF HIS PROGRAM I DON'T FEEL TOO GOOD ABOUT SENDING MORE MONEY UP TO WASHINGTON THEY JUST DON'T SPEND THEIR MONEY VERY WISELY THESE NEW TAXES ESPECIALLY THE ENERGY TAX ARE THE WRONG WAY TO GO IF WE LEARNED ANYTHING IN THE 1980S IT IS THAT TAXING SOMETHING DISCOURAGES IT AND I DON'T THINK WE WANT TO DISCOURAGE ENERGY PRODUCTION I THINK THAT WE HAVE TO LOOK AT PRESIDENT CLINTON'S PACKAGE AS A WHOLE LOOKING NOT JUST AT THE SHORT TERM BUT AT THE LONG TERM AS WELL SAYS MR HECHINGER HEAD OF A HOMEIMPROVEMENT CHAIN BASED IN LANDOVER MD AND THE LONGTERM ASPECTS OF HIS PACKAGE ARE VERY IMPORTANT TO OUR BUSINESS BECAUSE WE NEED TO SEE A SIGNIFICANT REDUCTION IN THE DEFICIT WITHOUT A LOWER DEFICIT IT WILL BE MORE DIFFICULT TO KEEP INTEREST RATES LOW WHICH WOULD HURT NEWHOME PURCHASES AND BUILDING LOWER INTEREST RATES WOULD MOTIVATE PEOPLE TO BUY AND SELL HOMES BUT THAT WON'T HAPPEN UNLESS PRESIDENT CLINTON FOLLOWS THROUGH ON HIS DEFICITREDUCTION PLANS IN THE SHORT TERM OUR CONSUMERS WILL PROBABLY HAVE TO SIT BACK AND FIGURE OUT WHAT THEIR DISPOSABLE INCOME WILL BE AFTER THE NEW TAXES BUT THE ENERGY TAX COULD HELP OUR BUSINESS DURING THE 1970S ENERGY CRUNCH WE FOUND PEOPLE HIGHLY MOTIVATED TO BUY MATERIALS THAT WOULD MAKE HOMES ENERGYEFFICIENT SUCH AS WEATHERSTRIPPING INSULATION AND OTHER PRODUCTS AND WE WILL ALSO NEED TO REEMPHASIZE OUR EFFORTS TO MAKE OUR OWN LARGE WAREHOUSE STORES MORE ENERGYEFFICIENT THE HIGHER CORPORATE RATE WILL AFFECT OUR BOTTOM LINE BUT THAT'S GOING TO HAPPEN TO EVERYONE SO THERE'S NO COMPETITIVE DISADVANTAGE OF COURSE AS WE INCREASE EARNINGS WE WILL BE ABLE TO DO MORE TO REDUCE THE DEFICIT IT WAS A VERY COURAGEOUS SPEECH ANY PRESIDENT WHO COMES IN IN HIS FIRST MONTH AND CALLS FOR INCREASES IN TAXES IS COURAGEOUS SAYS MR MARCUS HEAD OF THE ATLANTABASED HOMECENTER RETAILER BUT I WAS VERY DISAPPOINTED THAT HE DIDN'T CALL FOR A LINEITEM VETO THAT WOULD HAVE BEEN MORE COURAGEOUS IT'S NOT THE PRESIDENT THAT CONTROLS SPENDING IT'S CONGRESS A LINEITEM VETO WOULD HAVE BEEN A RESTRAINT ON THE CONGRESS WHY HE DIDN'T DO IT I HAVE NO IDEA INCREASED REVENUE FOR CONGRESS IS LIKE GIVING ICE CREAM TO A LOAD OF KIDS I DIDN'T SEE ANYTHING THAT WAS GOING TO STIMULATE BUSINESS LOTS OF SMALL BUSINESSES DON'T REALLY NEED AN INVESTMENT TAX CREDIT LOOK AT THE GUY WHO'S RUNNING ONE RESTAURANT HE'S JUST GOING TO SEE HIS COSTS GO UP UNDER THE PLAN MY MAJOR CONCERN IS THE UNIVERSAL MEDICAL PLAN WHICH WE NEED BUT PRESIDENT CLINTON NEVER TALKED ABOUT HOW WE'RE GOING TO PAY FOR IT IF WE'RE GOING TO HAVE THE KIND OF TAX INCREASES THAT HE DISCUSSED LAST NIGHT PLUS TRYING TO PAY FOR UNIVERSAL HEALTH CARE WE'VE BOUGHT INTO A VERY SERIOUS MATTER HE'S FOCUSED ON THE DISADVANTAGED BUT I WOULD HAVE LIKED TO SEE HIM DO MORE TO STIMULATE THE ECONOMY TO BE HONEST WITH YOU I THOUGHT IT WOULD BE WORSE THAN IT CAME OUT SAYS MR BENSON WHOSE ROCHESTER NH COMPANY MAKES EQUIPMENT FOR COMPUTER LOCALAREA NETWORKS I THINK HE SHOULD HAVE GONE FOR MORE TAXES PERSONALLY I DON'T LIKE TAXES BUT IT WOULD BE OK TO GO FOR MORE AND TIE IT INTO DEFICIT REDUCTION DOLLAR FOR DOLLAR BUT IF THE DEFICIT GOES UP EVEN THOUGH HE RAISED MY TAXES I'LL BE GOOD AND MAD I DON'T WANT TO HEAR ANY MORE EXCUSES MR BENSON SAYS HE DOESN'T MIND THE PROPOSED LIMITATIONS ON DEDUCTIONS FOR BUSINESS MEAL AND ENTERTAINMENT EXPENSES IT WON'T BE A MAJOR DEAL FOR US IT'S DAMN NEAR IMPOSSIBLE TO GET A 100 LUNCH IN ROCHESTER WE DO HAVE A BIG OFFICE IN NEW YORK BUT THOSE BOYS KNOW I DON'T PUT UP WITH 100 LUNCHES THERE EITHER BUT MR BENSON CRITICIZES CLINTON INITIATIVES THAT HE THINKS WOULD CREATE TWO CLASSES OF BUSINESSES SUCH AS THE RECENTLY PASSED FAMILYLEAVE BILL AN INVESTMENT TAX CREDIT MORE BENEFICIAL TO SMALL THAN LARGE COMPANIES AND A HIGHER TAX RATE ON PROFITS OVER 10 MILLION HE'S STARTING TO CHANGE THE LEVEL PLAYING FIELD I'M NO FORTUNE TELLER BUT I'M NOT SURE SMALL BUSINESS WILL CONTINUE TO BE THE ENGINE FOR THE ECONOMY THAT IT WAS IN THE '80S 9302190091 930219 SMALL BUSINESSES FIND MORE REASONS TO CROW THAN TO CARP AT THIS POINT BY EUGENE CARLSON AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE ECONOMIC PROGRAM THAT PRESIDENT CLINTON ANNOUNCED WEDNESDAY NIGHT HAS SOME SMALLBUSINESS OWNERS ALREADY CONTEMPLATING PLANS TO EXPAND AND HIRE BUT IT LEFT OTHERS HOLDING BACK AND PROMPTED AT LEAST ONE TO CUT SPENDING THE GOOD NEWS IS THAT HE'S SAYING HE'S COMMITTED TO REDUCING THE DEFICIT A HIGH PRIORITY FOR BUSINESS OWNERS SAYS JOHN VANDERPLOEG PRESIDENT OF SHIP PAC INC KALAMAZOO MICH A FAMILYOWNED MAKER OF INDUSTRIAL PACKAGING MATERIAL BUT AFTER HUDDLING WITH HIS MANAGEMENT TEAM YESTERDAY MORNING MR VANDERPLOEG SAYS HIS COMPANY IS CUTTING BACK ON SOME PLANNED 1993 SPENDING BECAUSE OF CONCERN THAT MR CLINTON'S PROPOSED ENERGY AND INCOME TAX INCREASES COULD HURT THE ECONOMY WE WANT TO BE VERY VERY CAREFUL ABOUT THE EXPANSION OF OUR NEW BUSINESS HE SAYS IN HIS SPEECH TO CONGRESS OUTLINING HIS ECONOMIC PROGRAM PRESIDENT CLINTON GAVE SPECIAL ATTENTION TO WHAT HE CALLED BOLD INCENTIVES FOR SMALL COMPANIES BECAUSE SMALL BUSINESS HAS CREATED SUCH A HIGH PERCENTAGE OF ALL THE NEW JOBS IN OUR NATION OVER THE LAST 10 OR 15 YEARS MANY OWNERS PRAISED HIS CALL FOR A PERMANENT INVESTMENT TAX CREDIT FOR COMPANIES WITH ANNUAL SALES UNDER 5 MILLION LIMITED CAPITALGAINS TAX RELIEF FOR SMALLBUSINESS INVESTORS AND A 30 BILLION INFUSION FOR INFRASTRUCTURE PROJECTS IF AN INVESTMENT CREDIT IS APPROVED BY CONGRESS I'LL LOOK INTO ACQUIRING A STORE VERY SERIOUSLY SAYS EUGENE WIGGLESWORTH A MIDAS MUFFLER FRANCHISEE IN VANCOUVER WASH MR WIGGLESWORTH ALREADY HAS EIGHT MIDAS SHOPS IN WASHINGTON AND OREGON WITH COMBINED ANNUAL SALES OF ABOUT 3 MILLION IF I ADD A STORE IT MEANS HIRING TWO TO FOUR REPAIR PEOPLE AND MAYBE AN OFFICE MANAGER WE'RE NOT IBM OR GM BUT THAT'S SMALL BUSINESS IT COULD MEAN FOUR OR FIVE NEW JOBS IN AUSTIN TEXAS ROSE PACE PRESIDENT OF PACE TRAVEL INC SAYS THAT IF AN INVESTMENT TAX CREDIT GOES THROUGH CONGRESS I'D PROBABLY BUY SOME ADDED EQUIPMENT COMPUTERS COPY MACHINES JAMES ZIAJA CHIEF OPERATING OFFICER OF ACS COMUNICATIONS INC ANOTHER AUSTIN COMPANY SAYS THE INVESTMENT TAX CREDIT WOULD EASE THE EXPENSE OF NEW COMPUTERS INCLUDING ELECTRONIC NOTEBOOKS FOR THE FIRM'S SALES FORCE YOU NEVER OUTGROW THE NEED FOR MORE PCS HE SAYS STEPHANIE HARKNESS PRESIDENT OF PACIFIC PLASTICS & ENGINEERING SANTA CRUZ CALIF SAYS AN INVESTMENT TAX CREDIT WOULD ALLOW HER COMPANY TO BE A MUCH MORE AGGRESSIVE EQUIPMENT PURCHASER IF THE PROPOSED TAX CREDIT COVERS REAL ESTATE IT WOULD SPUR US TO BUY A BUILDING SOONER THAN WE HAD TARGETED SHE ALSO SAYS THAT IF ONE OF THE ENTERPRISE ZONES PROPOSED BY MR CLINTON WERE LOCATED IN HER COUNTY SHE WOULD LOOK CAREFULLY AT LOCATING THERE FOR THE CREDITS THAT WOULD BE POSSIBLE MR CLINTON SAID HE WANTS TO ESTABLISH 50 SUCH ZONES WHICH ARE TYPICALLY LOCATED IN AREAS OF LOW INCOME AND HIGH UNEMPLOYMENT COMPANIES THAT LOCATE IN ZONES GET TAX BREAKS IN RETURN FOR CREATING JOBS MR WRIGHT SAYS HE WANTS TO HIRE AS MANY AS 25 PEOPLE WHEN HIS BUSINESS RMBTV OFFICIALLY STARTS UP IN SEPTEMBER SO THAT HE CAN GIVE SOMETHING BACK TO THE BLACK COMMUNITY SMALL BUSINESS IS THE BACKBONE OF AMERICA HE SAYS AN INVESTMENT TAX CREDIT WILL GIVE ME THE OPPORTUNITY TO CREATE MORE JOBS KARL KRIEGER PRESIDENT OF PITTSBURGHBASED TRANSTECH INC A RAIL AND TRANSIT PARTS MANUFACTURER CALLS MR CLINTON'S PLANS TO BOOST INFRASTRUCTURE SPENDING INCLUDING MASS TRANSIT A VERY DEFINITE PLUS FOR HIS COMPANY ONE OF TRANSTECH'S TWO UNITS MAKES ELECTRIC EQUIPMENT FOR RAPID TRANSIT CARS AND RAILROADS RONNIE WRIGHT WHO IS BLACK AND WHO HAS BEEN WORKING FOR SEVERAL YEARS TO START A MUSIC CABLE NETWORK IN ATLANTA SAYS HE IS EXCITED ABOUT THE PROSPECTS OF AN INVESTMENT TAX CREDIT MINORITYOWNED FIRMS HAVE FOUND IT PARTICULARLY TOUGH TO GET CREDIT TO EXPAND THEIR OPERATIONS OR BUY EQUIPMENT BUT MR CLINTON'S PROPOSAL FOR AN ENERGY TAX WOULD BE A MIXED BLESSING THE RISE IN RETAIL GASOLINE PRICES STEMMING FROM THE TAX AN ESTIMATED 75 CENTS A GALLON BY 1996 WOULD PROBABLY BOOST MASS TRANSIT RIDERSHIP MR KRIEGER THINKS BUT LIKE MANY OTHER OWNERS HE WORRIES ABOUT HIS OWN COMPANY'S HIGHER ENERGY COSTS SHOULD THE TAX GO THROUGH IT WOULD MAKE IT TOUGH TO FINANCE NEW EQUIPMENT EVEN WITH THE PROPOSED INVESTMENT TAX CREDIT HE SAYS MS PACE THE TEXAS TRAVEL AGENT WORRIES THAT AN ENERGY TAX WILL INCREASE THE COST OF JET FUEL AND THERE GO AIR FARES AND THAT ALWAYS SLOWS DOWN TRAVEL THAT PUTS A DAMPER ON HER SHORTTERM OUTLOOK I'M NOT GOING TO RUSH OUT AND HIRE A BUNCH OF PEOPLE SHE SAYS MR VANDERPLOEG OF SHIP PAC SAYS HIS WORRY IS THAT PRESIDENT CLINTON'S PROPOSED TAX INCREASES ON BUSINESS WOULD HAVE A DAMPING EFFECT ON SMALL BUSINESSES WHILE I DESPERATELY WANT HIM TO SUCCEED HE SAYS IT SOUNDED LIKE WITH HIGHER TAXES HE'S PENALIZING THOSE WHO'VE CREATED JOBS TO SPEND ON THINGS LIKE TEMPORARY JOBS PROGRAMS THAT WON'T HAVE A LONGTERM EFFECT ROGER HANNAY PRESIDENT OF HANNAY REELS IN WESTERLO NY WHICH MAKES INDUSTRIAL CABLES SAYS ANY INCREASED TAXES WILL BE PASSED ON TO OUR CUSTOMERS AND ULTIMATELY TO CONSUMERS IT'LL RAISE OUR COST OF DOING BUSINESS RUTH STAFFORD CORPORATE TREASURER FOR KIVA CONTAINER CORP OF PHOENIX SAYS THAT AS A RESULT OF POSSIBLE NEW TAXES AND THE FACT THAT HER COMPANY WON'T QUALIFY FOR THE INVESTMENT TAX CREDIT HER COMPANY WILL CONTINUE TO DELAY THE PURCHASE OF NEW BOXMAKING EQUIPMENT THAT WOULD COST BETWEEN 500000 AND 15 MILLION BUT JACK RENNIE PRESIDENT OF PACER SYSTEMS INC IN BILLERICA MASS SAYS THE PROPOSED BOOST IN CORPORATE TAXES ISN'T AS BAD AS THE INCREASE IN PAYROLL TAXES THAT CAME DURING THE 1980S THE PROBLEM IS WITH PAYROLL TAXES YOU PAY WHETHER YOU'RE MAKING MONEY OR NOT SO IF YOU LOOK AT THE ORDER OF THINGS MOST COMPANIES WOULD RATHER HAVE AN INCOME TAX SURCHARGE THAN A PAYROLL TAX MEANWHILE WASHINGTON RESTAURANT OWNER MO SUSSMAN WHO CATERS ALMOST EXCLUSIVELY TO AN EXPENSEACCOUNT TRADE IS LIVID ABOUT MR CLINTON'S PLAN TO CUT THE DEDUCTIONS FOR BUSINESS MEALS AND ENTERTAINMENT TO 50 FROM 80 IT'S A DEATH KNELL TO ME HE SAYS CLINTON SAID SMALL BUSINESS WAS THE ENGINE THAT TURNS THE ECONOMY AND THE FIRST THING HE DOES IS GO AFTER AN EASY TARGET THE HOSPITALITY RESTAURANT FIELD MR SUSSMAN ADDS I HAVE A BUSINESS THAT PURCHASES MEAT BREAD VEGETABLES FISH ALCOHOL ADVERTISING AND LEGAL AND ACCOUNTING SERVICES IF I LOSE BUSINESS BECAUSE PEOPLE CUT BACK ON MEALS THEY'LL GAIN SOME TAX REVENUE BUT HOW MUCH WILL THEY LOSE LUCINDA HARPER CONTRIBUTED TO THIS ARTICLE 9302190090 930219 REVIEW & OUTLOOK EDITORIAL HATCH NOT HACKS ONE OF PRESIDENT CLINTON'S FEW REAL SPENDING CUTS IS HIS PLEDGE TO REDUCE THE FEDERAL WORK FORCE THROUGH ATTRITION BY 100000 OVER FOUR YEARS BUT HE IS UNLIKELY TO ACCOMPLISH THAT IF HE GOES ALONG WITH AN EFFORT BY CONGRESS TO DESTROY THE HATCH ACT WHICH LIMITS THE POLITICAL ACTIVITY OF FEDERAL WORKERS SUCH A MOVE WOULD DRAMATICALLY INCREASE THE POWER OF PUBLIC EMPLOYEE UNIONS AND MAKE IT LESS LIKELY THAT CONGRESS WOULD EVER VOTE TO STREAMLINE OR REFORM THE BUREAUCRACY THE HATCH ACT NAMED AFTER DEMOCRATIC SENATOR CARL HATCH OF NEW MEXICO WAS PASSED IN 1939 TO TIGHTEN LONGSTANDING PROTECTIONS AGAINST A POLITICIZED FEDERAL WORK FORCE A PULITZER PRIZEWINNING SERIES HAD DOCUMENTED HOW NEW DEAL WORKERS IN KENTUCKY AND OTHER STATES HAD BEEN COERCED INTO SUPPORTING POLITICAL INCUMBENTS SINCE ITS ENACTMENT HATCH HAS BEEN CHALLENGED THREE TIMES BEFORE THE SUPREME COURT ON THE GROUNDS IT INFRINGES ON THE RIGHTS OF WORKERS EACH TIME IT HAS BEEN UPHELD IN 1973 JUSTICE BYRON WHITE THE ONLY DEMOCRATIC APPOINTEE NOW ON THE COURT WROTE IN AN OPINION THAT IT IS IN THE BEST INTEREST OF THE COUNTRY INDEED ESSENTIAL THAT THE POLITICAL INFLUENCE OF FEDERAL EMPLOYEES ON OTHERS AND ON THE POLITICAL PROCESS SHOULD BE LIMITED FRUSTRATED BY THE COURTS FEDERAL EMPLOYEE UNIONS HAVE TIME AND AGAIN TRIED TO MODIFY THE HATCH ACT JOE VACCA THE PRESIDENT OF THE NATIONAL ASSOCIATION OF LETTER CARRIERS HAS SAID THAT FEDERAL EMPLOYEES WILL NEVER WIN THE RIGHT TO STRIKE UNTIL HATCH IS CHANGED IN 1975 PRESIDENT FORD VETOED A HATCH ACT REPEAL IN 1990 PRESIDENT BUSH DID THE SAME THING AND THE SENATE NARROWLY UPHELD HIS VETO LAST YEAR BILL CLINTON SAID HE WOULD SUPPORT SOME CHANGES IN THE HATCH ACT BUT STOPPED SHORT OF CALLING FOR ITS REPEAL PUBLIC EMPLOYEE UNIONS ARE BETTING HE WILL BE UNWILLING TO VETO WHATEVER BILL PASSES CONGRESS A BILL TO GUT THE HATCH ACT IS MOVING THROUGH CONGRESS AT WARP SPEED AND HAS ALREADY BEEN VOTED OUT OF COMMITTEE IT MAY REACH THE HOUSE FLOOR AS EARLY AS NEXT TUESDAY IRONICALLY THERE IS PRECIOUS LITTLE EVIDENCE THAT FEDERAL WORKERS THEMSELVES WANT CHANGES IN THE HATCH ACT A 1989 SURVEY OF FEDERAL EMPLOYEES BY THE MERIT SYSTEMS PROTECTION BOARD FOUND THAT ONLY 32 WANTED THE ACT WEAKENED THERE ARE SOUND REASONS FOR THIS ATTITUDE WHEN A CIVIL SERVANT SAYS I'M HATCHED' HE IS NOT COMPLAINING SAYS HISTORIAN MARJORIE FRIBOURG HE IS PROTECTING HIMSELF FROM POLITICAL ARMTWISTING INDEED ONE FEDERAL EMPLOYEE UNION OFFICIAL GROUSED IN 1990 THAT SOME FEDERAL EMPLOYEES REALLY HIDE BEHIND THE HATCH ACT AS A WAY TO GET OUT OF PARTICIPATING IN POLITICS GROUPS SUCH AS COMMON CAUSE OPPOSE CURBING THE HATCH ACT BECAUSE THEY RECOGNIZE IT IS THE ONLY WAY TO AVOID TURNING FEDERAL UNIONS INTO FULLFLEDGED PARTISAN POLITICAL MACHINES THREE UNION PRESIDENTS WERE SUSPENDED FROM THEIR FEDERAL JOBS FOR 60 DAYS UNDER HATCH FOR OPENLY BACKING WALTER MONDALE IN 1984 THIS COUNTRY REPLACED THE SPOILS SYSTEM WITH A CIVIL SERVICE MORE THAN 100 YEARS AGO THAT SYSTEM CERTAINLY HAS ITS PROBLEMS BUT AT LEAST ITS EMPLOYEES DON'T OPENLY PLAY POLITICS BILL CLINTON WOULD BE FOOLISH TO ALLOW THE CIVIL SERVICE TO BECOME A GIANT LOBBY FOR ITS OWN SELFINTEREST BUT SHOULD HE CAVE IN AND SIGN A BILL GUTTING THE HATCH ACT HE SHOULD HAVE THE HONESTY TO RENAME IT THE HACK ACT BECAUSE THAT IS THE DIRECTION A POLITICIZED CIVIL SERVICE WILL INEVITABLY TAKE 9302190089 930219 CLINTON'S ECONOMIC PACKAGE EXECUTIVES MAY ESCAPE ATTACK ON PAY IF COMPENSATION IS TIED TO PERFORMANCE BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLY PAID EXECUTIVES HAVE LITTLE TO FEAR FROM PRESIDENT CLINTON'S SEEMINGLY BOLD ATTACK ON THEIR FAT PAY PACKAGES WHY BECAUSE A BIG LOOPHOLE IN THE PROPOSAL COULD LET MOST OF THE EXECUTIVES ESCAPE THE PRESIDENT WANTS TO DROP CORPORATE TAX DEDUCTIONS ON EXECUTIVE COMPENSATION OVER 1 MILLION BUT THERE'S A LITTLENOTICED CATCH COMPANIES COULD KEEP THEIR DEDUCTIONS AS LONG AS THEY LINK EXECUTIVES' PAY TO PERFORMANCE ACCORDING TO PEOPLE FAMILIAR WITH THE PRESIDENT'S PROPOSAL WHOSE SPECIFICS STILL HAVEN'T BEEN REVEALED THE CLINTON ADMINISTRATION IS EXPECTED TO BROADLY DEFINE IMPROVED PERFORMANCE AS GAINS IN SHARE PRICE PROFITABILITY REVENUE OR PRODUCTIVITY IT COULD BE ANYTHING SAYS AN INDIVIDUAL CLOSE TO THE ADMINISTRATION WITH SUCH A VAGUE DEFINITION THAT'S A LOOPHOLE BIG ENOUGH TO DRIVE TWO 747S THROUGH SAYS WEBB BASSICK A PARTNER WITH CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL A NUMBER OF HIS CORPORATE CLIENTS HAVE BEEN PLOTTING WAYS TO COPE WITH A MILLIONDOLLAR TAX CAP A CLINTON CAMPAIGN PLEDGE THE UNEXPECTED LOOPHOLE HAS THROWN THEIR STRATEGY UP IN THE AIR MR BASSICK ADDS IF BUSINESSES FIND IT EASY TO TIE EXECUTIVE PAY AND PERFORMANCE NOBODY WILL PAY A CENT MORE IN TAXES AGREES JUDE RICH CHAIRMAN OF CONSULTANTS SIBSON & CO NO MATTER WHAT PERFORMANCE MEASURES ARE PICKED HE CONTINUES CLEVER MANAGERS LAWYERS AND CONSULTANTS WILL FIGURE WAYS TO DESIGN COMPENSATION PROGRAMS SO COMPANIES WON'T HAVE TO PAY A DIME MORE IN TAXES PRESIDENT CLINTON FIRST HINTED AT THIS LOOPHOLE LAST WEEK WHEN HE MET WITH A GROUP OF BUSINESS LEADERS AT THE WHITE HOUSE HE DEFINED EXCESSIVE PAY AS HIGH SALARIES THAT AREN'T JUSTIFIED BY THE PRODUCTIVITY OF THE ENTERPRISE GEORGE STEPHANOPOULOS MR CLINTON'S SPOKESMAN LATER EXPLAINED THAT THE PRESIDENT BELIEVES YOU SHOULDN'T NECESSARILY PENALIZE THE CHIEF EXECUTIVES OF COMPANIES THAT ARE DOING WELL IN CREATING THE LOOPHOLE THE ADMINISTRATION SEEMS TO BE TRYING TO PUT WINDOWDRESSING ON AN OTHERWISE UNPALATABLE IDEA FOR THE BUSINESS COMMUNITY OBSERVES ROBERT SALWEN A PRINCIPAL AT CONSULTANTS WILLIAM M MERCER INC MANY MAJOR COMPANIES ALREADY TIE A BIG CHUNK OF SENIOR EXECUTIVES' PAY TO PERFORMANCE EITHER THROUGH ANNUAL BONUSES OR LONGTERM COMPENSATION SUCH AS STOCK AND STOCK OPTIONS AT XEROX CORP FOR INSTANCE A BONUS ACCOUNTED FOR 45 OF THE 11 MILLION CASH COMPENSATION RECEIVED BY PAUL ALLAIRE CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN 1991 ACCORDING TO LARRY ROBINSON DIRECTOR OF CORPORATE COMPENSATION MR ALLAIRE'S BONUS PRIMARILY REFLECTED THE COMPANY'S PERFORMANCE WHEN WE DON'T DO WELL HE DOESN'T GET PAID WELL MR ROBINSON SAYS CONGRESS MAY EMBRACE A STRICTER PERFORMANCE STANDARD THAN THE CLINTON ADMINISTRATION PROPOSES SUGGESTS HEWITT'S MR BASSICK YET COMPANIES THAT REALLY GEAR THEIR EXECUTIVE PAY TO PERFORMANCE WON'T HAVE A PROBLEM WITH EITHER A MILLIONDOLLAR TAX CAP OR A TOUGH LINK BETWEEN PERFORMANCE AND PAY SAYS MR ROBINSON THE XEROX EXECUTIVE BUT FOR THE WORST OFFENDERS POORLY PERFORMING COMPANIES WITH HIGHLY PAID EXECUTIVES THIS WILL BE ONE MORE THING THAT HELPS TO CURB THOSE ABUSES MR ROBINSON ADDS 9302190088 930219 MARKETING & MEDIA NBC TURNS TO BILL COSBY TO BOOST ITS RANKING NEW YORK AS IT DID ONCE BEFORE NBC IS TURNING TO BILL COSBY TO PULL IT OUT OF THIRD PLACE THE COMEDIAN WILL RETURN TO THE NETWORK IN THE FALL AS STAR OF A SERIES OF TWOHOUR LIGHT MYSTERY MOVIES THAT WILL BE SPUN OFF INTO A WEEKLY SERIES IN THE 199495 SEASON NBC SAID YESTERDAY NBC A UNIT OF GENERAL ELECTRIC CO WAS IN THIRD PLACE IN SEPTEMBER 1984 WHEN THE COSBY SHOW MADE ITS DEBUT THE SITCOM WHICH WENT OFF THE AIR IN APRIL 1992 WAS THE TOPRANKED SERIES OF THE 1980S AND THE DRIVING FORCE BEHIND NBC'S REIGN IN THE FIRST PLACE WHICH ENDED LAST SEASON MR COSBY'S MOST RECENT PROJECT A SYNDICATED REVIVAL OF THE GAME SHOW YOU BET YOUR LIFE WAS LAUNCHED LAST FALL BUT WASN'T RENEWED BECAUSE OF MEDIOCRE RATINGS 9302190087 930219 POTOMAC WATCH FDR REDUX THE REAL POLITICS OF CLINTONOMICS BY PAUL A GIGOT IT'S WIDELY ASSUMED THAT LLOYD BENTSEN IS SECRETARY OF THE TREASURY BUT THIS MAY BE WISHFUL THINKING THIS PAST WEEK SUGGESTS THE JOB REALLY BELONGS TO JAMES CARVILLE I LOOOOOOOOOVE THE STOCK MARKET FALLING SAYS PRESIDENT CLINTON'S MAIN POLITICAL STRATEGIST COMMENTING ONLY HALF IRONICALLY ON THE MARKET'S TUESDAY NOSE DIVE IN THE 1980S THE STOCK MARKET ROSE 300 AND REAL INCOMES FELL MAYBE NOW THE STOCK MARKET WILL FALL AND REAL INCOMES WILL RISE CHANCELLOR OF THE EXCHEQUER CARVILLE IS A FUNNY GUY BUT IN A SENSE HIS WISECRACK EXPLAINS MR CLINTON'S TAXANDOFFEND PROGRAM THE PLAN ISN'T ABOUT ECONOMICS AT ALL THE PRESIDENT IS REALLY PROPOSING A POLITICAL COUNTERREVOLUTION A RESTORATION OF THE ABILITY TO TAX FOR NEW GOVERNMENT PURPOSES GIVE HIM CREDIT FOR AUDACITY HIS ECONOMIC AND HEALTHCARE IDEAS ARE THE BOLDEST GRAB FOR STATE POWER SINCE LBJ PASSED MEDICARE BE NOT MISLED BY CALCULATED ADLIBS THAT THE REAL ENGINE OF ECONOMIC GROWTH IN THIS COUNTRY IS THE PRIVATE SECTOR MR CLINTON IS SHREWD ENOUGH TO KNOW HE MUST STILL APPEAR MODERATE TO VOTERS WHO REMAIN SKEPTICAL OF GOVERNMENT SO IS HILLARY RODHAM CLINTON SHE INVITED FED CHAIRMAN ALAN GREENSPAN TO SIT BESIDE HER DURING THE STATE OF THE UNION ONLY ON TUESDAY DURING THE STOCKMARKET PLUNGE CAUSED BY THE MONDAY NIGHT OVAL OFFICE SPEECH THAT SHE COWROTE SEATED BETWEEN MRS CLINTON AND TIPPER GORE MR GREENSPAN LOOKED AS COMFORTABLE AS A TEENAGER POSING WITH HIS GIRLFRIEND'S PARENTS BUT THE DETAILS OF HIS PROGRAM REVEAL MR CLINTON'S MORE AMBITIOUS AGENDA OF PUTTING GOVERNMENT FIRST AFTER HIS EARLY POLITICAL MISSTEPS HE AND HILLARY AGAIN CONSULTED THEIR POLITICAL PROS MR CARVILLE WRITER PAUL BEGALA AND POLLSTER STAN GREENBERG THEY URGED ECONOMIC POPULISM SOCKING IT EVEN MORE TO THE RICH TO JUSTIFY HIS FLIPFLOP ON MIDDLECLASS TAXES TREASURY TAX WRITERS WERE SENT BACK TO THEIR COMPUTERS TO RATCHET UP TAX RATES AGAIN ANY SERIOUS IDEA TO CUT SPENDING WAS ALSO THROWN OVER THE SIDE TO MAKE SURE THE PROGRAM WOULD SELL TO LIBERAL DEMOCRATS IN CONGRESS MY FAVORITE BUDGET ANALYSTS JOHN COGAN AND TIM MURIS CALCULATE FOR THE AMERICAN ENTERPRISE INSTITUTE THAT FOR FISCAL YEAR 1994 THE CLINTON PLAN PROPOSES ONLY 36 BILLION IN NET SPENDING CUTS BUT 36 BILLION IN TAX INCREASES A 10 TO ONE RATIO SO MUCH FOR REINVENTING THE STATE MR BENTSEN BOUGHT THIS PARTLY BECAUSE HE SAW MR CLINTON'S DIRECTION AND PARTLY BECAUSE EVEN HE IS A PRISONER OF DEFICITCUTTING MYOPIA THIS THEORY SEEMS TO BE THAT BOND MARKETS ARE THE MOST IMPORTANT THING IN ECONOMICS AND BONDS CARE ONLY ABOUT DEFICITS SO REDUCING THE DEFICIT COUNTS ABOVE ALL THINGS EVEN IF THAT REQUIRES PUNITIVE TAXES NEVER MIND THAT MAYBE BOND MARKETS ARE HEALTHY BECAUSE THEY BELIEVE MR GREENSPAN WON'T REINFLATE THE CURRENCY BUT MR CLINTON'S MAIN GOAL IS POLITICAL HE WANTS NOTHING LESS THAN TO RELEGITIMIZE THE SOCIALINSURANCE STATE MR GREENBERG THE CLINTON POLLSTER AND ADVISER GAVE THIS GAME AWAY IN A BRILLIANT AUTUMN 1991 ARTICLE IN THE AMERICAN PROSPECT MAGAZINE DEMOCRATS HAVE SUFFERED HE WROTE BECAUSE RONALD REAGAN BUILT A TOPDOWN COALITION OF THE RICH AND MIDDLE CLASS AND RAISED CYNICISM ABOUT GOVERNMENT SO TO RECREATE A RATIONALE FOR ELECTING DEMOCRATS THE PARTY MUST ONCE AGAIN BECOME THE PARTY OF GOVERNMENT THIS MEANS DEFENDING AND ENLARGING SOCIAL INSURANCE INITIATIVES THAT REACH THE LOWER AND MIDDLE CLASSES RATHER THAN CONSTRUCTING SAFETY NETS THAT PROTECT ONLY THE POOR MR GREENBERG WROTE AND IT MEANS SUPPORTING A NEW CLASS POLITICS THAT DIVIDES THE SUBURBAN MIDDLE CLASS FROM THE RICH WHEN DEMOCRATS INSIST THAT THE WEALTHY PAY THEIR FAIR SHARE OF TAXES THEY SEND A MESSAGE THAT EVERYBODY MUST CONTRIBUTE HE WROTE IN OTHER WORDS THE CLINTON NEW DEMOCRATS DON'T BELIEVE GOVERNMENT IS TOO BIG THEY BELIEVE IT'S TOO SMALL BECAUSE IT HASN'T DONE ENOUGH FOR THE FORGOTTEN MIDDLE CLASS IT'S NO ACCIDENT THAT MR CLINTON SO OFTEN CITES FDR ROOSEVELT WAS THE ORIGINAL NEW DEMOCRAT THE FIRST TO EXPAND GOVERNMENT ON BEHALF OF THE MIDDLE CLASS SOCIAL SECURITY THE GREENBERGCLINTON STRATEGY IS A BID TO BUILD A NEW COALITION FOR GOVERNMENT ROOTED IN THE MIDDLE CLASS A SORT OF SUBURBAN NEW DEAL THIS EXPLAINS MR CLINTON'S CLASSWAR RHETORIC AGAINST THE RICH AND HIS SEARCH FOR VILLAINS SUCH AS THE DRUG INDUSTRY FDR RAN AGAINST ECONOMIC ROYALISTS AND IT EXPLAINS WHY MR CLINTON IS SO HELLBENT ON SOLVING THE HEALTHCARE CRISIS IF HE CAN USE GOVERNMENT TO ASSUAGE SUBURBAN ANXIETY ABOUT THE COST OF HEALTH CARE HE CAN CREATE A NEW CLASS OF VOTERS WHO VALUE GOVERNMENT AND DEMOCRATS FDR DID THE SAME WITH THE ELDERLY CAN HE DO IT ON HIS TAX PROGRAM MR CLINTON'S ALLY IS THE DEFICIT WHICH HE IS USING TO FAN ANXIETY EVEN IN A GROWING ECONOMY HE WILL ATTRACT BIG BUSINESS WHICH WANTS TAX FAVORS AND HOPES TO LURE SOME REPUBLICANS SENS DOLE AND DOMENICI THOUGH SO FAR HIS PROGRAM HAS ONLY DRIVEN THEM INTO THE ARMS OF REP NEWT GINGRICH IT ALSO HELPS MR CLINTON THAT NO MAJOR FIGURE NOW SPEAKS FOR ENTREPRENEURIAL CAPITALISM AGAINST THE POLITICAL STATE MR CLINTON'S BURDEN IS THAT HE NEVER TOLD THE PUBLIC ABOUT HIS TAXANDOFFEND AGENDA DURING THE CAMPAIGN HE'S GAMBLING NOW THAT AMERICANS WILL ACCEPT HIS RHETORIC WITHOUT INSPECTING THE FINE PRINT LET'S HOPE THEY DON'T 9302190086 930219 BANK EXAMINERS GOT A TIP LAST YEAR ON IRREGULARITIES AT REVERE ARMORED BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE COMPTROLLER OF THE CURRENCY'S OFFICE TOLD ITS FIELD EXAMINERS LATE LAST SUMMER TO NOTIFY SEVERAL MAJOR BANKS THAT IT HAD RECEIVED A TIP ABOUT COMMINGLED BANK FUNDS AT REVERE ARMORED INC A WARNING THAT COULD HAVE STOPPED THEM FROM KEEPING MILLIONS OF DOLLARS AT RISK FEDERAL AUTHORITIES SAY THERE IS A SHORTFALL OF ABOUT 40 MILLION IN BANK FUNDS THAT WERE SUPPOSED TO BE HELD BY REVERE A BOHEMIA NY ARMORED TRUCK COMPANY THAT WAS SEIZED BY POLICE LAST WEEK THE COMPANY'S OWNERS ROBERT AND SUSAN SCARETTA HAVE BEEN CHARGED WITH BANK FRAUD AND THEFT THEY ARE FREE ON BAIL PENDING A PRELIMINARY HEARING MARCH 3 THE TIP FROM AN ANONYMOUS CALLER CAME TO A WOMAN IN THE NEW YORK OFFICE OF THE COMPTROLLER OF THE CURRENCY WHICH REGULATES NATIONAL BANKS I TOLD HER THERE WERE A NUMBER OF BANK CASH INVENTORIES AT REVERE AND THAT IF ONE OF THE BANKS CAME IN FOR AN AUDIT THE FIRM WOULD COMBINE ALL THE INVENTORIES TO SATISFY THAT ONE BANK THE TIPSTER WHO ASKED NOT TO BE IDENTIFIED SAID YESTERDAY HE SAID HE HAD OVERHEARD A CONVERSATION BUT WASN'T IN EITHER THE BANKING OR SECURITY BUSINESS A SPOKESWOMAN FOR THE COMPTROLLER'S OFFICE VERIFIED THAT THE REGULATOR HAD RECEIVED SUCH A TIP LAST SUMMER AND SAID IT PASSED IT ALONG TO EXAMINERS OF THE BANKS THAT DEALT WITH REVERE TYPICALLY IN SUCH INSTANCES SHE SAID EXAMINERS SUGGEST THE BANKS TAKE ACTION TO LOOK INTO IT IT IS NOT CLEAR HOWEVER WHETHER THE EXAMINERS NOTIFIED BANKS OF THE TIP AMONG THE BANKS WITH HEAVY EXPOSURE TO REVERE ARE CITICORP'S CITIBANK THE US ARM OF BRITAIN'S NATIONAL WESTMINSTER BANK PLC AND MARINE MIDLAND BANKS A UNIT OF HSBC HOLDINGS PLC CITIBANK HAS SAID IT HAS 225 MILLION AT REVERE NATWEST IS BELIEVED TO HAVE ABOUT 6 MILLION AND MARINE CLAIMS 348 MILLION REPRESENTATIVES OF CITIBANK AND MARINE DECLINED TO COMMENT CITING BANK POLICIES AGAINST COMMENTING ON COMMUNICATIONS WITH REGULATORS A NATWEST SPOKESMAN SAID NATWEST IS UNAWARE OF ANY CONTACT FROM THE COMPTROLLER OF CURRENCY'S OFFICE THE BANKS MOVED LAST WEEK TO WITHDRAW THEIR FUNDS AFTER A LLOYDS OF LONDON UNDERWRITING GROUP SAID IT WOULD CANCEL A 100 MILLION POLICY ON REVERE EFFECTIVE FEB 21 THE BANKS MAINTAIN THEY ARE COVERED BY LLOYDS AND OTHER BANK POLICIES THE COMPTROLLER'S OFFICE WAS NOT ALONE IN TRYING TO ALERT THE BANKS WAYNE MARSHALL CHAIRMAN OF HUDSON ARMORED CAR & COURIER SERVICE INC OF HIGHLAND NY SAID HE CALLED MARINE LAST FALL ABOUT A TEMPORARY SHORTFALL IN A SURPRISE NATWEST AUDIT AT REVERE IN MAY AFTER TALKING WITH MARION FINLEY OF MARINE'S OPERATIONS DEPARTMENT HE SAID I GOT ZERO RESPONSE THE MARINE SPOKESMAN DECLINED TO COMMENT ON MR MARSHALL'S ACCOUNT HE ADDED THAT CHECKS WITH REVERE FOUND NO SUBSTANTIATED EVIDENCE OF ANY PROBLEMS NATWEST SHOULD HAVE HAD MORE REASON THAN OTHERS TO BE SUSPICIOUS OF REVERE SAYS GERALD KELLY OWNER OF SAFE & SOUND INC A NEW YORK SECURITY COMPANY FOR SEVERAL YEARS HE SAYS HE WARNED BANK EXECUTIVES OF CORRUPTION IN THEIR MONEY ROOMS INVOLVING PAYOFFS TO STEER ARMOREDCAR BUSINESS TO CERTAIN CARRIERS HE SAID HIS WARNINGS WERE IGNORED DURING THE MAY AUDIT OF REVERE NATWEST CAME UP NEARLY 6 MILLION SHORT OF THE AMOUNT THAT WAS SUPPOSED TO BE HELD AT REVERE'S HEADQUARTERS THE FOLLOWING DAY THE BANK SAYS THE SHORTFALL WAS RECTIFIED WITH A TRANSFER OF FUNDS TO ITS ACCOUNT AT THE FEDERAL RESERVE BANK DETAILS OF THE AUDIT CAME OUT IN A LAWSUIT PENDING AGAINST NATWEST AND REVERE BY IBI SECURITY SERVICES A NASSAU COUNTY NY COMPANY THAT SAID THE TWO CONSPIRED TO CAUSE IBI TO GO BANKRUPT REVERE AND NATWEST DENY THE CHARGE JOHN MALLON FORMER VICE CHAIRMAN OF IBI ALSO SAID HE BELIEVES REVERE SHORTCHANGED HIS COMPANY IN ITS WEEKLY 50000 DELIVERY OF COINS FOR NATWEST A SURPRISE AUDIT OF IBI BY NATWEST IN MID1991 SHOWED THAT 45 MILLION OF CURRENCY WAS ON HAND AS EXPECTED BUT THAT 27 MILLION IN COINS WAS MISSING REVERE HE SAID CLAIMS A FIRE DESTROYED RECORDS OF COIN DELIVERIES AFTER NATWEST'S AUDIT OF REVERE MR KELLY SAYS HE CONTACTED NATWEST EXECUTIVES IN NEW YORK AND LONDON ABOUT THE SHORTFALL AND HIS CORRUPTION CHARGES ONE LETTER IN LATE OCTOBER WENT TO DEREK WANLESS CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY WHO REPLIED THAT HE HAD CHECKED WITH NATWEST USA AND THAT ALL WAS IN ORDER SAID MR KELLY A NATWEST SPOKESMAN SAID MR KELLY HAS BEEN IN CONTACT WITH THE BANK FOR A VERY LONG TIME ABOUT A VARIETY OF MATTERS HE DECLINED TO COMMENT FURTHER THE CANCELLATION OF INSURANCE BY LLOYDS WAS TOUCHED OFF BY A VIDEOTAPE RECEIVED IN LATE DECEMBER FROM JAMES NEALY PRESIDENT OF ARMORED MOTOR SERVICE OF AMERICA INC EAST ROCHESTER NY WHICH HAD LOST OUT TO A REVERE BID FOR A SHIPMENT OF 100 MILLION IN CASH BETWEEN FEDERAL RESERVE BANK OF NEW YORK OFFICES IN BUFFALO AND NEW YORK CITY ON DEC 21 DURING THE RUN THE TAPE SHOWED EGREGIOUS SECURITY LAPSES MR NEALY SAYS INCLUDING A TRUCK STOPPING FOR BREAKS AT ISOLATED HIGHWAY PULLOFF POINTS IN THE MIDDLE OF THE NIGHT 9302190085 930219 FED IS INVESTIGATING TRADING PRACTICES IN MARKET FOR DEVELOPINGCOUNTRY DEBT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MANHATTAN DISTRICT ATTORNEY'S OFFICE AND THE FEDERAL RESERVE BOARD ARE INVESTIGATING ALLEGATIONS OF IMPROPER TRADING IN THE HUGE AND GROWING MARKET FOR DEVELOPINGCOUNTRY LOANS THESE INQUIRIES APPEAR TO BE AIMED PRIMARILY AT ASCERTAINING WHETHER BANK OFFICERS PROFITED FROM TRADING SUCH LOANS AT THE EXPENSE OF THEIR OWN INSTITUTIONS AND STOCKHOLDERS ACCORDING TO TRADERS AND OTHER PEOPLE INTERVIEWED BY INVESTIGATORS FROM THE FED AND THE DISTRICT ATTORNEY'S OFFICE IN THE PAST SEVEN YEARS MANY BIG US BANKS HAVE SOLD AT BIG DISCOUNTS TO FACE VALUE HUNDREDS OF MILLIONS OF DOLLARS OF LOANS THEY HAD MADE TO MEXICO BRAZIL AND OTHER DEVELOPING COUNTRIES THE INVESTIGATIONS WHICH BEGAN IN RECENT MONTHS SEEM TO BE FOCUSING ON THE MANY BANKS THAT SOLD SUCH LOANS VERY RAPIDLY SUCH AS UNITS OF FIRST CHICAGO CORP AND SECURITY PACIFIC CORP ACCORDING TO PEOPLE FAMILIAR WITH THE PROBES INVESTIGATORS APPARENTLY BELIEVE THAT IN SUCH SWIFT SALES BIG PROFITS MAY HAVE TEMPTED SOME BANK OFFICERS TO SET UP ACCOUNTS FOR THEMSELVES AND TRADE FOR THESE ACCOUNTS TO THE DETRIMENT OF THEIR OWN INSTITUTIONS WE'RE AWARE OF THE ISSUES SURROUNDING SECURITY PACIFIC A FIRST CHICAGO SPOKESWOMAN SAID BUT SHE ADDED A FULL REVIEW OF HER BANK'S DEBTTRADING HAD FOUND NO WRONGDOING SHE ADDED WE'RE UNAWARE OF IMPROPRIETIES CONCERNING OUR OWN OPERATION AND WE'RE UNAWARE OF ANY INVESTIGATION SECURITY PACIFIC WHICH RECENTLY MERGED WITH BANKAMERICA CORP CLOSED ITS MERCHANT BANK IN 1989 ITS DEVELOPINGCOUNTRY DEBTTRADING UNIT WHICH HAD BEEN PART OF THE MERCHANT BANK WAS CLOSED SHORTLY BEFORE THAT AFTER SOME SECURITY PACIFIC TRADERS MADE ALLEGATIONS IN AN INTERNAL COMPANY REPORT ABOUT THE RAPID MANNER IN WHICH THE BANK HAD SOLD ITS DEVELOPINGCOUNTRY LOANS INVESTIGATORS FROM THE FED AND THE DISTRICT ATTORNEY'S OFFICE ARE APPARENTLY ALSO LOOKING AT OTHER KINDS OF SUSPECTED ABUSES IN THE DEVELOPINGCOUNTRY DEBT MARKET SUCH AS TRADING ON PRIVILEGED INFORMATION TRADING FOR THE FIRM'S OWN INTEREST BEFORE EXECUTING A CLIENT'S ORDER OR SOCALLED FRONTRUNNING AND OTHER IRREGULAR PRACTICES ACCORDING TO TRADERS AND OTHER BANKERS CLOSE TO THE INVESTIGATIONS TURNOVER IN THE DEVELOPINGCOUNTRY DEBT MARKET HAS ROCKETED IN RECENT YEARS AND IS EXPECTED TO EXCEED 600 BILLION THIS YEAR ACCORDING TO MARKET PARTICIPANTS THE MARKET HAS RECENTLY BECOME MORE SOPHISTICATED AND AN ASSOCIATION OF MOST OF THE MARKET'S BIGGER TRADERS THE SOCALLED EMERGING MARKETS TRADERS ASSOCIATION HAS RECENTLY DRAWN UP A CODE OF CONDUCT ACCORDING TO ITS EXECUTIVE DIRECTOR THOMAS WINSLADE IN PREVIOUS YEARS THERE WERE FEW RULES AND THE FED AND OTHER BANK REGULATORS SEEMED UNWILLING TO STEP IN TO REGULATE THE NEW MARKET THE DISTRICT ATTORNEY'S OFFICE BECAME INTERESTED IN THE DEVELOPINGCOUNTRY DEBT MARKET THROUGH ITS INVESTIGATION OF GHAITH PHARAON MR PHARAON IS A SAUDI ARABIAN INVESTOR WHO HAS BEEN INDICTED BY NEW YORK STATE AND WASHINGTON DC FEDERAL GRAND JURIES FOR FRAUD HE ALLEGEDLY COMMITTED WITH SENIOR OFFICERS OF BANK OF CREDIT & COMMERCE INTERNATIONAL A UNIT OF BCCI HOLDINGS LUXEMBOURG SA MR PHARAON WHO IS A FUGITIVE FROM US JUSTICE AND IS BELIEVED TO BE IN SAUDI ARABIA OR PAKISTAN ACQUIRED SUBSTANTIAL INVESTMENTS IN CHILE AND ARGENTINA BY SWAPPING BANK LOANS FOR LOCAL CURRENCY THOSE LOANS TO THE GOVERNMENTS OF ARGENTINA AND CHILE WERE ACQUIRED AT A SUBSTANTIAL DISCOUNT IN THE DEVELOPINGCOUNTRY DEBT MARKET ABOUT THREE YEARS AGO THE FEDERAL RESERVE BOARD IN WASHINGTON HAD REQUESTED THAT THREE SENIOR MEMBERS OF ITS STAFF LOOK AT THE MARKET BUT THAT EXAMINATION SOON LAPSED THE WASHINGTON FED HOWEVER RESTARTED ITS INVESTIGATION LAST FALL ONCE IT BECAME CLEAR THAT THE MANHATTAN DISTRICT DTTORNEY WAS INVESTIGATING THE MARKET 9302190083 930219 TECHNOLOGY & HEALTH BIG SCIENCE PROJECTS SET FOR CUTBACKS CLINTON PICKS CHEAPER ITEMS TO CREATE JOBS BOOST US COMPETITIVENESS BY BOB DAVIS AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SAY GOODBYE TO THE HEYDAY OF BIG SCIENCE PROJECTS PRESIDENT CLINTON'S GROWTH PACKAGE CALLS FOR SCALING BACK SHOWCASE SCIENCE PROJECTS OF PRESIDENTS REAGAN AND BUSH THAT COST AT LEAST 10 BILLION EACH THE ORBITING SPACE STATION THE SUPERCONDUCTING SUPERCOLLIDER AND THE STAR WARS MISSILE DEFENSE SYSTEM INSTEAD MR CLINTON IS HIGHLIGHTING AN ARRAY OF MUCH CHEAPER PROJECTS WHICH ARE TARGETED TO BOOST US COMPETITIVENESS AND CREATE HIGHPAYING JOBS HE IS DOWNSIZING THOSE PROJECTS THAT DON'T SHOW IMMEDIATE SOCIETAL BENEFITS SAYS PHYSICIST ROBERT PARK WASHINGTON REPRESENTATIVE OF THE AMERICAN PHYSICAL SOCIETY AND INCREASING THOSE PROJECTS WHICH HAVE A GREATER POTENTIAL FOR CONTRIBUTING TO TECHNOLOGY AMONG MR CLINTON'S FAVORED PROJECTS ARE A HIGHSPEED COMPUTER NETWORK TO BRING SUPERCOMPUTER POWER TO FACTORIES LIBRARIES AND HOSPITALS A HIGHSPEED RAIL SYSTEM A NEW NUCLEAR REACTOR THAT USES NEUTRONS TO RESEARCH NEW MATERIALS AND DEVELOPING NEXTGENERATION COMMUTER AIRCRAFT AND BIG COMMERCIAL JETS NONE OF THESE PROJECTS IS EXPECTED TO COST MUCH MORE THAN 1 BILLION ANNUALLY SMALL PROJECTS BY REAGAN OR BUSH STANDARDS AND EACH IS SUPPOSED TO HAVE A COMMERCIAL PAYOFF CLINTON IS FASCINATED BY THE COMMERCIALIZATION OF TECHNOLOGY SAID SEN JAY ROCKEFELLER THE WEST VIRGINIA DEMOCRAT WHO HEADS THE SENATE SCIENCE SUBCOMMITTEE THE PREVIOUS REPUBLICAN ADMINISTRATIONS USED BIGSCIENCE PROJECTS AS A WAY TO DEMONSTRATE US TECHNOLOGICAL MIGHT FOR INSTANCE THE 30 BILLION SPACE STATION WAS INSPIRED BY MR REAGAN'S FERVOR TO STAY AHEAD OF THE FORMER SOVIET UNION BOTH MESSRS REAGAN AND BUSH FROWNED ON USING GOVERNMENT SCIENCE DOLLARS TO COMMERCIALIZE TECHNOLOGY PREFERRING TO LEAVE THAT TO INDUSTRY NOW SAYS HOUSE SCIENCE COMMITTEE CHAIRMAN GEORGE BROWN D CALIF THE CLINTON ADMINISTRATION WILL BE ENCOURAGING US TO MOVE WHERE THE BUSH ADMINISTRATION HAD BEEN DISCOURAGING US FOR INSTANCE THE COMMERCE DEPARTMENT'S ADVANCED TECHNOLOGY PROGRAM WHICH THE BUSH ADMINISTRATION FOUGHT IN CONGRESS AND THEN LIMITED IN SIZE IS SLATED FOR A TENFOLD INCREASE BY THE CLINTON ADMINISTRATION OVER THE NEXT FOUR YEARS TO A BUDGET OF 700 MILLION IN 1997 THE PROGRAM FUNDS GOVERNMENTPRIVATE INDUSTRY RESEARCH VENTURES IN SUCH AREAS AS ADVANCED ELECTRONICS AND MATERIALS FOR THE MOST PART THE GOVERNMENT HAS TRIED SUCH VENTURES ONLY AT THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY DARPA HAS SUPERVISED THE DEVELOPMENT OF NEXTGENERATION COMPUTERS AND COMPUTER NETWORKS AMONG DOZENS OF INNOVATIONS THAT HAVE EVENTUALLY BEEN INCORPORATED INTO MILITARY AND COMMERCIAL SYSTEMS CRITICS CONTEND THAT COMMERCIAL TECHNOLOGY PROJECTS OFTEN WIND UP AS CAPTIVES OF LAWMAKERS WHO FUND THEM STRICTLY AS A WAY OF BESTOWING MONEY ON CONSTITUENTS REGARDLESS OF THE PROJECTS' MERITS IN ADDITION IT IS FAR FROM CLEAR THAT THE GOVERNMENT WILL BE ABLE TO CHOOSE WISELY IN DETERMINING THE MOST USEFUL TECHNOLOGIES CRAIG FIELDS A FORMER DARPA DIRECTOR WHO NOW HEADS A PRIVATE RESEARCH CONSORTIUM SAID THE ADVANCEDTECHNOLOGY PROGRAM MUST BE JUDGED BY A DIFFERENT STANDARD THAN DARPA WHETHER THE PROGRAM CREATES GOOD DOMESTIC JOBS THAT WOULD MEAN THE PROGRAM WAS ABLE TO CREATE USEFUL TECHNOLOGY AND COMMERCIALIZE IT THE CLINTON STRATEGY CALLS FOR FAR GREATER INDUSTRY INVOLVEMENT IN CHOOSING HOW TO SPEND A PORTION OF GOVERNMENT RESEARCH DOLLARS WHICH TOTAL ABOUT 76 BILLION A YEAR THE ENERGY DEPARTMENT FOR EXAMPLE IS SUPPOSED TO CONSULT WITH NATURALGAS PRODUCERS TO DECIDE HOW TO SPEND AN EXTRA 14 MILLION NEXT YEAR AND MR CLINTON'S AND VICE PRESIDENT ALBERT GORE'S ENVIRONMENTAL AGENDA FLAVORS THEIR RESEARCH CHOICES THE CLINTON PLAN SLICES MONEY FOR NUCLEAR REACTORS BUT INCREASES THEM SUBSTANTIALLY FOR ENVIRONMENTAL TECHNOLOGY CONSERVATION AND SOLAR POWER THE NEW ADMINISTRATION INSISTS IT STILL SUPPORTS THE SPACE STATION AND THE SUPERCOLLIDER BUT IS TROUBLED BY THEIR MOUNTING COSTS MR CLINTON HAS CALLED FOR SCALING DOWN THE SPACE STATION AND STRETCHING OUT THE CONSTRUCTION SCHEDULE OF THE GIANT ATOM SMASHER BUT THE ADMINISTRATION'S LACKLUSTER SUPPORT MAY GIVE A HAND TO OPPONENTS OF THESE PROJECTS WHO HAVE COME CLOSE BUT FAILED TO KILL THEM IN CONGRESS 9302190082 930219 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A JAPANESE HOTLINE OPERATED FOR TWO DAYS FOR WORKERS WHO HAVE BEEN FIRED OR PRESSURED TO QUIT GOT AN EARFUL ESPECIALLY FROM WHITECOLLAR PEOPLE OLDER THAN 45 THE JAPAN LABOR LAWYERS' ASSOCIATION SAID THE REACTION POINTED OUT THE SEVERITY OF LABOR CONDITIONS IN A WEAK ECONOMY AND AN INCREASE IN UNFAIR DISMISSALS THOUGH THE JOBLESS RATE IS JUST 24 FIRMS WITH SLUGGISH PROFITS OFTEN MOVE WORKERS INTO TEDIOUS OR IRRELEVANT POSTS IN HOPES THEY WILL QUIT CALLERS COMPLAINED ABOUT PAY CUTS OR ASSIGNMENTS FOR WHICH THEY WEREN'T QUALIFIED A MANAGER WHO REFUSED TO RESIGN HAD TO WORK IN THE BASEMENT FOR SIX MONTHS A COMPUTER SOFTWARE WORKER WAS TRANSFERRED FROM TOKYO TO A REMOTE BRANCH WHERE HE HAD TO CHOP WOOD AND WRITE A DAILY COMPOSITION MEANWHILE THE SUPREME COURT UPHELD A LOWER COURT RULING THAT ASAHI FIRE & MARINE INSURANCE CO COMMITTED AN UNFAIR LABOR PRACTICE BY TRANSFERRING AN EMPLOYEE WHO THUS HAD TO LIVE APART FROM HIS FAMILY FOR EIGHT YEARS THE PLAINTIFF'S LAWYER SAID THIS MARKED THE FIRST TIME THE HIGH COURT ANNULLED A TRANSFER THAT SEPARATED A MARRIED COUPLE BRAZIL SLASHED TARIFFS ON MORE THAN 100 IMPORTS INCLUDING FOODSTUFFS AND CLEANING AND BEAUTY PRODUCTS THE MOVE TO FIGHT INFLATION THAT LAST MONTH RAN AT A RATE OF AT LEAST 26 IS AIMED AT MAKING IMPORTED PRODUCTS MORE COMPETITIVE WITH DOMESTICALLY MADE GOODS THE TARIFF ON WHEAT WHICH BRAZIL IMPORTS FROM ARGENTINA AND THE US DROPPED TO 5 FROM 15 DUTIES ON CANNED GOODS WERE CUT TO 15 FROM 25 PASTAS AND NOODLES TO 30 FROM 40 BISCUITS AND COOKIES TO 20 FROM 40 AND FRUITS VEGETABLES CANDY JAMS AND TOMATO PASTE TO 10 FROM 20 THE BRITISH UNEMPLOYMENT RATE ROSE TO 106 OF THE WORK FORCE LAST MONTH FROM 105 IN DECEMBER THIS MARKED A SETBACK IN THE GOVERNMENT'S BATTLE FOR ECONOMIC RECOVERY FROM THE LONGEST DOWNTURN SINCE THE DEPRESSION THE NUMBER OF PEOPLE OUT OF WORK ROSE A SEASONALLY ADJUSTED 22100 TO 2995000 THE UNADJUSTED TOTAL CLIMBED 78726 TO 3062065 THE HIGHEST SINCE APRIL 1987 UNEMPLOYMENT COULD GROW TO A SEASONALLY ADJUSTED TOTAL OF AT LEAST 33 MILLION AND STAY ABOVE 3 MILLION FOR THE REST OF THE DECADE JOBLESSNESS USUALLY DOESN'T FALL UNTIL WELL INTO A RECOVERY PORTUGAL'S LITERACY RATE IMPROVED SUBSTANTIALLY OVER A DECADE CENSUS DATA SHOW THAT 873 OF PEOPLE OLDER THAN 10 COULD READ AND WRITE IN 1991 UP FROM 814 IN 1981 AT THE SAME TIME PORTUGAL'S POPULATION EDGED UP ONLY TO 986 MILLION FROM 985 MILLION MORE SCHOOL BUSES FOR CHILDREN IN REMOTE AREAS HELPED IMPROVE THE LITERACY RATE WHILE THE NUMBER OF PEOPLE WITH A FORMAL EDUCATION GREW MALAYSIA'S MONARCHY ASSENTED TO A COMPROMISE BILL CURBING THE CONSTITUTIONALLY GUARANTEED PRIVILEGES AND ABOVETHELAW STATUS OF THE NINE ROYAL SULTANS THIS SETTLED A LEGISLATIVE FEUD BETWEEN THE GOVERNMENT AND ROYALTY PARLIAMENT WILL CONSIDER THE AMENDED BILL NEXT MONTH THE DISPUTE HAD TRIGGERED FEARS OF A FURTHER SPLIT IN ALLEGIANCE OF THE MALAY MAJORITY BETWEEN ITS SYMBOLIC PROTECTORS THE SULTANS AND ITS POLITICAL POWER BASE THE UNITED MALAYS NATIONAL ORGANIZATION GERMAN FINANCE MINISTER THEO WAIGEL PROPOSED SETTING UP A BANK TO LEND TO SMALL AND MEDIUMSIZED BUSINESSES IN RUSSIA TO HELP KEEP THE REPUBLIC'S ECONOMIC REFORMS ON TRACK THE NEW BANK HE TOLD THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IN LONDON WOULD COMPLEMENT AND NOT COMPETE WITH THE EBRD WHICH MAINLY LENDS TO STATEOWNED COMPANIES IN EASTERN EUROPE AND ARRANGES FINANCING TO REBUILD INFRASTRUCTURE THE EBRD RESPONDED POSITIVELY TO THE IDEA CHINA SAID ITS INFLATION RATE LAST YEAR WAS 64 THOUGH THE PACE IN SOME REGIONS HIT 14 AFTER LOW PRICES OF MANY PRODUCTS WERE FREED FROM STATE CONTROL THE GOVERNMENT WHICH HAS BEEN WORRIED THAT THE ECONOMY IS OVERHEATING SAID PRESSURE FOR RAPID INFLATION IS BEING HELD UNDER CONTROL EVEN THOUGH THE MONEY SUPPLY HAS EXPANDED MORE THAN BEIJING WANTED CHINA IN THE PAST YEAR HAS DEREGULATED PRICES OF 600 PRODUCTION MATERIALS AS WELL AS GRAIN AND OTHER CONSUMER STAPLES GROSS DOMESTIC PRODUCT PER CAPITA LAST YEAR WAS 2055 YUAN 352 UP 19 FROM 1991 FOR THE BIGGEST INCREASE EVER INDUSTRIAL PRODUCTION ROSE 21 THE MOST SINCE CHINA BEGAN ECONOMIC REFORMS IN 1978 STATEOWNED ENTERPRISES OPERATING AT A LOSS FELL TO 25 FROM 35 MORE THAN ONE MILLION WORKERS WERE LAID OFF BUT ONEFOURTH OF THEM WERE GIVEN NEW JOBS AND ABOUT TWOTHIRDS WERE TRAINED AND REASSIGNED WHILE 10 HAD TO FEND FOR THEMSELVES RETAIL SALES CLIMBED 98 TO 109 BILLION YUAN 1866 BILLION AS PER CAPITA URBAN INCOMES ROSE 88 TO 1826 YUAN AND FARM INCOMES INCREASED 59 TO 784 YUAN CIVIL SERVANTS IN GREECE STAGED A ONEDAY STRIKE CLOSING GOVERNMENT OFFICES SCHOOLS AND HOSPITALS AND DEMANDING PAY RAISES GREATER THAN THE 91 OFFERED AS INFLATION MAY HIT 125 THIS YEAR TOURIST ARRIVALS IN NEW ZEALAND TOTALED 140900 IN DECEMBER A RECORD FOR ANY MONTH AND UP 12 FROM A YEAR EARLIER FOR THE FULL YEAR ARRIVALS ROSE 10 TO 11 MILLION COMPARED WITH 1991 9302190081 930219 ARNIE'S CHANNEL FOR REAL SWINGERS IS LIKELY TO BE NICKNAMED TEEV BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL JUST CALL IT CHANNEL FORE THOSE WHO DREAM ABOUT THE PERFECT TEE SHOT OR CHIPPING IN FROM 30 FEET OFF THE GREEN OR PLAYING THE BACK NINE AT PEBBLE BEACH MAY SOON BE ABLE TO WAKE UP AND SEE IT ON TELEVISION GOLFING LEGEND ARNOLD PALMER HAS LINED UP PLANS FOR AN ALLGOLF ALLTHETIME 24HOUR CABLETELEVISION NETWORK FOR THE ULTIMATE GOLF FANATIC AS EARLY AS 1994 MR PALMER PROMISES TO LAUNCH THE GOLF CHANNEL AND HE HAS EVEN CHIPPED IN A FEW DOLLARS TO GET THE PROJECT TEED UP THE CHANNEL'S OWNER TGC INC THINKS AN ABUNDANCE OF GOLF PROGRAMMING IS JUST HIDING IN THE ROUGH I CAN SEE ALL KINDS OF THINGS ON THIS CHANNEL SAYS JIM SHEPHERD A SPOKESMAN FOR THE LA QUINTA CALIF VENTURE YOU KNOW GOLF TOURNAMENTS GOLF LESSONS GOLF QUIZ SHOWS GOLF TALK SHOWS AND GOLF EXERCISE PROGRAMS THE THOUGHT OF GOLF EXERCISE PROGRAMS PUZZLES SOME POTENTIAL VIEWERS WHAT WOULD THAT BE LIKE TRYING TO GET THE KEY IN THE GOLF CART ASKS LAURA VAN DOREN A SOMETIME GOLFER AND FULLTIME PHYSICAL THERAPIST IN ALBANY NY STILL MR SHEPHERD SAYS HIS CHANNEL'S SUCCESS IS AS SURE AS ARNIE'S THREEFOOT PUTTS USED TO BE I WAS WITH CNN EARLY ON IN ITS HISTORY AND THE DOUBTERS DIDN'T THINK VIEWERS WANTED 24 HOURS OF NEWS HE SAYS BUT THAT'S WORKED OUT ALL RIGHT AND FRANKLY I THINK THERE'S MORE GOLF OUT THERE THAN NEWS MR SHEPHERD ANTICIPATES 600000 SUBSCRIBERS EACH PAYING 5 OR 6 A MONTH IN THE FIRST YEAR AND THREE MILLION SUBSCRIBERS BY THE THIRD YEAR AT WHICH POINT HE BELIEVES THE CHANNEL WOULD BREAK EVEN BUT EVEN GOLF DIEHARDS WONDER IF THE 24HOUR CHANNEL ISN'T BOUND FOR THE BUNKER I'M NOT SURE ABOUT THIS ONE SAYS LOU FISHMAN EDITOR OF GOLF SHOP OPERATIONS A TRADE MAGAZINE THAT'S QUITE A LOT OF GOLF FOR ALMOST ANYBODY AND THE NETWORKS HAVE PRETTY MUCH COVERED ALL THAT'S DESIRABLE IN GOLF VIRTUALLY EVERY MAJOR TOURNAMENT THE SKINS GAMES OTHER PACKAGES IT'S ALL PRETTY MUCH COVERED MR FISHMAN THOUGH MAY BE UNDERESTIMATING THE INTENSE INTEREST OF FAIRWAY FANATICS IT'S A FANTASTIC IDEA SAYS TIM TRELEASE A NEW YORK GOLF INSTRUCTOR SINCE I WORK DAYS THE ONLY TIME I CAN REALLY WATCH IS AT HOME AND THEN ONLY WHEN MY WIFE IS ASLEEP HEY PEOPLE MAY WONDER ABOUT THIS IDEA BUT THE WEATHER CHANNEL SEEMS TO BE DOING ALL RIGHT 9302190080 930219 CLINTON'S ECONOMIC PACKAGE GREENSPAN GOT AN OFFER HE FELT HE COULDN'T REFUSE WASHINGTON WHAT WAS ALAN GREENSPAN CHAIRMAN OF THE PROUDLY INDEPENDENT FEDERAL RESERVE DOING SITTING NEXT TO FIRST LADY HILLARY RODHAM CLINTON WHILE HER HUSBAND WAS ADDRESSING CONGRESS SHE INVITED HIM AND EVEN THE CHAIRMAN OF THE FED DOESN'T TURN DOWN A CALL FROM THE FIRST LADY HE JUST DIDN'T FEEL THAT WHEN YOU GET AN INVITATION FROM THE PRESIDENT OR THE FIRST LADY THAT YOU CAN SAY NO' A FED SPOKESMAN SAID IT'S A COMMAND PERFORMANCE HE FELT HE HAD TO DO IT THE SPOKESMAN WOULDN'T COMMENT ON WHETHER MR GREENSPAN'S APPEARANCE WOULD LEAD TO THE PERCEPTION THAT THE FED ISN'T QUITE SO INDEPENDENT AS IT SAYS IT IS AND MR GREENSPAN HIMSELF WOULDN'T DISCUSS THE MATTER MR CLINTON AND HIS ECONOMIC ADVISERS HAVE BEEN EMPHASIZING THEIR DESIRE FOR COOPERATION FROM THE FED MR GREENSPAN A LONGTIME ADVISER TO REPUBLICAN PRESIDENTS GOT THE INVITATION FROM MRS CLINTON ON TUESDAY THE SPOKESMAN SAID AND ON WEDNESDAY NIGHT NATIONAL TELEVISION SHOWED THE FED CHAIRMAN SEATED BETWEEN MRS CLINTON AND THE VICE PRESIDENT'S WIFE TIPPER GORE JOHN SCULLEY A CLINTON BACKER AND CHAIRMAN OF APPLE COMPUTER INC SAT ON MRS CLINTON'S OTHER SIDE 9302190079 930219 POLITICS & POLICY PRESIDENT'S PLAN DRAWS SUPPORT FROM THE PUBLIC DESPITE REPUBLICAN SNIPING RESPONSE TO PROPOSALS IS GENERALLY FAVORABLE BY DAVID WESSEL AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL BILL CLINTON'S ECONOMIC PLAN THOUGH CRITICIZED IN SOME QUARTERS AS A REPACKAGING OF THE OLD TAXANDSPEND APPROACH RECEIVED A FAIRLY AUSPICIOUS RECEPTION ON ITS FIRST DAY IN WASHINGTON DEMOCRATS GENERALLY UNITED BEHIND THEIR PRESIDENT DESPITE A FEW MUMBLED MISGIVINGS REPUBLICANS LAUNCHED PREDICTABLE ATTACKS BUT DIDN'T COALESCE BEHIND A CLEAR ALTERNATIVE AND THE REACTIONS FROM THE PUBLIC AND FROM FINANCIAL MARKETS WERE ABOUT AS GOOD AS THE CLINTON WHITE HOUSE HAD HOPED FOR QUICK POLLS THOUGH NOT ALWAYS RELIABLE WERE ONE INDICATION THAT THE PRESIDENT SUCCEEDED IN HIS WEDNESDAY NIGHT SPEECH NEARLY 80 OF THE 514 ADULTS SURVEYED BY CABLE NEWS NETWORK AND USA TODAY AFTER THE SPEECH SAID THEY SUPPORT THE PRESIDENT MOST OF THEM ENTHUSIASTICALLY AN ABC/WASHINGTON POST POLL FOUND THAT 80 OF 591 ADULTS QUESTIONED THINK THE PLAN WILL HELP THE ECONOMY SIGNIFICANTLY BOTH POLLS FOUND A SUBSTANTIAL MAJORITY BELIEVE THAT THE PRESIDENT IS PROPOSING TO RAISE TAXES IN FAIR MANNER FINANCIAL MARKETS ALSO WERE RECEPTIVE THE BOND MARKET CONTINUED TO PULL DOWN LONGTERM INTEREST RATES JUST AS THE WHITE HOUSE HAD HOPED THE STOCK MARKET HAD AN UPANDDOWN DAY BUT ENDED DOWN JUST A BIT IN ST LOUIS PRESIDENT CLINTON FOUND A COMPACT BUT ENTHUSIASTIC CROWD AT UNION STATION MOST OF THE PEOPLE WERE SUPPORTIVE WAVING MINIATURE AMERICAN FLAGS AND SPORTING SIGNS THAT READ OUR CHILDREN'S FUTURE STARTS TODAY AND NO GUTS NO GLORY BUT THERE WERE SOME DOUBTERS ONE OF WHOM WAVED A SIGN THAT READ TAXES TAXES TAXES ANOTHER PLACARD SAID BLUNTLY BILL LIED MR CLINTON INSISTED THAT HIS SPENDING PLAN ISN'T THE OLD DEMOCRATIC TAXANDSPEND I DO PROPOSE TO SPEND SOME MORE MONEY BUT NOT IN THE OLD WAY HE SAID ADDING THAT HIS SPENDING WAS DESIGNED TO INVEST IN FUTURE ECONOMIC GROWTH WHILE TAKING CREDIT FOR THOSE SPENDING INCREASES MR CLINTON ALSO CAST HIMSELF AS TOUGH ON OUTLAYS POINTING TO HIS OWN STAFF CUTS THE GOVERNMENT EMPLOYEES' PAY FREEZE AND THE 150 SPENDING REDUCTIONS HE HAS PROPOSED WE NEED YOU TO HOLD OUR FEET TO THE FIRE NO RAISING TAXES UNLESS THERE IS A CUT IN SPENDING HE SAID MANY IN HIS AUDIENCE LIKED WHAT THEY HEARD RAH RAH RAH SOMETHING NEW SOMETHING FRESH EXHORTED PAUL BELL A 53YEAROLD CONSTRUCTION CONTRACTOR FROM ROCKFORD ILL HE SAID HE CHEERED THE PRESIDENT'S SPEECH DESPITE THE TAX INCREASES IT DOESN'T BOTHER ME IF IT SOLVES THE PROBLEM HE SAID THE GOOD NEWS IS THE GUY REALLY HAS SOME BRAINS SAID DOUGLAS DOWD 40 A LOCAL LAWYER I THOUGHT HIS PROPOSAL WAS GREAT IT COMBINED ECONOMIC GROWTH WITH DEFICIT REDUCTION NOT EVERYONE WAS HAPPY THOUGH I DIDN'T GET EXCITED ABOUT HIS SPEECH AT ALL HE LAID OUT HIS INTENT FROM THE BEGINNING TO RAISE TAXES GRUMBLED DONALD COLLIER 61 A RETIRED COMMERCIALLOAN OFFICER ADDED JEFFREY HEYDT 34 A DISAPPOINTED CLINTON VOTER IT'S A COMPLETE FLIPFLOP FROM WHAT HE SAID IN THE CAMPAIGN VETERAN POLITICIANS SAID THE ODDS OF MR CLINTON'S GETTING AN REASONABLE FACSIMILE OF HIS PLAN THROUGH CONGRESS WERE FAIRLY GOOD AS LONG AS THE DEMOCRATS STAY BEHIND HIM THE DEMOCRATS WILL SUPPORT IT BECAUSE THEY DON'T KNOW WHAT ELSE TO DO SAID PAUL TSONGAS THE FORMER DEMOCRATIC SENATOR FROM MASSACHUSETTS IF YOU LOOK AT THE REPUBLICANS THEY COULDN'T COME UP WITH AN ALTERNATIVE IF THEIR LIVES DEPENDED ON IT THEY WILL BE REDUCED TO A KIND OF GREEK CHORUS ON THE SIDELINES I KNOW YOU'RE WONDERING IF WE HAVE A PLAN REPUBLICAN SEN PETE DOMENICI OF NEW MEXICO TOLD TREASURY SECRETARY LLOYD BENTSEN AT A SENATE HEARING WE DON'T BUT WE MIGHT JUST START BY THROWING OUT THIS IF YOU'RE REALLY SERIOUS ABOUT CUTTING THE DEFICIT WHY DON'T WE JUST START BY NOT ADDING THE NEW PROGRAMS YESTERDAY AT LEAST DEMOCRATS WERE GENERALLY LAVISH IN THEIR PRAISE OF THE PRESIDENT'S PLAN AND HIS SPEECH BY LINKING THE SACRIFICE OF BUDGETDEFICIT REDUCTION WITH THE PROMISES OF A HEALTHIER ECONOMY AND EXPANDED OPPORTUNITY THEY SAID THE PROGRAM'S BREADTH AND BOLDNESS WILL MAKE IT EASIER TO PASS WE DEMOCRATS HAVE TO GOVERN SAID REP CHARLES STENHOLM OF TEXAS AN INFLUENTIAL DEMOCRATIC CONSERVATIVE THE BIGGEST DANGER WAS PUTTING ALL THIS ENERGY AND EFFORT INTO THIS AND COMING OUT WITH A POP GUN SOMETHING NOT WORTH SACRIFICING FOR SAID STUART EIZENSTAT A FORMER CARTER WHITE HOUSE AIDE THE FACT THAT HE CLEARLY DID CROSS THAT THRESHOLD PUTS HIS PRESIDENCY ON A VERY GOOD FOOTING BUT TALKING TO REPORTERS LAST NIGHT AFTER AN APPEARANCE AT A HIGH SCHOOL IN AUSTIN TEXAS MR BENTSEN ACKNOWELDGED THAT SOME CONSERVATIVE DEMOCRATS COULD BOLT WE'VE NEVER HAD THE DISCIPLINE OF THE REPUBLICANS HE SAID HE EXPRESSED SOME CONCERN ABOUT THE HOSTILE REPUBLICAN REACTION TO THE PLAN BUT SAID HE STILL HOPES TO ENLIST AT LEAST SOME OF THEM THERE WAS HOWEVER SUBSTANTIAL CONFUSION ABOUT SOME KEY ELEMENTS OF THE CLINTON PLAN YESTERDAY THE PRESIDENT HIMSELF FOR INSTANCE SAID WEDNESDAY NIGHT THAT HIS NEW 36 TOP MARGINAL INCOMETAX RATE WOULD KICK IN AT 180000 WHAT HE DIDN'T EXPLAIN WAS THAT HE WAS REFERRING TO GROSS INCOME BEFORE DEDUCTIONS THE 36 TAX RATE KICKS IN AT TAXABLE INCOME AFTER DEDUCTIONS OF 140000 FOR COUPLES AND 115000 FOR INDIVIDUALS THE TREASURY DEPARTMENT CONFIRMED SIMILARLY MR CLINTON'S ATTEMPT TO DIVIDE HIS PLAN INTO THREE PARTS SHORTRUN STIMULUS LONGRUN INVESTMENT AND LONGRUN DEFICIT REDUCTION PRODUCED A CACAPHONY TAKING INTO ACCOUNT ALL THE PROPOSALS TAX CUTS AND TAX INCREASES SPENDING CUTS AND SPENDING INCREASES MR CLINTON PROPOSES TO INCREASE THE BUDGET DEFICIT IN THE CURRENT FISCAL YEAR BY 13 BILLION FROM WHAT IT WOULD BE IF CURRENT POLICIES WERE LEFT IN PLACE AND INCREASE IT BY 38 BILLION IN THE FISCAL YEAR THAT BEGINS OCT 1 OVER THE NEXT FOUR YEARS FISCAL 1994 THROUGH 1997 THE DEFICIT WOULD BE A TOTAL OF 324 BILLION LESS THAN IT OTHERWISE WOULD BE OVER FIVE YEARS IT WOULD BE REDUCED BY 493 BILLION CRITICS PICKED AT THE ESTIMATES SOME COMPLAINED THAT MR CLINTON RELIED TOO MUCH ON TAXES AND TOO LITTLE ON SPENDING CUTS OTHERS ACCURATELY OBSERVED THAT THE DEFICIT WOULD BEGIN GROWING AGAIN IN 1998 EVEN IF MR CLINTON'S PLAN IS ADOPTED EVEN SOME DEMOCRATS WERE UNEASY WITH THE MAGNITUDE OF THE PROPOSED INCREASES IN DOMESTIC SPENDING SEN DAVID BOREN D OKLA QUESTIONED THE WISDOM OF THE 16 BILLION IN SPENDING INCREASES THAT MR CLINTON HOPES TO RUSH THROUGH CONGRESS TO STIMULATE THE ECONOMY THAT'S GETTING THE CART BEFORE THE HORSE HE SAID DEFICIT HAWKS WERE GENERALLY PLEASED THAT MR CLINTON HAD GONE AS FAR AS HE DID IN ATTACKING A BUDGET GAP THAT TURNED OUT TO BE WIDER THAN HE EXPECTED WARREN RUDMAN A FORMER REPUBLICAN SENATOR FROM NEW HAMPSHIRE WHO HAS FORMED A DEFICITFIGHTING COALITION WITH MR TSONGAS SAID HE WOULDN'T HAVE VOTED FOR THE PLAN AS IS BUT WITH A LITTLE MORE REFORM OF FEDERAL BENEFITS HE MIGHT UNFORTUNATELY YOU REALLY CAN'T MEASURE THIS PROGRAM IN TERMS OF ITS DEFICIT REDUCTION UNTIL HIS HEALTHCARE PLAN COMES OUT HE SAID 9302190078 930219 CLINTON SEEKS TO LEVY FEES ON FUTURES TRANSACTIONS WASHINGTON THE CLINTON ADMINISTRATION PROPOSED CHARGING FEES FOR FUTURESEXCHANGE TRANSACTIONS TO RAISE 235 MILLION IN THE NEXT FOUR YEARS A SPOKESWOMAN FOR THE COMMODITY FUTURES TRADING COMMISSION WHICH OVERSEES FUTURES MARKETS SAID SIMILAR FEES WERE PROPOSED IN EACH OF THE LAST THREE YEARS BUT WERE REPEATEDLY QUASHED BY CONGRESS THE FUTURES INDUSTRY ASSOCIATION A TRADE GROUP SAID YESTERDAY IT OPPOSES CHARGING FEES FOR TRANSACTIONS IF THE LATEST PROPOSAL IS APPROVED THE PROJECTED REVENUE WOULD COVER THE CFTC'S ANNUAL BUDGET ITS CURRENT BUDGET TOTALS 473 MILLION AND THE OFFICE OF MANAGEMENT AND BUDGET SAID IT WOULD ASK CONGRESS FOR ONLY A SLIGHT INCREASE FOR THE NEXT FISCAL YEAR SEPARATELY THE ADMINISTRATION SPECIFIED A PROPOSED FEE INCREASE FOR SECURITIES REGISTRATIONS AT THE SECURITIES AND EXCHANGE COMMISSION THE ADMINISTRATION SUGGESTED REGISTRANTS PAY FEES EQUAL TO 1/24 OF 1 OF THE VALUE OF SECURITIES BEING OFFERED UP FROM THE CURRENT 1/32 THE FEE INCREASE COULD PRODUCE NEW REVENUE TOTALING 47 MILLION THIS YEAR UP TO A HIGH OF 54 MILLION IN 1997 THE SEC'S EXECUTIVE DIRECTOR JAMES MCCONNELL ALSO SAID THE AGENCY ASKED FOR A BUDGET OF 270 MILLION FOR THE NEW FISCAL YEAR BUT OMB COUNTERED WITH 255 MILLION BARELY ABOVE THE AGENCY'S CURRENT BUDGET OF 2532 MILLION 9302190077 930219 TECHNOLOGY HEALTH INSURER GROUP SEEKS EMPLOYERDONATION RULE WASHINGTON THE HEALTH INSURANCE ASSOCIATION OF AMERICA CAME OUT IN FAVOR OF REQUIRING ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF HEALTH INSURANCE FOR THEIR WORKERS PRESIDENT CLINTON SUPPORTS THAT IDEA AND IS LIKELY TO INCLUDE SUCH A REQUIREMENT IN THE HEALTHCARE OVERHAUL PLAN HE HAS PROMISED TO SUBMIT TO CONGRESS BY MAY 1 BUT THE HEALTH INSURANCE INDUSTRY HAS LONG OPPOSED REQUIRING EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS FEARING IT WOULD LEAD TO MORE GOVERNMENT INTRUSION INTO THE PRIVATE HEALTHCARE MARKET LAST DECEMBER THE HEALTH INSURANCE INDUSTRY GROUP CREATED A STIR WHEN ITS BOARD REVERSED LONGHELD POSITIONS AND VOTED TO ENDORSE LIMITS ON TAX BREAKS FOR EMPLOYERPROVIDED HEALTH BENEFITS PROPOSALS TO REQUIRE THAT ALL AMERICANS RECEIVE CERTAIN BASIC HEALTH BENEFITS AND UNIFORM REIMBURSEMENT RATES FOR BOTH PRIVATE AND PUBLIC INSURERS YESTERDAY THE ASSOCIATION ANNOUNCED THAT THE BOARD HAD GONE A STEP FURTHER AND DECIDED TO ADVOCATE THAT EMPLOYERS BE REQUIRED TO HELP PAY FOR INSURANCE FOR THEIR EMPLOYEES 9302190076 930219 BUSTAMANTE IS CHARGED WITH ACCEPTING BRIBES WASHINGTON A FEDERAL GRAND JURY CHARGED FORMER REP ALBERT BUSTAMANTE WITH ACCEPTING BRIBES FROM CONSTITUENTS IN EXCHANGE FOR FAVORS INCLUDING THE RENEWAL OF A LUCRATIVE AIR FORCE CONTRACT THE TEXAS DEMOCRAT WAS INDICTED BY A SAN ANTONIO GRAND JURY ON 10 COUNTS THAT ALSO INCLUDED RACKETEERING CONSPIRACY AND BRIBERY ALSO CHARGED WAS HIS WIFE LAWYER REBECCA BUSTAMANTE THE COUPLE WHO LIVE IN SAN ANTONIO COULDN'T BE REACHED FOR COMMENT MR BUSTAMANTE WHO WAS DEFEATED FOR REELECTION TO A FIFTH TERM LAST NOVEMBER WAS CHARGED WITH ACCEPTING 35000 FROM FALCON FOOD & MANAGEMENT SERVICES INC IN 1986 IN EXCHANGE FOR HIS HELP IN OBTAINING AN EXTENSION OF A THREEYEAR CONTRACT TO PROVIDE MEALS FOR THE LACKLAND AIR FORCE BASE IN SAN ANTONIO AT THE TIME MR BUSTAMANTE WAS SERVING ON THE ARMED SERVICES COMMITTEE FALCON FOOD BASED IN SAN ANTONIO WASN'T CHARGED IN THE INDICTMENT AND COULDN'T BE REACHED FOR COMMENT 9302190075 930219 POLITICS & POLICY GOP'S COOL REACTION TO CLINTON PLAN SIGNALS BITTER FIGHT TO REGAIN TAX ISSUE BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HARSH REPUBLICAN REACTION TO PRESIDENT CLINTON'S ECONOMIC PLAN SIGNALS THE START OF A HARDKNUCKLED FIGHT IN WHICH THE GOP HOPES TO REGAIN THE ANTITAX ISSUE BUT MUST FIRST PROVE IT CAN UNITE BEHIND A BUDGET OF ITS OWN A 16 BILLION ECONOMIC STIMULUS BILL DUE ON THE HOUSE FLOOR IN TWO WEEKS WILL BE THE REPUBLICANS' FIRST TARGET THEIR STRATEGY TO PAINT THE DEMOCRATS AS PROFLIGATE SPENDERS AND PICK UP WHERE GEORGE BUSH LEFT OFF WITH IMPLICIT ATTACKS ON MR CLINTON'S CREDIBILITY AND EVEN HIS PATRIOTISM AT A PRIVATE WHITE HOUSE MEETING BEFORE MR CLINTON'S SPEECH WEDNESDAY NIGHT TEXAS REP RICHARD ARMEY THE NEW CHAIRMAN OF THE HOUSE REPUBLICAN CAUCUS REPORTEDLY WAS SO BLUNT IN ADDRESSING THE PRESIDENT THAT HE PROVOKED A STERN REBUKE FROM THE SENATE PATRIARCH WEST VIRGINIA'S DEMOCRATIC SEN ROBERT BYRD THE SAME TONE SURFACED AGAIN YESTERDAY IN EXCHANGES BETWEEN BUDGET DIRECTOR LEON PANETTA AND HOUSE BUDGET COMMITTEE REPUBLICANS WHO DECRIED MR CLINTON'S TRAIL OF BROKEN CAMPAIGN PROMISES THE TIME HAS COME TO PUT UP OR SHUT UP WITH REGARD TO SPENDING ALTERNATIVES ANSWERED MR PANETTA WHO ONCE HEADED THE SAME PANEL POINTING HIS FINGER AT THE PANEL'S RANKING REPUBLICAN OHIO REP JOHN KASICH MR PANETTA SAID YOU ARE NOW THE PERFECT EXAMPLE OF THE KIND OF GRIDLOCK THAT PEOPLE ARE TIRED OF BEHIND THE RHETORIC REPUBLICANS FACE MANY OF THE SAME PROBLEMS DEMOCRATS ENCOUNTERED IN CRAFTING A BUDGET OF THEIR OWN OBVIOUSLY THERE IS SENTIMENT FOR A CREDIBLE DEFICITREDUCTION ALTERNATIVE WITHOUT RAISING TAXES SAID MR KASICH IN AN INTERVIEW BUT HE SHIED AWAY FROM COMMITTING HIMSELF TO THE SAME AMBITIOUS GOALS SET BY MR CLINTON NOBODY IS GOING TO WIN OR LOSE BASED ON THE DEFICIT SAID VIN WEBER A FORMER MINNESOTA CONGRESSMAN WITH CLOSE TIES TO THE HOUSE GOP LEADERSHIP WE MIGHT WELL LOSE ELECTIONS IF WE DON'T SUCCESSFULLY RECAPTURE THE TAX ISSUE REP ARMEY AND TEXAS SEN PHIL GRAMM CHAIRMAN OF THE SENATE GOP CAMPAIGN COMMITTEE SPEAK OF CAPPING THE GROWTH OF ALL BENEFIT PROGRAMS EXCEPT SOCIAL SECURITY BUT THAT WOULD BE MORE A MEANS TO FORCE DECISIONS THAN TO MAKE THEM SINCE SUCH A CAP WOULD HAVE TO BE ENFORCED BY TOUGH POLICY DECISIONS THAT WOULD HIT POLITICALLY POPULAR PROGRAMS SPENDING FOR MEDICARE THE HEALTH INSURANCE PROGRAM FOR THE ELDERLY HAS BEEN GROWING AT AN ANNUAL RATE OF 11 NEARLY FOUR TIMES THE COSTOFLIVING INCREASE AND COSTS FOR MEDICAID THE FEDERALSTATE HEALTH PROGRAM FOR THE POOR ARE GROWING AT 14 WHILE REPUBLICANS BELIEVE THEY CAN MAKE MEDICAID MORE EFFICIENT MR CLINTON ALREADY HAS CLAIMED HE WOULD REALIZE MAJOR SAVINGS BY CURBING MEDICARE PAYMENTS TO DOCTORS AND PHYSICIANS THAT SUGGESTS THAT THE GOP EITHER WOULD HAVE TO CUT MEDICARE MUCH DEEPER OR FIND SAVINGS ELSEWHERE TO AVOID THE TAX INCREASES THE PRESIDENT RECOMMENDS FACED WITH SUCH DIFFICULTIES REPUBLICANS WILL TAKE FIRST AIM AT DOMESTIC SPENDING INCREASES MR CLINTON IS PROPOSING IN THE NAME OF STIMULATING THE ECONOMY AND INVESTING IN AN ARRAY OF INITIATIVES FOR CHILDREN AND RESEARCH AMONG OTHERS AT LEAST 117 BILLION COULD BE SAVED BY SIMPLY DENYING ALL OF THESE INCREASES THROUGH FISCAL 1997 THAT BY ITSELF WOULD WIPE OUT THE NEED FOR NEARLY HALF OF THE 249 BILLION MR CLINTON WOULD RAISE BY NEW TAXES IN THE SAME PERIOD IN ATTEMPTING TO DERAIL THE STIMULUS BILL REPUBLICANS WILL HIT HARD ON THE RELATIVE MAGNITUDE OF SPENDING INCREASES AND REDUCTIONS THAT MR CLINTON HAS PROPOSED FOR THE NEXT 18 MONTHS LEADING UP TO NEXT YEAR'S CONGRESSIONAL ELECTIONS THROUGH FISCAL 1994 WHICH ENDS SEPT 30 1994 THE ADMINISTRATION'S INITIATIVES WOULD ADD A TOTAL OF 23 BILLION IN SPENDING WHILE SAVING ABOUT 17 BILLION THAT MEANS TAX INCREASES WOULD BEAR THE BURDEN OF THE INITIAL DEFICIT REDUCTION IN THE PRESIDENT'S PLAN SEN GRAMM A MEMBER OF THE SENATE APPROPRIATIONS COMMITTEE DISMISSED THE LARGER STIMULUS BILL AS LITTLE MORE THAN PORK BARREL SPENDING AND A BOONDOGGLE OF GIVEAWAYS TO BIG CITY MAYORS THAT HELPED ELECT THE PRESIDENT MR GRAMM ADMITTED LATER THAT HE WAS COUNTING MANY SUBURBS IN HIS ESTIMATE THAT HALF THE MONEY WOULD GO TO URBAN AREAS AND AT THE HOUSE WAYS AND MEANS COMMITTEE YESTERDAY REPUBLICANS CHASTISED DEMOCRATS FOR NOT FINDING OFFSETTING SPENDING CUTS TO PAY FOR A PROPOSED 57 BILLION PACKAGE OF UNEMPLOYMENT BENEFITS THE WHITE HOUSE ADMITS THE TAX PACKAGE WOULD BE VULNERABLE IF THE ADMINISTRATION ISN'T SEEN AS CREDIBLE ON DEFICIT REDUCTION BUT BY THE SAME TOKEN REPUBLICANS RISK HURTING THEMSELVES BY ADOPTING TOO HARSH A STYLE A LIST OF SATIRICAL TALKING POINTS HANDED OUT BY THE HOUSE REPUBLICAN CAUCUS MOCKED MR CLINTON FOR INVOKING PATRIOTISM IN REFERENCE TO HIS ECONOMIC PLAN PATRIOTISM WAS AT ONE TIME THE WILLINGNESS TO BLEED AND DIE FOR ONE'S COUNTRY SAID THE FLIER IMPLICITLY RECALLING MR CLINTON'S RECORD OF AVOIDING THE DRAFT DURING THE VIETNAM WAR UNDER THE NEW PRESIDENT IT SAYS PATRIOTISM IS THE WILLINGNESS TO BE BLED BY ONE'S COUNTRY 9302190074 930219 TWO MANUFACTURERS INDICTED ON CHARGES OF SELLING DILUTED JUICE GRAND RAPIDS MICH AP TWO JUICE MANUFACTURERS WERE INDICTED ON CHARGES THEY SOLD MILLIONS OF CARTONS OF HIGHLY DILUTED ORANGE JUICE CONTAINING AN UNAPPROVED PRESERVATIVE THE JUICE WAS SOLD IN SEVERAL STATES INCLUDING TO SOME SCHOOL DISTRICTS THE INDICTMENT SAID THE JUICE WAS PACKED UNDER AT LEAST 23 LABELS AND SOLD FROM 1979 TO 1991 WHEN INVESTIGATORS FOUND EVIDENCE OF ADULTERATION US ATTORNEY JOHN SMIETANKA SAID THE JUICE WAS MADE AND DISTRIBUTED BY PENINSULAR PRODUCTS CO OF LANSING AND FLAVOR FRESH FOODS CORP OF CHICAGO IT CONTAINED LARGE AMOUNTS OF BEET SUGAR CITRIC AND AMINO ACIDS AND ORANGE PULPWASH BUT WAS SOLD AS ORANGE JUICE FROM CONCENTRATE MR SMIETANKA SAID THE ADULTERATED PRODUCTS APPARENTLY DIDN'T POSE A HEALTH RISK BUT SOME OF THE JUICE CONTAINED THE ANTIBIOTIC PRESERVATIVE NATAMYCIN WHICH HASN'T BEEN TESTED FOR USE IN BEVERAGES AND ISN'T APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR SUCH USE SAID AN FDA OFFICIAL IN DETROIT THE SEVEN INDIVIDUALS NAMED IN THE INDICTMENT EACH ARE CHARGED WITH CONSPIRACY TO VIOLATE THE FEDERAL FOOD DRUG AND COSMETIC ACT AND WITH MAIL AND WIRE FRAUD IF CONVICTED EACH COULD BE SENTENCED TO UP TO 75 YEARS IN PRISON AND FINED UP TO 20 MILLION 9302190073 930219 BUSINESS BRIEF MALAYAN UNITED INDUSTRIES BHD PRETAX PROFIT CLIMBS 11 DESPITE SLOWDOWN AT UNIT MALAYAN UNITED INDUSTRIES BHD A FINANCIAL PROPERTY AND CEMENT GROUP REPORTED AN 11 RISE IN 1992 GROUP PRETAX PROFIT SLOWED BY INTERRUPTED CEMENTMAKING OPERATIONS PRETAX PROFIT TOTALED 914 MILLION MALAYSIAN DOLLARS US348 MILLION UP FROM M824 MILLION REVENUE ROSE 32 TO M646 MILLION THE COMPANY SAID IN KUALA LUMPUR THAT OUTPUT DROPPED AT ITS CEMENTMAKING ASSOCIATED COMPANY DURING CONSTRUCTION TO EXPAND PRODUCTION FACILITIES HAMPERING PROFIT GROWTH HOWEVER WITH THE CEMENTPLANT EXPANSION LARGELY COMPLETED AND THE CONTINUED GROWTH OF THE MALAYSIAN ECONOMY MUI SAID IT EXPECTS TO BE ABLE TO ACHIEVE SATISFACTORY PERFORMANCE IN 1993 9302190072 930219 INTERNATIONAL BRIEF SE BANKEN PRELIMINARY OPERATING LOSS FOR '92 PUT AT 7134 MILLION SWEDEN'S LEADING BANKING GROUP SKANDINAVISKA ENSKILDA BANKEN KNOWN AS SE BANKEN REPORTED A PRELIMINARY OPERATING LOSS OF 53 BILLION KRONOR 7134 MILLION FOR 1992 CITING SOARING CHARGES FOR COVERING BAD DEBTS THE COMPANY WILL CHARGE 109 BILLION KRONOR AGAINST EARNINGS TO COVER CREDIT LOSSES MORE THAN DOUBLE THE 48 BILLION KRONOR CHARGED FOR 1991 THE PRELIMINARY OPERATING LOSS REVERSES A YEAREARLIER OPERATING PROFIT OF 23 BILLION KRONOR IN RESPONSE TO THE ANNOUNCEMENT SWEDEN'S MINISTRY OF FINANCE SAID IT WOULD TAKE ALL NECESSARY MEASURES TO PRESERVE THE STABILITY OF THE PAYMENT SYSTEM AND THAT THE BANK'S COMMITMENTS WILL BE FULFILLED ON A TIMELY BASIS 9302190071 930219 MARKETING BRIEF LANG COMMUNICATIONS COMPANY IS BUYING BACK OWNERSHIP OF 3 MAGAZINES WOMEN'S MAGAZINE PUBLISHER LANG COMMUNICATIONS SAID IT IS REGAINING COMPLETE OWNERSHIP OF THREE OF ITS TITLES WITH THE AID OF A CAPITAL INFUSION FROM SANDLER MEDIA GROUP OF NEW YORK THE AGREEMENT WILL ENABLE LANG BASED IN NEW YORK TO BUY TIME WARNER INC'S 50 INTEREST IN WORKING WOMAN AND WORKING MOTHER MAGAZINES ACQUIRED PRIOR TO TIME INC'S MERGER WITH WARNER COMMUNICATIONS AS WELL AS A 30 STAKE IN THE TEEN MAGAZINE SASSY HELD BY CITICORP VENTURE CAPITAL PARTNERS DALE W LANG WILL REMAIN CHAIRMAN AND MANAGING PARTNER OF LANG COMMUNICATIONS WHICH ALSO OWNS MS MAGAZINE ALTHOUGH CLOSELY HELD LANG WENT INTO THE 5050 SPLIT WITH TIME IN 1987 IN THE LAST YEAR IT HAS ACTIVELY SOUGHT A PARTNER TO FINANCE A BUYOUT OF THE TITLES SAID A SPOKESWOMAN THE LANG INVESTMENT IS SANDLER'S FIRST FORAY INTO THE MAGAZINE WORLD ALTHOUGH IT HAS OVER 600 MILLION INVESTED IN THE COMMUNICATIONS INDUSTRY APPLYING THE CREATIVITY AND HIGH ENERGY OF LANG'S PEOPLE TO THESE FOUR WELLPOSITIONED MAGAZINES MAKES US VERY OPTIMISTIC SAID JOHN KORNREICH GENERAL PARTNER AT SANDLER 9302190070 930219 TECHNOLOGY BRIEF WARNERLAMBERT CO FDA PANEL RECOMMENDS EXPANDED USE FOR PRODUCT WARNERLAMBERT CO MORRIS PLAINS NJ SAID AN ADVISORY PANEL OF THE FOOD AND DRUG ADMINISTRATION UNANIMOUSLY RECOMMENDED EXPANDED USE OF THE COMPANY'S BLOODPRESSURE DRUG ACCUPRIL TO TREAT CONGESTIVE HEART FAILURE ACCUPRIL AN ANGIOTENSINCONVERTING ENZYME INHIBITOR RECEIVED FDA APPROVAL FOR TREATMENT OF HYPERTENSION IN NOVEMBER 1991 THE DRUG IS APPROVED FOR USE IN MORE THAN 40 COUNTRIES MOSTLY FOR TREATMENT OF BOTH HYPERTENSION AND CONGESTIVE HEART FAILURE THE DRUG IS MARKETED BY WARNERLAMBERT'S PARKE DAVIS DIVISION ALTHOUGH SEVERAL OTHER MAJOR COMPANIES ALREADY HAVE COMPETING ACE INHIBITOR DRUGS ON THE MARKET WARNERLAMBERT SAID ACCUPRIL HAS BECOME THE MOST SUCCESSFUL OF THE SECOND GENERATION OF ACE INHIBITORS ITS WORLDWIDE SALES LAST YEAR WERE MORE THAN 100 MILLION AND THE COMPANY EXPECTS ANNUAL SALES TO SURPASS 250 MILLION IN JUST A FEW YEARS ACE INHIBITOR DRUGS ACT BY BLOCKING THE ENZYME RESPONSIBLE FOR PRODUCING ANGIOTENSIN II A POWERFUL CONSTRICTOR OF BLOOD VESSELS 9302190069 930219 ABREAST OF THE MARKET STOCKS END MIXED AFTER REACTION TO CLINTON PLAN STIRS WIDE SWINGS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED REFLECTING ASSORTED REACTIONS TO PRESIDENT CLINTON'S ECONOMIC PROGRAM SORTING OUT WHAT THE PROGRAM MEANS FOR INVESTORS PREOCCUPIED THE MARKET SENDING SHARE PRICES SURGING AND THEN PLUNGING DURING THE SESSION THE DOW JONES INDUSTRIAL AVERAGE WHICH SWUNG 80 POINTS FROM PEAK TO TROUGH ENDED 10 POINTS LOWER AT 330219 MANY MORE STOCKS ROSE THAN FELL DURING THE DAY HOWEVER ADVANCERS BEAT DECLINERS 1040 TO 878 NEW YORK STOCK EXCHANGE VOLUME TOTALED 309420000 SHARES UP FROM WEDNESDAY'S 287180000 STOCKS SHOT HIGHER AT THE OPENING BELL LARGELY ON THE STRENGTH OF A SOARING BOND MARKET AND BUYING FROM SHORTTERM TRADERS LOOKING FOR QUICK PROFITS EARLY ANALYSIS OUT OF WALL STREET HELD THAT THE PRESIDENT HAD SAID LITTLE IN HIS ADDRESS WEDNESDAY NIGHT THAT HADN'T BEEN KNOWN TUESDAY WHEN THE MARKET PLUNGED BUT BY EARLY AFTERNOON THE TALK ON TRADING DESKS HAD TURNED TO QUESTIONS ABOUT WHETHER MR CLINTON HAD ACCOUNTED FOR ALL OF HIS PROPOSED PROGRAMS WITH HIS 30 BILLION SPENDING PACKAGE THE DOUBTS SENT THE MARKET INTO A QUICK TAILSPIN SINKING THE INDUSTRIAL AVERAGE TO ABOUT A 45POINT LOSS THE RUMOR GOING AROUND WAS THAT CLINTON WAS WRONG ON THE COST OF THE NEW PROGRAMS SAID JACK SOLOMON TECHNICAL ANALYST AT BEAR STEARNS BUT MR SOLOMON SAID THE PLUNGE WAS A HEALTHY PURGATIVE FOR THE STOCK MARKET EUGENE PERONI JR DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT SAID YESTERDAY'S ACTION IS CHARACTERISTIC OF A MARKET PROBING FOR SUPPORT FOLLOWING A SHARP SELLOFF SUCH AS TUESDAY'S 8294POINT DROP IN THE INDUSTRIAL AVERAGE SOME WINNERS EMERGED IN THE MARKET AS A RESULT OF THE PRESIDENT'S SPEECH MOST NOTABLY TECHNOLOGY STOCKS REBOUNDED SHARPLY MR CLINTON MENTIONED PLANS FOR TECHNOLOGY INVESTMENT AS PART OF HIS ECONOMIC PROGRAM DIGITAL EQUIPMENT JUMPED 1 3/8 TO 44 MOTOROLA ROSE 1 1/4 TO 55 3/4 COMPAQ COMPUTER CLIMBED 2 7/8 TO 47 1/2 AND HEWLETTPACKARD ROSE 1 3/8 TO 73 5/8 MERRILL LYNCH RAISED ITS RATING ON HEWLETTPACKARD'S STOCK FOLLOWING THE COMPANY'S STRONG EARNINGS REPORT WEDNESDAY SOME TRADERS WARNED THAT TODAY'S SESSION COULD BRING MORE VOLATILITY BECAUSE OF THE MONTHLY EXPIRATION OF STOCKINDEX FUTURES AND OPTIONS THE APPROACH OF THE EXPIRATIONS WAS MENTIONED BY SOME MARKET WATCHERS AS A CONTRIBUTING CAUSE FOR YESTERDAY'S PRICE SWINGS SHARES OF STUDENT LOAN MARKETING ASSOCIATION WERE THE MOST VISIBLE CASUALTY OF THE PRESIDENT'S SPEECH SALLIE MAE PLUNGED 9 3/8 TO 47 1/4 ON VOLUME OF MORE THAN 47 MILLION SHARES MR CLINTON'S PLAN CALLS FOR PHASING IN A SYSTEM OF DIRECT FEDERAL STUDENT LOANS BY 1997 ACCORDING TO EDUCATION DEPARTMENT OFFICIALS A MOVE THAT WOULD MAKE SALLIE MAE OBSOLETE IN ITS CURRENT FORM PACIFICORP FELL 1 7/8 TO 17 1/8 AFTER REPORTING THAT ITS FOURTHQUARTER PROFIT FROM CONTINUING OPERATIONS FELL TO THREE CENTS A SHARE FROM 46 CENTS A YEAR AGO THE COMPANY CUT ITS QUARTERLY DIVIDEND TO 27 CENTS A SHARE FROM 385 CENTS PACIFICORP'S 83OWNED NERCO UNIT WHICH ALSO REPORTED WEAK EARNINGS YESTERDAY GAINED 1 1/4 TO 11 1/2 HOWEVER THE COMPANY IS TO BE ACQUIRED BY KENNECOTT A UNIT OF RTZ CORP FOR 12 A SHARE IN CASH SOME HOSPITAL STOCKS CONTINUED TO SLIDE ON CONCERNS THAT MR CLINTON'S HEALTH CARE CHANGES WILL SQUEEZE THEIR PROFITS HEALTHTRUST LOST 7/8 TO 13 3/4 AND HCAHOSPITAL CORP OF AMERICA DROPPED 1 1/8 TO 16 5/8 MNC FINANCIAL GAINED 1 3/8 TO 14 1/4 AFTER NATIONSBANK SAID IT WILL EXERCISE ITS OPTION TO BUY MNC FOR 1517 A SHARE THE MOVE COMES AFTER MNC REVISED ITS FOURTHQUARTER PROFIT TO 85 CENTS A SHARE FROM THE PREVIOUSLY REPORTED 31 CENTS A SHARE BECAUSE OF AN ACCOUNTING CHANGE NATIONSBANK ADDED 1/8 TO 51 1/8 SHAWMUT NATIONAL GAINED 1 1/4 TO 20 1/8 MOODY'S INVESTORS SERVICE UPGRADED ITS RATING ON THE COMPANY'S DEBT AMERICAN STOCK EXCHANGE VOLUME TOTALED 16730000 SHARES COMPARED WITH 15540000 WEDNESDAY THERE WERE 273 ISSUES ADVANCING 248 DECLINING AND 220 UNCHANGED 9302190068 930219 WORLD MARKETS EUROPEAN STOCKS GAIN IN WAKE OF CLINTON PLAN AS FEARS FADE AND HOPES RISE FOR LOWER RATES A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES WERE PROPELLED HIGHER ON EUROPEAN BOURSES THURSDAY AS WORRIES ABOUT PRESIDENT CLINTON'S ECONOMIC PLANS DIMINISHED AND EXPECTATIONS OF LOWER INTEREST RATES GREW SOME MARKETS ANTICIPATED THAT IF INVESTORS DECIDE TO MOVE THEIR MONEY TO AVOID HIGHER US TAXES THIS COULD HELP THE CONTINENT'S MARKETS IN LONDON STOCKS ROSE ON THE CLINTON PLAN TO CUT THE US DEFICIT AND ON STRONGERTHANEXPECTED BRITISH ECONOMIC DATA AND CORPORATE EARNINGS FRANKFURT PRICES GAINED ON RELIEF THAT WALL STREET STABILIZED AFTER ITS PLUNGE AND THAT THE CLINTON SPEECH DIDN'T CONTAIN ANY SURPRISES BUT INVESTORS IN JAPAN WERE LARGELY UNSWAYED BY PRESIDENT CLINTON'S PROPOSALS FOR THE US ECONOMY AND TOKYO STOCKS ENDED MIXED THURSDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 237 POINTS TO 28377 THE FT 30STOCK INDEX GAINED 216 POINTS TO 21972 VOLUME WAS 6364 MILLION SHARES COMPARED WITH 6186 MILLION SHARES A DAY EARLIER THE CLINTON PRESENTATION SET THE TONE FOR THE LONDON MARKET AS INVESTORS INTERPRETED THE PROPOSED US PRIORITIES AS BULLISH FOR BRITISH STOCKS WITH LOWER EUROPEAN INTEREST RATES AND AN IMPROVING US ECONOMY A SMALLER US BUDGET DEFICIT COULD PROMPT LOWER YIELDS FOR BONDS GLOBALLY WHICH WOULD BENEFIT EQUITIES AND IF BRITAIN'S CURRENCY STABILIZES LONDON SHARES WOULD BECOME MORE ATTRACTIVE TO FOREIGN FUNDS AMONG OTHER FACTORS BOOSTING LONDON STOCKS YESTERDAY WERE REPORTS ON BRITISH UNEMPLOYMENT WHICH ROSE ONLY HALF AS MUCH AS EXPECTED IN JANUARY AND ON BANK LENDING WHICH ROSE AT A PACE TWICE AS FAST AS ANTICIPATED FOLLOWING THE PREVIOUS DAY'S REPORT THAT BRITISH RETAIL SALES ROSE LAST MONTH IN FRANKFURT THE DAX 30STOCK INDEX ROSE 19 POINTS TO 167226 OR 101 POINT OFF THE INTRADAY HIGH PRICES OPENED FIRMER AND CLOSED SHARPLY HIGHER ON A LASTMINUTE BUYING SCRAMBLE THE PUSH STEMMED PARTLY FROM COVERING OF SHORT OR OVERSOLD POSITIONS TAKEN BEFORE MR CLINTON OUTLINED HIS PLANS IN THE ABSENCE OF NEGATIVE REACTION TO THE CLINTON PROGRAM IN FRANKFURT INVESTORS' CONTINUING OPTIMISM WAS ATTRIBUTED TO THE PERCEPTION THAT THE GERMAN CENTRAL BANK WILL CUT INTEREST RATES PERHAPS IN A MONTH IN PARIS SHARES RALLIED IN RESPONSE TO THE CLINTON PROPOSALS AND TO ENCOURAGING US ECONOMIC INDICATORS AMSTERDAM AND ZURICH PRICES ROSE IN LINE WITH THE EUROPEAN TREND ALSO BUOYED VARIOUSLY BY EASED DOMESTIC INTEREST RATES A FIRMER DOLLAR AND WALL STREET'S BRIGHT OPENING YESTERDAY BRUSSELS STOCKS GAINED ON A STRONGER DOLLAR AND A POSITIVE REACTION TO THE CLINTON PACKAGE PARTICULARLY PLANS TO CUT THE US DEFICIT MILAN SHARES ENDED BROADLY HIGHER IN ACTIVE TRADING AS STRENGTH IN THE AUTO SECTOR SPILLED INTO THE REST OF THE MARKET MADRID STOCKS' GAINS RESULTED MOSTLY FROM TECHNICAL FACTORS STOCKHOLM EQUITIES OPENED WEAKLY ON SOFT CORPORATE EARNINGS BUT RECOVERED IN HEAVY TRADING ON A FIRMER DOLLAR DECLINING SWEDISH INTEREST RATES AND GAINS IN MAJOR MARKETS ABROAD IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 9331 POINTS WEDNESDAY FELL 2749 TO 1698214 ON FRIDAY THE NIKKEI EASED 2508 POINTS TO CLOSE THE MORNING SESSION AT 1695706 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES UP FROM 2074 MILLION SHARES ON WEDNESDAY GAINERS OUTNUMBERED RETREATING ISSUES 547395 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 094 POINT WEDNESDAY SLIPPED 015 TO 129312 THE NIKKEI MOVED HIGHER IN MORNING TRADING THEN WAFFLED AT HIGHER LEVELS BEFORE ARBITRAGE SELLING IN THE SESSION'S FINAL MINUTES PUSHED THE INDEX BELOW 17000 TO ERASE INTRADAY GAINS AS THE YEN WEAKENED AGAINST THE DOLLAR BLUECHIP EXPORTERS WHICH HAVE BEEN THE BIG LOSERS IN RECENT SESSIONS ON THE YEN'S STRENGTH WERE MIXED PUBLIC PENSION FUNDS CONTINUED TO BUY STOCKS AT LOWER PRICES EASING FEARS THAT THIS SUPPORT ACTION COULD DISSIPATE INDIVIDUAL AND INSTITUTIONAL INVESTORS ALSO JOINED IN THE BUYING WHICH PROMPTED THE MODERATE PICKUP IN TURNOVER IN SYDNEY PRICES FIRMED AFTER THE MARKET DECIDED PRESIDENT CLINTON'S ECONOMIC STATEMENT PROBABLY WOULDN'T SPARK A SLUMP ON WALL STREET MUCH OF THE PACKAGE HAD BEEN ANTICIPATED AND FACTORED INTO THE AUSTRALIAN MARKET THOUGH OIL AND GAS SHARES LOST GROUND ON CONCERNS ABOUT MR CLINTON'S BROADBASED ENERGY TAX AND A DAYEARLIER DECLINE IN WORLD OIL PRICES IN HONG KONG AN AFTERNOON BUYING WAVE PUSHED SHARES UP TO ANOTHER SIZZLING FINISH AS HOPES REMAINED THAT CHINA AND BRITAIN WOULD RESOLVE THEIR DISCUSSIONS ABOUT THE BRITISH COLONY'S POLITICAL SITUATION BUT AFTER THE MARKET CLOSED CHINA INDICATED IT WOULDN'T RESUME TALKS UNTIL HONG KONG'S GOVERNMENT ABANDONED ITS DEMOCRATIC REFORM PLAN SINGAPORE PRICES ROSE IN A TECHNICAL REBOUND FROM THE PREVIOUS DAY'S LOSSES TAIPEI SHARES AFTER SCORING SOLID GAINS DROPPED BROADLY ON INDICATIONS THAT THE RULING NATIONALIST PARTY CONSIDERS THE MARKET OVERHEATED AND READY FOR A RETREAT MANILA STOCKS JUMPED ON OPTIMISM RESULTING FROM AN OIL AND GAS DISCOVERY AND FROM REPORTS ON THE KILLING OF A KIDNAPFORRANSOM GANG LEADER SEOUL PRICES TOOK A NOSE DIVE ON THE CONTINUED WORSENING OF MARKET FUNDAMENTALS MARKED BY A DRAINING OF CASH FROM THE MARKET AND BIG MARGIN ACCOUNTS COMING DUE AS WELL AS A HINT THAT THE NEW SOUTH KOREAN GOVERNMENT MIGHT IMPLEMENT SOONER THAN PLANNED A SOCALLED REALNAME ACCOUNTING SYSTEM WHICH BARS THE USE OF FALSE OR BORROWED NAMES AMONG CORPORATE DEVELOPMENTS IN LONDON KLEINWORT BENSON GROUP RALLIED 17 PENCE OR 47 TO 378 PENCE 547 FAR EXCEEDING MARKET EXPECTATIONS THE INVESTMENT BANK'S 1992 PRETAX PROFIT JUMPED 66 TO 463 MILLION 67 MILLION FROM A YEAR EARLIER AS NET BADDEBT CHARGES FELL TO 7 MILLION FROM 39 MILLION IN 1991 KINGFISHER JUMPED 30 OR 57 TO 557 THE RETAILER AGREED TO BUY FINANCIERE DARTY THE 953 OWNER OF DARTY & FILS FRANCE'S LEADING ELECTRICALGOODS RETAILER IN A TRANSACTION THAT VALUES DARTY'S EQUITY AT 560 MILLION KINGFISHER ALSO WILL ASSUME 480 MILLION IN DEBT KINGFISHER WILL ISSUE DARTY'S OWNERS 68 MILLION KINGFISHER SHARES FOR 64 OF THEIR HOLDINGS PAY 207 MILLION IN CASH FOR THE REMAINDER AND MAKE A SIMILAR CASH OFFER FOR THE 47 OF DARTY & FILS NOT OWNED BY FINANCIERE DARTY TO PAY FOR THE DEAL KINGFISHER LAUNCHED A RIGHTS ISSUE OF NEW SHARES TO RAISE 313 MILLION AFTER EXPENSES BY OFFERING SHAREHOLDERS ONE NEW SHARE AT 450 PENCE FOR EVERY SEVEN SHARES ALREADY HELD 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 9302190067 930219 BUSINESS BRIEF PROMUS COS COURT AFFIRMS EARLIER RULING ON HOTEL AND CASINO CASE PROMUS COS MEMPHIS TENN SAID A FEDERAL APPEALS COURT AFFIRMED A LOWERCOURT RULING THAT HAD CLEARED THE COMPANY OF CLAIMS IN A DISPUTE OVER A HOTEL AND CASINO IN ATLANTIC CITY NJ LOUIS WALTER A LOS ANGELES REAL ESTATE DEVELOPER ORIGINALLY HAD SUED HOLIDAY INNS INC A UNIT OF HOLIDAY CORP FROM WHICH PROMUS HAD BEEN SPUN OFF IN 1990 OVER HOLIDAY INNS' PURCHASE IN 1981 OF MR WALTER'S INTEREST IN HARRAH'S MARINA HOTEL CASINO IN ATLANTIC CITY MR WALTER AND HOLIDAY INNS WERE ORIGINALLY 5050 PARTNERS IN THE PROPERTY MR WALTER ALLEGED THAT HOLIDAY INNS HAD BREACHED ITS FIDUCIARY DUTY AND WRONGFULLY INDUCED HIM TO SELL AT AN INADEQUATE PRICE THE SUIT IN PART HAD SOUGHT 64 MILLION IN COMPENSATORY DAMAGES PROMUS HAD ASSUMED RESPONSIBILITY FOR ANY FUTURE LIABILITY RELATED TO THE SUIT AT THE TIME IT WAS SPUN OFF FROM HOLIDAY CORP IN JANUARY 1992 A US DISTRICT COURT IN NEW JERSEY CLEARED PROMUS OF CLAIMS BROUGHT AGAINST THE PREDECESSOR COMPANY MR WALTER COULDN'T BE REACHED FOR COMMENT 9302190066 930219 QUEBEC AGENCY'S STANCE SETS BACK AN OFFER FOR UNIVA BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL THE POWERFUL INSTITUTION THAT MANAGES QUEBEC'S PUBLIC PENSION FUNDS SAID IT DISAGREES WITH A 13 BILLION PROPOSAL BY BLACKSTONE CAPITAL PARTNERS LP AND UNIGESCO INC TO BUY UNIVA INC THE STATEMENT CLOUDED THE DEAL'S PROSPECTS CAISSE DE DEPOTS ET PLACEMENT DU QUEBEC WHICH OWNS 173 OF UNIVA ON A FULLY DILUTED BASIS SAID THE TERMS AND CONDITIONS OF THE OFFER DON'T ALLOW FOR AN OPTIMAL GAIN ON THE SHARES OF QUEBEC'S BIGGEST SUPERMARKET COMPANY IN AN APPARENT REFERENCE TO CONCERN HERE THAT THE SALE MIGHT LEAD TO A BREAKUP OF UNIVA THE CAISSE ALSO POINTEDLY CITED THE LACK OF ASSURANCE CONVEYED BY BLACKSTONE AND UNIGESCO WITH REGARD TO THE ONGOING INTEGRITY OF THE COMPANY UNIVA BETTER KNOWN BY THE NAME OF ITS PROVIGO SUPERMARKETS IS REGARDED AS ONE OF THE SYMBOLS OF THE RISE OF QUEBEC'S FRENCHSPEAKING BUSINESS CLASS SOME QUEBEC NATIONALISTS WORRY THAT BLACKSTONE A NEW YORK INVESTMENT FUND MIGHT SELL ALL OR PART OF ITS STAKE TO SUPERMARKET OPERATORS OUTSIDE THE PROVINCE THAT THEY SAY COULD COST QUEBEC FOOD SUPPLIERS BUSINESS AND JOBS SUCH CONCERNS AREN'T LOST ON THE CAISSE WHICH HAS A DUAL MANDATE OF SEEKING OPTIMUM RETURNS AND CONTRIBUTING TO THE DEVELOPMENT OF QUEBEC'S ECONOMY THE CAISSE ALONE DOESN'T HAVE ENOUGH VOTES TO BLOCK THE PROPOSED TRANSACTION WHICH IS SUBJECT TO APPROVAL BY UNIVA SHAREHOLDERS BUT ANALYSTS HAVE SPECULATED THAT THE CAISSE MIGHT USE ITS CLOUT TO BARGAIN FOR STRICTER ASSURANCES THAT QUEBEC INTERESTS EVENTUALLY WILL REGAIN CONTROL OF UNIVA IN A STATEMENT ISSUED YESTERDAY EVENING BLACKSTONE AND UNIGESCO A MONTREALBASED COMPANY WITH INTERESTS IN THE HARDWARE BUSINESS STRESSED THAT THE PROPOSED TRANSACTION IS DESIGNED TO LEAVE UNIVA'S OPERATIONS INTACT AND THAT UNIGESCO HAS RIGHTS OF FIRST REFUSAL ON ASSET SALES BLACKSTONE HAS INDICATED THAT IT PLANS TO SELL ITS SHARES IN UNIVA TO THE PUBLIC OVER THE NEXT THREE TO SEVEN YEARS ENABLING UNIGESCO TO RESUME ITS STATUS AS PRINCIPAL SHAREHOLDER CANADIAN SECURITIES ANALYSTS GENERALLY REGARD THE BLACKSTONEUNIGESCO OFFER AS GENEROUS AT A 45 PREMIUM TO THE AVERAGE CLOSING PRICE OF THE STOCK IN THE 20 DAYS BEFORE THE PROPOSAL WAS MADE ON FEB 9 AND UNIVA'S OTHER MAJOR SHAREHOLDER EMPIRE CO OF NOVA SCOTIA HAS INDICATED THAT THE PROPOSED PURCHASE PRICE APPEARS REASONABLE UNDER THE PROPOSAL BLACKSTONE INITIALLY WOULD ACQUIRE 80 OF UNIVA AND A GROUP FORMED BY UNIGESCO WOULD HOLD 20 THE COMPANIES WOULD ALSO ASSUME OR RETIRE ABOUT 535 MILLION CANADIAN DOLLARS US4235 MILLION OF UNIVA'S DEBT OUTSTANDING SOME OBSERVERS HAVE SPECULATED THAT THE CAISSE MIGHT SEEK TO JOIN THE UNIGESCO GROUP AS PART OF THE CAISSE'S EFFORT TO ENSURE THAT CONTROL OF THE COMPANY RETURNS TO QUEBEC INTERESTS UNIVA WHICH ALSO OPERATES STORES IN ONTARIO AND A FOODDISTRIBUTION BUSINESS IN NORTHERN CALIFORNIA HAS ANNUAL SALES OF MORE THAN C65 BILLION 9302190065 930219 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT WESTVACO CORP 150 MILLION OF DEBENTURES DUE FEB 15 2023 PRICED AS 7 3/4 AT 99488 TO YIELD 7794 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LONG ISLAND LIGHTING CO 142 MILLION OF DEBENTURES DUE MARCH 1 2007 PRICED AS 7 1/2 AT 99571 TO YIELD 755 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS CENTRAL MAINE POWER CO 75 MILLION OF GENERAL AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2008 PRICED AS 705 AT 97744 TO YIELD 73 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NEW BRUNSWICK CANADA TWOPART 400 MILLION CANADIANDOLLAR ISSUE OF BONDS PRICED TO YIELD 7487 FOR A C200 MILLION TRANCHE OF 7 FIVEYEAR BONDS AND 8313 FOR C200 MILLION OF 8 10YEAR BONDS THE YIELDS ARE 583 BASIS POINTS OVER A SIMILAR CANADIAN GOVERNMENT BOND FOR THE FIVEYEAR ISSUE AND 782 BASIS POINTS OVER A SIMILAR CANADIAN GOVERNMENT BOND FOR THE 10YEAR ISSUE THE OFFERING IS MANAGED BY SCOTIAMCLEOD INC DETROIT 3117 MILLION OF SERIES 1993A SEWAGE DISPOSAL SYSTEM REVENUE AND REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS GROUP THE OFFERING INCLUDES 1489 MILLION OF FIXEDRATE BONDS WHICH WERE GIVEN YIELDS RANGING FROM 270 IN 1994 TO 580 IN 2013 THERE IS ALSO A TOTAL OF 1628 MILLION OF DERIVATIVE SECURITIES CALLED PERIODIC AUCTION RESET SECURITIES AND INVERSE FLOATING RATE SECURITIES THE RATE FOR THE 814 MILLION OF PERIODIC AUCTION RESET SECURITIES WILL BE RESET AT AUCTIONS HELD EVERY 35 DAYS AFTER EACH AUCTION THE RATE FOR THE 814 MILLION OF INVERSE FLOATING RATE SECURITIES WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE PERIODIC AUCTION RESET SECURITIES RATE DETROIT'S PERIOIDIC AUCTION RESET SECURITIES HAVE BEEN GIVEN A COUPON OF 873 AND A BOND EQUIVALENT YIELD OF 889 BOTH TYPES OF DERIVATIVE SECURITIES HAVE A FINAL MATURITY OF JULY 1 2023 THE ENTIRE OFFERING IS INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P MANITOBA CANADA 300 MILLION OF NOTES DUE MARCH 1 2003 PRICED THROUGH DEALERS LED BY SALOMON BROTHERS INC THE ISSUE WAS PRICED AT PAR TO YIELD 675 OR A SPREAD OF 57 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE NONCALLABLE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PENNSYLVANIA HOUSING FINANCE AGENCY 957 MILLION OF SINGLEFAMILY MORTGAGE REVENUE BONDS BROUGHT TO THE MARKET BY A LEHMAN BROTHERS GROUP ALL OF THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE OFFERING WHICH IS BEING REMARKETED INCLUDES THE FOLLOWING 246 MILLION SERIES 199235A BONDS WHICH ARE PRICED TO YIELD FROM 380 IN 1995 TO 590 IN 2008 146 MILLION OF SERIES 199235B BONDS WHICH AREN'T FORMALLY REOFFERED 283 MILLION OF DERIVATIVES KNOWN AS SELECT AUCTION VARIABLERATE SECURITIES WHICH HAVE A RATE THAT WILL BE RESET AT PERIODIC AUCTIONS AND 283 MILLION OF DERIVATIVES CALLED RESIDUAL INTEREST BONDS AFTER EACH AUCTION OF THE VARIABLERATE SECURITIES THE RATE FOR THE RESIDUCAL INTEREST BONDS WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE SELECTAUCTION RATE BOTH TYPES OF DERIVATIVE SECURITIES HAVE A FINAL MATURITY OF APRIL 1 2025 MOODY'S AND S&P HAVE RATED THE OFFERING DOUBLEA FEDERAL NATIONAL MORTGAGE ASSOCIATION 520 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY THE OFFERING SERIES 199337 IS BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2966 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1485 IS BACKED BY 7 15YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199332 IS BACKED BY A SMBS 212 A STRIPPED MORTGAGEBACKED TRUST CONSISTING OF 300 MILLION IN INTERESTONLY SECURITIES AND 400 MILLION IN PRINCIPALONLY SECURITIES SMBS 212 IS BACKED BY 400 MILLION IN 85 30YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 855 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 356 MONTHS MBNA AMERICA BANK NA 750 MILLION OF FLOATING CREDITCARD CERTIFICATES PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE OFFERING MBNA MASTER CREDIT CARD TRUST 19931 WAS PRICED WITH AN INITIAL COUPON OF 3425 AT PAR TO FLOAT 30 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 12 CAP THE CERTIFICATES ARE RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 12 CASH COLLATERAL ACCOUNT THE AVERAGE LIFE OF THE CERTIFICATES IS FIVE YEARS WITH AN EXPECTED MATURITY OF SEPT 15 1998 THE LEGAL FINAL MATURITY IS MARCH 15 2000 UNISYS CORP 125 MILLION OF TRADE RECEIVABLES ASSETBACKED CERTIFICATES WERE PRICED LATE WEDNESDAY BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE OFFERING UNISYS RECEIVABLES MASTER TRUST I 19931 IS BACKED BY ACCOUNTS RECEIVABLES FROM THE SALE OF UNISYS'S COMPUTER PRODUCTS AND SERVICES THE CERTIFICATES WERE PRICED AS 505 AT 99 22/32 TO YIELD 522 A 70BASIS POINT SPREAD ABOVE THE THREEYEAR TREASURY NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE OFFERING CONTAINS A 100 SURETY BOND FROM CAPITAL MARKETS ASSURANCE CORP THE SURETY BOND GUARANTEES TIMELY PAYMENT OF INTEREST AND ULTIMATE PRINCIPAL THE DEAL STRUCTURED AS A THREEYEAR SOFT BULLET IS EXPECTED TO MATURE FEB 15 1996 THE LEGAL FINAL MATURITY IS NOV 15 1996 THE TRANSFEROR IN THE OFFERING IS UNISYS RECEIVABLES INC THE SERVICER IS UNISYS CORP CORESTATES BANK NA 1028 MILLION OF HOMEEQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE 966 MILLION IN CLASS A SENIOR CERTIFICATES WITH AN AVERAGE LIFE OF 245 YEARS WERE PRICED AS 5 1/2 AT 99 30/32 TO YIELD 5505 A SPREAD OF 140 BASIS POINTS ABOVE THE INTERPOLATED WHENISSUED TWOYEAR AND THREEYEAR TREASURY NOTE THE 62 MILLION IN CLASS B SUBORDINATE CERTIFIFICATES WITH AN AVERAGE LIFE OF 854 YEARS WERE PRICED AS 7 1/2 AT 99 28/32 TO YIELD 7639 A SPREAD OF 170 BASIS POINTS ABOVE THE INTERPOLATED SEVENYEAR AND 10YEAR TREASURY NOTE THE SENIOR CERTIFICATES IN THE TRANSACTION CORESTATES HOME EQUITY LOAN TRUST 19931 ARE RATED TRIPLEA BY S&P AND MOODY'S AND THE SUBORDINATE CERTIFICATES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P ASIDE FROM THE SUBORDINATE CERTIFICATES CREDIT ENHANCEMENT IN THE TRANSACTION CONSISTS OF A 45 RESERVE ACCOUNT DESIGNED TO SUPPORT BOTH CLASSES CORESTATES BANK IS A UNIT OF CORESTATES FINANCIAL CORP HYPERION 2005 INVESTMENT GRADE OPPORTUNITY TERM TRUST INC INITIAL OFFERING OF 20 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO WORLD BANK SUPRANATIONAL 200 BILLION YEN OF 45 GLOBAL BONDS DUE MARCH 20 2003 AT A FIXED REOFFER PRICE OF 9972 VIA IBJ INTERNATIONAL MORGAN STANLEY INTERNATIONAL AND NOMURA INTERNATIONAL PLC THE YIELD AT REOFFERING WAS SET AT 453 A MARGIN OF 25 BASIS POINTS ABOVE JAPANESE GOVERNMENT BOND NO 145 FEES 0325 WORLD BANK SUPRANATIONAL 100 MILLION OF STRUCTURED FLOATINGRATE EURONOTES DUE MARCH 17 1998 VIA LEHMAN BROTHERS INTERNATIONAL THE NOTES PAY QUARTERLY INTEREST BASED ACCORDING TO THE FOLLOWING FORMULA THE 10YEAR CONSTANT MATURITY TREASURY A REFERENCE RATE PUBLISHED IN THE TREASURY STATISTICAL RELEASE MULTIPLIED BY 50 PLUS 145 BASIS POINTS SUBJECT TO A MINIMUM OF 46 AND A MAXIMUM OF 25 FEES 040 NORDIC INVESTMENT BANK SUPRANATIONAL 300 MILLION CANADIAN DOLLARS OF 7 1/2 EUROBONDS DUE MARCH 17 1998 AT AN ISSUE PRICE OF 101205 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 9958 TO YIELD 7465 A MARGIN OF 51 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT BOND FEES 1 7/8 ASIAN DEVELOPMENT BANK SUPRANATIONAL 250 MILLION CANADAN DOLLARS OF 7 7/8 EUROBONDS DUE MARCH 11 2003 AT AN ISSUE PRICE OF 100975 VIA SCOTIA MCLEOD INC AT THE FIXED REOFFER PRICE OF 9930 THE YIELD IS 798 A MARGIN OF 28 BASIS POINTS ABOVE THE CANADIAN GOVERNMENT'S 7 1/4 BOND DUE 2003 FEES TWO GRUMA SA DE CV MEXICO 125 MILLION OF 9 3/4 EUROBONDS DUE MARCH 9 1998 AT A FIXED REOFFER PRICE OF 9995 VIA LEHMAN BROTHERS INTERNATIONAL THE YIELD WAS SET AT 976 SEMIANNUAL A MARGIN OF 445 BASIS POINTS ABOVE THE WHENISSUED FIVEYEAR US TREASURY NOTE FEES ONE THAMES INVESTMENTS NO 2 LTD SPECIAL PURPOSE COMPANY 125 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 1 1997 BACKED BY AN EQUIVALENT AMOUNT OF THE WORLD BANK'S 8 3/4 GLOBAL BONDS VIA SAMUEL MONTAGU & CO THE SENIOR A NOTES PAY INTEREST AT 4 FROM MARCH 15 TO SEPT 1 THEREAFTER INTEREST IS SET AT THE SIXMONTH LONDON INTERBANK OFFERED RATE PLUS 35 BASIS POINTS SUBJECT TO THE CONDITION THAT IT CAN NEITHER BE LOWER THAN THE PREVIOUS COUPON NOR HIGHER BY MORE THAN 50 BASIS POINTS THE ISSUE PRICE AND FIXED REOFFER PRICE IS PAR ALSO A PRIVATE PLACEMENT OF B NOTES PAYING NO PRINCIPAL BUT ENTITLED TO RESIDUAL FROM WORLD BANK INTEREST PAYMENTS AFTER A NOTE COUPONS ARE PAID PROCEEDS FROM THE B NOTES COVER THE PREMIUM PRICE PAID FOR WORLD BANK'S BONDS FEES 1/4 KOBE STEEL LTD JAPAN 30 BILLION YEN OF 47 EUROBONDS DUE JUNE 11 1998 AT AN ISSUE PRICE OF 101725 VIA NOMURA INTERNATIONAL FIXED REOFFER PRICE OF 10015 WHERE BONDS YIELD 466 FEES 1 7/8 BELGIUM SOVEREIGN 200 MILLION SWISS FRANCS OF 5 PRIVATELY PLACED NOTES DUE APRIL 6 1998 PRICED AT 10175 VIA UNION BANK OF SWITZERLAND FEES 1 1/2 FEDERAL NATIONAL MORTGAGE ASSOCIATION'S SERIES 199332 REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES ARE BACKED BY A STRIPPED MORTGAGEBACKED TRUST SMBS TRUST 212 SMBS 212 IS BACKED BY 400 MILLION IN 8 30YEAR MORTGAGES FRIDAY'S NEW SECURITIES ISSUES LISTINGS INCORRECTLY SAID THE REMICS WERE BACKED BY 85 30YEAR MORTGAGES 9302190064 930219 BUSINESS BRIEF STATOIL A/S NORWEGIAN FIRM SAYS PROFIT WAS DOWN 39 LAST YEAR NORWEGIAN STATE OIL GROUP STATOIL A/S SAID ITS NET INCOME FELL 39 LAST YEAR TO 25 BILLION NORWEGIAN KRONER 363 MILLION MAINLY BECAUSE OF LOWER PRICES ON OIL AND PETROCHEMICALS AND WEAK REFINING MARGINS SALES FELL 14 TO 794 BILLION KRONER THE COMPANY SAID OPERATING PROFIT WEAKENED IN THREE OF THE GROUP'S FOUR DIVISIONS THE EXCEPTION WAS THE GAS UNIT WHICH BENEFITED FROM ADDED REVENUE FROM GAS TRANSPORTATION ACTIVITIES THE UNIT'S OPERATING PROFIT GREW 56 TO 38 BILLION KRONER FROM 36 BILLION A YEAR EARLIER MEANWHILE OPERATING PROFIT IN THE PRODUCTION AND EXPLORATION UNIT SANK 75 TO 86 BILLION KRONER FROM 93 BILLION OIL PRODUCTION FROM STATOIL'S FIELDS STATFJORD GULLFAKS AND VESLEFRIKK WAS ROUGHLY 10 ABOVE LEVELS OF A YEAR EARLIER WHICH HELPED OFFSET DECLINING OIL PRICES AND INCREASED OPERATING COSTS 9302190063 930219 BUSINESS BRIEF DOWA MINING CO COMPANY CUTS PREDICTIONS FOR THE FISCAL YEAR'S RESULTS JAPAN'S DOWA MINING CO CUT ITS PREDICTIONS FOR CONSOLIDATED EARNINGS IN THE YEAR ENDING MARCH 31 DOWA MINING SAID SOFT COMMODITIES PRICES AND WEAK DEMAND FOR METALS DURING THE CURRENT WORLD ECONOMIC SLOWDOWN FORCED THE DOWNWARD REVISIONS DOWA MINING NOW EXPECTS A NET LOSS OF TWO BILLION YEN 167 MILLION IN THE YEAR COMPARED WITH THE 500 MILLION YEN NET INCOME PREDICTED EARLIER THIS YEAR'S LOSS WOULD BE WORSE THAN THE 34 MILLION YEN LOSS THE COMPANY HAD LAST YEAR SALES ARE NOW SEEN AT 250 BILLION YEN 38 BELOW THE PRIOR FORECAST OF 260 BILLION YEN BUT 09 ABOVE THE 24786 BILLION YEN LAST YEAR THE COMPANY NOW SEES PRETAX PROFIT AMOUNTING TO 12 BILLION YEN THAT IS 45 BELOW THE 22 BILLION YEN FORECAST EARLIER BUT WOULD STILL BE AN IMPROVEMENT FROM THE 93 MILLION YEN LOSS A YEAR AGO 9302190062 930219 COMMODITIES PLATINUM PALLADIUM AND SILVER FUTURES DROP AS INDUSTRIAL METAL TRADERS DIGEST CLINTON PLAN BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FUTURES PRICES OF PLATINUM PALLADIUM AND SILVER WERE PUSHED LOWER AS TRADERS AND INVESTORS DEEMED THE CLINTON DEFICITREDUCTION PACKAGE BEARISH FOR THIS GROUP OF COMMERCIALLY USED PRECIOUS METALS GOLD CLOSED UNCHANGED PLATINUM PALLADIUM AND SILVER TEND TO BE VIEWED AS INDUSTRIAL METALS SAID AMY GASSMAN A COMMODITY ANALYST WITH GOLDMAN SACHS THE EXPECTATION THAT PRESIDENT CLINTON'S TAX HIKES COULD LEAD TO LOWER DISPOSABLE INCOME WEAKER ECONOMIC GROWTH AND LOWER AUTO SALES CREATES A RELATIVELY NEGATIVE MARKET SENTIMENT TOWARD PLATINUM AND PALLADIUM WHICH ARE USED IN CATALYTIC CONVERTERS FOR AUTOMOBILES AND IN THE ELECTRONICS INDUSTRY A DROP IN DISPOSABLE INCOME ALSO COULD CRIMP A NUMBER OF IMPORTANT SOURCES OF DEMAND FOR SILVER NAMELY FROM JEWELERS SILVERWARE MANUFACTURERS AND THE PHOTO INDUSTRY SHE SAID THE RETREAT IN THE PLATINUM GROUP METALS FOLLOWS WEEKS OF STRONG GAINS AMID CONCERNS OF TIGHTENING SUPPLIES FROM THE COMMONWEALTH OF INDEPENDENT STATES PLATINUM AND PALLADIUM ARE BYPRODUCTS OF NICKEL RUSSIA ONE OF THE WORLD'S LARGEST PRODUCERS OF NICKEL IS EXPERIENCING SHARP DECLINES IN THE OUTPUT OF THAT IMPORTANT BASE METAL INCONCLUSIVE TALKS BETWEEN RUSSIAN SUPPLIERS AND JAPANESE INDUSTRIAL USERS OF PLATINUM AND PALLADIUM CONTINUE TO WORRY THE PRECIOUS METALS MARKET TRADERS SAY ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SKIDDED 3 TO 36350 AN OUNCE PALLADIUM FOR JUNE DELIVERY SLIPPED 2 TO 11050 AN OUNCE ON THE NEW YORK COMMODITY EXCHANGE THE ACTIVELY TRADED MARCH CONTRACT FOR SILVER DROPPED TWO CENTS TO 3633 AN OUNCE GOLD FOR APRIL DELIVERY CLOSED UNCHANGED AT 33150 ON THE COMEX GOLD PRICES WERE UNCHANGED BECAUSE THE DEFICITREDUCTION PLAN OUTLINED BY PRESIDENT CLINTON LIKELY WOULD RESULT IN LOWER INTEREST RATES WHICH IN TURN COULD USHER IN HIGHER INFLATION SAID PHILIP GOTTHELF EDITOR OF COMMODITY FUTURES FORECAST GOLD IS WIDELY REGARDED AS A HEDGE AGAINST INFLATION BULLION DEALERS SAID THAT GOLD'S RELATIVE STRENGTH YESTERDAY IS A SIGN THAT THE METAL'S RECENT WEAKNESS MAY HAVE BEEN OVERESTIMATED AND THAT GOLD FUTURES MIGHT REMAIN IN A RANGE BETWEEN 330 AND 335 OVER THE NEXT SEVERAL MONTHS GOLD HAS ALSO BEEN SUPPORTED RECENTLY THEY SAID BY THE ABSENCE OF FURTHER CENTRAL BANK ACTION IN THE BULLION MARKET A SALE LAST YEAR OF 400 METRIC TONS BY THE DUTCH CENTRAL BANK HAD UNNERVED INVESTORS AND SPECULATORS WHO ANTICIPATED FURTHER LIQUIDATIONS EARLY THIS YEAR A FURTHER SIGN OF RENEWED CONFIDENCE IN GOLD TRADERS SAID WAS THE STRONG PERFORMANCE OF A HOST OF GOLDMINING SHARES ON EXCHANGES IN BOTH THE US AND SOUTH AFRICA IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK & MEATS PRICES OF MOST HOG AND CATTLE FUTURES CONTRACTS ROSE AT THE CHICAGO MERCANTILE EXCHANGE AMID FORECASTS FOR ANOTHER WINTER STORM IN THE MIDWEST NEXT WEEK THE HOG CONTRACT FOR FEBRUARY DELIVERY JUMPED 075 CENTS A POUND TO SETTLE AT 459 CENTS A SNOW STORM EARLIER THIS WEEK OVER MUCH OF THE NATION'S MIDSECTION DISRUPTED THE FLOW OF LIVESTOCK TO MEATPACKING PLANTS AFTER THE CLOSE OF TRADING TODAY THE AGRICULTURE DEPARTMENT IS SLATED TO RELEASE ITS MONTHLY SURVEY OF FEEDLOTS IN THE SEVEN MAJOR RANCH STATES CHARLES LEVITT AN ANALYST AT SHEARSON LEHMAN BROTHERS INC CHICAGO SAID HE EXPECTS THE DEPARTMENT TO REPORT THAT THE FEEDLOT INVENTORY ON FEB 1 WAS 9 HIGHER THAN THE SAME 1992 DATE AND THE HIGHEST LEVEL FOR THAT DATE IN 19 YEARS FEEDLOTS FATTEN CATTLE FOR SLAUGHTER AND THE SURVEY IS USUALLY A GOOD INDICATION OF THE SUPPLY OF MEAT AVAILABLE TO THE MARKET IN SEVERAL MONTHS CATTLE PRICES HAVE BEEN UNUSUALLY STRONG IN RECENT MONTHS DESPITE THE LARGE NUMBER OF CATTLE ON FEEDLOTS BECAUSE MANY OF THE ANIMALS ARE TAKING LONGER THAN NORMAL TO REACH MATURITY AN UNUSUALLY STORMY WINTER HAS TURNED MANY OF THE FEEDLOTS IN THE SOUTHERN PLAINS TO MUD WHICH IS SLOWING THE GROWTH RATE OF CATTLE GRAINS & SOYBEAN WHEAT AND SOYBEAN PRICES SETTLED LOWER IN LIGHT TRADING AS GRAIN TRADERS DIGESTED THE CLINTON ADMINISTRATION'S BUDGET PLANS THE WHEAT CONTRACT FOR MARCH DELIVERY AT THE CHICAGO BOARD OF TRADE FELL 35 CENTS A BUSHEL TO SETTLE AT 36525 A BUSHEL AS EXPECTED PRESIDENT CLINTON DIDN'T ANNOUNCE ANY MAJOR CUTS IN FARM EXPORT PROGRAMS OR IN THE AGRICULTURE DEPARTMENT'S PRICE SUPPORT PROGRAMS WE FEEL A LITTLE RELIEVED SAID BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC OF CRYSTAL LAKE ILL HOWEVER SOME TRADERS ARE DISAPPOINTED THAT THE NEW ADMINISTRATION HASN'T ANNOUNCED ANY PLAN TO TACKLE RUSSIA'S GROWING GRAINDEBT PROBLEM US TRADERS HAVE BEEN SPECULATING THAT THE ADMINISTRATION IS STUDYING WHETHER TO EXTEND THE REPAYMENT PERIOD OF THE LOANS OR BARTER US FARM COMMODITIES FOR RUSSIAN OIL TRADERS SAID THAT ONE POSITIVE FOR THE CORN MARKET MIGHT BE PRESIDENT CLINTON'S PROPOSED ENERGY TAX WHILE GASOLINE AND COAL WOULD BE HIT BY THE TAX ALTERNATIVE FUELS SUCH AS CORNBASED ETHANOL APPARENTLY ESCAPE THE TAX ENERGY CRUDE OIL PRICES ROSE SLIGHTLY IN ACTIVE TRADING MOSTLY ON TECHNICAL FACTORS AS MARKET PLAYERS BOUGHT AND SOLD CONTRACTS BASED ON THE PRICE DIFFERENCES BETWEEN OIL AND PETROLEUM PRODUCTS TRADERS SAID DISCUSSION ABOUT PRESIDENT CLINTON'S PROPOSED ENERGY TAXES AND OTHER INITIATIVES WAS RAMPANT BUT HAD LITTLE IMMEDIATE IMPACT ON YESTERDAY'S MARKET THE BROADBASED ENERGY TAX PROPOSAL BASED ON THE HEAT CONTENT OF VARIOUS FUELS WAS WHAT MOST MARKET PLAYERS WERE EXPECTING MANY OIL ANALYSTS AND INDUSTRY EXECUTIVES SAID THAT THE PROPOSED ENERGY TAXES AREN'T EXPECTED TO HAVE A SIGNIFICANT IMPACT ON ENERGY SUPPLY AND DEMAND IN THE LONGER RUN THE PRESIDENT'S ABILITY TO SPUR ECONOMIC GROWTH MAY BE MORE IMPORTANT TO ENERGY MARKETS THEY SAID ON THE NEW YORK MERCANTILE EXCHANGE LIGHT SWEET CRUDE FOR DELIVERY IN MARCH ROSE NINE CENTS A BARREL TO 1942 THE CONTRACT WHICH OPENED LOWER TRADED FOR AS LITTLE AS 1919 A BARREL DURING THE DAY AND AS HIGH AS 1954 9302190061 930219 CREDIT MARKETS BOND PRICES SOAR ON CLINTON'S ECONOMIC PLAN AS TWO VIEWS OF PROPOSALS EMERGE BOTH BULLISH BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES SOARED YESTERDAY AS INVESTORS REACTED TO PRESIDENT CLINTON'S ECONOMIC PACKAGE WHICH FEATURED SHARP TAX INCREASES AND PLANS TO REDUCE THE FEDERAL BUDGET DEFICIT THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH 1000 FACE VALUE TO 101 7/32 AS ITS YIELD PLUNGED TO 702 FROM 710 BUT TRADERS SAID THAT THE SHARP RISE IN BOND PRICES DOESN'T MEAN THAT THERE WAS UNIVERSAL AGREEMENT ABOUT WHY THE PRESIDENT'S PACKAGE WOULD BE GOOD FOR THE BOND MARKETS ESPECIALLY THE TREASURY MARKET IN FACT THERE SEEMED TO BE AT LEAST TWO INTERPRETATIONS OF THE PRESIDENT'S PACKAGE THAT INFLUENCED THE MARKET ACCORDING TO JIM DONNELLY CHIEF TECHNICAL ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES IT JUST SO HAPPENED THAT BOTH WERE BULLISH FOR BONDS THE FIRST CAMP OF PARTICIPANTS FORESEES THE IMPROVEMENT IN THE BUDGET DEFICIT WHILE THE OPPOSING CAMP FEARS THAT HIGHER TAXES WILL SEND THE ECONOMY BACK INTO RECESSION SAID MR DONNELLY BOTH GROUPS BOUGHT BONDS BOND INVESTORS FAVOR ATTEMPTS TO REDUCE THE BUDGET DEFICIT BECAUSE THEY BELIEVE A SMALLER DEFICIT WILL LEAD TO LOWER INTEREST RATES AS THE GOVERNMENT REDUCES ISSUANCE OF NOTES AND BONDS AND THEY BELIEVE A SLOWING ECONOMY MEANS LOWER INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF THEIR INVESTMENTS WHICH GENERALLY HAVE A FIXED RATE OF RETURN WHILE THERE WAS DISAGREEMENT ABOUT THE REASON WHY THE ECONOMIC PACKAGE WOULD BE POSITIVE FOR MOST BOND MARKETS THERE WAS OPTIMISM ABOUT ITS AFFECTS ON THE MUNICIPAL BOND MARKET WHICH RALLIED YESTERDAY MUNICIPAL BOND PRICES HAVE BEEN RISING SINCE NOVEMBER ON THE EXPECTATION THAT THE PRESIDENT WOULD INCREASE INCOME TAXES THUS MAKING TAXEXEMPT INVESTMENTS ALL THE MORE ATTRACTIVE THE PRESIDENT'S PROPOSAL FOR AN EVEN HIGHER TOP TAX RATE THAN HAD BEEN EXPECTED 396 VS36 HELPED TO BOOST DEMAND EVEN FURTHER AND THAT TOP RATE DOES NOT REFLECT EITHER THE PHASEOUT OF EXEMPTIONS OR THE LIMIT ON ITEMIZED DEDUCTIONS FOR MANY UPPERINCOME TAXPAYERS WHICH COULD PUSH THE TOP RATE EVEN HIGHER MUNICIPAL BOND PRICES ROSE AS MUCH AS 1 1/4 POINT YESTERDAY FOLLOWING SMALLER GAINS EARLIER IN THE WEEK DESPITE THE PRICE INCREASES IN THE TREASURY MARKET HOWEVER WALL STREET DEALERS WEREN'T EXACTLY RUSHING TO BUY YESTERDAY SAID TRADERS BECAUSE OF WORRIES THAT PRICES WOULD PLUNGE AFTER THE PRESIDENT'S SPEECH MANY DEALERS HADN'T STOCKED UP ON TREASURYS IN ADVANCE AS A RESULT WHEN CUSTOMER ORDERS POURED IN FOR TREASURYS MANY DEALERS WERE FORCED TO FILL THEM ON THE OPEN MARKET RATHER THAN FROM THEIR OWN INVENTORIES THUS BOOSTING PRICES ACCORDING TO MEAD L BRIGGS HEAD OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC NOW THAT THE NUMBERS ARE OUT I VIEW THE MARKET REACTION TO PRESIDENT CLINTON'S PLAN AS POSITIVE BUT MR BRIGGS POINTED OUT THAT THE REASON THAT IT WAS POSITIVE ISN'T BECAUSE OF THE TRADERS ON WALL STREET MANY OF WHOM REMAIN SKEPTICAL ABOUT ITS SUCCESS THE REACTION WAS POSITIVE BECAUSE OF THE PEOPLE WHO OWN THE MONEY THE PENSION FUNDS AND MONEY MANAGERS NOT THE TRADERS INVESTORS CONTROL THE MARKETS THOUGH TRADERS SOMETIMES THINK THEY DO AND WHILE MANY IN THE BOND MARKETS WERE STILL QUITE SKEPTICAL ABOUT HOW MR CLINTON'S PACKAGE WILL SURVIVE DEBATES IN CONGRESS A NUMBER WERE SUPPORTIVE OF THE PRESIDENT'S PLAN INCLUDING THE PUBLIC SECURITIES ASSOCIATION A TRADE ASSOCIATION OF BOND DEALERS MUCH OF YESTERDAY'S BUYING WAS CONCENTRATED IN INTERMEDIATE TREASURY SECURITIES SAID MR DONNELLY OF TECHNICAL DATA THERE WAS REAL INVESTMENT GOING ON HE SAID AND MOST OF IT WAS IN THE INTERMEDIATETERM RATHER THAN IN THE LONGTERM ACCORDING TO MR DONNELLY MANY INVESTORS FELT UNCOMFORTABLE ABOUT BETTING ON THE 30YEAR BOND AS ITS YIELD REACHED ITS LOWEST LEVELS IN OVER 15 YEARS SINCE THE START OF REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 YIELD HAS NEVER CLOSED BELOW 710 YESTERDAY THE 10YEAR NOTE ROSE NEARLY AS MUCH AS THE 30YEAR BOND A SIGN THAT DEMAND WAS STRONGER FOR THE 10YEAR NOTE SAID TRADERS THAT'S BECAUSE IT TAKES GREATER DEMAND TO LIFT A SHORTERTERM ISSUE THAN A LONGERTERM ONE BY THE SAME AMOUNT THE 10YEAR NOTE ROSE NEARLY A POINT TO 100 23/32 TO YIELD 614 DOWN FROM 627 ON WEDNESDAY OTHER TREASURY MATURITIES ROSE SHARPLY AS WELL FOR THE MOMENT AT LEAST IT SEEMS THAT MOST BOND INVESTORS ARE HAPPY WITH WHAT THE PRESIDENT HAS PROPOSED ACCORDING TO FRED MELTZER SENIOR MANAGER OF US FIXED INCOME AT PANAGORA ASSET MANAGEMENT IN BOSTON THERE WERE NO TECHNICAL DETAILS IN CLINTON'S ADDRESS BUT THE FUNDAMENTALS OF THE SPEECH WERE SO SOLID AND THE PRESIDENT ENUNCIATED HIS DIRECTION SO FORCEFULLY THAT SUPPORT FOR HIM MAY TAKE ON A NEW LIFE MR MELTZER AMONG OTHER MONEY MANAGERS SAID THAT IT WAS SIGNIFICANT THAT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WAS SEATED BETWEEN HILLARY RODHAM CLINTON AND TIPPER GORE MR MELTZER SAID THAT MR CLINTON REFERENCED SUCCESS IN HIS PROGRAM AS BEING MEASURED IN LOW INTEREST RATES THEREFORE IT IS ABSOLUTELY CRITICAL THAT GREENSPAN BUYS INTO THIS PROGRAM ACCORDING TO MR MELTZER MR GREENSPAN SITTING NEXT TO HILLARY CLINTON WAS MEANT TO SHOW THIS BUT SKEPTICS IN THE BOND MARKETS ABOUNDED YESTERDAY SOME LIKE JIM SOMERS A PORTFOLIO MANAGER IN RADNOR PA BELIEVE THAT THE CLINTON PLAN WILL EXACERBATE INFLATION PRESSURES DOWN THE ROAD THIS IS A RARE OPPORTUNITY WHERE A 35YEAROLD PORTFOLIO MANAGER HAS A CHANCE TO OWN A BOND THAT WILL LOSE MONEY THROUGH HIS WHOLE CAREER SAID MR SOMERS IN REFERENCE TO THE PURCHASE OF 30YEAR TREASURY BONDS GOING THROUGH A 7 YIELD ON THE 30YEAR TREASURY BOND IS GOING TO BE VERY HARD WITH POLITICS DOMINATING THE ATTENTION OF THE BOND MARKETS NEW ECONOMIC DATA WAS PRACTICALLY IGNORED REPORTS OF A RISE IN CONSUMER PRICES A DROP IN JOBLESS CLAIMS AND CONTINUING STRENGTH IN INDUSTRY WERE SHRUGGED OFF THE LABOR DEPARTMENT REPORTED THAT ITS CONSUMER PRICE INDEX ROSE 05 IN JANUARY ANALYSTS HAD EXPECTED THE CPI TO SHOW A RISE OF ONLY 02 AFTER CLIMBING OF 01 IN DECEMBER 1992 THE LABOR DEPARTMENT ALSO REPORTED THAT FIRSTTIME CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FELL A SEASONALLY ADJUSTED 19000 IN THE WEEK ENDED FEB 6 TO 321000 FROM 340000 THE PREVIOUS WEEK AND INDUSTRIAL PRODUCTION ROSE 04 IN JANUARY ACCORDING TO FEDERAL RESERVE BOARD DATA THE FOURTH CONSECUTIVE MONTHLY INCREASE LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY KNOWN AS M2 FELL 4 BILLION IN THE WEEK ENDED FEB 8 THAT DROP PUSHES THE M2 GROWTH RATE DOWN TO NEGATIVE 29 FROM THE FOURTHQUARTER BASE OF 1992 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 A RALLY IN THE MUNICIPAL BOND MARKET SHARPLY ACCELERATED FOLLOWING MR CLINTON'S AFFIRMATION OF HIS PLAN TO RAISE FEDERAL INCOME TAX RATES AT THE CLOSE OF YESTERDAY'S LIVELY DEALINGS TAXEXEMPT BONDS WERE UP 1/4 POINT TO 1 1/4 POINT FOLLOWING SMALLER GAINS ON TUESDAY AND WEDNESDAY DURING HIS ADDRESS TO CONGRESS MR CLINTON CONFIRMED HIS INTENTION TO BRING IN REVENUES BY RAISING THE TOP MARGINAL TAX RATE TO 396 FROM THE CURRENT 31 THAT RATE WOULD BE FOR COUPLES OR INDIVIDUALS WITH TOTAL INCOME OF OVER 250000 ALTHOUGH MUNIS HAVE BEEN RALLYING FOR MONTHS HELPED BY TALK ABOUT HIGHER TAXES FOR THE WEALTHY BUYING IS GROWING INCREASINGLY HEAVY IF ANY INVESTORS HAD BEEN HOLDING OFF ON BUYING MUNIS MR CLINTON'S ADDRESS HAS PROBABLY SPURRED THEM INTO ACTION SAID JOHN MOUSSEAU DIRECTOR OF LEHMAN BROTHERS' PORTFOLIO ANALYSIS & REVIEW SERVICE FOR INDIVIDUALS WITH INVESTMENTS OF 1 MILLION OR MORE IN THE SCRAMBLE FOR MUNIBOND SHELTERS WITH ATTRACTIVE YIELDS INDIVIDUALS ARE SETTLING FOR SECURITIES WITH LONGER MATURITIES AND LOWER CREDIT QUALITY THAN THEY MIGHT HAVE PREFERRED IN THE PAST MR MOUSSEAU SAID AMONG ACTIVELY TRADED ISSUES THE FLORIDA BOARD OF EDUCATION'S 5875 SERIES C PUBLIC EDUCATION CAPITAL OUTLAY BONDS OF 2023 FINISHED 1/2 POINT HIGHER AT 100 1/4 TO YIELD 582 THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 550 SERIES B POWER SYSTEM REVENUE REFUNDING BONDS OF 2017 CLOSED 1 1/4 POINT HIGHER AT 96 1/4 TO YIELD 575 CORPORATE BONDS SOARED WITH TREASURYS SETTING THE STAGE FOR BRISK PRIMARY MARKET ACTIVITY IN THE DAYS AHEAD WITH TREASURY YIELDS TUMBLING A NEW FLOOD OF CORPORATE BOND SALES COULD BE DUE SOON SYNDICATE OFFICIALS SAID MANY OF THESE BORROWERS ARE COMPANIES THAT HAVE ALREADY GONE THROUGH SEVERAL ROUNDS OF REFINANCING THEIR OUTSTANDING HIGHERCOUPON DEBT HIGHGRADE CORPORATES ENDED 1/8 TO 7/8 POINT HIGHER TRADERS SAID SPREADS BETWEEN YIELDS ON CORPORATE BONDS AND COMPARABLE TREASURYS WERE STEADY AMONG INTERMEDIATE ISSUES AND ONLY SLIGHTLY WIDER AMONG LONGERDATED PAPER JUNK BONDS ENDED LITTLE CHANGED BECAUSE CORPORATE BONDS GENERALLY LAG TREASURYS DURING A RALLY SPREADS SHOULD HAVE WIDENED MUCH MORE TRADERS SAID THIS CONFIRMS THAT THERE IS CONTINUED STRONG DEMAND FOR CORPORATE BONDS AND THAT INSTITUTIONAL INVESTORS STILL HAVE LARGE SUMS OF CASH TO PUT TO WORK THEY SAID DESPITE THE SHARP DROP IN INTEREST RATES PRIMARY MARKET ACTIVITY WAS MUTED YESTERDAY WITH BORROWERS FLOATING LESS THAN 1 BILLION OF NEW DEBT WITH MANY INSTITUTIONAL INVESTORS DRIVEN TO THE SIDELINES BY VOLATILITY IN THE BOND AND EQUITY MARKETS BANKERS APPEARED TO SELL ONLY THOSE DEALS THAT HAD BUILTIN DEMAND MANY OF THE OFFERINGS DONE EARLY IN THE SESSION WERE SOLD OUT IMMEDIATELY GENERATING MOMENTUM FOR DEALS PRICED LATER MORTGAGE BACKED SECURITIES WERE UNDER PRESSURE YESTERDAY FROM HEIGHTENED REFINANCING FEARS DRIVEN BY THE SHARP RALLY IN THE TREASURY MARKET AS RATES HEAD EVER LOWER CHANCES OF HOMEOWNERS REFINANCING THEIR 15YEAR AND 30YEAR MORTGAGES BECOME GREATER THE SECURITIES UNDER THE MOST PRESSURE YESTERDAY WERE SECURITIES BACKED BY MORTGAGE LOANS WITH COUPONS OF 9 OR MORE HOMEOWNERS HOLDING THESE LOANS MAY HAVE MISSED EARLIER REFINANCING OPPORTUNITIES BUT AREN'T EXPECTED TO PASS UP ANOTHER FEDERAL NATIONAL MORTGAGE ASSOCIATION 9 ISSUES FOR MARCH DELIVERY FOR INSTANCE ENDED THE DAY UP ONLY 2/32 AT 106 12/32 HURT MOST YESTERDAY WERE INTERESTONLY SECURITIES WHICH SUFFERED LOSSES OF AS MUCH AS 3 POINTS INVESTORS IN INTERESTONLY SECURITIES STAND TO LOSE THE MOST IF THE UNDERLYING MORTGAGES ARE REFINANCED AND TO GAIN THE MOST IF THE MORTGAGE LOAN LIVES OUT ITS EXPECTED TERM THE LONGER THE LOAN EXISTS THE LONGER THE PRINCIPAL PORTION OF THE UNDERLYING MORTGAGE HAS TO GENERATE INTEREST PRICES OF CURRENTCOUPON SECURITIES FACING MUCH LESS OF A THREAT FROM HOMEOWNER REFINANCING POSTED GAINS OF 16/32 TO 19/32 PRICES OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR MARCH DELIVERY FINISHED 19/32 HIGHER AT 102 31/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES FINISHED 18/32 HIGHER AT 102 25/32 AND FANNIE MAE 75 ISSUES FINISHED 17/32 HIGHER AT 102 18/32 GENE COLTER AND CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9302190060 930219 BUSINESS BRIEF TRANSAMERICA CORP NET POSTED FOR 4TH QUARTER REVERSING YEAREARLIER LOSS TRANSAMERICA CORP SAN FRANCISCO SAID AN IMPROVING ECONOMY AND THE RETURN TO PROFITABILITY OF ITS COMMERCIALLENDING UNIT PUSHED FOURTHQUARTER NET INCOME TO 119 MILLION OR SIX CENTS A SHARE THAT COMPARES WITH A LOSS OF 775 MILLION OR 105 A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDES A 75 MILLION CHARGE FOR SELLING OFF PROPERTY AND CASUALTY OPERATIONS THE INSURANCE AND FINANCIAL SERVICES CONCERN SAID A RESTRUCTURING OF ITS COMMERCIAL LENDING UNIT ALSO HELPED IT POST RECORD NET FOR 1992 OF 2432 MILLION OR 283 A SHARE THAT IS ALMOST A FIVEFOLD INCREASE FROM NET OF 501 MILLION OR 50 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY TOOK A 130 MILLION RESTRUCTURING CHARGE 9302190059 930219 BUSINESS BRIEF NUWEST INDUSTRIES INC FIRM TO REFINANCE DEBT POSTS FISCAL 2NDPERIOD LOSS NUWEST INDUSTRIES INC SAID IT RETAINED AN INVESTMENT BANKING FIRM TO HELP THE COMPANY IN ITS EFFORTS TO REFINANCE DEBT OR RECAPITALIZE AND REPORTED A NET LOSS OF 11 MILLION FOR THE FISCAL SECOND PERIOD THE FERTILIZER MANUFACTURER IN ENGLEWOOD COLO SAID IT MAY BE FORCED TO SEEK PAYMENT CONCESSIONS FROM LENDERS IF IT FAILS TO REFINANCE ITS DEBT BY THE END OF THE FISCAL YEAR ENDING JUNE 30 THE COMPANY SAID ITS REVOLVING CREDIT FACILITY MUST BE RENEWED PRIOR TO ITS EXPIRATION ON AUG 31 AND ABOUT 321 MILLION OF LONGTERM DEBT IS DUE AT MATURITY IN OCTOBER 1994 THE COMPANY ALSO SAID IT HAD A NET LOSS OF 13 CENTS A SHARE FOR THE FISCAL SECOND QUARTER ENDED DEC 31 1992 COMPARED WITH A NET LOSS OF 14 MILLION OR 14 CENTS A SHARE FOR THE LIKE PERIOD A YEAR AGO CITING FALLING PRICES FOR ITS PHOSPHATE PRODUCTS THE COMPANY SAID SALES FELL 8 TO 232 MILLION FROM 252 MILLION 9302190058 930219 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON SEIZES THE POLITICAL OFFENSIVE WITH HIS ECONOMIC PLAN HOUSE DEMOCRATIC WHIPS WERE EBULLIENT AT A MEETING YESTERDAY ESPECIALLY AT CLINTON'S INYOURFACE CHALLENGE TO REPUBLICANS HIS POLITICAL AIDES URGE HIM TO KEEP HAMMERING AT HIS GOP CRITICS TO PROVIDE SPECIFIC ALTERNATIVES THE ISSUE SHOULDN'T JUST BE HIS PLAN BUT HIS VS THEIRS SAYS ONE ADVISER THEY ENDORSE HIS EARLY BARNSTORMING FOR THE PLAN BUT WARN HIM NOT TO OVERDO IT THEY STRESS THE NEED FOR HIM TO LOOK PRESIDENTIAL SOMETHING THAT'S HARD TO DO IF HE'S ON THE CAMPAIGN TRAIL MOST DAYS MEANWHILE THE DEMOCRATIC NATIONAL COMMITTEE SEEKS TO MOBILIZE BACKHOME PRESSURE SUPPORTERS ARE ASKED TO JOIN IN A LEGISLATIVE AFFAIRS PHONE TREE A CAMPAIGN TO JAM LAWMAKERS' PHONES WITH PROCLINTON MESSAGES FAST START DEMOCRATS PLAN AN EARLY PUSH FOR CLINTON'S PROPOSALS HOUSE DEMOCRATS HOPE TO PASS A BUDGET RESOLUTION BY THE APRIL RECESS THOUGH SENATE ACTION WILL BE LATER THE UNEMPLOYMENT INSURANCE BILL WILL REACH THE HOUSE FLOOR NEXT WEEK THE STIMULUS PACKAGE A WEEK LATER MEANWHILE DEMOCRATIC LEADERS MULL MERGING CLINTON'S FORTHCOMING HEALTHCARE PROPOSAL WITH THE FINAL VOTES ON THE BUDGET PLAN IN LATE SUMMER SUCH A STEP WOULD MAKE IT EASIER TO BLOCK A GOP FILIBUSTER WHILE ALLAYING CONCERNS THAT CLINTON'S PROJECTED MEDICARE SAVINGS AREN'T CREDIBLE A MAJOR DEMOCRATIC WORRY IF WAYS AND MEANS CHAIRMAN ROSTENKOWSKI IS INDICTED THE CRUCIAL COMMITTEE MAY BE LEFT IN THE HANDS OF UNTESTED REP GIBBONS CLINTON'S PLAN WINS MOSTLY PRAISE ABROAD DESPITE SOME GRUMBLES US OFFICIALS EXPECT A WARM RESPONSE AT NEXT WEEK'S G7 MEETING IN LONDON THE PRESIDENT'S PACKAGE GAINS KIND WORDS FROM SUCH UNLIKELY SOURCES AS LORD HOWE MARGARET THATCHER'S FORMER CHANCELLOR OF THE EXCHEQUER THE SANGUINE REACTION OF WORLD FINANCIAL MARKETS IS CITED AS FURTHER EVIDENCE OF APPROVAL FOR THE PLAN BUT THE ENERGY TAX WILL DISPLEASE SAUDI ARABIA WHICH MAY SEEK TO PUSH UP ENERGY PRICES IN RESPONSE AND BK ZUTSHI INDIA'S AMBASSADOR TO THE WORLD TRADE TALKS WORRIES THAT CLINTON'S INSISTENCE ON FAIR TRADE RULES IS CODE FOR PROTECTIONISM SOME TRADE EXPERTS WORRIED THAT TRADE REP KANTOR AND COMMERCE CHIEF BROWN BOTH NOVICES COULD INADVERTENTLY BACK INTO A TRADE WAR HOPE BENTSEN AND WHITE HOUSE AIDE RUBIN WILL TAKE A STRONGER HAND HUMBLED WITH THE PHARMACEUTICAL INDUSTRY UNDER WITHERING ATTACK FROM CLINTON PREEMPTIVE SURRENDER I THINK IS THE BEST STRATEGY SAYS MITCH DANIELS AN ELI LILLY EXECUTIVE AND FORMER REAGAN POLITICAL AIDE HE PREDICTS THE INDUSTRY WILL REVERSE ITS PREVIOUS OPPOSITION TO GOVERNMENT REIMBURSEMENT FOR PRESCRIPTION DRUGS AS PART OF A HEALTHREFORM PLAN THE ADMINISTRATION HOPES TO BRING BOSNIAN PRESIDENT IZETBEGOVIC HERE TO MEET WITH GORE IN THE NEXT FEW DAYS AS SOON AS THE MUSLIM LEADER CAN GET OUT OF HIS BESIEGED CAPITAL IZETBEGOVIC'S GOVERNMENT IS REFUSING AID DELIVERIES TO SARAJEVO UNTIL THE REST OF BOSNIA IS SUPPLIED GORE IS LIKELY TO CLAIM THAT MORE HELP WILL SOON ARRIVE AND URGE HIM TO RETURN TO NEGOTIATIONS PENTAGON PICKS HIT SENATE SNAGS A CONFIRMATION HEARING YESTERDAY FOR DEPUTY SECRETARYDESIGNATE WILLIAM PERRY WAS CANCELED BECAUSE THE WHITE HOUSE FAILED TO SUBMIT THE NECESSARY PAPERS AND MORTON HALPERIN NOMINATED TO BE AN ASSISTANT SECRETARY FACES A GRILLING OVER HOMOSEXUALS IN THE MILITARY AND HIS LONGAGO LINKS TO PENTAGON PAPERS LEAKER DANIEL ELLSBERG ASPIN'S EARLY MOVES TROUBLE THE WHITE HOUSE AND LAWMAKERS THE DEFENSE CHIEF SPARS WITH OMB'S PANETTA OVER THE DEFENSE BUDGET AND IS SEEN BY SOME AS DRAGGING HIS HEELS ON MAKING THE NECESSARY CUTS THAT COMES ON TOP OF THE MESS OVER HOMOSEXUALS IN THE MILITARY WHICH CLINTON AIDES BELIEVE ASPIN BOTCHED WITH AN EARLY AND UNNECESSARY TELEVISION APPEARANCE DWELLING ON CONGRESSIONAL OPPOSITION HIS CREATION OF A RAFT OF NEW PENTAGON POSTS THAT AMOUNT TO A MINIATURE STATE DEPARTMENT PROVOKES GRUMBLING IN THE ADMINISTRATION AND ON CAPITOL HILL WHERE THE FORMER CONGRESSMAN HAS A REPUTATION FOR OVERREACHING MEANWHILE HIS FREEWHEELING MANAGEMENT STYLE RANKLES SENIOR MILITARY OFFICERS ACCUSTOMED TO PREDECESSOR CHENEY'S DIRECT WAYS A WHITE HOUSE AIDE COMPLAINS ASPIN IS MORE INTERESTED IN PROMOTING HIMSELF THAN SUPPORTING CLINTON MINOR MEMO LABOR SECRETARY REICH SAYS THAT WHEN HE FLEW COACH BACK TO WASHINGTON FROM AN AFLCIO CONVENTION IN MIAMI FOUR PEOPLE THANKED HIM FOR GOING ECONOMY IT ALMOST MADE IT WORTHWHILE HE ADDS CLINTON STANDARD TIME THE 145PAGE SUMMARY OF THE ECONOMIC PLAN CARRIED A WARNING THAT IT NOT BE RELEASED BEFORE 9 PM WEDNESDAY NO PROBLEM THE BOOK WASN'T DISTRIBUTED UNTIL THURSDAY MORNING A NEW SIGHT AROUND TOWN HILLARY CLINTON FAN CLUB BUMPER STICKERS 9302190057 930219 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES SURGED AS INVESTORS BET THAT CLINTON'S ECONOMIC PLAN WILL EITHER PUSH THE ECONOMY BACK INTO RECESSION OR SIGNIFICANTLY REDUCE THE BUDGET DEFICIT THE TREASURY'S 30YEAR BOND ROSE MORE THAN A FULL POINT STOCKS AND THE DOLLAR ENDED MIXED REFLECTING CONFUSION ABOUT THE PLAN THE DOW JONES INDUSTRIALS FELL 10 POINTS TO 330219 AFTER A WILD DAY THAT SAW AN 80POINT SWING FROM PEAK TO TROUGH BUSINESS LEADERS ARE ALTERING THEIR VISION OF CORPORATE PROSPECTS BASED ON THE ASSUMPTION CLINTON'S PACKAGE WILL CLEAR CONGRESS REACTION FROM EXECUTIVES RANGED FROM DELIGHT TO DISMAY SOME SMALLBUSINESS OWNERS MAY EXPAND AND HIRE IN THE WAKE OF THE PLAN BUT OTHERS ARE HOLDING BACK SPENDING WOULD TOTAL 15 TRILLION IN THE YEAR BEGINNING OCT 1 UNDER CLINTON'S PLAN UP 26 FROM THE CURRENT YEAR THE PROPOSED ENERGY TAX WOULD HIT SOME INDUSTRIES MUCH HARDER THAN OTHERS ALUMINUM AND PAPER FIRMS WOULD BE SOCKED ESPECIALLY HARD COMPANIES MAY BE ABLE TO GET AROUND CLINTON'S PROPOSAL TO DISALLOW DEDUCTIONS FOR EXECUTIVE PAY OF MORE THAN 1 MILLION CONSULTANTS SAY LINKING PAY TO PERFORMANCE COULD ALLOW THE DEDUCTION TO BE MAINTAINED CONSUMER PRICES JUMPED 05 IN JANUARY THEIR BIGGEST RISE IN TWO YEARS THE FED MEANTIME SAID INDUSTRIAL PRODUCTION ROSE 04 IN JANUARY ITS FOURTH STRAIGHT MONTHLY INCREASE NEW CLAIMS FOR UNEMPLOYMENT BENEFITS FELL FOR THE THIRD STRAIGHT WEEK BOEING PLANS TO SLASH ITS PAYROLL BY 28000 JOBS OR 20 THROUGH 1994 MOST OF THE CUTBACKS WHICH EXCEEDED ANALYSTS' EXPECTATIONS WILL COME DURING THE SUMMER AND FALL OF THIS YEAR SONY IS SENDING RON SOMMER HEAD OF ITS US CONSUMER ELECTRONICS BUSINESS TO EUROPE TO RUN THE COMPANY'S TROUBLED HARDWARE OPERATIONS THERE SONY MEANTIME REPORTED A 62 DROP IN THIRDQUARTER PRETAX EARNINGS AT&T PLANS MAJOR CHANGES IN THE WAY IT SELLS ITS LONGDISTANCE SERVICE TO RESIDENTIAL CLIENTS AFTER LOSING GROUND TO RIVALS IN THE CONSUMER MARKET THE FED IS INVESTIGATING ALLEGATIONS OF IMPROPER TRADING PRACTICES IN THE HUGE MARKET FOR DEVELOPINGCOUNTRY LOANS PROSECUTORS IN MANHATTAN ARE ALSO TAKING PART IN THE INQUIRY COCACOLA SAID ITS LONGTIME PRESIDENT DONALD R KEOUGH WILL RETIRE IN APRIL THE COMPANY PROMOTED TWO SENIOR OFFICERS TO ASSUME HIS DUTIES CREATING AN APPARENT SUCCESSION RACE MERCEDESBENZ HAS ASSIGNED A HIGH PRIORITY TO THE US AS THE POSSIBLE SITE FOR A NEW PLANT TO BUILD ITS PROPOSED RECREATIONAL VEHICLE A GROUP OF CELLULAR PHONE FIRMS IN THE US AND CANADA PLAN TO ESTABLISH COMMON STANDARDS AND OFFER SERVICE UNDER A NEW BRAND NAME MOBILINK TURNER BROADCASTING IS SCRAPPING ITS SUPERMARKET CHECKOUT CHANNEL IN A RETREAT FROM ITS PLANS TO EXPAND PROGRAMMING OUTSIDE THE HOME NEW YORK MERCANTILE EXCHANGE CHAIRMAN Z LOU GUTTMAN REFUSED TO RESIGN A DAY AFTER BEING CHARGED WITH CIVIL VIOLATIONS OF COMMODITY LAWS BONDS LEHMAN BROTHERS TREASURY INDEX 492961 UP 4662 COMMODITIES OIL 1942 A BARREL UP NINE CENTS DOW JONES FUTURES INDEX 12601 UP 077 SPOT INDEX 12530 OFF 006 DOLLAR 11925 YEN OFF 040 16325 MARKS UP 00072 9302190056 930219 BUSINESS BRIEF TIFFANY & CO RETAILER RECALLS CHINA WARE DUE TO HIGH LEAD LEVELS TIFFANY & CO SAID IT IS VOLUNTARILY RECALLING ITS HANDPAINTED MADETOORDER FRENCH CHINA BECAUSE THE PRODUCT MAY EXPOSE USERS TO HIGH LEVELS OF LEAD IN A RELEASE ISSUED JOINTLY WITH THE ENVIRONMENTAL DEFENSE FUND WHICH IDENTIFIED THE PROBLEM THROUGH A NATIONWIDE TESTING PROGRAM TIFFANY IN NEW YORK SAID IT SENT RECALL LETTERS TO 406 CUSTOMERS WHO HAVE PURCHASED THE PRIVATESTOCK CHINA THE PATTERNS CAN BE IDENTIFIED WITH THE LABEL TIFFANY & CO PRIVATE STOCK HAND PAINTED MADE IN FRANCE HANDPAINTED IN RED OR BLUE TIFFANY SAID THE RECALL DOESN'T AFFECT ITS PRIVATESTOCK GIFTWARE OR TIFFANY & CO BRAND CHINA MICHAEL KOWALSKI EXECUTIVE VICE PRESIDENT SAID THE AMOUNT OF SALES REPRESENTED BY THE RECALL IS MATERIALLY INSIGNIFICANT 9302190055 930219 SUSAN CRISSEY'S JOB IS MAKING ANIMALS EAT THEIR SPINACH A NUTRITIONIST CONCOCTS DIETS GOOD FOR CAPTIVE DINERS A BOILED SNAKE FOR LUNCH BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL BROOKFIELD ILL THE COMMISSARY AT THE BROOKFIELD ZOO IS NO PLACE FOR THE SQUEAMISH ESPECIALLY ON TUESDAYS WHEN SOME OF THE FRESHEST FOOD ARRIVES THE BACK DOOR OPENS TO THE PIERCING RING OF AN ALARM BELL A DELIVERYMAN BRINGS IN TWO BOXES OF LIVE MUNCHIES FROM RAINBOW MEALWORMS INC OF COMPTON CALIF THESE ARE EARMARKED FOR THE LILACBREASTED ROLLERS AND MANY OTHER ZOO BIRDS SOON THE BELL RINGS AGAIN ANOTHER BOX ARRIVES THIS ONE RESEMBLING A GIANT PIZZA BOX BUT WITH PERFORATED WALLS THE SOFT CHIRPING FROM THE CHICKS WITHIN MEANS THE OWLS AND OTHER ZOO CARNIVORES WILL SOON GET A FAVORITE TREAT OLDER BIGGER CHICKENS LOITER IN A CAGE DOWNSTAIRS PRESUMABLY UNAWARE THAT THEY TOO APPEAR ON SOMEONE'S MENU THEY'RE FOR THE ALLIGATORS SAYS SUSAN CRISSEY BROOKFIELD'S ANIMAL NUTRITIONIST ZOOS ARE FOREVER TELLING VISITORS NOT TO FEED THE ANIMALS AND FOR GOOD REASON EACH ANIMAL HAS ITS OWN DIET FEW PEOPLE KNOW THIS BETTER THAN MS CRISSEY ONE OF ONLY FIVE PHDEQUIPPED NUTRITIONISTS EMPLOYED BY THE NATION'S ZOOS AS BROOKFIELD'S JULIA CHILD SHE DEVISES MENUS FOR SOME 2500 CREATURES GREAT AND SMALL FROM FOREGUT FERMENTERS LIKE BUFFALO TO HINDGUT FERMENTERS LIKE ZEBRAS FROM TINY BATS TO A 10500POUND ELEPHANT NAMED AFFIE KEEPING ABREAST OF THE VARIETY INHERENT IN THE ZOO'S ROUTINE DIETS IS TAXING IN ITSELF BUT THERE'S ALWAYS SOME CREATURE WHO NEEDS EXTRA ATTENTION SAM ORANG A DIABETIC ORANGUTAN HAS TO WATCH HIS SUGAR HE DRINKS ARTIFICIALLY SWEETENED TANG OLIVER AN OVERWEIGHT AARDVARK IS NOW ON A WEIGHTLOSS DIET CLAUDE A PALESTINIAN MOLE RAT NEEDS TO PORK UP ZOOS CONFRONT SOME DECIDEDLY DISTINCTIVE TASTES VAMPIRE BATS NEED THEIR COW BLOOD TASMANIAN DEVILS STOUT VORACIOUS LITTLE FLESH EATERS CRAVE CHICKEN HEADS KING COBRAS ARE NOTORIOUSLY PICKY OR IN ZOO JARGON STENOPHAGIC IN THE WILD THEY EAT ONLY SNAKES BUT PARASITEFREE FEEDER SNAKES ARE EXPENSIVE TO GET KING COBRAS TO EAT MICE INSTEAD ZOOS RESORT TO THE LOWEST SORT OF TRICKERY A RECENT ISSUE OF ZOO LIFE MAGAZINE PRINTED A RECIPE FROM THE OKLAHOMA CITY ZOO FOR SERPENT SLUMGULLION A THICK SOUP OF BOILED RAT SNAKE USED TO IMPART THE REQUISITE SNAKE FLAVOR TO MICE AND TO PINKIES HAIRLESS DAYOLD MOUSE PUPS LET COOL THE RECIPE SAYS DIP MICE OR PINKIES IN SOUP AND SERVE IMMEDIATELY FORTUNATELY A SUPPLIER EXISTS FOR JUST ABOUT EVERY APPETITE JIMENY CRICKET FARM INC OF RICHMOND VA SELLS CRICKETS A DELICACY FOR PRIMATES BROOKFIELD'S ORANGUTANS LIKE TO POP LIVE CRICKETS INTO THEIR MOUTHS AND JUST HOLD THEM THERE AS THE INSECTS BOUNCE AROUND INSIDE ARBICO OF TUCSON ARIZ SELLS MAGGOTS WE PREFER TO CALL THEM FLY LARVAE SAYS SHERI HERRERA DE FREY VICE PRESIDENT EVER MINDFUL OF PUBLIC SENSIBILITIES THE COMPANY NAMED ITS STANDARD LIVE MAGGOTS TINY WIGGLERS DRIED DEAD WIGGLERS ARE WIGGLER TEMPURA WE WANT PEOPLE TO FEEL GOOD ABOUT THEM SAYS MS HERRERA DE FREY TINY WIGGLERS THEY JUST SOUND SO DARLING DON'T THEY ODDLY NO US ZOO HAD A FULLTIME NUTRITIONIST UNTIL THE NATIONAL ZOO IN WASHINGTON HIRED ONE IN 1978 ONLY BROOKFIELD THE BALTIMORE ZOO AND THE BRONX ZOO RECENTLY RENAMED THE INTERNATIONAL WILDLIFE CONSERVATION PARK/BRONX ZOO HAVE DONE LIKEWISE THOUGH ZOOS ELSEWHERE OFTEN SEEK THEIR ADVICE ZOOS PREVIOUSLY HAD USED A SOCALLED CAFETERIA APPROACH TO FEEDING ANIMALS OFFERING A BROAD ARRAY OF FOODS KNOWN TO BE NUTRITIOUS AND LETTING ANIMALS CHOOSE WHAT THEY WANTED BUT HIDDEN DEFICIENCIES TOOK THEIR TOLL ELEPHANTS THAT GOT TOO LITTLE VITAMIN E CAME DOWN WITH DEBILITATING WHITEMUSCLE DISEASE LIONS THAT ATE ONLY MEAT WOUND UP WITH ATROPHIED BONES THEIR DIETS LACKED THE CALCIUM THEY WOULD HAVE GOTTEN IN THE WILD BY CRUNCHING ON THE RIBS OF PREY THE NEW AWARENESS OF ZOO NUTRITION EVOLVED IN TANDEM WITH OTHER ZOO TRENDS IN PARTICULAR THE MOVEMENT OF THE LAST TWO DECADES TO MAKE ANIMAL HABITATS AND DIETS MORE REALISTIC SOME ZOOS TOOK THIS TO EXTREMES AS DID THE DETROIT ZOO UNTIL 1991 IT KILLED SURPLUS ANIMALS AND FED PORTIONS TO ITS CARNIVORES THE ZOO'S VULTURES FOR EXAMPLE DINED ON SCIMITARHORNED ORYX A KIND OF ANTELOPE BUT SUCH REALISM WORKS BETTER IN THEORY THAN IN PRACTICE PEOPLE LIKE TO SEE THE CUTE POLAR BEAR SAYS KAREN FULTON THE BALTIMORE ZOO'S NUTRITIONIST THEY DON'T WANT TO SEE HIM RIPPING THE HEAD OFF A HARP SEAL PUP STILL SOME ANIMALS WON'T EAT ANYTHING BUT LIVE FOOD THE NATIONAL ZOO FOR EXAMPLE FINDS IT MUST FEED LIVE MICE TO ITS TAWNY FROGMOUTHS SMALL BIRDS WITH GAPING MAWS JUST BEFORE FEEDING TIME THE ZOO MAKES AN ANNOUNCEMENT SUGGESTING THAT SQUEAMISH VISITORS MOVE ALONG LIVE PREY POSES SOME PRACTICAL DRAWBACKS FOR ONE THING IT CAN ESCAPE IT CAN ALSO FIGHT BACK SAYS BROOKFIELD'S MS CRISSEY IF YOU'VE GOT A LITTLE SNAKE AND IT'S TRYING TO GO AFTER A MOUSE AND THE MOUSE BITES IT THEN SUDDENLY YOU'VE GOT A VET PROBLEM FOR SOME ANIMALS FROZEN FOOD OFFERS A HAPPY SOLUTION MS CRISSEY WALKS INTO THE COMMISSARY FREEZER KEPT AT 20DEGREES BELOW ZERO HERE ARE BOX UPON BOX OF FROZEN SMELT MACKEREL AND HERRING SHE OPENS A BIG YELLOW BIN MARKED MICE AND RATS AND PULLS OUT A PLASTIC BAG PACKED WITH DOZENS OF FROZEN PINKIES THE COMMISSARY ALSO STORES LESS EXOTIC FARE CASES OF PEACH NECTAR FIVEPOUND TUBS OF PEANUT BUTTER KRETSCHMER WHEAT GERM FOR THE BATS GERBER BABY CEREAL HUGE BOXES OF PASTA AND 50POUND BAGS OF ALL SORTS OF COMMERCIAL ANIMAL FEED MS CRISSEY SPENDS HER DAYS TINKERING WITH DIETS AND REGULARLY SALLIES FORTH FOR HER FAVORITE PART OF THE JOB WATCHING THE ANIMALS THE DIVERSITY SHE ENCOUNTERS EACH DAY IS IMMEDIATELY EVIDENT AS SHE STROLLS THROUGH TROPIC WORLD A MAMMOTH INDOOR EXHIBIT COMPLETE WITH INTERIOR THUNDERSTORMS FROM HIGH ON A WALKWAY OVERLOOKING A BIG FAKE CANYON SHE POINTS FIRST TO HOSE NOSE A GIANT ANTEATER SNUFFLING ALONG THE FAR WALL HE GETS CAT FOOD SHE SAYS THE TAPIR WADING THROUGH A SHALLOW POOL DIRECTLY BELOW GETS HAY AND HERBIVORE PELLETS THE SLOTH THAT BAG OF HAIR MS CRISSEY LAUGHS POINTING TO A CLUMP OF FUR PROTRUDING FROM A TREE TRUNK NEEDS ITS FRUIT CUT INTO LONG THIN STRIPS THE VULTURE ON A BRANCH HIGH OVERHEAD GETS HORSEMEAT AND DEAD RATS FRESHLY EUTHANIZED DEAD RATS NOT ROADKILL HE'S GETTING WHAT HE NEEDS MS CRISSEY SAYS BUT IT'S NOT GROSS IT HASN'T BEEN SITTING OUT FOR TWO DAYS TREATS SHE SAYS ARE A NUTRITIONIST'S BANE WHEN THE ORANGUTANS BEGAN GAINING WEIGHT TOO QUICKLY SHE SLASHED PEANUTS AND RAISINS ELIMINATED THE EGGS THE ORANGUTANS WERE NOT PLEASED THEY BECAME AGITATED AND STARTED SPITTING AT THEIR KEEPERS MS CRISSEY WAS UNMOVED PEOPLE CALL ME THE GRINCH THAT STOLE PRODUCE SHE SAYS BUT I'M NOT THE GRINCH I'M JUST TRYING TO GET BETTER CONTROL OVER WHAT THE ANIMALS GET SHE HAS HER OWN WEAKNESSES HOWEVER OVER A LUNCH OF SAUSAGE PIZZA SHE CONFESSES THAT HER USUAL LUNCH IS FRENCH FRIES DRENCHED IN MELTED CHEESE OR SHE ADDS MAYBE A COUPLE OF CHOCOLATECHIP COOKIES 9302190054 930219 WHAT'S NEWS WORLDWIDE CLINTON'S PLAN RECEIVED A GENERALLY FAVORABLE PUBLIC RECEPTION IN WASHINGTON DEMOCRATS TENDED TO RALLY BEHIND THE PRESIDENT DESPITE A FEW MISGIVINGS REPUBLICANS LAUNCHED PREDICTABLE ATTACKS BUT DIDN'T COALESCE BEHIND ANY ALTERNATIVE REACTIONS FROM THE PUBLIC AND FROM FINANCIAL MARKETS WERE ABOUT AS GOOD AS THE WHITE HOUSE HAD ANTICIPATED TWO POLLS FOUND A SUBSTANTIAL MAJORITY BELIEVE CLINTON IS PROPOSING TO RAISE TAXES IN A FAIR MANNER IN ST LOUIS CLINTON ENCOUNTERED PLACARDS READING OUR CHILDREN'S FUTURE STARTS TODAY AND NO GUTS NO GLORY DOUBTERS' SIGNS READ TAXES TAXES TAXES AND BILL LIED THE SENATE VOTED TO CONTINUE TO BAR HIVINFECTED PEOPLE FROM IMMIGRATING HANDING CLINTON HIS FIRST MAJOR LEGISLATIVE SETBACK THE LAWMAKERS VOTED 7623 TO BLOCK THE PRESIDENT FROM LIFTING A BAN ON IMMIGRATION BY PEOPLE INFECTED WITH THE AIDS VIRUS FIVE SECURITY COUNCIL MEMBERS AGREED TO SEEK ESTABLISHMENT OF AN INTERNATIONAL COURT TO PUNISH WAR CRIMINALS IN THE FORMER YUGOSLAVIA THE US BRITAIN FRANCE AND RUSSIA HAD BACKED THE CONCEPT BUT DIDN'T GET THE SUPPORT OF THE FIFTH PERMANENT MEMBER CHINA UNTIL YESTERDAY UN AIDES SAID BOSNIAN SERBS DEALT A BLOW TO PEACE TALKS IN NEW YORK BY ANNOUNCING A BOYCOTT OF TODAY'S NEGOTIATIONS MEANWHILE UN CHIEF BOUTROSGHALI ASKED A UN RELIEF OFFICIAL IN BOSNIA TO REVERSE HER DECISION TO SUSPEND MOST AID OPERATIONS THERE CHRISTOPHER CHALLENGED ARABS AND ISRAELIS TO STRIKE COMPROMISES QUICKLY OR RISK DIMINISHED US INTEREST IN PRESSING THE MIDEAST PEACE PROCESS THERE ARE IMPORTANT OPPORTUNITIES HERE THAT SHOULD NOT BE MISSED BY THE PARTIES THE SECRETARY OF STATE SAID ON HIS ARRIVAL IN CAIRO THE FIRST STOP ON A WEEKLONG VISIT TO THE REGION A HOUSE PANEL SPLIT ALONG PARTY LINES IN VOTING TO EXTEND FEDERAL JOBLESS BENEFITS THROUGH NEXT JANUARY THE 56 BILLION PLAN WHICH IS EXPECTED TO BE BROUGHT TO THE HOUSE FLOOR WEDNESDAY WOULD ALLOW UNEMPLOYED WORKERS TO RECEIVE AS MUCH AS AN ADDITIONAL 26 WEEKS OF BENEFITS AFTER EXHAUSTING STATE AID AN OVERLOADED FERRYBOAT SANK DURING A RAINSTORM OFF HAITI AND MORE THAN 1000 PASSENGERS WERE MISSING AND FEARED DEAD US COAST GUARD CUTTERS AND PLANES WERE DISPATCHED TO HELP IN THE RESCUE EFFORT THE 150FOOTLONG FERRY WAS MAKING AN OVERNIGHT CROSSING TO PORTAUPRINCE FROM A SOUTHERN PORT WHEN IT SANK EARLY WEDNESDAY A GUNMAN SEIZED A HOSTAGE AT A HAITIAN AIRPORT HIJACKED A MISSIONARY GROUP'S PLANE WITH 12 ABOARD AND ORDERED IT TO MIAMI BUT THE MAN SURRENDERED TO OFFICIALS WHEN THE PLANE REACHED THE US THE AFRICAN NATIONAL CONGRESS GAVE FORMAL APPROVAL TO A JOINT GOVERNING ARRANGEMENT WITH WHITES AND OTHER SOUTH AFRICAN PARTIES FOR UP TO FIVE YEARS AFTER THE END OF APARTHEID THE ANNOUNCEMENT FOLLOWING THREE DAYS OF MEETINGS BY THE ANC'S TOP LEADERS WAS SEEN AS A KEY COMPROMISE IN BLACKWHITE POLITICAL NEGOTIATIONS FORMER PRESIDENT CARTER SAID HE HAS BEEN INVITED TO ENTER NEGOTIATIONS BETWEEN NORTH AND SOUTH KOREA AND WILL ASK SECRETARY OF STATE CHRISTOPHER NEXT WEEK FOR PERMISSION TO BEGIN THE TALKS HE SAID THE BUSH ADMINISTRATION HAD ASKED HIM NOT TO GET INVOLVED WHEN THE KOREAS ISSUED EARLIER REQUESTS FOR HIS ASSISTANCE SIX PROSPECTIVE JURORS WERE DISMISSED FROM HEARING THE FEDERAL TRIAL OF FOUR WHITE POLICEMEN CHARGED IN THE RODNEY KING BEATING CASE IN LOS ANGELES THOSE DISMISSED INCLUDED A BLACK WOMAN AN ASIAN WOMAN AND A HISPANIC MAN DEFENSE ATTORNEYS HAD INDICATED THEY WOULD TRY TO REMOVE AT LEAST ONE BLACK PROSPECTIVE JUROR AN EXTEXAS CONGRESSMAN WAS CHARGED ALONG WITH HIS WIFE IN AN INDICTMENT THAT ACCUSES HIM OF RECEIVING PAYOFFS THE JUSTICE DEPARTMENT SAID ALBERT BUSTAMANTE A DEMOCRAT WHO SERVED IN CONGRESS FROM 1985 UNTIL LAST MONTH WAS CHARGED WITH CONDUCTING THE AFFAIRS OF HIS OFFICE AS A CRIMINAL RACKETEERING ENTERPRISE THE US SAID IT WOULD BEGIN PULLING 3000 TROOPS OUT OF SOMALIA A US MILITARY AIDE TOLD REPORTERS THE PULLOUT WHICH WOULD LEAVE 15000 US SOLDIERS IN SOMALIA WAS EXPECTED TO TAKE LESS THAN TWO WEEKS TO COMPLETE MEANWHILE A SNIPER WOUNDED AN AUSTRALIAN SOLDIER IN MOGADISHU 9302190053 930219 BUSINESS BRIEF CENTRAL RESERVE LIFE CORP FOURTHPERIOD NET EXPECTED TO FALL SHORT OF ESTIMATES CENTRAL RESERVE LIFE CORP CITING HIGHER THAN EXPECTED RESERVES SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME FELL SHORT OF ANALYSTS' EXPECTATIONS OF 35 CENTS A SHARE THE STRONGSVILLE OHIO COMPANY BLAMED THE RESERVE INCREASE ON MORE NEW PREMIUMS AND MORE BIG CLAIMS IN THE QUARTER IN 1991'S FOURTH QUARTER NET WAS 168 MILLION OR 41 CENTS A SHARE BUT THE INSURANCE COMPANY SAID IT EXPECTED TO REPORT THAT FULLYEAR 1992 RESULTS WERE BETTER THAN THE PREVIOUS YEAR IN 1991 CENTRAL RESERVE REPORTED NET OF 337 MILLION OR 82 CENTS A SHARE CENTRAL RESERVE ALSO SAID IT ADOPTED THE FINANCIAL ACCOUNTING STANDARDS BOARD'S RULE NO 109 LAST YEAR WHICH CHANGES THE WAY IT ACCOUNTS FOR INCOME TAXES THAT WILL HAVE AN AS YET UNDETERMINED IMPACT ON NET IN 1992 AND 1991 THE COMPANY EXPECTS TO RELEASE MORE DETAILS BY MARCH 5 9302190052 930219 CREDIT RATINGS SHAWMUT NATIONAL AND UNITS' RATINGS ON DEBT UPGRADED NEW YORK MOODY'S INVESTORS SERVICE INC RAISED THE DEBT AND PREFERRED STOCK RATINGS OF SHAWMUT NATIONAL CORP ITS SUBSIDIARY BANK HOLDING COMPANIES AND ITS BANK UNITS REFLECTING CONTINUED PROGRESS IN REDUCING PROBLEM ASSETS AND RAISING CAPITAL ADEQUACY THE RATINGS AFFECT ABOUT 28 BILLION IN LONGTERM DEBT REPRESENTING ALL OF SHAWMUT'S DEBT ISSUES MOODY'S NOTED THAT ALTHOUGH THE HARTFORD CONN COMPANY'S NONPERFORMING ASSETS AND COMMERCIAL REAL ESTATE EXPOSURE REMAIN HIGH ASSET QUALITY AND CORE PROFITABILITY HAVE IMPROVED SIGNIFICANTLY THE AGENCY SAID IT ANTICIPATES FURTHER IMPROVEMENTS OVER THE MEDIUM TERM BUT IT CAUTIONED THAT THE REGIONAL ECONOMY IS STILL WEAK WITH COMPETITION INTENSIFYING IN CORE MARKETS MOODY'S ALSO NOTED THAT SHAWMUT REMAINS BURDENED WITH HIGH OVERHEAD A SPOKESMAN FOR SHAWMUT SAID THE RATINGS UPGRADES RECOGNIZE THAT WE'VE MADE STRIDES IN REDUCING PROBLEMS ASSETS THE VOTE OF CONFIDENCE IS MOST WELCOME HE SAID SHAWMUT IS PARTICULARLY PLEASED THAT SOME DEBT WAS RAISED TO INVESTMENT GRADE UPGRADED WERE SHAWMUT'S SENIOR SHELF REGISTRATION TO BAA3 FROM BA1 ITS SUBORDINATED DEBT TO BA1 FROM BA3 ITS CUMULATIVE PREFERRED STOCK RATING TO BA2 FROM BA3 AND THE NONCUMULATIVE PREFERRED STOCK SHELF REGISTRATION TO BA3 FROM B1 ITS RATING FOR COMMERCIAL PAPER WAS RAISED TO PRIME3 FROM NOT PRIME MOODY'S ALSO RAISED THE RATINGS ON DEBT ISSUES OF SHAWMUT UNITS 9302190051 930219 CORRECTIONS & AMPLIFICATIONS AN ARTICLE YESTERDAY INCORRECTLY SAID THAT A FEDERAL MANDATE REQUIRING STATE MEDICAID PROGRAMS TO PAY FOR HOME HEALTH CARE WOULD BE ELIMINATED UNDER A PROPOSAL BY PRESIDENT CLINTON THE CORPORATE INCOME TAX RATE WOULD REMAIN AT 34 FOR COMPANIES WITH ANNUAL TAXABLE INCOME OF LESS THAN 10 MILLION UNDER PRESIDENT CLINTON'S ECONOMIC PLAN YESTERDAY A LIST OF WINNERS AND LOSERS UNDER THE PLAN ERRONEOUSLY DESCRIBED THE THRESHOLD BELOW WHICH THE RATE WOULDN'T CHANGE AS APPLYING TO COMPANIES WITH ANNUAL SALES OF LESS THAN 10 MILLION ELI LILLY & CO DIDN'T INCUR STAFF REDUCTIONS AS A RESULT OF A RESTRUCTURING PROGRAM IN 1992 WEDNESDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID THE COMPANY HAD CUT ITS WORK FORCE M KATHRYN EICKHOFF IS PRESIDENT OF EICKHOFF ECONOMICS INC A NEW YORKBASED ECONOMIC CONSULTING FIRM TUESDAY'S REPORT ON CORPORATE PERFORMANCE INCORRECTLY IDENTIFIED HER AS AN ANALYST 9302190050 930219 BUSINESS BRIEF HUMANA INC TWO FIRMS WILL BE FORMED FOLLOWING SHAREHOLDER VOTE HUMANA INC LOUISVILLE KY SAID SHAREHOLDERS APPROVED THE COMPANY'S PLAN TO SPLIT INTO A HEALTHPLAN CONCERN AND A HOSPITAL COMPANY HUMANA WILL OPERATE THE HEALTHPLAN BUSINESS WHICH SERVES 17 MILLION MEMBERS AND GALEN HEALTH CARE INC WILL OWN AND OPERATE 76 HOSPITALS IN THE US AND EUROPE SHAREHOLDERS AS OF MARCH 1 WILL RECEIVE ONE SHARE OF GALEN COMMON STOCK FOR EACH SHARE OF HUMANA THEY HOLD THE SHARES WILL BE DISTRIBUTED ON MARCH 5 GALEN WILL TRADE ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL GHC HUMANA'S ORIGINAL STRATEGY WAS TO FUNNEL PATIENTS FROM ITS HEALTH MAINTENANCE OPERATIONS TO ITS HOSPITALS BUT THE PLAN FAILED WHEN COMPETING HMOS QUIT SENDING PATIENTS TO HUMANA HOSPITALS ON TOP OF THAT INDEPENDENT DOCTORS WHO COMPETE WITH HMOS STOPPED REFERRING PATIENTS TO HUMANA HOSPITALS 9302190049 930219 BUSINESS BRIEF MOLSON COS FIRM TO SELL LUMBER STORES IN RETAILING STRATEGY SHIFT MOLSON COS SAID IT PLANS TO CLOSE OR SELL ITS BEAVER LUMBER RETAIL STORES IN LARGE CITIES IN ORDER TO FOCUS ITS MARKETING IN THESE URBAN AREAS ON ITS NEW CHAIN OF HOMEIMPROVEMENT WAREHOUSE OUTLETS MOLSON OPENED ITS FIRST WAREHOUSESTYLE STORE UNDER THE AIKENHEAD'S NAME IN A TORONTO SUBURB IN APRIL AND THE COMPANY SAYS SALES SO FAR HAVE EXCEEDED ITS EXPECTATIONS THREE AIKENHEAD'S STORES ARE NOW OPEN IN ONTARIO AND MORE ARE PLANNED THE TORONTO COMPANY WHICH ALSO HAS INTERESTS IN BREWING AND CLEANING PRODUCTS SAID THAT 20 TO 30 BEAVER LUMBER STORES OUT OF A TOTAL OF 168 STORES ACROSS CANADA WILL BE CLOSED OR SOLD OVER THE NEXT TWO YEARS AFFECTING AS MANY AS 1200 EMPLOYEES MOLSON SAID THE SIZE OF ANY CHARGE AGAINST ITS EARNINGS BECAUSE OF THE CLOSURES WILL DEPEND ON HOW MANY OF THE STORES CAN BE SOLD MOLSON'S RETAIL OPERATIONS ACCOUNTED FOR ALMOST ONEFIFTH OF ITS TOTAL SALES OF 238 BILLION CANADIAN DOLLARS US188 BILLION IN THE NINE MONTHS ENDED DEC 31 9302190048 930219 BUSINESS BRIEF DEVON ENERGY CORP SHARP INCREASE TO BE POSTED IN FOURTHQUARTER EARNINGS DEVON ENERGY CORP OKLAHOMA CITY EXPECTS TO REPORT FOURTHQUARTER NET INCOME ROSE ALMOST SEVENFOLD LARGELY BECAUSE OF SIZABLE PRODUCTION INCREASES SAID ALLEN TURNER VICE PRESIDENT FOR CORPORATE DEVELOPMENT QUARTERLY EARNINGS WILL BE IN THE RANGE OF 71 MILLION TO 75 MILLION OR 35 CENTS TO 38 CENTS A SHARE COMPARED WITH 1 MILLION OR SIX CENTS A SHARE EARNED A YEAR EARLIER MR TURNER SAID IN AN INTERVIEW HIGHER NATURAL GAS PRICES IN THE SECOND HALF OF THE YEAR ALSO CONTRIBUTED TO THE EARNINGS GROWTH HE SAID FOR THE YEAR DEVON EXPECTS TO REPORT NET OF 143 MILLION TO 149 MILLION OR 91 CENTS TO 96 CENTS A SHARE COMPARED WITH A LOSS OF 15 MILLION OR 199 A SHARE A YEAR EARLIER AFTER A WRITEDOWN OF THE VALUE OF OIL AND GAS PROPERTIES WITHOUT THE WRITEDOWN THE COMPANY WOULD HAVE EARNED 28 MILLION OR 30 CENTS A SHARE 9302190047 930219 HANDS ON CLINTON'S ATTENTION TO EVEN TINY DETAILS SHAPED HIS BUDGET DEBATES BY PRESIDENT'S TEAM CAUSED CHANGES DELAYS BENTSEN HAD A BIG ROLE PUBLIC'S VIEW SO FAR POSITIVE BY ALAN MURRAY AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN THE NEARLY 50 HOURS OF MEETINGS THAT LED TO THE UNVEILING OF HIS ECONOMIC PLAN PRESIDENT CLINTON DISPLAYED THE REMARKABLE KNOWLEDGE OF GOVERNMENT POLICY THAT IS HIS GREAT STRENGTH AS PRESIDENT BUT HE ALSO EXHIBITED A TENDENCY THAT MAY PROVE HIS GREATEST WEAKNESS AN IRRESISTIBLE URGE TO MANAGE EVEN THE SMALLEST AFFAIRS OF HIS GOVERNMENT PARTICIPANTS IN THE LONG GRUELING SESSIONS SAY THERE WAS SCARCELY A DETAIL OF THE PLAN THAT WASN'T REVIEWED AND QUESTIONED BY THE PRESIDENT HIMSELF DEBATE CONTINUED SOMETIMES FOR AS LONG AS AN HOUR ON A SINGLE ISSUE SUCH AS FUNDING FOR THE SPACE STATION UNTIL HE MADE A DECISION AND WHEN THE PRESIDENT LEFT THE ROOM TO TAKE AN IMPORTANT TELEPHONE CALL OR TEND TO A FOREIGNPOLICY PROBLEM CONVERSATION DRIFTED AS OFFICIALS AWAITED HIS RETURN EVEN THE SMALLEST ISSUES OF GOVERNMENT DIDN'T ESCAPE HIS ATTENTION AFTER AGREEING TO RAISE GRAZING FEES ON GOVERNMENT LAND INCREASE USER FEES ON INLAND WATERWAYS AND SELL OFF PORTIONS OF THE RADIO SPECTRUM MR CLINTON QUIPPED TO AIDES PEOPLE ARE GOING TO SAY I SOLD THE LAND I SOLD THE WATER AND WHEN I COULDN'T GET ENOUGH MONEY I EVEN TRIED TO SELL THE AIR DECISIONS WERE MADE REMADE AND THEN MADE AGAIN THE PRESIDENT'S INTENSE INVOLVEMENT MADE DEADLINES MEANINGLESS WHILE BUDGET NUMBERS ARE USUALLY COMPLETED MORE THAN A WEEK BEFORE THEY ARE RELEASED MR CLINTON AND HIS AIDES WERE FIDDLING WITH DETAILS AS LATE AS 2 AM WEDNESDAY THE VERY DAY OF THE SPEECH SUCH TINKERING PROMPTED A DELAY IN THE RELEASE OF THE PRINTED DOCUMENT ON THE PLAN UNTIL YESTERDAY EVEN THE TITLE WAS THE SUBJECT OF A LASTMINUTE WHITE HOUSE DISCUSSION MR CLINTON'S DEFENDERS SAY THAT UNLIKE FORMER PRESIDENT CARTER WHO WAS SOMETIMES PERCEIVED AS GETTING LOST IN THE TREES MR CLINTON ALSO SEES THE FOREST A LOT OF PEOPLE UNDERSTAND THE LARGE CONCEPTS WITHOUT KNOWING DETAILS OTHERS GET MIRED IN THE DETAILS WITHOUT SEEING THE BIG PICTURE HE CAN DO BOTH SAYS ROBERT RUBIN WHO HEADS THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL MOREOVER MR CLINTON'S OBVIOUS GRASP OF THE DETAILS OF HIS PLAN IS ONE REASON HIS SPEECH TO CONGRESS AND THE NATION WAS SUCH A SMOOTH PERFORMANCE AND THE INITIAL REACTION YESTERDAY SUGGESTED THE PRESIDENT'S PRESENTATION PLAYED WELL AROUND THE COUNTRY EARLY POLLS SUGGEST THAT DESPITE REPUBLICAN CARPING THE PUBLIC'S REACTION WAS POSITIVE AND MR CLINTON'S IMMERSION NOW ALLIES SUGGEST IS A SIGN HE USED CONSTRUCTION OF HIS ECONOMIC PLAN AS A CRASH COURSE IN LEARNING THE DETAILS OF GOVERNMENT IF IT APPEARS HE'S TRYING TO MICROMANAGE IT'S TEMPORARY AND HE'LL GET OVER IT SAYS SEN DAVID PRYOR AN ARKANSAS DEMOCRAT AND ALLY OF MR CLINTON IN ADDITION WHILE THERE ARE THOSE WHO WILL CRITICIZE THE PRESIDENT FOR CONCENTRATING ON MINUTIAE THERE WERE OTHERS WHO FAULTED FORMER PRESIDENT REAGAN FOR DELEGATING TOO MUCH AUTHORITY OVER GOVERNMENT DETAILS BUT THERE'S NO QUESTION THAT MR CLINTON'S PERSISTENCE WITH THE ECONOMIC PLAN CAUSED SOME PROCEDURAL WOES IN ASSEMBLING THE PACKAGE AND CREATED POLITICAL PROBLEMS ELSEWHERE THE PRESIDENT'S PREOCCUPATION WITH THE PLAN IN FACT AGGRAVATED A SERIES OF EARLY MISCUES IN HIS NASCENT ADMINISTRATION INCLUDING THE EMBARRASSING SEARCH FOR AN ATTORNEY GENERAL AND THE MISHANDLING OF HIS MOVE TO ALLOW HOMOSEXUALS IN THE MILITARY IN THE WAKE OF THOSE EARLY SLIPS CAMPAIGN STRATEGIST JAMES CARVILLE AT ONE MEETING TOLD THE PRESIDENT AND OTHER OFFICIALS I DON'T CARE WHAT YOU DO BUT JUST MAKE DAMN SURE IT'S BIG AND DIFFERENT THE CLINTON PLAN TOOK SHAPE IN MARATHON SESSIONS IN THE WHITE HOUSE'S ROOSEVELT ROOM THE MEETINGS ALWAYS BEGAN LATE AS THE DOZEN OR SO OTHER PARTICIPANTS WAITED FOR 20 MINUTES TO 2 1/2 HOURS FOR THE HABITUALLY LATE PRESIDENT TO ARRIVE ONCE STARTED THE MEETINGS RAN ON FOR HOURS AT FIRST THERE WAS ONLY A PLATE OF COOKIES FOR SUSTENANCE AFTER COMPLAINTS FROM CHIEF ECONOMIC ADVISER LAURA TYSON A PLATE OF FRESH FRUIT WAS ADDED ON ONE OCCASION A DOMINO'S PIZZA WAS ORDERED BUT THE SECRET SERVICE WOULDN'T LET MR CLINTON EAT ANY THE MEETINGS WERE MARKED BY TENSION BETWEEN WHAT MR CLINTON PLEDGED TO DO IN HIS CAMPAIGN AND WHAT HE NEEDED TO DO TO GET THE DEFICIT DOWN THE TWO YOUNGEST PEOPLE AT THE TABLE GENE SPERLING A 34YEAROLD WHITE HOUSE AIDE WHO PULLED TOGETHER CANDIDATE CLINTON'S ECONOMIC PLAN AND GEORGE STEPHANOPOULOS 32 THE WHITE HOUSE COMMUNICATIONS DIRECTOR ARGUED FERVENTLY FOR STICKING CLOSE TO THE CAMPAIGN PROPOSALS BUT BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN WHO BEFORE THEIR APPOINTMENTS HAD BEEN CRITICAL OF THE CAMPAIGN PLAN INSISTED MUCH TOUGHER MEASURES WERE NEEDED TO REIN IN THE DEFICIT DESPITE SUCH PHILOSOPHICAL DIFFERENCES THE MEETINGS WERE LOWKEY THERE WAS NEVER A BITTER MOMENT NOTHING AD HOMINEM IT WAS ALL VERY CORDIAL SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN AND FREQUENTLY THE CORDIALITY ESCALATED INTO LAUGHTER WHEN BUDGET OFFICIALS PROPOSED HAVING THE COAST GUARD CHARGE A USER FEE FOR RESCUING BOATACCIDENT VICTIMS MR CLINTON AND HIS AIDES WENT INTO HYSTERICS IMAGINING A RESCUE WORKER ASKING WHETHER A DROWNING MAN WANTED TO USE VISA OR MASTERCARD VICE PRESIDENT GORE AND LABOR SECRETARY ROBERT REICH EMERGED AS ADVOCATES FOR HIGHER SPENDING URGING MORE DOLLARS FOR THE ENVIRONMENT SPACE TECHNOLOGY EDUCATION AND INFRASTRUCTURE ECONOMIST ALAN BLINDER A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS ALSO HAD A PERMANENT SEAT AT THE MEETINGS GIVING HIM THE SORT OF ACCESS THAT'S USUALLY ONLY AVAILABLE TO THE COUNCIL'S CHAIRMAN BUT IT WAS THE OLDEST MEMBER OF THE GROUP TREASURY SECRETARY LLOYD BENTSEN WHOM THE PRESIDENT TURNED TO TIME AND AGAIN FOR ADVICE ON HOW TO RESOLVE THE DIFFERENCES MR BENTSEN WHOSE 72ND BIRTHDAY WAS CELEBRATED AT ONE OF THE SESSIONS WAS CLEARLY THE FIRST AMONG EQUALS ACCORDING TO SEVERAL PARTICIPANTS HE SERVED AS SAGE COUNSELOR TO THE BABYBOOMER PRESIDENT WHO FREQUENTLY ASKED LLOYD WHAT WOULD YOU DO MR BENTSEN WAS DEFERRED TO FOR HIS KNOWLEDGE OF LEGISLATIVE POLITICS NOT ONLY BY THE PRESIDENT BUT ALSO BY MR GORE A FORMER SENATOR AND BY MR PANETTA A FORMER MEMBER OF CONGRESS MORE OFTEN THAN NOT THE PRESIDENT HEEDED MR BENTSEN'S ADVICE ON CRUCIAL ISSUES THE TREASURY SECRETARY PULLED THE PLUG FOR INSTANCE ON A PANETTARIVLIN PLAN TO CUT COSTOFLIVING ADJUSTMENTS FOR SOCIAL SECURITY AND OTHER GOVERNMENT RETIREMENT PROGRAMS THE BUDGET OFFICIALS SAW THE PLAN WHICH WAS ADJUSTED TO PROTECT SENIOR CITIZENS AT OR BELOW THE POVERTY LINE AS AN IMPORTANT WAY TO MAKE INROADS IN REDUCING SPENDING THE POLITICAL ADVISERS ON THE OTHER HAND WERE STRONGLY OPPOSED MR BENTSEN HELPED TIP THE BALANCE SAYING THAT WHILE IT WAS GOOD POLICY IT WOULD BE POLITICAL SUICIDE BUT ON THE ENERGYTAX QUESTION MR BENTSEN PUSHED THE DEBATE IN THE OTHER DIRECTION BEFORE THE INAUGURATION MR SPERLING HAD PREPARED A BUDGET THAT WOULD HAVE CUT THE DEFICIT WITHOUT RAISING TAXES ON THE MIDDLE CLASS MR BENTSEN HOWEVER JOINED WITH BUDGET OFFICIALS IN ARGUING THAT SUCH A TAX WAS NECESSARY TO MAKE THE PLAN CREDIBLE AND HIS ARGUMENT TOOK ON ADDED WEIGHT WHEN AFTER HE MENTIONED THE POSSIBILITY OF SUCH A TAX ON NBC'S MEET THE PRESS THE BOND MARKET RALLIED AND LONGTERM INTEREST RATES FELL IN THE END HOWEVER IT WAS ALWAYS MR CLINTON WHO HAD THE FINAL SAY AND THE PLAN IS COVERED WITH HIS FINGERPRINTS HE PERSONALLY PUSHED FOR THE FREEZE ON GOVERNMENT WORKERS' PAY FOR INSTANCE AND WHEN PRESENTED WITH A PLANNED EXECUTIVE ORDER TO SLASH ADMINISTRATIVE SPENDING BY 11 OVER FOUR YEARS HE CROSSED OUT THE 11 AT THE LAST MINUTE AND MADE IT 14 HE EVEN WEIGHED IN ON A 1 MILLION COMMERCE DEPARTMENT PROGRAM FOR MINORITY BUSINESS CONDUCTING A 10MINUTE CONVERSATION ON THE SUBJECT WHILE PAST PRESIDENTS MAY HAVE CLAIMED CREDIT FOR THE WORK ON THEIR BUDGETS MR CLINTON ACTUALLY DID IT WHEN WE GET DOWN TO THE NUMBERS HE GOES LINEBYLINE SAYS MR BENTSEN BUT SUCH CAREFUL SCRUTINY CAUSED ENDLESS DELAYS ON THE SATURDAY BEFORE THE PLAN WAS RELEASED THE TEAM WAS STILL A FEW BILLION DOLLARS SHORT OF ITS GOAL OF CUTTING 140 BILLION FROM THE DEFICIT IN FISCAL 1997 MESSRS SPERLING AND STEPHANOPOULOS AS WELL AS MS TYSON ARGUED THEY SHOULDN'T WORRY ABOUT THE SHORTFALL BUT MESSRS BENTSEN AND PANETTA AND MS RIVLIN INSISTED ON HITTING THE GOAL WITH THE DEADLINE FOR FINAL DECISIONS LONG PAST MESSRS CLINTON RUBIN BENTSEN AND PANETTA RETIRED TO THE OVAL OFFICE AND MADE THE FINAL ROUND OF CUTS NECESSARY TO MAKE THE PLAN WORK WHILE MR CLINTON'S POLITICAL ADVISERS WERE USUALLY ABSENT FROM THE ROOM DURING THE DEBATES THEY KEPT IN CLOSE TOUCH WITH THE PROCESS THROUGH CONSTANT COMMUNICATION WITH MR SPERLING THEY WORKED TO GIVE THE CLINTON PACKAGE THE POPULIST VENEER AND PROMIDDLECLASS RHETORIC THAT HELPED PRODUCE THE FAVORABLE INITIAL RECEPTION PAUL BEGALA A CAMPAIGN ADVISER PROVED PARTICULARLY IMPORTANT THOUGH TECHNICALLY ONLY A CONSULTANT TO THE DEMOCRATIC NATIONAL COMMITTEE MR BEGALA HAS MOVED INTO THE WHITE HOUSE AS A FULLTIME VOLUNTEER STAFFER OPERATING WITHOUT AN OFFICE OR EVEN A DESK OR PHONE OF HIS OWN MR BEGALA SPENT THE LAST TWO WEEKS FLOATING FROM OFFICE TO OFFICE HE SPENT LITTLE TIME IN THE ROOSEVELT ROOM MEETINGS BUT WAS CRITICAL IN DRAFTING AN ELABORATE PLAN FOR SELLING THE CLINTON ECONOMIC PLAN INCLUDING HELPING COMPOSE THE TWO TELEVISED SPEECHES IN WHICH IT WAS UNVEILED THIS WEEK THE ROLES OF CAMPAIGN MEDIA ADVISER MANDY GRUNWALD AND POLLSTER STANLEY GREENBERG HAVE GROWN AS WELL AND THE INFLUENCE OF HILLARY RODHAM CLINTON WAS FELT EVEN THOUGH SHE ALSO RARELY ATTENDED THE MEETINGS TO PUT TOGETHER THE PLAN WHEN MR CLINTON WAS REVIEWING THE BRIEF BUT IMPORTANT ADDRESS HE DELIVERED MONDAY WARNING THAT HE WOULDN'T BE ABLE TO SPARE THE MIDDLE CLASS RECALLS ONE OBSERVER HE FREQUENTLY ASKED HIS WIFE'S OPINION OF PASSAGES HE WAS COMPOSING MRS CLINTON'S CONSISTENT ADVICE WAS FOR THE PRESIDENT TO BE BLUNTER IN EXPLAINING HIS POSITION THROUGHOUT THE PROCESS MR CLINTON HAS APPEARED TO BE A MIRROR IMAGE OF HIS PREDECESSOR GEORGE BUSH THE CLINTON APPROACH TO THE ECONOMIC PLAN PERSONALLY LEADING LONG INFORMAL DISCUSSIONS DELVING INTO SMALL DETAILS LEAVING HIS PERSONAL STAMP ON DECISIONS PRECISELY PARALLELS THE WAY MR BUSH HANDLED FOREIGNPOLICY INITIATIVES AND WHILE MR BUSH TENDED TO STAY ABOVE THE DETAILED FORMULATION OF ECONOMIC POLICY THAT HAS BEEN MR CLINTON'S APPROACH TO FOREIGN POLICY SO FAR MR CLINTON'S FOREIGNPOLICY ADVISERS SAY THEY ARE CONSCIOUSLY TRYING TO MINIMIZE THEIR DEMANDS ON THE PRESIDENT'S TIME AS HE FOCUSES ON THE DOMESTIC ECONOMY SO WHILE THEY INSIST THAT MR CLINTON HAS BEEN HEAVILY INVOLVED IN FORMING A POLICY ON THE WAR IN BOSNIA THEY SAY DECISIONS HAVE BEEN MADE USING MORE INFORMAL CHANNELS RATHER THAN PULL MR CLINTON INTO LENGTHY FORMAL MEETINGS AIDES TRY TO TACKLE MUCH OF THEIR BUSINESS IN THE DAILY HALFHOUR MEETING THAT THE PRESIDENT HOLDS WITH NATIONAL SECURITY ADVISER TONY LAKE AND HIS DEPUTY SAMUEL BERGER AMONG OTHERS HE ALSO HAS PERIODIC INFORMAL CHATS WITH THOSE TWO DURING THE DAY MUCH FOREIGNPOLICY BUSINESS IS DONE BY MEMO AND AIDES SAY THAT MR CLINTON'S REACTION TO INCREASINGLY DETAILED MEMOS HELPED SHAPE THE MORE ASSERTIVE ADMINISTRATION POLICY TOWARD SETTLING THE BOSNIAN CONFLICT SIMILARLY WHEN SECRETARY OF STATE WARREN CHRISTOPHER WANTED TO GET MR CLINTON'S APPROVAL FOR A PLAN TO SOLVE THE IMPASSE OVER PALESTINIANS DEPORTED BY ISRAEL BUT TRAPPED IN LEGAL LIMBO IN SOUTHERN LEBANON THE ISSUE WASN'T HASHED OUT AT A FORMAL WHITE HOUSE MEETING INSTEAD FOREIGNPOLICY AIDES REVIEWED THE PLAN WITH THE PRESIDENT DURING AN INFORMAL WEEKEND GATHERING OF THE CABINET AT THE CAMP DAVID PRESIDENTIAL RETREAT AN OCCASION DESIGNED MOSTLY AS A GETACQUAINTED SOCIAL MEETING IT'S NOT CLEAR WHETHER MR CLINTON'S DETAILED ATTENTION TO SMALLBORE ECONOMIC ISSUES WILL CONTINUE BUT FOR NOW WHITE HOUSE AIDES DEFEND IT AS PROOF OF THE PRESIDENT'S CAMPAIGN PROMISE THAT HE WOULD BE HIS OWN PRINCIPAL ECONOMIC ADVISER WHAT COULD BE A BETTER USE OF THE PRESIDENT'S TIME THAN WORKING ON HIS ECONOMICGROWTH PROGRAM FOR THE NEXT FOUR YEARS ASKS MR SPERLING 9302190046 930219 ECONOMY CONSUMER PRICES IN JANUARY ROSE A SHARP 05 INDUSTRIAL OUTPUT CLIMBED FOR 4TH STRAIGHT MONTH TRADE DEFICIT NARROWS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER PRICES IN JANUARY SHOWED THEIR BIGGEST JUMP IN TWO YEARS AFTER REMAINING LOW THROUGH MUCH OF THE RECOVERY WHILE THE ECONOMY WAS SHOWING A WORRISOMELY GRADUAL IMPROVEMENT CONSUMER PRICES ROSE 05 LAST MONTH THE LABOR DEPARTMENT SAID BEHIND THE INCREASE WERE HIGHER PRICES FOR BEEF MOTOR FUEL TOBACCO HOSPITAL SERVICES AND SCHOOL FEES ACCORDING TO THE LABOR DEPARTMENT DESPITE THE SHARP UPTURN IN CONSUMER COSTS BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH IN NEW YORK SAID I STILL THINK THE INFLATION RATE IS COMING DOWN MR STEINBERG CALLED THE JANUARY INCREASE FLUKY AND ATTRIBUTED IT IN PART TO THE EXTREMELY LOW INFLATION RATE IN DECEMBER WHEN CONSUMER PRICES ROSE 01 THE DEPARTMENT SAID GROSS WEEKLY EARNINGS OF US WORKERS ROSE 01 LAST MONTH AFTER ADJUSTMENT FOR INFLATION MEANWHILE THE FEDERAL RESERVE REPORTED THAT INDUSTRIAL PRODUCTION ROSE 04 IN JANUARY ITS FOURTH STRAIGHT MONTHLY INCREASE THE FED SAID INDUSTRY OPERATED AT 795 OF ITS CAPACITY LAST MONTH UP FROM 793 IN NOVEMBER AND THE HIGHEST LEVEL SINCE OCTOBER 1991 BESIDES GROWING PRODUCTION THERE WERE OTHER SIGNS OF AN IMPROVING ECONOMY THE TRADE GAP NARROWED IN DECEMBER TO 695 BILLION FROM 735 BILLION IN NOVEMBER ACCORDING TO THE COMMERCE DEPARTMENT IMPORTS AND EXPORTS BOTH ROSE TO RECORDS BUT EXPORTS ROSE FASTER EXPORTS TOTALED 3973 BILLION FOR THE MONTH AND IMPORTS WERE 4668 BILLION NEW CLAIMS FOR UNEMPLOYMENT BENEFITS DECLINED FOR THE THIRD WEEK IN A ROW THE LABOR DEPARTMENT SAID DROPPING 19000 TO 321000 THE FOURWEEK MONTHLY AVERAGE OF NEW CLAIMS USUALLY REGARDED AS A BETTER GAUGE OF THE JOB MARKET DROPPED TO 344000 FROM 354000 THE PREVIOUS WEEK THE BOOST IN IMPORTS REFLECTS INCREASES IN CAPITAL GOODS INDUSTRIAL SUPPLIES AND CARS BECAUSE OF THE CLOSING DECEMBER TRADE GAP FIRMER RETAIL SALES AND AN INCREASE IN INVENTORIES SAID SAMUEL KAHAN CHIEF ECONOMIST FOR FUJI SECURITIES INC IN CHICAGO THE FOURTHQUARTER GROSS DOMESTIC PRODUCT MIGHT BE REVISED UPWARD THE COMMERCE DEPARTMENT ORIGINALLY REPORTED THE INCREASE AS A 38 ANNUAL RATE THE COMMERCE DEPARTMENT SAID THE TRADE DEFICIT FOR ALL 1992 WIDENED TO 8434 BILLION FROM 654 BILLION IN 1991 ALLEN SINAI CHIEF ECONOMIST OF BOSTON CO SAID THE LARGE YEAREND TRADE GAP DID NOT COME UNEXPECTEDLY AS THE US ECONOMY RECOVERS AND OTHER COUNTRIES STAGGER NAMELY JAPAN AND WESTERN EUROPE IT'S NOT SURPRISING TO SEE THE TRADE DEFICIT WORSEN SAID MR SINAI WE CAN EXPECT THE SAME IN 1993 MONTHLY FIGURES IN ALL THE REPORTS ARE ADJUSTED FOR SEASONAL CHANGES HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR JANUARY JANUARY CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM JANUARY 1992 WERE HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN JANUARY THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR JANUARY STOOD AT 1110 OF THE 1987 AVERAGE 9302190045 930219 INTERNATIONAL BRITAIN'S KINGFISHER AGREES TO ACQUIRE FINANCIERE DARTY SA SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH STORES GROUP KINGFISHER PLC AGREED TO BUY FINANCIERE DARTY SA THE 953 OWNER OF DARTY & FILS SA FRANCE'S LEADING ELECTRICALGOODS RETAILER SOME SORT OF AGREEMENT BETWEEN THE TWO GROUPS HAD BEEN EXPECTED BOTH COMPANIES ACKNOWLEDGED EARLIER THIS MONTH THAT THEY WERE IN NEGOTIATIONS THE TRANSACTION VALUES DARTY'S EQUITY AT 560 MILLION 809 MILLION KINGFISHER ALSO WILL TAKE ON 480 MILLION IN DEBT GIVING THE TRANSACTION A VALUE OF 104 BILLION KINGFISHER WILL ISSUE DARTY'S OWNERS 68 MILLION KINGFISHER SHARES FOR 64 OF THEIR HOLDING AND PAY 207 MILLION IN CASH FOR THE REMAINDER KINGFISHER WILL MAKE A SIMILAR CASH OFFER FOR THE 47 OF DARTY & FILS NOT OWNED BY FINANCIERE DARTY TO PAY KINGFISHER LAUNCHED A RIGHTS ISSUE OF NEW SHARES TO RAISE A NET 313 MILLION THE COMPANY OFFERED SHAREHOLDERS ONE NEW SHARE AT 450 PENCE FOR EVERY SEVEN ALREADY HELD THE PRICE REPRESENTS A 19 DISCOUNT TO KINGFISHER'S CLOSING PRICE ON THE LONDON STOCK EXCHANGE YESTERDAY OF 557 PENCE A SHARE THE PURCHASE OF DARTY WILL GIVE KINGFISHER A LARGE PRESENCE IN FRANCE KINGFISHER IS ALREADY INVOLVED IN THE HOMEIMPROVEMENT SECTOR THROUGH ITS B&Q CHAIN IN BRITAIN MARTIN REAVLEY GENERAL MANAGER OF BUSINESS DEVELOPMENT FOR KINGFISHER CONFIRMED THAT THE COMPANY ALSO HAS BEEN IN INFORMAL DISCUSSIONS WITH FRANCE'S CARREFOUR SA ABOUT CARREFOUR'S CASTORAMA HOMEIMPROVEMENT STORE CHAIN BUT HE INDICATED THAT ANY POSSIBLE AGREEMENT TO BUY CASTORAMA WOULD BE LONG IN THE MAKING SEPARATELY KINGFISHER ESTIMATED THAT ITS PRETAX PROFIT FELL 78 TO 210 MILLION IN THE YEAR ENDED JAN 30 FROM 2277 MILLION THE PREVIOUS YEAR THE DECLINE WAS LARGELY DUE TO A 26 MILLION WRITEDOWN IN THE VALUE OF NONRETAIL PROPERTY OWNED BY KINGFISHER'S REAL ESTATE DIVISION CHARTWELL LAND 9302190044 930219 BUSINESS BRIEF BOMBAY CO FURNISHINGS CHAIN WILL TAKE A CHARGE OF 79 MILLION BOMBAY CO FORT WORTH TEXAS SAID IT WILL TAKE AN AFTERTAX CHARGE OF 79 MILLION OR ABOUT 51 CENTS A SHARE IN THE THIRD FISCAL QUARTER TO COVER THE EXPENSE OF CONVERTING ITS BOMBAY STORES TO A BIGGER FORMAT THE HOMEFURNISHINGS CHAIN SAID THE CHARGE WILL RESULT IN A LOSS FOR THE QUARTER ALTHOUGH IT SAID THE YEAR WILL REMAIN PROFITABLE FOR THE THIRD QUARTER ENDED MARCH 29 1992 BOMBAY HAD NET INCOME OF 988000 OR 10 CENTS A SHARE ON SALES OF 409 MILLION BOMBAY SAID IT TOOK THE ACTION AFTER THE BOARD OF DIRECTORS APPROVED A FIVEYEAR PLAN TO CONVERT SUBSTANTIALLY ALL EXISTING BOMBAY STORES TO A LARGESTORE FORMAT AND TO BEGIN THE ROLLOUT OF ITS CHAIN OF ALEX & IVY FRENCH COUNTRYSTYLE FURNITURE STORES THE CHARGE RELATES TO THE NONCASH COST OF WRITING OFF THE REMAINING BOOK VALUE OF LEASEHOLD IMPROVEMENTS AT THE TIME BOMBAY STORES ARE CONVERTED 9302190043 930219 PEPPERAND SALT WHEN MY YOUTHFUL VIRILITY IS SLIGHTED I'M PREMATURELY FAT AND NEARSIGHTED I LOOK FORWARD TO JUNK MAIL 9302190042 930219 BUSINESS BRIEF USMX INC TENNECO GOLD MINE PURCHASE TO LIFT 1993 OUTPUT BY 50 USMX INC SAID IT HAS AGREED TO ACQUIRE THE GOLDSTRIKE GOLD MINE NEAR ST GEORGE UTAH FROM TENNECO MINERALSUTAH A UNIT OF TENNECO INC THE PURCHASE WILL BE EFFECTIVE RETROACTIVE TO NOV 1 1992 BOOSTING 1992 GOLD PRODUCTION FOR THE DENVER COMPANY AND ADDING ABOUT 50 TO USMX'S 1993 PRODUCTION USMX AND TENNECO WOULDN'T RELEASE DETAILS OF THE TRANSACTION THE MINE PRODUCED ABOUT 38000 OUNCES IN 1992 AND HAS 70000 OUNCES TO 90000 OUNCES OF RECOVERABLE RESERVES AND THE POTENTIAL FOR FURTHER DISCOVERIES USMX'S 1992 PRODUCTION INCLUDING TWO MONTHS' OF GOLDSTRIKE OUTPUT WAS ABOUT 48000 OUNCES SAID JAMES KNOX PRESIDENT OF THE SMALL MINING COMPANY THE COMPANY'S 1993 PRODUCTION WILL REACH 70000 OUNCES MR KNOX ALSO SAID THE COMPANY WILL REPORT POSITIVE EARNINGS FOR 1992 EVEN THOUGH THE GOLD PRICE SANK DURING THE YEAR PUSHING MANY GOLDCOMPANY EARNINGS INTO THE RED 9302190041 930219 FINANCING BUSINESS GLAMIS GOLD LTD GLAMIS GOLD LTD VANCOUVER BRITISH COLUMBIA SAID IT AGREED TO SELL TWO MILLION SPECIAL WARRANTS AT 5625 CANADIAN DOLLARS US445 EACH IN A PRIVATE PLACEMENT TO RAISE C1125 MILLION THE GOLD MINING CONCERN SAID PROCEEDS WILL BE USED TO DEVELOP THE BALTIC MINE PROJECT IN CALIFORNIA AND FOR WORKING CAPITAL EACH SPECIAL WARRANT WILL BE EXCHANGEABLE INTO ONE COMMON SHARE OF GLAMIS AT NO ADDITIONAL COST THE COMPANY CURRENTLY HAS 174 MILLION SHARES OUTSTANDING 9302190040 930219 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS NET LOSS IN FOURTH QUARTER NARROWED TO 825 MILLION MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH REPORTED THAT ITS FOURTHQUARTER NET LOSS NARROWED AS SUBSCRIBERS AND CASH FLOW INCREASED MCCAW WHICH OPERATES UNDER A LARGE DEBT ACQUIRED TO EXPAND ITS CELLULARPHONE OPERATIONS POSTED A NET LOSS OF 825 MILLION OR 45 CENTS A SHARE COMPARED WITH A NET LOSS OF 1253 MILLION OR 71 CENTS A SHARE IN THE YEAREARLIER QUARTER FOURTHQUARTER REVENUE ROSE 30 TO 4942 MILLION FROM 3792 MILLION A YEAR EARLIER MCCAW CLASS A STOCK CLOSED AT 3225 DOWN 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9302190039 930219 HERSHEY FOODS CALLS DEBENTURES HERSHEY PA HERSHEY FOODS CORP SAID IT CALLED TWO DEBENTURE ISSUES FOR REDEMPTION MARCH 15 THE COMPANY IS CALLING AT PAR PLUS ACCRUED INTEREST ITS 1 MILLION OF OUTSTANDING 725 DEBENTURES DUE 1997 IT ALSO IS CALLING AT PAR PLUS INTEREST 75 MILLION OF 95 DEBENTURES DUE 2009 AND 345 MILLION OF THE DEBENTURES AT 104015 PLUS INTEREST 9302190038 930219 DETROIT EDISON TO REDEEM SHARES DETROIT DETROIT EDISON CO SAID IT WILL REDEEM ITS 960 SERIES PREFERRED STOCK 972 SERIES PREFERRED STOCK AND 228 SERIES PREFERENCE STOCK THE REDEMPTIONS HAVE BEEN SET FOR MARCH 26 THE UTILITY SAID THE REDEMPTION PRICE OF THE 960 SERIES WILL BE 104 A SHARE THE REDEMPTION PRICE OF THE 972 SERIES WILL BE 10290 A SHARE AND OF THE 228 SERIES 2525 A SHARE 9302190037 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CASH CRUNCH STUNTED GROWTH A SUCCESSFUL TRACK RECORD OFTEN ISN'T MUCH HELP IN OPENING A BANK'S COFFERS BY MICHAEL SELZ ARTHUR B SCOTT FIGURED THAT HE HAD PROVED HIMSELF HE FOUNDED KASS MANAGEMENT SERVICES INC IN OAKLAND CALIF IN 1975 SEVENTEEN YEARS LATER HE SAYS THE RESTAURANTMANAGEMENT CATERING AND JANITORIALSERVICES CONCERN IS PROFITABLE AND HAS 45 MILLION IN ANNUAL SALES BUT NOW MR SCOTT SAYS HE FEELS AS IF HE HAS TO PROVE HIMSELF ALL OVER AGAIN LAST YEAR THE BLACK ENTREPRENEUR'S BANK TERMINATED KASS'S CREDIT LINE AFTER THE COMPANY GRADUATED FROM A FEDERAL PROGRAM THAT AWARDS CONTRACTS TO MINORITYOWNED FIRMS THE DEPARTURE COST KASS HALF OF ITS BUSINESS MR SCOTT TRIED TO ARRANGE NEW FINANCING WITH ANOTHER BANK BUT HE WAS REJECTED IT DIDN'T MATTER THAT HE WANTED TO BORROW ONLY 250000 A FRACTION OF HIS OLD 18 MILLION CREDIT LINE IT'S LIKE STARTING OVER AT DAY ONE MR SCOTT SAYS OF HIS RECENT FUNDRAISING EFFORT DESPITE HIS ACHIEVEMENTS HE SAYS I FEEL LIKE NOTHING HAS CHANGED THAT SAME SENSE HAUNTS MANY SUCCESSFUL BLACK ENTREPRENEURS THEY STRUGGLE FOR YEARS STARTING FIRMS FROM SCRATCH AND SLOWLY TURNING THEM INTO RESPECTABLE MONEYMAKERS BUT SUCCESS OFTEN DOESN'T MAKE IT ANY EASIER TO RAISE MONEY FINANCING HURDLES THEY SAY NEVER GO AWAY FOR THE BLACK ENTREPRENEUR THAT ISN'T TO SAY THAT EVERY BLACK ENTREPRENEUR WHO FAILS TO RAISE FINANCING IS A VICTIM OF DISCRIMINATION IN THE CURRENT CREDIT CRUNCH IN WHICH BANKS HAVE TIGHTENED LENDING PROCEDURES IN THE WAKE OF THE SAVINGSANDLOAN DEBACLE BUSINESS OWNERS OF ALL RACES HAVE HAD AN EXTRAORDINARILY DIFFICULT TIME GETTING LOANS SOME PROPOSALS TO BORROW MONEY MOREOVER MAY SIMPLY NOT MERIT APPROVAL AND WHILE RACIST ATTITUDES PERMEATE ALL SECTORS OF AMERICAN SOCIETY BANKS AND OTHER LENDERS SAY THEY ARE MAKING EVERY EFFORT TO ELIMINATE RACE AS A FACTOR IN THEIR CREDIT DECISIONS NONETHELESS SOME SPECIALISTS CONTEND THAT THE FINANCING DECK REMAINS HEAVILY STACKED AGAINST AFRICANAMERICANS BLACK ENTREPRENEURS WITH A GOOD TRACK RECORD STILL HAVE A TOUGHER TIME THAN WHITE ENTREPRENEURS GETTING MONEY TO EXPAND SAYS THOMAS HUNT JR PRESIDENT OF CAPITAL DIMENSIONS INC IN MINNEAPOLIS WHICH RUNS A FUND THAT INVESTS IN MINORITYOWNED FIRMS TO COPE BLACK BUSINESS OWNERS HAVE TO WORK HARDER TO RAISE LESS MONEY MR HUNT SAYS WHERE A WHITE PERSON HAS TO TALK TO THREE BANKS TO GET SOME INTEREST A BLACK PERSON HAS TO TALK TO SIX OR NINE IN THE MOST RECENT COMPREHENSIVE DATA ON THE SUBJECT THE US COMMERCE DEPARTMENT'S MINORITY BUSINESS DEVELOPMENT AGENCY FOUND IN A 1987 STUDY THAT BLACKOWNED FIRMS WERE A THIRD LESS LIKELY THAN WHITEOWNED FIRMS TO BE APPROVED FOR A BUSINESS LOAN GAVIN CHEN A SENIOR PROGRAM MANAGER IN THE AGENCY'S CAPITALACCESS DEVELOPMENT PROGRAM SAYS IT IS PROBABLE THAT CREDITACCESS DISCRIMINATION AGAINST MINORITY FIRMS HAS GOTTEN WORSE IN THE PAST COUPLE OF YEARS BECAUSE OF THE SOCALLED CREDIT CRUNCH WHILE THE SHORTAGE OF FINANCING CUTS ACROSS RACIAL BARRIERS BLACKOWNED FIRMS ARE ESPECIALLY VULNERABLE BECAUSE THEY TEND TO BE SMALLER AND ARE MORE LIKELY TO BE UNDERCAPITALIZED IN THE FIRST PLACE SPECIALISTS SAY A LACK OF FUNDS CERTAINLY STUNTED THE GROWTH OF BLACKOWNED NERO DRYWALL CO A CONSTRUCTION SUBCONTRACTOR OVER THE 18 YEARS THAT HE HAS RUN AND OWNED THE OAKLAND CALIF CONCERN PETER NERO SAYS HE HAS TRIED THREE TIMES TO BORROW MONEY FROM BANKS EACH TIME HE WAS REJECTED FOR HAVING INSUFFICIENT COLLATERAL TO SECURE THE DEBT HE SAYS ALTHOUGH THE COMPANY HAD GROWN TO NINE EMPLOYEES AND WAS READY TO EXPAND EVEN MORE CONSEQUENTLY I'VE NEVER BEEN ABLE TO GO AFTER BIG JOBS MR NERO SAYS NOTING THAT HIS FIRM IS STRUGGLING I'VE SURVIVED ON FRUIT THAT FALLS FROM THE TREE AT AD FLEMING GROUP INC PRESIDENT ALICIA FLEMING HAS SIMILARLY PUT OFF EXPANDING BECAUSE OF THE COOL RECEPTION SHE HAS RECEIVED FROM LENDERS MS FLEMING HAS BUILT ANNUAL SALES OF HER NEW YORK PERSONNELPLACEMENT FIRM TO 600000 WITH INTERNAL FUNDING ONLY NOW THOUGH SHE SAYS SHE NEEDS TO TURN TO OUTSIDE SOURCES TO EXPAND BEYOND CLERICAL HELP TO OTHER PERSONNEL AREAS SUCH AS COMPUTER TRAINING BUT MS FLEMING SAYS SHE IS POSTPONING APPLYING FOR FINANCING FOR AT LEAST ANOTHER YEAR I'VE PUT OUT FEELERS AND IT DIDN'T FEEL GOOD SHE SAYS THERE JUST HASN'T BEEN ANY MONEY OUT THERE GETTING BETTER AS BAD AS THINGS ARE TODAY SOME BLACK ENTREPRENEURS THINK THEY USED TO BE WORSE AS PRESIDENT AND OWNER OF FOCUS COMMUNICATIONS GROUP A DALLAS PUBLICRELATIONS MARKETING AND ADVERTISING FIRM KEN CARTER DECIDED TO DIVERSIFY INTO PUBLISHING IN 1985 THAT YEAR HE PROPOSED PURCHASING DALLAS WEEKLY A BLACKORIENTED PUBLICATION WITH A CIRCULATION OF 50000 EVEN THOUGH MR CARTER HAD INCREASED FOCUS COMMUNICATIONS' SALES TO NEARLY 1 MILLION SINCE HE HAD BEGUN THE FIRM FIVE YEARS EARLIER HIS BANK WOULD LEND HIM ONLY 50000 IN WORKING CAPITAL SECURED WITH THE PAPER'S LAND AND EQUIPMENT HE HAD TO PERSUADE THE SELLER TO TAKE A NOTE FOR ALL OF THE PAPER'S SIXFIGURE PURCHASE PRICE HAD MINORITYLENDING PRACTICES BEEN RECEIVING THE SCRUTINY FROM THE PRESS AND STATE AND FEDERAL REGULATORS THAT THEY ARE TODAY MR CARTER SAYS I THINK THE BANK WOULD HAVE GIVEN US MORE MONEY ULTIMATELY MR CARTER'S FEAR THAT HE HAD INADEQUATELY FUNDED THE DEAL MATERIALIZED TWO YEARS LATER AFTER UNEXPECTEDLY DIVERTING MORE THAN 100000 FROM FOCUS COMMUNICATIONS TO DALLAS WEEKLY TO COVER THE SHORTFALL HE HAD TO SELL THE PAPER IT WAS DRAINING US HE SAYS MR CARTER HAS SINCE RESTORED FOCUS COMMUNICATIONS' FINANCIAL STRENGTH AND PLANS AGAIN TO SEEK OUTSIDE FINANCING TO ACCELERATE THE FIRM'S GROWTH BUT HE ISN'T COUNTING THE MONEY UNTIL THE CHECK IS IN HIS HAND I'VE DONE THINGS TO STRENGTHEN THIS BUSINESS THAT HAVE ALLOWED IT TO SURVIVE A SEVERE ECONOMIC DOWNTURN AND WE'RE IN A GOOD POSITION TO GO TO THE NEXT PHASE MR CARTER SAYS BUT HE ADDS I MAY STILL GET DENIED AND THEN YOU WONDER WHAT IT WAS ALL FOR HIGH PRICE BANKS' STINGINESS OFTEN DRIVES BLACK ENTREPRENEURS TO SEEK EXPANSION HELP FROM VENTURE CAPITALISTS BUT THAT HELP CAN COME AT A HEAVY PRICE WHEN THE BLACK OWNERS OF RADIO ONE INC UNDERTOOK A MAJOR EXPANSION THEY HAD TO GIVE UP A HUGE CHUNK OF EQUITY IN THE WASHINGTON DC CONCERN FOR LACK OF BANK FINANCING SAYS ITS PRESIDENT ALFRED LIGGINS COFOUNDED IN 1980 BY MR LIGGINS'S MOTHER RADIO ONE PREVIOUSLY OPERATED ONE AM STATION IN 1987 IT SET OUT TO BUY A LOCAL FM STATION AT THE TIME BANKS WERE BEATING DOWN DOORS TO LEND MONEY TO FINANCE MEDIA ACQUISITIONS OFTEN PROFERRING 100 OF THE PROPERTY'S APPRAISED VALUE MR LIGGINS SAYS BUT WHEN RADIO ONE SOUGHT FINANCING FOR THE PURCHASE OF A STATION APPRAISED AT 11 MILLION MR LIGGINS SAYS THE BANK OFFERED TO LEND THE FIRM ONLY 55 MILLION TO COME UP WITH THE REST OF THE CAPITAL HE HAD TO TURN TO A GROUP OF VENTURE FIRMS THAT SPECIALIZED IN FINANCING MINORITY CONCERNS THE COMPANIES AGREED TO INVEST ABOUT 5 MILLION BUT IN RETURN FOR THEIR EQUITY AND DEBT FINANCING THEY DEMANDED A 75 STAKE IN RADIO ONE MR LIGGINS SAYS AS DISAPPOINTING AS THE BANK'S OFFER WAS RADIO ONE'S OWNERS WERE STILL PLEASED TO GET IT MR LIGGINS SAYS THERE WERE 20 OTHER BANKS THAT WOULDN'T EVEN TALK TO US NONETHELESS AS A MINORITY ENTREPRENEUR YOU'RE OFTEN NOT VIEWED AS A GOOD CREDIT RISK HE ADDS AND WHEN COMPETING WITH NONMINORITY FIRMS IN SUCH AN ENVIRONMENT YOU'VE GOT TO RUN TWICE AS FAST JUST TO CATCH UP MARVIN SWAIN JR FOR ONE THINKS HE FINALLY HAS AFTER LOSING HIS JOB AT A BUILDINGMATERIALS SUPPLIER MR SWAIN IN 1986 FOUNDED MY MAMMA'S SWEET POTATO PIE CO WITH JUST 50AND HIS MOTHER'S RECIPEIN COLUMBUS OHIO HE BEGAN BY PEDDLING PIES FROM THE TRUNK OF HIS CAR WHEN LOCAL STORES STARTED CARRYING HIS PRODUCT HE BUILT HIS CREDIT ONE STEP AT A TIME FIRST MR SWAIN BORROWED 1000 SECURING THE LOAN WITH A 1000 CERTIFICATE OF DEPOSIT THAT HE PURCHASED THE SAME DAY THEN AS DEMAND CONTINUED TO GROW HE WENT TO THE BANK AGAIN AND BORROWED FIRST 8000 AND THEN 7000 OVER A SIXMONTH PERIOD TODAY THE COMPANY IN A YEAR SELLS 150000 OF PIES MAINLY IN FOUR MAJOR SUPERMARKETS IN OHIO AND MICHIGAN AND THE LAST TIME MR SWAIN WENT TO HIS BANKER TO BORROW WORKING CAPITAL TO INCREASE PRODUCTION DURING THE HOLIDAY SEASON TO 1800 PIES A WEEK HIS LENDER APPROVED A 15000 LOAN IN A COUPLE OF HOURS MR SELZ IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9302190036 930219 FULTON FINANCIAL TO ACQUIRE BANK LANCASTER PA FULTON FINANCIAL CORP SAID SHAREHOLDERS APPROVED THE ACQUISITION OF DENVER NATIONAL BANK OF DENVER PA IN A STOCKSWAP VALUED AT ABOUT 58 MILLION UNDER TERMS EACH OF DENVER NATIONAL'S 400000 COMMON SHARES WILL BE EXCHANGED FOR 65 FULTON FINANCIAL COMMON SHARES FULTON FINANCIAL SAID IT PLANS TO MERGE DENVER NATIONAL BANK INTO FULTON BANK ITS FLAGSHIP BANK WHEN COMPLETED THE MERGER WILL GIVE FULTON BANK 14 BILLION IN TOTAL ASSETS THE COMPANY SAID 9302190035 930219 OTC FOCUS NASDAQ INDEX EKES OUT A 046 GAIN IN HECTIC SESSION OF WILD MARKET SWINGS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET HAD A ROLLERCOASTER RIDE SURGING IN THE MORNING SINKING IN THE AFTERNOON AND FINALLY RALLYING TO FINISH WITH A MODEST GAIN AFTER A WILD DAY THE NASDAQ COMPOSITE INDEX MANAGED TO CLIMB 302 OR 046 TO 66245 GAINERS TOPPED DECLINERS 1430 TO 1215 ON TOTAL VOLUME OF 2986 MILLION SHARES UP FROM WEDNESDAY'S 2755 MILLION SHARES DURING THE FIRST HOUR OF TRADING THE INDEX LEAPED ALMOST 10 POINTS BUT FELL BACK IN THE AFTERNOON THE MARKET WAS DOWN AS MUCH AS TWO POINTS BEFORE RALLYING IN THE FINAL HOUR OF TRADING TRADING WAS ABSOLUTELY CHAOTIC AT POINTS SAID PETER DAPUZZO HEAD OF OTC AND INTERNATIONAL TRADING AT THE BROKERAGE FIRM CANTOR FITZGERALD & CO THE OTC MARKET SHOWED TREMENDOUS RESILIENCY IN THE END AND THE BUYERS STAYED IN THE MARKET TRADERS SAID THE MARKET SWINGS CAME AS INVESTORS SORTED THROUGH THE IMPLICATIONS OF PRESIDENT CLINTON'S ECONOMIC PROGRAM PRESENTED TO CONGRESS WEDNESDAY NIGHT THE NASDAQ INDEX HAD TUMBLED MORE THAN 30 POINTS IN THE PRIOR TWO SESSIONS ON WORRIES ABOUT MR CLINTON'S PLANS WHICH INCLUDE INCREASES IN INDIVIDUAL AND CORPORATE INCOME TAXES THAT SOME FEAR WILL STIFLE THE FRAGILE ECONOMIC RECOVERY THE MARKET HAD ALREADY FACTORED IN THE NEGATIVES SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO THE MARKET GOT TIRED OF DECLINING HE ADDED THE NASDAQ MARKET WELCOMED THE FIRST RUSSIANRELATED ISSUE TO TRADE ON A US STOCK MARKET SINCE THE IMPOSITION OF COMMUNIST RULE IN THE FORMER SOVIET UNION ABOUT 75 YEARS AGO YESTERDAY PETERSBURG LONG DISTANCE INC PRICED ABOUT THREE MILLION COMMON SHARES AT 8 1/2 THE STOCK CLOSED AT 9 1/2 PETERSBURG LONG DISTANCE FORMERLY KNOWN AS NWE CAPITAL CORP IS A DIVERSIFIED CANADIAN HOLDING COMPANY THAT OPERATES IN THE RUSSIAN FEDERATION AND THE UNITED KINGDOM THROUGH ITS SUBSIDIARIES AND INVESTMENTS THE COMPANY OWNS 50 OF THE OUTSTANDING SHARES OF PETERSTAR CO A RUSSIAN COMPANY FORMED TO PROVIDE TELECOMMUNICATIONS SERVICES TO THE CITY OF ST PETERSBURG IN THE RUSSIAN FEDERATION ARGOSY GAMING CO REMAINED UNCHANGED AT 19 1/4 FROM ITS OFFERING PRICE OF 19 YESTERDAY THE ALTON ILL COMPANY PRICED SIX MILLION SHARES THROUGH LEAD UNDERWRITER DONALDSON LUFKIN & JENRETTE THE SIZE OF THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED FIVE MILLION SHARES ARGOSY OWNS AND OPERATES A GAMBLING OPERATION ABOARD A RIVERBOAT ON THE MISSISSIPPI IN ILLINOIS FRANK BIRNIE PARTNER IN CHARGE OF INSTITUTIONAL SALES AT ROBERTSON STEPHENS SAID INVESTORS ARE STILL RELUCTANT TO MAKE BIG COMMITMENTS THEY ARE WILLING TO BUY INDIVIDUAL TECHNOLOGY OR HEALTHCARE STOCKS BUT THEY WON'T BET ON ENTIRE INDUSTRIES MICROSOFT ROSE 1 3/8 TO 81 5/8 INTEL JUMPED 1 1/2 TO 110 APPLE COMPUTER ADDED 1 1/8 TO 55 AND CISCO SYSTEMS SURGED 3 3/4 TO 85 3/4 US HEALTHCARE ADDED 1 TO 45 3/4 AND AMGEN ROSE 7/8 TO 49 1/8 PACIFICARE HEALTH B THOUGH SKIDDED 2 1/2 TO 27 1/4 PATRICK RYAN PRESIDENT OF RYAN HARTLEY & LEE SAID INVESTORS REMAIN UNSURE ABOUT THE MARKET'S NEARTERM COURSE AND HOW THE CLINTON ECONOMY PACKAGE WILL AFFECT VARIOUS INDUSTRIES THE MARKET IS TRYING TO DETERMINE WHO WILL BENEFIT AND WHO WON'T HE ADDED MEANWHILE MR RYAN SAID THE UNSTABLE CONDITIONS PROBABLY WILL PERSIST AND COULD BE EXAGGERATED BY MONTHLY OPTIONS EXPIRATIONS SCHEDULED FOR TOMORROW KOMAG JUMPED 3 1/2 TO 21 3/4 AFTER POSTING A STRONGERTHANEXPECTED EARNINGS REPORT LATE YESTERDAY THE MILPITAS CALIF MAKER OF COMPUTER DISKDRIVE PARTS HAD FOURTHQUARTER NET INCOME OF 20 CENTS A SHARE UP FROM FOUR CENTS A YEAR AGO AND ABOVE THE 15 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM EMPI INC SURGED 3 TO 36 THE ST PAUL MINN MEDICALDEVICE MANUFACTURER SAID ITS FOURTHQUARTER EARNINGS JUMPED TO 34 CENTS A SHARE FROM 20 CENTS A YEAR AGO SALES SPURTED TO 118 MILLION FROM 65 MILLION VIDEOTELECOM LOST 1 1/4 TO 7 1/2 AFTER IT RECORDED FOURTHQUARTER EARNINGS OF ONE CENT A SHARE DOWN FROM TWO CENTS LAST YEAR AND PREDICTED A FIRSTQUARTER LOSS OF SEVEN CENTS TO 12 CENTS A SHARE THE AUSTIN TEXAS MAKER OF ELECTRONICCONFERENCING SYSTEMS BLAMED REDUCED ORDERS AND INCREASED EXPENSES MILLTOPE GROUP DECLINED 5/16 TO 4 7/8 ITS FOURTHQUARTER EARNINGS EASED TO 22 CENTS A SHARE FROM 26 CENTS A YEAR EARLIER THE MELVILLE NY COMPUTERSYSTEMS CONCERN'S SALES DROPPED TO 282 MILLION FROM 329 MILLION FOR THE QUARTER PULITZER PUBLISHING ADDED 1/2 TO 37 THE NEWSPAPER AND BROADCASTING COMPANY BASED IN ST LOUIS ENTERED A LETTER OF INTENT TO BUY TWO TELEVISION STATIONS FROM H&C COMMUNICATIONS INC OF HOUSTON FOR 165 MILLION THE STATIONS ARE IN FLORIDA AND IOWA DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9302190034 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT TURNED DOWN A WSJ SURVEY FINDS A WIDESPREAD PERCEPTION OF LENDING BIAS BY EUGENE CARLSON SCOTT BAKER IS GRATEFUL TO THE FINANCIAL ANGELS WHO HELPED HIM GET HIS COMPANY OFF THE GROUND FAMILY AND FRIENDS CAME THOUGH WITH LOANS WHEN MR BAKER AND HIS PARTNER EXPLAINED THEIR IDEA FOR SKYLINE COMMUNICATIONS CORP A MAIL AND PACKAGEDELIVERY FIRM BASED IN BOSTON AIR CARRIERS GRUDGINGLY GRANTED TRADE CREDIT LETTING BILLS RIDE WHILE THE NEW COMPANY BUILT CASH RESERVES AND TWO YEARS AGO IN THE FIRM'S FIFTH YEAR THE MASSACHUSETTS MINORITY ENTERPRISE INVESTMENT CORP A CONSORTIUM THAT FUNNELS MONEY TO MINORITYOWNED FIRMS APPROVED A 40000 TERM LOAN AND A 10000 CREDIT LINE CONSPICUOUSLY ABSENT FROM THIS LIST OF BENEFACTORS HOWEVER IS THE NAME OF A SINGLE COMMERCIAL BANK ARMED WITH A BUSINESS PLAN FOR AN OPERATING COMPANY WITH A PROMISING FUTURE MR BAKER SAYS HE VISITED BASICALLY EVERY BANK IN AND AROUND BOSTON THE REACTION WAS UNIFORM WE WERE YOUNG AND PERSONS OF COLOR MR BAKER SAYS THEY LOOKED AT YOU SKEPTICALLY RIGHT OFF THE BAT THEN THEY'D PUT YOU THROUGH RIGORS TO THE NTH DEGREE THEY ALL SAID NO NO NO A PAINFUL EXPERIENCE SURE SURPRISING HARDLY A PUBLICOPINION POLL OF SEVERAL HUNDRED BLACK BUSINESS OWNERS COMMISSIONED BY THE WALL STREET JOURNAL FOUND THAT BEING SNUBBED BY BANKS IS PRETTY MUCH THE NORM AN OVERWHELMING 92 OF BLACK OWNERS SAID THEY HAD BEEN TURNED DOWN BY BANKS WHILE TRYING TO FINANCE THEIR FIRMS AND WHILE BANKS ARE TRADITIONALLY STINGY WHEN IT COMES TO LENDING MONEY TO ENTREPRENEURS THE BLACK OWNERS INDICATED IN NO UNCERTAIN TERMS THAT THEIR FINANCING PROBLEMS WERE INEVITABLY LINKED TO THEIR MINORITY STATUS IN TRUTH A SIZABLE SHARE OF BLACK ENTREPRENEURS EVENTUALLY PREVAIL IN THEIR QUEST FOR FINANCING BUT MOST SAY THE PROCESS IS AN OBSTACLE COURSE FILLED WITH SNARES THAT NONMINORITY OWNERS SIMPLY NEVER ENCOUNTER MINORITYOWNED COMPANIES FIND THAT THE REQUIREMENTS ON DEBTTOEQUITY ARE GOING TO BE HIGHER AND THAT THEIR LOANS ARE GOING TO BE SCRUTINIZED MORE SAYS JAMES WINTERS PRESIDENT OF UNITED ENERGY INC A THREEYEAROLD PETROLEUMPRODUCTSDISTRIBUTION FIRM IN PORTLAND ORE THE JOURNAL'S SURVEY WAS CONDUCTED BY THE ROPER ORGANIZATION INC A NEW YORK PUBLICOPINION RESEARCH FIRM THE RESULTS ARE BASED ON INTERVIEWS WITH 500 BLACK BUSINESS OWNERS ACROSS THE US CONDUCTED IN THE SIX WEEKS ENDED JANUARY 11 ROPER SAYS THE ANSWERS TO THE VARIOUS SURVEY QUESTIONS REFLECT THE VIEWS OF ALL BLACK BUSINESS OWNERS WITH A MARGIN OF ERROR OF PLUS OR MINUS 5 A JOURNAL REPORTER DISCUSSED THE FINDINGS AT GREATER LENGTH WITH SEVERAL OF THE OWNERS QUERIED BY ROPER HERE ARE SOME OF THE SURVEY'S MAJOR FINDINGS ALTHOUGH 85 OF BLACK OWNERS SAID THEY WERE AT LEAST MODERATELY KNOWLEDGEABLE ABOUT RAISING FUNDS THREEFOURTHS OF THE OWNERS SAID THEY BELIEVED IT WAS MUCH MORE DIFFICULT TO RAISE CAPITAL THAN IT WAS FOR WHITE BUSINESS OWNERS ABOUT TWOTHIRDS OF THOSE POLLED SAID MAJOR CHANGES ARE NEEDED IN OPPORTUNITIES FOR BLACKS TO START THEIR OWN FIRMS INCLUDING GOVERNMENT AND PRIVATE PROGRAMS AIMED AT GETTING MINORITYOWNED COMPANIES OFF THE GROUND TWOTHIRDS OF THE SURVEY SAMPLE ALSO SAID THE PUBLIC'S ATTITUDE ABOUT BLACKS AS PEOPLE WHO CAN SUCCEED IN BUSINESS NEEDS MAJOR ATTENTION AND CORPORATIONS SHOULD DO FAR MORE IN THE FIELD OF MINORITY PURCHASING THE RESPONDENTS SAID SLIGHTLY MORE THAN HALF OF THE OWNERS SAID THEY HAD BEEN SUCCESSFUL IN RAISING CAPITAL OVER THE PAST FEW YEARS BUT ABOUT TWOTHIRDS FELT THEY WERE CHARGED HIGHER INTEREST RATES THAN THEIR WHITE COUNTERPARTS LACK OF COLLATERAL A PAUCITY OF BLACK LENDERS AND LOAN OFFICERS AND A PUBLIC PERCEPTION THAT BLACKS LACK BUSINESS ACUMEN ARE AMONG THE MAJOR DRAGS ON CAPITAL FLOW TO BLACKOWNED FIRMS ACCORDING TO THE GREAT MAJORITY OF THOSE SURVEYED THREEFOURTHS OF THE OWNERS THINK THAT MANY BLACKOWNED FIRMS HAVE SIMPLY GIVEN UP SHOPPING FOR CAPITAL BECAUSE THEY HAVE BEEN REJECTED SO OFTEN PRESIDENT CLINTON RECEIVED STRONG BUT HARDLY OVERWHELMING SUPPORT FROM THE OWNERS SLIGHTLY MORE THAN HALF SAID THEY EXPECTED THEIR FIRMS TO DO BETTER IN THE NEXT TWO YEARS WITH MR CLINTON IN THE WHITE HOUSE AND THOUGH THE DEMOCRATIC PARTY MAY HAVE THE REPUTATION OF BEING SENSITIVE TO MINORITY DEMANDS NEARLY HALF THE OWNERS SURVEYED SAID THAT AS FAR AS HELPING BLACKOWNED FIRMS IT DOESN'T MATTER WHICH PARTY CONTROLS CONGRESS THOUGH FINANCING HEADACHES DOMINATED ANSWERS TO THE ROPER POLL THERE WERE EXCEPTIONS DAN ANDERSON OWNER OF DIVERSIFIED SUPPLY CO CHATTANOOGA TENN A SUPPLIER OF ELECTRICAL EQUIPMENT TO UTILITIES AND INDUSTRIAL USERS SAYS HE HAS NEVER HAD A PROBLEM RAISING CAPITAL FOR HIS THREEYEAROLD FIRM THE KEY REASON I WAS A STOCKBROKER WITH MERRILL LYNCH FOR EIGHT YEARS MR ANDERSON SAYS I WAS ABLE TO WALK INTO THE BANK AND TALK THEIR JARGON OWNING A SUCCESSFUL BUSINESS WITH POSITIVE CASH FLOW ALSO HELPED HE CONCEDES HIS FIRM HAD 45 MILLION IN SALES LAST YEAR AND HIS LOCAL BANK HAS JUST RAISED HIS CREDIT LINE FROM 75000 TO PRETTY CLOSE TO 200000 MUCH MORE COMMON HOWEVER IS THE EXPERIENCE OF GEORGE FOUNTAIN COOWNER OF DISTRICT SCIENTIFIC & MEDICAL SUPPLY INC GAITHERSBURG MD THE COMPANY IS PROFITABLE NOW AS IT HAS BEEN FOR SEVEN OF ITS NINE YEARS WITH CURRENT ANNUAL SALES OF ROUGHLY 11 MILLION BUT BANKS ROUTINELY REJECT MR FOUNTAIN'S REQUESTS FOR INVENTORY FINANCING BANKS WON'T EVEN ACCEPT SIGNED GOVERNMENT CONTRACTS AS COLLATERAL HE COMPLAINS INDEED A LIST OF BLUERIBBON CUSTOMERS IS NO GUARANTEE THAT A BANK WILL APPROVE A LOAN REQUEST WE SELL TO FORTUNE 500 COMPANIES SAYS MR WINTERS THE PETROLEUM DEALER THE CHANCES OF THEM FOLDING ARE MINIMAL HE SAYS THAT HE GOT SHUT OUT AT PORTLAND'S FOUR MAJOR BANKS IN HIS INITIAL SEARCH FOR STARTUP FUNDS WHILE THOSE SAME BANKS WERE FINANCING MOM AND POP COMPANIES WITH NONMINORITY OWNERS MR WINTERS PROJECTS SALES OF 2 MILLION FOR THE YEAR ENDING JUNE 30 FOR ALL THE COMPLAINTS BANKS ARE WHERE 73 OF BLACKOWNED FIRMS ULTIMATELY OBTAIN CAPITAL ACCORDING TO THE ROPER POLL PRIVATE INVESTORS WERE THE FUNDING SOURCE OF 14 OF THE OWNERS AND THE SMALL BUSINESS ADMINISTRATION 9 VENTURE CAPITALISTS FINANCED JUST 1 OF THE FIRMS SURVEYED THAT'S PARTLY BECAUSE FEW BLACKOWNED FIRMS PROMISE THE SORT OF TECHNOLOGICAL BREAKTHROUGHS OR RUNAWAY EARNINGS GROWTH THAT VENTURE CAPITAL FIRMS SEEK THEY WANT 35 OR 45 RETURN ON INVESTMENT THEY WOULDN'T GET THAT WITH US SAYS MR WINTERS IN BRIDGEWATER MASS CLEO PARIS OWNER OF PARIS INSTRUMENT SERVICE CO SAYS HE SPURNED ALL FINANCING WHEN HE STARTED EIGHT YEARS AGO BECAUSE HE WASN'T SURE HOW A MINORITYOWNED FIRM IN HIS SPECIALTY INSTRUMENT CALIBRATION WOULD BE ACCEPTED INSTEAD HE DEDICATED THE FIRM'S RECEIVABLES TO BUYING EQUIPMENT AND BARTERED FOR OTHER GEAR BUSINESS IS GOOD RIGHT NOW AND WE'RE STARTING TO TAKE ON BIGGER ACCOUNTS HE SAYS SURPRISINGLY 70 OF THE ROPER RESPONDENTS SAID THEY HADN'T TRIED TO RAISE MONEY FROM BLACK INVESTORS EVEN THOUGH NEARLY AS MANY SAID THEY WERE SURE THERE WAS UNTAPPED WEALTH IN THE AFRICANAMERICAN COMMUNITY SAYS MR BAKER DO I WRITE BILL COSBY AND HE LOANS ME 50000 WHAT ARE YOU TALKING ABOUT MR FOUNTAIN IN MARYLAND SAYS HE HAS WRITTEN FUNDRAISING LETTERS TO SEVERAL PROFESSIONAL BLACK ATHLETES WITHOUT A RESPONSE I HAVE A REAL PROBLEM KNOWING THAT THERE ARE SO MANY AFRICANAMERICAN ENTERTAINERS AND ATHLETES MAKING TREMENDOUS DOLLARS AND I REALLY DON'T SEE THEM PUTTING THE MONEY BACK IN THE COMMUNITY HE SAYS WHILE OWNERS FOCUSED ON THE HARD KNOCKS THAT COME WITH BEING A BLACK ENTREPRENEUR SOME ACKNOWLEDGED THERE WAS A BRIGHTER SIDE ASKED HOW THE RACE FACTOR HAD AFFECTED THEIR COMPANY 26 SAID IT HAD HELPED 40 SAID IT HAD HURT AND 30 SAID IT MADE NO DIFFERENCE MR ANDERSON IN CHATTANOOGA HAS SEEN IT BOTH WAYS THE TENNESSEE VALLEY AUTHORITY WHICH ACTIVELY SOUGHT OUT MINORITYOWNED VENDORS WAS HIS LARGEST CUSTOMER BEFORE GOING THROUGH A MANAGEMENT SHAKEUP NOW MUCH OF THE TVA'S WORK IS SUBCONTRACTED TO A HANDFUL OF LARGE CONTRACTORS WHO MR ANDERSON SAYS DON'T HAVE VERY GOOD PROGRAMS TO DEAL WITH MINORITIES THAT TOOK 3 MILLION TO 4 MILLION AWAY FROM US FOR A SMALL BUSINESS THAT'S QUITE A BIG HIT THE EXISTENCE OF A GOVERNMENT OR PRIVATE CUSTOMER COMMITTED TO DOING BUSINESS WITH MINORITYOWNED FIRMS CAN BE A GODSEND BOTH MR PARIS AND MR BAKER SINGLED OUT THE MINORITYPURCHASING POLICIES OF RAYTHEON CO THE LEXINGTON MASS ELECTRONICS MANUFACTURER AS UNUSUALLY ENLIGHTENED BUT RAYTHEON APPEARS TO BE THE EXCEPTION NINETYFIVE PERCENT OF THE OWNERS TOLD ROPER THAT CHANGES ARE NEEDED TO HELP BLACKS BREAK THROUGH THE PURCHASING LOGJAM PURCHASING IS ONE OF THE FEW FUNCTIONS IN CORPORATIONS WHERE PEOPLE DON'T LEAVE AND MOVE UP SAYS MR ANDERSON THIS CREATES A GOODOLDBOYANDGIRL NETWORK THAT'S HARD TO BREAK MR ANDERSON SAYS HE HAS 120 CORPORATE CUSTOMERS IN AN AREA STRETCHING FROM OHIO TO TEXAS AND ONLY TWO HAVE BLACK PURCHASING MANAGERS YEAH I THINK THE CARDS ARE STACKED HE SAYS THE ROPER RESPONSES PUT A LARGE DENT IN THE PROPOSITION THAT BLACKS HAVE OVERWHELMING FAITH IN GOVERNMENT PROGRAMS IN GENERAL AND THE DEMOCRATIC PARTY IN PARTICULAR ONLY HALF THE OWNERS SAID THEY WERE DEMOCRATS ANOTHER 11 SAID REPUBLICAN WITH THE BALANCE CHOOSING INDEPENDENT OR SOMETHING ELSE MR FOUNTAIN FOR ONE DOESN'T LOOK FOR MUCH HELP FROM THE CLINTON ADMINISTRATION I LISTENED VERY CLOSELY TO EVERYTHING HE'S SAID BUT I NEVER HEARD ANY MENTION OF ANYTHING CONCERNING MINORITY BUSINESS MR FOUNTAIN SAYS INDEED 44 OF THE OWNERS SAID THAT IT DOESN'T MATTER TO BLACKOWNED BUSINESSES WHICH PARTY CONTROLS THE WHITE HOUSE AND 60 SAID FINANCIAL HELP FROM FEDERAL GOVERNMENT PROGRAMS HAD BEEN ONLY A LITTLE USEFUL OR NO HELP AT ALL A MERE 8 OF ROPER RESPONDENTS SAID THEY FELT OPPORTUNITIES FOR BLACKS TO START THEIR OWN FIRMS HAD IMPROVED A LOT OVER THE PREVIOUS YEAR IT'S A STATISTIC THAT CLEARLY BOTHERS SOME OF THE OWNERS I WOULD LOVE TO TEACH INSTRUMENT CALIBRATION TO MINORITIES WHO SHOW AN APTITUDE FOR MATH SAYS MR PARIS I DON'T KNOW IF IN MY LIFETIME I'LL HAVE THE FINANCING TO DO THAT MR BAKER SAYS HE IS INVOLVED IN THE NEW ENGLAND MINORITY PURCHASING COUNCIL PROBLEMS ARE BEING DISCUSSED THERE'S A HIGHER LEVEL OF CONSCIOUSNESS HE SAYS BUT IN TERMS OF PRACTICE YOU HAVE TO WONDER WHAT LEVEL OF LISTENING IS GOING ON UP THERE WHAT'S SURPRISING IN THE END GIVEN THE PROBLEMS THAT BLACK ENTREPRENEURS FACE DAILY IS THE EXTENT TO WHICH THEY EMBRACE FREE ENTERPRISE AN OVERWHELMING 95 OF THE BLACK OWNERS SURVEYED SAID THEY WOULD GO INTO THE SAME BUSINESS AGAIN THOUGH HALF SAID THEY WOULD MAKE SOME MAJOR CHANGES IN THE WAY I DID IT AND 96 SAID THEY WOULD ENCOURAGE THEIR DAUGHTERS OR SONS TO BECOME ENTREPRENEURS THE PERSONAL REWARDS ARE MUCH GREATER IN ACHIEVING SOMETHING THAT IS YOUR OWN SAYS MR FOUNTAIN AS OPPOSED TO LABORING AND SWEATING FOR SOMEONE ELSE MR CARLSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU WHEN BLACK ENTREPRENEURS WERE ASKED WHETHER RAISING CAPITAL IS A PROBLEM FOR BLACKOWNED BUSINESSES HERE'S WHAT THEY SAID THE ROPER ORGANIZATION ASKED BLACK ENTREPRENEURS A VARIETY OF QUESTIONS PRIMARILY ABOUT FINANCING WHAT FOLLOWS ARE SOME OF THE SPECIFIC RESPONSES THERE MAY BE MANY REASONS WHY RAISING CAPITAL IS A PROBLEM FOR BLACKOWNED BUSINESSES FOR EACH OF THE FOLLOWING INDICATE WHETHER YOU THINK IT IS A MAJOR REASON A MINOR REASON OR NOT A REASON THIS QUESTION WAS ASKED ONLY OF THOSE WHO SAID THAT RAISING CAPITAL WAS AT LEAST A MODERATELY SERIOUS PROBLEM ARE BLACKOWNED BUSINESSES SEEKING CAPITAL CHARGED THE SAME RATES HIGHER RATES OR LOWER RATES THAN WHITEOWNED BUSINESSES BECAUSE OF UNFAVORABLE EXPERIENCES IN TRYING TO RAISE CAPITAL DO YOU THINK THAT MANY BLACKOWNED BUSINESSES HAVE BECOME SO DISCOURAGED THAT THEY DON'T EVEN TRY ANY MORE HOW USEFUL DO YOU FEEL FEDERAL GOVERNMENT PROGRAMS HAVE BEEN IN PROVIDING FINANCIAL ASSISTANCE TO BLACKOWNED BUSINESSES IF A SON OR DAUGHTER CAME TO YOU AND SAID THEY WANTED TO GO INTO THEIR OWN BUSINESS WOULD ENCOURAGE OR DISCOURAGE THEM IN GENERAL HAS YOUR BUSINESS BEEN HELPED OR HURT BY BEING MINORITYOWNED DO YOU BELIEVE THAT BLACK BUSINESS OWNERS HAVE FULLY EXPLORED OPPORTUNITIES IN BLACK NEIGHBORHOODS OR HAVE THEY TOO OFTEN LEFT THOSE OPPORTUNITIES TO OTHERS ARE BLACKOWNED BUSINESSES BETTER OFF WHEN REPUBLICANS CONTROL THE WHITE HOUSE WHEN DEMOCRATS CONTROL IT OR DOESN'T IT MATTER HOW KNOWLEDGEABLE DO YOU REGARD YOURSELF WITH RESPECT TO THE TECHNIQUES FOR RAISING CAPITAL HAVE YOU SOUGHT NEW CAPITAL OVER THE PAST FEW YEARS IF YES WERE YOU SUCCESSFUL OR UNSUCCESSFUL IF YOU WERE SUCCESSFUL WHERE DID YOU OBTAIN THE CAPITAL IF YOU WERE UNSUCCESSFUL WHAT SOURCE OR SOURCES TURNED YOU DOWN WHETHER OR NOT YOU HAVE RECENTLY SOUGHT NEW CAPITAL WHAT WOULD BE YOUR PREFERRED SOURCE OR SOURCES HOW WOULD YOUR BUSINESS CHANGE IF YOU HAD MORE CAPITAL DO YOU BELIEVE THERE IS WEALTH WITHIN THE BLACK COMMUNITY THAT HAS NOT BEEN ADEQUATELY EXPLORED AS A SOURCE OF CAPITAL OR ISN'T THIS A PRACTICAL ALTERNATIVE 9302190033 930219 BUSINESS BRIEF COASTAL CORP FLORIDA POWER TO TRANSPORT ITS NATURAL GAS BY PIPELINE COASTAL CORP HOUSTON SAID IT SIGNED A 25YEAR CONTRACT WITH FLORIDA POWER CORP FOR THE TRANSPORTATION OF NATURAL GAS THROUGH A PROPOSED 600 MILE PIPELINE FLORIDA POWER A UNIT OF ST PETERSBURG FLA UTILITY FLORIDA PROGRESS CORP AGREED TO TRANSPORT 120 MILLION CUBIC FEET OF NATURAL GAS A DAY BEGINNING IN 1995 AND INCREASE THE VOLUME TO 210 MILLION CUBIC FEET BY 1999 SAID COASTAL THE COMPANY ALSO WILL BE A ONETHIRD EQUITY PARTNER IN THE PIPELINE THE COST OF WHICH IS ESTIMATED TO BE MORE THAN 600 MILLION SAID COASTAL WITH FLORIDA POWER'S COMMITMENT IN PLACE COASTAL SAID IT WILL PROCEED WITH FILINGS TO THE FEDERAL ENERGY REGULATORY COMMISSION AND THE FLORIDA PUBLIC SERVICE COMMISSION FOR THE PROJECT THE DIVERSIFIED ENERGY COMPANY ALSO WILL SEEK OTHER EQUITY PARTNERS THE INTERSTATE PORTION OF THE PIPELINE WOULD SERVE MISSISSIPPI ALABAMA AND FLORIDA PANHANDLE CUSTOMERS THE LARGER SHARE OF THE PROJECT IS AN INTRASTATE PIPELINE FOR FLORIDA CONSTRUCTION IS SET TO BEGIN NEXT YEAR PENDING GOVERNMENT APPROVALS 9302190032 930219 SINGAPORE TELECOM POSTS RECORD PROFIT FOR ITS LATEST YEAR A WALL STREET JOURNAL NEWS ROUNDUP SINGAPORE SINGAPORE TELECOM REPORTED RECORD PROFIT FOR FISCAL 1992 BUT REVEALED FEW FRESH DETAILS ABOUT ITS EAGERLY AWAITED INITIAL PUBLIC OFFERING THE STATEOWNED TELEPHONE MONOPOLY DID DISCLOSE THAT THE GOVERNMENT GRABBED 37 BILLION SINGAPORE DOLLARS US225 BILLION OF THE S43 BILLION OF CASH ON THE COMPANY'S BALANCE SHEET IN PREPARATION FOR PRIVATIZATION CUTTING SINGAPORE TELECOM'S ASSETS ABOUT IN HALF THAT PILE OF CASH GENERATED INTEREST INCOME ACCOUNTING FOR ABOUT 20 OF SINGAPORE TELECOM'S PROFITS IN RECENT YEARS WONG HUNG KHIM PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID ABOUT S600 MILLION IN CASH WAS CARRIED OVER ONTO THE BOOKS OF THE NEW COMPANY SINGAPORE TELECOMMUNICATIONS PTE LTD THE GOVERNMENT CREATED THE NEW TELECOM APRIL 1 WHEN IT SPLIT THE OLD TELECOM INTO A REGULATORY AGENCY AND AN OPERATING COMPANY AT A NEWS CONFERENCE TO RELEASE TELECOM'S ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 1992 THE COMPANY'S LAST FISCAL YEAR UNDER THE OLD STRUCTURE MR WONG SAID THAT ABOUT S35 BILLION OF THE OLD TELECOM'S ASSETS OF S769 BILLION WERE TRANSFERRED TO THE NEW TELECOM THE REDUCTION IN CASH ACCOUNTS FOR MOST OF THE REDUCTION IN TOTAL ASSETS FOR FISCAL 1992 SINGAPORE TELECOM REPORTED A RECORD NET SURPLUS OF S101 BILLION COMPARED WITH S8921 MILLION A YEAR EARLIER REVENUE ROSE 12 TO S248 BILLION FROM S222 BILLION A YEAR EARLIER MR WONG SAID THE COMPANY POSTED DOUBLEDIGIT INCREASES IN REVENUE AND EARNINGS IN THE FIRST HALF OF THE CURRENT FISCAL YEAR HE DIDN'T ELABORATE REVENUE FROM INTERNATIONAL OR LONGDISTANCE TELEPHONE SERVICES ROSE 9 TO S123 BILLION IN FISCAL 1992 REVENUE FROM BASIC DOMESTIC TELEPHONE SERVICES ROSE 5 TO S348 MILLION REVENUE FROM MOBILE COMMUNICATIONS SERVICES SOARED 38 TO S283 MILLION IN THE LATEST YEAR ANALYSTS AND INVESTMENT BANKERS EXPECT THE GOVERNMENT TO SELL AS MUCH AS 25 OF TELECOM IN THE IPO THEY EXPECT ABOUT 15 OF THE COMPANY TO BE SOLD IN AN INTERNATIONAL TENDER WITH AN ADDITIONAL 10 STAKE RESERVED FOR SINGAPOREANS MR WONG SAID THE GOVERNMENT WILL LAUNCH ITS LONGDELAYED INITIAL PUBLIC OFFERING OF TELECOM SHARES IN THE SECOND HALF OF THIS YEAR IT'S PREMATURE TO ANSWER QUESTIONS ON THE SIZE AND STRUCTURE OF THE OFFERING MR WONG SAID 9302190031 930219 KUHLMAN CORP COLTEC END PACT LEXINGTON KY KUHLMAN CORP AND COLTEC INDUSTRIES INC SAID THEY AGREED TO TERMINATE THEIR AGREEMENT FOR KUHLMAN TO BUY COLTEC'S CENTRAL MOLONEY TRANSFER DIVISION THE TWO COMPANIES SAID ADDITIONAL TIME NEEDED TO COMPLETE PREREQUISITE CONDITIONS MADE IT IMPRACTICAL TO CONTINUE WITH THE ARRANGEMENT KUHLMAN MAKES DISTRIBUTION POWER AND INSTRUMENT TRANSFORMERS COLTEC MAKES PRODUCTS FOR THE AEROSPACE AND AUTOMOTIVE INDUSTRIES 9302190030 930219 LAW JUDGE DISMISSES MOST OF A CIVIL LAWSUIT ON TREASURY SCANDAL NEW YORK A FEDERAL JUDGE DISMISSED MUCH OF A CIVIL LAWSUIT FILED BY THREE CROWN LIMITED PARTNERSHIP IN CONNECTION WITH THE SALOMON BROTHERS INC TREASURY SCANDAL THE RULING BY US DISTRICT JUDGE ROBERT L CARTER IS BELIEVED TO BE THE FIRST TO WEIGH THE MERITS OF CIVIL SUITS BROUGHT BY INVESTORS CAUGHT UP IN THE ALLEGED MANIPULATION OF THE TREASURY MARKET BY THE SALOMON INC UNIT AND SEVERAL OTHER INVESTMENT FIRMS SALOMON AND THE OTHER FIRMS FACE AT LEAST HALF A DOZEN PRIVATE CIVIL SUITS AND ONE CLASS ACTION BROUGHT ON BEHALF OF TREASURY MARKET INVESTORS THREE CROWN A MONEY MANAGER BASED IN SECAUCUS NJ LAST YEAR SUED SALOMON CAXTON CORP STEINHARDT PARTNERS AND SOROS FUND MANAGEMENT ALLEGING THE FIRMS CONSPIRED TO CONTROL THE APRIL AND MAY 1989 AUCTIONS IN TWOYEAR US TREASURY BILLS THREE CROWN ALLEGED THAT THE GOAL OF THE CONSPIRACY WAS TO SQUEEZE THE MARKETS FOR THE NOTES CAUSING THE HEDGE FUND TO HAVE LOSSES IN ITS TRADING IN THE SECURITIES BUT JUDGE CARTER AGREED WITH ARGUMENTS PUT FORWARD BY LAWYERS FOR CAXTON STEINHARDT AND SOROS THAT THE SUIT DIDN'T PROVIDE ENOUGH DETAILS ON THE ALLEGED CONSPIRACY THROUGHOUT THE COMPLAINT DEFENDANTS ARE CLUMPED TOGETHER IN VAGUE ALLEGATIONS REGARDING SOME OR ALL OF THE DEFENDANTS' SUCH WIDESCALE CLUMPING IS UNACCEPTABLE JUDGE CARTER WROTE SALOMON DIDN'T JOIN IN THE MOTION TO DISMISS THE CASE BUT ASKED THAT IT BE TRANSFERRED TO US DISTRICT JUDGE ROBERT P PATTERSON JR NEW YORK WHO IS OVERSEEING THE OTHER CIVIL SUITS JUDGE CARTER GRANTED SALOMON'S REQUEST AND TRANSFERRED THE REMAINDER OF THE CASE TO JUDGE PATTERSON JUDGE CARTER ALSO SAID THREE CROWN COULD REFILE WITH JUDGE PATTERSON SOME ALLEGATIONS SUCH AS FRAUD CLAIMS AGAINST CAXTON STEINHARDT AND SOROS BUT JUDGE CARTER SAID THREE CROWN CAN'T REFILE ITS CLAIM THE DEFENDANTS BROKE THE COMMODITIES EXCHANGE ACT KENNETH SCHACHTER AN ATTORNEY REPRESENTING THREE CROWN SAID HE COULDN'T COMMENT ON THE RULING AS HE HADN'T YET SEEN IT 9302190029 930219 MARKETING BRIEF INFINITY BROADCASTING CORP PACT IS REACHED TO MANAGE UNISTAR BUSINESS OPERATIONS RADIOSTATION OWNER INFINITY BROADCASTING CORP SAID IT REACHED AN AGREEMENT WITH UNISTAR COMMUNICATIONS GROUP INC TO MANAGE UNISTAR'S BUSINESS AND OPERATIONS UNDER THE AGREEMENT INFINITY SAID IT ALSO WILL HAVE THE RIGHT TO ACQUIRE A SIGNIFICANT EQUITY INTEREST IN UNISTAR WHICH OWNS BOTH UNISTAR RADIO NETWORKS AND MARKET RESEARCH GROUP INC A RESEARCH CONCERN SERVING THE RADIO INDUSTRY INFINITY OWNS AND OPERATES 21 RADIO STATIONS MEL KARMAZIN PRESIDENT AND CHIEF EXECUTIVE OF INFINITY ALSO WILL SERVE AS CHIEF EXECUTIVE OF UNISTAR 9302190028 930219 DIVERSIFIED INDUSTRIES SEES A PROBABILITY' OF CHAPTER 11 FILING ST LOUIS DIVERSIFIED INDUSTRIES INC SAID THERE IS A PROBABILITY IT MIGHT BE FORCED TO PURSUE A REORGANIZATION UNDER THE PROTECTION OF FEDERAL BANKRUPTCY LAWS IF IT CANNOT RESTRUCTURE ITS OPERATIONS THE METALS CONCERN SAID IT WANTS TO RESTRUCTURE AND REBUILD ITSELF AROUND ITS UNITED REFINING & SMELTING UNIT WHICH IT SAID IS OPERATING PROFITABLY ON A STANDALONE BASIS DIVERSIFIED REPORTED YESTERDAY A NET LOSS FOR THE YEAR ENDED OCT 31 OF 22 MILLION OR 458 A SHARE ON SALES OF 153 MILLION THE FISCAL YEAR NET LOSS INCLUDES AN 181 MILLION LOSS FROM DISCONTINUED OPERATIONS DIVERSIFIED WHICH HAS BEEN STUNG BY THE DROP IN THE PRICES OF METALS SUCH AS GOLD SAID EARLIER THIS MONTH THAT IT WILL LIQUIDATE ITS DIVERSIFIED METALS CORP UNIT BECAUSE CHASE MANHATTAN BANK TERMINATED A LINE OF CREDIT THE COMPANY WAS UNABLE TO FIND A REPLACEMENT LENDER OR BUYER CHASE IS A UNIT OF CHASE MANHATTAN CORP DIVERSIFIED SAID IT ALSO PLANS TO SELL OR LIQUIDATE ITS PLUME & ATWOOD BRASS MILL DIVISION LOCATED IN THOMASTON CONN EARLIER THIS WEEK THE NEW YORK STOCK EXCHANGE SUSPENDED TRADING IN DIVERSIFIED COMMON STOCK BECAUSE THE COMPANY FELL BELOW LISTING STANDARDS WHILE ACKNOWLEDGING LARGE BOOK LOSSES AND CASH FLOW PROBLEMS IN RECENT YEARS DIVERSIFIED SAID ITS UNITED REFINING & SMELTING OPERATION HAS SIGNIFICANT UNRECOGNIZED VALUE AND THAT ITS OPERATION AND MARKET PRESENT A SUBSTANTIAL OPPORTUNITY AROUND WHICH TO RESTRUCTURE AND REBUILD DIVERSIFIED THE COMPANY SAID RESTRUCTURING WILL REQUIRE THE COOPERATION OF ITS CREDITORS AS WELL AS ADDITIONAL INVESTMENT IN ITS OPERATIONS 9302190027 930219 BUSINESS BRIEF SAHARA RESORTS TWO WALL STREET COMPANIES ARE RETAINED TO GIVE ADVICE SAHARA RESORTS SAID IT ENGAGED BEAR STEARNS & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP TO PROVIDE FINANCIAL ADVICE ON A PREVIOUSLY REPORTED POSSIBLE BUSINESS COMBINATION WITH SAHARA CASINO PARTNERS LP AND POSSIBLE DEBT REFINANCING SAHARA CASINO PARTNERS OPERATES AND ACQUIRES HOTEL PROPERTIES AND GAMING OPERATIONS OF SAHARA RESORTS A LAS VEGAS HOTEL AND CASINO OPERATOR IN ITS ANNUAL REPORT SAHARA RESORTS SAID IT OWES 169 MILLION UNDER A BANK CREDIT FACILITY THAT EXPIRES IN MARCH THE HOTEL AND CASINO OPERATOR SAID IT IS NEGOTIATING TO OBTAIN AN EXTENSION AND IS EXPLORING ALTERNATIVE FINANCING SOURCES A NONPAYMENT DEFAULT UNDER THE CREDIT FACILITY WOULD CONSTITUTE A DEFAULT UNDER SUBSTANTIALLY ALL OF THE COMPANY'S LONGTERM DEBT AGREEMENTS THE REPORT SAID SAHARA RESORTS HAS BEEN SQUEEZED BY TIGHTENING COMPETITION ON THE STRIP IN LAS VEGAS TOGETHER WITH ITS AFFILIATES SAHARA RESORTS HOLDS ABOUT 63 OF THE EQUITY OUTSTANDING IN SAHARA CASINO PARTNERS 9302190025 930219 DIVIDEND NEWS KEYCORP KEYCORP ALBANY NY A REGIONAL BANKING COMPANY INCREASED THE QUARTERLY DIVIDEND 19 TO 31 CENTS A SHARE FROM 26 CENTS PAYABLE APRIL 15 TO SHARES OF RECORD MARCH 31 9302190024 930219 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO EUGENE MILLER 67YEAROLD RETIRED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF USG CORP CHICAGO WAS NAMED TO THE BOARD OF THIS CREDIT CARD SERVICE ORGANIZATION INCREASING THE BOARD'S SIZE TO THREE 9302190023 930219 WHO'S NEWS ELCO INDUSTRIES INC ELCO INDUSTRIES INC ROCKFORD ILL JOHN C LUTZ PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF METAL AND PLASTIC FASTENERS AND PARTS MR LUTZ 54 YEARS OLD WILL SUCCEED JACK W PACKARD 66 WHEN HE RETIRES AS CHIEF EXECUTIVE OFFICER JUNE 25 MR PACKARD WILL CONTINUE AS CHAIRMAN 9302190022 930219 BUSINESS BRIEF CROWN CORK & SEAL CO UNIT PLANS TO ACQUIRE 44 OF A DUTCH BOTTLE MAKER CROWN CORK & SEAL CO SAID ITS CONSTAR INTERNATIONAL INC SUBSIDIARY SIGNED A LETTER OF INTENT TO ACQUIRE A 44 INTEREST IN NETHERLANDSBASED WELLSTAR HOLDING BV GIVING CROWN CORK CONTROL WELLSTAR IS A LEADING EUROPEAN MAKER OF POLYETHYLENE TEREPHTHALATE BOTTLES PHILADELPHIABASED CROWN CORK WHICH ALREADY OWNED A 44 HOLDING WILL PURCHASE THE INTEREST FROM WELLMAN INC SHREWSBURY NJ FOR ABOUT 33 MILLION WELLSTAR HAS PLANTS IN THE NETHERLANDS ENGLAND AND FRANCE AND HAS A 59 INTEREST IN A JOINTVENTURE OPERATION IN BUDAPEST HUNGARY THE PURCHASE IS EXPECTED TO BE COMPLETED NEXT MONTH CROWN CORK A 38 BILLION WORLDWIDE MAKER OF METAL AND PLASTIC CONTAINERS CROWNS CLOSURES AND PACKAGING MACHINERY SAID CONTROL OF WELLSTAR WILL HELP IT EXPAND PLASTIC PACKAGING OPERATIONS IN EUROPE WELLMAN SAID IT EXPECTS A ONETIME AFTERTAX GAIN OF BETWEEN 56 MILLION AND 95 MILLION ON THE TRANSACTION 9302190021 930219 AUTO OUTPUT IS SLATED TO RISE 86 IN WEEK DETROIT US AUTO MAKERS SAID THEY PLAN TO BUILD 816437 PASSENGER CARS THIS WEEK UP 86 FROM THE 751518 CARS BUILT IN THE YEAREARLIER PERIOD GENERAL MOTORS CORP SAID IT HAS SCHEDULED OVERTIME NEXT WEEK AT ITS SATURN ASSEMBLY PLANT IN SPRING HILL TENN AND AT ITS TRUCK PLANTS IN MORAINE OHIO PONTIAC MICH AND OSHAWA ONTARIO MEANWHILE FORD MOTOR CO HAS PLANNED DAILY AND SATURDAY OVERTIME FOR THIS WEEK AT ITS CAR AND TRUCK ASSEMBLY PLANTS IN WIXOM MICH ATLANTA CHICAGO KANSAS CITY MO LORAIN OHIO AND LOUISVILLE KY CHRYSLER CORP SAID IT PLANNED SATURDAY OVERTIME AT ITS ASSEMBLY PLANTS IN FENTON MO DETROIT AND BELVIDERE ILL 9302190020 930219 WHO'S NEWS COMPTRONIX CORP DISMISSES OFFICIALS AMID SEC INQUIRY BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL GUNTERSVILLE ALA COMPTRONIX CORP SAID IT DISMISSED TWO SENIOR EXECUTIVES WHO HAD BEEN SUSPENDED FOLLOWING DISCLOSURES LAST NOVEMBER OF IMPROPER ACCOUNTING PRACTICES THE COMPANY ALSO SAID IT HAS STARTED SERIOUS NEGOTIATIONS WITH PLAINTIFFS WHO SUED COMPTRONIX A MAKER OF ELECTRONIC PARTS IN THE WAKE OF THE ACCOUNTING DISCLOSURES COMPTRONIX SAID IT DISMISSED ALLEN SHIFFLETT THE COMPANY'S SUSPENDED PRESIDENT AND CHIEF OPERATING OFFICER AND PAUL MEDLIN THE SUSPENDED CONTROLLER AND TREASURER COMPTRONIX SAID ONLY THAT THE MEN HAD BEEN DISMISSED FOR CAUSE LAST NOVEMBER THE COMPANY SAID THAT MESSRS SHIFFLETT AND MEDLIN ALONG WITH WILLIAM HEBDING THEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD INFORMED THE COMPTRONIX BOARD THAT THEY HAD CAUSED THE COMPANY TO OVERSTATE PROFITS SINCE 1989 THROUGH IMPROPER ACCOUNTING THE STATEMENT PROMPTED THE COMPANY'S STOCK PRICE TO PLUMMET AND SPARKED TWO INVESTIGATIONS BY THE SECURITIES AND EXCHANGE COMMISSION OF INSIDER TRADING AS WELL AS A SPATE OF SHAREHOLDER SUITS THE SEC DECLINES TO COMMENT ON THE INVESTIGATIONS MR HEBDING WAS DISMISSED IN DECEMBER MR SHIFFLETT COULDN'T BE REACHED YESTERDAY FOR COMMENT MR MEDLIN REACHED IN GUNTERSVILLE ACKNOWLEDGED THE COMPANY'S ACTION BUT DECLINED TO COMMENT COMPTRONIX ALSO SAID IT IS CONTINUING NEGOTIATIONS WITH ITS LENDERS TO RESTRUCTURE THE COMPANY'S FINANCING BECAUSE SHAREHOLDER LITIGATION COULD THREATEN THE NEGOTIATIONS AND RESTRUCTURING COMPTRONIX SAID IT HAS INSTRUCTED ITS LEGAL COUNSEL TO CONDUCT SERIOUS SETTLEMENT NEGOTIATIONS WITH THE PLAINTIFFS INVOLVED THE COMPANY ADDED HOWEVER THAT NEITHER A RESTRUCTURING NOR A SETTLEMENT COULD BE ASSURED 9302190019 930219 ZIONS AGREES TO ACQUIRE WASATCH SALT LAKE CITY UTAH ZIONS BANCORP SAID IT AGREED TO ACQUIRE CLOSELY HELD WASATCH BANCORP OF OREM UTAH ZIONS SAID WASATCH SHAREHOLDERS WILL RECEIVE AN UNDETERMINED NUMBER OF ZIONS SHARES IN A POOLINGOFINTERESTS TRANSACTION WASATCH WILL MERGE WITH ZIONS'S MAIN OPERATING UNIT ZIONS FIRST NATIONAL BANK WHICH HAD ASSETS OF 326 BILLION AT THE END OF 1992 WASATCH'S BANK UNIT WASATCH BANK HAD 683 MILLION IN ASSETS AT THE END OF 1992 9302190018 930219 BOEING TO SLASH PAYROLL BY 28000 THROUGH 1994 BIGGERTHANEXPECTED CUTS OF 20 OF WORK FORCE TO COME MAINLY IN 1993 BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO SAID IT PLANS TO SLASH ITS PAYROLL BY 28000 JOBS THROUGH 1994 A 20 CUT THAT EXCEEDS WHAT HAD BEEN EXPECTED THE BULK OF THE REDUCTIONS WHICH REFLECT THE CONTINUING WORLDWIDE AIRLINE INDUSTRY SLUMP WILL COME DURING THE SUMMER AND FALL OF THIS YEAR THE WORLD'S BIGGEST AIRPLANE BUILDER PLANS TO ELIMINATE 23000 JOBS THEN SEATTLEBASED BOEING ESTIMATED THAT 15000 OF THE 1993 JOB CUTS WOULD BE IN WASHINGTON STATE WITH 6000 IN WICHITA KAN THE REST OF THE REDUCTIONS INCLUDING 1000 JOBS THAT WILL BE TRANSFERRED TO ANOTHER COMPANY THAT IS TAKING OVER A BOEING GOVERNMENT CONTRACT TO MANAGE PETROLEUM RESERVES WILL AFFECT VARIOUS SITES AROUND THE COUNTRY BOEING ALSO PLANS TO CUT 5000 MORE JOBS IN THE FIRST HALF OF 1994 OF WHICH ABOUT 4000 WILL BE IN WASHINGTON STATE AND 1000 IN WICHITA THE COMPANY CURRENTLY EMPLOYS 142000 AFTER HAVING TRIMMED ABOUT 10000 POSITIONS LAST YEAR THESE ACTIONS WERE PROMPTED BY THE HARD TIMES ALL OF THE AIRLINES IN THE WORLD ARE SUFFERING PARTICULARLY IN THE US SAID FRANK SHRONTZ BOEING'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LARRY MCKEAN BOEING'S VICE PRESIDENT OF PERSONNEL SAID THAT THE COMPANY EXPECTS ABOUT 6000 OF THE JOB CUTS TO COME THROUGH ATTRITION AND THAT THE CUTS WOULD BE EVENLY SPLIT BETWEEN HOURLY AND SALARIED WORKERS BOEING'S PREVIOUSLY ANNOUNCED MOVE TO LOWER PRODUCTION RATES ON ITS 737 757 767 AND JUMBO 747 JET MODELS WAS THE MAIN CATALYST BEHIND THE WORKFORCE PARING OF THE 28000 JOBS TO BE CUT ABOUT 66 WILL COME FROM BOEING'S COMMERCIAL JET GROUP 23 FROM ITS SHRINKING DEFENSE AND SPACE GROUP AND THE REST FROM OTHER SECTORS SUCH AS COMPUTER SERVICES DEVELOPMENT OF THE COMPANY'S NEW 777 WIDEBODY JET AND RELATED EMPLOYMENT WON'T BE AFFECTED MR SHRONTZ SAID IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BOEING GAINED 125 CENTS TO 33875 ASKED WHY BOEING DIDN'T ANTICIPATE NEEDED JOB REDUCTIONS SOONER MR SHRONTZ SAID WE SAW IT COMING BUT WE HAVE TO REACT TO AIRLINE DECISIONMAKING BOEING HOPES THE TROUBLED AIRLINE INDUSTRY WILL PICK UP IN THE NEXT TWO YEARS MR SHRONTZ SAID ALTHOUGH HE ADDED THAT THE SIGNS THIS YEAR ARE VERY TENTATIVE BUT A TWOYEAR TURNAROUND FORECAST COULD BE OVERLY ROSY UNLESS THE ECONOMIC HEALTH OF US AIRLINES IN PARTICULAR IMPROVES QUICKLY JERROLD LUNDQUIST AN AEROSPACE CONSULTANT AT MCKINSEY & CO PREDICTED THAT WHILE THE MARKET FOR WIDEBODIED AIRPLANES MAY RECOVER IN TWO YEARS ORDERS FOR SMALLER JETS WON'T PICK UP SOON THE AIRLINE INDUSTRY'S STRUCTURE IS TERRIBLE MR LUNDQUIST SAID MOST PROFITS ARE COMPETED AWAY IN PRICE WARS AND UNTIL THAT ECONOMIC SITUATION CHANGES AIRLINES WON'T BE ABLE TO MAKE BUYS THAT GROWTH FORECASTS WERE PREDICATED ON BOEING HAD BEEN USING INTERNAL FORECASTS OF 15000 TO 20000 FOR THE 1993 JOB REDUCTIONS WITH MORE CUTS TO COME IN 1994 AS BOEING'S WORKFORCE REDUCTION GOES INTO EFFECT A NETWORK OF COMMUNITIES AND SUPPLIERS WILL START TO FEEL THE PINCH CHANG MOOK SOHN AN ECONOMIST FOR WASHINGTON STATE SAID HE ANTICIPATES A MULTIPLE OF THREE JOBS LOST FOR EVERY BOEING LAYOFF A TOTAL OF 76000 JOBS OR CLOSE TO 8 OF THE SEATTLE METROPOLITAN AREA'S EMPLOYMENT BASE OF ONE MILLION MR SOHN ALSO FORECAST THAT WASHINGTON WILL LOSE 350 MILLION TO 500 MILLION IN REVENUE AND 8000 EXPECTED HOUSING STARTS AS A RESULT OF THE CUTS BOEING'S LATEST PAYROLL SLASH ISN'T AS DEEP AS THE 70 CUT IT TOOK IN THE EARLY 1970S BUT IN WICHITA'S CASE THE JET MAKER'S PLANS COME ON THE HEELS OF ANOTHER BIG JOB LOSS 1800 SEARS ROEBUCK & CO REDUCTIONS LINKED TO ITS SOONTOBECLOSED CATALOG BUSINESS THE COMBINED EFFECT LEAVES MANY FAMILIES FACING BOTH BARRELS SAID WICHITA MAYOR FRANK OJILE FOR A LOT OF PEOPLE DAD WORKED AT BOEING AND MOM WORKED AT SEARS CATALOGING MR OJILE SAID BOEING IS THE LARGEST EMPLOYER IN THE STATE OF KANSAS WE'RE JUST GOING TO HAVE TO BRACE OURSELVES WICHITA OFFICIALS PLAN TO TALK TO LOCAL HOSPITALS AND CLINICS HOPING TO ARRANGE SLIDINGSCALE OR FREE HEALTH CARE HE ADDED BOEING EMPLOYEES FACING LAYOFF WON'T RECEIVE ANY SPECIAL BENEFITS PACKAGE THE COMPANY IS CONSIDERING OTHER PALLIATIVE MEASURES SUCH AS A POSSIBLE TWOYEAR EDUCATIONAL LEAVE THAT WOULD BE PAID FOR BY BOEING OR THE PLACEMENT OF EMPLOYEES WITH SUPPLIERS FOR WORKERS THAT REMAIN BOEING PLANS TO CUT BACK ON OVERTIME SAID MR MCKEAN THE PERSONNEL VICE PRESIDENT ONE BOEING SUPPLIER ROHR INC OF CHULA VISTA CALIF SAID THE BOEING PRODUCTION CUTS WOULDN'T AFFECT ITS 1993 FORECAST OF A 10 SALES DROP AT ROHR FROM 1992 LEVELS BUT A ROHR SPOKESMAN SAID THE COMPANY IS NOW LOOKING AT THE HIGHER END OF A WORK FORCE REDUCTION ANNOUNCED LAST FALL OF 1500 TO 2000 OVER THE NEXT COUPLE OF YEARS STEVE WILHELM CONTRIBUTED TO THIS ARTICLE 9302190017 930219 STEEL IMPORTS DROPPED 155 IN DECEMBER FROM PREVIOUS MONTH WASHINGTON US STEEL IMPORTS FELL 155 IN DECEMBER FROM NOVEMBER BUT CLIMBED 3 FROM DECEMBER 1991 DECEMBER IMPORTS TOTALED 1364000 TONS COMPARED WITH 1614000 TONS IN NOVEMBER AND 1325000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS DECEMBER IMPORTS REPRESENTED 18 OF CONSUMPTION DOWN FROM 208 IN NOVEMBER AND OFF FROM 189 A YEAR EARLIER AN INDICATION THAT FOREIGN STEEL HAS BEGUN TO RETREAT FROM THE MARKET BECAUSE OF US STEELMAKERS' TRADE CASES EXPORTS IN DECEMBER TOTALED 348000 TONS DOWN FROM 355000 TONS IN NOVEMBER AND 447000 TONS IN DECEMBER 1991 THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL SAID THAT BECAUSE 1992 STEEL IMPORT PENETRATION OF 179 REMAINED AT 1991 LEVELS AIIS QUESTIONS CREDIBILITY OF CURRENT CHARGES BY DOMESTIC STEEL PRODUCERS OF INJURY CAUSED BY STEEL IMPORTS 9302190016 930219 MONEY FUND ASSETS DECLINED 645 BILLION IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 645 BILLION TO 59229 BILLION FROM 59874 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 616 RETAIL MONEY MARKET MUTUAL FUNDS ROSE 249 BILLION TO 38660 BILLION THE TRADE GROUP SAID ASSETS OF 381 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 230 BILLION TO 30464 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS ROSE BY 1885 MILLION TO 8196 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 894 BILLION TO 20569 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 223 TAXABLE MONEY MARKET FUNDS FELL BY 869 BILLION TO 18331 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 2537 MILLION TO 2238 BILLION 9302190014 930219 JUDGE REJECTS MOST NEGLIGENCE CHARGES AGAINST FORMER AIDES OF A FAILED BANK BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE THREW OUT MOST OF THE GOVERNMENT'S NEGLIGENCE AND BREACHOFDUTY CHARGES AGAINST 11 FORMER DIRECTORS OR OFFICERS OF THE FAILED NATIONAL BANK OF WASHINGTON AND CRITICIZED THE RATIONALE FOR THE LAWSUIT US DISTRICT JUDGE ROYCE LAMBERTH RULED THAT MOST OF THE CASE BROUGHT BY THE FEDERAL DEPOSIT INSURANCE CORP AGAINST LUTHER HODGES JR NBW'S FORMER CHAIRMAN THOMAS HALE BOGGS JR A DEMOCRATIC LOBBYIST IN WASHINGTON AND NINE OTHERS WAS WITHOUT MERIT SO MUCH SO JUDGE LAMBERTH SAID THAT HE WILL REQUIRE THE GOVERNMENT TO PAY THE DEFENDANTS' LEGAL COSTS FOR CONTESTING AT LEAST ONE OF THE CHARGES THE DECISION FOLLOWED A SIMILAR THREEJUDGE US APPEALS COURT RULING TWO WEEKS AGO IN A SEPARATE CASE INVOLVING THE OFFICE OF THRIFT SUPERVISION ANOTHER FEDERAL FINANCIAL REGULATOR IT COULD BE A SETBACK FOR EFFORTS OF THE AGENCIES TO GO AFTER OFFICERS DIRECTORS AND LAWYERS TO IMPOSE LIABILITY CLAIMS ON THEM AFTER BANKS OR SAVINGSANDLOAN INSTITUTIONS FAIL BECAUSE OF THE NEGLIGENCE QUESTION AND SOME OTHER LEGAL ISSUES INVOLVED JUDGE LAMBERTH'S RULING IN THE NBW CASE WAS SORT OF A TURNING POINT SAID RONALD GLANCZ AN ATTORNEY WITH THE LAW FIRM OF VENABLE BAETJER HOWARD & CIVILETTI HIS FIRM REPRESENTED J MITCHELL NEITZEY A FORMER NBW LOAN OFFICER AND ONE OF THE DEFENDANTS IN THE CASE BEFORE THE FDIC ITSELF THOUGH IT DIDN'T REPRESENT HIM IN THE COURT CASE HOWEVER THE CASE WAS ILLFATED AT THE BEGINNING WITH THE JUSTICE DEPARTMENT ON BEHALF OF THE FDIC FILING SERIOUSLY FLAWED CHARGES MR GLANCZ SAID JUDGE LAMBERTH SAID HE IS GREATLY TROUBLED WITH THE CALLOUS DISREGARD OF LAW FIDUCIARY DUTIES AND THE INTERESTS OF DEPOSITORS SHOWN BY DIRECTORS AND OFFICERS OF COUNTLESS BANKS AND SAVINGS AND LOANS HE SAID THAT LIKE THE FDIC AND TAXPAYERS HE WOULD LIKE TO SEE THESE INDIVIDUALS MADE TO PAY FOR THEIR ERRORS HOWEVER THE JUDGE SAID HE COULD HAVE DISMISSED MANY OF THE CHARGES AGAINST THE 11 NBW DEFENDANTS FOR MORE THAN ONE REASON MOST OF THE DEFENDANTS PERFORMED THEIR DUTIES AND FULFILLED THEIR RESPONSIBILITIES ADMIRABLY AT LEAST CONCERNING THE ISSUES IN THE CASE AN IMPORTANT PART OF JUDGE LAMBERTH'S DECISION WAS HIS RULING THAT THE GOVERNMENT HAD TO SHOW GROSS NEGLIGENCE ON THE PART OF THE NBW OFFICERS AND DIRECTORS AND FAILED TO DO SO WHILE SIMPLE NEGLIGENCE WOULD BE A SUFFICIENT STANDARD TO ESTABLISH LIABILITY WHEN FOR INSTANCE AN S&L INVESTS FOR THE FIRST TIME IN SPECULATIVE OIL FIELDS A TOUGHER STANDARD OF GROSS NEGLIGENCE IS REQUIRED FOR MOREROUTINE TRANSACTIONS SUCH AS THOSE IN THE NBW CASE THE JUDGE SAID INDEPENDENT DISINTERESTED DIRECTORS RARELY ARE FOUND TO HAVE VIOLATED THE GROSSNEGLIGENCE STANDARD HE SAID JUDGE LAMBERTH ALSO SAID THE FDIC FAILED TO SHOW THAT THE NBW DEFENDANTS EVIDENCED BAD FAITH OR OTHERWISE DIDN'T EXERCISE PRUDENT BUSINESS JUDGMENT THE AGENCY ALSO DIDN'T SHOW THAT THE DEFENDANTS BREACHED THEIR FIDUCIARY DUTY BY FAILING TO DEMONSTRATE ADEQUATE LOYALTY TO NBW OR BY EXERTING PROPER CARE IN CARRYING OUT THEIR DUTIES HE SAID AN FDIC SPOKESMAN YESTERDAY SAID THE AGENCY IS REVIEWING THE COURT DECISION AND HASN'T DECIDED WHETHER TO APPEAL IT THE FDIC SUIT SOUGHT MORE THAN 140 MILLION IN DAMAGES FROM THE 11 DEFENDANTS IT CHARGED THEM WITH TAKING PART IN RISKY TRANSACTIONS TO TRY TO MAKE THE BANK AND ITS HOLDING COMPANY WASHINGTON BANCORP MORE ATTRACTIVE TO POTENTIAL PURCHASERS THE BANK WAS ACQUIRED IN 1990 BY RIGGS NATIONAL CORP OF WASHINGTON JUDGE LAMBERTH CLEARED ALL THE DIRECTORS EXCEPT MR HODGES AND ATTORNEY ROBERT WASHINGTON OF ALL CHARGES AND ALSO THE TWO MEN OF MOST OF THE CHARGES AGAINST THEM 9302190013 930219 MARKETING BRIEF NOTED NEWSPAPERS NEW YORK TIMES CO NAMED RUSSELL T LEWIS 45 PRESIDENT AND GENERAL MANAGER OF ITS FLAGSHIP NEW YORK TIMES NEWSPAPER RESPONSIBLE FOR ALL BUSINESSSIDE ACTIVITIES HE WAS EXECUTIVE VICE PRESIDENT AND DEPUTY GENERAL MANAGER HE SUCCEEDS LANCE R PRIMIS WHO IN SEPTEMBER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT IN OTHER CHANGES JOHN M O'BRIEN 50 EXECUTIVE VICE PRESIDENT AND DEPUTY GENERAL MANAGER WAS GIVEN THE ADDED RESPONSIBILITY FOR ALL OF THE NEWSPAPER'S OPERATIONS DEPARTMENTS KAREN MESSINEO 36 WHO WAS CONTROLLER WAS NAMED THE PAPER'S VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PENELOPE MUSE ABERNATHY 41 THE TIMES NEWSROOM BUSINESS MANAGER WAS NAMED VICE PRESIDENT PLANNING A NEW POST 9302190012 930219 BUSINESS BRIEF CAPITAL RE CORP REINSURER POSTS 38 RISE IN FOURTHQUARTER PROFIT CAPITAL RE CORP SAID IN NEW YORK THAT FOURTHQUARTER NET INCOME ROSE 38 LARGELY REFLECTING HIGHER INVESTMENT INCOME NET ROSE TO 85 MILLION OR 57 CENTS A SHARE FROM 61 MILLION OR 59 CENTS A SHARE ON FEWER SHARES A YEAR AGO REVENUE ROSE 22 TO 151 MILLION FROM 124 MILLION CAPITAL RE WHICH REINSURES MUNICIPAL BONDS AND OTHER FINANCIAL GUARANTEES RAISED 60 MILLION WHEN IT WENT PUBLIC LAST APRIL INVESTMENT OF THE PROCEEDS OF THE PUBLIC OFFERING HELPED BOOST INVESTMENT INCOME IN THE QUARTER AND YEAR FOR THE FULL YEAR PROFIT ROSE 36 TO 301 MILLION OR 216 A SHARE FROM 221 MILLION OR 214 A SHARE IN 1991 REVENUE CLIMBED 41 TO 584 MILLION FROM 413 MILLION 9302190011 930219 LUFTHANSA SEEKS INTERNATIONAL PARTNERSHIPS CARRIER WANTS TO BROADEN MARKET SHARE REVERSE TWO YEARS OF LOSSES BY ALEX KETO SPECIAL TO THE WALL STREET JOURNAL BONN AS DEUTSCHE LUFTHANSA AG FINISHES ITS SECOND YEAR OF HEAVY LOSSES THE GERMAN AIR CARRIER IS LOOKING FOR INTERNATIONAL PARTNERSHIPS AS ONE WAY TO BROADEN ITS MARKET SHARE AND REVERSE ITS FORTUNES THERE IS NO DOUBT THAT WE ARE LOOKING FOR ALLIANCES IN ORDER TO OPTIMIZE OUR FLIGHT NETWORK IN EUROPE SAID ADRIAN VON DOERNBERG A MEMBER OF THE AIRLINE'S BOARD AND LUFTHANSA'S CHIEF EXECUTIVE FOR PASSENGER SALES AND MARKETING ALTHOUGH FINAL FIGURES HAVEN'T BEEN PUBLISHED LUFTHANSA WILL POST RECORD OPERATING LOSSES IN 1992 ACCORDING TO CHAIRMAN JUERGEN WEBER HE PROVIDED NO FIGURES BUT THE CARRIER PREVIOUSLY FORECAST AN OPERATING LOSS OF 12 BILLION MARKS 7393 MILLION IN 1992 AND ANALYSTS HAVE PREDICTED NET LOSSES OF ABOUT 430 MILLION MARKS IN 1991 LUFTHANSA POSTED A NET LOSS OF 444 MILLION MARKS AS PART OF A BROADER EFFORT TO TURN ITS OPERATIONS AROUND MR WEBER TOLD THE AMERICAN CHAMBER OF GERMANY LUFTHANSA LIKELY WILL HAVE TO CUT ITS WORK FORCE BY 5000 FROM 44000 AT THE END OF 1992 THE AIR CARRIER WHICH IS MAJORITYOWNED BY THE GERMAN GOVERNMENT IS PARTICULARLY INTERESTED IN FORGING LINKS WITH A US CARRIER OR EXPANDING ITS NETWORK OF ALLIANCES IN WESTERN EUROPE MR VON DOERNBERG SAID IN AN INTERVIEW IN EASTERN EUROPE WHERE LUFTHANSA IS ALREADY THE DOMINANT CARRIER THE AIRLINE WILL STRENGTHEN ITS CLOUT BY INCREASING THE NUMBER OF ITS FLIGHTS WE ARE IDEALLY POSITIONED IN EUROPE LINKING EAST AND WEST MR VON DOERNBERG SAID GERMANY ITSELF IS A KIND OF HUB AND WE WANT TO TAKE ADVANTAGE OF OUR POSITION HOWEVER THE SEARCH FOR NEW INTERNATIONAL LINKS WILL BE EITHER DIFFICULT IN THE CASE OF A US PARTNERSHIP OR UNSPECTACULAR IN THE CASE OF A WESTERN EUROPEAN LINKUP ANALYSTS SAID A US PARTNERSHIP WOULD PROVIDE LUFTHANSA WITH DIRECT ACCESS TO THE US DOMESTIC MARKET AND WOULD BRING CUSTOMERS INTO ITS NORTH ATLANTIC ROUTE WHERE THE FINANCIAL STAKES ARE HIGHEST AND COMPETITION IS FIERCE WE POSITIVELY NEED A FEEDER SERVICE IN THE UNITED STATES AND THE US CARRIERS NEED SOMETHING SIMILAR HERE IN EUROPE MR VON DOERNBERG SAID WE ARE STILL LOOKING FOR COOPERATION IN THE UNITED STATES AND WE HAVE TALKED TO MANY CARRIERS DESPITE THE LOGIC OF A US PARTNERSHIP ANALYSTS ARE SKEPTICAL ONE CAN BE FORGED IF A EUROPEAN COMPANY WANTS TO BUY A US CARRIER THEY HAVE TO BE PREPARED TO TAKE ON HEAVY LOSSES SAID BERND PINNECKE A DEUTSCHE BANK RESEARCH ANALYST IN FRANKFURT MOST US CARRIERS ARE CHAPTER 11 REORGANIZATION UNDER BANKRUPTCYCOURT PROTECTION CANDIDATES THE EXPERIENCE OF KLM ROYAL DUTCH AIRLINES PROVIDES A SOBERING EXAMPLE OF THE PITFALLS OF US PARTNERSHIPS THE DUTCH AIR CARRIER RECENTLY SAID IT WOULD WRITE OFF 305 MILLION GUILDERS 1663 MILLION THE REMAINING VALUE OF ITS HOLDINGS IN WINGS HOLDING INC THE PARENT OF NORTHWEST AIRLINES LUFTHANSA WITH ITS ALREADY HUGE LOSSES IS HARDLY IN A POSITION TO TAKE ON FURTHER FINANCIAL LIABILITIES OTHER ANALYSTS SAY US CARRIERS MAY BE LESS THAN ENTHUSIASTIC ABOUT A LINK WITH LUFTHANSA IT IS CERTAINLY TRUE THAT LUFTHANSA NEEDS THE ALLIANCE MORE THAN THE US CARRIERS DO SAID JOSH WAIBLINGER ASSISTANT VICE PRESIDENT WITH BERLINER HANDELSUND FRANKFURTER BANK IN FRANKFURT LUFTHANSA'S ACCESS TO THE US MARKET HAS IMPROVED BUT THE DESTINATIONS IT CAN REACH ARE STILL LIMITED THEY NEED ACCESS TO THE AIRPORTS AND THE CONNECTING FLIGHTS IN THE US IT IS THE SMALLER DOMESTIC US ROUTES AND THE LANDING RIGHTS THAT ARE CRITICAL MR WAIBLINGER SAID IN WESTERN EUROPE A BLOCKBUSTER LINKUP WITH ANOTHER MAJOR NATIONAL AIR CARRIER ISN'T REALISTIC BECAUSE OF THE HEAVY INVOLVEMENT OF EUROPE'S GOVERNMENTS AND THEIR NATIONALISTIC TENDENCY TO SQUELCH SUCH A MOVE RATHER NEW PARTNERSHIPS WILL EITHER MIRROR OR DEEPEN LUFTHANSA'S AGREEMENTS WITH FINNISH NATIONAL AIR CARRIER FINNAIR INDEPENDENT AUSTRIABASED CARRIER LAUDAAIR OR LUXEMBOURG'S LUXAIR THE NEED FOR LINKS IN WESTERN EUROPE IS DUE PARTLY TO THE FACT THAT THE DEREGULATION OF THE EUROPEAN COMMUNITIES' SKIES HAS BEEN LESS THAN MEETS THE EYE ALTHOUGH EC RULES NOW ALLOW FOREIGN CARRIERS TO PICK UP AND CARRY PASSENGERS ALONG DOMESTIC EUROPEAN ROUTES EACH ROUTE HAS TO BE APPROVED SEPARATELY BY VARIOUS MINISTRIES SINCE THE APPROVALS HAVEN'T BEEN FORTHCOMING NATIONAL GOVERNMENTS ARE STILL EFFECTIVELY BARRING AIR CARRIERS FROM DOMESTIC ROUTES MR VON DOERNBERG SAID SO FAR LUFTHANSA HAS RECEIVED PERMISSION ON ONLY ONE SUCH FLIGHT ITS MUNICH TO BARI ROUTE VIA ROME YOU HAVE TO TAKE INTO ACCOUNT OUR SUBSIDIARY LUFTHANSA CITYLINE WHICH IS EQUIPPED WITH THE CHALLENGER A REGIONAL JET SAID MR VON DOERNBERG WITH THAT WE CAN OFFER MORE FLIGHTS AND MORE DESTINATIONS IN THE LOW DENSITY ROUTES IN EUROPE 9302190010 930219 EC SWITCHES HDTV FOCUS TO WIDE SCREENS CHANGE IN FORMATS OPENS PATH FOR MANUFACTURERS TO DIGITAL BROADCASTS BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY'S INDUSTRY COMMISSIONER IN AN IMPORTANT SHIFT ACKNOWLEDGED THE EC MUST CHANGE ITS FOCUS ON HIGHDEFINITION TELEVISION FROM PROMOTING A SINGLE INTERIM BROADCASTING NORM TO ENCOURAGING PRODUCTION OF WIDESCREEN TV SETS MARTIN BANGEMANN SAID IT WAS FRUITLESS IN LIGHT OF RAPID IMPROVEMENTS IN ADVANCED DIGITAL TECHNOLOGY THE BROADCASTING NORM OF THE FUTURE TO CONTINUE LINKING THE COMMUNITY'S HDTV EFFORTS TO AN INTERMEDIATE ANALOG TECHNOLOGY KNOWN AS THE MAC STANDARD THE KEY TO THE EC COMMISSION'S NEW STRATEGY IS TO INSTEAD PROMOTE PRODUCTION OF WIDESCREEN TELEVISION SETS WHOSE MOVIEFRIENDLY 9BY16 FORMATS COULD BE USED IN WHATEVER NORM THE BROADCASTERS CHOOSE IN THAT WAY OFFICIALS SAID EUROPEAN MANUFACTURERS WOULD HAVE A FOOTHOLD IN THE MARKET WHEN FULLY DIGITAL HDTV IS LAUNCHED WE THOUGHT WE HAD TIME TO BRING AN INTERMEDIATE ANALOG SYSTEM ONTO THE MARKET BUT NOW IT APPEARS DIGITAL WILL BE WITH US BY 1997 MR BANGEMANN TOLD JOURNALISTS THE SYSTEM OF THE FUTURE IS DIGITAL THAT IS ACCEPTED BY THE INDUSTRY THE REMARKS BY MR BANGEMANN MARKED A KEY CONCESSION WHICH CRITICS FELT WAS LONG OVERDUE THAT HDTV PLANS CONCEIVED BY THE COMMISSION IN THE MID1980S HAVE BEEN OVERTAKEN BY TECHNOLOGICAL ADVANCES SPECIFICALLY THE COMMISSION HAD SOUGHT TO BOOST EUROPE'S HDTV INDUSTRY BY PROMOTING ITS OWN D2MAC AND HDMAC NORMS AS THE PREDIGITAL BROADCASTING STANDARDS IN EUROPE BUT BROADCASTERS BALKED AT TRANSMITTING PROGRAMS IN THOSE NORMS AND DIGITAL TECHNOLOGY DEVELOPED FASTER THAN EXPECTED AS A RESULT BRITAIN HAS BLOCKED THE COMMISSION'S PROPOSAL TO SPEND 500 MILLION EUROPEAN CURRENCY UNITS 5978 MILLION ON A FIVEYEAR HDTV ACTION PROGRAM ARGUING THE MONEY WOULD BE WASTED MR BANGEMANN SAID HE MAY SEEK A SPECIAL MEETING OF EC MINISTERS IF IT WOULD HELP FIND A COMPROMISE ACCEPTABLE TO BRITAIN ALONG THE NEW LINES SUGGESTED BY HIM AND HIS AIDES THE NEXT SCHEDULED MEETING OF EC TELECOMMUNICATIONS MINISTERS IS MAY 10 ONE OF BRITAIN'S CONCERNS ABOUT THE COMMISSION'S EARLIER PLANS WAS THAT IT SEEMED SPECIFICALLY TAILORED TO PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THOMSON SA OF FRANCE WHICH HAVE INVESTED HEAVILY IN HDTV TECHNOLOGY USING THE MAC STANDARD BY FOCUSING ON THE WIDESCREEN FORMAT RATHER THAN THE INTERIM TECHNOLOGY THE NEW STRATEGY IS DESIGNED TO BE MORE MANUFACTURERBLIND BUT IT WAS NOT CERTAIN THE COMMISSION'S NEW TACTICS WOULD SATISFY THE BRITISH WHOSE CONCERNS ABOUT THE ORIGINAL PLANS ALSO INCLUDED PHILOSOPHICAL OBJECTIONS TO SUBSIDIZED PRODUCTION OF NEW PRODUCTS REGARDLESS OF THE TECHNOLOGY INVOLVED A BRITISH OFFICIAL SAID MR BANGEMANN'S COMMENTS APPEARED TO RECOGNIZE ONE OF THE POINTS WE HAVE BEEN CONCERNED ABOUT THAT THE EC SEEMED TO BE HITCHING ITSELF TO A TECHNOLOGY THAT WAS LEADING US DOWN A BLIND ALLEY IN TERMS OF ANALOG BUT WE'LL HAVE TO EXAMINE THE DETAILS HE SAID OF MR BANGEMANN'S NEW STRATEGY IT DOESN'T MEAN WE'RE OUT OF THE WOODS YET PHILIPS SAID IT WELCOMED THE COMMISSION'S NEW THINKING BECAUSE IT MIGHT UNBLOCK THE DEADLOCK AMONG EC MINISTERS OUR STRATEGY IS TO PRODUCE WIDESCREEN TELEVISION SETS IN WHATEVER TECHNOLOGY IS FEASIBLE A SPOKESWOMAN SAID THE DUTCH COMPANY HAS ALREADY MARKETED WIDESCREEN SETS WITH THE D2MAC NORM BUT DECIDED LAST MONTH TO ABORT PRODUCTION OF HDMAC SETS DUE TO THE LACK OF PROGRAMMING AVAILABLE TO BE SHOWN ON THEM 9302190009 930219 KIRIN PRETAX PROFIT FOR 1992 DECLINED BUT NET WAS UP 22 STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO KIRIN BREWERY CO JAPAN'S TOP BEER MAKER REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT FOR 1992 SLIPPED 43 TO 8271 BILLION YEN 6923 MILLION FROM 8642 BILLION YEN A YEAR EARLIER NET INCOME HOWEVER WAS UP 22 TO 3752 BILLION YEN AND SALES ROSE 38 TO 1366 TRILLION YEN 114 BILLION THE COMPANY CITED STEADY DEMAND FOR STAPLE KIRIN LAGER BEER AND ICHIBAN LABELS AND STRONG SALES OF ITS TWO PHARMACEUTICAL PRODUCTS KIRIN SAID IT EXPECTS UNCONSOLIDATED PRETAX PROFIT FOR 1993 TO EDGE UP 04 TO 83 BILLION YEN AND NET INCOME TO RISE 13 TO 38 BILLION YEN THE BREWERY SAID IT IS LOOKING FOR SALES TO CLIMB 32 TO 1410 TRILLION YEN THE COMPANY SAID THAT IT CAN'T COUNT ON AN EARLY AND QUICK RECOVERY IN THE ECONOMY TO LIFT BEER SALES DURING THE YEAR AND WILL RELY ON ITS MAJOR BRANDS FOR STABLE SALES AND PROFITS A KIRIN SPOKESMAN SAID NIPPON BLEND A NEW BEER LABEL INTRODUCED THIS MONTH SHOULD ACCOUNT FOR ABOUT 3 OF OVERALL SALES DURING THE YEAR NIPPON BLEND IS TARGETED AT JAPANESE TASTES AND ADVERTISES ITSELF AS HAVING 70 MORE RICE IN THE MIX THAN OTHER BRANDS THE COMPANY SAID IT INTENDS TO PAY A DIVIDEND OF 10 YEN 837 CENTS A SHARE FOR 1993 UNCHANGED FROM THE YEAR AGO KIRIN SAID THAT DURING THE YEAR ENDED DEC 31 BEER SALES ROSE 34 TO 1328 TRILLION YEN FROM 1284 TRILLION YEN A YEAR EARLIER PHARMACEUTICAL SALES SURGED 85 TO 1861 BILLION YEN FROM 1009 BILLION YEN WHILE SALES OF OTHER GOODS SUCH AS FOODS WERE DOWN 90 TO 1940 BILLION YEN FROM 2130 BILLION YEN BEER MADE UP 97 OF ALL SALES PHARMACEUTICALS WERE 14 AND OTHER GOODS 14 9302190008 930219 BUSINESS BRIEF PEGASUS GOLD INC ZAPOPAN RIGHTS OFFERING TO BE BACKED BY COMPANY PEGASUS GOLD INC SPOKANE WASH SAID IT WILL STAND BEHIND A RIGHTS OFFERING OF ZAPOPAN NL OF AUSTRALIA AGREEING TO BUY ANY SHARES NOT BOUGHT BY EXISTING SHAREHOLDERS THE UNDERWRITER FOR THE 203 MILLION AUSTRALIAN DOLLARS US14 MILLION RIGHTS OFFERING IS PATERSON ORD MINNETT LTD OF AUSTRALIA PEGASUS AND ZAPOPAN ARE GOLD MINING COMPANIES 9302190007 930219 YOUR MONEY MATTERS WEEKEND REPORT BE READY TO REVISE INVESTMENT STRATEGIES IN LIGHT OF PRESIDENT'S ECONOMIC PLAN BY BARBARA DONNELLY GRANITO AND TOM HERMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NOW THE FINE TUNING BEGINS IF YOU'RE FORTUNATE ENOUGH TO BE IN THE UPPER 2 OF AMERICANS THOSE WITH INCOMES ABOVE 200000 PRESIDENT CLINTON'S ECONOMIC PLAN PROVIDES A BIG INCENTIVE TO START RETHINKING YOUR TAXPLANNING AND INVESTMENT STRATEGIES EVEN PEOPLE IN LOWER INCOME CATEGORIES MIGHT WANT TO REVISE THEIR STRATEGIES BECAUSE OF THE POTENTIAL IMPACT OF HIGHER TAXES ON STOCK AND BOND PRICES WHILE THERE'S NO GUARANTEE THE CHANGES MR CLINTON OUTLINED IN HIS ADDRESS TO CONGRESS WILL BECOME LAW WEALTHY INDIVIDUALS MAY NOT WANT TO JUST SIT ON THE SIDELINES UNTIL THINGS ARE FULLY DECIDED AS PROPOSED SOME MAJOR CHANGES WOULD BE RETROACTIVE TO JAN 1 BUT SOME EXPERTS ARE SKEPTICAL ABOUT THE PROSPECTS OF THAT HAPPENING WHICH COULD LEAVE A WINDOW OF OPPORTUNITY FOR THOSE WHO ACT QUICKLY EVEN IF THE CHANGES WERE RETROACTIVE TO THE BEGINNING OF THIS YEAR THERE WOULD BE NO PENALTIES FOR UNDERWITHHOLDING OR MAKING ESTIMATED TAX PAYMENTS THAT ARE TOO LOW BASED ON THE NEW RULES WE'RE TELLING CLIENTS NOT TO PANIC SAYS STUART KESSLER OF GOLDSTEIN GOLUB KESSLER & CO AN ACCOUNTING FIRM UNDER MR CLINTON'S PROPOSALS PEOPLE WITH TAXABLE INCOME OF 250000 OR MORE WOULD BE TAXED AT A MARGINAL RATE OF 396 UP FROM 31 UNDER THE CURRENT LAW BUT THE INCREASE WOULD ACTUALLY BE EVEN LARGER THAN THAT OWING TO SEVERAL FACTORS THESE INCLUDE THE PHASEOUT OF SOME PERSONAL EXEMPTIONS THE LIMITATION OF ITEMIZED DEDUCTIONS AND THE EXTENSION OF THE 145 MEDICARE LEVY TO COVER ALL EARNED INCOME THE ACTUAL RATE COULD BE ABOVE 43 FOR MANY UPPERINCOME TAXPAYERS ESPECIALLY THOSE WITH LARGE NUMBERS OF DEPENDENTS ACCORDING TO CALCULATIONS BY STANLEY BREITBARD NATIONAL DIRECTOR PERSONAL FINANCIAL SERVICES AT PRICE WATERHOUSE AT THAT LEVEL WEALTHY INDIVIDUALS START TO HAVE A REAL INCENTIVE TO TRY TO MINIMIZE THE GOVERNMENT'S TAKE OF THEIR EARNINGS AND INVESTMENT RETURNS OUR VIEW OF INVESTMENT STARTS WITH THE IDEA THAT WHAT MATTERS IS HOW MUCH YOU GET TO KEEP AFTER RETURNS ARE ERODED BY TAXES AND INFLATION SAYS VICTOR CANTO OF AB LAFFER VA CANTO & ASSOCIATES IN GENERAL THE IMPACT OF HIGHER TAXES WILL BE NEGATIVE FOR ALL INVESTMENTS BUT THE DAMAGE WON'T BE SHARED EQUALLY BY ALL SECTORS OF THE MARKET MR CANTO'S ADVICE IS TO RAISE MORE CASH REDUCE EXPOSURE TO DOMESTIC STOCKS ESPECIALLY LARGE STOCKS MAYBE PUT MORE MONEY INTO INTERNATIONAL STOCKS AND SHORTEN THE MATURITY OF BOND INVESTMENTS HE SAYS PEOPLE SHOULDN'T DUMP THEIR INVESTMENTS IN PANIC TO MAKE THESE CHANGES BUT TO DO IT ON THE MARGIN TO THE MAXIMUM AMOUNT YOU FEEL COMFORTABLE AN OBVIOUS WAY FOR HIGHINCOME TAXPAYERS TO START REALIZING SAVINGS IS TO SOCK AS MUCH MONEY AWAY AS POSSIBLE IN TAXFAVORED INVESTMENT VEHICLES SUCH AS INDIVIDUAL RETIREMENT ACCOUNTS EMPLOYERSPONSORED 401K RETIREMENT PLANS AND KEOGH RETIREMENT PLANS FOR SELFEMPLOYMENT INCOME FOR SOME PEOPLE TAXDEFERRED ANNUITIES CAN ALSO BE WORTH LOOKING INTO BUT DON'T RUSH INTO THESE OR OTHER TAX SHELTERS WITHOUT FULLY UNDERSTANDING THE COSTS AND PENALTIES THEY MAY INVOLVE BUT INVESTORS SHOULD PROBABLY CAST A SKEPTICAL EYE ON INVESTMENTS WHOSE SOLE APPEAL IS THEIR ABILITY TO SHELTER INCOME FROM THE GOVERNMENT THE BOTTOM LINE IS THAT YOU'VE GOT TO MAKE DECISIONS ABOUT THE ATTRACTIVENESS OF DIFFERENT ASSETS ON A PRETAX BASIS BY EXAMINING THE ECONOMIC AND FINANCIAL ENVIRONMENT WITHOUT CONSIDERING TAXES THEN LOOK AT THE IMPACT OF TAXES AS A SECONDARY CONSIDERATION SAYS RICHARD BERNSTEIN MANAGER OF QUANTITATIVE ANALYSIS AT MERRILL LYNCH & CO FORTUNATELY IT SEEMS THAT WHAT LOOKS GOOD ON AN ECONOMIC BASIS TODAY ALSO LOOKS PRETTY GOOD FROM A TAX STANDPOINT FOR INSTANCE TAXEXEMPT MUNICIPAL BONDS OFFER A VERY IMPRESSIVE RETURN RELATIVE TO INFLATION AND TREASURY BILLS SAYS ROBERT ARNOTT PRESIDENT OF FIRST QUADRANT CORP AN INVESTMENT FIRM THAT SPECIALIZES IN GAUGING THE RELATIVE APPEAL OF DIFFERENT ASSETS THEY'RE ATTRACTIVE TO BEGIN WITHBUT BECOME EVEN MORE SO UNDER THE NEW PROPOSALS LIKEWISE SMALL STOCKS DESPITE THEIR RECENT PRICE DECLINE REMAIN ONE OF THE MOST ATTRACTIVE SECTORS OF THE US STOCK MARKET EVEN BEFORE TAXES ARE TAKEN INTO ACCOUNT STRATEGISTS SAY THEIR ALLURE WOULD ONLY INCREASE UNDER THE NEW ECONOMIC PLAN OUR FAVORITE SECTOR REMAINS SMALLCAPITALIZATION VALUE' STOCKS SAYS MERRILL'S MR BERNSTEIN THESE ARE SMALL STOCKS WHOSE PRICES LOOK INEXPENSIVE RELATIVE TO EARNINGS DIVIDENDS AND OTHER FUNDAMENTALS THEY'RE MORE CONSERVATIVELY PRICED AND HAVE MORE POTENTIAL FOR GROWTH IN THE YEARS AHEAD THAN OTHER SECTORS OF THE STOCK MARKET HE SAYS MR CLINTON'S PROPOSALS WOULD MAKE SMALL STOCKS SHINE EVEN BRIGHTER FOR ONE THING THEIR RETURNS TEND TO COME IN THE FORM OF CAPITAL GAINS RATHER THAN IN DIVIDENDS AND CAPITALGAINS TAX RATES WOULD REMAIN UNCHANGED AT 28 UNDER THE PRESIDENT'S PLAN MOREOVER THE PROPOSAL TARGETS SMALL COMPANIES FOR A HOST OF BREAKS INCLUDING INVESTMENT TAX CREDITS AND POTENTIAL REDUCTIONS IN CAPITALGAINS TAXES THAT COULD TRANSLATE INTO BIG BUCKS FOR INVESTORS SMALL COMPANIES WITH THE PROSPECT OF GOOD CAPITAL GAINS ARE THE WAVE OF THE FUTURE SAYS MR CANTO IN AN ENVIRONMENT OF MORE GOVERNMENT REGULATION AND INTERVENTION SMALL COMPANIES ARE MORE ABLE TO REINVENT THEMSELVES TO QUALIFY FOR WHAT THE GOVERNMENT IS DISHING OUT OF COURSE EARNINGS OF COMPANIES WITH TAXABLE INCOME EXCEEDING 10 MILLION A YEAR WOULD SUFFER FROM HIGHER CORPORATE INCOME TAXES 36 UP FROM 34 BECAUSE THE TREND IN A COMPANY'S STOCK PRICE TENDS TO BE CLOSELY LINKED TO THE GROWTH IN ITS EARNINGS HIGHER TAXES ON THOSE EARNINGS COULD END UP DRAGGING DOWN SHARE PRICES AND ULTIMATELY REDUCE THE MONEY INVESTORS TAKE HOME IN CAPITAL GAINS BUT THE TAX IMPACT IS MINIMAL COMPARED WITH WHAT HAPPENS TO BIG HIGHYIELDING STOCKS IN TAX LAW IT'S THE RULE THAT YOU GO AFTER THE GUYS WITH BIG BUCKS AND IT'S THE SAME FOR COMPANIES AS FOR INDIVIDUALS SAYS MR CANTO STOCKS OF BIG COMPANIES STAND TO BE PARTICULARLY HARD HIT BY THE PROPOSED ECONOMIC PLAN THESE STOCKS TEND TO PAY OUT A BIGGER PORTION OF THEIR RETURNS IN DIVIDENDS THAN IN CAPITAL GAINS AND THAT WOULD MAKE THEIR RETURNS PARTICULARLY VULNERABLE TO TAX INCREASES THE REASON THE MONEY THAT COMPANIES DISTRIBUTE AS DIVIDENDS IS TAXED TWICE ONCE AS INCOME AT THE COMPANY LEVEL AND ONCE AS PERSONAL INCOME AT THE INVESTOR LEVEL AND BOTH RATES ARE SCHEDULED TO RISE UNDER THE NEW TAX PROPOSAL IN FACT MR CANTO CALCULATES THAT A COMPANY'S PRETAX INCOME WOULD HAVE TO RISE 21 FROM CURRENT LEVELS SIMPLY IN ORDER TO PAY OUT THE SAME AMOUNT IN AFTERTAX DIVIDENDS TO INVESTORS UNDER THE NEW TOP RATES ASSUMING RATES OF 41 FOR INDIVIDUALS AND 36 FOR CORPORATIONS PUT IN A MORE CHILLING WAY THOSE STOCKS' PRICES WOULD HAVE TO FALL BY 21 IN ORDER TO DELIVER THE SAME AMOUNT IN DIVIDENDS AFTER TAX TO INVESTORS MR CANTO SAYS BUT INVESTMENTS AREN'T THE ONLY THINGS TO THINK ABOUT MR CLINTON'S PROPOSED TAX CHANGES WOULD REVERBERATE THROUGHOUT THE FINANCIAL LIVES OF UPPERINCOME INDIVIDUALS TAX EXPERTS SAY THAT THE TREND TOWARD HIGHER RATES IS NOT LIKELY TO END ANY TIME SOON HERE ARE SOME OF THEIR SUGGESTION ABOUT WHAT TO DO EVALUATE YOUR ESTATE PLANNING THE PROPOSED CHANGES WOULD RAISE THE TOP ESTATETAX RATES TO 53 AND 55 BRINGING THEM BACK TO WHERE THEY HAD BEEN UNTIL THIS YEAR WHEN THEY BOTH DROPPED TO 50 THE 53 RATE APPLIES TO ESTATES WITH MORE THAN 25 MILLION AND THE 55 RATE APPLIES TO ESTATES OF MORE THAN 3 MILLION HOW BIG AN IMPACT THE CHANGES MAKE DEPENDS ON THE SIZE OF A TAXPAYER'S ESTATE SAYS ROBERT COPLAN A PRINCIPAL IN THE NATIONAL TAX DEPARTMENT OF ERNST & YOUNG HE ESTIMATES THAT SOMEONE WITH A 3 MILLION ESTATE WOULD PAY 10000 MORE IN ESTATE TAXES WHILE SOMEONE WITH A 5 MILLION ESTATE WOULD PAY 110000 MORE WATCH THE AMT FIGURE OUT IF YOU'LL BE AFFECTED BY THE ALTERNATIVE MINIMUM TAX THE SPECIAL TAX DESIGNED TO MAKE SURE THAT NOBODY GETS TO AVOID TAXES ENTIRELY THE TAX PROPOSAL WOULD INCREASE THE AMT RATE TO 26 FOR PEOPLE WITH MINIMUM TAXABLE INCOME OF LESS THAN 175000 AND TO 28 FOR THOSE ABOVE THAT THRESHOLD THE CURRENT RATE FOR THE TAX WHICH MUST BE USED BY TAXPAYERS WITH LARGE AMOUNTS OF EXEMPTIONS DEDUCTIONS AND PREFERENCE ITEMS IS 24 BECAUSE MR CLINTON WOULD ALSO RAISE THE LEVEL OF EXEMPTIONS THAT CAN BE TAKEN BY TAXPAYERS WITHOUT TRIGGERING THE AMT THE NUMBER OF PEOPLE EFFECTED BY THE ALTERNATIVE TAX IS LIKELY TO REMAIN UNCHANGED EVEN SO THE MEMBERS OF THE AMT CLUB MIGHT CHANGE MY ADVICE ON THE AMT HAS ALWAYS BEEN AND STILL IS THAT IF THERE'S A CHANCE YOU'LL BE SUBJECT TO THE TAX SIT DOWN WITH YOUR ACCOUNTANT AND GO THROUGH THE CALCULATIONS SAYS MARTIN SHENKMAN A LAWYER AND ACCOUNTANT IN NEW YORK CONSIDER GIFTS TO CHILDREN IF YOUR KIDS OR GRANDKIDS WOULD BE IN A MUCH LOWER TAX BRACKET THAN YOU WOULD BE UNDER THE PROPOSAL IT MIGHT BE WISE TO CONSIDER TRANSFERRING SOME ASSETS TO THEM WITH HIGHER TOP TAX RATES INCOME SHIFTING BECOMES A MORE VIABLE STRATEGY SAYS STEVEN B WEINSTEIN DIRECTOR OF PERSONAL FINANCIAL PLANNING AT ARTHUR ANDERSEN & CO IN CHICAGO TIMING COULD BE IMPORTANT IF YOU WERE CONSIDERING MAKING 10000 GIFTS TO YOUR CHILDREN AT THE END OF EACH YEAR AS MANY PEOPLE DO THINK ABOUT DOING IT NOW UNDER CURRENT LAW YOU CAN GIVE AWAY 10000 A YEAR TO AS MANY PEOPLE AS YOU WANT WITHOUT OWING ANY GIFT TAX EVEN THOUGH THE CLINTON PROGRAM DIDN'T IMPOSE ANY RESTRICTIONS ON THESE GIFTS SOME TAX ADVISERS SAY CONGRESS MIGHT DO SO RETROACTIVE TO THE DATE ON WHICH THE MEASURE WAS FIRST PROPOSED THAT'S WHY THESE ADVISERS SAY ANYONE WHO ALREADY WAS PLANNING TO MAKE LARGE AMOUNTS OF GIFTS LATER THIS YEAR MIGHT WANT TO DO SO NOW REMEMBER ALSO THAT A HUSBAND AND WIFE EACH CAN GIVE 10000 MAKING A TOTAL OF 20000 TO ANY OTHER INDIVIDUAL AN ARTFUL DEDUCTION MR CLINTON'S PLAN WOULD MAKE IT MORE ATTRACTIVE FOR MANY PEOPLE TO MAKE CHARITABLE DONATIONS OF ART COLLECTIBLES STOCKS BONDS AND OTHER PROPERTY THAT HAS RISEN IN VALUE THIS LITTLENOTICED PART OF THE PLAN WOULD MEAN THAT DONORS COULD MAKE SUCH GIFTS WITHOUT TRIGGERING A PROVISION OF THE ALTERNATIVE MINIMUM TAX FOR ARTWORKS AND OTHER TANGIBLE PROPERTY THE PLAN WOULD REINSTATE A LAW THAT EXPIRED JUNE 30 THIS PROPOSAL IS LIKELY TO BE GREETED ENTHUSIASTICALLY IN CONGRESS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY IS A STRONG SUPPORTER ELLEN E SCHULTZ CONTRIBUTED TO THIS ARTICLE MARRIED COUPLE WITH TWO SMALL CHILDREN AND ONE WAGE EARNER INCOME 40000 38000 FROM HUSBAND'S SALARY 1500 IN INVESTMENT INCOME FROM CDS AND A MONEYMARKET MUTUAL FUND TAX SITUATION NOTHING UNUSUAL THEY CLAIM THE STANDARD DEDUCTION ON THEIR FEDERAL TAX RETURN 6200 FOR 1993 IN HER MID70'S LIVING IN A RETIREMENT COMMUNITY INCOME 60000 36000 FROM INVESTEMTNS &8000 FROM SOCIAL SECURITY AND 16000 FROM HER LATE HUSBAND'S PENSION TAX SITUATION SHE OWNS HER CONDO AND IS COVERED BY MEDICARE SHE TAKES STANDARD DEDUCTION 4600 FOR 1993 UNDER THE PROPOSED CHANGES MORE OF HER SOCIAL SECURITY INCOME WOULD BE TAXABLE DOUBLE INCOME NO KIDS THEY'RE BOTH 36 YEARS OLD LIVING IN A HIGHLY MORTGAGED EXPENSIVE CONDO INCOME 185000 HE EARNS 85000 SHE 95000 PLUS 5000 OF INVESTMENT INCOME ESSENTIALLY HIS MONEY FUND TAX SITUATION LOST OF DEBT AND LOTS OF ITEMIZED DEDUCTIONS THAT LOWER THEIR TAXABLE INCOME INCLUDING A TOTAL OF 38000 IN PROPERTY TAXES AND INTEREST ON THEIR 400000 MORTGAGE HE'S A CORPORATE EXECUTIVE IN HIS LATE 50'S SHE'S A HOMEMAKER IN HER LATE 40S SERVING ON THE BOARDS OF SEVERAL LOCAL CHARITIES INCOME 11 MILLION INCLUDING HIS 800000 SALARY 200000 IN DIVIDENDS AND INTEREST AND 100000 IN CAPITAL GAINS ON THE SALE OF APPRECIATED STOCKS TAX SITUATION THEY HAVE LARGE ITEMIZED DEDUCTIONS ABOUT 370000 INCLUDING MORTGAGE INTEREST AND SUBSTANTIAL GIFTS TO CHARITIES BUT THEY WOULD BE HIT HARD BY THE HIGHER TAX RATES IN THE CLINTON PROPOSAL SOCIAL SECURITY TAXES FOR MEDICARE BUT EXCLUDE NEW TAXES ON ENERGY CONSUMPTION 9302190006 930219 BUSINESS BRIEF XEROX CORP CERTAIN PRICE INCREASES SET TO BECOME EFFECTIVE APRIL 1 XEROX CORP STAMFORD CONN ANNOUNCED SERVICEPRICE INCREASES EFFECTIVE APRIL 1 FOR MOST COMMERCIAL CUSTOMERS AND ON MOST DOCUMENTPROCESSING PRODUCTS XEROX SAID THE INCREASES RANGE FROM 2 TO 5 RENTALPRICE INCREASES FOR SELECTED PRODUCTS WILL RANGE FROM 3 TO 5 INCREASES FOR GOVERNMENT CUSTOMERS WILL BE EFFECTIVE AT THE BEGINNING OF THEIR NEXT CONTRACT FULLSERVICE MAINTENANCE AGREEMENTS FOR MOST CURRENT COPIER PRODUCTS WILL BE INCREASED BETWEEN 2 AND 45 THE INCREASE DOESN'T AFFECT THE RECENTLY INTRODUCED XEROX 5300 SERIES COPIERS SERVICEAGREEMENT PRICES FOR COPIER PRODUCTS THAT ARE NO LONGER CURRENT BUT ARE STILL BEING SUPPORTED WILL RANGE FROM 35 TO 10 RENTAL PRICES ARE BEING INCREASED 5 FOR THE XEROX 5090 DUPLICATOR AND 5100 COPIER THE INCREASES INCLUDE 5 FOR SERVICE CONTRACTS FOR ELECTRONIC TYPEWRITERS AND FOR IMPACT PRINTERS 9302190005 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT BATTLING THE ODDS ONE YEAR LATER FOR BLACK ENTREPRENEURS IN SOUTH CENTRAL LOS ANGELES THE RIOTS WROUGHT A PROFOUND DESPAIR AND A STRONG DETERMINATION TO SUCCEED BY JOHN R EMSHWILLER LOS ANGELES THE SUN LAST SHONE INTO WILLIAM FAULKNER'S DENTAL OFFICE IN APRIL THEN THIS CITY ERUPTED IN SOME OF THE WORST RIOTING IN THE NATION'S HISTORY DURING THE UNREST DR FAULKNER WHO IS BLACK COVERED THE WINDOWS OF HIS OFFICE WITH HEAVY PLYWOOD HE PLUGGED THE ROOF DRAINS OF HIS OFFICE WITH RAGS AND USED GARDEN HOSES TO MAKE A SMALL LAKE TO QUENCH A RAIN OF REDHOT EMBERS FROM NEARBY BURNING BUILDINGS HE REFUSED HOWEVER TO SCRIBBLE BLACK OWNED ON THE FRONT OF HIS BUSINESS AS SOME OTHERS DID IT WOULD HAVE MADE ME FEEL LIKE A PARTNER IN ARMS WITH THE RIOTERS HE SAYS WHEN THE RAMPAGE ENDED HIS CLINIC WAS STILL STANDING BARELY LOOTERS HAD TAKEN AWAY MUCH OF HIS EQUIPMENT MANY SURROUNDING STORES WERE CHARRED RUBBLE TODAY THE PLYWOOD STILL COVERS THE WINDOWS GIVING HIS OFFICE THE APPEARANCE OF THE INSIDE OF A PACKING CRATE DR FAULKNER SAYS BUSINESS IS ONLY 20 OF WHAT IT WAS BEFORE THE UNREST MOREOVER DR FAULKNER SAYS HE SEES PLENTY OF SPARKS IN THE DEVASTATED COMMUNITY THAT COULD SET OFF A NEW ROUND OF RIOTING I'M NOT REALLY SURE IT IS OVER HE SAYS WHETHER OR NOT VIOLENCE BREAKS OUT AGAIN SOON IT IS CLEAR THAT THE STRUGGLE TO RECOVER FROM RIOTS IS FAR FROM OVER FOR DR FAULKNER AND HUNDREDS OF OTHER BLACK BUSINESS OWNERS AND INDEPENDENT PROFESSIONALS NEARLY A YEAR AFTER THE APRIL RIOTS BLACK BUSINESS OWNERS IN SOUTH CENTRAL LOS ANGELES REPORT STILL SEVERE BUT SOMETIMES CONFLICTING EFFECTS OF THE TRAUMATIC EVENT FOR SOME THE RIOTS HAVE PROMPTED AN EVEN STRONGER DETERMINATION TO SUCCEED AND MANY HAVE BENEFITED FROM A PROLIFERATION OF PROGRAMS DESIGNED TO SPUR ENTREPRENEURSHIP IN THE AREA BUT FOR OTHER BUSINESS OWNERS THE RIOTS HAVE WROUGHT A PROFOUND DESPAIR THAT WON'T GO AWAY ALTHOUGH OTHER ETHNIC BUSINESS GROUPS WERE ALSO HARD HIT WITH KOREANAMERICANS PROBABLY THE HARDEST HIT OF ALLBLACK ENTREPRENEURS HOLD A SPECIAL PLACE IN ANY EFFORTS TO BUILD SOMETHING BETTER OUT OF THE ASHES UNLESS THE COMMUNITY CAN FIND A WAY TO LIFT THESE OWNERS UP THE ECONOMIC LADDER THE CONDITIONS THAT HELPED FUEL LAST YEAR'S RIOTS WILL REMAIN TO MANY BLACKS THOUGH THE PROBLEM IS A FUNDAMENTAL ONE THAT BEGINS WITH A MINDSET THAT IS HARD TO BREAK TOO OFTEN WE ARE VIEWED AS SUPPLICANTS RATHER THAN TALENTED BUSINESS PEOPLE SAYS ERROL SMITH COOWNER OF A FIRM THAT BROKERS COMMERCIALCLEANING CONTRACTS MR SMITH WHO HAS BEEN HELPING ORGANIZE MEETINGS OF MINORITYGROUP BUSINESS OWNERS AND ASIAN BANKERS OFFERS A VIVID ILLUSTRATION OF THAT ATTITUDE HE TELLS OF AN ASIAN BANKER WHO WANTED TO MEET HISPANIC BUSINESSMEN BECAUSE THEY WERE POTENTIALLY VALUABLE BANKING CUSTOMERS WHILE THE MAIN REASON HE WANTED TO MEET BLACKS WAS TO SATISFY FEDERAL DEMANDS TO DO MORE MINORITY LENDING AGAINST SUCH A BACKDROP BLACK BUSINESS OWNERS SAY THE RIOTS ADDED TO A SENSE OF DESPONDENCY WILLIAM HOLBERT WHO HAS OPERATED MEL'S KITCHEN A SOULFOOD RESTAURANT IN THE SOUTH CENTRAL DISTRICT FOR THE PAST 30 YEARS KNOWS THE DESPAIR HIS RESTAURANT IS AN UNPRETENTIOUS PLACE OF PLASTIC AND METAL FURNITURE THOUGH IT DOES HAVE A READING TABLE WHERE A DINER CAN PICK UP A COPY OF FORBES MAGAZINE TO BROWSE THROUGH WHILE MUNCHING FRIED CHICKEN COLLARD GREENS AND CORN MUFFINS MEL'S MADE IT THROUGH THE 1965 WATTS RIOT WITHOUT A SCRATCH BUT IN APRIL LOOTERS BROKE IN AND TOOK ALL THE FOOD AND MUCH EQUIPMENT SAYS MR HOLBERT THEY TRIED TO TORCH THE PLACE BUT NEIGHBORS PUT OUT THE FLAMES FOR MONTHS AFTER THE RIOTS MEL'S HOURS HAVE BEEN IRREGULAR AS MR HOLBERT AND HIS FAMILY STRUGGLE TO RECOVER PHYSICALLY AND EMOTIONALLY FROM THE TRAUMA MENTALLY THIS HAS BEEN VERY VERY VERY TOUGH SAYS MR HOLBERT YOU WANT TO TRY BUT SOMETIMES IT SEEMS SO OVERWHELMING TO KEEP ON GOING NONETHELESS THE 58YEAROLD MR HOLBERT VOWS THAT HE WILL AFTER THE RIOTS HE PUT UP A PLYWOOD SIGN AGAINST THE OUTSIDE OF HIS RESTAURANT THAT BORE A HANDSCRAWLED TESTAMENT TO THAT DETERMINATION LET US REBUILD OUR COMMUNITY LET US FORGIVE ONE ANOTHER BECAUSE WE ALL HAVE FAULTS UNLIKE MR HOLBERT CHUCK STOKES WASN'T A TARGET OF THE RIOTERS BUT HE WAS A VICTIM THE 61YEAROLD MR STOKES SAYS THAT TRAFFIC WAS SO SNARLED BY THE RIOTING THAT HIS TRACTORTRAILER TRUCK HAD TO BE LEFT AT A GAS STATION IN SOUTH CENTRAL OVERNIGHT UNFORTUNATELY THAT GAS STATION WAS BURNED DOWN AND HIS RIG WITH IT HE ALSO LOST HIS PICKUP TRUCK HE SAYS WHEN HE PARKED IT IN IN BACK OF A STORE THAT WAS BURNED DOWN MR STOKES APPLIED FOR A 55000 FEDERAL DISASTERASSISTANCE LOAN BUT WAS TURNED DOWN THEY SAID I DIDN'T HAVE ENOUGH CREDIT OR COLLATERAL SAYS MR STOKES I HAVE TO TRY TO DO SOMETHING ELSE BUT TO TELL YOU THE TRUTH I DON'T KNOW WHAT IT IS ROD DAVIS SAW WHAT HE HAD TO DO AND RELUCTANTLY DID IT MR DAVIS SPENT A DECADE BUILDING UP HIS FIRESTONE TIRE DEALERSHIP IN THE SOUTH CENTRAL AREA HE SAW IT LOOTED AND BURNED TO THE GROUND UNLIKE MANY ENTREPRENEURS HIT BY THE RIOTERS MR DAVIS IS BACK IN OPERATIONBUT AT A FIRESTONE DEALERSHIP HE BOUGHT WITH HIS INSURANCE MONEY IN A MORE AFFLUENT PART OF TOWN SEVERAL MILES AWAY WHILE HIS HEART REMAINS IN SOUTH CENTRAL THE COSTS AND DANGERS OF REBUILDING THERE WERE TOO GREAT HE SAYS MANY BLACK ENTREPRENEURS UNTOUCHED BY THE VIOLENCE ITSELF SAY THEY ARE SUFFERING THE RIPPLE EFFECTS RON WILLOUGHBY A BLACK ATTORNEY SAYS HE LOST THREE CLIENTS WHEN THEIR UNINSURED BUSINESSES WERE BURNED OUT OF EXISTENCE ACCOUNTANT ELAINE GASPARD SAYS SHE USED TO GET SEVERAL NEW CUSTOMERS A MONTH FROM AROUND THE CITY THROUGH THE YELLOW PAGES SINCE THE RIOTS SHE HAS RECEIVED VERY LITTLE BUSINESS SHE FIGURES PEOPLE ARE AFRAID TO COME TO HER OFFICE IN SOUTH CENTRAL DANIEL LAMAUTE A FINANCIAL CONSULTANT SAYS TWO OF HIS CLIENTS HAVE GONE INTO BANKRUPTCY LARGELY BECAUSE OF THE RIOTS HE WORRIES THAT OTHERS MAY FOLLOW A LOT OF PEOPLE HAVE LOST THEIR FIGHTING SPIRIT SAYS MR LAMAUTE FORTUNATELY THOUGH A LOT OF PEOPLE HAVEN'T IT SEEMS THAT FOR MANY BLACKS THE TRAUMAS OF APRIL HAVE ONLY FED THEIR WILL TO OVERCOME THE OBSTACLES TWO OF THE MOST DETERMINED AND LEAST LIKELY CANDIDATES ARE TONY BOGARD AND TYRONE BAKER FOR MUCH OF THEIR LIVES THE TWO WERE SOCIETY OUTCASTS AND DEADLY ENEMIES MEMBERS OF RIVAL BLACK GANGS MR BOGARD A CRIP MR BAKER A BLOOD BOTH HAVE CRIMINAL RECORDS AND NEITHER IS A STRANGER TO VIOLENCE MR BOGARD STILL LIMPS FROM BEING SHOT SEVERAL TIMES IN 1991 YET EARLIER THIS YEAR THE TWO MEN HELPED ORGANIZE A TRUCE BETWEEN THE BLOODS AND CRIPS AND JOINED WITH SEVERAL OTHERS TO START BUSINESSES AROUND SOUTH CENTRAL TO EMPLOY GANG MEMBERS IN A STORY LAST JUNE THIS NEWSPAPER CHRONICLED THE BEGINNINGS OF THAT EFFORT THE TRUCE IS STILL ALIVE AS ARE THE YOUNG MEN'S ENTREPRENEURIAL DREAMS A LINE OF GANGTRUCE TSHIRTS IS BEING PRODUCED THEY ARE LOOKING AT STARTING A PAPERRECYCLING AND MANUFACTURING OPERATION IN SOUTH CENTRAL AS WELL AS A MARKET AND RESTAURANT I'M NOT GOING TO LET THIS GET AWAY SAYS MR BOGARD OF HIS BUSINESS AMBITIONS MR BOGARD AND MR BAKER HAVE SUPPORTERS EVEN AMONG PEOPLE WHO DON'T KNOW THEM IF SOUTH CENTRAL IS TO SIGNIFICANTLY IMPROVE AS A PLACE TO LIVE AND DO BUSINESS WE HAVE TO GIVE GANG MEMBERS SOMETHING TO DO BESIDES DRUGS AND CARJACKINGS SAYS FRANK HOLOMAN OWNER OF THE BLVD CAFE A COMMUNITY GATHERING SPOT FOR BLACKS IN SOUTH CENTRAL MR HOLOMAN IS NO STRANGER TO THE DANGERS OF HIS COMMUNITY HE STILL CARRIES BUCKSHOT IN HIS LEFT LEG AND BACKSIDE FROM A SHOTGUN BLAST DURING A ROBBERY ATTEMPT OUTSIDE HIS HOME IN 1991 DURING THE RIOTS HE CAMPED EACH NIGHT AT HIS RESTAURANT WITH A GUN AND A DOG IT WAS A ROTTWEILER ABOUT MY SIZE BUT UGLIER HE SAYS NO ONE DARED ENTER MUCH EMPHASIS IS BEING PLACED WITHIN THE BLACK COMMUNITY ON FOSTERING ENTREPRENEURSHIP IN POSTRIOT LA AFRICANAMERICANS ARE SICK AND TIRED OF BEING JUST CUSTOMERS AND BEGGING OTHERS FOR JOBS SAYS JOHN MACK PRESIDENT OF THE LOS ANGELES URBAN LEAGUE MORE THAN HALF A DOZEN NEW ENTREPRENEURIAL TRAINING MENTORING OR FINANCING PROGRAMS HAVE SPRUNG UP OR ARE ON THE DRAWING BOARDS FOR INSTANCE WALT DISNEY CO DONATED 1 MILLION TO THE FIRST AMERICAN METHODIST EPISCOPAL CHURCH FOR A PROGRAM THAT OFFERS BUSINESS LOANS OF UP TO 20000 TO PEOPLE WHO COMPLETE A TRAINING PROGRAM MORE THAN 200 PEOPLE ALMOST ALL OF THEM BLACK ATTENDED A RECENT TRAINING SESSION THIS IS MY CHANCE TO GET OFF WELFARE SAID PAMELA BROWN SITTING IN ONE OF THREE PACKED MEETING ROOMS SHE SAYS SHE HOPES TO BORROW BETWEEN 10000 AND 20000 TO HELP START A CLOTHING STORE FOR SOME BLACK ENTREPRENEURS THE UNREST HAS ACTUALLY PRODUCED BUSINESS BLACKOWNED CONTRACTING FIRMS HAVE BEEN GETTING CLEANUP AND RECONSTRUCTION WORK THANKS AT LEAST PARTLY TO JOBSITE PICKETING AND OTHER PRESSURE TACTICS BY BLACKACTIVIST GROUPS IF IT HADN'T BEEN FOR THE RIOTS WE WOULD BE DOING NOTHING BUT ROOM ADDITIONS SAYS AL WILLIAMS PRESIDENT OF UNITED MINORITY CONTRACTORS A TRADE GROUP PATSY BROWN SAYS SHE INITIALLY THOUGHT THE RIOT WAS GOING TO BE THE TURNAROUND EVENT FOR HER SMALL BUSINESS FOR EIGHT YEARS MS BROWN HAS BEEN OPERATING PAPA'S MARKET A SMALL UPSCALE GROCERY STORE IN SOUTH CENTRAL BREAKING EVEN WAS STILL A DREAM WHEN APRIL 29 ROLLED AROUND PAPA'S WAS UNTOUCHED BY THE VIOLENCE BUT SEVERAL GROCERY STORES IN THE AREA WERE DAMAGED AND CLOSED ON APRIL 30 WE HAD LINES OF PEOPLE WRAPPED AROUND THE CORNER SAYS MS BROWN WHO ADDS THAT DEMAND KEPT UP FOR MORE THAN A WEEK I THOUGHT WE WERE FINALLY OVER THE HUMP BUT WHEN SOME OF THE OTHER STORES REOPENED PARTICULARLY A LARGE SUPERMARKET BUSINESS FELL OFF MS BROWN ISN'T DISCOURAGED SHE IS CUTTING PRICES REDUCING STAFF AND DRAWING UP PLANS TO OPEN TWO NEW PAPA'S STORES I WANT TO HELP OVERCOME THE MYTH THAT BLACKS WON'T SHOP WITH BLACKS SHE SAYS UNFORTUNATELY BLACK BUSINESS LEADERS SAY IT ISN'T ALL A MYTH THE FEW BLACKOWNED FINANCIAL INSTITUTIONS IN TOWN SAY THEY HAVE HAD TO STRUGGLE FOR YEARS TO GET BLACK DEPOSITORS THERE IS AN OLD SAYING IN OUR COMMUNITY THAT THE WHITE MAN'S ICE IS COLDER' SAYS JOHN KELLY PRESIDENT OF FOUNDERS NATIONAL BANK THE ONLY BLACKOWNED BANK IN LOS ANGELES HOWEVER THE RIOTS HAVE GIVEN A BOOST TO EFFORTS TO CHANGE THAT SELFIMAGE FOUNDERS AND OTHER BLACK FINANCIAL INSTITUTIONS FOR INSTANCE HAVE LAUNCHED A DRIVE THAT HAS BROUGHT IN SEVERAL MILLION DOLLARS IN ADDITIONAL DEPOSITS FROM THE BLACK COMMUNITY AND FOUNDERS RECENTLY RECEIVED COMMITMENTS FROM ATLANTIC RICHFIELD CO AND BANK OF AMERICA FOR EQUITY INVESTMENTS IN THE BANK VARIOUS EFFORTS ARE UNDER WAY TO ENCOURAGE BLACK SHOPPERS TO BUY FROM BLACKOWNED STORES THE GREATER LOS ANGELES BLACK BUSINESS DIRECTORY A SORT OF YELLOW PAGES OF BLACKOWNED FIRMS HAS SIGNED UP 6000 BUSINESSES FOR THIS YEAR'S ISSUE 20 MORE THAN LAST YEAR'S SAYS MUHAMMAD NASSARDEEN PRESIDENT OF RECYCLING BLACK DOLLARS WHICH PUBLISHES THE DIRECTORY AFTER WATTS IN 1965 WE DIDN'T DO WHAT WE NEEDED TO DO WITHIN THE BLACK COMMUNITY SAYS ROSIE MILLIGAN A BUSINESS CONSULTANT THIS TIME I SEE A MUCH GREATER AWARENESS THAT NOTHING IS GOING TO CHANGE UNLESS WE DO IT OURSELVES MR EMSHWILLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9302190004 930219 BUSINESS BRIEF DOMINION BANKSHARES CORP FOURTHPERIOD LOSS IS POSTED AFTER RESTRUCTURING CHARGE DOMINION BANKSHARES CORP ROANOKE VA REPORTED A FOURTHQUARTER LOSS AFTER TAKING A RESTRUCTURING CHARGE FOR A PENDING MERGER WITH FIRST UNION CORP FOR THE QUARTER THE BANKING COMPANY REPORTED A LOSS OF 675 MILLION OR 175 A SHARE COMPARED WITH NET INCOME OF 24 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER DOMINION RECORDED A CHARGE OF 657 MILLION OR ABOUT 170 A SHARE IN THE FOURTH QUARTER AS PART OF THE FORMAL MERGER AGREEMENT WITH FIRST UNION THE MERGER ANNOUNCED LAST SEPTEMBER IS EXPECTED TO BE COMPLETED BY MARCH 31 FOR THE YEAR DOMINION REPORTED A LOSS OF 1033 MILLION OR 270 A SHARE COMPARED WITH PROFIT OF 206 MILLION OR 50 CENTS A SHARE IN THE PREVIOUS YEAR DOMINION HAS 881 BILLION IN ASSETS COMPARED WITH 971 BILLION ONE YEAR AGO 9302190003 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT BUSINESS PLAN DATA GAP WHEN IT COMES TO UNDERSTANDING BLACK CONSUMERS MOST COMPANIES ARE SURPRISINGLY IGNORANT BY CAROLYN PHILLIPS WHAT MARKETERS DON'T KNOW ABOUT BLACK CONSUMERS COULD FILL VOLUMES AND FINALLY IT'S BEGINNING TO INSIDE GIANT CONSUMERPRODUCTS COMPANIES AT MARKETRESEARCH FIRMS ON UNIVERSITY CAMPUSES AND IN BLACKORIENTED MEDIA THE EFFORT TO GATHER INFORMATION ON AFRICANAMERICAN CONSUMERS IS TAKING OFF SPURRED BY A GROWING RECOGNITION OF THE IMPORTANCE OF THIS 270 BILLIONAYEAR MARKET AS WELL AS BY RECENT MISSTEPS ON THE PART OF THOSE WHO FAILED TO READ IT CORRECTLY RESEARCHERS ARE LOOKING FAR BEYOND THE SOMETIMES MEAGER INHOUSE REPORTS THAT FOR DECADES WERE VIRTUALLY THE ONLY INTELLIGENCE THERE WAS ON THE SUBJECT THE RESULT IS THAT GAPS IN US MARKETING DATA ARE BEING FILLED WITH THE KIND OF HARD EVIDENCE IT TAKES TO SWAY ADVERTISERS PRODUCT DEVELOPERS AND BANKERS COMPANIES ARE BEGINNING TO RECOGNIZE THAT AMERICA IS TURNING BROWN SAYS LAFAYETTE JONES THE PRESIDENT OF SEGMENTED MARKETING SYSTEMS INC IN WINSTONSALEM NC HE SEES THE 1990 US CENSUS AS A WAKEUP CALL TO CORPORATE AMERICA SHOWING AS IT DID THAT NONWHITE PORTIONS OF THE POPULATION ARE THE FASTEST GROWING HOWEVER HE ADDS WHEN MOST EXECUTIVES PONDER THIS ENORMOUS MARKET THE FIRST THING THEY UNDERSTAND IS THAT THEY DON'T KNOW ANYTHING ABOUT IT LAST SUMMER FOR EXAMPLE AMERICAN SPORTS DATA INC A RESEARCH CONCERN IN HARTSDALE NY REPORTED THAT ITS STUDIES INDICATE THAT RACIAL STEREOTYPES MAY BE CLOUDING KEY MARKETING TARGETS FROM THE VIEW OF SPORTINGGOODS COMPANIES THE WORK DEMONSTRATED THAT BLACKS ARE PARTICIPATING IN SUCH ACTIVITIES AS TENNIS AND RUNNING TO A FAR GREATER EXTENT THAN IS SUGGESTED BY THE CONVENTIONAL WISDOM HARVEY LAUER THE PRESIDENT OF AMERICAN SPORTS DATA ALSO POINTS OUT THAT THE INDUSTRY'S NOTION THAT BLACKS ACCOUNT FOR A HUGELY DISPROPORTIONATE SHARE OF THE ATHLETICFOOTWEAR MARKET IS A MYTH IN 1991 HE NOTES BLACKS PURCHASED 122 OF THE 342 MILLION PAIRS OF ATHLETIC SHOES IN THE US COMPARED WITH THEIR 121 REPRESENTATION IN THE POPULATION RESEARCH BY THE WELLINGTON GROUP AN OAKLYN NJ MARKETRESEARCH FIRM SHOWED PROCTER & GAMBLE CO THAT WHILE ITS CREST BRAND TOOTHPASTE MAY BE NO 1 OVERALL IT LOSES OUT AMONG BLACK CONSUMERS TO COLGATEPALMOLIVE CO'S COLGATE BRAND WORKING WITH AN ADVERTISING AGENCY HIRED BY CHRYSLER CORP WELLINGTON ALSO LEARNED THAT WHITE CONSUMERS WERE TYPICALLY SOLD ON PERFORMANCE AND QUALITY WHEN SHOPPING FOR A CAR WHILE BLACK BUYERS WERE MORE COMMITTED TO STYLE AND AMERICANMADE MODELS IN SOME CASES THE DISTINCTIONS ARE MORE SUBTLE IT'S NOT SIMPLY THAT WE USE DIFFERENT PRODUCTS OBSERVES EUGENE MORRIS THE PRESIDENT OF THE CHICAGOBASED AD AGENCY E MORRIS LTD SOMETIMES WE USE THE SAME PRODUCT IN A DIFFERENT WAY MR MORRIS CITES A SURVEY THAT NESTLE SA'S CARNATION DIVISION CONDUCTED TO FIND OUT ABOUT BUYERS OF ITS INSTANT BREAKFAST THE RESULTS HE SAYS REVEALED THAT IN CERTAIN AREAS THERE IS A HIGH INCIDENCE OF BLACK USAGE EVEN THOUGH AFRICANAMERICANS ARE NOT PARTICULARLY DIET CONSCIOUS AND DON'T EMBRACE THOSE PRODUCTS TO THE SAME DEGREE AS THE GENERAL POPULATION IT TURNED OUT THAT THE PRODUCT IS BEING USED NOT AS A BREAKFAST SUBSTITUTE BUT AS A BREAKFAST SUPPLEMENT AS SUCH INFORMATION BECOMES AVAILABLE MORE COMPANIES ARE JUMPING ON THE BANDWAGON TIGHT ECONOMIC TIMES HAVE FORCED THEM TO SAY HEY WHAT ABOUT THIS BLACK MARKET THING' SAYS KEN SMIKLE WHO PUBLISHES A MONTHLY TRADE NEWSLETTER IN CHICAGO CALLED TARGET MARKET NEWS LOOK AT THE LEADING COMPANIES IN ANY CATEGORY AND ASK ARE THEY INVOLVED IN AGGRESSIVELY MARKETING TO AFRICANAMERICAN CONSUMERS' HE INSTRUCTS THEN DOES THE DRILL HIMSELF FAST FOOD MCDONALD'S YES SOFT DRINKS COCACOLA YES IN FACT COCACOLA CO IS SOMEWHAT UNUSUAL IN THAT IT HAS BEEN RESEARCHING BLACK CONSUMER TASTES FOR MORE THAN 30 YEARS AND IT HAS TAKEN THE FINDINGS TO HEART AFTER A STUDY BY MR MORRIS'S AGENCY DISCOVERED THAT AFRICANAMERICANS TYPICALLY PREFER LARGER SERVINGS OF SOFT DRINKS COKE BEGAN USING 16OUNCE CONTAINERS INSTEAD OF THE 12OUNCE SIZE IN ADS DIRECTED TOWARD BLACKS WE WERE VITALLY INTERESTED IN THE BLACK CONSUMER MARKET AT COCACOLA SAYS CHARLES MORRISON A FORMER COKE EXECUTIVE WHOSE YEAROLD MANAGEMENT CONSULTING FIRM IN ATLANTA SPECIALIZES IN ETHNIC MARKETING SOME COMPANIES THOUGH HAVE BEEN MUCH LESS CAREFUL IN THEIR ATTENTION APART FROM THE OBVIOUS INCENTIVES OF COMPETITION AND THE MARKET'S SIZE THE NEED FOR MORE AND BETTER INSIGHT INTO MINORITY CONSUMERS HAS BECOME APPARENT AFTER SEVERAL RECENT CORPORATE EMBARRASSMENTS A LOT OF COMPANIES HIT SOME LAND MINES SAYS JEROME WILLIAMS AN ASSISTANT PROFESSOR OF MARKETING AT PENNSYLVANIA STATE UNIVERSITY HE RECALLS THE NEGATIVE PUBLICITY AND THE OUTRAGE IN THE BLACK COMMUNITY OVER ATTEMPTS BY G HEILEMAN BREWING CO AND RJR NABISCO INC TO LAUNCH POWERMASTER MALT LIQUOR AND UPTOWN CIGARETTES RESPECTIVELY ULTIMATELY HE SAYS THESE FIRMS REALIZED YOU JUST CAN'T RUSH INTO THESE THINGS WITHOUT DOING THE RIGHT KIND OF HOMEWORK AND THEN LEARNING HOW TO APPLY THE FINDINGS IN THE APPROPRIATE WAY HEILEMAN OFFICIALS DECLINE TO COMMENT ON THE ATTEMPTS TO MARKET POWERMASTER RJR WHICH ACKNOWLEDGES TARGETING BLACK CONSUMERS NEVER LAUNCHED UPTOWN MAURA PAYNE A COMPANY SPOKESWOMAN SAYS THE FAILURE WASN'T A QUESTION OF NOT HAVING ADEQUATE RESEARCH OR NOT INTERPRETING IT PROPERLY OUR PROBLEM CAME FROM THE ANTISMOKING COMMUNITY FOR THE MOST PART HOWEVER PEOPLE DOING THE RESEARCH DON'T ALWAYS KNOW WHAT THEY'RE DOING SAYS MR MORRIS THE ADVERTISING EXECUTIVE OFTEN IT'S LANGUAGE THAT GETS IN THE WAY ONE LARGE ADVERTISING AGENCY WAS RELYING ON RESEARCH IT THOUGHT SHOWED THAT A LOT OF BLACK PEOPLE READ TV GUIDE MR MORRIS RECALLS WHEN IN FACT BLACK RESPONDENTS WERE SAYING THAT THEY LOOKED AT TELEVISION LISTINGS OF ALL SORTS AND IT'S NOT JUST TERMINOLOGY HE EXPLAINS IF YOU DON'T UNDERSTAND THE BODY LANGUAGE AND ALL THOSE THINGS IT'S EASY TO MISS SOMETHING EVEN IN MAINSTREAM ADVERTISING COMPANIES HAVE FOUND THAT THERE IS MUCH TO ASCERTAIN ABOUT WHAT DOESN'T WORK FOR BLACK CONSUMERS MR WILLIAMS OF PENN STATE REFERS FOR INSTANCE TO AN AD FOR THE BENETTON CLOTHING CHAIN THAT SHOWED A BLACK HAND AND A WHITE HAND HANDCUFFED TOGETHER THE IMAGE WAS INTENDED TO CONVEY THE IDEA OF RACIAL HARMONY BUT THE REACTIONS FROM BLACKS WHO SAW IT WERE VERY NEGATIVE THEY SAW A WHITE POLICE OFFICER LOCKING UP A BLACK CRIMINAL SAYS MR WILLIAMS THEY SAW CHAINS SHACKLES BONDAGE ALTHOUGH WORK DONE BY SMALLER FIRMS HAS OFTEN BEEN TAGGED AS ASTERISK RESEARCH MEANING THAT THE SAMPLE SIZES AND METHODOLOGY ARE CONSIDERED INADEQUATE FOR PRODUCING ACCURATE REPRESENTATIVE RESULTS THE BIG COMPANIES THAT DOMINATE MARKET RESEARCH HAVE BEEN SLOW TO TACKLE THE SUBJECT THIS IS PARTLY BECAUSE THEY TEND TO WAIT FOR THEIR CLIENTS TO REQUEST SPECIFIC TYPES OF RESEARCH IT'S AN ISSUE OF SUPPLY AND DEMAND EXPLAINS ANNA FOUNTAS PRESIDENT OF THE SYNDICATED RESEARCH DIVISION OF GIANT SIMMONS MARKET RESEARCH BUREAU INC IN NEW YORK MS FOUNTAS SAYS THAT WHILE SIMMONS HAS IN CERTAIN CASES DONE CUSTOMIZED RESEARCH ON BLACK CONSUMERS HER OWN DIVISION WHICH PRODUCES REPORTS FOR BROAD DISTRIBUTION HAS NEVER DONE A STUDY IN WHICH THE SAMPLE POPULATION HAS BEEN ENTIRELY BLACK A SECOND MAJOR FACTOR IN THE BIG FIRMS' TARDINESS IS THAT STUDYING THE BLACK CONSUMER MARKET REQUIRES A NEW APPROACH WITH DIFFERENT SAMPLE STRUCTURES AND DIFFERENT QUESTIONS AND MARKETING EXECUTIVES ARGUES MR MORRISON THE CONSULTANT ARE CREATURES OF HABIT TRADITIONAL RESEARCH FIRMS HAVE BEEN HAMPERED BY METHODOLOGY AND RESEARCHGATHERING TECHNIQUES THAT HAVEN'T RECOGNIZED DIVERSITY SAYS DEBRA JOHNSONHALL PRESIDENT OF JOHNSON & ASSOCIATES MARKETING INC IN CHICAGO FOR ONE THING SHE NOTES SUCH FIRMS HAVE RELIED TOO HEAVILY ON PHONE SAMPLING AND MAIL SURVEYS TACTICS THAT USUALLY FAIL TO YIELD A REPRESENTATIVE CROSSSECTION OF BLACKS AL WELLINGTON THE HEAD OF THE WELLINGTON GROUP AGREES RANDOMDIGIT DIALING TECHNIQUES SIMPLY DON'T WORK BLACKS ARE NOT RANDOMLY DISTRIBUTED WE'RE CLUSTERED RANDOM DIALING HE EXPLAINS TYPICALLY YIELDS A SAMPLE THAT'S ONLY 6 TO 8 BLACK ROUGHLY HALF THE LEVEL OF BLACK REPRESENTATION IN THE GENERAL POPULATION AND THE BLACKS WHO DO WIND UP BEING CONTACTED HE ADDS TEND TO HAVE VALUES MORE IN LINE WITH THOSE OF SUBURBAN RESIDENTS ANOTHER PROBLEM WITH PHONE POLLING IS MORE INTRACTABLE PARTICULARLY IN URBAN AREAS RESEARCHERS CALLING TO GATHER SURVEY DATA COMMONLY RUN INTO THE SAME OBSTACLE ENCOUNTERED BY CENSUS TAKERS SUSPICION ABOUT THOSE SEEKING PERSONAL INFORMATION THUS YOU HAVE PEOPLE WHO GO HOUSE TO HOUSE MR MORRIS SAYS BUT THIS ISN'T ALWAYS A WORKABLE OPTION IN SUCH AREAS AS THE INNER CITY MY OFFICE IS ABOUT A MILE FROM THE CABRINIGREEN HOUSING PROJECTS THERE'S NO WAY YOU CAN TELL ME THAT THE AVERAGE DEMOGRAPHER IS GOING HOUSE TO HOUSE IN CABRINIGREEN NOBODY IS TALKING TO THOSE PEOPLE A NUMBER OF RESEARCHERS ADVOCATE SOCALLED INTERCEPT STRATEGIES FOR REACHING BLACK CONSUMERS THESE TECHNIQUES INVOLVE QUESTIONING SUBJECTS AT SCHOOLS CHURCHES RECREATION CENTERS OR EVEN ON THE STREET IN 1990 DELOITTE & TOUCHE ONE OF THE NATION'S LARGEST ACCOUNTING FIRMS TEAMED UP WITH IMPACT RESOURCES INC A COLUMBUS OHIO MARKETRESEARCH COMPANY TO DO JUST THAT RESEARCHERS SET UP TABLES IN MALLS AND RETAIL CENTERS AND TALKED TO TENS OF THOUSANDS OF CONSUMERS MAKING SURE TO TAP RACIAL MINORITIES IN PROPORTION TO THE GENERAL POPULATION WHEN IT COMES TO INTERPRETING THE DATA FROM SUCH EFFORTS CHRISTINE DONOVAN A RESEARCH ASSOCIATE AT DELOITTE IN NEW YORK SAYS SHE WORKS CLOSELY WITH MARKETING SPECIALISTS FROM THE BLACK WOMEN'S MAGAZINE ESSENCE A BLACK TRAVEL GROUP AND OTHERS THE WORK HAS DRAWN NOTICE IN THE BUSINESS WORLD STUART CRANE AN IMPACT RESOURCES VICE PRESIDENT SAYS THAT WHILE CUSTOMERS FOR THE COMPANY'S GENERALMARKET STUDIES ARE USUALLY MEDIA CONCERNS USING THE DATA TO SELL ADS REQUESTS FOR THE BLACKCONSUMER STUDY COME MORE FROM CONSUMERPRODUCTS MANUFACTURERS AND RETAILERS AS MR SMIKLE THE NEWSLETTER PUBLISHER POINTS OUT IF THERE'S NO RESEARCH EVEN AN AFRICANAMERICAN MARKETING EXECUTIVE IS ILL EQUIPPED TO MAKE THE ARGUMENT AS TO HOW AND WHY A COMPANY OUGHT TO MARKET TO BLACK CONSUMERS MS PHILLIPS IS THE CHIEF OF THE WALL STREET JOURNAL'S HOUSTON BUREAU OVERALL THE AVERAGE BLACK HOUSEHOLD SPENDS 1913044 EACH YEAR ON CONSUMER GOODS 35 LESS THAN THE 2954692 SPENT BY THE AVERAGE NONBLACK HOUSEHOLD BUT BLACK CONSUMERS SPEND MORE THAN WHITE CONSUMERS ON A VARIETY OF PRODUCTS HERE ARE SOME 9302190002 930219 TRACKING TRAVEL BY JONATHAN DAHL THE HOTEL INDUSTRY MAY BE COMING OUT OF ITS WORST SLUMP IN DECADES INDUSTRY FIGURES SHOW DEMAND HAS RISEN AND CONSTRUCTION SLOWED GIVING THE INDUSTRY A CHANCE TO WORK OFF A ROOM GLUT LEFT FROM YEARS OF OVERBUILDING BUT CONSUMERS WHO HAD TO ENDURE POOR SERVICE AND SHODDY ROOMS AT SOME CHAINS DURING THE SLUMP MAY NOW FACE HIGHER PRICES FOR THE FIRST TIME IN MANY YEARS IMPROVEMENT IN THE LODGING INDUSTRY THESE DAYS IS MEASURED IN SMALL STEPS OCCUPANCY RATES ROSE 15 PERCENTAGE POINTS LAST YEAR THE BIGGEST INCREASE SINCE AT LEAST THE 1970S TO 617 DEMAND ROSE 4 MEANING 70000 MORE ROOMS A NIGHT WERE OCCUPIED THERE'S NO QUESTION THE INDUSTRY IS REBOUNDING SAYS MARK LAMMONO EXECUTIVE DIRECTOR OF SMITH TRAVEL RESEARCH GALLATIN TENN A CONSULTING FIRM THAT COLLECTS INDUSTRY DATA SUBURBAN HOTELS ARE DOING THE BEST THEY SAW DEMAND RISE 58 IN 1992 BUDGET PROPERTIES PARTICULARLY THE MORE EXPENSIVE ECONOMY HOTELS WITH ROOM RATES OF ABOUT 40 A NIGHT HAD A 55 RISE IN DEMAND STILL AN AVERAGE OF NEARLY 40 OF ALL ROOMS IN THE COUNTRY ARE VACANT EACH NIGHT INDUSTRY OFFICIALS ALSO WORRY THAT BUSINESS TRAVELERS MAY NOT RETURN IN THE SAME NUMBERS AS DURING THE MID'80S BECAUSE OF EITHER CORPORATE LAYOFFS OR CUTBACKS IN TRAVEL BUDGETS WE'VE GONE FROM HORRIBLE TO MISERABLE TO JUST PLAIN MEDIOCRE AND WE CERTAINLY HAVEN'T ARRIVED AT THE CHICKENINEVERYPOT STAGE SAYS MARC YANOFSKY SENIOR VICE PRESIDENT OF MARKETING AT HYATT HOTELS FOR TRAVELERS THE PRICING TREND ISN'T ENCOURAGING ROOM RATES ROSE AN AVERAGE OF JUST 13 IN 1992 SMITH TRAVEL RESEARCH SAYS BUT SEVERAL BIG CHAINS INCLUDING SHERATON CHOICE INTERNATIONAL HOTELS AND HYATT SAY THEY WERE ABLE TO RAISE PRICES CLOSE TO THE RATE OF INFLATION FOR THE FIRST TIME SINCE THE LATE '80S IN SOME AREAS THE INCREASES WERE BIGGER AROUND NORFOLK VA ROOM RATES JUMPED AN AVERAGE OF 12 IN DECEMBER FROM A YEAR EARLIER IN DETROIT RATES ROSE 9 DOLLAR RENT A CAR SYSTEMS THINKS IT HAS AN ANSWER TO OVERBOOKING PROBLEMS IN THE CAR RENTAL INDUSTRY REQUIRING CUSTOMERS TO GUARANTEE RESERVATIONS WITH CREDIT CARDS THE LOS ANGELESBASED CHRYSLER UNIT SAYS IT IS CONSIDERING THE IDEA CONSUMERS STILL WOULD BE ABLE TO CANCEL RESERVATIONS AND NOT BE CHARGED IF THEY DO SO AT LEAST A FEW HOURS BEFORE THEIR PICKUP TIME MUCH AS IS THE CASE WITH HOTELS NOW WE'RE THE ONLY TRAVEL INDUSTRY THAT DOESN'T REQUIRE CREDITCARD GUARANTEES A DOLLAR SPOKESWOMAN SAYS ALL CAR RENTAL COMPANIES OVERBOOK WHICH IN THE PAST RARELY CAUSED PROBLEMS BECAUSE THE INDUSTRY HAD A SURPLUS OF CARS BUT IN RECENT MONTHS THE SURPLUS HAS TURNED INTO A SHORTAGE IN DECEMBER DOLLAR DIDN'T HAVE CARS TO FILL HUNDREDS OF RESERVATIONS IN FLORIDA THE DOLLAR SPOKESWOMAN SAYS REQUIRING CREDIT CARDS WOULD GUARANTEE PEOPLE CARS WE THINK CONSUMERS WANT THIS SHE SAYS BUT THAT ISN'T WHAT THE NATION'S LARGEST CAR RENTAL COMPANY THINKS IT'S A BAD IDEA A HERTZ SPOKESMAN SAYS RENTERS LIKE THE FLEXIBILITY OF THE CURRENT ARRANGEMENT HE SAYS AND WOULD REVOLT AT THE IDEA OF CREDITCARD GUARANTEES MOREOVER HE SAYS THE IDEA WOULD CREATE A RANGE OF OPERATIONAL PROBLEMS WHAT HAPPENS IF YOUR FLIGHT IS THREE HOURS LATE AND YOU DON'T MAKE THE CUTOFF FOR THE CANCELLATION AND WE'VE RENTED YOUR CAR HE ASKS IT WOULD NEVER WORK ONE OF THE NATION'S LARGEST HOTEL CHAINS PLANS TO TAILOR SOME ROOMS TO OLDER TRAVELERS MUCH AS HOTELS HAVE NOSMOKING ROOMS CHOICE HOTELS INTERNATIONAL WANTS TO SET ASIDE ROOMS FITTED WITH AMENITIES OF PARTICULAR USE TO OLDER CUSTOMERS THE MANOR CARE SUBSIDIARY PLANS TO TEST THE IDEA SOON AT A HANDFUL OF ITS RODEWAY INN LOCATIONS IF PEOPLE LIKE IT THE RODEWAY CHAIN COULD ALLOCATE 25 OF ITS ROOMS FOR OLDER TRAVELERS BY SEPTEMBER AFTER THAT THE REST OF CHOICE'S EMPIRE WHICH INCLUDES COMFORT INNS QUALITY AND FOUR OTHER FRANCHISE CHAINS WITH A TOTAL OF 2800 PROPERTIES COULD ADOPT THE CONCEPT THE ROOMS BEING TESTED WILL HAVE TELEPHONES AND TV REMOTE CONTROLS WITH LARGE BUTTONS AND NUMBERS WALL SWITCHES WILL HAVE FAINT LIGHTS SO GUESTS CAN FIND THEM EASILY AT NIGHT AND TO HELP PEOPLE WITH ARTHRITIS DOORS WILL HAVE LEVER HANDLES INSTEAD OF KNOBS THE TEST IS THAT YOU SHOULD BE ABLE TO OPEN EVERY DOOR AND EVERY DRAWER WITH YOUR FIST A CHOICE SPOKESWOMAN SAYS THE CHAIN SAYS IT WON'T CHARGE EXTRA FOR THE ROOMS AND WON'T LIMIT THEM TO ITS OLDER CLIENTELE THE COMPANY HOPES IN FACT THAT YOUNGER CUSTOMERS WILL LIKE THE AMENITIES WE CAN'T HAVE PEOPLE SAYING OH GOSH I GOT STUCK WITH THE SENIORCITIZEN ROOM' THE SPOKESWOMAN SAYS CHOICE HAS TARGETED OLDER TRAVELERS FOR SEVERAL YEARS WITH BIG DISCOUNTS AND IT RECENTLY LOWERED ITS MINIMUM AGE FOR THE DISCOUNTS TO 50 FROM 60 MORE THAN 30 OF ITS CUSTOMERS ARE 60 OR OVER AND THE COMPANY CALLS THEM ITS LARGEST AND FASTESTGROWING SEGMENT HOW MUCH SHOULD YOU TIP TAXI DRIVERS IN THE NETHERLANDS FINLAND SWITZERLAND AND SOME LATIN AMERICAN COUNTRIES NOTHING TRAVEL SMART A CONSUMER NEWSLETTER IN DOBBS FERRY NY SAYS TAXI DRIVERS IN THESE COUNTRIES USUALLY AREN'T TIPPED IN SOME ARAB NATIONS TAXI DRIVERS CUSTOMARILY WON'T ACCEPT TIPS BUT MAY DOUBLE THE FARE AT THE END OF YOUR RIDE BUSINESS LEADERS ARE PUSHING PRESIDENT CLINTON TO CUT TRAVEL TAXES ON DOMESTIC FLIGHTS PASSENGERS PAY A 10 FEDERAL TAX PLUS AS MUCH AS 12 MORE A ROUND TRIP IN STATE AND LOCAL AIRPORT TAXES THE NATIONAL BUSINESS TRAVEL ASSOCIATION REPRESENTING CORPORATE TRAVEL MANAGERS ESTIMATES IN A LETTER TO MR CLINTON THAT REDUCING THE DOMESTIC TAX TO 8 WOULD BOOST AIR TRAVEL BY 65 MILLION PASSENGERS A YEAR OR 16 9302190001 930219 REVIEW & OUTLOOK EDITORIAL THE CLINTONITES HAVE LANDED LET THE DIRT FLY LET'S REBUILD AMERICA REP NICK RAHALL D WVA WE'RE GLAD TO SEE THAT A DEMOCRATIC CONGRESSMAN FROM WEST VIRGINIA UNDERSTANDS CLINTONOMICS FOR OUR PART WE HAVEN'T A CLUE IN WHAT DRAWER OF WHICH ECONOMICS DEPARTMENT IS THERE A THEORY THAT SAYS HIGHER TAXES COUPLED TO A MORASS OF SPENDING PROPOSALS ADD UP TO ECONOMIC GROWTH PERHAPS WHAT WE HAVE HERE IS THE FLYING DIRT SCHOOL OF ECONOMICS BACK DURING THE PRESIDENTIAL CAMPAIGN ONE OF THE EARLY FEARS OF SUPPORTERS OF THE ERA NOW DERIDED AS THE LAST 12 YEARS WAS THAT CANDIDATE CLINTON SOUNDED SO MODERATE SO ORIENTED TOWARD ECONOMIC GROWTH AND SO CONTEMPORARY IN HIS THINKING THAT HE MIGHT ACTUALLY WIN AND HAVING WON HE WOULD USHER IN AN ERA OF INNOVATIVE GROWTHORIENTED DEMOCRATIC MODERATION THAT WOULD WIN THE LOYALTY OF THE AMERICAN ELECTORATE SUPPORTERS OF THE LAST 12 YEARS WOULD HAVE A HARD TIME RETURNING TO POWER AGAINST A GROWTHORIENTED DEMOCRATIC PARTY AFTER MR CLINTON'S VICTORY CONVERSATIONS WITH DEMOCRATIC THINKERS AND FINANCIAL TYPES WHO HAD NURTURED AND COUNSELED MR CLINTON ALONG THIS PATH AWAY FROM HIS PARTY'S MOST INTENSE LIBERALS AND TOWARD THE CENTER MADE SOME OF US WILLING TO AT LEAST WISH THE YOUNG ADMINISTRATION WELL IN PURSUIT OF THESE GOALS IT IS NOW PATENTLY CLEAR THAT THE GRIEVANCES AND ANIMOSITY THAT THESE YOUNG CLINTONITES HARBOR TOWARD RONALD REAGAN AND HIS ERA RUN TOO DEEP THERE WILL BE NO CONDOMINIUM WITH THE LAST 12 YEARS THERE IS VIRTUALLY NOTHING IN THE CLINTON AGENDA ANNOUNCED WEDNESDAY THAT IS HELD OVER FROM THE REAGAN POLITICAL LEGACY IT IS TO BE ERASED MR CLINTON'S SPOKESPERSON GEORGE STEPHANOPOULOS WHO NORMALLY DOESN'T HAVE MUCH DEFINITIVE TO SAY WHEN HE SPEAKS FOR THE PRESIDENT DID SAY THIS EARLIER IN THE WEEK WHAT YOU'RE GOING TO SEE IN THIS PACKAGE IS A REVERSAL OF REAGANOMICS A REVERSAL OF THE LAST 12 YEARS POLITICALLY THAT IS JUST FINE THE AMERICAN PEOPLE NOW HAVE BEFORE THEM A CLEAR CHOICE BETWEEN TWO WHOLLY INCOMPATIBLE THEORIES OF GOVERNMENT AS THE COUNTRY APPROACHES THE POLITICS AND ECONOMIES OF THE 21ST CENTURY IT IS ENTIRELY APPROPRIATE THAT WE SHOULD HAVE TO CHOOSE BETWEEN CLINTON DEMOCRATS AND REAGAN REPUBLICANS THE CLINTONITES LIKE POD PEOPLE FROM A STAR TREK ADVENTURE HAVE PEELED OFF THE THIN LAYER OF CENTRIST RHETORIC THAT THEY WORE FOR THE PRESIDENTIAL CAMPAIGN WE NOW LEARN THAT THEY ARE PEOPLE GENETICALLY BRED TO INHABIT THE PUBLIC SECTOR THEIR OXYGEN SOURCE IS THE MOISTURE OF TAXES WHICH ARE REMITTED BY THE ALIENS IN THE PRIVATE SECTOR WITH THESE TAXES THE NEW PRESIDENT INFORMED US THEY WILL INVEST IN HIGHSPEED RAIL MAGNETIC LEVITATION PROJECTS SEWER CONSTRUCTION WORKER RETRAINING RENEWABLE ENERGY RESEARCH HOUSING PROGRAMS AND EVEN TREE PLANTINGS AND BECAUSE GOVERNMENT WILL INVEST IN WHAT HAS BEEN NEGLECTED FOR 12 YEARS THE CLINTONITES PREDICT THE EMERGENCE OF EIGHT MILLION NEW JOBS MOST OF THESE NEW WORKERS WILL BE BORN WITH WHAT APPEAR TO BE HARD HATS GROWING OUT OF THEIR CRANIUMS ALSO IN THE WORLD OF THE CLINTONITES AS HIGHER LEVELS OF REVENUE FLOW INTO THE GOVERNMENT THE BUDGET DEFICIT WILL FALL WHICH WILL CAUSE INTEREST RATES TO FALL WHICH WILL MAKE HOMES CARS AND OTHER PURCHASES MORE AVAILABLE TO THE PRIVATESECTOR ALIENS THESE ARE CALLED INCENTIVES TO INVEST OF COURSE THE ALIENS UNABLE TO FATHOM THE LOGIC OF THE PUBLICSECTOR CLINTONITES IMMEDIATELY NOTICE THAT THEIR DISPOSABLE INCOME IS ALSO BEING SIPHONED OFF BY RISING BTU TAXES SURTAXES ALTERNATIVE MINIMUM TAXES AND ESTATE TAXES INDEED FOR SOME TAXPAYERS UNDER THIS PROPOSAL THE HIGHEST MARGINAL RATE ON PERSONAL INCOME WON'T BE MR CLINTON'S ANNOUNCED 36 IT WILL BE CLOSER TO 45 AFTER ADDING IN THE PHASEOUT OF DEDUCTIONS AND EXEMPTIONS AND EXTENSION OF THE MEDICARE PAYROLL TAX TO ALL INCOME STATE TAXES PUSH THE MARGINAL RATES HIGHER BUSINESS IS ALSO SUPPOSED TO BE ABLE TO BORROW MORE AND OF COURSE AFTER THE HIGHER CORPORATE RATES CAPTURE EARNINGS THAT OTHERWISE WOULD HAVE BEEN RETAINED BUSINESS WILL BE DRIVEN INTO THE BOND MARKETS TO BORROW BUT WHERE IN THIS DOES ONE FIND THE POWERFUL LEVERS THAT INDIVIDUALS CAN PULL TO RAISE THE ECONOMY MUCH LESS OFFER NEW JOBS THE REAGAN APPROACH WAS MORE DIRECT REAGANISM'S CORE IDEA WAS THAT LOWER TAXES AND LESS PUBLICSECTOR REGULATION WOULD MAXIMIZE INCENTIVES TO CREATE THE NEW BUSINESSES THAT THEMSELVES CREATE NEW JOBS THE INTERMEDIARY ROLE OF GOVERNMENT IN THIS ENTIRELY PRIVATE CAPITAL FORMATION PROCESS IS GREATLY REDUCED AGAIN IT'S NOW CLEAR THAT THE CLINTONITES WERE SEETHING WHILE REAGANITES PRESIDED OVER EIGHT MILLION NEW JOBS AND THE ERUPTION OF NEW EDGE CITIES NEW MIDDLECLASS HOUSING DEVELOPMENTS NEW SHOPPING MALLS NEW SCHOOL SYSTEMS NEW LEAGUES FOR KIDS' SOCCER FOOTBALL AND BASKETBALL ALL OVER AMERICA THE CLINTONITES BY THEIR OWN ADMISSION SAW NONE OF THIS IN THE '80S WHAT THEY SAW WHAT THAT THE REAGAN MOVEMENT WAS DELEGITIMIZING GOVERNMENT'S ROLE IN THE DEVELOPMENT OF AMERICAN SOCIETY HAVING PUT ON CENTRIST COSTUMES TO PULL OFF VICTORY IN THE ELECTION THEY'RE NOW BRINGING BACK GOVERNMENT WITH LITERALLY A VENGEANCE MR CLINTON SEEMED NEVER SO HAPPY WEDNESDAY NIGHT AS WHEN HE WAS ANNOUNCING HIS SPENDING PLANS AND NEARLY GOT MISTY DESCRIBING THE NATIONAL SERVICE LOAN PROGRAM WHETHER THE DEMOCRATS IN CONGRESS ARE UNIVERSALLY OPERATING OUT OF SUCH DEEP RESERVOIRS OF ANTIPATHY FOR EVERY JOT AND TITTLE OF THE RECENT ECONOMIC TRADITION REMAINS TO BE SEEN THOSE NEWLY ELECTED DEMOCRATS GO BEFORE THE VOTERS AGAIN NEXT YEAR THE POLITICS THAT MR CLINTON IS ASKING THEM TO ADOPT IS FOR ALL ITS PRESUMED POPULISM BLOODLESS AND REMARKABLY GRIM IT CLEARLY SUSTAINS THE CLINTONITES BUT CAN IT SUSTAIN ANYONE ELSE 9302190171 930127 RULE OF LAW CALIFORNIA MAKES LANDLORDS DO THE POLICE'S JOB BY GIDEON KANNER A COUPLE OF YEARS AGO WHEN POLICE EFFORTS TO CLEAN UP AREAS OVERRUN BY DRUG DEALERS PROVED FUTILE IN SPITE OF HUNDREDS OF ARRESTS THE CITY OF LOS ANGELES GOT THE COURTS TO ISSUE INJUNCTIONS REQUIRING LANDLORDS TO EVICT TENANTS SUSPECTED OF CRIMINAL ACTIVITY AND TO SURROUND THEIR BUILDINGS WITH 10FOOT LIGHTED AND GUARDED SECURITY FENCES SIMILARLY IN THE PAST YEAR LANDLORDS IN LONG BEACH HAVE BEEN THREATENED WITH SHUTDOWN OF THEIR BUILDINGS WITH THE COST OF TENANT RELOCATION TO BE BORNE BY THEM IF THEY FAILED TO CLEAN UP DRUG DEALING EVEN THOUGH THE CITY POLICE HAD FAILED TO DO SO SUCH THREATS ARE HARDLY IDLE IN THE VENICE BEACH AREA OF LOS ANGELES US MARSHALS LAST YEAR SEIZED A 16UNIT BUILDING OWNED BY HOLIDAY VENICE DEMANDING THAT THE LANDLORD INSTALL 24HOUR ARMED GUARDS AND CLEAN UP DRUG DEALING EVEN THOUGH 26 DRUGRELATED ARRESTS IN THE PRECEDING 18 MONTHS HAD FAILED TO SOLVE THE PROBLEM THESE CASES ARE TACITLY BASED ON THE DUBIOUS PREMISES THAT 1 A LANDLORD CAN CONTROL THE CRIMINAL CONDUCT OF PERSONS OUTSIDE HIS BUILDING AND 2 CAN EVICT TENANTS PROMPTLY IF THEY ARE SUSPECTED OF MISBEHAVIOR IN REALITY INVOKING THE AID OF CALIFORNIA COURTS TO EVICT A DETERMINED TENANT PARTICULARLY IN RENTCONTROLLED AREAS SUCH AS BERKELEY CAN BE A COSTLY AND PROLONGED PROCESS THIS PHENOMENON OF DUMPING RESPONSIBILITY FOR LAW ENFORCEMENT ONTO THE PRIVATE SECTOR HAS NOW TAKEN ANOTHER TURN LAST YEAR THE LOS ANGELES BOARD OF ZONING APPEALS ORDERED THE OWNERS OF A 711 STORE IN VAN NUYS TO REDUCE OPERATING HOURS HIRE GUARDS GET RID OF VIDEO GAME MACHINES AND STOP SELLING LIQUOR IN ORDER TO DISCOURAGE THE CRIMINAL ELEMENT FROM HANGING AROUND THE STORE NEEDLESS TO SAY COMPLIANCE WILL CUT INTO REVENUES AND IS TANTAMOUNT TO A FINE IMPOSED NOT ON THE CRIMINALS BUT ON A LAWABIDING BYSTANDER IN ANOTHER SUCH CASE LAST YEAR THE BOARD ORDERED OWNERS OF THE ALLSTAR INN A LOWCOST SAN FERNANDO VALLEY MOTEL TROUBLED BY UNSAVORY PEOPLE TO HIRE 24HOUR GUARDS AT ANNUAL COST OF 100000 THE OWNERS ARE BEING TOLD TO SOLVE A LAW ENFORCEMENT PROBLEM THAT THE CITY POLICE HAVE NOT BEEN ABLE TO FIX IN SPITE OF PATROL CARS BEING DISPATCHED TO THE MOTEL 138 TIMES IN THE SPACE OF ONE YEAR NO ONE HAS BOTHERED TO EXPLAIN WHY THE RESPONSIBILITY OF A LANDLORD CONFRONTED WITH LARGESCALE CRIMINAL ACTIVITY IS NOT MET BY CALLING THE COPS AND REQUESTING HELP CONFRONTING DRUG PEDDLERS AND THEIR CUSTOMERS HARDLY SEEMS LIKE A JOB FOR AMATEURS THE POINT WAS MADE WITH DEADLY CLARITY WITH THE MURDER LAST YEAR OF DONALD ARAGON THE OWNER OF AN APARTMENT BUILDING IN SAN FERNANDO VALLEY WHO WAS ACTIVE IN TRYING TO GET EFFECTIVE POLICING FROM THE CITY FOR HIS NEIGHBORHOOD IRONICALLY MR ARAGON HAD OFFERED TO LET POLICE USE TWO OF HIS APARTMENTS AS OBSERVATION POSTS BUT THE OFFER WAS DECLINED THE LEW CASE IS ALSO DISTURBING ACCORDING TO HIS ATTORNEY DAVID SELF MR LEW'S 36UNIT BUILDING WAS SECTION 8 LOWCOST HOUSING IT WAS OPERATED BY A HUDRECOMMENDED MANAGEMENT FIRM MR LEW DID ALL IT RECOMMENDED HE HIRED A DAYTIME SECURITY GUARD POSTED NO TRESPASSING SIGNS AND SPENT 85000 FOR A SECURITY FENCE DURING THE FIVE YEARS PRECEDING THE LAWSUIT THERE WERE COUNTLESS CALLS TO THE POLICE BY MR LEW'S MANAGER AS WELL AS THE NEIGHBORS TO NO AVAIL ACCORDING TO MR SELF MR LEW OFFERED TWO APARTMENTS TO THE POLICE FOR SURVEILLANCE USE ONE WAS ACCEPTED BUT A MONTH LATER THE POLICE LEFT THE PROPERTY IS NOW IN HUD FORECLOSURE FINALLY IN A CATCH22 TWIST THE LOS ANGELES POLICE COMMISSION HAS ANNOUNCED A CRACKDOWN ON THE PRIVATE SECURITY SQUADS THAT SOME LANDLORDS HAVE HIRED TO DO PRECISELY WHAT THESE CASES WOULD SUGGEST THEY ARE REQUIRED TO DO CONTROL THE CRIMINAL ELEMENT IN THEIR NEIGHBORHOODS WHEN THE POLICE FAIL TO DO SO THE COMMISSION IS UPSET OVER THE PRIVATE GUARDS' RESORT TO STRONGARM TACTICS WHEN CONFRONTED WITH UNCOOPERATIVE SUSPECTS THESE RULINGS ARE BAD NEWS PROTECTING CITIZENS FROM CRIMINALS IS THE PRIME FUNCTION OF GOVERNMENT YET THESE CASES SEEM TO PROCEED ON THE UNSPOKEN PREMISE THAT A LANDLORD IS RESPONSIBLE FOR CONTROLLING CRIME AROUND HIS BUILDING AND IS LIABLE FOR DAMAGES FOR FAILING TO DO SO EVEN WHERE ARMED AND TRAINED POLICE COULD DO NO BETTER ALSO TROUBLING ARE THE IMPLICATIONS OF COURTS ORDERING LANDLORDS TO FENCE IN THEIR TENANTS TO THWART CRIMINALS ARE WE BECOMING A SOCIETY WHERE THE LAWLESS ELEMENT OWNS THE STREETS WHILE DECENT FOLKS HUDDLE BEHIND LOCKED GATES AND FENCES IN THE END ALL THOSE SECURITY MEASURES HAVE TO BE PAID FOR AND LANDLORDS MUST PASS ON THE ADDED COST TO TENANTS BUT PEOPLE WHOSE LOT IN LIFE FORCES THEM TO LIVE IN THE APARTMENTS AND HOTELS LIKELY TO BE INVOLVED IN CASES OF THIS TYPE HAVE LITTLE MONEY AS IT IS THEY OF ALL PEOPLE CAN LEAST AFFORD TO PAY FOR PRIVATE SECURITY MEASURES BECAUSE THEIR SOCIETY HAS SO EXALTED THE RIGHTS OF CRIMINALS WHO PREY ON THEM THAT POLICE CANNOT ENFORCE THE LAW THE PRICE OF MAINTAINING A MINIMALLY ORDERLY SOCIETY IS THE PRICE OF CIVILIZATION AND LAW ENFORCEMENT IS AN ESSENTIAL GOVERNMENT FUNCTION FOR WHICH WE PAY TAXES IT IS DISHONEST TO SHIFT ITS COST ONTO LANDLORDS IN THE END IT RAISES OPERATING COSTS AND INSURANCE PREMIUMS DISCOURAGES INVESTMENT IN BADLY NEEDED LOWCOST HOUSING PROVIDES MARGINAL LANDLORDS WITH INCENTIVES TO CUT CORNERS AND ULTIMATELY IF THINGS GET BAD ENOUGH TO ABANDON BUILDINGS SOMETHING NEW YORK CITY LEARNED THE HARD WAY CALIFORNIA'S LATEST TWIST THAT LANDLORDS IN CRIMERIDDEN PARTS OF TOWN CANNOT RELY ON THE POLICE FOR PROTECTION CAN ONLY SPEED THE DECLINE JUDGES CONFRONTED WITH CASES OF THIS TYPE MIGHT DO WELL TO REFLECT ON THE IDEA THAT IN A RATIONAL SOCIETY EFFECTIVE PUBLIC LAW ENFORCEMENT NOT CONSCRIPTED LANDLORDS' FENCES AND HIRED GUARDS SHOULD STAND BETWEEN THE LAWABIDING CITIZEN AND THE CRIMINAL MR KANNER IS PROFESSOR EMERITUS AT LOYOLA LAW SCHOOL AND A COLUMNIST FOR THE LOS ANGELES DAILY JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR LANDLORDS AS POLICEMEN WSJ FEB 19 1993 9301270112 9302190026 930128 LEISURE & ARTS EARTHBOUND ASTRONAUT CONFESSIONS OF A SPACE CADET BY AMY GAMERMAN HOUSTON SPACE CENTER HOUSTON NEWLY OPENED IN THE SHADOW OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S JOHNSON SPACE CENTER ISN'T REALLY A MUSEUM OR A THEME PARK IT'S AN EXERCISE IN HERO WORSHIP FROM THE ASTRONAUTSTYLE BLUE JUMP SUITS WORN BY THE STAFFERS TO THE SWEEPING THEME MUSIC THAT DOGS YOU FROM THE STARSHIP GALLERY ALL THE WAY TO THE SPACE TRADER GIFT SHOP SPACE CENTER HOUSTON PEDDLES RIGHT STUFF MYSTIQUE WHEN A GUIDE POINTS OUT SOME OF THE HISTORIC HARDWARE LYING AT REST IN JOHNSON SPACE CENTER'S ROCKET PARK AND SAYS IT JUST GOES TO SHOW YOU HOW MUCH HUMANKIND CAN ACCOMPLISH SHE REALLY MEANS IT THIS 70 MILLION PIECE OF NASA PR OPENED IN OCTOBER AFTER SEVEN YEARS OF PLANNING AND FUND RAISING A SPRAWLING GLASSWALLED BUILDING THAT BILLS ITSELF AS A STATEOFTHEART EDUCATION AND ENTERTAINMENT COMPLEX AND LOOKS LIKE A CROSS BETWEEN AN AIRCRAFT HANGAR AND A SHOPPING MALL SPACE CENTER HOUSTON IS THE BRAINCHILD OF HAL STALL JOHNSON SPACE CENTER'S PUBLIC AFFAIRS DIRECTOR WE HAD ABOUT A MILLION PEOPLE A YEAR COMING HERE BUT WE NEVER HAD ANY FACILITY TO ACCOMMODATE THEM SAYS MR STALL A CHARLTON HESTON LOOKALIKE WHO TALKS ABOUT OUR MISSION IN STIRRING TONES BACKED UP NICELY BY THE CENTER'S PIPEDIN THEME MUSIC OUR INTEREST IS THE FUTURE THAT'S WHAT THIS PLACE IS ALL ABOUT IT'S WHERE WE ARE GOING NOT ONLY WE NASA BUT WE THE NATION WE THE WORLD AND WITH A SAGGING ECONOMY AND OTHER DOMESTIC ILLS THAT HAVE PUSHED THE SPACE PROGRAM TO THE VERY MARGINS OF THE NATIONAL AGENDA SPACE CENTER HOUSTON IS VERY MUCH ABOUT ENSURING THAT NASA HAS A FUTURE THE 1986 SHUTTLE CHALLENGER DISASTER DIDN'T HELP MR STALL'S PROJECT GET OFF THE GROUND BUT IT CERTAINLY ADDED NEW URGENCY TO HIS QUEST TO GIVE AMERICA A CHANCE TO LOOK IN THE WINDOW AT THE SPACE PROGRAM AND SEE WHAT'S GOING ON MR STALL'S NOTFORPROFIT MANNED SPACE FLIGHT EDUCATION FOUNDATION RAISED MORE THAN 70 MILLION IN PRIVATE MONEY AND CONGRESS CHIPPED IN AN ADDITIONAL 10 MILLION THE SPACE CENTER IS ALSO SUPPORTED BY REVENUE FROM A LOCAL HOTEL TAX NOT EDUCATION/ENTERTAINMENTCOMPLEX BUSINESS THE FOUNDATION ASKED WALT DISNEY IMAGINEERING TO COME UP WITH A CONCEPT FOR THE SPACE CENTER WHICH WAS EVENTUALLY PRODUCED BY A DISNEY SUBCONTRACTOR BRC IMAGINATION ARTS FROM THERE IT'S JUST AN ASTEROID'S THROW TO A BIG METALLIC LAZBOYLIKE CHAIR ROTATING ON AN AIRBEARING PLATFORM IT'S THE MMU MANNED MANEUVERING UNIT TRAINER A LOWERTECH VERSION OF THE DEVICE USED TO TRAIN ASTRONAUTS TO WORK IN THE FRICTIONLESS ATMOSPHERE OF SPACE SINCE ONLY A FEW VISITORS DOT THE SIBERIALIKE WASTES OF THE SPACE PLAZA THIS QUIET WEEKDAY I GET TO GIVE IT A TEST DRIVE CHARLOTTE MY MMU TRAINER STRAPS ME IN AND ASKS WHERE I'M FROM CAUSE IF YOU'RE LOST IN SPACE AND WE HAVE TO NOTIFY YOUR FOLKS WE HAVE TO KNOW SHE SHOWS ME HOW TO USE THE ARMREST CONTROLS TO MANEUVER THE CHAIR WHILE REACHING UP TO A BOBBING METAL THING TO PERFORM A VARIETY OF TASKS HITTING BUTTONS TURNING KNOBS AND THE LIKE AFTER DOING FIVE OF SIX I RUN OUT OF FUEL AND AM LOST IN SPACE INSTEAD OF CALLING MY MOM CHARLOTTE HAULS ME BACK TO PORT WITH A WARNING THIS ISN'T A RIDE SHE SAYS IF ONLY IT HAD BEEN ALTHOUGH THE JETS OF COMPRESSED AIR SHOOTING OUT FROM THE CHAIR'S BASE MAKE FOR AN INTERESTING HOVERING SENSATION THE MMU TRAINER ISN'T HALF AS EXCITING AS DISNEYLAND'S FLYINGTEACUP RIDE TOTAL WEIGHTLESSNESS SOMETHING EVERY GIRL SHOULD EXPERIENCE ONCE IN HER LIFE WAS WHAT I WAS AFTER ALAS THAT IS IMPOSSIBLE AT SPACE CENTER HOUSTON AND EVERYWHERE ELSE ON EARTH IN THE SPACE CENTER THEATER WHERE A LARGEFORMAT MOVIE CALLED TO BE AN ASTRONAUT PLAYS I LEARN THAT YOU HAVE TO GO HIGH UP IN A PLANE IN ORDER TO ACHIEVE TEMPORARY WEIGHTLESSNESS THE MOVIE WHICH SHOWS REAL ASTRONAUTS IN THIS AND OTHER STAGED TRAINING SCENARIOS INCLUDES STUNNING SPACE FOOTAGE SPLAYED ACROSS THE FIVESTORY SCREEN IT'S SO REAL IT MAKES ME AIRSICK AND STARSTRUCK IN MORE THAN THE CELESTIAL SENSE IN THE THEATER'S FOYER WHERE ASTRONAUTS' PHOTOS ADORN THE WALLS AND APOLLO 11 ASTRONAUT MICHAEL COLLINS'S BIG BIOLOGICAL ISOLATION GARMENT AND OTHER PIECES OF ASTROWEAR ARE DISPLAYED IN ILLUMINATED RELIQUARYLIKE CASES THERE'S A PLAQUE THIS AREA IS RESERVED FOR THE MEN AND WOMEN WHO WILL CONTINUE THE EXPLORATION OF SPACE IT READS WILL YOUR PICTURE APPEAR HERE ONE DAY BEFORE YOU ANSWER THAT QUESTION HEAD OVER TO LIVING IN SPACE A HABITATION MODULE MOCKUP A GUIDE HAS ROPED IN A YOUNG PERSON NAMED MAGGIE FOR A WALKTHROUGH TOUR OF THE MODULE'S GADGETRY FROM THE WALLMOUNTED SLEEP RESTRAINTS TO THE SPACE BATHROOM IN THE HEALTH MAINTENANCE GALLERY WE LEARN THAT WHEN YOU BRUSH YOUR TEETH IN SPACE YOU MUST EITHER SPIT INTO A RAG OR SWALLOW FORTUNATELY FOR MAGGIE SHE ISN'T ASKED TO DEMONSTRATE THE MODULE IS PART OF THE FEEL OF SPACE GALLERY WHICH ALSO LETS YOU TRY ON DIFFERENT ASTRONAUT BUBBLE HELMETS TETHERED BY THE SAME LONG METAL CORDS THAT BOUTIQUES USE TO FRUSTRATE SHOPLIFTERS THERE'S ALSO A BATTERY OF VIDEO GAMELIKE COMPUTER SIMULATORS SUCH AS ORBITAL RENDEZVOUS WHERE YOU CAN TRY DOCKING A SATELLITE AND SHUTTLE ORIENTATION WHERE YOU LEARN THAT A TYPICAL SPACE LUNCH MIGHT INCLUDE THERMOSTABILIZED CORN BEEF BY FAR THE MOST POPULAR VIDEO GAME EXCUSE ME COMPUTER SIMULATOR IS LAND THE SHUTTLE CHET YOUR INSTRUCTOR APPEARS ON A SCREEN MOUNTED IN THE MIDDLE OF A FAKE DASHBOARD REMEMBER THIS IS NOT A GAME CHET SAYS THIS IS 85 TONS OF SPACE SHUTTLE PLUNGING TOWARD EARTH THAT MESSAGE IS LOST ON ONE YOUNGSTER FIDGETING IMPATIENTLY AT THE CONTROLS I DON'T CARE HE SHOUTS AS CHET CHATTERS ON ABOUT 19DEGREE GLIDE SLOPES WHEN I TAKE MY TURN AT THE THROTTLE THE RUNWAY SUDDENLY FLIPS UPSIDE DOWN THERE IS A CRASHING SOUND THAT WAS DIFFERENT SAYS CHET WHO THEN OFFERS TO ANALYZE MY FLIGHT PLAN I SEEK REFUGE IN THE STARSHIP GALLERY WHERE HISTORIC PIECES OF NASA HARDWARE ARE DISPLAYED AGAINST A BACKDROP OF WINKING FIBEROPTIC STARS THERE'S THE MERCURY CAPSULE LOOKING LIKE A GIANT LIGHTBULB AND THE RANCHHOUSESIZED SKYLAB TRAINER WHICH YOU CAN WALK THROUGH YOU CAN ALSO STROLL THROUGH THE SHUTTLE MOCKUP THAT JUTS ITS NOSE OUT OVER SPACE CENTER PLAZA BUT NOTHING COMPETES WITH THE DRAW OF THE APOLLO 17 COMMAND MODULE ITS UNDERSIDE STILL CHARRED FROM A FLAMING REENTRY INTO EARTH'S ATMOSPHERE THE SIGHT OF IT TRULY INSPIRES AWE AND SO DESPITE ITS ESSENTIAL HOKINESS DOES THE TOUCH THE MOON DISPLAY WHICH LETS YOU FINGER A 38 BILLIONYEAROLD CHIP OF BLACK MOON ROCK BROUGHT BACK BY THE APOLLO 17 MISSION IN 1972 A MOCK CURATOR DISPLAY ROOM SHOWS SMOCKED DUMMIES POKING AT REAL LUNAR SOIL THROUGH GLOVED OPENINGS IN A CASE FILLED WITH PURE NITROGEN TO GET BACK IN TOUCH WITH NASA'S CURRENT MISSION YOU ONLY HAVE TO WALK OVER TO THE MISSION STATUS CENTER A THEATER EQUIPPED WITH TWO ROWS OF TVS AND THREE LARGE VIDEO SCREENS DISPLAYING LIVE FEEDS FROM NASA FACILITIES AROUND THE COUNTRY INCLUDING THE ONE NEXT DOOR MARGIT YOUR BRIEFING OFFICER TAPS INTO MISSION CONTROL WHERE NASA FOLKS ARE DOING A TRIAL RUN FOR DEPLOYING A SATELLITE FOR AN EVEN CLOSER LOOK THERE ARE TWO TRAM TOURS ONE GIVES AN OVERALL VIEW OF THE NASA COMPLEX WHILE A SHORTER TOUR TAKES YOU TO A GLASSWALLED GALLERY BEHIND MISSION CONTROL IF YOU WANT TO DOCUMENT THIS MOMENT DON'T BE SHY SAYS OUR GUIDE COME DOWN HERE WITH YOUR CAMERA AND PUT THE LENS RIGHT ON THE GLASS OTHER SOUVENIRS OF YOUR VISIT CAN BE FOUND IN THE BLOATED GIFT SHOP STOCKED WITH PLANET EARTH EARRINGS ASTEROIDSHAPED ROCK CANDY TELESCOPES AND OTHER SPACE JUNK I BUY SOME DEHYDRATED ASTRONAUT ICE CREAM AND AM PROUD TO DO IT AS MR STALL SAYS HERO WORSHIP WHY NOT SEE RELATED LETTER LETTERS TO THE EDITOR YOU TOO CAN BE A SPACE CADET WSJ FEB 19 1993 9301280116 9302190015 930128 COUNTERPOINT SOMETIMES MARIJUANA IS THE BEST MEDICINE BY DOUG BANDOW ADVANCES IN MEDICAL RESEARCH AND TECHNOLOGY HAVE ALLOWED DOCTORS TO INCREASINGLY EXTEND THE LIVES OF MANY TERMINALLY ILL PATIENTS AND ULTIMATELY SAVE OTHERS UNFORTUNATELY THERE IS OFTEN LITTLE THAT DOCTORS CAN DO TO PRESERVE THE QUALITY OF THEIR PATIENTS' LIVES WHAT HAS PROVED TO BE OF VALUE TO SOME OF THE VERY ILL HOWEVER IS MARIJUANA BEFORE SHE DIED IN EARLY 1991 BARBARA JENKS DESPERATELY SICK NOT ONLY FROM AIDS BUT ALSO FROM HEAVY DOSES OF AZT TO COMBAT AIDS EXPLAINED THAT I'VE GOT TO SMOKE MARIJUANA I'VE GOT TO OR I'LL DIE BUT THE BUSH ADMINISTRATION TERMINATED THE PROGRAM UNDER WHICH MS JENKS HER HUSBAND KENNETH A HEMOPHILIAC WHO CONTRACTED AIDS FROM A BLOOD TRANSFUSION AND ROUGHLY A DOZEN OTHER PATIENTS ACQUIRED MARIJUANA LEGALLY THROUGH THE FEDERAL GOVERNMENT ALTHOUGH THE PUBLIC HEALTH SERVICE IS CONTINUING TO SUPPLY CURRENT RECIPIENTS NO NEW PATIENTS ARE BEING ACCEPTED EXPLAINED BILL GRIGG A PUBLIC HEALTH SERVICE SPOKESMAN THE GOVERNMENT WAS AFRAID THAT MARIJUANA MIGHT SICKEN THE DYING PROVING TO BE HARMFUL TO PEOPLE WITH COMPROMISED IMMUNE SYSTEMS THE AGENCY'S DECISION WAS BIZARRE IN JUNE 1991 PUBLIC HEALTH SERVICE HEAD JAMES MASON A POLITICAL APPOINTEE ANNOUNCED THAT HE WAS GOING TO REVIEW THE GOVERNMENT'S POLICY OF PROVIDING MARIJUANA TO PEOPLE SUFFERING FROM AIDS CANCER GLAUCOMA AND OTHER ILLNESSES AFTER CONCLUDING THAT EXISTING EVIDENCE DOES NOT SUPPORT RECOMMENDING SMOKED MARIJUANA AS A TREATMENT OF CHOICE EXPLAINED MR GRIGG DR MASON CANCELED THE PROGRAM THE AGENCY'S DECISION WHICH SHOULD BE REVERSED BY PRESIDENT CLINTON LEFT OUT IN THE COLD THE 28 PATIENTS WHOSE APPLICATIONS HAD ALREADY BEEN APPROVED BY THE FOOD AND DRUG ADMINISTRATION THE PUBLIC HEALTH SERVICE SAID NOT TO WORRY IT WOULD PROVIDE MARINOL A SYNTHETIC FORM OF MARIJUANA'S ACTIVE COMPONENT HOWEVER MANY USERS REPORT THAT MARINOL IS INFERIOR TO MARIJUANA BEING LESS EFFECTIVE HAVING MORE SIDEEFFECTS AND FAILING TO STIMULATE THE APPETITE A PARTICULARLY IMPORTANT BENEFIT FOR AIDS SUFFERERS THE PUBLIC HEALTH SERVICE IS GIVING ME A DEATH SENTENCE COMPLAINED TIM BRAUN A 44YEAROLD AIDS PATIENT WHOSE APPLICATION HAD BEEN APPROVED BY THE FDA MR BRAUN WHO DIED IN MAY SAID THAT WHEN HE FOUND MARIJUANA UNAVAILABLE HIS WEIGHT DROPPED BY ONETHIRD IN A SINGLE MONTH WHILE THE PUBLIC HEALTH SERVICE PROVIDED A PILE OF FACT SHEETS TO BACK UP ITS DECISION IT DID NOT DISPUTE MARIJUANA'S BENEFITS FOR MANY PATIENTS INSTEAD THE AGENCY COMPLAINED THAT FOR INSTANCE MARIJUANA'S EFFECTIVENESS VARIES BY PATIENT IN CONTROLLING CANCERCHEMOTHERAPYINDUCED NAUSEA AND VOMITING AND THAT THE DRUG CAUSES SIDEEFFECTS IN GLAUCOMA PATIENTS AS FOR PAIN CONTROL THE PUBLIC HEALTH SERVICE EVEN ADMITTED THAT THERE MAY WELL BE SOME PATIENTS FOR WHOM MARIJUANA IS A MODERATELY EFFECTIVE PAIN RELIEVER WHEN NO OTHER TREATMENT IS OF BENEFIT BUT THIS HAS NOT BEEN RIGOROUSLY STUDIED ONE WONDERS WHY DIDN'T THE GOVERNMENT CONDUCT SUCH RESEARCH BEFORE CUTTING OFF DESPERATE PATIENTS IN SHORT IT APPEARS THAT THE PUBLIC HEALTH SERVICE MADE A POLITICAL RATHER THAN A MEDICAL JUDGMENT ONE PREDETERMINED BEFORE THE REVIEW EVEN STARTED FOR DR MASON HAD PREVIOUSLY COMPLAINED IF IT'S PERCEIVED THAT THE PUBLIC HEALTH SERVICE IS GOING AROUND GIVING MARIJUANA TO FOLKS THERE WOULD BE A PERCEPTION THAT THIS STUFF CAN'T BE SO BAD BUT THERE IS AN OBVIOUS DIFFERENCE BETWEEN SOMEONE SMOKING A JOINT TO GET HIGH AND USING MARIJUANA UNDER THE GUIDANCE OF A DOCTOR TO RELIEVE SUFFERING FROM A SERIOUS ILLNESS THE PUBLIC OBVIOUSLY SEES THE DISTINCTION IN 1991 SAN FRANCISCO'S ELECTORATE AND MASSACHUSETTS' LEGISLATURE APPROVED MEASURES ALLOWING DOCTORS TO PRESCRIBE MARIJUANA FOR THOSE WHO ARE SERIOUSLY ILL WHILE THE LATTER TWO LAWS HAVE LITTLE EFFECT SINCE ONLY THE FEDERAL GOVERNMENT NOW PROVIDES THE DRUG LEGALLY MORE SIGNIFICANT IS LEGISLATION PASSED IN 1992 BY MAINE'S LEGISLATURE THE MEASURE ULTIMATELY VETOED BY THE GOVERNOR WOULD HAVE EXEMPTED FROM PROSECUTION THOSE CULTIVATING MARIJUANA FOR MEDICAL USE EFFECTIVELY LEGALIZING THE DRUG FOR THIS PURPOSE EVEN HERBERT KLEBER OF THE BUSH ADMINISTRATION'S DRUG POLICY OFFICE CALLED THE PUBLIC HEALTH SERVICE'S MARIJUANA PROGRAM A COMPASSIONATE OPTION FOR THE SICK MOREOVER THE MEDICAL PROFESSION SEES AN IMPORTANT TREATMENT ROLE FOR MARIJUANA MORE THAN 70 OF CANCER SPECIALISTS IN A RECENT HARVARD UNIVERSITY SURVEY STATED THAT THEY WOULD PRESCRIBE MARIJUANA IF IT WERE AVAILABLE LEGALLY NEARLY HALF SAID THAT THEY HAVE ADVISED PATIENTS TO BREAK THE LAW IF NECESSARY TO OBTAIN THE DRUG AND BREAK IT MANY DO JOE HUTCHINS WHO SUFFERS FROM A RARE SKIN DISEASE IS FACING PRISON IN MASSACHUSETTS AFTER HAVING EXHAUSTED HIS APPEAL OF A 1984 MARIJUANA CONVICTION THE JENKSES TOO WERE PROSECUTED FOR GROWING THEIR OWN MARIJUANA BEFORE THEY WERE ADMITTED INTO THE NOW DISCONTINUED FEDERAL PROGRAM THE POINT IS NOT THAT MARIJUANA SHOULD BE THE PREFERRED TREATMENT FOR EVERY PATIENT RATHER A PHYSICIAN AND HIS OR HER PATIENT SHOULD BE ABLE TO CHOOSE MARIJUANA IF IT IS THE BEST MEDICINE IN THAT CASE THE BEST SOLUTION WOULD BE FOR THE DRUG ENFORCEMENT ADMINISTRATION TO STOP CLASSIFYING MARIJUANA AS A SCHEDULE I DRUG WHICH MAKES IT UNAVAILABLE EVEN FOR MEDICAL USE IN 1989 A DEA ADMINISTRATIVE LAW JUDGE DECLARED THE DEA'S STANCE TO BE UNREASONABLE ARBITRARY AND CAPRICIOUS BUT DESPITE SEVERAL CHALLENGES IN FEDERAL COURT THE AGENCY HAS SO FAR REFUSED TO RECONSIDER ITS POSITION UNFORTUNATELY A CLINTON SPOKESMAN SAYS THAT THE PRESIDENT PERHAPS AFRAID TO ADDRESS THE ISSUE BECAUSE OF CRITICISM OVER HIS STUDENT MARIJUANA SUPPORTS CURRENT LAW HE COULD NEVERTHELESS DIRECT THE PUBLIC HEALTH SERVICE TO PROVIDE MARIJUANA WHEN PRESCRIBED BY A DOCTOR FOR A SERIOUSLY ILL PATIENT IN FACT MR CLINTON'S NOMINEE FOR SURGEON GENERAL JOYCELYN ELDERS SAYS THAT THE DRUG SHOULD BE AVAILABLE IN SUCH CASES BY ALLOWING THE MEDICAL USE OF MARIJUANA THE GOVERNMENT WOULD SIMULTANEOUSLY HELP THOSE WITH A FIGHTING CHANCE TO SURVIVE AND EASE THE PAIN OF THOSE WHO ARE DYING WHAT BETTER OPPORTUNITY COULD THERE BE FOR THE NEW PRESIDENT TO DEMONSTRATE HIS COMMITMENT TO CHANGE THAN TO STOP TREATING AIDS AND CANCER PATIENTS AS THE ENEMY MR BANDOW IS A CATO INSTITUTE FELLOW AND A FORMER SPECIAL ASSISTANT TO PRESIDENT REAGAN SEE RELATED LETTER LETTERS TO THE EDITOR MARIJUANA AS MEDICINE WSJ FEB 19 1993 9301280122 9302180189 930218 LONE STAR SET TO SELL TEXAS THRIFT TO UNIT OF TEMPLEINLAND DALLAS LONE STAR TECHNOLOGIES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS AMERICAN FEDERAL BANK FSB UNIT TO TEMPLEINLAND INC'S GUARANTY FEDERAL BANK FSB FOR 150 MILLION THE PRICE WHICH IS SUBJECT TO ADJUSTMENTS REPRESENTS A PREMIUM OVER AMERICAN FEDERAL'S BOOK VALUE WHICH A SPOKESWOMAN ESTIMATED AT BETWEEN 115 MILLION AND 120 MILLION ATHOUGH THE SPOKESWOMAN SAID THE COMPANY CAN'T YET ESTIMATE THE GAIN ON THE SALE THE PLANNED TRANSACTION UNDERSCORES THE LUCRATIVE BARGAIN LONE STAR STRUCK WHEN IT BOUGHT THE THRIFT FOR 48 MILLION FROM FEDERAL REGULATORS IN 1988 AS PART OF THE SOUTHWEST PLAN TO DISPOSE OF INSOLVENT SAVINGS AND LOANS UNDER TERMS OF THE 1988 PURCHASE REGULATORS AGREED TO PUMP MILLIONS OF DOLLARS INTO THE THRIFT TO COMPENSATE FOR SOURED LOANS EVEN THOUGH THE ASSISTANCE WAS SUBSEQUENTLY REDUCED THE THRIFT REMAINED PROFITABLE AND PAID LONE STAR 97 MILLION IN DIVIDENDS LAST YEAR INCLUDING THE ASSETS OF AMERICITY FSB WHICH AMERICAN FEDERAL PURCHASED LAST YEAR FOR 53 MILLION THE THRIFT HAS ABOUT 17 BILLION IN ASSETS AND OPERATES IN 33 LOCATIONS IN THE DALLAS/FORT WORTH AREA NEWS OF THE SALE CAUSED LONE STAR'S STOCK PRICE TO RISE 8125 CENTS TO 5125 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BUT SOME ANALYSTS MAINTAINED THAT LONE STAR MIGHT HAVE A HARD TIME REINVESTING THE PROCEEDS IN AS PROFITABLE A VENTURE AS AMERICAN FEDERAL ITS OTHER MAIN BUSINESS STEEL MANUFACTURING HAS BEEN HURT BY THE RECESSION ESPECIALLY AMONG OIL AND GAS CUSTOMERS I ALWAYS THOUGHT AMERICAN FEDERAL WAS THE ONLY PLUS FOR LONE STAR TECHNOLOGIES SAID FRANK ANDERSON AN ANALYST WITH STEPHENS INC LITTLE ROCK ARK FOR TEMPLEINLAND A PAPER PACKAGING BUILDING PRODUCTS AND FINANCIAL SERVICES CONCERN BASED IN DIBOLL TEXAS THE PURCHASE IS A CHANCE TO BEEF UP ITS ALREADYSUBSTANTIAL THRIFT PRESENCE IN TEXAS GUARANTY FEDERAL ITSELF A PART OF THE SOUTHWEST PLAN OPERATES 100 BANKING CENTERS AROUND THE STATE WITH ABOUT 6 BILLION IN ASSETS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE TEMPLEINLAND SHARES CLOSED AT 4875 DOWN 375 CENTS 9302180188 930218 LETTERS TO THE EDITOR WE'VE SEEN THE UNETHICAL AND HE IS US IN HER JAN 25 EDITORIALPAGE ARTICLE RIGHT FROM WRONG GENERATION GAP AT BSCHOOL MARY SHERRY DESCRIBES A RECENT ENCOUNTER WITH ONE BUSINESS SCHOOL'S EFFORT TO INJECT ETHICS INTO EVERY COURSE THE INSTRUCTOR PRESENTED A SCENARIO IN WHICH A CAR OWNER'S INSURER PAID FOR A STOLEN CAR PHONE AFTER THE PHONE HAD BEEN REPLACED BY THE CAR OWNER'S EMPLOYER IF YOU WERE THE CAR OWNER WHAT WOULD YOU DO RETURN THE MONEY TURN IT OVER TO YOUR EMPLOYER MS SHERRY WAS STUNNED WHEN NEARLY HALF THE CLASS SAID THEY WOULD KEEP THE PHONE AND THE MONEY I WAS STUNNED AS WELL NOT BY THE RESPONSE OF THE STUDENTS BUT BY THE VERY NATURE OF THIS SUPPOSED ETHICAL PROBLEM SINCE WHEN HAS BUSINESS ETHICS MEANT POSING PROBLEMS TO INDIVIDUALS ABOUT THEIR PERSONAL FINANCES IN MS SHERRY'S VERSION OF BUSINESS ETHICS THE BURDEN OF MAKING THE DIFFICULT DECISIONS THAT TAKE INTO ACCOUNT MORE THAN JUST THE BOTTOM LINE DOES NOT REST WITH THE BUSINESS INTERESTS THEMSELVES BUT IS SUDDENLY THRUST UPON THE EMPLOYEE SOLELY IN HIS ROLE AS A WAGE EARNER MEANWHILE THE BUSINESS FIRMS ARE NOTHING BUT GENEROUS AND BOUNTIFUL WITH THEIR BENEFITS FOR THIS EMPLOYEE IN DISTRESS SO BOUNTIFUL IN FACT THAT THE EMPLOYEE IS TORN BY ETHICAL PROBLEMS OVER NOTHING MORE THAN 100 A MERE SPECK OF DUST IN THE FINANCIAL PICTURE OF THE INSURER WHATEVER HAPPENED TO THE ETHICAL LESSONS OF THE US CAR MANUFACTURER THAT CALCULATED INTO ITS CAR PRICES THE LIKELY DAMAGE AWARDS IN LOSSOFLIFE SUITS BY THE FAMILIES OF DRIVERS OF CARS IT KNEW WERE STRUCTURALLY UNSOUND BUSINESS ETHICS IS ABOUT DECISIONS OVER LOANS INVESTMENTS EMPLOYMENT AND PRODUCTION THAT AFFECT NOT JUST ON THE BOTTOM LINE BUT THE QUALITY OF LIFE OF TENS HUNDREDS OR THOUSANDS OF PEOPLE NOT PROBLEMS IN PERSONAL FINANCE OVER CAR PHONES IF MS SHERRY'S ARTICLE IS INDEED AN ACCURATE REFLECTION OF THE WAY BUSINESS SCHOOLS ARE TRAINING FUTURE MANAGERS AND BANKERS AND CEOS TO VIEW BUSINESS ETHICS THEY HAVE MADE FAR LESS PROGRESS THAN SHE IMAGINES IT IS IRONIC THAT PEOPLE REFUSE TO CONDEMN WHAT AMOUNTS TO THEFT OR FRAUD WHEN THEY ARE EAGER TO ATTACK BEHAVIOR REFLECTING MERE PERSONAL CHOICE WE'RE BECOMING LESS TOLERANT OF ONE ANOTHER EVEN AS WE SLIP TOGETHER INTO A MORAL MORASS THE RUNNER FLITS THROUGH STOPPED TRAFFIC SERENE THAT HE IS IN THE RIGHT BECAUSE HE'S DOING SOMETHING HEALTHFUL SOMETHING RIGHT SOMETHING MORAL IF HONKED AT HE'S OFTEN INDIGNANT HOW DARE THOSE SEDENTARY SOULS IN POLLUTIONSPEWING CARS TELL HIM WHAT HE SHOULDN'T DO THE CHILDLESS MIDDLEAGED WOMAN SCOWLS AS THE RESTAURANT HOSTESS SEATS A COUPLE WITH A WRIGGLING CHILD WHEN SHE WAS A CHILD SHE WOULD NEVER HAVE BEEN TAKEN TO AN EXPENSIVE RESTAURANT BEFORE SHE'D LEARNED HER MANNERS HOW DARE THIS COUPLE FORCE THEIR CHILDBEARING INTO HER DINNER SPACE THE FATHER CHANGES A DIAPER ON THE EMPTY AIRPLANE SEAT NEXT TO A DISMAYED PASSENGER CHILDREN ARE NATURAL VALUABLE THINGS THE BODILY FUNCTIONS ARE NATURAL HOW DARE THIS PERSON JUDGE HIM ALL OF US VALUE THE CHOICES WE MAKE THAT'S WHY WE MAKE THEM THE DANGER FOLLOWS AS WE THEN GENERALIZE FROM OUR CHOICES TO MORAL IMPERATIVES WHAT WE CHOOSE TO DO IS RIGHT THOSE WHO DISAGREE ARE WRONG PARADOXICALLY PEOPLE ARE RELUCTANT TO EXPRESS DISAPPROVAL OF SERIOUS ISSUES RIGHT AND WRONG LEGAL AND ILLEGAL YOU PROBABLY HAVE A FRIEND WHO BOASTS ABOUT THE EXTENT OF HIS TAX EVASION OR A NONWORKING FRIEND WHO IS NOT LOOKING FOR WORK OR INTENDING TO DO SO UNTIL THE UNEMPLOYMENT CHECKS RUN OUT THESE ISSUES YOU DON'T DISCUSS MORAL INDIGNATION IS DANGEROUS WE NEED LESS OF IT REGARDING TRULY PERSONAL CHOICES AND MORE OF IT REGARDING MAJOR ISSUES THERE IS NO ENCLAVE OF LAWBREAKERS AND PETTY THIEVES DRIVING DOWN THE QUALITY OF LIFE DESTROYING PRODUCTIVITY AND DRIVING UP YOUR INSURANCE RATES LOOK AROUND IT'S US SPEAK UP 9302180187 930218 WHO'S NEWS SAMSUNG CO SAMSUNG CO SEOUL KOREA JOHN GARRISON FORMER VICE PRESIDENT/GENERAL MANAGER OF SECURITY SYSTEMS FOR SONY CORP'S BUSINESS AND PROFESSIONAL GROUP WAS NAMED VICE PRESIDENT MARKETING FOR THE CONSUMER ELECTRONICS DIVISION OF SAMSUNG ELECTRONICS AMERICA INC THE US UNIT OF THIS TRADING COMPANY 9302180186 930218 WHO'S NEWS AIRCURE ENVIRONMENTAL INC AIRCURE ENVIRONMENTAL INC MINNEAPOLIS JOHN DRURY A MANAGING DIRECTOR OF SANDERS MORRIS MUNDY INC AN INVESTMENT BANKING FIRM WAS NAMED A DIRECTOR OF THIS MAKER OF AIR POLLUTIONCONTROL SYSTEMS SUCCEEDING ROBERT MILLER WHO RESIGNED 9302180185 930218 WHO'S NEWS BUTTREY FOOD & DRUG STORES CO BUTTREY FOOD & DRUG STORES CO GREAT FALLS MONT EDWARD C AGNEW PRESIDENT AND CHIEF EXECUTIVE WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE EFFECTIVE MARCH 1 MR AGNEW 53 YEARS OLD SUCCEEDS PETER J SODINI AS CHAIRMAN MR SODINI CONTINUES AS A DIRECTOR THE RETAIL CHAIN ALSO SAID IT NAMED JOSEPH H FERNANDEZ 40 EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF KINGS SUPER MARKETS INC AS PRESIDENT AND CHIEF OPERATING OFFICER AND A DIRECTOR 9302180184 930218 WHO'S NEWS MEDICAL ACTION INDUSTRIES INC MEDICAL ACTION INDUSTRIES INC HAUPPAUGE NY PAUL SNEAD WAS APPOINTED TREASURER AND PRINCIPAL ACCOUNTING OFFICER AND RICHARD G SATIN AND GROVER A COX WERE NAMED DIRECTORS INCREASING THE BOARD'S SIZE TO SEVEN MR SNEAD 27 YEARS OLD SUCCEEDS PAUL V ROSSI WHO LEFT THE COMPANY TO PURSUE OTHER OPPORTUNITIES MR SNEAD HAD BEEN AN AUDIT MANAGER WITH ERNST & YOUNG MR SATIN 37 WAS RECENTLY NAMED VICE PRESIDENT AND GENERAL COUNSEL AT THE COMPANY MR COX 60 HAS BEEN VICE PRESIDENT SALES AND MARKETING SINCE LAST FEBRUARY 9302180183 930218 WHO'S NEWS CONTROL RESOURCE INDUSTRIES INC CONTROL RESOURCE INDUSTRIES INC MICHIGAN CITY IND JOHN W BURKHART 55YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THIS DISTRIBUTOR OF SUPPLIES FOR INDUSTRIAL SAFETY AND HAZARDOUSMATERIAL REMOVAL SUCCEEDING JOHN M WOJCIK 39 WHO RESIGNED FOR PERSONAL REASONS JAMES J AMBROSE 40 FORMERLY REGIONAL MANAGER FOR GE SUPPLY A DIVISION OF GENERAL ELECTRIC CO WAS NAMED PRESIDENT OF THE COMPANY'S CONTROL RESOURCE SYSTEMS INC UNIT ALSO SUCCEEDING MR WOJCIK 9302180182 930218 WHO'S NEWS NORTHERN TRUST CO NORTHERN TRUST CO CHICAGO KATHLEEN M ALMANEY A VICE PRESIDENT WAS NAMED A SENIOR VICE PRESIDENT OF THIS BANK HOLDING COMPANY 9302180181 930218 TECHNOLOGY BENEFITS OF CALCIUM IN SLOWING BONE LOSS IN WOMEN IS SHOWN BOSTON NEW ZEALAND RESEARCHERS FOUND CALCIUM SUPPLEMENTS SIGNIFICANTLY SLOWED BONE LOSS IN A STUDY OF POSTMENOPAUSAL WOMEN AND FOR THE FIRST TIME SHOWED THAT THE EFFECT IS LASTING THEIR STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE CLEARS UP SOME CONFUSION SURROUNDING THE EFFECT OF CALCIUM ON OSTEOPOROSIS THE DEBILITATING BONELOSS DISEASE THAT AFFLICTS 25 MILLION AMERICANS MOSTLY POSTMENOPAUSAL WOMEN SEVERAL DOZEN STUDIES ON THE EFFECT OF CALCIUM ON BONE LOSS PUBLISHED SINCE 1988 PRODUCED CONFLICTING RESULTS WITH MANY STUDIES SHOWING THERE WASN'T ANY BENEFIT REPORTED ROBERT P HEANEY PROFESSOR AT CREIGHTON UNIVERSITY IN OMAHA NEB WHO WROTE AN EDITORIAL ACCOMPANYING THE STUDY BUT MANY OF THE STUDIES INCLUDED WOMEN WHO HAD JUST GONE THROUGH MENOPAUSE WHEN ESTROGEN WITHDRAWAL IS OVERWHELMINGLY RESPONSIBLE FOR BONE LOSS DR HEANEY SAYS IT'S LIKE TRYING TO SEE A MATCH IN THE FACE OF THE SUN EVEN STUDIES THAT SHOWED A BENEFIT IN TAKING CALCIUM SUPPLEMENTS LEFT UNANSWERED WHETHER THE IMPROVEMENTS WERE TEMPORARY AN EFFECT THAT IS OFTEN SEEN WITH OSTEOPOROSIS TREATMENTS IN THE FIRST SIX MONTHS TO A YEAR DR HEANEY SAID BUT THE STUDY LED BY IAN R REID OF THE UNIVERSITY OF AUCKLAND IN NEW ZEALAND APPEARS TO HAVE RESOLVED THOSE QUESTIONS DR HEANEY SAID THE PATIENTS WERE LIMITED TO WOMEN AT LEAST THREE YEARS PAST MENOPAUSE AND THE STUDY RAN LONG ENOUGH TO DEMONSTRATE THAT THE BENEFIT IS LASTING IN THE STUDY 122 WOMEN WERE EITHER GIVEN A CALCIUM SUPPLEMENT OF 1000MILLIGRAMS A DAY OR A PLACEBO FOR TWO YEARS THE RATE OF BONE LOSS WAS REDUCED BY ONETHIRD TO ONEHALF IN THE WOMEN WHO TOOK THE SUPPLEMENTS COMPARED WITH THOSE WHO TOOK THE PLACEBO THE STUDY HAS IMPORTANT IMPLICATIONS FOR HOW MUCH CALCIUM IS ENOUGH DR HEANEY SAYS THE RECOMMENDED DAILY AMOUNT IS 800 MILLIGRAMS BUT MOST WOMEN TAKE FAR LESS AVERAGING ABOUT 500 MILLIGRAMS HE SAID TO BOOST CONSUMERS' CALCIUM INTAKE HE SUGGESTED FOOD MANUFACTURERS FORTIFY FOODS SUCH AS BREADS WITH CALCIUM I THINK IT'S A GOOD IDEA WHOSE TIME HAS COME HE SAID 9302180180 930218 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH FREDERICK WELLS HILL 43 YEARS OLD WAS NAMED DIRECTOR OF CORPORATE RELATIONS FOR THIS ELECTRICAL EQUIPMENT BROADCASTING AND ELECTRONICS CONCERN MR HILLS WAS FORMERLY EXECUTIVE DIRECTOR OF GOVERNMENT AFFAIRS HE SUCCEEDS EILEEN P MASSARO 41 WHO WAS VICE PRESIDENT CORPORATE RELATIONS AND RESIGNED TO PURSUE OTHER INTERESTS ALONG WITH HER HUSBAND ANTHONY MASSARO PRESIDENT OF WESTINGHOUSE'S ENVIRONMENTAL UNIT MS MASSARO HAS BEEN A PERSONAL FRIEND OF PAUL LEGO WHO RESIGNED AS WESTINGHOUSE'S CHIEF EXECUTIVE OFFICER LAST MONTH AMID SHAREHOLDER UNREST 9302180179 930218 WHO'S NEWS UNISYS CORP UNISYS CORP BLUE BELL PA DEBORAH C HOPKINS WAS NAMED CORPORATE VICE PRESIDENT AND CONTROLLER AT THIS INFORMATION SYSTEMS COMPANY MS HOPKINS 38 YEARS OLD SUCCEEDS WILLIAM ROWAN RECENTLY NAMED CHIEF INFORMATION OFFICER MS HOPKINS HAD BEEN VICE PRESIDENT OF CORPORATE BUSINESS ANALYSIS 9302180178 930218 WHO'S NEWS AMERICAN SCIENCE & ENGINEERING INC AMERICAN SCIENCE & ENGINEERING INC CAMBRIDGE MASS DONALD J MCCARREN PRESIDENT AND CHIEF OPERATING OFFICER OF IMMUNOGEN INC AND HAMILTON HELMER PRESIDENT OF HELMER & ASSOCIATES CONSULTANTS WERE NAMED DIRECTORS OF THIS MAKER OF XRAY INSPECTION SYSTEMS EXPANDING THE BOARD TO SIX MEMBERS 9302180177 930218 WHO'S NEWS KEYSTONE INTERNATIONAL INC KEYSTONE INTERNATIONAL INC HOUSTON BOB G GOWER CHIEF EXECUTIVE OFFICER OF LYONDELL PETROCHEMICAL CO WAS NAMED TO THE BOARD OF THE VALVE MAKER THE 54YEAROLD MR GOWER SUCCEEDS JAMES H ELDER JR WHO RESIGNED FROM THE BOARD FOR PERSONAL REASONS 9302180176 930218 BILLPAYING INDEX SHOWED IMPROVEMENT FOR 4TH QUARTER 1992 NEW YORK BUSINESSES SHOWED SIGNIFICANT IMPROVEMENT IN THEIR BILLPAYING PERFORMANCE IN THE FOURTH QUARTER OF 1992 ALTHOUGH SLOWER PAYERS STILL OUTNUMBERED QUICKER PAYERS DUN & BRADSTREET CORP SAID DUN & BRADSTREET'S PAYMENT PERFORMANCE INDEX ALTHOUGH IN THE RED AT NEGATIVE FIVE HAS RISEN FROM A LOW OF NEGATIVE 102 IN THE 1991 THIRD QUARTER AND IS AT ITS HIGHEST LEVEL SINCE THE 1990 FOURTH QUARTER THE QUARTERLY INDEX WHICH USES A SAMPLE OF ONE MILLION FIRMS BASED ON ACCOUNTS RECEIVABLE DATA FROM SUPPLIERS REPRESENTS THE PERCENTAGE OF FIRMS PAYING MORE QUICKLY THAN A YEAR AGO MINUS THE PERCENTAGE PAYING MORE SLOWLY LARGE BUSINESSES THOSE WITH 500 OR MORE EMPLOYEES CONTINUED TO DO BETTER THAN SMALL AND MEDIUMSIZE CONCERNS THE LARGEBUSINESS INDEX ROSE TO 56 FROM 34 MEDIUMSIZE FIRMS WITH 20 TO 499 EMPLOYEES WERE CARRIED UP WITH THE LARGE FIRMSTHEIR INDEX IMPROVED TO NEGATIVE 17 FROM NEGATIVE THREE THE SURGE IN CORPORATE PROFITS RESULTED IN AN IMPROVED CASHFLOW POSITION FOR THE LARGE FIRMS SAID DAVID T KRESGE VICE PRESIDENT OF ANALYTICAL SERVICES FOR DUN & BRADSTREET INFORMATION SERVICES WHICH COMPILES THE INDEX THIS HAS ALLOWED THEM TO SPEED UP PAYMENTS TO SUPPLIERS WHO ARE CONCENTRATED IN THE MEDIUM AND SMALL BUSINESS SEGMENTS AND WILL HAVE A BENEFICIAL TRICKLEDOWN EFFECT ON SMALLER FIRMS THAT SHOULD BECOME APPARENT IN THE COMING MONTHS SMALL BUSINESSES HAVEN'T FELT THE TRICKLEDOWN BENEFIT YET THEIR PAYMENT INDEX IMPROVED MARGINALLY AND IS STILL LOW AT NEGATIVE 75 NEW ENGLAND SHOWED THE STRONGEST REGIONAL GAIN TO NEGATIVE 43 FROM NEGATIVE 65 IN THE THIRD QUARTER THE BEST REGIONAL INDEX WAS THE MOUNTAIN STATES AT NEGATIVE 27 THE PACIFIC REGION SHOWED NO IMPROVEMENT AND AT NEGATIVE 75 ITS INDEX IS THE WEAKEST IN THE NATION DUN & BRADSTREET SAID 9302180175 930218 INTERNATIONAL INSIDERTRADING TRIAL AGAINST FRENCH AIDE AND OTHERS TO PROCEED PARIS REUTER A FRENCH JUDGE ORDERED A FORMER TOP AIDE TO PRIME MINISTER PIERRE BEREGOVOY AND EIGHT OTHER SUSPECTS TO STAND TRIAL FOR INSIDER TRADING IN COLLUSION WITH A CLOSE FRIEND OF PRESIDENT FRANCOIS MITTERRAND THE DECISION HIGHLIGHTED SCANDALS PLAGUING THE RULING SOCIALIST PARTY JUST FIVE WEEKS BEFORE PARLIAMENTARY ELECTIONS THE CASE CENTERS ON LARGESCALE PURCHASE OF SHARES IN THE US COMPANY TRIANGLE INDUSTRIES INC JUST BEFORE IT WAS TAKEN OVER BY FRENCH STATERUN ALUMINUM COMPANY PECHINEY SA IN 1988 THE ACCUSED INCLUDE ALAIN BOUBLIL CHARGED WITH GIVING THE KEY TIP WHEN HE WAS MR BEREGOVOY'S PERSONAL CHIEFOFSTAFF AT THE FINANCE MINISTRY AND TWO BUSINESSMEN CLOSE TO THE RULING SOCIALIST PARTY SAMIR TRABOULSI AND MAX THERET THE MAIN BENEFICIARIES WERE MR THERET AND ROGERPATRICE PELAT A FINANCIER AND LONGTIME FRIEND OF MR MITTERRAND WHO DIED SHORTLY AFTER BEING INDICTED IN 1989 IF CONVICTED THE ACCUSED FACE UP TO TWO YEARS IN PRISON AND FINES OF UP TO 900000 FOR INSIDER TRADING ADDING TO THE SOCIALISTS' EMBARRASSMENT THE PROSECUTOR'S REPORT SAID MR BOUBLIL GAVE MR PELAT THE TIP AT A LUNCH IN A PARIS RESTAURANT CELEBRATING MR BEREGOVOY'S 40TH WEDDING ANNIVERSARY IT DID NOT SUGGEST MR BEREGOVOY WAS INVOLVED MEANWHILE IN A SEPARATE CASE THE JUSTICE MINISTRY HAS BARRED ANOTHER JUDGE FROM INVESTIGATING THE CIRCUMSTANCES OF AN INTERESTFREE LOAN OF 185000 THAT MR BEREGOVOY GOT FROM MR PELAT IN 1986 THAT ORDER PROMPTED THE JUDGE TO ASK TO BE RELIEVED OF AN INVESTIGATION INTO MR PELAT'S AFFAIRS AUTHORITIES SAID THEY HAD DETERMINED THAT THERE WAS NOTHING ILLEGAL IN THE LOAN MR BEREGOVOY HAS SAID THAT THE LOAN WAS ENTIRELY ABOVEBOARD BECAUSE IT WAS FORMALLY REGISTERED WITH A NOTARY HE ALSO SAYS IT WAS REPAID AFTER MR PELAT'S DEATH PARTLY IN CASH AND PARTLY IN THE FORM OF OLD BOOKS AND ANTIQUESEND 9302180174 930218 WHO'S NEWS CHECK EXPRESS INC CHECK EXPRESS INC TAMPA FLA W KEITH SCHILIT WAS NAMED TO THE BOARD OF THE PROVIDER OF FINANCIAL SERVICES MR SCHILIT 38 YEARS OLD IS DIRECTOR OF THE PROGRAM IN ENTREPRENEURSHIP AT THE UNIVERSITY OF SOUTH FLORIDA IN TAMPA HIS APPOINTMENT INCREASES THE SIZE OF THE COMPANY'S BOARD TO FIVE MEMBERS 9302180173 930218 WHO'S NEWS GLACIER WATER SERVICES INC GLACIER WATER SERVICES INC OCEANSIDE CALIF KATHLEEN M FISHER WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS OPERATOR OF COINOPERATED WATER VENDING MACHINES MS FISHER 38 YEARS OLD PREVIOUSLY WAS VICE PRESIDENT OF FINANCE/CONTROL WITH VITAREL MICROELECTRONICS INC DUKE BUSHONG THE COMPANY'S 41YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER PREVIOUSLY HELD THE TITLE OF CHIEF FINANCIAL OFFICER AS WELL 9302180172 930218 WHO'S NEWS PUBLIC SERVICE ENTERPRISE GROUP INC PUBLIC SERVICE ENTERPRISE GROUP INC NEWARK NJ PAUL H WAY 55 YEARS OLD WAS NAMED PRESIDENT OF ENTERPRISE DIVERSIFIED HOLDINGS INC PARENT OF PUBLIC SERVICE ENTERPRISE'S NONUTILITY BUSINESS MR WAY SUCCEEDS RETIRING PRESIDENT AND CHIEF OPERATING OFFICER EVERETT L MORRIS 65 MR WAY WAS SENIOR VICE PRESIDENT OF ENTERPRISE DIVERSIFIED 9302180171 930218 MONEYFUND YIELD CONTINUED TO DECLINE IN LATEST WEEK'S TALLY NEW YORK YIELDS ON MONEYMARKET MUTUAL FUNDS CONTINUED TO SLIP IN THE LATEST WEEK AS INSTITUTIONAL INVESTORS PULLED BILLIONS OF DOLLARS OUT OF TAXABLE FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 275 FROM 276 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF ALL 566 TAXABLE FUNDS TRACKED BY THE NEWSLETTER FELL BY 979 BILLION TO 47776 BILLION INSTITUTIONAL INVESTORS WITHDREW 1027 BILLION FROM 147 FUNDS OPEN ONLY TO THEM WHILE INDIVIDUALS ADDED LESS THAN 500 MILLION TO THE REMAINING 419 FUNDS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MOST OF THE INSTITUTIONAL MONEY PROBABLY WENT INTO THE BOND MARKET WHICH HE SAID RALLIED A BIT AFTER THE TREASURY COMPLETED ITS QUARTERLY REFUNDING LAST WEEK NOTING THE SHARP DROP IN THE STOCK MARKET TUESDAY MR FRANK PREDICTED AN INFLOW INTO MONEY FUNDS DURING THE CURRENT WEEK AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES AND THUS MONEYFUND YIELDS TO RISE ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 271 FROM 273 MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD SLIPPED TO 274 FROM 275 AND THE AVERAGE 30DAY COMPOUND YIELD SLID TO 278 FROM 279 YIELDS ON TAXFREE MONEY FUNDS FELL MORE THE AVERAGE SEVENDAY COMPOUND YIELD DECLINED TO 194 FROM 2 THE NEWSLETTER REPORTED THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 269 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 281 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 308 TAXFREE FUNDS GREW BY JUST 36 MILLION TO ABOUT 10252 BILLION AVERAGE MATURITY REMAINED AT 53 DAYS 9302180169 930218 ARVIN'S PACT TO BUY SPACE INDUSTRIES SWAPS STOCK AND WARRANTS COLUMBUS IND ARVIN INDUSTRIES INC SAID THE TERMS OF ITS PREVIOUSLY ANNOUNCED PACT TO ACQUIRE SPACE INDUSTRIES INTERNATIONAL INC INVOLVE AN EXCHANGE OF STOCK AND WARRANTS IN A SECURITIES AND EXCHANGE COMMISSION FILING ARVIN SAID IT HAS FORMED CALSPAN HOLDING CORP AS A HOLDING COMPANY FOR TWO ARVIN UNITS SYSTEMS RESEARCH LABORATORIES INC AND CALSPAN CORP THE CALSPAN UNIT IS A RESEARCH DEVELOPMENT TESTING AND EVALUATION COMPANY SPACE INDUSTRIES IS A CLOSELY HELD HOUSTONBASED MAKER OF INDUSTRIAL SPACEFLIGHT EQUIPMENT AND SPACE SYSTEMS UNDER TERMS OF THE PACT INITIALLY ANNOUNCED IN SEPTEMBER EACH SHARE OUTSTANDING OF SPACE INDUSTRIES COMMON STOCK WILL BE CONVERTED INTO THE RIGHT TO RECEIVE ONEHALF SHARE OF CALSPAN HOLDING COMMON A WARRANT TO PURCHASE 0052 SHARE OF CALSPAN HOLDING COMMON AT 16 A SHARE AND A WARRANT TO PURCHASE 104 SHARE OF CALSPAN HOLDING COMMON AT 20 A SHARE EACH SHARE OF SPACE INDUSTRIES PREFERRED STOCK OUTSTANDING WILL ALSO BE CONVERTED INTO THE RIGHT TO RECEIVE ONE SHARE OF CALSPAN HOLDING PREFERRED STOCK AN ARVIN SPOKESMAN DECLINED TO PUT A VALUE ON THE ACQUISITION ARVIN SAID IT WILL OWN ABOUT 70 OF CALSPAN HOLDING COMMON AND ABOUT 82 OF THE PREFERRED STOCK THE STOCKHOLDERS OF SPACE INDUSTRIES WILL OWN THE REMAINDER THE ACQUISITION IS SUBJECT TO CERTAIN CONDITIONS INCLUDING APPROVAL BY SPACE INDUSTRIES SHAREHOLDERS AS WELL AS REGULATORY APPROVALS CALSPAN HOLDING WILL BE RENAMED SPACE INDUSTRIES INTERNATIONAL INC 9302180168 930218 AFLCIO SEEN ENDING BATTLE WITH TEAMSTERS LIFTING OF SANCTIONS HALTS TURF WAR FOR MEMBERS CAREY REAPS GOODWILL BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BAL HARBOUR FLA THE AFLCIO IS ABOUT TO LIFT SANCTIONS AGAINST THE TEAMSTERS UNION MARKING AN END TO BITTER JURISDICTIONAL BATTLES BETWEEN THE NATION'S BIGGEST UNION AND THE REST OF ORGANIZED LABOR THE ACTION MEANS THAT BECAUSE THE TEAMSTERS IS MAKING PEACE WITH OTHER UNIONS OVER THE TEAMSTERS' PREVIOUS RAIDS FOR MEMBERS THE OTHER UNIONS WILL NO LONGER BE ABLE TO TRY TO STEAL MEMBERS FROM THE TEAMSTERS ALTHOUGH THE FORMAL END OF THE SANCTIONS ISN'T EXPECTED TO COME UNTIL A VOTE BY THE AFLCIO'S EXECUTIVE COUNCIL TODAY A COMMITTEE OF LABOR LEADERS CLEARED THE WAY YESTERDAY BY APPROVING A REQUEST BY TEAMSTER PRESIDENT RON CAREY TO LIFT THE SANCTIONS BY MAKING PEACE WITH 13 UNIONS THAT HAD ACCUSED THE TEAMSTERS OF INVADING THEIR TURF MR CAREY IS TAKING ANOTHER STEP TOWARD ERASING HIS UNION'S IMAGE AS A RENEGADE IT CONTRIBUTES TO SOLIDARITY AND MUTUAL COOPERATION SAID AFLCIO PRESIDENT LANE KIRKLAND WHO IS MEETING HERE THIS WEEK WITH OTHER LABOR LEADERS AT THE SAME TIME IT HELPS CLEAR THE WAY FOR MR CAREY TO FOLLOW THROUGH ON HIS PLANS TO TRY TO ORGANIZE SOME OF THE 84 OF THE NATION'S WORKERS WHO DON'T HAVE A UNION HE HAS SET UP A 35 MILLION FUND FOR THAT PURPOSE THE EASIEST THING IN THE WORLD IS TO RAID A UNION HE SAID YESTERDAY THE TOUGHEST THING IS TO GO OUT AND ORGANIZE THE TEAMSTERS WHO HAVE 14 MILLION MEMBERS ALSO LEARNED THAT OTHER UNIONS CAN FIGHT BACK TEAMSTER OFFICIALS SAY THEY'VE HAD TO WAGE COSTLY CAMPAIGNS TO KEEP SOME OF ITS MEMBERS FROM SUCCUMBING TO RAIDS BY OTHER UNIONS FLIGHT ATTENDANTS AT NORTHWEST AIRLINES FOR EXAMPLE CONSIDERED AFFILIATING WITH THE ASSOCIATION OF FLIGHT ATTENDANTS UNTIL MR CAREY HELPED PERSUADE THEM TO STAY WITH THE TEAMSTERS OVER THE LAST SEVERAL MONTHS MR CAREY HAS SUCCESSFULLY URGED TEAMSTERS LOCALS AROUND THE COUNTRY TO HALT RAIDS ON OTHER UNIONS IN SOME CASES HE THREATENED LOCAL TEAMSTERS OFFICIALS WITH TRUSTEESHIP OR A TAKEOVER OF THEIR LOCALS BY THE INTERNATIONAL UNION IN ALL MR CAREY HAD TO ASSURE THE AFLCIO COMMITTEE THAT HIS UNION HAD AGREED TO CLEAR UP 34 DIFFERENT DISPUTES WITH THE UNIONS IT WILL BE A CELEBRATION NOT A VOTE AN AFLCIO OFFICIAL SAID OF THE FEDERATION'S EXPECTED APPROVAL TO END THE SANCTIONS THE 86 UNIONS IN THE AFLCIO REPRESENT SOME 14 MILLION WORKERS MR CAREY WHO TOOK OFFICE LAST YEAR COULD USE THE GOODWILL HE FACES IMPORTANT CONTRACT NEGOTIATIONS LATER THIS YEAR WITH UNITED PARCEL SERVICE AT A TIME WHEN HIS UNION'S STRIKE FUND IS DWINDLING THE CONTRACT EXPIRES JULY 31 IF HE IS UNABLE TO GET THE APPROVAL OF LOCAL TEAMSTERS OFFICIALS AROUND THE COUNTRY FOR A DUES INCREASE MR CAREY SUGGESTS HE MIGHT HAVE TO TURN TO OTHER UNIONS FOR LOANS 9302180167 930218 LAW LEGAL BEAT PAPER TARGETS SMALLER FIRMS SOLO PRACTICES BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL SMALL LAW FIRMS AND ATTORNEYS WHO PRACTICE ON THEIR OWN WILL SOON HAVE THEIR OWN NATIONAL NEWSPAPER THE NEW PUBLICATION A BIWEEKLY DESPITE ITS NAME LAWYERS WEEKLY USA WILL BE AIMED AT THE LOW END OF THE LEGAL MARKET WHICH IS LARGELY IGNORED BY THE TWO CURRENT NATIONAL LAW PUBLICATIONS THE NATIONAL LAW JOURNAL AND THE AMERICAN LAWYER ABOUT HALF OF THE US'S APPROXIMATELY 800000 LAWYERS PRACTICE IN SMALL FIRMS OR BY THEMSELVES SAYS LAWYERS WEEKLY PUBLICATIONS WHICH WILL LAUNCH THE NEWSPAPER THIS SPRING AND UNLIKE OTHER LEGAL PUBLICATIONS LAWYERS WEEKLY USA WILL BE MARKETED MOST HEAVILY TO LAWYERS OUTSIDE MAJOR CITIES ESPECIALLY TO LAWYERS IN FASTGROWING SUBURBAN AREAS BOSTONBASED LAWYERS WEEKLY WHICH PUBLISHES SIX REGIONAL LEGAL NEWSPAPERS AND LAWYERS ALERT MAGAZINE CONCEDES IT HAS A TOUGH CHALLENGE IN PUBLISHING A SINGLE PUBLICATION THAT WILL APPEAL AND SELL TO A FARFLUNG CROWD OF SOMETIMES ISOLATED LAWYERS BUT THE COMPANY SAYS IT EXPECTS TO BE ABLE TO DELIVER BY COMBINING THE HARD NEWS OF STATE AND FEDERAL DECISIONS WITH STORIES ON MANAGING SMALL FIRMS OUR APPROACH WILL BE VERY PRACTICAL AND VERY PRAGMATIC SAYS SAMUEL SPENCER VICE CHAIRMAN OF CLOSELY HELD LAWYERS WEEKLY PUBLICATIONS IN REPORTING ON SIGNIFICANT DECISIONS THE FOCUS WILL BE HOW TO USE THIS IN YOUR PRACTICE MR SPENCER SAYS THE NEWSPAPER'S HOW TO THEME IS SIMILAR TO THAT OF LAWYERS ALERT WHICH CARRIES REGULAR COLUMNS SUCH AS WHAT'S THE VERDICT AND READER'S EXCHANGE IN WHICH LAWYERS CAN SWAP INFORMATION ABOUT CASES MR SPENCER SAYS THE MAGAZINE WHICH HAS A CIRCULATION OF 5000 WILL BE REINCARNATED AS THE NEW BIWEEKLY BUT THE NEW PUBLICATION WILL BE BIGGER TWO TABLOIDNEWSPAPER SECTIONS AND AT 99 A YEAR WILL SELL FOR ABOUT HALF THE PRICE THE NEWSPAPER'S INITIAL CIRCULATION WILL BE 60000 DISTRIBUTED FREE AND THE PUBLISHER HOPES IT WILL HAVE 80000 SUBSCRIBERS IN FIVE YEARS SAYS CLINTON ALPHEN EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING SUBSCRIBERS WILL COME LARGELY FROM SUBURBS AND RURAL AREAS WE'RE NOT GOING TO SPEND AN ENORMOUS AMOUNT OF EFFORT IN MANHATTAN SAYS MR SPENCER SOME ADVERTISERS SAY THE NEWSPAPER'S PLANS ARE APPEALING THEY MAY HAVE FOUND A NICHE THAT'S UNSERVED SAID DON BLOHOWIAK DIRECTOR OF MARKETING SERVICES AT MATTHEW BENDER & CO A TIMES MIRROR CO UNIT THAT PUBLISHES LEGAL BOOKS AND SOFTWARE SOLO PRACTITIONERS AND ATTORNEYS AT SMALL FIRMS CERTAINLY DO SPEND MONEY HE SAID AND THEY AREN'T NECESSARILY REACHED BY OTHER NATIONAL PUBLICATIONS BUT MR BLOHOWIAK SAYS THAT THE NEWSPAPER'S TARGET AUDIENCE IS VERY HARRIED THEY HAVE NO TIME TO READ HE ADDS THAT HE IS ENCOURAGED BY WHAT HE KNOWS ABOUT THE PROPOSED NEWSPAPER BUT SAYS WHETHER IT IS COMPELLING TO READ REMAINS TO BE SEEN HE FIGURES IT WILL PROBABLY TAKE THREE TO SIX MONTHS TO DETERMINE WHETHER THE NEW PUBLICATION WILL SUCCEED LYNN JOHNSTON DIRECTOR OF AN AMERICAN BAR ASSOCIATION SPECIAL COMMITTEE ON SOLO PRACTIONERS AND SMALL LAW FIRMS SAYS LAWYERS WEEKLY FACES A TOUGH MARKETING CHALLENGE BECAUSE OF THE VARIETY OF LEGAL SPECIALTIES THAT SMALL FIRMS PRACTICE IN THEY ARE THE HARDEST GROUP TO REACH MS JOHNSTON SAYS IN ADDITION TO THE DIVERSE RANGE OF AREAS THEY PRACTICE IN SOLO PRACTITIONERS AND LAWYERS AT SMALL FIRMS ARE MORE TIGHTFISTED WHEN IT COMES TO EXPENSES SHE SAYS WHILE LARGER FIRMS PICK UP THE TAB FOR SUCH ITEMS AS LEGAL NEWSPAPERS WITH A SOLO PRACTITIONER IT'S A LOT HARDER BECAUSE IT IS COMING OUT OF HIS OR HER POCKET THE AMERICAN LAWYER AND THE NATIONAL LAW JOURNAL SAY THE NEW PUBLICATION IS GOING AFTER A GROUP OF LAWYERS THEY HAVEN'T SOUGHT SMALL FIRMS ESPECIALLY IN RURAL AND SUBURBAN AREAS AREN'T A MARKET THAT WE'VE EVER LOOKED AT SERIOUSLY SAYS STEVEN BRILL PRESIDENT AND EDITOR IN CHIEF OF THE AMERICAN LAWYER MAGAZINE HE SAYS THAT NEW YORK HAS MORE LAWYERS SOUTH OF 14TH STREET THAN THERE ARE IN MISSOURI AMERICAN LAWYER IS PART OF AMERICAN LAWYER MEDIA LP A PARTNERSHIP OWNED BY MR BRILL AND TIME WARNER INC MR BRILL ALSO SAYS THE ESTIMATED SIZE OF LAWYERS WEEKLY'S POTENTIAL AUDIENCE IS GREATLY EXAGGERATED HE SAYS THE ECONOMICS OF LAWYERS WEEKLY'S CIRCULATION GOALS ARE DAUNTING THE NATIONAL LAW JOURNAL PUBLISHED BY NEW YORK LAW PUBLISHING CO HAS A CIRCULATION OF ABOUT 40000 INCLUDING MANY SMALLFIRM LAWYERS SAYS JAMES FINKELSTEIN PRESIDENT AND PUBLISHER IT'S A TOUGH NICHE NATIONALLY TO GET SUBSCRIPTIONS AND ADVERTISING BUT ON THE OTHER HAND THEY ARE INTELLIGENT PEOPLE MR FINKELSTEIN SAYS CORDLESSTELEPHONE CONVERSATIONS ARE PROTECTED FROM UNAUTHORIZED EAVESDROPPING BY POLICE CONNECTICUT'S HIGHEST COURT RULED THE SUPREME COURT OF CONNECTICUT RULED THAT THE STATE'S WIRETAP LAW REQUIRES POLICE TO OBTAIN COURT APPROVAL BEFORE TAPPING A PRIVATE CORDLESSPHONE CONVERSATION DURING A CRIMINAL INVESTIGATION THE RULING REVERSES THE CONVICTIONS OF WILLIAM AND MARY MCVEIGH OF CROMWELL WHO WERE ARRESTED IN 1990 AFTER POLICE RECORDED THEM ALLEGEDLY NEGOTIATING TO SELL COCAINE THE RULING PUTS CONNECTICUT DECIDEDLY IN THE MINORITY OF STATE AND FEDERAL COURTS THAT HAVE RULED ON THE ISSUE ALONG WITH THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS AND A NEW YORK STATE APPELLATE COURT IN MANHATTAN THE EIGHTH US CIRCUIT COURT OF APPEALS IN ST LOUIS HAS RULED THAT UNRESTRICTED CORDLESSPHONE EAVESDROPPING IS PERMISSIBLE AND MOST STATE COURTS THAT HAVE RULED ON THE ISSUE HAVE FOLLOWED THAT COURT'S LEAD CONGRESS HAS AMENDED THE FEDERAL WIRETAPPING LAW TO ALLOW TAPPING OF CORDLESSPHONE CONVERSATIONS IN ITS RULING THIS WEEK JUSTICE DAVID M BORDEN WROTE THAT CONNECTICUT'S WIRETAP LAW WAS NOT LIMITED TO COMMUNICATIONS OVER TELEPHONE LINES AS THE PROSECUTION CONTENDED BUT RATHER TO ANY COMMUNICATION MADE IN WHOLE OR IN PART THROUGH THE TELEPHONE SYSTEM STEVEN D ECKER AN ATTORNEY WITH JACOBS GRUDBERG BELT & DOW IN NEW HAVEN WHICH REPRESENTED THE MCVEIGHS SAID CONNECTICUT'S LAW IS SIMILAR TO OTHER STATES AND HE BELIEVES WE'RE GOING TO SEE A TREND AWAY FROM ALLOWING POLICE TO RELY ON THE UNRESTRICTED USE OF CORDLESSPHONE CONVERSATIONS AS EVIDENCE IN CRIMINAL TRIALS STEVEN M SELLERS DIRECTOR OF OPERATIONS FOR THE OFFICE OF THE STATE'S ATTORNEY SAID CORDLESSPHONE CONVERSATIONS CAN EASILY AND INADVERTENTLY BE PICKED UP WHICH CREATES A DILEMMA FOR LAW ENFORCEMENT AGENTS WHO HAPPEN TO OVERHEAR CRIMINAL SCHEMES BEING DISCUSSED HE SAID NO DECISION HAD BEEN MADE YET ON WHETHER TO RETRY THE MCVEIGHS A TRIAL JUDGE HAS ORDERED A NEW TRIAL IN A LIBEL CASE THAT RESULTED IN A 6 MILLION JURY VERDICT AGAINST THE PHILADELPHIA INQUIRER THE CASE WAS BROUGHT BY PENNSYLVANIA SUPREME COURT JUSTICE JAMES T MCDERMOTT WHO ACCUSED THE NEWSPAPER OF DEFAMING HIM IN A 1983 SERIES ABOVE THE LAW JUSTICE MCDERMOTT DIED LAST YEAR AFTER A SEVENWEEK TRIAL IN 1990 THE JURY DECIDED THAT A REPRINT OF THE ARTICLES ISSUED BY THE INQUIRER WAS DEFAMATORY AND FALSE BUT THAT THE ORIGINAL WAS DEFAMATORY AND TRUE IN THE OPINION ORDERING THE NEW TRIAL JUDGE JOHN LAVELLE SAID THE TWO VERSIONS WERE VERY SIMILAR AND THAT THE JURY'S VERDICT WAS INCONSISTENT THE INQUIRER WHICH IS PART OF THE KNIGHTRIDDER NEWSPAPER CHAIN RECEIVED A BLOW IN ANOTHER BIG LIBEL CASE LAST YEAR WHEN A TRIAL JUDGE UPHELD A JURY VERDICT OF 25 MILLION IN COMPENSATORY DAMAGES AND 315 MILLION IN PUNITIVE DAMAGES AGAINST THE PUBLICATION THE LIBEL AWARD WAS SAID TO BE THE SECONDLARGEST EVER IN THE US WHO'S NEWS MARILYN QUAYLE JOINED KRIEG DEVAULT ALEXANDER & CAPEHART A 45ATTORNEY INDIANAPOLIS FIRM AS A PARTNER THE WIFE OF THE FORMER VICE PRESIDENT WILL PRACTICE CORPORATE INTERNATIONALBUSINESS AND HEALTHCARE LAW MRS QUAYLE 43 PRACTICED LAW FOR THREE YEARS IN THE 1970S BEFORE QUITTING WHEN DAN QUAYLE ENTERED POLITICS ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9302180166 930218 WHO'S NEWS MONKAUSTIN INC MONKAUSTIN INC FARMVILLE NC JAMES E JOHNSON JR WAS NAMED TO THE BOARD OF THIS TOBACCO MERCHANT AND PROCESSOR MR JOHNSON 63 YEARS OLD IS A PARTNER IN THE CHARLOTTE NC OFFICE OF THE LAW FIRM OF WOMBLE CARLYLE SANDRIDGE & RICE HIS APPOINTMENT INCREASES THE BOARD TO 11 MEMBERS 9302180165 930218 WHO'S NEWS MCKEE STEPS DOWN AS PRESIDENT CHIEF OF CANADIAN OCCIDENTAL CALGARY ALBERTA J ANGUS MCKEE 57 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CANADIAN OCCIDENTAL PETROLEUM LTD HE FILLED THESE POSITIONS FOR THE PAST 10 YEARS MR MCKEE WHO SAID HE WON'T SEEK REELECTION TO THE BOARD AT THE ANNUAL MEETING IN MAY GAVE NO REASON FOR HIS RESIGNATION HE SAID IN A STATEMENT THAT HE WILL CONTINUE TO ACT AS A CONSULTANT TO THE COMPANY HE COULDN'T BE REACHED FOR COMMENT CANADIAN OCCIDENTAL AN OIL AND GAS PRODUCTION CONCERN THAT IS 48OWNED BY OCCIDENTAL PETROLEUM CORP OF LOS ANGELES SAID IT WILL SEEK A NEW PRESIDENT AND CHIEF EXECUTIVE FROM OUTSIDE THE COMPANY IN THE MEANTIME THE COMPANY SAID THREE OF ITS SENIOR EXECUTIVES WILL LOOK AFTER ITS DAYTODAY AFFAIRS RAY IRANI CANADIAN OCCIDENTAL'S CHAIRMAN SAID THE COMPANY HAS GROWN SIGNIFICANTLY UNDER MR MCKEE'S LEADERSHIP THREE NEW PROJECTS DUE TO COME ONSTREAM IN THE NEXT 12 MONTHS WILL TRIPLE THE COMPANY'S ANNUAL OIL PRODUCTION HE SAID WHILE WE WILL MISS MR MCKEE'S ACTIVE PARTICIPATION IN THE COMPANY I AM MOST PLEASED THAT HE HAS AGREED TO CONTINUE TO WORK WITH ME DR IRANI SAID 9302180163 930218 INTERNATIONAL DAIICHI MUTUAL TRYING TO AVOID RATING SYSTEM BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CLAIMSPAYING ABILITY OF JAPAN'S SECONDBIGGEST LIFE INSURANCE COMPANY WAS DOWNGRADED BY RATING AGENCY STANDARD & POOR'S ASIA AT THE SAME TIME THE INSURER DAIICHI MUTUAL LIFE INSURANCE CO DISCLOSED THAT IT HAD PREVIOUSLY MADE A FORMAL REQUEST THAT S&P AND OTHER SERVICES STOP RATING THE COMPANY THE CONSEQUENCES FOR DAIICHI MUTUAL OF WITHDRAWING FROM RATINGS ARE QUITE SERIOUS SAID S&P SPOKESWOMAN SHINANO MORITA WHO ADDED THAT S&P HAD NEVER HAD A WITHDRAWAL REQUEST FROM A MAJOR JAPANESE FINANCIAL INSTITUTION THIS RATING IS USED BY FOREIGN CUSTOMERS TO DETERMINE WHETHER THEY SHOULD DEAL WITH THE COMPANY OR NOT IN AREAS LIKE REINSURANCE NEITHER THE DOWNGRADE TO DOUBLEAPLUS FROM TRIPLEA NOR THE WITHDRAWAL FROM S&P'S RATINGS LIST IS LIKELY TO HURT DAIICHI MUTUAL'S JAPANESE OPERATIONS ANALYSTS SAID BUT THEY AGREED THAT INTERNATIONAL OPERATIONS COULD BE HARMED JAPANESE LIFE INSURANCE COMPANIES WHICH AREN'T PUBLICLY TRADED ARE THOUGHT TO BE SUFFERING FROM THE FALL IN DOMESTIC LAND AND SHARE PRICES AND FROM A FLOOD OF LOANS THAT HAVE GONE BAD S&P SAID ITS DOWNGRADE OF DAIICHI MUTUAL REFLECTED AN EARNINGS AND CAPITAL DETERIORATION AND THE EXPECTATION THAT THE OPERATING ENVIRONMENT WILL REMAIN WEAK HIDECHIKA TAKASAKA A SPOKESMAN FOR DAIICHI MUTUAL SAID THE INSURER INFORMED S&P OF ITS INTENTION TO WITHDRAW FROM RATINGS LONG BEFORE THE DOWNGRADE DAIICHI IS WITHDRAWING BECAUSE THE PURPOSE OF HAVING A RATING WAS TO MAKE OUR COMPANY WELLKNOWN WHEN WE STARTED TO INCREASE OVERSEAS INVESTMENT AND THAT GOAL HAS BEEN REACHED HE SAID HE SAID DAIICHI HAS ALSO ASKED MOODY'S JAPAN KK TO STOP ITS RATINGS OF THE INSURER MOODY'S JAPAN COULDN'T BE REACHED FOR COMMENT BUT IS BELIEVED STILL TO BE MONITORING DAIICHI IN ANNOUNCING THE DOWNGRADE S&P SAID DAIICHI ENJOYS AN EXCELLENT MARKET FRANCHISE AND STRONG DISTRIBUTION NETWORK AS WELL AS FAVORABLE OPERATING EFFICIENCIES THE QUALITY OF DAIICHI'S BOND AND LOAN PORTFOLIOS REMAINS STRONG BUT ANALYSTS SAID JAPANESE LIFE INSURERS SUCH AS DAIICHI MUTUAL ARE UNDER GROWING PRESSURE THEY'VE BEEN PAYING HIGH DIVIDENDS FOR YEARS ON SAVINGS POLICIES THEY'VE ISSUED TO CONSUMERS SAID DAVID SNODDY AN ANALYST AT JARDINE FLEMING SECURITIES LTD NOW HOWEVER ASSETS AREN'T GROWING AS THEY USED TO THE DOWNGRADE IS PROBABLY BASED ON THAT CASHFLOW PROBLEM 9302180162 930218 FINANCING BUSINESS SEAGRAM CO SEAGRAM CO MONTREAL SAID IT CALLED FOR REDEMPTION ITS 100 MILLION OF 8 1/2 BONDS DUE 1996 ON APRIL 15 THE BONDS WILL BE REDEEMED AT PAR PLUS A 1 PREMIUM 9302180161 930218 US TREASURY TO RAISE TOTAL OF 1375 BILLION WASHINGTON THE TREASURY PLANS TO RAISE A TOTAL OF 1375 BILLION IN FRESH CASH NEXT WEEK THE TREASURY SAID IT WILL SELL 1525 BILLION IN TWOYEAR NOTES TUESDAY AND 11 BILLION IN FIVEYEAR NOTES WEDNESDAY PART OF THE PROCEEDS WILL BE USED TO REDEEM 1251 BILLION IN MATURING TWO AND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED MARCH 1 AND WILL MATURE FEB 28 1995 THE NEW FIVEYEAR NOTES WILL BE DATED MARCH 1 AND WILL MATURE FEB 28 1998 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827J86 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827J94 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EST TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EST WEDNESDAY COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9302180160 930218 TECHNOLOGY & HEALTH SCIENTISTS MAKE MALARIA BREAKTHROUGH ACHIEVING ACCESS TO PARASITE'S GENES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL US SCIENTISTS FINALLY BROKE INTO THE GENES OF THE MALARIA PARASITE POSSIBLY OPENING THE WAY TO NEW WEAPONS AGAINST ONE OF THE WORLD'S MAJOR SCOURGES RESEARCHERS IN NEW YORK SAID THAT FOR THE FIRST TIME THEY HAVE CLONED MADE TESTTUBE COPIES OF TWO OF THE 14 CHROMOSOMES THAT CONTAIN THE GENES OF THE MICROBE THAT MOSQUITOES TRANSMIT TO HUMANS TO CAUSE MALARIA THE SLOANKETTERING INSTITUTE SCIENTISTS ALSO HAVE CREATED MAPS OF THE CHROMOSOMES SHOWING GENETIC LANDMARKS THEY EXPECT THE MAPS TO LEAD THEM EVENTUALLY TO THE GENES THAT MAKE THE MALARIA PARASITE SUCH A WORLDWIDE MENACE THE LABORATORY FEAT ALREADY HAS BROUGHT SCIENCE CLOSER TO THE GENE THAT ENDOWS A GROWING NUMBER OF THE MALARIA MICROBES WITH RESISTANCE TO MALARIA DRUGS SAID MOLECULAR BIOLOGIST JEFFREY V RAVETCH HEAD OF THE THREEMEMBER TEAM THAT MADE THE ADVANCE EVENTUALLY DR RAVETCH SAID THE RESEARCHERS HOPE TO IDENTIFY OTHER KEY GENES SUCH AS THOSE THAT ALLOW THE PARASITE TO THRIVE IN HOSTS AS DIVERSE AS MOSQUITOES AND HUMANS MALARIA STRIKES AN ESTIMATED 300 MILLION PEOPLE WORLDWIDE EVERY YEAR ONE MILLION TO THREE MILLION PEOPLE MOSTLY CHILDREN DIE EACH YEAR OF THE INTERMITTENT CHILLS AND FEVERS ANEMIA BLOOD DISORDERS AND ORGAN DAMAGE THAT THE PARASITE TRIGGERS DURING ITS MYSTERIOUS LIFE CYCLE IN THE RED BLOOD CELLS THE GENETIC ADVANCE REPORTED IN THIS WEEK'S ISSUE OF THE JOURNAL NATURE INVOLVES THE PARASITE PLASMODIUM FALCIPARIUM ONE OF THE FOUR MALARIACAUSING SPECIES OF PROTOZOA THAT MOSQUITOES CARRY FROM ONE HUMAN TO ANOTHER THE ILLNESS CAUSED BY P FALCIPARIUM IS THE MOST SEVERE FORM OF MALARIA UNTIL NOW SCIENTISTS HAVE BEEN THWARTED IN THEIR ATTEMPTS TO FIND THE PARASITE'S MOST VULNERABLE POINTS BECAUSE THEY LACKED ACCESS TO THE MICROBE'S GENES THE GENES HOLD SECRETS SUCH AS HOW THE PARASITE USES A SEXUAL METHOD OF REPRODUCTION IN THE STOMACH OF THE MOSQUITO AND AN ASEXUAL METHOD IN THE RED BLOOD CELLS OF HUMANS DR RAVETCH EXPLAINED THIS STRANGE APPROACH TO REPRODUCTION PREVENTS SCIENTISTS FROM CROSSBREEDING THE PARASITES IN THE TEST TUBE THE CLASSICAL APPROACH TO IDENTIFYING GENES THE SCIENTISTS ALSO FOUND IT IMPOSSIBLE TO LOCATE THE PARASITE'S GENES WITH SOME OF THE TOOLS BEING USED TO IDENTIFY AND LOCATE HUMAN GENES IN THE HUMAN GENOME PROJECT A KEY FIRST STEP IN SUCH MAPPING EFFORTS IS TO TAKE THE TINY SAUSAGESHAPED CHROMOSOMES THAT CONTAIN THE GENES BREAK THEM INTO SEGMENTS AND CLONE EACH SEGMENT BY INSERTING IT INTO A LAB MICROBE SUCH AS A BACTERIUM THAT COPIES THE SEGMENT AS IT REPRODUCES IDENTIFIABLE LANDMARKS ON EACH SEGMENT ALLOW SCIENTISTS EVENTUALLY TO TRACK DOWN THE LOCATION OF A WANTED GENE SCIENTISTS HAVE BEEN STYMIED IN MAPPING THE MALARIA MICROBE'S GENES BECAUSE THE CHROMOSOME SEGMENTS WOULD DISINTEGRATE WHEN INSERTED INTO LAB BACTERIA DR RAVETCH SAID THIS PROBLEM HAS BEEN OVERCOME DR RAVETCH AND HIS COLLEAGUES MICHAEL LANZER AND DERIK DE BRUIN REPORTED IN NATURE THEY DESCRIBED HOW THEY HAD TAKEN ONE OF THE PARASITE'S CHROMOSOMES CHROMOSOME NUMBER TWO AND BROKEN IT INTO 18 SEGMENTS EACH OF WHICH HAS BEEN CLONED IN LAB YEAST THEY'VE IDENTIFIED 31 GENETIC LANDMARKS ALONG THE CHROMOSOME THAT NOW CAN BE USED TO GUIDE RESEARCHERS TO INDIVIDUAL GENES IN AN INTERVIEW DR RAVETCH SAID THE SLOANKETTERING RESEARCHERS ALSO HAVE MAPPED CHROMOSOME NUMBER SEVEN THIS CHROMOSOME IS OF MAJOR INTEREST BECAUSE IT'S KNOWN THAT SOMEWHERE ALONG THE CHROMOSOME THERE'S A GENE THAT THE PARASITE CAN USE TO RESIST THE EFFECTS OF CHLOROQUINE THE DRUG THAT'S THE MOST WIDELY USED PREVENTIVE AND TREATMENT FOR MALARIA THE SPREAD OF THIS GENE FROM SOUTHEAST ASIA TO OTHER TROPICAL AREAS IS ALARMING WORLD HEALTH OFFICIALS NO WAY HAS YET BEEN FOUND TO COUNTERACT IT DR RAVETCH SAID THE SEARCH FOR THE CHLOROQUINERESISTANCE GENE IS BEING NARROWED TO A PARTICULAR SPOT ON THE CHROMOSOME AND WE'RE HOPEFUL THE GENE WILL BE FOUND SOON WE EXPECT TO HAVE THE COMPLETE GENOME OF THE PARASITE MAPPED WITHIN THREE YEARS DR RAVETCH SAID A CONSORTIUM HAS BEEN FORMED BY THE SLOANKETTERING LAB TWO LABS IN THE UK AND TWO IN AUSTRALIA TO DIVIDE UP THE MAPPING TASK BY HAVING EACH LAB CONCENTRATE ON TWO OR THREE OF THE 14 CHROMOSOMES HE SAID 9302180159 930218 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 5/8 HIGH 2 LOW 1 NEAR CLOSING BID 2 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 308 30 TO 59 DAYS 310 60 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 320 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 318 30 DAYS 319 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 266 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 303 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 310 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 304 90 DAYS 305 120 DAYS 309 150 DAYS 312 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 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 TUESDAY FEBRUARY 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 293 13 WEEKS 308 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 737 60 DAYS 748 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4375 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 741 60 DAYS 750 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 535 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 284 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302180158 930218 CFTC CHARGES NEW YORK MERC CHAIRMAN WITH CIVIL VIOLATIONS OF COMMODITY LAWS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE COMMODITY FUTURES TRADING COMMISSION CHARGED Z LOU GUTTMAN THE CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE WITH CIVIL VIOLATIONS OF COMMODITY LAWS CAPPING A LENGTHY INVESTIGATION THE MOVE MARKS THE FIRST TIME THE CFTC HAS CHARGED THE CHAIRMAN OF A MAJOR COMMODITY EXCHANGE WITH BREAKING COMMODITY LAWS THE NEW YORK MERC IS THE NATION'S THIRD LARGEST COMMODITY EXCHANGE AND THE WORLD'S BIGGEST MARKET FOR OIL AND GASOLINE FUTURES LAWYERS SAY THAT IF THE CHARGES ARE UPHELD BY A CFTC ADMINISTRATIVE LAW JUDGE MR GUTTMAN WOULD BE BARRED FROM SERVING AS EXCHANGE CHAIRMAN FOR AT LEAST THREE YEARS HE COULD ALSO FACE FINES AND SUSPENSION OR REVOCATION OF TRADING PRIVILEGES LAWYERS SAY MR GUTTMAN IS UP FOR REELECTION NEXT MONTH IN A SEVENCOUNT ADMINISTRATIVE COMPLAINT FILED YESTERDAY THE CFTC CHARGED MR GUTTMAN AND TWO BROKERS HAROLD J MAGID AND GARY GLASS WITH NONCOMPETITIVE TRADING AND OTHER VIOLATIONS IN THE SUGAR OPTIONS PIT ON THE COFFEE SUGAR & COCOA EXCHANGE FROM MARCH THROUGH OCTOBER 1989 THE CFTC COMPLAINT ALSO CHARGED GERALD INC THE CLEARING FIRM FOR THE GUTTMAN AND MAGID ACCOUNT WITH FAILING TO MEET FINANCIAL REQUIREMENTS AND FILING FALSE FINANCIAL STATEMENTS WITH THE CFTC GERALD WITHOUT ADMITTING OR DENYING THE ALLEGATIONS HAS AGREED TO PAY A 65000 PENALTY AND TO REFRAIN FROM FURTHER COMMODITY LAW VIOLATIONS IN A STATEMENT MR GUTTMAN'S ATTORNEY BARRY A BOHRER SAID THAT HE IS CONFIDENT THAT THE CHARGES AGAINST HIS CLIENT ARE UNFOUNDED AND UNPRECEDENTED HE ADDED THAT HE IS CONFIDENT THAT HIS CLIENT WILL BE FULLY VINDICATED MR MAGID'S ATTORNEY DAVID BERNFELD WAS ON VACATION AND COULD NOT BE REACHED MR GLASS COULD NOT BE CONTACTED MR GUTTMAN A FORMER PLATINUM TRADER IS ONE OF THE MOST POWERFUL FIGURES IN THE COMMODITY INDUSTRY RISING FROM THE MERC'S TUMULTUOUS TRADING FLOOR WHERE HE WAS KNOWN FOR HIS AGGRESSIVE TRADING STYLE THE 42YEAROLD MR GUTTMAN HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OF THE MERC SINCE 1988 THE CFTC ALLEGES THAT BEGINNING IN LATE 1988 OR EARLY 1989 GERALD PROVIDED SEVERAL MILLIONS OF DOLLARS IN FINANCING FOR COMMODITY OPTIONS TRADING IN THE JOINT ACCOUNTS OF MESSRS GUTTMAN AND MAGID AND IN THE PERSONAL ACCOUNTS OF MR MAGID AT THE SAME TIME GERALD REQUESTED THAT THE FINANCING IT EXTENDED TO MESSRS GUTTMAN AND MAGID BE REDUCED OR ELIMINATED ON THE LAST TRADING DAY OF EACH MONTH SINCE MID1988 GERALD HAD BEEN TOLD BY THE CHICAGO MERCANTILE EXCHANGE TO FILE MONTHLY STATEMENTS ON ITS CAPITAL POSITION OFTEN THE EXCHANGE WILL REQUIRE CLEARING FIRMS TO FILE SUCH MONTHLY REPORTS IF THERE IS ANY FEAR THAT THE FIRM'S CAPITAL BASE IS TOO LOW FROM MARCH TO OCTOBER 1989 THE COMPLAINT ALLEGES THAT THE ACCOUNTS HAD EQUITY DEFICITS RANGING FROM SEVERAL HUNDRED THOUSAND DOLLARS TO SEVERAL MILLION DOLLARS TO ELIMINATE OR REDUCE THESE DEFICITS THE CFTC ALLEGES THAT MR MAGID ACTING FOR MR GUTTMAN AND HIMSELF ENTERED INTO A SERIES OF NONCOMPETITIVE TRADES BY SELLING OPTIONS ON SUGAR FUTURES TO MR GLASS ON THE LAST TRADING DAY OF ONE MONTH AND BUYING THEM BACK FROM HIM ON THE FIRST TRADING DAY OF THE NEXT MONTH THE NONCOMPETITIVE OR PREARRANGED TRADES WOULD GIVE THE GUTTMAN AND MAGID TRADING ACCOUNT THE APPEARANCE OF HAVING ENOUGH EQUITY OR CAPITAL TO CARRY LARGE FUTURES AND OPTIONS POSITIONS TRADERS ARE REQUIRED TO MEET SPECIFIC CAPITAL LIMITS DEPENDING ON THE SIZE OF THEIR TRADING POSITIONS NONCOMPETITIVE TRADES ARE ILLEGAL BECAUSE THEY DON'T ENTAIL ANY INVESTMENT RISK THE CFTC COMPLAINT ALLEGES THAT MR MAGID THROUGH THESE ILLEGAL TRADES RAISED AS MUCH AS 4402944 OF EQUITY ON ONE OCCASION THE CFTC ALLEGES THAT MR MAGID WAS ACTING FOR MR GUTTMAN MAKING MR GUTTMAN LIABLE FOR THE ALLEGATIONS AS A PRINCIPAL 9302180157 930217 CREDIT MARKETS PRICES OF TREASURY NOTES RISE AS INVESTORS STAGE FLIGHT TO QUALITY AHEAD OF CLINTON'S ADDRESS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHILE PRESIDENT CLINTON'S PLANS FOR INCREASED TAXES WERE POISON TO THE STOCK MARKET YESTERDAY THE PRICES OF MANY TREASURY NOTES EKED OUT MODEST GAINS ACCORDING TO TRADERS INCREASED TAXES ON CONSUMERS AND CORPORATIONS COULD HAVE A NEGATIVE EFFECT ON THE ECONOMY THUS BRAKING ANY ECONOMIC GROWTH THAT MIGHT HAVE LED TO INCREASED INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF THEIR HOLDINGS WHICH HAVE A FIXED RATE OF RETURN WITH THE STOCK MARKETS SELLING OFF ON THE TAX NEWS THE TREASURY MARKET BENEFITED FROM A SOCALLED FLIGHT TO QUALITY AS INVESTORS MOVED THEIR MONEY INTO THE INTERMEDIATE SECTOR OF THE TREASURY MARKET DURING TIMES OF UNCERTAINTY INVESTORS WILL OFTEN MOVE THEIR MONEY INTO MORE CONSERVATIVE INVESTMENTS LIKE TREASURY BONDS THE INCREASED DEMAND HELPED PUSH THE PRICES OF TREASURYS MATURING IN TWO TO 10 YEARS UP AS MUCH AS 1/4 POINT THE BENCHMARK 30YEAR TREASURY BOND WHICH HAD JUMPED AS MUCH AS 3/8 POINT IN EARLY TRADING ACTUALLY ENDED THE DAY WITH A LOSS OF NEARLY 1/4 POINT OR NEARLY 250 FOR A BOND WITH 1000 FACE VALUE AT 99 24/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 714 FROM 712 ON FRIDAY THE FIVEYEAR NOTE HOWEVER ROSE 1/4 POINT TO 100 18/32 TO YIELD 548 DOWN FROM 554 ON FRIDAY BOND TRADERS SAID THAT THE MARKET HAS ALREADY DISCOUNTED THE POSSIBILITY THAT MR CLINTON WOULD PUSH FOR AGGRESSIVE MOVES TO REDUCE THE FEDERAL BUDGET DEFICIT AS A RESULT THE PRESIDENT'S TOUGH TALK ON TELEVISION MONDAY EVENING ABOUT HOW THE GROWING DEFICIT MADE TAX INCREASES NECESSARY EVEN FOR THE MIDDLE CLASS ELICITED LITTLE IN THE WAY OF A SUSTAINED REACTION FROM THE BOND MARKETS THE PRICES OF TAXEXEMPT MUNICIPAL BONDS WHICH ARE LIKELY TO SEE INCREASED DEMAND AS HIGHINCOME INVESTORS LOOK FOR WAYS TO REDUCE THEIR TAX PAYMENTS REACTED LITTLE TO MR CLINTON'S ADDRESS INCREASED TAXES FOR HIGHINCOME INVESTORS HAVE ALREADY BEEN FACTORED INTO THE MUNICIPAL BOND MARKET SAID THOMAS DOE AN ANALYST AT MUNICIPAL MARKET DATA A UNIT OF THOMSON FINANCIAL SERVICES THE COMING TAX INCREASES HAVE ALREADY BEEN WELL ADVERTISED AS THE MUNICIPAL MARKET BEGAN TO RALLY LAST FALL AS MR CLINTON'S ELECTION BECAME IMMINENT SAID MR DOE YESTERDAY FOR EXAMPLE THE BOND BUYER'S INDEX OF 40 LONGTERM MUNICIPAL BONDS ROSE LESS THAN 1/4 POINT FROM FRIDAY TO 99 24/32 FOR A YIELD OF 615 DOWN FROM 618 YESTERDAY'S SLIGHT PRICE INCREASES HOWEVER DON'T MEAN THAT BOND INVESTORS ARE COMPLACENT ABOUT MR CLINTON'S SCHEDULED ADDRESS TO A JOINT SESSION OF CONGRESS THIS EVENING TRADERS YESTERDAY SAID THAT THE BOND MARKETS HAVE GIVEN MR CLINTON THE BENEFIT OF THE DOUBT SO FAR BY PUTTING HOPE IN HIS PROMISES TO SLASH THE FEDERAL BUDGET DEFICIT BUT IF HE DOESN'T OFFER A CLEAR AND CONCISE PLAN ON HOW THIS WILL BE ACCOMPLISHED THE BOND MARKET REACTION IS LIKELY TO BE SWIFT AND FURIOUS MEAD L BRIGGS TOOK ISSUE WITH MR CLINTON'S COMMENTS DURING THE DAY THAT THE RISE IN SOME TREASURY PRICES WAS A VERY POSITIVE RESPONSE TO HIS TELEVISED SPEECH MONDAY EVENING MR BRIGGS WHO IS HEAD OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC SAID THAT YESTERDAY'S PRICE INCREASES WERE NOT AN ENDORSEMENT OF HIS PROGRAM BUT A REACTION TO PROPOSED TAX INCREASES THAT ARE LIKELY TO SLOW THE ECONOMY WE HAVEN'T SEEN THE NUMBERS YET FOR MR CLINTON'S ECONOMIC PLAN SAID MR BRIGGS IT'S GOOD NEWS FOR THE BOND MARKET IF THE NUMBERS COME OUT TOMORROW AND MAKE SENSE WITH NO SMOKE AND MIRRORS ACCORDING TO BRYAN R SCARFONE A DIRECTOR AT SBC GOVBERNMENT SECURITIES INC A UNIT OF SWISS BANK ALL CLINTON HAS TO DO IS PRESERVE WHAT HE'S ALREADY DONE AND SAID MR SCARFONE SAID HE DOESN'T BELIEVE THAT MR CLINTON IS GOING TO SAY ANYTHING VERY DIFFERENT FROM WHAT HE HAS ALREADY LEAKED TO THE MARKETS IN THE PAST MONTH PRESSURING PRICES OF 30YEAR BONDS YESTERDAY AFTERNOON WAS TALK OF A LARGE HEDGE FUND PUTTING ON A CURVESTEEPENING TRADE WHEN SHORT SECURITIES OUTPERFORM LONGERDATED ISSUES THAT CREATES A WIDENING OF THE YIELD SPREAD BETWEEN THE TWO ENDS OF THE MATURITY SPECTRUM WHICH IS KNOWN AS A STEEPER YIELD CURVE TO PROFIT FROM A STEEPER CURVE A PLAYERS SELL THE LONG END AND BUYS SHORTTERM SECURITIES PART OF THE ACTION THAT WE'VE SEEN IS A TUG OF WAR NOT ONLY WITH THE DIRECTION OF THE MARKET BUT ALSO WITH THE SHAPE OF THE YIELD CURVE SAID LAWRENCE N LEUZZI MANAGING DIRECTOR OF FIXED INCOME AT SG WARBURG & CO THE END RESULT YESTERDAY WAS THE SPREAD THE YIELD BETWEEN THE TWOYEAR NOTE AND 30YEAR BOND WIDENED TO 306 PERCENTAGE POINTS FROM 297 PERCENTAGE POINTS AT THE END OF FRIDAY'S SESSION THE BOND MARKETS WERE CLOSED MONDAY IN OBSERVANCE OF THE PRESIDENTS DAY HOLIDAY THE ONLY MAJOR ECONOMIC DATA DUE OUT TODAY WILL BE JANUARY HOUSING STARTS THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKET REPORT CALLS FOR STARTS TO SLIP 13 TO A 1285 MILLIONUNIT ANNUAL RATE ALSO TODAY THE TREASURY DEPARTMENT IS SCHEDULED TO ANNOUNCE THE SIZE OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS MARKET EXPECTATIONS CENTER ON THE TREASURY HOLDING THE AMOUNT OF TWOYEAR NOTES UNCHANGED FROM LAST MONTH AT 1525 BILLION WHILE CUTTING THE FIVEYEAR OFFERING 500 MILLION TO 110 BILLION THE MARKET ALL BUT IGNORED THE JOHNSON REDBOOK SERVICE REPORT YESTERDAY THAT SHOWED CHAIN AND DEPARTMENT STORE SALES UP 63 IN THE FIRST TWO WEEKS OF FEBRUARY FROM JANUARY JOHNSON REDBOOK WHICH IS AN AFFILIATE OF LYNCH JONES & RYAN INC SAID THE GAIN WAS EXAGGERATED BY A DOWNWARD REVISION TO JANUARY'S LEVEL CAUSED BY CHANGES TO THE SEASONAL ADJUSTMENT FACTORS THE POLITICAL APPEARANCES ARE TAKING CENTER STAGE RATHER THAN THE DATA SAID KEVIN FLANAGAN A MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC ANOTHER MAJOR EVENT FOR THE MARKET FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S SEMIANNUAL HUMPHREYHAWKINS TESTIMONY HAS BEEN RESCHEDULED TO FRIDAY FROM TOMORROW MEANWHILE YESTERDAY THE TREASURY SOLD 2333 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION UP SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 293 FOR A COUPONEQUIVALENT YIELD OF 299 COMPARED WITH 294 AND 300 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 308 FOR A COUPONEQUIVALENT YIELD OF 317 COMPARED WITH 309 AND 318 AT 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 COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB 18 THE 13WEEK BILLS MATURE MAY 20 1993 AND THE 26WEEK BILLS MATURE AUG 19 1993 A NUMBER OF NIMBLE BORROWERS SOLD LONGERDATED DEBT EARLY YESTERDAY TAKING ADVANTAGE OF A BRIEF DIP IN LONGTERM INTEREST RATES AMONG THE COMPANIES SELLING BONDS YESTERDAY WAS MOBIL CORP THE ENERGY CONCERN OFFERED 250 MILLION OF 40YEAR DEBENTURES PRICED AS 7625 SECURITIES TO YIELD 771 OTHER BORROWERS INCLUDED CATERPILLAR INC SALOMON INC MERRILL LYNCH & CO AND PNC FUNDING CORP A UNIT OF PNC BANK CORP ALSO INCLUDED IN YESTERDAY'S 26 BILLION TALLY WAS A 1 BILLION OFFERING OF ONEYEAR BANK NOTES BY MORGAN GUARANTY TRUST CO A UNIT OF JP MORGAN & CO THE BULK OF THE SALES OCCURRED EARLY IN THE DAY BEFORE LONGTERM RATES BEGAN TO SLIDE SEASONED BONDS TRACKED TREASURYS THROUGHOUT THE SESSION MOST INTERMEDIATE MATURITY HIGHGRADE BONDS ENDED 1/8 POINT HIGHER WHILE LONGERDATED ISSUES FELL 1/8 POINT INTERMEDIATE ISSUES ROSE PARTLY BECAUSE SOME ASSET ALLOCATION MUTUAL FUNDS WERE SHIFTING OUT OF EQUITY INTO DEBT TRADERS SAID JUNK BONDS ENDED 1/8 POINT LOWER REVERSING EARLY GAINS TRADERS ATTRIBUTED THE DROP TO FALLING EQUITY PRICES BUT VOLUME WAS THIN THEY ADDED SUGGESTING THAT INVESTOR DEMAND FOR HIGHERYIELDING BONDS WON'T BE HURT BY YESTERDAY'S SELLOFF IN STOCKS AS TREASURY YIELDS FELL EARLY IN THE SESSION IN REACTION TO MR CLINTON'S NATIONWIDE ADDRESS MONDAY NIGHT UNDERWRITERS SAID THEY BEGAN TO ADVISE COMPANIES TO SELL DEBT NOW ARGUING THAT RATES COULD RISE SOON AS DEBATE OVER MR CLINTON'S ECONOMIC PLAN INTENSIFIES A FEW COMPANIES FOUND THE ARGUMENT COMPELLING AFTER LOOKING AT THE MARKET FOR WEEKS MOBIL TESTED THE LONG END OF THE MARKET WITH ITS ISSUE OF 40YEAR DEBENTURES NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 060 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PRICES OF MUNICIPAL BONDS ENDED SLIGHTLY HIGHER AMONG ACTIVELY TRADED ISSUES DENVER AIRPORT'S 675 REVENUE BONDS OF 2022 FINISHED 1/8 HIGHER AT 99 3/8 TO YIELD 678 YESTERDAY'S LARGEST OFFERING WAS THE NEW YORK METROPOLITAN TRANSPORTATION AUTHORITY'S 41589 MILLION ISSUE OF SERIES M TRANSIT FACILITIES REVENUE BONDS PRICED BY A FIRST BOSTON CORP GROUP THE ISSUE SOLD QUICKLY YIELDS DURING REPRICING RANGED FROM 510 IN 1998 TO 6191 IN 2014 COMPARED WITH AN EARLIER RANGE OF 510 IN 1998 TO 6234 IN 2014 THE SERIAL BONDS 19992006 ARE INSURED BY AMBAC INDEMNITY CO AND THE SERIAL BONDS 20072008 AND 2011 ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO THOSE SERIAL BONDS ARE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE SERIAL BONDS OF 1998 AND 2014 WERE RATED BAA BY MOODY'S AND TRIPLEBPLUS BY S&P CORP FEARS OF A THIRD HUGE REFINANCING WAVE ARE KEEPING MORTGAGE PARTICIPANTS ON EDGE BUT DIVERGENT OPINIONS ON WHAT WILL ACTUALLY HAPPEN IS MAKING FOR SOME ACTIVE TRADING PARTICIPANTS SAID RATES HAVE BEEN DRIVEN LOW ENOUGH OVER THE PAST YEAR TO CAUSE MOST HOMEOWNERS TO REFINANCE ALREADY THE CONCERN NOW IS THAT RATES WILL BE DRIVEN LOW ENOUGH TO CAUSE HOMEOWNERS WITH NEW LOANS TO REFINANCE MEANING INVESTORS IN SECURITIES BACKED BY LOANS WITH COUPONS AS LOW AS 85 TO 8 COULD SEE THEIR INVESTMENTS DISAPPEAR IN THE MEANTIME PRICES OF MORTGAGE SECURITIES IN THE SECONDARY MARKET ARE HOLDING STEADY THAT'S LARGELY BECAUSE SECURITIES ACROSS THE CURVE ARE IN DEMAND DEALERS ARE SCOOPING UP CURRENT COUPON PASSTHROUGHS TO CREATE COLLATERALIZED MORTGAGE OBLIGATIONS AND INVESTORS ARE SEEKING PREMIUM COUPON PASSTHROUGHS THAT WILL NOT PREPAY IN ANOTHER REFINANCING WAVE PARTICIPANTS SAY IN SECONDARY TRADING PRICES OF CURRENT COUPON MORTGAGE SECURITIES FOR MARCH DELIVERY FINISHED LITTLE CHANGED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES ENDED 2/32 HIGHER AT 102 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES ENDED UNCHANGED AT 101 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES ENDED UP 1/32 AT 101 22/32 NEARLY 14 BILLION IN NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED INCLUDING 795 MILLION IN REMICS BACKED BY NEW 30YEAR 75 COLLATERAL 9302180156 930218 WHO'S NEWS HUFFY CORP HUFFY CORP DAYTON OHIO GARY E MORIN 43 YEARS OLD PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S HUFFY BICYCLE CO UNIT WAS NAMED EXECUTIVE VICE PRESIDENT OF THE CORPORATION MR MORIN WILL BE SUCCEEDED BY BARRY J RYAN 43 WHO CURRENTLY SERVES AS PRESIDENT AND GENERAL MANAGER OF HUFFY SPORTS CO ANOTHER UNIT MR RYAN WILL BE SUCCEEDED BY DAVID A ALLEN 39 WHO IS CURRENTLY VICE PRESIDENT OF NEW PRODUCT AND BUSINESS DEVELOPMENT AT HUFFY SPORTS CO THE APPOINTMENTS ARE EFFECTIVE MONDAY HUFFY IS A MANUFACTURER AND SUPPLIER OF BICYCLES BASKETBALL BACKBOARDS LAWN AND GARDEN TOOLS JUVENILE PRODUCTS AND INVENTORY ASSEMBLY AND MERCHANDISING SERVICES 9302180155 930218 INTERNATIONAL CHINESE INDUSTRIAL OUTPUT UP BEIJING CHINA'S DAILY INDUSTRIAL OUTPUT IN JANUARY WAS UP MORE THAN 21 FROM A YEAR EARLIER AS THE NATION CONTINUED ITS YEARLONG ECONOMIC BOOM THE GOVERNMENT SAID PRICES ALSO WERE UP SUBSTANTIALLY THE COST OF LIVING FOR URBAN RESIDENTS CLIMBED 147 FROM JANUARY 1992 AND MORE THAN 4 FROM DECEMBER THE STATE XINHUA NEWS AGENCY QUOTED THE STATE STATISTICAL BUREAU AS REPORTING 9302180154 930218 BUSINESS BRIEF HP POSTS BETTERTHANEXPECTED NET FOR ITS 1ST QUARTER CITES STRONG SALES PALO ALTO CALIF HEWLETTPACKARD CO CITING STRONG SALES OF PRODUCTS SUCH AS PRINTERS AND WORKSTATIONS POSTED BETTERTHANEXPECTED FISCAL FIRSTQUARTER NET INCOME BUT CONTINUED TO SEE GROSS PROFIT MARGINS ERODED AS IT SHIFTS BUSINESS TO HIGHVOLUME PRODUCTS THE COMPUTER CONCERN SAID PROFIT IN THE QUARTER ENDED JAN 31 WAS 261 MILLION OR 103 A SHARE COMPARED WITH A YEARAGO NET LOSS OF 30 MILLION OR 12 CENTS A SHARE THE FIRSTQUARTER EARNINGS WERE HIGHER THAN MOST ANALYSTS' ESTIMATES WHICH AVERAGED 96 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC HP'S SHARES ROSE TO 7225 A SHARE YESTERDAY UP 4625 ON THE NEW YORK STOCK EXCHANGE REVENUE ROSE 18 TO 457 BILLION FROM 386 BILLION MORE SIGNIFICANTLY ANALYSTS SAID HP POSTED 24 GROWTH IN ORDERS WHICH ARE A GAUGE OF FUTURE REVENUE BECAUSE THE SALES GENERATED BY ORDERS ARE OFTEN REFLECTED IN FUTURE QUARTERS ORDERS FOR THE QUARTER WERE A RECORD 52 BILLION COMPARED WITH 42 BILLION IN THE YEAREARLIER QUARTER ORDERS FROM OUTSIDE THE US GREW 28 TO 31 BILLION WITH PARTICULARLY STRONG INCREASES IN ENGLAND AND FRANCE WHERE ORDERS WERE SLOWER LAST YEAR AND ORDERS IN JAPAN GREW 8 THE FIRST RISE IN MANY QUARTERS HP SAID BUT WHILE FIRSTQUARTER EARNINGS WERE BETTER THAN MANY ESTIMATES THEY WERE 13 LOWER THAN YEARAGO EARNINGS WHEN EXCLUDING A 332 MILLION CHARGE FOR AN ACCOUNTING CHANGE IN THE 1992 QUARTER THE DROP STEMS FROM A CONTINUING SHIFT IN HP'S PRODUCT MIX TOWARD EQUIPMENT SUCH AS PERSONALCOMPUTER PRINTERS THAT IT SELLS IN HIGH VOLUME BUT THAT CARRY LOWER GROSS PROFIT MARGINS HP SAID ORDERS FOR ITS LASER PRINTERS AND INKJET PRINTERS WERE UP SHARPLY IN THE QUARTER AND WORKSTATION SALES WERE STRONG WHILE SALES OF ITS BIG MULTIUSER COMPUTERS WHICH CARRY FATTER PROFIT MARGINS WERE SLOW WITH FALLING MARGINS HP'S COST OF DOING BUSINESS IS GROWING IN PROPORTION TO REVENUEHP'S COST OF GOODS ROSE TO 583 FROM 532 IN THE YEARAGO QUARTER AS A RESULT OF THIS SHIFT HP'S OVERALL GROSS PROFIT MARGIN FELL TO 417 IN THE QUARTER FROM 468 IN THE YEARAGO QUARTER 9302180153 930218 SYLVAN UNIT'S CONSENT ORDER SARVER PA SYLVAN FOODS HOLDINGS INC SAID ITS MOONLIGHT MUSHROOMS INC SUBSIDIARY AGREED TO NEW WASTEWATER MANAGEMENT GUIDELINES UNDER A CONSENT ORDER WITH THE STATE THE COMPANY ALSO SAID IT WILL PAY A CIVIL PENALTY OF 250000 OVER FIVE YEARS AND 1000 A MONTH UNTIL IT ACHIEVES FULL COMPLIANCE AND IT AGREED TO PAY THE ARMSTRONG COUNTY PA CONSERVATION DISTRICT 100000 OVER FIVE YEARS 9302180152 930218 INTERNATIONAL AEROMEXICO AGREES TO RAISE TO 55 STAKE IN MEXICANA BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S ACQUISITIVE FLAG CARRIER AEROMEXICO SAID IT REACHED AGREEMENT IN PRINCIPLE TO INCREASE ITS STAKE IN FINANCIALLY TROUBLED MEXICANA AIRLINES TO ABOUT 55 FROM 11 AEROMEXICO DIDN'T DISCLOSE THE PURCHASE PRICE BUT PEOPLE CLOSE TO THE TRANSACTION SAID IT WAS IN THE RANGE OF 100 MILLION TO 130 MILLION THE TWO AIRLINES WHICH TOGETHER CONTROL ABOUT 80 OF MEXICO'S DOMESTIC MARKET WILL CONTINUE AS SEPARATE COMPANIES AEROMEXICO'S GENERAL DIRECTOR SAID THE AGREEMENT REQUIRES THE APPROVAL OF THE SECRETARIAT OF COMMUNICATIONS AND TRANSPORTATION UNDER THE AGREEMENT AEROVIAS DE MEXICO SA AEROMEXICO'S PARENT COMPANY WILL EXCHANGE STOCK FOR THE MEXICANA STAKE NOW HELD BY CORPORACION FALCON SA FALCON IS LED BY TOURISM ENTREPRENEURS ISRAEL AND PABLO BRENER AT A NEWS CONFERENCE THE PRESIDENT OF PUBLICLY TRADED AEROMEXICO EMPHASIZED THAT NO HOLDING COMPANY WOULD BE FORMED FOR THE TWO CARRIERS NOR WOULD ANY DOMESTIC ROUTES BE CUT AEROMEXICO PLANS LATER THIS YEAR TO PLACE 150 MILLION IN CONVERTIBLE BONDS TO COMPLETE THE MEXICANA SHARE PURCHASE AND ITS RECENT ACQUISITION OF AEROPERU PEOPLE CLOSE TO THE COMPANY SAID AEROMEXICO IS ALSO EXPECTED TO SEEK FINANCING THROUGH AN 18 MILLION BRIDGE LOAN UNDER THE REFORMS OF PRESIDENT CARLOS SALINAS DE GORTARI AIR TICKET PRICES HAVE FALLEN WITH NEW COMPETITION SINCE THE PRIVATIZATION OF AEROMEXICO AND MEXICANA MORE THAN THREE YEARS AGO TAESA AIRLINES A MAVERICK DISCOUNT CARRIER IS GIVING BOTH AIRLINES A RUN FOR THEIR MONEY AFTER ONLY EIGHT MONTHS OF SCHEDULED OPERATION IT HAS A 10 MARKET SHARE LAST YEAR MEXICAN AIR TRAFFIC INCREASED 10 AS AEROMEXICO AND MEXICANA BOUGHT NEW PLANES LAST MONTH AEROMEXICO PURCHASED A 47 STAKE FOR 22 MILLION IN AEROPERU WHICH WILL EXPAND ITS ROUTE SYSTEM AEROMEXICO WAS PART OF A GROUP THAT MADE AN UNSUCCESSFUL BID LAST YEAR FOR A STAKE IN CONTINENTAL AIRLINES 9302180151 930218 CANADIAN STORE SALES RISE OTTAWA CANADIAN DEPARTMENT STORE SALES TOTALED 710 MILLION CANADIAN DOLLARS US564 MILLION IN JANUARY A 31 INCREASE FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID 9302180150 930218 NEW YORK BANKRUPTCIES A RECORD NEW YORK NEW BANKRUPTCIES IN THE NEW YORK AREA ROSE 25 IN 1992 TO A RECORD LEVEL PUBLIC DATA CORP WHICH PROVIDES A PRIVATE SUBSCRIPTION DATABASE OF NEW YORK CITY PUBLIC RECORDS SAID 34897 BUSINESSES AND INDIVIDUALS FILED FOR BANKRUPTCY IN NEW YORK'S SOUTHERN AND EASTERN DISTRICTS COMPRISING THE FIVE CITY BOROUGHS AND PARTS OF WESTCHESTER COUNTY THE FILINGS WERE CONSIDERABLY HIGHER IN EVERY QUARTER OVER 1991 PUBLIC DATA SAID 9302180149 930218 MARRIAGES COULD BECOME TOO DEAR IF CHANGES IN TAX LAW GO THROUGH BY ELLEN E SCHULTZ TALK ABOUT A MARRIAGE PENALTY WHILE PRESIDENT CLINTON'S PROPOSED TAX CHANGES MAY CAUSE HOWLS FROM MANY WELLTODO INDIVIDUALS THE LOUDEST SHOUTING MIGHT COME FROM WEALTHY MARRIED TAXPAYERS UNDER THE CURRENT TAX LAW MANY TWOINCOME COUPLES ALREADY PAY MORE AS HUSBAND AND WIFE THAN THEY WOULD OTHERWISE OWE IF THEY WERE SINGLE AND LIVING TOGETHER BUT MR CLINTON'S PROPOSAL WOULD MAGNIFY THAT MARRIAGE PENALTY FOR WEALTHIER TWOINCOME COUPLES FOR EXAMPLE THE NEW 36 MARGINAL TAX RATE WOULD KICK IN FOR MARRIED COUPLES FILING JOINTLY AFTER THEIR TAXABLE INCOME REACHED 140000 BUT FOR INDIVIDUALS THE 36 BRACKET WOULD START AT 115000 THUS TWO UNMARRIED PEOPLE COULD HAVE A COMBINED TAXABLE INCOME OF 230000 BEFORE THEY BOTH JUMPED TO THE 36 BRACKET FROM THE 31 BRACKET A MARRIED COUPLE WITH THE SAME 230000 OF COMBINED INCOME WOULD PAY 4500 MORE IN INCOME TAX THAN THEY WOULD IF THEY WERE SINGLE SAYS DIANE REACE A RESEARCH CONSULTANT AT HEWITT ASSOCIATES A BENEFITS CONSULTING FIRM IN LINCOLNSHIRE ILL BUT THERE'S MORE THE PROPOSED TAX LAW CHANGES WOULD ALSO IMPOSE A 10 SURTAX ON REGULAR TAXABLE INCOME OVER 250000 FOR BOTH INDIVIDUALS AND MARRIED TAXPAYERS AS A RESULT IF TWO INDIVIDUALS WITH INCOMES OF 150000 EACH MARRIED THEY WOULD PAY A SURTAX ON 50000 OF THEIR COMBINED 300000 INCOME BUT TWO SINGLE TAXPAYERS LIVING TOGETHER COULD EACH HAVE INCOMES OF 250000 FOR A COMBINED TOTAL OF 500000 WITHOUT BEING SUBJECT TO THE SURTAX THE TOTALS CAN MAKE QUITE A DIFFERENCE MS REACE CALCULATES THAT TWO INDIVIDUALS WITH INCOMES OF 140000 EACH WOULD EACH PAY 1250 MORE UNDER THE PROPOSED TAX PLAN THAN UNDER THE CURRENT LAW THAT'S A COMBINED TOTAL OF AN ADDITIONAL 2500 BUT IF THEY MARRIED THEY WOULD OWE 7925 INCLUDING THE SURCHARGE MORE THAN UNDER CURRENT LAW A MARRIAGE PENALTY UNDER THE PROPOSED CHANGES OF 5425 MORE THAN IF THEY REMAINED SINGLE FURTHER SAYS MS REACE THE SURTAX HAS A BIGGER IMPACT THE HIGHER YOUR INCOME GOES UP WHILE THE TREASURY DEPARTMENT COMPUTED EIGHT SCENARIOS OF HOW THE PROPOSED TAX CHANGES WOULD EFFECT WEALTHY TAXPAYERS OF VARIOUS INCOMES NONE OF THE EXAMPLES INCLUDED A MARRIED TWOINCOME COUPLE A TREASURY DEPARTMENT SPOKESMAN DIDN'T RETURN PHONE CALLS 9302180148 930218 INTERNATIONAL PECHINEY'S 1992 PROFIT DECLINED PARIS NET INCOME AT PECHINEY SA THE FRENCH STATEOWNED ALUMINUM AND PACKAGING GROUP DROPPED 76 TO ABOUT 200 MILLION FRANCS 363 MILLION BECAUSE OF RESTRUCTURING PROVISIONS AND A DISMAL MARKET FOR ALUMINUM ITS CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW WITH THE FRENCH DAILY LES ECHOS JEAN GANDOIS ALSO SAID THAT THE COMPANY EXPECTS TO POST A SLIGHT LOSS FOR THE FIRST HALF OF 1993 AND A BARELY POSITIVE OPERATING PROFIT FOR THE WHOLE OF 1993 HE ADDED WE'RE GOING TO HAVE TO FIGHT TO GET THERE 9302180147 930218 DOW CORNING SAYS A GRAND JURY STUDIES FIRM'S HANDLING OF BREASTIMPLANT DATA BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DOW CORNING CORP CONFIRMED THAT A FEDERAL GRAND JURY IS LOOKING INTO THE COMPANY'S HANDLING OF POTENTIALLY DAMAGING INFORMATION ABOUT ITS EARLIER PRODUCTION OF SILICONE BREAST IMPLANTS WITHIN THE PAST WEEK WE'VE RECEIVED TWO SUBPOENAS FROM THE US ATTORNEY'S OFFICE IN BALTIMORE SAID A SPOKESMAN FOR THE JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC THE IMPETUS FOR THE INVESTIGATION APPARENTLY COMES FROM THE FOOD AND DRUG ADMINISTRATION WHICH HAS LOCKED HORNS WITH DOW CORNING OVER THE COMPANY'S REFUSAL TO PROVIDE CERTAIN DOCUMENTS AN FDA SPOKESWOMAN SAID ONLY THAT SOME WEEKS AGO WE DID ADVISE DOW CORNING THAT WE HAD REFERRED THE CASE TO JUSTICE BUT SHE EMPHASIZED THAT THE FDA ONLY REFERS CASES AND DOESN'T DECIDE WHETHER AN INVESTIGATION WILL BE LAUNCHED THE MIDLAND MICH COMPANY ONCE THE NATION'S BIGGEST MAKER OF SILICONE BREAST IMPLANTS DENIES ANY WRONGDOING DOW CORNING LAST MONTH DECLINED TO PROVIDE THE FDA WITH A REPORT ON ITS IMPLANTS THAT THE VENTURE'S INDEPENDENT COUNSEL FORMER US ATTORNEY GRIFFIN BELL HAD SPENT NINE MONTHS PREPARING THE COMPANY RETAINED MR BELL A YEAR AGO WHEN THE PUBLIC'S CONCERNS ABOUT BREASTIMPLANT SAFETY WERE AT THEIR HEIGHT SINCE THEN THE COMPANY HAS ENDED PRODUCTION OF THE DEVICES AND THE FDA HAS IMPOSED STRICT LIMITS ON ALL SUCH IMPLANTS LIKE OTHER MAKERS OF SILICONEGEL IMPLANTS DOW CORNING FACES MANY LAWSUITS FROM WOMEN WHO CONTEND THAT THEIR IMPLANTS CAUSED THEM A VARIETY OF AILMENTS IN NOVEMBER MR BELL PRESENTED HIS REPORT TO THE COMPANY DOW CORNING DISCLOSED AT THE TIME THAT HIS CONCLUSIONS INCLUDED A FINDING THAT COMPANY EMPLOYEES HAD OVER A PERIOD OF YEARS FALSIFIED RECORDS WHEN HITCHES OCCURRED DURING THE HEATTREATMENT OF CERTAIN BATCHES OF SILICONE GEL THE VULCANIZATION PROCESS IS DESIGNED TO TURN LIQUID SILICONE INTO A THICKER GEL THAT IS LESS LIKELY TO MIGRATE INTO OTHER PARTS OF THE BODY ALTHOUGH DOW CORNING KNEW ABOUT THE PROBLEM IN 1987 IT HADN'T ALERTED THE FDA WHEN IT PROVIDED MANUFACTURING RECORDS FOR REVIEW DOW CORNING CONTENDS THAT THE ISSUE HASN'T ANY HEALTH RAMIFICATIONS FOR IMPLANT RECIPIENTS LAST MONTH FDA OFFICIALS COMPLAINED PUBLICLY THAT DOW CORNING HAD REFUSED TO TURN OVER THE FULL TEXT OF MR BELL'S REPORT THE REPORT IS NEEDED TO MAKE SENSE OF THE HUGE VOLUME OF DOCUMENTS THE COMPANY HAS TURNED OVER THE FDA CONTENDS BUT DOW CORNING ASSERTS THE REPORT IS PRIVILEGED UNDER THE ATTORNEYCLIENT RELATIONSHIP THE GRAND JURY HAS SUBPOENAED BASICALLY THE SAME DOCUMENTS THAT THE FDA AND THE TRIAL LAWYERS ASSOCIATION HAVE BEEN SEEKING SAID GARY ANDERSON DOW CORNING EXECUTIVE VICE PRESIDENT THOSE INCLUDE THE FULL BELL REPORT HE SAID AND WHILE WE WANT TO WORK WITH THE JUSTICE DEPARTMENT AS BEST WE CAN THE COMPANY INTENDS TO ASSERT THE SAME PRIVILEGE WITH RESPECT TO THE REPORT THE GRAND JURY'S INVESTIGATION WAS FIRST DISCLOSED IN A REPORT IN THE DETROIT FREE PRESS A GRAND JURY DETERMINES WHETHER THERE IS A BASIS FOR A CRIMINAL INDICTMENT AN INVESTIGATION BY SUCH A PANEL ISN'T EVIDENCE OF ANY WRONGDOING THE US ATTORNEY'S OFFICE IN BALTIMORE DECLINED TO PROVIDE ANY COMMENT 9302180146 930218 AMERICAN EXPLORATION CO HOUSTON AMERICAN EXPLORATION CO SAID AN EXPLORATORY WELL IN LAFAYETTE PARISH LA FLOW TESTED AT A RATE OF 168 MILLION CUBIC FEET OF NATURAL GAS AND 1132 BARRELS OF CONDENSATE DAILY THE WELL WAS TESTED ON A 22/64INCH OPENING AMERICAN HOLDS A 125 INTEREST IN THE DISCOVERY AND THE OPERATOR AND OTHER OWNERS ARE CLOSELY HELD COMPANIES AND INDIVIDUALS PRODUCTION IS SCHEDULED TO BEGIN IN THE SECOND QUARTER OF 1993 THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID 9302180145 930218 AIRGAS CHIEF EXERCISES WARRANTS WILMINGTON DEL AIRGAS INC SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER PETER MCCAUSLAND EXERCISED WARRANTS TO PURCHASE 18 MILLION SHARES OF AIRGAS COMMON AT AN AVERAGE PRICE OF 602 A SHARE MR MCCAUSLAND FINANCED THE PURCHASE BY SURRENDERING RIGHTS TO EXERCISE WARRANTS FOR AN ADDITIONAL 656574 SHARES THE PURCHASE BOOSTED HIS HOLDINGS TO 24 MILLION SHARES OR ALMOST 16 OF THE COMMON STOCK OUTSTANDING OF THE DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES IN LATE NEW YORK STOCK EXCHANGE TRADING AIRGAS SHARES WERE QUOTED AT 22875 UP 125 CENTS 9302180144 930218 ECONOMY OPEC ACCORD TO TRIM OUTPUT REFLECTS SAUDI PRICE GOAL OF 1822 A BARREL BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA THE NEW OPEC AGREEMENT TO CUT PRODUCTION REFLECTS A GOAL BY SAUDI ARABIA FOR OIL PRICES TO RISE TO A RANGE OF 18 TO 22 A BARREL WHETHER THESE EXPECTATIONS WILL BE FULFILLED BY THE OPEC PACT REMAINS TO BE SEEN YESTERDAY PRICES GENERALLY FELL AGAIN ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY SETTLED 20 CENTS A BARREL LOWER AT 1933 ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES DROPPED BETWEEN 32 CENTS AND 41 CENTS A BARREL THE SAUDI PRICING GOAL WHICH LAST YEAR WAS REPORTED TO BE A RANGE OF 17 TO 21 IS SIGNIFICANT FOR OIL MARKETS BECAUSE THE KINGDOM IS THE WORLD'S LARGEST PRODUCER AND THE KINGPIN OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BEFORE THAT SAUDI ARABIA APPEARED CONTENT WITH 15 OR MORE A BARREL FOR THE AVERAGE PRICE OF THE OPEC BASKET OF SEVEN CRUDES WHICH USUALLY IS ABOUT 2 A BARREL BELOW THE US BENCHMARK CRUDE NOW SAUDI MISGIVINGS ARE TRIGGERED WHEN THE OPEC PRICE 1737 THIS WEEK FALLS BELOW 18 A BARREL EQUALLY THE KINGDOM WHICH HAS LONG FAVORED A MODERATE OIL PRICE DOESN'T WANT IT TO RISE BEYOND 22 A BARREL MOVEMENTS OUTSIDE THIS 4 RANGE MAKE SAUDI OFFICIALS UNCOMFORTABLE SOURCES SAID THE KINGDOM FEARS THAT PRICES ABOVE 22 WOULD HAVE A NEGATIVE IMPACT ON LONGTERM OIL DEMAND EVENTUALLY CURBING ITS PRODUCTION SOURCES SAY ALSO IT WORRIES THAT A DECLINE IN RECENT YEARS IN REAL OR INFLATIONADJUSTED OIL PRICES HAS INCREASED THE PROPENSITY OF MAJOR CONSUMING NATIONS SUCH AS THE US TO RAISE TAXES ON OIL TAKING THE DOLLARS OIL PRODUCERS HAVE BEEN LEAVING ON THE TABLE TO ENCOURAGE LONGTERM DEMAND JUST YESTERDAY IN FACT PRESIDENT CLINTON PROPOSED A NEW 22 BILLIONAYEAR ENERGY TAX THAT HITS OIL AS WELL AS COAL AND NATURAL GAS BUT OTHER FACTORS ARE ALSO AT WORK BECAUSE PETROLEUM PRICES NOW ARE CONSIDERED RELATIVELY CHEAP THERE IS A GROWING CONVICTION THAT A FEW DOLLARS MORE PER BARREL WOULD HAVE LITTLE IMPACT ON DEMAND SUCH INCREASES HOWEVER WOULD HAVE A MAJOR IMPACT ON REVENUE OF THE EXPORTERS PARTICULARLY SAUDI ARABIA AND IRAN WHICH PRODUCE AROUND 84 MILLION AND 35 MILLION BARRELS A DAY RESPECTIVELY ALSO INCREASINGLY IMPORTANT A HIGHER PRICE WOULD PROVIDE A REVENUE CUSHION OF SORTS FOR THE TIME WHEN IRAQ WHOSE OIL EXPORTS STILL ARE BANNED BY THE UNITED NATIONS REENTERS THE WORLD OIL MARKETS THEN OTHER OPEC MEMBERS INCLUDING SAUDI ARABIA WILL HAVE TO TRIM THEIR OWN OUTPUT TO MAKE ROOM FOR IRAQ'S CRUDE THAT SAUDI PRICING POLICY WAS CHANGING BECAME EVIDENT LAST YEAR AT THE TIME THE KINGDOM LET IT BE KNOWN THAT IT NO LONGER OPPOSED INCREASES IN OIL PRICES HOWEVER SAUDI PRICING POLICY IS GUIDED BY ITS REVENUE GOALS AND UNTIL RECENTLY THESE GOALS WERE MET BY THE KINGDOM'S ABILITY TO PRODUCE MORE AND MORE OIL AND THE MARKET'S ABILITY TO ABSORB THE RISING SAUDI VOLUMES BUT IN RECENT MONTHS THE MARKET HAS SIGNALED IT IS SATED AND PRICES HAD BEEN FALLING DEPRESSING SAUDI REVENUE THAT IS WHY HISHAM NAZER THE INFLUENTIAL SAUDI OIL MINISTER PLAYED SUCH A MAJOR ROLE IN DEVELOPING THIS WEEK'S OPEC AGREEMENT THE PACT FINALLY APPROVED TUESDAY NIGHT AS PREVIOUSLY REPORTED CALLS FOR TOTAL PRODUCTION OF THE 12 MEMBERS TO DROP 14 MILLION BARRELS A DAY TO 236 MILLION A DAY THE IDEA IS TO RAISE PRICES UNDER THE AGREEMENT EFFECTIVE MARCH 1 SAUDI ARABIA WILL REDUCE ITS OUTPUT TO EIGHT MILLION BARRELS A DAY IRAN THE SECOND LARGEST OPEC PRODUCER WILL LOWER PRODUCTION TO SLIGHTLY MORE THAN 33 MILLION A DAY AND VENEZUELA WILL CUT TO LESS THAN 23 MILLION ALL THREE OF OPEC'S LEADING EXPORTERS HAVE BEEN PROMINENT OVER THE PAST SEVERAL WEEKS IN THE EFFORT TO REDUCE PRODUCTION ALIRIO PARRA THE VENEZUELAN OIL MINISTER WHO IS ALSO OPEC'S PRESIDENT ORCHESTRATED THE OPEC CONSENSUS BY LOBBYING ITS HEADS OF STATE BUT IT WAS MR NAZER WHO GAVE OIL PRICES THE BIGGEST BOOST IN LATE JANUARY HE ANNOUNCED SAUDI SUPPORT FOR A CUT OF MORE THAN 4 IN OPEC'S PRODUCTION THAT LED TO INCREASES OF AS MUCH AS 2 A BARREL IN OIL PRICES AS TRADERS ANTICIPATED THAT THE SAUDI BACKING WOULD ENSURE THE OPEC PRODUCTION CUT THERE IS SOME SKEPTICISM IN OIL MARKETS OVER THE EFFECTIVENESS OF THE OPEC ACCORD THAT HAS RESULTED BUT JOHN H LICHTBLAU CHAIRMAN OF THE NEW YORKBASED PETROLEUM INDUSTRY RESEARCH FOUNDATION HERE THIS WEEK TO OBSERVE THE OPEC MEETING SAID YESTERDAY IT'S CLEARLY A WORKABLE AGREEMENT IF EVERYBODY STICKS TO IT 9302180142 930218 DIVIDEND NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN THIS CLOTHING RETAILER DECLARED A 3FOR2 STOCK SPLIT THE COMPANY SAID A 50 STOCK DIVIDEND WOULD BE DISTRIBUTED MARCH 18 TO STOCK OF RECORD MARCH 3 GOODY'S CURRENTLY HAS 108 MILLION COMMON SHARES OUTSTANDING 9302180141 930218 CLINTON'S ECONOMIC PACKAGE DOMESTIC PROGRAMS TOP THE NEW AGENDA BY LAURIE MCGINLEY AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC PLAN SLASHES DEFENSE SPENDING MODESTLY PARES OUTLAYS FOR GOVERNMENTBENEFIT PROGRAMS AND INCREASES INVESTMENT SPENDING THE DOMESTIC PROGRAMS THAT THE PRESIDENT FAVORS THE PLAN CALLS FOR ABOUT 16 BILLION IN EXTRA SPENDING IN THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 BUT TOTAL FEDERAL OUTLAYS OVER THE NEXT FOUR YEARS ARE PROJECTED TO BE ABOUT 138 BILLION LESS THAN THEY WOULD BE IF CURRENT POLICIES WERE PURSUED OVER FOUR YEARS PRESIDENT CLINTON PROPOSES CUTTING DEFENSE OUTLAYS BY ABOUT 76 BILLION REDUCING HEALTHCARE AND OTHER MANDATORY SPENDING BY ANOTHER 76 BILLION SAVING 21 BILLION BY MAKING UPPERINCOME SOCIAL SECURITY RECIPIENTS PAY TAXES ON MORE OF THEIR BENEFITS AND SAVING AN ADDITIONAL 24 BILLION IN LOWER INTEREST COSTS BECAUSE OF THE REDUCED FEDERAL DEFICIT IN CONTRAST SPENDING ON DOMESTIC PROGRAMS WOULD RISE NEARLY 60 BILLION WITHIN THE DOMESTICSPENDING ARENA THOUGH THE PRESIDENT SHIFTED BILLIONS OF DOLLARS TO REFLECT HIS PRIORITIES FUNDING WOULD BE INCREASED FOR ITEMS RANGING FROM HIGHSPEED RAIL TO TREEPLANTING TO RENEWABLEENERGY PROGRAMS WHILE SPENDING WOULD BE CURBED FOR RURAL ELECTRIFICATION LOAN SUBSIDIES AND NUCLEAR REACTOR RESEARCH AND DEVELOPMENT THE 16 BILLION SHORTTERM ECONOMICSTIMULUS PACKAGE WHICH WILL BE A REQUEST FOR NEW BUDGET AUTHORITY FOR THE CURRENT FISCAL YEAR IS DESIGNED TO SPUR JOB CREATION AT A TIME WHEN THE ECONOMY IS CLEARLY RECOVERING BUT IS POSTING ONLY MODEST JOB GAINS INCLUDED ARE SUCH CUSTOMARY DEMOCRATIC PUMPPRIMING PROJECTS AS A 39 BILLION INCREASE IN TRANSPORTATION SPENDING WITH 518 MILLION EARMARKED FOR READYTOGO PROJECTS IN THE CURRENT FISCAL YEAR IN ADDITION THERE'S 25 BILLION FOR GRANTS TO STATE AND LOCAL GOVERNMENTS AND 845 MILLION IN FUNDS FOR SEWER CONSTRUCTION AND OTHER PROJECTS BUT THE PACKAGE ALSO REFLECTS A WHITE HOUSE EFFORT TO ADVANCE ITS SOCIAL AGENDA IT WOULD PROVIDE FOR EXAMPLE AN EXTRA 1 BILLION FOR SUMMER YOUTH EMPLOYMENT AND TRAINING WHICH THE LABOR DEPARTMENT HOPES TO COUPLE WITH A NEW TUTORING PROGRAM AND 300 MILLION FOR CHILDHOOD IMMUNIZATION THINGS THAT NORMALLY WOULDN'T BE CONSIDERED ECONOMICSTIMULUS PROGRAMS IN ADDITION THE SHORTTERM PACKAGE WOULD EXPAND AID TO THE HOMELESS BY 423 MILLION AND PROVIDE 32 BILLION TO FUND THE FEDERAL EMERGENCY UNEMPLOYMENT BENEFITS PLAN THROUGH OCTOBER DEMOCRATIC LEADERS INCLUDING HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO ARE URGING PASSAGE OF THE PACKAGE BY APRIL SOME ECONOMISTS BELIEVE THAT THE FISCAL 1993 STIMULUS IS OVERKILL DONALD STRASZHEIM CHIEF ECONOMIST FOR MERRILL LYNCH & CO SAID THE COUNTRY DOESN'T NEED ANY FISCAL STIMULUS CONSIDERING THE ECONOMY'S HEALTHY 35 ANNUAL GROWTH RATE IN THE SECOND HALF OF 1992 EDWARD YARDENI CHIEF ECONOMIST FOR CJ LAWRENCE INC SAID THE STIMULUS PACKAGE WON'T HELP THINGS MUCH BUT WON'T HURT EITHER TAKING THE LONGER VIEW MR CLINTON FASHIONED A SWEEPING FOURYEAR INVESTMENT PLAN THAT WOULD COST AN ADDITIONAL 160 BILLION OVER THE NEXT FOUR YEARS IT'S A BID TO FULFILL HIS CAMPAIGN PLEDGE TO SPUR LONGTERM ECONOMIC GROWTH AND WORKER PRODUCTIVITY AMONG THE BIGGEST WINNERS WOULD BE TECHNOLOGY AND ENVIRONMENTAL PROGRAMS AND TRANSPORTATION PROJECTS LISTED UNDER THE BROAD HEADING OF REBUILDING AMERICA AND EDUCATION AND WORKER TRAINING PROGRAMS UNDER LIFELONG LEARNING AS PART OF THE INFRASTRUCTURE CATEGORY PRESIDENT CLINTON PROMISED TO SPEND 17 BILLION ON A VARIETY OF COMMERCIALTECHNOLOGY PROGRAMS OVER THE NEXT FOUR YEARS INCLUDING 195 BILLION IN THE YEAR BEGINNING OCT 1 BUT EVEN THAT LARGE SUM DIDN'T MATCH THE EXPECTATIONS THAT HAD BEEN SET UP DURING THE CAMPAIGN FOR INSTANCE THE PRESIDENT MADE THE EXPANSION OF A SUPERCOMPUTER AND FIBEROPTIC NETWORK WHICH HE CALLED THE INFORMATION SUPERHIGHWAY THE FLAGSHIP OF HIS TECHNOLOGY INITIATIVE BUT HIS PROPOSED INCREASES DON'T MATCH THE NETWORK'S GROWTH SPURT DURING THE BUSH YEARS OR THE SPENDING PLANS ADVANCED BY VICE PRESIDENT ALBERT GORE WHEN HE WAS A SENATOR CURRENTLY THE FEDERAL GOVERNMENT SPENDS ABOUT 750 MILLION A YEAR ON THE NETWORK THE CLINTON PLAN WOULD INCREASE THAT BY ABOUT 90 MILLION APPROXIMATELY 12 IN THE NEXT FISCAL YEAR INCLUDING 37 MILLION TO FUND PILOT PROJECTS IN WHICH SCHOOLS LIBRARIES AND HOSPITALS PROPOSE WAYS TO USE THE HIGHSPEED NETWORK ON TRANSPORTATION THE PRESIDENT WILL SEEK INCREASED SPENDING OF 497 MILLION FOR THE 1994 FISCAL YEAR AND 84 BILLION OVER THE NEXT FOUR YEARS THAT INCLUDES 56 BILLION MORE FOR HIGHWAYS 12 BILLION FOR TRANSIT AND 646 MILLION FOR HIGHSPEED RAIL AND MAGNETIC LEVITATION PROJECTS MR CLINTON PROPOSED AN ADDITIONAL 8 BILLION IN ENVIRONMENTAL SPENDING OVER FOUR YEARS WITH 527 MILLION SOUGHT FOR FISCAL 1994 INCLUDING FUNDING FOR CLEANER WATER AND IMPROVED ENVIRONMENTAL TECHNOLOGY AND FORESTRY RESEARCH THE 1994 BUDGET WOULD ALSO INCLUDE CREATION OF A NEW 600 MILLION REVOLVING FUND FOR STATES TO DRAW ON TO IMPROVE DRINKING WATER QUALITY ON ENERGY THE PRESIDENT IS SEEKING A 3 BILLION INCREASE OVER FOUR YEARS FOCUSED ON SUCH PROGRAMS AS CONSERVATION AND RENEWABLE ENERGY AND FUSION RESEARCH FOR 1994 HIS PLANS INCLUDE A 108 MILLION INCREASE IN FUNDING FOR THE CONTROVERSIAL SUPERCONDUCTING SUPERCOLLIDER CURRENTLY BUDGETED AT 532 MILLION THAT'S LESS THAN THE BUSH ADMINISTRATION WAS PLANNING TO SEEK AND WILL STRETCH OUT CONSTRUCTION OF THE ATOM SMASHER AT LEAST TWO YEARS THE WHITE HOUSE ENVISIONS AN ADDITIONAL 96 BILLION FOR HOUSING AND COMMUNITY DEVELOPMENT WITH THE MONEY TARGETED LARGELY FOR GRANTS TO STATE AND LOCAL GOVERNMENTS AND ASSISTEDHOUSING PLANS ON RURAL DEVELOPMENT THE PRESIDENT WANTS TO SPEND AN ADDITIONAL 15 BILLION OVER FOUR YEARS ON RURAL WATER AND WASTETREATMENT LOANS AND GRANTS AND COMMUNITY AND BUSINESS DEVELOPMENT PRESIDENT CLINTON'S LIFELONG LEARNING CATEGORY INCLUDES SPENDING OF 6 BILLION OVER FOUR YEARS TO PHASE IN A NEW NATIONALSERVICE PROGRAM ALLOWING STUDENTS TO PAY BACK COLLEGE LOANS THROUGH COMMUNITY SERVICE AND 62 BILLION OVER FOUR YEARS FOR EDUCATION REFORM AND INITIATIVES INCLUDING FUNDS FOR MEETING NATIONAL EDUCATION GOALS STUDENT STANDARDS AND OTHER EFFORTS TO IMPROVE EDUCATION THROUGH STATEGRANT PROGRAMS MR CLINTON'S PROPOSAL ALSO INCLUDES THE PHASINGIN BY 1997 OF A DIRECTLOAN PROGRAM TO ALLOW COLLEGE STUDENTS TO BORROW DIRECTLY FROM THE GOVERNMENT WITH AN ESTIMATED SAVINGS OF 13 BILLION IN ADMINISTRATIVE AND OTHER COSTS OVER FOUR YEARS HE ALSO WILL PROPOSE A 932 MILLION INCREASE IN FISCAL 1994 FOR HEAD START AN EDUCATION PROGRAM FOR DISADVANTAGED PRESCHOOL CHILDREN MR CLINTON ALSO WILL SEEK 105 BILLION FOR WORKER TRAINING OVER THE NEXT FOUR YEARS A NUMBER OF EXISTING PROGRAMS WOULD BE EXPANDED THE LABOR DEPARTMENT EXPECTS TO RECEIVE ABOUT 2 BILLION FOR THE YEAR BEGINNING IN OCTOBER TO EXPAND A PROGRAM TO TRAIN WHAT THE AGENCY CALLS PERMANENTLY DISLOCATED WORKERS THOSE WHO HAVE LOST THEIR JOBS AND DON'T EXPECT TO GET THEM BACK MANY OF THOSE WORKERS NOW RECEIVE TRAINING THROUGH EITHER LABOR DEFENSE OR ENERGY DEPARTMENT PROGRAMS NOW THE PROGRAM WOULD BE ABOUT DOUBLED IN SIZE AND WOULD BE RUN THROUGH THE LABOR DEPARTMENT AN OFFICIAL AT THE AGENCY SAID THE ADMINISTRATION ALSO PLANS TO SPEND 24 BILLION FOR EXTENDING UNEMPLOYMENT COMPENSATION IN THE NEXT FISCAL YEAR THE PRESIDENT ALSO PLANS TO BOOST ANTICRIME PROGRAMS SHARPLY IN AN EFFORT TO BOOSTING THE NUMBER OF STATE AND LOCAL POLICE OFFICERS THE POLICE CORPS WHICH WOULD PROVIDE SCHOLARSHIPS TO STUDENTS WHO PROMISE TO SERVE AS POLICE OFFICERS WOULD GET UP TO 150 MILLION BY 1997 A COMMUNITYPOLICING PROGRAM WOULD FUND NEW POLICE HIRES SPECIAL TRAINING AND OTHER PROGRAMS TO REDUCE CRIME AND WOULD COST 300 MILLION BY 1997 ON SPENDING CUTS THE ADMINISTRATION TOOK AIM AT A VARIETY OF PROGRAMS BUT SELECTED TWO AREAS DEFENSE AND FEDERAL WORKERS FOR ESPECIALLY TOUGH TREATMENT UNDER THE PRESIDENT'S PLAN FEDERAL WORKERS' SALARIES WOULD BE FROZEN IN 1994 AND THEN RISE AT ONE PERCENTAGE POINT LESS THAN THE COST OF LIVING FROM 1995 THROUGH 1997 FOR A PROJECTED SAVINGS OF 83 BILLION IN ADDITION HIS PLANS TO CUT THE FEDERAL WORK FORCE BY 100000 EMPLOYEES AND TO REDUCE OTHER COSTS WOULD SAVE AN ADDITIONAL 155 BILLION ACCORDING TO THE ADMINISTRATION THE ADMINISTRATION IS PROPOSING A WHOPPING 76 BILLION CUT IN DEFENSE SPENDING BETWEEN 1994 AND 1997 THE BIGGEST SINGLE CUT FROM THE OLD BUSH DEFENSE BUDGET PLAN WOULD COME IN FISCAL 1997 WHEN ACCORDING TO THE CLINTON PLAN THE DEFENSE BUDGET WOULD BE 2484 BILLION DOWN FROM 2743 BILLION THIS YEAR IT IS A NOTICEABLY DEEPER CUT THAN HIS 60 BILLION CAMPAIGN PLEDGE SAID STEVE KOSIAK A BUDGET ANALYST AT THE NONPROFIT DEFENSE BUDGET PROJECT DEFENSE OFFICIALS DECLINED TO SAY EXACTLY HOW THE CUTS WOULD BE ACHIEVED INSTEAD THEY REFERRED ONLY GENERALLY TO PRESIDENT CLINTON'S CAMPAIGN PROMISES TO REDUCE ACTIVEDUTY MILITARY FORCES TO ABOUT 14 MILLION PEOPLE AND TO CUT FUNDS FROM THE STRATEGIC DEFENSE INITIATIVE AND FROM NUCLEAR WEAPONS AND INTELLIGENCE PROGRAMS IN FACT THE PROPOSED CUTS SUGGEST FAR MORE SWEEPING CHANGES THE CLOSEST BLUEPRINT FOR A DEFENSE BUDGET OF THE SIZE NOW BEING CONTEMPLATED FOR 1997 WAS LAID OUT EARLY LAST YEAR BY DEFENSE SECRETARY LES ASPIN WHEN HE WAS STILL CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITTEE IN HIS ANALYSIS A 1997 BUDGET OF ABOUT 250 BILLION WOULD SUPPORT A US MILITARY ESTABLISHMENT AROUND HALF THE SIZE OF THE ONE THAT EXISTED AT THE END OF THE COLD WAR A BUDGET OF THAT SIZE WOULD ENABLE THE US TO MOUNT A DESERT STORMSIZE OPERATION AND SIMULTANEOUSLY DEAL WITH A REGIONAL CRISIS ELSEWHERE MR ASPIN SAID BUT HE CONCLUDED THAT OPERATION COULDN'T BE LENGTHY BECAUSE THERE WOULDN'T BE ROTATION TROOPS AVAILABLE TO REPLACE THE DEPLOYED FORCES MR ASPIN'S ANALYSIS SAID THAT THE BUDGET WOULD SUPPORT EIGHT ACTIVEDUTY ARMY DIVISIONS DOWN FROM 16 AT THE END OF 1991 THE REDUCTION IN THE AIR FORCE IS EVEN MORE STRIKING EIGHT ACTIVE WINGS IN THE ASPIN ANALYSIS VS 22 IN 1991 THE MARINES WOULD HAVE TWO ACTIVE DIVISIONS DOWN FROM THREE AT THE END OF THE COLD WAR THE NAVY MEANWHILE WOULD HAVE 290 SHIPS DOWN FROM 528 IN 1991 BUT THE ASPIN ANALYSIS ALSO ASSUMED THAT IN THE POSTCOLD WAR WORLD THE US AS IT WITHDREW FROM OVERSEAS BASES WOULD SIGNIFICANTLY INCREASE ITS FLEET OF PREPOSITIONED AND FASTSEALIFT SHIPS DEFENSE OFFICIALS SAID THAT MR ASPIN'S 1992 ANALYSIS IS NOW OUTMODED BECAUSE IT DEALT WITH THE US FORCES THEN IN EXISTENCE AND IS BASED ON DIFFERENT FINANCIAL ASSUMPTIONS NONETHELESS IT APPEARS TO REMAIN THE BEST OVERVIEW OF THE IMPLICATIONS OF THE 1997 DEFENSE BUDGET THE ADMINISTRATION IS PROPOSING IT IS A BUDGET THAT ALMOST CERTAINLY WILL BE ATTACKED BY THE MILITARY AND SOME IN CONGRESS THE 1994 BUDGET CUTS ALSO INCLUDE 800 MILLION IN NUCLEAR WEAPONS PROGRAMS 200 MILLION TO PHASE OUT NUCLEAR ADVANCED REACTOR PROGRAMS AND A PROJECTED 260 MILLION SAVINGS IN THE URANIUM ENRICHMENT PROGRAM ACHIEVED BY PURCHASE OF HIGHLY ENRICHED URANIUM FROM THE FORMER SOVIET UNION IN ADDITION THE ADMINISTRATION IS LOOKING FOR WAYS TO SAVE ON ITS SPACE STATION PROJECT OFFICIALS TOLD CONGRESSIONAL STAFFERS THAT MR CLINTON WANTS TO REDESIGN AND SCALE DOWN THE ORBITING LABORATORY BUT IN A BIZARRE TWIST THE ADMINISTRATION IN ITS WRITTEN DOCUMENTS DETAILING SAVINGS ACTUALLY LISTS 21 BILLION MORE OVER THE NEXT FOUR YEARS TO REDESIGN SPACE STATION AND INVEST IN NEW TECHNOLOGY AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE WHITE HOUSE COULDN'T PROVIDE EXPLANATIONS FOR THE NUMBERS THE ADMINISTRATION PROPOSED CUTTING FREEZING OR ELIMINATING SEVERAL PROGRAMS IT DUBBED AS WASTEFUL OR UNNECESSARY FOR EXAMPLE THE ENVIRONMENTAL PROTECTION AGENCY FACES CUTS OF 118 MILLION IN SUPERFUND SPENDING FOR FISCAL 1994 AND 400 MILLION TO 500 MILLION THROUGH THE PHASEOUT OF CERTAIN WASTE WATER TREATMENT GRANTS AND SOME PERSONNEL AND ADMINISTRATIVE CUTS THE LABOR DEPARTMENT IS PLANNING TO SAVE 53 MILLION BY FREEZING SPENDING NEXT YEAR ON MOST OF THE PROGRAMS IN THE JOB TRAINING PARTNERSHIP ACT WHICH PROVIDES TRAINING FUNDS FOR YOUTH AND ADULTS IN A MOVE THAT'S LIKELY TO DRAW CONGRESSIONAL FIRE PRESIDENT CLINTON WOULD LET AGRICULTURAL PRICE INCOMESUPPORT AND DISASTERASSISTANCE PAYMENTS GO ONLY TO FARMERS WHOSE NONFARM ANNUAL INCOME WAS LESS THAN 100000 HE ALSO WOULD REDUCE THE ACREAGE THAT'S ELIGIBLE FOR PAYMENTS UNDER MAJOR SUBSIDY PROGRAMS AFFECTING SUCH CROPS AS COTTON WHEAT AND CORN STARTING IN 1996 A CONTROVERSIAL MARKETPROMOTION SPENDING PROGRAM WOULD BE FROZEN AT FISCAL 1993 LEVELS AND SUPPORT PAYMENTS FOR WOOL AND MOHAIR PRODUCERS WOULD BE LIMITED TO 50000 A PRODUCER KEEPING A CAMPAIGN PROMISE MR CLINTON WOULD ELIMINATE A LOAN PROGRAM FOR HONEY PRODUCERS OTHER SAVINGS WOULD COME FROM RAISING THE INTEREST RATES ON MOST LOANS MADE BY THE RURAL ELECTRIFICATION ADMINISTRATION WHILE RESERVING A POOL AT 5 INTEREST FOR NEEDY BORROWERS THE PLAN ENVISIONS SAVINGS FROM A STREAMLINING OF THE AGRICULTURE DEPARTMENT AND REVISING CROPINSURANCE PROGRAMS THE PACKAGE WOULDN'T CUT A PROGRAM THAT PAYS FARMERS TO KEEP ERODIBLE LAND OUT OF PRODUCTION THE PRESIDENT'S PROPOSALS CALL FOR A REVERSAL IN THE BUSH ADMINISTRATION'S STEADY INCREASE IN PRISONCONSTRUCTION FUNDING UNDER MR CLINTON'S PLAN THAT FUNDING WOULD DROP 7 MILLION IN FISCAL 1994 AND 331 MILLION OVER FOUR YEARS THE CLINTON ADMINISTRATION ALSO IS PROPOSING INCREASED USER FEES BORROWING AN IDEA FROM PRESIDENTS REAGAN AND BUSH THE CLINTON ADMINISTRATION HAS PROPOSED PUTTING UNUSED PORTIONS OF THE AIRWAVES UP FOR AUCTION RATHER THAN CONTINUING THE FEDERAL COMMUNICATIONS COMMISSION'S PRACTICE OF ASSIGNING FREQUENCIES THROUGH LOTTERIES OR LENGTHY COMPETITIVE HEARINGS THIS TIME AROUND THE PROPOSAL IS ESTIMATED TO BRING IN 374 MILLION IN FISCAL 1995 162 BILLION IN 1996 AND 208 BILLION IN 1997 THE TOTAL 408 BILLION EXCEEDS THE 38 BILLION THE BUSH ADMINISTRATION PROPOSED LAST YEAR FOR FISCAL YEARS 1994 THROUGH 1997 COMPETITIVE BIDDING FOR THE AIRWAVES HAS BEEN PROPOSED IN EVERY FEDERAL BUDGET FOR THE PAST FEW YEARS BUT CONGRESS SENSITIVE TO BROADCASTERS' CONCERNS HAS BEEN RELUCTANT TO AUTHORIZE IT THE BUDGET ASSUMES 102 BILLION IN SAVINGS OVER FOUR YEARS STARTING IN FISCAL 1994 FROM AN INCREASE IN USER FEES PAID TO THE FOOD AND DRUG ADMINISTRATION BY PHARMACEUTICAL MAKERS LEGISLATION REQUIRING THESE FEES WHICH ARE DESIGNED TO SPEED UP THE DRUGAPPROVAL PROCESS WAS ENACTED LAST YEAR WHILE THE REST OF CAPITOL HILL GOT READY FOR PRESIDENT CLINTON'S ECONOMIC ADDRESS A HOUSE APPROPRIATIONS SUBCOMMITTEE GREETED THE SUPREME COURT'S FISCAL 1994 BUDGET REQUEST WITH BIPARTISAN DEFERENCE JUSTICES ANTONIN SCALIA AND ANTHONY KENNEDY TOLD THE PANEL THAT THE HIGH COURT WOULD NEED AN INCREASE OF 23 MILLION TO 246 MILLION TO PAY FOR RISING SALARIES AND BENEFITS FOR COURT EMPLOYEES LAWMAKERS PRAISED THE JUSTICES FOR MAKING A RESPONSIBLE REQUEST JUSTICE SCALIA NOTED THAT THE COURT HAD CUT 100000 FROM ITS BUDGET BECAUSE IT COMPLETED A THREEYEAR PROGRAM TO IMPROVE ITS COMPUTER SYSTEM WE ARE EDUCABLE HE ASSERTED 9302180140 930218 COSMETIC CENTER SALES UP SAVAGE MD COSMETIC CENTER INC A SPECIALTY RETAILER OF COSMETICS AND BEAUTY AIDS SAID SALES FOR THE MONTH ENDED JAN 22 ROSE 11 TO 72 MILLION FROM 65 MILLION A YEAR EARLIER THE COMPANY SAID IT IS CONTINUING A SALES STRATEGY OF SELLING ITEMS OF HIGHER GROSS MARGINS BUT IN SOME CASES LOWER RETAIL PRICES TOTAL GROSS MARGINS INCREASED BUT COMPARABLESTORE SALES FOR THE PERIOD INCHED UP ONLY 04 TO 61 MILLION 9302180139 930218 WHO'S NEWS CHRISTOFLE PARIS CHRISTOFLE PARIS PARIS THIS FRENCH SILVERSMITH AND LUXURY GOODS COMPANY NAMED THIERRY CHAUNU PRESIDENT OF ITS US SUBSIDIARY CHRISTOFLE SILVER INC NEW YORK MR CHAUNU 36 YEARS OLD SUCCEEDS REGIS SANSON 52 WHO WAS NAMED PRESIDENT OF L'AMY INC SHELTON CONN A UNIT OF FRENCH DESIGNER EYEWEAR MAKER L'AMY MR CHAUNU WAS PREVIOUSLY MANAGING DIRECTOR OF THE FRENCH COOKING SCHOOL LE CORDON BLEU 9302180138 930218 HERCULES FIRSTQUARTER CHARGE WILMINGTON DEL HERCULES INC SAID IT PLANS TO RECORD A ONETIME NONCASH NET CHARGE OF ABOUT 238 MILLION FOR THE 1993 FIRST QUARTER TO REFLECT SEVERAL NEW ACCOUNTING STANDARDS THE CHEMICAL CONCERN EARNED 369 MILLION OR 79 CENTS A SHARE ON SALES OF 744 MILLION IN THE 1992 FIRST QUARTER HERCULES SAID ADOPTION OF THE ACCOUNTING STANDARDS WHICH RELATE TO RETIREE HEALTH AND LIFE INSURANCE BENEFITS DISABILITY BENEFITS WORKERS COMPENSATION AND INCOME TAXES WON'T AFFECT CASH FLOW 9302180137 930218 WHO'S NEWS FIRST UNION CORP FIRST UNION CORP CHARLOTTE NC FRANK H DUNN JR WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIRST UNION NATIONAL BANK OF NORTH CAROLINA A SUBSIDIARY OF THIS BANK HOLDING COMPANY MR DUNN 55 YEARS OLD HAD BEEN PRESIDENT OF THE UNIT HE SUCCEEDS JOHN R GEORGIUS 48 WHO REMAINS PRESIDENT OF FIRST UNION CORP ADDITIONALLY MALCOLM E EVERETT III WAS NAMED PRESIDENT OF FIRST UNION NATIONAL BANK OF NORTH CAROLINA SUCCEEDING MR DUNN MR EVERETT 46 HAS SERVED AS EXECUTIVE VICE PRESIDENT OF FIRST UNION'S CENTRAL REGION IN NORTH CAROLINA AND AS HEAD OF THE GENERAL BANKING GROUP 9302180136 930218 CORRECTIONS & AMPLIFICATIONS S PATRICK SHOULDICE IS CONTINUING AS CHAIRMAN AND CHIEF EXECUTIVE OF NOWSCO WELL SERVICE LTD AFTER RESIGNING THE PRESIDENCY OF THE COMPANY TUESDAY'S WHO'S NEWS COLUMN IMPLIED THAT HE WAS RETIRING FROM ALL HIS POSITIONS THE DUTCH CENTRAL BANK LAST YEAR SOLD 400 METRIC TONS OF GOLD RESERVES THE AMOUNT WAS INCORRECTLY GIVEN AS 400 MILLION TONS IN YESTERDAY'S COMMODITIES COLUMN PENNWALT CORP A SUBSIDIARY OF SOCIETE NATIONALE ELF AQUITAINE MERGED WITH TWO OTHER COMPANIES IN 1990 AND IS NOW KNOWN AS ELF ATOCHEM NORTH AMERICA INC IN TUESDAY'S LABOR LETTER THE COMPANY WAS INCORRECTLY IDENTIFIED BY ITS OLD NAME 9302180135 930218 DOSKOCIL TO SELL A 25 STAKE TO PAY DEBT JOSEPH LITTLEJOHN & LEVY TO BUY 2 MILLION SHARES AND NAME 7 DIRECTORS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DOSKOCIL COS SAID THE INVESTMENT FIRM OF JOSEPH LITTLEJOHN & LEVY AGREED TO ACQUIRE ABOUT 25 OF DOSKOCIL'S COMMON STOCK AND APPOINT SEVEN MEMBERS TO AN EXPANDED 15PERSON BOARD UNDER THE AGREEMENT THE NEW YORK INVESTMENT FIRM WOULD BUY TWO MILLION NEWLY ISSUED DOSKOCIL COMMON SHARES FOR 15 EACH JOSEPH LITTLEJOHN ALSO MAY INCREASE ITS HOLDINGS TO 33 OF DOSKOCIL'S COMMON SHARES THROUGH PURCHASES IN THE OPEN MARKET DOSKOCIL SAID IT EXPECTS THE TRANSACTION WHICH IS SUBJECT TO APPROVAL BY ITS BANK GROUP TO CLOSE WITHIN 30 DAYS PROCEEDS WILL BE USED TO PAY DOWN DEBT SEPARATELY THE HUTCHINSON KAN MEAT PROCESSOR REPORTED A LOSS OF 286 MILLION OR 494 A SHARE FOR ITS FOURTH QUARTER ENDED JAN 2 INCLUDING A 32 MILLION PROVISION FOR PLANT CLOSINGS NET INCOME FOR THE YEAREARLIER PERIOD WAS 39 MILLION OR 68 CENTS A SHARE SALES FOR THE QUARTER INCREASED 45 TO 2181 MILLION FROM 2087 MILLION WITH HIGHER VOLUME PARTLY OFFSET BY LOWER PORK PRICES THE COMPANY ADDED IN NATIONAL OVERTHECOUNTER TRADING DOSKOCIL SHARES CLIMBED 175 TO CLOSE AT 1550 THE COMPANY CURRENTLY HAS 58 MILLION SHARES OUTSTANDING YVONNE CLIFF A GENERAL PARTNER IN JOSEPH LITTLEJOHN SAID SHE AND PARTNERS PETER JOSEPH ANGUS LITTLEJOHN AND PAUL LEVY WOULD BECOME DOSKOCIL DIRECTORS AND WILL SELECT MEAT INDUSTRY FIGURES FOR THE REMAINING SEATS SOME OF JOSEPH LITTLEJOHN'S PARTNERS WERE INVOLVED IN A 1989 LEVERAGED BUYOUT OF REXENE CORP A DALLAS SPECIALTY CHEMICALS MAKER THAT PAID INVESTORS A LARGE SPECIAL DIVIDEND FINANCED WITH JUNK BONDS ONLY TO FILE FOR FEDERAL BANKRUPTCYCOURT PROTECTION IN 1991 IT EMERGED FROM BANKRUPTCY LAST YEAR DOSKOCIL ITSELF HAS STRUGGLED FROM A DEBT BURDEN TAKEN ON IN ITS 1988 TAKEOVER OF WILSON FOODS CORP IN 1990 IT ENTERED BANKRUPTCY PROCEEDINGS EMERGING THE FOLLOWING YEAR THEODORE A MYERS CHIEF FINANCIAL OFFICER SAID THE REORGANIZATION LEFT IT WITH A RESTRICTIVE BANK FACILITY THAT MADE IT DIFFICULT TO EXPAND HE SAID THE COMPANY HOPES TO SLASH DEBT AND NEGOTIATE A MORE FLEXIBLE BANK AGREEMENT AFTER THE STOCK SALE IN THE PAST YEAR THE COMPANY CLOSED HOGSLAUGHTERING AND PROCESSING PLANTS IN OKLAHOMA CITY LOGANSPORT IND AND BURLINGHAM IND TRYING TO BOOST RESULTS BY DITCHING THE LOWERMARGIN FRESH MEAT AND SLAUGHTER BUSINESS TO CONCENTRATE ON HIGHERMARGIN PROCESSED MEATS THE COMPANY ALSO TRIED IN THE FALL TO RAISE FUNDS THROUGH A PUBLIC OFFERING OF 22 MILLION SHARES BUT WITHDREW THE OFFERING AFTER FAILING TO GET THE PRICE IT SOUGHT THIS ACCOMPLISHES THE SAME THING THE OFFERING WOULD HAVE SAID JEFF VILLWOCK AN ANALYST AT JOHNSON RICE & CO NEW ORLEANS THERE'LL BE SEVERAL BANK GROUPS TRYING TO GET THEIR BUSINESS NOW 9302180134 930218 WHO'S NEWS DEATH OF MICROTEL CHAIRMAN ROCHESTER NY LOREN ANSLEY MICROTEL FRANCHISE & DEVELOPMENT CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DIED OF A HEROIN OVERDOSE ACCORDING TO THE MONROE COUNTY MEDICAL EXAMINER HOWEVER OFFICIALS STILL ARE TRYING TO DETERMINE WHETHER MR ANSLEY'S DEATH WAS AN ACCIDENT SUICIDE OR HOMICIDE SAID A SENIOR INVESTIGATOR IN THE MEDICAL EXAMINER'S OFFICE MR ANSLEY'S BODY WAS DISCOVERED IN DECEMBER IN AN APARTMENT IN THE NEARBY SUBURB OF GREECE HE INVENTED MICROTEL'S CONCEPT OF HOTELS WITH NINEFOOT BY 12FOOT ROOMS THAT RENT FOR 20 TO 30 A NIGHT MR ANSLEY WAS 47 MICROTEL OFFICIALS COULDN'T BE REACHED 9302180133 930218 INDUSTRY FOCUS EUROPE'S PC MARKET THRIVES DESPITE WEAK ECONOMIES CONSUMER FOCUS AND PRICE WAR OPEN MORE HOMES TO BIGBRAND MACHINES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL EUROPEAN COMPUTER SHOPPERS ARE BUCKING THE TREND DESPITE RECESSION IN BRITAIN AND GERMANY AND SLOWING ECONOMIES ELSEWHERE ON THE CONTINENT PERSONAL COMPUTER SALES IN EUROPE ARE LIVELY THE WHOLE PC MARKET IS GOING IN THE REVERSE DIRECTION OF THE REST OF EUROPE SAYS WILLIAM MCCRACKEN HEAD OF INTERNATIONAL BUSINESS MACHINES CORP'S EUROPEAN PC BUSINESS WE HAD A BANNER FOURTH QUARTER SO DID MOST OTHERS IN THE EUROPEAN PC MARKET ACCORDING TO A NEW WALL STREET JOURNALEUROPE/DATAQUEST REPORT ON THE EUROPEAN PC MARKET IN ASSOCIATION WITH DATAQUEST EUROPE LTD A MARKETRESEARCH UNIT OF DUN & BRADSTREET CORP THE JOURNAL IS BEGINNING QUARTERLY REPORTS ON THE 2766 BILLION EUROPEAN PC MARKET THE MOST VISIBLE AND AMONG THE FASTESTGROWING SEGMENTS IN THE EUROPEAN COMPUTER MARKET THE RESULTS SHOW THE INDUSTRY SHIPPED 34 MILLION PCS ACROSS EUROPE IN THE FOURTH QUARTER A 208 RISE EUROPEAN SHIPMENTS FOR THE YEAR ROSE 12 TO 939 MILLION UNITS THE IMMEDIATE SPUR TO THE FOURTHQUARTER GROWTH WAS A GLOBAL PC PRICE WAR THAT CUT MANUFACTURERS' LIST PRICES IN FRANCE FOR INSTANCE AS MUCH AS 61 IN THE LAST 10 MONTHS OF 1992 BUT ANOTHER SUBTLER FACTOR IS AT WORK INDUSTRY EXECUTIVES SAY THE EUROPEAN MARKET FOR HOME AND SMALLBUSINESS PCS IS FINALLY BECOMING A TRUE MASS MARKET TARGETED BY BRANDNAME MANUFACTURERS AND SERVED BY CONVENTIONAL RETAIL CHAINS IN EVERMORE AGGRESSIVE PROMOTIONS THIS IS A SEA CHANGE FOR EUROPE WHERE RELATIVELY HIGH PRICES AND LOW DISPOSABLE INCOMES HAVE KEPT MOST HOMES WITHOUT PCS ON AVERAGE SAYS MARKETRESEARCH FIRM INTERNATIONAL DATA CORP JUST 15 OF GERMAN AND DUTCH HOUSEHOLDS OWN PCS THE AVERAGE IN SOUTHERN EUROPE IS 6 WITH SUCH SLIM PICKINGS MOST BIG BRANDNAME PC MAKERS SUCH AS IBM ITALY'S ING C OLIVETTI & CO AND COMPAQ COMPUTER CORP OVERLOOKED THE EUROPEAN CONSUMER IN THEIR RUSH TO CATER TO THE BIGBUDGET CORPORATE PC BUYER AS A RESULT THE EUROPEAN HOME MARKET HAS BEEN DOMINATED BY SUCH LOWPRICE MAKERS AS COMMODORE INTERNATIONAL LTD NOW THAT'S CHANGING AND IT MEANS AFFORDABLE BIGNAME PCS FOR EUROPEAN CONSUMERS A NEW PHASE IN THE COMPUTERIZATION OF EUROPE'S ECONOMIES AND A NEW MIX OF WINNERS AND LOSERS IN THE INDUSTRY WITH THE LIKES OF COMMODORE ATARI CORP AND BRITAIN'S AMSTRAD CONSUMER ELECTRONICS PLC BESET BY IBM COMPAQ APPLE COMPUTER INC AND OTHERS IT'S ALSO THE FIRST STEP TOWARD WHAT THE PC INDUSTRY HOPES WILL BECOME ITS NEXT POT OF GOLD MAKING THE PC MICROPROCESSOR THE BRAINS OF A NEW CONSUMER INDUSTRY CALLED MULTIMEDIA JUST STARTING TO APPEAR ARE EARLY VERSIONS OF HYBRID DEVICES THAT WILL ONE DAY CRUNCH NUMBERS READ ALOUD FROM ENCYCLOPEDIAS AND OTHER REFERENCE MATERIAL ON COMPACT DISK SHOP BY TELEPHONE PLAY BACK VIDEOS OR JUST RUN EVERFANCIER COMPUTER GAMES MEANWHILE FOLLOWING APPLE'S EARLY EXAMPLE MOST OF THE MAJOR PC MAKERS IN THE PAST YEAR HAVE INTRODUCED PLUG AND PLAY PRODUCTS AIMED ESPECIALLY AT NEOPHYTE BUYERS THESE PACKAGES OFTEN IN ONE BIG BOX CONTAIN ALL THE PC COMPONENTS A CONSUMER TYPICALLY NEEDS COMPUTER KEYBOARD MEMORY MONITOR AND SOFTWARE WITH THEM COME SERVICES ONCE UNHEARD OF IN THE CONSUMER MARKET INCLUDING 24HOUR TELEPHONE HELP LINES FOR FRUSTRATED BUYERS AND THREEYEAR PRODUCT WARRANTIES OFTEN WITH ONSITE REPAIRS FOR THE FIRST YEAR CONVENTIONAL RETAIL CHAIN STORES RATHER THAN SPECIALIZED COMPUTER DEALERS ARE GAINING MOST FROM THE CONSUMER TREND FNAC FRANCE'S BIGGEST ELECTRONICS RETAILER SAW ITS PC SALES JUMP 30 LAST YEAR WHILE THE FRENCH PC MARKET AS A WHOLE ROSE 189 BUSINESS IS SO GOOD THAT FNAC LAST DECEMBER OPENED ITS FIRST SHOP DEDICATED EXCLUSIVELY TO COMPUTERS THE BIG MANUFACTURERS ARE DEFINITELY MORE OPEN TO COOPERATION WITH US NOW THAN IN THE PAST SAYS VICTOR JACHIMOWICZ OF FNAC'S MARKETINGSTUDIES DEPARTMENT WHAT'S MAKING ALL THIS HAPPEN IS PRICE WHEREAS ONCE ONLY EUROPEANS WITH BIG BANK OR EXPENSE ACCOUNTS COULD AFFORD AN IBM OR COMPAQ PC FOR THE HOME LOWBUDGET MODELS OF ALL THE MAJOR BRANDS HAVE APPEARED IN THE PAST YEAR EVEN CHEAPER GENERIC CLONES ARE AVAILABLE FROM BRITAIN'S AMSTRAD GERMANY'S VOBIS MICROCOMPUTER AG AND OTHERS BUT THE CACHET OF BIG BRANDS IS PROVING A POTENT SALES LURE AT DIXONS PLC'S ELECTRICALPRODUCTS RETAIL CHAIN IN LONDON COMPLETE IBM PC PACKAGES SELL FOR 74999 1065 OLIVETTI DESKTOP PCS COST 69999 AND LOWPRICE APPLES ARE DUE IN THE SHOPS SOON WHILE STILL STEEPER THAN TYPICAL US PRICES INDUSTRY EXECUTIVES SAY HIGHER EUROPEAN LABOR AND DISTRIBUTION COSTS ADD AT LEAST 15 TO PRICES THOSE PRICES ARE FAR LOWER THAN IN THE PAST IN THE LAST 10 MONTHS OF 1992 LIST PRICES OF THE MOST COMMON DESKTOP PC MODELS IN BRITAIN FELL 27 TO 46 FALLING PRICES OF COURSE ALSO TRIM INDUSTRY REVENUES AND DESPITE THE BOOM IN NUMBERS OF PCS SHIPPED THE LISTPRICE VALUE OF ALL PCS SHIPPED IN THE FOURTH QUARTER ROSE JUST 65 IN THE FOURTH QUARTER TO 89 BILLION ACCORDING TO THE JOURNAL/DATAQUEST REPORT THAT THERE WAS ANY INCREASE AT ALL THE FIRST IN THIS INDICATOR FOR MORE THAN A YEAR ACCORDING TO CHRIS FELL DATAQUEST'S EUROPEAN PCSERVICE DIRECTOR IS CHIEFLY DUE TO THE GROWING MARKET SHARE TAKEN BY HIGHERPOWERED HIGHERPRICE PCS BASED ON INTEL CORP'S 486 MICROPROCESSORS ESPECIALLY POPULAR WITH BUSINESSES SHIPMENTS OF PCS TO BUSINESS SCIENTIFIC AND OTHER PROFESSIONAL CUSTOMERS JUMPED 325 TO 26 MILLION MACHINES IN THE FOURTH QUARTER FROM A YEAR EARLIER WHILE THE LISTPRICE VALUE ROSE 72 TO 78 BILLION AMONG MANUFACTURERS A BIG WINNER IN THE QUARTER WAS SECONDRANKING COMPAQ WHICH GAINED 25 PERCENTAGE POINTS TO TAKE AN 85 SHARE OF THE PROFESSIONAL PC MARKET IBM'S MARKETLEADING POSITION IN THAT MARKETSEGMENT ERODED SLIGHTLY TO 17 FROM 182 A YEAR EARLIER IN THE HOMEPC MARKET HOWEVER IBM GAINED IN MARKET SHARE TO 99 FROM 86 TAKING INTO ACCOUNT ITS NEW SEPARATE AMBRABRAND SUBSIDIARY COMMODORE THE HISTORIC HOMEPC MARKET LEADER SAW ITS SHARE ERODE TO 428 FROM 457 A YEAR EARLIER FOR THE PC INDUSTRY HOWEVER THERE'S A PUZZLER IN THE NUMBERS HOW LONG WILL THE GOOD TIMES LAST PHILIPPE DE MARCILLAC DATAQUEST'S EUROPEAN RESEARCH DIRECTOR SAYS HE EXPECTS SALES TO REMAIN STRONG IN THE FIRST HALF BUT THEN SLOW AS THE INDUSTRY PRICE WAR COOLS OFF IN FACT HE CALLS THE CURRENT SALES RATE A POSSIBLE BUBBLE GENERATED BY PRICE CUTS THE AVERAGE LONGTERM INDUSTRY GROWTH RATE IS ABOUT 12 HE SAYS FOR THE INDUSTRY THAT POSSIBILITY HAS A SOBERING MESSAGE IF IT OVEREXPANDS IN ANTICIPATION OF 20PLUS GROWTH RATES IT MAY GET CAUGHT WITH TOO MANY EMPLOYEES AND FACTORIES WHEN SALES SLOW HOWEVER NICE WHEN THEY'RE HAPPENING HE SAYS THESE BOOMS DON'T LAST THEY'LL COME BACK TO NORMALITY 9302180132 930218 REORGANIZATION FILED BY TWA SLASHES CLAIMS BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL TRANS WORLD AIRLINES MOVED ONE STEP CLOSER TO EMERGING FROM ITS YEARLONG STAY IN CHAPTER 11 OF THE US BANKRUPTCY CODE WITH THE FILING OF A PROPOSED PLAN OF REORGANIZATION SUBMITTED IN FEDERAL COURT IN DELAWARE THE PLAN CALLS FOR THE ELIMINATION OF ABOUT 4 BILLION IN CLAIMS THE DISTRIBUTION OF NEW COMMON AND PREFERRED STOCK TO THE AIRLINE'S CREDITORS AND EMPLOYEES AND THE ISSUANCE OF NEW DEBT SECURITIES TWA MT KISCO NY SAID IT EXPECTS CONFIRMATION OF THE PLAN AND EMERGENCE FROM CHAPTER 11 BY LATE THIS SPRING THE PLAN SAYS THAT TWA WILL CONTINUE TO FOCUS PRIMARILY ON STRENGTHENING ITS POSITION IN THE US OPERATIONS WILL REMAIN CENTERED AT HUBS IN ST LOUIS NEW YORK AND ATLANTA THE NUCLEUS OF TWA'S INTERNATIONAL OPERATIONS WILL BE ITS HUB AT CHARLES DE GAULLE INTERNATIONAL AIRPORT IN PARIS THE PLAN SAYS AS DETAILED EARLIER TWA'S 25000 EMPLOYEES WHO HAVE GRANTED ABOUT 660 MILLION IN WAGE AND BENEFIT CONCESSIONS WILL RECEIVE 45 OF THE COMMON STOCK ISSUED UNDER THE PLAN THE AIRLINE'S CREDITORS IN EXCHANGE FOR DEBT RELIEF WILL GET THE REMAINING 55 OF THE COMMON STOCK AS WELL AS PREFERRED STOCK AND VARIOUS NEW DEBT SECURITIES THE PLAN ESTABLISHES THE FRAMEWORK OF A SOUND DEBT AND CAPITAL STRUCTURE UNDER WHICH TWA CAN RETURN TO PROFITABILITY AND ONCE AGAIN BECOME A STRONG COMPETITIVE FORCE IN THE AIRLINE INDUSTRY SAID GLENN R ZANDER ONE OF THE AIRLINE'S COCHIEF EXECUTIVES SINCE IT ENTERED CHAPTER 11 TWA'S MANAGEMENT RESPONSIBILITIES HAVE BEEN TRANSFERRED FROM FORMER OWNER CARL ICAHN TO A COMMITTEE OF CREDITORS AND EMPLOYEES TWA SAID ITS OPERATIONS ARE EXPECTED TO EXPAND MODERATELY OVER FIVE YEARS THE AIRLINE SAID IT WILL ELIMINATE UNPROFITABLE OPERATIONS AND UTILIZE A LOWCOST STRUCTURE TO GENERATE POSITIVE NET CASH FLOWS THE AIRLINE ALSO SAID IT WILL OPERATE MORE EFFICIENTLY BY USING SMALLER NARROWBODY AIRCRAFT AND THAT ALL NEW AIRCRAFT ADDED TO THE FLEET WILL BE LEASED THUS LIMITING CAPITAL EXPENDITURES TO GROUND EQUIPMENT AND AIRCRAFT ENHANCEMENTS PROPOSED DISTRIBUTIONS TO CREDITORS UNDER THE PLAN ARE LISTED IN A DISCLOSURE STATEMENT THAT TWA FILED SEPARATELY WITH THE BANKRUPTCY COURT THE COURT IS EXPECTED TO SET A HEARING ON THE DISCLOSURE STATEMENT WHICH MUST BE APPROVED PRIOR TO THE REORGANIZATION PLAN 9302180131 930218 TECHNOLOGY CHINESE VERSION OF RU486 BROUGHT TO US BY GROUP NEW YORK AN ABORTIONRIGHTS GROUP HAS BROUGHT INTO THE US A DRUG IT SAYS IS THE CHINESE VERSION RU486 THE ABORTION PILL MADE BY FRENCH COMPANY ROUSSELUCLAF LAWRENCE LADER PRESIDENT OF ABORTION RIGHTS MOBILIZATION SAID THE PEKING UNION MEDICAL COLLEGE IN BEIJING HAS GRANTED HIS GROUP THE RIGHT TO TEST THE CHINESE PILL THE INSTITUTION ALSO SUPPLIED THE GROUP FOR AN UNDISCLOSED SUM WITH AT LEAST 100 200MILLIGRAM PILLS MR LADER SAID ROUSSELUCLAF SELLS RU486 UNDER TIGHTLY CONTROLLED CONDITIONS IN FRANCE BRITAIN AND SWEDEN BUT THE COMPANY WHICH IS MAJORITY OWNED BY HOECHST AG OF GERMANY HAS RESISTED PRESSURE FROM WOMEN'S AND ABORTIONRIGHTS' GROUPS IN THE US TO ALLOW THE DRUG INTO THE US CITING THE INFLAMMATORY POLITICAL CLIMATE SURROUNDING THE ABORTION ISSUE OFFICIALS OF ROUSSELUCLAF COULDN'T BE REACHED FOR COMMENT INITIAL TESTS OF THE DRUG SHOW IT IS CHEMICALLY THE SAME AS RU486 MR LADER SAID ADDING THAT ANIMAL TESTS WILL BE COMPLETED IN EARLY MARCH THOSE STUDIES WILL BE SUBMITTED TO THE FOOD AND DRUG ADMINISTRATION ALONG WITH A PLAN FOR FURTHER TESTS HE SAID BECAUSE THE PILLS ARE INTENDED FOR RESEARCH ONLY THE GROUP HASN'T VIOLATED THE FDA BAN ON PERSONAL IMPORTATION OF THE DRUG NOR HAS IT INFRINGED ON ROUSSELUCLAF'S PATENT MR LADER SAID 9302180130 930218 HEARD ON THE STREET T ROWE PRICE SMALLCAP FUND MANAGER FINDS THERE ARE FEWER NIGHTMARES IN YAWNER STOCKS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DOWN BUT NOT OUT THAT'S PRESTON ATHEY'S VERDICT ON THIS WEEK'S SHARP RETREAT BY SMALLCOMPANY STOCKS MR ATHEY WHO MANAGES THE 350 MILLION T ROWE PRICE SMALLCAP VALUE FUND THINKS THERE ARE BETTER DAYS AHEAD FOR SMALL STOCKS BUT HE RECKONS THE SAFEST SMALL COMPANIES ARE TO BE FOUND FAR FROM THE LIMELIGHT INDEED THE BORING STOCKS THAT MR ATHEY FAVORS YAWNERS LIKE LA QUINTA MOTOR INNS INC AN ECONOMY MOTEL CHAIN OR PUERTO RICAN CEMENT CO HAVE WEATHERED THIS WEEK'S STORM REMARKABLY WELL LA QUINTA ACTUALLY ROSE IN PRICE TUESDAY WHEN MOST SMALL STOCKS WERE KNOCKED DOWN 3 OR MORE ALL TOLD MR ATHEY'S SMALLCAP VALUE FUND FINISHED THE DAY WITH A LOSS OF JUST 18 AS THE NAME OF HIS FUND IMPLIES MR ATHEY SPECIALIZES IN LOOKING FOR SMALL VALUE STOCKS WHICH LOOK INEXPENSIVE RELATIVE TO THEIR EARNINGS OR ASSETS HE SAYS THESE STOCKS PROVIDE A MODICUM OF PROTECTION FROM THE WILD PRICE SWINGS THAT BEDEVIL SMALLSTOCK INVESTORS IT IS A ROUGH RIDE INVESTING IN SMALL STOCKS MR ATHEY SAYS HE THINKS THAT INVESTORS SHOULD BRACE THEMSELVES FOR PERIODIC SELLOFFS LIKE TUESDAY'S CARNAGE WHEN THE NASDAQ COMPOSITE INDEX FELL 36 MANY GLAMOROUS BUT EXPENSIVE SMALL STOCKS GOT HIT EVEN HARDER LOSING 7 OR MORE DESPITE THAT SETBACK MR ATHEY EXPECTS SMALL COMPANIES TO CONTINUE THEIR WINNING WAYS FOR A WHILE TO COME AS SMALLSTOCK EARNINGS GROW FASTER THAN BIGCOMPANY PROFITS HE NOTES THAT SMALLCOMPANY SHARES USUALLY OUTPERFORM BIGCOMPANY SHARES FOR FOUR TO SIXYEAR CYCLES ALTHOUGH THESE WINNING STREAKS ARE PUNCTUATED BY FREQUENT CORRECTIONS DESPITE ONE SUCH CORRECTION IN 1992 SMALLCAP VALUE FUND HAD A TOTAL RETURN OF 209 LAST YEAR INCLUDING PRICE CHANGES AND REINVESTED DIVIDENDS THAT BEAT THE 76 RETURN FOR THE STANDARD & POOR'S 500STOCK INDEX IN THE THREE YEARS THROUGH JAN 31 THE FUND GAINED 172 A YEAR ACCORDING TO LIPPER ANALYTICAL SERVICES THAT COMPARES WITH AN ANNUAL RETURN OF 137 FOR THE S&P 500 MR ATHEY IS A SIXFOOT THREEINCH 43YEAROLD WHO ONCE WORKED AS AN AIDE TO THE NAVY'S LEGENDARY ADM HYMAN RICKOVER HOBBIES THE BALTIMOREBASED FUND MANAGER SINGS BASS IN A MEN'S A CAPPELLA GROUP IN HIS SPARE TIME BUT LATELY HE HAS HAD LESS TIME TO SING BECAUSE IN THE PAST 13 MONTHS HIS FUND HAS GROWN NEARLY SIXFOLD IN SIZE WILL HE CLOSE HIS BURGEONING FUND TO NEW INVESTORS AS SOME OTHERS HAVE DONE WE'RE NOT ABOUT TO LET THE CASH FLOW GET OUT OF CONTROL IN A WAY THAT WOULD BE DETRIMENTAL TO THE CURRENT SHAREHOLDERS MR ATHEY SAYS WHEN INVESTORS BUY SMALL STOCKS THEY OFTEN CONSIDER ONLY CUTTINGEDGE TECHNOLOGY FIRMS MR ATHEY THINKS THAT THERE'S GREAT PROMISE IN BIOTECHNOLOGY BUT NONE OF US KNOWS WHICH ONE OR TWO COMPANIES WILL HIT THE JACKPOT HE IS EVEN MORE LEERY OF INITIAL PUBLIC OFFERINGS SMALL INVESTORS BY AND LARGE SHOULD STAY AWAY FROM IPOS HE SAYS THE DECK IS STACKED AGAINST THEM AND THE GAME IS RIGGED IN FAVOR OF INSTITUTIONAL INVESTORS INSTEAD HE FAVORS STOCKS WITH SOME BLEMISH SOME WART THAT MAKES THEM CHEAP I LOOK FOR A CATALYST TO REALIZE THE COMPANY'S POTENTIAL SAYS MR ATHEY WHAT GOOD IS IT TO BUY A CHEAP STOCK IF THE PRESIDENT IS AGED 45 AND OWNS 51 OF THE VOTING STOCK MR ATHEY'S BIGGEST HOLDING IS LA QUINTA MOTOR INNS A CORPORATION BASED IN SAN ANTONIO TEXAS HE DOESN'T OWN ANY OF LA QUINTA MOTOR INNS LP A LIMITED PARTNERSHIP THAT OPERATES 31 LA QUINTA MOTELS THE CHAIN FELL VICTIM TO THE RECESSION IN LODGING IN THE MIDTOLATE 1980S HE SAYS IN 1990 AN INVESTMENT GROUP THAT INCLUDED THE BASS BROTHERS OF TEXAS TOOK HALF THE SEATS ON THE BOARD AND THE CHIEF EXECUTIVE EVENTUALLY RESIGNED GARY MEAD WHO BECAME LA QUINTA'S CHIEF EXECUTIVE IN EARLY 1992 IS SINGLEHANDEDLY MY CATALYST MR ATHEY SAYS IN THE PAST YEAR MR MEAD HAS CHANGED SOME TOP EXECUTIVES AT LA QUINTA AND HAS TAKEN WRITEDOWNS TO DEAL WITH UNPROFITABLE OPERATIONS MR MEAD HAS OPTIONS ON 650000 SHARES OF STOCK MR ATHEY NOTES IF GARY MEAD MAKES THIS THING HUM OVER A PERIOD OF FIVE YEARS HE'LL BECOME A WEALTHY MAN ANOTHER FAVORITE STOCK FOR MR ATHEY IS PUERTO RICAN CEMENT BASED IN SAN JUAN WHICH AT 23 1/4 SELLS FOR ONLY 13 TIMES TRAILING 12MONTH EARNINGS THAT'S WELL BELOW THE 19 MULTIPLE FOR THE MEDIAN PROFITABLE NEW YORK STOCK EXCHANGE ISSUE ACCORDING TO FACTSET DATA SYSTEMS MR ATHEY EXPECTS THE PUERTO RICAN ECONOMY TO IMPROVE DESPITE THE POSSIBLE CLINTON ADMINISTRATION BLOW TO DRUG COMPANIES MANUFACTURING THERE AND PUERTO RICAN CEMENT RECENTLY FINISHED AN INVESTMENT PROGRAM THAT DRASTICALLY LOWERED ITS CEMENT PRODUCTION COST THEY ARE NOW EFFICIENT ENOUGH THAT THEY CAN START TO EXPORT CEMENT NOT ONLY TO OTHER CARIBBEAN ISLANDS BUT EVEN TO FLORIDA SAYS MR ATHEY MR ATHEY THOUGHT THAT EARNINGS WOULD REBOUND WITH THE ECONOMY BUT NOW HE THINKS THE BIG CATALYST IS ITS JANUARY ACQUISITION OF GENERAL ELECTRIC CO'S GE CONSULTING UNIT ALSO IN COMPUTER PROGRAMMING SERVICES THE NEW BUSINESS DOUBLES THE SIZE OF KEANE TO ABOUT 190 MILLION IN SALES MR ATHEY EXPECTS ECONOMIES OF SCALEPLUS THE ELIMINATION OF A LOT OF HIGHCOST GE OVERHEAD TO BOOST EARNINGS AT KEANE IN TWO YEARS TO 2 A SHARE THAT COULD PUSH THE STOCK PRICE TO 40 BY THE END OF 1994 YESTERDAY KEANE CLOSED AT 24 7/8 9302180129 930218 BUSINESS BRIEFS FOURTH FINANCIAL CORP INTENDS TO BUY COMMERCIAL LANDMARK INC FOR AN UNDISCLOSED NUMBER OF COMMON SHARES WILLCOX & GIBBS INC AGREED IN PRINCIPLE TO ACQUIRE SACKS ELECTRICAL SUPPLY CO TRACOR INC RECEIVED A 161 MILLION CONTINUATION OF A NAVY CONTRACT TO SUPPORT ADVANCED SUBMARINE DESIGN AND DEVELOPMENT SL INDUSTRIES INC ACQUIRED CONDOR DC POWER SUPPLIES INC AND ASSETS OF CONDOR'S MEXICAN AFFILIATE A UNIT OF STONE & WEBSTER INC RECEIVED A CONTRACT VALUED AT MORE THAN 30 MILLION TO PROVIDE MAINTENANCE WORK AT FOUR CONNECTICUT NUCLEAR GENERATING PLANTS OF NORTHEAST UTILITIES SERVICE CO 9302180128 930218 INTERNATIONAL RUSSIA TREMBLES UNDER THE STRAIN OF GOVERNMENT DIVISION AND DRIFT YELTSIN HEAD OF PARLIAMENT PUT OFF A SHOWDOWN IN POWERSHARING PACT BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA IS POLITICALLY PARALYZED PRESIDENT BORIS YELTSIN ONCE POPULAR AND STRONG ENOUGH TO BAN THE COMMUNIST PARTY IS LOCKED IN A FIERCE POWER STRUGGLE WITH THE HEAD OF PARLIAMENT HIS DIVIDED GOVERNMENT IS WORKING AT CROSSPURPOSES EVERYBODY JUST WANTS TO DESTROY EACH OTHER SAYS YURI DAVIDOFF WHO HEADS A POLITICAL SECTION AT THE USACANADA INSTITUTE A RUSSIAN THINK TANK THE HERITAGE OF BOLSHEVISM IS STILL VERY STRONG IN THIS COUNTRY WHAT THEY'RE TRYING TO GAIN IS A COMPREHENSIVE VICTORY RUSSIA IS SHAKING ADDS IONA ANDRONOV A CONSERVATIVE MEMBER OF THE RUSSIAN PARLIAMENT IT ALSO IS DRIFTING TOWARD SERIOUS TROUBLE WHILE FREE MARKET REFORMS ARE MUDDLING ALONG THE ECONOMY IS ON THE VERGE OF HYPERINFLATION HYPERINFLATION WHICH MANY ECONOMISTS DEFINE AS MONTHLY INFLATION OF 50 OR MORE WOULD DESTROY SUCH PROGRESS AS THE REFORMS HAVE MADE AND CAUSE SOCIAL TURMOIL INFLATION IN JANUARY OFFICIALLY REACHED 30 AND THE RUBLE HAS FALLEN TO AN UNOFFICIAL RATE OF 660 RUBLES TO THE DOLLAR FROM 100 RUBLES IN JULY CRIMINAL ACTIVITY AND LAWLESSNESS ARE REACHING NEW HEIGHTS OFFICIAL REPORTS SAY AND RUSSIAN NATIONALISM WITH STRONG ANTIWESTERN OVERTONES IS ON THE RISE PEOPLE NEED A GOVERNMENT TO TRUST NOW THERE ISN'T ONE SAYS MR DAVIDOFF INSTEAD OF BUILDING TRUST THE KEY PLAYERS INCLUDING MR YELTSIN ARE PROVING UNPREDICTABLE SEEMINGLY MORE INTERESTED IN HOLDING ONTO POWER THAN GOVERNING MR YELTSIN DISAPPEARS AT CRUCIAL MOMENTS HE IS ALSO NOTED FOR HIS SPHINX ACT PRESIDING OVER MEETINGS BUT SAYING NOTHING PRIME MINISTER VIKTOR CHERNOMYRDIN AFTER A SERIES OF GAFFES HAS BECOME THE BUTT OF JOKES THE VICE PREMIER FOR FINANCE BORIS FYODOROV AN ECONOMIST WELLVERSED IN WESTERN TECHNIQUES HAS MANY IDEAS FOR FIXING THE ECONOMY BUT IN HIS SIX WEEKS IN OFFICE HE HASN'T ACTED ON THEM VIKTOR GERASCHENKO HEAD OF THE CENTRAL BANK AND A MEMBER OF THE CABINET WHO WAS CHOSEN BY PARLIAMENT IS RUNNING HIS OWN SHOW HE IS WIDELY BLAMED FOR FUELING INFLATION THE HEAD OF PARLIAMENT RUSLAN KHASBULATOV HAS GROWN STRONGER AS MR YELTSIN'S POWER HAS APPEARED TO EBB THE KEY ISSUE IS WHETHER RUSSIA SHOULD BE RULED BY THE PRESIDENT OR PARLIAMENT IN PRACTICAL TERMS THIS BOILS DOWN TO WHO PICKS THE PRIME MINISTER AND OTHER MEMBERS OF GOVERNMENT MR YELTSIN NOW APPOINTS THE PRIME MINISTER WITH PARLIAMENT'S APPROVAL HE CAN'T CHOOSE SOMEBODY THAT PARLIAMENT DOESN'T LIKE BUT HE CAN FIRE ANYONE AFTER THE AUGUST 1991 COUP ATTEMPT AGAINST SOVIET LEADER MIKHAIL GORBACHEV RUSSIAN POLITICS WERE CLEARER MR YELTSIN WAS A HERO HE SEIZED SPECIAL PRESIDENTIAL POWERS INCLUDING THE ABILITY TO RULE BY DECREE AND TO PICK THE PRIME MINISTER HE IGNORED THE LACK OF A CONSTITUTION HIS SUPPORTERS APPLAUDED BECAUSE THEY SAW MR YELTSIN AS SERIOUSLY COMMITTED TO CHANGING RUSSIA NOW MR YELTSIN WANTS TO KEEP AND EVEN EXTEND HIS SPECIAL POWERS BUT MR KHASBULATOV WANTS PARLIAMENT TO RUN THINGS AND PICK THE PRIME MINISTER HE CALLS MR YELTSIN A DICTATOR AND CALLS FOR A CONSTITUTION SPELLING OUT THE LIMITS ON PRESIDENTIAL POWER IT WAS ANNOUNCED YESTERDAY THAT THE TWO MEN AGREED TO WORK OUT A POWERSHARING AGREEMENT TEAMS OF FIVE ADVISERS FROM EACH SIDE HAVE 10 DAYS TO FORGE A PLAN IF THEY DO A REFERENDUM SCHEDULED FOR APRIL IN WHICH THE PEOPLE WOULD BE ASKED TO CHOOSE BETWEEN THE PRESIDENT AND PARLIAMENT WILL BE CANCELED MANY WOULD BREATHE EASIER IF THE REFERENDUM WERE CANCELED MR YELTSIN PROBABLY WOULD WIN THOUGH THE VOTE COULD DEEPEN DIVISIONS BUT MANY OBSERVERS ARE SKEPTICAL A SOLUTION WILL BE FOUND NOBODY HAS ANY IDEA WHAT'S GOING ON IN THIS COUNTRY SAYS A YELTSIN AIDE WE ARE PREPARING FOR EVERYTHING I JUST HOPE I'LL HAVE A JOB AT THE END OF ALL THIS 9302180127 930218 INTERNATIONAL BEIJING RELEASES STUDENTS HELD IN TIANANMEN PROTEST A WALL STREET JOURNAL NEWS ROUNDUP BEIJING WANG DAN THE SOFTSPOKEN STUDENT LEADER WHO WAS NO 1 ON THE CHINESE GOVERNMENT'S MOSTWANTED LIST AFTER THE 1989 TIANANMEN MASSACRE WAS RELEASED FROM PRISON FOUR MONTHS BEFORE THE END OF HIS FOURYEAR SENTENCE MR WANG 23 YEARS OLD WAS RELEASED ALONG WITH GUO HAIFENG 27 A FORMER BEIJING UNIVERSITY GRADUATE STUDENT XINHUA NEWS AGENCY SAID THAT ALL STUDENTS SENTENCED TO PRISON IN CONNECTION WITH TIANANMEN HAVE NOW BEEN SET FREE BUT HUMANRIGHTS ACTIVISTS DISPUTED THIS SAYING THAT MANY STUDENTS JAILED OUTSIDE BEIJING NEVER HAVE BEEN ACCOUNTED FOR THEY ALSO CITED THE CASE OF LIU GANG A BEIJING UNIVERSITY GRADUATE STUDENT WHO IS STILL IN JAIL XINHUA ALSO REPORTED THAT AUTHORITIES IN SHANGHAI RELEASED ZHU HONGSHENG A 76YEAROLD ROMAN CATHOLIC PRIEST WHO HAD BEEN SERVING A 15YEAR PRISON TERM AND THE GOVERNMENT RECENTLY RELEASED ONE OF THE COUNTRY'S LONGESTHELD POLITICAL PRISONERS WANG XIZHE TWO YEARS BEFORE HIS 14YEAR TERM WAS UP THE LATEST RELEASES COME TWO WEEKS BEFORE OLYMPIC COMMITTEE OFFICIALS ARE SCHEDULED TO ARRIVE IN BEIJING TO SURVEY POSSIBLE SITES FOR THE 2000 SUMMER GAMES ANALYSTS ALSO SAID BEIJING'S HUMANRIGHTS GESTURES ARE AIMED AT THE CLINTON ADMINISTRATION WHICH WILL SOON DECIDE WHETHER TO CONTINUE TO GRANT CHINA MOSTFAVOREDNATION TRADE STATUS 9302180126 930218 CAMPBELL SOUP POSTS LOSS OF 1159 MILLION FOR FISCAL 2ND PERIOD CAMDEN NJ CAMPBELL SOUP CO POSTED A NET LOSS OF 1159 MILLION OR 46 CENTS A SHARE FOR THE FISCAL SECOND QUARTER BECAUSE OF A PREVIOUSLY ANNOUNCED 300 MILLION CHARGE TO COVER THE COST OF CLOSING TWO FROZENFOOD PLANTS AND SELLING SEVERAL BUSINESSES EXCLUDING THE CHARGE WHICH AMOUNTED TO 119 A SHARE SECONDQUARTER PROFIT ROSE 15 COMPARED WITH YEAREARLIER NET OF 1606 MILLION OR 64 CENTS A SHARE SALES FOR THE QUARTER ENDED JAN 31 ROSE 24 TO 179 BILLION FROM 175 BILLION A YEAR EARLIER THE COMPANY'S KEY SOUP BUSINESS SHOWED IMPROVEMENT IN THE LATEST QUARTER AND SOME ANALYSTS ARE FORECASTING STRONGER RESULTS AS THE YEAR PROGRESSES SOUP ACCOUNTS FOR AN ESTIMATED 40 OF CAMPBELL'S PROFITS AND WALL STREET HAD BEEN CONCERNED WHEN SHIPMENTS ROSE ONLY 1 LAST YEAR BUT SOUP VOLUME INCREASED 3 IN THE MOST RECENT PERIOD AND NATWEST SECURITIES CORP ANALYST MICHAEL BRANCA PREDICTS SHIPMENTS WILL BE UP 4 IN THE YEAR THAT IS WHAT IS DRIVING THEIR PROFITABILITY HE SAID STILL THE COMPANY'S FROZENFOOD AND PEPPERIDGE FARM COOKIE BUSINESSES REMAIN UNDER PRESSURE IN ANNOUNCING PLANS TO CLOSE TWO FROZENFOOD PLANTS LAST WEEK CAMPBELL WILL HAVE JUST FOUR PLANTS CONTINUING TO OPERATE IN THE US THE COMPANY SAID THAT THE FUTURE OF ITS LEMENU FROZENENTREE LINE WAS BEING REEVALUATED AND THAT IT MIGHT BE INCORPORATED INTO THE BIGGER AND MORE SUCCESSFUL SWANSON LINE AND THE COMPANY BLAMED THE WEAK ECONOMY FOR A DROP IN SALES PROFIT AND VOLUME AT ITS PREMIUMPRICED PEPPERIDGE FARM COOKIE AND BISCUIT BUSINESS THE SECONDLARGEST BUSINESS SEGMENT WHICH PROVIDES 14 OF THE COMPANY'S ANNUAL EARNINGS IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CAMPBELL CLOSED AT 40625 DOWN 875 CENTS 9302180125 930218 MARKETSCAN COSMETICS GIANTS IMPERIL LITTLE RIVALS IN CROWDED CHASE AFTER BLACK CONSUMERS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL THE COSMETICS INDUSTRY IS PUTTING ON A NEW FACE IN THE PAST YEAR THE BIGGEST NAMES IN THE BUSINESS HAVE BEEN FALLING OVER ONE ANOTHER TO OFFER DARKERHUED FOUNDATIONS AND OTHER PRODUCTS FOR BLACK SKIN THE FRENETIC ACTIVITY COMES AT A TIME WHEN THE INDUSTRY IS GROWING AT A SLUGGISH PACE PROMPTING THE MAJOR PLAYERS TO LOOK TO SPECIALIZED SEGMENTS FOR INCREASED SALES IN THE CASE OF COSMETICS FOR BLACKS THIS SEGMENT IS SPURRING ON THE TOTAL COSMETICS MARKET SAYS ALLYN SEIDMAN SENIOR VICE PRESIDENT OF PUBLICITY AND PROMOTIONS FOR REVLON INC THAT'S THE GOOD NEWS THE DOWN SIDE FOR THE INDUSTRY IS THAT WITH EVERYONE AND HER SISTER DOING THE SAME THING SOME OF THE NEW LINES AREN'T SELLING AS WELL AS EXPECTED MORE UNSETTLING IS THAT THE SMALL AND OFTEN MINORITYOWNED COSMETICS COMPANIES THAT HAVE LONG CATERED TO BLACKS ARE IN DANGER OF BEING SQUEEZED OUT OF THE MARKET THERE'S GOING TO BE A TERRIFIC SHAKEOUT IN THE NEXT 12 TO 18 MONTHS FORECASTS LAFAYETTE JONES PRESIDENT OF SEGMENTED MARKETING SERVICES INC A MARKETRESEARCH CONCERN THAT SPECIALIZES IN ETHNIC MARKETING IT'S JUST A SIMPLE MATTER OF HOW MUCH PRODUCT CAN BE CONSUMED THE JOSTLING BEGAN IN EARNEST IN 1991 WHEN MAYBELLINE INC'S SUCCESSFUL LAUNCH OF SHADES OF YOU SENT COMPETITORS SCRAMBLING TO CATCHUP REVLON TRUMPETED ITS AMBITIOUS COLORSTYLE LINE AND ITS DARKER TONES OF ALMAY LINE EXTENSION NOT TO BE LEFT OUT PROCTER & GAMBLE CO SPUN OUT 72 NEW COVER GIRL MAKEUP SHADES FOR DARKER COMPLEXIONS LAST MONTH EVEN AVON PRODUCTS INC WHOSE PRODUCTS HAVE LONG BEEN POPULAR WITH AFRICANAMERICAN CONSUMERS TROTTED OUT A TONES OF BEAUTY LINE LAST YEAR TO RETAIN ITS FAITHFUL FOLLOWING OLD OR NEW THE LINES FREQUENTLY FEATURE SHADES THAT MIGHT BE ASSOCIATED WITH BLACK CULTURE AS A NOTABLE EXAMPLE FLORI ROBERTS A DEPARTMENTSTORE LINE RECENTLY ACQUIRED BY IVAX CORP RECENTLY UNVEILED A COLLECTION INCLUDING AFRICAN RUBY BLUSH AND ASHANTI ORANGE LIPSTICK REVLON'S COLORSTYLE LINE HAS SUCH OFFERINGS AS PORT AU PURPLE LIPSTICK AND MONTEGO MAROON NAIL POLISH ACCORDING TO REVLON THE OVERALL 4 BILLION COSMETICS MARKET MANAGED ONLY A 4 GROWTH LAST YEAR BUT SALES OF COSMETICS FOR BLACKS INCREASED NEARLY 15 TO 80 MILLION IN 1992 AND ARE PROJECTED TO JUMP ANOTHER 22 IN 1993 COSMETICS EXECUTIVES SAY STUDIES SHOW THAT AFRICANAMERICAN COSMETICS USERS SPEND UP TO THREE TIMES AS MUCH ON BEAUTY AIDS AS WHITE COSMETICS USERS AND ARE MORE LIKELY TO BE BRANDLOYAL THIS PROMPTS SOME INDUSTRY OPTIMISTS TO FORECAST THAT ANNUAL SALES OF COSMETICS FOR BLACKS COULD EVENTUALLY RANGE FROM 600 MILLION TO 1 BILLION CRITICS HOWEVER DISMISS SUCH PROJECTIONS AS OVERBLOWN HYPE THAT OVERLOOKS THE DIVERSITY OF ETHNIC BUYING HABITS WHILE SOME WOMEN ARE EAGER TO BUY MAKEUP FORMULATED ESPECIALLY FOR THEM OTHERS LIGHTERSKINNED AFRICANAMERICANS FOR EXAMPLE MAY NOT WANT TO BE SEPARATED FROM THE GENERAL MARKET CASE IN POINT ESTEE LAUDER COS' PRESCRIPTIVES BRAND WHICH USES CUSTOMBLENDED FOUNDATIONS TO APPEAL TO ALL ETHNIC BACKGROUNDS SAYS IT IS ATTRACTING 4000 NEW DARKSKINNED CUSTOMERS A MONTH THIS IS NOT A HOMOGENEOUS GROUP OF PEOPLE SAYS SUSAN SARGISSON COPUBLISHER OF THE MARKETING INTELLIGENCE REPORT WHO ESTIMATES THE POTENTIAL OF THE AFRICANAMERICAN COSMETICS MARKET CLOSER TO 100 MILLION WHEN YOU LOOK AT THE RAW NUMBERS IT LOOKS TERRIFIC BUT AS YOU PEEL AWAY THE LAYERS YOU REALIZE THIS IS A VERY SMALL MARKET ADDS ROBERT N HIATT PRESIDENT OF MAYBELLINE I THINK THE MARKET WILL GROW SOMEWHAT IN EXCESS OF THE TOTAL COSMETICS INDUSTRY BUT IT'S NOT GOING TO BE A HIGH GROWTH RATE AT THE MOMENT EVEN MAYBELLINE'S PIONEERING SHADES OF YOU LINE HAS FELT THE COMPETITIVE PINCH WHILE THE LINE'S SALES INCREASED LAST YEAR COMPARED WITH 1991 ITS SHARE OF THE MARKET IN THE SAME PERIOD FELL 11 PERCENTAGE POINT TO 343 ACCORDING TO TOWNEOLLER & ASSOCIATES A UNIT OF INFORMATION RESOURCES INC TOWNEOLLER REPORTS WORSE NEWS FOR THE SMALLER COMPANIES THAT HAVE THRIVED BY SELLING COSMETICS FOR BLACKS FOR MANY YEARS POSNER LABORATORIES INC AND J STRICKLAND & CO LONGTIME PLAYERS IN THE DRUGSTORE MARKET LOST A QUARTER OF THEIR MARKET SHARE IN 1992 ACCORDING TO TOWNEOLLER THE GREATEST MARKETSHARE GAINS WERE RECORDED BY REVLON'S COLORSTYLE AND BY BLACK RADIANCE A BUDGET LINE PRODUCED BY DISCOUNT COSMETICS KING PAVION LTD THE SMALLER PLAYERS ARE BEING HANDILY BEATEN IN PROMOTIONAL AND ADVERTISING SPENDING MAYBELLINE FOR EXAMPLE IS ABOUT TO BEGIN ITS FIRST TELEVISION CAMPAIGN AND REVLON HAS HIRED WELLKNOWN BLACK MODEL VERONICA WEBB FOR A COLORSTYLE CAMPAIGN THE GIANTS ARE ALSO PROFITING FROM TREMENDOUS ADVANTAGES IN DISTRIBUTION POWER AND SHELF SPACE IN ONE NEW YORK DISCOUNT STORE PAVION'S LOWPRICED BLACK RADIANCE ENTRY AND COVER GIRL'S AFRICANAMERICAN SHADES DOMINATED THE COSMETICS AISLES ONLY A HANDFUL OF POSNER'S PRODUCTS HOWEVER COULD BE FOUND ON A BOTTOM SHELF THE WEAKNESS OF THESE SMALLER FIRMS IS THEY DON'T HAVE THE MARKETING SUPPORT AND OFTENTIMES HAVE SUPPLY OR DISTRIBUTION PROBLEMS EXPLAINS AN EXECUTIVE AT A LARGE MIDWESTERN RETAIL CHAIN IT MAKES IT DIFFICULT FOR US TO CARRY THEIR PRODUCT POSNER DECLINED TO COMMENT BUT INDUSTRY OBSERVERS ALSO FEEL THAT THE CATEGORY'S ORIGINAL PLAYERS BECAME TOO COMPLACENT WITH THE BUSINESS AND WERE TOO SLOW TO RESPOND TO THE RAPID CHANGES IN THE MARKET JOHNSON PUBLISHING CO WHICH PUBLISHES EBONY MAGAZINE HAD BEEN MARKETING ITS UPSCALE FASHION FAIR COSMETICS LINE IN DEPARTMENT STORES FOR YEARS BEFORE LAUNCHING A DRUGSTORE LINE CALLED EBONE PRONOUNCED EHBONAY LAST YEAR LINDA JOHNSON RICE JOHNSON PUBLISHING'S PRESIDENT SAYS THE COMPANY HAD BEEN CONSIDERING A DRUGSTORE LINE FOR YEARS MAYBE WE SHOULD HAVE COME OUT WITH IT SOONER BUT WE DIDN'T SHE CONCEDES STILL JOHNSON AND OTHER BLACKOWNED COMPANIES HAVE A MAJOR ADVANTAGE OVER THEIR NEW COMPETITORS A HISTORY OF CATERING TO BLACK CONSUMERS FOR EXAMPLE WHATEVER THE MARKETING CLOUT OF P&G WITH THE GENERAL POPULATION THERE IS NO GETTING AWAY FROM THE FACT THAT ITS COVER GIRL COSMETICS HAVE LONG BEEN ASSOCIATED WITH BLUEEYED BLONDES A TREMENDOUS DISADVANTAGE IN SELLING ITS NEW SHADES FOR THE BLACK MARKET OTHERS INSIST THAT MANY AFRICANAMERICAN CONSUMERS WON'T ABANDON THEIR LOYALTIES TO SMALL MINORITYOWNED BUSINESSES PRIDE HAS A LOT TO DO WITH OUR SALES NOTES JOHNSON PUBLISHING'S MS RICE PEOPLE TELL US THEY FEEL GOOD BUYING FROM A BLACK COMPANY TO REINFORCE AN IMAGE OF UNITY THE ASSOCIATION OF AMERICAN HEALTH AND BEAUTY AIDS INSTITUTE PLANS TO START A CAMPAIGN TO INCREASE AWARENESS OF THE PROUD LADY SYMBOL A LOGO THAT SIGNALS TO CONSUMERS THAT THE MANUFACTURER IS BLACKOWNED AND OPERATED BLACK CONSUMERS ARE REALLY CONCERNED ABOUT RECYCLING THEIR DOLLARS BACK TO THEIR COMMUNITY SAYS GERI DUNCAN JONES EXECUTIVE DIRECTOR OF THE TRADE GROUP OF MINORITYOWNED BUSINESSES EXECUTIVES AT REVLON AND MAYBELLINE COUNTER THAT MANY OF THE MANAGERS WORKING ON THEIR ETHNIC LINES ARE AFRICANAMERICAN THE COMPANIES ARE ALSO ACTIVELY PROMOTING BLACK AWARDS PROGRAMS SCHOLARSHIPS AND OTHER FORMS OF CORPORATE PHILANTHROPY REVLON AND MAYBELLINE ARE SPENDING HEAVILY TO LAUNCH NEW COSMETICS LINES FOR BLACK WOMEN BUT SUCH ESTABLISHED BRANDS AS PAVION'S BLACK RADIANCE ARE FIGHTING BACK SUSAN SARGISSON IS COPUBLISHER OF MARKET VIEW A MARKETING REPORT THE PUBLICATION WAS INCORRECTLY IDENTIFIED AS THE MARKETING INTELLIGENCE REPORT IN THURSDAY'S MARKETSCAN COLUMN ABOUT THE AFRICANAMERICAN COSMETICS MARKET 9302180124 930218 CLINTON'S ECONOMIC PACKAGE THREE DECADES OF TAX CHANGE THE HISTORY OF THE INVESTMENT TAX CREDIT DATES SHOWN ARE WHEN THE ACTION BECAME EFFECTIVE 9302180123 930218 DIVIDEND NEWS MAX & ERMA'S RESTAURANTS INC MAX & ERMA'S RESTAURANTS INC COLUMBUS OHIO ANNOUNCED A 5FOR4 STOCK SPLIT PAYABLE MARCH 26 TO STOCK OF RECORD MARCH 5 THE COLOMBUS OHIO COMPANY SAID IT WANTS TO INCREASE THE NUMBER OF SHARES OUTSTANDING BOOSTING THE STOCK'S LIQUIDITY IT HAD 286 MILLION SHARES OUTSTANDING IN THE YEAR ENDED OCT 25 IN A STATEMENT TODD BARNUM CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE EXPECTS TO CONTINUE THE COMPANY'S RECORD FINANCIAL PERFORMANCE IN FISCAL 1992 WITH THE FISCAL FIRSTQUARTER RESULTS DUE OUT NEXT MONTH IN 1992 THE COMPANY EARNED 108 MILLION OR 38 CENTS A SHARE COMPARED WITH 429000 OR 15 CENTS A SHARE A YEAR EARLIER