DUSSELDORF GERMANY EUROPEAN STEELMAKERS WARNED THAT THE US DECISION THIS WEEK TO LEVY DUMPING PENALTIES ON FOREIGN STEEL MAY HAVE AN INDIRECT IMPACT ON THE EUROPEAN STEEL MARKET ONE FAR MORE DAMAGING THAN THE DIRECT ENDANGERING OF SOME 1 BILLION OF EXPORTS CERTAINLY THE LOSS OF THAT REVENUE WILL BRUISE EUROPEAN STEELMAKERS ALREADY HURT BY LOW PRICES AND WEAK DEMAND BUT THE EFFECT OF SOME SIX MILLION TONS OF STEEL LOOKING FOR AN ALTERNATIVE MARKET COULD FURTHER SNARL ATTEMPTS BY THE EUROPEAN COMMUNITY TO ADDRESS A STRUCTURAL CRISIS IN THE INDUSTRY STEEL SHUT OUT FROM THE US MARKET WILL BE REDIRECTED TO THE COMMUNITY MARKET ACCENTUATING THERE THE ALREADY CLEAR IMBALANCE BETWEEN DEMAND AND SUPPLY WORRIES EUROFER THE LOBBY GROUP REPRESENTING EUROPE'S LARGEST STEEL PRODUCERS INDEED A SUDDEN SURPLUS OF STEEL DESTINED FOR THE US WILL FURTHER UNDERMINE ATTEMPTS TO STABILIZE THE MARKET INDUSTRY PARTICIPANTS SAY COMING AT A TIME WHEN ALL EUROPEAN STEELMAKERS ARE CRYING LOUDLY FOR A PROGRAM OF STRUCTURAL REFORM TO REDUCE ABOUT 30 MILLION TONS OF OVERCAPACITY AND STOP THE FREEFALL OF PRICES BECAUSE US LEVIES HAVE BEEN DIRECTED AT STEELMAKERS AROUND THE WORLD THE IMBALANCE COULD SPREAD FURTHER AFIELD AND CREATE A TOTAL DISORDER ON THE INTERNATIONAL MARKET FOR STEEL EUROFER ADDS A EUROPEAN SOLUTION WILL BE MUCH HARDER TO REACH BECAUSE OF THE US DUTIES SAYS EKKEHARD SCHULZ CHAIRMAN OF THYSSEN AG GERMANY'S LARGEST STEELMAKER IN THE PAST THYSSEN TRIED TO PUSH THROUGH PRICE INCREASES BUT THOSE ATTEMPTS WERE FUTILE BECAUSE OF THE COMPETITION'S WILLINGNESS TO SLASH PRICES TO GAIN MARKET SHARE WITH ADDITIONAL CAPACITY SUDDENLY ON THEIR HANDS THE PSYCHOLOGICAL INCENTIVE TO CUT PRICES TO SELL OFF THE STEEL WILL BE THAT MUCH GREATER INDUSTRY ANALYSTS FEAR INDIVIDUALLY THE DEGREE TO WHICH COMPANIES ARE AFFECTED BY THE US DUMPING LEVIES DEPENDS ON THE SPECIFIC PENALTY RATE ASSIGNED TO THEM THYSSEN ONE OF THE COMPANIES TO GET OFF WITH THE LIGHTEST DUTIES RANGING BETWEEN 5 AND 11 INDICATED THAT THE DIRECT IMPACT OF THE DUTIES WOULD MAKE IT DIFFICULT TO MAINTAIN MARKET SHARE IN THE US BUT THAT THEY WOULD CONTINUE SUPPLYING CUSTOMERS THERE AS LONG AS POSSIBLE LAST YEAR THYSSEN EXPORTED 435000 TONS OF STEEL TO THE US FOR SALES VOLUME OF 390 MILLION MARKS 246 MILLION BRITISH STEEL WAS SLAPPED WITH 109 DUTIES ON PLATESTEEL EXPORTS A SPOKESMAN FOR BRITISH STEEL REFUSED TO COMMENT ON THE COMPANY'S PLANS HE NOTED HOWEVER THAT US EXPORTS ACCOUNT FOR LESS THAN 1 OF THE COMPANY'S EXPORTS AND THEREFORE AREN'T OF MAJOR SIGNIFICANCE FOR USINOR SACILOR SA OF FRANCE WHOSE IMPORTS TO THE US ARE NOW SUBJECT TO BETWEEN 37 AND 50 DUTIES THE US MARKET IS EFFECTIVELY CLOSED WHEN ANTIDUMPING DUTIES ARE ADDED IF THE DUTIES ARE PUT INTO EFFECT WE COULD NO LONGER JUSTIFY THE SMALLEST EXPORT TO THE US SAID FRANCIS MER USINOR SACILOR CHAIRMAN USINOR'S SOLLAC UNIT EXPORTS 5 OF ITS TOTAL PRODUCTION WORTH 15 BILLION FRANCS 2793 MILLION TO THE US ALTHOUGH CURRENT DUTIES ARE ONLY TEMPORARY UNTIL THE US INTERNATIONAL TRADE COMMISSION MAKES ITS FINAL DECISION COMPANIES WISHING TO EXPORT TO THE US IN THE MEANTIME MUST POST BONDS OR CASH EQUIVALENT TO THE DUMPING PENALTIES ASSESSED IF THE DUMPING COMPLAINTS ARE OVERTURNED BY THE ITC THE COMPANIES GET THEIR MONEY BACK WE ARE FORCED TO DROP OUR CLIENTS IN THE US BECAUSE WE CAN'T AFFORD TO TAKE THE RISK THAT THE ITC WILL UPHOLD THE COMPLAINTS AND KEEP THE MONEY SAYS AN USINOR SACILOR OFFICIAL MR MER EXPRESSES LIMITED OPTIMISM THAT USINOR WILL BE ABLE TO FIND ALTERNATIVE MARKETS FOR SOME OF THE STEEL THAT NORMALLY WOULD END UP IN THE US HOOGOVENS IJMUIDEN OF THE NETHERLANDS WHICH TRADITIONALLY EXPORTS ABOUT 10 OF ITS OVERALL SALES TO THE US AND WHICH HAS BEEN SLAPPED WITH PROVISIONAL LEVIES OF 23 TO 26 CITES CHINA AS A MARKET IT HOPES CAN OFFSET SOME OF THE LOSSES IN US SALES BUT JAPANESE MAKERS WHO HAVE BEEN SUBJECT TO 15 TO 27 LEVIES ARE LIKELY TO OFFER EUROPEAN MAKERS STIFF COMPETITION FOR THE CHINESE MARKET 9301290158 930129 NEW JERSEY LUGGAGE COMPANY BAGS TAKEOVER OF EASTERN GERMANY FACTORY BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL KINDELBRUECK GERMANY IF JEROME LOWENGRUB HAS HIS WAY PRESIDENT CLINTON SOON WILL OWN A NEW SET OF LUGGAGE COMMEMORATING ONE OF THE MORE UNUSUAL US INVESTMENTS IN EASTERN GERMANY THIS IS ONE WAY TO SHOW WHAT THIS PLACE CAN PRODUCE SAID THE 63YEAROLD PRESIDENT OF YORK LUGGAGE CO PATTING THE SIDE OF ONE OF THE CASES DESTINED FOR WASHINGTON NEW JERSEYBASED YORK A LARGE LUGGAGE WHOLESALER UNVEILED THE SUITCASES AT A CEREMONY MARKING ITS TAKEOVER OF A FACTORY THAT ONCE SEEMED DESTINED FOR CLOSURE THE SPRAWLING COMPLEX OF 38 BUILDINGS ON THE EDGE OF THIS QUAINT VILLAGE WAS ONCE ONE OF EUROPE'S LARGEST SUITCASE PRODUCERS BUT LIKE MANY OTHER EASTERN GERMAN CONCERNS IT COLLIDED HEADON WITH THE FREE MARKET WHAT MAKES YORK'S INVESTMENT UNUSUAL IS THE WAY IT HAPPENED MOST US COMPANIES INVESTING IN EASTERN GERMANY INCLUDING GENERAL MOTORS CORP AND COCACOLA CO OPERATE THROUGH THEIR GERMAN SUBSIDIARIES YORK IS ONE OF ONLY A HANDFUL OF COMPANIES DIRECTLY ENTERING EASTERN GERMANY TO BUY A MANUFACTURING BASE INDEED IT IS THE FIRST SUCH INVESTMENT OF ITS KIND IN THE STATE OF THURINGIA WHERE KINDELBRUECK IS LOCATED THE IDENTITY OF INVESTORS IS A SENSITIVE TOPIC AMONG US AND GERMAN OFFICIALS THE TREUHANDANSTALT THE PRIVATIZATION AGENCY SELLING OFF EASTERN GERMAN BUSINESSES INITIALLY RESISTED COUNTING INVESTMENTS BY GERMAN SUBSIDIARIES OF US COMPANIES AS US INVESTMENTS IF SUCH US INVESTMENTS ARE OMITTED THE US PLUNKS NEAR THE BOTTOM OF THE LIST THIS LONG IRKED US OFFICIALS WHO HAVE PRESSED FOR A DIFFERENT FORM OF ACCOUNTING THE TREUHANDANSTALT NOW COUNTS MOST BUT NOT ALL SUBSIDIARIES IN ITS TALLIES THE RESULT IS THAT THE US COMES IN SECOND BEHIND FRANCE IN TOTAL INVESTMENT VOLUME IN EASTERN GERMANY 28 BILLION MARKS 18 BILLION FOR THE US VS 55 BILLION MARKS FROM FRANCE TO DATE 33 US INVESTORS HAVE MADE 57 ACQUISITIONS IN EASTERN GERMANY FOR YORK THE TRIP TO KINDELBRUECK WAS AN ODYSSEY THE FACTORY WAS HARDLY A GEM UNDER THE COMMUNISTS BUT IT PRODUCED HUGE QUANTITIES AND MORE IMPORTANT ITS PRODUCTS COULD BE EXPORTED TO THE WEST FOR BADLY NEEDED HARD CURRENCY IN 1989 THE COMPANY HAD NEARLY 700 WORKERS AND TURNED OUT 15 MILLION PIECES OF FRUMPY BUT STURDY LUGGAGE AFTER SHEDDING ALL BUT 75 WORKERS THE PLANT WILL THIS YEAR PRODUCE LESS THAN 250000 PIECES WHEN MR LOWENGRUB FIRST VISITED KINDELBRUECK IN JANUARY 1992 HE WAS HORRIFIED TO SEE THAT THE PRODUCTION LINE SNAKED THROUGH MORE THAN HALF A DOZEN BUILDINGS FORCING WORKERS TO TRUNDLE HEAPS OF HALFFINISHED GOODS AROUND ON HANDCARTS THEY HAD FIVE OR SIX PEOPLE WHO DID NOTHING BUT THAT SAYS MR LOWENGRUB ONE OF THE FIRST CHANGES HE ORDERED AT THE PLANT WAS TO CONCENTRATE THE SCALEDDOWN PRODUCTION IN A SINGLE BUILDING DESPITE SUCH PROBLEMS MR LOWENGRUB SAYS HE NEVER DOUBTED THIS WAS HIS DOORWAY TO EUROPE LIKE MANY OTHER US LUGGAGE COMPANIES YORK GAVE UP PRODUCING IN THE US MORE THAN A DECADE AGO AND SHIFTED TO BUYING FROM FACTORIES IN ASIA BUT TO ESTABLISH A FIRM BASE IN EUROPE THE COMPANY DECIDED IT NEEDED A EUROPEAN HEADQUARTERS WE WANTED TO BE MORE THAN JUST AN IMPORTER WE WANTED TO BE A EUROPEAN COMPANY SAYS MR LOWENGRUB FRANK ALFIERI YORK'S CHAIRMAN SAYS IT WAS LOGICAL TO GO TO GERMANY IF THERE'S ANY PROBLEM WITH THE OPENING UP OF OTHER EUROPEAN MARKETS SAYS MR ALFIERI WE'RE STILL IN THE MIDDLE OF THE BIGGEST ONE THE COMPANY HAS PLEDGED TO INVEST NEARLY FIVE MILLION MARKS OVER THE NEXT FIVE YEARS TO MODERNIZE THE FACTORY THE PLANT WILL SERVE AS A DISTRIBUTION CENTER FOR IMPORTED LUGGAGE AND CONTINUE AS A PRODUCTION SITE THE FACTORY'S MAIN LINE AN INEXPENSIVE RANGE OF LUGGAGE IS NOW BEING INTEGRATED WITH NEW MATERIALS AND DESIGNS FROM YORK IN THE US THE COMPANY EXPECTS TO SELL 10 MILLION MARKS OF LUGGAGE IN EUROPE THIS YEAR YORK EXECUTIVES SAY THE BIGGEST PROBLEM THEY FACED IN EASTERN GERMANY WASN'T THE FOUR DECADES OF COMMUNISM THAT SHAPED KINDELBRUECK BUT THE OFFICIALS FROM THE WEST IN CHARGE OF NEGOTIATING THE SALE THE TREUHANDANSTALT DIVISION RESPONSIBLE FOR LIQUIDATING UNSALVAGEABLE COMPANIES WANTED TO CLOSE IT AND THREW UP OBSTACLES TO THE YORK TAKEOVER IN OCTOBER MONTHS AFTER MR LOWENGRUB THOUGHT THE DEAL WAS VIRTUALLY SEALED THE LIQUIDATORS RAN ADVERTISEMENTS IN GERMAN NEWSPAPERS OFFERING TO BREAK UP KINDELBRUECK AND SELL THE REMNANTS THE TREUHAND WAS FIGHTING WITHIN ITSELF AND WE GOT CAUGHT IN THE MIDDLE SAYS MR LOWENGRUB HE FINALLY CALLED FOR HELP FROM OFFICIALS IN WASHINGTON WHO CONVEYED THE MESSAGE TO THE US EMBASSY IN BONN WE BELIEVE THE INTERVENTION BY THE US AMBASSADOR AND OTHERS IS WHAT FINALLY BROKE THE LOGJAM SAYS MR LOWENGRUB THERE WERE ALSO OTHER POINTS OF DISAGREEMENT WITH THE TREUHANDANSTALT THAT HAD TO BE RESOLVED AT FIRST FOR INSTANCE THE AGENCY WANTED YORK TO GUARANTEE ABOUT 300 JOBS FAR MORE THAN THE COMPANY CONSIDERED REALISTIC THE TREUHANDANSTALT PUTS HEAVY EMPHASIS ON SAVING JOBS ESPECIALLY IN PLACES LIKE KINDELBRUECK WHERE THE UNEMPLOYMENT RATE IS 30 9301290157 930129 FORSTMANN SAYS FINANCIAL TROUBLES NOW ARE BEHIND IT BY LA WINOKUR SPECIAL TO THE WALL STREET JOURNAL NEW YORK THESE PAST COUPLE OF YEARS HAVEN'T BEEN EASY FOR MANY TEXTILE MAKERS YET DESPITE THE TOUGH TIMES THE ONCE HIGHLY LEVERAGED FINANCIALLY TROUBLED FORSTMANN & CO HAS MANAGED TO PULL THROUGH IN BETTER SHAPE THAN WHEN IT STARTED THAT EXECUTIVES SAY IS BECAUSE OF A TURNAROUND STRATEGY CALLING FOR CONTINUED PRODUCT DEVELOPMENT AND DIVERSIFICATION A NEW CAPITAL SPENDING PROGRAM DESIGNED TO REDUCE COSTS AND EXPAND CAPACITY AND GLOBALIZATION OF THE BUSINESS ON TOP OF THAT FORSTMANN EXECUTIVES WHO JOINED THE COMPANY IN 1990 TO ASSIST WITH THE TURNAROUND SAY THEY HAVE MADE INROADS INTO CHANGING THE CORPORATE CULTURE AT FORSTMANN FROM ONE THAT IS MANUFACTURINGDRIVEN TO ONE FOCUSED MORE ON THE CUSTOMERS' NEEDS FORSTMANN'S CHIEF FINANCIAL OFFICER WILLIAM B TOWNE SAID IN AN INTERVIEW THAT FORSTMANN EXPECTS TO SEE SALES RISE ABOUT 10 FOR THE FISCAL YEAR ENDING IN OCTOBER UP FROM THE ROUGHLY 209 MILLION ACHIEVED FOR FISCAL 1992 WOOL COSTS WHICH ACCOUNT FOR ABOUT ONETHIRD OF FORSTMANN'S COSTTOGOODS ARE LIKELY TO BE FLAT OVER WHERE THEY WERE LAST YEAR HE SAYS ANALYSTS' ESTIMATES FOR FISCAL 1993 EARNINGS OF 105 TO 125 A SHARE VS PRO FORMA EARNINGS OF 61 CENTS A SHARE IN FISCAL 1992 ARE REASONABLE MR TOWNE SAYS FORSTMANN CHIEF EXECUTIVE CHRISTOPHER L SCHALLER SAYS THE FINANCIAL PROBLEMS THAT CHARACTERIZED FORSTMANN FOR MUCH OF 1990 THROUGH 1992 ARE CLEARLY BEHIND US THE NEW MANAGEMENT TEAM HE SAYS IS NOW ABLE TO FOCUS ON GROWING THE BUSINESS TO MEET THE CHALLENGES OF THE '90S EDWARD F JOHNSON DIRECTOR OF JOHNSON REDBOOK SERVICE WHICH IS PUBLISHED BY LYNCH JONES & RYAN IS BULLISH ON THE COMPANY IN A REPORT ISSUED BY JOHNSON LAST WEEK ON FORSTMANN THE ANALYST NOTES THAT WITH THE SHIFT IN EMPHASIS FROM PRODUCTION TO MARKETING DURING ITS REORGANIZATION FORSTMANN HAS ADDED 50 NEW CUSTOMERS INCLUDED AMONG THEM HE SAYS ARE LIZ CLAIBORNE INC FARAH INC HAGGAR CORP JONES APPAREL GROUP INC KELLWOOD CO LANDS' END INC LESLIE FAY COS LIMITED INC JC PENNEY INC AND THE EVAN PICONE UNIT OF CRYSTAL BRANDS INC FORSTMANN WHICH IS BASED IN NEW YORK AND OPERATES FOUR MANUFACTURING FACILITIES IN GEORGIA MAKES WOOLEN WORSTED AND OTHER FABRICS MR SCHALLER NOTES THAT SALES TO MEN'S AND WOMEN'S BRANDED APPAREL MAKERS NOW ACCOUNT FOR ABOUT 85 OF TOTAL SALES 9301290156 930129 INTERNATIONAL HIGHSPEED TRAIN PACT IS SIGNED PARIS GECALSTHOM AN ANGLOFRENCH CONCERN SAID IT SIGNED A 460 MILLION 695 MILLION CONTRACT TO BUILD HIGHSPEED TRAINS FOR A ROUTE TO LINK PARIS BRUSSELS AMSTERDAM AND COLOGNE THE COMPANY THE TRANSPORTATION AND ENERGY UNIT OF ALCATEL ALSTHOM SA AND A JOINT VENTURE WITH BRITAIN'S GENERAL ELECTRIC CO WILL BUILD 27 TRAIN SETS FOR A CONSORTIUM OF THE SOCIETE NATIONALE DES CHEMINS DE FER BELGIUM'S SNCB GERMANY'S DEUTSCHE BUNDESBAHN AND HOLLAND'S SPOORWEGEN GENERAL ELECTRIC OF BRITAIN HAS NO CONNECTION WITH THE US COMPANY OF THE SAME NAME 9301290155 930129 ECONOMY HOME MORTGAGE RATES SLIP BELOW 8 CAUSING FLURRY OF BUYING REFINANCING BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL RESIDENTIAL FIXEDRATE MORTGAGES HAVE FALLEN BELOW 8 FOR THE FIRST TIME SINCE OCTOBER FUELING SUBSTANTIAL INCREASES IN BOTH REFINANCING AND HOME BUYING ACTIVITY AS THE CRUCIAL SPRING HOUSING SEASON NEARS THE AVERAGE RATE ON A 30YEAR CONVENTIONAL MORTGAGE DROPPED TO 794 YESTERDAY FROM 809 LAST WEEK FOLLOWING ITS DOWNWARD TREND SINCE THE ELECTION AND APPROACHING THE 20YEAR LOW OF 789 REACHED LAST SEPTEMBER ACCORDING TO A PRELIMINARY SURVEY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM ONEYEAR ADJUSTABLE RATE MORTGAGES HAVE BEEN TUMBLING FOR TWO MONTHS AND AS OF YESTERDAY HAD FALLEN TO 505 FROM 515 A WEEK AGO ACCORDING TO THE SURVEY MORTGAGE LENDERS MEANWHILE REPORT HUGE GAINS IN LENDING ACTIVITY A WEEKLY INDEX OF MORTGAGE APPLICATIONS BY THE MORTGAGE BANKERS ASSOCIATION IS MORE THAN FIVE TIMES ITS NORMAL LEVEL FOR REFINANCINGS AND UP 60 FOR HOME PURCHASES IF RATES STAY WHERE THEY ARE OR EVEN GO DOWN A HAIR TRIGGER WE COULD SEE ANOTHER REFIMANIA' SAID HOWARD CULANG MANAGING DIRECTOR OF PRUDENTIAL HOME MORTGAGE CO AN EDISON NJ UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION SAID THE SURGE IN HOME PURCHASE APPLICATIONS IS A GOOD SIGN FOR THE SPRING BUYING SEASON WE ANTICIPATE SOME HEALTHY GAINS HE SAID THE RATE DECLINES CONFOUND MANY ANALYSTS WHO LAST FALL HAD PREDICTED A SURGE IN MORTGAGE RATES IN WHAT WAS EXPECTED TO BE AN INFLATIONARY FISCAL SPENDING PROGRAM BY THE NEW DEMOCRATIC ADMINISTRATION THEY ALSO PREDICTED THAT INFLATIONARY PRESSURES TO INCREASE RATES WOULD COME ABOUT AS THE ECONOMY INEVITABLY STRENGTHENED BUT TO THEIR SURPRISE PRESIDENT CLINTON UNTIL NOW HAS BACKED OFF ANY BIG STIMULUS AND EMPHASIZED CUTTING THE FEDERAL BUDGET DEFICIT IN RECENT WEEKS HIS ADMINISTRATION HAS SENT UP TRIAL BALLOONS ON SUCH DEFICITREDUCTION MEASURES AS LOWERING THE RATE OF INCREASE IN SOCIAL SECURITY BENEFITS AND ENACTING ENERGYUSE TAXES HEARTENED BY THIS FISCAL CONSERVATIVENESS INVESTORS IN THE LONGTERM GOVERNMENT BONDS THAT TEND TO SET MORTGAGE RATES BOUGHT INTO THE MARKET IN A WEEKSLONG BINGE THAT ONLY NOW IS SHOWING SIGNS OF COOLING IT'S THE CLINTON BOND RALLY SAID PAUL GETMAN AN ECONOMIST FOR CONSULTING FIRM REGIONAL FINANCIAL ASSOCIATES INC WEST CHESTER PA WITH JOB GROWTH STILL ANEMIC THERE IS ALSO NOT ENOUGH STRENGTH IN THE ECONOMY TO SUPPORT ANY SIGNIFICANT INCREASE IN INFLATION BARRING ANY UNFORESEEN ACTIONS BY THE ADMINISTRATION OR AN UNEXPECTED UPTURN IN THE ECONOMY ANALYSTS ARE BETTING MORTGAGE RATES WILL STAY AT THEIR CURRENT LOW LEVELS OR EVEN DROP MORE GIVEN THE NEARHISTORIC SPREAD OF FOUR PERCENTAGE POINTS BETWEEN SHORTTERM AND LONGTERM BOND YIELDS JONATHAN E GRAY ANALYST FOR SANFORD C BERNSTEIN & CO SAID THERE WILL BE STRONG PRESSURE ON LONG BONDS TO FALL FURTHER POSSIBLY PULLING MORTGAGE RATES BELOW 7 I GET CALLS FROM MY MOTHER THAT HER CDS ARE MATURING AND SHE'S ONLY GETTING 3 SO THERE'S TREMENDOUS INCENTIVE TO BUY LONGERTERM BONDS MR GRAY SAID 9301290154 930129 REVIEW & OUTLOOK EDITORIAL MISTY EYED THE MOST PATHETIC SIGHT OF THE WEEK HAS TO BE THE SPECTACLE OF A GERMAN COURT TRYING TO RETRIEVE ERICH HONECKER FROM HIS CHILEAN HAVEN AND BRING HIM BACK TO BERLIN WHERE HE WAS ON TRIAL FOR THE MURDERS OF THE 191 EAST GERMANS WHO DIED TRYING TO FLEE THEIR COUNTRY IN BERLIN WEDNESDAY THE JUDGES IN ONE COURT APPARENTLY THOUGHT BETTER OF THEIR COLLEAGUES' DECISION IN ANOTHER COURT TO FREE THE BUTCHER OF BERLIN ON HUMANITARIAN GROUNDS WHAT EXACTLY WE'VE BEEN WONDERING DID THE GERMANS AND CHILEANS WHO WORKED TO GIVE MR HONECKER REFUGE HAVE IN COMMON ANSWER THEY ARE ALL MISTYEYED ABOUT SOCIALISM FIRST PRIZE GOES TO THE MISTYEYED COURTS THAT SET MR HONECKER FREE DURING CLOSEDDOOR SESSIONS MR HONECKER WHO IS SUFFERING FROM LIVER CANCER SUPPOSEDLY HAS LESS THAN SIX MONTHS TO LIVE AND THE COURTS DECIDED THAT STANDING TRIAL VIOLATED HIS BASIC HUMAN RIGHTS THE COURTS' EYES APPARENTLY REMAINED DRY WHEN THEY CONSIDERED THE MILLIONS OF EAST GERMANS WHOSE MOST BASIC HUMAN RIGHTS WERE VIOLATED BY MR HONECKER PRIZE NUMBER TWO GOES TO THE MISTYEYED SOCIALISTS IN CHILE WHO ORGANIZED MR HONECKER'S REFUGE IN THE SUN MR HONECKER EARNED THESE CHILEANS' LOYALTY AFTER 1973 WHEN HE ACCEPTED SOME 4000 TO 5000 OF THEM AS THEY FLED THE GUNS OF THE PINOCHET REGIME IT WAS MR HONECKER'S GOOD FORTUNE THAT ONE OF THOSE REFUGEES HAPPENED TO BE CLODOMIRO ALMEYDA A SOCIALIST PARTY LEADER WHO LATER AS CHILEAN AMBASSADOR TO MOSCOW RETURNED MR HONECKER'S FAVOR AND HARBORED HIM IN THE EMBASSY FOR MANY MONTHS GIVING HIM SANCTUARY FROM THE GERMANS WHO DEMANDED HIS RETURN TO BERLIN CHILE'S CHRISTIAN DEMOCRATIC GOVERNMENT FOR ITS PART TOLERATES THE HONECKER WELCOME IN AN EFFORT NO DOUBT TO AVOID DOMESTIC CONFLICT WITH ITS GOVERNING PARTNERS THE SOCIALISTS THE SOCIALISTS' LOYALTY IS UNDERSTANDABLE THEIR MISTY EYES KEEP THEM FROM RECOGNIZING THAT THE EARLY PINOCHET GOVERNMENT ACTUALLY HAD MORE SIMILARITIES THAN DIFFERENCES WITH THE HONECKER REGIME ACTUALLY THE CHILEANS WERE LUCKIER THAN THE EAST GERMANS AT LEAST THEY MANAGED TO FLEE THEIR COUNTRY WHEN TROUBLE BROKE OUT MR HONECKER LOCKED HIS CITIZENS IN PRIZE NUMBER THREE GOES TO THE MISTYEYED GERMAN PRESS THAT CREATED THE ENVIRONMENT THAT DEPRIVED EASTERN GERMANS OF JUSTICE FOR THE MURDERS OF THEIR BROTHERS AND SISTERS SONS AND DAUGHTERS THAT LIBERAL PRESS IS STRONG IN WESTERN GERMANY WHERE JOURNALISTS LIKE JUDGES WERE TRAINED IN AN ERA THAT SAW GREATER VALUE IN RECONCILIATION WITH COMMUNISTS LIKE MR HONECKER THAN IN CONDEMNATION OF THEIR CRIMES THIS ATTITUDE ISN'T CONFINED TO GERMANY THOUGH HERE IN AMERICA THE NEW YORKER THIS MONTH PUBLISHED AN UNSIGNED TALK OF THE TOWN COLUMN THAT LIONIZED THE BUTCHER OF BERLIN HE IS NO COMPLAINER AND DESCRIBED WITH AFFECTION HIS LOYALTY TO THE OLD RED FRONT THE ARTICLE ALSO MOCKED THE PROSECUTOR IN THE HONECKER CASE AS A PETIT BOURGEOIS THE ANONYMOUS AUTHOR OF THE NEW YORKER PIECE WAS ONE IRENE DISCHE WIFE OF MR HONECKER'S ATTORNEY WE WONDER HOW THE MAGAZINE'S FAMOUS FACTCHECKING DEPARTMENT MISSED THAT ONE MISTY EYES 9301290153 930129 INTERNATIONAL GERMANY'S TELEKOM PLANS OFFER FRANKFURT DEUTSCHE BUNDESPOST TELEKOM THE TELECOMMUNICATIONS ARM OF GERMANY'S POSTAL AGENCY HOPES TO ISSUE ITS FIRST SHARES IN LATE 1995 OR EARLY 1996 THE CHAIRMAN OF ITS MANAGEMENT BOARD SAID THE CHAIRMAN HELMUT RICKE SAID 49 OF THE AGENCY WOULD BE PRIVATIZED LEAVING THE GOVERNMENT WITH A MAJORITY STAKE THE BONN GOVERNMENT NOW HOLDS 100 OF THE AGENCY THE VALUE OF TELEKOM CURRENTLY IS ESTIMATED AT A MINIMUM OF 60 BILLION MARKS 378 BILLION THE PRIVATIZATION WHICH IS EXPECTED TO BE DONE IN TWO EQUAL TRANCHES STILL MUST BE APPROVED BECAUSE IT INVOLVES A CHANGE IN THE GERMAN CONSTITUTION THE OPPOSITION SOCIAL DEMOCRATS ALSO MUST AGREE A DECISION IS EXPECTED BY YEAR END 9301290152 930129 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 278738 METRIC TONS IN THE WEEK ENDED SATURDAY UP 42 FROM 267404 TONS THE PREVIOUS WEEK AND UP 89 FROM 256007 TONS A YEAR AGO STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 850631 TONS A 41 INCREASE FROM 816885 TONS A YEAR EARLIER 9301290151 930129 WHO'S NEWS LANDS' END INC NAMES CEO DODGEVILLE WIS LANDS' END INC NAMED WILLIAM T END PRESIDENT TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THE MAILORDER APPAREL MERCHANT MR END 45 YEARS OLD SUCCEEDS RICHARD C ANDERSON 63 WHO THE COMPANY SAID WILL RETAIN HIS POST AS VICE CHAIRMAN AND WILL SERVE AS A CONSULTANT UNTIL 1991 MR END WAS AN OFFICIAL WITH LANDS' END RIVAL LL BEAN INC GARY C COMER REMAINS CHAIRMAN LANDS' END ALSO NAMED 43YEAROLD DAVID F DYER FORMERLY VICE CHAIRMAN OF MERCHANDISING TO THE NEWLY CREATED POST OF VICE CHAIRMAN MERCHANDISING AND SALES 9301290150 930129 BALDWIN PIANO TO BE ACQUIRED BY INVESTOR GROUP BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BALDWIN PIANO & ORGAN CO AGREED TO BE ACQUIRED FOR 62 MILLION IN CASH BY PERIDOT ASSOCIATES INC A NEW INVESTMENT GROUP BASED IN WEST PALM BEACH FLA PERIDOT WILL PAY 1825 A SHARE FOR BALDWIN'S 34 MILLION SHARES OUTSTANDING AND TAKE THE FORMER UNIT OF FAILED BALDWINUNITED CORP PRIVATE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BALDWIN SHARES CLOSED AT 1750 DOWN 50 CENTS PERIDOT WAS FORMED IN JUNE BY WILLIAM EBERLE A FORMER US TRADE REPRESENTATIVE IN THE NIXON AND FORD ADMINISTRATIONS WHO WAS ONCE CHAIRMAN OF AMERICAN STANDARD CORP AND WILLIAM A FRANK A FORMER MANAGEMENT CONSULTANT WITH ALEXANDER PROUDFOOT CO BALDWIN PIANO BASED IN CINCINNATI WAS THE PRODUCT OF A 1984 LEVERAGED BUYOUT BY MANAGEMENT OF THE UNIT OF BALDWINUNITED A CINCINNATI FINANCIAL SERVICES CONCERN THAT ENTERED BANKRUPTCYLAW PROCEEDINGS IN 1983 BALDWIN PIANO WENT PUBLIC IN 1986 THE RECESSIONARY ECONOMY HASN'T BEEN KIND TO THE PIANO INDUSTRY WITH UNIT SALES OF ACOUSTIC PIANOS PLUMMETING 35 FROM 1987 TO 1991 FOREIGN PIANO MAKERS HAVE GAINED GROUND IN THE US INCREASING THEIR MARKET SHARE TO 55 IN 1991 FROM 43 FIVE YEARS EARLIER ACCORDING TO A REPORT BY ROBERT G MOSES AN ANALYST AT MCDONALD & CO STILL BALDWIN HELPED BY THE 1988 ACQUISITION OF WURLITZER CO HAS BOOSTED ITS SHARE OF THE ACOUSTIC PIANO MARKET TO 26 FROM 19 IN 1986 SALES FOR THE FIRST NINE MONTHS OF 1992 WERE UP 5 HOWEVER BALDWIN CAME RELATIVELY LATE TO THE GROWING DIGITAL PIANO BUSINESS CEDING MARKET SHARE TO COMPETITORS SUCH AS JAPAN'S YAMAHA CORP ANALYSTS SAY NOW AGGRESSIVELY PURSUING THAT NICHE BALDWIN HAS DOUBLED ITS DIGITAL PIANO MARKET SHARE TO 6 IN 1992 FROM HALF THAT IN 1991 SAID BALDWIN CHAIRMAN RICHARD HARRISON WHO WILL STAY WITH THE COMPANY IN AN UNDETERMINED CAPACITY MR FRANK ONE OF THE TWO NEW OWNERS SAYS BALDWIN WILL BENEFIT FROM AN IMPROVING ECONOMY A GROWING NUMBER OF FAMILIES WITH SUFFICIENT INCOMES TO AFFORD PIANOS UNCHARTED MARKETS ABROAD AND ENHANCED MARKETING HE ADDED THAT BALDWIN HAS AN ELABORATE DISTRIBUTION NETWORK WITH ABOUT 1100 INDEPENDENT DEALERSHIPS AND 15 COMPANYOWNED RETAIL STORES WITH FOREIGN SALES A NEGLIGIBLE 1 BALDWIN PLANS TO BOOST SALES TO EUROPE JAPAN AND THE PACIFIC RIM TAKING A CUE FROM THE JAPANESE EDUCATIONAL SYSTEM M FRANK SAYS BALDWIN WILL ENCOURAGE AMERICAN SCHOOLS TO OFFER MORE KEYBOARD INSTRUCTION AS A WAY TO TEACH CHILDREN CONCENTRATION AND COORDINATION BALDWIN'S BALANCE SHEET IS IN GOOD SHAPE SAYS MR MOSES THE ANALYST MANAGEMENT PAID OFF 20 MILLION IN DEBT THE PAST TWO YEARS AND CUT COSTS PARTICULARLY INTEREST EXPENSE THE STOCK PRICE HAS RISEN 38 IN THE PAST FIVE MONTHS AS INVESTOR CONFIDENCE IN THE PIANO MARKET ROSE MR MOSES SAYS ADDING HE RECENTLY DOWNGRADED THE STOCK TO A HOLD WHEN THE STOCK MET HIS 18 TARGET PRICE 9301290149 930129 TWO BANK FIRMS IN BOSTON SHOW IMPROVEMENTS BANK OF BOSTON BAYBANKS REPORT BETTER RESULTS FOR THE FOURTH QUARTER BY WILLIAM M BULKELEY AND DAVID STIPP STAFF REPORTERS OF THE WALL STREET JOURNAL BOSTON TWO BOSTONBASED BANKS REPORTED GENERALLY IMPROVED RESULTS REFLECTING THE CONTINUED STRENGTHENING OF NEW ENGLAND REAL ESTATE AND THE REGION'S FINANCIAL INSTITUTIONS BANK OF BOSTON CORP SAID OPERATING RESULTS IMPROVED IN THE FOURTH QUARTER ALTHOUGH NET INCOME FELL 21 FROM THE YEAREARLIER LEVEL WHICH WAS BOLSTERED BY BIG TAX CREDITS BAYBANKS INC REPORTED SHARPLY HIGHER FOURTHQUARTER EARNINGS AND REINSTATED ITS DIVIDEND AT 20 CENTS A SHARE AFTER A TWOYEAR HIATUS BANK OF BOSTON REPORTED FOURTHQUARTER NET OF 736 MILLION OR 78 CENTS A SHARE COMPARED WITH 935 MILLION OR 120 A SHARE A YEAR EARLIER WHEN IT RECEIVED ONETIME TAX BENEFITS FROM THE STATE OF MASSACHUSETTS AND A REFUND OF FEDERAL MINIMUM TAXES TOTALING 77 MILLION IRA STEPANIAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID FAVORABLE TRENDS IN EARNINGS CREDIT QUALITY AND CAPITAL CONTINUED THIS QUARTER THE BANK HOLDING COMPANY NEW ENGLAND'S SECONDLARGEST WITH ASSETS OF 323 BILLION SAID ITS NONPERFORMING ASSETS HAVE BEEN HALVED IN THE PAST YEAR AND NONACCRUAL LOANS AT 466 MILLION ARE AT THE LOWEST LEVEL IN SIX YEARS IT SAID OTHER REAL ESTATE OWNED OR OREO WAS CUT TO 233 MILLION BY THE END OF THE FOURTH QUARTER DOWN 30 FROM THE END OF THE THIRD QUARTER AND DOWN 67 FROM THE END OF 1991 COMBINED OREO AND NONACCRUAL LOANS WERE 31 OF RELATED ASETS AT YEAR END DOWN FROM 69 A YEAR EARLIER BANK OF BOSTON TOOK A MEAGER 10 MILLION RESERVE FOR CREDIT LOSSES IN THE FOURTH QUARTER DOWN FROM 78 MILLION A YEAR EARLIER SINCE LOANLOSS RESERVES NOW TOTAL 175 OF NONACCRUAL LOANS IT GAVE US THE CONFIDENCE TO FURTHER REDUCE OUR LOANLOSS PROVISION CHARLES GIFFORD PRESIDENT SAID FOR THE FULL YEAR BANK OF BOSTON REPORTED NET INCOME OF 2631 MILLION OR 296 A SHARE AFTER A 71 MILLION TAX CREDIT THE YEAR BEFORE IT REPORTED A NET LOSS OF 266 MILLION OR 53 CENTS A SHARE AFTER A 78 MILLION GAIN ON EXTINGUISHMENT OF DEBT BAYBANKS SAID ITS FOURTHQUARTER PROFIT WAS 341 MILLION OR 197 A SHARE INCLUDING AFTERTAX SECURITIES GAINS OF 237 MILLION IN THE YEAREARLIER QUARTER THE COMPANY EARNED 65 MILLION OR 40 CENTS A SHARE INCLUDING AFTERTAX SECURITIES GAINS OF 17 MILLION DURING THE FOURTH QUARTER NONACCRUAL AND RESTRUCTURED LOANS PLUS OTHER REAL ESTATE OWNED FELL 24 TO 3883 MILLION FROM THE YEAREARLIER FIGURE BAYBANKS SAID NONPERFORMING ASSETS WERE 39 OF TOTAL ASSETS OF 991 BILLION AS OF DEC 31 THE COMPANY ADDED IN 1992 BAYBANKS EARNED 592 MILLION OR 357 A SHARE ABOUT SIX TIMES YEAREARLIER EARNINGS OF 97 MILLION OR 60 CENTS A SHARE THE COMPANY'S IMPROVED 1992 RESULTS REFLECT A HIGHER LEVEL OF SECURITIES GAINS IMPROVED NET INTEREST MARGINS HIGHER LEVELS OF FEE INCOME AND LOWER LOANLOSS PROVISIONS SAID WILLIAM CROZIER CHAIRMAN AND PRESIDENT FOR THE YEAR BAYBANKS REPORTED NET INCOME OF 592 MILLION OR 357 A SHARE UP SIXFOLD FROM 97 MILLION OR 60 CENTS A SHARE TOTAL ASSETS WERE 99 BILLION 9301290147 930129 RYDER SYSTEMS INC AGREEMENT MIAMI RYDER SYSTEM INC SAID IT AGREED TO LEASE 153 VEHICLES TO PEPSICOLA PUERTO RICO BOTTLING CO FOR ITS FLEET OF 214 VEHICLES IN ADDITION THE TRANSPORTATION SERVICES CONCERN SAID IT WILL PROVIDE MAINTENANCE FOR 61 OTHER PEPSI VEHICLES THE AGREEMENT ALSO CALLS FOR RYDER TO ASSUME THE OPERATIONS AND STAFFING OF PEPSI PUERTO RICO'S SAN JUAN MAINTENANCE SHOP ACCORDING TO RYDER 9301290146 930129 WHO'S NEWS ROCHESTER TELEPHONE CORP ROCHESTER TELEPHONE CORP ROCHESTER NY LOUIS L MASSARO 46 YEARS OLD CORPORATE VICE PRESIDENT AND PRESIDENT OF THE ROCHESTER TELEPHONE OPERATIONS WAS NAMED CORPORATE VICE PRESIDENT FINANCE AND TREASURER OF THIS TELEPHONE SERVICES COMPANY HE SUCCEEDS FRED R PESTORIUS 51 WHO WAS NAMED TO THE NEW POST OF CORPORATE VICE PRESIDENT AND PRESIDENT OF REGIONAL TELEPHONE OPERATIONS 9301290145 930129 CANADIAN GOVERNMENT BOND SALE OTTAWA THE CANADIAN GOVERNMENT WILL AUCTION WEDNESDAY 15 BILLION CANADIAN DOLLARS US118 BILLION OF 7 1/4 NONCALLABLE BONDS MATURING JUNE 1 2003 THE FEDERAL FINANCE DEPARTMENT SAID PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9301290144 930129 LOSS IS POSTED BY OCCIDENTAL PETROLEUM CORP BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES OCCIDENTAL PETROLEUM CORP REPORTED A NET LOSS OF 588 MILLION OR 194 A SHARE FOR THE FOURTH QUARTER REFLECTING A 600 MILLION CHARGE FROM ITS PLAN TO LEAVE THE COAL BUSINESS AS WELL AS CHARGES FOR ACCOUNTING CHANGES THE OIL AND CHEMICAL COMPANY HAD NET INCOME OF 6 MILLION OR TWO CENTS A SHARE A YEAR EARLIER THOSE EARNINGS INCLUDED AN EXTRAORDINARY GAIN OF 3 MILLION FROM TAX BENEFITS PARTLY OFFSET BY COSTS FOR EARLY EXTINGUISHMENT OF DEBT SALES FOR THE RECENT QUARTER DROPPED 6 TO 232 BILLION FROM 247 BILLION OCCIDENTAL SAID THE 600 MILLION NONCASH CHARGE COVERED THE WRITEDOWN OF ITS ISLAND CREEK CORP COAL OPERATIONS AND ANTICIPATED LIABILITIES THE COMPANY SAID IT IS TALKING WITH SEVERAL PARTIES INTERESTED IN THE COAL ASSETS ALTHOUGH WALL STREET ANALYSTS SAID THEY DON'T EXPECT ANY EVENTUAL TRANSACTIONS TO PRODUCE MUCH CASH FOR THE DEBTHEAVY COMPANY WE HAVE MADE NO SECRET OF THE FACT THAT OUR COAL OPERATION IS NOT ONE OF OUR CORE BUSINESSES RAY IRANI OCCIDENTAL'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE DISCONTINUED COAL OPERATIONS HAD AN OPERATING LOSS OF 22 MILLION IN 1992 OCCIDENTAL RESTATED ITS RESULTS FOR 1991 AND THE FIRST NINE MONTHS OF 1992 TO REFLECT THE COAL UNIT AS A DISCONTINUED OPERATION ITS STOCK ROSE 50 CENTS TO 1850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY FOR 1992 OCCIDENTAL REPORTED A NET LOSS OF 591 MILLION OR 197 A SHARE THE EARNINGS INCLUDED A CHARGE OF 244 MILLION FOR ACCOUNTING CHANGES IN ADDITION TO THE COALRELATED CHARGES IN 1991 THE COMPANY HAD NET INCOME OF 460 MILLION OR 152 A SHARE AFTER DISCONTINUED OPERATIONS SALES FOR 1992 FELL TO 849 BILLION FROM 95 BILLION MOREOVER OVERSEAS PRODUCTION MAY SHOW STEADY GAINS IN THE NEXT FEW YEARS THE OIL SIDE IS QUITE POWERFUL SAID PAUL TING AN ANALYST WITH OPPENHEIMER & CO WHO SAID CRUDE PRODUCTION AT OCCIDENTAL'S JOINT VENTURE IN SIBERIA SHOULD PRODUCE 20000 BARRELS A DAY SOON AND THAT NEW PRODUCTION IN YEMEN SHOULD BE OPERATING BY FALL IN THE PAST TWO YEARS OCCIDENTAL HAS SOLD OFF SEVERAL NONCORE BUSINESSES PARED ITS DEBT BY MORE THAN 3 BILLION AND CUT ITS WORLDWIDE EMPLOYMENT BY MORE THAN 50 TO FEWER THAN 24000 WORKERS 9301290143 930129 REVIEW & OUTLOOK EDITORIAL ASIDES GOLDEN BARE NO LONGER THE NAKED GUY HAS BEEN EXPELLED BY THE UNIVERSITY OF CALIFORNIA ANDREW MARTINEZ 19 INSISTED ON ATTENDING CLASSES AT BERKELEY WEARING NOTHING BUT FOOTWEAR AND A BACKPACK THE BETTER TO PROTEST REPRESSION THE QUOTED REACTION OF MR MARTINEZ I'M NOT ALLOWED TO GO TO SCHOOL WHICH SEVERELY HAMPERS SOMEBODY'S CHANCES TO SUCCEED SUCH A BRIGHT FUTURE IT WAS ALAS 9301290142 930129 WHO'S NEWS SUN SPORTSWEAR INC SUN SPORTSWEAR INC KENT WASH LARRY MOUNGER 55 YEARS OLD WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE AT THIS SPORTSWEAR MAKER HE HAS BEEN ON THE BOARD SINCE 1991 AND SUCCEEDS DAVID A SABEY AS CHAIRMAN MR SABEY RESIGNED AS CHAIRMAN BECAUSE OF OTHER BUSINESS INTERESTS BUT REMAINS A BOARD MEMBER THE POSITION OF CHIEF EXECUTIVE IS NEW JAMES H WILLIAMS HAS BEEN NAMED TO A NEW SPOT ON THE BOARD 9301290141 930129 VINTAGE PETROLEUM SELLS STOCK TULSA OKLA VINTAGE PETROLEUM INC SAID IT COMPLETED A PUBLIC OFFERING OF 39 MILLION COMMON SHARES AT 1350 APIECE THE OIL AND NATURALGAS COMPANY SAID ITS PROCEEDS ABOUT 448 MILLION WILL BE USED TO PAY DEBT VINTAGE HAS ABOUT 20 MILLION COMMON SHARES OUTSTANDING 9301290140 930129 PRIVATE AIDS FOUNDATION IS SPONSORED BY UNESCO PARIS AP AIDS RESEARCH PIONEER LUC MONTAGNIER AND UNESCO CHIEF FEDERICO MAYOR LAUNCHED A PRIVATE FOUNDATION TO ACCELERATE AIDS RESEARCH AND TREAT PATIENTS AND THEIR FAMILIES WE CAN NO LONGER DEPEND ON GOVERNMENTS AND INTERNATIONAL ORGANIZATIONS SAID MR MONTAGNIER WHO DISCOVERED THE VIRUS THAT CAUSES ACQUIRED IMMUNE DEFICIENCY SYNDROME IN 1984 THE WORLD HEALTH ORGANIZATION ESTIMATES THAT 13 MILLION PEOPLE ARE INFECTED WORLDWIDE WITH THE VIRUS THE FOUNDATION COSPONSORED BY THE UNITED NATIONS EDUCATION SCIENTIFIC AND CULTURAL ORGANIZATION WILL SET UP MEDICAL CENTERS IN EUROPE NORTH AMERICA AND AFRICA TO PUT THE RESULTS OF LAB WORK TO CLINICAL USE HE SAID THE FOUNDATION WOULD WORK CLOSELY WITH AIDS RESEARCH CENTERS IN FRANCE AND THE US AS WELL AS INTERNATIONAL ORGANIZATIONS SUCH AS THE UN DEVELOPMENT PROGRAM AND THE WHO HEALTH MINISTER BERNARD KOUCHNER ANNOUNCED THE FIRST PILOT CENTER WILL OPEN IN PARIS LATER THIS YEAR BUT WOULDN'T ELABORATE MR KOUCHNER SAID THE FOUNDATION WOULD OPEN A CENTER IN ABIDJAN IVORY COAST TO TREAT AND STUDY AFRICANS' IMMUNOLOGICAL SYSTEMS IT ALSO WILL PROVIDE SCHOLARSHIPS FOR AFRICAN CHILDREN ORPHANED BY AIDS THE FOUNDATION IN THE PLANNING STAGES FOR SEVERAL YEARS ALREADY HAS RECEIVED GRANTS OF 500000 9301290139 930129 MONEY FUND ASSETS ROSE BY 909 BILLION IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 909 BILLION TO 59951 BILLION FROM 59042 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 609 RETAIL MONEY MARKET MUTUAL FUNDS FELL 362 BILLION TO 3832 BILLION THE TRADE GROUP SAID ASSETS OF 378 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL 209 BILLION TO 30211 BILLION ASSETS OF 231 RETAIL TAXEXEMPT FUNDS FELL 153 BILLION TO 8108 BILLION ASSETS OF 276 INSTITUTIONAL MONEY MARKET FUNDS ROSE 1254 BILLION TO 21631 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 225 TAXABLE MONEY MARKET FUNDS ROSE 1304 BILLION TO 19489 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL 4921 MILLION TO 2142 BILLION 9301290138 930129 WHO'S NEWS HF AHMANSON & CO HF AHMANSON & CO IRWINDALE CALIF CHARLES R RINEHART 45 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF HOME SAVINGS OF AMERICA AND THE HF AHMANSON PARENT WAS NAMED TO THE ADDITIONAL NEWLY CREATED POSITION OF VICE CHAIRMAN AT THE SAVINGS INSTITUTION UNIT FREDRIC J FORSTER 48 PRESIDENT OF ITT FEDERAL BANK IN NEWPORT BEACH CALIF SUCCEEDS MR RINEHART AS PRESIDENT OF HOME SAVINGS AND BECOMES AN HF AHMANSON SENIOR VICE PRESIDENT 9301290137 930129 TECHNOLOGY & MEDICINE SCHERINGPLOUGH RHONEPOULENC POST STRONG NET BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL TWO MIDSIZED DRUG COMPANIES SCHERINGPLOUGH CORP AND RHONEPOULENC RORER INC POSTED HEALTHY FOURTHQUARTER EARNINGS GAINS DRIVEN BY STRONG PRODUCT GROWTH SCHERINGPLOUGH'S FOURTHQUARTER EARNINGS ROSE 13 TO 1677 MILLION OR 84 CENTS A SHARE ON A 15 RISE IN SALES TO 9944 MILLION FOR THE YEAR SCHERINGPLOUGH'S PROFIT INCREASED 12 TO 7204 MILLION OR 360 A SHARE ON A 12 SALES INCREASE TO 41 BILLION RHONEPOULENC RORER'S FOURTHQUARTER PROFIT INCREASED 36 TO 1695 MILLION OR 121 A SHARE AFTER GAINS OF 18 MILLION FROM THE SALE OF CERTAIN PRODUCTS AND A TAX ADJUSTMENT ON A 6 INCREASE IN SALES TO 118 BILLION FOR THE YEAR THE COMPANY'S EARNINGS GREW 34 TO 438 MILLION OR 310 A SHARE WHICH INCLUDED A GAIN OF 39 MILLION FROM ACCOUNTING CHANGES ASSET SALES AND A TAX ADJUSTMENT SALES FOR THE YEAR ROSE 8 TO 41 BILLION SCHERINGPLOUGH'S PHARMACEUTICAL GROWTH OVERSEAS FAR OUTPACED THE DOMESTIC MARKET INTERNATIONAL PHARMACEUTICAL SALES ROSE 31 DURING THE QUARTER WHILE DOMESTIC SALES GREW JUST 5 INTRON A THE COMPANY'S ALPHA INTERFERON POSTED ESPECIALLY STRONG SALES GAINS OF 90 TO 478 MILLION FOR THE YEAR MORE THAN 40 OF THE SALES WERE IN JAPAN WHERE THE DRUG WAS APPROVED LAST MARCH FOR THE TREATMENT OF HEPATITIS C A LIVER INFECTION US SALES ACCOUNTED FOR 15 OF TOTAL INTRON A SALES MARIOLA HAGGAR AN ANALYST AT SALOMON BROTHERS SAID THE LOPSIDED GROWTH OVERSEAS CAME FROM PRODUCTS THE COMPANY SELLS SOLELY IN FOREIGN MARKETS SALES OF CLARITIN A NONSEDATING ANTIHISTAMINE SOLD ONLY IN INTERNATIONAL MARKETS FOR EXAMPLE GREW 38 TO 139 MILLION THE COMPANY HOPES TO GET US APPROVAL TO SELL THE DRUG THIS YEAR IN THE DOMESTIC MARKET SALES OF THE COMPANY'S BIGSELLING ASTHMA DRUG PROVENTIL GREW JUST 4 TO 426 MILLION MS HAGGAR ATTRIBUTED THE SLOW GROWTH TO MEDICAL STUDIES RECOMMENDING CHANGES IN USAGE OF THE DRUG AND TO STIFFENING GENERIC COMPETITION GOING AGAINST THE TREND AMONG MOST PHARMACEUTICAL COMPANIES RHONEPOULENC RORER POSTED STRONGER GROWTH IN THE US THAN ABROAD US DRUG SALES ROSE 17 TO 1 BILLION ON AN OPERATING BASIS WHILE ITS INTERNATIONAL SALES GREW JUST 6 RHONEPOULENC RORER'S ASTHMA TREATMENT AZMACOURT GREW 48 TO 127 MILLION AND ANTICLOTTING DRUG LOVENOX GREW 33 TO OVER 100 MILLION 9301290136 930129 WHO'S NEWS RAYTHEON CO RAYTHEON CO LEXINGTON MASS TWO WERE NAMED VICE PRESIDENTS AT THIS ELECTRONICS AIRCRAFT AND APPLIANCE CONCERN JACK L GRESSINGH 47 YEARS OLD AND GENERAL MANAGER OF THE ELECTROMAGNETIC SYSTEMS DIVISION WAS GIVEN THE ADDITIONAL TITLE OF VICE PRESIDENT FRANK D UMANZIO 57 AND DIRECTOR OF HUMAN RESOURCES WAS NAMED VICE PRESIDENT OF HUMAN RESOURCES HE WILL ASSUME THE RESPONSIBILITIES HELD BY E LEONARD KANE SENIOR VICE PRESIDENT UPON HIS RETIREMENT IN MAY 9301290135 930129 ECONOMY GREENSPAN BACKS CLINTON'S PLAN TO CUT DEFICIT FED CHAIRMAN SAYS MOVE COULD PROVIDE STIMULUS FOR ECONOMIC REBOUND BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ENDORSED PRESIDENT CLINTON'S LATEST DEFICITREDUCTION GOAL AND SUGGESTED THAT A CREDIBLE PLAN TO GET THERE WOULD PROVIDE A MUCH STRONGER LIFT TO THE ECONOMY THAN ANY KIND OF SHORTTERM FISCAL STIMULUS CONVINCING THE BOND MARKETS THAT THERE WAS A SERIOUS STRATEGY FOR BRINGING DOWN THE DEFICIT MR GREENSPAN TOLD THE SENATE BUDGET COMMITTEE WOULD LIKELY REDUCE LONGTERM INTEREST RATES IN A WAY THAT WOULD CREATE A FAR GREATER STIMULUS THAN ANYTHING GOVERNMENT CAN DO DIRECTLY THERE IS NO STRONGER STIMULUS TO THIS TYPE OF ECONOMY THE TYPE WE'RE LOOKING AT RIGHT NOW THAN A FURTHER DECLINE IN LONGTERM INTEREST RATES THE FED CHAIRMAN ASSERTED ASKED WHAT WOULD CONSTITUTE A CREDIBLE DEFICITREDUCTION TARGET MR GREENSPAN EFFECTIVELY THREW HIS SUPPORT BEHIND MR CLINTON'S MOST RECENT PLEDGE TO CUT 145 BILLION FROM THE PROJECTED DEFICIT FOR FISCAL 1997 I DON'T FIND THAT THE NUMBER PRESIDENT CLINTON HAS INDICATED TO BE OFF BASE MR GREENSPAN SAID MR CLINTON'S AIDES HOWEVER ARE STILL WRANGLING OVER JUST WHERE THE DEFICIT TARGET SHOULD BE MR GREENSPAN'S COMMENTS CAME DURING A SOMETIMES CONTENTIOUS HEARING IN WHICH SEVERAL SENATORS SOUGHT ASSURANCES FROM THE FED CHAIRMAN THAT THE CENTRAL BANK WOULD PUMP MORE CREDIT INTO THE SYSTEM IF THE WHITE HOUSE AND CONGRESS ADVANCE A BLUEPRINT FOR SLASHING THE DEFICIT IF WE REALLY DO BRING DOWN THAT DEFICIT THEN THERE CAN BE SOME RELAXATION BY THE FED IS THAT CORRECT SEN PAUL SIMON D ILL BLUNTLY ASKED AT ONE POINT WALKING HIS CUSTOMARY TIGHTROPE MR GREENSPAN REPLIED THAT IF WE BEGAN TO SEE THAT CREDIT DEMANDS BECAME STRAINED AS A RESULT OF MORE AUSTERE FISCAL POLICY THAT WOULD BE A CLASSIC SIGNAL FOR A CENTRAL BANK TO MOVE IN BUT CLEARLY NOT WANTING TO LOCK THE FED INTO ANY COMMITMENTS HE STOPPED FAR SHORT OF SAYING THAT THE MERE INTRODUCTION OF A DEFICITREDUCTION PLAN WOULD AUTOMATICALLY LEAD TO A CUT IN INTEREST RATES BY THE FED IN FACT MR GREENSPAN SUGGESTED THAT ANY FISCAL DRAG FROM A DEFICITREDUCTION PLAN PROBABLY WOULDN'T OCCUR UNTIL 1995 OR LATER SO THERE IS NO NEED FOR AN IMMEDIATE RESPONSE FROM MONETARY POLICY HE SAID MR GREENSPAN WHO MET WITH MR CLINTON AND HIS TOP ECONOMIC ADVISERS AT THE WHITE HOUSE YESTERDAY MORNING BEFORE HEADING TO CAPITOL HILL URGED CONGRESS NOT TO USE FEARS ABOUT SLOWING THE ECONOMY TOO MUCH AS AN EXCUSE FOR AVOIDING DEFICIT REDUCTION THE CHANCE OF OUR OVERDOING IT IS EXTREMELY NEGLIGIBLE MR GREENSPAN SAID HE NOTED THAT THERE IS NOT A LINE IN THE BUDGET DOCUMENT WHICH DOES NOT HAVE A STRONG CONSTITUENCY BEHIND IT AND THERE IS NO WAY TO CUT ANYTHING IN THE BUDGET OR RAISE ANY TAX REVENUES WITHOUT SOMEBODY BEING EXTRAORDINARILY PERTURBED BY THAT DESPITE THE POLITICAL PRESSURES MR GREENSPAN SAID THAT FOR A DEFICITREDUCTION PLAN TO BE CREDIBLE WITH THE MARKETS IT HAS TO GO BEYOND JUST GOALS OR CAPS OR GENERAL NOTIONS TO INCLUDE STATUTES WHICH ARE VERY EXPLICIT WITH RESPECT TO EACH AND EVERY PROGRAM THAT IS BEING ADDRESSED IF A TOUGH PLAN LIKE THAT WERE FASHIONED MR GREENSPAN SAID LONGTERM INTEREST RATES COULD DROP SHARPLY AS THINGS STAND HE SAID LONGTERM RATES ARE CLEARLY WELL IN EXCESS OF WHERE THEY SHOULD BE GIVEN HOW LOW INFLATION IS AND WITH THE RIGHT DEFICITREDUCTION AGENDA IN PLACE LONGTERM RATES MIGHT WELL FALL TWO PERCENTAGE POINTS OR MORE TO LESS THAN 5 MR GREENSPAN WHOSE APPEARANCE BEFORE THE BUDGET COMMITTEE MARKED HIS SECOND CONSECUTIVE DAY OF CONGRESSIONAL TESTIMONY WAS ATTACKED BY SEVERAL LAWMAKERS FOR NOT MOVING QUICKLY ENOUGH TO LOWER INTEREST RATES DURING THE RECESSION AND THEY SAID THEY WORRIED THAT THE SAME THING COULD HAPPEN AGAIN I HAVE NO DESIRE TO EMBARK ON A NEW ROUND OF DEFICIT FIGHTING ONLY TO DISCOVER THAT THE FED IS NOT THERE TO COVER OUR RIGHT FLANK AS WE MOVE OUT SAID JAMES SASSER THE TENNESSEE DEMOCRAT WHO IS CHAIRMAN OF THE PANEL BUT OTHERS SAID THE FED WAS SIMPLY BEING MADE INTO A SCAPEGOAT WHAT WAS THE BUSH RECESSION BEFORE THE ELECTION SUDDENLY HAS BECOME THE FEDERAL RESERVE'S AFTER THE ELECTION SAID SEN CHRISTOPHER BOND R MO BACK AT THE WHITE HOUSE MEANWHILE OFFICIALS ALSO EXPRESSED SUPPORT FOR THE FED SPOKESMAN GEORGE STEPHANOPOULOS SAID PRESIDENT CLINTON DIDN'T PRESS MR GREENSPAN YESTERDAY TO CUT INTEREST RATES BECAUSE THE PRESIDENT BELIEVES THAT THE FED SHOULD MAINTAIN ITS INDEPENDENCE HE RESPECTS THEIR RIGHT TO BE INDEPENDENT 9301290134 930129 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BLACK HAWK GAMING & DEVELOPMENT CO AN INITIAL OFFERING OF 106 MILLION COMMON SHARES VIA RAF FINANCIAL CORP SOVEREIGN EQUITY MANAGEMENT CORP AND WALFORD & CO COMPRECARE INC AN INITIAL OFFERING OF 3250000 SERIES A COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO AND KIDDER PEABODY & CO FPL GROUP INC AN OFFERING OF SIX MILLION COMMON SHARES AND SIX MILLION ATTACHED PREFERRED SHARE PURCHASE RIGHTS VIA GOLDMAN SACHS & CO KOPIN CORP A SECONDARY OFFERING OF 12 MILLION COMMON SHARES VIA TUCKER ANTHONY INC AND NEEDHAM & CO MAGAL SECURITY SYSTEMS LTD AN INITIAL OFFERING OF 12 MILLION COMMON SHARES VIA OSCAR GRUSS & SON INC AND CLAL ISSUING LTD SENSORMEDICS CORP AN INITIAL OFFERING OF 17 MILLION COMMON SHARES VIA SHEARSON LEHMAN BROTHERS INC URETHANE TECHNOLOGIES INC AN OFFERING OF ONE MILLION COMMON SHARES VIA WHALE SECURITIES CO WESTVACO CORP A SHELF OFFERING OF 150 MILLION OF DEBT SECURITIES 9301290133 930129 LENNAR IS SAID TO SEEK SETTLEMENT OF HURRICANE SUITS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL LENNAR CORP IS IN SETTLEMENT TALKS WITH SOME FLORIDA RESIDENTS WHO SUED THE BUILDER AFTER THEIR HOMES WERE DAMAGED OR DESTROYED BY HURRICANE ANDREW ACCORDING TO SEVERAL OF THE PLAINTIFFS THE HOMEOWNERS SAID THEY RECEIVED LETTERS FROM THEIR LAW FIRM ROBLES & GONZALEZ DETAILING THE MIAMIBASED COMPANY'S PROPOSED SETTLEMENT OFFERS THREE OF THE HOMEOWNERS SAID THEY WERE BEING OFFERED ABOUT 6800 TO SETTLE THEIR CASES ALL SAID THEIR LETTERS WARNED THAT THE SETTLEMENT PROPOSALS WERE CONFIDENTIAL AND COULD BE WITHDRAWN IF THE HOMEOWNERS DISCLOSE THEM ONE HOMEOWNER SAID HIS LETTER SPECIFIED THAT THE AWARDS WERE NOT TO COMPENSATE FOR ACTUAL DAMAGE SINCE MANY HAD ALREADY RECEIVED INSURANCE PAYMENTS BUT FOR PAIN AND SUFFERING TWO OF THE HOMEOWNERS SAID THEIR OFFERS WERE CONTINGENT ON ACCEPTANCE BY AT LEAST 350 OTHERS ALL SAID THEIR LETTERS RECOMMENDED THAT THEY ACCEPT THE OFFERS LENNAR OFFICIALS DECLINED TO COMMENT ON THE MATTER SAYING THE COMPANY DOESN'T DISCUSS PENDING LITIGATION ERVIN GONZALEZ A HOMEOWNER ATTORNEY WITH ROBLES AND GONZALEZ MIAMI ALSO DECLINED TO COMMENT WHEN HOMEOWNERS BEGAN FILING LAWSUITS IN THE WAKE OF SEPTEMBER'S HURRICANE CHARGING THE COMPANY WITH SHODDY CONSTRUCTION LENNAR CALLED THE SUITS BASELESS IN A STATEMENT AT THE TIME CHIEF EXECUTIVE OFFICER LEONARD MILLER SAID THE COMPANY HAD ABSOLUTELY NO INTENTION OF SETTLING ANY OF THESE SUITS OUT OF COURT TO PROVIDE QUICK ATTORNEYS' FEES SOME ANALYSTS HAVE PREDICTED THAT LENNAR WOULDN'T SETTLE ANY OF THE SUITS SAYING THAT TO DO SO COULD SET A DANGEROUS INDUSTRY PRECEDENT LENNAR BUILDS THE SAME WAY EVERYBODY ELSE BUILDS SAID JAMES WILSON AN ANALYST WITH MONTGOMERY SECURITIES IN NEW YORK THE ISSUE IS THE BUILDING CODES IT'S NOT LENNAR LENNAR SHOULDN'T NEED TO SETTLE 9301290132 930129 WHO'S NEWS QUAKER STATE CORP QUAKER STATE CORP OIL CITY PA LEONARD M CARROLL 50 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF INTEGRA FINANCIAL CORP PITTSBURGH WAS NAMED A DIRECTOR OF THE MAKER OF MOTOR OILS LUBRICANTS AND OTHER PRODUCTS FOR THE AUTOMOTIVE AFTERMARKET THE APPOINTMENT IS EFFECTIVE IMMEDIATELY HE SUCCEEDS LEE R FORKER 86 WHO RESIGNED FROM THE BOARD MR FORKER A FORMER CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPANY HAD BEEN A DIRECTOR SINCE 1953 THE BOARD'S SIZE REMAINS AT 12 MEMBERS 9301290131 930129 COKE EARNINGS WERE UP 95 IN 4TH QUARTER BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO POSTED A 95 INCREASE IN FOURTHQUARTER EARNINGS BENEFITING FROM A SALES BOOST LATE IN THE PERIOD IN ITS MARKETS WORLDWIDE IN LINE WITH ANALYSTS' EXPECTATIONS NET INCOME WAS 3926 MILLION OR 30 CENTS A SHARE COMPARED WITH 3584 MILLION OR 27 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 13 TO 324 BILLION FROM 288 BILLION SALES VOLUME INCREASES WORLDWIDE WERE GENERALLY MODEST BUT COKE BOLSTERED EARNINGS BY RAISING PRICES IN SOME MAJOR MARKETS AND BY CONTAINING OPERATING EXPENSES THE BEVERAGE MAKER ALSO BENEFITED FROM LOWER PRICES FOR RAW MATERIALS INCLUDING SWEETENERS AGGRESSIVE MARKETING IN DECEMBER INCLUDING SPECIAL SANTA CLAUS PACKAGES HELPED DRIVE VOLUME GAINS IN INTERNATIONAL MARKETS WHERE OPERATING PROFIT ROSE 18 IN 1992 BUT TOTAL VOLUME OVERSEAS WHERE COKE GENERATES ABOUT 80 OF ITS EARNINGS ROSE ONLY 4 IN 1992 AND 5 DURING THE LAST QUARTER SLUGGISH SALES IN SPAIN AND GERMANY AS WELL AS AN 18 DROP IN BRAZILIAN SALES VOLUME HAMPERED COKE'S INTERNATIONAL GROWTH COKE HAS SAID IT HAS AN ANNUAL TARGET OF 8 TO 10 VOLUME GROWTH INTERNATIONALLY ON AVERAGE DESPITE MISSING THE TARGET LAST YEAR A COKE SPOKESMAN SAID THAT THE GOAL REMAINS INTACT FOR 1993 THE BRAZIL OUTLOOK IS VERY POSITIVE HE SAID THE TRENDS HAVE BEEN IMPROVING THOUGH HE DECLINED TO BE SPECIFIC FOR 1993 SOME ANALYSTS EXPECT COKE'S INTERNATIONAL VOLUME A KEY BAROMETER OF THE HEALTH OF ITS BUSINESS TO RISE 7 TO 8 COKE IS GOING TO PULL OUT ALL THE STOPS IN SOME OF ITS MAJOR MARKETS WHERE ECONOMIC GROWTH IS SLUGGISH PARTICULARLY IN EUROPE AND JAPAN SAID EMANUEL GOLDMAN A PAINEWEBBER INC ANALYST FOR THE QUARTER COKE'S VOLUME ROSE A SLIGHT 3 IN THE PACIFIC RIM AS SOME COUNTRIES WERE IN RECESSION NATURAL DISASTERS HAMPERED DISTRIBUTION IN THE PHILIPPINES DURING THE QUARTER CAUSING VOLUME TO SLIDE 7 IN JAPAN COKE'S MOST PROFITABLE COUNTRY VOLUME ROSE ONLY 6 IN THE QUARTER HAMPERED BY ECONOMIC RECESSION AND POOR WEATHER THERE COKE'S JAPANESE BUSINESS COULD GET A BOOST FROM THE EXPANSION OF ITS SOCALLED MULTIPACKS IN JAPAN THIS YEAR ANALYSTS SAY IN THE PAST COKE HAS BEEN ABLE TO BOOST VOLUME BY GETTING SHOPPERS TO BUY LARGER AND LARGER QUANTITIES OF ITS BEVERAGES MARKETED IN SIXPACKS AND 12PACKS IN MANY INTERNATIONAL MARKETS COKE AND OTHER SOFT DRINKS ARE STILL BOUGHT ONE AT A TIME AND AS COKE'S JAPANESE BUSINESS IS HEAVILY WEIGHTED TOWARD VENDING MACHINES CONSUMERS AREN'T VERY ACCUSTOMED TO BUYING MORE THAN ONE CAN REFERRING TO THE MULTIPACKS IN JAPAN DAVID GOLDMAN OF OPPENHEIMER & CO SAID I THINK IT'S UNIQUE ENOUGH IN CONCEPT THAT IT COULD HAVE DRAMATIC LONGTERM RESULTS IN THE US COKE'S FOURTHQUARTER CASE SALES ROSE A SOLID 4 THE REAL STRENGTH CAME FROM AN 11 VOLUME JUMP ON THE FOUNTAIN SIDE ENTAILING SALES TO RESTAURANTS AND CONVENIENCE STORES FOR ALL OF 1992 COCACOLA'S NET INCOME ROSE 29 TO 166 BILLION OR 126 A SHARE FROM 162 BILLION OR 121 A SHARE A YEAR EARLIER THE 1992 RESULTS INCLUDE THE EFFECTS OF ONETIME MANDATED CHARGES FOR DEFERRED TAXES AND RETIREE BENEFITS THOSE ADJUSTMENTS RESULTED IN CHARGES OF 17 CENTS A SHARE IN 1992 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE COKE'S STOCK FELL 25 CENTS TO 4125 9301290130 930129 WHO'S NEWS CATALINA MARKETING CORP CATALINA MARKETING CORP ANAHEIM CALIF FREDERICK W BEINECKE AND MICHAEL B WILSON WERE ELECTED DIRECTORS OF THIS ELECTRONIC MARKETING SERVICES CONCERN INCREASING THE BOARD TO 10 MR BEINECKE 49 YEARS OLD IS PRESIDENT OF ANTAEUS ENTERPRISES INC MR WILSON 55 RECENTLY RETIRED AS VICE PRESIDENTSALES AND MARKETING CONSUMER AND COMMERCIAL PAPER PRODUCTS FOR GEORGIAPACIFIC CORP 9301290129 930129 INDUSTRY FOCUS JET ENGINE MAKERS EXPLORE NEW WAYS OF DOING BUSINESS MAJOR PLAYERS HINT AT TEAMING UP TO SURVIVE AIRCRAFT INDUSTRY RECESSION BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL JET ENGINE MAKERS ARE TALKING LESS THESE DAYS ABOUT THEIR ENGINEERING AND TECHNICAL PROWESS AND MORE ABOUT THE EXTRAORDINARY STEPS THEY MAY HAVE TO TAKE TO SURVIVE THE RECESSION IN THE AIRCRAFT INDUSTRY AFTER WATCHING INDUSTRY ORDERS PLUNGE NEARLY 50 OVER THE PAST TWO YEARS EXECUTIVES AT THE TWO LEADING COMPETITORS UNITED TECHNOLOGIES CORP AND GENERAL ELECTRIC CO SAY JOB CUTS AND PRODUCTIVITY IMPROVEMENT PROGRAMS AREN'T SUFFICIENT TO PULL THE INDUSTRY OUT OF ITS DIVE THE EXECUTIVES AREN'T SAYING EXACTLY WHAT THEY'LL DO BUT THEY ARE BEGINNING TO HINT STRONGLY THAT THEY WOULD LIKE TO START TEAMING UP WITH EACH OTHER PROBABLY THROUGH MORE EXTENSIVE JOINT RESEARCH AND DEVELOPMENT PROJECTS SUCH VAGUE PRONOUNCEMENTS MAY OF COURSE BE AN ATTEMPT BY THE ENGINE MAKERS TO TEST HOW FAR THE CLINTON ADMINISTRATION WILL ALLOW THEM TO BEND ANTITRUST RULES BUT THE STATEMENTS NEVERTHELESS UNDERSCORE THE TURBULENCE IN THE 20 BILLIONAYEAR JET ENGINE MARKET WE'RE ALL UNDERGOING AN ABSOLUTE SEA CHANGE AND THAT SUGGESTS THE NORMAL WAY OF DOING BUSINESS HAS GOT TO CHANGE SAYS ROBERT F DANIELL CHAIRMAN OF UNITED TECHNOLOGIES WHICH EARLY THIS WEEK ANNOUNCED PLANS TO ELIMINATE 7000 JOBS AT ITS PRATT & WHITNEY JET ENGINE UNIT AND TO TAKE A 701 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS I WOULDN'T LEAVE ANYTHING OUT OF THE EQUATION MR DANIELL ADDS EVERYTHING SHOULD BE EXPLORED HE DECLINES TO RULE OUT THE POSSIBILITY THAT THE ENGINE MAKERS WHO FINANCE THE SALE OF THEIR ENGINES TO AIRFRAME MAKERS MIGHT ACCEPT A STAKE IN THEIR CUSTOMERS AS SETTLEMENT OF OUTSTANDING BILLS BRIAN H ROWE THE HEAD OF GENERAL ELECTRIC'S GE AIRCRAFT ENGINES THE ARCHRIVAL OF PRATT & WHITNEY AGREES THAT JOINT VENTURES ARE ATTRACTIVE WE HAVE TO LOOK AT OUR PROGRAMS AND DECIDE WHAT WE CAN DO ON OUR OWN AND WHERE WE NEED TO COOPERATE HE SAYS IN THE REST OF THE AEROSPACE INDUSTRY MAKERS OF PLANES AS WELL ARE TAKING SOME SHOCKING STEPS INCLUDING BOEING CO'S STUDY OF A POSSIBLE VENTURE WITH FOUR PARTNERS OF THE EUROPEAN AIRBUS INDUSTRIE CONSORTIUM TO BUILD A SUPERJUMBO AIRLINER THE TROUBLES IN THE INDUSTRY STEM FROM SLUMPING AIRLINE ORDERS AND DEEP CUTS IN GOVERNMENT SPENDING ON MILITARY AIRCRAFT NO ONE EXPECTS ANY OF THE BIG COMPANIES TO EXIT THE BUSINESS AN OLIGOPOLISTIC INDUSTRY DOMINATED BY GE AND UNITED TECHNOLOGIES EACH OF WHICH HAS 40 OF THE HIGH THRUST COMMERCIAL JET ENGINE MARKET AND ROLLSROYCE PLC WHICH HAS THE REST BUT I WILL NOT BE SURPRISED TO SEE A CONSOLIDATION OF THE SMALLAIRCRAFT ENGINE BUSINESS WHICH IS SMALL AND FRAGMENTED SAYS TASSOS PHILIPPAKOS AN AEROSPACE ANALYST AT MOODY'S INVESTORS SERVICE INC THAT SEGMENT INCLUDES BESIDES THE BIG THREE JET ENGINE MAKERS ALLIEDSIGNAL INC'S PROPULSION DIVISION GENERAL MOTORS CORP'S ALLISON GAS TURBINE UNIT AND TEXTRON INC ACCORDING TO ONE INDUSTRY SOURCE GE AIRCRAFT RECENTLY BRIEFLY DISCUSSED SELLING ITS SMALLENGINE BUSINESS WHICH ACCOUNTS FOR ABOUT 10 OF THE DIVISION'S 1991 REVENUE OF 79 BILLION TO ALLIEDSIGNAL GE AIRCRAFT'S MR ROWE DECLINED TO COMMENT ON THE PURPORTED TALKS WITH ALLIEDSIGNAL BUT SAID GE IS ALREADY DEVELOPING A TURBO FAN ENGINE WITH ALLIEDSIGNAL FOR A FRENCH AIRCRAFT MAKER AND COLLABORATING ON A TECHNOLOGY PROGRAM DOWN THE ROAD THERE IS A POSSIBILITY WE WILL COOPERATE WITH THEM ON OTHER PROGRAMS HE SAID ALLIANCES ARE GROWING MORE COMMON AMONG JET ENGINE MANUFACTURERS BECAUSE OF THE ENORMOUS COSTS INVOLVED IN DEVELOPING AN ENGINE AND THE NEW COMPOSITE MATERIALS THAT GO INTO IT GE AIRCRAFT FOR INSTANCE IS IN PARTNERSHIP WITH FRENCH AND ITALIAN COMPANIES TO DEVELOP A HIGHTHRUST ENGINE FOR LARGER AND LONGERRANGE COMMERCIAL PLANES THAN EXIST TODAY THE RISK AND COST OF SUCH A TECHNOLOGICAL LEAP ARE TOO GREAT TO BE BORNE BY A SINGLE COMPANY THEY SAY SUCH FOREIGN VENTURES AREN'T SUBJECT TO THE US ANTITRUST LAWS WE ARE COMMITTED IN OUR CURRENT PROGRAMS SAYS GE'S MR ROWE BUT IN THINKING AHEAD WHERE WE HAVE TO FIND REPLACEMENT ENGINES WE HAVE TO TAKE A LOOK AT WHETHER WE CAN DO IT ON OUR OWN GE AND PRATT & WHITNEY TOGETHER ARE DEVELOPING A BLUEPRINT FOR ENGINES TO POWER A SUPERSONIC CIVILIAN PLANE SIR RALPH ROBINS CHAIRMAN OF ROLLSROYCE SAYS THE TWO US RIVALS MAY GO THE SAME ROUTE ROLLSROYCE HAS FOLLOWED IN RECENT YEARS IN THE LAST FOUR YEARS THE BRITISH JET ENGINE MAKER HAS INCREASED ALLIANCES WITH BOTH US AND EUROPEAN ENGINE MAKERS WE NEVER ENJOYED THE HUGE MILITARY RESEARCH AND DEVELOPMENT SPENDING AS PRATT & WHITNEY AND GENERAL ELECTRIC SO WE HAD TO LOOK AT COLLABORATIVE PROGRAMS TO SHARE RISK AND REVENUE HE SAYS THE PRESENT INDUSTRY CONDITIONS HE SAYS ARE ALSO LIKELY TO DETER NEW ENTRIES INTO THE INDUSTRY PARTICULARLY THE JAPANESE WHO HAVE BEEN TRYING TO ENTER THE JET ENGINE BUSINESS IN RECENT YEARS PEOPLE HAVE BEEN WONDERING IF JAPAN WILL ENTER THE MARKET I DON'T THINK SO HE SAYS WITH THE INDUSTRY BECOMING SMALLER THE EMERGING PLAYERS WILL INCREASINGLY ASSOCIATE WITH THE THREE MAIN PLAYERS HE PREDICTS SIR RALPH HOWEVER ISN'T SURE WHETHER THE US JUSTICE DEPARTMENT WOULD VIEW INCREASED ALLIANCES BETWEEN THE SMALL NUMBER OF MANUFACTURERS WITH SYMPATHY IT HAS BEEN VERY STRICT IN THE PAST HE SAYS CITING AMONG OTHER EXAMPLES THE ANTITRUST AGENCY TURNING DOWN A PROPOSAL SOME YEARS AGO BY ROLLSROYCE AND PRATT & WHITNEY TO JOINTLY DEVELOP A SMALL JET ENGINE BUT UNITED TECHNOLOGIES' MR DANIELL SAYS I WOULD HOPE THE GOVERNMENT WILL SEE THE SAME KIND OF CHANGES WE SEE AND IS WILLING TO LISTEN TO OUR NEW AND INNOVATIVE WAYS WHAT THE ENGINE MAKERS WOULD LIKE THE GOVERNMENT TO SEE AND ACKNOWLEDGE IS THAT THE MILITARY MARKET WHICH INDIRECTLY FINANCED THE DEVELOPMENT OF COMMERCIAL JET ENGINES HAS PERMANENTLY SHRUNK BY 40 OR MORE MEANWHILE THE COMMERCIAL AIRCRAFT INDUSTRY IS IN THE WORST RECESSION IN HISTORY IN 1991 THE COMPANIES DELIVERED ENGINES FOR 847 AIRCRAFT A RECORD LAST YEAR THE SHIPMENT LEVEL DROPPED TO AN ESTIMATED 700 AIRCRAFT WITH MORE THAN 600 PLANES NOW SITTING IDLE MANY OF THEM IN RUSTFREE MOJAVE DESERT AIRLINES ARE CANCELING ORDERS AND STRETCHING OUT DELIVERY TIMES SAYS MR PHILIPPAKOS THE ANALYST I FEEL CONFIDENT IN SAYING THAT THE AIRCRAFT DELIVERIES WILL DECLINE TO WELL BELOW 500 BY 1994 HE SAYS ENGINE MAKERS MEANWHILE ARE GRAPPLING WITH THE SHORTTERM PROBLEM OF A SHARP DECLINE IN SPARE PARTS SALES WHICH ACCOUNT FOR A LARGE CHUNK OF THEIR PROFIT PRATT & WHITNEY'S SPARE PARTS ORDERS FOR INSTANCE DROPPED TO 95 MILLION A MONTH IN THE FOURTH QUARTER OF LAST YEAR FROM 175 MILLION A MONTH IN THE SAME PERIOD IN 1990 FACED WITH A CASH CRUNCH BECAUSE OF A SHARP DECLINE IN AIR TRAFFIC SAYS MR PHILIPPAKOS AIRLINES ARE TAKING PARTS OUT OF IDLED PLANES RATHER THAN BUYING NEW PARTS HE SAYS AIRLINES ARE ALSO DEFERRING MAINTENANCE ALTHOUGH KEEPING WITHIN THE TIME SET UNDER FEDERAL REGULATIONS AND THE AIRLINES HAVE SHORTENED THE LEAD TIME FOR ORDERING PARTS BY A THIRD FORCING THE MANUFACTURERS TO CARRY THEIR INVENTORY 9301290128 930129 WHO'S NEWS AUTOINFO INC AUTOINFO INC FAIR LAWN NJ SCOTT ZECHER 34 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT THIS COMMUNICATIONS AND COMPUTER SERVICES CONCERN MR ZECHER WHO HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SUCCEEDS MARTIN RUBIN 37 WHO RESIGNED TO PURSUE OTHER OPPORTUNITIES MR RUBIN WILL CONTINUE AS A CONSULTANT TO THE COMPANY WILLIAM I WUNDERLICH 45 WAS NAMED TO SUCCEED MR ZECHER AS CHIEF FINANCIAL OFFICER JASON BACHER 54 WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPANY 9301290127 930129 CREDIT MARKETS BOND PRICES FINISH HIGHER IN VOLATILE SESSION RECOVER FROM DOWNTURN DUE TO OIL TAX REPORT BY GENE COLTER AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR BOND TRADERS WITH THE PHILOSOPHY THAT IT'S BETTER TO BE FRANTIC THAN TO BE BORED YESTERDAY'S ROLLERCOASTER RIDE IN THE BOND MARKET WAS A THRILL BOND PRICES ROSE AS MUCH AS 3/4 POINT EARLY IN THE DAY WERE KNOCKED LOWER BY NEWS REPORTS ABOUT A POSSIBLE OILIMPORT TAX IN THE AFTERNOON AND REBOUNDED BY THE DAY'S END FOR GAINS AS BIG AS 5/8 POINT THE BENCHMARK 30YEAR TREASURY BOND FINISHED AT 105 1/32 UP 1/2 POINT FOR A YIELD OF 720 DOWN FROM 724 ON WEDNESDAY THE FIVEYEAR AND SEVENYEAR TREASURY NOTES BOTH ROSE NEARLY 5/8 POINT WITH THE FIVEYEAR NOTE AUCTIONED TUESDAY FINISHING AT 100 8/32 FOR A YIELD OF 555 DOWN SHARPLY FROM 566 AT THE AUCTION A VARIETY OF INSTITUTIONAL INVESTORS PUSHED MONEY INTO INTERMEDIATETERM ISSUES THROUGHOUT THE DAY AND BOND PRICES WERE DRAGGED UPWARD ALONG WITH THOSE SECURITIES TREASURYS POSTED SIGNIFICANT GAINS UNTIL WELL AFTER MIDDAY WHEN THE BOND'S YIELD AT ONE POINT FELL TO A 6 1/2YEAR LOW OF 719 BUT THEN BOND TRADERS GOT WORD THAT SENATE ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON WAS ABOUT TO PRESENT A BILL CALLING FOR AN IMPORT FEE ON CRUDE OIL MR JOHNSTON PROPOSED A FLOOR OF 25 ON EACH BARREL OF IMPORTED OIL AN IDEA THAT TRADERS CONSIDERED TO BE INFLATIONARY BOND INVESTORS WORRY MOST ABOUT RISING INFLATION SINCE IT CAN DESTROY MUCH OF THE VALUE OF LONGTERM FIXEDINCOME INVESTMENTS LIKE 30YEAR TREASURY BONDS BUT THE PRICE DROP ANALYSTS SAY WAS MORE EXTREME THAN WARRANTED IN RESPONSE TO A BILL THAT ISN'T LIKELY TO FIND MANY FRIENDS IN CONGRESS OUTSIDE OF THE MEMBERS WHO REPRESENT OILPRODUCING STATES IT'S NOT A VERY LIKELY SCENARIO THAT THE BILL WOULD PASS SAID CHERYL KATZ AN ECONOMIST AT LEHMAN BROTHERS FIRST OF ALL IT DIDN'T COME FROM CLINTON AND YOU'RE TALKING ABOUT PROTECTIONISM LATE IN THE DAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE CENTRAL BANK WOULD RESPOND TO ANY OBVIOUS FISCAL DRAG THAT RESULTED FROM MAJOR CUTS IN THE FEDERAL DEFICIT MR GREENSPAN'S STATEMENT SEEMED TO IMPLY THAT THE FED WOULD CONSIDER EASING SHORTTERM INTEREST RATES IF THE CLINTON ADMINISTRATION MADE A CREDIBLE EFFORT TO CUT THE DEFICIT PRICES OF SHORTTERM SECURITIES ROSE IN RESPONSE THE WHIRLWIND OF EVENTS MAY HAVE EXCITED SOME PLAYERS BUT OTHERS ADVISED STAYING CALM IN THE FACE OF THE STORM IT'S A TOTALLY TREACHEROUS MARKET SAID ALTHEA SASLOW SENIOR VICE PRESIDENT OF FIXEDINCOME INVESTMENTS AT THE BANK OF NEW YORK PEOPLE ARE TRADING RUMORS MS SASLOW SAID THAT REALLOCATING A BOND PORTFOLIO ISN'T WISE ON A DAY WHEN A HEADLINE ON PROPOSED LEGISLATION OR MORE MARKET GUESSWORK ON THE FUTURE OF FEDERAL DEBT FINANCING SWINGS PRICES PEOPLE ARE GETTING CHOPPED UP AND WHIPPED UP MS SASLOW SAID AS FAR AS WE'RE CONCERNED MORE INFORMATION IS REQUIRED THE DAY'S SKITTISHNESS WAS BEST ILLUSTRATED BY THE RAPID CHANGING OF STRATEGIES IN THE TRADING PITS AT THE CHICAGO BOARD OF TRADE DEALERS THERE BOUGHT INSTRUMENTS KNOWN AS PUT OPTIONS IN THE MORNING PLACING A BET THAT FUTURES PRICES WOULD DROP A FUTURES CONTRACT IS AN AGREEMENT TO BUY A CERTAIN AMOUNT OF A SECURITY AT A SET TIME IN THE FUTURE A PUT OPTION GIVES A BUYER THE RIGHT TO SELL A SPECIFIC CONTRACT AT A SET PRICE UNTIL A CERTAIN DATE BUT PRICES OF THE MARCH BOND FUTURES CONTRACT KEPT RISING AND THE CONTRACT HIT AN ALLTIME HIGH OF 107 1/2 CBT DEALERS THEN REVERSED THEMSELVES AND BEGAN BUYING CALL OPTIONS ON THE BOND CONTRACT A CALL ALLOWS ITS OWNER TO PURCHCASE A SPECIFIC CONTRACT AT A SET PRICE UNTIL A CERTAIN DATE THE OPPOSITE OF A PUT THE ECONOMIC DATA RELEASED YESTERDAY DIDN'T IMPRESS THE MARKET THE COMMERCE DEPARTMENT REPORTED THAT THE BROAD MEASURE OF ECONOMIC GROWTH KNOWN AS GROSS DOMESTIC PRODUCT ROSE AT A 38 ANNUAL RATE IN THE FOURTH QUARTER OF 1992 WHILE THAT'S AN IMPRESSIVE RATE OF GROWTH ECONOMISTS SAID IT CAN'T BE SUSTAINED WITHOUT IMPROVED JOB GROWTH AND PERSONAL CONSUMPTION SPENDING RATES WHICH PROVIDED MUCH OF THE STRENGTH IN THE GDP REPORT ARE ALSO EXPECTED TO TAPER OFF THUS FOURTHQUARTER GDP WILL MOST LIKELY BE REVISED DOWNWARD ECONOMISTS SAID THE FEDERAL RESERVE REPORTED THAT THE MOST WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 FELL 7 BILLION IN THE WEEK ENDED JAN 18 THE DECLINE LEFT M2 AT A NEGATIVE 15 ANNUAL GROWTH RATE FROM ITS FOURTHQUARTER BASE THE FED'S CURRENT ANNUAL TARGET IS FOR 25 TO 65 GROWTH M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 UNTIL LATE IN THE DAY THE NEWISSUANCE SECTOR OF THE CORPORATE BOND MARKET WAS RELATIVELY QUIET DESPITE A STRONG DROP IN INTEREST RATES ONLY 600 MILLION OF CORPORATE DEBT WAS PRICED BY LATE AFTERNOON AND IT SEEMED AS IF THE MARKET HAD STUBBED ITS TOE AFTER RUNNING AT A BRISK CLIP FOR WEEKS BUT LATE IN THE DAY NEWS AMERICA HOLDINGS INC A UNIT OF NEWS CORP FLOODED THE MARKET WITH 1 BILLION OF 10YEAR AND 20YEAR SENIOR NOTES THE COMPANY OWNED BY AUSTRALIAN MEDIA BARON RUPERT MURDOCH BROUGHT THE ISSUE TO MARKET THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WITH ONLY ONE MORE TRADING DAY LEFT IN JANUARY NEW CORPORATE ISSUANCE STANDS AT ROUGHLY 365 BILLION JUST SHY OF THE RECORD OF 368 BILLION SET IN JANUARY OF 1992 ACCORDING TO SECURITIES DATA CO AMONG SECONDARY ISSUES INVESTMENTGRADE BONDS DIPPED WITH TREASURYS DURING THE DAY BUT ENDED THE SESSION 1/8 TO 3/8 POINT HIGHER JUNK BONDS ENDED FLAT TO UP 1/8 POINT IN THIN TRADING THE SESSION'S FEW INVESTMENTGRADE BORROWERS INCLUDED FORD MOTOR CO'S ASSOCIATES CORP OF NORTH AMERICA WHICH PRICED 300 MILLION OF NOTES MEANWHILE NYNEX CORP'S NEW YORK TELEPHONE CO AND SCECORP'S SOUTHERN CALIFORNIA EDISON CO FLOATED NEW DEBT IN COMPETITIVE OFFERINGS THE NEWS AMERICA HOLDINGS OFFERING SURPRISED MANY IN THE CORPORATE BOND MARKET BECAUSE IT CAME JUST TWO DAYS AFTER ANOTHER 1 BILLION OFFERING BY TIME WARNER INC MET WITH WEAK DEMAND MERRILL LYNCH WAS THE LEAD UNDERWRITER ON BOTH DEALS IT APPEARED THAT THE NEWS AMERICA HOLDINGS ISSUE WAS MORE GENEROUSLY PRICED THAN THE TIME WARNER ISSUE AND MAY BE EASIER FOR UNDERWRITERS TO SELL QUICKLY THE FIRST PART OF THE OFFERING WHICH CONSISTED OF 500 MILLION OF NONCALLABLE 10YEAR NOTES WAS PRICED WITH A 8625 COUPON AT 99854 TO YIELD 8647 FOR A SPREAD OF 225 PERCENTAGE POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE SECOND PART OF THE OFFERING WHICH CONSISTED OF 500 MILLION OF NONCALLABLE 20YEAR NOTES WAS PRICED WITH A 925 COUPON AT 9924 TO YIELD 9334 FOR A SPREAD OF 213 PERCENTAGE POINTS ABOVE THE TREASURY'S 30YEAR BOND BOTH PARTS ARE RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP MEANWHILE INVESTORS APPEARED MORE RECEPTIVE TO TIME WARNER'S 1 BILLION ISSUE OF 30YEAR DEBENTURES WHEN UNDERWRITERS OFFERED THEM AT A LOWER PRICE THAN WHEN THE ISSUE WAS PRICED EARLIER THIS WEEK THE DEBENTURES WHICH WERE PRICED TUESDAY AT PAR TO YIELD 915 OR 193 PERCENTAGE POINTS ABOVE THE LONG BOND WERE SEEN OFFERED TO INVESTORS YESTERDAY AT 99 1/2 TO YIELD 920 OR 198 PERCENTAGE POINTS ABOVE TREASURYS TRADERS SAID MUNICIPAL BONDS FINISHED GENERALLY STEADY TO 1/4 POINT FIRMER AFTER A TRENDLESS SESSION THE TAXEXEMPT MARKET HASN'T HAD A CLEAR DIRECTION FOR NEARLY A MONTH AND SOME MUNI SPECIALISTS SAY THE TRENDLESS TRADING WILL PROBABLY CONTINUE FOR A WHILE LONGER IN THIN SECONDARY TRADING THE NEW JERSEY TURNPIKE AUTHORITY'S 650 SERIES C REVENUE REFUNDING BONDS OF 2016 ENDED 1/8 POINT HIGHER AT 104 1/2 TO YIELD 607 IN SLOW PRIMARY MARKET ACTIVITY A PRUDENTIAL SECURITIES INC GROUP PRICED LOUISIANA CORRECTIONAL FACILITIES CORP'S 150 MILLION OF LEASE REVENUE REFUNDING BONDS YIELDS FOR THE NONCALLABLE SECURITIES RANGE FROM 250 IN 1993 TO 565 IN 2003 THIS ISSUE IS INSURED BY FINANCIAL SECURITY ASSURANCE INC AND CARRIES TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP ISSUERS INCREASINGLY ARE INSURING SECURITIES TO ADDRESS INVESTOR CONCERNS ABOUT CREDIT QUALITY AND TO TRIM BORROWING COSTS ACCORDING TO THE PUBLIC SECURITIES ASSOCIATION THE PSA SAYS THERE WAS RECORD ISSUANCE OF NEW INSURED MUNICIPAL BONDS IN 1992 TOTALING NEARLY 80 BILLION PRICES OF MORTGAGE SECURITIES ENDED HIGHER AS PREPAYMENT STRATEGIES CONTINUED TO DOMINATE TRADING IN SECONDARY TRADING OF 75 ISSUES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 7/32 HIGHER AT 101 18/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS FINISHED 6/32 FIRMER AT 101 14/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION FINISHED 6/32 HIGHER AT 101 7/32 WITH LONGTERM INTEREST RATES UNDER 725 INVESTORS ARE LOOKING AHEAD TO THE POSSIBILITY OF A FRESH ROUND OF PREPAYMENTS BY HOMEOWNERS AMONG THE ISSUES FINDING FAVOR AMONG PLAYERS PREPARING FOR ANOTHER RISE IN PREPAYMENTS ARE DISCOUNT MORTGAGE SECURITIESBOTH COLLATERAL AND REAL ESTATE MORTGAGE INVESTMENT CONDUIT CLASSES THAT ARE PRICED BELOW PAR PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID BUT HOLDERS OF DISCOUNT ISSUES BENEFIT WHEN THEIR SECURITIES PREPAY BECAUSE THEY CAPTURE THE DIFFERENCE BETWEEN THE PRICE THEY PAID AND THE PAR PRICE RETURNED IN NEW ISSUANCES FANNIE MAE ANNOUNCED INCREASES IN TWO OUTSTANDING OFFERINGS SERIES 199314 BACKED BY FANNIE MAE 15YEAR 9 SECURITIES WAS BOOSTED TO 5001 MILLION FROM 200 MILLION AND SERIES 199316 COLLATERALIZED BY STRIPS TRUST 203 THAT IS IN TURN BACKED BY FANNIE MAE 8 ISSUES WAS RAISED TO 1 BILLION FROM 7751 MILLION 9301290126 930129 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND RUSSIAN PRESIDENT BORIS YELTSIN MENDED FENCES WITH INDIA REACHING DEALS ON DEBT REPAYMENT AND NEW FACTORIES TO MAKE SPARE PARTS FOR THE INDIAN MILITARY THE TWO COUNTRIES RESOLVED A MAJOR DISPUTE OVER HOW MUCH INDIA OWES RUSSIA FOR MILITARY AND COMMERCIAL TRADE IN THE SOVIET ERA INDIA HAD CLAIMED IT OWED RUSSIA 12 BILLION WHILE RUSSIA HAD INSISTED ON 15 BILLION THE DISPUTE STEMMED FROM THE SHARP DROP IN THE VALUE OF THE RUBLE THE TWO SIDES AGREED ON AN AMOUNT FOR THE DEBT PRINCIPAL BUT A FIGURE FOR THE SETTLEMENT WASN'T DISCLOSED MR YELTSIN ON A THREEDAY VISIT TO INDIA ALSO SAID THE TWO COUNTRIES WOULD SET UP A FACTORY IN INDIA TO MAKE MILITARY SPARE PARTS SINCE THE COLLAPSE OF THE SOVIET UNION RUSSIA HAS BEEN UNABLE TO SUPPLY ENOUGH SPARE PARTS FOR THE BILLIONS OF DOLLARS OF MILITARY EQUIPMENT THE SOVIETS SOLD TO INDIA AT BARGAIN RATES FOR DECADES INDIA WAS THE KREMLIN'S CLOSEST ALLY OUTSIDE THE SOVIET BLOC NEW DELHI BOUGHT 80 OF ITS MILITARY HARDWARE FROM THE SOVIET UNION AUSTRALIA CUT ITS FORECAST FOR ECONOMIC GROWTH FOR THE FISCAL YEAR ENDING JUNE 30 TO 25 FROM 3 INDICATING THE COUNTRY IS HAVING A HARDER TIME RECOVERING FROM RECESSION THAN ANTICIPATED A WEAKERTHANEXPECTED GLOBAL ECONOMY WAS CITED AS A MAJOR REASON FOR THE REVISED FORECAST THE LATEST IN A SERIES OF DOWNGRADINGS AS GOVERNMENT EFFORTS TO KICKSTART THE ECONOMY HAVE FAILED TO TAKE HOLD ONE SPOT OF GOOD NEWS THE GOVERNMENT ANNOUNCED THAT INFLATION FELL TO THE LOWEST LEVEL IN 30 YEARS03 FOR THE PAST 12 MONTHS GAZPROM THE RUSSIAN NATURALGAS MONOPOLY SAID DOMESTIC GAS PRICES WILL NEARLY TRIPLE BEGINNING MONDAY THE PRICE OF NATURAL GAS FOR HOME HEATING AND OTHER DOMESTIC USES WILL BE INCREASED TO 600 RUBLES 105 PER 1000 CUBIC METERS FROM 216 RUBLES THE PRICE FOR GAS FOR INDUSTRIAL CUSTOMERS WILL RISE TO 4000 RUBLES 7 PER 1000 CUBIC METERS FROM 1100 RUBLES MEANTIME TO ALLAY WESTERN EUROPEAN FEARS ABOUT THE SECURITY OF RUSSIAN GAS SUPPLIES THROUGH UKRAINE AND TO OFFER MORE GAS TO CONSUMERS IN THE WEST GAZPROM SAID IT WAS WORKING ON A SECOND PIPELINE TO CONNECT WITH WESTERN EUROPE THE EUROPEAN COMMUNITY COMMISSION HAS WELCOMED THE POSSIBILITY THAT THE CLINTON ADMINISTRATION WILL IMPOSE ENERGY AND ENVIRONMENT TAXES A US TAX COULD REMOVE AN IMPORTANT OBSTACLE PREVENTING THE EC FROM ADOPTING ITS OWN ENERGY TAXES THE EC COMMISSION HAS PROPOSED A TAX ON ALL FORMS OF ENERGY RISING FROM THE EQUIVALENT OF 3 A BARREL OF OIL THIS YEAR TO 10 A BARREL BY 2000 THE EC SAID LAST SPRING IT WOULD PROCEED WITH ITS PLANNED TAXES ONLY WHEN OTHER DEVELOPED COUNTRIES SUCH AS THE US AND JAPAN ANNOUNCE SIMILAR MEASURES WHILE JAPAN SHOWED INTEREST IN ENERGY TAXES FORMER PRESIDENT BUSH TOOK A FIRM STAND AGAINST THEM THE TREUHANDANSTALT IN AN EFFORT TO HELP EASTERN GERMAN COMPANIES FIND INTERNATIONAL BUSINESS CONTACTS HAS LAUNCHED A MATCHMAKING PROGRAM IN AN EFFORT TO ENCOURAGE SUITORS INTERESTED IN INFORMAL BUSINESS RELATIONSHIPS THE GERMAN AGENCY CHARGED WITH PRIVATIZING THE REMAINS OF EAST GERMAN INDUSTRIES HAS COMPILED A MATCHMAKING LIST AVAILABLE IN A 76PAGE CATALOG THE CATALOG LISTS ABOUT 500 COMPANIES FROM EUROPE THE US AND JAPAN INTERESTED IN DOING BUSINESS WITH EASTERN GERMAN ENTERPRISES FRANCE'S BLACK TRUFFLES ARE FLOURISHING AGAIN AFTER SEVERAL LEAN YEARS OF DROUGHT BETTER WEATHER MEANS THIS YEAR'S CROP IS LIKELY TO REACH 30 TO 40 TONS MORE THAN DOUBLE LAST YEAR'S HAUL FRESH UNWASHED BLACK TRUFFLES ARE FETCHING AROUND 100 A POUND IN THE COUNTRY'S MAIN TRUFFLEGROWING AREA LAST SEASON'S BUYERS PAID AS MUCH AS 234 A POUND FOR THE DELICACY BUT WHILE PRICES HAVE PLUNGED CONSUMERS AREN'T SEEN LOADING UP THEIR SHOPPING CARTS THE SITUATION HAS SIMPLY REVERTED TO NORMAL SAID A WHOLESALER THE EXORBITANT PRICES OF THE PAST TWO YEARS WERE CATASTROPHIC FOR THE INDUSTRY BRITAIN'S TRADE DEFICIT WIDENED SHARPLY LAST MONTH AS EXPORTS FELL AND THE POUND'S RECENT DECLINE PUSHED UP IMPORT VALUES THE COUNTRY'S MERCHANDISE TRADE GAP WIDENED TO 174 BILLION 263 BILLION IN DECEMBER FROM 141 BILLION IN NOVEMBER THE DEFICIT WAS THE LARGEST SINCE JULY 1990 WHEN IT WAS AT 190 BILLION THE DEFICIT HIT A RECORD OF 25 BILLION IN AUGUST 1989 EXPORTS EDGED DOWN TO 917 BILLION FROM 920 BILLION IN NOVEMBER WHILE IMPORTS ROSE TO 1091 BILLION FROM 1062 BILLION THE DETERIORATION WAS MORE THAN MANY ECONOMISTS HAD FORECAST AND HEIGHTENED CONCERN ABOUT WHAT WILL HAPPEN LATER THIS YEAR IF STERLING REMAINS WEAK AND EUROPEAN ECONOMIES SLOW FURTHER AS EXPECTED THE RISE IN IMPORT VALUES WAS EXPECTED GIVEN THE STEEP DECLINE IN STERLING SINCE ITS DEPARTURE FROM THE EUROPEAN EXCHANGE RATE MECHANISM IN SEPTEMBER THE POUND IS CURRENTLY DOWN ABOUT 15 FROM THEN THE TRADE FIGURE BROUGHT THE TOTAL CURRENT ACCOUNT DEFICIT FOR 1992 TO 1377 BILLION FROM 1029 BILLION IN 1991 JAPAN'S WANING KIMONO INDUSTRY HIT BY CHANGING CONSUMER TASTES RECEIVED A BOOST WITH THE SETTING UP OF A FOUNDATION TO PROMOTE THE COUNTRY'S TRADITIONAL DRESS 9301290125 930129 WHO'S NEWS RUSS BERRIE & CO RUSS BERRIE & CO OAKLAND NJ BERNARD H TENENBAUM A DIRECTOR SINCE 1989 WAS NAMED VICE PRESIDENT OF CORPORATE DEVELOPMENT AT THIS SELLER OF GIFTS TO RETAIL STORES MR TENENBAUM 38 YEARS OLD WAS ALSO NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF A NEW UNNAMED DIVISION THAT WILL EXPAND THE COMPANY'S SALES TO THE MASS MERCHANDISING MARKET MR TENENBAUM IS THE FOUNDING DIRECTOR OF FAIRLEIGH DICKINSON UNIVERSITY'S GEORGE ROTHMAN INSTITUTE OF ENTREPRENEURIAL STUDIES 9301290124 930129 WHO'S NEWS DELTA AIR LINES DELTA AIR LINES ATLANTA HARRY C ALGER 54 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FOR OPERATIONS OVERSEEING AIRPORT CUSTOMER SERVICE OPERATIONS AND MAINTENANCE A NEW POSITION AT THIS AIRLINE COMPANY HE HAD BEEN SENIOR VICE PRESIDENT FOR OPERATIONS HIS RESPONSIBILITIES WILL BE ASSUMED BY WALTER E DOLL 50 WHO WILL BECOME VICE PRESIDENT OF OPERATIONS MR DOLL HAD BEEN VICE PRESIDENT OF FLIGHT CONTROL W MARTIN BRAHAM 47 WAS PROMOTED TO SENIOR VICE PRESIDENT FOR AIRPORT CUSTOMER SERVICE FROM VICE PRESIDENT SUCCEEDING TOMMY THOMPSON WHO RETIRED LAST YEAR 9301290123 930129 AUTO MAKERS SCHEDULE OVERTIME AT 16 PLANTS DETROIT THE BIG THREE AUTO MAKERS SAID THEY SCHEDULED OVERTIME AT A TOTAL OF 16 US AND CANADIAN ASSEMBLY PLANTS THIS WEEK AND NEXT WEEK GENERAL MOTORS CORP SAID IT SCHEDULED OVERTIME AT SEVEN OF ITS TRUCK ASSEMBLY PLANTS TODAY AND TOMORROW CHRYSLER CORP SAID IT SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT ITS ASSEMBLY PLANTS IN DETROIT ST LOUIS WINDSOR ONTARIO AND WARREN MICH FORD MOTOR CO SAID IT SCHEDULED OVERTIME AT ITS CAR ASSEMBLY PLANTS IN CHICAGO ATLANTA AND WIXOM MICH AND TRUCK PLANTS IN KANSAS CITY AVON LAKE OHIO AND LOUISVILLE KY ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 126038 CARS THIS WEEK UP 209 FROM 104222 BUILT IN THE YEARAGO PERIOD 9301290122 930129 WHO'S NEWS PANCHO'S MEXICAN BUFFET INC PANCHO'S MEXICAN BUFFET INC FORT WORTH TEXAS THIS OPERATOR OF BUFFETSTYLE RESTAURANTS NAMED FOUR NEW DIRECTORS INCREASING THE BOARD'S SIZE TO NINE NEW MEMBERS ARE TOMAS ORENDAIN 59YEAROLD PRESIDENT OF TS ORENDAIN ASSOCIATES INC OF DALLAS MAURICIO SANCHEZ GARCIA 61 PRESIDENT OF DISTRIBUIDORA ELECTRA INDUSTRIAL SA OF GUADALAJARA MEXICO RUDOLPH RODRIGUEZ JR 60 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RODRIGUEZ FESTIVE FOODS INC OF FORT WORTH AND ROBERT L LIST 56 A DIRECTOR OF YELLOWSTONE ENVIRONMENTAL SERVICES INC AND MERCURY AIR GROUP 9301290121 930129 WHO'S NEWS NORTHERN TELECOM LTD SAYS STERN TO RESIGN AS CEO AS OF MARCH 1 TORONTO NORTHERN TELECOM LTD SAID PAUL G STERN WILL RESIGN AS CHIEF EXECUTIVE OFFICER EFFECTIVE MARCH 1 BUT WILL REMAIN CHAIRMAN THE TELECOMMUNICATIONS COMPANY SAID DR STERN 54 YEARS OLD IS STEPPING DOWN TO ACCEPT AN APPOINTMENT AS A VISITING EXECUTIVE PROFESSOR AT THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA AND TO PURSUE OTHER OUTSIDE INTERESTS NORTHERN TELECOM 527OWNED BY BCE INC SAID DR STERN'S DEPARTURE IS PART OF AN ORDERLY TRANSITION OF POWER JEAN C MONTY 45 PRESIDENT AND CHIEF OPERATING OFFICER WILL SUCCEED DR STERN AS CHIEF EXECUTIVE OFFICER AND CONTINUE AS PRESIDENT MR MONTY FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BCE UNIT BELL CANADA JOINED NORTHERN TELECOM OCT1 MR MONTY HAD BEEN EXPECTED EVENTUALLY TO SUCCEED DR STERN BUT THE ANNOUNCEMENT CAME AMID SPECULATION THAT DR STERN MIGHT BE A CANDIDATE TO SUCCEED JOHN AKERS AS CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP A NORTHERN TELECOM SPOKESMAN SAID HE WAS UNAWARE OF DR STERN'S BUSINESS PLANS DR STERN WORKED AT IBM FROM 1968 TO 1976 HIS DEPARTURE COMES AT A TIME WHEN NORTHERN TELECOM IS PERFORMING STRONGLY I HAVE HAD A TERRIFIC FOUR YEARS WITH THE COMPANY HE SAID AS WE BEGIN 1993 THE COMPANY IS STRONGLY POSITIONED FOR THE FUTURE AND ALTHOUGH I RECOGNIZE THE WORK IS NOT COMPLETE I FEEL IT IS TIME FOR ME TO GO DR STERN ADDED 9301290120 930129 FINANCING BUSINESS HYPERMEDIA COMMUNICATIONS INC HYPERMEDIA COMMUNICATIONS INC SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 12 MILLION COMMON SHARES AT BETWEEN 450 AND 550 A SHARE TO BE SOLD BY THE COMPANY PROCEEDS ARE TO BE USED TO INCREASE THE CIRCULATION OF ITS MAGAZINE NEWMEDIA AND TO INTRODUCE NEW PRODUCTS 9301290119 930129 SPORTS WARMING UP FOR 1996 SUMMER OLYMPICS ATLANTA FINDS FIELD OF FINANCIAL HURDLES BY GLENN RUFFENACH AND DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL ATLANTA PICK A SPORTS METAPHOR TOUGH FIGHT ROUGH SLEDDING CLOSE RACE OLYMPIC ORGANIZERS HERE FACE ALL OF THEM WHILE SOME 3 1/2 YEARS STILL SEPARATE ATLANTA FROM THE 1996 SUMMER GAMES THE NEXT SEVERAL MONTHS COULD PROVE PIVOTAL IN DETERMINING JUST HOW EASY OR DIFFICULT IT WILL BE TO FINANCE THE 138 BILLION EXTRAVAGANZA CONTRACTS COVERING TWO OF THE BIGGEST CHUNKS OF MONEY NEEDED TO STAGE THE GAMES FEES FROM MAJOR CORPORATE SPONSORS AND FROM THE SALE OF TV RIGHTS WERE SUPPOSED TO BE ALL BUT WRAPPED UP THIS SPRING BUT ORGANIZERS NOW ACKNOWLEDGE THAT SPONSORSHIP SIGNINGS ARE RUNNING ABOUT SIX MONTHS BEHIND SCHEDULE AND SOME MARKETING EXECUTIVES QUESTION ATLANTA'S ABILITY TO CONTINUE TO SIGN CORPORATE BACKERS FOR THE ORIGINAL ASKING PRICE OF 40 MILLION MEANWHILE TV RIGHTS ACCORDING TO A SENIOR OFFICIAL AT THE INTERNATIONAL OLYMPIC COMMITTEE MIGHT NOT BE SOLD UNTIL FALL THE DELAYS AS WELL AS ANY REVENUE SHORTFALL COULD END UP CAUSING A CASHFLOW PROBLEM FOR ORGANIZERS AND IN THE LONG RUN THREATEN THE SLIM FINANCIAL CUSHION THAT THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES HAS LEFT ITSELF MY BEST GUESS IS THAT THEY'LL STILL END UP WITH A SURPLUS SAYS DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IN ATLANTA REFERRING TO THE 130 MILLION CURRENTLY PROJECTED TO REMAIN AT THE GAMES' CONCLUSION BUT IT'S GOING TO BE A LOT CLOSER THAN ANYONE THINKS INDEED DR RATAJCZAK ESTIMATES THAT ATLANTA'S NEED TO TAP AN EXISTING 300 MILLION LINE OF CREDIT MORE HEAVILY AND EARLIER THAN ORIGINALLY ANTICIPATED COULD TRANSLATE INTO 80 MILLION IN UNPLANNED INTEREST EXPENSES ACOG'S CHIEF EXECUTIVE BILLY PAYNE FLATLY DENIES THAT ESTIMATE AND SAYS HE FORESEES NO CASHFLOW PROBLEMS INDEED HE INSISTS THAT ACOG WILL DEFINITELY SIGN SIX TO SEVEN MORE CORPORATE SPONSORS IN THE 40 MILLION RANGE AND ADDS THAT EXPECTED REVENUE FROM CORPORATE SPONSORSHIPS MERCHANDISING AND LICENSING WILL TOTAL ABOUT 10 ABOVE ORIGINAL PROJECTIONS OF 520 MILLION MR PAYNE SAYS THAT SIGNING SPONSORS IS TAKING LONGER THAN WE THOUGHT CITING THE COMPLEXITY OF THE NEGOTIATIONS HE HAD HOPED TO HAVE 80 OF HIS 10 OR 12 PRIMARY SPONSORS OR PARTNERS AS MR PAYNE PREFERS TO CALL THEM ON BOARD BY MARCH TO DATE ONLY FOUR NATIONSBANK CORP HOME DEPOT INC SARA LEE CORP AND INTERNATIONAL BUSINESS MACHINES CORP HAVE SIGNED ON WHAT'S MORE ORGANIZERS ARE DEVELOPING A NEW LEVEL OF SPONSORSHIP IN WHICH COMPANIES COULD LINK UP WITH ATLANTA FOR 20 MILLION TO 25 MILLION MR PAYNE ESTIMATES THAT AS MANY AS SEVEN TO 10 SPONSORS MAY SIGN ON AT THE LOWER PRICE RANGE NOTING THAT THEY WILL RECEIVE MARKEDLY DIFFERENT RIGHTS PACKAGES THAN SPONSORS AT 40 MILLION FOR INSTANCE COMPANIES AT THE LOWER THRESHOLD MIGHT NOT BE ABLE TO PLACE THE OLYMPIC RINGS ON INDIVIDUAL PRODUCTS MR PAYNE CONCEDES THAT THE GAMES' EXPECTED SURPLUS IS BEING NARROWED IN PARTICULAR THE NUMEROUS SIDES DEVELOPERS SPORTS FEDERATIONS AND OTHERS INVOLVED IN THE CONSTRUCTION OF SPORTING VENUES LIKE THE PLANNED 225 MILLION OLYMPIC STADIUM HAVE BEEN TOUGHER WITH US THAN THEY NEED TO BE HE SAYS TOUGH DAYS OF COURSE ARE NOTHING NEW TO OLYMPIC CITIES LOS ANGELES HAD SOME TOUGH TIMES AND EVERYTHING TURNED OUT FINE NOTES JOHN BEVILAQUA AN EXECUTIVE AT THE 1984 SUMMER GAMES AND NOW PRESIDENT OF BEVILAQUA INTERNATIONAL A SPORTS MARKETING FIRM IN ATLANTA BUT MONTREAL HAD PROBLEMS AND THE CITY IS STILL PAYING OFF THE DEBT FROM 1976 ONE WAY ATLANTA HAD HOPED TO AVOID FALLING INTO THE RED WAS THROUGH ITS AMBITIOUS SPONSORSHIP PROGRAM BY LIMITING THE SIZE OF THE PARTY PRIMARILY TO AN ELITE GROUP OF 10 OR 12 MAJOR COMPANIES AND BY MOUNTING AN AGGRESSIVE CAMPAIGN AGAINST SOCALLED AMBUSH MARKETING BY ADVERTISERS THAT AREN'T OFFICIAL OLYMPIC SPONSORS BUT TRY TO PASS THEMSELVES OFF AS SUCH MR PAYNE HAD HOPED TO PERSUADE LEADING CORPORATIONS TO WRITE OUT CHECKS FOR 40 MILLION THAT PRICE TAG HOWEVER ALMOST TWICE WHAT MAJOR SPONSORS PAID FOR TIES TO THE BARCELONA GAMES JUST LAST SUMMER IS SCARING OFF EVEN THE BIGGEST COMPANIES SAYS LESA UKMAN EDITOR OF IEG SPONSORSHIP REPORT A CHICAGO NEWSLETTER THAT TRACKS EVENT MARKETING FOR ONE THING ATLANTA'S DOLLAR FIGURE MATCHES THE FIGURE THAT THE INTERNATIONAL OLYMPIC COMMITTEE IS CHARGING ITS OWN SPONSORS FOR WORLDWIDE RIGHTS IT'S NOT LOGICAL SHE SAYS THAT THE US WOULD BE WORTH THE SAME AS THE US PLUS THE REST OF THE WORLD AND FOR THAT KIND OF MONEY A COMPANY COULD SPONSOR EVERY STATE FAIR MARATHON JAZZ FESTIVAL AND FOURTH OF JULY CELEBRATION IN THE COUNTRY AND STILL HAVE 30 MILLION LEFT OVER MS UKMAN SAYS ATLANTA'S PROMISES OF EXCLUSIVITY TO SPONSORS MAY ALSO HAVE BEEN UNREALISTIC MANY OF THE 40ODD SPORTS FEDERATIONS IN THE U S ARE LIKELY TO RETAIN SOME TIES TO CORPORATE SPONSORS A SPOKESMAN FOR US SWIMMING IN COLORADO SPRINGS COLO FOR INSTANCE ASSURES A CALLER THAT THE TEAM IS ABOUT TO SIGN A MARKETING AGREEMENT WITH ATLANTA BUT QUICKLY ADDS THAT THE FEDERATION WILL KEEP ITS LINKS TO PHILLIPS PETROLEUM CO A MAJOR SPONSOR OF SWIMMING BUT NOT OF THE 1996 SUMMER GAMES MEANWHILE THE INTERNATIONAL OLYMPIC COMMITTEE IS HOLDING OFF NEGOTIATING US TV RIGHTS TO THE 1996 GAMES IN HOPES THAT THE ECONOMY WILL IMPROVE AND THAT ATLANTA WILL HAVE SUCCEEDED IN LINING UP MORE SPONSORS WHO COULD COMMIT TO BUYING BIG CHUNKS OF TV ADVERTISING MR PAYNE SAYS HE IS CONFIDENT THAT ATLANTA WILL EXCEED THE 549 MILLION CURRENTLY BUDGETED FOR THE SALE OF ALL TV RIGHTS BUT ESTIMATES VARY WIDELY AS TO HOW MUCH A US NETWORK MAY BE WILLING TO PAY OVER AND ABOVE THE 401 MILLION THAT NBC PAID FOR BARCELONA ACOG RECEIVES 60 OF EACH TVRIGHTS SALE NEGOTIATED BY THE IOC ATLANTA IS CERTAINLY A PLUM THERE'S NO QUESTION ABOUT IT SAYS JAMES R SPENCE A FORMER PRESIDENT OF ABC SPORTS WHO NOW HEADS SPORTS TELEVISION INTERNATIONAL A NEW YORK CONSULTING FIRM BUT ALL THREE NETWORKS HAVE POSTED LOSSES ON THEIR MOST RECENT OLYMPICS HE SAYS AND THE SPORTSADVERTISING CLIMATE HAS DETERIORATED SIGNIFICANTLY PEOPLE AREN'T GOING TO TAKE THE RISKS THEY ONCE DID SOME BROADCAST INDUSTRY OFFICIALS SAY THE 1996 SUMMER OLYMPICS WILL ALMOST CERTAINLY HAVE TO BRING IN CABLE AS AN ADDITIONAL SOURCE OF REVENUE STILL IT'S HARDLY CLEAR THAT CABLE RIGHTS WILL PRODUCE A WINDFALL SELLING RIGHTS TO TURNER BROADCASTING SYSTEM INC'S TNT NETWORK FOR THE 1992 AND 1994 WINTER GAMES GAVE CBS JUST 50 MILLION OUT OF A 543 MILLION BID TERENCE F MCGUIRK TURNER'S EXECUTIVE VICE PRESIDENT SAYS TURNER MAY SEEK PART OF THE 1996 SUMMER GAMES BUT THE BULK OF ANY BID IS GOING TO BE MADE UP BY A NETWORK PARTNER OLYMPIC ORGANIZERS MIGHT BE ABLE TO EXTRACT MORE REVENUE FROM CABLE RIGHTS IF THEY SELL THEM SEPARATELY FROM NETWORK RIGHTS BUT THEN THE CABLE WINNER AND NETWORK WINNER COULD END UP COMPETING FOR ADVERTISERS AND VIEWERS SAYS RICHARD POUND AN IOC MEMBER FROM MONTREAL AND CHIEF NEGOTIATOR FOR TV RIGHTS FOR 1996 OLYMPICS OFFICIALS ALSO HAVE MIXED EMOTIONS ABOUT PAYPERVIEW ON ONE HAND CABLETV SETS ARE LIKELY TO HAVE MANY MORE CHANNELS BY 1996 MAKING IT POSSIBLE TO CREATE NARROW SERVICES LIKE AN EQUESTRIAN CHANNEL AND A SOCCER CHANNEL ON THE OTHER HAND MR POUND SAYS PAYPERVIEW EVENTS MIGHT HAVE TO BE BE TAPEDELAYED SO AS NOT TO POACH ON THE NETWORK'S LIVE COVERAGE THAT ALONG WITH NBC'S LOSSES FROM THE BARCELONA TRIPLECAST COULD BE ENOUGH TO SCARE OFF WOULDBE PAYPERVIEW PROGRAMMERS THE EUROPEAN BROADCAST UNION'S DECISION TO PURCHASE EUROPEAN TELEVISION RIGHTS FOR A HIGHERTHANEXPECTED 250 MILLION GIVES ACOG SOME BREATHING ROOM ALSO NETWORK EXECUTIVES SAY THEY WERE IMPRESSED WITH THE QUALITY OF THE LIVE HOST FEED THAT OLYMPIC ORGANIZERS PRODUCED DURING THE 1992 SUMMER AND WINTER GAMES THE ATLANTA COMMITTEE HOPES NETWORKS WILL BID HIGHER FOR RIGHTS IF THEY KNOW THEY CAN USE THE FEED IN 1996 TO CUT THEIR OWN PRODUCTION EXPENSES 9301290117 930129 POTOMAC WATCH IMAGINE WHAT CANDIDATE CLINTON MIGHT HAVE SAID BY PAUL A GIGOT PRESIDENT CLINTON'S PUZZLING STUMBLING START BEGINS TO MAKE SENSE ONLY IF YOU IMAGINE THAT THERE WAS A SECRET CAMPAIGN SPEECH THAT HE NEVER GOT AROUND TO DELIVERING LAST YEAR THE SPEECH MUST HAVE BEEN DRAFTED LAST MAY WHEN ROSS PEROT WAS AT HIS PEAK IN THE POLLS AND THE CLINTON CAMPAIGN WAS SEARCHING FOR A DRAMATIC MESSAGE TO BREAK OUT OF THIRD PLACE AMONG BABY BOOM STAFFERS IT MIGHT HAVE BEEN CALLED THE PAUL IS DEAD SPEECH AFTER THE BEATLES' RECORD THAT COULD BE PLAYED BACKWARD EVERY CAMPAIGN POLLSTER WOULD HAVE GONE INTO CARDIAC ARREST WHILE READING IT HERE ARE SOME EXCERPTS LADIES AND GENTLEMEN I WANT TO TALK TODAY ABOUT THE FUTURE FOR 12 YEARS WE HAVE BEEN GOVERNED BY THE SOMETHINGFORNOTHING CROWD I PROMISE YOU TODAY THAT I WILL BE THE SOMETHINGFOREVERYBODY PRESIDENT NO GROUP NO CONSTITUENCY WILL GO UNREPRESENTED IN A CLINTON ADMINISTRATION I HAVE A VISION OF DIVERSITY OF A CABINET AS DIVERSE AS THE HARVARD FACULTY MY ATTORNEY GENERAL WILL BE A WOMAN WHOSE HOUSEHOLD ALONE IS A BEAUTIFUL MOSAIC TO PROVE I'M SERIOUS TODAY I PROMISE THAT MY FIRST PRIORITY AS PRESIDENT WILL BE TO LIFT THE BAN ON GAYS IN THE MILITARY AHEAD OF HEALTH CARE AHEAD OF WELFARE REFORM AHEAD EVEN OF ECONOMIC GROWTH I WILL SPEND PRECIOUS POLITICAL CAPITAL TO ACHIEVE THIS CULTURAL CHANGE THAT IS SO CRITICAL TO OUR FUTURE YES THE MASTODONS OF REACTION WILL RESIST BUT I WILL INSIST SAM NUNN AND CONGRESS WILL RESIST BUT I WILL STAND FIRM THE BLACK CHAIRMAN OF THE JOINT CHIEFS OF STAFF WILL RESIST BUT I WILL SAY THIS IS NO DIFFERENT FROM INTEGRATING BLACKS IN THE ARMED FORCES DURING THE KOREAN WAR I ALSO HAVE A VISION OF DIVERSITY FOR THE OFFICE OF THE PRESIDENCY IT CAN BE A LONELY OFFICE THAT IS WHY I PLAN TO SHARE IT WITH MY CLOSEST POLITICAL ADVISER MY PARTNER HILLARY RODHAM CLINTON IF I'M ELECTED I WILL PUT HILLARY IN CHARGE OF HEALTH CARE INDEED OF VIRTUALLY ALL DOMESTIC POLICY IN MY ADMINISTRATION HER ALLIES INCLUDING MANY FROM HER ROSE LAW FIRM IN LITTLE ROCK WILL DOMINATE THE WHITE HOUSE AND JUSTICE DEPARTMENT NOW SOME OF MY ADVISERS TELL ME THAT HILLARY SHOULD SOFTEN HER IMAGE BY DOING SUCH TRADITIONAL THINGS AS BAKING COOKIES IN A CONTEST WITH BARBARA BUSH I REJECT THAT ADVICE THAT IS NOT HILLARY THAT WOULD BE DISHONEST MY FELLOW AMERICANS WE ALSO NEED TO STOP CRITICIZING CONGRESS THE CAUSE OF WASHINGTON GRIDLOCK IS THE BUSH WHITE HOUSE NOT THE DEMOCRATIC CONGRESS THERE IS NOTHING WRONG WITH CONGRESS THAT CANNOT BE CURED BY WHAT IS RIGHT WITH CONGRESS THAT IS WHY WHEN JACK BROOKS TELLS ME TO REAUTHORIZE THE SPECIAL PROSECUTOR LAW I WILL OBLIGE THAT IS ALSO WHY I WANT TO SHARE CENTER STAGE AT OUR NEW YORK CONVENTION IN JULY WITH GEORGE MITCHELL TOM FOLEY BOB BYRD WITH CONGRESS IN MIND I ALSO PLAN TO TRANSFER THE HOUSE BUDGET COMMITTEE LOCK STOCK AND TAXTHERICH TABLES INTO MY OWN WHITE HOUSE BUDGET OFFICE SUCH ASTUTE AND DEDICATED REVENUE ENHANCERS AS LEON PANETTA WILL WARN ME WHEN I'LL NEED TO ABANDON MY PROMISE OF A LINEITEM VETO FOR THE SAKE OF GOOD RELATIONS WITH CONGRESS WHICH BRINGS ME TO THE ECONOMY AND ESPECIALLY TO THE DEFICIT CREATED BY 12 YEARS OF GREED AND REPUBLICAN MISRULE LADIES AND GENTLEMEN I HAVE DECIDED THAT PAUL TSONGAS WAS RIGHT ABOUT THE MIDDLECLASS TAX CUT IT IS PANDERING THE DEFICIT FORCES US TO CONFRONT DIFFICULT CHOICES AND I WILL MAKE THOSE CHOICES SO AS PRESIDENT I PROMISE TO RAISE TAXES ON THE MIDDLE CLASS PERHAPS WITH A GAS TAX PERHAPS AN ENERGY TAX BUT SOME KIND OF TAX THE WORD THAT I HOPE WILL BECOME THE WATCHWORD OF MY ADMINISTRATION OTHER THAN DIVERSITY OF COURSE IS SACRIFICE NOT JUST FOR THE RICH BUT FOR EVERY AMERICAN WE MUST ALSO HAVE THE COURAGE TO CHANGE TO GO BACK TO THE FUTURE IN FOREIGN POLICY I RESPECT WHAT PRESIDENT BUSH HAS ACCOMPLISHED ON HAITI ON CHINA AND EVEN ON IRAQ SPEECHWRITER'S NOTE COMPARE THIS SECTION TO SPEECH THAT AL GORE'S STAFF IS WRITING ON IRAQGATE THE PROBLEM IS THAT THESE POLICIES HAVE BEEN RUN BY COLD WAR THINKERS MY GOAL WILL BE TO RETURN THE FOREIGN POLICY OF THIS COUNTRY TO THE EXPERTS IN THE FOREIGNSERVICE ELITE MY SECRETARY OF STATE WILL BE SOMEONE LIKE WARREN CHRISTOPHER A MAN WHO CAN REASSEMBLE THE SAME ESTABLISHMENT TALENT THAT PERFORMED SO ABLY IN THE CARTER YEARS MORT HALPERIN AND THE PENTAGON PAPERS ASHTON CARTER'S OPPOSITION TO SDI JOCK COVEY AND SUBSIDIES TO IRAQ THESE ARE OLD FIGHTS FOR OLD DEAD ERAS IN THIS NEW ERA WE MUST THINK ANEW MY FELLOW AMERICANS FOR TOO LONG WE HAVE HAD A TRADE POLICY THAT VALUED CONSUMERS OVER AMERICAN PRODUCERS I PLAN TO CHANGE THAT MY ADMINISTRATION WILL BE A REVOLVING DOOR FOR BUSINESSES HARMED BY UNFAIR FOREIGN COMPETITION BECAUSE WASHINGTON IS A CITY OF INTRIGUE AND CALCULATION I WILL APPOINT PEOPLE WHO CAN HELP BIG BUSINESS CALCULATE ITS WAY THROUGH THE INTRIGUE I WILL APPOINT RON BROWN AS MY COMMERCE SECRETARY TO MAKE SURE THAT EVERY BUSINESS TRADE REQUEST IS HONORED STARTING IN MY FIRST WEEKS AS PRESIDENT WITH HIGHER TARIFFS ON SUCH INDUSTRIES OF THE FUTURE AS STEEL AND AUTOS AS A NEW DEMOCRAT I WANT TO STATE PROUDLY THAT I REPRESENT THE FORGOTTEN FORTUNE 500 ONE FOOTNOTE A CLUE TO THE SPEECH'S FATE MAY LIE IN A COMMENT SCRIBBLED IN THE MARGINS OF THE DRAFT THE COMMENT IS SIGNED WITH THE INITIALS JC PROBABLY FOR CAMPAIGN STRATEGIST JAMES CARVILLE IT READS IT'S SUICIDE STUPID 9301290116 930129 MARKETING & MEDIA PARAMOUNT TO ALTER NAME OF SIMON & SCHUSTER UNIT NEW YORK PARAMOUNT COMMUNICATIONS INC SAID IT IS CHANGING THE NAME OF ITS PUBLISHING OPERATIONS TO PARAMOUNT PUBLISHING FROM SIMON & SCHUSTER A MOVE THAT BAFFLED SOME FELLOW PUBLISHERS THE CHANGE IS DESIGNED TO GIVE ALL THE COMPANY'S DIVISIONS A COMMON IDENTITY PARAMOUNT SAID FORMERLY GULF & WESTERN THE PARENT COMPANY IN 1989 ADOPTED THE NAME OF ITS BESTKNOWN SUBSIDIARY PARAMOUNT PICTURES NOW THE FAMILIAR MOVIE LOGO OF A MOUNTAINTOP CIRCLED BY STARS WILL BE USED FOR ITS PUBLISHING OPERATIONS TOO ALTHOUGH PARAMOUNT IS THE COUNTRY'S LARGEST PUBLISHER WITH ANNUAL REVENUE OF MORE THAN 16 BILLION MOST PEOPLE KNOW IT ONLY FOR ITS SIMON & SCHUSTER CONSUMERBOOKS DIVISION A SITUATION THE PARENT WOULD LIKE TO RECTIFY CONSUMER BOOKS REPRESENT ONLY ABOUT 25 OF PARAMOUNT'S PUBLISHING SALES THE REST COMES FROM ITS EDUCATIONAL DIVISION AND ITS PROFESSIONAL AND TECHNICAL PUBLISHING PARAMOUNT STRESSED THAT FAMILIAR IMPRINTS INCLUDING SIMON & SCHUSTER AND ON TEXTBOOKS SILVER BURDETT GINN WILL CONTINUE TO APPEAR ON THE SPINES OF BOOKS 9301290115 930129 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO ANTHONY J TADDEY 46 YEARS OLD WAS NAMED DIRECTOR OF PUBLIC FINANCE AT THIS BANKING COMPANY MR TADDEY WILL JOINTLY MANAGE THE NEW MUNICIPAL SECURITIES GROUP WITH ROBERT T SLAYMAKER SENIOR VICE PRESIDENT 9301290114 930129 BUSINESS BRIEFS AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS UNIT WILL HEAD A CONSORTIUM TO PLAN DEVELOPMENT OF CIVIL AIRPORTS SERVING THE MOSCOW METROPOLITAN AREA PEPSICO INC'S PEPSICOLA INTERNATIONAL ANNOUNCED THE CREATION OF A FRANCHISE PARTNERSHIP TO DISTRIBUTE CADBURY SCHWEPPES PRODUCTS THROUGHOUT CENTRAL EUROPE AMERICAN TELEPHONE & TELEGRAPH CO FORMED A JOINT VENTURE WITH CZECHOSLOVAKIAN TELECOMMUNICATIONS FIRM TESLA AS ARCH PETROLEUM INC ACQUIRED A 50 INTEREST IN ONYX GATHERING CO WHICH OPERATES NATURALGAS PIPELINES IN SOUTH TEXAS TERMS WEREN'T DISCLOSED FREEPORTMCMORAN INC SIGNED A DEFINITIVE AGREEMENT TO BUY 65 OF RIO TINTO MINERA SA A SUBSIDIARY OF ERCROS SA FOR 54 MILLION BASF CORP WILL DISCONTINUE PRODUCTION OF ROTOGRAVURE PRINTING INK AT ITS LODI NJ FACILITY AND WILL PRODUCE IT AT OTHER PLANTS ABOUT 60 EMPLOYEES WILL LOSE THEIR JOBS 9301290113 930129 FINANCING BUSINESS KROGER CO KROGER CO CINCINNATI SAID IT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 125 MILLION COMMON SHARES THE OFFERING WILL CONSIST SOLELY OF PRIMARY SHARES WITH 10 MILLION SHARES TO BE OFFERED IN THE US AND 25 MILLION SHARES TO BE OFFERED INTERNATIONALLY THE COMPANY SAID IT HAS GRANTED UNDERWRITERS A 30DAY OPTION TO BUY AS MUCH AS 1875000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS KROGER SAID GOLDMAN SACHS & CO WILL BE THE LEAD MANAGER FOR THE OFFERING WITH LEHMAN BROTHERS AND JP MORGAN SECURITIES INC ACTING AS COMANAGERS GOLDMANS SACHS INTERNATIONAL LTD WILL BE LEAD MANAGER OF THE INTERNATIONAL OFFERING THE COMPANY SAID IT WILL USE PROCEEDS TO REDUCE DEBT OR FOR GENERAL CORPORATE PURPOSES 9301290112 930129 WHO'S NEWS ALAMAR BIOSCIENCES INC ALAMAR BIOSCIENCES INC SACRAMENTO CALIF JOSEPH L SCHOCKEN PRESIDENT OF BROADMARK CAPITAL CORP AND BROADMARK HOLDING INC IN SEATTLE WAS NAMED A DIRECTOR OF THIS MEDICAL PRODUCTS CONCERN EXPANDING THE BOARD TO NINE MEMBERS 9301290111 930129 BOEING SENIOR DEBT IS PUT UNDER REVIEW MAY BE DOWNGRADED NEW YORK MOODY'S INVESTORS SERVICE INC PLACED THE RATINGS OF ABOUT 17 BILLION OF BOEING CO SENIOR DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE THE REVIEW OF THE AIRCRAFT MAKER'S DEBT WAS PROMPTED BY RAPID DETERIORATION IN THE WORLDWIDE COMMERCIAL AIRCRAFT INDUSTRY THE RATING AGENCY SAID THE DECLINE REFLECTS FALLING ORDER RATES AND GROWING DEMANDS ON AIRCRAFT MAKERS TO EXTEND FINANCING TO THE AILING AIRLINE INDUSTRY A BOEING SPOKESMAN DECLINED TO COMMENT ON THE RATING AGENCY'S ANNOUNCEMENT EARLIER THIS WEEK THE SEATTLE CONCERN SAID IT WILL REDUCE PRODUCTION RATES FOR ALL ITS AIRCRAFT MODELS INCLUDING A 40 CUT FOR THE HIGHLY PROFITABLE 747 JUMBO JET LINE MOODY'S SAID IT WILL ASSESS BOEING'S STRATEGIES FOR COPING WITH THE EXPECTED STEEP DECLINE IN AIRCRAFT DEMAND AND THE INTENSIFYING PRICE COMPETITION AMONG JET MAKERS THE RATING AGENCY ALSO WILL REVIEW BOEING'S FUTURE FINANCIAL EXPOSURE TO ITS WEAKENING CUSTOMER BASE AND THE EFFECT THIS INCREASED RISK WILL HAVE ON DEBT PROTECTION MEASUREMENTS MOODY'S SAID THAT RATINGS UNDER REVIEW AFFECT THE COMPANY'S SENIOR DEBT RATED DOUBLEA3 A SHELF REGISTRATION RATED PAA3 AND 64 MILLION OF SECURED PASSTHROUGH CERTIFICATES RATED DOUBLEA2 9301290110 930129 DIVIDEND NEWS FLEETWOOD ENTERPRISES INC FLEETWOOD ENTERPRISES INC RIVERSIDE CALIF DECLARED A 2FOR1 STOCK SPLIT AND INCREASED THE QUARTERLY CASH DIVIDEND BY 87 THE DIVIDEND ON THE POSTSPLIT SHARES IS 125 CENTS A SHARE PAYABLE MAY 12 TO STOCK OF RECORD APRIL 2 THE COMPANY'S PRESPLIT QUARTERLY DIVIDEND WAS 23 CENTS A SHARE AFTER THE SPLIT IN WHICH NEW SHARES WILL BE ISSUED MARCH 1 TO STOCK OF RECORD FEB 12 THE PRODUCER OF MANUFACTURED HOUSING AND RECREATIONAL VEHICLES WILL HAVE 457 MILLION COMMON SHARES OUTSTANDING 9301290109 930129 WELLES REST IN PEACE AT LAST BY LIZ TROTTA WELLES HANGEN WILL BE BURIED AT ARLINGTON NATIONAL CEMETERY TODAY HIS WIDOW WILL BE GIVEN A FOLDED AMERICAN FLAG AND THE URN HOLDING HIS ASHES DUSTY FRAGMENTS OF A MAN WHO WAS MARCHED INTO A CAMBODIAN JUNGLE 23 YEARS AGO WELLES WAS ON ASSIGNMENT FOR NBC WHEN VIET CONG AND KHMER ROUGE GUERRILLAS SEIZED HIM AND HIS CREW THREE DAYS LATER THEY WERE MURDERED IT HAS TAKEN ALL THESE YEARS AND THE DOGGED WORK OF A FEW GOOD MEN AND A GALLANT WOMAN TO PIECE THE STORY TOGETHER UNTIL SOME BONES WERE RECOVERED A FEW MONTHS AGO 46 JOURNALISTS WERE KNOWN TO HAVE BEEN KILLED IN INDOCHINA AND 19 WERE MISSING IT BEGAN ON MAY 31 1970 BARELY A MONTH AFTER THE US INVADED CAMBODIA UP TO THAT POINT A SIDESHOW TO VIETNAM A DOZEN NEWSMEN HAD ALREADY VANISHED MOST OF THEM WHILE RUNNING ROADS IN THE NO MAN'S LAND SURROUNDING PHNOM PENH THEY WERE NOT COVERING THE INVASION STORY WITH THE ARMY MOVING OVER THE BORDER SUPPORTED BY THE USUAL BRIEFINGS FIELD MAPS MEDICS AND MOST IMPORTANT WEAPONS THEY WERE GOING IN THROUGH THE BACK DOOR IN CIVILIAN CLOTHES UNARMED AND NAKED TO THE HATRED OF AN ENEMY WHOSE CRUELTY HAD YET TO BE REALIZED OUTSIDE THE SMALL AIRTIGHT WORLD OF INDOCHINA PRESS REGULARS FEW RECOGNIZED THEIR NAMES ALTHOUGH HE APPEARED OFTEN ON THE EVENING NEWS WELLES HANGEN WAS ANYTHING BUT A HOUSEHOLD NAME HE WAS A GRUNT NEWSMAN NOT A WAR LOVER OR A HIPPIE ADVENTURER BUT A LINE REPORTER WHO TOOK ENORMOUS RISKS TO GET THE STORY IN THE FIELD IT WAS DANGEROUS IT WAS ROUTINE MR HANGEN SIX FEET AND SERIOUS WOULD NEVER HAVE PASSED THE PERSONALITY TESTS OF AUDIENCE RESEARCH AND HE WOULD HAVE BLANCHED AT THE THOUGHT OF INCLUDING HOW HE GOT A STORY WINCING UNDER FIRE COMING THAT CLOSE INTO HIS COPY OR PICTURES BLESSEDLY HE NEVER FOUND HIMSELF IN THE POSITION OF HAVING TO MAKE SMALL TALK WITH ANCHORS LIKE MOST REPORTERS OF HIS TIME HE WAS NO CULTFIGURE CORRESPONDENT BUT A MEMBER OF THAT LUCKLESS TRIBE MARGINALLY RECOGNIZED FOR ITS GRIMLY NECESSARY COVERAGE OF WAR HE STARTED WITH THE NEW YORK TIMES IN THE 1950S AND REMAINED OVERSEAS AS A TELEVISION REPORTER WHERE HIS COMMAND OF FIVE LANGUAGES GOT HIM OUT OF MORE THAN ONE TIGHT SPOT NOT ONLY AS A SHAKESPEARE SCHOLAR BUT FIRSTHAND HE KNEW THAT ONLY COWARDS DIE MANY TIMES BEFORE THEIR DEATHS AT 40 YEARS OLD HE HAD PUT A LOT OF EFFORT INTO RISKING HIS LIFE HE WAS GOING DOWN ONE ROAD TOO MANY THAT SUNDAY MORNING ALONG ROUTE 3 ABOUT 25 MILES SOUTH OF THE CAPITAL FOLLOWING THE JEEP THAT CARRIED GEORGE SYVERTSEN OF CBS AND HIS CREW TWO MORE CBS CAMERAMEN RODE IN A THIRD CAR MR SYVERTSEN HAD BEEN SCHEDULED TO LEAVE CAMBODIA THAT DAY BUT A COMPLAINING CABLE FROM NEW YORK INSPIRED HIM TO MISS HIS PLANE AND SEEK A FIRE FIGHT IF CBS GOES WE GO SAID MR HANGEN THEY TALKED THEIR WAY PAST A CHECKPOINT ALTHOUGH WARNED THAT THE ROAD WAS NOT SECURE THREE MILES LATER AN ANTITANK ROCKET SLAMMED INTO THE JEEP KILLING MR SYVERTSEN AND HIS COLLEAGUES OUTRIGHT MR HANGEN AND THE OTHERS WERE SURROUNDED INTERROGATED SEARCHED AND LED AWAY DESPITE HIS URGINGS THAT HE WAS SIMPLY A REPORTER FOR A WHILE A COMMITTEE OF JOURNALISTS KEPT UP THE ISSUE BUT TIME SOON SLOWED THEM DOWN AND A LONG TORTUOUS PATH OF CLUES AND FALSE LEADS ALONG THE BAMBOO CIRCUIT TRAILED INTO SILENCE RUMORS WERE THE CRUELEST SUCH AS THAT OLD HANOI FAVORITE THEY WERE KILLED BY AMERICAN BOMBING MEANWHILE MR HANGEN'S WIFE PAT IMMUTABLE IN HER FAITH THAT HE WAS STILL ALIVE HE MUST BE SPEAKING KHMER BY NOW BEGAN WRITING AND LECTURING ABOUT HER HUSBAND AND THE OTHERS GONE MISSING IF PEOPLE FORGET THERE IS NO WAY OUT ARTHUR LORD AN NBC PRODUCER HAD MET MR HANGEN ONLY ONCE BUT FELT COMPELLED TO FOLLOW THE STORY HE TRACKED DOWN DENTAL CHARTS CLOTHING FRAGMENTS BONES AND THE REST OF THE GRIM MINUTIAE I ALWAYS WANTED TO BE A CORRESPONDENT HE SAYS AND WELLES WAS MY HERO WHEN CAMBODIA FELL IN 1975 THE SEARCH VIRTUALLY CAME TO A HALT POL POT AND HIS BLOODTHIRSTY BAND HAD ITS FILL AND THE ARMIES OF VIETNAM MOVED IN FOR MORE KILLING NOT UNTIL THE SUMMER OF 1991 COULD AN NBC CREW ENTER THE AREA THE VILLAGERS WERE EAGER TO TALK THE GUERRILLAS THEY SAID HAD BATTERED THE FOREIGNERS TO DEATH WITH SHOVELS ONE MAN SAID THAT HE HAD HELPED BURY THE BODIES IN A RIVER BED THEIR HANDS TIED BEHIND THEM LAST YEAR A US ARMY EXCAVATION TEAM TOOK A PLANELOAD OF TECHNICIANS TO EXHUME THE REMAINS FOR THREE WEEKS THEY UNCOVERED NOTHING AND SO ABANDONED THE SEARCH AND LEFT THE COUNTRY ONE DAY LATER THE VILLAGERS FOUND A SKULL THE TEAM RETURNED IT HAD BEEN FIVE YARDS OFF SINCE MEDICAL RECORDS HAD ALSO DISAPPEARED WHAT WAS FOUND COULD BE IDENTIFIED ONLY TWO WEEKS AGO WHEN DNA TESTS ENDED THE MYSTERY WELLES HANGEN WAS COMING HOME I AM SO THANKFUL THAT HE DIDN'T HAVE TO SPEND 20 YEARS IN A PRISON CAMP SAYS PAT HER DAUGHTER AND SON 1 1/2 AND FOUR WHEN THEIR FATHER DISAPPEARED WILL STAND BESIDE HER AT ARLINGTON AS 21 GUNS ANNOUNCE A QUIET MAN'S RETURN MS TROTTA IS A FORMER NBC AND CBS CORRESPONDENT WHO COVERED THE WAR IN VIETNAM FROM 1968 TO 1973 9301290108 930129 ROCKWELL SUBCONTRACT CLEARED CANOGA PARK CALIF ROCKWELL INTERNATIONAL INC SAID IT RECEIVED PERMISSION FROM THE US ENERGY DEPARTMENT TO AWARD A RUSSIAN ORGANIZATION A SUBCONTRACT FOR TECHNOLOGY SUPPORT ON A PROGRAM TO DEVELOP NUCLEAR POWER SYSTEMS FOR SATELLITES UNDER THE AGREEMENT THE INSTITUTE OF PHYSICS AND POWER ENGINEERING IN OBNINSK RUSSIA WILL PROVIDE DESIGN GUIDANCE DRAWING ON ITS OWN EXPERIENCE DEVELOPING THE RUSSIAN TOPAZ1 THERMIONIC NUCLEAR REACTOR ROCKWELL'S ROCKETDYNE DIVISION HAS A 20 MILLION CONTRACT FROM THE ENERGY DEPARTMENT TO DESIGN A 40KILOWATT THERMIONIC SPACE NUCLEAR POWER SYTSTEM THAT MIGHT ULTIMATELY BE USED ON SATELLITES 9301290107 930129 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JAN 22 ACCOUNTED FOR 8 OR AN AVERAGE 211 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 66 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 307 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 372 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 361 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 412 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 227 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES DID ALL OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT WHILE PAINEWEBBER NOMURA SECURITIES SALOMON BROTHERS AND MORGAN STANLEY DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9301290106 930129 INTERNATIONAL WORLD ECONOMY OPEC ONCE THE WORLD'S BIG BAD WOLF HAS LOST A GOOD DEAL OF ITS BITE LATELY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CAMPAIGN BY MAJOR OIL EXPORTERS TO CUT PRODUCTION AND RAISE PRICES WHICH IS PROBABLY DOOMED TO FAIL AGAIN IS A REMINDER OF HOW FAR THEY HAVE FALLEN AS PLAYERS IN THE WORLD ECONOMY BANKERS AND STATESMEN ONCE WORRIED THAT ALL THE PETROBILLIONS SLOSHING AROUND GLOBAL MONEY MARKETS WOULD PERMANENTLY DISRUPT THE WORLD FINANCIAL SYSTEM SO THEY FOUND AN INFAMOUS SOLUTION VAST SUMS WERE RECYCLED THROUGH WESTERN BANKS TO NEEDY LATIN AMERICANS AND OTHERS TURNING A DIFFICULT SURPLUS PROBLEM INTO A COMPLEX DEBT CRISIS THIS BOISTEROUS LENDING RAISED DEVELOPING COUNTRIES' DEBT SIXFOLD TO 500 BILLION AN AMOUNT IT SEEMED THEY COULD NEVER REPAY THIS SOVEREIGN DEBT ALSO SHOOK SOME RECYCLING BANKS ESPECIALLY US ONES DOWN TO THEIR VAULTLINED FOUNDATIONS YEARS OF AUSTERITY FOLLOWED BEFORE EITHER BANKS OR BORROWERS BEGAN REGAINING THEIR FINANCIAL HEALTH NOW INSTEAD OF WORRYING ABOUT WHAT TO DO WITH ALL THEIR CASH THE 12 MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WORRY MOSTLY ABOUT HOW TO MAKE ENDS MEET THEY'VE BECOME BIGTIME BORROWERS THEMSELVES FROM SAUDI ARABIA TO NIGERIA TO VENEZUELA THEY SEEK EXTRA FUNDS TO FINANCE BUDGET DEFICITS AND INDUSTRIAL IMPORTS WHETHER TANKS TO HELP KUWAITIS DETER SADDAM HUSSEIN OR BULLDOZERS TO SLASH OPEN BORNEO'S FORESTS OR SIMPLY TO SUBSIDIZE LAYABOUT RELATIVES NONE OF OPEC'S MAIN MEMBERS IS LIVING WITHIN ITS MEANS NOR IS LIKELY TO ANYTIME SOON YET IN ONE SENSE NOBODY CARES THE DAYS WHEN OPEC'S POLICIES STRUCK FEAR IN THE HEARTS OF OIL CONSUMERS ARE LARGELY OVER HENRY KISSINGER ONCE LAUNCHED AN EMERGENCY PLAN AGAINST WHAT HE CONSIDERED OPEC PLANS TO WEAKEN THE WEST WITH ITS OIL WEAPON NOW THERE IS RELATIVE COMPLACENCY ABOUT LONGTERM PRICE AND SUPPLY PROSPECTS AND BANKERS SELDOM EVEN CONSIDER WHAT OPEC MAY DO AS AN ORGANIZATION WE DON'T SEE THEM AT ALL SAYS GERHARD GRAEBE SENIOR ECONOMIST FOR BANK JULIUS BAER IN FRANKFURT FOR ALL THAT THIS IS HARDLY A TRIVIAL CLUTCH OF COUNTRIES THE GROUP STILL PRODUCES 40 OF THE WORLD'S OIL AND ACCOUNTS FOR MOST OF ITS EXPORTS AND RESERVES OPEC'S COMPLEX MACHINATIONS CAN MAKE PRICES YOYO ON GLOBAL MARKETS AT LEAST BRIEFLY WHILE ITS IMMENSE APPETITE FOR MANUFACTURED GOODS AND CAPITAL EQUIPMENT HAS BEEN A RARE BRIGHT SPOT LATELY FOR THE INDUSTRIAL WORLD'S EXPORTERS FOR COUNTLESS BANKS THESE NATIONS REMAIN MAJOR CLIENTS BUT THEIR CLOUT IS GONE OPEC'S ERSTWHILE COHESIVENESS HAS DISSIPATED A 13TH MEMBER ECUADOR EVEN RESIGNED RECENTLY TYPICALLY SAUDI ARABIA HOPES TO MANIPULATE THE MARKET BY GETTING BROAD PRODUCTION CUTS WITH OTHERS DOING MOST OF THE CUTTING THIS PROBABLY WON'T WORK OPEC'S RECURRING PRODUCTION CEILINGS ARE SELDOM HONORED MOST MEMBERS NEED THE INCOME TOO MUCH AND OPEC'S ABILITY TO CONTROL WORLD MARKETS IS WEAKENING WITH AMERICA'S SLOW RECOVERY EUROPE'S SLUMP AND JAPAN'S UNCERTAINTY DEMAND IS SLACK EVENTUALLY NEW SUPPLIES WILL FLOW FROM RUSSIA AND ELSEWHERE WHILE IRAQ SOMEDAY MUST RESUME LARGESCALE EXPORTS ADD HIGHER US ENERGY TAXES MORE USE OF NATURAL GAS PLUS A BIT OF CONSERVATION EVERYWHERE AND OPEC'S ABILITY TO SET MARKET TERMS ERODES FURTHER MEANTIME ITS MEMBERS NEED CASH NOW COSTS OF NEW WEAPONS OR ECONOMIC DEVELOPMENT ARE ENORMOUS MANY HAVE MURKY STATE FINANCES BUT UNPUBLISHED FIGURES SAY FOR EXAMPLE THAT SAUDI ARABIA'S INTERNAL DEBT HAS SOARED TO 50 BILLION FROM ZERO FOUR YEARS AGO WHILE EXTERNAL DEBT IS 45 BILLION KUWAIT RAN A 70 BILLION DEFICIT OVER ITS PAST TWO FISCAL YEARS AND HAS DEBT NEAR 40 BILLION IRAN'S CURRENT ACCOUNT DEFICIT FOR 1991 WAS 4 BILLION ONLY THE UNITED ARAB EMIRATES ARE STILL CREDITORS SAYS A US BANK ECONOMIST IN 1992 THE UAE HAD A 672 MILLION PAYMENTS SURPLUS THIS SWITCH TO CAPITAL CONSUMPTION DIVERTS FUNDS FROM OTHERS BUT EVEN HERE OPEC IS ONLY A THIRDLEVEL CONTRIBUTOR TO ANY GLOBAL SHORTAGE FOR BIGTIME DEBTORS LIKE THE US THE DECLINING ROLE OF JAPAN AND GERMANY IS MORE CRUCIAL BOTH HAVE CUT OVERSEAS LENDING THEY'RE MUCH MORE SIGNIFICANT THAN OPEC SAYS PHILIP VERLEGER OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS BUT WHILE CUTTING BACK ON LENDING AND INVESTING OPEC CAN STILL SPEND IN THE FIRST 11 MONTHS OF LAST YEAR FOR EXAMPLE US EXPORTS TO SAUDI ARABIA WERE 65 BILLION TO VENEZUELA 51 BILLION TO THE UAE 14 BILLION AND TO KUWAIT 12 BILLION ALL ROUGHLY 10 ABOVE A YEAR EARLIER SO OPEC REMAINS IMPORTANT BUT IT NO LONGER WIELDS THE GREAT FINANCIAL POWER THAT ONCE MADE THE WORLD UNEASY AND THOSE DAYS SEEM GONE FOR GOOD 9301290105 930129 HEARD ON THE STREET ETHAN ALLEN SETS TABLE IN BID TO SLASH DEBT BUT SOME MAY FIND STOCK ENTREE A BIT PRICEY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ETHAN ALLEN INTERIORS SELLS CLASSY FURNITURE BUT WILL ITS STOCK HAVE LEGS THE DANBURY CONN FURNITURE MAKER AND RETAILER IS GEARING UP TO SELL 74 MILLION SHARES OR A 48 PUBLIC STAKE THROUGH INVESTMENT BANKERS LED BY KIDDER PEABODY THE 125 MILLION INITIAL PUBLIC OFFERING IS PART OF A FINANCIAL OVERHAUL DESIGNED TO ERASE HALF THE COMPANY'S 3184 MILLION OF DEBT KIDDER WON'T COMMENT BUT THIS OFFERING COULD BE A TOUGH SELL AT THE 17 TO 18 A SHARE THE INVESTMENT BANK HOPES TO GET INVESTORS LOVE TO BUY STOCKS THAT ARE CLOSE TO HOME NOTABLY WALMART STORES AND HOME DEPOT BUT ETHAN ALLEN IS A DIFFERENT ANIMAL INDEBTED TO THE GILLS FROM A 1989 MANAGEMENT BUYOUT IT HAS INCURRED HEAVY INTEREST EXPENSE AND 3 1/2 YEARS OF LOSSES TOTALING 89 MILLION THROUGH LAST MONTH EVEN AFTER THE COMPANY'S PLANNED RECAPITALIZATION SAYS THE OFFERING REGISTRATION PAPERS ETHAN ALLEN WILL CONTINUE TO HAVE INDEBTEDNESS THAT IS SUBSTANTIAL SPECIFICALLY 1541 MILLION OR MORE THAN HALF THE COMPANY'S TOTAL CAPITAL THIS SITUATION WON'T HELP THE COMPANY COMPETE IN AN INDUSTRY THAT AS ETHAN ALLEN'S DOCUMENT NOTES MAY UNDERGO A PERIOD OF SIGNIFICANT CONSOLIDATION AND PRICECUTTING ETHAN ALLEN IS STILL RECOVERING FROM ITS ROLE AS A PAWN IN ONE OF THE SORRIER 1980S MERGER FIGHTS ON WALL STREET A MANAGEMENTLED GROUP BOUGHT IT FOR 388 MILLION FROM THENPARENT INTERCO AS PART OF INTERCO'S ILLFATED 1989 RESTRUCTURING DESIGNED TO FIGHT OFF A TAKEOVER WHAT HAPPENED NEXT INTERCO TUMBLED INTO BANKRUPTCY PROCEEDINGS ADVISER WASSERSTEIN PERELLA SETTLED AN INTERCO LAWSUIT ACCUSING IT OF NEEDLESSLY DELAYING THE ETHAN ALLEN SALE AND ETHAN ALLEN WAS LEFT WITH A LOT OF DEBT JUST AS THE FURNITURE INDUSTRY WAS STRUGGLING KIDDER IS EXPECTED TO PITCH THE POSITIVE SIDE OF THE DEAL OF COURSE THE CHANCE TO BUY STOCK IN ONE OF THE FURNITURE INDUSTRY'S BEST NAMES WITH ITS 275 NATIONWIDE GALLERIES THAT DISPLAY ITEMS SUCH AS 429 MARTHA WASHINGTON CHAIRS AND 800 GILDED MIRRORS RECOGNIZING THAT SOME YOUNGER PEOPLE CONSIDER THE STORES OLDFASHIONED AND STUFFY THE OLDSMOBILE PROBLEM AS ONE INDUSTRY EXECUTIVE PUTS IT ETHAN ALLEN HAS INTRODUCED MORE AFFORDABLE AND TRENDIER COLLECTIONS TO GET A MORE HIP IMAGE IT'S EVEN REDESIGNING ITS STOREFRONTS KIDDER ALSO IS SURE TO NOTE THAT FURNITURE STOCKS HAVE BEEN WALL STREET DARLINGS DURING THE PAST YEAR DESPITE THE FURNITURE INDUSTRY'S FOUR LEAN YEARS FURNITURECOMPANY SHARES INCLUDING BASSETT FURNITURE INDUSTRIES AND LEGGETT & PLATT SKYROCKETED 82 LAST YEAR ACCORDING TO A 25STOCK INDEX KEPT BY FURNITURE TODAY NEWSPAPER WE'VE HAD FOUR TOUGH YEARS IN THE FURNITURE BUSINESS SAYS THE NEWSPAPER'S HENRY HOWARD BUT IT'S BEGINNING TO TURN UP PUT THAT TOGETHER WITH A GENERAL UPTURN IN THE ECONOMY AND YES ETHAN ALLEN HAS A GOOD SHOT AT A SUCCESSFUL OFFERING THE QUESTION IS WHETHER INVESTORS WILL PAY 17 TO 18 FOR IT ANALYST PATRICIA LOEPKER AT AG EDWARDS IN ST LOUIS SAYS FURNITURE COMPANIES' SALES SHOULD CONTINUE TO RISE THIS YEAR AFTER FOUR YEARS OF RECESSIONARY TOUGH TIMES ETHAN ALLEN'S SALES FOR THE SECOND QUARTER ENDED DEC 31 ROSE 103 FROM A YEAR EARLIER FOR WHICH MANAGEMENT CREDITS A BEEFEDUP MARKETING EFFORT AND ITS NEWLY INTRODUCED AMERICAN IMPRESSIONS AND AMERICAN DIMENSIONS LINES YET UNLESS THE ECONOMY TAKES A SHARP TURN FOR THE BETTER MRS LOEPKER ENVISIONS THE LOWER AND MIDDLEEND RETAILERS OUTPACING PRICIER STORES SUCH AS ETHAN ALLEN AT LEAST UNTIL THE END OF 1993 PEOPLE ARE LOOKING FOR VALUE SHE SAYS NO ONE EXPECTS FURNITURECOMPANY STOCKS TO RISE AS MUCH IN 1993 AS THEY DID LAST YEAR WHEN INVESTORS BID UP THEIR PRICES IN ANTICIPATION OF INCREASED CONSUMER SPENDING BUT IF THE ECONOMY IS IN A TYPICAL RECOVERY IT'S STILL EARLY IN THE CYCLE FOR FURNITURE STOCKS AND THEY COULD GO HIGHER BASED ON THAT PATTERN WE STILL THINK THERE'S SOME ROOM LEFT IN THESE STOCKS SAYS JOHN BAUGH OF WHEAT FIRST SECURITIES IN RICHMOND VA THEN AGAIN HARDLY ANYTHING HAS BEEN TYPICAL IN THE FURNITURE GROUP LATELY MR BAUGH ADDS ONE FURNITURE EXECUTIVE SAYS ETHAN ALLEN WILL PROBABLY BE FINE IF THEY CAN GET OUT OF THE WOODS A LOT RIDES ON THE SHOULDERS OF ETHAN ALLEN'S 48YEAROLD CHAIRMAN M FAROOQ KATHWARI HE GREW UP IN KASHMIR IN THE SHADOW OF THE HIMALAYAS AND HAS PREVIOUSLY DESCRIBED HIS OVERHAUL OF THE COMPANY'S STODGY IMAGE AS A REVOLUTION THE OFFERING DOCUMENT DISCLOSES THAT ETHAN ALLEN HOLDS A 25 MILLION KEY MAN INSURANCE POLICY ON HIS LIFE 9301290104 930129 WHO'S NEWS EASTERN ENTERPRISES EASTERN ENTERPRISES WESTON MASS SAMUEL FRANKENHEIM 60 YEARS OLD COUNSEL WITH ROPES & GRAY A BOSTON LAW FIRM WAS NAMED A TRUSTEE OF THIS NATURAL GAS AND INLAND WATER TRANSPORTATION CONCERN EXPANDING BOARD MEMBERSHIP TO 12 9301290103 930129 OTC FOCUS NASDAQ SHARES DROP AGAIN BUT SELLING SLACKS OFF AFTER FIRST HOUR OF TRADING BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROFITTAKING DEPRESSED OVERTHECOUNTER STOCKS FOR A SECOND DAY BUT THE MOST INTENSE SELLING WAS OVER IN THE FIRST HOUR OF TRADING THE NASDAQ COMPOSITE INDEX WHICH TUMBLED MORE THAN NINE POINTS OR 13 WEDNESDAY IN ITS BIGGEST ONEDAY DROP SINCE JUNE SHED FIVE POINTS IN THE OPENING HOUR OF TRADING YESTERDAY BUT TRADERS SAID A COMBINATION OF FRESH BUYING FROM INSTITUTIONAL INVESTORS AND AN EASE IN THE FLOW OF SELL ORDERS HELPED THE MARKET STABILIZE BY MIDMORNING PRICES REMAINED IN A RELATIVELY NARROW BAND OVER THE BALANCE OF THE DAY THE NASDAQ INDEX FINISHED WITH JUST A MODERATE LOSS OF 323 POINTS OR 046 TO 69467 DECLINING ISSUES OUTNUMBERED ADVANCERS BY A SLIM MARGIN OF 1346 TO 1275 NATIONAL MARKET SYSTEM VOLUME WAS 229170000 SHARES DOWN FROM 242170000 WEDNESDAY I THINK PEOPLE PANICKED A BIT THIS MORNING SAID PATRICK DAVIS HEAD OF NASDAQ TRADING AT SALOMON BROTHERS AFTER WEDNESDAY'S SHARP SELLOFF WHICH FOLLOWED A FOURMONTH RALLY IN SMALL STOCKS SOME INVESTORS WERE READY TO YANK MONEY OUT OF THE MARKET EARLY BUT ONCE THOSE SELL ORDERS WERE SATISFIED TRADERS SAID THE MARKET CALMED BUOYANT PRICES ON THE NEW YORK STOCK EXCHANGE AND IN THE BOND MARKET ALSO HELPED SETTLE THE NERVES OF NASDAQ INVESTORS THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX CLOSED WITH A GAIN OF 025 OR 010 TO 24170 WHILE THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1486 OR 045 TO 330625 LONGTERM GOVERNMENT SECURITIES MEANWHILE ROSE NEARLY 1/2 POINT DEPRESSING THE YIELD ON THE 30YEAR TREASURY TO 720 BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO SAID THE EASING IN TRADING ACTIVITY YESTERDAY MIGHT SIGNAL THAT THE WORST OF THE SELLING HAS PASSED VOLUME HAS QUIETED DOWN HEAVIER VOLUME WOULD MEAN THERE IS A GREATER SENTIMENT OF PEOPLE WANTING TO GET OUT HE SAID BUT MICHAEL PHILLIPS AN OTC TRADER AT INTERSTATEJOHNSON LANE SAID MOST MARKET PLAYERS ARE STILL UNSURE ABOUT WHICH WAY TO BET ON THE MARKET BECAUSE OF THAT PRICES JUST FLOUNDERED AROUND ALL DAY HE SAID SHARES OF MOBILE COMMUNICATIONS COMPANIES PLUNGED ON RENEWED WORRIES THAT THE USE OF CELLULAR TELEPHONES WILL BE LINKED TO HEALTH PROBLEMS IN SOME PEOPLE TELEVISION TALK SHOW HOST LARRY KING WAS SCHEDULED TO FOCUS ON THE TOPIC ON HIS CABLE NEWS NETWORK SHOW LAST NIGHT A KING DISCUSSION OF THE SUBJECT LAST WEEK HELPED SET OFF SHARP SELLING IN THE GROUP CELLULAR PHONE INDUSTRY OFFICIALS HAVE DENIED CHARGES THEIR PRODUCTS ARE DANGEROUS AMONG STOCKS AFFECTED MCCAW CELLULAR COMMUNICATIONS LOST 7/8 TO 35 7/8 LIN BROADCASTING WHICH IS 52OWNED BY MCCAW SLUMPED 2 7/8 TO 82 AND FLEET CALL DROPPED 1 1/4 TO 22 1/4 THE NASDAQ UTILITY INDEX SHED 1046 OR 133 TO 77436 TECHNOLOGY STOCKS WHICH LED THE RETREAT WEDNESDAY WERE MOSTLY LOWER SHARES OF INTEL A SANTA CLARA CALIF SEMICONDUCTOR MAKER DROPPED 3 5/8 TO 109 WHILE APPLE COMPUTER BASED IN CUPERTINO CALIF LOST 3/8 TO 59 7/8 BUT SHARES OF MICROSOFT A REDMOND WASH SOFTWARE CONCERN ADVANCED 3/4 TO 87 SUN MICROSYSTEMS CLOSED WITH A SLIM GAIN OF 1/8 TO 38 5/8 AFTER TRADING AS LOW AS 37 LATE WEDNESDAY THE MOUNTAIN VIEW CALIF COMPUTER WORKSTATION COMPANY REPORTED THAT EARNINGS FOR THE SECOND QUARTER ENDED LAST MONTH FELL TO 33 CENTS A SHARE FROM 47 CENTS A YEAR EARLIER THE STOCK WAS DOWNGRADED BY ANALYSTS AT MABON SECURITIES AND PAINEWEBBER LOTUS DEVELOPMENT TRADED AS HIGH AS 24 1/8 BEFORE FALLING BACK TO 21 7/8 UP 1/8 FOR THE DAY THE CAMBRIDGE MASS SOFTWARE COMPANY REPORTED EARNINGS OF 35 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH EARNINGS FROM OPERATIONS OF 56 CENTS A SHARE A YEAR AGO THE LATEST QUARTER'S RESULTS WERE HIGHER THAN EXPECTED MICROS SYSTEMS TUMBLED 5 TO 15 1/2 AFTER THE COMPANY POSTED FLAT EARNINGS THE BELTSVILLE MD MAKER OF ELECTRONIC CASH REGISTER TERMINALS HAD A PROFIT OF 16 CENTS A SHARE IN THE SECOND QUARTER ENDED DEC 31 UNCHANGED FROM THE YEARAGO LEVEL BIG BOARDLISTED WESTINGHOUSE ELECTRIC OWNS A MAJORITY STAKE IN THE COMPANY BIOTECHNOLOGY COMPANIES WHICH ALSO WERE AMONG THE WEAKEST GROUPS WEDNESDAY CLOSED MIXED WHILE SHARES OF AMGEN BASED IN THOUSAND OAKS CALIF LOST 1 TO 59 THE STOCK OF BOULDER COLOBASED SYNERGEN GAINED 1 3/4 TO 57 1/2 AND CAMBRIDGE MASSBASED BIOGEN ROSE 1 7/8 TO 39 5/8 HOMEDCO GROUP JUMPED 4 TO 34 THE COMPANY REPORTED A PROFIT OF 41 CENTS A SHARE FOR THE FIRST QUARTER ENDED DEC 31 COMPARED WITH EARNINGS FROM OPERATIONS OF 29 CENTS A SHARE A YEAR EARLIER REVENUE AT THE FOUNTAIN VALLEY CALIF HOME HEALTH CARE PROVIDER JUMPED TO 1133 MILLION FROM 667 MILLION AMOSKEAG CLIMBED 4 1/8 TO 24 1/4 DUMAINES A NEW HAMPSHIRE TRUST SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT MIGHT REDUCE ITS HOLDING IN THE BOSTON TEXTILE AND RAILROAD COMPANY DUMAINES HAS A 664 VOTING INTEREST BAYBANKS SKIDDED 7/8 TO 41 7/8 EVEN THOUGH THE BOSTON BANK HOLDING COMPANY POSTED IMPROVED EARNINGS AND REINSTATED ITS QUARTERLY DIVIDEND IT HAD A PROFIT OF 197 A SHARE IN THE FOURTH QUARTER UP FROM 40 CENTS A SHARE LAST YEAR BOTH PERIODS INCLUDED GAINS FROM THE SALE OF SECURITIES MCAFEE ASSOCIATES LOST 3 TO 14 A ROBERTSON STEPHENS & CO ANALYST REDUCED HIS ESTIMATE FOR THE SANTA CLARA CALIF COMPANY'S 1993 REVENUE ON CONCERN ABOUT LOWERTHANEXPECTED LICENSE BOOKINGS AT THE COMPANY HE DIDN'T CHANGE HIS EARNINGS FORECAST MCAFEE A SOFTWARE COMPANY CAME TO MARKET AT 16 A SHARE IN AN INITIAL PUBLIC OFFERING LAST OCTOBER 9301290102 930129 US PENSION FUNDS POUR MONEY INTO INTERNATIONAL STOCK MARTS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL PENSION FUNDS CHARGED INTO FOREIGN STOCKS LAST YEAR INVESTING MORE THAN 31 BILLION IN INTERNATIONAL STOCK MARKETS A NEW SURVEY SHOWS THE TORRENT OF MONEY 31 BILLION IS NEARLY TWOTHIRDS THE SIZE OF THE THAI STOCK MARKET FOR EXAMPLE SHOWS HOW STRONG THE PUSH INTO FOREIGN INVESTING HAS BECOME AMONG BIG US INVESTORS INDIVIDUAL INVESTORS TOO ARE BEING URGED TO GET INTO FOREIGN STOCKS MANY FINANCIAL PLANNERS THESE DAYS RECOMMEND THAT SMALL INVESTORS PUT AS MUCH AS 10 OF THEIR INVESTMENT PORTFOLIO IN INTERNATIONAL STOCKS THROUGH MUTUAL FUNDS OR OTHER MANAGEDINVESTMENT VEHICLES THE FLOOD OF MONEY OVERSEAS ALSO IS A SIGN THAT PENSION MANAGERS ARE SEARCHING FOR INVESTMENTS WITH HIGHER YIELDS AS US INTEREST RATES HAVE DROPPED AND AS US STOCK MARKETS PRODUCED GENERALLY LACKLUSTER RETURNS LAST YEAR ACCORDING TO THE STUDY BY GREENWICH ASSOCIATES A PENSION CONSULTING FIRM THE GREATEST GROWTH IN INTERNATIONAL STOCK INVESTING WAS AMONG PUBLIC PENSION FUNDS WHICH OVERSEE THE RETIREMENT MONEY OF STATE CITY AND FEDERAL GOVERNMENT EMPLOYEES THE FOREIGN STOCKHOLDINGS OF PUBLIC PENSION FUNDS JUMPED TO 481 BILLION LAST YEAR FROM 289 BILLION IN 1991 FOREIGN STOCKHOLDINGS OF CORPORATE PENSIONS ROSE TO 707 BILLION LAST YEAR FROM 593 BILLION THE YEAR BEFORE FOREIGN STOCKS MADE UP 79 OF THE ASSETS OF CORPORATE FUNDS LAST YEAR AND 56 OF THE ASSETS OF PUBLIC FUNDS IRONICALLY THE TREND HAS CAUGHT HOLD AMONG LARGE INVESTORS AT A TIME WHEN MANY FOREIGN STOCK MARKETS HAVE PERFORMED DISMALLY LAST YEAR THE DOW JONES WORLD STOCK INDEX FELL 75 BUT PENSION MANAGERS SURVEYED FOR THE STUDY SAID THEY BELIEVE THEY WILL FIND BETTER RETURNS FROM INTERNATIONAL STOCKS OVER THE NEXT FIVE YEARS THAN IN US STOCK AND BOND MARKETS THE STUDY INCLUDED INTERVIEWS WITH 1600 EXECUTIVES WHO OVERSEE OVER CORPORATE AND PUBLIC PENSION FUNDS AS WELL AS FOUNDATIONS AND ENDOWMENTS OVER THE NEXT FIVE YEARS THE SURVEY SHOWED EXECUTIVES OF PUBLIC PENSIONS THINK FOREIGN STOCKS WILL PRODUCE ANNUAL RETURNS OF 11 CORPORATE PENSION MANAGERS ARE SOMEWHAT LESS OPTIMISTIC SAYING THEY EXPECT RETURNS AVERAGING AROUND 10 US STOCKS WILL BRING ANNUAL RETURNS OF ABOUT 10 THESE MANAGERS PREDICT RECENT EXPERIENCE NOTWITHSTANDING THE SURVEY FOUND THAT THE STAMPEDE INTO FOREIGN STOCKS ISN'T LIKELY TO END SOON THE SURVEY FOUND THAT PUBLIC PENSION FUNDS PLAN TO INVEST AN ADDITIONAL 50 BILLION IN INTERNATIONAL STOCKS OVER THE NEXT THREE YEARS THAT WOULD BRING THEIR INTERNATIONAL STOCKHOLDINGS TO NEARLY 100 BILLION CORPORATE PENSION FUNDS TOO SAY THEY PLAN TO KEEP POURING MONEY INTO FOREIGN STOCKS AT A RATE THAT WOULD BRING THEIR TOTAL HOLDINGS TO 116 BILLION BY 1995 IN THE PAST PUBLIC PENSION FUNDS IN PARTICULAR WERE RELUCTANT TO INVEST HEAVILY OVERSEAS SAID CHRIS MCNICKLE A GREENWICH MANAGING DIRECTOR THEY WERE MORE SENSITIVE TO INVESTING IN THE USA AND THERE WAS A LOWER LEVEL OF SOPHISTICATION HE SAID THAT HAS CHANGED AS INVESTMENT RETURNS HAVE DROPPED BECAUSE OF LOWER US INTEREST RATES A RELATIVELY FLAT US STOCK MARKET AND THE RECENT RECESSION OF COURSE PENSION FUNDS HAVE BEEN DIPPING THEIR TOES IN FOREIGN STOCK MARKETS FOR SOME TIME OVER THE PAST FIVE YEARS CORPORATE PENSION FUNDS HAVE QUADRUPLED THEIR INVESTMENTS IN FOREIGN STOCKS BUT 1992 MARKED THE FIRST TIME THAT PUBLIC PENSION FUNDS REALLY JUMPED ON THE BANDWAGON NEARLY DOUBLING THE ASSETS THEY HAD INVESTED ABROAD PUBLIC PENSION FUNDS HAVE FINALLY BEEN CONVERTED AND NOW THEY ARE FOLLOWING THE CORPORATE PENSIONS MR MCNICKLE SAID THE BIG LOSER AS PENSION FUNDS CHARGE INTO FOREIGN STOCKS HAS BEEN BOND HOLDINGS WHICH HAVE FALLEN OVER THE PAST YEAR THE GREENWICH SURVEY FOUND FOR PUBLIC PENSION FUNDS FIXEDINCOME INVESTMENTS FELL TO 406 OF THEIR PORTFOLIOS FROM 43 THE YEAR BEFORE THE SURVEY FOUND SIMILARLY CORPORATE PENSION FUNDS' FIXEDINCOME INVESTMENTS DROPPED TO 264 FROM 272 9301290101 930129 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 ASSOCIATES CORP OF NORTH AMERICA 300 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH DEALERS LED BY KIDDER PEABODY & CO THE FIRST PART CONSISTING OF 150 MILLION OF NOTES DUE FEB 1 1998 WAS PRICED AS 6 1/8S AT 99808 TO YIELD 617 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 150 MILLION OF NOTES DUE FEB 1 2003 WAS PRICED AS 6 7/8S AT 99323 TO YIELD 697 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP ASSOCIATES CORP IS A UNIT OF FORD MOTOR CO NEW YORK TELEPHONE CO 100 MILLION OF DEBENTURES DUE FEB 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY KIDDER PEABODY THE DEBENTURES WILL BE REOFFERED AS 7 5/8S AT 98133 TO YIELD 7787 NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 575 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE DEBENTURES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP SOUTHERN CALIFORNIA EDISON CO 125 MILLION OF NOTES DUE FEB 1 1998 WON BY DEALERS LED BY LEHMAN BROTHERS THE BONDS WILL BE REOFFERED AS 5 7/8S AT 99307 TO YIELD 6038 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE NOTES ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P SOUTHERN CALIFORNIA EDISON IS A UNIT OF SCECORP KENFIL INC INITIAL 25 MILLION COMMON SHARES OFFERED AT 7 EACH THROUGH AN UNDERWRITING GROUP MANAGED BY PIPER JAFFRAY INC US ROBOTICS INC 28 MILLION COMMON SHARES PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST INC CONNECTICUT HOUSING FINANCE AUTHORITY 76 MILLION 1993 SERIES A HOUSING MORTGAGE FINANCE PROGRAM BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 300 IN 1994 TO 620 IN 2014 BOTH MOODY'S AND S&P RATED THE OFFERING DOUBLEA LOUISIANA CORRECTIONAL FACILITIES CORP 150 MILLION LEASE REVENUE REFUNDING BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP YIELDS FOR THE NONCALLABLE BONDS RANGE FROM 250 IN 1993 TO 565 IN 2003 THIS ISSUE IS INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL FARM CREDIT BANKS 115 MILLION OF MEDIUMTERM NOTES DUE FEB 2 1996 PRICED AT PAR TO YIELD 486 INITIALLY THE NOTES NONCALLABLE FOR ONE YEAR WILL BE REOFFERED AT VARIOUS PRICES THROUGH DEALERS LED BY GOLDMAN SACHS & CO THE ISSUE WAS PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE FEDERAL HOME LOAN BANKS 117 MILLION OF NOTES DUE FEB 5 1996 PRICED AT PAR TO YIELD 4795 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 155 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC FEDERAL HOME LOAN BANKS 105 MILLION OF NOTES DUE FEB 5 1996 PRICED AT PAR TO YIELD 47 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SIX BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO FEDERAL HOME LOAN BANKS 100 MILLION OF NOTES DUE MAY 30 1997 WAS PRICED AT PAR TO YIELD 545 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE A BLEND OF THE TREASURY THREEYEAR AND FIVEYEAR NOTES THE ISSUE'S FIRST COUPON DATE IS MAY 30 1993 THE DEAL WILL BE SOLD THROUGH FIRST TENNESSEE BANK BANQUE FRANCAISE DU COMMERCE EXTERIEUR FRANCE 20 BILLION YEN OF 42 EUROBONDS DUE JUNE 6 1996 AT ISSUE PRICE PAR VIA NIKKO SECURITIES CO GUARANTOR REPUBLIC OF FRANCE FEES 01875 BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 100 MILLION OF 8 1/2 SUBORDINATED EUROBONDS DUE FEB 26 2003 AT ISSUE PRICE 10071 VIA SG WARBURG SECURITIES BOOKS AND SALOMON BROTHERS INTERNATIONAL REOFFERED AT 9906 TO YIELD 864 ANNUALLY A MARGIN OF 37 BASIS POINTS ABOVE THE UK TREASURY 8 BONDS DUE 2003 GUARANTOR GERMAN STATE OF BAVARIA FEES 2 BAYERISCHE VEREINSBANK AG GERMANY 200 MILLION CANADIAN DOLLARS OF 8 EUROBONDS DUE MARCH 2 1998 AT ISSUE PRICE 101695 VIA MORGAN STANLEY INTERNATIONAL BOOKS BARCLAY DE ZOETE WEDD AND BAYERISCHE VEREINSBANK AG REOFFERED AT 10007 TO YIELD 799 ANNUALLY A MARGIN OF 50 BASIS POINTS ABOVE COMPARABLE GOVERNMENT'S 6 1/4 ISSUE DUE 1998 FEES 1 7/8 CAISSE CENTRALE DE CREDIT IMMOBILIER FRANCE 100 MILLION MARKS OF 7 1/4 EUROBONDS DUE FEB 23 2000 AT ISSUE PRICE 101 7/8 VIA BERLINER HANDELS & FRANKFURTER BANK YIELD 741 ANNUALLY AFTER DEDUCTING FULL FEES A MARGIN OF 50 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT ISSUE FEES 2 3/4 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SUPRANATIONAL C250 MILLION OF 8 3/8 EUROBONDS DUE FEB 25 2003 OFFERED INITIALLY AT FIXED 9940 VIA IBJ INTERNATIONAL YIELD 841 ANNUALLY A MARGIN OF 35 BASIS POINTS ABOVE 7 1/4 CANADA BONDS DUE IN 2003 FEES 0325 GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION OF 6 1/8 EUROBONDS DUE MARCH 4 1999 AT ISSUE PRICE 10105 VIA UBS PHILLIPS & DREW LTD INITIALLY OFFERED AT FIXED 9945 TO YIELD 624 ANNUALLY A MARGIN OF 28 BASIS POINTS ABOVE INTERPOLATED US TREASURY CURVE FEES 1 7/8 IBERDROLA INTERNATIONAL BV SPAIN 300 MILLION MARKS OF 7 5/8 EUROBONDS DUE MARCH 9 2000 AT ISSUE PRICE 101625 VIA COMMERZBANK AG YIELD MINUS FULL FEES 784 A MARGIN OF 90 BASIS POINTS ABOVE THE COMPARABLE GERMAN BUND GUARANTOR IBERDROLA SA BILBAO SPAIN FEES 2 3/4 LEEDS PERMANENT BUILDING SOCIETY UK 100 MILLION OF COLLARED FLOATING RATE NOTES DUE FEBRUARY 2003 VIA SALOMON BROTHERS INTERNATIONAL INTEREST PAID AT STERLING SIXMONTH LONDON INTERBANK OFFERED RATE MINIMUM 7 MAXIMUM 11 ISSUE PRICE PAR FEES 1/2 ROYAL BANK OF SCOTLAND UK 150 MILLION OF 10 1/2 SUBORDINATED EUROBONDS DUE MARCH 1 2013 AT FIXED INITIAL OFFER PRICE 9990 VIA UBS PHILLIPS & DREW LTD YIELD 1051 A MARGIN OF 140 BASIS POINTS ABOVE THE 9 GILT DUE IN 2012 FEES 5/8 9301290100 930129 TELECOMMUNICATIONS BIG ELECTRONICS FIRMS SUPPORT GENERAL MAGIC BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL A LITTLE COMPANY BACKED BY SOME OF THE MAJOR PLAYERS IN THE ELECTRONICS INDUSTRY WILL SOON ATTEMPT TO IMPOSE AN IMPORTANT STANDARD ON THE NASCENT MARKET FOR WIRELESS COMMUNICATORS GENERAL MAGIC INC IS EXPECTED TO ANNOUNCE ON FEB 8 THAT IT IS DEVELOPING SOFTWARE THAT ALLOWS DISPARATE WIRELESS PORTABLE COMPUTERS TO TALK TO EACH OTHER AND ON DIFFERENT NETWORKS THE COMPANY IS EXPECTED TO NAME APPLE COMPUTER INC MOTOROLA INC SONY CORP AND AMERICAN TELEPHONE & TELEGRAPH CORP AS ITS INVESTORS GENERAL MAGIC IS HOPING THE NEW SOFTWARE WILL SERVE AS A COMMON LANGUAGE WHEN DATA IS SWAPPED BETWEEN DIFFERENT BRANDS OF COMPUTERS AND OTHER COMMUNICATIONS DEVICES SUCH A UNIFYING FORMAT WOULD SERVE TO ADD APPEAL AND HELP SPUR THE GROWTH OF A NEW CLASS OF HANDHELD COMPUTERS SOMETIMES REFERRED TO AS PERSONAL DIGITAL ASSISTANTS BY WORKING TO ELIMINATE THE WORRY THAT COMPUTERS MADE BY DIFFERENT COMPANIES WOULDN'T BE ABLE TO COMMUNICATE DURING THE EARLY YEARS OF THE PERSONAL COMPUTER INDUSTRY MANUFACTURERS EACH SOLD COMPUTERS THAT WERE BASED ON PROPRIETARY CIRCUIT DESIGNS AND SOFTWARE THAT COULD TRADE DATA ONLY WITH COMPUTERS MADE BY THE SAME COMPANY SALES OF SUCH COMPUTERS WERE CONSTRAINED BECAUSE OF THEIR INABILITY TO TAP INTO A GROWING NETWORK OF COMPUTERS MADE BY INTERNATIONAL BUSINESS MACHINES CORP WHOSE COMPUTER DESIGN WAS BECOMING WIDELY ACCEPTED CONSEQUENTLY IBM COMPUTERS AND CLONES OF IBM MACHINES EVENTUALLY BEGAN TO SET A STANDARD INDUSTRY PLAYERS SUCH AS AT&T MOTOROLA SONY AND IBM ARE EXPECTED TO ANNOUNCE THAT THEY ARE WORKING WITH GENERAL MAGIC TO POSSIBLY INCORPORATE THE NEW FORMAT INTO THEIR PRODUCTS EACH COMPANY REFUSED TO COMMENT ON THEIR ROLE WITH GENERAL MAGIC THE COMMUNICATIONS SOFTWARE IS EXPECTED TO BE CALLED TELESCRIPT GENERAL MAGIC IS ALSO EXPECTED TO TALK ABOUT A FORMAT THAT CAN BE USED IN ELECTRONICMESSAGING SYSTEMS SUCH AS THOSE USED IN PAGERS AND COMPUTERS GENERAL MAGIC A MOUNTAIN VIEW CALIF COMPANY FOUNDED BY SEVERAL FORMER APPLE EMPLOYEES IN 1990 HAS NOT YET DISCUSSED PUBLICLY ANY OF THE PRODUCTS IT HAS UNDER DEVELOPMENT A GENERAL MAGIC SPOKESWOMAN REFUSED TO REVEAL ANY DETAILS ABOUT THE ANNOUNCEMENT OTHER THAN TO SAY THE COMPANY PLANNED TO DISCUSS ITS NEW TECHNOLOGY BUT NOT TO UNVEIL ANY PRODUCTS GENERAL MAGIC HAS BEEN TRYING TO LURE COMPUTER MAKERS INTO ADOPTING THE FORMAT INTO THEIR PRODUCTS BY SHOPPING AROUND THEIR TECHNOLOGY THE COMPANY IS EXPECTED TO BASE FUTURE SOFTWARE PRODUCTS ON THIS TECHNOLOGY THE PERSONAL COMMUNICATORS MARKET THAT GENERAL MAGIC IS TARGETING IS STILL YOUNG AND UNFORMED THE GROWTH OF THAT MARKET DEPENDS ON THE WIDESPREAD ACCEPTANCE OF HANDHELD COMPUTERS AND OTHER PORTABLE COMMUNICATIONS DEVICES AND THE NEED TO LINK THOSE DEVICES INTO ELECTRONIC DATA NETWORKS SO FAR MASS SALES HAVE BEEN HINDERED BY HIGH PRICES AND A LACK OF COMPELLING REASONS FOR USING THEM STILL MAJOR ELECTRONICS AND COMPUTER COMPANIES SUCH AS APPLE HEWLETTPACKARD CO AND MICROSOFT CORP ARE DEVELOPING PRODUCTS THAT THEY EXPECT WILL FEED THE DEMANDS OF THAT MARKET FOR INSTANCE APPLE PLANS TO BEGIN SELLING LATER THIS YEAR A SMALL LIGHTWEIGHT PORTABLE COMPUTER CALLED NEWTON THAT USES AN ELECTRONIC PEN EO INC USING AN AT&T MICROPROCESSOR RECENTLY INTRODUCED A PENBASED COMPUTER WITH A BUILTIN CELLULAR PHONE SUCH COMPANIES ARE ALSO DEVELOPING THEIR OWN METHODS OF ZAPPING DATA TO AND FROM OTHER COMPUTERS THOSE METHODS COULD BECOME COMPETITORS TO GENERAL MAGIC'S OFFERING CURRENTLY DATA IS SENT IN A SIMPLE COMPUTER SOFTWARE LANGUAGE THAT HAS TO BE TAILORED TO DIFFERENT COMPUTERS THAT DATA LANGUAGE DOESN'T HAVE ANY BELLS AND WHISTLES AND DOESN'T GIVE YOU A LOT OF CREATIVE OPTIONS SAID TIM BAJARIN PRESIDENT OF CREATIVE STRATEGIES RESEARCH INTERNATIONAL A TECHNOLOGY CONSULTING FIRM GO CORP OF FOSTER CITY CALIF WHOSE OPERATINGSYSTEM SOFTWARE IS DESIGNED FOR PORTABLE COMPUTERS THAT USE ELECTRONIC PENS TO ENTER INFORMATION IS WORKING WITH THE GENERAL MAGIC TECHNOLOGY SAID WILLIAM CAMPBELL GO'S CHIEF EXECUTIVE OFFICER HE WOULDN'T DISCUSS ANY FURTHER DETAILS MICROSOFT THE REDMOND WASH SOFTWARE MAKER IS EVAULATING GENERAL MAGIC'S SOFTWARE BUT HASN'T DECIDED WHETHER TO USE IT SAID JONATHAN LAZARUS MICROSOFT'S VICE PRESIDENT OF SYSTEMS STRATEGY GENERAL MAGIC IS A VERY INTERESTING COMPANY MR LAZARUS SAID BUT ADDED AS YOU CAN IMAGINE WE HAVE OUR OWN EFFORTS IN THIS AREA FOR EXAMPLE MICROSOFT HAS SOFTWARE THAT WILL TRANSLATE DATA BETWEEN DIFFERENT TYPES OF COMPUTERS REGARDLESS OF FORMAT HEWLETTPACKARD WHICH MAKES A PALMSIZE COMPUTER THAT CAN RECEIVE WIRELESS DATA MESSAGES IS ALSO EVALUATING GENERAL MAGIC'S SOFTWARE BUT HASN'T MADE ANY DECISION ON IT AN HP SPOKESMAN SAID ACCORDING TO SOME PEOPLE FAMILIAR WITH GENERAL MAGIC MCCAW CELLULAR COMMUNICATIONS CO IS ALSO SUPPORTING THE EFFORT TO CREATE A NEW STANDARD LAURENCE HOOPER AND JOHN J KELLER CONTRIBUTED TO THIS ARTICLE 9301290099 930129 BUSINESS BRIEF AIRGAS INC GAS DISTRIBUTOR POSTS RISE OF 66 IN QUARTERLY PROFIT AIRGAS INC SAID NET INCOME ROSE 66 IN ITS FISCAL THIRD QUARTER ENDED DEC 31 BECAUSE OF INCREASED PROFIT FROM DISTRIBUTION OPERATIONS AS WELL AS LOWER INTEREST COSTS THE WILMINGTON DEL DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES SAID NET INCOME ROSE TO 29 MILLION OR 19 CENTS A SHARE FROM 1750000 OR 13 CENTS A SHARE SALES CLIMBED 14 TO 1014 MILLION PRIMARILY DUE TO THE ACQUISITION OF 24 DISTRIBUTION COMPANIES SINCE OCTOBER 1991 AND THE ADDITION OF CALCIUM CARBIDE REVENUE PREVIOUSLY TREATED AS RELATED TO A JOINT VENTURE INTEREST COSTS FELL TO 28 MILLION FROM 32 MILLION IN THE FIRST NINE MONTHS NET INCOME ROSE TO 83 MILLION OR 55 CENTS A SHARE FROM 49 MILLION OR 38 CENTS A SHARE SALES ROSE TO 3017 MILLION FROM 2574 MILLION 9301290098 930129 ENTERPRISE FINANCING SMALL BUSINESS VENTURE CAPITALISTS RAISED 75 MORE MONEY LAST YEAR BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL MORE MONEY POURED INTO VENTURE CAPITAL FUNDS DURING 1992 VENTURE CAPITALISTS RAISED 24 BILLION FROM INVESTORS LAST YEAR UP 75 FROM THE YEAR BEFORE PRIVATE EQUITY ANALYST REPORTS IT WAS A YEAR FOR BRAND NAMES SAYS STEVEN GALANTE EDITOR OF THE WEST NEWTON MASS NEWSLETTER NEARLY 75 OF THE CAPITAL RAISED WENT TO SUCH ESTABLISHED VENTURE CAPITAL CONCERNS AS KLEINER PERKINS CAUFIELD & BYERS SAN FRANCISCO MAYFIELD FUND MENLO PARK CALIF AND PRUDENTIAL EQUITY PARTNERS NEW YORK THAT'S A MUCH HIGHER PROPORTION THAN IN YEARS PAST HE SAYS BUT INSTITUTIONAL INVESTORS ALSO FINANCED FIVE FIRSTTIMERS BEHRMAN BROTHERS NEW YORK BLUE CHIP VENTURE PARTNERS CINCINNATI NORTHWEST OHIO VENTURE FUND TOLEDO TECHNOLOGY LEADERS MANAGEMENT RADNOR PA AND WESTON PRESIDIO CAPITAL WHICH HAS OFFICES IN BOSTON AND SAN FRANCISCO INVESTORS ARE LOOKING FOR NEW FUNDS WITH EXPERIENCED VENTURE CAPITALISTS SAYS MICHAEL F CRONIN MANAGING PARTNER OF WESTON PRESIDIO IN BOSTON AND THEY'RE MORE COMFORTABLE WITH FUNDS THAT PLAN TO BACK SOMEWHAT OLDER OPERATING COMPANIES RATHER THAN STARTUPS HE SAYS HIS FUND WHICH RAISED 81 MILLION IN 1992 IS INVESTING IN COMPANIES THAT ALREADY ARE OPERATIONAL WE DON'T BACK CONCEPTS WE BACK GOING BUSINESSES SAYS MR CRONIN WESTON PRESIDIO ALREADY HAS INVESTED IN THREE SMALL COMPANIES INCLUDING 15 MILLION IN WEISHEIMER COS A BLACKLICK OHIO OPERATOR OF PET FOOD STORES 15 MILLION IN COFFEE CONNECTION INC A COFFEE RETAILER IN BOSTON AND MORRIS AIR CORP A SALT LAKE CITY REGIONAL AIRLINE NORTHWEST OHIO VENTURE FUND AND BLUE CHIP VENTURE FUND BOTH PLAN TO FOCUS ON MIDWESTERN COMPANIES NORTHWEST A 15 MILLION FUND MADE ITS FIRST INVESTMENT LATE LAST YEAR IN A DISTRIBUTION STARTUP IN THE FOOD SERVICE INDUSTRY THE FUND SAYS THAT IT PLANS TO MAKE ABOUT FIVE INVESTMENTS OF ABOUT 1 MILLION EACH THIS YEAR BLUE CHIP IS MANAGING TWO SEPARATE FUNDS A 40 MILLION POOL THAT WILL FOCUS PRIMARILY ON MORE MATURE COMPANIES AND A 10 MILLION POOL TO BE INVESTED IN COMPANIES OWNED BY MINORITIES AND WOMEN THE SMALLER FUND AMONG THE FIRST MAINSTREAM FUNDS TO TARGET BOTH MINORITIES AND WOMEN WILL CONSIDER YOUNGER COMPANIES SAYS JACK WYANT THE FUND'S GENERAL PARTNER NEW REGISTRATION RULES MAKE FINANCING EASIER FOR SMALL COMPANIES THE SECURITIES AND EXCHANGE COMMISSION ADOPTED RULES IN AUGUST THAT STREAMLINE STOCK OFFERINGS BY SMALL COMPANIES THOSE RULES NOW ARE STARTING TO HAVE A BIG IMPACT SAYS CHET BORGIDA A PARTNER WITH GRANT THORNTON A NEW YORK ACCOUNTING FIRM THE SEC REPORTS THAT 92 COMPANIES RAISED 5949 MILLION BETWEEN THE TIME THE REGULATIONS TOOK EFFECT AND JAN 15 THAT'S MORE THAN TWICE THE 2956 MILLION RAISED BY 68 COMPANIES UNDER THE OLD REGULATIONS IN THE YEAREARLIER PERIOD THE COSTS OF SUCH FINANCINGS ALSO HAVE DROPPED MR BORGIDA NOTES A FULLFLEDGED OFFERING PREVIOUSLY COST AS MUCH AS 400000 UNDER THE NEW RULES HE SAYS THOSE COSTS HAVE FALLEN 30 TO 35 THE NEW RULES SIMPLIFY PUBLIC OFFERINGS FOR COMPANIES WITH ANNUAL REVENUE OF LESS THAN 25 MILLION AND MARKET VALUE BELOW 25 MILLION THESE FIRMS NEED ONLY ONE BALANCE SHEET AND TWO PROFITANDLOSS STATEMENTS COMPARED WITH TWO BALANCE SHEETS AND THREE FINANCIAL STATEMENTS UNDER A REGULAR OFFERING MOREOVER THE FINANCIAL DISCLOSURE REQUIRED ONLY MUST CONFORM TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES RATHER THAN THE MORE ONEROUS SEC RULES STILL THE RULES AFFECT RELATIVELY FEW COMPANIES CONTENDS JOSEPH BARTLETT A PARTNER WITH MAYER BROWN & PLATT IN NEW YORK THE REAL CHALLENGE IS TO MAKE PRIVATE PLACEMENTS MORE EFFICIENT THAT'S WHERE THE BULK OF THE FINANCING TAKES PLACE HE SAYS PRIVATE FINANCING FOR MOST SMALL COMPANIES REMAINS A HITORMISS PROPOSITION MOST SMALL COMPANIES CAN'T AFFORD INVESTMENT BANKERS AND HAVE A DIFFICULT TIME LOCATING CAPITAL ON THEIR OWN MR BARTLETT CONTINUES IF THE SEC REALLY WANTS TO HELP HE SAYS IT SHOULD CHARTER AN ORGANIZED AND REGULATED FINANCIAL 'DATING SERVICE' FOR SMALL COMPANIES MINORITY CONTRACTORS GET A BADLY NEEDED BOOST IN TWO STATES AMWEST SURETY INSURANCE CO PLANS TO PROVIDE UP TO 50 MILLION IN BONDING COMMITMENTS TO MINORITY CONTRACTORS IN NEW YORK AND NEW JERSEY THIS APPEARS TO BE THE FIRST PROGRAM OF ITS KIND THE WOODLAND HILLS CALIF INSURER SAYS THAT IT WILL STREAMLINE APPLICATION PROCEDURES AND REMOVE MINIMUM NET WORTH AND WORKINGCAPITAL REQUIREMENTS FOR MINORITY CONTRACTORS THAT NEED BONDING WITHOUT BONDING IT'S IMPOSSIBLE TO BID FOR MOST PUBLIC WORK SAYS TIMOTHY SHEEHAN EXECUTIVE DIRECTOR OF THE REGIONAL ALLIANCE FOR SMALL CONTRACTORS INC A NONPROFIT PARTNERSHIP THAT HELPS NEW YORK AND NEW JERSEY CONTRACTORS RECEIVE TRAINING AND FINANCING GETTING BONDING HAS BEEN THE PRIMARY OBSTACLE BLOCKING THE ENTRY OF MINORITIES INTO THE INDUSTRY MR SHEEHAN ADDS AMWEST'S COMMITMENT IS PART OF AN ALLIANCE PROGRAM THAT HAS PROVIDED MORE THAN 6 MILLION IN LOANS TO MEMBER CONTRACTORS AND OFFERED CLASSES TO MORE THAN 700 SMALL FIRMS SINCE 1989 VELDA SUE IS BEING REVIVED A BILL TO CREATE VELDA SUE THE ACRONYM FOR VENTURE ENHANCEMENT AND LOAN DEVELOPMENT ADMINISTRATION FOR SMALLER UNDERCAPITALIZED ENTERPRISES DIED IN THE LAST CONGRESS BECAUSE OF OPPOSITION FROM THE BUSH ADMINISTRATION BUT REP JOHN J LAFALCE A NEW YORK DEMOCRAT WHO HEADS THE HOUSE SMALL BUSINESS COMMITTEE REINTRODUCED THE PROPOSAL THIS WEEK THE BILL SEEKS THE CREATION OF A FEDERALLY CHARTERED CORPORATION THAT WOULD SUPPORT LOANS TO SMALL BUSINESSES IT ALSO WOULD HELP TO CREATE A SECONDARY MARKET FOR THESE LOANS HOUSE HEARINGS ON THE BILL BEGIN NEXT WEEK AND THE MEASURE'S CHANCES LOOK BETTER THAN IN THE PAST 9301290097 930129 WOMEN ROSE IN MANAGEMENT OVER DECADE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHILE THE PERCENTAGE OF WOMEN IN THE WORK FORCE CLIMBED ONLY TWO POINTS IN THE LAST DECADE THE NUMBER OF WOMEN IN MANAGERIAL POSITIONS JUMPED 95 ACCORDING TO A NEW CENSUS BUREAU REPORT THE FIGURES SEEM TO SUGGEST REAL PROGRESS IN THE CAREER ACHIEVEMENT OF WOMEN BUT EXPERTS SAY WOMEN ARE STILL HELD BACK BY THE GLASS CEILING AND FEW ARE MAKING IT TO THE TOP TIER IN THE CORPORATE US THE CENSUS BUREAU SAID IT COULDN'T BREAK OUT FIGURES FOR DIFFERENT MANAGERIAL POSITIONS AS A RESULT THE FIGURES LUMP TOGETHER SUCH DISPARATE JOBS AS CHIEF EXECUTIVE OF LARGE CORPORATIONS AND LOCAL RETAILSALES MANAGERS BUT EXPERTS SAID THE BULK OF GROWTH IN THE NUMBER OF WOMEN HOLDING MANAGERIAL PROFESSIONS PROBABLY WAS IN LOWERLEVEL SPOTS WOMEN ARE CERTAINLY MOVING UP THE LADDER IT WAS INEVITABLE GIVEN THE NUMBER ENTERING THE LABOR MARKET SAID GEORGE TUNICK PUBLISHER OF THE EXECUTIVE FEMALE MAGAZINE IN NEW YORK BUT THEY ARE NOT MAKING IT INTO THE TOP SENIORVICEPRESIDENT AND PRESIDENT LEVELS AND THEY ARE ONLY MAKING 75 CENTS ON THE DOLLAR A MAN MAKES THAT'S NOT PROGRESS THE REPORT SAID THAT 45 OF THE WORK FORCE IS FEMALE COMPARED WITH 43 IN 1980 WOMEN CONTINUE TO PREDOMINATE IN THE ADMINISTRATIVESUPPORT AND CLERICAL OCCUPATIONS WHILE THERE ARE MORE MEN IN CRAFTS REPAIR WORK AND LABOR AND MANAGERIAL SPOTS IT ALSO FOUND THAT THERE ARE MORE BLACK WOMEN THAN BLACK MEN IN THE CIVILIAN LABOR FORCE AMONG OTHER RACES AND HISPANICS MEN OUTNUMBER WOMEN IN THE WORK FORCE THE REPORT FOUND THAT SOME OCCUPATIONS GREW AT RATES THREE OR FOUR TIMES FASTER THAN THE NATION'S POPULATION DURING THE 1980S REFLECTING THE SHIFT OF THE US TO A SERVICEDRIVEN FROM A MANUFACTURINGDRIVEN ECONOMY THE NUMBER OF TECHNICIANS AND RELATED SUPPORT OCCUPATIONS GREW 43 EXECUTIVE ADMINISTRATIVE AND MANAGERIAL JOBS AS WELL AS SALES JOBS EACH GREW 41 BETWEEN 1980 AND 1990 THE US POPULATION GREW ONLY 10 JOHN PRIEBE ONE OF THE AUTHORS OF THE REPORT SAID THE NEW STUDY MOST LIKELY WILL SERVE AS AN AFFIRMATIVE ACTION TOOL FOR MANY EMPLOYERS THEY CAN SEE IF THEIR WORK FORCE COMPARES IN MAKEUP WITH THE COUNTY THEY ARE HIRING FROM MR PRIEBE SAID 9301290096 930129 WHO'S NEWS MARTIN MARIETTA CORP MARTIN MARIETTA CORP BETHESDA MD LAMAR ALEXANDER WAS ELECTED A DIRECTOR OF THIS AEROSPACE CONCERN INCREASING THE BOARD TO 15 MEMBERS MR ALEXANDER 52 YEARS OLD SERVED ON THE BOARD FROM 1989 UNTIL 1991 WHEN HE RESIGNED TO BECOME SECRETARY OF EDUCATION IN THE BUSH ADMINISTRATION 9301290095 930129 WHO'S NEWS FIRST INTERSTATE BANCORP FIRST INTERSTATE BANCORP LOS ANGELES MARY M GATES A MEMBER OF THE BOARD OF REGENTS OF THE UNIVERSITY OF WASHINGTON WAS ELECTED A DIRECTOR OF THIS COMMERCIAL BANKING COMPANY SHE FILLS A VACANCY CREATED BY THE RETIREMENT OF WARREN CHRISTOPHER WHO HAS BEEN NAMED US SECRETARY OF STATE 9301290094 930119 THE HARD TRUTH ABOUT SOFT MISSIONS' BY SETH CROPSEY AMONG MUCH ELSE AMERICAN AIR STRIKES IN IRAQ ARE A WELCOME REMINDER THAT EVEN AFTER THE COLD WAR THE ASSERTION OF AMERICAN POWER IN THE WORLD WILL REQUIRE A STRONG MILITARY CARRYING OUT ITS TRADITIONAL MILITARY MISSION THE REMINDER IS WELCOME BECAUSE SINCE THE PERSIAN GULF WAR TWO YEARS AGO A STEADY PROCESS OF REDEFINITION HAS BEEN UNDER WAY IT HAS BEEN ARGUED THAT WITH THE ABSENCE OF A SINGLE POWERFUL ENEMY THE MILITARY MUST BE MADE TO PERFORM NONTRADITIONAL FUNCTIONS THE MODEL FOR THIS NEW ROLE IS THE USLED EFFORT TO RESTORE ORDER IN SOMALIA IN THE STRICTEST SENSE OF COURSE THERE IS NO SUCH THING AS A PURELY MILITARY MISSION WHETHER THE IMMEDIATE AIM IS TO DEFEND AMERICAN LIFE AND PROPERTY AS IT WAS IN PANAMA OR TO PROTECT AMERICAN STRATEGIC INTERESTS AS IT WAS IN THE GULF WAR FORCE IS NO MORE OR LESS THAN ONE OF SEVERAL WAYS TO ACHIEVE POLITICAL OBJECTIVES BUT THE SOMALIA INTERVENTION IS DIFFERENT US MARINES THERE ARE PERFORMING AN ESSENTIALLY CONSTABULARY ROLE INSTEAD OF THE COMBAT MISSION THEY HAVE TRAINED FOR AND THIS NEW ROLE IS BEING USED TO CONFIRM THE NOTION THAT WITH THE DISAPPEARANCE OF THE SOVIET THREAT US FORCES MUST CHANGE THEMSELVES ESSENTIALLY IT'S HARD TO IMAGINE A WORSE IDEA AS IRAQ'S PROVOCATIONS SHOW THREATS TO AMERICAN POWER AND PRESTIGE DO NOT COME EXCLUSIVELY FROM A SINGLE MASSIVELY ARMED IDEOLOGICAL ENEMY THE WAR IN BOSNIA MAY SOON OFFER ANOTHER EXAMPLE IF THE US IS TO ACT DECISIVELY IN SUCH CIRCUMSTANCES IT WILL HAVE TO MAINTAIN ARMED FORCES WHOSE MISSION IS SINGLEMINDEDLY TRADITIONAL THIS MISSION IS COMBAT THE CURRENT THINKING IN WASHINGTON HOWEVER IS RUNNING STRONGLY THE OTHER WAY SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN ARGUED IN JUNE THAT THE US MILITARY HAS A PROPER AND IMPORTANT ROLE IN BATTLING SUCH DOMESTIC PROBLEMS AS DRUGS POVERTY URBAN DECAY LACK OF SELFESTEEM UNEMPLOYMENT AND RACISM OTHER EVENTS IN THE PAST FEW MONTHS HAVE ADDED WEIGHT TO THIS IDEA IN SEPTEMBER WHEN THE FEDERAL EMERGENCY MANAGEMENT AGENCY RESPONDED SLOWLY TO HURRICANE ANDREW'S DEVASTATION PRESIDENT BUSH ORDERED THE MILITARY IN TO CLEAN UP POLITICIANS ACROSS THE COUNTRY GOT THE MESSAGE IMMEDIATELY IF A HUGE EARTHQUAKE STRIKES CALIFORNIA DECLARED REP FORTNEY STARK D CALIF WE NEED SOMEONE LIKE STORMIN' NORMAN ON THE JOB NOT A BUREAUCRATIC RESPONSE WE NEED A STRIKE FORCE PACIFIC HURRICANE INIKI ADDED MORE EVIDENCE OF THE MILITARY'S ABILITY TO PROVIDE BADLY NEEDED SERVICES QUICKLY AND EFFICIENTLY EVEN AS THESE HUMANITARIAN EFFORTS WON PRAISE IT WAS UNCLEAR HOW THE MILITARY WOULD RESPOND TO ITS OWN REDEFINITION MR CLINTON'S NOMINEE TO HEAD THE DEFENSE DEPARTMENT LES ASPIN REMARKED IN THE FALL IF THE GENERALS AND ADMIRALS DON'T WANT THESE NEW MISSIONS NOTHING WE DO UP HERE WILL MEAN MUCH TODAY MR ASPIN'S UNCERTAINTY SEEMS WELL ON ITS WAY TO BEING DISPELLED AN ARTICLE BY A FIRST LIEUTENANT IN THE OCTOBER ISSUE OF THE MARINE CORPS' PROFESSIONAL JOURNAL THE GAZETTE PROPOSED THAT MARINES SERVE IN AMERICAN SLUMS AS ROLE MODELS WHO HOPEFULLY WOULD ALTER THE VIEWS OF SOME CITIZENS TOWARDS OUR GOVERNMENT THE AUTHOR WHO WAS IN LOS ANGELES DURING THE SPRING RIOTS SUGGESTED THAT A RIFLE SQUAD BE ASSIGNED TO EACH RESIDENTIAL BLOCK TO PROVIDE PHYSICAL SECURITY FOR LAWABIDING CITIZENS AND IT'S NOT JUST JUNIOR OFFICERS WHO FEEL THIS WAY LAST MONTH I MODERATED A PANEL AT THE NATIONAL DEFENSE UNIVERSITY IN WASHINGTON TITLED MILITARY SUPPORT OF CIVIL AUTHORITIES AT HOME AND ABROAD ON THE PANEL WERE SEVERAL ARMY MAJOR GENERALS A COAST GUARD ADMIRAL AND ONE CIVILIAN PENTAGON OFFICIAL PRECISE AND INFORMATIVE IN THEIR PRESENTATIONS EACH OF THEM EXPLAINED WHAT SORT OF NONCOMBAT SERVICES THE MILITARY ALREADY PERFORMS THE PENTAGON THEY NOTED HAS FOR YEARS GIVEN AWAY EXCESS NONLETHAL EQUIPMENT SUCH AS ELECTRICAL GENERATORS OR PUMPS TO NEEDY COUNTRIES AND THE MILITARY SERVICES HAVE PERFORMED A HOST OF NONCOMBAT ROLES ONE GENERAL LISTED THE MAJOR EMERGENCIES IN WHICH THE MILITARY HAS HELPED OUT IN RECENT YEARS INCLUDING THE LOMA PRIETA EARTHQUAKE IN 1989 AND THE EXXON OIL SPILL THE SAME YEAR THE POINT WAS CLEAR IF INADVERTENT EVER SENSITIVE TO THE POLITICAL WINDS THE US MILITARY LEADERSHIP IS NOW RECONSIDERING THE PURPOSE OF AMERICA'S ARMED FORCES NEVER MIND THAT THE MILITARY'S SENIOR RANKS HAVE LONG OPPOSED SUBSTANTIAL INVOLVEMENT IN SOFT MISSIONS SUCH MISSIONS SUDDENLY APPEAR AS CASH COWS TO OFFICERS WHO ARE ANXIOUS ABOUT BUDGET CUTS THEY ARE IN SHORT THE SORTS OF PROJECTS THAT WILL APPEAL TO POLITICIANS WHO SEE THEIR OWN DISTRICTS AS BENEFICIARIES THIS IS AN ALLTOOFAMILIAR WASHINGTON BARGAIN MOTIVATED BY PORKBARREL POLITICS MORE THAN NATIONAL NEED TO THE USUAL DAMS BRIDGES AND HIGHWAYS CONGRESSMEN COULD ADD MILITARY SERVICES AT SUPPOSEDLY NO EXTRA COST BUT OF COURSE THE COST WOULD BE REAL ENOUGH AMERICA'S DEFENSIVE ABILITIES WOULD ERODE AS THE MILITARY'S NEW ROLE FORCED IT TO DISPLACE COMBAT TRAINING WITH CLEANING UP TOXIC WASTE APPREHENDING DOPE DEALERS AND REBUILDING SOUTH CENTRAL LOS ANGELES THE SENIOR OFFICERS WHO ARE LEANING TOWARD THIS NONTRADITIONAL ROLE ARE UNCONVINCING WHEN THEY INSIST THAT IT WOULD NOT LESSEN THE MILITARY'S ABILITY TO FIGHT THE MILITARY'S HIERARCHICAL STRUCTURE WITH ITS SEVERE EXPECTATIONS OF OBEDIENCE AND ITS OFTCRITICIZED REDUNDANCY EXISTS BECAUSE IT IS ESSENTIAL TO FIGHTING AN ENEMY AND DEFEATING HIM IRONICALLY IT IS ALSO WHAT ALLOWS THE MILITARY TO PERFORM LESS DEMANDING HUMANITARIAN TASKS SO READILY BUT SUCH TASKS ARE LIKELY TO CONFUSE THE MILITARY ABOUT ITS FIRST RESPONSIBILITY THEY WOULD IMPAIR ITS ABILITY TO FIGHT AND DIMINISH ITS SECONDARY USEFULNESS AS A PROVIDER OF RELIEF A RECENT ARTICLE IN THE ARMY'S PROFESSIONAL JOURNAL PARAMETERS IMAGINES A DARK OUTCOME IF THE US CONTINUES TO SHIFT THE MILITARY AWAY FROM COMBAT THE ARTICLE IS CALLED PROVOCATIVELY THE ORIGINS OF THE AMERICAN MILITARY COUP OF 2012 ITS AUTHOR IS CHARLES J DUNLAP JR AN AIR FORCE LIEUTENANT COLONEL IN A LETTER LOOKING BACK TO 1992 HE DESCRIBES HOW AMERICANS EXASPERATED BY THEIR POLITICAL LEADERS' FAILURE TO ADDRESS DRUG USE CRIME THE FALLING STANDARDS OF TECHNICAL EDUCATION AND THE RISING COSTS OF HEALTH CARE TURNED INCREASINGLY TO THE MILITARY FOR HELP IN THE END A DECLAWED US MILITARY LOSES THE SECOND GULF WAR NEVERTHELESS AN ALLPOWERFUL CHAIRMAN OF THE JOINT CHIEFS HAS NO TROUBLE TAKING POWER WHEN THE PRESIDENT DIES IN OFFICE AS UNLIKELY AS THIS SCENARIO MAY BE THE ARTICLE'S POINT IS DEAD ON NOTHING GOOD WILL COME OF A MILITARY AS BEWILDERED ABOUT ITS PURPOSE AS THE NATION IT IS SUPPOSED TO DEFEND CONGRESS NEEDS TO MAKE SURE THAT BOTH THE MILITARY AND THE NEW ADMINISTRATION ARE CLEAR ABOUT THE PRIMARY MISSION OF THE US ARMED FORCES MR CROPSEY IS DIRECTOR OF THE ASIAN STUDIES CENTER AT THE HERITAGE FOUNDATION HE WAS DEPUTY UNDERSECRETARY OF THE NAVY IN THE REAGAN AND BUSH ADMINISTRATIONS SEE RELATED LETTER LETTERS TO THE EDITOR SOFT' MISSIONS DON'T DULL WARRIOR'S SWORD WSJ JAN 29 1992 9301190008 9301290093 930129 US INDICTMENTS IN PHARMOR CASE EXPECTED TODAY BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL INDICTMENTS AGAINST TOP FORMER PHARMOR INC EXECUTIVES ARE EXPECTED TO BE ANNOUNCED TODAY SIX MONTHS AFTER THE DISCOUNT DRUG STORE CHAIN REPORTED IT WAS THE VICTIM OF A 499 MILLION FRAUD PEOPLE CLOSE TO THE INVESTIGATION SAID THE INDICTMENTS BASED LARGELY ON INVESTIGATIONS BY THE FEDERAL BUREAU OF INVESTIGATION THE US ATTORNEY'S OFFICE IN CLEVELAND AND THE INTERNAL REVENUE SERVICE ARE EXPECTED AGAINST MICHAEL I MONUS PHARMOR'S COFOUNDER AND FORMER PRESIDENT AND PATRICK FINN FORMER CHIEF FINANCIAL OFFICER BOTH OF WHOM WERE FIRED ASSISTANT US ATTORNEY JOHN D SAMMON SAID THAT HIS OFFICE WAS PLANNING A NEWS CONFERENCE THIS AFTERNOON IN CLEVELAND TO ANNOUNCE A SIGNIFICANT DEVELOPMENT IN A MAJOR INVESTIGATION MR MONUS WHO MAINTAINED HIS INNOCENCE DURING AN INTERVIEW WITH THE WALL STREET JOURNAL LAST FALL HAD NO COMMENT HIS ATTORNEY'S OFFICE SAID MR FINN WHO COULDN'T BE REACHED FOR COMMENT HAS BEEN COOPERATING WITH FEDERAL INVESTIGATORS FOR MONTHS ACCORDING TO HIS ATTORNEY GERALD GOLD OF CLEVELAND PHARMOR FIRED THREE OTHERS FOLLOWING THE ALLEGED FRAUD INHOUSE ACCOUNTANTS JEFFREY WALLEY AND STANLEY CHERELSTEIN WHO PREVIOUSLY WORKED FOR PHARMOR'S OUTSIDE ACCOUNTANTS DELOITTE & TOUCHE AND JOEL ARNOLD SENIOR VICE PRESIDENT OF OPERATIONS CLOSELY HELD PHARMOR SAYS THE ALLEGED FRAUD WHICH BEGAN IN 1989 INVOLVED OVERSTATING INVENTORY KEEPING INVALID OR UNCOLLECTABLE ACCOUNTS RECEIVABLE ON THE BOOKS UNDERESTIMATING LIABILITIES AND OVERESTIMATING ASSETS THE COMPANY ALSO SAYS MR MONUS WITH MR FINN'S HELP DIVERTED AT LEAST 10 MILLION TO PROP UP HIS FAILING WORLD BASKETBALL LEAGUE A NOWDEFUNCT PROFESSIONAL ASSOCIATION FOR PLAYERS WITH A MAXIMUM HEIGHT OF 6 FEET 7 INCHES SINCE ITS FOUNDING IN 1982 THE COMPANY HAS ENJOYED SPECTACULAR GROWTH TO 3 BILLION IN SALES AND ABOUT 300 STORES SINCE FILING FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN AUGUST PHARMOR HAS CLOSED 54 STORES OBTAINED 150 MILLION IN DEBTORINPOSSESSION FINANCING AND RESTORED RELATIONS WITH TRADE SUPPLIERS LAST WEEK THE COMPANY ANNOUNCED 311 MILLION IN CHARGES RELATED TO LIABILITIES FROM CLOSING STORES AND FROM ACCOUNTING POLICIES AND INCREASED ITS INITIAL ESTIMATE OF THE FRAUD BY 149 MILLION TO 499 MILLION FORMER PHARMOR INC EMPLOYEES JEFFREY WALLEY AND STANLEY CHERELSTEIN PREVIOUSLY WORKED FOR COOPERS & LYBRAND AN ARTICLE FRIDAY INCORRECTLY SAID THEY PREVIOUSLY WORKED FOR DELOITTE & TOUCHE 9301290092 930129 MANAFORT PARTNER CLEARED OF CHARGES IN HUD AFFAIR WASHINGTON VICTOR CRUSE A BUSINESS PARTNER TO A PROMINENT WASHINGTON LOBBYIST WAS FOUND NOT GUILTY ON PERJURY AND OBSTRUCTIONOFJUSTICE CHARGES RELATING TO THE REAGANERA SCANDAL AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MR CRUSE WAS ACCUSED OF LYING TO A GRAND JURY ABOUT ALLEGED ATTEMPTS HE MADE TO BLOCK HUD SUBSIDIES TO A GEORGIA HOUSING PROJECT THE HOUSING PROJECT WAS BEING FINANCED BY A BANK THAT HAD REJECTED A LOAN APPLICATION FROM MR CRUSE'S COMPANY TO BUY THE DEVELOPMENT MR CRUSE WAS A PARTNER WITH PAUL MANAFORT IN CFM DEVELOPMENT CORP HARTFORD CONN MR MANAFORT ALSO IS A PARTNER AT BLACK MANAFORT STONE & KELLY OF ALEXANDRIA VA A LOBBYING FIRM WHOSE PARTNERS INCLUDE CHARLES BLACK A SENIOR ADVISER TO FORMER PRESIDENT BUSH'S REELECTION CAMPAIGN THE INDICTMENT SAID MR CRUSE TOLD OFFICIALS OF THE BANK HE WOULD USE A CONTACT AT BLACK MANAFORT TO STOP THE HUD FUNDING INDEPENDENT COUNSEL ARLIN ADAMS SAID THE VERDICT WOULD NOT AFFECT THE PENDING TRIAL OF DEBORAH GORE DEAN THE FORMER EXECUTIVE ASSISTANT TO FORMER HUD SECRETARY SAMUEL PIERCE OR THAT OF FORMER HUD ASSISTANT SECRETARY THOMAS DEMERY BOTH ARE CHARGED WITH CONSPIRACY TO DEFRAUD THE GOVERNMENT 9301290091 930129 WHO'S NEWS GOOD GUYS INC GOOD GUYS INC SAN FRANCISCO ROBERT A GUNST 44 YEARS OLD HAS BEEN NAMED CHIEF EXECUTIVE OFFICER IN ADDITION TO HIS CURRENT POSITION AS PRESIDENT AND CHIEF OPERATING OFFICER AT THIS CONSUMER ELECTRONICS RETAILER HE SUCCEEDS RONALD A UNKEFER 48 WHO FOUNDED THE COMPANY AND WILL REMAIN AS CHAIRMAN 9301290090 930129 WHO'S NEWS UNION PACIFIC CORP UNION PACIFIC CORP BETHLEHEM PA DICK CHENEY 51YEAROLD FORMER SECRETARY OF DEFENSE WAS NAMED A DIRECTOR AT THIS RAILROAD ENERGY REAL ESTATE AND HAZARDOUSWASTE MANAGEMENT CONCERN MR CHENEY SUCCEEDS A FORMER SECRETARY OF STATE HENRY KISSINGER 69 WHO RETIRED A COUPLE OF MONTHS AGO 9301290089 930129 CHRYSLER POSTS HIGHEST PROFIT IN 4 YEARS RAISES SOME CAR PRICES MORE THAN 100 BY DOUGLAS LAVIN AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP POSTED ITS BEST QUARTERLY EARNINGS PERFORMANCE IN FOUR YEARS AND FOLLOWED FORD MOTOR CO IN AN UNUSUAL MIDYEAR PRICE INCREASE THAT ADDED MORE THAN 100 TO THE BASE PRICE OF MANY POPULAR MODELS THE AUTO MAKER REPORTED NET INCOME OF 356 MILLION OR 112 A SHARE FOR THE FOURTH QUARTER COMPARED WITH 97 MILLION OR 33 CENTS A SHARE FOR THE YEAREARLIER PERIOD REVENUE ROSE 24 TO 102 BILLION FROM 82 BILLION THE RESULTS EXCEEDED ANALYSTS' HIGHEST FORECAST OF 324 MILLION OR 103 A SHARE AND MANY ON WALL STREET HAD EXPECTED LESS THAN THAT EVEN THOUGH CHRYSLER HAD SAID IN ITS RECENT PROSPECTUS FOR A PLANNED OFFERING OF 40 MILLION NEW COMMON SHARES THAT IT WOULD REPORT FOURTHQUARTER EARNINGS IN EXCESS OF 300 MILLION CHRYSLER'S EARNINGS FOR THE FULL YEAR ALSO WERE THE BEST SINCE 1988 A SHARP REBOUND FROM 1991'S DISMAL PERFORMANCE CHRYSLER REPORTED NET OF 723 MILLION OR 221 A SHARE FOR 1992 REVERSING A LOSS OF 795 MILLION OR 328 A SHARE FOR 1991 REVENUE ROSE 26 TO 369 BILLION FROM 294 BILLION THE TURNAROUND WAS AMPLIFIED BY ACCOUNTING CHANGES THE 1992 EARNINGS INCLUDE 218 MILLION FROM A FAVORABLE ACCOUNTING CHANGE ADOPTED IN THE FIRST QUARTER THE 1991 LOSS INCLUDED A ONETIME ACCOUNTING CHARGE OF 257 MILLION MITIGATED BY A FOURTHQUARTER 127 MILLION GAIN FROM THE SALE OF A STAKE IN THE DIAMONDSTAR MOTORS ASSEMBLY PLANT THAT SALE ENABLED CHRYSLER TO REPORT 1991 FOURTHQUARTER PROFIT OF 97 MILLION OR 33 CENTS A SHARE THANKS TO A STRONG LINEUP OF NEW AND PROFITABLE PRODUCTS AND A ROAD SHOW BY CHRYSLER EXECUTIVES TO PROMOTE THE STOCK OFFERING CHRYSLER'S STOCK HAS BEEN ON A ROLL IT ROSE 75 CENTS A SHARE TO 39875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK WAS AT 3625 WHEN THE STOCK OFFERING WAS ANNOUNCED JAN 11 CHRYSLER'S EARNINGS ARE IN MARKED CONTRAST TO EXPECTED FOURTHQUARTER PERFORMANCE OF GENERAL MOTORS CORP WHERE ANALYSTS' FORECASTS RANGE FROM A LOSS TO A SMALL PROFIT AND FORD WHICH HAS INDICATED IN A REGULATORY FILING THAT IT WILL REPORT A LOSS FOR THE QUARTER BUT CHRYSLER SOUNDED A NOTE OF CAUTION IN A JOINT STATEMENT FROM ITS CHAIRMAN AND ITS PRESIDENT ROBERT J EATON AND ROBERT A LUTZ THE ECONOMIC RECOVERY CONTINUES TO BE SLOW AND NEITHER OUR BALANCE SHEET NOR OUR CREDIT RATING ARE WHERE WE WANT THEM TO BE THE TWO SAID CHRYSLER'S CASH AND MARKETABLE SECURITIES ROSE TO 365 BILLION FOR THE YEAR COMPARED WITH 304 BILLION IN 1991 BUT THE AUTO MAKER'S DEBT IS RATED BELOW INVESTMENT GRADE AND IT HAS A 39 BILLION UNFUNDED PENSION LIABILITY CHRYSLER FINANCIAL CORP REPORTED EARNINGS OF 231 MILLION FOR 1992 COMPARED WITH 276 MILLION FOR 1991 IN THE FIRST QUARTER OF 1993 THE FINANCIAL UNIT IS EXPECTING A 22 BILLION GAIN FROM THE PREVIOUSLY ANNOUNCED SALE OF MOST OF ITS CHRYSLER FIRST UNIT'S FINANCING BUSINESS TO NATIONSBANK ALSO IN EARLY 1993 CHRYSLER WILL TAKE A 75 BILLION NONCASH CHARGE TO COVER A CHANGE IN ITS METHOD OF ACCOUNTING FOR RETIREE BENEFITS BECAUSE OF ITS SOLID 1992 PERFORMANCE CHRYSLER WILL PAY EACH OF ITS UNITED AUTO WORKERS EMPLOYEES AN AVERAGE OF 421 IN PROFIT SHARING UAW MEMBERS SAID THE OUTLAY WILL BE THE FIRST SINCE 1988 WHEN THE PAYMENTS AVERAGED 720 CHRYSLER'S RESULTS SHOW IT'S MAKING GOOD PRODUCTS SAYS RON GLANTZ AN ANALYST WITH DEAN WITTER IF YOU GIVE THE PEOPLE WHAT THEY WANT THEY'LL BUY IT AND LET YOU MAKE A BUCK HE SAID YOU DON'T HAVE TO BRIBE THEM TO BUY IT INDEED CHRYSLER SAID ITS INCENTIVES DECREASED THROUGHOUT THE YEAR ALTHOUGH THEY REMAINED JUST ABOVE 1000 A VEHICLE ON AVERAGE THE AUTO MAKER PAIRED YESTERDAY'S EARNINGS ANNOUNCEMENT WITH A PRICE INCREASE THE INCREASES ARE STEEPER WHEN COMPARED WITH THE PRICE IN EFFECT A YEAR AGO ON 1992 MODELS FOR EXAMPLE THE 1993 BASE PRICE OF A PLYMOUTH GRAND VOYAGER MINIVAN NOW STANDS AT 23910 A 994 INCREASE OVER ITS 1992 PRICE OF 22916 THE COMPANY ALSO RAISED DESTINATION CHARGES BY AN AVERAGE OF 25 A CAR THOSE CHARGES NOW RANGE FROM 430 TO 630 ALL BUYERS MUST PAY THE DESTINATION CHARGE BUT CHRYSLER DOESN'T INCLUDE IT IN THE ANNOUNCED BASE PRICE OF ITS VEHICLES THE PRICE INCREASES BY CHRYSLER AND FORD IN THE MIDDLE OF THE AUTO INDUSTRY'S MODEL YEAR COME AS THE COMPANIES ARE SEEKING HIGHER TARIFFS ON JAPANESE MINIVANS AND OTHER MEASURES FROM THE FLEDGLING CLINTON ADMINISTRATION TO DETER IMPORTS GM DIDN'T HAVE ANY IMMEDIATE COMMENT ON WHETHER IT WILL FOLLOW FORD AND CHRYSLER IN RAISING PRICES CHRYSLER CORP'S CHRYSLER FINANCIAL CORP IS EXPECTED TO RECEIVE 22 BILLION FROM THE PENDING SALE OF MOST OF ITS CHRYSLER FIRST UNIT'S FINANCING BUSINESS TO NATIONSBANK HOWEVER CHRYSLER FINANCIAL WON'T RECORD A GAIN AS REPORTED IN AN ARTICLE FRIDAY BECAUSE THE ASSETS ARE BEING SOLD AT BOOK VALUE 9301290088 930129 WHO'S NEWS LASMO PLC LASMO PLC LONDON THIS BRITISH OIL AND GAS COMPANY NAMED JOE DARBY CHIEF EXECUTIVE SUCCEEDING CHRIS GREENTREE WHO LASMO SAID IS LEAVING TO PURSUE OTHER INTERESTS MR DARBY A 14YEAR VETERAN OF THE COMPANY HAD BEEN ITS CHIEF OPERATING OFFICER MR GREENTREE HAS AGREED TO REMAIN AS AN ADVISER 9301290087 930129 WHO'S NEWS BOSTON EDISON CO BOSTON EDISON CO BOSTON E THOMAS BOULETTE FORMERLY VICE PRESIDENT NUCLEAR OPERATIONS WAS NAMED SENIOR VICE PRESIDENT NUCLEAR OF THIS ELECTRIC UTILITY HE SUCCEEDS ROY A ANDERSON WHO RESIGNED EDWARD S KRAFT FORMERLY MANAGER OF THE COMPANY'S PILGRIM NUCLEAR POWER PLANT WAS NAMED TO SUCCEED MR BOULETTE AS VICE PRESIDENT NUCLEAR OPERATIONS 9301290086 930129 WHO'S NEWS MEDSTAT SYSTEMS INC MEDSTAT SYSTEMS INC ANN ARBOR MICH J DENNIS BUSH 43 YEARS OLD AND DAVID J CHINSKY 38 WERE NAMED SENIOR VICE PRESIDENT AND VICE PRESIDENT RESPECTIVELY OF THIS PROVIDER OF COMPUTERIZED HEALTHCARE INFORMATION MR BUSH FILLS A POST CREATED AS PART OF HIS PROMOTION WITHIN THE COMPANY'S EMPLOYER SYSTEMS AND SERVICES UNIT MR CHINSKY WHO SUCCEEDS MR BUSH HAS HELD POSITIONS IN CLIENT SERVICE AND DEVELOPMENT 9301290085 930129 YOUR MONEY MATTERS WEEKEND REPORT REVOLUTIONARY PROXIES READ THEM AND REAP BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL DON'T BE TOO QUICK TO THROW OUT THE PROXY STATEMENTS THAT WILL BEGIN ARRIVING IN YOUR MAILBOX SOON AS COMPANIES PREPARE FOR THIS YEAR'S ROUND OF STOCKHOLDER MEETINGS THOSE LEGALISTIC JARGONFILLED PROXY STATEMENTS ARE UNDERGOING REVOLUTIONARY CHANGES AND THEY SHOULD BE MUST READING FOR INDIVIDUAL INVESTORS STOCK PROFESSIONALS SAY THIS YEAR CORPORATIONS ARE REQUIRED TO SPELL OUT IN MORE DETAIL THAN EVER BEFORE JUST HOW MUCH THEY PAY THEIR TOP FIVE EXECUTIVES IN SALARY STOCK GRANTS AND OPTIONS THE COMPENSATION COMMITTEE OF A COMPANY'S BOARD MUST GIVE A DETAILED SIGNED EXPLANATION WHY THOSE TOP EXECUTIVES GOT WHAT THEY DID THIS YEAR'S PROXY STATEMENTS MUST ALSO INCLUDE A PERFORMANCE GRAPH COMPARING A COMPANY'S FIVEYEAR TOTAL RETURN INCLUDING BOTH CHANGES IN THE COMPANY'S STOCK PRICE AND DIVIDENDS PAID OUT WITH THE PERFORMANCE OF A GROUP OF SIMILAR COMPANIES AND A BROAD MARKET INDEX SUCH AS STANDARD & POOR'S 500STOCK INDEX THE NEW PROXY STATEMENTS SHOULD BE OF INTEREST TO EVERY INVESTOR WHO CARES ABOUT HIS HOLDINGS SAYS HUGO QUACKENBUSH SENIOR VICE PRESIDENT OF DISCOUNT BROKERAGE FIRM CHARLES SCHWAB & CO IT'S A CHANCE FOR THE LITTLE GUY TO SEE WHAT ONLY THE BIG GUY COULD SEE IN THE PAST THE NEW DISCLOSURES ARE MANDATED BY SECURITIES AND EXCHANGE COMMISSION RULES ADOPTED LAST OCTOBER WHILE IT WAS TECHNICALLY POSSIBLE IN THE PAST TO DISCERN THIS INFORMATION PRACTICALLY SPEAKING IT WAS A DAUNTING TASK BEYOND THE CAPABILITY OF MOST INVESTORS IT WAS HOPELESS FOR LAYMEN OR PROFESSIONALS SAYS JOHN C BOGLE CHAIRMAN OF THE VANGUARD GROUP OF MUTUAL FUNDS INSTITUTIONAL INVESTORS LIKE STATE EMPLOYEE PENSION FUNDS HIRED FIRMS TO DO THE LABORIOUS ANALYSIS FOR THEM BUT IN THE NEW PROXIES INVESTORS WILL BE ABLE TO MAKE A QUICK COMPARISON OF WHAT THEIR COMPANY EXECUTIVES ARE BEING PAID AND HOW MUCH SHAREHOLDERS ARE RECEIVING BY FLIPPING TO A FEW CHARTS KEVIN J MURPHY A PROFESSOR AT HARVARD BUSINESS SCHOOL SAYS THAT IF INVESTORS SEE THEIR EXECUTIVES' SALARIES AND OTHER COMPENSATION GOING UP WHILE THE SHAREHOLDERS' TOTAL RETURN IS HEADING SOUTH IT SHOULD SET OFF ALARM BELLS PAUL MERSHON A RETIRED GEOLOGIST AND INVESTOR FROM SANTA BARBARA CALIF SAYS HE NEVER BEFORE READ THE PROXIES FOR THE 25 STOCKS HE OWNS BUT HE'S EAGERLY AWAITING THEM THIS YEAR IT'S AN AMAZING REVOLUTION SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS ADDS PEGGY SCHMELTZ A BOWLING GREEN OHIO INVESTOR WHO OWNS 108 STOCKS SOME CHIEF EXECUTIVE OFFICERS I KNOW WON'T LIKE IT BUT IT'S FANTASTIC FOR THE SHAREHOLDER HERE ARE SOME TIPS FOR READING THE NEW PROXY STATEMENTS BASED ON THE ADVICE OF INVESTMENT PROS COMPARE EXECUTIVES' PAY WITH SHAREHOLDERS' RETURN THE THING TO LOOK FOR IS THE DIRECTION OF EXECUTIVES' PAY VS THE DIRECTION OF THE STOCK'S PERFORMANCE SAYS GRAEF S CRYSTAL AN EXECUTIVE COMPENSATION SPECIALIST WHO PUBLISHES A MONTHLY NEWSLETTER THE CRYSTAL REPORT IF THE STOCK'S PERFORMANCE IS HEADING SOUTH BUT THE PAY IS TRENDING NORTH THE COMPANY ISN'T PLAYING THE GAME FAIRLY INVESTORS SHOULD TURN FIRST TO THE GRAPH IN THE PROXY THAT COMPARES PERFORMANCE OF THE COMPANY'S STOCK IN THE PAST FIVE YEARS WITH THE RETURN FROM A SIMILAR GROUP OF COMPANIES AND THE S&P 500 OR SOME OTHER BROAD EQUITY MARKET INDEX IF THE COMPANY ISN'T IN THE S&P 500 IT CAN SELECT ANOTHER INDEX OF COMPANIES THAT TRADE ON THE SAME EXCHANGE OR ON THE NASDAQ OVERTHECOUNTER MARKET THEN FLIP TO THE SUMMARY COMPENSATION TABLE THAT LISTS THE TOP FIVE EXECUTIVE OFFICERS' SALARY BONUS AND OTHER COMPENSATION SUCH AS STOCK OPTIONS AND RESTRICTIVE STOCK GRANTS OVER THE PAST THREE YEARS RISING EXECUTIVE COMPENSATION IN THE FACE OF SAGGING STOCK MARKET PERFORMANCE DOESN'T MEAN YOU SHOULD IMMEDIATELY SELL THE STOCK BUT IT SHOULD RAISE A RED FLAG SAYS JAMES HEARD PRESIDENT OF INSTITUTIONAL SHAREHOLDER SERVICES INC A WASHINGTON DC FIRM THAT ANALYZES 6000 PROXIES ANNUALLY FOR INSTITUTIONAL INVESTORS IF YOU SEE TRULY EXCESSIVE COMPENSATION GIVEN THE COMPANY'S PERFORMANCE YOU HAVE TO ASK THE QUESTION IS THE BOARD DOING ITS JOB MR HEARD SAYS WATCH HOW EXECUTIVES ARE BEING PAID THIS IS EVEN MORE IMPORTANT THAN HOW MUCH TOP EXECUTIVES ARE BEING PAID PROS SAY A RECENT STUDY OF THE 1000 LARGEST US COMPANIES BY PROF MURPHY SHOWED THAT COMPANIES THAT LINKED AN EXECUTIVE'S PAY TO STOCK PERFORMANCE CONSISTENTLY PERFORMED BETTER THAN COMPANIES THAT DIDN'T YET ONLY ONETHIRD OF COMPANY PAY PACKAGES LINK AN EXECUTIVE'S PAY TO STOCK PERFORMANCE PROF MURPHY SAYS SHAREHOLDERS SHOULD LOOK AT THIS WHEN THEY CHOOSE THEIR INVESTMENTS SAYS RALPH V WHITWORTH PRESIDENT OF UNITED SHAREHOLDERS ASSOCIATION WASHINGTON DC IT CAN DEFINITELY BE A STRONG INDICATOR OF WHAT A COMPANY WILL DO IN THE FUTURE YOU WANT MANAGEMENT REWARDS THAT ARE HIGHLY SENSITIVE TO THE STOCK PRICE CHECK THE COMPENSATION COMMITTEE'S STATEMENT THE COMMITTEE'S PAY PHILOSOPHY SHOULD SQUARE WITH HOW THE COMPANY'S EXECUTIVES ARE BEING REWARDED BOARDS ARE GOING TO HAVE TO TAKE THIS SECTION OF THE PROXY VERY SERIOUSLY SAYS PROF MURPHY THEY'RE GOING TO HAVE TO CAREFULLY CONSIDER WHAT MEASUREMENT CRITERIA THEY ARE USING FOR EVALUATING THE TOP EXECUTIVES DONALD YACKTMAN PRESIDENT OF YACKTMAN FUND A CHICAGO MUTUAL FUND THAT INVESTS IN UNDERVALUED STOCKS SAYS HE ISN'T AGAINST EXECUTIVES MAKING A LOT OF MONEY BUT THAT EXECUTIVE COMPENSATION OUGHT TO BE LOGICAL FIND OUT HOW MUCH COMPANY STOCK EXECUTIVES AND DIRECTORS OWN THE IDEA INVESTMENT PROS SAY IS TO JUDGE WHETHER EXECUTIVES ARE MERELY HIRED HANDS OR PEOPLE WHOSE FORTUNES ARE TIED TO THOSE OF THE SHAREHOLDERS RALPH L SEGER JR A BIRMINGHAM MICH INVESTMENT COUNSELOR SAYS HE IS A FIRM BELIEVER THAT THE EXECUTIVE WHO OWNS A BIG CHUNK OF THE COMPANY'S SHARES WILL DO BETTER THAN THE PROFESSIONAL MANAGER WHO DOESN'T HAVE HIS PERSONAL FORTUNE AT STAKE IF A CHIEF EXECUTIVE DOESN'T OWN A SIGNIFICANT NUMBER OF SHARES IN HIS OWN COMPANY MR SEGER WON'T BUY THE STOCK DIRECTORS SHOULD ALSO HAVE A STAKE IN THE COMPANYMORE THAN 100 SHARES MR SEGER SAYS IF THEY DON'T HOLD STOCK THEMSELVES THEY LACK MOTIVATION TO ACT IN SHAREHOLDERS' INTERESTS HE SAYS SOME OTHER QUESTIONS TO ASK ACCORDING TO MR SEGER IS THE BOARD MADE UP OF MANAGEMENT CRONIES THEY TEND TO RUBBERSTAMP MANAGEMENT DECISIONS WITHOUT QUESTION ARE THERE TOO MANY PUBLIC MEMBERS PRESIDENTS OF UNIVERSITIES AND CHARITABLE GROUPS WHO MAY BE HIGHLY REGARDED IN THE COMMUNITY BUT WHO DON'T KNOW ANYTHING ABOUT RUNNING THE BUSINESS BEWARE OF A CHANGE IN AUDITORS COMPANIES SOMETIMES CHANGE AUDITORS TO SAVE MONEY OR TO GET A FIRM WITH NEW EXPERTISE BUT IF A COMPANY CHANGES AUDITORS IN THE MIDDLE OF A CONTROVERSY WITH ITS OLD ACCOUNTING FIRM MR MARKESE SAYS HE FINDS IT DISTURBING SUCH A CHANGE COULD MEAN THAT THE OLD AUDITORS WON'T GO ALONG WITH SOME ATTEMPT TO MAKE EARNINGS LOOK BETTER THAN THEY ARE WATCH FOR RELATED TRANSACTIONS A SECTION TITLED RELATED TRANSACTIONS DETAILS TRANSACTIONS BY MANAGEMENT THAT ARE POSSIBLE CONFLICTS OF INTEREST AT SMALL COMPANIES THE CHIEF EXECUTIVE SOMETIMES OWNS REAL ESTATE THAT HE LEASES BACK TO THE COMPANY MR SEGER THE MICHIGAN INVESTMENT COUNSELOR SAYS THAT WHEN HE SPOTS SUCH A TRANSACTION IN A PROXY HE CALLS THE COMPANY TO FIND OUT WHAT GIVES TOO MANY OF THESE ACTIVITIES CAN INDICATE THAT A COMPANY IS BEING RUN AS A PERSONAL FIEFDOM HE SAYS BEWARE OF POISON PILLS ALTHOUGH THEY ARE WIDESPREAD ANTITAKEOVER PROVISIONS SUCH AS POISON PILLS REMAIN A RED FLAG FOR SHAREHOLDERS SAYS MR MARKESE SOME ANTITAKEOVER DEFENSES ARE REFERRED TO IN PROXY STATEMENTS AS SHAREHOLDERS' RIGHTS PLANS THESE DEFENSES ARE TRIGGERED BY THE PURCHASE OF A SET PERCENTAGE OF THE SHARES USUALLY 15 TO 30 BY AN OUTSIDE BIDDER ONCE THE PLAN IS ACTIVATED IT WILL OFFER ALL OTHER SHAREHOLDERS THE RIGHT TO PURCHASE ADDITIONAL SHARES AT A DISCOUNT DILUTING THE HOLDINGS OF THE OUTSIDE INVESTOR SUCH PROVISIONS ARE A NEGATIVE FOR SHAREHOLDERS BECAUSE YOU DON'T WANT MANAGEMENT ENTRENCHED BUT IN A SITUATION WHERE THEY MUST REMAIN COMPETITIVE SAYS MR MARKESE RISING EXECUTIVE COMPENSATION DESPITE LAGGING STOCKHOLDER RETURNS EXECUTIVE COMPENSATION ISN'T LINKED TO STOCKMARKET PERFORMANCE EXECUTIVES AND DIRECTORS OWN FEW SHARES OF COMPANY'S STOCK CHANGE IN OUTSIDE AUDITORS IS PROPOSED BECAUSE OF DISAGREEMENTS 9301290084 930129 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK LOUIS W SULLIVAN 59 YEARS OLD AND JOHN D MACOMBER 65 WERE NAMED DIRECTORS AT THIS PHARMACEUTICALS HEALTHCARE AND CONSUMER PRODUCTS CONCERN EFFECTIVE FEB 1 DR SULLIVAN IS PRESIDENT OF MOREHOUSE SCHOOL OF MEDICINE IN ATLANTA AND WAS SECRETARY OF HEALTH AND HUMAN SERVICES IN THE BUSH ADMINISTRATION MR MACOMBER IS FORMER CHAIRMAN AND PRESIDENT OF THE EXPORTIMPORT BANK OF THE US THEY INCREASE THE BOARD'S SIZE TO 13 9301290083 930129 ECONOMY ECONOMIC PACE GATHERED SPEED IN 4TH QUARTER GDP GROWTH ACCELERATED TO ANNUAL RATE OF 38 STRONGEST SINCE LATE '88 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE SUREST SIGN YET THAT THE ECONOMY HAS BROKEN OUT OF ITS STAGNATION THE COMMERCE DEPARTMENT SAID ECONOMIC GROWTH IN THE FOURTH QUARTER ACCELERATED TO AN ANNUAL RATE OF 38 THE GROWTH WAS THE STRONGEST SINCE THE FOURTH QUARTER OF 1988 AND WAS LED BY A CONSUMER BUYING BINGE FOR DURABLE AND NONDURABLE GOODS AS WELL AS NEW HOMES IN THE THIRD QUARTER GROSS DOMESTIC PRODUCT OR THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US GREW AT AN ANNUAL RATE OF 34 THE BACKTOBACK QUARTERS OF SOLID IF MODEST GROWTH ARE ENCOURAGING ANALYSTS SAID THE RECOVERY IS STILL SLUGGISH BY HISTORICAL STANDARDS BUT HAS GAINED SOME MOMENTUM SINCE THE MIDDLE OF LAST YEAR THE ECONOMY IS DOING MUCH BETTER SAID RICHARD RIPPE CHIEF ECONOMIST FOR PRUDENTIAL SECURITIES IN NEW YORK THE PROBLEM THOUGH IS THAT ECONOMIC GROWTH STILL HASN'T TRANSLATED INTO VERY MANY NEW JOBS THE LABOR DEPARTMENT SAID AMERICANS FILED 2000 MORE CLAIMS FOR INITIAL UNEMPLOYMENT BENEFITS IN THE WEEK ENDED JAN 16 THAN IN THE PREVIOUS WEEK PUSHING NEW CLAIMS TO 364000 IT WAS THE THIRD CONSECUTIVE WEEK IN WHICH NEW CLAIMS INCREASED THE LABOR MARKET DOESN'T SHOW PROMISE OF GETTING BETTER SOON EITHER A NUMBER OF CORPORATIONS SUCH AS SEARS ROEBUCK & CO RECENTLY HAVE ANNOUNCED LAYOFFS THE SHAKY LABOR MARKET CASTS A SHADOW ON THE PROSPECTS OF A CONTINUING SURGE IN CONSUMER SPENDING WHICH JUMPED AT AN ANNUAL RATE OF 43 IN THE FOURTH QUARTER THE OPTIMISM REVEALED IN RECENT SURVEYS OF CONSUMER ATTITUDES MAY PROVE FLEETING IF OVERALL LABORMARKET CONDITIONS REMAIN SUBDUED FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD THE JOINT ECONOMIC COMMITTEE WEDNESDAY AND YESTERDAY MR GREENSPAN SAID THE 38 GROWTH RATE IN THE FOURTH QUARTER WOULD BE DIFFICULT TO SUSTAIN TREASURY SECRETARY LLOYD BENTSEN EXPRESSED CAUTION AT THE ENCOURAGING GDP REPORT LET'S NOT FORGET THAT WE'VE SEEN GOOD ECONOMIC REPORTS TWICE BEFORE IN THIS RECESSION ONLY TO SEE THE ECONOMY FALL BACK AFTER THE ADMINISTRATION ASSURED US WE WERE ON THE ROAD TO RECOVERY HE SAID LET'S MAKE SURE THAT DOESN'T HAPPEN TO US RESIDENTIAL AND NONRESIDENTIAL INVESTMENT ALSO ADDED SUBSTANTIALLY TO FOURTHQUARTER GDP NOT ONLY AREN'T CONSUMERS SITTING ON THEIR HANDS BUT BUSINESSES AREN'T SITTING ON THEIR HANDS EITHER THEY ARE SPENDING ON PLANT AND EQUIPMENT SAID ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST CO IN CHICAGO DECREASES IN INVENTORY INVESTMENT GOVERNMENT PURCHASES AND NET EXPORTS WEIGHED THE ECONOMIC ACTIVITY DOWN IN THE FOURTH QUARTER THE COMMERCE DEPARTMENT SAID THE DECREASES IN INVENTORY IN THE FOURTH QUARTER MAY MEAN PICKUPS IN PRODUCTION IN THE COMING MONTHS BUT RISING PRODUCTION WILL MOST LIKELY MEAN MORE PRODUCTIVITY GAINS RATHER THAN LOTS OF NEW JOBS PRODUCTION WILL RISE EMPLOYMENT WILL RISE A LITTLE BIT BUT BUSINESSES WILL BE DOING EVERYTHING THEY CAN TO MAXIMIZE THE OUTPUT OF EACH WORKER SAID PRUDENTIAL'S MR RIPPE DESPITE THE INCREASED GROWTH INFLATION REMAINED UNDER CONTROL THE FIXEDWEIGHTED PRICE INDEX FOR GROSS DOMESTIC PURCHASES WHICH MEASURES PRICES PAID BY US RESIDENTS INCREASED AT A 28 ANNUAL RATE IN THE FOURTH QUARTER FOLLOWING THE 25 PACE OF THE THIRD QUARTER FOR THE YEAR ECONOMIC ACTIVITY INCREASED 21 AFTER FALLING 12 IN 1991 THE 1992 INCREASE WAS RELATIVELY MODEST FOR AN ECONOMIC RECOVERY SAID CAROL CARSON DIRECTOR OF THE COMMERCE DEPARTMENT'S BUREAU OF ECONOMIC ANALYSIS BUT IT WAS THE LARGEST ANNUAL INCREASE IN GDP SINCE 1989 THE AVERAGE ANNUAL RATE OF GROWTH DURING THE FIRST SEVEN QUARTERS OF THE PAST FIVE ECONOMIC RECOVERIES WAS 45 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS AND FOR INFLATION THE DEPARTMENT WILL REVISE ITS ESTIMATES IN A MONTH IN CURRENT DOLLARS THE GROSS DOMESTIC PRODUCT FOR ALL OF 1992 TOTALED 5946 TRILLION UP 47 FROM 1991 HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FOURTH QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1217 FROM 1212 IN THE PREVIOUS QUARTER 9301290082 930129 SYMBOLICS INC FILES FOR CHAPTER 11 SHIELD AS ITS MARKET FADES CONCORD MASS SYMBOLICS INC THE ONETIME LEADER IN ARTIFICIAL INTELLIGENCE THAT COLLAPSED WITH THAT BUSINESS FILED FOR CHAPTER 11 PROTECTION UNDER THE US BANKRUPTCY CODE THIS MONTH SYMBOLICS SAID IT WAS SEEKING FINANCING BUT MIGHT NEED BANKRUPTCYCOURT PROTECTION AT THE TIME IT DISCLOSED THAT REVENUE FOR ITS FISCAL SECOND QUARTER ENDED DEC 31 HAD DROPPED TO 33 MILLION FROM 75 MILLION A YEAR EARLIER AND THAT IT WOULD CUT ITS WORK FORCE BY 36 FROM 110 PEOPLE SYMBOLICS WAS ONCE A HIGHFLIER WITH SOARING GROWTH THAT BOOSTED SALES TO 1142 MILLION IN 1986 ON THE STRENGTH OF SPECIAL WORKSTATIONS DESIGNED FOR PROGRAMMING IN THE LISP LANGUAGE BUT SHORTLY AFTERWARD CORPORATE CUSTOMERS BECAME DISILLUSIONED WITH ARTIFICIAL INTELLIGENCE WHICH WAS MORE DIFFICULT TO IMPLEMENT THAN EXPECTED MOREOVER CUSTOMERS MOVED TO STANDARD COMPUTERS BECAUSE THEY WERE CHEAPER THAN THE PROPRIETARY SYSTEMS MADE BY SYMBOLICS DESPITE NUMEROUS REPOSITIONING EFFORTS SYMBOLICS WASN'T EVER ABLE TO SCALE BACK AND REFOCUS ITS BUSINESS SUCCESSFULLY IT CURRENTLY MAKES SOFTWARE AND PROVIDES CONSULTING SERVICES AND SAID IT PLANS TO CONTINUE OPERATING 9301290081 930129 BIG BOARD FINES BROKERAGE FIRMS FOR VIOLATIONS PRUDENTIAL PAINEWEBBER ARE CITED FOR DIVERTING MONEY FROM CUSTOMERS BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC AND PAINEWEBBER INC WERE FINED BY THE NEW YORK STOCK EXCHANGE FOR POCKETING MONEY THAT SHOULD HAVE GONE TO CUSTOMERS IN VARIOUS TENDER OFFERS DEBT CONVERSIONS AND EXERCISE OF RIGHTS AND WARRANTS THE TWO FIRMS WERE AMONG FOUR SECURITIES FIRMS AND SIX INDIVIDUALS DISCIPLINED BY THE BIG BOARD FOR VARIOUS VIOLATIONS OF SECURITIES LAWS AND EXCHANGE RULES PRUDENTIAL SECURITIES INC WAS FINED 100000 AND CENSURED IN CONNECTION WITH A PREVIOUSLY REPORTED CASE THE NEW YORKBASED FIRM A SUBSIDIARY OF PRUDENTIAL INSURANCE CO OF AMERICA WAS FOUND TO HAVE ALLOWED EMPLOYEES OF ITS CUSTODY AND EXCHANGE DEPARTMENT TO USE CUSTOMERS' SECURITIES TO MAKE PROFITS FROM THE TRANSACTIONS WITHOUT THE CONSENT OF THE CUSTOMERS THE TRANSACTIONS INVOLVED DEBT REDEMPTIONS THAT HAD STOCKCONVERSION OPTIONS TENDER OFFERS FOR SHARES AND EXERCISE OF RIGHTS AND WARRANTS THAT WERE ABOUT TO EXPIRE AND FOR WHICH THE STOCK PRICE WAS HIGHER THAN THE EXERCISE PRICE IN NOVEMBER PRUDENTIAL REPAID CUSTOMERS ABOUT 4 MILLION WHICH INCLUDED 3 MILLION IN PROFIT GENERATED BY THE IMPROPER TRADES AND 1 MILLION IN INTEREST AFTER IT DISCOVERED THE SCHEME AND REPORTED IT TO THE EXCHANGE MICHAEL PAUL LAUCELLA WHO WAS THE MANAGER OF PRUDENTIAL'S CUSTODY AND EXCHANGE DEPARTMENT UNTIL MAY 1990 WHEN HE WAS FIRED WAS PERMANENTLY BARRED LAST YEAR AFTER THE BIG BOARD FOUND HE HAD SUPERVISED THE SCHEME MR LAUCELLA OF MERRICK NY NEITHER ADMITTED NOR DENIED THE CHARGES IN CONSENTING TO THE FINDINGS THE EXCHANGE ALSO SAID PRUDENTIAL KEPT INACCURATE RECORDS OF THE TRANSACTIONS FILED INACCURATE REPORTS WITH THE EXCHANGE AND FAILED TO ADEQUATELY SUPERVISE THE DEPARTMENT PRUDENTIAL IN CONSENTING TO THE FINE AND CENSURE NEITHER ADMITTED NOR DENIED THE CHARGES IT AGREED TO HAVE AN INDEPENDENT AUDITOR CONDUCT CERTAIN PROCEDURES INCLUDING TEST CHECKS OF ITS DISTRIBUTIONS OF FUNDS OBTAINED FROM OVERTENDERING OVERCONVERSION AND OVEREXERCISING PAINEWEBBER INC A UNIT OF PAINEWEBBER GROUP INC NEW YORK WAS SIMILARLY FINED 65000 AND CENSURED FOR IMPROPER CONVERSIONS OF CUSTOMER SECURITIES AND EXERCISES OF RIGHTS AND WARRANTS THE BIG BOARD PANEL FOUND THAT IT HAD MADE MORE THAN 650000 IN PROFITS FROM THE OVERCONVERSIONS AND OVEREXERCISES PAINEWEBBER WITHOUT ADMITTING OR DENYING THE CHARGES ALSO CONSENTED TO CONDUCT AN INTERNAL REVIEW TO VERIFY THE AMOUNT OF PROFITS AND DISGORGE THEM A SPOKESWOMAN FOR PAINEWEBBER SAID THE PROBLEMS OCCURRED FROM 1985 TO 1988 SHE SAID THE FIRM VOLUNTARILY MADE ALL CLIENTS WHOLE AND VOLUNTARILY IMPLEMENTED NEW PROCEDURES TO AVOID A RECURRENCE OF THESE PROBLEMS BALIS & ZORN A NEW YORK BROKERAGE HOUSE WAS FINED 25000 AND CENSURED IT CONSENTED TO FINDINGS THAT IT DID BUSINESS WHILE ITS NET CAPITAL WAS BELOW MINIMUM REQUIRED LEVELS AND ALLOWED IMPROPER OR UNAUTHORIZED ACCOUNTS A SPOKESMAN SAID THE FIRM DECLINED TO COMMENT JJC SECURITIES NEW YORK A FORMER BIG BOARD MEMBER FIRM WHICH IS UNRELATED TO JJC SPECIALIST CORP A SUBSIDIARY OF QUICK & REILLY CORP WAS FINED 10000 AND CENSURED IT NEITHER ADMITTED NOR DENIED FINDINGS THAT IT DID BUSINESS WHILE ITS NET CAPITAL WAS BELOW MINIMUM DANIEL CUNNINGHAM JJC SECURITIES' FORMER CHIEF EXECUTIVE CONSENTED TO SIMILAR FINDINGS MR CUNNINGHAM OF MIDDLETOWN NJ WAS FINED 5000 AND CENSURED MR CUNNINGHAM COULDN'T IMMEDIATELY BE REACHED FOR COMMENT FIVE OTHER INDIVIDUALS WERE DISCIPLINED IN UNRELATED CASES THEY EITHER HAD NO COMMENT OR COULDN'T BE REACHED ANTHONY ROBERT ZIGO NEW YORK A TRADINGFLOOR BROKER CONSENTED TO FINDINGS THAT HE FAILED TO PROPERLY REPORT SOME TRANSACTIONS MADE ON THE EXCHANGE FLOOR HE WAS FINED 5000 CENSURED AND SUSPENDED FOR TWO WEEKS ROBERT MICHAEL SIMPSON MERRITT ISLAND FLA AND ALLAN GERALD RUBIN LAUDERHILL FLA WERE CITED FOR SALES PRACTICE VIOLATIONS MAINLY UNAUTHORIZED OR UNSUITABLE TRADES IN CUSTOMER ACCOUNTS MR SIMPSON WAS BARRED FOR 10 YEARS MR RUBIN WAS BARRED FOR THREE MONTHS AND CENSURED THOMAS F SCHOLL III LOCUST VALLEY NY A FORMER INDEPENDENT FLOOR BROKER CONSENTED TO FINDINGS THAT HE FAILED TO KEEP ADEQUATE RECORDS OF TRANSACTIONS HE WAS FINED 5000 CENSURED AND MUST MEET SPECIAL RECORDKEEPING REQUIREMENTS LAWRENCE E BUBLA MASPETH NY A FORMER BROKER CONSENTED TO FINDINGS THAT HE MISAPPROPRIATED CUSTOMER FUNDS HE WAS PERMANENTLY BARRED FROM ASSOCIATION WITH ANY BIG BOARD MEMBER FIRM AND CENSURED 9301290080 930129 GIMMICK OF REFINANCING US DEBT BY BRUCE BARTLETT THE ECONOMIC TYPES AROUND PRESIDENT CLINTON ARE PROPOSING AN AMAZING FREE LUNCH IT IS POSSIBLE THEY ARGUE TO REDUCE THE BUDGET DEFICIT AND STIMULATE THE ECONOMY AT THE SAME TIME SIMPLY BY CHANGING THE WAY THE TREASURY DEPARTMENT FINANCES THE NATIONAL DEBT THE PROPOSAL THAT THE GOVERNMENT CUT BACK ON LONGTERM BORROWINGS AND MOVE INTO SHORTERTERM SECURITIES WAS ENDORSED BY PRESIDENT CLINTON DURING THE CAMPAIGN MORE RECENTLY LAURA TYSON THE NEWLY APPOINTED CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS HAS BACKED IT AS HAS THE DEMOCRATIC STUDY GROUP DSG IN CONGRESS WHICH JUST ISSUED A PAPER ON THE SUBJECT AT PRESENT THE TREASURY FUNDS THE NATIONAL DEBT THROUGH A MIX OF SECURITIES BILLS WITH VERY SHORT MATURITIES LESS THAN ONE YEAR NOTES WITH MEDIUM MATURITIES TWO TO 10 YEARS AND BONDS WITH LONG MATURITIES 10 TO 30 YEARS AS OF SEPT 30 1992 342 OF THE PRIVATELY HELD PUBLIC DEBT OUTSTANDING MATURES IN LESS THAN ONE YEAR 366 MATURES IN ONE TO FIVE YEARS 125 MATURES IN FIVE TO 10 YEARS AND 166 MATURES IN 10 YEARS OR MORE THE DSG PROPOSAL CRITICIZES CURRENT TREASURY PRACTICE ON THE GROUND THAT INTEREST RATES ON LONGTERM SECURITIES ARE VERY HIGH COMPARED WITH THOSE ON SHORTTERM SECURITIES THE YIELD IS ABOUT 3 ON THREEMONTH TREASURY BILLS FOR EXAMPLE BUT CLOSE TO 725 ON 30YEAR TREASURY BONDS CONSEQUENTLY IT IS ARGUED THE FEDERAL GOVERNMENT COULD SAVE BILLIONS OF DOLLARS BY FINANCING ITS DEBT THROUGH SHORTTERM SECURITIES RATHER THAN LONGTERM BONDS THE DSG REPORT ESTIMATES THAT IF INTEREST RATES REMAIN UNCHANGED FROM CURRENT LEVELS THE GOVERNMENT WOULD ACHIEVE A SAVING OF 278 BILLION OVER TWO YEARS BY SELLING ONLY THREEMONTH BILLS AND NO NOTES OR BONDS THERE MAY WELL BE SOME MERIT IN SHIFTING A PORTION OF TREASURY BORROWING TOWARD SHORTERTERM SECURITIES THE BUSH TREASURY IN FACT MADE A MOVE IN THAT DIRECTION BUT ANY EFFORT TO DO ALL OR NEARLY ALL OF TREASURY BORROWING THROUGH THREEMONTH BILLS WOULD BE HIGHLY DISRUPTIVE TO FINANCIAL MARKETS AND PROBABLY COST THE GOVERNMENT MORE IN THE LONG RUN FOR ONE THING SHORTTERM RATES WOULD RISE FOR SUPPLYANDDEMAND REASONS WHEN THE GOVERNMENT FLOODS THE MARKET WITH SHORTERTERM INSTRUMENTS IT HAS TO OFFER THE BUYER A MORE ATTRACTIVE PRODUCT HIGHER RATES WOULD IN TURN REDUCE THE GOVERNMENT'S SAVINGS THIS SHIFT TO SHORTERTERM BORROWING WOULD ALSO CREATE HARDSHIP FOR INSURANCE COMPANIES PENSION FUNDS AND OTHER ENTITIES THAT NEED TREASURY SECURITIES OF VARIOUS MATURITIES TO MATCH THEIR ASSETS AND LIABILITIES FOR THEM THERE IS NO ADEQUATE PRIVATESECTOR ALTERNATIVE MOST IMPORTANT THOUGH INTEREST RATES CANNOT BE ASSUMED TO REMAIN AT TODAY'S RELATIVELY LOW LEVEL IN 1981 YIELDS ON THE TREASURY'S 30YEAR BOND ROSE TO MORE THAN 14 JUST A FEW YEARS EARLIER THEY HAD BEEN IN THE 7 RANGE AS THEY ARE TODAY HAD THE TREASURY FUNDED ALL ITS DEBT AT THE SHORT END IN THE 1970S IT WOULD HAVE PAID A HORRENDOUS PRICE WHEN THE GENERAL LEVEL OF INTEREST RATES ROSE SHARPLY IN THE EARLY 1980S LARGELY BECAUSE A LARGE PORTION OF THE DEBT WAS FUNDED THROUGH LONGERTERM SECURITIES THE BURDEN OF INTEREST PAYMENTS WAS HELD DOWN THE ASSUMPTIONS BEHIND SUCH PROPOSALS HAVE ADDITIONAL PROBLEMS IT IS RISKY TO ASSUME AS THE DSG REPORT DOES THAT THE NORMAL YIELD CURVE SLOPES UPWARD IE HIGHER RATES ON LONGERTERM SECURITIES AS SIDNEY HOMER NOTES IN HIS HISTORY OF INTEREST RATES THROUGHOUT THE ENTIRE 19TH CENTURY AND UP UNTIL 1930 THE NORMAL YIELD CURVE SLOPED DOWNWARD WITH HIGHER RATES ON SHORTTERM SECURITIES AND LOWER RATES ON LONGTERM AND THIS SITUATION IS NOT UNPRECEDENTED IN RECENT YEARS AS WELL ASK GERMANY WHICH CURRENTLY HAS AN INVERTED YIELD CURVE IN SHORT TODAY'S 725 30YEAR BOND MAY APPEAR TO BE A BARGAIN IN A FEW YEARS IF INTEREST RATES RISE ONCE AGAIN CERTAINLY THE HOMEOWNERS WHO ARE REFINANCING 30YEAR MORTGAGES BELIEVE THIS TO BE THE CASE DESPITE THE FACT THAT INTEREST RATES ON ADJUSTABLERATE MORTGAGES ARMS ARE SEVERAL PERCENTAGE POINTS LOWER THAN ON FIXEDRATE MORTGAGES MOST PEOPLE STILL PREFER THE LATTER THE REASON IS SIMPLE ALTHOUGH THEY PAY MORE IN THE SHORTRUN MOST PEOPLE BELIEVE THAT THE RISK IS LARGELY ON THE UPSIDE THUS THEY PREFER TO LOCK IN TODAY'S INTEREST RATES EVEN WHEN CHEAPER ARMS ARE AVAILABLE THE SAME IS TRUE OF THE FEDERAL GOVERNMENT ALTHOUGH A HIGHER SHORTTERM COST MAY BE PAID FOR FINANCING ACROSS ALL MATURITIES THE TREASURY HAS CONSISTENTLY MAINTAINED THAT IN THE LONG RUN THIS LOWERS THE OVERALL COST OF FINANCING THE DEBT WERE IT JUST AN ISSUE OF SAVING INTEREST ON THE PUBLIC DEBT NOTHING MORE WOULD HAVE TO BE SAID HOWEVER THE AUTHORS OF THE DSG PAPER AND OTHER REFINANCING ADVOCATES GO ON TO ARGUE THAT SHIFTING TREASURY FINANCING TOWARD SHORTERTERM SECURITIES WOULD LOWER LONGTERM INTEREST RATES THROUGHOUT THE ECONOMY THEY ARGUE THAT EVEN IF SHORTTERM RATES INCREASED THE POLICY WOULD BE STIMULATIVE BECAUSE LONGTERM RATES ARE SAID TO BE MORE IMPORTANT FOR INVESTMENT THE DSG CITES THE RESULTS OF A STUDY BY BENJAMIN FRIEDMAN OF HARVARD INDICATING THAT SUCH A SHIFT IN TREASURY BORROWING WOULD LOWER LONGTERM INTEREST RATES AND INCREASE REAL GROSS DOMESTIC PRODUCT AND REAL INVESTMENT SPENDING HOWEVER IN THE STUDY LONGTERM TREASURY RATES FALL LESS THAN SHORTTERM TREASURY RATES RISE AND PRIVATESECTOR INTEREST RATES ON CORPORATE BONDS FALL MUCH LESS THAN RATES ON TREASURY SECURITIES LOWERING THE RATE ON TREASURY SECURITIES DOESN'T NECESSARILY MEAN OTHER RATES WILL FALL AS WELL IN PROF FRIEDMAN'S SIMULATION WHICH IS BASED LARGELY ON DATA FROM THE 1970S ALL OTHER THINGS ARE EQUAL ESPECIALLY MONETARY POLICY THE STUDY ALSO ASSUMES THAT INTEREST RATES ARE SET ALMOST ENTIRELY BY SUPPLY AND DEMAND WHEREAS MOST ECONOMISTS BELIEVE THAT INFLATIONARY EXPECTATIONS ARE THE KEY ELEMENT IN THE DETERMINATION OF LONGTERM RATES IN FACT WHAT THE YIELD CURVE REALLY MEASURES IS INFLATIONARY EXPECTATIONS PROF FRIEDMAN'S ANALYSIS IS AT ODDS WITH THE EXPERIENCE OF THE 1960S BACK THEN SOME READERS MAY RECALL THE FEDERAL RESERVE PURSUED A POLICY OF TWISTING THE YIELD CURVE OPERATION TWIST CAME ABOUT DURING THE KENNEDY ADMINISTRATION WHEN THE ADMINISTRATION PRESSURED THE FED TO ABANDON ITS POLICY OF CONDUCTING MONETARY POLICY THROUGH THE PURCHASE AND SALE OF TREASURY BILLS ONLY THE ADMINISTRATION'S GOAL WAS TO RAISE SHORTTERM INTEREST RATES IN ORDER TO MAINTAIN THE EXCHANGE VALUE OF THE DOLLAR AND SIMULTANEOUSLY TO LOWER LONGTERM RATES IN ORDER TO STIMULATE DOMESTIC INVESTMENT THIS WAS TO BE ACCOMPLISHED BY HAVING THE FED BUY FEWER SHORTTERM SECURITIES AND MORE LONGTERM SECURITIES WITH THE GOAL OF TWISTING OR FLATTENING THE YIELD CURVE EXACTLY WHAT THE REFINANCERS PROPOSE TODAY TO BE SURE OPERATION TWIST WAS NEVER CARRIED OUT WITH ANY VIGOR BY THE FED INDEED THE FED'S HOLDING OF LONGTERM TREASURY SECURITIES INCREASED ONLY VERY MODESTLY IN THE EARLY 1960S THE TREASURY FOR ITS PART FAILED TO COOPERATE CONTINUING TO ISSUE LARGE AMOUNTS OF LONGTERM SECURITIES AND NEGATING THE FED'S ACTIONS NEVERTHELESS THERE WERE A NUMBER OF STUDIES OF OPERATION TWIST ALL OF WHICH CONCLUDED THAT THE POLICY HAD NO EFFECT ON THE RATE STRUCTURE WHATSOEVER MANY OF THE CRITICISMS ARE RELEVANT TO THE DSG PROPOSAL IF ARBITRAGERS KNOW WHAT THE GOVERNMENT IS TRYING TO ACCOMPLISH THEY CAN EASILY FRUSTRATE IT BY DOING THE REVERSE BORROWING LONG SELLING BONDS AND LENDING SHORT BUYING BILLS BECAUSE INVENTORIES AND CONSUMER DURABLES ARE COMMONLY FINANCED WITH SHORTTERM BORROWING ANY RISE IN SHORTTERM INTEREST RATES EVEN IF OFFSET BY A DECLINE IN LONGTERM RATES WILL TEND TO CAUSE CONSUMERS TO DEFER MAJOR PURCHASES AND FIRMS TO CUT BACK ON INVENTORY INVESTMENT THIS WILL CAUSE GROWTH TO DECLINE AT LEAST IN THE SHORTTERM OTHER WORK SHOWS THAT ANY ATTEMPTS TO MANIPULATE THE YIELD CURVE ARE FRUITLESS FOR ANOTHER REASON LONG AND SHORTTERM INTEREST RATES TEND TO RISE AND FALL TOGETHER OVER TIME SEE ACCOMPANYING ILLUSTRATION WSJ JAN 29 1993 THE SAME FORCES THAT LARGELY DETERMINE THE LEVEL OF INTEREST RATES THE RATE OF RETURN ON CAPITAL THE SUPPLY OF PRIVATE SAVING THE OVERALL LEVEL OF GOVERNMENT BORROWING ETC AFFECT ALL PARTS OF THE MATURITY SPECTRUM ANY NEW OPERATION TWIST WOULD REQUIRE CONCERTED ACTION BY BOTH THE TREASURY AND THE FED TO ACHIEVE SUCCESS HOWEVER GIVEN THE INDEPENDENCE OF THE FED SUCH COOPERATION IS DIFFICULT TO ENSURE IT IS A PIPE DREAM TO THINK THAT WE CAN COSTLESSLY STIMULATE THE ECONOMY AND LOWER THE GOVERNMENT'S INTEREST COST SIMULTANEOUSLY SIMPLY BY ALTERING THE TREASURY'S FINANCING METHODS IF SUCH A POLICY IS TO BE PURSUED IT SHOULD BE PURSUED MODESTLY MR BARTLETT RECENTLY DEPARTED FROM THE POST OF DEPUTY ASSISTANT SECRETARY AT THE TREASURY DEPARTMENT 9301290079 930129 WORLD MARKETS TOKYO STOCKS SURGE 34 ON GOVERNMENT BUYING AND INVESTORS' BELIEF A RATE CUT IS IMMINENT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES IN TOKYO JUMPED 34 THURSDAY AND TRADERS ATTRIBUTED THE RISE TO A BUYING BINGE BY THE GOVERNMENT AND FAITH AMONG INVESTORS THAT JAPAN'S CENTRAL BANK IS ABOUT TO CUT ITS OFFICIAL DISCOUNT RATE TO SPUR THE ECONOMY BUT THE TRADERS ALSO WERE QUICK TO CAUTION THAT APART FROM SPECULATION ABOUT THE DISCOUNT RATE THERE WASN'T ANY NEW POSITIVE ECONOMIC NEWS TO SUPPORT THE THURSDAY RALLY AND IT MAY LOSE STEAM QUICKLY INDEED THE CUT IN THE DISCOUNT RATE HAS BEEN EXPECTED FOR SOME TIME WHAT'S MORE WHEN THE RALLY GOT STARTED IT WAS BOOSTED LESS BY NEWLY BULLISH INVESTORS THAN BY PANICKY SHORTSELLERS COVERING THEIR POSITIONS A SHORTSELLER BORROWS STOCK AND HOPES TO PROFIT BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK THE NIKKEI 225STOCK INDEX WHICH ROSE 1705 POINTS WEDNESDAY CLOSED AT 1706341 UP 55373 THE STRONGEST RALLY IN TWO MONTHS THE AVERAGE HAS GAINED 776 POINTS SINCE MONDAY'S CLOSE ON FRIDAY THE NIKKEI INDEX ROSE 1746 POINTS TO CLOSE THE MORNING SESSION AT 1708087 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 2208 MILLION SHARES ON WEDNESDAY AND MARKING THE FIRST TIME SINCE DEC 18 THAT DAILY TURNOVER REACHED 300 MILLION SHARES THERE WERE 862 ADVANCES AND 123 DECLINES THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES JUMPED 3177 POINTS OR 25 TO 129187 THERE'S A LARGE EXPECTATION OF AN INTERESTRATE CUT AND MEASURES TO SUPPORT THE MARKET BY THE GOVERNMENT SAID SHIGERU AKIBA HEAD OF YEN EQUITY TRADING AT UBS PHILIPS & DREW INTERNATIONAL LTD THE OFFICIAL DISCOUNT RATE WHICH IS THE RATE THE CENTRAL BANK CHARGES BANKS FOR FUNDS NOW IS 325 MR AKIBA ALSO SAID THE MARKET WAS ABUZZ WITH TALK THAT JAPANESE LIFE INSURERS AND PENSION FUNDS BOUGHT STOCKS LATE THURSDAY UNDER PRESSURE FROM THE MINISTRY OF FINANCE THE GOVERNMENT HAS PUBLICLY DENIED IT HAS A POLICY OF BOOSTING STOCK PRICES THOUGH IN PRIVATE SOME OFFICIALS CONCEDE THEY HAVE BEEN SUPPORTING THE MARKET FOR MONTHS MR AKIBA SAID INVESTORS WOULDN'T MOVE WITHOUT AN INDICATION THAT LOWER INTEREST RATES WOULD BE REALIZED SOON THERE ARE NO FACTS OR NEWS TO PUSH UP THE MARKET THE MARKET FEELS THE CENTRAL BANK IS READY TO CUT SOON SAID YASUFUMI OHIGASHI DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NOMURA SECURITIES CO HE SAID THE NIKKEI MIGHT TRY FOR 17500 NEXT WEEK BUT IT'S STILL BASICALLY IN A BOX WITH 1000POINT MOVEMENTS ABOVE AND BELOW A MIDPOINT OF 17000 FORESEEABLE THROUGH THE END OF MARCH TRADERS SAID MONEY WAS FLOWING INTO THE MARKET FROM GOVERNMENT PENSION FUNDS ALONG WITH CASH FROM JAPANESE FINANCIAL INSTITUTIONS SOME TRADERS SAID THE LATTER WAS DONE UNDER GOVERNMENT PRESSURE JAPAN'S FINANCE MINISTRY IS KEEN TO HAVE THE NIKKEI STAY ABOVE 16000 AT LEAST THROUGH MARCH 31 WHEN MOST JAPANESE COMPANIES CLOSE THEIR BOOKS FOR THE FISCAL YEAR MANY CORPORATIONS OWN STOCKS AND WILL HAVE TO REPORT STOCKVALUATION LOSSES IF PRICES FALL SHARPLY AROUND THE 16000 LEVEL SOMETHING WAS BOUND TO HAPPEN AND 16200 ROUGHLY THE LOW SEEN EARLIER THIS WEEK WAS CLOSE ENOUGH FOR THE GOVERNMENT TO STEP IN SAID ALAN LIVSEY STOCK ANALYST AT KLEINWORT BENSON INTERNATIONAL INC LONDON SHARE PRICES CONSOLIDATED FOR A SECOND DAY AS RIGHTS ISSUES WERE UNVEILED AS FEARED AND INVESTORS TOOK PROFITS FRANKFURT STOCKS POSTED SLIGHT GAINS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 156 POINTS TO 28169 DECLINING ISSUES FAR OUTNUMBERED ADVANCING ISSUES 6930 THE FT 30STOCK INDEX SLIPPED 22 POINTS TO 21848 VOLUME WAS 8289 MILLION SHARES COMPARED WITH 7535 MILLION SHARES A DAY EARLIER TECHNICAL PRESSURE ALSO EMERGED AHEAD OF TODAY'S END OF THE TWOWEEK TRADING ACCOUNT BUT SHORTCOVERING LARGELY CUSHIONED THE BLOW DECLINES WERE BROADBASED AS RELATIVELY LITTLE CORPORATE NEWS EMERGED TO AFFECT PRICES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 552 POINTS TO 156784 ALSO THE INTRADAY HIGH AIDED BY OVERSEAS BUYING OF BLUE CHIPS AND THE REBOUND BOLSTERED THE SHORTTERM OUTLOOK FOR THE EXCHANGE PARIS STOCKS SHRUGGED OFF EARLY LOSSES TO CLOSE SLIGHTLY HIGHER AFTER TRADING ON THE BOURSE WAS INTERRUPTED AS STRIKING AUTO WORKERS OCCUPIED THE EXCHANGE AND OTHER MARKETS TO PROTEST PLANNED LAYOFFS MILAN EQUITIES AFTER A ROLLERCOASTER SESSION ENDED MOSTLY LOWER AS HOPES THAT ITALY WOULD REDUCE INTEREST RATES WERE DASHED BY LOWERTHANEXPECTED INFLATION DATA MADRID SHARES WEAKENED ON DWINDLING HOPES OF A GERMAN INTERESTRATE CUT AND ON DISAPPOINTMENT ABOUT A US DECISION TO LEVY PENALTIES ON SPANISH STEEL IMPORTS STOCKHOLM PRICES PLUNGED MAINLY BECAUSE OF WORRIES ABOUT INTEREST RATES AND WEAKNESS ON OTHER MAJOR MARKETS BUT ZURICH PRICES ROSE ON BUYING ENCOURAGED BY A FIRMER DOLLAR AMONG CORPORATE DEVELOPMENTS IN LONDON ASDA GROUP ROSE 45 PENCE OR 71 TO 675 PENCE 102 ON A PROFIT FORECAST THE SUPERMARKET CHAIN LAUNCHED A RIGHTS ISSUE OF NEW SHARES TO RAISE 347 MILLION 5248 MILLION FOR EVERY 10 SHARES HELD THREE WILL BE OFFERED AT 53 PENCE EACH ASDA SAID PROCEEDS WOULD HELP SPEED ITS RECOVERY FROM DEBT AND LOSSES THROUGH IMPROVING AND EXPANDING THE CHAIN ASDA ALSO PREDICTED THAT PROFIT BEFORE TAXES AND SPECIAL ITEMS FOR THE YEAR ENDING MAY 1 WILL BE AT LEAST 130 MILLION UP 50 FROM A YEAR EARLIER AND IT WILL REDUCE THE ANNUAL DIVIDEND 24 TO 16 PENCE A SHARE IN FRANKFURT THYSSEN ROSE 150 MARKS TO 171 MARKS 10785 IN AN EXPECTED REPORT THAT HAD ALREADY BEEN BUILT INTO THE THE STEEL AND ENGINEERING GROUP'S STOCK PRICE SALES FOR ITS FIRST QUARTER ENDED DEC 31 FELL 14 KLOECKNERHUMBOLDTDEUTZ FELL 180 OR 18 TO 100 THE MACHINERY AND ENGINEERING CONCERN LAST YEAR BROKE EVEN WITH 1991 RESULTS WHEN IT EARNED 10 MILLION MARKS ALSO AS PART OF A CAPITAL INCREASE KHD IN MARCH WILL OFFER SHAREHOLDERS ONE SHARE FOR EVERY TWO THEY ALREADY HOLD THE OFFERING INVOLVES ABOUT 32 MILLION NEW SHARES A PRICE HASN'T BEEN DECIDED IN PARIS CAP GEMINI SOGETI SOARED 77 FRENCH FRANCS OR 19 TO 1477 FRANCS 2750 THE COMPUTER SERVICES COMPANY POSTED A 1992 LOSS OF 80 MILLION FRANCS 149 MILLION COMPARED WITH 1991 PROFIT OF 560 MILLION FRANCS EXPLAINING THE STOCK'S SURGE ANALYSTS BELIEVE THE COMPANY HAS DISCLOSED ALL ITS BAD NEWS AND WILL HAVE A BETTER YEAR 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 IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9301290078 930129 SHOPSMITH SAYS IT CAN'T YET ASSESS SHIFT TO RETAILING BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL DAYTON OHIO SHOPSMITH INC MANAGEMENT IS MAKING HEADWAY WITH ITS PLAN TO BECOME A SUPPLIER OF A WIDER RANGE OF WOODWORKING PRODUCTS BUT IT IS TOO EARLY TO CALL THE TRANSITION TO A GREATER DEPENDENCE ON SPECIALTY RETAILING A ROARING SUCCESS SHOPSMITH AN OPERATOR OF WOODWORKING STORES AND PRODUCER OF POWER TOOLS CAN'T FORECAST WHETHER IT WILL EARN A PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 SAID WILLIAM C BECKER VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER SHOPSMITH ORDINARILY EARNS MOST OF ITS PROFIT IN THE SECOND HALF OF THE FISCAL YEAR WHEN PEOPLE ARE MORE INVOLVED WITH INDOOR HOBBIES HOWEVER MR BECKER SAID IT'S TOO EARLY TO SAY WHETHER PROFIT IN THE CURRENT HALF WILL BE LARGE ENOUGH TO OFFSET A LOSS OF 668955 OR 29 CENTS A SHARE FOR THE SIX MONTHS ENDED SEPT 30 IN THE FISCAL YEAR ENDED MARCH 31 1992 SHOPSMITH HAD A LOSS OF 816867 OR 35 CENTS A SHARE ON SALES OF 53 MILLION SALES OF SHOPSMITHMADE POWER TOOLS REMAIN SLUGGISH NARROWING GROSS MARGINS MR BECKER SAID THE COMPANY HAD FIRSTHALF SALES OF 21 MILLION DOWN 19 FROM A YEAR EARLIER DESPITE HIGHER SALES OF WOODWORKING PRODUCTS PURCHASED FROM OTHER MANUFACTURERS AND THERE HAS BEEN NO DRAMATIC CHANGE IN THE LAST FEW MONTHS MR BECKER SAID DESPITE THE RISING CONSUMER CONFIDENCE SPOTTED BY POLLSTERS PURCHASES OF COSTLY MACHINES USED IN A HOBBY ARE EASY TO DEFER MR BECKER NOTED A MODEST CHANGE IN SALES RATES FOR SHOPSMITHMADE MACHINES DURING THE NEXT TWO MONTHS WOULD HAVE A MAJOR IMPACT ON RESULTS FOR FISCAL 1993 HE SAID SHOPSMITH'S MAIN PRODUCT IS A MACHINE THAT FUNCTIONS AS A SAW LATHE SANDER BORING MACHINE AND DRILL PRESS AND WHICH RETAILS FOR 1700 TO 2000 IT APPEALS TO SERIOUS WOODWORKERS WHO HAVE LIMITED SHOP SPACE IN THE BASEMENT OR GARAGE UNTIL LATE 1991 SHOPSMITH WAS PRIMARILY A MANUFACTURER IT OPERATED RETAIL STORES MAINLY TO SELL ITS OWN MACHINES THEN IT DECIDED TO BROADEN ITS APPEAL TO A WIDER GROUP OF WOODWORKERS AND BEGAN CONVERTING ITS STORES TO WOODWORKING CENTERS AT THE SAME TIME THE COMPANY REDUCED ITS PARTS PRODUCTION AND BECAME PRIMARILY AN ASSEMBLER OF THE MACHINES BEARING THE SHOPSMITH LABEL SHOPSMITH'S NEW WOODWORKING UNLIMITED STORES CARRY POWER TOOLS MADE BY OTHER MANUFACTURERS AS WELL AS THE SHOPSMITH MACHINES AND THEY OFFER A BROAD RANGE OF HAND TOOLS AND MATERIALS ALONG WITH INSTRUCTION BOOKS AND VIDEOCASSETTES ON HOW TO MAKE FURNITURE AND OTHER ITEMS SHOPSMITH HAS CONVERTED A QUARTER OF ITS 40 US STORES TO WOODWORKING UNLIMITED OUTLETS SALES AT THE WOODWORKING UNLIMITED STORES ARE SUBSTANTIALLY HIGHER THAN THOSE OF THE STANDARD SHOPSMITH STORES MR BECKER SAID BUT THEY'RE ALSO MORE EXPENSIVE TO OPERATE AND ONLY THREE OF THE NEW STORES HAVE BEEN OPERATING FOR A FULL YEAR HE SAID MAKING IT DIFFICULT TO PREDICT PROFIT MARGINS 9301290077 930129 WHO'S NEWS IMMUNOMEDICS INC IMMUNOMEDICS INC MORRIS PLAINS NJ RICHARD MURAWSKI 44 YEARS OLD WAS NAMED VICE PRESIDENT OF OPERATIONS AT THIS BIOPHARMACEUTICAL CONCERN MR MURAWSKI WHOSE POSITION IS NEW HAD BEEN DIRECTOR OF OPERATIONS AT BURROUGHS WELLCOME CO'S BIOTECHNOLOGY MANUFACTURING FACILITY IN WEST GREENWICH RI 9301290076 930129 INTERNATIONAL JAPAN IMPOSES DUTIES FOR DUMPING FOR FIRST TIME TOKYO JAPAN OFTEN ACCUSED OF SELLING ITS PRODUCTS BELOW COST OVERSEAS IMPOSED ITS FIRSTEVER DUMPING DUTIES ON ANOTHER COUNTRY FRIDAY SLAPPING PUNITIVE TARIFFS ON CHINESE EXPORTERS OF A STEELMAKING MATERIAL JAPAN WILL IMPOSE DUTIES OF BETWEEN 45 AND 272 ON MORE THAN 100 CHINESE EXPORTERS OF FERROSILICON MANGANESE THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID CHINESE COMPANIES SHIPPED TO JAPAN 135000 METRIC TONS OF THE MATERIAL VALUED AT 70 MILLION IN 1991 A METRIC TON EQUALS 220462 POUNDS THE MOVE COMES AT A TIME WHEN JAPAN IS COMPLAINING THAT THE US AND EUROPE HAVE UNFAIRLY IMPOSED DUMPING DUTIES ON JAPANESE EXPORTS JAPAN RECENTLY FILED A COMPLAINT WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO PROTEST EUROPEAN DUMPING PENALTIES MITI RULED THAT THE CHINESE EXPORTERS HURT JAPANESE MAKERS BY UNFAIRLY UNDERPRICING FERROSILICON MANGANESE CHINESE MAKERS INCREASED THEIR SHARE OF JAPAN'S MARKET FOR THE MATERIAL TO 39 IN 1991 FROM 17 IN 1989 MITI SAID NORWEGIAN AND SOUTH AFRICAN EXPORTERS WERE ACCUSED OF DUMPING AS WELL BUT MITI SAID THEY WEREN'T PENALIZED BECAUSE NORWAY'S EXPORTS ARE SMALL AND SOUTH AFRICA'S DUMPING MARGINS NARROW 9301290075 930129 ABREAST OF THE MARKET INDUSTRIALS GAIN 1486 TO 330625 IGNORING BIG DOSE OF OTC SELLING BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS CLIMBED RESISTING ANOTHER HEAVY BOUT OF SELLING IN THE OVERTHECOUNTER MARKET BUT DECLINING ISSUES EDGED OUT ADVANCERS 918900 VOLUME WAS MODERATE WITH 255550000 SHARES CHANGING HANDS DOWN FROM 276880000 SHARES WEDNESDAY YOU HAVE TO BE IMPRESSED THAT THE MARKET WASN'T SHAKEN HERE SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER & CO IT HAD A LOT OF EXCUSES TO GO DOWN BUT IT CLOSED ABOVE 3300 WHICH IS A POSITIVE INDICATOR MR GALLAGHER SAID THE MARKET GOT A BOOST FROM REPORTS THAT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SUPPORTS PRESIDENT CLINTON'S PLAN TO SPEED ECONOMIC GROWTH WITH A MODEST SHORTTERM STIMULUS PROGRAM THAT REDUCES THE LIKELIHOOD THAT ECONOMIC GROWTH WHICH BODES WELL FOR CORPORATE PROFITS WILL BE STYMIED YET AGAIN LOWER INTEREST RATES ALSO SENT STOCKS HIGHER AS BOND PRICES CONTINUED TO CLIMB THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND IS NEAR A SIXYEAR LOW BUT DESPITE YESTERDAY'S GAINS MR GALLAGHER ISN'T BULLISH ON THE MARKET THERE ARE A LOT OF THINGS IN PLACE TO CAUSE THE MARKET TO HAVE A MEANINGFUL CORRECTION SAID MR GALLAGHER THE PROBLEM IS YOU CAN GET KILLED TRYING TO PICK THE TOP AMONG THE WARNING SIGNALS THAT MR GALLAGHER SEES IS THE SPECULATIVE FROTH THAT HAS PUSHED SMALL STOCK PRICES SHARPLY HIGHER OVER THE PAST FOUR MONTHS IN ADDITION HE WORRIES ABOUT THE RATIO OF ADVANCERS TO DECLINERS AND VOLUME PATTERNS ON THE BIG BOARD JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID YESTERDAY'S MARKET MOVES MAY SIGNAL THE TREND FOR THE NEXT FEW WEEKS WHAT I THINK WE ARE GOING TO SEE FOR THE BALANCE OF THE FIRST QUARTER IS THAT THE DOW IS GOING TO BE OUTPERFORMING THE NASDAQ AS IT CATCHES UP HE SAID OIL STOCKS PARTICULARLY THOSE OF DOMESTIC PRODUCERS WERE PUMPED UP BY NEWS OF A SENATE PROPOSAL TO SLAP A VARIABLE FEE ON OIL IMPORTS THE BILL INTRODUCED BY SEN BENNETT JOHNSTON D LA CALLS FOR A FEE WHENEVER THE PRICE ON INTERNATIONALLY TRADED CRUDE OIL FALLS BELOW 25 A BARREL CHEVRON GAINED 1 3/8 TO 72 1/2 TEXACO ADDED 7/8 TO 60 3/4 AND ATLANTIC RICHFIELD JUMPED 2 7/8 TO 117 7/8 INVESTORS HAMMERED CELLULAR STOCKS AGAIN ON FEARS THAT RADIATION FROM MOBILE TELEPHONES MAY CAUSE BRAIN TUMORS MOTOROLA THE WORLD'S BIGGEST PRODUCER OF CELLULAR TELEPHONES SLID 1 1/2 TO 55 7/8 ON 34 MILLION SHARES MORE THAN TWICE THE AVERAGE DAILY VOLUME CONSOLIDATED RAIL RACED UP 4 TO 54 1/8 LATE WEDNESDAY THE FREIGHT COMPANY REPORTED PROFIT OF 92 MILLION OR 110 A SHARE FOR THE FOURTH QUARTER AFTER LOSING 376 MILLION OR 462 A SHARE A YEAR EARLIER THE YEAREARLIER RESULTS INCLUDED A 447 MILLION CHARGE A DONALDSON LUFKIN & JENRETTE ANALYST RAISED HIS 1993 EARNINGS ESTIMATE FOR THE COMPANY TO 355 A SHARE FROM 345 AND SWEETENED HIS INVESTMENT RATING TO MODERATELY ATTRACTIVE FROM NEUTRAL WELLPOINT HEALTH NETWORKS WAS THE MOST ACTIVELY TRADED STOCK ON THE BIG BOARD WITH 91 MILLION SHARES CHANGING HANDS WELLPOINT SOLD 17 MILLION SHARES TO INVESTORS LATE WEDNESDAY AT 28 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE STOCK WAS UNCHANGED ALLIANT TECHSYSTEMS PLUNGED 4 1/4 TO 25 3/4 THE COMPANY HAD A LOSS OF 905 MILLION OR 937 A SHARE IN THE FISCAL THIRD QUARTER AFTER CHARGES A YEAR EARLIER THE COMPANY TURNED IN A PROFIT OF 8 MILLION OR 80 CENTS SERVICE MERCHANDISE TUMBLED 3 7/8 TO 11 1/4 LATE WEDNESDAY THE CATALOG AND SHOWROOM RETAILER SAID IT EARNED 896 MILLION OR 88 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH 887 MILLION OR 88 CENTS A YEAR EARLIER MANY ANALYSTS WERE EXPECTING THE COMPANY TO EARN 99 CENTS A SHARE YESTERDAY BEAR STEARNS CUT ITS INVESTMENT RATING ON SERVICE MERCHANDISE TO HOLD GLENFED LOST 1 1/2 TO 2 1/2 THE GLENDALE CALIF SAVINGS AND LOAN HAD A LOSS OF 794 MILLION OR 232 A SHARE IN THE FISCAL SECOND QUARTER AFTER EARNING 276 MILLION OR 78 CENTS A SHARE A YEAR EARLIER MOORE SLID 1 5/8 TO 15 3/8 THE COMPANY SAID IT WILL TAKE A PRETAX RESTRUCTURING CHARGE FOR 1992 OF ABOUT 77 MILLION RESULTING IN A SMALL LOSS FOR THE YEAR MCDERMOTT INTERNATIONAL SLIPPED 7/8 TO 24 3/4 LEHMAN BROTHERS LOWERED ITS RATING ON THE COMPANY'S STOCK TO NEUTRAL FROM BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 031 TO 41049 THERE WERE 282 GAINERS AND 270 DECLINERS 9301290074 930129 TECHNOLOGY & MEDICINE MCCAW TO STUDY CELLULAR PHONES AS SAFETY QUESTIONS AFFECT SALES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL A HIGHLY PUBLICIZED HEALTH SCARE THAT HAS BATTERED CELLULAR TELEPHONE STOCKS IS STARTING TO TAKE A BITE OUT OF CELLULAR SALES DEALERS SAID MEANWHILE CRAIG MCCAW CHAIRMAN OF MCCAW CELLULAR COMMUNICATIONS INC THE NATION'S LARGEST CELLULAR PHONE SERVICE COMPANY SAID HE IS COMMISSIONING A STUDY ON HOW CELLULAR PHONE ANTENNAS AFFECT USERS' EXPOSURE TO RADIO WAVES CUSTOMERS ARE CONCERNED SAYS ART LESSER PRESIDENT OF CAR PHONE CENTER A PHONE DEALER IN REDWOOD CITY CALIF ABOUT 10 WHO ARE COMING IN HAVE HAD QUESTIONS AND WANT TO KNOW IF THERE ARE STEPS THEY CAN TAKE FOR PROTECTION ADDS LARRY PAGELSDORF PRESIDENT OF COMMUNICATION CONNECTION MILWAUKEE I'M SEEING SOME PEOPLE HOLDING OFF BUYING PHONES BECAUSE OF THIS ONE ACCOUNT CANCELED AN ORDER FOR 40 PHONES THE CUSTOMER CONCERN FOLLOWS A LAWSUIT FILED BY DAVID REYNARD IN PINELLAS COUNTY CIRCUIT COURT IN FLORIDA MR REYNARD CHARGED THAT A CELLULAR PHONE CAUSED HIS WIFE'S FATAL BRAIN CANCER HE IS SEEKING UNDISCLOSED DAMAGES FROM JAPAN'S NEC CORP WHICH MADE THE PHONE COASTAL RADIOTELEPHONE INC WHICH SOLD HIM THE DEVICE AND GTE CORP'S CELLULAR UNIT WHICH PROVIDED THE CELLULAR PHONE SERVICE NO SCIENTIFIC EVIDENCE EXISTS TO LINK CELLULAR PHONE USE TO CANCER SEVERAL SCIENTISTS HAVE SAID HOWEVER THAT MR REYNARD'S SUIT EVEN IF GROUNDLESS HAS EXPOSED A SERIOUS DEFICIENCY IN RESEARCH ON HEALTH EFFECTS OF ELECTROMAGNETIC FIELDS PARTICULARLY THOSE EMITTED BY PORTABLE PHONES IN THE CELLULAR FREQUENCY BAND 800 TO 900 MILLIONS OF CYCLES PER SECOND OR MEGAHERTZ WHILE MOST INDUSTRY STUDIES TARGET THERMAL EFFECTS OF ELECTROMAGNETIC FIELDS SCIENTISTS SAY MORE STUDY IS NEEDED INTO THE NONTHERMAL EFFECTS OF THE FIELDS ESPECIALLY IN THE CELLULAR FREQUENCIES SCIENTISTS IN SWEDEN SAID THEIR TESTS IN FREQUENCIES JUST ABOVE THE CELLULAR BAND SHOWED RADIO WAVES CAN DAMAGE THE RESILIENT BLOODBRAIN BARRIER WHICH PROTECTS THE BRAIN FROM TOXINS OTHER SCIENTISTS SAID THEY HAVE USED RADIO FREQUENCIES INCLUDING THE EUROPEAN CELLULAR FREQUENCY TO DAMAGE THE CALCIUM COATING IN CELLS THAT REGULATES THE PASSAGE OF HORMONAL MESSAGES BETWEEN CELLS MOTOROLA INC EAGER TO PUT THE FEARS TO REST PROVIDED SEVERAL REPORTS ON THE EFFECTS OF RADIO WAVES ON HUMAN AND ANIMAL TISSUE AND CELLS HOWEVER NONE OF THE TESTS WAS CONDUCTED IN THE CELLULAR BAND AND NONE WAS CONDUCTED LATER THAN 1990 ONE EPIDEMIOLOGICAL STUDY OF MICROWAVE EFFECTS DATES TO 1980 ALMOST THREE YEARS BEFORE CURRENT ELECTROMAGNETIC FIELD EXPOSURE STANDARDS WERE SET BY THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS AND SEVERAL YEARS BEFORE CELLULAR PHONES BECAME WIDELY USED TODAY THERE ARE 10 MILLION USERS OF THE PHONES IN THE US AND MOST NEW SALES ARE FOR PORTABLES THAT CONTAIN THE TRANSMITTER IN THE HANDSET WHICH LIKE A REGULAR PHONE RECEIVER THE CUSTOMER PLACES NEXT TO HIS HEAD NOW SOME OF THOSE CUSTOMERS ARE BEGINNING TO DEMAND ANSWERS FROM CELLULAR PHONE DEALERS ABOUT WHETHER THEIR PHONES CAUSE HEALTH PROBLEMS MATT CRIST 29YEAROLD COOWNER OF AN OLDSMAR FLA SOUVENIR COMPANY AND A USER OF A MOTOROLA PORTABLE CELLULAR PHONE BLAMES HIS BRAIN CANCER ON THE UNIT IF THE PHONE DIDN'T CAUSE MY CANCER IT MADE IT WORSE HE SAYS IT'S A YOUNG LOWGRADE TUMOR I'VE NEVER BEEN SERIOUSLY ILL IN MY LIFE MR CRIST CANCELED HIS SERVICE FROM CELLULAR ONE IN NAPLES FLA EARLIER THIS MONTH MR CRIST'S COMPLAINTS FOLLOW A WEEK OF DAMAGE CONTROL BY MOTOROLA AND THE CELLULAR PHONE INDUSTRY WHICH IS ANXIOUS TO KEEP MR REYNARD'S LAWSUIT FROM DERAILING THE INDUSTRY'S FAST GROWTH THE WIRELESS FUTURE CAN'T HAPPEN IF WE OVERREACT SAYS A SPOKESMAN FOR MCCAW CELLULAR MR MCCAW WHO RECENTLY PUT TOGETHER A 38 BILLION AGREEMENT TO SELL A THIRD OF HIS COMPANY TO AMERICAN TELEPHONE & TELEGRAPH CO MET IN HIS KIRKLAND WASH OFFICE WITH A LEADING BIOENGINEER TO PLAN A NEW CELLULAR PHONE STUDY ARTHUR GUY DIRECTOR OF THE UNIVERSITY OF WASHINGTON'S BIOELECTROMAGNETICS RESEARCH LABORATORY SAID HE HAD ASKED OM GANDHI OF THE UNIVERSITY OF UTAH AND COCHAIRMAN OF THE GROUP THAT SET THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS' LATEST EXPOSURE STANDARDS TO DO A COMPUTER ANALYSIS OF EXISTING TESTS IN THE CELLULAR FREQUENCIES WE WANT TO QUANTIFY THE ENERGY DISTRIBUTION PATTERNS IN THE HEAD AND HOW THEY RELATE TO THE ANTENNA OUTPUT ON A CELLULAR PHONE DR GUY SAYS THIS WOULD ALSO PROVIDE A TOOL FOR MODIFYING THE ANTENNA TO REDUCE EXPOSURES A MCCAW SPOKESMAN SAYS THE COMPANY HAS HAD SEVERAL HUNDRED INQUIRIES FROM CUSTOMERS OUT OF ITS TOTAL BASE OF TWO MILLION CLIENTS THERE HAVE BEEN A HANDFUL OF DEACTIVATIONS HE ADDS A CHECK OF THE REGIONAL BELL COMPANIES' CELLULAR UNITS SHOWED A SMALL NUMBER OF CALLERS SEEKING INFORMATION ON CELLULAR PHONE SAFETY ONE BABY BELL U S WEST INC ENGLEWOOD COLO SAID IT WOULD SEND AN INSERT WITH ITS NEXT MONTHLY BILL THAT WOULD ADDRESS THE ISSUE THE OTHER BELL COMPANIES ARE AMERITECH CORP CHICAGO BELL ATLANTIC CORP PHILADELPHIA BELLSOUTH CORP ATLANTA NYNEX CORP NEW YORK SOUTHWESTERN BELL CORP ST LOUIS AND PACIFIC TELESIS GROUP SAN FRANCISCO CELLULAR PHONE DEALERS REPORT CUSTOMERS COMING IN AND ASKING FOR DEVICES THAT WILL ALLOW THEM TO CONNECT THEIR PORTABLE PHONE ANTENNAS TO THEIR CARS' OUTSIDE ANTENNAS WHILE THEY'RE DRIVING MR MCCAW SAYS IF CUSTOMERS WANT TO MAKE THAT SUBSTITUTE A CAR PHONE FOR A PORTABLE WE WILL DO IT AND MAKE IT ECONOMICALLY ADVANTAGEOUS HE DECLINED TO ELABORATE SOME ANALYSTS SAY THIS MAY NOT BE ENOUGH TO ALLAY CUSTOMER FEARS IT'S GOING TO BE A LINGERING DARK CLOUD FOR THE INDUSTRY SAYS JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC STOCKS HAVE BEEN FALLING ALL WEEK AND IT'S CLEAR NOBODY HAS DONE DEFINITIVE STUDIES HE SAYS HE POLLED A HALF DOZEN CELLULAR PHONE USERS AT WORK AND THEY'RE ALL GOING TO CUT BACK ON THEIR CELLULAR PHONE USE INCLUDING ME GREGORY SAWERS AN ANALYST AT SANFORD BERNSTEIN & CO SAYS HE EXPECTS TO SEE A SLOWING OF CELLULAR INDUSTRY GROWTH RATES BY THE SECOND OR THIRD QUARTER IF CUSTOMERS CANNOT BE REASSURED ABOUT THE SAFETY OF THE PHONES I USE MY PORTABLE PRETTY FREQUENTLY HE SAYS I WON'T USE IT AS MUCH IN THE FUTURE LATE YESTERDAY MCCAW TRADED AT 35875 DOWN 875 CENTS IN THE OVERTHECOUNTER MARKET ON THE NEW YORK STOCK EXCHANGE MOTOROLA FELL 150 TO 55875 GTE WAS UNCHANGED AT 35375 AND CENTEL SLIPPED 375 CENTS TO 3675 9301290073 930129 POLITICS & POLICY CAMPAIGNFINANCE PLAN OF DEMOCRATS WON'T START TILL '95 BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE PROMISES OF EARLY ACTION ON CAMPAIGN FINANCE REFORM SPEAKER THOMAS FOLEY SAID THE CHANGES BEING PROPOSED BY HOUSE DEMOCRATS WON'T TAKE EFFECT UNTIL AFTER CONGRESSIONAL ELECTIONS NEXT YEAR THE WASHINGTON DEMOCRAT SAID THE DELAY IS JUSTIFIED BECAUSE THE 1994 ELECTION CYCLE HAS ALREADY BEGUN NEVERTHELESS IT CREATES AN EMBARRASSING GAP BETWEEN PROMISES TO PASS THE BILL THIS SPRING AND ITS EFFECTIVE DATE IN JANUARY 1995 HOUSE REPUBLICANS SAY THEIR OWN ALTERNATIVE REFORM BILL WOULD APPLY TO NEXT YEAR'S ELECTION AND FRED WERTHEIMER PRESIDENT OF THE SELFSTYLED CITIZENS LOBBY COMMON CAUSE SAID THERE WAS NO LEGITIMATE JUSTIFICATION FOR THE DELAY WHEN THE VOTERS PROVIDED A MANDATE FOR CHANGE IN THE WAY BUSINESS IS DONE IN WASHINGTON THEY WEREN'T VOTING FOR CHANGE BEGINNING IN 1995 SAID MR WERTHEIMER THEY WERE VOTING FOR CHANGE NOW CAMPAIGNFINANCE REFORM WAS A SOURCE OF PARTISAN JOCKEYING THROUGHOUT THE LAST CONGRESS AND A DEMOCRATIC BILL WAS ULTIMATELY VETOED BY PRESIDENT BUSH LAST SUMMER THROUGHOUT THE FALL ELECTION BOTH PARTIES PROMISED PROMPT ACTION AND THE ISSUE BECAME A CENTERPIECE OF THE DEMOCRATS' PLATFORM PLEDGING TO END LEGISLATIVE GRIDLOCK AND FORCE CHANGE UPON WASHINGTON FOR HOUSE INCUMBENTS HOWEVER THE 1992 ELECTION PROVED TO BE AN IMMENSELY COSTLY ONE FINANCIALLY AND MANY SPENT FAR BEYOND THE SPENDING CAPS THEY HAD PROPOSED TO IMPOSE ON THEMSELVES IN THE BILL VETOED BY THE PRESIDENT GOING INTO 1994 THERE'S NATURAL CONCERN ABOUT THE MAJORITY'S VULNERABILITY IN AN OFFYEAR ELECTION AND A DELAY WOULD ALLOW INCUMBENTS AGAIN TO USE THEIR FINANCIAL EDGE TO BEAT BACK CHALLENGERS MR CLINTON HAS YET TO SAY WHAT EFFECTIVE DATE HE WANTS FOR THE LEGISLATION BUT HE IS EXPECTED TO SPEAK TO THE CAMPAIGNFINANCE ISSUE IN HIS FEB 17 ADDRESS TO CONGRESS THIS IS FORCING THE WHITE HOUSE TO FOCUS ON THE ISSUE ITSELF AND THE ADMINISTRATION FACES PROBLEMS OF ITS OWN IN LIVING WITH THE BILL PASSED LAST YEAR AS AN EARLY PRIMARY CANDIDATE MR CLINTON PLEDGED TO SUPPORT PROVISIONS RESTRICTING SOCALLED SOFT MONEY CONTRIBUTIONS WHICH ARE RAISED OUTSIDE FEDERAL ELECTION RULES AND CAN INCLUDE CORPORATE AND UNION CONTRIBUTIONS AS WELL AS LARGE DONATIONS FROM INDIVIDUALS WITH CONTROL OF THE WHITE HOUSE DEMOCRATS ARE POSITIONED TO RAISE HUGE SUMS FROM THESE SOURCES FOR PARTYBUILDING EFFORTS AND DESPITE MR CLINTON'S PLEDGE THERE'S CLEAR RESISTANCE TO ACCEPTING LAST YEAR'S BILL WITHOUT ALTERATION 9301290072 930129 WANG SAYS IT WILL LEAVE HOMETOWN POSTS NET FOR PERIOD BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL LOWELL MASS THE COMPANY THAT REVIVED THIS OLD MILL TOWN MAY BE LEAVING IT TOP MANAGERS OF WANG LABORATORIES INC TOLD EMPLOYEES YESTERDAY THAT WANG PLANS TO LEAVE ITS SPRAWLING 13 MILLIONSQUAREFOOT COMPLEX IN LOWELL IN THE FORSEEABLE FUTURE FOR LESS COSTLY SPACE WANG'S ARRIVAL IN LOWELL IN 1976 AND ITS LATER GROWTH HAD BEEN WIDELY HERALDED AS A MODEL FOR RESUSCITATING OLDLINE INDUSTRIAL TOWNS WITH HIGHTECH MANUFACTURING WANG OPERATING UNDER A CHAPTER 11 BANKRUPCTY REORGANIZATION ALSO HAS BEEN DISMISSING EMPLOYEES AND SLASHING COSTS TO STAY VIABLE A WANG SPOKESMAN SAID THE COMPANY IS LOOKING FOR A BUYER FOR ITS LOWELL FACILITIES AND IS CONSIDERING NEW HEADQUARTERS SITES IN NEARBY COMMUNITIES THE SPOKESMAN SAID THE COMPANY IS NOT RULING OUT LOWELL BUT WOULD HAVE A GREATLY SCALEDDOWN SPACE WHEREVER IT GOES WANG MANAGEMENT ALSO TOLD EMPLOYEES YESTERDAY THAT THE COMPANY'S PREVIOUSLY STATED GOAL OF KEEPING AT LEAST 8000 EMPLOYEES MAY NO LONGER BE POSSIBLE WANG HAS 10000 EMPLOYEES NOW AND HAD 31600 AT ITS PEAK IN 1985 SEPARATELY WANG REPORTED THAT IT EKED OUT A PROFIT IN ITS FISCAL SECOND QUARTER DESPITE A 30 REVENUE DECLINE WANG REPORTED NET INCOME OF 400000 COMPARED WITH A LOSS OF 68 MILLION OR FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD THE RESULTS FOR THE LATEST QUARTER ENDED DEC 31 INCLUDED A 194 MILLION FOREIGN EXCHANGE GAIN RELATED TO ITS SWISS FRANCDENOMINATED BONDS WANG SAID REVENUE FOR THE QUARTER FELL TO 3512 MILLION FROM 5007 MILLION EVEN THOUGH THE SECOND QUARTER IS SEASONALLY STRONG BECAUSE OF THE BUYING CYCLE OF US GOVERNMENT AGENCIES WHICH ARE SOME OF WANG'S STRONGEST CUSTOMERS THE SECONDQUARTER REVENUE FELL SLIGHTLY BELOW REVENUE FOR THE NORMALLY WEAK SUMMER QUARTER WANG SAID RESULTS WERE AFFECTED BY CONTINUED LOWER MARGINS RESULTING FROM WORLDWIDE COMPETITIVE PRICING PRESSURES AND BY A CONTINUED SHIFT IN CUSTOMER DEMAND TO LOWER PRICED PRODUCTS WANG SAID THAT IT EXPECTS REVENUE FOR THE FULL YEAR TO BE 13 BILLION TO 14 BILLION DOWN 26 TO 31 FROM 19 BILLION LAST YEAR IT SAID IT CONTINUES TO EXPECT A SUCCESSFUL AND TIMELY EMERGENCE FROM ITS CHAPTER 11 PROCEEDINGS FOR THE SIX MONTHS WANG REPORTED A NET LOSS OF 662 MILLION OR 39 CENTS A SHARE COMPARED WITH A LOSS OF 166 MILLION OR 10 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FELL 26 TO 7112 MILLION FROM 9618 MILLION 9301290071 930129 BUSINESS BRIEF US HEALTHCARE INC STRATEGIC ALLIANCE IS FORMED WITH BRITISH HEALTH INSURER US HEALTHCARE INC BLUE BELL PA SAID IT AGREED TO FORM A STRATEGIC ALLIANCE WITH A BRITISH HEALTH INSURER WHICH COULD INCLUDE JOINTLY SETTING UP MANAGEDCARE SYSTEMS IN EUROPE US HEALTHCARE SAID THE ALLIANCE WITH BRITISH UNITED SHOULDN'T BE SEEN AS A PRELUDE TO A POSSIBLE UNION OF THE TWO COMPANIES A SPOKESMAN FOR US HEALTHCARE ADDED THAT NO MONEY WILL CHANGE HANDS AT THE OUTSET OF THE ALLIANCE AMONG THE INITIAL PROJECTS TO BE CARRIED OUT IS A JOINT EFFORT TO SET UP A QUALITYASSESSMENT PROGRAM FOR MEDICAL CARE IN BRITAIN 9301290070 930129 TECHNOLOGY RHONEPOULENC MILES SETTLE PATENT DISPUTE ON HEMOPHILIA FACTOR COLLEGEVILLE PA RHONEPOULENC RORER INC AND MILES INC SAID THEY SETTLED THEIR PATENT DISPUTE OVER A BLOODCLOTTING FACTOR FOR TREATMENT OF HEMOPHILIA TERMS OF THE SETTLEMENT WEREN'T DISCLOSED THE DISPUTE CONCERNED RECOMBINANTDNA FACTOR VIII WHICH IS USED TO PREVENT AND CONTROL BLEEDING IN PEOPLE WITH FACTOR VIII DEFICIENCY ALSO KNOWN AS HEMOPHILIA A MILES INC A PITTSBURGH CHEMICAL AND PHARMACEUTICAL SUBSIDIARY OF GERMANY'S BAYER AG WAS SUED IN 1983 AS WERE GENENTECH INC AND CHIRON CORP BY RHONEPOULENC'S PREDECESSOR RORER GROUP INC BAXTER INTERNATIONAL INC ALSO WAS SUED IN 1987 OVER ITS BLOODCLOTTING FACTOR RHONEPOULENC CHARGED THAT BAXTER'S PRODUCT ALTHOUGH NOT FORMULATED FROM RECOMBINANT DNA VIOLATED A PATENT FROM THE SCRIPPS INSTITUTE THAT WAS LICENSED TO RHONEPOULENC A RHONEPOULENC RORER SPOKESMAN SAID SUITS AGAINST THE OTHER COMPANIES CONTINUE THE COMPANY IS MAJORITY OWNED BY FRANCE'S RHONEPOULENC SA 9301290069 930129 DONNELLEY WILL CLOSE PLANT THAT PRINTED SEARS CATALOG CHICAGO RR DONNELLEY & SONS CO SAID IT WILL CLOSE A PLANT WHERE THE SEARS ROEBUCK & CO CATALOG HAS BEEN PRINTED SINCE 1928 THE MOVE REFLECTS SEARS'S DECISION THIS WEEK TO CANCEL ITS GENERALMERCHANDISE CATALOG BUSINESS AS PART OF A BROAD REVAMPING OF ITS MARKETING STRATEGY DONNELLEY HAS PRINTED THE CATALOGS FOR THE PAST 80 YEARS ABOUT 60 OF THE FACILITY'S PRODUCTION WAS DEDICATED TO PRINTING SEARS CATALOGS IT TURNED OUT 60 MILLION LAST YEAR THE PLANT ON CHICAGO'S SOUTH SIDE HAS 660 FULLTIME WORKERS AND ABOUT 140 ON A PARTTIME BASIS DONNELLEY THE WORLD'S LARGEST COMMERCIAL PRINTER WILL TAKE A 60 MILLION CHARGE IN ITS FIRST QUARTER TO COVER THE CLOSURE AND RELOCATION OF THE PLANT'S REMAINING NONSEARS PRODUCTION A SPOKESWOMAN SAID THE JOBS AT THE CHICAGO PLANT WILL BE ELIMINATED WITH EMPLOYEES TO BE TERMINATED THROUGH EARLYRETIREMENT OR VOLUNTARYSEPARATION PACKAGES AND OTHER MEANS INCLUDED IN THE CHARGE IS AN ALLOWANCE FOR ANTICIPATED CONSOLIDATION AND RATIONALIZATION OF DONNELLEY'S PREPRESS FACILITIES NATIONWIDE THOSE OPERATIONS DONNELLEY NOTED INCLUDE A PREPRESS FACILITY IN NEARBY ELGIN ILL WHERE ABOUT ONEQUARTER OF THE 420WORKER PLANT'S OUTPUT WAS DEVOTED TO SEARS CATALOGS SEPARATELY DONNELLEY REPORTED FOURTHQUARTER EARNINGS ROSE 67 TO 731 MILLION OR 47 CENTS A SHARE FROM THE YEAREARLIER 685 MILLION OR 44 CENTS A SHARE THE YEAREARLIER FIGURE WAS ADJUSTED FOR A STOCK SPLIT REVENUE WAS 121 BILLION UP 62 FROM 114 BILLION 9301290068 930129 SCRAPING BY DESPITE THEIR WOES RUSSIANS SOMEHOW FIND WAYS TO COPE THEIR RESOURCEFULNESS GIVES YELTSIN BREATHING SPACE FOR HIS MARKET REFORMS MASSAGES FOR MOSCOW'S ELITE BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ON A FROZEN SIDEWALK IN THE SWIRLING SNOW 84YEAROLD TATIANA MALKOVA IS OFFERING CARTONS OF FRESH MILK FOR 40 RUBLES SURE IT'S A 65 MARKUP OVER THE OFFICIAL FIXED PRICE BUT THE DIMINUTIVE WIDOW HAD TO STAND IN LINE FOR TWO HOURS TO GET THE MILK AND WITHOUT THESE FEW EXTRA RUBLES SHE WOULD BE HARDPRESSED TO SURVIVE ON A STATE PENSION EQUIVALENT TO 5 A MONTH I'M TOO OLD FOR BUSINESS BUT I HAVE TO DO THIS ONCE A WEEK SAYS MRS MALKOVA WHO CONCEALS HER MILK IN A STRING BAG AS A POLICEMAN APPROACHES THESE DAYS EVERYONE HAS TO DO SOMETHING EXTRA TO GET BY IN TODAY'S RUSSIA THE KEY WORD IS RESOURCEFULNESS DURING THE PREVIOUS TWO WINTERS HERE THE TALK WAS OF SHORTAGES CIVIL UNREST EVEN STARVATION THIS YEAR THE ECONOMY IS IN EVEN WORSE SHAPE BUT MOST PEOPLE ARE SOMEHOW FINDING WAYS TO SCRAPE BY AND THERE IS A SURPRISING NORMALCY TO EVERYDAY LIFE FOR BORIS YELTSIN THIS PROVIDES SOME MUCHNEEDED BREATHING SPACE TO PURSUE HIS POLICIES OF REFORM WHILE CONSERVATIVE OPPONENTS CONTINUE TO ATTACK THE PRESIDENT'S ATTEMPT TO SHAKE RUSSIA OUT OF ITS RELATIVELY STABLE COMMUNIST PAST HE HASN'T BEEN FORCED TO COPE WITH THREATS OF SOCIAL UNREST TOO AND HE MAY NOT HAVE TO AT LEAST AS LONG AS RUSSIA CONTINUES TO HOLD INFLATION TO LESS THAN 50 A MONTH THE HYPERINFLATION THRESHOLD THAT CAN OFTEN PROVOKE PANIC BUYING AND CIVIL UNREST PRICES ROSE 25 IN DECEMBER EXPECTATIONS OF AN ADDITIONAL 40 JUMP THIS MONTH HAVE PROMPTED THE GOVERNMENT TO REDOUBLE ATTEMPTS TO TIGHTEN THE MONEY SUPPLY SO FAR NEOCOMMUNIST LABOR LEADERS AROUND THE COUNTRY HAVE BEEN REMARKABLY INEFFECTIVE IN TRYING TO ORGANIZE INDUSTRIAL STRIKES EVEN THOUGH THE SITUATION WOULD SEEM RIPE FOR SUCH ACTION THE TALK OF CHAOS IN THE COUNTRY IS GROUNDLESS MR YELTSIN BEAMED TO REPORTERS ON A VISIT TO A MOSCOW SUBWAY STATION EARLIER THIS MONTH JUDGING FROM PRICES IN THE MARKETS A WEEK'S WORTH OF SQUARE MEALS ALONE SHOULD WIPE OUT AN AVERAGE MONTHLY INCOME SINCE JANUARY 1992 WHEN THE COUNTRY BEGAN ITS LURCH FROM A COMMAND ECONOMY TOWARD A FREEMARKET SYSTEM PRICES HAVE RISEN 2200 THE AVERAGE MONTHLY SALARY MEANWHILE HAS EDGED UP TO 13000 RUBLES OR 22 AND PLENTY OF PEOPLE EARN LESS BUT SAYS YELTSIN ADVISER GEORGY ARBATOV RUSSIANS' ABILITY TO SURVIVE IS MUCH GREATER THAN THAT OF OTHER PEOPLE PEOPLE HERE HAVE SUFFERED SO MUCH THEIR BUSINESS IS SURVIVAL CONSIDER LARISSA FIGUROVA A 36YEAROLD PHD AND PROFESSOR AT THE RUSSIAN ACADEMY OF MEDICAL SCIENCES PRESTIGE SHE HAS MONEY SHE DOESN'T DESPITE HER STATUS SHE EARNS JUST 3600 RUBLES A MONTH WHICH TRANSLATES INTO ABOUT 6 THE RUSSIAN GOVERNMENT SADDLED WITH A BUDGET DEFICIT EQUAL TO 20 OF THE GROSS NATIONAL PROCT IS HARDPRESSED TO RAISE SALARIES LIKE HERS MS FIGUROVA WHO IS DIVORCED LIVES WITH HER 13YEAROLD DAUGHTER IN A SMALL APARTMENT IN THE MOSCOW SUBURB OF KHIMKI THE STATE STILL SUBSIDIZES RENT UTILITIES AND THE COST OF EDUCATION BUT MS FIGUROVA'S SALARY CAN'T EVEN COVER FOOD A FISH FOR EXAMPLE WOULD SET HER BACK ONETHIRD OF HER MONTHLY PAY TO SURVIVE MS FIGUROVA HAS TAKEN TO MOONLIGHTING TEACHING ENGLISH IN HER FREE TIME TO FELLOW PROFESSIONALS FOR THAT SHE EARNS ANOTHER 10000 RUBLES MONTHLY MOREOVER HER STUDENTS INCLUDE SEVERAL DOCTORS INCLUDING A PEDIATRICIAN AND A SURGEON WHO IN RETURN FOR THEIR LESSONS PROVIDE HER WITH FREE MEDICAL CARE AND WHEN AVAILABLE FREE MEDICINE SHE GETS BY BUT THE COST AS FOR MANY OTHER RUSSIANS WHO HAVE HAD TO TAKE ON SECOND AND THIRD JOBS IS STEEP I'VE LOST MY FREE TIME SHE SAYS WITH A SIGH I USED TO LOOK FORWARD TO MEETING FRIENDS OR TAKING MY DAUGHTER TO THE THEATER NOW I SIMPLY CAN'T IF I HAVE ANY EXTRA TIME I SHOP ALWAYS LOOKING FOR SOMETHING CHEAPER MS FIGUROVA STOPPED BUYING CLOTHES FOR HERSELF IN 1990 SHE LAST SHOPPED FOR HER DAUGHTER THREE MONTHS AGO WHEN SHE BOUGHT JEANS AND SHOES SHE STILL REMEMBERS THE PRICE 4000 RUBLES I THINK ABOUT MONEY ALL THE TIME DAY AND NIGHT SHE SAYS SURPRISINGLY PERHAPS SOME OF THOSE HARDEST HIT BY RUSSIA'S ECONOMIC CHANGES STILL SUPPORT THE REFORMS MANY ARE UNIMPRESSED BY RUSSIA'S NEW PRIME MINISTER VIKTOR CHERNOMYRDIN WHO PROMISES TO SOFTEN THE STING OF THE ECONOMICREFORM POLICY OF HIS PREDECESSOR YEGOR GAIDAR I DON'T THINK ANYTHING GOOD WILL COME FROM THE NEW PRIME MINISTER SAYS IGOR MOZERSKY 32 A COMPUTER PROGRAMMER STRUGGLING TO PROVIDE FOR HIS WIFE AND YOUNG SON AT LEAST WHEN GAIDAR WAS IN POWER THERE WAS SOME HOPE THAT THE ECONOMY ONE DAY WOULD BECOME CIVILIZED FOR MR MOZERSKY THE ONLY WAY TO COPE ON A MEAGER SALARY EQUIVALENT TO 24 A MONTH IS SIMPLY TO DO WITHOUT WE KNOW OUR LIMITS HE SAYS WE'VE EVEN STOPPED DREAMING ABOUT WHAT WE CAN'T HAVE I HAVEN'T HAD A BEER IN A YEAR WORSE THE MOZERSKYS FEEL THAT ECONOMIC HARDSHIP PRECLUDES THEIR HAVING A SECOND CHILD IF INFLATION GETS WORSE WE COULDN'T POSSIBLY FEED ANOTHER MOUTH MR MOZERSKY SAYS MANY FAMILIES FEEL THE SAME WAY RUSSIA'S BIRTH RATE LAST YEAR DROPPED STEEPLY TO A POSTWAR LOW AND WAS EXCEEDED BY THE DEATH RATE THE MOZERSKYS' CHILD THREEYEAROLD ILYA IS A VIRTUAL SHUTIN HIS PARENTS FEAR THAT THE LOCAL CLINIC'S VACCINES ARE SPOILED SO THEY HAVE BEEN UNABLE TO IMMUNIZE HIM AGAINST DIPHTHERIA OR TETANUS ILYA STAYS HOME ALL DAY SINCE THE MOZERSKYS WON'T RISK EXPOSING HIM TO INFECTION THE BOY IS READY FOR NURSERY SCHOOL AND WE CAN'T EVEN SEND HIM SAYS MR MOZERSKY'S WIFE LENA LESS BUT SOMEHOW WE HAVE TO SURVIVE THIRTYYEAROLD ELENA MARTIONOVA WAS WORKING PART TIME WHEN THE GAIDAR REFORMS BEGAN WHEN THE GOVERNMENT LIFTED CONTROLS ON MOST PRICES THE COST OF FOOD AND CLOTHING IMMEDIATELY JUMPED 400 FORCING HER TO SCRAMBLE FOR MORE MONEY TRAINED AS A MASSAGE THERAPIST SHE DECIDED TO STRIKE OUT ON HER OWN CALLING FORMER PATIENTS SHE HAD MET YEARS EARLIER WHEN SHE WORKED AT AN EXCLUSIVE HOSPITAL FOR MOSCOW'S ELITE SHE BEGAN WORK AS A PRIVATE MASSEUSE FOR RUSSIA'S WEALTHY NEW PRIVATE BUSINESSMEN LATER SHE PLACED AN AD FOR HER SERVICES IN AN ENGLISHLANGUAGE MOSCOW DAILY AND BEGAN TO FIND FOREIGN CLIENTS JOINING THE GROWING NUMBER OF RUSSIANS SETTING UP SERVICE INDUSTRIES TO CATER TO RUSSIA'S DOLLARRICH FOREIGN RESIDENTS GIVING MASSAGES TO FOREIGNERS ISN'T HER DREAM JOB AND MANY TELEPHONE CALLERS EXPECT SEX ONLY TO BE DISAPPOINTED BUT THE JOB PAYS THE BILLS MS MARTIONOVA MAKES MORE THAN 8000 RUBLES A MONTH LESS THAN THE NATIONAL AVERAGE BUT ENOUGH TO SUPPORT HERSELF AND A GRANDMOTHER WHO SHARES HER SMALL RUNDOWN APARTMENT I'M WILLING TO SUFFER SO THAT THINGS GET BETTER IN THE LONG RUN SAYS THE REDHEADED MS MARTIONOVA AS SHE SETS HER SMALL DINING TABLE APOLOGIZING TO A GUEST THAT SHE CAN'T PRODUCE EVEN TWO MATCHING NAPKINS SHE MOTIONS TOWARD HER MOTHER AND GRANDMOTHER SEATED BESIDE HER AT THE TABLE THEY'VE BEEN WAITING THEIR WHOLE LIVES SHE SAYS MS MARTIONOVA'S GRANDMOTHER AN ALERT 87YEAROLD CHIMES IN THE RUSSIAN PEOPLE CAN LIVE THROUGH ANYTHING SAYS MARIA ALEXEYEVA OPENING A MOUTH THAT REVEALS JUST TWO TEETH ONE ON TOP ONE ON THE BOTTOM I'VE BEEN THROUGH IT ALL WORLD WAR I REVOLUTION WORLD WAR II AND NOW THIS DIFFICULT SITUATION BUT WE GET BY FOR MANY URBAN RUSSIANS THE DACHA OR COUNTRY HOME ONCE A SOURCE PRIMARILY OF RELAXATION AND ESCAPE IS BECOMING A CRITICAL INGREDIENT OF ECONOMIC SURVIVAL ALEXANDER OGLEZNEV 55 RECEIVED A MODEST DACHA 10 YEARS AGO THROUGH HIS INSTITUTE A UNIT OF THE AGRICULTURE MINISTRY NOW IT IS HIS SALVATION SINCE STATE INSTITUTES LIKE HIS HAVE STOPPED PROVIDING STAFF WITH THE ONCEREGULAR SUPPLIES OF SUBSIDIZED FOOD AND CONSUMER GOODS A DESKBOUND BUREAUCRAT DURING THE WEEK MR OGLEZNEV NOW SPENDS EVERY WEEKEND TENDING THE SMALL FIELD ADJACENT TO HIS DACHA HE GROWS ALL THE VEGETABLES HIS FAMILY NEEDS PACKS ENDLESS JARS OF FRUIT PRESERVES AND EVEN BOTTLES HOMEMADE BLACKCURRANT WINE WITHOUT THE DACHA I WOULD BE IN SERIOUS FINANCIAL DIFFICULTY SAYS THE BESPECTACLED MR OGLEZNEV THIS IS THE ONLY WAY TO GUARANTEE A DECENT LEVEL OF DIET NOT ALL ARE HANGING ON TO THEIR PRESTIGIOUS BUT LOWPAYING STATE JOBS MANY ARE PLUNGING INTO THE UNCERTAIN BUT POTENTIALLY LUCRATIVE NEW WORLD OF BUSINESS ANATOLI DARCHIEV SERVED UNTIL RECENTLY AS A SENIOR COUNSELOR AT RUSSIA'S EMBASSY IN NEW DELHI HE WAS OFFERED SEVERAL ATTRACTIVE POSTS WITH THE FOREIGN MINISTRY INCLUDING AN AMBASSADORIALLEVEL JOB IN MOSCOW BUT HE TURNED THEM DOWN PART OF THE REASON WAS A SENSE OF DISILLUSIONMENT AFTER THE BREAKUP OF THE SOVIET UNION BUT ANOTHER CRITICAL FACTOR WAS MONEY EVEN WITH A TOP MINISTERIAL JOB MR DARCHIEV 38 COULD HAVE EXPECTED TO MAKE NO MORE THAN 9000 RUBLES A MONTH SO HE HOOKED UP WITH A HONG KONGBASED INDIAN FAMILY TO SET UP A TRADING COMPANY IN MOSCOW IN JUST TWO MONTHS MR DARCHIEV SPENT HIS LIFE'S SAVINGS TO FORM THE COMPANY VEGA LTD THE INVESTMENT INCLUDED VARIOUS UNAVOIDABLE BRIBES TO BUREAUCRATS IT'S IMPOSSIBLE TO HAVE A COMPLETELY CLEAN BUSINESS AT THE INITIAL STAGE HE SAYS TAKING ADVANTAGE OF CONNECTIONS BUILT UP DURING HIS FOREIGNSERVICE CAREER MR DARCHIEV SECURED AN OFFICE IN A GOVERNMENT BUILDING IN THE CITY CENTER HE STARTED PHONING OVERSEAS CONTACTS AND BEGAN TRADING WITH COMPANIES IN INDIA ITALY AND EASTERN EUROPE MR DARCHIEV'S SALARY WHICH TRANSLATES TO 400 A MONTH IS RIDICULOUSLY HIGH BY RUSSIAN STANDARDS HE CONCEDES BUT HIS NEW LIFE ENTAILS RISKS THAT HIS OLD ONE DIDN'T IF GOVERNMENT POLICY TURNS AGAINST FREE TRADE OR IF LAWS AREN'T PUT INTO PLACE TO PROTECT INVESTMENT HIS MOVE COULD PROVE DISASTROUS NO REGRETS SO FAR SAYS MR DARCHIEV BUT I COULD USE A BIT MORE EDUCATION ABOUT WHAT I'M DOING WHILE IT TAKES TIME TO BUILD UP LARGESCALE NEW BUSINESSES SMALLSCALE COMMERCE IS BOOMING IN SELECTED AREAS ALL OVER MOSCOW THE SIDEWALKS ARE REGULARLY CLOGGED WITH PEOPLE WHO LINE EACH SIDE HOLDING UP GOODS FOR SALE IMPORTED COLOGNE PERHAPS OR SILVER HEIRLOOMS FROM A FAMILY COLLECTION OR ITEMS THEY MAY HAVE MADE THEMSELVES IN THE SNOW ON LENINSKY STREET STANDS EVGENY STAROV BUNDLED UP IN A THREADBARE COAT AND A BROWN FUR HAT TO SUPPLEMENT HIS PENSION OF 9500 RUBLES THE BURLY RETIRED COAL MINER HAS TAKEN TO KNITTING WOOL SCARVES HE MAKES TWO A MONTH SELLING THEM FOR 8000 RUBLES APIECE IT GETS ME MONEY FOR CIGARETTES AND DRINKS GROWLS MR STAROV STAMPING HIS FEET ON THE SNOW TO KEEP WARM WE DO WHAT WE CAN 9301290067 930129 MARKETING & MEDIA ADVERTISING IBM EXPECTED TO STEP UP STRATEGY OF DIRECT SALES OF PCS VIA GREY BY KEVIN GOLDMAN FOR YEARS BIG BLUE HAD A BIG CHIP ON ITS SHOULDER WHEN IT CAME TO HAWKING ITS PERSONAL COMPUTERS IN LARGE PART INTERNATIONAL BUSINESS MACHINES ESCHEWED SELLING DIRECTLY TO CUSTOMERS UNLIKE ITS UPSTART COMPETITORS INSTEAD IBM OPTED FOR THE TRADITIONAL ROUTE MARKETING ITS PCS THROUGH STORES TODAY HOWEVER IBM IS EXPECTED TO ANNOUNCE THAT IT IS BORROWING A PAGE FROM ITS CLONEMAKING RIVALS BY STEPPING UP ITS DIRECTRESPONSE SALE OF PCS IBM BASED IN ARMONK NY AWARDED THE ASSIGNMENT FOR THE NEW AD BLITZ TO GREY DIRECT A UNIT OF GREY ADVERTISING GREY SAYS THAT ALTHOUGH THE EXPENDITURES AREN'T FINALIZED THE ANNUAL ADVERTISING BUDGET IS EXPECTED TO EXCEED 15 MILLION ONE PERSON CLOSE TO THE SITUATION SAYS IT COULD ULTIMATELY BE AS MUCH AS 30 MILLION IBM DECLINES TO COMMENT ON HOW MUCH IT WILL SPEND THE NEWS CAN'T BE PERCEIVED AS A GOOD SIGN FOR IBM'S TWO INCUMBENT AGENCIES WELLS RICH GREENE BDDP WHICH HANDLES THE CORPORATE ACCOUNT AND INTERPUBLIC GROUP'S LINTAS WHICH HAS THE PRODUCT ASSIGNMENT IBM IS EXPECTED TO NAME A CHIEF EXECUTIVE OFFICER TO SUCCEED JOHN F AKERS BEFORE THE COMPANY'S LATEAPRIL ANNUAL MEETING AND WHEN THERE IS TURNOVER AT THE TOP IT TRICKLES DOWN TO THE ADVERTISING AGENCY AS ANY AGENCY THAT HAS TOILED FOR A CORPORATION IN TURMOIL CAN ATTEST LARRY DEATON A MARKETING DIRECTOR FOR IBM'S PCS SAYS IT WOULD BE WAY PREMATURE TO DISCUSS ANY CHANGES IN ADVERTISING ASSIGNMENTS FURTHER AN IBM SPOKESWOMAN SAYS THAT LINTAS REMAINS THE COMPANY'S AGENCY OF RECORD FOR ITS LINE OF PCS LINTAS EXECUTIVES SAY THE AGENCY HASN'T LOST ANY BUSINESS AND WILL COMPETE WITH OTHER AGENCIES FOR IBM ON A PROJECTBYPROJECT BASIS NEVERTHELESS THE ASSIGNMENT WHICH IS CRITICAL TO IBM'S VIABILITY IN THE HIGHLY COMPETITIVE PC ARENA GIVES GREY A FOOTHOLD AND A CHANCE TO MAKE ITSELF INVALUABLE TO IBM'S NEW LEADERS ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING IBM SPENT A TOTAL OF 611 MILLION ON ADVERTISING THROUGH THE FIRST 10 MONTHS OF 1992 THAT IS A FAR CRY FROM THE 1014 MILLION IT SPENT IN 1988 BUT A HEALTHY INCREASE FROM ITS LOW OF 50 MILLION IN 1991 IN ITS NEW CAMPAIGN WHICH IS EXPECTED TO BEGIN BY MAY IBM WILL PLACE ADS IN COMPUTER MAGAZINES INCLUDING COMPUTER SHOPPER IT WILL ALSO USE RADIO AND LOCAL NEWSPAPERS IN THE TOP 15 MARKETS MR DEATON SAYS THIS ISN'T THE FIRST TIME IBM HAS SOLD ITS PCS THROUGH A TOLLFREE NUMBER A METHOD THAT IT ONCE DISDAINED IBM ADS BEGAN APPEARING LAST OCTOBER IN SOME COMPUTER MAGAZINES AND NEWSPAPERS INCLUDING THE WALL STREET JOURNAL PUBLISHED BY DOW JONES & CO THE DIFFERENCE NOW IS THAT IBM IS RADICALLY TURNING UP THE VOLUME OBVIOUSLY THE CHANGE IN STRATEGY IS THE DESIRE ON IBM'S PART TO BE WHERE THE CUSTOMERS ARE SAYS GEORGE WIEDEMANN CHAIRMAN AND PRESIDENT OF GREY DIRECT ABOUT 25 OF PC SALES ARE THROUGH DIRECTRESPONSE ADVERTISING ANALYSTS SAY IT SHOULDN'T TAKE IBM LONG THESE ANALYSTS ADD TO BECOME A MAJOR FORCE IN THE DIRECTRESPONSE MARKET AND COMPETE AGGRESSIVELY WITH COMPANIES THAT HAVE BEEN IN IT FOR NEARLY A DECADE INCLUDING GIANTS DELL COMPUTER AND GATEWAY 2000 WHEN IBM SLASHED PRICES OF ITS PCS LATE LAST YEAR IT REVERSED ITS IMAGE OF A STODGY OVERPRICED PRODUCT SAYS BRAD SMITH VICE PRESIDENT OF THE PERSONAL COMPUTER GROUP AT DATAQUEST IN SAN JOSE CALIF CUSTOMERS NOW THINK WHY SHOULD THEY BUY A NONAME COMPUTER WHEN IBM HAS A SIMILAR PRICE MR SMITH SAYS IBM HALTED A SLIDE IN ITS PC SALES BY CUTTING PRICES IN OCTOBER AND INTRODUCING A LINE OF LOWCOST MACHINES DUBBED PS/VALUEPOINT ACCORDING TO INFOCORP A SANTA CLARA CALIF COMPANY THAT TRACKS PC UNIT SALES IBM SLID TO A 19 SHARE OF THE MARKET IN THE FOURTH QUARTER OF LAST YEAR BEHIND COMPAQ COMPUTER OF HOUSTON WHICH HAD 20 IN THE FIRST QUARTER OF 1992 IBM HELD A LEAD OF 22 AND COMPAQ HAD 137 BUT WITH ITS COMPETITIVE PRICING IBM IS WELL ON THE WAY TO REESTABLISHING ITSELF SAYS STELLA KELLEY DIRECTOR OF INFOCORP'S STORYBOARD CHANNEL TRACKING SERVICE YOU CAN ALMOST CALL IT A RENAISSANCE FOR IBM IBM AND GREY DECLINED TO COMMENT ON DETAILS OF THE AD CAMPAIGN BUT ACKNOWLEDGED THAT TRYING TO STAND OUT FROM THE SEA OF COMPUTER ADS IS A FORMIDABLE TASK THE ADS WILL EMPLOY A TYPE FACE SIMILAR TO THAT USED IN CURRENT IBM CORPORATE AND PC ADS THE ASSIGNMENT TO GREY FOLLOWED WHAT IS DESCRIBED BY THE AD AGENCY AS A QUIET INFORMAL REVIEW THE REVIEW INCLUDED LINTAS AND CHAPMAN DIRECT A SUBSIDIARY OF YOUNG & RUBICAM INSTEAD OF THE CREATIVE ASPECT OF THE CAMPAIGN THE REVIEW FOCUSED ON STRATEGIC PLANNING MR WIEDEMANN OF GREY DIRECT SAYS THE AIM IS TO MAKE THE MAGAZINE ADS WHICH ARE REALLY MINICATALOGS INTO MINISTORES AND TO TRY TO MAKE SURE THE READER STOPS IN IBM DIDN'T RULE OUT OTHER DIRECTRESPONSE METHODS SUCH AS TELEVISION COMMERCIALS OR EVEN INFOMERCIALS BUT THE COMPANY DECLINED TO DETAIL ITS PLANS PEPSICO'S PEPSICOLA UNIT IS HOOKING UP ITS GLITZY SUPER BOWL COMMERCIALS WITH A TEST OF INTERACTIVE ADVERTISING ON SUNDAY BY QUIZZING SUBSCRIBERS TO A REGIONAL HOMEENTERTAINMENT NETWORK ABOUT PEPSI ADVERTISING RIGHT AFTER THE BIG GAME TEAMING UP WITH PEPSI IN THE EXPERIMENT IS INTERACTIVE NETWORK INC A MOUNTAIN VIEW CALIF COMPANY WHOSE SUBSCRIBERS CAN PLAY ALONG WITH THE SUPER BOWL VIA AN FM RADIO SIGNAL THAT THEY WILL RECEIVE ON A WIRELESS LAPTOP DEVICE EQUIPPED WITH KEYBOARD AND SCREEN SUBSCRIBERS WHO WATCH THE GAME ON REGULAR TV PLAY ALONG BY KEYING IN PREDICTIONS OF THE PLAYS EACH QUARTERBACK WILL CALL PEPSI PLANS TO USE THE OPPORTUNITY TO TEST VIEWERS' RECALL OF ITS ADS SUBSCRIBERS WILL BE ASKED TO ANSWER QUESTIONS ABOUT PEPSI COMMERCIALS AFTER THE GAME IN ADDITION DURING THE GAME PEPSI WILL ALERT INTERACTIVE VIEWERS WHEN ITS COMMERCIALS ARE ABOUT TO AIR A PEPSI SPOKESMAN SAID PEPSI WAS INTERESTED IN TESTING INTERACTIVE ADVERTISING PARTLY BECAUSE OF ITS POTENTIAL AS A RESEARCH TOOL THE TEST WILL ALLOW PEPSI TO MATCH DEMOGRAPHIC INFORMATION ABOUT SUBSCRIBERS WITH THEIR RESPONSES TO QUESTIONS ABOUT THE ADVERTISING THAT'S REALLY WHAT'S ATTRACTIVE TO US THE SPOKESMAN SAID DOWN THE ROAD THAT COULD HELP PEPSI TAILOR ITS ADS TO MARKET SEGMENTS HE SAID AN INTERACTIVE NETWORK SPOKESWOMAN SAID PEPSI DIDN'T PAY TO PARTICIPATE IN THE EXPERIMENT INDUSTRY EXECUTIVES ESTIMATE THE NETWORK'S SUBSCRIBERS AT FEWER THAN 5000 ALTHOUGH THE COMPANY REFUSED TO COMMENT ON THE NUMBER OF ITS SUBSCRIBERS ACQUISITION OMNICOM GROUP ACQUIRED THE MEDICAL ADVERTISING AGENCY HARRISON STAR WIENER & BEITLER TERMS WEREN'T DISCLOSED THOMAS L HARRISON REMAINS PRESIDENT OF THE NEW YORK AGENCY WHICH SAID 1992 BILLINGS WERE 81 MILLION WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON PROMOTED MICHAEL SENNOTT ONE OF TWO REGIONAL DIRECTORS OF EUROPEAN OPERATIONS TO VICE CHAIRMAN AND DIRECTOR OF WORLDWIDE ACCOUNTS MR SENNOTT 51 YEARS OLD BECOMES ONE OF THREE VICE CHAIRMEN AT MCCANN ALONG WITH JOHN BERGIN AND MARCIO MOREIRA MCCANN'S OTHER EUROPEAN REGIONAL DIRECTOR MAX CUSNIR AGE 60 WAS PUT IN SOLE CHARGE OF THE EUROPEAN OPERATIONS WHICH ALSO INCLUDE AFRICA AND THE MIDDLE EAST PLAYBOY ACCOUNT PLAYBOY MAGAZINE TAPPED THE NEW YORK OFFICE OF CME KHBB A UNIT OF SAATCHI & SAATCHI CO AFTER A LONG REVIEW FOR ITS CONSUMERADVERTISING ACCOUNT BILLINGS HAVEN'T BEEN DETERMINED 9301290066 930129 INTERNATIONAL BRIEF USINOR SACILOR SA FRANCE'S STATE STEELMAKER SAYS LOSS NARROWED FOR '92 FRENCH STATECONTROLLED STEELMAKER USINOR SACILOR SA REPORTED THAT IT NARROWED ITS NET LOSS IN 1992 TO 24 BILLION FRANCS 4469 MILLION FROM 31 BILLION FRANCS IN 1991 THE GROUP ONE OF THE WORLD'S LARGEST STEEL COMPANIES BLAMED WORLD ECONOMIC CONDITIONS FOR ITS DIFFICULTIES SAYING THAT IT DOESN'T SEE AN UPTURN IN THE FIRST HALF OF 1993 THE STEEL GROUP SAID IT DOESN'T EXPECT TO SEE THE EFFECT OF A PRICE RISE FOR STEEL UNTIL THE SECOND HALF OF THE YEAR CASH FLOW FELL TO 18 BILLION FRANCS IN 1992 FROM 31 BILLION FRANCS IN THE YEAREARLIER PERIOD THE GROUP SAID THAT GIVEN THE CIRCUMSTANCES IT EXPECTS INDUSTRIAL INVESTMENTS TO SLOW SHARPLY 9301290065 930129 INTERNATIONAL MEXICO'S PLAN TO SELL MEDIA CONCERNS HAS ATTRACTED FOUR INVESTMENT GROUPS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOUR MEXICAN INVESTMENT GROUPS HAVE EMERGED AS PROSPECTIVE BIDDERS FOR A PACKAGE OF GOVERNMENTCONTROLLED MEDIA COMPANIES INCLUDING TWO NATIONAL TELEVISION NETWORKS THE COMPANIES ARE SET TO GO ON THE BLOCK IN A MATTER OF DAYS TERMS OF THE PRIVATIZATION WON'T BE ANNOUNCED UNTIL FEBRUARY BUT THE FINANCE MINISTRY IS ALREADY INTERVIEWING AN ARRAY OF PROSPECTIVE PURCHASERS RANGING FROM RADIO OPERATORS TO COMMERCIAL BANKS AFTER SCREENING OUT THOSE IT THINKS COULDN'T OR SHOULDN'T RUN THE NETWORKS THE GOVERNMENT WILL SELL THE MEDIA COMPANIES IN COMPETITIVE BIDDING PROBABLY BY MAY PROSPECTIVE BUYERS SAY ANALYSTS SAY THE GOVERNMENT COULD RECEIVE AS MUCH AS 500 MILLION FOR THE PACKAGE OF COMPANIES WHICH INCLUDES THE TWO NETWORKS 168 AFFILIATED STATIONS THE NEWSPAPER EL NACIONAL A MOVIETHEATER CHAIN AND A PRODUCTION STUDIO THE WINNING BIDDER WILL EARN THE DUBIOUS PRIVILEDGE OF COMPETING AGAINST GIANT GRUPO TELEVISA SA WHICH CONTROLS 95 OF THE MEXICAN TELEVISION AUDIENCE AMONG THOSE KNOWN TO BE PREPARING BIDS IS A GROUP CONSISTING OF BANCOMER MEXICO'S SECONDLARGEST BANK WHICH IS JOINING WITH ELEKTRA SA THE COUNTRY'S LARGEST CONSUMER ELECTRONICS CHAIN AND ORGANIZACION RADIO CENTRO A LARGE CHAIN OF RADIO STATIONS OTHER PROSPECTIVE BIDDERS INCLUDE A GROUP LED BY RAYMUNDO GOMEZ FLORES A GUADALAJARAN INDUSTRIALIST A GROUP LED BY CLEMENTE SERNA ALVEAR CHIEF OF THE RADIO PROGRAMAS DE MEXICO GROUP AND A GROUP LED BY JOAQUIN VARGAS GOMEZ OWNER OF THE CABLETELEVISION SERVICE MULTIVISION ANALYSTS SAY OTHER DARKHORSE BIDDERS COULD ALSO SURFACE FOREIGN INVESTORS WON'T BE ALLOWED TO BUY THE TELEVISION CONCESSIONS BUT COULD BE INCLUDED AS SUBORDINATE PARTNERS IN THE OPERATING GROUP RICARDO B SALINAS ELEKTRA'S PRESIDENT SAYS HE'S TALKED TO SEVERAL LATIN AMERICAN NETWORKS AS WELL AS TO NEWS CORP'S FOX INC UNIT MULTIVISION SAYS IT HAS ALSO TALKED TO FOX AND TURNER BROADCASTING SYSTEM INC BOTH OF WHICH PROVIDE IT WITH PROGRAMMING NEITHER US COMPANY WOULD COMMENT TELEVISA'S DOMINANCE OF MEXICAN TELEVISION AND ITS CLOSE TIES TO MEXICO'S RULING POLITICAL PARTY HAVE MADE THIS A PARTICULARLY COMPLEX PRIVATIZATION THE PROSPECTIVE BIDDERS SPECULATE THAT THE GOVERNMENT IS PACKAGING THE NETWORKS WITH THE LESS ATTRACTIVE PRINT AND FILM COMPANIES TO CREATE A MULTIMEDIA COMPANY THAT CAN BE A COUNTERWEIGHT TO TELEVISA WHAT'S MORE TELEVISA IS FORTIFYING ITS POSITION EVEN AS THE PRIVATIZATION UNFOLDS TELEVISA IS IN LINE TO RECEIVE CONCESSIONS FOR MORE THAN 60 NEW TELEVISION STATIONS THAT WOULD ALLOW IT TO ADD ANOTHER NATIONAL NETWORK TO THE THREE IT ALREADY HAS BUT THAT HASN'T DETERRED THE INTEREST OF THE FOLLOWING FOUR INVESTMENT GROUPS BANCOMER/ELEKTRA/RADIO CENTRO THE FAMILIES OF ADRIAN AGUIRRE GOMEZ EXECUTIVE PRESIDENT OF ORGANIZACION RADIO CENTRO AND EUGENIO GARZA LAGUERA PRESIDENT OF BANCOMER HAD STAKES IN TWO PRIVATELY OWNED TELEVISION NETWORKS THAT FAILED IN THE 1970S THE PARTNERS THINK A NEW NETWORK CAN FLOURISH TODAY BECAUSE ADVERTISERS AND ARTISTS ARE TIRED OF TELEVISA'S HEGEMONY OVER PROGRAMMING AND AD RATES ELEKTRA'S MR SALINAS GROUP SUCCEEDS HE CONTENDS IT COULD OBTAIN 20 TO 30 OF MEXICO'S TELEVISION ADVERTISING REVENUE WITHIN TWO YEARS RAYMUNDO GOMEZ FLORES THIS SON OF A LAUNDRY OPERATOR HAS RAPIDLY BUILT A BUSINESS EMPIRE WITH INTERESTS RANGING FROM TRUCK MAKING TO FRUIT MARKETING THOUGH MR GOMEZ FLORES ISN'T KNOWN TO HAVE MEDIABUSINESS EXPERIENCE HIS GROUP HAS LOTS OF CASH AND A SUCCESSFUL TRACK RECORD IN PRIVATIZATIONS CLEMENTE SERNA TELEVISA LAST SUMMER PURCHASED THE LARGEST SPANISHLANGUAGE TV NETWORK IN THE US UNIVISION FOILING MR SERNA WHO WAS NEGOTIATING A BUYOUT WITH UNIVISION'S MANAGEMENT MR SERNA HAD HOPED TO USE UNIVISION'S PROGRAMMING TO BOLSTER HIS BID FOR THE PRIVATIZED STATIONS MR SERNA WHO OWNS AN INDEPENDENT TV STATION IN GUADALAJARA HAS SINCE BEGUN BUYING PROGRAMMING FROM TELEMUNDO UNIVISION'S COMPETITOR IN THE US JOAQUIN VARGAS GOMEZ THIS FORMER GAS STATION OPERATOR HAS BUILT A CONGLOMERATE THAT INCLUDES EVERYTHING FROM RESTAURANTS TO RADIO STATIONS WITH PROJECTED REVENUE OF 300 MILLION IN 1993 HIS CROWN JEWEL IS MULTIVISION A WIRELESS CABLE SERVICE THAT HAS ENLISTED 250000 SUBSCRIBERS IN JUST THREE YEARS CHALLENGING TELEVISA'S LONGESTABLISHED CABLE SUBSIDIARY ALONG WITH ITS RELATIONSHIPS WITH FOREIGN ENTERTAINMENT COMPANIES MULTIVISION'S STRENGTH IS ITS STATEOFTHEART TECHNOLOGY 9301290064 930129 BUSINESS BRIEF MAGNETEK INC HOLDERS OF 27 STAKE SEEK REGISTRATION WITH THE SEC MAGNETEK INC LOS ANGELES SAID THREE SHAREHOLDER GROUPS WHO TOGETHER OWN ABOUT A 27 STAKE IN THE COMPANY ASKED THE ELECTRICALEQUIPMENT MAKER TO REGISTER THEIR SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION THE ANNOUNCEMENT WAS ISSUED LATE YESTERDAY AFTER THE CLOSE OF MARKETS MAGNETEK SHARES CLOSED AT 2450 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AFTER THE SEC REGISTRATION THE SHAREHOLDERS MAY SELL THEIR SHARES ON THE OPEN MARKET A MAGNETEK SPOKESMAN SAID THE SHAREHOLDERS' INTENTIONS WEREN'T IMMEDIATELY CLEAR THE SHAREHOLDERS WHO OWN ALMOST EIGHT MILLION MAGNETEK SHARES ARE MAGTEK PARTNERS CHAMPLAIN ASSOCIATES AND WINSTON CAPITAL PARTNERS 9301290063 930129 BUSINESS BRIEF TRINOVA CORP COMPANY TO TAKE A CHARGE OF 702 MILLION IN 1ST PERIOD TRINOVA CORP SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF 702 MILLION OR 248 A SHARE BECAUSE OF AN ACCOUNTING CHANGE THE CHARGE BY TRINOVA BASED IN MAUMEE OHIO IS TO PAY FOR A CHANGE IN THE METHOD OF ACCOUNTING FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS UNDER THE NEW RULE SUCH EXPENSES MUST BE ACCRUED DURING THE EMPLOYEE'S ACTIVE SERVICE TRINOVA MANUFACTURES AND DISTRIBUTES ENGINEERED COMPONENTS AND SYSTEMS FOR INDUSTRY SEPARATELY TRINOVA ELECTED TWO NEW DIRECTORS EXPANDING THE BOARD TO 10 MEMBERS FROM EIGHT THEY ARE DAVID R GOODE THE 52YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORFOLK SOUTHERN CORP AND DELMONT A DAVIS 57 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BALL CORP 9301290062 930129 TECHNOLOGY & MEDICINE IRIDIUM VENTURE HOPES TO COMPLETE FINANCING BY JULY BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL IRIDIUM INC SAID IT EXPECTS TO COMPLETE FINANCING IN THE FIRST HALF OF THIS YEAR FOR ITS AMBITIOUS PLAN TO LAUNCH A 337 BILLION GLOBAL TELECOMMUNICATIONS NETWORK THE COMPANY CURRENTLY OPERATING AS A UNIT OF MOTOROLA INC HADN'T PREVIOUSLY PREDICTED WHEN IT EXPECTED TO OBTAIN FINAL FINANCING FROM ITS 20 PARTNERS IN THE PROJECT EARLY THIS MONTH IT SAID IT REACHED TENTATIVE AGREEMENTS FOR AN ESTIMATED 14 BILLION OF EQUITY FINANCING INCLUDING A 15 EQUITY INTEREST TO BE RETAINED BY MOTOROLA IF COMPLETED THE PRIVATE PLACEMENT WOULD BE ONE OF THE LARGEST IN MODERN TIMES COMPETITORS AND CELLULARPHONE OPERATORS HAVE EXPRESSED SKEPTICISM ABOUT THE EXPENSE OF IRIDIUM SAYING THE PROJECT WAS TOO GOLDPLATED AND MIGHT NOT BE NEEDED AS LANDBASED CELLULARPHONE SYSTEMS EXPAND IN MORE COUNTRIES MOTOROLA ARGUES THAT THE EXPENSIVE TECHNICAL VIRTUOSITY OF ITS SATELLITE SYSTEM IS ITS GREATEST COMPETITIVE ADVANTAGE ALLOWING SUBSCRIBERS TO USE SMALLER HANDHELD PHONES AND RECEIVE CALLS WITHOUT TIME DELAYS OR STATIC THE PROJECT WOULD ESSENTIALLY BE A GLOBAL SEAMLESS PERSONAL COMMUNICATIONS SYSTEM WITH 66 LOWEARTHORBIT SATELLITES SWITCHING VOICE PAGING FACSIMILE AND DATA MESSAGES AMONG EACH OTHER WITHOUT NEEDING LANDBASED STATIONS MOTOROLA HOPES TO START LAUNCHING TEST SATELLITES IN 1996 AND DELIVER COMMERCIAL SERVICE BY 1998 IRIDIUM MADE THE PREDICTION ABOUT FINAL FINANCING AFTER A MEETING IN GENEVA SWITZERLAND OF 18 OF THE 21 INVESTORS THE COMPANY DIDN'T NAME THE COMPANIES BUT SAID THEY WERE LOCATED IN NORTH SOUTH AND CENTRAL AMERICA AND EUROPE ASIA AND THE MIDEAST PREVIOUSLY PEOPLE IN THE INDUSTRY SAID THAT THE BRAZILIAN TELECOMMUNICATIONS COMPANY AND UNITED COMMUNICATIONS CO BANGKOK THAILAND WERE AMONG THE INVESTORS AND THAT DDI CORP OF JAPAN HAD EXPRESSED INTEREST IRIDIUM SAID THE NUMBER OF INVESTORS AND FUNDING LEVEL MAY CHANGE BEFORE FINANCING IS COMPLETED PEOPLE IN THE INDUSTRY SAID THE CURRENT PLAN IS TO FINANCE THE PROJECT WITH 40 EQUITY AND 60 DEBT BUT AN IRIDIUM SPOKESMAN DECLINED TO COMMENT ON THESE DETAILS THE SPOKESMAN SAID THAT AFTER CLOSING THE MAJOR REMAINING CONDITION WOULD BE FOR SEVERAL INVESTORS TO OBTAIN APPROVAL FROM THEIR RESPECTIVE GOVERNMENTS IRIDIUM ALSO NEEDS TO RECEIVE REGULATORY APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION TO OPERATE IN THE US THE FCC IS MULLING OVER A NUMBER OF PROPOSALS AND IS BELIEVED TO BE INTERESTED IN APPROVING TWO COMPETING SYSTEMS BY LATE 1993 OR EARLY 1994 THE IRIDIUM SPOKESMAN DECLINED TO SAY WHETHER THE PROJECT WOULD BE SCRAPPED OR MOVED OFFSHORE IF FCC APPROVAL ISN'T FORTHCOMING 9301290061 930129 BUSINESS BRIEF TELEFONICA SA SPANISH FIRM TO PAY 22 CENTS AS GROSS INTERIM DIVIDEND SPAIN'S SEMISTATE TELECOMMUNICATIONS MONOPOLY TELEFONICA SA SAID IT WILL PAY A GROSS INTERIM DIVIDEND OF 25 PESETAS 22 CENTS A SHARE FOR 1992 UNCHANGED FROM 1991 THE DIVIDEND WHICH HAS A NET AMOUNT OF 1875 PESETAS WILL BE PAID OUT BEGINNING FEB 17 TELEFONICA ALSO REPORTED THAT PROVISIONAL UNCONSOLIDATED NET INCOME ROSE 38 IN 1992 TO 8389 BILLION PESETAS FROM 8090 BILLION PESETAS IN 1991 TELEFONICA CUSTOMARILY REPORTS PROVISIONAL UNCONSOLIDATED PROFIT BEFORE RELEASING CONSOLIDATED EARNINGS IN 1991 TELEFONICA PAID OUT A GROSS INTERIM DIVIDEND OF 25 PESETAS AND A GROSS FINAL DIVIDEND OF 34 PESETAS INCREASING ITS DIVIDEND BY 73 FROM 1990 DIVIDEND PAYMENTS IT WAS THE FIRST TIME THE TELECOMMUNICATIONS COMPANY HAD CHANGED ITS DIVIDEND IN MORE THAN 10 YEARS ALLOWING THE PAYMENTS TO RISE WITH PROFITS AS PART OF A NEW POLICY 9301290060 930129 BUSINESS BRIEF WEATHERFORD INTERNATIONAL INC PURCHASE OF WR GRACE UNIT HOMCO INTERNATIONAL IS SET WEATHERFORD INTERNATIONAL INC AGREED TO BUY HOMCO INTERNATIONAL A UNIT OF WR GRACE FOR 975 MILLION AND CERTAIN LIABILITIES INCREASING ITS SIZE BY ABOUT 50 HOMCO IS AN OIL FIELD SERVICES COMPANY WITH OPERATIONS THAT INCLUDE RENTAL TOOL AND FISHING SERVICESRETRIEVING LOST EQUIPMENT IN OIL AND GAS WELLS HOUSTONBASED WEATHERFORD MANUFACTURES AND SELLS SPECIALIZED OIL FIELD EQUIPMENT AND ALSO PROVIDES FISHING SERVICES TO THE OIL AND GAS INDUSTRY SELLING HOMCO IS PART OF WR GRACE'S STRATEGY TO EXIT FROM ITS ENERGY BUSINESS SAID JP BOLDUC GRACE PRESIDENT AND CHIEF EXECUTIVE OFFICER HOMCO HAD REVENUE FOR 1992 OF ABOUT 120 MILLION AND WEATHERFORD ESTIMATES ITS 1992 REVENUE AT 205 MILLION THE TRANSACTION SUBJECT TO CERTAIN CONDITIONS IN ADDITION TO ANTITRUST CLEARANCE IS EXPECTED TO BE COMPLETED BY EARLY APRIL 9301290059 930129 BUSINESS BRIEF ROBERT BOSCH GMBH DIFFICULT 1993 IS EXPECTED AFTER PROFIT DECLINE OF 1992 ROBERT BOSCH GMBH A LARGE CLOSELY HELD GERMAN ELECTRONICS GROUP CONCEDED THAT IT FACES A MISERABLE FIRST QUARTER AND THAT 1993 WILL BE A DIFFICULT YEAR THE COMPANY SAID LAST YEAR'S EARNINGS DECLINED ON WORLDWIDE SALES THAT INCHED ONLY 22 HIGHER FROM THE PREVIOUS YEAR THE AMOUNT OF THE EARNINGS DECLINE WASN'T DISCLOSED IT WAS THE SECOND CONSECUTIVE YEAR OF DECLINING PROFITS AT THE GROUP CHAIRMAN MARCUS BIERICH SAID WEAK MARKETS HAVE FORCED THE GROUP TO RESORT TO SHORTENED WORK SHIFTS EFFECTIVELY CUTTING BACK THE NUMBER OF WORKDAYS FOR CERTAIN EMPLOYEES THE 22 PACE OF LAST YEAR'S SALES GROWTH MARKING A GAIN OF 800 MILLION DEUTSCHE MARKS 5046 MILLION TO 344 BILLION MARKS 2170 BILLION REPRESENTS A SLOWDOWN FROM THE 56 SALES GROWTH IN 1991 WHEN THE GROUP REPORTED 336 BILLION MARKS IN REVENUE 9301290058 930129 SOME MAJOR AMERICAN EXPRESS HOLDERS VOICE DISAPPOINTMENT ABOUT ROBINSON BY SUSAN PULLIAM AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO'S MAJOR INSTITUTIONAL SHAREHOLDERS MET YESTERDAY WITH NEWLY APPOINTED CHIEF EXECUTIVE OFFICER HARVEY GOLUB IN PART TO EXPRESS THEIR DISAPPOINTMENT THAT THE COMPANY'S BOARD DECIDED TO KEEP JAMES D ROBINSON III AS CHAIRMAN ACCORDING TO SEVERAL OF THE SHAREHOLDERS WHO ATTENDED A BREAKFAST MEETING AT THE COMPANY'S NEW YORK HEADQUARTERS THE SESSION WAS HASTILY ORGANIZED AT THE BEHEST OF BIG HOLDERS THEY HAVE WATCHED ITS STOCK PRICE TUMBLE SINCE MONDAY WHEN AMERICAN EXPRESS'S BOARD ANNOUNCED THAT IT WAS RETAINING MR ROBINSON AS CHAIRMAN AND NAMING HIS HANDPICKED SUCCESSOR MR GOLUB AS CHIEF EXECUTIVE AN AMERICAN EXPRESS SPOKESMAN SAID THE MEETING WAS CALLED TO GIVE THE LATEST INFORMATION TO ITS LARGEST SHAREHOLDERS HE ADDED THAT IT WAS ONE OF THE COMPANY'S PERIODIC MEETINGS WITH INSTITUTIONAL INVESTORS AND THAT IT WASN'T UNUSUAL FOR THE COMPANY TO ORGANIZE IT SEVERAL OF THE MAJOR INVESTORS WHO ATTENDED THE MEETING SAID IT WAS SPECIFICALLY ORGANIZED SO THAT THEY COULD EXPRESS THEIR DISPLEASURE WITH THE COMPANY IN THE WORDS OF ONE PARTICIPANT WHO DECLINED TO BE NAMED ANOTHER PARTICIPANT SAID THE INVESTORS WERE PLEASED WITH MR GOLUB'S PROMOTION BUT EXPRESSED DISAPPOINTMENT THAT THE BOARD KEPT MR ROBINSON AS CHAIRMAN THE DOZEN INSTITUTIONAL HOLDERS AT THE MEETING REPRESENT ABOUT 20 OF AMERICAN EXPRESS'S COMMON STOCK OUTSTANDING AMONG THOSE SAID TO HAVE BEEN AT THE MEETING WERE REPRESENTATIVES OF ALLIANCE CAPITAL MANAGEMENT PUTNAM MANAGEMENT CO AND JP MORGAN INVESTMENT MANAGEMENT OFFICIALS AT THOSE FIRMS DECLINED TO COMMENT MR ROBINSON WAS UNAVAILABLE FOR COMMENT BUT A SPOKESMAN SAID THE RECENT MANAGEMENT APPOINTMENTS WERE DRIVEN BY THE COMPANY'S BUSINESS NEEDS AND THAT THE STRATEGIES IMPLEMENTED ARE DESIGNED TO BUILD LONGTERM VALUE TO SHAREHOLDERS THE CRITICISM OF MR ROBINSON ECHOES COMMENTS MADE EARLIER THIS WEEK BY WALL STREET ANALYSTS AND INSTITUTIONAL INVESTORS WHO SAID THEY WERE DISAPPOINTED BOTH WITH THE COMPANY'S EARNINGS AND WITH THE BOARD'S UNWILLINGNESS TO FIND A NEW CHAIRMAN MANY OF THEM HAVE EXPRESSED ANGER THAT MR ROBINSON REMAINED AT THE HELM AT A TIME WHEN CHAIRMEN AT SEVERAL COMPANIES SUCH AS GENERAL MOTORS CORP AND WESTINGHOUSE ELECTRIC CORP HAVE STEPPED DOWN OR BEEN PUSHED OUT BY DIRECTORS INSTITUTIONAL HOLDERS SAID THEY WEREN'T SATISFIED WITH MR GOLUB'S RESPONSE TO THEIR CONCERNS ABOUT THE STOCK PRICE AND RECENT EVENTS AT THE COMPANY ALTHOUGH THEY WOULDN'T ELABORATE IN SPEAKING TO THE GROUP MR GOLUB EMPHASIZED THAT HE WAS IN CHARGE SAID ONE ATTENDEE THE COMPANY SPOKESMAN SAID MR GOLUB TALKED ABOUT THE APPOINTMENTS AND GAVE AN UPDATE OF THE STRATEGIES GOING FORWARD SINCE FRIDAY'S CLOSE THE MARKET VALUE OF THE COMPANY'S STOCK HAS PLUNGED ALMOST 13 ON MONDAY AMERICAN EXPRESS ALSO ANNOUNCED WEAKERTHANEXPECTED FOURTH QUARTER EARNINGS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK WAS FIFTH MOST ACTIVE ISSUE ON VOLUME OF 36 MILLION SHARES IT CLOSED AT 22375 DOWN 625 CENTS 9301290057 930129 ONTARIO HYDRO HALTS PLANNED CONSTRUCTION OF TRANSMISSION LINES TORONTO ONTARIO HYDRO ONE OF NORTH AMERICA'S LARGEST UTILITIES SAID IT PLANS TO SAVE ABOUT 1 BILLION CANADIAN DOLLARS US7886 MILLION BY CANCELING ITS PLAN TO BUILD NEW TRANSMISSION LINES BETWEEN TORONTO AND THE CITY OF SUDBURY IN THE NORTHERN PART OF THE PROVINCE OF ONTARIO THE ANNOUNCEMENT COMES ABOUT A MONTH AFTER THE STATEOWNED UTILITY SAID IT WILL DROP AN C11 BILLION PLAN TO BUY ELECTRICITY FROM THE NEIGBORING CANADIAN PROVINCE OF MANITOBA BOTH STEPS ARE PART OF ONTARIO HYDRO'S ATTEMPTS TO COME TO GRIPS WITH RAPIDLY ESCALATING ELECTRICITY RATES IN THE PROVINCE AS DEMAND CONTINUES TO FALL THE DECISION TO CANCEL THIS PROJECT IS ANOTHER EXAMPLE OF OUR CONTINUING EFFORTS TO REDUCE COSTS AND MINIMIZE FUTURE RATE INCREASES SAID MAURICE STRONG NEWLYAPPOINTED CHAIRMAN OF ONTARIO HYDRO THE UTILITY SAID THE CANCELATION OF THE MANITOBA PURCHASE AGREEMENT TOGETHER WITH ITS DECISION TO CUT BACK ON A NUMBER OF INDEPENDENT POWER PROJECTS BY PRIVATE COMPANIES AND INDIVIDUALS AS WELL AS THE DEFERRAL OF SEVERAL HYDRO PROJECTS IN NORTHERN ONTARIO LED TO THE DEMISE OF THE TRANSMISSION PROJECT THE VENTURE HAD INCLUDED PLANS TO BUILD 500KILOVOLT TRANSMISSION LINES AND ADD NEW TRANSFORMER FACILITIES TO EXISTING TRANSMISSION FACILITIES ONTARIO HYDRO SAID IT IS STUDYING OTHER WAYS TO MEET ANY INCREASE IN THE DEMAND FOR ELECTRICITY IN THE REGION THE UTILITY WHICH HAS ABOUT C40 BILLION IN ASSETS AND C363 BILLION OF DEBT RAISED RATES 118 IN 1992 AND 86 IN 1991 AROUSING ANGER AMONG MANUFACTURERS BUSINESSES AND RESIDENTIAL USERS IT RECENTLY HALTED A LONG ENVIRONMENTAL ASSESSMENT PROCESS LAUNCHED THREE YEARS AGO TO STUDY ITS EARLIER PLAN TO BUILD ABOUT C100 BILLION OF NEW GENERATING FACILITIES BY 2014 SAYING THAT IT NO LONGER NEEDS TO GO AHEAD WITH ANY OF THE PLANNED MEGAPROJECTS ONTARIO HYDRO HAD SPENT ABOUT C57 MILLION ON THE ASSESSMENT THE CANCELATION OF THE HEARINGS SHOULD SAVE THE UTILITY ABOUT C30 MILLION IT SAID 9301290056 930129 WESTINGHOUSE UNIT'S LAYOFFS PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID ITS WESTINGHOUSE FINANCIAL SERVICES INC UNIT IS LAYING OFF 125 OF ITS 385 EMPLOYEES AND CLOSING ITS IRVING TEXAS OFFICE A SPOKESMAN SAID THE MOVES RESULTED FROM AN EARLIER DECISION TO SELL THE UNIT'S LOAN PORTFOLIO OVER THREE YEARS DURING THE FOURTH QUARTER THE COMPANY SOLD MORE THAN 600 MILLION IN LOANS FROM THE PORTFOLIO WHICH HAD A BOOK VALUE AFTER RESERVES OF 41 BILLION ON SEPT 30 THE SPOKESMAN SAID THE EMPLOYEES WILL RECEIVE AT LEAST A YEAR'S SEVERANCE PAY AND THAT THE COMPANY HAS ALREADY TAKEN CHARGES TO REFLECT SEVERANCE PAYMENTS AND OTHER COSTS OF THE LAYOFFS WHICH ARE EFFECTIVE FEB 10 9301290055 930129 WHO'S NEWS NATIONAL PIZZA CO NATIONAL PIZZA CO PITTSBURG KAN J MITCHELL BOYD 54 YEARS OLD WAS NAMED A DIRECTOR OF THIS RESTAURANT FRANCHISER AND OPERATOR THE COMPANY SAID HE SUCCEEDS JJ FITZSIMMONS 44 WHO RECENTLY RESIGNED TO PURSUE OTHER OPPORTUNITIES 9301290054 930129 BUSINESS BRIEF ZENITH NATIONAL INSURANCE CORP TWO UNITS AGREE TO REFUND 186 MILLION IN PREMIUMS ZENITH NATIONAL INSURANCE CORP WOODLAND HILLS CALIF SAID TWO OF ITS UNITS AGREED TO PAY 186 MILLION IN INSURANCE PREMIUM REFUNDS MANDATED BY THE PASSAGE OF A 1988 INSURANCE INITIATIVE BY CALIFORNIA VOTERS ZENITH SAID IT EXPECTS THE REFUND TO RESULT IN A FOURTHQUARTER CHARGE OF ABOUT 105 MILLION OR 56 CENTS A SHARE THE ONETIME CHARGE WILL CAUSE A NET LOSS FOR THE QUARTER THE COMPANY SAID ZENITH SAID ITS FOURTHQUARTER RESULTS ALSO WILL REFLECT CHARGES FOR THE ADOPTION OF NEW ACCOUNTING STANDARDS FOR INCOME TAXES ZENITH EXPECTS TO REPORTS ITS YEAREND RESULTS EARLY NEXT MONTH IN THE FOURTH QUARTER OF 1991 ZENITH REPORTED NET INCOME OF 83 MILLION OR 44 CENTS A SHARE ZENITH SAID ITS CALFARM INSURANCE CO AND ZENITH INSURANCE CO UNITS WILL REFUND TO POLICYHOLDERS 95 OF PREMIUMS FOR POLICIES ISSUED OR RENEWED BETWEEN NOV 8 1988 AND NOV 8 1989 THE VOTERAPPROVED INITIATIVE MANDATED A ROLLBACK OF INSURANCE RATES AND ORDERED REFUNDS OF PREMIUMS 9301290053 930129 RUMOR ABOUT TRIAL OF SYNERGEN DRUG APPEARS TO BE HOAX BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL A RUMOR THAT SPREAD ON WALL STREET THIS WEEK OF POOR RESULTS IN THE CLINICAL TRIAL ON SYNERGEN INC'S LEAD DRUG CAUSING THE COMPANY'S STOCK TO DROP 9 IN TWO DAYS APPEARS TO HAVE ORIGINATED WITH A HOAX SEVERAL ANALYSTS SAID THEY WERE TOLD BY TELEPHONE ON TUESDAY BY PEOPLE CLAIMING TO HAVE KNOWLEDGE OF THE TRIAL RESULTS THAT THE PHASE III STUDY OF ANTRIL WHICH SYNERGEN IS TESTING FOR USE AGAINST SEPTIC SHOCK SHOWED THE DRUG WAS INEFFECTIVE WORD QUICKLY SPREAD THROUGH THE INVESTMENT COMMUNITY AND THE DENVER BIOTECHNOLOGY COMPANY'S STOCK FELL 425 ON TUESDAY TO 5675 A SHARE AND LOST 1 ON WEDNESDAY TO END AT 5575 IN NATIONAL OVERTHECOUNTER TRADING VOLUME ON BOTH DAYS WAS THREE TO FIVE TIMES ITS USUAL LEVEL IN TRADING YESTERDAY THE STOCK REBOUNDED 175 TO CLOSE AT 5750 A SHARE EVAN STURZA OF STURZA'S MEDICAL INVESTMENT LETTER IN NEW YORK WHO WAS FIRST QUOTED IN THE DENVER POST ABOUT THE APPARENT HOAX SAID A MAN IDENTIFYING HIMSELF AS DR BOB MILLER CALLED HIM TUESDAY AFTERNOON AND TOLD HIM ANTRIL DOESN'T WORK MR STURZA SAID THE MAN ALSO CLAIMED TO BE ONE OF THE COLLABORATORS IN A SYNERGENSPONSORED INVESTIGATION OF ANTRIL AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES AND REFERRED TO DETAILS SUCH AS THE SIZE OF THE UCLA SAMPLE WHICH WERE ACCURATE BUT MR STURZA SAID HE BECAME SUSPICIOUS WHEN THE CALLER SUGGESTED THAT THE PLACEBO AND THE DRUG WEREN'T IDENTICAL IN APPEARANCE A STATEMENT HE KNEW TO BE UNTRUE SOME OF THE THINGS HE SAID DIDN'T MAKE SENSE MR STURZA SAID HE CALLED THE UNIVERSITY AND CONFIRMED THAT NO ONE NAMED DR MILLER WORKED THERE BEFORE SENDING HIS SUBSCRIBERS A FAX UPDATE TO QUELL WORRIES ANOTHER ANALYST FRANKLIN BERGER OF JOSEPHTHAL LYON & ROSS IN NEW YORK SAID AN UNIDENTIFIED CALLER FROM NEW ORLEANS TOLD HIM ON TUESDAY THAT THE DRUG PROVED TO BE A FAILURE BECAUSE PEOPLE IN THE TRIAL WERE EXPERIENCING ORGAN FAILURE WHICH MR BERGER SAID IS COMMON AMONG SEPTIC SHOCK PATIENTS THE COMPANY MOVED QUICKLY ON TUESDAY RELEASING A STATEMENT WHICH SAID IT IS STILL IMPOSSIBLE TO JUDGE THE SAFETY AND EFFECTIVENESS OF ANTRIL BECAUSE THE STUDY WHICH ENDED IN EARLY DECEMBER IS STILL BLINDED MEANING THAT IS HASN'T BEEN DISCLOSED WHICH PATIENTS RECEIVED THE DRUG AND WHICH RECEIVED A PLACEBO PAUL LALAND A COMPANY SPOKESMAN SAID SYNERGEN EXPECTS TO RELEASE DATA FROM THE TRIAL IN MARCH OR APRIL MR LALAND SAID SYNERGEN IS COLLECTING AND REVIEWING FACTS ABOUT THE HOAX AND DECIDING WHETHER TO TAKE ACTION HE SAID HE DIDN'T KNOW WHETHER THE COMPANY WOULD ASK THE SECURITIES AND EXCHANGE COMMISSION TO INVESTIGATE THE MATTER ANALYSTS SAID THEY SUSPECT THE CALLER OR CALLERS WHO SPREAD THE RUMOR WERE AIDING SHORT SELLERS SHORT SELLERS BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER THOUGH ANALYSTS OFTEN RECEIVE FALSE INFORMATION MR STURZA SAID IT'S LESS COMMON FOR SUCH RUMORS TO PRODUCE THE PROFITS THAT WERE PROBABLY REAPED ON TUESDAY AND WEDNESDAY GENERAL NERVOUSNESS ABOUT BIOTECHNOLOGY STOCKS MAY HAVE FED THE MARKET FRENZY ANALYSTS SAID 9301290052 930129 BUSINESS BRIEF CACI INTERNATIONAL INC PACT WITH BIGGEST HOLDER TO INCREASE SIZE OF BOARD CACI INTERNATIONAL INC AN ARLINGTON VA INFORMATION SYSTEMS AND HIGH TECHNOLOGY SERVICES COMPANY SAID IT REACHED AN AGREEMENT WITH ITS LARGEST SHAREHOLDER TO INCREASE THE SIZE OF THE BOARD TO EIGHT FROM SEVEN MEMBERS UNDER THE AGREEMENT ALAN PARSOW WHO HOLDS AN 11 INTEREST IN CACI WILL NAME FOUR MEMBERS TO THE BOARD THREE INCUMBENT MEMBERS ARE EXPECTED TO BE RETAINED AND THE COMPANY'S NOMINATING COMMITTEE WILL NAME A NEW MEMBER IN ADDITION A NINTH BOARD MEMBER MAY BE ADDED IF CERTAIN PENDING SHAREHOLDER LITIGATION IS SETTLED IN TIME TO MAKE THAT CHANGE THE COMPANY SAID MR PARSOW HAS AGREED TO STANDSTILL PROVISIONS BUT IT DECLINED TO DISCUSS DETAILS 9301290051 930129 BUSINESS BRIEF CARL KARCHER ENTERPRISES INC CORPORATE STAFF TO BE CUT BY 14 TO REDUCE EXPENSES CARL KARCHER ENTERPRISES INC SAID IT PLANS TO CUT ABOUT 14 OF ITS 460 CORPORATE STAFF JOBS AS PART OF A PLAN TO REDUCE EXPENSES BY AS MUCH AS 10 MILLION OVER THE NEXT YEAR WE HAVE A MANDATE FROM THE BOARD TO INCREASE PROFITABILITY SAID DONALD E DOYLE THE ANAHEIM CALIF FASTFOOD CHAIN'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY HAS A TOTAL OF ABOUT 14000 EMPLOYEES MR DOYLE WAS NAMED CHIEF EXECUTIVE LAST MONTH SUCCEEDING FOUNDER CARL N KARCHER WHO REMAINS CHAIRMAN THE TRANSITION FOLLOWED IN THE WAKE OF A SPECIAL BOARD COMMITTEE'S REJECTION OF MR KARCHER'S BID TO TAKE THE COMPANY PRIVATE 9301290050 930129 BUSINESS BRIEF ACTION AUTO RENTAL INC PROTECTION UNDER CHAPTER 11 IS SOUGHT AFTER GMAC SUIT ACTION AUTO RENTAL INC FACING AN IMPASSE IN DEBT RESTRUCTURING NEGOTIATIONS WITH GENERAL MOTORS ACCEPTANCE CORP FILED FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE THE GENERAL MOTORS CORP FINANCE UNIT SAID IT FILED SUIT AGAINST ACTION AUTO IN DECEMBER TO COLLECT ITS DEBT OF ABOUT 62 MILLION ACTION AUTO PRESIDENT AND CHIEF EXECUTIVE OFFICER CRAIG E HONS SAID THE COMPANY HAD NO CHOICE BUT TO FILE FOR BANKRUPTCY PROTECTION BECAUSE GMAC ASKED THE COURTS TO GIVE IT CONTROL OF ACTION AUTO'S FLEET OF CARS IF APPROVED GMAC CONTROL OF THE FLEET WOULD LEAVE US WITH NO VIABLE WAY OF CONDUCTING BUSINESS HE SAID MR HONS SAID THE COMPANY HAS MADE PROGRESS IN CUTTING PREVIOUS OPERATING LOSSES AND NOTED THAT THE THIRD QUARTER LOSS OF 974000 MILLION WAS AN 85 REDUCTION FROM THE YEARAGO PERIOD IT HAS ALWAYS BEEN OUR SINCERE DESIRE TO COME TO A CONSENSUAL AGREEMENT WITH GMAC AND KEEP THIS OUTSIDE OF THE COURTS HE SAID 9301290049 930129 BUSINESS BRIEF BERLITZ INTERNATIONAL INC SHAREHOLDERS APPROVE SALE OF 67 STAKE TO FUTUTAKE BERLITZ INTERNATIONAL INC SAID SHAREHOLDERS APPROVED THE SALE OF A 67 STAKE IN THE PRINCETON NJ LANGUAGESERVICES COMPANY TO JAPAN'S FUTUTAKE PUBLISHING CO THE SALE IS SCHEDULED TO TAKE PLACE FEB 8 SHAREHOLDER APPROVAL CAME AS US BANKRUPTCY COURT IN NEW YORK APPROVED A LEGAL DISENGAGEMENT BETWEEN THE COMPANY AND MAXWELL COMMUNICATION CORP AS A CONDITION OF THE DISENGAGEMENT MACMILLAN INC A UNIT OF MAXWELL WILL TRANSFER ALL OF THE OUTSTANDING 180000 BERLITZ PREFERRED SHARES IT HOLDS BACK TO BERLITZ BERLITZ MAXWELL AND MACMILLAN ALSO AGREED TO MODIFY OR WAIVE CERTAIN CLAIMS AGAINST EACH OTHER BY THE TERMS OF THE MERGER FUTUTAKE WILL HAVE A 67 STAKE IN BERLITZ WITH EXISTING SHAREHOLDERS HOLDING ABOUT 33 OF NEW BERLITZ COMMON TO BE ISSUED 9301290048 930129 BUSINESS BRIEF NATIONAL INTERGROUP INC FIRM POSTS LOSS FOR PERIOD CITING PHARMOR PROBLEMS NATIONAL INTERGROUP INC SUFFERING THE RIPPLE EFFECTS OF PHARMOR INC'S BANKRUPTCY FILING REPORTED A LOSS OF 154 MILLION OR 85 CENTS A SHARE IN ITS FISCAL THIRD QUARTER IN THE YEAREARLIER PERIOD THE COMPANY POSTED NET INCOME OF 737000 OR A THREECENTASHARE LOSS AFTER PREFERRED DIVIDENDS SALES AT THE DALLASBASED COMPANY SOARED 49 TO 13 BILLION IN THE QUARTER ENDED DEC 31 FROM 8715 MILLION A YEAR EARLIER BOLSTERED BY A BIG SALES INCREASE FROM THE COMPANY'S 805OWNED FOXMEYER CORP ABOUT HALF OF FOXMEYER'S SALES INCREASE IN TURN STEMMED FROM ITS MAY 1992 ACQUISITION OF HARRIS WHOLESALE CO WHICH LIKE FOXMEYER IS A WHOLESALE DRUG DISTRIBUTOR BUT FOXMEYER'S EARNINGS WERE HAMMERED BY A ONETIME CHARGE OF 428 MILLION IN THE THIRD QUARTER MOSTLY TO COVER UNPAID BILLS FROM PHARMOR A YOUNGSTOWN OHIO DISCOUNT RETAILER AND MAJOR CUSTOMER THAT LAST YEAR FILED FOR FEDERAL BANKRUPTCY COURT PROTECTION AFTER TWO TOP EXECUTIVES WERE ACCUSED OF EMBEZZLEMENT FOR ITS FISCAL THIRD QUARTER FOXMEYER REPORTED A LOSS OF 177 MILLION OR 61 CENTS A SHARE AGAINST YEAREARLIER PROFIT OF 102 MILLION OR 42 CENTS A SHARE 9301290047 930129 HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1009 ADULTS 829 OF THEM REGISTERED VOTERS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTIGUOUS US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY INCOME AGE AND RACE TO ASSURE THAT THE POLL ACCURATELY REFLECTS ADULTS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 31 PERCENTAGE POINTS IN EITHER DIRECTION THE MARGIN FOR A SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP 9301290046 930129 WHAT'S NEWS BUSINESS AND FINANCE ECONOMIC GROWTH ACCELERATED IN THE FOURTH QUARTER TO AN ANNUAL RATE OF 38 THE GROWTH THOUGH STILL SLUGGISH WAS THE FASTEST IN FOUR YEARS IT WAS LED BY A CONSUMER BUYING BINGE BUT TREASURY CHIEF BENTSEN CAUTIONED AGAINST ELATION OVER THE GROWTH DATA THE WHITE HOUSE PLANS TO ASK CONGRESS TO QUICKLY APPROVE SPENDING TO BOOST THE ECONOMY LEAVING AN INVESTMENT CREDIT AND DEFICIT REDUCTION FOR LATER GREENSPAN MEANWHILE SUGGESTED CUTTING THE DEFICIT WOULD HELP THE ECONOMY MORE THAN ANY STIMULUS AT&T'S PROFIT INCREASED 57 IN THE FOURTH QUARTER HELPED BY STRONG PRODUCT SALES BUT COMPETITION HELD DOWN GROWTH IN LONGDISTANCE REVENUE CHRYSLER REPORTED BETTERTHANEXPECTED FOURTHQUARTER PROFIT ITS BEST QUARTERLY RESULTS IN FOUR YEARS AND FOLLOWED FORD'S MOVE TO RAISE CAR PRICES IN THE MIDDLE OF THE MODEL YEAR BLUECHIP STOCKS ADVANCED BUT THE OVERTHECOUNTER MARKET SLUMPED FURTHER BOND PRICES RALLIED WHILE THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIALS CLIMBED 1486 POINTS TREASURY BOND PRICES WERE UP A HALFPOINT A SOFTWARE COMPANY IS WORKING WITH APPLE MOTOROLA SONY AND IBM TO DEVELOP SOFTWARE THAT WOULD ALLOW DIFFERENT KINDS OF WIRELESS PORTABLE COMPUTERS TO TALK TO EACH OTHER CELLULAR PHONE DEALERS SAY A HIGHLY PUBLICIZED HEALTH SCARE THAT BATTERED CELLULAR STOCKS IS STARTING TO HURT SALES OF THE DEVICES MCCAW MEANWHILE IS COMMISSIONING A STUDY ON THE ISSUE SOME EUROPEAN OIL COMPANIES ARE NEGOTIATING SECRET CONTRACTS WITH IRAQ TO TAP ITS PETROLEUM RESERVES AFTER INTERNATIONAL SANCTIONS ARE LIFTED IRAQI BUSINESSMEN AND UN OFFICIALS SAY OIL PRICES SURGED ON THE INTRODUCTION IN CONGRESS OF A PROPOSAL TO LEVY A VARIABLE FEE ON US OIL IMPORTS TIME WARNER SEVERED ITS TIES WITH ICET ONLY MONTHS AFTER DEFENDING THE RAP ARTIST'S SONG COP KILLER DELTA AIR UAL AND CONTINENTAL AIR POSTED LOSSES FOR THE LATEST QUARTER DELTA ALSO SLASHED ITS DIVIDEND AND DISCLOSED THE RETIREMENT OF ITS PRESIDENT AMERICAN EXPRESS'S MAJOR INSTITUTIONAL SHAREHOLDERS MET WITH NEW CEO HARVEY GOLUB IN PART TO EXPRESS THEIR DISAPPOINTMENT THAT JAMES ROBINSON IS STILL THE COMPANY'S CHAIRMAN THE CHICAGO BOARD OPTIONS EXCHANGE PLANS TO TRADE CUSTOMIZED OPTIONS THAT WOULD FOR THE FIRST TIME LET SMALL INVESTORS DESIGN THEIR OWN HEDGES AGAINST STOCK PRICE SWINGS PENSION FUNDS SHARPLY INCREASED THEIR INVESTMENTS IN FOREIGN STOCK MARKETS LAST YEAR A SURVEY FOUND MORTGAGE RATES FELL BELOW 8 FOR THE FIRST TIME SINCE OCTOBER FUELING INCREASES IN REFINANCING APPLICATIONS LAWYERS ARE BARRED FROM TAKING NONREFUNDABLE ADVANCE FEES FROM CLIENTS A NEW YORK COURT RULED BONDS LEHMAN BROTHERS TREASURY INDEX 483034 UP 2600 COMMODITIES OIL 2041 A BARREL UP 75 CENTS DOW JONES FUTURES INDEX 12133 UP 025 SPOT INDEX 12131 UP 014 DOLLAR 12420 YEN UP 010 15861 MARKS OFF 00040 9301290045 930129 COMMODITIES WORLD OIL PRICES SURGE IN VOLATILE TRADING TIED TO SENATE PROPOSAL TO LEVY FEE ON US IMPORTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD PETROLEUM PRICES SURGED ON FRENZIED BUYING TRIGGERED BY A PROPOSAL IN CONGRESS TO LEVY A VARIABLE FEE ON US OIL IMPORTS THE LEGISLATION INTRODUCED IN THE SENATE BY BENNETT JOHNSTON D LA CHAIRMAN OF THE SENATE ENERGY COMMITTEE PROPOSED A FLOOR OF 25 FOR OIL ENTERING THE US WHENEVER THE PRICE OF IMPORTED OIL FELL BELOW THAT FIGURE AN IMPORT FEE WOULD BE APPLIED EQUAL TO THE DIFFERENCE THE LEGISLATION INTRODUCED IN THE SENATE BY BENNETT JOHNSTON D LA CHAIRMAN OF THE SENATE ENERGY COMMITTEE PROPOSED A FLOOR OF 25 FOR OIL USED IN THE US WHENEVER THE PRICE OF IMPORTED OIL FELL BELOW THAT FIGURE AN IMPORT FEE WOULD BE APPLIED EQUAL TO THE DIFFERENCE CRUDE OIL AND FUEL PRICES ALREADY HAD BEGUN MOVING UP IN MOST OF THE WORLD'S OIL MARKETS ON TECHNICALLYDRIVEN TRADING BUT THE CHIEF CATALYST FOR YESTERDAY AFTERNOON'S FRANTIC BUYING WAS THE NEWS OF THE OILIMPORT FEE BILL THE NEWS LIT A FUSE IN THE NEW YORK ENERGYFUTURES TRADING PITS WHERE TRADING VOLUME IN CRUDE OIL HIT A RECORD 189469 CONTRACTS AND TRADING IN HEATING OIL TOTALED A RECORD 67129 CONTRACTS TRADERS ON THE NEW YORK MERCANTILE EXCHANGE SAID THE ACTIVITY WAS THE MOST VOLATILE THE PITS HAD SEEN SINCE THE GULF WAR BUT SEVERAL TRADERS SAID THE ACTIVITY WASN'T REALLY WARRANTED THEY SAID TRADERS SEEMED TO BE MAKING MORE OUT OF THE OILIMPORT FEE REPORT THAN WAS MERITED SIMPLY TO CREATE A VOLATILE ENVIRONMENT IN AN OTHERWISE LISTLESS MARKET ALTHOUGH MANY OIL ANALYSTS WERE SKEPTICAL THAT ANY SUCH LEGISLATION WOULD EVER BECOME LAW PETROLEUM FUTURES SPIKED SHARPLY HIGHER ON THE NEW YORK MERCANTILE EXCHANGE IN RECORD TRADING LIGHT LOWSULFUR CRUDE OIL FOR NEARMONTH DELIVERY BROKE THROUGH 20 A BARREL FOR THE FIRST TIME SINCE NOVEMBER AND THEN PEAKED AT 2075 A BARREL BEFORE FALLING BACK SOME THE MARCH CRUDE CONTRACT SETTLED AT 2041 UP 75 CENTS FOR THE DAY THE APRIL CONTRACT ROSE 71 CENTS TO 2043 AND IN LONDON BRENT BLEND CRUDE FUTURES WERE UP AS MUCH AS 59 CENTS A BARREL FUELS FUTURES ALSO JUMPED ON THE NEW YORK MERCANTILE EXCHANGE SOME BY MORE THAN TWO CENTS A GALLON UNLEADED GASOLINE FOR FEBRUARY DELIVERY SETTLED 212 CENTS A GALLON HIGHER AT 5690 CENTS ALSO IN RECORD TRADING FEBRUARY HEATING OIL WAS UP 196 CENTS A GALLON TO 5647 CENTS SEN JOHNSTON'S BILL IS INTENDED TO REDUCE US RELIANCE ON FOREIGN OIL BY CUTTING CONSUMPTION AND INCREASING DOMESTIC OIL PRODUCTION IT'S ALSO INTENDED TO TRIM THE FEDERAL DEFICIT BY RAISING 35 BILLION IN NEW GOVERNMENT REVENUE OVER THREE YEARS AND 50 BILLION THROUGH THE YEAR 2000 ANALYSTS'S DOUBTS ABOUT THE LEGISLATION'S PROSPECTS STEM FROM THE FACT THAT CONGRESS HAS BEEN DEALING WITH SIMILAR PROPOSALS FOR MORE THAN A DECADE THE IDEA OF A FLOOR UNDER THE PRICE OF OIL SUCH AS THE 25 PROPOSED BY SEN JOHNSTON ISN'T A NEW ONE SOME US PRODUCERS HAVE BEEN SUGGESTING SUCH A MOVE FOR YEARS STILL ANNOUNCEMENT OF THE JOHNSTON PROPOSAL HAD THE EFFECT OF BEING THE SECOND SHOE DROPPED IN THIS WEEK'S EXPLOSIVE OIL RALLY WHICH ALREADY HAD SENT CRUDE OIL FUTURES SURGING AS MUCH AS 83 CENTS A BARREL ON MONDAY ON NEWS FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PRICES HAD INITIALLY ROCKETED HIGHER ON RECOMMENDATIONS FROM SAUDI ARABIA AND IRAN THAT TOTAL PRODUCTION BY OPEC BE REDUCED BY AT LEAST ONE MILLION BARRELS A DAY FROM THE CURRENT 25 MILLION A DAY OPEC'S OIL MINISTERS MEET FEB 13 IN VIENNA TO SET SECONDQUARTER PRODUCTION LEVELS SOME FUTURES TRADERS SUGGESTED THAT THE OILIMPORT FEE PROPOSAL IS LIKELY TO SUPPORT PRICES UNTIL THEN IT'S GOING TO SCARE THE MARKETS AT LEAST UNTIL THE OPEC MEETING SAID PETER GIGNOUX SENIOR VICE PRESIDENT ON THE PETROLEUM DESK OF SMITH BARNEY HARRIS UPHAM EUROPE LTD IN LONDON ALGERIA JOINED A CHORUS OF OTHER MEMBERS OF OPEC CALLING FOR PRODUCTION CUTS ALIRIO PARRA OPEC'S PRESIDENT WAS IN ALGERIA IN HIS TOUR OF MIDDLE EASTERN AND NORTH AFRICAN OPEC MEMBERS IN SEARCH OF A CONSENSUS ON PRODUCTION LEVELS BEFORE LEAVING FOR LIBYA MR PARRA EXPRESSED CONFIDENCE THAT OPEC WILL CUT OUTPUT FROM MARCH 1 SOME ANALYSTS SUGGESTED MEANWHILE THAT OPEC WOULDN'T HAVE ANY CHOICE BUT TO CUT OUTPUT EVENTUALLY IF AN OILIMPORT FEE BILL DID GET CONGRESS'S APPROVAL PARTICULARLY AFFECTED WOULD BE THE MIDDLE EAST PRODUCERS WHOSE SALES AND PRODUCTION OF OIL WOULD DROP SHARPLY SAID NORMAN HIGBY A MENLO PARK CALIF ENERGY FORECASTER SEN JOHNSTON'S FLOOR PRICE OF 25 FOR IMPORTED OIL IF APPLIED TO SAUDI ARABIA OR KUWAITI OIL WOULD IN EFFECT ACCOMPLISH WHAT SADDAM HUSSEIN SET OUT TO DO BUT FAILED ON THE OTHER HAND MANY ANALYSTS ARGUED THAT THIS DEVELOPMENT WILL ONLY STIFFEN OPEC'S RESOLVE TO PUSH UP PRICES BY ITSELF WHY SHOULDN'T OPEC PRODUCE 20 MILLION BARRELS A DAY INSTEAD OF 25 MILLION AND COLLECT THE 25 ASKED JOHN HILL A VICE PRESIDENT WITH THE MERRILL LYNCH ENERGY TRADING DESK IN NEW YORK IN OTHER COMMODITY MARKETS YESTERDAY LUMBER THE CHICAGO MERCANTILE EXCHANGE'S USUALLY SLEEPY LUMBER CONTRACT SOARED THE DAILY PRICEMOVE LIMIT FOR THE FOURTH CONSECUTIVE DAY FACED BY EXTREME SUPPLY SHORTAGES OF LUMBER PRODUCED BY MILLS IN CANADA'S BRITISH COLUMBIA REGION HOME BUILDERS AND OTHERS ARE SCRAMBLING TO LOCK IN COMMITMENTS TO BUY THE LUMBER THEY NEED SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH PRICES ON THE CASH MARKET FOR LUMBER HAVE SOARED 40 SINCE NOVEMBER WHICH ALSO LENDS SUPPORT TO FUTURES PRICES AT THE CHICAGO MERC LUMBER FOR MARCH DELIVERY ROSE THE 5 LIMIT TO SETTLE AT 29850 PER THOUSAND BOARD FEET THE MARCH CONTRACT IN FACT NEVER TRADED AT ANY OTHER PRICE YESTERDAY IT LEAPED BY THE DAILY LIMIT ON THE DAY'S OPENING TRADE AND NEVER TRADED AT ANY OTHER PRICE MR O'NEILL SAID GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES FELL ON MAJOR SELLING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY IN ADDITION TO THE SELLING BY FUNDS WHICH TRADE ON THE BASIS OF MATHEMATICALLY DERIVED STRATEGIES RATHER THAN FUNDAMENTAL FACTORS ANALYSTS ARE BEGINNING TO SUSPECT THAT BRAZIL MAY PRODUCE A RECORD CROP OF SOYBEANS THIS YEAR SOUTHERN BRAZIL NTINUES TO RECEIVE IDEAL RAIN FOR ITS FARMERS' GROWING NEEDS AND TRADE RUMORS COMING OUT OF BRAZIL ARE SUGGESTING A CROP THAT MAY TOP 22 MILLION METRIC TONS SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THE RECORD CROP IS 228 MILLION METRIC TONS HE SAID AT THE CHICAGO BOARD OF TRADE THE PRICE OF THE SOYBEAN CONTRACT FOR MARCH DELIVERY DECLINED 85 CENTS TO SETTLE AT 57275 A BUSHEL COTTON COTTON FUTURES ENDED THEIR THREEDAY DECLINE ON A ROUND OF BUYING BY INVESTORS AND SHORTCOVERING BY COMMODITY FUNDS ANALYSTS SAID HELPED BY A BULLISH REPORT OF TIGHTENING SUPPLIES FROM PAKISTAN COTTON FOR MARCH DELIVERY JUMPED 082 CENT TO CLOSE AT 5876 CENTS A POUND ON THE NEW YORK COTTON EXCHANGE WE SAW SOME FRESH BUYING AT THESE LOW LEVELS SAID SANDRA KAUL A SENIOR ANALYST WITH SHEARSON LEHMAN BROTHERS SHE NOTED THAT THE FUNDAMENTAL PICTURE FOR COTTON FUTURES BRIGHTENED WITH THE REPORT THAT PAKISTAN WON'T FOR THE TIME BEING ALLOW ANY NEW EXPORT COMMITMENTS BECAUSE OF ITS POOR CROP TORRENTIAL RAINS AND FLOODING LATE LAST YEAR DAMAGED THE COUNTRY'S HUGE COTTON CROP WHICH IS AMONG THE WORLD'S LARGEST ALSO BOLSTERING PRICES WAS NEWS THAT US EXPORT SALES WERE BRISK AT 87800 BALES UP 59 FROM THE PREVIOUS WEEK MS KAUL SAID 9301290044 930129 IBM'S STRUCTURE IS STUDIED BY MANAGEMENT BOARD NEW YORK INTERNATIONAL BUSINESS MACHINES CORP'S CORPORATE STRUCTURE IS BEING REEVALUATED BY MANAGEMENT AND THE FULL BOARD AND NOT BY THE SPECIAL COMMITTEE SEARCHING FOR A NEW CHIEF EXECUTIVE OFFICER THE HEAD OF THAT COMMITTEE SAID APPARENTLY RESPONDING TO AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL JAMES BURKE THE OUTSIDE DIRECTOR LEADING THE SEARCH FOR A SUCCESSOR TO JOHN AKERS AS CEO CONFIRMED THAT IBM IS REEVALUATING ITS STRUCTURE BUT MR BURKE NOTED IN A STATEMENT THAT HIS COMMITTEE ISN'T RESPONSIBLE FOR ANY DECISIONS ON THE MATTER THE JOURNAL ARTICLE SAID THE SPECIAL COMMITTEE NOT ONLY WAS SEEKING A SUCCESSOR FOR MR AKERS BUT ALSO HAD A BROADER MANDATE TO DECIDE WHAT CORPORATE STRUCTURE CAN REVIVE THE SPRAWLING COMPUTER COMPANY MR BURKE'S PANEL INCLUDES SIX OTHER OUTSIDE DIRECTORS ON IBM'S 18MEMBER BOARD AN IBM SPOKESMAN SAID MR BURKE'S COMMENTS REPORTED IN YESTERDAY'S STORY WERE MADE IN HIS CAPACITY AS A MEMBER OF IBM'S FULL BOARD WHICH IS REVIEWING IBM'S STRUCTURE ALONG WITH MR AKERS AND OTHER TOP MANAGERS NOT AS HEAD OF THE NOMINATING AND EXECUTIVE COMPENSATION COMMITTEE THAT WILL CONDUCT THE CEO SEARCH MR AKERS RESIGNED AS CHIEF EXECUTIVE EARLIER THIS WEEK HE WILL REMAIN CEO UNTIL A SUCCESSOR IS NAMED WITHIN THREE MONTHS IT ISN'T CLEAR WHETHER HE WILL REMAIN CHAIRMAN AFTER THAT 9301290043 930129 WHO'S NEWS THREE CHIEF EXECUTIVES ARE BOWING OUT WITH BRUISED EGOS LUCRATIVE PACKAGES BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL PARTING IS SUCH SWEET SORROW BUT IT'S APPARENTLY A LOT SWEETER FOR SOME PEOPLE THAN OTHERS THE IMMINENT OR RECENT DEPARTURES OF SEVERAL BIGCOMPANY CHIEF EXECUTIVE OFFICERS INCLUDING PAUL LEGO AT WESTINGHOUSE ELECTRIC CORP JOHN AKERS AT INTERNATIONAL BUSINESS MACHINES CORP AND ROBERT STEMPEL AT GENERAL MOTORS CORP MAY BRUISE THE EXECUTIVES' EGOS BUT THE MEN SHOULD BE ABLE TO FIND SOME SOLACE IN THEIR BANK ACCOUNTS THEY POSSIBLY STAND TO REAP ENORMOUS SUMS FAR INTO THE FUTURE AND NOT JUST FROM THEIR HEFTY PENSIONS THEIR BIGGEST POSSIBLE PAYOFF STOCK OPTIONS POTENTIALLY WORTH MILLIONS OF DOLLARS THE OPTIONS WHICH RISE IN VALUE WITH THE COMPANY'S STOCK PRICE COULD MAKE FORTUNES FOR SOME DEPARTING CEOS IF THEIR SUCCESSORS DO REALLY WELL TO BE SURE MANY OF THE STOCK OPTIONS ARE FOR PRICES FAR ABOVE THE CURRENT TRADING PRICES WHICH IN MANY CASES ARE DEPRESSED BECAUSE OF EVENTS THAT TOOK PLACE DURING THE TENURES OF THE DEPARTING EXECUTIVES BUT THE THREE MEN HAVE LITTLE TO GRIPE ABOUT AT LEAST FINANCIALLY MR LEGO AT WESTINGHOUSE WILL RETAIN HUNDREDS OF THOUSANDS OF STOCK OPTIONS INCLUDING AN UNUSUALLY HEFTY 700000SHARE OPTION GRANT MADE IN 1991 IF IBM'S MR AKERS WHO IS STEPPING DOWN AS CHIEF EXECUTIVE THIS SPRING ALSO RETIRES AS CHAIRMAN AS MANY EXPECT HE WILL COLLECT AN ANNUAL PENSION OF ABOUT 12 MILLION AMONG OTHER BENEFITS MR STEMPEL OUSTED THIS PAST FALL FROM THE HELM OF GM RECEIVES A PENSION OF ABOUT 800000 A YEAR AND THE RIGHT TO EXERCISE HIS STOCK OPTIONS FOR FIVE YEARS HE ALSO REMAINS ON THE COMPANY PAYROLL INDEFINITELY AS A CONSULTANT GM OFFICIALS DECLINE TO DISCLOSE THE VALUE OF HIS CONSULTING CONTRACT WHICH THEY SAY WILL BE REVIEWED YEARLY OTHER TOP MANAGERS PUSHED OUT OF THE EXECUTIVE SUITE RECEIVE FAT SEVERANCE PAYMENTS OR PAYMENTS TO AVOID COMPETING WITH THEIR OLD COMPANIES THE COMPANIES WANT TO SAY LET'S AT LEAST PART AS FRIENDS' SAYS DAVID SWINFORD A PRINCIPAL WITH WILLIAM M MERCER INC A COMPENSATION CONSULTING FIRM IF YOU START TO NIGGLE ON THE MONEY IT'S HARDER TO PART AS FRIENDS INDEED MR SWINFORD SAYS EVEN IN COMPANIES WITHOUT SPECIAL ARRANGEMENTS FOR A CEO'S UNTIMELY DEPARTURE THE USUAL EXIT PACKAGE IS FAIRLY GENEROUS YET SHAREHOLDERS MAY NEVER KNOW THE FULL DETAILS OF DEPARTING CHIEF EXECUTIVES' FINANCIAL ARRANGEMENTS UNDER NEW SECURITIES AND EXCHANGE COMMISSION RULES EFFECTIVE THIS YEAR A COMPANY NEEDN'T DISCLOSE COMPENSATION FOR AN EXECUTIVE IF HE OR SHE WASN'T ON THE PAYROLL AT THE END OF ITS FISCAL YEAR AN IBM SPOKESMAN SAYS MR AKERS WOULDN'T RECEIVE ANY EXCEPTIONAL EXIT PAYMENTS BEYOND THE PENSION AND STOCK PLANS ALREADY DISCLOSED THERE'S NO SUCH THING HERE AS A GOLDEN PARACHUTE SAYS JIM RUDERMAN AN IBM SPOKESMAN GM DECLINES TO SPECIFY WHETHER MR STEMPEL GOT ANY EXTRA PAY UPON HIS DEPARTURE WESTINGHOUSE'S BOARD HASN'T DECIDED YET WHETHER MR LEGO WILL RECEIVE ANY SPECIAL EXIT PAYMENTS A SPOKESMAN SAYS COMPENSATION EXPERTS SAY THAT IT'S NEARLY IMPOSSIBLE TO FIGURE EXACTLY THE CURRENT COMPENSATION PACKAGES FOR MESSRS LEGO AKERS AND STEMPEL BECAUSE SOME PAY ELEMENTS DEPEND ON VARIABLE CONDITIONS OTHER FACTORS SIMPLY AREN'T KNOWN FOR INSTANCE STOCK OPTIONS AND OTHER SUMS GRANTED LAST YEAR CAN'T BE INCLUDED IN THE CALCULATIONS BECAUSE PROXY STATEMENTS DETAILING 1992 COMPENSATION HAVEN'T BEEN RELEASED YET BUT A LOOK AT PAST CORPORATE PROXY STATEMENTS AND ARRANGEMENTS WITH OTHER EXITING CEOS OFFER A SNAPSHOT OF IMPORTANT PARTS OF THE PACKAGES THAT THESE THREE CHIEFS WILL CARRY INTO RETIREMENT IBM IF MR AKERS ALSO STEPS DOWN AS CHAIRMAN RESTRICTIONS ON PREVIOUSLY GRANTED STOCK OPTIONS WILL LAPSE THE 391356 OPTIONS WHICH HAVE A 10YEAR LIFE THAT MR AKERS WAS GRANTED FROM 1987 TO 1991 ARE WORTHLESS AT THIS POINT THE EXERCISE PRICES RANGE FROM 9669 TO 12456 A SHARE AND THE STOCK CLOSED YESTERDAY AT 5025 BUT CONSIDER MR AKERS'S 1990 GRANT OF 95562 OPTIONS TO BUY SHARES AT 9669 EACH HE WOULD MAKE 32 MILLION FROM IT IF BY THE YEAR 2000 A NEW IBM BOSS CAN RETURN THE COMPANY'S STOCK VALUE TO THE 130 A SHARE IT WAS TRADING AT WHEN MR AKERS TOOK OFFICE IN 1985 IF MR AKERS ALSO STEPS DOWN AS CHAIRMAN HE WILL IMMEDIATELY BE ABLE TO SELL ANY RESTRICTED STOCK RECEIVED IN 1992 NORMALLY IBM REQUIRES THAT SUCH STOCK BE HELD TWO YEARS THAT LIMITATION ALSO LAPSES WHEN MR AKERS RETIRES IF HE RETIRES HE WILL ALSO COLLECT AN ANNUAL PENSION OF ABOUT 12 MILLION IN 1991 MR AKERS EARNED SALARY AND BONUS TOTALING 158 MILLION WESTINGHOUSE MR LEGO'S POTENTIAL STOCK PROFITS FROM A WESTINGHOUSE TURNAROUND ARE EVEN MORE SUBSTANTIAL PRIMARILY BECAUSE OF AN UNUSUALLY GENEROUS 700000SHARE OPTION GRANT AT 2228 A SHARE IN 1991 WHEN THE COMPANY WAS ALREADY EXPERIENCING DIFFICULTIES WITH WESTINGHOUSE STOCK CLOSING YESTERDAY AT 1375 THOSE OPTIONS ARE VALUELESS BUT MR LEGO WOULD REAP AN 117 MILLION PROFIT IF THE STOCK PRICE RETURNS BY THE YEAR 2001 TO THE 39 RANGE IN WHICH THE SHARES TRADED AS RECENTLY AS 1990 MR LEGO IS ALSO ENTITLED TO PENSION PAYMENTS WITH A COMBINED ANNUAL VALUE OF ABOUT 770000 IN ADDITION MR LEGO WILL CONTINUE AS A WESTINGHOUSE CONSULTANT THE COMPANY SAID IT DIDN'T DISCLOSE HIS SALARY FOR THAT POST OR THE LENGTH OF TIME HE WILL SERVE THE DEPARTING CEO MADE 677000 IN SALARY AND BONUS DURING 1991 GM MR STEMPEL THE AUTO GIANT'S FORMER CHAIRMAN COULD ALSO END UP COLLECTING A LOT MORE THAN HIS ANNUAL PENSION OF ABOUT 800000 SINCE 1989 HE HAS BEEN GRANTED OPTIONS TO BUY 344000 SHARES AT PRICES RANGING FROM 40 TO 4807 WITH GM'S STOCK CLOSING AT 3775 YESTERDAY THESE OPTIONS ARE VALUELESS BUT GM WILL LET HIM EXERCISE THE OPTIONS ANY TIME UNTIL 1997 IN 1991 MR STEMPEL'S SALARY AND BONUS ALONE TOTALED 1 MILLION DEPARTING CEOS ALSO USUALLY RETAIN LUCRATIVE SEATS ON OTHER BOARDS GENERATING FEES THAT AVERAGED 37840 EACH IN 1991 ACCORDING TO A STUDY BY EXECUTIVE RECRUITERS SPENCERSTUART MR LEGO HAS FOUR OUTSIDE DIRECTORSHIPS MR AKERS HAS TWO AND MR STEMPEL NONE ACCORDING TO PROXY STATEMENTS AND COMPANY SPOKESMEN AT OTHER COMPANIES PACKAGES FOR DEPARTING CEOS SOMETIMES INCLUDE EVEN MORE GENEROUS SEVERANCE PROVISIONS TIME WARNER INC FOR EXAMPLE PAID SEVERANCE OF 158 MILLION TO ITS OUSTED COCHIEF EXECUTIVE OFFICER NJ NICHOLAS JR WHEN HE LEFT FOLLOWING A BOARDROOM POWER STRUGGLE LAST YEAR IN ADDITION HE WILL GET AN ANNUAL SALARY OF 250000 UNTIL 1997 A PENSION OF ABOUT 600000 ANNUALLY FOR LIFE AND SOME STOCK AND STOCK OPTIONS ROBERT AG MONKS A PROMINENT SHAREHOLDER ACTIVIST DEFENDS THE HEFTY COMPENSATION GIVEN DEPARTING CHIEF EXECUTIVES AS A JUST REWARD FOR THE INCREASINGLY TENUOUS NATURE OF THEIR OFFICE FOR MANY YEARS THEY WERE BEING PAID TELEPHONENUMBER SALARIES AND THEY GOT TELEPHONENUMBER RETIREMENT PACKAGES AND THERE WAS NO RISK SAYS MR MONKS A PRINCIPAL OF LENS FUND IN WASHINGTON WHO HAS PRESSED SEARS ROEBUCK & CO AND OTHER CONCERNS FOR CORPORATEGOVERNANCE REFORMS NOW IF YOU DON'T PERFORM YOU'RE OUT OF A JOB 9301290042 930129 BUSINESS BRIEF DOW CHEMICAL CO FOURTHPERIOD LOSS WIDENED AFTER RESTRUCTURING CHARGE DOW CHEMICAL CO POSTED A WIDENED LOSS FOR THE FOURTH QUARTER AFTER TAKING AN EXPECTED 433 MILLION RESTRUCTURING CHARGE AND CAUTIONED THAT A GLOBAL SURPLUS OF CHEMICALS AND PLASTICS REMAINS A MAJOR HURDLE TO POSTING SUBSTANTIAL EARNINGS GAINS THIS YEAR DOW BASED IN MIDLAND MICH SAID ITS LOSS WAS 248 MILLION OR 92 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 92 MILLION OR 35 CENTS A SHARE AFTER TAKING A 370 MILLION RESTRUCTURING CHARGE IN 1991'S FOURTH QUARTER SALES ROSE 34 TO 472 BILLION FROM 456 BILLION EXCLUDING THE CHARGE IN LAST YEAR'S FOURTH QUARTER DOW EARNED 10 CENTS A SHARE ON AN OPERATING BASIS WHICH THE COMPANY SAID REFLECTS THE IMPACT OF CONTINUED WEAK INDUSTRY FUNDAMENTALS AND DEPRESSED FOREIGN ECONOMIES FRANK POPOFF DOW CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IMPROVING PRICES REMAINS OUR MOST SIGNIFICANT CHALLENGE AS THE INDUSTRY CONTINUES IN AN OVERSUPPLY CONDITION GLOBALLY WE ARE COUNTING ON OUR INCREASED PRODUCTIVITY TO HELP US ACHIEVE EARNINGS IMPROVEMENT WHILE LOOKING FORWARD TO AN UPTURN IN PRICES 9301290041 930129 MARKETING BRIEF ADVANCE PUBLICATIONS INC CONDE NAST PLANS EDITION OF GQ IN JAPANESE LANGUAGE IN A FIRST STEP TOWARD EXPANSION IN ASIA CONDE NAST PUBLICATIONS INC SAID IT WILL BEGIN PUBLISHING NEXT MONTH A JAPANESELANGUAGE EDITION OF GQ THE AMERICAN MEN'S FASHION AND LIFESTYLE MAGAZINE PUBLISHED IN PARTNERSHIP WITH CHUOKORONSHA INC CONDE NAST'S MONTHLY GQ JAPAN WILL HAVE ITS OWN JAPANESE EDITORIAL STAFF AND WILL USE ORIGINAL EDITORIAL MATTER MIXED WITH MATERIAL PUBLISHED IN US AND UK EDITIONS OF GQ CONDE NAST IS A UNIT OF ADVANCE PUBLICATIONS INC TOKYOBASED CHUOKORONSHA IS A PUBLISHER OF JAPANESE SPECIALINTEREST AND LITERARY MAGAZINES BERNARD H LESER PRESIDENT OF CONDE NAST SAID GQ JAPAN WILL SERVE AS A FORERUNNER TO OTHER ASIAN EDITIONS OF CONDE NAST TITLES CONDE NAST PUBLISHES VARIOUS FOREIGN EDITIONS OF VOGUE VANITY FAIR AND OTHER US TITLES WE WILL TAKE SOME TIME TO PUT DOWN PROPER ROOTS AND LEARN OUR LESSONS HE SAID THE FIRST ISSUE OF GQ JAPAN WITH A MARCH COVER DATE WILL CARRY 84 PAGES OF ADVERTISING AND WILL HAVE A JAPANESE CIRCULATION OF ABOUT 180000 GQ JAPAN'S FIRST COVER WILL FEATURE PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE THE SAME COVER GQ RAN IN THE US LAST NOVEMBER 9301290040 930129 BUSINESS BRIEF UNION TEXAS PETROLEUM HOLDINGS INC CAPITAL SPENDING BUDGET CUT ABOUT 17 FOR CURRENT YEAR UNION TEXAS PETROLEUM HOLDINGS INC HOUSTON DECREASED ITS 1993 CAPITAL SPENDING BUDGET ABOUT 17 TO 253 MILLION FROM 1992'S OUTLAYS OF 308 MILLION SPENDING WILL BE LESS BECAUSE THE COMPANY IS IN THE FINAL STAGES OF COMPLETING A MAJOR REDEVELOPMENT PROJECT OF CERTAIN PRODUCING FIELDS IN THE UNITED KINGDOM NORTH SEA ABOUT 170 MILLION WAS SPENT IN 1992 ON THESE PROJECTS AND THE COMPANY SAID SPENDING ABOUT 66 MILLION THIS YEAR WILL FINISH THE WORK THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID ITS 1993 CAPITAL BUDGET INCLUDES ABOUT 64 MILLION FOR OTHER EXPLORATION AND DEVELOPMENT IN THE NORTH SEA AN ADDITIONAL 74 MILLION WILL GO TOWARD DEVELOPMENT AND EXPLORATION IN INDONESIA AND 37 MILLION FOR EXPLORATION IN ALASKA PAKISTAN ARGENTINA PAPUA NEW GUINEA AND OTHER AREAS 9301290039 930129 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S DEFICIT PLAN MAY NOT MEET EVEN HIS MOST RECENT PUBLIC TARGET BUDGET CHIEFS PANETTA AND RIVLIN PREFER THAT CLINTON EXCEED HIS GOAL OF TRIMMING 145 BILLION FROM THE DEFICIT BY 1997 BECAUSE THAT WOULD STILL LEAVE RED INK OF MORE THAN 200 BILLION A YEAR BUT THEY DON'T PRESS THE CASE IN INTERNAL MEETINGS CLINTON'S PENCHANT TO PLEASE EVERYONE MAKES IT UNLIKELY THAT HE'D ACCEPT THE STIFF ENTITLEMENT CUTS AND HIGHER ENERGY TAXES SUCH A PLAN WOULD REQUIRE SOME WHITE HOUSE AIDES WARN THAT EVEN THE 145 BILLION GOAL MAY NOT BE REACHED IN A NEW WALL STREET JOURNAL/NBC NEWS POLL 52 OF THE PUBLIC BACK CUTTING THE DEFICIT AS A TOP PRIORITY WHILE 42 PICK HEALTHCARE REFORM AND 24 CHOOSE CUTTING MIDDLECLASS TAXES AND SIX IN 10 SAY THEY WOULD BE WILLING TO PAY HIGHER TAXES FOR DEFICIT REDUCTION BUT THE MAJORITY 52 DOUBT CLINTON WILL SUCCEED IN REACHING HIS DEFICITREDUCTION GOAL SOME CLINTON ADVISERS FEAR IF THEY AREN'T AGGRESSIVE IN ATTACKING THE DEFICIT THEY FACE A BARRAGE OF PUBLIC CRITICISM FROM ROSS PEROT DEBATE SHARPENS ON IRAQ AS THE PUBLIC FAVORS A TOUGH STANCE SECRETARY OF STATE CHRISTOPHER TAKES A HARD LINE AGAINST THE IRAQIS PENTAGON OFFICIALS BACK A DECISIVE RESPONSE TO ANY CLEAR IRAQI PROVOCATION BUT WORRY ABOUT GETTING INTO A TITFORTAT POLICY EUROPEAN ALLIES BELIEVE CLINTON WILL BE MORE MODERATE THAN BUSH ON IRAQ BUT WARN THAT COULD BE MISREAD BY SADDAM HUSSEIN IN THE NEW POLL 55 OF THE PUBLIC OPPOSE NORMAL RELATIONS WITH IRAQ EVEN IF SADDAM HUSSEIN CHANGES HIS BEHAVIOR AND ABIDES BY UN RESOLUTIONS SOME 74 WANT CLINTON TO CONTINUE BUSH'S POLICIES TOWARD IRAQ STILL REGARDING FOREIGN POLICY THE PUBLIC HAS VIRTUALLY NO INTEREST AT ALL SAYS WSJ/NBC POLLSTERS PETER HART AND ROBERT TEETER HILLARY CLINTON PREPARES TO MOVE SWIFTLY ON HEALTHCARE ACTIONS EVEN BEFORE THE NEW TASK FORCE SHE HEADS COMES UP WITH A BROAD OVERHAUL PROPOSAL SHE MAY PUSH FOR A BIG EXPANSION OF THE GOVERNMENT'S CHILDHOOD IMMUNIZATION PROGRAM ONE POSSIBILITY REQUIRING ALL CHILDREN TO BE IMMUNIZED BEFORE AGE TWO OR SO AND SETTING THE PRICES OF THE VACCINATIONS MORE BROADLY SOME MEDICAL GROUPS FEAR A REFORM PLAN CALLING FOR SWEEPING GOVERNMENT PRICE CONTROLS ON DOCTORS AND HOSPITALS WHITE HOUSE AIDE IRA MAGAZINER TAKES CHARGE AS THE TASK FORCE'S TOP ADMINISTRATOR BUT HHS SECRETARY SHALALA ALSO MOVES TO BE A MAJOR PLAYER THE TREASURY WILL STUDY POSSIBLE WAYS TO CAP TAX BREAKS FOR EMPLOYERPROVIDED HEALTH BENEFITS BUT NO DECISIONS HAVE BEEN MADE MORE THAN HALF OF THOSE SURVEYED IN THE WSJ/NBC POLL THINK CLINTON WILL IMPROVE THE NATION'S HEALTHCARE SYSTEM CONGRESS SEEKS TO END GRIDLOCK IN THE POLL MORE THAN 60 OF THE PUBLIC THINK CONGRESS AND CLINTON WILL WORK TOGETHER NOW THAT THE DEMOCRATS ARE IN FULL CONTROL SENATE LEADER MITCHELL AND HOUSE SPEAKER FOLEY PUSH PROCEDURAL CHANGES TO EXPEDITE LEGISLATION BUT IMAGE PROBLEMS REMAIN NEARLY 60 OF VOTERS STILL DISAPPROVE OF THE JOB CONGRESS IS DOING THOUGH THAT IS DOWN FROM 78 LAST APRIL THE CONGRESSIONAL BACKLASH OVER GAYS IN THE MILITARY MAY PORTEND MORE CLASHES WITH CLINTON GORE PHONES CONGRESSIONAL LEADERS IN DOZENS OF CALLS TO DISCUSS CLINTON POLICIES RANGING FROM GAYS IN THE MILITARY TO ECONOMIC PLANS IN THE POLL 55 OF THE PUBLIC VIEW GORE POSITIVELY ONLY 15 HAVE A NEGATIVE VIEW RAISING THE AGE FOR FULL SOCIAL SECURITY BENEFITS TO 67 FROM 65 IS OPPOSED BY THREEQUARTERS OF THE PUBLIC IN THE NEW POLL CLINTON HAS HINTED AT THE IDEA AND DEPUTY BUDGET CHIEF RIVLIN SAYS THAT IN CURBING COSTS WE CAN'T EXEMPT RETIRED PEOPLE WHO HAVE FARED COMPARED TO THE REST OF THE ECONOMY RELATIVELY WELL PEROT REFUSES TO FADE AWAY FROM THE PUBLIC POLITICAL STAGE THE TEXAS BILLIONAIRE MAKES TALKSHOW ROUNDS COMPLAINING THAT CLINTON IS DISTRACTED FROM THE DEFICIT BY ISSUES SUCH AS GAY RIGHTS HE BEGINS TESTING TECHNOLOGY FOR HIS TELEVISED TOWN MEETINGS IN DALLAS TV VIEWERS WERE ASKED TO VOTE BY PHONE ON WHETHER AMERICANS SHOULD BE BARRED FROM LOBBYING FOR FOREIGN INTERESTS 11000 RESPONDED AND 96 FAVORED A BAN IN THE WSJ/NBC POLL TWOTHIRDS OF THE PUBLIC SAY THEY WOULD LIKE TO SEE PEROT CONTINUE TO PLAY A ROLE IN PUBLIC AFFAIRS DURING THE NEXT FOUR YEARS MORE THAN 40 THINK HE IS PROMOTING MEMBERSHIP IN HIS UNITED WE STAND AMERICA ORGANIZATION TO UNITE BACKERS TO INFLUENCE FEDERAL POLICY BUT ALMOST 33 THINK HE IS LAYING THE GROUNDWORK TO RUN FOR PRESIDENT IN 1996 PEROT MULLS HOLDING FORUMS AND ISSUING REPORT CARDS FOR THE CANDIDATES RUNNING FOR THE OPEN SENATE SEAT IN TEXAS MINOR MEMOS JOE SIXPACK'S TEAM NOT ONLY DOES MOST OF THE PUBLIC WANT THE DALLAS COWBOYS TO BEAT THE BUFFALO BILLS IN SUNDAY'S SUPER BOWL BUT CONTRARY TO STEREOTYPES BLUECOLLAR WORKERS BACK DALLAS BY AN EVEN GREATER MARGIN THAN WHITECOLLAR WORKERS TOO LATE IN THE NEW POLL BUSH'S POSITIVE RATING CLIMBS TO 52 FROM 39 LAST SUMMER SUPPORT FOR THE FREETRADE PACT WITH MEXICO AND CANADA EDGES UP TO 28 OF THOSE POLLED FROM 21 IN OCTOBER 33 HAVE NO VIEW 9301290038 930129 ENTERTAINMENT TIME WARNER RELEASES ICET FROM CONTRACT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC AND RAP ARTIST ICET CITING CREATIVE DIFFERENCES SEVERED TIES ONLY MONTHS AFTER THE COMPANY'S CHIEF EXECUTIVE GERALD M LEVIN DEFENDED THE ENTERTAINER'S SONG COP KILLER AS AN EXPRESSION OF CREATIVE FREEDOM IN A STATEMENT THE COMPANY'S WARNER BROS RECORD UNIT SAID IT RELEASED ICET UNCONDITIONALLY FROM HIS RECORDING CONTRACT AND CANCELED THE FEBRUARY RELEASE OF HIS ALBUM HOME INVASION THE MUSIC UNIT PROVIDED FEW ADDITIONAL DETAILS AND REBUFFED REQUESTS FOR INTERVIEWS WITH EXECUTIVES AND PARENT TIME WARNER DESPITE ITS ROLE IN THE COP KILLER CONTROVERSY LAST SUMMER DISTANCED ITSELF FROM THE DISPUTE BETWEEN ICET AND THE MUSIC OPERATIONS A SPOKESMAN SAID MR LEVIN WASN'T INVOLVED IN THE MATTER AND WAS INFORMED OF THE SEPARATION AFTER THE FACT THE SCHISM LEAVES THE WORLD'S LARGEST ENTERTAINMENT AND MEDIA COMPANY IN AN AWKWARD POSITION AND IT EXPOSES THE TENSION BETWEEN COMMERCE AND ARTISTIC EXPRESSION AND THE CONFLICTING PRESSURES THAT CAN BUFFET A COMPANY AIMING TO BALANCE THE TWO TIME WARNER APPEARS NOW TO HAVE BOWED TO THE PRESSURE OF DETRACTORS INCLUDING POLITICIANS SHAREHOLDERS AND THE POLICE WHO CRITICIZED THE COMPANY LAST YEAR FOR DISTRIBUTING ICE T'S ALBUM BODY COUNT AND ITS SINGLE COP KILLER THE CRITICS CONTENDED THE SINGLE WAS A CALL FOR POLICE ASSASSINATION AND LAW ENFORCEMENT OFFICIALS CALLED FOR A BOYCOTT OF TIME WARNER PRODUCTS BUT MR LEVIN DEFENDED ICET ARGUING IN A PUBLISHED DEFENSE THAT WE STAND FOR CREATIVE FREEDOM HE ADDED THAT THE WORTH OF WHAT AN ARTIST OR JOURNALIST HAS TO SAY DOES NOT DEPEND ON PREAPPROVAL FROM A GOVERNMENT OFFICIAL OR A CORPORATE CENSOR OR A CULTURAL ELITE OF THE RIGHT OR OF THE LEFT NOT LONG AFTERWARD TIME WARNER REISSUED THE RECORD WITHOUT THE COP KILLER CUT OSTENSIBLY AT ICET'S BEHEST YESTERDAY A WARNER RECORDS INSIDER SAID TIME WARNER IS PARTICULARLY GUN SHY SINCE THE COP KILLER DEBATE THEY'VE GONE FROM BEING THE MOST LIBERAL COMPANY TO GOING OVER EVERYTHING WITH A FINETOOTHED COMB HE SAID HE NOTED THAT THE RECORD COMPANY CLOSELY REVIEWS BOTH LYRICS AND ALBUM ART NOW AND NIXES ANYTHING DEEMED TOO CONTROVERSIAL SUCH AS A STICKER THAT APPEARED TO BE IN THE SHAPE OF A BULLET INDUSTRY EXECUTIVES SUGGEST THAT ICET'S PRIMARY MOTIVATION IN SEVERING HIS TIES WITH WARNER MAY BE FINANCIAL IF THE RECORD IS DISTRIBUTED INDEPENDENTLY THEY SAY THE RAP STAR STANDS TO MAKE MORE MONEY PER RECORD ONE INDUSTRY EXECUTIVE SAID ICET MIGHT NOW POCKET 4 A RECORD AS OPPOSED TO 130 TO 150 UNDER A MAJOR RECORD LABEL SUCH AS WARNER ICET COULDN'T BE REACHED FOR COMMENT RAP SUPPORTERS EXPRESSED CONCERN ABOUT THE DEVELOPMENT IF YOU BELIEVE AS I DO THAT RAP IS THE SENTIMENT BEING EXPRESSED ON THE STREETS THEN YOU SHOULD BE VERY UNCOMFORTABLE WITH ICET'S FATE SAID JAMES BERNARD SENIOR EDITOR OF RAP MAGAZINE THE SOURCE THIS SHOWS ME THAT MAYBE TIME WARNER WASN'T IN HIS CORNER AS STRONGLY AS HE WOULD HAVE LIKED FOR US TO THINK THE WHOLE THING RAISES THIS QUESTION CAN YOU HAVE TRUE RAP EXPRESSION ON A MAJOR LABEL BUT TIME WARNER'S CRITICS APPLAUDED THE SPLIT RONALD G DELORD PRESIDENT OF COMBINED LAW ENFORCEMENT ASSOCIATION OF TEXAS SAID IT'S A GOOD SIGN THAT THE CORPORATION IS TRYING TO GET ITS REPUTATION BACK I HOPE THEY CONTINUE IN THAT PATH 9301290037 930129 BUSINESS BRIEF PITNEY BOWES INC CONCERN INTRODUCES MACHINE THAT STUFFS SEALS ENVELOPES PITNEY BOWES INC STAMFORD CONN EXPANDED ITS LINE OF HIGHTECH BUSINESS MAILING MACHINES BY INTRODUCING A MACHINE THAT FOLDS AND INSERTS SHEETS INTO ENVELOPES AND SEALS THE FLAPS THE NEW SYSTEM THE SPECTRUM INSERTING SYSTEM ENABLES BUSINESSES TO AUTOMATE 96 OF OUTGOING MAIL PROCESSING TASKS WHEN USED IN COMBINATION WITH TWO RELATED PITNEY BOWES SYSTEMS ADDRESSRIGHT WHICH PRINTS ADDRESSES FROM MAILING LISTS ONTO ENVELOPES AND PARAGON WHICH WEIGHS AND METERS MAIL ALTHOUGH REGISTERED AND CERTIFIED MAIL ABOUT 4 OF BUSINESS MAIL STILL MUST BE HAND PROCESSED NOW THE MOST TIMECONSUMING ACTIVITY IN MAILING IS TAKEN CARE OF A SPOKESMAN SAID THE SPECTRUM SYSTEM IS PRICED AT 19690 TO 25470 DEPENDING ON THE CONFIGURATION AND CAN PROCESS IN AN HOUR MORE THAN 2000 PIECES OF MAIL CONSISTING OF A SINGLE FOLDED SHEET AND AN ENVELOPE THE COMPANY SAID PITNEY BOWES MAKES BUSINESS EQUIPMENT AND SUPPLIES AND PROVIDES FINANCIAL SERVICES PITNEY BOWES INC'S SPECTRUM INSERTING SYSTEM CAN FEED AND COLLATE AS MANY AS FIVE INDIVIDUAL SHEETS FOLD AND INSERT THEM INTO AN ENVELOPE AND THEN SEAL THE FLAPS AT A RATE OF AS MANY AS 4000 ENVELOPES AN HOUR AN ARTICLE FRIDAY INCORRECTLY SAID THE SYSTEM COULD HANDLE MORE THAN 2000 ENVELOPES AN HOUR 9301290036 930129 BUSINESS BRIEF RYAN BECK & CO NET DOUBLED IN 4TH QUARTER SPECIAL DIVIDEND IS DECLARED INVESTMENT BANKING COMPANY RYAN BECK & CO SAID FOURTHQUARTER EARNINGS MORE THAN DOUBLED AND DECLARED A 14CENT SPECIAL CASH DIVIDEND THE COMPANY SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER FENWICK H GARVEY 47 YEARS OLD WOULD RELINQUISH SOME OR ALL OF HIS EXECUTIVE DUTIES BY JAN 31 1994 DUE TO HEALTH REASONS THE COMPANY SAID AN EXECUTIVE COMMITTEE HAS ALREADY ASSUMED SOME OF MR GARVEY'S DUTIES RYAN BECK ALSO SAID JAMES P BENSON 35 YEARS OLD FORMERLY SENIOR FINANCIAL SERVICES ANALYST AT AG EDWARDS WAS NAMED FIRST VICE PRESIDENT AND HEAD OF EQUITY RESEARCH AND IT SAID JOHN S BARAN 40 CHIEF ADMINISTRATIVE AND FINANCIAL OFFICER HAD RESIGNED A SUCCESSOR IS EXPECTED TO BE NAMED SOON THE COMPANY SAID FOURTHQUARTER NET INCOME ROSE TO 11 MILLION OR 31 CENTS A SHARE FROM THE YEAREARLIER 438000 OR 13 CENTS A SHARE REVENUE ROSE TO 69 MILLION FROM 4 MILLION RYAN BECK DECLARED A 14CENT SPECIAL DIVIDEND AND A ONECENT QUARTERLY DIVIDEND BOTH PAYABLE FEB 17 TO SHARES OF RECORD FEB 8 9301290035 930129 INTERNATIONAL BRIEF CAP GEMINI SOGETI SA COMPUTER SERVICES GROUP HAS FIRST LOSS IN ITS HISTORY FRENCH COMPUTER SERVICES GROUP CAP GEMINI SOGETI SA REPORTED ITS FIRST LOSS EVER IN ITS 18YEAR HISTORY COMPANY OFFICIALS SAID THAT 1993 WILL ALSO BE A DIFFICULT YEAR BUT THEY HOPE TO HAVE FORDED THE WORST OF THE HARD TIMES AND RETURN TO PROFITABILITY BY 1994 THE OMNIVOROUS COMPUTER SERVICES GROUP IN PARIS WHICH HAS VIRTUALLY DOUBLED ITS SIZE IN REVENUE AND STAFF FROM 1988 TO 1992 ANNOUNCED A 1992 PRELIMINARY NET GROUP LOSS OF 80 MILLION FRANCS 149 MILLION SWINGING FROM A 560MILLIONFRANC PROFIT IN 1991 AMONG OTHER THINGS CAP GEMINI'S BOTTOM LINE WAS WEIGHED DOWN BY 338 MILLION FRANCS OF RESTRUCTURING PROVISIONS AND A 117MILLIONFRANC PROVISION LINKED TO A 1990 CONVERTIBLE BOND ISSUE STILL CAP GEMINI STOCK ROSE ON THE PARIS EXCHANGE BECAUSE MANY INVESTORS BELIEVE THAT THE COMPANY HAS DISCLOSED ITS BAD NEWS 9301290034 930129 INTERNATIONAL ISRAEL'S SUPREME COURT BACKS EXPULSION OF PALESTINIANS POSING TEST FOR CLINTON BY WALL STREET JOURNAL REPORTERS ROBERT S GREENBERGER IN WASHINGTON AND AMY DOCKSER MARCUS IN TEL AVIV ISRAEL'S SUPREME COURT BACKED THE GOVERNMENT'S DECISION TO EXPEL 415 PALESTINIANS TO LEBANON A DECISION THAT SET UP THE FIRST TEST OF THE CLINTON ADMINISTRATION'S SUPPORT OF ISRAEL AND FURTHER JEOPARDIZES THE FLOUNDERING MIDEAST PEACE TALKS BUT THE COURT DID PROVIDE A WAY FOR YITZHAK RABIN'S GOVERNMENT TO TRY TO DEFUSE THE PROBLEMS FINDING THAT HIS GOVERNMENT ACTED IMPROPERLY BY DEPORTING THE PALESTINIANS WITHOUT A HEARING IT EFFECTIVELY GAVE ISRAEL THE CHANCE TO COMPLY RETROACTIVELY BY ALLOWING THE DEPORTEES TO APPEAL THEIR EXPULSIONS BEFORE MILI TARY JUDGES THE ISRAELI GOVERNMENT IMMEDIATELY ANNOUNCED IT WAS SETTING UP SUCH AN APPEALS PROCESS BUT IT INSISTED IT WOULDN'T PERMIT A RETURN OF THE DEPORTEES IN THE MEANTIME US OFFICIALS ARE UNDER PRESSURE TO HEAD OFF A UNITED NATIONS RESOLUTION THAT WOULD IMPOSE SANCTIONS ON ISRAEL IF IT DOESN'T PERMIT THE RETURN OF THE PALESTINIANS WHO BELONG TO THE ISLAMIC FUNDAMENTALIST HAMAS GROUP THAT WAS RESPONSIBLE FOR A SURGE OF VIOLENCE IN ISRAEL LAST YEAR THE CLINTON ADMINISTRATION FOLLOWING PAST PRACTICES WOULD MOST LIKELY VETO A RESOLUTION IMPOSING SANCTIONS AGAINST ISRAEL BUT THE US WANTS TO AVOID FRICTION AT THE UN WHERE IT'S WORKING WITH OTHER NATIONS TO ENFORCE SANCTIONS AGAINST IRAQ LIBYA AND THE FORMER YUGOSLAVIA THE COURT ACTION ALSO CREATES A PROBLEM FOR THE PALESTINE LIBERATION ORGANIZATION AND THE PALESTINIANS WHO ARE PARTICIPATING IN PEACE EFFORTS THEY ARE CALLING FOR THE UN PENALTIES UNLESS THE HAMAS MEMBERS ARE PERMITTED TO RETURN BUT ALSO THEY WANT TO RESUME PEACE TALKS TO HEAR THE NEW US ADMINISTRATION'S IDEAS HAMAS WOULD LIKE TO SCUTTLE THE PEACE TALKS AND THE PLO DOESN'T WANT TO GIVE A BIG VICTORY TO THE GROUP WHICH IS A RIVAL FOR THE LOYALTY OF PALESTINIANS IN THE ISRAELIOCCUPIED WEST BANK AND GAZA MR RABIN FOR HIS PART FINDS HIMSELF MANEUVERING BETWEEN THE DEMANDS OF THE ISRAELI PUBLIC WHICH OVERWHELMINGLY OPPOSES ALLOWING THE DEPORTEES TO RETURN EVEN IF THE UN IMPOSES SANCTIONS ON ISRAEL AND THE MINISTERS IN HIS OWN CABINET A MAJORITY OF WHOM FAVOR REPATRIATION ACCORDING TO A RECENT POLL IT'S VERY HARD WHEN PEOPLE ARE DUG IN AS THEY THE ISRAELIS AND PALESTINIANS ARE TO FIND AN ELEGANT SOLUTION SAID WILLIAM QUANDT A MIDEAST EXPERT AT THE BROOKINGS INSTITUTION IN WASHINGTON A CLINTON ADMINISTRATION OFFICIAL SAID THE US WANTS MR RABIN TO COME UP WITH A CREDIBLE PROCESS BECAUSE THAT WILL HELP WASHINGTON PERSUADE UN SECURITY COUNCIL MEMBERS TO DELAY A VOTE ON THE SANCTIONS RESOLUTION THE US OFFICIAL SAID THE PALESTINIANS NEED TO BE ASSURED THAT THE PERIOD OF EXPULSION FOR THE DEPORTEES WILL BE SHORTENED SOME ARAB DIPLOMATS ARE WORKING BEHIND THE SCENES TO PUT OFF A UN VOTE IMPOSING SANCTIONS ON ISRAEL THESE DIPLOMATS SAY THEY DON'T WANT TO UNDERMINE MR RABIN WHO THEY BELIEVE IS SERIOUSLY INTERESTED IN PURSUING PEACE AN ARAB DIPLOMAT ALSO SAID THAT MODERATE ARAB STATES DON'T WANT TO FORCE MR CLINTON TO VETO A UN RESOLUTION NOBODY WANTS TO EMBARRASS THE NEW PRESIDENT THE DIPLOMAT SAID ONE POSSIBLE WAY TO AVOID SUCH AN EMBARRASSMENT ACCORDING TO SOME DIPLOMATS WOULD BE FOR THE UN TO APPROVE A RESOLUTION CONDEMNING ISRAEL'S ACTION BUT NOT IMPOSING SANCTIONS THE UN APPROVED SUCH A RESOLUTION IN DECEMBER AND COULD DO SO AGAIN PERHAPS WITH HARSHER LANGUAGE THE US VOTED FOR THE RESOLUTION IN DECEMBER SECRETARY OF STATE WARREN CHRISTOPHER PLANS TO GO TO NEW YORK MONDAY FOR GENERAL TALKS WITH UN SECRETARY GENERAL BOUTROS BOUTROSGHALI AND THE ISSUE OF A UN RESOLUTION ON THE DEPORTEES IS EXPECTED TO BE HIGH ON THE AGENDA REGARDLESS OF WHAT MR RABIN DOES IT ISN'T CERTAIN THAT THE DEPORTEES WILL COOPERATE OVER THEIR OWN RETURN THEIR PLIGHT HAS WON THEM CONSIDERABLE WORLD SYMPATHY AND THEY HAVE NO INTEREST IN PROMOTING THE PEACE TALKS WITH ISRAEL LEA TSEMEL AN ATTORNEY FOR THE DEPORTEES SAID SHE WOULD RECOMMEND THAT HER CLIENTS NOT APPEAL THE EXPULSIONS SHE SAID THAT INTERNATIONAL PRESSURE ON ISRAEL WOULD RESULT IN THEIR RETURN MORE QUICKLY THAN THE ISRAELI LEGAL SYSTEM CLINTON OFFICIALS ARE CONCERNED ABOUT SALVAGING THE PEACE PROCESS ALREADY CONFRONTING PROBLEMS IN IRAQ SOMALIA AND FORMER YUGOSLAVIA THE ADMINISTRATION DOESN'T WANT TO FACE A FOREIGN POLICY FAILURE WITH THE COLLAPSE OF THE TALKS INITIATED DURING THE BUSH ADMINISTRATION THE PALESTINIANS SAY THEY WON'T RETURN TO WASHINGTON FOR MORE TALKS WITH ISRAEL UNTIL THE DEPORTEES ARE RETURNED THE US HAD HOPED TO HOLD THE NEXT ROUND IN FEBRUARY BUT FIRST THE DEPORTEE PROBLEM MUST BE HANDLED IN A WAY THAT WILL ALLOW THE PALESTINIANS TO DECLARE VICTORY AND MR RABIN TO SAY HE HAS MAINTAINED A TOUGH POLICY TOWARD HAMAS MR CHRISTOPHER IS EXPECTED TO TRAVEL TO THE MIDEAST NEXT MONTH TO GET ACQUAINTED WITH LEADERS THERE AND HE DOESN'T WANT THE DEPORTEE ISSUE TO DOMINATE THE TRIP IN ISRAEL MR RABIN SAID HE WAS HAPPY WITH THE COURT'S DECISION AND CONFIDENT THAT PRESIDENT CLINTON WOULD BLOCK ANY UN ATTEMPT TO IMPOSE SANCTIONS ON ISRAEL SPEAKING ON ISRAELI TELEVISION HE SAID HE COULDN'T IMAGINE PRESIDENT CLINTON TAKING THE MOST EXTREME ANTIISRAELI MEASURE BY ANY AMERICAN PRESIDENT IN 35 YEARS PARTICULARLY AS THE DEPORTATIONS ARE TEMPORARY AND NO ONE HAD BEEN KILLED OR INJURED 9301290033 930129 BUSINESS BRIEF CANDELA LASER CORP COMPANY REPORTS PROFIT FELL 97 FOR ITS FISCAL 2ND PERIOD CANDELA LASER CORP CITING RELIABILITY PROBLEMS WITH A NEW LASER SYSTEM REPORTED EARNINGS PLUNGED 97 IN ITS FISCAL SECOND QUARTER THE WAYLAND MASS MEDICAL LASER MAKER SAID SECONDQUARTER PROFIT WAS 24000 OR LESS THAN ONE CENT A SHARE FOR THE PERIOD ENDED JAN 2 COMPARED WITH PROFIT OF 814000 OR 16 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER RESULTS INCLUDED A TAX BENEFIT OF 255000 OR TWO CENTS A SHARE REVENUE ROSE 16 TO 99 MILLION FROM 85 MILLION IN OVERTHECOUNTER TRADING CANDELA CLOSED AT 6125 DOWN 875 CENTS CANDELA ATTRIBUTED ITS LOWER EARNINGS FOR THE SECOND QUARTER TO GROSS MARGIN DIFFICULTIES STEMMING FROM THE PROBLEMS WITH ITS RECENTLY INTRODUCED PLTL1 LASER FOR REMOVING TATTOOS THE COMPANY ADDED THAT IT HAS INTRODUCED A MAJOR DESIGN MODIFICATION TO THE SYSTEM AND UPGRADED MORE THAN HALF OF PREVIOUSLY INSTALLED PLTL1 SYSTEMS TO CORRECT THE PROBLEM THE COST OF THE MODIFICATION AND THE ASSOCIATED FIELD SERVICE EXPENSES ARE BEING ABSORBED AS INCURRED AND WILL CONTINUE TO IMPACT OUR GROSS MARGIN FOR THE REMAINDER OF THE FISCAL YEAR CANDELA SAID THE COMPANY ADDED THAT REVENUE FROM ITS DERMATOLOGY LASERS WAS UP 66 DURING THE FIRST SIX MONTHS OF ITS FISCAL YEAR 9301290032 930129 LEISURE & ARTS BOOKSHELF TWILIGHT OF THE TOADY BY JOE QUEENAN TWO YEARS AGO THE INCORRIGIBLE PUBLICITY HOUND GERALDO RIVERA PUBLISHED A LURID AUTOBIOGRAPHY IN WHICH HE VIOLATED CONFIDENCES BETRAYED FRIENDS TRUMPETED SEXUAL CONQUESTS HE MAY HAVE IMAGINED AND REPORTED CONVERSATIONS WITH THE RICH AND FAMOUS FOR WHICH THERE WERE NO CORROBORATING WITNESSES THE BOOK REVEALED THE ONCERESPECTED MR RIVERA WHOSE HEYDAY WAS THE 1970S TO BE EVEN MORE ODIOUS THAN THE REST OF US HAD IMAGINED BUT FROM MR RIVERA'S POINT OF VIEW IT FULFILLED THE DESIRED PURPOSE OF GIVING HIM ANOTHER BRIEF PERHAPS FINAL TURN IN THE SPOTLIGHT AT LEAST WE HOPE IT'S FINAL IT IS POSSIBLE TO THINK OF THOMAS HOVING'S MAKING THE MUMMIES DANCE SIMON & SCHUSTER 448 PAGES 25 AS AN UPSCALE VERSION OF MR RIVERA'S EXPOSING MYSELF WITH FEWER BABES AND MORE BOTTICELLIS LIKE MR RIVERA THE FORMER DIRECTOR OF THE METROPOLITAN MUSEUM OF ART IN NEW YORK STARTED OUT AS A RESPECTED AND EVEN ENVIED FIGURE WHO EVENTUALLY SELFDESTRUCTED BECAUSE OF HIS FASCINATION WITH HIMSELF A FASCINATION THAT OTHERS EVENTUALLY FOUND IMPOSSIBLE TO SHARE LIKE MR RIVERA MR HOVING CONVENIENTLY MISREMEMBERS DATES AND PLACES AND FACTS AND FIGURES HIS OLD NEMESIS THE NEW YORK TIMES HAS HAD A FIELD DAY WITH THE ERRORS IN THE BOOK LIKE MR RIVERA MR HOVING IS A CREATURE OF THE '70S WHO HAS NOW TAKEN ON A SOMEWHAT PATHETIC STATURE IN THE TWILIGHT OF HIS CAREER THE MOST SIGNIFICANT DIFFERENCE BETWEEN THE TWO MEN ASIDE FROM THE FACT THAT MR HOVING DOES NOT HAVE AN AWFUL MUSTACHE IS THAT WHILE MR RIVERA'S AUTOBIOGRAPHY IS VERY VERY BAD MR HOVING'S IS VERY VERY GOOD IT IS GOOD BECAUSE UNLIKE MR RIVERA MR HOVING DOES NOT APOLOGIZE FOR BEING A SYCOPHANT A WOMANIZER A PUBLICITY HOUND AND A GLORIFIED SHAKEDOWN ARTIST AND BECAUSE UNLIKE MR RIVERA MR HOVING CAN WRITE IN REASONABLY SMOOTH ENGLISH IN THIS UPPER EAST SIDE VERSION OF THE CONFESSIONS OF FELIX KRULL THE AUTHOR DEPICTS HIMSELF AS A CULTURE VULTURE OBSESSED WITH TRANSFORMING THE DOWDY OLD MET OF THE MID'60S INTO THE MOST EXCITING MOST IMPORTANT AND NOT LEAST MOST VISITED MUSEUM IN THE WORLD IF THAT OBSESSION INVOLVED LYING DEALING WITH SMUGGLERS FAWNING ALL OVER PEOPLE HE DESPISED OR YANKING A VELAZQUEZ PAINTING OUT OF ITS FRAME TO PEEK AT THE LINING WHILE THE AUCTION HOUSE RENTACOPS WEREN'T LOOKING SO BE IT GEORGE SANDERS WOULD HAVE DONE WONDERS WITH THE ROLE MAKING THE MUMMIES DANCE STARTS OFF IN TRADEMARK HYPERBOLIC FASHION AS MR HOVING ALLEGES THAT HIS PREDECESSOR WAS KILLED BY A BRAIN HEMORRHAGE BROUGHT ON BY A NASTY BOARD MEETING AT THE MET AT THE TIME THE 36YEAROLD MR HOVING WAS MAYOR JOHN LINDSAY'S COLORFUL PARKS COMMISSIONER AND HAD DEVELOPED A REPUTATION AS MR ENTERTAINMENT HE WOULD EMBELLISH THAT REPUTATION DURING HIS 10YEAR TENURE AT THE MET MOUNTING ONE BLOCKBUSTER SHOW AFTER THE OTHER MOST MEMORABLY THE TINY TREASURES OF KING TUT BEFORE HE WAS ESSENTIALLY FORCED OUT AFTER AN ABORTIVE ATTEMPT TO TURN PART OF THE MET INTO A MEDIA CENTER FUNDED BY WALTER ANNENBERG HE CREATED THE TEMPLATE FOR THE AMERICAN MUSEUM OF TODAY GIFT SHOPS POSTCARDS KNOCKOFFS OF SIXTHCENTURYBC FUNERAL URNS ONE COULD GIVE AUNT TILLY FOR CHRISTMAS RELEVANT EXHIBITIONS TO ATTRACT MINORITIES AND A GENERALLY FESTIVE NONCEREBRAL ATMOSPHERE HE WOULD ALSO POPULARIZE THE IDEA OF SELLING OFF DUSTY PARTS OF THE PERMANENT COLLECTION TO BUILD WAR CHESTS FOR GLAMOROUS ACQUISITIONS THOUGH THIS UNDERSTANDABLY DID NOT SIT WELL WITH AGING BENEFACTORS WHO WONDERED IF THEIR MET BEQUESTS WOULD END UP AT SOTHEBY'S FROM THE VERY START MR HOVING WAS DETERMINED TO OUTBID HIS COMPETITORS FOR THE GREATEST ARTWORKS TO COME ON THE MARKET HE FELT THAT HE NEEDED THESE HEADLINEMAKING ACQUISITIONS IN ORDER TO WOO MIDDLECLASS AMERICANS WHO HAD GROWN UP AWED EVEN FEARFUL OF ART HIS PRINCIPAL LEGACY IS TO BE FOUND IN BLOCKBUSTERS SUCH AS THE RECENT MATISSE MADHOUSE AT THE MUSEUM OF MODERN ART THOUGH MOST MUSEUMS NOW PONDER THE DISRUPTIVE EFFECTS OF SUCH SHOWS ON THEIR PERMANENT COLLECTIONS AND THE SANITY OF THEIR CURATORS IT COMES AS NO SURPRISE TO LEARN THAT MR HOVING'S FATHER WAS ONE OF THE FIRST MEMBERS OF MACY'S EXECUTIVE TRAINING PROGRAM AND ENDED UP RUNNING TIFFANY JUNIOR'S RETAILING SKILLS WERE OBVIOUSLY TRANSMITTED GENETICALLY THOUGH HE PROBABLY MISSED HIS TRUE CALLING CHIEF BUYER FOR BLOOMINGDALE'S TO THOSE WHO SUSPECT THAT THE ART WORLD IS AN EXTREMELY UNPLEASANT PLACE TEEMING WITH EXTREMELY UNSCRUPULOUS PEOPLE MR HOVING'S TITTLETATTLEFILLED MEMOIR OFFERS CONFIRMATION HE TELLS US THAT ONE COLLECTOR HE WAS COURTING USED TO FORCE HIS FEMALE CURATOR TO CUT HIS TOENAILS EVERY WEEK TERMS SUCH AS LOSER AND DUNCE ARE USED TO DESCRIBE PATRONS TRUSTEES AND COLLEAGUES A FORMER MET PRESIDENT IS SAID TO HAVE EYES LIKE DAYOLD OYSTERS WHILE A GENEROUS DOWAGER IS LIKENED TO A MAFIA MISTRESS MR HOVING ALSO TELLS TALES OUT OF SCHOOL ABOUT HIS OWN EXTRAMARITAL AFFAIRS AND THOSE OF HIS NO 2 TED ROUSSEAU NOW DEAD FOR NO REASON OTHER THAN TO BE MEAN HE DISCUSSES A PATRON'S CAVALIER ATTITUDE TOWARD THE SUICIDE OF HIS TWO DAUGHTERS IT WAS THEIR MOTHER'S BAD BLOOD AND EVEN RATS ON HIS OWN MOTHER A PILLPOPPER A TART AND A LUSH I HAVE NEVER HAD CLOSE FRIENDS HE ADMITS DO TELL BY THE END OF MAKING THE MUMMIES DANCE ONE FEELS A CERTAIN PITY FOR A MAN WHOSE CONTRIBUTIONS TO THE CULTURAL HISTORY OF THIS NATION HAVE BEEN LARGELY OVERSHADOWED BY HIS INCESSANT GRANDSTANDING AS HE LEAPS FROM ONE CHAPTER TO THE NEXT DESCRIBING IN NEVERENDING SUPERLATIVES THE PAINTING THE SCULPTURE THE TAPESTRY OR THE VASE THAT THE MET SIMPLY HAD TO HAVE REGARDLESS OF PRICE OR SORDID VENDOR ONE REALIZES THAT WHAT WE ARE DEALING WITH IS NOT SO MUCH AN ART LOVER AS AN ADDICT HIS WORD AND THAT BENEATH THE THICK VENEER OF CIVILIZATION COATING HIS PERSONALITY IS AN EXTRAORDINARILY VULGAR MAN IN THIS SENSE HE EMBODIES EVERYTHING THAT NEW YORK STANDS FOR CUPIDITY EXTRAVAGANCE LACK OF RESPECT FOR TRADITION AN INSATIABLE NEED TO BE AMUSED AND A VULGARITY THAT WOULD MAKE THE PHILISTINE GASP 9301290031 930129 INTERNATIONAL BRIEF DAF DUTCH NEED SEVERAL WEEKS TO GET RESTRUCTURING PLAN THE DUTCH ECONOMICS MINISTRY SAID IT WILL NEED SEVERAL WEEKS TO FINALIZE THE RESTRUCTURING PLAN AIMED AT GETTING ANGLO/DUTCH CASHSTRAPPED TRUCK MAKER DAF BACK ON TRACK THE DUTCH AND BELGIAN GOVERNMENTS DAF AND ITS CREDITORS LED BY ABN AMRO NV HAVE BEEN TALKING FOR FOUR DAYS WITHOUT REACHING AN AGREEMENT ON A FINANCIAL BAILOUT PACKAGE FOR DAF DUTCH TELEVISION LATE THURSDAY SAID THE COMPANY'S CREDITOR BANKS HAVE DEMANDED AN ACCOUNTANT'S ANALYSIS OF THE COMPANY AND ITS PROSPECTS BEFORE AGREEING TO ANY FINAL ACCORD THE NETHERLANDS GOVERNMENT IS REPORTEDLY WILLING TO INJECT SEVERAL HUNDRED MILLION GUILDERS OF EMERGENCY CAPITAL INTO DAF BY BUYING AN UNSPECIFIED AMOUNT OF SHARES TO BE ISSUED BY THE COMPANY THE GOVERNMENT OF THE BELGIAN REGION OF FLANDERS PREVIOUSLY SAID IT WOULD EXTEND DAF A LOAN EQUIVALENT TO 110 MILLION GUILDERS 617 MILLION DAF MAKES SOME COMPONENTS FOR ITS TRUCKS IN BELGIUM DAF IS ESTIMATED BY ANALYSTS TO REQUIRE BETWEEN 500 MILLION AND ONE BILLION GUILDERS OF FRESH CAPITAL TO ASSURE ITS CONTINUED EXISTENCE AS AN INDEPENDENT TRUCK MAKER SOME ESTIMATES PUT ITS BANK DEBT AT AS HIGH AS THREE BILLION GUILDERS 9301290030 930129 WHAT'S NEWS WORLDWIDE CLINTON AND NUNN HIT A SNAG OVER LIFTING A MILITARY BAN ON GAYS THE PRESIDENT AND THE CHAIRMAN OF THE ARMED SERVICES COMMITTEE DIDN'T RESOLVE THE ISSUE OF WHETHER HOMOSEXUALS IN THE MILITARY WOULD BE DISCHARGED DURING THE INTERIM PERIOD BETWEEN PRESIDENT CLINTON'S ANNOUNCEMENT THAT HE INTENDS TO LIFT THE BAN BY THE MIDDLE OF THE YEAR AND THE ACTUAL LIFTING OF THE BAN REPUBLICANS WERE PRESSING THE PRESIDENT NOT TO TAKE ANY IMMEDIATE ACTION ON THE MATTER THE WHITE HOUSE IS EXPECTED TO MAKE AN ANNOUNCEMENT ON THE BAN TODAY A FEDERAL JUDGE IN LOS ANGELES RULED THAT THE US MILITARY'S BAN ON HOMOSEXUALS IS UNCONSTITUTIONAL SAYING NAVY OFFICIALS HAD NO RIGHT TO DISCHARGE A HOMOSEXUAL SAILOR WHO HAS SINCE BEEN REINSTATED UNDER COURT ORDER ISRAEL'S HIGH COURT UPHELD THE DEC 17 DEPORTATION OF MORE THAN 400 PALESTINIANS TO SOUTHERN LEBANON ARABS PRESSED THE UN TO ENFORCE A RESOLUTION DEMANDING THE MEN'S RETURN BUT WASHINGTON ASKED THE SECURITY COUNCIL TO DEFER CONSIDERATION OF SANCTIONS AGAINST ISRAEL SAYING THE US WAS PURSUING A SOLUTION CLINTON IS PERCEIVED POSITIVELY BY 64 OF THOSE SURVEYED IN A WALL STREET JOURNAL/NBC NEWS POLL UP FROM 60 LATE LAST YEAR AND TWICE THE PERCENTAGE WHO HAD A POSITIVE VIEW OF HIM EIGHT MONTHS AGO MORE THAN A QUARTER OF THOSE POLLED SAY THEIR OPINION OF CLINTON HAS IMPROVED SINCE THE ELECTION HOUSE SPEAKER FOLEY SAID CAMPAIGN FINANCE REFORMS BEING PROPOSED BY DEMOCRATS WON'T TAKE EFFECT UNTIL AFTER THE CONGRESSIONAL ELECTIONS NEXT YEAR HE SAID THE POSTPONEMENT IS JUSTIFIED BECAUSE THE 1994 ELECTION CYCLE HAS ALREADY GOTTEN UNDER WAY YUGOSLAV BOATS STEPPED UP THEIR DEFIANCE OF UN SANCTIONS IGNORING ORDERS FROM BULGARIA AND ROMANIA TO STOP HAULING THOUSANDS OF TONS OF OIL INTO SERBIA ON THE DANUBE RIVER IN CROATIA MEANWHILE CROATIAN FORCES SEIZED A DAM INSIDE SERBIANHELD TERRITORY AND SAID RETREATING SERBS HAD SET OFF MINES THAT THREATENED THE STRUCTURE OREGON'S SEN PACKWOOD INTENDS TO CHALLENGE THE STORIES OF WOMEN WHO HAVE ACCUSED HIM OF SEXUAL HARASSMENT AND WON'T RULE OUT TRYING TO USE INFORMATION ABOUT THEIR SEXUAL HISTORIES IF IT WILL HELP HIM HE SAID HE WANTS THE SENATE ETHICS COMMITTEE TO HEAR FROM WITNESSES TO WHOM HIS ACCUSERS TOLD A DIFFERENT STORY PUERTO RICO'S GOVERNOR SIGNED A LAW MAKING BOTH ENGLISH AND SPANISH OFFICIAL LANGUAGES OF THE US TERRITORY GOV ROSSELLO WHO FAVORS STATEHOOD FOR PUERTO RICO DISMISSED AS A RHETORICAL STORM THE ARGUMENTS OF CRITICS WHO SOUGHT TO SAFEGUARD SPANISH'S 21MONTHOLD STATUS AS THE ISLAND'S SOLE OFFICIAL LANGUAGE FRANCE'S AMBASSADOR TO ZAIRE DIED AFTER BEING HIT BY A STRAY BULLET WHEN SOLDIERS OPENED FIRE IN KINSHASA FRENCH OFFICIALS SAID THE ZAIREAN SOLDIERS WERE ANNOYED BECAUSE THEY WERE PAID IN NEW BANKNOTES THAT THE INTERIM GOVERNMENT HAS DECLARED WORTHLESS TROOPS FROM TWO BARRACKS WENT ON A RAMPAGE THROUGH THE CAPITAL SECRETARY OF STATE CHRISTOPHER PLANS TO MEET MONDAY WITH UN CHIEF BOUTROSGHALI FOR DISCUSSIONS ON SOMALIA AND OTHER ISSUES US OFFICIALS SAID THE UN CHIEF SAID THIS WEEK THAT THE TRANSITION BETWEEN THE USLED FORCES AND THE UN COMMAND IN SOMALIA COULD TAKE SIX MONTHS PROMPTING CONCERN IN THE CLINTON ADMINISTRATION PERU'S SHINING PATH GUERRILLAS KILLED A MAYORAL CANDIDATE AND HIS WIFE IN A SHANTYTOWN NEAR LIMA AND DETONATED A CAR BOMB IN FRONT OF IBM'S OFFICES IN LA MOLINA INJURING FOUR PEOPLE WITNESSES SAID OFFICIALS SAID THE ATTACKS WERE PART OF AN EFFORT BY THE MAOIST REBELS TO DISRUPT TODAY'S NATIONWIDE MUNICIPAL ELECTIONS CAMBODIA'S RIVAL FACTIONS AGREED ON DATES FOR UNSUPERVISED LEGISLATIVE ELECTIONS MEETING IN BEIJING REPRESENTATIVES OF THE PHNOM PENH GOVERNMENT AND THREE FACTIONS DECIDED TO HOLD THE ELECTIONS MAY 2325 THE RADICAL KHMER ROUGE MISSED A DEADLINE TO REGISTER FOR THE VOTE THE ANGOLAN GOVERNMENT REACHED AN ACCORD WITH UNITA REBELS ON AN AGENDA FOR PEACE AS ARTILLERY BATTLES FLARED ACROSS THE COUNTRY BOTH SIDES AGREED TO DISCUSS THE RELEASE OF PRISONERS ESTABLISHMENT OF A TRUCE AND THE ROLE OF THE UN 9301290028 930129 MARKETING BRIEF CAPITAL CITIES/ABC INC HIGHER REVENUE CITED AS NET INCREASED 34 IN 4TH QUARTER CAPITAL CITIES/ABC INC SAID FOURTHQUARTER NET INCOME ROSE 34 PARTLY REFLECTING THE EFFECT OF A YEAREARLIER EXTRAORDINARY CHARGE AND PARTLY DUE TO HIGHER REVENUE AND LOWER INTEREST EXPENSE THE NEW YORK BROADCASTING COMPANY SAID NET INCOME WAS 1379 MILLION OR 838 A SHARE COMPARED WITH 1032 MILLION OR 617 A SHARE IN THE YEAREARLIER QUARTER THE 1991 FOURTHQUARTER RESULTS INCLUDED A 312 MILLION CHARGE FOR THE COST OF REDEEMING LONGTERM DEBT PRIOR TO MATURITY REVENUE ROSE 5 TO 164 BILLION FROM 156 BILLION THE COMPANY'S SHARES WERE UP 275 TO 481 IN AFTERNOON TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NET INCOME IN 1992 FELL 28 TO 2461 MILLION OR 1482 A SHARE COMPARED WITH 3435 MILLION OR 2047 A SHARE IN 1991 THE 1992 RESULTS REFLECT THE ADOPTION OF AN ACCOUNTING RULE FOR RETIREMENT HEALTH BENEFITS WHICH RESULTED IN A NONCASH CHARGE OF 548 MILLION OR 330 A SHARE AND ANOTHER ACCOUNTING RULE FOR INCOME TAXES WHICH RESULTED IN A NONCASH CHARGE OF 884 MILLION OR 533 A SHARE REVENUE IN 1992 FELL SLIGHTLY TO 534 BILLION FROM 538 BILLION 9301290027 930129 CORRECTIONS & AMPLIFICATIONS A JAN 25 ARTICLE ABOUT THE LOWERING OF DELTA AIR LINES' CREDIT RATING REPORTED SPECULATION ON WALL STREET AND IN THE INDUSTRY THAT MEMBERS OF DELTA'S BOARD WANT TO REPLACE RONALD W ALLEN THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS SPECULATION HOWEVER WAS NO MORE THAN RUMOR THOSE MENTIONING IT TO THE JOURNAL PROVIDED NO FACTS OR AUTHORITY ON WHICH TO BASE IT MERE RUMORS CAN BECOME NEWSWORTHY WHEN THEY MOVE MARKETS OR HAVE OTHER SUCH IMPACT THIS WAS NOT SUCH AN INSTANCE SO THE SPECULATION SHOULDN'T HAVE BEEN INCLUDED IN THE ARTICLE DIEBOLD INC MAKES AUTOMATED TELLER MACHINES VIDEO DISPENSING MACHINES AND SECURITY SYSTEMS AN ITEM IN YESTERDAY'S DIVIDEND NEWS COLUMN INCORRECTLY INCLUDED AUTOMATED FUEL SYSTEMS AMONG DIEBOLD'S BUSINESSES THAT BUSINESS HAS BEEN SOLD 9301290026 930129 BUSINESS BRIEF PFIZER INC FIRM'S UNIT CHARGED IN SUIT OVER FLAWED ARTIFICIAL HIPS PFIZER INC'S HOWMEDICA INC SUBSIDIARY HAS BEEN CHARGED IN A FEDERAL LAWSUIT WITH MANUFACTURING DEFECTIVE ARTIFICIAL HIPS THE SUIT FILED IN US DISTRICT COURT BY THE LAW FIRM GAINES & STERN CO SEEKS CLASS ACTION STATUS ON BEHALF OF MICHAEL KEARSE AND OTHER RECIPIENTS OF ARTIFICIAL HIP JOINTS MANUFACTURED FROM 1983 THROUGH 1990 BY HOWMEDICA THE ATTORNEYS SAY TENS OF THOUSANDS OF PEOPLE IN THE US MAY HAVE RECEIVED THE DEFECTIVE ARTIFICIAL HIP THE PLAINTIFFS CONTEND THAT THE PFIZER/HOWMEDICA HIP IS FUNDAMENTALLY FLAWED AND COULD CAUSE PHYSICAL AILMENTS AS DEGENERATION OF ADJACENT BONES AND BONE LESIONS THE PLAINTIFF ATTORNEYS SAID PFIZER/HOWMEDICA DISCONTINUED MANUFACTURING THE ARTIFICIAL HIP DESIGNATED THE PCA ONEPIECE ACETABULAR COMPONENT IN 1990 BUT IT SHOULD HAVE BEEN FULLY AWARE OF POTENTIAL DEFECTS AND DESIGN FLAWS IN THE HIP FROM THE OUTSET THE LAWSUIT WAS FILED LATE IN THE DAY AND A PFIZER SPOKESMAN SAID THE COMPANY IN CLEVELAND HADN'T SEEN IT 9301290025 930129 TWO MEXICAN AIRLINES WILL SEEK ALLIANCES STOP SHORT OF MERGER SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY TWO MEXICAN AIRLINES ANNOUNCED THAT THEY WILL WORK TO BUILD STRATEGIC ALLIANCES BUT DISAPPOINTED INVESTORS WHO HAD EXPECTED THEM TO UNVEIL A FULL MERGER PLAN HOWEVER WHILE MEXICAN AIRLINES AEROVIAS DE MEXICO SA AND CORP MEXICANA DE AVIACION SA SAID THAT AN OUTRIGHT FUSION ISN'T UNDER CONSIDERATION NOW THEY SAID THE ANTICIPATED ALLIANCES COULD LEAD TO A SHARE SWAP TO CONSOLIDATE THE RELATIONSHIP THE AIM OF A STRONGER RELATIONSHIP AEROMEXICO AND MEXICANA SAID WILL BE TO OPTIMIZE AND IMPROVE SERVICE REDUCE COSTS AND ACHIEVE GREATER COMPETITIVENESS AGAINST INTERNATIONAL RIVALS THE ALLIANCES WILL INVOLVE JOINT PURCHASES AND SUPPORT AND MAINTENANCE SERVICES AS WELL AS ADMINISTRATION OF INVENTORIES REPAIRS AND CARGO SERVICES THE COMPANIES SAID THAT THE RELATIONSHIP DOESN'T REPRESENT AN OUTRIGHT ABSORPTION OF MEXICANA BY AEROMEXICO AND THAT BOTH AIRLINES WILL MAINTAIN SEPARATE ADMINISTRATIONS AND CAPITAL STRUCTURES AND CONTINUE TO COMPETE FOR PASSENGERS A MERGER HAS BEEN WIDELY RUMORED SINCE LAST SUMMER WHEN AEROMEXICO BEGAN ACCUMULATING WHAT NOW AMOUNTS TO 11 OF MEXICANA'S SHARES IN AN EFFORT TO PERSUADE THE GOVERNMENT TO SELL ITS ONETHIRD STAKE IN MEXICANA CORP FALCON OWNS MOST OF MEXICANA MEXICANA IS BELEAGUERED BY SHORTTERM DEBT OF BETWEEN 120 MILLION AND 150 MILLION ANALYSTS SAY AS WELL AS HEFTY SEVERANCE PAYMENTS TO FORMER WORKERS AND PAYMENTS FOR THE RECENT ACQUISITION OF 15 AIRBUS INDUSTRIE JETS FOR THE FIRST NINE MONTHS OF 1992 MEXICANA REPORTED A LOSS OF 72 MILLION COMPARED WITH A FULLYEAR 1991 LOSS OF 409 MILLION AEROMEXICO REPORTED A 1992 NINEMONTH LOSS OF 53 MILLION COMPARED WITH A FULLYEAR 1991 PROFIT OF 11 MILLION 9301290024 930129 BUSINESS BRIEF DIAL CORP FIRM POSTS NET LOSS CHARGES RELATED TO DISPOSAL OF UNIT DIAL CORP POSTED A NET LOSS OF 489 MILLION OR 118 A SHARE AFTER 792 MILLION IN CHARGES RELATED MAINLY TO THE PLANNED DISPOSAL OF ITS BUSMANUFACTURING OPERATIONS IN THE YEAREARLIER QUARTER THE PHOENIX ARIZ CONSUMER PRODUCTS AND SERVICES CONCERN POSTED A NET LOSS OF 148 MILLION OR 373 A SHARE RESULTS WERE DEPRESSED BY CHARGES RELATED IN PART TO THE SPINOFF OF DIAL'S FORMER FINANCIAL AND INSURANCE OPERATIONS PROFIT FROM CONTINUING OPERATIONS ROSE 42 TO 328 MILLION FROM 231 MILLION THE COMPANY SAID REVENUE ROSE SLIGHTLY TO 8392 MILLION FROM 8301 MILLION DIAL SAID ITS RESULTS FOR THE FULL YEAR WERE DEPRESSED BY A ONETIME 115 MILLION CHARGE FOR ADOPTION OF A CHANGE IN ACCOUNTING FOR RETIREE MEDICAL BENEFITS THE ACCOUNTING CHANGE SLIGHTLY HURT FOURTHQUARTER RESULTS AND REQUIRED RESTATEMENT OF THE THREE PRIOR QUARTERS' RESULTS FOR THE FULL YEAR THE COMPANY POSTED A NET LOSS OF 815 MILLION OR 197 A SHARE REVENUE SLIPPED 3 TO 339 BILLION FROM 348 BILLION 9301290023 930129 CLINTON PACT ON HOMOSEXUALS IN MILITARY UNRAVELS BUT PLAN IS SET TO BE DISCLOSED BY THOMAS E RICKS AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON AND SEN SAM NUNN HIT A SNAG IN THE FRAGILE AGREEMENT THEY REACHED WEDNESDAY ON HANDLING THE LIFTING OF THE BAN ON HOMOSEXUALS IN THE MILITARY BUT THE WHITE HOUSE IS STILL EXPECTED TO ANNOUNCE TODAY A PLAN TO BEGIN LIFTING THE BAN IT'S MY UNDERSTANDING THE PRESIDENT HOPES TO MAKE A STATEMENT SOMETIME TOMORROW SEN NUNN CHAIRMAN OF THE ARMED SERVICES COMMITTEE SAID LATE LAST NIGHT AFTER HE AND SENATE MAJORITY LEADER GEORGE MITCHELL MET WITH THE PRESIDENT FOR MORE THAN AN HOUR THE PRESIDENT AND SEN NUNN WILL TALK AGAIN TODAY A WHITE HOUSE SPOKESWOMAN SAID THEY MADE PROGRESS AND THEY ARE CLOSE SHE ADDED THE ISSUE WAS WHETHER HOMOSEXUALS IN THE MILITARY WOULD BE DISCHARGED DURING THE INTERIM PERIOD BETWEEN PRESIDENT CLINTON'S ANNOUNCEMENT THAT HE INTENDS TO LIFT THE BAN BY THE MIDDLE OF THE YEAR AND THE ACTUAL LIFTING OF THE BAN EVEN IF SEN NUNN AND THE PRESIDENT REACH AN AGREEMENT MAJOR OBSTACLES STILL REMAIN BEFORE LAST NIGHT'S WHITE HOUSE MEETING SENATE MINORITY LEADER BOB DOLE SAID SENATE REPUBLICANS PROBABLY WOULD REACT TO WHITE HOUSE ACTION ON HOMOSEXUALS IN THE MILITARY BY INTRODUCING LEGISLATION TO CODIFY THE EXISTING MILITARY BAN IF HE STARTS MAKING CHANGES THEN REPUBLICANS WILL MOVE FOR A VOTE SEN DOLE ASSERTED NOT QUESTIONING RECRUITS AND NOT PUNISHING HOMOSEXUALS HE SAID WOULD BE A CHANGE AND THAT WOULD TRIGGER ACTION PROBABLY NEXT WEEK ASKED AFTER THE MEETING WHETHER HE EXPECTS A MAJOR LEGISLATIVE BATTLE SEN MITCHELL DECLARED YES THE PRESIDENT SUPPORTED BY HOMOSEXUAL GROUPS HOPED TO ANNOUNCE A MORATORIUM ON MILITARY DISCHARGES OF HOMOSEXUALS WHILE CONGRESS DEBATED LIFTING THE BAN AND THE PENTAGON WORKED OUT DETAILS OF THE ACTION SEN NUNN SUPPORTED BY THE MILITARY HAD ARGUED FOR CONTINUING THE DISCHARGES LAST NIGHT A COMPROMISE WAS DISCUSSED UNDER WHICH HOMOSEXUALS COULD BE TRANSFERRED BUT NOT DISCHARGED DURING THE INTERIM PERIOD SIMPLY FOR BEING HOMOSEXUAL IT APPEARS THAT HOMOSEXUAL CONDUCT AS OPPOSED TO ORIENTATION STILL WILL BE PROHIBITED DURING THE INTERIM PERIOD THE PRESIDENT SAID EARLIER IN THE DAY THAT HE AGREED WITH THE JOINT CHIEFS OF STAFF THAT ANY SORT OF IMPROPER CONDUCT SHOULD RESULT IN SEVERANCE WHAT CONSTITUTES IMPROPER CONDUCT HOWEVER IS AT THE HEART OF THE DEBATE MILITARY OFFICERS DEFINE THE PHRASE AS ANY HOMOSEXUAL ACTIVITY WHILE GAY ACTIVISTS DEFINE IT AS SEXUAL ASSAULT HARASSMENT OR OTHER VIOLATIONS UNDER THE AGREEMENT HAMMERED OUT IN ROUNDS OF MEETINGS THIS WEEK BETWEEN THE WHITE HOUSE PENTAGON AND MEMBERS OF THE SENATE PRESIDENT CLINTON IS LIKELY TO ANNOUNCE TODAY A TWOSTOPSANDONESTART PLAN FIRST THE MILITARY IMMEDIATELY WILL STOP ASKING RECRUITS ABOUT THEIR SEXUAL ORIENTATION THIS IS LIKELY TO PROVE RELATIVELY UNCONTROVERSIAL BECAUSE THE JOINT CHIEFS ALREADY HAVE TOLD PRESIDENT CLINTON THAT THEY WOULD ACCEPT THIS PROVISION THE SECOND STOP THE SUBJECT OF LAST NIGHT'S MEETING IS AN IMMEDIATE MORATORIUM ON DISCHARGING PERSONNEL FOR SIMPLY BEING HOMOSEXUAL THE WHITE HOUSE AND PENTAGON WOULD THEN START FIGURING OUT HOW THE BAN MIGHT BE LIFTED ON THE APPARENT UNDERSTANDING THAT BEFORE THE WHITE HOUSE ACTS IT WILL PRESENT ITS PROPOSAL TO CONGRESS FOR A VOTE WHATEVER AGREEMENTS ARE REACHED ARE SURE TO BE TESTED IN THE COURTS WHILE A BAN IS BEING DEBATED INDEED EVEN AS LAST NIGHT'S MEETING WAS BEGINNING THE NEWS ARRIVED THAT A FEDERAL JUDGE IN LOS ANGELES HAD RULED THAT THE NAVY'S BAN ON HOMOSEXUALS IS UNCONSTITUTIONAL ACCORDING TO WIRE SERVICE REPORTS US DISTRICT JUDGE TERRY HATTER SAID HE WAS BARRING THE NAVY FROM DISCHARGING OR DENYING ENLISTMENT TO ANY PERSON BASED ON SEXUAL ORIENTATION THE DECISION CONCERNED PETTY OFFICER KEITH MEINHOLD 9301290022 930129 NATIONAL BANK OF CANADA TO ACQUIRE GENERAL TRUSTCO UNITS MONTREAL NATIONAL BANK OF CANADA SAID IT AGREED IN PRINCIPLE TO BUY THE MAIN SUBSIDIARIES OF GENERAL TRUSTCO OF CANADA INC FOR AN ESTIMATED 125 MILLION CANADIAN DOLLARS US986 MILLION MARKING THE LATEST STEP TOWARD CONSOLIDATION OF CANADA'S FINANCIAL SERVICES INDUSTRY ANDRE BERARD NATIONAL BANK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE FINAL AMOUNT AND METHOD OF PAYMENT WOULD DEPEND ON A DUEDILIGENCE AUDIT SEPARATELY NATIONAL BANK SAID IT AGREED IN PRINCIPLE TO SELL ITS C925 MILLION IN LEASING ASSETS TO GENERAL ELECTRIC CO'S GE CAPITAL UNIT NATIONAL BANK SAID THE SALE WOULD GIVE THE BANK A PRETAX GAIN OF ABOUT C25 MILLION REPRESENTING THE PREMIUM GE WOULD PAY FOR THE ASSETS WITH C40 BILLION IN ASSETS NATIONAL BANK IS THE SMALLEST OF CANADA'S SIX MAJOR BANKS BUT HAS THE MOST EXTENSIVE BRANCH NETWORK IN THE FRENCHSPEAKING PROVINCE OF QUEBEC THE PROPOSED PURCHASE OF GENERAL TRUSTCO'S GENERAL TRUST AND SHERBROOKE TRUST UNITS WILL ENABLE NATIONAL BANK TO IMMEDIATELY OFFER ITS CUSTOMERS TRUST SERVICES WHICH ARE FIRMLY ESTABLISHED IN QUEBEC MR BERARD SAID BOTH NATIONAL BANK AND GENERAL TRUSTCO ARE BASED IN MONTREAL GENERAL TRUST AND SHERBROOKE TRUST HAVE ASSETS OF C36 BILLION AND MANAGE ASSETS WORTH C11 BILLION BUT GENERAL TRUSTCO HAS HAD ITS SHARE OF BAD LOANS FOR THE NINE MONTHS ENDED LAST SEPT 30 THE COMPANY POSTED A LOSS OF C144 MILLION OR 42 CENTS A SHARE NATIONAL BANK ALREADY HOLDS A 56 STAKE IN GENERAL TRUSTCO WHICH IS 76OWNED BY INDUSTRIALALLIANCE LIFE INSURANCE CO A QUEBEC MUTUAL FIRM IN MONTREAL EXCHANGE TRADING GENERAL TRUSTCO CLOSED AT C1 DOWN 65 CENTS NATIONAL BANK WAS UNCHANGED AT 738 GENERAL TRUSTCO'S STOCK PRICE MAY HAVE SUFFERED FROM CONCERNS THAT THE COMPANY WILL BE SADDLED WITH PROBLEM REALESTATE ASSETS AFTER THE SALE OF ITS MAIN UNITS 9301290021 930129 AMOSKEAG MAY SELL ITS MAJORITY STAKE IN FIELDCREST CANNON EDEN NC FIELDCREST CANNON INC SAID ITS LARGEST SHAREHOLDER IS CONSIDERING SELLING ITS STAKE IN THE TEXTILE COMPANY NEWS OF THE DEVELOPMENT HELPED PUSH FIELDCREST'S STOCK PRICE TO 23625 A SHARE YESTERDAY UP 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN A FILING LATE WEDNESDAY WITH THE SECURITIES AND EXCHANGE COMMISSION THE SHAREHOLDER AMOSKEAG CO SAID ITS OWN MAJOR SHAREHOLDER DUMAINES TRUSTS IS REVIEWING ITS INVESTMENT IN AMOSKEAG WITH A VIEW TO A POSSIBLE REDUCTION OR LIQUIDATION A SPOKESMAN FOR AMOSKEAG A HOLDING COMPANY BASED IN BOSTON WITH INTERESTS IN TEXTILES TRANSPORTATION AND OTHER BUSINESSES DECLINED TO ELABORATE AMOSKEAG OWNS APPROXIMATELY 30 OF THE EQUITY OF FIELDCREST AND CONTROLS APPROXIMATELY 81 OF THE VOTING STOCK DUMAINES TRUSTS IN TURN OWNS APPROXIMATELY 664 OF THE VOTING EQUITY OF AMOSKEAG ACCORDING TO FIELDCREST AMOSKEAG HAS CONTROLLED FIELDCREST SINCE 1953 WITH 81 OF THE VOTING RIGHTS POSSIBLY ON THE AUCTION BLOCK STRATEGIC BUYERS WILL BE VERY INTERESTED PREDICTED GARY JACOBSON AN ANALYST WITH KIDDER PEABODY & CO IN NEW YORK THE DISCLOSURE ALSO CAUSED AMOSKEAG'S OWN THINLY TRADED STOCK TO SOAR 4125 A SHARE TO CLOSE AT 2425 IN OVERTHECOUNTER TRADING FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY REPORTED NET INCOME OF 74 MILLION OR 67 CENTS A SHARE AFTER A 52 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT COMPARED WITH NET INCOME OF 735000 OR SEVEN CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 21 TO 8884 MILLION FROM 8694 MILLION 9301290020 930129 DELTA UAL AND CONTINENTAL REPORT LOSSES ATLANTA AIRLINE CUTS COSTS BY SLASHING DIVIDEND PRESIDENT WILL RETIRE BY BRIDGET O'BRIAN AND BRETT PULLEY STAFF REPORTERS OF THE WALL STREET JOURNAL THREE MAJOR AIRLINES REPORTED LOSSES FOR THE QUARTER ENDED DEC 31 WHILE ONE OF THEM DELTA AIR LINES TOOK FURTHER ACTION TO CUT COSTS AND ANNOUNCED THE RETIREMENT OF ITS PRESIDENT DELTA'S BOARD AS EXPECTED VOTED YESTERDAY TO CUT THE QUARTERLY DIVIDEND ON COMMON STOCK TO FIVE CENTS FROM 30 CENTS DELTA EXECUTIVES HAD RECOMMENDED THE ACTION LAST MONTH AS PART OF A WIDERANGING PACKAGE OF COST CUTS WHILE THE CUT IS A SHARP ONE DELTA WAS AMONG THE FEW AIRLINES THAT STILL HAS SUCH A PAYOUT AND EVEN AT THIS DRASTICALLY REDUCED RATE IT IS STILL THE HIGHEST SEPARATELY DELTA SAID ITS PRESIDENT W WHITLEY HAWKINS WOULD RETIRE EFFECTIVE MARCH 1 WHILE THE RETIREMENT OF THE 61YEAROLD MR HAWKINS APPEARS SUDDEN BOTH HE AND CHAIRMAN RONALD W ALLEN SAID IT WAS ACTUALLY OVERDUE MR HAWKINS HAD WANTED TO RETIRE TWO YEARS AGO BUT HE STAYED TO HELP SUPERVISE DELTA'S INTEGRATION OF ITS INTERNATIONAL OPERATIONS WITH NEWLY ACQUIRED EUROPEAN ROUTES FROM PAN AM CORP MR ALLEN WILL ADD THE PRESIDENT'S TITLE TO HIS CURRENT PORTFOLIO OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER THAT PUTS THE 52YEAROLD EXECUTIVE FIRMLY IN CHARGE OF THE AIRLINE AND EFFECTIVELY COUNTERS TALK THAT DELTA'S BOARD WAS DISSATISFIED WITH HISAND THE COMPANY'SRECENT PERFORMANCE DELTA HAS STRONGLY DISPUTED SUCH REPORTS AS DID MR ALLEN AT A NEWS CONFERENCE YESTERDAY I SMILE WHEN I HEAR THOSE RUMORS MR ALLEN SAID ADDING THAT HE EXPECTS THEM WHEN DELTA AND INDEED THE INDUSTRY ARE GOING THROUGH SUCH DIFFICULT TIMES AS FOR DISSATISFACTION FROM THE BOARD THEY ARE SOLIDLY BEHIND US HE SAID ONE REASON FOR THE RUMORS IS DELTA'S CONTINUING DEFICITS WHICH FOR THE QUARTER ENDED DEC 31 WAS A NET LOSS OF 1263 MILLION OR 304 A SHARE ON REVENUE OF 287 BILLION MR ALLEN SAID HE ACTUALLY WAS PLEASED WITH THE RESULTS WHICH REFLECT THE BEGINNING OF A TURNAROUND FOR DELTA AND SHOW THE RESULTS OF HEAVY COSTCUTTING IN RECENT MONTHS THE ATLANTABASED AIRLINE PLANS TO ELIMINATE 375 MILLION IN COSTS FOR FISCAL 1993 WHICH ENDS IN JUNE IN THE YEARAGO QUARTER DELTA HAD A NET LOSS 1876 MILLION OR 389 A SHARE ON REVENUE OF 262 BILLION MR ALLEN SAID DELTA'S HEAVY LOSSES LAST YEAR COULD BE BLAMED ON FARE WARS AT THE SAME TIME DELTA HASN'T BEEN ABLE TO BOOST REVENUE BECAUSE TRAFFIC REMAINS SOFT WHILE DELTA ALREADY HAS CUT HEAVILY HE DIDN'T RULE OUT THE POSSIBILITY OF FURTHER CUTS FOR THE SIX MONTHS DELTA HAD A NET LOSS OF 233 MILLION OR 568 A SHARE ON REVENUE OF 593 BILLION A YEAR AGO DELTA HAD A LOSS OF 1745 MILLION OR 372 A SHARE ON REVENUE OF 519 BILLION SAM BUTTRICK AN ANALYST WITH KIDDER PEABODY AGREED WITH MR ALLEN'S ASSESSMENT THAT DELTA'S PERFORMANCE APPEARS TO HAVE IMPROVED UNLIKE THEIR COMPETITORS THEIR LOSS WAS LESS THAN LAST YEAR'S HE SAID AND THEY LOST LESS THAN EITHER UNITED OR AMERICAN DELTA SHARES FELL 125 CENTS TO 51 ON THE NEW YORK STOCK EXCHANGE THE FOURTHQUARTER NET LOSS AT UAL CORP UNITED AIRLINES' PARENT WAS 2239 MILLION OR 927 A SHARE THE CHICAGOBASED COMPANY'S RESULTS INCLUDED PRETAX CHARGES AND EXPENSES OF 62 MILLION IN THE YEAREARLIER PERIOD UAL POSTED A NET LOSS OF 2526 MILLION OR 1069 A SHARE THE PREVIOUS PERIOD INCLUDED 130 MILLION OF PRETAX CHARGES REVENUE FOR THE QUARTER WAS 32 BILLION UP 10 FROM THE PREVIOUS YEAR'S 291 BILLION CALLING THE RESULTS UNACCEPTABLE UAL CHAIRMAN AND CHIEF EXECUTIVE STEPHEN M WOLF REITERATED THE COMPANY'S PLANS TO REDUCE OPERATING EXPENSES BY 400 MILLION SINCE THERE SEEMS TO BE NO END TO FARE WARS OR BEGINNING TO A STRONGER ECONOMY THE COMPANY THIS WEEK CUT SOME 2800 JOBS FROM ITS ROSTER OF 83000 WORKERS RESULTING IN A 25 MILLION CHARGE WHICH IS PART OF THE FOURTH QUARTER'S 62 MILLION CHARGE UAL SAID A SEPARATE PROPOSAL TO CUT UNION WAGES AND BENEFITS HAS NOT BEEN EMBRACED BY THE AIRLINE'S LABOR REPRESENTATIVES MR WOLF ACKNOWLEDGED FORCING UNITED TO LOOK FOR OTHER WAYS TO REDUCE EXPENSES HE CONFIRMED EARLIER REPORTS THAT UNITED IS CURRENTLY IN DISCUSSIONS WITH BOEING CO TO REDUCE SIGNIFICANTLY ITS AIRCRAFT ON ORDER AND OPTION THOMAS LONGMAN AN AIRLINE INDUSTRY ANALYST AT BEAR STEARNS & CO NOTED THAT EVERY NEW PLANE DELIVERED NETS AN ESTIMATED 12 NEW PILOT JOBS AND 25 FLIGHT ATTENDANT POSITIONS THE IMPLICATION IS IF WE DON'T GET PAY CUTS THAN WE WILL HAVE TO DELAY THE DELIVERY OF NEW PLANES MR LONGMAN SAID HE ADDED THAT HE WAS DISAPPOINTED NOT ONLY BY UNITED'S EARNINGS BUT ALSO BY ITS INABILITY TO INCREASE THE AMOUNT OF REVENUE IT RECEIVES FOR EACH PAYING PASSENGER IN THE FOURTH QUARTER UNITED SAID ITS REVENUE PASSENGER YIELD DECLINED 32 FROM THE YEAREARLIER PERIOD FOR ALL OF 1992 UAL POSTED A NET LOSS OF 9568 MILLION OR 3975 A SHARE INCLUDING A ONETIME 540 MILLION CHARGE DUE TO ACCOUNTING CHANGES IN 1991 THE COMPANY POSTED A NET LOSS OF 3319 MILLION OR 1431 A SHARE REVENUE FOR ALL OF 1992 WAS 1289 BILLION A 10 INCREASE OVER 1991'S 1166 BILLION UAL SHARES FELL 325 TO 12225 IN NEW YORK STOCK EXCHANGE TRADING CONTINENTAL AIRLINES HOLDINGS INC REPORTED WIDER FOURTHQUARTER LOSSES PRIMARILY BECAUSE OF A SLEW OF CHARGES ON AN OPERATING BASIS HOWEVER THE PARENT OF CONTINENTAL AIRLINES HAD A LOSS OF 437 MILLION ESSENTIALLY FLAT COMPARED WITH YEARAGO RESULTS THE AIRLINE BLAMED ITS POOR RESULTS ON THE WEAK ECONOMY AND THE PREDATORY PRICING THRUST WITHIN THE INDUSTRY CONTINENTAL WHICH HAS BEEN OPERATING IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE DECEMBER 1990 SAID IT EXPECTS TO EMERGE FROM CHAPTER 11 IN THE NEXT FEW MONTHS FOR THE QUARTER CONTINENTAL HOLDINGS HAD A LOSS OF 14 MILLION OR 30 CENTS A SHARE COMPARED WITH YEARAGO NET OF 44 MILLION OR THREE CENTS A SHARE DESPITE HUGE REORGANIZATION CHARGES IN BOTH QUARTERS THE 1992 RESULTS INCLUDE NET GAINS OF 591 MILLION AND 1991 FIGURES INCLUDE NET GAINS OF 82 MILLION REVENUE WAS FLAT AT 135 BILLION FOR THE YEAR CONTINENTAL HAD A LOSS OF 1253 MILLION OR 270 A SHARE COMPARED WITH A LOSS OF 3057 MILLION OR 674 A SHARE A YEAR EARLIER IN 1992 THE COMPANY HAD NET GAINS OF 985 MILLION IN THE PREVIOUS YEAR THE NET GAINS WERE 625 MILLION REVENUE INCREASED SLIGHTLY TO 557 BILLION 9301290019 930129 REPSOL'S PRUDENCE MAINTAINS ITS IMAGE AS A STEADY PERFORMER FOR INVESTORS BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL MADRID OIL REFINER REPSOL SA BECAME A DARLING OF INVESTORS SEEKING A SHARE IN SPAIN'S RAPID GROWTH ALMOST IMMEDIATELY UPON ITS FORMATION IN 1987 THE FACT THAT IT RETAINS ITS ALLURE IN THESE DAYS OF FALLING OIL COMPANY PROFITS AND WAFERTHIN MARGINS IN REFINING AND MARKETING IS TESTIMONY TO THE SKILLS OF CHAIRMAN OSCAR FANJUL AND HIS TEAM OF MANAGERS REPSOL'S MANAGEMENT IS VERY PROFESSIONAL SAYS SUSAN SCOTT AN ANALYST AT JAMES CAPEL IN LONDON HER VIEW IS ECHOED BY OTHERS THEY'VE AVOIDED MISTAKES SAYS ALAN MARSHALL AT SWISS BANK CORP IN LONDON WHO ADDS THAT A LOT CAN BE SAID FOR CONSERVATISM AND BIDING YOUR TIME MR FANJUL ISN'T AVERSE TO TAKING CALCULATED RISKS BUT HE ADDS HE ISN'T IN A HURRY MR FANJUL WON'T PAY HIGH PRICES TO BUY GROWTH OR ASSETS FOR THE SPANISH OIL COMPANY AND HE ONLY ALLOWS CAUTIOUS TESTING OF MARKETS OUTSIDE SPAIN WHEN ASSETS ARE QUITE EXPENSIVE ONE HAS TO GO SLOWLY MR FANJUL SAYS IN AN INTERVIEW HE SAYS HE IS SKEPTICAL ABOUT THE POSSIBILITY OF MAJOR ACQUISITIONS BECAUSE REFINERIES AND MARKET POSITIONS THAT HAVE BEEN SOLD RECENTLY HAVE BEEN EXPENSIVE INSTEAD REPSOL IS CONSOLIDATING ITS ALREADY EMINENT POSITION IN SPAIN UPGRADING ITS REFINERIES AND ADDING SERVICE STATIONS IN A GROWING MARKET WE WANT TO BE VERY CONFIDENT THAT WE CAN MANAGE OUR ASSETS AND OUR BASIC EFFORT HAS BEEN TO DO THIS IN SPAIN HE SAYS ENERGY CONSUMPTION IN SPAIN IS STILL LOW BUT IS INCREASING HE SAYS REPSOL PLANS TO SPEND 787 BILLION PESETAS 704 BILLION BETWEEN NOW AND 1997 WITH MORE THAN 55 OR 438 BILLION PESETAS EARMARKED FOR REFINING AND MARKETING THESE ACTIVITIES WHICH ACCOUNT FOR WELL OVER TWOTHIRDS OF ITS TOTAL ASSETS AND REVENUE DOMINATE REPSOL REPSOL'S SHARE OF SPAIN'S PETROLEUMPRODUCTS MARKET IS MORE THAN 60 WE WANT TO KEEP OUR MARKET SHARE MR FANJUL SAYS BUT HE IS ALSO MINDFUL OF SALES VOLUME STILL HE RESISTS THE LURE OF QUICK EXPANSION WE ARE NOT TRYING TO BE EXXON OR SHELL OR MOBIL HE SAYS YOU HAVE TO BE REALISTIC AS FOR DIVERSIFYING HE SAYS SIMPLY WE ARE IN THE BUSINESS OF OIL PETROCHEMICALS AND GAS REPSOL IS BUSY CONSOLIDATING WE ARE NEW WE ARE VERY YOUNG SAYS MR FANJUL WHO HAS BEEN REPSOL'S CHAIRMAN SINCE IT WAS FORMED IN 1987 THROUGH THE MERGER OF A CLUTCH OF STATEOWNED COMPANIES WE HAVE BEEN INTRODUCING SINGLECOMPANY SYSTEMS A SINGLE CULTURE INFORMATION SYSTEMS AND SO ON HE SAYS THERE IS ROOM FOR THE GROWTH OF OUR PROFIT AND THERE IS ROOM PARTICULARLY FOR INCREASING OUR EFFICIENCY REPSOL IS PERHAPS THE ONLY EUROPEAN OIL COMPANY STILL ON BUY LISTS BUT GOVERNMENT PLANS TO OFFER MORE SHARES THIS SPRING HAVE LED SOME ANALYSTS TO RECOMMEND HOLDING OFF UNTIL THE OFFER'S TERMS ARE DISCLOSED IT MIGHT BE A GOOD CHANCE FOR INSTITUTIONAL INVESTORS TO INCREASE THEIR POSITIONS SAYS VALERIE KRAMER AN ANALYST AT FG INVERSIONES BURSATILES SA AN INDEPENDENT BROKERAGE HOUSE IN MADRID THE PLANNED OFFER WOULD CUT THE GOVERNMENT'S REPSOL STAKE TO BELOW 50 FROM 545 THE GOVERNMENT WILL DECIDE THE ISSUE'S TIMING SIZE AND PRICE CURRENT PLANNING ENVISIONS AN OFFER OF AT LEAST 500 MILLION OR ABOUT 7 OF REPSOL THOUGH THE FINAL FIGURE MAY BE HIGHER THE OFFER WILL TARGET WORLDWIDE INSTITUTIONAL INVESTORS WITH ONE PORTION DESTINED FOR THE US UNTIL MAY 1989 GOVERNMENT HOLDING COMPANY INSTITUTO NACIONAL DE HIDROCARBUROS HELD ALL OF REPSOL THEN 27 WAS SOLD TO INVESTORS IN SPAIN AND ABROAD THE STOCK ALSO WAS LISTED ON THE NEW YORK STOCK EXCHANGE REPSOL'S TWO OTHER LARGEHOLDERS ARE MEXICAN STATE OIL COMPANY PETROLEOS DE MEXICANOS OR PEMEX WITH ABOUT 5 AND BANCO BILBAO VIZCAYA WITH 4 WHILE ITS COMPETITORS HAVE BEEN REPORTING PLUNGING 1992 EARNINGS REPSOL HAS MANAGED TO KEEP PROFITS ABOUT STEADY WITH 1991 MR FANJUL DECLINES TO PROVIDE ESTIMATES BUT SAYS THE TREND WILL BE SIMILAR TO HALFYEAR RESULTS FOR THE FIRST HALF OF 1992 REPSOL SAID NET WAS LITTLE CHANGED AT 40604 BILLION PESETAS FROM 40555 BILLION PESETAS IN THE YEAREARLIER PERIOD NET FOR THE FIRST NINE MONTHS EDGED UP TO 5518 BILLION PESETAS FROM 5491 BILLION PESETAS A YEAR EARLIER ANALYSTS RECKON REPSOL WILL POST A 3 TO 35 GAIN IN 1992 NET WE'VE ESTIMATED 727 BILLION PESETAS SAYS MS KRAMER BUT SHE ACKNOWLEDGES THAT EXTRAORDINARY ITEMS MIGHT SKEW RESULTS ANALYSTS EXPECT REPSOL TO CONTINUE TO REWARD ITS INVESTORS HANDSOMELY FOR YEARS TO COME THOUGH THE OVERALL OIL SECTOR IS CONSIDERED EXPENSIVE AT THE MOMENT AND THE CHARM OF INVESTING IN SPAIN HAS EBBED AS GROWTH SLOWS 9301290018 930129 BUSINESS BRIEF DATA GENERAL WINS DAMAGES IN LAWSUIT OVER GRUMMAN UNIT BOSTON DATA GENERAL CORP WAS AWARDED DAMAGES BY A US DISTRICT COURT JURY HERE IN A SOFTWARE COPYRIGHT INFRINGEMENT SUIT AGAINST GRUMMAN CORP THE TWO COMPANIES DISPUTED THE AMOUNT OF THE AWARD DATA GENERAL SAID IT WAS AWARDED 523 MILLION WHILE GRUMMAN PUT THE AMOUNT AT 427 MILLION THE JURY RULED THAT GRUMMAN'S GRUMMAN SYSTEMS SUPPORT CORP UNIT BETHPAGE NY MUST PAY DATA GENERAL 364 MILLION IN DAMAGES AND INTEREST OF ABOUT 159 MILLION DATA GENERAL SAID DATA GENERAL WESTBORO MASS SAID THE LITIGATION BEGAN IN 1988 WHEN IT FILED SUIT AGAINST GRUMMAN ALLEGING COPYRIGHT INFRINGEMENT AND MISAPPROPRIATION OF TRADE SECRETS RELATING TO GRUMMAN'S USE OF DATA GENERAL'S MV/ADEX DIAGNOSTIC SOFTWARE THE LAWSUIT ALLEGED THAT THE GRUMMAN UNIT WAS IMPROPERLY USING THE SOFTWARE TO SERVICE DATA GENERAL COMPUTERS A SPOKESMAN FOR DATA GENERAL SAID GRUMMAN COUNTERSUED DATA GENERAL ALLEGING ANTITRUST VIOLATIONS AND INTERFERENCE WITH GRUMMAN CUSTOMERS GRUMMAN'S CLAIMS WERE PREVIOUSLY DISMISSED BY THE COURT DATA GENERAL SAID DATA GENERAL ADDED THAT IT EARLIER WAS GRANTED A PRELIMINARY INJUNCTION THE US DISTRICT COURT IN BOSTON PROHIBITING GRUMMAN FROM COPYING USING OR POSSESSING ANY PORTION OF DATA GENERAL'S MV/ADEX SOFTWARE IN THE LATEST DECISION THE BOSTON JURY FOUND THAT GRUMMAN HAD CONTINUED TO USE THE MV/ADEX SOFTWARE EVEN AFTER THE COURT HAD IMPOSED THE PRELIMINARY INJUNCTION DATA GENERAL SAID GRUMMAN SAID IT WILL APPEAL THE VERDICT THE COMPANY DISPUTED DATA GENERAL'S REPORT OF THE DAMAGE AWARD SAYING THE TOTAL IS ACTUALLY 427 MILLION THAT INCLUDES 274 MILLION IN COMPENSATORY DAMAGES FOR THE COPYRIGHT INFRINGEMENT AND TRADE SECRET VIOLATION 63 MILLION IN INTEREST ON THE COPYRIGHT INFRINGEMENT AND AN ADDITIONAL 9 MILLION ADDED BY THE JUDGE UNDER A MASSACHUSETTS TRADESECRET STATUTE ROBERT S FRANK AN ATTORNEY WITH CHOATE HALL & STEWART IN BOSTON WHO REPRESENTED DATA GENERAL IN THE CASE ASSERTED THAT GRUMMAN MISCALCULATED THE INTEREST THAT THE JURY AWARDED TO DATA GENERAL HE ADDED THAT THE INTEREST TOTALS 159 MILLION RATHER THAN THE 63 MILLION ASSERTED BY GRUMMAN THE FEDERAL DISTRICT JUDGE IN THE CASE COULDN'T BE REACHED FOR COMMENT 9301290017 930129 RESTLESS NATIVES WHILE HEAD OF CALPERS LECTURES OTHER FIRMS HIS OWN BOARD FRETS CALIFORNIA PENSION FUND HAS SOME SHAKY REAL ESTATE WOBBLY ADMINISTRATION PROS AND CONS OF ACTIVISM BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SACRAMENTO CALIF ONE OF AMERICA'S LEADING SHAREHOLDER ACTIVISTS DALE HANSON IS STARTING TO GET A TASTE OF HIS OWN MEDICINE MR HANSON HEAD OF THE 72 BILLION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM LIKES TO ADMONISH BIG COMPANIES WITH POOR STOCKMARKET PERFORMANCE THANKS TO THE POWER OF CALPERS'S HUGE STOCK HOLDINGS HE HAS TURNED HIS JOB INTO A BULLY PULPIT FOR SHAREHOLDERS' RIGHTS CALPERS'S RECENT TARGETS HAVE INCLUDED GIANTS SUCH AS GENERAL MOTORS CORP WESTINGHOUSE ELECTRIC CORP AND SEARS ROEBUCK & CO MR HANSON IS HARDLY THE ONLY OUTSIDER TO BEAR DOWN ON DIRECTORS OF THESE CORPORATIONS BUT HE HAS AN UNCANNY KNACK FOR MAKING HIS VOICE HEARD JUST BEFORE A SHAKEUP IN THE PAST YEAR THE BOARDS OF MORE THAN HALF OF THE BIG COMPANIES CALPERS HAS TARGETED HAVE ENDED UP DOING WHAT IT WANTED RANGING FROM MEETING MORE OFTEN WITH BIG SHAREHOLDERS TO SELLING OFF MAJOR DIVISIONS IN AN EFFORT TO LIFT THEIR STOCK PRICES AS MR HANSON WHIZZES AROUND THE US GOADING CORPORATE DIRECTORS THOUGH SOME AWKWARD PROBLEMS HAVE ARISEN BACK HOME CALPERS'S OWN INVESTMENT RESULTS HAVE DETERIORATED OVER THE PAST SEVERAL YEARS MOSTLY BECAUSE OF A HUGE ILLTIMED BET IN REAL ESTATE IN ADDITION THE DAYTODAY OPERATIONS OF CALPERS WHICH WRITES PENSION CHECKS FOR MORE THAN 275000 CALIFORNIA GOVERNMENT RETIREES ARE WIDELY SEEN AS NEEDING AN OVERHAUL AS A RESULT THE 49YEAROLD MR HANSON IS STARTING TO FEEL PRESSURE FROM HIS OWN 11MEMBER BOARD THESE DIRECTORS GENERALLY SALUTE MR HANSON'S SHAREHOLDERRIGHTS CRUSADE WHICH AFTER ALL IS AIMED AT IMPROVING CALPERS'S OWN PERFORMANCE BUT AT LEAST FIVE OF THEM SAY THEY DON'T WANT IT TO COME AT THE EXPENSE OF RUNNING CALPERS ITSELF BEHIND THE SCENES IN FACT CALPERS DIRECTORS LATELY HAVE BEEN NUDGING MR HANSON TO FOCUS MORE CLOSELY ON HIS MAIN DUTIES CORPORATE GOVERNANCE HAS ITS PLACE BUT IT'S JUST ONE SMALL PART OF WHAT WE DO SAYS JAKE PETROSINO A CALPERS DIRECTOR HE WANTS MR HANSON TO PAY MORE ATTENTION TO CALPERS'S BENEFITSSERVICE SIDE AND TO DELEGATE CORPORATE GOVERNANCE WORK SO IT DOESN'T BECOME A PREOCCUPATION EQUALLY WARY IS KATHLEEN BROWN CALIFORNIA'S TREASURER AND ONE OF THE MOST INFLUENTIAL CALPERS DIRECTORS WHERE DALE'S STRENGTHS ARE ON SHAREHOLDER ISSUES HE SHOULD PLAY TO THEM SHE SAYS BUT HIS OBLIGATION AS A MANAGER IS TO ENSURE THAT PEOPLE ARE IN PLACE SO THAT OTHER OBLIGATIONS ARE ATTENDED TO AS WELL MS BROWN ADDS THAT CALPERS'S INVESTMENT PERFORMANCE IS CAUSE FOR CONCERN EVEN MR HANSON IN A RECENT INTERVIEW TAKES PAINS TO PLAY DOWN HIS SHAREHOLDER ACTIVISM A LOT OF PEOPLE THINK THIS IS MY SINGLE CRUSADE HE SNAPS IT ISN'T FOR 10 MINUTES HE TICKS OFF THE UNGLAMOROUS PARTS OF HIS JOB THAT HE TAKES SERIOUSLY INCLUDING HIRING MORE AUDITORS AND POLICING PENSION ABUSE YET MR HANSON ACKNOWLEDGES THE BOARD HAS SAID TO ME YOU'RE SPENDING A LOT OF TIME ON THE ASSET SIDE SPEND MORE TIME ON THE LIABILITY SIDE' IN ACCOUNTING PARLANCE CALPERS'S INVESTMENTS ARE ITS ASSET SIDE ITS OBLIGATIONS TO RETIREES ARE ITS LIABILITY SIDE THIS NEW PRESSURE ON MR HANSON HAS BIG IMPLICATIONS FOR THE SHAREHOLDERRIGHTS MOVEMENT THANKS TO A RARE MIX OF MEDIA SAVVY PERSISTENCE AMIABLE MIDWESTERN WAYS AND BIGMONEY CLOUT MR HANSON HAS BECOME THE MOST EFFECTIVE STOCKHOLDER ADVOCATE OF THE PAST 10 YEARS IF HE PULLS BACK OTHER INSTITUTIONAL INVESTORS SAY IT'S HARD TO SEE A LOGICAL SUCCESSOR TO HIS LEADERSHIP ROLE THE PEOPLE AT CALPERS HAVE CONSISTENTLY BEEN NOT JUST THE FIRST TO IDENTIFY ISSUES BUT ALSO THE ONES WITH THE COURAGE TO FOLLOW UP ON THEM SAYS SARAH TESLIK HEAD OF THE 79MEMBER COUNCIL OF INSTITUTIONAL INVESTORS EVEN THE HEAD OF THE BUSINESS ROUNDTABLE'S TASK FORCE ON CORPORATE GOVERNANCE H BREWSTER ATWATER JR CREDITS MR HANSON WITH MAKING SHAREHOLDER ACTIVISM MORE EFFECTIVE AND LESS SHRILL THE TWO MEN DISAGREED IN 1990 ABOUT THE WAY THAT CALPERS PROPOSED TO SURVEY LEADING CORPORATE DIRECTORS BUT MR ATWATER WHO BESIDES LEADING THE LOBBYING PANEL IS ALSO THE CHAIRMAN OF GENERAL MILLS INC SAYS PEACE HAS BEEN RESTORED HE TAKES A WRY DELIGHT IN WATCHING MR HANSON'S OWN INTERACTION WITH THE CALPERS BOARD WHICH IS DOMINATED BY STATE OFFICIALS AND UNION LEADERS DALE'S GOT A POLITICAL BOARD MR ATWATER OBSERVES THEY MEET TWO DAYS A MONTH 12 TIMES A YEAR THAT STRUCTURE CAN IMPEDE CALPERS'S DECISION MAKING MR ATWATER SAYS CREATED IN 1931 CALPERS NOW MANAGES THE PENSION SAVINGS OF MORE THAN 900000 CURRENT AND FORMER STATE EMPLOYEES THE FUND'S STOCKMARKET HOLDINGS TOTAL 25 BILLION AND ARE SO DIVERSIFIED THAT CALPERS OWNS NEARLY A 1 STAKE IN EACH OF MORE THAN 1000 MAJOR US COMPANIES BECAUSE CALPERS'S PORTFOLIO IS SO VAST MAJOR SWITCHES IN ITS STOCKHOLDINGS ARE ALMOST IMPOSSIBLE TO MAKE WITHOUT DISRUPTING THE MARKET AS A RESULT CALPERS OFFICIALS SAY THEY SEE THEMSELVES AS PERMANENT OWNERS OF COMPANIES' SHARES OVER THE YEARS THAT HAS LED CALPERS OFFICIALS TO AGITATE FOR CHANGE AT WHAT THEY BELIEVE ARE BADLY RUN BUSINESSES RATHER THAN SIMPLY TRYING TO DUMP THOSE STOCKHOLDINGS MR HANSON THE SON OF A MADISON WIS ALDERMAN JOINED CALPERS AS ITS CHIEF EXECUTIVE OFFICER IN 1987 HIS BACKGROUND WAS IN PENSION BENEFITS CHIEFLY AT THE WISCONSIN STATE EMPLOYEES' PLAN RIGHT AWAY MR HANSON DISCOVERED THAT CONTROVERSY CAME WITH HIS 95000AYEAR JOB AT A MEETING OF MAJOR US INVESTORS IN MID1987 ONE WEEK AFTER HE JOINED CALPERS MR HANSON TOOK A TONGUELASHING FROM IRA MILLSTEIN A LEADING PARTNER IN THE NEW YORK LAW FIRM OF WEIL GOTSCHAL & MANGES THE REASON CALPERS'S LEGAL STAFF WAS SPONSORING NEARLY A DOZEN SHAREHOLDER RESOLUTIONS TRYING TO GET BIG COMPANIES TO REPEAL SOME ANTITAKEOVER DEFENSES AT FIRST MR HANSON IGNORED THE ADVICE HE PRESSED ON WITH THE BRAND OF SHAREHOLDER ACTIVISM THAT CALPERS HAD ALREADY ESTABLISHED BEFORE HE ARRIVED A LEGACY FROM THE EARLY 1980S WHEN JESSE UNRUH THE LATE CALIFORNIA TREASURER CALLED THE SHOTS AT CALPERS PLENTY OF SPATS WITH CEOS ENSUED BUT LITTLE PROGRESS STARTING IN 1990 HOWEVER MR HANSON BEGAN REDIRECTING CALPERS'S EFFORTS A MAJOR IMPETUS WAS A SERIES OF PEACEMAKING MEETINGS BETWEEN BIG SHAREHOLDERS AND SEVERAL CORPORATE CEOS ASSOCIATED WITH THE BUSINESS ROUNDTABLE THE SITE CHAMPION INTERNATIONAL CORP'S EXECUTIVE LODGE IN STAMFORD CONN KNOWN AS TREETOPS AT THOSE SESSIONS THE CEOS AND THEIR LAWYER MR MILLSTEIN ONCE AGAIN URGED THE INSTITUTIONAL INVESTORS TO ZERO IN ON WEAK CORPORATE PERFORMANCE AND DIRECTORS' DUTIES TO SHAREHOLDERS THIS TIME ACCORDING TO CALPERS GENERAL COUNSEL RICHARD KOPPES MR HANSON AGREED SINCE THEN MR HANSON HAS PROVED A MASTER AT TURNING THE SPOTLIGHT ON POORLY PERFORMING COMPANIES AND AGITATING FOR CHANGE EACH WINTER CALPERS LISTS 12 TARGET COMPANIES THEN IT PRESSES FOR MEETINGS EITHER WITH THE COMPANIES' CEOS OR LATELY WITH THEIR OUTSIDE DIRECTORS AMONG CALPERS'S NEWEST TARGETS ANNOUNCED LAST WEEK ARE INTERNATIONAL BUSINESS MACHINES CORP BOISE CASCADE CORP AND PENNZOIL CORP AT IBM CALPERS IS CONCERNED ABOUT SICKLY STOCKMARKET PERFORMANCE AND THE SELECTION OF A NEW CEO TO SUCCEED JOHN AKERS WHO THIS WEEK AGREED TO STEP DOWN AT BOISE CASCADE AND PENNZOIL CALPERS WANTS OUTSIDE DIRECTORS TO TAKE A CLOSER LOOK AT HOW THE COMPANIES ARE MANAGING THEIR ASSETS OUR OBJECTIVE IS DIALOGUE DIALOGUE MR HANSON SAYS ONE OF HIS LEADING SUCCESSES WAS A THREEYEAR CAMPAIGN TO GET GM'S OUTSIDE DIRECTORS MORE INVOLVED OVER TIME MESSRS HANSON AND KOPPES WERE GRANTED A SERIES OF CONVERSATIONS WITH GM DIRECTORS AND PEOPLE CLOSE TO THE BOARD LAST FALL THE GM BOARD RESPONDED TO PRESSURE FROM CALPERS AND A LOT OF OTHER OUTSIDERS BY EASING OUT ROBERT STEMPEL AS CHAIRMAN AND REPLACING HIM WITH OUTSIDE DIRECTOR JOHN SMALE THANKS TO CALPERS'S PROMINENCE AT GM MR HANSON'S OVERALL CRUSADE HAS ATTRACTED GROWING MEDIA ATTENTION THAT MR HANSON SAYS IS EXACTLY WHAT HE WANTS CALPERS ISSUES NEWS RELEASES ON ITS EFFORTS TO TARGET UNDERPERFORMERS IT ALSO PERIODICALLY ALERTS MAJOR PUBLICATIONS TO ITS INITIATIVES AHEAD OF TIME TO BE VERY HONEST MR HANSON SAYS WE USE THE MEDIA TO WHATEVER EXTENT WE CAN TO MAKE SURE PEOPLE RECOGNIZE THAT THIS ISN'T AN ISSUE THAT WILL GO AWAY ONCE MR HANSON WINS A MEETING WITH A TARGET COMPANY'S CEO OR OUTSIDE DIRECTORS HE ASSUMES AN EARNEST FRIENDLY MIDWESTERN DEMEANOR SAY SEVERAL PARTICIPANTS IN THESE SESSIONS HE DOESN'T PRESENT HIMSELF AS AN EXPERT IN HOW A COMPANY SHOULD BE RUN INSTEAD HE REVIEWS ITS STOCK PERFORMANCE AND ASKS DIRECTORS WHAT STEPS THEY ARE WILLING TO TAKE MOST OF ALL PEOPLE SAY HE LISTENS THAT'S UNUSUAL AMONG SHAREHOLDER ACTIVISTS MANY OF WHOM ARE GADFLIES WHO BADGER CEOS THERE'S THIS DISARMING ASPECT OF DALE'S PERSONALITY THAT PUTS PEOPLE AT EASE WHEN THEY MEET HIM SAYS DAVID EISNER A JEFFERIES & CO INVESTMENT BANKER HE COMES ACROSS AS A REALLY DEDICATED PUBLIC SERVANT NOT SOMEONE ON AN EGO TRIP ONCE TALKS GET DOWN TO BUSINESS MR HANSON PUSHES HARD FOR CORPORATE BOARDS TO PLAY A MORE ACTIVE ROLE IN SOME CASES HE SAYS HE LOOKS FOR AN OUTSIDE DIRECTOR WHO CAN BE A CATALYST FOR CHANGE SUCH AS MR SMALE AT GM FROM THEN ON CALPERS CONCENTRATES ON THAT DIRECTOR A LOT OF WHAT WE DO AMOUNTS TO EMPOWERING THE BOARD MR HANSON SAYS WITH A POLITICIAN'S INSTINCTS MR HANSON TRIES TO FINISH EACH CAMPAIGN ON GOOD TERMS WITH THE WINNERS SO HE CAN THEN INVOKE THEM AS ALLIES OR AT LEAST AS CHARACTER REFERENCES IN HIS NEXT CRUSADE GENERAL MILLS' MR ATWATER AND WEIL GOTSCHAL'S MR MILLSTEIN NOW PLAY THAT ROLE LAST FALL AFTER URGING WESTINGHOUSE TO TAKE DECISIVE STEPS MR HANSON WROTE AN EFFUSIVE NOTE TO OTHER WESTINGHOUSE SHAREHOLDERS WHEN THE COMPANY DECIDED TO SELL 3 BILLION OF ITS OPERATIONS AND MEET MORE OFTEN WITH SHAREHOLDERS THAT NOTE WHICH CALPERS PROMPTLY MADE PUBLIC PATTED EVERYONE ON THE BACK SAYING WE BELIEVE THAT IT IS DIFFICULT TO IMAGINE A BETTER PROCESS AND BETTER RESULTS IN THE CORPORATE GOVERNANCE ARENA HOW MUCH THIS SHAREHOLDER ACTIVISM AFFECTS CALPERS'S INVESTMENT RETURNS IS HARD TO TELL IN SOME CASES SUCH AS WESTINGHOUSE THE COMPANY'S STOCK HAS JUMPED AFTER RESTRUCTURING PLANS HAVE BEEN ANNOUNCED BUT IN OTHER CASES SUCH AS CALPERS'S THREEYEAR GM CAMPAIGN THE FUND MIGHT HAVE DONE BETTER TO SELL GM STOCK IN 1990 AND INVEST THE MONEY IN SOMETHING ELSE RATHER THAN PRESS ON WITH A CAMPAIGN THAT HAS YET TO BOOST GM STOCK SIGNIFICANTLY ABOVE ITS 1990 LEVELS IN THE AGGREGATE CALPERS MAY HAVE ENHANCED ITS INVESTMENT RETURNS BY 110 MILLION FROM SHAREHOLDER ACTIVISM ACCORDING TO A STUDY LAST YEAR BY WILSHIRE ASSOCIATES INC A PENSION CONSULTING FIRM SOME OF THE ASSUMPTIONS IN THAT STUDY ARE CONTROVERSIAL THOUGH CALPERS OFFICIALS SAY ONLY THAT THEY'RE CONFIDENT THEIR SHAREHOLDER ACTIVISM PRODUCES YEARLY GAINS ABOVE ITS 500000AYEAR BUDGET EVEN IF THE 110 MILLION FIGURE IS ACCURATE HOWEVER IT AMOUNTS TO LITTLE MORE THAN A 01 ANNUAL IMPROVEMENT IN CALPERS'S OVERALL INVESTMENT RETURNS AND LATELY CALPERS'S VAST PORTFOLIO HAS UNDERPERFORMED ITS PEERS BY MUCH LARGER AMOUNTS FOR THE 12 MONTHS ENDED LAST SEPT 30 CALPERS'S TOTAL INVESTMENTS GAINED 95 IN VALUE THAT'S NOTICEABLY BELOW THE MEDIAN 1067 FOR BIG PUBLIC PENSION FUNDS ACCORDING TO WILSHIRE CALPERS ALSO IS A LAGGARD FOR THE MOST RECENT THREEYEAR PERIOD ONLY ITS FIVEYEAR PERFORMANCE REMAINS SLIGHTLY ABOVE AVERAGE REFLECTING THE FUND'S PREVIOUS STATUS AS ONE OF THE TOP PERFORMING PUBLIC PENSION FUNDS OF THE 1980S PENSION CONSULTANTS SAY CALPERS'S MAIN PROBLEM IS THE WAY IT HAS DIVIDED UP ITS ASSETS IT HAS 7 OF ITS MONEY IN REAL ESTATE AND 10 IN FOREIGN STOCKS FAR ABOVE THE NORMS FOR PUBLIC PENSION FUNDS BOTH THOSE CATEGORIES HAVE DONE POORLY OF LATE IT HAS JUST 34 OF ITS MONEY IN US STOCKS MEANING THAT IT HAS MISSED OUT TO SOME EXTENT ON THE CONTINUING US BULL MARKET THE 5 BILLION REALESTATE PORTFOLIO IS CALPERS'S NO 1 HEADACHE NATIONWIDE PROPERTY PRICES HAVE BEEN DROPPING 5 TO 10 A YEAR RECENTLY AND RENTAL INCOME HASN'T BEEN ENOUGH TO MAKE UP THE DIFFERENCE ON A COMPARATIVE BASIS OUR PORTFOLIO HASN'T DONE TOO BADLY SAYS DEWITT BOWMAN CALPERS'S INVESTMENT CHIEF ON AN ABSOLUTE BASIS IT'S BEEN A DISASTER MR BOWMAN SAYS HE HOPES CALPERS CAN BE A LONGTERM INVESTOR AND SIMPLY WAIT OUT THE REALESTATE SLUMP THAT'S AN OPTION THAT SOME BOARD MEMBERS SEEM TO FAVOR TOO BUT OTHER DIRECTORS PRIVATELY SIGNAL A DESIRE TO CUT SOME LOSSES NOW AND TRY TO RECOUP THE MONEY BY MAKING DIFFERENT INVESTMENTS MEANWHILE CALPERS'S INTRICATE BENEFIT SYSTEM IS COMING UNDER SCRUTINY BECAUSE CALPERS PAYS OUT PENSIONS FOR SUCH A DIVERSE GROUP OF CALIFORNIANS RANGING FROM UNIVERSITY PROFESSORS TO MOSQUITOABATEMENT WORKERS IT HAS MORE THAN 50 SEPARATE BENEFIT SCHEMES OPERATING AT ONCE THAT SYSTEM HAS BECOME SO CONFUSING TO PARTICIPANTS THAT CALPERS IS BEING URGED TO STANDARDIZE ITS BENEFITS AND MAKE IT EASIER FOR PARTICIPANTS TO TELL HOW MUCH THEY ARE ENTITLED TO WHILE CALPERS WRESTLES WITH SUCH MATTERS MR HANSON IS TORN BETWEEN FOCUSING ON THE ISSUES IN FRONT OF HIM IN SACRAMENTO OR REVVING UP HIS SHAREHOLDER ACTIVISM CAMPAIGN WHEN ASKED DIRECTLY HE SAYS CALPERS'S BUSINESS COMES FIRST BUT HIS EYES LIGHT UP WHEN HE TALKS ABOUT SOME OF THE DRAMA INVOLVED IN BEING A CORPORATE CRUSADER INCLUDING A PERSONAL VISIT IN 1991 FROM WARREN BUFFETT THEN SALOMON INC'S INFLUENTIAL CHAIRMAN TO TALK ABOUT WHAT WAS WRONG WITH SALOMON AT THE TIME BUT BY RAISING THE FLAG OF SHAREHOLDER ACTIVISM SO HIGH MR HANSON HAS BECOME A CELEBRITY IN HIS OWN RIGHT WE CALL DALE MADONNA' SAYS CALPERS'S GENERAL COUNSEL MR KOPPES HE CREATES A STIR WHEREVER HE GOES JAKE PETROSINO GRAPHICS SUPERVISOR ANAHEIM CALIF TWO POSITIONS ARE VACANT 9301290016 930105 REVIEW & OUTLOOK EDITORIAL LANGUAGE CENSORS THE LANGUAGE CENSORS HAVE BEEN SIGHTED AGAIN AT ONE OF THEIR FAVORITE CAMPUSES THE MAMMOTH UNIVERSITY OF MICHIGAN A STUDENT GOT IN TROUBLE THERE THIS FALL FOR WRITING A TERM PAPER MORE ACCURATELY HE GOT IN TROUBLE FOR THE PAPER'S VOCABULARY THE UNDERGRADUATE HAS BEEN ACCUSED OF HARASSMENT BY A FEMALE TEACHING ASSISTANT ON THE BASIS OF A HYPOTHETICAL EXAMPLE HE PUT IN A TERM PAPER THE CRIME IT SEEMS THE HAPLESS STUDENT WAS UNWISE ENOUGH TO IGNORE THE POLITICAL SCIENCE DEPARTMENT'S CHECKLIST FOR NONSEXIST WRITING HERE'S THE OFFENDING PASSAGE WRITTEN BY SOPHOMORE SHAWN BROWN FOR POLITICAL SCIENCE 111 INTRODUCTION TO AMERICAN POLITICS ANOTHER PROBLEM WITH SAMPLING POLLS IS THAT SOME PEOPLE DESIRE THEIR PRIVACY AND DON'T WANT TO BE BOTHERED BY A POLLSTER LET'S SAY DAVE STUD IS ENTERTAINING THREE BEAUTIFUL LADIES IN HIS PENTHOUSE WHEN THE PHONE RINGS A POLLSTER ON THE OTHER END WANTS TO KNOW IF WE SHOULD ELIMINATE THE CAPITAL GAINS TAX NOW DAVE IS A KNOWLEDGEABLE BUSINESSPERSON WHO CARES A LOT ABOUT THIS ISSUE BUT SINCE DAVE IS TIED UP AT THE MOMENT HE TELLS THE POLLSTER TO BOTHER SOMEONE ELSE NOW THIS IS PERHAPS A LUDICROUS EXAMPLE BUT THERE IS SIMPLY A SEGMENT OF THE POPULATION WHO WISH TO BE LEFT ALONE THEY HAVE MORE IMPORTANT THINGS TO BE CONCERNED ABOUT JOBS FAMILY SCHOOL ETC IF THIS SEGMENT OF THE POPULATION IS NEVER ACTUALLY POLLED THEN THE RESULTS OF THE POLL COULD BE SKEWED NOW IT SEEMS TO US A SENSIBLE REFEREE WOULD SEE THAT WHAT WE HAVE HERE IS A WASH DAVE STUD MAY STRIKE SOME AS A 15YARD PENALTY BUT NOTE THAT THE STUDENT DID USE THE SEXLESS BUSINESSPERSON AS WELL IN ANY EVENT MR BROWN'S POINT ABOUT THE RELIABILITY OF POLLS TODAY IS AN INTERESTING ONE BUT NONE OF THESE CONSIDERATIONS CAUGHT THE ATTENTION OF HIS TEACHER DEBBIE MEIZLISH INSTEAD MS MEIZLISH WAS HORRIFIED AT WHAT SHE PERCEIVED AS MR BROWN'S VERBAL ASSAULT ON HER SHE WROTE YOU ARE RIGHT THIS IS LUDICROUS & INAPPROPRIATE & OFFENSIVE THIS IS COMPLETELY INAPPROPRIATE FOR A SERIOUS POLITICAL SCIENCE PAPER IT COMPLETELY VIOLATES THE STANDARD OF NONSEXIST WRITING PROFESSOR ROSENSTONE HAS ENCOURAGED ME TO INTERPRET THIS COMMENT AS AN EXAMPLE OF SEXUAL HARASSMENT AND TO TAKE THE APPROPRIATE FORMAL STEPS I HAVE CHOSEN NOT TO DO SO IN THIS INSTANCE HOWEVER ANY FUTURE COMMENTS IN A PAPER IN A CLASS OR IN ANY DEALINGS W/ME WILL BE INTERPRETED AS SEXUAL HARASSMENT AND FORMAL STEPS WILL BE TAKEN PROFESSOR ROSENSTONE IS AWARE OF THESE COMMENTS & IS PREPARED TO INTERVENE YOU ARE FOREWARNED THUS THREATENED MR BROWN MADE A SENSIBLE DECISION HE DROPPED THE COURSE PRESUMABLY IN THE HOPE OF FINDING A POLITICAL SCIENTIST AT MICHIGAN WHO WAS INTERESTED IN TEACHING HIM POLITICAL SCIENCE INSTEAD OF POLITICAL CORRECTNESS IN A LETTER TO THE MICHIGAN REVIEW THE STUDENTRUN NEWSPAPER THAT REPORTED THE INCIDENT THE DEPARTMENT'S ARLENE SAXONHOUSE WROTE THE POLITICAL SCIENCE PROFESSION CURRENTLY ENCOURAGES SCHOLARS IN THE FIELD TO USE GENDER NEUTRAL LANGUAGE WE GUESS THIS MUST MEAN THAT THE PROFESSION'S ACADEMIC JOURNALS ARE ENGAGED IN SIMILAR PEERSCOURINGS OF TEXTS AND MANUSCRIPTS FOR OFFENSIVE WORDS IT IS VERY HARD TO SEE HOW THIS ENTERPRISE CAN LEAD TO MUCH GOOD END IF WE KNOW ANYTHING FROM HISTORY IT IS THAT SUCH EXERCISES IN THE POLICING OF LANGUAGE AND THOUGHT DRIVE PEOPLE INTO LIFETIME OPPOSITION THE GENDERFASTIDIOUS PROFS AND TEACHING ASSISTANTS AT MICHIGAN MAY STILL BE CONVEYING SOMETHING USEFUL ABOUT AMERICA'S POLITICAL SYSTEM BUT THEY ARE ALSO LIKELY TURNING OUT MANY ARDENT ENEMIES OF THEIR RELENTLESS AND WATCHFUL CAUSE SEE RELATED LETTER LETTERS TO THE EDITOR WE DO NOT POLICE LANGUAGE AND THOUGHT WSJ JAN 29 1993 9301050037 9301290015 930129 FORD PLANS TO LAUNCH A CREDIT CARD WITH CITICORP A RESPONSE TO GM SUCCESS BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL FORD MOTOR CO IS EXPECTED TO UNVEIL ITS CREDIT CARD NEXT MONTH AN ANSWER TO GENERAL MOTORS CORP'S HIGHLY SUCCESSFUL CREDIT CARD PROGRAM THE FORD CARD WILL BE A JOINT EFFORT WITH CITICORP THE NATION'S LARGEST CREDIT CARD ISSUER AND WILL FEATURE REBATE CREDIT ON THE PURCHASE OF NEW FORD CARS AND TRUCKS ACCORDING TO A PERSON FAMILIAR WITH THE PLAN SPOKESMEN FOR FORD AND CITICORP DECLINED TO COMMENT THE EXPECTED MOVE WOULD FOLLOW GM'S OWN MASTERCARD PROGRAM LAUNCHED LAST FALL GM OFFERED LIMITED REBATES ON CAR PURCHASES AND SIGNED UP A MILLION CONSUMERS WITHIN A MONTH MAKING IT ONE OF THE FASTEST GROWING CREDIT CARD PROGRAMS EVER THE FORDCITICORP PROGRAM WILL OFFER A VISA CREDIT CARD NATIONALLY TO THE MASS MARKET AND TO CITICORP'S 281 MILLION EXISTING CREDIT CARD HOLDERS THE PERSON FAMILIAR WITH THE PLAN SAID IT WILL HAVE A 20 ANNUAL FEE WITH A COMPETITIVE BASE INTEREST RATE OF 154 AND OFFER REBATES ON FORD CARS AND TRUCKS EQUAL TO 5 OF PURCHASES MADE ON THE CARD HE ADDED TO SET ITSELF APART FROM GM HOWEVER FORD'S CAP ON THE AMOUNT OF REBATE CREDIT THAT CAN BE AMASSED WILL BE HIGHER THAN GM'S THE PERSON SAID THOUGH HE WOULDN'T SAY WHAT FORD'S CAP WOULD BE A GM REBATE IS LIMITED TO 500 A YEAR AND 3500 OVER SEVEN YEARS THE GM CARD HOWEVER CHARGES NO ANNUAL FEE THIS LATEST ENTRY REPRESENTS ANOTHER THORN IN THE SIDES OF TRADITIONAL BANK CREDIT CARD ISSUERS MANY OF WHICH HAVE HAD THEIR MARKET SHARE ERODED BY SUCH NONBANK ISSUERS AS GM AND AMERICAN TELEPHONE & TELEGRAPH CO IRONICALLY CITICORP WAS ONE OF THE MORE BATTERED BANKS IN THIS TREND NONBANK ISSUERS' ALSO VIEW THEIR CREDIT CARDS AS A WAY TO BOLSTER SALES OF PRODUCTS AND SERVICES NOT AS A DIRECT SOURCE OF PROFIT BANKS ON THE OTHER HAND TURN TO CREDIT CARDS SOLELY FOR PROFITS INDEED A GM SPOKESMAN SAID THAT MORE THAN 1000 GM CREDIT CARD HOLDERS HAVE USED REBATE CREDIT TO BUY OR LEASE A GM CAR OR LIGHT TRUCK SINCE GM LAUNCHED THE CARD LAST SEPTEMBER MORE THAN 28 MILLION PEOPLE HAVE OPENED A GM CREDIT CARD ACCOUNT THE COMPANY SAID WE BELIEVE THAT THE CREDIT CARD HELPED US SELL A THOUSAND MORE VEHICLES THE GM SPOKESMAN SAID NEVERTHELESS GM'S TOTAL VEHICLE SALES FOR THE FIRST 20 DAYS OF THE YEAR ARE OFF 2 FROM A YEAR EARLIER WITH THE SUCCESS OF THE GM CARD PROGRAM IT WAS ONLY A MATTER OF TIME BEFORE OTHER AUTO MAKERS FOLLOWED SUIT INDUSTRY ANALYSTS SAY INDEED EARLIER THIS MONTH CHRYSLER CORP SAID IT WAS CONSIDERING LAUNCHING A CREDIT CARD AS WELL BUT WOULDN'T MAKE THE FINAL DECISION UNTIL MARCH THE NEW FORD CREDIT CARD COULD BE AS GOOD AS GM'S PROGRAM SAID SPENCER NILSON PUBLISHER OF THE NILSON REPORT A SANTA MONICA CALIF NEWSLETTER FOR THE INDUSTRY THE NEWSLETTER WILL REPORT TODAY THAT FORD AND CITICORP WILL MAKE AN ANNOUNCEMENT ABOUT THE LAUNCH OF THEIR CARD ON FEB 8 FOR CITICORP THE PARTNERSHIP WITH FORD IS A WAY TO FIGHT BACK AGAINST GM AND OTHER NEW ENTRANTS AND REGAIN LOST MARKET SHARE MR NILSON THE NEWSLETTER PUBLISHER SAID CITICORP LOST MORE THAN A MILLION ACCOUNTS IN THE PAST YEAR AND HAD TO DO SOMETHING TO STOP THE ATTRITION THIS PROGRAM SHOULD BE GOOD FOR BOTH CITICORP AND FORD MR NILSON ADDED BUT NOT TO BE OUTDONE BY THE NEW CREDIT CARD RIVAL GM HAS SCHEDULED AN ANNOUNCEMENT NEXT WEEK WHEN IT IS EXPECTED TO UNVEIL SEVERAL NEW ENHANCEMENTS TO ITS CARD ONE OF THEM IS LIKELY TO BE A GOLD MASTERCARD THAT WILL HAVE A HIGHER CREDIT LINE A GM SPOKESMAN SAID THE ANNOUNCEMENT WAS SCHEDULED MORE THAN SIX WEEKS AGO AND ISN'T IN RESPONSE TO FORD'S NEW CARD 9301290014 930129 FEDERAL PROSECUTORS IN RARE STEP FILE CHARGES IN SECURITIES ARBITRATION CASE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL PROSECUTORS HAVE UPPED THE ANTE IN THE SECURITIES ARBITRATION WORLD IN AN UNUSUAL INDICTMENT PROSECUTORS ACCUSED A FORMER SHEARSON LEHMAN HUTTON INC COMPLIANCE OFFICER OF LYING AND OFFERING FORGED EVIDENCE AT A NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATION HEARING SHEARSON LEHMAN HUTTON NOW SHEARSON LEHMAN BROTHERS IS A UNIT OF AMERICAN EXPRESS CO EDWARD COYLE WHO WAS A CONTROL ADMINISTRATOR IN A MIDTOWN MANHATTAN BRANCH OFFICE OF SHEARSON WAS TRYING TO PROTECT A BROKER IN THAT OFFICE WHO WAS ACCUSED OF CHURNING A CLIENT'S ACCOUNT ACCORDING TO THE THREECOUNT INDICTMENT PREPARED BY THE US ATTORNEY'S OFFICE IN NEW YORK JOHN SIFFERT MR COYLE'S ATTORNEY SAID HIS CLIENT DENIES ANY WRONGDOING SCOTT A EDELMAN THE ASSISTANT US ATTORNEY HANDLING THE CASE DECLINED TO COMMENT THE INDICTMENT IS AN EXTREMELY RARE CASE OF GOVERNMENT INTERVENTION IN A SECURITIES ARBITRATION HEARING ARBITRATION SPECIALISTS SAID A THICKET OF LEGAL HOLDINGS MAKES IT DIFFICULT FOR FEDERAL COURTS TO EXERCISE JURISDICTION OVER SECURITIES ARBITRATION FOR EXAMPLE EVEN THOUGH WITNESSES AT SUCH HEARINGS SWEAR TO TELL THE TRUTH IT IS UNCLEAR IF THEY CAN BE CHARGED WITH PERJURY INDEED THE THREE COUNTS IN THE INDICTMENT TWO OF MAIL FRAUD AND ONE OF KEEPING FALSE BOOKS AND RECORDS INVOLVE EVENTS THAT OCCURRED OUTSIDE THE HEARING ROOM BUT ARBITRATION LAWYERS SAID THEY HOPED THE INDICTMENT WOULD SEND A SIGNAL THAT ARBITRATION HEARINGS WHICH ARE REQUIRED OF ALMOST ALL CLIENTS WITH COMPLAINTS AGAINST BROKERS NEED TO BE TAKEN SERIOUSLY ALMOST 5000 CUSTOMER ARBITRATIONS WERE FILED LAST YEAR WITH BODIES LIKE THE NASD AND THE NEW YORK STOCK EXCHANGE IN THE PAST ARBITRATORS HAVE PUNISHED FIRMS THAT GAVE FALSE EVIDENCE AT HEARINGS BY SUBSTANTIALLY INCREASING AWARDS TO THE CLIENT BUT A CRIMINAL INDICTMENT IS A FAR MORE GRAVE STEP IT SENDS THE MESSAGE THAT ARBITRATION PROCEEDINGS ARE JUST AS SERIOUS AS JUDICIAL PROCEEDINGS SAID RICHARD RYDER A FORMER DIRECTOR OF ARBITRATION AT THE NASD WHO IS EDITOR OF THE SECURITIES ARBITRATION COMMENTATOR A NEWSLETTER BASED IN MAPLEWOOD NJ THAT KEEPS TRACK OF ARBITRATIONS NATIONALLY JEFFREY L LIDDLE AN ATTORNEY AT THE FIRM OF LIDDLE O'CONNOR FINKELSTEIN & ROBINSON WHO OFTEN REPRESENTS PLAINTIFFS IN ARBITRATION CASES SAID HE WAS PLEASED TO SEE THE FEDERAL PROSECUTORS TAKE AN INTEREST IN ARBITRATION CASES ONE OF THE FEELINGS YOU HAVE IN ARBITRATION BECAUSE OF THE LACK OF APPELLATE REVIEW AND THE LACK OF PRETRIAL DISCOVERY IS AN INABILITY TO BE CERTAIN OF THE CREDIBILITY OF FIRM WITNESSES HE SAID THE INDICTMENT AGAINST MR COYLE CENTERS ON AN ARBITRATION PROCEEDING INITIATED IN 1989 BY CAROL DAVIS A CLIENT OF SHEARSON BROKER CHARLES LEWIS MS DAVIS ALLEGING THAT HER ACCOUNT HAD BEEN MISHANDLED SOUGHT 218046 FROM SHEARSON WHICH INCLUDED THE MORE THAN 70000 SHE HAD PAID IN COMMISSIONS SHE ALSO WANTED SHEARSON TO PAY 25 MILLION IN PUNITIVE DAMAGES IN THE END THE NASD ARBITRATION PANEL THAT CONSIDERED THE CASE AWARDED MS DAVIS ONLY 70200 AMONG THE KEY PIECES OF EVIDENCE PRESENTED BY SHEARSON AT THE HEARING WAS A LETTER ALLEGEDLY SIGNED BY MS DAVIS THAT APPEARED TO APPROVE OF THE ACTIVITY IN HER ACCOUNT PROSECUTORS SAID IN FACT PROSECUTORS ALLEGE THE LETTER WAS A FORGERY AND MR COYLE WHO GAVE THE LETTER TO SHEARSON'S LAWYERS KNEW IT WAS A SPOKESWOMAN FOR SHEARSON SAID THE FIRM HAS COOPERATED WITH THE CRIMINAL INVESTIGATION AND ISN'T A TARGET SHEARSON SAID MR COYLE RESIGNED FROM SHEARSON IN DECEMBER AND MR LEWIS WHO HASN'T BEEN CHARGED RETIRED THAT SAME MONTH 9301290013 930129 FOREIGN EXCHANGE DATA ON ECONOMIC GROWTH HELP DOLLAR BUT THE CURRENCY ENDS NARROWLY MIXED GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEWS THAT THE US ECONOMY GREW FASTER THAN EXPECTED AT THE END OF 1992 HELPED THE DOLLAR OVERCOME EARLY WEAKNESS BUT THE CURRENCY MANAGED TO END ONLY NARROWLY MIXED FROM WEDNESDAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15861 MARKS LITTLE CHANGED FROM 15865 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12420 YEN UP SLIGHTLY FROM 12410 YEN STERLING WAS TRADING AT 15160 UP FROM 15110 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 15833 MARKS AND AT 12445 YEN THERE'S REALLY NOTHING TO CARRY IT THROUGH THE 159 MARK LEVEL YET SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON THE REPORT THAT US GROSS DOMESTIC PRODUCT OR GDP GREW 38 IN THE FOURTH QUARTER BEYOND EXPECTATIONS OF A 31 EXPANSION HELPED THE DOLLAR SHAKE OFF AN EARLY MALAISE DEALERS SAID THE GDP WAS A GOOD NUMBER SAID CHRISTINE ALLGEIER A CORPORATE FOREIGNEXCHANGE TRADER AT BANQUE PARIBAS IN NEW YORK DEALERS SAID SOME INVESTORS HAD SOLD DOLLARS SHORT AHEAD OF THE REPORT BETTING ON DECLINES GAVE UP AND GRADUALLY BOUGHT DOLLARS LATER IN THE DAY TO COVER THE SHORT POSITIONS BUT QUESTIONS ABOUT HOW LONG THE FOURTH QUARTER'S RAPID GROWTH CAN BE MAINTAINED ALONG WITH THE LATEST ROUND OF TIGHTMONEY COMMENTS FROM GERMANY'S BUNDESBANK KEPT THE DOLLAR'S GAINS LIMITED DEALERS SAID LATE YESTERDAY ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE ECHOED MARKET CONCERNS ABOUT THE US ECONOMY SAYING HE BELIEVED THE FOURTH QUARTER'S ROBUST GROWTH RATE WILL BE DIFFICULT TO SUSTAIN IN THE FIRST HALF OF THIS YEAR RICHARD KOSS A VICE PRESIDENT AT CANADIAN IMPERIAL BANK OF COMMERCE IN NEW YORK SAID THERE'S STILL SOME SUSPICION IN THE MARKETPLACE THAT A LOT OF GROWTH IS BEING FUNDED OUT OF SAVINGS IN A WAY THAT CANNOT BE SUSTAINED IT WOULD TAKE SOME SIGN OF BETTER JOB GROWTH TO BUST US THROUGH THE TOP OF THE RANGE HE ADDED BUT THURSDAY'S REPORT ON JOBLESS CLAIMS SEEMED TO POINT IN THE OPPOSITE DIRECTION DEALERS SAID THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE CLIMBED 2000 IN THE WEEK ENDED JAN 16 CONTRADICTING EXPECTATIONS OF A 9000CLAIM DECLINE DOLLAR BULLS ALSO WERE DISHEARTENED BY BUNDESBANK PRESIDENT HELMUT SCHLESINGER'S TOUGH TALK ON INTEREST RATES THURSDAY DEALERS SAID IN A NEWS BRIEFING IN BRUSSELS THE CENTRAL BANKER SAID INFLATION IN GERMANY REMAINS UNSATISFACTORILY HIGH WHILE MONEY SUPPLY GROWTH IS MUCH TOO STRONG WESTERN GERMAN INFLATION NOW IS RUNNING JUST ABOVE 4 ANNUALLY AND THE LATEST REPORT ON MONEY SUPPLY SHOWS THE KEY M3 AGGREGATE ROSE AT AN ANNUAL RATE OF 88 IN DECEMBER FAR ABOVE THE BUNDESBANK'S 3555 TARGET RANGE MS ALLGEIER OF BANQUE PARIBAS SAID MR SCHLESINGER'S COMMENTS UNDERLINE THE VIEW THAT THEY DON'T SEEM TO PLAN TO EASE IN THE SHORT TERM I THINK THAT'LL PUT A TOP ON THE DOLLAR SHE ADDED THREEMONTH INTEREST RATES ON MARK ASSETS RUN ABOUT FIVE PERCENTAGE POINTS ABOVE THOSE AVAILABLE ON DOLLAR DEPOSITS MAKING HOLDING DOLLARS COSTLY BUT MS ALLGEIER SAIDTHE MARKET'S FAIRLY CERTAIN THEY'LL EASE IT'S JUST A MATTER OF TIME SO I THINK THE MARKET'S RELUCTANT TO BE SHORT THE DOLLAR 9301290012 930129 LAW LEGAL BEAT PRODUCTLIABILITY GROUPS TAKE UP ARMS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL BUOYED BY THE DEFEAT OF GEORGE BUSH AND DAN QUAYLE PLAINTIFF AND CONSUMER GROUPS ARE GEARING UP TO PRESS FOR THEIR OWN VERSION OF LEGAL REFORM CHANGES THAT AID RATHER THAN DETER THE PURSUIT OF PERSONALINJURY LAWSUITS THESE GROUPS WILL LOBBY IN CONGRESS THIS YEAR FOR LEGISLATION LIMITING THE ABILITY OF COMPANIES TO KEEP INTERNAL SAFETY RECORDS SECRET IN FEDERAL SUITS OVER ALLEGEDLY DEFECTIVE PRODUCTS THE ISSUE IS VITAL TO CURRENT LITIGATION INVOLVING SUCH PRODUCTS AS BREAST IMPLANTS CIGARETTES AND AUTOMOBILES FURTHER SEVERAL FEDERAL LAWS AFFECTING ENVIRONMENTAL CLEANUPS AND WORKER SAFETY WILL BE UP FOR RENEWAL DURING THE NEXT TWO YEARS PRESENTING PUBLICINTEREST GROUPS WITH NEW OPPORTUNITIES THEY SAY TO SEEK TO BROADEN THE CIVIL LIABILITY OF BUSINESSES AND MANUFACTURERS IN ADDITION RALPH NADER'S GROUP PUBLIC CITIZEN PLANS TO PUSH FOR A FEDERAL PLAN THAT WOULD ALLOW RECOVERY THROUGH MEDIATION IN PERSONALINJURY CLAIMS TOO SMALL TO ATTRACT LAWYERS SUCH A PROGRAM WOULD PROBABLY ADD TO THE LIABILITY OF PRODUCT MANUFACTURERS THOUGH IT IS GIVEN SLIM CHANCE OF PASSAGE THE INITIATIVES PLANNED BY THE PROPLAINTIFF GROUPS REFLECT A NEW AGGRESSIVENESS ON THEIR PART AFTER SEVERAL YEARS ON THE DEFENSIVE FORMER VICE PRESIDENT QUAYLE MADE REDUCING RUNAWAY JURY AWARDS AND EXORBITANT LEGAL FEES A KEY PART OF HIS PLAN TO IMPROVE US COMPETITIVENESS INTERNATIONALLY AND LAST CONGRESSIONAL SESSION WITH STRONG ADMINISTRATION AND INDUSTRY SUPPORT SENATE LEGISLATION AIMED AT LIMITING PRODUCT LIABILITY GAINED 58 OF THE 60 VOTES NEEDED TO GET A FLOOR VOTE THE REFORM BILL'S BEST SHOWING EVER SUPPORTERS OF SUCH CHANGES MAINTAIN THAT THEIR CRUSADE IS FAR FROM DEAD MANY OF THEIR ALLIES REMAIN IN CONGRESS ON BOTH SIDES OF THE AISLE AND THE INSURANCE AND MANUFACTURING INDUSTRIES ARE STILL EAGER TO SEE THE LEGISLATION ENACTED THE ADVOCATES ALSO NOTE THAT EFFORTS TO LIMIT THE COSTS OF MEDICAL MALPRACTICE ARE SURE TO BE PART OF ANY DISCUSSION OF NATIONAL HEALTH CARE IN THE CLINTON ADMINISTRATION BUT THE ARRIVAL OF A NEW ADMINISTRATION WHICH HAD STRONG SUPPORT FROM THE PLAINTIFFS' BAR PROBABLY MEANS THAT MOST OF THE BUSHERA PROPOSALS SUCH AS THOSE RESTRICTING PUNITIVE DAMAGES AND AWARDS FOR PAIN AND SUFFERING WON'T BE HIGH PRIORITIES AGAIN ANYTIME SOON THE TONE OF THE DEBATE HAS CHANGED SIGNIFICANTLY SINCE THE ELECTION AND PLAINTIFFS' LAWYERS ALWAYS AMONG THE MOST POWERFUL LOBBIES IN THE NATION ARE ON THE OFFENSIVE THE PROPOSAL TO MAKE IT TOUGHER FOR PRODUCTLIABILITY DEFENDANTS TO KEEP INTERNAL COMPANY DOCUMENTS UNDER SEAL HAS WON THE BACKING OF SEN HERBERT KOHL D WIS A JUDICIARY COMMITTEE MEMBER WHO PLANS TO INTRODUCE THE BILL LATER THIS YEAR THE CHANGE WOULD REQUIRE PUBLIC DISCLOSURE OF ALL PRETRIAL INFORMATION IN FEDERAL PRODUCTLIABILITY SUITS DEEMED BY JUDGES TO BE RELEVANT TO PUBLIC HEALTH AND SAFETY TEXAS ALREADY HAS A SIMILAR LAW WHICH HAS FORCED AUTO COMPANIES DRUG FIRMS AND OTHERS TO MAKE PUBLIC SENSITIVE DOCUMENTS THEY HAD SOUGHT TO SEAL BUSINESS LOBBYISTS ALSO FEAR THAT A SLEW OF CONSUMER INITIATIVES IN CONGRESS MAY SEEK TO BROADEN LIABILITY AGAINST MANUFACTURERS AND COMPANIES THE ENVIRONMENTAL PROTECTION AGENCY'S SUPERFUND CLEANUP LAW FOR EXAMPLE IS DUE TO BE REAUTHORIZED THIS YEAR WASHINGTON LAWYER AND BUSINESS LOBBYIST VICTOR SCHWARTZ PREDICTS THAT PLAINTIFFS' ADVOCATES WILL PUSH TO EXPAND THE LAW TO ALLOW INJURED VICTIMS TO SUE POLLUTERS FOR PERSONAL INJURIES ALLEGED TO HAVE RESULTED FROM TOXIC DUMPING CURRENTLY THE LAW ALLOWS RECOVERY FOR CLEANUP AND RELATED COSTS BUT NOT FOR INJURIES SIMILARLY ENABLING LEGISLATION FOR THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION IS DUE TO BE RENEWED AN ISSUE LIKELY TO BE DEBATED IS WHETHER INJURED WORKERS SHOULD BE ABLE TO SUE EMPLOYERS FOR DAMAGES CURRENT LAW ALLOWS ONLY THE GOVERNMENT TO COLLECT CIVIL PENALTIES THESE ISSUES HAVE BEEN ON THE AGENDA FOR YEARS SAYS PAMELA GILBERT LEGISLATIVE DIRECTOR AT PUBLIC CITIZEN BUT DURING REAGANBUSH NEW MEASURES WERE VIRTUALLY IMPOSSIBLE TO PASS WE WERE FIGHTING TO KEEP WHAT WE HAD BUSINESS LOBBYISTS CAUTION THAT EFFORTS IN THESE AREAS AREN'T NEW AND THAT THERE REMAINS SIZABLE SUPPORT IN CONGRESS FOR PROINDUSTRY REFORMS WE'RE STILL GOING FULL GUNS SAYS WILLIAM FAY A LOBBYIST FOR THE PRODUCT LIABILITY COORDINATING COMMITTEE A COALITION OF INSURANCE MANUFACTURING AND PHARMACEUTICAL COMPANIES PUSHING FOR LEGISLATION TO INCREASE THEIR PROTECTION AGAINST PRODUCTDEFECT SUITS SUPPORTERS OF PROBUSINESS CHANGES IN LIABILITY LAWS ALSO SAY THEY WERE ENCOURAGED THAT PRESIDENT CLINTON'S TRANSITION TEAM APPEARED UNEXPECTEDLY RECEPTIVE TO BUSINESS CONCERNS ABOUT LAWSUIT ABUSE AND ITS EFFECT ON INTERNATIONAL COMPETITION AND INNOVATION I BELIEVE THE TRIAL LAWYERS VIEW THE THING AS LOCKED THAT THE ADMINISTRATION WILL BE AGAINST REFORM SAYS MR SCHWARTZ BUT I BELIEVE WE'LL GET OUR DAY IN COURT THE PROPOSED REFORM LAW THAT NARROWLY LOST ON A PROCEDURAL VOTE LAST SEPTEMBER CAPPED A DECADELONG EFFORT THOUGH THE BILL'S REPUBLICAN COSPONSOR ROBERT KASTEN OF WISCONSIN LOST HIS REELECTION BID IN NOVEMBER THE BILL HAS BEEN TAKEN OVER BY TWO DEMOCRATIC SENATORS WITH CLOSE TIES TO PRESIDENT CLINTON JOHN D ROCKEFELLER OF WEST VIRGINIA AND JOSEPH I LIEBERMAN OF CONNECTICUT SEN ROCKEFELLER WAS ONE OF FIVE NATIONAL CHAIRMEN FOR THE CLINTON CAMPAIGN AND SEN LIEBERMAN HAS BEEN CLOSE TO THE PRESIDENT SINCE THEIR DAYS TOGETHER AT YALE LAW SCHOOL SEN ROCKEFELLER WHOSE TIME FOR THESE ISSUES WILL BE LIMITED BY HIS HEAVY COMMITMENT TO HEALTHCARE REFORM PLANS TO REINTRODUCE THE PROBUSINESS PRODUCTLIABILITY BILL THIS YEAR BY NO MEANS IS HE ABANDONING THE EFFORT SAYS A STAFF MEMBER MOREOVER MR FAY AND OTHERS ARGUE THAT PROSPECTS FOR ITS SUCCESS MAY ACTUALLY IMPROVE NOW THAT MESSRS BUSH AND QUAYLE ARE NO LONGER PUSHING IT AS A PARTISAN POLITICAL ISSUE WE WERE HELPED AND HURT BY BUSHQUAYLE SAYS WAYNE VALIS EXECUTIVE DIRECTOR OF CITIZENS FOR CIVIL JUSTICE REFORM A LEGALREFORM GROUP IN WASHINGTON IT HELPED US BECAUSE IT GOT THE ISSUE MORE VISIBILITY IT HURT US BECAUSE IT CHASED AWAY ALL OUR DEMOCRATIC ALLIES THE CURRENT SYSTEM OF ELECTING STATE JUDGES IN EIGHT TEXAS COUNTIES VIOLATES THE 1965 VOTING RIGHTS ACT BY DILUTING THE VOTING STRENGTH OF BLACKS AND HISPANICS A FEDERAL APPEALS COURT RULED THE 2TO1 DECISION BY A PANEL OF THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS IS THE FIRST BY AN APPELLATE COURT ON THE MERITS OF CHALLENGES TO ATLARGE JUDICIAL ELECTIONS IN SUCH ATLARGE ELECTIONS ALL VOTERS IN A COUNTY VOTE FOR ALL THE JUDICIAL POSTS IN THE COUNTY AN ALTERNATIVE WOULD BE TO DIVIDE THE COUNTY INTO SMALLER DISTRICTS WITH PEOPLE VOTING EXCLUSIVELY FOR THE JUDGE IN THEIR DISTRICT THE DECISION MAY AFFECT SIMILAR SUITS IN CALIFORNIA NEW YORK OKLAHOMA GEORGIA FLORIDA AND MISSISSIPPI SAID SHERRILYN IFILL AN ATTORNEY FOR THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND INC A SPOKESMAN FOR DAN MORALES TEXAS'S ATTORNEY GENERAL SAID THE STATE WILL CONTINUE NEGOTIATIONS TO SETTLE THE CASE WHILE CONSIDERING LEGISLATIVE ACTION TO AMEND THE ELECTION SYSTEM IN ITS DECISION WEDNESDAY THE FIFTH CIRCUIT PANEL NOTED THAT SINCE 1965 MINORITIES THROUGHOUT TEXAS AS IN THE REST OF THE COUNTRY HAVE USED THE VOTING RIGHTS ACT SUCCESSFULLY TO CHALLENGE ATLARGE ELECTIONS FOR FEDERAL STATE AND LOCAL OFFICES BY CONTRAST THE FACE OF THE JUDICIAL BRANCH IN TEXAS CONTINUES TO BE AS IT HAS ALWAYS BEEN OVERWHELMINGLY WHITE WROTE JUDGE CAROLYN KING IN HER OPINION IN FIVE COUNTIES ACCORDING TO FIGURES CITED BY THE COURT NOT ONE JUDGE WAS AFRICANAMERICAN OR HISPANIC ONLY 12 OF 160 OR 75 OF THE JUDGES IN NINE COUNTIES NAMED IN THE SUIT WERE MINORITIES THOUGH MINORITIES MADE UP FROM 118 TO 466 OF THE COUNTYWIDE POPULATIONS TEXAS STATE OFFICIALS HAD ARGUED THAT COUNTYSIZE OR BIGGER DISTRICTS WERE VITAL TO ENSURE JUDGES' INDEPENDENCE FROM GROUPS THAT MIGHT WIELD UNDUE INFLUENCE IN SMALLER AREAS BOTH THE DISTRICT AND FIFTH CIRCUIT COURTS REJECTED THAT REASONING THE COURT DID UPHOLD THE ATLARGE SYSTEM IN ONE COUNTY WHERE IT FOUND NO LEGALLY SIGNIFICANT WHITE BLOC VOTING THOUGH THE RULING APPLIES TO ONLY EIGHT OF THE STATE'S 254 COUNTIES ROLANDO RIOS ATTORNEY FOR LEAGUE OF UNITED LATIN AMERICAN CITIZENS WHICH FILED THE SUIT SAID HIS GROUP WILL PRESS FOR A REMEDY TO BE APPLIED STATEWIDE INCLUDING TRAVIS COUNTY WHERE THE COURT UPHELD ATLARGE VOTING THE COURT GAVE TEXAS SIX MONTHS TO COME UP WITH AN ELECTIONS SYSTEM THAT DOESN'T DILUTE BLACK AND HISPANIC VOTES IN THE EIGHT COUNTIES SAYING THAT IF THE STATE FAILS THE FEDERAL DISTRICT COURT WILL HAVE THE POWER TO DEVISE A REMEDY LEAGUE OF UNITED LATIN AMERICAN CITIZENS ET AL VS CLEMENTS ET AL 908014 A TOP TOBACCOLIABILITY LAWYER CAN'T WITHDRAW FROM AN IMPORTANT CASE SIMPLY BECAUSE THE LAWSUIT IS A FINANCIAL BURDEN TO HIS LAW FIRM A JUDGE RULED FEDERAL DISTRICT JUDGE ALFRED J LECHNER JR SAID THE ATTORNEY MARC EDELL OF SHORT HILLS NJ HAS A DUTY TO HIS CLIENT TO STAY IN THE CLOSELY WATCHED CASE THE LAWSUIT KNOWN AS THE HAINES CASE ALLEGES THAT TOBACCO MAKERS COMMITTED FRAUD BY CONCEALING THE RISKS OF SMOKING MR EDELL AND HIS LAW FIRM BUDD LARNER GROSS ROSENBAUM GREENBERG & SADE BEGAN WITHDRAWING FROM TOBACCO LAWSUITS LAST YEAR BECAUSE THE FIRM HAD SPENT MILLIONS OF DOLLARS BANKROLLING THEM THE SUITS WERE TAKEN ON A CONTINGENCYFEE BASIS AND THE FIRM HAD NEVER RECEIVED A PENNY THE HAINES SUIT IS THE ONLY MAJOR CASE THAT THE LAW FIRM HAS LEFT IN ORDERING MR EDELL TO STAY IN THE CASE JUDGE LECHNER SAID THE LAWYER HAD SHOWN ONLY THAT ALL TOBACCO LAWSUITS WERE COSTLY NOT THAT THE HAINES SUIT ALONE WAS THE JUDGE ALSO RULED THAT THE CONTINGENCYFEE AGREEMENT IS A BINDING CONTRACT NOTING THAT MR EDELL'S CLIENT HAD BEEN UNABLE TO FIND ANOTHER LAWYER THE JUDGE SAID IT WOULD BE IN THE PUBLIC INTEREST FOR THE CASE TO CONTINUE THE DEFENDANTS WHICH HAD EXPRESSED NO OPINION ON WHETHER MR EDELL SHOULD BE ALLOWED TO WITHDRAW ARE LIGGETT GROUP INC A UNIT OF LEBOW WEKSEL & CO PHILIP MORRIS COS LORILLARD INC A UNIT OF LOEWS CORP RJ REYNOLDS TOBACCO CO NOW PART OF RJR NABISCO INC AND THE TOBACCO INSTITUTE A WASHINGTON TRADE GROUP BOB ORTEGA CONTRIBUTED TO THIS ARTICLE 9301290011 930129 WHO'S NEWS CALGENE INC CALGENE INC DAVIS CALIF DONALD L BAEDER 67 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE BOARD TO NINE MEMBERS AT THIS AGRIBUSINESS BIOTECHNOLOGY COMPANY HE IS A FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT REGENCY GROUP INC 9301290010 930129 ECONOMY CLINTON TO ASK CONGRESS TO ACT QUICKLY ON STIMULUS PLAN TACKLE DEFICIT LATER BY BRUCE INGERSOLL AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS DRAFTING A SHORTTERM STIMULUS PACKAGE THAT FOCUSES ON MORE THAN 16 BILLION IN DIRECT SPENDING WHILE DELAYING ACTION ON PROMISED TAX CREDITS UNTIL LATER THIS YEAR AT THE REQUEST OF WHITE HOUSE ECONOMIC ADVISER ROBERT RUBIN CABINET AGENCIES ARE COMPILING LISTS OF PROJECTS FOR WHICH SPENDING COULD BEGIN WITHIN MONTHS THE STIMULUS WILL BE A PACKAGE OF QUICK ALTERNATIVES THAT CAN HAVE EARLY SPENDOUT AND CAN BE JOB CREATING DEPUTY BUDGET DIRECTOR ALICE RIVLIN SAID TRANSPORTATION SECRETARY FEDERICO PENA FOR INSTANCE HAS HIS DEPARTMENT GATHERING DATA ON READYTOGO PROJECTS INCLUDING ROAD RESURFACING AND BRIDGE REPAIRS HENRY CISNEROS SECRETARY OF HOUSING AND URBAN DEVELOPMENT HAS TOLD MR RUBIN THAT 2 BILLION FOR COMMUNITY DEVELOPMENT PROJECTS COULD QUICKLY BE ABSORBED AND WOULD AID URBAN NEIGHBORHOODS MORE THAN BIG CONSTRUCTION PROJECTS THE PACKAGE WHICH THE ADMINISTRATION IS HOPING TO PUSH QUICKLY THROUGH CONGRESS IS EXPECTED TO INCLUDE AN EXTENSION OF LONGTERM JOBLESS BENEFITS THAT ARE DUE TO EXPIRE MARCH 6 THE UNEMPLOYMENT PROVISION WOULD LIKELY RUN PAST THE END OF THE CURRENT FISCAL YEAR ENDING SEPT 30 AND COST 3 BILLION TO 5 BILLION DESPITE SIGNS OF A STRENGTHENING ECONOMY THE ADMINISTRATION IS MOVING AHEAD WITH ITS STIMULUS PLAN TO HELP SPUR JOB CREATION BOOST CONFIDENCE AND AVOID POLITICAL CRITICISM IF THE ECONOMY FALTERS THE ECONOMIC OUTLOOK SEEMS TO BE IMPROVING MS RIVLIN SAID BUT NOT AS FAST AND AS SURELY AS MOST OF US WOULD WANT PRESIDENT CLINTON IS EXPECTED TO UNVEIL THE STIMULUS PACKAGE IN A FEB 17 SPEECH TO CONGRESS ALONG WITH HIS LONGERRANGE PLAN TO INCREASE FEDERAL INVESTMENT SPENDING AND REDUCE THE DEFICIT THOUGH NO FINAL DECISION HAS BEEN MADE ADMINISTRATION OFFICIALS AND LAWMAKERS CONFIRM THAT THE TWOPRONGED STRATEGY WAS DISCUSSED AT A WHITE HOUSE MEETING THIS WEEK BETWEEN THE PRESIDENT AND CHAIRMEN OF HOUSE AND SENATE FISCAL COMMITTEES FOR THE CURRENT FISCAL YEAR CONGRESS HAS APPROVED 165 BILLION LESS THAN WAS ALLOWED BY THE 1990 BUDGET LAW AND THIS COULD BE STRETCHED TO NEARLY 20 BILLION UNDER VARIOUS RESERVE PROVISIONS MOST OF THIS SHORTFALL IS IN DEFENSE BUT AS PRESIDENT MR CLINTON CAN EFFECTIVELY REAPPLY THIS MONEY FOR DOMESTIC PURPOSES STILL EVERY DOLLAR OF ADDED SPENDING WIDENS A DEFICIT ALREADY PROJECTED TO EXCEED 300 BILLION THIS YEAR AND MAKES IT TOUGHER FOR THE PRESIDENT TO MEET HIS DEFICIT GOALS THOUGH SOME OFFICIALS SPEAK OF A LARGER 25 BILLION PACKAGE THE ATTRACTIVENESS OF STAYING CLOSER TO THE 16 BILLION RANGE IS THAT THE BILL CAN BE DEFENDED AS STAYING WITHIN THE BUDGET CAPS THE INVESTMENT TAX CREDIT WHICH COULD BE MADE RETROACTIVE TO LATE 1992 WOULD BE SAVED WITH OTHER TAX BENEFITS TO BE USED AS LEVERAGE LATER IN CRAFTING THE DEFICITREDUCTION PACKAGE WHICH ALL AGREE WILL BE FAR MORE DIFFICULT FOR LAWMAKERS ADMINISTRATION OFFICIALS SAID MR CLINTON PROBABLY WILL CAST THE SPENDING AS INVESTMENTS THAT CAN BE JUSTIFIED FOR THE LONGTERM GOOD OF THE ECONOMY BUT THAT ALSO CAN BE LAUNCHED QUICKLY TO GENERATE JOBS THE CONGRESSIONAL BUDGET OFFICE HAS ITS DOUBTS SUCH PROJECTS USUALLY TAKE A LONG TIME TO GET INTO FULL SWING THE AGENCY TOLD CONGRESS THIS WEEK THE STIMULUS THEY IMPART THEREFORE MAY NOT BE TIMELY WITH THE REPORT YESTERDAY THAT THE ECONOMY GREW AT A 38 ANNUAL RATE IN THE FOURTH QUARTER SOME PRIVATE ECONOMISTS ARE CAUTIONING AGAINST TOO MUCH STIMULUS GROWTH COMBINED WITH THE RAISED ESTIMATE OF THE DEFICIT SUGGESTS THAT FISCAL STIMULUS SHOULD BE KEPT TO A MINIMUM SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC FINANCIAL CORP IN PITTSBURGH COMMITTEE CHAIRMEN AND CABINET SECRETARIES ALREADY ARE BEGINNING TO MANEUVER REP NORMAN MINETA CHAIRMAN OF THE HOUSE PUBLIC WORKS AND TRANSPORTATION COMMITTEE WAS TOLD BY CLINTON AIDES THIS WEEK TO EXPECT A POSSIBLE 24 BILLION PACKAGE WITH ONETHIRD FOR TRANSPORTATION AND INFRASTRUCTURE ONETHIRD FOR HEALTH AND ENVIRONMENT AND ONETHIRD FOR EDUCATION AND JOB TRAINING BUT THE CALIFORNIA DEMOCRAT SAID HE FAVORS NOT ONLY DEVOTING 8 BILLION TO INFRASTRUCTURE PROJECTS THAT BEGIN AND END QUICKLY BUT SPENDING AN ADDITIONAL 4 BILLION ON HIGHWAYS TRANSIT AND AIRPORTS BEFORE THE CURRENT FISCAL YEAR ENDS SEN MAX BAUCUS D MONT CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE WANTS TO ACCELERATE INVESTMENT IN SEWAGE AND WATER TREATMENT FACILITIES AMONG OTHER THINGS THE TRANSPORTATION DEPARTMENT HAS ASKED STATE TRANSPORTATION OFFICIALS WHAT PROJECTS COULD BEGIN QUICKLY THE AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS HAS BEEN SOUNDING OUT ITS MEMBERS ON HOW MANY HIGHWAY AND TRANSIT PROJECTS COULD BE STARTED ON 30 TO 90 DAYS' NOTICE IN A SIMILAR SURVEY IN DECEMBER STATE OFFICIALS ESTIMATED THEY COULD USE AN ADDITIONAL 86 BILLION FOR FISCAL 1993 AT HUD SECRETARY CISNEROS SAID IN A MEMO TO MR RUBIN THAT COMPARED WITH BIG CAPITAL PROJECTS SUCH AS HIGHWAYS OR AIRPORTS MORE MODEST COMMUNITY PROJECTS ACTUALLY GET TO CONSTRUCTION MORE QUICKLY BECAUSE OF THEIR SMALLER SCALE AND CAN BE FELT IN NEIGHBORHOODS WHERE THE ECONOMIC IMPACT OF THE TRADITIONAL CAPITAL PROJECTS MIGHT NOT REACH OFFICIALS AT THE ENVIRONMENTAL PROTECTION AGENCY SAID THEY ARE PREPARING A LIST FOR THE WHITE HOUSE THAT EMPHASIZES WASTEWATER TREATMENT PLANS AND FUNDING FOR TOXICWASTE CLEANUP THE NATIONAL PARK SERVICE WANTS 250 MILLION FOR MAINTENANCE CONSTRUCTION AND HISTORIC CONSERVATION PROJECTS IN THE NATION'S PARKS AND US FISH AND WILDLIFE SERVICE OFFICIALS HOPE TO REDUCE THE MAINTENANCE BACKLOG AT WILDLIFE REFUGES AND HATCHERIES WITHIN THE ARMY CORPS OF ENGINEERS THERE IS A SIMILAR PATTERN OF DEFERRED MAINTENANCE WORK AS WELL AS DEMANDS TO UPGRADE GENERATORS AT LARGE HYDROELECTRIC PLANTS THAT HAVE BEEN STRAINED AS THEY ARE INCREASINGLY USED FOR PEAK POWER NEEDS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID SHE HAS IDENTIFIED FIVE PROGRAMS FOR INCREASED FUNDING INCLUDING THE HEAD START PROGRAM AND AIDS RESEARCH LAURIE MCGINLEY CONTRIBUTED TO THIS ARTICLE 9301290009 930129 POLITICS & POLICY CONSERVATIVES FIGHTING FOR POSITIONS REMAINING IN CLINTON ADMINISTRATION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE DEMOCRATS ARE STARTING TO FLEX THEIR MUSCLES TO GAIN APPOINTMENTS IN THE CLINTON ADMINISTRATION AFTER LOSING OUT ON A NUMBER OF EARLY JOBS ONE BATTLE IS OVER WHO WILL DIRECT THE UNITED STATES INFORMATION AGENCY WHICH BROADCASTS INFORMATION ABOUT THE US ABROAD THE LEADING CANDIDATE FOR WEEKS HAS BEEN JOE DUFFEY THE PRESIDENT OF AMERICAN UNIVERSITY WHO IS A LIBERAL BUT NEOCONSERVATIVES ARE PUSHING PENN KEMBLE A SENIOR ASSOCIATE AT FREEDOM HOUSE A CONSERVATIVE HUMAN RIGHTS ADVOCACY GROUP BOTH MR KEMBLE AND MR DUFFEY HAVE TIES TO MR CLINTON MR DUFFEY AND HIS WIFE ANNE WEXLER ARE LONGTIME FRIENDS OF THE CLINTONS WHILE MR KEMBLE WAS AN ADVISER DURING THE CAMPAIGN AND DURING THE TRANSITION MR KEMBLE IS SAID TO HAVE WRITTEN MUCH OF THE SUCCESSFUL SPEECH THAT MR CLINTON DELIVERED IN OCTOBER SAYING ADVANCING DEMOCRACY WOULD BE HIS NO 1 FOREIGN POLICY GOAL THUS FAR MR CLINTON HAS SURPRISED MANY OF HIS SUPPORTERS BY NOT APPOINTING MANY CONSERVATIVE DEMOCRATS TO POSTS WHEN HE CHOSE HIS LONGTIME AIDE CAROL RASCO TO BE HIS DOMESTIC POLICY ADVISER IT WAS A SETBACK FOR THE MODERATES MANY EXPECTED BRUCE REED TO GET THE JOB BUT BOTH HE AND WILLIAM GALSTON WERE RELEGATED TO BE MS RASCO'S DEPUTIES MESSRS REED AND GALSTON HAVE TIES TO THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL WITH MR CLINTON OFTEN VAGUE ABOUT HIS OWN IDEOLOGICAL LEANINGS THE JOCKEYING FOR POSTS IN HIS GOVERNMENT HAS GROWN FIERCE AND BOTH SIDES WANT THE OPPORTUNITY TO SWAY THE PRESIDENT AN ESPECIALLY NASTY FIGHT IS FOR THE JOB OF ASSISTANT SECRETARY OF STATE FOR INTERAMERICAN AFFAIRS IT WAS WIDELY EXPECTED THAT MARIO BAEZA A BLACK CUBANAMERICAN WALL STREET LAWYER WOULD BE APPOINTED BUT RIGHTWING CUBANAMERICANS ARGUING THAT MR BAEZA IS SOFT ON CUBA HAVE LAUNCHED A TELEPHONE CAMPAIGN AGAINST HIM THEIR STRATEGY APPEARS TO HAVE BACKFIRED HOWEVER WITH THEIR OWN CHOICE FOR THE JOB SALLY SHELTON COLBY FORMER AMBASSADOR TO BARBADOS ENDING UP TAINTED BY THEIR AGGRESSIVE LOBBYING EFFORTS PEOPLE CLOSE TO THE ADMINISTRATION NOW PREDICT THAT A THIRD CANDIDATE COULD GET THE JOB KEN BRODY A GOLDMAN SACHS & CO LIMITED PARTNER WHO ALSO HAS TIES TO THE DEMOCRATIC LEADERSHIP COUNCIL HAS EMERGED AS THE LEADING CONTENDER TO HEAD THE EXPORTIMPORT BANK A GOVERNMENT BODY THAT ESSENTIALLY FINANCES EXPORTS BY US FIRMS THE FORMER REPUBLICAN LED A WIDELY SUCCESSFUL CLINTON FUNDRAISING DRIVE ON WALL STREET MR BRODY WHOSE BACKGROUND IS IN INVESTMENT BANKING DOESN'T BRING WITH HIM MUCH EXPERIENCE IN THE IMPORTEXPORT BUSINESS MANY EXPORTERS WERE PUSHING STUART EIZENSTAT A LAWYER AT POWELL GOLDSTEIN FRAZER & MURPHY AND FORMER CARTER ASSISTANT FOR DOMESTIC AFFAIRS AND POLICY MR BRODY BECAME THE LEADING CANDIDATE LARGELY BECAUSE OF HIS FUNDRAISING SUCCESSES FOR THE CLINTON CAMPAIGN ROBERT RUBIN HEAD OF MR CLINTON'S NEW NATIONAL ECONOMIC COUNCIL ALSO CAME FROM GOLDMAN SACHS A NEW YORK INVESTMENT FIRM THE LIBERALS ARE ALSO FIGHTING BACK WHEN ENERGY SECRETARY HAZEL O'LEARY WAS SAID TO FAVOR JOHN DEUTCH FORMER UNDERSECRETARY IN PRESIDENT CARTER'S ENERGY DEPARTMENT FOR A TOP POST ENVIRONMENTALISTS CAMPAIGNED HARD AGAINST IT MR DEUTCH WHO IS A PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY HAS ADVOCATED THAT THE ENERGY DEPARTMENT'S LABORATORIES CONTINUE TO FOCUS MOST OF THEIR EFFORTS ON NUCLEAR WEAPONS RESEARCH PRESIDENT CLINTON AND A GROWING CADRE OF EXPERTS FAVOR REDUCING WEAPONS RESEARCH AND REDIRECTING THE EFFORTS OF THE LABS TOWARD CIVILIAN PURPOSES NOW MR DEUTCH IS SAID TO BE IN LINE FOR A JOB AT THE PENTAGON IN ADDITION RUTH HARKIN WIFE OF SEN TOM HARKIN IS SAID TO BE SLATED TO BE NAMED HEAD OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT HER APPOINTMENT WOULD PLEASE PROGRESSIVES WHO WERE DISAPPOINTED WHEN SHE WAS CONSIDERED BUT NOT CHOSEN TO BE AGRICULTURE SECRETARY IN A STATE DEPARTMENT BATTLE JOSHUA MURAVCHIK IS SINKING FAST FOR THE JOB OF ASSISTANT SECRETARY FOR HUMAN RIGHTS MR MURAVCHIK WHO WAS WITH THE AMERICAN ENTERPRISE INSTITUTE IS A NEOCONSERVATIVE AND FORMER REAGAN DEMOCRAT HIS CANDIDACY FOR THE POSITION HAS BEEN HIT HARD BY HUMAN RIGHTS GROUPS THEIR CHOICE IS JOHN SHATTUCK WHO HAS WORKED FOR THE AMERICAN CIVIL LIBERTIES UNION AND AMNESTY INTERNATIONAL MR SHATTUCK IS NOW SEEN AS THE LIKELY FRONTRUNNER BUT OTHER CANDIDATES MAY ALSO BE CONSIDERED THERE IS ALSO A POLICY DISPUTE UNDER WAY WITH AN IDEOLOGICAL TWIST SOME ADMINISTRATION OFFICIALS WANT TO MERGE THE ARMS CONTROL AND DISARMAMENT AGENCY INTO THE STATE DEPARTMENT HUMAN RIGHTS ACTIVISTS HOWEVER WOULD RATHER SEE A STRONG DIRECTOR APPOINTED TO HELP THE INDEPENDENT AGENCY REGAIN THE INFLUENCE IT ONCE HELD IF MR CLINTON DECIDES TO KEEP THE AGENCY SEPARATE FROM THE STATE DEPARTMENT POSSIBLE CANDIDATES TO HEAD IT ARE JOSEPH NYE A HARVARD UNIVERSITY PROFESSOR AND SIDNEY DRELL WHO WORKED ON THE TRANSITION AND IS ASSOCIATED WITH STANFORD UNIVERSITY SEPARATELY MR CLINTON MAY BE HAVING SECOND THOUGHTS ABOUT WHETHER TO APPOINT ALAN LEVENTHAL A BOSTON DEVELOPER AND FUNDRAISER TO HEAD THE GENERAL SERVICES ADMINISTRATION MR LEVENTHAL'S FRIENDS CONTEND THAT THE PRESIDENT HAD DECIDED TO MAKE THE APPOINTMENT TWO WEEKS AGO BUT IT HAS YET TO BE ANNOUNCED SINCE THEN SEVERAL CONGRESSMEN HAVE COMPLAINED THAT MR LEVENTHAL COULD FACE POTENTIAL CONFLICTS HIS FIRM THE BEACON COS OVERSEES SIXMILLION SQUARE FEET OF COMMERCIAL OFFICE SPACE AS GSA ADMINISTRATOR HE WOULD OVERSEE THE GOVERNMENT'S PROPERTY AND LIKELY BE ASKED TO SEPARATE HIMSELF FROM HIS FAMILY'S FIRM HIS OPPONENTS HAVE ALSO NOTED THAT THE FIRM WAS THE DEVELOPER OF A CONTROVERSIAL PROJECT IN BOSTON IN WHICH IT WAS ALLEGED THAT SOME POWERFUL LOCAL POLITICIANS WERE INVOLVED IN KICKBACKS IN EXCHANGE FOR APPROVAL TO CONSTRUCT AN OFFICE BUILDING BOTH FEDERAL AND STATE INVESTIGATIONS WERE CONDUCTED BUT NO INDICTMENTS WERE MADE SOME LAWMAKERS ON CAPITOL HILL INCLUDING REP JOHN CONYERS OF MICHIGAN ARE PUSHING PAT MATHIAS A FORMER CARTER ADMINISTRATION OFFICIAL FOR THE POST ASRA Q NOMANI AND TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9301290008 930129 MARKETING BY SUEIN L HWANG NEW AGE BEVERAGES SWEETENED WATERS WITH A GOODFORYOU ATTITUDE ARE DROPPING GOURMET WATER CLAIMS UNDER GROWING REGULATORY PRESSURE THE FOOD AND DRUG ADMINISTRATION THIS MONTH PROPOSED REGULATIONS THAT DEFINE WHAT CAN BE LABELED OR ADVERTISED AS MINERAL SPRING OR ARTESIAN WATER THOUGH THE RULES AREN'T FINAL YET THEY COULD TAKE EFFECT AS EARLY AS MARCH AND THEY ARE PRODDING BOTTLERS TO BE MORE CLEAR ABOUT THEIR PRODUCTS' CONTENTS CLEARLY CANADIAN BEVERAGE WHICH USES WATER FROM A PRIVATE WELL IN CANADA ALREADY DROPPED THE MINERAL WATER MONIKER ON ITS PRODUCTS PARTLY BECAUSE OF EXPECTED REGULATORY PRESSURE THE COMPANY NOW LABELS THEM SPARKLING FLAVORED WATER BEVERAGES A SPOKESMAN EXPLAINS THE PROPOSED DEFINITION OF MINERAL WATER HAS BECOME SO TIGHT AND IMPOSSIBLE THAT WE DECIDED TO FORGET IT ROYAL MISTIC SPRING WATER MADE MOSTLY FROM PURIFIED TAP WATER MAY BE CHANGING ITS LABELING TO APPEASE REGULATORS ACCORDING TO INDUSTRY EXECUTIVES OFFICIALS OF JOSEPH VICTORI WINES WHICH MARKETS ROYAL MISTIC COULDN'T BE REACHED FOR COMMENT THE COMPETING UNSWEETENED BOTTLED WATER INDUSTRY WHICH HAS LOBBIED FOR ACCURACY IN LABELING FOR OVER A DECADE APPLAUDS THE GREATER SCRUTINY THIS WAY THERE'S A LEVEL PLAYING FIELD FOR ALL PLAYERS SAYS LISA PRATS OF THE INTERNATIONAL BOTTLED WATER ASSOCIATION WHOSE MEMBERS INCLUDE THE MARKETERS OF EVIAN AND PERRIER SOME MARKETING EXPERTS SAY THE 700 MILLIONAYEAR NEW AGE CATEGORY WILL EMERGE RELATIVELY UNSCATHED CONSUMERS THEY SAY CONSIDER TASTE AND IMAGE MORE IMPORTANT THAN A PRODUCT'S CONTENTS THE CONSUMER IS WISING UP AND USING THEM AS SOFT DRINKS SAYS TOM PIRKO PRESIDENT OF BEVMARK A BEVERAGE CONSULTING FIRM THE PRODUCTS SEEM HEALTHY BECAUSE OF THE IMAGES THEY PROJECT BUT THEY'RE NOT SEEN AS WATERS THE MARLBORO MAN IS GALLOPING TO THE POST OFFICE AS REGULATIONS SHRINK AVAILABLE VENUES FOR TOBACCO ADVERTISING CIGARETTE MARKETERS ARE RELYING MORE ON DIRECT MAIL TO GET THEIR MESSAGES ACROSS PHILIP MORRIS IS REAPING AN EXTRA DIVIDEND FROM ITS MARLBORO ADVENTURE TEAM CONTEST AND PROMOTIONAL GIVEAWAY A GOLD MINE OF PERSONAL DATA ON THE SMOKING HABITS OF THOUSANDS OF WOULDBE DAREDEVILS CONTESTANTS VYING TO WIN A PLACE ON THE ADVENTURE TEAM AND ITS 11DAY MOTORCYCLING AND RAFTING ESCAPADE MUST COMPLETE QUESTIONNAIRES ABOUT THEIR OCCUPATION BUSINESS ADDRESS AND TELEPHONE NUMBER SMOKING HISTORY AND BRAND PREFERENCES THE COMPANY ALSO SOLICITS DATA IN CONNECTION WITH A RELATED MAILIN GIVEAWAY THAT SWAPS ACCUMULATED MARLBORO WRAPPERS FOR SUCH RUGGED ITEMS AS AN ALLWEATHER BLACK CIGARETTE LIGHTER OR A CARIBINER KEY RING FROM METAL RINGS USED IN MOUNTAIN CLIMBING IN THE PAST FEW YEARS SAYS A TOBACCOINDUSTRY EXECUTIVE PHILIP MORRIS HAS PUT A LOT OF EMPHASIS ON DIRECT MAIL THIS PROGRAM REPRESENTS AN INCREASED EMPHASIS THE ADVENTURETEAM PROMOTION WHICH BEGAN IN NOVEMBER AIMS TO BUILD BRAND LOYALTY AMONG YOUNG MALE SMOKERS THE PEOPLE TOBACCO MARKETERS COVET MOST OUT HERE IS NO PLACE FOR ANYTHING WIMPY BOASTS THE CATALOG CAPTION BELOW THE KEY RING THE CONTEST IS ALSO A WAY TO FIND SMOKERS WHO HAVE RECENTLY TURNED 21 THE LEGAL SMOKING AGE THEIR LISTS PROBABLY DON'T INCLUDE THE NEW LEGAL SMOKER AND THIS IS ONE WAY TO GET THEM SAYS EDWARD POPPER DEAN OF BUSINESS AT AURORA COLLEGE IN CHICAGO PHILIP MORRIS WOULD LIKE TO HAVE SOMETHING IN A PERSON'S MAILBOX THE DAY AFTER THEY REACH THE LEGAL SMOKING AGE PHILIP MORRIS SAYS THE PROMOTION HELPS BUILD ITS DATABASE OF CONSUMERS BUT ISN'T INTENDED TO TARGET ANY PARTICULAR AGE OR SEX MARLBORO'S LATEST ADVENTURE FOLLOWS IN THE TRACKS OF CAMEL CASH A GIVEAWAY THAT HAS BEEN RUNNING SINCE LATE 1991 AND HAS SWELLED THE DATABASE OF RIVAL RJR NABISCO HOLDINGS PUNGENT PACKAGING SOON MAY HAVE SHOPPERS FOLLOWING THEIR NOSES DOWN SUPERMARKET AISLES AS ANOTHER WEAPON IN THE GROCERY SHELFSPACE WARS PURVEYORS OF EVERYTHING FROM DRINK MIXES TO SNACKS ARE TRYING TO INFUSE FOOD PACKAGING WITH MOUTHWATERING AROMAS THOUGH COMPANIES ARE MUM ABOUT DETAILS INDUSTRY OFFICIALS SAY KRAFT GENERAL FOODS PLANS TO INJECT EXOTIC AROMAS INTO CONTAINERS OF ITS FLAVORED INTERNATIONAL COFFEES LINE KRAFT A PHILIP MORRIS UNIT DENIES HAVING ANY SUCH PLANS IT SAYS IT CONSIDERED COFFEECAN AROMAS A FEW YEARS BACK BUT REJECTED THE TECHNOLOGY AS INFERIOR AND TOO COSTLY RJR NABISCO AND KEEBLER ARE SAID TO BE INTERESTED IN AN AROMATIC CHOCOLATECHIPCOOKIE PACKAGE A SPOKESMAN FOR NABISCO SAYS THE COMPANY HAS NO PLANS TO USE THE TECHNOLOGY A KEEBLER SPOKESMAN SAYS THE COMPANY LOOKED INTO THE TECHNOLOGY BUT FOUND IT TOO EXPENSIVE MICROWAVE FARE ALSO MIGHT BENEFIT FROM PUNGENT PACKAGING THINGS ARE SO PROCESSED AND PACKAGED THE AROMA HAS BEEN LOST SAYS WILLIAM ZICK VICE PRESIDENT OF MARKETING AT INTERNATIONAL FLAVORS & FRAGRANCES IFF RESEARCHERS ARE TRYING TO PERFECT A MICROWAVEDINNER PACKAGE THAT WOULD RELEASE HOMECOOKED BOUQUETS WHEN HEATED TONY ADAMS VICE PRESIDENT OF MARKETING RESEARCH AT CAMPBELL SOUP WHICH IS ALSO WORKING ON THE MICROWAVE PROBLEM ADDS IF SOMEONE REALLY DOES IT RIGHT AROMA IS A GREAT SOURCE OF COMPETITIVE ADVANTAGE MEN ENJOY GROCERY SHOPPING MORE THAN WOMEN ACCORDING TO A RECENT STUDY BY YANKELOVICH PARTNERS INC BECAUSE THEY FOCUS ON GETTING SPECIFIC ITEMS AND GETTING OUT OF THE STORE GOURMET GARAGE A WAREHOUSE CLUB OPENS IN NEW YORK CITY DISCOUNT ITEMS INCLUDE SMOKED SALMON AT 17 A POUND AND ORGANICALLY GROWN SHIITAKE MUSHROOMS AT 6 A POUND 9301290007 930129 FINANCING BUSINESS COMAIR HOLDINGS INC COMAIR HOLDINGS INC CINCINNATI SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 175 MILLION COMMON SHARES ALL SHARES WILL BE OFFERED BY THE COMPANY ALEX BROWN & SONS INC AND KIDDER PEABODY & CO ARE UNDERWRITERS FOR THE OFFERING PROCEEDS WILL BE USED TO PARTIALLY FINANCE THE ACQUISITION OF CANADAIR REGIONAL JETS AND RELATED SUPPORT EQUIPMENT IN ADDITION TO FINANCING NEW TERMINAL FACILITIES AT THE REGIONAL AIRLINE'S CINCINNATI/NORTHERN KENTUCKY INTERNATIONAL AIRPORT 9301290006 930129 AMERICAN RE OFFERING RAISES 360 MILLION MORE THAN EXPECTED A WALL STREET JOURNAL NEWS ROUNDUP AMERICAN RE CORP RAISED 360 MILLION IN ITS INITIAL PUBLIC OFFERING FETCHING AS MUCH AS 70 MILLION MORE THAN IT ANTICIPATED THE PRINCETON NJ COMPANY WILL BEGIN TRADING TODAY ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL ARN AMERICAN RE SOLD 116 MILLION SHARES TO THE PUBLIC FOR 31 A SHARE WHEN IT ANNOUNCED PLANS TO GO PUBLIC IN NOVEMBER IT ANTICIPATED SELLING 1075 MILLION SHARES AT 27 TO 29 A SHARE BUT A STRONG MARKET FOR PROPERTY AND CASUALTY STOCKS STRENGTHENED BUYER INTEREST IN THE ISSUE THE EXTRA PROCEEDS WILL ALLOW AMERICAN RE TO WRITE MORE REINSURANCE WHICH IN TURN WILL HELP FUTURE EARNINGS KOHLBERG KRAVIS ROBERTS THE LEVERAGE BUYOUT FIRM BOUGHT AMERICAN RE FROM AETNA LIFE & CASUALTY CO IN SEPTEMBER FOR 142 BILLION TWO MONTHS LATER FOLLOWING A RALLY IN PROPERTY AND CASUALTY STOCKS IN THE WAKE OF HURRICANE ANDREW KKR UNVEILED PLANS TO TAKE THE COMPANY PUBLIC THE OFFERING REPRESENTS A WINDFALL FOR KKR THE PARTNERSHIP PAID AN AVERAGE OF 10 A SHARE FOR THEIR 30 MILLION SHARES IN AMERICAN RE AT 31 A SHARE KKR'S HOLDINGS HAVE A VALUE OF 930 MILLION OR 630 MILLION MORE THAN IT PAID FOUR MONTHS AGO FOLLOWING THE OFFERING KKR OWNS 63 OF THE COMPANY THE PUBLIC OWNS 24 AND AETNA AND COMPANY MANAGEMENT EACH OWN ABOUT 65 THE ENTHUSIASTIC RESPONSE TO THE OFFERING ADDED TO THE CRIES THAT AETNA COULD HAVE SOLD AMERICAN RE FOR MORE AETNA ARGUES THAT IT COULD NOT HAVE FORESEEN THE STOCK RALLY THAT FOLLOWED THE AUGUST HURRICANE IN FLORIDA AND LOUISIANA PRICES JUMPED AFTER HURRICANE ANDREW IN THE BELIEF THAT THE HUGE LOSSES WOULD STOP A PRICE WAR THAT HAS BEEN DRIVING DOWN PREMIUMS FOR FIVE YEARS 9301290005 930129 QUAKER STATE POSTS CHARGE LINKED TO PLAN TO EXIT COAL BUSINESS OIL CITY PA QUAKER STATE CORP ANNOUNCED IT IS EXITING FROM ITS UNPROFITABLE COAL BUSINESS AND POSTED A 377 MILLION RELATED CHARGE THE COMPANY SAID THE 377 MILLION CHARGE STEMS FROM ITS DECISION TO CLASSIFY ITS VALLEY CAMP COAL UNIT AS A DISCONTINUED OPERATION FOR THE 1992 FOURTH QUARTER QUAKER STATE POSTED A LOSS OF 358 MILLION OR 132 A SHARE REFLECTING THE CHARGE ON REVENUE OF 174 MILLION IN THE YEARAGO PERIOD THE COMPANY HAD NET OF 36 MILLION OR 14 CENTS A SHARE RESTATED TO EXCLUDE DISCONTINUED COAL OPERATIONS ON REVENUE OF 1716 MILLION QUAKER STATE SAID IT IS PUTTING UP ITS VEHICULAR LIGHTING UNIT FOR SALE AS PART OF A RESTRUCTURING AND HIRED JP MORGAN SECURITIES TO TRY TO SELL IT THE UNIT HAD 64 MILLION IN SALES IN 1992 IN ADDITION QUAKER STATE SAID IT IS TAKING A 626 MILLION CHARGE FOR POSTRETIREMENT BENEFITS EFFECTIVE THROUGH JAN 1 1992 THE COMPANY ALSO ANNOUNCED A ONETIME 2 MILLION CHARGE TO RESERVE FOR THE EVENTUAL REDESIGN OF ITS MINITLUBE FASTLUBE UNIT WHICH INCLUDES CHANGING THE NAME OF MINITLUBE OUTLETS TO Q LUBE FOR 1992 THE COMPANY POSTED A LOSS OF 938 MILLION OR 345 A SHARE REFLECTING 1023 MILLION IN CHARGES ON REVENUE OF 7244 MILLION THAT COMPARES WITH YEARAGO NET OF 227 MILLION OR 84 CENTS A SHARE WHICH INCLUDED A 72 MILLION CREDIT FOR AN ACCOUNTING CHANGE ON REVENUE OF 7001 MILLION QUAKER STATE SAID IT WILL FOCUS ON CORE BUSINESSES INCLUDING ITS OIL REFINING UNIT ITS MINITLUBE RETAIL BUSINESS AND ITS OIL AND GAS PRODUCTION OPERATION THE COMPANY HAS HIRED JP MORGAN TO NEGOTIATE THE SALE OF VALLEY CAMP COAL TALKS INVOLVING THE SALE OF HELEN MINING ARE UNDER WAY 9301290004 930129 PACIFIC GAS & ELECTRIC CO STOCK SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID IT PLANS TO REDEEM ALL OF ITS 73 MILLION OF 948 SERIES R 25 REDEEMABLE FIRST PREFERRED STOCK HOLDERS OF EACH OF THE 29 MILLION SHARES OUTSTANDING WILL RECEIVE 283225 INCLUDING AN ACCRUED DIVIDEND THE UTILITY CONCERN SAID THE REDEMPTION WILL BE EFFECTIVE FEB 28 PACIFIC GAS & ELECTRIC SAID THE REDEMPTION IS EXPECTED TO REDUCE ANNUAL FINANCING COSTS BY ABOUT 418000 9301290003 930129 GLENFED INC POSTS 794 MILLION LOSS FOR ITS 2ND QUARTER BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL GLENDALE CALIF GLENFED INC POSTED A 794 MILLION FISCAL SECONDQUARTER LOSS LEAVING IT SIGNIFICANTLY UNDERCAPITALIZED BY NEW REGULATORY STANDARDS AND INCREASING THE LIKELIHOOD THAT IT WILL BE SEIZED SOON BY REGULATORS TO MEET STIFFER CAPITAL REQUIREMENTS AND AVERT SEIZURE THE FIFTH LARGEST US THRIFT SAID IT MUST EITHER RAISE BETWEEN 350 MILLION AND 450 MILLION OR FIND A BUYER BY JUNE 30 MEANWHILE IT FACES VARIOUS OPERATING RESTRICTIONS IMPOSED BY THE OFFICE OF THRIFT SUPERVISION FURTHER BECAUSE OF A CASH SQUEEZE THE COMPANY SAID IT WILL BE UNABLE TO MAKE A 46 MILLION SUBORDINATED DEBT PAYMENT IN MARCH ALTHOUGH IT IS IN PRELIMINARY DISCUSSIONS WITH DEBTHOLDERS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GLENFED'S STOCK PRICE PLUNGED 150 TO CLOSE AT 250 ON VOLUME OF 17 MILLION SHARES THE LOSS FOR THE SECOND QUARTER ENDED DEC 31 EQUALED 232 A SHARECOMPARED WITH NET INCOME OF 276 MILLION OR 81 CENTS A SHARE A YEAR EARLIER AND WAS TRIGGERED BY PROVISIONS AND WRITEDOWNS TOTALING 987 MILLION ON A PORTFOLIO OF TROUBLED REAL ESTATE ASSETS OMINOUSLY PROBLEM ASSETS ARE STILL RISING THEY AMOUNT TO 9156 MILLION OR 513 OF TOTAL ASSETS UP FROM 8901 MILLION AT THE END OF THE LAST QUARTER AND 8644 MILLION A YEAR EARLIER THE THRIFT MUST GREATLY BOLSTER ITS CUSHION AGAINST LOSSES BY JUNE 30 RAISING THE CORE CAPITAL RATIO AT ITS GLENDALE FEDERAL BANK UNIT TO 5 OF ASSETS FROM A CURRENT 256 AND INCREASE ITS RISKBASED CAPITAL RATIO TO 10 FROM 635 ITS TANGIBLE CAPITAL IS 152 BARELY ABOVE THE 15 MINIMUM GLENFED HAS TOTAL ASSETS OF 178 BILLION A DEBT RESTRUCTURING CURRENTLY UNDER WAY COULD GENERATE AS MUCH AS 128 MILLION IN NEW CAPITAL FOR THE THRIFT BUT THAT WOULD STILL LEAVE IT WELL SHORT OF REGULATORY MINIMUMS IN DECEMBER GLENDALE FEDERAL REACHED AN AGREEMENT TO SWAP 105 MILLION IN PRIVATELY PLACED SUBORDINATED DEBT FOR NEW 12 PREFERRED STOCK IT HAS MADE A SIMILAR SWAP OFFER FOR 36 MILLION IN PUBLICLY TRADED SUBORDINATED CAPITAL NOTES THE NEW STOCK UNLIKE THE OTHER SECURITIES PROBABLY WOULD BE COUNTED AS CORE CAPITAL FOR THE SIXMONTH PERIOD GLENFED'S LOSS WAS 962 MILLION OR 281 A SHARE COMPARED WITH NET OF 516 MILLION OR 151 A SHARE A YEAR EARLIER 9301290002 930129 TODAY'S FASTPACED MARKETS STILL HAVE ROOM FOR THE HUMN ELMENT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS IN LITTLEKNOWN SEMTECH CORP NO DOUBT THOUGHT THEY HAD HIT THE JACKPOT LAST WEEK TRADING IN THE NEWBURY PARK CALIF SEMICONDUCTOR COMPANY SURGED LAST FRIDAY ON NEWS OF A BIG ADVANCE IN COMPUTERCHIP TECHNOLOGY THE BREAKTHROUGH ACCORDING TO PRESS REPORTS CARRIED AROUND THE WORLD WOULD ENABLE COMPUTERCHIP MANUFACTURERS TO PRODUCE CIRCUITS 1/200TH THE THICKNESS OF A HUMAN HAIR INDUSTRY ANALYSTS CHEERED SEMTECH'S STOCK WHICH HAD BEEN LUMBERING AROUND 250 A SHARE IMMEDIATELY BECAME A HOT PROPERTY SURGING 25 TO CLOSE AT 3125 ON THE AMERICAN STOCK EXCHANGE TRADING VOLUME JUMPED TO 133700 SHARES FRIDAY MORE THAN 28 TIMES THE AVERAGE FOR THE REST OF THE WEEK TROUBLE IS SEMTECH HAD NOTHING TO DO WITH THE BIG BREAKTHROUGH THE CREDIT GOES INSTEAD TO SEMATECH AN INDUSTRYGOVERNMENT RESEARCH CONSORTIUM IN AUSTIN TEXAS THE NEWS STORIES GOT THE NAMES RIGHT BUT MANY INVESTORS IN THEIR SCRAMBLE FOR A WINNER DROPPED THE A WE'VE BEEN SITTING HERE TRYING TO DISSUADE THE PEOPLE WHO HAVE BEEN CALLING IN SAYS SEMTECH'S PRESIDENT JOHN POE SEMATECH THE CONSORTIUM IS DECIDEDLY NOT PUBLICLY TRADED IT RECEIVES 100 MILLION A YEAR FROM THE GOVERNMENT AND HAS TAXFREE INTERNAL REVENUE SERVICE STATUS BUT IT GOT MANY CALLS FROM BROKERS WANTING TO KNOW ITS TRADING SYMBOL WE RECEIVED AT LEAST A DOZEN OF THESE CALLS ON FRIDAY A SPOKESMAN SAYS SHEARSON LEHMAN BROTHERS INC AND PRUDENTIAL SECURITIES INC TURNED UP ON THE LINE SAYING THEY WERE CALLING ON BEHALF OF THEIR CLIENTS BY YESTERDAY'S CLOSE SEMTECH'S STOCK HAD EASED BACK TO 2875 WHILE THE HUBBUB THIS TIME WAS BIGGER THAN USUAL SEMTECH'S MR POE SAYS HE IS GETTING USED TO THE MIXUPS HE SAYS HE HAS HAD TO DODGE CONFUSED INVESTORS SINCE SEMATECH BEGAN FIVE YEARS AGO THE LATEST SNAFU IS A RERUN OF AN EPISODE FROM TWO YEARS AGO WHEN FORMER COMMERCE SECRETARY ROBERT MOSBACHER VISITED A SIMILARLY NAMED BUT CLOSELY HELD SILICON VALLEY COMPANY AND SEMTECH GOT THE MARKET CREDIT FOR THE HONOR MR POE THOUGH THINKS HE HAS A WAY TO PREVENT FURTHER PROBLEMS AT LEAST IN RELATION TO SEMATECH WE COULD USE A LITTLE ROYALTY MONEY JOKES MR POE SUGGESTING 1 MILLION AS A FAIR SUM FOR THE COMPANY TO CHANGE ITS NAME WHY DON'T YOU MENTION THAT AND SEE WHAT THEY SAY 9301290001 930129 LUMBER PRICES CONTINUE GAINS HELPING PROFITS FEDERAL CURBS ON CUTTING TIMBER ARE A FACTOR SUPPLIES AT 20YEAR LOW BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL SEVERE WEATHER IN THE PACIFIC NORTHWEST RESULTED IN A DROP IN PLYWOOD PRICES LAST WEEK AFTER A MONTHLONG RISE BUT THAT BREAK IS EXPECTED TO BE TEMPORARY AND OVERALL LUMBER PRICES TO GO ON RISING AS THE GOVERNMENT CONTINUES ITS RESTRAINTS ON TIMBERCUTTING TIMBER INVENTORIES HAVE PLUNGED TO THEIR LOWEST LEVELS IN 20 YEARS AND GOVERNMENT LOGGING RESTRAINTS AREN'T EXPECTED TO EASE UNDER THE CLINTON ADMINISTRATION MEANWHILE SOME LUMBER COMPANIES ARE PROFITING FROM THE HIGHER PRICES LAST WEEK A YEARLONG RISE IN PLYWOOD PRICES SAW A FURIOUS MOMENTUM STOP SAYS SAM SHERRILL EXECUTIVE EDITOR OF CC CROW PUBLICATIONS WHICH TRACKS LUMBER COSTS PLYWOOD PRICES FELL 2 LAST WEEK TO 365 PER 1000 BOARD FOOT FROM THE PREVIOUS WEEK'S 372 WHICH WAS A RECORD BUT EVEN WITH LAST WEEK'S DECLINE PLYWOOD PRICES REMAINED MORE THAN 5 HIGHER THAN A MONTH AGO AND 39 HIGHER THAN A YEAR AGO THE WEATHER IS CREATING A TEMPORARY BUYING WINDOW BECAUSE PURCHASES FELL OFF AS BUILDERS WAITED OUT WINTER STORMS MR SHERRILL SAYS WHEN WE GET SUNSHINE BACK THE BUYING PATTERN WILL COME IN AGAIN PRICES FOR SPRUCE PINE AND FIR TWOINCH BY FOURINCH RANDOM LENGTH BOARDS WERE 305 PER 1000 BOARD FEET LAST WEEK UP 16 FROM 264 THREE WEEKS EARLIER AND 41 HIGHER THAN THEY WERE A YEAR AGO PRICES ARE RISING BECAUSE OF A SHORTAGE OF AVAILABLE TIMBER ANALYSTS SAY FUTURES PRICES FOR LUMBER ROSE BY THE DAILY LIMIT OF 5 PER 1000 BOARD FEET ON THE CHICAGO MERCANTILE EXCHANGE EVERY DAY THIS WEEK IN ANTICIPATION OF FURTHER SUPPLY SHORTAGES THE KEY REASONS FOR THE SHORTAGE ARE ENVIRONMENTAL CONSTRAINTS ON CUTTING IN THE PACIFIC NORTHWEST SAYS DAVE SEIDERS CHIEF ECONOMIST OF THE NATIONAL ASSOCIATION OF HOME BUILDERS WE'RE GETTING ALL KINDS OF CALLS FROM BUILDERS WHO THINK THE MILLS IN THEIR LOCAL MARKETS ARE GOUGING THEM ON TWOBYFOURS HE SAYS EVERY MONTH THERE ARE MORE MILLS SHUT DOWN FOR LACK OF A SUPPLY OF LOGS SAYS DANIEL L GOLDY AN ECONOMIST FOR THE WESTERN FOREST INDUSTRIES ASSOCIATION WHOSE MEMBERS INCLUDE LOCAL LUMBER AND PLYWOOD PRODUCERS AS THE DEMAND FOR THE SCARCE WOOD INCREASES THE PRICE RUNUP IS GETTING MORE AND MORE SPECTACULAR HE SAYS ACCORDING TO PRELIMINARY FIGURES FOR THE 53 WEEKS ENDED JAN 2 FROM THE WESTERN WOOD PRODUCTS ASSOCIATION A LUMBER TRADE GROUP PRODUCTION AT MILLS IN THE NORTHWEST WAS 1871 BILLION BOARD FEET DOWN FROM 1917 BILLION IN THE YEAREARLIER PERIOD THE SHORTAGES OF LUMBER SUPPLIES COUPLED WITH HIGHER PRICES WILL BECOME MORE APPARENT TO CONSUMERS AS THEY BEGIN BUILDING REMODELING OR REPAIRING HOMES ACCORDING TO THE NATIONAL ASSOCIATION OF HOME BUILDERS THE ASSOCIATION EXPECTS HOUSING STARTS TO INCREASE 10 THIS YEAR TO 13 MILLION WHICH WOULD STILL BE DOWN FROM A HIGH OF 1810000 REACHED IN THE MID1980S POTLATCH CORP A LUMBER PRODUCTS CONCERN THAT OWNS 15 MILLION ACRES OF PRIME TIMBER PROPERTY CALLS THE SITUATION AN ARTIFICIAL SHORTAGE PENN SIEGEL GROUP VICE PRESIDENT OF PULP AND PAPERBOARD AT POTLATCH PREDICTS RESTRICTIONS ON LOGGING IN THE NORTHWEST WILL COST CONSUMERS 10 BILLION TO 15 BILLION THIS YEAR AND SAYS THAT'S A DIRECT RESULT OF THE SPOTTED OWL HABITAT CONTROVERSY IT ISN'T THAT WE'VE RUN OUT OF TREES HE SAYS IT'S A CHANGE IN DESIRE OF HOW THE GOVERNMENT WANTS TO USE THOSE TREES THAT ARE ON FEDERAL LAND HE PREDICTS THE CLINTON ADMINISTRATION WILL BE MORE FAVORABLE TO THE ENVIRONMENT THAN PAST ADMINISTRATIONS HAVE BEEN THE FEDERAL GOVERNMENT HE SAYS IS HEADING RAPIDLY TO THE CESSATION OF TIMBERCUTTING FROM PUBLIC LANDS ED WHITELAW PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF OREGON DISPUTES THE CLAIM THAT PROTECTING THE HABITAT OF THE OWL WILL COST CONSUMERS THAT MUCH HE SAYS THOSE WHO BLAME THE OWL ARE ASSUMING THAT NO OTHER WOOD PRODUCTS ARE AVAILABLE AS SUBSTITUTES FOR DOUGLAS FIR WHICH IS THE MAIN HABITAT AREA OF THE SPOTTED OWL HE SAYS NONWOOD SUBSTITUTES ARE ALSO AVAILABLE NONETHELESS POTLATCH AND OTHERS ARE BENEFITING FROM THE SHORTAGE OF LOGS IN A SHARP TURNAROUND FOR EXAMPLE WEYERHAEUSER CO REPORTED FOURTHQUARTER 1992 EARNINGS OF 175 MILLION IN ITS TIMBERLANDS AND WOOD PRODUCTS SEGMENT COMPARED WITH A LOSS OF 67 MILLION IN THE SEGMENT A YEAR EARLIER POTLATCH'S WOOD PRODUCTS DIVISION REPORTED A 39 GAIN IN SALES TO 1094 MILLION IN THE FOURTH QUARTER FROM THE YEAREARLIER QUARTER POPE & TALBOT INC ANOTHER FOREST PRODUCTS CONCERN REPORTED THAT FOURTHQUARTER REVENUE FOR ITS WOOD PRODUCTS DIVISION ROSE TO 62 MILLION FROM 402 MILLION A YEAR EARLIER SOME ANALYSTS AND EXPERTS PLAY DOWN THE TIMBER SHORTAGE ISSUE ARGUING THAT THE FEDERAL GOVERNMENT SUPPLY MAKES UP ONLY A SMALL PERCENTAGE OF THE NATIONAL TIMBER CUT AND THAT THERE ARE MANY OTHER SOURCES OF LOGS GOVERNMENT RESTRAINTS MAY CAUSE OVERCUTTING PROBLEMS ELSEWHERE SOME ARGUE THE WEST HAS ALWAYS PRODUCED MORE WOOD THAN THE SOUTH BUT NOW WITH THE SHORTAGES HERE IN THE WEST THE SOUTH IS OVERCUTTING TO COMPENSATE SAYS MR SHERRILL OF THE CROW NEWSLETTER HE EXPLAINS THAT BECAUSE THE LAND IN THE SOUTH IS 90 PRIVATELY OWNED THE LAWS THAT GOVERN THE WEST DON'T AFFECT THE SOUTH ALL EYES IN THE TIMBER INDUSTRY ARE FOCUSING ON THE CLINTON ADMINISTRATION'S TIMBER SUMMIT EXPECTED THIS SPRING SOME EXPECT THE MEETING TO ELIMINATE A LOT OF THE UNCERTAINTY ABOUT FEDERAL TIMBER SUPPLIES OTHERS HOPE THE SUMMIT WILL END SOME OF THE SPECULATION AND PANIC BUYING THAT HAVE EXACERBATED PRICE INCREASES THERE'S NO SHORTTERM SOLUTION SAYS MR SHERRILL THE ONLY REAL LONGTERM SOLUTION MUST BE FEDERAL POLICIES ON RESOURCES THAT TAKE INTO ACCOUNT THE VALUE OF TIMBER TO BALANCE ECOLOGY WITH ECONOMY 9301280175 930128 FORMER GM CHAIRMAN ROGER B SMITH WILL STEP DOWN AS A DIRECTOR IN APRIL BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WITH GENERAL MOTORS CORP CHAIRMAN JOHN G SMALE PUSHING AN OVERHAUL OF THE NO 1 AUTO MAKER'S BOARD FORMER GM CHAIRMAN ROGER B SMITH SAID HE WILL STEP DOWN AS A DIRECTOR IN APRIL THEY ARE LOOKING AT RESHAPING THE BOARD IN A NEW IMAGE SAID MR SMITH WHO SINCE LAST APRIL HAS WATCHED GM'S OUTSIDE DIRECTORS REPUDIATE MANY OF HIS MANAGEMENT DECISIONS I'M ALL FOR THAT MR SMITH 67 YEARS OLD RETIRED AS GM'S CHAIRMAN ON JULY 31 1990 ONE LIKELY ADDITION TO GM'S BOARD IS LOUIS SULLIVAN FORMER SECRETARY OF HEALTH AND HUMAN SERVICES UNDER PRESIDENT BUSH AND PRESIDENT OF MOREHOUSE SCHOOL OF MEDICINE IN ATLANTA DR SULLIVAN WHO WOULD BRING EXPERIENCE IN HEALTH POLICY TO A COMPANY THAT'S WRESTLING WITH HUGE MEDICAL COST PROBLEMS THIS WEEK REFERRED QUESTIONS ABOUT HIS PENDING NOMINATION TO GM A GM SPOKESMAN DECLINED TO COMMENT ON SPECULATION GM DID CONFIRM MR SMITH'S DECISION TO LEAVE THE BOARD FOLLOWING REPORTS IN THE WASHINGTON POST AND THE DETROIT NEWS MR SMALE WHO LED THE BOARD'S SHAKEUP OF GM'S TOP MANAGEMENT LAST FALL ALSO IS LOOKING TO RECRUIT MORE NONEMPLOYEE DIRECTORS WHO HAVE STRONG BUSINESS EXPERIENCE ACCORDING TO COMPANY OFFICIALS AND OTHERS LAST MONTH GM'S DIRECTORS ADDED ALUMINUM CO OF AMERICA CHAIRMAN PAUL H O'NEILL AN ACTIVIST EXECUTIVE WHO IS LEADING A BROAD RESTRUCTURING AT THAT OLDLINE COMPANY BESIDES MR SMITH TWO OTHER LONGTIME GM DIRECTORS REV LEON SULLIVAN AND MARVIN GOLDBERGER ARE EXPECTED TO STEP DOWN THIS SPRING AS THEY APPROACH 70 THE MANDATORY RETIREMENT AGE SEPARATELY THERE WERE THESE OTHER DEVELOPMENTS AT GM GM IS CONSIDERING ANOTHER ROUND OF BUYOUTS OR EARLY RETIREMENTS TO HIT A GOAL OF CUTTING 10000 SALARIED JOBS BY THE END OF THE YEAR COMPANY OFFICIALS WOULDN'T DISCUSS DETAILS OF THE PROPOSAL WHICH COULD BE PRESENTED TO GM'S BOARD MONDAY A BLUECOLLAR EARLY RETIREMENT PROGRAM HAS ATTRACTED INTEREST FROM SOME 20000 OF GM'S UNITED AUTO WORKERS UNION MEMBERS FAR MORE THAN GM OR UAW OFFICIALS EXPECTED MONDAY IS AN INITIAL DEADLINE TO FILE FOR THE PROGRAM THE SUCCESS OF THE EARLY RETIREMENT OFFER IS CRITICAL TO GM'S EFFORTS TO EASE LABOR TENSIONS AND REDUCE LABOR COSTS IN ADVANCE OF CONTRACT TALKS THIS FALL INDIVIDUALS FAMILIAR WITH TALKS BETWEEN GM AND TOYOTA MOTOR CORP SAID A PROPOSAL TO LET TOYOTA USE A GM FACTORY IN THE US TO PRODUCE A LARGE TOYOTA PICKUP HAS BEEN PUSHED TO A BACK BURNER GM EXECUTIVES ALSO ARE COOL TO THE IDEA OF SELLING TOYOTA A V8 TRUCK ENGINE BOTH MOVES MIGHT HELP GM REEMPLOY LAID OFF WORKERS BUT THEY ALSO COULD HELP TOYOTA UNDERMINE SALES OF GM'S HIGHLY PROFITABLE BIG PICKUP TRUCKS GM'S NATIONAL CAR RENTAL SYSTEMS UNIT ANNOUNCED IT HAS HIRED RESTRUCTURING SPECIALIST JAY ALIX TO THE NEW POST OF CHIEF TURNAROUND OFFICER THOMAS N MURPHY A FORMER GM EXECUTIVE WILL BECOME THE MINNEAPOLIS RENTAL CAR COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER GM WHICH OWNS 815 OF NATIONAL HAS SAID IT WILL TAKE A CHARGE OF ABOUT 300 MILLION TO RECOGNIZE LOSSES AT THE UNIT GM SAID LAST FALL IT ALSO MIGHT SELL PART OF ITS STAKE IN NATIONAL BUT A SPOKESMAN SAID GM NOW IS FOCUSING ON MAKING IT PROFITABLE AGAIN GM'S BOARD WILL MEET IN PHOENIX SUNDAY AND MONDAY FOR A WIDERANGING REVIEW OF THE COMPANY'S NORTH AMERICAN AUTO OPERATIONS AS PART OF THE BOARD'S REGULAR MONTHLY MEETING GM EXECUTIVES HAVE SAID THEIR COSTCUTTING EFFORTS ARE PRODUCING BETTERTHANEXPECTED RESULTS HOWEVER GM'S SALES HAVE SLUMPED BELOW EXPECTATIONS IN THE PAST FOUR MONTHS FORCING COSTLY PRODUCTION CUTS MR SMITH'S DECISION TO STEP DOWN FROM GM'S BOARD COMES IN THE WAKE OF AN ABORTIVE EFFORT BY OUTSIDE DIRECTORS TO SEEK HIS RESIGNATION LAST FALL MR SMITH HAS SAID HE LEFT GM WITH A STRONG BALANCE SHEET AND A SOLID BASE OF DIVERSIFIED EARNINGS WHEN HE RETIRED IN AUGUST 1990 BUT OUTSIDE DIRECTORS HAVE CONCLUDED THAT THE FORMER CHAIRMAN FAILED TO FACE UP TO PROFOUND PROBLEMS IN THE COMPANY'S NORTH AMERICAN OPERATIONS UNDERMINED GM'S BALANCE SHEET IN HIS DRIVE TO SUSTAIN REPORTED PROFITS AND THUS BEARS MUCH OF THE BLAME FOR THE COMPANY'S DISASTROUS 65 BILLION IN LOSSES DURING 1990 AND 1991 MR SMALE AND HIS ALLIES WANTED MR SMITH TO RESIGN NOV 2 ALONG WITH CHAIRMAN ROBERT C STEMPEL AND VICE CHAIRMAN ROBERT J SCHULTZ BOTH MANAGEMENT DIRECTORS BUT MR SMITH REBUFFED MR SMALE'S EMISSARIES ONE GM DIRECTOR SAID MR SMITH ACCORDING TO THIS DIRECTOR SAID HE WOULD STEP DOWN ONLY IF THE GM BOARD REVERSED ITS FEBRUARY DECISION TO CUT HIS 12 MILLION A YEAR PENSION BY 15 MR SMITH SAID YESTERDAY HE DID DISCUSS WHETHER TO STAY ON GM'S BOARD WITH FORMER GM CHAIRMEN THOMAS A MURPHY AND RICHARD GERSTENBERG AND WITH JOHN F SMITH JR GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO ISN'T RELATED TO ROGER SMITH BUT HE DENIED THAT HIS PENSION WAS AN ISSUE I DIDN'T LIKE THE WAY THEY LOWERED THE PENSION HE SAID BUT I DON'T HAVE A PRICE ON THIS DECISION TO STEP DOWN MR SMITH'S DECISION PROMPTED A TERSE TWOSENTENCE STATEMENT FROM PRESIDENT JOHN SMITH HE SAID ROGER SMITH MADE MANY IMPORTANT CONTRIBUTIONS TO THE COMPANY I RESPECT HIS DECISION TO DEVOTE MORE TIME TO HIS PERSONAL INTERESTS HE ADDED MR SMITH SAID HE'S ENDING HIS 19YEAR STINT ON GM'S BOARD AS PART OF AN OVERALL EFFORT TO SHIFT INTO A LOWER GEAR MR SMITH SAID HE FOUND HE WAS SPENDING TOO MANY NIGHTS IN HOTELS AND NOT ENOUGH NIGHTS AT HOME MR SMITH SAID HE ALSO WILL LEAVE HIS POST AS CHAIRMAN OF RUBATEX CORP A SMALL VIRGINIA RUBBER COMPANY HE BECAME INVOLVED WITH AS A MEMBER OF AEA INVESTORS A CLOSELY HELD INVESTMENT CLUB FOR RETIRED CEOS MR SMITH SAID HE'LL LEAVE THE BOARDS OF SEVERAL ARTS PUBLIC SERVICE AND EDUCATION ORGANIZATIONS INCLUDING THE PRESIDENT'S DRUG ADVISORY COUNCIL AND THE BOARD OF TRUSTEES OF THE KENNEDY CENTER FOR THE PERFORMING ARTS IN WASHINGTON MR SMITH SAID HE PLANS TO REMAIN ON THE BOARDS OF JOHNSON & JOHNSON PEPSICO CITICORP THE ALFRED P SLOAN FOUNDATION AND INTERNATIONAL PAPER CO 9301280174 930128 TECHNOLOGY & HEALTH SCIENCE PANEL SPLITS OVER CHEMICAL DOSE GIVEN TO ANIMALS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NATIONAL ACADEMY OF SCIENCES COMMITTEE IS SPLIT OVER THE USE OF TESTS THAT EXPOSE ANIMALS TO HUGE DOSES OF A CHEMICAL TO ASSESS WHETHER THE SUBSTANCE CAUSES CANCER IN A COMMITTEE REPORT 11 OF THE 17 MEMBERS RECOMMENDED THAT SUCH TESTS CONTINUE AS PART OF A BROADER EFFORT TO DETECT POSSIBLE CARCINOGENS BUT THE SIX OTHER COMMITTEE MEMBERS CALLED FOR A NEW APPROACH THAT WOULD MEASURE HOW LOWER CHEMICAL DOSES AFFECT ANIMAL PHYSIOLOGY AND HEALTH THE MINORITY MAINTAINS THAT ITS APPROACH COULD PROVIDE MORE GERMANE DATA BECAUSE HUMANS OFTEN INGEST CHEMICALS AT MODEST LEVELS THE COMMITTEE CHAIRMAN DR BERNARD GOLDSTEIN SAID THE PROBLEM WITH THE MINORITY'S APPROACH IS THAT THE SCIENCE ISN'T THERE YET ON A BROADER SCALE HOW BEST TO TEST FOR CANCERCAUSING AGENTS IS AN ISSUE THAT MAY NOT WAIT FOR ALL THE SCIENTISTS TO CONCUR THIS YEAR CONGRESS IS EXPECTED TO DEBATE FOOD SAFETY LAWS THAT BAR THE USE OF AN ADDITIVE IN FOOD THAT CAUSES CANCER IN LABORATORY ANIMALS INCLUDING THE SOCALLED DELANEY CLAUSE I HOPE A CAREFUL REVIEW OF THE REPORT WOULD SUGGEST THAT SOMETHING AS INFLEXIBLE AS THE DELANEY CLAUSE ISN'T VERY USEFUL SAID DR RICHARD REITZ A COMMITTEE MEMBER AND RESEARCH SCIENTIST AT DOW CHEMICAL CO THE FATE OF THE DELANEY CLAUSE IS UNCLEAR WHAT IS CLEAR THOUGH IS THAT THE CONTINUED USE OF TESTS EXPOSING ANIMALS TO MASSIVE AMOUNTS OF A CHEMICAL TO ASSESS IF THE CHEMICAL CAUSES CANCER FACES MOUNTING CHALLENGE FROM WITHIN THE SCIENTIFIC COMMUNITY AFTER THREE YEARS OF STUDY THE COMMITTEE MAJORITY WHICH RECOMMENDED THE CONTINUED USE OF THE CURRENT TESTS CONCEDED THAT THE ANIMAL TEST RESULTS DON'T PROVIDE ENOUGH DATA TO APPLY TO HUMANS DR GOLDSTEIN DIRECTOR OF THE NEW JERSEYBASED ENVIRONMENTAL AND OCCUPATIONAL HEALTH SCIENCES INSTITUTE PLAYED DOWN THE COMMITTEE'S SPLIT THE SHORTCOMINGS HAVE BEEN APPARENT FOR 20 YEARS IT IS POSSIBLE HE ADDED THAT ENOUGH DATA MAY BE GATHERED WITHIN A DECADE TO SUPPORT THE CHANGES FAVORED BY THE COMMITTEE MINORITY 9301280173 930128 LETTERS TO THE EDITOR RETIREE BENEFITS BIG CHANGES AHEAD ROBERT G RIPSTON'S ARTICLE WRONGHEADED HIT AT RETIREE BENEFITS EDITORIAL PAGE DEC 28 OFFERS THE IRONICALLY WELCOME NEWS THAT PRIMERICA HAS TERMINATED EMPLOYERSPONSORED HEALTHCARE BENEFITS FOR RETIRED EMPLOYEES AND THAT DOZENS MORE LARGE CORPORATIONS WILL PROBABLY ALSO DISCONTINUE COVERAGE OF FUTURE RETIREES AS THE FINANCIAL ACCOUNTING STANDARDS BOARD'S FASB NEW ACCOUNTING RULE 106 REQUIRING ACCRUAL OF ALL FUTURE HEALTHCARE COSTS GOES INTO EFFECT SINCE ERISA EMPLOYEE RETIREMENT INCOME SECURITY ACT FEDERALLY PREEMPTED STATE INSURANCE LAW PURVIEW OF SELFINSURED CORPORATE BENEFIT PLANS MANAGEDCARE MONEY MANAGERS HAVE ERODED MANY MIDDLECLASS EMPLOYEE BENEFITS RETURNING ANNUALLY AS INCOME TO THE CORPORATION SAVINGS GENERATED FROM PATIENT CARE MEDICARE'S UNHEALTHY PARTNERSHIP WITH THE CORPORATE PLANS HAS RESULTED ONLY IN COSTSHIFTING TO THE REST OF US SO PERHAPS THE RETIRED EMPLOYEES' FORCED ENTRY INTO THE COMMUNITYRATED MEDIGAP INSURANCE MARKET WOULD OFFER A RETURN TO STATEREGULATED INSURER RESPONSIBILITY TO BENEFICIARIES WE NOW HAVE A FOURTIER SYSTEM OF PRERETIREE HEALTH CARE THE HIGH OPTION HIGH PUBLIC COST MEDICAID SYSTEM THAT HEAVILY DISCOUNTS DOCTOR AND HOSPITAL FEES THE HEALTHMAINTENANCE ORGANIZATIONS THAT DEPEND FOR PROFITABILITY ON KICKBACK REWARDS FOR GATEKEEPERDOCTORS' LIMITING CARE THE CORPORATESPONSORED BENEFIT PLANS THAT PROMISE THEIR ONCEGREAT BENEFITS BUT UNDER COMMERCIAL MANAGED CARE PREFERRED PROVIDERS AND SUCH DELIVER MUCH LESS AND THE HIGH OPTION EXORBITANTLY PRICED INDIVIDUAL OR GROUP COMMUNITYRATED CONVENTIONAL INSURANCE TO WHICH BOTH CORPORATE AMERICA AND MEDICAID HAVE SHIFTED THE COSTS SINCE ABOUT 80 MILLION LARGEGROUP EMPLOYEES AND THEIR FAMILIES ARE IN EMPLOYERSPONSORED ERISA BENEFIT PLANS THE IDEA OF DUMPING THE RETIREES COULD CATCH ON WITH ACTIVE WORKERS LIKE WILDFIRE THE RETURN OF SIGNIFICANT NUMBERS OF SUCH ACTIVE EMPLOYEES TO THE ACTUARIAL POOL SHOULD ENABLE THE INSURANCE INDUSTRY TO LOWER ITS COMMUNITYRATED PREMIUMS TO THE LEVELS OF THE PREERISA ERA AS THE RISK IS SPREAD ADDING TO THIS THE 37 MILLION HEALTHY WORKING UNINSURED WOULD BROADEN THE INSURANCE BASE EVEN FURTHER THIS SHOULD BRING PRESIDENT CLINTON'S HEALTHCARE REFORM HOPES MUCH CLOSER TO FRUITION MR RIPSTON ASSERTS THAT THE NEW RULING WILL CAUSE HIGHER EXPENSES CONFUSION AND UNFAIR OUTCOMES HE IS PARTIALLY RIGHT BUT MOSTLY WRONG FASB 106 WILL IN FACT RESULT IN HIGHER REPORTED EXPENSES AND LIABILITIES FOR VIRTUALLY ALL COMPANIES PROVIDING POSTRETIREMENT BENEFITS HOWEVER THIS RESULT IS DUE TO THE FAULTY ACCOUNTING PRACTICES THAT EXISTED PRIOR TO FASB 106 WHEREBY CORPORATIONS REPORTED ABSOLUTELY NO LIABILITY FOR THE BENEFITS THEY HAVE PROMISED THEIR EMPLOYEES PROMISES TO MAKE THESE FUTURE PAYMENTS ARE AS VALID A LIABILITY AS THE PROMISE TO REPAY A BANK LOAN THE LIABILITY DOES EXIST I URGE MR RIPSTON NOT TO SHOOT THE MESSENGER HE CHARGES THAT CONFUSION WILL RESULT BECAUSE OF THE UNCERTAINTY SURROUNDING PROJECTIONS OF FUTURE HEALTHCARE COSTS THERE IS NO DOUBT THAT FASB 106 REQUIRES THE USE OF RELATIVELY SOFT ESTIMATES HOWEVER ISN'T IT BETTER TO BE VAGUELY RIGHT THAN PRECISELY WRONG THE TERMINATION OF POSTRETIREMENT BENEFITS IS THE UNFAIR OUTCOME TO WHICH MR RIPSTON REFERS FASB 106 IN NO WAY FORCES FIRMS TO TERMINATE PLANS ALTHOUGH BY REQUIRING THAT A LIABILITY BE REFLECTED ON THE BALANCE SHEET IT DOES CONTRIBUTE TO MANAGERS' MOTIVATIONS TO DO SO THE FASB ANTICIPATED THIS AND PROVIDED AN EXTENDED PHASEIN PERIOD FOR THE CATCHUP PROVISION MAKING FASB 106 A VILLAIN IN THE PLAY IS A CLASSIC CASE OF MISPLACED EMPHASIS GEE IF A BAD ACCOUNTING RULE CAN LEAD AMERICA TO THE POORHOUSE WHY NOT ENCOURAGE THE FASB TO PASS A FEW GOOD ONES TO MAKE US ALL RICH 9301280172 930128 LETTERS TO THE EDITOR SUPPLY OF LAWYERS OUTSTRIPS THE MARKET THE GRUDGING RESPONSE TO TOTAL QUALITY MANAGEMENT TQM DESCRIBED IN YOUR DEC 2 ARTICLE GRUDGINGLY LAWYERS TRY TOTAL QUALITY' PLACES LAWYERS WHERE DOCTORS WERE FIVE OR SIX YEARS AGO THE PARALLEL IS OBVIOUS DELIVERY OF MEDICINE OFTEN DEPENDS UPON THE PERFORMANCE OF ONE DOCTOR BUT MEDICAL SUCCESS DEPENDS ON THE QUALITY OF A SUPPORTING CAST WITH ITS PROCESSES SYSTEMS AND TEAMWORK MEASURED RESULTS FROM HOSPITALS HMOS AND OTHER HEALTH ORGANIZATIONS PROVE THAT TOTAL QUALITY DELIVERS COMMONLY WITH A COSTSAVING FACTOR OF SIX IN THE LEGAL PROFESSION WE ARE NOW SEEING THE PERCENTAGE OF CONTESTED LEGAL BILLS RISING PARTNERS FIRED OR LEAVING AND 20 LARGE LAW FIRMS CLOSING THE SUPPLY OF LAWYERS HAS OUTSTRIPPED THE MARKET IF THAT WEREN'T WARNING ENOUGH CONSIDER THAT CORPORATE LEGAL STAFFS ARE SLIMMING DOWN AND HOUSE COUNSEL NOW EXPECT LAW FIRMS TO USE TQM FEW LAW FIRMS CAN AFFORD TO IGNORE THE COSTS OF POOR CYCLE TIMES ERRORS AND DELAYS LIKE RAP MUSIC TQM IS HERE TO STAY AND IN OUR EXPERIENCE LAW FIRMS LOOKING TO PROSPER IN THESE NEW MARKETDRIVEN TIMES ARE LISTENING AS A SOLO LEGAL PRACTITIONER FOR MORE THAN 30 YEARS IT HAS BEEN MY ACUTE EXPERIENCE THAT CLIENTS EXPECT QUALITY AND JUDGE QUALITY BY RESULTS IT HAS ALSO BEEN MY EXPERIENCE THAT SOLO PRACTITIONERS OR SMALL FIRMS ARE RESULTORIENTED WHEREAS LARGER FIRMS ARE PROCESSORIENTED IT IS A BLACK JOKE AMONG ATTORNEYS THAT BIG FIRMS ARE PAID BY THE POUND OF THE FILE AND SMALL FIRMS OR SOLE PRACTITIONERS ARE PAID BY RESULTS THEREFORE RATHER THAN TQM BEING AN INTELLECTUAL EXERCISE I SUGGEST THAT THE BIG FIRMS ALL ENROLL IN WEIGHT WATCHERS ANONYMOUS 9301280170 930128 INTERNATIONAL KLM IS CONSIDERING ALLYING WITH SWISSAIR SAS AND AUSTRIAN AIR SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM HUNGRY FOR MARKET SHARE AND PARTNERS DUTCH AIRLINE KLM IS CONSIDERING JOINING FORCES WITH SWISSAIR AUSTRIAN AIRLINES AND SCANDINAVIAN AIRLINES SYSTEM IN A TERSE JOINT STATEMENT THE FOUR AIRLINES SAID THEY ARE INFORMALLY INVESTIGATING SOME FORM OF STRATEGIC COOPERATION THE COMPANIES SAID THEY WOULD MAKE NO FURTHER COMMENT UNTIL THEIR INVESTIGATION IS COMPLETE PROBABLY IN SEVERAL MONTHS SAS SWISSAIR AND AUSTRIAN ALREADY FORM THE EUROPEAN QUALITY ALLIANCE WHICH SEEKS TO CUT COSTS BY TEAMING UP FOR SUCH ACTIVITIES AS PURCHASING MARKETING AND CHECKIN PROCEDURES THE MAIN GOAL OF THE TALKS IS FOR KLM TO JOIN THE ALLIANCE A SWISSAIR SPOKESMAN SAID THE SWISSAIR SPOKESMAN ADDED THAT IT ISN'T YET KNOWN WHETHER POSSIBLE COOPERATION WITH KLM WOULD INVOLVE A SHARE SWAP SWISSAIR CURRENTLY OWNS A 10 STAKE IN AUSTRIAN AIRLINES BUT DOESN'T HAVE A STAKE IN SAS WHICH IS 50OWNED BY THE SWEDISH DANISH AND NORWEGIAN GOVERNMENTS THE 382 STATEOWNED AIRLINE HAS BEEN STRUGGLING WITH DECLINING EARNINGS CAUSED BY INCREASED COMPETITION A STRONG GUILDER AND FIERCE FARE WARS THE CARRIER HAS ALREADY SAID IT EXPECTS TO POST A LOSS FOR THE FISCAL YEAR ENDING MARCH 31 IN ITS FISCAL SECOND QUARTER KLM'S PROFIT DROPPED 12 TO 1701 MILLION GUILDERS 958 MILLION ON REVENUE OF 229 BILLION GUILDERS 9301280169 930128 ECONOMY CLINTON'S AIDES MULL VIABILITY OF COLA LIMIT SOCIAL SECURITY PROPOSALS AIM TO REDUCE DEFICIT RISKS TO ELDERLY SEEN BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC ADVISERS ARE CONSIDERING PROPOSALS TO LIMIT COSTOFLIVING INCREASES FOR SOCIAL SECURITY AND GOVERNMENT RETIREMENT BENEFITS TO HELP REDUCE THE FEDERAL DEFICIT IT IS DEFINITELY UNDER CONSIDERATION ONE TOP ADMINISTRATION OFFICIAL SAID OFFICIALS EMPHASIZED THAT THE PRESIDENT HASN'T MADE ANY FINAL DECISIONS AND THAT TRIMMING THE ANNUAL COSTOFLIVING ADJUSTMENTS OR COLAS IS ONE OF SEVERAL MONEYSAVING OPTIONS THE IDEA HAS BEEN THROWN ON THE TABLE WITH A LOT OF OTHER STUFF SAID ONE SENIOR WHITE HOUSE AIDE CONGRESSIONAL BUDGET OFFICE ESTIMATES SHOW THAT SKIPPING THE COSTOFLIVING ADJUSTMENTS FOR ONE YEAR WOULD SAVE THE GOVERNMENT ABOUT 10 BILLION MAKING ADJUSTMENTS A PERCENTAGE POINT LESS THAN THE INFLATION RATE WOULD SAVE ABOUT 35 BILLION A YEAR AND COST THE TYPICAL SOCIAL SECURITY BENEFICIARY ABOUT 78 A YEAR ALTHOUGH ANY ATTEMPT TO TINKER WITH SOCIAL SECURITY WOULD BE POLITICALLY RISKY MR CLINTON HAS PLEDGED TO REQUIRE SACRIFICE OF EVERYONE MOST SPENDING CUTS OTHER THAN THOSE IN DEFENSE SPENDING WOULD HAVE TO COME FROM VARIOUS GOVERNMENT BENEFIT PROGRAMS AND THAT MEANS REDUCING BENEFITS PAID TO THE ELDERLY SINCE THEY ARE THE MAIN BENEFICIARIES BUDGET ANALYSTS SAID MR CLINTON ESSENTIALLY HAS THREE CHOICES MAKE THE ELDERLY PAY MORE FOR THEIR MEDICARE HEALTH INSURANCE LIMIT COLAS OR INCREASE THE FRACTION OF SOCIAL SECURITY BENEFITS SUBJECT TO INCOME TAX MANY DEMOCRATS AND SOME ADMINISTRATION OFFICIALS PREFER THE THIRD OPTION BECAUSE IT WOULD CONCENTRATE THE HARDSHIP ON UPPERINCOME ELDERLY CURRENTLY 50 OF SOCIAL SECURITY BENEFITS PAID TO INDIVIDUALS WITH INCOMES OVER 25000 AND TO COUPLES WITH INCOMES OVER 32000 ARE SUBJECT TO TAXATION SUBJECTING 85 OF THE BENEFITS TO TAXATION WOULD RAISE ABOUT 6 BILLION MORE A YEAR ANALYSTS SAY THAT WITH SUCH A CHANGE THE TAX TREATMENT OF SOCIAL SECURITY WOULD BECOME MORE COMPARABLE TO THAT OF PRIVATE PENSIONS BUDGET TECHNICIANS ARGUE THAT INCREASING THE PORTION OF SOCIAL SECURITY BENEFITS SUBJECT TO TAX WOULD BE CONSIDERED A SPENDING CUT BECAUSE IT EFFECTIVELY WOULD REDUCE THE AMOUNT OF SOCIAL SECURITY BENEFITS PAID OUT BUT IN REALITY IT WOULD BE DIFFICULT TO DESCRIBE TO THE PUBLIC AS ANYTHING OTHER THAN A TAX INCREASE BUDGET DIRECTOR LEON PANETTA HAS SAID THAT THE ADMINISTRATION IS AIMING TO CUT SPENDING BY 2 FOR EVERY 1 OF TAX INCREASES AS A CONGRESSMAN MR PANETTA SOMETIMES ARGUED THAT ACROSSTHEBOARD REDUCTIONS IN COLAS OR FREEZES WERE THE EASIEST KIND OF SPENDING REDUCTIONS TO SELL POLITICALLY MOST PROPOSALS TO LIMIT COLAS WOULD APPLY NOT ONLY TO SOCIAL SECURITY BUT ALSO TO BENEFITS PAID TO RETIRED MILITARY AND CIVILIAN GOVERNMENT EMPLOYEES THE PROPOSALS ARE ATTRACTIVE BECAUSE THEY COULD SAVE SUBSTANTIAL SUMS BY TAKING RELATIVELY LITTLE FROM A LARGE NUMBER OF PEOPLE THE PRIMARY OBJECTION TO SUCH PROPOSALS SAID JOHN ROTHER LEGISLATIVE DIRECTOR FOR THE AMERICAN ASSOCIATION OF RETIRED PEOPLE IS THAT COLA REDUCTIONS DISADVANTAGE THOSE WHO ARE MOST RELIANT ON SOCIAL SECURITY ELDERLY HOUSEHOLDS LIVING BELOW THE POVERTY LINE GET ABOUT 70 OF THEIR CASH INCOME FROM SOCIAL SECURITY BENEFITS A ONEYEAR COLA FREEZE I DON'T THINK OFFENDS ANYONE A WHOLE LOT SAID CAROL COX WAIT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET BUT SKIPPING OR LIMITING COLAS FOR SEVERAL YEARS SUBSTANTIALLY ERODES THE PURCHASING POWER OF BENEFITS SHE SAID THAT WOULD BE PARTICULARLY TOUGH FOR THE POOREST OF THE ELDERLY ONE POLITICAL PROBLEM WITH CUTTING SOCIAL SECURITY BENEFITS IS THAT THE SOCIAL SECURITY SYSTEM IS RUNNING A SURPLUS THAT IS PAYROLL TAXES PAID BY CURRENT WORKERS EXCEED BENEFITS PAID TO THE ELDERLY CONTRARY TO POPULAR BELIEF CURRENT RETIREES WILL RECEIVE MORE IN SOCIAL SECURITY BENEFITS THAN THEY PAID INTO THE SYSTEM ACCORDING TO THE HOUSE WAYS AND MEANS COMMITTEE THE AVERAGE MALE WAGE EARNER WHO RETIRED IN 1991 WITH A TYPICAL LIFE EXPECTANCY WILL RECEIVE 60 MORE THAN HE PAID INTO THE SYSTEM THE BESTPAID WORKERS WILL RECEIVE 27 MORE SOCIAL SECURITY BENEFITS ARE ADJUSTED ONCE A YEAR FOR INFLATION IN 1983 THE GOVERNMENT DELAYED A COLA FOR SIX MONTHS TO SHORE UP THE SOCIAL SECURITY TRUST FUND 9301280168 930128 TECHNOLOGY & HEALTH NEC SCIENTISTS FIND LINK TO PRODUCING THIN WIRE FIBERS BUCKYBALL MOLECULES STRETCHED INTO TUBES SUCKED UP LEAD LIKE MICROSCOPIC STRAWS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SCIENTISTS AT NEC CORP SAY THEY HAVE MADE MICROSCOPIC STRAWS AND USED THEM TO SUCK UP MOLTEN LEAD AN ADVANCE THAT COULD ONE DAY LEAD TO ULTRATHIN WIRES SUPERSTRONG COMPOSITE FIBERS AND POSSIBLY EVEN TINY BATTERIES THE NEW RESULTS ARE THE LATEST CHAPTER IN THE SAGA OF SOCALLED BUCKYBALLS CAGELIKE MOLECULES OF CARBON FORMALLY KNOWN AS BUCKMINSTERFULLERENE BECAUSE THEY RESEMBLE THE FAMED GEODESIC DOMES OF US ENGINEER BUCKMINSTER FULLER SINCE A TEAM OF GERMAN AND US SCIENTISTS DISCOVERED IN LATE 1990 HOW TO MAKE BUCKYBALLS IN QUANTITY SCIENTISTS HAVE BEEN CAPTIVATED BY THE LITTLE SPHERES AND THEIR MANY ODD PROPERTIES WITHIN THE PAST FEW YEARS RESEARCHERS HAVE MADE BUCKYBALLS CONDUCT ELECTRICITY WITHOUT RESISTANCE WRAPPED THEM AROUND METAL CRYSTALS AND STRETCHED THEM INTO TINY HOLLOW BUCKYTUBES BUCKYTUBES IN PARTICULAR HAVE INTRIGUED RESEARCHERS BECAUSE THEY MIGHT SERVE AS A MOLD FOR FINE WIRES IF ONLY SCIENTISTS COULD FIGURE OUT A WAY TO GET LIQUID METAL INSIDE SUCH FIBERS COULD ALSO HAVE TREMENDOUS TENSILE STRENGTH BUT THE PROCESS OF MANUFACTURING BUCKYTUBES HAD ALWAYS PRODUCED TUBES THAT ARE SEALED AT THE ENDS MAKING IT DIFFICULT TO FORM THE WIRES IN THE FIRST PLACE ENTER PHYSICISTS PULICKEL AJAYAN AND SUMIO IIJIMA OF NEC'S FUNDAMENTAL RESEARCH LABORATORIES THEY HAVE DEVISED A WAY NOT ONLY OF OPENING UP BUCKYTUBES BUT OF ENCOURAGING THEM TO SUCK UP LIQUID LEAD IN EFFECT USING THEM AS MICROSCOPIC DRINKING STRAWS THEY REPORT THEIR RESEARCH IN TODAY'S ISSUE OF THE JOURNAL NATURE THE PHYSICISTS STARTED WITH A JUMBLE OF BUCKYTUBES WHICH GROW UNDER SPECIAL ATMOSPHERIC CONDITIONS WHEN A SPARK IS PASSED BETWEEN TWO CARBONBASED ELECTRODES AFTER DEPOSITING A THIN LAYER OF LEAD OVER THE BUCKYTUBE HEAP MESSRS AJAYAN AND IIJIMA PUT THE RESULTING SAMPLE IN AN OVEN AND HEATED IT ABOVE LEAD'S MELTING POINT FOR 30 MINUTES WHEN THEY LATER EXAMINED THE SAMPLE WITH AN ELECTRON MICROSCOPE THE SCIENTISTS FOUND THAT THE ENDS OF SOME BUCKYTUBES HAD SPLIT OPEN WHAT'S MORE WHEN THE LEAD MELTED A STRONG SUCTION DEVELOPED IN THE MOUTH OF THE TUBE DRAWING SOME OF THE LEAD INSIDE THEORETICIANS HAD PREDICTED THAT IF YOU BRING SOME MOLTEN MATERIAL TO THE MOUTH OF AN OPEN TUBE THAT IT WOULD BE SUCKED INSIDE AND THAT'S ESSENTIALLY WHAT WE'VE SEEN SAYS DR AJAYAN SUCH CAPILLARY FORCES ARE SIMILAR TO THE FORCES THAT DRAW WATER UP FROM A PLANT'S ROOTS TO ITS LEAVES AND STALKS 9301280166 930128 TECHNOLOGY NEW ENGLAND RETAILERS ARE FACING EPA FINES FOR ILLEGAL FREON SALES BOSTON THE ENVIRONMENTAL PROTECTION AGENCY SAID IT PROPOSED FINES AGAINST 12 NEW ENGLAND RETAILERS FOR ILLEGALLY SELLING FREON FOR AUTO AIR CONDITIONERS THE FINES WOULD BE THE FIRST ENFORCEMENT ACTION RELATED TO SUCH SALES UNDER THE FEDERAL CLEAN AIR ACT SALES TO CONSUMERS OF SMALL CONTAINERS OF REFRIGERANTS CONTAINING CHLOROFLUOROCARBONS OR CFCS WERE BANNED AS OF NOV 15 THE CHEMICALS INCLUDING CFC12 WHICH IS COMMONLY CALLED FREON STILL CAN BE SOLD TO TECHNICIANS CERTIFIED TO OPERATE CFC RECYCLING MACHINES CFCS ARE BEING PHASED OUT BECAUSE OF THE THREAT THEY POSE TO THE EARTH'S OZONE LAYER A THIN STRATOSPHERIC SKIN THAT BLOCKS THE SUN'S HARMFUL ULTRAVIOLET RAYS A FEDERAL BAN ON MAKING CFCS WILL TAKE EFFECT AT THE END OF 1995 AUTOMOBILE AIR CONDITIONERS REPRESENT A MAJOR SOURCE OF CFCS RELEASED INTO THE ATMOSPHERE THE CHEMICALS TEND TO LEAK OUT THE SYSTEMS AS THEY AGE AND OFTEN HAVE BEEN RELEASED WHEN AIR CONDITIONERS ARE RECHARGED WITH FREON THE 12 RETAILERS THAT ALLEGEDLY SOLD CFCS ILLEGALLY ARE INDEPENDENT AUTOMOTIVE PARTS AND HARDWARE STORES IN MASSACHUSETTS NEW HAMPSHIRE AND RHODE ISLAND THE EPA SAID IT HAS PROPOSED FINES RANGING FROM 7021 TO 30051 AGAINST EACH CONCERN BASED ON THE NUMBER OF VIOLATIONS AND OTHER FACTORS THE RETAILERS WILL HAVE AN OPPORTUNITY TO CONFER WITH THE EPA REGARDING THE VIOLATIONS AND THE AMOUNT OF THE PENALTY THE AGENCY ADDED I HADN'T BEEN SELLING FREON ASSERTED GEORGE MCMANUS OWNER OF M & S AUTO PARTS INC FITCHBURG MASS ONE OF THE AUTO PARTS STORES NAMED BY THE EPA BUT A MAN CAME IN AND SAID HE WAS HAVING TROUBLE WITH HIS CAR'S AIR CONDITIONER AND WITHOUT THINKING I GAVE HIM A CAN IT WAS A STUPID THING HE TURNED OUT TO BE A FEDERAL MAN MR MCMANUS ADDED THAT THE 12021 FINE PROPOSED BY THE EPA AGAINST HIS STORE IS RIDICULOUS FRANK ALLISON A SPOKESMAN FOR THE INTERNATIONAL MOBILE AIR CONDITIONING ASSOCIATION FORT WORTH TEXAS SAID THAT AS WARM WEATHER HITS THIS YEAR MANY AUTO PARTS DEALERS ARE GOING TO CATCH WRATH FROM CONSUMERS WANTING TO BUY CANS OF FREON MANY OF THEM HE ADDED AREN'T AWARE OF THE BAN ON SALES OF THE CANS AND ARE USED TO RECHARGING THEIR AUTO AIR CONDITIONERS WITH FREON LIKE PUMPING AIR INTO LEAKY TIRES 9301280165 930128 INTERNATIONAL ITALIAN WAGES INCH UP ROME AVERAGE HOURLY WAGES IN ITALY ROSE 02 IN DECEMBER FROM NOVEMBER AND WERE UP 22 FROM A YEAR EARLIER THE STATE STATISTICS BUREAU ISTAT SAID THE YEARONYEAR INCREASE COMPARED WITH A YEARONYEAR INFLATION RATE OF 48 AND SHOWED A SUBSTANTIAL MODERATION IN ITALIAN WAGE INCREASES OVER THE PAST 12 MONTHS GOVERNMENT POLICY HAS SOUGHT TO HOLD WAGE INCREASES TO THE INFLATION RATE 9301280164 930128 BUSINESS BRIEF PHILIP MORRIS NET ROSE 56 IN QUARTER BUT SOME BUSINESSES STILL FACE PRESSURE NEW YORK PHILIP MORRIS COS POSTED A 56 INCREASE IN FOURTHQUARTER PROFIT FROM A YEAR EARLIER WHEN RESULTS WERE HELD DOWN BY A BIG ONETIME CHARGE EXCLUDING THE CHARGE PROFIT WAS UP 15 ON A SOLID 89 RISE IN REVENUE STILL SOME OF PHILIP MORRIS'S KEY BUSINESSES REMAIN UNDER PRESSURE SALES AT ITS KEY DOMESTIC TOBACCO BUSINESS UNDER ATTACK FROM CHEAP CIGARETTES FELL 32 IN THE QUARTER AND SHIPMENTS OF THE FLAGSHIP MARLBORO BRAND WERE OFF AN UNPRECEDENTED 56 FOR THE FULL YEAR MILLER BREWING CO'S OPERATING PROFITS FELL 61 IN THE QUARTER BUT QUARTERLY PROFITS WERE UP A HEALTHY 13 AT KRAFT GENERAL FOODS INTERNATIONAL FOOD AND TOBACCO PROFITS CLIMBED SHARPLY PHILIP MORRIS HAS LOST NEARLY 15 OF ITS STOCK MARKET VALUE SINCE SEPTEMBER AS INVESTORS GREW CONCERNED OVER THE COMPANY'S GROWTH PROSPECTS YESTERDAY THE STOCK CLOSED AT 7475 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY POSTED FOURTHQUARTER NET OF 19 BILLION OR 134 A SHARE UP FROM 767 MILLION OR 83 CENTS A SHARE A YEAR AGO WHEN RESULTS WERE HURT BY A 275 MILLION RESTRUCTURING CHARGE SALES ROSE TO 1492 BILLION FROM 1370 BILLION THE FOURTHQUARTER REPORT PROMPTED ONE BULLISH ANALYST S LEIGH FERST OF PRUDENTIAL SECURITIES INC TO REDUCE HER 1993 EARNINGS FORECAST BY FIVE CENTS A SHARE TO 645 A SHARE SHE DID SO EVEN THOUGH SHE BELIEVES PHILIP MORRIS'S STRONG PROSPECTS OVERSEAS BODE WELL FOR THE COMPANY HUGH ZURKUHLEN AN ANALYST AT MONEY MANAGER WEISS PECK & GREER IN NEW YORK SAID ON AN OPERATING BASIS THERE ARE STILL PRESSURES ON THE BIG MARKETER THIS YEAR IS A CRITICAL YEAR FOR PHILIP MORRIS ADDED GARY BLACK OF STANFORD C BERNSTEIN & CO CHEAP CIGARETTES WILL CONTINUE TO EAT AWAY AT THE PROFITABLE MARLBORO FRANCHISE HE CONTENDS PHILIP MORRIS HAD RECORD 1992 RESULTS EXCLUDING THE 1991 CHARGES THE COMPANY'S EARNINGS ROSE 18 TO 49 BILLION FROM 42 BILLION A YEAR EARLIER AND PERSHARE EARNINGS ROSE 20 TO 545 FROM 454 IN 1991 THE COMPANY SAID SALES MOMENTUM IS PICKING UP AND THAT THE PRICE GAP BETWEEN DISCOUNT CIGARETTE BRANDS AND THE COMPANY'S PREMIUM BRANDS IS NARROWING 9301280163 930128 LETTERS TO THE EDITOR YOU WON'T EVEN NOTICE A TAX ON GASOLINE THERE YOU GO AGAIN BASHING AN INCREASE IN THE GASOLINE TAX SAYING THAT PERHAPS BILL CLINTON THINKS EVERY AMERICAN WHO DRIVES A CAR IS RICH' PAUL A GIGOT'S JAN 15 POTOMAC WATCH COLUMN LOTS OF OLD MUCH LESS NEW IN CLINTON STEW EDITORIAL PAGE HAVE YOU EVER BOTHERED TO CRUNCH THE NUMBERS ASSOCIATED WITH THE PROPOSED GAS TAX INCREASES LET'S ASSUME THAT AN INCREASE OF 10 CENTS A GALLON A YEAR IS ENACTED IF YOU DRIVE A CAR 25000 MILES A YEAR WHICH MANY OF US DO AND THE CAR GETS 25 MILES A GALLON YOU BUY 1000 GALLONS OF GAS A YEAR PAYING 10 CENTS MORE MEANS PAYING 100 A YEAR 833 A MONTH MORE FOR GAS FOR THE VAST VAST MAJORITY OF AMERICANS I CLAIM THIS IS A NONBURDENING INSIGNIFICANT INCONSEQUENTIAL AMOUNT EASILY TAKEN CARE OF BY A SLIGHT REDUCTION IN SNACKING MR GIGOT SEEMS TO BE WAY OFFBASE TO CLAIM YOU HAVE TO BE RICH TO AFFORD SUCH AN AMOUNT WHEN ONE CONSIDERS THAT SUCH A TAX MAY HAVE LONGTERM BENEFICIAL EFFECTS SUCH AS PRODUCING A MARKET THRUST TOWARD MORE FUELEFFICIENT CARS LESS POLLUTION AS WELL AS FRUGALITY IN THEIR USE INCREASING THE GAS TAX BECOMES DOWNRIGHT REASONABLE I WOULD HOPE THAT IF SUCH A TAX INCREASE IS ENACTED IT BE EARMARKED IN AN IRONCLAD FASHION FOR TWO PURPOSES HIGHWAY REFURBISHMENT AND REDUCTION OF THE NATIONAL DEBT DEEP DOWN I SUSPECT THAT RELUCTANCE TO ENACT ANY LEGISLATION THAT WOULD REDUCE GASOLINE CONSUMPTION IN THIS COUNTRY IS TIED TO THE OIL LOBBY INTERNATIONAL MONEY INTERESTS ROTTEN CAMPAIGN FINANCING AND WEAPONS INCREASING THE GAS TAX IS A WAY OF RAISING SIGNIFICANT EASY MONEY THAT COULD BE USED FOR SOLID NATIONAL BENEFIT THAT THIS TAX REQUIRES YOU TO BE RICH OR WOULD BE DEVASTATING IS JUST A SMOKE SCREEN THROWN UP BY PEOPLE MAINLY INTERESTED IN KEEPING FOREIGN OIL FLOWING 9301280162 930115 POTOMAC WATCH LOTS OF OLD MUCH LESS NEW IN CLINTON STEW BY PAUL A GIGOT BILL CLINTON SAYS HE'S MODELED HIS TRANSITION AFTER RONALD REAGAN'S AND A CORE REAGAN DICTUM WAS THAT PERSONNEL IS POLICY SO PERHAPS THERE'S A WARNING IN THE ECLIPSE OF BOTH ROBERT SHAPIRO AND THE MIDDLECLASS TAX CUT MR SHAPIRO HELPED DEVISE THE TAX CUT FOR CANDIDATE CLINTON HIS PURPOSE WAS NOT THE USUAL KEYNESIAN STIMULUS BUT TO BLUNT PUBLIC PERCEPTIONS THAT THE ARKANSAN WAS ANOTHER TAX AND SPEND DEMOCRAT HE'D ALSO WHISPER TO FREEMARKETEERS THAT MR CLINTON FAVORED THE HERESY OF INDEXING CAPITAL GAINS FOR INFLATION IT WORKED NOW THOUGH BOTH SEEM TO HAVE OUTLIVED THEIR USEFULNESS MR SHAPIRO OMNIPRESENT DURING THE CAMPAIGN HAS YET TO RECEIVE A JOB AND SPENT THIS PREINAUGURAL WEEK IN EUROPE MEANWHILE THE CANDIDATE OF CHANGE HAS CHANGED HIS MIND ABOUT EASING TAXES ON THE MIDDLE CLASS HE IS HINTING INSTEAD THAT HE'LL RAISE TAXES ON GASOLINE PERHAPS HE THINKS EVERY AMERICAN WHO DRIVES A CAR IS RICH THE TEAM THAT SEEMS TO BE EVOLVING AS CENTRAL TO THE ADMINISTRATION DOESN'T KNOW MOST OF US SAYS DOUG ROSS AN ORIGINAL CLINTON NEODEM MR ROSS HASN'T BEEN INVITED TO WASHINGTON FROM HIS HOME IN MICHIGAN EITHER THE EMERGING CLINTON TEAM MAY BE DIVERSE IN GENDER AND COLOR BUT PERHAPS NOT DIVERSE ENOUGH IN THE THINKERS ASSOCIATED WITH THE IDEAS THAT MADE MR CLINTON A DIFFERENT KIND OF DEMOCRAT AL FROM'S DEMOCRATIC LEADERSHIP COUNCIL HAS SO FAR BEEN MOSTLY SHUT OUT THE CLINTON GOVERNMENT IS LOOKING LESS LIKE AMERICA AND MORE LIKE THE INTEREST GROUPS AND CONGRESSTYPES OF THE OLD DEMOCRATIC PARTY THE CABINET MAY HAVE REQUIRED SUCH NOMINEES BUT EVEN THE SUBCABINET IS FILLING WITH THE USUAL SUSPECTS WENDELL PRIMUS IS A SMART 15YEAR VETERAN OF CAPITOL HILL WHO EACH YEAR TURNS OUT THE NOTORIOUS GREEN BOOK THAT PURPORTS TO SHOW THE US IS BECOMING A NATION DIVIDED BETWEEN PAUPERS AND ROBBER BARONS ROBERT GREENSTEIN IS A SAVVY RELENTLESS PUBLIC INTEREST LOBBYIST WHO THINKS A NEW IDEA IS ANY FEDERAL PROGRAM THAT IS FULLY FUNDED STUART ALTMAN IS A NIXONERA PRICECONTROLLER WHO FAVORS A CAP ON HEALTHCARE SPENDING THAT WOULD PRODUCE RATIONING THAT MR CLINTON SAYS HE DOESN'T WANT YET ALL THREE ARE LEADING CONTENDERS FOR JOBS THAT WOULD OVERSEE SUCH CLINTON PROMISES AS HEALTHCARE AND WELFARE REFORM THEY WOULD QUALIFY AS NEW DEMOCRATS ONLY BY THE MIRACLE OF TRANSFIGURATION AT STATE THE FRONTRUNNER FOR THE HUMAN RIGHTS POST IS ED FEIGHAN A FORMER DEMOCRATIC CONGRESSMAN WHO OPPOSED THE GULF WAR AND IS BEST KNOWN FOR LOUDLY ATTACKING THE REAGANITE QUIET DIPLOMACY THAT HELPED BRING DEMOCRACY TO SOUTH KOREA THE CONTENDERS FOR THE LATIN AMERICA REGIONAL JOB INCLUDE CARTERERA OFFICIALS WHO TREATED THE SANDINISTAS LIKE CHARMING IDEALISTS AND SO ON A FEW BELTWAY SAGES SEE IN ALL THIS A SIGN OF MR CLINTON'S POLITICAL GENIUS UNLIKE JIMMY CARTER WHO LOST HIS LIBERAL PARTY BASE AND LATER THE PRESIDENCY MR CLINTON IS SAID TO BE ENSURING THAT EVERYONE IS ON BOARD FROM THE START THEN HE CAN TAKE EVEN THE LIBERALS WITH HIM AS HE CHANGES THE PARTY MAYBE BUT ANOTHER REAGAN DICTUM WAS TO CHOOSE NOMINEES WHO SHARED A POINT OF VIEW SO THEY COULD BE TRUSTED TO CARRY OUT PLANS WITHOUT OVAL OFFICE MICROMANAGEMENT MR CLINTON SEEMS TO BELIEVE THAT HE AND HILLARY WHO IS MORE AND MORE A DOMESTICPOLICY COPRESIDENT CAN MEDDLE IN ENOUGH PLACES TO PREVENT HIS BIG DEMOCRATIC TENT FROM TURNING INTO A CIRCUS HE MAY FIND THE PLACID POND OF LITTLE ROCK EASIER TO CONTROL THAN THE BOILING STEW POT OF WASHINGTON ESPECIALLY SINCE MR CLINTON'S WHITE HOUSE STAFF ITSELF HAS VERY FEW NEW DEMOCRATS BRUCE REED WHO WAS MR CLINTON'S ALTER EGO FOR POLICY DURING THE CAMPAIGN LOST THE CHIEF DOMESTICPOLICY JOB BECAUSE HIS DIVERSITY IS BASED ON INTELLECT NOT GENDER HE'LL NOW BE JOINED AS A DEPUTY BY THE WISE WILLIAM GALSTON ANOTHER FREETHINKER BUT THEY WILL BE SURROUNDED IN THE WHITE HOUSE BY MANY POLITICAL AND CAPITOL HILL REFUGEES WHO UNDERSTAND NEW DEMOCRAT MORE AS A SLOGAN THAN AS A SUBSTANTIVE AGENDA TO REINVENT GOVERNMENT THEY RUN THE RISK OF BEING PINKERTONED LEFT FREE TO THINK ON THEIR OWN HUMORED SOMETIMES BUT ULTIMATELY IGNORED THE WAY JIM PINKERTON WAS IN THE BUSH WHITE HOUSE AT LEAST THEY AND MR CLINTON DODGED A BULLET WHEN PRESSURE FROM MANY SOURCES INDUCED LABOR LAWYER AND PREHISTORIC DEMOCRAT HAROLD ICKES TO DROP OUT AS DEPUTY CHIEF OF STAFF MEANTIME THE FICKLE AFFECTION OF OLD DEMOCRATS IS APPARENT IN ZOE BAIRD'S NEW TROUBLES THE FIRST FEMALE ATTORNEY GENERALDESIGNATE WAS INITIALLY HAILED AS A TRIUMPH OF DIVERSITY THEN IT CAME OUT SHE HAD SUPPORTED DAN QUAYLE'S LEGAL REFORMS AND REPRESENTED EGAD BUSINESS INTERESTS SO SENATE LIBERALS BEGAN TO GET EDGY AND SUDDENLY A STORY APPEARED THAT SHE HAD HIRED ILLEGAL ALIENS AS DOMESTICS MS BAIRD MAY SURVIVE BUT SHE HAS BEEN DULY WARNED ABOUT TOO MUCH INDEPENDENT THINKING OR MR CLINTON COULD DECIDE TO LET HAITIANS IMMIGRATE AFTER ALL TO WORK AS DOMESTICS FOR THE ENTIRE CABINET IN BUILDING HIS ADMINISTRATION MR CLINTON HAS DECIDED IT IS WISE TO CLUTCH THE PARTY ESTABLISHMENT CLOSE LET'S HOPE IT'S NOT A SUICIDE EMBRACE SEE RELATED LETTER LETTERS TO THE EDITOR YOU WON'T EVEN NOTICE A TAX ON GASOLINE WSJ JAN 28 1993 9301150106 9301280161 930128 INTERNATIONAL TELEFONICA'S 1992 PROFIT ROSE MADRID SPANISH TELECOMMUNICATIONS COMPANY TELEFONICA SA REPORTED THAT UNCONSOLIDATED NET INCOME ROSE 38 FOR 1992 TO 8389 BILLION PESETAS 7511 MILLION FROM 8090 BILLION PESETAS A YEAR EARLIER ACCORDING TO PROVISIONAL DATA THE STATECONTROLLED MONOPOLY CUSTOMARILY PUBLISHES PROVISIONAL PARENT OR UNCONSOLIDATED COMPANY PROFIT BEFORE RELEASING CONSOLIDATED PROFIT 9301280160 930128 MARKETING BRIEF NOTED WHO'S NEWS JOSEPH N COHEN 47 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF LARGO ENTERTAINMENT AN INDEPENDENT FILM PRODUCTION AND DISTRIBUTION COMPANY IN LOS ANGELES HE WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9301280159 930128 TECHNOLOGY & HEALTH SUN MICROSYSTEMS SAYS 2NDPERIOD NET FELL 28 TRAILING ANALYSTS' FORECASTS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID PRODUCT SHORTAGES AND STARTUP COSTS RELATED TO A NEW COMPUTER LINE CAUSED FISCAL SECONDQUARTER NET INCOME TO DROP 28 TO CONSIDERABLY BELOW SOME ANALYSTS' EXPECTATIONS FOR THE PERIOD ENDED DEC 27 NET FELL TO 343 MILLION OR 33 CENTS A SHARE FROM 475 MILLION OR 47 CENTS A SHARE A YEAR EARLIER IT WAS THE SECOND CONSECUTIVE PERIOD IN WHICH THE TRANSITION TO A NEW PRODUCT LINE HAD HOBBLED THE COMPUTER MAKER SUN HAD BEEN PREDICTING THAT ITS FIRSTQUARTER SUPPLY DIFFICULTIES WOULD CLEAR UP AND THAT GROSS MARGIN WOULD BE SIGNIFICANTLY BETTER THE MARGIN DID IMPROVE TO 41 IN THE SECOND QUARTER FROM THE FIRST QUARTER BUT THAT TRAILED THE YEAREARLIER 45 FIGURE FOR THE FIRST TIME WE HAVE EXCEEDED 1 BILLION OF REVENUE SAID KEVIN C MELIA CHIEF FINANCIAL OFFICER OF THE 10YEAROLD COMPANY WE FEEL CONFIDENT THAT MOST OF THE TRANSITION ISSUES THAT HAMPERED US IN THE FIRST HALF OF THE FISCAL YEAR ARE BEHIND US SUN'S EARNINGS WERE 21 BELOW ANALYSTS' MEAN ESTIMATE OF 42 CENTS A SHARE RESULTS WEREN'T RELEASED UNTIL AFTER THE STOCK MARKET CLOSED YESTERDAY IN NATIONAL OVERTHECOUNTING TRADING SUN'S SHARES FINISHED THE DAY AT 3850 DOWN 75 CENTS WHILE REVENUE CLIMBED TO A RECORD 105 BILLION UP 16 FROM 909 MILLION A YEAR EARLIER PROFIT MARGINS TIGHTENED AS A RESULT OF A SHORTAGE OF THE FIRM'S HIGHEND SPARCSTATION 41 AND EXPENSES RELATED TO RAMPING UP PRODUCTION OF THE MODEL AND THE NEW SPARCSTATION 10 WHICH IS THE MOST SUCCESSFUL NEW PRODUCT IN SUN'S HISTORY WE'RE A LITTLE WAY INTO A NEW PRODUCT CYCLE WE'RE FEELING THE COSTS SAID MR MELIA WE HAVE SOLVED THOSE PROBLEMS WE WILL BE ABLE TO SHIP MODEL 41 IN VOLUME SHIPMENTS FOR THE SUN MICROSYSTEMS COMPUTER CORP UNIT ROSE 21 FROM A YEAR EARLIER THE COMPANY'S SOFTWARE SUBSIDIARY MORE THAN DOUBLED THE LICENSES IT DISTRIBUTED FOR USE OF SUN'S OPERATING SYSTEM NET FOR THE SIX MONTHS FELL TO 391 MILLION OR 38 CENTS A SHARE FROM 742 MILLION OR 74 CENTS A SHARE REVENUE INCREASED 15 TO 19 BILLION FROM 166 BILLION THERE ARE GOING TO BE BUMPS IN THE ROAD AHEAD MR MELIA SAID IT'S OUR CHALLENGE TO MANAGE THOSE BUMPS 9301280158 930128 CANADIAN HOUSING STARTS OTTAWA CANADIAN HOUSING STARTS ROSE 77 IN 1992 TO 168271 FROM 156197 IN 1991 CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID 9301280157 930128 WHO'S NEWS WESTBRIDGE CAPITAL CORP WESTBRIDGE CAPITAL CORP FORT WORTH TEXAS JAMES W THIGPEN 55 YEARS OLD EXECUTIVE VICE PRESIDENT OF THIS INSURANCE HOLDING COMPANY WAS NAMED PRESIDENT SUCCEEDING MARTIN E KANTOR 70 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR THIGPEN WAS ALSO NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER 9301280156 930128 ROCKWELL BUYBACK PROGRAM SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP SUSPENDED ITS 500 MILLION COMMON SHARE BUYBACK PROGRAM SAYING IT WANTS TO CONSERVE CASH FOR ITS PROPOSED 225 MILLION ACQUISITION OF SUNDSTRAND CORP'S DATA CONTROL DIVISION ROCKWELL SAID IT HAS SO FAR USED 1176 MILLION OF THE INITIAL ALLOCATION FOR THE BUYBACK PROGRAM WHICH BEGAN IN NOVEMBER 1991 EARLIER THIS WEEK MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS RATINGS ON 1 BILLION OF ROCKWELL'S DEBT CITING IN PART THE FINANCIAL PRESSURES FROM THE SUNSTRAND ACQUISITION ROCKWELL HAS INTERESTS IN ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES 9301280155 930128 LOUISIANA PACIFIC NET JUMPS PORTLAND ORE LED BY STRONG DEMAND FOR ITS BUILDING MATERIALS LOUISIANA PACIFIC CORP SAID FOURTHQUARTER NET INCOME LEAPED NEARLY FIVEFOLD TO 411 MILLION THAT EQUALS 75 CENTS A SHARE AND COMPARES WITH 88 MILLION OR 16 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED 31 TO 5287 MILLION FROM 4052 MILLION DESPITE LOSSES IN ITS PULP BUSINESS BECAUSE OF WEAK PRICES THE BUILDING PRODUCTS COMPANY SAID NET INCOME FOR THE YEAR MORE THAN TRIPLED TO 1769 MILLION OR 326 A SHARE FROM 559 MILLION OR 103 A SHARE REVENUE INCREASED 28 TO 218 BILLION FROM 17 BILLION 9301280154 930128 YOUR MONEY MATTERS HIDDEN COSTS CAN PUT THE SQUEEZE ON WRAP ACCOUNTS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL HOW EXPENSIVE ARE WRAP ACCOUNTS REALLY INDIVIDUAL INVESTORS HAVE PUMPED MORE THAN 40 BILLION INTO WRAP ACCOUNTS IN RECENT YEARS MAKING THEM ONE OF THE HOTTEST INVESTMENT PRODUCTS ON WALL STREET SINCE THE MUTUAL FUND PEOPLE LOVE WRAP ACCOUNTS BECAUSE A BROKER MATCHES THEM WITH A PROFESSIONAL MONEY MANGER WHO CREATES AN INDIVIDUALLY TAILORED PORTFOLIO OF STOCKS OR BONDS WITHOUT THE MINIMUM INVESTMENT OF 250000 OR MORE THAT MONEY MANAGERS USUALLY REQUIRE MOREOVER INVESTORS GET THE MONEYMANAGEMENT SERVICE AS PART OF A PRIXFIXE MENU THAT ALSO INCLUDES TRADING COMMISSIONS AND MONITORING OF THE MANAGER BY THE BROKERAGE FIRM INVOLVED ALL FOR ONE SOUPTONUTS PRICE THE BIG BEEF ABOUT WRAP ACCOUNTS USUALLY IS THAT THE PRICE IS HIGH TYPICALLY AN ANNUAL FEE OF 3 OF THE ASSETS UNDER MANAGEMENT BUT THAT 3 ISN'T THE ONLY COST INVESTORS SHOULD CONSIDER AS INSTITUTIONAL INVESTORS ALREADY KNOW HIDDEN EXTRAS KNOWN AS EXECUTION COSTS CAN SERIOUSLY AFFECT A PORTFOLIO'S VALUE COMMISSIONS ARE ONLY THE TIP OF THE ICEBERG WHEN IT COMES TO TRADING COSTS SAYS WAYNE WAGNER A PARTNER IN PLEXUS GROUP A SANTA MONICA CALIF CONSULTING FIRM THAT SPECIALIZES IN EXECUTION ISSUES FOR INSTITUTIONAL MANAGERS EXECUTION COSTS INCLUDE THE SPREADS THAT MANAGERS PAY ON SECURITIES AND THE MARKET IMPACT OF THEIR TRADES ON PRICES OF THOSE SECURITIES UNDER NORMAL CIRCUMSTANCES MONEY MANAGERS MAY PLACE THEIR TRADES THROUGH MANY BROKERAGE FIRMS TO ENSURE THE BEST OUTCOME FOR INVESTORS BUT WHEN MONEY MANAGERS AGREE TO JOIN WRAP PROGRAMS THEY GIVE UP THEIR ABILITY TO SHOP FOR THE BEST EXECUTION ON TRADES THAT'S BECAUSE IN EXCHANGE FOR BEING GIVEN MILLIONS OF DOLLARS TO MANAGE FOR A WRAP PROGRAM MONEY MANAGERS AGREE TO DIRECT ALL THE TRADES THROUGH ONE BROKERAGE FIRM THIS CAN HURT WRAP INVESTORS SAY INDUSTRY INSIDERS MONEY MANAGERS AND SECURITIES REGULATORS THEY SAY PLACING ALL THE TRADES THROUGH ONE FIRM RESULTS IN MORE EXPENSIVE EXECUTION THAN MONEY MANAGERS COULD GET ON THEIR OWN AND THAT EXTRA COST TO INVESTORS CAN RANGE FROM HALF A PERCENT TO SEVERAL PERCENTAGE POINTS A YEAR IF YOU LOOK AT THE TRUE COST OF A WRAP ACCOUNT INVESTORS CAN EASILY BE PAYING THE EQUIVALENT OF 5 OF THEIR ASSETS A YEAR OR MORE AND THEY'LL NEVER KNOW SAYS JAMES E WILSON A FORMER BROKER WHO RUNS AN INVESTMENT FIRM IN COLUMBIA SC EXECUTIVES IN CHARGE OF WRAP ACCOUNTS AT MAJOR BROKERAGE FIRMS AGREE THAT EXECUTION COSTS CAN ERODE PERFORMANCE BUT THEY SAY THE AMOUNT IS SMALL EVERY MANAGER WILL TELL YOU THAT BEST EXECUTION MEANS A LOT FOR PERFORMANCE A HALF POINT TO 1 SAYS ARTHUR URCIUOLI A SENIOR VICE PRESIDENT AT MERRILL LYNCH & CO INDUSTRY EXECUTIVES SAY EXECUTION COSTS ARE SOMETHING THAT GOOD WRAP PROGRAMS STRIVE TO CONTROL BUT THEY SAY BAD EXECUTION EXISTS IN THE ACCOUNTS OFFERED BY SOME FIRMS AND THAT CAN HURT INVESTORS IT'S IMPOSSIBLE TO PROVE WHETHER YOU'RE GETTING BEST EXECUTION SAYS DENNIS BERTRUM DIRECTOR OF THE INVESTMENT MANAGEMENT SERVICES DIVISION AT PRUDENTIAL SECURITIES INC AS A RESULT THEY SAY INVESTORS SHOULD BE AWARE OF HOW EXECUTION COSTS ARE INCURRED SO THEY CAN BEGIN TO TELL THE DIFFERENCE BETWEEN HIGHQUALITY WRAP PROGRAMS THAT CONTROL SUCH COSTS AND THOSE THAT DON'T SAYS LEONARD REINHART PRESIDENT OF SHEARSON LEHMAN BROTHERS CONSULTING GROUP IF THE BROKERAGE FIRM DANCES AROUND THE ISSUE MAYBE YOU SHOULD GO ON TO THE NEXT FIRM THERE ARE SEVERAL FACTORS THAT CAN RAISE EXECUTION COSTS IN WRAP ACCOUNTS FOR ONE THING MONEY MANAGERS CAN NO LONGER BE SURE THEY'RE GETTING OPTIMAL SPREADS ON SOME OF THE SECURITIES THEY BUY SPREADS ARE THE DIFFERENCE BETWEEN WHAT THE BROKERAGE FIRM PAYS AND WHAT IT CHARGES THE BUYER OR SELLER IN ADDITION HAVING TO PLACE ALL THEIR TRADES THROUGH ONE BROKERAGE FIRM PREVENTS THE MANAGERS FROM ENSURING THAT THEIR ORDERS ARE GIVEN THE SAME PRIORITY AS THOSE FROM BIG INSTITUTIONAL CLIENTS WHO CAN TAKE BUSINESS ELSEWHERE IF THEY DON'T LIKE THE SERVICE SAYS DONALD TRONE A DIRECTOR WITH CALLAN ASSOCIATES AN INDEPENDENT INVESTMENT CONSULTING FIRM IN SAN FRANCISCO THE DOWNSIDE TO FOLLOWING IN THE FOOTSTEPS OF HUGE INSTITUTIONAL TRADES HE SAYS IS THAT THE STOCK PRICE COULD ALREADY HAVE BEEN MOVED CAUSING WRAP CLIENTS TO PAY MORE WHEN BUYING AND GET LESS WHEN SELLING THIS CAN ERODE THE VALUE OF THE HOLDINGS WHEN THEY TRADE SAYS THEODORE ARONSON A PRINCIPAL WITH ARONSON & FOGLER AN INSTITUTIONAL MONEYMANAGEMENT FIRM IN PHILADELPHIA PROFESSIONAL INVESTORS HAVE A TOUGH TIME BEATING THE MARKET WITH MODEST FEES AND FAVORABLE EXECUTION HE SAYS SO HOW CAN THE WRAP MANAGERS BEAT IT WITH FEES UP TO 3 AND EXPENSIVE EXECUTION HOW MUCH CAN EXECUTION COSTS HURT WRAP INVESTORS MR TRONE WHO SET UP A WRAP PROGRAM AT RAYMOND JAMES ASSOCIATES BEFORE HE JOINED CALLAN PROVIDES AN ESTIMATE THAT OTHERS IN THE INDUSTRY CONFIRM HE SAYS THE IMPACT COULD BE ABOUT 1 OF ASSETS ON PORTFOLIOS WITH LARGE STOCKS WHICH HAVE SMALL SPREADS MODERATE TURNOVER SAY 50 A YEAR AND RESPONSIBLE OVERSEERS AT THE BROKERAGE FIRM WHO CLOSELY MONITOR TRADING DESK ACTIVITIES BUT IN A WORSTCASE SCENARIO A PORTFOLIO COMPOSED OF SECURITIES THAT TRADE WITH HIGH SPREADS CERTAIN BONDS AS WELL AS OVERTHECOUNTER AND FOREIGN STOCKS AND HIGH TURNOVER 300 THE IMPACT COULD BE 5 OF ASSETS ANNUALLY MR TRONE ESTIMATES THAT COULD DOUBLE HE SAYS IF THE WRAP PROGRAM IS RUN ABUSIVELY MR TRONE SAYS HE BELIEVES THAT MOST PEOPLE INVOLVED IN WRAP ACCOUNTS AT BROKERAGE FIRMS ARE ETHICAL IF QUALITY CONTROL DOES BREAK DOWN HE SAYS IT'S IN THE TRADING PITS AND THE BACK OFFICES THAT'S WHERE ABUSES OCCUR IT'S HIDDEN FROM THE PROGRAM MANAGERS AND THE TOP EXECUTIVES UNFORTUNATELY IT'S NOT EASY FOR INVESTORS TO TELL WHETHER THEY'RE IN A WRAP PROGRAM THAT HAS LOW EXECUTION COSTS AND RESPONSIBLE PROGRAM DIRECTORS YOU JUST DON'T KNOW IF YOU'RE GETTING GOOD EXECUTION SAYS MERRILL LYNCH'S MR URCIUOLI WITHOUT REAMS OF COMPUTER DATA YOU CAN'T DOCUMENT IT HE SAYS MERRILL LYNCH MONITORS ITS OWN EXECUTION BY COMPARING THE MONEY MANAGER'S PERFORMANCE IN THE WRAP ACCOUNTS WITH THE MANAGER'S INSTITUTIONAL PERFORMANCE FIGURES BUT THIS IS SOMETHING INDIVIDUALS SHOULD PAY ATTENTION TO AS WELL ASK YOUR MONEY MANAGER DO YOU FEEL YOUR PERFORMANCE HAS BEEN HURT BY POOR EXECUTION' OR DO YOU THINK THE PRICE YOU'RE GETTING ON SALES OF STOCKS IS CONSISTENT' MR URCIUOLI SUGGESTS INVESTORS SHOULDN'T COUNT ON BROKERS TO WATCH OUT FOR POOR EXECUTION FOR THEM POOR EXECUTION ISN'T SOMETHING MOST BROKERS THINK ABOUT BECAUSE IT DOESN'T APPEAR TO HURT THE BROKERAGE FIRM EVEN IN THE BESTRUN WRAP PROGRAMS THE FACT THAT THE FIRMS CAPTURE ALL THE TRADING ACTIVITY LEADS TO PROFIT SOME MONEY MANAGERS HAVE DECIDED NOT TO JOIN WRAP ACCOUNTS BECAUSE THEY FEEL THEIR INABILITY TO KEEP EXECUTION COSTS LOW WOULD HURT THEIR INVESTMENT RETURNS THE PROBLEM FOR US WAS THAT THE IMPUTED COMMISSION WAS MUCH HIGHER THAN OUR NORMAL LEVEL OF TRADING COSTS SAYS CHRIS NIEMCZEWSKI PRESIDENT OF MARSHFIELD ASSOCIATES IN WASHINGTON OUR PERFORMANCE WOULD BE HAMPERED INCREDIBLY THE ANNUAL FEE MAY NOT BE THE ONLY COST IN A WRAP ACCOUNT EXECUTION COSTS WHICH CAN LOWER THE PORTFOLIO'S VALUE MAY ALSO HAVE A BIG IMPACT WHILE ALL MANAGED PORTFOLIOS ARE AFFECTED BY EXECUTION COSTS WRAP ACCOUNTS MAY SUFFER MORE SINCE THE MANAGERS MUST PLACE ALL THEIR TRADES THROUGH ONE FIRM THE EXTRA COST MAY BE LESS THAN A PERCENT OR MUCH HIGHER 9301280153 930128 CHEVRON CORP BOOSTS DIVIDEND SAN FRANCISCO CHEVRON CORP RAISED ITS QUARTERLY DIVIDEND FIVE CENTS TO 875 CENTS A SHARE PAYABLE MARCH 10 TO STOCK OF RECORD FEB 10 THE OIL COMPANY REPORTED THIS WEEK THAT FOURTHQUARTER NET INCOME SOARED TO 109 BILLION OR 330 A SHARE AFTER 546 MILLION OF GAINS A YEAR EARLIER NET INCOME WAS 39 MILLION OR 11 CENTS A SHARE AFTER 244 MILLION IN SPECIAL CHARGES RELATED PRIMARILY TO RESTRUCTURING AND WORK FORCE REDUCTIONS REVENUE ROSE 96 TO 114 BILLION CHEVRON LAST INCREASED THE DIVIDEND FROM 775 CENTS A SHARE IN JUNE 1991 9301280152 930128 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO RICHARD D HEADLEY 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BANC ONE CREDIT CARD SERVICES CORP A NEW POSITION WITH RESPONSIBILITY FOR BANC ONE CREDIT CARDS MR HEADLEY HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OF BANK ONE AKRON HE IS SUCCEEDED BY RAYMOND E HEH 50 WHO HAS BEEN THE BANK'S PRESIDENT AND CHIEF OPERATING OFFICER 9301280151 930128 LEISURE & ARTS FILM TWO DEPARDIEUS PLAY SEVEN STRINGS BY JULIE SALAMON TOUS LES MATINS DU MONDE IS AN EXQUISITELY LUGUBRIOUS HOMAGE TO THE NOTION THAT WHEN IT COMES TO THE CREATION OF GREAT ART SPECIFICALLY THE WRITING AND PERFORMING OF FRENCH BAROQUE MUSIC THE AGONY IS THE ECSTASY ITS HERO THE 17THCENTURY COMPOSER SAINTECOLOMBE KNOWN TO HISTORY AS MONSIEUR SAINTECOLOMBE IS KNOWN TODAY MAINLY FOR ADDING A SEVENTH STRING TO THE VIOLA DA GAMBA TO MAKE ITS SOUND EVEN MORE MELANCHOLIC ACCORDING TO THE FILM THOUGH LITTLE IS KNOWN ABOUT THIS MAN THE FILMMAKERS PORTRAY HIM AS A PURE ARTIST WHO LOCKS HIMSELF IN A ROOM TO GATHER INSPIRATION FROM VISIONS OF HIS DEAD WIFE AND WHO REJECTS THE USUAL ENTICEMENTS OF WEALTH CELEBRITY AND PROXIMITY TO THE KING AND OTHER RICH AND FAMOUS POTENTIAL PATRONS THE STORY OF THIS SOLITARY LIFE MAY SOUND LIKE AN INCREDIBLY BORING SELFRIGHTEOUS MOVIE AND I SUPPOSE IT WOULD BE EASY TO BECOME IMPATIENT WITH SUCH A DETAILED EXAMINATION OF ITS ESSENTIALLY DUBIOUS PREMISE THAT THE ONLY VALID MOTIVATION FOR AN ARTIST IS DEEP SORROW HOWEVER I CAN VOUCH THAT IT IS QUITE POSSIBLE TO FALL UNDER ITS SENTIMENTALLY MORBID SPELL IT IS FOR BETTER AND FOR WORSE WHAT PEOPLE THINK OF WHEN THEY THINK OF FRENCH FILMS GORGEOUS SAD AND A LITTLE PREPOSTEROUS IF EXAMINED TOO RIGOROUSLY I WAS SEDUCED AT THE FIRST HAUNTING STRAINS OF ITS MESMERIZING FRENCH BAROQUE SCORE MUCH OF IT PLAYED BY VIOL VIRTUOSO JORDI SAVALL AND THEN AGAIN BY GERARD DEPARDIEU'S LULLING VOICE HE NARRATES THE FILM WHICH UNFOLDS AS A FLASHBACK TOLD BY AN AGING BAROQUE VIOL MASTER AND COMPOSER MARIN MARAIS MR DEPARDIEU ABOUT HIS OWN MASTER SAINTECOLOMBE IN REAL LIFE MARAIS APPARENTLY WAS CONSIDERED A KIND OF GENIUS PERHAPS A MUCH MORE ACCOMPLISHED VIOL PLAYER THAN HIS MASTER BUT MARAIS A COURT MUSICIAN WHO REAPED THE REWARDS OF HIS TALENT IN HIS OWN LIFETIME WASN'T AS INTRIGUING AS THE MYSTERIOUS RECLUSE SAINTECOLOMBE SO IN PASCAL QUIGNARD'S NOVEL AND HIS SCREEN ADAPTATION OF IT WRITTEN WITH DIRECTOR ALAIN CORNEAU MARAIS IS PRESENTED AS SOMETHING LESS A REMORSEFUL SUCCESS WHO CAN BECOME GREAT ONLY WHEN HE LEARNS TO SUFFER AS WELL AS HIS MENTOR THE SAINTECOLOMBE OF THE MOVIE JEANPIERRE MARIELLE IS A TACITURN MAN IMMERSED IN SORROW ONE COULD SAY LUXURIATING IN SORROW THOUGH HIS LIFE IS SIMPLE BY THE STANDARDS OF THE ROYAL COURT HIS COUNTRY ESTATE IS VERY COMFORTABLE ESPECIALLY AS SEEN THROUGH THE LENS OF YVES ANGELO WHO GIVES IT THE SOBER BEAUTY OF CERTAIN 17THCENTURY PAINTINGS REMBRANDT'S LATER WORK COMES TO MIND SAINTECOLOMBE LIVES THERE WITH HIS TWO LITTLE GIRLS LARGELY IGNORING THEM EXCEPT TO TEACH THEM TO PLAY THE VIOL HE TELLS THE SMALL SULKY ONE I DON'T CARE FOR PEOPLE OR BOOKS OR LANGUAGE BUT I LOVE YOU BOTH VERY MUCH AND THAT'S ENOUGH THIS IS THE HOUSEHOLD MARAIS FINDS WHEN AT AGE 17 HE SHOWS UP TO ASK SAINTECOLOMBE TO TAKE HIM ON AS A STUDENT HE PLAYS BEAUTIFULLY AT HIS AUDITION ONLY TO HAVE THE MASTER REJECT HIM THEN ACCEPT HIM FOR YOUR GRIEF NOT FOR YOUR SKILL THIS YOUNGER MARAIS IS PLAYED BY A YOUNGER DEPARDIEU GUILLAUME GERARD'S SON HE HAS A VALLEY BOY'S SULKY BLOND BEAUTY WHICH ACTUALLY ENHANCES THIS VISION OF HIM AS THE SINCERE OPPORTUNIST WHEN SAINTECOLOMBE SPURNS HIM FOR BEING TOO FACILE MARAIS DECIDES HE WILL STUDY GRIEF AS WELL AS BOWING LIKE SAINTECOLOMBE BUT HE DOES NOT ABANDON WORLDLY AMBITION WHEN THE KING INVITES MARAIS TO THE COURT UNLIKE SAINTECOLOMBE HE GOES EAGERLY AND HIS AFFAIR WITH SAINTECOLOMBE'S OLDER DAUGHTER WHO HAS LEARNED MANY OF HER FATHER'S MUSICAL SECRETS SEEMS MORE MOTIVATED BY A LUST FOR MUSICAL KNOWLEDGE THAN FOR HER SHE IS PLAYED BY THE BONY BEAUTY ANNE BROCHET WHO WAS ROXANE TO DEPARDIEU'S CYRANO DE BERGERAC THE SENIOR DEPARDIEU TURNS HIMSELF INTO A CARICATURE OF A FOP FAT BEWIGGED AND TOTTERING AROUND ON HIGH HEELS HE IS LIKE THE FILM LUDICROUS YET SURPRISINGLY MOVING MATINEE PAYS HOMAGE TO A MUCH LESS RAREFIED ART FORM THE SCIENCE FICTION THRILLERS THAT WERE POPULAR IN THE 1950S AND '60S MOVIES SUCH AS THE TINGLER AND ATTACK OF THE KILLER TOMATOES IT'S BEEN OBSERVED OFTEN ENOUGH THAT THIS PARTICULAR GENRE SPECIALIZING IN MUTANT BEINGS AND INVASIONS FROM BEYOND ALLOWED ITS YOUNG AUDIENCES TO SOOTHE THEIR FEARS OF THE BIG ONE BY SCREAMING AT CREEPY CREATURES ONSCREEN THIS GOODNATURED PICTURE TAKES THIS THEORY DIRECTLY TO HEART BY SETTING THE ACTION IN KEY WEST ON THE WEEKEND OF THE CUBAN MISSILE CRISIS IN 1962 THE DIRECTOR JOE DANTE COMES TO THIS PROJECT WITH IMPECCABLE CREDENTIALS MOST SIGNIFICANTLY THE CULT FAVORITE PIRANHA A SPOOF OF JAWS WRITTEN BY THE FILMMAKER JOHN SAYLES WHO PLAYS A SMALL PART IN MATINEE THOUGH THIS STUDIO PICTURE ISN'T QUITE CHEESY ENOUGH FOR COMPLETE AUTHENTICITY MR DANTE AND HIS TECHNICIANS PAY THEIR RESPECTS TO THE FORM'S ESSENTIAL ROUGHNESS JOHN GOODMAN IS SUITABLY FAT AND JOLLY AS THE SCHLOCKMEISTER WHO COMES TO KEY WEST TO DISTRACT THE LOCAL CHILDREN FROM THE REAL TERROR TAKING PLACE OUTSIDE THE MOVIE THEATER IT'S ALWAYS FUN TO SEE CATHY MORIARTY DOING HER PARTICULAR VERSION OF A CHARACTER WHO'S SPENT A LOT OF TIME STUDYING FAYE DUNAWAY AND JOAN CRAWFORD BUT THE MOST FUN COMES IN THE SNIPPETS OF FAKE HORROR FILMS SUCH AS MANT THE STORY OF A CREATURE THAT'S HALFMAN HALFANT ALL TERROR YOU GET THE PICTURE VIDEO TIP THINKING ABOUT PIRANHA REMINDED ME OF PIRANHA II THE SPAWNING THIS VERY BAD FILM IS WORTH SEEING ONLY BECAUSE IT WAS DIRECTED BY JAMES CAMERON WHO WENT ON TO MAKE SOME VERY GOOD SCIENCE FICTION FILMS NOTABLY THE TERMINATOR AND ALIENS 9301280150 930128 TECHNOLOGY TEXAS INSTRUMENTS HITACHI PLANS DALLAS TEXAS INSTRUMENTS INC AND HITACHI LTD SAID THEY AGREED TO JOINTLY RESEARCH THE NEXT GENERATION OF COMPUTER MEMORY CHIPS THE COMPANIES CHIPDEVELOPMENT PARTNERS SINCE 1988 SAID THEY WILL SWAP INFORMATION ABOUT THE DESIGN AND MANUFACTURING TECHNOLOGY FOR THE 256MEGABIT DYNAMIC RANDOM ACCESS MEMORY CHIP OR DRAM THE DEVICE CAPABLE OF STORING THE EQUIVALENT OF 11200 PAGES OF TYPED TEXT IS EXPECTED TO QUADRUPLE THE MEMORY CAPACITY OF THE 64MEGABIT DRAM ALREADY UNDER DEVELOPMENT BY TI AND HITACHI THOUGH THE COMPANIES DECLINED TO DISCUSS THE TIMETABLE FOR A 256MEGABIT PROTOTYPE ANALYSTS SAY THEY EXPECT THE CHIP TO REACH VOLUME PRODUCTION BY THE END OF THE DECADE 9301280149 930128 WHO'S NEWS CIGNA CORP CIGNA CORP PHILADELPHIA LOUIS W SULLIVAN 59 YEARS OLD WAS NAMED A DIRECTOR AT THIS INSURANCE AND FINANCIALSERVICES CONCERN DR SULLIVAN WHO IS PRESIDENT OF MOREHOUSE SCHOOL OF MEDICINE IN ATLANTA AND WAS FORMER SECRETARY OF HEALTH AND HUMAN SERVICES IN THE BUSH ADMINISTRATION INCREASES THE BOARD TO 14 MEMBERS 9301280148 930128 PEPPERAND SALT IS STARTING TO BOOMERANG IT HAS NO REMOTE IT'S TRUE THAT THE ECONOMY IS MOVING AGAIN BUT UNFORTUNATELY IT'S MOVING TO JAPAN 9301280147 930128 EG&G SAYS VANDALS CUT ELECTRICAL GEAR AT NUCLEAR TEST SITE WELLESLEY MASS EG&G INC DISCLOSED THAT ELECTRICAL EQUIPMENT WAS VANDALIZED AT A DEPARTMENT OF ENERGY NUCLEAR TEST FACILITY THAT EG&G OVERSEES IN IDAHO FALLS IDAHO AN EG&G SPOKESMAN AT THE DOE'S IDAHO NATIONAL ENGINEERING LABORATORY SAID SEVERAL WIRES HAD BEEN CUT AND OTHER MINOR DAMAGE WAS DONE TO ELECTRICAL CONTROL EQUIPMENT BEING INSTALLED FOR AN ADVANCED TEST REACTOR A NUCLEAR FACILITY SCHEDULED TO START OPERATIONS THIS SUMMER THE DAMAGE CAUSED NO RISK TO EMPLOYEES OR THE PUBLIC HE ADDED THE SPOKESMAN SAID THE FEDERAL BUREAU OF INVESTIGATION AND DOE OFFICIALS ARE INVESTIGATING THE INCIDENT THE DAMAGE WAS DISCOVERED OVER THE WEEKEND OF JAN 16 HE ADDED THE DAMAGE WILL BE REPAIRED AND THE ADVANCED TEST REACTOR WHICH WILL BE USED TO TEST NUCLEAR REACTOR FUELS AND MATERIALS IS EXPECTED TO BE COMPLETED ON SCHEDULE THE SPOKESMAN SAID EG&G IS AN INSTRUMENT MAKER AND TECHNICAL AND ENERGYSERVICES CONTRACTOR 9301280146 930128 WHO'S NEWS GENCORP INC GENCORP INC FAIRLAWN OHIO JEWEL LAFONTANTMANKARIOUS WAS NAMED A NEW DIRECTOR OF THIS MAKER OF REINFORCED PLASTICS COATED FABRICS AND INDUSTRIAL RUBBER PRODUCTS FOR AUTOMOTIVE APPLICATIONS THE ACTION INCREASES THE SIZE OF GENCORP'S BOARD TO 12 MEMBERS FROM 11 MEMBERS MRS LAFONTANTMANKARIOUS 70 YEARS OLD WAS MOST RECENTLY AMBASSADORATLARGE AND US COORDINATOR FOR REFUGEE AFFAIRS IN THE BUSH ADMINISTRATION GENCORP ALSO HAS BUSINESSES IN AEROSPACE AND DEFENSE PROCUREMENT 9301280145 930128 LEISURE & ARTS BOOKSHELF A HISTORY OF LOVE BY JACK FLAM IT MAKES THE WORLD GO ROUND IT CONQUERS ALL AND OF COURSE ONLY FOOLS FALL IN THE SUBJECT OF STEPHEN KERN'S THOUGHTFUL AND THOUGHTPROVOKING NEW BOOK THE CULTURE OF LOVE VICTORIANS TO MODERNS HARVARD UNIVERSITY PRESS 458 PAGES 3495 MR KERN BELIEVES THAT OUR UNDERSTANDING OF LOVE AND WAYS OF EXPERIENCING IT ARE HISTORICALLY DETERMINED RATHER THAN UNIVERSAL AND HE HAS SET OUT TO WRITE NOTHING LESS THAN A HISTORY OF LOVE IN THE MODERN WORLD HE APPROACHES HIS SUBJECT THROUGH REPRESENTATIONS OF LOVE IN NOVELS AND PAINTINGS DONE BETWEEN 1847 WHEN WUTHERING HEIGHTS AND JANE EYRE WERE PUBLISHED AND 1933 WHEN TENDER IS THE NIGHT WAS PUBLISHED ACCORDING TO HEIDEGGER AUTHENTIC EXPERIENCE CANNOT BE THE RESULT OF HABIT OR PASSIVE ACCEPTANCE BUT MUST BE REFLECTED ON USING HEIDEGGER'S POLARITY AS A POINT OF DEPARTURE MR KERN DEVELOPS A COMPLEX ARGUMENT THAT RUNS AS FOLLOWS BECAUSE THE VICTORIANS TREATED LOVE UNREFLECTIVELY AND IN MANY CASES PASSIVELY THEIR NOTION OF LOVE TENDED TO BE CLICHED AND LINKED TO UNREALISTIC EXPECTATIONS DURING THE MODERN PERIOD A GROWING CANDOR AND INCREASED REFLECTIVENESS AND SELFAWARENESS ESPECIALLY ON THE PART OF WOMEN MADE LOVE MORE AUTHENTIC MR KERN HAS ORGANIZED THE CHAPTERS OF HIS BOOK IN APPROXIMATE ACCORD WITH THE VARIOUS SEQUENCES OF A LOVE RELATIONSHIP INDIVIDUAL CHAPTERS INCLUDE WAITING MEETING KISSING JEALOUSY SEX MARRIAGE AND ENDING WHAT MAKES ALL OF THIS SO INTERESTING IS THE ADMIRABLE SENSITIVITY AND OPENMINDEDNESS THAT MR KERN BRINGS TO HIS IMPRESSIVELY WIDE READING HE ILLUSTRATES HIS GENERAL POINTS WITH WELLCHOSEN AND OFTEN DELIGHTFUL INSTANCES FROM THE NOVELS HE CONSIDERS AND HE HAS A NICE AWARENESS OF THE CRUCIAL ROLE OF STYLE IN NARRATIVE PAINTINGS FOR EXAMPLE IN HIS WAITING CHAPTER HE DISCUSSES HOW THE HEROINES IN 19THCENTURY NOVELS PASSIVELY WAIT FOR LOVE TO ARRIVE WHEREAS THE WOMEN IN LATER NOVELS ARE ABLE TO MOVE OUT OF THEIR EXTREMELY CONSTRAINED SOCIAL AND GEOGRAPHICAL CIRCUMSTANCES THE WOMEN IN THE NOVELS OF CHARLOTTE AND EMILY BRONTE FOR EXAMPLE LIVE THEIR LIVES WITHIN A VERY NARROWLY CONFINED WORLD AROUND 1850 WOMEN IN PARTICULAR FACED A SHORT PERIOD OF ELIGIBILITY AND A SMALL POOL OF POTENTIAL LOVERS MR KERN OBSERVES AFTER WORLD WAR I HOWEVER THE LOVE POOL WAS EXPANDED BY THE BREAKDOWN OF CONVENTIONAL BARRIERS OF LOCALE CLASS RACE AND MORALITY THESE CHANGES WERE IN LARGE MEASURE PRECIPITATED BY TECHNOLOGICAL ADVANCES WHICH LED TO REVOLUTIONARY INNOVATIONS IN MANNERS AND MORES IN PARTICULAR THE DEVELOPMENT OF RAILWAYS AND MOTORCARS MADE WOMEN PHYSICALLY MORE MOBILE AND CHANGING ECONOMIC CIRCUMSTANCES GAVE THEM GREATER ACCESS TO WORK PLACES AND INCREASING CONTROL OVER THEIR IMMEDIATE SURROUNDINGS TRADITIONAL MATCHMAKERS BECAME OBSOLETE MEN AND WOMEN COULD MEET EACH OTHER DIRECTLY IN THEIR EXPANDED SOCIAL ARENAS AND AS CHANCE ENCOUNTERS BECAME MORE COMMONPLACE THEY BEGAN TO PLAY ROLES IN EACH OTHER'S LIVES THAT WERE BASED ON REALITY RATHER THAN FANTASY ATTITUDES TOWARD MARRIAGE UNDERWENT ESPECIALLY RADICAL TRANSFORMATIONS IN THE VICTORIAN NOVEL MARRIAGE IS SEEN AS A GOAL AND ACT OF CLOSURE AS REFLECTED IN JANE EYRE'S FAMOUS LINE READER I MARRIED HIM MARRIAGES IN MODERN NOVELS FACE THE FUTURE DIFFERENTLY RATHER TENTATIVELY AS IN HENRY JAMES'S THE GOLDEN BOWL PERVERSELY AS IN FORD MADDOX FORD'S THE GOOD SOLDIER OR WITH A CHILLING SENSE OF LIMITS AS IN VIRGINIA WOOLF'S TO THE LIGHTHOUSE MR KERN'S BOOK RAISES A NUMBER OF DISTURBING QUESTIONS ABOUT THE PRESENT IF HE IS RIGHT AND LOVE HAS BECOME INCREASINGLY MORE AUTHENTIC WHY IS THERE THEN SO MUCH BREAKDOWN IN LOVE RELATIONSHIPS IN THE MODERN WORLD AS REFLECTED IN THE SOARING DIVORCE RATE DOES THIS SUGGEST THAT AUTHENTIC LOVE IS BY DEFINITION LESS STABLE AND THAT THE VERY REFLECTIVENESS AND LACK OF PASSIVITY INVOLVED IN LOVING AUTHENTICALLY OPEN LOVE TO CONSTANT REEVALUATION AND TRANSFORMATION EVEN MORE PROBLEMATICAL IF LOVE HAS BECOME INCREASINGLY AUTHENTIC WHY IN RECENT YEARS HAS THERE BEEN SUCH A VAST PROLIFERATION OF PATENTLY INAUTHENTIC LOVE IN POPULAR CULTURE AS SEEN IN ADVERTISING SOAP OPERAS SONGS AND POPULAR NOVELS HAVE WE PERHAPS ENTERED A NEW HISTORICAL PHASE MARKED BY ITS OWN KIND OF SYSTEMATIC INAUTHENTICITY ALTHOUGH MR KERN DOES NOT ATTEMPT TO ADDRESS THESE PRESENTDAY QUESTIONS HIS WONDERFULLY PROVOCATIVE BOOK ENCOURAGES THE READER TO THINK ABOUT THE WHOLE SUBJECT IN DIFFERENT WAYS EVEN IF YOU DO NOT AGREE WITH ALL ASPECTS OF HIS GENERAL ARGUMENT YOU COME AWAY FROM THIS BOOK WITH A FULLER UNDERSTANDING OF HOW MUCH CULTURAL PATTERNS HAVE DETERMINED OUR UNDERSTANDING OF LOVE AND EVEN OUR ABILITY TO EXPERIENCE IT MR FLAM IS DISTINGUISHED PROFESSOR OF ART HISTORY AT THE CITY UNIVERSITY OF NEW YORK 9301280144 930128 WHO'S NEWS DESIGNS SAYS MARGOLIS WILL LEAVE TWO POSTS BERGER WILL MOVE UP NEWTON MASS DESIGNS INC SAID ITS FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER 68YEAROLD CALVIN MARGOLIS WILL STEP ASIDE UNDER A MANAGEMENT SUCCESSION PROGRAM STANLEY I BERGER 63 PRESIDENT AND CHIEF OPERATING OFFICER WILL SUCCEED MR MARGOLIS AS CHAIRMAN AND CHIEF EXECUTIVE HE SAID HE AND MR MARGOLIS IN 1976 COFOUNDED THE RETAILER OF CLOTHES MADE BY LEVI STRAUSS & CO MR MARGOLIS WILL REMAIN A DIRECTOR OF DESIGNS HE COULDN'T BE REACHED FOR COMMENT MR BERGER DECLINED TO SAY WHETHER MR MARGOLIS HAD EITHER RETIRED OR RESIGNED JOEL H REICHMAN 42 EXECUTIVE VICE PRESIDENT WILL SUCCEED MR BERGER AS PRESIDENT AND CHIEF OPERATING OFFICER MR BERGER SAID THAT HE PLANS TO RETIRE WHEN HE TURNS 65 AND THAT MR REICHMAN WILL SUCCEED HIM AS CHIEF EXECUTIVE 9301280143 930128 WHO'S NEWS CIMFLEX TEKNOWLEDGE CORP CIMFLEX TEKNOWLEDGE CORP PITTSBURGH RICK HAYESROTH 45 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND NEIL JACOBSTEIN 38 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DESIGNER OF SOFTWARE FOR MANUFACTURING BOTH WERE ALSO ELECTED DIRECTORS MR HAYESROTH HAS BEEN EXECUTIVE VICE PRESIDENT AND CHIEF SCIENTIST OF CIMFLEX MR JACOBSTEIN HAS BEEN VICE PRESIDENT AND GENERAL MANAGER OF CIMFLEX'S KNOWLEDGE SYSTEMS DIVISION IN PALO ALTO CALIF MESSRS HAYESROTH AND JACOBSTEIN SUCCEED DANIEL R ROBUSTO 44 WHO RESIGNED IN OCTOBER AS CHAIRMAN CEO AND PRESIDENT MR JACOBSTEIN'S CHIEF OPERATING OFFICER'S POSITION IS NEW MR ROBUSTO'S POSITIONS HAD BEEN FILLED TEMPORARILY BY JAMES C WORKMAN 49 WHO CONTINUES AS A DIRECTOR 9301280142 930128 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS ADRIANA STADECKER PREVIOUSLY HUMAN RESOURCES MANAGER FOR MANUFACTURING AND LOGISTICS WAS NAMED TO THE NEW POST OF VICE PRESIDENT EXECUTIVE OPERATIONS THE 46YEAROLD ONETIME ARCHITECT HAS WORKED AT DIGITAL SINCE 1981 SHE WAS ADDED TO THE OFFICE OF THE PRESIDENT AT DIGITAL IN OCTOBER WHEN ROBERT PALMER TOOK OVER AS CHIEF EXECUTIVE OFFICER IN HER NEW POST SHE WILL OVERSEE THE PROCESS OF DEVELOPING STRATEGIC AND OPERATIONAL PLANS BY SENIOR MANAGEMENT THE COMPUTER MAKER SAID 9301280141 930128 WHAT'S NEWS WORLDWIDE CLINTON AGREED TO A COMPROMISE WITH CONGRESS ON GAYS IN THE MILITARY THE WHITE HOUSE APPROVED THE COMPROMISE IN A BID TO FEND OFF A VOTE AGAINST ITS PLANS TO LIFT THE MILITARY'S BAN ON GAYS UNDER THE COMPROMISE MUCH OF CLINTON'S PLAN REMAINS INTACT BUT RATHER THAN ISSUING AN EXECUTIVE ORDER LIFTING THE BAN CLINTON WILL PRESENT AN ORDER THAT CONGRESS WOULD VOTE ON DEFENSE SECRETARY ASPIN SAID MEETING WITH MEMBERS OF THE ARMED SERVICES COMMITTEE CLINTON STRESSED THAT HE CONTINUES TO BELIEVE THE BAN SHOULD BE LIFTED AN ANNOUNCEMENT OF THE COMPROMISE WILL STATE THAT THE MILITARY NO LONGER WILL ASK RECRUITS ABOUT THEIR SEXUAL ORIENTATION THE PRESIDENT ALSO IS EXPECTED TO DIRECT THE MILITARY TO STOP PROCEEDINGS TO DISMISS HOMOSEXUALS SECRETARY OF STATE CHRISTOPHER ASKED US OFFICIALS TO PREPARE PAPERS EXAMINING THE POSSIBILITY OF BOMBING BOSNIAN SERB AIRFIELDS AND HEAVY WEAPONS AS PART OF A REVIEW OF ALL POLICY OPTIONS OPEN TO THE US THE STATE DEPARTMENT ALSO WAS ANALYZING THE IMPLICATIONS OF RELAXING AN ARMS EMBARGO AGAINST BOSNIA'S MUSLIM GOVERNMENT THE UN'S CHIEF ACCUSED CROATIANS OF WIDENING ATTACKS INTO SERBDOMINATED AREAS OF CROATIA AND HINTED HE MIGHT WITHDRAW UN PERSONNEL FROM THE FORMER YUGOSLAV REPUBLIC BECAUSE OF THE GRAVE DANGER FDA ADMINISTRATORS CANCELED A SPECIAL MEETING ON THE POTENTIALLY CONTROVERSIAL ISSUE OF ALLOWING BIRTH CONTROL PILLS TO BE SOLD WITHOUT A PRESCRIPTION THE MEETING HAD BEEN ORGANIZED BY JOHNSON & JOHNSON A HOUSE PANEL PASSED A BILL REQUIRING LARGER COMPANIES TO GIVE WORKERS UNPAID LEAVE FOR A FAMILY OR MEDICAL EMERGENCY SENDING THE MEASURE TO A FLOOR VOTE IN CONGRESS NEXT WEEK THE 2913 VOTE MOSTLY FOLLOWED PARTY LINES ISRAEL'S HIGH COURT PREPARED TO RULE TODAY ON WHETHER TO UPHOLD THE GOVERNMENT'S DEC 17 EXPULSION OF PALESTINIANS TO SOUTHERN LEBANON THE COURT HAS RARELY REVERSED THE GOVERNMENT ON STATE SECURITY ISSUES UN OFFICIALS HAVE THREATENED TO FORCE ISRAEL TO TAKE BACK THE DEPORTEES ALMOST 400 OF WHOM REMAIN IN A TENT CAMP HILLARY CLINTON RECEIVED A POSITIVE RATING OF 57 IN A WALL STREET JOURNAL/NBC NEWS POLL UP FROM 46 IN DECEMBER AN OVERWHELMING 74 SAID SHE IS A POSITIVE ROLE MODEL WHILE ONLY 15 SAID SHE ISN'T RESPONDENTS WERE SPLIT DOWN THE MIDDLE ON WHETHER SHE SHOULD BE INVOLVED IN KEY WHITE HOUSE POLICY DECISIONS AN MIT GRADUATE IS RESISTING THE SCHOOL'S BID FOR REPAYMENT OF HIS STUDENT LOAN BY COUNTERSUING MIT FOR ALLEGED COLLUSION IN FIXING FINANCIALAID AWARDS THE COUNTERCLAIM COULD EXPOSE A POTENTIALLY LARGE AREA OF LIABILITY FOR PRIVATE SCHOOLS THAT HAVE BEEN TARGETS OF A JUSTICE DEPARTMENT PRICEFIXING CASE KENYA'S PRESIDENT MOI SUSPENDED THE COUNTRY'S PARLIAMENT THE DAY AFTER IT ADMITTED THE FIRST OPPOSITION MEMBERS IN MORE THAN A QUARTER OF A CENTURY ANGRY OPPOSITION SPOKESMEN SAID THE MOVE WAS AN ATTEMPT TO SABOTAGE THE LEGISLATURE AND TO BLOCK DEBATE OF TRIBAL VIOLENCE AND MOI'S 14YEAROLD REGIME A US SPECIAL ENVOY ACCUSED THE UN OF DRAGGING ITS FEET ON TAKING OVER MILITARY COMMAND IN SOMALIA FROM THE AMERICAN FORCES THERE ROBERT OAKLEY SAID IN MOGADISHU THAT SEVERAL NATIONS WERE PRESSING UN CHIEF BOUTROSGHALI TO APPOINT AN INDEPENDENT MEDIATOR TO HELP WARRING SOMALI FACTIONS WORK TOWARD PEACE WESTERN EUROPEAN NATIONS ARE TARGETING THEIR ARMED FORCES FOR MAJOR BUDGETCUTTING EFFORTS SEVERAL GOVERNMENTS INTEND TO SCALE BACK OR ABOLISH CONSCRIPTION AND TO DEVELOP SMALLER VOLUNTEER FORCES AS IN THE US AND BRITAIN CAPABLE OF CONDUCTING PEACEKEEPING MISSIONS YELTSIN ARRIVED IN INDIA HOPING TO REVIVE MOSCOW'S SOVIETERA FRIENDSHIP WITH NEW DELHI BY RESOLVING A DISPUTE OVER FUNDS OWED TO RUSSIA AND COMPLETING A 500 MILLION ARMS SALE EARLIER IN THE DAY MOBS OF HINDUS AND MUSLIMS CLASHED IN THE CAPITAL A BERLIN COURT ORDERED FORMER EAST GERMAN LEADER HONECKER TO RETURN TO GERMANY FROM CHILE TO ATTEND THE FINAL SESSION OF HIS MANSLAUGHTER TRIAL NEXT MONTH BUT HIS LAWYERS SAID HE IS TOO ILL TO GO A TECHNICALITY FORCED THE STATE TO RESUME THE TRIAL 9301280140 930128 USX UNIT'S CAPITAL BUDGET FALLS PITTSBURGH USX CORP SAID ITS USXMARATHON GROUP APPROVED A 112 BILLION CAPITAL AND EXPLORATION BUDGET FOR 1993 THE FIGURE IS DOWN 12 FROM 1992 MARATHON GROUP'S 1993 ENVIRONMENTALRELATED EXPENDITURES WILL BE 141 MILLION DOWN FROM PRIOR YEARS AS MARATHON COMPLETES ITS 300 MILLION MULTIYEAR CAPITAL PROGRAM FOR DIESEL DESULFURIZATION 9301280139 930128 BUSINESS BRIEF ALLIANT TO CUT 30 OF WORK FORCE POSTS LOSS OF 905 MILLION EDINA MINN MUNITIONS MAKER ALLIANT TECHSYSTEMS INC FACED WITH SOFTENING DEFENSEINDUSTRY OUTLAYS MOVED TO REDUCE ITS 5600MEMBER WORK FORCE BY NEARLY A THIRD THE CUTBACKS REFLECT THE WEAPONS MAKER'S EXPECTATIONS OF DECLINING PRODUCTION IN CERTAIN US WEAPONS PROGRAMS AS WELL AS A GENERAL DROPOFF IN US DEFENSE EXPENDITURES AND DELAYS IN ORDERS FROM SOME INTERNATIONAL CUSTOMERS TO EFFECT THE REDUCTION ALLIANT TOOK A PRETAX 1186 MILLION RESTRUCTURING CHARGE IN ITS THIRD QUARTER ENDED DEC 27 INCLUDING A 205 MILLION LOSS FROM DISCONTINUED OPERATIONS ALLIANT REPORTED A NET LOSS IN THE LATEST PERIOD OF 905 MILLION OR 937 A SHARE ON SALES OF 2375 MILLION IN THE YEARAGO QUARTER ALLIANT HAD NET INCOME OF 8 MILLION OR 80 CENTS A SHARE ON REVENUE OF 2301 MILLION ALLIANT WHICH MAKES A HOST OF WEAPONS INCLUDING TANK AMMUNITION TORPEDOES CLUSTER BOMBS AND MEDIUMCALIBER MACHINEGUN ROUNDS SAID IT EXPECTS SALES FOR FISCAL 1994 TO DECLINE TO ABOUT 800 MILLION FROM THE PROJECTED 1 BILLION TO 11 BILLION FOR THE CURRENT YEAR IT'S IMPORTANT THAT WE MANAGE OUR BUSINESS TO THE REALITIES OF THE MARKETPLACE DURING THIS PERIOD OF RAPID CHANGE IN THE DEFENSE INDUSTRY SAID TOBY G WARSON PRESIDENT AND CHIEF EXECUTIVE OFFICER THE SPECIFIC WEAPONS PROGRAMS WHERE PRODUCTION IS DROPPING A SPOKESMAN SAID ARE THE ADAM ANTIPERSONNEL MINE THE DISPOSABLE INFANTRY WEAPON KNOWN AS THE AT4 AND THE MK46 TORPEDO THE 1990 SPINOFF FROM HONEYWELL INC SAID ITS RESTRUCTURING CALLS FOR IT TO REDUCE ITS WORK FORCE BY ABOUT 30 OR SOME 1700 PEOPLE BY APRIL OF 1994 THE BULK OF THE DISMISSALS WILL OCCUR IN THE COMING TWO MONTHS THE SPOKESMAN SAID LAST MONTH ALLIANT CALLED OFF A PLAN TO SWAP A 22 STAKE TO ACQUIRE OLIN CORP'S ORDNANCE OPERATIONS AFTER FEDERAL ANTITRUST REGULATORS OPPOSED THE MOVE THAT UNSUCCESSFUL CONSOLIDATION EFFORT WAS SEEN AS AN ATTEMPT TO AMELIORATE THE EFFECT OF THE DEFENSE INDUSTRY'S ORDER DROPOFF 9301280138 930128 ALCATEL ALSTHOM '92 PROFIT ROSE PARIS ALCATEL ALSTHOM SA A COMMUNICATIONS ENERGY AND TRANSPORTATION SYSTEMS COMPANY REPORTED 1992 CONSOLIDATED PROFIT INCREASED 12 FROM 1991 ON THE BASIS OF THE LATEST AVAILABLE INFORMATION ALCATEL ALSO SAID THAT ALTHOUGH THE ECONOMIC CLIMATE CONTINUES TO BE DIFFICULT AND LOOKS LIKE IT WILL REMAIN SO PROFIT THIS YEAR SHOULD BE MAINTAINED AT AROUND THE 1992 LEVEL BECAUSE OF THE COMPANY'S CURRENT ORDER BOOK ALCATEL ALSTHOM DIDN'T GIVE SPECIFIC FIGURES ANALYSTS NOTED THAT THE 12 RISE IN FULLYEAR EARNINGS FOR ALCATEL INDICATES A SHARP SLOWDOWN IN THE LATTER HALF OF THE YEAR ALCATEL'S 1992 FIRSTHALF PROFIT ROSE 20 TO 31 BILLION FRANCS 9301280137 930128 WHO'S NEWS BARCLAYS BANK PLC BARCLAYS BANK PLC LONDON ALAN BROWN WAS APPOINTED TO THE NEWLY CREATED POSITION OF DIRECTOR FOR GROUP CREDIT POLICY AT THE UK BANKING AND FINANCIAL SERVICES GROUP EFFECTIVE MARCH 1 MR BROWN IS CURRENTLY CHIEF EXECUTIVE OFFICER OF BARCLAYS IN JAPAN HIS SUCCESSOR IN JAPAN WILL BE CALLUM MCCARTHY CHIEF EXECUTIVE OF CORPORATE FINANCE IN BARCLAYS'S MERCHANT BANKING DIVISION BZW IN LONDON 9301280136 930128 WHO'S NEWS AMERICAN FILTRONA CORP AMERICAN FILTRONA CORP RICHMOND VA LC DROZESKI JR 53 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER AT THIS FIBER PLASTIC AND FILTRATIONPRODUCTS CONCERN MR DROZESKI WHO WILL CONTINUE AS EXECUTIVE VICE PRESIDENT FILLS A POSITION THAT WAS VACANT SINCE 1987 9301280135 930128 WHO'S NEWS THREE DIRECTORS AT AMERICAN EXPRESS RESIGN AFTER FAILING TO OUST CHAIRMAN BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THREE OUTSIDE DIRECTORS AT AMERICAN EXPRESS CO WHO PUSHED FOR THE OUSTER OF CHAIRMAN JAMES D ROBINSON III ARE STEPPING DOWN IN THE WAKE OF THE BOARD'S DECISION TO KEEP MR ROBINSON IN HIS POST RAWLEIGH WARNER JR THE LONGTIME OUTSIDE DIRECTOR WHO LED THE EFFORT TO OUST MR ROBINSON RESIGNED TUESDAY THE DAY AFTER THE BOARD CHOSE TO NAME THE COMPANY'S PRESIDENT HARVEY GOLUB AS CHIEF EXECUTIVE AND RETAIN MR ROBINSON AS CHAIRMAN FOUR MONTHS AGO THE BOARD MOVED TO FIND A SUCCESSOR TO MR ROBINSON AFTER DIRECTORS SURPRISED THE CHAIRMAN WITH DEMANDS FOR AN IMMEDIATE SUCCESSION PLAN JOSEPH H WILLIAMS CHAIRMAN AND CHIEF EXECUTIVE OF WILLIAMS COS ALSO NOTIFIED THE COMPANY YESTERDAY THAT HE WOULDN'T SEEK REELECTION AFTER THOUGHTFUL CONSIDERATION OF THE EVENTS THAT TRANSPIRED AT MONDAY'S BOARD MEETING AND THE VERY STRONG DISSENT I REGISTERED I BELIEVE IT IS INAPPROPRIATE TO CONTINUE TO SERVE AS A MEMBER OF THE BOARD MR WILLIAMS SAID IN A LETTER TO MR ROBINSON HE COULDN'T BE REACHED FOR COMMENT JOHN J BYRNE CHAIRMAN OF FUND AMERICAN COS WHO WAS ALSO SAID TO BE AGAINST MR ROBINSON SAID THROUGH A SPOKESMAN THAT HE WON'T SEEK REELECTION TO HIS BOARD POST IN APRIL AN AMERICAN EXPRESS SPOKESMAN SAID MR BYRNE NOTIFIED THE COMPANY IN NOVEMBER THAT HE WOULDN'T SEEK REELECTION AT APRIL'S ANNUAL MEETING BUT THE COMPANY DIDN'T DISCLOSE HIS DECISION UNTIL YESTERDAY THE RESIGNATIONS REFLECT THE FALLOUT FROM THE BOARDROOM BATTLE OVER THE SUCCESSION PLAN CONCERNED ABOUT THE DIRECTION OF THE COMPANY AND DISENCHANTED WITH MR ROBINSON'S HANDLING OF ITS PROBLEMS SEVERAL OUTSIDE BOARD MEMBERS ARGUED THAT THE COMPANY NEEDED A CLEAN BREAK WITH ITS PREVIOUS MANAGEMENT BUT MR ROBINSON WOOED INDIVIDUAL BOARD MEMBERS AND ULTIMATELY RECEIVED 15 OF 19 VOTES ON A SLATE OF MANAGEMENT CHANGES INCLUDING RETAINING MR ROBINSON AS CHAIRMAN AND NAMING MR GOLUB CHIEF EXECUTIVE THE BOARD THEN ELECTED TO RALLY BEHIND MR GOLUB BY CASTING A UNANIMOUS TALLY IN A SECOND VOTE WITH MOST OF THE DISSIDENTS STEPPING DOWN MR ROBINSON NOW APPEARS TO BE SOLIDIFYING HIS HOLD ON THE COMPANY'S BOARD IT'S LIKELY THAT THE BOARD WON'T REPLACE THE DIRECTORS I FOUGHT THE GOOD FIGHT AND I LOST MR WARNER SAID IN A BRIEF INTERVIEW YESTERDAY I WAS AT ODDS WITH THE BOARD SO IT WAS APPROPRIATE THAT I SHOULD STEP DOWN MR WARNER TOLD BOARD MEMBERS AT THE MEETING MONDAY THAT HE WOULD RESIGN AFTER THEY VOTED TO KEEP MR ROBINSON AS CHAIRMAN A PERSON FAMILIAR WITH THE BOARD'S DELIBERATIONS SAID A NUMBER OF BOARD MEMBERS ASKED HIM TO STAY AND HE SAID HE WOULD SLEEP ON IT ON TUESDAY MR WARNER RESIGNED IN A LETTER TO MR ROBINSON MR ROBINSON RESPONDED IN A FACSIMILE LETTER TO MR WARNER YESTERDAY SAYING THAT HE ACCEPTED THE RESIGNATION WITH REGRET MR WARNER'S TENURE AS A DIRECTOR WAS TO EXPIRE IN APRIL DIRECTOR RICHARD M FURLAUD SPEAKING FOR THE BOARD SAID THE RESIGNATIONS DON'T REFLECT FISSURES ON THE BOARD I DON'T THINK THE BOARD IS BREAKING APART HE SAID IN AN INTERVIEW YESTERDAY HE ADMITTED THERE WERE HEATED DISCUSSIONS AT MONDAY'S BOARD MEETING AND SAID CERTAINLY THERE WAS DISAGREEMENT ON KEEPING MR ROBINSON MR FURLAUD SUGGESTED THAT THE BOARD WOULDN'T REPLACE THE THREE DIRECTORS AT LEAST NOT IMMEDIATELY WE HAVE A PRETTY BIG BOARD HE SAID THE THREE DEPARTURES WILL BRING THE BOARD DOWN TO 16 MEMBERS 14 OF WHOM ARE OUTSIDE DIRECTORS MR FURLAUD SAID HE DIDN'T EXPECT ADDITIONAL RESIGNATIONS THE BOARD WILL MEET IN FEBRUARY TO PUT FORTH ITS SLATE OF DIRECTORS AND HAS NO NEW NAMES TO RECOMMEND AT THIS TIME YESTERDAY WALL STREET CONTINUED TO EXPRESS DISAPPOINTMENT WITH THE DECISION TO RETAIN MR ROBINSON AND WITH THE PROBLEMS AT THE COMPANY'S SHEARSON LEHMAN BROTHERS INC SUBSIDIARY AMERICAN EXPRESS SHARES CLOSED AT 23 DOWN 875 CENTS THE STOCK IS DOWN MORE THAN 10 FROM ITS CLOSE OF 25625 FRIDAY BEFORE THE COMPANY ANNOUNCED THE MANAGEMENT CHANGES AND WEAKERTHANEXPECTED EARNINGS PETER PAE CONTRIBUTED TO THIS ARTICLE 9301280134 930128 TECHNOLOGY & HEALTH CONSORTIUM TO STUDY FIBEROPTIC NETWORKS WASHINGTON THE DEFENSE DEPARTMENT'S ADVANCED RESEARCH AGENCY FORMED A CONSORTIUM OF EIGHT LEADING TELECOMMUNICATIONS COMPUTER AND RESEARCH ORGANIZATIONS TO STUDY FIBEROPTIC INFORMATION HIGHWAYS THE GROUP LED BY BELL COMMUNICATIONS RESEARCH CORP THE RESEARCH ORGANIZATION FOR THE SEVEN REGIONAL BELL TELECOMMUNICATIONS COMPANIES WILL BUILD A WORKING PROTOTYPE OF AN ALL FIBEROPTIC TELECOMMUNICATIONS NETWORK THAT WILL BE USED TO TEST NEW TECHNOLOGIES PHONE COMPANIES AND CABLE OPERATORS INCREASINGLY ARE USING OPTICAL FIBERS HAIRTHIN STRANDS OF GLASS THAT CAN TRANSPORT VAST QUANTITIES OF VOICE DATA AND VIDEO MESSAGES TO REPLACE COPPER WIRING IN THEIR NETWORKS FIBER OPTICS ARE THE BACKBONE OF THE INFORMATION HIGHWAY ENVISIONED BY PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY AND THE EIGHT PARTICIPANTS WILL EACH CONTRIBUTE 7 MILLION TO THE OPTICAL NETWORKS TECHNOLOGY CONSORTIUM PARTICIPANTS IN ADDITION TO BELLCORE ARE COLUMBIA UNIVERSITY HEWLETTPACKARD CO GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO LAWRENCE LIVERMORE LABORATORIES NORTHERN TELECOM LTD ROCKWELL INTERNATIONAL CORP AND UNITED TECHNOLOGIES CORP'S RESEARCH CENTER 9301280133 930128 WHO'S NEWS UNITED BISCUITS NAMES CHADBOURNE TO REPLACE GARVIN AT KEEBLER UNIT LONDON UNITED BISCUITS HOLDINGS PLC SAID IT REPLACED THE PRESIDENT OF ITS CHICAGOBASED KEEBLER CO COOKIEANDCRACKER BAKER WITH THE HEAD OF ITS SIMILAR EUROPEAN OPERATION MCVITIE THE MOVE FOLLOWED PROBLEMS AT KEEBLER THAT DEPRESSED PROFIT AT THE BRITISH PARENT BY 17 IN THE MOST RECENT HALF YEAR AN ONGOING PRICE WAR AMONG US BAKERS HALVED KEEBLER'S PROFIT DURING THE PERIOD CAUSING UNITED BISCUITS TO CLOSE A KEEBLER FACTORY IN CALIFORNIA AND TRIM JOBS AT KEEBLER'S HEAD OFFICE AT A COST OF 10 MILLION 154 MILLION UNITED BISCUITS SAID KEEBLER PRESIDENT AND CHIEF EXECUTIVE OFFICER THOMAS M GARVIN AGREED TO RESIGN TO PURSUE OTHER INTERESTS HE HAS BEEN SUCCEEDED WITH IMMEDIATE EFFECT BY BRIAN CHADBOURNE WHO HAS BEEN MANAGING DIRECTOR OF MCVITIE SINCE 1989 MR CHADBOURNE WHO IS 40 YEARS OLD WILL BE SUCCEEDED AT MCVITIE BY HARTWIG CONZELMANN WHO HAS BEEN DIRECTOR OF MCVITIE'S CENTRAL AND SOUTHERN EUROPEAN OPERATIONS SINCE JOINING UNITED BISCUITS LAST YEAR 9301280132 930128 FINANCING BUSINESS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAID IN ST LOUIS THAT ITS LARGEST SUBSIDIARY SOUTHWESTERN BELL TELEPHONE CO IS CALLING 150 MILLION OF 9 1/4 BONDS DUE IN 2015 FOR REDEMPTION FEB 26 THE BONDS ISSUED IN 1975 ARE REDEEMABLE AT 10425 PLUS ACCRUED INTEREST THE UNIT PLANS TO REPLACE THE DEBT WITH LOWERCOST BORROWING 9301280131 930128 US PROBES REPORTS OF POSSIBLE STICKING OF TOYOTA THROTTLES BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS STEPPED UP ITS INVESTIGATION OF REPORTS THAT THROTTLES IN 813879 OF TOYOTA MOTOR CORP'S LATEMODEL CAMRY AND CELICA CARS COULD STICK MAKING IT DIFFICULT TO BRING THE VEHICLES TO A STOP A NHTSA SPOKESMAN SAID THE AGENCY COMPLETED ITS PRELIMINARY INVESTIGATION AND LAST MONTH BEGAN AN ENGINEERING ANALYSIS TO DETERMINE THE CAUSE OF THE PROBLEM NHTSA SAID IT IS AWARE OF 556 COMPLAINTS FROM CAMRY AND CELICA OWNERS REGARDING MALFUNCTIONING THROTTLES IN MODELS WITH 20 LITER ENGINES BUILT IN 1987 THROUGH 1989 THE AGENCY SAID THE COMPLAINTS INCLUDED REPORTS OF 30 ACCIDENTS THAT RESULTED IN ONE INJURY TOYOTA OFFICIALS ACKNOWLEDGE THAT THERE MAY BE SOME RESISTANCE WHEN OWNERS PRESS THE ACCELERATOR PEDAL WHICH MAY BE THE RESULT OF THE THROTTLE STICKING IN ITS CAMRY AND CELICA MODELS A TOYOTA SPOKESMAN SAID A RECALL ISN'T WARRANTED BUT THE COMPANY IS ENCOURAGING CAMRY AND CELICA OWNERS TO TAKE THEIR VEHICLES TO TOYOTA DEALERS IF THEY ARE EXPERIENCING THIS PROBLEM THE TOYOTA SPOKESMAN SAID THE COMPANY'S PRELIMINARY INVESTIGATION INDICATE THAT THE STICKING PROBLEM MAY BE A MAINTENANCE PROBLEM CAUSED BY VARNISH BUILDUP THE SPOKESMAN SAID MOST OF THE COMPLAINTS THE COMPANY HAS RECEIVED INDICATE THAT THE THROTTLE JAMMED IN THE MORNING WHEN OWNERS FIRST START UP THE ENGINE BUT THE PROBLEM APPARENTLY HAS OCCURRED WHEN THE VEHICLES WERE IN MOTION NHTSA SAID WHICH IS WHY IT HAS RECEIVED ACCIDENT REPORTS IN ITS PRELIMINARY INVESTIGATION THE NHTSA SPOKESMAN SAID IT APPEARS THAT THE THROTTLE COULD STICK AFTER THE FOOT WAS TAKEN OFF THE ACCELERATOR PEDAL AND WITH POWER STILL SURGING TO THE ENGINE IT WOULD TAKE LONGER FOR THE BRAKES TO STOP THE VEHICLE THIS IS THE SECOND TIME IN FIVE MONTHS THAT TOYOTA HAS BEEN THE SUBJECT OF A MAJOR SAFETY INVESTIGATION IN AUGUST TOYOTA WAS UNDER INVESTIGATION BECAUSE OF COMPLAINTS THAT THE DOOR LOCKS ON ITS 1987 THROUGH 1990 CAMRY CARS COULD JAM FOUR MONTHS LATER THE COMPANY RECALLED THE VEHICLES TO MAKE THE NECESSARY REPAIRS SEPARATELY GENERAL MOTORS CORP SAID IT WAS COOPERATING WITH A NHTSA PRELIMINARY INVESTIGATION OF 85000 1989 CHEVROLET CAPRICE PASSENGER CARS WITH 43 LITER ENGINES FOR A SIMILAR PROBLEM NHTSA SAID IT RECEIVED NINE COMPLAINTS OF A STICKING THROTTLE IN THE CAPRICE WHICH MAY HAVE BEEN THE CAUSE OF TWO ACCIDENTS RESULTING IN ONE DEATH AND NINE INJURIES THE COMPANY DECLINED TO COMMENT FURTHER 9301280130 930128 MERRILL LYNCH STUDY SAYS BOOMERS SKIMP ON RETIREMENT PLANS RESULTS WHICH INDICATE RATE OF SAVINGS IS INADEQUATE COULD BE A BOON FOR FIRM BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO IN AN APPARENT BID TO DRUM UP BUSINESS AMONG BABY BOOMERS UNVEILED A STUDY SHOWING THAT BOOMERS AREN'T SAVING NEARLY ENOUGH FOR RETIREMENT THE STUDY FINANCED BY MERRILL SAYS THE OLDEST BABY BOOMERS THOSE BORN BETWEEN 1946 AND 1956 CURRENTLY ARE SAVING JUST 338 OF THE RATE NEEDED TO MAINTAIN THEIR STANDARD OF LIVING AFTER AGE 65 A SCORE OF 100 INDICATES THAT BOOMERS ARE SAVING ENOUGH TO RETIRE COMFORTABLY MERRILL SAYS THE STUDY WAS BASED ON DATA SUPPLIED BY 3798 BABYBOOM HOUSEHOLDS NATIONWIDE MERRILL SAYS THE SURVEY WILL BE UPDATED ANNUALLY THE SURVEY PAINTS A VERY BLEAK PICTURE FOR BOOMERS UNLESS THEY INVEST MORE WISELY FOR RETIREMENT NOW WARNS B DOUGLAS BERNHEIM A PROFESSOR OF ECONOMICS AND BUSINESS POLICY AT PRINCETON UNIVERSITY WHO WROTE THE STUDY FOR MERRILL THE RESULTS WHILE WORRISOME COULD PROVE TO BE GOOD NEWS FOR MERRILL THE SURVEY UNDERSCORES A BID BY THE FIRM TO SNATCH MORE BROKERAGE BUSINESS FROM BOOMERS WHO NOW ACCOUNT FOR LESS THAN A THIRD OF ITS SEVEN MILLION CLIENTS MORE BOOMERS ARE FLOCKING TO DISCOUNT BROKERAGE FIRMS WHICH CHARGE LESS THAN MERRILL BECAUSE THEY DON'T OFFER INVESTMENT ADVICE INDEED MERRILL PLANS TO HAVE ITS BROKERS USE THE SURVEY IN SALES PITCHES TO PROSPECTIVE CLIENTS THE SURVEY ALSO REFLECTS MERRILL'S LOBBYING DRIVE FOR LOOSER REGULATIONS ON INDIVIDUAL RETIREMENT ACCOUNTS WHICH MERRILL HAS ARGUED WOULD ENCOURAGE BOOMERS TO SAVE MORE IT IS VITALLY IMPORTANT THAT BABYBOOMER PRESIDENT CLINTON AND CONGRESS DEVISE POLICIES THAT ENCOURAGE ALL BABY BOOMERS TO SAVE AND INVEST WHILE THEY STILL HAVE TIME SAID JOHN L STEFFENS MERRILL'S BROKERAGE CHIEF THE SURVEY IS BASED ON A COMPUTER MODEL THAT CALCULATES HOW MUCH BABYBOOMER HOUSEHOLDS WITH VARYING INCOMES AND OTHER FEATURES NEED TO SAVE TO COMFORTABLY RETIRE FOR INSTANCE MERRILL SAYS A TYPICAL MARRIED COUPLE WITH JOINT EARNINGS OF 75000 AT AGE 35 WOULD NEED TO SAVE 483000 TO MAINTAIN THEIR LIVING STANDARD WHEN THEY RETIRE IF THEY HAD NO PENSION COVERAGE MERRILL APPEARS TO BE COUNTING ON INVESTORS COMING TO THE FIRM TO EXPLORE WAYS OF REACHING THOSE GOALS AMERICANS SAVED A TAD LESS THAN 5 OF THEIR 1991 AFTERTAX INCOME ONETHIRD THAT OF JAPAN ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MR BERNHEIM SAYS THE SURVEY RESULTS ASSUME A FUTURE REAL ANNUAL RATE OF RETURN OR GAINS MINUS INFLATION OF ABOUT 3 HE SAYS HIS RESULTS IF ANYTHING UNDERSTATE THE PROBLEM BECAUSE BOOMERS ARE LIVING LONGER THESE DAYS 9301280129 930128 DIVIDEND NEWS PRIMERICA CORP PRIMERICA CORP DECLARED A 3FOR2 SPLIT OF ITS SHARES AND A 20 INCREASE IN THE DIVIDEND THE SPLIT AND NEW DIVIDEND ARE BOTH PAYABLE FEB 26 TO SHARES OF RECORD FEB 8 PRIMERICA AN INSURANCE SECURITIES BROKERAGE AND FINANCIAL SERVICES COMPANY SAID IN NEW YORK THAT IT WAS THE SEVENTH CONSECUTIVE YEAR IN WHICH IT HAS INCREASED THE DIVIDEND THE DIVIDEND ON POSTSPLIT SHARES IS 16 CENTS A SHARE IT PREVIOUSLY WAS 20 CENTS A SHARE 9301280128 930128 CLINTON IS EXPECTED TO CONVENE A PANEL TO WORK ON OVERHAUL OF WELFARE SYSTEM BY MICHAEL K FRISBY AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SEEKING TO REGAIN SOME POLITICAL MOMENTUM WILL CONVENE A TASK FORCE SOON TO DEVELOP WAYS OF REFORMING THE NATION'S WELFARE SYSTEM MR CLINTON IS EXPECTED TO ASK THREE GROUPS THE NATIONAL GOVERNORS' ASSOCIATION NATIONAL CONFERENCE OF STATE LEGISLATURES AND THE AMERICAN PUBLIC WELFARE ASSOCIATION TO PARTICIPATE ON THE PANEL MR CLINTON ALSO APPEARED TO BE MOVING FORWARD ON HIS EFFORT TO FIND AN ATTORNEY GENERAL ON TUESDAY OFFICIALS ON CAPITOL HILL SAID THE PRESIDENT SPOKE WITH SEN JOSEPH BIDEN OF DELAWARE ABOUT THREE OR FOUR CANDIDATES IT WAS A CLEAR ATTEMPT BY THE PRESIDENT TO REACH OUT TO MR BIDEN WHO WASN'T CONSULTED BY MR CLINTON WHEN HE SELECTED ZOE BAIRD MR BIDEN IS THE CHAIRMAN OF THE SENATE JUDICIARY COMMITTEE VERMONT SEN PATRICK LEAHY IS SAID TO BE UNDER CONSIDERATION FOR THE JOB OF ATTORNEY GENERAL MR LEAHY WHO IS ON THE JUDICIARY COMMITTEE DECLINED TO COMMENT THROUGH A SPOKESMAN ON WHETHER HE HAD BEEN CONTACTED BY THE WHITE HOUSE MR LEAHY WOULD BE QUICKLY CONFIRMED BY HIS COLLEAGUES AND VERMONT'S DEMOCRATIC GOVERNOR COULD APPOINT HIS SUCCESSOR IN THE SENATE ANOTHER PERSON WHO IS SAID TO BE A CANDIDATE IS DREW DAYS III WHO WORKED AS AN ASSISTANT ATTORNEY GENERAL IN PRESIDENT CARTER'S JUSTICE DEPARTMENT DURING THE CAMPAIGN MR CLINTON PLEDGED TO END WELFARE AS WE KNOW IT AND SAID THAT WELFARE RECIPIENTS SHOULD BE GIVEN EDUCATION AND TRAINING FOR TWO YEARS AND THEN BE REQUIRED TO WORK BUT SINCE THEN SPECULATION HAS SWIRLED THAT THE ADMINISTRATION IS PUTTING THE POTENTIALLY DIVISIVE ISSUE ON THE BACK BURNER BECAUSE IT MUST PUT TOGETHER HEALTH CARE REFORM LEGISLATION AND AN ECONOMIC STIMULUS PACKAGE YESTERDAY MR CLINTON CONTINUED TO WRESTLE WITH HIS ECONOMIC PACKAGE BEFORE A MEETING WITH CAPITOL HILL DEMOCRATS WHO SHAPE ECONOMIC POLICY THE PRESIDENT SAID HE HASN'T YET DECIDED WHETHER TO PROPOSE A CONSUMPTION TAX AS SOME OF HIS ECONOMIC ADVISERS SUGGEST ASKED IF HE COULD CUT THE DEFICIT BY 145 BILLION WITHOUT THE TAX MR CLINTON REPLIED I DON'T KNOW THE ANSWER TO THAT WE'RE WORKING ON IT DURING HER CONFIRMATION HEARING DONNA SHALALA SECRETARY OF HEALTH AND HUMAN SERVICES WAS CRITICIZED BY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN FOR NOT PLACING GREATER EMPHASIS ON WELFARE REFORM IN HER COMMENTS THE NEW YORK DEMOCRAT WAS A PRIME SPONSOR OF THE 1988 WELFARE REFORM LAW FOR WEEKS MR CLINTON'S POLITICAL ADVISERS HAVE URGED HIM TO FOCUS ON WELFARE REFORM IN THEIR VIEW MR CLINTON HAS DRIFTED FROM HIS CAMPAIGN MESSAGE IN RECENT WEEKS AND PAID A POLITICAL PRICE HE HAS APPEARED TO SHIFT ON CERTAIN ISSUES SUCH AS THE TREATMENT OF HAITIAN REFUGEES AND A MIDDLECLASS TAX CUT WELFARE REFORM HOWEVER IS SEEN AS A WINNING ISSUE FOR MR CLINTON BECAUSE HIS APPROACH EMPHASIZES THAT GOVERNMENT IS WILLING TO HELP CITIZENS TO A POINT BEYOND WHICH THEY MUST HELP THEMSELVES AT A MEETING LAST WEEKEND THAT WAS HEADED BY THOMAS MACK MCLARTY THE WHITE HOUSE CHIEF OF STAFF POLITICAL ADVISERS ONCE AGAIN URGED MR CLINTON TO TAKE STEPS TO FOCUS ON WELFARE REFORM PERHAPS AT LEAST TO DROWN OUT SOME OF THE CRITICISM OF OVER HIS EFFORT TO OVERTURN THE BAN ON HOMOSEXUALS IN THE MILITARY SOME LIBERAL DEMOCRATS HAVE OPPOSED MR CLINTON'S WELFARE PROPOSALS BUT THE PRESIDENT AND HIS AIDES HAVE USED THAT OPPOSITION TO FURTHER THE IMAGE OF MR CLINTON AS A DIFFERENT KIND OF DEMOCRAT THE WELFARE TASK FORCE WOULD HAVE ABOUT 10 MEMBERS UNDER CURRENT PLANS AND THE ANNOUNCEMENT COULD COME AS EARLY AS NEXT WEEK WHEN MR CLINTON MEETS WITH THE GOVERNORS A WHITE HOUSE OFFICIAL SAID THE TASK FORCE WILL BEGIN ITS WORK SOON SEPARATELY OFFICIALS CONFIRMED THAT MARY JO BANE THE COMMISSIONER OF THE NEW YORK STATE DEPARTMENT OF SOCIAL SERVICES IS THE LEADING CANDIDATE FOR ASSISTANT SECRETARY FOR CHILDREN AND FAMILIES A TOP HEALTH AND HUMAN SERVICES DEPARTMENT POST THAT WILL OVERSEE ANY CHANGES IN WELFARE MS BANE WHOSE CANDIDACY WAS FIRST REPORTED IN THE WASHINGTON POST IS AN EXPERT ON POVERTY AND WELFARE ISSUES AND HAS SUPERVISED A WELFARE REFORM EXPERIMENT CALLED THE CHILDREN ASSISTANCE PROGRAM IN UPSTATE NEW YORK MEANWHILE THE WHITE HOUSE HAS FOUND THAT DEFENSE DEPARTMENT APPOINTMENTS HAVE BECOME A PROBLEM JUST BEFORE THE INAUGURATION DEFENSE SECRETARY LES ASPIN SENT TO LITTLE ROCK A LIST OF HIS PICKS FOR TOP POSTS AS WELL AS BACKUP CHOICES BUT HIS LIST ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION WAS REJECTED AS LACKING DIVERSITY THE ABSENCE OF TOP DEPUTIES IS PROVING TO BE DIFFICULT THIS WEEK WITH THE PENTAGON AND THE WHITE HOUSE FOCUSING ON THE ISSUE OF HOMOSEXUALS IN THE MILITARY THEY HAVE A PROBLEM IN THAT THEY DON'T HAVE PEOPLE IN PLACE TO HELP THEM WITH THE PROBLEM BUT THEY CAN'T GET PEOPLE IN PLACE BECAUSE THEY'RE CONSUMED WITH THE PROBLEM OBSERVED ONE PENTAGON OFFICIAL IN ADDITION THE TREASURY IS CONTINUING ITS SEARCH FOR AN ASSISTANT SECRETARY FOR TAX POLICY IN RECENT DAYS TREASURY OFFICIALS HAVE BEGUN CONSIDERING A NUMBER OF ACADEMICS WHO ARE LESS LIKELY THAN PRACTICING ATTORNEYS TO BE CONSTRAINED BY THE ADMINISTRATION'S FIVEYEAR LOBBYING BAN ONCE THEY COMPLETE THEIR GOVERNMENT SERVICE TREASURY OFFICIALS ARE EXPECTED TO TALK ABOUT THE JOB TODAY WITH MARTIN GINSBURG A GEORGETOWN UNIVERSITY LAW PROFESSOR HIS WIFE US APPEALS COURT JUDGE RUTH GINSBURG HAS BEEN MENTIONED AS A POSSIBLE CHOICE FOR SOLICITOR GENERAL AN UNEXPECTED NEW VACANCY IN A TOP SCIENCE POST WILL HAVE TO BE FILLED BY MR CLINTON WALTER MASSEY DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION SAID HE IS LEAVING LESS THAN TWO YEARS INTO HIS SIXYEAR TERM MR MASSEY IS IN LINE FOR A SENIOR VICE PRESIDENT'S JOB AT THE UNIVERSITY OF CALIFORNIA MR MASSEY HAS MET SOME RESISTANCE IN EFFORTS TO MOVE THE INDEPENDENT AGENCY WHICH WITH ITS 3 BILLIONAYEAR BUDGET IS THE BIGGEST FUNDING SOURCE FOR BASIC NONHEALTH RESEARCH AT UNIVERSITIES TOWARD MORE INDUSTRIAL RESEARCH 9301280127 930128 CORPORATE FOCUS WALGREEN AFTER LONG GROWTH RAISES SOME DOUBTS SLOWING DRUG PRICE RISES OTHER PROBLEMS STIR SKEPTICISM ON WALL STREET BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL DEERFIELD ILL WALGREEN CO HAS BECOME THE NATION'S LEADING DISCOUNT DRUGSTORE CHAIN WITH A SIMPLE PRESCRIPTION FOR SUCCESS A TOPNOTCH PHARMACY A STATEOFTHEART COMPUTER NETWORK SENDS PRESCRIPTION DRUG INFORMATION TO ALL OF ITS 1761 STORES SO THAT A CUSTOMER IN SAY BOSTON CAN REFILL HIS ALLERGY MEDICINE WHILE VACATIONING IN COLORADO SPRINGS A LARGE CHUNK OF WALGREEN'S CAPITAL SPENDING PROJECTED AT 200 MILLION THIS YEAR HELPS UPDATE THE SYSTEM AND IN SOME MARKETS WALGREEN OFFERS MAILORDER AND DRIVEUP PHARMACY SERVICE LOYAL PHARMACY CUSTOMERS HELP BUILD STORE TRAFFIC AND BUSINESS IN EACH OF THE PAST FIVE FISCAL YEARS ENDED AUG 31 WALGREEN HAS RECORDED DOUBLEDIGIT SALES AND EARNINGS GAINS OF AS MUCH AS 14 AND 25 RESPECTIVELY PRESCRIPTIONS NOW ACCOUNT FOR 37 OF WALGREEN'S SALES UP FROM 25 FIVE YEARS AGO NO WONDER WALL STREET FOR YEARS HAS BEEN BULLISH ON THE COMPANY'S PROSPECTS AND ITS STOCK WHICH CLIMBED TO A 52WEEK HIGH OF 4450 JAN 4 SO WHAT EXPLAINS WHY WALL STREET SUDDENLY HAS TURNED A BIT COOL TO WALGREEN SIMPLE CONCERN OVER ITS PHARMACY BUSINESS PRESCRIPTIONDRUG PRICES WHICH CLIMBED 10 IN 1991 AND 9 EARLY LAST YEAR HAVE SLOWED THEIR RISE TO ABOUT A 6 ANNUAL INCREASE IN RECENT MONTHS ANALYSTS ESTIMATE PRICEINCREASE TRENDS HAVE SLOWED AND UNDER THE CLINTON ADMINISTRATION WE WOULD EXPECT PRICE INCREASES IN PHARMACEUTICALS TO CONTINUE TO COME UNDER SCRUTINY SAYS KIMBERLY K WALIN AN ANALYST WITH SHEARSON LEHMAN BROTHERS SAMESTORE SALES FOR DRUGSTORE OPERATORS COULD SLOW A BIT AS A RESULT SHE ASSERTS AT THE SAME TIME MORE HEALTH MAINTENANCE ORGANIZATIONS AND INSURANCE COMPANIES ARE PICKING UP THE TAB FOR PRESCRIPTION DRUGS THIS MEANS LOWER PROFITS FOR DRUGSTORES AS THESE THIRDPARTY PAYERS PUT A LIMIT ON WHAT THEY'LL PAY DRUGSTORES AT WALGREEN'S GROSS PROFIT MARGINS ON THESE TRANSACTIONS ARE ABOUT 25 DOWN FROM ABOUT 30 TO 35 FOR RETAIL PRESCRIPTIONS ANALYSTS SAY WALGREEN ALSO FACES STIFFENING COMPETITION FROM SUCH RIVALS AS WALMART STORES INC ECKERD DRUG CO AND RITE AID CORP WHICH PROBABLY WILL CONTINUE TO PRESSURE WALGREEN'S PROFIT MARGINS ALL THESE FACTORS COUPLED WITH A HUNCH THAT WALGREEN STOCK PEAKED RECENTLY AT 22 TIMES PROJECTED FISCAL 1993 EARNINGS HAVE PROMPTED SOME ANALYSTS TO DOWNGRADE THE STOCK SLIGHTLY FOR INSTANCE DONALD HULTGREN AN ANALYST WITH RAYMOND JAMES & ASSOCIATES THIS MONTH LOWERED WALGREEN TO A HOLD FROM A BUY AS A RESULT WALGREEN SHARES HAVE DROPPED FROM THE JAN 4 HIGH CLOSING YESTERDAY AT 39875 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR ITS PART WALGREEN HAS NO PLANS TO SLOW THE GROWTH OF ITS PRESCRIPTIONDRUG BUSINESS ITS LONGTERM PLAN CALLS FOR PHARMACIES TO CONTRIBUTE HALF OF ITS SALES POSSIBLY BY FISCAL 2000 THAT GROWTH REFLECTS CHANGING DEMOGRAPHICS AMERICANS ARE MORE HEALTHCONSCIOUS AND THUS MORE WILLING TO FILL THEIR PRESCRIPTIONS A RISING NUMBER OF NEW DRUGS AS WELL AS THE AGING POPULATION ALSO HELP ONLY THE CATHOLIC CHURCH HAS MORE MEMBERS THAN THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAID L DANIEL JORNDT WALGREEN PRESIDENT AND CHIEF OPERATING OFFICER AT THE COMPANY'S ANNUAL MEETING THIS MONTH WALGREEN OFFICIALS ACKNOWLEDGE THAT THE SALES GROWTH AT ITS PHARMACIES HAS SLOWED RECENTLY PHARMACY SALES GREW 14 IN FISCAL 1993'S FIRST QUARTER ENDED NOV 30 SLOWER THAN THE 17 RISE OF A YEAR EARLIER AND THE 20PLUS GROWTH RECORDED FOR 39 CONSECUTIVE QUARTERS THROUGH THE FIRST HALF OF FISCAL 1991 ADDRESSING ANALYSTS' CONCERNS MR JORNDT ARGUES THAT THE CLINTON ADMINISTRATION IN A BID TO CORRAL RISING HEALTHCARE COSTS WILL EXAMINE PRIMARILY LABORATORY AND HOSPITAL FEES LESS THAN 5 OF TOTAL HEALTH CARE DOLLARS GO TO PRESCRIPTION DRUGS HE SAID ADDING I PERSONALLY DON'T THINK PRESCRIPTION PRICE INFLATION WILL GO MUCH LOWER WALGREEN IS SEEKING TO SNARE MORE PHARMACY BUSINESS FROM LARGE COMPANIES UNIONS AND OTHERS THROUGH HEALTHCARE PLUS ITS FASTGROWING MAILORDER BUSINESS A NEW 15 MILLION ORLANDO FLA FACILITY CAN FILL 5000 PRESCRIPTIONS A DAY AND HAS THE CAPACITY TO HANDLE AS MANY AS 15000 WHILE CUSTOMERS INCREASINGLY ARE DEMANDING MAILORDER SERVICE THE GROSS PROFIT MARGIN OF SUCH A BUSINESS IS ABOUT HALF THAT OF RETAIL PRESCRIPTIONS STILL WALGREEN'S UNIT SALES PROBABLY WILL BENEFIT FROM THE CHANGING MIX ANALYSTS ESTIMATE THAT ABOUT 40 TO 50 OF PRESCRIPTION DRUG ORDERS ARE COVERED BY THIRDPARTY PAYERS AND THAT COULD RISE AS HIGH AS 60 BY 1995 WALGREEN'S FARREACHING COMPUTER SYSTEM AND GROWING MAILORDER BUSINESS MAKE IT A MORE APPEALING CHOICE THAN MOST OF ITS COMPETITORS THE BIGGER YOU ARE THE MORE YOU CAN CASH IN ON REALLY BIG CONTRACTS SAYS ANALYST ALEXANDER P PARIS SR OF BARRINGTON RESEARCH ASSOCIATES ADDITIONALLY WALGREEN'S EXTENSIVE STORE BASE IN 29 STATES AND PUERTO RICO HELPS IT BETTER COMPETE FOR NATIONAL ACCOUNTS THIS YEAR IT PLANS TO ADD 130 DRUGSTORES AND EXPECTS TO REACH 3000 STORES BY FISCAL 2000 GROWTH WILL BE INTERNAL COMPANY OFFICIALS INSIST THEY HAVE NO ACQUISITION PLANS FOR AT LEAST THE NEXT 10 YEARS POTENTIAL TAKEOVER CANDIDATES DON'T HAVE THE RIGHT LOCATIONS SAYS MR JORNDT WE ALWAYS SAY WE WANT TO BE ON MAIN STREET IN MIDDLETON RI IN FACT IT PLANS TO SET UP SHOP ONWHERE ELSE THE CORNER OF WEST MAIN STREET AND EAST MAIN STREET AGAINST STIFFER COMPETITION WALGREEN'S REMEDY IS TO KEEP PRICES AT THE LOW END OF THE MARKET WHERE IT SIMPLY CAN'T AFFORD TO UNDERCUT THE COMPETITION SOME CONSUMERS WILL PAY A LITTLE MORE FOR OUR CONVENIENCE CONTENDS MR JORNDT TWICEAWEEK CIRCULARS FEATURING 200 DISCOUNTED ITEMS ALSO HELP THE CHAIN I DON'T THINK THE COMPETITION WILL HURT OUR GROWTH HE ADDS WALGREEN HELPS OFFSET ITS NARROWING PROFIT MARGINS WITH STRICT COSTCONTROL EFFORTS ITS CASHREGISTER SCANNING DEVICES FOR EXAMPLE RECENTLY REVEALED THAT A SIXFOOTLONG PET PRODUCTS DISPLAY AT A STORE NEAR AN ORLANDO WATER PARK GROSSED A MERE 147 IN TWO WEEKS WE DISCOVERED THAT NO ONE BRINGS FIDO TO WET 'N WILD MR JORNDT SAID A MORE SOPHISTICATED SYSTEM TO BE ALMOST COMPLETELY INSTALLED BY YEAR END WILL TRACK EVERY ITEM FROM THE TIME IT'S ORDERED TO WHEN IT'S SOLD THE SYSTEM IS EXPECTED EVENTUALLY TO PARE 200 MILLION IN INVENTORY COSTS DRUG OPERATORS RITE AID CORP ECKERD DRUG CO ARBOR DRUGS INC HOOKSUPERRX INC AND REVCO DS INC AND KMART CORP 9301280126 930128 INTERNATIONAL MERCEDES TO SHAKE UP ITS PRODUCT POLICY CAR MAKER PLANS COST CUTS BROADER MODEL RANGE ANALYSTS ARE SKEPTICAL BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL MARKING A FUNDAMENTAL CHANGE IN DIRECTION MERCEDESBENZ AG EMBARKED ON A PLAN TO EMBRACE LEAN MANUFACTURING BROADEN ITS RANGE OF MODELS AND MAKE ITS CARS MORE COSTCOMPETITIVE THE MAKER OF SOME OF THE WORLD'S MOST PRESTIGIOUS LUXURY CARS WHICH HAS BEEN FEELING UNACCUSTOMED PRESSURE LATELY THIS WEEK OUTLINED WHAT IT DESCRIBED AS A STRATEGIC REALIGNMENT OF ITS PRODUCT POLICY ESSENTIALLY MERCEDES WANTS TO ADD SOME DIFFERENT TYPES OF CARS TO ROUND OUT ITS OFFERINGS THE COMPANY SAID THE REALIGNMENT WILL INCLUDE THE ADDITION OF A MULTIPURPOSE VEHICLE AKIN TO A MINIVAN AND IT WANTS TO ADD A SMALL CITY CAR FOR TOOLING AROUND TOWN AND A FOURWHEELDRIVE LEISURE CAR THAT WOULD COMPETE WITH RANGE ROVERS AND THE LIKE THE REALIGNMENT ALSO WILL INVOLVE CONTINUED EFFORTS TO CUT COSTS INDUSTRY ANALYSTS SAID THE PLAN DISCLOSED IN COMMENTS TO JOURNALISTS BY DEPUTY CHAIRMAN HELMUT WERNER WILL REQUIRE A CHANGE OF CULTURE AT ONE OF GERMANY'S LEADING INSTITUTIONS SOME OF THEM SUGGESTED THAT PULLING IT OFF WILL POSE THE GREATEST CHALLENGE FOR MR WERNER WHO IS TO TAKE THE TOP JOB WHEN CHAIRMAN WERNER NIEFER STEPS DOWN THIS YEAR ANALYSTS SAID MERCEDES IS FINALLY RESPONDING TO THE CHALLENGE MOUNTED IN RECENT YEARS BY JAPANESE AUTO MAKERS A POINT THAT A MERCEDES SPOKESMAN ACKNOWLEGED MOST OTHER EUROPEAN AUTO MAKERS HAVE RESPONDED MORE QUICKLY LAST YEAR ARCHRIVAL AND PERENNIAL UNDERDOG BAYERISCHE MOTOREN WERKE AG OUTPRODUCED AND OUTSOLD MERCEDES FOR THE FIRST TIME ONE OF THE MOST SUCCESSFUL MOST ENTRENCHED COMPANIES IN EUROPE IS SAYING THAT CONDITIONS HAVE CHANGED AND WE MUST TOO SAYS KARL LUDVIGSEN A LONDONBASED INDUSTRY CONSULTANT THE EUROPEANS ARE REALIZING THAT THEY WON'T BE PROTECTED FOREVER AND THEY CAN'T KEEP PUTTING PRICES UP AND UP AND MAKING CARS BIGGER AND BIGGER AUTO EXPERTS POINT TO THE MUCHCRITICIZED TOPOFTHELINE MERCEDES SCLASS CAR WHICH MADE ITS DEBUT IN 1991 AS A SYMBOL OF WHAT HAS BEEN WRONG AT MERCEDESBENZ THE CAR WAS WIDELY CRITICIZED AS TOO BIG TOO HEAVY AND TOO EXPENSIVE SCLASS PRICES IN GERMANY CURRENTLY RANGE FROM 82000 MARKS TO 222000 MARKS 52000 TO 139000 THE CAR LAUNCHED IN THE FACE OF COMPETITION FROM TOYOTA'S LEXUS A MUCH LOWERCOST COMPETITOR HAS BEEN A BIG DISAPPOINTMENT LEXUS HAS BEEN LEADING THE MARKET DOWN IN PRICE EXPECTATIONS SAYS CHRISTOPHER R WILL AN AUTO ANALYST FOR LEHMAN BROTHERS IN LONDON IT IS NO LONGER TRUE THAT IF YOU WANT A LUXURY CAR YOU HAVE TO PAY GERMAN PRICES WITHOUT MENTIONING THE SCLASS MR WERNER TOOK A SWIPE AT OVERENGINEERING OF MERCEDES PRODUCTS OBSERVING THAT IT COULD LEAD TO OUTPRICING IN THE FUTURE HE SAID MERCEDES WILL ENGINEER NEW PRODUCTS WITH CLEARLY DEFINED COST AND SALE PRICE TARGETS AND WOULD ADOPT A MERCEDESSPECIFIC LEAN LOGIC' WHILE THAT APPROACH IS STANDARD IN MUCH OF THE REST OF THE WORLD CAR INDUSTRY IT REPRESENTS A SHARP CHANGE OF CULTURE FOR MERCEDES HISTORICALLY MERCEDES COULD PRICE THINGS ON A COSTPLUS BASIS AND NOW THOSE DAYS ARE GONE SAYS PETER SCHMIDT OF AUTO INDUSTRY DATA LTD A BRITISH CONSULTING FIRM ADDS KEITH HAYES AUTO ANALYST FOR NOMURA RESEARCH INSTITUTE EUROPE IN LONDON IN GERMANY THE ENGINEER HAS BEEN AT THE PINNACLE WHAT THEY'RE DOING NOW IS CHANGING THE CULTURE OF AN INSTITUTION AND IT WILL BE A VERY TOUGH MANAGEMENT TASK MERCEDES'S NEW APPROACH WILL FIRST SHOW UP IN THE PRICING OF THE NEW 190 COMPACT DUE OUT THIS SUMMER MR WERNER SAID HE VOWED THAT THE LEAST EXPENSIVE VERSION OF THE NEW MODEL WILL BE PRICED IN GERMANY AT 40400 MARKS THE SAME PRICE AS FOR THE CHEAPEST VERSION OF THE OLD MODEL THE CAR HAD BEEN EXPECTED TO HAVE A PRICE OF ABOUT 45000 MARKS MR WERNER SAID THE LOWER PRICE REFLECTS A SIGNIFICANT REDUCTION IN INTERNAL COSTS INDUSTRY ANALYSTS SAID MERCEDES HAD LITTLE CHOICE BUT TO KEEP THE CAR'S PRICE DOWN TO HAVE AT LEAST THAT MUCH GOING FOR IT THE CAR IS WIDELY EXPECTED TO BE MUCH BULKIER THAN THE OLD 190 AND THAT APPARENTLY ISN'T WHAT CAR BUYERS WANT MR WERNER ALSO DISCLOSED THAT MERCEDES IS CONSIDERING BUILDING A NEW PRODUCTION PLANT IN A FOREIGN MARKET THOUGH HE DIDN'T OFFER ANY DETAILS BMW LAST YEAR DECIDED TO BUILD A CAR ASSEMBLY PLANT IN SOUTH CAROLINA A MOVE THAT INDUSTRY EXPERTS HAILED NOTING THE HIGH MANUFACTURING COSTS IN GERMANY MERCEDES SAID ITS COSTCUTTING EFFORTS WILL ALSO INCLUDE MORE OUTSIDE PARTS PURCHASES A SPOKESMAN SAID ABOUT 50 OF THE PARTS THAT GO INTO MERCEDES CARS TODAY ARE MADE IN HOUSE BUT THAT MERCEDES EXPECTS TO REDUCE THE PROPORTION TO 45 IN THE NEXT FEW YEARS THE COMPANY ALSO IS REORGANIZING ITS MANUFACTURING AROUND PERFORMANCE CENTERS WHICH IT DESCRIBED AS RELATIVELY SMALL UNITS OF WORKERS WITH BROAD RESPONSIBILITIES FOR PRODUCTION PARTS LOGISTICS MAINTENANCE AND QUALITY CONTROL MERCEDES SAID PILOT PROJECTS HAVE RESULTED IN COST SAVINGS OF AS MUCH AS 30 MR WERNER SAID MERCEDES NEEDS RIGOROUS PRUNING OF ITS ADMINISTRATIVE FUNCTIONS HE SAID THE COMPANY RECENTLY REDUCED THE NUMBER OF LEVELS IN ITS MANAGEMENT HIERARCHY TO FOUR FROM SIX AND PREDICTED A FURTHER CUT IN HEADQUARTERS STAFFING THOUGH NO SPECIFICS WERE GIVEN LAST YEAR MERCEDES CUT ITS WORKFORCE IN GERMANY BY 13000 TO ABOUT 180000 THE COMPANY EXPECTS FURTHER REDUCTIONS OF 15000 OVER THE NEXT TWO YEARS OR SO STRICTLY THROUGH ATTRITION MR WERNER ACKNOWLEDGED THAT DESPITE PRODUCTION AND STAFFING CUTS LAST YEAR THE SITUATION WITH REGARD TO COSTS AND PROFITS WAS STILL UNSATISFACTORY HE SAID INITIAL ESTIMATES PUT MERCEDES'S REVENUE FOR LAST YEAR AT 66 BILLION MARKS 4182 BILLION DOWN FROM 1991'S 671 BILLION MARKS HE DIDN'T MAKE A PROFIT ESTIMATE HE FORECAST THAT THE EUROPEAN CAR MARKET WILL DECLINE ABOUT 7 TO AROUND 13 MILLION UNITS THIS YEAR LED BY A 15 DECLINE IN GERMANY EUROPE'S BIGGEST MARKET 9301280125 930128 DIVIDEND NEWS DIEBOLD INC DIEBOLD INC DECLARED A 3FOR2 STOCK SPLIT IN THE FORM OF A STOCK DIVIDEND PAYABLE FEB 26 TO STOCK OF RECORD FEB 10 SHAREHOLDERS WILL RECEIVE ONE ADDITIONAL SHARE FOR EACH TWO SHARES HELD ON THE RECORD DATE THE CANTON OHIO CONCERN MAKES AUTOMATED TELLER MACHINES AUTOMATED FUEL SYSTEMS VIDEO DISPENSING MACHINES AND SECURITY SYSTEMS DIEBOLD INC MAKES AUTOMATED TELLER MACHINES VIDEO DISPENSING MACHINES AND SECURITY SYSTEMS AN ITEM IN YESTERDAY'S DIVIDEND NEWS COLUMN INCORRECTLY INCLUDED AUTOMATED FUEL SYSTEMS AMONG DIEBOLD'S BUSINESSES THAT BUSINESS HAS BEEN SOLD 9301280124 930128 DIVIDEND NEWS INCOME OPPORTUNITY REALTY TRUST INCOME OPPORTUNITY REALTY TRUST DALLAS SAID IT RESUMED PAYMENT OF ITS QUARTERLY DIVIDEND OF 10 CENTS A SHARE CITING THE INCREASINGLY POSITIVE CASH FLOW OF THE TRUST'S REAL ESTATE PORTFOLIO AS A WHOLE AND THE SATISFACTORY LEVEL OF CASH RESERVES THE REAL ESTATE INVESTMENT TRUST SAID IT WILL PAY THE DIVIDEND MARCH 1 TO HOLDERS OF RECORD FEB 15 THE TRUST LAST PAID A DISTRIBUTION OF 36 CENTS A SHARE IN MAY 1991 THE CURRENT DIVIDEND WILL BE PAID OUT OF OPERATING PROFIT IT SAID 9301280123 930128 BETHLEHEM STEEL HAD NARROWER LOSS IN FOURTH QUARTER BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL BETHLEHEM STEEL CORP REPORTED A NARROWED FOURTHQUARTER LOSS AND ANNOUNCED PLANS TO SALVAGE ITS TROUBLED STRUCTURALPRODUCTS BUSINESS THE LOSS OF 531 MILLION OR 65 CENTS A SHARE INCLUDED A GAIN OF 31 MILLION FOR THE REIMBURSEMENT OF A GOVERNMENT CONTRACT EXCLUDING THE GAIN THE LOSS OF 93 CENTS A SHARE WAS IN LINE WITH ANALYSTS' EXPECTATIONS BETHLEHEM HAD A LOSS OF 6381 MILLION OR 847 A SHARE A YEAR EARLIER WHICH INCLUDED A 575 MILLION RESTRUCTURING CHARGE SALES IN THE LATEST PERIOD FELL 34 TO 9904 MILLION FROM 103 BILLION BUT SHIPMENTS INCREASED 25 SEPARATELY THE BETHLEHEM PA STEELMAKER SAID ITS BOARD CONDITIONALLY APPROVED A PLAN TO MODERNIZE THE STRUCTURALSTEEL BUSINESS WHICH MAKES BEAMS USED MOSTLY FOR CONSTRUCTION ITS FATE HAD BECOME INCREASINGLY DOUBTFUL AS LOWCOST MINIMILLS EXPANDED IN THE MARKET THE COMPANY CALLED THE INVESTMENT SUBSTANTIAL BUT WOULDN'T DISCLOSE ITS SIZE BETHLEHEM HAS SAID SUCH CHANGES WOULD REQUIRE SEVERAL HUNDRED MILLION DOLLARS THE MODERNIZATION WHICH HAD BEEN EXPECTED WILL INCLUDE A NEW CASTER AND A SWITCH TO AN ELECTRIC FURNACE THE TYPE USED BY MINIMILLS FROM BLAST FURNACES THE COMPANY SAID THE IMPROVEMENTS WILL DEPEND ON A BUSINESS PLAN FOR SUSTAINED PROFITABILITY AND A NEW LABOR AGREEMENT WHICH IT EXPECTS TO REACH BY MARCH 1 THOUGH IT WILL BEGIN IMPLEMENTING THE PLAN IMMEDIATELY BETHLEHEM CLEARLY PLANS A GRADUAL CHANGE THE COMPANY EXPECTS THE MODERNIZATION TO TAKE PLACE IN SIX STAGES OVER SIX YEARS ANALYSTS SAID THE DECISION POSES BIG RISKS FOR BETHLEHEM I'M NOT SURE THEY SHOULD DO THIS SAID CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES IF THEY'RE GOING TO SPEND THIS KIND OF MONEY AND BE A HIGHCOST PRODUCER IT MAKES NO SENSE BETHLEHEM ALSO SAID IT WILL BEGIN A 100 MILLION PROJECT AT ITS BURNS HARBOR IND PLANT USING PULVERIZED COAL TO REPLACE COKE MADE IN COKE OVENS WHICH HAVE HAD ENVIRONMENTAL PROBLEMS BETHLEHEM ALSO SPLIT TWO SMALL DIVISIONS ITS BETHFORGE FORGING AND CENTEC ROLLCASTING BUSINESSES INTO SEPARATE BUSINESS UNITS FOLLOWING SIMILAR CHANGES AT ITS TWO MAIN FLATROLLED STEEL MILLS THE FOURTHQUARTER LOSS WAS DUE TO LOWER PRICES WHICH DECLINED ABOUT 3 IN 1992 FROM 1991 HOWEVER BETHLEHEM SAID IT DETECTS A MODERATE RECOVERY AND FORECAST A SLIGHT INCREASE IN 1993 SHIPMENTS FOR ALL OF 1992 BETHLEHEM'S LOSS WAS 4493 MILLION OR 578 A SHARE INCLUDING A 250 MILLION NET CHARGE TO ADOPT TWO NEW ACCOUNTING STANDARDS IN 1991 THE STEELMAKER HAD A LOSS OF 767 MILLION OR 1041 A SHARE AFTER THE 575 MILLION CHARGE SALES IN 1992 FELL 72 TO 401 BILLION FROM 432 BILLION A YEAR EARLIER 9301280121 930128 REMY COINTREAU PRETAX PROFIT PARIS FRENCH SPIRITS GROUP REMY COINTREAU SA CONFIRMED A PREVIOUS PREDICTION OF A 25 RISE IN PRETAX GROUP PROFIT FOR THE FISCAL FIRST HALF ENDED SEPT 30 THE PRETAX GROUP PROFIT WAS 1038 MILLION FRANCS 195 MILLION COMPARED WITH 1013 MILLION FRANCS IN THE YEAREARLIER PERIOD BUT THE COMPANY SAID THAT GIVEN THE CURRENT ECONOMIC CLIMATE IT DOESN'T EXPECT TO BE ABLE TO MATCH LAST YEAR'S PROFIT FOR THE FULL YEAR THE GROUP'S PRETAX GROUP PROFIT WAS 4096 MILLION FRANCS FOR THE 19911992 YEAR ITS NET INCOME WAS 271 MILLION FRANCS FOR THE YEAR SALES FOR THE HALF DROPPED 16 TO 239 BILLION FRANCS REMY SAID THAT ITS SALES WOULD HAVE DECLINED BY ONLY 12 ON A COMPARABLE EXCHANGE RATE BASIS IN THE FIRST HALF OF THE 19921993 YEAR 9301280120 930128 OTC FOCUS NASDAQ SHARES TUMBLE LED BY TECHNOLOGIES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HIT BY SELLING IN LARGE TECHNOLOGY AND BIOTECHNOLOGY STOCKS THE OVERTHECOUNTER STOCK MARKET TUMBLED 926 POINTS OR 13 ITS BIGGEST ONEDAY POINT DROP SINCE JUNE THE SUDDEN FALL MARKED A SETBACK FOR THE NASDAQ MARKET WHICH HAS SOARED 22 SINCE OCTOBER ON FEVERISH DEMAND BY INDIVIDUAL AND INSTITUTIONAL INVESTORS FOR SMALL STOCKS TRADERS SAID THAT IF STRONG SELLING PERSISTS FOR SEVERAL DAYS IT WOULD INDICATE THAT THE OTC MARKET FINALLY HAS BEGUN THE CORRECTION THAT MANY MARKET ANALYSTS HAVE BEEN PREDICTING ALTHOUGH THE SELLING WASN'T A BLOOD BATH TRADERS PREDICT THAT PROFITTAKING WILL CONTINUE IN MANY OF THE LEADING NASDAQ STOCKS THE SELLERS ARE WHACKING THEM AND THIS IS GOING TO CARRY THROUGH FOR A COUPLE OF DAYS MAYBE UNTIL MONDAY SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE LATE RECOVERY THE NASDAQ COMPOSITE INDEX PLUNGED 13 TO 69790 FROM ITS ALLTIME HIGH OF 70716 REACHED ON TUESDAY THE INDEX FELL AS LOW AS 69484 BEFORE RECOVERING LATE IN THE DAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1639 TO 1073 TOTAL VOLUME WAS 2817 MILLION SHARES DOWN FROM TUESDAY'S 2963 MILLION THIS IS MORE THAN A ONEDAY SETBACK THIS IS A BREAK OF THE JANUARY UPTREND SAID PETER CANELO CHIEF MARKET STRATEGIST AT COUNTY NATWEST THERE WAS A LITTLE TOO MUCH GREED IN JANUARY AND NOW WE ARE GOING TO HAVE A LITTLE FEAR MR CANELO ADDED WE HAVEN'T YET BROKEN THE OCTOBER RALLY IN SMALL STOCKS BUT HE SAID THAT IF THE SELLOFF IN OTC STOCKS CONTINUES WITH THE NASDAQ INDEX FALLING 15 TO 20 POINTS IN THE NEXT FEW DAYS IT WILL MARK A HALT TO THE NASDAQ RALLY IF THAT HAPPENS THE MARKET COULD REACH A NEW SUPPORT LEVEL OF 670 TO 680 HE ADDED JERRY NEWMAN AN EQUITY TRADER AT COWEN & CO IN SAN FRANCISCO SAID THE DAY'S DECLINE WAS HEALTHY THESE STOCKS HAVE HAD A PHENOMENAL RIDE AND ARE SUSCEPTIBLE TO SOME SERIOUS PROFITTAKING MR NEWMAN ASSERTED INVESTORS HAVE VALUATION CONCERNS WITH STOCKS AT THIS LEVEL WE'RE GOING TO HAVE A COUPLE OF DAYS LIKE THIS TO TAKE SOME OF THE EXCESS OUT OF THE MARKET TECHNOLOGIES ARE JOLTED ALTHOUGH THE SELLING WAS BROADLY SPREAD ACROSS INDUSTRIES MANY OF THE LARGE TECHNOLOGY ISSUES THAT HAVE RISEN QUICKLY DURING THE PAST MONTH WERE HIT HARD THEY INCLUDED TWO GIANT MARKET LEADERS INTEL WHICH FELL 1 3/4 TO 112 5/8 AND MICROSOFT WHICH DROPPED 1 3/4 TO 86 1/4 APPLE COMPUTER SLIPPED 1/2 TO 60 1/4 ADOBE SYSTEMS TUMBLED 1 7/8 TO 41 3/8 AND NOVELL SLID 1/4 TO 30 3/4 BIOTECH STOCKS WHICH HAVE BEEN SINKING FOR THE PAST FEW TRADING SESSIONS WERE KNOCKED DOWN BY A COMBINATION OF NEGATIVE TRENDS SAID JEFFREY CASDIN A BIOTECH ANALYST AT OPPENHEIMER MR CASDIN SAID THE BIOTECH STOCKS COULD BE RAPIDLY APPROACHING A BOTTOM SOON TUMBLING AFTER ENJOYING A SHORT RALLY IN THE AUTUMN AMGEN PLUMMETED 3 3/4 TO 60 SYNERGEN DROPPED 1 TO 55 3/4 AND CHIRON FELL 1 3/4 TO 48 3/4 MR CASDIN SAID COSTCONTAINMENT WORRIES HAVE BEEN HANGING OVER THE INDUSTRY FOR THE PAST YEAR AND PRESIDENT CLINTON'S APPOINTMENT OF HIS WIFE HILLARY RODHAM CLINTON TO SHAPE HIS HEALTHCARE PLAN HAS REINSTATED THOSE WORRIES I CALL IT THE HILLARY EFFECT HE SAID HER POSITION INDICATES THAT CLINTON IS DETERMINED TO COME UP WITH SOME CONCRETE PROPOSALS SOONER RATHER THAN LATER LIKE PUTTING A CAP ON HEALTHCARE SPENDING AND LIMITING THE USE OF EXPENSIVE DRUGS THE BIOTECH GROUP ALREADY HAS BEEN HURT BY NEGATIVE NEWS ON JAN 18 CENTOCOR DIVED 62 TO 6 5/8 WHEN THE COMPANY DISCLOSED MAJOR PROBLEMS WITH ITS MAIN PRODUCT CENTOXIN IT SUSPENDED CLINICAL TRIALS OF CENTOXIN WHICH IS DESIGNED TO TREAT SEPSIS A BLOOD INFECTION THE STOCK WAS UNCHANGED YESTERDAY AT 6 3/4 ON FRIDAY AMGEN STOCK CAME UNDER SELLING PRESSURE WHEN SG WARBURG ANALYST KEVIN WILSON DOWNGRADED HIS INVESTMENT RATING ON THE STOCK TO SELL FROM BUY AND ON TUESDAY RUMORS BEGAN TO SPREAD THAT SYNERGEN HAD UNFAVORABLE RESULTS OF ITS PHASE III CLINICAL TRIAL OF ITS LEAD PRODUCT ANTRIL ANTRIL IS INTENDED TO TREAT SEPSIS THE COMPANY HASN'T RELEASED THE TRIAL RESULTS WITH SYNERGEN THERE ARE ALWAYS RUMORS AND WORRIES BUT YOU HAVE TO BE SKEPTICAL WHEN A TRIAL ENDS IN THE MIDDLE OF NOVEMBER AND TWO MONTHS LATER THE COMPANY SAYS THEY ARE STILL LOOKING AT THE DATA MR CASDIN SAID MR CASDIN ALSO SAID A FLURRY OF PLANNED MEDICALRELATED STOCK OFFERINGS IS MAKING INVESTORS FLEE BIOTECH STOCKS SHAMAN PHARMACEUTICALS FELL TO 14 FROM ITS OFFERING PRICE OF 15 ON ITS FIRST TRADING DAY YESTERDAY THE COMPANY OFFERED THREE MILLION COMMON SHARES INCREASED FROM THE ORIGINALLY PLANNED 25 MILLION THROUGH UNDERWRITER LED BY SG WARBURG SECURITIES ADVANCED MAMMOGRAPHY SLIPPED 3/4 TO 7 1/4 AFTER JUMPING FROM ITS OFFERING PRICE OF 6 ON MONDAY THE COMPANY'S INTIAL PUBLIC STOCK OFFERING OF 13 MILLION SHARES WAS PRICED THROUGH LEAD UNDERWRITER DH BLAIR ELSEWHERE IN THE MARKET ANOTHER IPO DF&R RESTAURANTS WAS PRICED LATE YESTERDAY AT 14 A SHARE THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS THE BEFORD TEXAS RESTAURANT CHAIN OFFERED TWO MILLION COMMON SHARES AN INCREASE FROM THE ORIGINALLY PLANNED 19 MILLION SHARES PYRAMID TECHNOLOGY JUMPED 1 3/4 TO 15 AFTER THE SAN JOSE CALIF COMPANY REPORTED A PROFIT OF FOUR CENTS A SHARE FOR THE FIRST QUARTER ENDED THIS MONTH REVERSING A YEARAGO LOSS OF 156 A SHARE ANALYSTS AT DEAN WITTER REYNOLDS AND COWEN & CO UPGRADED RATINGS ON THE STOCK GOULD PUMPS SHED 2 7/8 TO 22 7/8 IT POSTED A LOSS OF TWO CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH EARNINGS FROM OPERATIONS OF 29 CENTS A SHARE LAST YEAR THE SENECA FALLS NY COMPANY RECORDED A RESTRUCTURING CHARGE OF 19 CENTS A SHARE IN THE LATEST QUARTER SLM INTERNATIONAL CLIMBED 1 1/4 TO 24 3/4 THE NEW YORKBASED COMPANY INTRODUCED A PRODUCT TO BE USED IN RECHARGING ALKALINE BATTERIES THE CORPORATION CLAIMED THE RECHARGER IS THE FIRST OF ITS KIND OTHER SIMILAR PRODUCTS IT SAID CAN ONLY BE USED ON NICKEL CADMIUM BATTERIES PROTOCOL SYSTEMS ADDED 1/2 TO 9 THE BEAVERTON ORE COMPANY POSTED EARNINGS FROM OPERATIONS OF 13 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH SIX CENTS A SHARE A YEAR AGO ITS SALES CLIMBED TO 95 MILLION FROM 64 MILLION SHARES OF DAMARK INTERNATIONAL OF BROOKLYN PARK MINN DECLINED 1/2 TO 7 1/2 ITS EARNINGS FELL TO SEVEN CENTS A SHARE IN THE FOURTH QUARTER FROM 12 CENTS A SHARE A YEAR EARLIER BEL FUSE JUMPED 2 TO 15 THE JERSEY CITY NJ ELECTRONIC PARTS MANUFACTURER SAID IT IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT PUT ITS 1992 EARNINGS AT 150 A SHARE IT HAD A LOSS OF 67 CENTS A SHARE IN THE PREVIOUS YEAR AFTER A CHARGE THE STOCK HAD FALLEN 2 IN THE PAST WEEK DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9301280119 930128 COMMERCE'S LATEST FAIR TRADE FRAUD BY JAMES BOVARD THE COMMERCE DEPARTMENT ANNOUNCED YESTERDAY THAT COMPANIES FROM 19 FOREIGN NATIONS HAVE BEEN FOUND GUILTY OF DUMPING STEEL ON THE US MARKET AND IMPOSED PROVISIONAL TARIFFS AS HIGH AS 10922 THE DECISION WHICH AMOUNTS TO AN INSTANT EMBARGO ON IMPORTS FROM MANY COMPANIES WILL BE HAILED ON CAPITOL HILL AS FURTHER PROOF OF FOREIGN PERFIDY INSTEAD IT SIMPLY REVEALS THE HYPOCRISY AND ABSURDITY OF US DUMPING LAW DUMPING SUPPOSEDLY MEANS THAT A FOREIGN COMPANY IS SELLING A PRODUCT IN THE US FOR LESS THAN IN ITS HOME MARKET OR LESS THAN ITS COST OF PRODUCTION BUT IN THE PAST 19 YEARS CONGRESS AND FEDERAL BUREAUCRATS HAVE REPEATEDLY STRETCHED THE DEFINITION COMMERCE NOW ROUTINELY FINDS 97 OF ALL FOREIGN COMPANIES IT INVESTIGATES GUILTY OF DUMPING THOUGH YESTERDAY'S ANNOUNCEMENT WAS A PRELIMINARY FINDING THE CUSTOMS SERVICE WILL DEMAND FROM EACH COMPANY A DEPOSIT EQUAL TO THE PRELIMINARY DUMPING MARGIN ON STEEL IMPORTS IF THE COMMERCE DEPARTMENT IN ITS FINAL RULINGS IN APRIL AND JUNE FINDS A LOWER DUMPING MARGIN OR IF THE US INTERNATIONAL TRADE COMMISSION CONCLUDES THAT THE IMPORTS ARE NOT INJURING US STEELMAKERS THE DEPOSITS CAN BE REFUNDED BUT COMMERCE HAS ALREADY INDICATED TO MANY COMPANIES THAT IT WILL IMPOSE PUNITIVE TARIFFS IN THE FINAL RULING IN RECENT YEARS COMMERCE HAS MADE IT INCREASINGLY DIFFICULT FOR FOREIGN COMPANIES TO PROVE THAT THEY ARE NOT UNFAIR TRADERS EACH NEW BUREAUCRATIC DEMAND EFFECTIVELY NARROWS THE DEFINITION OF FAIR TRADE FOREIGN STEEL COMPANIES ARE LIKELY TO SPEND MORE THAN 100 MILLION ON US ATTORNEYS AND OTHER COSTS TO TRY TO FULFILL COMMERCE'S DEMANDS THE US CAN DEMAND PRACTICALLY AN INFINITE AMOUNT OF INFORMATION AND ANY REFUSAL TO COMPLY IMMEDIATELY IS TAKEN AS A CONFESSION OF GUILT IF A FOREIGN COMPANY DOES NOT SPEEDILY ANSWER ALL REQUESTS COMMERCE WILL USE THE BEST INFORMATION AVAILABLE BIA TO CALCULATE A DUMPING MARGIN BUT THE BIA IS USUALLY THE ALLEGATIONS THAT A US COMPANY GAVE COMMERCE TO LAUNCH THE INITIAL INVESTIGATION WHICH IS USUALLY THE MOST NEGATIVE INFORMATION AVAILABLE ABOUT THE FOREIGN COMPANY IF A RESPONDENT MAKES A FEW ERRORS IN THE CARTONS SOMETIMES CARLOADS OF INFORMATION IT IS ORDERED TO PROVIDE COMMERCE CAN DISREGARD THE ENTIRE RESPONSE AND INVOKE BIA COMMERCE EVEN SOMETIMES USES THE ALLEGATIONS BY A US COMPANY AGAINST ITS FOREIGN COMPETITION WHEN IT KNOWS THE INFORMATION IS INCORRECT COMMERCE MAY HAVE IMPOSED MORE BIA PENALTIES YESTERDAY THAN IN ANY PREVIOUS RULING IN THE CURRENT DUMPING INVESTIGATION FOREIGN COMPANIES WERE GIVEN ONLY 45 DAYS TO MAKE AN INITIAL RESPONSE TO A MASSIVE COMMERCE DEPARTMENT QUESTIONNAIRE IN THE CASE OF METALEXPORTIMPORT MEI A ROMANIAN COMPANY COMMERCE SENT THE QUESTIONNAIRE TO THE ROMANIAN EMBASSY IN WASHINGTON WHICH DALLIED BEFORE FORWARDING THE INFORMATION TO BUCHAREST AND THEN APPARENTLY FORGOT TO SEND ALL OF THE PARTS OF THE QUESTIONNAIRE MEI TRIED TO FILL THE DATA REQUEST BUT ITS RESPONSE MAILED FROM BUCHAREST ARRIVED A WEEK LATE MEI ALSO TRIED TO RESPOND TO THE QUESTIONNAIRE WITHOUT HIRING AN AMERICAN LAWYER APPARENTLY A CARDINAL SIN IN THE EYES OF THE COMMERCE DEPARTMENT MEI SUBSEQUENTLY HIRED COUNSEL AND SUBMITTED OTHER INFORMATION TO COMMERCE ON TIME YET COMMERCE REFUSED TO ACCEPT ANY ADDITIONAL INFORMATION AND YESTERDAY ANNOUNCED A 7504 BIA DUMPING TARIFF ON ITS EXPORTS ROMANIAN STEEL EXPORTS HAVE BEEN EFFECTIVELY BARRED FROM THE US BASED SOLELY ON UNVERIFIED ALLEGATIONS BY AMERICAN PRODUCERS COMMERCE INVESTIGATED EXPORTS OF STEEL COILS FROM GERMANY'S PREUSSAG STAHL AG PSAG PSAG PROVIDED COMMERCE WITH MASSIVE DATA ON ITS US AND GERMAN SALES OF STEEL COILS BUT THEN COMMERCE DEMANDED FURTHER DATA ON SALES IN GERMANY OF TYPES OF STEEL NOT EXPORTED TO THE US ON DEC 15 COMMERCE DECIDED TO IMPOSE BIA PENALTIES ON THE GERMAN COMPANY IF IT DID NOT FURNISH INFORMATION ON ALL SALES BY DEC 21 BUT DID NOT INFORM THE COMPANY OF THAT ULTIMATUM UNTIL JAN 7 AT THE SAME TIME THAT COMMERCE HEAVILY PENALIZED PSAG STEEL EXPORTS FOR NOT PROVIDING THIS INFORMATION HOWEVER IT EXEMPTED THREE OTHER STEEL COMPANIES FROM THE REQUIREMENT TO REPORT HOME MARKET SALES OF PRODUCTS NOT EXPORTED TO THE US POLISH STEEL EXPORTS HAVE BEEN BANISHED FROM THE US MARKET BY A 7544 DUMPING MARGIN COMMERCE EMPLOYED ITS BIZARRE METHODOLOGY FOR NONMARKET ECONOMIES ANNOUNCING YESTERDAY THAT IF POLISH STEEL HAD BEEN PRODUCED WITH ENERGY LABOR AND OTHER COSTS PLUCKED FROM SOUTH AFRICA MEXICO ARGENTINA AND TURKEY IT WOULD HAVE COST FAR MORE THAN IT ACTUALLY DID THE USE OF THIS METHOD IGNORES POLAND'S MASSIVE AND COURAGEOUS ECONOMIC REFORMS SUMITOMO METAL INDUSTRIES A JAPANESE STEEL PRODUCER BECAME SO EXASPERATED WITH COMMERCE'S ENDLESS DEMANDS THAT IT WITHDREW FROM THE DUMPING INVESTIGATION ON JAN 14 EFFECTIVELY SURRENDERING ALL ITS US EXPORTS TO AVOID CONTINUED HARASSMENT BY US BUREAUCRATS THOUGH SUMITOMO HAD PROVIDED THOUSANDS OF PAGES OF DOCUMENTS COMMERCE ALSO DEMANDED DETAILED SALES INFORMATION FROM OTHER JAPANESE COMPANIES THAT BOUGHT AND RESOLD SUMITOMO PRODUCTS INFORMATION SUMITOMO SAID WAS IMPOSSIBLE TO PROVIDE COMMERCE BLOCKED SUMITOMO STEEL FROM THE US MARKET WITH A 2498 BIA DUMPING MARGIN COMMERCE HAS WORKED OVERTIME TO STACK THE DECK AGAINST FOREIGN PRODUCERS FOR INSTANCE ATTORNEYS FOR THE US STEELMAKERS WERE ALLOWED TO EXAMINE THE LENGTHY QUESTIONNAIRE THAT COMMERCE SENT FOREIGN PRODUCERS AND SUGGEST MODIFICATIONS WHILE ATTORNEYS FOR MANY FOREIGN COMPANIES WERE EFFECTIVELY PROHIBITED FROM SUGGESTING ANY MODIFICATIONS THE COMMERCE DEPARTMENT REFUSED TO CONSIDER ANY INFORMATION FOREIGN COMPANIES SUBMITTED FOR YESTERDAY'S RULING AFTER A DEC 21 DEADLINE YET COMMERCE HAS REPORTEDLY CONSIDERED DOZENS OF SUBMISSIONS IT RECEIVED FROM THE DOMESTIC STEEL INDUSTRY CRITICIZING FOREIGN STEEL PRODUCERS THOUGH COMMERCE CALCULATES ITS LESS THAN FAIR VALUE DUMPING MARGINS DOWN TO THE SECOND DECIMAL POINT THE FINAL NUMBERS ARE OFTEN THE RESULT OF BLUE SMOKE AND MIRRORS STEEL IS SOLD IN HUNDREDS OF DIFFERENT FORMS BUT COMMERCE OFTEN COMPARES US AND FOREIGN PRICES OF DIFFERENT SHAPES QUALITIES AND QUANTITIES OF STEEL THE RESULT OF THE PRICE COMPARISONS IF IT IS A HIGH DUMPING MARGIN IS CLOSE ENOUGH FOR GOVERNMENT WORK THE HIGHER THE DUMPING MARGINS ARE SET THE MORE POWER THE US GOVERNMENT HAS OVER FOREIGN COMPANIES THIS IS IMPORTANT BECAUSE THE US GOVERNMENT MAY OFFER TO SUSPEND THE DUMPING INVESTIGATIONS IF FOREIGN COMPANIES AGREE TO RESTRICT THEIR STEEL EXPORTS TO THE US OR AGREE TO PRICE CONTROLS ON THEIR US SALES SINCE THE PRELIMINARY DUMPING MARGINS ARE VERY HIGH FOREIGN COMPANIES WILL BE TEMPTED TO ACCEPT WHATEVER SCRAPS OF MARKET SHARE COMMERCE OFFERS IN RETURN FOR AN END TO THE DUMPING PROSECUTION COMMERCE'S EXTREME RULINGS IN THE DUMPING CASES ARE IN THE SAME PROTECTIONIST SPIRIT AS ITS NOVEMBER DECISIONS REGARDING ALLEGED SUBSIDIES ON STEEL IMPORTS FROM 14 COUNTRIES IN SEVERAL OF THOSE CASES COMMERCE REVERSED ITS PREVIOUS DECISIONS AND ANNOUNCED THAT PRIVATIZED COMPANIES WILL BE CONSIDERED GUILTY FOR SUBSIDIES THEY RECEIVED WHILE GOVERNMENTOWNED UP TO 15 YEARS AGO COMMERCE'S DECISION EFFECTIVELY ERECTS A HUGE DO NOT ENTER SIGN AT THE US BORDER FOR EAST EUROPEAN AND RUSSIAN MANUFACTURERS US GOVERNMENT OFFICIALS HAVE LONG BEEN BROWBEATING FOREIGN GOVERNMENTS TO PRIVATIZE THEIR STATEOWNED MANUFACTURERS COMMERCE'S ACTION THUS MAKES A MOCKERY OF US FOREIGN POLICY COMMERCE CANNOT CLOBBER FOREIGN SELLERS WITHOUT ALSO HARMING AMERICAN BUYERS MANY TYPES OF STEEL HIT BY THE DUMPING DUTIES ARE NOT PRODUCED IN THE US IN SUFFICIENT QUANTITY OR QUALITY TO SATISFY THE NEEDS OF AMERICAN MANUFACTURERS COMMERCE IS SACRIFICING THE MAJORITY OF AMERICAN HEAVY INDUSTRY TO GRATIFY A FEW GREEDY STEEL PRODUCERS NUCOR INC THE NATION'S PREMIER STEEL MINIMILL REFUSED TO SUPPORT THE DUMPING CASE UNFORTUNATELY THE CLINTON ADMINISTRATION SEEMS AS IGNORANT OF OR DISINGENUOUS ABOUT THE ANTIDUMPING LAW AS WAS ITS PREDECESSOR SECRETARY OF COMMERCE RON BROWN DECLARED YESTERDAY THAT THE DUMPING INVESTIGATIONS PROCEED IN AN OPEN MANNER TO ENSURE THAT A FAIR AND ACCURATE RESULT IS ACHIEVED MR BROWN SHOULD TELL THAT TO THE POLES ROMANIANS GERMANS JAPANESE BRITISH ITALIANS SWEDES MEXICANS AND AUSTRIANS ALL OF WHOM WERE HIT WITH BIA PENALTY TARIFFS YESTERDAY THE COMMERCE DEPARTMENT APPARENTLY FEELS ENTITLED TO INFLICT UNLIMITED AMOUNTS OF UNFAIRNESS IN THE NAME OF FAIR TRADE YESTERDAY'S RULING SHOULD BE A WARNING SHOT TO THE CLINTON ADMINISTRATION TO FUNDAMENTALLY REEXAMINE US TRADE LAW BEFORE THE COMMERCE DEPARTMENT FURTHER UNDERMINES AMERICAN COMPETITIVENESS MR BOVARD WRITES OFTEN ON TRADE 9301280118 930128 HEALTH TALKS CANCELED ON MAKING PILL' NONPRESCRIPTION BY ELYSE TANOUYE AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION ABRUPTLY CANCELED A SPECIAL MEETING ON THE POTENTIALLY EXPLOSIVE ISSUE OF ALLOWING BIRTH CONTROL PILLS TO BE SOLD WITHOUT A PRESCRIPTION THE UNUSUAL RETREAT WHICH WAS ORDERED DIRECTLY BY THE FDA'S TOP BRASS CAME AFTER THE OFFICIALS REALIZED THE ISSUE HAS MUCH FURTHERREACHING SOCIAL CONSEQUENCES THAN THEY CONTEMPLATED OPPONENTS ALSO HAD COMPLAINED THAT THE MEETING WAS HASTILY PLANNED AND THAT THE AGENCY HADN'T GIVEN THEM ENOUGH TIME TO PREPARE CAROL SCHEMAN FDA DEPUTY COMMISSIONER FOR EXTERNAL AFFAIRS REJECTS THE NOTION THAT THE FDA WAS BACKING AWAY FROM A CONTROVERSY BUT SHE SAYS IT'S NOT CLEAR WHY THE ISSUE IS BEING ADDRESSED AT THIS TIME AND THIS NARROWLY THE MEETING OF OUTSIDE ADVISERS TO THE AGENCY WAS CANCELED AFTER FDA OFFICIALS DECIDED THAT THE AGENDA WASN'T BROAD ENOUGH AND THAT THE AGENCY HADN'T CONSULTED WITH A WIDE ENOUGH RANGE OF GROUPS SHE SAYS THE MEETING WAS BEING ORGANIZED BY JOHNSON & JOHNSON WHICH SELLS THE TOPSELLING ORAL CONTRACEPTIVE BRAND ORTHONOVUM THE COMPANY HAS A HUGE STAKE IN THE OUTCOME OF ANY FDA DECISION ON THE ISSUE BY SOME ESTIMATES SALES OF J&J'S BIRTH CONTROL PILL SALES COULD DOUBLE TO 500 MILLION IF IT'S SOLD WITHOUT A PRESCRIPTION A GROWTH OPPORTUNITY THE COMPANY DOESN'T HAVE IN THE SLUGGISH PRESCRIPTION DRUG MARKET THIS WOULD BE A TRULY HISTORICAL DECISION IF IT EVER HAPPENS SAYS HEMANT SHAH AN INDEPENDENT DRUG ANALYST BUT FOR NOW THE ISSUE SHARPLY DIVIDES FAMILYPLANNING ADVOCATES SUPPORTERS SAY MAKING THE PILLS MORE EASILY AVAILABLE WILL REDUCE UNWANTED BIRTHS AND ABORTIONS AND INCREASE WOMEN'S REPRODUCTIVE AUTONOMY OPPONENTS SAY A SWITCH COULD INCREASE THE RISK OF SIDE EFFECTS AND OUTOFPOCKET COSTS OF THE PILLS FOR MANY WOMEN AND REDUCE MEDICAL SERVICES FOR WOMEN IT'S TOO POTENT A DRUG FOR OVERTHECOUNTER SAYS SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP MR WOLFE CONTENDS THAT REMOVING THE PRESCRIPTION REQUIREMENT WOULD INCREASE THE USE OF THE PILLS BY WOMEN FOR WHOM THEY POSE DANGERS ALTHOUGH THE PILL HAS BEEN PROVEN SAFE AND EFFECTIVE FOR THE VAST MAJORITY OF WOMEN OF CHILDBEARING AGE IT DOES POSE RISKS FOR WOMEN WITH HIGH BLOOD PRESSURE CERTAIN CANCERS OR DIABETES AND FOR SMOKERS OVER 35 YEARS OLD IN ADDITION TO J&J ORAL CONTRACEPTIVES ARE SOLD BY UNITS OF AMERICAN HOME PRODUCTS CORP MONSANTO CO WARNERLAMBERT CO AND BRISTOLMYERS SQUIBB CO OTHER OPPONENTS ARGUE THAT THE ONLY TIME MANY WOMEN SEE A PHYSICIAN IS TO OBTAIN A BIRTH CONTROL PRESCRIPTION DURING THOSE VISITS OTHER PROBLEMS SUCH AS SEXUALLY TRANSMITTED DISEASES HIGH BLOOD PRESSURE AND CANCER ARE OFTEN DETECTED THEY SAY A BIRTH CONTROL PRESCRIPTION IS THE POOR WOMAN'S TICKET TO HEALTH CARE SAYS CYNTHIA PEARSON PROGRAM DIRECTOR FOR THE NATIONAL WOMEN'S HEALTH NETWORK WHICH OPPOSES SWITCHING THE PILL'S STATUS PHYSICIANS ALSO WOULD LOSE THE OPPORTUNITY TO COUNSEL ADOLESCENT PATIENTS ABOUT SIDE EFFECTS SAYS DANIEL RIDDICK PRESIDENT OF THE AMERICAN FERTILITY SOCIETY AND HEAD OF AN AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS' PRACTICE COMMITTEE WITHOUT COUNSEL WOMEN MAY STOP TAKING THE PILL WHEN THE SIDE EFFECTS MAKE THEM UNCOMFORTABLE WHICH WOULD LEAD TO MORE UNWANTED PREGNANCIES HE SAYS ALTHOUGH PHYSICIANS ARE EXPECTED TO OPPOSE A PILL SWITCH BECAUSE IT MIGHT REDUCE PATIENT VISITS AND DOCTORS' INCOMES DR RIDDICK ARGUES SUCH A MOVE MAY RESULT IN MORE PHYSICIAN VISITS WOMEN MAY RUSH TO EMERGENCY ROOMS OR DOCTORS OFFICES BECAUSE OF VAGINAL BLEEDING OR OTHER COMMON SIDE EFFECTS THAT WOULDN'T HAVE ALARMED WOMEN WHO WERE COUNSELED BEFORE STARTING THE PILL HE SAYS CONDOM USE ALSO MAY DECLINE IF BIRTH CONTROL PILLS ARE READILY AVAILABLE ON DRUGSTORE COUNTERS OPPONENTS ARGUE THAT COULD LEAD TO AN INCREASE IN SEXUALLY TRANSMITTED DISEASES INCLUDING AIDS THE OPPONENTS ALSO ARGUE THAT MAKING BIRTH CONTROL PILLS AVAILABLE WITHOUT A PRESCRIPTION MAY REDUCE OPTIONS FOR POOR WOMEN WHO CURRENTLY RECEIVE THEM FREE OR AT A LOW COST MEDICAID WON'T COVER NONPRESCRIPTION BIRTH CONTROL PILLS FORCING POOR WOMEN TO PAY 20 TO 25 A MONTH OUT OF THEIR OWN POCKETS MICHAEL POLICAR MEDICAL DIRECTOR OF THE PLANNED PARENTHOOD FEDERATION OF AMERICA NOTES THAT WHAT MAKES SOME FAMILY PLANNING PROVIDERS BALK AT THE IDEA OF OVERTHECOUNTER SALES IS THE POSSIBILITY OF LOSING VALUABLE INCOME FROM SELLING BIRTH CONTROL PILLS WHICH THEY BUY AT A DISCOUNT 9301280117 930128 ECONOMY GREENSPAN SAYS ECONOMY IS IMPROVING BUT WON'T PROMISE CUT IN INTEREST RATES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE HEAD WINDS THAT HAVE BEEN SLOWING THE ECONOMIC RECOVERY HAVE SLACKENED SOMEWHAT AND THAT THE ECONOMY IS IMPROVING TESTIFYING BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS MR GREENSPAN SAID RECENT ECONOMIC INDICATORS SUGGEST THE ECONOMY IS GAINING STRENGTH HE SAID MUCH OF THE STRENGTH HAS COME FROM AMERICAN CONSUMERS WHO HAVE MANAGED TO IMPROVE THEIR FINANCIAL HEALTH AFTER TAKING ON LOTS OF DEBT DURING THE 1980S BUT DEMOCRATIC SENATORS USED MR GREENSPAN'S PRESENCE TO PRESS THEIR COMPLAINT THAT THE FED HAS BEEN TOO SLOW TO REDUCE INTEREST RATES THE FACT OF THE MATTER IS THAT WE HAVE A RECOVERY THAT IS NOT RESTORING JOBS WE DON'T HAVE AN INFLATION PROBLEM WE'VE GOT TO GET THIS ECONOMY MOVING SAID SEN PAUL SARBANES D MD IF THE FED DOESN'T RESPOND IT'S GOING TO INCREASE THE PRESSURE IN THE CONGRESS TO RESPOND ON THE FISCAL FRONT THAT OF COURSE WOULD INCREASE THE ALREADY BULGING DEFICIT THE DEMOCRATS GET ANOTHER SHOT AT MR GREENSPAN WHEN HE APPEARS BEFORE THE SENATE BUDGET COMMITTEE TODAY MR GREENSPAN AVOIDED MAKING ANY PROMISE THAT THE FED WOULD CUT INTEREST RATES IF THE WHITE HOUSE AND CONGRESS ENACT A DEFICITREDUCTION PACKAGE IT'S A MUCH MORE COMPLEX SET OF RELATIONSHIPS THAN JUST BASICALLY SAYING A BUDGET DEFICIT HAS BEEN REDUCED AND THEREFORE CERTAIN THINGS HAPPEN IN MONETARY POLICY HE SAID IF FINANCIAL MARKETS DEEM A DEFICITREDUCTION PACKAGE TO BE CREDIBLE AND THAT PUSHES DOWN MARKET INTEREST RATES THEN THE FED WOULD ADJUST HE SAID FORMER TREASURY SECRETARY NICHOLAS BRADY HAS SAID THERE WAS AN UNDERSTANDING THAT THE FED WOULD LOWER INTEREST RATES AFTER THE 1990 DEFICITREDUCTION PACT SENATE BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN HAS COMPLAINED REPEATEDLY THAT THE FED FAILED TO LIVE UP TO THAT BARGAIN AT THE TIME SOME OF MR GREENSPAN'S FED COLLEAGUES WERE UNHAPPY AT THE WIDESPREAD PERCEPTION THAT THE FED WAS COMMITTING ITSELF TO REDUCING RATES IN EXCHANGE FOR DEFICIT REDUCTION WITH A NEW DEFICITREDUCTION PACKAGE IN THE WORKS THESE FED OFFICIALS WANT THE FED TO AVOID LEAVING ANY SUCH IMPRESSION BUT MR GREENSPAN ALSO EMPHASIZED THE FED'S DESIRE TO WORK COOPERATIVELY WITH THE NEW ADMINISTRATION MENTIONING THAT HE HAD BREAKFAST WITH TREASURY SECRETARY LLOYD BENTSEN JUST BEFORE YESTERDAY'S HEARING COOPERATION IS ALREADY ACCELERATING BETWEEN MYSELF AND OTHER MEMBERS OF THE FEDERAL RESERVE BOARD AND THE NEW ADMINISTRATION HE SAID AFTER THE HEARING WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID PRESIDENT CLINTON AND MR GREENSPAN SHARE THE GOALS OF GETTING GROWTH IN THIS ECONOMY INCREASING JOBS GROWTH IN THE ECONOMY CURRENTLY IS BEING LED BY CONSUMER SPENDING WHICH HAD BEEN CRIMPED FOR ALMOST TWO YEARS WHILE CONSUMERS WORKED TO IMPROVE THEIR BALANCE SHEETS MR GREENSPAN SAID DEBTTOINCOME LEVELS HAVE FALLEN SLIGHTLY AND DEBT SERVICING BURDENS HAVE DECLINED QUITE NOTICEABLY IN LARGE PART BECAUSE OF REDUCTIONS IN INTEREST RATES HE SAID THE CHAIRMAN ALSO NOTED IMPROVEMENT IN INDUSTRIAL PRODUCTION WHICH INCREASED AT A STEADY PACE IN THE LAST THREE MONTHS OF LAST YEAR ACROSS A VARIETY OF INDUSTRIES THE RECENT NEWS ON THE INFLATION FRONT HAS ALSO BEEN QUITE FAVORABLE MR GREENSPAN SAID BUT HE CAUTIONED THAT ALTHOUGH THE FORCES HOLDING BACK THE PERFORMANCE OF THE ECONOMY HAVE DIED DOWN THEY HAVE NOT DISAPPEARED THAT'S BECAUSE THE NATION IS STILL DEALING WITH THE RETRENCHMENT OF THE DEFENSE INDUSTRY AMERICA'S MAJOR TRADING PARTNERS ARE HAVING ECONOMIC TROUBLE AND CONSUMER STRENGTH MAY PROVE FLEETING IF OVERALL LABOR MARKET CONDITIONS STAY WEAK MR GREENSPAN SAID MANY OF THE SENATORS VOICED WORRIES THAT THE FED ACTUALLY WILL RAISE INTEREST RATES THEIR CONCERN STEMMED FROM THE REPORT ON THE LAST FEDERAL OPEN MARKET COMMITTEE MEETING WHICH TALKED OF LOWERING TARGETS FOR MONEY GROWTH BUT MR GREENSPAN SAID THE TALK OF LOWERING TARGETS FOR MONEY GROWTH WAS TECHNICAL AND WASN'T A SUGGESTION THAT THE FED IS CONTEMPLATING RAISING INTEREST RATES 9301280115 930128 INTERNATIONAL CLASH LOOMS OVER SCOPE OF NAFTA PANEL BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEXICO WON'T ACCEPT ESTABLISHMENT OF A NORTH AMERICAN ENVIRONMENTAL COMMISSION THAT HAS ENFORCEMENT POWERS A SENIOR MEXICAN OFFICIAL SAID PUTTING HIS COUNTRY ON A COLLISION COURSE WITH THE CLINTON ADMINISTRATION DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CAUTIOUSLY EMBRACED THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD LIBERALIZE TRADE BETWEEN THE US MEXICO AND CANADA BUT HE SAID HE WANTED TO CREATE SEVERAL SIDE DEALS INCLUDING ONE THAT WOULD CREATE A TRINATIONAL ENVIRONMENTAL COMMISSION WITH THE POWER TO ASSESS DAMAGES AND ORDER HALTS TO POLLUTION IF WE DON'T HAVE THE POWER TO ENFORCE THE LAWS THAT ARE ON THE BOOKS WHAT GOOD IS THE AGREEMENT SAID MR CLINTON DURING A SPEECH IN OCTOBER WHEN HE ENDORSED THE FREETRADE AGREEMENT BUT THE HIGHRANKING MEXICAN OFFICIAL YESTERDAY TOOK EXCEPTION TO THAT CONCEPT WE SHOULD BE RESPECTFUL OF EACH COUNTRY'S ENFORCEMENT BODIES HE SAID I DON'T THINK A COMMISSION SHOULD HAVE THE FUNCTION OF SURVEILLANCE OF EACH OTHER'S ENFORCEMENT ACTIONS THE OFFICIAL WHO DEALS WITH ENVIRONMENTAL MATTERS AND DECLINED TO BE IDENTIFIED ADDED THAT A COMMISSION SHOULD BE ABLE TO STUDY ENVIRONMENTAL COMPLAINTS MAKE RECOMMENDATIONS AND EXCHANGE IDEAS FOR COORDINATING ENVIRONMENTAL ACTION BUT HE DREW THE LINE AT ENFORCEMENT WHICH HE SAID WOULD VIOLATE NATIONAL SOVEREIGNTY HE ALSO ARGUED THAT COMPANIES IN ONE COUNTRY COULD USE THE COMMISSION TO HOBBLE COMPETITORS IN ANOTHER COUNTRY BY PRESSING ENVIRONMENTAL CLAIMS WE DON'T WANT TO BUILD AN ARTIFICIAL BARRIER TO COMMERCE HE SAID AMANDA DEBUSK DEPUTY TRADE COORDINATOR FOR THE CLINTON TRANSITION TEAM SKETCHED OUT THE CLINTON TEAM'S VISION OF THE ENVIRONMENTAL COMMISSION SHORTLY BEFORE THE INAUGURATION SHE SAID THE COMMISSION SHOULD SET MINIMUM ENVIRONMENTAL STANDARDS AND BE RESPONSIBLE FOR ENFORCEMENT OF THOSE STANDARDS BUT SHE WAS VAGUE ABOUT HOW THE STANDARDS WOULD BE ENFORCED THERE IS A RELUCTANCE TO SEND INSPECTORS INTO FACTORIES SHE SAID INSTEAD SHE SUGGESTED THE COMMISSION MIGHT HOLD HEARINGS TO PUBLICIZE COMPLAINTS A SPOKESWOMAN FOR THE US TRADE REPRESENTATIVE'S OFFICE DECLINED TO COMMENT ON THE YESTERDAY'S REMARKS BY THE MEXICAN OFFICIAL INSTEAD MERELY CITING PRESIDENT CLINTON'S CAMPAIGN STATEMENT THE ENVIRONMENT IS AN EMOTIONAL ISSUE IN THE US AND MEXICO BUT SOMETIMES FOR DIFFERENT REASONS IN MEXICO OPPONENTS OF NAFTA FEAR THE US WILL USE ENVIRONMENTAL CONCERNS TO IMPOSE ITS WILL IN A VARIETY OF AREAS IN THE US ENVIRONMENTALISTS DISTRUST THE MEXICAN GOVERNMENT'S ENVIRONMENTAL ENFORCEMENT RECORD THEY WANT A COMMISSION TO INSURE THAT THE FREETRADE AGREEMENT WON'T BE USED TO DIMINISH ENVIRONMENTAL STANDARDS THROUGHOUT THE CONTINENT PRESIDENT CLINTON NEEDS TO WIN SUPPORT FROM AT LEAST SOME ENVIRONMENTAL GROUPS IN ORDER TO PUSH THE TRADE PACT THROUGH CONGRESS JUSTIN WARD A TRADE ANALYST FOR THE NATURAL RESOURCES DEFENSE COUNCIL A US ENVIRONMENTAL GROUP SAID A COMMISSION SHOULD USE ENFORCEMENT POWERS AS A LAST RESORT AFTER TRYING TO SHAME OFFENDING PARTIES INTO COMPLIANCE ALEX HITTLE INTERNATIONAL COORDINATOR OF FRIENDS OF THE EARTH CALLS ENFORCEMENT POWERS CRUCIAL TO MAKE SURE MEXICO HONORS ITS ENVIRONMENTAL COMMITMENTS FRIENDS OF THE EARTH ALSO AN ENVIRONMENTAL GROUP IS PART OF A BROAD COALITION OPPOSING THE FREETRADE AGREEMENT NRDC IS CRITICAL OF THE PACT BUT HASN'T TAKEN A FORMAL POSITION ON IT US TRADE REPRESENTATIVE MICKEY KANTOR HASN'T YET SET A DATE TO BEGIN NEGOTIATIONS OVER SIDE DEALS TO THE FREETRADE AGREEMENT BUT CAROL BROWNER ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR IS SCHEDULED TO MEET WITH MEXICO'S SECRETARY FOR SOCIAL DEVELOPMENT LUIS DONALDO COLOSIO IN MIDFEBRUARY TO BEGIN TALKS ON ENVIRONMENTAL ISSUES AND OTHER MATTERS SEPARATELY MR KANTOR HAS SET UP A MEETING WITH THE EUROPEAN COMMUNITY'S TOP TRADE NEGOTIATOR SIR LEON BRITTAN IN WASHINGTON ON FEB 11 SIR LEON THE EC'S COMMISSIONER FOR EXTERNAL ECONOMIC AFFAIRS HAS BEEN PRESSING THE US TO TRY TO REVIVE STALLED WORLD TRADE TALKS THE TALKS ON A NEW TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE ESSENTIALLY HAVE BEEN SUSPENDED WHILE THE CLINTON ADMINISTRATION SETS ITS POLICY 9301280114 930128 WHO'S NEWS REGENERON PHARMACEUTICALS INC REGENERON PHARMACEUTICALS INC TARRYTOWN NY JESSE M CEDARBAUM 41 YEARS OLD WAS NAMED VICE PRESIDENT OF CLINICAL AFFAIRS AT THIS DEVELOPER OF BIOTECHNOLOGYBASED COMPOUNDS FOR THE TREATMENT OF NEURODEGENERATIVE DISEASES AND NERVE INJURIES DR CEDARBAUM HAD BEEN PROGRAM DIRECTOR OF THE COMPANY'S CLINICAL AFFAIRS GROUP RANDALL G RUPP 45 WAS NAMED VICE PRESIDENT OF MANUFACTURING AND PROCESS SCIENCE DR RUPP HAD BEEN DIRECTOR OF MANUFACTURING 9301280113 930128 WHO'S NEWS MAGMA POWER CO MAGMA POWER CO SAN DIEGO RALPH W BOEKER WAS NAMED PRESIDENT SUCCEEDING PAUL M PANKRATZ WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR BOEKER 58 YEARS OLD WAS MOST RECENTLY GROUP VICE PRESIDENTCHEMICALS PERFORMANCE PRODUCTS AND HYDROCARBONS AT DOW CHEMICAL CO MR PANKRATZ 60 HAD ASSUMED THE PRESIDENT'S DUTIES IN MARCH ON A TEMPORARY BASIS 9301280112 930128 AND NOW THEY'LL SNEAK IN ORDERS FOR AVIATION FUEL AND PARACHUTES BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND THE CABINET EXERCISING ITS FLEDGLING AUTHORITY OVER THAI MILITARY PROCUREMENT HAS QUIETLY APPROVED THE PURCHASE OF 120 MILLION OF AIRCRAFT ENGINES FROM THE US ACTUALLY THE OFFICIALS DIDN'T HAVE MUCH CHOICE IN 1991 THE US EVEN MORE QUIETLY SOLD THE ROYAL THAI AIR FORCE A SQUADRON OF F16 FIGHTERS WITHOUT ENGINES WHILE US OFFICIALS HERE WON'T COMMENT ON THE F16 SALE THE DEAL SHOWS HOW CRAFTY THE THAI MILITARY CAN BE IN GETTING WHAT IT WANTS EVEN WHEN IT CAN'T AFFORD IT THE AIR FORCE APPARENTLY WAS SHORT OF MONEY FOR THE JETS WITH ENGINES WHEN THE ORDER CAME UP FOR CONSIDERATION IN LATE 1991 SO TOP AIRFORCE OFFICERS PERSUADED THE JUNTABACKED GOVERNMENT THEN IN POWER TO ORDER THE PLANES WITHOUT ENGINES FIGURING THAT THE LATTER COULD BE PURCHASED IN TIME FOR SCHEDULED DELIVERY OF THE F16S IN 1995 ALL OF WHICH WAS NEWS TO THE ADMINISTRATION OF PRIME MINISTER CHUAN LEEKPAI INSTALLED AFTER A SEPTEMBER 1992 ELECTION AND EAGER TO WIELD POWER OVER MILITARY SPENDING IN REVIEWING PROCUREMENT THE NEW DEFENSE MINISTER DISCOVERED THE ORDER FOR 18 F16S WITHOUT THE ENGINES HE SAW THE PLANES COULDN'T BE DELIVERED EARLIER THIS MONTH MEANWHILE THE AIRFORCE CHIEF TOLD MR CHUAN THAT THE CABINET OUGHT TO APPROVE THE ENGINE PURCHASE THIS MONTH IN CASE ENGINE PRICES RISE THAT LEFT THE CABINET TO CHOOSE BETWEEN APPROVING A SUBSTANTIAL PURCHASE OR PAYING FOR JET FIGHTERS THAT COULDN'T FLY MANY OFFICIALS ELECTED ON ANTIMILITARY PLATFORMS AND HOPING TO BOOST SPENDING ON EDUCATION AND RURAL DEVELOPMENT WERE UNHAPPY WITH THE F16 PURCHASE BUT IN THE END THE CABINET APPROVED THE PURCHASE BECAUSE THAILAND HAD ALREADY AGREED TO SPEND 560 MILLION ON THE AIRPLANES TRAINING AND A NEW RADAR SYSTEM WE HAVE NO OTHER CHOICE MR CHUAN TOLD REPORTERS AFTERWARD THE PURCHASE LEAVES UP IN THE AIR THE QUESTION OF WHAT THE MILITARY INTENDS TO DO WITH THE PLANES SO FAR I HAVE NOT SEEN ANY USE FOR THE F16S ONE CABINET MINISTER WAS QUOTED BY THE NATION NEWSPAPER AS SAYING AFTER THE CABINET VOTE THE AIR FORCE ALREADY HAS 18 F16S BUT SAYS IT NEEDS TO DOUBLE THE SIZE OF THE FORCE TO BOLSTER THE COUNTRY'S AIR DEFENSES EVEN SO THAILAND'S F16S WERE OF LITTLE USE DURING A 1988 BORDER CLASH WITH LAOS WHEN THE TINY ILLEQUIPPED NEIGHBOR GOT THE BETTER OF THAILAND'S FORCES 9301280111 930128 WHO'S NEWS VESTAR INC VESTAR INC SAN DIMAS CALIF JAMES D WATKINS FORMER SECRETARY OF ENERGY IN THE BUSH ADMINISTRATION WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICAL CONCERN THAT FOCUSES ON THE DEVELOPMENT OF THERAPEUTIC AND DIAGNOSTIC AGENTS FOR CANCER AND OTHER SERIOUS ILLNESSES THE APPOINTMENT OF RETIRED NAVY ADMIRAL WATKINS 65 YEARS OLD INCREASES THE BOARD TO SEVEN MEMBERS 9301280110 930128 FIRST BOSTON TO SELL ITS STAKE IN SEALY FOR 250 MILLION BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIRST BOSTON CORP FOUND A BUYER FOR ITS TROUBLESOME 94 INTEREST IN MATTRESS MAKER SEALY CORP AGREEING TO SELL THE INVESTMENT TO CHICAGO INVESTMENT FIRM ZELL/CHILMARK FUND LP FOR 250 MILLION SEALY FORMERLY OHIO MATTRESS CO HAS BEEN A DIFFICULT PURCHASE EVER SINCE ITS 1989 BUYOUT FOR 980 MILLION WITH THE AID OF A 457 MILLION BRIDGE LOAN OR INTERIM FINANCING PROVIDED BY FIRST BOSTON A UNIT OF CS FIRST BOSTON INC THE MATTRESS COMPANY'S BUYERS WERE NEVER ABLE TO REFINANCE THE DEBT IN PART TO DUE TO THE COLLAPSE OF THE JUNK BOND MARKET AND FIRST BOSTON FOUND ITSELF FORCED TO HELP RESTRUCTURE THE COMPANY'S DEBT IN EFFECT ABSORBING MORE AND MORE OF THE INVESTMENT FIRST BOSTON ACQUIRED A 40 EQUITY STAKE IN SEALY IN EARLY 1990 AND BOOSTED IT TO 94 LAST AUGUST THE ANNOUNCEMENT DIDN'T INDICATE HOW MUCH FIRST BOSTON HAS LOST ON THE TRANSACTION IN DECEMBER 1990 THE INVESTMENT BANKING COMPANY TOOK A SIZABLE LOSS RESERVE AGAINST THE VALUE OF ITS LOANS TO SEALY AND OTHER HIGHLY LEVERAGED COMPANIES SAMUEL ZELL CHAIRMAN OF ZELL/CHILMARK FUND CALLED SEALY A GREAT COMPANY WITH TERRIFIC POTENTIAL AND A WELLESTABLISHED FRANCHISE WITH IMPROVED MANUFACTURING AND MARKETING CAPABILITIES WE'VE BEEN INTERESTED OBSERVERS OF THE COMPANY FOR FOUR YEARS HE SAID THE REMAINING 6 OF SEALY WILL CONTINUE TO BE HELD BY MANAGEMENT AND AN INVESTMENT GROUP LED BY GIBBONS GOODWIN VAN AMERONGEN THE ORIGINAL PURCHASERS OF THE COMPANY IN 1989 FIRST BOSTON WILL CONTINUE AS A FINANCIAL ADVISER TO SEALY AND ACT AS INVESTMENT BANKER FOR THE COMPANY CLIPPER GROUP LP AN INVESTMENT FIRM WHICH MANAGES SEALY AND OTHER INVESTMENTS ORIGINALLY MADE BY FIRST BOSTON INTENDS TO INVEST IN SEALY THROUGH PARTICIPATION WITH ZELL/CHILMARK THE TRANSACTION IS EXPECTED TO CLOSE IN MIDFEBRUARY IN A LETTER TO EMPLOYEES SEALY MANAGEMENT CALLED THE ZELL/CHILMARK INVESTMENT A STRONG VOTE OF CONFIDENCE THE MEMO ADDED THAT IN FISCAL 1992 SEALY SALES INCREASED STRONGLY AS DID OUR OPERATING CASH FLOW WE ALSO GENERATED REAL AFTER TAX NET INCOME FOR THE FIRST YEAR SINCE THE 1989 BUYOUT THROUGH VARIOUS ENTITIES MR ZELL HAS BEEN A MAJOR BUYER OF DISTRESSED PROPERTIES ZELL/CHILMARK RECENTLY OFFERED TO PURCHASE SCHWINN BICYCLE CO WHICH IS IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS LAST AUGUST IT PROPOSED A DEBT RESTRUCTURING THAT GAVE IT CONTROL OF JACOR COMMUNICATIONS INC CINCINNATI A RADIO STATION AND CABLE TELEVISON SYSTEM OPERATOR MR ZELL ALSO CONTROLS ONE OF THE LARGEST CLOSELY HELD REALESTATE PORTFOLIOS IN THE COUNTRY WITH MILLIONS OF SQUARE FEET OF RETAIL SPACE AND HE MANAGES TWO SEPARATE REALESTATE INVESTMENT FUNDS 9301280109 930128 MARKETING & MEDIA DOW JONES EARNINGS ROSE TO 298 MILLION IN THE FOURTH PERIOD NEW YORK DOW JONES & CO SAID NET INCOME FOR THE FOURTH QUARTER ROSE TO 298 MILLION OR 30 CENTS A SHARE FROM THE YEAREARLIER 35 MILLION OR THREE CENTS A SHARE THE LATEST QUARTER INCLUDED AN 8 MILLION CHARGE FOR THE WRITEDOWN OF INVESTMENTS AND THE YEAREARLIER QUARTER INCLUDED A 32 MILLION CHARGE THE PUBLISHER OF THE WALL STREET JOURNAL SAID THAT EXCLUDING THE NONRECURRING ITEMS IN BOTH YEARS FOURTHQUARTER EARNINGS WERE 37 CENTS A SHARE IN 1992 AND 35 CENTS IN 1991 REVENUE ROSE 44 TO 4761 MILLION OPERATING INCOME FOR THE QUARTER ROSE 14 TO 797 MILLION FOR THE YEAR NET INCOME ROSE 49 TO 1076 MILLION OR 106 A SHARE FROM THE YEAREARLIER 722 MILLION OR 71 CENTS A SHARE NET INCOME IN 1992 WAS REDUCED BY A ONETIME NET CHARGE OF 188 MILLION OR 19 CENTS A SHARE WHICH WAS RELATED TO ADOPTION OF TWO MANDATORY ACCOUNTING STANDARDS AND THE WRITEDOWN OF CERTAIN INVESTMENTS THE YEAREARLIER CHARGE OF 32 MILLION RESULTED FROM WRITEDOWNS ASSOCIATED WITH THE FOREIGN EXCHANGE DEALING SERVICE OF THE TELERATE SUBSIDIARY EXCLUDING THE NONRECURRING NONCASH CHARGES FOR BOTH YEARS 1992 EARNINGS WERE 125 A SHARE COMPARED WITH 103 A SHARE IN 1991 DOW JONES'S CONSOLIDATED OPERATING INCOME IN 1992 ROSE 17 TO 2807 MILLION FROM 2407 MILLION IN 1991 REVENUE IN 1992 ROSE 54 TO 182 BILLION ADOPTING ACCOUNTING STANDARD 106 FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS RESULTED IN A ONETIME AFTERTAX CHARGE OF 32 CENTS A SHARE AS WELL AS AN ANNUAL CHARGE OF SIX CENTS A SHARE BEGINNING IN 1992 STANDARD 109 ACCOUNTING FOR INCOME TAXES RESULTED IN A ONETIME BENEFIT OF 21 CENTS A SHARE THE WRITEDOWN OF EIGHT CENTS A SHARE RELATED TO INVESTMENTS IN A GROUP OF FRENCH PUBLISHING COMPANIES AND A COMMUNITY NEWSPAPER IN THE US DOW JONES'S INFORMATION SERVICES SEGMENT WHICH INCLUDES THE DOW JONES/TELERATE AND BUSINESS INFORMATION SERVICES GROUPS REPORTED A 21 INCREASE IN 1992 OPERATING INCOME TO 1507 MILLION WHILE REVENUE INCREASED 62 TO 8094 MILLION FULLYEAR OPERATING INCOME FOR THE BUSINESS PUBLICATIONS SEGMENT WHICH INCLUDES THE WALL STREET JOURNAL AND ITS OVERSEAS EDITIONS BARRON'S MAGAZINE AND OTHER PUBLICATIONS INCREASED 41 TO 1151 MILLION ON A 51 REVENUE INCREASE TO 7738 MILLION WALL STREET JOURNAL ADVERTISING LINAGE INCREASED 4 IN THE YEAR BUT FELL 43 IN THE FOURTH QUARTER OTTAWAY NEWSPAPERS INC THE COMMUNITY NEWSPAPER SUBSIDIARY REPORTED AN 18 INCREASE IN FULLYEAR OPERATING INCOME TO 317 MILLION REVENUE ROSE 34 TO 2347 MILLION ADVERTISING LINAGE AT OTTAWAY'S 21 DAILY NEWSPAPERS FELL 39 FOR THE YEAR IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DOW JONES SHARES CLOSED AT 3050 UNCHANGED 9301280108 930128 INTERNATIONAL BRIEF BSN SA MULTINATIONAL FOOD GROUP SAYS PROFIT ROSE 5 IN 1992 FRENCH MULTINATIONAL FOOD GROUP BSN SA SAID 1992 PROFIT ROSE 5 TO 362 BILLION FRANCS 6778 MILLION FROM 345 BILLION FRANCS NOT COUNTING EXCEPTIONAL ITEMS ACCORDING TO PROVISIONAL FIGURES REVENUE ROSE 72 TO 7084 BILLION FRANCS FROM 6607 BILLION FRANCS IN 1991 BSN SAID CASH FLOW INCREASED 7 TO 74 BILLION FRANCS IT ADDED THAT ITS DANONE SA UNIT IN SPAIN HAD BEEN CONSOLIDATED FROM JULY 1 1991 ITS REVENUE ALSO INCLUDED FOR THE FIRST TIME IN 1992 THOSE OF FRANCE PLATS CUISINES IN FRANCE PYCASA IN SPAIN W&R JACOB IN IRELAND AND ITALAQUAE IN ITALY 9301280107 930128 REVIEW & OUTLOOK EDITORIAL CEOS THE VISION THING STEMPEL OF GM AKERS OF IBM LEGO OF WESTINGHOUSE ALL DEPARTED ROBINSON OF AMERICAN EXPRESS FOUGHT OFF THE INVADERS THIS WEEK BUT IS PROBABLY DAVY CROCKETT AT THE ALAMO SEARS ALREADY FIGHTING OUTSIDE THE ALAMO'S WALLS ABANDONED ITS FAMOUS CATALOG IT IS TRULY AS THE FAMED ECONOMIST JOSEPH SCHUMPETER HAD IT THE FORCES OF CREATIVE DESTRUCTION AT WORK ALL THE MEN BEING SUCKED INTO THE VORTEX THAT IS CONSUMING CHIEF EXECUTIVE OFFICERS SURELY WERE AWARE OF SCHUMPETER'S FAMOUS DICTUM BUT EITHER ITS MEANING SLIPPED THEIR MINDS OR THEY WERE PRESIDING OVER MANAGEMENTS LONG DRAINED OF THE CREATIVE LEAVING ONLY THE INEVITABLE WINDING DOWN TO DESTRUCTION THERE IS BY NOW A LARGE LIBRARY OF BOOKS AND ARTICLES EXPLAINING HOW COMPUTERS AND TELECOMMUNICATIONS HAVE COLLAPSED TIME FRAMES FOR EVERYONE BUT MOST OF ALL FOR THOSE IN BUSINESS SPEED IS THE WATCHWORD OF OUR TIME IF THERE IS AN ELEMENT COMMON TO THESE FALTERING CORPORATIONS AND THEIR LEADERS IT IS THAT THEY COULD NOT OR WOULD NOT ADJUST TO THE NEW REALITY OF COLLAPSED TIME FRAMES THERE WAS A MOMENT WHEN DETROIT RECOGNIZED THAT AMERICANS WERE BEGINNING TO BUY LARGE NUMBERS OF FOREIGNMADE CARS WHEN IBM NOTICED THAT ITS INDUSTRY WAS MOVING AWAY FROM LARGE MAINFRAME COMPUTERS WHEN SEARS SAW ITS FIRST WALMART WHEN BIG STEEL SAW ITS PRODUCT TURN INTO A COMMODITY THE TIME FOR DECISIONS WAS THEN THEY WAITED UNTIL LATER TOO LATE OR IF THEY RECOGNIZED THAT DECISIONS WERE NECESSARY THEIR INSTITUTIONS WERE LONG PAST THE POINT OF BEING ABLE TO ACT WITHIN THE TIME FRAMES MANDATED BY THE PRE21ST CENTURY BUSINESS MILIEU THEY WERE EMBEDDED IN UNION BUREAUCRACIES OR MORE LIKELY IN A CORPORATE CULTURE THAT SEEMS TO DULL THE MOVEMENTS OF OTHERWISE FORCEFUL MEN THE INABILITY OR REFUSAL TO DECIDE QUICKLY CAN BE POISON TODAY SO MANY FORCES BEAR DOWN ON THE CEO WHO HESITATES OUTSIDE DIRECTORS ARE GETTING A LOT OF ATTENTION NOW AS ARE THE LARGE SHAREHOLDING INSTITUTIONS THESE ARE USEFUL BUT POSSIBLY LAGGING INDICATORS BY THE TIME THESE PEOPLE SPEAK UP ONETHIRD OF THE BUILDING MAY HAVE BURNED DOWN WHAT ELSE DO YOU CALL A 5 BILLION LOSS THE MOST RELIABLE EARLYWARNING SYSTEM IS PROBABLY A HEALTHY MARKET FOR TAKEOVERS YOU COULD NEVER HAVE PERSUADED THE IBM BOARD TO ADOPT RADICAL SURGERY TWO YEARS AGO BUT A LESS FETTERED MARKET IN CORPORATE CONTROL MIGHTN'T HAVE LEFT THE IBM DINOSAUR TO WANDER SO FAR INTO THE TAR PITS IN THE FIRST PLACE MICROSOFT'S BILL GATES AND GE'S JACK WELCH ARE SOMEHOW ON LISTS OF POSSIBLE REPLACEMENTS FOR JOHN AKERS BETTER THEY SHOULD BE ABLE TO BUY IBM AND REDISTRIBUTE THE ASSETS THE DIVISIONS BRAINS MECHANICS TOWARD MORE PRODUCTIVE SOIL BY DEFINITION IT'S GOING TO BE A VISIONARY WHO SEES THE NEED FOR CHANGE FIRST AND BECAUSE CHANGE IS COMING FASTER THAN EVER THE CEOS OF THE FUTURE ARE GOING TO REQUIRE MORE VISION THAN EVER THE BOTTOM LINE REMAINS FUNDAMENTAL BUT WE SUSPECT THE FUTURE REQUIRES CORPORATE LEADERSHIP WITH THE SKILLS TO INTEGRATE A LOT OF UNEXPECTED AND SEEMINGLY DIVERSE EVENTS INTO ITS PLANNING FOR EXAMPLE THE AUTO STEEL AND TEXTILE INDUSTRIES REACTED TO THE SUDDEN APPEARANCE OF NEW PLAYERS FROM OVERSEAS BY CRYING DUMPING AND PREDATORY PRICING BUT TO STILL HEAR SUCH DEFENSES SO MANY YEARS LATER REFLECTS A MORE FUNDAMENTAL INABILITY TO RECOGNIZE THE TECTONIC SHIFTS OCCURRING IN THE WORLD ECONOMY IT IS SIMPLY STUNNING TO READ THAT DETROIT'S BIG THREE MAY SEEK PUNITIVE TARIFFS ON ALL JAPANESE AUTO MAKERS PLUS A TAX ON JAPANESE CARS MADE INSIDE THE US WE SUSPECT THAT REPORTERS WANTING AN ADVANCE PEEK AT THE CEOS TO BE DUMPED IN THE FUTURE SHOULD CHECK WHICH ONES ARE LINED UP OUTSIDE THE US TRADE REPRESENTATIVE'S OFFICE THERE IS AN IMPORTANT PUBLICPOLICY LESSON IN THE CEO STORY IF AN IBM SEARS OR GM ARE HAVING THIS MUCH TROUBLE TURNING IT AROUND WHAT HOPE IS THERE FOR OUR VARIOUS GOVERNMENTS THE US'S SHAREHOLDERS JUST VOTED OUT STANDPAT CEO GEORGE BUSH BUT WHERE DO WE GO FROM HERE THE CLINTON BRAIN TRUST TALKS ABOUT PUBLICPRIVATE PARTNERSHIPS THE REALITY MAY BE THAT THE FEDERAL ESTABLISHMENT LIKE CALIFORNIA NEW YORK AND SOME BIG CITIES IS SIMPLY TOO BIG TO EVER BE PRODUCTIVE AGAIN CALIFORNIA'S GOVERNOR PETE WILSON AND NEW YORK CITY'S MAYOR DAVID DINKINS LIKE AN AKERS AT ONCEGOLDEN IBM SEEM ENGULFED BY THE SCALE OF THEIR PROBLEMS INDEED NO MATTER HOW TOUGH OR EVEN VISIONARY THE NEXT CEO AT IBM OR OTHER SUCH COMPANIES OR IN THESE GOVERNMENTS THEIR SURVIVAL OBVIOUSLY DEPENDS ON SHEDDING HUNDREDS OF THOUSANDS OF EMPLOYEES IF THE US BUSINESS SCENE IS EVER TO SEE MORE OF THE CREATIVE BUILDING SIDE OF SCHUMPETER'S IDEA THE COUNTRY'S POLICY MAKERS WILL HAVE TO FIND A WAY TO BRING BACK STRONG INCENTIVES FOR ITS ENTREPRENEURIAL COMPANIES THEIR CEOS MAY NOT BE HOUSEHOLD NAMES BUT THEY DO TEND TO HAVE THE VISION THING THEY CAN'T AFFORD NOT TO 9301280106 930128 TECHNOLOGY & HEALTH MCI EARNINGS INCREASED 11 IN 4TH QUARTER BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP POSTED AN 11 INCREASE IN NET INCOME FOR THE FOURTH QUARTER ON A 13 RISE IN SALES REFLECTING MORE CONSUMER CALLING AND NEW INTERNATIONAL BUSINESS THE LONGDISTANCE TELEPHONE COMPANY SAID IT HAS GAINED MORE THAN 10 MILLION CUSTOMERS FOR ITS FRIENDS & FAMILY DISCOUNT SERVICE SINCE MARCH 1991 MCI ALSO GOT A BOOST FROM SELLING SOFTWARE TO THE CANADIAN STENTOR LONGDISTANCE NETWORK AND FROM A 1 BILLION ORDER FROM THE FEDERAL AVIATION ADMINISTRATION IN THE FOURTH QUARTER WASHINGTON DCBASED MCI EARNED 160 MILLION OR 60 CENTS A SHARE COMPARED WITH 144 MILLION OR 52 CENTS A SHARE IN THE FINAL PERIOD OF 1991 REVENUE WAS 276 BILLION AGAINST 244 BILLION FOR THE YEAR MCI'S NET INCOME CLIMBED 11 TO 609 MILLION OR 221 A SHARE FROM 551 MILLION OR 201 A SHARE THE PREVIOUS YEAR SALES ROSE 11 TO 1056 BILLION FROM 949 BILLION EARNINGS FOR THE QUARTER WERE TRIMMED 47 MILLION BY A ONETIME CHARGE FOR A REORGANIZATION BUT THIS WAS OFFSET BY A PAYMENT FROM STENTOR THAT BOOSTED REVENUE IN THE QUARTER BY 56 MILLION MCI SAID STENTOR IS THE LONGDISTANCE CONSORTIUM OWNED BY CANADA'S MAJOR PHONE COMPANIES INCLUDING BCE INC'S BELL CANADA UNIT IT WAS AN OUTSTANDING YEAR SAID DOUGLAS MAINS MCI'S CHIEF FINANCIAL OFFICER WE ONCE AGAIN GREW AT DOUBLE THE INDUSTRY RATE THE RESULTS WERE RIGHT IN LINE WITH EXPECTATIONS DEAD ON SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC MCI CONTINUES TO IMPROVE ITS MARKET POSITION AND THEY'VE STABILIZED OPERATING MARGINS AT 115 AFTER A SLIP IN THE FIRST HALF OF THE YEAR SHOWING SIGNS OF COST STABILITY MCI SHARES WERE TRADING LATE YESTERDAY AT 4075 OFF 1125 IN NATIONAL OVERTHECOUNTER TRADING STILL MCI HAD TO SPEND A LOT FOR NEW BUSINESS IN THE QUARTER WITH SALES AND GENERAL EXPENSES CLIMBING 15 TO 740 MILLION AND OVERALL EXPENSES RISING 12 TO 244 BILLION FROM A YEAR AGO MR GRUBMAN SAID HE EXPECTS THE COMPANY'S EXPENSES TO GROW BY 30 MILLION TO 40 MILLION IN THE FIRST QUARTER WHICH IS TYPICALLY A BIG SPENDING PERIOD FOR LONGDISTANCE CARRIERS AS THEY ROLL OUT NEW MARKETING PROGRAMS IN ADDITION WHILE MANY OF MCI'S NEW FRIENDS & FAMILY ACCOUNTS ARE DEFECTORS FROM AMERICAN TELEPHONE & TELEGRAPH CO'S SERVICE A LARGE NUMBER ARE ALSO FORMER MCI CUSTOMERS WHO HAVE OPTED FOR THE LOWERPRICED SERVICE THIS MEANS THE SAME CUSTOMERS WILL GENERATE LESS REVENUE THE REVENUE AND EARNINGS BENEFIT IS MUCH LESS THAN WHAT THE 10 MILLION WOULD INDICATE MR GRUBMAN SAID WHILE MCI SHOWED STRONG TRAFFIC GROWTH IN THE QUARTER GREGORY SAWERS AN ANALYST AT SANFORD BERNSTEIN & CO SAID MCI'S NUMBERS AND THOSE OF SOME OF THE REGIONAL BELL PHONE COMPANIES INDICATE THAT INDUSTRY GROWTH CONTINUES TO LANGUISH IN THE 7 TO 8 RANGE BY CONTRAST TRAFFIC GROWTH IN THE MID TO LATE1980S WAS 10 TO 12 HE NOTED AT&T IS EXPECTED TO REPORT ITS RESULTS TODAY 9301280105 930128 MARKETING & MEDIA WEIGHT WATCHERS UNIT OF PARAMOUNT AGREE ON PUBLISHING ALLIANCE NEW YORK WEIGHT WATCHERS INTERNATIONAL INC SAID IT REACHED AN AGREEMENT WITH A PARAMOUNT COMMUNICATIONS INC UNIT TO PUBLISH A WIDE ARRAY OF BOOKS VIDEOS AUDIO AND OTHER PRODUCTS AIMED AT WEIGHT AND HEALTHCONSCIOUS CONSUMERS THE NEW AGREEMENT WITH PRENTICE HALL GENERAL REFERENCE GIVES WEIGHT WATCHERS A STRATEGIC ALLIANCE WITH ONE PUBLISHER WHO OFFERS MULTIMEDIA OPTIONS SAID NINA HOFFMAN PRESIDENT AND PUBLISHER OF PRENTICE HALL GENERAL REFERENCE THE VENTURE WHICH MAKES PRENTICE HALL EXCLUSIVE PUBLISHER OF WEIGHT WATCHERS BOOKS NOT ONLY WILL DEVELOP COOKBOOKS BUT ALSO LIFESTYLE BOOKS THAT EMPHASIZE HEALTHY EATING EXERCISE STRESS REDUCTION AND IMPROVED SELF ESTEEM THEY NEVER HAD A UNIFORM LOOK TO THEIR PUBLISHED PRODUCTS WE HOPE TO GIVE THAT TO WEIGHT WATCHERS SHE SAID ONE OF THE MORE CUTTINGEDGE PRODUCTS MS HOFFMAN ENVISIONS WOULD BE AN ELECTRONIC MEAL PLANNER EITHER HANDHELD OR ON A PERSONAL COMPUTER WHICH WOULD ENABLE CUSTOMERS TO CALCULATE THE CALORIES THEY HAVE CONSUMED THAT DAY HOW MANY CALORIES THEY HAVE BURNED OFF IN EXERCISE AND TO GENERALLY HELP PLAN MEALS WEIGHT WATCHERS INTERNATIONAL IS A WHOLLY OWNED SUBSIDIARY OF HJ HEINZ CO IN ITS CURRENT MEDIA MARKETING THE COMPANY SELLS COOKBOOKS AND OFFERS A FEW AUDIO AND VIDEO PRODUCTS TO ITS FRANCHISES WEIGHT WATCHERS BOOKS WILL CONTINUE TO BE PUBLISHED BY THE NAL DIVISION OF PENGUIN USA THROUGH 1993 9301280104 930128 EUPHONIUMISTS FEEL THE STING OF NEGLECT AND DISCRIMINATION BUT NOT SO MUCH IN MILITARY WHERE THERE ARE POSITIONS FOR SOME IN SERVICE BANDS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION HAS ENOUGH ON ITS PLATE WITHOUT HAVING TO WORRY ABOUT DISCRIMINATION AGAINST EUPHONIUMS BUT IT IS NEEDFUL TO SAY A SOURCE OF CONSTANT IRRITATION TO EUPHONIUMISTS SAD NEGLIGENCE COMPLAINS BRIAN BOWMAN WHO IS ONE IRKSOME CHIMES IN JOHN MUELLER IT'S A SHAME SAYS ARTHUR LEHMAN HE'S ONE TOO THE EUPHONIUM HAS BIG PROBLEMS NOT THE LEAST OF WHICH IS THAT MOST PEOPLE PROBABLY DON'T HAVE THE FOGGIEST IDEA WHAT IT IS WHAT IT IS IS A HORN THAT LOOKS LIKE A CROSS BETWEEN A TROMBONE AND TUBA AND SOUNDS A BIT LIKE A CELLO MEREDITH WILLSON THOUGHT IT WORTHY OF MENTION IN HIS SONG SEVENTYSIX TROMBONES WHERE DOUBLEBELL EUPHONIUMS APPEAR BETWEEN COPPERBOTTOM TIMPANI AND BIG BASSOONS BUT SYMPHONIES HAVE NO USE FOR EUPHONIUMS AND JAZZ BANDS DON'T EITHER MOST UNIVERSITIES DON'T HIRE EUPHONIUM TEACHERS OR ALLOW STUDENTS TO SPECIALIZE IN EUPHONIUM ON AN EPISODE OF THE MUCH RERUN BENNY HILL SHOW A EUPHONIUM WAS MISTAKEN FOR A URINAL IT'S SORT OF ON THE PERIPHERY OF MAINSTREAM INSTRUMENTS SAYS BOSTON SYMPHONY MARKETING DIRECTOR CAROLINE SMEDVIG WHO HAS A PENCHANT FOR REFERRING TO A EUPHONIUMIST AS A EUPHEMISM AND TO A EUPHONIUM AS A MUTANT TUBA A EUPHONIUM IN THE SYMPHONY JUST SEEMS TOO BIZARRE FOR WORDS SHE SAYS SHE HAS HER BRASS TIRED OF SUCH ABUSE EUPHONIUMISTS ARE BLOWING THEIR OWN HORNS JAPAN IS LEADING THE WAY LAST AUGUST A TOKYO CONSERVATORY PLAYED HOST TO A FIRSTEVER EUPHONIUM CAMP SO EUPHONIUMISTS COULD RUB ELBOWS EUPHONIUMISTS CAN NOW TEST THEIR TECHNIQUE IN THREE INTERNATIONAL COMPETITIONS THEY CAN JOIN THE WILLSON EUPHONIUM SOCIETY CREATED LAST YEAR BY THE US DISTRIBUTOR FOR A SWISS EUPHONIUM MAKER IT HAS 65 MEMBERS ABOUT 200 EUPHONIUMISTS ARE GATHERING THIS WEEK IN ARLINGTON VA WITH AN EQUAL NUMBER OF TUBA TYPES FOR A CONFAB AND GIANT JAM THIS INSTRUMENT IS CAPABLE OF STANDING ON ITS OWN AND NOT BEING AN ODDITY SAYS PLAYER MR MUELLER EUPHONIUM COMES FROM THE GREEK WORD FOR SWEETVOICED HENCE THE ADJECTIVE EUPHONIOUS IT SOUNDS GOOD FOR ALL THEIR SOUNDING OFF THOUGH EUPHONIUMISTS HAVE A DEFINITE VISIBILITY PROBLEM THAT THEY ALL SEEM TO AGREE STEMS FROM HAVING NOBODY TO POINT TO AS A ROLE MODEL THE TRUMPET HAD DIZZY GILLESPIE THE CLARINET BENNY GOODMAN EVEN TUBBY THE TUBA IS A READY REFERENCE BUT THE BEST THE EUPHONIUM CAN COME UP WITH IS MR BOWMAN AN UNASSUMING 46YEAROLD MUSIC PROFESSOR AT DUQUESNE UNIVERSITY IN PITTSBURGH MR BOWMAN SEEMS TO BE THE WORLD'S LEADING EUPHONIUMIST BUT WHEN HE PERFORMED IN RECITAL AT CARNEGIE HALL HE SAYS I DIDN'T EVEN GET A REVIEW HIS ALBUM THE SACRED EUPHONIUM A COLLECTION OF RELIGIOUS MUSIC PRODUCED BY MARK RECORDINGS HAS RACKED UP SALES OF A FEW HUNDRED HE SAYS HE SOLD MOST OF THEM HIMSELF OTHER EUPHONIUMISTS HAVE SIMILAR TROUBLES WINNING RESPECT YOU'LL MEET SOMEBODY AT A PARTY AND THEY'LL SAY I'M A LAWYER' AND YOU'LL SAY 'I'M A EUPHONIUMIST' AND THEY LOOK AT YOU KIND OF FUNNY SAYS DAVID MILES WHO PLAYS WITH THE US NAVY BAND IT'S A BIT AWKWARD OTHERS GET AROUND THIS BY CALLING IT A BARITONE WHICH IS A SMALLER BUT SIMILAR BRASS VALVED INSTRUMENT TENOR TUBA AND BABY TUBA ARE OTHER ROUGH SYNONYMS BUT WHAT'S TO BE GAINED BY CALLING YOURSELF A TUBA PLAYER ADDING INJURY TO INSULT THE EUPHONIUM HAS OCCUPATIONAL HAZARDS IN COLD WEATHER PLAYERS' LIPS HAVE BEEN KNOWN TO FREEZE TO THE METAL MOUTHPIECE VALVES STICK NOTES ARE MISSED AND TUNING SLIDES OCCASIONALLY FALL OUT CLANK TO THE FLOOR AND CAUSE THE HORN TO EMIT A RUDE SOUND IN JOHN PHILIP SOUSA'S DAY THE INSTRUMENT WAS IN ITS ELEMENT EUPHONIUMS GOT ALL THE MELODIES BUT WHEN THE BIG MARCHING BANDS FELL OUT OF FASHION SO DID THE EUPHONIUM TUBAS AND TRUMPETS FOUND A HOME IN ORCHESTRAS THE SAX AND TROMBONES COULD REPAIR TO JAZZ BANDS EUPHONIUMS HOWEVER HAD NOWHERE TO GO BUT THEME PARKS AND MILITARY BANDS NOW BECAUSE OF BUDGET CUTS THE 200ODD EUPHONIUM SLOTS IN THE MILITARY HAVE BEEN CUT NEARLY BY HALF MR BOWMAN THINKS THAT BETWEEN MTV AND MUZAK EUPHONIUMS COULD DRUM UP MORE BUSINESS FOR THEMSELVES ALL IT TAKES IS A LITTLE IMAGINATION AND VOILA COUNTRY EUPHONIUM AND NEW WAVE EUPHONIUM AND IF ALL ELSE FAILS THERE ARE ALWAYS EUPHONIUMTUBA QUARTETS AT WEDDINGS IT'S SOMETHING THAT NEEDS TO BE DONE SAYS MR BOWMAN PERHAPS BECAUSE OF ALL THE OUTOFWORK EUPHONIUMISTS IT HAS BEEN HARD OVER THE YEARS TO GET YOUNG MUSICIANS TO TAKE UP THE HORN BAND DIRECTORS OFTEN RESORT TO SUBTERFUGE WHEN EUPHONIUMIST HENRY CHARLES SMITH WENT TO HIS FIRST CLARINET LESSON IN THE SIXTH GRADE THE INSTRUCTOR INSTEAD HANDED HIM A EUPHONIUM MY PARENTS WERE IN CAHOOTS WITH THE MUSIC TEACHER MR SMITH SAYS I WAS SHORT AND FAT AND THEY THOUGHT I NEEDED AN INSTRUMENT AS BIG AS I WAS A LOT OF PEOPLE JUST NEED TO TRICK SOMEBODY INTO PLAYING THE BIG STUPIDLOOKING INSTRUMENT MR MILES SAYS HIS OWN BAND DIRECTOR SWITCHED HIM FROM A FRENCH HORN IN THE SEVENTH GRADE OSTENSIBLY BECAUSE OF HIS OVERBITE BUT WHY BOTHER HOODWINKING INNOCENT CHILDREN IT ISN'T AS IF THERE WERE A PLETHORA OF EUPHONIUM MUSIC THE ALBATROSS INSTRUMENT WAS INVENTED AFTER BEETHOVEN AND MOZART MADE THE SCENE AND COMPOSERS SINCE THEM HAVE ROUTINELY IGNORED IT WHEN THE HORN IS FEATURED IT'S OFTEN IN SOMETHING LIKE MUSSORGSKY'S PICTURES AT AN EXHIBITION IN WHICH THE EUPHONIUM REPRESENTS A LUMBERING OX CART WHEN MR MILES APPLIED TO DO HIS DOCTORATE IN EUPHONIUM AT CATHOLIC UNIVERSITY IN WASHINGTON THE SCHOOL WOULDN'T HEAR OF IT BECAUSE OF THE DEARTH OF CLASSICAL MUSIC SO HE WENT TO THE UNIVERSITY OF MARYLAND AND UNEARTHED 200 EUPHONIUM SOLOS MOST OF THEM UNPUBLISHED BUT ALL WORTHY HE SAYS ELIZABETH LUDWIG PRESIDENT OF LUDWIG MUSIC PUBLISHING CO IN CLEVELAND SAYS IT'S A SUPPLY AND DEMAND PROBLEM THERE ISN'T MUCH OF THE LATTER SO EUPHONIUMISTS VENT THEIR FRUSTRATIONS WITH SLANDEROUS JOKES ABOUT MORE POPULAR INSTRUMENTS WHAT'S THE DIFFERENCE BETWEEN A TRAMPOLINE AND A SAXOPHONE THEY ASK YOU TAKE YOUR SHOES OFF TO JUMP ON A TRAMPOLINE WHAT'S THE DIFFERENCE BETWEEN A BASSOON AND AN OBOE ANSWER A BASSOON BURNS LONGER OTHER EUPHONIUMISTS SLIP INTO THE ORCHESTRA PIT UNDER FALSE PRETENSES AS TROMBONISTS IF YOU HAVE MASTERED THE EUPHONIUM YOU CAN HANDLE A TROMBONE WITH A LITTLE PRACTICE ONE SUCH SIDETRACKED EUPHONIUMIST IS MR SMITH WHO MASQUERADED AS A TROMBONIST WITH THE PHILADELPHIA ORCHESTRA MY MAJOR INSTRUMENT IS TROMBONE MR SMITH SAYS MY LOVE IS EUPHONIUM 9301280103 930128 LAW LEGAL BEAT MIT GRADUATE ALLEGES COLLUSION IN SUIT OVER PAYING STUDENT LOAN BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL A MASSACHUSETTS INSTITUTE OF TECHNOLOGY GRADUATE IS RESISTING THE SCHOOL'S BID FOR REPAYMENT OF HIS STUDENT LOAN BY COUNTERSUING MIT FOR ALLEGED COLLUSION IN FIXING FINANCIALAID AWARDS THE NOVEL DEFENSE AND COUNTERCLAIM COULD EXPOSE A POTENTIALLY LARGE AREA OF LIABILITY FOR THE MANY PRIVATE SCHOOLS INCLUDING MIT WHICH HAVE BEEN TARGETS OF THE JUSTICE DEPARTMENT'S PRICEFIXING CASE IN HIGHER EDUCATION MANY OF THESE SCHOOLS INCLUDING MEMBERS OF THE IVY LEAGUE LEND MONEY TO STUDENTS AND OFTEN HAVE DIFFICULTY RECOVERING THEIR FUNDS ANTITRUST ATTORNEYS SAY STUDENT LOAN RECIPIENTS ARE A LOGICAL CLASS OF PLAINTIFFS AGAINST SCHOOLS INVOLVED IN THE JUSTICE DEPARTMENT CASE THEY SAY MR HOICKA'S SUIT WHICH SEEKS CLASSACTION STATUS MAY ALSO INSPIRE OTHERS THE MONSTER IN THE CLOSET FOR MIT AND THE IVIES ALL ALONG IS THAT THEY WOULD SCARE UP A CLASS ACTION OR TWO SAYS THOMAS ARTHUR ASSOCIATE DEAN OF THE LAW SCHOOL AT EMORY UNIVERSITY IN ATLANTA AND IF THE MIT STUDENT'S DEFENSE IS COPIED IT WOULD ALSO POSE POTENTIAL PROBLEMS FOR STUDENTLOAN GUARANTEE AGENCIES THESE AGENCIES OFTEN ARMS OF STATE GOVERNMENTS ARE THE MAIN PARTIES RESPONSIBLE FOR RECOVERING ON DEFAULTS OF ABOUT 3 BILLION A YEAR IN THE FEDERAL STUDENTLOAN PROGRAM THE FORMER STUDENT DAVID HOICKA WAS SUED LAST APRIL BY MIT IN STATE COURT IN CAMBRIDGE MASS FOR ALLEGEDLY DEFAULTING ON A 1986 PROMISSORY NOTE NEGOTIATED AS A REFINANCING OF FORMER STUDENT LOANS MIT SAYS MR HOICKA OWES IT ABOUT 35000 MR HOICKA ALSO OF CAMBRIDGE RECEIVED HIS MOST RECENT DEGREE FROM MIT IN 1982 AND IS NOW AN ATTORNEY REPRESENTING HIMSELF IN THE CASE IN A COUNTERCLAIM AGAINST MIT MR HOICKA SAYS HE AND OVER 80000 OTHER FORMER FINANCIALAID RECIPIENTS AT THE SCHOOL ARE OWED REPARATIONS FOR OVERCHARGES RELATED TO FINANCIALAID COLLUSION THAT BEGAN IN 1958 MR HOICKA CLAIMS TO REPRESENT SEVERAL DIFFERENT GROUPS OF FORMER MIT STUDENTS IN SEPTEMBER A US DISTRICT COURT IN PHILADELPHIA RULED THAT MIT VIOLATED ANTITRUST LAWS BY COLLUDING TO SET FINANCIALAID AWARDS IN REGULAR MEETINGS AND TALKS WITH 22 OTHER SCHOOLS CALLED THE OVERLAP GROUP THE COURT FOUND THAT AS A RESULT OF OVERLAP STUDENTS RECEIVED LESS FINANCIAL AID THAN THEY OTHERWISE WOULD HAVE AND THEREFORE PAID MORE TUITION MIT IS APPEALING THE DECISION THE EIGHT SCHOOLS OF THE IVY LEAGUE EARLIER SUBMITTED TO A CONSENT DECREE WITH THE JUSTICE DEPARTMENT IN WHICH THEY AGREED NOT TO COLLUDE IN THE FUTURE ON FINANCIAL AID AND TUITION IN THEIR REGULAR OVERLAP MEETINGS THE COLLEGES COMPARED NOTES ON FINANCIALAID APPLICANTS ADMITTED TO MORE THAN ONE SCHOOL THEIR MEETINGS COVERED AID AMOUNTS THE NET TUITION PRICE THAT FAMILIES WOULD PAY AND ALSO THE MIX OF LOANS GRANTS AND WORKSTUDY MONEY IN THE AID PACKAGE EACH STUDENT WOULD RECEIVE WITHOUT OVERLAP STUDENTS MAY HAVE RECEIVED HIGHER GRANT AWARDS THEREBY REDUCING THE LOAN AMOUNTS THEY NEEDED TO ATTEND SCHOOL MR HOICKA GAVE NO FIGURE FOR ALLEGED DAMAGES TO HIMSELF OR OTHERS FEDERAL LAW PROVIDES THAT VICTIMS OF PRICE COLLUSION ARE ENTITLED TO RECOVER THREE TIMES THE AMOUNT OF OVERCHARGES IN PRIVATE ACTIONS MIT DENIES THAT MR HOICKA HAS A RIGHT TO RECOVER FROM THE SCHOOL OR THAT HE CAN BRING A CLASS ACTION THIS IS A RUNOFTHEMILL STUDENTLOAN COLLECTION CASE THAT INVOLVES A DEFAULTING OBLIGOR SAYS JEFFREY SWOPE AN ATTORNEY FOR MIT THE DEFENSES HE IS RAISING DON'T APPLY TO HIM AND AREN'T VALID INDEED AS AN ALLEGED LOANDEFAULTER MR HOICKA MAY FACE AN UPHILL BATTLE IN ASSERTING HE IS QUALIFIED TO REPRESENT A CLASS OF PLAINTIFFS MIT ALSO ARGUED IN ITS COURT FILINGS THAT MR HOICKA ISN'T ENTITLED TO MAKE CLAIMS LINKED TO THE ANTITRUST CASE BECAUSE HE IS PAST THE STATUTE OF LIMITATIONS FOR PRIVATE ACTIONS PRIVATE INDIVIDUALS GENERALLY ARE PERMITTED TO RECOVER DAMAGES IN PRIVATE ANTITRUST ACTIONS DATING BACK FOUR YEARS FROM THE TIME THE GOVERNMENT FILES CHARGES IN THIS CASE THAT WOULD INDICATE DAMAGES INCURRED BEFORE MAY 22 1987 COULD NOT BE CONSIDERED BY A COURT HOWEVER MR HOICKA SAYS MIT FRAUDULENTLY CONCEALED ITS FINANCIALAID COLLUSION WHICH ENTITLES HIM UNDER THE STATUTE TO SEEK DAMAGES DATING FURTHER BACK IN ADDITION TO THE MIT COURT CASE AND THE IVY LEAGUE SETTLEMENT WHICH INCLUDED SUCH PRESTIGIOUS SCHOOLS AS HARVARD PRINCETON AND YALE THE JUSTICE DEPARTMENT CONTINUES TO INVESTIGATE ABOUT 14 OTHER OVERLAP SCHOOLS ALL ARE PRIVATE COLLEGES IN THE NORTHEAST THE CHURCH OF SCIENTOLOGY SHOULD PAY DEFENDANTS' LEGAL FEES OF 29 MILLION IN A SUIT THE CHURCH BROUGHT OVER THE ALLEGED THEFT OF SECRET SCIENTOLOGY TEACHINGS A FEDERAL COURT OFFICER RECOMMENDED THE REPORT BY THE SPECIAL MASTER WHO WAS APPOINTED BY THE FEDERAL JUDGE OVERSEEING THE CASE CRITICIZED THE SCIENTOLOGY SUIT AS FRIVOLOUS AND A GLARING EXAMPLE OF BAD FAITH LITIGATION THE SUIT WAS DISMISSED LAST SPRING ALSO ON THE RECOMMENDATION OF THE SPECIAL MASTER BECAUSE THE SCIENTOLOGISTS HADN'T COMPLIED WITH ORDERS TO TURN OVER DOCUMENTS TO THE DEFENDANTS THE SUIT WAS BROUGHT IN 1985 AGAINST FORMER CHURCH MEMBERS ACCUSED OF USING CONFIDENTIAL CHURCH TEACHINGS IN NONSCIENTOLOGY PROGRAMS THE SECRET TEACHINGS WERE ALLEGEDLY STOLEN IN 1983 FROM A SCIENTOLOGY CHURCH IN DENMARK IN HIS REPORT TO THE FEDERAL COURT IN LOS ANGELES SPECIAL MASTER JAMES KOLTS SAID IT IS ABUNDANTLY CLEAR THAT PLAINTIFFS SOUGHT TO HARASS THE INDIVIDUAL DEFENDANTS THROUGH MASSIVE OVERLITIGATION AND OTHER HIGHLY QUESTIONABLE LEGAL TACTICS WILLIAM T DRESCHER AN ATTORNEY IN CALABASAS CALIF FOR THE CHURCH OF SCIENTOLOGY SAID HIS CLIENT WILL ASK THE FEDERAL JUDGE OVERSEEING THE CASE TO REJECT THE SPECIAL MASTER'S RECOMMENDATION NOT A SINGLE INSTANCE OF BAD CONDUCT CAN BE CITED BY THE SPECIAL MASTER HE SAID HE ALSO SAID THE CRITICISM OF THE SCIENTOLOGISTS WAS UNFAIR BECAUSE THE CASE WAS HOTLY CONTESTED ON BOTH SIDES JEROLD FAGELBAUM A LOS ANGELES ATTORNEY REPRESENTING ONE OF THE FORMER SCIENTOLOGISTS DAVID MAYO AND MR MAYO'S DEFUNCT CHURCH OF THE NEW CIVILIZATION SAID THAT IN NOT TURNING OVER DOCUMENTS THE SCIENTOLOGISTS REFUSED TO PUT THEIR EVIDENCE WHERE THEIR MOUTH WAS MR MAYO IS PURSUING COUNTERCLAIMS OF UNFAIR COMPETITION AND LIBEL AGAINST THE SCIENTOLOGISTS WHO'S NEWS ROBERT D STOREY JOINED CLEVELAND LAW FIRM THOMPSON HINE & FLORY AS A PARTNER MR STOREY A MEMBER OF THE BOARD AT PROCTER & GAMBLE CO AND SEVERAL OTHER COMPANIES IS A FORMER DIRECTOR OF THE FEDERAL RESERVE BANK OF CLEVELAND HE WILL FOCUS ON EXPANDING THE 340LAWYER FIRM'S CORPORATE AND BANKING PRACTICES FORMER REP WILLIAM LEHMAN D FLA WHO RETIRED FROM CONGRESS LAST YEAR BECAME A CONSULTANT TO MIAMI LAW FIRM STEEL HECTOR & DAVIS LA LAW LOS ANGELES LAW FIRM MITCHELL SILBERBERG & KNUPP ACQUIRED 16 ATTORNEYS FROM THE SMALL LOS ANGELES FIRM GOLD MARKS RING & PEPPER WHICH DISSOLVED THE MOVE GIVES MITCHELL SILBERBERG BEST KNOWN FOR ITS MOTION PICTURE AND MUSIC PRACTICE A TOTAL OF 146 LAWYERS WILLIAM L COLE MITCHELL SILBERBERG MANAGING PARTNER SAID THE ACQUIRED ATTORNEYS PRACTICE IN THE AREAS OF LITIGATION PUBLIC UTILITIES REGULATION LANDUSE PLANNING AND BANKRUPTCY 9301280102 930128 ECONOMY US LEVIES STEEP DUTIES ON STEEL IMPORTS DRAWING REBUKE FROM TRADE PARTNERS BY ASRA Q NOMANI AND DANA MILBANK STAFF REPORTERS OF THE WALL STREET JOURNAL THE COMMERCE DEPARTMENT IN ITS FIRST SIGNIFICANT TRADE RULING SINCE PRESIDENT CLINTON TOOK OFFICE LEVIED STEEP TARIFFS ON STEEL IMPORTS FROM MAJOR US TRADING PARTNERS THE TARIFFS WHICH ARE LIKELY TO SHUT SOME FOREIGN STEEL OUT OF THE US MARKET ARE EXPECTED TO AVERAGE 27 ON FLATROLLED STEEL IMPORTS COMMONLY USED IN CONSTRUCTION AND AUTO MANUFACTURING THE MOVE REPRESENTS A VICTORY FOR US STEEL COMPANIES WHICH HAVE LAUNCHED A CONVOLUTED LEGAL BATTLE TO BOOST THEIR FINANCIALLY AILING BUSINESS THE DISPUTE COULD AMOUNT TO A POLITICAL TINDERBOX FOR THE CLINTON ADMINISTRATION'S FLEDGLING TRADE POLICY BECAUSE IT AFFECTS STEEL IMPORTED FROM SUCH MAJOR TRADING PARTNERS AS GERMANY CANADA JAPAN FRANCE AND THE UNITED KINGDOM YESTERDAY'S RULING INVOLVES IMPORTS FROM 19 COUNTRIES IN ALL THE DEPARTMENT'S ACTION PROVOKED AN IMMEDIATE OUTCRY FROM FOREIGN GOVERNMENTS AND STEELMAKERS AND INTENSIFIED PRESSURE TO PRODUCE A NEGOTIATED SETTLEMENT IN MULTILATERAL STEEL TALKS THAT HAVE BEEN LANGUISHING FOR MONTHS SIR LEON BRITTAN THE EUROPEAN COMMUNITY COMMISSIONER FOR EXTERNAL ECONOMIC AFFAIRS CALLED THE DECISION UNWARRANTED AND WHOLLY DISPROPORTIONATE HE SAID HE WILL TAKE UP THE MATTER WITH THE EC'S FOREIGN AFFAIRS COUNCIL AND WITH US TRADE REPRESENTATIVE MICKEY KANTOR AND COMMERCE SECRETARY RON BROWN IN A MEETING ON FEB 11 AND SAID THE DECISION WAS PARTICULARLY UNFORTUNATE AND INOPPORTUNE AT THE BEGINNING OF A NEW US ADMINISTRATION EC OFFICIALS SAID THE EUROPEAN COMMUNITY COMMISSION WOULD TAKE THE MATTER TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA AND DIDN'T RULE OUT RETALIATION IN THE LONG RUN HOWEVER THEY SAID THE COMMUNITY WOULD WANT TO GET LEGAL BACKING FROM GATT FOR ANY RETALIATORY MOVES YESTERDAY'S DECISION INVOLVED CLAIMS THAT FOREIGN STEELMAKERS ARE DUMPING THEIR STEEL IN THE US OR SELLING IT AT PRICES BELOW FAIR VALUE THE DUTIES US PRODUCERS WON AGAINST JAPAN MOSTLY MORE THAN 20 WERE NEARLY DOUBLE WHAT THEY HAD EARLIER REQUESTED AND A 30 DUTY IMPOSED ON HOTROLLED STEEL FROM SOUTH KOREA WAS HIGHER THAN EXPECTED TOGETHER THE TWO COUNTRIES EXPORT SOME 45 MILLION TONS OF FLATROLLED STEEL TO THE US EACH YEAR THE DECISION WAS A TENTATIVE ONE WITH FINAL RULINGS EXPECTED AS EARLY AS APRIL IN ADDITION THE US INTERNATIONAL TRADE COMMISSION MUST DETERMINE WHETHER US INDUSTRY IS BEING INJURED BY THE IMPORTS BUT FOREIGN MANUFACTURERS WILL BE AFFECTED BY THE DECISION NOW BECAUSE THEY WILL HAVE TO PAY BONDS OR CASH DEPOSITS TO COVER THE TARIFFS PENDING A FINAL RULING THE US PRODUCERS ALSO WON FEES OF AS MUCH AS 29 ON GERMAN STEEL THE TARIFFS WENT AS HIGH AS 1092 ON PLATE IMPORTED FROM THE UK ANALYSTS BELIEVE DUTIES OF 10 OR MORE ARE SUFFICIENT TO DRIVE FOREIGN STEEL FROM THE MARKET HOWEVER THE US INDUSTRY DIDN'T GET EVERYTHING IT HAD HOPED FOR MOST OF THE DUTIES AGAINST CANADA WERE 10 OR LESS EVEN THOUGH THE INDUSTRY HAD SOUGHT DUTIES OF DOUBLE OR TRIPLE THAT WHEN IT FIRST FILED THE CASES LAST JUNE WHILE THE US STEELMAKERS' DUMPING COMPLAINTS TARGETED SOME 75 MILLION TONS OF FOREIGN STEEL VALUED AT ABOUT 35 BILLION CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES ESTIMATED IMPORTS WOULD FALL BY ABOUT TWO MILLION TONS BECAUSE OF THE RULING HE SAID FALLING IMPORTS FROM TARGETED COMPANIES AND COUNTRIES MIGHT BE OFFSET BY SURGING IMPORTS FROM OTHERS THE STEEL DISPUTE STARTED WINDING THROUGH THE FEDERAL TRADE APPARATUS LAST JUNE WHEN THE US STEEL INDUSTRY FILED A SLEW OF ANTIDUMPING AND COUNTERVAILING DUTY PETITIONS AGAINST FOREIGN STEEL PRODUCERS THE COMPLAINTS ACCUSED FOREIGN COMPANIES OF SELLING THEIR STEEL IN THE US BELOW FAIR VALUE AND RECEIVING UNFAIR GOVERNMENT SUBSIDIES THE US STEEL INDUSTRY FILED THE COMPLAINTS AFTER IMPORT QUOTAS SET BY VOLUNTARY RESTRAINT AGREEMENTS LAPSED AND THE MULTILATERAL STEEL AGREEMENT TALKS FALTERED IN A PRELIMINARY DECISION LAST AUGUST THE ITC A QUASIJUDICIAL BODY RULED THAT IN MOST CASES THERE WAS A REASONABLE CHANCE THAT IMPORTS WERE DOING MATERIAL INJURY TO US PRODUCERS THE CASES MOVED TO THE COMMERCE DEPARTMENT AND IN NOVEMBER THE DEPARTMENT IMPOSED PRELIMINARY TARIFFS AVERAGING 15 IN THE ANTISUBSIDY CASES THE DUMPING DUTIES ANNOUNCED YESTERDAY WILL BE ADDED TO THOSE TARIFFS COMMERCE SECRETARY BROWN TRIED TO PLAY DOWN THE POLITICAL SIGNIFICANCE OF THE RULINGS SAYING IN A STATEMENT THAT THE DECISIONS RESULT FROM LONG INVESTIGATIONS AND ARE NOT POLICY STATEMENTS BUT US STEEL ADVOCATES IN CONGRESS USED THE RULING AS AN OPPORTUNITY TO PUSH FOR A SETTLEMENT TO THE STEEL TRADE TALKS WHICH ARE SLATED TO START AGAIN IN GENEVA ON FEB 24 REP PETE VISCLOSKY D IND SAID I WOULD HOPE THIS WOULD BE A SIGNAL TO OUR TRADING PARTNERS THAT IT'S TIME TO HAVE SERIOUS NEGOTIATIONS EVEN FREDERICK TELMER CHAIRMAN OF STELCO INC THE CANADIAN STEELMAKER AND ONE OF THE COMPANIES HIT BY THE PRELIMINARY TARIFF DECISIONS SAID THE RULINGS WILL CAUSE STEEL NEGOTIATORS TO BE MORE REACTIVE TO THE FACT THAT SOMETHING NEEDS TO BE DONE FOR THEIR PART US STEELMAKERS APPLAUDED THE RULING OUR GOVERNMENT HAS FOUND DUMPING BY EXTRAORDINARY MARGINS SUBSTANTIATING OUR CLAIMS OF UNFAIR TRADE SAID CURTIS BARNETTE CHAIRMAN OF BETHLEHEM STEEL CORP HE SAID THE INDUSTRY WILL CERTAINLY LOOK FORWARD TO WORKING WITH THE CLINTON ADMINISTRATION ON THE MATTER 9301280101 930128 EXAMINING ENTITLEMENTS FOR THE MENTALLY ILL BY SALLY L SATEL AFTER THE SLAYING THIS MONTH IN THE BRONX OF AN 80YEAROLD WOMAN BY A MENTALLY ILL HOMELESS MAN WHO DISCONTINUED HIS MEDICATION NEW YORK'S GOV MARIO CUOMO ORDERED A ROUNDUP OF POTENTIALLY VIOLENT INDIVIDUALS SO COMMENCES IN NEW YORK STATE AT LEAST THE OVERDUE EXAMINATION OF A HEALTHCARE COST THAT MANY STRATEGISTS HAVE OVERLOOKED THE PATIENTS SPECIFICALLY THOSE WHO WILL NOT AND DO NOT COMPLY WITH TREATMENT FORMAL CONSEQUENCES FOR NONCOMPLIANCE BEGAN IN 1988 WHEN THE THIRD US CIRCUIT COURT OF APPEALS HELD THAT A BORDERLINE MENTALLY RETARDED MAN WITH EPILEPSY WAS NOT ENTITLED TO SOCIAL SECURITY DISABILITY BENEFITS BECAUSE THE LOW MEDICATION LEVELS IN HIS BLOOD SHOWED HE WAS NOT TAKING HIS PRESCRIBED ANTISEIZURE DRUG IN THE PRIVATE SECTOR HEALTH MAINTENANCE ORGANIZATIONS IN CONNECTICUT FOR EXAMPLE HAVE BEGUN TO WITHHOLD BENEFITS FROM PATIENTS WITH DRUG OR ALCOHOL PROBLEMS WHEN THEY RELAPSE REPEATEDLY THE CASE OF LARRY HOGUE A HOMELESS 45YEAROLD CRACKADDICTED VIETNAM VETERAN HAS BEEN REPORTED NATIONWIDE UNDER THE DRUG MR HOGUE BECOMES PSYCHOTIC AND VIOLENT TERRORIZES HIS NEW YORK CITY NEIGHBORHOOD IS TAKEN TO A HOSPITAL FOR PSYCHIATRIC CARE SEEKS DISCHARGE AND IS RELEASED THUS SOME 40 CYCLES HAVE ENSUED RETURNED TO THE STREET MR HOGUE USES HIS STATE AND FEDERAL ENTITLEMENTS OUR TAX DOLLARS TO FINANCE HIS HABIT WE AT THE YALE SCHOOL OF MEDICINE HAVE TREATED MANY LESSPUBLICIZED CASES MARY A A 25YEAROLD DEPRESSED WOMAN WHO DAILY USED INTRAVENOUS HEROIN WAS TWICE HOSPITALIZED IN ONE YEAR WITH BACTERIAL ENDOCARDITIS A POTENTIALLY LIFETHREATENING CONDITION IN WHICH A VALVE IN THE HEART IS INFECTED OVER WEEKS IN THE HOSPITAL MS A RECEIVED INPATIENT CARE WITH INTRAVENOUS ANTIBIOTICS AND AN ANTIDEPRESSANT WAS PRESCRIBED FOR HER MOOD ALL PAID FOR BY MEDICAID AT DISCHARGE SHE REFUSED SUBSTANCEABUSE TREATMENT AND FOLLOWUP FOR DEPRESSION WITHIN WEEKS SHE RESUMED HEROIN USE AND REINFECTED HERSELF A 43YEAROLD VETERAN JOE B RECEIVED 1200 PER MONTH TAX FREE FOR COMBATRELATED PSYCHOLOGICAL DIFFICULTIES UNLIKE MR HOGUE WHO RESISTED HOSPITALIZATION THIS PATIENT OVERUSED INPATIENT CARE MR B SPENT HIS CHECK ON COCAINE AND ALCOHOL BOTH DRUGS EXACERBATED HIS FLASHBACKS OF VIETNAM WHICH LED TO SUICIDAL THOUGHTS HE LIVED IN CRACK HOUSES OR IN SHELTERS UNTIL THE MONEY WAS GONE USUALLY TWO WEEKS INTO THE MONTH WHEN HE WOULD REAPPEAR AT THE VETERANS ADMINISTRATION HOSPITAL FOR ADMISSION BECAUSE HE FELT OUT OF CONTROL HOSPITALIZED MR B'S SYMPTOMS TENDED TO ABATE WITHIN TWO WEEKS WHEN THE NEXT CHECK WAS EXPECTED HE THEN REFUSED PRESCRIBED OUTPATIENT TREATMENT A PATTERN REPEATED SEVERAL TIMES IN A YEAR WHAT CAN BE DONE SHORT OF INSTITUTIONALIZATION ONE SOLUTION IS TO RESTRICT SUCH MENTAL PATIENTS' ABILITIES TO SPEND MONEY THAT COMES FROM THE PUBLIC WEAL SOCIAL SECURITY HAS A REPRESENTATIVE PAYEE SYSTEM THAT WILL ROUTE A PATIENT'S FUNDS THROUGH A CONSERVATOR WHO PAYS FOR BASIC NEEDS AND CONTROLS DISCRETIONARY INCOME HOWEVER UNTIL A PHYSICIAN ATTESTS TO THE PATIENT'S INABILITY TO RESPONSIBLY SELFMANAGE FUNDS A PAYER IS NOT GENERALLY ASSIGNED THE VA PAYMENT SYSTEM ALSO HAS A CONSERVATOR ARRANGEMENT BUT IT APPLIES ONLY TO PATIENTS WILLING TO AGREE TO IT MOST SUBSTANCE ABUSERS RESIST ALSO PHYSICIANS WHO DO BECOME INVOLVED IN THE LENGTHY LEGAL PROCESS TO PROTECT PATIENT FUNDS HAVE BEEN SUBJECTED TO THREATS OF RETALIATION FROM PATIENTS WITH HISTORIES OF VIOLENCE TO HELP PREVENT PEOPLE WITH MENTAL DISABILITIES FROM ABUSING ENTITLEMENTS AND IN THE PROCESS EXACERBATING THEIR OWN ILLNESSES A BETTER IDEA MIGHT BE DISABILITY PROGRAMS THAT CONTAIN BUILTIN MECHANISMS TO CONTROL MONIES TO PATIENTS WHO ARE IN POOR COMPLIANCE THESE ARE PATIENTS WHO FAIL TO TAKE MEDICATION OR KEEP TREATMENT APPOINTMENTS OR WHOSE USE OF DRUGS OR ALCOHOL LEADS TO THE DETERIORATION OF THEIR MENTAL HEALTH THE SAME LEGAL PROCESS THAT ALLOWS A PATIENT TO EXERCISE HIS OR HER RIGHT TO REFUSE TREATMENT COULD ALSO BE APPLIED TO THE RIGHT TO APPEAL SUCH RESTRICTED ACCESS TO ENTITLEMENTS FINALLY UNDER AN ENTITLEMENTWITHTERMS PROGRAM AN UNDUE BURDEN WOULD BE LESS LIKELY TO FALL ON PHYSICIANS OR ON FAMILY MEMBERS WITH MIXED FEELINGS ABOUT INTERFERING IN THEIR PATIENTS' OR RELATIVES' LIVES THIS IDEA WILL SURELY DRAW FIRE FROM CIVIL AND ECONOMIC LIBERTARIANS WHO BELIEVE THAT INDIVIDUALS HAVE A RIGHT TO SPEND MONEY AND BEHAVE AS THEY WISH REGARDLESS OF THE APPALLING DESTRUCTION OF LIFE THAT WE HAVE SEEN BUT IF SUBSTANCE ABUSERS CAN CLAIM THE RIGHT TO SUE SOCIAL SECURITY IN ORDER TO RECEIVE THEIR ENTITLEMENTS DIRECTLY SURELY MEDICAL PROFESSIONALS CAN TAKE THE RESPONSIBILITY TO PROTECT THE HEALTH OF INDIVIDUALS AND ENSURE THE PROPER USE OF COMMUNITY HEALTHCARE DOLLARS BY MAKING PATIENTS ACCOUNTABLE FOR THEIR BEHAVIOR DR SATEL IS AN ASSISTANT PROFESSOR OF PSYCHIATRY AT THE YALE UNIVERSITY SCHOOL OF MEDICINE WILLIAM GLAZER MD HELPED WITH THIS ARTICLE 9301280100 930128 TECHNOLOGY & HEALTH ONETHIRD OF ADULTS USE UNCONVENTIONAL TREATMENT BOSTON EACH YEAR A THIRD OF US ADULTS USE UNCONVENTIONAL MEDICAL TREATMENTS SUCH AS RELAXATION TECHNIQUES CHIROPRACTIC THERAPY AND SPIRITUAL HEALING MOSTLY WITHOUT TELLING THEIR MEDICAL DOCTORS ACCORDING TO A SURVEY BY RESEARCHERS HERE ESTIMATED OUTOFPOCKET SPENDING ON SUCH THERAPIES TOTALED ABOUT 103 BILLION IN 1990 AN AMOUNT COMPARABLE TO OUTOFPOCKET EXPENDITURES FOR ALL HOSPITAL CARE WHICH TOTALED 128 BILLION IN 1990 AND ALMOST HALF AS MUCH AS THE 235 BILLION THAT PATIENTS SPENT OUT OF POCKET FOR PHYSICIANS' SERVICES IN 1990 THE RESEARCHERS FOUND MOST USERS OF UNCONVENTIONAL THERAPY PAID THE ENTIRE COST OF SUCH TREATMENTS THEMSELVES THE SURVEY ALSO FOUND THAT THE USE OF UNORTHODOX THERAPIES SOME OF WHICH FLY IN THE FACE OF MEDICAL SCIENCE IS SIGNIFICANTLY MORE COMMON AMONG PEOPLE WHO HAVE ATTENDED COLLEGE THAN AMONG THOSE WHO HAVEN'T MOST PEOPLE USING SUCH TREATMENTS ALSO SEE MEDICAL DOCTORS BUT IN 72 OF CASES THEY DON'T TELL THEIR DOCTORS ABOUT IT THE STUDY LED BY DAVID M EISENBERG AT BETH ISRAEL HOSPITAL HERE IS REPORTED IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE 9301280099 930128 TRAVEL AUTOS BECOME A SCARCE ITEM AT RENTAL FIRMS BY JONATHAN DAHL STAFF REPORTER OF THE WALL STREET JOURNAL CAR RENTAL COMPANIES ARE RUNNING LOW ON THEIR MOST IMPORTANT ASSET CARS FORCED BY AUTO MAKERS' CUTBACKS AND PRICE INCREASES TO SLOW THEIR CAR BUYING AND HIT BY UNEXPECTED SURGES IN TRAVEL SOME RENTAL COMPANIES ARE RUNNING OUT OF VEHICLES AT SOME LOCATIONS THAT PREVIOUSLY HAPPENED ONLY DURING PEAK HOLIDAY PERIODS OR WHEN A CITY HAD A BIG CONVENTION OR SPORTS EVENT NOW THE SHORTAGES ARE UNPREDICTABLE THIS MONTH THEY HAVE OCCURRED EVERYWHERE FROM DALLAS TO ORANGE COUNTY CALIF FORCING SOME TRAVELERS TO USE LITTLEKNOWN RENTAL COMPANIES RENT ODDBALL VEHICLES OR TAKE CABS AND RENTAL CUSTOMERS GENERALLY ARE PAYING HIGHER PRICES WITH MORE INCREASES ON THE WAY WE'VE GOT AGENTS CALLING SIX OR SEVEN CAR RENTAL COMPANIES JUST TO GET ONE CAR SAYS THOMAS NULTY OF ASSOCIATED TRAVEL MANAGEMENT IN SANTA ANA CALIF IT'S NEVER BEEN LIKE THIS BEFORE TRAVEL EXPERTS BEGAN TO FEAR SHORTAGES LAST FALL WHEN CAR MAKERS STARTED SHRINKING DISCOUNTS AS WELL AS THE NUMBER OF CARS THEY SELL TO RENTAL COMPANIES THE RENTAL INDUSTRY IS EXPECTED TO BUY ABOUT 200000 FEWER CARS THIS YEAR THAN IN 1992 MANY TRAVEL CONSULTANTS EXPECT THE SHORTAGES TO WORSEN LATER THIS YEAR WHEN THE IMPACT OF THE CAR MAKERS' HIGHER PRICES IS FULLY FELT AND RENTAL FLEETS COULD START TO SHRINK SOME OF THE BIGGEST RENTAL COMPANIES HAVE BEEN ABLE TO MAINTAIN THEIR FLEET SIZE BY KEEPING OLDER CARS LONGER BUT FASTGROWING COMPANIES SUCH AS ALAMO RENT A CAR INC AND THRIFTY RENTACAR SYSTEM INC SAY THEY CAN NO LONGER INCREASE THEIR STOCK AS FAST AS THEY DID IN RECENT YEARS WE'VE HAD TO BE VERY CONSERVATIVE IN OUR PURCHASES SAYS A SPOKESWOMAN FOR THRIFTY A CHRYSLER CORP UNIT THAT LEAVES CAR RENTAL COMPANIES UNABLE TO RESPOND TO UNEXPECTED SURGES IN TRAVEL THRIFTY IS SOLD OUT NEXT WEEK IN DENVER WHICH HAS HAD A STRONGER SKI SEASON THAN EXPECTED BUDGET RENT A CAR CORP MEANWHILE SAYS IT HAS NOTICED A SURGE IN BUSINESS IN SOME CITIES LATELY WE'RE SEEING SOME SPOT SHORTAGES AND ARE ENCOURAGING PEOPLE TO BOOK EARLY A SPOKESWOMAN SAYS DAVID GELIEBTER A NEW YORK CITY BUSINESSMAN ARRIVED IN DALLAS EARLIER THIS MONTH WITHOUT HAVING RESERVED A CAR AND ALMOST ENDED UP WITH NO WHEELS IT GOT TO THE POINT WHERE I WAS CALLING UP COMPANIES WITH INITIALS HE SAYS ONE COMPANY GAVE HIM THE TELEPHONE NUMBER OF SOMEONE NAMED BILL THEY SAID HE WAS SOME GUY WHO DIDN'T HAVE AN OFFICE BUT HAD CARS MR GELIEBTER RECALLS EVENTUALLY A LOCAL RENTAL COMPANY FOUND AN EXTRA CAR A STATION WAGON FOR 45 A DAY 50 MORE THAN HE USUALLY PAYS IN DALLAS FOR A RECENT TRIP TO TAMPA FLA JOHN PAPA A STOCK ANALYST FROM NEW YORK WOUND UP TAKING CABS ALL DAY IT'S KIND OF HARD TO BELIEVE THAT YOU CAN'T FIND A CAR AT A MAJOR AIRPORT HE SAYS EVEN TRAVELERS WHO HAVE RESERVATIONS ARE LEARNING THAT'S NO GUARANTEE THINGS WILL GO SMOOTHLY DURING THE CHRISTMAS SEASON DOLLAR RENT A CAR SYSTEMS INC DIDN'T HAVE CARS TO FILL HUNDREDS OF RESERVATIONS IN SEVERAL FLORIDA CITIES ITS CUSTOMERS WAITED ANYWHERE FROM A FEW HOURS TO A FEW DAYS FOR CARS DOLLAR OWNED BY CHRYSLER BLAMES THE PROBLEM ON A DELAY IN SHIPMENTS FROM AUTO MAKERS IT TRIED TO APPEASE CUSTOMERS BY PAYING FOR TAXI RIDES AND OFFERING VOUCHERS FOR FUTURE RENTALS TRAVEL AGENTS SAY THEY HAVE NOTICED ANOTHER PROBLEM RENTAL COMPANIES VOIDING RESERVATIONS TO COMPENSATE FOR OVERBOOKING TOO MUCH THE INDUSTRY DENIES THE PRACTICE BUT MR NULTY OF ASSOCIATED TRAVEL MANAGEMENT SAYS MANY OF HIS CLIENTS HAVE BEEN TOLD AT RENTAL COUNTERS THAT THEIR NAMES WEREN'T ON RESERVATION LISTS THEN YOU GIVE YOUR CONFIRMATION NUMBER AND SUDDENLY THEY HAVE YOUR RESERVATION HE SAYS TRAVEL AGENTS SAY CUSTOMERS WITH RESERVATIONS SHOULD KEEP THEIR CONFIRMATION NUMBERS WHICH THEY ARE GIVEN WHEN THEY BOOK A CAR MANY RENTAL COMPANIES NOW ROUTINELY STICK CUSTOMERS WITH VANS OR STATION WAGONS AFTER PROMISING STANDARD CARS OVER THE PHONE INDUSTRY OFFICIALS ACKNOWLEDGE THIS CAN HAPPEN BUT SAY IT REFLECTS HOW STRAPPED THEY ARE FOR COMPACT CARS TO COMBAT THE SHORTAGES MR NULTY IS DEVELOPING A COMPUTER PROGRAM TO SEARCH RESERVATION SYSTEMS ROUND THE CLOCK IN HOPE OF FINDING LASTMINUTE CANCELLATIONS SEVERAL AGENCIES ALREADY HAVE SIMILAR PROGRAMS TO SEARCH FOR LOW AIR FARES THE SHORTAGE MAY HAVE A PERMANENT IMPACT ON THE INDUSTRY'S PRICING HERTZ CORP SAYS ITS RATES ARE 14 HIGHER THIS WINTER THAN A YEAR AGO AND IT PLANS TO RAISE PRICES AGAIN IN A FEW MONTHS THE COMPANY SAYS IT IS TRYING TO COVER THE COST OF MORE EXPENSIVE FLEETS BUT ADDS THAT THE INDUSTRY IS RAISING PRICES SIGNIFICANTLY FOR THE FIRST TIME IN MORE THAN A DECADE NONE OF THE PAST INCREASES HAVE EVER STUCK LIKE THIS A HERTZ SPOKESMAN SAYS 9301280098 930128 MARKETING & MEDIA ADVERTISING SCOUTS SET WISHES ON NEW STARS TO SIGN POSTSUPER BOWL DEALS BY KEVIN GOLDMAN WHEN THE WASHINGTON REDSKINS DEFEATED THE BUFFALO BILLS IN LAST YEAR'S SUPER BOWL MADISON AVENUE SAT OUT THE POSTGAME HOOPLA AND DIDN'T BOTHER RUSHING TO SIGN PLAYERS TO CELEBRITY ENDORSEMENTS BUT FOR A VARIETY OF REASONS INCLUDING LOOSENING PURSESTRINGS IN ADVERTISING AND THE JAZZY PERSONALITY OF THE DALLAS COWBOYS THE BETTING IS THAT SEVERAL PLAYERS IN SUPER BOWL XXVII THIS SUNDAY MAY EMERGE AS STARS AND END UP HUDDLING WITH ADVERTISERS OVER LUCRATIVE CONTRACTS ONCE THE FINAL WHISTLE IS BLOWN IN SOME WAYS ENDORSEMENT EXPERTS SAY THE BILLS HAVE THE MOST TO LOSE AND THE COWBOYS HAVE EVERYTHING TO GAIN WHEN THE TWO TEAMS MARCH ONTO THE FIELD FOR THE 618 PM EST KICKOFF IN PASADENA CALIF THIS YEAR'S SUPER SUNDAY MARKS THE THIRD STRAIGHT APPEARANCE FOR THE BUFFALO BILLS WHO HAVE LOST IN THEIR TWO PREVIOUS TRIPS IT IS UNLIKELY THAT MANY MARKETERS WOULD RELISH ASSOCIATING THEIR WARES WITH ANYONE ON A THREETIME LOSER OF A TEAM SPORTS MARKETERS SAY YET THE COWBOYS ONCE SELFSTYLED AS AMERICA'S TEAM HAVE MOUNTED AN IMPRESSIVE COMEBACK AFTER SEVERAL YEARS AS A FOOTBALL HASBEEN THEIR BENCH IS STOCKED WITH YOUNG GOODLOOKING SWEETTALKING NEWCOMERS JUST ITCHING FOR STARDOM A GREAT DEAL MORE IS AT STAKE FOR THE RIGHT PLAYERS THAN SIMPLE BRAGGING RIGHTS TO THE CHAMPIONSHIP AND THE 36000 PER PLAYER FOR THE WINNING TEAM THE LOSERS GET HALF THAT SUM FASTFOOD RESTAURANTS PAY 50000 FOR A SUPER BOWL ATHLETE TO APPEAR IN A SINGLE AD SOFTDRINK MAKERS CAN SHELL OUT AS MUCH AS 200000 FOR A SPOT HAVING A WINNING MUG SHOW UP ON A BOX OF WHEATIES MADE BY GENERAL MILLS COULD MEAN AN EXTRA 25000 TO 30000 SAYS DAVID BURNS OF BURNS SPORTS CELEBRITY SERVICE IN CHICAGO WHICH IS A CLEARING HOUSE OF SORTS FOR AD AGENCIES THAT WANT TO APPROACH SUPERSTAR JOCKS THE MOST PROMISING PROSPECTS ARE THE QUARTERBACKS THE COWBOYS' TROY AIKMAN IS FAVORED TO BE A RUNAWAY SUCCESS AS AN ENDORSER POSSESSED WITH COUNTRYBOY CHARM MR AIKMAN IS JUST 26 YEARS OLD CLEANCUT AND CAMERAHANDSOME AND IS KNOWN AS AN AWESOME PASSER ON THE TEAM THAT'S FAVORED TO WIN HE'S TROY DONAHUE WITH A SOUTHERN DRAWL SAYS BOB DORFMAN OF THE SAN FRANCISCO OFFICE OF THE AD AGENCY FOOTE CONE & BELDING WHO PREPARES AN ANNUAL ADVERTISERS' SCOUTING REPORT THE YOUNG QUARTERBACK COULD BE PICKED UP BY ANY PRODUCT THAT WANTS TO GET ACROSS DOWN HOME APPEAL MR DORFMAN SAYS HOWEVER THE OUTLOOK IS MIXED FOR THE BILLS' JIM KELLY HE APPEARED LAST SUMMER IN AN AD FOR NUPRIN PAIN RELIEVER MANUFACTURED BY BRISTOLMYERS SQUIBB BUT ODDLY NUPRIN PULLED THE SPOT IN FAVOR OF AGING TENNIS STARS JIMMY CONNORS AND CHRIS EVERT A SPOKESWOMAN FOR BRISTOLMYERS WON'T SAY WHY THE COMPANY DOESN'T REVIVE THE KELLY ADS TO CAPITALIZE ON HIS SUPER BOWL ROLE BUT SOME SPORTS MARKETERS SAY MR KELLY WHILE BLESSED WITH A GREAT ARM AND ONTHEFIELD TOUGHNESS ALSO IS BURDENED WITH A RATHER DULL TELEVISION PERSONALITY COLORLESS AND TOO LAID BACK TO MOVE PRODUCTS OFF THE SHELVES NOT TRUE COUNTERS MICHAEL BOGUCKI MARKETING DIRECTOR AT JIM KELLY ENTERPRISES IN BUFFALO NY HE HAS A VERY STRONG AND OBVIOUS PERSONALITY MR KELLY ALSO ISN'T CAMERASHY HAVING PLAYED A ROLE IN THE MOVIE COMEDY NECESSARY ROUGHNESS SEVERAL YEARS AGO AS WELL AS TURNING UP ON THE CAPITAL CITIES/ABC SOAP GENERAL HOSPITAL HIS AUTOBIOGRAPHY IS TITLED ARMED AND DANGEROUS SELECTING SPORTS CELEBRITIES IS AS TRICKY AS OH BUFFALO'S RUNANDSHOOT OFFENSE IT'S ALWAYS RISKY SPENDING 1 MILLION ON SOMEONE NEVER KNOWING WHAT THEY MIGHT DO THE NEXT DAY OFF THE FIELD SAYS FOOTECONE'S MR DORFMAN NOR IS IT AN EASY LEAP FROM FOOTBALL PLAYER TO ENDORSER IN THE FIRST PLACE THEY NEED TO HAVE HIGH VISIBILITY AND MUST BE EASILY RECOGNIZED YET FOOTBALL PLAYERS UNLIKE BASKETBALL OR BASEBALL PLAYERS APPEAR ON NATIONWIDE TELEVISION UNDER LAYERS OF PADDING AND IN A HELMET THAT HIDES THE ASSET ADVERTISERS WANT THE MOST YET SOME PLAYERS DO LEAP THAT OBSTACLE SAN FRANCISCO 49ER QUARTERBACK JOE MONTANA FOR INSTANCE WAS A SPOKESMAN FOR LA GEAR AND MEMBERS OF BOTH SUPER BOWL TEAMS HOPE TO CASH IN ON A GAME THAT'S BECOME A NATIONAL EVENT AFTER THE QUARTERBACKS THE ODDSON FAVORITE TO BE A KEY ENDORSER IS COWBOYS RUNNING BACK EMMITT SMITH EVEN BEFORE THE GAME HAS BEEN PLAYED REEBOK INTERNATIONAL AND WILSON SPORTING GOODS SIGNED THE WELLSPOKEN 23YEAROLD TO APPEAR IN ADS SAYS RICHARD HOWELL DIRECTOR OF ROBINSON HUMPHREY SPORTS ENTERPRISES WHICH REPRESENTS THE FORMER ROOKIE OF THE YEAR MR SMITH MAY BE THE MOST VALUABLE PLAYER OF THE GAME AND THEREFORE COULD BE THE PLAYER WHO TRIUMPHANTLY JOGS OFF THE FIELD AND DECLARES INTO A CAMERA I'M GOING TO WALT DISNEY WORLD SAYS NOVA LANKTREE PRESIDENT OF LANKTREE PASSPORT CELEBRITY NETWORK IN NORTHBROOK ILL JUST UTTERING THOSE SIX MAGIC WORDS FOR THE MAGIC KINGDOM IS WORTH 50000 TO 75000 SAYS BRANDON STEINER PRESIDENT OF STEINER SPORTS MARKETING IN NEW YORK WHO NEGOTIATED A DEAL WITH WALT DISNEY CO IN 1991 WHEN OJ ANDERSON OF THE NEW YORK GIANTS GOT THE HONORS ACCORDING TO MR STEINER BEFORE THE BIG GAME DISNEY OFFICIALS CONTACT ABOUT FIVE PLAYERS WHO ARE LIKELY CONTENDERS FOR MOST VALUABLE PLAYER THE CAMERAS ARE WAITING WHEN THE GAME ENDS AND THE PLAYER KNOWS WHAT TO DO HE SAYS IT'S NOT LIKE THE LINE NEEDS A LOT OF REHEARSAL WHILE DISNEY DEMOCRATICALLY WAITS TO SEE WHO WINS SOME SPORTS MARKETERS SAY THEIR PREFERENCE MAY BE ABOUT TO SHOW UP ON THE PROVERBIAL BOX OF WHEATIES SPORTS BROKERS ARE SPREADING THE WORD THAT A WHEATIES BOX ADORNED BY FOUR COWBOYS INCLUDING TROY AIKMAN AND EMMITT SMITH HAS POPPED UP IN DALLAS SUPERMARKETS A GENERAL MILLS SPOKESWOMAN SAYS THIS ISN'T THE CASE AT ALL IN THE PAST FIVE YEARS THE CEREAL MAKER HAS PRODUCED THREE SPECIAL PACKAGES FROM SUPER SUNDAY THE REDSKINS IN 1988 AND 1992 AND THE NEW YORK GIANTS IN 1991 BUT THIS YEAR THE COMPANY ISN'T SURE IT WILL PRODUCE A SUPER BOWL EDITION AT ALL BUT THEN A NEW WHEATIES BOX CAN BE TURNED AROUND IN TWO DAYS FOODMAKER INC'S JACK IN THE BOX IS TRYING TO SAVE ITS IMAGE AND ITS NAME THROUGH ADVERTISING AFTER HEALTH OFFICIALS TRACED A DEADLY OUTBREAK OF FOOD POISONING IN THE PACIFIC NORTHWEST TO TAINTED HAMBURGERS FROM THE FAST FOOD CHAIN JACK GOODALL CHAIRMAN OF FOODMAKER APPEARS IN A TELEVISION COMMERCIAL THAT BEGAN AIRING MONDAY ABOUT A WEEK AFTER SEVERE CASES OF FOOD POISONING INCLUDING THE DEATH OF A TWOYEAROLDWERE TRACED TO THE JACK IN THE BOX BURGERS LOS ANGELES AGENCY COHEN/JOHNSON CREATED THE COMMERCIALS AS WELL AS SIMILAR FULLPAGE NEWSPAPER ADS THAT RAN IN WASHINGTON STATE I CANNOT ADEQUATELY EXPRESS MY SORROW OVER THIS INCIDENT MR GOODALL SAYS IN THE SPOT TAPED IN HIS OFFICE AT THE COMPANY'S SAN DIEGO CALIF HEADQUARTERS AS A PARENT AND GRANDPARENT THESE EVENTS HAVE BEEN DEVASTATING TO ME AND TO ALL OF OUR EMPLOYEES MR GOODALL LISTS SAFETY MEASURES THE COMPANY HAS IMPLEMENTED SINCE THE OUTBREAK INCLUDING INCREASING COOKING TIME FOR HAMBURGERS TO MEET STATE REQUIREMENTS AND RETRAINING SOME OF ITS STAFF IN ADDITION THE COMPANY HAS DONATED 100000 TO THE LOIS JOY GALLER FOUNDATION A NONPROFIT NEW YORK GROUP THAT PROMOTES RESEARCH INTO HEMOLYTIC UREMIC SYNDROME WHICH CAN RESULT FROM THE POISONING MORE THAN 200 PEOPLE HAVE BEEN DIAGNOSED WITH THE POISONING OFFICIALS HAVE TRACED THE POISONING TO BACTERIA THAT TAINTED BEEF USED IN JACK IN THE BOX HAMBURGERS STATE HEALTH OFFICIALS SUSPECT THE BEEF COULD HAVE BEEN CONTAMINATED AT SLAUGHTERHOUSES IN CALIFORNIA COLORADO AND MICHIGAN SCOTT PAPER SCOTT PAPER CO PHILADELPHIA CONSOLIDATED AN ESTIMATED 20 MILLION IN EUROPEAN ADVERTISING WITH TWO AGENCIES WPP GROUP'S J WALTER THOMPSON AND TBWA ADVERTISING J WALTER THOMPSON'S EUROPEAN OPERATIONS WAS NAMED THE AGENCY FOR THE ANDREX AND SCOTTEX TOILET TISSUE BRANDS TBWA WILL HANDLE SCOTT'S KITCHEN TOWELS AND TISSUES BEER ACCOUNT G HEILEMAN BREWING CO LA CROSSE WIS TAPPED THE RICHARDS GROUP DALLAS TO CREATE ADS FOR ITS REGIONAL RAINIER BRAND IN PACIFIC NORTHWEST STATES AN ESTIMATED 3 MILLION ACCOUNT PREVIOUSLY HANDLED BY HECKLER & ASSOCIATES SEATTLE DEUTSCH/DWORIN NEW YORK HAS BEEN CREATING ADS FOR THE BEER OUTSIDE ITS NATIVE REGION SINCE LAST FALL FORD WPP GROUP'S J WALTER THOMPSON WON THE ESTIMATED 10 MILLION ACCOUNT FROM FORD DEALERS IN THE PHILADELPHIA REGION A NEW ACCOUNT THE AGENCY PLANS TO OPEN A SERVICE OFFICE IN PHILADELPHIA TO HANDLE THE ACCOUNT COMPUTER ACCOUNT PSIONINC THE US OPERATIONS OF PSION PLC HIRED HILL HOLLIDAY CONNORS COSMOPULOS BOSTON TO HANDLE A NEW US AD ACCOUNT FOR A TEST PROGRAM OF THE SERIES 3 POCKETSIZE PC 9301280097 930128 TIME WARNER MUSCLES ITS UNDERWRITERS BY RANDALL SMITH AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WALL STREET INVESTMENT BANKERS DON'T USUALLY LET THEMSELVES GET PUSHED AROUND BY THEIR CORPORATE CLIENTS BUT THAT'S EXACTLY WHAT HAPPENED THIS WEEK TO SALOMON INC AND LAZARD FRERES & CO WHO WERE LEFT WITH MILLIONS OF DOLLARS IN PAPER LOSSES ON TIME WARNER INC NOTES AFTER THEY BOWED TO THE DEMANDS OF THE ENTERTAINMENT CONGLOMERATE TIME WARNER HAS BLITZED THE SECURITIES MARKET IN THE PAST SIX WEEKS WITH A RAPID SERIES OF NOTE AND BOND OFFERINGS TOTALING 343 BILLION TIME WARNER IS USING THE CASH RAISED BY SELLING ITS DEBT TO RETIRE ITS HIGHCOST 11 PREFERRED STOCK BUT SALOMON AND LAZARD GOT HURT WHEN TIME WARNER EAGER TO TAKE ADVANTAGE OF PLUNGING INTEREST RATES UNLOADED ITS LATEST BATCH OF 1 BILLION IN 30YEAR BONDS TUESDAY THE PROBLEM WALL STREET UNDERWRITERS LED BY SALOMON WERE STILL TRYING TO FIND BUYERS FOR TIME WARNER'S LAST 1 BILLION OFFERING OF FIVEYEAR AND SEVENYEAR NOTES THAT THE UNDERWRITERS BOUGHT FROM TIME WARNER ONLY A WEEK EARLIER ON JAN 19 THIS WEEK'S HUGE NEW LOAD OF TIME WARNER BONDS HAS HAMMERED THE PRICE OF THE TIME WARNER NOTES HELD BY SALOMON LAZARD AND THEIR CUSTOMERS ACCORDING TO BOND TRADERS WHILE 10 MILLION OF SEVENYEAR TREASURY NOTES HAS RISEN 50000 IN PRICE SINCE JAN 19 THE SAME AMOUNT OF THE TIME WARNER SEVENYEAR NOTES HAS FALLEN BY 25000 THAT HIT OF 075 IN PRINCIPAL VALUE IN EIGHT DAYS IS A BIG BLOW FOR BOND MANAGERS WHO LIVE AND DIE BY SMALL DIFFERENTIALS IN THE PERFORMANCE OF THEIR PORTFOLIOS PEOPLE CLOSE TO THE UNDERWRITERS ESTIMATE THAT 50 TO 80 OF THE TWO NOTE ISSUES BOUGHT BY UNDERWRITERS LAST WEEK REMAIN UNSOLD BECAUSE THE UNDERWRITERS STILL HOLD AT LEAST 500 MILLION OF THE NOTES THEY HAVE LOST SEVERAL MILLION DOLLARS ON PAPER ON THE SALE ACCORDING TO ONE PERSON CLOSE TO THE GROUP WHAT MADE MATTERS WORSE SALOMON AS LEAD MANAGER HAD THE LEGAL RIGHT TO DELAY THIS WEEK'S TIME WARNER BOND SALE BY THREE DAYS UNTIL TOMORROW UNDER A SOCALLED BLACKOUT AGREEMENT WITH TIME WARNER THE STANDARD PROVISION IS DESIGNED TO GIVE THE UNDERWRITERS TIME TO SELL THE NOTES WITHOUT BEING SWAMPED BY AN UNEXPECTED NEW OFFERING HOWEVER ACCORDING TO THREE PEOPLE CLOSE TO THE UNDERWRITING GROUP TIME WARNER MADE IT CLEAR THAT IF SALOMON DIDN'T ACQUIESCE AND WAIVE THE BLACKOUT PERIOD ALLOWING TIME WARNER TO TAKE ADVANTAGE OF A BIG BOND RALLY MONDAY SALOMON'S ENTIRE RELATIONSHIP WITH TIME WARNER COULD BE IN JEOPARDY AND THAT COULD DEPRIVE SALOMON OF ITS CHANCE FOR BIG FEES ON FUTURE SALES OF SECURITIES AND CORPORATE ASSETS FOR TIME WARNER ALTHOUGH SALOMON AGREED TO THE WAIVER THE FIRM DECLINED TO PARTICIPATE IN THIS WEEK'S TIME WARNER BOND SALE WHICH IS LED BY MERRILL LYNCH & CO AND COMANAGED BY BEAR STEARNS & CO AND WERTHEIM SCHRODER MERRILL AND LAZARD COMANAGED LAST WEEK'S OFFERING EXECUTIVES OF SALOMON MERRILL AND LAZARD ALL DECLINED TO COMMENT A SPOKESWOMAN FOR TIME WARNER CONFIRMED THAT THE MEDIA COMPANY SOUGHT AND RECEIVED THE REQUIRED WAIVER FROM SALOMON BUT SAID IT WOULD BE INAPPROPRIATE TO COMMENT FURTHER BUT WALL STREET PROFESSIONALS INVOLVED IN THE SITUATION SAID EXECUTIVES OF BOTH SALOMON AND LAZARD WERE LEFT FUMING THEY SAID MANY CUSTOMERS WHO HAD BOUGHT THE TIME WARNER NOTES WERE ANGRY WITH SALOMON FOR WAIVING THE WAITING PERIOD WITH TIME WARNER FOR FLOODING THE MARKET WITH PAPER AND WITH MERRILL FOR LEADING THE LATEST SALE IT CREATES A BAD TASTE IN EVERYBODY'S MOUTH TO HAVE A BILLION AND ANOTHER BILLION AND ANOTHER BILLION SAID BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP WILLIAM GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO SAID THE SERIES OF SALES HAS INUNDATED THE MARKET WITH TIME WARNER PAPER HE SAID THAT FOR TIME WARNER TO BE ABLE TO BRING 2 BILLION OF DEBT WITH THAT KIND OF RATING SHOWS A LOT OF MOXIE OR MUSCLE OR A COMBINATION OF BOTH SO FOR THE COMPANY IT WAS A COUP THE TWO NEW ISSUES OF TIME WARNER DEBT WERE RATED TRIPLEBMINUS BY STANDARD & POOR'S CORP ITS LOWEST INVESTMENTGRADE RATING AND BA2 BY MOODY'S INVESTORS SERVICE INC A JUNKBOND RATING BOND MARKET WATCHERS SAY THE EPISODE SHOWS THE ABILITY OF CORPORATE GIANTS SUCH AS TIME WARNER TO PLAY BIG WALL STREET FIRMS OFF AGAINST EACH OTHER FIFTEEN YEARS AGO BEFORE THE ADVENT OF THE ADVANCE SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION BIG CORPORATIONS WOULD PLAN THEIR ENTIRE PROGRAM OF BOND SALES IN ADVANCE WITH A SMALL CIRCLE OF UNDERWRITERS NOW THE COMPANIES CAN FIRE OFF BOND SALES AT A MOMENT'S NOTICE MOVING QUICKLY TO TAKE ADVANTAGE OF MARKET CONDITIONS AND LETTING BIG WALL STREET FIRMS BID FOR THE BONDS WALL STREET FIRMS DON'T WANT TO ALIENATE BIG ISSUERS BECAUSE THE BOND SALES CARRY SIZABLE FEES THE FEES EXPRESSED AS A PERCENTAGE DIFFERENCE BETWEEN THE PRICES AT WHICH THE INVESTMENT BANK BUYS THE BONDS FROM THE ISSUER AND RESELLS THEM TO CUSTOMERS WERE 075 FOR TIME WARNER'S SEVENYEAR NOTES EQUIVALENT TO 3750000 FOR THE 500 MILLION ISSUE ON THE 1 BILLION OF BONDS THE FEE WAS 1 OR 10 MILLION SOME UNDERWRITERS SAY THE EPISODE POINTS UP THE CONTINUING INFLUENCE AT TIME WARNER OF ODED ED ABOODI A TOUGH NEGOTIATOR WHO ACTED AS THE COMPANY'S DEALMAKER ON BEHALF OF TIME WARNER'S LATE CHAIRMAN STEVEN J ROSS MR ABOODI WAS THE ARCHITECT OF A 27 BILLION STOCK RIGHTS OFFERING BY TIME WARNER THAT WAS SCUTTLED AFTER OBJECTIONS BY THE SECURITIES AND EXCHANGE COMMISSION A TIME WARNER SPOKESMAN DECLINED TO COMMENT MR ABOODI COULDN'T BE REACHED 9301280096 930128 BUSINESS BRIEF GRAND UNION HOLDINGS CORP WILL SPEND 55 MILLION ON 19 CAPITAL PROJECTS TO IMPROVE AND EXPAND ITS STORES SEAGATE TECHNOLOGY INC ACQUIRED A 25 STAKE IN CLOSELY HELD SUNDISK CORP AS A PART OF AN ALLIANCE TO PRODUCE NEW COMPUTER PRODUCTS CRSS INC'S SIRRINE ENGINEERS UNIT RECEIVED A DEPARTMENT OF ENERGY CONTRACT TO DESIGN AND BUILD THE 248 MILLION COAL GASIFICATION PRODUCT IMPROVEMENT FACILITY NEAR MORGANTOWN WVA HEALTHINFUSION INC SAID IT COMPLETED THE ACQUISITION OF VITAL CHOICE INC TERMS WEREN'T DISCLOSED RAYTHEON CO SAID ITS ELECTROMAGNETIC SYSTEMS DIVISION RECEIVED A 774 MILLION AIR FORCE CONTRACT FOR ELECTRONIC COUNTERMEASURE PODS FOR TACTICAL AIRCRAFT 9301280095 930128 BUSINESS BRIEF MARSHALL INDUSTRIES FIRM SEES PROFIT FOR QUARTER BELOW ANALYSTS' PREDICTIONS MARSHALL INDUSTRIES SAID IT EXPECTS NET INCOME IN ITS THIRD QUARTER ENDING FEB 28 TO BE BETWEEN 50 CENTS AND 60 CENTS A SHARE SHARPLY BELOW ANALYSTS' PROJECTIONS OF ABOUT 74 CENTS A SHARE IN THE FISCAL QUARTER ENDED FEB 29 1992 THE DISTRIBUTOR OF ELECTRONIC PARTS EARNED 48 MILLION OR 56 CENTS A SHARE INVESTORS REACTED NEGATIVELY TO THE NEWS THE COMPANY'S SHARES FELL 98 OR 3875 TO 3550 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING A SPOKESMAN SAID MARSHALL'S ANTICIPATED EARNINGS DECLINE WAS DUE TO UNUSUAL NONRECURRING EXPENSES ASSOCIATED WITH ITS CONVERSION TO A NEW MANAGEMENT INFORMATION SOFTWARE SYSTEM EXCLUDING THE EXPENSES EARNINGS WOULD BE ABOUT 70 CENTS A SHARE HE SAID 9301280094 930128 CORRECTIONS & AMPLIFICATIONS JOHN OPEL RETIRED CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP IS A DIRECTOR OF IBM A CHART LISTING THE MEMBERS OF IBM'S BOARD AND ACCOMPANYING YESTERDAY'S PAGEONE ARTICLE ON CHANGES AT THE COMPANY DIDN'T INCLUDE MR OPEL'S NAME 9301280093 930128 US POLICIES IN '80S SWELLED RANKS OF POOR REPORT SAYS WASHINGTON CHANGES IN GOVERNMENT POLICIES RESULTED IN SUBSTANTIAL INCREASES IN POVERTY BETWEEN 1979 AND 1989 A HOUSE SUBCOMMITTEE REPORT SAID THE NUMBER OF POOR PEOPLE ROSE BY 63 MILLION DURING THE DECADE THE SUBCOMMITTEE ATTRIBUTED ALMOST HALF THE INCREASE TO CUTS IN GOVERNMENT PROGRAMS THAT ARE DESIGNED TO HELP LOWERINCOME INDIVIDUALS THIS REPORT DEMONSTRATES THAT GOVERNMENT ACTIONS WHICH ESSENTIALLY GUTTED SOCIAL PROGRAMS IN THE EARLY 1980S DIRECTLY CONTRIBUTED TO A TREMENDOUS INCREASE IN POVERTY SAID REP ROBERT MATSUI D CALIF CHAIRMAN OF THE HOUSE WAYS AND MEANS SUBCOMMITTEE ON HUMAN RESOURCES THE REPORT ALSO FOUND THAT ALTHOUGH THE NUMBER OF PEOPLE IN POVERTY INCREASED DURING BOTH THE 19801982 AND 19901991 RECESSIONS GOVERNMENT PROGRAMS SOFTENED THE BLOW DURING THE LATTER SLUMP THIS IS PRIMARILY BECAUSE UNLIKE THE WELFARE CUTS OF 1981 WHICH FURTHER INCREASED POVERTY SAFETY NET PROGRAMS WEREN'T CUT AND WELFARE ROLLS WERE ALLOWED TO EXPAND IN ORDER TO MEET THE GROWING NEED IN THE LATER RECESSION THE REPORT SAID 9301280092 930128 BUSINESS BRIEF CABOT OIL & GAS CORP COMPANY TO BUY PROPERTIES FOR 365 MILLION IN PREFERRED CABOT OIL & GAS CORP BASED IN HOUSTON SAID IT SIGNED A LETTER OF INTENT TO PURCHASE OIL AND NATURAL GAS PROPERTIES FROM A PRIVATE SELLER IN EXCHANGE FOR 365 MILLION OF PREFERRED STOCK CABOT SAID THE PROPERTIES ARE IN THE ANADARKO BASIN OF TEXAS AND OKLAHOMA AND THE EAST TEXAS BASIN THEY CONTAIN THE EQUIVALENT OF 525 BILLION CUBIC FEET OF PROVEN GAS RESERVES CABOT SAID IT WILL ISSUE 730000 SHARES OF 3125 CONVERTIBLE PREFERRED STOCK TO THE SELLER THE PREFERRED STOCK WILL HAVE A STATED VALUE OF 50 A SHARE FOR A TOTAL VALUE OF 365 MILLION IT WILL BE CONVERTIBLE INTO CABOT CLASS A COMMON STOCK AT 21 A SHARE THE ACQUISITION IS EXPECTED TO CLOSE BY APRIL 1 CABOT SAID 9301280091 930128 BUSINESS BRIEF CERIDIAN CORP COMPUTER FIRM HAD PROFIT OF 106 MILLION IN 4TH PERIOD CERIDIAN CORP CAPPING A TURNAROUND SINCE SPINNING OFF ITS COMPUTER HARDWARE OPERATIONS LAST YEAR POSTED NET INCOME OF 106 MILLION OR 25 CENTS A SHARE IN THE FOURTH QUARTER INCLUDING RESULTS OF DISCONTINUED OPERATIONS THE MINNEAPOLIS INFORMATION SERVICES COMPANY REPORTED A LOSS OF 152 MILLION OR 36 CENTS A SHARE IN THE 1991 FOURTH QUARTER REVENUE ROSE 12 TO 2252 MILLION FROM 2012 MILLION A YEAR AGO OFFICIALS AT THE COMPANY FORMERLY KNOWN AS CONTROL DATA CORP SAID THE RESULTS DEMONSTRATE THE VALUE OF SPINNING OFF CONTROL DATA SYSTEMS INC LAST YEAR FACTORING IN THE PERFORMANCE OF BOTH CONTROL DATA SYSTEMS STOCK AND CERIDIAN SHARES THE COMPANIES' STOCK PRICE SOARED 60 DURING 1992 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CERIDIAN SHARES ROSE 375 CENTS TO 1575 9301280090 930128 INTERNATIONAL WORLD WIRE TO SOFTEN THE PAIN OF RUSSIA'S MARKET REFORMS PRIME MINISTER VIKTOR CHERNOMYRDIN HAS ORDERED HIGHER SUBSIDIES FOR FARMS AND WITH THE APPROACH OF PLANTING SEASON HE URGED CANCELING MUCH OF THE FARMS' DEBT WRITING OFF LOANS USED FOR NEW BUILDINGS AND OTHER IMPROVEMENTS IT WASN'T CLEAR WHETHER MR CHERNOMYRDIN ACTED UNILATERALLY DEPUTY PRIME MINISTER BORIS FYODOROV HADN'T SEEN THE ORDER AND COULD NOT BELIEVE IT WAS TRUE A SPOKESMAN SAID EARLIER THIS MONTH MR CHERNOMYRDIN WAS FORCED TO REPEAL HIS PRICE FREEZE ON CONSUMER GOODS MR CHERNOMYRDIN WHO TOOK OFFICE LAST MONTH IN A COMPROMISE BETWEEN REFORMERS AND HARDLINERS HAD VOWED TO PROP UP PRIVATE AND STATERUN INDUSTRIES IN A BID TO RAISE OUTPUT AND RESTRAIN UNEMPLOYMENT THE LATEST ORDER EXTENDED SOME SUBSIDIES FOR MEAT AND POULTRY PRODUCTS SOLD TO THE STATE AND BOOSTED TO 50 THE SUBSIDIES ON OUTLAYS BY FARMERS FOR OIL ENERGY AND FUEL IT ALSO URGED MOVING AWAY FROM SUBSIDIES AND TOWARD PRICE GUARANTEES A NONSMOKING WOMAN IN BRITAIN WON AN OUTOFCOURT AWARD OF 23000 FROM HER EMPLOYER AS COMPENSATION FOR DAMAGE TO HER HEALTH SHE CLAIMED WAS CAUSED BY SECONDHAND CIGARETTE SMOKE SETTLEMENT OF THE PERSONALINJURY CLAIM SAID TO BE THE FIRST PASSIVESMOKING CASE IN BRITAIN DOESN'T CREATE A LEGAL PRECEDENT VERONICA BLAND 36 YEARS OLD SAID SHE DEVELOPED CHRONIC BRONCHITIS AS A RESULT OF INHALING SMOKE FOR 11 YEARS AT HER OFFICE THE STOCKPORT METROPOLITAN BOROUGH COUNCIL IN NORTHWEST ENGLAND THE COUNCIL BANNED SMOKING IN 1990 BRITAIN HAS SAID IT WOULD CONSIDER OUTLAWING SMOKING IN PUBLIC AND WORK PLACES IF VOLUNTARY CURBS FAIL CHINA WILL OPEN 11 AREAS TO RETAIL VENTURES BETWEEN FOREIGN AND CHINESE PARTNERS TO HELP MEET GROWING CONSUMER DEMAND CHINA HAS JUST FOUR FOREIGNRUN RETAIL STORES UNDER THE NEW RULES JOINT VENTURES MAY OWN AND OPERATE STORES IN BEIJING SHANGHAI TIANJIN CANTON DALIAN AND QINGDAO AND THE SPECIAL ECONOMIC ZONES OF XIAMEN SHANTOU HAINAN ZHUHAI AND SHENZHEN SEPARATELY FOREIGN INVESTMENT AND LOANS TO CHINA LAST YEAR TOTALED A RECORD 17 BILLION INCLUDING DIRECT OUTLAYS OF 9 BILLION OR MORE THAN DOUBLE THE 42 BILLION IN 1991 AS BUSINESS AND MARKET CONTROLS WERE EASED FURTHER GOLD CONSUMPTION IN SEVEN ASIAN NATIONS LAST YEAR ROSE 17 TO 670 TONS FROM A YEAR EARLIER AS LIBERALIZED ECONOMIES PROSPERED AND GOLD PRICES FELL THE WORLD GOLD COUNCIL IN GENEVA PREDICTED THE REGION'S DEMAND THIS YEAR WILL GROW AT LEAST 15 REFLECTING INCREASING AFFLUENCE ESPECIALLY AMONG CAREER WOMEN WHO BUY JEWELRY AND MORE SPENDING BY AN EMERGING MIDDLE CLASS LAST YEAR GOLD CONSUMPTION WAS STRONGEST IN HONG KONG TAIWAN AND CHINA AND HEALTHY IN MALAYSIA SINGAPORE SOUTH KOREA AND THAILAND THAILAND HALVED TO 20 ITS TARIFFS ON IMPORTED WORD PROCESSORS CASH REGISTERS TYPEWRITERS COPY MACHINES AND ELECTRONIC CALCULATORS IN A BID TO ENCOURAGE BUSINESSES TO USE THE EQUIPMENT CASH REGISTERS WOULD MAKE TRANSACTIONS EASIER FOR TAX AUTHORITIES TO TRACE BURMA WILL ISSUE FOREIGNEXCHANGE CERTIFICATES IN US DENOMINATIONS OF 1 5 AND 10 STARTING FEB 4 THE GOVERNMENT SAID IT HOPED TO EARN MORE HARD CURRENCY BY MAKING IT EASIER FOR TOURISTS TO CHANGE MONEY BUT SUCH SYSTEMS USED IN SOCIALIST ECONOMIES OFTEN ARE INTENDED TO RESTRAIN THE BLACK MARKET BURMA'S BLACKMARKET RATE IS MORE THAN 10 TIMES THE KYAT'S RATE OF 62815 TO THE DOLLAR FOREIGN CURRENCIES HAVE BEEN OFFLIMITS TO BURMESE CITIZENS WHO NOW MAY HOLD THE NEW DOLLAR SCRIP AND OPEN FOREIGNCURRENCY ACCOUNTS THOUGH JAPANESE INDUSTRIES HAVE MADE HEADWAY IN REDUCING EXCESS INVENTORIES THEIR EFFORT IS COLLIDING WITH CONTINUED WEAK DOMESTIC DEMAND WHICH COULD CAUSE PRODUCTION TO FALL EVEN FURTHER OUTPUT LAST MONTH FELL A SEASONALLY ADJUSTED 1 FROM NOVEMBER FAR WORSE THAN THE 01 FALL OFFICIALS EXPECTED UNADJUSTED PRODUCTION PLUNGED 82 THE GOVERNMENT SAID OUTPUT IS UNLIKELY TO DROP BELOW CURRENT EXTREMELY LOW LEVELS BUT ANALYSTS SAID THIS DEPENDS ON WHETHER CONSUMERS LOOSEN THEIR TIGHT GRIP ON SPENDING AND REVERSE RECENT PLUNGES IN RETAIL AND DURABLE GOODS PURCHASES RETAIL SALES LAST YEAR FELL 19 AFTER YEARS OF INCREASES AND DEPARTMENT STORE SALES LAST MONTH PLUMMETED 57 THE SHARPEST OF SEVEN CONSECUTIVE YEARTOYEAR DROPS SOME ANALYSTS PREDICTED DEMAND WILL REMAIN STAGNANT EVEN IN THE BESTCASE SCENARIO OF CUTS IN INCOME TAXES AND INTEREST RATES THE ECONOMY ALREADY IN THE DOLDRUMS IS UNDER PRESSURE FROM PIVOTAL SECTORS SUCH AS AUTOS WHERE FURTHER PRODUCTION CUTS ARE POSSIBLE GOLF HAS BECOME THE CORRECT CORPORATE RAGE IN SOUTH KOREA GOLF COURSE VISITS LAST YEAR SURGED 32 TO 58 MILLION FROM A YEAR EARLIER AND 64 FROM 1990 AND MAY RISE THIS YEAR TO 8 MILLION THE NUMBER OF COURSES GREW TO 75 FROM 64 IN 1991 AND 12 MORE ARE TO OPEN THIS YEAR SEOUL HAS HUNDREDS OF WIREENCLOSED DRIVING RANGES THE CHILEAN TELEPHONE COMPANY CTC INSTALLED WHAT IT SAID IS THE FIRST PUBLIC SATELLITEPHONE BOOTH IN ANTARCTICA RATES ARE THE SAME AS IN CHILE A CALL TO PUNTA ARENAS COSTS 14 CENTS FOR THREE MINUTES 9301280089 930128 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 69 DAYS 312 70 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 322 180 TO 239 DAYS 332 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 278 THREE MONTHS 288 SIX MONTHS 304 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 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 307 90 DAYS 310 120 DAYS 312 150 DAYS 316 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 950 JAPAN 450 SWITZERLAND 763 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 25 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 763 60 DAYS 771 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 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 766 60 DAYS 775 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301280088 930128 FOREIGN EXCHANGE STERLING PLUNGES CONTINUING TO REACT TO LOWER UK RATES AS DOLLAR RISES BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STERLING FELL SHARPLY AS IT CONTINUED TO BE HURT BY LOWER UK INTEREST RATES LED BY GAINS AGAINST THE POUND THE DOLLAR CREPT HIGHER IN LARGELY TECHNICAL TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15865 MARKS UP FROM 15764 MARKS LATE TUESDAY AND AT 12410 YEN COMPARED WITH 12356 YEN STERLING WAS TRADING AT 15110 DOWN FROM 15387 THE POUND WAS QUOTED AT 23972 MARKS DOWN FROM 24256 MARKS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 15855 MARKS AND AT 12424 YEN THE UK BASE LENDING RATE WAS UNEXPECTEDLY CUT TO 6 FROM 7 TUESDAY AFTER DROPPING MORE THAN 1 AGAINST THE MARK TUESDAY THE POUND APPEARED AT FIRST TO HAVE FOUND A RESTING PLACE AROUND 242 MARKS DEALERS SAID BUT LINGERING FEARS OF ANOTHER CUT ALONG WITH TOUGH TALK FROM BUNDESBANK OFFICIALS ON GERMAN INTEREST RATES LEFT MARKET PARTICIPANTS RELUCTANT TO HOLD POUNDS DEALERS SAID YOU'RE NOT GOING TO TAKE A CHANCE AT THIS POINT ESPECIALLY WITH THE BUNDESBANK RATTLING THEIR SABERS ON INTEREST RATES SAID LOUIS RAPPAPORT FOREIGN EXCHANGE MANAGER AT SOCIETE GENERALE IN NEW YORK ECHOING COMMENTS BY BUNDESBANK PRESIDENT HELMUT SCHLESINGER A DAY EARLIER TWO BUNDESBANK OFFICIALS SAID THE TIME STILL ISN'T RIGHT FOR AN EASING OF GERMAN INTEREST RATES DESPITE A LOOMING RECESSION IN GERMANY BRITISH OFFICIALS ON THE OTHER HAND APPEAR TO HAVE STOPPED WORRYING ABOUT KEEPING RATES UP TO STABILIZE STERLING DEALERS SAID FOCUSING INSTEAD ON RESCUING THE UK ECONOMY AND WITH MANY ANALYSTS CALLING FOR YET ANOTHER RATE CUT THE MARKET FEARS A CHAOTIC BRITISH ECONOMIC POLICY SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN & WECHSELBANK AG IN NEW YORK THERE'S NO SENSE OF CONTROL HE SAID MARKET PARTICIPANTS EVIDENTLY REJECT THE ARGUMENT THAT WITH BRITISH INFLATION WEAK LOWER RATES ARE LAYING THE GROUNDWORK FOR A POWERFUL RECOVERY AND THUS A STRONGER CURRENCY THE LONGTERM PLAYERS ARE LOOKING FOR PERHAPS SLIGHTLY LOWER LEVELS TO GO IN MR AMENDOLA SAID I STILL SEE SOME MORE DOWNSIDE DEALERS SAID THE POUND'S NEXT TARGET COULD BE ITS 1992 LOW OF 23709 MARKS SET OCT 5 THERE IS A SIMILAR LACK OF LONGTERM INTEREST IN THE DOLLAR AS SKEPTICISM MOUNTS ABOUT THE STRENGTH OF THE US ECONOMIC RECOVERY DEALERS SAID I DON'T REALLY SEE A FUNDAMENTAL REASON TO BUY THE DOLLAR SAID MR RAPPAPORT OF SOCIETE GENERALE BUT THE DOLLAR'S RELATIVE STABILITY ALONG WITH ITS GAINS AGAINST THE POUND ENCOURAGED SOME INVESTORS TO COVER OVERSOLD DOLLAR POSITIONS DEALERS SAID STERLING'S WEAKNESS PROVIDED A LITTLE UNDERPINNING FOR THE DOLLAR MR RAPPAPORT SAID BUT WITH LITTLE NEWS TO MOVE THE MARKET DEALERS SAID THE DOLLAR LACKED BROADER DIRECTION FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN PROVIDED SCANT IMPETUS TO TRADE YESTERDAY WITH HIS TESTIMONY BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS DEALERS SAID ERIK LEHTIS VICE PRESIDENT AT CREDIT AGRICOLE IN NEW YORK SAID MR GREENSPAN CAME DOWN ON BOTH SIDES OF THE FENCE DEALERS SAID THE MARKET HAD BEEN LOOKING FOR ANY SIGN THE FED WAS PREPARED TO LOWER INTEREST RATES BUT FOUND FEW HINTS IN THE CAREFULLY WORDED TESTIMONY 9301280087 930128 INTERNATIONAL BRIEF SIAM CEMENT CO PROFIT INCREASE OF 23 FOR '92 IS TERMED A DISAPPOINTMENT THAILAND'S SIAM CEMENT CO REPORTED THAT 1992 UNCONSOLIDATED NET INCOME ROSE 23 A RESULT THAT ANALYSTS CALLED DISAPPOINTING PROFIT ROSE TO 398 BILLION BAHT 1562 MILLION FROM 389 BILLION A YEAR EARLIER HOWEVER EARNINGS WERE DEPRESSED BY THE ACCELERATED DEPRECIATION OF COSTS FOR A NEW CEMENT PLANT THAT CAME ON LINE IN THE FOURTH QUARTER SIAM CEMENT IS DEPRECIATING THE COST OF THE 96 BILLIONBAHT PLANT THOUGHT TO BE THE LARGEST AND MOST TECHNOLOGICALLY ADVANCED IN THE WORLD OVER FIVE YEARS FAR LESS THAN THE 15 TO 30YEAR LIFE OF THE EQUIPMENT THE DEPRECIATION RESULTED IN A CHARGE OF 760 MILLION BAHT AND PULLED DOWN PROFIT SIGNIFICANTLY SAID YUWANA RATANAWICHIEN AN ANALYST AT BARING RESEARCH LTD IN BANGKOK THE COMPANY'S CEMENT SALES FELL 13 TO 3335 BILLION BAHT FROM 338 BILLION BAHT TOTAL SALES EDGED UP TO 3571 BILLION BAHT FROM 356 BILLION BAHT SIAM CEMENT PRESIDENT CHUMPOL NALAMLIENG DECLINED TO COMMENT ON THE RESULTS OR TO OFFER PROJECTIONS FOR 1993 9301280086 930128 THREE FIRMS SEEK DELAY IN AT&T MCCAW VENTURE WASHINGTON THREE REGIONAL TELEPHONE COMPANIES ASKED THE FEDERAL COMMUNICATIONS COMMISSION TO HOLD UP AMERICAN TELEPHONE & TELEGRAPH CO'S PROPOSED ALLIANCE WITH MCCAW CELLULAR COMMUNICATIONS INC THE THREE BELL ATLANTIC CORP NYNEX CORP AND SOUTHWESTERN BELL CORP ASKED THE AGENCY TO INVESTIGATE THE ALLIANCE THEY SUGGESTED THE FCC SHOULD LIFT REGULATORY AND ANTITRUST RESTRICTIONS THAT HURT THEIR ABILITY TO COMPETE AGAINST A COMBINED AT&T AND MCCAW IF RESTRICTIONS CAN'T BE LIFTED SIMILAR LIMITS SHOULD BE PLACED ON AN AT&TMCCAW ALLIANCE THEY ARGUED AT&T BASED IN BASKING RIDGE NJ ANNOUNCED LAST NOVEMBER THAT IT WAS NEGOTIATING TO BUY A 33 STAKE IN MCCAW BASED IN KIRKLAND WASH FOR 373 BILLION AND WOULD ACQUIRE AN OPTION FOR VOTING CONTROL THE BELLS ARGUED THAT A COMBINED AT&T AND MCCAW WOULD CREATE A DOMINANT NATIONWIDE VERTICALLY INTEGRATED TELECOMMUNICATIONS SERVICE COMPANY THEY ADDED MCCAW WOULD THROUGH AT&T HAVE ACCESS TO PERHAPS THE MOST VALUABLE DATA IN THE CELLULAR INDUSTRYITS COMPETITORS' CUSTOMER LISTS THE PHONE COMPANIES ALSO COMPLAINED THAT AT&T COULD GIVE MCCAW TECHNICAL INFORMATION ABOUT COMPETING CELLULAR SYSTEMS 9301280085 930128 INTERNATIONAL BRIEF VEBA AG GERMAN ENERGY FIRM POSTS 19 DROP IN PROFIT FOR 1992 DESPITE A HEALTHY 12 RISE IN REVENUE VEBA AG SAID ITS GROUP NET INCOME FELL 19 FOR 1992 THE GERMAN ENERGY COMPANY'S NET INCOME TOTALED 900 MILLION MARKS 5703 MILLION DOWN FROM 11 BILLION MARKS A YEAR EARLIER ACCORDING TO PROVISIONAL FIGURES REVENUE TOTALED 67 BILLION MARKS UP FROM 595 BILLION MARKS STILL THE RESULTS WEREN'T AS BAD AS SOME ANALYSTS HAD FORECAST MARKET WATCHERS HAD PREDICTED A PROFIT DROP OF 20 TO 25 THE COMPANY SAID THAT IN THE FOURTH QUARTER ITS OIL AND CHEMICAL OPERATIONS PLACED DOWNWARD PRESSURE ON PROFITS VEBA'S CHEMICAL OPERATIONS POSTED A CLEAR LOSS IN THE FOURTH QUARTER WHILE OIL OPERATIONS SAW A SHARP EROSION IN PROFITS PARTIALLY OFFSETTING THIS VEBA'S ELECTRICAL PRODUCTION OPERATIONS AND ITS TRADE AND SERVICE OPERATIONS SHOWED STRONG PERFORMANCES IN THE QUARTER 9301280084 930128 BUSINESS BRIEF MOORE CORP BUSINESSFORMS MAKER SAYS IT MAY POST SMALL 1992 LOSS MOORE CORP SAID IT EXPECTS TO REPORT A SMALL LOSS FOR 1992 AFTER TAKING A 77 MILLION US PRETAX CHARGE AGAINST EARNINGS MAINLY RELATED TO A RESTRUCTURING OF ITS EUROPEAN BUSINESS MOORE A TORONTOBASED MAKER OF BUSINESS FORMS SAID IT BELIEVES ITS 1992 PROFIT BEFORE THE RESTRUCTURING CHARGE AMOUNTED TO 60 CENTS A SHARE THE RESTRUCTURING CHARGE EQUALS 62 CENTS A SHARE THE COMPANY SAID IN 1991 MOORE HAD PROFIT OF 881 MILLION OR 91 CENTS A SHARE ON SALES OF 249 BILLION MOORE SAID ITS CASH OUTLAY FOR THE RESTRUCTURING WILL AMOUNT TO ABOUT 40 MILLION MAINLY TO COVER COSTS OF REDUCING STAFF AND ELIMINATING CERTAIN ASSETS DESPITE THIS THE COMPANY SAID ITS FINANCIAL CONDITION REMAINS STRONG 9301280083 930128 BUSINESS BRIEF LUKENS INC INVESTMENT OF 86 MILLION IS PLANNED FOR NEW FACILITY LUKENS INC COATESVILLE PA CITING CORPORATE STRATEGY TO EXPAND IN CARBON ALLOY AND STAINLESS STEEL SAID IT WILL MAKE AN 86 MILLION CAPITAL INVESTMENT TO BUILD AN ADVANCED CUSTOMDESIGNED SPECIALTY STEEL PLATE AND SHEET PROCESSING SYSTEM THE FACILITY TO BE INSTALLED AT LUKENS' CONSHOHOCKEN PLANT NEAR PHILADELPHIA WILL MAKE CARBON AND ALLOY PLATE STEEL FOR LUKENS STEEL AND STAINLESS STEEL PRODUCTS FOR WASHINGTON STEEL BOTH LUKENS UNITS THE SYSTEM WHICH WILL BEGIN OPERATING IN OCTOBER 1994 WILL ALLOW LUKENS TO EXPAND STEEL PLATE AND SHEET PRODUCTION CAPACITY REDUCE MANUFACTURING COSTS IMPROVE YIELDS AND MONITOR QUALITY FOR CUSTOMERS THIS WILL PROVIDE US WITH SIGNIFICANT GROWTH POTENTIAL AT A FAR LOWER COST THAN BUILDING AN ENTIRELY NEW FACILITY LUKENS CHAIRMAN RW VAN SANT SAID HE ADDED THAT LAST APRIL'S 270 MILLION ACQUISITION OF WASHINGTON STEEL WAS PART OF A BROADER STRATEGY TO EXPAND MARKET SHARE 9301280082 930128 BUSINESS BRIEF NEIMAN MARCUS GROUP INC CHAIRMAN DISPUTES FORECAST SENDING STOCK DOWN BY 2 NEIMAN MARCUS GROUP INC STOCK FELL 375 CENTS OR 2 TO 18625 A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AFTER ITS MAJORITY OWNER CONTRADICTED AN OUTSIDER'S EARNINGS FORECAST AND SAID IT DIDN'T PLAN TO ACQUIRE MORE SHARES RICHARD SMITH CHAIRMAN OF NEIMAN AND OF GENERAL CINEMA CORP WHICH OWNS 65 OF NEIMAN'S SHARES SAID AT NEIMAN'S ANNUAL MEETING THAT GENERAL CINEMA DIDN'T PLAN TO BUY ANY PUBLICLY HELD SHARES OF NEIMAN HE ALSO SAID THAT A PUBLISHED ESTIMATE THAT NEIMAN WOULD EARN 50 CENTS TO 70 CENTS A SHARE IN THE FISCAL YEAR ENDING JULY 31 WAS OVERLY AGGRESSIVE A SPOKESMAN SAID THAT MOST ANALYSTS ESTIMATE NEIMAN WILL EARN 25 CENTS TO 35 CENTS A SHARE THIS YEAR IN FISCAL 1992 IT REPORTED A NET LOSS OF 21 CENTS A SHARE THE DISPUTED PROJECTIONS WERE MADE BY MARIO GABELLI WHOSE GABELLI FUNDS INC HAS A 199 STAKE IN NEIMAN IN AN INTERVIEW REPORTED IN BARRON'S MAGAZINE'S JAN 25 ISSUE 9301280081 930128 BUSINESS BRIEF JOHNSON & JOHNSON VOLUNTARY SEPARATION OFFER IS MADE TO UNIT'S EMPLOYEES JOHNSON & JOHNSON SAID IT OFFERED VOLUNTARY SEPARATION TO NEARLY 800 OR ALMOST 20 OF THE SALARIED EMPLOYEES OF ITS ETHICON INC UNIT FEWER THAN 200 OF THE EMPLOYEES WHO HAVE 15 OR MORE YEARS WITH THE COMPANY ARE EXPECTED TO ACCEPT THE OFFER A J&J SPOKESMAN SAID ADDING THAT THE MOVE ISN'T EXPECTED TO AFFECT EARNINGS ETHICON BASED IN SOMERVILLE NJ SELLS SUTURES AND RELATED SURGICAL PRODUCTS THE EARLY RETIREMENT OFFER THE FIRST MADE BY JOHNSON & JOHNSON IS PART OF A CONTINUING COSTREDUCTION PROGRAM A SPOKESMAN FOR THE HEALTHCAREPRODUCTS COMPANY SAID HE DECLINED TO DISCLOSE DETAILS OF THE OFFER THE COMPANY BASED IN NEW BRUNSWICK NJ IS SPONSORING COUNSELING SESSIONS FOR EMPLOYEES AND THEIR SPOUSES TO EXPLAIN THE DETAILS OF THE OFFER HE SAID EMPLOYEES WHO ACCEPT THE OFFER WILL LEAVE THE COMPANY MARCH 31 THE SPOKESMAN SAID 9301280080 930128 BUSINESS BRIEF NATIONAL HERITAGE INC COMPANY PLANS COMBINATION WITH EVERGREEN HEALTHCARE NATIONAL HERITAGE INC SAID IT HAD AGREED IN PRINCIPAL TO A BUSINESS COMBINATION WITH EVERGREEN HEALTHCARE LTD THE INDIANAPOLIS IND OWNER AND OPERATOR OF LONGTERM CARE FACILITIES ANNOUNCED LAST MONTH THAT A COMMITTEE OF ITS INDEPENDENT DIRECTORS WAS INVOLVED IN MERGER DISCUSSIONS WITH EVERGREEN ALSO AN OPERATOR OF LONGTERM CARE FACILITIES WHICH OWNS ABOUT EIGHT MILLION SHARES OR ABOUT 58 OF NATIONAL HERITAGE'S COMMON STOCK OUTSTANDING THE 58 STAKE WAS BOUGHT FOR 84 MILLION IN CASH AND STOCK IN 1992 NATIONAL HERITAGE SAID THE AGREEMENT CALLS FOR THE ISSUANCE OF 325 MILLION NEW NATIONAL HERITAGE SHARES TO THE PARTNERS OF EVERGREEN AND ITS AFFILIATES AFTER THE MERGER ABOUT 87 OF NATIONAL HERITAGE'S SHARES WOULD BE HELD BY EVERGREEN'S OWNERS WITH THE BALANCE BEING HELD BY THE PUBLIC THE COMPANY SAID NATIONAL HERITAGE SAID THE MERGER REMAINS SUBJECT TO APPROVAL BY ITS BOARD AND SHAREHOLDERS COMPLETION OF A DEFINITIVE AGREEMENT AND CERTAIN OTHER CONDITIONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NATIONAL HERITAGE SHARE CLOSED AT 2125 UNCHANGED 9301280079 930128 TECHNOLOGY BRIEF ALKERMES INC FIRM GETS SECOND PATENT ON ITS CARRIER TECHNOLOGY ALKERMES INC BASED IN CAMBRIDGE MASS SAID IT RECEIVED A SECOND US PATENT ON ITS CARRIER TECHNOLOGY FOR TRANSPORTING DRUG MOLECULES TO THE BRAIN THE CLAIMS IN THE PATENT INCLUDE METHODS FOR DELIVERING NERVE GROWTH FACTOR TO THE BRAIN BY LINKING IT TO MOLECULES THAT CAN PENETRATE THE BLOODBRAIN BARRIER A PREVIOUS PATENT RELATING TO THIS TECHNOLOGY WAS ISSUED OCT 13 ADDITIONAL PATENT APPLICATIONS DIRECTED TO OTHER ASPECTS OF THE CARRIER TECHNOLOGY ARE STILL PENDING A REPORT DESCRIBING THE DELIVERY OF NERVE GROWTH FACTOR TO THE BRAIN USING THIS CARRIER TECHNOLOGY WAS RECENTLY PUBLISHED BY RESEARCHERS FROM THE UNIVERSITY OF COLORADO AND ALKERMES IN THE JAN 15 ISSUE OF THE JOURNAL SCIENCE THE RESULTS OF THIS STUDY DEMONSTRATED THE UTILITY OF THE METHODS FOR INTRAVENOUS NERVE GROWTH FACTOR THERAPY AND MAY HAVE IMPORTANT IMPLICATIONS IN THE TREATMENT OF DEGENERATIVE BRAIN DISEASES SUCH AS ALZHEIMER'S DISEASE ALKERMES SAID 9301280078 930128 COMMODITIES COTTON FUTURES DECLINE FOR THIRD STRAIGHT DAY AS FUND MANAGERS RETREAT FROM LONG POSITIONS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COTTON FUTURES PRICES PLUNGED FOR A THIRD CONSECUTIVE DAY SKIDDING 186 CENTS OR JUST SHY OF THEIR DAILY TWOCENT LIMIT TO 5794 CENTS A POUND FOR MARCH DELIVERY ON THE NEW YORK COTTON EXCHANGE COTTON FUTURES HIT BY HEAVY SELLING BY COMMODITY FUNDS HAVE TUMBLED MORE THAN FIVE CENTS A POUND SINCE FRIDAY THE THREEDAY DECLINE FROM FRIDAY'S HIGH OF 6320 CENTS MARKS A SHARP REVERSAL OF THE 12 CENTSAPOUND RALLY IN COTTON PRICES THAT HAD OCCURRED SINCE LATE OCTOBER THERE'S BEEN A FLIGHT FROM LONG POSITIONS BY SPECULATORS AND FUNDS SAID ERNEST SIMON A VICE PRESIDENT WITH PRUDENTIAL SECURITIES A GROWING SENSE THAT THE MARKET WAS RIPE FOR A CORRECTION TRIGGERED THE LIQUIDATION OF LONG POSITIONS OR BETS ON RISING PRICES BY MANAGERS OF POOLED COMMODITY FUNDS MR SIMON SAID ALSO UNDERMINING COTTON FUTURES HE SAID WERE PERSISTENT RUMORS THAT LESS DESIRABLE COTTON FROM ARIZONA MIGHT BE TENDERED FOR DELIVERY AGAINST THE MARCH CONTRACT STEPHEN PLATT A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO CONCURRED THIS ARIZONA COTTON IS NOT WANTED BY THE MILLS AND HENCE THE PERSISTENT SPECULATION THAT IT MIGHT BE TENDERED FOR DELIVERY AGAINST THE ACTIVE MARCH CONTRACT CONTINUES TO WEIGH ON PRICES BOTH MESSRS SIMON AND PLATT SEE COTTON STABILIZING IN THE NEAR TERM I THINK WE COULD SEE COTTON TEST THE MID50 CENT RANGE BEFORE TURNING AROUND MR SIMON PREDICTED THE MARKET SHOULD SEE SOME BUYING FROM THE TRADE AT THE CURRENT LOW PRICES ADDED MR PLATT THOMAS MUELLER SENIOR COTTON FUTURES ANALYST WITH MERRILL LYNCH SAID THAT COTTON FUNDAMENTALS ARE BULLISH DESPITE STAGNANT DEMAND SUPPLIES ARE TIGHTENING DRASTICALLY AND SHOULD GIVE STRONG LONGTERM SUPPORT TO PRICES AT 56 CENTS A POUND WE BELIEVE THAT THE TRADE WILL ACCUMULATE HEAVY LONG POSITIONS BECAUSE AT THOSE LEVELS THE FUTURES PRICE WILL LOOK AN EXCELLENT SOURCE OF VALUE RELATIVE TO CASH MARKET PRICES HE SAID IF COMMODITY FUNDS TRY TO PRESS THE MARKET MUCH FURTHER DOWNWARD I THINK THEY'RE GOING TO GET BLOWN OUT OF THE WATER IN OTHER COMMODITY MARKETS YESTERDAY ORANGE JUICE FUTURES PLUNGED TO THEIR LOWEST LEVEL SINCE 1977 ON A REPORT OF A LARGER BRAZILIAN CROP FOR THE 199394 SEASON ON THE NEW YORK COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY SKIDDED 355 CENTS TO 7330 CENTS A POUND A REPORT FROM A BRAZILIAN TRADE GROUP SAID THAT NATION'S CROP THE SECOND LARGEST IN THE WORLD WOULD COME IN AT THE UPPER END OF ANALYSTS' AND TRADERS' EXPECTATIONS AT 2928 MILLION BOXES UP FROM 2896 MILLION A YEAR EARLIER A BOX IS 408 KILOGRAMS OR NEARLY 90 POUNDS THE SHARP DROP IN ORANGE JUICE FUTURES PRICES THIS YEAR REFLECTS THE BURDENSOME SUPPLY SITUATION GIVEN THIS MOST RECENT REPORT FROM BRAZIL SAID STEPHEN PLATT A SENIOR ANALYST WITH DEAN WITTER IN CHICAGO THE OVERSUPPLY DOESN'T SHOW ANY SIGN OF ABATEMENT HE SAID ADDING THAT ORANGE JUICE FUTURES REMAIN VULNERABLE TO BEARISH TECHNICAL FACTORS COFFEE COFFEE FUTURES CONTINUED THEIR SLIDE ON A LACK OF ANY SUPPORTIVE NEWS FROM THE CONTINUING ROUND OF NEGOTIATIONS IN LONDON WITH TRADERS AND SPECULATORS NOW BEGINNING TO FOCUS ALMOST ENTIRELY ON CONCERNS ABOUT THE SIZE OF THE BRAZILIAN CROP COFFEE FOR MARCH DELIVERY FINISHED AT 5775 CENTS A POUND DOWN 015 CENT ON THE COFFEE SUGAR AND COCOA EXCHANGE IN NEW YORK SINCE THE BEGINNING OF THE YEAR COFFEE FUTURES PRICES HAVE SLID AROUND TWO CENTS A DAY ON AVERAGE AMID A GLUTTED MARKET UNLESS THE BRAZILIAN CROP IS BAD THIS YEAR THE COFFEE MARKET WILL REMAIN WEAK SAID PETER GREENHALGH AN ANALYST WITH LANDELL MILLS COMMODITIES A COMMODITY RESEARCH FIRM BASED IN OXFORD ENGLAND MR GREENHALGH AND OTHER ANALYSTS SAID THAT THE INTERNATIONAL COFFEE ORGANIZATION TALKS AREN'T LIKELY TO YIELD A MAJOR ACCORD BETWEEN PRODUCERS AND CONSUMERS A DEADLINE HAS BEEN SET FOR MARCH THE LAST ACCORD BROKE DOWN IN JULY 1989 AND SEVERAL ATTEMPTS TO PATCH TOGETHER A NEW EXPORTQUOTA AGREEMENT HAVE FAILED LUMBER LUMBER FUTURES PRICES SOARED THE DAILY LIMIT FOR THE THIRD CONSECUTIVE DAY AT THE CHICAGO MERCANTILE EXCHANGE REACHING A RECORD HIGH PRICE THE PRICE OF THE LUMBER FUTURES CONTRACT FOR MARCH DELIVERY ROSE 5 TO SETTLE AT 29350 PER THOUSAND BOARD FEET ON FRIDAY THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS IN DECEMBER ROSE TO A SEASONALLY ADJUSTED RATE OF 1302000 UNITS FROM A REVISED 1234000 UNITS IN NOVEMBER COUPLED WITH SUPPLY SHORTAGES FROM OVERWORKED LUMBER MILLS IN CANADA'S BRITISH COLUMBIA REGION THE HOUSING STARTS NUMBER HAS EXERTED INTENSE UPWARD PRICE PRESSURE ON THE MERC'S SCANTILY TRADED LUMBER FUTURES CONTRACT AS THE US CONSTRUCTION INDUSTRY APPARENTLY SWINGS INTO HIGH GEAR BUILDING NEW HOMES ORDERS SUBMITTED TO CANADA'S LUMBER MILLS HAVE OUTPACED THE MILLS' ABILITY TO PROCESS WOOD ANALYSTS SAID 9301280077 930128 BUSINESS BRIEF MICROSOFT CORP DISTRIBUTION CHANGES TARGET BULKBUYING ORGANIZATIONS MICROSOFT CORP AS PART OF A GROWING EFFORT TO SELL ITS SOFTWARE TO LARGE ORGANIZATIONAL USERS SAID IT HAS BEGUN A PROGRAM WITH CERTAIN DISTRIBUTORS AND RESELLERS TO MAKE IT EASIER FOR LARGE CUSTOMERS TO BUY ITS PRODUCTS UNDER THE PROGRAM WHICH MICROSOFT SAID WILL STREAMLINE ITS DISTRIBUTION SYSTEM THE REDMOND WASH COMPANY IS OFFERING VOLUMELICENSING OPTIONS AND OTHER PRICE BREAKS FOR BULK BUYERS MICROSOFT SAID CUSTOMERS HAVE BEEN COMPLAINING ABOUT THE DIFFICULTIES IN ACQUIRING SOFTWARE IN LARGE QUANTITIES AND ABOUT THE LONG TIME IT TAKES TO REACH SPECIAL LICENSING AGREEMENTS TO USE MICROSOFT'S SOFTWARE AS A PART OF THE PROGRAM MICROSOFT ALSO SAID IT ADJUSTED EUROPEAN PRICES ON KEY SOFTWARE APPLICATIONS TO ELIMINATE WIDE COUNTRYTOCOUNTRY DIFFERENCES IN PRICES PRICES ACROSS EUROPE WILL NOW BE KEPT TO WITHIN 5 OF EACH OTHER IT SAID 9301280076 930128 WESTINGHOUSE'S PAUL E LEGO RESIGNS AS CHIEF EXIT OF LATEST EXECUTIVE TO BE PUSHED BY FIRMS SETS OFF RACE FOR JOB BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PAUL E LEGO WESTINGHOUSE ELECTRIC CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPPED DOWN THE LATEST IN A SERIES OF CORPORATE CHIEFS TO RESIGN IN THE MIDST OF FINANCIAL TROUBLES AND PRESSURE FROM DIRECTORS AND SHAREHOLDERS MR LEGO'S DEPARTURE WHICH IS EFFECTIVE IMMEDIATELY SETS OFF A RACE FOR THE JOB OF CHIEF EXECUTIVE THE BOARD WHICH HAS SET UP A FOURMEMBER PANEL OF OUTSIDE DIRECTORS TO HEAD THE SEARCH WILL CONSIDER BOTH INSIDE AND OUTSIDE CANDIDATES SAID RICHARD M MORROW A WESTINGHOUSE DIRECTOR AND RETIRED AMOCO CORP CHIEF EXECUTIVE WHO WAS NAMED CHAIRMAN AMONG INSIDERS THE LEADING CANDIDATES FOR CHIEF EXECUTIVE ARE BURTON STANIAR 50 YEARS OLD HEAD OF THE WESTINGHOUSE BROADCASTING UNIT JOHN YASINSKY 53 HEAD OF THE COMPANY'S POWER SYSTEMS UNIT AND ROBERT WATSON 46 CHIEF EXECUTIVE SINCE JULY OF THE COMPANY'S TROUBLED WESTINGHOUSE FINANCIAL SERVICES INC UNIT OTHER POSSIBLE CANDIDATES INCLUDE GARY M CLARK 57 WHO WAS NAMED ACTING CEO YESTERDAY AND HAS BEEN MANAGING THE COMPANY'S EFFORTS TO SELL BUSINESSES TO RAISE CASH AND ANTHONY MASSARO JR 48 HEAD OF THE COMPANY'S ENVIRONMENTAL UNIT MR MORROW SAID THE BOARD HASN'T DECIDED WHETHER A NEW CHIEF EXECUTIVE WOULD ALSO BECOME CHAIRMAN ALTHOUGH WESTINGHOUSE HAS BEEN STRUGGLING UNDER THE BAD LOANS OF ITS FINANCIAL SERVICES UNIT ALMOST SINCE MR LEGO NOW 62 TOOK THE HELM IN JULY 1990 HIS DEPARTURE CAME AS A SURPRISE TO MANY WESTINGHOUSE MANAGERS AND SHAREHOLDERS IN LATE NEW YORK STOCK EXCHANGE TRADING WESTINGHOUSE SHARES WERE UP 25 CENTS AT 14 LAST NOVEMBER THE COMPANY ANNOUNCED A PLAN TO RAISE CASH BY SELLING THE CREDIT UNIT ALONG WITH SEVERAL OTHER BUSINESSES MOLLIFYING INSTITUTIONAL INVESTORS THAT HAD BEEN PRESSING WESTINGHOUSE FOR RAPID CHANGE IN DECEMBER IT WENT FURTHER BY ANNOUNCING GOVERNANCE CHANGES THAT GAVE INCREASED POWER TO SHAREHOLDERS THE ODD THING IS THAT LEGO SEEMED TO BUY MORE TIME THAN HE USED SAID ED DURKIN SPECIAL PROJECTS DIRECTOR OF THE NATIONAL CARPENTERS UNION AN ACTIVIST WESTINGHOUSE SHAREHOLDER STILL HE ADDED I DON'T THINK LEGO WOULD HAVE DONE IT RESIGNED WITHOUT FIRM NUDGING FROM THE BOARD ADDED RICHARD KOPPES GENERAL COUNSEL OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM OR CALPERS THE STATE PENSION FUND THAT OWNS 06 OF WESTINGHOUSE'S SHARES THE BOARD WAS VERY MUCH IN CHARGE OF THE SITUATION THEY'VE DONE THE RIGHT THING A PERSON CLOSE TO THE SITUATION SUGGESTED BOARD MEMBERS MAY HAVE BEGUN TO LOSE CONFIDENCE IN MR LEGO OVER THE HANDLING OF THE DIVESTITURE PROGRAM PARTICULARLY THE FAILURE 10 DAYS AGO OF AN ATTEMPT TO SELL THE CREDIT UNIT'S ENTIRE LOAN PORTFOLIO TO GENERAL ELECTRIC CO WHICH HAD WALKED AWAY FROM A SIMILAR ATTEMPT A YEAR EARLIER A NUMBER OF DIRECTORS PROBABLY HAD SOME DOUBTS ABOUT GOING TO GE A SECOND TIME THE PERSON SAID THEN WHEN IT FELL THROUGH AGAIN THERE WAS EGG ON HIS FACE MR LEGO YESTERDAY SAID THAT AS CHAIRMAN HE HAD BEEN WORKING SEVEN DAYS A WEEK 14 HOURS A DAY ON THE MOST COMPLEX SET OF PROBLEMS EVER HANDED A CHAIRMAN IN THE PROCESS HE SAID I SHORTCHANGED MY FAMILY AND NOW I'M GOING TO MAKE UP FOR THAT DEFENDING HIS RECORD I RECAPITALIZED THE COMPNY IN THE SPACE OF TWO YEARS HE SAID THAT THE BOARD HADN'T ASKED FOR HIS RESIGNATION BUT ALSO HADN'T URGED HIM TO STAY ON MR LEGO'S RESIGNATION FOLLOWS THE RESIGNATION EARLIER THIS WEEK OF JOHN AKERS AS CHAIRMAN AND CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP IN ADDITION JAMES ROBINSON III WHILE RETAINING THE POST OF CHAIRMAN AT AMERICAN EXPRESS CO GAVE UP THE CHIEF EXECUTIVE'S JOB TO HIS CHOSEN SUCCESSOR HARVEY GOLUB AND LATE LAST YEAR GENERAL MOTORS CORP CHAIRMAN AND CHIEF EXECUTIVE ROBERT STEMPEL WAS REMOVED FROM HIS JOB AS WAS KENNETH OLSEN FOUNDER AND PRESIDENT OF DIGITAL EQUIPMENT CORP AT WESTINGHOUSE NONE OF THE POTENTIAL INSIDE SUCCESSORS TO MR LEGO IS WELL KNOWN TO THE BROADER BUSINESS COMMUNITY AND SOME ON WALL STREET SUGGESTED THAT NONE WOULD BE UP TO THE CHALLENGE OF SOLVING WESTINGHOUSE'S PROBLEMS WHAT IS REALLY NEEDED HERE IS SOME OUTSIDE MANAGEMENT SAID MAUREEN LENTZ AN ANALYST AT ROULSTON & CO IN CLEVELAND IF THE BOARD SETTLES ON AN OUTSIDER IT WOULD BE A SHARP BREAK WITH THE PAST THE TRADITIONAL ROUTE TO THE CHIEF EXECUTIVE'S JOB HAS BEEN THROUGH THE COMPANY'S MANUFACTURING BUSINESSES THE NEW CHIEF EXECUTIVE WILL FACE AS MR LEGO PUT IT A VERY COMPLEX SITUATION NOT ONLY DOES THE COMPANY HAVE TO SELL A NUMBER OF BUSINESS UNITS TO PAY DOWN A 6 BILLION REVOLVING CREDIT LINE DUE AT THE END OF 1994 IT ALSO HAS FACED LACKLUSTER RESULTS IN ITS CORE BUSINESSES ALL HAVE SUFFERED FROM THE SLOW ECONOMY WHILE THE COMPANY'S 3 BILLION ELECTRONIC SYSTEMS UNIT HAS LAID OFF NEARLY 4000 IN RESPONSE TO CUTS IN THE US DEFENSE BUDGET LAST YEAR THE COMPANY HAD A LOSS OF 129 BILLION OR 381 A SHARE WEIGHED DOWN BY CHARGES FROM ITS CREDIT UNIT IN THE FOURTH QUARTER WESTINGHOUSE HAD A NET LOSS OF 118 BILLION OR 344 A SHARE ALSO WEIGHED DOWN FROM CREDIT UNIT CHARGES MR MORROW SAID THE BOARD'S SEARCH COMMITTEE IS HEADED BY RENE C MCPHERSON RETIRED CHAIRMAN OF DANA CORP AND OTHER MEMBERS ARE WILLIAM H GRAY III PRESIDENT OF THE UNITED NEGRO COLLEGE FUND DAVID T MCLAUGHLIN PRESIDENT OF THE ASPEN INSTITUTE AND RICHARD R PIVIROTTO RETIRED CHAIRMAN OF ASSOCIATED DRY GOODS CORP 9301280075 930128 BUSINESS BRIEF AVALON CORP HOLDERS TENDER COMMON AND PREFERRED TO COMPANY AVALON CORP SAID THAT 1676604 OF ITS COMMON AND PREFERRED SHARES HAVE BEEN TENDERED IN ITS 375ASHARE OFFER TO PURCHASE ALL OF ITS COMMON AND PREFERRED STOCK NOT ALREADY OWNED BY DUNDEE BANCORP INC AND ITS AFFILIATES AVALON IS A TORONTO HOLDING COMPANY THAT HOLDS A 46 STAKE IN ZEMEX INC A NEW YORK INDUSTRIAL MINERALS CONCERN DUNDEE ALSO BASED IN TORONTO IS A HOLDING COMPANY DUNDEE CURRENTLY HOLDS 10476278 COMMON AND PREFERRED SHARES OF AVALON THE OFFER BY AVALON TO REPURCHASE AND THEN CANCEL ALL OTHER COMMON AND PREFERRED SHARES WILL LEAVE DUNDEE HOLDING 965 OF AVALON'S COMMON STOCK AND 948 OF ITS PREFERRED STOCK ON COMPLETION OF THE TRANSACTION AVALON SAID IT PLANS TO MERGE WITH AN AFFILIATE OF DUNDEE THE REMAINING MINORITY SHAREHOLDERS WHO DIDN'T TENDER THEIR SHARES WILL BE BOUGHT OUT AND RECEIVE THE SAME 375 FOR THEIR HOLDINGS THE NEW YORK STOCK EXCHANGE HAS SUSPENDED TRADING IN AVALON SINCE THE VALUE OF STOCK STILL HELD BY MINORITY HOLDERS IS TOO SMALL TO MEET ITS REQUIREMENTS AN AVALON SPOKESMAN SAID 9301280074 930128 BUSINESS BRIEF APPLIED BIOSCIENCE INTERNATIONAL INC RESEARCH FIRM TO POST LOSS FOR 4TH PERIOD SEES GROWTH APPLIED BIOSCIENCE INTERNATIONAL INC EXPECTS TO RETURN TO EARNINGS GROWTH IN 1993 AFTER A SERIES OF UNUSUAL EVENTS THAT CUT NET INCOME IN 1992 SAID GROVER C WRENN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR WRENN SAID THE CHEMICAL AND DRUG RESEARCH CONCERN EXPECTS TO REPORT A NET LOSS OF ONE CENT A SHARE FOR THE FOURTH QUARTER MAKING NET FOR THE YEAR 26 CENTS A SHARE THAT WOULD COMPARE WITH NET OF 15 CENTS A SHARE IN THE YEAREARLIER QUARTER AND A PROFIT OF 148 MILLION OR 51 CENTS A SHARE IN 1991 OPERATING PROFIT EXCLUDING UNUSUAL CHARGES RELATED TO MERGERS AND RESTRUCTURING WAS EIGHT CENTS A SHARE IN THE QUARTER AND 53 CENTS A SHARE FOR THE YEAR MR WRENN SAID IN 1993 NET WILL RISE TO 60 CENTS TO 65 CENTS A SHARE HE SAID BECAUSE OF REVENUE GROWTH IMPROVED EFFICIENCY FROM RESTRUCTURING AND THE ABSENCE OF UNUSUAL CHARGES APPLIED BIOSCIENCE IS MOVING ITS CORPORATE OFFICE TO ARLINGTON VA FROM EAST MILLSTONE NJ 9301280073 930128 BUSINESS BRIEF INGERSOLLRAND CO COMPANY REPORTS 40 DROP IN NET FOR FOURTH QUARTER INGERSOLLRAND CO WOODCLIFF LAKE NJ SAID IT HAD A 40 DECLINE IN FOURTHQUARTER NET INCOME BECAUSE OF CHARGES FROM RESTRUCTURING A JOINT VENTURE AND ACCOUNTING CHANGES THE COMPANY WHICH MAKES INDUSTRIAL PRODUCTS AND EQUIPMENT SAID NET FELL TO 324 MILLION OR 31 CENTS A SHARE FROM 547 MILLION OR 53 CENTS A SHARE A YEAR EARLIER SALES ROSE 16 TO 109 BILLION WITHOUT THE CHARGES FOURTHQUARTER NET WOULD HAVE BEEN 648 MILLION OR 62 CENTS A SHARE THE CHARGES INCLUDED 257 MILLION OR 25 CENTS A SHARE TO RESTRUCTURE A PUMP JOINT VENTURE WITH DRESSER INDUSTRIES INC AND 69 MILLION OR SIX CENTS A SHARE FOR AN ACCOUNTING CHANGE FOR RETIREE BENEFIT COSTS AT THE COMPANY AND ANOTHER JOINT VENTURE FOR THE YEAR THE COMPANY HAD A NET LOSS OF 2344 MILLION OR 225 A SHARE COMPARED WITH PROFIT OF 1506 MILLION OR 145 A SHARE ACCOUNTING CHARGES FOR ACCUMULATED RETIREMENTBENEFIT COSTS AND DEFERRED TAXES FROM PREVIOUS YEARS RETROACTIVE TO JAN 1 1992 TOTALED 350 MILLION OR 336 A SHARE AFTER TAXES 9301280072 930128 MARKETING BRIEF VIACOM INC MTV NETWORKS TO LAUNCH NEW LATIN AMERICA PROGRAM VIACOM INC'S MTV NETWORKS UNIT WILL LAUNCH A SPANISHLANGUAGE VERSION OF THE CABLE MUSIC CHANNEL IN LATIN AMERICA AND THE US BY NEXT OCTOBER MTV LATIN AMERICA WILL BE MTV'S SIXTH GLOBAL NETWORK ADDING TO THE 210 MILLION HOUSEHOLDS IN MORE THAN 70 COUNTRIES THAT MTV NOW REACHES THROUGH AFFILIATES AND PARTNERSHIPS THE NEW ADSUPPPORTED NETWORK TO BE BASED IN MIAMI WILL TARGET VIEWERS AGES 12 TO 34 IN MEXICO THE CARIBBEAN CENTRAL AMERICA AND SOUTH AMERICA THE NETWORK ALSO WILL SELL TO CABLE SYSTEMS IN THE US WITH LARGE SPANISHSPEAKING POPULATIONS SUCH AS MIAMI LOS ANGELES AND NEW YORK CURRENTLY MTV SELLS MTV INTERNACIONAL A ONEHOUR SYNDICATED SPANISHLANGUAGE PROGRAM WITH INTERNATIONAL AND LATIN MUSIC TO LATIN AMERICAN BROADCASTERS AND TO TELEMUNDO IN THE US 9301280071 930128 USAIR AMERICA WEST REPORT LOSSES IN PERIOD BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL USAIR GROUP INC THE PARENT OF USAIR REPORTED A FOURTHQUARTER LOSS ANNOUNCED PLANS TO CUT CAPITAL EXPENSES AND ELECTED INVESTOR WARREN BUFFETT TO ITS BOARD MEANWHILE AMERICA WEST AIRLINES POSTED A NARROWED FOURTHQUARTER LOSS OF 176 MILLION OR 75 CENTS A SHARE USAIR BASED IN ARLINGTON VA SAID THAT ITS FOURTHQUARTER LOSS AFTER EXTRAORDINARY ITEMS WAS 254 MILLION OR 566 A SHARE IN THE YEAREARLIER PERIOD USAIR HAD NET INCOME OF 16 MILLION BUT A PERSHARE LOSS OF 24 CENTS AFTER PREFERRED DIVIDENDS REVENUE WAS 163 BILLION DOWN 2 FROM 167 BILLION USAIR SAID IT RECORDED 1415 MILLION IN CHARGES FOR THE QUARTER RELATED TO THE GROUNDING AND DISPOSAL OF AIRCRAFT THERE WAS ALSO A 26 MILLION CHARGE FOR ACCOUNTING CHANGES IN A STATEMENT USAIR GROUP CHAIRMAN SETH SCHOFIELD SAID HE WAS ENCOURAGED THAT THE COMPANY'S CONTINUING COSTCUTTING MEASURES WOULD IMPROVE FUTURE RESULTS HOWEVER HE CAUTIONED THAT HE REMAINS CONCERNED ABOUT THE CONTINUING PROPENSITY OF THE INDUSTRY TO OFFER TOO MUCH CAPACITY IN THE FACE OF A WEAK DEMAND THE COMPANY'S MAIN UNIT USAIR SAID IT HAS A TENTATIVE PACT WITH BOEING CO THAT WILL ALLOW USAIR TO CUT CAPITAL EXPENSES BY ABOUT 835 MILLION OVER THE NEXT THREE YEARS USAIR SAID THE ACCORD WITH BOEING'S COMMERCIAL AIRPLANE UNIT CALLS FOR USAIR TO REVISE ITS SCHEDULE FOR ACCEPTING DELIVERY OF AIRCRAFT UNDER THE PLAN USAIR WILL ACCEPT ACCELERATED DELIVERY OF 15 757 JETS AND TAKE OPTIONS ON 15 MORE AT THE SAME TIME USAIR WILL BE RELIEVED OF ITS OBLIGATION TO PURCHASE 20 737 JETS PLUS BE ALLOWED TO DELAY THE DELIVERY OF 40 MORE IN ADDITION TO REDUCING CAPITAL REQUIREMENTS THE MOVE WILL KEEP USAIR'S CAPACITY GROWTH OVER THE NEXT FEW YEARS AT LEVELS MORE CONSISTENT WITH OUR FORECASTS OF ACTUAL MARKET DEMAND MR SCHOFIELD SAID IN ANOTHER MOVE THE COMPANY ELECTED MR BUFFETT AND CHARLES T MUNGER TO FILL BOARD POSTS BEING VACATED BY THE RETIREMENT OF INCUMBENTS GEN DAVID C JONES AND MERLE E GILLIAND MR BUFFETT AND MR MUNGER ARE CHAIRMAN AND VICE CHAIRMAN RESPECTIVELY OF BERKSHIRE HATHAWAY INC WHICH IN 1989 PURCHASED 358 MILLION OF 925 SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK ISSUED BY USAIR GROUP AMERICA WEST WHICH HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYCOURT PROTECTION SINCE JUNE 1991 NARROWED ITS FOURTHQUARTER DEFICIT FROM 56 MILLION OR 243 A SHARE IN THE YEAR EARLIER PERIOD REVENUE FELL TO 3019 MILLION FROM 3237 MILLION THE PHOENIX ARIZ CARRIER ATTRIBUTED THE CHANGE TO THE STEPS IT HAS TAKEN TO STREAMLINE ITS OPERATIONS WHICH INCLUDE REDUCING ITS ROUTE SYSTEM AND WITHDRAWING FROM UNPROFITABLE MARKETS IN FACT ITS OPERATING COSTS PER AVAILABLE SEAT MILE DECLINED 57 AND AMERICA WEST'S YIELD OR THE AMOUNT OF MONEY GENERATED BY EACH PASSENGER INCREASED NEARLY 1 WILLIAM A FRANKE AMERICA WEST'S CHAIRMAN SAID THE COMPANY HAD A PROFIT FROM OPERATIONS IN BOTH NOVEMBER AND DECEMBER USAIR SHARES FELL 375 CENTS APIECE TO 1450 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE AMERICA WEST SHARES FELL 3125 CENTS APIECE TO 375 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9301280070 930128 BUSINESS BRIEF DUN & BRADSTREET CORP COMPANY POSTS 15 INCREASE IN PROFIT FOR FOURTH QUARTER DUN & BRADSTREET CORP SAID FOURTHQUARTER PROFIT ROSE 15 BUT WARNED THAT FIRSTQUARTER RESULTS COULD BE AFFECTED BY WEAK OVERSEAS ECONOMIC CONDITIONS AND SOFTNESS IN ITS TELEPHONEDIRECTORY BUSINESS THE NEW YORKBASED INFORMATION SERVICES COMPANY SAID NET INCOME FOR THE QUARTER ROSE TO 1765 MILLION OR 99 CENTS A SHARE FROM 1537 MILLION OR 86 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 24 TO 129 BILLION WHILE REVENUE FROM CONTINUING BUSINESS ROSE ABOUT 6 HELPED BY A RELATIVELY WEAK DOLLAR THE COMPANY DOESN'T DISCUSS PROFIT OF ITS VARIOUS SEGMENTS BUT IT SAID REVENUE FOR DIRECTORY INFORMATION SERVICES FELL 17 TO 1317 MILLION REVENUE FOR MARKETING INFORMATION SERVICES THE COMPANY'S BIGGEST UNIT ROSE 14 TO 5236 MILLION D&B HAS DROPPED FINANCIAL INFORMATION SERVICES AS A BUSINESS SEGMENT AND HAS MOVED ITS MOODY'S INVESTORS SERVICE INC AND INTERACTIVE DATA RESULTS TO ITS RISK MANAGEMENT AND BUSINESS MARKETING INFORMATION SERVICES SEGMENT THAT SEGMENT'S REVENUE ROSE 7 TO 397 MILLION 9301280069 930128 MARKETING BRIEF HEARST CORP PUBLICATION OF TEXAS PAPER CEASES AS NO BUYER IS FOUND HEARST CORP SAID IT STOPPED PUBLISHING THE SAN ANTONIO TEXAS LIGHT BECAUSE IT WAS UNABLE TO FIND A QUALIFIED BUYER AFTER AN EXTENSIVE SEARCH AT THE SAME TIME HEARST A LARGE CLOSELY HELD PUBLISHER WITH MAJOR STAKES IN BOOKS MAGAZINES AND NEWSPAPERS AS WELL AS BROADCASTING ASSUMES OWNERSHIP TODAY OF THE SAN ANTONIO EXPRESSNEWS A DAILY AND SUNDAY NEWSPAPER AS REPORTED THE EXPRESSNEWS IS BEING ACQUIRED FROM NEWS CORP FOR 185 MILLION OF THE ACQUISITION PRICE 125 MILLION IS CASH AND 60 MILLION IS FOR NEW OFFSET PRESSES AND A NEW FACILITY IN WHICH THE PRESSES WILL BE HOUSED ALL EXPRESSNEWS EMPLOYEES WILL BE OFFERED CONTINUED EMPLOYMENT AT THE PAPER AND HEARST SAID A NUMBER OF JOB OPENINGS AT THE EXPRESSNEWS AND OTHER HEARST NEWSPAPERS WILL BE AVAILABLE TO EMPLOYEES OF THE SAN ANTONIO LIGHT 9301280068 930128 BLUE CROSS OF CALIFORNIA SELLS STAKE IN WELLPOINT HEALTH FOR 476 MILLION BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL BLUE CROSS OF CALIFORNIA SOLD A 175 STAKE IN ITS MANAGEDCARE UNIT WELLPOINT HEALTH NETWORKS INC IN A 476 MILLION INITIAL PUBLIC OFFERING THE STOCK SALE REPRESENTS AN UNUSUAL FORAY INTO THE STOCK MARKET BY A BLUE CROSSAFFILIATED ENTITY IT ALSO UNDERSCORES GROWING INVESTOR ENTHUSIASM FOR MANAGEDCARE COMPANIES WELLPOINT ORIGINALLY PLANNED TO SELL 15 MILLION SHARES AT A PRICE BETWEEN 22 AND 24 A SHARE BECAUSE OF BRISK INVESTOR DEMAND UNDERWRITERS LED BY MERRILL LYNCH & CO EXPANDED THE OFFERING TO 17 MILLION SHARES PRICED AT 28 APIECE THE COMPANY IS IN A GOOD INDUSTRY AND IT LOOKS LIKE IT'S HAD TREMENDOUS MOMENTUM IN EARNINGS SO FAR SAID LOIS FREEDMAN AN ANALYST AT PUTNAM COS A BOSTON MUTUALFUND GROUP ALTHOUGH MS FREEDMAN WOULDN'T SAY WHETHER PUTNAM WAS AMONG THE BUYERS SHE TERMED WELLPOINT POTENTIALLY ATTRACTIVE BASED IN WOODLAND HILLS CALIF WELLPOINT WAS SET UP BY BLUE CROSS OF CALIFORNIA IN 1986 WITH A MANDATE TO FOCUS ON MANAGED CARE WELLPOINT CURRENTLY OPERATES A HEALTHMAINTENANCE ORGANIZATION WITH 423000 MEMBERS A PREFERREDPROVIDER NETWORK WITH 15 MILLION MEMBERS AND A VARIETY OF SPECIAL HEALTH PLANS COVERING PHARMACY DENTAL AND MENTALHEALTH SERVICES BY PUTTING THESE FASTGROWING BUSINESSES UNDER THE WELLPOINT BANNER AND BY KEEPING LESSGLAMOROUS CONVENTIONAL HEALTH INSURANCE OPERATIONS IN THE PARENT COMPANY BLUE CROSS OF CALIFORNIA HAS MANAGED TO CREATE A SUBSIDIARY WITH A BREAKNECK EARNINGS RECORD IN THE FIRST NINE MONTHS OF 1992 WELLPOINT EARNED 1428 MILLION OR 150 A SHARE ON REVENUE OF 17 BILLION THAT REPRESENTED A 38 JUMP IN EARNINGS AND A 20 RISE IN REVENUE FROM A YEAR EARLIER THIS SORT OF GROWTH IS HIGHLY UNUSUAL FOR A BLUE CROSS COMPANY NEARLY ALL OF THE 73 BLUE CROSS AND BLUE SHIELD CONCERNS IN THE US ARE NONPROFIT CORPORATIONS THEIR MANDATE UNDER STATE CHARTER HAS GENERALLY BEEN TO PROVIDE THE WIDEST POSSIBLE SHARE OF THE POPULATION WITH A MEANS OF COVERING THEIR HOSPITAL AND DOCTOR BILLS EVEN IF THAT MEANS TAKING ON HIGHRISK SUBSCRIBERS SHUNNED BY COMMERCIAL INSURERS ANALYSTS SAID IT'S DOUBTFUL THAT MANY OTHER BLUE CROSS COMPANIES CAN FOLLOW BLUE CROSS OF CALIFORNIA'S EXAMPLE SOME BLUE CROSS GROUPS PARTICULARLY ON THE EAST COAST ARE IN SEVERE FINANCIAL DIFFICULTY THEY WOULD BE HARDPRESSED TO CREATE A SUBSIDIARY THAT WOULD APPEAL TO INVESTORS OTHER BLUE CROSS ENTITIES DON'T HAVE A PRESENCE IN THE CURRENTLY POPULAR HMO BUSINESS AND SOME SECURITIES ANALYSTS VOICED CONCERN THAT WELLPOINT'S RAPID GROWTH MIGHT SLOW DOWN THE CALIFORNIA HMO MARKET HAS BECOME INTENSELY COMPETITIVE AND PRICE INCREASES WHICH AVERAGED AS MUCH AS 17 A YEAR IN THE LATE 1980S ARE RUNNING AS LOW AS 7 THIS YEAR EVERYONE HAS BEEN PRICING PRETTY AGGRESSIVELY SAID JERRY FLEMING A HEALTHPLAN MANAGER FOR KAISER PERMANENTE CALIFORNIA'S LARGEST HMO THERE ARE A LARGE NUMBER OF PLAYERS TRYING TO ACHIEVE MARKET SHARE WELLPOINT IN ITS OFFERING PROSPECTUS SAID IT CAN'T PROVIDE ANY ASSURANCE THAT PREMIUM INCREASES WILL EQUAL OR EXCEED INCREASING HEALTH CARE COSTS EVEN SO THE COMPANY SAID IT WANTS TO USE PROCEEDS FROM THE STOCK OFFERING TO SUPPORT FUTURE GROWTH BOTH INTERNALLY AND THROUGH ACQUISITIONS 9301280067 930128 BUSINESS BRIEF SCHLUMBERGER LTD OILFIELD SERVICES CONCERN SAYS 4THPERIOD PROFIT FELL SCHLUMBERGER LTD SAID FOURTHQUARTER NET INCOME TUMBLED 50 REFLECTING A YEAREARLIER EXTRAORDINARY GAIN AND WEAK OILFIELD MARKETS THE NEW YORK OILFIELD SERVICES MEASUREMENT AND SYSTEMS COMPANY SAID NET FELL TO 1541 MILLION OR 64 CENTS A SHARE FROM 3057 MILLION OR 128 A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED A GAIN FROM THE SALE OF AN INVESTMENT OF 131 MILLION REVENUE ROSE TO 163 BILLION FROM 161 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SCHLUMBERGER'S SHARES PLUNGED 275 TO 57375 IN THE YEAR NET DROPPED 19 TO 6616 MILLION OR 275 A SHARE FROM 8157 MILLION OR 342 A SHARE EARNINGS IN 1991 INCLUDED A 177 MILLION GAIN FROM THE SALE OF AN INVESTMENT AND A 25 MILLION CHARGE FOR RESTRUCTURING THE COMPANY'S NORTH AMERICAN OILFIELD OPERATIONS REVENUE ROSE 3 TO 633 BILLION 9301280066 930128 WHAT'S NEWS BUSINESS AND FINANCE CLINTON AIDES ARE CONSIDERING PROPOSALS TO LIMIT COSTOFLIVING INCREASES FOR SOCIAL SECURITY RECIPIENTS AND FOR RETIRED GOVERNMENT WORKERS TO HELP REDUCE THE FEDERAL DEFICIT SUCH A MOVE ONE OF SEVERAL MONEYSAVING OPTIONS BEING CONSIDERED COULD BE THE POLITICALLY EASIEST WAY TO CUT SOCIAL SECURITY OUTLAYS WESTINGHOUSE CHAIRMAN PAUL LEGO RESIGNED BECOMING THE LATEST IN A SERIES OF CORPORATE CHIEFS TO QUIT IN THE FACE OF FINANCIAL TROUBLES AND PRESSURE FROM DIRECTORS AND SHAREHOLDERS A COMMITTEE OF OUTSIDE DIRECTORS WILL LEAD THE SEARCH FOR A SUCCESSOR STEEP TARIFFS ON STEEL FROM 19 COUNTRIES WERE IMPOSED BY THE US IN A VICTORY FOR DOMESTIC STEELMAKERS WHICH ACCUSED FOREIGN RIVALS OF DUMPING THE EC AND OTHERS ASSAILED THE MOVE WHICH WAS THE FIRST SIGNIFICANT US TRADE ACTION SINCE CLINTON TOOK OFFICE NASDAQ STOCKS SANK 13 AS INVESTORS TOOK PROFITS FROM THE OVERTHECOUNTER MARKET'S 22 RISE SINCE OCTOBER LARGE STOCKS FELL LESS SHARPLY THE DOW JONES INDUSTRIALS LOST 756 POINTS BOND PRICES AND THE DOLLAR GAINED THE FDIC IS SELLING THE REMNANTS OF FIRST CITY BANCORP OF TEXAS TO A CHEMICAL BANKING UNIT AND OTHER BUYERS THE UNEXPECTEDLY SUCCESSFUL SALE MEANS FIRST CITY'S CLOSING WON'T USE UP ANY DEPOSIT INSURANCE MONEY FED CHAIRMAN GREENSPAN SAID THE NATION'S ECONOMY IS GAINING STRENGTH MUCH OF IT COMING FROM CONSUMERS HE AVOIDED PROMISING THAT THE FED WILL CUT INTEREST RATES IF CLINTON AND CONGRESS ENACT A DEFICITREDUCTION PLAN THE IBM DIRECTOR WHO IS LEADING THE SEARCH FOR A NEW CEO SAID HIS MISSION INCLUDES COMING UP WITH A BETTER CORPORATE STRUCTURE FOR THE COMPANY MERCEDESBENZ PLANS TO BROADEN ITS PRODUCT LINE WITH A MINIVANLIKE VEHICLE A SMALL CAR FOR CITY DRIVING AND A FOURWHEELDRIVE LEISURE CAR IN A BID TO RESPOND TO A CHANGED CAR MARKET THREE AMERICAN EXPRESS OUTSIDE DIRECTORS WHO PUSHED FOR THE OUSTER OF CHAIRMAN JAMES ROBINSON III ARE STEPPING DOWN AFTER THE BOARD'S DECISION TO KEEP HIM IN HIS POST FORMER GENERAL MOTORS CHAIRMAN ROGER SMITH IS STEPPING DOWN AS A GM DIRECTOR IN APRIL AS PART OF A PLAN TO OVERHAUL THE AUTO MAKER'S BOARD SALOMON AND LAZARD FRERES WERE LEFT WITH MILLIONS OF DOLLARS IN PAPER LOSSES ON UNSOLD TIME WARNER NOTES WHEN SALOMON YIELDING TO PRESSURE FROM THE MEDIA GIANT LET IT PROCEED WITH A SEPARATE 1 BILLION BOND ISSUE BLUE CROSS OF CALIFORNIA SOLD TO THE PUBLIC FOR 476 MILLION A 175 STAKE IN A UNIT THAT OPERATES AN HMO AND OTHER MANAGED CARE HEALTH PLANS BOEING AGREED WITH THE FOUR OWNERS OF EUROPEAN JETMAKING RIVAL AIRBUS TO JOINTLY STUDY THE DEVELOPMENT OF A JET THAT COULD CARRY UP TO 800 PASSENGERS DU PONT POSTED A 230 MILLION FOURTHQUARTER LOSS AND SAID IT PLANS TO SLASH THE WORK FORCE AT ITS CONOCO OIL DIVISION BY 2000 JOBS OR 10 BONDS LEHMAN BROTHERS TREASURY INDEX 480434 UP 425 COMMODITIES OIL 1966 A BARREL UP TWO CENTS DOW JONES FUTURES INDEX 12108 UP 010 SPOT INDEX 12117 OFF 051 DOLLAR 12410 YEN UP 054 15865 MARKS UP 00101 9301280065 930128 BUSINESS BRIEF COMPUWARE CORP SOFTWARE FIRM COMFORTABLE' WITH ANALYSTS' ESTIMATES COMPUWARE CORP IS COMFORTABLE WITH ANALYSTS' ESTIMATES IT WILL EARN ABOUT 110 A SHARE FOR THE YEAR ENDING MARCH 31 W JAMES PROWSE SENIOR VICE PRESIDENT SAID IN FISCAL 1992 THE FARMINGTON HILLS MICH COMPUTER SOFTWARE CONCERN HAD A LOSS OF 238 MILLION OR 79 CENTS A SHARE ON REVENUE OF 175 MILLION THE YEAREARLIER RESULTS INCLUDED A PRETAX CHARGE OF 526 MILLION RELATED TO THE ACQUISITION OF XA SYSTEMS CORP THIS WEEK COMPUWARE REPORTED NINEMONTH EARNINGS OF 257 MILLION OR 76 CENTS A SHARE ON REVENUE OF 166 MILLION THE COMPANY ALSO SAID IT IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT FISCAL 1993 REVENUE WILL BE 225 MILLION TO 230 MILLION WE BELIEVE OUR REVENUE WILL GROW 30 TO 40 A YEAR MR PROWSE SAID HE SAID THE RECESSION HASN'T HURT THE COMPANY'S NORTH AMERICAN REVENUE BUT THAT THE WEAK ECONOMY IN EUROPE HAS LED TO A SLIGHT SLOWDOWN IN REVENUE THERE 9301280064 930128 INTERNATIONAL PANEL CALLS FOR SUBSIDIES TO RESCUE UK COAL MINES LONDON A BIPARTISAN PARLIAMENTARY COMMITTEE PUT PRIME MINISTER JOHN MAJOR ON THE SPOT BY CALLING FOR SUBSIDIES OF ABOUT 300 MILLION 4614 MILLION TO SAVE MANY OF THE 31 COAL MINES THE GOVERNMENT WANTS TO CLOSE THE GOVERNMENT SPARKED A NATIONWIDE PROTEST IN OCTOBER WHEN IT ANNOUNCED SWEEPING PIT CLOSURES AND THE AXING OF 30000 COALMINING JOBS STATEOWNED BRITISH COAL WHICH ALREADY RECEIVES SUBSIDIES OF ABOUT 1 BILLION A YEAR WAS TO CUT ITS PAYROLL TO 18000 MINERS IN JUST 19 MINES BY APRIL BUT IN THE ENSUING POLITICAL STORM MR MAJOR WAS FORCED TO SUSPEND THE PLAN HE HAS PROMISED TO TAKE THE COMMITTEE'S FINDINGS INTO CONSIDERATION WHEN HIS CABINET REVIEWS THE ISSUE IN FEBRUARY THE COMMITTEE INCLUDES REPRESENTATIVES OF MR MAJOR'S CONSERVATIVE PARTY AND THE OPPOSITION LABOR PARTY RAISING THE PROSPECT OF AN EMBARRASSING DEFEAT FOR THE GOVERNMENT IF IT PERSISTS WITH ITS MINECLOSURE PLAN THE COMMITTEE SAYS ITS PROPOSED ADDITIONAL SUBSIDIES COULD VASTLY EXPAND COAL SALES AND KEEP ABOUT 16 OF THE THREATENED PITS OPERATING ACCORDING TO SOURCES FAMILIAR WITH ITS FINDINGS BUT INDUSTRY MINISTER TIM EGGAR SPEAKING ON BBC TELEVISION SAID ANY MEASURES TO EXPAND THE MARKET FOR COAL WOULD CREATE PROBLEMS ELSEWHERE THERE MAY BE COSTS IN TERMS OF LOSS OF NUCLEAR JOBS AND LOSS OF JOBS IN THE GAS INDUSTRY HE WARNED 9301280063 930128 ABREAST OF THE MARKET INDUSTRIALS DROP 756 TO 329139 HURT BY PLUNGE IN SMALL STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PLUNGE IN OVERTHECOUNTER STOCK PRICES DRAGGED THE OVERALL MARKET LOWER WITH TECHNOLOGY STOCKS LEADING THE RETREAT PEOPLE GET REAL CAUTIOUS WHEN THE REAL STRENGTH IN THE MARKET TURNS AROUND AND THE OVERTHECOUNTER MARKET HAS BEEN THE REAL STRENGTH SAID EDWARD LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY COMPUTERGUIDED SELL PROGRAMS DROVE BIG BOARD STOCKS MORE THAN 20 POINTS LOWER IN THE AFTERNOON BUT THE MARKET REBOUNDED IN THE LAST HALF HOUR THANKS TO FIRMER BOND PRICES AND SIGNS THAT THE HEAVY SELLING IN THE OVERTHECOUNTER MARKET WAS ORDERLY VOLUME WAS HEAVY WITH 276880000 SHARES CHANGING HANDS DOWN FROM 311410000 SHARES TUESDAY ON THE BIG BOARD DECLINING ISSUES OUTSTRIPPED ADVANCERS BY 1160 TO 719 LON GORMAN COMANAGER OF EQUITY TRADING AT FIRST BOSTON VIEWED YESTERDAY'S PULLBACK AS HEALTHY IN ORDER TO MOVE TWO STEPS FORWARD THE MARKET HAS TO TAKE ONE STEP BACKWARD SOMETIMES MR GORMAN SAID HE SAID YESTERDAY'S DROP IN THE INDUSTRIAL AVERAGE REFLECTED DECLINES IN A HANDFUL OF STOCKS AMERICAN EXPRESS LOST 7/8 TO 23 DECLINING FOR THE THIRD STRAIGHT DAY MINNESOTA MINING & MANUFACTURING FELL 1 1/8 TO 97 1/2 BOEING DROPPED 7/8 TO 34 5/8 AND WALT DISNEY SLIPPED 5/8 TO 45 1/2 BUT THE BIGGEST CASUALTIES OF THE DAY WERE IN TECHNOLOGY STOCKS OUTSIDE OF THE INDUSTRIAL AVERAGE DIGITAL EQUIPMENT TUMBLED 1 7/8 TO 41 7/8 HEWLETTPACKARD LOST 1 7/8 TO 71 5/8 MOTOROLA SKIDDED 1 5/8 TO 57 3/8 AND COMPAQ SHED 1 3/4 TO 54 7/8 OIL SERVICE STOCKS WERE HIT TOO AFTER SOME LACKLUSTER EARNINGS REPORTS SCHLUMBERGER DROPPED 2 3/4 TO 57 3/8 THE COMPANY EARNED 1541 MILLION OR 64 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH 3057 MILLION OR 128 A SHARE A YEAR EARLIER PROFITS IN THE YEARAGO PERIOD WERE BOOSTED BY A GAIN OF 131 MILLION OR 55 CENTS A SHARE FROM THE SALE OF AN INVESTMENT BAKER HUGHES GAVE UP 3/4 POINT TO 19 3/4 THE OIL SERVICE COMPANY'S FISCAL FIRST QUARTER PROFIT NARROWED TO 42 MILLION OR ONE CENT A SHARE FROM 246 MILLION OR 18 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S RESULTS INCLUDED A PRETAX CHARGE OF 175 MILLION DR PEPPER/SEVENUP WAS THE MOST ACTIVELY TRADED STOCK ON THE BIG BOARD REMAINING 3/8 TO 16 7/8 THE BEVERAGE CONCERN SOLD 205 MILLION SHARES TO INVESTORS AT 15 A SHARE IN AN INITIAL PUBLIC OFFERING TUESDAY MCDONALD'S SLIPPED 3/8 TO 47 7/8 THE FASTFOOD CHAIN'S PROFIT GREW TO 2279 MILLION OR 61 CENTS A SHARE IN THE FOURTH QUARTER FROM 2004 MILLION OR 54 CENTS A SHARE A YEAR AGO MANY ANALYSTS WERE EXPECTING SLIGHTLY HIGHER PERSHARE EARNINGS PHILIP MORRIS ADDED 1/4 TO 73 3/4 THE FOOD AND TOBACCO GIANT'S PROFIT BALLOONED TO 12 BILLION 134 A SHARE IN THE FOURTH QUARTER FROM 767 MILLION OR 83 CENTS A YEAR EARLIER LAST YEAR'S RESULTS WERE DRAGGED DOWN BY A 275 MILLION CHARGE UNION CARBIDE EDGED UP 1/4 TO 17 THE CHEMICAL COMPANY REPORTED PROFIT OF 17 MILLION OR 12 CENTS A SHARE FOR THE FOURTH QUARTER AFTER LOSING 63 MILLION OR 49 CENTS A SHARE A YEAR EARLIER BETHLEHEM STEEL CLIMBED 5/8 TO 19 THE COMPANY'S FOURTHQUARTER LOSS NARROWED TO 531 MILLION OR 65 CENTS A SHARE FROM 6381 MILLION OR 847 A SHARE A YEAR AGO THE LATEST YEAR WAS BUOYED BY A 31 MILLION GAIN WHILE THE PRIOR YEAR WAS DRAGGED DOWN BY A 575 MILLION RESTRUCTURING CHARGE MARSHALL INDUSTRIES SLID 3 7/8 TO 35 5/8 THE ELECTRONICPARTS DISTRIBUTOR SAID IT EXPECTS FISCAL THIRDQUARTER PROFIT TO RANGE FROM 50 CENTS A SHARE TO 60 CENTS COMPARED WITH A YEAR AGO WHEN THE COMPANY EARNED 56 CENTS A SHARE ACCORDING TO A SURVEY BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ANALYSTS EXPECTED THE FIRM TO EARN 74 CENTS A SHARE COACHMEN INDUSTRIES ROSE 1 1/2 TO 18 1/4 THE MAKER OF RECREATIONAL VEHICLES REPORTED IT EARNED 19 MILLION OR 26 CENTS A SHARE IN THE FOURTH QUARTER AFTER LOSING 86 MILLION OR 121 A YEAR AGO FIRST USA JUMPED 2 TO 26 1/4 PROFIT MORE THAN DOUBLED IN THE FISCAL SECOND QUARTER TO 88 MILLION OR 33 CENTS A SHARE BROWNINGFERRIS INDUSTRIES GAINED 1 TO 27 7/8 THE WASTE MANAGEMENT COMPANY'S PROFIT SWELLED TO 523 MILLION OR 31 CENTS A SHARE IN THE FISCAL FIRST QUARTER FROM 403 MILLION OR 26 CENTS A SHARE A YEAR AGO MCDONNELL DOUGLAS FELL 2 3/4 TO 60 3/4 THE STOCK WAS PRESSURED BY A REPORT THAT THE AIR FORCE BELIEVING THE DEFENSE CONTRACTOR WAS ON THE VERGE OF BANKRUPTCY IMPROPERLY BOOSTED THE COMPANY'S CASH POSITION IN 1990 PARTLY TO HELP IT OBTAIN PRIVATE FINANCING LATE YESTERDAY WELLPOINT HEALTH NETWORKS SOLD 17 MILLION COMMON SHARES TO INVESTORS AT 28 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE STOCK IS EXPECTED TO START TRADING ON THE BIG BOARD TODAY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 142 TO 41018 THERE WERE 363 DECLINERS AND 220 ADVANCERS 9301280062 930128 BUSINESS BRIEF ARCADIAN CORP OSHA SETS 5 MILLION FINE OVER BLAST AT LOUISIANA PLANT THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION PROPOSED A 5 MILLION FINE AGAINST ARCADIAN CORP A MEMPHIS TENN FERTILIZER MAKER FOR ALLEGED SAFETY AND HEALTH VIOLATIONS THE RECOMMENDATION FOLLOWS AN INVESTIGATION OF AN EXPLOSION LAST SUMMER AT THE COMPANY'S PLANT IN LAKE CHARLES LA THREE WORKERS AND FOUR RESIDENTS WERE INJURED IN THE BLAST THAT OCCURRED WHEN A UREA REACTOR IN THE FACTORY RUPTURED UREA IS A FERTILIZER PRODUCT MADE FROM AMMONIA AND CARBON DIOXIDE THE DEPARTMENT OF LABOR AND OSHA SAID THE ACCIDENT COULD HAVE BEEN PREVENTED IF ARCADIAN HAD FOLLOWED OSHA STANDARDS AND INDUSTRY SAFETY PROCEDURES ARACDIAN CONTINUED TO USE THE FLAWED REACTOR EVEN AFTER A LEAK HAD BEEN DETECTED ACCORDING TO OSHA COMPANY OFFICIALS SAID YESTERDAY THAT THEY WEREN'T AWARE OF THE LEAK BEFORE THE EXPLOSION DOUG CAMPBELL ARCADIAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WOULD CONTEST THE PENALTIES ARCADIAN IS GENERAL PARTNER OF ARCADIAN PARTNERS LP 9301280061 930128 HEARD ON THE STREET REVCO APPEALS TO SOME INVESTORS AS IT SHOWS FINANCIAL STRENGTH IN WAKE OF REORGANIZATION BY CRAIG TORRES AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK EARNINGS ARE TURNING UP AT REVCO SEVEN MONTHS OUT OF BANKRUPTCY COURT THE TWINSBURG OHIO CHAIN OF 1154 DRUGSTORES HAS TAKEN STEPS TO SLASH INTEREST EXPENSE AND IS SHOWING FINANCIAL MUSCLE MAKING THE STOCK LOOK TO SOME INVESTORS LIKE AN ALLURING BET FOR NEARTERM GAINS THERE'S NOTHING TERRIBLY EXCITING GOING ON IN REVCO'S BASIC BUSINESS SELLING PRESCRIPTIONS AND OVERTHECOUNTER HEALTH AIDS AND COSMETICS SAMESTORE SALES WERE UP 93 IN THE FISCAL YEAR THROUGH MAY 30 AND THEY ROSE AT A SLOWER 56 PACE FROM THERE THROUGH MIDNOVEMBER YET ALAN B SNYDER THE VALUEMINDED HEAD OF SNYDER CAPITAL MANAGEMENT IN SAN FRANCISCO THINKS REVCO SHARES CAN MORE THAN DOUBLE FROM YESTERDAY'S PRICE OF 9 5/8 WHY REVCO EMERGED FROM BANKRUPTCY COURT IN JUNE IT FINALLY FINISHED REMODELING ITS BALANCE SHEET THIS MONTH THERE HAS BEEN A TREMENDOUS CHANGE AT REVCO SAYS MR SNYDER THEY DIDN'T HAVE MUCH FLEXIBILITY NINE MONTHS AGO NOW THEY CAN DO ANYTHING THEY WANT TO GROW THE COMPANY AND THAT COMPANY IS IN BETTER SHAPE THAN IT MAY SEEM TO BE TRACKING MONEY FLOW AROUND A BALANCE SHEET IN A REORGANIZED COMPANY CAN BE A DAUNTING TASK BUT A LITTLE SCRATCHPAD EFFORT SHOWS WHY BARGAIN HUNTERS LIKE REVCO LAST WEEK REVCO ANNOUNCED THE FINAL STEPS OF A RESTRUCTURING THAT EXTINGUISHED HIGHCOST DEBT WITH COUPONS OF 11 TO 11625 REPLACING IT WITH 9125 SEVENYEAR NOTES LOWINTEREST BANK DEBT AND NEW STOCK MR SNYDER FIGURES REVCO WILL SAVE AT LEAST 20 MILLION IN ANNUAL INTEREST EXPENSE THIS HE FIGURES COULD PAVE THE WAY FOR AFTERTAX PROFIT OF 34 MILLION OR ABOUT 68 CENTS A SHARE IN THE FISCAL YEAR ENDING IN MAY 1994 NOT BAD IF IT HAPPENS FOR THE FISCAL YEAR ENDING THIS MAY ANALYSTS EXPECT EARNINGS OF ABOUT 10 MILLION OR 25 CENTS A SHARE ON FEWER SHARES OUTSTANDING IN OTHER WORDS THE COMPANY COULD FINISH THIS FISCAL YEAR IN THE BLACK AND THAT'S AFTER A CONTINUING ANNUAL CHARGE OF 172 MILLION OR 34 CENTS A SHARE RELATED TO GOODWILL THE GOODWILL CHARGE IS A PIECE OF ACCOUNTING FALLOUT FROM REVCO'S EMERGENCE FROM BANKRUPTCY PROCEEDINGS IT REFLECTS THE GAP BETWEEN PREVIOUSLY STATED ASSET VALUES AND REVCO'S HIGHER VALUE AS A GOING CONCERN WHEN IT EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS SUCH GAPS MUST BE ACCOUNTED FOR THROUGH CHARGES AGAINST EARNINGS OVER A PERIOD OF YEARS BUT THIS PROCESS DOESN'T TAKE ANY MONEY OUT OF A COMPANY'S POCKET IT'S A MOVEMENT OF SUMS AROUND THE BALANCE SHEET NOT AN OPERATING LOSS THAT'S WHY SOME INVESTORS ADD THE CHARGE BACK TO EARNINGS DO THAT AND REVCO STARTS TO LOOK LIKE A NORMAL COMPANY WITH THE 34CENTASHARE CHARGE ADDED BACK MR SNYDER NOTES HIS ESTIMATE OF REVCO'S PROFIT WOULD BE 102 A SHARE FOR FISCAL 1994 HE THINKS THE STOCK'S A DEAL AT 9 1/2 TIMES THAT 1994 ESTIMATE DRUGSTORE STOCKS TYPICALLY TRADE AT AROUND 17 TIMES EARNINGS MR SNYDER SAYS SO HE EXPECTS THE STOCK TO RISE TO THE HIGH TEENS THERE MAY BE MORE FINANCIAL MANEUVERS TO KICK UP PERSHARE EARNINGS REVCO HAS 20 MILLION IN CASH ON ITS BALANCE SHEET TO PAY DOWN DEBT IF INTEREST COVERAGE IMPROVES BANKS WILL REDUCE INTEREST EXPENSE REVCO SAYS BUT AFTER THE FINANCIAL TACTICS RUN OUT STRONG REVENUE GROWTH WILL HAVE TO SUPPORT EARNINGS GAINS ABOUT 50 OF REVCO'S REVENUE COMES FROM PRESCRIPTIONS 42 OF THAT BUSINESS IS PAID FOR BY HEALTH PLANS AND INSURERS THESE PAYERS ARE GETTING INCREASINGLY TESTY WITH DRUGSTORE CHAINS OVER PRICING AND THERE ARE PLENTY OF COMPETITORS IN REVCO'S WORLD TO KEEP PROFIT MARGINS TIGHT PROFIT PRESSURE IN OVERTHECOUNTER DRUGS AND COSMETICS IS EVEN MORE INTENSE DAVID SCHULTE WHO WITH PARTNER SAM ZELL CONTROLS 1996 OF REVCO STOCK SAYS THE COMPANY CAN IMPROVE MARGINS WHICH ARE ABOUT 4 PRETAX THAT FIGURE IS LOWER THAN WALGREEN'S AND RITE AID'S MARGINS HE SAYS REVCO'S CHIEF FINANCIAL OFFICER GREGORY RAVEN SAYS MANAGEMENT WILL BOOST SALES VOLUME BY AGGRESSIVELY GOING AFTER NEW THIRDPARTY PAYMENT PLANS PASSING ALONG SOME RETAIL PHARMACEUTICAL PRICE INCREASES TO CONSUMERS AND MAKING GOOD USE OF CHECKOUTSTAND SCANNING TECHNOLOGY BULLS EXPECT A GENERAL RISE IN DEMAND FOR PRESCRIPTION DRUGS IN THE US COMPETITORS INCLUDE IMPERSONAL DISCOUNTERS AND DRUGSBYMAIL COMPANIES MANY ANALYSTS BELIEVE PEOPLE WILL STILL PREFER TO TALK WITH A PHARMACIST IN PERSON BUT RETAIL STOCKS GET REALLY HOT WHEN A CHAIN IS EXPANDING STORES AND RAISING MARGINS THROUGH SHEER DOMINATION A LA HOME DEPOT AND WALMART STORES REVCO APPARENTLY HAS THE MANAGERIAL WILL TO EXPAND PRUDENTLY AND SUFFICIENT INVENTORY TECHNOLOGY TO MANAGE THE GROWTH MR SCHULTE SAYS REVCO WILL OPEN NEW STORES IN EXISTING GEOGRAPHIC AREAS AND CONTIGUOUS MARKETS SOMETHING IT COULDN'T DO WHILE IN BANKRUPTCY PROCEEDINGS BECAUSE LANDLORDS WOULDN'T DEAL WITH IT REVCO IS ALSO INTERESTED IN ACQUIRING INDEPENDENT DRUGSTORES OR THEIR PRESCRIPTION LISTS AND PORTIONS OF LARGE CHAINS NOW WE HAVE THE FINANCIAL FLEXIBILITY TO GROW THE BUSINESS IN A ROUTINE WAY THROUGH ADDED STORES AND MARKETS MR SCHULTE SAYS WHEN IT COMES TO THE SEXAPPEAL STUFF ACQUISITIONS WE'VE GOT TO WAIT AND SEE WE DON'T WANT TO DO TO REVCO WHAT GOT DONE BEFORE WILLYNILLY EXPANSION 9301280060 930128 BUSINESS BRIEF KLH ENGINEERING GROUP INC RESTRUCTURING IS EXPECTED TO HURT 1STPERIOD RESULTS KLH ENGINEERING GROUP INC DENVER SAID IT WILL CLOSE TWO UNPROFITABLE UNITS AND CUT 12 OF ITS STAFF MOVES IT EXPECTS WILL PRODUCE A LOSS FROM DISCONTINUED OPERATIONS IN THE FIRST QUARTER THE ENGINEERING CONCERN SAID THE STEPS ARE PART OF A STRATEGY TO STEM OPERATING LOSSES WHICH IT ESTIMATED AT 13 MILLION ON REVENUE OF 3 MILLION IN THE FOURTH QUARTER IT BLAMED THE SMALL SIZE OF ITS OPERATING UNITS IN SIMI VALLEY AND SANTA ROSA CALIF AND A WEAK CALIFORNIA ECONOMY FOR ITS SLUGGISHNESS TO TRIM OVERHEAD AND STREAMLINE OPERATIONS THE COMPANY SAID IT WILL REDUCE STAFF TO 166 FROM 185 WORKERS CUT MANAGEMENT SALARIES INTRODUCE AN INCENTIVE STOCK OPTION PLAN IMPROVE PROCEDURES AND STRENGTHEN ITS MARKETING EFFORT THE PLAN SHOULD SAVE KLH AS MUCH AS 100000 A MONTH KLH SAID IT IS ALSO ENGAGED IN TALKS WITH LENDERS TO RESTRUCTURE ITS DEBT THE COMPANY HAS 3 MILLION OF SHORTTERM DEBT WHICH IT SAID HAMPERED ITS PROFITABILITY AND GROWTH 9301280059 930128 BUSINESS BRIEF FUJITSU LTD COMPUTER FIRM TAKES STEPS TOWARD IBM COMPATIBILITY FUJITSU LTD JAPAN'S LARGEST COMPUTER MAKER HAS TAKEN ITS FIRST TENTATIVE STEPS TOWARD MARKETING PERSONAL COMPUTERS COMPATIBLE WITH THE IBM STANDARD THE MOVE IS SIGNIFICANT BECAUSE JAPAN'S PC MARKET IS DOMINATED BY NEC CORP WHOSE MACHINES AREN'T COMPATIBLE WITH PCS SOLD BY INTERNATIONAL BUSINESS MACHINES CORP AND A RAFT OF CLONE MAKERS UNTIL NOW FUJITSU'S PCS HAVEN'T BEEN COMPATIBLE WITH EITHER STANDARD AND HAVE INSTEAD RUN FUJITSU'S OWN OPERATING SYSTEM THE NEW MACHINES WILL RUN IBMCOMPATIBLE SOFTWARE INCLUDING MICROSOFT CORP'S DOS/V AN OPERATING SYSTEM THAT RUNS BOTH ENGLISHLANGUAGE AND JAPANESELANGUAGE SOFTWARE A FUJITSU SPOKESMAN IN TOKYO PLAYED DOWN THE ANNOUNCEMENT NOTING THAT THE COMPANY IS SELLING THE MACHINES AS WORD PROCESSORS NOT AS PERSONAL COMPUTERS IN JAPAN WORD PROCESSORS NORMALLY INCLUDE A BUILTIN PRINTER AND WORDPROCESSING SOFTWARE AND DON'T HAVE HARDDISK DRIVES OR MUCH MEMORY 9301280057 930128 WE' THE PRESIDENT NEW FIRST LADY SHOWS WASHINGTON SHE TOO IS NOW AT THE HELM POLL FINDS AMERICA DIVIDED ABOUT HER INVOLVEMENT IN MAJOR POLICY DECISIONS NEW LONGER NAME NOT A HIT BY JAMES M PERRY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON MAY BE HAVING TROUBLE HITTING THE GROUND RUNNING BUT THERE ARE NO SUCH FEARS ABOUT HILLARY RODHAM CLINTON NO SOONER HAD SHE BEEN NAMED BY HER HUSBAND TO HEAD A NATIONAL TASK FORCE ON HEALTH CARE THAN SHE WAS WORKING THE PHONES SHE TRACKED DOWN SEN DONALD RIEGLE CHAIRMAN OF A SENATE HEALTHCARE SUBCOMMITTEE AT HIS HOME IN MCLEAN VA WHERE HE WAS WATCHING THE CONCLUSION OF A DETROIT PISTONS BASKETBALL GAME THE PEOPLE SHE CONTACTED ALL DROPPED WHATEVER THEY WERE DOING TO TALK TO A WOMAN WHO GIVES EVERY INDICATION OF BECOMING THE MOST POWERFUL AND PERHAPS THE MOST CONTROVERSIAL FIRST LADY IN AMERICAN HISTORY WHEN HILLARY RODHAM CLINTON CALLS PEOPLE LISTEN SHE INSPIRES RESPECT EVEN FEAR FROM WHAT I HEAR SHE'S GOT BOTH HANDS ON THE THROTTLE SAYS DEMOCRATIC REP DAN ROSTENKOWSKI OF ILLINOIS WHOM SHE HAD CALLED EARLIER SHE STARTS HER WORK IN THE WHITE HOUSE WITH STRONG SUPPORT FROM THE PUBLIC THE LATEST WALL STREET JOURNAL/NBC NEWS POLL SHOWS A POSITIVE RATING OF 57 UP FROM 46 IN DECEMBER ON THE QUESTION OF WHETHER SHE IS OR ISN'T A POSITIVE ROLE MODEL 74 SAY SHE IS ONLY 15 SAY SHE ISN'T BUT ON A KEY QUESTION WHETHER SHE SHOULD OR SHOULD NOT BE INVOLVED IN DEVELOPING MAJOR POLICY DECISIONS RESPONDENTS SPLIT STRAIGHT DOWN THE MIDDLE WITH 47 SAYING SHE SHOULD AND 45 SAYING SHE SHOULDN'T AND ON A CULTURAL AND SYMBOLIC ISSUE WHAT NAME SHE WANTS TO BE CALLED SHE IS BUCKING PUBLIC OPINION RESPONDENTS 62 TO 6 SAY SHE SHOULD STICK TO HILLARY CLINTON INSTEAD OF THE NAME SHE NOW PREFERS HILLARY RODHAM CLINTON WHILE 28 SAY IT DOESN'T MATTER SHE SHOULD USE WHATEVER NAME SHE WANTS AMERICANS HAVE ALWAYS BEEN CURIOUS ABOUT THE WIVES OF THEIR PRESIDENTS THE FAMILY LIVING IN THE WHITE HOUSE IS AS CLOSE AS THIS COUNTRY GETS TO A ROYAL FAMILY LIVING IN A PALACE BUT THERE RARELY IF EVER HAS BEEN ANYTHING APPROACHING THE INTENSITY OF THE NATION'S INTEREST IN THIS FIRST LADY I'M RAHRAHRAH FOR HILLARY SAYS MYRTLE YOMAS A 70YEAROLD RETIREE WHO LIVES OUTSIDE BALTIMORE I'M SO GLAD TO SEE THOSE YOUNG PEOPLE THERE MAYBE THAT'S WHAT WE NEED SOME NEW THOUGHTS VOTERS SEEM TO SENSE THAT MRS CLINTON IS GOING TO BE A DARING HIGHWIRE ACT AND THEY ALREADY ARE HOLDING THEIR COLLECTIVE BREATH AS THE DRAMA BEGINS TO UNFOLD DEMOCRATIC STRATEGISTS PRAY SHE CAN PULL IT OFF WHILE REPUBLICAN OPERATIVES LOOK FOR SIGNS OF HER LOSING HER BALANCE IT HAS EVERY POTENTIAL FOR DISASTER SAYS VINCE BREGLIO A GOP POLLSTER SHE SHATTERS ALL THE PRECEDENTS SHE GOES TO WORK IN A SMALL ROOM AT THE CENTER OF THE SECONDFLOOR WORK SPACE IN THE WEST WING OF THE WHITE HOUSE SURROUNDED NOT BY SOCIAL SECRETARIES BUT BY THE LARGELY ANONYMOUS POLICY EXPERTS WHO WILL LAY OUT THE NEW ADMINISTRATION'S DOMESTIC PROGRAMS SHE WILL BE THE VOICE MOST OF THEM LISTEN TO MOST RESPECTFULLY MOST OF THE TIME THE PREVIOUS OCCUPANT OF THE OFFICE WAS JANET MULLINS WHO IN A TWIST OF FATE IS BEING INVESTIGATED FOR HER ALLEGED ROLE IN A PREELECTION SEARCH OF MR CLINTON'S PASSPORT FILES ON THE QUESTION OF MRS CLINTON AND HER STAFF MOVING INTO LARGER QUARTERS TAKING OVER SPACE NOW USED AS A PRESS ROOM FOR WHITE HOUSE REPORTERS THE RESPONDENTS TO THE JOURNAL/NBC POLL SAY BY A MODEST MARGIN THAT SHE AND HER AIDES SHOULD STAY WHERE THEY ARE IT IS PROBABLY LESS A RINGING ENDORSEMENT OF THE PRESS THAN A FEELING MRS CLINTON SHOULDN'T BE BUILDING A PERSONAL BUREAUCRACY DONNA SHALALA THE NEW SECRETARY OF HEALTH AND HUMAN SERVICES CALLS THE POLITICAL RISK OF PUTTING MRS CLINTON IN SUCH A HIGHVISIBILITY ROLE HUGE BUT MRS CLINTON REPRESENTS A DIFFERENT GENERATIONAL EXPERIENCE SAYS MS SHALALA SHE'S ON THE CUTTING EDGE OF THAT AND IT'S VERY TRICKY BECAUSE SHE'S ON THE BORDERLINE BETWEEN A MORE TRADITIONAL ROLE AND THIS NEW ROLE FOR WOMEN TWENTY YEARS FROM NOW WE WON'T THINK TWICE MRS CLINTON HAS FRIENDS AND OLD ASSOCIATES SCATTERED THROUGH THE UPPER RANKS OF THE ENTIRE FEDERAL BUREAUCRACY WHEN THEY WANT SOMETHING DONE THEY WILL GO THEY ALREADY GO TO MRS CLINTON YOU CAN BE SURE SAYS MS SHALALA THAT IF I AND EVERY OTHER CABINET OFFICER THINK SHE CAN BE HELPFUL ON SOMETHING SPECIFIC LIKE TRYING TO RECRUIT THE BEST PERSON IN THE COUNTRY WE'RE GOING TO CALL HER AND SAY PLEASE HELP US RECRUIT THIS PERSON OLDLINE POLITICIANS LIKE MR ROSTENKOWSKI MAY FEEL UNCOMFORTABLE WITH HER ASSIGNMENT IS IT A GOOD THING HE IS ASKED THAT REMAINS TO BE SEEN HE REPLIES I DON'T KNOW THAT HILLARY WILL HAVE THE SAME AMOUNT OF EXPOSURE AS AN ELECTED OFFICIAL REP PETE STARK A CALIFORNIA DEMOCRAT SAYS HE'S A LITTLE MIFFED PRESIDENT CLINTON HAD LED THE LAWMAKER TO BELIEVE THAT HE THE PRESIDENT WOULD TAKE THE LEAD ON HEALTH CARE HE CHANGED HIS MIND REP STARK SAYS BUT MIFFED OR NOT HE SAYS I'M HAPPY I'LL BE HAPPY TO NEGOTIATE WITH HIS WIFE ANYTIME WHAT IS OFFPUTTING TO TRADITIONAL POLITICIANS AND PERHAPS TO MANY AMERICANS WHO ARE STILL TRYING TO GRAPPLE WITH THIS KIND OF PARTNERSHIP IS THE SELFCONFIDENCE MRS CLINTON EXUDES AND THE BRAIN POWER SHE UNLEASHES SHE'S AS SMART AS A TREEFUL OF OWLS SAYS CHARLES MURPHY JR A FORMER CHAIRMAN OF THE ARKANSAS BUSINESS COUNCIL AND CHAIRMAN OF MURPHY OIL CO ONE OF ARKANSAS' LARGEST CONCERNS SHE'S MORE FOCUSED THAN HER HUSBAND SAYS BETSEY WRIGHT FORMER CHIEF OF STAFF TO MR CLINTON WHEN HE WAS GOVERNOR WHEN IT COMES TO REACHING A SOLUTION TO A PROBLEM MS WRIGHT SAYS IT DOESN'T TAKE HER NEAR AS LONG TO GET THERE AS IT DOES FOR HIM MRS CLINTON ALSO IS UNABASHED ABOUT THE PROFESSIONAL PARTNERSHIP SHE HAS FORMED WITH HER HUSBAND AND OFTEN USES THE TERM WE TO DESCRIBE PRESIDENTIAL ACTIONS WHEN SHE SPOKE TO REP ROSTENKOWSKI HE SAYS SHE THANKED HIM FOR SENDING POLICY MEMORANDA TO HER HUSBAND WHICH SHE SAID THEY BOTH HAD READ YOU'VE BEEN A REAL FRIEND HE SAYS SHE ADDED WE HOPE YOU CAN HELP US MS SHALALA BRIDLES AT THE SUGGESTION THAT SHE AND OTHERS IN THE ADMINISTRATION ARE HILLARY PEOPLE WE THINK OF OURSELVES AS CLINTON PEOPLE SHE SAYS BOTH OF THEM WILL HAVE VERY STRONG ROLES IN DEVELOPING AND PROMOTING HEALTHCARE OVERHAUL THE CURIOUS THING ABOUT WHAT IS SOMETIMES CALLED THE BILLARY PARTNERSHIP IS THAT FOLKS IN ARKANSAS NOT ALWAYS PORTRAYED AS ONE OF THE NATION'S NEW AGE OUTPOSTS SEEM LESS WORRIED ABOUT MRS CLINTON'S ROLE THAN PEOPLE HERE IN WASHINGTON THEY HAVE BECOME ACCUSTOMED TO IT BY ALMOST EVERY ACCOUNT SHE REMAINS A POPULAR FIGURE IN HER ADOPTED STATE DICK MORRIS IS NOW A REPUBLICAN POLLSTER HE SWITCHED ALLEGIANCES IN 1988 BUT HE WORKED FOR MR CLINTON THROUGH HIS LAST CAMPAIGN FOR GOVERNOR IN 1990 AND STILL ADVISES HIM HE SAYS THAT IN ALL THE ARKANSAS POLLS HE HAS TAKEN IN WHICH HE MEASURED MRS CLINTON'S POPULARITY THE FAVORABLE RATING HAS NEVER BEEN LESS THAN THREE TO ONE MR MORRIS ATTRIBUTES THIS TO HER ROLE IN PUSHING THROUGH EDUCATION REFORM AS HER HUSBAND'S PARTNER IN 1983 PEOPLE IN ARKANSAS SAW HER AS THE LEAD PERSON ON THAT AND IT WASN'T BECAUSE SHE ADVOCATED SMALLER CLASSROOM SIZE OR MORE PAY FOR TEACHERS HE SAYS IT WAS BECAUSE THE PROGRAM SHE DEVELOPED AS HEAD OF THE ARKANSAS EDUCATION STANDARDS COMMITTEE REQUIRED COMPETENCE TESTING FOR TEACHERS SHE TOOK ON THE ESTABLISHMENT THE ARKANSAS EDUCATION ASSOCIATION THE UNION AND SHE WON THAT WAS WIDELY SEEN IN ARKANSAS AS SOMETHING WELL OUTSIDE THE LIBERAL PRISM INTO WHICH PEOPLE HAD TRIED TO PLACE HER IT IS OF COURSE AS A LIBERAL THAT HER OPPONENTS ARE TRYING TO CONDEMN HER IT GETS PRETTY ROUGH ONE BOOK HILLARIOUS BY GEORGE GRANT TIES HER TO THE DEMOCRATIC PARTY'S ABORTION BATTLEMENTS OF THE FEMINAZI SENSITIVITYORELSE CROWD SPY MAGAZINE PUT HER ON ITS COVER IN LEATHER AND CHAINS HOLDING A WHIP LIKE ELEANOR ROOSEVELT MRS CLINTON WILL BE IN THE EYE OF THE STORM CRITICIZED FOR HER OWN ACTIONS AND SINGLED OUT AS THE MOST VULNERABLE TARGET FOR HURTING HER HUSBAND SHE SOMETIMES SEEMS TO INVITE THE ATTENTION AS WHEN SHE SAID SHE COULD HAVE STAYED AT HOME BAKED COOKIES AND HAD TEAS INSTEAD OF BECOMING A SUCCESSFUL LAWYER AND KEY ADVISER TO HER HUSBAND SHE INVITES ATTENTION NOW BY INSISTING THAT SHE BE CALLED HILLARY RODHAM CLINTON SHE HAD PREVIOUSLY CHANGED HER NAME TO HILLARY CLINTON FROM HILLARY RODHAM AFTER HER HUSBAND WAS DEFEATED FOR REELECTION AS ARKANSAS GOVERNOR IN 1980 THERE ARE ALL THESE CONNOTATIONS ABOUT HILLARY SAYS CONSERVATIVE GOP STRATEGIST DONALD DEVINE THE NAME BUSINESS HER ASSOCIATION WITH THE CHILDREN'S DEFENSE FUND WHICH WE SEE AS A RADICAL ORGANIZATION SHE'S VERY HANDY FOR THE RIGHT THE QUESTION FOR REPUBLICANS IS WHETHER TO BEGIN ATTACKING MRS CLINTON NOW AS A WAY OF GETTING AT HER HUSBAND OR ALLOW HER ENOUGH TIME TO DO DAMAGE HERSELF SPEAKERS AT THE GOP NATIONAL CONVENTION PATRICK BUCHANAN AND MARILYN QUAYLE CHIEF AMONG THEM TRIED ATTACKING MRS CLINTON AS A KIND OF SUPERLIBERAL FEMINIST WHO WOULD SEEK TO CHANGE THE ROLE OF THE TRADITIONAL AMERICAN FAMILY IT DIDN'T WORK AND SO MANY GOP STRATEGISTS ARE RELUCTANT TO TRY IT AGAIN NOT QUITE YET ANYWAY THESE RIGHTWING ATTACKS ARE COUNTERPRODUCTIVE SAYS MR BREGLIO THE GOP POLLSTER POLITICIANS ARE MOST FREQUENTLY HOISTED BY THEIR OWN PETARDS AND THAT'S WHERE SHE'S GOING TO END UP I SUSPECT MRS CLINTON'S BOOSTERS SAY IT IS THE ARKANSAS MODEL THE NATION SHOULD WATCH IN THE WHITE HOUSE SAYS LISA CAPUTO HER SPOKESWOMAN MRS CLINTON WILL BE AN ADVISER TO THE PRESIDENT ON MATTERS OF DOMESTIC POLICY IT WILL BE PARALLEL TO WHAT HAPPENED IN ARKANSAS MRS CLINTON DECLINED TO BE INTERVIEWED FOR THIS STORY SHE DID TAKE ON A CHALLENGING TASK IN ARKANSAS EDUCATION REFORM AND SHE PULLED IT OFF WHEN SHE REPORTED HER FINDINGS TO THE STATE LEGISLATURE LATE IN 1983 TALKING FOR MORE THAN AN HOUR WITHOUT NOTES SHE WON A STANDING OVATION FROM LAWMAKERS WHO HAD BEEN SKEPTICAL ABOUT WHERE SHE WANTED TO TAKE THEM SHE THEN TOURED THE STATE AND SOLD THE VOTERS ON THE PLAN BUT ARKANSAS IS NOT WASHINGTON AND EDUCATION REFORM IN THAT STATE IS NOT HEALTHCARE REFORM FOR THE WHOLE COUNTRY THIS IS AN IMMENSE CHALLENGE AND IF MRS CLINTON FOR WHOM THERE ARE SUCH HIGH EXPECTATIONS FAILS TO MEET IT THERE WILL BE SERIOUS POLITICAL CONSEQUENCES FOR HER HUSBAND'S ADMINISTRATION SHOULD HILLARY CLINTON BE INVOLVED IN THE DEVELOPMENT OF MAJOR POLICY POSITIONS IS HILLARY CLINTON A POSITIVE ROLE MODEL FOR AMERICAN WOMEN SHOULD THE FIRST LADY BE KNOWN AS HILLARY CLINTON OR HILLARY RODHAM CLINTON 9301280056 930128 BUSINESS BRIEF NORFOLK SOUTHERN CORP COMPANY SWINGS TO PROFIT AFTER BIG YEARAGO CHARGES NORFOLK SOUTHERN CORP REPORTED FOURTHQUARTER NET INCOME OF 1282 MILLION OR 91 CENTS A SHARE COMPARED WITH A LOSS OF 3546 MILLION OR 237 A SHARE BUT THE GAIN IS LARGELY ATTRIBUTABLE TO CHARGES FOR WORKFORCE REDUCTIONS AND ASSET WRITEDOWNS IN 1991 REVENUE AT THE NORFOLK VA RAILROAD HOLDING COMPANY ROSE 61 TO 117 BILLION FROM 110 BILLION THE 1992 QUARTER HAD A CHARGE OF 27 MILLION REFLECTING AN ACTUARIAL VALUATION OF CASUALTY CLAIMS AND WORKERS' COMPENSATION AT ITS NORTH AMERICAN VAN LINES INC UNIT WHILE THE 1991 QUARTER INCLUDED A CHARGE OF 680 MILLION EXCLUDING THE 1991 CHARGE FOURTHQUARTER EARNINGS WERE OFF 10 AN INDUSTRY ANALYST CITED OPERATING LOSSES FOR THE VAN LINES UNIT AS THE PRIMARY CAUSE FOR THE DOWNTURN IN OPERATING EARNINGS NET FOR 1992 ROSE TO 5577 MILLION OR 394 A SHARE FROM THE YEAREARLIER 297 MILLION OR 20 CENTS A SHARE REVENUE ROSE 34 TO 4461 BILLION 9301280055 930128 REVIEW & OUTLOOK EDITORIAL UPSIDEDOWN JUSTICE WHEN ISRAEL DEPORTED SOME 400 PALESTINIANS FOR THE TERRORIST ACTIVITIES OF THE HAMAS AND ISLAMIC HOLY WAR GROUPS THE PALESTINIAN LIBERATION ORGANIZATION JUMPED ON THE PUBLICITY TRAIN THE PLO CALLED FOR AN ARAB SUSPENSION OF THE MIDEAST PEACE TALKS AND THEN PREVAILED UPON LEBANON TO LEAVE THE BUNCH IN A NOMAN'S LAND NORTH OF ISRAEL FOR MORE PHOTO OPS SO WE COULDN'T HELP BUT NOTICE THE IRONY WHEN THE PLO'S REPRESENTATIVE TO FRANCE FLED THE COUNTRY LAST WEEK ALLEGING PLAUSIBLY THAT HE WAS BEING HUNTED BY A HAMAS HIT SQUAD DESPITE THE PUBLIC HOOPLA ATTENDING THE PALESTINIAN DEPORTEES THE PLO ISN'T ANXIOUS TO SEE THE HAMAS EXILES BACK IN BUSINESS NOR ARE MORE THAN A HALFDOZEN OTHER STATES NOW WRESTLING FUNDAMENTALIST TERROR EGYPT HAS CRACKED DOWN ON FUNDAMENTALIST ACTIVITY AND ALGERIA IS AT WAR WITH FUNDAMENTALIST GROUPS JORDAN AND SAUDI ARABIA ARE HAVING DIFFICULTIES CONTROLLING RADICAL GROUPS IN TURKEY YESTERDAY THERE WAS A MASS DEMONSTRATION AGAINST ISLAMIC FUNDAMENTALISM AT THE FUNERAL OF AN ANTIRADICAL JOURNALIST KILLED BY A CAR BOMB SUNDAY ALL THESE COUNTRIES REALIZE THAT ISRAELI PRIME MINISTER YITZHAK RABIN HAS STAKED HIS CREDIBILITY ON THE ISSUE IF HE IS TO MAKE ANY TERRITORIAL CONCESSIONS IN THE PEACE PROCESS MR RABIN HAS TO SHOW ISRAELIS THAT HE WILL TAKE EVERY MEASURE TO ENSURE THEIR SECURITY BUT WHILE THE PLO HAS NO LOVE FOR HAMAS IT AND OTHERS COULDN'T RESIST THE TEMPTATION TO EXPLOIT THE EXPULSION ISSUE TO GALVANIZE PUBLIC OPINION AGAINST ISRAEL INDEED THERE SEEMS TO BE A NEW EFFORT AFOOT TO RALLY MUSLIMS AGAINST THE WEST ARAB NATIONS HAVE CONDEMNED THE RECENT ALLIED BOMBING OF IRAQ WHILE DEPLORING THE WEST'S WEAK RESPONSE TO THE PLIGHT OF BOSNIA'S MUSLIMS THAT THE VAGARIES OF ARAB POLITICS CALL FOR SOMETIMES CONTRADICTORY POSITIONS IS NOTHING NEW THAT THEY ARE FINDING SUCH AN EASY CONDUIT IN THE UN IS MORE PORTENTOUS SECRETARYGENERAL BOUTROS BOUTROSGHALI HAS RECOMMENDED THAT THE UN SECURITY COUNCIL TAKE MEASURES TO FORCE ISRAEL TO REPATRIATE THE DEPORTED PALESTINIANS HE EVEN PROPOSED UN MONITORING OF HOW THE ISRAELIS TREAT THE NEARLY TWO MILLION PALESTINIANS IN THE WEST BANK AND GAZA STRIP THE ISSUE MAY BE SETTLED IF THE ISRAELI HIGH COURT OF JUSTICE RULES THAT THE DEPORTATIONS WERE ILLEGAL OR A COMPROMISE SHORTENING THE LENGTH OF THE EXILE PERIOD IS REACHED BUT A SECURITY COUNCIL DEBATE WOULD FORCE THE CLINTON ADMINISTRATION TO EITHER USE ITS VETO FOR THE FIRST TIME IN TWO YEARS OR SEE SANCTIONS IMPOSED ON ISRAEL A US ALLY ISRAEL HAS USED DEPORTATIONS SINCE 1967 TO DEAL WITH ORGANIZERS OF TERRORIST ACTIVITIES THE FOLKS THAT ACTUALLY THROW THE HAND GRENADES ARE USUALLY TRIED AND IMPRISONED WHILE THE INTERNATIONAL COMMUNITY HAS CONDEMNED ISRAEL'S DEPORTATIONS AS BEING AGAINST THE GENEVA CONVENTION THERE HAS ALWAYS BEEN THE UNDERSTANDING THAT THE DEPORTEES ARE PEOPLE WHOSE LIVES ARE DEDICATED TO THE DESTRUCTION OF THE STATE OF ISRAEL AND WHOSE MEANS ARE BEYOND THE PALE ISRAEL'S EXPULSION OF PEOPLE IT CONSIDERS A SERIOUS THREAT TO ITS SECURITY IS NOT THE SAME AS SADDAM HUSSEIN'S ANNEXATION OF A NEIGHBORING COUNTRY AND THE REGIONAL THREAT HE POSES THE DEPORTATIONS MAY NOT BE SANCTIONED BY INTERNATIONAL LAW BUT THEY ENABLE A LOT OF ISRAELI CITIZENS TO SLEEP BETTER AT NIGHT IT WOULD BE A STRANGE PERVERSION OF THE UN'S MANDATE IF IT PENALIZED A STATE'S RIGHT TO GUARANTEE THE SECURITY OF ITS CITIZENS 9301280054 930128 NEOGEN TO ACQUIRE PRODUCT LINES LANSING MICH NEOGEN CORP AN AGRICULTURAL BIOTECHNOLOGY CONCERN SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE PLANT DIAGNOSTICS PRODUCT LINES OF AGRIDIAGNOSTICS ASSOCIATES A UNIT OF DNA PLANT TECHNOLOGY CINNAMINSON NJ TERMS OF THE AGREEMENT WEREN'T DISCLOSED 9301280053 930128 DIVIDEND NEWS CONTINENTAL MORTGAGE & EQUITY TRUST CONTINENTAL MORTGAGE & EQUITY TRUST DALLAS SAID IT RESUMED PAYMENT OF ITS QUARTERLY DIVIDEND OF 10 CENTS A SHARE BECAUSE OF CONTINUED IMPROVEMENT IN NET INCOME FROM PROPERTIES POSITIVE CASH FLOW AND SATISFACTORY CASH RESERVES THE REAL ESTATE INVESTMENT TRUST SAID IT WILL PAY THE DIVIDEND MARCH 1 TO SHAREHOLDERS OF RECORD FEB 15 THE CURRENT PAYMENT WILL BE PAID FROM OPERATING INCOME IT SAID THE TRUST LAST PAID A DISTRIBUTION OF 106 A SHARE IN MAY 1991 9301280052 930128 MCDONALD'S CORP NET INCOME ROSE 14 IN FOURTH QUARTER OAK BROOK ILL MCDONALD'S CORP SAID FOURTHQUARTER EARNINGS ROSE 14 ON A 57 INCREASE IN REVENUE AS PROFIT MARGINS IN THE COMPANY'S US OPERATIONS STRENGTHENED THE FASTFOOD CONCERN'S NET INCOME FOR THE QUARTER CLIMBED TO 2279 MILLION OR 61 CENTS A SHARE FROM 2004 MILLION OR 54 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 183 BILLION FROM 173 BILLION SYSTEMWIDE SALES THOSE OF FRANCHISEE AND AFFILIATE OUTLETS IN ADDITION TO THE COMPANY'S OWN RESTAURANTS ROSE 10 TO 571 BILLION FROM 517 BILLION IN THE YEAREARLIER QUARTER MCDONALD'S CITED VARIOUS PROMOTIONAL EFFORTS FOR THE SALES UPTURN IT CALLED THE LATEST PERIOD'S 9 INCREASE IN US SALES THE STRONGEST PERFORMANCE OF ANY QUARTER SINCE 1988 DOMESTIC PROFIT MARGINS BENEFITED FROM COSTCUTTING MEASURES THE COMPANY IMPLEMENTED EARLIER MCDONALD'S SAID IN ADDITION ADVERTISING OUTLAYS DECLINED AS A PROPORTION OF SALES ALSO CONTRIBUTING TO HIGHER SALES AND EARNINGS THE COMPANY SAID IS ITS VALUE PROGRAM IN WHICH IT DROPPED EARLIER TEMPORARY PRICECUTTING EFFORTS IN FAVOR OF A GENERAL ROLLBACK IN PRICES WHILE MANY OVERSEAS MARKETS SHOW EXCELLENT SALES GAINS OPERATING RESULTS REMAINED WEAK IN JAPAN AND TROUBLED ECONOMIES ALSO DEPRESSED PROFITABILITY FROM OPERATIONS IN CANADA AND ENGLAND MCDONALD'S SAID FOR THE YEAR THE COMPANY REPORTED NET ROSE 12 TO 9586 MILLION OR 260 A SHARE WHILE REVENUE ROSE 7 TO 713 BILLION 9301280051 930128 TECHNOLOGY & HEALTH MOTOROLA PLANS TO UNVEIL ADVANCE IN HDTV SYSTEMS SCHAUMBURG ILL MOTOROLA INC HOPING TO PIQUE THE ATTENTION OF FEDERAL REGULATORS PLANS TO DEMONSTRATE NEXT WEEK A HIGHDEFINITION TELEVISION SYSTEM DEVELOPED WITH GENERAL INSTRUMENT CORP THE DEMONSTRATION TO BE HELD IN WASHINGTON WILL INTRODUCE A SET OF COMPUTER CHIPS THAT IS KEY TO THE SYSTEM SAID ROGER KOZLOWSKI A MOTOROLA VICE PRESIDENT AND TECHNICAL DIRECTOR THE CHIPSET ENABLES THE ELECTRONICS OF SUCH A SYSTEM WHICH IN THE PAST REQUIRED RACKS OF EQUIPMENT TO BE SHRUNK TO THE SIZE OF A SMALL CIRCUIT BOARD HE SAID SEVERAL GROUPS ARE COMPETING TO ESTABLISH A US STANDARD FOR HDTV SYSTEMS NEXT MONTH AN ADVISORY COMMITTEE IS EXPECTED TO RECOMMEND TO THE FEDERAL COMMUNICATIONS COMMISSION THE SYSTEM IT THINKS THE US SHOULD ADOPT NEITHER MOTOROLA NOR GENERAL INSTRUMENT PLANS TO MANUFACTURE HDTV SETS MR KOZLOWSKI SAID INSTEAD THEY PLAN TO DEVELOP THE TECHNOLOGY AND LICENSE IT TO CONSUMER ELECTRONICS COMPANIES HE SAID THE TWO COMPANIES ARE IN DISCUSSIONS WITH PROSPECTIVE MANUFACTURERS IN THE US JAPAN AND SOUTH KOREA PRICES OF HDTV SETS USING THE MOTOROLAGENERAL INSTRUMENTS TECHNOLOGY ARE EXPECTED TO START AT ABOUT 2500 FOR A 35INCH SET AND THE SETS AND CAN BE READY FOR MARKET NEXT YEAR MR KOZLOWSKI SAID HDTV SETS SELL IN JAPAN FOR THOUSANDS OF DOLLARS MORE 9301280050 930128 PETER KIEWIT UNIT WINS CONTRACT DALLAS MFS NETWORK TECHNOLOGIES INC A UNIT OF OMAHA NEB CONSTRUCTION COMPANY PETER KIEWIT SONS INC SAID IT HAS BEEN TAPPED BY LIMITED PARTNERSHIP CALIFORNIA PRIVATE TRANSPORTATION CO TO PROVIDE AN ELECTRONIC TOLLTAG SYSTEM FOR A PRIVATELY OWNED CALIFORNIA TOLL ROAD MFS USING A TECHNOLOGY DEVELOPED BY DALLASBASED TEXAS INSTRUMENTS INC WILL INSTALL THE SYSTEM ON A STRETCH OF STATE ROUTE 91 WHICH CONNECTS ORANGE AND RIVERSIDE COUNTIES IN SOUTHERN CALIFORNIA TERMS WEREN'T DISCLOSED THE TOLLTAG SYSTEM USES WINDSHIELDMOUNTED TAGS READ BY INFRARED BEAMS TO AUTOMATICALLY CHARGE A TOLL TO A COMMUTER'S ACCOUNT 9301280049 930128 MARKETSCAN MAKERS OF PERSONALCARE PRODUCTS HOPE TO CLEAN UP WITH BRANDS FOR CHILDREN BY KATHLEEN DEVENY AMERICA'S KIDS WILL BE A LITTLE CLEANER BEHIND THE EARS IF SOME OF THE NATION'S MOST POWERFUL MARKETERS HAVE THEIR WAY WITHIN THE PAST TWO YEARS MAINSTREAM MARKETERS HAVE INTRODUCED A SLEW OF FANCY SHAMPOOS BUBBLE BATHS AND EVEN DEODORANTS DESIGNED TO ENCOURAGE CHILDREN TO COME CLEAN AND HELP WASH AWAY GUILT FROM BUSY PARENTS WHO WISH THEY COULD SPEND MORE TIME WITH THEIR BROOD WITH SALES OF MOST PERSONALCARE PRODUCTS FOR ADULTS GROWING SLOWLY MARKETERS ARE LIKELY TO KEEP WORKING HARD TO CONVINCE PARENTS TO LAVISH MORE MONEY ON JUNIOR THE LURE OF THE MOPPET MARKET IS CLEAR SALES OF CHILDREN'S TOILETRIES IN DRUGSTORES AND SUPERMARKETS GREW 12 TO MORE THAN 260 MILLION IN 1992 ACCORDING TO TOWNEOLLER & ASSOCIATES A NEW YORKBASED UNIT OF INFORMATION RESOURCES INC FOR YEARS SMALL COMPANIES DOMINATED THE MARKET FOR PRODUCTS AIMED AT KIDS BETWEEN THE AGES OF TWO AND 10 WHILE JOHNSON & JOHNSON AND MENNEN NOW A SUBSIDIARY OF COLGATEPALMOLIVE CO SPUN OUT PRODUCTS TO KEEP BABIES CLEAN BUT SC JOHNSON & SON INC MADE A SPLASH IN 1990 WITH A LINE OF BATH PRODUCTS FOR KIDS UNDER THE FISHERPRICE LABEL JOHNSON & JOHNSON FOLLOWED IN EARLY 1992 WITH ITS BATHTIME BUDDIES LINE FEATURING LICENSED WINNIE THE POOH CHARACTERS NOW OTHER BIG PACKAGEDGOODS MARKETERS ARE IN A LATHER OVER KIDS IN JULY PROCTER & GAMBLE CO LAUNCHED PERT PLUS FOR KIDS A TEARFREE FORMULATION OF ITS BESTSELLING SHAMPOO THE COMPANY ALSO RECENTLY ROLLED OUT ITS BAIN DE SOLEIL KIDS SPORT SUNSCREEN MEANWHILE DIAL CORP IS IN THE PROCESS OF ROLLING OUT CROCO'DIAL A LIQUID ANTIBACTERIAL SOAP IN A CROCODILESHAPED PUMP AND JOHNSON & JOHNSON HAS JUST BEGUN SHIPPING A LINE OF FIRSTAID PRODUCTS AIMED DIRECTLY AT KIDS INCLUDING AN ANTISEPTIC SPRAY CALLED NO MORE OUCHIES AND A 1 HYDROCORTISONE TREATMENT DUBBED NO MORE ITCHIES BUT NOT ALL OF THEM ARE DESTINED TO SUCCEED COMPETITION IS GETTING MORE INTENSE ALREADY CUTTING INTO FISHERPRICE'S SALES AND APPEALING TO BOTH CHILDREN AND THEIR PARENTS CAN BE TRICKY EVEN SOME BIG PLAYERS HAVE FLUBBED BADLY IN THEIR EFFORTS TO TAP THE MARKET REVLON INC HAS LAUNCHED SEVERAL PRODUCTS FOR KIDS IN RECENT YEARS INCLUDING A BABY SHAMPOO AND A BUBBLE BATH FEATURING NINTENDO CHARACTERS NONE REMAIN ON THE MARKET THE COMPANY CONCEDES THAT ITS EFFORTS WERE FLAWED AND THAT THE CHILDREN'S BUSINESS IS ENTIRELY DIFFERENT FROM ITS CORE WOMEN'S COSMETICS OPERATIONS KIDS HAVEN'T OVERCOME THEIR NATURAL AVERSION TO SOAP AND WATER THE CURRENT SPATE OF NEW PRODUCTS HAS FAR MORE TO DO WITH MARKETING THAN IMPROVING PERSONAL HYGIENE SALES OF MOST HEALTH AND BEAUTYCARE PRODUCTS ARE EXPANDING AT THE GLACIAL RATE OF POPULATION GROWTH LAST YEAR FOR EXAMPLE SALES OF FIRSTAID PRODUCTS GREW 3 IN SUPERMARKETS AND DRUGSTORES WHILE SALES OF ADULT SHAMPOOS DIPPED 1 ACCORDING TO TOWNEOLLER MANUFACTURERS ARE LOOKING FOR WAYS TO INCREASE THE SIZE OF THE PIE SAYS JOHN POHL A VICE PRESIDENT OF MARKETING FOR DIAL TO ACHIEVE THAT GROWTH MARKETERS ARE BETTING PARENTS WILL BUY BRANDS THEIR KIDS PREFER AS LONG AS THE PRICE IS RIGHT THAT'S AN EASIER SELL IF THE PRODUCT ENCOURAGES BEHAVIOR PARENTS ENDORSE SUCH AS FREQUENT HAND WASHING AND OLDER PARENTS WHO TYPICALLY HAVE FEWER CHILDREN AND MORE MONEY TO SHOWER ON EACH ONE ARE ESPECIALLY RESPONSIVE TO MARKETERS' LATEST EFFORTS WORKING PARENTS FEEL VERY GUILTY ABOUT NOT SPENDING MORE TIME WITH THEIR KIDS SAYS IRMA ZANDL PRESIDENT OF ZANDL GROUP A NEW YORK CONSULTING FIRM SPECIALIZING IN YOUTH MARKETING THEY'RE VERY OPEN TO ANYTHING THEY CAN DO TO PAMPER THEIR KIDS THAT'S NOT THE CASE FOR CAROL COLMAN A 47YEAROLD MARKETING CONSULTANT IN NORTH SALEM NY MS COLMAN SAYS SHE HAS PURCHASED SOAPS IN THE SHAPES OF ENDANGERED ANIMALS FOR HER FOURYEAROLD DAUGHTER ELIZABETH BUT SHE WOULD NOT BUY CHILDREN'S SHAMPOO IN A FANCY BOTTLE BECAUSE SHE BELIEVES IT IS TOO EXPENSIVE AND THE PACKAGING IS WASTEFUL SHE USES HER OWN SHAMPOO DILUTED WITH WATER TO CLEAN ELIZABETH'S HAIR I DON'T FEEL GUILTY SHE SAYS ADDING SHAMPOO IS SHAMPOO FUELING THE CATEGORY'S GROWTH IS NEWPRODUCT ACTIVITY AND NOT ALL PRODUCTS ARE CLEANING UP SALES OF TOOTHPASTES FOR KIDS WHICH WERE INTRODUCED IN THE LATE 1980S DECLINED 6 IN SUPERMARKETS AND DRUGSTORES LAST YEAR ACCORDING TO TOWNEOLLER MEANWHILE SALES OF ADHESIVE BANDAGES SUCH AS CURAD DINOSAUR STRIPS SHOT UP 23 KID'S SHAMPOO SALES INCREASED 16 THE EXPERIENCE OF WILLIAM & CLARISSA INC A SMALL COMPANY THAT STARTED OUT SELLING TRENDY TOILETRIES FOR CHILDREN UNDER THE KIDS BRAND IN SUCH UPSCALE OUTLETS AS FAO SCHWARZ TOY STORES ILLUSTRATES THE PERILS OF TARGETING TOTS IT EXPANDED INTO DRUGSTORES SUPERMARKETS AND MASSMERCHANDISE OUTLETS IN 1991 BUT COMPETITORS WITH MORE MONEY FOR ADVERTISING AND CHEAPER PRODUCTS SOON BEGAN SQUEEZING THE BRAND OFF STORE SHELVES THE COMPANY HAS SINCE GOTTEN OUT OF THE PERSONALCARE MARKET ALTOGETHER NOW CALLED FINET HOLDINGS CORP THE COMPANY IS INVOLVED IN THE RESIDENTIAL MORTGAGE FINANCING BUSINESS THE WILLIAM & CLARISSA LINE MISSED THE MARK WITH CONSUMERS BECAUSE IT WAS TOO EXPENSIVE AND BECAUSE THE PACKAGING WAS DESIGNED MORE FOR ADULTS THAN TODDLERS ACCORDING TO RENA KARL EDITOR OF THE MARKETING TO KIDS REPORT A NEWSLETTER IN ENCINITAS CALIF ALTHOUGH THE LETTERING ON THE PACKAGES WAS IN A CHILDLIKE SCRAWL THE COLORS TEAL PEACH LAVENDER AND FUSCHIA WERE FROM A DECIDEDLY ADULT PALETTE THOSE ARE COLORS ADULTS LIKE TO USE TO DECORATE THEIR BATHROOMS SAYS MS KARL THEY DON'T APPEAL TO CHILDREN ALTHOUGH IT IS TOO SOON TO PREDICT WHICH OF THE MYRIAD NEW PRODUCTS FOR KIDS WILL SUCCEED MS KARL MAINTAINS THAT THE MOST SUCCESSFUL PRODUCTS TYPICALLY TARGET THE MOPPETS THEMSELVES NOT ADULTS PACKAGES THAT FEATURE BOLD COLORS OFTEN WORK BEST LICENSED CHARACTERS ALSO ARE SUCCESSFUL FOR EXAMPLE JOHNSON & JOHNSON'S BATHTIME BUDDIES LINE OF HAIRCARE AND SKINCARE PRODUCTS AIMED AT KIDS BETWEEN THE AGES OF TWO AND SIX RANG UP 25 MILLION IN SALES IN ITS FIRST YEAR ON THE MARKET TO BOOST SALES OF ITS LIQUID ANTIBACTERIAL SOAP DIAL ALSO TOOK AIM MORE DIRECTLY AT KIDS THE COMPANY HAS LONG PITCHED ITS LIQUID HAND SOAP AS GOOD FOR GRUBBY YOUNGSTERS BUT SENT THAT MESSAGE TO ADULTS TO CATCH CHILDREN'S ATTENTION DIAL STARTED PACKAGING ITS REGULAR HAND SOAP IN A REFILLABLE PLASTIC GREEN CROCODILE CHOOSING THE RIGHT FRAGRANCE IS ALSO IMPORTANT TO WINNING OVER KIDS WHO TYPICALLY PREFER SWEET FRUITY SCENTS PROCTER & GAMBLE PACKAGED ITS PERT PLUS FOR KIDS WHICH TARGETS KIDS BETWEEN THREE AND 10 IN A PASTEL YELLOW BOTTLE THAT SEEMS AIMED AT ADULTS BUT THE SHAMPOO AND CONDITIONER COMBINATION HAS A NEW FRUITY SCENT AND HAS BEEN REFORMULATED TO BE MILDER FOR CHILDREN'S HAIR AND EASIER ON THEIR EYES WHILE TEMPTING TOTS IS IMPORTANT MARKETERS SAY ADULTS MUST BELIEVE THE PRODUCT HAS SOME BENEFIT EVEN THOUGH IT MAY ONLY BE ENTERTAINMENT VALUE ONE SEEMING EXCEPTION TO THE PRACTICALITY RULE FUN 'N FRESH A DEODORANT PITCHED AT KIDS BETWEEN SEVEN AND 12 SALES OF THE TWOYEAROLD BRAND MARKETED BY BERTSHERM INC OF CLEVELAND GREW 24 LAST YEAR TO MORE THAN 300000 THE PRODUCT COMES IN A SLIM PACKAGE MEANT TO BE EASY FOR KIDS TO HOLD AND CONTAINS NO ALUMINUM BECAUSE KIDS ARE ACTIVE THEY DO SWEAT SAYS PHILIP DAVIS BERTSHERM'S PRESIDENT WE'VE HAD A VERY FAVORABLE RESPONSE FROM CONSUMERS ALTHOUGH OTHER MARKETERS OF DEODORANTS SAY BODY ODOR ISN'T A PROBLEM UNTIL KIDS HIT PUBERTY THERE IS APPARENTLY A GROUP OF YOUNGSTERS WHO ASPIRE TO PERSPIRE COLGATE'S MENNEN SUBSIDIARY LAUNCHED TEEN SPIRIT DEODORANT IN 1990 AS A PRODUCT FOR TEENAGERS BUT SOON REALIZED YOUNGER KIDS WERE BUYING IT IT TURNS OUT THAT FEW SELFRESPECTING TEENAGERS WOULD BUY A PRODUCT WITH THE WORD TEEN IN THE NAME YOUNGER KIDS WHO LONG FOR THE TEEN TITLE HOWEVER THINK THE PRODUCT IS COOL NOW INCLUDED ON THE PACKAGING A SCRATCHANDSNIFF PATCH THAT LETS KIDS SAMPLE SUCH FRAGRANCES AS CARIBBEAN COOL AND BABY POWDER SOFT WITH SALES OF MOST PERSONALCARE PRODUCTS GROWING SLOWLY MARKETERS ARE SCRAMBLING TO LAUNCH ITEMS FOR CHILDREN INCLUDING CROCO'DIAL LIQUID SOAP FROM DIAL NO MORE OUCHIES ANTISEPTIC SPRAY FROM JOHNSON & JOHNSON AND PROCTER & GAMBLE'S PERT PLUS FOR KIDS BASED ON SALES IN SUPERMARKETS AND DRUGSTORES DURING THE 12 MONTHS ENDED DEC 31 9301280048 930128 WHO'S NEWS GEORGIAPACIFIC'S CORRELL TO BECOME CEO IN MAY ATLANTA GEORGIAPACIFIC CORP NAMED AD PETE CORRELL THE COMPANY'S CURRENT PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE OFFICER EFFECTIVE MAY 4 MR CORRELL AGE 51 WILL SUCCEED T MARSHALL HAHN JR 66 CHAIRMAN AND CHIEF EXECUTIVE THE MOVE HAD BEEN EXPECTED MR CORRELL WILL ALSO ASSUME THE POST OF CHAIRMAN FOLLOWING MR HAHN'S RETIREMENT DEC 2 MR HAHN WILL CONTINUE AS A DIRECTOR FOLLOWING HIS RETIREMENT THE FORESTPRODUCTS CONCERN SAID IT DOESN'T PLAN TO FILL THE POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER WHEN MR CORRELL BECOMES CHAIRMAN IN DECEMBER GEORGIAPACIFIC SAID ITS BOARD ALSO NAMED JAMES C VAN METER 54 CURRENTLY EXECUTIVE VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER TO THE ADDITIONAL POST OF VICE CHAIRMAN ADDITIONALLY WE BABIN 57 EXECUTIVE VICE PRESIDENTPULP AND PAPERBOARD RESPONSIBLE FOR THE COMPANY'S PULP PAPERBOARD CONTAINERBOARD AND PACKAGING OPERATIONS WAS NAMED EXECUTIVE VICE PRESIDENTPULP AND PAPER EFFECTIVE IMMEDIATELY HIS EXECUTIVE MANAGEMENT RESPONSIBILITIES NOW WILL INCLUDE COMMUNICATION PAPERS PACKAGED PRODUCTS AND BUTLER PAPER AND MAILWELL MR CORRELL SAID HE SEES NO CHANGES IN STRATEGY WHEN HE TAKES CONTROL IN MAY HE SAID HE EXPECTS CAPITAL SPENDING TO BE IN THE 500 MILLION RANGE THIS YEAR COMPARED WITH 380 MILLION IN 1992 HE ADDED THAT GEORGIAPACIFIC WON'T EMBARK ON MAJOR CAPITAL PROJECTS UNTIL IT SEES THE ECONOMY TURN AROUND AND EARNINGS IMPROVE 9301280047 930128 IBM PANEL SEARCHING FOR NEXT CEO ALSO WILL REVIEW CORPORATE STRUCTURE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL JAMES BURKE THE LEADER OF THE COMMITTEE SEARCHING FOR THE NEXT CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP WILL HAVE AN EVEN BROADER MANDATE DECIDING WHAT CORPORATE STRUCTURE CAN REVIVE THE SPRAWLING COMPUTER COMPANY THE IBM FROM WHICH JOHN F AKERS ABRUPTLY RESIGNED AS CHIEF EXECUTIVE THIS WEEK IS IN THE THROES OF TRANSITION IT HAS A DOZEN BABY BLUE OPERATING UNITS BUT ALSO A LONG TRADITION OF ULTRACENTRALIZED CONTROL THOSE UNITS NOW MUST BE SPUN OFF RECONFIGURED FOLDED UP OR SET IN CANNIBALISTIC COMPETITION WITH ONE ANOTHER ACCORDING TO VARIOUS OBSERVERS MR BURKE RETIRED CHAIRMAN OF JOHNSON & JOHNSON IS SIGNALING THAT HE CONSIDERS HIS BRIEF TO INCLUDE THE VERY FUTURE OF IBM'S ORGANIZATION AND THAT HE IS STARTING WITH A CLEAN SHEET OF PAPER WE HAVEN'T THOUGHT THROUGH WHAT THE STRUCTURE OF THE MANAGEMENT OUGHT TO LOOK LIKE BUT IT DOESN'T HAVE TO LOOK LIKE IT DID BEFORE SAYS THE 67YEAROLD MR BURKE MR BURKE FORMALLY TOOK ON AN EXPANDED NEW ROLE AT IBM MONDAY WHEN IBM'S BOARD TAPPED ITS EXECUTIVE COMPENSATION COMMITTEE TO OVERSEE THE SEARCH FOR MR AKERS'S REPLACEMENT HEADED BY MR BURKE THE COMMITTEE INCLUDES SIX OTHER IBM DIRECTORS ALL OUTSIDERS NONE COMPUTER INDUSTRY EXPERTS MR BURKE AND HIS COMMITTEE ARE ALREADY RACING AHEAD IN THEIR SEARCH THEY BEGAN CONTACTING HEADHUNTERS THIS WEEK IN HOPES OF UNVEILING A SELECTION BY IBM'S LATEAPRIL ANNUAL MEETING THERE AREN'T THAT MANY PEOPLE WHO ARE CAPABLE OF BEING CHIEF EXECUTIVE OFFICER OF IBM MR BURKE SAID IF WE CAN'T PUT TOGETHER A LIST OF WHO THOSE PEOPLE ARE PRETTY QUICKLY THERE'S SOMETHING WRONG WITH THE PROCESS THEY JUST AREN'T HIDDEN THE COMMITTEE HAS ALREADY STARTED KNOCKING AROUND A FEW TENTATIVE NAMES I HAVE NATURALLY LOOKED AT SOME 'SUPPOSES' AND SO HAVE OTHERS MR BURKE SAYS MR BURKE WILL BE WORKING WITH HIS OLD FRIEND AND HARVARD BUSINESS SCHOOL CLASSMATE THOMAS MURPHY CHAIRMAN OF CAPITAL CITIES/ABC INC AND THREE OTHER EXECUTIVES STEPHEN BECHTEL RETIRED CHAIRMAN OF BECHTEL GROUP INC THOMAS FRIST CHAIRMAN OF HOSPITAL CORP OF AMERICA AND J RICHARD MUNRO RETIRED COCHAIRMAN OF TIME WARNER INC ON MONDAY THE BOARD ADDED TWO OTHER IBM OUTSIDE DIRECTORS TO MR BURKE'S COMMITTEE FORMER US SECRETARY OF DEFENSE HAROLD BROWN AND WELLESLEY COLLEGE PRESIDENT NANNERL KEOHANE MR BROWN A DISTINGUISHED PHYSICIST KNOWN FOR PEPPERING IBM EXECUTIVES WITH FEISTY QUESTIONS IS THE CLOSEST THE IBM BOARD COMES TO A TECHNICAL EXPERT BUT MR BURKE WILL CLEARLY BE THE PANEL'S STRONG HELMSMAN MR MUNRO SAYS THE COMMITTEE TAPPED MR BURKE TO BE ITS CHIEF LIAISON WITH THE OUTSIDE WORLD JIMMY IS WELL QUALIFIED TO GIVE YOU MY OPINIONS AS WELL AS HIS SAYS MR MUNRO WHO SAYS HE HAS BEEN TALKING TO MR BURKE DAILY AMID IBM'S MOUNTING CRISIS MR BURKE MAKES NO SECRET OF HIS STRONG BIAS IN FAVOR OF DECENTRALIZED MANAGEMENT AT THE HEALTHCARE COMPANY HE USED TO RUN OPERATORS STILL ANSWER THE PHONES JOHNSON & JOHNSON FAMILY OF COMPANIES AN IBM DIRECTOR SINCE 1980 MR BURKE HAS LONG PRODDED THE COMPANY'S CHIEFS TO BE MORE AGGRESSIVE ABOUT PUSHING CONTROL AWAY FROM THE COMPANY'S ARMONK NY HEADQUARTERS I DIDN'T UNDERSTAND HOW THEY COULD OPERATE AS CENTRALIZED AS THEY WERE HE RECALLED IN AN INTERVIEW LAST FALL I USED TO BRING UP QUESTIONS ABOUT IT ALL THE TIME IBM HAS A LONG HISTORY OF TIGHT CONTROL AT THE TOPDATING BACK TO THE HALFCENTURY REIGN OF FOUNDER THOMAS WATSON AND HIS SON MR AKERS TOOK GIANT STEPS TO MAKE IBM'S BUSINESSES MORE AUTONOMOUS BREAKING OUT SEPARATE FINANCIAL STATEMENTS AND CHRISTENING SOME UNITS WITH TRENDY NEW NAMES LIKE PENNANT AND ADSTAR IT'S A TOUGH JOB TO TAKE A COMPANY THAT DID EVERYTHING AS EFFECTIVELY AND AS WELL AS IT DID AS A UNIFIED CENTRALIZED SOMEWHAT BUREAUCRATIC ORGANIZATION AND TRY TO MOVE IT TOWARDS WHERE THE WORLD WAS GOING MR BURKE SAID THIS WEEK SUMMING UP THE AKERS LEGACY AT IBM IF IBM BECOMES A PORTFOLIO OF STANDALONE COMPANIES IT MIGHT BE EASIER FOR AN EXECUTIVE OUTSIDE THE COMPANY OR EVEN OUTSIDE THE COMPUTER INDUSTRY TO SERVE AS CEO MR BURKE THIS WEEK STRONGLY INDICATED HE FAVORS A PERSPECTIVE OUTSIDE THE WORLD OF COMPUTERS THERE'S SOME GREAT ADVANTAGES IN HAVING A FEELING WHERE THE INDUSTRY'S GOING BUT THERE CAN OFTEN BE DISADVANTAGES HE SAID YOU'D HAVE TO BE VERY CAREFUL IN MAKING SURE THAT PART DOESN'T BECOME MORE IMPORTANT THAN OTHER PARTS OTHER EXECUTIVES WARN OF THE RISK OF HANDING IBM TO A LEADER WITHOUT A STRONG TECHNICAL BACKGROUND MICROSOFT CORP CHAIRMAN BILL GATES A FIERCE IBM CRITIC SAYS THAT EVEN A CEO MANAGING IBM AS A PORTFOLIO WOULD FACE TOUGH TECHNICAL QUESTIONS THE STRATEGY OF WHICH GROUPS SHOULD BE CLOSELY COUPLED AND WHAT KIND OF CONTRACTS THEY HAVE WITH EACH OTHER MR BURKE SAID THE COMMITTEE WILL BE INTERVIEWING EXECUTIVES INSIDE IBM WE KNOW THE INSIDE CANDIDATES BUT WE HAVEN'T SPENT THE TIME WITH THEM YET HE SAID IBM PROMOTED THREE VETERAN INSIDERS TO SENIOR VICE PRESIDENT MAKING THEM MORE LIKELY CONTENDERS FOR A ROLE IN THE COMPANY'S NEXT GENERATION OF LEADERS THEY ARE MICHAEL J ATTARDO 51 HEAD OF IBM'S GIANT INTERNAL MICROCHIP BUSINESS NICHOLAS M DONOFRIO 47 CHIEF OF MAINFRAME COMPUTERS AND JOHN M THOMPSON 50 WHO RUNS THE MIDRANGE COMPUTER BUSINESS 9301280046 930128 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG FEW PEOPLE TODAY REALLY NEED MULTIMEDIA COMPUTERS MACHINES THAT PLAY AND RECORD MUSIC SPEECH AND SOUNDS AND SHOW SHORT VIDEO CLIPS AND ANIMATIONS EVEN THE MOST MODERN GRAPHICAL PERSONAL COMPUTERS ARE STILL OVERWHELMINGLY BOUGHT AND USED FOR SUCH PEDESTRIAN TASKS AS WRITING AND LAYING OUT DOCUMENTS ENTERING AND WORKING WITH FIGURES AND MAINTAINING LISTS BUT WHAT IF YOU COULD GET MULTIMEDIA CAPABILITIES BUILT IN FOR 500 TO 1000 EXTRA WHEN YOU BUY A COMPUTER WITHOUT HAVING TO FOOL AROUND WITH ADDING COMPONENTS AND WHAT IF SUCH A PC ALSO CAME WITH A STACK OF MULTIMEDIA SOFTWARE YOU COULD USE IN THOSE LULLS IN YOUR WORK WHAT IF THE MACHINE PLAYED YOUR AUDIO CDS AND LET YOU VIEW HOME PHOTOS ON KODAK'S PHOTO CD DISKS WOULD YOU SHELL OUT THE EXTRA CASH IN THE HOPE THAT PEOPLE WILL ANSWER YES SEVERAL COMPANIES ARE STARTING TO SELL MULTIMEDIA PCS I'VE BEEN EVALUATING TWO OF THEM TANDY'S IBMCOMPATIBLE SENSATION MODEL SOLD AT RADIO SHACK STORES AND OTHER TANDY OUTLETS AND APPLE COMPUTER'S MACINTOSH PERFORMA 600CD SOLD AT SEARS ROEBUCK AND OTHER MASS MERCHANTS WHAT QUALIFIES A COMPUTER AS A MULTIMEDIA MACHINE ONE ESSENTIAL IS A BUILTIN CDROM PLAYER THIS IS A SPECIAL TYPE OF DISK DRIVE ALLOWING THE COMPUTER TO USE DISKS THAT LOOK LIKE AUDIO CDS BUT HOLD SIX TIMES THE AMOUNT OF COMPUTER DATA THAT A TYPICAL HARD DISK STORES TODAY THIS CAPACITY IS CRUCIAL FOR MULTIMEDIA MACHINES BECAUSE DIGITAL AUDIO AND VIDEO FILES ARE HUGE IN ADDITION A MULTIMEDIA COMPUTER MUST BE RELATIVELY SPEEDY WITH AT LEAST FOUR MEGABYTES OF MEMORY IT SHOULD HAVE AN INTERNAL AUDIO SYSTEM ABLE TO PRODUCE MUSIC DIGITIZED VOICES AND OTHER SOUNDS AND A VIDEO SYSTEM THAT CAN DISPLAY AT LEAST 256 COLORS ON THE SCREEN AT A TIME AND PREFERABLY MORE EVEN MOST MACINTOSHES WITHOUT CDROM DRIVES INCLUDE THESE BASIC FEATURES BUT STANDARD IBMCOMPATIBLE PCS OFTEN LACK THEM ON MULTIMEDIA IBMCOMPATIBLES IT'S WISE TO MAKE SURE THE MACHINE AND THE CDROM DRIVE MEET WHAT IS CALLED THE MPC STANDARD SET BY AN INDUSTRY TRADE GROUP IF YOU DON'T FORESEE EVER USING SOFTWARE THAT RELIES ON SOUND OR MOVING PICTURES DON'T SPEND THE EXTRA MONEY FOR A MULTIMEDIA PC BUT SUCH COMPUTERS HAVE BENEFITS EVEN FOR PEOPLE WHO DON'T USE AUDIO AND VIDEO OFTEN FOR ONE THING THE CDROM DRIVE CAN ALSO READ THE MANY NONMULTIMEDIA CDROM DISKS THAT STORE BUSINESS AND RESEARCH MATERIALS IN VAST QUANTITIES SUCH AS NATIONAL PHONE DIRECTORIES THE FULL TEXTS OF PUBLICATIONS CORPORATE FINANCIAL DATA GOVERNMENT DOCUMENTS AND MORE IN ADDITION IF YOU HAVE KIDS THERE'S A GROWING LIST OF TERRIFIC GAME AND EDUCATIONAL SOFTWARE THAT USES ANIMATION VIDEO AND SOUND SO WHICH MULTIMEDIA PC MAKES SENSE BOTH THE TANDY SENSATION AND APPLE PERFORMA 600CD I TRIED WORKED AS ADVERTISED EACH DELIVERS GOOD MULTIMEDIA PERFORMANCE AND EACH CAN BE USED AS A GENERAL BUSINESS OR HOME COMPUTER AS WELL EACH COMES WITH LOTS OF FREE SOFTWARE INCLUDING INTEGRATED PROGRAMS THAT COMBINE WORD PROCESSING SPREADSHEETS AND OTHER FUNCTIONS AND EACH INCLUDES A COMPLETE ENCYCLOPEDIA ON A SINGLE CDROM DISK BOTH MACHINES ALSO FEATURE SPECIAL EASYTOUSE INTERFACESSYSTEMS FOR CONTROLLING THE COMPUTER THAT HAVE BEEN WRITTEN TO BE EVEN SIMPLER THAN THE FAMOUS USERFRIENDLY MACINTOSH INTERFACE OR THE SIMILAR MICROSOFT WINDOWS SYSTEM ON THE TANDY IF YOU MAINLY EXPECT THE KIDS TO USE THE MACHINE GO WITH THE SENSATION IT HAS MORE BELLS AND WHISTLES INCLUDING A BUILTIN CONNECTION FOR MUSIC KEYBOARDS AND JOYSTICKS A BUILTIN MODEM FOR PHONE CONNECTIONS AND EVEN A PROGRAM THAT FUNCTIONS AS A TELEPHONE ANSWERING MACHINE AT 2400 WITH MONITOR IT COSTS 600 LESS THAN THE PERFORMA THE SENSATION ALSO HAS DESIGN TOUCHES MODELED ON AUDIO COMPONENTS SUCH AS FRONTPANEL HEADPHONE PLUGS AND VOLUME CONTROLS BUT THE TANDY IS WEAKER THAN THE MAC AS A FULLSERVICE COMPUTER IT HAS ONLY A 107MEGABYTE HARD DISK MINIMAL FOR A HIGHEND OR MULTIMEDIA PC AND NO ROOM TO ADD A SECOND HARD DISK ITS BUILTIN CDROM DRIVE IS RELATIVELY SLOW AT SEARCHING NONMULTIMEDIA DATA AND CAN'T READ KODAK'S PHOTO CD DISKS WHICH DISPLAY PERSONAL PHOTOS THE SOUND SYSTEM ISN'T COMPATIBLE WITH THE SOCALLED SOUND BLASTER STANDARD THAT DOMINATES PC SOFTWARE BY CONTRAST THE APPLE PERFORMA IS A MUCH MORE ROBUST MACHINE FOR ALLAROUND USE IT COMES WITH A GENEROUS 160MEGABYTE HARD DRIVE AND ADDING ANOTHER HARD DRIVE IS EASY THE PERFORMA HAS MORE STANDARD MEMORY THAN THE SENSATION AND A MORE ADVANCED CDROM DRIVE THAT IS BOTH FASTER AND MORE VERSATILE WITH THE ABILITY TO READ PHOTO CD DISKS AND DISPLAY THEM ON THE COMPUTER MONITOR THOUGH NOT ON YOUR TV IT USES STANDARD MACINTOSH SOFTWARE NOT IBMCOMPATIBLE PROGRAMS BUT COMES OUT OF THE BOX WITH THE ABILITY TO READ DATA DISKS FROM IBM PCS SO THE MAC IS A BETTER CHOICE FOR MULTIPLE USERS IN THE HOME UNLESS RUNNING IBMCOMPATIBLE SOFTWARE PROGRAMS IS AN ABSOLUTE NECESSITY AS ALWAYS WITH APPLE PRODUCTS THERE'S A PREMIUM TO PAY THE PERFORMA COSTS 3000 FULLY EQUIPPED BUT THAT'S ONLY ABOUT 500 MORE THAN A SIMILAR MAC WITHOUT A CDROM DRIVE THE TANDY COSTS ABOUT 1000 MORE THAN AN OTHERWISE SIMILAR NONMULTIMEDIA IBMCOMPATIBLE BOTH MACHINES HAVE BEEN PERIODICALLY SOLD OUT SO THEY MAY BE HARD TO FIND WHICHEVER WAY YOU GO MAKE SURE THE KIDS WEAR HEADPHONES WHEN THEY'RE USING THESE COMPUTERS THEY CAN MAKE A HELL OF A RACKET 9301280045 930128 FINANCING BUSINESS CALDOR CORP CALDOR CORP SAID IT FILED A PUBLIC OFFERING OF 23 MILLION SHARES WITH PROCEEDS GOING TOWARD GENERAL CORPORATE PURPOSES AND THE RETIREMENT OF DEBT CALDOR A NORWALK CONN DISCOUNT RETAILER WILL SELL 15 MILLION OF THE SHARES THE REMAINING SHARES WILL COME FROM SELLING SHAREHOLDERS CALDOR HAS ABOUT 137 MILLION SHARES OUTSTANDING 9301280044 930128 CREDIT RATINGS DR PEPPER/SEVENUP COS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE SUBORDINATED DEBT OF THIS HOLDING COMPANY TO SINGLEB3 FROM CAA AND RAISED THE SENIOR EXCHANGEABLE PREFERRED STOCK RATING OF DR PEPPER/SEVENUP CORP TO B3 FROM CAA ABOUT 690 MILLION OF SECURITIES IS AFFECTED THE RATING CONCERN SAID THE MOVES REFLECT AN IMPROVED CAPITAL STRUCTURE AND CASHFLOW OUTLOOK FOR THE COMPANIES AFTER THE COMPLETION OF DR PEPPER/SEVENUP COS' PUBLIC EQUITY OFFERING AND RELATED DEBT REDUCTION IT SAID HOWEVER THAT THE COMPANY REMAINS HIGHLY LEVERAGED AND THAT ITS DEBT PROTECTION MEASURES ARE SOMEWHAT WEAK DR PEPPER/SEVENUP COS IS THE HOLDING COMPANY OF DR PEPPER/SEVENUP CORP A SOFT DRINK PRODUCER LIBERTE INVESTORS STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATING ON LIBERTE'S 100 MILLION OF SUBORDINATED NOTES TO SINGLEC FROM D FOLLOWING THE COMPANY'S EMERGENCE FROM DEFAULT ON A PAYMENT THE RATING AGENCY SAID THE UPGRADE IS A RESPONSE TO LIBERTE'S PAYMENT LAST MONTH OF ITS SEMIANNUAL INTEREST OBLIGATION DUE DEC 1 LIBERTE A DALLAS REAL ESTATE INVESTMENT TRUST FORMERLY KNOWN AS LOMAS & NETTLETON MORTGAGE INVESTORS MADE THE PAYMENT WITHIN A 30DAY GRACE PERIOD S&P HOWEVER SAID IT PLACED THE RATING ON ITS CREDITWATCH WITH NEGATIVE IMPLICATIONS DUE TO THE COMPANY'S RECENT ANNOUNCEMENT THAT IT IS SEEKING TO RESTRUCTURE THE DEBENTURES WHICH MATURE IN JUNE 9301280043 930128 CREDIT MARKETS TREASURYS RISE ON GOOD DEMAND AT US SALE OF FIVEYEAR NOTES AND REMARKS BY GREENSPAN BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS ROSE SLIGHTLY YESTERDAY AS THE MARKET REACTED TO AN AGGRESSIVELY BID FIVEYEAR NOTE AUCTION AND FAVORABLE REMARKS FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN THE BULK OF THE GAINS WERE CONCENTRATED AMONG SHORTER MATURITIES THE 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT TO 104 17/32 FOR A YIELD OF 724 DOWN FROM 725 ON TUESDAY THE SESSION BEGAN ON A CAUTIOUS NOTE WITH DEALERS EXTREMELY WARY AFTER THE BLUDGEONING THE MARKET TOOK ON TUESDAY FOLLOWING VERY WEAK DEMAND AT THE TWOYEAR NOTE AUCTION HOWEVER DEALERS WERE ABLE TO FIND SOME UNEXPECTED CHEER IN REMARKS FROM MR GREENSPAN WHO WAS TESTIFYING BEFORE THE JOINT ECONOMIC COMMITTEE ON CAPITOL HILL WHILE MR GREENSPAN SAID THE ECONOMY HAS BEEN IMPROVING ANALYSTS NOTED HE DWELT ON NUMEROUS WEAK SPOTS IN THE ECONOMY MR GREENSPAN SAID HE DOUBTED WHETHER THE RECENT INCREASE IN CONSUMER SPENDING COULD BE SUSTAINED WITHOUT INCOME GROWTH AND CONTINUED IMPROVEMENT IN THE LABOR MARKET AT THE SAME TIME THE FED CHAIRMAN SAID THE PROSPECTS FOR CONTINUED JOB GAINS ARE NOT CERTAIN MR GREENSPAN SPENT FIVE MINUTES ON THE POSITIVE AND THE OTHER 10 MINUTES TALKING ABOUT THE PROBLEMS WE STILL HAVE SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE FACT THAT HE DIDN'T SOUND THAT UPBEAT ON THE ECONOMY WAS REASON ENOUGH FOR TRADERS TO REACT POSITIVELY BOND INVESTORS OFTEN RESPOND POSITIVELY TO SIGNS OF ECONOMIC WEAKNESS BECAUSE GROWTH CAN SPUR INFLATION WHICH HURTS THE RETURN ON FIXEDINCOME INVESTMENTS MR GREENSPAN'S COMMENTS PROVIDED A GOOD BACKDROP FOR THE TREASURY'S AUCTION OF 1151 BILLION OF FIVEYEAR NOTES AGGRESSIVE BIDDING BY DEALERS SEEKING TO COVER SHORT SALES OF THE NOTES PUSHED THE FINAL YIELD TO 566 FAR BELOW WHAT MANY UNDERWRITERS HAD ANTICIPATED A SHORT SALE IS WHEN A DEALER SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK LATER OR COVERING THE SHORT AT A LOWER PRICE AND POCKETING THE DIFFERENCE AT AUCTION TIME THE WHENISSUED YIELD OF THE FIVEYEAR NOTES WAS ABOUT 568 A SIGN THAT MOST UNDERWRITERS EXPECTED BIDDING TO BE LESS AGGRESSIVE THAN IT TURNED OUT TO BE ACCORDING TO LAWRENCE N LEUZZI MANAGING DIRECTOR OF FIXED INCOME AT SG WARBURG & CO BECAUSE OF THE POOR PERFORMANCE OF THE TWOYEAR NOTE AUCTION ON TUESDAY MANY DEALERS HAD EXPECTED DEMAND TO BE WEAK AT YESTERDAY'S AUCTION OF FIVEYEAR NOTES DEALERS BID MORE AGGRESSIVELY TO COVER THEIR SHORTS HE SAID BECAUSE THEY EXPECTED OVERALL DEMAND TO BE WEAK ENOUGH TO PUT THE FINAL YIELD AT 568 OR HIGHER THE TREASURY SOLD THE NOTES IN A DUTCH AUCTION IN WHICH ALL SECURITIES ARE AWARDED AT THE HIGHEST ACCEPTED YIELD THE AUCTION IS SUPPOSED TO ENCOURAGE DEALERS TO BID MORE AGGRESSIVELY BECAUSE ALL ACCEPTED BIDS ARE AWARDED AT THE SAME YIELD OR PRICE BUT DEALERS WERE CAUGHT IN A WHIPSAW OF DEMAND THAT PROBABLY RESULTED IN SAVINGS FOR THE TREASURY SINCE THE FINAL YIELD WAS LOWER THAN THEY HAD ANTICIPATED REFLECTING THE HEAVY DEMAND FOR THE FIVEYEAR NOTE THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE ACCEPTED WAS A HIGH 275TO1 AT THE DECEMBER AUCTION THE RATIO WAS 217TO1 AND THE AVERAGE FOR THE FOUR PRIOR DUTCH AUCTIONS WAS 237TO1 IN WHENISSUED TRADING LATE YESTERDAY HOWEVER THE FIVEYEAR NOTE YIELD CLIMBED BACK TO 568 ACCORDING TO JAY GOLDINGER A BOND TRADER IN BEVERLY HILLS CALIF A NUMBER OF DEALERS NOT ONLY BID AGGRESSIVELY TO COVER SHORTS IN THE FIVEYEAR NOTE AUCTION BUT THEY ALSO TRIED TO BUY MORE FIVEYEAR NOTES IN THE HOPE THAT THE FINAL YIELD WOULD BE HIGHER THUS SAVING MONEY SO WHEN THE YIELD CAME IN LOWER THAN ANTICIPATED SAID MR GOLDINGER DEALERS FOUND THEMSELVES HOLDING MORE FIVEYEAR NOTES AT HIGHER PRICES THAN THEY HAD PLANNED AFTER THE AUCTION THEREFORE A NUMBER OF DEALERS BEGAN TO SELL BONDS TO STEM THEIR LOSSES THE BIDDING AT THE SHORT END HELPED PUSH THE TWOYEAR NOTE SHARPLY HIGHER DESPITE THE POOR RECEPTION IT HAD BEEN GIVEN AT TUESDAY'S AUCTION BY THE END OF TRADING YESTERDAY THE TWOYEAR NOTE YIELDED 426 DOWN SHARPLY FROM 433 LATE TUESDAY AND DOWN FROM THE 428 YIELD AT WHICH THE SECURITY WAS AUCTIONED PARTICIPANTS ATTRIBUTED THE SHORTEND GAINS TO THE BELIEF THAT FED CHAIRMAN GREENSPAN'S COMMENTS MEANT THAT SOME FURTHER EASING OF MONETARY POLICY WAS STILL POSSIBLE I THOUGHT HE CERTAINLY LEFT THE DOOR OPEN FOR FURTHER INTEREST RATE CUTS SAID DOUG SCHINDEWOLF A MONEY MARKET ECONOMIST AT SMITH BARNEY HARRIS UPHAM & CO I CAN SEE WHY THE SHORT END TOOK HIS COMMENTS SO WELL MR GREENSPAN WILL TESTIFY AGAIN TODAY THIS TIME BEFORE THE SENATE BUDGET COMMITTEE DEALERS WILL ALSO HAVE TO CONTEND WITH THE FIRST MAJOR ECONOMIC NEWS OF THE WEEK THIS MORNING WHEN THE COMMERCE DEPARTMENT REPORTS ON FOURTHQUARTER GROSS DOMESTIC PRODUCT GROWTH THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR GDP TO POST A 31 RATE OF GROWTH ALSO DUE OUT THIS MORNING WILL BE THE WEEKLY JOBLESS CLAIMS REPORT ECONOMISTS EXPECT CLAIMS TO DROP BY 9000 TO 352000 FOR THE WEEK ENDED JAN 16 INTEREST RATES DROPPED YESTERDAY BUT NOT ENOUGH TO COUNTERACT THE CORPORATE BOND MARKET'S SATURATION ONLY 500 MILLION OF NEW CORPORATE DEBT WAS PRICED YESTERDAY IN SHARP CONTRAST TO PREVIOUS SESSIONS THIS MONTH WHEN THE MARKET EASILY ABSORBED AS MUCH AS 3 BILLION OF NEW DEBT MEANWHILE SOME DEALS PRICED ON TUESDAY WERE MOVING SLOWLY INCLUDING TIME WARNER INC'S OFFERING OF 1 BILLION OF 30YEAR BONDS AND A 400 MILLION OFFERING OF 40YEAR BONDS BY PACIFIC BELL A UNIT O PACIFIC TELESIS GROUP TIME WARNER'S HUGE OFFERING DROPPED IN PRICE IMMEDIATELY AFTER BEING FREED YESTERDAY TO TRADE IN THE SECONDARY MARKET THE BONDS WERE QUOTED AT 99 1/4 TO YIELD 922 OR ABOUT 198 PERCENTAGE POINTS ABOVE THE 30YEAR TREASURY BOND THE ISSUE WAS PRICED TUESDAY AT PAR TO YIELD 915 OR 193 PERCENTAGE POINTS ABOVE TREASURYS BY A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH & CO DEALERS ESTIMATED THAT BETWEEN 600 MILLION AND 800 MILLION OF THE DEAL REMAINED UNSOLD AS OF LATE YESTERDAY INVESTORS APPARENTLY BALKED AT THE DEAL BECAUSE THEY ALREADY HAD ENOUGH TIME WARNER PAPER TUESDAY'S DEAL FOLLOWED A 1 BILLION TWOPART ISSUE OF FIVEYEAR AND SEVENYEAR NOTES PRICED LAST WEEK AND A 1 BILLION ISSUE OF 20YEAR BONDS PRICED TWO WEEKS AGO PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED AFTER A SLOW SESSION SOME MUNI SPECIALISTS SAY A SUPPLY BUILDUP IS HOLDING THE MARKET BACK AMONG ACTIVELY TRADED ISSUES SEATTLE'S 630 SERIES W SEWER REVENUE BONDS OF 2033 CLOSED 1/8 POINT HIGHER AT 99 3/8 TO YIELD 633 PRICES WERE GENERALLY 1/8 LOWER TO 1/4 FIRMER YESTERDAY'S MORE THAN 500 MILLION OF NEW ISSUANCE INCLUDED THE TRINITY RIVER AUTHORITY OF TEXAS' 20985 MILLION OF SERIES 1993 REGIONAL WASTEWATER SYSTEM REVENUE REFUNDING BONDS THE BONDS WERE PRICED BY A DILLON READ & CO GROUP WITH YIELDS RANGING FROM 250 IN 1993 TO 613 IN 2011 AND 2016 THEY ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP ISSUANCE OF TAXEXEMPTS HASN'T BEEN AS HEAVY AS THAT OF CORPORATE BONDS SO FAR THIS YEAR BUT THERE HAVE BEEN A NUMBER OF MUNI SUPPLY SPURTS WITH NEW ISSUES TRICKLING INTO THE MARKET WHILE DEMAND IS SPOTTY THE MARKET MOOD ISN'T BULLISH SECURITIES PRICES OF MORTGAGE SECURITIES FINISHED BARELY CHANGED AS INVESTORS WAIT TO SEE IF THE CURRENT LOW LEVEL OF INTEREST RATES SPURS A FRESH ROUND OF REFINANCING IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR FEBRUARY DELIVERY FINISHED AT 101 10/32 UP 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES WERE BOTH UP 3/32 AT 101 9/32 AND 101 2/32 RESPECTIVELY IN THE PRIMARY MARKET A TOTAL OF ABOUT 13 BILLION IN NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS AND INCREASES TO EXISTING REMICS WAS ANNOUNCED FREDDIE MAC BROUGHT TWO DEALS ONE USED FREDDIE MAC'S 7 MORTGAGE SECURITIES FOR COLLATERAL WHILE THE OTHER USED THE AGENCY'S 15YEAR 65 ISSUES IN THE ASSETBACKED SECTOR A DEAL PRICED BY DEAN WITTER REYNOLDS INC SOLD QUICKLY THE OFFERING WAS A 748 MILLION TWOPART DISCOVER CREDIT CARD PASSTHROUGH DEAL THE DISCOVER CARD IS ISSUED BY SEARS ROEBUCK & CO A 450 MILLION FIVEYEAR CLASS WAS PRICED AT A SPREAD OF 060 PERCENTAGE POINT ABOVE THE WHENISSUED FIVEYEAR TREASURY NOTE AND A 230 MILLION SEVENYEAR CLASS WAS PRICED TO YIELD 100 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED FEB 1 AND MATURE JAN 31 1998 THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9301280042 930128 RTC ACCEPTS BIDS TO BUY 56 BRANCHES OF HOMEFED BANK WASHINGTON THE RESOLUTION TRUST CORP ACCEPTED BIDS FOR 56 HOMEFED BANK BRANCHES FROM FIVE CALIFORNIA FINANCIAL INSTITUTIONS AS PART OF ITS LIQUIDATION OF THE LARGEST THRIFT EVER SEIZED BY THE US GOVERNMENT HOMEFED BASED IN SAN DIEGO AND ONCE THE NATION'S EIGHTH LARGEST THRIFT HAS BEEN OPERATING UNDER SUPERVISION OF THE FEDERAL THRIFT BAILOUT AGENCY SINCE JULY 1992 WHEN A DISASTROUS RECORD OF COMMERCIAL REALESTATE LENDING AND A DEPLETED CAPITAL BASE FORCED REGULATORS TO INTERVENE THE SALES OF THE BRANCHES ALL IN NORTHERN AND CENTRAL CALIFORNIA ARE EXPECTED TO CLOSE WITHIN 30 DAYS PENDING FINAL REGULATORY APPROVAL HOMEFED'S REMAINING 144 BRANCHES WILL CONTINUE TO OPERATE UNDER RTC SUPERVISION THE PURCHASING BANKS WILL ASSUME DEPOSITS TOTALING ABOUT 16 BILLION FOR A COMBINED PREMIUM OF ABOUT 347 MILLION HOME SAVINGS OF AMERICA THE PRINCIPAL THRIFT UNIT OF HF AHMANSON & CO WILL ACQUIRE 24 OF THE BRANCHES HOME SAVINGS BASED IN IRWINDALE SAID IT WILL IMMEDIATELY SELL FIVE BRANCHES TO AMERICAN SAVINGS BANK IN STOCKTON AND ONE TO CLEAR LAKE NATIONAL BANK US BANK A SUBSIDIARY OF US BANCORP PORTLAND ORE WILL TAKE ON 18 BRANCHES AND SELL TWO OF THOSE TO HUMBOLDT BANK IN EUREKA IN ADDITION BAY VIEW FEDERAL BANK A UNIT OF BAY VIEW CAPITAL CORP SAN MATEO GETS SIX BRANCHES A UNIT OF FIRST INTERSTATE BANCORP LOS ANGELES GETS FIVE AND WATSONVILLE FEDERAL SAVINGS & LOAN ASSOCIATION GETS THREE 9301280041 930128 BORDEN INC POSTS 34 DROP IN NET FOR FOURTH PERIOD BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC STRUGGLING THROUGH AN AMBITIOUS RESTRUCTURING EFFORT REPORTED A 34 PLUNGE IN FOURTHQUARTER NET INCOME THE CONSUMER PRODUCTS COMPANY KNOWN FOR ITS SIZABLE PORTFOLIO OF DAIRY AND OTHER GROCERY BRANDS REPORTED NET INCOME OF 284 MILLION OR 20 CENTS A SHARE COMPARED WITH 431 MILLION OR 29 CENTS A SHARE IN THE YEAREARLIER PERIOD BUT PROFIT WOULD HAVE PLUNGED 67 IN THE QUARTER WERE IT NOT FOR A 44 MILLION RESTRUCTURING CHARGE TAKEN IN THE 1991 QUARTER SALES WERE OFF 11 AT 182 BILLION WHILE POOR QUARTERLY PERFORMANCES AREN'T NEW FOR BORDEN ANALYSTS WERE UNPLEASANTLY SURPRISED BY QUARTERLY LOSSES IN THE DAIRY DIVISION THE FIRST IN MORE THAN A DECADE BORDEN WHICH IS BEST KNOWN FOR SUCH PRODUCTS AS EAGLE SWEETENED CONDENSED MILK AND CREMORA CREAMER BLAMED THE LOSS ON INCREASED RAW MILK COSTS AND HIGHER MARKETING EXPENSES RELATED TO A NEW ADVERTISING CAMPAIGN THE COMPANY DIDN'T QUANTIFY THE DIVISION LOSS AND SAID ANALYSTS' ESTIMATES OF AROUND 20 MILLION WERE HIGH THE DIVISION ALSO WAS HAMMERED BY PRICE WARS IN THE LARGE TEXAS MARKET AS WELL AS COSTS RELATED TO ITS CONSOLIDATION EFFORTS CLEARLY RESTRUCTURING EFFORTS ARE IMPACTING OPERATIONS SAYS NOMI GHEZ ANALYST AT GOLDMAN SACHS & CO THERE'S SOME CHAOS GOING ON IN THERE SALES IN THE DIVISION SANK 22 TO 3566 MILLION THE NEWS AT BORDEN'S OTHER DIVISIONS WASN'T GOOD EITHER GROCERY PRODUCTS THE LARGEST DIVISION REPORTED SIGNIFICANTLY LOWER OPERATING PROFIT THE COMPANY'S CHEESE BRANDS HAVE SUFFERED FROM AGGRESSIVE PRICE CUTS TAKEN BY LARGER RIVAL KRAFT GENERAL FOODS CORP WHILE BORDEN'S NO 1 SELLING CREAMETTE PASTAS WERE HURT BY AGGRESSIVE COMPETITION OPERATING PROFIT IN THE SNACKS AND INTERNATIONAL CONSUMER PRODUCTS DEPARTMENTS WAS SUBSTANTIALLY LOWER MOSTLY BECAUSE OF INTENSE PRICE COMPETITION EVEN THOSE WHO HAVE BECOME IMPATIENT WITH BORDEN'S PROTRACTED TURNAROUND ATTEMPTS SAY THE FOURTH QUARTER MAY HAVE BEEN NECESSARY MEDICINE FOR ANY LONGTERM IMPROVEMENTS SOME OF THE RESULTS WERE SELFINFLICTED AND A LOT OF IT IS DESIGNED TO JUMPSTART THE BUSINESS SAYS JOHN MCMILLIN OF PRUDENTIAL SECURITIES INC BUT THIS QUARTER DOESN'T SHOW YOU ANY LIGHT AT THE END OF THE TUNNEL FOR THE FULL YEAR BORDEN POSTED A NET LOSS OF 4396 MILLION OR 307 A SHARE REFLECTING A 450 MILLION AFTERTAX RESERVE TO COVER RESTRUCTURING COSTS YEAREARLIER NET INCOME TOTALED 2949 MILLION OR 2 A SHARE SALES WERE DOWN 13 TO 714 BILLION IN NEW YORK STOCK EXCHANGE TRADING BORDEN SHARES ROSE 125 CENTS TO 27375 9301280040 930128 WHO'S NEWS WANG LABORATORIES INC WANG LABORATORIES INC LOWELL MASS JOHN MILLERICK 44YEAROLD DEPUTY CONTROLLER WAS NAMED TO THE NEW POST OF VICE PRESIDENT AND CORPORATE CONTROLLER OF THIS COMPUTER MAKER 9301280039 930128 WHO'S NEWS RELIANCE ELECTRIC CO RELIANCE ELECTRIC CO CLEVELAND JOHN D HUTSON 60YEAROLD TREASURER OF THIS MAKER OF INDUSTRIAL AND TELECOMMUNICATIONS EQUIPMENT WAS NAMED A VICE PRESIDENT JAMES GUSEILO 46 WAS NAMED VICE PRESIDENT AND CONTROLLER NEW POSTS ROBERT L MATEJKA 50 WAS NAMED ASSISTANT CONTROLLER ALSO A NEW POSITION ALL PROMOTIONS TAKE EFFECT MARCH 1 MESSRS GUSEILO AND MATEJKA ARE ASSUMING FINANCIAL AND ACCOUNTING RESPONSIBILITIES PREVIOUSLY HELD BY CHIEF FINANCIAL OFFICER KEITH C MOORE JR 55 WHO IS RETIRING FEB 28 RELIANCE SAID IT WON'T NAME A NEW CHIEF FINANCIAL OFFICER 9301280038 930128 LEISURE & ARTS TV ABUSIVE PRIESTS A MURDEROUS HUSBAND SARAH' PART II BY DOROTHY RABINOWITZ THIS INVESTIGATIVE REPORT WITH BILL KURTIS CONCERNS PRIESTS WHO COMMIT CHILD SEX ABUSE DESPITE THE HOTBREATHING TITLE AND SEMILURID INTRODUCTORY GRAPHICS THIS SURVEY WHOSE PARTICIPANTS INCLUDE CARDINAL BERNARDIN OF CHICAGO FATHER ANDREW GREELEY AND SUCH IS ALMOST SCHOLARLY IN ITS SERIOUSNESS COMPARED WITH THE USUAL TV SORTIE INTO THIS SUBJECT ITS REFLECTIVENESS DOESN'T DIMINISH ITS OVERALL FORCE NOR DOES THE FILM SHRINK FROM SOME UNUSUALLY FRANK CONJECTURES FROM CHURCH AND LAY OBSERVERS ABOUT THE ROOTS OF THE PROBLEM AND THE PREVALENCE OF HOMOSEXUALITY AMONG PRIESTS HOME BOX OFFICE HAS BEEN EARNING A REPUTATION FOR GOOD MOVIES BUT THIS FILM STARRING AN EXCELLENT RON SILVER ISN'T ONE OF THEM IT DOES HAVE A PROMISING PREMISE AN UPSTANDING AMERICAN COUPLE IN MEXICO ON BUSINESS ACCIDENTALLY KILL A MAN APPARENTLY HOWEVER THE FILMMAKERS CHESTNUT HILL PRODUCTIONS DECIDED THAT A MOVIE FOCUSING ON THE COMPETING CLAIMS OF PRAGMATISM AND MORAL CONSCIENCE JUST WASN'T DRAMATIC ENOUGH SO THEY PROCEEDED TO TURN THE PROJECT INTO A WITLESS HORROR FILM AFTER THE ACCIDENT RUTGER HAUER ARRIVES OUT OF NOWHERE EXUDING MENACE WITH ALL THE SUBTLETY OF A DRAY HORSE AFTER PRANCING ABOUT FOR A TIME AND A VERY LONG TIME IT SEEMS TOO WITH NOSTRILS FLARED MR HAUER TURNS NASTY IN EARNEST AND WE ARE OFF INTO BLOODANDGORE STRUGGLES OF NUMBING DULLNESS AND A FILM ABOUT CONSCIENCE ENDS UP MAKING FRIDAY THE 13TH LOOK LIKE HAMLET IT DOESN'T REQUIRE A SPECIAL INTEREST IN UNIONS TO ENJOY THIS FULLBODIED DOCUMENTARY BY CHARLOTTE MITCHELL ZWERIN ABOUT WALTER REUTHER FATHER OF THE UNITED AUTO WORKERS UNION AND ONE OF THE CENTURY'S REMARKABLE LABOR LEADERS THIS STORY BEGINS IN 1946 WHEN THE VICTORIOUS RUSSIANS MOVED NAZI SCIENTISTS TO THE SOVIET UNION WHERE THEY WOULD WORK ON THE THE SOVIETS' ALREADY ADVANCED NUCLEAR PROGRAM AND LIVE VERY PRIVILEGED LIVES THE GERMANS REPORT THAT HITLER AND HIS CIRCLE DIDN'T ENCOURAGE ATOMIC RESEARCH BECAUSE IT WAS TOO ABSTRACT FOR THEM AND CONSIDERED JEWISH PHYSICS THE SCIENTISTS HAVE HIGHLY INTERESTING THINGS TO TELL ESPECIALLY ABOUT THE BUILDING OF THE SOVIET BOMB AND THE CONTRIBUTIONS OF WESTERN SPIES NOT CRUCIAL THEY SAY THIS IS ABOUT STEVE WHO KILLS TWO OF HIS FOUR WIVES AND HIS MOTHER SOUNDS LIKE AN INTERESTING STORY DOESN'T IT WELL IT ISN'T BUT THAT'S THE MAGIC OF THE MADEFORTV MOVIE BUSINESS WHERE TALENTS WITH A FLAIR FOR TURNING GOLD INTO LEAD ABOUND ABOUNDING HERE TOO ARE SOME FAMILIAR TV FACES AS STEVE HARRY HAMLIN LATE OF LA LAW DROOPS CONFUSEDLY AROUND FLASHING HIS PECTORALS WHILE FAITH FORD THE CORKY OF MURPHY BROWN REPRISES HER DIMWIT ROLE AS ONE OF THE SHORTLIVED WIVES HELEN SHAVER PLAYS A SLIGHTLY LESS ADDLED FORMER SPOUSE WHO UNCOVERS STEVE'S MURDEROUS PLOT TOO SOON MORGAN HILL FILMS AND HEARST ENTERTAINMENT PRODUCTIONS PRODUCED THIS FILM WHICH WILL IN FACT HAVE A LOT OF VIEWERS WISHING THAT STEVE HAD KNOCKED OFF ALL FOUR OF HIS WIVES ALONG WITH EVERYONE ELSE IN THIS STORY THIS NEW HALLMARK HALL OF FAME PRESENTATION A SEQUEL TO SARAH PLAIN AND TALL ABOUT A NEW ENGLAND WOMAN TRANSPLANTED TO KANSAS IS THE SORT OF WORK THAT COULD GIVE SEQUELS A GOOD NAME ITS LYRICISM MAY BE STUDIED ITS SWEETNESS UNBRIDLED BUT THE THING WORKS AND NOT JUST PASSABLY GLOWING PERFORMANCES BY GLENN CLOSE AND CHRISTOPHER WALKEN DO THE TRICK FOR THE MOST PART THEN THERE ARE THE SETTINGS JOSEPH SARGENT'S DIRECTION AND SCENES LIKE THE BIRTHDAY PARTY WITH DANCING ON THE DROUGHTPARCHED KANSAS LAND 9301280037 930128 WHO'S NEWS CYPRUS MINERALS CO CYPRUS MINERALS CO DENVER JEFFREY G CLEVENGER 43 WAS NAMED PRESIDENT OF CYPRUS COPPER CO AN OPERATING UNIT OF THIS MINING COMPANY SUCCEEDING F STEVEN MOONEY 58 WHO ELECTED TO TAKE EARLY RETIREMENT MR CLEVENGER FORMER CYPRUS COPPER SENIOR VICE PRESIDENT WAS ALSO ELECTED A SENIOR VICE PRESIDENT AND AN OFFICER OF THE PARENT COMPANY 9301280036 930128 UNIT OF DQE TO REDEEM BONDS PITTSBURGH DUQUESNE LIGHT CO A UNIT OF DQE SAID IT WILL REDEEM ON MARCH 1 TWO SERIES OF FIRST MORTGAGE BONDS TOTALING 787 MILLION THE COMPANY SAID IT WILL REDEEM ALL BONDS OUTSTANDING OF THE 9 1/2 SERIES DUE MARCH 1 2005 AT 10372 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT WILL ALSO REDEEM ALL BONDS OUTSTANDING OF THE 8 3/4 SERIES DUE MARCH 1 2000 AT 10176 OF THE PRINCIPAL AMOUNT PLUS INTEREST DQE IS AN ELECTRIC UTILITY HOLDING COMPANY 9301280035 930128 WHO'S NEWS CIVIC BANCORP CIVIC BANCORP OAKLAND CALIF HERBERT C FOSTER 53 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CIVIC BANCORP AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CIVICBANK OF COMMERCE A UNIT MR FOSTER SUCCEEDS GUY R HENSHAW WHO WILL RESIGN AS PRESIDENT OF CIVIC BANCORP IN MARCH AT CIVICBANK HE SUCCEEDS CLAUDE B HUTCHISON JR WHO RESIGNED IN JULY 9301280034 930128 WEDNESDAY'S MARKETS DOW EASES 756 POINTS BONDS GAIN OTC PROFITTAKING DAMPS STOCK PRICES DOLLAR STRENGTHENS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PROFITTAKERS HAMMERED HIGHFLYING OVERTHECOUNTER ISSUES PUTTING A DAMPER ON THE ENTIRE STOCK MARKET BOND PRICES ROSE MODESTLY AND THE DOLLAR ROSE WE'VE BEEN WARNING PEOPLE THAT THE MARKET HAS GOTTEN VERY FROTHY AND MOST OF THE FROTH IS CONCENTRATED IN SMALL STOCKS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THOUGH SMALL STOCKS BORE THE BRUNT OF THE SELLOFF MR SOLLOWAY SAID THE OVERALL MARKET HAS BEEN RIPE FOR A CORRECTION FOR SOME TIME BUT HE ADDED IT WAS TOO EARLY TO SAY WHETHER YESTERDAY'S SLUMP MARKED THE TURNING POINT WE HAVE TO HAVE A CORRECTION OF SOME SIGNIFICANCE AND DURATION NOT JUST A ONEDAY WONDER BEFORE THE MARKET WILL BE READY TO MAKE ANOTHER UPSURGE HE SAID ANALYSTS SAID THE HEAVY TRADING VOLUME IN RECENT WEEKS REFLECTS INVESTORS' SWIFT SHIFTS FROM ONE STOCK SECTOR TO ANOTHER JUST THIS WEEK OILS WERE THE DARLINGS MONDAY AND THE DOGS YESTERDAY LIKEWISE AIRLINE STOCKS WERE BATTERED EARLY IN THE WEEK AS OILS IMPROVED AND WERE AMONG THE TOP PERFORMERS YESTERDAY INSTITUTIONS ARE JUST SWAPPING MONEY AMONG SECTORS SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA THE TOUGHEST PART IS KNOWING WHERE THE NEXT ROTATION IS GOING TO BE JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO SAID THAT FOR SOME INVESTORS YESTERDAY'S SELLOFF CREATES A BUYING OPPORTUNITY AT LEAST UNTIL A PROLONGED DOWNTURN THAT HE PREDICTS WILL BEGIN IN THE SPRING PEOPLE WITH A SHORTTERM FOCUS COULD TAKE ADVANTAGE OF A DIP LIKE THIS HE SAID BUT I CAN'T EMPHASIZE ENOUGH THAT IT HAS TO BE A SHORTTERM FOCUS BECAUSE BY MARCH OR APRIL YOU'LL WANT TO HAVE A HIGH CASH POSITION ANALYSTS ALSO NOTED THAT STOCKS GOT LITTLE SUPPORT FROM THE BOND MARKET AS THE RALLY IN BOND PRICES SHOWED FURTHER SIGNS OF COOLING MR SOLLOWAY HAS REDUCED HIS BOND HOLDINGS TO 25 OF HIS PORTFOLIO FROM 30 AND BOOSTED HIS CASH POSITION TO 20 FROM 15 HIS STOCK ALLOCATION REMAINS AT 55 WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 050 TO 9217 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2769 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1160 ISSUES FELL AND 719 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/8 POINT OR UNDER 125 FOR EACH 1000 FACE AMOUNT TO YIELD 724 THE DOLLAR GAINED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15865 MARKS AND 12410 YEN COMPARED WITH 15764 MARKS AND 12356 YEN TUESDAY 9301280033 930128 WHO'S NEWS DOMINO'S PIZZA INC DOMINO'S PIZZA INC ANN ARBOR MICH LAWRENCE GORDON WAS APPOINTED CHIEF OPERATING OFFICER OF THIS BAKER OF HOMEDELIVERY PIZZAS GORDON A FORMER CHAIRMAN OF YORX INTERNATIONAL AND POLYTECH NETTING SUCCEEDS DAVID BLACK WHO LEFT THE COMPANY IN DECEMBER 1991 SINCE BLACK'S DEPARTURE THE COMPANY'S CHIEF EXECUTIVE THOMAS A MONAGHAN HAS ALSO SERVED AS CHIEF OPERATING OFFICER 9301280032 930128 ENTERPRISE SHAMAN'S IPO SUCCESS SETS EXAMPLE FOR BIOTECH FIRMS STARTUP FINDS MAJOR ALLIES AS IT COMBS TROPICAL FORESTS FOR NEW MEDICINES BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL AT FIRST GLANCE SHAMAN PHARMACEUTICALS INC LOOKS LIKE A DIM PROSPECT THE LOSSRIDDEN STARTUP COMPANY IS YEARS AWAY FROM PRODUCING A COMMERCIALLY VIABLE DRUG SOME INVESTORS DON'T MIND IN FACT THE PUBLIC WAS SO KEEN FOR SHAMAN SHARES THAT THE SAN CARLOS CALIF CONCERN HAD TO BOOST THE SIZE OF ITS INITIAL PUBLIC OFFERING YESTERDAY THE SMALL COMPANY FOUNDED IN 1989 WANTS TO DEVELOP DRUGS FROM TROPICAL PLANTS THAT APPEAR TO BE MEDICALLY EFFECTIVE AMONG INDIGENOUS PEOPLES OF LATIN AMERICA AFRICA AND SOUTHEAST ASIA THE BUSINESS HAS ELEMENTS THAT SEEM TO STRIKE A CHORD WITH INVESTORS ENVIRONMENTALISM HEALTH CARE AND EVEN EXOTIC ADVENTURE SHAMAN'S EARLY SUCCESS AMONG INVESTORS MAY OFFER POINTERS FOR UPSTART ENTERPRISES EAGER TO STAND OUT FROM THE CROWD WITH THEIR INITIAL PUBLIC OFFERINGS THREE BIOTECHNOLOGY COMPANIES INCLUDING SHAMAN HAVE GONE PUBLIC THIS WEEK AND 16 OTHERS PLAN TO GO PUBLIC DURING THE NEXT TWO MONTHS SAYS SECURITIES DATA CO YESTERDAY UNDERWRITERS INCREASED THE SIZE OF SHAMAN'S PUBLIC OFFERING TO THREE MILLION SHARES FROM 25 MILLION AND BOOSTED THE PRICE TO 15 FROM THE ORIGINALLY PLANNED 14 THE SHARES TRADING OVERTHECOUNTER JUMPED TO NEARLY 17 BEFORE SETTLING BACK TO 14 AMID A STEEP DECLINE GENERALLY IN BIOTECHNOLOGY STOCK PRICES SHAMAN HAS WOOED SOME SAVVY VETERANS OF BIOTECH INVESTING NOT ONLY BY PUSHING FASHIONABLE THEMES BUT ALSO BY LINING UP BIG ALLIES AND DEVELOPING PRODUCTS WITH POTENTIALLY LARGE BUT SPECIALIZED MARKETS THERE'S A LOT OF EXCITEMENT ABOUT SHAMAN SAYS JOHN KAWESKE A DENVER MANAGER OF GLOBAL HEALTH SCIENCES FUND AND FINANCIAL STRATEGIC HEALTH SCIENCES PORTFOLIO EACH FUND BOUGHT 1 MILLION WORTH OF SHAMAN PREFERRED STOCK IN A RECENT PRIVATE PLACEMENT EVEN SOME USUALLY SKEPTICAL INVESTORS ARE SOMEWHAT INTRIGUED BY SHAMAN'S APPROACH IF WE'RE GOING TO TALK ABOUT SAVING THE RAIN FOREST WE MIGHT AS WELL ALSO USE IT SAYS JAMES MCCAMANT EDITOR OF THE MEDICAL TECHNOLOGY STOCK LETTER OF BERKELEY CALIF BUT MR MCCAMANT DIDN'T ADVISE HIS READERS TO INVEST IN SHAMAN SHARES BECAUSE HE EXPECTS THE STOCK TO FALL IN PRICE ONCE THE INITIAL EUPHORIA FADES SHAMAN GAINED CREDIBILITY BY ENLISTING TWO BIG US ALLIES AND AN ITALIAN COMPANY ACCORDING TO THE COMPANY'S OFFERING PROSPECTUS ELI LILLY & CO A BIG DRUG MAKER AGREED TO PUMP 4 MILLION INTO SHAMAN TO FIND TREATMENTS FOR FUNGAL INFECTIONS ITALY'S INVERNI DELLA BEFFA SPA A MAKER OF PLANTDERIVED DRUGS INVESTED 500000 IN SHAMAN AND SIGNED A LICENSING AND MANUFACTURING AGREEMENT WITH THE YOUNG COMPANY AND MERCK & CO ANOTHER HUGE PHARMACEUTICAL CONCERN HAS AGREED TO SCREEN COMPOUNDS FOUND BY SHAMAN FOR TREATMENTS FOR DIABETES AND ANALGESIA THOSE ALLIANCES MAY HAVE HELPED ALLAY FEARS AMONG INVESTORS CONCERNED ABOUT SHAMAN'S 6 MILLION LOSS IN 1992 AND THE EXPECTED LONG WAIT AT LEAST THREE YEARS UNTIL ITS TWO MOST PROMISING DRUGS REACH THE US MARKET SHAMAN SAYS IT'S TESTING TWO DRUGS IN HUMANS AIMED AT VEXING AILMENTS FOR WHICH FEW TREATMENTS ARE AVAILABLE ONE DRUG CALLED PROVIR IS AN ORAL TREATMENT FOR RESPIRATORY VIRAL INFECTIONS THAT ARE PARTICULARLY PREVALENT AMONG CHILDREN VIREND IS A TOPICAL TREATMENT FOR HERPES MR KAWESKE ESTIMATES THAT THE WORLDWIDE MARKET FOR BOTH DRUGS COULD BE 500 MILLION A YEAR BY THE END OF 1996 WHEN SHAMAN HOPES TO HAVE BOTH PRODUCTS APPROVED FOR SALE THE FUND MANAGER INCREASED HIS SHAMAN POSITION BY 30 IN THE IPO WHICH WAS MANAGED BY SG WARBURG SECURITIES AND FIRST BOSTON CORP SHAMAN THE NAME MEANS MEDICINE MAN IN NORTHEAST ASIAN CULTURES EVOKES IMAGES OF INDIANA JONESTURNEDJONAS SALK AND THE RECENT MOVIE MEDICINE MAN THE FIRM'S DOCTORS AND BOTANISTS COMB THE WORLD'S RAIN FORESTS FOR POTENTIAL BLOCKBUSTER DRUGS WHEN THEY FIRST STARTED TALKING ABOUT GOING DOWN AND TALKING TO WITCH DOCTORS MY SENSE WAS THIS HAD TO BE A JOKE SAYS DOUG FOREMAN MANAGER OF THE PUTNAM OTC EMERGING GROWTH FUND IN BOSTON SHAMAN'S OFFERING PROSPECTUS SPORTS A PHOTOGRAPH OF A NATIVE HEALER HIS FACE STREAKED WITH WHITE PAINT AS HE AND A SHAMAN EMPLOYEE SCREEN TROPICAL PLANTS THE COMPANY DISPATCHES A NETWORK OF ETHNOBOTANISTS WHO STUDY HOW NATIVES USE PLANTS AND DOCTORS WHO SEEK OUT PLANT REMEDIES LONG USED BY NATIVE PEOPLES PHYSICIANS HELP TO DIAGNOSE ILLNESSES THAT NATIVES TREAT WITH SUCH PLANTS WE INCREASE THE PROBABILITY THAT PLANTS WILL BE BOTH EFFECTIVE AND SAFE BECAUSE THEY'VE BEEN USED FOR CENTURIES BY NATIVE PEOPLES SAYS GARY L FISCHER SHAMAN'S CHIEF FINANCIAL OFFICER NOT THE FIRST SHAMAN IS HARDLY THE FIRST DRUG COMPANY TO RELY ON NATURE ABOUT 25 OF TODAY'S MEDICINES COME FROM PLANTS LILLY ESTIMATES EVEN THOUGH LESS THAN 1 OF MORE THAN 250000 KNOWN PLANT SPECIES HAVE BEEN TESTED FOR MEDICAL USES THERE NOW IS RENEWED INTEREST IN PLANTDERIVED MEDICINES SUCH AS TAXOL AN ANTICANCER COMPOUND DERIVED FROM THE BARK AND NEEDLES OF THE PACIFIC YEW TREE RESEARCHERS AT THE NATIONAL INSTITUTES OF HEALTH MERCK GLAXO HOLDINGS PLC AND SMITHKLINE BEECHAM PLC ARE PART OF A GROWING CROWD SCOURING THE RAIN FORESTS FOR POTENTIAL DRUGS SHAMAN IS ONE OF THE FEW DRUG COMPANIES THAT FOCUSES SOLELY ON SEEKING POTENTIAL MEDICINES AMONG TROPICAL FORESTS PUTNAM'S MR FOREMAN SAYS THAT LISA A CONTE SHAMAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND MICHAEL S TEMPESTA ITS VICE PRESIDENT OF RESEARCH PERSUADED HIM THAT SHAMAN HAD FOUND A WAY TO ACCELERATE DRUG DEVELOPMENT BY UNRAVELING THE MYSTERIES OF PLANTS LONG USED TO TREAT RAIN FOREST DWELLERS THEY'RE NOT APPRECIABLY DIFFERENT FROM ANY OTHER BIOTECH COMPANY MR FOREMAN SAYS BUT THEIR APPROACH TO DRUG DISCOVERY IS DIFFERENT WITH 419 MILLION RAISED IN YESTERDAY'S STOCK OFFERING SHAMAN SAYS IT WILL EXPAND INTO A LARGER HEADQUARTERS THIS SPRING AND INTENSIFY DEVELOPMENT OF ITS DRUGS THE COMPANY'S SUCCESS IS FAR FROM ASSURED HOWEVER IT FACES COMPETITION AS WELL AS POLITICAL AND REGULATORY UNCERTAINTY IN RAIN FOREST COUNTRIES AND AT HOME NEVERTHELESS INVESTORS PROBABLY WON'T SOON FORGET SHAMAN'S UNUSUAL BUSINESS NICHE OBSERVES MR FOREMAN IT REMINDS ME OF AN ENVIRONMENTAL BEN & JERRY'S IN THE PHARMACEUTICAL BUSINESS 9301280031 930128 WHO'S NEWS LUKENS INC LUKENS INC COATESVILLE PA MICHAEL O ALEXANDER 52 YEARS OLD DIRECTOR OF THE INTERNATIONAL FORUM AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL OF BUSINESS WAS NAMED A DIRECTOR OF THIS STEEL COMPANY EXPANDING THE BOARD TO 12 MEMBERS 9301280030 930128 POLITICS & POLICY CLINTON AGREES TO COMPROMISE ON MILITARY BAN CONGRESS WILL GET TO VOTE ON A PROPOSAL TO HALT BARRING OF HOMOSEXUALS BY THOMAS E RICKS AND JILL ABRAMSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AGREED TO A COMPROMISE THAT IT HOPES WILL FEND OFF AN EMBARRASSING CONGRESSIONAL VOTE AGAINST ITS PLANS TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY UNDER THE COMPROMISE MUCH OF THE WHITE HOUSE'S PLAN TO LIFT THE BAN REMAINS INTACT BUT BEFORE ISSUING AN EXECUTIVE ORDER LIFTING THE BAN THE PRESIDENT WILL PRESENT A PROPOSAL THAT CONGRESS CAN VOTE ON DEFENSE SECRETARY LES ASPIN SAID BY AGREEING TO THIS COMPROMISE THE ADMINISTRATION APPEARS TO HAVE AT LEAST TEMPERED THE OPPOSITION OF SEN SAM NUNN TO LIFTING THE BAN BUT THE ADMINISTRATION ALSO NEEDS THE HELP OF GEN COLIN POWELL CHAIRMAN OF THE JOINT CHIEFS OF STAFF WHO VIGOROUSLY OPPOSES LIFTING THE BAN GEN POWELL COULDN'T BE REACHED TO COMMENT LAST NIGHT BUT A PENTAGON OFFICIAL ARGUED THAT THE COMPROMISE STILL APPEARS TO BE PROBLEMATIC MOST NOTABLY HE SAID IT COULD CREATE A SITUATION UNDER WHICH HOMOSEXUALS WERE PERMITTED IN THE MILITARY ONLY TO SEE CONGRESS ULTIMATELY REAFFIRM THE BAN SOME PEOPLE FAMILIAR WITH THE COMPROMISE DESCRIBED IT AS A RETREAT WHILE OTHERS ARGUED THAT IT SIMPLY IS A HAZIER STATEMENT OF THE ADMINISTRATION'S ORIGINAL PLAN MEETING AT THE WHITE HOUSE LAST NIGHT WITH SEN NUNN AND OTHER MEMBERS OF THE SENATE ARMED SERVICES COMMITTEE PRESIDENT CLINTON MADE IT CLEAR THAT HE CONTINUES TO BELIEVE THE BAN SHOULD BE LIFTED ACCORDING TO PEOPLE WHO ATTENDED THE DISCUSSION I'M HOPEFUL WE CAN WORK IT OUT IT'S NOT A DONE DEAL SAID SEN NUNN WE DON'T HAVE ANYTHING IN WRITING AT THIS POINT AN ADMINISTRATION OFFICIAL CONTENDED THAT THE WHITE HOUSE NOW HAS A REASONABLE CHANCE OF SIDESTEPPING A DIRECT CONFRONTATION ON THE ISSUE WHICH HAS ALREADY PROVEN A DISTRACTION FROM MR CLINTON'S CENTRAL ECONOMIC AGENDA THE ANNOUNCEMENT OF THE COMPROMISE COULD COME AS EARLY AS TODAY BUT INTERNAL CONFUSION ABOUT SOME OF ITS DETAILS COULD DELAY THAT IN KEEPING WITH THE ADMINISTRATION'S ORIGINAL PLAN DEVELOPED THIS MONTH THE ANNOUNCEMENT WILL DIRECT THE MILITARY TO STOP ASKING RECRUITS ABOUT THEIR SEXUAL ORIENTATION THE PRESIDENT ALSO IS EXPECTED TO DIRECT THE MILITARY TO STOP PROCEEDINGS TO DISMISS HOMOSEXUALS BUT THE THIRD AND MOST SIGNIFICANT STEP OF THE EARLIER PLAN WAS MODIFIED ORIGINALLY THE PRESIDENT PLANNED TO GIVE THE DEFENSE SECRETARY A JULY 15 DEADLINE TO DRAFT AN EXECUTIVE ORDER LIFTING THE BAN THE WHITE HOUSE NOW IS EXPECTED TO INDICATE THAT IT HOPES TO ISSUE THE ORDER IN SIX MONTHS BUT THAT IT WILL REFRAIN FROM TAKING ANY DEFINITIVE ACTION UNTIL THEN EMERGING FROM THE TWOHOUR MEETING SEN NUNN CHAIRMAN OF THE ARMED SERVICES PANEL SAID HE WANTED TO ENSURE A SITUATION IN WHICH NEITHER THE CONGRESS NOR THE WHITE HOUSE WOULD ACT WITH FINALITY NOW HE SAID WE BOTH HAVE TIME DAVID MIXNER A LONGTIME FRIEND OF MR CLINTON'S WHO ADVISED THE PRESIDENT'S CAMPAIGN ON GAY ISSUES SAID THAT ALL THAT MATTERS IS WHETHER THE PROCESS LEADS TO EXECUTIVE ACTION IF THERE'S AN EXECUTIVE ORDER AT THE END OF IT IT'S REASONABLE HE SAID IF THERE'S NOT IT'S UNREASONABLE IF NO EXECUTIVE ORDER IS ISSUED HOMOSEXUALS WILL FEEL BETRAYED HE SAID THERE WAS STILL MUCH CONFUSION ABOUT THE DETAILS OF HOW THE MILITARY SHOULD DEAL WITH HOMOSEXUALS DURING THE NEXT SIX MONTHS IN THE LEGAL TWILIGHT ZONE BETWEEN THE WHITE HOUSE'S ANNOUNCEMENT AND THE EXPECTED EXECUTIVE ORDER LAWYERS WERE WORKING AT THE WHITE HOUSE LAST NIGHT FOR EXAMPLE TO CONSIDER HOW LEGAL PROCEEDINGS AND MILITARY DISMISALS AGAINST HOMOSEXUALS MIGHT BE STOPPED WHILE MILITARY REGULATIONS AGAINST HOMOSEXUALITY REMAIN IN EFFECT MR ASPIN CONCEDED THAT DURING THE INTERIM SIXMONTH PERIOD THE MILITARY PROBABLY CAN'T CONTINUE PROSECUTING HOMOSEXUALS TO EXPEL THEM FROM THE SERVICES THE CONTROVERSY HAS BECOME THE GALVANIZING ISSUE FOR THE RIGHT TOUCHING OFF A GRASSROOTS PRAIRIE FIRE BUT UNLIKE THE ZOE BAIRD AFFAIR WHICH INSPIRED A SPONTANEOUS OUTPOURING FROM THE PUBLIC THIS PROTEST IS WELLORGANIZED CONSERVATIVE AND CHRISTIAN GROUPS HAVE INSTRUCTED THEIR MEMBERS TO JAM THE SWITCHBOARDS AT THE WHITE HOUSE CONGRESS AND THE PENTAGON WE'RE THE ONES THAT SHUT DOWN THE PHONE LINES AT THE CAPITOL SAYS THE REV LOUIS SHELDON CHAIRMAN OF THE TRADITIONAL VALUES COALITION WHICH INCLUDES 25000 CHURCHES IN ITS MEMBERSHIP MR SHELDON AN ORDAINED PRESBYTERIAN MINISTER WHO SPEAKS AT VARIOUS TVCAFFILIATED CHURCHES SAYS HE HAD TO GO IN PERSON TO LOBBY MEMBERS OF CONGRESS TUESDAY BECAUSE HE COULDN'T GET HIS CALLS THROUGH PROTESTING MR CLINTON'S EFFORTS TO LIFT THE BAN HAS SUPPLANTED ABORTION AS THE NO 1 ORGANIZING AND FUNDRAISING VEHICLE FOR SOME GROUPS OPERATION RESCUE FOUNDER RANDALL TERRY WHO UNTIL NOW FOCUSED ALMOST EXCLUSIVELY ON BATTLING ABORTION HAS ADDED GAYS IN THE MILITARY TO HIS AGENDA WE'RE AVALANCHING THEM MEMBERS OF CONGRESS WITH PHONE CALLS AND LETTERS SAYS MR TERRY WHO HAS NAMED THIS PROTEST MOVEMENT THE RESISTANCE MR TERRY SAYS HE'S ATTEMPTING TO INSPIRE A REBELLION AGAINST PRESIDENT CLINTON BECAUSE SODOMY IS AGAINST GOD'S LAW JUST LIKE BABYKILLING IS AGAINST GOD'S LAW MR SHELDON WHO LED A FIGHT FOR BALLOT MEASURES RESTRICTING GAY RIGHTS IN OREGON AND COLORADO THIS PAST FALL STAGED A NEWS CONFERENCE IN FRONT OF THE CAPITOL ACCOMPANIED BY HALFADOZEN MEMBERS OF CONGRESS AND SEVERAL RETIRED MILITARY OFFICERS REV SHELDON VIEWS THE HOMOSEXUAL AGENDA AS THE MOST POTENT ISSUE THE RELIGIOUS RIGHT HAS IN ITS ARSENAL AND REFERS TO PRESIDENT CLINTON AS THE GAY AGENDA PRESIDENT THIS SUNDAY A TVC ACTION ALERT WILL APPEAR IN THE BULLETINS OF AFFILIATED CHURCHES INSTRUCTING MEMBERS TO CONTINUE LOBBYING CONGRESS AND THE WHITE HOUSE ON THE ISSUE OTHER GROUPS INCLUDING THE FAMILY RESEARCH COUNCIL PUBLIC ADVOCATE CONCERNED WOMEN OF AMERICA AND THE CHRISTIAN ACTION NETWORK ARE FOCUSING ON THE ISSUE AND URGING THEIR MEMBERS TO LOBBY AGAINST PRESIDENT CLINTON'S PROPOSAL TO SPREAD THEIR MESSAGE THE GROUPS ARE USING A NETWORK OF TELEVISION AND RADIO PROGRAMS INCLUDING JERRY FALWELL'S OLD TIME GOSPEL HOUR PAUL WEYRICH'S SATELLITE TELEVISION NETWORK WHICH BROADCASTS TO ORGANIZATIONS IN MORE THAN 90 CONGRESSIONAL DISTRICTS AND FOCUS ON THE FAMILY'S RADIO PROGRAMS WHICH ARE CARRIED ON MORE THAN 1000 STATIONS PERHAPS MOST IMPORTANT CONSERVATIVE AND RELIGIOUS ORGANIZATIONS ARE FINDING THAT THE CONTROVERSY OVER GAYS IN THE MILITARY IS A DIRECTMAIL BONANZA ON JAN 8 OLIVER NORTH SENT OUT AN APPEAL FOR A SPECIAL CONTRIBUTION OF 15 OR 22 RIGHT AWAY TO HELP HIS FREEDOM ALLIANCE FUND A LOBBY CAMPAIGN AGAINST LIFTING THE MILITARY BAN IN HIS FUNDRAISING LETTER THE IRANCONTRA FIGURE URGED RECIPIENTS TO LITERALLY FLOOD THE WHITE HOUSE WITH PETITIONS AND LETTERS PROTESTING ANY WEAKENING OF THE BAN MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE DO YOU APPROVE OR DISAPPROVE OF BILL CLINTON'S GOAL OF ALLOWING GAYS AND LESBIANS TO SERVE IN THE US MILITARY 9301280029 930128 BUSINESS BRIEF ROADMASTER INDUSTRIES INC BOARD WEIGHS POSSIBLE SALE OR FINANCIAL RESTRUCTURING ROADMASTER INDUSTRIES INC SAID ITS BOARD IS CONSIDERING SEVERAL ALTERNATIVES TO REDUCE DEBT AND ENHANCE SHAREHOLDER VALUE INCLUDING POSSIBLY SELLING THE COMPANY OR ITS UNITS BUT THE ENGLEWOOD COLO MAKER OF BICYCLES AND FITNESS EQUIPMENT ALSO SAID THE BOARD DECLINED AN OFFER MADE LAST MONTH BY AN UNDISCLOSED PARTY TO BUY ITS ROADMASTER CORP UNIT TERMS OF THE OFFER WERE NOT DISCLOSED ROADMASTER SAID IT IS ALSO CONSIDERING A RESTRUCTURING OR RECAPITALIZATION ACCORDING TO FINANCIAL DISCLOSURES FOR THE THIRD QUARTER IT HAD 154 MILLION OF LONGTERM DEBT AND 523 MILLION OF REVOLVING CREDIT LINES COMPARED WITH SHAREHOLDER EQUITY OF 147 MILLION THOMAS B OLSON A COMPANY SPOKESMAN SAID THE COMPANY WANTS TO REDUCE THE DEBTTOEQUITY RATIO AND IS LOOKING TO GET RID OF ALL THE LONGTERM CREDIT LINES FOR THE FIRST NINE MONTHS OF 1992 ROADMASTER POSTED NET INCOME OF 33 MILLION OR 12 CENTS A SHARE ON SALES OF 527 MILLION COMPARED WITH A LOSS OF 253000 OR ONE CENT A SHARE ON SALES OF 505 MILLION FOR THE YEAREARLIER PERIOD 9301280028 930128 INTERNATIONAL BOEING FOUR MEMBERS OF AIRBUS TO STUDY JOINTLY DEVELOPING JET BY JEFF COLE AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO TIGHTENED ITS GRIP ON THE LARGEAIRPLANE MARKET UNVEILING A FORMAL AGREEMENT WITH THE FOUR MEMBERS OF RIVAL AIRBUS INDUSTRIE TO JOINTLY STUDY DEVELOPMENT OF A JET CAPABLE OF CARRYING 550 TO 800 PASSENGERS AS EXPECTED BOEING AND THE FOUR EUROPEAN COMPANIES FRANCE'S AEROSPATIALE SA BRITISH AEROSPACE PLC CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AND THE DEUTSCHE AEROSPACE UNIT OF GERMAN DAIMLERBENZ AG SAID THEY WILL JOINTLY CONDUCT A YEARLONG STUDY OF THE FEASIBILITY OF DEVELOPING THE GIANT PLANE WHICH WOULD HAVE A RANGE OF 7000 TO 10000 NAUTICAL MILES 8050 TO 11500 MILES THE EUROPEAN AIRBUS CONSORTIUM FOR ITS PART BACKED OFF RECENT CLAIMS THAT IT WAS DIRECTLY INVOLVED IN THE NEW BOEING AGREEMENT ON THE SOCALLED VERY LARGE COMMERCIAL TRANSPORT INDEED IN THEIR ANNOUNCEMENT THE COMPANIES SAID THAT THESE EUROPEAN COMPANIES ARE THE PARTNERS IN AIRBUS INDUSTRIE HOWEVER AIRBUS IS NOT A PARTY TO THIS STUDY MORE THAN ANYTHING ELSE THE PROJECT'S EXPECTED PRICE OF 10 BILLION TO 15 BILLION BROUGHT THE NORMALLY OPPOSING SIDES TOGETHER BOEING AND AIRBUS HAD SEPARATELY LOOKED AT BUILDING A BIG NEW JET BUT RAISING THAT MONEY SINGLEHANDEDLY WOULD BE NEARLY IMPOSSIBLE IN THE MIDST OF THE AVIATION INDUSTRY'S WORSTEVER RECESSION AEROSPACE FIRMS ALREADY SPENDING HUGE AMOUNTS ON RESEARCH AND DEVELOPMENT ARE MAKING DRASTIC PRODUCTION CUTBACKS FOR AIRBUS THE BOEING DEAL IS AN EMBARRASSMENT BECAUSE ITS MEMBERS ARE NOW CAMPED WITH THE COMPETITION IN A HIGHPROFILE ARRANGEMENT BOEING REJECTED AN ALLIANCE DIRECTLY WITH AIRBUS INDUSTRIE BECAUSE SAID ONE BOEING MANAGER IT IS VIEWED BY THE SEATTLEBASED COMPANY AS MERELY A PROGRAM OFFICE THAT OVERSEES PRODUCTION AND HAS NO MONEY TO INVEST BUT BOEING'S BOLD ENDEAVOR FACES A LONG CHALLENGING FLIGHT PATH EN ROUTE TO PRODUCTION OF THE NEW AIRCRAFT FIRST IT MUST JUSTIFY THE HUGE JOINT INVESTMENT ASSURING ITSELF THERE IS ADEQUATE DEMAND AMONG AIRLINES PLANNING THEIR FUTURE FLEETS IT ALSO NEEDS GOVERNMENT CLEARANCES AND MUST KNIT INTO ITS NEW ENDEAVOR SOME PARTICIPATION BY ITS ALLIED SUPPLIERS IN JAPAN AND POSSIBLY OTHER MANUFACTURERS IN RUSSIA AND THE US WITHOUT UPSETTING ITS NEW EUROPEAN PARTNERS BOEING'S TOP MANAGEMENT IS DEEPLY COMMITTED TO THE NEW ENTERPRISE ALTHOUGH THEY CONCEDE THERE IS ALWAYS THE CHANCE THE ALLIANCE COULD UNRAVEL WELL BEFORE IT BEGINS MAKING THE GIANT JETS NOW ENVISIONED FOR AROUND THE TURN OF THE CENTURY ABSOLUTELY SAID PHILIP CONDIT PRESIDENT OF BOEING THAT'S TRUE ON THE FRONT OF ANY PROGRAM HE SAID BOEING HAS WALKED AWAY FROM MAJOR PROJECTS AFTER MUCH STUDY BEFORE INCLUDING A HIGHEFFICIENCY 7J7 TWINJET IT SHELVED IN THE LATE 1980S FOR AIRBUS THE DEAL ORCHESTRATED BY BOEING CURRENTLY THE MAKER OF THE LARGEST JETLINER THE 747 IS CLEARLY A BLOW TO AN AIRBUSARRANGED PLAN FOR A NEW JUMBO JET ONE POTENTIAL SILVER LINING IS THAT THE EUROPEAN PARTNERS IN THE BOEINGLED DEAL WOULD TAKE AWAY A GREAT DEAL OF VALUABLE INFORMATION IF THEIR VENTURE EVENTUALLY FALLS APART IN TOKYO ON BUSINESS AIRBUS MANAGING DIRECTOR JEAN PIERSON SAID STATEMENTS THAT AIRBUS ISN'T INVOLVED ARE SEMANTICS BECAUSE THE CONSORTIUM BY DEFINITION IS ITS FOUR MEMBER COMPANIES HOWEVER THE CONSORTIUM DIDN'T REPEAT PAST STATEMENTS THAT IT WAS DIRECTLY INVOLVED AEROSPATIALE AND DEUTSCHE AEROSPACE OFFICIALS INSISTED THAT THE AGREEMENT WITH BOEING DOESN'T SIGNAL A WEAKENING OF THE CONSORTIUM'S TIES AND SAID MEMBER COMPANIES ARE KEEPING AIRBUS OFFICIALS INFORMED OF THE STUDY IT'S VERY EXPLORATORY SAID A SPOKESMAN FOR AEROSPATIALE THE COMPANIES SAID THEY WILL EXAMINE THE POSSIBILITY OF FORMING A CONSORTIUM TO DEVELOP PRODUCE MARKET SELL AND SUPPORT THE JET THE JOINT STUDY WILL BE HEADED BY TWO PROJECT DIRECTORS INCLUDING JUERGEN THOMAS A DEUTSCHE AEROSPACE EXECUTIVE VICE PRESIDENT AND JOHN HAYHURST A BOEING VICE PRESIDENT WHO HAS MANAGED THAT COMPANY'S PAST STUDIES OF THE IDEA THE COMPANIES WILL REVIEW THE STATUS OF THE JOINT STUDY AFTER SIX MONTHS TO DECIDE WHETHER AND HOW TO PROCEED BASED ON PRELIMINARY RESEARCH WE CURRENTLY BELIEVE THAT SUCH A PROJECT WOULD BE TOO BIG FOR ANY ONE MANUFACTURER MR HAYHURST SAID STUDIES INDICATE THERE MAY BE A NEED FOR A LARGER AIRPLANE AROUND THE TURN OF THE CENTURY BUT THE MARKET FOR SUCH AN AIRPLANE IS LIMITED MOST DEEPLY INTERESTED ARE CARRIERS HAULING LARGE PASSENGER LOADS ON INTERCONTINENTAL FLIGHTS AMONG THEM JAPAN AIR LINES LUFTHANSA BRITISH AIRWAYS AND UAL CORP'S UNITED AIRLINES THE PRICE PER AIRCRAFT COULD RANGE ABOVE 200 MILLION YOU ARE LOOKING AT A VERY SMALL MARKET SAID CHRIS PARTRIDGE OF AVMARK INTERNATIONAL LTD CONSULTANTS IN LONDON AND WHEN YOU LOOK AT THE AMOUNT OF MONEY THAT NEEDS TO BE POURED INTO IT FOR DEVELOPMENT AND MANUFACTURING THERE ISN'T ROOM FOR TWO MODELS THE HIGH COSTS HAVE PROMPTED BOTH AIRBUS AND BOEING TO APPROACH MAJOR JAPANESE COMPANIES INCLUDING MITSUBISHI HEAVY INDUSTRIES LTD AND KAWASAKI HEAVY INDUSTRIES LTD IN TOKYO YESTERDAY MR PIERSON OF AIRBUS RENEWED A CALL FOR THEIR PARTICIPATION IN ITS POSSIBLE PROJECT AIRBUS'S NEW 300SEAT A340 MODEL AND 335SEAT A330 ARE AIMED AT THE LOW END OF THE JUMBO MARKET BOEING AFTER DECADES OF DOMINATING THAT AREA WANTS TO MAKE SURE THAT AIRBUS DOESN'T INVADE THE HIGHCAPACITY RANGES AS WELL BOEING'S ANNOUNCEMENT COMES ONE DAY AFTER THE SEATTLE COMPANY SAID IT WAS SLASHING PRODUCTION RATES FOR ITS ENTIRE LINE OF AIRCRAFT MODELS TO REFLECT SLACKENING WORLDWIDE DEMAND YESTERDAY SHARES OF SEVERAL BOEING SUBCONTRACTORS SUFFERED FROM SPECULATION THAT THEIR BUSINESS WOULD SUFFER GREATLY FROM THE CUTS A SPOKESMAN FOR NORTHROP CORP WHICH MAKES FUSELAGE SECTIONS FOR THE 747 JUMBO JET SAID ABOUT 200 JOBS WILL BE SHAVED THIS YEAR FROM 2200 WORKERS ASSIGNED TO THE CONTRACT AND MORE CUTS WILL FOLLOW NEXT YEAR SHARES IN NORTHROP WHICH GETS ABOUT 9 MILLION IN REVENUE FROM EACH JET SLIPPED 175 TO 3325 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BOEING SHARES CLOSED AT 34625 OFF 875 CENTS IN BIG BOARD TRADING 9301280027 930128 MONEY FUND YIELDS UNCHANGED IN WEEK BUT ASSETS INCREASED YIELDS ON TAXABLE MONEY MARKET FUNDS WERE UNCHANGED IN THE LATEST WEEK BUT ASSETS ROSE AS INSTITUTIONAL INVESTORS RETURNED BILLIONS OF DOLLARS THAT HAD BEEN WITHDRAWN FROM THE FUNDS AT YEAR END THE AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 281 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 566 TAXABLE FUNDS MEANWHILE ROSE BY 64 BILLION TO 4886 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ADDED 91 BILLION TO THE 147 FUNDS OPEN ONLY TO THEM WHILE INDIVIDUAL INVESTORS WITHDREW 27 BILLION FROM 419 FUNDS INSTITUTIONAL INVESTORS TYPICALLY PULL OUT OF MONEY FUNDS IN DECEMBER TO HAVE MORE CASH ON THEIR BALANCE SHEETS ASSETS USUALLY JUMP EARLY IN THE NEW YEAR AS THE CASH FLOWS BACK IN THE AVERAGE SEVENDAY SIMPLE YIELD ON ALL TAXABLE FUNDS REMAINED AT 277 MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD EASED TO 283 FROM 284 THE AVERAGE 30DAY COMPOUND YIELD SLIPPED TO 287 FROM 288 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE TREASURY BILLS AND COMMERCIAL PAPER SHORTTERM CORPORATE IOUS LENGTHENED A DAY TO 60 DAYS THAT'S CONSIDERED A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES TO RISE ANY TIME SOON THE LEVEL OF RATES WE NOW SEE IS WHAT WE'RE GOING TO SEE FOR A WHILE WITH MINOR VARIATIONS SAID WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ALTHOUGH YIELDS ON TAXFREE MONEY FUNDS ROSE IN THE LATEST WEEK AS ASSETS FELL THEY REMAIN VERY LOW THE AVERAGE SEVENDAY COMPOUND YIELD JUMPED TO 187 FROM 173 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 260 FOR INVESTORS IN THE 28 TAX BRACKET AND TO 271 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 307 TAXEXEMPT FUNDS FELL 24 BILLION TO 1009 BILLION REDUCING THE DEMAND FOR THE SHORTTERM MUNICIPAL SECURITIES IN WHICH THE FUNDS INVEST THIS HAS THE EFFECT OF PUSHING PRICES DOWN AND YIELDS UP AVERAGE MATURITY OF THE TAXFREE FUNDS REMAINED AT 55 DAYS 9301280026 930128 BUSINESS BRIEF KIMBERLYCLARK HAD 558 MILLION LOSS IN FOURTH QUARTER DUE TO BIG CHARGES DALLAS KIMBERLYCLARK CORP CITING PREVIOUSLY ANNOUNCED RESTRUCTURING AND ACCOUNTING CHARGES AND LOWER DIAPER PRICES REPORTED A SLIGHTLY LARGERTHANEXPECTED FOURTHQUARTER LOSS OF 558 MILLION OR 35 CENTS A SHARE THAT COMPARED WITH NET INCOME OF 1387 MILLION OR 87 CENTS A SHARE A YEAR EARLIER WITHOUT EXTRAORDINARY ITEMS KIMBERLY'S PROFIT FOR THE QUARTER REMAINED ROUGHLY FLAT AT 1205 MILLION OR 75 CENTS A SHARE COMPARED WITH 1187 MILLION OR 74 CENTS A SHARE A YEAR EARLIER THE AMOUNT FELL BELOW ANALYSTS' AVERAGE ESTIMATE OF 78 CENTS A SHARE ACCORDING TO FIRST CALL AS A RESULT SEVERAL ANALYSTS WERE CONSIDERING SLASHING 1993 EARNINGS ESTIMATES WHICH AVERAGE 371 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY KIMBERLY'S STOCK WAS QUOTED AT 5975 DOWN 375 CENTS FOURTHQUARTER SALES ROSE ABOUT 5 TO 181 BILLION FROM 17 BILLION A YEAR EARLIER THE COMPANY SAID IT WAS HURT BY LOWER SELLING PRICES FOR ITS HUGGIES DISPOSABLE DIAPERS IN THE US AMID A FIERCE MARKETING WAR WITH RIVAL PROCTER & GAMBLE CO OUTSIDE NORTH AMERICA RESULTS WERE HURT BY WEAK ECONOMIES IN EUROPE AND COMPETITIVE BUSINESS CONDITIONS AND STARTUP COSTS IN EUROPE AND SOUTH KOREA MOST OF THE IMPROVEMENT IN SALES AND OPERATING PROFIT STEMMED FROM DOMESTIC SALES VOLUME INCREASES FOR CHILD CARE FEMININE CARE AND HOUSEHOLD PRODUCTS FOR THE YEAR THE CONSUMER PRODUCTS AND PAPER MAKER REPORTED NET INCOME OF 135 MILLION OR 84 CENTS A SHARE DOWN 73 FROM 5083 MILLION OR 318 A SHARE A YEAR EARLIER PROFIT BEFORE EXTRAODRINARY ITEMS WAS 534 MILLION OR 331 A SHARE UP FROM 4883 MILLION OR 305 A SHARE A YEAR EARLIER IN DECEMBER KIMBERLY SAID IT WOULD TAKE A CHARGE OF 172 MILLION OR 107 A SHARE TO RESTRUCTURE ITS MANUFACTURING OPERATIONS AND CUT 800 JOBS IN EUROPE IT ALSO ANNOUNCED A CHARGE OF 210 MILLION OR 131 A SHARE AGAINST FIRSTQUARTER RESULTS TO REFLECT ACCOUNTING CHANGES FOR POSTRETIREMENT HEALTH BENEFITS AND INCOME TAXES NET INCOME FOR THE YEAR WAS ALSO REDUCED BY A CHARGE OF 17 MILLION OR 11 CENTS A SHARE TO REFLECT THE ACCOUNTING CHANGES THE CHARGE IS BEING APPLIED EVENLY OVER THE FOUR QUARTERS 9301280025 930128 KEYSTONE CONSOLIDATED CHARGE DALLAS KEYSTONE CONSOLIDATED INDUSTRIES INC SAID IT WILL REPORT A 70 MILLION OR 1255 A SHARE ONETIME NONCASH CHARGE RETROACTIVE TO 1992 AS A RESULT OF ACCOUNTING CHANGES RELATED TO POST RETIREMENT BENEFITS KEYSTONE A MAKER OF STEEL AND WIRE PRODUCTS WILL RESTATE PREVIOUSLY REPORTED 1992 RESULTS 9301280024 930128 BUSINESS BRIEF GALACTIC RESOURCES LTD VANCOUVER MINING COMPANY SAYS IT FILED FOR BANKRUPTCY GALACTIC RESOURCES LTD SAID IT FILED FOR BANKRUPTCY UNDER THE LAWS OF CANADA BECAUSE OF ENVIRONMENTAL CLEANUP COSTS AT ITS INACTIVE SUMMITVILLE GOLD MINE IN COLORADO THE VANCOUVER GOLD MINING COMPANY PREVIOUSLY SAID IT MIGHT HAVE TO FILE FOR BANKRUPTCY BECAUSE IT WAS UNABLE TO COMPLY WITH A COURT ORDER TO MEET STATE ENVIRONMENTAL STANDARDS FOR THE MINE THE COMPANY LAST YEAR SOLD MOST OF ITS GOLD MINING ASSETS TO RAISE CASH FOR ENVIRONMENTAL RECLAMATION AT SUMMITVILLE GALACTIC SAID IT ASKED FOR TRADING IN ITS SHARES TO BE SUSPENDED ITS SHARES CLOSED ON THE AMERICAN STOCK EXCHANGE AT 3/64 9301280022 930128 ALLIEDSIGNAL TO BUILD PLANT MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT WILL BUILD A 100 MILLION PLANT IN GEISMAR LA TO MAKE NONOZONEDEPLETING REFRIGERANTS TO REPLACE CHLOROFLUOROCARBONS THE AEROSPACE AND INDUSTRIAL TECHNOLOGY COMPANY PLANS TO COMPLETE THE FIRST PHASE OF THE FACILITY BY JULY 1994 INITIALLY THE PLANT WILL HAVE AN ANNUAL CAPACITY OF 30 MILLION POUNDS WHICH WILL BE DOUBLED BY 1996 THE COMPANY SAID THE DEADLINE FOR THE PHASEOUT OF CHLOROFLUOROCARBONS OR CFCS IS JANUARY 1996 IT ADDED THE GEISMAR FACILITY IS IN ADDITION TO A REFRIGERANT PLANT IN BATON ROUGE LA THAT WILL BEGIN OPERATIONS IN THE SUMMER AND ANOTHER FACILITY IN BUFFALO NY THAT WILL OPEN THIS SPRING 9301280021 930128 GENERAL DYNAMICS NET INCREASED 5 IN THE 4TH QUARTER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL DYNAMICS CORP'S FOURTHQUARTER NET INCOME ROSE 5 TO 174 MILLION BOLSTERED BY 109 MILLION IN ONETIME ITEMS THE 1991 QUARTER INCLUDED PROFIT FROM TWO MAJOR BUSINESSES THAT WERE SOLD BEFORE THE LATEST QUARTER BEGAN EARNINGS IN THE QUARTER WERE EQUAL TO 559 A SHARE ON A FULLY DILUTED BASIS THE YEAR EARLIER THE FALLS CHURCH VA DEFENSE CONTRACTOR POSTED EARNINGS OF 166 MILLION OR 387 A SHARE THE AVERAGE NUMBER OF SHARES FELL 30 TO 311 MILLION FROM 429 MILLION AFTER A MAJOR SHARE REPURCHASE IN JULY SALES IN THE PERIOD EASED TO 915 MILLION FROM 921 MILLION YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENERAL DYNAMICS STOCK CLOSED AT 115 UP 150 OPERATING EARNINGS FROM CONTINUING OPERATIONS BEFORE INTEREST AND OTHER ITEMS DOUBLED TO 52 MILLION THE IMPROVEMENT MAINLY REFLECTED INCREASED PRODUCTIVITY BY THE NUCLEAR SUBMARINE OPERATIONS A SHIFT TOWARD SALES OF HIGHERPRICED TANKS AND NARROWED LOSSES IN SPACELAUNCH SYSTEMS THE COMPANY SAID DESPITE THE BIG EARNINGS JUMP SKEPTICISM LINGERS IN THE DEFENSE INDUSTRY OVER THE LONGEVITY OF GENERAL DYNAMICS' REMAINING BUSINESSES THE US GOVERNMENT IS CONSIDERED UNLIKELY TO ORDER ANOTHER NUCLEAR SUBMARINE AND ITS DEMAND FOR TANKS IS DECLINING RECENT PROFIT GROWTH HAS BEEN SPURRED LARGELY BY FOREIGN TANK SALES GENERAL DYNAMICS HALTED LAUNCHES OF ITS ATLAS CENTAUR ROCKET AFTER ONE LAUNCH FAILED AUG 22 AN INVESTIGATION HAS BEEN COMPLETED THE COMPANY SAID YESTERDAY AND PREPARATIONS ARE UNDER WAY TO RESUME LAUNCHES IN MARCH WILLIAM A ANDERS CHAIRMAN SAID IN A RECENT INTERVIEW THAT INVESTIGATORS BELIEVE THE FAILURE WAS CAUSED BY A MOTOR VALVE THAT MALFUNCTIONED UNDER EXTREMELY COLD TEMPERATURES OPERATING EARNINGS EXCLUDE RESULTS FROM GENERAL DYNAMICS' JETFIGHTER BUSINESS WHICH THE COMPANY HAS AGREED TO SELL TO LOCKHEED CORP GENERAL DYNAMICS HAS SAID THAT COMPLETION OF THE SALE SET FOR NEXT MONTH WILL BRING MORE THAN 1 BILLION IN CASH AFTER TAXES AND TRANSACTION COSTS SPECIAL ITEMS THAT BOLSTERED FOURTHQUARTER NET WERE A 95 MILLION TAX CREDIT AND A 14 MILLION AFTERTAX GAIN FROM THE SALE OF SECURITIES FOR ALL OF 1992 NET INCOME ROSE 61 TO 815 MILLION OR 2156 A SHARE AFTER THE SPECIAL ITEMS FROM 505 MILLION OR 1180 A SHARE THE YEAREARLIER RESULTS INCLUDE PROFIT FROM THE CESSNA BUSINESSAIRCRAFT UNIT SOLD IN FEBRUARY AND THE COMPANY'S MISSILE BUSINESS THAT WAS SOLD IN AUGUST PRETAX EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES AND OTHER ITEMS ROSE 52 TO 175 MILLION FROM 115 MILLION SALES ROSE 45 TO 347 BILLION FROM 332 BILLION 9301280020 930128 BUSINESS BRIEF EASTERN ENTERPRISES INC BOSTON GAS KEEPS EMPLOYEES FROM WORKING IN A DISPUTE EASTERN ENTERPRISES INC'S BOSTON GAS CO KEPT 900 EMPLOYEES LOCKED OUT OF WORK IN A LABOR DISPUTE THE COMPANY AND THE UNION A UNITED STEELWORKERS LOCAL FAILED TO REACH A NEW CONTRACT SUNDAY AND THE COMPANY REFUSED TO LET THE EMPLOYEES KEEP WORKING WITHOUT A PACT THE COMPANY CITED SAFETY CONCERNS AND WORRIES THAT EQUIPMENT MIGHT BE ABANDONED IN THE FIELD IF WORKERS WEREN'T UNDER CONTRACT THE UNION REFUSED TO SIGN A CONTRACT REQUIRING MEMBERS TO PAY AN AVERAGE OF 560 A YEAR FOR HEALTH BENEFITS A BOSTON GAS SPOKESMAN SAID NEW TALKS HAVEN'T BEEN SCHEDULED ALTHOUGH MANAGERS ARE PERFORMING HOOKUPS AND EMERGENCY WORK THE COMPANY ASKED CUSTOMERS NEEDING STOVE OR FURNACE REPAIRS TO CALL PLUMBERS AND HEATING CONTRACTORS 9301280019 930128 WORLD MARKETS TOKYO STOCKS INCH UP AMID HOPES OF RATE CUT SHARES ARE MIXED IN LONDON LOWER IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP SHARES IN TOKYO INCHED UP WEDNESDAY AS TRADING CONTINUED TO BE TECHNICALLY DOMINATED LONDON EQUITIES ENDED MIXED TO LOWER IN A GRADUAL SLIPPAGE AFTER THE PREVIOUS DAY'S ENTHUSIASM ABOUT LOWER INTEREST RATES FRANKFURT STOCKS FELL SHARPLY AFTER GERMANY POPPED A BUBBLE OF RATECUT SPECULATION IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 20518 POINTS TUESDAY ADDED A SCANT 1705 TO 1650968 ON THURSDAY THE NIKKEI INDEX ROSE 14889 POINTS TO CLOSE THE MORNING SESSION AT 1665857 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH ROSE 585 POINTS TUESDAY GAINED 252 TO 165424 BUYING BY PUBLIC PENSION FUNDS AND DEALERS WAS MET BY TOUGH SELLING PRESSURE FROM TOKKIN MONEY TRUSTS AND HEDGE FUNDS THE NIKKEI INDEX SPENT MOST OF THE DAY BOBBING UP AND DOWN WITHOUT ANY CLEAR DIRECTION HOPES THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE THIS WEEK CONTINUED TO RUN HIGH AND CAUSED SOME COVERING OF SHORT OR OVERSOLD POSITIONS EVEN THOUGH A MONETARY EASING IS ALREADY WIDELY FACTORED INTO STOCK PRICES AFTER THE MARKET CLOSED THE CENTRAL BANK SAID ITS GOVERNOR YASUSHI MIENO WOULD APPEAR BEFORE A PARLIAMENTARY COMMITTEE THURSDAY TO ANSWER QUESTIONS ON MONETARY POLICY MR MIENO CANCELED A NEWS CONFERENCE WEDNESDAY A MOVE THAT INVESTORS INTERPRETED AS A SIGN HE WAS WORKING ON DETAILS OF A RATE REDUCTION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED DOWN 32 POINTS TO 28325 BUT DECLINERS EDGED OUT ADVANCERS 4947 WITH FOUR ISSUES UNCHANGED THE FT 30STOCK INDEX FELL 29 TO 21870 VOLUME WAS 7534 MILLION SHARES COMPARED WITH 8617 MILLION A DAY EARLIER AFTER LONDON'S TUESDAY RALLY ON BRITAIN'S REDUCTION IN THE BASE LENDING RATE SOME PROFITTAKERS EMERGED AND THE EXCITEMENT WAS FURTHER SUBDUED BY WORRIES ABOUT RIGHTS ISSUES OR CORPORATIONS OFFERING HOLDERS MORE STOCK TO RAISE FRESH CAPITAL THIS ANXIETY BEAT DOWN STOCK PRICES IN THE INSURANCE SECTOR WHICH HAS BEEN BATTERED DURING BRITAIN'S RECESSION PHARMACEUTICAL ISSUES CONTINUED TO FACE PRESSURE FROM SPECULATION THAT PLANNED US HEALTHCARE REFORMS MIGHT REDUCE THE COMPANIES' EARNINGS MORE THAN WAS AT FIRST FEARED IN FRANKFURT THE DAX 30STOCK INDEX LOST 1384 POINTS TO END AT 156232 ITS INTRADAY LOW PRICES GAVE UP GROUND FOR MOST OF THE SESSION AND THE DECLINE ACCELERATED TOWARD THE CLOSE BLUECHIPS WERE WEAK ACROSS THE BOARD AND 26 OF THE DAX STOCKS DECLINED THE FALTERING WAS LINKED TO COMMENTS A DAY EARLIER BY THE PRESIDENT OF GERMANY'S CENTRAL BANK HELMUT SCHLESINGER THAT THE COUNTRY'S RISING INFLATION PRECLUDES CUTTING LENDING RATES PARIS EQUITIES OPENED LOWER PARTLY FROM DISAPPOINTMENT ABOUT GERMAN INTEREST RATES HOLDING TIGHT AND REMAINED WEAK IN THE ABSENCE OF ANY NEWS TO REVIVE BUYING INTEREST EVEN BASKET SALES BY BROKERAGE FIRMS SEEKING TO PUSH PRICES UP FAILED AMSTERDAM SHARE PRICES ENDED MIXED AFTER LOSING EARLY GAINS TAKING THEIR CUES FROM DROPS IN LONDON AND FRANKFURT AND IN EARLY NEW YORK TRADING MILAN STOCKS FIRMED AFTER A SEESAW SESSION IN WHICH A STRONG PERFORMANCE BY INSURANCE SHARES WAS COUNTERED BY LOSSES AMONG INDUSTRIAL ISSUES STOCKHOLM PRICES WEAKENED ON CORPORATE EARNINGS WORRIES AND DECLINES ON BOURSES ABROAD ZURICH STOCKS FELL AS THE MARKET CONSOLIDATED AND WERE PRESSURED BY FRANKFURT'S DROP SYDNEY STOCKS ROSE BUOYED BY A FIRMER AUSTRALIAN DOLLAR AND GAINS THE PREVIOUS DAY IN LONDON AND NEW YORK SINGAPORE EQUITIES' DECLINE CAME IN LIGHT SELECTIVE ACTIVITY HONG KONG SHARES RECOVERED FROM EARLY LOSSES TO POST MODERATE GAINS IN THIN TRADING MANILA SHARES STAGED A TECHNICAL REBOUND FROM A STEEP DROP AND ENDED FIRMER IN MODERATE TO HEAVY VOLUME WELLINGTON STOCKS ENDED SHARPLY HIGHER EVEN AFTER SOME PROFITTAKING IN BLUECHIPS TAIPEI PRICES PLUNGED IN MODERATE TRADING AS INVESTORS WORRIED ABOUT POLITICAL UNCERTAINTY CAUSED BY FACTIONAL DISPUTES IN TAIWAN'S RULING NATIONALIST PARTY SHARES IN SEOUL DROPPED SHARPLY WITH LARGECAPITALIZATION MANUFACTURING ISSUES LEADING THE WAY DOWN THE BEARISHNESS WAS LINKED TO INSTITUTIONAL INVESTORS' IGNORING THE SOUTH KOREAN GOVERNMENT'S CALL LAST AUGUST FOR THEM TO BUY MORE SHARES THAN THEY SELL AMONG CORPORATE DEVELOPMENTS IN FRANKFURT VEBA FELL 250 MARKS TO 367 MARKS 23257 IN A PROVISIONAL REPORT THE ENERGY COMPANY SAID ITS 1992 PROFIT FELL 19 FROM A YEAR EARLIER TO 900 MILLION MARKS 5703 MILLION THE MARKET HAD EXPECTED AN EVEN LARGER DROP DAIMLERBENZ GAVE UP 650 OR 11 TO 56650 THE INDUSTRIAL GROUP SAID ITS MERCEDESBENZ UNIT IS READY FOR A RADICAL TRANSFORMATION OF ITS PRODUCT LINE AND A NEW STRATEGY THE MARKET VIEWED THE RESTRUCTURING AS A COSTLY AND POSSIBLY RISKY DEPARTURE FROM THE AUTO MAKER'S TRADITIONAL STRATEGY 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 IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9301280018 930128 WOLVERINE SETTLES LAWSUIT ROCKFORD MICH WOLVERINE WORLD WIDE INC OWNER OF THE HUSH PUPPIES TRADEMARK FOR CHILDRENSWEAR SAID IT SETTLED A TRADEMARK INFRINGEMENT LAWSUIT AGAINST MARILYN INDUSTRIES A FLORIDABASED APPAREL DISTRIBUTOR MARILYN ALLEGEDLY SOLD AND EXPORTED CHILDRENSWEAR BEARING THE HUSH PUPPIES TRADEMARK WITHOUT APPROVAL FROM WOLVERINE UNDER THE SETTLEMENT MARILYN MUST CEASE SELLING UNAUTHORIZED WOLVERINE PRODUCTS AND PAY AN UNDISCLOSED SUM TO COMPENSATE WOLVERINE FOR ITS LOSSES 9301280017 930128 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN COLLEGE TUITION HEADS NORTH AND SO DO REQUESTS FOR FINANCIAL AID PUBLIC COLLEGES AGAIN SEEM LIKELY TO SEEK A STEEPER HIKE THAN PRIVATE SCHOOLS IN THE 199394 YEAR AS AILING STATES STRUGGLE FOR FUNDS SAYS CONSULTANT ARTHUR HAUPTMAN IN THE 199293 YEAR TUITION ROSE 10 AT PUBLIC SCHOOLS AND 6 TO 7 AT PRIVATE ONES CITY UNIVERSITY OF NEW YORK HOLDS THE LINE ON TUITION AFTER A 32 INCREASE LAST YEAR FEES AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WILL DEPEND ON THE SCOPE OF ANY CUTS THE STATE BUDGET MAY HAVE IN STORE INDIANA UNIVERSITY IN BLOOMINGTON HOPES TO AT LEAST KEEP ITS INCREASE FLAT AT 8 BUT ADDS THE LEVEL DEPENDS ON STATE FUNDS BRADLEY UNIVERSITY AND UNION COLLEGE BOTH PRIVATE SAY TUITION WILL RISE ABOUT 5 YALE UNIVERSITY SAYS ITS INCREASE WON'T HIT DOUBLE DIGITS MEANWHILE STUDENTS SHOP MORE FOR DEALS BERKELEY STANFORD AND BRADLEY SAY AID QUERIES GROW FINAL COST IS DEFINITELY THE MAIN FACTOR ON PARENTS' MINDS SAYS GARY BERGMAN AT BRADLEY YALE OFFICIAL RICHARD SHAW JR NOTES A WORRYING TREND AS SOME SCHOOLS LURE ACHIEVERS WITH AID REGARDLESS OF NEED DON'T BET ON IT OFFICE WORKERS INSIST SUPER BOWL BETTING SLOWS WALL STREETERS SAY ILLEGAL WAGERS WANE AFTER A CRACKDOWN ON OFFICE POOLS IN RECENT YEARS BUT SOME WORKERS NOTE THE BETTING SIMPLY WENT FURTHER UNDERGROUND BOXES ON A BETTING GRID AREN'T SELLING FOR 10000 A CHANCE LIKE THEY ONCE DID SAYS A TRADER STILL SOME BOXES WHICH WAGERERS USE TO BET ON THE SCORE SOLD FOR 5000 IN HIS OFFICE FUNDING A HEFTY 500000 POT BARS MEANWHILE CAPITALIZE ON THE GAME WITH POOLS AND PROMOS ONE MANHATTAN PUB SAYS ITS 20PERBET CHANCES SOLD OUT TWO WEEKS AGO MUM'S THE WORD ON EXACTLY WHO IS RUNNING A POOL BUT THE WASHINGTON STAFFS OF CONGRESSMEN FROM TEAM TOWNS DALLAS AND BUFFALO CONCEDE THE IDEA HAS CROSSED THEIR MINDS AND THE TEXAS AND NEW YORK AGRICULTURE COMMISSIONERS FACE OFF IN A BOWL CHALLENGE THE WINNER GETS A CASE OF WINE PRODUCED IN THE LOSER'S STATE NEW CONTRACEPTIVES EXPAND THE US MARKET AS SALES OF THE PILL SLOW TWO DRUGS THAT PROVIDE LONGTERM PROTECTION NORPLANT AND DEPOPROVERA WILL BE THE MAJOR DRIVING FORCE FOR GROWTH IN PRESCRIPTION CONTRACEPTIVE SALES SAYS ANALYST HEMANT SHAH OF HKS & CO DEPOPROVERA WHICH IS DELIVERED BY INJECTION AND PROVIDES THREEMONTH PROTECTION WAS JUST LAUNCHED BY UPJOHN CO THIS MONTH WHILE NORPLANT AN AMERICAN HOME PRODUCTS DEVICE THAT IS IMPLANTED IN THE UPPER ARM AND CONTROLS OVULATION FOR UP TO FIVE YEARS HAS BEEN IN THE US SINCE 1991 MR SHAH SEES THE 1 BILLION MARKET GROWING 57 IN 1993 WHILE SALES OF ORAL CONTRACEPTIVES ARE LIKELY TO FALL 24 LAST YEAR SALES OF THE PILL FELL 4 DUE MAINLY TO COMPETITION FROM NORPLANT BUT KEN ABRAMOWITZ OF SANFORD C BERNSTEIN SAYS ORAL CONTRACEPTIVE SALES MAY GET A BOOST FROM A SLEW OF REFORMULATED ORAL PRODUCTS THREE FROM ORTHO PHARMACEUTICAL AND ONE FROM ORGANON THE MARKET COULD CHANGE DRAMATICALLY IF THE PILL WERE SOLD OVER THE COUNTER AS SOME DRUG FIRMS WISH COMPLAINING COSTS AN AVERAGE 380 PER PHONE CALL UNDER A NEW YORK BETTER BUSINESS BUREAU PILOT PROGRAM THE PAYPERCALL 900NUMBER GENERATES REVENUE AND IS BEING EXPANDED TO SEVERAL OTHER BUREAUS SAYS THE COUNCIL OF BETTER BUSINESS BUREAUS IN ARLINGTON VA CURL UP WITH A GOOD A PERFUME B COMPUTER DISK C BOOK D ALL OF THE ABOVE ANSWER D NOVELIST PAT BOOTH TEAMS UP WITH A FRAGRANCE FIRM TO LAUNCH A SCENT TO MATCH HER NEW BOOK MIAMI MEANWHILE ALLEGRO NEW MEDIA PICKS THE ALGONQUIN HOTEL OF THE LITERARY ROUNDTABLE FAME AS THE SITE FOR A DEMONSTRATION OF ITS BOOKS ON FLOPPY DISKS AN ART CREDIT CARD IS UNVEILED BY FIRST BANK & TRUST NEW ORLEANS ITS ARTCARD LETS BUYERS MAKE A 10 DOWN PAYMENT TO A GALLERY AND PAY THE REST UP TO 10000 MONTHLY WITH 129 ANNUAL INTEREST GALLERIES GET PAID FOR THE ARTWORK UP FRONT MINUS A 2 FEE PAID TO THE BANK WESTWARD WHO MOVERS TRACK MIGRATING FAMILIES AS THEY HEAD TOWARD JOBS PROFESSIONAL MOVERS ALLIED VAN LINES AND ATLAS VAN LINES SEPARATELY REPORT THAT THE NORTHWEST SOUTHWEST AND SOUTH DREW THE MOST INBOUND TRAFFIC DURING 1992 COLORADO AND OREGON WERE BIG GAINERS CALIFORNIA CONTINUED TO BE THE BIG LOSER RYDER THE DOITYOURSELF RENTAL FIRM SAYS KNOXVILLE TENN AND HUNTSVILLE ALA TOPPED ITS NET INBOUND LIST ONLY FIVE OF THE TOP 20 RYDER INBOUNDRATIO CITIES WERE IN THE WEST DOWN FROM EIGHT IN THE 1991 SURVEY DISPLACED BLUECOLLAR WORKERS ARE DOING THE SAME THING AS MANUFACTURERS HEADING SOUTH SAYS JOSEPH HOTZ OF THE UNIVERSITY OF CHICAGO'S POPULATION RESEARCH CENTER WHITECOLLAR WORKERS ARE DRAWN TO HIGHTECH JOBS IN THE NORTHWEST HE ADDS VERMONT BUCKED THE TREND TO BECOME THE ONLY NEW ENGLAND STATE WITH HIGHER INBOUND MOVES IN ALLIED'S POLL VERMONT OFFICIAL BILL MCGRATH SAYS THE STATE HAS HAD GOOD LUCK IN RECRUITING SMALL FIRMS BRIEFS TICKETMASTER NEW YORK LAUNCHES A PROGRAM TO GIVE CONCERT THEATER AND SPORTS TICKETS EACH MONTH TO HIGHSCHOOL STUDENTS WHO IMPROVE THEIR ATTENDANCE OR DO VOLUNTEER WORK SMILE LOS ANGELES COUNTY TESTS A CAMERAANDCOMPUTER SYSTEM THAT SNAPS DRIVERS AS THEY ILLEGALLY CROSS RAIL TRACKS CITATIONS FOLLOW 9301280016 930128 THE FAILURES OF CENTRAL PLANNING AT IBM BY PAUL B CARROLL IT WAS GOOD THAT IBM'S CHAIRMAN JOHN F AKERS RESIGNED THIS WEEK BUT IBM'S OLDBOYSNETWORK BOARD STILL HAS TO HAVE THE STOMACH TO GO OUTSIDE THE COMPANY FOR A SUCCESSOR FOR THE FIRST TIME IN IBM'S HISTORY THAT SUCCESSOR NEEDS THE COURAGE TO THROW OUT MOST OF IBM'S TOP FEW LAYERS OF MANAGEMENT AND BRING IN PEOPLE WHO WILL BLOW UP IBM'S CULTURE AND DO IN THE LEGENDARY IBM SALESMAN IBM'S CULTURE SERVED THE COMPANY WELL FOR DECADES IBM'S CONTENTION SYSTEM FOR INSTANCE LET TOM WATSON JR DECENTRALIZE THE COMPANY IN THE MID1950S AND PREPARE THE WAY FOR THE PHENOMENAL GROWTH OF THE 1960S IT HELPED ENSURE THAT LOWERLEVEL EXECUTIVES MADE THE RIGHT CHOICES BY FORCING THEM TO ARGUE WITH THEIR PEERS BEFORE PROCEEDING BUT BY NOW THE SYSTEM HAS PRODUCED A GENERATION OF PETTY BUREAUCRATS WHO FIGHT MORE FOR THEIR TURF THAN FOR WHAT IS RIGHT FOR THE COMPANY THE ARGUING SIMPLY SLOWS DECISIONMAKING AND MAKES PEOPLE LEERY OF TRYING ANYTHING NEW SO IBM MISSED THE SALAD DAYS IN THE MARKETS FOR LAPTOP COMPUTERS NOTEBOOK COMPUTERS AND WORKSTATIONS THE COMPANY TOOK YEARS TO GET IT RIGHT IN THE MINICOMPUTER MARKET AND IBM SAT BACK AND WAITED WHILE OTHERS SHOWED HOW TO EXPLOIT MAILORDER DISTRIBUTION OF PERSONAL COMPUTERS EVEN WITH MORE MATURE PRODUCT LINES SUCH AS DESKTOP PCS IBM CAN BE MONTHS LATE TO MARKET AT A TIME WHEN ITS STUDIES HAVE FOUND THAT 90 OF A NEW PRODUCT'S PROFITS ARE MADE IN THE SIX MONTHS AFTER SOMEONE FIRST BRINGS IT TO MARKET IBMERS EVEN TALK MORE AND MORE LIKE BUREAUCRATS PEOPLE AREN'T FIRED THEY'RE MIA'D MIA STANDING FOR MANAGEMENTINITIATED ATTRITION IBMERS TALK ABOUT EACH OTHER BASED ON THEIR SALARY CATEGORY MUCH AS CIVIL SERVANTS DO HE'S A 57 BUT SHE JUST BECAME A 61 THE FLAWS IN IBM'S CULTURE REALLY BEGAN TO FORM IN THE EARLY 1980S WHEN IBM HAD SUCH A STRING OF SUCCESSES THAT IBMERS BEGAN TO LOSE TOUCH WITH REALITY THE SUCCESSES WERE INFLATED BY THE ONETIME BLIP THAT CAME WHEN THE PC BURST ONTO THE SCENE IN 1981 AND BY IBM'S DECISION TO ENCOURAGE CUSTOMERS TO BUY RATHER THAN LEASE WITH COMPETITORS SEEMINGLY VANQUISHED THE MEASURE OF SUCCESS BECAME HOW HIGH SOMEONE COULD RISE IN THE COMPANY THE HIGHEST COMPLIMENT SOMEONE COULD PAY A RISING STAR WAS HE'S GOOD WITH FOILS THE TRANSPARENCIES USED ON OVERHEAD PROJECTORS IN ALL IBM MEETINGS FOILS BECAME SUCH A PART OF THE CULTURE THAT SENIOR EXECUTIVES STARTED HAVING PROJECTORS BUILT INTO THEIR BEAUTIFUL ROSEWOOD DESKS IBM'S SOVIETSTYLE CENTRAL PLANNING CONTRIBUTED TO THE AIR OF UNREALITY AN IBM BUSINESS GETTING 80 OF ITS COSTS ASSIGNED TO IT DIDN'T NEED TO LIMIT ITS ACTUAL SPENDING IT NEEDED TO PREPARE GOOD FOILS TO CONVINCE THE ACCOUNTANTS AT IBM THAT SOME OTHER BUSINESS SHOULD CARRY MORE OF THE OVERHEAD THE SYSTEM TYPICALLY ALSO ALLOCATED ALL OF A TECHNOLOGY'S R&D SPENDING TO THE FIRST GROUP THAT USED THE TECHNOLOGY OTHER BUSINESSES GOT A FREE RIDE LATE LAST SPRING JIM CANNAVINO WHO RUNS IBM'S PC BUSINESS INSISTED THAT HIS WAS THE MOST PROFITABLE PC BUSINESS IN THE WORLD BY FALL THOUGH AS IBM BEGAN TO MOVE AWAY FROM ITS FUNNY ALLOCATION SYSTEM IBM DISCLOSED THAT ITS PC BUSINESS WAS UNPROFITABLE IBM'S COMPETITORS SAY THEIR ANALYSES SHOW THE BUSINESS HAD PROBABLY BEEN LOSING MONEY ON AND OFF FOR YEARS IBM JUST DIDN'T KNOW IT MR AKERS ACTUALLY ARTICULATED MANY OF IBM'S PROBLEMS OVER THE EIGHT YEARS HE RAN IBM BUT HE'S ALWAYS COME UP A DAY LATE AND A BILLION DOLLARS SHORT OF SOLVING THEM HE RECOGNIZED THAT IBM'S VAUNTED SALES FORCE HAD BECOME AN ENORMOUS EXPENSE AND PUT IN PLACE A PLAN TO TURN IBM SALESMEN INTO CONSULTANTS WHO WOULD BILL CUSTOMERS FOR THEIR TIME UNFORTUNATELY THE PLAN CALLED FOR DOING THAT WITH 5 OF THE SALESMEN A YEAR MEANING THE SHIFT WOULD TAKE 20 YEARS FORMER EXECUTIVES SAY THAT THOSE SALESMEN WHO CAN'T MAKE IT AS CONSULTANTS NEED TO GO THEY SAY MORE THAN HALF SERIOUSLY THAT ROUTINE MAINFRAME SALES LIKE PC SALES COULD BE DONE THROUGH MAIL ORDER MR AKERS ELIMINATED THOUSANDS OF JOBS IN SOME DEVELOPMENT AND SERVICE ORGANIZATIONS IN 1987 BUT HIS ATTACHMENT TO IBM'S TRADITION OF LIFETIME EMPLOYMENT MEANT HE SPENT MONTHS RETRAINING THEM FOR SALES JOBS THAT ALMOST ALL HAVE SINCE LEFT ANYWAY HE CUT SOME MORE JOBS IN 1987 BUT AGAIN ERRED BY ASKING PEOPLE TO VOLUNTEER TO GO HE STARTED AN EXODUS OF TALENT THAT CONTINUES TO THIS DAY IT WAS THE LOWERRANKED MORE TIMID IBMERS WHO STAYED WHEN MR AKERS FAILED TO GET AHEAD OF HIS PROBLEMS THEY RACED OUT OF CONTROL HE WENT FROM TAKING A MODEST WRITEOFF IN 1987 TO A BIG ONE IN 1989 TO A HUGE ONE IN 1991 TO WRITEOFFS LAST YEAR ROUGHLY EQUIVALENT TO THE GROSS NATIONAL PRODUCT OF ECUADOR FOR IBM TO RECOVER IT HAS TO GO OUTSIDE AND NOT JUST IN THE TOP JOB CERTAINLY IBM CAN'T TURN TO THE TWO INTERNAL CANDIDATES NOW GIVEN THE BEST SHOT AT THE JOB NED LAUTENBACH WHO HAS IBM'S INTERNATIONAL OPERATIONS REPORTING TO HIM HAS FAILED UPWARD FOR YEARS NOW IBM'S DEALINGS WITH PERSONALCOMPUTER DEALERS WERE A MESS WHEN HE RAN THE DIVISION RESPONSIBLE FOR THOSE RELATIONS HE LET IBM'S APPLICATIONS SOFTWARE BUSINESS GET BLOATED WHEN HE RAN THAT AND MADE A STRING OF BAD INVESTMENTS WHEN MOST RECENTLY HE RAN IBM'S ASIAN OPERATIONS THEY WENT THROUGH THEIR WORST PERIOD IN YEARS THE OTHER CANDIDATE BOB LABANT WHO RUNS IBM'S US OPERATIONS HAS BEEN PUT THROUGH A SERIES OF CUSHY JOBS WHERE HE'S NEVER HAD TO TURN ANYTHING AROUND WHEN FORMER IBM EXECUTIVES INCLUDING SOME FRIENDS ARE ASKED ABOUT HIS QUALIFICATIONS FOR THE TOP JOB THEY SAY WELL HE'S AN AWFULLY NICE GUY MR CARROLL IS A WALL STREET JOURNAL REPORTER ON LEAVE TO DO A BOOK ON IBM'S TROUBLES BIG BLUES WILL BE PUBLISHED BY CROWN LATER THIS YEAR 9301280015 930128 COMAIR PILOTS REJECT CONTRACT CINCINNATI COMAIR HOLDINGS INC'S PILOTS' UNION REJECTED A TENTATIVE CONTRACT AGREEMENT BETWEEN PILOT NEGOTIATORS AND COMAIR MANAGEMENT WITH APPROXIMATELY 96 OF PILOTS VOTING 94 VOTED TO REJECT THE AGREEMENT REACHED DEC 6 SAID THE AIR LINE PILOTS ASSOCIATION WHICH REPRESENTS ABOUT 600 COMAIR PILOTS COMAIR HAD NO COMMENT ON THE VOTE THE FIRST SINCE NEGOTATIONS BEGAN LAST MARCH COMAIR SERVES 63 CITIES IN THE US CANADA AND THE BAHAMAS WITH HUBS IN CINCINNATI AND ORLANDO FLA 9301280014 930128 KEYCORP CLEARED ON ACQUISITION ALBANY NY KEYCORP SAID IT RECEIVED REGULATORY CLEARANCES TO ACQUIRE NATIONAL SAVINGS BANK OF ALBANY IN A SWAP OF STOCK NATIONAL SAVINGS SHAREHOLDERS WILL RECEIVE 0883 KEYCORP COMMON SHARE FOR EACH OF THEIR SHARES THE TWO BANKS SAID THE TRANSACTION WAS CLEARED BY THE FEDERAL RESERVE BOARD JAN 19 9301280013 930128 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 ACT III THEATERS INC 85 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 1 2003 PRICED LATE TUESDAY AT PAR TO YIELD 11875 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH KIDDER PEABODY & CO THE ISSUE IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP DISCOVER 748 MILLION OF CREDIT CARD PASSTHROUGH CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC BOTH PARTS OF THE DEAL CONTAINED SENIOR AND SUBORDINATE CLASSES THE 495 MILLION DISCOVER CARD TRUST 1993A CONSISTS OF 450 MILLION IN SENIOR CERTIFICATES AND 45 MILLION IN SUBORDINATE CERTIFICATES THE 450 MILLION SENIOR CLASS A CERTIFICIATES WERE PRICED AS 625 AT 99681 TO YIELD 635 A 60 BASIS POINT SPREAD ABOVE THE WHENISSUED FIVEYEAR TREASURY THE 45 MILLION IN SUBORDINATE CLASS B CERTIFICATES WERE PRICED AS 68 AT 99677 TO YIELD 691 A 95 BASIS POINT SPREAD ABOVE THE 7 1/8S TREASURY OF OCTOBER 1998 THE 253 MILLION DISCOVER CARD TRUST 1993B CONSISTED OF 230 MILLION IN SENIOR CERTIFICATES AND 23 MILLION IN SUBORDINATE CERTIFICATES THE 230 MILLION SENIOR CLASS A CERTIFICATES WERE PRICED IN A SEVENYEAR SOFT BULLET STRUCTURE AS 675 AT 99575 TO YIELD 678 A 65 BASIS POINT SPREAD ABOVE THE 6 3/8S OF JANUARY 2000 THE 23 MILLION SUBORDINATE CLASS B CERTIFICATES WERE PRICED IN A 71YEAR SOFT BULLET STRUCTURE AS 710 AT 99568 TO YIELD 475 A 100 BASIS POINT SPREAD ABOVE THE 6 3/8S OF JANUARY 2000 DISCOVER IS A UNIT OF SEARS ROEBUCK & CO FUND AMERICAN ENTERPRISES HOLDINGS INC 135 MILLION OF NOTES DUE FEB 1 2003 PRICED AS 775 AT 9941 TO YIELD 7836 THE NONCALLABLE NOTES WERE PRICED AT SPREAD OF 1375 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED BAA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GEORGIA POWER CO 160 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 795S AT 9851 TO YIELD 8083 THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE OFFERING IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO BIOSURFACE TECHNOLOGY INC INITIAL 25 MILLION COMMON SHARES OFFERED AT 12 A SHARE HAMBRECHT & QUIST INC AND COWEN & CO ARE THE MANAGING UNDERWRITERS FOR THE OFFERING DF&R RESTAURANTS INC INITIAL TWO MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC TEJAS POWER CORP THREE MILLION CLASS A COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO WELLPOINT HEALTH NETWORKS INC INITIAL 17 MILLION COMMON SHARES PRICED AT 28 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WESTERN DIGITAL CORP FIVE MILLION COMMON SHARES PRICED AT 8 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP NORTH CAROLINA MEDICAL CARE COMMISSION 681 MILLION SERIES 1993 HOSPITAL REVENUE BONDS PRICED BY A FIRST BOSTON CORP GROUP THIS OFFERING WHICH IS FOR THE REX HOSPITAL PROJECT HAS YIELDS WHICH RANGE FROM 310 IN 1994 TO 633 IN 2017 ZEROCOUPON BONDS DUE IN 2005 AND 2006 HAVE BEEN PRICED TO YIELD 620 AND 630 RESPECTIVELY AT THEIR MATURITIES MOODY'S RATED THE ISSUE SINGLEA1 S&P ASSIGNED A SINGLEAPLUS RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A SINGLEAPLUS RATING TRINITY RIVER AUTHORITY TEXAS 20985 MILLION SERIES 1993 REGIONAL WASTEWATER SYSTEM REVENUE REFUNDING BONDS PRICED BY A DILLON READ & CO GROUP YIELDS RANGE FROM 250 IN 1993 TO 613 IN 2011 AND 2016 INSURED BY AMBAC INDEMNITY CORP THE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY FIRST BOSTON THE OFFERING SERIES GOLD 1478 IS BACKED BY FREDDIE MAC'S 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 720 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD 1477 IS BACKED BY FREDDIE MAC'S GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS CREDIT LOCAL DE FRANCE FRANCE 150 MILLION SWISS FRANCS OF 5 1/4 PUBLICLY LISTED BONDS DUE MARCH 17 2003 PRICED AT 101 1/2 VIA SWISS VOLKSBANK FEES 2 3/8 REPUBLIC OF FINLAND SOVEREIGN 6 3/4 GLOBAL BONDS DUE NOV 24 1997 AT FIXED INITIAL OFFER PRICE 101573 VIA MERRILL LYNCH INTERNATIONAL JP MORGAN SECURITIES AND NOMURA INTERNATIONAL PLC YIELD 635 ANNUALLY MARGIN 63 BASIS POINTS ABOVE COMPARABLE US TREASURY AT LAUNCH FEES 1/4 ST GEORGE BANK LTD AUSTRALIA 75 MILLION OF FLOATINGRATE NOTES DUE FEB 18 2000 AT 9980 VIA LEAD UNDERWRITER BANKERS TRUST INTERNATIONAL COUPON TO FLOAT 045 POINT ABOVE THE THREEMONTH LIBOR THE NOTES ARE CALLABLE AND PUTTABLE ANNUALLY FROM THE FOURTH ANNIVERSARY COMMISSIONS 0325 YAMATAKEHONEYWELL CO JAPAN 100 MILLION OF 2 1/2 EUROBONDS DUE FEB 19 1997 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM MARCH 2 1993 TO FEB 20 1997 TO BUY COMPANY SHARES AT 2 1/2 PREMIUM ABOVE CLOSING SHARE PRICE ON FEB 2 WHEN FINAL TERMS FIXED FEES 2 1/4 9301280012 930128 EQUIFAX RAISES PAYOUT SETS STOCK BUYBACK OF UP TO 75 MILLION ATLANTA EQUIFAX INC RAISED ITS QUARTERLY DIVIDEND AND SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MUCH AS 75 MILLION OF THE COMPANY'S COMMON STOCK OVER A TWOYEAR PERIOD THE PLANNED BUYBACK FOLLOWS A SELFTENDER OFFER MADE BY EQUIFAX IN THE 1992 FOURTH QUARTER IN WHICH THE PROVIDER OF INFORMATION FOR CONSUMER FINANCIAL TRANSACTIONS OFFERED TO REPURCHASE AS MANY AS 105 MILLION SHARES OF ITS COMMON THE OFFER EXPIRED DEC 15 AND RESULTED IN THE COMPANY BUYING BACK 66 MILLION SHARES AT 1925 A SHARE EQUIFAX SAID THAT WHILE IT CONSIDERED THE RECENT BUYBACK SUCCESSFUL ITS INTENT WAS TO LOWER ITS COST OF CAPITAL BY ADDING ABOUT 200 MILLION OF DEBT TO ITS CAPITAL STRUCTURE THE NEW REPURCHASE PLAN THE COMPANY SAID SHOULD ENABLE IT TO COMPLETE ITS RECAPITALIZATION THE DECISION TO INCREASE THE DIVIDEND TO 14 CENTS FROM 13 CENTS EQUIFAX SAID WAS BASED ON A STRONG EARNINGS PERFORMANCE IN 1992 AND ITS OUTLOOK FOR 1993 THE DIVIDEND IS PAYABLE MARCH 15 TO HOLDERS OF RECORD FEB 22 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE EQUIFAX SHARES WERE QUOTED AT 19875 DOWN 125 CENTS 9301280011 930128 POLITICS & POLICY GOP HOPES TO PICK A PARTY CHAIRMAN WHO CAN HELP CALM TROUBLED WATERS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPUBLICANS GATHER TODAY FOR THEIR FIRST NATIONAL MEETING SINCE BEING BUSHWHACKED IN THE ELECTION AND THE TROOPS ARE A LITTLE CRANKY HERE'S ONE SIGN OF JUST HOW CRANKY NOT LONG AGO SPENCER ABRAHAM AS A LEADER OF THE REPUBLICAN HOUSE CAMPAIGN COMMITTEE PUT 57 OF THE PARTY'S ESTABLISHED POLITICAL PROS OUT OF WORK WHEN HE CANCELED THE CONTRACTS THEY HAD TO HELP RUN GOP CONGRESSIONAL CAMPAIGNS THIS WEEK HE'S NOT ONLY WEARING THAT AS A BADGE OF HONOR BUT IS MAKING IT ONE OF THE MAIN ARGUMENTS FOR PUTTING HIM IN CHARGE OF THE NATIONAL PARTY APPARATUS MR ABRAHAM IS ONE OF FIVE MEN VYING TO BECOME THE NEW PARTY CHAIRMAN WHEN THE REPUBLICAN NATIONAL COMMITTEE MEETS IN ST LOUIS THROUGH THIS WEEKEND THE RACE TO PICK SOMEONE TO HELP LEAD REPUBLICANS OUT OF THE POLITICAL WILDERNESS IS A REFLECTION OF THE TUMULTUOUS STATE OF THE REPUBLICAN PARTY ITSELF IT IS FRACTURED UNPREDICTABLE AND CLOUDED BY DEBATE OVER HOW MUCH POWER SHOULD BE CEDED TO THE PARTY'S SURGING RELIGIOUS RIGHT WING IN FACT ABOUT THE ONLY THING THAT SEEMS CLEAR IS THAT REPUBLICANS AROUND THE COUNTRY HAVE LITTLE FAITH LEFT IN THE ESTABLISHED LEADERSHIP WHICH THEY BLAME FOR LETTING BOTH THE PARTY'S SOUL AND ITS MESSAGE SHRIVEL AWAY IN 12 YEARS IN POWER IN WASHINGTON I DON'T THINK THE PARTY NEEDS TO MOVE AT ALL SAYS R JAMES NICHOLSON A NATIONAL COMMITTEEMAN FROM COLORADO THE LEADERSHIP OF THE PARTY NEEDS TO REFOCUS BACK TO THE BASIC TENETS OF THE PARTY AND THOSE CAN BE LISTED ON A 3BY5 CARD THE PROBLEM AT THE MOMENT IS THAT THERE ISN'T REAL AGREEMENT ON WHETHER THOSE TENETS SHOULD BE LIMITED TO THE BREADANDBUTTER REPUBLICAN ISSUES OF SMALL GOVERNMENT LOW TAXES AND LIGHT REGULATION OR WHETHER THEY SHOULD ALSO INCLUDE STANDS AGAINST ABORTION AND GAY RIGHTS VEERING TOO FAR INTO SOCIAL ISSUES RISKS GIVING THE REPUBLICAN PARTY AN INTOLERANT TINGE BUT AT THE SAME TIME SOME PARTY REGULARS DON'T WANT TO GIVE UP THE CHANCE TO LAY CLAIM TO MORAL HIGH GROUND ON SUCH ISSUES AS PRESIDENT CLINTON'S EFFORT TO LEGALIZE GAYS IN THE MILITARY I THINK WE'VE GOT AN AWFUL LOT OF PEOPLE WHO ARE CONCERNED ABOUT THE MORAL DIRECTION THIS COUNTRY IS HEADED IN AND I THINK THIS CONCERN HAS MULTIPLIED WITH THE CLINTON ADMINISTRATION AND THEIR FIRST WEEK IN OFFICE ARGUES CLINTON KEY OKLAHOMA GOP CHAIRMAN NOBODY PRETENDS THAT A PARTY CHAIRMAN WHO HOLDS A POST OF LIMITED POWER AND VISIBILITY CAN SINGLEHANDEDLY SETTLE SUCH EMOTIONAL DEBATES BUT WHEN A PARTY IS OUSTED FROM THE WHITE HOUSE ITS CHAIRMAN ASSUMES A LARGER ROLE IN KEEPING THE TROOPS TOGETHER AND THAT IS GOING TO BE AN ESPECIALLY TOUGH JOB IN THE REPUBLICAN PARTY OVER THE NEXT FEW YEARS MANY REPUBLICANS YEARN TO FIND A CHAIRMAN TO REPLICATE THE LATE1970S PERFORMANCE OF BILL BROCK THE FORMER TENNESSEE SENATOR WHO BOTH LED A SUCCESSFUL GRASSROOTS ORGANIZING CAMPAIGN AND CREATED A KIND OF NATIONAL GOP THINK TANK WHERE THE IDEAS THAT FLOWERED INTO REAGANOMICS TOOK ROOT FINDING SUCH A FIGURE IS PARTICULARLY IMPORTANT TO MODERATE REPUBLICANS WHO FEAR THAT THE GROWING POWER OF SOCIAL CONSERVATIVES AT THE GRASS ROOTS COULD TURN OFF OTHER VOTERS AND LEAD TO A DISASTROUS NARROWING OF THE PARTY'S BASE SINCE BILL BROCK WE HAVEN'T SEEN A CHAIRMAN WHO IS REALLY AN ACTIVIST IN BROADENING THE INVOLVEMENT OF THE PEOPLE IN THE PARTY SAYS SEN NANCY KASSEBAUM OF KANSAS SHE IS PART OF A NEW ORGANIZATION OF MODERATE REPUBLICANS WHO WANT TO STEER THE PARTY OUT OF DIVISIVE FIGHTS OVER ABORTION AND OTHER SOCIAL ISSUES THE TRICK FOR THE FIVE MEN WHO WANT TO SUCCEED RICH BOND AS PARTY CHAIRMAN THEN IS TO SHOW THEY REPRESENT A BREAK WITH THE PAST REPRESENTED BY GEORGE BUSH BUT DON'T REPRESENT A STEP TOWARD A FUTURE DOMINATED BY A RELIGIOUS RIGHT THAT SCARES THE PARTY MAINSTREAM THE ABILITY OF REPUBLICANS TO CHOOSE A CHAIRMAN WHO FINDS A MIDDLE GROUND MAY BE A LEADING INDICATOR OF WHERE THE PARTY IS HEADING THE THREE LEADING CANDIDATES FOR THE CHAIRMAN'S JOB ARE HALEY BARBOUR A MISSISSIPPI NATIONAL COMMITTEEMAN AND FORMER REAGAN POLITICAL AIDE JOHN ASHCROFT FORMER MISSOURI GOVERNOR AND MR ABRAHAM A ONETIME AIDE TO DAN QUAYLE WHO SAYS HE TOOK A STAND AGAINST THE PARTY ESTABLISHMENT BY CANCELING THE CONTRACTS OF CONGRESSIONAL POLITICAL CONSULTANTS AND USING THE MONEY IN INDIVIDUAL RACES AROUND THE NATION THE TWO OTHER CANDIDATES ARE BO CALLAWAY A FORMER GEORGIA CONGRESSMAN AND ARMY SECRETARY AND OREGON PARTY CHAIRMAN CRAIG BERKMAN TO COMPLICATE THE PICTURE FURTHER SEN BOB DOLE OF KANSAS THE SENATE MINORITY LEADER HAS FLOATED THE IDEA OF GIVING HIS ALLY KENTUCKY SEN MITCH MCCONNELL THE HONORIFIC TITLE OF GENERAL PARTY CHAIRMAN AND PICKING ONE OF THE OTHER CONTENDERS TO RUN THE PARTY'S DAILY OPERATIONS BUT THAT IDEA DOESN'T SEEM TO HAVE CAUGHT FIRE AND FOR NOW MR BARBOUR APPEARS A SLIGHT FAVORITE TO BECOME THE NEW CHAIRMAN JUST AHEAD OF MR ABRAHAM MR BARBOUR MAKES IT CLEAR THAT A TOP ORDER OF BUSINESS FOR HIM WOULD BE TO MOVE REPUBLICANS AWAY FROM THE IMAGE THEY DEVELOPED IN 1992 AS A PARTY INTOLERANT OF VOTERS WHO FAVORED ABORTION RIGHTS IF WE LET ABORTION BECOME THE THRESHOLD ISSUE OF REPUBLICANISM WE NEED OUR HEADS EXAMINED HE DECLARES IN ESSENCE HE ARGUES THAT REPUBLICANS SHOULD RECLAIM THE ISSUES OF LOW TAXES REDUCED REGULATION AND INDIVIDUAL LIBERTY WHILE DEEMPHASIZING ISSUES THAT CREATE SPLITS THOUGH HE SAYS HE'S ANTIABORTION PERSONALLY HE PLEDGES TO EMPHASIZE THE ISSUES THAT UNITE US AND SUBMERGE ABORTION TO ITS RIGHTFUL PLACE AMONG ALL THE ISSUES FACING THE COUNTRY BUT THE RACE FOR CHAIRMAN IS SO FRACTURED THAT IT SEEMS UNLIKELY THAT MR BARBOUR OR ANYONE ELSE HAS ENOUGH VOTES TO WIN IN ONE BALLOT THAT MEANS THERE COULD BE A PROLONGED DEBATE AND MANEUVERING OVER SEVERAL BALLOTS BEFORE A WINNER IS CHOSEN REGARDLESS OF HOW MUCH MANEUVERING THERE IS THE RACE ITSELF IS SHEDDING LIGHT ON THE MOOD OF STATE PARTY LEADERS WHO WILL ELECT THE NEW CHAIRMAN THIS WEEKEND THE TWO ATTRIBUTES THAT LEAST APPEAL TO THESE REPUBLICAN ACTIVISTS ARE CLOSE TIES TO REIGNING PARTY BIG SHOTS AND ALLEGIANCE TO THE RELIGIOUS RIGHT THAT IN FACT GOES A LONG WAY IN EXPLAINING WHY MISSOURI'S MR ASHCROFT A WIDELY RESPECTED FORMER GOVERNOR HASN'T ATTRACTED AS MUCH SUPPORT AS PARTY PROS ONCE EXPECTED SOME REPUBLICANS VIEW HIM AS A SYMBOL OF THE DISCREDITED PARTY ESTABLISHMENT AN IMPRESSION DRIVEN HOME BY HIS STRATEGY OF ACCUMULATING ENDORSEMENTS FROM MANY SITTING GOVERNORS AND OTHER PARTY LEADERS IN THIS KIND OF ELECTION DON'T COME IN AS A BIG SHOT SUPPORTED BY BIG SHOTS SAYS FORMER MINNESOTA REP VIN WEBER A LEADING PARTY CONSERVATIVE MR ASHCROFT ALSO HELPED DRAFT LAST YEAR'S GOP PLATFORM WHICH NOW IS FAULTED BY SOME REPUBLICANS FOR TURNING OFF VOTERS WITH TOUGH LANGUAGE ON ABORTION AND OTHER SOCIAL ISSUES BUT MR ASHCROFT ASSERTS THAT HE ENVISIONS A REPUBLICAN PARTY ANIMATED BY CONVICTION CHARACTERIZED BY TOLERANCE SIMILARLY MR BARBOUR'S CRITICS COMPLAIN THAT ALTHOUGH HE IS RUNNING AS A GRASSROOTS ACTIVIST FROM YAZOO CITY MISS HE ALSO IS A WELLPAID WASHINGTON LAWYER AND LOBBYIST TIED TO THE CAPITAL'S TRADITIONAL POWER BROKERS IF HALEY WINS IT'S BUSINESS AS USUAL AND I THINK A LOT OF US WILL UNFORTUNATELY HAVE TO LOOK OUTSIDE THE PARTY APPARATUS TO FIND ANY KIND OF INTELLECTUAL NOURISHMENT SAYS WILLIAM KRISTOL WHO WAS VICE PRESIDENT QUAYLE'S CHIEF OF STAFF AND NOW IS ACTING AS CAMPAIGN MANAGER FOR MR ABRAHAM 9301280010 930128 WHO'S NEWS BCE NAMES WILSON CHAIRMAN MONTREAL BCE INC SAID VJ RAYMOND CYR WILL RETIRE AS CHAIRMAN APRIL 1 AND BE SUCCEEDED BY LR WILSON WHO WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR CYR WHO TURNS 59 YEARS OLD NEXT MONTH WILL CONTINUE AS DIRECTOR AND SENIOR ADVISER TO THE COMPANY AND WILL CONTINUE TO SERVE PART TIME AS NONEXECUTIVE CHAIRMAN OF THE COMPANY'S BELL CANADA BCE MOBILE COMMUNICATIONS INC AND TELESAT CANADA UNITS AND AS CHAIRMAN OF THE BCE CANADIAN TELECOM GROUP HE WILL ALSO CONTINUE TO REPRESENT BCE ON THE BOARDS OF A NUMBER OF SUBSIDIARIES A COMPANY SPOKESMAN SAID MR CYR HAD STATED ON SEVERAL OCCASIONS THAT HE INTENDED TO RETIRE BEFORE AGE 60 HE PLANS TO DEVOTE MORE TIME TO PERSONAL AND COMMUNITY INTERESTS IN MONTREAL THE COMPANY SAID MR WILSON 52 JOINED BCE AS PRESIDENT AND CHIEF OPERATING OFFICER IN 1990 AND WAS NAMED CHIEF EXECUTIVE LAST APRIL 9301280009 930128 BUSINESS BRIEF UNOCAL CORP COMPANY TO BOOST OUTPUT IN ALASKA FOR 119 MILLION UNOCAL CORP SAID IT WILL SPEND 119 MILLION OVER THE NEXT THREE YEARS TO MORE THAN DOUBLE PRODUCTION FROM ITS OIL PROPERTIES IN ALASKA'S COOK INLET THE LOS ANGELES OIL COMPANY SAID IT EXPECTS TO DRILL 20 NEW DEVELOPMENT WELLS FROM FOUR EXISTING PLATFORMS BOOSTING THE DAILY OUTPUT FROM UNOCAL'S TWO COOK INLET OIL FIELDS TO ABOUT 11000 BARRELS OF CRUDE OIL FROM 4000 THE COMPANY ACQUIRED SOLE OWNERSHIP OF THE FIELDS GRANITE POINT AND MIDDLE GROUND SHOAL THROUGH A SERIES OF TRANSACTIONS WITH AMOCO CORP CHEVRON CORP AND TEXACO INC BEGINNING JULY 1990 AND ENDING DECEMBER 1991 EACH OF THE FIELDS CONTAINS TWO OIL PLATFORMS A UNOCAL SPOKESWOMAN SAID 95 OF THE 119 MILLION WOULD BE SPENT ON DRILLING THE NEW WELLS AND THE PURCHASE OF A 20 MILLION OIL RIG 9301280008 930128 MINING COMPANIES POST DROP IN RESULTS FOR FOURTH QUARTER A WALL STREET JOURNAL NEWS ROUNDUP THREE MINING COMPANIES ASARCO INC NEWMONT MINING CO AND NEWMONT GOLD CO REPORTED FOURTHQUARTER RESULTS LOWER THAN A YEAR AGO AS LOWER METAL PRICES CONTINUED TO HURT NEW YORKBASED ASARCO POSTED A LOSS OF 58 MILLION OR 140 A SHARE COMPARED WITH NET INCOME OF 123 MILLION OR 30 CENTS A SHARE A YEAR EARLIER SALES FELL 4 TO 4719 MILLION FROM 493 MILLION THE LATEST LOSS INCLUDED CHARGES OF 667 MILLION IN THE QUARTER AND THE YEAR FOR ADOPTION OF A NEW ACCOUNTING RULE ENVIRONMENTAL CHARGES AND THE REDUCTION OF BOOK VALUE OF SOME PLANTS AND EQUIPMENT ASARCO'S STOCK FELL 50 CENTS TO 26 ON THE NEW YORK STOCK EXCHANGE YESTERDAY ANALYSTS EXPECTED THE LOWER EARNINGS JOHN TUMAZOS AN ANALYST AT DONALDSON LUFKIN & JENRETTE IN NEW YORK SAID THEY HAVEN'T HAD ANY LUCK WITH COMMODITY PRICES ASARCO PRODUCES COPPER ZINC LEAD SILVER AND GOLD NEWMONT MINING DENVER POSTED NET OF 39 MILLION OR THREE CENTS A SHARE DOWN 83 FROM 227 MILLION OR 33 CENTS A SHARE A YEAR EARLIER SALES DROPPED 10 TO 1409 MILLION FROM 1559 MILLION THE GOLD PRODUCER CITED GOLD PRICES THAT DROPPED TO AN AVERAGE PRICE OF 362 AN OUNCE IN THE QUARTER FROM 386 AN OUNCE A YEAR EARLIER EARNINGS WERE ALSO HURT BY HIGHER INTEREST AND EXPLORATION EXPENSES LOWER GOLD PRODUCTION AND HIGHER OPERATING EXPENSES AT ITS 901OWNED NEWMONT GOLD CO ALSO CONTRIBUTED TO THE RESULTS THE COMPANY SAID 9301280007 930128 DOWN DRAFT MCDONNELL FINDS IT EVER HARDER TO COPE IN AIRLINER BUSINESS LACK OF ORDERS NEW MODELS RAISES DOUBTS ON FUTURE OF COMMERCIALJET UNIT CHAIRMAN WE'RE IN IT TO STAY BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE NEWS ON THE GLOBAL AVIATION FRONT IS GROWING GRIMMER CARRIERS ARE SLASHING ROUTES AIRPLANE ORDERS AND JOBS AIRCRAFT AND ENGINE MANUFACTURERS ARE CUTTING PRODUCTION AND IDLING WORKERS EVEN THE LARGEST OF THE OLDSTANDBY LEASING COMPANIES WHICH IN TOUGH TIMES USUALLY BRIDGE THE FINANCING GAP BETWEEN BUYER AND SELLER IS TOTTERING THE BLEAK NEWS INEVITABLY RAISES QUESTIONS ABOUT THE STAYING POWER OF THE WEAKEST MANUFACTURER OF COMMERCIAL JETLINERS MCDONNELL DOUGLAS CORP ITS VENERABLE DOUGLAS AIRCRAFT CO DIVISION HAS BEEN LOSING ORDERS MONTH AFTER MONTH TO BOEING CO AND THE EUROPEAN AIRBUS INDUSTRIE CONSORTIUM LAST YEAR IN FACT IT MANAGED TO PICK UP ONLY A SINGLE NET ORDER FOR ITS FLAGSHIP MD11 BUT BEYOND THE CURRENT ORDER BOOK LIE A PLETHORA OF OTHER PROBLEMS FOR MCDONNELL DOUGLAS THE COLLAPSE LAST YEAR OF ITS DEAL TO GET AS MUCH AS 2 BILLION IN TAIWANESE INVESTMENTS DELAY AFTER DELAY IN PLANS TO OFFER NEW MODELS TO FILL IN ITS PRODUCT LINE AND A GENERAL UNWILLINGNESS TO PLAN THE NEWGENERATION AIRLINERS THAT ENTAIL THE GREATEST DEVELOPMENT EXPENSE THE FAILURE TO MATCH THE FINANCIAL ENTICEMENTS OF ITS WEALTHY RIVALS IN THE SALE OF AIRCRAFT IN AN INCREASINGLY COMPETITIVE MARKET THE PROSPECT THAT ITS ORIGINAL PLAN TO CUT BACK PRODUCTION AND HOLD IT AT LOW LEVELS UNTIL WORLDWIDE ORDERS TURN UP AGAIN COULD BE RUINED BY AN EXTENDED RECESSION IN THE AIRLINE BUSINESS MCDONNELL DOUGLAS SAYS EMPHATICALLY THAT IT IS IN THE AIRLINER BUSINESS FOR THE LONG HAUL I RECOGNIZE THE PERCEPTION OUT THERE IS WE'RE GOING OUT OF THE BUSINESS SAYS CHAIRMAN JOHN F MCDONNELL BUT HE DECLARES WE'RE NOT IN THE PROCESS OF GOING OUT OF THE BUSINESS WE'RE IN THE PROCESS OF CONSTRUCTING THE BUSINESS IN A WAY THAT WE CAN STAY IN IN THE LONGER TERM YET INDUSTRY OBSERVERS NOTE THAT LOCKHEED CORP JUST MONTHS BEFORE PULLING OUT OF THE JETLINER BUSINESS IN LATE 1981 WAS GIVING PUBLIC ASSURANCES SIMILAR TO MR MCDONNELL'S DOUBTS ABOUT MCDONNELL'S STAYING POWER MIGHT SEEM STRANGE AT A TIME WHEN THE COMPANY'S AIRLINER UNIT REMAINS PROFITABLE EXCEPT THAT SOME OF THE REASONS FOR THE PROFITABILITY AREN'T ENCOURAGING PRODUCTION BASED ON A BACKLOG OF AIRCRAFT ORDERS TAKEN YEARS AGO CUTBACKS IN CURRENT SPENDING ON DEVELOPMENT OF NEW JETLINERS AND SUBSTANTIAL LAYOFFS AMONG OTHER COSTSHAVING MEASURES THE FUTURE OF OPERATIONS IN LONG BEACH CALIF THE NEXUS OF DOUGLAS AIRCRAFT FACILITIES LOOKS DIM EARLIER THIS MONTH FOR INSTANCE THE UNIT LOST A HARDFOUGHT CONTEST FOR ONE OF THE YEAR'S BIGGEST ORDERS ONE IT SHOULD HAVE HAD A GOOD CHANCE TO WIN FROM UNITED PARCEL SERVICE OF AMERICA INC THE PACKAGE HAULER ELECTED TO BUY 30 BOEING JETS VALUED AT 24 BILLION STEAD OF MD11S TWO MONTHS AGO DOUGLAS WAS NEARLY SHUT OUT OF A HUGE 46 BILLION ORDER BY LEASING GIANT INTERNATIONAL LEASE FINANCE CORP A BEVERLY HILLS CALIF UNIT OF AMERICAN INTERNATIONAL GROUP INC WHILE BOEING AND AIRBUS LOGGED AN ESTIMATED 270 ORDERS LAST YEAR EVEN AFTER ACCOUNTING FOR NUMEROUS ORDER DEFERRALS AND CANCELLATIONS FROM RECESSIONSTRUCK CARRIERS HARDERHIT DOUGLAS ENDED 1992 WITH ONLY 36 ORDERS THE LONE MD11 AND 35 SMALLER TWINJETS WITH ITS ORDER BOOK AND BACKLOG DRYING UP THE DOUGLAS UNIT HAS FEVERISHLY CHOPPED 21000 JOBS IN THE LAST THREE YEARS AND IT PLANS TO CUT AS MANY AS 5000 MORE JOBS FROM THE WORK FORCE THIS YEAR IT ALSO HAS SHARPLY SCALED BACK EFFORTS ONCE DESCRIBED AS CRUCIAL TO FILL GAPING HOLES IN ITS PRODUCT LINE WITH A LONGRANGE 430SEAT MD12 JUMBO JET AND A SMALLER 100SEAT PLANE SUCH MOVES RAISE A SPECIAL KIND OF PROBLEM WITH CUSTOMERS NOT ONLY DO THEY HAVE TO CONVINCE THE AIRLINES THAT THEIR HARDWARE IS GOOD SAYS STEVEN UDVARHAZY PRESIDENT OF INTERNATIONAL LEASE BUT THEY ALSO MUST CONVINCE THEM THAT THE COMPANY HAS A LONGTERM COMMITMENT TO COMMERCIAL AVIATION AND WILL STAND BEHIND THE PRODUCT AND THAT IS SOMETIMES TOUGHER MAKING THE COMMERCIAL BUSINESS LOOK EVEN MORE PROBLEMATIC IS THE FACT THAT ST LOUISBASED MCDONNELL DOUGLAS'S OTHER BUSINESSES SEEM TO BE STABILIZING AS MAKER OF THE F15 AND F/A18 FIGHTERS AMONG OTHER WARPLANES THE COMPANY REMAINS THE NATION'S LARGEST CONTRACTOR IN THE CONSOLIDATING DEFENSE INDUSTRY DOUGLAS AIRCRAFT FOUNDED IN CALIFORNIA MORE THAN 70 YEARS AGO WAS A LEADER IN THE JETLINER INDUSTRY THROUGH THE 1970S THANKS TO ITS VENERABLE DC8S DC9S AND DC10S THE YEARS SINCE ITS 1967 MERGER WITH MCDONNELL AIRCRAFT CO KNOWN MAINLY FOR ITS PRODUCTION OF FIGHTERS HAVE BEEN MARKED BY A REPEATED FAILURE OF THE ST LOUIS MANAGERS TO RUN DOUGLAS'S WEST COAST OPERATION EFFICIENTLY IT WASN'T LONG AFTER THE MERGER THAT DOUGLAS QUIT INVESTING IN ALLNEW AIRCRAFT TYPES MCDONNELL DOUGLAS SETTLED INSTEAD FOR UPGRADING THE THREEENGINE DC10 INTO THE MD11 AND FOR SOUPING UP THE DC9 TO PRODUCE THE MD80 DERIVATIVE AND A LARGER MD90 COUSIN NOW ENTERING PRODUCTION ANOTHER JET ON THE DRAWING BOARD A 100SEAT MD95 AIRLINER THAT DOUGLAS AIRCRAFT PLANNED TO COPRODUCE WITH CHINA HAS BEEN PLACED ON HOLD ACCORDING TO ROBERT HOOD JR PRESIDENT OF DOUGLAS AIRCRAFT BOEING AND AIRBUS MEANWHILE HAVE EXPANDED AGGRESSIVELY INTO NEW JET MODELS BOEING AND THE FOUR PARTNERS IN AIRBUS ACTING INDEPENDENTLY UNVEILED YESTERDAY A PLAN TO JOIN IN STUDYING DEVELOPMENT OF A 600SEAT SUPERJUMBO JET AND THE NEW BOEING AND AIRBUS PRODUCTS HAVE ATTRACTED THE WORLD'S AIRLINES EVEN AS THE CARRIERS HAVE HAD TO MAKE HARD DECISIONS ABOUT SLOWING DOWN DELIVERY SCHEDULES AND CANCELING EXCESSIVE ORDERS WHEN MCDONNELL DOUGLAS BALKED AT A FINANCIAL RESTRUCTURING PROPOSAL FOR IRISH AIRCRAFT LEASING COMPANY GPA GROUP PLC FOR INSTANCE ITS OBJECTIONS DIDN'T DERAIL THE LESSOR'S ADVANCING PLANS THAT'S BECAUSE OF THE 250 LARGE JETLINERS GPA HAS ON ORDER ONLY 27 ARE MCDONNELL DOUGLAS PLANES TO LEAD THE MARKETING PUSH FOR ITS COMMERCIAL JETS MCDONNELL DOUGLAS HAS MADE AN UNUSUAL CHOICE FOR WHAT IS ARGUABLY THE COMMERCIAL AIRCRAFT INDUSTRY'S TOUGHEST JOB IT SELECTED DAVID HINSON THE 59YEAROLD FORMER CHAIRMAN OF FAILED MIDWAY AIRLINES HIS OUTLOOK IS GLOWINGLY POSITIVE LET'S LOOK AT THE FACTS HE URGES NOT WISHFUL THINKING MR HINSON SAYS DOUGLAS'S STURDY JETS INVITE LESS CONCERN AS FLEETS AGE THAN DO PLANES OF ANY OTHER MANUFACTURER OLDER MD11S ARE STEADILY INCREASING IN VALUE BECAUSE OF THEIR USEFULNESS TO AIRLINES HE ADDS AND NOT A SINGLE ONE OF THE 518 DC10 AND SUCCESSOR MD11 JETS IS GROUNDED TODAY DESPITE THE FINANCIAL PRESSURE ON CARRIERS NARROWBODY DC9S AND MD80S MEANWHILE HAVE THE HIGHEST RATINGPERIOD HE SAYS WHEN IT COMES TO BEING MECHANICALLY READY FOR TAKEOFF DOUGLAS PROBABLY BUILDS AIRPLANES BETTER THAN ANYBODY ELSE AND ALWAYS HAS HE SAYS HIS ENTHUSIASM FOR MCDONNELL DOUGLAS PRODUCTS IS EVIDENT IN THE FIELD AS MR HINSON TROTS THE GLOBE IN SEARCH OF BUSINESS LAST JUNE FOR INSTANCE HE FLEW A SMALL TEAM OF DOUGLAS EXECUTIVES INCLUDING A CELEBRITY MARKETER IN THE LARGER CORPORATION FORMER ASTRONAUT PETE CONRAD ON A COSTLY FLIGHT FROM ZURICH TO SAUDI ARABIA IN AN MD11 BORROWED FROM SWISSAIR THERE THE TEAM EXTOLLED THE JET'S VIRTUES BEFORE MORE THAN 50 OFFICIALS WHO HAVE INFLUENCE OVER THE STATEOWNED SAUDIA AIRLINE AFTER A FULL DAY OF BRIEFINGS THEY WERE STILL FIELDING QUERIES AT 1 AM FROM A HIGHLEVEL MINISTRY OFFICIAL WHO DROPPED BY ON SHORT NOTICE ADNAN DABBAR EXECUTIVE VICE PRESIDENT OF THE PROSPEROUS SAUDI AIRLINE WAS SOMEWHAT IMPRESSED I THINK MCDONNELL DOUGLAS MANAGEMENT AT THIS TIME IS PERHAPS A BIT MORE AGGRESSIVE THAN PREVIOUSLY HE SAYS BUT HE WARNS COMPETITION IS FIERCE INDEED FOR ALL THE TENACITY OF THE MCDONNELL DOUGLAS SALES TEAM AN MD11 SALE TO SAUDI ARABIA WOULD BE A SURPRISE PERHAPS THE ONLY BIG ORDER ON THE HORIZON THIS YEAR THE SAUDI CONTRACT FOR AS MANY AS 60 JETS VALUED AT ABOUT 5 BILLION IS WIDELY EXPECTED TO GO TO EITHER BOEING OR AIRBUS OR BE SPLIT BETWEEN THE TWO COMPETITORS SAY THAT MR HINSON'S ARGUMENTS ARE HARDLY WHAT IT TAKES TO SELL AIRPLANES IN THESE HARSH COMPETITIVE TIMES ROBERT W BAKER EXECUTIVE VICE PRESIDENT OF AMR CORP'S AMERICAN AIRLINES SAYS DOUGLAS IS RIGHT IN ITS CURRENT PROGRAM OF SLASHING COSTS AND SEEKING FINANCIAL PARTNERS THOSE WHO CAN GET THEIR FIXED COSTS DOWN HAVE A CHANCE AS THE VOLUME SLIDES AWAY WHICH IT IS INEVITABLY GOING TO DO HE ADDS AMERICAN IS A LONGTIME BUYER OF DOUGLAS JETS BUT MR BAKER WORRIES THAT DOUGLAS IS CUTTING TOO DEEPLY INTO THE RANKS OF EXPERIENCED PERSONNEL AND WILL SUFFER IN THE LONG RUN FOR DELAYING NEWAIRPLANE DEVELOPMENT AT SOME POINT IN THEORY IT GETS TO WHERE YOU CAN'T BUILD AN AIRPLANE HE SAYS AND WITHOUT BUILDING JETS FOR THE FUTURE YOU MAY SURVIVE THE FIRST ROUND OF BOMBS BUT NOT BE ABLE TO BREATHE WHEN YOU COME OUT THE OTHER SIDE MCDONNELL DOUGLAS DID SET ITS SIGHTS LAST YEAR ON ONE ALLNEW MODEL A SUPERJUMBO MD12 TO BE BUILT IN TAIWAN WITH THE BENEFIT OF THAT COUNTRY'S INVESTMENT BUT PLANS FOR EARLY DEVELOPMENT OF THE DOUBLEDECK MD12 FELL THROUGH NOT LONG AFTER THE TAIWAN DEAL ITSELF FAILED REFLECTING CONCERNS ABOUT THE EXPOSURE OF ANY EQUITY INVESTMENT FROM THE ASIAN NATION MCDONNELL DOUGLAS IS STILL ENGAGED IN AN ALLOUT EFFORT TO GET AN OUTSIDE INVESTMENT PARTNER SOME INDUSTRY PEOPLE SAY THE COMPANY HAS ASKED ITS ITALIAN PARTS SUPPLIER ALENIA TO BUY A MINORITY SLICE OF DOUGLAS AIRCRAFT AND HELP IT MEET THE 1 BILLION COST OF DEVELOPING A STRETCHED MD11 INSTEAD OF THE BIGGER MOREEXPENSIVE MD12 LONGTIME SUPPLIER MITSUI OF JAPAN AND SOME TAIWAN INTERESTS ARE SAID TO BE OTHER TARGETED MINORITY INVESTORS AN ALENIA SPOKESMAN SAYS SUCH AN INVESTMENT ISN'T BEING CONTEMPLATED MR MCDONNELL SAYS HE BELIEVES THE PERCEPTION THAT HIS COMPANY MAY ABANDON THE JETLINER BUSINESS WILL BE SIGNIFICANTLY CHANGED ONCE THE INITIAL PARTNER COMES ON BOARD HE DECLINES TO DISCUSS SPECIFIC POTENTIAL DEALS THE CHAIRMAN STILL HOPES DOUGLAS WILL ONE DAY RESUME A LEADING ROLE IN THE JETLINER INDUSTRY PERHAPS HE SUGGESTS IT MAY EVEN OUST AIRBUS FROM THE NO 2 SLOT BEHIND BOEING A GOAL IT HAD HOPED TO REACH WITH A MULTIBILLIONDOLLAR TAIWAN INVESTMENT PRIVATELY AIRBUS MANAGERS GUFFAW AT THE NOTION NONETHELESS DESPITE ALL THE BUMPY FLYING RECENTLY THE MD80 AND MD11 PRODUCT LINES BOTH ARE MAKING MONEY AS DOUGLAS DELIVERS PLANES ORDERED SEVERAL YEARS AGO MR HOOD THE DOUGLAS PRESIDENT NOTES THAT THE DIVISION HAS BEEN PROFITABLE OVERALL FOR NINE CONSECUTIVE QUARTERS AND PREDICTS EVERBETTER RESULTS AHEAD AS COSTS DROP WITH THE SHRINKING PAYROLL BUT TO DATE ONLY 173 FIRM ORDERS FOR THE MD11 HAVE BEEN TAKEN IN ITS SEVEN YEARS ON THE MARKET AND 76 OF THOSE HAVE ALREADY BEEN DELIVERED AND LAST WEEK MCDONNELL DOUGLAS REPORTED 1992 OPERATING EARNINGS OF 151 MILLION FOR THE DOUGLAS UNIT OFF 48 FROM THE PRIOR YEAR BY THE END OF 1994 THE PRODUCTION RATE FOR MD11S CURRENTLY AT 42 PLANES A YEAR IS EXPECTED TO BE HALVED WITH MD80 OUTPUT FALLING EVEN MORE SHARPLY TASSOS PHILIPPAKOS AEROSPACE CREDIT ANALYST FOR MOODY'S INVESTORS SERVICE INC SAYS WEAK CASH FLOWS KEEP DOUGLAS FROM OFFERING SORELY NEEDED CUSTOMER FINANCING SUCH AS VALUABLE LOAN GUARANTEES OR FAVORABLE LEASES THAT KEEP AIRCRAFT DEBT OFF THE BOOKS FOR FINANCIALLY PRESSED AIRLINES THEY DO NOT HAVE THE FINANCIAL FLEXIBILITY TO BE A STRONG PARTICIPANT IN THIS MARKET HE SAYS BOEING INCREASED CUSTOMER FINANCING BY 12 BILLION LAST YEAR ALONE INDEED PERHAPS THE DARKEST ASPECT OF LOSING THE UPS ORDER WAS THAT THE PACKAGE CARRIER REQUIRED LITTLE IN THE WAY OF EASY TERMS LEASES OR FINANCIAL BACKING SOMETHING THAT SHOULD HAVE PROVIDED MCDONNELL DOUGLAS WITH A LEVEL PLAYING FIELD IN ITS DUEL WITH BOEING HERBERT J LANESE MCDONNELL DOUGLAS'S CHIEF FINANCIAL OFFICER PERSONALLY WOOED THE PRESIDENT OF UPS'S AIRLINE DICK OEHME THOUGH MR LANESE WAS OPTIMISTIC BEFORE THE UPS DECISION HE NOW REASONS THAT UPS SIMPLY NEEDED A SMALLER JET AND FOUND IT IN BOEING'S NEW CARGO VERSION OF THE 767 UPS SAYS SIMPLY THAT IT MADE THE MOST PRUDENT LONGTERM FLEET DECISION MR LANESE IS WIDELY PERCEIVED INSIDE MCDONNELL DOUGLAS AS BEING RELUCTANT TO GIVE AWAY THE STORE THROUGH FINANCIAL INCENTIVES FOR CUSTOMERS SOME MANAGERS IN FACT SUSPECT HE WANTS TO WIND DOWN THE REMAINING JETLINER PRODUCTION AND QUIETLY END IT ENTIRELY SQUEEZING OUT THE HIGHEST POSSIBLE PROFIT ALONG THE WAY THAT PERCEPTION HAS LED TO SOME FRICTION WITH THE SALES CREW AT DOUGLAS PEOPLE THERE SAY I HAVE NO SECRET AGENDA MR LANESE SAYS BUT YOU HAVE PEOPLE IN THE COMPANY AS YOU DO IN LIFE WHO WANT TO TAKE THE EASY PATH HE MAINTAINS THAT THE ONLY DEALS DOUGLAS MAKES ARE THOSE THAT PROMISE SOLID PROFITS IN ADVANCE I AM ABSOLUTELY THE LEAST UNDERSTANDING GUY YOU'LL EVER MEET ABOUT SELLING PRODUCTS AT A LOSS HE SAYS AT MCDONNELL DOUGLAS THE FALLOFF IN COMMERCIAL JET ORDERS IS TAKING PLACE AGAINST A BACKDROP OF CORPORATE REORGANIZATION THAT HAS STREAMLINED ITS DEFENSE AND AEROSPACE BUSINESSES THE COMPANY'S COSTCUTTING EFFORTS FOLLOW FIVE YEARS IN WHICH 5 BILLION DRAINED FROM THE COMPANY 3 BILLION TO BUILD UP INVENTORY FOR PROGRAMS SUCH AS THE MD11 AND 2 BILLION MORE FOR GROWTH ON FIXEDPRICE CONTRACTS SUCH AS ITS LOSSPLAGUED AND STILLCONTROVERSIAL C17 MILITARYTRANSPORT PROGRAM ASSET SALES AND 1 BILLION IN NEW DEBT HAVE HELPED PAY THE BILLS WITH A 20 COMPANYWIDE CUT IN EMPLOYMENT MAKING UP THE REST ANOTHER 8700 JOBS 10 OF THE TOTAL MCDONNELL DOUGLAS WORK FORCE ARE TO BE CUT IN THE YEAR AHEAD SAYS MR MCDONNELL I DON'T KNOW OF ANY OTHER COMPANY THAT HAS TAKEN THESE DRAMATIC ACTIONS FOR THE FUTURE PERHAPS THE MOST DRAMATIC EVIDENCE OF A DEFENSESIDE TURNAROUND IS IN THE DIVISION THAT MAKES FIGHTERS APACHE HELICOPTERS AND TOMAHAWK MISSILES IGNORING THE C17 WHICH THE COMPANY VOWS WILL BE PROFITABLE THIS YEAR OPERATING PROFITS FOR MILITARY AIRCRAFT IN THAT DIVISION LEAPT 46 LAST YEAR AND THERE WAS A SERIES OF BIG CONTRACT WINS JOHN P CAPELLUPO EXECUTIVE VICE PRESIDENT FOR THE DIVISION SAYS PLANT COSTS DROPPED ABOUT 5 LAST YEAR AND EXPENSES FOR OVERHEAD AND LABOR NOT DIRECTLY INVOLVED IN PRODUCTION PLUNGED BY MORE THAN 20 SO THE WORLD'S AIRLINES AND INDUSTRY ANALYSTS ARE ASKING MIGHTN'T THE PARENT COMPANY BE JUSTIFIED IN SHUTTERING THE AIRLINER BUSINESS OR JUST WRINGING IT FOR THE MONEY TO BE MADE ON EVERDROPPING PRODUCTION AND STICKING TO ITS GUNS IN THE DEFENSE BUSINESS MR LANESE SWEARS HE STANDS FULLY BEHIND THE BOSS'S PLAN TO STAY IN THE JETLINER GAME AND HE SUPPORTS WORTHWHILE EFFORTS TO LAND PROFITABLE SALES INCLUDING THE SAUDI SALES TRIP EVEN THOUGH IT COSTS A LOT BUT THE FINANCIAL OFFICER ADDS THAT AS MCDONNELL DOUGLAS REBOUNDS IF YOU CAN'T CARRY YOUR OWN WEIGHT WE DON'T NEED YOU THE REST OF THE COMPANY SHOULD NOT HAVE TO MAKE UP FOR THE POOR PERFORMANCE OF DOUGLAS AIRCRAFT 9301280006 930128 WHO'S NEWS SPRINT CENTEL UNVEIL CHANGES OF POSITIONS FOR PENDING MERGER KANSAS CITY MO SPRINT CORP AND CHICAGOBASED CENTEL CORP SAID CENTEL'S PRESIDENT J STEPHEN VANDERWOUDE WILL TAKE OVER RESPONSIBILITY FOR THE COMPANIES' LOCAL TELEPHONE OPERATIONS WHEN THEIR PENDING MERGER IS COMPLETED THE APPOINTMENT WAS ONE OF SEVERAL ORGANIZATIONAL CHANGES THAT WILL BECOME EFFECTIVE AT THE CLOSE OF THE MERGER MR VANDERWOUDE 48 YEARS OLD WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMBINED LOCAL TELECOMMUNICATIONS DIVISION CURTIS G FIELDS 59 PRESIDENT AND CHIEF OPERATING OFFICER OF SPRINT'S LOCAL TELECOMMUNICATIONS DIVISION WILL RETIRE ALL SPRINT AND CENTEL TELEPHONE OPERATIONS IN TENNESSEE VIRGINIA AND THE CAROLINAS WILL BE COMBINED IN A MIDATLANTIC UNIT IN WAKE FOREST NC D WAYNE PETERSON 56 CURRENTLY PRESIDENT OF SPRINT'S CAROLINA TELEPHONE UNIT WILL BE PRESIDENT AND CHIEF EXECUTIVE OF THE NEW UNIT WILLIAM K SMITH 50 CURRENTLY PRESIDENT OF SPRINT'S UNITED TELEPHONESOUTHEAST UNIT IN BRISTOL TENN WILL BE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW UNIT SPRINT AND CENTEL'S FLORIDA TELEPHONE OPERATIONS WILL BE COMBINED AND BASED IN ALTAMONTE SPRINGS FLA FRED D LAWRENCE 44 PRESIDENT OF SPRINT'S FLORIDA UNIT WILL BE PRESIDENT AND CHIEF EXECUTIVE OF THE NEW FLORIDA UNIT DALE L CROSS 45 PRESIDENT OF CENTEL'S FLORIDA UNIT WILL BECOME VICE PRESIDENT OF TRANSITION AND INTEGRATION PLANNING IN THE NEW SPRINT'S LOCAL TELECOMMUNICATIONS DIVISION CENTEL'S TEXAS TELEPHONE OPERATION WILL BE COMBINED WITH SPRINT'S MIDWEST TELEPHONE UNIT MICHAEL B FULLER 48 PRESIDENT OF SPRINT'S UNIT WILL BE PRESIDENT OF THE COMBINED OPERATIONS 9301280005 930128 INTERNATIONAL MILITARY CUTS CAUSE DISQUIET ON THE WESTERN FRONT BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS STAGGERING UNDER HEAVY BUDGET DEFICITS THEIR ECONOMIES SINKING DEEPER INTO RECESSION WEST EUROPEAN GOVERNMENTS ARE AIMING AT AN EASY TARGET FOR AUSTERITY THEIR ARMED FORCES AND THIS TIME BELGIUM USUALLY A BACKSTAGE PLAYER IN THE NORTH ATLANTIC TREATY ORGANIZATION HAS AMBITIONS TO LEAD THE WAY DEFENSE MINISTER LEO DELCROIX PLANS TO SLASH THE ARMY'S SIZE TO 40000 FROM 80000 AND ABOLISH CONSCRIPTION TO RAISE CASH HE PLANS A MAMMOTH GARAGE SALE OF 210 BATTLE TANKS 105 FIGHTER JETS AND 22 SHIPSMORE THAN HALF THE ARMED FORCES' ROLLING FLYING AND FLOATING STOCK OUR OVERHEAD COSTS ARE MUCH TOO HIGH MR DELCROIX SAID IN AN INTERVIEW I WONDER WHAT KIND OF RETURN WE'RE GETTING ON OUR INVESTMENT BELGIUM ISN'T ALONE WITH THE END OF THE SOVIET INVASION THREAT SEVERAL COUNTRIES IN WESTERN EUROPE PLAN TO SCALE BACK THEIR ARMIES REDUCING OR ABOLISHING CONSCRIPTION WHAT THEY ARE AIMING FOR ARE SMALL MOBILE WELLEQUIPPED WELLTRAINED VOLUNTEER FORCES AS IN THE US AND BRITAIN CAPABLE OF PEACEKEEPING MISSIONS IN EASTERN HOT SPOTS SUCH AS THE FORMER YUGOSLAVIA THE TRANSFORMATION HAS TAKEN ON PARTICULAR URGENCY IN DECEMBER NATO FOREIGN MINISTERS PLEDGED TO HELP THE UNITED NATIONS ENFORCE A BAN AGAINST SERBIAN WARPLANES FLYING OVER BOSNIA UN SECRETARYGENERAL BOUTROS BOUTROSGHALI LATER URGED SENDING 10000 TROOPS TO BACK UP A SO FAR UNSUCCESSFUL PEACE PLAN FOR BOSNIA BUT MILITARY ANALYSTS AND NATO DIPLOMATS WORRY THAT THE PLANNED DEFENSE CUTBACKS WILL UNDERMINE THE ATLANTIC ALLIANCE'S COLLECTIVE DEFENSE AS WELL AS ITS NEWFOUND PEACEKEEPING ROLE THEY ARE ALARMED AT THE WIDENING GAP BETWEEN WHAT WEST EUROPEAN GOVERNMENTS SAY ABOUT SHOULDERING MORE RESPONSIBILITY FOR EUROPE'S SECURITY AND THE REALITY OF ERODING MILITARY STRENGTH IF WE IN EUROPE WANT TO BEAR MORE RESPONSIBILITY FOR OUR OWN SECURITY THEN WE NEED TO HAVE THE ADEQUATE FORCE LEVELS TO BE ABLE TO INTERVENE IN YUGOSLAVIA THAT MEANS PERSONNEL SAYS THEO VAN DEN DOEL A MILITARY STRATEGIST AT THE CLINGENDAEL INSTITUTE IN THE HAGUE HE SAYS WEST EUROPEAN GOVERNMENTS TODAY COULDN'T PUT TOGETHER THE 100000TROOP FORCE MANY DEEM WOULD BE NECESSARY TO HALT SERBIA'S BLOODY POLICY OF ETHNIC CLEANSING BELGIUM CURRENTLY HAS ABOUT 1500 SOLDIERS ON PEACEKEEPING AND MONITORING MISSIONS IN THE FORMER YUGOSLAVIA AND IN SOMALIA BUT THE COUNTRY'S TOP BRASS FEARS THESE MAY BE THEIR FINAL MISSIONS IN A HIGHLY CRITICAL CONFIDENTIAL REPORT BELGIAN CHIEF OF STAFF LT GEN JOSE CHARLIER CALLS MR DELCROIX'S PLAN A CHALLENGE TO THE VERY EXISTENCE OF THE BELGIAN ARMED FORCES GEN CHARLIER DECLINED TO BE INTERVIEWED FOR THIS ARTICLE NATO TOO IS WORRIED THE PLAN WILL WEAKEN BELGIUM'S ABILITY TO MAINTAIN THE PRESENT INTERNATIONAL COMMITMENTS AND TO TAKE UP A FAIR SHARE OF THE ALLIANCE'S DEFENSE BURDEN SAYS A CONFIDENTIAL NATO REPORT ABOVE ALL HOWEVER NATO FEARS THAT OTHER ALLIANCE MEMBERS WILL FOLLOW MR DELCROIX'S LEAD WE'RE WORRIED ABOUT THE BAD BELGIAN EXAMPLE SAYS A SENIOR DEFENSE PLANNING OFFICIAL AT NATO THE PLAN WAS SPRUNG ON US WE DON'T WANT INDIVIDUAL COUNTRIES RUSHING AHEAD AND CUTTING THE ALLIANCE NEVERTHELESS FACES MORE UNWANTED CUTBACKS THE DUTCH GOVERNMENT LAST WEEK UNVEILED A BELGIANSTYLE PLAN TO SLASH THE ARMY'S SIZE 44 AND TO PROGRESSIVELY ABOLISH THE DRAFT AS OF 1998 THE NORWEGIAN GOVERNMENT IS READYING A LONGTERM CUTBACK PLAN FOR ITS ARMED FORCES RESTRICTING THE DEFENSE OF ITS NATIONAL TERRITORY TO THE ARCTIC REGION BORDERING RUSSIA'S KOLA PENINSULA SPAIN MEANWHILE IS EXPECTED TO CONTINUE REDUCING ITS DEFENSE SPENDING ABOUT 3 A YEAR MILITARY PLANNERS AT NATO FEAR THAT GERMANY WHERE TALK OF ABOLISHING CONSCRIPTION IS HEATING UP AND ITALY WILL FOLLOW SUIT THE CUTBACKS ALSO RISK REIGNITING THE BITTER BURDENSHARING DEBATE BETWEEN NATO'S EUROPEAN MEMBERS AND THE US ENCOURAGING WASHINGTON TO REDUCE ITS MILITARY PRESENCE IN EUROPE FURTHER THAN ALREADY PLANNED THE US IS EXPECTED TO REDUCE ITS FORCES IN WESTERN EUROPE TO 100000 OR LESS BY 1995 FROM THE CURRENT 210000 DO WE WANT THE BELGIANS TO SPEND MORE ON THEIR DEFENSE THE ANSWER IS YES' SAYS A SENIOR NATO OFFICIAL FAMILIAR WITH THE US POSITION ON THE SUBJECT WITH ALL THE SUDDEN CUTTING NATO IS CHUCKING DETAILED MILITARY PLANS FASTER THAN IT CAN PUT THEM ON PAPER UNDER A BLUEPRINT SET UP BARELY 12 MONTHS AGO TO REORGANIZE NATO FORCES IN EUROPE TAKING INTO ACCOUNT THE COLLAPSE OF THE SOVIET UNION AND THE PLANNED US PULLBACK FROM EUROPE THE ALLIANCE HAD AGREED TO DEFEND WESTERN EUROPE WITH SEVEN ARMY CORPS OF 60000 TO 80000 MEN EACH INCLUDING TWO DUTCHGERMAN CORPS AND ONE BELGIANLED CORPS BUT LAST AUTUMN THE NETHERLANDS AND GERMANY ANNOUNCED THEY WOULD PROVIDE ONLY A SINGLE NATO CORPS BELGIUM MEANWHILE SAID IT WON'T PARTICIPATE AT ALL LACKING THE NECESSARY SOLDIERS AND EQUIPMENT AND IF PRESIDENT CLINTON DECIDES AS MANY EXPECT HE WILL TO ACCELERATE THE US WITHDRAWAL THE TWO USGERMAN CORPS WILL HAVE TO BE REDUCED TO ONE WE AREN'T DOING THIS IN A VERY COORDINATED FASHION SAYS WILLEM VAN EEKELEN SECRETARYGENERAL OF THE WESTERN EUROPEAN UNION THE NINEMEMBER EUROPEAN DEFENSE ORGANIZATION THAT AIMS TO BECOME THE SOCALLED EUROPEAN PILLAR OF NATO EVERYBODY IS DOING HIS STRATEGIC THINKING ON HIS OWN THE ONLY NATO COUNTRY CURRENTLY BOOSTING MILITARY SPENDING IS GREECE AND THAT ISN'T GOOD NEWS TO THE ALLIANCE WHICH WORRIES THAT ATHENS IS PREPARING TO GET INVOLVED IN THE YUGOSLAV CIVIL WAR AND THUS WIDEN THE BALKAN CONFLICT 9301280004 930128 WHO'S NEWS CORESTATES FINANCIAL CORP CORESTATES FINANCIAL CORP PHILADELPHIA GEORGE KALESNIK JR 43 BARRY A KASTNER 38 AND LEONARD B WOLF 50 WERE NAMED SENIOR VICE PRESIDENTS AT CONGRESS FINANCIAL CORP THE LENDING UNIT OF THIS BANK HOLDING COMPANY MR KALESNIK WILL CONTINUE IN CREDIT OPERATIONS AND AUDITING IN CHICAGO MR KASTNER WILL CONTINUE IN BUSINESS DEVELOPMENT IN NEW YORK MR WOLF WILL CONTINUE TO HEAD THE BALTIMORE OFFICE THE THREE MEN HAD BEEN VICE PRESIDENTS 9301280003 930128 DU PONT POSTS 4THPERIOD LOSS PLANS JOB CUTS LAYOFFS AT CONOCO DIVISION ARE SET AT 10 OF STAFF CARBIDE SWINGS TO PROFIT BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DU PONT CO CITING PLUNGING OIL PROFIT SAID IT PLANS TO CUT ITS CONOCO OIL DIVISION WORK FORCE BY 2000 OR 10 AND REPORTED A FOURTHQUARTER LOSS OF 230 MILLION OR 35 CENTS A SHARE THE LOSS STEMMED MAINLY FROM A RESTRUCTURING CHARGE OF 329 MILLION OR 49 CENTS A SHARE WHICH INCLUDED A PORTION OF THE COST OF THE CONOCO LAYOFFS IN 1991'S FOURTH QUARTER THE WILMINGTON DEL CHEMICAL AND OIL COMPANY SIMILARLY HAD A LOSS OF 240 MILLION OR 36 CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 472 MILLION OR 70 CENTS A SHARE SEPARATELY UNION CARBIDE CORP DANBURY CONN REPORTED FOURTHQUARTER NET INCOME OF 17 MILLION OR 12 CENTS A SHARE AFTER SEVERAL ONETIME GAINS AND CHARGES REVERSING A YEAREARLIER LOSS OF 63 MILLION OR 49 CENTS A SHARE THAT INCLUDED A COSTCUTTING CHARGE OF 46 MILLION THE RESULTS INCLUDE PREFERRED DIVIDENDS OF 2 MILLION PAID IN 1992 AND 5 MILLION IN 1991 CARBIDE SAID ITS BOARD AUTHORIZED THE COMPANY TO BUY BACK AS MANY AS 10 MILLION OF ITS SHARES TO MINIMIZE DILUTION FROM THE EXERCISE OF EMPLOYEE STOCK OPTIONS THE CHEMICAL AND PLASTICS MAKER AS EXPECTED ALSO NAMED WILLIAM H JOYCE PRESIDENT AND CHIEF OPERATING OFFICER MR JOYCE 57 SUCCEEDS H WILLIAM LICHTENBERGER WHO IN MID1992 WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CARBIDE SPINOFF PRAXAIR INC OIL INDUSTRY ANALYSTS SAID THE CUTS AT HOUSTONBASED CONOCO WHERE OPERATING PROFIT PLUNGED 44 LAST YEAR WERE OVERDUE IN LIGHT OF THE BLEAK OUTLOOK FOR OIL INDUSTRY PROFITS OVER THE NEXT FEW YEARS THEY'RE VIRTUALLY THE ONLY OIL COMPANY THAT HASN'T ALREADY CUT STAFF OVER THE PAST TWO YEARS SAID BRYAN JACOBOSKI A PAINE WEBBER INC OIL ANALYST DU PONT'S FOURTHQUARTER PROFIT FROM CONTINUING OPERATIONS SKIDDED 28 TO 167 MILLION OR 24 CENTS A SHARE FROM 232 MILLION OR 34 CENTS A SHARE A YEAR EARLIER ESPECIALLY HARDHIT WAS DU PONT'S FIBERS BUSINESS WHERE FOURTHQUARTER OPERATING PROFIT FELL 51 TO 74 MILLION FROM 152 MILLION FIBERS INCLUDING DU PONT'S HIGHMARGIN LYCRA SPANDEX FIBERS SUFFERED FROM A DROP IN EUROPEAN ORDERS IN NOVEMBER AND DECEMBER AS CUSTOMERS DREW DOWN INVENTORIES IN ANTICIPATION OF LOWER PRICES THIS YEAR ANALYSTS SAID PATRICIA O'BRIEN AN ANALYST WITH COUNTY NATWEST SECURITIES CO SAID SHE EXPECTS THE LYCRA BUSINESS TO SNAP BACK LATER THIS YEAR IF DU PONT HOLDS THE LINE ON PRICES AND CUSTOMERS REORDER AS EUROPEAN ECONOMIES SLOWLY RECOVER FOURTHQUARTER OPERATING PROFIT AT CONOCO SLIPPED 13 TO 111 MILLION FROM 128 MILLION AMONG OTHER DU PONT BUSINESSES CHEMICALS OPERATING PROFIT INCHED UP TO 59 MILLION FROM 58 MILLION WHILE POLYMERS OPERATING PROFIT JUMPED 38 TO 44 MILLION FROM 32 MILLION DIVERSIFIED BUSINESSES AS A GROUP REPORTED A LOSS OF 47 MILLION COMPARED WITH A LOSS OF 59 MILLION IN THE YEAREARLIER QUARTER UNION CARBIDE SAID FOURTHQUARTER OPERATING PROFIT REFLECTED THE SLOW PACE OF THE ECONOMIC RECOVERY IN THE US AND THE RESULT OF INDUSTRY OVERBUILDING IN THE LATE 1980S CHAIRMAN ROBERT D KENNEDY SAID UNTIL DEMAND CATCHES UP WITH SUPPLY WE WILL CONTINUE TO EXPERIENCE VERY TIGHT MARGINS IN OUR MAJOR PRODUCT LINES 9301280002 930128 REVIEW & OUTLOOK EDITORIAL ASIDES LONGSHOT LOWRY WE'VE ALREADY ESTABLISHED THAT WASHINGTON STATE HAS A HANDICAP IN NEW GOVERNOR MIKE LOWRY HE BEAT THE ODDS AGAINST A DIEHARD LIBERAL GETTING ELECTED AND NOW WANTS TO TRY HIS LUCK AT HORSE RACING THE GOVERNOR HAS LET IT BE KNOWN THAT UNLESS A PRIVATE ENTITY CAN BEGIN ON A REPLACEMENT BY SPRING FOR THE NOWCLOSED LONGACRES PARK NEAR SEATTLE HE'LL SEEK TO HAVE THE STATE ERECT A VENUE FOR THE BETTING SPORT WITH WASHINGTON'S GOVERNMENT IN THE RED AND THE BOEING CO PLANNING BIG LAYOFFS YOU'D THINK MR LOWRY WOULD WANT TO SPARE TAXPAYERS THE WHIP BUT POLITICIANS ALWAYS DREAM OF ENDING UP IN THE WINNER'S CIRCLE 9301280001 930128 FDIC SELLING ASSETS OF FIRST CITY BANCORP CHEMICAL BANK TEXAS UNIT IS BIGGEST BUYER DEAL WON'T COST FUND AT ALL BY KENNETH H BACON AND MICHAEL ALLEN STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL DEPOSIT INSURANCE CORP IS SELLING THE BULK OF THE REMNANTS OF THE FAILED FIRST CITY BANCORP OF TEXAS TO TEXAS COMMERCE BANCSHARES IN AN UNEXPECTEDLY SUCCESSFUL TRANSACTION THAT WON'T COST THE BANK INSURANCE FUND ANYTHING TEXAS COMMERCE A UNIT OF CHEMICAL BANKING CORP IN NEW YORK AGREED TO PAY 3468 MILLION TO ACQUIRE FIRST CITY BRANCHES WITH COMBINED ASSETS OF 664 BILLION IN HOUSTON DALLAS BEAUMONT EL PASO AND MIDLAND IN ADDITION 11 OTHER BANKS BID A TOTAL OF 876 MILLION TO PURCHASE THE 15 OTHER FIRST CITY BRANCHES ALTOGETHER FIRST CITY'S 20 BRANCHES HAD ASSETS OF 912 BILLION WHEN REGULATORS CLOSED FIRST CITY IN OCTOBER THE FDIC ESTIMATED THAT THE BANK'S FAILURE WOULD COST THE INSURANCE FUND 500 MILLION THE FDIC NOW ESTIMATES THAT THE COMPLETED TRANSACTION REVENUE FROM THE SALE OF THE BRANCHES PLUS WHAT IT EARNS FROM SELLING SOME OF THE BANK'S ASSETS LEAVE IT WITH A SURPLUS OF 60 MILLION BECAUSE THE FDIC CAN'T MAKE A PROFIT ON BANK FAILURES ANY SURPLUS WILL BE RETURNED TO THE HOLDING COMPANY FIRST CITY BANCORP WHICH IS CURRENTLY IN BANKRUPTCYLAW PROCEEDINGS THE MONEY FROM THE FDIC WOULD EVENTUALLY BE AVAILABLE FOR DISTRIBUTION TO FIRST CITY BONDHOLDERS AND OTHER CREDITORS THE HIGH PRICES PAID IN THE FIRST CITY AUCTION IS ANOTHER SIGN THAT THE WORST OF THE BANKING CRISIS IS OVER NOT ONLY IS THE PACE OF BANK FAILURES SLOWING BUT THE AMOUNT THE FDIC IS REALIZING ON SALES OF BANKS IS RISING YESTERDAY FDIC CHAIRMAN ANDREW HOVE SAID HE EXPECTS THE AGENCY TO REDUCE ITS ESTIMATES FOR THE COST OF BANK FAILURES FROM THE CURRENT PROJECTION OF 88 BILLION THIS YEAR THE BIDDING FOR FIRST CITY YIELDED A MUCH MUCH BETTER RESULT THAN WE HAD ANY RIGHT TO ANTICIPATE SAID HARRISON YOUNG THE FDIC OFFICIAL IN CHARGE OF SELLING FAILED BANKS THE AGENCY RECEIVED 111 BIDS TO PURCHASE VARIOUS COMBINATIONS OF THE 20 BANKS FROM 32 HOPEFUL PURCHASERS MR YOUNG SAID THE SPIRITED BIDDING REFLECTED THE IMPACT OF A 1991 BANK LAW THAT FORCES THE FDIC TO CLOSE BANKS BEFORE THEY ARE COMPLETELY INSOLVENT AS WELL AS THE UPTURN IN THE ECONOMY FIRST CITY WAS A VERY VALUABLE FRANCHISE IN AN ECONOMY THAT'S CLEARLY IN RECOVERY ASSERTED FRANK DESANTIS A BANKING ANALYST WITH DONALDSON LUFKIN & JENRETTE IT WAS THE LAST LARGE BANKING ORGANIZATION FOR SALE IN THE NATION'S THIRDLARGEST BANKING MARKET THE STRONG BIDDING ALSO WAS A SIGN OF RECOVERY IN THE TEXAS BANKING MARKET WHERE 485 BANKS HAVE FAILED SINCE 1985 THE FDIC'S GOOD DEAL IMMEDIATELY TRIGGERED ACCUSATIONS THAT THE REGULATORS PREMATURELY CLOSED FIRST CITY WHEN THE COMPTROLLER OF THE CURRENCY CLOSED THE BANK IN OCTOBER FIRST CITY WAS STRUGGLING TO RECAPITALIZE ITSELF WITH PRIVATE MONEY BUT THE REGULATOR DECIDED THE PLAN WAS DOOMED TO FAIL IN 1988 THE FDIC CONTRIBUTED 970 MILLION TO A NONGOVERNMENT RESCUE OF FIRST CITY BUT THAT EFFORT FAILED SOME GOVERNMENT OFFICIALS WERE WARY OF BEING BURNED AGAIN THE FIRST QUESTION THAT COMES TO MIND IS IF THE FDIC CUT SUCH A GOOD DEAL THEN WHY WERE THEY SO QUICK TO PULL THE PLUG ON FIRST CITY'S PLAN ASKED FRANK ANDERSON A BANKING ANALYST WITH STEPHENS INC LITTLE ROCK ARK CLEARLY THERE WAS A MAJOR ERROR SOMEWHERE ON REALIZABLE VALUES ROBERT BROWN CHIEF FINANCIAL OFFICER OF FIRST CITY BANCORP OF TEXAS SAID THE FDIC'S MISCALCULATION WAS EVEN BIGGER THAN OFFICIALS ARE CONCEDING HE SAID HE HAS A SWORN AFFIDAVIT FROM AN FDIC OFFICIAL STATING THAT ONLY A WEEK OR TWO BEFORE THE BANK SEIZURES THE AGENCY WAS FORECASTING A 700 MILLION LOSS TO THE FUND RATHER THAN THE 60 MILLION SURPLUS NOW PROJECTED AN FDIC OFFICIAL REFUSED TO COMMENT DIRECTLY ABOUT THE AFFIDAVIT BEYOND EMPHASIZING THAT AT EVERY STAGE OF ITS ANALYSIS OF FIRST CITY THE AGENCY MADE THE MOST ACCURATE CALCULATIONS IT COULD RODGIN COHEN A BANK MERGER EXPERT WITH THE NEW YORK LAW FIRM OF SULLIVAN & CROMWELL SAID THAT THE RECENT RISE IN BANK STOCK PRICES IS ONE REASON THE FDIC GOT SIGNIFICANTLY HIGHER BIDS THAN IT EXPECTED THIS MEANS THAT BANKS HAVE TO ISSUE FEWER SHARES TO MAKE ACQUISITIONS CHEMICAL PLANS TO FINANCE THE ACQUISITION OF FIRST CITY ASSETS BY ISSUING 150 MILLION IN COMMON STOCK THE PRICE OF CHEMICAL'S SHARES HAS RISEN ABOUT 25 TO 4175 A SHARE IN THE PAST SIX MONTHS JOHN ADAMS VICE CHAIRMAN OF TEXAS COMMERCE BANCSHARES SAID IN A NEWS CONFERENCE THAT THE BIDDING ON FIRST CITY WAS VERY AGGRESSIVE AND THAT WE PROBABLY ONLY WON BY A PERCENT OR TWO HE SAID HE EXPECTS IT TO TAKE ABOUT ONE AND A HALF YEARS TO FULLY INTEGRATE THE TWO BANKING NETWORKS CHEMICAL HOPES TO SLASH 200 MILLION IN COSTS BY ELIMINATING DUPLICATE OPERATIONS BY 1994 WHICH WILL LIKELY RESULT IN 1700 DISMISSALS IN ADDITION IT WILL KEEP OPEN 34 OF THE 58 BRANCHES IT IS PURCHASING BRINGING ITS TEXAS NETWORK TO 126 BRANCHES THE COMPANY WILL INCUR A ONETIME 30 MILLION CHARGE IN THE FIRST QUARTER FOR SEVERANCE AND CONSOLIDATION COSTS WE ARE TAKING ADVANTAGE OF A UNIQUE OPPORTUNITY TO ENSURE A POSITION OF SUBSTANTIAL LEADERSHIP IN THE TEXAS MARKET WHILE GAINING THE BENEFITS OF AN INMARKET ACQUISITION SAID JOHN F MCGILLICUDDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHEMICAL IN 1992 TEXAS COMMERCE EARNED 180 MILLION UP 43 FROM THE YEAR EARLIER AFTER INCURRING LARGE LOSSES TEXAS COMMERCE HAS TURNED AROUND AND HAD 18 CONSECUTIVE QUARTERS OF DECLINING NONPERFORMING ASSETS 9301270177 930127 UNITED AIR CUTS 10 EXECUTIVE POSITIONS UNIONS RESIST BID FOR LABOR CONCESSIONS BY BRETT PULLEY AND ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNITED AIRLINES IS ELIMINATING THE JOBS OF 10 EXECUTIVES AS PART OF ITS BROAD COSTCUTTING EFFORT BUT IT'S RUNNING INTO A DEAD END IN ITS ATTEMPT TO GET CONCESSIONS FROM UNIONIZED WORKERS ONE SENIOR VICE PRESIDENT AND NINE VICE PRESIDENTS OF THE AIRLINE UNIT OF UAL CORP HAVE BEEN TOLD THAT THEIR JOBS ARE BEING ELIMINATED A SPOKESMAN CONFIRMED THAT REPRESENTS ONEFIFTH OF UNITED'S 50 OFFICERS BUT THE AIRLINE'S LABOR GROUPS ARE BALKING AT UNITED'S REQUEST FOR MORE THAN 300 MILLION IN WAGE AND BENEFIT CONCESSIONS LEADERS OF UNITED'S MACHINISTS' AND FLIGHT ATTENDANTS' UNIONS HAVE TOLD THE AIRLINE THEY WILL NOT REOPEN THEIR CONTRACTS AND THE PILOTS' UNION SAYS IT WON'T EVEN RESPOND TO MANAGEMENT'S REQUEST FOR CONCESSIONS WITHOUT FIRST EXAMINING THE COMPANY'S BOOKS AS PART OF ITS PLAN TO TRIM 2800 EMPLOYEES FROM ITS WORK FORCE OF 83000 THE NATION'S SECONDLARGEST AIRLINE IS LAYING OFF ABOUT 2200 PEOPLE AND ACCEPTING EARLY RETIREMENT FROM ABOUT 600 OTHERS A SPOKESMAN SAID NOTIFICATION OF THE JOB ELIMINATIONS WENT OUT TO SENIOR EXECUTIVE OFFICERS TWO WEEKS AGO AND OTHERS WHO ARE LOSING THEIR JOBS ARE BEING NOTIFIED THIS WEEK WILLIAM C SPEICHER A SENIOR VICE PRESIDENT WHO HAS SPENT THE LAST FIVE YEARS RUNNING THE AIRLINE'S PACIFIC DIVISION SAID HE ACCEPTED AN EARLY RETIREMENT OFFER WHEN I LOOKED AT ALL OF THE OPTIONS IT WAS MY DECISION TO RETIRE HE SAID A UNITED EMPLOYEE FOR 26 YEARS MR SPEICHER SAID HE'LL REMAIN IN HONOLULU AND WORK UNDER CONTRACT ON LEGISLATIVE MATTERS FOR UNITED ALSO LEAVING THE COMPANY IS ROBERT DOLL A VICE PRESIDENT FOR LINE MAINTENANCE MR DOLL COULD NOT BE REACHED TO COMMENT BUT AN EMPLOYEE IN HIS OFFICE CONFIRMED THAT MR DOLL'S POSITION WAS ELIMINATED MR DOLL HAS SPENT SEVEN YEARS AT UNITED'S MAINTENANCE BASE IN SAN FRANCISCO UNITED'S CUTBACKS COME AS THE CARRIER SUFFERS FROM LOSSES THAT HAVE BESET THE INDUSTRY FOR MORE THAN TWO YEARS THIS WEEK UAL IS EXPECTED TO REPORT A HUGE FOURTHQUARTER LOSS INCLUDING AN ACCOUNTING CHARGE FOR RETIREE BENEFITS IN ADDITION TO THE JOB ELIMINATIONS UNITED THIS MONTH IMPOSED A 5 PAY CUT ON EXECUTIVE OFFICERS AND MANAGERS UNITED SAID THIS MONTH THAT THE LAYOFFS OF UNION AND NONUNION WORKERS WOULD HELP SAVE 400 MILLION A YEAR AND THAT IT WOULD SEEK ADDITIONAL SAVINGS FROM ITS 54000 UNIONIZED WORKERS ACCORDING TO LETTERS UNITED LATER SENT TO EACH OF ITS THREE MAIN LABOR GROUPS THE AIRLINE WANTS 2906 MILLION IN PRODUCTIVITY SAVINGS FROM THE UNIONIZED WORKERS IT ALSO REQUESTED A ONEYEAR PAY CUT OF 5 PLUS TWOYEAR DELAYS IN WAGE INCREASES SCHEDULED FOR THE NEXT THREE YEARS IN ADDITION UNITED ASKED THE WORKERS TO PAY 20 OF THE COSTS OF MEDICAL INSURANCE ALTHOUGH UNITED OFFERED PROFITSHARING IN RETURN THE UNIONS RESISTED THE IDEA OF RENEGOTIATING CONTRACTS THAT WERE CONCLUDED IN 1991 AFTER YEARS OF BARGAINING WE FEEL WE HAVE HELPED OUT AND NOW IT'S TIME THEY LOOKED TO OTHER THINGS SAID KENNETH THIEDE PRESIDENT OF DISTRICT LODGE 141 OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS DIANE TUCKER PRESIDENT OF THE ASSOCIATION OF FLIGHT ATTENDANTS LOCAL AT UNITED TOLD MEMBERS THAT UAL'S FINANCIAL STATUS DOES NOT WARRANT THE EXTREME MEASURES THAT ARE BEING REQUESTED A UAL SPOKESMAN SAID THE COMPANY WILL HONOR ITS CONTRACTS BUT HE ADDED THAT IT'S DISAPPOINTED THE UNIONS WOULD CONCLUDE THAT THE COMPANY DOES NOT NEED THEIR HELP ROGER HALL HEAD OF THE UNITED UNIT OF THE AIR LINE PILOTS ASSOCIATION SAID HIS UNION WANTS AN INDEPENDENT LOOK AT UNITED'S FINANCIAL SITUATION AND BUSINESS PLAN BEFORE DECIDING WHAT TO DO 9301270176 930127 WHO'S NEWS WANG LABORATORIES INC WANG LABORATORIES INC LOWELL MASS WILLIAM P FERRY FORMERLY GENERAL MANAGER EUROPE WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND GENERAL MANAGER NORTH AMERICAN OPERATIONS OF THIS COMPUTER MAKER HAROLD S FISCHER FORMERLY GENERAL MANAGER US COMMERCIAL OPERATIONS WAS NAMED TO THE NEW POST OF VICE PRESIDENT AND GENERAL MANAGER SOUTH PACIFIC AND LATIN AMERICAN OPERATIONS 9301270175 930127 UNITED TECHNOLOGIES POSTS BIG LOSS FOR 4TH QUARTER PLANS TO CUT MORE JOBS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP CITING A BLEAK SALES OUTLOOK FOR ITS JETENGINE UNIT POSTED A 333 MILLION FOURTHQUARTER LOSS AFTER A LARGERTHANEXPECTED CHARGE AND ANNOUNCED PLANS TO CUT AS MANY AS 7000 MORE JOBS THE 701 MILLION CHARGE WAS SIGNIFICANTLY LARGER THAN THE 500 MILLION WALL STREET ANALYSTS EXPECTED AND INCLUDED 85 MILLION FOR ACCELERATING A COMPANYWIDE RESTRUCTURING PLAN PUT IN PLACE EARLY LAST YEAR MUCH OF THE NEW COSTCUTTING WILL FOCUS ON THE COMPANY'S PRATT & WHITNEY JET ENGINE UNIT THE COMPANY SAID IT WILL ELIMINATE 6000 TO 7000 ADDITIONAL JOBS AT THE UNIT REDUCING EMPLOYMENT THERE TO 30000 EMPLOYEES BY THE END OF 1994 WE CONTINUE TO SEE UNPRECEDENTED TURMOIL AND FINANCIAL LOSSES IN THE COMMERCIAL AIRLINE INDUSTRY SAID ROBERT F DANIELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNITED TECHNOLOGIES MR DANIELL WHO PUT IN PLACE A NEW MANAGEMENT TEAM AT PRATT & WHITNEY LATE LAST YEAR SAID THE ADDITIONAL COSTCUTTING EFFORTS WILL HELP UNITED TECHNOLOGIES ACHIEVE ITS PERFORMANCE OBJECTIVES IN THE YEARS AHEAD REACTING TO THE UNITED TECHNOLOGIES' ANNOUNCEMENT MOODY'S INVESTORS SERVICE PLACED THE COMPANY'S 23 BILLION IN LONGTERM DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UNITED TECHNOLOGIES' STOCK CLOSED AT 4750 DOWN 125 CENTS UNITED TECHNOLOGIES ALSO DISCLOSED THAT THE US GOVERNMENT IS SEEKING 370 MILLION IN PENALTIES AND INTEREST TO SETTLE CERTAIN CIVIL CLAIMS AGAINST THE COMPANY'S SIKORSKY HELICOPTER UNIT IN 1988 THE COMPANY DISCLOSED TO THE GOVERNMENT THAT DUE TO AN ERROR IT HAD BEEN COLLECTING PAYMENTS FROM THE GOVERNMENT AHEAD OF COMPLETED WORK THE COMPANY SAID THE AMOUNT IT OWES IS SUBSTANTIALLY BELOW THE GOVERNMENT'S CLAIM AND THAT IT IS PREPARED TO TAKE THE MATTER TO COURT IF A SETTLEMENT ISN'T REACHED ALTHOUGH SOME ANALYSTS WERE SURPRISED AT THE EXTENT OF THE CHARGE THEY APPLAUDED THE COMPANY'S ACTION IT SAYS THAT THE NEW MANAGEMENT TEAM AT PRATT & WHITNEY IS TRULY LOOKING TO CLEAN UP THE ACT OF THE JET ENGINE SUPPLIER SAID STEVE BINDER AN ANALYST WITH BEAR STEARNS & CO IN REPORTING ITS LATEST RESULTS THE COMPANY SAID IT ADOPTED NEW ACCOUNTING STANDARDS INCLUDING ONE TO REFLECT PROVISIONS FOR POSTRETIREMENT BENEFITS UNITED TECHNOLOGIES' FOURTHQUARTER LOSS OF 333 MILLION AMOUNTED TO 277 A SHARE WITHOUT THE CHARGE AND ACCOUNTING CHANGES THE COMPANY WOULD HAVE POSTED A PROFIT OF 77 CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER IT HAD A LOSS OF 122 BILLION OR 1033 A SHARE AFTER RESTRUCTURING AND ENVIRONMENTAL CHARGES TOTALING 153 BILLION REVENUE FOR THE QUARTER WAS 58 BILLION THE SAME AS A YEAR EARLIER FOR ALL OF 1992 THE COMPANY POSTED A NET LOSS OF 287 MILLION OR 267 A SHARE WITHOUT THE CHARGES AND ACCOUNTING CHANGES THE COMPANY'S 1992 PROFIT WAS 360 A SHARE IN 1991 THE COMPANY HAD A LOSS OF 102 BILLION OR 891 A SHARE REVENUE FOR THE YEAR WAS UP SLIGHTLY TO 22 BILLION FROM 213 BILLION IN 1991 THE COMPANY'S PERFORMANCE WAS IN LINE WITH ANALYSTS' EXPECTATIONS PRIMARILY BECAUSE LATE LAST YEAR THE COMPANY ANNOUNCED THAT IT WAS SCALING BACK ITS EARNINGS ESTIMATES BESIDES JET ENGINES UNITED TECHNOLOGIES BASED IN HARTFORD CONN MAKES AUTOMOTIVE PRODUCTS ELEVATORS AND HEATING AND AIR CONDITIONING SYSTEMS MR DANIELL SAID THAT EXCEPT FOR PRATT & WHITNEY ALL SEGMENTS OF UNITED TECHNOLOGIES POSTED SIGNIFICANTLY IMPROVED OPERATING RESULTS DESPITE A CONTINUING RECESSION IN THOSE MARKETS PRATT & WHITNEY LAST YEAR HAD A LOSS OF ABOUT 500 MILLION THE COMPANY'S POWER DIVISION WHICH LARGELY INCLUDES PRATT & WHITNEY HAD OPERATING PROFIT OF 28 MILLION IN THE FOURTH QUARTER OF 1992 BEFORE THE CHARGE AND ACCOUNTING CHANGES THAT WAS DOWN SUBSTANTIALLY FROM 138 MILLION IN THE YEAREARLIER QUARTER AS A RESULT OF SHARP DECLINES IN SPARE PARTS SALES TO AIRLINES AND REDUCED ENGINE SHIPMENTS THE JET ENGINE UNIT AND SPARE PARTS BUSINESS ACCOUNTED FOR 694 BILLION OR 32 OF UNITED TECHNOLOGIES' 1992 REVENUE PRATT & WHITNEY'S NEW PRESIDENT KARL J KRAPEK SAID THESE LOSSES CANNOT CONTINUE HE SAID THE LAYOFFS DEEPER AND SOONER THAN PREVIOUSLY TARGETED WILL HELP PRATT & WHITNEY BECOME A SMALLER HIGHLY PROFITABLE COMPANY THE COMPANY HAD PLANNED TO ELIMINATE 5000 JOBS AT THE JET ENGINE UNIT BY 1995 UNDER LAST YEAR'S COMPANYWIDE RESTRUCTURING PLAN THE COMPANY HAD ALREADY ACCELERATED THE JOB CUTBACKS AND THE ADDITIONAL DISMISSALS OF AS MANY AS 7000 EMPLOYEES BY 1994 WILL MAKE THE RETRENCHMENT DEEPER AND SOONER THAN PREVIOUSLY SCHEDULED MR KRAPEK SAID THAT 60 OF THE NEW JOB REDUCTION WILL BE IN SALARIED AND EXECUTIVE RANKS THE COMPANY SAID 447 MILLION OF THE 701 MILLION IN CHARGES ARE TO COVER RISKS IN ITS ENGINEFINANCING ARRANGEMENTS WITH CUSTOMERS AND AN ADDITIONAL 169 MILLION FOR LOSSES WHERE CUSTOMERS MAY NOT TAKE DELIVERY OF ORDERS UNDER EXISTING CONTRACTS 9301270174 930127 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FRANCE'S 1991 TRADE DEFICIT OF 30 BILLION FRANCS 563 BILLION SWUNG TO A 1992 SURPLUS OF THE SAME SIZE THE GOVERNMENT TERMED THE TURNAROUND THE BEST PERFORMANCE IN TWO DECADES BUT THE SURPLUS RESULTED MAINLY FROM DECLINING IMPORTS CAUSED BY THE WEAK ECONOMY EXPORTS WERE ALMOST STAGNANT FRANCE'S CAPITALGOODS INDUSTRY IS STRUCTURALLY WEAK WHEN THE ECONOMY IS STRONG FRANCE MUST IMPORT CAPITAL GOODS FROM GERMANY ITALY AND JAPAN AND ITS TRADE GAP BALLOONS WHEN THE ECONOMY IS WEAK INVESTMENT DRIES UP AND THE TRADE DEFICIT NARROWS OR DISAPPEARS THOUGH THE BIG SURPLUS WAS WELCOMED IT WASN'T AN UNMITIGATED SIGN OF ECONOMIC STRENGTH FRANCE'S LEADING EXPORTS ARE SUBSIDIZED FOOD PRODUCTS AND AIRCRAFT WHILE THE GOVERNMENT WAS PROCLAIMING THE LATEST RESULTS A VICTORY FOR ITS POLICIES THAT TAMED ANNUAL INFLATION TO 2 EUROPE'S LOWEST RATE ECONOMISTS SAID THE TRADE SURPLUS MAY MELT THIS YEAR BECAUSE OF EUROPE'S ECONOMIC SLOWDOWN RUSSIA PLANS TO COMPLETE ITS HUGE PRIVATIZATION PROGRAM BY YEAR END TRANSFERRING FROM STATE OWNERSHIP ALL SMALL AND MEDIUMSIZE ENTERPRISES AND MOST OF THE MILITARYINDUSTRIAL SECTOR THE PRIVATIZATION CHIEF ANATOLY CHUBAIS SAID SELLOFFS OF THE SMALLER FIRMS WOULD RAISE ABOUT 300 BILLION RUBLES 5282 MILLION UNLESS THE CAMPAIGN IS STYMIED BY HYPERINFLATION AND THE PLUMMETING RUBLE ABOUT 46000 STATE ENTERPRISES OR ONETHIRD OF THE EXPECTED TOTAL HAVE BEEN SOLD HALF THE NEW OWNERS ARE WORKERS AT THE FIRMS THE SALES RAISED 150 BILLION RUBLES TWICE EXPECTATIONS ABOUT 5000 BIG ENTERPRISES INCLUDING DEFENSE PLANTS ARE TO BE CONVERTED INTO SHAREHOLDEROWNED OPERATIONS BRAZIL'S TRADE SURPLUS LAST YEAR WIDENED 48 TO A RECORD 1567 BILLION FROM A YEAR EARLIER EXPORTS SET A HIGH OF 3621 BILLION 60 OF WHICH WERE MANUFACTURED GOODS IMPORTS FELL 24 TO 2054 BILLION BECAUSE OF LOWER PETROLEUM PRICES BRAZIL IMPORTS NEARLY HALF ITS CRUDE OIL THE SURPLUS STEMMED LARGELY FROM BRAZIL'S RECESSION WHICH FORCED BUSINESSES TO SEEK MORE FOREIGN MARKETS AND DEVELOP MORE COMPETITIVE PRODUCTS LED BY SHOES TEXTILES TRANSPORTATION MATERIALS MEAT PAPER AND CELLULOSE MACHINERY AND CHEMICALS COFFEE REVENUE A TRADITIONAL EXPORT LEADER FELL 30 TO 970 MILLION SHIPMENTS TO THE US THE BIGGEST MARKET FOR BRAZILIAN GOODS ROSE 12 TO 7 BILLION A CONSUMER BOOM SWEPT CHINA'S CAPITAL LAST YEAR RETAIL SALES IN BEIJING JUMPED 20 TO 43 BILLION YUAN 736 BILLION FROM A YEAR EARLIER THE TOP 15 DEPARTMENT STORES IN THE CITY ACCOUNTED FOR A COMBINED TOTAL OF ABOUT 5 BILLION YUAN IN THE PAST YEAR SEVEN HUGE DEPARTMENT STORES HAVE OPENED IN BEIJING EACH ATTRACTING AS MANY AS 100000 SHOPPERS A DAY AND EIGHT MORE STORES ARE UNDER CONSTRUCTION MALAYSIA'S NINE ROYAL SULTANS FACE NOT ONLY DIMINISHED POWERS BUT THE LOSS OF LUCRATIVE BENEFITS THE GOVERNMENT SAID THE MONARCHY WHICH HAD BEEN GRANTED EXTRA CASH AND AWARDS SUCH AS TIMBER CONCESSIONS WILL GET ONLY LEGALLY MANDATED FUNDS OFFICIALS STEPPED UP PRESSURE TO SECURE THE SULTANS' ENDORSEMENT OF CONSTITUTIONAL AMENDMENTS APPROVED BY PARLIAMENT TO REVOKE ROYALS' IMMUNITY FROM PROSECUTION REDUCE THEIR POWERS ON PARDONS AND ALLOW CRITICISM OF THEM PARLIAMENT MAY MAKE THE MEASURES LAW BY REAFFIRMATION IF THE ROYALS DISSENT SOUTH KOREA SAID 52 FOREIGN COMPANIES WITHDREW INVESTMENT TOTALING 369 MILLION LAST YEAR A SHARP RISE FROM THE ANNUAL AVERAGE OF 16 DEPARTURES IN THE THREE DECADES THROUGH 1992 TWOTHIRDS OF THE CONCERNS THAT PULLED OUT BLAMED DETERIORATING BUSINESS CONDITIONS AND GLOOMY PROSPECTS WHILE 12 TRANSFERRED MANAGEMENT RIGHTS TO KOREAN PARTNERS MEANWHILE NEW FOREIGN INVESTORS FELL 18 TO 234 FROM THE PREVIOUS YEAR AND TOTAL OUTLAYS SANK 36 TO 8946 MILLION THE EUROPEAN COMMUNITY CLEARED DENMARK'S PLAN TO CREATE 10 ENTERPRISE ZONES IN HIGHUNEMPLOYMENT AREAS BUSINESSES THAT SET UP IN THE ZONES THIS YEAR WILL GET PROPERTYTAX BREAKS BELGIAN AIRTRAFFIC CONTROLLERS CAUSED FLIGHT DELAYS FOR A SECOND DAY THROUGH INTERMITTENT TWOHOUR WALKOUTS THEY WANT BETTER WORKING CONDITIONS AIMED AT REDUCING JOB STRESS 9301270173 930127 ECONOMY CONFIDENCE FELL FOR CONSUMERS DURING JANUARY DATA BACK ANALYSTS' FEAR JOB GROWTH WAGE GAINS NEEDED TO SPUR SPENDING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE LEVELED OFF THIS MONTH AFTER INCREASING SUBSTANTIALLY AT THE END OF LAST YEAR A NEW SURVEY SHOWS THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX FELL 11 TO 770 IN JANUARY IN NOVEMBER AND DECEMBER THE INDEX JUMPED A TOTAL OF 23 POINTS AFTER A PROLONGED PERIOD OF CONSUMER MALAISE THE NEW READING SUPPORTS WHAT MANY ANALYSTS HAD FEARED THAT THE RISING OPTIMISM AND SPENDING OF US CONSUMERS WOULDN'T BE SUSTAINED WITHOUT FASTER JOB GROWTH AND WAGE GAINS INDEED THE LABOR DEPARTMENT SAID THAT WAGES SALARIES AND BENEFITS OF US WORKERS ROSE ONLY 09 IN THE FOURTH QUARTER AND WERE UP JUST 35 FROM A YEAR EARLIER WAGES ALONE WERE UP ONLY 26 FROM A YEAR AGO THE SMALLEST GAIN SINCE THE INDEX WAS DEVELOPED IN 1980 BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH SAID IT WAS PROBABLY THE SMALLEST ANNUAL INCREASE IN WAGES SINCE THE EARLY 1960S THE DROP IN CONFIDENCE WHICH ALSO SHOWED UP IN A CONSUMERSENTIMENT INDEX FROM THE UNIVERSITY OF MICHIGAN DOESN'T NECESSARILY SPELL TROUBLE FOR THE US ECONOMY HOWEVER ANALYSTS SAID THE LEVEL IS CONSISTENT WITH INCREASED SPENDING THROUGHOUT 1993 BUT NOT AT THE FAST PACE OF THE FINAL HALF OF LAST YEAR AFTER ALL THE READING REMAINS WELL ABOVE ITS RECESSIONARY AND EARLY RECOVERY LEVELS THE INDEX WAS AT 546 IN OCTOBER GIVEN THE IMPOSING IMPROVEMENT IN THE MEASURE OF CONSUMER CONFIDENCE REGISTERED IN THE FINAL MONTHS OF 1992 THE SLIGHT DECLINE IN JANUARY IS OF FAINT CONSEQUENCE SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER IN THE LATEST SURVEY CONSUMERS WERE MORE POSITIVE IN THEIR ASSESSMENT OF BUSINESS CONDITIONS BUT LESS OPTIMISTIC IN THEIR EXPECTATIONS FOR THE COMING MONTHS BUYING PLANS IN JANUARY FELL OFF FROM DECEMBER AS WELL THE JANUARY DECLINE IN CONFIDENCE WAS ALMOST ENTIRELY CENTERED IN THE PACIFIC AND SOUTH CENTRAL REGIONS OF THE COUNTRY THE SURVEY SAID 9301270172 930127 BUSINESS BRIEF COLOROCS CORP REORGANIZATION PLAN IS FILED PACT REACHED WITH HOLDERS COLOROCS CORP SAID IT FILED A REORGANIZATION PLAN WITH A US BANKRUPTCY COURT THE ATLANTABASED MARKETER OF COLOR COPIERS AND PRINTERS FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS IN 1991 THE COMPANY SAID IT HAD SETTLED OUTSTANDING ISSUES WITH ITS PREFERRED SHAREHOLDERS AGREEING TO CONVERT THE PREFERRED STOCK INTO 5 OF THE COMPANY'S POSTBANKRUPTCY COMMON STOCK AND TO A MUTUAL RELEASE OF CLAIMS THE COMPANY ADDED THAT THE REORGANIZATION PLAN AND THE SETTLEMENT WITH SHAREHOLDERS ARE SUBJECT TO BANKRUPTCYCOURT APPROVAL 9301270171 930127 POLITICS & POLICY CLINTON TO UNVEIL ECONOMIC PLAN FEB 17 HIS TEAM HINTS FISCAL STIMULUS IS LIKELY BY MICHAEL K FRISBY AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL UNVEIL HIS ECONOMIC PLAN FEB 17 IN A SPEECH TO CONGRESS AND HIS LABOR SECRETARY AND SPOKESMAN BOTH SAID THE PROPOSAL PROBABLY WILL INCLUDE SOME SHORTTERM FISCAL STIMULUS IN A TELEVISION INTERVIEW LABOR SECRETARY ROBERT REICH SAID THAT THERE PROBABLY WILL BE A STIMULUS PACKAGE AND THAT IT'S LIKELY TO AMOUNT TO ABOUT 15 BILLION TO 20 BILLION IN A LATER INTERVIEW WITH THE WALL STREET JOURNAL MR REICH ADDED THAT IF THERE IS A STIMULUS PACKAGE AND IT'S STILL AN IF THERE ARE DISCUSSIONS THAT ABOUT A THIRD OF IT WILL BE FOR INFRASTRUCTURE AND WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS TOLD REPORTERS I THINK IT'S VERY LIKELY THAT THERE WILL BE A STIMULUS PACKAGE BUT WE HAVE NO NUMBERS YET ADMINISTRATION OFFICIALS HAVE BEEN HINTING THAT THE FINAL CLINTON PLAN IS LIKELY TO INCLUDE A MODEST STIMULUS TO ASSURE THAT THE ECONOMIC RECOVERY DOESN'T FALTER AS WELL AS A LONGERTERM PROPOSAL TO INCREASE INVESTMENT AND REDUCE THE GAPING BUDGET DEFICIT TESTIFYING ON CAPITOL HILL HOWEVER THE DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE ROBERT REISCHAUER TOLD A SKEPTICAL SENATE BUDGET COMMITTEE THAT THE ECONOMY IS GAINING STRENGTH ON ITS OWN THE ECONOMY APPEARS TO HAVE ENTERED A PERIOD OF SELFSUSTAINING GROWTH BY WHICH I MEAN THAT FURTHER FISCAL AND MONETARY STIMULUS SHOULD NOT BE REQUIRED TO KEEP THE ECONOMY GROWING HE SAID HE ADDED THAT THE STRONGEST CASE THAT CAN BE MADE FOR SHORTRUN FISCAL STIMULUS IS THAT IT MIGHT BE THE SUGAR COATING THAT WAS APPLIED TO A BITTER PILL IT MIGHT BE THE PRICE ONE HAD TO PAY TO GET POLITICAL ACCEPTANCE OF A MAJOR LONGRUN DEFICIT PACKAGE MR CLINTON MET WITH THE BIPARTISAN CONGRESSIONAL LEADERSHIP YESTERDAY AND PARTICIPANTS SAID THE DISCUSSION FOCUSED LARGELY ON HEALTH CARE SENATE MAJORITY LEADER GEORGE MITCHELL SAID THE LEADERS WERE UNITED IN OUR SUPPORT FOR THE OBJECTIVE OF ENACTING COMPREHENSIVE HEALTH CARE LEGISLATION AS SOON AS POSSIBLE SOME OF THE CONGRESSIONAL LEADERS REFERRED TO THE FEB 17 SPEECH TO A JOINT SESSION OF CONGRESS AS THE STATE OF THE UNION ADDRESS BUT THE WHITE HOUSE SAID IT WASN'T INTENDED AS SUCH IN OTHER MATTERS MR REICH SAID HE IS SEEKING WAYS TO USE HIS NEW POST AS A COMBINATION OF CARROTS STICKS AND EXHORTATION FOR US COMPANIES IN PARTICULAR HE IS CONSIDERING USING THE HUGE RESOURCES OF THE LABOR DEPARTMENT'S PARTNERSHIP TRAINING BUDGET TO REWARD COMPANIES THAT HAVE EMPLOYEEFRIENDLY POLICIES AND TO PUNISH THOSE THAT DON'T COMPANIES WILL HAVE TO REALIZE THAT IT MAKES GOOD BUSINESS SENSE HE SAID MR REICH ALSO SAID HE HAS ASKED LAWRENCE KATZ THE AGENCY'S NEW CHIEF ECONOMIST TO COME UP WITH PROOF THAT EMPLOYEEFRIENDLY COMPANIES DO BETTER FINANCIALLY IF THE STUDY BEARS THAT OUT MR REICH IS CONSIDERING BRINGING THAT INFORMATION TO SECURITIES ANALYSTS OR PENSION FUNDS TO PROVE TO THEM THAT GOODEMPLOYEE POLICIES PAY OFF FOR LONGTERM INVESTORS THE LABOR SECRETARY ALSO IS LOOKING FOR WAYS TO TEAM UP THE BEST COMPANIES WITH LABOR OFFICIALS IN A CRUSADE TO PROD COMPANIES INTO USING WORKERS WITHOUT COLLEGE EDUCATIONS MORE EFFECTIVELY SEPARATELY MR CLINTON APPOINTED UNITED NATIONS AMBASSADOR THOMAS PICKERING TO BE AMBASSADOR TO RUSSIA MR PICKERING 62 YEARS OLD IS A CAREER DIPLOMAT WHO HAS SERVED IN A VARIETY OF POSITIONS MR STEPHANOPOULOS WHO ANNOUNCED THE APPOINTMENT SAID MR PICKERING WILL WORK CLOSELY WITH STROBE TALBOTT AN OXFORD CLASSMATE OF MR CLINTON'S WHO HAS BEEN HIRED TO COORDINATE US AID TO THE FORMER SOVIET REPUBLICS MR PICKERING IS THE FIRST HOLDOVER FROM THE REPUBLICAN ADMINISTRATION TO WIN A TOPLEVEL POSITION UNDER MR CLINTON TREASURY SECRETARY LLOYD BENTSEN RECRUITED ANOTHER OF HIS CONGRESSIONAL AIDES MARINA WEISS WHO HAD BEEN MR BENTSEN'S SENIOR HEALTH AIDE WHEN HE HEADED THE SENATE FINANCE COMMITTEE IS TO BECOME DEPUTY ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY RESPONSIBLE FOR HEALTH AND RETIREMENT ISSUES HER APPOINTMENT MARKS THE FIRST TIME A TREASURY JOB HAS BEEN CREATED TO DEAL SPECIFICALLY WITH HEALTH CARE THE TREASURY HAS YET TO FIND AN ASSISTANT SECRETARY FOR TAX POLICY PARTLY BECAUSE EXPERIENCED TAX ATTORNEYS ARE CONCERNED THAT THE CLINTON ADMINISTRATION'S FIVEYEAR LOBBYING BAN WOULD PREVENT THEM FROM APPEARING BEFORE THE INTERNAL REVENUE SERVICE ONCE THEY'VE LEFT THE GOVERNMENT AND RETURNED TO PRIVATE PRACTICE BECAUSE OF THESE CONCERNS THE TREASURY SEEMS TO BE TURNING TO THE ACADEMIC WORLD FOR CANDIDATES TREASURY OFFICIALS ARE TO MEET WITH ANOTHER CANDIDATE DANIEL HALPERIN A PROFESSOR AT GEORGETOWN UNIVERSITY'S LAW SCHOOL TO DISCUSS THE TAX JOB TODAY MR HALPERIN WHO WAS DEPUTY ASSISTANT SECRETARY FOR TAX POLICY IN THE CARTER ADMINISTRATION DECLINED COMMENT THE NEW WHITE HOUSE NATIONAL ECONOMIC COUNCIL LED BY ROBERT RUBIN IS ALSO FILLING OUT ITS STAFF HIRING THOMAS KALIL WHO HAS REPRESENTED THE SEMICONDUCTOR INDUSTRY IN TRADE ISSUES MR KALIL A MEMBER OF THE FIRM OF DEWEY BALLANTINE BUSHBY PALMER & WOOD WORKED ON ECONOMIC AND TRADE POLICY FOR THE CLINTON TRANSITION TEAM MICHAEL DEICH A CONGRESSIONAL BUDGET OFFICE ECONOMIST WITH EXPERTISE IN INFRASTRUCTURE SPENDING HAS ALSO JOINED THE NEW COUNCIL'S STAFF JUDY FEDER WHO HEADED THE TRANSITION TEAM'S HEALTH POLICY GROUP WILL BE NAMED THE CHIEF HEALTH POLICY ANALYST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ACCORDING TO AN ADMINISTRATION OFFICIAL SHE WILL BE CLOSELY INVOLVED IN THE WORK OF THE INTERAGENCY TASK FORCE THAT IS WRITING MR CLINTON'S HEALTH CARE REFORM PROPOSAL IN ADDITION MR CLINTON NAMED JIM KING AS HIS DIRECTOR OF THE OFFICE OF PERSONNEL MANAGEMENT MR KING WAS THE CHIEF OF STAFF FOR SEN JOHN KERRY D MASS IN HIS NEW JOB MR KING WILL OVERSEE THE RECRUITING TRAINING AND PROMOTING OF FEDERAL EMPLOYEES THE PRESIDENT IN MEETING WITH CONGRESSIONAL LEADERS DIDN'T DWELL ON HIS PLAN TO END DISCRIMINATION AGAINST GAYS IN THE MILITARY STILL MR CLINTON'S AIDES WERE PUT ON THE DEFENSIVE BY THE OPPOSITION FROM CAPITOL HILL TOWARD THE IDEA AND WERE PRESSED ON WHETHER A BATTLE WITH CONGRESS OVER THIS ISSUE WOULD JEOPARDIZE MR CLINTON'S HONEYMOON AND MAKE IT MORE DIFFICULT TO PASS HIS LEGISLATIVE AGENDA MR STEPHANOPOULOS SAID IF WE CAN AVOID A LEGISLATIVE BATTLE THAT'S ALL THE GOOD BUT HE INSISTED THAT MR CLINTON REMAINS COMMITTED TO HIS PLEDGE OF REVERSING THE BAN MR CLINTON'S AIDES SAID THEY EXPECT THE PRESIDENT TO ANNOUNCE HIS PROPOSAL LATER THIS WEEK AND THAT HE IS CONSULTING WITH CONGRESSIONAL LEADERS ON IT BUT IT WAS CLEAR THAT THE STRONG OPPOSITION FROM CONGRESS IS TROUBLING THE WHITE HOUSE MR STEPHANOPOULOS INSTRUCTED REPORTERS TO WATCH FOR A SPEECH ON THE SENATE FLOOR BY GEORGIA SEN SAM NUNN CHAIRMAN OF THE ARMED SERVICE COMMITTEE WHEN MR NUNN DID NOT SPEAK DURING THE AFTERNOON AS SCHEDULED IT LED TO SPECULATION THE WHITE HOUSE MAY BE TRYING TO CURB HIS OPPOSITION WITH THE STORM BREWING OVER THIS ISSUE REPUBLICAN STRATEGISTS WERE SECONDGUESSING PRESIDENT BUSH SAYING THAT HE SHOULD HAVE HIT MR CLINTON ON THIS ISSUE DURING THE CAMPAIGN DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9301270170 930127 REVIEW & OUTLOOK EDITORIAL A FIGHT WORTH PICKING BILL CLINTON COULD USE A VICTORY ABOUT NOW BUT TO WIN HE'S GOT TO PICK A FIGHT FROM WHERE WE SIT BEATING UP ON COLIN POWELL AND SAM NUNN WOULD APPEAR TO PRODUCE THE VICTORY THAT IS CALLED PYRRHIC WHY NOT TAKE ON AN OPPONENT ON BEHALF OF THE MIDDLE CLASS WHICH MUST BE FEELING PRETTY JILTED THESE DAYS TAKE ON THE PROTECTIONISTS IN DETROIT IN THE WEEKS SINCE THE ELECTION THE BIG THREE HAVE BEEN LOBBYING FOR A CRIPPLING 25 TAX ON JAPANESE MINIVANS FROM THE WAY THEY CARRY ON YOU'D THINK IT WAS IN THE BAG FOR THEM BUT THE AMERICAN MIDDLE CLASS LOVES THESE HYBRIDS HALF STATION WAGON HALF VAN DETROIT'S AUTO MAKERS DESERVE FULL CREDIT FOR INVENTING THEM BUT AUTO CONSUMERS LIKE THE ARRAY OF MINIVAN CHOICES THEY'VE GOT THOUGH APPARENTLY DETROIT WOULD RATHER REST ON ITS LAURELS THAN COMPETE THEIR CEOS PRACTICALLY DID A VICTORY DANCE ON THE PRESIDENTELECT'S LAWN AFTER A PREINAUGURAL VISIT TO LITTLE ROCK THEN IT WAS OFF TO DELIVER COORDINATED SPEECHES AT THE ECONOMIC CLUB OF DETROIT LAYING OUT THEIR DEMANDS FOR THE NEW ADMINISTRATION NOW THE BIG THREE ARE REPORTEDLY CONSIDERING YET MORE TRADE COMPLAINTS AGAINST VIRTUALLY ALL IMPORTED AUTOS NOT JUST MINIVANS IF SUCCESSFUL UNDER OUR ZANY TRADE LAWS THIS WOULD BE A MULTIBILLION DOLLAR TAX HIKE ON US CAR BUYERS CHRYSLER FORD AND EVEN GM HAVE ALL MADE WELLEARNED PROGRESS IN RECENT YEARS BUT THAT DOESN'T JUSTIFY THIS EFFORT TO OFFLOAD THEIR PROBLEMS ONTO THE CARBUYING PUBLIC A PRESIDENTIAL REJECTION OF THIS SOAKTHENONRICH STRATEGY COULDN'T COME AT A RIPER MOMENT AND WOULD SAVE THE PRESIDENT GRIEF IN THE LONG RUN MR CLINTON'S REIGN IS BARELY A WEEK OLD BUT HE'S ALREADY BEING TREATED AS AN EASY MARK LET'S TRY TO COUNT THE INDUSTRIES THAT ARE SUDDENLY CRAWLING ALL OVER HIM CLAMORING FOR PROTECTIONIST FAVORS STEEL DOMESTIC OIL AIRLINES MAKERS OF CERAMIC COMPUTERCHIP HOUSINGS THE LINE WILL RING THE BELTWAY IT'S WORTH REMEMBERING WHY THIS IS BAD AND WORTH STOPPING AMERICA'S PRESIDENT IS THE CLOSEST THING THE WORLD HAS TO A LEADER AND FOR THE LAST HALF CENTURY PRESIDENTS HAVE RECOGNIZED A SPECIAL DUTY TO PROTECT HUMANITY'S STAKE IN AN OPEN TRADING SYSTEM TODAY GATT AND NAFTA ARE BOTH HANGING IN THE BALANCE THE DIRECTORGENERAL OF JAPAN'S MITI WAS MURMURING DARKLY THIS WEEK ABOUT RETALIATION AGAINST UNILATERAL TRADE SANCTIONS WITH ONE OF THE FEW GROWING ECONOMIES THANKS LARGELY TO EXPORTS AMERICA HARDLY NEEDS A TRADE WAR YET TRADE POLICY IS IN DANGER OF DEGENERATING INTO A SPECIALINTEREST PINATA THE CONFIRMATION TESTIMONY OF COMMERCE SECRETARY RON BROWN OF PATTON BOGGS & BLOW COULDN'T HAVE BEEN COMFORTING TO THE WORLD'S HARDWORKING MASSES IT WAS ONE LONG COMEHITHER FOR SPECIAL PLEADERS ACTION NOT IDEOLOGY WILL BE MY WATCHWORD HE BLATHERED WE HAVE TO STOP GETTING ROLLED UNTIL LAST WEEK MICKEY KANTOR'S MOST FAMOUS STATEMENT ON TRADE WAS TO ADVISE CANDIDATE CLINTON TO POLITICK AGAINST NAFTA IN HIS TESTIMONY ON THE WAY TO BECOMING SPECIAL TRADE REPRESENTATIVE WITH AN OFFICE IN THE WHITE HOUSE HE PROUDLY DECLARED HIMSELF THEOLOGYFREE WHICH BRINGS UP BACK TO THE MIDDLE CLASS EVERY ACT OF PROTECTIONISM IS A DIRECT TAX ON CONSUMERS MOST OF WHOM INTERESTINGLY AREN'T THE EVIL RICH PRINCETON'S ALLAN BLINDER NOW A MEMBER OF MR CLINTON'S COUNCIL OF ECONOMIC ADVISERS SPELLED IT OUT IN HIS BUSINESS WEEK COLUMN A FEW YEARS AGO MORE OFTEN THAN NOT PROTECTIONIST MEASURES REDISTRIBUTE INCOME FROM AVERAGE CITIZENS TO THOSE DOING BETTER THAN AVERAGE WHILE HARMING ECONOMIC EFFICIENCY IN THE BARGAIN HE WROTE THAT IS WHY ECONOMISTS ON BOTH THE LEFT AND THE RIGHT ARE MOSTLY FREE TRADERS IF THE INDUSTRIES NOW LINING UP FOR IMPORT PROTECTION GET THEIR WAY THE PRICES OF LOTS OF THINGS WILL GO UP MR CLINTON SHOULD STEP IN BETWEEN THESE SPECIAL INTERESTS AND US CONSUMERS AND TELL THE PROTECTIONISTS TO PICK ON SOMEONE THEIR OWN SIZE 9301270169 930127 WHO'S NEWS HARSCO CORP HARSCO CORP HARRISBURG PA JAMES E MARLEY 57YEAROLD CHAIRMAN OF AMP INC WAS NAMED TO THE BOARD OF THIS INDUSTRIAL COMPANY INCREASING BOARD MEMBERSHIP TO 12 9301270168 930127 MIRAGE RESORTS CLOSES DUNES HOTEL MULLS BUILDING REPLACEMENT LAS VEGAS MIRAGE RESORTS INC HAS CLOSED THE DUNES HOTEL & COUNTRY CLUB ALONG THE STRIP AND IS MULLING THE CONSTRUCTION OF A WATERTHEMED CASINO RESORT THAT WOULD INCLUDE AN ARTIFICIAL LAKE WINDSURFING WATERSKIING AND OTHER ATTRACTIONS THE 38YEAROLD DUNES ONCE THE PLAYGROUND OF HOLLYWOOD STARS AND ALLEGED ORGANIZEDCRIME FIGURES WAS CLOSED AT MIDNIGHT MONDAY MIRAGE OFFICIALS SAID THE 164ACRE PROPERTY'S GOLF COURSE WOULD BE REOPENED BUT MOST OF THE BUILDINGS WOULD BE RAZED FOR FUTURE DEVELOPMENT LAST OCTOBER MIRAGE AGREED TO BUY THE RESORT FROM MASAO NANGAKU A JAPANESE INVESTOR WHO PAID 1577 MILLION FOR THE PROPERTY IN 1987 MIRAGE PAID 70 MILLION FOR THE ACREAGE ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING MIRAGE HAD PLANNED TO CLOSE THE HOTEL AT SOME POINT AFTER IT ACQUIRED IT DANIEL R LEE MIRAGE'S CHIEF FINANCIAL OFFICER CALLED THE PLANS FOR A BEACHCLUB RESORT PRELIMINARY AND SAID THE PLAN COULD CHANGE DEPENDING ON MARKET CONDITIONS AND OTHER FACTORS AS CURRENTLY ENVISIONED THE SITE WOULD INCLUDE A 14ACRE ARTIFICIAL LAKE A 3000ROOM HOTELCASINO A BEACH AREA AND OTHER FEATURES SUCH A PROJECT COULD COST ABOUT 500 MILLION INCLUDING LAND COSTS AND OTHER EXPENSES AND MIGHT OPEN IN 1996 MR LEE SAID MIRAGE OFFICIALS CAUTIONED THAT CONSTRUCTION WORK ON THE NEW PROJECT WOULD NOT BEGIN UNTIL AFTER THE OPENING OF MIRAGE'S CURRENT PROJECT THE 430 MILLION TREASURE ISLAND CASINO WHICH IS SCHEDULED FOR NOVEMBER TWO OTHER MAJOR CASINOS ARE ALSO SCHEDULED TO OPEN IN THE NEXT YEAR OR SO AND MR LEE SAID THE COMPANY WANTS TO SEE HOW THE MARKET FARES WITH THE BURST OF NEW COMPETITION IN THE MEANTIME MIRAGE IS APPROACHING ENTERTAINMENT COMPANIES TO FIND ONE THAT MIGHT PAY TO FILM THE SITE BEING DYNAMITED HE ADDED 9301270167 930127 WHO'S NEWS GLENAYRE TECHNOLOGIES INC GLENAYRE TECHNOLOGIES INC CHARLOTTE NC STAN CIEPCIELINSKI WAS NAMED CHIEF FINANCIAL OFFICER FOR THE MAKER OF PAGING AND VOICEMESSAGING SYSTEMS MR CIEPCIELINSKI FORMERLY WAS DIRECTOR OF FINANCE FOR SQUARE D CO IN CHARLOTTE 9301270166 930127 INTERNATIONAL UK REDUCES INTEREST RATES TO 16YEAR LOW BIGGERTHANEXPECTED CUT IS AN EFFORT TO REIGNITE A STAGNANT ECONOMY BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AUTHORITIES CUT INTEREST RATES IN THE UNITED KINGDOM TO THEIR LOWEST LEVEL SINCE 1977 IN A SCRAMBLE TO REIGNITE BRITAIN'S STAGNANT ECONOMY THE MOVE WHICH LOWERED THE BANK OF ENGLAND'S KEY LENDING RATE ONE PERCENTAGE POINT TO 6 TOOK FINANCIAL MARKETS BY SURPRISE SPARKING A STRONG RALLY IN STOCK AND BOND PRICES BUT SENDING THE POUND SKIDDING AGAINST OTHER MAJOR CURRENCIES SEVERAL OF BRITAIN'S BIGGEST MORTGAGE LENDERS IMMEDIATELY CUT THE RATES THEY CHARGE BORROWERS BY ABOUT A HALFPOINT ANALYSTS SAID THE REDUCTIONS SHOULD SUPPORT HOUSING PRICES WHICH HAVE BEEN FALLING FOR NEARLY TWO YEARS MANY MORTGAGE RATES IN BRITAIN ARE NOW AT 24YEAR LOWS PRIME MINISTER JOHN MAJOR SAID THE CUT SHOULD PUT THE COUNTRY FIRMLY ON THE ROAD TO ECONOMIC RECOVERY IT WAS A GOOD MOVE HE TOLD THE BBC WHILE ON AN OFFICIAL VISIT TO INDIA GOOD FOR CONFIDENCE GOOD FOR INVESTMENT GOOD FOR JOBS CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT SAID THE ECONOMY'S SLUGGISH STATE AND MODEST INFLATION JUSTIFIED THE REDUCTION CONSUMER PRICES ARE RISING AT A 37 ANNUAL RATE THOUGH THEY ARE WIDELY EXPECTED TO BE RISING AT CLOSER TO A 45 RATE BY YEAR END PRIVATE ECONOMISTS SAID THE MOVE WAS PROMPTED BY RECENT STATISTICS SHOWING THE ECONOMY STILL IN RECESSION DESPITE CUTS IN INTEREST RATES TOTALING FIVE PERCENTAGE POINTS IN THE PAST 12 MONTHS THE AUTHORITIES HAVE SHOWN THAT THEIR MAIN CONCERN IS TO SPEED UP THE RECOVERY SAID ANDREW BRITTON DIRECTOR OF THE NATIONAL INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH IN LONDON THEY'RE PREPARED TO DO THIS AT THE RISK OF HIGHER INFLATION NEW BANK AND MORTGAGE LENDING AS DEFINED BY THE BROAD MONEY AGGREGATE M4 ROSE 200 MILLION 3112 MILLION IN DECEMBER JUST MANAGING TO REVERSE NOVEMBER'S 200 MILLION DECLINE YEARONYEAR FIGURES SHOWED M4 RISING AT A 37 RATE IN DECEMBER DOWN FROM NOVEMBER'S 46 MEANWHILE RETAIL SALES FELL 07 IN DECEMBER FROM NOVEMBER AND UNEMPLOYMENT IS RUNNING AT 103 COMPARED WITH 89 A YEAR AGO CLEARLY THEY WERE WORRIED ABOUT THE DATA LAST WEEK BRIAN HILLIARD AN ECONOMIST AT SOCIETE GENERALE STRAUSS TURNBULL SECURITIES LTD IN LONDON SAID OF UK OFFICIALS THEY WANT TO MAKE ABSOLUTELY SURE THAT THERE'S A RECOVERY COMING MANY FOUND THE TIMING OF THE RATE REDUCTIONS CURIOUS HOWEVER COMING ONLY THREE DAYS AFTER EDDIE GEORGE WAS NAMED TO SUCCEED ROBIN LEIGHPEMBERTON AS GOVERNOR OF THE BANK OF ENGLAND MR GEORGE IS REPUTED TO BE A TOUGH INFLATION FIGHTER AND OPPOSED TO SHARP INTERESTRATE REDUCTIONS STILL ANALYSTS EXPECT RATES TO BE CUT ANOTHER PERCENTAGE POINT ABOUT THE TIME THE CHANCELLOR PRESENTS HIS INTERIM BUDGET MARCH 16 THE BUDGET STATEMENT MIGHT INCLUDE TAX INCREASES TO REDUCE BRITAIN'S GOVERNMENT DEFICIT THOUGH THE PRIME MINISTER IS BELIEVED TO OPPOSE SUCH A MOVE ARGUING IT MIGHT ENDANGER ANY ECONOMIC REBOUND UK INTEREST RATES WERE LAST CUT NOV 13 BY ONE PERCENTAGE POINT RATES HAVE FALLEN STEADILY SINCE BRITAIN WITHDREW THE POUND FROM THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM IN MIDSEPTEMBER MR MAJOR HAS RULED OUT REENTERING THE MECHANISM IN 1993 PREFERRING INSTEAD A GOFORGROWTH STRATEGY AN EASING OF MONETARY POLICY BY THE BUNDESBANK GERMANY'S CENTRAL BANK WHICH IS THOUGHT TO BE LIKELY BY MARCH PROBABLY WOULD ALLOW UK RATES TO FALL EVEN FURTHER WITHOUT DAMAGING STERLING'S VALUE GROWTH EXPECTATIONS ARE STILL MODEST DESPITE THE RECENT CUTS WITH MANY ECONOMIST EXPECTING UK GROSS DOMESTIC PRODUCT TO POST A 05 INCREASE THIS YEAR UK BASE RATES WERE LAST CUT TO 6 IN OCTOBER 1977 INFLATIONARY PRESSURES SOON TOOK THEIR TOLL AND RATES THEN ROSE 15 PERCENTAGE POINTS WITHIN SIX MONTHS 9301270165 930127 COMPUTER WARS WINNERS AND LOSERS ORDER FROM CHAOS COMPUTER INDUSTRY DIVIDES INTO CAMPS OF WINNERS AND LOSERS BALANCE OF POWER IS TILTED BY STEADY PRICE DECLINES AND LINKING OF MACHINES US COMPETITIVENESS GROWS BY G PASCAL ZACHARY AND STEPHEN KREIDER YODER STAFF REPORTERS OF THE WALL STREET JOURNAL THE FOURTH QUARTER OF 1992 MAY GO DOWN IN COMPUTER ANNALS AS THE POINT WHEN INDUSTRY TURBULENCE REACHED ITS APEX RESULTS FROM THE QUARTER SHOW INDUSTRY MAINSTAYS FLOUNDERING AND NEWCOMERS LEAPING TO NEW HEIGHTS INTERNATIONAL BUSINESS MACHINES CORP POSTED ITS FIRST EVER OPERATING LOSS WHILE INTEL CORP AND MICROSOFT CORP ONCE MERE SUPPLIERS OF IBM REPORTED HUGE GAINS IN EARNINGS AND REVENUE DIGITAL EQUIPMENT CORP DEC SAW ITS STOCKMARKET VALUE ECLIPSED BY A LITTLEKNOWN COMPANY NAMED CISCO SYSTEMS INC WHOSE BOOMING SALES ARE STILL ONLY ABOUT ONETHIRTIETH OF DEC'S ERSTWHILE SOFTWARE HIGHFLIERS LIKE SYMANTEC CORP POSTED LOSSES WHILE OTHER SOFTWARE HOUSES SUCH AS ORACLE CORP DOUBLED PROFITS BUT THERE IS ORDER BEHIND THE APPARENT CHAOS THE SINKING COST OF COMPUTING POWER AND A SEA CHANGE IN HOW BUSINESSES USE COMPUTERS HAVE DIVIDED THE INDUSTRY INTO DISTINCT CAMPS OF WINNERS AND LOSERS THE NEWS CONVEYED BY THE FOURTH QUARTER IS THAT THE GAP BETWEEN THE CAMPS IS WIDENING MORE QUICKLY THAN EXPECTED MAKING AND BREAKING FORTUNES IN A BROAD RANGE OF COMPUTERRELATED INDUSTRIES THE SHIFT IS ACCELERATING AND IBM'S DECLINE IS EVIDENCE OF THAT SAYS CHARLES FERGUSON A CAMBRIDGE MASS CONSULTANT AND AUTHOR OF COMPUTER WARS A NEW BOOK CATALOGING IBM'S TROUBLES AS PAINFUL AS IT HAS BEEN FOR SOME THE TURMOIL HAS PRODUCED MORE WINNERS THAN LOSERS AMONG AMERICAN COMPANIES INDUSTRY PROFITS AS A WHOLE ARE HIGHER AND TECHNOLOGY STOCKS AS A GROUP ARE UP 28 IN SIX MONTHS MOREOVER THE MELEE HAS GIVEN US MAKERS LEADERSHIP IN KEY NEW MARKETS AND ENHANCED US GLOBAL COMPETITIVENESS IN TECHNOLOGY US COMPANIES WHICH IN THE 1980S WERE FEARING AN INVASION OF JAPANESE COMPUTERS ARE INSTEAD ASSAULTING A COMPLACENT JAPANESE MARKET DOMINATED BY CORPORATE BUREAUCRACIES THAT LOOK A LOT LIKE IBM'S IN THE US WINNERS AND LOSERS ALIKE CAN TRACE THEIR LOT BACK TO THE MOTHER OF HIGHTECH TRENDS THE PLUMMETING PRICE OF COMPUTING POWER THANKS TO SHRINKING CIRCUITS THE PRICE OF A UNIT OF PROCESSING POWER ON A CHIP HAS FALLEN BY HALF ROUGHLY EVERY 18 MONTHS EVER SINCE THE LATE1960S INVENTION OF MICROPROCESSORS WHICH COMBINE ON ONE PIECE OF SILICON GROUPS OF CIRCUITS THAT CAN BE PROGRAMMED THE DECLINING COST OF MICROPROCESSORS ALONG WITH VICIOUS PRICE WARS SPURRED A DESKTOPCOMPUTER BOOM THAT IN TURN SPARKED ANOTHER TREND THE RISE OF SMALLCOMPUTER NETWORKS ESTABLISHED THROUGH THE USE OF COMMUNICATIONS TECHNOLOGY THAT OFFER COMPELLING COST ADVANTAGES OVER BIG COMPUTERS TO A LARGE EXTENT THE NETWORKING TREND IS WHAT SEPARATES WINNERS FROM LOSERS BIG BLUE AS IBM IS CALLED VIRTUALLY IGNORED THE TREND BETTING INSTEAD THAT COMPANIES WOULD KEEP USING LARGE COMPUTERS THE WAY THEY ALWAYS HAD INDEED IBM EVEN STIFLED INNOVATIONS THAT COULD HAVE MADE IT THE DOMINANT PLAYER IN SMALL COMPUTERS LIKEWISE DIGITAL FOUNDER KENNETH OLSEN FAILED UNTIL TOO LATE TO SEE THE UNSTOPPABLE RISE OF THE PC AND UP TO THE TIME HE WAS FORCED OUT OF OFFICE AS PRESIDENT LAST YEAR WAS PUSHING THE DEVELOPMENT OF YET ANOTHER GENERATION OF THE LARGE MACHINES KNOWN AS MINICOMPUTERS IN BOTH CASES SLOW REACTION STEMMED PARTLY FROM A RELUCTANCE TO UNDERMINE SALES OF CASHCOW LARGE MACHINES YOU HAVE TO FACE UP TO THE QUESTION OF DESTROYING YOUR PRODUCT WITH NEW PRODUCTS SAYS JOHN MORGRIDGE CHIEF EXECUTIVE OF CISCO WHICH MAKES NETWORKING HARDWARE IF YOU DON'T DO IT SOMEONE ELSE WILL SUPPLIERS SUCH AS LSI LOGIC CORP MADE THE MISTAKE OF SIMPLY FOLLOWING THE TITANS EVERYONE EXPECTED THE MERGER OF COMPUTERS AND COMMUNICATIONS BUT MOST THOUGHT IT WOULD BENEFIT GIANTS LIKE IBM AND AMERICAN TELEPHONE & TELEGRAPH CO SAYS WILFRED CORRIGAN CHIEF EXECUTIVE OF LSI LOGIC WHICH IS ONLY NOW RECOVERING FROM MISGUIDED INVESTMENTS IN FACTORIES MEANT TO SUPPLY OLDLINE MANUFACTURERS NOBODY EXPECTED THE MERGER TO TAKE PLACE ON THE DESKTOP AND THE NAMES TO BE A LOT OF UNKNOWNS INDEED AN IMPORTANT CONSEQUENCE OF NETWORK COMPUTING IS THAT USERS CAN STRING TOGETHER A SYSTEM FROM VARIOUS MANUFACTURERS DESTROYING OLDLINE COMPANIES' FRANCHISES THE MOST IMPORTANT TREND IN THE LAST TWO DECADES SAYS REESE JONES CHAIRMAN OF NETWORKING PIONEER FARALLON COMPUTING INC IS THE SHIFT FROM CUSTOMERS RELYING ON JUST ONE SUPPLIER TO BUYING FROM MANY THE BIGGEST BENEFICIARIES OF THE PC BOOM ARE INTEL AND MICROSOFT IN 1980 IBM CASUALLY CEDED TO THEM WHAT PROVED TO BE THE TWO CRUCIAL COMPONENTS OF THE PC THE MICROPROCESSOR AND THE OPERATING SOFTWARE BOTH WENT ON TO ACHIEVE DOMINANCE MICROSOFT RAISED ITS SHARE OF THE PC SOFTWARE MARKET TO 44 LAST YEAR FROM 29 WHILE INTEL LEAPFROGGED TWO JAPANESE COMPANIES TO BECOME THE WORLD'S BIGGEST CHIP MAKER BOTH POSTED RECORD SALES AND EARNINGS LAST YEAR AND THEIR STOCKMARKET VALUES ARE QUICKLY APPROACHING IBM'S THE TWO ARE CASE STUDIES IN A CENTRAL ELEMENT OF TODAY'S HIGHTECH WORLD THE WINNERS ARE THOSE THAT GRAB A MARKET EARLY THEN SET A STANDARD THAT THEY OWN BUT THAT IS IN INDUSTRY LINGO OPEN INTEL'S MICROPROCESSORS HAVE BECOME AN OPEN STANDARD A DESIGN THAT THOUSANDS OF COMPANIES CAN FREELY BUILD PRODUCTS AROUND YET THE STANDARD IS INTELOWNED SO THE COMPANY CAN DECIDE WHERE TO MOVE THE STANDARD ANOTHER WINNER NOVELL INC IS INCREASINGLY THE THIRD FORCE IN THE OLIGARCHY OF NEW LEADERS ITS SOFTWARE WHICH ENABLES DIVERSE COMPUTERS TO SHARE FILES PRINTERS AND OTHER RESOURCES HAS BECOME AN INDUSTRY STAPLE AND HELPED NOVELL EARN 249 MILLION ON SALES OF 933 MILLION IN ITS LATEST FISCAL YEAR WHEREAS OLDLINERS SUCH AS IBM AND DEC LARGELY LINKED TOGETHER ONLY THEIR OWN SYSTEMS NOVELL WHOSE MARKET CAPITALIZATION IS NOW A THIRD OF IBM'S TIES TOGETHER VIRTUALLY EVERYTHING WHAT WE REALIZED EARLY ON IN OUR BUSINESS IS THAT WE COULDN'T GO IT ALONE SAYS RAYMOND NOORDA NOVELL'S CEO AS JOHN YOUNG FORMER CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO SEES IT INTEL MICROSOFT AND NOVELL HAVE REPLACED IBM AND DEC AS THE MODELS OF THE COMPUTER INDUSTRY THEY ARE NOW REALLY RIDING THIS NEW PARADIGM HE SAYS WHAT FOLLOWS IS A LOOK AT WHO IS WINNING AND WHO ISN'T FOR PCS 1992 WAS THE YEAR OF THE LOSER COMPAQ COMPUTER CORP ABANDONING AN OLD RELUCTANCE TO CANNIBALIZE ITS HIGHPROFITMARGIN PC LINE SPARKED PRICE WARS THAT HURT NEARLY EVERYONE'S EARNINGS THE HUGE NUMBER OF PCS SOLD INTEL'S ANDREW GROVE ESTIMATES WORLDWIDE 1992 PC SALES AT NEARLY 40 MILLION UNITS IN TURN HELPED CHIP MAKERS SUCH AS INTEL AND ADVANCED MICRO DEVICES INC DRIVE PRICES DOWN SHARPLY SPURRING EVEN MORE DEMAND PRICES OF TYPICAL PCS FELL BY HALF IBM SLOW TO LOWER ITS PRICES LOST ITS SPOT AS THE NO 1 PC MAKER BY SOME ESTIMATES NIPPON STEEL CORP THE WORLD'S BIGGEST STEEL MAKER SHUT DOWN ITS US PC OPERATION EVEREX SYSTEMS INC AFTER A STRING OF MONEYLOSING QUARTERS FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION THIS YEAR AND MANY OTHER PC MAKERS CONTINUE TO SEE RED INK TODAY'S PC WINNERS ARE THOSE WHO SAW EARLY THAT SELLING PCS WAS BECOMING A COMMODITY BUSINESS MUCH LIKE SELLING TELEVISION SETS OR TOASTERS AND THAT PC MAKERS WERE BECOMING ESSENTIALLY A DISTRIBUTION NETWORK FOR INTEL AND MICROSOFT TECHNOLOGIES THAT MEANS THE PRIZE TENDS TO GO TO THE MAKER WITH THE MOST INNOVATIVE LEAST COSTLY STRATEGY IN PACKAGING AND MARKETING THUS DELL COMPUTER CORP EMERGED AS THE NO 5 PC VENDOR WORLDWIDE LAST YEAR UP FROM NO 11 THE YEAR BEFORE LIKEWISE GATEWAY 2000 WHICH PERFECTED THE ART OF SELLING PCS MAILORDER GAINED MUCH GROUND APPLE COMPUTER INC WHICH EARLY ON BUILT NETWORKING CAPABILITIES INTO ITS MACINTOSH COMPUTER HAS KEPT CONTROL OF ITS OPERATING SOFTWARE AND FOLLOWED A SEPARATE PATH ON MICROPROCESSORS MAKING THE COMPANY A KIND OF JUNIOR VERSION OF INTEL AND MICROSOFT MAKERS OF THESE HIGHPOWERED DESKTOP COMPUTERS BUILT AROUND MICROPROCESSORS LONG POPULAR WITH ENGINEERS HAVE GAINED HANDSOMELY FROM NETWORKING THE WORLD MARKET FOR WORKSTATIONS HAS MORE THAN QUADRUPLED IN FIVE YEARS TO ABOUT 10 BILLION ESTIMATES INTERNATIONAL DATA CORP IDC A MARKETRESEARCH FIRM LED BY SUN MICROSYSTEMS INC WORKSTATION MAKERS SUCH AS SILICON GRAPHICS INC AND HP'S OLD APOLLO UNIT EARLY ON BUILT HARDWARE AND SOFTWARE INTO THEIR MACHINES THAT MADE IT EASY FOR THEM TO TAP INTO NETWORKS THAT NETWORKFRIENDLINESS IS MAKING WORKSTATIONS INCREASINGLY POPULAR FOR DEMANDING BUSINESS FUNCTIONS AND AS DATABASE SERVERS IN COMPUTER ROOMS SUN HAS GRABBED A 40 SHARE WITH HP SECOND AT 18 IBM HAS EKED OUT A LUCRATIVE SLICE OF THE WORKSTATION PIE WITH ITS SUCCESSFUL RS/6000 MACHINE THE BIG LOSER IN WORKSTATIONS IS DEC THE COMPANY STUCK TOO LONG TO ITS OWN AGING ARCHITECTURE IT HALFHEARTEDLY SWITCHED TO A CHIP DESIGNED BY SILICON GRAPHICS'S MIPS UNIT THEN LAST YEAR ANNOUNCED IT WOULD DESIGN ITS OWN CHIP DEC'S MARKET SHARE FELL TO 99 LAST YEAR FROM 137 SAYS IDC'S NANCY BATTEY IT IS UNCLEAR WHETHER PC AND WORKSTATION SALES ARE DIRECTLY STEALING FROM OLDLINE MACHINES WHICH TYPICALLY COST MILLIONS OF DOLLARS AND SIT IN AIRCONDITIONED COMPUTER ROOMS BUT IT IS CERTAIN THAT GROWTH IN COMPUTER SALES IS LARGELY ELUDING BIG IRON THESE DAYS SALES OF BOTH MINIS AND MAINFRAMES PEAKED IN 1991 AND MAINFRAME SHIPMENTS LAST YEAR FELL TO THE LOWEST LEVELS SINCE 1987 IDC SAYS NETWORK COMPUTING IS SO FASHIONABLE IT HAS BECOME POLITICALLY INCORRECT TO BUY A MAINFRAME JOHN LEWIS CEO OF AMDAHL CORP TOLD FINANCIAL ANALYSTS LATE LAST YEAR AS HE WAS EXPLAINING THE MAINFRAME MAKER'S MONEYLOSING THIRD QUARTER LOSERS ABOUND WANG LABORATORIES INC IS IN CHAPTER 11 BANKRUPTCY DEC IS EXPECTED TO REPORT A THIRD CONSECUTIVE MONEYLOSING YEAR IBM HAS REPORTED TOTAL NET LOSSES OF 78 BILLION OVER TWO YEARS OF FALLING REVENUE THE BIGGEST SIN OF THESE COMPANIES THEY STUBBORNLY REFUSED TO WIND DOWN THEIR OLD CUSTOMDESIGNED MACHINES IN FAVOR OF COMPUTERS USING INDUSTRY STANDARDS AND CHEAP OFFTHESHELF MICROPROCESSORS EVEN AS IT BECAME CLEARER THAT PCS WOULD THREATEN THE HEGEMONY OF MAINFRAMES IBM WAS RELUCTANT TO DO ANYTHING THAT MIGHT HASTEN THE ARRIVAL OF A DAY WHEN PCS COULD HANDLE MOST COMPUTING TASKS DEC LONG RESISTED EVEN DEVELOPING ITS OWN PCS AS MR OLSEN FOR A TIME SAW THE MACHINES AS LITTLE MORE THAN TOYS NOW BOTH DEC AND IBM ARE PUSHING PCS AND WORKSTATIONS WITH SOME SUCCESS DEC HIT 500 MILLION IN PC SALES LAST YEAR WHILE IBM STANCHED ITS LOSS OF PC MARKET SHARE STILL BOTH COMPANIES MUST ABSORB THE COSTS OF WINDING DOWN OUTMODED PRODUCT LINES AS IT HAPPENS THOSE THAT LOST OUT HEAVILY TO IBM MAINFRAMES IN THE 1980S ARE IN BETTER SHAPE NOW UNISYS CORP AND AT&T'S NCR CORP UNIT NOW ARE WELL ALONG ON STRATEGIES TO CONVERT THEIR COMPUTER LINES TO MAINFRAMECLASS MACHINES THAT USE GANGS OF INTEL MICROPROCESSORS FOR IBM MEANWHILE ITS GAINS AT THEIR EXPENSE HELPED MASK THE REALITY THAT SMALL GUYS WERE EATING INTO BIG BLUE'S GROWTH MARKETS NCR FIGURES THAT A UNIT OF COMPUTING POWER IN ITS NEW INTELBASED MACHINES COSTS A BUYER ROUGHLY AN EIGHTH WHAT THE SAME UNIT OF POWER COSTS A BUYER OF NCR'S ONE REMAINING OLDLINE MAINFRAME A MACHINE FROM WHICH IT IS MILKING THE LAST PROFITS ANOTHER WINNER IN NEWSTYLE MICROPROCESSORBASED MAINFRAMES AIMED AT THE NETWORKING MARKET UPSTART SEQUENT COMPUTER SYSTEMS INC WHOSE SALES GREW 44 IN 1992'S FIRST NINE MONTHS THE STORY IN SUPERCOMPUTERS MACHINES BUILT FOR SHEER SPEED IS MUCH THE SAME CRAY RESEARCH INC WITH ITS LARGE PROPRIETARY SYSTEMS SAW SALES DECLINE LAST YEAR AND REPORTED A NET LOSS OF 149 MILLION COMPANIES SUCH AS INTEL AND THINKING MACHINES CORP ARE GRABBING MARKET SHARE WITH MASSIVELY PARALLEL SUPERCOMPUTERS THAT USE HUGE NUMBERS OF OFFTHESHELF MICROPROCESSORS EXPLOITING THE ECONOMIES OF SCALE CREATED BY THE PC INDUSTRY SILICON GRAPHICS EMBOLDENED BY ITS WORKSTATION SUCCESS PLANS TO ANNOUNCE A NEW LOWPRICED ENTRY INTO SUPERCOMPUTERS TODAY IN PC SOFTWARE HOME TO SOME OF THE NATION'S MOST VALUABLE CORPORATE PROPERTIES TODAY'S LOSERS ARE OFTEN THOSE THAT FOLLOWED THE OLD COMPUTER TITANS MANY LOSERS' WOES AROSE FROM DECISIONS IN 1987 TO THROW THEIR BEST EFFORTS BEHIND CREATING PROGRAMS FOR IBM'S OS/2 OPERATING SYSTEM WHICH BIG BLUE VOWED WOULD REPLACE MICROSOFT'S MARKETLEADING DOS PROGRAM WE TOOK IBM AT ITS WORD SAYS ALAN ASHTON THE CEO OF CLOSELY HELD WORDPERFECT CORP BUT OS/2 IS A BIG DISAPPOINTMENT SO FAR AND MICROSOFT ITSELF A FORMER PARTICIPANT IN THE OS/2 PROJECT STEPPED INTO THE VOID WITH ITS NOWBOOMING WINDOWS ENHANCEMENT TO ITS DOS OPERATING SYSTEM SOME OF THE BIGGEST AND BESTKNOWN NAMES IN SOFTWARE WORDPERFECT LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC AMONG OTHERS HAVE SEEN THEIR PROFITS PINCHED AND SALES GROWTH SLOWED BECAUSE OF A FAILURE TO TRANSFER THEIR APPLICATIONS TO WINDOWS QUICKLY FOR MUCH THE SAME REASON SYMANTEC A WALL STREET FAVORITE FOR YEARS BECAUSE OF ITS RELIABLE EARNINGS GROWTH HAS SEEN ITS STOCK TUMBLE 75 IN THE PAST TWO YEARS MICROSOFT ON THE OTHER HAND WAS OUT EARLY WITH PROGRAMS FOR WINDOWS AND GAINED MARKET SHARE IN THE TWO MOST COVETED APPLICATIONS CATEGORIES WORDPROCESSING AND SPREADSHEETS OTHER WINNERS ARE A BEVY OF SMALLER PLAYERS THAT SHIFTED TO WINDOWS WHICH NOW IS PRELOADED INTO THE MAJORITY OF PCS SOLD IN THE US A PRIME EXAMPLE CLOSELY HELD INTUIT CORP WHICH REPORTED AN 88 INCREASE IN REVENUE TO 83 MILLION IN ITS LATEST FISCAL YEAR INTUIT WHICH MAKES A HOMEACCOUNTING PACKAGE CALLED QUICKEN WAS AN EARLY LEADER IN ITS MARKET AND ONE OF THE FIRST TO INTRODUCE A WINDOWS VERSION OF ITS PRODUCT WHICH NOW DOMINATES THE PERSONALFINANCE MARKET DESPITE DECLINING MAINFRAME SALES BIG MAINFRAMESOFTWARE SUPPLIERS ARE POSTING GAINS BY ACQUIRING MANY SMALL PRIVATE COMPANIES AND SATISFYING DEMAND FOR ONESTOP SHOPPING COMPUTER ASSOCIATES INTERNATIONAL INC THE BIGGEST SUPPLIER REPORTED HIGHERTHANEXPECTED PROFITS AND SALES FOR ITS FOURTH QUARTER WITH SALES FROM MAINFRAME SOFTWARE RISING TO 392 MILLION FROM 340 MILLION WINNERS IN CHIPS ARE OFTEN THOSE THAT BET THEIR FORTUNES ON EVEN BIGGER WINNERS ADVANCED MICRO REVERSED A STRING OF LOSSES AFTER IT BEGAN CLONING INTEL'S POPULAR 386 MICROPROCESSORS IN 1991 AND THE PC PRICE WARS HAVE SPURRED DEMAND FOR ADVANCED MICRO'S CHIPS LITTLE CIRRUS LOGIC INC WHICH GOT AN EARLY LEAD IN CHIPS THAT CONTROL PC DISK DRIVES SAW ITS FOURTHQUARTER NET INCOME GROW NEARLY SEVENFOLD TO 108 MILLION ON DOUBLED SALES COMPANIES LIKE TEXAS INSTRUMENTS INC AND MOTOROLA INC ARE PROFITING FROM SPECIALIZED CHIPS FOR TASKS SUCH AS COMPUTER GRAPHICS AND TELECOMMUNICATIONS ON THE OTHER HAND ERSTWHILE HIGHFLIER CHIPS & TECHNOLOGIES INC WHICH PIONEERED THE MARKET FOR CHIP SETS THAT SIMPLIFIED PC'S INNARDS AND HELPED PUSH THEIR PRICES DOWN HAS POSTED A STRING OF MONEYLOSING QUARTERS BECAUSE DOZENS OF OTHERS HAVE JUMPED IN AND DRIVEN THE PROFITS OUT OF THE MARKET JAPANESE CHIP MAKERS ARE SUFFERING BADLY AFTER PUMPING BILLIONS OF DOLLARS INTO FACTORIES FOR MEMORY CHIPS ONLY TO SEE SOUTH KOREAN MAKERS GRAB A LARGE SHARE OF THAT MARKET AND FLOOD THE WORLD WITH CHEAP AND NEARLY PROFITLESS MEMORIES CYPRESS SEMICONDUCTOR CORP WHICH POSTED ITS FIRST NET LOSS LAST YEAR SINCE GOING PUBLIC IN 1986 IS SUFFERING IN PART BECAUSE IT LARGELY LOST OUT IN BIDS TO SELL MICROPROCESSORS TO SUN MICRO THE HUGE PCMAKING INDUSTRY HAS CREATED A VAST INDUSTRY OF PARTS DISK DRIVES MONITORS ADDIN BOARDS AND HUNDREDS OF OTHER GADGETS THE WINNERS IN PC COMPONENTS ARE FASTPACED INNOVATORS AND COMPANIES WITH A TECHNOLOGICAL EDGE TO THEM TODAY'S CUTRATE PCS BAD FOR THEIR MAKERS' PROFITS LOOK A LOT LIKE LOSS LEADERS THE PROLIFERATION OF SMALL COMPUTERS IS BOOSTING THE FORTUNES OF DISKDRIVE MAKERS THAT HAVE FORGED CLOSE TIES WITH PC AND WORKSTATION MAKERS A SMALL GROUP OF DRIVE SUPPLIERS THAT EMERGED FROM A BLOODY INDUSTRY SHAKEOUT IN THE 1980S INCLUDING CONNER PERIPHERALS INC SEAGATE TECHNOLOGY INC AND QUANTUM CORP HAVE POSTED POWERFUL PERFORMANCES IN RECENT YEARS THROUGH A STREAM OF INNOVATIONS HP HAS WON BIG WITH ITS PRINTERS BECAUSE IT DECIDED IN 1984 DESPITE CONSIDERABLE INTERNAL OPPOSITION TO DESIGN ITS LASER PRINTERS TO WORK WITH NONHP COMPUTERS AND TO MAKE THEM EASY TO HOOK INTO NETWORKS OF DIVERSE MACHINES HP BY CONTINUING TO PUSH INNOVATIONS AND DRIVE DOWN PRICES HAS KEPT AN ESTIMATED 53 US MARKET SHARE IN LASER PRINTERS AMONG HUNDREDS OF OTHER LITTLE WINNERS CREATIVE TECHNOLOGY LTD SAW EARNINGS TRIPLE TO 223 MILLION IN ITS LATEST QUARTER AS SALES OF ITS PC SOUND AND VIDEO BOARDS SOARED THREEFOLD TO 856 MILLION SOME PROMINENT LOSERS ARE COMPANIES LIKE FUJITSU LTD THAT SPECIALIZE IN MASSIVE DISK DRIVES THAT STORE DATA FOR MAINFRAMECLASS MACHINES NOT ONLY HAVE THEY GAINED LITTLE OR NO GROUND IN THE SIZZLING PC MARKET THEY FACE THE LOSS OF AT LEAST PART OF THEIR MAINFRAME BUSINESS TO NEWCOMERS OFFERING SOCALLED DISK ARRAYS WHICH OFFER HUGE AMOUNTS OF STORAGE AT A FRACTION OF THE PRICE BY LINKING SMALL HARD DISKSMADE CHEAPLY BY THE PC INDUSTRY'S ECONOMIES OF SCALETOGETHER IN NETWORKS SOME OF THE MOST NOTABLE WINNERS IN THE SHIFT TO NETWORKED COMPUTING ARE LITTLEKNOWN MAKERS OF THE PIECES OF ELECTRONIC PLUMBING THAT PHYSICALLY TIE SMALL COMPUTERS INTO NETWORKSSYSTEMS THAT CAN EFFICIENTLY PIPE REAMS OF DATA AMONG HUNDREDS OF DISPARATE MACHINES CISCO A MAKER OF THE ROUTERS THAT PLAY TRAFFIC COP TO DATA FLOWING BETWEEN NETWORKS SAW SALES NEARLY DOUBLE TO 340 MILLION IN ITS LATEST FISCAL YEAR AND ITS STOCK MORE THAN DOUBLE LAST YEAR ITS MARKET CAPITALIZATION STANDS AT NEARLY 6 BILLION TODAY SYNOPTICS COMMUNICATIONS INC A MAKER OF HUBS WHICH SIT AT THE CENTER OF LOCALAREA NETWORKS HAS REPORTED RECORD EARNINGS STOCK IN 3COM CORP A SELLER OF VARIOUS DEVICES TO HOOK COMPUTERS TOGETHER NEARLY TRIPLED LAST YEAR A COMMON CHARACTERISTIC AMONG NETWORKINGHARDWARE WINNERS THEY WERE PIONEERS IN THEIR MARKET NICHES ESTABLISHING THEIR TECHNOLOGIES AS STANDARDS THE FIRST COMPANY TO IDENTIFY A MARKET KEEPS A DISPROPORTIONATE SHARE OF THE MARKET SAYS COWEN & CO ANALYST MARIA LEWIS IN THIS YOUNG INDUSTRY THE LOSERS ARE IN EFFECT OLDTIMERS WHOSE ONESTOP SHOPPING APPROACH THESE COMPANIES HAVE HELPED UNDERMINE THERE ARE SO MANY MORE DESKTOPS THAT NEED TO BE NETWORKED SAYS 3COM CEO ERIC BENHAMOU THAT THIS BUSINESS GROWS REGARDLESS OF UPS AND DOWNS IN THE ECONOMY THIS IS A BASTION OF WINNERS LED BY NOVELL SUPPLIERS OF DATABASE SOFTWARE HAVE SHREWDLY MIMICKED NOVELL'S APPROACH OF SELLING SOFTWARE FOR ALL TYPES OF MACHINES FOUND ON NETWORKS ORACLE INFORMIX SOFTWARE INC AND SYBASE INC HAVE SEEN INCREASING DEMAND FOR THEIR SOFTWARE WHICH GIVES PC USERS ACCESS TO DATA STORED IN LARGER COMPUTERS SOFTWARE FROM THESE SAME COMPANIES HOLDS THE KEY TO MANAGING VAST DATABASES WITH PCS AND WORKSTATIONS ALONE THE EXPLANATION FOR THE SIZZLING SALES OF NETWORK SOFTWARE IS CLEAR SAYS LEE REISWIG PRESIDENT OF IBM'S PERSONAL SOFTWARE PRODUCTS DIVISION PEOPLE WANT TO USE THEIR DISTRIBUTED PCS THE WAY THEY WERE USING MINIS AND MAINFRAMES WHAT'S KEEPING NETWORKS OF PCS AND WORKSTATIONS FROM SUPPLANTING ALL MAINFRAMES SOFTWARE SAYS IBM'S MR REISWIG THE NECESSARY SERVICES DON'T EXIST TODAY TO MOVE THE BILLIONS OF DOLLARS WORTH OF MAINFRAME AND MINICOMPUTER SOFTWARE AND DATA DOWN TO NETWORKS MANY COMPANIES STILL NEED BIG IRON TO HANDLE SOME OF THEIR MOST INTENSIVE COMPUTING CHORES IN ONE IRONIC EXAMPLE 3COM WHILE PROFITING GREATLY FROM NETWORKING RECENTLY BOUGHT A NEW MAINFRAME BECAUSE SAYS MR BENHAMOU YOU STILL NEED A HUGE CENTRAL REPOSITORY OF DATA BUT THE GAPS ARE RAPIDLY CLOSING IBM'S MR REISWIG SAYS BY EARLY NEXT CENTURY HE PREDICTS NETWORKS WILL COMPLETELY REPLACE MAINFRAMES AS THE PREDOMINANT PLATFORM THAT DOESN'T MEAN TODAY'S PACESETTERS WILL BE TOMORROW'S DIFFERENCES BETWEEN SOFTWARE SUPPLIERS SOME STEMMING FROM THE PERSONALITIES OF THEIR LEADERS MAY HINDER CONSOLIDATION IN THAT INDUSTRY BUT MANY FEEL THE SOFTWARE INDUSTRY IS ON THE VERGE OF A WAVE OF MERGERS AS BELEAGUERED INDEPENDENTS GROW WEARY OF COMPETING WITH MICROSOFT WHICH DWARFS ITS BIGGEST RIVALS WE'VE TRIED TO CREATE SOMETHING LIKE A USA OF SOFTWARE WITHOUT ACTUALLY MERGING SAYS MR NOORDA OF NOVELL WHICH HAS FORMED A VARIETY OF SALES SERVICE AND DEVELOPMENT PACTS WITH LOTUS BORLAND WORDPERFECT AND OTHERS THE NEW WORLD OF NETWORKED COMPUTING MAY ALSO THREATEN MICROSOFT AND INTEL NEITHER COMPANY HAS A STRONG POSITION IN THE SOFTWARE AND CHIPS THAT ARE DRIVING THE MERGER BETWEEN PORTABLE COMPUTING AND COMMUNICATIONS TANDY CORP A STALWART MICROSOFT CUSTOMER IS RELYING ON UPSTART GEOWORKS FOR THE BASIC SOFTWARE FOR ITS NEW PERSONAL COMMUNICATOR OR PALMTOP COMPUTER THAT CAN SEND AND RECEIVE DATA OVER THE AIRWAVES AT&T WHICH HAS A SIMILAR DEVICE IN THE WORKS ALSO ISN'T RELYING ON MICROSOFT OR INTEL AND AN OPERATING SYSTEM FROM GENERAL MAGIC INC TO BE UNVEILED ON FEB 8 ALREADY HAS ATTRACTED A LONG LIST OF BACKERS INCLUDING APPLE MOTOROLA AND SONY CORP WHICH PLAN TO USE IT IN THEIR PERSONAL COMMUNICATORS FURTHER UPHEAVALS COULD COME FROM A BLURRING OF LINES BETWEEN COMPUTERS AND PERIPHERALS HARDWARE AND SOFTWARE AND OPERATING SYSTEMS AND APPLICATIONS ALTHOUGH PREDICTIONS TO THAT EFFECT ARE POOHPOOHED IN SOME CORNERS OF THE INDUSTRY SO ONCE WAS TALK THAT THE GIANTS COULD STUMBLE