LILLEHAMMER NORWAY ONE DAY SEVERAL YEARS AGO DEEP IN RECESSION THE PEOPLE OF THE GUDBRANDSDALEN VALLEY UNCORKED A BOTTLE OF THEIR POTATOANDCARAWAY LIBATION CALLED AQUAVIT AND TOOK A HARD LOOK AT THEMSELVES IT WASN'T A PRETTY SIGHT WHAT DID THEY SEE THEY SAW LONELY TROLLS THEIR MYTHOLOGICAL MASCOTS WHICH EVEN THE MOST CHARITABLE NORWEGIANS WOULD DESCRIBE AS UGLY EVIL AND A LITTLE BIT STUPID THE VALLEY'S RESIDENTS HAD SCULPTED A HUGE CONCRETE TROLL WITH A HUGE WART ON ITS HEAD THE LARGEST TROLL AND WART IN THE WORLD TO ATTRACT TOURISTS TO THE AREA THE BIG TROLL ALAS WASN'T WORKING THEY SAW AN OMINOUS OIL SHADOW EXTENDING FROM THE NORTH SEA THE OFFSHORE OIL BOOM WAS ENRICHING COASTAL COUNTIES AND SUCKING THE LIFE OUT OF THE NORWEGIAN INTERIOR YOUNG WOMEN WERE FLEEING THE VALLEY IN DROVES THE LONG WINTER NIGHTS WERE NOT ONLY COLD THEY WERE BORING THEY SAW A RIGID INSULAR CITIZENRY APPROACHING THE 21ST CENTURY WITH ALL THE ZEST OF A POACHED SALMON ONE OF THE VALLEY'S PROMINENT BUSINESSMEN STOOD UP AT A TOWN MEETING AND CALLED HIS NEIGHBORS NOSY CHEAP AND ENVIOUS EVEN THE BUMMEDOUT BREWERY TURNED OFF ITS TAP AND LEFT TOWN WHAT TO DO GET THE WINTER OLYMPICS SOMEONE SUGGESTED AFTER ALL LILLEHAMMER IS THE ONLY CITY IN THE WORLD WITH A SKIER IN ITS COAT OF ARMS THE OLYMPICS WOULD ATTRACT LOTS OF TOURISTS GIVE THE LOCALS SOMETHING TO LOOK FORWARD TO AND SAVE THE REGION FROM ARCTIC OBLIVION SO GET THE WINTER OLYMPICS THEY DID AND THE GUDBRANDSDALEN VALLEY HOST TO THE GAMES AND THE WORLD BEGINNING FEB 12 HASN'T BEEN THE SAME SINCE IT'S BEEN A CULTURAL REVOLUTION SAYS TORILL BROCH SEEBERG DIRECTOR OF PUBLIC RELATIONS FOR THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE OR LOOC A COMICALLOOKING GIZMO A RED PLASTIC HOOK CONNECTED BY A STRETCH OF ELASTIC TO A BLUE HOOK DANGLES FROM HER COLLAR MS SEEBERG WRAPS THE STRING BEHIND HER HEAD AND PLACES THE HOOKS IN THE CORNERS OF HER MOUTH PULLING HER LIPS INTO A GRIN THE LOOK LOOC WANTS THE WORLD TO SEE IT'S TO TEACH US TO SMILE SHE SAYS ONE DAY THE OLYMPICS WILL FACE A TRULY COLOSSAL IMAGEMAKEOVER CHALLENGE LIKE SAY CHINA BUT FOR THE MOMENT NORWAY AND THE NORWEGIANS PARTICULARLY THE DOUR DENIZENS OF THE SLEEPY GUDBRANDSDALEN VALLEY ARE CHALLENGE ENOUGH THE OLYMPICS ARE A CONTRADICTION FOR THIS REGION SAYS HANS HAGENE OLYMPIC COORDINATOR FOR THE TOWN OF GJOVIK WHICH WILL HOST SOME OF THE HOCKEY GAMES WE'RE NOT USED TO WELCOMING FOREIGNERS AND NOW THE WORLD IS COMING THE OLYMPICS ARE SUCH A JOLT EACH DAY MORE THAN 100000 TOURISTS FROM AROUND THE WORLD WILL FLOCK TO A REGION WITH A TOTAL POPULATION OF 250000 THAT THE EASTERN NORWAY RESEARCH INSTITUTE BASED HERE HAS ASSIGNED AN ANTHROPOLOGIST TO STUDY THE REACTION OF THE LOCALS NOTHING EVER HAPPENS HERE SAYS LOCAL POET OYVIND BERG HE RECALLS MOVING TO LILLEHAMMER SEVERAL YEARS AGO FROM THE MORE COSMOPOLITAN TOWN OF BERGEN AND HEADING OUT TO THE GREEN MARKET THE VENDORS HE SAYS TRIED TO TALK HIM OUT OF BUYING THEIR FRUIT THEY DIDN'T EVEN WANT TO SELL THE APPLES ARE YOU SURE' THEY WOULD ASK THESE APPLES WELL OK' THE POET SAYS THE PEOPLE HERE ARE SAID TO BE THE SLOWEST IN NORWAY THAT SAYS A LOT PRIZE MISFIT IT DOES THIS IS A COUNTRY AFTER ALL THAT BESTOWS THE PEER GYNT PRIZE AS ONE OF ITS HIGHEST NATIONAL ACCOLADES EVEN THOUGH PEER GYNT A CHARACTER CREATED BY NORWEGIAN PLAYWRIGHT HENRIK IBSEN IS ONE OF THE GREAT MISFITS AND LIARS IN LITERARY ANNALS NORWAY IS ALSO THE INSPIRATION FOR HUMORIST GARRISON KEILLOR'S LAKE WOBEGON A DOZY SETTLEMENT WHERE PEOPLE PAY HOMAGE TO A STATUE OF THE UNKNOWN NORWEGIAN NORWAY NEEDS THE EXPOSURE LAMENTS LOOC CHAIRMAN GERHARD HEIBERG IN GRAND NORDIC UNDERSTATEMENT TO BE SURE NORWAY HAS BEEN ON A GEOPOLITICAL ROLL OF LATE SHAKING OFF THE ANONYMITY THAT COMES FROM BEING A COUNTRY OF ONLY FOUR MILLION PEOPLE ON THE NORTHERN RIM OF EUROPE WHERE THE WINTER SUN SETS ON THE CAPITAL CITY BY MIDAFTERNOON NORWAY HAS HOSTED THE BREAKTHROUGH PEACE TALKS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IT IS CAMPAIGNING FOR MEMBERSHIP IN THE EUROPEAN UNION FORMERLY KNOWN AS THE EUROPEAN COMMUNITY AND ITS SOCCER TEAM HAS MADE THE FINALS OF THIS SUMMER'S WORLD CUP THE MOSTWATCHED SPORTING EVENT IN THE WORLD STILL SAYS EINI DUEDAHL HOLMEN OF LOOC PEOPLE OVERSEAS THINK OF NORWAY AS A PLACE WHERE REINDEER RUN IN THE STREETS AND PEOPLE GO FISHING ALL THE TIME WHICH IS WHERE THE OLYMPICS COME IN THE GAMES TO BE PLAYED OUT OVER 16 DAYS IN THE GUDBRANDSDALEN VALLEY 100 MILES NORTH OF OSLO ARE SHOVING THE NORWEGIANS SQUARELY ONTO THE WORLD'S CENTER STAGE AND THERE THEY STAND AWED AND SQUINTING INTO THE BRIGHT LIGHTS LIKE TROLLS EMERGING FROM THEIR SUBTERRANEAN HIDEAWAYS BUT DETERMINED TO SQUEEZE THE GAMES FOR EVERYTHING THEY ARE WORTH THE NORWEGIANS WHO GAVE US THE WORDS SKI AND SLALOM HAVE ALWAYS USED THE WINTER GAMES TO DISPLAY THEIR SPORTING SKILLS DESPITE ITS TINY POPULATION NORWAY HAS WON MORE GOLD MEDALS THAN ANY OTHER NATION EXCEPT THE FORMER SOVIET UNION BUT THE LILLEHAMMER OLYMPICS ARE DESIGNED TO SHOW OFF NORWAY'S PROWESS IN OTHER DISCIPLINES PARTICULARLY MANUFACTURING TOURISM AND TECHNOLOGY THE ALPINE EVENTS WILL UNVEIL THE HAUNTINGLY BEAUTIFUL SCENERY ON THE RIM OF THE ARCTIC CIRCLE THE HOCKEY GAMES WILL SHOWCASE A MINDBOGGLING ARENA CARVED INTO A MOUNTAINSIDE WITH THE CUTTING EDGE OF CONSTRUCTION TECHNOLOGY THE SPEED SKATING RACES WILL SPOTLIGHT A WOODDOMED STADIUM THAT PUSHES THE ENVELOPE ON THE USE OF TIMBER IN TURN THE PARADE OF VISITORS FROM AROUND THE WORLD WILL SHOW THE LOCALS THAT WITH A LITTLE INITIATIVE AND A WELLTIMED SMILE THERE IS A HUGE MARKET RIPE FOR THE PICKING MS HOLMEN BEGINS THE HARVEST BY CHEERILY LEADING A TOUR AROUND LILLEHAMMER'S OLYMPIC BUSINESS CENTER WHERE FOR THE FIRST TIME EVER COMPANIES FROM THE NEIGHBORING AND BICKERING COUNTIES OF OPPLAND AND HEDMARK THE ONLY TWO NORWEGIAN COUNTIES WITHOUT A COASTLINE HAVE COME TOGETHER UNDER ONE ROOF TO PROMOTE THEIR WELFARE THERE IS A COMPANY THAT MAKES 12000 DIFFERENT KINDS OF FISH HOOKS AND AN AMBITIOUS SNOWPLOW MAKER WHOSE BLADES ARE WORKING AS FAR AWAY AS THE SOUTH POLE MS HOLMEN PAUSES IN FRONT OF A MINIATURE REPLICA OF ONE OF THE COUNTRY'S ARCHITECTURAL WONDERS AN OFFSHORE OIL PLATFORM WHICH TOWERS OVER SCALE REPLICAS OF THE EMPIRE STATE BUILDING THE EIFFEL TOWER AND AN EGYPTIAN PYRAMID SHE FLASHES A TRULY GENUINE SMILE IT WAS BUILT BY STATOIL OUR NATIONAL OIL COMPANY SHE SAYS PROUDLY IN LAKE WOBEGON STYLE THEY NAMED IT THE TROLL PLATFORM NOT EVERYONE AS COULD BE EXPECTED HAS JUMPED ON THE PROMOTIONAL BANDWAGON AS THE COSTS OF STAGING THE OLYMPICS SUPPORTED BY THE STATE TREASURY HAVE RISEN FROM JUST UNDER 200 MILLION TO JUST OVER 1 BILLION SOME NORWEGIANS HAVE WONDERED WHAT THEY HAVE GOTTEN THEMSELVES INTO I'M HAPPY LILLEHAMMER DIDN'T KNOW ALL THE OLYMPICS INVOLVE OR THEY WOULD NEVER HAVE APPLIED SAYS MR HEIBERG THE CHAIRMAN WHO COMES FROM OSLO TO SPEND ALL THAT MONEY IN THIS LITTLE DISTRICT FOR THAT SHORT OF TIME IS A WASTE OF MONEY SAYS MR BERG THE POET I'VE WRITTEN A POEM WHERE I'VE CANCELED THE OLYMPICS JUST CALLED THE WHOLE THING OFF SOMEONE HAD TO DO IT BUT MOSTLY THERE IS GREAT EXPECTATION THAT ALL THIS WILL LEAD TO FUTURE PROSPERITY FOR NORWAY IN GENERAL AND THE LILLEHAMMER REGION IN PARTICULAR EVEN MR BERG IS GETTING HIS SHARE GAINING AN ASSIGNMENT TO COVER THE GAMES FROM AN ODDBALL PERSPECTIVE FOR A NORWEGIAN PAPER THE OLYMPICS WILL BEQUEATH A STATEOFTHEART TELEVISIONBROADCAST CENTER THAT LILLEHAMMER WILL CONVERT INTO A DISTRICT COLLEGE WITH ROOM FOR 3000 STUDENTS SPECIALIZING IN FILM AND COMMUNICATIONS TECHNOLOGY THE ULTERIOR MOTIVE IS TO GIVE THE YOUNG PEOPLE OF THE VALLEY INCENTIVE TO STAY AT HOME TO STUDY AND WORK ESPECIALLY THE WOMEN IN ONE AREA OF OPPLAND COUNTY WHICH HAS THE LOWEST BIRTHRATE IN NORWAY THERE ARE CURRENTLY ONLY 70 WOMEN TO EVERY 100 MEN IN THE 20 TO 40 AGE RANGE THE OLYMPICS AS A MARKETING TOOL CAN'T BE BEAT MOELVEN LIMTRE AS COULD HAVE BUILT A CONVENTIONAL SPEEDSKATING ARENA IN THE TOWN OF HAMAR INSTEAD IT ERECTED A 12000SEAT STRUCTURE THAT LOOKS LIKE THE UPTURNED HULL OF A VIKING SHIP OR VIEWED WITH THE AID OF A SHOT OF AQUAVIT AN UPSIDE DOWN TACO SHELL EITHER WAY THE WONDROUS ROOF IS SUPPORTED BY THE LONGEST WOOD SPAN IN THE WORLD STRETCHING NEARLY 100 YARDS A TECHNOLOGICAL MILESTONE MADE POSSIBLE BY MOELVEN'S LAMINATEDGLUE PROCESS THAT MAKES THE WOOD STRONGER AND MORE FIRE RESISTANT THAN STEEL MOELVEN IS READY TO GO AROUND THE WORLD SAYS ODD OLAV SOLBAKKEN THE COMPANY'S EXPORT SALES DIRECTOR HE ENVISIONS CONSTRUCTING WOODEN INDOORSOCCER STADIUMS ACROSS THE NORTHERN TUNDRA THROUGHOUT THE EQUATORIAL RAIN FORESTS AND IN THE DESERTS OF THE MIDDLE EAST WHERE NORWAY ALREADY HAS A FOOT IN THE DOOR WITH THE PEACE TALKS WITH THE OLYMPICS AND THE MIDDLE EAST TALKS EYES ARE ON NORWAY WE'D BE VERY STUPID IF WE WOULDN'T CAPITALIZE ON THIS ON THE OTHER SIDE OF LAKE MJOSA THE TOWN OF GJOVIK IS ALREADY TAKING THE NOTORIETY OF ITS CAVERN HALL HOCKEY ARENA TO THE BANK RATHER THAN BUILD A NORMAL RINK THE TOWN DECIDED TO PUT ONE WITH SOME 6000 SEATS IN THE SIDE OF A MOUNTAIN NOW IT HAS THE LARGEST UNDERGROUND SPACE FOR PUBLIC USE IN THE WORLD SO FAR MORE THAN TWO DOZEN DELEGATIONS FROM JAPAN AND KOREA COUNTRIES RUNNING OUT OF FLAT LAND FOR HOUSING AND COMMERCIAL DEVELOPMENTS HAVE COME TO GJOVIK TO PORE OVER FOR A PRICE THE HIGHTECH RESEARCH STUDIES THESE TECHNOLOGICAL ACHIEVEMENTS HAVE GIVEN NORWEGIAN MANUFACTURING A SELLING POINT ABROAD TRUMPETED BY EVERYONE FROM KING HARALD TO SNOWPLOW KING OVERAASEN AS WE KNOW IT IS GETTING NORWAY A LOT OF ATTENTION SAYS THOR OVERAASEN IN HIS CASE ALL THE WAY TO CHINA WHICH HAS JUST ORDERED A BATCH OF PLOWS THE OLYMPICS ARE ALSO THE WORLD'S BEST WEAPON FOR CONQUERING THE TOURISM MARKET WHICH HAS GEORG KAMFORD DROOLING IN ANTICIPATION A VISITING PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS WHEN LILLEHAMMER WAS AWARDED THE OLYMPICS MR KAMFORD RETURNED HOME WITH DISNEYESQUE PLANS TO TURN THE REGION INTO A TOURIST MECCA HE IS TALKING AMUSEMENT PARKS NATUREBASED THEME PARKS ECOTOURISM AND THERE IS STILL THE BIG TROLL IN FACT THE WHOLE OLYMPIC REGION IS BEING PACKAGED UNDER THE NAME TROLL PARK THIS ATTITUDE IF IT STICKS MAY BE THE MOST VALUABLE LEGACY OF THE OLYMPICS WE'RE VERY OLD FASHIONED WE'RE TAUGHT TO STAND BEHIND AND NOT SAY THINGS OUT FRONT WE'RE LEARNING A NEW CULTURE SAYS ANNIKI EJINDAR A TOUR GUIDE IN HAMAR'S VIKING SHIP HALL SHE IS CATCHING ON FAST WE'RE PROUD OF OUR HALL IT HAS PLACED HAMAR ON THE MAP OF THE WHOLE WORLD IN LILLEHAMMER WHERE THE BIGGEST RISK MOST PEOPLE TAKE IS STRAPPING ON SKIS THE RESIDENTS ARE GETTING POSITIVELY ADVENTUROUS OWNERS OF FURNITURE STORES AND JEANS SHOPS ARE CONVERTING THEIR ESTABLISHMENTS INTO BARS AND RESTAURANTS TO CAPITALIZE ON THE WAVE OF FREESPENDING VISITORS EVEN IF THEY FAIL THEY LEARN SOMETHING SAYS OLAV SPILLING RESEARCH DIRECTOR AT THE EASTERN NORWAY RESEARCH INSTITUTE THE OLYMPICS IS A PROCESS OF LEARNING COMPETENCE PEOPLE SEE NEW WAYS OF THINKING NEW ROLE MODELS NEW OPPORTUNITIES THERE MUST BE SOMETHING LASTING FROM THIS LIKE LILLEHAMMER'S PLACE IN THE 21ST CENTURY NORWAY ISN'T WHAT IT WAS 20 YEARS AGO WE CAN SIT UP IN THE MOUNTAINS AND WATCH CNN AND SEE WHAT HAPPENS IN ROMANIA AS IT HAPPENS SAYS RANDI DEY OLYMPIC HOSPITALITY COORDINATOR FOR OPPLAND COUNTY WE HAVE TO MAKE THE PEOPLE HERE AWARE THAT THEY ARE ALL HOSTS WHICH IS WHAT THE SMILESHAPING GIZMO WAS ALL ABOUT A LIGHTHEARTED MOTIVATIONAL MESSAGE TO REMIND THE LOCALS TO BE FRIENDLY TO THE VISITORS SO THAT ONE DAY THEY WILL COME BACK AND SPEND MORE MONEY BUT THE OLYMPICS CAN'T CHANGE EVERYTHING OVERNIGHT WHEN WORD LEAKED THAT LOOC PLANNED TO DISTRIBUTE 100000 OF THE GIZMOS THE GOOD BUT CONSERVATIVE FOLKS OF THE VALLEY REACTED WITH A DECIDED FROWN THE PROJECT WAS PUT ON ICE PEOPLE HERE ACTUALLY THOUGHT THEY WOULD HAVE TO USE THEM MAYBE WEAR THEM TO BED AT NIGHT AND THEY COMPLAINED THAT WE WERE SPENDING TAX MONEY FOR SUCH THINGS SAYS MS DEY THEY DIDN'T GET THE JOKE SEE RELATED LETTERS LETTERS TO THE EDITOR IN LILLEHAMMER A SMILE COULD BE AN INSULT WSJ FEB 18 1994 9401170119 YY94 MM02 9402180090 940117 TECHNOLOGY & ENVIRONMENT ALASKA PULP MAY LOSE 50YEAR CONTRACT FOR FOREST SERVICE'S TONGASS TIMBER BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE US FOREST SERVICE TAKING AIM AT A LONGSTANDING POLICY THAT HEAVILY SUBSIDIZES CLEARCUTTING IN ALASKA'S ANCIENT FORESTS SAID IT INTENDS TO CANCEL A CONTRACT THAT PROVIDES HUGE AMOUNTS OF CHEAP TIMBER TO ALASKA PULP CO THE CONTRACT IS ONE OF TWO UNUSUAL 50YEAR PACTS THAT ENVIRONMENTALISTS AND MANY US FOREST MANAGERS SAY HAVE PROMOTED SEVERE OVERCUTTING IN THE TONGASS NATIONAL FOREST A 17 MILLIONACRE SEA OF GIANT SITKA SPRUCE AND OTHER OLD TREES THAT PROVIDE HABITAT FOR BEAR EAGLES SALMON AND MANY OTHER SPECIES IN SOUTHEAST ALASKA THE OTHER CONTRACT ALSO DATING FROM THE 1950S IS HELD BY KETCHIKAN PULP CO A UNIT OF LOUISIANAPACIFIC CO BECAUSE OF THE CONTRACTS' HEAVY SUBSIDIES WHICH UNTIL 1990 MADE A GIANT 500YEAROLD TREE ABOUT THE SAME PRICE AS A SIXPACK OF BEER THE TONGASS IS PERENIALLY ONE OF THE BIGGEST MONEYLOSERS IN THE DEFICITWRACKED FEDERAL FOREST SYSTEM ON FRIDAY THE FOREST SERVICE SAID ALASKA PULP WHICH IS OWNED BY JAPANESE INVESTORS BREACHED ITS CONTRACT BY CLOSING A PULP MILL AT SITKA IN SEPTEMBER THE SERVICE SAID THE CONTRACT WHICH ORIGINALLY WAS INTENDED TO SPUR DEVELOPMENT OF A TIMBER INDUSTRY IN ALASKA AND PROVIDE PERMANENT JOBS REQUIRED ALASKA PULP TO KEEP THE MILL OPEN HOWEVER BECAUSE OF A GLOBAL GLUT IN DISSOLVABLE PULP USED TO MAKE DISPOSABLE DIAPERS AND TOOTHBRUSH BRISTLES AMONG OTHER THINGS ALASKA PULP WAS LOSING MONEY ON THE OPERATION DESPITE THE SUBSIDIES IT HAS SHIFTED MUCH OF THE TIMBER TO A SAWMILL WHERE IT PRODUCES LUMBER FOR WHICH PRICES ARE NEAR RECORD HIGHS ALASKA PULP HAS 30 DAYS FROM THURSDAY TO COME UP WITH A PROPOSAL FOR RESOLVING ITS BREACH OF THE CONTRACT THE COMPANY SAID IT DOESN'T BELIEVE THE CONTRACT HAS BEEN BREACHED AND SAID IT HAS PROVIDED INFORMATION TO THE FOREST SERVICE THAT WILL RESOLVE DIFFERENCES ON THE MATTER BUT ENVIRONMENTAL ATTORNEYS DOUBT ALASKA PULP CAN DO THAT AND THEY HAILED THE FOREST SERVICE MOVE IT'S A GREAT DAY FOR THE TONGASS AND THE BEGINNING OF THE END FOR A LUNATIC POLICY SAID TOM CASSIDY AN OFFICIAL WITH AMERICAN RIVERS AN ENVIRONMENTAL GROUP WE NEED TO RETURN LOGGING IN THE TONGASS TO SUSTAINABLE LEVELS THE FOREST SERVICE'S MOVE MARKS A CHANGE OF COURSE FOR THE AGENCY WHICH HAD LONG RESISTED CALLS TO REVIEW THE TONGASS CONTRACTS ENVIRONMENTALISTS CREDITED THE CLINTON ADMINISTRATION AND IN PARTICULAR JACK WARD THOMAS A VETERAN WILDLIFE BIOLOGIST AND SPOTTEDOWL EXPERT WHO RECENTLY WAS NAMED TO HEAD THE AGENCY MR THOMAS PRESENTLY IS REVIEWING A BIG SALE OF TONGASS TIMBER TO KETCHIKAN PULP ON REMOTE CROWN PRINCE WILLIAM ISLAND AFTER A FOREST SERVICE SCIENTIST INVOLVED IN THE SALE FILED A WHISTLEBLOWER COMPLAINT ALLEGING THAT THE SALE IGNORES SCIENTIFIC EVIDENCE THAT IT WILL SEVERELY DAMAGE WILDLIFE SEE RELATED LETTER LETTERS TO THE EDITOR CONSERVATION VS ENVIRONMENTALISM WSJ FEB 18 1994 9401170075 YY94 MM02 9402170161 940217 CORRECTIONS & AMPLIFICATIONS QUALCOMM INC'S VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER ANDREW VITERBI ESTIMATED THAT QUALCOMM'S CDMA TECHNOLOGY OFFERS A SEVENFOLD IMPROVEMENT IN WIRELESS TRANSMISSION CAPACITY OVER A RIVAL DIGITAL CELLULAR TECHNOLOGY CALLED TDMA NOT OVER EXISTING CELLULAR SYSTEMS AS REPORTED IN FRIDAY'S SPECIAL REPORT ON TELECOMMUNICATIONS 9402170160 940217 TECHNOLOGY CALGENE'S PLANS TO SELL GENETICALLY ALTERED COTTON CROP ADVANCE DAVIS CALIF CALGENE INC SAID IT RECEIVED APPROVAL FROM THE US DEPARTMENT OF AGRICULTURE TO SELL A STRAIN OF COTTON THAT HAS BEEN GENETICALLY ENGINEERED TO RESIST DAMAGE FROM BROMOXYNIL A WEEDKILLER OPPOSED BY ENVIRONMENTAL GROUPS IT IS THE FIRST APPROVAL OF A MAJOR FIELD CROP UNDER A 1993 USDA RULE REGULATING GENETICALLY ENGINEERED PRODUCTS THOUGH THE AGENCY PREVIOUSLY APPROVED A CALGENE TOMATO PRODUCED USING SIMILAR TECHNIQUES THE ACREAGE USED FOR TOMATOES IS RELATIVELY SMALL THE COMPANY IS AWAITING FOOD AND DRUG ADMINISTRATION APPROVAL OF A GENE USED IN BOTH CROPS BEFORE BEGINNING HIGHVOLUME SHIPMENTS OF ITS COTTON SAID JOHN CALLAHAN CALGENE'S SENIOR VICE PRESIDENT IN CHARGE OF COTTON ONCE THAT FINAL HURDLE IS CLEARED CALGENE BXN COTTON THAT HAS BEEN FIELDTESTED CAN BE GROWN AND SHIPPED ANYWHERE IN THE US WITHOUT SPECIAL APPROVALS JUST LIKE CONVENTIONAL COTTON THE COMPANY SAID THE USDA DECISION IS A MILESTONE IN A 10YEAR PARTNERSHIP OF CALGENE AND RHONEPOULENC AG THE FRENCH COMPANY THAT SELLS BROMOXYNIL UNDER THE TRADE NAME BUCTRIL CALGENE CONTENDS THAT THE BXN COTTON ALLOWS FARMERS TO USE RELATIVELY SMALL AMOUNTS OF BUCTRIL WHICH IS A MORE EFFICIENT WEED KILLER THAN OTHER HERBICIDES USED NOW CALGENE ESTIMATES THAT ITS COTTON IF USED BY ALL US COTTON GROWERS COULD REDUCE THEIR HERBICIDE USE BY NINE MILLION POUNDS ANNUALLY BUT ENVIRONMENTAL GROUPS ARGUE THAT BUCTRIL CAN CAUSE BIRTH DEFECTS IN FARM WORKERS EXPOSED TO THE HERBICIDE AND ARE PUSHING INSTEAD FOR FARMERS TO USE ORGANIC METHODS THAT USE NO CHEMICALS MANY PEOPLE ARE FINDING THAT THEIR YIELDS ARE BETTER WITH ORGANIC COTTON SAID REBECCA GOLDBERG A SENIOR SCIENTIST AT THE ENVIRONMENTAL DEFENSE FUND IN WASHINGTON DR GOLDBERG SAID THE ENVIRONMENTAL PROTECTION AGENCY MUST APPROVE THE USE OF BUCTRIL ON COTTON WE ARE TAKING OUR CASE TO EPA SHE SAID YESTERDAY CALGENE STOCK JUMPED 75 CENTS OR 64 TO CLOSE AT 1250 A SHARE IN NASDAQ STOCK MARKET TRADING 9402170159 940217 BEARISH BETS TURN SOME INTO BULLS OPTIONS SPECULATORS SEE RISING MARKET LIFTED BY PUTS' TIDE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OPTIONS SPECULATORS ARE SENDING A POTENTIALLY BULLISH MESSAGE TO STOCK INVESTORS BUT INVESTORS ARE TOO BUSY BEING BEARISH TO LISTEN EVER SINCE THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES TO 325 FROM 3 EARLIER THIS MONTH THE SPECULATORS HAVE BEEN LOADING UP ON PUT OPTIONS THESE OPTIONS CONFER ON THE OWNER THE RIGHT TO SELL STOCKS AT SPECIFIED PRICES BY BUYING PUT OPTIONS THE SPECULATORS ARE MAKING A BEARISH BET ON THE MARKET BUT IN THE SOMETIMES PARADOXICAL REALM OF STOCK MARKET ANALYSIS A BIG BEARISH BET CAN BE A BULLISH OMEN IN RECENT WEEKS THE BUYING OF PUTS HAS BEEN SO FRENZIED THAT ON CERTAIN DAYS VOLUME IN PUT OPTIONS HAS EXCEEDED VOLUME IN CALL OPTIONS AN UNUSUAL EVENT ACCORDING TO MANY TECHNICAL ANALYSTS IN CONTRAST TO PUTS A CALL OPTION CONFERS THE RIGHT TO BUY STOCKS FOR SPECIFIED PRICES WHAT IT MEANS IS THAT PEOPLE ARE TURNING INCREASINGLY BEARISH AND THEY ARE PUTTING THEIR MONEY WHERE THEIR MOUTH IS SAYS RICHARD EAKLE PRESIDENT OF AN INVESTMENT ADVISORY FIRM THAT BEARS HIS NAME THE RISING PUTCALL RATIO IS AN EXCELLENT CONTRARY INDICATOR SAYS MR EAKLE WHO THINKS THE DOW JONES INDUSTRIAL AVERAGE COULD RALLY TO 4300 TO 4500 IN THE SECOND HALF AS LONG AS INVESTORS ARE BEARISH THAT MEANS THEY STILL HAVE PLENTY OF CASH THAT COULD BE PUT TO WORK TO MOVE THE MARKET HIGHER AND THE LONGER THEY'RE BEARISH THE BETTER MR EAKLE SAYS HE IS PARTICULARLY ENCOURAGED TO FIND THAT THE PUTOPTION PURCHASES HAVE BEEN RUNNING STRONG EVEN AS THE MARKET HAS BEEN GAINING GROUND IN RECENT DAYS THE LONGER SENTIMENT IS NEGATIVE THE MORE IT GETS ENGRAINED IN PEOPLE'S MINDS AND THE MORE OF A RESPONSE YOU GET IN THE OPPOSITE DIRECTION SAYS MR EAKLE LOOKING BACK OVER THE PAST DECADE HE NOTES THAT EACH TIME THE VOLUME OF PUT OPTIONS HAS SURPASSED THE VOLUME OF CALL OPTIONS FOR TWO CONSECUTIVE DAYS THE STANDARD & POOR'S 500 STOCK INDEX HAS RALLIED IN THE FOLLOWING 12 MONTHS GAINING AS MUCH AS 27 AND AS LITTLE AS 1 INDEED ONE OF THE REASONS MR EAKLE IS SO BULLISH TODAY IS THAT ON FEB 4 AND ON FEB 7 WHICH WERE CONSECUTIVE TRADING DAYS THE VOLUME OF PUT OPTIONS AT THE CHICAGO BOARD OPTIONS EXCHANGE SURPASSED THE NUMBER OF CALLS SUCH AN EVENT HAS ONLY OCCURRED 10 OTHER TIMES IN THE PAST DECADE MORE RECENTLY THE CBOE PUT/CALL VOLUME RATIO HAS BEEN RUNNING CLOSE TO 1TO1 SUGGESTING THAT THE PESSIMISTIC SENTIMENT IS STILL RUNNING STRONG THE PUTCALL RATIO HAS BEEN INCREDIBLY BULLISH SAYS TIMOTHY WEST A TECHNICAL ANALYST AT SG WARBURG I JUST DON'T UNDERSTAND WHY THE MARKET HASN'T EXPLODED ON IT MR WEST SUGGESTS THAT ONE OF THE REASONS PUT OPTION BUYING IS SUCH A BULLISH SIGNAL FOR THE MARKET IS THAT WHEN SPECULATORS ARE LOADING UP ON PUTS THEY ARE INDIRECTLY ADDING TO THE SELLING PRESSURE IN THE STOCK MARKET THE MARKET MORE QUICKLY BECOMES OVERSOLD AND BOUNCES BACK THIS REACTION ATTRACTS BOTH INVESTORS WHO WANT TO BUY STOCK AND INVESTORS WHO HAVE TO BUY TO OFFSET THEIR BETS THAT STOCK PRICES WOULD DECLINE THIS COMBINATION OF BUYERS OFTEN PROPELS THE MARKET SHARPLY HIGHER AND CREATES MOMENTUM FOR ADDITIONAL GAINS FOR SOME ANALYSTS THE PUTCALL VOLUME RATIO IN ITSELF ISN'T A SUFFICIENTLY COMPELLING INDICATOR OF INVESTOR SENTIMENT THOMAS MCMANUS A STOCK ANALYST AT MORGAN STANLEY FOR INSTANCE ALSO LOOKS AT THE CBOE'S VOLATILITY INDEX WHICH IS AN INDICATOR OF HOW EXPENSIVE OPTIONS ARE EVER SINCE THE FED RAISED INTEREST RATES EARLIER THIS MONTH THE VOLATILITY INDEX HAS SHOT UP TAKEN TOGETHER WITH THE RISE IN PUT VOLUME IT SUGGESTS THAT DEMAND FOR PUTS IS SO GREAT NOW THAT IT IS BOOSTING OPTIONS PRICES IN CONTRAST WITH 1987 WHEN INVESTORS WERE WILDLY BULLISH MR MCMANUS SAYS THAT THE RECENT PICKUP IN PUT BUYING SUGGESTS THAT INVESTORS TODAY ARE STILL DIFFIDENT ABOUT THE STOCK MARKET IT IS QUITE POSSIBLE THAT WE COULD BE IN THE MIDDLE OF OR ENTERING AN EXPLOSIVE RALLY IN THE MARKET SAYS MR MCMANUS 9402170158 940217 FIRED OFFICER WHO ACCUSED GE OF A PLOT TO FIX DIAMOND PRICES DROPS LAWSUIT BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EDWARD RUSSELL WHO MADE SPECTACULAR ALLEGATIONS THAT GENERAL ELECTRIC CO WAS CONSPIRING TO FIX PRICES WORLDWIDE FOR INDUSTRIAL DIAMONDS DROPPED HIS LAWSUIT AGAINST GE AND RETRACTED ALL OF HIS ALLEGATIONS AGAINST THE COMPANY THE SURPRISE MOVE CAME JUST DAYS BEFORE THE SUIT WAS TO GO TO TRIAL IN FEDERAL DISTRICT COURT IN CINCINNATI MR RUSSELL'S CASE FILED TWO YEARS AGO ALLEGED HE HAD BEEN FIRED IN 1991 AS VICE PRESIDENT OF GE'S SUPERABRASIVES DIVISION BECAUSE HE HAD BLOWN THE WHISTLE ON PRICEFIXING ACTIVITIES HE HAD ALLEGED THAT GE WAS FIXING PRICES IN THE WORLDWIDE MARKET WITH DEBEERS CONSOLIDATED MINES CO THE OTHER MAJOR PRODUCER OF INDUSTRIAL DIAMONDS GE AND DEBEERS HAVE DENIED ANY COLLUSION IN A SWORN STATEMENT FILED LATE YESTERDAY IN A CINCINNATI COURT MR RUSSELL 56 YEARS OLD RETRACTED ALL OF HIS ALLEGATIONS THE FORMER GE EXECUTIVE STATED THAT DURING MY ENTIRE EMPLOYMENT AT GE I NEVER HAD ANY PERSONAL KNOWLEDGE OF ANY ANTITRUST WRONGDOING HE ADDED I NEVER HAD ANY PERSONAL KNOWLEDGE OF ANY OTHER ILLEGAL CONDUCT BY GE PERSONNEL MR RUSSELL ALSO STATED THAT HE HAD CONCLUDED THAT GE REMOVED ME BASED ON ITS VIEW OF MY PERFORMANCE AND NOT BECAUSE I WAS A WHISTLEBLOWER THE RUSSELL ALLEGATIONS HAD TOUCHED OFF A FUROR THE FEDERAL BUREAU OF INVESTIGATION BEGAN AN INQUIRY AT ONE POINT PLACING A RECORDING DEVICE ON MR RUSSELL'S HOME TELEPHONE WHILE HE TALKED TO OTHER GE EXECUTIVES THE JUSTICE DEPARTMENT WHICH IS NEARING THE END OF ITS INVESTIGATION IS STILL STUDYING WHETHER TO FILE ANY CHARGES AGAINST GE EFFORTS TO OBTAIN COMMENT LAST NIGHT WERE UNAVAILING MR RUSSELL'S DISPUTE WITH GE WAS THE SUBJECT OF A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL LAST NOVEMBER MR RUSSELL ALSO HAD IMPLICATED GLEN HINER THEN A SENIOR VICE PRESIDENT OF GE'S PLASTICS GROUP WHICH INCLUDED MR RUSSELL'S SUPERABRASIVE'S UNIT MR HINER THE RUSSELL LAWSUIT ALLEGED HAD TRAVELED TO LONDON TO ARRANGE THE ALLEGED PRICEFIXING SCHEME WITH TOP DEBEERS OFFICIALS MR HINER NOW CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OWENSCORNING FIBERGLAS CORP TOLEDO OHIO HAD STRENUOUSLY DENIED THE ALLEGATIONS SAYING HE HAD TALKED TO DEBEERS ONLY ABOUT A POSSIBLE TECHNOLOGYLICENSING AGREEMENT IN HIS SWORN STATEMENT MR RUSSELL SAID THAT I DON'T BELIEVE I WAS A POOR PERFORMER AT GE BUT HE ADDED THAT HAVING REVIEWED ALL THE EVIDENCE GATHERED FOR HIS TRIAL INCLUDING THE DEPOSITION OF GE CHAIRMAN JACK WELCH I AM NOW AWARE THAT GE REMOVED ME BASED ON ITS VIEW OF MY PERFORMANCE MR WELCH HAD STATED IN A DEPOSITION THAT HE HAD FIRED MR RUSSELL BECAUSE THE EXECUTIVE HADN'T KEPT ON TOP OF PROBLEMS IN THE INDUSTRIAL DIAMOND UNIT GE SAID IN A STATEMENT THAT IN RECOGNITION OF MR RUSSELL'S 18 YEARS' SERVICE AND HIS INABILITY TO OBTAIN A JOB SINCE THE FIRING GE WOULD PROVIDE MEDICAL AND INSURANCE BENEFITS TO MR RUSSELL AND HIS DEPENDENTS ON THE SAME BASIS AS ANY OTHER RETIRED GE OFFICER GE ALSO SAID THAT IT WOULD PAY DIRECTLY TO MR RUSSELL'S LAWYER A PORTION OF HIS LEGAL FEES AT ONE POINT IN THE PROCEEDINGS MR RUSSELL'S LAWYER JAMES HELMER TOLD THE COURT THAT THE LEGAL FEES HAD EXCEEDED 1 MILLION A GE SPOKESWOMAN DECLINED TO DISCLOSED THE AMOUNT PAID TO MR HELMER ASKED WHETHER GE HAD AGREED TO PAY ANYTHING ELSE TO EITHER MR RUSSELL OR MR HELMER SHE SAID NO MESSRS RUSSELL AND HELMER COULDN'T BE REACHED FOR COMMENT MR HELMER ALSO FILED A STATEMENT WITH THE COURT YESTERDAY HE SAID I HAVE CAREFULLY REVIEWED ALL THE EVIDENCE OBTAINED IN THIS SUIT AND IT DOES NOT SHOW THAT GE PERSONNEL HAVE VIOLATED THE ANTITRUST LAWS GE IN ITS STATEMENT SAID THE OUTCOME VINDICATES ITS POSITION THAT MR RUSSELL'S CHARGES WERE BASELESS 9402170157 940217 REVIEW & OUTLOOK EDITORIAL CHOICE COURAGE TEACHERS' UNIONS HOPED THAT AFTER SPENDING MORE THAN 16 MILLION LAST YEAR TO DEFEAT A CALIFORNIA SCHOOL VOUCHER INITIATIVE THEY HAD BURIED THE IDEA NATIONALLY INSTEAD COMMUNITY LEADERS IN STATE AFTER STATE ARE BREAKING RANKS TO SUPPORT FULL SCHOOL CHOICE MOST TROUBLING FOR THE EDUCATIONAL ESTABLISHMENT IS THAT THE MOVEMENT INCLUDES MANY BLACKS HISPANICS AND DEMOCRATS THIS WEEK THE HISPANIC COMMUNITY FORUM ARIZONA'S LARGEST GRASSROOTS LATINO ORGANIZATION JOINED WITH THE STATE'S HISPANIC CHAMBER OF COMMERCE AND SEVERAL OTHER MINORITY GROUPS TO ENDORSE A SWEEPING EDUCATION REFORM BILL THAT'S NOW ONLY ONE OR TWO VOTES SHY OF PASSING THE LEGISLATURE THE BILL WOULD ALLOW SELFGOVERNING PUBLIC CHARTER SCHOOLS AND A PILOT VOUCHER PROGRAM THAT WOULD INCLUDE 8000 CHILDREN BY 1999 DEMOCRATIC REP LINDA AGUIRRE WAS A PUBLIC SCHOOL TEACHER FOR NINE YEARS AND THEN A SCHOOL BOARD MEMBER BEFORE BEING ELECTED TO THE LEGISLATURE SHE IS TIRED OF EXCUSES ABOUT WHY PUBLIC SCHOOLS DON'T WORK THE EDUCATION COMMUNITY HASN'T GIVEN MY VOTERS THE FULL STORY SHE TOLD US AFTER SHE DECIDED TO BACK SCHOOL CHOICE THE LOCAL TEACHERS' UNION WARNED CHOICE WOULD BANKRUPT SCHOOLS IN HER DISTRICT THEY IMPLY PUBLIC SCHOOLS WILL COLLAPSE IF WE ALLOW A FEW PARENTS SOME FREEDOM SHE SAYS IF THEY REALLY BELIEVE SCHOOLS ARE THAT BAD THEN WHAT KIND OF SYSTEM ARE THEY DEFENDING ACROSS THE COUNTRY STATE REP EDDIE GARCIA A DEMOCRAT WHO REPRESENTS PART OF HARTFORD CONN IS ASKING THE SAME QUESTION THIS WEEK HE JOINED WITH TOM LUBY THE DEMOCRATIC HOUSE MAJORITY LEADER AND SEVERAL GOP LEGISLATORS TO INTRODUCE A BILL TO ALLOW LOCALOPTION CHOICE PROGRAMS THE WASHINGTONBASED CENTER FOR EDUCATION REFORM REPORTS FAIRFIELD AND WATERBURY ARE LIKELY TO ADOPT CHOICE PLANS ONCE THEY GET THE GREEN LIGHT ELSEWHERE BRET SCHUNDLER THE REPUBLICAN MAYOR OF JERSEY CITY NJ REPORTS HE HAS SIGNIFICANT DEMOCRATIC SUPPORT FOR HIS CHOICE PROPOSAL BOTH MESSRS GARCIA AND SCHUNDLER HAVE POWERFUL STATE DEMOCRATS AS POTENTIAL ALLIES LAST MONTH US SENATORS JOSEPH LIEBERMAN OF CONNECTICUT AND BILL BRADLEY OF NEW JERSEY VOTED FOR A PILOT FEDERAL VOUCHER CHOICE PROGRAM STILL THE GROWING NUMBER OF DEMOCRATIC DISSIDENTS ON CHOICE CAN'T HIDE THE REALITY THAT THE PARTY REMAINS DOMINATED BY ITS TEACHERS' UNION ALLIES WHO SUPPLIED NEARLY A FOURTH OF ITS 1992 CONVENTION DELEGATES SOME PROCHOICE DEMOCRATS SAY THE PRESSURES ON THEM ARE SO INTENSE THEY WONDER IF THEY CAN REMAIN IN THEIR PARTY INDEED LAST WEEK GEORGIA STATE SENATOR ROY ALLEN WHO HAS REPRESENTED SAVANNAH IN THE STATE LEGISLATURE FOR 12 YEARS LEFT THE DEMOCRATIC PARTY TO BECOME A REPUBLICAN HE SAYS VOTERS IN HIS 55 BLACK DISTRICT SUPPORT SCHOOL CHOICE AND WORKFARE BUT DEMOCRATIC LEADERS WANT TO PRESERVE THE STATUS QUO MANY OF MY BLACK COLLEAGUES TOLD ME PRIVATELY THEY LIKE SCHOOL CHOICE BUT THEY CAN'T BUCK THE UNIONS HE TOLD US SO I'M NOW IN A PARTY I BELIEVE TRULY WANTS OPPORTUNITY FOR ALL SENATOR ALLEN SAYS HE IS PARTICULARLY OFFENDED THAT MANY POLITICIANS WHO OPPOSE CHOICE NONETHELESS EXERCISE THAT OPTION WHEN IT COMES TO THEIR OWN KIDS PRESIDENT CLINTON IS THE MOST FAMOUS EXAMPLE BUT A RECENT HERITAGE FOUNDATION SURVEY OF CONGRESS ON CHOICE FOUND HE ISN'T ALONE NEARLY 90 OF THE BLACK AND HISPANIC CAUCUSES IN CONGRESS RESPONDED AND THE RESULTS WERE EYEOPENING THE SURVEY FOUND THAT SEVEN OUT OF 10 HISPANIC CAUCUS MEMBERS WITH SCHOOLAGE CHILDREN SEND THEIR CHILDREN TO PRIVATE SCHOOLS EIGHT OUT OF 27 BLACK CAUCUS MEMBERS WITH CHILDREN OR 30 DO THE SAME NATIONWIDE ONLY 6 OF HISPANICS AND 4 OF BLACKS SEND THEIR CHILDREN TO PRIVATE SCHOOLS LEGISLATORS SUCH AS LINDA AGUIRRE EDDIE GARCIA AND ROY ALLEN ARE SHOWING GENUINE COURAGE WHEN THEY BUCK THE PRESSURE GROUPS AND SIDE WITH PARENTS ON EDUCATION REFORM ONE CAN'T SAY THE SAME FOR THOSE OFFICEHOLDERS WHO PRACTICE THE SAME EDUCATIONAL CHOICE IN THEIR PERSONAL LIVES THAT THEY BLOCK FOR THEIR CONSTITUENTS 9402170156 940217 WHO'S NEWS CAPITAL HOLDING CORP CAPITAL HOLDING CORP LOUISVILLE KY LARRY D THOMPSON 48 YEARS OLD A PARTNER WITH ATLANTA LAW FIRM KING & SPALDING WAS ELECTED A DIRECTOR OF THIS INSURANCE AND CONSUMER FINANCE CONCERN THE MOVE GIVES THE BOARD 13 MEMBERS 9402170155 940217 MONEYFUND YIELDS ROSE IN LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE WEEK ENDED TUESDAY REFLECTING THE FEDERAL RESERVE'S RECENT INCREASE IN SHORTTERM INTEREST RATES IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EDGED UP TO 279 FROM 275 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 275 FROM 271 WHILE THE 30DAY SIMPLE YIELD INCHED UP TO 271 FROM 269 THE 30DAY COMPOUND YIELD CREPT TO 274 FROM 273 ASSETS OF 642 TAXABLE FUNDS FIVE MORE THAN THE PREVIOUS WEEK FELL 850 BILLION TO 47307 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 786 BILLION OF THE TOTAL OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT THE REMAINING 6392 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS SHORTENED BY THREE DAYS TO 59 DAYS THIS IS A CLASSIC TEXTBOOK EXAMPLE OF HOW MONEY FUNDS RESPOND TO MOVES BY THE FED SAID WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AS MONEYMARKET YIELDS RISE MONEY FUNDS SHORTEN THEIR THE AVERAGE PORTFOLIO MATURITY AS BOTH A COMPETITIVE TACTIC AND AS A CAUTIONARY MOVE AGAINST FUTURE RATE INCREASES THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 192 FROM 182 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 3 FOR SOMEONE PAYING 36 IN TAXES AND TO 318 FOR THOSE WHO PAY 396 ASSETS OF 343 TAXEXEMPT FUNDS SLIPPED 3975 MILLION TO 11151 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO 55 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9402170154 940217 WHO'S NEWS ARTHUR J GALLAGHER & CO ARTHUR J GALLAGHER & CO ITASCA ILL T KIMBALL BROOKER WAS ELECTED TO THE BOARD OF THIS INSURANCE BROKERAGE CONCERN BRINGING THE NUMBER OF DIRECTORS TO 11 MR BROOKER 54 YEARS OLD IS PRESIDENT OF BARBARA OIL CO OF CHICAGO 9402170153 940217 MARKETING BRIEF NOTED MAGAZINES COWLES MAGAZINES INC A UNIT OF COWLES MEDIA CO IS LAUNCHING A QUARTERLY MAGAZINE HISTORIC TRAVELER THIS SPRING THE PREMIER ISSUE WILL BE SENT TO A MILLION READERS OF SUCH COWLES HISTORY MAGAZINES AS CIVIL WAR TIMES ILLUSTRATED IN HOPES OF SUBSCRIPTIONS 9402170152 940217 TECHNOLOGY & HEALTH RESEARCHERS CALL INSURERS ARBITRARY' IN COVERING BONEMARROW TRANSPLANTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL TWO DUKE UNIVERSITY RESEARCHERS CHARGED THAT INSURANCE COMPANIES CAN BE ARBITRARY AND CAPRICIOUS WHEN THEY DENY COVERAGE OF A COSTLY THERAPY FOR BREAST CANCER PATIENTS EVEN THOUGH THE COMPANIES APPROVE 77 OF INITIAL REQUESTS FOR COVERAGE THE DUKE PHYSICIANS SAID THEY EXAMINED THE INSURANCE COVERAGE OF 533 PATIENTS WHO WERE CANDIDATES FOR HIGHDOSE CHEMOTHERAPY FOLLOWED BY BONEMARROW TRANSPLANTS THE DOCTORS WILLIAM PETERS AND MARK ROGERS SPECIALIZE IN CANCER AND BONEMARROW TRANSPLANTS THEIR FINDINGS ARE PUBLISHED IN THIS WEEK'S EDITION OF THE NEW ENGLAND JOURNAL OF MEDICINE THE QUESTION OF WHO WILL PAY FOR BONEMARROW TRANSPLANTS HAS BECOME ONE OF THE BIGGEST CONTROVERSIES IN MEDICAL ETHICS SUCH TREATMENT FOR BREASTCANCER PATIENTS OFTEN COSTS MORE THAN 100000 THE PROCEDURE IS STILL IN CLINICAL TRIALS TO DETERMINE WHETHER IT WORKS BETTER THAN STANDARD CARE MANY DOCTORS REGARD THE TREATMENT AS PROMISING BUT SOME INSURANCE CARRIERS VIEW IT AS STILL EXPERIMENTAL PATIENTS AND THEIR LAWYERS HAVE PRESSED HARD FOR INSURERS TO COVER THE PROCEDURE DUKE'S DR PETERS HAS BEEN AN ESPECIALLY SPIRITED ADVOCATE OF WIDER INSURANCE COVERAGE OF PIONEERING CAREFREQUENTLY PITTING HIM AGAINST HEALTH INSURERS IN AN INTERVIEW HE STEPPED UP HIS CRITICISM OF THE CARRIERS' PRACTICES SAYING THE PRACTICES OFTEN AMOUNT TO BARRIERS TO CARE SEVERAL BIG INSURERS DISPUTED THE DUKE RESEARCHERS' CLAIM THAT COVERAGE DECISIONS ARE ARBITRARY I DON'T KNOW HOW WE COULD BE MORE SYSTEMATIC AND FORMAL ABOUT IT SAID WILLIAM MCGIVNEY DIRECTOR OF TECHNOLOGY ASSESSMENT AT AETNA LIFE & CASUALTY CO MR MCGIVNEY SAID AETNA RELIES ON INDEPENDENT CANCER SPECIALISTS AT LEADING RESEARCH CENTERS TO ASSESS ITS CASES AETNA THEN FOLLOWS THESE DOCTORS' RECOMMENDATIONS ON WHETHER BONEMARROW THERAPY IS WARRANTED STILL THE DUKE STUDY FOUND WIDE VARIANCES IN THE WAYS THAT DIFFERENT INSURERS HANDLED REQUESTS TO COVER THE BREASTCANCER THERAPY OF THE 20 LARGEST INSURERS PROVIDING COVERAGE IN THE STUDY FOUR APPROVED 100 OF INITIAL REQUESTS AND ANOTHER 12 APPROVED AT LEAST TWOTHIRDS OF REQUESTS BUT THREE INSURERS DENIED MORE THAN HALF THE REQUESTS THE INSURERS WEREN'T IDENTIFIED WHEN COVERAGE WAS DENIED DRS PETERS AND ROGERS SAID THE DECISION DIDN'T SEEM TO HAVE MUCH TO DO WITH THE HEALTH STATUS OF THE PATIENT THE DOCTORS SAID THEY CHECKED TO SEE IF DENIAL RATES WERE HIGHER FOR SICKER PATIENTS OR ONES WHO HADN'T RESPONDED TO PRIOR CHEMOTHERAPY BUT DR PETERS SAID THE ODDS OF DENIAL APPEARED TO BEAR LITTLE RELATION TO AVAILABLE MEDICAL OR SCIENTIFIC INFORMATION THOMAS SPITZER HEAD OF BONEMARROW TRANSPLANTS AT MASSACHUSETTS GENERAL HOSPITAL SAID INSURERS LATELY HAVE SEEMED MORE WILLING TO PAY FOR BONEMARROW TRANSPLANTS FOR BREASTCANCER PATIENTS THAT MAY REFLECT A GREATER CONCERN ABOUT LAWSUITS LATE LAST YEAR HEALTH NET A WOODLAND HILLS CALIF HEALTHMAINTENANCE ORGANIZATION WAS ORDERED BY A CALIFORNIA JURY TO PAY 89 MILLION TO THE ESTATE OF A 37YEAROLD WOMAN WHOSE REQUEST FOR A BONEMARROW TRANSPLANT HAD BEEN REBUFFED FOR THE PERIOD COVERED BY THE DUKE STUDY HOWEVER DRS PETERS AND ROGERS SAID THEY DIDN'T FIND A STATISTICALLY SIGNIFICANT CHANGE IN INSURERS' WILLINGNESS TO COVER BONEMARROW TRANSPLANTS THEY LOOKED AT DATA FROM 1989 TO 1992 THE DUKE DOCTORS FOUND THAT 77 OF PATIENTS GOT INSURERS' APPROVAL OF THEIR INITIAL REQUESTS FOR COVERAGE OF BONEMARROW THERAPY OF THE 121 PATIENTS WHO INITIALLY WERE DENIED COVERAGE 62 NONETHELESS RECEIVED TRANSPLANTS IN 39 OF THOSE CASES INSURERS ULTIMATELY DID PAY SOMETIMES AFTER PATIENTS HIRED ATTORNEYS IN THE OTHER 23 CASES PATIENTS GOT THE TREATMENT EITHER AS CHARITY CARE OR BY PAYING THE BILLS THEMSELVES EVEN THOUGH SUITS AND APPEALS HELP MORE PATIENTS GET INSURANCE COVERAGE DR PETERS SAID SUCH CHALLENGES ARE A LESSTHANIDEAL WAY TO PAY FOR CARE IT'S TERRIBLE THAT PATIENTS WHO ALREADY ARE FACING A LIFETHREATENING ILLNESS HAVE TO WORRY ABOUT HAVING THEIR LIVES DRAGGED THROUGH COURT HE REMARKED ACCOMPANYING THE DUKE STUDY WAS A GUEST EDITORIAL IN THE NEW ENGLAND JOURNAL THAT FURTHER REBUKED INSURERS IN THAT EDITORIAL DONALD LIGHT A PROFESSOR AT THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY CHARGED THAT INSURERS USE A HOST OF STANDARD PRACTICES TO DELAY OR DENY PAYMENTS TO DOCTORS CLINICS HOSPITALS MEDICAL SUPPLIERS AND PATIENTS FOR LEGITIMATE MEDICAL SERVICES 9402170151 940217 INTERNATIONAL SOUTH KOREA HOPES RUSSIAN ENGINEERS CAN LIFT AIRCRAFT INDUSTRY OFF GROUND BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA IN ITS AMBITIOUS DRIVE TO LEAPFROG JAPAN IN THE DEVELOPMENT OF A HOMEGROWN COMMERCIAL AIRCRAFT SOUTH KOREA IS TAPPING INTO A TALENT POOL THAT ITS ASIAN RIVAL LACKS IMPORTED RUSSIAN ENGINEERS IT IS AN UNLIKELY COLLABORATION THE COUNTRY THAT WAS BOMBED BY SOVIETBUILT FIGHTER JETS DURING THE KOREAN WAR IS TURNING TO RUSSIAN ENGINEERS TO HELP IT LAUNCH A WORLDCLASS AEROSPACE INDUSTRY BUT NECESSITY PRODUCES STRANGE BEDFELLOWS THE RUSSIANS ARE HAPPY TO SHARE THEIR KNOWLEDGE IN RETURN FOR RESEARCH FUNDING THEY CAN'T GET AT HOME WHILE THE SOUTH KOREANS ARE DELIGHTED TO GET OUTSIDE EXPERTISE THEY CAN'T FIND ELSEWHERE WITH COOPERATION FROM THE RUSSIANS OUR AEROSPACE INDUSTRY AND INDUSTRY IN GENERAL HAS BEEN SIGNIFICANTLY ACCELERATED SAYS PARK KUNG WOO GENERAL MANAGER OF DAEWOO HEAVY INDUSTRIES LTD'S AEROSPACE DIVISION WE ARE ACQUIRING TECHNOLOGY FROM THEM THAT THE US WON'T PROVIDE THERE IS ONLY ONE PROBLEM WITH SOUTH KOREA'S STRATEGY SOME SPECIALISTS SAY IT PROBABLY WON'T WORK RUSSIA'S OWN AVIATION INDUSTRY ALTHOUGH ADVANCED BY KOREAN STANDARDS HAS HAD LIMITED SUCCESS SELLING ITS PRODUCTS ABROAD ANALYSTS SAY THAT FEW RUSSIANBUILT COMMERCIAL AIRCRAFT COULD MEET STANDARDS SET BY THE US FEDERAL AVIATION ADMINISTRATION THE INDUSTRY NORM AMONG DEVELOPED NATIONS AND RUSSIA'S FIGHTERS ARE CONSIDERED LESS SOPHISTICATED THAN THEIR US AND EUROPEAN COUNTERPARTS RUSSIA'S STRENGTH IN THEORETICAL SCIENCE WON'T COMPENSATE FOR KOREA'S SHORTFALL IN APPLIED TECHNOLOGY FOREIGN AEROSPACE EXECUTIVES SAY TO ACCUMULATE SUCH KNOWHOW THE KOREANS NEED AN ESTABLISHED PARTNER TO TEACH THEM HOW TO DEVELOP MASTER TOOLS AVIONICS AND COMPOSITE MATERIALS THEY ALSO NEED TRAINING IN HOW TO INTEGRATE AERONAUTICS SYSTEMS EFFECTIVELY A CHALLENGE THAT BEDEVILS EVEN EXPERIENCED MANUFACTURERS MAYBE THE KOREANS CAN PUT TOGETHER SOMETHING THAT IN THE LONG RUN WILL HURT US SAYS THE PRESIDENT OF THE LOCAL SUBSIDIARY OF A MAJOR US AEROSPACE CONCERN BUT IF YOU'RE TALKING ABOUT RUSSIANSTYLE ENGINES WE CAN'T GET THAT WORRIED ABOUT IT DESPITE SUCH DOUBTS SOUTH KOREA HAS JUMPED INTO THE AEROSPACE RACE IN EARNEST LAST WEEK THE SEOUL GOVERNMENT ANNOUNCED A 344 MILLION PLAN TO DEVELOP A 50TO100SEAT TURBOPROP TRANSPORT AIRCRAFT BY 1998 THAT WOULD BE A STUNNING ACHIEVEMENT EVEN WITH HEAVY DOSES OF RUSSIAN EXPERTISE SOUTH KOREA'S AERONAUTICS INDUSTRY GOT STARTED ONLY IN 1979 AND TODAY REMAINS LIMITED TO ASSEMBLING COMPONENTS FOR BIG FOREIGN AIRCRAFT COMPANIES OVER THE LAST YEAR HOWEVER KOREA'S THREE MAJOR AEROSPACE COMPANIES HAVE ENTERED INTO HIGHPROFILE VENTURES WITH FOREIGN PARTNERS SAMSUNG GROUP'S SAMSUNG AEROSPACE INDUSTRIES LTD FOR EXAMPLE FORMED A PARTNERSHIP WITH LOCKHEED FORT WORTH CO A UNIT OF LOCKHEED CORP CALABASAS CALIF TO BUILD A MILITARY TRAINER AIRCRAFT IN ADDITION DAEWOO CORP'S DAEWOO HEAVY INDUSTRIES AND KOREA'S LEADING AIRLINE KOREAN AIR LAST YEAR UNVEILED A PANASIAN CONSORTIUM CALLED ASIAN AIR EXPRESS DEDICATED TO DEVELOPING A 100SEAT TURBOFAN AIRCRAFT THE CONSORTIUM ORIGINALLY KNOWN AS ASIAN AIRBUS HAS COMMITMENTS FROM PARTNERS THROUGHOUT ASIA VALUED AT ABOUT 1 BILLION BUT CONSORTIUM OFFICIALS ACKNOWLEDGE THEY LACK A PARTNER WITH A TRACK RECORD THAT'S WHERE THE RUSSIANS COME IN MR PARK SAYS LATE LAST YEAR HYUNDAI PRECISION & INDUSTRY CO AN AFFILIATE OF THE HYUNDAI GROUP FORMED A JOINT VENTURE WITH AS YAKOVLEV OF RUSSIA TO BUILD SMALL AND MIDSIZE COMMUTER AIRCRAFT IN JANUARY HALLA ENGINEERING & HEAVY INDUSTRIES LTD ANNOUNCED ITS INTENTION TO BUILD AIRPLANES IN PART WITH RUSSIAN ASSISTANCE DAEWOO HAS ESTABLISHED A RESEARCH INSTITUTE IN MOSCOW THAT EVENTUALLY WILL ACCOMMODATE ABOUT 100 SCIENTISTS A COLONY OF RUSSIAN ENGINEERS IS SETTLING IN AT KOREA'S SCIENCE TOWN IN TAEDOK ABOUT A THREEHOUR DRIVE FROM SEOUL WHERE THE COUNTRY'S TOP CONGLOMERATES HAVE RESEARCH CENTERS THEY ARE HIRED BY THE BUSINESS GROUPS MUCH AS FREELANCE ATHLETES ARE RECRUITED BY SPORTS TEAMS IN THE US RUSSIAN OFFICIALS HERE SAY THEY ARE PLEASED BY THE ALLIANCE OF RUSSIAN BRAINS AND KOREAN MANUFACTURING BRAWN OUR SCIENCE IS IN GREAT TROUBLE SAYS VALERIY NAZAROV PRESIDENT OF THE RUSSIAN FEDERATION CHAMBER OF COMMERCE AND INDUSTRY IN SEOUL IF OUR PEOPLE CAN'T RAISE MONEY THERE THEY'LL GO SOMEWHERE ELSE 9402170150 940217 INTERNATIONAL IS JAPANESE QUEST FOR A PERFECT MELON REALLY THAT FRUITFUL ALL OF THE PORKBARREL WORK ISN'T DONE IN WASHINGTON RIPENESS RESEARCH SHOWS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE ESCALATING JAPANUS TRADE WAR MAY DEPRIVE AMERICA OF CUTTINGEDGE MELON TECHNOLOGY DEEP INSIDE JAPAN'S MINISTRY OF AGRICULTURE FOUR SCIENTISTS HAVE SPENT FIVE GOVERNMENTFUNDED YEARS DEVELOPING A MACHINE TO DETERMINE MELON RIPENESS IMAGINE NO MORE STANDING IN THE PRODUCE SECTION FRUITLESSLY TAPPING FOR THAT A POINT CANTALOUPE BY ITSELF IT'S ONE SMALL SLICE FOR THE BREAKFAST TABLE BUT IT'S ALSO PART OF ONE GIANT JAPANESE GOVERNMENT BUDGET 675 BILLION FOR 1994 AND DURING RECENT WEEKS OF AGONIZED DEBATE OVER TAX CUTS TAX HIKES AND BUDGET DEFICITS NO ONE EVER ASKED WHETHER SUCH PROJECTS AND THERE ARE PLENTY ARE REALLY NECESSARY JAPAN HAS NO EQUIVALENT OF THE GOLDEN FLEECE AWARD HONORING GREAT US GOVERNMENT BOONDOGGLES INSTEAD EVERYONE APPEARS TO AGREE THAT JAPAN'S BUDGET IS LEAN MEAN AND SQUEAKY CLEAN WHICH BRINGS US TO THE MELON MACHINE IT LOOKS LIKE A MINIATURE SET OF MONKEY BARS PLUS A PENDULUM AND MICROPHONE INSERT MELON HIT IT MEASURE THUMP IF SOUND PASSES THROUGH AT 578 METERS 1907 FEET PER SECOND IT'S PERFECTION WE'RE BEYOND THE EXPERIMENTAL STAGE NOW WE'RE READY TO BRING THE MACHINE TO MARKET SAYS JUNICHIRO SUGIYAMA SENIOR RESEARCHER IN THE MINISTRY OF AGRICULTURE BUT THE TRADEBARRIER SCRUTINIZERS IN WASHINGTON MAY WANT TO CONSIDER THIS CHOOSING A RETAIL PRICE IS STILL A PROBLEM MAYBE OVER A MILLION YEN OR 10000 SAYS MR SUGIYAMA MAYBE UNDER 100000 YEN IT'S TOUGH TO SAY SINCE WE DON'T KNOW HOW MUCH WE SPENT THERE ARE LARGER EXAMPLES OF BUDGET BUTA OR PORK TWO HOURS FROM TOKYO THE TINY VILLAGE OF KAWAI IS FINISHING A 464 MILLION MULTILANE BRIDGE BETWEEN TWO POKY ROADS IT'S NECESSARY SAYS AN ANXIOUS VILLAGE OFFICIAL THE KIDS ACROSS THE RIVER NEED IT SO THEY CAN WALK OVER TO THE JUNIOR HIGH SCHOOL TOTAL SCHOOL POPULATION MEANWHILE ENGINEERS IN NIIGATA RECENTLY SPENT 12 MILLION ON DESIGNER MANHOLE COVERS THEY'RE REALLY EYECATCHING BOASTS PLANNER MICHIHIKO MATSUOKA THIS WAY PEOPLE UNDERSTAND THE UTILITY OF SEWAGE WE THINK IT WILL ENLIGHTEN PEOPLE NOT TO DROP STONES INTO SEWAGE 9402170149 940217 INTERNATIONAL SWISS BANK CORP HAD NET GROUP PROFIT RISE OF 36 IN LATEST YEAR SPECIAL TO THE WALL STREET JOURNAL BASEL SWITZERLAND SWISS BANK CORP A MAJOR SWISS COMMERCIAL BANK ANNOUNCED A 36 RISE IN NET GROUP PROFIT FOR 1993 THE BANK'S NET GROUP PROFIT ROSE TO 1365 BILLION SWISS FRANCS 9404 MILLION FROM 1006 BILLION FRANCS IN 1992 WHEN NET INCOME WAS HELPED BY EXTRAORDINARY INCOME SWISS BANK ALSO PLANS A DIVIDEND INCREASE OF TWO FRANCS PER BEARER SHARE TO 16 FRANCS AND OF ONE FRANC PER REGISTERED SHARE TO EIGHT FRANCS THE 36 ADVANCE IN PROFIT WAS AT THE UPPER RANGE OF ANALYSTS' EXPECTATIONS SBC STOCK SURGED 33 OR 16 FRANCS 11 TO CLOSE AT 506 FRANCS ON THE ZURICH EXCHANGE OPERATING PROFIT LAST YEAR ROSE 31 TO 9177 BILLION FRANCS FROM 7008 BILLION FRANCS WRITEOFFS AND VALUE ADJUSTMENTS ROSE 44 TO 277 BILLION FRANCS IN 1993 FROM 1922 BILLION FRANCS THE YEAR BEFORE AS IN THE PRIOR YEAR THE BANK PLANS TO PROPOSE DISTRIBUTION OF AN OPTIONAL DIVIDEND ALLOWING SHAREHOLDERS TO CHOOSE TO RECEIVE THE DIVIDEND IN CASH OR IN THE FORM OF SHARES IN THE SAME CATEGORY THE SHARES FROM THE OPTIONAL DIVIDEND CARRY WARRANTS ENTITLING THE HOLDER TO SUBSCRIBE TO FURTHER SHARES OF THE SAME CATEGORY THE BANK ALSO PROPOSES CREATION OF AUTHORIZED CAPITAL OF 100 MILLION FRANCS PAR VALUE FOR THE ACQUISITION OF COMPANIES OR PARTS OF COMPANIES FOR EQUITY STAKES OR FOR A RIGHTS ISSUE FURTHER THE BANK PLANS THE CREATION OF CONDITIONAL CAPITAL OF A PAR VALUE OF 150 MILLION FRANCS FOR CONVERTIBLE BONDS AND BONDS WITH WARRANTS FINALLY IT PLANS TO CREATE CONDITIONAL CAPITAL OF 30 MILLION FRANCS PAR VALUE FOR THE ISSUE OF EMPLOYEE SHARES SWISS BANK'S RETURN ON EQUITY ROSE TO 10 LAST YEAR FROM 79 THE YEAR BEFORE ASSETS ROSE 3 IN 1993 TO 207 BILLION FRANCS FROM 2009 BILLION FRANCS IN 1992 9402170148 940217 NORMAN NARDINI ROCKS ALONG ROADS RICH WITH DREAMS STILL YEARNING FOR FAME AT 43 REGIONAL MUSICIAN HAS PAID HIS DUES SUNG SOME BLUES BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL SWISSVALE PA HOW DO YOU WANT ME TO DO THE LIGHTS NORM A BARTENDER SHOUTS ACROSS A SMOKY ROOM TO A SLIP OF A MAN WHO'S SAYING CHECK CHECK CHECK INTO A MICROPHONE MAKE THEM LOW REPLIES NORMAN NARDINI AND SEXY HE GRINS AND BEGINS STRUMMING A FENDER STRATOCASTER A FEW MINUTES LATER MR NARDINI'S THREEMAN BAND LAUNCHES INTO RAUCOUS ROCKABILLY EMOTIONAL BLUES AND BASIC ROCK PEOPLE SIPPING BEER AT SMALL TABLES SING ALONG FRANKIE'S BAR IN SWISSVALE A NEIGHBORHOOD JOINT THAT DRAWS RETIRED STEELWORKERS AND THEIR UNEMPLOYED OFFSPRING IS MR NARDINI'S REGULAR SUNDAY NIGHT GIG WEDNESDAY NIGHTS HE PERFORMS ACROSS THE ALLEGHENY RIVER IN BLAWNOX PA OTHER NIGHTS HE PLAYS WHEREVER THEY'LL PAY HIM THERE'S NO GLAMOUR IN THIS ROUTINE SCANT MONEY AND LESS FAME BUT THIS 43YEAROLD SINGER AND GUITARIST WHO DRIVES THE REGIONAL CLUB CIRCUIT IN A BEATUP VAN AND HIS LUCKY BLACK LOAFERS IS AN ESSENTIAL PART OF THE NATIONAL MUSIC FABRIC SAYS DAVID FRICKE MUSIC EDITOR OF ROLLING STONE MAGAZINE THE WHOLE AESTHETIC OF ROCK AND ROLL IS BASED ON WHAT HAPPENS IN BARS AND GARAGES NOT BOARDROOMS MR NARDINI BELONGS TO A FRATERNITY OF AGING MUSICIANS WHO FORMED BANDS IN THE 1960S AND HAD SUBSEQUENT BRIEF BRUSHES WITH NATIONAL FAME BUT THEY NEVER ACHIEVED STAR STATUS AND MANY ENDED UP PLAYING THE SAME SMALL CLUBS WHERE THEY STARTED THESE GUYS HANG IN THERE FOREVER AND EVER THEY THRIVE ON THE FACT THAT PEOPLE GET ENJOYMENT OUT OF THEM OTHERWISE I'D FEEL SORRY FOR THEM SAYS BOO BROWNING A NEW ORLEANSBASED WRITER WHO SPECIALIZES IN MUSIC AND POP CULTURE INDEED EVER SINCE HIGH SCHOOL MR NARDINI HAS BEEN ABLE TO FOCUS ON LITTLE ELSE BESIDES PERFORMING A STINT IN MUSIC SCHOOL WAS TOO SLOW AND NO WORK WAS EVER AS COMPELLING AS PLAYING IN A BAND WITH THE GOAL OF ARRANGING HIS LIFE SO HE DIDN'T NEED A DAY JOB HE HAS SPENT MORE THAN 25 YEARS PLAYING CLUBS FROM CLEVELAND TO THE JERSEY SHORE WITH PITTSBURGH AS HOME BASE HE ATTRACTS THE COLLEGEAGE CROWD WITH HIS ROLLICKING ACT BUT MR NARDINI ALSO HAS BUILT A CORE OF LONGTIME FANS WHO HAVE GROWN OLDER WITH HIM TO ME IT'S JUST PURE ROCK AND ROLL HE GETS YOU TO UNWIND AT THE END OF THE WEEK AND GETS YOU READY FOR THE NEXT WEEK SAYS ERIK K HUBER OF PITTSBURGH 43 WHO HAS FOLLOWED MR NARDINI SINCE THE DAYS HE BORDERED ON A NATIONAL BREAKTHROUGH WITH A MAJOR LABEL RECORDING CONTRACT I'VE BEEN THE BOYMOSTLIKELYTOSUCCEED A COUPLE OF TIMES SAYS MR NARDINI BETWEEN SETS ONE NIGHT IN THE KITCHEN OF EXCUSES A PITTSBURGH BLUES CLUB THE SIZE OF A SHOEBOX THE CRAMPED KITCHEN WHERE SPICY CHICKEN WINGS SIZZLE ON A BIG OLD STOVE SERVES AS A DRESSING ROOM I STILL KIND OF KEEP A HOPE UP I WORK CONSTANTLY AT IT SO IF I HAVE THE CHANCE TO BE ON STAGE WITH SOMEONE BIGTIME I CAN GO OUT AND KICK A LITTLE APROF HE SAYS IT TAKES TALENT A LOT OF LUCK AND SOME SMARTS TO MAKE IT BIG SOME MUSICIANS ARE QUITE GOOD AT SABOTAGING THEMSELVES AT CRITICAL POINTS IN THEIR CAREERS CHARACTERS LIKE THIS HAVE KIND OF A SELFDESTRUCTIVE THING IN THEM SAYS GUITARIST SID MCGINNIS A PITTSBURGH NATIVE WHO WAS IN A BAND WITH MR NARDINI IN THE EARLY '70S THE BAND WAS BORROWED TIME AND ITS MEMBERS SHARED A FARMHOUSE IN KENTUCKY A HIPPIESTYLE ROCK EDEN DURING THE PSYCHEDELIC ERA WHEN THE GROUP BROKE UP MESSRS MCGINNIS AND NARDINI HEADED BACK TO PITTSBURGH BUT WHILE MR NARDINI HUNG AROUND MR MCGINNIS EVENTUALLY MOVED ON TO NEW YORK TODAY MR MCGINNIS IS A GUITARIST WITH PAUL SHAFFER AND THE CBS ORCHESTRA WHICH PERFORMS ON THE LATE SHOW WITH DAVID LETTERMAN AND HAS PLAYED WITH SUCH MUSICAL GREATS AS BOB DYLAN PETER GABRIEL AND DAVID BOWIE NORMAN'S MORE THAN AN ARTIST HE'S A REAL ENTERTAINER SAYS MR MCGINNIS WHO CATCHES MR NARDINI'S ACT EVERY FEW YEARS BUT HE COULD BE AN IDIOT AT TIMES HE HAD THE POTENTIAL TO GO NUTS ON A GIG AND SCREW THINGS UP FOR HIMSELF WITH A SCOUT INDEED MR NARDINI'S LIFE HAS BEEN FULL OF OPPORTUNITIES SEIZED AND MISSED THOUGH HE SAYS I'M MUCH LESS SELFDESTRUCTIVE NOW AND MORE COMPETITIVE HIS CAREER STARTED WITH A GUITAR HIS PARENTS BOUGHT HIM IN 1962 FOLLOWED BY A SUCCESSION OF GARAGE BANDS THEN AN EMBARRASSING STINT AS A HOTEL LOUNGE LIZARD CLAD IN A BLACKANDWHITE JUMPSUIT HIS FIRST BIG BREAK CAME IN 1974 WHEN A DIVISION OF ATLANTIC RECORDS TOOK A LIKING TO A MARVIN GAYE SONG HE HAD COVERED MR NARDINI QUICKLY PUT A BAND TOGETHER AND CALLED IT DIAMOND REO PROPELLED BY THE RECORD COMPANY'S SUPPORT DIAMOND REO TOURED THE COUNTRY OPENING FOR SUCH MAJOR ACTS AS TED NUGENT KISS BLUE OYSTER CULT KANSAS AND RUSH WE STARTED FIGURING OUT WHAT IT WAS TO BE A REAL ROCK BAND INSTEAD OF GUYS WHO MADE RECORDS SAYS MR NARDINI BUT THE GROUP HAD NO DISCIPLINE WE STARTED BEING REALLY WILD AND CRAZY AND CUT OURSELVES OUT OF THE INDUSTRY MR NARDINI SAYS ATLANTIC DROPPED THE GROUP AFTER ABOUT A YEAR FED UP WITH THEIR TENDENCY TO BE UNRELIABLE DEFIANT AND TO PARTY TOO MUCH ACCORDING TO FORMER BAND MEMBERS BUDDAH RECORDS AN INDEPENDENT LABEL STEPPED IN BUT BOWED OUT AFTER ABOUT 18 MONTHS EVEN THE BAND'S MANAGER QUIT SOON DIAMOND REO WAS BACK IN PITTSBURGH AND AFTER RECORDING A COUPLE OF ALBUMS BROKE UP AL NALLY THE MANAGER WHO QUIT SAYS HE ENCOURAGED MR NARDINI TO GO OUT ON HIS OWN NORM ISN'T A GREAT SINGER OR GREAT MUSICIAN BUT NORM IS GREAT AT WHAT NORM DOES HE HAS A FEEL HE HAS PERSONALITY MR NALLY SAYS A NEW ACT NORMAN NARDINI AND THE TIGERS WAS SUCCESSFUL IN REGIONAL CLUBS AND GOT A DEAL WITH CBS RECORDS THEIR FIRST ALBUM HAD BACKUP VOCALS BY AN UPANDCOMING ROCKER NAMED JON BON JOVI AND ACCOMPANIMENT BY DAVID BRYAN LATER BON JOVI'S KEYBOARDIST BUT THE ALBUMS DIDN'T SELL WELL AND CBS DROPPED THE GROUP MOREOVER MR NARDINI WAS GETTING TIRED OF HIS OWN CRAZY NORMAN ACT THE TIGERSTRIPED TUX THE MOCK STRIPTEASE I DID IT SO MANY YEARS I FELT I WAS IMITATING MYSELF HE SAYS I WASN'T GETTING THE COMMERCIAL SUCCESS SO I STARTED WANTING RECOGNITION AS A SONG WRITER BUT NO ONE EVER MENTIONED MY SONGS THE REAL ME MR NARDINI BROKE UP THE TIGERS IN 1986 EXPERIMENTED WITH COUNTRY MUSIC AND TOOK GUITAR LESSONS MIDDLE AGE WAS UPON HIM AND HE STARTED WORRYING ABOUT FINANCIAL SECURITY HE BUILT UP A SMALL BUSINESS RENTING OUT RECORDING AND REHEARSAL SPACE IN A BUILDING HE OWNED IN SWISSVALE AND DEVELOPED A TENYEAR PLAN HE BELIEVES HE'S ABOUT HALFWAY THERE THAT IS WHERE I CAN PLAY WELL ENOUGH AND SING WELL ENOUGH AND HAVE MADE THE INROADS IN THE BUSINESS TO GET SOMEONE TO BELIEVE IN ME AS A FORCE SAYS MR NARDINI WHO NOW RECORDS ON THE TINY CIRCUMSTANTIAL RECORDS LABEL IN A REVIEW OF MR NARDINI'S BREAKDOWN IN PARADISE RELEASED LAST YEAR STEVE SIMELS POP MUSIC EDITOR OF STEREO REVIEW DESCRIBED THE MUSICIAN AS AN IMPROBABLE CROSS BETWEEN GUITARIST STEVIE RAY VAUGHAN AND COMEDIAN DENNIS LEARY ON STAGE MR SIMELS SAYS MR NARDINI IS A SPECTACULAR GUITAR PLAYER AND UNBELIEVABLE SHOWMAN IRONICALLY MR NARDINI'S LATEST RECOGNITION HAS BEEN IN GERMANY WHERE HE HAD A HIT SINGLE A FEW YEARS AGO AND TOURED BAVARIA TONIGHT AT EXCUSES THE STEAMING BAR FILLS WITH MR NARDINI'S RHYTHMANDBLUES SONGS PUNCTUATED BY BAWDY JOKES AND OCCASIONAL WHOOPS AND HOLLERS THE PACKED HOUSE IS A MIXTURE OF COLLEGE KIDS AND VETERAN NORMAN FANS IN THEIR LATE 30S AND 40S AND THEY ARE FIERCELY PROTECTIVE HE SOMETIMES GETS OUT INTO THE AUDIENCE DURING A SONG AND I WATCH HIS BACK FOR HIM SAYS BOB ALBENZE 41 A BEARDED BEAR OF A MAN WHO'S BEEN FOLLOWING MR NARDINI FOR ABOUT 15 YEARS I MAKE SURE HE DOESN'T FALL AND GET HURT IN THE BACKGROUND MR NARDINI SINGS THE OLDER I GET THE BETTER I USED TO BE 9402170147 940217 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON RONALD D CORWIN 53 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POSITION AT THE NATIONAL WESTMINSTER BANCORP UNIT OF THIS BANKING AND FINANCIAL SERVICES COMPANY MR CORWIN WAS FORMERLY SENIOR VICE PRESIDENT AND REGIONAL BUSINESS MANAGER RESPONSIBLE FOR BRANCH BANKING IN NORTHERN NEW JERSEY AND WESTCHESTER COUNTY NEW YORK 9402170146 940217 WHO'S NEWS STERLING ELECTRONICS CORP STERLING ELECTRONICS CORP HOUSTON DAVID A SPOLANE 39YEAROLD VICE PRESIDENT SEMICONDUCTOR MARKETING WAS ELECTED TO THE BOARD OF THIS ELECTRONICPARTS DISTRIBUTOR SUCCEEDING HIS FATHER MICHAEL S SPOLANE WHO DIED JAN 28 OF A HEART AILMENT DAVID IS THE TWIN BROTHER OF RONALD S SPOLANE WHO WAS RECENTLY ELECTED TO SUCCEED HIS FATHER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9402170145 940217 WHO'S NEWS TELEGLOBE INC TELEGLOBE INC MONTREAL CHARLES SIROIS WAS NAMED CHAIRMAN SUCCEEDING J BRIAN AUNE WHO REMAINS ON THE BOARD MR SIROIS REMAINS CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS COMPANY ANDRE LEBEL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TELEGLOBE CANADA INC UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF TELEGLOBE INC MR SIROIS WAS FORMERLY PRESIDENT MR LEBEL REMAINS HEAD OF TELEGLOBE CANADA 9402170144 940217 ORDER IN THE COURT THE JUDGE IS IN SEARCH OF PERSONAL SATISFACTION BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL JUDGE RICHARD POSNER IS SITTING IN JUDGMENT OF HIS FELLOW JURISTS MOST OF THEM HE SAYS AREN'T PROMETHEANS OR SAINTS BUT ORDINARY UTILITY MAXIMIZERS UTILITY IS ECONOMIST LINGO FOR PERSONAL SATISFACTION THAT SAYS JUDGE POSNER IS WHAT JUDGES WANT WHEN YOU CLEAR AWAY THE FANCY TALK ABOUT FAIRNESS AND LIBERTY A REAGAN APPOINTEE TO THE US APPEALS COURT IN CHICAGO JUDGE POSNER 55 YEARS OLD HELPED PIONEER A WHOLE NEW SCHOOL OF LEGAL THOUGHT KNOWN AS LAW AND ECONOMICS WHICH APPLIES ECONOMIC PRINCIPLES TO LEGAL PROBLEMS NOW JUDGE POSNER HAS TURNED HIS ECONOMIC EYE ON THE BLACKROBED SET WHO HE NOTES SHOULDN'T BE SEEN AS MIRACULOUSLY IMMUNE TO THE TUG OF SELFINTEREST IN AN ARTICLE IN THE MOST RECENT ISSUE OF THE SUPREME COURT ECONOMIC REVIEW HE OFFERS THESE THOUGHTS BECAUSE THE JUDICIARY HAS BEEN PLACED ON A NONPROFIT BASIS WE SHOULD EXPECT THAT JUDGES ON AVERAGE DO NOT WORK AS HARD AS LAWYERS OF COMPARABLE AGE AND ABILITY I BELIEVE THAT THIS IS TRUE AT LEAST OF APPELLATE JUDGES BUT THAT ISN'T NECESSARILY A BAD THING SINCE LEISURE IS A FORM OF INCOME AN INCREASE IN LEISURE SHOULD REDUCE THE AMOUNT OF PECUNIARY INCOME DEMANDED BY JUDGES OF A GIVEN QUALITY IN ADDITION TO MONEY AND FREE TIME JUDGES SEEK POPULARITY AMONG COLLEAGUES OR SO SAYS JUDGE POSNER A BUSY ACTIVE FORCEFUL JUDGE CAN IMPOSE COSTS ON HIS COLLEAGUES BY WRITING MANY SEPARATE OPINIONS TO WHICH THEY HAVE TO RESPOND BY CRITICIZING THEIR WORK AND BY MAKING ARGUMENTS THAT THEY HAVE DIFFICULTY ANSWERING IN AN INTERVIEW THE AUTHOR SAYS THAT HE HIMSELF AVOIDS NITPICKING I WILL HOLD MY NOSE AND JOIN OPINIONS THAT I DON'T AGREE WITH FULLY JUDGE POSNER HIMSELF HAS WRITTEN MORE THAN 1000 MAJORITY OPINIONS IN A DOZEN YEARS BUT HE BELIEVES THAT FEW OTHER APPELLATE JUDGES GET THEIR JOLLIES FROM WRITING IT'S NOT IMPORTANT TO MOST JUDGES WHO ARE HAPPY TO CEDE OPINIONWRITING TO EAGER LAW CLERKS BELIEVING THAT THE CORE JUDICIAL JOB IS MAKING DECISIONS NOT JUSTIFYING THEM JUDGE POSNER WRITES WHAT REACTION HAVE JUDGE POSNER'S UNBLINKING OBSERVATIONS ELICITED AMONG HIS COLLEAGUES ZERO HE SAYS 9402170143 940217 INTERNATIONAL VOLKSWAGEN BRAZILIAN SALES JUMP WOLFSBURG GERMANY GERMANY'S VOLKSWAGEN AG SAID ITS 1993 SALES IN BRAZIL ROSE 40 FROM A YEAR EARLIER TO 389723 VEHICLES THE HIGHEST LEVEL SINCE 1980 THE CAR MAKER SAID IT ACHIEVED A MARKET SHARE OF 359 IN BRAZIL SALES IN ARGENTINA CLIMBED 28 TO 46495 VEHICLES IN 1993 VW SAID ITS MARKET SHARE ROSE TO 117 FROM THE PREVIOUS YEAR'S 107 9402170142 940217 XEROX TO CONSOLIDATE CENTERS STAMFORD CONN XEROX CORP SAID IT WILL CONSOLIDATE SIX REGIONAL CUSTOMER ADMINISTRATION CENTERS INTO FOUR LOCATIONS IN AN EFFORT TO IMPROVE PRODUCTIVITY THE COMPANY WILL EXPAND FACILITIES IN TAMPA FLA AND PARK RIDGE ILL WHILE MAINTAINING OPERATIONS IN LEWISVILLE TEXAS AND SANTA ANA CALIF CENTERS IN STAMFORD CONN AND ARLINGTON VA ARE BEING CONSOLIDATED MOST OF THE 700 EMPLOYEES AFFECTED WILL BE OFFERED TRANSFERS TO THE NEW FACILITIES 9402170141 940217 CANADA BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SOLD AT AN AUCTION YESTERDAY C23 BILLION US17 BILLION OF 575 BONDS DUE MARCH 1 1999 AT AN AVERAGE YIELD OF 5862 PROCEEDS WILL BE USED FOR REDEMPTION OF C15 BILLION OF GOVERNMENT BONDS MATURING MARCH 1 1994 AND FOR GENERAL GOVERNMENT PURPOSES 9402170140 940217 PENN CENTRAL TO REDEEM DEBT CINCINNATI PENN CENTRAL CORP SAID ON MARCH 25 IT WILL REDEEM ALL 162 MILLION OF ITS OUTSTANDING 9 1/2 SUBORDINATED DEBENTURES DUE AUG 1 2002 THE DEBENTURES WILL BE REDEEMED AT A PRICE OF 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED AND UNPAID INTEREST THROUGH THE REDEMPTION DATE THE COMPANY SAID IT WILL FUND THE REDEMPTION WITH INTERNAL CASH RESERVES AND PROCEEDS FROM THE LIQUIDATION OF TEMPORARY INVESTMENTS PENN CENTRAL IS ENGAGED PRIMARILY IN THE SPECIALTY PROPERTY AND CASUALTY INSURANCE BUSINESSES 9402170139 940217 AMOCO UNIT'S PACT FOR PLANT CHICAGO AMOCO PRODUCTION CO A SUBSIDIARY OF AMOCO CORP SAID IT SIGNED A LETTER OF INTENT WITH A UNIT OF TRIDENT NGL HOLDINGS INC TO BUILD A NATURALGAS LIQUIDS PROCESSING PLANT IN THE HUGOTON FIELD OF SOUTHWEST KANSAS AMOCO AN OIL AND NATURALGAS COMPANY DECLINED TO GIVE THE VALUE OF THE PROPOSED PLANT WHICH IT WILL OPERATE TRIDENT NGL IS A NATURALGAS PROCESSING COMPANY BASED IN THE WOODLANDS TEXAS 9402170138 940217 PRUDENTIAL BROKER WHO STARS IN AD IS SUED BY INVESTOR BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC SEEMS TO BE RUNNING INTO LEGAL SPATS AT EVERY TURN THESE DAYS AN INVESTOR SUED A PRUDENTIAL SECURITIES STOCKBROKER STARRING IN THE FIRM'S NEW STRAIGHT TALK TELEVISION ADVERTISING CAMPAIGN ALLEGING FRAUD IN HIS LIMITEDPARTNERSHIP ACCOUNT THE INVESTOR MAXIMOS MARDELLI AN 81YEAROLD ROMAN CATHOLIC PRIEST SAID THE BROKER IMPROPERLY FORCED HIM TO ACCEPT A SMALL SETTLEMENT INVOLVING A 200000 PORTFOLIO OF PRUDENTIAL REALESTATE PARTNERSHIPS RATHER THAN ADVISING HIM OF OTHER LEGAL OPTIONS THE SUIT FILED IN A LOS ANGELES FEDERAL COURT IS TICKLISH FOR THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL LAUNCHED THE AD CAMPAIGN WITH MUCH FANFARE EARLIER THIS MONTH IN A BID TO POLISH ITS TARNISHED IMAGE THE ADS FEATURE PRUDENTIAL BROKERS LEVELING WITH THEIR CLIENTS ABOVE THE MESSAGE PRUDENTIAL SECURITIES TODAY IT STARTS WITH STRAIGHT TALK PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM HAS SET UP A 330 MILLION REPARATIONS FUND AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS PRUDENTIAL HAS BEEN ACCUSED OF MISLEADING INVESTORS ON THE RISKS AND RETURNS OF 815 BILLION OF PARTNERSHIPS IN THE 1980S THE BROKER JEFFERY D DAGGETT COULDN'T BE REACHED FOR COMMENT BUT PRUDENTIAL SAID THE 40YEAROLD MR DAGGETT HAS HAD A SPOTLESS COMPLIANCE HISTORY SINCE JOINING PRUDENTIAL IN 1986 INDEED A CHECK OF THE BROKER'S COMPLIANCE RECORD WITH REGULATORS SHOWS NO DISCIPLINARY CASES PRUDENTIAL SAID MSGR MARDELLI DIDN'T COMPLAIN TO THE FIRM IN THE MORE THAN SIX YEARS HE HAD AN ACCOUNT THERE NOR DID HE EVER COMPLAIN ABOUT THE REALESTATE PARTNERSHIP SETTLEMENT IN A STATEMENT PRUDENTIAL SAID IN OUR EXPERIENCE IT'S MOST IRREGULAR FOR A CLIENT OR HIS LEGAL REPRESENTATIVE TO COMMENCE A PROCEEDING AGAINST A BROKER WITHOUT FIRST MAKING A COMPLAINT TO THE FIRM JOSEPH LOVRETOVICH A WOODLAND HILLS CALIF LAWYER REPRESENTING MSGR MARDELLI SAID THE COMPLAINT WAS IN THE WORKS FOR AWHILE BEFORE RECENTLY SEEING THE PRUDENTIAL COMMERCIALS FEATURING MR DAGGETT PRU ISN'T INVOLVED IN STRAIGHT TALK ASSERTED MR LOVRETOVICH THEY SHOULD STOP TRYING TO USE THE LEGAL SYSTEM TO MINIMIZE THEIR EXPOSURE PRUDENTIAL FOR ITS PART SAYS MR LOVRETOVICH HAS FILED MORE THAN 15 SIMILAR CASES ON BEHALF OF PRUDENTIAL INVESTORS ALLEGING THAT THEY WERE TOLD THEY HAD NO OPTION BUT TO SETTLE REALESTATE PARTNERSHIP CASES WHEN MR DAGGETT INHERITED MSGR MARDELLI'S ACCOUNT ITS VALUE WAS ABOUT 300000 PRUDENTIAL SAID DESPITE LOSSES IN THE MONSIGNOR'S 100000 INVESTMENT IN VMS REALTY PARTNERS REALESTATE PARTNERSHIPS HIS BROKERAGE ACCOUNT WAS STILL ABOUT 300000 WHEN HE TRANSFERRED FROM PRUDENTIAL THE FIRM SAID MSGR MARDELLI TOOK PART IN THE VMS CLASSACTION SETTLEMENT IN 1991 IN WHICH INVESTORS RECEIVED JUST PENNIES ON THE DOLLAR MSGR MARDELLI WHO COULDN'T BE REACHED FOR COMMENT SWITCHED HIS PRUDENTIAL ACCOUNT FROM PRUDENTIAL TO CHARLES SCHWAB CORP IN 1992 9402170137 940217 RALSTON PURINA BUYBACK ST LOUIS RALSTON PURINA CO'S BOARD AUTHORIZED THE BUYBACK OF AS MANY AS THREE MILLION COMMON SHARES OF ITS RALSTON PURINA GROUP STOCK THE AUTHORIZATION ALLOWS THE COMPANY TO MAKE PURCHASES FROM TIME TO TIME AT PREVAILING MARKET PRICES AS DETERMINED BY MANAGEMENT THE COMPANY ALSO SAID THAT ITS PREVIOUS THREE MILLION SHARE BUYBACK PROGRAM AUTHORIZED IN AUGUST 1993 HAS BEEN SUBSTANTIALLY COMPLETED AS OF DEC 31 RALSTON PURINA GROUP HAD 1003 MILLION SHARES OUTSTANDING 9402170136 940217 ALDUS TO PURCHASE COMPUMATION SEATTLE ALDUS CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE COMPUMATION INC A SMALL COMPANY IN STATE COLLEGE PA THAT SELLS PRINT AND IMAGE MANAGEMENT SYSTEMS TO THE GRAPHICARTS INDUSTRY TERMS WILL BE DISCLOSED WHEN THE TRANSACTION IS COMPLETED ALDUS SAID COMPUMATION A CLOSELY HELD COMPANY HAD 1993 REVENUE OF 29 MILLION 9402170135 940217 INTERNATIONAL BLACKS IN SOUTH AFRICA'S NATIONAL PARTY ARE SCORNED FOR SLEEPING WITH THE DEVIL' BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL SOWETO SOUTH AFRICA VRONDA BANDA AND RONALD MASHININI ARE OLD FRIENDS BUT ONE WOULDN'T KNOW THAT FROM THE LESSTHANHEARTY RECEPTION MR BANDA GETS MR MASHININI REFUSES TO SHAKE HIS FRIEND'S HAND THEN HE TELLS MR BANDA YOU'RE ENDANGERING MY LIFE BY COMING HERE YOU'RE ENDANGERING MY PROPERTY YOU'RE EVEN ENDANGERING MY DOG IT'S ALL IN A DAY'S WORK ON THE CAMPAIGN TRAIL FOR MR BANDA IS NO ORDINARY CANDIDATE FOR PARLIAMENT IN THE APRIL ELECTIONS THAT MARK THE ADVENT OF MULTIRACIAL DEMOCRACY IN SOUTH AFRICA MR BANDA IS BLACK AND HE'S RUNNING FOR THE NATIONAL PARTY THE INVENTORS AND ENFORCERS OF APARTHEID THAT A BLACK WOULD RUN FOR THE PARTY THAT LONG PREVENTED BLACKS FROM VOTING IS A SIGN OF THE EXTRAORDINARY CHANGE SOUTH AFRICA HAS UNDERGONE SINCE PRESIDENT FW DE KLERK LEGALIZED THE AFRICAN NATIONAL CONGRESS AND FREED ITS LEADER NELSON MANDELA FOUR YEARS AGO WITH A NEW LOGO AND A MESSAGE OF ATONEMENT FOR PAST SINS THE NATIONAL PARTY IS ACTIVELY COURTING THE BLACK ELECTORATE AND EVEN FIELDING A FEW BLACK CANDIDATES SUCH AS MR BANDA IN HOPES OF REDUCING A LIKELY LANDSLIDE VICTORY FOR MR MANDELA AND THE ANC THE FROSTY RECEPTION MR BANDA GETS HOWEVER IS A SIGN OF HOW DEEP THE CHASM BETWEEN BLACKS AND WHITES REMAINS THE ULTIMATE TEST OF MULTIRACIAL DEMOCRACY WILL BE NOT ONLY WHEN BLACKS CAN VOTE AND SEEK OFFICE BUT ALSO WHEN SOUTH AFRICA'S PARTIES ARE RACIALLY INTEGRATED SO FAR THEIR EFFORTS TO CUT ACROSS COLOR LINES ARE MEETING WITH DISTRUST RESISTANCE AND EVEN VIOLENCE AND INTIMIDATION WHITES WHO SAY THEY WILL VOTE FOR THE ANC ARE REGARDED BY MANY FELLOW WHITES AS DANGEROUS COMMUNISTS OR POWERHUNGRY TURNCOATS BLACKS WHO SAY THEY WILL VOTE FOR THE NATIONAL PARTY BARELY 1 POLLS SHOW ARE VIEWED BY MOST OF THEIR FELLOW BLACKS AS TRAITORS AND OPPORTUNISTS SOMEONE WHO DOES THAT HAS LOST HIS SOUL SAYS MZIMKHULU KWINI A CAPE TOWN LAW STUDENT THAT VIEW MAKES THINGS TRICKY FOR THE 36YEAROLD MR BANDA WHO RUNS THE NATIONAL PARTY'S OFFICE IN SOWETO THE BLACK TOWNSHIP OUTSIDE JOHANNESBURG THAT GAINED FAME AS A FLASHPOINT OF RESISTANCE TO APARTHEID PUT SIMPLY MR BANDA'S PROBLEM IS RIGHT RACE WRONG PARTY IT'S AN INCREDIBLE TASK HE SAYS MR BANDA MAKES AN UNUSUAL NATIONAL PARTY RECRUIT LESS THAN FOUR YEARS AGO HE LIVED IN A CELL IN ROBBEN ISLAND PRISON SERVING A 12YEAR SENTENCE ON CHARGES OF HIGH TREASON FOR HIS ROLE AS A COMMANDER IN UMKHONTO WE SIZWE THE ANC'S MILITARY ARM THE DISMANTLING OF APARTHEID GAINED HIM AN EARLY RELEASE BUT RATHER THAN REJOIN THE RANKS OF MR MANDELA A FORMER FELLOW ROBBEN ISLAND DETAINEE MR BANDA JOINED FORCES WITH HIS EXFOES EXPOSING HIMSELF TO NEW CHARGES OF TREASON IF NOT FROM COURTS AT LEAST FROM MANY OF HIS FRIENDS FAMILY AND OTHER BLACKS HE SPENT YEARS IN JAIL MORE IN DETENTION HE WAS TORTURED AND THEN HE GOES AND JOINS THE ENEMY SAYS A BEWILDERED MR MASHININI WHO ALSO FOUGHT IN THE ANC'S ARMED WING MR BANDA IS UNAPOLOGETIC IT'S NOT HIGH TREASON HE SAYS IT'S FREEDOM OF CHOICE I'M EXERCISING THAT RIGHT THE NATIONAL PARTY I JOINED IS THE NEW NATIONAL PARTY NOT THE ONE THAT PASSED ALL THOSE APARTHEID LAWS MR BANDA DENIES WIDESPREAD ALLEGATIONS THAT HE'S IN THIS FOR MONEY HE SAYS HE JOINED THE NATIONAL PARTY BECAUSE THE ANC IS COMMUNISTDOMINATED AND HAS NO ECONOMIC EXPERTISE WHILE THE NATIONAL PARTY HAS A PROVEN TRACK RECORD ON ECONOMIC POLICY TO GO WITH ITS BORNAGAIN IMAGE THE NATIONAL PARTY HAS DEVELOPED SOUTH AFRICA TO WHAT IT IS TODAY SAYS MR BANDA IT'S BETTER TO SLEEP WITH THE DEVIL WE KNOW SPREADING THAT MESSAGE IN SOWETO ISN'T EASY HOWEVER THE NATIONAL PARTY IS OPERATING UNDERGROUND SAYS ALBE MOROALO WHO WORKS FOR THE ANC IN SOWETO IT'S VERY IRONIC BECAUSE THAT'S HOW THE ANC USED TO OPERATE INDEED MR BANDA RUNS SOMETHING OF A COVERT CAMPAIGN HE OPERATES FROM AN UNMARKED OFFICE IN A SOWETO SHOPPING CENTER RIGHT DOWN THE HALL FROM THE ANC OFFICE IT PROVIDES SECURITY SAYS MR BANDA IF THEY BOMB OUR OFFICE THEY LOSE THEIR OFFICE TOO THE NATIONAL PARTY HAS HELD NO PUBLIC MEETINGS HERE AND MR BANDA RARELY VENTURES OUTSIDE TO CAMPAIGN EXCEPT TO CALL ON PEOPLE HE KNOWS SUCH AS MR MASHININI INSTEAD OF DOORTODOOR CANVASSING MR BANDA QUIETLY IDENTIFIES A FEW KEY PEOPLE IN EACH AREA THEN THEY TRY TO RECRUIT NEIGHBORS AND FORM COMMITTEES THAT ALSO OPERATE UNDERGROUND WHEN THE COMMITTEE EXPANDS TO A SIZE THAT GIVES US BALANCE THEN WE CAN COME OUT HE SAYS COMING OUT CAN BE DANGEROUS AS DAVID CHUENYANE DISCOVERED MR CHUENYANE IS THE MOST PROMINENT BLACK ON THE NATIONAL PARTY'S LIST OF CANDIDATES FOR PARLIAMENT WHICH IS TO BE ELECTED UNDER A SYSTEM OF PROPORTIONAL REPRESENTATION WITH HIS NAME IN SEVENTH PLACE HE'S VIRTUALLY ASSURED OF A PARLIAMENTARY SEAT BUT HIS EFFORTS HAVE EARNED HIM TWO MOLOTOV COCKTAILS EXPLODING ON THE VERANDA OF HIS SOWETO HOME HE HAS BEEN THE TARGET OF SIX DRIVEBY SHOOTINGS AND HE WAS RUN OFF THE ROAD FOUR TIMES I COMPLETELY DAMAGED FOUR CARS HE SAYS HE NOW LIVES IN PRETORIA WHILE HIS AMERICAN WIFE AND THREE CHILDREN ARE IN THE US EVERY NOW AND THEN WHEN THINGS REALLY GET TOUGH I SAY WHAT DID I GET MYSELF INTO' HE ADMITS THE 51YEAROLD MR CHUENYANE A FORMER MILITANT OF THE RADICAL PANAFRICANIST CONGRESS MAKES NO BONES OF THE FACT THAT HE JOINED THE NATIONAL PARTY IN PART OUT OF OPPORTUNISM I HAD TO CONTRIBUTE AND IN ORDER TO CONTRIBUTE EFFECTIVELY I HAD TO LOOK FOR A POLITICAL PARTY I COULD GET INTO AND USE ITS RESOURCES IN ORDER TO HELP MY PEOPLE HE SAYS BUT LIKE MANY OTHER BLACK NATIONAL PARTY SUPPORTERS HE SAYS HE OPPOSES THE ANC BECAUSE HE VIEWS IT AS COMMUNIST AND TRIBALBASED HE SUPPORTS THE NATIONAL PARTY HE SAYS BECAUSE SOUTH AFRICA NEEDS A STRONG OPPOSITION TO ACT AS A WATCHDOG MR CHUENYANE ADMITS THOSE ARGUMENTS GET SHORT SHRIFT IN HIS CAMPAIGN AND HE SPENDS MUCH TIME FIGHTING OFF CHARGES OF SELLING OUT I UNDERSTAND VERY WELL PEOPLE WHO ARE ANGRY AT ME HE SAYS BUT THEIR ANGER IS FROM THE PAST FROM THE INJUSTICES OF APARTHEID IT WAS AN EVIL GOVERNMENT NOW THAT APARTHEID HAS GONE HE SAYS HE FEELS HE CAN DO MORE GOOD BY EDUCATING THE NATIONAL PARTY AND SHOWING THAT BLACKS ARE JUST AS CAPABLE AS WHITES ONE OF THE REASONS I JOINED TOO WAS TO UNDERSTAND WHAT MOTIVATED THEM TO HAVE THAT KIND OF GOVERNMENT AND CHANGE THEM FROM THE INSIDE MR CHUENYANE SAYS 9402170134 940217 ENTERPRISE PENSION PLANS CAN POSE A TRIPLE THREAT TO EMPLOYERS FIRMS RISK MORE RETIREES' SUITS STIFFER IRS STANDARDS PLANNED LEGISLATION BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL FOR SMALL BUSINESSES PLANNING FOR THE SECURITY OF RETIRED WORKERS IS BECOMING AN INCREASING SOURCE OF RISK EMPLOYERS ARE GETTING HIT WITH A TRIPLE THREAT LAWSUITS OVER RETIREMENT BENEFITS ARE RISING AN INFLUENTIAL US SENATOR IS PUSHING FOR A LAW TO LET RETIRED WORKERS SUE FOR EVEN MORE MONEY AND FINALLY THE INTERNAL REVENUE SERVICE HAS JUST ISSUED TOUGH NEW STANDARDS TO ENSURE THAT PENSION PLANS ARE FAIR TO LOWPAID WORKERS HEIGHTENING THE RISK OF STIFF PENALTIES THE MESSAGE TO SMALL BUSINESSES IS BLUNT THIS IS THE YEAR TO FIND YOUR PENSION PLAN PROBLEMS SAYS AN IRS ATTORNEY FAILURE TO FIX THEM MAY BE PAINFUL AND EXPENSIVE ADDS TOM SCHLOSSBERG PRESIDENT OF DIVERSIFIED INVESTMENT ADVISORS INC A PURCHASE NY FIRM THAT HELPS SET UP AND RUN PLANS FOR SMALL AND MEDIUMSIZE COMPANIES SPECIALISTS SAY SMALL FIRMS ARE ESPECIALLY PRONE TO RUNNING AFOUL OF REGULATORS AND PENSIONERS FOR ONE THING THEY ARE MORE LIKELY THAN EXECUTIVES AT BIG CORPORATIONS TO USE THE PLANS AS TAX HAVENS AND BECAUSE THEY LACK THE STAFF AND EXPERTISE OF THEIR CORPORATE COUNTERPARTS THEY ARE MORE LIKELY TO MAKE MISTAKES THAT WILL LEAD TO LITIGATION THESE SPECIALISTS SAY IN FACT NEARLY HALF OF THE SMALL EMPLOYERS THAT CHECK FOR ERRORS FIND THEY MUST ADJUST THEIR PLANS TO COMPLY WITH THE LAW ACCORDING TO A 1992 SURVEY OF SMALL COMPANIES BY A FOSTER HIGGINS A NEW YORK UNIT OF JOHNSON & HIGGINS AND THE LAW IS GETTING TOUGHER THE IRS THIS YEAR LOWERED THE CEILING ON AN EMPLOYEE'S ANNUAL COMPENSATION THAT CAN BE INCLUDED IN A PLAN'S FORMULA TO 150000 FROM 235840 THE REDUCTION FORCES EMPLOYERS TO ADJUST THE AMOUNTS THEY CONTRIBUTE TO THE PLAN FAILURE TO COMPLY WITH SUCH CHANGES CAN FORCE A COMPANY TO REMOVE SOME OF THE MONEY IT HAS PUT INTO THE PLAN AND PAY IT TO THE BENEFICIARIES AS TAXABLE INCOME IF THE PAST IS ANY GUIDE COMPANIES THAT GET THE FIGURES WRONG STAND A STRONG CHANCE OF GETTING CAUGHT THE IRS SAYS IT AUDITED 30000 OR 26 OF THE 11 MILLION RETURNS FILED BY RETIREMENT PLANS IN FISCAL 1992 THAT AUDIT RATE NEARLY TRIPLES THE RATE FOR INDIVIDUAL TAX RETURNS THE AGENCY SAYS WARNING THAT UNCORRECTED PROBLEMS CAN LEAD TO A PLAN'S DISQUALIFICATION THE AGENCY HAS DESIGNED A MODEL PLAN THAT GUARANTEES COMPLIANCE FOR COMPANIES THAT ADOPT IT BUT THERE ARE THOUSANDS OF EMPLOYERS WHO DON'T USE THESE OPTIONS THE IRS ATTORNEY SAYS EVEN THOSE THAT DO CAN RUN INTO PROBLEMS SCIENCE & TECHNOLOGY CORP HAMPTON VA IMPLEMENTED THE MODEL PLAN FOR ITS 175 EMPLOYEES EVEN SO SAYS WAYNE EWING MANAGER OF HUMAN RESOURCES AT THE ENVIRONMENTALSCIENCE RESEARCH AND DEVELOPMENT CONCERN COMPLYING WITH IRS REGULATIONS IS A MAJOR BURDEN AMONG OTHER THINGS HE SAYS HE HAS TO DO ANNUAL REVIEWS OF THE PLAN THE FORMULA IS SO COMPLICATED HE SAYS THAT HE PAID AN OUTSIDE EXPERT 13000 LAST YEAR TO MAKE SURE HE UNDERSTOOD ALL OF THE NUANCES I JUST DON'T HAVE THE TIME TO SPEND UNDERSTANDING EVERY LEGISLATIVE CHANGE THAT COMES DOWN FROM WASHINGTON AND THEY SEEM TO COME DOWN SO OFTEN HE SAYS THE CHANCE A SMALL EMPLOYER WILL END UP IN COURT WITH ITS OWN RETIREES ALSO IS GREATER TODAY THE GROWING LITIGATION THREAT PARTLY RESULTS FROM THE RISING POPULARITY OF SOCALLED DEFINEDCONTRIBUTION PLANS WHICH PARADOXICALLY WERE SUPPOSED TO REDUCE AN EMPLOYER'S LIABILITY WHILE DEFINEDBENEFIT PLANS GUARANTEE THAT A CERTAIN SUM WILL BE PAID TO WORKERS WHEN THEY RETIRE THE PAYOUT OF A DEFINEDCONTRIBUTION PLAN DEPENDS LARGELY ON PARTICIPANTS' OWN INVESTMENT DECISIONS UNDER A FEDERAL REGULATION THAT TOOK EFFECT LAST YEAR EMPLOYERS ARE ENCOURAGED TO PROVIDE WORKERS WITH A SUFFICIENT RANGE OF INVESTMENT OPTIONS FAIR ACCESS TO THEM AND ADEQUATE INFORMATION ABOUT THEIR RISKS SAYS MANUEL SOARES A FOSTER HIGGINS EMPLOYEEBENEFITS CONSULTANT AS THE ACCOUNT BALANCES OF SUCH PLANS GROW DISPUTES OVER WHETHER EMPLOYERS FULFILLED THAT OBLIGATION ARE LIKELY TO INCREASE TOO HE SAYS ESPECIALLY AT SMALLER CONCERNS THAT LACK THE EXPERTISE OF LARGER COMPANIES WE'RE HEARING MORE PEOPLE COMPLAIN ABOUT THEIR PENSIONPLAN INVESTMENT RETURNS HE ADDS PEOPLE ARE BEGINNING TO FEEL LIKE THEY SHOULD BE GETTING MORE THE PENSIONERRIGHTS MOVEMENT ALSO IS MAKING LEGAL CONFLICTS MORE LIKELY THE US ADMINISTRATION ON AGING LATE LAST YEAR FUNDED SEVEN PENSION HOTLINES THROUGHOUT THE COUNTRY THE HOTLINES ADVISE RETIREES WITH PENSION AND OTHER FRINGEBENEFIT PROBLEMS AND REFER THEM TO ATTORNEYS AND OTHER EXPERTS MANY PEOPLE ARE UNFAIRLY AND IMPROPERLY DENIED BENEFITS OR ARE GETTING SMALLER PENSION BENEFITS THAN THEY SHOULD BE GETTING SAYS EDGAR PAUK THE NEW YORK HOTLINE'S DIRECTOR AND A LAWYER AT THE NONPROFIT LEGAL SERVICES FOR THE ELDERLY IN NEW YORK I EXPECT THERE WILL BE MORE CLAIMS AS MORE PEOPLE ARE EDUCATED RETIREMENTRELATED LAWSUITS ALREADY ARE ON THE RISE THE NUMBER OF FEDERAL SUITS FILED UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT GREW 35 FROM 1989 THROUGH 1993 TO 10536 ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS DESPITE THE INCREASE PENSIONER ADVOCATES SAY US SUPREME COURT RULINGS IN RECENT YEARS HAVE SEVERELY LIMITED THE CHANCE THAT PLAN PARTICIPANTS WILL WIN IN COURT BUT THAT MAY SOON CHANGE WITHIN A MONTH SEN HOWARD METZENBAUM D OHIO PLANS TO INTRODUCE LEGISLATION THAT AN AIDE CALLS THE PENSION BILL OF RIGHTS THE 10POINT PROPOSAL WILL IMPROVE PENSIONERS' LEGAL STANDING THE AIDE SAYS AMONG OTHER THINGS IT WILL PERMIT PLAN PARTICIPANTS TO SUE FOR MORE THAN ONLY BACK BENEFITS CURRENT LAW MAKES IT DIFFICULT TO SEEK PUNITIVE DAMAGES SHE SAYS MR METZENBAUM SHE ADDS WANTS TO TAKE THE PENSION SYSTEM WE HAVE AND ELIMINATE THE WORST ABUSES AND LOOPHOLES THAT MAKE THE SYSTEM UNFAIR TO WORKERS 9402170133 940217 MARKETING & MEDIA ON THE SKATING BEAT CBS'S TV RIVALS ARE OUT IN THE COLD OLYMPICS' TERMS LIMIT ACCESS BY OTHERS AMID A TALE OF TRIPLE AXELS TIRE IRONS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR THE 295 MILLION IT PAID FOR THE WINTER OLYMPICS CBS INC BOUGHT NOT ONLY TELEVISION RIGHTS TO THE SPORTING EVENTS BUT ALSO THE RIGHT TO KEEP COMPETING NEWS ORGANIZATIONS' TV CAMERAS AWAY FROM EMBATTLED FIGURE SKATER TONYA HARDING NEWS EVENT OR NOT CBS HAS EXCLUSIVE ACCESS TO GATHER ALL VIDEO FROM THE OFFICIAL OLYMPIC VENUES WHERE PRACTICE AND COMPETITION TAKES PLACE THAT INCLUDES THE ARENA WHERE MS HARDING AND RIVAL NANCY KERRIGAN ARE EXPECTED TO PRACTICE TOGETHER THIS MORNING AN EVENT THAT CBS EXPECTS TO AIR LIVE ON CBS THIS MORNING I HATE IT IT'S AN AWFUL WAY TO DO NEWS SAYS ED TURNER EXECUTIVE VICE PRESIDENT OF TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK WHICH HAS SEVERAL EMPLOYEES ON SITE IN LILLEHAMMER NORWAY WAITING FOR A STORY TO BREAK IT'S NOT ENTERPRISE OR SMARTS HE SAYS IT'S JUST MONEY CNN AND OTHER TELEVISION ORGANIZATIONS MAY SEND REPORTERS AND STILL PHOTOGRAPHERS INTO THE OFFICIAL ARENAS BUT NOT VIDEO CAMERAS THE BLACKOUT EVEN APPLIES TO KING WORLD PRODUCTIONS INC'S SYNDICATED NEWSMAGAZINE INSIDE EDITION WHICH PAID SEVERAL HUNDRED THOUSAND DOLLARS FOR A SERIES OF EXCLUSIVE INTERVIEWS WITH MS HARDING OVER THE NEXT SEVERAL MONTHS CBS'S EXCLUSIVITY DOESN'T APPLY TO THE STREETS OF LILLEHAMMER OR TO THE OLYMPIC VILLAGE WHERE ATHLETES STAY SEVERAL NEWS ORGANIZATIONS INCLUDING CAPITAL CITIES/ABC INC SAID THEY WOULD TAKE ADVANTAGE OF ACCESS TO THE SKATERS THERE ALTHOUGH CNN'S MR TURNER SAID THE ATHLETES ARE CLOSELY PROTECTED AN NBC NEWS SPOKESWOMAN SAID THE GENERAL ELECTRIC CO UNIT WOULD USE STILL COLOR PHOTOS TAKEN INSIDE THE OFFICIAL VENUES IF NEEDED TELEVISION ORGANIZATIONS MAY ALSO USE EXCERPTS OF CBS FOOTAGE AFTER A SEVERALHOUR DELAY BUT WITH NUMEROUS RESTRICTIONS 9402170132 940217 BOEING MCDONNELL MAY FACE SPARRING OVER MAKEUP OF 6 BILLION SAUDI ORDER BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO AND MCDONNELL DOUGLAS CORP HAVING BEATEN OUT THEIR BIG EUROPEAN COMPETITOR FOR YESTERDAY'S 6 BILLION AIRLINER ORDER FROM SAUDI ARABIA MAY STILL FACE A HARD ROUND OF COMPETITION OVER THE MIX OF AIRCRAFT TO BE DELIVERED DETAILS ABOUT THE LONGAWAITED ORDER WERE SCARCE AT A WHITE HOUSE NEWS CONFERENCE DURING WHICH PRESIDENT CLINTON CALLED THE PURCHASE BY THE STATEOWNED AIRLINE SAUDIA A GOLDMEDAL WIN FOR AMERICA'S BUSINESSES AND WORKERS SAUDIA EXPECTS TO REPLACE ALL OF ITS ABOUT 50 PLANES WITH JETLINERS FROM THE TWO US MANUFACTURERS THUS EXCLUDING EUROPE'S AIRBUS INDUSTRIE CONSORTIUM FROM ITS NEW FLEET DESPITE THE PRESIDENT'S CONTENTION THAT THE ORDER FOR US MANUFACTURERS REFLECTS A NATIONAL STRATEGY THAT ENCOURAGES INDUSTRY TO CREATE GOOD HIGHPAYING JOBS IN AMERICA THE COMPANIES SOUGHT TO SOFTEN ANY SUGGESTION THAT PRODUCING PLANES FOR THE SAUDIS WILL EXPAND THEIR WORK FORCES IN THE PAST FEW YEARS OF SHARP DOWNTURNS IN GLOBAL NEWPLANE ORDERS FROM AIRLINES BOTH BOEING AND MCDONNELL DOUGLAS HAVE BEEN REDUCING EMPLOYMENT SIGNIFICANTLY AT THE NEWS CONFERENCE BOEING CHAIRMAN FRANK SHRONTZ SAID THE SAUDI ORDER IS CERTAINLY GOING TO HELP STABILIZE THE EMPLOYMENT LEVELS AT MCDONNELL DOUGLAS AND BOEING AT WHAT IS A VERY CRITICAL TIME FOR BOTH OF US PEOPLE FAMILIAR WITH THE ARRANGEMENTS HAVE SAID THE ORDER'S FINAL SIZE IS EXPECTED TO BE BETWEEN 60 AND 66 AIRCRAFT WITH ABOUT 60 OF THE TOTAL VALUE GOING TO SEATTLEBASED BOEING AND THE REMAINDER TO ST LOUISBASED MCDONNELL DOUGLAS DISCUSSIONS HAVE INVOLVED ABOUT 25 MD90 AIRCRAFT AND A SUBSTANTIAL NUMBER OF MD11 WIDEBODY JETS FROM MCDONNELL DOUGLAS WITH BOEING PROVIDING AT LEAST 10 OF ITS 747 JUMBO JETS AND A COMBINATION OF TWINENGINE PLANES INCLUDING ITS NEW 777 OR ESTABLISHED 767 AND 757 MODELS SUGGESTIONS THAT BOEING AND MCDONNELL DOUGLAS WILL STILL HAVE TO FIGHT EACH OTHER FOR ORDERS HOWEVER CAME IN THE ANNOUNCEMENT BY PRINCE BANDAR BIN SULTAN SAUDI ARABIA'S US AMBASSADOR THE PRINCE SAID THE TWO COMPANIES HAD BEEN INVITED TO A MARCH 20 SESSION IN HIS COUNTRY TO NEGOTIATE PRICES FINANCING AND DELIVERY SCHEDULES BOEING'S SMALLER 737 JETLINERS COMPETE HEADON WITH THE MD90S FOR EXAMPLE THE ENVIRONMENT BETWEEN THE TWO COMPANIES REMAINS HIGHLY COMPETITIVE AND THE SAUDI ORDER IS LIKELY TO BE THE LARGEST THAT ANY OF THE WORLD'S AIRCRAFT PRODUCERS WILL RECEIVE UNTIL AT LEAST LATE 1995 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BOEING SHARES JUMPED 2125 TO 4650 AND MCDONNELL DOUGLAS SHARES ROSE 1875 TO 118875 IN THE AIRBUS CAMP THE SAUDI DECISION LEFT SOME DISAPPOINTED MANAGERS ASSESSING THE ODDS THAT AIRBUS MIGHT STILL SNEAK IN TO WIN ORDERS FOR THEIR OWN TWINENGINE PLANES ESPECIALLY IF THE BOEING AND MCDONNELL DOUGLAS COMPETITION FOR SMALLER PLANES TURNS BITTER AT THE NEWS CONFERENCE PRESIDENT CLINTON COMPARED US EFFORTS HELPING THE AMERICAN AEROSPACE COMPANIES WIN THE SAUDI BUSINESS TO HIS ADMINISTRATION'S WORK ON BEHALF OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND OTHER INTERNATIONAL TRADE PACTS COMMERCE SECRETARY RON BROWN ESTIMATED THAT THE SAUDI ORDER TO BE FINANCED BY THE US EXPORTIMPORT BANK MIGHT RESULT IN 100000 AMERICANS' BEING HIRED OR RETAINED BY AEROSPACE COMPANIES HE SAID HE WAS REASONING THAT EACH BILLIONDOLLAR INCREASE IN EXPORTS EQUATES TO ABOUT 20000 JOBS FOR AMERICANS BOEING'S MR SHRONTZ WHILE MENTIONING ONLY THE ORDER'S IMPACT ON WORKFORCE STABILIZATION THANKED PRESIDENT CLINTON FOR HELPING TO COMMUNICATE TO OUR CUSTOMERS THE IMPORTANCE OF THIS TRANSACTION AND OUR HOPE THAT THE DECISION WOULD BE MADE ON THE BASIS OF PRODUCT MERIT MCDONNELL DOUGLAS CHAIRMAN JOHN MCDONNELL SAID THE SAUDI ORDER REFLECTS WHAT WE CAN ACCOMPLISH AS A NATION IF WE PULL TOGETHER AS A TEAM WITH THE SUPPORT OF AN ENERGETIC ADMINISTRATION TO ACHIEVE THREE CRITICAL OBJECTIVES SALES FOR AMERICAN COMPANIES EXPORTS OF US PRODUCTS TO OUR FRIENDS AROUND THE WORLD AND JOBS FOR AMERICANS FOR MCDONNELL DOUGLAS ESPECIALLY ORDERS ARE NEEDED TO HELP BOLSTER ITS SAGGING JETLINER PRODUCTION FACILITIES IN LONG BEACH CALIF WHERE ONLY THREE TO FOUR PLANES ARE EXPECTED TO BE DELIVERED IN THE CURRENT QUARTER 9402170131 940217 INTERNATIONAL EU PENALIZES 16 STEEL FIRMS OVER PRICING BRITISH STEEL OTHERS FINED TOTAL OF 1167 MILLION COLLABORATION CHARGED BY CHARLES GOLDSMITH AND MARTIN DU BOIS STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN UNION COMMISSION IMPOSED FINES TOTALING 104 MILLION EUROPEAN CURRENCY UNITS 1167 MILLION AGAINST 16 STEEL COMPANIES SAYING THEY WERE ENGAGED IN MASSIVE PRICE FIXING AND COLLABORATION IN THE MARKET FOR STEEL BEAMS THE HEAVIEST FINES WERE ISSUED AGAINST BRITISH STEEL PLC WITH 32 MILLION ECUS THE UNIMETAL SA DIVISION OF FRANCE'S USINOR SACILOR WITH 123 MILLION ECUS AND ARBED SA OF LUXEMBOURG WITH 112 MILLION ECUS BRITISH STEEL AND USINOR BOTH INDICATED THEY EXPECT TO APPEAL THE FINES TO THE EUROPEAN COURT OF JUSTICE WE'RE RATHER SURPRISED BY THE PRINCIPLE AS WELL AS THE OVERALL SIZE OF THE FINES SAID JEANYVES GILET DIRECTOR OF STRATEGY AND INTERNATIONAL AFFAIRS AT USINOR EUROPE'S LARGEST STEELMAKER WE CONTEST THE LOGIC OF ALL THIS SOME INDUSTRY OFFICIALS SAID PRIVATELY THEY WERE OUTRAGED BY THE DECISION THE COMMISSION HOWEVER SAID THE COMPANIES' ALLEGEDLY ANTICOMPETITIVE BEHAVIOR WARRANTED THE BIG FINES THIS WAS A SITUATION WHERE EVERYTHING THAT COULD BE INFRINGED WAS INFRINGED BY THESE COMPANIES SAID THE EUROPEAN UNION'S COMPETITION COMMISSIONER KAREL VAN MIERT WE HAD TO BE TOUGH ONE ELEMENT OF THE CARTEL HE SAID INVOLVED RESTRICTING THE FLOW OF INFORMATION ON THE STEEL SECTOR IN ORDER TO FREEZE OUT ANY NEW COMPETITORS THE COMMISSION'S RECORD FINE TO A SINGLE COMPANY IS A 75 MILLIONECU LEVY AGAINST THE SWEDISHOWNED PACKAGING CONCERN TETRA PAK IN 1991 COLLECTIVELY HOWEVER THE FINES ANNOUNCED YESTERDAY REPRESENT THE LARGEST PENALTY EVER IMPOSED UNDER EU COMPETITION LAW THE FINES HOWEVER WILL DO LITTLE TO RESOLVE A DEADLOCK BETWEEN THE COMMISSION AND MUCH OF EUROPE'S STEEL INDUSTRY OVER THE NEED FOR CUTBACKS IN EU STEEL OUTPUT BOTH SIDES FAILED TO PUT FORTH ANY NEW IDEAS DURING A DINNER MEETING IN BRUSSELS TUESDAY THEY'VE AGREED TO MEET AGAIN IN LATE MARCH UNSUBSIDIZED STEELMAKERS COMPLAIN THAT THE SUBSIDIES THE EU APPROVED IN DECEMBER FOR STATEOWNED STEELMAKERS IN GERMANY ITALY SPAIN AND PORTUGAL ARE DISTORTING THE MARKET THE COMMISSION REPRESENTED BY MR VAN MIERT AND FELLOW INDUSTRY COMMISSIONER MARTIN BANGEMANN PRESSED THE UNSUBSIDIZED PRODUCERS TO CUT BACK LAMINATING CAPACITY IN THE FLATPRODUCTS SECTOR BY SEVERAL MORE MILLION TONS THAN ALREADY REALIZED OR PLEDGED BUT MANY STEELMAKERS ARE RELUCTANT TO SHUT DOWN MILLS AT A TIME THE MARKET LOOKS AS IF IT'S ABOUT TO REBOUND SOME STEEL EXECUTIVES SAY THEY SEE A CONTRADICTION IN THE EU'S POLICY WHICH THEY SAY DISTORTS FAIR COMPETITION BY SUBSIDIZING SOME PRODUCERS WHILE FINING OTHERS FOR ALLEGEDLY BREACHING COMPETITION LAW THE COMMISSION MUST REASSURE UNSUBSIDIZED STEELMAKERS THAT THEY MEAN WHAT THEY SAY IN PLEDGING TO BLOCK ANY NEW SUBSIDIES THEN THEY'LL GET COOPERATION AND PROGRESS SAID ONE INDUSTRY OFFICIAL 9402170129 940217 TEJAS GAS EXPANSION HOUSTON TEJAS GAS CORP SAID A SUBSIDIARY WILL BUILD AN 85MILE 24INCHDIAMETER GAS PIPELINE IN TEXAS CONSTRUCTION COSTS WEREN'T DISCLOSED A SPOKESWOMAN FOR TEJAS A NATURALGAS PIPELINE COMPANY SAID IT HASN'T YET ANNOUNCED WHICH UNIT WILL BUILD THE PIPELINE TEJAS PLANS TO HAVE THE PIPELINE OPERATING BY THIS SUMMER THE PIPELINE WILL CONNECT TEJAS'S GASGATHERING SYSTEM SOUTHEAST OF LAREDO TEXAS TO A UNIT'S SYSTEM SOUTHWEST OF CORPUS CHRISTI TEXAS TEJAS OPERATES MORE THAN 5200 MILES OF PIPELINE IN THE US 9402170128 940217 CREDIT MARKETS WALT DISNEY TO SELL NOTES TIED TO FILMS' RESULTS WITH INITIAL YIELD LINKED TO US 7YEAR ISSUE BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR INVESTORS INTERESTED IN UNUSUAL OPPORTUNITIES THERE'S NO NEED TO LOOK FURTHER THAN THE LOCAL MOVIE THEATER THAT'S BECAUSE WALT DISNEY CO IS SELLING 400 MILLION OF NOTES WHOSE YIELD WILL BE LINKED TO THE PERFORMANCE OF SOME OF ITS FILMS ACCORDING TO OFFICIALS INVOLVED IN THE PRIVATE PLACEMENT OFFERING IT'S NOT THE FIRST TIME THAT DISNEY HAS SOLD SUCH NOTES THEY OFFERED SIMILAR SECURITIES IN LATE 1992 BUT FOR INVESTORS WHO ARE SICK OF TODAY'S LOW YIELDS AMONG MOST OTHER HIGHRATED CORPORATE AND GOVERNMENT SECURITIES THE NEW OFFERING MAY BE AN ATTRACTIVE BET YESTERDAY THE BENCHMARK 30YEAR US TREASURY BOND YIELDED 646 UP FROM 645 ON TUESDAY THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE YIELD DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 97 5/32 THE DISNEY NOTES WILL HAVE A MINIMUM COUPON EXPECTED TO BE TWO PERCENTAGE POINTS BELOW THE YIELD OF THE SEVENYEAR US TREASURY NOTE ACCORDING TO PEOPLE INVOLVED IN THE OFFERING THE SEVENYEAR TREASURY NOTE YIELDED 548 YESTERDAY THE COUPON CAN INCREASE HOWEVER BASED UPON THE PERFORMANCE OF THE COMPANY'S NEXT SERIES OF ABOUT 20 NONANIMATED MOVIES THE COMPANY OFFICIAL SAID DISNEY OFFICIALS WOULDN'T SAY WHAT THE MAXIMUM COUPON COULD BE BUT WHEN DISNEY DID A SIMILAR OFFERING IN LATE 1992 THE TOP POTENTIAL YIELD ON THE NOTES WAS AS HIGH AS 135 THE NOTES WILL BE SOLD IN LONDON THROUGH CITIBANK INTERNATIONAL PLC AND CS FIRST BOSTON LTD THE NOTES WILL BE TRADABLE IN US AND EUROPEAN BOND MARKETS THE SALE IS EXPECTED SOMETIME DURING THE WEEK OF FEB 28 THE ISSUE IS EXPECTED TO BE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP ESSENTIALLY THE OFFERING IS A NIFTY FORM OF MOVIEMAKING RISK MANAGEMENT WHEREBY PART OF THE COSTS OF FILMS THAT FLOP WOULD BE BORNE BY INVESTORS IN THE FORM OF COUPONS FAR BELOW PREVAILING INTEREST RATES BUT IF THE MOVIES TO BE INCLUDED IN THE DEAL ARE BIG SUCCESSES INVESTORS WILL COLLECT COUPONS FAR ABOVE PREVAILING INTEREST RATES SINCE THE DEAL WILL BE A PRIVATE PLACEMENT IT IS LIMITED TO LARGE INSTITUTIONAL INVESTORS MEANWHILE FEDERAL AGENCIES AND CORPORATIONS SOLD MORE THAN 44 BILLION OF BONDS YESTERDAY THE FEDERAL FARM CREDIT BANKS SYSTEM WHICH PROVIDES CREDIT SERVICES TO FARMERS AND FARMRELATED ENTERPRISES SOLD 106 BILLION OF ONEYEAR NOTES IN ITS LARGEST EVER UNDERWRITTEN DEBT OFFERING THE DEAL WAS PRICED WITH A YIELD EQUAL TO ONEYEAR TREASURY BILLS WHICH IS 005 TO 010 PERCENTAGE POINT BELOW TRADITIONAL MARKET LEVELS SAID JAMES BRICKLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FEDERAL FARM CREDIT BANKS FUNDING CORP THE ONEYEAR BILLS WERE PRICED AT PAR TO YIELD 383 IN THE US TREASURY MARKET PRICES WERE UNCHANGED TO SLIGHTLY LOWER THE 10YEAR NOTE FOR EXAMPLE DROPPED 1/8 POINT TO 99 25/32 TO YIELD 589 UP FROM 587 ON TUESDAY IN THE ABSENCE OF ANY MARKETMOVING NEWS PRICES REMAINED WITHIN THE WELLDEFINED RANGES THAT HAVE HELD FOR MORE THAN A WEEK THE SESSION'S ONLY MAJOR ECONOMIC REPORT PROVED TO BE ANOTHER IN A STRING OF REPORTS DISTORTED BY THE UNSEASONABLY HARSH WINTER WEATHER THE COMMERCE DEPARTMENT REPORTED HOUSING STARTS PLUNGED 176 TO A 1294 MILLIONUNIT ANNUAL RATE ANALYSTS SAID OTHER EVIDENCE SUCH AS MORTGAGE APPLICATIONS STILL POINTS TO UNDERLYING STRENGTH IN THE HOUSING SECTOR THE PROBLEM FOR THE BOND MARKET TRADERS SAID IS THAT INSTITUTIONAL INVESTORS HAVE BEEN UNWILLING TO EMERGE FROM THE BUNKERS THEY ENTERED WHEN THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES EARLIER THIS MONTH AND AFTER A WEEK OF BACKANDFORTH TRADING EVEN SPECULATIVE ACCOUNTS HAVE PULLED OUT OF THE FRAY MANY INVESTORS ARE WAITING ON MORE NEWS ABOUT INFLATION BEFORE MAKING A MOVE BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN SOME OF THE INFLATION NEWS SHOULD COME TODAY WHEN THE GOVERNMENT RELEASES JANUARY'S REPORT ON THE CONSUMER PRICE INDEX AN IMPORTANT MEASURE OF INFLATION TRADERS HOPE THAT ONCE THE CPI REPORT IS OUT OF THE WAY INVESTORS WILL BECOME ACTIVE AGAIN FORECASTS FOR THE CPI CENTER ON A 03 INCREASE IN THE PAST TRADERS AND INVESTORS HAVE WORRIED ABOUT UNUSUALLY LARGE GAINS IN THE CPI DURING THE EARLY PART OF THE YEAR DUE TO SEASONAL FACTORS NOW THEY ARE HOPING THAT CHANGES TO THE CPI'S SEASONAL ADJUSTMENT PROCESS ANNOUNCED BY THE BUREAU OF LABOR STATISTICS ON TUESDAY WILL REDUCE THE CHANCE OF A LARGERTHANANTICIPATED JUMP IN THE CPI EXPECTATIONS FOR A RELATIVELY BENIGN INFLATION NUMBER HAVE INCREASED SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO THE RISK FOR THE MARKET IS THAT IF THE CPI COMES IN HIGHER THAN EXPECTED IT WILL BE VIEWED AS EVEN MORE OF A PROBLEM THAN BEFORE MR LIRO ADDED IF WE GET A NUMBER ABOVE EXPECTATIONS IT'S GOING TO BE A BIGGER PROBLEM THAN IT WOULD HAVE BEEN BEFORE THE REVISIONS TO THE SEASONALS MR LIRO SAID THE ONLY OTHER EVENT OF NOTE YESTERDAY WAS THE TREASURY DEPARTMENT'S ANNOUNCEMENT THAT IT WILL SELL 17 BILLION OF TWOYEAR NOTES NEXT WEDNESDAY AND 11 BILLION OF FIVEYEAR NOTES NEXT THURSDAY IN WHENISSUED TRADING LATE IN THE SESSION THE TWOYEAR NOTE YIELDED 447 AND THE FIVEYEAR NOTE YIELDED 538 THE MUNICIPAL BOND MARKET SAW BRISK NEW ISSUANCE THAT TOTALED ABOUT 1 BILLION AND INCLUDED ISSUES FROM THE CHICAGO SCHOOL FINANCE AUTHORITY AND THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP HOWEVER MUNIS BARELY BUDGED IN SECONDARY TRADING THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS OF 2018 BONDS CLOSED UNCHANGED AT 97 3/4 TO YIELD 540 AS FOR THE NEW ISSUES A LEHMAN BROTHERS INC GROUP WON THE CHICAGO SCHOOL FINANCE AUTHORITY'S 410 MILLION OF SERIES 1994A BONDS FOR SCHOOLIMPROVEMENT FINANCING WITH A BID SETTING THE TRUE INTEREST COST AT 49476 YIELDS FOR REOFFERED BONDS RANGE FROM 390 IN 1997 TO 530 IN 2009 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEGOTIATED OFFERINGS INCLUDED THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP'S 1489 MILLION OF SERIES 1994A BONDS WHICH WERE SOLD VIA A WR LAZARD LAIDLAW & MEAD INC GROUP LGAC IS A PUBLICBENEFIT CORPORATION OF NEW YORK STATE FOLLOWING A REPRICING AT WHICH A NUMBER OF YIELDS WERE LOWERED 002 TO 005 PERCENTAGE POINT DUE TO STRONG DEMAND YIELDS RANGE FROM 300 IN 1995 TO 560 IN 2023 MOODY'S AND S&P HAVE RATED THE BONDS SINGLEA WHILE FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAPLUS RATING PRICES OF MORTGAGE SECURITIES ENDED LOWER IN THIN TRADING IN SECONDARY TRADING THE 65 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FOR MARCH DELIVERY ENDED 5/32 LOWER AT 98 27/32 AMONG OTHER 65 ISSUES FOR MARCH DELIVERY FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES BOTH ENDED 7/32 LOWER AT 98 30/32 AND 98 24/32 RESPECTIVELY THE INABILITY OF THE DEBT MARKETS TO BREAK OUT OF RANGES HAS FRUSTRATED DEALERS AS WELL AS CUSTOMERS OUTSIDE THE WALL STREET COMMUNITY UNTIL RATES BUDGE NO ONE CAN STAKE OUT NEW STRATEGIES BEFORE THE MARKET STALLED LAST WEEK SOME INSTITUTIONAL INVESTORS HAD BEEN INCREASING THEIR PORTFOLIO HOLDINGS IN MORTGAGES BUT IF TODAY'S REPORT ON CONSUMER PRICES OR SOME OTHER INFLATIONSENSITIVE NUMBERS COME IN WELL BELOW EXPECTATIONS THAT COULD SEND RATES LOWER AND WHEN RATES ARE FALLING MORTGAGES TEND TO LAG BEHIND TREASURYS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9402170126 940217 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/8 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 59 DAYS 342 60 TO 89 DAYS 347 90 TO 119 DAYS 350 120 TO 149 DAYS 353 150 TO 179 DAYS 358 180 TO 239 DAYS 365 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 348 30 DAYS 350 60 DAYS 355 90 DAYS CERTIFICATES OF DEPOSIT 274 ONE MONTH 277 TWO MONTHS 284 THREE MONTHS 303 SIX MONTHS 335 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 333 ONE MONTH 344 THREE MONTHS 361 SIX MONTHS BANKERS ACCEPTANCES 332 30 DAYS 337 60 DAYS 340 90 DAYS 345 120 DAYS 350 150 DAYS 355 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/16 3 5/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 9/16 3 7/16 THREE MONTHS 3 5/8 3 1/2 FOUR MONTHS 3 11/16 3 9/16 FIVE MONTHS 3 3/4 3 5/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 9/16 THREE MONTHS 3 3/4 SIX MONTHS 4 1/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 593 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 14 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 328 13 WEEKS 343 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 708 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 703 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402170125 940217 TECHNOLOGY IBM RESHUFFLES MANAGERS AT UNIT FOR PCS IN EUROPE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INTERNATIONAL BUSINESS MACHINES CORP REORGANIZED THE MANAGEMENT OF ITS EUROPEAN PERSONALCOMPUTER BUSINESS IN AN EFFORT TO CUT COSTS AND INCREASE EFFICIENCY THE MANAGEMENT CHANGES WHICH TOOK EFFECT A FEW WEEKS AGO BUT WEREN'T ANNOUNCED PUBLICLY ELIMINATED FOUR JOBS AT THE TOP OF IBM'S EUROPEAN PC UNIT THE BIGGEST PC MAKER IN EUROPE WITH ANNUAL REVENUE ESTIMATED TO EXCEED 25 BILLION SOME OF THE EXECUTIVES INVOLVED MOVED TO JOBS ELSEWHERE WITH IBM THE NET EFFECT SAID HOWARD FORD THE PC UNIT'S MARKETING MANAGER WAS TO CUT OUT TWO LAYERS OF MANAGEMENT IN THE EUROPEAN PC BUSINESS THE PC UNIT'S TOP SUPERVISOR WILLIAM MCCRACKEN 51 YEARS OLD REMAINS PRESIDENT OF PC OPERATIONS FOR EUROPE THE MIDDLE EAST AFRICA AND THE ASIA/PACIFIC REGION BUT HIS DEPUTY IN EUROPE GENERAL MANAGER GIUSEPPE GIULIANI 45 WAS NAMED TO A SENIOR JOB IN IBM'S ITALIAN SUBSIDIARY RUNNING THE MARKETING AND COMPUTERSERVICES DIVISION FOR ALL PRODUCTS EXCEPT PCS MR MCCRACKEN WILL DO BOTH HIS OWN JOB AND MR GIULIANI'S OLD JOB MEANWHILE THREE OF MR GIULIANI'S LIEUTENANTS WERE REASSIGNED AND THEIR OLD POSTS ELIMINATED THE THREE MR FORD IRWIN STAUDT AND JEANCLAUDE MALRAISON WERE REGIONAL MARKETING MANAGERS FOR NORTHERN EASTERN AND SOUTHERN EUROPE RESPECTIVELY MR FORD WAS NAMED TO A NEW POST OF PC MARKETING MANAGER FOR ALL OF EUROPE REPORTING TO MR MCCRACKEN MR STAUDT MOVED TO IBMGERMANY TO RUN MARKETING FOR NONPC PRODUCTS AND SERVICES MR MALRAISON WAS NAMED HEAD OF IBM'S EUROPEAN COMPUTERWORKSTATION BUSINESS MARKETRESEARCH CONCERN DATAQUEST INC ESTIMATES IBM'S SHARE OF THE EUROPEAN PC MARKET SLIPPED TO 147 IN THE FOURTH QUARTER COMPARED WITH 155 A YEAR EARLIER DATAQUEST ESTIMATES THAT OVERALL IN 1993 IBM GAINED 09 PERCENTAGE POINTS OF EUROPEAN PC MARKET SHARE TO 133 9402170124 940217 ENICHEM CAPITAL INJECTIONS ARE SUBJECT OF EU PROBE SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN UNION COMMISSION OPENED AN INQUIRY INTO TWO CAPITAL INJECTIONS VALUED AT 940 MILLION EUROPEAN CURRENCY UNITS 105 BILLION FROM ITALIAN STATE ENERGY HOLDING COMPANY ENTE NAZIONALE IDROCARBURI TO ITS CHEMICAL UNIT ENICHEM SPA THE COMMISSION SAID IT HASN'T RECEIVED DETAILS OF A RESTRUCTURING PLAN FOR THE COMPANY THAT IS BEING PREPARED BY THE ITALIAN AUTHORITIES THE EU'S EXECUTIVE BODY MUST EXAMINE THE PLAN TO ENSURE THAT THE SUBSIDIES WILL BE USED TO RETURN ENICHEM TO VIABILITY AND ALSO TO ENSURE THAT THEY WON'T DAMAGE COMPETITION IN THE EU THE COMMISSION SAID THAT GIVEN THE LEVEL OF INTRACOMMUNITY TRADE IN CHEMICALS AND THE CURRENT RECESSION THE CAPITAL INJECTIONS APPEAR TO DISTORT TRADE AND THEREFORE TO BE INCOMPATIBLE WITH EU COMPETITION RULES SEPARATELY THE COMMISSION SAID IT ALSO WILL PROBE A 670 MILLION ECU SUBSIDY PAID BY ENI TO FERTILIZER COMPANY ENICHEM AGRICOLTURA IT SAID IT NEEDS MORE DETAILS OF ENI'S GLOBAL RESTRUCTURING PLAN BEFORE RULING WHETHER THE CAPITAL INJECTIONS MADE BETWEEN 1991 AND 1993 ARE IN LINE WITH EU SUBSIDY RULES HOWEVER IT DID SAY THE CAPITAL INJECTIONS APPEAR TO DAMAGE EU TRADE 9402170123 940217 DEAN FOODS' DAIRYMEN TALKS FRANKLIN PARK ILL DEAN FOODS CO SAID IT HAS TERMINATED TALKS WITH DAIRYMEN INC OF LOUISVILLE KY REGARDING THE ACQUISITION OF ITS FLAVORICH FLUID MILK AND ICE CREAM OPERATIONS DEAN WHICH HAS OPERATIONS IN DAIRY AND OTHER FOOD LINES WOULDN'T SAY WHY THE NEGOTIATIONS ENDED BUT SAID THE ACTION WAS OUR DECISION LAST JUNE DEAN DISCLOSED ITS INTEREST IN FLAVORICH HOPING TO BOOST ITS PRESENCE IN THE GROWING SOUTHEASTERN MARKET FLAVORICH OPERATES NINE MILK PLANTS AND TWO ICE CREAM PLANTS IN THE SOUTHEAST AND HAD 1992 SALES OF 400 MILLION 9402170122 940217 POLITICS & POLICY CABLE INDUSTRY LOBBIES FCC SAYING RATE CUTS WOULD THREATEN THE INFORMATION SUPERHIGHWAY BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CABLE INDUSTRY EXECUTIVES HAVE BEEN STREAMING INTO WASHINGTON IN THE LAST FEW WEEKS WITH A BLUNT MESSAGE LOWER CABLE TELEVISION RATES WOULD PUT A ROADBLOCK IN THE INFORMATION SUPERHIGHWAY THEIR TARGET IS THE FEDERAL COMMUNICATIONS COMMISSION WHICH IS SCHEDULED NEXT TUESDAY TO TAKE UP THE ISSUE OF WHETHER TO SEEK FURTHER CUTS IN CABLE RATES COMMISSION MEMBERS HAVE LEANED TOWARD FURTHER RATE CUTS WORRIED THAT THEIR CREDIBILITY IS ON THE LINE THEY PROMISED CONSUMERS A 10 CUT IN RATES NATIONWIDE LAST APRIL INSTEAD A SPOT SURVEY LAST FALL SHOWED A THIRD OF CABLE SUBSCRIBERS ACTUALLY PAID HIGHER RATES FOLLOWING THE FCC ACTION BUT INDUSTRY EXECUTIVES ARGUE ANY FURTHER RATE CUTS WILL HURT THEIR PROFITS AND CRIMP THEIR ABILITY TO HELP BUILD VICE PRESIDENT AL GORE'S VAUNTED NATIONWIDE INFORMATION SYSTEM EVEN SMALL RATE CUTS THEY ARGUE WILL SHATTER THE VISION OF CABLE AND PHONE COMPANIES COMPETING TO OFFER AFFORDABLE PHONE AND CABLE TV SERVICE ALONG WITH INTERACTIVE ENTERTAINMENT EDUCATIONAL MEDICAL AND SHOPPING SERVICES SOME EXECUTIVES HAVE EVEN DRAGGED THEIR BANKERS TO FCC MEETINGS TO TESTIFY TO THEIR TENUOUS FINANCIAL CONDITION ON THE HOT SEAT IS NEW FCC CHAIRMAN REED HUNDT WHO WILL BE PRESIDING OVER HIS FIRST MAJOR VOTE IF CHAIRMAN HUNDT DOES THIS AS HIS FIRST MAJOR POLICY DECISION WARNS TEXAS GOP REP JACK FIELDS HE IS GOING TO IGNITE A WAR THE HEATED LOBBYING MAY BE AN EARLY TASTE OF THE FUTURE FOR THE FCC THE ONCESLEEPY REGULATORY AGENCY PLAYS THE KEY ROLE IN THE GOVERNMENT'S EFFORT TO BALANCE THE INTERESTS OF THE TELECOMMUNICATIONS INDUSTRY AGAINST THOSE OF THE CONSUMER AND LEGISLATION RESHAPING THAT INDUSTRY WHICH MANY ON CAPITOL HILL BELIEVE IS LIKELY TO BE ENACTED THIS YEAR WILL VASTLY INCREASE THE FCC'S ROLE ALAN GERRY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CABLEVISION INDUSTRIES THE NATION'S EIGHTHLARGEST CABLE OPERATOR WAS ONE OF THOSE WHO CAME IN TO PLEAD WITH MR HUNDT LAST WEEK IN A 10PAGE LETTER HE ARGUED THAT REREGULATION OF CABLE TELEVISION HAS HAD A PROFOUND IMPACT ON CVI'S BUSINESS BY SIGNIFICANTLY REDUCING OUR REVENUES AND OPERATING CASH FLOW HE SAID FURTHER RATE CUTS COULD FORCE THE COMPANY OUT OF THE CABLE BUSINESS OR LEAD IT TO SELL OUT TO A TELEPHONE COMPANY WE WANT TO BE COMPETITORS ON THE INFORMATION SUPERHIGHWAY NOT VICTIMS OF IT MR GERRY WROTE BACKING UP THE EXECUTIVES ARE THEIR ALLIES ON CAPITOL HILL REP FIELDS THE RANKING MINORITY MEMBER ON THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE SAID IN A LETTER TO MR HUNDT THAT ANY FURTHER DOWNWARD RATE ADJUSTMENT BY THE FCC CAN ONLY BE READ AS AN EXPRESSION THAT YOU DO NOT BELIEVE THAT THERE IS ANY MEANINGFUL ROLE FOR THE CABLE INDUSTRY IN DEVELOPING THE INFORMATION HIGHWAY OF THE FUTURE MR HUNDT HAS BEEN UNDER PRESSURE FROM LAWMAKERS ON THE OTHER SIDE OF THE ISSUE AS WELL LAST NOVEMBER SHORTLY AFTER HE WAS SWORN IN HE RECEIVED A LETTER FROM SENATE COMMERCE CHAIRMAN ERNEST HOLLINGS DEMOCRAT OF SOUTH CAROLINA AND 35 OTHER SENATORS WHO WARNED IT IS OUR VIEW THAT THE COMMISSION MUST TAKE ADDITIONAL ACTION TO REDUCE CABLE RATES AND STEP UP ITS ENFORCEMENT ACTIVITIES TO ENSURE THAT CABLE FIRMS ARE NOT EVADING THE LETTER AND THE SPIRIT OF THE LEGISLATION PASSED LAST YEAR AS A RESULT OF THAT LEGISLATION THE FCC ADOPTED RULES ESTABLISHING REASONABLE RATES FOR CABLE SERVICE IN THE HANDFUL OF MARKETS WHERE CABLE COMPANIES FACE COMPETITION UNDER THE LAW CABLE OPERATORS CAN SKIP THIS BENCHMARK PROCESS AND OPT FOR CALCULATING RATES BASED ON THEIR ACTUAL COSTS OF PROVIDING SERVICE TO GET APPROVAL FOR COSTBASED RATES HOWEVER COMPANIES HAVE TO GIVE THE FCC DETAILED COST DATA ON TUESDAY THE FCC WILL VOTE NOT ONLY ON MODIFYING THE BENCHMARK FORMULA BUT ALSO ON STANDARDS FOR COSTBASED PRICING IN ANTICIPATION OF THE DECISIONS THE COMMISSION EXTENDED ITS FREEZE ON CABLE SYSTEMS' REVENUES UNTIL MAY 15 CONSUMER GROUPS ARGUE THAT THE CABLE INDUSTRY HAS BEEN DOING WELL TOO WELL UNDER THE 1993 RULES BRADLEY STILLMAN LEGISLATIVE COUNSEL FOR THE CONSUMER FEDERATION OF AMERICA WHICH PLAYED AN INSTRUMENTAL ROLE IN PASSING THE 1992 CABLE ACT CONTENDS THAT CAPTIVE CONSUMERS SHOULD NOT BE FORCED TO PAY PRICES ABOVE COMPETITIVE MARKET LEVELS TO BUILD THE INFORMATION SUPERHIGHWAY MR HUNDT WON'T COMMENT BUT AN FCC STAFF MEMBER SAID THE CHAIRMAN ISSUED HIS MARCHING ORDERS SEVERAL WEEKS AGO READ THE LAW LOOK AT THE ECONOMICS AND DO THE RIGHT THING 9402170121 940217 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 FEDERAL FARM CREDIT BANK FUNDING CORP 106 BILLION OF NOTES DUE MARCH 1 1995 PRICED INITIALLY AT PAR TO YIELD 383 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED EVEN WITH COMPARABLE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK SYSTEM 145 MILLION OF NOTES DUE FEB 28 1997 PRICED AT PAR TO YIELD 49 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 11 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE FEB 23 2004 PRICED AT PAR TO YIELD 631 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE FEB 23 1999 PRICED INITIALLY AT PAR TO YIELD 495 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE COUPON WILL RISE TO 615 FEB 1996 GOLDMAN SACHS & CO IS LEAD UNDWRITER FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE FEB 25 2004 PRICED AT PAR TO YIELD 642 ACCORDING MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GTE NORTH INC 200 MILLION OF NOTES DUE FEB 15 1999 PRICED AS 55S AT 99569 TO YIELD 56 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 27 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE BONDS WERE SOLD THROUGH A COMPETITIVE BID WON BY KIDDER PEABODY & CO GTE NORTH IS A UNIT OF GTE CORP STANFORD UNIVERSITY 150 MILLION OF BONDS DUE FEB 1 2024 PRICED AS 6875S AT 9924 TO YIELD 6935 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO STAR BANK NA CINCINNATI 150 MILLION OF STAR BANK SUBORDINATED NOTES DUE MARCH 1 2004 PRICED AS 6375S AT 9935 TO YIELD 6464 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC STAR BANK NA CINCINNATI IS A UNIT OF STAR BANC CORP STUDENT LOAN MARKETING ASSOCIATION 150 MILLION OF STEPUP NOTES DUE MARCH 3 1997 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE COUPON WILL RISE TO 524 ON MARCH 3 1995 THE NOTES NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC STUDENT LOAN MARKETING ASSOCIATION 100 MILLION OF STEPUP NOTES DUE FEB 24 1999 PRICED AT PAR TO YIELD 45 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 6 FEB 24 1995 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 34 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WEST TEXAS UTILITIES CO 40 MILLION OF 6125 FIRSTMORTGAGE BONDS SERIES S PRICED AT 99225 TO YIELD 623 FEB 1 2004 ACCORDING TO PARENT COMPANY CENTRAL & SOUTH WEST CORP SMITH BARNEY SHEARSON INC IS THE LEAD MANAGER OF THE OFFERING ABT BUILDING PRODUCTS CORP THREE MILLION COMMON SHARES PRICED AT 29 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND DILLON READ & CO CIRRUS LOGIC INC 31 MILLION COMMON SHARES PRICED AT 4125 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MARTIN MARIETTA CORP INITIAL OFFERING OF 76 MILLION COMMON SHARES PRICED AT 23 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CHICAGO SCHOOL FINANCE AUTHORITY 410 MILLION OF SERIES 1994A BONDS FOR SCHOOLIMPROVEMENT FINANCING APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 39 IN 1997 TO 53 IN 2009 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MARYLAND 184 MILLION OF CAPITALIMPROVEMENT AND REFUNDING GENERALOBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 275 IN 1995 TO 49 IN 2008 MOODY'S AND S&P HAVE RATED THE BONDS TRIPLEA NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 150 MILLION OF SERIES 1994A BONDS PRICED BY A WR LAZARD LAIDLAW & MEAD INC GROUP YIELDS FOR THE ISSUE RANGE FROM 3 IN 1995 TO 56 IN 2023 MOODY'S AND S&P HAVE RATED THE BONDS SINGLEA WHILE FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAPLUS RATING SAN FRANCISCO 1757 MILLION OF SERIES 1994 SEWER REVENUE REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 41 IN 1999 TO 55 IN 2022 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1700 IS BACKED BY THE AGENCY'S STRIPPED MORTGAGE BACKED TRUST 163 WHICH IS BACKED BY THE AGENCY'S 30YEAR 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 965 AND WEIGHTED AVERAGE MATURITY OF 304 MONTHS MONEY STORE INC 500 MILLION OF HOMEEQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN FIVE PARTS BY PRUDENTIAL SECURITIES INC THE ISSUE WAS RATED TRIPLEA BY MOODY'S AND S&P THE MUNICIPAL BOND INVESTORS ASSURANCE CORP PROVIDED A 100 INSURANCE WRAP THE 15438 MILLION OF CLASS A1 CERTIFICATES WAS PRICED AS 4875S AT 10025 TO YIELD 486 A 55BASISPOINT SPREAD ABOVE THE ONEYEAR TREASURY BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF 099 YEAR THE 13047 MILLION OF CLASS A2 CERTIFICATES WAS PRICED AS 525S AT 10021875 TO YIELD 509 A 69BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 215 YEARS THE 10326 MILLION OF CLASS A3 CERTIFICATES WAS PRICED AS 5525S AT 10021875 TO YIELD 544 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 310 YEARS THE 8757 MILLION OF CLASS A4 CERTIFICATES WAS PRICED AS 627S AT 10025 TO YIELD 627 A 72BASISPOINT SPREAD ABOVE TREASURYS THE CERTIFICATES HAVE AN AVERAGE LIFE OF SEVEN YEARS THE 2432 MILLION OF CLASS A5 CERTIFICATES WAS PRICED AS 6725S AT 100125 TO YIELD 677 A 90BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE MONTHLY PAYMENTS BEGIN MARCH 15 CONCESIONARIA ESPANOLA DE AUTOPISTAS SA EUROVIAS SPAIN 8075 MILLION SWISS FRANCS OF PRIVATE FLOATINGRATE NOTES AT SIXMONTH SWISS FRANC LONDON INTERBANK OFFERED RATE PLUS 025 POINT DUE MARCH 21 1996 PRICED AT 1004 VIA CREDIT SUISSE CREDIT COMMERCIAL DE FRANCE FRANCE 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE MARCH 18 2004 AT ISSUE PRICE PAR VIA KIDDER PEABODY SECURITIES CO PAYABLE SEMIANNUALLY AT 025 POINT BELOW SIXMONTH DOLLAR LIBOR MAXIMUM COUPON 10 MINIMUM 525 FEES 05 CREDIT LOCAL DE FRANCE FRENCH AGENCY 15 BILLION FRENCH FRANCS OF 625 EUROBONDS DUE SEPT 27 2005 AT ISSUE AND REOFFER PRICE 100764 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 615 MARGIN OF 23 BASIS POINTS OVER 825 FRENCH TREASURY OF 2004 BONDS WILL TRADE INTERCHANGEABLY WITH 15 BILLION FRANCS OF IDENTICAL BONDS OUTSTANDING FEES 035 EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION OF 6 EUROBONDS DUE MARCH 9 2004 AT ISSUE AND REOFFER PRICE 99762 VIA SG WARBURG SECURITIES LTD BONDS YIELD 603 MARGIN OF EIGHT BASIS POINTS OVER COMPARABLE NEW US TREASURY NOTE FEES 0325 CIE GENERALE DES EAUX FRANCE TWO BILLION FRENCH FRANCS OF 625 EUROBONDS DUE MARCH 15 2004 AT ISSUE PRICE 10071 VIA SOCIETE GENERALE REOFFERED AT 99135 TO YIELD 637 A SPREAD OF 42 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES TWO KFW INTERNATIONAL FINANCE INC GERMAN PARENT 200 MILLION OF 6625 EUROBONDS DUE NOV 26 2004 AT ISSUE PRICE 100775 VIA JP MORGAN SECURITIES LTD REOFFERED AT 991 TO YIELD 674 A MARGIN OF 10 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES TWO MOBIL AUSTRALIA FINANCE CO US PARENT 100 MILLION AUSTRALIAN DOLLARS OF 6625 EUROBONDS DUE MARCH 15 2001 AT ISSUE PRICE 10121 VIA MORGAN STANLEY & CO INTERNATIONAL LTD REOFFERED AT 9966 TO YIELD 669 GUARANTOR MOBIL CORP FEES 1875 SKANDINAVISKA ENSKILDA BANKEN SWEDEN 200 MILLION OF SUBORDINATED NOTES DUE FEB 15 2009 PRICED AS 6875S AT 99361 TO YIELD 6944 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 108 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P AND WAS SOLD THROUGH LEAD MANAGER GOLDMAN SACHS & CO TOYOTA FINANCE AUSTRALIA LTD JAPANESE PARENT 100 MILLION AUSTRALIAN DOLLARS OF 55 EUROBONDS DUE APRIL 7 1997 AT ISSUE PRICE 10015 VIA HAMBROS BANK LTD BONDS YIELD 596 AT 98775 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 10 BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR TOYOTA MOTOR FINANCE NETHERLANDS BV ISSUED OFF EUROMEDIUMTERM NOTE PROGRAM FEES 15 LESS 0125 FOR LEAD MANAGER 9402170120 940215 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9402170119 940217 US TO SELL 28 BILLION OF NOTES NEXT WEEK WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 128 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 17 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1519 BILLION IN MATURING NOTES THE FEDERAL RESERVE HOLDS 763 MILLION OF THE MATURING SECURITIES FOR ITS OWN ACCOUNT THE FED ALSO HOLDS 979 MILLION OF MATURING SECURITIES AS AGENT FOR FOREIGN AND INTERNATIONAL MONETARY AUTHORITIES TENDERS FOR THE TWOYEAR NOTES ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES MUST BE RECEIVED BY NOON EST NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE TWOYEAR NOTES MUST BE RECEIVED BY 1 PM EST WEDNESDAY TENDERS FOR THE FIVEYEAR NOTES ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST NEXT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST NEXT THURSDAY THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827N99 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827P22 9402170118 940217 STATOIL AS ACQUIRES 38 STAKE STATOIL NORTH AMERICA INC STATOIL'S STAMFORD CONN MARKETING AND TRADING AFFILIATE WILL PROVIDE A MINIMUM OF 200 BILLION CUBIC FEET OF NATURAL GAS OVER THE NEXT FIVE YEARS TO EASTERN'S GASMARKETING AND TRANSPORTATION UNIT APPALACHIAN GAS SALES THE NATURAL GAS WILL BE ACQUIRED IN THE US MARKET THROUGH PURCHASES AS WELL AS EXCHANGES AND SALES AGREEMENTS WITH NORTH SEA OIL MARKETED BY STATOIL NORTH AMERICA THE COMPANIES SAID 9402170117 940217 PHILLIPS PETROLEUM CHINA PACT BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SAID THAT A SUBSIDIARY AND A UNIT OF ATLANTIC RICHFIELD CO SIGNED AGREEMENTS WITH CHINA NATIONAL OFFSHORE OIL CORP TO EXPLORE FOR OIL IN THE EAST CHINA SEA THE AGREEMENTS COVER TWO BLOCKS TOTALING 3500 SQUARE MILES LOCATED 120 MILES SOUTHEAST OF SHANGHAI ATLANTIC RICHFIELD IS A PETROLEUM COMPANY BASED IN LOS ANGELES PHILLIPS SAID IT WILL BE THE OPERATOR OF THE EXPLORATION PROJECT 9402170116 940217 CANADIAN CONSUMER PRICES OTTAWA CANADA'S CONSUMER PRICE INDEX DECLINED A SEASONALLY ADJUSTED 02 IN JANUARY FROM DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID FOR THE THREE MONTHS ENDED JAN 31 THE SEASONALLY ADJUSTED INDEX ROSE AT A COMPOUND ANNUAL RATE OF 09 9402170115 940216 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9402170114 940217 SOCIETY SHAREHOLDERS BACK THE ANNOUNCED MERGER WITH KEYCORP CLEVELAND SHAREHOLDERS OF SOCIETY CORP AND ALBANY NYBASED KEYCORP APPROVED THE PREVIOUSLY ANNOUNCED MERGER BETWEEN THE TWO COMPANIES ENDING SOME NERVOUSNESS AT THE COMPANIES THAT THE DEAL MIGHT NOT GO THROUGH WHILE THE MERGER OF EQUALS WAS LARGELY EXPECTED DURING THE PAST FEW WEEKS THE COMPANIES LOBBIED RESISTANT INSTITUTIONAL INVESTORS WHO BELIEVED A BETTER DEAL FOR KEYCORP MIGHT BE FOUND ELSEWHERE MOREOVER NEW YORK STATE LAW REQUIRED A TWOTHIRDS APPROVAL FROM KEYCORP SHAREHOLDERS AND THOSE NOT VOTING WOULD ESSENTIALLY BECOME NO VOTES BUT THE WOOING APPARENTLY WORKED WITH 88 OF KEYCORP'S SHAREHOLDERS APPROVING THE PLAN MEANWHILE SOCIETY WHICH REQUIRED A SIMPLE MAJORITY FOR APPROVAL SAID 74 OF ITS SHAREHOLDERS APPROVED THE DEAL INCLUDING 97 OF THOSE SHARES VOTING UNDER TERMS OF THE MERGER KEYCORP SHAREHOLDERS WILL RECEIVE 1205 SHARES OF THE NEW COMPANY COMMON STOCK FOR EACH SHARE OF KEYCORP HELD SOCIETY SHAREHOLDERS WILL RETAIN THEIR EXISTING NUMBER OF SHARES IN THE NEW COMPANY THE MERGER EFFECTIVE MARCH 1 WILL CREATE A NEW BANKING COMPANY WITH ABOUT 60 BILLION IN ASSETS AND MORE THAN 1300 BRANCH AND AFFILIATE OFFICES IN 18 STATES THE COMBINED COMPANIES WILL RETAIN THE NAME KEYCORP WITH HEADQUARTERS IN CLEVELAND 9402170113 940217 TECHNOLOGY MERGER ACTIVITY SURGED IN 1993 FOR INFORMATION TECHNOLOGY COMPANIES NEW YORK MERGERS AND ACQUISITIONS IN INFORMATION TECHNOLOGY SURGED 35 TO 713 TRANSACTIONS IN 1993 THE HIGHEST LEVEL SINCE 1988 A SURVEY FOUND BROADVIEW ASSOCIATES BASED IN FORT LEE NJ SAID THE TRANSACTIONS WERE VALUED AT ABOUT 28 BILLION UP 33 FROM THE PREVIOUS YEAR THE SOFTWARE AND INFORMATION SERVICES SECTOR LED THE PACK WITH A 47 INCREASE IN THE NUMBER OF TRANSACTIONS FROM 1992 FOLLOWED BY A 28 INCREASE IN HARDWARE AND A 13 IN TELECOMMUNICATION SERVICES M&A CONTINUES TO PLAY A KEY ROLE IN THE GROWTH STRATEGIES OF MANY OF THE INDUSTRY'S LEADING COMPANIES BROADVIEW SAID IN ITS REPORT BROADVIEW SAID THE OVERALL MAKEUP OF THE INFORMATION TECHNOLOGY INDUSTRY CONTINUES TO BE DOMINATED BY RELATIVELY SMALL PRIVATE COMPANIES WHO ARE DEVELOPING NEW TECHNOLOGIES AND MARKETS WITH A SPEED THAT IS OFTEN BEYOND THE REACH OF MANY LARGER PUBLIC COMPANIES IT SAID ONLY 5 OF THE TRANSACTIONS INVOLVED THE SALE OF PUBLIC COMPANIES 9402170112 940217 WHO'S NEWS REXON INC REXON INC MANHATTAN BEACH CALIF MICHAEL O PRELETZ 55YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPPED DOWN FROM THOSE POSTS BECAUSE THE COMPANY'S REORGANIZATION HAS BEEN COMPLETED THE PRESIDENT AND CHIEF OPERATING OFFICER ROBERT C GENESI 57 ASSUMES THE ADDITIONAL POSITIONS OF CHAIRMAN AND CEO SUCCEEDING MR PRELETZ THE COMPANY SAID IT IS ALSO RESTRUCTURING ITS BOARD AND ELECTED CHARLES E MORAN 52 CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER OF SOFTDESK INC A DIRECTOR HE SUCCEEDS ROBERT L MILLER 47 WHO RESIGNED AT THE SAME TIME MR PRELETZ AND STEVAN BIRNBAUM 56 DID THE COMPANY INTENDS TO ELECT A DIRECTOR TO SUCCEED MR BIRNBAUM SOON REXON DEVELOPS DATAMANAGEMENT SOFTWARE TAPEDRIVE SYSTEMS AND COMPUTERRELATED PRODUCTS 9402170111 940217 NEW PLAN REALTY BUYS PROPERTIES NEW YORK NEW PLAN REALTY TRUST SAID IT PURCHASED A SHOPPING CENTER IN LANCASTER PA AND SIGNED CONTRACTS UNDER PREVIOUSLY ANNOUNCED TRANSACTIONS TO BUY FOUR MORE CENTERS FOR A TOTAL VALUE OF ABOUT 31 MILLION THE REAL ESTATE INVESTMENT TRUST SAID THE ACQUISITION OF THE FIVE PROPERTIES WITH A COMBINED RETAIL SPACE EXCEEDING 710000 SQUARE FEET MARKS THE CONTINUATION OF ITS AGGRESSIVE ACQUISITION PROGRAM OUR EXPENDITURES FOR PROPERTIES IN 1994 ARE TARGETED AT 100 TO 150 MILLION THE COMPANY SAID NEW PLAN REALTY OWNS 110 PROPERTIES IN 18 STATES INCLUDING SHOPPING CENTERS AND APARTMENT COMPLEXES 9402170110 940217 TECHNOLOGY HDTV PANEL PICKS ZENITH SIGNAL SYSTEM BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE INDUSTRY COALITION PUTTING TOGETHER THE PROPOSED SYSTEM FOR HIGHDEFINITION TV MADE ITS FINAL MAJOR TECHNICAL DECISION CHOOSING ZENITH ELECTRONICS CORP'S SIGNALTRANSMISSION SYSTEM OVER A RIVAL GENERAL INSTRUMENT CORP METHODOLOGY IN MAY THE THREE GROUPS THAT HAD BEEN TRYING INDEPENDENTLY TO DEVELOP A SYSTEM TO SERVE AS THE US STANDARD FOR HDTV FORMED A GRAND ALLIANCE THAT WOULD POOL THEIR TECHNOLOGY AND SHARE THE ENSUING ROYALTY PAYMENTS SINCE THEN THE ALLIANCE HAS BEEN TESTING ITS MEMBERS' VARIOUS TECHNOLOGIES AND DECIDING WHICH MAKER'S DESIGN WILL BE INCORPORATED INTO THE FINAL PROTOTYPE PACKAGE TO BE PRESENTED TO THE FEDERAL COMMUNICATIONS COMMISSION FOR APPROVAL AS THE SINGLE STANDARD THE ALLIANCE'S TESTING AND SELECTION PROCESS IS BEING DONE IN COOPERATION WITH THE FCC'S ADVISORY COMMITTEE ON ADVANCED TELEVISION SERVICE THIS ARRANGEMENT IS EXPECTED TO MAKE THE FCC'S FINAL APPROVAL PROCESS EXPECTED TO BEGIN IN EARLY 1995 RELATIVELY FREE OF SURPRISES LATE LAST YEAR THE ALLIANCE SELECTED ITS VIDEOCOMPRESSION TECHNOLOGY AND A DIGITALDATA PACKETING SYSTEM BASED ON PROPOSED INTERNATIONAL STANDARDS AS WELL AS THE AUDIO TECHNOLOGY IT PLANS TO USE THE LAST REMAINING QUESTION WAS THE DIGITAL TRANSMISSION TECHNOLOGY BY WHICH BROADCASTERS AND CABLE OPERATORS WILL SEND THE HIGHQUALITY TV PICTURES AND SOUND TO INDIVIDUAL SETS THE CONSORTIUM SAID THAT AFTER EXTENSIVE TESTING IT HAD CHOSEN ZENITH'S VESTIGIAL SIDEBAND OR VSB TECHNOLOGY RATHER THAN THE SYSTEM DEVELOPED BY GENERAL INSTRUMENT THE ALLIANCE SAID IT CHOSE THE ZENITH TECHNOLOGY BECAUSE OF THE BROADER GEOGRAPHIC COVERAGE IT PROVIDED AS WELL AS THE MINIMAL INTERFERENCE THE SIGNAL GIVES TO CURRENT TELEVISION TRANSMISSIONS THE VSB TECHNOLOGY WILL BE FINETUNED TO INCORPORATE CERTAIN TECHNICAL COMPONENTS FROM THE GENERAL INSTRUMENTS SYSTEM WHILE ZENITH'S SELECTION NO DOUBT SPARKED BACKSLAPPING AMONG ITS TECHNICAL DEVELOPMENT TEAM A SPOKESMAN CONCEDED THAT UNDER THE ALLIANCE'S ROYALTYSHARING ARRANGEMENT THE FINANCIAL IMPACT OF ITS VICTORY ISN'T SIGNIFICANTLY DIFFERENT THAN IF THE GLENVIEW ILL COMPANY'S DESIGN HAD LOST THE COMPETITION THE SPINOFF BENEFIT OF THIS DECISION TODAY THE SPOKESMAN SAID IS THAT IT CAN HELP ESTABLISH ZENITH'S VSB SYSTEM AS A TRANSMISSION STANDARD FOR NONHDTV APPLICATIONS THOSE WOULD INCLUDE DIGITAL CABLE TRANSMISSION VIDEOONDEMAND AND INTERACTIVE TELEVISION HE SAID THERE ARE VARIOUS COMPETING APPROACHES FOR SENDING DIGITAL SIGNALS FOR CABLE AND THE SPOKESMAN NOTED THAT ZENITH IS WORKING TO LICENSE ITS VSB TECHNOLOGY FOR SUCH APPLICATIONS TO CABLETV AND TELECOMMUNICATIONS INDUSTRY PLAYERS THE FIRST HDTV SETS ARE EXPECTED TO BE ON THE MARKET IN THE US IN THE SECOND HALF OF 1996 9402170109 940217 MICHAELS TO BUY TREASURE HOUSE IRVING TEXAS MICHAELS STORES INC SAID IT AGREED TO BUY TREASURE HOUSE STORES INC A SEATTLEBASED ARTS AND CRAFTS CHAIN TERMS WEREN'T DISCLOSED TREASURE HOUSE HAS NINE STORES IN WASHINGTON AND OREGON AND WILL ADD TWO NEW STORES IN THE NEXT 90 DAYS MICHAELS STORES IS AN ARTS AND CRAFTS CHAIN OF 232 STORES IN THE US AND CANADA 9402170108 940217 INTERNATIONAL TWO LAWMAKERS QUIT FACTION OF ZHIRINOVSKY ULTRANATIONALIST RUSSIAN IS TERMED DICTATORIAL AND OVERLY PROVOCATIVE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW QUARRELS WITHIN THE PARTY OF ULTRANATIONALIST VLADIMIR ZHIRINOVSKY BROKE INTO THE OPEN YESTERDAY WITH THE DEFECTION OF TWO LAWMAKERS FROM HIS LIBERAL DEMOCRATIC FACTION IN THE LOWER HOUSE OF PARLIAMENT THE TWO DEFECTORS VIKTOR KOBELEV AND ALEXANDER PRONIN SAID THEY WERE QUITTING MR ZHIRINOVSKY'S FACTION BECAUSE HE HAD BECOME TOO DICTATORIAL INSIDE THE PARTY AND TOO PROVOCATIVE GENERALLY IN A RECENT SPEECH IN PARLIAMENT FOR EXAMPLE MR ZHIRINOVSKY WARNED THAT ANY WESTERN NATION ATTACKING SERBS IN FORMER YUGOSLAVIA WOULD BE DESTROYED DURING MR ZHIRINOVSKY'S SPEECH THE PARLIAMENT'S CHAIRMAN ORDERED HIS MICROPHONE SWITCHED OFF MESSRS KOBELEV AND PRONIN ALSO SAID MR ZHIRINOVSKY HAD IRRESPONSIBLY DISTORTED THE LIBERAL DEMOCRATIC PARTY'S PROGRAM OF RESTORING RUSSIAN GREATNESS DURING HIS RECENT SWING THROUGH THE FORMER YUGOSLAVIA MR ZHIRINOVSKY ANSWERED THIS CRITICISM IN TYPICALLY LURID FASHION SAYING THAT MESSRS KOBELEV AND PRONIN HADN'T QUIT THE PARTY BUT HAD BEEN EXPELLED BOTH FOR ACTIVITIES INCOMPATIBLE WITH THE STATUS OF A PARTY MEMBER AND FOR THE COMMON CRIMES THEY HAD COMMITTED MR ZHIRINOVSKY DIDN'T SPECIFY WHAT THOSE ALLEGED CRIMES MIGHT HAVE BEEN IT'S TOO EARLY TO KNOW WHETHER THE PARTY RIFT WILL HURT MR ZHIRINOVSKY HE HAS SURVIVED INFIGHTING BEFORE SHORTLY AFTER HIS PARTY WAS ORGANIZED BACK IN 1990 SOME OF HIS DEPUTIES TRIED TO EXPEL HIM COMPLAINING OF THE SAME EXTREMISM MR ZHIRINOVSKY KICKED THEM OUT INSTEAD THE DIFFICULTY FOR REBELS WITHIN THE LIBERAL DEMOCRATIC PARTY IS THAT THEIR MAIN CLAIM TO FAME AMONG VOTERS IS THEIR LINK TO MR ZHIRINOVSKY HIS NAME ON THE PARTY TICKET WAS THE BIG DRAW FOR THE 12 MILLION VOTES THAT GAVE SEATS TO 59 OF THE 64 INITIAL MEMBERS OF HIS PARLIAMENTARY FACTION IN THE 450SEAT LOWER HOUSE AND THOUGH MR ZHIRINOVSKY'S EXTREME TACTICS INFURIATE SOME OF HIS FELLOW LAWMAKERS THEY APPEAL TO MILLIONS OF RUSSIANS WHO FEEL MORE ORTHODOX POLITICS THESE PAST FEW YEARS HAS DELIVERED MAINLY HIGH INFLATION AND CRIME THE STAKES HERE ARE LARGE MR ZHIRINOVSKY HAS SET HIS SIGHTS ON WINNING RUSSIA'S NEXT PRESIDENTIAL ELECTION SCHEDULED FOR 1996 BARRING A HIGHLY UNLIKELY DECISION BY MR YELTSIN TO EXHUME LAST SEPTEMBER'S DECREE THAT THEY WILL BE HELD THIS JUNE THE CONTEST RIGHT NOW SEEMS TO BE WHETHER THE GROWING NUMBER OF ANGRY EXILES FROM THE LIBERAL DEMOCRATIC PARTY CAN SINK MR ZHIRINOVSKY'S POLITICAL CAREER BEFORE HE CAN APPEAL DIRECTLY TO VOTERS PONDERING THE NEXT PRESIDENTIAL BALLOT MR KOBELEV SERVED AS CAMPAIGN MANAGER FOR MR ZHIRINOVSKY AND DEPUTY CHAIRMAN OF THE LIBERAL DEMOCRATIC PARTY AND IF POTENTIALLY DAMAGING SECRETS EXIST HE IS WELLPLACED TO KNOW THEM AMONG RECENT ALLEGATIONS ON WHICH MR KOBELEV MIGHT BE ABLE TO SHED LIGHT FOR EXAMPLE ARE RUMORS THAT MR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY HAS RECEIVED FUNDING FROM FASCIST GROUPS IN EUROPE AND UNSUBSTANTIATED CHARGES BY ST PETERSBURG MAYOR ANATOLY SOBCHAK THAT MR ZHIRINOVSKY'S PARTY WAS ORIGINALLY A CREATION OF THE KGB ASKED ABOUT POTENTIAL SPLITS WITHIN HIS PARTY LAST MONTH MR ZHIRINOVSKY SAID UNDER THE CHARTER OF THE PARTY I HAVE ALL THE POWERS INBETWEEN PARTY CONGRESSES AS SOON AS THERE IS AN ODOR AN ATTEMPT TO SPLIT THE PARTY I REMOVE SUCH A PERSON IMMEDIATELY 9402170107 940217 J&JMERCK VENTURE FILES PATENT LAWSUIT OVER ANTACID PRODUCT PHILADELPHIA A JOINT VENTURE OF JOHNSON & JOHNSON AND MERCK & CO THAT MAKES MYLANTA BRAND ANTACID FILED SUIT AGAINST A SMALL CLOSELY HELD FIRM IN NEW JERSEY CHARGING IT WITH PATENT INFRINGEMENT THE SUIT FILED IN US DISTRICT COURT HERE BY JOHNSON & JOHNSONMERCK CONSUMER PHARMACEUTICALS CO FORT WASHINGTON PA ALLEGES THAT GUARDIAN DRUG CO SELLS AN ANTACID PRODUCT UNDER THE NAME MYACID THAT IS CONFUSINGLY SIMILAR TO THE J&JMERCK JOINT VENTURE'S MYLANTA PRODUCT THE JOINT VENTURE ALSO ASKED THE COURT TO STOP GUARDIAN FROM MAKING AND DISTRIBUTING ITS PRODUCT UNDER THE NAME MYACID OR ANY OTHER NAME THAT IS CONFUSINGLY SIMILAR TO MYLANTA THE JOINT VENTURE FORMED BY JOHNSON & JOHNSON AND MERCK IN 1990 TO MARKET OVER THE COUNTER DRUGS BROUGHT OTHER ACTIONS AGAINST OTHER MAKERS OF ANTACIDS AND OTHER PRODUCTS AND SUCCEEDED IN GETTING THEM TO STOP MAKING THOSE PRODUCTS UNDER SIMILAR NAMES OR PACKAGES A J&J SPOKESMAN SAID IN 1993 SALES OF MYLANTA TOTALED ABOUT 142 MILLION AND ACCOUNTED FOR ROUGHLY 18 OF ALL US SALES OF ANTACID PRODUCTS THE SUIT SAYS ABBAS DAHODWALA VICE PRESIDENT OF MARKETING AND FINANCE AT GUARDIAN SAID THAT COMPANY HAS ANNUAL SALES OF ABOUT 10 MILLION WITH SALES FROM MYACID TOTALING ABOUT 500000 A YEAR HE SAID THE COMPANY WHICH HAS BEEN SELLING THE MYACID PRODUCT FOR ABOUT SEVEN YEARS WILL CONSULT WITH ITS ATTORNEYS AND DECIDE WHAT COURSE TO TAKE 9402170106 940217 WHO'S NEWS MARSHALL & ILSLEY CORP MARSHALL & ILSLEY CORP MILWAUKEE DENNIS J KUESTER PRESIDENT AND GORDON H GUNNLAUGSSON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WERE ELECTED DIRECTORS OF THIS BANK HOLDING COMPANY RAISING BOARD MEMBERSHIP TO 14 9402170105 940217 WHO'S NEWS RJR NABISCO NAMES POWELL CHAIRMAN CHIEF OF INTERNATIONAL UNIT NEW YORK RJR NABISCO HOLDINGS CORP NAMED HF JAKE POWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE FOOD COMPANY'S NABISCO INTERNATIONAL UNIT MR POWELL HAD BEEN PRESIDENT OF THE UNIT MR POWELL 61 YEARS OLD WILL CONTINUE TO REPORT TO H JOHN GREENIAUS CHAIRMAN AND CHIEF EXECUTIVE OF NABISCO FOODS GROUP THE WORLDWIDE FOOD BUSINESS ARM OF RJR NABISCO THAT OVERSEES THE INTERNATIONAL OPERATION NABISCO INTERNATIONAL HAS ANNUAL SALES OF 960 MILLION OPERATIONS IN MORE THAN 20 COUNTRIES AND DOES BUSINESS IN 87 COUNTRIES JAMES J POSTL 47 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR POSTL FORMERLY PRESIDENTAMERICAS OF PEPSICO INC'S PEPSICO FOODS INTERNATIONAL AND PRESIDENT OF HOSTESS FRITOLAY CANADA WILL REPORT TO MR POWELL WITH THE APPOINTMENTS NABISCO INTERNATIONAL SAID IT WILL ACCELERATE ITS OVERSEAS MARKETING EFFORTS ESPECIALLY IN EUROPE AND ASIA WHERE ITS PRESENCE IS STILL SMALL THE UNIT HAD NOT HAD A CHAIRMAN CHIEF EXECUTIVE OR CHIEF OPERATING OFFICER PRIOR TO THE APPOINTMENTS NABISCO INTERNATONAL MARKETS A WIDE RANGE OF PRODUCTS INCLUDING COOKIES CRACKERS DRY MIXES BAKING POWDER FRUIT JUICE PASTA SNACKS AND CONFECTIONS 9402170104 940202 TEXAS JOURNAL TAX AIMED AT CREATING JOBS MISSES MARK HALFCENT TAX GOES TO SUPPORT HOSPITAL AND KILLERBEE STATUE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL SOMETHING HAS GONE AWRY IN RURAL TEXAS' QUEST FOR ECONOMIC DEVELOPMENT IN HIDALGO FUNDS EARMARKED FOR THE CREATION OF NEW INDUSTRIAL JOBS WERE USED TO BUILD A STATUE OF A GIANT KILLER BEE IN CAMERON OFFICIALS ARE USING SIMILAR FUNDS TO KEEP THE LOCAL HOSPITAL AFLOAT AND IN KEMAH OFFICIALS APPROVED USING SUCH MONEY FOR THE PURCHASE AND STRINGING OF CHRISTMAS LIGHTS IN THE TOWN IT'S KIND OF A CONSTANT BATTLE TO KEEP THIS MONEY RESERVED FOR WHAT IT WAS INTENDED FOR SAYS SEN BILL RATLIFFE A REPUBLICAN FROM MOUNT PLEASANT THERE ARE GOING TO BE CASES WHERE PEOPLE DON'T USE IT WISELY IF ANYBODY KNOWS THE PURPOSE OF THIS MONEY IT'S MR RATLIFFE IN 1989 HE SPONSORED THE LEGISLATION THAT GAVE TEXAS' SMALLER CITIES THOSE IN COUNTIES WITH FEWER THAN 500000 PEOPLE THE OPPORTUNITY TO COLLECT UP TO A 1/2CENT SALES TAX PROVIDED THE PROCEEDS WERE USED FOR THE CREATION OF INDUSTRIAL JOBS THE LAW WAS AMENDED TWO YEARS LATER PERMITTING SOME LARGER CITIES TO COLLECT THE TAX AND USE IT FOR A BROADER RANGE OF PURPOSES ARLINGTON'S 190 MILLION STADIUM WAS PRIMARILY FINANCED BY THE TAX CURRENTLY 119 CITIES LEVY THE SALES TAX WHICH HAS GENERATED MORE THAN 150 MILLION SINCE 1989 AND LAST MONTH 15 NEW CITIES VOTED TO BEGIN COLLECTING THE TAX THE INCENTIVES HAVE BECOME A VERY BIG PART OF ECONOMIC DEVELOPMENT IN TERMS OF RECRUITING COMPANIES AND IN KEEPING THE ONES YOU HAVE SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORP THE AGENCY THAT OVERSEES THE SPENDING OF THE SALES TAX THEY ARE PARTICULARLY NECESSARY TOOLS IN COMMUNITIES THAT ARE OUTSIDE THE MAJOR URBAN AREAS MR BOURN SAYS THAT AMARILLO HAS SPENT ABOUT 20 MILLION TO SPONSOR 24 PROJECTS THAT ARE EXPECTED TO CREATE 4400 DIRECT AND INDIRECT JOBS BUT CONCERN THAT THE TAX IS BEING MISUSED HAS RAISED THE POSSIBILITY THAT THE LEGISLATURE WILL CRACK DOWN EITHER BY REQUIRING STATE APPROVAL FOR EXPENDITURES IMPOSING STRICTER GUIDELINES OR DOING AWAY WITH THE TAX ALTOGETHER IT CAN AND SHOULD BE A VALUABLE TOOL FOR THE ECONOMIC DEVELOPMENT OF TEXAS SAYS BILL R SHELTON MANAGING DIRECTOR OF THE CORNERSTONE GROUP A FORT WORTH CONSULTING FIRM THAT HAS CONDUCTED SURVEYS ON CITIES' USE OF THE TAX THE ABUSES UNFORTUNATELY ARE NOT GOING UNNOTICED THOSE ABUSES CRITICS SAY COVER A WIDE RANGE SOME TOWNS THEY SAY SPEND MONEY ON PROJECTS THAT APPEAR TO BE CLEARLY OUTSIDE THE PURPOSE OF CREATING INDUSTRIAL JOBS BUYING CHRISTMAS LIGHTS FOR INSTANCE OR EXPANDING THE COUNTY COURTHOUSE BUT A BIGGER PROBLEM CRITICS CHARGE IS THAT MANY SMALL TOWNS DON'T HAVE THE EXPERTISE TO EVALUATE INVESTMENT OPTIONS AND END UP THROWING MONEY AWAY ON QUESTIONABLE PROJECTS THAT SOME SUGGEST IS WHAT HAPPENED IN COPPERAS COVE A CITY OF 24000 NEAR KILLEEN THE PROBLEMS STARTED WHEN THE BOARD OF THE LOCAL ECONOMICDEVELOPMENT CORPORATION GUARANTEED A 14000 LOAN TO A LOCAL PHOTOGRAPHY STUDIO THE STUDIO OFFICIALS SAY WANTED TO HIRE ANOTHER EMPLOYEE AND PURCHASE NEW EQUIPMENT IN ORDER TO EXPAND INSTEAD THE COMPANY DEFAULTED ON THE LOAN AND LEFT TOWN WITH THE COLLATERAL BUT THAT'S NOT THE WORST OF IT THE BOARD LAST YEAR ALSO BACKED A LOAN FOR MORE THAN 1 MILLION FOR NO TOUCH INC A STARTUP CONTAINERMANUFACTURING COMPANY SIX MONTHS LATER THE BOARD GUARANTEED ANOTHER 300000 LOAN THIS ONE FROM THE LOCAL BANK AND IN ANTICIPATION OF THE SUPPORT OPERATIONS NO TOUCH WOULD NEED THE BOARD GUARANTEED A 49000 LOAN FOR THE COVE TOOL & DIE MFG CO A COPPERAS COVE FIRM BUT LATE LAST YEAR CITY OFFICIALS SAY NO TOUCH FILED FOR REORGANIZATION UNDER THE BANKRUPTCY LAWS COVE TOOL QUICKLY FOLLOWED AND NOW THE COPPERAS COVE ECONOMIC DEVELOPMENT CORP IS REPAYING ALL THE DEBT THE EPISODE HAS ALL BUT DEPLETED THE CITY'S ECONOMICDEVELOPMENT FUNDS AND PROMPTED CALLS TO REPEAL THE TAX AND DISBAND THE CORPORATION AFTER TWO YEARS OF COLLECTING AN ESTIMATED 12 MILLION IN TAX FUNDS THE CORPORATION IS LEFT WITH A BALANCE OF ABOUT 33500 AND IT STILL HAS TO PAY OFF MOST OF THE 1 MILLION LOAN TWO WEEKS AGO THE ECONOMIC DEVELOPMENT BOARD FIRED EXECUTIVE DIRECTOR AND FORMER CITY MAYOR JIM FRENCH WE CREATED THE ECONOMICDEVELOPMENT CORPORATION IN HOPES OF DIVERSIFYING OUR ECONOMY SAYS TERESA CLEGHORN EDITOR OF THE COPPERAS COVE LEADERPRESS THE TOWN'S WEEKLY NEWSPAPER INSTEAD OF HAVING HUNDREDS OF NEW JOBS WE HAVE A LOT OF PEOPLE WHO ARE UNEMPLOYED BECAUSE THE COMPANIES THEY WERE WORKING FOR ARE IN BANKRUPTCY OTHER TOWNS HAVE BEEN CRITICIZED FOR PUTTING THE TAX MONEY INTO PROJECTS THAT ARE OUTSIDE THE LEGISLATION'S REQUIREMENTS WHETHER THE SPENDING IS ILLEGAL HASN'T BEEN TESTED BUT THERE'S NO QUESTION THAT SOME OF THE PROJECTS HAVE BEEN WELL ODD IN HIDALGO THE CITY SPENT NEARLY 20000 IN 1992 TO ERECT A FIBERGLASS AND STEEL STATUE OF THE KILLER BEE HIDALGO SAY CITY OFFICIALS WAS THE PLACE WHERE THE AFRICANIZED HONEY BEES FIRST CROSSED INTO THE US IN 1990 THE BIG BEE WAS FUNDED WITH ECONOMICDEVELOPMENT TAX FUNDS UNDER PROVISIONS THAT ALLOW SOME OF THE MONEY TO BE SPENT ON MARKETING AND PROMOTION HIDAGLO OFFICIALS CONCEDE THE BEE PROBABLY SEEMS SILLY TO OUTSIDERS BUT THEY MAKE NO APOLOGIES THE BEE THE CITY CLAIMS HAS GENERATED MUCH MORE THAN 20000 WORTH OF NATIONAL PUBLICITY AND TOUR BUSES NOW STOP TO SEE THE BEE WE HAVE OVER 25000 CARS THAT COME ACROSS THE INTERNATIONAL BRIDGE EVERY DAY GOING TO AND FROM MCALLEN BUT THEY JUST DRIVE THROUGH OUR TOWN SAYS JOE VERA PRESIDENT OF THE HIDALGO CHAMBER OF COMMERCE WE FEEL LIKE WE'VE DETOURED SOME OF THAT TRAFFIC IN THE EAST TEXAS CITY OF ATHENS ABOUT 3 MILLION IN SALESTAX FUNDS WERE USED TO WOO A FISH HATCHERY BUT WHAT MADE THIS DEAL UNUSUAL IS THAT IT IS A STATEOPERATED FISH HATCHERY OTHER CITIES SUCH AS ABILENE AND AMARILLO HAVE USED THE TAX FUNDS TO COURT STATEOPERATED PRISONS BUT THE FISH HATCHERY HAS PROMPTED THE MOST CRITICISM BECAUSE PRISONS AT LEAST CAN CREATE HUNDREDS OF JOBS THE FISH HATCHERY SCHEDULED FOR GROUNDBREAKING THIS MONTH SHOULD CREATE 19 JOBS IT IS CERTAINLY ON THE MARGINS OF GOOD USE FOR IT SAYS SEN RATLIFFE WHO WHILE RELUCTANT TO CRITICIZE USE OF THE MONEY FOR PRISONS CONCEDES IT'S A LITTLE IRONIC THEY WOULD USE IT TO ATTRACT STATE PAYROLL ATHENS OFFICIALS ADMIT 3 MILLION FOR 19 JOBS PROBABLY SOUNDS LIKE A BAD DEAL BUT THEY ARGUE THAT THE FISH HATCHERY WILL BOOST TOURISM ALTHOUGH CITY OFFICIALS SAY ATHENS NOW ATTRACTS ABOUT 60000 TOURISTS A YEAR THEY CLAIM A STUDY FOUND THE FISH HATCHERY WOULD BOOST THAT NUMBER BY 300000 TO 500000 PEOPLE THIS PART OF TEXAS IS WELL KNOWN FOR ITS BASS FISHING SAYS DON MANNING ATHENS CITY MANAGER WHO SAYS THAT THE CITY ALSO HAS USED ITS SALESTAX MONEY TO ATTRACT A MEDICALSUPPLY COMPANY ONE OF THE MOST QUESTIONABLE USES OF THE TAX FUNDS IS IN CAMERON WHERE ALL OF THE CITY'S ESTIMATED 339000 IN SALESTAX COLLECTIONS HAS GONE TOWARD PAYING OFF 600000 IN OPERATING BONDS FOR CENTRAL TEXAS HOSPITAL TEXAS ATTORNEY GENERAL DAN MORALES HAS ISSUED AN OPINION STATING THAT THE TAX MONEY CAN NOT BE USED TO SUPPORT HOSPITALS BUT THE PRACTICE CONTINUES THEY JUSTIFIED IT BY SAYING THAT IF THERE WASN'T A HOSPITAL THAT INDUSTRY WOULDN'T STAY OR WOULDN'T COME INTO CAMERON SAYS JANET SHEGUIT TAX ASSESSOR COLLECTOR ONE OTHER CONCERN ABOUT THE WAY THE TAX HAS WORKED OUT TEXAS TOWNS AREN'T ONLY COMPETING WITH OTHER STATES FOR NEW JOBS THEY'RE COMPETING WITH EACH OTHER THE CITY OF ALLEN FOR INSTANCE SCORED BIG WHEN IT CONVINCED TRW INFORMATION SYSTEMS A UNIT OF TRW INC CLEVELAND TO CONSOLIDATE OFFICES PREVIOUSLY LOCATED IN RICHARDSON DALLAS AND ANAHEIM CALIF IN ALLEN BRINGING WITH IT 1000 JOBS BUT ALLEN'S SUCCESS CAME AT THE EXPENSE OF DALLAS AND RICHARDSON NEITHER OF WHICH ARE ELIGIBLE TO COLLECT THE TAX IN SOME WAYS IT GIVES US A MUCH GREATER ADVANTAGE OVER CITIES THAT DON'T HAVE THE TAX SAYS DAVID PITSTICK DIRECTOR OF THE ALLEN ECONOMIC DEVELOPMENT CORP BUT IF WE DIDN'T HAVE IT COULD WE COMPETE WITH BIGGER CITIES NO WAY DESPITE ALL THE PROBLEMS SEN RATLIFFE IS HESITANT TO CALL FOR CHANGES IN THE LAW THE BOTTOM LINE HE SAYS IS THAT ELECTED CITY OFFICIALS DECIDE HOW TO SPEND THE MONEY EITHER BY THEMSELVES OR THROUGH THEIR APPOINTED REPRESENTATIVE I ASSUME THESE PLACES HAVE VOTERS SEN RATLIFFE SAYS AND IF THEY THINK THIS MONEY IS NOT BEING SPENT THE WAY IT OUGHT TO BE SOMEBODY OUGHT TO BE CALLED TO ANSWER FOR IT BUT AS A RESULT OF THE CONCERNS STATE ECONOMICDEVELOPMENT OFFICIALS ARE WORKING WITH CITIES TO CLARIFY THE DOS AND DON'TS THE TEXAS INDUSTRIAL DEVELOPMENT COUNCIL INC WHOSE MEMBERS INCLUDE ECONOMICDEVELOPMENT CORPORATIONS AND CHAMBERS OF COMMERCE IS CREATING A SPECIAL NEWSLETTER JUST FOR THOSE CITIES THAT COLLECT THE TAX TWO INFORMATION MEETINGS IN PLANO AND SAN ANTONIO ALSO ARE SCHEDULED IN THE COMING MONTHS AND THE GROUP IS SOLICITING INPUT FROM MEMBERS TO DETERMINE WHETHER TO LOBBY FOR CHANGES IN THE LAW DURING THE NEXT LEGISLATIVE SESSION THE TAX IS BEGINNING TO BE JUST ANOTHER REVENUE SOURCE FOR THE CITY IT'S NOT BEING USED TO CREATE NEW JOBS SAYS JOE NEWMAN EXECUTIVE DIRECTOR OF THE INDUSTRIAL DEVELOPMENT COUNCIL WE'RE VERY CONCERNED THAT IT'S GOING TO DILUTE THE ORIGINAL PURPOSE OF THE BILL QUITE A BIT SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR ROTTEN APPLES WSJ FEB 9 1994 SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR IS ATHENS FISHING IN THE RIGHT STREAM AND TEXAS JOURNAL LETTERS TO THE EDITOR BRIBING BUSINESS WSJ FEB 16 1994 9402020120 9402090076 YY94 MM02 9402170103 940217 WHO'S NEWS COMMON FUND COMMON FUND WESTPORT CONN GARY P WATSON 41 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AT THIS INVESTMENT MANAGEMENT FIRM A NEW POSITION HE HAS BEEN A PARTNER OF KPMG PEAT MARWICK THE FUND'S AUDITING FIRM SINCE 1989 9402170102 940217 WORLD MARKETS SHARES RISE IN NERVOUS TOKYO MARKET ADVANCE IN LONDON ON BRITISH DATA CLIMB IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES ROSE SLIGHTLY WEDNESDAY FOLLOWING TWO DAYS OF SHARP DROPS BUT INVESTORS WERE STILL NERVOUS ABOUT THE STRENGTH OF THE JAPANESE YEN AND THE THREAT OF US TRADE SANCTIONS LONDON EQUITIES POSTED A SOLID ADVANCE AS BRITISH ECONOMIC DATA BOOSTED HOPES FOR ANOTHER REDUCTION IN THE BASE LENDING RATE FRANKFURT STOCKS CLIMBED 1 PULLED UP BY GAINS IN FINANCIAL SHARES ON HOPES FOR A GERMAN INTERESTRATE EASING BUT HONG KONG STOCKS SKIDDED 34 TO A FIVEWEEK LOW ON PERSISTENT BEARISH FACTORS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11639 UP 021 REFLECTING HIGHER EUROPEAN AND AMERICAN MARKETS AND LOWER ASIA/PACIFIC MARKETS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10563 UP 201 OR 19 WITH MITSUI MINING OF JAPAN POSTING A 6 GAIN IN ITS LOCAL CURRENCY REALESTATE STOCKS TRAILED AT 13817 DOWN 274 OR 2 WITH NEW WORLD DEVELOPMENT OF HONG KONG SLIDING 72 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED A TOTAL OF 10161 POINTS MONDAY AND TUESDAY ROSE 7751 TO 1905211 IN TRADING THURSDAY THE NIKKEI FELL 15182 POINTS TO CLOSE THE MORNING SESSION AT 1890029 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 360 MILLION SHARES DOWN FROM 3897 MILLION SHARES A DAY EARLIER GAINERS OUTPACED DECLINERS 770265 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH TUMBLED 2664 POINTS TUESDAY INCHED UP 376 TO 155910 THOUGH THE YEN'S SETBACK WAS LIMITED COMPARED WITH ITS SHARP GAINS EARLIER IN THE WEEK FOLLOWING THE FAILURE OF USJAPANESE TRADE TALKS STOCK INVESTORS WERE WARY OF MAKING ANY MAJOR MOVES GIVEN THE UNCERTAINTY IN THE CURRENCY MARKETS JAPANESE SECURITIES HOUSES AND DEALERS TRADING FOR THEIR OWN ACCOUNTS DID MOST OF THE BUYING ARBITRAGERELATED SALES BY JAPANESE INVESTORS KNOCKED SHARES LOWER IN AFTERNOON DEALINGS OVERSEAS INVESTORS CREDITED WITH PUSHING SHARES UP SHARPLY EARLIER THIS YEAR WATCHED THE YEN FROM THE MARKET'S SIDELINES WHEN THE YEN STRENGTHENED DESPITE RUMORS THAT JAPAN'S CENTRAL BANK HAD BOUGHT DOLLARS FOR YEN STOCKS' MORNING REBOUND PETERED OUT SHARES OF CELLULARPHONE MAKERS WERE MIXED AFTER THE US SAID IT WOULD HOLD JAPAN IN VIOLATION OF A 1989 BILATERAL ACCORD ON THAT SECTOR MANY OF THESE ISSUES HAD PLUNGED EARLIER THIS WEEK ON NEWS ABOUT THE COMING PENALTY MARKET ANXIETY ALSO INTENSIFIED BECAUSE OF THE US THREAT TO LIST JAPANESE PRODUCTS FOR POSSIBLE TRADE SANCTIONS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 245 POINTS TO 34177 NEAR THE INTRADAY HIGH THE FT 30STOCK INDEX ADDED 262 POINTS OR 1 TO 26330 VOLUME WAS 8175 MILLION SHARES COMPARED WITH 7712 MILLION SHARES A DAY EARLIER THE GAINS WERE FUELED BY STRONG STOCKINDEX FUTURES AND GILTS OR GOVERNMENT BONDS AS WELL AS A HIGHER OPENING ON WALL STREET BUT THE MAIN BOOST CAME FROM NEW BRITISH ECONOMIC DATA JANUARY RETAIL PRICES FELL BUT VOLUME ROSE SLIGHTLY MORE THAN EXPECTED IN EACH CASE THE NUMBER OF PEOPLE WITHOUT JOBS INCREASED BUT UNEMPLOYMENT AS A PERCENTAGE OF THE WORK FORCE WAS UNCHANGED AS WAS THE ANNUAL RATE OF INCREASE IN BRITONS' AVERAGE EARNINGS WHILE PUBLICSECTOR DEBT REPAYMENT DATA WERE POSITIVE IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 2099 POINTS TO 213661 THOUGH BOND PRICES SLIPPED AFTER THE GERMAN BUNDESBANK ALLOCATED SECURITIES REPURCHASE AGREEMENTS AT A FIXED 6 RATE STOCK PRICES REMAINED FIRM AS MANY INVESTORS BOUGHT SHARES IN CASE THE CENTRAL BANK CUTS INTEREST RATES TODAY STILL THE UNCHANGED REPO RATE WAS VIEWED AS A CLEAR HINT THAT GERMANY WOULDN'T EASE MONETARY POLICY THIS WEEK WITH FOREIGN INVESTORS CAUTIOUS TRADING GENERALLY WAS DIRECTIONLESS AND INFLUENCED BY TECHNICAL FACTORS IN PARIS STOCKS MANAGED SMALL GAINS LATE IN THE SESSION AFTER BEING HELD BACK BY DOUBTS THAT GERMANY WILL CUT INTEREST RATES TODAY IN AMSTERDAM SHARES ENDED MOSTLY HIGHER ACROSS THE BOARD LED BY MULTINATIONALS AND SUPPORTED BY STRENGTH ON OTHER EUROPEAN EXCHANGES A STEADY DOLLAR AT LOWER LEVELS IN FOREIGNEXCHANGE DEALINGS AND WALL STREET'S STEADY START IN MILAN AFTER SPENDING THE SESSION AT LOWER LEVELS EQUITIES STAGED A LATE RALLY TO FINISH HIGHER IN STOCKHOLM PRICES ADVANCED BROADLY FOR THE THIRD CONSECUTIVE SESSION LED BY BLUE CHIPS IN ZURICH STOCKS REBOUNDED 14 AS BUYERS RETURNED FOLLOWING A WEEKLONG CORRECTION THOUGH SENTIMENT REMAINED UNSETTLED BY ISSUES SUCH AS GERMAN INTERESTRATE INTENTIONS AND THE TENSIONS LINKED TO THE BOSNIAN CIVIL WAR IN MEXICO CITY FOLLOWING FIVE CONSECUTIVE SESSIONS OF LOSSES FROM PROFITTAKING STOCK PRICES ROSE AS A MEXICAN INTEREST RATE DROPPED TO ANOTHER RECORD LOW WHICH PROMPTED BARGAIN HUNTING IN HONG KONG STOCKS SLUMPED TO END NEAR THEIR LOWS AMID CONTINUED WIDE FLUCTUATIONS AND LIGHT TURNOVER PROPERTY STOCKS FARED THE WORST DROPPING 51 THE MARKET OPENED STRONGLY AFTER WALL STREET'S GOOD PERFORMANCE TUESDAY AND WAS UNDERPINNED BY HOPES AND RUMORS ABOUT HONG KONG'S NEW AIRPORT PROJECT A BONE OF CONTENTION WITH CHINA AHEAD OF THE BRITISH COLONY'S CHANGE OF CONTROL IN 1997 BUT PRICES FELL ON SELLING BY LOCALLY BASED PLAYERS WHO HAD BEEN THE BIGGEST BUYERS IN RECENT SESSIONS AND WEAKNESS IN HANG SENG INDEX FUTURES SENTIMENT ALSO WAS HURT BY PERSISTENT BEARISH FACTORS INCLUDING CONCERN ABOUT A HONG KONG INTERESTRATE INCREASE FRIDAY AND ABOUT CHINA'S ECONOMIC REFORM PLANS GIVEN THE FRAIL APPEARANCE OF CHINESE PARAMOUNT LEADER DENG XIAOPING ON TELEVISION LAST WEEK IN TAIPEI BARGAINHUNTING PUSHED SHARES UP INITIALLY FOLLOWING TUESDAY'S DECINE BUT THE MARKET ENDED DOWN 2 IN SOFT TRADING BECAUSE LARGE INVESTORS WERE SIDELINED WHILE FOREIGN FUND MANAGERS CONTINUED TO BUY DOMESTIC PARTICIPANTS REMAINED CAUTIOUS AMID HOPES FOR TAIWAN'S CENTRAL BANK TO LOOSEN ITS POSITION AND ALLOW MORE LIQUIDITY FOR INVESTMENT IN SEOUL EQUITIES SURGED 21 ON NEWS THAT NORTH KOREA AGREED TO OPEN ITS NUCLEAR SITES TO INTERNATIONAL INSPECTIONS IN BANGKOK STOCKS GAINED 11 IN LIGHT TRADING DESPITE POOR SENTIMENT LINKED TO THAI POLITICAL PROBLEMS BUYING WAS STRONGEST IN THE FINANCE BANKING AND INSURANCE SECTORS AMONG CORPORATE DEVELOPMENTS IN ZURICH SWISS BANK JUMPED 16 SWISS FRANCS OR 33 TO 506 FRANCS 34858 THE COMMERCIAL BANK'S 1993 GROUP PROFIT INCREASED 36 TO 137 BILLION FRANCS 9403 MILLION FROM A YEAR EARLIER WHEN RESULTS INCLUDED SPECIAL ITEMS OPERATING PROFIT ROSE 31 TO 918 BILLION FRANCS DIVIDENDS ARE TO BE RAISED 14 EACH TO 16 FRANCS A BEARER SHARE AND 8 FRANCS A REGISTERED SHARE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9402170101 940217 WHO'S NEWS INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO PURCHASE NY HANS PETER DAROCZI 56 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND GENERAL MANAGER OF THE INTERNATIONAL CONTAINER BUSINESS OF THIS PAPER AND FOREST PRODUCTS MANUFACTURER MR DAROCZI WAS MOST RECENTLY GENERAL MANAGER OF THAT DIVISION 9402170100 940217 WESTINGHOUSE'S ELECTRIC SUPPLY UNIT WILL BE SOLD TO CLAYTON DUBILIER & RICE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP AGREED TO SELL ITS WESTINGHOUSE ELECTRIC SUPPLY CO UNIT TO CLAYTON DUBILIER & RICE INC FOR A PACKAGE TOTALING 340 MILLION CONTINUING ITS EFFORT TO SHED NONCORE ASSETS AND REDUCE ITS HEFTY DEBT LOAD UNDER THE PLAN EXPECTED TO CLOSE MARCH 1 WESTINGHOUSE WILL RECEIVE 265 MILLION IN CASH AND 50 MILLION IN FIRSTMORTGAGE NOTES PLUS A 10 EQUITY POSITION AND FUTURE RECEIVABLES TOGETHER VALUED AT 25 MILLION IN ADDITION WESTINGHOUSE HOLDS AN OPTION TO ACQUIRE AN ADDITIONAL 10 OF THE ELECTRIC SUPPLY UNIT ACCORDING TO CLAYTON DUBILIER THE ELECTRIC SUPPLY UNIT HAS ABOUT 16 BILLION TO 17 BILLION IN ANNUAL SALES THE PRICE IS A LITTLE LOWER THAN EXPECTED SAID MAUREEN P LENTZ AN ANALYST WITH ROULSTON & CO BUT THEY WESTINGHOUSE HAVE BEEN GOING AT IT PRETTY FAST IN TERMS OF THEIR ANNOUNCED RESTRUCTURING WESTINGHOUSE ANNOUNCED PLANS TO SELL FOUR MAJOR UNITS AS PART OF ITS NOVEMBER 1992 RESTRUCTURING PLAN WHICH WAS TO RAISE AN ESTIMATED 3 BILLION SINCE THEN TWO UNITS HAVE FETCHED ABOUT 145 BILLION AND KNOLL GROUP A MAKER OF OFFICE FURNITURE HAS BEEN TAKEN OFF THE MARKET WESTINGHOUSE COMMUNITIES A REAL ESTATE DEVELOPER REMAINS FOR SALE STILL THE COMPANY'S DIVESTITURE PROGRAM FORCED BY A CALAMITOUS FORAY INTO FINANCIAL SERVICES HAS SLASHED DEBT IN HALF TO JUST UNDER 4 BILLION FROM 82 BILLION IN 1992 MOREOVER WESTINGHOUSE MAY SELL SOME ENVIRONMENTAL SYSTEMS BUSINESSES AND PART OF ITS INDUSTRIAL PRODUCTS AND SERVICES LINE MICHAEL H JORDAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTINGHOUSE HAD BEEN A PARTNER WITH NEW YORKBASED CLAYTON DUBILIER AND PARTICIPATED IN INITIAL DISCUSSIONS WITH WESTINGHOUSE CONCERNING THE ELECTRIC SUPPLY UNIT BUT A WESTINGHOUSE SPOKESMAN SAID MR JORDAN REMOVED HIMSELF FROM THE PROCESS OF SELLING THE ELECTRIC SUPPLY UNIT AFTER JOINING WESTINGHOUSE IN JULY 1993 WESTINGHOUSE SAID THE COMPANY'S BOARD APPOINTED FELLOW DIRECTORS GARY CLARK PRESIDENT OF WESTINGHOUSE AND DAVID MCLAUGHLIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ASPEN INSTITUTE TO MANAGE THE SALE OF THE UNIT MR JORDAN DIDN'T PLAY ANY ROLE AT ALL IN THE SALE SAID SPOKESMAN JAMES P SCHMITT HE DIDN'T SEE ANY BIDS UNTIL THEY WERE PRESENTED TO THE BOARD AND HE ABSTAINED FROM THE BOARD'S DETERMINATIONS CLAYTON DUBILIER A CLOSELY HELD INVESTMENT FIRM SAID IT WOULD APPOINT B CHARLES AMES A PARTNER OF THE FIRM AS CHAIRMAN OF THE ACQUIRED COMPANY MR AMES HAS AN EXTENSIVE BACKGROUND IN THE ELECTRICAL PRODUCTS INDUSTRY INCLUDING A STINT AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RELIANCE ELECTRIC CO CLEVELAND MR AMES SAID HE WANTS TO CUT COSTS BUT NOT THROUGH JOB REDUCTIONS IN ORDER TO TURN THE UNPROFITABLE BUSINESS AROUND WE WANT TO PUT EMPHASIS ON REVENUEBUILDING MR AMES SAID THIS IS ONE OF THE FEW COMPANIES IN THIS BUSINESS WITH BRANCHES ALL OVER NORTH AMERICA WE BELIEVE WE CAN BUILD THIS BUSINESS INTO A POWERHOUSE THE ELECTRIC SUPPLY UNIT WITH MORE THAN 3000 EMPLOYEES DISTRIBUTES ELECTRICAL PRODUCTS TO UTILITY GOVERNMENT CONSTRUCTION AND OTHER MARKETS MR AMES SAID THE BUSINESS HASN'T BEEN PROFITABLE FOR TWO OR THREE YEARS SHARES OF WESTINGHOUSE WHICH HAS INTERESTS IN BROADCASTING POWER GENERATION AND REAL ESTATE FELL 375 CENTS TO 14625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9402170097 940217 ROYAL INTERNATIONAL OPTICAL DALLAS ROYAL INTERNATIONAL OPTICAL INC SAID IT COMPLETED A RECAPITALIZATION THAT REDUCED ITS DEBT BY 9 MILLION AND ITS PREFERRED STOCK OBLIGATIONS BY 7 MILLION THE COMPANY SAID IT ESTABLISHED A NEW 125 MILLION REVOLVING CREDIT AND TERM LOAN AGREEMENT WITH BARCLAY'S BUSINESS CREDIT INC THE COMPANY SOLD ASSETS THAT BROUGHT ABOUT 5 MILLION IN PROCEEDS AND ISSUED 13 MILLION OF 9 CUMULATIVE PREFERRED STOCK WHILE REDEEMING 20 MILLION OF 13 PREFERRED STOCK ROYAL INTERNATIONAL OPTICAL OPERATES OPTICAL STORES IN LEASED SPACES IN DEPARTMENT STORES 9402170096 940217 CSS MAY SELL UNIT TO US CAN PHILADELPHIA PAPER AND PACKAGING MAKER CSS INDUSTRIES INC SAID IT'S IN TALKS TO SELL ITS ELLISCO INC UNIT TO US CAN CORP OF OAK BROOK ILL THE ELLISCO UNIT MAKES AND SELLS SPECIALTY METAL CONTAINERS AMONG OTHER PRODUCTS CSS SAID THE SALE WOULD GENERATE ABOUT 33 MILLION INCLUDING PROCEEDS FROM THE SALE OF STOCK AND A DIVIDEND BY ELLISCO BEFORE THE SALE THE TRANSACTION IS SUBJECT TO THE AVAILABILITY OF FINANCING AND APPROVAL BY THE COMPANIES' BOARDS AMONG OTHER CONDITIONS 9402170095 940217 CORPORATE FOCUS FIGGIE INTERNATIONAL IS EXPECTED TO SEEK CREDIT EXTENSION IN MIDST OF A CASH CRUNCH COMPANY PLANS TO REFOCUS ON CORE ACTIVITIES BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL FIGGIE INTERNATIONAL INC DEEP IN A CASH CRUNCH TODAY IS EXPECTED TO ASK ITS BANKERS TO THROW IT A FINANCIAL LIFELINE THE WILLOUGHBY OHIO OPERATOR OF SOME TWO DOZEN BUSINESSES RANGING FROM INSURANCE TO FIRE TRUCKS TO SPORTING GOODS IS SEEKING TO BORROW AN ADDITIONAL 60 MILLION ABOVE THE 150 MILLION CREDIT LINE IT HAS ALREADY EXHAUSTED ACCORDING TO A PERSON FAMILIAR WITH THE SITUATION ALTERNATIVELY THE COMPANY WILL PRESENT BANKERS WITH A PLAN TO FACTOR OR SELL OFF ITS ACCOUNTS RECEIVABLE AT A DISCOUNT THE MEETING WITH THE SYNDICATE OF BANKS LED BY BANK OF BOSTON COMES ON THE HEELS OF A FIGGIE BOARD MEETING YESTERDAY THE COMPANY SAID THAT AMONG OTHER THINGS DIRECTORS REVIEWED THE QUARTERLY DIVIDEND OF SIX CENTS A SHARE WHICH SOME ANALYSTS SAY COULD BE CUT A SPOKESMAN DECLINED TO COMMENT ABOUT THE MEETING WITH BANKERS BUT ADDED THAT FIGGIE WOULD MAKE AN ANNOUNCEMENT TODAY FIGGIE INTERNATIONAL CHAIRMAN HARRY FIGGIE JR IN HIS BESTSELLING BOOK BANKRUPTCY 1995 THE COMING COLLAPSE OF AMERICA AND HOW TO STOP IT SOUNDS THE ALARM ABOUT AMERICA'S PENCHANT FOR LIVING ON A CHAMPAGNE APPETITE AND A BEER INCOME BUT THAT'S PRECISELY THE KIND OF DIET ON WHICH MR FIGGIE'S OWN COMPANY HAS INDULGED ITSELF IN RECENT YEARS ACCORDING TO ALLEGATIONS IN A SHAREHOLDER LAWSUIT FILED BY A FORMER EXECUTIVE STAGGERING UNDER A 450 MILLION DEBT LOAD FIGGIE INTERNATIONAL ITSELF CAME PERILOUSLY CLOSE TO FILING FOR CHAPTER 11 PROTECTION LAST MONTH ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE COMPANY WENT SO FAR AS TO PREPARE CHAPTER 11 SCHEDULES FEARING THAT ASSET SALES WOULDN'T BE FAST ENOUGH TO SUPPLANT THE COMPANY'S DEPLETED CASH FIGGIE MANAGED TO PULL THROUGH THE PERIL WITH AGGRESSIVE CASH MANAGEMENT BUT NOW NEEDS CASH TO FINANCE A LONGTERM SOLUTION A FIGGIE SPOKESMAN YESTERDAY SAID THAT WHILE THE COMPANY WOULDN'T COMMENT ON HOW CLOSE IT CAME TO FILING FOR CHAPTER 11 WE'VE ACKNOWLEDGED WE HAD A TEMPORARY LIQUIDITY SQUEEZE WE THINK THE WORST IS BEHIND US FIGGIE REPORTED ITS FIRST LOSS IN 25 YEARS IN ITS 1993 THIRD QUARTER AMID A SLUGGISH ECONOMY 15 MILLION IN OPERATING LOSSES FROM FLOODING AT THREE MIDWEST PLANTS AND OPERATIONAL DIFFICULTIES IN NOVEMBER IT MORE THAN HALVED ITS QUARTERLY DIVIDEND TO SIX CENTS FROM 125 CENTS A SHARE THEN FIGGIE SAID IN EARLY JANUARY THAT IT INCURRED A SIGNIFICANT LOSS FOR THE FOURTH QUARTER AS WELL AS THE YEAR THOSE FIGURES HAVEN'T YET BEEN RELEASED IN 1992 FIGGIE HAD NET INCOME OF 283 MILLION ON SALES OF 12 BILLION FROM ITS MIX OF CONSUMER TECHNICAL INDUSTRIAL AND SERVICE BUSINESSES FIGGIE HAD 116 BILLION IN ASSETS 775 MILLION IN LIABILITIES AND NET WORTH OF 383 MILLION ACCORDING TO ITS SEPT 30 1993 BALANCE SHEET THE COMPANY IS CONSIDERING SHRINKING ASSETS TO ABOUT 800 MILLION TO 900 MILLION AND LIABILITIES TO 500 MILLION THUS RAISING EQUITY TO 400 MILLION ACCORDING TO ONE OF THE INDIVIDUALS IT HAS PUT ITS RAWLINGS SPORTING GOODS DIVISION ON THE BLOCK AND PLANS TO SPIN OFF OTHER BUSINESSES AS WELL IN ORDER TO FOCUS ON ITS CORE BUSINESSES A HANDFUL OF OTHER BUSINESSES INCLUDING ITS FIRETRUCK AND SAFETY SUPPLY AMERICA PROTECTIVECLOTHING BUSINESSES ARE LIKELY TARGETS FOR DIVESTITURE THE SPOKESMAN SAID YESTERDAY THAT THE COMPANY HADN'T CONFIRMED ANY DIVESTITURE CANDIDATES BESIDES RAWLINGS BUT MIGHT HAVE MORE INFORMATION TODAY FIGGIE HAS SAID IT WANTS TO FOCUS ON INDUSTRIAL AND MANUFACTURING OPERATIONS THAT SHARE A TECHNOLOGICAL BASE IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET FIGGIE'S CLASS A SHARES CLOSED AT 1275 APIECE UP 50 CENTS FIGGIE'S PROBLEMS CAME TO A HEAD IN DECEMBER WHEN A CASH SHORTAGE COMBINED WITH A ROUTINE SEASONAL DOWNTURN TO CREATE A CRISIS FIGGIE HAD BEEN HUMMING ALONG MAKING PROFITS YEAR AFTER YEAR UNTIL FOUNDER AND CHAIRMAN HARRY FIGGIE JR NOW 70 FELL ILL IN THE SUMMER OF 1992 THE AUTOCRATIC MR FIGGIE WHO PRIDES HIMSELF ON BEING A TOUGH BOSS NEVER DISCLOSED HIS ILLNESS TO THE PUBLIC RANKLING WALL STREET INVESTORS AND ANALYSTS I WISH I'D KNOWN HE WAS ABSENT I WOULD HAVE BEEN ABSENT ALSO SAYS SIDNEY HELLER ANALYST AT LEHMAN BROS THE COMPANY MAINTAINS HOWEVER THAT MR FIGGIE WAS IN DAYTODAY CONTACT WITH HIS SON HARRY E DOC FIGGIE III WHO WAS VICE CHAIRMAN HE NEVER RELINQUISHED CONTROL A FIGGIE SPOKESMAN SAID YESTERDAY NOTING THAT BOTH INTERNAL AND EXTERNAL LEGAL COUNSEL FELT THERE WAS NO NEED FOR DISCLOSURE BUT DURING HIS FATHER'S NEARLY 18MONTH RECOVERY FROM PNEUMONIARELATED AILMENTS THE YOUNGER DR FIGGIE 40 AND A FORMER ORTHOPEDIC SURGEON LAUNCHED A COSTLY MODERNIZATION PLAN CALLED WORLD CLASS HE SPENT MORE THAN 50 MILLION ON CONSULTANTS AND SOME 110 MILLION ON EQUIPMENT FIGGIE'S MACHINES AND FACTORIES IN FACT NEEDED UPDATING BUT THE MODERNIZATION PLAN IDLED PLANTS AND DELAYED PRODUCTION CUTTING INTO THE BOTTOM LINE THE COMPANY DECLINED TO COMMENT ON WHETHER THE PLAN CONTRIBUTED TO THE COMPANY'S LIQUIDITY CRISIS PEOPLE CLOSE TO THE COMPANY SAY DR FIGGIE HAS BEEN MOVED ASIDE FROM DAILY DECISION MAKING AND HIS FATHER IS BACK IN FULL COMMAND THE COMPANY SPOKESMAN SAID THAT WHILE THE CHAIRMAN IS IN CHARGE NOTHING HAS CHANGED IN REGARD TO THE VICE CHAIRMAN WALL STREET WOULD LIKE TO SEE MORE DRAMATIC CHANGES HOWEVER I THINK IT WOULD HELP THE COMPANY AND SHAREHOLDERS IF STRONG OUTSIDE MANAGEMENT WAS BROUGHT IN BOTH A NEW CHAIRMAN AND CHIEF EXECUTIVE SAID T EDWARD O'NEIL RESEARCH DIRECTOR AT SW RYAN & CO IN BALA CYNWYD PA BUT THE FIGGIE FAMILY CONTROLS 25 OF FIGGIE'S VOTING STOCK AND A SHAREHOLDER SUIT FILED BY A FORMER EXECUTIVE WHO WORKED FOR FIGGIE FOR A DOZEN YEARS ALLEGES THAT MOST OF THE BOARD MEMBERS HAVE CONFLICTS OF INTEREST WITH SEVERAL ALLEGED TO HAVE BEEN PAID CONSULTING FEES THE SUIT WAS FILED IN LAKE COUNTY COMMON PLEAS COURT IN LAKE COUNTY OHIO IN OCTOBER THE COMPANY SAYS THE SUIT IS WITHOUT MERIT AND HAS FILED FOR A DISMISSAL AND HAS SAID IT WON'T DISCUSS INDIVIDUAL ALLEGATIONS IN THE SUIT BUT THE SUIT RAISES QUESTIONS ABOUT THE RELATIONSHIP BETWEEN FIGGIE AND THE PRIVATE FAMILY CORPORATION CLARKRELIANCE WHICH IS IN SOME OF THE SAME BUSINESSES AMONG OTHER THINGS THE SUIT ALLEGES THAT KEY FIGGIE PERSONNEL WERE DIVERTED TO CLARKRELIANCE THE SUIT ALSO ALLEGES THAT FIGGIE OPERATED A 26 MILLION GULFSTREAM IV AIRCRAFT FOR FAMILY EXCURSIONS AND MOVED ITS HEADQUARTERS FROM OHIO TO VIRGINIA TO LAND PURCHASED FROM A DIRECTOR THEN BACK TO OHIO WITHIN A PERIOD OF A FEW YEARS THE ALLEGED REASON THE ELDER MR FIGGIE HAD BEEN DENIED ACCESS TO AN OHIO COUNTRY CLUB AND WANTED TO ENTER THE INNER SOCIAL CIRCLES OF RICHMOND'S ARISTOCRATIC ELITE 9402170094 940217 POLITICS & POLICY COST OF CLINTON'S ANTICRIME PROPOSALS IS BUDGET TIME BOMB' ANALYST SAYS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WANTS CRIMEFIGHTING TO TAKE A BIGGER BITE OUT OF THE FEDERAL BUDGET THAN IN THE PAST BUT EVEN HIS PROPOSED 21 INCREASE WON'T BEGIN TO COVER THE COSTS OF THE TOUGH THREE STRIKES AND YOU'RE OUT CRIME BILL IT'S A TIME BOMB IN THE BUDGET SAID ADELE HARRELL DIRECTOR OF THE PROGRAM ON LAW AND BEHAVIOR OF THE URBAN INSTITUTE A WASHINGTONBASED THINK TANK WITH PUBLIC CONCERN ABOUT CRIME HIGH DEMOCRATS AND REPUBLICANS ARE TRYING TO OUTDO THE OPPOSITION WITH TOUGH PROPOSALS THE SENATE ALREADY HAS PASSED A MULTIBILLIONDOLLAR CRIME BILL THAT INCLUDES A PROVISION THAT WOULD PUT THIRDTIME VIOLENT OFFENDERS BEHIND BARS FOR LIFE BUT NO ONE HAS GOTTEN A HANDLE ON THE LONGTERM COSTS OF INCARCERATIONS RESULTING FROM SUCH MANDATORY SENTENCES AND IN FACT THE FEDERAL PRISON SYSTEM IS ALREADY STRUGGLING TO DEAL WITH DRUG OFFENDERS FACING MANDATORY SENTENCES THAT HAVE BEEN IMPOSED SINCE THE MID1980S MANDATORY LIFE SENTENCES ARE LIKELY TO BE COSTLY AND INEFFECTIVE IN REDUCING CRIME MS HARRELL SAID IN AN INTERVIEW BECAUSE MOST VIOLENT CRIME IS COMMITTED BY THE YOUNG ACCORDING TO JUSTICE DEPARTMENT STATISTICS A STUDY OF 32 COUNTIES SHOWED THAT 67 OF THE PROBATIONERS WHO REPEAT VIOLENT CRIMES WERE UNDER AGE 30 YOUNG PRISONERS WHO WOULD BE BEHIND BARS LONG PAST THE TIME WHEN THEY ARE LIKELY TO CONTINUE SAY ARMED ROBBERY COULD COST SOME 25000 A YEAR FOR PROBABLY ANOTHER 50 YEARS THAT DOESN'T EVEN CONSIDER THE HEALTHCARE COSTS THAT WOULD ARISE FOR AGING INMATES IT'S GOING TO RISE UP LIKE SOCIAL SECURITY IN THE BUDGET SHE SAID AND YOU'LL HAVE THIS ENORMOUS LIABILITY HANGING OUT THERE OTHERS HAVE RAISED CONCERNS ABOUT MANDATORY SENTENCES PHILIP HEYMANN WHO STEPPED DOWN FROM HIS JOB AS DEPUTY ATTORNEY GENERAL LAST WEEK TOLD CABLE NEWS NETWORK YESTERDAY THAT IT'S POLITICALLY SUICIDAL TO OPPOSE QUICKFIX ANTICRIME MEASURES THE THREESTRIKES PROVISION WOULD COST VASTLY MORE THAN IT IS WORTH IN TERMS OF LAW ENFORCEMENT HE ADDED ASKED ABOUT MR HEYMANN'S CRITICISMS WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID YESTERDAY HE'S A PRIVATE CITIZEN HE CAN SAY WHAT HE WANTS BUT SHE ADDED THAT PRESIDENT CLINTON HOPES TO KEEP THE THREESTRIKES PROVISION AS NARROW AS POSSIBLE TO TARGET ONLY REPEAT VIOLENT OFFENDERS THE BUDGET AND THE FEDERAL PRISON SYSTEM ARE STILL TRYING TO CATCH UP WITH THE MANDATORY SENTENCING OF DRUG OFFENDERS EVEN BEFORE THE NEW CRIME BILL THE BUDGET PROJECTS THAT SPENDING ON BUILDING AND MAINTAINING FEDERAL PRISONS WILL RISE 68 FROM FISCAL 1994 TO 37 BILLION IN FISCAL 1999 MUCH OF THAT WILL BE TO HOUSE THE NONVIOLENT FIRSTTIME DRUG OFFENDERS WHO RECEIVE MANDATORY SENTENCES LAST WEEK THE JUSTICE DEPARTMENT RELEASED A STUDY THAT SHOWED THAT 16316 OR 21 OF ALL FEDERAL PRISONERS WERE DOING TIME FOR LOWLEVEL DRUG OFFENSES THIS CATEGORY CONSISTS OF FIRSTTIME OFFENDERS WHOSE DRUG CRIME WASN'T VIOLENT OR DIDN'T INVOLVE A LARGE QUANTITY OF ILLEGAL DRUGS PAUL MCNULTY HEAD OF POLICY AT THE JUSTICE DEPARTMENT UNDER PRESIDENT BUSH SAID THE COSTS AREN'T AS IMPORTANT AS THE CRIME CURRENTLY THERE ARE 92 FEDERAL PRISONS WHICH MAY RISE TO 128 BY THE END OF THE DECADE EVEN IF IT MEANS 150 FEDERAL PRISONS I DON'T THINK THAT'S PARTICULARLY FRIGHTENING OR TROUBLING WE HAVE TO HAVE WHAT IT TAKES TO DEAL WITH VIOLENT CRIMINALS WE HAVE OVERALL THE CLINTON BUDGET PROPOSES ANTICRIME SPENDING OF 185 BILLION FOR FISCAL 1995 WHICH WILL BEGIN OCT 1 A 21 INCREASE FROM THE CURRENT YEAR ONE WIDELY APPLAUDED PART OF THE BUDGET WOULD INCREASE STATE AND LOCAL CRIME ASSISTANCE TO 28 BILLION FROM 700 MILLION IN THE BUDGET THAT PUT STRICT CAPS ON SPENDING 24 BILLION OF THAT WAS TO COME FROM THE CRIME CONTROL TRUST FUND THE SOURCE OF THE TRUST FUND MONEY IS TO BE SAVINGS FROM THE CUTTING OF FEDERAL EMPLOYMENT THE BIG QUESTION IS WHETHER THAT IS GOING TO HAPPEN MS HARRELL SAID THE 1995 BUDGET ALSO CREATES 100 MILLION IN DISCRETIONARY GRANTS FOR TOWNS TO FINANCE YOUTH PROJECTS OR HIRE MORE POLICE OR TAKE OTHER ACTIONS TO PREVENT CRIME BUT MS HARRELL FEARS THAT DISTRESSED INNER CITIES WON'T BE ABLE TO WRITE THE BEST GRANTS TO SNARE THE FEDERAL FUNDS WHILE MOREAFFLUENT AREAS WILL PURSUE THE FUNDS MORE SUCCESSFULLY 9402170093 940217 BUSINESS BRIEF ASHLAND COAL INC TALKS WITH ARCH MINERAL OVER MERGER ARE BROKEN OFF ASHLAND COAL INC AND ARCH MINERAL CORP BROKE OFF TALKS CONCERNING A POSSIBLE MERGER THAT WOULD HAVE PRODUCED THE NATION'S FIFTHLARGEST COAL PRODUCER A SPOKESWOMAN FOR ASHLAND COAL SAID THE TWO PARTIES COULD NOT AGREE ON A VALUATION SHE DECLINED TO GIVE DETAILS CONCERNING THE BREAKDOWN A SPOKESMAN FOR ST LOUISBASED ARCH MINERAL DECLINED TO COMMENT ASHLAND OIL INC OF ASHLAND KY WHICH OWNS A 38 STAKE IN ASHLAND COAL AND A 50 STAKE IN ARCH MINERAL SAID IT WAS VERY DISAPPOINTED THAT NEGOTIATIONS WERE UNSUCCESSFUL 9402170092 940217 BUSINESS BRIEF ZURICH REINSURANCE CENTRE HOLDINGS PROFIT POSTED FOR 4TH PERIOD AGAINST LOSS A YEAR EARLIER ZURICH REINSURANCE CENTRE HOLDINGS INC SWUNG FROM A YEAREARLIER LOSS IN THE FOURTH QUARTER THE NEW YORK REINSURANCE COMPANY EARNED 833000 OR THREE CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 39 MILLION OR 23 CENTS A SHARE THE COMPANY HAD A LOSS OF 188000 ON OPERATIONS COMPARED WITH A 44 MILLION LOSS A YEAR EARLIER EARNINGS GROWTH CAME FROM INVESTING THE MONEY RAISED BY LAST YEAR'S PUBLIC STOCK OFFERING AND A DEBT OFFERING THE COMPANY ESTIMATES LOSSES FROM THE LOS ANGELES EARTHQUAKE WILL NOT EXCEED 5 MILLION 9402170091 940217 SMALL STOCK FOCUS STOCKS CLIMB BUT REMAIN BELOW PEAKS REACHED EARLIER IN THE DAY'S SESSION BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS CLIMBED HIGHER BUT REMAINED BELOW THEIR MORNING PEAKS BEFORE BONDS PULLED BACK FROM A MODEST ADVANCE THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS ROSE 143 OR 054 TO END AT 26596 THE NASDAQ COMPOSITE INDEX ADDED 250 OR 032 TO 79262 ADVANCING ISSUES PUSHED AHEAD OF NASDAQ DECLINERS 1750 TO 1367 WHILE NASDAQ NATIONAL MARKET VOLUME ROSE TO 278631100 SHARES FROM 246778200 TUESDAY CHOPPY ACTION ON THE BIG BOARD ALSO TOOK A TOLL ON SMALLER ISSUES THE DOW JONES INDUSTRIAL AVERAGE BOUNCED UP AND DOWN IN ABOUT A 25POINT RANGE FINISHING UP NINE POINTS AT 393727 SOME SMALLER SEMICONDUCTOR AND SOFTWARE STOCKS ROSE ON THE HEELS OF GOOD EARNINGS FROM APPLIED MATERIALS WHICH GAINED 2 TO 49 1/2 THE SANTA CLARA CALIF CHIP MAKER POSTED FISCAL FIRSTQUARTER OPERATING EARNINGS OF 45 CENTS A SHARE UP FROM 18 CENTS A YEAR EARLIER ALSO KLA INSTRUMENTS CORP SAN JOSE CALIF CLIMBED 2 1/4 TO 36 3/4 BOLT BERANEK & NEWMAN INC CAMBRIDGE MASS ADDED 1/2 TO 14 7/8 ON THE BIG BOARD AND CYPRESS SEMICONDUCTOR CORP SAN JOSE CALIF ROSE 1/2 TO 17 7/8 ALSO ON THE NEW YORK STOCK EXCHANGE IN IPO ACTION MARTIN MARIETTA MATERIALS' OFFERING WAS PRICED AFTER THE CLOSE OF TRADING AT 23 A SHARE OR 2 ABOVE ITS ORIGINAL 19 TO 21 A SHARE ANALYSTS HAVE SAID THE COMPANY SHOULD BE A STRONG PERFORMER AMONG POPULAR SMALLCAP CYCLICAL STOCKS THIS YEAR COVENTRY A NASHVILLE TENN HEALTH MAINTENANCE ORGANIZATION DECLINED 3/4 TO 52 1/8 FOLLOWING A SMITH BARNEY SHEARSON DOWNGRADE TO OUTPERFORM FROM BUY MAXICARE HEALTH PLANS LOS ANGELES ROSE 7/8 TO 13 1/2 AFTER A REPORT ON CNBC THAT SAID PHYSICIAN CORP OF AMERICA HAS ACQUIRED NEARLY 5 OF MAXICARE AND MIGHT TRY TO TAKE OVER THE COMPANY PHYSICIAN OF MIAMI EASED 1/2 TO 28 1/4 OPTICAL DATA SYSTEMS GAINED 1 1/2 TO 14 ON IMPROVED FOURTHQUARTER EARNINGS OF 23 CENTS A SHARE IN THE YEAREARLIER QUARTER THE RICHARDSON TEXAS COMPUTERNETWORKING CONCERN POSTED PROFIT OF 21 CENTS THERE'S STILL A LOT OF MONEY AROUND AND VERY GOOD DEMAND SAID LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL GROUP HE SAID INVESTORS HELD BACK TO SEE IF STOCKS WOULD BECOME CHEAPER AND THEN DID SOME LASTMINUTE BUYING BEFORE THE CLOSE SOME OBSERVERS SAID MARKET PLAYERS ALSO GREW HESITANT BECAUSE OF ANOTHER SLIDE IN THE DOW JONES UTILITY AVERAGE WHICH FELL 270 POINTS TO 21276 ITS LOWEST LEVEL SINCE JULY 1 1992 MANY ANALYSTS SAY DECLINES IN THE UTILITY INDEX AUGUR A BROADER MARKET PULLBACK GREG KUHN WHO HEADS KUHN ASSET MANAGEMENT SAID THE FACT THAT WALL STREET IS CONCERNED ABOUT LOSSES IN THE UTILITY AVERAGE IS A GOOD SIGN SINCE IT BREEDS CAUTION ALWAYS A POSITIVE FOR STOCKS HE SAID A MORE TROUBLESOME SIGN WOULD BE IF WE GET TO A POINT WHERE EVERYBODY SAYS IT DOESN'T MATTER AND THEY IGNORE ITS WARNING ACCORDING TO MR KUHN YESTERDAY'S SEESAW SESSION IS THE MARKET'S WAY OF BUILDING A LAUNCHING PAD FOR THE NEXT MOVE UP SINCE FEB 4 WHEN THE FEDERAL RESERVE SAID IT WOULD TIGHTEN MONETARY POLICY AND EQUITIES TUMBLED A NORMAL BACKING AND FILLING HAS OCCURRED HE SAID SCICLONE PHARMACEUTICALS FELL 1 TO 19 5/8 THE SAN MATEO CALIF COMPANY CITED A DELAY IN ITS BID TO OBTAIN MARKETING APPROVAL FOR THYMOSIN ALPHA 1 IN CHINA THE DRUG IS USED TO TREAT HEPATITIS B NEUTROGENA FELL 1 1/2 TO 19 3/4 AFTER POSTING FISCAL FIRSTQUARTER EARNINGS OF 18 CENTS A SHARE BELOW ANALYSTS' FORECASTS OF ABOUT 22 CENTS IN THE YEAREARLIER PERIOD THE LOS ANGELES MAKER OF SKIN AND HAIRCARE PRODUCTS POSTED OPERATING EARNINGS OF 17 CENTS CALGENE GAINED 3/4 TO 12 1/2 THE DAVIS CALIF DEVELOPER OF GENETICALLY ENGINEERED PLANTS AND PLANT PRODUCTS SAID THE US DEPARTMENT OF AGRICULTURE'S ANIMAL PLANT HEALTH INSPECTION SERVICE APPROVED ITS PETITION FOR ITS BXN BROMOXYNIL RESISTANT COTTON VARIETIES CHECKERS DRIVEIN RESTAURANTS CLEARWATER FLA DROPPED 1 1/2 TO 8 3/4 FOLLOWING ITS RELEASE OF FOURTHQUARTER EARNINGS OF SEVEN CENTS A SHARE ON CHARGES THAT MATCHED THE NET INCOME A YEAR EARLIER A DISAPPOINTING EARNINGS OUTLOOK PUSHED HANDLEMAN 1 3/4 LOWER TO 11 1/2 ON THE BIG BOARD THE TROY MICH DISTRIBUTOR OF PRERECORDED MUSIC SAID IT EXPECTS TO REPORT FISCAL THIRDQUARTER NET OF 29 CENTS TO 31 CENTS A SHARE DOWN FROM 43 CENTS A YEAR EARLIER A DONALDSON LUFKIN & JENRETTE DOWNGRADE TO NEUTRAL FROM MODERATELY ATTRACTIVE LOPPED 1 3/4 FROM DR HORTON'S STOCK PRICE SENDING IT DOWN TO 17 THE ARLINGTON TEXAS COMPANY CONSTRUCTS AND SELLS SINGLEFAMILY HOMES TODAY THE RELEASE OF JANUARY CONSUMER PRICES WILL BE THE FOCAL POINT THERE'S A CERTAIN LEVEL OF ANXIETY HEADING INTO THESE REPORTS ALL THE FED'S WAITING FOR IS TO CONFIRM THEIR PREEMPTIVE STRIKE ON RAISING INTEREST RATES MR KUHN SAID 9402170090 940217 STARTER POSTS PLUNGE IN 4THQUARTER NET SEES WEAK FIRST HALF NEW HAVEN CONN SPORTSAPPAREL MAKER STARTER CORP WHICH ENJOYED A PRICE RUNUP A YEAR AGO WHEN IT WENT PUBLIC REPORTED SHARPLY LOWER EARNINGS FOR THE FOURTH QUARTER AND PROJECTED CONTINUED WEAK RESULTS FOR THE FIRST HALF OF 1994 STARTER SAID FOURTHQUARTER NET INCOME FELL 53 TO 18 MILLION OR SEVEN CENTS A SHARE FROM THE YEAREARLIER PRO FORMA 38 MILLION OR 14 CENTS A SHARE ALTHOUGH SALES ROSE 74 TO 776 MILLION FROM 722 MILLION A YEAR EARLIER A SPOKESMAN SAID PROFIT MARGINS IN THE QUARTER WERE HURT DUE TO INCREASED DISTRIBUTION COSTS AND THE INABILITY OF KOREAN OUTERWEAR MANUFACTURERS TO OBTAIN EXPORT QUOTAS WITHIN REASONABLE TIME FRAMES AND AT REASONABLE PRICES STARTER HAD REPORTED EARNINGS GAINS AS RECENTLY AS THE THIRD QUARTER WHEN NET INCOME ROSE TO 156 MILLION OR 59 CENTS A SHARE FROM PRO FORMA 126 MILLION OR 47 CENTS A SHARE AND SALES ROSE TO 1487 MILLION FROM 1072 MILLION STARTER SAID ITS PERFORMANCE THROUGH THE FIRST SIX MONTHS OF THIS YEAR WILL NOT BE AS STRONG AS A YEAR AGO THE COMPANY PREVIOUSLY HAD SAID FIRSTQUARTER RESULTS WOULD TRAIL YEAREARLIER FIGURES DUE TO HIGHER COSTS AND SALE OF LATEARRIVING INVENTORY AT LOWER THAN NORMAL MARGINS AFTER THE FORECAST A SHAREHOLDER SUED THE COMPANY ALLEGING IT HAD FAILED TO DISCLOSE PROBLEMS WITH WINTER OUTERWEAR PRODUCTS AND A SPOKESMAN YESTERDAY SAID IT EXPECTS A SECOND SUIT STARTER'S SHARES WHICH WENT PUBLIC AT 2150 IN APRIL 1993 AND TRADED AS HIGH AS 28 ON THE FIRST DAY HAVE SLUMPED AND CLOSED YESTERDAY AT 13625 A SHARE UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE FISCAL YEAR NET INCOME ON A PRO FORMA BASIS ROSE 11 TO 264 MILLION OR 99 CENTS A SHARE FROM 238 MILLION OR 90 CENTS A SHARE A YEAR EARLIER SALES ROSE 26 TO 356 MILLION FROM 2827 MILLION A YEAR EARLIER 9402170089 940217 MUTUALFUND INDUSTRY PANEL TO LOOK AT RULES ON MANAGERS' PERSONAL TRADES BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THE MUTUALFUND INDUSTRY RESPONDING TO SCRUTINY BY LEGISLATORS AND REGULATORS HAS SET UP A PANEL TO EXAMINE FUND COMPANIES' RULES ON PERSONAL TRADING BY FUND MANAGERS THE GROUP COMPRISING SIX HIGHLEVEL FUND INDUSTRY EXECUTIVES WILL REVIEW AND EVALUATE THE ADEQUACY OF CURRENT CODES OF CONDUCT FOR PERSONAL TRADING BY MUTUALFUND EMPLOYEES IT MAY ALSO DEVELOP RECOMMENDATIONS FOR CHANGES IN THOSE STANDARDS THE INVESTMENT COMPANY INSTITUTE THE NATIONAL MUTUALFUND TRADE GROUP ANNOUNCED WE WILL ASSESS THE ADEQUACY OF CURRENT STANDARDS WITH AN EYE TOWARD ANY NEEDED CHANGES IN MUTUAL FUNDS' CODES OF ETHICS SAID RONALD P LYNCH MANAGING PARTNER OF LORD ABBETT & CO AND CHAIRMAN OF THE ICI THE ISSUE OF FUNDMANAGER PERSONAL TRADING BROKE INTO PUBLIC CONSCIOUSNESS WHEN JOHN KAWESKE A WELLKNOWN FUNDMANAGER WAS FIRED IN JANUARY BY INVESCO FUNDS GROUP DENVER FOR ALLEGEDLY VIOLATING INVESCO RULES BY FAILING TO REPORT 10 TO 20 PERSONAL TRADES MUTUALFUND MANAGERS ARE ALLOWED TO TRADE FOR THEIR OWN ACCOUNT BUT THEY ARE PROHIBITED FROM ENGAGING IN SELFDEALING IN THEIR TRADES AND FUNDMANAGEMENT FIRMS ARE REQUIRED TO ENFORCE CODES OF CONDUCT SUPERVISING PERSONAL TRADING LAST WEEK THE SECURITIES AND EXCHANGE COMMISSION ASKED 30 FUND GROUPS TO PROVIDE SWEEPING DETAILS OF PERSONAL TRADING BY THEIR FUND MANAGERS THE SEC REQUEST WAS IN PART A RESPONSE TO INQUIRIES BY LEGISLATORS SUCH AS REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE MANY FUNDINDUSTRY EXECUTIVES GRIPE THAT THEIR MONEY MANAGERS ARE ALREADY HELD TO STRICTER STANDARDS REGARDING PERSONAL TRADES THAN MONEY MANAGERS IN DIFFERENT INDUSTRIES WE REMAIN COMMITTED TO ANY ENHANCEMENT OF THOSE STANDARDS THAT SEEMS ADVISABLE MATTHEW FINK PRESIDENT OF THE ICI SAID IN AN APPARENT ATTEMPT TO DEFLECT SOME OF THE HEAT THE INDUSTRY HAS BEEN GETTING ON THE ISSUE OF FUNDMANAGER TRADING MR FINK WROTE TO REP MARKEY IT IS MY HOPE THAT THE WORK OF THE ADVISORY GROUP ALSO WILL ASSIST IN THE FORMULATION OF RECOMMENDATIONS REGARDING OTHER UNREGULATED OR LESS REGULATED MONEY MANAGERS OUTSIDE THE FUND INDUSTRY REP MARKEY HAS ALSO EXPRESSED CONCERN ABOUT PERSONALTRADING STANDARDS AMONG OTHER MONEY MANAGERS THE MEMBERS OF THE ICI ADVISORY GROUP ARE MR LYNCH OF LORD ABBETT CHARLES A FIUMEFREDDO CHAIRMAN AND CEO DEAN WITTER INTERCAPITAL INC JON S FOSSEL PRESIDENT AND CEO OPPENHEIMER MANAGEMENT CORP ROBERT H GRAHAM PRESIDENT AIM ADVISORS INC ROBERT C POZEN MANAGING DIRECTOR AND GENERAL COUNSEL FMR CORP MANAGER OF THE FIDELITY FUNDS AND JAMES S RIEPE MANAGING DIRECTOR T ROWE PRICE ASSOCIATES INC THE GROUP HOPES TO FINISH ITS WORK BY MAY 13 WHEN IT WILL MAKE ITS FINDINGS AND RECOMMENDATIONS PUBLIC 9402170088 940217 MARKETING & MEDIA DISNEY EXPLORES POSSIBILITY OF FORMING A CRUISE LINE TIED TO ITS THEME PARKS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO IS CONSIDERING LAUNCHING ITS OWN CRUISESHIP LINE PERHAPS BUYING TWO OR MORE VESSELS AND OFFERING VACATION PACKAGES TIED TO ITS THEME PARKS WE WANT TO EXPLORE THE POTENTIAL OF THE CRUISE BUSINESS SAID DISNEY SPOKESMAN JOHN DREYER OBVIOUSLY TOUR AND TRAVEL IS A MAJOR COMPONENT OF OUR BUSINESS THE PLANS COME AS DISNEY IS WINDING UP A 10YEAR RELATIONSHIP WITH DIAL CORP'S PREMIER CRUISE LINES WHICH OFFERS FAMILY CRUISES IN COMBINATION WITH TRIPS TO WALT DISNEY WORLD UNDER THAT ARRANGEMENT WHICH EXPIRES MARCH 31 PREMIER HAD PAID DISNEY TO BILL PREMIER AS THE OFFICIAL CRUISE LINE OF WALT DISNEY WORLD AND TO USE DISNEY CHARACTERS ABOARD ITS THREE SHIPS THE COMPANIES DECIDED TO PART WAYS LAST FALL AFTER PREMIER TRIED TO NEGOTIATE MORE FAVORABLE TERMS AND DISNEY HAS SINCE FAILED TO REACH AGREEMENT WITH OTHER COMPANIES TO PICK UP THE OFFICIAL CRUISE LINE BUSINESS IT WILL COST DISNEY ABOUT 300 MILLION FOR EACH 2000PASSENGER SHIP IT WOULD NEED TO START ITS OWN OPERATION THE COMPANY IS SAID TO BE SOLICITING BIDS FOR TWO SHIPS IN THE 70000 TON 1000CABIN RANGE AND CONSTRUCTION COULD BEGIN WITHIN THE NEXT FEW MONTHS ACCORDING TO THE INDUSTRY TRADE PUBLICATION TRAVEL WEEKLY I'VE TALKED TO SHIPYARD EXECUTIVES IN EUROPE AND THEY'VE CONFIRMED THE VISITS FROM DISNEY EXECUTIVES ADDED OIVIND MATHISEN EDITOR OF NEW YORKBASED CRUISE INDUSTRY NEWS THEY'RE SERIOUS ABOUT IT DISNEY DECLINED TO GIVE SPECIFICS ABOUT THE PLANS SAYING ONLY THAT IT IS EXPLORING ALL POSSIBILITIES MIKE REININGER VICE PRESIDENT OF PRODUCT DEVELOPMENT AT THE DISNEY DEVELOPMENT CO SUBSIDIARY IS HEADING THE COMPANY'S INVESTIGATION OF THE CRUISELINE BUSINESS THOUGH DISNEY DOESN'T HAVE ANY EXPERTISE WITH CRUISES EXCEPT CARIBBEAN ONES WITH ROBOTIC PIRATES OBSERVERS THINK THE VENTURE IS A NATURAL EXTENSION OF THE COMPANY'S THEMEPARK AND RESORT BUSINESS WITH A CRUISE SHIP YOU'RE LOOKING AT A MODIFIED HOTEL BUSINESS MERRILL LYNCH ANALYST HAROLD VOGEL SAID THEY SHOULDN'T HAVE ANY DIFFICULTY DOING THAT BRUCE NIERENBERG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN FAMILY CRUISES IN MIAMI AND A COFOUNDER OF PREMIER CRUISE LINES SAID HE THINKS DISNEY'S ENTRY INTO THE BUSINESS WOULD HELP HIS OWN EFFORTS TO GET MORE FAMILIES ONTO CRUISE SHIPS WITH DISNEY BEING THE LARGEST TOURISM MARKETER IN THE US IT'S A REAL ADVANTAGE FOR THIS INDUSTRY MR NIERENBERG SAID THEY AREN'T GOING TO TAKE CUSTOMERS AWAY FROM ME THEY'RE GOING TO CREATE CUSTOMERS 9402170087 940217 WHO'S NEWS INTERNATIONAL TOTALIZATOR SYSTEMS INC INTERNATIONAL TOTALIZATOR SYSTEMS INC CARLSBAD CALIF FREDERICK A BRUNN EXECUTIVE VICE PRESIDENT WAS PROMOTED TO PRESIDENT OF THIS PROVIDER OF LOTTERY WAGERING AND TICKETING EQUIPMENT AND SERVICES MR BRUNN 49 YEARS OLD SUCCEEDS JAMES T WALTERS 61 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY ALSO ELECTED TWO NEW DIRECTORS TO THE BOARD EXPANDING IT TO NINE MEMBERS THEY ARE M MARK MICHALKO 39 WHO WAS ALSO NAMED VICE PRESIDENT OF BUSINESS DEVELOPMENT AND TAN SRI DATO VINCENT TAN 42 GROUP CHIEF EXECUTIVE OFFICER OF BERJAYA GROUP BHD SEPARATELY THE COMPANY SAID IT INTENDS TO CHANGE ITS NAME TO INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS INC AT ITS ANNUAL MEETING IN MAY PENDING SHAREHOLDER APPROVAL 9402170086 940217 LETTERS TO THE EDITOR IN DEFENSE OF MANAGED CARE IN HIS ATTACK ON KAISER PERMANENTE HIGH PRICE OF MANAGED CARE EDITORIAL PAGE JAN 18 STEVEN SALERNO MAKES SOME GENERALIZATIONS THAT ARE FALSE DISTORTS OTHER FIGURES AND SPRINKLES IN WHAT HAS TO BE BIASED TESTIMONY FROM A FEW MALPRACTICE LAWYERS FIRST THERE IS NOTHING INAPPROPRIATE ABOUT THE APPLICATION OF TOTAL QUALITY MANAGEMENT USING STATISTICS OR WEIGHING PROBABILITIES IN MEDICINE ON THE CONTRARY MANY LEADING HOSPITALS ARE ADOPTING TQM METHODS WITH GOOD RESULTS TQM RESTS ON THE INSIGHT THAT FAR MORE OFTEN THAN NOT IN MEDICAL CARE QUALITY AND ECONOMY GO HAND IN HAND THE CORRECT DIAGNOSIS THE APPROPRIATE PROCEDURE DONE BY A PROFICIENT PRACTITIONER ARE BEST FOR THE PATIENT'S HEALTH AND POCKETBOOK MISTAKES ARE COSTLY LEADING TO THE NEED FOR MORE COSTLY CARE SECOND MR SALERNO REPORTS THAT A RECORD 62700 SUBSCRIBERS DEFECTED FROM KAISER IN 1992 THAT'S LESS THAN 1 OF TOTAL MEMBERSHIP NOT BAD FOR ANY SERVICE ORGANIZATION AND SOME OF THE DEFECTORS PROBABLY DID SO BECAUSE OF SUCH THINGS AS A CHANGE OF RESIDENCE THIRD HE DESCRIBES ENDLESS WAITS FOR APPOINTMENTS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM CALPERS WHICH HAS MORE THAN 920000 BENEFICIARIES DOES A CONSUMER EXPERIENCE SURVEY EVERY OTHER YEAR ONE QUESTION IN THE 1991 SURVEY WAS WHAT WAS THE LONGEST TIME IT TOOK YOU TO GET AN APPOINTMENT WITH A DOCTOR FOR YOUR URGENT PROBLEM THE PERCENTAGE RESPONDING SAME DAY WAS 647 FOR KAISER NORTH 664 FOR KAISER SOUTH BOTH MUCH BETTER THAN THE AVERAGE OF 534 FOR ALL HEALTH PLANS IN FACT KAISER SOUTH WAS THIRD BEST OF 25 HEALTH PLANS FOURTH THE ATRISK COMPENSATION THAT AMOUNTS TO A FEW PERCENTAGE POINTS OF SALARY AND THAT IS BASED ON A POOL OF THOUSANDS OF DOCTORS IS TOO SMALL TO MOTIVATE A DOCTOR TO DENY A NEEDED TEST ITS SIGNIFICANCE IS MAINLY SYMBOLIC THAT DOCTORS SHOULD HAVE AN INTEREST IN HOLDING DOWN HOSPITAL COSTS FAILURE TO ORDER A NECESSARY TEST IS LIKELY TO INCREASE HOSPITAL COSTS FIFTH CASES LIKE THE UNFORTUNATE ONES MR SALERNO REPORTS HAPPEN IN ALL FORMS OF MEDICAL CARE IN MEDICINE THERE IS MUCH UNCERTAINTY MUCH NEED FOR JUDGMENT SOME OF WHICH IS BOUND TO PROVE WRONG IN HINDSIGHT CITING A FEW ANECDOTES TELLS US NOTHING ABOUT KAISER'S BATTING AVERAGE THE TESTIMONY OF A FEW MALPRACTICE ATTORNEYS WHO SEE ONLY CASES GONE BAD AND WHOSE BUSINESS IS IMPUGNING HEALTH CARE PROVIDERS IS BOUND TO BE BIASED MR ENTHOVEN A PROFESSOR AT STANFORD UNIVERSITY IS A CONSULTANT TO KAISER PERMANENTE AMONG OTHER CLIENTS I HAVE PRACTICED MY SPECIALTIES OF PEDIATRICS AND PEDIATRIC NEPHROLOGY AT KAISER PERMANENTE FOR OVER 14 YEARS I HAVE NEVER SEEN A PATIENT'S CARE PUT AT RISK BECAUSE OF COST AS AN EXAMPLE SEVERAL YEARS AGO I CARED FOR A NEWBORN WITH A SEVERE LUNG CONDITION UNFORTUNATELY THE STANDARD THERAPY VENTILATOR AND OXYGEN DID NOT SEEM TO BE WORKING THERE WAS A NEW AND VERY EXPENSIVE THERAPY AVAILABLE AT ONLY A FEW MEDICAL CENTERS IN THE COUNTRY THE TREATMENT IS CALLED ECMO EXTRACORPORAL MEMBRANE OXYGENATION THE CLOSEST MEDICAL CENTER THAT COULD PROVIDE THIS WAS MORE THAN 1000 MILES AWAY WHEN I ASKED MY SUPERVISORS AT KAISER PERMANENTE WHETHER I COULD SEND THE BABY THERE THEY APPROVED ON THE SPOT SENDING THE BABY BY PRIVATE PLANE FOR THE TREATMENT NO PHYSICIAN OR HEALTH CARE SYSTEM IS ABOVE MAKING ERRORS IN JUDGMENT WE ALL FAIL AT TIMES BUT TO IMPLY THAT KAISER PERMANENTE IS RUN BY ROTATING PHYSICIANS WHO AREN'T CAREFUL OR CARING IS JUST NOT TRUE I AM SURROUNDED BY COLLEAGUES WHO EXEMPLIFY THE HIGHEST VALUES I ASSOCIATE WITH BEING A PHYSICIAN AT THIS POINT IN OUR COUNTRY'S STRUGGLE TO FIND A COMPREHENSIVE AND CARING HEALTH CARE POLICY THE 50 YEARS' EXPERIENCE OF KAISER PERMANENTE IS NOT A BAD PLACE TO START AS ONE OF THE ATTORNEYS QUOTED AND REFERRED TO IN MR SALERNOS' ARTICLE I WOULD LIKE TO EMPHASIZE THAT IT IS MORE OFTEN THE SYSTEM ITSELF RATHER THAN THE COMPETENCE OF THE INDIVIDUAL HMO PHYSICIANS THAT COMPROMISES THE QUALITY OF CARE RECEIVED BY HMO PATIENTS WITH COST CONTAINMENT AS THE CONTROLLING MANTRA FOR MANAGED CARE IT IS NOT SURPRISING THAT HMO PATIENTS WHO NEED SCREENING TESTS DIAGNOSTIC PROCEDURES AND/OR MEDICAL TREATMENT UNHAPPILY FIND THEMSELVES AT CROSSPURPOSES WITH THE VERY HEALTH CARE PROVIDERS WHOM THEY HAD TRUSTED FOR STATEOFTHEART MEDICAL CARE IN THIS TUGOFWAR THE PATIENT LOSES SUCH COST CONTAINMENT MENTALITY CAN BE VERY DANGEROUS TO ONE'S HEALTH MY FIRM RECENTLY WORKED WITH KAISER PERMANENTE ON A PIONEERING QUALITY REPORT CARD THE REPORT CARD COMPARED THE CLINICAL OUTCOMES OF KAISER PERMANENTE OF NORTHERN CALIFORNIA WITH ESTABLISHED NORMS ON 102 MEASURES OF QUALITY OVERALL THE REPORT CARD SHOWS THAT THE ORGANIZATION CONSISTENTLY EXCEEDED NORMS FOR CLINICAL QUALITY TO CITE SOME RELEVANT MEASURES THE REPORT CARD FOUND THAT 639 OF BREAST CANCERS DIAGNOSED AT KAISER PERMANENTE WERE CAUGHT AT THE LOCAL STAGE AS COMPARED WITH ONLY 53 IN THE US AS A WHOLE IT ALSO FOUND A FIVEYEAR BREAST CANCER SURVIVAL RATE OF 961 COMPARED WITH THE NATIONWIDE NORM OF ONLY 927 THESE AND THE 100 OTHER MEASURES INCLUDED IN THE REPORT CARD ARE FACTS NOT ANECDOTES AND READILY AVAILABLE TO THE PUBLIC MY RELATIONSHIP WITH THE ORGANIZATION IS MORE THAN THAT OF A CONSULTANT BASED ON THE QUALITY DELIVERED BY THE ORGANIZATION MY FAMILY AND I HAVE BEEN HAPPY TO ENTRUST OUR HEALTH CARE TO KAISER PERMANENTE THE COLLECTIVE EXPERIENCE OF ITS MEMBERS AS REFLECTED IN THE REPORT CARD SHOWS WE WERE RIGHT TO DO SO 9402170085 940217 WHO'S NEWS GLAXO NAMES INGRAM CEO OF ITS US UNIT LONDON GLAXO HOLDINGS PLC NAMED ROBERT A INGRAM CHIEF EXECUTIVE OFFICER OF ITS US UNIT GLAXO INC EFFECTIVE MARCH 1 SUCCEEDING CHARLES A SANDERS THE DRUG COMPANY SAID DR SANDERS 62 YEARS OLD WILL RELINQUISH HIS ROLE AS CHIEF EXECUTIVE OF GLAXO INC IN ORDER TO SPEARHEAD GLAXO'S RELATIONSHIP WITH US HEALTHCARE POLICY MAKERS HE WILL HOWEVER CONTINUE AS THE UNIT'S CHAIRMAN GLAXO INC HAD REVENUE OF 32 BILLION FOR THE FISCAL YEAR ENDED JUNE 30 1993 MR INGRAM 51 CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WILL RETAIN THE TITLE OF PRESIDENT BUT THERE ARE NO PLANS TO FILL THE POSITION OF CHIEF OPERATING OFFICER A SPOKESMAN SAID GLAXO SAID MR INGRAM WILL BE RESPONSIBLE FOR DAYTODAY RUNNING OF GLAXO AS WELL AS FORMULATING ITS STRATEGIC BUSINESS PLANS THE SPOKESMAN NOTED THAT MR INGRAM WILL CONTINUE GLAXO'S EFFORT TO MARKET INNOVATIVE PRODUCTS THAT CAN DEMONSTRATE COST EFFECTIVENESS 9402170084 940217 ABREAST OF THE MARKET STOCKS RISE MODESTLY ON STRENGTH OF ECONOMICALLY SENSITIVE ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRENGTH IN ECONOMICALLY SENSITIVE ISSUES GAVE STOCKS A MODEST LIFT AMID WORRIES ABOUT RISING INTEREST RATES AND FALLING UTILITY SHARES UNITED TECHNOLOGIES UP 2 5/8 TO 71 BOEING UP 2 1/8 TO 46 1/2 AND ALUMINUM CO OF AMERICA UP 1 1/2 TO 79 5/8 PROVIDED THE LIFT AS THE DOW JONES INDUSTRIAL AVERAGE ROSE 900 OR 023 TO 393727 ACCORDING TO PRELIMINARY FIGURES BUT ANALYSTS SAID THE SLUMPING DOW JONES UTILITIES AVERAGE UNSETTLED INVESTORS THE DOW UTILITIES AVERAGE SAGGED 270 OR 125 TO 21276 ITS LOWEST LEVEL SINCE JULY 1 1992 BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES WERE MODESTLY LOWER MUCH OF THE AFTERNOON BEFORE FINISHING WITH SLIM GAINS ADVANCING BIG BOARD ISSUES LED DECLINERS BY A NARROW MARGIN OF ABOUT 1183 TO 965 VOLUME ON THE EXCHANGE WAS ACTIVE AT ABOUT 2954 MILLION SHARES DOWN FROM 3067 MILLION TUESDAY THE STANDARD & POOR'S 500 STOCK INDEX INCHED UP 027 OR 006 TO 47279 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 019 OR 007 TO 26255 THE NASDAQ COMPOSITE INDEX ADVANCED 250 OR 032 TO 79262 ITS THIRD STRAIGHT DAY OF SOLID GAINS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 048 OR 010 TO 47532 THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND DROPPED LESS THAN 1/8 POINT TO 97 5/32 TO YIELD 646 UP FROM 645 ON TUESDAY BOEING JUMPED ON NEWS THAT SAUDI ARABIA PLANS TO ORDER ABOUT 6 BILLION OF AIRCRAFT FROM THE SEATTLE COMPANY AND FROM MCDONNELL DOUGLAS IN ST LOUIS MCDONNELL SHARES ADDED 1 7/8 TO 118 7/8 UNITED TECHNOLOGIES MEANWHILE ROSE ON EXPECTATIONS THE COMPANY IN HARTFORD CONN COULD WIN AT LEAST PART OF THE CONTRACT TO SUPPLY ENGINES FOR THE SAUDI JET ORDER THE AIRCRAFT ARE TO BE POWERED BY USMADE ENGINES BUT THE MANUFACTURER WASN'T NAMED HEWLETTPACKARD RALLIED 3 5/8 TO 89 1/8 AFTER THE COMPUTER COMPANY IN PALO ALTO CALIF POSTED SURPRISINGLY STRONG EARNINGS OF 142 A SHARE FOR THE FIRST QUARTER ENDED LAST MONTH A YEAR AGO IT HAD A PROFIT OF 103 ANALYSTS HAD PREDICTED A PROFIT OF ABOUT 121 ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM APPLIED MATERIALS INCREASED 2 TO 49 1/2 ON THE NASDAQ STOCK MARKET THE COMPANY IN SANTA CLARA CALIF WHICH MAKES EQUIPMENT USED BY SEMICONDUCTOR PRODUCERS REPORTED HIGHER EARNINGS FOR THE FIRST QUARTER ENDED LAST MONTH COMPARED WITH YEAREARLIER EARNINGS CHIP MAKERS' SHARES SURGED AGAIN MOTOROLA RALLIED 3 1/8 TO 104 1/2 TEXAS INSTRUMENTS GAINED 2 1/8 TO 78 1/2 MICRON TECHNOLOGY ADDED 1 1/8 TO 62 5/8 AND INTEL CLIMBED 2 TO 67 ON NASDAQ LONGVIEW FIBRE SHED 1 1/2 TO 19 7/8 AFTER THE FORESTPRODUCTS COMPANY IN LONGVIEW WASH SAID ITS EARNINGS FELL TO THREE CENTS A SHARE IN THE FIRST QUARTER ENDED LAST MONTH DOWN FROM 10 CENTS A SHARE A YEAR EARLIER NEWBRIDGE NETWORKS SLUMPED 3 5/8 TO 61 5/8 EVEN THOUGH THE CANADIAN COMMUNICATIONSEQUIPMENT COMPANY REPORTED THIRDQUARTER EARNINGS MORE THAN DOUBLED YEAREARLIER EARNINGS LOEWS JUMPED 1 1/4 TO 98 7/8 IT REPORTED FOURTHQUARTER EARNINGS OF 220 A SHARE REVERSING A YEARAGO LOSS OF 953 THE NEW YORK INSURANCE TOBACCO AND HOTEL COMPANY'S RESULTS FOR LAST YEAR THOUGH INCLUDED A CHARGE OF 1253 A SHARE GIDDINGS & LEWIS DROPPED 2 5/8 TO 25 3/8 ON NASDAQ THE MACHINETOOL PRODUCER IN FOND DU LAC WIS HAD A FOURTHQUARTER PROFIT OF 109 MILLION OR 32 CENTS A SHARE COMPARED WITH EARNINGS OF 10 MILLION OR 33 CENTS ON FEWER SHARES A YEAR AGO UTILITY STOCKS ARE SEEN AS A LEADING INDICATOR FOR THE EQUITY MARKET AS A WHOLE AND FOR THE BOND MARKET A BIG DROP IN UTILITIES LAST FALL FORESHADOWED THE FEDERAL RESERVE'S CREDIT TIGHTENING EARLIER THIS MONTH SAID JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ & CO THE STORY CONTINUES TO BE MONEY IS FLOWING INTO SOME CYCLICALS AND IT IS FLOWING OUT OF SOME INTERESTRATESENSITIVE STOCKS SAID PHILIP ROTH A TECHNICAL ANALYST AT DEAN WITTER REYNOLDS THAT SHIFT MAKES SENSE HE SAID BECAUSE THE ECONOMY IS IMPROVING AND RATES LIKELY WILL RISE ANALYSTS PLAYED DOWN THE SIGNIFICANCE OF A DOWNBEAT ECONOMIC READING YESTERDAY MORNING THE COMMERCE DEPARTMENT SAID HOUSING STARTS FELL 18 IN JANUARY MUCH FURTHER THAN EXPECTED THE DROP THOUGH WAS BLAMED ON POOR WEATHER CONDITIONS DURING THE MONTH SOME OF THE NERVOUSNESS ABOUT INTEREST RATES EMERGED IN ANTICIPATION OF TODAY'S SCHEDULED LABOR DEPARTMENT REPORT ON ITS CONSUMERPRICE INDEX ECONOMISTS EXPECT THE INFLATION BAROMETER TO SHOW A MODEST GAIN OF ABOUT 03 FOR LAST MONTH MR MCALINDEN THE DILLON READ OFFICER SAID STOCKS COULD REACT SHARPLY IF THE CPI NUMBER SURPRISES INVESTORS HE PROJECTED SIZABLE GAINS ON A READING OF 02 OR LOWER AND A SELLOFF ON A GAIN OF 05 OR MORE 9402170083 940217 INTERNATIONAL BRIEF RHONEPOULENC SA GROUP EARNINGS FELL IN 1993 ON POOR BUSINESS CLIMATE FRENCH CHEMICAL AND DRUG GROUP RHONEPOULENC SA SAID GROUP NET INCOME FELL 36 TO 962 MILLION FRANCS 1638 MILLION IN 1993 REFLECTING POOR BUSINESS CONDITIONS MAINLY IN EUROPE FOR 1992 THE RECENTLY PRIVATIZED COMPANY REPORTED PROFIT OF 152 BILLION FRANCS 2588 MILLION IN THE LATEST PERIOD REVENUE FELL 14 TO 8056 BILLION FRANCS FROM 8171 BILLION FRANCS A YEAR EARLIER RHONEPOULENC CONFIRMED ITS INTENTION TO REDUCE ITS NET DIVIDEND TO 24 FRANCS 41 CENTS THAT COMPARES WITH THE NET DIVIDEND OF THREE FRANCS FOR VOTING SHARES AFTER A 4FOR1 SHARE SPLIT IN THE INTERIM THE PROFIT DECLINE REFLECTED POOR CONDITIONS IN THE CHEMICALS AND FIBER BUSINESS RESTRUCTURING PROVISIONS AND THE IMPACT ON AGRICULTURE CHEMICAL DEMAND FROM THE REFORM OF EUROPEAN UNION AGRICULTURAL POLICY 9402170082 940217 CREDIT RATINGS S&P LOWERS RATINGS ON VOLKSWAGEN FIAT NEW YORK STANDARD & POORS CORP LOWERED ITS CREDIT RATINGS FOR VOLKSWAGEN AG AND FIAT SPA SAYING THE TWO BELEAGUERED AUTO MAKERS FACE A ROUGH ROAD IN THEIR RESTRUCTURING EFFORTS CITING THE EUROPEAN MARKET SLUMP EXCESS CAPACITY AND CONTINUING PRESSURE FROM JAPANESE AUTO MAKERS S&P LOWERED VW'S COMMERCIAL PAPER RATING TO A1 FROM A1 PLUS AND CUT VW'S SENIOR DEBT RATING TO APLUS FROM DOUBLEAMINUS S&P TOOK VW OFF ITS CREDITWATCH LIST AN S&P SPOKESMAN SAID VW HAS A STRONG BALANCE SHEET WITH ONLY MINIMAL DEBT STILL S&P SAID THE RATING OUTLOOK IS NEGATIVE GIVEN THE EXTENT OF VOLKSWAGEN'S COST PROBLEMS AND UNCERTAINTY OVER THE ADEQUACY OF REMEDIAL ACTIONS VW CHAIRMAN FERDINAND PIECH HAS PROJECTED A LOSS OF 135 BILLION FOR 1993 AS FOR FIAT S&P CUT ITS COMMERCIAL PAPER RATINGS TO A2 FROM A1 DROPPING THE ITALIAN AUTO CONCERN OUT OF THE TOP TIER OF COMMERCIALPAPER CREDIT RISKS THAT LIKELY WILL RAISE FIAT'S BORROWING COSTS HOWEVER FIAT DOESN'T RELY ON COMMERCIAL PAPER FINANCING TO THE SAME EXTENT AS THE US BIG THREE AUTO MAKERS DO AN S&P SPOKESMAN SAID FIAT HAS ESTIMATED A LOSS FOR 1993 OF ABOUT 16 BILLION FIAT'S COMPETITIVE POSITION IS WEAK S&P SAID IN ITS STATEMENT THE RATING CONCERN ADDED THAT CONTINUED SUCCESS FOR FIAT'S AGGRESSIVE NEW PRODUCT DEVELOPMENT PROGRAM WILL BE CRITICAL IF THE COMPANY IS TO STABILIZE ITS MARKET SHARE IN ITALY 9402170081 940217 ENERGY WHO WILL MAKE ELECTRIC POWER IN CALIFORNIA BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A BAND OF SCRAPPY INDEPENDENT ENERGY PRODUCERS AND TWO OF CALIFORNIA'S MAJOR UTILITIES ARE GOING HEAD TO HEAD OVER WHO GETS TO PRODUCE THE STATE'S ELECTRICITY IN THE FUTURE UNDER RULES SET BY CALIFORNIA'S PUBLIC UTILITIES COMMISSION IN THE LATE 1980S DOZENS OF COMPANIES HAVE BEEN BIDDING FOR MORE THAN 1 BILLION IN CUSTOMERFUNDED CONTRACTS TO BUILD NEW GENERATING PLANTS THROUGH THE LATE 1990S MANY OF THE WINNING BIDS HAVE COME FROM PRODUCERS OF WIND TURBINES THERMAL ENERGY AND OTHER RENEWABLE RESOURCES NOW SCECORP AND SAN DIEGO GAS & ELECTRIC CO CALIFORNIA'S SECOND AND THIRDLARGEST UTILITIES SAY THEY DON'T WANT OR NEED ALL THE ADDITIONAL GENERATING CAPACITY SCE CLAIMS THAT CALIFORNIA'S PRECARIOUS ECONOMIC CONDITION COMBINED WITH THE PROSPECT OF LOWERTHANANTICIPATED GROWTH RATES THROUGH 2005 MEANS THAT THE STATEENDORSED PLANS TO BUILD NEW PLANTS ARE UNREASONABLE AND OBSOLETE THE SAN DIEGO UTILITY WANTS TO MODIFY THE TERMS OF SOME NEW PROJECTS SO THEY'VE APPEALED TO THE PUBLIC UTILITIES COMMISSION TO HALT THE PROCESS THE COMMISSION'S DECISION WILL HELP SHAPE THE ELECTRICUTILITY INDUSTRY INTO THE NEXT DECADE WHAT SCE OBJECTS TO IS BEING FORCED TO CONTRACT FOR POWER THAT WON'T BE NEEDED FOR A DECADE OR MORE IT MAKES NO SENSE WHATSOEVER SAYS DON FELLOWS SCE'S MANAGER OF INDEPENDENT POWER THE PUBLIC UTILITIES COMMISSION YESTERDAY PUT OFF A DECISION ABOUT WHAT TO DO WITH THE BIDS UNTIL LATER THIS YEAR THE RHETORIC OVER THE PROPOSED NEW POWER CAPACITY HAS BECOME SUPERHEATED WITH EACH SIDE ACCUSING THE OTHER OF USING PHONY COST ESTIMATES AND SCARE TACTICS TO MISLEAD THE PUBLIC SCE FOR EXAMPLE CONTENDS THAT THE NEW PLANTS COULD COST CUSTOMERS AN EXTRA 530 MILLION OVER THE NEXT FEW YEARS WHICH WOULD PROMPT MANY PRIME INDUSTRIAL CUSTOMERS TO TRY TO PRODUCE THEIR OWN POWER THE OPPOSITION CONTENDS THAT SCE IS DREDGING UP ANY ARGUMENT NO MATTER HOW FARFETCHED TO HALT THE NEW PROJECTS BECAUSE THE ROSEMEAD CALIF UTILITY SIMPLY WANTS TO BLOCK ANY NEW POWER GENERATION THAT IT DOESN'T OWN CONTROL AND PROFIT FROM READS A FILING FROM KENETECH CORP A FASTGROWING WINDPOWER COMPANY IN SAN FRANCISCO UTILITIES ARE FEELING FUNDAMENTALLY THREATENED SO THEY HAVE DRAWN UP THE BRIDGES AND FILLED UP THE MOAT SAYS GERALD ALDERSON KENETECH'S PRESIDENT HAVING WON ROUGHLY 500 MILLION IN THE STATE AUCTION KENETECH STANDS TO EMERGE AS A BIG WINNER THERE ISN'T ANY DOUBT SAYS ALLAN THOMPSON A SAN FRANCISCO ATTORNEY SPECIALIZING IN INDEPENDENT POWER REGULATION THAT BIDS SUBMITTED BY MOST UTILITIES WERE BEAT BY THE INDEPENDENTS WINDPOWER ADVOCATES CLAIM FOR EXAMPLE THAT THEIR PROJECTED COSTS TO PRODUCE ENERGY CAME IN AT LEAST 20 BELOW TRADITIONAL UTILITY ESTIMATES FOR COMPARABLE CAPACITY IF ALTERNATIVEENERGY BIDDERS ARE VICTORIOUS AS MANY OBSERVERS EXPECT SCE AND MANY OTHER UTILITIES COULD BE PHASED OUT OF THE BUSINESS OF BUILDING AND OPERATING NEW US GENERATING PLANTS THEY MIGHT THEN BE RELEGATED LARGELY TO THE ROLE OF BUYING POWER FROM THE CHEAPEST SOURCES AND TRANSMITTING IT OVER THE EXISTING POWER GRID TO CUSTOMERS SCE AND SAN DIEGO GAS SAY THEY AREN'T OPPOSED TO ALTERNATIVE ENERGY AND POINT OUT THAT IN YEARS PAST THEY HAVE BEEN IN THE FOREFRONT OF UTILITIES THAT HAVE SWITCHED TO WIND TURBINES THERMAL ENERGY AND OTHER ALTERNATIVEPOWER SOURCES BUT GREGORY ENHOLM A FORMER WALL STREET ANALYST WHO IS NOW AN INDUSTRY CONSULTANT SAYS UTILITIES INCREASINGLY ARE CONCLUDING THAT MANY OF THE RENEWABLE PROJECTS CONCEIVED YEARS AGO ARE NOT SUCH A GOOD IDEA FOR THEM OR FOR THEIR RATEPAYERS INSTEAD OF RUBBERSTAMPING THE AUCTION RESULTS AS A SINGLE PACKAGE SCE WANTS THE COMMISSION TO GIVE IT AUTHORITY TO NEGOTIATE FOR A FEW NEW PLANTS ON A CASEBYCASE BASIS THE MOST BITTER ATTACKS ON THE UTILITIES COME FROM CONSUMER ADVOCATES WHOSE RECENT FILING DISMISSES SCE'S COMPLAINTS AS A DIVERSIONARY ACTION TO DRAW ATTENTION AWAY FROM FUNDAMENTAL PRICING ISSUES THE SAME DOCUMENT LAMBASTES SCE FOR SERVING UP A BIZARRE AND UNREAL COLLECTION OF RED HERRINGS STRAWMEN ANECDOTES SHAMELESS ECONOMIC DISTORTIONS AND EVERYTHING BUT THE KITCHEN SINK TO PROTECT ITS MARKET SHARE SCE TOO IS STEPPING UP THE PRESSURE TO CONVINCE SKEPTICS IT HAS PROMISED TO FORGO EXPANSION OF ANY OF ITS EXISTING PLANTS FOR AT LEAST EIGHT YEARS AND TO SEEK COMPETITIVE BIDS FOR ALL NEW POWER SOURCES IT MAY REQUIRE MEANWHILE SAN FRANCISCOBASED PACIFIC GAS & ELECTRIC CO THE NATION'S LARGEST INVESTOROWNED ELECTRIC UTILITY IS HEDGING ITS BETS PG&E'S EXECUTIVES ALSO HAVE COMPLAINED ABOUT THE BIDDING PROCEDURES BUT THEY HAVE STOPPED SHORT OF CALLING FOR OUTRIGHT CANCELLATION OF THE CONSTRUCTION PROGRAM ONE REASON APPEARS TO BE THAT THE COMPANY'S UNREGULATED SUBSIDIARY SUBMITTED THE LOWESTCOST BIDS FOR A SIZABLE CHUNK OF THE PROJECTS UNDER DEBATE THE COMMISSION'S DELIBERATIONS WHICH WILL PROBABLY STRETCH OUT OVER MONTHS WILL BE WATCHED CLOSELY BY REGULATORS AND UTILITY EXECUTIVES ACROSS THE COUNTRY THE OUTCOME WILL GO A LONG WAY TOWARD DETERMINING THE FINANCIAL AND REGULATORY CONSTRAINTS UTILITIES WILL HAVE TO CONFRONT IN OTHER STATES FEDERAL ENERGY REGULATORS ALREADY HAVE ORDERED UTILITIES TO GIVE COMPETITORS EQUAL ACCESS TO TRANSMISSION LINES INCREASING THE LIKELIHOOD OF INTRASTATE AND INTERSTATE PRICE WARS TO SELL ELECTRICITY ALTHOUGH TODAY'S LOW OIL PRICES MAKE RENEWABLE ENERGY LESS ATRACTIVE INDEPENDENT PRODUCERS HAVE MADE CONSIDERABLE HEADWAY IN THE PAST FEW YEARS MARKETING SUCH POWER SCE FOR EXAMPLE GETS 23 OF ITS CURRENT POWER FROM RENEWABLES DURING THE THIRD QUARTER OF 1993 ACCORDING TO THE LATEST FIGURES COMPILED BY THE INDUSTRYBACKED EDISON ELECTRIC INSTITUTE US UTILITIES SPENT NEARLY 15 MORE THAN THE PREVIOUS YEAR TO PURCHASE POWER FROM OUTSIDE SOURCES THE BOTTOM LINE ACCORDING TO DAVID ROE A SENIOR ATTORNEY WITH THE ENVIRONMENTAL DEFENSE FUND IS THAT MANY LARGE UTILITIES ARE COMMITTED RHETORICALLY TO THE IDEA OF BUYING THE CHEAPEST POWER AND FAVORING POLLUTIONFREE ENERGY SOURCES BUT IN PRACTICE MR ROE ASSERTS THEY DON'T WANT TO DO ANYTHING TO COMPETE WITH THEIR OWN GENERATING CAPACITY 9402170080 940217 HEARD ON THE STREET BANC ONE'S SLIDE ENDS ACQUISITION SPREE PRODUCING JITTERS AMONG SOME INVESTORS BY GABRIELLA STERN AND SUSAN PULLIAM STAFF REPORTERS OF THE WALL STREET JOURNAL BANC ONE PUTTING AN ACQUISITION ON ICE IN THE MINDS OF SOME INVESTORS THAT'S A LOT LIKE GENERAL MOTORS HALTING PRODUCTION OF CARS THE OHIO BANKING COMPANY HAS BEEN A RELENTLESS ACQUIRER WITH SIX DEALS PENDING AT THE MOMENT THEN CAME THIS WEEK'S SCUTTLING OF ITS PLANNED STOCKSWAP TAKEOVER OF NEBRASKA'S FIRSTIER FINANCIAL THUMP BANC ONE'S ALREADY FALTERING STOCK CLOSED AT 32 OFF 1/2 YESTERDAY AND CLOSE TO A TWOYEAR LOW NOW SOME INVESTORS ARE SAYING THE COMPANY'S ACQUISITION BINGE MAY HAVE TO BE SHELVED AT LEAST TEMPORARILY AND THE SHARES COULD SLIP EVEN FURTHER I THINK THIS WILL PROVE TO BE A WATERSHED EVENT FOR BANC ONE SAYS ROBERT TORRAY AN INVESTMENT MANAGER WITH 125 BILLION UNDER MANAGEMENT NOW THE WHOLE THING HAS UNWOUND AND ITS ACQUISITIONS HAVE STALLED IN ESSENCE THE SKEPTICS SAY BANC ONE MAY NOT BE ABLE TO SUSTAIN ANNUAL EARNINGS GROWTH IN THE LOW TEENS BECAUSE ITS SHARE PRICE HAS FALLEN SO LOW THAT IT CAN'T KEEP ON USING STOCK TO MAKE SIZABLE ACQUISITIONS THAT WILL FATTEN PROFIT SOME ANALYSTS APPLAUDED BANC ONE FOR CALLING OFF THE FIRSTIER DEAL RATHER THAN BOOSTING THE NUMBER OF SHARES IN THE BID WE VIEW THIS AS A POSITIVE SINCE BANC ONE WAS UNWILLING TO RAISE THE PRICE JUST TO GET THE DEAL DONE SAID MOSHE ORENBUCH AN ANALYST AT SANFORD C BERNSTEIN HE EXPECTS BANC ONE STOCK TO OUTPERFORM THE OVERALL MARKET BUT IT HAS BEEN 20 YEARS SINCE THE BANK HAD TO WALK AWAY FROM A DEAL BECAUSE IT COULDN'T AFFORD TO INCREASE ITS OFFER BANC ONE HAS BEEN IDENTIFIED WITH AN ACQUISITION STRATEGY WHICH HAS BEEN THE BASIS OF ITS SUCCESS THAT PERCEPTION IS NOW GOING TO CHANGE SAYS NANCY BUSH OF BROWN BROTHERS HARRIMAN WHO RATES THE STOCK NEUTRAL AND WHAT ABOUT SOME OF THE COLUMBUS OHIO COMPANY'S PENDING ACQUISITIONS THE BIGGEST ONE WOULD BE THE TAKEOVER OF LIBERTY NATIONAL BANCORP ANOTHER STOCKSWAP TRANSACTION MALCOLM CHANCEY CHAIRMAN OF LIBERTY SAID YESTERDAY THAT THE BANK PLANS TO WORK DILIGENTLY TOWARD THE COMPLETION OF A MERGER BUT SOME BIG INVESTORS IN LIBERTY SAY THEY NOW AREN'T SO KEEN ABOUT MERGING WITH BANC ONE SHAREHOLDERS ARE WONDERING WHETHER THEY WOULDN'T DO BETTER ON THEIR OWN OR IF LIBERTY WERE PUT UP FOR AUCTION SAYS ALAN MOREL AN ANALYST WITH HILLIARD LYONS INVESTMENT MANAGEMENT GROUP THE LOUISVILLE KY FIRM IS ONE OF LIBERTY'S LARGEST HOLDERS WITH ABOUT A 6 STAKE THE TWO ANNOUNCED MERGER PLANS NOV 8 LIBERTY EXECUTIVES ARE GOING TO HAVE TO JUSTIFY TO SHAREHOLDERS ANY NEW ARRANGEMENT THAT THEY MAKE AT A LOWER PRICE SAYS HILLIARD'S MR MOREL LIBERTY WOULD BOLSTER BANC ONE'S PRESENCE IN KENTUCKY AND GIVE IT ACCESS TO THE THRIVING LOUISVILLE MARKET OTHER PENDING DEALS WOULD ADD MORE THAN A HALFBILLION DOLLARS OF ASSETS IN ADDITION THERE IS PREMIER BANCORP OF BATON ROUGE LA WITH 4 BILLION IN ASSETS WHICH BANC ONE HAS AN OPTION TO BUY BETWEEN JUNE 1995 AND JUNE 1996 JOHN B MCCOY BANC ONE'S CHAIRMAN BELIEVES THE LIBERTY TRANSACTION WILL GO THROUGH I DON'T HAVE TO WORRY ABOUT THAT HE SAYS THE WALKAWAY PRICE WITH THAT BANK IS ABOUT 3455 A SHARE ADJUSTED FOR A RECENT STOCK SPLIT AND STOCK DIVIDEND WE'RE AROUND 32 RIGHT NOW AND WE'RE THREE MONTHS AWAY FROM THAT TRANSACTION GETTING APPROVAL MR MCCOY RECALLS A TIME WHEN PEOPLE SAID GOD I HOPE THEY DON'T DO A DUMB DEAL' NOW HE SAYS IT SEEMS BANC ONE IS UNDER PRESSURE TO DO A DEAL NO MATTER WHAT ON WALL STREET HE SAYS EVERYONE'S JUMPING ON JOHN MCCOY AND BANC ONE AND PRETTY SOON PEOPLE ARE GOING TO SAY THIS IS A GOOD BUY BUT RIGHT NOW THE STREET IS SKITTISH DEPRESSING THE STOCK ARE BANC ONE'S DERIVATIVES HEAVY INVESTMENT PORTFOLIO AND SEEMING RELUCTANCE TO PARE COSTS AT FARFLUNG UNITS EVEN SOME FANS ARE TORN FRANK BARKOCY OF ADVEST WHO RATES BANC ONE A BUY SAYS THE STOCK IS PROBABLY JUST AS LOW AS IT CAN GET WITHOUT IT BEING SO OUTOFWHACK IN RELATION TO THE PEER GROUP YET HE FEARS THE DOMINO EFFECT OF INVESTOR CONCERNS CAN THEY STILL USE SHARES AS IN THE PAST TO MAKE SUCCESSFUL ACQUISITIONS NO THEY CAN'T AND SO THE STOCK GETS WEAKER HE SAYS WHEN INVESTOR FEARS ABOUT THE BANK'S DERIVATIVES PUMMELED THE STOCK LAST FALL MR MCCOY WENT ON THE ROAD TO SELL THE IDEA USING SUCH INSTRUMENTS AS INTERESTRATE SWAPS HE WON SOME CONVERTS BUT SAYS IT TAKES SOME TIME TO GET THAT ACROSS TO ALL INVESTORS THE FEDERAL RESERVE SEEMS UNCONCERNED SAYS ONE FED STAFF OFFICIAL OF BANC ONE THEY TAKE A PRETTY CONSERVATIVE APPROACH TO THEM IN A WORSTCASE SCENARIO IF THE WHOLE DERIVATIVES BOOK BLEW UP HE'D LOSE ONE QUARTER OF EARNINGS THE MARKET DOESN'T FULLY UNDERSTAND HOW THEY'RE BEING USED MR MCCOY BELIEVES THE COMPANY CAN SUSTAIN 125 TO 13 ANNUAL EARNINGS GROWTH EVEN WITHOUT THE SAME PACE OF ACQUISITIONS AS IN THE PAST WE'RE SEEING LOAN GROWTH IN THE SOUTHWEST INCLUDING TEXAS HE SAYS IN THE FOURTH QUARTER LOANS GREW ABOUT 15 ON AN ANNUAL BASIS OVER THE THIRD QUARTER FUELED LARGELY BY THE COMPANY'S ARIZONA BANK MR MCCOY EXPECTS LOANS TO GROW MORE THAN 10 IN THE FIRST QUARTER IF THERE WAS NO LOAN DEMAND AND WE HAD NO NEW PRODUCTS AND WERE SITTING DEAD IN THE WATER I'D SAY MAYBE WE OUGHT TO RELOOK AT WHAT WE'RE DOING MR MCCOY SAYS BUT I'M VERY COMFORTABLE I'M NOT WORRIED IF WE DON'T MAKE AN ACQUISITION FOR THE NEXT THREE YEARS NOW FOUR YEARS THAT MIGHT BE AN ISSUE IT MAY TAKE AWHILE FOR BANC ONE'S STOCK TO RECOVER IN THE INTERIM MR MCCOY SAYS HE MIGHT CONSIDER USING CASH TO MAKE ACQUISITIONS WE'RE GOING TO LOOK AT ANY TRANSACTION TO SEE IF THERE'S AN APPROPRIATE WAY TO DO IT THE PROBLEM IS THERE'S A LOT OF GOODWILL AN ACCOUNTING ITEM ARISING FROM ACQUISITIONS AND WE'RE NOT BIG ON HAVING AMORTIZATION OR PERENNIAL WRITEOFFS AGAINST EARNINGS YEAR AFTER YEAR DENNIS SHEA OF MORGAN STANLEY HAS A HOLD RATING ON BANC ONE HE ISN'T READY TO RECOMMEND THE STOCK BECAUSE HE BELIEVES IT'LL TAKE SOME TIME FOR THE BANK TO GENERATE ENOUGH LOAN GROWTH TO DRIVE EARNINGS NOTING THAT BANC ONE IS STILL WORKING ON ABSORBING MAJOR ACQUISITIONS IN ARIZONA AND COLORADO HE SAYS WE DON'T KNOW HOW LONG IT'S GOING TO BE MOREOVER MS BUSH OF BROWN BROTHERS WOULD LIKE TO SEE BANC ONE INDICATE TO THE STREET THAT THERE ARE STRONGER CONTROLS ON EXPENSES HER VIEW IS THAT BANC ONE HAS BEEN TAKING ON ONE NEW UNIT AFTER ANOTHER WITHOUT TAKING A HARD ENOUGH LOOK AT OVERHEAD EMPLOYMENT AND OVERLAPPING SYSTEMS UNTIL ITS STOCK RECOVERS SHE SAYS ANNUAL EARNINGS WILL GROW IN THE 10 TO 11 RANGE MEANWHILE SHE SAYS THERE'S NOT A LOT OF DOWNSIDE TO THE STOCK AND NOT A LOT OF UPSIDE IT'S GOING TO GO THROUGH A PERIOD WHERE PEOPLE SORT OUT ITS FUTURE DIRECTION BANC ONE ALSO FACES THIS DISADVANTAGE SO MANY INSTITUTIONS OWN IT THAT THERE ARE FEW FANS STILL TO RECRUIT THIS HAS BEEN THE NO 1 INSTITUTIONAL FAVORITE SAYS MR TORRAY BUT WITH ACQUISITIONS SCREECHING TO A HALT AND THE EARNINGSGROWTH RATE IN QUESTION FINDING MORE AND MORE BELIEVERS WILL BE DIFFICULT ADD TO THAT THE OVERHANG OF A LOT OF HOT STOCK IN THE HANDS OF SHAREHOLDERS OF BANKS THAT BANC ONE ACQUIRED AND THE STOCK IS ON A WOBBLY FOUNDATION 9402170079 940217 HOSPITALBOND FUND REVEALS PROBLEMS BY LAURA JERESKI AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL FINANCIAL TROUBLES ROILING A LITTLEKNOWN CALIFORNIA STATE INSURANCE PROGRAM MAY SIGNAL POTENTIAL PROBLEMS IN A BACKWATER OF THE TAXEXEMPT MARKETS HOSPITAL BONDS THE PROBLEMS HAVE BEEN CROPPING UP IN CALMORTGAGE LOAN INSURANCE DIVISION AN INSURANCE FUND SET UP 25 YEARS AGO TO GUARANTEE BOND ISSUES BY FINANCIALLY SHAKY HEALTHCARE PROVIDERS THE PROGRAM NOW BACKSTOPS ABOUT 210 PROJECTS IN THE STATE WITH ABOUT 2 BILLION IN BONDS OUTSTANDING NOW THE FUND IS FACING ITS FIRST TEST EARLIER THIS MONTH TRIAD HEALTHCARE INC AN ENCINO CALIF HOSPITAL COMPANY FILED FOR BANKRUPTCYLAW PROTECTION AFTER A SERIES OF PROBLEMS TRIGGERED BY ITS DEFAULT LAST SUMMER ON 167 MILLION OF BONDS EARLIER THIS WEEK DENNIS FENWICK CALMORTGAGE'S DEPUTY DIRECTOR IDENTIFIED THREE MORE HEALTHCARE PROVIDERS THAT MAY PUT ANOTHER 35 MILLION DENT IN THE FUND THIS IS MAKING VISIBLE A PROBLEM THAT HAS BEEN HARD TO SEE SAYS STEVEN RENN OF AMBAC A MUNICIPALBOND INSURANCE COMPANY MOST HOSPITALS ARE NONPROFIT SO THEY ARE ABLE TO TAKE ADVANTAGE OF TAX EXEMPTION TO RAISE FUNDS BUT THE NUMBER OF HOSPITALS THAT HAVE DEFAULTED ON THEIR OBLIGATIONS WHILE STILL SMALL HAS BEEN GROWING SINCE 1979 ABOUT 20 ISSUERS HAVE DEFAULTED ACCORDING TO MR RENN BUT MORE DEFAULTS ARE EXPECTED AS HOSPITALS STRUGGLE TO FIND ALLIANCES AMID INCREASING PRESSURE FROM MANAGEDCARE PROVIDERS THAT WORRIES MR RENN AND OTHERS WHO TRY TO MONITOR THIS MURKY AREA OF MUNICIPAL FINANCE MR RENN ESTIMATES THAT PERHAPS 2000 HOSPITALS OF THE 5300 LICENSED IN THE COUNTRY HAVE BONDS OUTSTANDING DESPITE THE LACK OF INFORMATION ABOUT MANY OF THESE ISSUES HOSPITAL BONDS BECAUSE THEY PAY ABOUT HALF A PERCENTAGE POINT MORE IN INTEREST ANNUALLY THAN OTHER TYPES OF MUNICIPAL BONDS HAVE BEEN A FAVORITE AMONG INDIVIDUAL INVESTORS ONLY CALIFORNIA HAS A STATE FUND TO ENHANCE THE CREDIT OF WEAKER HOSPITALS BUT PRIVATE BACKING IS AVAILABLE TO OTHERS OUTSIDE OF CALIFORNIA IN THE FORM OF BOND INSURANCE THAT MEANS THAT WHILE MANY BONDS CARRY A SINGLEA CREDIT RATING THE HOSPITALS ISSUING THE BONDS MAY IN FACT BE MUCH WEAKER ABOUT HALF THE 100 BILLION IN OUTSTANDING HOSPITAL BONDS HAVE SOME FORM OF CREDIT ENHANCEMENT SAYS CHRISTOPHER CONLEY A SENIOR VICE PRESIDENT OF PUBLIC FINANCE AT LEHMAN BROTHERS THAT'S WHY MUNICIPALBOND EXPERTS AND MUTUAL FUNDS THAT INVEST IN HOSPITAL SECURITIES ARE WATCHING TO SEE HOW THE STATE FUND DEALS WITH ITS PROBLEMS TRIAD HEALTHCARE WAS FORMED THREE YEARS AGO BY A SMALL INVESTOR GROUP TO PURCHASE THE SHERMAN OAKS HOSPITAL AND HEALTH CENTER AND THE WEST VALLEY HOSPITAL AND HEALTH CENTER IN THE SAN FERNANDO VALLEY NORTHWEST OF LOS ANGELES THE INVESTORS WERE LED BY STUART MARYLANDER A FORMER EXECUTIVE OF NUMED INC A TROUBLED HOSPITAL CHAIN THAT OWNED THE TWO HOSPITALS TRIAD'S PURCHASE OF THE HOSPITALS WAS BACKED BY CALMORTGAGE LOAN GUARANTEES OVER THE OBJECTIONS OF SOME CALMORTGAGE OFFICIALS THE COMPANY RAISED 167 MILLION INCLUDING A 128 MILLION RESERVE FOR THE FIRST YEAR OF INTEREST PAYMENTS THEY INSURED SOMETHING THEY SHOULDN'T HAVE SAYS PAUL THOMPSON A VICE PRESIDENT OF AMBAC EARLIER THIS MONTH THE COMPANY FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION TO THWART THE STATE FROM FORECLOSING ON IT SINCE THEN THE FEDERAL BANKRUPTCY COURT IN LOS ANGELES HAS APPOINTED A TRUSTEE TO OPERATE THE HOSPITALS IF THE HOSPITALS CAN'T GET BACK ON AN EVEN KEEL THE LOSERS WILL BE THE STATE'S TAXPAYERS WHO ARE ON THE HOOK TO MAKE GOOD ON PRINCIPAL AND INTEREST PAYMENTS TO HOLDERS OF THE COMPANY'S BONDS THE FUND ALREADY HAS FIELDED INQUIRIES FROM NUVEEN AND THE FRANKLIN FUNDS THE INSURANCE FUND HAS 120 MILLION AVAILABLE THE PROBLEM ALSO HAS GENERATED POLITICAL HEAT IN CALIFORNIA THE TRIAD DEAL WAS PERMEATED WITH CONFLICTOFINTEREST ISSUES THAT RAISE QUESTIONS ABOUT HOW THE CALMORTGAGE PROGRAM OPERATED STATE LEGISLATOR BURT MARGOLIN SAID THE STATE ASSEMBLY HEALTH COMMITTEE HE HEADS HAS CALLED A SPECIAL HEARING IN SACRAMENTO NEXT WEEK TO INVESTIGATE THE TRIAD TRANSACTION THE CONFLICT OF INTEREST REVOLVES AROUND THE DUAL ROLES OF A GOLDMAN SACHS & CO INVESTMENT BANKER VINCENT FORTE WHO WAS AN ADVISER TO CALMORTGAGE AT THE SAME TIME HE REPRESENTED TRIAD IN THE PURCHASE OF THE HOSPITALS THE FACT THAT HE DIDN'T VOTE ON THE TRIAD LOAN DEAL DOESN'T MEAN THAT HE DIDN'T INFLUENCE THE DECISION CRITICS CHARGE A GOLDMAN SACHS SPOKESMAN SAID ALL MR FORTE'S ACTIONS WERE PROPER AND ETHICAL 9402170078 940217 GE CAPITAL MORTGAGE UNVEILS INSURANCE PLAN FOR 3DOWN LOANS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE LEADING US MORTGAGE INVESTOR AGREED TO BUY 3DOWN LOANS THAT MEET PRODUCT GUIDELINES PRIOR TO THIS PROGRAM CONVENTIONAL LOANS REQUIRED A DOWN PAYMENT OF AT LEAST 5 BY CUTTING THAT TO 3 GE CAPITAL ESTIMATED THAT 750000 ADDITIONAL BORROWERS WILL BE ABLE TO QUALIFY FOR CONVENTIONAL LOANS TO PURCHASE MODESTLY PRICED HOMES CONVENTIONAL LOANS ARE THOSE THAT AREN'T BACKED BY THE GOVERNMENT IN ADDITION TO THE LOANS FANNIE MAE PURCHASES WE WILL ALSO INSURE LOANS HELD IN LENDERS' PORTFOLIOS AND PRODUCT DELIVERED TO STATEHOUSING FINANCE AGENCIES AND OTHER INVESTORS MARTIN HECK PRESIDENT OF GE CAPITAL MORTGAGE INSURANCE SAID IN A STATEMENT THE PROGRAM WILL INCLUDE A COUNSELING SERVICE DESIGNED TO HELP DELINQUENT BORROWERS TAKE CORRECTIVE STEPS GE CAPITAL MORTGAGE INSURANCE CORP IN RALEIGH NC IS A UNIT OF GE CAPITAL MORTGAGE CORP A SUBSIDIARY OF GE CAPITAL WHICH IS A WHOLLY OWNED SUBSIDIARY OF GENERAL ELECTRIC CO A DIVERSIFIED COMPANY IN STAMFORD CONN 9402170077 940217 INTERNATIONAL GERMAN ARMY EXTENDS LANDMINE CLEARING TASK BERLIN UNIFYING GERMANY IS PROVING MORE EXPLOSIVE THAN ANYONE EXPECTED MORE THAN THREE YEARS AFTER THE LINE DIVIDING EAST AND WEST GERMANY WAS OFFICIALLY ERASED AUTHORITIES KEEP FINDING THAT MORE LAND MINES LITTER THE EASTERN SIDE OF THE BORDER ZONE THAN THEY HAD THOUGHT THE GERMAN ARMY WHICH IS OVERSEEING MINE CLEARING IN THE REGION ANNOUNCED THAT 93 MORE MILES OF THE BORDER NEEDED TO BE SCOURED FOR MINES SQUADS COMPOSED OF FORMER EAST GERMAN BORDER GUARDS HAVE BEEN CLEARING THE MINES AT A CAUTIOUS SNAIL'S PACE IN THE DEATH STRIP FOR NEARLY TWO AND A HALF YEARS SO FAR THEY HAVE COVERED 43 OF 105 MILES THAT HAD BEEN DESIGNATED AS DANGEROUS THE ARMY HAD HOPED THAT THEY WOULD FINISH THE TASK THIS YEAR THE EXTRA 93 MILES WERE CLASSIFIED AS DANGEROUS AND NOW MUST BE MARKED WITH SIGNS AFTER SEVERAL MINES WERE FOUND BY FARMERS IN AREAS THAT WERE SUPPOSED TO BE MINEFREE IN ALL EAST GERMANY IS BELIEVED TO HAVE PLANTED 13 MILLION MINES IN THE BORDER REGION THOUGH MOST WERE SUPPOSEDLY CLEARED IN THE LATE 1980S 9402170076 940217 INTERNATIONAL BRIEF SANDVIK AB LETTER OF INTENT IS SIGNED TO ACQUIRE KRUPP WIDIA SANDVIK AB A SWEDENBASED CEMENTED CARBIDE GROUP HAS SIGNED A LETTER OF INTENT TO ACQUIRE KRUPP WIDIA GMBH OF GERMANY FROM THE KRUPP AG HOESCHKRUPP GROUP FINANCIAL TERMS OF THE TRANSACTION WEREN'T DISCLOSED AND THE DEAL IS SUBJECT TO A FINAL AGREEMENT AND APPROVAL BY CARTEL AUTHORITIES AND THE SUPERVISORY BOARDS OF THE TWO GROUPS THE AGREEMENT COVERS WIDIA'S CEMENTED CARBIDE AND MAGNET SECTOR BUT NOT ITS MEDICAL ENGINEERING BUSINESS SAID SANDVIK SANDVIK SAID WIDIA WILL OPERATE AS AN INDEPENDENT SUBSIDIARY WITHIN THE GROUP WITH ITS OWN RESEARCH AND DEVELOPMENT PRODUCTION AND MARKETING ACTIVITIES CONSOLIDATED TURNOVER OF THE WIDIA GROUP WILL BE AROUND 16 BILLION KRONOR 1995 MILLION SAID SANDVIK 9402170075 940217 US RUSSIA EASE RULES ON DRUG TRADE PROCEDURES WASHINGTON USMADE PHARMACEUTICALS WILL BE MORE EASILY AVAILABLE TO THE MEDICALLY UNDERSERVED RUSSIAN PEOPLE FOLLOWING THE STREAMLINING OF TRADE PROCEDURES FOR DRUG EXPORTS BY THE US AND RUSSIAN GOVERNMENTS THE FOOD AND DRUG ADMINISTRATION SAID CERTAIN RUSSIAN REGISTRATION PROCEDURES CONCERNING THE IMPORT OF DRUGS HAVE BEEN ELIMINATED THE RUSSIAN GOVERNMENT HAS AGREED TO WAIVE TWO PROVISIONS ONE WHICH REQUIRES A COMPLETE RUSSIAN SCIENTIFIC TRANSLATION OF ANY POSSIBLE DRUG IMPORT AND ANOTHER THAT CALLS FOR SEPARATE CLINICAL TESTS TO BE PERFORMED BY RUSSIAN SCIENTISTS THERE IS A GREAT NEED FOR IMPORTS SAID JIM O'HARA AN FDA SPOKESMAN ONLY 28 OF THE DRUGS NEEDED BY THE RUSSIAN PEOPLE ARE MADE IN THE RUSSIAN FEDERATION US COMPANIES WILL BE REQUIRED TO SUBMIT DOCUMENTS TO THE RUSSIAN GOVERNMENT PROVIDING ASSURANCE THAT THE FDA HAS APPROVED THE DRUG IN QUESTION AS WELL AS INFORMATION ABOUT THE COMPANY ITSELF THE APPLICATION WILL THEN BE REVIEWED BY THE RUSSIAN MINISTRY OF HEALTH AND MEDICAL INDUSTRY FOR 90 DAYS MR O'HARA SAID US PHARMACEUTICAL COMPANIES EXPORTED APPROXIMATELY 85 MILLION OF DRUGS TO RUSSIA IN 1993 9402170074 940217 BUSINESS BRIEF PROTEON INC FOURTHPERIOD LOSS IS POSTED AS COMPANY'S SALES PLUNGED PROTEON INC AS IT HAD FORECAST REPORTED A FOURTHQUARTER LOSS AS SALES PLUMMETED AND TOOK A 54 MILLION RESTRUCTURING CHARGE AND WROTE DOWN INVENTORIES FOR THE QUARTER THE WESTBOROUGH MASS MAKER OF COMPUTERNETWORK EQUIPMENT POSTED A LOSS OF 137 MILLION OR 93 CENTS A SHARE COMPARED WITH NET INCOME OF 252000 OR TWO CENTS A SHARE LATEST QUARTER RESULTS REFLECT A RESTRUCTURING CHARGE OF 54 MILLION OR 37 CENTS A SHARE RELATED TO THE LAYOFF OF 40 EMPLOYEES OR 10 OF THE WORK FORCE AND WRITEDOWNS OF INVENTORIES SALES PLUNGED 35 TO 204 MILLION FROM 316 MILLION PROTEON SAID THE DECLINE REFLECTED COMPETITIVE PRESSURES CUSTOMERS WAITING FOR A GENERATION OF NETWORKCIRCUIT CARDS INTRODUCED DURING THE QUARTER AND LENGTHENING SALES CYCLES PROTEON CLOSED AT 7125 UP 50 CENTS IN NASDAQ STOCK MARKET TRADING YESTERDAY 9402170072 940202 KITCHENSINK BONDS PROMPT SEC REVIEW BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION WORRIED ABOUT HIDDEN RISKS LURKING IN CERTAIN TRIPLEARATED MORTGAGE SECURITIES IS INVESTIGATING WHETHER TO TIGHTEN DISCLOSURE STANDARDS ON SUCH SECURITIES KNOWN AS CASHFLOW OR KITCHENSINK BONDS KITCHENSINKERS SO NAMED BECAUSE THEY CONTAIN ALMOST EVERYTHING BUT ARE OFFSPRING OF COLLATERALIZED MORTGAGE OBLIGATIONS WHICH ARE BACKED BY THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF MORTGAGE LOANS IN ESSENCE KITCHENSINK BONDS ARE CREATED BY LUMPING TOGETHER RISKY UNWANTED CMOS INTO A TRUST AND RECYCLING THE TRUST'S CASH FLOWS INTO NEW SECURITIES THAT APPEAR MORE APPETIZING SINCE MAY WALL STREET HAS SOLD ABOUT 4 BILLION OF SUCH KITCHENSINKERS THIS IS THE FIRST TIME THE SEC HAS RAISED QUESTIONS ABOUT THE COMPLEX CMO MARKET WHICH REPRESENTS ABOUT 800 BILLION OF SECURITIES OUTSTANDING THE REGULATORY SCRUTINY HAS ALREADY HAD A CHILLING EFFECT ON NEW ISSUANCE OF EXOTIC TYPES OF CMOS FOR EXAMPLE BEAR STEARNS & CO OF NEW YORK WHICH UNDERWROTE MORE THAN TWOTHIRDS OF THE KITCHENSINKERS OUTSTANDING SAYS IT WON'T SELL ANY MORE OF THEM UNTIL THE SEC COMPLETES ITS REVIEW WE LOOK FORWARD TO AN OPPORTUNITY TO CONTINUE DISCUSSIONS WITH THE SEC AND WILL CONTINUE TO WORK ON A RESOLUTION PRIOR TO ANY FURTHER ISSUANCE SAYS PETER CHERASIA A SENIOR MANAGING DIRECTOR AT BEAR STEARNS AMONG OTHER THINGS THE SEC INQUIRY AIMS TO DETERMINE WHETHER UNDERWRITERS SHOULD PROVIDE BUYERS WITH MORE INFORMATION ABOUT THE TYPES OF HARDTOANALYZE CMOS THAT BACK KITCHENSINKER TRUSTS THE AGENCY ALSO QUESTIONS WHETHER THE KITCHENSINKERS' TRIPLEA RATINGS WHICH MEASURE THE LIKELIHOOD OF INVESTORS' RECEIVING SPECIFIED AMOUNTS OF CASH FLOW NOT THE RISKINESS OF THE BONDS MIGHT BE MISLEADING WHILE THE SEC HAS RAISED CONCERNS ABOUT THE APPROPRIATENESS OF KITCHENSINKERS FOR SMALL INVESTORS UNDERWRITERS SAY THAT'S A MOOT POINT SINCE THESE SECURITIES HAVEN'T BEEN SOLD TO INDIVIDUALS THE SEC WON'T COMMENT ABOUT ITS MEETINGS WITH UNDERWRITERS AND RATING AGENCIES BUT PEOPLE ON WALL STREET FAMILIAR WITH THE DISCUSSIONS SAY THE AGENCY'S INTEREST MAY GO BEYOND KITCHENSINKERS IN THE COURSE OF A MEETING TWO WEEKS AGO BETWEEN SEC OFFICIALS AND REPRESENTATIVES FROM FITCH INVESTORS SERVICE A NEW YORK RATING AGENCY SEC OFFICIALS ALSO QUESTIONED THE APPLICATION OF A TRIPLEA RATING TO SECURITIES BACKED BY WHOLE LOANS OR MORTGAGES ON COMMERCIAL REAL ESTATE AND OTHER BIG PROPERTIES SENIOR SEC OFFICIALS FROM THE DIVISIONS OF MARKET REGULATION AND CORPORATE FINANCE FIRST BEGAN MEETING WITH REPRESENTATIVES FROM WALL STREET FIRMS IN NOVEMBER AFTER REPORTS IN THIS NEWSPAPER RAISED DOUBTS ABOUT INVESTORS' ABILITY TO ANALYZE THE COMPLEX SECURITIES REP HENRY B GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING FINANCE AND URBAN AFFAIRS COMMITTEE HAS ECHOED THOSE CONCERNS I AM AFRAID THAT THESE SECURITIES LIKE OTHER DERIVATIVES PILE RISK ON TOP OF RISK HE SAYS CURRENTLY THE SEC DOESN'T REQUIRE UNDERWRITERS OF KITCHENSINKER TRUSTS TO DISCLOSE WHERE THE RECYCLED CMOS CAME FROM WHAT THEIR CHARACTERISTICS ARE WHO ORIGINALLY UNDERWROTE THEM HOW THE CMOS WERE PRICED WHEN CONTRIBUTED TO THE TRUST OR THE VALUATION METHOD USED ONE MONEY MANAGER WITH 2 BILLION INVESTED IN MORTGAGEBACKED SECURITIES SAYS IT WOULD TAKE HIM SEVERAL HOURS ON A HIGHSPEED COMPUTER TO FIGURE OUT HOW THE KITCHENSINKERS WOULD REACT TO CHANGES IN INTEREST RATES DESPITE THEIR COMPLEXITIES KITCHENSINKERS ENJOY MORE LENIENT DISCLOSURE REQUIREMENTS THAN NORMAL BOND OFFERINGS OR PUBLIC SALES OF STOCK THAT'S BECAUSE THE CMOS THAT BACK THEM ARE DERIVED FROM MORTGAGES THAT ARE GUARANTEED BY GOVERNMENTSPONSORED AGENCIES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP AS A RESULT KITCHENSINKERS ARE DEEMED TO BE GOVERNMENT SECURITIES WHICH EXEMPTS THEM FROM DISCLOSURE RULES OF THE SECURITIES ACT OF 1933 THE FACT THAT MANY KITCHENSINKERS HAVE BEEN BLESSED WITH A TRIPLEA RATING ALSO WORRIES REGULATORS SENIOR SEC OFFICIALS SAY INVESTORS MAY MISUNDERSTAND WHAT THAT RATING REPRESENTS SINCE THE TRIPLEA RATING ON THESE BONDS HAS NOTHING TO DO WITH THE SAFETY OF THESE INVESTMENTS BUT ONLY WITH THE LIKELIHOOD THAT INVESTORS WILL RECEIVE THEIR CASH FLOWS AS PROMISED AS LONG AS 30 YEARS FROM NOW THE SEC WANTS TO KNOW HOW WE DO OUR ANALYSIS OF CASH FLOW SAYS STEPHEN JOYNT EXECUTIVE VICE PRESIDENT OF MORTGAGEBACKED SECURITIES AT FITCH WE ARE TRYING TO BE RESPONSIVE TO THEM THE QUESTION IS WHETHER A RATING CAN BE LIMITED AS NARROWLY AS THESE RATINGS ARE SAYS ANDREW JONES AN ANALYST AT DUFF & PHELPS WHICH HAS RATED MANY KITCHENSINKERS CERTAINLY NONE OF THAT SEEMS TO MATTER SO FAR TO INVESTORS WHO REMAIN DAZZLED BY THEIR FAT YIELDS OF TWO PERCENTAGE POINTS OVER SHORTTERM FLOATINGRATE NOTES SEE RELATED LETTER LETTERS TO THE EDITOR S&P DOESN'T RATE KITCHENSINK BONDS WSJ FEB 17 1994 9402020100 YY94 MM02 9402170071 940217 BUSINESS BRIEF LOEWS CORP PARENT UNIT POST EARNINGS REVERSE YEAREARLIER LOSSES LOEWS CORP AND ITS CNA FINANCIAL CORP INSURANCE UNIT REVERSED YEAREARLIER LOSSES IN THE FOURTH QUARTER LOEWS EARNED 1384 MILLION OR 220 A SHARE DESPITE A 49 DECREASE IN NET INCOME AT ITS LORILLARD CIGARETTE UNIT LORILLARD SALES DECLINED BECAUSE OF THE PRICE CUTTING ON CIGARETTES IN THE FOURTH QUARTER OF 1992 LOEWS IN NEW YORK LOST 6207 MILLION OR 953 A SHARE WHICH INCLUDED A CHARGE OF 8227 MILLION FOR RESERVE ADDITIONS FOR ASBESTOSRELATED BODILY INJURY CLAIMS AT ITS MAJORITYOWNED CNA INSURANCE UNIT CNA BASED IN CHICAGO EARNED 874 MILLION OR 140 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 9143 MILLION OR 1481 A SHARE THE RESERVE ADDITIONS FOR ASBESTOS CLAIMS EXPLAIN THE LOSS IN 1992 LOEWS OWNS ABOUT 83 OF CNA 9402170070 940217 BUSINESS BRIEF BAT INDUSTRIES PLC INSURER FACES 600 MILLION IN CLAIMS FOR EARTHQUAKE FARMERS INSURANCE GROUP ESTIMATED IT WILL PAY 600 MILLION IN CLAIMS FOR THE LOS ANGELES EARTHQUAKE ONE OF THE HIGHEST CLAIMS PAYOUTS YET REPORTED BY AN INSURANCE COMPANY ON THE DISASTER THE CLAIMS ARE ABOUT EVENLY SPLIT BETWEEN COMMERCIAL CLAIMS AND CLAIMS FILED BY INDIVIDUALS ON THEIR HOMES AND CARS SO FAR 27000 CLAIMS HAVE BEEN REPORTED THE LOS ANGELESBASED COMPANY A UNIT OF BA T INDUSTRIES PLC IS THE COUNTRY'S THIRDLARGEST HOME INSURER THE NATION'S LARGEST HOME INSURER STATE FARM MUTUAL AUTOMOBILE INSURANCE ASSOCIATION ALSO SAID IT WILL PAY AT LEAST 600 MILLION IN CLAIMS THE COMPANY HAS RECEIVED 80000 CLAIMS INSURANCE COMPANIES EXPECT TO PAY 25 BILLION ON THE EARTHQUAKE MAKING IT ONE OF THE MOST EXPENSIVE INSURANCE DISASTERS IN US HISTORY 9402170069 940217 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN HUNGARY'S NATIONAL ASSEMBLY OUTLAWED ACTIVITIES SUCH AS MONEY LAUNDERING AND INSIDER TRADING WHICH HADN'T BEEN COVERED BY LAW IN THE FORMER COMMAND ECONOMY THE MEASURE RESPONDS TO CORRUPTION THAT HAS SWELLED SINCE HUNGARY BEGAN PURSUING MARKET REFORMS IN 1989 IT ALSO COVERS COMMERCIAL SECRETS GUN SMUGGLING MISREPRESENTATION OF GOODS FAILURE TO DISCLOSE COMPANY DATA TO AUTHORITIES AND FORGERY VIOLATORS MAY BE IMPRISONED AS LONG AS EIGHT YEARS BUT ENFORCEMENT COULD BE HINDERED WITHOUT COMPANION BANKING LAWS SAID A SPECIALIST AT THE NATIONAL INSTITUTE OF CRIMINOLOGY NOTING THAT HUNGARY IS A POPULAR LOCALE FOR MONEY LAUNDERING THE GOVERNMENT HAS DRAFTED A BILL FOR INTRODUCTION THIS SPRING TO REQUIRE BANKS TO IDENTIFY CUSTOMERS IN TRANSACTIONS OF MORE THAN 2 MILLION FORINTS 19660 AND TO REPORT ANY SUSPICIOUS DEALINGS TO POLICE WESTERN GERMANY'S GROSS DOMESTIC PRODUCT CONTRACTED 05 IN THE FOURTH QUARTER FROM THE THIRD PERIOD REVERSING MILD GROWTH IN THE FIRST AND SECOND QUARTERS THE CENTRAL BANK SAID RECESSIONBATTERED EMPLOYERS HAVE SOUGHT TO CUT COSTS PARTLY BY HOLDING WAGE INCREASES BELOW THE INFLATION RATE BUT THE GIANT IG METALL UNION SAID IT REJECTED A NEW WAGE PROPOSAL FROM THE GESAMTMETALL EMPLOYERS GROUP AND THE METALWORKERS RESUMED WARNING STRIKES THEIR TALKS HAD STALLED OVER DEMANDS FOR GREATER PAY OR JOB SECURITY BEIJING WILL GIVE TAIWAN PRIORITY OVER OTHER FOREIGN INVESTORS IN ALL SECTORS OF THE CHINESE CAPITAL WHICH CONSIDERS THE ISLAND REPUBLIC AN EXTENSION OF CHINA'S ECONOMY THE CHINA DAILY SAID THE OFFICIAL PAPER SAID BEIJING DROPPED A BAN ON TAIWAN'S INVOLVEMENT IN THE CITY'S BANKING AND FINANCE BUT BEIJING IS MOVING TO LIMIT TAIWAN'S HUGE INVESTMENT IN REAL ESTATE WHICH THE NEWSPAPER SAID HAS DRIVEN PRICES UP AND LED TO OVERDEVELOPMENT TAIWAN'S APPROVED INVESTMENT IN CHINA IN LAST YEAR'S FIRST 10 MONTHS WAS 28 BILLION COMPARED WITH 247 MILLION IN ALL OF 1992 WESTERN EUROPEANS PRODUCE LESS THAN HALF THE GARBAGE THAT US RESIDENTS GENERATE THE EUROPEAN UNION'S STATISTICS AGENCY SAID TRASH PER PERSON IN THE 12 EU MEMBER STATES AVERAGES 660 POUNDS A YEAR COMPARED WITH 902 POUNDS IN JAPAN AND 1584 POUNDS IN THE US EUROSTAT SAID RECYCLING IS INCREASING THROUGHOUT THE TRADE BLOC THE EU COUNTRIES WITH A TOTAL POPULATION OF 340 MILLION RECYCLE 40 OF GLASS CARDBOARD AND PAPER REFUSE WHILE THE US WITH THREEFOURTHS AS MANY RESIDENTS RECYCLES 30 OF PAPER AND CARDBOARD AND 20 OF GLASS THE AGENCY CALCULATED THE SPANISH GOVERNMENT WILL AWARD THE COUNTRY'S FIRST MOBILETELEPHONE LICENSES THIS YEAR BREAKING TELEFONICA DE ESPANA'S MONOPOLY THE PUBLIC WORKS MINISTRY TOLD NATIONAL LEGISLATORS THE AGENCY HAS BEEN EXPECTED TO LIBERALIZE THE SECTOR AND SEVERAL GROUPS INCLUDING SPANISH BANKS AND UTILITIES HAVE BEEN PREPARING BIDS FOR THE LICENSES BUT UNDER EUROPEAN UNION RULES TELECOMMUNICATIONS MONOPOLIES NEEDN'T BE DISMANTLED UNTIL 1988 IN BRUSSELS THE EU INDUSTRY CHIEF MARTIN BANGEMANN SAID MEMBERS' SLOW PACE OF LIBERALIZING THE SECTOR IS HAMPERING DEVELOPMENT OF PANEUROPEAN DATACOMMUNICATION NETWORKS THE 13NATION EUROPEAN SPACE AGENCY APPROVED A 227 MILLION MANNED SPACE PROGRAM AND A 299 MILLION COLUMBUS MODULE FOR THE FREEDOM SPACE STATION BEING PREPARED BY THE US THE PROJECTS INCLUDE A FOURPERSON TRANSPORTATION VEHICLE THE AGENCY WHICH SCUTTLED MORE AMBITIOUS PLANS LAST YEAR SAID THE LATEST DECISIONS CONFIRMED EUROPEANS' RESOLVE TO PARTICIPATE WITH THE US RUSSIA JAPAN CANADA AND OTHER PARTNERS IN DEVELOPING AN INTERNATIONAL SPACE STATION INDONESIAN AUTHORITIES ARRESTED AN OFFICIAL OF A STATEOWNED BANK AND BLOCKED FOUR OTHERS FROM LEAVING THE COUNTRY IN CONNECTION WITH A LOAN TO A BUSINESSMAN THE GOVERNMENT IS INVESTIGATING THE LOAN BY THE INDONESIAN DEVELOPMENT BANK KNOWN AS BAPINDO TO EDDY TANSIL HEAD OF THE GOLDEN KEY GROUP MEMBERS OF PARLIAMENT HAVE PRESSED UNSUCCESSFULLY FOR DETAILS OF THE 430 MILLION LETTER OF CREDIT APPARENTLY ARRANGED FOR MR TANSIL FOR A PETROCHEMICAL PLANT IN WEST JAVA THE CREDIT ALLEGEDLY ALLOWED MR TANSIL TO DRAW FUNDS OVERSEAS BEFORE EQUIPMENT FOR THE PLANT WAS SHIPPED AN UNUSUAL FEATURE BECAUSE IT LESSENS A BANK'S ABILITY TO MONITOR USE OF THE MONEY THE LOAN ALSO MAY HAVE BEEN MADE WITHOUT ADEQUATE COLLATERAL AND VIOLATED BANKING LAWS ON EXCESSIVE LENDING TO INDIVIDUALS GOVERNMENT AND BAPINDO OFFICIALS HAVE TOLD PARLIAMENT THAT BANKING SECRECY LAW PREVENTS THEM FROM DISCUSSING THE LOAN WHICH A LEGISLATOR SAID COULD CAUSE A GOVERNMENT LOSS OF 6146 MILLION INCLUDING INTEREST STATE BANKS HAVE BEEN WIDELY ACCUSED OF MAKING MANY MORE POTENTIALLY QUESTIONABLE LOANS VENEZUELA WHERE THE BIGGEST CURRENCY DENOMINATION IS 1000 BOLIVARS 918 WILL ISSUE BANKNOTES OF 2000 AND 5000 BOLIVARS IN RESPONSE TO RISING INFLATION WHICH RAN AT 46 IN 1993 ABOUT 10 OF ROME'S SHOPS OPENED ON THE FIRST SUNDAY AFTER THE ITALIAN CAPITAL ALLOWED COMMERCE SEVEN DAYS A WEEK TRADITIONALISTS COMPLAINED THAT SUNDAYS SHOULD BE RESERVED FOR CHURCH FAMILY AND REST 9402170068 940217 BUSINESS BRIEF KOMAG INC FISCAL FOURTHQUARTER LOSS POSTED ON OVERHAUL CHARGE KOMAG INC SAID IT HAD A FISCAL FOURTHQUARTER LOSS FOLLOWING A 354 MILLION CHARGE TO COVER A RESTRUCTURING OF DASTEK INC A JOINT VENTURE WITH JAPAN'S ASAHI GLASS CO FOR THE QUARTER ENDED JAN 2 THE MILPITAS CALIF COMPANY REPORTED A LOSS OF 297 MILLION OR 135 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 44 MILLION OR 20 CENTS A SHARE SALES DECLINED 53 TO 912 MILLION FROM 963 MILLION THE YEAREARLIER PERIOD WAS A WEEK LONGER THAN THE LATEST QUARTER KOMAG MAKES THINFILM COMPONENTS FOR DISK DRIVES DASTEK WHICH MAKES RECORDING HEADS USED IN DISK DRIVES WILL EXIT FROM THE MARKET FOR INDUCTIVE THINFILM HEADS KOMAG SAID AS A RESULT OF THE RESTRUCTURING CHARGE KOMAG SAID IT IS CURRENTLY IN VIOLATION OF CERTAIN BANKDEBT COVENANTS IT EXPECTS TO OBTAIN NECESSARY WAIVERS FROM LENDERS WITHIN WEEKS FOR THE 52 WEEKS KOMAG HAD A LOSS OF 99 MILLION OR 45 CENTS A SHARE COMPARED WITH PROFIT OF 169 MILLION OR 79 CENTS A SHARE IN THE 53 WEEKS A YEAR EARLIER SALES ROSE 18 TO 3854 MILLION 9402170066 940217 BUSINESS BRIEF LONE STAR INDUSTRIES INC VOTE BY CREDITORS REJECTS OUTSIDE REORGANIZATION PLAN LONE STAR INDUSTRIES INC SAID THAT MOST OF ITS CREDITORS VOTED TO REJECT A REORGANIZATION PLAN PROPOSED BY EQUITY SECURITY HOLDERS WHICH EFFECTIVELY ALLOWS A COMPANYSPONSORED PLAN TO GO FORWARD THE STAMFORD CONN CONSTRUCTIONMATERIAL COMPANY WHICH HAS BEEN OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE DECEMBER 1990 SAID ITS PLAN STILL NEEDS THE APPROVAL OF THE US BANKRUPTCY COURT IN NEW YORK A MAJORITY OF CREDITORS EARLIER HAD VOTED IN SUPPORT OF THE LONE STAR PLAN UNDER LONE STAR'S REORGANIZATION PLAN THE COMPANY INTENDS TO PAY BETWEEN 85 AND 100 OF ABOUT 570 MILLION IN UNSECURED CLAIMS ON A PRO RATA BASIS BUT HOLDERS OF COMMON STOCK WOULD SEE THEIR OWNERSHIP CUT TO ABOUT 45 WHILE PREFERRED SHAREHOLDERS WILL RECOVER BETWEEN 45 TO 60 OF THEIR CLAIMS 9402170065 940217 LEISURE & ARTS BOOKSHELF THE PSYCHOLOGY OF HOARDING BY ERIC GIBSON WHAT MAKES ART COLLECTORS TICK ARE THEY REALLY HAPPY AFTER THEY'VE SPENT ALL THAT MONEY ON ALL THOSE THINGS WHY DO THEY BUY WHAT THEY BUY DO THEY ALL KNOW WHAT THEY'RE DOING WERNER MUENSTERBERGER A PSYCHOANALYST IN NEW YORK HAS BENT HIMSELF TO THE TASK OF FINDING OUT AND PRODUCED IN COLLECTING AN UNRULY PASSION PRINCETON UNIVERSITY PRESS 295 PAGES 2495 A BOOK THAT SEEKS TO REVISE OUR UNDERSTANDING OF WHAT THE ACQUISITION OF OBJECTS IS ALL ABOUT IT IS A FASCINATING OCCASIONALLY UNSETTLING BOOK MOST PREVIOUS BOOKS ON COLLECTING HAVE FOCUSED ON ART COLLECTORS AND IN SOME CASES THE COMMERCIAL DEALERS WHO MADE THEIR PURCHASES POSSIBLE BUT IT IS COLLECTING IN THE BROADEST SENSE OF THE TERM THAT LIES AT THE HEART OF DR MUENSTERBERGER'S STUDY FINE AND DECORATIVE ART IS INVOLVED TO BE SURE BUT SO IS JUST ABOUT ANYTHING ELSE INDIVIDUALS HAVE BEEN SQUIRRELING AWAY OVER THE CENTURIES BOOKS SKULLS TULIPS SHELLS TEDDY BEARS TRAVEL GUIDES AND MAPS APOTHECARY JARS AS HE LOOKS INTO THESE TROVES DR MUENSTERBERGER ALSO DESCRIBES THEIR OWNERS RUNNING THE GAMUT OF COLLECTOR TYPES WE READ ABOUT COLLECTORS WHO WANT ONLY THE BEST THOSE WHO WANT EVERYTHING THEY CAN GET THEIR HANDS ON COLLECTORS WHO CONTINUALLY TRADE UP UNTIL THE FINEST EXAMPLE IS IN THEIR HANDS COLLECTORS WHO LOVE POTPOURRIS AND UNLIKE MOST PREVIOUS BOOKS ON COLLECTING WHICH SO OFTEN FOCUS ON PERSONALITIES DR MUENSTERBERGER DELVES DEEPER SEARCHING FOR THE INNER IMPULSE THAT PROMPTS INDIVIDUALS SOMETIMES QUITE LATE IN LIFE TO TROLL AUCTIONS PRIVATE HOUSES DEALERS EVEN THE HOMES OF THE NEWLY DECEASED TO SATISFY THEIR TASTE FOR CERTAIN OBJECTS HE WANTS TO KNOW WHAT BOND COULD BE UNITING SUCH DIVERSE PEOPLE EARLY ON THE AUTHOR PROVIDES SOMETHING OF AN ANSWER WHEN HE WRITES OF COLLECTORS THE ROOTS OF THEIR PASSION CAN ALMOST ALWAYS BE TRACED BACK TO THEIR FORMATIVE YEARS OFTEN HIDDEN FROM THEIR CONSCIOUS AWARENESS COLLECTING HE CONTINUES IS AN ALMOST MAGICAL MEANS FOR UNDOING THE STRAINS AND STRESSES OF EARLY LIFE AND ACHIEVING THE PROMISE OF GOODNESS DEPENDING ON YOUR OPINION OF PSYCHOANALYSIS THIS INTERPRETATION IS LIKELY TO SOUND EITHER FARFETCHED OR FACILE BUT DR MUENSTERBERGER OFTEN OVERCOMES THE READER'S SKEPTICISM BOTH BY THE VOLUME AND VARIETY OF EVIDENCE HE INTRODUCES TO BOLSTER HIS CASE ONE EXAMPLE HE CITES IS THE 19THCENTURY ENGLISH ECCENTRIC SIR THOMAS PHILLIPS TODAY HIS FAME RESTS ON HIS ACTIVITIES AS A BOOK AND MANUSCRIPT COLLECTOR BUT HE STARTED OUT ACQUIRING CHURCH RECORDS DEEDS AND GRAVESTONES EVIDENCE OF A FASCINATION WITH GENEALOGY THAT DR MUENSTERBERGER TRACES TO HIS SHAME OVER BEING AN ILLEGITIMATE CHILD THEN THERE IS THE COLLECTOR WHOSE INTEREST IN TRAVEL AND GUIDEBOOKS GREW OUT OF HIS CHILDHOOD EXPERIENCES MAPREADING FOR HIS PERFORMER PARENTS AS THEY DROVE AROUND THE COUNTRY FROM ONE ENGAGEMENT TO THE NEXT KNOWING WHERE HE WAS GOING AND HELPING THE FAMILY GET THERE HE EXPLAINED TO THE AUTHOR RELIEVED THE ANXIETIES OF ROOTLESSNESS IN THE COURSE OF HIS DISCUSSION DR MUENSTERBERGER MANAGES TO OVERTURN A NUMBER OF FUNDAMENTAL ASSUMPTIONS ABOUT THE ACTIVITY OF COLLECTING THE MOST OBVIOUS OF THESE IS THE NOTION THAT COLLECTORS ARE MOTIVATED BY INTELLECTUAL CURIOSITY AN APPRECIATION OF BEAUTY OR BOTH NOT SO INSISTS THE AUTHOR THESE ARE ANCILLARY RATHER THAN CENTRAL FACTORS HE CLAIMS THE MAIN IMPULSE IS COMPENSATORY A WAY OF MAKING UP FOR SOME EARLY HURT TO READ DR MUENSTERBERGER IN FACT THE APPRECIATION OF BEAUTY DOESN'T ENTER INTO COLLECTING AT ALL DOES THIS MEAN THAT GIOVANNI BELLINI'S MAGNIFICENT SAINT FRANCIS IN ECSTASY HANGS IN THE FRICK COLLECTION TODAY ONLY BECAUSE OF SOME DEEP RUPTURE IN CHILDHOOD PSYCHE OF HENRY CLAY FRICK IF THAT'S THE CASE MAYBE NEUROSIS ISN'T SUCH A BAD THING AFTER ALL AT LEAST IT CAN PROVIDE PLEASURE TO A LOT OF PEOPLE ANOTHER OF THE BOOK'S CASUALTIES IS THE IDEA OF COLLECTING AS A REFINED DISCRIMINATING ACTIVITY PRACTICED ONLY BY GENTLEMEN AND A FEW GENTLEWOMEN IN HIS BOOK DR MUENSTERBERGER DRAWS COMPARISONS BETWEEN COLLECTING AND LESS SOCIALLY ACCEPTABLE PURSUITS SUCH AS DRUG ADDICTION AND SEXUAL LIBERTINISM HE QUOTES FROM J PAUL GETTY'S DIARY IN WHICH THE BILLIONAIRE ODDBALL DESCRIBED HIMSELF AS AN INCURABLY HOOKED COLLECTOR ONE WHO WAS ONCE AGAIN IN 1960 DETERMINED TO REFORM MY MIND IS SET I AM NOT GOING TO CHANGE IT BUT HE FELL OFF THE WAGON WHEN A PAINTING BY PIERRE BONNARD CAME UP FOR SALE SET MIND OR NOT HE WROTE I WAS UNABLE TO RESIST THEN THERE WAS THE COLLECTOR WHO LIKENED THE DISCOVERY OF AN OBJECT HE WANTED TO BUY TO SEEING A BEAUTIFUL BODY HE SIMPLY HAD TO MAKE LOVE TO AND DR MUENSTERBERGER POINTS OUT THAT LIKE THE TYPICAL DON JUAN WHO IS MORE INTERESTED IN CONQUEST THAN A LONGTERM RELATIONSHIP OWNERSHIP FOR SOME COLLECTORS OFFERS ONLY MOMENTARY SATISFACTIONS WHAT THEY REALLY LIVE FOR IS THE CHASE AND CAPTURE SOMETIMES THE ALLCONSUMING WILL TO POSSESS OVERWHELMS EVERY OTHER CONSIDERATION TURNING THE COLLECTOR INTO A MONSTER ONCE HE GOT STARTED SIR THOMAS PHILLIPS'S DETERMINATION TO OWN A COPY OF EVERY BOOK IN EXISTENCE WAS SO GREAT IT MADE HIM NEGLECT HIS CREDITORS AND HIS FAMILY DRIVING HIS WIFE TO AN EARLY GRAVE MR GIBSON IS A FREELANCE ART CRITIC 9402170064 940217 BUSINESS BRIEF SPIEGEL INC NET ROSE 55 IN 4TH QUARTER AS DISCOUNTING DECREASED SPIEGEL INC HELPED BY STRENGTHENING PROFIT MARGINS SAID FOURTHQUARTER EARNINGS ROSE 55 ON AN 18 INCREASE IN SALES THE CATALOG APPAREL RETAILER BASED IN DOWNERS GROVE ILL HAD NET INCOME OF 558 MILLION OR 53 CENTS A SHARE UP FROM 361 MILLION OR 35 CENTS A SHARE A YEAR EARLIER SALES CLIMBED TO 103 BILLION FROM 8691 MILLION IN NASDAQ STOCK MARKET SPIEGEL CLASS A SHARES JUMPED 175 OR 89 TO 2150 SPIEGEL ATTRIBUTED THE EARNINGS TO LESS DISCOUNTING OF ITS PRODUCTS AND TO INCREASED SALES OF ITS PRIVATELABEL PRODUCTS THOSE PRODUCTS ARE LESS COSTLY TO SPIEGEL BECAUSE THEY'RE DESIGNED INHOUSE RATHER THAN BY MANUFACTURERS THE COMPANY ALSO SAID THAT ITS EDDIE BAUER SUBSIDIARY CONTINUED TO ENJOY CONSISTENTLY STRONG GAINS IN ITS COMPARABLESTORE AND CATALOG SALES 9402170063 940217 BUSINESS BRIEF CAMPBELL SOUP CO FISCAL 2NDQUARTER PROFIT REVERSED YEAREARLIER LOSS CAMPBELL SOUP CO AIDED BY AN ACQUISITION LAST YEAR POSTED RECORD SALES AND EARNINGS FOR THE FISCAL SECOND QUARTER THE CAMDEN NJ MAKER OF FOOD PRODUCTS REPORTED PROFIT FOR THE QUARTER ENDED JAN 30 OF 203 MILLION OR 81 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 121 MILLION OR 48 CENTS A SHARE WHICH INCLUDED A 353 MILLION CHARGE FOR DIVESTITURE AND RESTRUCTURING SALES ROSE 6 TO 189 BILLION FROM 179 BILLION THE RESULTS MAINLY REFLECTED THE ACQUISITION LAST YEAR OF A MAJORITY OWNERSHIP IN AUSTRALIAN BISCUIT MAKER ARNOTTS LTD WHICH BOOSTED SALES OF CAMPBELL'S BISCUIT AND BAKERY OPERATIONS BY 48 IN LATE NEW YORK STOCK EXCHANGE TRADING CAMPBELL SOUP SHARES ROSE 875 CENTS A SHARE TO 4075 9402170062 940217 PEPPERAND SALT TEEM WITH TONS OF INFORMATION WITH BOASTS OF NUTRIENTS AND TASTE AND VALUE OF THE FOOD INSIDE AREN'T THESE BOXES GETTING LIGHTER PRICE THE SAME CONTENTS DEFLATED 9402170061 940217 LEISURE & ARTS FILM FIORILE' OR THE CURSE OF THE BLESSED BY JULIE SALAMON LEGENDS AREN'T LEGENDS A GRANDFATHER TELLS HIS GRANDCHILDREN THEY ARE REAL THE GRANDCHILDREN ALREADY KNOW THIS THEY HAVEN'T DISMISSED ANCIENT STORIES OF THEIR FAMILY'S TROUBLED HISTORY AS FAIRY TALES FOR THEM THE DISTANT PAST IS CLOSE SO CLOSE THAT ON A DRIVE THROUGH THE ITALY OF TODAY THEY CAN SEE NAPOLEON'S SOLDIERS MARCHING THROUGH THE TUSCAN COUNTRYSIDE THEY FEEL THEY HAVE ACTUALLY WITNESSED THE FATAL ATTRACTION THAT SPAWNED THE BENEDETTI CURSE EVEN THOUGH IT TOOK PLACE TWO CENTURIES BEFORE THE CHILDREN ARE MODERNDAY BENEDETTIS COMING BACK TO THEIR TUSCAN HOMELAND FOR THE FIRST TIME THEIR FATHER HASN'T SEEN HIS FATHER FOR 10 YEARS BEFORE HIS OWN CHILDREN WERE BORN ON THE WAY HE TELLS THEM THEIR FAMILY'S HISTORY PERHAPS JUST TO PASS THE TIME PERHAPS TO WARN THEM ABOUT THEIR HAUNTED LINEAGE FIORILE THE MOVIE IN WHICH ALL THIS TAKES PLACE SHOWS US HOW THE CHILDREN HEAR THESE STORIES NOT AS LEGEND BUT AS LIFE VIVID AND INESCAPABLE THIS MERGING OF EXPERIENCE AND ENCHANTMENT IS A SPECIALTY OF THE ITALIAN FILMMAKERS PAOLO AND VITTORIO TAVIANI AT THEIR BEST MOST COMPLETELY IN THE NIGHT OF THE SHOOTING STARS THESE TALENTED BROTHERS CREATE A FEVERISH REALITY THE WORLD AS IT MIGHT APPEAR IN A HALLUCINATION IN FIORILE THE MAGIC COMES AND GOES LIKE AN EARLY MORNING DREAM FIGHTING THE RUDE VOICES SPUTTERING FROM THE RADIO ALARM THE GENERATIONAL LEAPS ARE MADE ABRUPTLY WITHOUT AN EMOTIONAL BRIDGE TO CONNECT ONE GROUP OF BENEDETTIS TO THE NEXT STILL EVEN WITHOUT FULFILLING THE EPIC PROMISE IN ITS BIG HISTORICAL SPAN FIORILE CONTAINS MUCH BEAUTY MANY SCENES SHOT WITH STUNNING GRACE IT'S PART OF A CINEMATIC VISION THE TAVIANIS HAVE BEEN DEVELOPING OVER YEARS OF COLLABORATION WITH CINEMATOGRAPHER GIUSEPPE LANCI AND COMPOSER NICOLA PIOVANI AS WELL AS WITH THE SAME EDITOR COSTUME DESIGNER AND ART DIRECTOR JUMPING DOWN THE DECADES THE FILMMAKERS TELL THE TALE OF THE BENEDETTIS AND HOW THEY BECAME NOT BENEDETTI THE BLESSED BUT MALEDETTI THE CURSED IT ALL BEGAN DURING THE NAPOLEONIC WARS WHEN A YOUNG FRENCH LIEUTENANT NAMED JEAN MICHAEL VARTAN MARCHED ACROSS TUSCANY WITH HIS COMRADES THE MOVIEMAKERS PAINT THESE YOUNG MEN AS IDEALISTS WITH PLANS TO REINVENT THE WORLD AS THEY THOUGHT IT SHOULD BE THEY WOULD CHANGE EVERYTHING BETTER THE LOT OF THE PEASANTS RENAME THE CALENDAR THEY WOULD CALL MAY THE MONTH THEY MARCHED INTO TUSCANY FIORILE FLORAL HANDSOME YOUNG JEAN IN CHARGE OF GUARDING THE ARMY'S GOLD IS DISTRACTED FROM HIS MISSION BY A PRETTY ITALIAN PEASANT GIRL ELISABETTA BENEDETTI GALATEA RANZI HIS FEELINGS TOWARD HER ARE NOT REVOLUTIONARY AT ALL BUT VERY TRADITIONAL HE SEES HER AND FALLS IN LOVE EVER THE REVOLUTIONARY HE RENAMES HER TOO HE GIVES HER THE NAME OF THE MONTH WHEN THEY MEET FIORILE WHILE ELISABETTA AND JEAN MAKE LOVE HER BROTHER STEALS THE FRENCH ARMY'S GOLD THEIR PARENTS WANT TO RETURN THE GOLD UNTIL THEY FIND OUT WHAT JEAN'S BEEN DOING WITH THEIR DAUGHTER THEN THEY FEEL JUSTIFIED IN LETTING JEAN TAKE HIS PUNISHMENT AND KEEPING THE MONEY SO PASSION LEADS TO DEATH FOR JEAN BETRAYAL FOR ELISABETTA AND A CHANGE OF FORTUNE FOR THE BENEDETTI FAMILY FROM THEN ON THEY WOULD BE RICH BUT HAUNTED BY THE TAINTED SOURCE OF THEIR WEALTH AS THE STORY MOVES FORWARD IN TIME THE THEMES CONTINUE GREAT PASSIONS ARE STOPPED BY BETRAYAL GOOD INTENTIONS ARE THWARTED BY FORCES OF EVIL THE BENEDETTIS OF THE PRESENT HAVE LITTLE OF THEIR ANCESTOR'S WILD PASSIONS THEY ARE PART OF THE HOMOGENIZED UPPERMIDDLE CLASS WITH THEIR CHINOS AND CORDLESS TELEPHONES IF THEY DIDN'T SPEAK FRENCH AND ITALIAN THE MOTHER IS FRENCH THEY COULD BE MISTAKEN FOR WELLHEELED AMERICAN TOURISTS OR ENGLISH OR GERMAN THEY HAVE LITTLE CONNECTION TO THEIR PAST AS THEY ENTER THE MANSION THAT ONCE BELONGED TO THE FAMILY ONE OF THE CHILDREN ASKS ABOUT THE CREST OVER THE DOOR JUST A DECORATION HIS MOTHER SAYS WITHOUT INTEREST THE BLANDNESS OF THESE BENEDETTIS MAKES THEM THE MOVIE'S WEAK LINK THE SPELL BREAKS WHENEVER THE STORY RETURNS TO THEM AND THE PRESENT IN THESE SCENES THE MOVIE COULD BE JUST ANY MOVIE BUT WHEN THE NARRATIVE TURNS TO THE PAST THE TAVIANIS UNLEASH THEIR SPECIAL LYRICISM THEIR UNUSUAL CAPACITY TO VISUALIZE MYTHIC CHARACTERS IN A WAY THAT IS PASSIONATELY INTENSE YET NATURAL IN THE END IT ACCOMPLISHES ITS MISSION TO BRING TO LIFE THE BONDS BETWEEN PAST AND PRESENT MYTH AND REALITY VIDEO TIP IF YOU HAVEN'T SEEN IT GIVE YOURSELF THE PLEASURE OF THE NIGHT OF THE SHOOTING STARS IT'S ABOUT A WOMAN'S MEMORIES OF HER WORLD WAR II CHILDHOOD IN A TUSCAN VILLAGE BUT IT'S LIKE NO OTHER WAR MOVIE IT'S TERRIFYING AND MAGICAL AND UNDERSTANDS THE WAY FANTASY AND MEMORY CAN COME TOGETHER TO TRANSFORM HORRIFYING EVENTS INTO SOMETHING COMPREHENSIBLE INTO MYTH 9402170060 940217 LETTERS TO THE EDITOR S&P DOESN'T RATE KITCHENSINK BONDS IN YOUR FEB 2 MONEY & INVESTING ARTICLE KITCHENSINK BONDS PROMPT SEC REVIEW YOU ACCURATELY ADDRESSED THE HIDDEN RISKS IN KITCHENSINK OR CASHFLOW BONDS BUT FAILED TO MENTION THAT STANDARD & POOR'S REFUSES TO RATE THESE ISSUES PRECISELY BECAUSE OF THE CONCERNS DESCRIBED AS THE ARTICLE NOTED REGULATORS ARE CONCERNED BECAUSE INVESTORS MAY MISUNDERSTAND WHAT INVESTMENTGRADE RATINGS REPRESENT AS THEY RELATE TO THESE SECURITIES BUT IT LEFT THE IMPRESSION THAT ALL RATING AGENCIES PROVIDED TRIPLEA OR TOP RATINGS TO THESE RISKY INVESTMENT THAT IS NOT THE CASE ALTHOUGH S&P HAS BEEN REGULARLY APPROACHED TO RATE CASHFLOW BONDS WE HAVE DECLINED TO DO SO WHILE THE INSTRUMENTS HAVE TO DATE BEEN LIMITED TO LARGE INSTITUTIONAL INVESTORS IT IS IMPORTANT TO S&P THAT ITS RATINGS BE UNDERSTOOD BY THE BROAD RANGE OF INVESTORS SO THEY ARE NOT LEFT WITH A FALSE SENSE OF SECURITY 9402170059 940217 LEISURE & ARTS QUEEN OF SUBTITLERS THE INVISIBLE OSCAR CONTENDER BY ANNA BRAY NEW YORK NOT MANY PEOPLE SPEND THEIR LIVES HOPING THEIR BEST WORK WILL NOT DRAW ATTENTION TO ITSELF HELEN MILSTED EISENMAN ONE OF THE US'S LEADING FILM SUBTITLERS DOES THE WHOLE POINT OF SUBTITLES IS TO GET THE FEELING THE SENSE THE EMOTIONS OF THE PICTURE ACROSS IN ENGLISH OR WHATEVER LANGUAGE WITHOUT BEING OBTRUSIVE YOU WANT TO BE NOT NOTICED SHE SAYS MS EISENMAN 65 AND SEMIRETIRED HAS SUBTITLED AND DUBBED OVER 300 DRAMATIC AND DOCUMENTARY FILMS IN HER 30YEAR CAREER MANY FOR SONY PICTURES CLASSICS AND MIRAMAX SHE HAS WORKED ON SUCH OSCAR WINNERS AS BABETTE'S FEAST AND THE OFFICIAL STORY AS WELL AS LAST YEAR'S HIT LIKE WATER FOR CHOCOLATE OF THE NINE FILMS SHE DID LAST YEAR SPAIN'S BELLE EPOQUE IS UP FOR AN OSCAR NEXT MONTH BUT DON'T LOOK FOR HER AT THE ACADEMY AWARDS OR FILM OPENINGS FOR THAT MATTER DESPITE THE SIGNIFICANCE OF A SUBTITLER'S WORK IT IS CREDITED ONLY AND APPROPRIATELY BY A SUBTITLE AT THE END OF A MOVIE'S CREDITS THE LIMITED AUDIENCE OF FOREIGN FILMS EFFECTIVELY LIMITS A SUBTITLER'S RENOWN AS WELL SINCE NONENGLISHBASED FILMS ARE RARELY RELEASED OUTSIDE OF ART HOUSE THEATERS AND THE ARGUMENT OVER WHY THIS IS SO RAGED DURING THE FINAL STAGES OF THE GATT TRADE ACCORD LATE LAST YEAR EUROPEAN FILMMAKERS ASSERTED THAT BECAUSE THEIR FILMS ARE SUBTITLED RATHER THAN DUBBED THEY CANNOT SUCCEED IN WIDE RELEASE IN THE US HOLLYWOOD LOYALISTS COUNTERED THAT THE FILMS THEMSELVES ARE AT FAULT FOR THEIR UNPOPULARITY WHETHER THEY ARE SUBTITLED OR DUBBED WOULD MAKE LITTLE DIFFERENCE IN THEIR APPEAL IN THIS ARGUMENT MS EISENMAN LANDS WITH HER FEET SQUARELY ON THIS SIDE OF THE ATLANTIC DESPITE HER OWN PASSION FOR FOREIGN MOVIES SHE STATES THAT ALTHOUGH DUBBING COULD MAKE A MOVIE MORE WIDESPREAD IN TERMS OF ACCEPTANCE THE SUBJECT HAS TO BE SOMETHING THAT APPEALS TO A WIDER AUDIENCE WHICH IS NOT ALWAYS THE CASE SHE AGREES THAT MOST PEOPLE WHO SEE ARTHOUSE FILMS PREFER SUBTITLED MOVIES TO DUBBED ONES BUT SHE DOES THINK THAT THEY ARE REJECTING DUBBING ON THE BASIS OF EXPERIENCES WITH POOR EXAMPLES DUBBING IS A LOST ART SHE SAYS IT IS SO EXPENSIVE TO DUB A MOVIE WELL YOU HAVE TO HAVE GOOD ACTORS AND WELLWRITTEN DIALOGUE AND YOU HAVE TO GET IN THE STUDIO AND MAKE SURE THE ACTORS CAN SEE WHERE THEIR DIALOGUE HAS TO GO AND THAT IT IS RECORDED PROPERLY IT'S NOT EASY IT TAKES A LONG TIME AND IT'S NOT CHEAP MS EISENMAN POINTS TO HER DUBBED VERSION OF THE OFFICIAL STORY THE 1985 ARGENTINIAN MOVIE THAT WON AN OSCAR FOR BEST FOREIGNLANGUAGE FILM AS AN EXAMPLE OF THE FEW SUCCESSFUL DUBBED MOVIES IN RECENT YEARS LESS SKILLFULLY DUBBED MOVIES IN HER VIEW DO NOT OFFER ANY ADVANTAGES OVER SUBTITLING ONLY GOOD ACTORS WELLDEPLOYED CAN CONVEY NUANCES OF INTONATION AND VERBAL SIGNALS OF COURSE THESE ARE REFINEMENTS THAT EVEN THE BEST SUBTITLER IS HARD PRESSED TO INCLUDE IN A FEW PRINTED WORDS AT THE BOTTOM OF A FRAME BUT THE AUDIENCE STILL GETS SOME OF THIS INFORMATION VISUALLY FROM SEEING THE WAY A CHARACTER LOOKS OR SPEAKS AND WITH SUBTITLES THERE'S NO DISTRACTION FROM BADLY SPOKEN BADLY SYNCHED DUBBED LINES IN A SUBTITLED FILM YOU HAVE THE THING ITSELF WITH THE REAL RHYTHM OF ITS REAL SOUND THE SUBTITLES DECODE THE MEANING OF THAT SOUND AS LITERALLY AS POSSIBLE THAT AT ANY RATE IS MS EISENMAN'S APPROACH NO ARTISTIC LICENSE ASIDE FROM LEAVING OUT BACKGROUND CONVERSATION AND A FEW WORDS IN A LONG QUICKLY DELIVERED SECTION OF DIALOGUE A SUBTITLER SHOULD ALWAYS HEW TO THE ORIGINAL THE LIFE IN THIS IS GETTING AS CLOSE AS POSSIBLE TO THE MEANING OF THE ORIGINAL A LOT OF PEOPLE WILL REMOVE THEMSELVES SO FAR FROM IT THAT THEY LOSE THE TEXTURE OR THEY SIMPLIFY IT FOR THE AMERICAN AUDIENCE I DON'T BELIEVE IN DOING THAT IT MAY SOUND SIMPLE BUT IT HAS TO BE DONE IN THE TINIEST AMOUNT OF TIME AND SPACE MS EISENMAN ESTIMATES THAT A VIEWER CAN READ ONLY ONEANDAHALF WORDS A SECOND AND SHE SAYS THAT MORE THAN ONE LINE OF DIALOGUE ON A SCREEN WILL CONFUSE A VIEWER ALTHOUGH THAT IS COMMON PRACTICE IN EUROPE THE AUDIENCE SHOULD NOT HAVE TO FIGURE OUT THE SUBTITLES IF THEY DO YOU'VE LOST YOUR AUDIENCE THEY SHOULD BE ABLE TO THINK ABOUT WHAT'S BEING SAID FOR MS EISENMAN'S PURPOSES THE IDEAL FILM WOULD HAVE A SINGLE ACTOR ON SCREEN AT ANY GIVEN TIME SPEAKING A FEW WORDS AT A TIME WITH AMPLE PAUSES BETWEEN SENTENCES THAT WAY A LINE OF SUBTITLED DIALOGUE COULD BE ON THE SCREEN DURING THE RELEVANT SHOT BUT FILM REALITY DOES NOT OFFER THE SUBTITLER A TROUBLEFREE LIFE FOR EXAMPLE AN ACTOR OFTEN SPITS OUT A LINE IMMEDIATELY BEFORE THE FILM SWITCHES TO ANOTHER SCENE SHOULD THE SUBTITLER FLASH ALL OF THE DIALOGUE AND RISK CONFUSING THE AUDIENCE OR CONDENSE IT AND RISK LOSING SOME OF THE MEANING MS EISENMAN SPEAKS ENGLISH GERMAN FRENCH ITALIAN PORTUGUESE AND SPANISH BUT SHE DOES NOT NORMALLY TRANSLATE A SCRIPT HERSELF FOR AN AMERICAN PRODUCTION COMPANY TO CONSIDER A FOREIGN FILM FOR RELEASE IN THE US THE SCRIPT MUST ALREADY BE TRANSLATED INTO ENGLISH BECAUSE FEW US PRODUCERS KNOW FOREIGN LANGUAGES WELL ENOUGH TO JUDGE THEM WITHOUT A READYMADE TRANSLATION THEN SHE WORKS WITH THAT CORRECTING WHAT IS OFTEN A SLOPPY TRANSLATION AND COMPLETING THE TECHNICAL PROCESS OF PUTTING THE SUBTITLE ONTO THE FILM ITSELF NOW THAT SHE IS SEMIRETIRED MS EISENMAN USES HER MIDTOWN MANHATTAN OFFICE ONLY FOR THE MACHINES REQUIRED TO PUT THE SUBTITLES ON THE FILM AND DOES THE REST OF THE WORK OUT OF HER CLUTTERED UPPER WEST SIDE APARTMENT WHICH SHE SWEARS SHE DOES NOT HAVE TIME TO VACUUM IN THE SUMMERS IT'S OFF TO LONG ISLAND WITH HER COMPUTER FAX MACHINE FISHING GEAR AND HER ENORMOUS DOG MAX WHO DWARFS HIS OWNER PRACTICALLY DRAGGING HER DOWN THE STREET ON HIS WALKS MY KNEES ARE ALWAYS WOUNDED YOU KNOW HE GOES SO FAST SHE LAUGHS IN A LAUGH MADE RASPY FROM HER NEARCONSTANT SMOKING WHAT RECENT FOREIGN FILMS DOES SHE RECOMMEND MEDITERRANEO AN ACCLAIMED 1992 ITALIAN FILM ABOUT ITALIAN SOLDIERS OCCUPYING A LONELY GREEK ISLAND TOPS HER LIST OF FAVORITE COMEDIES AND SHE HAS RECENTLY FINISHED THE SUBTITLES TO SUD ANOTHER ITALIAN COMEDY ALSO DIRECTED BY GABRIELE SALVATORES BUT AS MUCH AS SHE ENJOYS GOOD COMEDIES IT'S HARD NOT TO NOTICE THAT A GOOD PART OF HER WORK CENTERS ON THE TRAGEDY OF THE HOLOCAUST AND WAR SUCH AS AU REVOIR LES ENFANTS EUROPA EUROPA AND MANY DOCUMENTARIES ON WORLD WAR II THESE MOVIES REALLY STRIKE A CHORD IN ME BECAUSE OF MY PERSONAL EXPERIENCE SHE STATES QUIETLY BORN IN AUSTRIA TO A LONG LINE OF SHOEMAKERS SHE FLED WITH HER JEWISH FAMILY IN THE MID1930S AS THEY MOVED ALL OVER EUROPE FIRST TO ITALY THEN TO FRANCE AND PORTUGAL BEFORE IMMIGRATING TO NEW YORK CITY IN 1940 MS EISENMAN PICKED UP THE MANY LANGUAGES SHE NOW PUTS TO USE PROFESSIONALLY ALL HER GRANDPARENTS WHO REFUSED TO LEAVE AUSTRIA DIED IN CONCENTRATION CAMPS MS EISENMAN SAYS SHE USUALLY TAKES ABOUT A MONTH TO FINISH A FILM SOMETIMES LONGER DURING WHICH TIME SHE SOMETIMES SPENDS DAYS ON A DIFFICULT SENTENCE YOU ARE SO CLOSE TO THEM WHEN YOU'RE WORKING THROUGH THEM WITH GOOD MOVIES YOU CAN JUST FEEL HOW GORGEOUS AND HOW WELLACTED THEY ARE LIKE WATER FOR CHOCOLATE' FOR EXAMPLE YOU COULD JUST FEEL THE MIRACLE AND THE MYSTERY OF THE WHOLE THING AND THEN YOU COULD ENJOY WATCHING IT AND TELL YOURSELF YOU JUST MIGHT DESERVE A BIT OF THE CREDIT MS BRAY WORKS FOR APDOW JONES IN NEW YORK 9402170058 940217 MACY GE CAPITAL ARE SAID TO DISCUSS SIGNIFICANT INVESTMENT IN BIG RETAILER BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO HAS BEGUN NEGOTIATIONS WITH GENERAL ELECTRIC CAPITAL TO EXPLORE THE POSSIBILITY OF A SIGNIFICANT INVESTMENT IN MACY'S REORGANIZATION PLAN ACCORDING TO A PERSON CLOSE TO THE RETAILER GENERAL ELECTRIC CAPITAL THE FINANCIAL SERVICES ARM OF GENERAL ELECTRIC CO IS THE LARGEST SHAREHOLDER OF MACY'S PREFERRED STOCK AND HAS A SEAT ON THE RETAILER'S BOARD MACY IS ATTEMPTING TO FEND OFF FEDERATED DEPARTMENT STORES INC WHICH HAS SAID IT WANTS TO MERGE THE TWO GIANT DEPARTMENT STORE CHAINS FEDERATED IS A MAJOR HOLDER OF MACY SENIOR SECURED DEBT THE INDIVIDUAL FAMILIAR WITH THE SITUATION SAID GENERAL ELECTRIC IS CONSIDERING A PLAN THAT WOULD ENABLE MACY TO PAY OFF FEDERATED'S SENIOR SECURED CLAIM THEREBY DENYING THE CINCINNATIBASED CHAIN A FORMAL SAY IN THE MACY REORGANIZATION PLAN MACY WHICH OPERATES 111 MACY'S AND BULLOCK'S DEPARTMENT STORES HAS BEEN OPERATING UNDER CHAPTER 11 FEDERAL BANKRUPTCY PROTECTION SINCE EARLY 1992 FEDERATED WHICH OPERATES DEPARTMENT STORE DIVISIONS SUCH AS BLOOMINGDALE'S AND RICH'S OWNS MACY SENIOR SECURED DEBT VALUED AT 4493 MILLION AND HAS THE RIGHT TO ACQUIRE A SIMILAR AMOUNT CURRENTLY HELD BY PRUDENTIAL INSURANCE CO OF AMERICA AT CURRENT VALUE IT WOULD COST ABOUT 1 BILLION TO RETIRE THE SENIOR DEBT FACILITY HELD BY FEDERATED AND PRUDENTIAL A MACY SPOKESMAN WOULDN'T COMMENT ABOUT THE POSSIBLE TALKS WITH GENERAL ELECTRIC HE SAID HOWEVER THAT MACY IS LOOKING AT ALL POSSIBLE ALTERNATIVES WE ARE MAKING VERY GOOD PROGRESS IN THE DEVELOPMENT OF A CONSENSUAL PLAN OF REORGANIZATION IN 1991 GENERAL ELECTRIC CAPITAL ACQUIRED MACY'S CREDITCARD BUSINESS FOR AN ESTIMATED 110 MILLION AFTER PAYING DOWN ASSOCIATED DEBT GARY C WENDT CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF GENERAL ELECTRIC CAPITAL BASED IN STAMFORD CONN SITS ON MACY'S BOARD GENERAL ELECTRIC CAPITAL WOULDN'T COMMENT BEYOND A PREPARED STATEMENT FROM MR WENDT WE CONTINUE TO SUPPORT MACY'S MANAGEMENT IN ITS EFFORT TO FIND A VIABLE INDEPENDENT SOLUTION THAT PROVIDES THE MAXIMUM BENEFIT TO ALL MR WENDT SAID WALL STREET ANALYSTS ESTIMATE THAT MACY IS CURRENTLY WORTH ABOUT 35 BILLION BASED GENERALLY ON PROJECTIONS OF MACY FUTURE CASH FLOW AND POTENTIAL SALE VALUE WHILE THE EXACT SIZE OF ANY CASH INFUSION IS UNCLEAR ACCORDING TO THOSE FAMILIAR WITH THE TALKS THE USE OF NEW CAPITAL IN A CONSENSUAL REORGANIZATION PLAN WOULD HAVE TO GET THE APPROVAL OF MOST IF NOT ALL OF MACY'S EIGHT CREDITOR GROUPS SEPARATELY THE MACY SPOKESMAN SAID MYRON E ULLMAN III THE RETAILER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL VISIT HONG KONG AND OTHER POINTS IN ASIA NEXT MONTH APPARENTLY IN SEARCH OF OTHER INVESTORS MR ULLMAN IS EXPECTED TO MEET WITH PETER WOO CHAIRMAN OF WHEELOCK & CO A LARGE HONG KONG CONGLOMERATE THERE HAS BEEN SPECULATION THAT MR WOO MAY EMERGE AS AN INVESTOR IN A REORGANIZED MACY MR ULLMAN HAS CLOSE TIES TO MR WOO A FORMER ROOMMATE AT THE UNIVERSITY OF CINCINNATI IN THE 1980S MR ULLMAN WORKED AS A MANAGING DIRECTOR OF WHARF HOLDINGS LTD A TRANSPORTATION REALESTATE AND RETAIL COMPANY IN WHICH WHEELOCK OWNS A 44 INTEREST AMONG WHEELOCK'S OTHER HOLDINGS IS A 67 STAKE IN LANE CRAWFORD LTD A LARGE DEPARTMENT STORE CHAIN PRESSURE IS MOUNTING ON MACY TO SPEED ITS EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROTECTION ON TUESDAY AND YESTERDAY FEDERATED HELD A SERIES OF CLOSEDDOOR MEETINGS WITH MACY'S SECURED AND UNSECURED CREDITORS TO REVIEW FEDERATED'S FINANCIAL CONDITION TO ANSWER QUESTIONS ABOUT ITS MACY DEBT HOLDINGS AND TO OUTLINE IN GENERAL TERMS WHY IT WANTS TO MERGE WITH MACY IN ADDITION TEXAS HAS FILED A COMPLAINT IN US BANKRUPTCY COURT IN NEW YORK OBJECTING TO MACY'S MOTION TO EXTEND ITS EXCLUSIVE RIGHTS TO FILE A REORGANIZATION PLAN MACY WILL APPEAR ON TUESDAY BEFORE JUDGE BURTON LIFLAND TO HAVE THE EXCLUSIVITY PERIOD EXTENDED FROM ITS SCHEDULED TERMINATION DATE OF MARCH 15 TO SEPT 15 TEXAS IS OWED A SIGNIFICANT AMOUNT OF BACK SALESTAX DOLLARS EARLIER THIS WEEK IN AN AMENDMENT TO THE TEXAS COMPLAINT NEW YORK STATE'S TAX DEPARTMENT JOINED THE PETITION AND DISCLOSED IT IS OWED 55 MILLION IN BACK TAXES BY MACY A SPOKESMAN FOR MACY EXPLAINED THAT WHEN THE RETAILER FILED FOR CHAPTER 11 PROTECTION IN JANUARY 1992 ALL THE SALES TAXES COLLECTED DURING THE PREVIOUS QUARTER WERE FROZEN TEXAS IN ITS COMPLAINT ESTIMATED MACY OWES VARIOUS STATES 330 MILLION IN BACK TAXES MACY EXECUTIVES NOTED YESTERDAY THAT TEXAS ALONE HAS CLAIMED IT IS OWED ABOUT 500000 IN UNPAID SALES TAXES FROZEN AT THE TIME OF THE BANKRUPTCY FILING 9402170057 940217 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE COMPUTER INDUSTRY IS DOING IT TO US AGAIN JUST AS THE HARDWARE MAKERS HAVE STARTED SELLING FAIRLY POWERFUL PERSONAL COMPUTERS AT PRICES THAT PUT THEM IN REACH OF MANY MORE FAMILIES AND SMALL BUSINESSES THE SOFTWARE PUBLISHERS HAVE BEGUN TO REQUIRE MORE MEMORY FOR NEW PROGRAMS THAN THOSE POPULAR COMPUTERS TYPICALLY OFFER AVERAGE CONSUMERS ARE BEING CAUGHT IN THE MIDDLE MANY PEOPLE BUYING HEAVILY ADVERTISED HIGHPOWERED MASSMARKET MACHINES FROM LEADING COMPANIES LIKE COMPAQ IBM APPLE AND DELL ARE GOING TO WIND UP MIGHTY FRUSTRATED WHEN THEY TRY TO USE THE LATEST VERSIONS OF SOME POPULAR BUSINESS SOFTWARE FROM THE LIKES OF MICROSOFT BORLAND AND WORDPERFECT OR EVEN MANY ELABORATE GAMES AND MULTIMEDIA OFFERINGS THEY'LL FIND SOME OF IT RUNS SLOWLY AND POORLY IN THE FOUR MEGABYTES OF MEMORY COMMONLY INSTALLED ON POPULAR PCS THAT SELL FOR UNDER 2000 AND THE MISMATCH IS LIKELY TO SPREAD TO MORE AND MORE PROGRAMS THE HARDWARE COMPANIES CAUGHT IN A PRICE WAR ARE RELUCTANT TO BOOST THE COST OF THEIR MACHINES BY UPPING THE STANDARD MEMORY CAPACITY THE SOFTWARE COMPANIES RACING TO CRAM SCORES OF OFTEN MARGINAL FEATURES INTO THEIR PROGRAMS CONVENIENTLY OVERLOOK TODAY'S TYPICAL CONFIGURATION WHAT'S MORE PEOPLE IN BOTH SIDES OF THE INDUSTRY LIVE IN A SORT OF DREAM WORLD THEY TOO OFTEN WORK ON MACHINES WITH TWO THREE OR FOUR TIMES THE USUAL MEMORY THEY RELY TOO MUCH ON FEEDBACK FROM CUSTOMERS IN BIG BUSINESS WHO EQUIP THEIR OWN MACHINES AS LAVISHLY AND MANY FALSELY ASSUME THAT AVERAGE PEOPLE WILL FIND IT JUST AS TRIVIAL AS THEY DO IN MONEY TIME AND SKILL TO POP OPEN THEIR MACHINES AND ADD MORE MEMORY AS A RESULT SMALLBUSINESS AND INDIVIDUAL OWNERS SOON WILL FIND THEMSELVES EITHER SETTLING FOR LESS CAPABLE SOFTWARE LIKE THE BASIC ALLINONE PROGRAMS OFTEN BUNDLED WITH THEIR MACHINES OR SHELLING OUT A COUPLE OF HUNDRED DOLLARS FOR MEMORY CHIPS AND TRYING TO INSTALL THEM IT'S HAPPENED BEFORE EVERY FEW YEARS IN FACT BUT THAT'S NO EXCUSE FOR SELLING CUSTOMERS PRODUCTS THAT WORK BADLY TOGETHER HERE'S A BRIEF EXPLANATION OF WHAT'S INVOLVED IN THIS MEMORY MESS AND A LITTLE ADVICE ON WHAT TO DO WHEN I REFER HERE TO MEMORY I'M NOT TALKING ABOUT THE COMPUTER'S LONGTERM STORAGE CAPACITY WHICH IS THE SIZE OF THE HARDDISK DRIVE INSIDE THOUGH THAT ASPECT OF THE HARDWARE ALSO IS UNDER PRESSURE FROM FATTER AND FATTER SOFTWARE INSTEAD THE REAL CRISIS FOR AVERAGE BUYERS LIES IN THE MACHINE'S SHORTTERM CAPACITY THE TOTAL SIZE OF THE PROGRAMS AND DATA FILES IT CAN WORK ON AT ANY ONE MOMENT THIS IS WHAT THE INDUSTRY MEANS BY MEMORY OR RAM FOR RANDOM ACCESS MEMORY AS OPPOSED TO DISK STORAGE THE SIZE OF MEMORY IS GOVERNED BY HOW MANY AND WHAT TYPE OF MEMORY CHIPS A COMPUTER HOLDS MOST MAINSTREAM MACHINES BEING SOLD IN LARGE COMPUTER ELECTRONICS AND OFFICEPRODUCTS STORES COME WITH FOUR MEGABYTES OF SUCH MEMORY OR ENOUGH TO HOLD ABOUT FOUR MILLION CHARACTERS OF TEXT AT ONCE THE BEST WAY TO COPE WITH THE MEMORY SQUEEZE IS TO BUY MORE MEMORY IN THE FIRST PLACE FOR A COUPLE OF YEARS I'VE ADVISED READERS TO GET FOUR MEGABYTES WITH NEW COMPUTERS AND MORE IF THEY CAN AFFORD IT I NOW MUST RELUCTANTLY BOOST THAT RECOMMENDATION IF YOU EXPECT TO USE YOUR COMPUTER WITH THE MOST CAPABLE BUSINESS AND ENTERTAINMENT SOFTWARE YOU SHOULD PICK A COMPUTER WITH AT LEAST EIGHT MEGABYTES OF MEMORY THIS IS ESPECIALLY CRUCIAL IF YOU'RE BUYING A MULTIMEDIA MACHINE AN EXTRA FOUR MEGABYTES SHOULD ADD 200 OR LESS TO A MACHINE'S PRICE AS BEFORE IF YOU CAN AFFORD EVEN MORE GET IT YOU CAN NEVER HAVE TOO MUCH WHAT IF YOU OWN A FOURMEGABYTE MACHINE FIRST YOU CAN JUST STICK WITH THE ALLINONE PACKAGES THAT SHIP WITH MANY MACHINES SUCH AS MICROSOFT WORKS OR CLARISWORKS THESE TAKE FAR LESS MEMORY THAN HIGHLY TOUTED STANDALONE WORD PROCESSORS SPREADSHEETS AND ART PROGRAMS BUT THEY ARE PROBABLY GOOD ENOUGH FOR MOST PEOPLE SECOND YOU CAN FAVOR THOSE MAJOR PROGRAMS THAT RUN WELL ON FOURMEGABYTE MACHINES IF YOU'RE RUNNING WINDOWS WITH FOUR MEGABYTES PASS UP THE LATEST WINDOWS VERSION OF WORDPERFECT IN FAVOR OF MICROSOFT WORD OR LOTUS'S AMI PRO WORD PROCESSOR AVOID BORLAND'S QUATTRO PRO FOR WINDOWS SPREADSHEET AND SKIP MICROSOFT'S EXCEL AS WELL EXCEPT FOR LIGHTDUTY SPREADSHEET WORK FOR WRITING ON A MACINTOSH YOU CAN CHOOSE WRITENOW FROM WORDSTAR OR CLARIS'S MACWRITE PRO THIRD DON'T BELIEVE THE MEMORY REQUIREMENTS LISTED ON BOXES OF SOFTWARE THEY OFTEN ARE UNDERSTATED SO ASSUME IT'LL TAKE A MEGABYTE OR TWO MORE TO RUN THE PROGRAM OPTIMALLY FINALLY YOU CAN ADD MEMORY CHIPS WHICH COME EMBEDDED ON PLASTIC STICKS CALLED SIMMS AND POP INTO SPECIAL LITTLE SLOTS IN YOUR COMPUTER AT ABOUT 50 A MEGABYTE THEY ARE PRETTY CHEAP BUT THEY CAN BE TRICKY TO INSTALL BECAUSE DIFFERENT COMPUTER MODELS EVEN FROM THE SAME MAKER ACCEPT EXTRA MEMORY IN DIFFERENT COMBINATIONS AND STEPS SOME MAY NOT PERMIT YOU TO ADD SMALL INCREMENTS LIKE ONE OR TWO MEGABYTES OR EVEN FORCE YOU TO PULL OUT AND WASTE THE MEMORY CHIPS YOU HAVE BEFORE ADDING LARGER ONES IN MY VIEW THIS IS JUST ANOTHER CASE OF THE COMPUTER INDUSTRY OVERPROMISING AND MAKING THINGS HARDER THAN NECESSARY FOR NONTECHNICAL USERS IT'S TIME FOR EITHER LEANER SOFTWARE OR A CHANGE IN THE STANDARD UNDER2000 MACHINE SO IT OFFERS MORE MEMORY SOMETHING'S GOT TO GIVE 9402170056 940217 BUSINESS BRIEF ENERGY VENTURES INC NATIONAL IRANIAN OIL CONTRACT FOR DRILLING IS TERMINATED ENERGY VENTURES INC SAID ITS LAND DRILLING CONTRACT WITH THE NATIONAL IRANIAN OIL CO HAS BEEN TERMINATED BECAUSE OF ORGANIZATIONAL AND FINANCIAL DIFFICULTIES EXPERIENCED BY THE CUSTOMER ENERGY VENTURES A HOUSTON OILFIELD SERVICE AND EQUIPMENT COMPANY SAID IT IS IN TALKS WITH ITS POLITICALRISK INSURER AND WITH IRANIAN OIL ABOUT PAYMENTS DUE FOR WORK PERFORMED ENERGY VENTURES SAID IT EXPECTS TO RECOVER THE 11 MILLION OF ASSETS AND RECEIVABLES IT HAS IN IRAN SEPARATELY ENERGY VENTURES SAID IT HAS ACQUIRED CLOSELY HELD AWI DRILLING & WORKOVER INC AN OILFIELD SERVICES COMPANY BASED IN BELLE CHASSE LA FOR 65 MILLION AND 430000 COMMON SHARES 9402170054 940217 BUSINESS BRIEF AUSPEX SYSTEMS INC IBM WILL NO LONGER FUND ENHANCEMENTS FOR COMPUTER AUSPEX SYSTEMS INC SAID INTERNATIONAL BUSINESS MACHINES CORP WILL NO LONGER FUND FURTHER ENHANCEMENTS TO A COMPUTER DESIGNED BY AUSPEX FOR IBM IN A LETTER TO THE SANTA CLARA CALIF COMPANY IBM CITED THE CURRENT BUSINESS ENVIRONMENT AND INVESTMENT FACTORS IN ITS DECISION AUSPEX SAID IBM PLANS TO KEEP SELLING THE MACHINE BUT DID NOT SAY FOR HOW LONG AUSPEX SAID IT DID NOT EXPECT A MAJOR FINANCIAL IMPACT FROM IBM'S DECISION SINCE THE COMPUTER CALLED THE RS7051 FILESERVER HAS NOT SOLD WELL AND CONSEQUENTLY HAS NOT BROUGHT IN SIGNIFICANT ROYALTY REVENUE TO AUSPEX SEPARATELY AUSPEX NAMED LAURENCE BOUCHER THE COMPANY'S CHIEF EXECUTIVE OFFICER TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS JIM PATTERSON WHO RETIRED AT THE BEGINNING OF THIS YEAR AUSPEX ALSO SAID IT PLANS TO BEGIN A STOCK REPURCHASE PROGRAM TO BUY AS MANY AS 600000 SHARES OF STOCK IN THE OPEN MARKET MR BOUCHER SAID THE MOVE WAS MADE IN VIEW OF THE RECENT LOW PRICE OF THE COMPANY'S STOCK AUSPEX SHARES WERE UNCHANGED YESTERDAY AT 850 IN NASDAQ STOCK MARKET TRADING THE STOCK'S 52WEEK HIGH WAS 1550 9402170053 940217 CREDIT RATINGS CRANE CO STAMFORD CONN MOODY'S INVESTORS SERVICE INC PUT THE DEBT RATINGS OF CRANE UNDER REVIEW FOR POSSIBLE DOWNGRADE AFFECTING ABOUT 100 MILLION OF DEBT MOODY'S SAID IT INITIATED THE REVIEW BECAUSE OF CRANE'S MORE AGGRESSIVE ACQUISITION PROFILE CRANE'S SENIOR UNSECURED DEBT IS NOW RATED BAA1 AND SUBORDINATED DEBT IS RATED BAA2 CRANE MAKES PRODUCTS FOR COMMERCIAL AND INDUSTRIAL MARKETS SPRINT CORP WESTWOOD KAN STANDARD & POOR'S CORP RAISED THE SENIOR UNSECURED DEBT RATINGS OF THIS TELECOMMUNICATIONS COMPANY AND ITS CENTEL CAPITAL CORP UNIT AFFECTING ABOUT 12 BILLION OF DEBT S&P RAISED RATINGS TO TRIPLEB FROM TRIPLEBMINUS NOTING THE STRENGTHENING FINANCIAL PERFORMANCE OF SPRINT'S LONGDISTANCE TELEPHONE OPERATIONS IT SAID LOCAL TELEPHONE UNITS CONTINUE TO PROVIDE STRONG EARNINGS AND CASHFLOW SUPPORT FOR DEBT WHILE CELLULAR OPERATIONS ARE MOVING RAPIDLY TOWARD SUSTAINABLE OPERATING PROFITABILITY CONSOLIDATED DEBT LEVERAGE IS EXPECTED TO DECLINE TO BETWEEN 50 AND 55 OVER THE NEXT TWO YEARS FROM ABOUT 60 AT THE END OF 1993 S&P SAID 9402170052 940217 BUSINESS BRIEFS PRICE COMMUNICATIONS CORP SIGNED AN AGREEMENT TO ACQUIRE SMITH ACQUISITION CORP WHICH OWNS WHTMTV IN PENNSYLVANIA FOR 40 MILLION TO 41 MILLION TURNER CORP'S TURNER CONSTRUCTION CO UNIT WILL SERVE AS GENERAL CONTRACTOR FOR A 90 MILLION FEDERAL COURTHOUSE AND OFFICE BUILDING IN MINNEAPOLIS BUTLER MANUFACTURING CO RECEIVED A 17 MILLION CONTRACT FROM THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE AVIALL INC'S AVIALL DALLAS ENGINE SERVICES SIGNED TWO THREEYEAR AGREEMENTS TO REPAIR AND OVERHAUL AIRPLANE ENGINES FOR SOUTHWEST AIRLINES DALLAS TERMS WEREN'T DISCLOSED CACI INTERNATIONAL INC RECEIVED A CONTRACT VALUED AT AN ESTIMATED 30 MILLION TO PROVIDE LOGISTICS AND CONFIGURATION DATAMANAGEMENT SERVICES TO THE MILITARY SEALIFT COMMAND 9402170051 940217 BUSINESS BRIEF CHAMPION ENTERPRISES INC MANUFACTUREDHOUSING FIRM TO POST HIGHER 1993 PROFIT CHAMPION ENTERPRISES INC WILL REPORT NET INCOME OF 152 TO 154 A SHARE WHEN IT REPORTS ITS 1993 RESULTS IN TWO WEEKS CHAIRMAN WALTER R YOUNG JR SAID IN 1992 THE AUBURN HILLS MICH COMPANY HAD NET INCOME OF 40 CENTS A SHARE EXCLUDING A 37CENTSASHARE LOSS ON THE SALE OF ITS UNPROFITABLE RECREATIONAL VEHICLE OPERATION CHAMPION'S INCOME FROM CONTINUING OPERATIONS WAS 77 CENTS A SHARE MR YOUNG IN AN INTERVIEW SAID 1993 SALES ROSE 26 TO 3419 MILLION FROM 2706 MILLION ABOUT 90 OF CHAMPION'S REVENUE COMES FROM SALES OF MANUFACTURED HOUSES OR MOBILE HOMES THE REMAINING 10 IS FROM SALES OF MIDSIZE BUSES MR YOUNG SAID OPERATING PROFIT MARGINS FOR CHAMPION'S HOUSING BUSINESS CLIMBED TO 52 IN 1993 FROM 43 IN 1992 HE PROJECTS OPERATING PROFIT MARGINS FOR THE HOUSING BUSINESS WILL REACH 55 THIS YEAR AND CHAMPION'S SALES SHOULD INCREASE AT LEAST 10 IN THE MANUFACTUREDHOUSING SEGMENT MR YOUNG PREDICTED 9402170050 940217 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO WINTER STORMS SHARPEN BUSINESSES' DISCOUNT STRATEGIES PITTSBURGH'S DINGBATS RESTAURANT PLANS BEER PROMOS AND DEALS TO RECOUP SALES LOST TO THE FOUL WEATHER CHIAM IN NEW YORK COUNTS ON SPECIALS SUCH AS A PRIXFIXE PRESIDENTS DAY MEAL WHILE SOME RETAILERS LIKE ANNTAYLOR HOLD IMPROMPTU SALES TO BOOST TRAFFIC EXPECT DEEPER MARKDOWNS IN THE SHORT TERM SAYS NEW YORK CONSULTANT ALAN G MILLSTEIN YOU'LL SEE EXTRAORDINARY SALES THIS PRESIDENTS DAY WEEKEND HE ADDS BUT ECONOMIST DONALD RATAJCZAK OF GEORGIA STATE UNIVERSITY DOUBTS BUSINESSES CAN DO MUCH CATCHING UP THIS QUARTER BECAUSE BAD WEATHER IS LASTING A BIT LONGER THAN EXPECTED THE STORMS AND THE CALIFORNIA QUAKE HAVE CUT HIS ESTIMATE FOR FIRSTQUARTER GROSS DOMESTIC PRODUCT GROWTH TO 15 TO 25 FROM 35 TO 45 RESTAURANTS ARE AMONG THE HARDEST HIT RICK VAN WARNER OF NATION'S RESTAURANT NEWS PREDICTS MORE FAILED RESTAURANTS THAN USUAL THIS YEAR BUSINESS MEANWHILE ROSE 25 AT THE FOUR NEW YORK JOSEPH CIONE HAIR SALONS LOCATED IN OFFICE COMPLEXES AS STRANDED WORKERS OPTED FOR MANICURES AND CUTS PC KARAOKE DISK PRODUCTS BRING SINGALONGS FROM BARS TO HOME OFFICES THE POPULAR PASTIME OF KARAOKE TAKES ON A CYBERTINGE WITH SOME SINGALONG PRODUCTS ON COMPUTER DISKS KAP'N KARAOKE DUE IN APRIL FROM UTAH'S WORDPERFECT CORP WILL COME WITH A MIKE TO HOOK INTO A COMPUTER THE COMPUTER PLAYS INSTRUMENTALS OF SONGS LIKE TWINKLE TWINKLE LITTLE STAR AS WORDS ARE LIT UP IN TIME TO THE MUSIC SIRIUS PUBLISHING IN ARIZONA TOUTS A SIMILAR ELVIS THE KING CDROM DISK MEANWHILE VOYAGER CO'S CDROM DISK OF MACBETH OFFERS THEATER KARAOKE USERS CHOOSE A ROLE AND READ FROM LINES ONSCREEN WHILE THE SCENES ARE ACTED OUT RON WHITE CONTRIBUTOR TO PC COMPUTING MAGAZINE SAYS SOFTWARE FIRMS ARE GUESSING AT USES FOR COMPUTERS WITH VIDEO AND SOUND CAPABILITIES WILL KARAOKE FIT THE BILL THERE MAY BE A LOT OF CLOSET KARAOKE SINGERS WILLING TO BELT OUT A TUNE IN THE PRIVACY OF THEIR BASEMENT HE SAYS A HAPPY MEDIUM NEW PACKAGE SIZES GAIN CLOUT FOLLOWING THE JUMBOS' SUCCESS WAREHOUSE CLUBS AND OTHER OUTLETS SELLING GIANTSIZED GOODS AND BULK ITEMS HAVE TRAINED SHOPPERS TO CONNOTE VALUE WITH SIZE PACKAGING MAGAZINE SAYS A PROBABLE OFFSHOOT OF THAT TACTIC IS THE CREATION OF MORE INTERMEDIATE SIZES BIGGER THAN STANDARD SUPERMARKET ITEMS BUT SMALLER THAN WAREHOUSE SIZE HJ HEINZ'S OREIDA FOODS UNIT CREATES A FLEXIBLE OPTION WITH ITS SADDLEBAG OF FROZEN TATER TOTS THAT SIMPLY LINKS TWO FOURPOUND POUCHES SOME CONSUMERS DO NOT WANT OR HAVE ROOM FOR 24 ROLLS OF PAPER TOWELS NOTES MONA DOYLE OF CONSUMER NETWORK IN PHILADELPHIA WAREHOUSESIZE HAS PROVED TO BE EXTREME FOR MANY PEOPLE SHE SAYS STILL SUCH SHOPPERS MAY FIND FOUR PAPERTOWEL ROLLS TO BE A BARGAIN IN A GROCERY STORE WHERE MANY TOWELS ARE SOLD IN TWOPACKS DITTO FOR 12PACKS OF SODA OR BEER OVER SIXPACKS VALUE IS IN THE EYE OF THE BEHOLDER SAYS MS DOYLE DIFFERING SIZES ARE ONE FORM OF NICHENICHE MARKETING SAYS DESIGN NORTH INC IN RACINE WIS HAVE GLOVES WILL TRAVEL ON THE SHUTTLE SAYS DELTA AIR LINES ROUNDTRIP PASSENGERS OVER THE PRESIDENTS DAY WEEKEND CAN BRING A COMPANION ON DELTA'S NEW YORK BOSTON AND WASHINGTON SHUTTLES IN EXCHANGE FOR MITTENS SCARVES AND HATS WHICH WILL BE GIVEN TO CHARITIES IN THOSE CITIES DENMARK'S THE BEST PLACE IN EUROPE FOR COMPANIES TO BE OWED MONEY A GRANT THORNTON SURVEY SAYS SMALL AND MIDSIZE FIRMS THERE WAIT AN AVERAGE 36 DAYS FOR PAYMENT ON INVOICES THE WORST PLACES SPAIN AND ITALY WHERE COMPANIES WAIT 80 DAYS AND 90 DAYS RESPECTIVELY HUMILITY IN ADVERTISING THE METS ARE GOING NOWHERE BUT UP DECLARES A POLLYANNATONED MAILING TO SEASON TICKET HOLDERS BY THE NEW YORK METS BASEBALL TEAM WHICH FINISHED AT THE BOTTOM OF ITS LEAGUE LAST YEAR THE AVAILABILITY OF QUALITY SEATING IS BETTER THAN IT HAS BEEN IN MANY YEARS THE CLUB ASSURES CUSTOMERS SECURITY FIRMS DRAFT INDUSTRY STANDARDS TO QUELL FALSE BURGLAR ALARMS SECURITYDEVICE MAKERS ARE CLOSE TO COMPLETING THEIR FIRST STANDARDS AIMED AT CURBING THE NUMBER OF FALSE ALERTS WHICH ARE ON THE RISE THE POLICE RESPOND TO ABOUT 14 MILLION ALARMS A YEAR 95 TO 98 OF WHICH ARE FALSE SAYS MICHAEL SHANAHAN OF THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE IN SOME COMMUNITIES IN CANADA THE POLICE NO LONGER RESPOND AFTER A CERTAIN NUMBER OF FALSE ALARMS FROM A PARTICULAR LOCATION HOUSTON PLANS TO IMPLEMENT A SIMILAR POLICY IN JUNE THE NEW STANDARDS DRAFTED BY THE SECURITY INDUSTRY ASSOCIATION WASHINGTON RECOMMEND IMPROVED CONTROL PANELS ACOUSTIC DETECTORS AND MOTION DETECTORS SOME SPECIFY DESIGNS AIMED AT MAKING IT EASIER TO VERIFY ALARMS OR ABORT FALSE ONES OTHERS DETAIL INSTALLATION PROCEDURES BUT THESE STANDARDS ARE ONLY A PARTIAL SOLUTION MR SHANAHAN SAYS YOU'LL STILL HAVE A HUGE CLIENTELE WITH OLD EQUIPMENT THE BURGLARALARM BUSINESS TOTALED NEARLY 6 BILLION IN 1993 SAYS STAT RESOURCES INC BROOKLINE MASS BRIEFS PINE VALLEY GOLF CLUB IN CLEMENTON NJ BANS SMOKING ON THE COURSE TO CURB LITTER AND PREVENT BRUSH FIRES HARMON'S GRAIN PRODUCTS INC MCCOOK NEB OFFERS RUMINANT DUFFERS MINTFLAVORED GOLF TEES IN PLACE OF TOOTHPICKS 9402170049 940217 MARKETING & MEDIA MARKETSCAN HEALTHY FARE FINDS ROOM TO GROW BY KATHLEEN DEVENY AMERICANS MAY BE GROWING WEARY OF HEALTHFUL EATING BUT THEY HAVEN'T GIVEN UP ENTIRELY MANY OF THE FASTESTGROWING PRODUCTS IN SUPERMARKETS TODAY REFLECT CONSUMERS' CONTINUING APPETITE FOR WHOLESOME FARE AS LONG AS IT IS CONVENIENT SALES OF PREPARED SALAD FIXINGS FOR INSTANCE GREW 1113 DURING THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SIMILARLY SALES OF FRESH BAGELS A LOWERFAT ALTERNATIVE TO MUFFINS AND CROISSANTS INCREASED 411 AND DRIVEN LARGELY BY KELLOGG CO'S EARTHY NUTRIGRAIN CEREAL BARS SALES OF GRANOLA AND OTHER SNACK BARS GREW 199 SALES OF INDIVIDUAL VITAMINS SUCH AS BETA CAROTENE AND VITAMIN C INCREASED 193 AFTER STUDIES IN MEDICAL JOURNALS LINKED THE NUTRITIONAL SUPPLEMENTS TO LOWER RATES OF CANCER AND OTHER DISEASES AND AFTER SLIMMING DOWN FOR MOST OF 1992 SALES OF SUCH LIQUID DIET MEALS AS SLIMFAST FOOD CO'S ULTRA SLIMFAST WERE ALSO ROBUST NOT ALL CONSUMERS WERE IMMUNE TO TEMPTATION THOUGH ESPECIALLY DURING THE HOLIDAY SEASON AFTER WEAK RESULTS EARLY IN THE YEAR SALES OF REFRIGERATED COOKIE DOUGH GREW 269 MARKET LEADER PILLSBURY CO A UNIT OF GRAND METROPOLITAN PLC ATTRIBUTES THAT GROWTH LARGELY TO STEPPEDUP PROMOTIONS FOR ITS PILLSBURY'S BEST COOKIE DOUGH TO ENCOURAGE WOULDBE BAKERS WITHOUT THE NECESSARY TIME OR SKILLS THE COMPANY RAN A SERIES OF ADS OFFERING TIPS FOR USING ITS DOUGH TO MAKE HOLIDAY COOKIES NEW PRODUCT ACTIVITY WAS PRIMARILY RESPONSIBLE FOR THE STRONG SHOWING OF SOME CATEGORIES SUCH AS ICEDTEA DRINKS AND DRAIN CLEANERS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF THE FASTESTGROWING PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS EACH QUARTER INFORMATION RESOURCES RANKS MORE THAN 323 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE GROWTH COMPARED WITH THE YEAREARLIER PERIOD 9402170048 940217 TECHNOLOGY BRIEF IMUTEC CORP PANCREATICCANCER TREATMENT TO BEGIN FINAL CLINICAL TRIAL IMUTEC CORP SAID IT HAS RECEIVED CLEARANCE FROM CANADIAN REGULATORS TO BEGIN A PHASE III CLINICAL TRIAL OF VIRULIZIN IN TREATMENT OF PATIENTS WITH PANCREATIC CANCER THE TORONTO PHARMACEUTICAL CONCERN SAID THE PLACEBOCONTROLLED DOUBLEBLIND TRIAL WILL STUDY WHETHER THE TREATMENT CAN PROLONG THE SURVIVAL TIME OF PATIENTS WITH ADVANCED PANCREATIC CANCER THE TRIAL WILL BE CONDUCTED IN CANCER CLINICS ACROSS CANADA AND WILL INVOLVE ABOUT 300 PATIENTS IMUTEC SAID TESTS OF THE TREATMENT TO DATE SHOW A MEDIAN SURVIVAL TIME OF EIGHT MONTHS LONGER THAN THE NORMAL SURVIVAL TIME OF 3 1/2 MONTHS AND PATIENTS APPEAR TO HAVE A BETTER QUALITY OF LIFE THE PHASE III TRIAL IS THE FINAL PHASE BEFORE THE TREATMENT CAN BE APPROVED BY REGULATORS AND PRESCRIBED AS A CANCER THERAPY 9402170047 940217 GEOTEK CHANGES COMPANY NAME MONTVALE NJ GEOTEK INDUSTRIES INC SHAREHOLDERS APPROVED A CHANGE IN THE COMPANY'S NAME TO GEOTEK COMMUNICATIONS INC AND AN INCREASE IN AUTHORIZED COMMON SHARES TO FACILITATE AN INVESTMENT IN THE COMPANY BY VANGUARD CELLULAR SYSTEMS INC THE WIRELESSCOMMUNICATIONS CONCERN SAID IT WILL ISSUE AS MANY AS 14 MILLION SHARES OF COMMON STOCK TO VANGUARD A GREENSBORO NC OPERATOR OF CELLULARTELEPHONE SYSTEMS VANGUARD LATE LAST YEAR ANNOUNCED AN INITIAL INVESTMENT OF 30 MILLION AND ALSO ACQUIRED OPTIONS TO INVEST AN ADDITIONAL 167 MILLION OVER THE NEXT THREE YEARS IF VANGUARD EXERCISED ALL ITS RIGHTS IT WOULD OWN 20 OF GEOTEK ON A DILUTED BASIS 9402170046 940217 JAPAN ACCUSES US OF BREAKING PLEDGE ON TARIFF NEGOTIATOR AT GATT TALKS CITES BETRAYAL OF TRUST' THREATENS TO RETALIATE BY WALL STREET JOURNAL REPORTERS BHUSHAN BAHREE IN GENEVA BOB DAVIS IN WASHINGTON AND DAVID P HAMILTON IN TOKYO USJAPANESE TRADE RELATIONS SPIRALED FURTHER DOWNWARD AS A JAPANESE NEGOTIATOR IN GENEVA ACCUSED THE US OF BAD FAITH AND A BETRAYAL OF TRUST THE LATEST FIGHT INVOLVES NEGOTIATIONS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE WORLD TRADE FORUM IN GENEVA THE GATT FIGHT COMES A DAY AFTER THE US OPENED ITS TRADE OFFENSIVE AGAINST JAPAN THREATENING TO LEVY SANCTIONS ON SEVERAL HUNDRED MILLION DOLLARS OF JAPANESE IMPORTS BECAUSE OF A DISPUTE OVER CELLULAR TELEPHONES THE US WANTS TO TURN UP THE PRESSURE ON JAPAN TO GET IT TO MAKE CONCESSIONS IN THE SOCALLED FRAMEWORK TRADE TALKS BETWEEN THE TWO COUNTRIES WHICH COLLAPSED LAST WEEK THE JAPANESE ACCUSATIONS AT THE GATT FORUM WHICH WERE ACCOMPANIED BY THREATS OF RETALIATION REPRESENT A SIGNIFICANT ESCALATION OF THE JAPANESE RESPONSE WHICH SO FAR HAS ESCHEWED MAKING SUCH THREATS AT THE GATT FORUM THE US AND JAPAN ENDED SEVERAL DAYS OF TALKS AIMED AT ENLARGING TARIFF CUTS THAT WERE AGREED TO IN DECEMBER DESPITE INTENSE US CANADIAN AND EUROPEAN PRESSURE JAPAN SAID IT WOULDN'T CUT ANY FURTHER ITS TARIFFS ON WOOD PRODUCTS COPPER AND WHITE ALCOHOLIC BEVERAGES NOBUTOSHI AKAO JAPAN'S CHIEF NEGOTIATOR FOR THE GATT TALKS SAID HIS COUNTRY HAD OFFERED ITS LAST TARIFF CUTS IN DECEMBER AND WOULDN'T MAKE ANY MORE IN RETALIATION HE CHARGED YESTERDAY THE US IS GOING BACK ON ITS PLEDGE TO LOWER TARIFFS ON ELECTRONICS AND SOME OTHER GOODS IF THAT OCCURS HE ADDED JAPAN MAY RETALIATE BY NARROWLY TARGETING US EXPORTS OF SUCH GOODS AS COMPUTER COMPONENTS IF THE UNITED STATES BREAKS A RULE WE HAVE TO BREAK A RULE MR AKAO SAID HIS VOICE RISING EVER SO SLIGHTLY WE EXCHANGED FINAL OFFERS AND WHAT WAS ON THE TABLE ON DEC 15 WAS FINAL HE ASSERTED JOHN SCHMIDT MR AKAO'S US COUNTERPART SAID THE OFFERS MADE BY THE US HAD BEEN CONDITIONAL ON JAPAN'S AGREEING TO REDUCE DUTIES FURTHER ON WOOD AND WOOD PRODUCTS WHITE SPIRITS SUCH AS VODKA AND GIN NONFERROUS METALS AND LEATHER FOOTWEAR WE ARE GOING TO CONTINUE PRESSING THEM ON THIS MR SCHMIDT SAID IN WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US HADN'T FORMALLY WITHDRAWN ANY OFFERS HE CALLED MR AKAO'S ASSERTIONS ERRONEOUS AND SAID NEGOTIATIONS WOULD CONTINUE THE JAPANESE NEGOTIATOR SAID THE US WAS WITHDRAWING TARIFF CUTS ON INDUSTRIAL AND CONSUMER ELECTRONICS INCLUDING TELEPHONE EQUIPMENT AND TELEVISION AND VIDEO CAMERAS MR AKAO SAID HE RECEIVED THE LIST OF ITEMS THAT WOULD BE AFFECTED ONLY YESTERDAY FROM THE US TRADE MISSION A US TRADE OFFICIAL IN GENEVA SAID THE US WAS TARGETING PRODUCTS THAT WERE MADE ALMOST EXCLUSIVELY IN JAPAN IN ORDER TO LEAVE OTHER COUNTRIES UNDISTURBED THE MOOD ON TRADE WAS FURTHER SOURED BY JAPAN'S ANNOUNCEMENT YESTERDAY THAT ITS TRADE SURPLUS GREW IN JANUARY IN TOKYO THE EDGINESS WAS TYPIFIED BY CHIEF GOVERNMENT SPOKESMAN MASAYOSHI TAKEMURA WHO TOLD REPORTERS THAT HE IS CONCERNED ABOUT THE LATEST US DECISION REGARDING THE CELLULARPHONE DISPUTE AND THAT HE HOPES THE US WILL ACT SENSIBLY IN PARLIAMENT JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA HAD PREVIOUSLY RAISED THE POSSIBILITY THAT JAPAN MIGHT APPEAL TO GATT AS A RESPONSE TO UNILATERAL SANCTIONS FROM THE US JAPANESE NEWS REPORTS SAID REPORTS ALSO INDICATED THAT SOME SENIOR GOVERNMENT OFFICIALS MAY MEET AS EARLY AS THURSDAY TO DISCUSS A REACTION TO THE US TRADE MOVES IN A SEPARATE DEVELOPMENT THE US COMMERCE DEPARTMENT AND JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY JOINTLY ISSUED A STUDY CONCLUDING THAT JAPAN'S AUTOMOBILE MARKET IS EXTREMELY DIFFICULT AND EXPENSIVE TO ENTER PARTICULARLY FOR NEW ENTRANTS THE REPORT CITED FACTORS SUCH AS THE PRACTICES OF JAPANESE DEALERSHIPS AND JAPAN'S KNOTTY DISTRIBUTION SYSTEM AND MOTOROLA INC OF THE US AND IDO CORP OF JAPAN CENTRAL FIGURES IN THE BATTLE OVER JAPAN'S CELLULARTELEPHONE MARKET FLUNG RHETORICAL DAGGERS AT EACH OTHER IN TOKYO ON TUESDAY THE US ASSERTED THAT JAPAN HAS VIOLATED A 1989 AGREEMENT IN WHICH IT HAD PROMISED TO OPEN ITS CELLULARPHONE EQUIPMENT MARKET BY ALLOWING IDO TO USE NETWORK EQUIPMENT FROM MOTOROLA AT A HEAVILY ATTENDED NEWS CONFERENCE MOTOROLA VICE PRESIDENT ARNOLD BRENNER CHARGED THAT IDO LAST WEEKEND REJECTED A MOTOROLA PROPOSAL THAT COULD HAVE AVERTED THE US DECISION TO SEEK TRADE SANCTIONS AGAINST JAPAN BECAUSE IDO REFUSED TO ACCEPT A TIMETABLE FOR INSTALLING MOTOROLA NETWORK EQUIPMENT WE COULDN'T GO ANY FURTHER MR BRENNER SAID IDO PRESIDENT TAKEO TSUKADA HOWEVER INSISTED THAT MOTOROLA HAD NO BUSINESS EVEN MAKING THE TIMETABLE OFFER OUR COMPANYMANAGEMENT POLICY ISN'T DECIDED BY NEGOTIATING WITH MOTOROLA HE SAID WHAT RIGHT DO THEY HAVE TO ASK SUCH THINGS MICHAEL WILLIAMS IN TOKYO CONTRIBUTED TO THIS ARTICLE 9402170045 940217 BUSINESS BRIEF MONEY STORE INC A 3FOR2 SPLIT IS DECLARED FOURTHPERIOD NET ROSE 66 MONEY STORE INC DECLARED A 3FOR2 STOCK SPLIT AND REPORTED A 66 RISE IN FOURTHQUARTER PROFIT BOOSTED BY STRENGH IN ITS HOMEEQUITY SMALLBUSINESS AND GOVERNMENTGUARANTEED STUDENT LENDING THE FINANCIALSERVICES CONCERN IN UNION NJ SAID IT WILL ISSUE ON MARCH 16 ONE ADDITIONAL SHARE FOR EACH TWO SHARES HELD OF RECORD MARCH 2 ABOUT 135 MILLION SHARES WILL BE OUTSTANDING AFTER THE SPLIT MONEY STORE SAID THAT FOURTHQUARTER NET INCOME ROSE TO 73 MILLION OR 90 CENTS A SHARE FROM 44 MILLION OR 55 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 58 TO 745 MILLION FROM 472 MILLION A YEAR EARLIER FOR THE YEAR NET INCOME ROSE 43 TO 218 MILLION OR 270 A SHARE FROM 152 MILLION OR 190 A SHARE IN 1992 REVENUE CLIMBED NEARLY 40 TO 2198 MILLION FROM 1573 MILLION A YEAR EARLIER 9402170044 940217 YOUR MONEY MATTERS AGENCY REUNITES PEOPLE AND THEIR PENSIONS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THEY'RE FROM THE GOVERNMENT AND THEY'RE HERE TO HELP YOU THEY'RE THE PEOPLE AT THE PENSION BENEFIT GUARANTY CORP THE FEDERAL AGENCY THAT PROTECTS 41 MILLION US WORKERS FROM LOSING THEIR PENSIONS WHEN COMPANIES GO BELLY UP IN RECENT YEARS THE PBGC ALSO HAS ASSUMED THE ROLE OF GUMSHOE TRACKING DOWN THE RIGHTFUL OWNERS OF PENSIONS THAT GO UNCLAIMED AIMING TO EXPAND ITS INITIATIVE THE AGENCY IS ASKING CONGRESS TO NAME IT THE OFFICIAL DETECTIVE AGENCY FOR MISSING PENSIONERS OF ALL DISCONTINUED DEFINED BENEFIT PLANS THE OLDFASHIONED TYPE OF PENSION PLANS IN WHICH THE EMPLOYER MANAGES THE MONEY SUCH A MANDATE WOULD INCLUDE NOT ONLY THE PENSION PLANS OF BANKRUPT COMPANIES BUT ALSO THOSE TERMINATED BY HEALTHY COMPANIES FOR INSTANCE BY COMPANIES SWITCHING TO 401KS OR OTHER DEFINEDCONTRIBUTION PLANS THESE ARE EMPLOYERSPONSORED RETIREMENTSAVINGS PLANS THAT SHIFT INVESTMENT RISK TO EMPLOYEES WE WANT TO BE A KIND OF CLEARINGHOUSE FOR LOCATING LOST PARTICIPANTS SAYS WILLIAM POSNER THE PBGC'S DEPUTY EXECUTIVE DIRECTOR FOR US THIS IS OUR BOTTOM LINE OUR MISSION WE WANT TO GET PEOPLE THEIR PENSIONS WHEN THE TRAIL IS WARM TRACKING VANISHED PENSIONERS IS JUST A MATTER OF LOOKING UP THEIR RECORDS BUT ACCIDENTS HAPPEN WHEN PAN AM CORP WAS FAILING TWO YEARS AGO THE RECORDS OF ITS 37000 PENSION BENEFICIARIES UNWITTINGLY WERE HAULED TO A BANKRUPTCY AUCTION WITH THE SEVERAL DOZEN METAL FILING CABINETS THAT CONTAINED THEM FORTUNATELY THE PBGC HEARD ABOUT THE LIQUIDATION SALE IN TIME ON A SATURDAY AT DAWN PBGC SUPERVISOR TINA DRESSNER RUSHED TO THE AIRPLANE HANGAR AT JOHN F KENNEDY AIRPORT IN NEW YORK WHERE PAN AM'S EFFECTS WERE ABOUT TO GO ON THE BLOCK BY SCOURING THROUGH HEAPS OF USED OFFICE FURNITURE SHE INTERCEPTED THE TROVE OF DOCUMENTS BEFORE THEY WERE LOST FOR GOOD WITHOUT RECORDS THE PBGC'S JOB CAN REQUIRE SOME REAL SLEUTHING SKILLS AND NO SMALL DOSE OF LUCK TAKE THE RECENT CASE OF THE ILLITERATE TRUCK DRIVER HE WAS ONE OF A FEW DOZEN INDIVIDUALS OWED RETIREMENT BENEFITS BY PALACE FURNITURE A CLARKSBURG WVA RETAILER THAT CLOSED DOWN IN 1981 UNAWARE THAT HIS PENSION WAS INSURED BY THE PBGC AND STILL WOULD BE PAID THE MAN FADED AWAY WITHOUT A TRACE RESCUED FROM THE GARBAGE THAT MIGHT HAVE BEEN THE END OF THE STORY BUT FOR ONE CLUE ON A RAINY AFTERNOON JUST AFTER THE BUSINESS FOLDED DEWITT SHINGLETON PALACE'S BOOKKEEPER HAD SPOTTED THE COMPANY'S PERSONNEL RECORDS LYING IN A TRASH CONTAINER BEING A CONSCIENTIOUS PERSON HE FISHED THEM OUT TOOK THEM HOME AND SPREAD THEM OUT ON THE CARPET TO DRY THEN NOT KNOWING WHAT ELSE TO DO WITH THEM HE STORED THEM IN A CLOSET WORKING ON THE TIP PBGC CASE OFFICER RACHELLE WEISER PLACED AN AD IN THE CLARKSBURG EXPONENT A LOCAL NEWSPAPER TO CALL FORMER PALACE EMPLOYEES TO A MEETING AT THE COUNTY COURTHOUSE OVER TWO DAYS ALMOST ALL OF PALACE'S EXEMPLOYEES SHOWED UP TO CLAIM THEIR PENSIONS BUT THE ILLITERATE TRUCK DRIVER WASN'T AMONG THEM PALACE'S FORMER EMPLOYEES POINTED MS WEISER IN THE DIRECTION OF A LOCAL MCDONALD'S KNOWN TO BE ONE OF THE MAN'S FAVORITE HAUNTS AT LAST ON A MONDAY MORNING STAKEOUT SHE CAUGHT UP WITH HIM THAT'S ONE OF THE PERKS OF THE JOB MS WEISER SAYS I'VE HAD OTHER JOBS WHERE IT'S HARD TO SEE THE END RESULTS HERE YOU CAN SEE THE LOOK ON SOMEONE'S FACE THE TALLY OF MISSING PENSIONERS THE PBGC EXPECTS TO TRACK AT A GIVEN TIME IS SMALL NUMBERING FEWER THAN 1000 A YEAR SOME ARE WIDOWS AND WIDOWERS WHO DON'T KNOW THEY'RE ENTITLED TO A DECEASED SPOUSE'S PENSION AND NEVER APPLIED FOR IT OTHERS KNOW THEY'RE OWED RETIREMENT BENEFITS BUT BECAUSE THEIR EMPLOYERS HAVE GONE BELLYUP THEY ASSUME THOSE PENSION PROMISES ARE A THING OF THE PAST THE PBGC FRETS THAT CURRENT TRENDS IN THE WORK FORCE COULD SWELL THE NUMBER OF MISPLACED PENSIONS OVER TIME AS RECESSION AND CORPORATE RESTRUCTURINGS SEND MORE WORKERS BOUNCING FROM JOB TO JOB FEWER WORKERS WILL END UP COLLECTING JUST ONE PENSION WHEN THEY RETIRE SUCH MOBILITY MEANS THAT MANY SMALL PENSIONS ACCUMULATED HERE AND THERE COULD FALL BETWEEN THE CRACKS PENSION PROS WARN THE PBGC'S SLEUTHING DOESN'T COVER 401KS AND OTHER DEFINEDCONTRIBUTION PLANS WHILE MOST WORKERS KEEP THEIR ADDRESSES CURRENT WITH THEIR OLD EMPLOYERS OR THE INVESTMENT FIRMS HANDLING THEIR ACCOUNTS SOME PEOPLE ESPECIALLY YOUNG JOBHOPPERS AREN'T SO DILIGENT YOU DO HAVE SITUATIONS WHERE YOU JUST CAN'T FIND PEOPLE SAYS DOUGLAS KANT SENIOR LEGAL COUNSEL FIDELITY INVESTMENTS WHICH HANDLES 401K ACCOUNTS EMPLOYERS CAN TRACE MANY MISSING PARTICIPANTS THROUGH THE INTERNAL REVENUE SERVICE OR THE SOCIAL SECURITY ADMINISTRATION BUT THEY'RE NOT FOOLPROOF HE ADDS AMONG STEPS EMPLOYEES CAN TAKE TO LOCATE LOST PENSIONS KEEP EMPLOYMENT RECORDS SUCH AS W2S OTHER EARNINGS STATEMENTS AND PENSION DOCUMENTS SUCH AS SUMMARY ANNUAL REPORTS OR ANNUAL BENEFITS STATEMENTS AS PROOF OF PROMISED RETIREMENT BENEFITS INFORMATION ABOUT LOST BENEFITS MIGHT TURN UP WHEN YOU FILE FOR SOCIAL SECURITY AT THAT POINT THE SOCIAL SECURITY ADMINISTRATION IS SUPPOSED TO NOTIFY YOU AUTOMATICALLY ABOUT PBGCGUARANTEED CORPORATE PENSIONS TO WHICH YOU'RE ENTITLED HOWEVER THE AGENCY ISN'T SET UP TO HANDLE OUTSIDE REQUESTS A SOCIAL SECURITY PRESS OFFICER WARNS DON'T CALL IT IT'LL CALL YOU 9402170043 940217 ECONOMY HOUSING STARTS TUMBLED 176 DURING JANUARY FREEZE CITED IN BIGGEST DROP IN 3 YEARS BUT MARKET IS EXPECTED TO REBOUND BY ALBERT R KARR AND LINDLEY H CLARK JR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS PLUNGED 176 IN JANUARY THE COMMERCE DEPARTMENT SAID AS THE BIG FREEZE IN MUCH OF THE NATION CHILLED HOMEBUILDING AFTER A STRONG SURGE LATE LAST YEAR EVEN WITHOUT THE BAD WEATHER ECONOMISTS SAID THE ROBUST DECEMBER CONSTRUCTION PACE COULDN'T CONTINUE STILL ANALYSTS AND INDUSTRY EXECUTIVES FIGURE THE MARKET WILL IMPROVE WITH THE WEATHER AND THEY LOOK FOR HOUSING THE FASTESTGROWING SECTOR OF THE ECONOMY IN THE FOURTH QUARTER TO TURN IN ANOTHER STRONG PERFORMANCE IN 1994 JANUARY STARTS FELL TO AN ANNUAL RATE OF 1294000 UNITS THE LOWEST LEVEL SINCE LAST JULY FROM A REVISED 1571000 IN DECEMBER THE DEPARTMENT SAID IT WAS THE LARGEST MONTHLY DROP IN THREE YEARS STARTS FELL 33 IN THE ALREADY DEPRESSED NORTHEAST WHERE THE FREEZE WAS MOST SEVERE AND AROUND 22 IN THE MIDWEST AND SOUTH THEY ROSE SLIGHTLY IN THE WEST DESPITE THE EFFECTS OF THE LOS ANGELES EARTHQUAKE THE HOUSING FIGURES ALONG WITH LAST WEEK'S REPORT ON LOWER RETAIL SALES INDI CATE SOME POSSIBILITY OF A SLOWER FIRST QUARTER THAN WE MIGHT HAVE ANTICIPATED COMMERCE SECRETARY RONALD BROWN SAID BUT THE ECONOMY'S UNDERLYING MOMENTUM REMAINS INTACT SOME ANALYSTS THINK IT WILL TAKE AT LEAST A LITTLE WHILE FOR HOMEBUILDING TO REBOUND BUT MANY OF THEM LOOK FOR STARTS TO EQUAL OR TOP LAST YEAR'S 13 MILLION THE HIGHEST SINCE 1989 AND THEY EXPECT NO SERIOUS DAMAGE FROM THE FEDERAL RESERVE'S BOOST IN SHORTTERM INTEREST RATES EARLIER THIS MONTH THE THAW THAT STARTED THIS WEEK WILL HAVE TO CONTINUE FOR THE REMAINDER OF THE MONTH FOR A MARKED RECOVERY IN HOUSING STARTS TO OCCUR FOR FEBRUARY SAID ROBERT SHEEHAN ECONOMIST FOR THE NATIONAL APARTMENT ASSOCIATION WHILE SINGLEFAMILY STARTS WERE OFF 85 IN JANUARY THOSE FOR MULTIFAMILY UNITS FELL 34 BOB DAVIS CHIEF ECONOMIST AT SAVINGS & COMMUNITY BANKERS OF AMERICA DOESN'T SEE A FULL REBOUND UNTIL MARCH BUT HE PREDICTS ABOUT 15 MILLION HOUSING STARTS THIS YEAR WHAT'S STILL UNCLEAR IS THE IMPACT OF THE FED'S DECISION THIS MONTH TO RAISE THE FEDERALFUNDS RATE TO 325 FROM 3 THE INCREASE IN THAT RATE THE FEE BANKS CHARGE ON OVERNIGHT LOANS TO ONE ANOTHER IS AFFECTING OTHER SHORTTERM RATES AND WILL TEND TO MAKE ADJUSTABLERATE MORTGAGES MORE EXPENSIVE ARM RATES GENERALLY MOVE WITH SHORTTERM RATES NOTABLY THOUGH THREEFOURTHS OF ALL MORTGAGE BORROWERS ARE OPTING FOR FIXEDRATE LOANS AND THAT SHARE SEEMS ALMOST CERTAIN TO GROW THE MORTGAGE BANKERS ASSOCIATION REPORTS THAT IN THE WEEK AFTER THE FED'S ACTION THE AVERAGE INTEREST RATE ON 30YEAR FIXEDRATE MORTGAGES ROSE TO 72 FROM 69 BUT A LOT OF THIS WAS FROM REFINANCING SAYS DAVID LEREAH CHIEF ECONOMIST PEOPLE HAD BEEN WAITING FOR RATES TO FALL FARTHER AND WHEN THEY DIDN'T THEY REFINANCED I DON'T EXPECT RATES TO CHANGE MUCH IN THE NEAR FUTURE RATES ARE STILL AROUND 25YEAR LOWS AND ARE LIKELY TO CONTINUE TO DRIVE SALES AT THE END OF LAST YEAR MOREOVER THE HOMES AVAILABLE FOR SALE TOTALED ONLY A 4 1/2MONTH SUPPLY THE SMALLEST INVENTORY SINCE 1971 A SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS SHOWS MEMBERS' FEELINGS ABOUT THE FUTURE ARE IN REALLY BRIGHT SHAPE SAID DAVID SEIDERS CHIEF ECONOMIST HE FORECASTS 1994 HOUSING STARTS OF ABOUT 14 MILLION INCLUDING THE HIGHEST SINGLEFAMILY TOTAL SINCE 1978 OUR QUARTER ENDED JAN 31 SET A RECORD FOR NEW CONTRACTS SIGNED SAYS JOE SICREE A SPOKESMAN FOR TOLL BROTHERS A MAJOR BUILDER OF SINGLEFAMILY HOMES BASED IN HUNTINGDON VALLEY PA WE'RE VERY BULLISH ON 1994 MR SEIDERS SAYS HOWEVER THAT RECENT TRAFFIC OF PROSPECTIVE HOME BUYERS ALONG WITH THE JANUARY HOUSING STARTS AND BUILDINGPERMITS FIGURES HAVE BEEN SLUGGISH PERMITS FOR FUTURE CONSTRUCTION WERE OFF 8 IN JANUARY FALLING TO 1360000 FROM 1476000 IN DECEMBER AN INDICATION THAT ANY HOMEBUILDING PICKUP FROM JANUARY MAY BE SLOW TO ARRIVE PERMITS IN THE NORTHEAST FELL A FULL 42 FROM DECEMBER WEATHER WASN'T THE ENTIRE JANUARY STORY HOWEVER ECONOMISTS SAID THE SLOWDOWN SHOWS THE ECONOMY IS TAKING A BREATHER AFTER A FRENETIC FINALE TO 1993 SAID ROBERT BARR DEPUTY CHIEF ECONOMIST FOR THE US CHAMBER OF COMMERCE THE JANUARY DATA THOUGH STILL 11 AHEAD OF JANUARY 1993 SHOW CONSTRUCTION WORK RETRENCHING TO A LEVEL MORE IN LINE WITH THE 3 ECONOMIC GROWTH THAT THE CHAMBER PROJECTS FOR 1994 HE SAID LAST YEAR'S FIGURES FOR THE HOUSING INDUSTRY INCLUDING BOTH NEW CONSTRUCTION AND SALES OF EXISTING HOMES ARE STRIKING HOUSING GREW AT A 32 RATE IN THE LAST THREE MONTHS OF 1993 MAKING A MAJOR CONTRIBUTION TO THE 59 JUMP IN INFLATIONADJUSTED GROSS DOMESTIC PRODUCT FOR THE PERIOD THE BIGGEST FACTOR WAS SINGLEFAMILY CONSTRUCTION SECRETARY HENRY CISNEROS OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ANNOUNCING THE PUBLICATION OF A NEW QUARTERLY PUBLICATION ON HOUSING STATISTICS SAID THAT THE LAST QUARTER OF 1993 SHOWS CLEARLY THAT HOUSING IS REBOUNDING AND PLAYING ITS TRADITIONAL LEADING ROLE IN ECONOMIC RECOVERY 9402170042 940217 BUSINESS BRIEF CONSOLIDATED NATURAL GAS CO FOURTHPERIOD NET FELL 11 BUT OPERATING PROFIT ROSE CONSOLIDATED NATURAL GAS CO SAID IMPROVING PRICES AND INCREASED DELIVERIES PUSHED OPERATING PROFIT HIGHER IN THE FOURTH QUARTER BUT NET INCOME DECLINED 11 DUE TO SPECIAL ITEMS FOR THE QUARTER THE NATURAL GAS CONCERN REPORTED NET INCOME OF 861 MILLION OR 93 CENTS A SHARE COMPARED WITH NET OF 97 MILLION OR 105 A SHARE IN THE YEARAGO QUARTER REVENUE INCREASED 30 TO 103 BILLION THE 1992 FOURTH QUARTER INCLUDED A GAIN OF 57 MILLION OR SEVEN CENTS A SHARE FROM CHANGES IN INCOMETAX REPORTING AS WELL AS A REVERSAL OF AN ESTIMATED 97 MILLION LIABILITY RELATED TO THE COMPANY'S LIQUEFIED NATURAL GAS OPERATIONS WITHOUT THE SPECIAL ITEMS THE COMPANY SAID EARNINGS WOULD HAVE INCREASED ABOUT 5 DURING THE FOURTH QUARTER THE COMPANY SAID BITTERLY COLD WEATHER IN THE FIRST FEW WEEKS OF 1994 WILL BENEFIT THE COMPANY IN THE FIRST QUARTER IN NEW YORK STOCK EXCHANGE TRADING CONSOLIDATED NATURAL GAS STOCK DECLINED 875 CENTS TO 4450 9402170041 940217 REVIEW & OUTLOOK EDITORIAL DANGEROUS GAMES AS EVERY FOREIGN EXCHANGE TRADER KNOWS MANY THINGS HAPPEN IN THE MARKET THAT HAVEN'T BEEN WILLED BY ANYONE THERE WAS NO OVERT SIGN THAT WASHINGTON AIDED THE DOLLAR'S PLUNGE AGAINST THE YEN MONDAY BY THAT OLD GAME OF TALKING THE DOLLAR DOWN BUT CLEARLY THE ADMINISTRATION WAS NONCHALANT WHEN WHITE HOUSE ECONOMIC ADVISER LAURA TYSON ASSURED EVERYONE THAT THE NOSE DIVE WOULDN'T TOUCH OFF INFLATION TRADERS ASSUMED THAT BILL CLINTON WAS NOT AT ALL DISPLEASED BY THE EVENT THIS ADMINISTRATION SEEMS TO THINK AS WITH SO MANY ISSUES THAT IT CAN BE COY ABOUT EXCHANGERATE MANIPULATION AND GET AWAY WITH IT COMMERCE SECRETARY RON BROWN INSISTS THERE IS NO DELIBERATE EFFORT TO DRIVE UP THE YEN BUT IT'D BE A OK IF IT HAPPENED AMID THIS CUTENESS THE NATIONAL ECONOMIC COUNCIL'S BOWMAN CUTTER IN AN INTERVIEW WITH THE DOW JONES WIRE SERVICE YESTERDAY TRIED TO KNOCK DOWN STORIES CIRCULATING IN THE JAPANESE MEDIA THAT THE ADMINISTRATION WAS NOW INTO MANIPULATING THE DOLLARYEN RELATIONSHIP HE NOTED THAT ANY SUCH CALL GETS MADE BY LLOYD BENTSEN AND PRESIDENT CLINTON REASSURANCES NOTWITHSTANDING WE THINK THIS ADMINISTRATION WILL HAVE TO LIVE WITH A LOT OF SUSPICION IN THE MARKETS ABOUT ITS PENCHANT FOR DRIVING POLICY WITH CLEVER RHETORIC BESIDES THE MARKETS HAVE BEEN ALONG FOR THIS RIDE BEFORE IN 1987 THE US MANAGED TO TOUCH OFF A WALL STREET CRASH BY TALKING THE DOLLAR DOWN IN THAT CASE TO PUNISH THE GERMANS FOR THEIR SINS THE CIRCUMSTANCES ARE DIFFERENT THIS TIME BUT IT IS ONLY FAIR TO WARN MR CLINTON THAT MONEY GAMES ARE DANGEROUS TRYING TO BRING ANOTHER NATION TO HEEL THROUGH COMPETITIVE DEVALUATION CAN WORK TOO WELL DAMAGING BOTH PARTIES TO THE STRUGGLE IT'S NOT IN THE INTEREST OF THE US TO FURTHER DAMAGE THE FRAGILE JAPANESE FINANCIAL SECTOR THE EFFECT OF JACKING UP THE YEN FURTHER WOULD BE TO REDUCE THE CASH FLOW IN YEN OF JAPANESE CORPORATIONS WHICH ARE STRUGGLING FOR PROFITS GIVEN THE HITS THEIR BALANCE SHEETS ALREADY HAVE TAKEN FROM THE VICIOUS DEFLATION IN JAPANESE STOCKS AND REAL ESTATE A FURTHER JAB IS MOST UNHELPFUL AND MAYBE DANGEROUS JAPAN'S ECONOMY IS IN SEVERE STRAITS BECAUSE DEFLATION HAS EXPOSED THE FUNDAMENTAL WEAKNESS OF THE JAPAN INC MODEL THE INTRICATE CROSSINVESTMENTS OF BANKS SECURITIES FIRMS AND INDUSTRIAL CORPORATIONS HAVE MEANT THAT WHEN ONE BIG ENTERPRISE'S BALANCE SHEET IS HIT ALL ARE WHEN MANY ARE HIT AT ONCE BY SOMETHING AS BROAD AND SEVERE AS JAPAN'S ASSET DEFLATION THERE ARE ENORMOUS FINANCIAL STRESSES JAPAN'S ECONOMIC POLICY MASTERMINDS HAVE BEEN IN ESSENCE IMPROVISING TO KEEP THE BANKING INDUSTRY AFLOAT AMONG THE MEASURES DESIGNED TO PUMP UP STOCKS HAVE BEEN PURCHASES BY THE POSTAL SAVINGS SYSTEM AND CURBS ON NEW STOCK ISSUES NEITHER OF WHICH IS AN ESPECIALLY HEALTHY CURE THE YEN RISE HITS JUST WHEN BANKS ARE TRYING TO CLEAN UP THEIR BALANCE SHEETS BY SELLING SOME OF THEIR TROUBLED OVERSEAS INVESTMENTS PARTICULARLY THEIR WEAKER LOANS IN EUROPE THE UPSHOT OF A YEN BOOST IS THAT THESE SALES YIELD LESS IN YEN THAN THEY WOULD HAVE A WEEK AGO THE UNCERTAIN HEALTH OF JAPANESE BANKS IS NOT IMPROVED BY HAVING THEIR REDUCED LOAN RECOVERIES FURTHER DIMINISHED BY FOREIGNEXCHANGE LOSSES IT IS SIGNIFICANT THAT AMERICAN TREASURY BONDS DIDN'T RESPOND WELL TO THE RISE IN THE YEN ONE FACTOR OF COURSE IS A FEAR OF THE INFLATION THAT MS TYSON IS SO UNCONCERNED ABOUT BUT IT SHOULD NEVER BE FORGOTTEN THAT THE BOND MARKET IS GLOBAL AND ANY SETBACKS FOR THE FINANCIAL SECTOR OF A BIG PLAYER LIKE JAPAN IS NOT GOOD NEWS FOR BONDS ANYWHERE PERHAPS IT IS TOO MUCH TO ASK THAT AMERICAN POLITICIANS OR FOR THAT MATTER THE PRESENT CAST OF WHITE HOUSE ECONOMIC ADVISERS SHOULD UNDERSTAND WHAT UNFORESEEN FALLOUT MIGHT ARISE FROM WHAT TO THEM ARE MERELY EXERCISES IN HARDBALL POLITICS NOR SHOULD ANYONE DOUBT THIS ADMINISTRATION'S INTERVENTIONIST INSTINCTS WE ARE RESOLUTE ABOUT OPENING UP JAPAN SECRETARY BROWN SAID YESTERDAY ON THE OCCASION OF A PRESS BRIEFING FOR THE USBROKERED 6 BILLION AIRCRAFT PURCHASE BY THE SAUDIS HAILED AS A TRADE VICTORY FOR MR CLINTON'S NATIONAL EXPORT STRATEGY THE DEAL IS BEING GUARANTEED BY THE EXPORTIMPORT BANK SEN PATTY MURRAY REVEALED LAST AUGUST THAT MR CLINTON HAD PERSONALLY INTERVENED WITH KING FAHD TO DO THE DEAL AND YESTERDAY THE PRESIDENT SAID WHEN I THINK IT'S APPROPRIATE AND POTENTIALLY HELPFUL I DON'T MIND ASKING FOR THE BUSINESS WE SUPPOSE WHACKING AROUND JAPAN'S ECONOMY DURING ITS GREATEST POSTWAR POLITICAL TRANSITION IS JUST ANOTHER DAY AT THE OFFICE FOR THESE FOLKS BUT UNPLEASANT THINGS CAN OFTEN AND UNEXPECTEDLY HAPPEN WHEN POLITICIANS PLAY AROUND WITH SOMETHING AS FUNDAMENTAL AS MONEY AND MARKETS THE DOLLARYEN RELATIONSHIP IS A PARTICULARLY SENSITIVE ONE FOR THE GLOBAL FINANCIAL MARKETS AT THIS MOMENT WE URGE MR CLINTON AND HIS ECONOMIC ADVISERS NOT TO GET TOO CUTE ABOUT THE DOLLAR DECLINE MARKETS HAVE A WAY OF PUNISHING GLIB THINKING 9402170040 940217 US CHAMBER OF COMMERCE SPLITS AGAIN OVER ISSUE OF HEALTHINSURANCE MANDATE BY JEANNE SADDLER AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON UNDERSCORING A RIFT IN THE NATION'S LARGEST BUSINESS ORGANIZATION A KEY COMMITTEE OF THE US CHAMBER OF COMMERCE AGAIN RECOMMENDED THAT THE ORGANIZATION ENDORSE REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE THE HEALTH POLICY PANEL'S ACTION COMES LESS THAN TWO WEEKS AFTER A CHAMBER OFFICIAL WITHDREW COPIES OF WRITTEN TESTIMONY ENDORSING THE SOCALLED EMPLOYER MANDATE SHORTLY BEFORE IT WAS TO BE DELIVERED TO THE HOUSE WAYS AND MEANS COMMITTEE THE LATEST ACTION HIGHLIGHTS TENSION BETWEEN THE CHAMBER'S BIG CORPORATE MEMBERS AND THE SMALL BUSINESSES THAT MAKE UP 95 OF ITS MEMBERS SOME SMALLBUSINESS MEMBERS WHO COMPLAIN THAT AN EMPLOYER MANDATE WOULD FORCE THEM TO LAY OFF WORKERS OR EVEN SHUT DOWN SAY THE HEALTH POLICY COMMITTEE IS DOMINATED BY BIG BUSINESSES INCLUDING CHRYSLER CORP LARGER COMPANIES WHICH ARE MORE LIKELY THAN SMALL ONES TO PROVIDE HEALTH COVERAGE FOR THEIR WORKERS CURRENTLY TEND TO SUPPORT MANDATES THEY SAY THEY CURRENTLY END UP PAYING HIGHER HEALTHCARE COSTS TO COVER A LARGE PORTION OF THE UNINSURED POPULATION THE MANDATE ENDORSED BY THE HEALTH POLICY COMMITTEE THIS WEEK IS ESSENTIALLY THE SAME IT HAD FAVORED IN THE REVOKED TESTIMONY NAMELY THAT EMPLOYERS' HEALTHCARE PAYMENTS BE PHASED IN UNTIL THEY REACH 50 OF THE COST OF A LOWESTPRICED PLAN BY THE YEAR 2000 THE CLINTON ADMINISTRATION FAVORS REQUIRING EMPLOYERS TO PAY 80 OF THE COST OF WORKERS' HEALTH COVERAGE TWO WEEKS AGO AFTER WITHDRAWING THE CHAMBER'S EARLIER TESTIMONY ROBERT PATRICELLI CHAIRMAN OF THE HEALTH POLICY COMMITTEE COMPLAINED THAT THE PRESIDENT'S PLAN GIVES MANDATES A BAD NAME A CHAMBER OFFICIAL REFUSED YESTERDAY TO CONFIRM THE POLICY COMMITTEE'S LATEST ACTION AND STRESSED THAT FIVE OTHER COMMITTEES WILL VOTE ON THE HEALTHCARE ISSUE BEFORE THE FULL BOARD MAKES ITS DECISION AT THE END OF THE MONTH BUT TWO OF THE CHAMBER'S AFFILIATES THAT REPRESENT SMALL BUSINESSES SAID THEY WERE ALARMED BY THE POLICY COMMITTEE'S MOVE I WENT TO THAT MEETING HOPING THEY'D CHANGED THEIR MINDS WE WERE VERY HEARTENED AFTER THE BUSINESS ROUNDTABLE CAME OUT AGAINST MANDATES AND AFTER OUR TESTIMONY BEFORE THE WAYS AND MEANS COMMITTEE SAID KATHY MCKIMMIE VICE PRESIDENT FOR HUMAN RESOURCES OF THE INDIANA CHAMBER OF COMMERCE BUT EVERY TIME I GO TO WASHINGTON I'M AMAZED WE DON'T SUPPORT BIG GOVERNMENT AND MANDATES AND WE CONTINUE TO DISTANCE OURSELVES FROM THE US CHAMBER IN ALL OUR COMMUNICATIONS WITH OUR MEMBERS SHE ADDED JOHN POLK PRESIDENT OF THE COUNCIL OF SMALLER ENTERPRISES A CLEVELANDBASED ORGANIZATION AFFILIATED WITH THE CHAMBER SAID HE WOULD BE ASTONISHED IF THE CHAMBER ULTIMATELY DECIDES TO BACK EMPLOYER MANDATES THERE'S A CLEAR PERCEPTION ON CAPITOL HILL THAT THE CHAMBER IS IN A CERTAIN AMOUNT OF DISARRAY HE SAID BUT DOROTHY SANDER VICE PRESIDENT FOR BENEFITS FOR HANSON INDUSTRIES A MANUFACTURING HOLDING COMPANY IN ISELIN NJ SAID THE CLEAR CONSENSUS OF THE HEALTH POLICY COMMITTEE WAS THAT BUSINESSES DO SUPPORT SOME FORM OF A MANDATE ALTHOUGH NOT THE ONE PROPOSED BY THE PRESIDENT I THINK THEY CHAMBER OFFICIALS SEE THIS AS CLARIFYING THEIR POSITION SHE SAID IF YOU SUPPORT UNIVERSAL COVERAGE YOU HAVE TO HAVE SOME FORM OF A MANDATE THE COMMITTEE ALSO SUGGESTED THAT CHAMBER OFFICIALS TO POLL ALL THEIR COMPANY MEMBERS ON THE MANDATE ISSUE SHE SAID IN ADDITION THE COMMITTEE SUGGESTED THAT ANY HEALTHCARE SYSTEM FORCE COMPANIES TO COVER ALL THEIR WORKERS INSTEAD OF PERMITTING SOME TO BE COVERED UNDER SPOUSES' PLANS THE IDEA WAS SEEN AS FAVORING BIG MANUFACTURERS MR PATRICELLI THE COMMITTEE'S CHAIRMAN WAS OUT OF THE COUNTRY AND COULDN'T BE REACHED HE IS PRESIDENT OF VALUE HEALTH INC A CONNECTICUT COMPANY THAT PROVIDES MANAGED HEALTH CARE AND HEALTH INFORMATION SERVICES A CHRYSLER OFFICIAL WHO ATTENDED THE MEETING COULDN'T BE REACHED FOR COMMENT MEANWHILE PRESIDENT CLINTON WARNED A SENIOR CITIZENS GROUP THAT THEY COULD LOSE HEALTH BENEFITS IF HIS HEALTH CARE PLAN ISN'T PASSED THERE ARE A LOT OF PEOPLE WHO REALLY BELIEVE THE ONLY WAY TO REDUCE THE DEFICIT AND TO REFORM HEALTH CARE IS TO BASICALLY TAKE BENEFITS AWAY FROM OLDER AMERICANS MR CLINTON TOLD A GENERALLY RESERVED CROWD MADE UP LARGELY OF MEMBERS OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS IN EDISON NJ WE HAVE SHOWN THAT YOU CAN REDUCE THE DEFICIT AND REFORM HEALTH CARE AND BE FAIR TO OLDER AMERICANS MR CLINTON'S OWN HEALTH PROPOSAL WOULD REDUCE PROJECTED MEDICARE SPENDING PRIMARILY BY SQUEEZING DOCTORS AND HOSPITALS RATHER THAN THEIR PATIENTS IT WOULD USE THE SAVINGS TO PAY FOR A NEW PRESCRIPTIONDRUG PROGRAM FOR MEDICARE BENEFICIARIES THE PRESIDENT WHO WAS ACCOMPANIED BY HILLARY RODHAM CLINTON URGED HIS AUDIENCE TO APPLY ITS CONSIDERABLE LOBBYING CLOUT TO COUNTER INDUSTRY GROUPS THAT OPPOSE HIS PLAN I WOULD RESPECTFULLY SUGGEST THAT THE AARP OUGHT TO BE FOR THE ONLY PLAN THAT HELPS YOU HE SAID OTHERWISE THE INTEREST GROUPS WILL CONVINCE CONGRESS THAT YOU DON'T REALLY CARE AND YOU WILL LOSE THESE PARTS OF OUR PLAN THE TIME HAS COME TO BE COUNTED TO STAND UP TO TAKE A STAND AND TO FIGHT WITH US 9402170039 940217 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY THE SECOND COLD WAR BY KAREN ELLIOTT HOUSE GOOD FENCES MAKE GOOD NEIGHBORS MUNICH THIS BIT OF WISDOM FROM THE NEW ENGLAND POET'S NEIGHBOR IS AS APPLICABLE TO THE AFFAIRS OF NATIONS AS TO NEIGHBORHOODS YET IT'S BEING IGNORED BY THE WEST'S WISHFULTHINKING LEADERS AS THEY SEEK TO FASHION A POSTCOLD WAR WORLD IN WHICH ALL GROUND IS COMMON ALL DIFFERENCES CAN BE COMPROMISED AND ALL TRUTHS ARE RELATIVE THE SOVIET UNION HAS COLLAPSED BUT IT DOES NOT FOLLOW THAT WE NOW LIVE IN A WORLD OF WHITE HATS WHO SHARE AS ALL TOO MANY CLINTONITES WOULD HAVE IT COMMON ASPIRATIONS GOALS AND GOOD FEELINGS THIS IS NO MORE THE CASE TODAY THAN AFTER WORLD WAR I WHEN A COMBINATION OF COWARDICE AND NAIVETE LED WESTERN LEADERS TO IGNORE RISING GERMAN AND JAPANESE IMPERIALISM AND SET THE STAGE FOR WORLD WAR II A SIMILAR COMBINATION OF ESCAPISM AND DELUSION IS SETTING THE STAGE FOR COLD WAR II THIS STARK CONCLUSION WAS UNDERSCORED AT TWO RECENT GATHERINGS OF DEFENSE MINISTERS AND OTHER SECURITY EXPERTS IN TOKYO AND IN MUNICH THE MEETINGS ALLEGEDLY FOCUSED ON THREATS TO NORTH ASIA AND TO EUROPE ASSEMBLED EXPERTS DEBATED SECURITY ISSUES WHILE SCARCELY MENTIONING THE REAL THREATS TO SECURITY IN TOKYO AMERICAN JAPANESE AND RUSSIAN OFFICIALS SPENT MOST OF TWO DAYS DISCUSSING SECURITY PROBLEMS IN ASIA WITHOUT BRINGING THEMSELVES TO MENTION THE LOOMING THREAT OF A MILITARIZING AUTOCRATIC CHINA ONE RUSSIAN CAME CLOSE BY EUPHEMISTICALLY ALLUDING TO A REGIONAL POWER CENTER THAT DOESN'T SHARE OUR IMPRESSION OF HUMAN DIGNITY IN MUNICH US AND WESTERN EUROPEAN SECURITY EXPERTS LIKEWISE DISCUSSED NEW SECURITY FRAMEWORKS FOR EUROPE WITH ALL BUT A FEW FORMER REAGAN ADVISERS PUBLICLY AVOIDING THE OBVIOUS THREAT A REEXPANDING RUSSIA ALREADY MOVING TO REABSORB ITS FORMER EMPIRE TO SPEAK THE WORD CHINA OPENLY IN TOKYO OR RUSSIA IN MUNICH WAS TO BE THE PROVERBIAL SKUNK AT THE GARDEN PARTY AT BOTH PARLEYS THE NAMES WERE CONFINED TO WHISPERS IN HALLWAYS AS IN WASHINGTON THE CONVENTIONAL WISDOM AT THESE MEETINGS WAS THAT THE WORLD MUST AVOID DRAWING LINES THE WISHFUL THINKERS INSTEAD HOLD THAT THE WEST MUST ENGAGE IN A PARTNERSHIP FOR PEACE THAT OFFERS EQUAL OPPORTUNITY TO ALL IN A WORLD ORDER SO AMBIGUOUS AS TO BE MEANINGLESS THIS PFP'S VENERATION OF AMBIGUITY ASSUMES THAT DRAWING LINES TO DEFINE WESTERN INTERESTS IS WHAT HAS CAUSED PREVIOUS CONFLICTS RATHER THAN PREVENTED THEM SOME WESTERN STATESMEN KNOW BETTER BUT THEY INDULGE A STRONG DESIRE TO BELIEVE THAT IN THE POSTCOLD WAR WORLD TIME IS SOMEHOW ON OUR SIDE PROBLEMS IGNORED CAN BE FACED LATER AT NO HIGHER COST BLURRED THINKING IS COMPOUNDED BY A WESTERN SENSE OF GUILT THAT PERVADES THE US AND EXTENDS TO ITS POLICIES ABROAD A SOCIETY PREPARED TO EXCUSE THE MENENDEZ BROTHERS FOR MURDERING THEIR PARENTS IS ONE VERY MUCH INCLINED TO OVERLOOK KIM IL SUNG'S NUCLEAR AMBITIONS BECAUSE HE FEELS ISOLATED OR TO EXCUSE INCIPIENT RUSSIAN EXPANSIONISM BECAUSE RUSSIANS FEEL FRUSTRATED THAT THE US HASN'T DONE ENOUGH TO HELP THEM THE POINT ISN'T TO PROCLAIM AN EXPANSIVE RUSSIA OR A MILITARIZING CHINA AS INEVITABLE ENEMIES OF THE WEST NOR TO SUGGEST THAT A NEW COLD WAR WOULD BE A LITERAL REPEAT OF THE LAST BUT THE SUREST WAY TO AVOID COLD WAR II IS FOR AMERICA TO MAKE ABUNDANTLY CLEAR PRECISELY WHERE WESTERN INTERESTS LIE TO DRAW LINES RATHER THAN LET OTHERS DRAW THEM IN WAYS AND PLACES THAT THREATEN US INTERESTS YET THE CLINTON ADMINISTRATION IS DOING JUST THE OPPOSITE AN IMMEDIATE EXAMPLE IS NORTH KOREA WHICH CONTINUES TO BUILD NUCLEAR WEAPONS THE COMBINED COWARDICE OF THE US JAPAN AND ESPECIALLY SOUTH KOREA IS CLEAR IN THEIR OFFERING PYONGYANG MORE AND MORE ENTICEMENTS FROM PROMISES OF AID TO PLEDGES TO CANCEL MILITARY EXERCISES IN SOUTH KOREA TO GET NORTH KOREA TO DROP ITS NUCLEAR AMBITIONS THE TRIPARTITE CONSENSUS AVOIDS DRAWING LINES OR SETTING DEADLINES IN THE MISGUIDED BELIEF THAT TIME IS ON OUR SIDE AND KIM IL SUNG ISN'T CRAZY ENOUGH TO USE NUCLEAR WEAPONS MEANWHILE PYONGYANG EXPORTS ITS NUCLEAR TECHNOLOGIES TO IRAN AN EQUALLY DANGEROUS ENEMY OF AMERICA BOSNIA IS ANOTHER OBVIOUS SECURITY THREAT THERE THE BUSH ADMINISTRATION'S FAILURE TO DRAW LINES HAS BEEN COMPOUNDED BY CLINTONITES' EMPTY THREATS AND INACTION AFTER MORE THAN 22 MONTHS OF SERBIAN SHELLING OF SARAJEVO THE WEST IS EDGING TOWARD LIMITED AIR STRIKES ON SERB ARTILLERY IF THAT MAKES SENSE TODAY IT MADE MORE SENSE TWO YEARS AND TENS OF THOUSANDS OF CASUALTIES AGO BOMBING SERBIAN MILITARY BASES AT THE SOURCE OF AGGRESSION IN AND AROUND BELGRADE WOULD HAVE EVEN MORE IMPACT DRAWING LINES ALSO MEANS DRAWING THEM IN THE RIGHT PLACE THESE ARE HEADLINE HOT SPOTS BUT THE LARGER THREATS ARE ONES WESTERN LEADERS AVOID DISCUSSING HIGH ON THAT LIST IS RUSSIA'S INTENT TO REABSORB WHAT IT EUPHEMISTICALLY CALLS THE NEAR ABROAD THE COMPONENT PARTS OF THE OLD SOVIET EMPIRE FROM THE BALTICS TO CENTRAL ASIA THAT NOW EXIST AS FRAGILE INDEPENDENT STATES WHILE WESTERN SECURITY EXPERTS IN MUNICH DUCK DISCUSSING THIS THREAT THE RUSSIANS TALK OPENLY AND FERVENTLY LISTEN TO RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WIDELY CONSIDERED A LIBERAL WITHIN THE RUSSIAN LEADERSHIP RUSSIA HE SAID RECENTLY INTENDS TO TOUGHLY UPHOLD THE INTERESTS OF THE RUSSIANSPEAKING POPULATIONS AND STAND UP FOR THEM WHEREVER THAT MIGHT BE SINCE SOME 25 MILLION RUSSIANS LIVE OUTSIDE RUSSIA'S BORDERS IN PLACES LIKE UKRAINE AND THE BALTIC STATES MR KOZYREV'S LOGIC IS PRECISELY THE SAME AS THAT APPLIED BY THE SERBS TO GREATER SERBIAN INTERESTS IN THE FORMER YUGOSLAVIA BUT THE CONSEQUENCES FOR THE WEST ARE LIKELY TO BE FAR GREATER AS RUSSIANS RECONSTRUCT GREATER RUSSIA THE PROCESS ALREADY IS BEGINNING WITH MOSCOW ENCOURAGING CRIMEA TO BREAK FROM UKRAINE AND RETURN TO THE MOTHERLAND MEANWHILE BILL CLINTON OFFERS MEANINGLESS SECURITY ASSURANCES TO UKRAINIANS TO EASE THEIR FEARS OF RUSSIA AND DESTROY THEIR NUCLEAR WEAPONS WITHIN SIX WEEKS OF PRESIDENTIAL ASSURANCES IN KIEV DEFENSE SECRETARY WILLIAM PERRY IN MUNICH SAID THEY DID NOT INCLUDE A GUARANTEE OF SECURITY BY THE US GOVERNMENT INDEED THE ADMINISTRATION'S PARTNERSHIP FOR PEACE EXPRESSLY IN THE WORDS OF MR PERRY AVOIDS DRAWING NEW SECURITY LINES IN EUROPE WHEN OUR GOAL IS TO INTEGRATE RUSSIA INTO EUROPE BUT RUSSIA'S STATED OBJECTIVE CONTRADICTS THIS GOAL RUSSIA SEEKS TO EMBRACE THE OLD SOVIET EMPIRE AND INSIST THAT MUCH OF FORMER EASTERN EUROPE REMAIN A NEUTRALIST BUFFER ZONE WHEN NATO RECENTLY FACED AN OPPORTUNITY TO EXTEND MEMBERSHIP TO FORMER SOVIET SATELLITES SUCH AS POLAND HUNGARY AND THE CZECH REPUBLIC IT SHRANK FROM DOING SO FOR FEAR OF UPSETTING RUSSIA ALL OF THIS LEADS TO THE OBVIOUS NEW LINES ARE BEING DRAWN ACROSS THE FACE OF EUROPE BUT BY RUSSIA AT ITS PLEASURE AND WITH TIMID ACQUIESCENCE BY THE US AND WESTERN EUROPE THE MAJOR SECURITY THREAT TO EUROPE IN THE NEAR TERM WILL BE RUSSIA'S ATTEMPTS TO REABSORB UKRAINE WHICH COULD PROVE EVEN MORE VIOLENT AND DIVISIVE THAN YUGOSLAVIA'S CONFLICT THE ISSUE IS WHETHER UKRAINE IS OUR BUFFER AGAINST RUSSIA OR RUSSIA'S BUFFER AGAINST THE WEST SAYS A WESTERN DEFENSE MINISTER PRIVATELY THE WEST MUST HAVE A COMMON POLICY INSTEAD IT HAS WISHFUL THINKING I'M SURE YELTSIN WILL NOT LISTEN TO THOSE WHO CALL FOR A NATIONALISTIC OR IMPERIALISTIC POLICY GERMANY'S CHANCELLOR HELMUT KOHL SAID HERE MUCH THE SAME SYNDROME IS VISIBLE IN ASIA WHERE A RESURGENT CHINA FLEXES ITS MUSCLES AT INCREASINGLY FEARFUL NEIGHBORS CHINA UNLIKE RUSSIA ISN'T AN OVERTLY IMPERIAL POWER IT'S ALSO MUCH MORE SUBTLE WITH THE EXCEPTION OF HONG KONG WHICH CHINA REABSORBS IN 1997 BEIJING ISN'T SEEKING TO GOBBLE TERRITORY BUT TO INTIMIDATE NEIGHBORS INTO ACCEPTING CHINA'S PRIMACY AS ASIA'S SUPERPOWER CHINA'S MILITARY SPENDING IS GROWING AT A TIME WHEN OTHER MAJOR POWERS ARE SLOWING DEFENSE EXPENDITURES CHINA IS ACTIVELY EXPORTING MISSILES AND OTHER TECHNOLOGIES TO ROGUE NATIONS LIKE IRAN THERE IS ALSO ITS FAILURE TO EMPLOY ITS INFLUENCE TO STOP PYONGYANG'S NUCLEAR PROGRAM AS EVER THE GREATER DANGER LIES NOT IN DRAWING LINES BUT IN PRETENDING THAT DIFFERENCES IN NATIONAL INTERESTS DO NOT EXIST THE HISTORY OF AMERICAN FOREIGN POLICY IN THIS CENTURY HAS BEEN ONE OF REPEATEDLY FAILING TO LEARN THIS LESSON THE TIME TO DRAW LINES IS BEFORE NORTH KOREA THREATENS TO USE A NUCLEAR WEAPON OR BEFORE THE RUSSIANS ANNEX UKRAINE NOT AFTER TIME IS RARELY ON THE SIDE OF FREEDOM AND STABILITY THE WORLD WOULDN'T BE A SAFER PLACE IF GEORGE BUSH HAD ACQUIESCED IN IRAQ'S ANNEXATION OF KUWAIT GERMANY WOULDN'T BE UNITED TODAY IF HELMUT KOHL AND GEORGE BUSH HAD TEMPORIZED OVER REUNIFICATION IN THE FACE OF SOVIET DISPLEASURE AND SADLY EASTERN EUROPE AND THE BALTIC STATES MAY NOT REMAIN TRULY FREE AND INDEPENDENT NATIONS BECAUSE THE WEST CRAVENLY TEMPORIZES TODAY ABOUT THEIR STATUS IN MERE ANTICIPATION OF RUSSIAN DISPLEASURE THE FIRST COLD WAR DIDN'T END BECAUSE TIME WAS ON OUR SIDE IT CONCLUDED BECAUSE THE WEST DREW ENOUGH LINES AT ENOUGH TIMES AND IN ENOUGH PLACES WE DEMONSTRATED THE HISTORIC TRUTH THAT WHEN IMPERIALISM ISN'T PERMITTED TO EXPAND IT INEVITABLY CONTRACTS BETTER TO DRAW CLEAR LINES NOW THAN TO HAVE TO CONTEST THEM LATER MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES & CO 9402170038 940217 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION APPLIED DIGITAL ACCESS INC AN INITIAL OFFERING OF 26 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND HAMBRECHT & QUIST INC BANK OF CHINA AN OFFERING OF AN AGGREGATE PRINCIPAL AMOUNT OF 500 MILLION OF ITS DEBT SECURITIES CHARTWELL RE CORP AN OFFERING OF UP TO 75 MILLION OF SENIOR NOTES VIA SALOMON BROTHERS INC AND SG WARBURG & CO PALMER WIRELESS INC AN INITIAL OFFERING OF FIVE MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC RAYMOND JAMES & ASSOCIATES INC AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS TRANSTEXAS GAS CORP AN INTIAL OFFERING OF FIVE MILLION SHARES OF COMMON STOCK VIA JEFFERIES & CO XENOVA GROUP PLC AN INITIAL OFFERING OF THREE MILLION AMERICAN DEPOSITORY SHARES REPRESENTING THREE MILLION ORDINARY SHARES VIA PAINEWEBBER INC LEHMAN BROTHERS AND COWEN & CO 9402170037 940217 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS PLEDGED FOR THE FIRST TIME TO MEET A NATO DEADLINE THE SERB FORCES BESIEGING SARAJEVO SAID THEY WOULD REMOVE THEIR HEAVY GUNS OR PUT THEM UNDER UN CONTROL BY THE DEADLINE THIS SUNDAY UN COMMANDERS SAID THEY SAID THE OUTGUNNED MUSLIMLED BOSNIAN ARMY DEFENDING SARAJEVO ALSO PROMISED TO TURN IN ITS HEAVY WEAPONS HOWEVER THERE WERE FEW OUTWARD SIGNS OF COMPLIANCE AND UN MILITARY OFFICIALS CONFIRMED THAT NO NEW WEAPONS HAD BEEN PLACED UNDER THEIR CONTROL SINCE LAST WEEKEND A WORKER WAS KILLED BY SNIPER FIRE IN DOWNTOWN SARAJEVO THE FIRST CIVILIAN TO BE SLAIN IN THE CAPITAL SINCE A CEASEFIRE BEGAN ONE WEEK AGO A RECOMMENDATION AGAIN WAS MADE BY A KEY US CHAMBER OF COMMERCE PANEL THAT THE ORGANIZATION SHOULD ENDORSE REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE THE ACTION CAME LESS THAN TWO WEEKS AFTER A CHAMBER OFFICIAL WITHDREW COPIES OF TESTIMONY ENDORSING THE EMPLOYER MANDATE CLINTON SOUGHT SUPPORT FOR HIS HEALTHCARE PLAN FROM MEMBERS OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAYING THE TIME HAS COME TO BE COUNTED TO STAND WITH US SPEAKING TO SENIOR CITIZENS IN EDISON NJ THE PRESIDENT SAID HIS PLAN WOULD BOOST THEIR BENEFITS WHILE SOME RIVAL PLANS WOULD CUT THEM INSURANCE COMPANIES CAN BE ARBITRARY AND CAPRICIOUS WHEN THEY DENY COVERAGE OF A COSTLY THERAPY FOR BREAST CANCER PATIENTS TWO MEDICAL RESEARCHERS CHARGED EVEN THOUGH THE COMPANIES APPROVE 77 OF INITIAL REQUESTS FOR COVERAGE SEVERAL INSURERS DISPUTED THE RESEARCHERS' CLAIM THAT THE DECISIONS ARE ARBITRARY ARMED MEXICAN REBELS FREED A FORMER GOVERNOR WHO HAD BEEN HELD HOSTAGE SINCE JAN 2 THE RELEASE OF ABSALOM CASTELLANOS DOMINGUEZ SEIZED AT THE START OF AN UPRISING IN THE SOUTHERN STATE OF CHIAPAS WAS VIEWED AS A POSSIBLE PRELUDE TO PEACE TALKS WITH THE GOVERNMENT THE REBELS HAD ACCUSED HIM OF RIGHTS VIOLATIONS AND CORRUPTION THE STATE DEPARTMENT IMPLORED EXILED HAITIAN PRESIDENT ARISTIDE TO MEET IN WASHINGTON WITH PARLIAMENTARIANS WHO ARE PROMOTING A PLAN TO END A POLITICAL IMPASSE AND RESTORE HIM TO OFFICE ARISTIDE ALREADY HAS DISMISSED THE PROPOSAL AS IRRESPONSIBLE AND HAS DECLINED TO MEET WITH THE HAITIAN LAWMAKERS SINCE LAST FRIDAY TWO OF ZHIRINOVSKY'S ALLIES DEFECTED FROM HIS PARLIAMENTARY FACTION CITING IDEOLOGICAL DIFFERENCES WITH THE ULTRANATIONALIST RUSSIAN LEADER ONE OF THE DEFECTORS ACCUSED ZHIRINOVSKY OF EXTREMISM AND SAID THE LIBERAL DEMOCRATIC PARTY LEADER WAS USURPING POWER AND ALIENATING OTHER COUNTRIES GREECE ANNOUNCED IT WOULD STOP ALLOWING THE LANDLOCKED EXYUGOSLAV REPUBLIC OF MACEDONIA TO SHIP GOODS THROUGH THE GREEK PORT OF SALONIKA ANGERED BY WESTERN RECOGNITION OF MACEDONIA GREECE ALSO SAID IT WAS CLOSING ITS CONSULATE THERE THE GREEKS CLAIM MACEDONIA WANTS TO ANNEX LAND IN A NORTHERN PROVINCE OF THE SAME NAME MANDELA OFFERED CONCESSIONS TO WHITE AND BLACK CONSERVATIVES WHO WANT REGIONAL AUTONOMY IN SOUTH AFRICA SAYING HIS AFRICAN NATIONAL CONGRESS WANTS TO AVERT CIVIL WAR ALTHOUGH THERE WASN'T ANY IMMEDIATE REACTION FROM THE CONSERVATIVES HIS GESTURE DIDN'T MEET THEIR DEMAND FOR INDEPENDENT HOMELANDS CLINTON'S CRIME BILL WILL REQUIRE LARGE ADDITIONAL FEDERAL EXPENDITURES THAT WON'T BEGIN TO BE COVERED BY HIS PROPOSED 21 INCREASE IN ANTICRIME EXPENDITURES ACCORDING TO A POLICY ANALYSIS GROUP IT'S A TIME BOMB IN THE BUDGET AN OFFICIAL WITH THE WASHINGTONBASED URBAN INSTITUTE SAID A KATYUSHA ROCKET WAS FIRED FROM LEBANON AND HIT NORTHERN ISRAEL DAMAGING A FACTORY THE ISRAELI ARMY SAID THERE WERE NO REPORTS OF INJURIES IT WAS THE FIRST TIME A KATYUSHA ROCKET HAD STRUCK ISRAEL IN SIX MONTHS SEPARATELY ISRAELI SOLDIERS SHOT AND KILLED A PALESTINIAN DURING A STONETHROWING INCIDENT IN THE WEST BANK DOCTORS IN DETROIT HAVE USED TINY NEEDLES AND A MINIATURE CAMERA TO SAVE A FETUS THAT WAS ENDANGERED BY HIS MALFORMED TWIN WITHOUT CUTTING OPEN THE MOTHER'S WOMB SUCH SURGERY REPRESENTS A NEW FRONTIER IN FETAL MEDICINE AND COULD PROVIDE A NEW WEAPON AGAINST A VARIETY OF ABNORMALITIES THE DOCTORS ANNOUNCED 9402170035 940217 NEW EMIGRANTS FOR SOME US BLACKS SOUTH AFRICA BECOMES LAND OF OPPORTUNITY THEY CAN FIND GOOD JOBS AND BUY LAVISH HOUSES AS APARTHEID PAST FADES CAPITALIZING ON CHICKEN RUN' BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA LESS THAN TWO YEARS AFTER ARRIVING HERE FROM THE US LEYLAND HAZLEWOOD'S MANAGEMENTCONSULTING BUSINESS IS DOING HIGHVISIBILITY DEALS THAT COULD LIFT HIS COMPANY DIMPEX INC OUT OF OBSCURITY RECENTLY DIMPEX STRUCTURED AND ARRANGED THE FINANCING FOR A 3 MILLION LICENSING JOINT VENTURE BETWEEN NIKE INC AND A GROUP OF SOUTH AFRICAN BUSINESSMEN IT WASN'T DIMPEX'S LARGEST TRANSACTION BUT MR HAZLEWOOD BELIEVES THAT DOING BUSINESS WITH NIKE WILL HELP OPEN DOORS NOT ONLY HERE BUT IN OTHER EMERGING COUNTRIES AS WELL THERE IS CURRENTLY A WINDOW OF OPPORTUNITY FOR COMPANIES LIKE MINE TO BE INVOLVED IN REALLY IMPORTANT TRANSACTIONS SAYS THE FORMER NEW YORKER WHO IS BLACK IN THE US WHERE BLACKS STILL FIND IT DIFFICULT TO PENETRATE THE WHITEDOMINATED BUSINESS WORLD I PROBABLY WOULDN'T BE INVOLVED IN A DEAL LIKE THIS MR HAZLEWOOD SAYS BUT HERE IN SOUTH AFRICA I HAVE A SHOT SUCH SENTIMENTS EXPLAIN WHY SOUTH AFRICA STILL THE WORLD'S LEADING SYMBOL OF BLACK OPPRESSION IS FAST GAINING A REPUTATION AMONG BLACK AMERICANS AS THE LAND OF ECONOMIC OPPORTUNITY THE SOUTH AFRICAN CONSULATE IN NEW YORK WHICH HANDLES ALL IMMIGRATION APPLICATIONS FROM AMERICANS SAYS IT IS CURRENTLY PROCESSING A VERY SIGNIFICANT NUMBER OF APPLICATIONS FROM BLACK AMERICANS WHO WANT TO RELOCATE ALTHOUGH THE CONSULATE SAYS IT DOESN'T KEEP EXACT FIGURES IT NOTES THAT MOST OF THOSE MOVING ARE SKILLED PROFESSIONALS BUSINESS EXECUTIVES AND ACADEMICS MANY BLACK AMERICANS COMPARE SOUTH AFRICA TO THE US AFTER WORLD WAR II WHEN AMERICA WAS ON THE VERGE OF AN ECONOMIC AND POPULATION BOOM IT WAS A TIME WHEN FORTUNES AND EMPIRES COULD BE BUILT FROM RELATIVELY SMALL STAKES YOU GROW UP HEARING STORIES OF PEOPLE WHO STARTED BUSINESSES 30 YEARS AGO WITH ONLY 2000 YOU CAN'T DO THAT TODAY IN THE US BUT YOU CAN DO IT HERE SAYS GAYLA COOK WHO MOVED TO SOUTH AFRICA TWO YEARS AGO AND RUNS A MEDIACONSULTING FIRM IN MANY CASES THE NEW ARRIVALS ARE FILLING POSITIONS LEFT VACANT BY THE LARGE NUMBER OF WHITES WHO ARE FLEEING SOUTH AFRICA OUT OF FEAR THAT THE COUNTRY'S HISTORIC TRANSITION TO DEMOCRACY FROM APARTHEID WILL BRING AN ESCALATION OF RACIAL VIOLENCE AND POSSIBLY EVEN A CIVIL WAR LOCALS JOKINGLY REFER TO THIS EXODUS AS THE CHICKEN RUN BUT IT COULD DEVELOP INTO A SERIOUS TALENT DRAIN THAT IS WHY THE OFFICIAL WELCOME MAT IS OUT AMERICANS HELPED IN THE STRUGGLE AGAINST APARTHEID SO WE'D RATHER SEE THEM COME HERE AND FILL CERTAIN HIGHSKILL JOBS THAN PEOPLE FROM COUNTRIES THAT DIDN'T SUPPORT US SAID ALAN MUKOKI A LENDING OFFICER AT NEDCOR A UNIT OF JOHANNESBURG'S NEDBANK GROUP LTD MOST OF THE BLACK AMERICANS WHO ALREADY HAVE MADE THE MOVE SAY THEY TRULY ENJOY AND INDEED CHERISH THEIR NEW LIVES BUT THEY ALSO ADMIT TO UNDERCURRENTS OF DISCOMFORT AS AMERICANS THEY ARE GENERALLY TREATED BETTER THAN BLACK SOUTH AFRICANS AND ALMOST ALWAYS ARE SUBJECT TO FAR LESS DISCRIMINATION THE AMERICANS FIND THIS ALL TOO EASY TO ACCEPT WHICH GENERATES FEELINGS OF GUILT MANY BLACK AMERICANS ALSO FEEL EMBARRASSED THAT THEY ARE EXPERIENCING SOUTH AFRICA'S POLITICAL TRANSITION AT A LEVEL OF AFFLUENCE THAT IS UNKNOWN TO THE LARGE MAJORITY OF BLACK SOUTH AFRICANS IN FACT MOVING TO SOUTH AFRICA BOOSTED THE STANDARD OF LIVING FOR MANY FAMILIES HOUSES IN SUBURBAN JOHANNESBURG MANY WITH LAVISH AMENITIES ARE FAR LESS EXPENSIVE THAN SIMILAR PROPERTY IN MAJOR US CITIES SOUTH AFRICA IS ONE OF THE WORLD'S MOST BEAUTIFUL COUNTRIES WITH PICTURESQUE VINEYARDS GORGEOUS SEASHORES AND BREATHTAKING RURAL VISTAS THE HIGHWAYS ARE SMOOTH AND THE WEATHER IS MILD SUCH PHYSICAL COMFORTS HELP MAKE THE MOVE FROM THE US A RELATIVELY EASY ONE FOR MOST AMERICANS IT'S LIKE NORTHERN CALIFORNIA WITHOUT THE EARTHQUAKES SAYS MACKEY MCLEOD A FORMER BOSTONIAN WHO NOW IS AN EXECUTIVE WITH LOTUS CORP'S SOUTH AFRICA UNIT SOUTH AFRICA ALSO RESEMBLES THE US DEMOGRAPHICALLY IN THAT IT IS A DIVERSE MULTIRACIAL MULTIETHNIC SOCIETY AMERICAN SITCOMS AND MOVIES DOMINATE THE AIRWAVES AND BILLBOARDS ADVERTISE THE LATEST RECORDINGS OF POP STARS SUCH AS DIANA ROSS AND MICHAEL BOLTON ON THE EVENING TELEVISION NEWS ONE CAN FOLLOW THE LATEST TWISTS AND TURNS OF THE HARDINGKERRIGAN ICE FOLLIES SO FOR BETTER AND WORSE BLACK AMERICANS TYPICALLY FEEL COMFORTABLE WHEN THEY ARRIVE IN SOUTH AFRICA I FELT AN IMMEDIATE BOND TO THE COUNTRY SAYS BARRON H HARVEY A BUSINESS PROFESSOR AT HOWARD UNIVERSITY IN WASHINGTON WHO RECENTLY WON A CONTRACT FROM THE AGENCY FOR INTERNATIONAL DEVELOPMENT TO STUDY SOUTH AFRICAN VENTURE CAPITAL THE PEOPLE HAVE A CANDO ATTITUDE THAT I HAVE NOT SEEN AMONG BLACKS SINCE MY DAYS IN COLLEGE IN THE 1960S NOT EVERYONE HERE IS THRILLED TO SEE THESE CANDO NEWCOMERS CONSERVATIVE WHITE AFRIKANERS ESPECIALLY VIEW THEM AS POTENTIAL TROUBLEMAKERS OUT TO TURN THEIR COUNTRY OF 45 MILLION INTO A SMALL VERSION OF THE US COMPLETE WITH AFFIRMATIVEACTION PROGRAMS HIGH EDUCATIONAL SPENDING LOWINCOME HOUSING AND MINIMUMWAGE LAWS THAT AFFECT ALL WORKERS KOOS FERREIRA AN EXECUTIVE AT SIMBA GROUP LTD A UNIT OF SOUTH AFRICA'S FOODCORP GROUP A BIG FOOD COMPANY SAYS BLACK AMERICANS ARE TOO PUSHY AND HAVE A LOT OF FANCY IDEAS ABOUT HOW TO BRING RACIAL EQUALITY TO SOUTH AFRICA HE COMPLAINS THAT THEY JUST DON'T UNDERSTAND WHAT IT IS LIKE HERE IT WASN'T TOO LONG AGO THAT MOST BLACK AMERICANS DISLIKED SOUTH AFRICA WITH EQUAL SEVERITY DUE LARGELY TO THE COUNTRY'S INFAMOUS SYSTEM OF APARTHEID THIS RIGID POLICY OF RACIAL SEGREGATION INTRODUCED IN 1947 FORCED WHITES BLACKS ASIANS AND THE MIXEDRACE COLOREDS INTO DEFINED AREAS OF GEOGRAPHY AND CULTURE INTERNATIONAL CONDEMNATION OF APARTHEID BEGAN ALMOST IMMEDIATELY BUT AMERICANS DIDN'T GET ACTIVELY INVOLVED IN THE ANTIAPARTHEID ACTIVITIES UNTIL THE 1960S WHEN STUDENT ACTIVISTS PROTESTED THE POLICY BY 1989 AT THE PEAK OF THE US ANTIAPARTHEID MOVEMENT HUNDREDS OF AMERICAN CORPORATIONS WERE UNDER PRESSURE TO SEVER THEIR SOUTH AFRICAN BUSINESS TIES WASHINGTON PLACED ECONOMIC SANCTIONS AGAINST THE COUNTRY AND PERHAPS MOST DEVASTATING PSYCHOLOGICALLY SOUTH AFRICAN ATHLETES WEREN'T WELCOME AT INTERNATIONAL SPORTING EVENTS APARTHEID BEGAN TO CRUMBLE FOUR YEARS AGO WHEN NELSON MANDELA LEADER OF THE ONCEBANNED AFRICAN NATIONAL CONGRESS WAS RELEASED FROM PRISON AFTER 27 YEARS NOW THAT SOUTH AFRICA IS ON THE ROAD TO BECOMING A MULTIRACIAL DEMOCRACY WITH FREE ELECTIONS SCHEDULED FOR APRIL AND SANCTIONS HAVING BEEN LIFTED THE ECONOMY HAS STARTED TO GROW AGAIN PROFITS AT DIAMONDINDUSTRY LEADER DEBEERS CONSOLIDATED MINES LTD AND GOLD PRODUCER ANGLO AMERICAN CORP SOUTH AFRICA'S TWO LARGEST CORPORATIONS HAVE RISEN FOR THE FIRST TIME IN SEVERAL YEARS DOWNTOWN JOHANNESBURG IS CROWDED WITH SHOPPERS AND ENTREPRENEURSHIP IS THE HOTTEST TOPIC AMONG THE EMERGING BLACK MIDDLE CLASS STILL THE NEW ARRIVALS ARE LIKELY TO FIND SOME DIFFICULT ADJUSTMENTS MIXED IN WITH THE ECONOMIC OPPORTUNITIES MR MCLEOD THE LOTUS EXECUTIVE SAYS THE UNDERCURRENT OF FEAR RELATED TO CRIME AND THE REMOTE POSSIBILITY OF A CIVIL WAR HAS TURNED MANY SOUTH AFRICANS INTO SCARED SHUTINS SOME PEOPLE HAVE HOUSES FILLED WITH PANIC BUTTONS EMERGENCY ALARMS AND REMOTECONTROL DEVICES THEY CAN CARRY WITH THEM FROM ROOM TO ROOM JUST IN CASE SOMETHING HAPPENS HE SAYS IF THEY PUSH THE BUTTON WITHIN TWO MINUTES ONE OF THE PRIVATE ARMED SECURITY SERVICES WILL COME TO YOUR HOUSE THE BACKDROP OF LIVING HERE IS ONE OF CONCERN FOR PERSONAL SECURITY YOU NEVER REALLY GO TO SLEEP YOU ALWAYS HAVE ONE EYE OPEN FAMILIES OFTEN BEAR THE BRUNT OF THE CULTURAL CHANGES MS COOK THE MEDIA CONSULTANT RECALLS FEELING HUMILIATED WHEN SHE WAS REQUIRED TO OBTAIN WRITTEN PERMISSION FROM WHITE NEIGHBORS BEFORE SHE COULD MOVE INTO HONEY DEW A SECTION OF RANDBURG NEAR JOHANNESBURG THE GROUP AREAS ACT HAS SINCE BEEN REPEALED TO MAKE MATTERS WORSE SHE THEN DISCOVERED THAT HER CHILDREN WOULD BE THE ONLY BLACKS IN THE NEIGHBORHOOD SCHOOL RATHER THAN SUBJECT THEM TO WHAT SHE SUSPECTED WOULD BE RIDICULE FROM CLASSMATES SHE INSTEAD ENROLLED THEM IN A PRIVATE SCHOOL IN THE CITY AN HOUR'S DRIVE AWAY NEVERTHELESS HER 14YEAROLD SON WAS MISERABLE HE MISSED BASKETBALL FOOTBALL AND MCDONALD'S SHE SAYS HE HAD A VERY DIFFICULT TIME ADJUSTING SO DIFFICULT IN FACT THAT SHE HAS SINCE SENT HIM BACK TO THE US TO LIVE WITH HER BROTHER STILL AMERICAN BLACKS WHO YEARN FOR BETTER CAREER OPPORTUNITIES FIND SUCCESS STORIES LIKE THAT OF OPHELIA JATTA COMPELLING ONE OF THE EARLIEST AFRICANAMERICANS TO EMIGRATE TO JOHANNESBURG MS JATTA IS A 42YEAROLD NATIVE OF OKLAHOMA CITY WHO DEVELOPED AN INTEREST IN MINING WHILE WORKING FOR KERRMCGEE OIL CO A UNIT OF KERRMCGEE CORP IN 1987 TWO YEARS AFTER GRADUATING FROM THE UNIVERSITY OF OKLAHOMA LAW SCHOOL MS JATTA SOLD EVERYTHING SHE OWNED TO MOVE TO AFRICA AFTER VISITING MANY COUNTRIES MS JATTA DECIDED TO MAKE SOUTH AFRICA HER HOME EVEN THOUGH SHE HAD NO CONTACTS NO JOB AND NO PLACE TO LIVE I COULD TELL RIGHT AWAY THAT SOUTH AFRICA WOULD BE A FABULOUS COUNTRY ONCE THEY SOLVED THE RACIAL AND POLITICAL PROBLEMS SAYS MS JATTA I KNEW THAT IF I COULD GET THERE BEFORE EVERYONE ELSE SHOWED UP I WOULD BE SITTING PRETTY ONCE THINGS BEGAN TO OPEN UP WITHIN TWO WEEKS MS JATTA HAD LANDED A JOB AS A LABORRELATIONS SPECIALIST AT JOHANNESBURG CONSOLIDATED INVESTMENT CO ONE OF SOUTH AFRICA'S TOP MINING COMPANIES AND THE BIGGEST PLATINUM PRODUCER IN THE WORLD LIKE OTHER MANAGERS IN SOUTH AFRICA WHO RECEIVE AMONG THE BEST PERKS OF EXECUTIVES ANYWHERE IN THE WORLD SHE WAS GIVEN A COMPANY CAR AND FINANCING TO PURCHASE A HOME BLACKS WITH SOLID SKILLS CAN GO MUCH FURTHER HERE A LOT FASTER THAN IN THE US BECAUSE THERE IS LESS COMPETITION FOR HIGHLEVEL JOBS SAYS MS JATTA WHO REMAINS A MEMBER OF THE US REPUBLICAN PARTY AND WHO TOOK A ONEYEAR LEAVE FROM SOUTH AFRICA IN 1988 TO WORK FOR FORMER PRESIDENT BUSH'S ELECTION CAMPAIGN MS JATTA RECENTLY FORMED HER OWN COMPANY JATTA INTERNATIONAL INVESTMENT CO WHICH PLANS TO PROVIDE MORTGAGES TO SOUTH AFRICA'S BLACK MIDDLE CLASS SHE ALSO HAS HER OWN RADIO TALK SHOW AND FREQUENTLY APPEARS ON TV TO DISCUSS US FOREIGN POLICY TOWARD AFRICA SOME BLACK AMERICANS WHO MOVED TO SOUTH AFRICA MAINLY FOR LIFESTYLE REASONS ARE SURPRISED TO DISCOVER THEIR CAREERS BLOSSOMING AS WELL ONE OF THEM IS KIMBERLEIGH STARK A 29YEAROLD ACTRESS AND RADIO PERSONALITY WHO WAS BORN IN SAN DIEGO IN THE PAST YEAR SHE HAS WON ROLES IN SIX MOVIES ALL PRODUCED BY US FILM COMPANIES AND STARRING SUCH ACTORS AS ROBERT MITCHUM AND KRIS KRISTOFFERSON THERE ARE 10000 WOMEN RUNNING AROUND HOLLYWOOD WHO LOOK JUST LIKE ME SAYS MS STARK WHO HAS HONEYCOLORED SKIN AND LONG CURLY HAIR HERE MY LOOK IS UNIQUE HER LOOK IS ALSO AMBIGUOUS AT LEAST IN A COUNTRY THAT PLACES LIGHTERSKINNED AND DARKERSKINNED BLACKS INTO SEPARATE RACIAL CATEGORIES THAT DISTINCTION SPARKED A CONTROVERSY WHEN SHE PLAYED THE PART OF A BLACK WOMAN BLACK NEWSPAPERS WERE OUTRAGED AND ADMONISHED THE EUROPEAN FILM COMPANY FOR HIRING A COLORED TO PLAY THE PART OF A BLACK IN ANY CASE MS STARK SAYS SHE WOULD BE HAPPY IN SOUTH AFRICA EVEN WITHOUT HER CAREER SHE THINKS THE WAY OF LIFE HERE IS QUIETER AND SIMPLER THAN IN THE US SHE LIVES ON A 10ACRE FARM WITH HER AFRIKANER HUSBAND TWO CHILDREN TWO DOGS AND SEVERAL CHICKENS SHE MET HER HUSBAND A CAMERAMAN DURING THE FILMING OF A MOVIE SEVERAL YEARS AGO THEIR INTERRACIAL MARRIAGE THEN MADE IT HARD TO BUY A HOME IN THE CITY AND ITS SUBURBS SO THEY LIVE ABOUT 35 MINUTES FROM JOHANNESBURG WHERE LANDACT PROVISIONS DIDN'T APPLY EVEN THOUGH HER HOME HAS BEEN BURGLARIZED THREE TIMES IN THE PAST FEW YEARS SHE FINDS SOUTH AFRICA'S CRIME AND VIOLENCE LESS UNSETTLING THAN AMERICAN STREET CRIME MY KIDS ARE GROWING UP PLAYING IN A TREE HOUSE IN LOS ANGELES THEY'D PROBABLY BE DODGING BULLETS SAYS MS STARK SHE RECENTLY VISITED LA AFTER A FIVEYEAR ABSENCE AND GOT THE SHOCK OF MY LIFE FROM WHAT SHE SAW AS THE CITY'S DETERIORATION SOUTH AFRICA HAS ITS PROBLEMS BUT IT'S NOT AS BAD AS THE US THE QUALITY OF LIFE HERE IS MUCH BETTER 9402170034 940217 MARKETING & MEDIA DIANE SAWYER TO REMAIN AT ABC ENDING BIDDING NEW YORK DIANE SAWYER RENEWED HER CONTRACT WITH ABC NEWS A UNIT OF CAPITAL CITIES/ABC INC ENDING A FOURNETWORK BIDDING WAR FOR THE ANCHOR'S SERVICES AS PART OF THE MULTIYEAR DEAL BY NEXT JANUARY THE NETWORK COULD HAVE NEWSMAGAZINES AIRING AT 10 PM ON AN UNPRECEDENTED FOUR NIGHTS OF THE WEEK PUSHING OUT THE DRAMA FARE THAT TYPICALLY AIRS AT THAT HOUR THREE OF THESE NEWSMAGAZINES WOULD FEATURE MS SAWYER EITHER AS A COANCHOR OR CONTRIBUTOR THE NETWORK DECLINED TO SAY HOW MUCH IT WILL PAY MS SAWYER WHO PREVIOUSLY EARNED AN ESTIMATED 3 MILLION A YEAR BUT WAS REPORTED TO HAVE BEEN OFFERED AS MUCH AS 10 MILLION BY AT LEAST ONE OTHER NETWORK HER COLLEAGUE PETER JENNINGS THE ANCHOR OF WORLD NEWS TONIGHT EARNS 7 MILLION A YEAR MS SAWYER WILL CONTINUE TO COANCHOR THE NEWSMAGAZINE PRIMETIME LIVE WHICH AIRS THURSDAYS AT 10 PM AND SHE WILL COANCHOR THE NEW SHOW TURNING POINT WHICH DEBUTS IN MARCH AT 10 PM WEDNESDAYS MS SAWYER WILL ALSO BECOME A CONTRIBUTOR TO DAY ONE WHICH WILL MOVE TO MONDAYS AT 10 PM NEXT JANUARY FROM ITS CURRENT 8 PM MONDAY SLOT ABC SAID YESTERDAY THE NETWORK'S FOURTH 10 PM NEWSMAGAZINE IS 20/20 WHICH AIRS FRIDAYS ON TUESDAYS AT THAT HOUR ABC AIRS THE SUCCESSFUL POLICE DRAMA NYPD BLUE ABC'S 199495 SCHEDULE WILL BE ANNOUNCED IN MAY 9402170033 940217 REVIEW OF WORKER RIGHTS IN INDONESIA IS SUSPENDED WASHINGTON THE CLINTON ADMINISTRATION SUSPENDED ITS FORMAL INVESTIGATION OF INDONESIA'S WORKERRIGHTS POLICIES FOR SIX MONTHS SAYING THE MOVE WILL ENABLE THE COUNTRY TO ENACT RECENTLY ADOPTED LABOR REGULATIONS THE ACTION AT LEAST FOR NOW WILL EASE POLITICAL TENSIONS BETWEEN WASHINGTON AND JAKARTA OVER THE ISSUE OF WORKER RIGHTS WHICH IS A MAIN CONDITION FOR US EXTENSION OF DUTYFREE STATUS FOR INDONESIA UNDER THE GENERALIZED SYSTEM OF PREFERENCES THE GSP IS A PROGRAM DESIGNED TO BOOST DEVELOPING COUNTRIES' EXPORTS TO THE US THE IMPROVED RELATIONS ALSO GIVE THE CLINTON ADMINISTRATION AN IMPORTANT ALLY IN ASIA AS TRADE TENSIONS INCREASE BETWEEN THE US AND JAPAN US TRADE REPRESENTATIVE MICKEY KANTOR WHO HAS PRIMARY RESPONSIBILITY FOR PREFERENCE SYSTEM REVIEWS CAUTIONED THAT DESPITE THE MOVE TO HALT INTENSIVE REVIEW MORE NEEDS TO BE DONE BY INDONESIA TO ADDRESS US CONCERNS THE US IS CONCERNED ABOUT JAKARTA'S STRONG HAND IN LABOR CONTRACT NEGOTIATIONS MR KANTOR SAID THE US ISN'T YET PREPARED TO FORMALLY END ITS INVESTIGATION OF INDONESIA'S DUTYFREE STATUS ELIGIBILITY BUT HE SAID THAT IN SIX MONTHS HIS OFFICE WILL REVIEW THE ISSUE THE REVIEW WILL COME A FEW MONTHS BEFORE PRESIDENT CLINTON'S SCHEDULED VISIT TO INDONESIA FOR THE ANNUAL YEAREND SUMMIT OF LEADERS FROM THE ASIAPACIFIC ECONOMIC COOPERATION FORUM THE US ALSO ANNOUNCED YESTERDAY THAT KAZAKHSTAN AND ROMANIA HAVE BEEN GRANTED DUTYFREE STATUS 9402170032 940217 LAW LEGAL BEAT OHIO COURT SAYS VICTIMS CAN SUE GUN SHOWS AFTER FIREARM THEFT BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL GUN SHOW PROMOTERS CAN BE SUED BY SHOOTING VICTIMS IF THE FIREARMS INVOLVED WERE STOLEN BECAUSE OF POOR SECURITY AN OHIO STATE APPEAL COURT HAS RULED THE DECISION HANDED DOWN EARLIER THIS WEEK IS THE LATEST IN A SERIES OF COURT RULINGS STRESSING GUN MERCHANTS' RESPONSIBILITY TO ENSURE THAT FIREARMS DON'T FALL INTO THE WRONG HANDS MORE SIGNIFICANTLY SAID GUNCONTROL LEGAL EXPERTS THE REASONING IN THE DECISION COULD BE APPLIED TO GUN STORES AND EVEN TO PRIVATE INDIVIDUALS REQUIRING THEM TO TAKE STRONGER SECURITY MEASURES AGAINST GUN THEFT OR FACE LAWSUITS FROM SHOOTING VICTIMS TO MY KNOWLEDGE THIS IS THE FIRST COURT DECISION TO IMPOSE A DUTY ON GUN SELLERS TO USE ADEQUATE SECURITY TO PREVENT THEFT SAID DENNIS HENIGAN DIRECTOR OF LEGAL ACTION PROJECTS AT THE CENTER TO PREVENT HANDGUN VIOLENCE A WASHINGTON DC ADVOCACY GROUP THE IMPORTANT PRINCIPLE TO RECOGNIZE HERE IS THAT GUN DEALERS AND GUN OWNERS CAN NO LONGER DISCLAIM RESPONSIBILITY FOR VIOLENCE BECAUSE SOMEONE ELSE PULLED THE TRIGGER THEY MAY WELL BE HELD ACCOUNTABLE THE CASE INVOLVED FOUR TEENAGERS WHO ATTENDED A GUN SHOW IN THE CANTON OHIO CIVIC CENTER IN JANUARY 1992 THE BOYS STOLE FOUR HANDGUNS AND BOUGHT A BOX OF HIGHPOWERED BULLETS IN DESCRIBING THE THEFTS LATER ONE OF THE YOUTHS SAID THE GUNS WERE JUST LAYING AROUND AND WE JUST PICKED THEM UP AND WALKED AWAY WITH THEM ACCORDING TO THE OPINION BY THE OHIO FIFTH APPELLATE DISTRICT COURT IN CANTON THE BOYS STOLE A CAR THE NEXT DAY AND WENT ON A JOY RIDE THAT CULMINATED WITH THE SHOOTING OF TWO MEN LEAVING ONE PARALYZED FROM THE WAIST DOWN BOTH MEN SUED THE SHOW'S PROMOTER NILES GUN SHOW INC IN NILES OHIO FOR NEGLIGENCE AND WILLFUL AND WANTON MISCONDUCT OHIO LAW HOLDS THAT BUSINESS OWNERS CANNOT BE SUED OVER CRIMINAL ACTS COMMITTED ON THEIR PROPERTY BY THIRD PARTIES ACCORDING TO JAMES F MATHEWS AN ATTORNEY FOR NILES GUN HE NOTED THAT CRIME ISN'T CONSIDERED TO BE A FORESEEABLE ACT IN OHIO AND THAT IN THIS CASE THE SHOOTING DIDN'T EVEN OCCUR ON HIS CLIENT'S PREMISES WHILE THE THREEMEMBER APPEAL PANEL DID NOT EXPLICITLY OVERTURN THE LAW IT CHIPPED AWAY AT IT BY FINDING THAT A JURY SHOULD BE ALLOWED TO DECIDE WHETHER NILES GUN IS LIABLE IN VIEW OF TODAY'S SOCIETY REASONABLE MINDS CERTAINLY COULD CONCLUDE THAT UNSECURED FIREARMS PRESENT AN ATTRACTIVE IF NOT IRRESISTIBLE LURE TO CHILDREN THE APPEALS COURT WROTE THE DECISION WHICH ALSO EXPOSES NILES GUN TO POTENTIAL PUNITIVE DAMAGES OVERTURNED A LOWER COURT RULING DISMISSING THE CASE RALPH F DUBLIKAR ANOTHER ATTORNEY FOR NILES GUN SAID THE DECISION IGNORES A LARGE BODY OF OHIO LAW AND WOULD BE APPEALED TO THE STATE'S HIGH COURT THE NATIONAL RIFLE ASSOCIATION AND OTHER GUN GROUPS ARE MONITORING THE CASE HE ADDED AN NRA SPOKESMAN DECLINED COMMENT SAYING THE ORGANIZATION HADN'T YET SEEN THE DECISION ANOTHER GUN ORGANIZATION REACTED FAVORABLY TO THE RULING HOWEVER PEOPLE DO HAVE A DUTY OF CARE THE QUESTION IS WHAT'S REASONABLE SAID RICHARD FELDMAN EXECUTIVE DIRECTOR OF THE AMERICAN SHOOTING SPORTS COUNCIL AN INDUSTRY GROUP IN ATLANTA I DON'T SEE IT AS BEING ANY DIFFERENT FROM LEAVING KEYS IN YOUR CAR WITH THE MOTOR RUNNING IN A SCHOOL YARD ONE ISN'T TAKING REASONABLE PRECAUTIONS UNDER THAT SET OF CIRCUMSTANCES GUN SHOWS ARE EXTREMELY POPULAR IN THE US BUT DIFFICULT TO POLICE SAID MR HENIGAN OF THE CENTER TO PREVENT HANDGUN VIOLENCE IN ITS DECISION THE APPEALS COURT CITED STRONG CRITICISM FROM KENTUCKY GUN SHOW PROMOTER BILL GOODMAN IN A SWORN STATEMENT MR GOODMAN MAINTAINED THAT AT HIS SHOWS HE HAS SECURITY GUARDS MAKE SURE MINORS AREN'T ADMITTED WITHOUT ADULTS AND THAT GUNS ARE EITHER TIED DOWN OR SECURED IN DISPLAY CASES ALLAN SCHULMAN JR WHO REPRESENTED THE PLAINTIFFS IN THE CASE SAID THE RULING REFLECTS A GROWING WILLINGNESS BY COURTS TO HOLD GUN DEALERS RESPONSIBLE FOR ENSURING THAT MINORS CONVICTED FELONS AND FUGITIVES CAN'T GET GUNS THE RESOLUTION TRUST CORP SUED THE LAW FIRM OF STREICH LANG ALLEGING THAT THE PHOENIX FIRM WAS PART OF A SCHEME DESIGNED TO CONCEAL THE POOR FINANCIAL CONDITION OF THE NOWFAILED WESTERN SAVINGS & LOAN ASSOCIATION THE RTC AFTER TRYING FOR TWO YEARS TO REACH A SETTLEMENT WITH STREICH LANG FILED A LAWSUIT IN FEDERAL DISTRICT COURT IN PHOENIX SEEKING 400 MILLION IN COMPENSATION FOR LOSSES THAT THE AGENCY CONTENDS THE LAW FIRM WAS RESPONSIBLE FOR THE SUM WOULD BE PART OF 13 BILLION THAT THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY HAS BEEN SEEKING FROM A WIDE RANGE OF DEFENDANTS IN A RACKETEERING AND FRAUD ACTION THE DEFENDANTS INCLUDE GARY DRIGGS AND JOHN DRIGGS WESTERN'S PRESIDENT AND CHAIRMAN RESPECTIVELY OTHER WESTERN OFFICERS AND DIRECTORS AND THE ACCOUNTING FIRM DELOITTE & TOUCHE THAT 1992 ACTION WAS ONE OF THE LARGEST FILED BY THE RTC AND THE GOVERNMENT'S LOSSES OF 27 BILLION AT PHOENIXBASED WESTERN MAKE IT ONE OF THE COSTLIEST S&L INSOLVENCIES LAST MONTH GARY DRIGGS AND TIMOTHY WRIGHT A FORMER WESTERN EXECUTIVE IN CHARGE OF REALESTATE LOANS WERE INDICTED BY A GRAND JURY ON FRAUD AND OTHER CRIMINAL CHARGES RELATED TO THE RTC LAWSUIT UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW AND WESTERN'S COLLAPSE IN 1989 THE GRAND JURY CHARGED MR DRIGGS WITH 25 COUNTS INCLUDING FINANCIALINSTITUTION FRAUD CONSPIRACY WIRE FRAUD MISAPPLICATION OF FUNDS AND LYING TO REGULATORY AGENCIES THE RTC'S STREICH LANG SUIT CHARGES THAT THE FIRM ADVANCED GARY DRIGGS'S INTERESTS IN CLOSING SHAM TRANSACTIONS THAT WERE CONTRARY TO WESTERN'S INTERESTS IN THE 1992 RICO LAWSUIT THE RTC CONTENDED THAT MR DRIGGS ENGINEERED A SERIES OF SHAM REALESTATE AND SECURITIES DEALS TO CONCEAL WESTERN'S POOR FINANCIAL SHAPE YESTERDAY THE RTC ALLEGED THAT STREICH LANG WAS NEGLIGENT BREACHED FIDUCIARY DUTIES OWED TO WESTERN AND AIDED GARY DRIGGS AND OTHERS IN BREACHING THEIR DUTIES TO WESTERN IT CONTENDED THAT THE LAW FIRM BACKDATED OPINION LETTERS AND FILED REPORTS WITH FEDERAL AGENCIES THAT IT KNEW OR SHOULD HAVE KNOWN WERE FALSE YESTERDAY'S SUIT WAS ALSO FILED AGAINST THOMAS LANG WHO WAS THE STREICH LANG PARTNER IN CHARGE OF REPRESENTING WESTERN S&L AND AGAINST 47 OTHER STOCKHOLDERS IN THE FIRM AND THEIR 35 SPOUSES PRESTON STEENHOECK MANAGING DIRECTOR OF STREICH LANG SAID THE ALLEGATIONS WERE SIMILAR TO THOSE FILED BY THE RTC IN 1992 AGAINST OTHER LAWYERS ACCOUNTANTS AND PROFESSIONALS IN CONNECTION WITH THE THRIFT AND SAID THE NEW SUIT WOULDN'T AFFECT THE FIRM'S ABILITY TO SERVE ITS CLIENTS THE RTC SAID THAT STREICH LANG ACTED AS WESTERN'S GENERAL COUNSEL ADVISED THE THRIFT ON REGULATORY AND SECURITIES MATTERS AND REPRESENTED IT IN MOST OF ITS MAJOR LOAN AND REALESTATE TRANSACTIONS STREICH LANG WAS DEEPLY INVOLVED IN DEALS SUCH AS SWIRLS IN WHICH WESTERN REAL ESTATE WAS SUPPOSEDLY SOLD AT ARTIFICIALLY INFLATED PRICES THOUGH THE TRANSACTIONS WERE REALLY FINANCED ENTIRELY BY WESTERN THE RTC ALLEGED THESE WERE PART OF A SERIES OF MANEUVERS AIMED AT CREATING THE FALSE APPEARANCE THAT WESTERN WAS TRIMMING EXCESSIVE INVESTMENTS REAPING BIG PROFITS OR AT LEAST AVOIDING LOSSES AND BOOSTING ITS CAPITAL THE RTC SAID SOME STREICH LANG PARTNERS PERSONALLY PROFITED AT WESTERN'S EXPENSE IN ONE SUCH DEAL IN WHICH THEY BOUGHT LEASED BACK AND LATER RESOLD PROPERTY TO WESTERN AT A SUBSTANTIAL PROFIT WITH NO BENEFIT TO THE THRIFT THE RTC SUIT CHARGED FORMER GOLDMAN SACHS & CO PERSONNEL EXECUTIVE JOANNE FLYNN HAS DROPPED THE APPEAL OF HER SEX DISCRIMINATION SUIT AGAINST THE INVESTMENT BANK IN NOVEMBER FEDERAL DISTRICT COURT JUDGE KIMBA L WOOD IN NEW YORK THREW OUT A JURY VERDICT IN MS FLYNN'S FAVOR AFTER A 10DAY TRIAL STEVEN HYMAN MS FLYNN'S ATTORNEY SAID SHE BELIEVED THE APPEAL WOULD BE SUCCESSFUL BUT THAT THE COST AND PROSPECT OF A NEW TRIAL HAD INFLUENCED HER DECISION SHE WANTS TO GO FORWARD WITH HER LIFE MR HYMAN SAID GOLDMAN SACHS SAID IT MADE NO PAYMENT TO MS FLYNN IN CONNECTION WITH THE TERMINATION OF THE CASE BUT DECLINED FURTHER COMMENT NOTED AN ATTORNEY FOR A WORLD TRADE CENTER BOMBING DEFENDANT ACKNOWLEDGED FOR THE FIRST TIME THE EXISTENCE OF A CONSPIRACY TO DESTROY A BUILDING IN THE UNITED STATES BUT SAID THAT HIS CLIENT MOHAMMAD SALAMEH HAD BEEN DUPED INTO PARTICIPATING THE ATTORNEY ROBERT PRECHT SAID IN HIS CLOSING ARGUMENTS THAT THE EVIL GENIUS BEHIND THE PLOT WAS RAMZI YOUSEF WHO IS ALSO CHARGED IN THE FEB 26 1993 ATTACK MR YOUSEF HAS SINCE FLED THE COUNTRY AND ISN'T ON TRIAL THE CASE IS EXPECTED TO GO TO THE JURY NEXT WEEK ALBERT R KARR AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9402170031 940217 S&P 500 INDEX TO ADD KEYCORP NEW YORK STANDARD & POOR'S CORP SAID IT WILL ADD KEYCORP TO ITS S&P 500 INDEX FOLLOWING THE COMPLETION OF THE BANK HOLDING COMPANY'S MERGER WITH SOCIETY CORP WHICH SHAREHOLDERS APPROVED YESTERDAY THE RATING AGENCY SAID THE MERGER EXPECTED TO BE COMPLETED BY MARCH 1 WILL HAVE A MARKET VALUE OF ABOUT 7 BILLION S&P SAID IT WILL NAME THE COMPANY TO BE REMOVED FROM THE INDEX NEXT WEEK 9402170030 940217 ARMY PICKS LORAL MISSILE OVER RAYTHEON INTERCEPTOR WASHINGTON THE ARMY SELECTED A NEW MISSILE INTERCEPTOR BEING DEVELOPED BY LORAL CORP OVER A SYSTEM BEING DEVELOPED BY RAYTHEON CO THE ARMY CHOSE LORAL'S EXTENDEDRANGE INTERCEPTOR MISSILE KNOWN AS THE ERINT OVER RAYTHEON'S MULTIMODE MISSILE RAYTHEON BUILDS THE PATRIOT MISSILE INTERCEPT SYSTEM THAT BECAME FAMOUS DURING THE PERSIAN GULF WAR COMPARED WITH THE PATRIOT THE ERINT MISSILE OFFERS INCREASED RANGE ACCURACY AND LETHALITY A PENTAGON STATEMENT SAID THE PENTAGON SAID THAT AS A HEDGE A REDUCED AMOUNT OF FUNDING WOULD GO TOWARD CONTINUING THE DEVELOPMENT OF THE MULTIMODE MISSILE NO CONTRACT WAS ACTUALLY AWARDED BY THE PENTAGON AND NO DOLLAR AMOUNT WAS SPECIFIED IN THE STATEMENT THE ARMY DECISION FOLLOWING A CLOSELY WATCHED COMPETITION IN THE DEFENSE INDUSTRY STILL MUST BE AFFIRMED BY THE PENTAGON'S DEFENSE ACQUISITION BOARD AT A SESSION SCHEDULED FOR MARCH 1 IF THE BOARD AGREES THE ERINT MISSILE BUILT BY NEW YORKBASED LORAL'S VOUGHT SYSTEMS UNIT COULD BE FUNDED FOR FURTHER DEVELOPMENT AND EVENTUALLY FUNDED FOR VALUABLE CONTRACTS FOR PRODUCTION AND DELIVERY NEAR THE END OF THE DECADE PROVIDED CONGRESS GOES ALONG A SPOKESMAN FOR LORAL CONFIRMED THE SELECTION BUT HAD NO FURTHER COMMENT AT RAYTHEON BASED IN LEXINGTON MASS A SPOKESMAN SAID MANAGERS ARE DEEPLY DISAPPOINTED BECAUSE THEY FELT THEIR MULTIMODE MISSILE HAD PERFORMED WELL IN TESTS AND PRESENTED THE LOWEST RISK TO THE ARMY HE SAID RAYTHEON WILL ASK FOR A FULL BRIEFING ON THE DECISION 9402170029 940217 POLITICS & POLICY WHITEWATER GRAND JURY APPROVED BY US JUDGE LITTLE ROCK ARK AP AT THE REQUEST OF WHITEWATER SPECIAL COUNSEL ROBERT FISKE A FEDERAL JUDGE AGREED TO CREATE A SPECIAL GRAND JURY TO LOOK INTO PRESIDENT CLINTON'S REAL ESTATE INVESTMENT THE EXTENSIVE SCOPE OF MR FISKE'S INVESTIGATION WAS REVEALED IN THE JUDGE'S ORDER WHICH SAID THE INQUIRY WAS EXPECTED TO INVOLVE MORE THAN ONE MILLION DOCUMENTS 200 TO 300 INTERVIEWS AND MORE THAN 20 FEDERAL BUREAU OF INVESTIGATION AGENTS AND OTHER ASSISTANTS MR FISKE ALSO DISCLOSED THAT HIS OFFICE NEXT MONTH WILL TRY THE CASE OF LITTLE ROCK BUSINESSMAN DAVID HALE CHARGED WITH DEFRAUDING THE SMALL BUSINESS ADMINISTRATION MR HALE SAYS HE WAS PRESSURED BY MR CLINTON AND JAMES MCDOUGAL THE OWNER OF A FAILED S&L TO MAKE A 300000 LOAN BACKED BY THE SBA THE LOAN WENT TO A COMPANY OWNED BY SUSAN MCDOUGAL MR MCDOUGAL'S WIFE AT THE TIME MR CLINTON HAS STEADFASTLY DENIED PRESSURING MR HALE IN ADDITION MR FISKE SAID HE ALSO WOULD TRY ANY NEW INDICTMENT AGAINST MR MCDOUGAL WHO WAS ACQUITTED IN 1990 OF BANK FRAUD CHARGES THE CLINTONS WERE 5050 INVESTORS WITH THE MCDOUGALS IN WHITEWATER DEVELOPMENT CORP MR FISKE IS INVESTIGATING WHITEWATER AND THE FAILED S&L MADISON GUARANTY SAVINGS & LOAN 9402170028 940217 CIVILITY GOES UNDERGROUND BY KIRSTI HASTINGS HERE IT IS FOLKS THE STORY YOU THOUGHT YOU'D NEVER SEE AN UPBEAT FEATURE ON THE NEW YORK SUBWAY THE TALE ACTUALLY BEGINS ON NOV 26 1990 THE DAY THE SUPREME COURT REFUSED TO HEAR AN APPEAL THAT ARGUED THAT BEGGING ON THE CITY'S TRAINS WAS PROTECTED UNDER THE FIRST AMENDMENT THE ORIGINAL CLASSACTION SUIT BROUGHT BY TWO HOMELESS MEN WHO BEGGED AND PANHANDLED IN THE NEW YORK CITY SUBWAY SYSTEM WAS FILED BY THE LEGAL ACTION CENTER FOR THE HOMELESS INSTEAD OF GOING FOR A WIDE INTERPRETATION OF THE FRAMERS' INTENT THE COURT STOOD BY THE METROPOLITAN TRANSIT AUTHORITY AND THE OTHER TRANSPORTATION AGENCIES THAT WERE DEFENDANTS IN THE CASE AS A RESULT OF THE RULING THE MTA COULD OFFICIALLY AND LOUDLY TELL ITS PASSENGERS THAT PANHANDLING WAS ILLEGAL IN THE EARLY 1990S PASSENGERS' NUMBERONE COMPLAINT WAS PANHANDLER INTRUSION FOLLOWING NOVEMBER'S ELECTION OF A TOUGHONCRIME MAYOR RUDOLPH GIULIANI THE CITY AGENCY LAUNCHED A LONGPLANNED QUALITYOFLIFE CAMPAIGN THE TRANSIT AUTHORITY PUT UP POSTERS REMINDING RIDERS THAT PANHANDLING IS ILLEGAL THE SIMPLE ADVERTISEMENT READS IN PART GIVE TO THE CHARITY OF YOUR CHOICE BUT NOT ON THE SUBWAY BROCHURES STACKED BY SUBWAY ENTRANCES EXPLAIN THAT IT IS ILLEGAL TO LIVE IN SUBWAY TRAINS AND TUNNELS AND INSIST THAT CUSTOMERS NOT BE INTIMIDATED INTO GIVING TO PANHANDLERS A TASK FORCE HAS BEEN ASSIGNED TO ARREST REPEAT OFFENDERS IT ISN'T AS IF NEW YORKERS HAVEN'T FELT AND SHOWN COMPASSION FOR THE CITY'S ESTIMATED 90000 HOMELESS NEW YORKERS PAY A GREATER SHARE OF THE PARTICULARLY LARGE TAX BILL FOR PUBLIC ENTITLEMENT PROGRAMS 25 THAN DO RESIDENTS OF MANY OTHER CITIES NEW YORKERS ALSO SUPPORT NUMEROUS PRIVATECHARITY ASSISTANCE PROGRAMS SUCH AS SOUP KITCHENS AND CHURCH SHELTER PROGRAMS OVER THE YEARS MANY TRAIN RIDERS HAVE HANDED COINS TO THE UNFORTUNATES WHO ASK FOR MONEY BUT THESE DAYS WHEN IT SOMETIMES SEEMS THAT NEARLY EVERY SUBWAY CAR FEATURES AN ELOQUENT OR AGGRESSIVE PETITIONER RIDERS ARE HAVING SECOND THOUGHTS ABOUT GENEROSITY THEY ARE ALSO TIRED OF FEELING GUILTY I FEEL LIKE I HAVE TO GIVE TO THEM SAYS 25YEAROLD MICHELLE WEBER WHO TRAVELS BY SUBWAY TO HER ADVERTISING JOB EVERY DAY I FEEL LIKE I HAVE TO GIVE AN EXPLANATION IF I DON'T GIVE GIVEN THE HIGH RATE OF SUBSTANCE ABUSE IN NEW YORK RIDERS WONDER IF THEIR CASH IS SUPPORTING A DRUG HABIT MARGARET NOLAN A NURSE AND MOTHER OF TWO PRESCHOOLERS WHO LIVES ON MANHATTAN'S UPPER WEST SIDE SAYS PANHANDLERS USE ALL KINDS OF TRICKS TO GET YOU TO GIVE I'M NOT ON DRUGS I DON'T HAVE A GUN' THEY SAY IT MAKES ME FEEL REALLY UNCOMFORTABLE ESPECIALLY WHEN I'M WITH MY KIDS NOW THE NEWEST GIMMICK IS SAYING THEY'RE HIV POSITIVE QUANTIFIABLE EVIDENCE SHOWS HOW PANHANDLING HAS COST THE CITY'S TRANSIT SYSTEM MTA SPOKESMAN JOHN CUNNINGHAM REPORTS THAT YEAR AFTER YEAR MTA SURVEYS HAVE FOUND THAT PANHANDLERS ARE THE BIGGEST SOURCE OF RIDER COMPLAINTS 90 OF SUBWAY RIDERS CITED THE ISSUE AFTER 1989 AS MORE AND MORE PANHANDLERS APPEARED TO BE MOVING UNDERGROUND RIDERSHIP FELL NEARLY 10 OF NEW YORKERS SAY THEY HAVE CUT BACK SUBWAY USE DUE TO THE PROBLEM A FEW WEEKS INTO NEW YORK'S CAMPAIGN COMMUTERS ARE ALREADY REMARKING THAT THEY NOTICE A DECLINE IN PANHANDLING ALTHOUGH SOME WONDER IF ENFORCING THIS PROGRAM IS A WASTE OF THE POLICE FORCE'S TIME ROBERT JAMES 35 AND HOMELESS SINCE HE SAYS A CAR ACCIDENT THREE YEARS AGO LEFT HIM DISABLED REPORTS THAT HIS EIGHTHOUR SHIFT RIDING THE RAILS AND ASKING FOR MONEY NOW PULLS IN BETWEEN 20 AND 30 HALF WHAT HE SAYS HE USED TO MAKE A MONTH AGO BEFORE THE CAMPAIGN BEGAN THE MTA FOR ITS PART IS WORKING HARD TO OFFER ALTERNATIVE HELP FOR THOSE EJECTED FROM THE TRAINS CONNECTIONS A NEW MTA OUTREACH PROGRAM SENDS CASEWORKERS INTO THE TRANSIT SYSTEM TO DIRECT THE HOMELESS TO MEDICAL AND MENTAL HEALTH FACILITIES SUBSTANCE ABUSE TREATMENT CENTERS OR PLACES THAT PROVIDE FOOD AND SHELTER BUT THE MTA ALSO FACES STIFF OPPOSITION WHAT GOOD DOES IT DO TO CRIMINALIZE THE POOR ASKS DAVID GIFFEN NEW YORK DIRECTOR OF THE COALITION FOR THE HOMELESS IT IS NOT HELPING PEOPLE TO BECOME CONSTRUCTIVE MEMBERS OF SOCIETY OUT OF THE SHELTERS AND INTO THE STREETS AND THE COALITION FOR THE HOMELESS TWO ADVOCACY GROUPS HAVE SENT GRAFFITI TROOPS INTO THE SUBWAYS TO PROTEST A COUNTERAD HAS BEEN PASTED OVER SEVERAL MTA POSTERS SHOWING WHAT PASSENGERS SHOULD BE THINKING WHEN BEGGARS APPROACH WHY DOES RUDY GIULIANI THINK IT'S A CRIME TO BE POOR AND WHY IS THE MTA TRYING TO TELL ME WHAT TO DO WITH MY MONEY AND MY CONSCIENCE IT READS BUT THE MTA INSISTS THAT THE CAMPAIGN IS NOT DESIGNED TO DISCOURAGE COMPASSION IT SAYS IT IS RESPONDING TO ITS MARKET WE HAVE A RIGHT AND RESPONSIBILITY TO ADDRESS OUR CUSTOMERS NEEDS AND COMPLAINTS SPOKESMAN JOHN CUNNINGHAM SAYS MS HASTINGS WORKS ON THE JOURNAL'S EDITORIAL PAGE 9402170027 940217 MOBIL AFFILIATE SIGNS INDIA PACT FAIRFAX VA MOBIL CORP SAID AN AFFILIATE SIGNED AN EXCLUSIVE AGREEMENT TO DISTRIBUTE MOBILBRAND LUBRICANTS IN INDIA MOBIL SAID ITS MOBIL PETROLEUM CORP AND INDIAN OIL CORP THE LARGEST OIL COMPANY IN INDIA WILL ESTABLISH A JOINT VENTURE INDOMOBIL PTE LTD MOBIL SAID INDOMOBIL WILL SELL MOBIL LUBRICANTS THROUGH INDIAN OIL'S 11000 SERVICE STATIONS AND OUTLETS AND WILL ALSO SELL THE LUBRICANTS TO BUSINESSES THROUGHOUT INDIA THE AGREEMENT ALSO INCLUDES PLANS TO BUILD A LUBE OIL BLENDING PLANT NEAR NEW DELHI MOBIL SAID 9402170026 940217 TWO BANKING GROUPS PROD FED TREASURY ON REFORMS WASHINGTON TWO BANKING GROUPS URGED THE FEDERAL RESERVE BOARD AND THE TREASURY TO RESOLVE THEIR DIFFERENCES OVER RESHAPING THE BANKREGULATORY SYSTEM BEFORE CONGRESS TAKES UP THE MATTER THE GROUPS ALSO THREATENED TO OPPOSE ALL LEGISLATIVE EFFORTS THAT THE AGENCIES COULDN'T AGREE ON WE ARE IN AGREEMENT WITH THE INTENT OF THE PROPOSALS PUT FORWARD BY THE TREASURY DEPARTMENT AND THE FEDERAL RESERVE BOARD BOTH OF WHICH ARE DESIGNED TO ELIMINATE DUPLICATIVE AND UNNECESSARY REGULATION TOP OFFICIALS OF THE AMERICAN BANKERS ASSOCIATION AND THE BANKERS ROUNDTABLE WROTE IN A FEB 10 LETTER TO FED CHAIRMAN ALAN GREENSPAN AND TREASURY SECRETARY LLOYD BENTSEN BUT WE CANNOT SUPPORT OR RECOMMEND EITHER PROPOSAL BECAUSE THE PLANS DON'T MEET CERTAIN CRITERIA THE GROUPS SAY ARE MOST IMPORTANT THE GROUPS SAID ANY REFORM PLAN SHOULD PRESERVE SEPARATE REGULATORY STRUCTURES FOR STATE AND NATIONALLYCHARTERED BANKS MAINTAIN AN IMPORTANT SUPERVISORY AND REGULATORY ROLE FOR THE FED SAVE COSTS AND REDUCE DUPLICATION REDUCE THE NUMBER OF BANK AGENCIES AND FOLD IN CREDITUNION SUPERVISION 9402170025 940217 BUSINESS BRIEF MCCAW CELLULAR SAYS LOSS FOR 4TH QUARTER MORE THAN TRIPLED KIRKLAND WASH MCCAW CELLULAR COMMUNICATIONS INC SAID SPECIAL ITEMS CAUSED ITS LOSS FOR THE FOURTH QUARTER OF 1993 TO MORE THAN TRIPLE FROM YEARAGO LEVELS BUT THE NUMBER OF SUBSCRIBERS TO ITS CELLULARPHONE SYSTEMS SOARED THE COMPANY WHOSE ACQUISITION BY AMERICAN TELEPHONE & TELEGRAPH CO IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER REPORTED A NET LOSS OF 2075 MILLION OR 1 A SHARE COMPARED WITH A NET LOSS OF 627 MILLION OR 34 CENTS A SHARE IN THE YEAREARLIER QUARTER THE RESULTS ARE ADJUSTED FOR MCCAW'S 52 INTEREST IN LIN BROADCASTING CORP A CELLULAR OPERATOR AND BROADCAST CONCERN THE INCREASED LOSS STEMMED FROM A 77 MILLION PRETAX WRITEDOWN OF EQUIPMENT A 79 MILLION PRETAX WRITEOFF OF UNAMORTIZED BANK FEES AND A 45 MILLION AFTERTAX EXTRAORDINARY CHARGE ON EARLY EXTINGUISHMENT OF DEBT MCCAW HAS REPORTED LOSSES FOR MANY QUARTERS BECAUSE OF THE HEAVY USE OF DEBT TO BUILD THE NATION'S LARGEST CELLULARPHONE NETWORK BUT OTHER OPERATING RESULTS PROVIDED MORE EVIDENCE THAT CELLULAR PHONE USAGE IS ACCELERATING RAPIDLY IN THIS COUNTRY AS LOWER PRICES OF THE PHONES AND BETTER SERVICE ATTRACT CONSUMERS IN ADDITION TO BUSINESS USERS THE COMPANY SAID IT ADDED A RECORD 239000 SUBSCRIBERS IN THE FOURTH QUARTER MORE THAN TWICE THE GROWTH OF THE YEARAGO PERIOD TOTAL REVENUE JUMPED 24 TO 6117 MILLION FROM 4942 MILLION FOR THE YEAR MCCAW SAID THE NUMBER OF SUBSCRIBERS JUMPED 37 TO THREE MILLION AS OF DEC 31 THE NET LOSS FOR THE YEAR FELL SLIGHTLY TO 2723 MILLION OR 134 A SHARE FROM A NET LOSS OF 2856 MILLION OR 160 A SHARE A YEAR EARLIER THE WEIGHTED AVERAGE SHARES OUTSTANDING INCREASED TO 2029 MILLION FROM 1827 MILLION REVENUE ROSE 26 TO 219 BILLION FROM 174 BILLION IN NASDAQ STOCK MARKET TRADING MCCAW CLOSED AT 5225 DOWN 125 CENTS 9402170024 940217 WEDNESDAY'S MARKETS STOCK PRICES RISE SLIGHTLY AS RALLY EASES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A STRONG STOCKMARKET RALLY FIZZLED OUT LEAVING PRICES MODESTLY HIGHER BOND PRICES AND THE DOLLAR ENDED SLIGHTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE GAINED 9 POINTS TO 393727 STANDARD & POOR'S 500STOCK INDEX ROSE 027 TO 47279 AND THE NASDAQ COMPOSITE INDEX JUMPED 250 TO 79262 STOCK PRICES STARTED THE DAY ON A STRONG NOTE WITH THE INDUSTRIAL AVERAGE SHOOTING UP 21 POINTS BY MIDMORNING BUT PROFITTAKING SOON SWEPT IN TRADERS WERE ALL OVER THE LOT BUYING AND SELLING IN HITANDRUN TYPE ACTIONS SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO IT MAKES THE MARKET MORE VOLATILE THAN ONE WOULD LIKE UTILITY STOCKS SLUMPED THE DOW JONES UTILITY AVERAGE OFTEN AN INDICATOR OF FUTURE INTERESTRATE TRENDS FELL 270 TO 21276 CONTINUING ITS RECENT DECLINE SINCE JAN 31 THE AVERAGE HAS FALLEN NEARLY 6 THE MARKET IS CLEARLY PREPARED FOR SOMEWHAT HIGHER INTEREST RATES WHICH IS UNDERSTANDABLE GIVEN THAT THE ECONOMY IS GROWING SAID CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 11639 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2954 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1183 ISSUES ROSE AND 965 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 646 THE DOLLAR SLIPPED IN LATE NEW YORK TRADING IT WAS QUOTED AT 17233 MARKS AND 10380 YEN COMPARED WITH 17305 MARKS AND 10370 YEN TUESDAY 9402170023 940217 US SURGICAL IN LOAN TALKS SEEKS INVESTORS PATENT DECISION BY A JURY GOES AGAINST COMPANY STOCK PRICE FALLS 21 BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP IN THE SHARPEST ACKNOWLEDGEMENT YET OF ITS ERODING FINANCIAL POSITION SAID IT IS RENEGOTIATING LOAN AGREEMENTS WITH ITS BANKS AND IS RETAINING INVESTMENT BANKERS TO LOOK FOR EQUITY INVESTORS THE SURPRISE ANNOUNCEMENT FOLLOWED A JURY'S DECISION IN US DISTRICT COURT IN HARTFORD CONN THAT ARCHRIVAL JOHNSON & JOHNSON DIDN'T INFRINGE ON A US SURGICAL PATENT FOR A POPULAR DEVICE USED IN ENDOSCOPIC OR BANDAID SURGERY PROCEDURES ONE ANALYST SAID THE COMPANY MAY HAVE BEEN HOPING FOR A HEFTY FINANCIAL AWARD IN THE PATENTINFRINGEMENT CASE TO IMPROVE ITS FINANCIAL POSITION BUT THE COURT DECISION IS HARDLY THE WORST OF THE COMPANY'S PROBLEMS CONTINUED HEAVY COMPETITION AND SWOLLEN HOSPITAL INVENTORIES HAVE DAMPED SALES AND CHOKED CASH FLOW US SURGICAL SAID IT EXPECTS TO REPORT FOURTHQUARTER SALES OF 244 MILLION AND A LOSS OF 26 CENTS A SHARE NOT INCLUDING A PREVIOUSLY REPORTED 130 MILLION RESTRUCTURING CHARGE IN THE YEAREARLIER QUARTER THE COMPANY POSTED EARNINGS OF 379 MILLION OR 64 CENTS A SHARE ON SALES OF 322 MILLION THE COMPANY SAID IT HAS RETAINED KIDDER PEABODY & CO AND BEAR STEARNS & CO TO AMONG OTHER THINGS SEEK EQUITY INVESTMENTS TO IMPROVE THE COMPANY'S FINANCIAL POSITION OUR PREFERENCE WOULD BE TO HAVE A CASH INFUSION BY AN EQUITY INVESTMENT SAID MARIANNE SCIPIONE VICE PRESIDENT CORPORATE COMMUNICATIONS AT THIS POINT WE'VE GOT TO LOOK AT EVERY OPTION AND LOOK AT WHAT'S IN THE BEST INTERESTS OF THE COMPANY AND ITS SHAREHOLDERS THE ESTIMATED LOSS FOR THE FOURTH PERIOD WOULD BE THE COMPANY'S THIRD CONSECUTIVE QUARTERLY LOSS CASH FLOW WAS NEGATIVE DURING LAST YEAR'S SECOND HALF AS OF LAST SEPT 30 THE COMPANY HAD 476 MILLION OF LONGTERM DEBT IN THE FORM OF BANK LOANS AND CAPITALIZED LEASES FROM INSURANCE COMPANIES IT HAD CREDIT LINES OF 650 MILLION THE RESTRUCTURING STEPS THE COMPANY ANNOUNCED IN OCTOBER AND DECEMBER INCLUDING THE SALE OF ASSETS AND LAYOFFS HAVE LED TO A VIOLATION OF SOME OF ITS LOAN COVENANTS MS SCIPIONE SAID IN A STATEMENT THE COMPANY SAID IT HAS BEEN OPERATING UNDER WAIVERS WITH THE INSURANCE COMPANIES INCLUDING ONE THAT WAS JUST REISSUED UNTIL MARCH 1 THE COMPANY ISN'T IN DEFAULT OF ITS BANKING AGREEMENTS THE STATEMENT ADDED BUT IT IS PRECLUDED FROM ADDITIONAL BORROWINGS THE COMPANY SAID IT HAS ADEQUATE FUNDS AND ANTICIPATES SUFFICIENT CASH FLOW TO PRECLUDE THE NECESSITY FOR ADDITIONAL BORROWING UNTIL NEGOTIATIONS ARE CONCLUDED GLENN REICIN AN ANALYST AT MORGAN STANLEY & CO SAID THE COMPANY'S TROUBLES PARTLY REFLECT THAT IT HAS BUILT TOO MUCH INFRASTRUCTURE FOR ITS PRESENT SALES VOLUME AND FINANCED ALMOST ALL OF IT WITH BANK DEBT MS SCIPIONE DESCRIBED THE COMPANY AS BEING IN A CATCH22 SHE SAID THE RESTRUCTURING WHICH INCLUDED SCRAPPING PLANS TO CENTRALIZE SOME EUROPEAN OPERATIONS AT A 380000SQUAREFOOT FACILITY NEAR PARIS AND WRITING DOWN THE VALUE OF THAT FACILITY WAS THE MOST BENEFICIAL AND PRUDENT THING TO DO BUT IN WRITING DOWN OR SHEDDING INVESTMENTS THE COMPANY FAILED TO MEET CERTAIN FINANCIAL RATIOS IN ITS LOAN AGREEMENTS ON PAPER IT TRIGGERS A DEFAULT SHE SAID EARLIER THIS YEAR THE COMPANY ANNOUNCED IT WAS POSTPONING ANNOUNCEMENT OF ITS FOURTHPERIOD RESULTS PENDING THE JURY'S DECISION IN THE PATENTINFRINGEMENT CASE THAT PROMPTED SOME SPECULATION AMONG ANALYSTS THAT THE COMPANY EXPECTED A FAVORABLE DECISION BUT MS SCIPIONE SAID YESTERDAY THAT THE COMPANY DELAYED THE ANNOUNCEMENT SO AMONG OTHER THINGS IT COULD CONCLUDE ITS TALKS WITH LENDERS BEFORE MAKING REQUIRED YEAREND FILINGS ON ITS EARNINGS TO THE SECURITIES AND EXCHANGE COMMISSION NOTHING IN THE LOAN NEGOTIATIONS WILL AFFECT FOURTHQUARTER RESULTS SHE SAID BUT WE HAVE TO HAVE ALL OF OUR LENDING ARRANGEMENTS INTACT TO REPORT OUR 10K FILING THE COMPANY WILL REPORT ITS FOURTHQUARTER AND YEAREND RESULTS NO LATER THAN MARCH 31 SHE SAID THE COURT DECISION WAS A DISAPPOINTMENT FOR THE COMPANY WHICH HAS MAINTAINED THAT JOHNSON & JOHNSON'S ETHICON UNIT HAS MADE INROADS IN ITS MARKET LEADERSHIP IN MINIMALLYINVASIVE SURGICAL GEAR IN PART BY COPYING ITS TECHNOLOGY THE JURY DENIED THE COMPANY'S CLAIM THAT ETHICON HAD INFRINGED ON US SURGICAL'S PATENT FOR A DEVICE CALLED A CLIP APPLIER USED IN PROCEDURES SUCH AS LAPAROSCOPIC GALLBLADDER SURGERY US SURGICAL SAID IT WILL APPEAL THE DECISION I THINK WHAT THE COMPANY WAS BANKING ON WAS IF THEY WON THE LAWSUIT THEY WOULD GET A LARGE CASH INFUSION IF THEY PROVED TREBLE DAMAGES SAID MORGAN STANLEY'S MR REICIN THAT WOULD HAVE HELPED THE COMPANY TO PAY SOME OF THE DEBT HE ADDED KENNETH S ABRAMOWITZ ANALYST AT SANFORD C BERNSTEIN & CO SAID WALL STREET EXPECTATIONS ON THE OUTCOME OF THE COURT CASE WERE OVERSTATED HE PREDICTED THAT THE COMPANY WILL EITHER SELL EQUITY OR STRIKE A STRATEGIC ALLIANCE WITH A CORPORATE PARTNER TO REBUILD ITS FINANCIAL POSITION IT'S AN INNOVATIVE CREATIVE COMPANY THAT HAS TO WORK ITSELF OUT OF THE HOLE IT DUG FOR ITSELF AND THAT TAKES SOME TIME HE SAID ROBIN GOLDWYN BLUMENTHAL AND ANNE NEWMAN CONTRIBUTED TO THIS ARTICLE US SURGICAL CORP SAID IT ISN'T IN VIOLATION OF ANY LOAN COVENANT AND ISN'T IN DEFAULT UNDER ANY LOAN AN ARTICLE YESTERDAY INCORRECTLY SAID RESTRUCTURING STEPS AT THE COMPANY HAD LED TO A VIOLATION OF ITS LOAN COVENANTS 9402170022 940217 KRANZCO BUYS SHOPPING CENTERS CONSHOHOCKEN PA KRANZCO REALTY TRUST SAID IT COMPLETED THE ACQUISITION OF TWO SHOPPING CENTERS FROM TWO PRIVATE PARTNERSHIPS FOR 199 MILLION THE COMPANY SAID THE PROPERTIES PURCHASED SUBURBAN PLAZA IN HAMILTON TOWNSHIP NEAR TRENTON NJ AND 69TH STREET CENTER IN UPPER DARBY TOWNSHIP PA HAVE ABOUT 280000 SQUARE FEET OF GROSS LEASABLE SPACE AND ARE 100 LEASED KRANZCO PURCHASED THE 69TH STREET CENTER FOR 36 MILLION AND THE SUBURBAN PLAZA CENTER FOR 163 MILLION 9402170020 940217 PRICE/COSTCO POSTS SALES INCREASE KIRLAND WASH PRICE/COSTCO INC SAID SALES FOR THE FOUR WEEKS ENDED FEB 13 ROSE 8 TO 113 BILLION FROM 105 BILLION FOR THE YEAREARLIER PERIOD SAMESTORE SALES DECLINED 1 THE COMPANY SAID SAMESTORE SALES WERE HURT BY THE JAN 17 EARTHQUAKE IN CALIFORNIA AND BAD WEATHER IN THE NORTHEAST YEARTODATE SALES FOR THE 24 WEEKS ENDED FEB 13 ROSE 6 TO 761 BILLION FROM 716 BILLION SAMESTORE SALES SLIPPED 3 9402170019 940217 FOREIGN EXCHANGE DOLLAR HARDLY MOVES AS MARKET WEIGHS CONTINUING USJAPAN TRADE STANDOFF BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR BARELY BUDGED AGAINST THE YEN YESTERDAY AS THE MARKET SHOWED LITTLE REACTION TO THE CONTINUING STANDOFF IN USJAPAN TRADE RELATIONS THE US CURRENCY ALSO HAD ONLY HALTING MOVEMENT AGAINST EUROPEAN CURRENCIES WITH TRADERS HESITANT TO STAKE LARGE POSITIONS AHEAD OF THE BUNDESBANK'S FORTNIGHTLY POLICYMAKING MEETING TODAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17233 MARKS DOWN FROM 17305 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10380 YEN UP SLIGHTLY FROM 10370 YEN STERLING WAS TRADING AT 14765 UP A BIT FROM 14735 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10365 YEN AND AT 17250 MARKS THE DOLLAR HAD PLUNGED AGAINST THE YEN MONDAY AFTER FRIDAY'S COLLAPSE OF USJAPAN TRADE TALKS THE TREMENDOUS EMOTIONAL OUTPOURING THAT FOLLOWED THE BREAKDOWN IN TRADE TALKS HAS FINALLY SETTLED AND WE'RE CONSOLIDATING IN A FAIRLY TIGHT RANGE SAID STEPHEN FLANAGAN VICE PRESIDENT AT PAINEWEBBER INC THE DOLLAR FELL MODERATELY YESTERDAY AFTER PRESIDENT CLINTON SAID THAT HIS TOP ADVISERS WILL MAKE RECOMMENDATIONS IN THE NEXT FEW DAYS ON TRADE ACTIONS BUT TRADERS SAID THAT EVEN THE CLINTON ANNOUNCEMENT WASN'T ENOUGH TO DRIVE THE DOLLAR BELOW EARLIER INTRADAY LOWS THE LOW OF 10308 YEN WAS REACHED DURING ASIAN TRADING SOON AFTER JAPAN RELEASED DATA SHOWING ITS TRADE SURPLUS REMAINED AT HIGH LEVELS IN JANUARY IN ADDITION JAPAN GAVE EVERY INDICATION IT WOULD CONTINUE TO STAND UP TO US PRESSURE FOR MORE TRADE CONCESSIONS JAPANESE TRADE NEGOTIATOR NOBUTOSHI AKAO HAMMERED THE US SAYING ITS POSITION WAS A BETRAYAL OF TRUST FOLLOWING THE SUCCESSFUL COMPLETION OF THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT LAST DECEMBER IN ADDITION TRADERS FEAR THE UNPREDICTABLE CONSEQUENCES FOR THE DOLLAR IF A FULLFLEDGED TRADE WAR DEVELOPS WITH JAPAN MR FLANAGAN SAID RECENT YEN STRENGTH HAS BEEN MAINLY BASED ON PERCEPTIONS THAT THE US WILL TRY TO PUSH THE YEN HIGHER TO HURT JAPANESE EXPORTERS AND SO FORCE TRADE CONCESSIONS OUT OF JAPAN ONE CAN MAKE AN ARGUMENT FOR A DOLLAR MOVE IN EITHER DIRECTION MR FLANAGAN SAID ADDING THE YEN COULD WEAKEN ON FUNDAMENTALS OR STRENGTHEN ON US JAWBONING A TRADE WAR HE NOTED WOULD WEAKEN JAPAN'S FLAGGING ECONOMY AND POSSIBLY DRAG THE YEN DOWN WITH IT ON THE OTHER HAND HE SAID THE MARKET IS PSYCHOLOGICALLY WELLINGRAINED TO THE IDEA THAT THE DOLLAR WILL TRADE LOWER AS A WAY OF CORRECTING THE TRADE IMBALANCE INDEED THE DOLLAR HIT ITS INTRADAY LOW ON NEWS THAT JAPAN POSTED A TRADE SURPLUS OF 611 BILLION IN JANUARY UP 17 FROM THE 522 BILLION A YEAR EARLIER THAT NEWS RENEWED FEARS THAT THE US WILL TRY TO TALK UP THE YEN AS A WAY OF CURBING THE IMBALANCE THOUGH US OFFICIALS HAVE BEEN GENERALLY RETICENT ON EXCHANGE RATES SINCE TRADE TALKS BROKE DOWN ON FRIDAY JAPAN'S TRADE SURPLUS WITH THE US ALONE JUMPED TO 313 BILLION IN JANUARY FROM 293 BILLION A YEAR EARLIER BUT WITH THE TRADE SURPLUS NUMBERS MORE OR LESS IN LINE WITH EXPECTATIONS THE DOLLAR DROP WAS MODEST MR FLANAGAN SAID THE MARKET COULD AGAIN PUSH THE DOLLAR DOWN TOWARD MONDAY'S LOW OF 101 YEN ONCE THE MARKET HAS A CLEARER IDEA ON THE US TRADE STRATEGY MEANWHILE THE DOLLAR SOFTENED MODERATELY AGAINST THE MARK ON THE VIEW THAT THE BUNDESBANK IS UNLIKELY TO CUT ITS KEY LOMBARD AND DISCOUNT RATES TODAY DESPITE THE WINDOW OF OPPORTUNITY THAT HAS PRESENTED ITSELF WITH THE DOLLAR'S DRAMATIC WEAKENING THIS WEEK 9402170018 940217 MARKETING & MEDIA ADVERTISING STEVE DWORIN IN A SURPRISE MOVE LEAVES HOT NEW YORK AD AGENCY BY KEVIN GOLDMAN ONE OF THE MOST SUCCESSFUL TEAMS ON MADISON AVENUE UNEXPECTEDLY SPLIT THIS WEEK AS STEVE DWORIN RESIGNED AS PRESIDENT OF THE HOT NEW YORK AGENCY DEUTSCH/DWORIN MR DWORIN WAS A SHARP CONTRAST TO DONNY DEUTSCH THE AGENCY'S FLAMBOYANT EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR MR DWORIN WAS PERCEIVED AS THE MORE SERIOUS HALF OF THE PAIR WHILE MR DEUTSCH WAS THOUGHT OF AS THE CREATIVE MAD GENIUS WHO CRAVED PUBLICITY AND DISLIKED ANYONE WHO TOOK THE SPOTLIGHT OFF HIM IN A JOINT TELEPHONE INTERVIEW BOTH MEN ACKNOWLEDGED THEIR PERSONAL RELATIONSHIP HAD DETERIORATED LATELY WE HAD A MAGICAL RELATIONSHIP BOTH PERSONAL AND PROFESSIONAL SAYS MR DWORIN 40 YEARS OLD BUT IT BEGAN TO FALL PART WE USED TO SIT NEXT TO ONE ANOTHER ON AN AIRPLANE FOR SIX HOURS AND TALK NONSTOP AND HAVE A GREAT TIME THAT DISAPPEARED INSTEAD OF LETTING THAT RUIN THE BUSINESS WE DECIDED TO PART COMPANY THE TWO BEGAN TALKING ABOUT DISSOLVING THE PARTNERSHIP ABOUT TWO MONTHS AGO AND CONFIDED IN NO ONE THE FINAL DECISION CAME LAST FRIDAY AND MR DEUTSCH BEGAN INFORMING CLIENTS ON MONDAY I WISH IT WAS SOMETHING IN PARTICULAR SAYS MR DWORIN WHO DOESN'T HAVE ANOTHER JOB AT THE MOMENT IN AN EARLIER SEPARATE INTERVIEW MR DEUTSCH WHOSE FATHER DAVID FOUNDED THE AGENCY IN 1969 SAID WE DECIDED IT WAS BEST FOR US TO GO OUR SEPARATE WAYS HE HAD A GREAT RUN SOMETIMES IT'S LIKE A MARRIAGE IT JUST DOESN'T WORK OUT STEVE IS PARTING AS A FRIEND OF THE AGENCY DAVID DEUTSCH REMAINS THE AGENCY'S CHAIRMAN INDIVIDUALS WHO KNOW BOTH MEN OFFERED OTHER REASONS FOR MR DWORIN DEPARTING STEVE PROBABLY WANTED MORE IN TERMS OF MONEY POWER AND RECOGNITION THAN DONNY WAS WILLING TO GIVE SAYS ONE PERSON WHO KNOWS BOTH EXECUTIVES IT IS IN THE END THE DEUTSCH CANDY STORE MR DEUTSCH DISPUTES THAT THEORY BUT ANDREW S PAKULA WHO WAS SENIOR VICE PRESIDENT NEW BUSINESS DIRECTOR AT DEUTSCH FROM 1987 THROUGH 1990 SAID YESTERDAY IT'S VERY DIFFICULT FOR SOMEONE TO BE TRULY COMPENSATED FOR THEIR EFFORTS THERE HE NOW HOLDS THE SAME POSITION AT BOZELL JACOBS KENYON & ECKHARDT MR DWORIN OWNS ABOUT 25 OF THE AGENCY WHICH WILL BE REPURCHASED BY MR DEUTSCH WHO IS 36 YEARS OLD MR DWORIN IS SAID NOT TO BE LACKING FOR MONEY HE SAID HE WILL TAKE A VACATION AND MAY SIT ON A BEACH AND THINK ABOUT HIS NEXT MOVE MR DWORIN JOINED THE AGENCY IN JULY 1991 WHEN IT WAS DEUTSCH INC MOVING FROM WPP GROUP'S J WALTER THOMPSON WHERE HE WAS SENIOR VICE PRESIDENT AND DIRECTOR OF ACCOUNT MANAGEMENT MR DWORIN IS CREDITED WITH BEING INSTRUMENTAL IN SNARING SOME OF THE AGENCY'S RECENT ACCOUNT WINS IN NOVEMBER HARDEE'S A UNIT OF IMASCO LTD AWARDED THE AGENCY ITS 75 MILLION ACCOUNT BOOSTING DEUTSCH/DWORIN'S TOTAL 1993 BILLINGS TO 275 MILLION FROM 135 MILLION A YEAR EARLIER LAST YEAR THE AGENCY ALSO WON THE ACCOUNTS OF PRUDENTIAL SECURITIES WITH BILLINGS OF 20 MILLION LENS CRAFTERS 35 MILLION TANQUERAY GIN 15 MILLION AND IKEA'S WEST COAST STORES 10 MILLION DEUTSCH/DWORIN HAS ABOUT 150 EMPLOYEES WE'RE GOING TO MOVE FORWARD SAYS MR DEUTSCH OUR CLIENTS ARE BEHIND US IF THIS HAD HAPPENED A MONTH AGO I WOULD BE WORRIED SAYS JERRY GRAMAGLIA HARDEE'S EXECUTIVE VICE PRESIDENT OF MARKETING WHO SAYS HE WAS SURPRISED AT THE DEPARTURE BUT WE ARE WELL INTO PRODUCING THE NEW CAMPAIGN AND BEGAN SHOWING ROUGH CUTS TO OUR FRANCHISEES RECENTLY IT'S WELL UNDER CONTROL PETER CONNOLLY DIRECTOR OF MARKETING AT IKEA SAYS WE DON'T EXPECT HIS RESIGNATION WILL MAKE ANY DIFFERENCE WITH OUR ACCOUNT HE ADDS HE IS SORRY TO SEE MR DWORIN LEAVE DESCRIBING HIM AS BRILLIANT ONE OF THE BEST IN THE BUSINESS A SMART STRATEGIC MAN RECOGNITION WAS SLOW TO COME TO MR DWORIN AT THE AGENCY AFTER REPORTEDLY MUCH DISCUSSION HIS NAME WAS FINALLY ADDED TO THE AGENCY'S NAME IN NOVEMBER 1992 16 MONTHS AFTER HE ARRIVED THE TEAMING OF MESSRS DEUTSCH AND DWORIN WAS A REUNION OF SORTS BOTH WORKED AT WPP GROUP'S OGILVY & MATHER IN 1979 AT THE TIME HE WAS HIRED MR DWORIN SAID ONE OF THE MAIN ATTRACTIONS WAS THE OPPORTUNITY TO BE AN ENTREPRENEUR BUT MR DEUTSCH IS SAID BY ADVERTISING EXECUTIVES WHO HAVE FIRSTHAND KNOWLEDGE OF THE AGENCY TO LOATHE THE PROSPECT OF ANYONE MAKING MORE MONEY THAN HE MR DEUTSCH SAYS THERE ARE ALWAYS PEOPLE WHO WOULD SAY ANYTHING NEGATIVE ABOUT ME SUCCESS SPEAKS FOR ITSELF THE AGENCY IS KNOWN FOR BRASH AND CHEEKY ADS EXEMPLIFIED BY IKEA AND ITS TRADEMARK LINE IT'S A BIG COUNTRY SOMEBODY'S GOT TO FURNISH IT THE AGENCY GOT INVOLVED IN PRESIDENTIAL POLITICS WHEN IT DID WORK FOR THE CLINTON CAMPAIGN DEUTSCH/DWORIN SEEMED IMMUNE TO THE TROUBLES OF OTHER AGENCIES WINNING ACCOUNTS MUCH FASTER THAN IT LOST THEM ONE NOTABLE EXCEPTION HOWEVER WAS THE LOSS LAST NOVEMBER OF G HEILEMAN BREWING'S COLT 45 MALT LIQUOR ACCOUNT BOZELL A UNIT OF BOZELL JACOBS KENYON & ECKHARDT HAS SIGNED UP AS A CHARTER AGENCY IN A TEST OF INTERACTIVE TELEVISION ADVERTISING CREATING WORK ON BEHALF OF AVIS INC BOZELL AND AVIS ARE TAKING PART IN A TEST OF INTERACTIVE PROGRAMMING AND ADVERTISING CONDUCTED BY IT NETWORK INC A CLOSELY HELD DALLAS COMPANY THAT PROVIDES INTERACTIVE INFORMATION SERVICES VIA TELEPHONE IN 44 US CITIES IT IS TESTING THE INTERACTIVE CHANNEL IN 150 CABLE HOMES IN DENTON TEXAS THE INTERACTIVE CHANNEL TRANSMITS AUDIO AND STILLPHOTOGRAPHIC IMAGES TO CONSUMERS VIA EXISTING CABLE AND TELEPHONE LINES CURRENT PROGRAMMING INCLUDES ONDEMAND NEWS WEATHER AND SPORTS REPORTS AS WELL AS TRAVEL INFORMATION INCLUDING AIRLINE SCHEDULES FROM OFFICIAL AIRLINE GUIDES AND HOME SHOPPING FROM THE JC PENNEY CATALOG AVIS WILL SPONSOR A SEGMENT OF THE TRAVEL GUIDE AND PROVIDE INFORMATION ABOUT CAR RENTALS AT FEATURED DESTINATIONS WE WANT TO FIND OUT WHAT TYPE OF INFORMATION CONSUMERS WANT AND IN WHAT FORM SAID MICHAEL DREXLER PRESIDENT OF BOZELL'S BJK&E MEDIA UNIT DO THEY WANT STRAIGHT INFORMATION OR ENTERTAINMENT BJK&E MEDIA HANDLES AVIS'S YELLOW PAGES ADVERTISING ACCOUNT SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES CREATES AVIS'S GENERAL MEDIA ADVERTISING TWO OTHER AGENCIES ALSO ARE PARTICIPATING IN THE TEST YOUNG & RUBICAM'S WUNDERMAN CATO JOHNSON WORLDWIDE AND FOOTE CONE & BELDING COMMUNICATIONS THEY DECLINED TO SAY WHICH OF THEIR CLIENTS ARE INVOLVED ACCOUNT DELL COMPUTER CORP AUSTIN TEXAS TAPPED LOWE DIRECT A UNIT OF INTERPUBLIC GROUP'S LOWE GROUP FOR A NEW 10 MILLION TO 12 MILLION DIRECTRESPONSE AND DATABASE MARKETING ACCOUNT DELL'S GENERAL MEDIA ADVERTISING ACCOUNT AT SAN FRANCISCO SHOP GOLDBERG MOSER O'NEILL IS UNAFFECTED DELL SAID VIDEO NEWS MEDIALINK A SATELLITE DISTRIBUTOR OF VIDEONEWS RELEASES SAID THE MOST POPULAR VNR IN 1993 WAS ABOUT THE DIET PEPSISYRINGE AFFAIR PART OF A SERIES PEPSICO INC SENT TO TELEVISION STATIONS LAST JUNE FOR USE IN NEWS BROADCASTS ABOUT THE HOAX OTHER POPULAR ADVERTISERRELATED VNRS COVERED SONY CORP'S LAST ACTION HERO PEPSI ADS STARRING SHAQUILLE O'NEAL AND MCDONALD'S CORP'S SUPER BOWL ADVERTISING AND THE 25TH ANNIVERSARY OF THE BIG MAC FCB FOOTE CONE & BELDING COMMUNICATIONS OF CHICAGO REPORTED NET INCOME OF 12 MILLION OR 106 A SHARE IN THE FOURTH QUARTER OF 1993 COMPARED WITH 65 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER QUARTER FOR THE YEAR FOOTE CONE REPORTED PROFIT OF 257 MILLION OR 230 A SHARE UP 18 FROM 217 MILLION OR 2 A SHARE IN 1992 9402170017 940217 VOTERS TO HOUSE SIX YEARS AND OUT BY EDWARD H CRANE MEMBERS OF CONGRESS WON'T HAVE LONG TO SAVOR THEIR FLEETING VICTORY IN A FEDERAL COURTROOM LAST WEEK AGAINST THE TERMLIMITS TIDE GIVEN THE STRONG LIKELIHOOD THAT THE SUPREME COURT ULTIMATELY WILL REVERSE JUDGE WILLIAM DWYER'S RULING IN A WASHINGTON STATE CASE TERMLIMIT ACTIVISTS PLAN TO SPONSOR INITIATIVES IN MORE THAN 600 JURISDICTIONS ACROSS THE NATION NEXT YEAR THEY ARE ALL LIKELY TO PASS SINCE AMERICANS SUPPORT TERM LIMITS VIRTUALLY ANY TIME THEY ARE GIVEN AN OPPORTUNITY TO VOTE ON THE ISSUE THE ODDS ARE THAT WHEN THE 105TH CONGRESS CONVENES IN 1995 MORE THAN 40 OF THE HOUSE AND SENATE WILL BE TERMLIMITED THIS WILL INCREASE THE PRESSURE FOR A CONSTITUTIONAL AMENDMENT TO EXTEND TERM LIMITS TO THE ENTIRE CONGRESS AS THE SCARY INEVITABILITY OF TERM LIMITS SINKS IN CAREERISTS IN CONGRESS ARE TURNING TO DAMAGE CONTROL IF THERE ARE GOING TO BE LIMITS MOST INCUMBENTS REASON LET THEM BE AS LONG AS POSSIBLE AND THEREIN LIES THE REAL DRAMA IN THE TERMLIMIT DEBATE FOR WHAT VIRTUALLY EVERYONE IN CONGRESS CONSIDERS TO BE TERM LIMITS IS 12YEAR CAPS FOR BOTH THE HOUSE AND SENATE WHAT THE REST OF THE COUNTRY OVERWHELMINGLY TAKES TO BE TERM LIMITS IS SIX YEARS THREE TERMS IN THE HOUSE AND 12 YEARS TWO TERMS IN THE SENATE WHILE THERE IS A CLEAR CONSENSUS ON THE LIMIT FOR SENATORS THE DIFFERENCE OVER HOW LONG REPRESENTATIVES SHOULD BE ALLOWED TO SERVE IS A FUNDAMENTAL CHASM EVIDENCE THAT MOST PEOPLE STRONGLY PREFER THE SHORTER LIMIT FOR THE HOUSE IS ABUNDANT NATIONAL POLLS SHOW A PLURALITY OF AMERICANS FAVOR JUST FOUR YEARS AND A LARGE MAJORITY SIX YEARS OR LESS 12 YEARS ALMOST ALWAYS SCORES IN SINGLE DIGITS A MAJORITY OF THE 15 STATES THAT ALREADY HAVE LIMITED THE TERMS OF THEIR CONGRESSIONAL DELEGATIONS HAVE OPTED FOR SIXYEAR CAPS THE SIGNIFICANCE OF THE SIXYEAR VS 12YEAR DEBATE LIES IN THE FOUNDERS' BELIEF IN A CITIZEN LEGISLATURE IF DEMOCRACY IS TO WORK THE FOUNDERS BELIEVED LEGISLATORS HAVE TO BE OF THE PEOPLE REPRESENTING THE INTERESTS OF WHAT WE NOW REFER TO AS THE PRIVATE SECTOR TO TURN THE HOUSE INTO A CITIZEN LEGISLATURE TO MAKE IT A TRUE HOUSE OF REPRESENTATIVES WE MUST ATTRACT PEOPLE WHO PREFER TO SPEND THEIR PRODUCTIVE LIVES IN THE PRIVATE SECTOR AND WHO VIEW THEIR TIME IN WASHINGTON AS A LEAVE OF ABSENCE FROM THEIR REAL CAREERS AS IT IS NOW THESE PEOPLE LOOK AT THE PROSPECT OF RUNNING AND RECOGNIZE FIRST THAT THE ODDS OF BEATING AN INCUMBENT ARE SMALL AND SECOND THAT EVEN IF YOU DO WIN IT WILL BE A VERY VERY LONG TIME BEFORE YOUR OPINION COUNTS FOR ANYTHING UNDER THE SENIORITY SYSTEM SINCE MOST PEOPLE AREN'T WILLING TO BUCK THOSE ODDS OUR BALLOTS ARE CLOGGED WITH CAREER POLITICIANS AND WOULDBE CAREERISTS SERIOUS TERM LIMITS SIXYEAR LIMITS WOULD SOLVE THAT PROBLEM WITH SIXYEAR CAPS IN THE HOUSE A CITIZENLEGISLATURE CULTURE WOULD DEVELOP IN SHORT ORDER IN SUCH AN ENVIRONMENT CONFLICTS CAUSED BY POLITICAL AMBITION WOULD BE MINIMIZED AND A MORE COOPERATIVE SPIRIT OF REASONED DISCOURSE WOULD BE POSSIBLE CATERING TO SPECIAL INTERESTS WOULD BECOME LESS ESSENTIAL TO THE LEGISLATIVE PROCESS ALREADY IN CALIFORNIA WHERE A SIXYEAR LIMIT IN THE STATE ASSEMBLY TOOK HOLD IN 1992 THERE IS EVIDENCE OF THIS CHANGE TAKING PLACE OF THE 27 FRESHMEN IN THE ASSEMBLY ONLY ONE IS A FORMER LEGISLATIVE AIDE THE MAJOR STEPPING STONE TO THE ASSEMBLY IN PRIOR YEARS ALMOST TO A PERSON THE LOS ANGELES TIMES REPORTS THE NEWCOMERS TALK OF CHANGING THE STATUS QUO OF COOPERATION OF SIDESTEPPING OLD POLITICAL MINEFIELDS OF IDEALISM SOME WILL OBJECT THAT SUCH A CULTURE IN THE HOUSE WOULD COST US OUR MOST EXPERIENCED LEGISLATORS BUT IT IS AFTER ALL THE EXPERIENCED LEGISLATORS WHOSE HANDIWORK HAS GIVEN US THE BUDGET DEFICIT THE SAVINGSANDLOAN DEBACLE AND AN ENDLESS PROCESSION OF TAX HIKES SO WHILE THERE IS MUCH PUFFING OF CHESTS BY THE HUNDRED OR SO HOUSE MEMBERS WHO HAVE SIGNED ONTO GOP REP BILL MCCOLLUM'S DISCHARGE PETITION FOR HIS 12 AND 12 TERMLIMITS BILL THERE IS DEAFENING SILENCE AMONG THE MILLIONS OF AMERICANS WHO DESIRE REAL TERM LIMITS NOT UNEXPECTEDLY HOUSE HEARINGS ON TERM LIMITS LAST NOVEMBER THE FIRST EVER ALLOWED BY THE DEMOCRATIC LEADERSHIP DIDN'T DEAL WITH THIS DEBATE BETWEEN THE PEOPLE AND THE CONGRESS BETWEEN SIX YEARS AND 12 YEARS BUT THAT IS THE REAL ISSUE TWELVE YEARS MEANS CONTINUED SENIORITY IN COMMITTEE CHAIRMANSHIPS AND A CONTINUATION OF INCUMBENTS' INSURMOUNTABLE ADVANTAGE IN ELECTIONS SIX YEARS MEANS A CITIZEN LEGISLATURE AND THE PEOPLE REGAINING CONTROL OF CONGRESS THE GOOD NEWS IS THAT A SIXYEAR LIMIT HAS A SERIOUS PROPONENT IN THE HOUSE REP JIM INHOFE R OKLA WILL SOON INTRODUCE A BILL CALLING FOR SIXYEAR LIMITS IN THE HOUSE MANY POPULIST GROUPS ARE RALLYING AROUND MR INHOFE'S INITIATIVE A FEW MONTHS AGO REP ERNEST ISTOOK R OKLA GAVE US A PREVIEW OF WHAT FORM OPPOSITION TO SIXYEAR LIMITS MIGHT TAKE APPEALING FOR SYMMETRY IN CONGRESS HE SAID THAT THE SIX AND 12 PROPOSAL IS LOPSIDED UNTIL SUCH TIME AS THE 12YEAR LIMIT CAN MUSTER MORE THAN SINGLEDIGIT SUPPORT FROM THE AMERICAN PEOPLE HOWEVER SUPPORTERS OF A CITIZEN LEGISLATURE LOPSIDED OR NOT WILL BE LOOKING TO SEE WHO SIGNS THE INHOFE PETITION TO LIMIT HOUSE MEMBERS TO SIX YEARS MR CRANE IS PRESIDENT OF THE CATO INSTITUTE IN WASHINGTON 9402170016 940217 TECHNOLOGY HEWLETTPACKARD POSTS 41 PROFIT RISE FOR 1ST QUARTER CITING STRONG DEMAND BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO HEWLETTPACKARD CO SAID PROFIT ROSE 41 FOR ITS FISCAL FIRST QUARTER TOPPING MOST ANALYSTS' EXPECTATIONS THE PALO ALTO CALIF COMPANY SEEING STRONG DEMAND FOR PRINTERS AND OTHER COMPUTERRELATED PRODUCTS SAID NET INCOME FOR THE QUARTER ENDED JAN 31 ROSE TO 368 MILLION OR 142 A SHARE FROM 261 MILLION OR 103 A SHARE A YEAR EARLIER REVENUE ROSE 24 TO 568 BILLION FROM 457 BILLION THOUGH COMPANY EXECUTIVES AND ANALYSTS NOTED SOME SOUR NOTES HEWLETT'S RECENT STRING OF SOLID QUARTERS IS THE ENVY OF OTHER BIG COMPUTER MAKERS HP IS REALLY KIND OF BREAKING AWAY FROM THE REST OF THE COMPUTER PACK ARGUED STEVEN MILUNOVICH AN ANALYST AT MORGAN STANLEY THE COMPANY'S STOCK JUMPED 3625 OR 4 TO 89125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ANALYSTS HAD EXPECTED EARNINGS PER SHARE OF 110 TO 143 THE YEAR IS OFF TO A GOOD START SAID LEWIS PLATT HEWLETT'S CHIEF EXECUTIVE OFFICER IN PREPARED REMARKS HE SAID THE COMPANY WAS PLEASED WITH ITS COSTCUTTING EFFORTS PROFITABILITY AND GROWTH BUT SAID ECONOMIC CONDITIONS REMAIN CLOUDY WE REMAIN CAUTIOUS IN LIGHT OF UNEVEN GROWTH ACROSS OUR BUSINESSES AND AN UNCERTAIN ECONOMIC ENVIRONMENT IN EUROPE AND JAPAN HE SAID HEWLETT SAID ITS ORDERS GREW 18 TO 61 BILLION FROM 52 BILLION ORDERS WERE PARTICULARLY STRONG IN THE COMPANY'S COMPUTER BUSINESS WHICH GREW 23 THE COMPANY CITED DEMAND FOR ITS INKJET PRINTERS LOCALAREA NETWORKING HARDWARE MULTIUSER COMPUTERS AND COMPUTER WORKSTATIONS SOME ANALYSTS WERE CAUTIOUS ABOUT ASSUMING THAT HEWLETT'S GROWTH CAN CONTINUE AT THIS PACE DAVID WU WHO FOLLOWS THE COMPANY FOR SG WARBURG NOTED THAT THE COMPANY'S FIRST QUARTER HAS BEEN ESPECIALLY STRONG IN RECENT YEARS PEOPLE UNDERESTIMATE THE SEASONALITY OF THE COMPANY HE ARGUED BARRY WILLMAN AN ANALYST WITH GOLDMAN SACHS SAID GROSS PROFIT MARGINS DECLINED TO 389 FROM 391 IN THE FOURTH QUARTER EXCLUDING ONETIME ITEMS HE NOTED THAT THE COMPANY'S INVENTORIES HAVE RISEN FOR SEVEN CONSECUTIVE QUARTERS AND STOOD AT 4 BILLION IN THE FIRST QUARTER UP FROM 37 BILLION IN THE PREVIOUS QUARTER INVENTORIES ARE A BIG PROBLEM MR WILLMAN SAID PRINTERS CONTRIBUTED TO THE INVENTORY GROWTH MR WILLMAN EXPECTS THE COMPANY TO SHIP NEW INKJET PRINTERS ON MARCH 1 THAT WILL INCLUDE MODELS WITH ENHANCED COLOR INVENTORIES MAY REFLECT SOME UNITS ALREADY SHIPPED TO HEWLETT'S DEALERS TO PREPARE FOR THAT LAUNCH HE SAID 9402170015 940217 LAW TEXAS IS SUING FIVE FASTFOOD CHAINS SEEKING BETTER PROTECTION FROM SMOKING BY ROBERT FRANK STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS ATTORNEY GENERAL FILED LAWSUITS AGAINST FIVE LARGE FASTFOOD CHAINS DEMANDING BETTER PROTECTION FOR CHILDREN AGAINST SECONDHAND SMOKE THE MOVE WHICH FOLLOWS MONTHS OF WRANGLING AMONG ATTORNEYS GENERAL IN SEVERAL STATES AND THE FASTFOOD INDUSTRY STEPS UP PRESSURE ON THE COMPANIES TO BAN SMOKING FOLLOWING FINDINGS THAT SECONDHAND SMOKE CAUSES CANCER THE COMPANIES NAMED IN THE SUIT ARE MCDONALD'S CORP KFC TACO BELL LONG JOHN SILVER'S RESTAURANTS INC AND BURGER KING TEXAS ATTORNEY GENERAL DAN MORALES SAID NONSMOKING SECTIONS DON'T SUFFICIENTLY PROTECT CUSTOMERS FROM ENVIRONMENTAL SMOKE THE SUIT FOCUSES SPECIFICALLY ON CHILDREN WHO MR MORALES CLAIMS ARE TARGETED BY THE FASTFOOD CHAINS'S ADVERTISING AND ARE MORE SUSCEPTIBLE TO SMOKE HAZARDS THE FASTFOOD CHAINS AND THE TOBACCO INSTITUTE SAID THE SUIT CAME AS A SURPRISE IN LIGHT OF RECENT TALKS BETWEEN THE INDUSTRY AND A COALITION OF 16 ATTORNEYS GENERAL TO RESOLVE THE ISSUE THE GROUP IS EXPECTED TO ISSUE ITS FINAL RECOMMENDATIONS TO THE INDUSTRY IN THE NEXT MONTH OR TWO ARBY'S INC A UNIT OF TRIARC CO AND MINNEAPOLISBASED INTERNATIONAL DAIRY QUEEN INC HAVE ALREADY ANNOUNCED PLANS TO BECOME SMOKEFREE IN ANTICIPATION OF THE REPORT THE SUIT COMES AMID GROWING PRESSURE TO BAN SMOKING IN PUBLIC PLACES LAST YEAR THE ENVIRONMENTAL PROTECTION AGENCY CONCLUDED THAT PASSIVE TOBACCO SMOKE IS A HUMAN LUNG CARCINOGEN AND IS RESPONSIBLE FOR ABOUT 3000 LUNG CANCER DEATHS EACH YEAR IN THE US THE REPORT SAID THAT FOR YOUNG CHILDREN EXPOSURE TO PASSIVE SMOKE INCREASES RISK OF BRONCHITIS PNEUMONIA ASTHMA AND DISTURBANCES IN THE MIDDLE EAR AND LUNGS IN HIS SUIT MR MORALES SEEKS A TEMPORARY RESTRAINING ORDER AGAINST THE COMPANIES TO PREVENT THEM FROM ADVERTISING SMOKEFREE EATING AREAS HE SAID THE RESTAURANTS SHOULD EITHER BAN SMOKING OR BUILD SEPARATE VENTILATION SYSTEMS FOR SMOKING AND NONSMOKING AREAS WITH SMOKING BANNED IN MOST MOVIE THEATERS PLANES CHURCHES AND WORKPLACES HE SAID DINERS CAN EASILY ACCEPT A BAN ON SMOKING IN FASTFOOD RESTAURANTS WHERE THE AVERAGE STAY IS 20 MINUTES REPRESENTATIVES AT KFC AND TACO BELL BOTH UNITS OF PEPSICO INC OF PURCHASE NY AND AT BURGER KING A UNIT OF GRAND METROPOLITAN PLC OF LONDON SAID THEY WERE SURPRISED BY THE ACTION GIVEN THEIR PREVIOUS TALKS WITH STATE OFFICIALS BOTH TACO BELL AND BURGER KING SAID THEY HADN'T SEEN THE SUIT MCDONALD'S BASED IN OAK BROOK ILL ALSO SAID IT HADN'T SEEN THE SUIT A SPOKESMAN AT LONG JOHN SILVER'S BASED IN LEXINGTON KY SAID HE HADN'T SEEN THE SUIT BUT THAT HE BELIEVES IT IS WITHOUT MERIT 9402170014 940217 INTERNATIONAL ERICSSON UNIT GETS CONTRACT STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP AB LM ERICSSON SAID ITS JOINT VENTURE COMPANY IN INDIA BIRLA ERICSSON OPTICAL LTD RECEIVED ITS FIRST ORDER VALUED AT THE EQUIVALENT OF 50 MILLION SWEDISH KRONOR 62 MILLION BIRLA ERICSSON FORMED IN 1993 WILL SUPPLY FIBER OPTIC CABLE TO INDIA'S DEPARTMENT OF TELECOM 9402170013 940217 WHAT'S NEWS BUSINESS AND FINANCE A JAPANESE TRADE NEGOTIATOR ACCUSED THE US OF BAD FAITH AND A BETRAYAL OF TRUST IN GATT TALKS OVER TARIFFS IN GENEVA SENDING USJAPANESE TRADE RELATIONS SPIRALING FURTHER DOWNWARD THE ACCUSATIONS WHICH WERE ACCOMPANIED BY THREATS OF RETALIATION REPRESENT A SIGNIFICANT ESCALATION OF THE JAPANESE RESPONSE TO A US MOVE TOWARD TRADE SANCTIONS AFTER BILATERAL TALKS FAILED LAST WEEK US SURGICAL IS RENEGOTIATING LOANS WITH LENDERS AND IS RETAINING ADVISERS TO LOOK FOR EQUITY INVESTORS THE ANNOUNCEMENT FOLLOWED A JURY'S DECISION THAT JOHNSON & JOHNSON DIDN'T INFRINGE ON A US SURGICAL PATENT TRADING IN THE FIRM'S SHARES WAS HALTED BUT THE STOCK LATER CLOSED DOWN 21 HOUSING STARTS PLUNGED 176 IN JANUARY AS THE BIG FREEZE IN MUCH OF THE NATION CHILLED HOMEBUILDING MACY IS DISCUSSING WITH GE CAPITAL THE POSSIBILITY OF A SIGNIFICANT INVESTMENT IN MACY'S REORGANIZATION PLAN A PERSON CLOSE TO THE RETAILER SAID A LAWSUIT AGAINST GE CLAIMING A CONSPIRACY TO FIX INDUSTRIALDIAMOND PRICES WAS DROPPED BY A FORMER OFFICIAL WHO RETRACTED ALL ALLEGATIONS AMERICAN EXPRESS PLANS TO OFFER COBRANDED CARDS SAYING ITS SHIFT TOWARD LINKING WITH PROVIDERS OF GOODS OR SERVICES TO SPONSOR CARDS WILL LEAD TO 10 TO 15 NEW CONSUMER CHARGE AND CREDIT CARDS IN THE NEXT FEW YEARS HEWLETTPACKARD'S PROFIT ROSE 41 FOR ITS FIRST QUARTER TOPPING MOST ANALYSTS' EXPECTATIONS THE COMPANY'S STOCK JUMPED 3625 OR 4 TO 89125 FIGGIE IS SEEKING TO BORROW AN EXTRA 60 MILLION ABOVE THE 150 MILLION CREDIT LINE IT HAS ALREADY EXHAUSTED ONE PERSON CLOSE TO THE SITUATION SAID BOEING AND MCDONNELL DOUGLAS MAY FACE A ROUND OF COMPETITION OVER THE MIX OF AIRCRAFT TO BE DELIVERED IN A 6 BILLION SAUDI ARABIAN JET ORDER FINANCIAL WOES AT A CALIFORNIA INSURANCE FUND SHOW A POTENTIAL PROBLEM LURKING IN THE TAXEXEMPT MARKETS MORE NONPROFIT HOSPITALS ARE EXPECTED TO DEFAULT ON BOND OBLIGATIONS AS THEY STRUGGLE TO FIND ALLIANCES AMID PRESSURE FROM MANAGEDCARE PROVIDERS WESTINGHOUSE AGREED TO SELL ITS WESTINGHOUSE ELECTRIC SUPPLY UNIT TO CLAYTON DUBILIER FOR 340 MILLION DISNEY IS WEIGHING THE START OF A CRUISE LINE PERHAPS BUYING TWO SHIPS AND OFFERING TOURS TIED TO ITS PARKS THE CABLE INDUSTRY IS LOBBYING THE FCC SAYING RATE CUTS WOULD THREATEN THE INFORMATION SUPERHIGHWAY IBM REORGANIZED THE MANAGEMENT OF ITS EUROPEAN PC BUSINESS ELIMINATING FOUR TOP POSITIONS AT THE UNIT THE MUTUALFUND INDUSTRY SET UP A PANEL TO REVIEW COMPANY RULES ON PERSONAL TRADING BY PORTFOLIO MANAGERS BRITISH STEEL AND 15 OTHER EUROPEAN STEEL COMPANIES WERE FINED BY THE EUC ON CHARGES OF PRICE FIXING AND COLLABORATION IN THE MARKET FOR STEEL BEAMS BONDS LEHMAN BROTHERS TREASURY INDEX 552847 OFF 221 COMMODITIES OIL 1393 A BARREL OFF 13 CENTS DOW JONES FUTURES INDEX 14658 UP 095 SPOT INDEX 13066 UP 016 DOLLAR 10380 YEN UP 010 17233 MARKS OFF 00072 9402170012 940217 CREDIT CARDS AMERICAN EXPRESS EMBRACES COBRANDS BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN EXPRESS CO LAGGING IN THE CREDITCARD WARS IS PREPARING TO DO THE UNTHINKABLE COMBINE ITS NAME WITH OTHER CORPORATE NAMES TO OFFER COBRANDED CARDS FOR YEARS AMERICAN EXPRESS HAS STOOD ALOOF AS ITS COMPETITORS MASTERCARD AND VISA SCRAMBLED TO SIGN UP COMPANIES TO OFFER CREDIT CARDS LIKE THE GENERAL MOTORS CARD AND THE AMERICAN AIRLINES CARD BUT NOW AS THE COMPETITION AMONG ISSUERS INTENSIFIES THE INDUSTRY GIANT IS ABOUT TO EMBARK ON A NEW STRATEGY THAT EMBRACES COBRANDING COMPANY OFFICIALS SAY THE NEW APPROACH WILL LEAD TO THE INTRODUCTION OF 10 TO 15 NEW CONSUMER CHARGE AND CREDIT CARDS IN THE NEXT FEW YEARS THE EXECUTIVES ALSO HOPE THAT AMERICAN EXPRESS WILL MOVE AWAY FROM ITS TRADITIONAL EMPHASIS ON CHARGE CARDS TO BECOME A MAJOR PLAYER IN THE MORE LUCRATIVE CREDITCARD BUSINESS CREDIT CARDS UNLIKE CHARGE CARDS ALLOW THE USER TO CARRY AN OUTSTANDING BALANCE FROM MONTH TO MONTH AMERICAN EXPRESS ARROGANTLY BELIEVED THAT IT WAS INVULNERABLE TO COBRANDED CARDS SAID JOANNE BLACK A MARKETING CONSULTANT WHO HAS WORKED AT BOTH AMERICAN EXPRESS AND MASTERCARD BUT NOW THE HANDWRITING IS ON THE WALL IF THEY DON'T TAKE ADVANTAGE OF STRATEGIC ALLIANCES OF COBRANDING THEIR BUSINESS WILL DWINDLE TO NOTHING TO ISSUE A COBRANDED CARD A CARD ISSUER JOINS UP WITH A PROVIDER OF GOODS OR SERVICES TO SPONSOR A CARD THAT PROVIDES USERS WITH SOME INCENTIVE TO CHARGE PURCHASES ON THE CARD CONSUMERS USING CITICORP'S AADVANTAGE CARD OFFERED IN CONJUNCTION WITH AMERICAN AIRLINES EARN FREQUENTFLIER POINTS AT THE RATE OF ONE MILE FOR EVERY DOLLAR THEY CHARGE ON THE CARD AMERICAN EXPRESS ALREADY OFFERS A COBRANDED CARD WITH AMERICAN TELEPHONE & TELEGRAPH CO AND IT HAS CARDS LINKED TO BROKERAGE ACCOUNTS AT SMITH BARNEY AND LEHMAN BROTHERS BUT OTHERWISE IT HAS IGNORED THE COBRANDING RUSH THAT HAS LED TO CARDS BEARING NAMES LIKE APPLE GENERAL MOTORS AND SHELL WE ARE MOVING AWAY FROM A ONEPRODUCT ORIENTATION SAID KENNETH I CHENAULT THE HEAD OF AMERICAN EXPRESS'S DOMESTIC CREDIT AND CHARGECARD DIVISION THE ONESIZEFITSALL APPROACH DOESN'T WORK ANYMORE MR CHENAULT SAID THE COMPANY HAS ALREADY MET WITH A NUMBER OF POTENTIAL COBRANDING PARTNERS INCLUDING MANUFACTURERS RETAILERS AND TRAVEL PROVIDERS AMERICAN EXPRESS WOULDN'T IDENTIFY THE PARTIES OUR CHALLENGE HERE IS TO ALIGN WITH PARTNERS WHERE THE COMBINATION OF BRAND NAMES IS LOGICAL AND REINFORCING HE SAID WE ARE OPTIMISTIC BASED ON PRELIMINARY PARTNER DISCUSSIONS THAT AMERICAN EXPRESS CAN BE A PREFERRED ISSUER OF COBRANDED CARDS BUT ANALYSTS SAY AMERICAN EXPRESS HAS ALREADY LET SOME OF THE BEST COBRANDING OPPORTUNITIES GET AWAY WITH MORE THAN 100 COBRANDED CARDS ALREADY IN THE MARKETPLACE A LOT OF THE BEST NAMES ARE ALREADY TAKEN SAID DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A CREDITCARD INDUSTRY NEWSLETTER THERE JUST AREN'T THAT MANY GENERAL MOTORS AND FORDS OUT THERE BOTH EXXON AND CHRYSLER TWO OF THE MOST ATTRACTIVE NAMES THAT REMAIN AVAILABLE ARE BELIEVED TO BE IN DISCUSSIONS WITH CARD ISSUERS ALTHOUGH MR CHENAULT SAID THE NEW CARDS WILL INCLUDE COBRANDED CARDS THAT CARRY THE NAMES OF PRODUCT PROVIDERS AS WELL AS THE AMERICAN EXPRESS NAME ANALYSTS SUGGEST IT MAY BE SOME TIME BEFORE SUCH CARDS HIT THE MARKET THEY WANT TO PLAY UP THE BENEFITS THAT THEY CAN DERIVE FROM COBRANDING PARTNERS BUT I DON'T THINK THEY ARE GOING TO RUSH TO PUT NAMES OF OTHER COMPANIES ON CARDS SAID GUY MOSZKOWSKI AN ANALYST WITH SANFORD C BERNSTEIN AMERICAN EXPRESS'S INTERNATIONAL CARD CHIEF R CRAIG HOENSHELL RECENTLY TOLD A GROUP OF SECURITIES ANALYSTS THAT SOME OF THE NEW CARDS MAY BE SIMILAR TO THE COMPANY'S MEMBERSHIP MILES CARD WHICH OFFERS HOLDERS TRAVEL REWARDS ON A NUMBER OF AIRLINES THE NEW CARDS MAY ENABLE USERS TO EARN FREE TRAVEL AS WELL AS DISCOUNTS FOR A WIDE VARIETY OF PRODUCTS THIS APPROACH MR HOENSHELL SAID WOULDN'T CHANGE THE APPEARANCE OF THE STANDARD AMERICAN EXPRESS CARD HE SAID USERS WOULD BE PROVIDED WITH A BANK OF REWARD POINTS WHERE WE CAN OFFER REDEMPTION OPTIONS BASED ON THE CUSTOMER'S BEHAVIOR AND LIFESTYLE RATHER THAN DISCOUNTS FOR A SINGLE PRODUCT CARDUSER AWARDS MAY ALSO BE CUSTOMIZED FOR INDIVIDUAL RETAILERS PROVIDING AMERICAN EXPRESS WITH AN OPPORTUNITY TO ENHANCE ITS RELATIONSHIPS WITH STORE OWNERS BY HELPING THEM TARGET SPECIFIC CONSUMERS A MARKET TEST NOW BEING CONDUCTED IN BRITAIN SUGGESTS JUST HOW HIGHLY SEGMENTED AMERICAN EXPRESS'S NEW APPROACH MAY BECOME IN THE EXPERIMENT WHICH INVOLVES CARD USERS WHO SHOP IN HARRODS AMERICAN EXPRESS IDENTIFIED CUSTOMERS WHO PURCHASE FOOD IN THE GIANT DEPARTMENT STORE'S FOOD HALL BUT WHO HAVE NEVER BOUGHT A BOTTLE OF WINE FROM THE NEARBY WINE DEPARTMENT BY OFFERING THOSE CARD MEMBERS A DISCOUNT ON WINE PURCHASES MR HOENSHELL SAID AMERICAN EXPRESS WAS ABLE TO HELP HARROD'S TO BETTER EXPLOIT ITS EXISTING CUSTOMER BASE WALL STREET ANALYSTS SAY AMERICAN EXPRESS HAS BEEN SLOW TO RESPOND TO INCREASING SEGMENTATION OF THE CARD INDUSTRY IN PART BECAUSE OF ITS OVERCONFIDENCE IN THE AMERICAN EXPRESS BRAND NAME BUT ALSO BECAUSE OF CORPORATE PRIORITIES SUCH AS THE DISPOSITION OF ITS SHEARSON AND LEHMAN BROTHERS SUBSIDIARIES NOW THAT CHARGE AND CREDIT CARDS ARE CLEARLY THE COMPANY'S CORE BUSINESS ANALYSTS SAY THAT A GROWING RESPONSIVENESS TO COMPETITIVE PRESSURES IS PROBABLY INEVITABLE THEY KNOW THAT THE AMERICAN EXPRESS CARD CAN'T BE A MONOLITH ANYMORE SAID JAMES HANBURY AN ANALYST WITH WERTHEIM SCHRODER IT HAS TO BE SLICED AND DICED 9402170011 940217 POLITICS & PEOPLE SHUT DOWN THE SOFTMONEY SCAM BY ALBERT R HUNT LESS THAN A MONTH BEFORE LAST NOVEMBER'S ELECTIONS THE NATIONAL RIFLE ASSOCIATIONS' POLITICAL VICTORY FUND GAVE 275000 TO THE REPUBLICAN NATIONAL COMMITTEE'S STATE ELECTION FUND IT WAS THE NRA'S FIRST CONTRIBUTION TO A NATIONAL PARTY IN 3U YEARS OVER THE NEXT FEW WEEKS THE GOP THEN PARCELED OUT A LITTLE MORE THAN THAT TO THE TWO BIGGEST RACES OF THE YEAR 200000 TO GEORGE ALLEN'S GUBERNATORIAL CANDIDACY IN VIRGINIA AND 154000 TO THE GOP EFFORT IN NEW JERSEY WAS THERE ANY CONNECTION MAYBE NOT IN THE LEGAL SENSE BUT CERTAINLY THERE WAS A DE FACTO LINK THE NRA'S UNUSUALLY BIG CONTRIBUTIONS TO THE RNC DWARFED WHAT IT GAVE TO REPUBLICANS IN VIRGINIA WHERE THERE WERE NO LIMITS ON WHAT COULD BE GIVEN AND IN NEW JERSEY WHERE THERE WERE FAIRLY STRICT LIMITS AND THESE CONTRIBUTIONS WEREN'T REVEALED TO THE PUBLIC UNTIL WELL AFTER THE ELECTION IF THE NRA HAD CONTRIBUTED THIS MONEY DIRECTLY TO THE STATE CAMPAIGNS IT WOULD HAVE BEEN PUBLIC KNOWLEDGE BY ELECTION DAY THIS IS RELEVANT BECAUSE BY OCTOBER THE NRA WAS A LIABILITY TO REPUBLICANS IN BOTH STATES IN NEW JERSEY FOR EXAMPLE THE GOP GUBERNATORIAL CONTENDER CHRISTINE TODD WHITMAN A WEEK BEFORE THE ELECTION DECLARED THAT SHE HAD NEVER SOUGHT THE NRA'S ENDORSEMENT OR EVER RECEIVED MONEY FROM THE NRA I HAD ONLY UNDERSTOOD THAT THEY WOULD NOT BE A PART OF THE RACE THERE IS NO INDICATION THAT MS WHITMAN OR MR ALLEN KNOW ABOUT THE NRA'S CIRCUMVENTION AND IN NEW JERSEY TO COMPLY WITH STATE LAW THE MONEY TECHNICALLY WAS FUNNELED FOR GETOUTTHEVOTE EFFORTS FOR LEGISLATIVE CANDIDATES THUS RATHER THAN GIVE MONEY DIRECTLY IN THESE STATES AND RISK POLITICAL EMBARRASSMENT THE NRA CHOSE TO LAUNDER THE CONTRIBUTIONS THROUGH THE RNC THIS IS ONLY THE LATEST IN A SERIES OF ABUSES IN SOCALLED SOFT MONEY OR FUNDS THAT ARE NOT SUBJECT TO CAMPAIGN CONTRIBUTION RULES A REVIEW OF THE FINANCIAL REPORTS COVERING THE LAST HALF OF 1993 REVEALS THIS ISN'T THE RNC'S ONLY SCAM THERE'S ALSO 200000 OF RECEIPTS LISTED FROM THE NATIONAL POLICY FORUM DURING THE LAST HALF OF THE YEAR PARTY AND FORUM OFFICIALS EXPLAIN THIS ACTUALLY WAS A LOAN REPAYMENT THE FORUM IS A TAX EXEMPT FOUNDATION SET UP BY RNC CHAIRMAN HALEY BARBOUR TO DEVELOP IDEAS AND ISSUES FOR THE PARTY IT ALSO IS AN ATTEMPT TO AVOID CAMPAIGN FINANCE LAWS BY ESTABLISHING A NEW RUSE A PARTYLAUNCHED FOUNDATION IN CASE THE CURRENT SOFTMONEY ABUSES ARE CURBED BY CONGRESS AS A FOUNDATION THE NATIONAL POLICY FORUM REFUSES TO REVEAL ITS DONORS THIS IT SAYS IS SO THE DIRECTORS MOSTLY GOP OFFICEHOLDERS WON'T HAVE THEIR IDEAGENERATING WORK AFFECTED BY THE STAIN OF MONEY INTERESTS BUT MR BARBOUR WHO REMAINS ITS CHAIRMAN AND MICHAEL BAROODY ITS PRESIDENT KNOW THE IDENTITY OF THESE SECRET CONTRIBUTORS THE PERSONABLE HALEY BARBOUR CHEERFULLY INSISTS THIS ALL IS INNOCENT THE PARTY GAVE MORE THAN 15 MILLION COMBINED TO THE NEW JERSEY AND VIRGINIA RACES AND NOT ONLY WAS THERE NO CONNECTION WITH THE NRA CONTRIBUTIONS HE'S NOT SURE IF HE EVEN REMEMBERS THEM IN SHORT THE RNC CHAIRMAN SAYS HE MAY NOT HAVE KNOWN ABOUT A HUGE CONTRIBUTION FROM A NOTORIOUSLY CONTROVERSIAL INTEREST GROUP AND AS HEAD OF THE RNC HE LAUNCHED A FOUNDATION BUT IT'S MERELY A NONPARTISAN IDEA FACTORY SURE AND WHITEWATER IS PRIMARILY A VACATION SPOT THESE ARE POLITICAL HUSTLES PURE AND SIMPLE THE DEMOCRATS HOWEVER DON'T COME OUT WITH CLEAN HANDS EITHER TAKE THE 250000 CONTRIBUTION LAST DEC 10 TO THE DNC'S FUND TO PROMOTE HEALTH LEGISLATION IT WAS FROM CARL LINDNER THE CHIEF EXECUTIVE OFFICER OF AMERICAN FINANCIAL CORP A BIG CINCINNATIBASED CONGLOMERATE WHOSE INTERESTS RANGE FROM INSURANCE AND BANKING TO BROADCASTING AND CHIQUITA BANANAS MR LINDNER WHO WAS THE INFAMOUS CHARLES KEATING'S MENTOR HAS LONG PLAYED THE INFLUENCEPEDDLING GAME BUT HE HAS MAINLY WORKED THE REPUBLICAN SIDE OF THE AISLE FROM 1988 TO 1992 HE AND HIS COMPANY GAVE THE GOP MORE THAN 900000 OF SOFTMONEY CONTRIBUTIONS AND HE WAS A MAJOR GEORGE BUSH FUNDRAISER HE HAS BEEN ACTIVE IN CONSERVATIVE CAUSES OPPOSING THE CONTROVERSIAL MAPPLETHORPE ART EXHIBIT IN CINCINNATI AND FIGHTING PORNOGRAPHY IT'S UNLIKELY THAT MR LINDNER SUDDENLY HAS SEEN THE IDEOLOGICAL LIGHT AT AGE 74 INSTEAD HE'S SEEN WHO TURNS ON THE LIGHT IN THE OVAL OFFICE AND IS TRYING TO BUY INFLUENCE THERE HE WON'T RETURN PHONE CALLS TO GIVE HIS OWN EXPLANATION THESE ARE HARDLY ISOLATED INCIDENTS THE LATEST FEDERAL ELECTION COMMISSION FILINGS ARE FULL OF EXAMPLES OF HOW ROTTEN THE SYSTEM IS AND OF CONTRIBUTORS FAR MORE INTERESTED IN INFLUENCE OR ACCESS THAN PRINCIPLES INTEGRATED HEALTH SERVICES A MARYLAND HEALTH CARE AND NURSING HOME COMPANY GAVE 100000 TO THE REPUBLICAN NATIONAL COMMITTEE TWO DAYS AFTER LAST NOVEMBER'S ELECTIONS WHEN THE GOP SEEMED TO BE RIDING HIGH BY DECEMBER HOWEVER PRESIDENT CLINTON HAD BOUNCED BACK IN THE POLLS INTEGRATED HEALTH SERVICES THEN GAVE THE DEMOCRATS 115000 THE GODFATHER OF PLAYING BOTH SIDES HAS BEEN DWAYNE ANDREAS THE HEAD OF ARCHERDANIELSMIDLAND CO WHICH LOVES THE TAXPAYER'S HELP IN PROMOTING ETHANOL DURING THE 1980S MR ANDREAS'S LARGESSE WAS MOSTLY FOCUSED ON THE REPUBLICANS LAST YEAR THE EMPHASIS SWITCHED MR ANDREAS'S WIFE GAVE THE DEMOCRATS 55000 IN THE LAST HALF OF LAST YEAR AND HIS COMPANIES DOLED OUT MORE THAN 100000 TO THE DNC THIS SYSTEM OF CAMPAIGN FINANCING IS TRULY VENAL SOFTMONEY CONTRIBUTIONS EXEMPT FROM THE NORMAL FEDERAL RESTRICTIONS INITIALLY WERE INTENDED FOR A NOBLE PURPOSE PARTY BUILDING THROUGH SUCH ACTIVITIES AS GETOUTTHEVOTE DRIVES INSTEAD THEY'VE TURNED INTO MECHANISMS FOR COVERT INFLUENCEPEDDLING MONEYLAUNDERING AND EVADING THE INTENT OF THE CAMPAIGN FINANCE LAWS IT'S IMPERATIVE THAT CONGRESS THIS SESSION NOT ONLY ENACT THE SENATEPASSED CURBS ON SOFTMONEY CONTRIBUTIONS BUT TOUGHEN THOSE PROVISIONS TO HANDLE SOME OF THE ABUSES EVIDENT THIS YEAR FOR AS FRED WERTHEIMER PRESIDENT OF COMMON CAUSE WHICH HAS BEEN BATTLING THE PERVASIVE AND PERNICIOUS INFLUENCE OF SOFT MONEY FOR YEARS SAYS IF WE WANT TO CLEAN UP CORRUPTION IN WASHINGTON THE SOFTMONEY SCAM HAS TO BE SHUT DOWN 9402170010 940217 COMMODITIES HEATING AND CRUDE OIL PRICES ARE DRIVEN DOWN AFTER CONTINUED REPORTS OF WARMER WEATHER BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL CRUDE AND HEATING OIL PRICES TUMBLED DRIVEN LOWER ON CONTINUED REPORTS OF UNUSUALLY WARM WEATHER ACCORDING TO HOWARD SCHMIDT METEOROLOGIST FOR ACCUWEATHER INC IN STATE COLLEGE PA TEMPERATURES IN THE NORTHEAST COULD TOP 60 DEGREES THIS WEEKEND EVEN AT NIGHT WE EXPECT TEMPERATURES NEAR SOME MAJOR METROPOLITAN AREAS TO REMAIN ABOVE FREEZING WHICH IS 32 DEGREES FAHRENHEIT MR SCHMIDT SAID TEMPERATURES AT THIS TIME OF THE YEAR TYPICALLY RANGE BETWEEN A LOW OF 28 DEGREES AND A HIGH OF 40 DEGREES THE WARM WEATHER WHICH IS ALREADY CAUSING A THAW IN THE NORTHEAST IS EXPECTED TO LAST THROUGH EARLY NEXT WEEK THE SPRINGLIKE WARMTH WILL BE FOLLOWED BY A COLDER SPELL BUT TEMPERATURES IN THE NORTHEAST THE WORLD'S LARGEST HEATINGOIL MARKET AREN'T EXPECTED TO AGAIN DROP TO THE SUBZERO LEVELS OF RECENT WEEKS ANYTIME SOON CRUDE OIL FOR MARCH DELIVERY FELL BY 13 CENTS A BARREL TO 1393 THE LOWEST LEVEL FOR THAT CONTRACT IN ALMOST TWO MONTHS HEATING OIL FOR MARCH FELL BY 203 CENTS A GALLON TO 4502 CENTS HEATING OIL FUTURES PRICES HAVE FALLEN HEAVILY BY ALMOST 6 CENTS A GALLON SINCE LAST FRIDAY'S SETTLEMENT GASOLINE PRICES HOWEVER ROSE SLIGHTLY YESTERDAY AS TRADERS BEGAN TO ANTICIPATE WARMER WEATHER AND AN INCREASE IN DRIVING CRUDE OIL PRICES IN THE US HAD ACTUALLY STARTED THE DAY HIGHER PROPPED UP BY SLIGHTLY BULLISH STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE LATE TUESDAY THE INSTITUTE REPORTED THAT CRUDE OIL STOCKS LAST WEEK FELL BY 43 MILLION BARRELS TO 3313 MILLION BARRELS GASOLINE STOCKS ALSO FELL TRADERS HAD EXPECTED INVENTORIES FOR BOTH OF THOSE COMMODITIES TO GROW HOWEVER DISTILLATE INVENTORIES WHICH INCLUDE STOCKS OF HEATING OIL DIDN'T DECLINE AS SHARPLY AS EXPECTED TRADERS ARE NOW SPECULATING THAT HEATING OIL DEALERS MIGHT BE SUFFICIENTLY STOCKED UP AT THIS POINT WITH THE WEATHER ISSUE DROPPING INTO THE BACKGROUND MARKET PARTICIPANTS AGAIN BEGAN TO FOCUS ON HOW THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS GOING TO DEAL WITH THE OVERSUPPLY OF OIL AT THE GROUP'S MEETING IN MARCH REMARKS BY VENEZUELAN OIL MINISTER ERWIN ARRIETA HAVE DAMPED HOPES BY TRADERS THAT OPEC MIGHT OPT TO CUT ITS OUTPUT WHEN ASKED ABOUT THE PROSPECTS OF SUCH A REDUCTION MR ARRIETA REPORTEDLY SAID TO PROCEED TO A CUT ALARMS US A LITTLE IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF WHEATFUTURES CONTRACTS FOR DELIVERY IN JULY ROSE SLIGHTLY AMID GROWING CONCERN ABOUT A DRY SPELL IN WINTER WHEAT STATES SUCH AS TEXAS AND OKLAHOMA IN TRADING AT THE KANSAS CITY BOARD OF TRADE THE WHEAT CONTRACT FOR JULY DELIVERY ROSE HALF A CENT TO SETTLE AT 34525 A BUSHEL THE WHEAT CROP IN THE SOUTHERN PLAINS IS DORMANT THIS TIME OF YEAR BUT TRADERS ARE WORRIED THAT THE DRY PATTERN MIGHT LINGER LONG ENOUGH TO STUNT THE CROP WHEN IT BEGINS GROWING THIS SPRING PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS ROSE AS CONCERN EASED ABOUT THE PROSPECTS FOR A TRADE WAR WITH JAPAN WHICH IS A MAJOR IMPORTER OF US FARM COMMODITIES ORANGE JUICE A FINAL ROUND OF SELLING RELATED TO THE DEMISE OF THE 1994 FROST SEASON PUSHED ORANGEJUICE FUTURES PRICES LOWER AT NEW YORK'S COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY FELL 325 CENTS TO 1065 A POUND EACH YEAR TRADERS AND SPECULATORS BUY FUTURES CONTRACTS IN DECEMBER AND EARLY JANUARY IN ANTICIPATION OF THE POSSIBILITY OF A FROST THAT COULD DAMAGE FLORIDA'S ORANGE CROP THIS BUYING HELPS TO PUSH PRICES HIGHER DURING THESE PERIODS EACH YEAR A FROST DOES NOT OCCUR TRADERS TEND TO SELL OFF THEIR FUTURES CONTRACTS IN FEBRUARY THE RECENT WARMING TREND THROUGHOUT THE COUNTRY HAS ALL BUT RULED OUT THE POSSIBILITY OF A CROPDAMAGING FROST THIS YEAR ANALYSTS SAID 9402170009 940204 YOUR MONEY MATTERS WEEKEND REPORT YOU NEED A TRANSLATOR FOR LATEST SALES PITCH BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL BACK IN THE DAYS WHEN MONEY WAS CALLED DOUGH AND HIGHNETWORTH INDIVIDUALS WERE SIMPLY CALLED RICH IT WAS A CINCH TO KNOW WHAT YOUR BROKER WAS TALKING ABOUT BUT TODAY BROKERS INSURANCE AGENTS AND OTHER FINANCIAL SALESPEOPLE USE A NEW VOCABULARY THAT GLOSSES OVER THE HARD FACT THAT THEY'RE WELL SELLING SOMETHING AND HOPING TO EARN A COMMISSION ON THE DEAL WALK INTO A BROKER'S OFFICE THESE DAYS YOU WON'T BE SOLD A PRODUCT YOU WON'T EVEN FIND A BROKER INSTEAD A FINANCIAL ADVISER WILL HELP YOU SELECT AN APPROPRIATE PLANNING VEHICLE OR OFFER A MENU OF INVESTMENT CHOICES OR OPTIONS AMONG WHICH TO ALLOCATE YOUR MONEY INVESTORS WHO AREN'T CURRENT WITH THE LINGO MIGHT FAIL TO KEEP THEIR CONSUMERS' WITS ABOUT THEM AND END UP BUYING A LEMON FORGET ABOUT BUYING HOWEVER THESE DAYS YOU'RE CHOOSING SELECTING INVESTING ALLOCATING AND OTHERWISE EMPOWERING YOUR ASSETS IF YOU UNDERSTAND THE TERMINOLOGY YOU'RE HALF WAY THERE SAYS JAMES E WILSON PRESIDENT OF THE CONSUMER FINANCIAL EDUCATION FOUNDATION IN COLUMBIA SC YOU AT LEAST KNOW WHAT QUESTIONS TO ASK HERE'S A QUICK LESSON IN DECIPHERING THE NEW DIALECT OF SELLING TAKE THE WORD COMMISSION THAT OLDFASHIONED TERM FOR WHAT BROKERS CHARGE FOR DOING BUSINESS WITH YOU COMMISSIONS ARE THE REAL REASON BROKERS TALK TO YOU AND WHY THEY MIGHT RECOMMEND ONE PRODUCT SUCH AS A VARIABLE ANNUITY WHICH PAYS A 6 COMMISSION OVER ANOTHER SUCH AS A FIXED ANNUITY WHICH PAYS 3 BUT THE NEW SALES VERNACULAR GENERALLY DOESN'T SPEAK OF COMMISSIONS EVEN THOUGH YOU STILL PAY THEM SOMETIMES THE CHARGES ARE BUILT INTO THE PRICE OF THE INVESTMENT AS THEY ARE FOR BONDS INSURANCE POLICIES AND OVERTHECOUNTER STOCKS MORE OFTEN THEY GO BY SOME OTHER NAME FOR INSTANCE WHEN YOU BUY MUTUAL FUNDS FROM A BROKER YOU TYPICALLY PAY FRONTEND LOADS WHEN YOU SELL SUCH FUNDS YOU MIGHT PAY BACKEND LOADS ALSO KNOWN AS SURRENDER PENALTIES WHICH SEEM TO IMPLY YOU'VE DONE SOMETHING WRONG THUS A SALES PITCH THAT CLAMORS THERE'S NO COMMISSION SO ALL YOUR MONEY GOES TO WORK FOR YOU AT ONCE OFTEN TRANSLATES TO THERE'S A DOOZY OF A FEE WHEN YOU TAKE YOUR MONEY OUT TO COMPLICATE MATTERS FURTHER MANY MUTUAL FUNDS SOLD BY BROKERS DON'T HAVE FRONTEND OR BACKEND LOADS BUT THAT DOESN'T MEAN THEY'RE NO LOAD FUNDS LIKE THOSE SOLD DIRECTLY TO INVESTORS BY MUTUALFUND COMPANIES RATHER IT PROBABLY MEANS THE BROKER IS HAWKING CLASS C SHARES WHERE SALES CHARGES ARE ROLLED INTO THE FUND'S ANNUAL EXPENSES INSTEAD OF COMMISSIONS YOU HAVE EXPENSE RATIOS THAT ARE ABOUT TWICE AS HIGH AS THOSE FOR OTHER FUNDS FOR INVESTORS IT ENDS UP BEING THE SAME THING INDEED WHENEVER A BROKER MAKES A POINT OF INSISTING THERE'S NO COMMISSION AT ALL START LOOKING FOR ONE NO MATTER WHAT ANYONE SAYS YOU CAN COUNT ON THIS THERE'S ALWAYS A COMMISSION THESE PEOPLE DON'T PUSH THESE PRODUCTS FOR FREE INSURANCE AGENTS LIKEWISE ABHOR THE USE OF COMMISSIONS THE WORD THAT IS AND BECAUSE INSURANCE SALESPEOPLE AREN'T REQUIRED TO DISCLOSE SUCH CHARGES UNSCHOOLED INVESTORS MAY THINK THEY DON'T EXIST IN REALITY INSURANCE POLICIES HAVE AMONG THE HIGHEST COMMISSIONS OF ANY FINANCIAL PRODUCT RUNNING AS HIGH AS 100 OF INITIAL INVESTMENTS IF YOU PLUNK DOWN A 13000 FIRSTYEAR PREMIUM FOR WHOLELIFE OR UNIVERSALLIFE INSURANCE ROUGHLY 9000 WOULD GO TO THE AGENT AS A COMMISSION ABOUT 2000 WOULD GO TO THE GENERAL AGENT AS COMMISSION AND THE REMAINING 2000 WOULD GO TO COVER OTHER MARKETING COSTS THAT'S WHY IF YOU CANCEL YOUR POLICY IN THE EARLY YEARS YOU WALK AWAY EMPTYHANDED TO BE SURE AGENTS DO DISCUSS COMMISSIONS AMONG THEMSELVES BUT WHEN PRESSED IN PUBLIC THEY INSIST THAT REGULATORS LIMIT SUCH CHARGES TO 50 OR SO OF THE FIRSTYEAR PAYMENTS COMMISSIONS ABOVE THAT LEVEL ARE SIMPLY RENAMED EXPENSE ALLOWANCE REIMBURSEMENTS SAYS CONSUMER FINANCIAL'S MR WILSON AND WHAT ARE THOSE AGENTS SELLING ANYWAY NOTHING SO PROSAIC AS LIFE INSURANCE INSTEAD THEY PEDDLE SUCH EUPHEMISMS AS PRIVATE RETIREMENT ACCOUNTS COLLEGE SAVINGS PLANS AND CHARITABLE REMAINDER TRUSTS PETER KATT AN INSURANCE ADVISER IN WEST BLOOMFIELD MICH SAYS HE EVEN SAW A POLICY MARKETED AS AN INTERMEDIATETERM BOND FUND WITH A MORTALITY CHARGE INCREASINGLY THE LIFE INSURANCE INDUSTRY SPENDS ITS TIME TRYING TO CONCOCT WAYS TO AVOID USING THAT TERM SAYS JOHN R GRAHAM OF GRAHAM COMMUNICATIONS AN INSURANCE MARKETER BASED IN QUINCY MASS SALESMEN AND BROKERS HAVE ALSO BEEN EXPUNGED FROM THE NEW SALES LEXICON INSURERS NOWADAYS RELY ON ESTATE PLANNING SPECIALISTS RETIREMENT PLANNING SPECIALISTS AND BENEFITS SPECIALISTS TO SELL THEIR POLICIES YOU RARELY SEE A BUSINESS CARD FROM A LIFE INSURANCE AGENT THAT HAS THE WORD INSURANCE' ON IT SAYS MR GRAHAM THE LAST THING THEY WANT TO BE KNOWN AS IS AN INSURANCE AGENT BECAUSE THEY DON'T THINK ANYONE WILL WANT TO TALK TO THEM ON WALL STREET MEANWHILE IT'S THE FINANCIAL CONSULTANTS AND INVESTMENT ADVISERS WHO DO THE TOUTING THESE DAYS THEY WERE CALLING THEMSELVES FINANCIAL PLANNERS FOR A WHILE BUT PLANNING DIDN'T HAVE THE SAME SEX APPEAL AS ADVISING IT'S A WAY TO IMMUNIZE YOURSELF FROM CRITICISM SAYS H LYNN HOPEWELL EDITOR OF THE JOURNAL OF FINANCIAL PLANNING IN FALLS CHURCH VA SUCH LANGUAGE MAKES IT HARDER TO DISLIKE BROKERS OR QUESTION THEIR MOTIVES OR ADVICE INVESTORS HAVE CODE NAMES TOO A QUICK SCAN THROUGH THE TRADE LITERATURE THAT BROKERS AND INSURANCE AGENTS READ TO PICK UP SELLING TIPS REVEALS THAT INDIVIDUALS ARE CLIENTS TO THEIR FACE AND PROSPECTS BEHIND THEIR BACKS THE BEST KIND IS A RISK TOLERANT HIGH NET WORTH INDIVIDUAL OR HNWI PRONOUNCED HENWEE WHICH IS SOMEONE WITH A LOT OF MONEY WHO IS WILLING TO TAKE A FLIER ALTERNATELY THE RISK AVERSE HNWI IS A PROSPECT WHO WILL BUY BONDS AMONG OTHER LINGUISTIC SLEIGHTS OF HAND IN COMMON USAGE THESE DAYS SAYING TAXFREE WHEN IN FACT IT'S ONLY TAXDEFERRED HIGH YIELD WHEN IT'S DOWNRIGHT RISKY AND PROJECTED RETURNS WHEN IT'S MORE LIKELY IN YOUR DREAMS GUARANTEED LIKE LITE AND ALL NATURAL MORE OFTEN THAN NOT MEANS NOTHING AT ALL SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIR ATTACKS PORTRAY ALL COMMISSIONS AS EVIL WSJ FEB 17 1994 9402040090 YY94 MM02 9402170008 940217 LETTERS TO THE EDITOR UNFAIR ATTACKS PORTRAY ALL COMMISSIONS AS EVIL MAYBE I'M MISSING SOMETHING BUT I ALWAYS THOUGHT JOURNALISM WAS SUPPOSED TO BE BALANCED UNFORTUNATELY THERE SEEMS TO BE A GROWING NUMBER OF ONESIDED ARTICLES THAT ATTACK THE FULLSERVICE INVESTMENT INDUSTRY YOUR MONEY MATTERS FEB 4 THERE IS A CONSTANT BARRAGE ABOUT THE EVILS OF COMMISSIONS AND NO DISCUSSION ABOUT SERVICES THAT ARE PROVIDED IN RETURN FOR COMMISSIONS THE ARTICLE SAYS COMMISSIONS ARE THE REAL REASONS BROKERS TALK TO YOU IT GOES ON TO SAY THAT BROKERS WILL RECOMMEND ONLY THE PRODUCT PAYING THE HIGHEST COMMISSION I SUPPOSE THIS IS WHY INVESTORS HAVE ENTRUSTED US WITH 540 BILLION AT MERRILL LYNCH WE GO THROUGH YEARS OF TRAINING LIFELONG TRAINING ON ASSET ALLOCATION AND FINANCIAL PLANNING WE ARE REWARDED AND COMPENSATED BY HAVING OUR CLIENTS' ASSETS GROW WE ARE EXPECTED AND DEMANDED TO RECOMMEND ONLY APPROPRIATE INVESTMENTS AND STRATEGIES FOR OUR CLIENTS AND YES PAID COMMISSIONS AS PART OF OUR COMPENSATION YES THERE CAN BE A REAL OR PERCEIVED CONFLICT OF INTEREST WHEN WORKING SOLELY ON A COMMISSION BASIS THAT IS WHY WE HAVE TAKEN MAJOR STRIDES IN TRYING TO MOVE OUR CLIENTS AND FINANCIAL CONSULTANTS TO A FEEBASED COMPENSATION SYSTEM AND I BELIEVE THE REST OF THE INDUSTRY WILL FOLLOW OUR LEAD UNFORTUNATELY WHETHER WE CHARGE FEES OR COMMISSIONS MANY OF YOUR WRITERS CONTINUE TO PROCLAIM THAT WE HAVE NO RIGHT TO CHARGE ANYONE FOR ANYTHING IN ANY SERVICE OR PRODUCT THAT WE PURCHASE IN OUR LIVES THERE IS SOME COMPENSATION INVOLVED FOR SERVICE OR PRODUCT PROVIDERS IN OUR INDUSTRY WE NOT ONLY PROVIDE ONETIME SERVICES BUT ONGOING SERVICES OFTEN WITHOUT ADDITIONAL COMPENSATION I IMPLORE YOU TO USE SOME OBJECTIVITY IF YOU ARE GOING TO QUOTE NOLOAD FUND MANAGERS THEN IN FAIRNESS GET COMMENTS FROM FULLSERVICE FUND MANAGERS IF YOU ARE GOING TO QUOTE DIATRIBES FROM FEEONLY BASED FINANCIAL PLANNERS ABOUT THE EVILS OF COMMISSIONS THEN WOULD IT BE TOO MUCH TO ASK FOR RESPONSES FROM THOSE THEY ARE CRITICIZING 9402170007 940217 INTERNATIONAL RACAL ELECTRONICS CONTRACT LONDON RACAL ELECTRONICS PLC SAID ITS RACAL RADIO LTD UNIT WON A 55 MILLION 81 MILLION CONTRACT FROM THE INTERNATIONAL TELECOMMUNICATIONS UNION TO SUPPLY A RADIO SPECTRUM MANAGEMENT SYSTEM FOR LATIN AMERICA THE EQUIPMENT WILL BE DELIVERED BY THE END OF THIS YEAR AND WILL BE OPERATIONAL AT THE BEGINNING OF 1995 RACAL SAID 9402170006 940217 HOUSE DEMOCRAT DERRICK WON'T SEEK REELECTION WASHINGTON REP BUTLER DERRICK D SC THE HIGHESTRANKING SOUTHERNER IN THE HOUSE DEMOCRATIC LEADERSHIP ANNOUNCED HE WON'T SEEK REELECTION MR DERRICK 57 JOINED A GROWING EXODUS FROM CAPITOL HILL SPAWNED IN RECENT YEARS BY PERSISTENT PUBLIC DISCONTENT WITH CONGRESS SOME 36 HOUSE MEMBERS HAVE SAID THEY WON'T SEEK REELECTION THIS FALL THOUGH 15 OF THEM ARE SEEKING OTHER ELECTIVE OFFICES ELECTED IN THE WATERGATE CLASS OF 1974 MR DERRICK HAS BEEN AN IMPORTANT EMISSARY TO HIS PARTY'S RESTIVE SOUTHERN WING IN HIS ROLE AS A TOP LIEUTENANT TO DEMOCRATIC WHIP DAVID BONIOR HE HAS BEEN IN LINE TO SUCCEED REP JOSEPH MOAKLEY D MASS AS CHAIRMAN OF THE POWERFUL RULES COMMITTEE BUT MR DERRICK'S MODERATE VIEWS AND LOYALTY TO THE LEADERSHIP HE HELPED ROUND UP VOTES FOR MR CLINTON'S TAXRAISING ECONOMIC PROGRAM FOR EXAMPLE ENSURED THAT HE WAS CONTINUALLY VULNERABLE TO CHALLENGE MR DERRICK DIDN'T ANNOUNCE FUTURE PLANS 9402170004 940217 AUTOS NEW JAPANESE CARS ALL SEEM TO LOOK THE SAME BORING BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FIRST THE JAPANESE AUTO MAKERS LOST THEIR PRICE ADVANTAGE TO DETROIT'S BIG THREE AND NOW THEY'RE LOSING THEIR STYLING PANACHE TAKE A GOOD LOOK AT THE NEW TOYOTA AVALON THEN TURN YOUR HEAD AWAY WRITES ROBERT CUMBERFORD IN AUTOMOBILE MAGAZINE YOU'LL DISCOVER THAT YOU CAN'T REMEMBER WHAT THE CAR LOOKS LIKE HE GOES ON TO BERATE THE AVALON'S STYLING AS MINDNUMBINGLY BANAL THE AVALON ISN'T THE ONLY PROBLEM STYLING BY JAPANESE AUTO MAKERS ONCE THE INDUSTRY'S DESIGN LEADERS HAS GOTTEN DULL AND PEOPLE ARE STARTING TO NOTICE IS IT ME OR DOES THE CELICA LOOK PAINFULLY SIMILAR TO ACURA'S NEW INTEGRA KIMARA MITCHELL WRITES IN A LETTER TO THE EDITOR OF CAR AND DRIVER MAGAZINE SHAME ON TOYOTA FOR TRYING TO PASS OFF ITS CELICA AS AN INTEGRA WANNABE INDEED THE TOYOTA CELICA AND ACURA INTEGRA SPORTS COUPES ARE NEARLY IDENTICAL RIGHT DOWN TO THEIR CIRCULAR HEADLIGHTS AND LOW SNOUTS IT'S ALSO DIFFICULT TO DISTINGUISH BETWEEN THE JELLYBEANSHAPED NISSAN ALTIMA AND THE JELLYBEANSHAPED MAZDA 626 A SAMENESS HAS CREPT INTO JAPANESE CAR DESIGNS SAYS CARL OLSEN CHAIRMAN OF TRANSPORTATION DESIGN AT THE CENTER FOR CREATIVE STUDIES THE COMPANIES HAVE AN ANONYMOUS CORPORATE STYLE THAT MAKES IT HARD TO TELL A MAZDA FROM A NISSAN FROM A HONDA THIS IS A REMARKABLE REVERSAL OF POSITIONS A DECADE AGO DETROIT WAS TAKING HEAT FOR BLAND STYLING IN AUGUST 1983 FORTUNE LINED UP FOUR INDISTINGUISHABLE CHEVY PONTIAC OLDSMOBILE AND BUICK MODELS AND PUT THEM ON THE COVER AS A BITING COMMENTARY ON GM'S LOOKALIKE DESIGNS LOOKALIKE STYLING SENT MILLIONS OF AMERICANS TO JAPANESE SHOWROOMS TO BUY CARS LIKE THE 1983 HONDA PRELUDE THE 1983 MAZDA 626 THE 1989 NISSAN MAXIMA AND THE 1990 PREVIA MINIVAN JAPANESE STYLING WAS LEADING EDGE IN THE 1980S SAYS CHRISTOPHER CEDERGREN AN AUTOMOTIVE CONSULTANT WITH AUTOPACIFIC GROUP INC THEY TOOK MORE RISKS BECAUSE THEY WERE GOING AFTER MORE MARKET SHARE TODAY HOWEVER THE STYLING RACE IS BEING WON BY THE BIG THREE AND THE JAPANESE ARE BEGINNING TO REALIZE IT MR CEDERGREN SAYS STYLING CRITICS SAY DETROIT HAS PULLED AHEAD WITH SUCH CHEEKY NEW MODELS AS THE FORD MUSTANG CHEVROLET CAMARO CHRYSLER NEON AND CIRRUS AND DODGE STRATUS OF COURSE SOME JAPANESE VEHICLES HAVE BEEN BONA FIDE STYLING HITS INCLUDING THE NISSAN ALTIMA AND THE TOYOTA CAMRY AND THE SPORTY HONDA CIVIC DEL SOL CREATED QUITE A SPLASH WHEN IT WAS UNVEILED LAST YEAR ANALYSTS SAY THAT EVEN SOME MODELS THAT RESEMBLE EACH OTHER SUCH AS THE ALTIMA AND THE MAZDA 626 ARE NICELY STYLED JAPANESE AUTO MAKERS MEANWHILE MAINTAIN THAT THEIR VEHICLES ARE MORE DISTINCTIVE THAN EVER SIX OR SEVEN YEARS AGO MOST JAPANESE CARS WERE BOXY AND HAD NO EMOTION SAYS TOM MATANO MAZDA'S EXECUTIVE VICE PRESIDENT OF DESIGN AND SPECIAL PROJECTS THEY DON'T LOOK ALIKE AS MUCH AS THEY USED TO HE CONCEDES THOUGH THAT MANY JAPANESE MODELS HAVE A ROUNDED JELLYBEAN DESIGN THAT GIVES THEM A SIMILAR LOOK SO HOW DID JAPAN'S STYLING BECOME DULL INDUSTRY WATCHERS SAY THE AUTO MAKERS HAVE FAVORED MAINSTREAM CONSERVATIVE DESIGNS AS A WAY OF PROTECTING THEIR MARKET SHARE IN ADDITION WHEN THERE IS A GOOD STYLING IDEA OTHER COMPANIES ARE INFLUENCED BY THAT SAYS DAVID HACKETT STUDIO DIRECTOR OF CALTY DESIGN STUDIO IN CALIFORNIA WHEN JAPANESE COMPANIES MAKE A BOLD STYLING STATEMENT IT'S USUALLY WITH VEHICLES THAT WIND UP HAVING LIMITED APPEAL FOR INSTANCE MAZDA SOLD JUST 5026 OF ITS CURVY RX7 SPORTS CARS LAST YEAR DOWN 157 FROM THE PREVIOUS YEAR WHILE NISSAN SOLD 9516 300ZX SPORTS CARS DOWN 3 THE TROUBLE WITH NICHE VEHICLES IS THAT THEY TYPICALLY LOSE THEIR APPEAL QUICKLY MEANWHILE THE JAPANESE MAKERS HAVE A DEARTH OF STRONG CONTENDERS IN THE HOTTEST SEGMENT OF THE US AUTO MARKET TRUCKS AFTER YEARS OF DITHERING HONDA FINALLY BEGAN SELLING A SPORT UTILITY VEHICLE THIS MONTH THE AUTO MAKER WON'T OFFER A MINIVAN UNTIL NEXT YEAR THE TOYOTA T100 PICKUP IS A FLOP THE AUTO MAKER EXPECTED TO SELL 50000 ANNUALLY BUT LAST YEAR SOLD JUST 22000 AND WHAT ABOUT FUTURE STYLING JAPANESE AUTO MAKERS WON'T COMMENT BUT INDUSTRY WATCHERS SPECULATE THAT THEIR CARS ARE LIKELY TO ADOPT BOLDER MORE LINEAR DESIGNS IN THE NEXT FEW YEARS 9402170003 940217 DSC COMMUNICATIONS CONTRACT DALLAS DSC COMMUNICATIONS CORP SAID IT RECEIVED A FIVEYEAR CONTRACT FROM US WEST COMMUNICATIONS A UNIT OF US WEST INC FOR COMMUNICATIONS COMPONENTS TERMS WEREN'T DISCLOSED 9402170002 940217 INTERNATIONAL GERMANY'S WHOLESALE PRICES WIESBADEN GERMANY WESTERN GERMAN WHOLESALE PRICES ROSE 06 IN JANUARY FROM DECEMBER AND WERE UNCHANGED FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED JANUARY'S WHOLESALE PRICES WERE EXPECTED TO CLIMB 04 IN JANUARY BUT TO BE DOWN 02 FROM A YEAR EARLIER ACCORDING TO A SURVEY OF 11 ECONOMISTS THE STATISTICS OFFICE SAID THE RELATIVELY STRONG MONTHONMONTH INCREASE IN THE PRICE INDEX IS DUE MAINLY TO THE INCREASE IN THE OIL TAX JAN 1 EXCLUDING PETROLEUM PRODUCTS THE OVERALL INDEX SHOWED A MONTHONMONTH CLIMB OF 01 9402170001 940217 JAPAN'S SURPLUS ROSE 17 IN JANUARY HEIGHTENING WORRY OVER TRADE PICTURE BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN SAID ITS TRADE SURPLUS BALLOONED AGAIN IN JANUARY A DEVELOPMENT THAT IS LIKELY TO AGGRAVATE TENSIONS WITH THE US THE SURPLUS WIDENED 17 TO 611 BILLION FROM 522 BILLION A YEAR EARLIER THE INCREASE THE LARGEST SINCE JULY WAS THE SECOND IN AS MANY MONTHS JAPAN'S TRADE SURPLUS WIDENED 15 IN DECEMBER THE JANUARY DATA MAY HEIGHTEN CONCERNS THAT A MOREBALANCED TRADE PICTURE IS A LONG WAY OFF ON A BILATERAL BASIS JAPAN'S SURPLUS WITH THE US GREW 7 FROM A YEAR EARLIER TO 313 BILLION IN DECEMBER THE BILATERAL SURPLUS HAD WIDENED 17 THE FIGURES DON'T BODE WELL FOR RELATIONS WITH WASHINGTON COMING ON THE HEELS OF THE FAILED USJAPAN TRADE TALKS AND US CHARGES THAT JAPAN HAS VIOLATED A PACT TO OPEN ITS CELLULAR PHONE MARKETS WASHINGTON HAS SAID JAPAN MAY FACE TRADE SANCTIONS THE PRESSURE IS GOING TO BE KEPT ON THE JAPANESE AFTER THIS CHRIS CALDERWOOD AN ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES LTD SAID ABOUT THE JANUARY TRADE DATA THE FIGURES WERE ESSENTIALLY IN LINE WITH BARCLAYS'S PREDICTIONS BUT MORE UNSETTLING THAN THE 17 INCREASE IN THE SURPLUS WHEN MEASURED IN DOLLARS MR CALDERWOOD AND OTHERS SAID WAS A 48 INCREASE IN THE SURPLUS WHEN MEASURED IN YEN BECAUSE THE STRONG YEN INFLATES THE DOLLAR VALUE OF TRADE THE YENDENOMINATED FIGURES CAN BE A MORE ACCURATE MEASURE OF JAPAN'S TRADE FLOWS JAPAN'S SURPLUS WITH OTHER ASIAN NATIONS NEARLY DOUBLED FROM A YEAR EARLIER TO 299 BILLION CONTINUING PROOF OF JAPAN'S TIGHTENING REGIONAL LINKS BUT ITS SURPLUS WITH THE EUROPEAN UNION DROPPED 36 TO 175 BILLION IN CONTRAST TO A 97 INCREASE IN DECEMBER ECONOMISTS ATTRIBUTED THE SHIFT TO RECESSIONPINCHED EUROPEAN DEMAND OVERALL EXPORTS FROM JAPAN ROSE 75 IN JANUARY TO 2593 BILLION JANUARY'S FIGURES DID CONTAIN SOME GOOD NEWS FOR AMERICAN BUSINESSES IMPORTS OF US PRODUCTS ROSE 11 IN DOLLAR TERMS THEIR 11TH CONSECUTIVE MONTHLY GAIN JAPAN'S OVERALL IMPORTS ROSE 48 IN DOLLAR VALUE DURING JANUARY TO 1982 BILLION AND 84 IN TERMS OF VOLUME THE IMPORT BOOM IS SURPRISING BECAUSE COUNTRIES TEND TO RESTRAIN IMPORTS DURING AN ECONOMIC DOWNTURN SUCH AS THE ONE JAPAN IS EXPERIENCING STILL ANALYSTS CAUTIONED THAT IT IS UNCLEAR HOW MUCH SUCH GAINS WILL MOLLIFY THE US BECAUSE A LARGE PART OF THE INCREASE IN IMPORTS COMES FROM JAPANESE PRODUCTION FACILITIES OVERSEAS PEOPLE ARE CONTINUING TO SHIFT PRODUCTION TO OFFSHORE BASES AND LARGELY REIMPORTING JAPANESE PRODUCTS FROM OVERSEAS SAID DONALD KIMBALL SENIOR ECONOMIST AT MITSUBISHI BANK LTD THAT CHARGE IS TYPICALLY PARRIED WITH JAPANESE ASSERTIONS THAT THEIR OVERSEAS INVESTMENT BOOSTS DEVELOPING ECONOMIES IN THE REGION 9402170073 940124 ENTERPRISE BY TIMOTHY L O'BRIEN INCREASED CONCERN ABOUT DRINKINGWATER QUALITY IS CREATING A FLOOD OF DEMAND FOR CHEAP AND SIMPLE FILTRATION DEVICES WHILE ONE OF THE MOST POPULAR IS MADE BY BRITA USA A UNIT OF BIG CONSUMERPRODUCTS MAKER CLOROX SMALL MANUFACTURERS DOMINATE THE INDUSTRY MANY EXPECT SALES TO SKYROCKET IN 1994 BUILDING ON LAST YEAR'S STRONG GROWTH ABOUT 15 OF US HOUSEHOLDS USE THE DEVICES UP FROM 4 IN 1992 ACCORDING TO THE HOME WATER REPORT A NEWSLETTER IN CHINCOTEAGUE ISLAND VA INNOVA PURE WATER IN CLEARWATER FLA ANTICIPATES SALES OF ABOUT 3 MILLION FOR THE FISCAL YEAR ENDING JUNE 30 UP FROM 900000 LAST YEAR INNOVA MAKES A SMALL CARAFE THAT FILTERS TAP WATER FOR A SUGGESTED RETAIL PRICE OF 6 CONSUMERS ARE REALIZING THERE ARE ALTERNATIVES TO BOTTLED WATER AND FILTERED WATER SYSTEMS ARE BECOMING MUCH MORE POPULAR SAYS JOSEPH NOHREN INNOVA'S EXECUTIVE VICE PRESIDENT THE DEVICES ALSO ARE A GROWING PRODUCT CATEGORY FOR POLLENEX SAYS PHIL GYORI A SPOKESMAN FOR THE KANSAS CITY MO MAKER OF FAUCET FILTERS EVERYBODY'S BEEN SCRATCHING THEIR HEADS FOR A LONG TIME SAYING THIS SHOULD BE BIG NOW IT'S FINALLY STARTING TO PICK UP SPEED MR GYORI SAYS SALES OF POLLENEX'S 25 FILTERS ROSE 30 LAST YEAR THE PRIVATELY HELD COMPANY WHICH DECLINES TO DISCLOSE FIGURES EXPECTS STRONGER GROWTH THIS YEAR HE ADDS CALDERA ENVIRONMENTAL A CHICAGO FILTER MAKER SAYS 1993 FILTER SALES AT ITS STERLING AIR & WATER UNIT ROSE TO 45 MILLION FROM 1 MILLION IN 1992 CALDERA OFFICIALS THINK TASTES WILL BECOME MORE SOPHISTICATED OVER THE NEXT FEW YEARS WE'RE HOPING THAT AS CONSUMERS BECOME MORE COMFORTABLE WITH SIMPLER FILTRATION SYSTEMS THEY'LL THINK ABOUT USING MORE ELABORATE SYSTEMS FOR THE ENTIRE HOME SAYS DAWN VAN ZANT A SPOKESWOMAN ENTREPRENEURS COMPLAIN THAT INCREASED TELEMARKETING ABUSES MAKE IT HARDER FOR LEGITIMATE CATALOG STARTUPS TO GET MERCHANT ACCOUNTS FROM COMPANIES THAT ISSUE OR PROCESS CREDIT CARDS THERE IS A LOT OF TRUTH TO THAT SAYS JOHN ELLIOT CHIEF EXECUTIVE OFFICER OF CARD ESTABLISHMENT SERVICES A BIG CREDITCARD PROCESSOR IN MELVILLE NY BUT THE PROBLEM WITH MAIL ORDER IS THAT WE'RE EFFECTIVELY ASKED TO GIVE THE MERCHANT THE MONEY WITHOUT SEEING WHETHER THE CUSTOMERS GET THE GOODS OWNERS OF SMALL CATALOG COMPANIES SAY CREDITCARD COMPANIES HAVE BECOME TOO DEFENSIVE YOU WOULD THINK WE WERE IN THE BUSINESS OF TRUCKING NITROGLYCERINE ACROSS THE TRANSALASKA HIGHWAY GIVEN HOW AFRAID OF US THEY WERE SAYS DANIEL ROTHMEL FOUNDER OF GOLDEN CALIFORNIA CATALOG IN LOS ANGELES THOUGH THE STATE IS A PARTNER AND INVESTOR IN THE COMPANY MR ROTHMEL SAYS HE TRIED FOR SEVERAL MONTHS TO GET A CREDITCARD ACCOUNT BEFORE LAUNCHING HIS CATALOG BUSINESS THREE MONTHS AGO IT SELLS GIFTS AND SOUVENIR ITEMS WITH A CALIFORNIA THEME MR ROTHMEL FINALLY LANDED AN ACCOUNT WITH LITLE & CO A SALEM NH PROCESSOR SPECIALIZING IN CATALOG FIRMS AND DIRECTMAIL STARTUPS OTHER ENTREPRENEURS SAY ESTABLISHING AN ACCOUNT CAN BE UNNECESSARILY DIFFICULT CREDITCARD COMPANIES ALL TOLD ME THAT IF YOU'RE A NEW MAILORDER BUSINESS WE DON'T WANT TO TALK TO YOU SAYS JEAN HILL OWNER OF AMARA KOSHER MEATS IN NEW YORK MS HILL WHO STARTED HER MAILORDER FOOD COMPANY A YEAR AGO SAYS SHE SPENT THREE YEARS LOOKING FOR A COMPANY BEFORE A CONSULTANT STEERED HER TOWARD LITLE THESE CREDITCARD COMPANIES JUST WANT TO REAP THE BENEFITS OF FEES BUT DON'T TAKE THE RISK OF HELPING A SMALL BUSINESS GET STARTED SHE ADDS LITLE AND DMGT IN NASHUA NH WHICH ALSO HANDLES SMALL CATALOG ACCOUNTS SAY A STARTUP GETS THE ACCOUNTS FASTER WHEN IT CAN PROVIDE A WELLDEVELOPED BUSINESS PLAN AND HAS STRONG FINANCIAL BACKING AND MANAGEMENT EXPERIENCE SMALL BUSINESSES ARE GETTING MORE ADVICE ON NEGOTIATING THE CONFUSING WORLD OF OUTSOURCING WITH BIG CORPORATIONS INCREASINGLY CONTRACTING OUT EVERYTHING FROM DATA PROCESSING TO JANITORIAL WORK OUTSOURCING ARRANGEMENTS CAN BECOME THORNY FOR SMALL VENDORS OUTSOURCING PROGRAMS ARE THROWN TOGETHER HAPHAZARDLY AND MANY OF THE SMALL BUSINESSES THAT BECOME INVOLVED WITH THEM GET BURNED SAYS JOSEPH BISSETT PRESIDENT OF CONSERVE A WAYNE PA COMPANY THAT BROKERS ARRANGEMENTS BETWEEN SMALL AND LARGE COMPANIES SMALL CONCERNS OFTEN DON'T GET ADEQUATE SUPPORT FROM THE LARGER COMPANIES AND TERMS OF DEALS OFTEN ARE CLOUDY HE ADDS MR BISSETT SAYS CONSERV'S BUSINESS HAS GROWN DRAMATICALLY OVER THE LAST SIX MONTHS BECAUSE MORE SMALL BUSINESSES HAVE HAD PROBLEMS FINDING SATISFACTORY OUTSOURCING CONTRACTS HE SAYS SMALL COMPANIES SHOULD MAKE SURE CONTRACTS ARE EXCLUSIVE ARE LONGER THAN A YEAR AND HAVE WELLDEFINED COMMISSION OR PAYMENT TERMS OTHERS ALSO ARE MAKING A BIGGER PUSH TO ASSIST SMALL FIRMS COOPERS & LYBRAND THE LARGE NEW YORK CONSULTING GROUP HAS BROKERED OUTSOURCING ARRANGEMENTS BETWEEN BIG AND SMALL CONCERNS FOR THE PAST 18 MONTHS AND IN APRIL THE NONPROFIT OUTSOURCING INSTITUTE OPENED IN NEW YORK IN RESPONSE TO WHAT IT SAYS WAS FRUSTRATION AMONG CORPORATE MANAGERS SEEKING MORE OUTSOURCING VENDORS OF ALL SIZES THE INSTITUTE CHARGES VENDORS 2200 A YEAR FOR A LISTING IN AN OUTSOURCING GUIDE A NEWSLETTER AND SEMINAR DISCOUNTS COMPANIES WITH REVENUE OF 100 MILLION OR LESS PAID THEIR CEOS AN AVERAGE SALARY OF 143900 LAST YEAR ONLY 33 MORE THAN 1992 ACCORDING TO A RECENT SURVEY OF 735 SUCH FIRMS BY CONSULTANTS ERNST & YOUNG IN NEW YORK ALL IN THE FAMILY ABOUT 24 OF THE OWNERS OF FAMILYOWNED ENTERPRISES DO NOT WANT TO TRANSFER THE BUSINESS TO A RELATIVE ACCORDING TO A RECENT SURVEY BY THE GALLUP ORGANIZATION SEE RELATED LETTER LETTERS TO THE EDITOR NEW BUSINESSES STIFLED BY LACK OF BANK CREDIT WSJ FEB 16 1994 9401240004 YY94 MM02 9402170067 940118 PRICING HEALTH CARE HIGH PRICE OF MANAGED CARE BY STEVE SALERNO WITH 98 BILLION IN ANNUAL REVENUES AND A SIXTH OF THE NATION'S 40 MILLION HMO SUBSCRIBERS THE OAKLANDBASED KAISER PERMANENTE FOUNDATION HEALTH PLAN IS CONSIDERED THE PARADIGM FOR PREPAID HEALTHCARE DELIVERY AND IT WEARS THE LABEL PROUDLY THE LATEST KAISER ANNUAL REPORT BRIMS WITH REFERENCES TO TOTAL QUALITY MANAGEMENT AND OTHER INDUSTRIAL BUZZWORDS A LOOK AT KAISER HOWEVER RAISES CONCERNS ABOUT THE MEDICAL AND ETHICAL UNDERPINNINGS OF MANAGED CARE A CORNERSTONE OF THE CLINTON HEALTH PLAN AND SEVERAL REFORM ALTERNATIVES THE KAISER SYSTEM IS ROOTED IN TWO CORE PRINCIPLES CUT THE FAT AND CONTROL THE PATIENT THE FATTRIMMING SHOWS UP IN KAISER'S DOCTORPATIENT RATIO WHICH AT 13 PER 1000 IS ROUGHLY A THIRD THE NATIONAL AVERAGE FOR HEALTHCARE SYSTEMS AS FOR CONTROLLING THE PATIENT AT KAISER YOU CHECK YOUR RIGHT TO CHART YOUR OWN MEDICAL COURSE AT THE DOOR THAT PRIVILEGE FALLS TO THE MEDICAL GROUP TO WHICH YOU ARE ASSIGNED MEMBER PHYSICIANS WEIGH THE COST OF THE PROPOSED TREATMENT AGAINST ITS PROBABLE LONGTERM OUTCOME THIS IS THE VERY HEART OF MANAGED HEALTH CARE ENABLING KAISER AND ITS IMITATORS TO OFFER EMPLOYERS A SUBSTANTIAL SAVINGS IN PREMIUMS IN 1992 US COMPANIES PAID 3313 PER WORKER FOR KAISERTYPE COVERAGE AS AGAINST 4080 FOR FEEFORSERVICE INSURANCE BUT FOR CONSUMERS SUCH ECONOMIES COME AT A PRICE DESCRIPTIONS OF THE KAISER SYSTEM ARE UNCOMFORTABLY EVOCATIVE OF A FREE CLINIC WITH ROTATING CASTS OF DOCTORS OR NURSEPRACTITIONERS IF ONE'S COMPLAINT IS NOT DEEMED WORTHY OF A DOCTOR'S TIME ENDLESS WAITS FOR APPOINTMENTS AND TALES OF DOZENS OF PEOPLE STANDING IN LINE TO GIVE BLOOD OR URINE SAMPLES KAISER'S OWN INHOUSE MAGAZINE COVERAGE REPORTED IN DECEMBER 1992 THAT TWOTHIRDS OF SUBSCRIBERS WERE DISSATISFIED WITH THE AMOUNT OF TIME ONE MUST SPEND ON THE PHONE TO MAKE AN APPOINTMENT AND IN FACT A RECORD 62700 SUBSCRIBERS DEFECTED FROM KAISER THAT YEAR THE COVERAGE ARTICLE CONCEDED THAT THE EXODUS WAS PROMPTED AT LEAST IN PART BY SERVICE ISSUES AND KAISER OFFICIALS EXPRESSED THEIR COMMITMENT TO ADDRESSING THEM CRITICS CHARGE KAISER WITH VALUING THRIFT ABOVE THOROUGHNESS WEALTH OVER HEALTH THERE JUST ISN'T AS MUCH OF AN INCENTIVE FOR YOU TO STAY WELL AS THERE IS FOR THEM TO STAY PROFITABLE SAYS RICHARD MATTINGLY A SAN DIEGO BRANCH MANAGER FOR ROBERT F DRIVER CO A GIANT IN THE FIELD OF EMPLOYEEBENEFITS CONSULTING CONSIDER THE CASE OF ANGELA FARNUM NOW AGE 38 MRS FARNUM FELT THE FIRST TWINGE IN HER BREAST IN 1985 SHE PROMPTLY MADE AN APPOINTMENT WITH HER KAISER PHYSICIAN WHO SHE SAYS DISMISSED THE PROBLEM AS FIBROCYSTIC DISEASE A BENIGN CONDITION THE SYMPTOMS PERSISTED AND SHE REQUESTED A MAMMOGRAM BUT ACCORDING TO MRS FARNUM HER DOCTOR SAID THERE WAS NO BASIS FOR THE TEST EVEN CHASTISING HER FOR HER HYPOCHONDRIA WHEN SHE BECAME PREGNANT SOON AFTER AND THE SYMPTOMS ABATED MRS FARNUM CONVINCED HERSELF THAT DOCTOR KNOWS BEST A FEW SPRINGS LATER WHILE NURSING HER THIRD CHILD MRS FARNUM WAS AGHAST TO NOTE THAT THE INFANT APPEARED TO BE SPITTING UP BLOOD KAISER PHYSICIANS AGAIN WERE DISMISSIVE SHE SAYS LATER AFTER SHE COMPLAINED OF PAIN IN THE PELVIC AREA SHE SAYS KAISER STAFF INSISTED STILL ON THE BASIS OF A SUPERFICIAL EXAM THAT SHE SUFFERED FROM LINGERING POSTPARTUM SORENESS ONLY IN 1990 AFTER SHE FOUND DIMPLING IN HER BREAST A CLASSIC SIGN OF ADVANCING CANCER WAS MS FARNUM ABLE TO OBTAIN AUTHORIZATION FOR MAGNETIC RESONANCE IMAGING MRI THE RESULTS WERE DEVASTATING A VIRULENT CARCINOMA HAD METASTASIZED THROUGHOUT HER SYSTEM KAISER SPOKESMAN DANIEL DANZIG SAYS OUR CONTENTION IS THAT THE CHRONOLOGY AND PARTICULARS OF THE FARNUM CASE ARE NOT AS DAMNING AS HER ALLEGATIONS MAKE IT APPEAR STILL IN 1992 MRS FARNUM AND HER ATTORNEY MEREL NISSENBERG WON A 500000 SETTLEMENT FROM KAISER ANGELA FARNUM'S STORY IS HARDLY UNIQUE THERE'S THE WELLS FARGO TELLER WHOSE NAGGING SCIATICA TURNED OUT TO BE A SPINAL TUMOR THAT SPREAD TO HER BRAIN AND THE COSMETOLOGIST WHOSE CHRONIC FINGER FUNGUS TURNED OUT TO BE A MELANOMA THESE CASES EPITOMIZE A VERY SPECIFIC TYPE OF PROBLEM ARISING WITHIN MANAGED CARE THE OFFTHECUFF DIAGNOSIS THAT PROVES GRIEVOUSLY OFF THE MARK SAYS ATTORNEY SUSAN FINKELSTEIN ONE OF THE NEARDOZEN MALPRACTICE SPECIALISTS CONSULTED FOR THIS PIECE CLEARLY WITH KAISER THERE ARE A DISPROPORTIONATE NUMBER OF CASES RELATING TO CONTINUITY OF MEDICAL CARE OR INADEQUATE TESTING AND FOLLOWUP JUST HOW MUCH IS HARD TO SAY PLAN MEMBERSHIP ENTAILS AN IMPLICIT CONSENT TO BINDING ARBITRATION KAISER'S POLICY OF PRIVATELY ADMINISTERED ARBITRATION FRUSTRATES ANY ATTEMPTS TO RESEARCH THE TOTAL NUMBER OF MALPRACTICE CLAIMS OR PERUSE RELEVANT TRANSCRIPTS AFTERWARD NOR FOR THAT MATTER IS THERE AN APPEAL PROCESS KAISER PARTISANS BRISTLE AT HAVING THEIR RECORD IMPUGNED ON THE BASIS OF DAMNING ANECDOTES SAYS HUGH JONES SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE SOUTHERN CALIFORNIA HEALTH PLAN IF THERE WERE A WAY TO COMPARE THE INCIDENCE OF THOSE TYPES OF OCCURRENCES IN OUR POPULATION WITH THE INCIDENCE IN OTHERS I THINK I'D BE VERY PROUD OF KAISER'S RECORD MR JONES AND OTHERS CITE SURVEYS BY THE GROUP HEALTH ASSOCIATION OF AMERICA SHOWING THAT A TYPICAL CONTINGENT OF 1000 HMO ENROLLEES AGE 65 AND OVER WILL REQUIRE AN AGGREGATE OF ONLY 1543 DAYS OF ANNUAL HOSPITALIZATION AS AGAINST A NATIONAL AVERAGE OF ALMOST 3000 DAYS CRITICS THOUGH DENOUNCE SUCH STATISTICS AS TENDENTIOUS SURE IF YOU DON'T HOSPITALIZE SICK PEOPLE THEY'LL SPEND FEWER DAYS IN THE HOSPITAL SAYS MS NISSENBERG SOME OF THEM WILL GO STRAIGHT FROM THEIR HOMES TO THE MORGUE KAISER INSIDERS DO NOT DENY KEEPING A TIGHT REIN ON THE SCREENING TESTS COLLECTIVELY REGARDED AS THE HALLMARK OF CONTEMPORARY PREVENTIVE MEDICINE THERE ARE A LOT OF COMMON MYTHS ABOUT ROUTINE SCREENING ASSERTS KAISER CEO DAVID LAWRENCE LIKE A PHYSICAL EXAM EVERY YEAR YOU DON'T NEED THAT FIGURES SPECIFIC TO KAISER ARE HARD TO COME BY BUT DATA COMPILED BY THE NATIONAL AMBULATORY MEDICAL CARE SURVEY CONFIRM THAT HMOS AND OTHER MANAGEDCARE PLANS ARE LESS LIKELY TO AUTHORIZE HIGHTECH TESTING IN THE CASE OF MRIS AND CT SCANS THE DIFFERENCE IS A FACTOR OF AT LEAST TWO TO ONE AS JUST ONE EXAMPLE MANAGEDCARE GURUS HAVE DETERMINED THAT WOMEN UNDER AGE 50 DO NOT NEED ROUTINE MAMMOGRAMS AS FOR THE REPUTEDLY SMALL NUMBER OF WOMEN WHOSE CANCERS SUCH TESTS WOULD FIND THEY BECOME ACCEPTABLE LOSSES IN A SYSTEM DESIGNED FOR BROADBASED COST CONTAINMENT SAYS DAN NIXON AMERICAN CANCER SOCIETY VICE PRESIDENT FOR PROFESSIONAL EDUCATION THE LOGIC SEEMS TO BE THAT IF A CERTAIN THERAPY IS OF DUBIOUS VALUE FOR THE MAJORITY THEN YOU DON'T OFFER IT TO THE MINORITY IT WILL BENEFIT EITHER OBTAINING AUTHORIZATION FOR TESTS CAN BE A SISYPHEAN UNDERTAKING EVEN FOR SOMEONE WHO IS BLEEDING RECTALLY VERNON STORY PRESENTED EVERY CLASSIC SYMPTOM THAT CRIED OUT FOR EVALUATION FOR COLON CANCER ACCORDING TO MEDICAL MALPRACTICE ATTORNEY VIRGINIA NELSON MS NELSON CLAIMS THAT MR STORY HAD PAIN THAT HE HAD THE BLEEDING THAT HE WAS A MALE IN HIS MID40S AN AGE GROUP WHERE THIS SORT OF CANCER HAS BECOME ALL TOO PREVALENT MOST OMINOUSLY SHE REPORTS THAT VERNON'S FATHER DIED OF THAT VERY DISEASE WHILE IN HIS 40S EVEN SO OVER AN EIGHTYEAR PERIOD THE ATTORNEY SAYS MR STORY WAS UNABLE TO PROD KAISER PHYSICIANS INTO TREATING HIM AS A HIGHRISK CANCER PATIENT IN EARLY 1990 THE LAWYER SAYS HE WAS DIAGNOSED WITH STAGE 3 COLON CANCER SAYS ANOTHER MALPRACTICE ATTORNEY I GET 15 OR 20 CALLS A YEAR FROM PEOPLE REGARDING LATE DIAGNOSIS FOR CANCER AT KAISER WHY MIGHT A DOCTOR WITHHOLD TREATMENT THAT COULD BENEFIT THE PATIENT KAISER MEDICAL GROUPS ARE EXPECTED TO HIT CERTAIN BUDGETARY TARGETS DRUMMED IN DURING A TWO OR THREEYEAR PROBATION PERIOD GROUPS THAT STAY BENEATH THEIR ESTABLISHED CEILING ARE REWARDED WITH AN ENDYEAR BONUS AMOUNTING TO 3 OR 4 OF ANNUAL SALARY KNOWN IN MANAGEDCARE PARLANCE AS ATRISK COMPENSATION THOUGH FRANK MURRAY BOARD CHAIRMAN AND MEDICAL DIRECTOR OF KAISER'S SOUTHERN CALIFORNIA PLAN CLAIMS THE FEW EXTRA PERCENTAGE POINTS DO NOT CONSTITUTE A MEANINGFUL INCENTIVE TO ANY PARTICULAR BEHAVIORS MS NISSENBERG FINDS IT FRIGHTENING TO THINK YOUR DOCTOR'S COURSE OF TREATMENT MIGHT BE BASED ON HOW MUCH MONEY HE'LL HAVE LEFT OVER FOR HIMSELF AT YEAR'S END SAYS WALTER LAWRENCE OF THE AMERICAN CANCER SOCIETY IT'S NOT NECESSARILY THAT THESE ARE BAD DOCTORS OR BAD PEOPLE IT'S THE CULTURE IN WHICH THEY OPERATE A CULTURE IN WHICH EVERY DECISION IS ASSESSED IN TERMS OF STATISTICS AND PROBABILITIES AND DOLLARS AND THEREIN LIES THE CRITICAL FALLACY IN THIS WHOLE ATTEMPT TO APPLY TO MEDICINE THE LESSONS OF TQM AND ADVANCED INDUSTRIALMANAGEMENT THEORY ONE DOES NOT WEIGH DECISIONS BEARING DIRECTLY UPON LIFE AND DEATH AS ONE WOULD SAY A DECISION ON WHETHER TO INVEST IN A GIVEN COMMODITY WE CANNOT IN GOOD CONSCIENCE REDUCE THE PRACTICE OF MEDICINE TO THE EQUIVALENT OF A LAS VEGAS ODDS BOARD MR SALERNO WHO LIVES IN SAN DIEGO WRITES FREQUENTLY ABOUT MEDICAL ISSUES SEE RELATED LETTERS LETTERS TO THE EDITOR IN DEFENSE OF MANAGED CARE WSJ FEB 17 1994 9401180058 YY94 MM02 9402160197 940216 PRUDENTIAL AGREES TO AVOID PROJECTIONS IN DETERMINING VALUE OF PARTNERSHIPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC REACHED AN AGREEMENT WITH AN INDEPENDENT CLAIMS ADMINISTRATOR TO AVOID USING LONGRANGE PROJECTIONS IN SETTING THE VALUE OF ABOUT 200 REALESTATE PARTNERSHIPS THE ACCORD IS SIGNIFICANT FOR INVESTORS TRYING TO TAP INTO A 330 MILLION REPARATIONS FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS PRUDENTIAL HAS BEEN ACCUSED OF MISLEADING INVESTORS INTO BUYING 815 BILLION OF PARTNERSHIPS ABOUT 4 BILLION OF WHICH WERE REALESTATE TRANSACTIONS THE AGREEMENT EFFECTIVELY MEANS THAT INVESTORS MAY BE ABLE TO RECEIVE SLIGHTLY MORE IN RESTITUTION FOR THEIR PRUDENTIAL REALESTATE PARTNERSHIPS THAN THEY OTHERWISE WOULD HAVE THE ACCORD REPRESENTS A CONCESSION BY PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM PREVIOUSLY PRUDENTIAL HAD USED APPRAISERS THAT SIZED UP THE VALUE OF REALESTATE PARTNERSHIPS BY USING AMONG OTHER THINGS DISCOUNTED CASH FLOW BASED ON 10YEAR PROJECTIONS BUT THIS METHOD DIDN'T PASS MUSTER WITH IRVING POLLACK THE CLAIMS ADMINISTRATOR HE BELIEVED THE PROJECTIONS WERE UNREALISTIC AND COULD OVERSTATE THE PARTNERSHIPS' VALUE NOW IN SETTING THE VALUE OF REALESTATE PARTNERSHIPS PRUDENTIAL HAS AGREED TO USE THE PROJECTS' PAST PERFORMANCE AND CURRENT AUDITED OPERATING RESULTS STILL THERE'S AT LEAST AS MUCH ART AS SCIENCE IN THE VALUATION PROCESS SAYS JOHN P MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT THERE'S NO MAGIC IN THE FORMULA HE SAYS AND THERE'S A LOT OF 'KENTUCKY WINDAGE' IN IT BUT WE'RE NOT GOING TO USE A LOT OF FAROUT PROJECTIONS THE CLAIMS ADMINISTRATOR STRESSED THAT THE CURRENT VALUES OF REALESTATE PARTNERSHIPS HAVEN'T BEEN SET ONLY THE METHOD IN CALCULATING THIS SOCALLED RESIDUAL VALUE WE PUT THE KIBOSH ON USING PROJECTIONS SAYS JOEL BRENNER A LAWYER WORKING WITH MR POLLACK BUT WE ARE GOING TO BE MONITORING THIS PROCESS ON A PROJECTBYPROJECT BASIS HE SAID THE INFORMAL ACCORD PAVES THE WAY FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT TO START MAKING SETTLEMENT OFFERS TO THOUSANDS OF INVESTORS RESIDUAL VALUE WHAT THE PARTNERSHIPS ARE REALLY WORTH PLAYS A MAJOR ROLE IN DETERMINING WHAT DAMAGES INVESTORS OUGHT TO RECEIVE IT'S DIFFICULT TO DETERMINE THE TRUE WORTH OF MANY REALESTATE DEALS UNLIKE STOCKS MANY PARTNERSHIPS ARE ILLIQUID AND THUS CAN'T EASILY BE RESOLD IN THE MARKET AND CONVERTED TO CASH PRUDENTIAL SUGGESTS THAT USING THE NEW METHOD WILL REDUCE THE RESIDUAL VALUE BY JUST 5 THIS MEANS THE RESIDUAL VALUE OF ALL OF PRUDENTIAL'S REALESTATE DEALS AMOUNTS TO ABOUT 11 BILLION BUT THE DIFFERENCE IN RESIDUAL VALUE COULD BE MORE SIGNIFICANT DEPENDING ON THE REALESTATE TRANSACTION IT'S NOT SIMPLY A MATTER OF AGREEING TO SOME COOKIECUTTER AND BUTTING OUT OF IT SAYS MR BRENNER DESPITE THE PRUDENTIAL CONCESSION THE AGREEMENT WON'T NECESSARILY PROVIDE A WINDFALL FOR INVESTORS INDEED THE PRICE INVESTORS COULD FETCH FOR MANY PARTNERSHIPS IN THE MARKET IS BARELY HALF WHAT PRUDENTIAL CLAIMS ACCORDING TO SOME PARTNERSHIP EXPERTS THUS SOME LAWYERS ARE URGING THEIR CLIENTS TO SELL THEIR PARTNERSHIPS IN THE SECONDARY MARKET TO SHOW HOW LITTLE THEY'RE ACTUALLY WORTH IF INVESTORS DECIDE TO SELL THEIR PARTNERSHIPS THE MONEY THEY WILL RECEIVE WILL BE COUNTED AS A RETURN OF CAPITAL THE CLAIMS ADMINISTRATOR SAID THIS WILL BE TAKEN INTO ACCOUNT IN FIGURING HOW TO COMPENSATE A PERSON WHO DESERVES TO BE COMPENSATED SAYS MR BRENNER ASSUMING A CLAIMANT HAS A VALID CLAIM WHAT THEY RECEIVE FOR SELLING A PARTNERSHIP WILL BE TREATED LIKE A RETURN OF CAPITAL BUT INVESTOR PAYOUTS SO FAR HAVEN'T BEEN PRUDENTIAL'S BIGGEST EXPENSE IN THE SETTLEMENT PROCESS PRUDENTIAL HAS SPENT ABOUT 5 MILLION IN COMPUTERS AND PERSONNEL TO MANAGE THE CLAIMS PROCEDURE 9402160196 940216 MARKETING BY GABRIELLA STERN SOMETIMES A SIMPLE BIRTHDAY CARD JUST ISN'T ENOUGH IF YOU'RE A STRAIGHT SINGLE WOMAN FOR INSTANCE LOOKING FOR A CARD FOR A GAY MALE FRIEND YOU MIGHT WANT SOMETHING A LITTLE DIFFERENT POSSIBLY A CARD THAT SAYS YOU'VE GOT EVERYTHING A GIRL LIKE ME DESIRES IN A GUY CHARM SENSITIVITY COLORCOORDINATION KNOW ANY STRAIGHT MEN LIKE YOU HAPPY BIRTHDAY HANDSOME CARDS ORIENTED TO A GAY CLIENTELE OR THEIR FRIENDS AND RELATIVES ARE VIRTUALLY IMPOSSIBLE TO FIND THEY'VE TENDED TO BE THE EXCLUSIVE PURVIEW OF SPECIALTY STORES AND ALTERNATIVE BOUTIQUES SOON HOWEVER FOUR DAYTON HUDSON STORES TWO DAYTON STORES IN MINNEAPOLIS AND TWO MARSHALL FIELD'S STORES IN CHICAGO WILL BEGIN TESTING A LINE OF CARDS DESIGNED TO BE SENT BETWEEN STRAIGHT AND GAY PEOPLE AS WELL AS BETWEEN GAYS THE CARDS ARE MADE BY A SMALL CHICAGOBASED COMPANY CALLED CARDTHARTIC AND SOLD UNDER THE BRAND NAME THROUGH OUR EYES DAYTON HUDSON BELIEVES IT'S ONE OF ONLY A FEW MAINSTREAM RETAIL CHAINS TO CARRY SUCH CARDS IT'S THE FIRST LINE THAT REALLY WORKS WITH THE ALTERNATIVE LIFESTYLES OF THESE PEOPLE AND PUTS TOGETHER A REALLY NICE FRESH SENTIMENT SAYS MARY JOSEPH SENIOR BUYER OF STATIONERY FOR DAYTON HUDSON'S DEPARTMENT STORE UNIT CARDTHARTIC STARTED A YEAR AGO MAKING GAYTOGAY CARDS BUT HAS EXPANDED INTO WHAT IT CALLS STRAIGHTTOGAY OR PROGAY CARDS TRADITIONALLY THE GAY GREETING CARD CATEGORY HAS BEEN BUILT ON THE HOMOEROTIC OR BEEFCAKE CARDS SAYS PRESIDENT AND FOUNDER JODEE STEVENS THAT'S STILL THE MAJORITY OF THE MARKET BUT OUR CROSSOVER CARDS ARE NEW MS STEVENS SAYS THE FIRST BATCH OF PROGAY CARDS WERE FOR STRAIGHT WOMEN AND GAY MALES TO SEND TO EACH OTHER IN THE NEXT RELEASE THERE'LL BE CARDS FOR GAY MEN AND THEIR MOMS SIBLINGS AND OTHER FAMILY MEMBERS TO SEND TO EACH OTHER SHE SAYS THERE DOESN'T APPEAR TO BE MUCH DEMAND FOR CARDS FOR STRAIGHT MEN TO SEND TO LESBIAN FRIENDS NEW REDUCEDFAT PEANUT BUTTER PRODUCTS ARE DRIVING PEANUT GROWERS NUTS THE GOOBER INDUSTRY CLAIMS THE BRANDS SHOULDN'T CALL THEMSELVES PEANUT BUTTERS BECAUSE PEANUTS REPRESENT LESS THAN 90 OF THEIR INGREDIENTS AND THUS VIOLATE THE FOOD AND DRUG ADMINISTRATION'S DEFINITION OF PEANUT BUTTER PEANUT FARMERS WANT THE UPSTARTS TO BE LABELED PEANUT SPREADS WITH THE EXACT PEANUT PERCENTAGE ON THE LABELS THE ATLANTABASED PEANUT ADVISORY BOARD WHICH REPRESENTS SOUTHEASTERN PEANUT GROWERS HAS FILED A COMPLAINT WITH THE FDA ABOUT CONAGRA'S NEW PETER PAN SMART CHOICE WHOSE LABEL INCLUDES THE WORDS REDUCEDFAT PEANUT BUTTER AND PROCTER & GAMBLE WHICH MAKES THE NO 1 PEANUT BUTTER JIF AND DOESN'T PLAN A REDUCEDFAT VERSION HAS ASKED THE FDA TO CLARIFY THE ISSUE CPC INTERNATIONAL'S SKIPPY REDUCED FAT PEANUT BUTTER IS JUST HITTING STORES AS SOON AS WE SEE IT WE'LL PROBABLY FILE A COMPLAINT ON THAT AS WELL SAYS THE PEANUT BOARD'S EXECUTIVE DIRECTOR MITCH HEAD CONAGRA AND CPC INTERNATIONAL ARE FIGHTING BACK CLAIMING THE PRODUCTS COMPLY WITH FDA RULES THOUGH THEY'RE LESS THAN 90 PEANUTS MOREOVER A CONAGRA SPOKESWOMAN SAYS IT'S UNWISE FOR THE INDUSTRY TO CHALLENGE THE NEW PRODUCTS BECAUSE THEY MIGHT HELP REVIVE THE 800 MILLION PEANUTBUTTER CATEGORY WHICH HAS SEEN SALES SLIP IN RECENT YEARS AN FDA SPOKESMAN SAYS THE AGENCY IS PONDERING THE MATTER VISIT A DRUG STORE AND YOU'LL FIND SHELVES CRAMMED WITH PAIN RELIEVERS ENOUGH TO GIVE SHOPPERS A POWERFUL HEADACHE SO WHY WOULD SHOPPERS WANT TO TRY A NEW NONPRESCRIPTION ANALGESIC WHEN THEY CAN BUY BIG BRANDS LIKE TYLENOL ADVIL AND BAYER OR CHEAPER PRIVATELABEL PRODUCTS CONTAINING IBUPROFEN ACETAMINOPHEN AND ASPIRIN THAT'S A QUESTION PROCTER & GAMBLE AND SYNTEX MUST TACKLE THIS SPRING WHEN THEY INTRODUCE THE FIRST NONPRESCRIPTION PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT IN ABOUT A DECADE THE UPSTART BRAND CALLED ALEVE CONTAINS NAPROXEN THE MAIN INGREDIENT IN SYNTEX'S NAPROSYN A WIDELY PRESCRIBED ANALGESIC P&G WHICH IS MARKETING ALEVE WANTS TO BECOME A MAJOR PLAYER IN THE ANALGESIC INDUSTRY THOUGH IT FAILED IN THE MID1980S WITH ENCAPRIN A COATED ASPIRIN IN CAPSULE FORM MOREOVER P&G IS MOVING TO BEEF UP ITS PRESCRIPTION AND OVERTHECOUNTER HEALTHCARE LINEUP ANALYSTS EXPECT HEIGHTENED COUPONING TRADE PROMOTIONS AND ADVERTISING BY COMPETING BRANDS IN THE ANALGESIC MARKET BUT THEY ALSO BELIEVE PATIENTS WILL TRY ALEVE BECAUSE MOST PAIN SUFFERERS ARE WILLING TO EXPERIMENT WITH REMEDIES MOREOVER ALEVE BOTTLES WILL HAVE A NEWLY PATENTED SQUEEZABLE CAP WHICH IS EASY FOR ARTHRITIS SUFFERERS TO OPEN AND IS CHILDRESISTANT EARLY ADS FOR ALEVE ARE EXPECTED TO TARGET SEVERAL AUDIENCES INCLUDING PEOPLE WITH SPORTSRELATED ACHES AND PAINS A GROUP THAT HAS BEEN VIRTUALLY OVERLOOKED BY THE INDUSTRY ACCORDING TO ANALYST JAMES KEENEY OF MABON SECURITIES AND P&G IS ALREADY MAKING MUCH OF THE FACT THAT ALEVE IS TAKEN EVERY EIGHT TO 12 HOURS WHILE COMPETING ANALGESICS LAST BETWEEN FOUR AND EIGHT HOURS LYRRUS FOUNDED BY GUITARPLAYING FORMER ENGINEERING STUDENTS MARKETS SOFTWARE CALLED GVOX THAT GIVES GUITAR LESSONS STUDENTS CAN PLUG GUITARS ACOUSTIC OR ELECTRIC INTO PERSONAL COMPUTERS A BALTIMORE DENTIST WANTS FELLOW PRACTITIONERS TO BUY HIS DINOSAURLIKE CARTOON CHARACTER RELAXADACTYL AND USE IT ON SMALL GIVEAWAYS LIKE MAGNETS AND TSHIRTS TO SOOTHE PATIENTS GOING TO THE DENTIST SHOULD NOT BE A PTEROFYING EXPERIENCE SAYS THE DENTIST ROBERT N SPIEGEL AWARE THAT MORE PEOPLE ARE EATING PUNGENT FOODS AT THEIR DESKS DAVSTAR CALIFORNIA HAS INTRODUCED ADZORBSTAR WHICH IT SAYS ELIMINATES UNPLEASANT ODORS AND COMES IN SMALL SIZES TO FIT ON A DESK OR BOOKSHELF 9402160195 940216 TEXAS JOURNAL ALL QUIET ON THE SUPERMARKET WAR FRONT AND THE IMPLICATION FOR CONSUMERS PRICES ARE STARTING TO RISE BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS GROCERY WARS APPEAR TO BE HEADED FOR A CEASEFIRE AFTER THREE YEARS OF RUTHLESS WARFARE FOR THE HEARTS AND POCKETBOOKS OF TEXAS SHOPPERS MAJOR GROCERYSTORE CHAINS ARE STARTING TO NUDGE UP PRICES OR AT LEAST SLOW THE FREE FALL ACCORDING TO ANECDOTAL EVIDENCE BACKED UP BY A STUDY DONE FOR TEXAS JOURNAL BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE BY ANALYZING CASHREGISTER RECEIPTS FROM STORES AROUND THE STATE THE CHICAGOBASED MARKETRESEARCH COMPANY CONCLUDED THAT THE COST OF A SAMPLE BASKET OF THREEDOZEN NATIONALBRAND GOODS RANGING FROM BOUNTY PAPER TOWELS TO VELVEETA CHEESE DROPPED TO 8166 IN 1993 JUST SIX CENTS LESS THAN THE AVERAGE PRICE DURING 1992 BY CONTRAST THE AVERAGE PRICE FOR THE 12 MONTHS ENDED JULY 25 WAS 8140 DOWN 119 OVER THE YEAREARLIER PERIOD SOME OF THE DIFFERENCE BETWEEN THE TWO PERIODS MAY BE THE RESULT OF SEASONAL VARIATIONS WHILE THE DIFFERENCE MAY SEEM SUBTLE ANALYSTS AND INDUSTRY OFFICIALS SAY IT INDICATES HOSTILITIES ARE LESSENING HERE WHERE GROCERS COMPETE FOR ABOUT 21 BILLION IN ANNUAL SALES CONCERNED ABOUT DWINDLING PROFIT MARGINS AND IN MANY CASES COPIOUS RED INK STORES ARE CUTTING BACK EXPANSION PLANS CURTAILING PROMOTIONS AND MOST IMPORTANT HOLDING THE LINE ON PRICE CUTS AS A RESULT THE PENDULUM IS STARTING TO SWING AGAINST THE CONSUMER FRANKLY I THINK THE WORST OF IT IS OVER SAYS RANDALL ONSTEAD PRESIDENT OF RANDALL'S FOOD MARKETS INC IN HOUSTON THE LATEST INFORMATION RESOURCES NUMBERS WHICH ARE BUTTRESSED BY THE LABOR DEPARTMENT'S CONSUMERPRICE FIGURES ALSO PLACE TEXAS AT ODDS WITH NATIONAL TRENDS IN CONTRAST WITH YEARS PAST WHEN CUTTHROAT COMPETITION FORCED TEXAS GROCERY PRICES DOWN FASTER THAN THOSE IN THE REST OF THE NATION INFOSCAN FOUND THAT IN 1993 THE AVERAGE NATIONAL PRICE OF THE SAMPLE BASKET FELL 106 TO 8138 ONE MAJOR FACTOR IN THE SHIFT HAS BEEN THE BLUNTING OF THE INVASION OF TEXAS LAUNCHED BY FOOD LION INC THE AGGRESSIVE NORTH CAROLINABASED UNIT OF DELHAIZE LE LION SA OF BELGIUM IN 1991 INITIALLY FOOD LION'S ROCKBOTTOM PRICES FORCED COMPETITORS INTO A NASTY PRICE WAR BUT MARKETING STUMBLES ALONG WITH AN INVESTIGATION BY PRIMETIME LIVE IN NOVEMBER 1992 INTO ALLEGED IMPROPRIETIES IN THE CHAIN'S MEAT DEPARTMENT STALLED FOOD LION'S MOMENTUM AND NOW IT SAYS IT WILL CLOSE 36 OF ITS 82 TEXAS STORES THIS YEAR FOOD LION WASN'T THE ONLY CASUALTY HOUSTONBASED FIESTA MART INC CLOSED A BIG CLEAR LAKE STORE LAST YEAR AND HAS POSTPONED PLANS TO ADD SIX STORES IN DALLAS IT WILL ADD ONLY ONE FOR NOW EVEN SAN ANTONIOBASED HEB GROCERY CO WHILE REMAINING STRONG HAS SLOWED ITS HOUSTON BUILDING SCHEDULE AFTER OPENING A STORE A WEEK AT ONE POINT IN 1992 OVERALL THE 30 GROCERYSTORE CHAINS COMPETING IN THE STATE'S MARKET SAY THAT AFTER STORE CLOSINGS AND OPENINGS ARE TAKEN INTO ACCOUNT THEY ADDED A NET OF ONLY ABOUT 30 STORES STATEWIDE IN 1993 COMPARED WITH 40 IN 1992 AND NEARLY 60 IN 1991 STANLEY SHIPLEY A SENIOR ECONOMIST AT LEHMAN BROTHERS GIVES ANOTHER REASON FOR THE TURNAROUND THE TEXAS ECONOMY IS PROBABLY BETTER THAN MOST PLACES ACROSS THE NATION HE SAYS SO THE PRESSURE ON RETAILERS TO GRAB SOMEONE ELSE'S MARKET SHARE IS LOWER SINCE THE TEXAS GROCERY PICTURE VARIES A LOT WITHIN THE STATE IT PAYS TO LOOK AT IT REGION BY REGION HERE'S A SNAPSHOT OF FOUR MAJOR AREAS IN TEXAS DALLASFORT WORTH THE MOTHER OF ALL TEXAS GROCERY WARS BEGAN HERE IN 1991 WHEN FOOD LION STORMED IN AND OPENED 42 STORES IN JUST FOUR MONTHS WEEKS BEFORE THE OPENINGS ESTABLISHED GROCERS SUCH AS ALBERTSON'S INC OF BOISE IDAHO DALLASBASED CULLUM CO'S TOM THUMB STORES SINCE BOUGHT BY RANDALL'S AND CINCINNATIBASED KROGER CO SLASHED THEIR OWN PRICES TO SOLIDIFY CUSTOMER LOYALTY BUT FOOD LION'S ROAR TURNED OUT TO BE WORSE THAN ITS BITE THE CHAIN'S TEXAS GRAND OPENING WAS ON A FRIDAY THE 13TH AND STORE MANAGERS JOKINGLY PASSED AROUND RABBITS' FEET BUT THE GOODLUCK CHARM APPARENTLY DIDN'T WORK BY THE END OF 1993 FOOD LION HAD CAPTURED ONLY 58 OF GROCERY SALES IN GREATER DALLAS ACCORDING TO ESTIMATES FROM MARKET METRICS INC A CONSULTING FIRM IN LANCASTER PA WHILE MANY OBSERVERS INCLUDING FOOD LION ITSELF BLAME ITS TROUBLES ON THE PRIMETIME LIVE SHOW THE CHAIN'S TEXAS TROUBLES ACTUALLY BEGAN MUCH EARLIER FOOD LION WAS IN TROUBLE IN TEXAS BEFORE PRIMETIME EVER AIRED SAYS APPLETREE MARKETS INC VICE PRESIDENT RICHARD GOEGGEL THEY MADE A STRATEGIC ERROR TO PURCHASE USING NORTH CAROLINA BROKERS THEY MISUNDERSTOOD HOW WEDDED THE TEXAN IS TO CERTAIN CONSUMER BRANDS SUCH AS RANCH STYLE BEANS FOOD LION WHILE IT STILL USES NORTH CAROLINA BROKERS NOW TAILORS ITS SELECTION TO TEXAS TASTES A SPOKESMAN SAYS AS FOOD LION FALTERED SO DID THE GROCERY WARS ACCORDING TO INFORMATION RESOURCES THE PRICE OF THE BASKET OF GOODS IN DALLAS STORES IN 1993 WAS UP 67 CENTS OVER 1992 INFORMATION RESOURCES WON'T GIVE THE ABSOLUTE COST OF THE BASKET IN EACH MARKET ONLY HOW MUCH IT CHANGED CPI DATA MEANWHILE SHOW THAT DALLASAREA SUPERMARKET PRICES ROSE 33 IN DECEMBER 1993 FROM THE YEAREARLIER PERIOD HOUSTON WHILE DALLAS SAW SOME OF THE EARLIEST GROCERY WARS HOUSTON SAW THE FIERCEST PARTICULARLY IN THE FIRST SIX MONTHS OF 1993 THE AVERAGE PRICE OF THE INFORMATION RESOURCES GROCERY BASKET IN HOUSTON DURING 1993 DROPPED 130 FROM THE 1992 AVERAGE PRICE IT WAS THE ONLY DIP OF ANY TEXAS REGION AND SINGLEHANDEDLY DRAGGED DOWN THE STATE AVERAGE THE INTENSE WAR HAS CLAIMED MANY VICTIMS UNABLE TO MAKE MONEY AT ROCKBOTTOM PRICES SMALL CLOSELY HELD FOOD KING CORP CLOSED SIX STORES IN 1992 AND SOLD OFF THREE LAST YEAR SAYS CONTROLLER CAROL VYKUKAL CALIFORNIABASED PRICE CO CLOSED ITS HOUSTON PRICE CLUB STORE IN SEPTEMBER AND FOOD LION WHICH HEB'S SIMILARSIZED PANTRY STORES BEAT INTO THE MARKET BY NEARLY A YEAR GOT PUMMELED BY COMPETITION AND IS CLOSING HALF OF ITS 13 HOUSTONAREA STORES THIS YEAR BUT NOW THE WORST APPEARS TO BE OVER AND THE PLAYERS THAT ARE LEFT MAY SEE PROFITS IMPROVE STORES SAY SALES ROSE SIGNIFICANTLY IN THE FOURTH QUARTER AND THE HOUSTON CPI INDEX SHOWS FOOD PRICES ROSE 8 FROM JUNE TO DECEMBER ALBERTSON'S WHICH IS ALREADY IN MOST OTHER TEXAS AREAS IS THE WILD CARD IT COULD REIGNITE THE BATTLE IF IT DECIDES TO ENTER THE MARKET WE HAVE LOOKED AROUND HOUSTON BUT HAVEN'T MADE ANY COMMITMENTS SAYS MICHAEL REULING EXECUTIVE VICE PRESIDENT OF STORE DEVELOPMENT AT THE EARLIEST HE SAYS NEW STORES COULD OPEN IN LATE 1995 SOUTH AND CENTRAL TEXAS WHAT HAS BEEN HAPPENING IN SAN ANTONIO CORPUS CHRISTI AND AUSTIN IS BEST DESCRIBED NOT AS A GROCERY WAR BUT AS HEB SHOOTING DOWN EVERYONE WHO THREATENS ITS HOME TURF KROGER WAS THE LATEST VICTIM UNABLE TO MATCH HEB'S BARGAINBASEMENT PRICES BECAUSE OF HIGHER UNIONIZED LABOR COSTS THE CHAIN LAST SUMMER SOLD ITS 15 SAN ANTONIO STORES TO MEGAFOODS STORES INC OF MESA ARIZ HEB'S PRICE VIGILANCE COULD EXPLAIN WHY SOUTH CENTRAL TEXAS IS THE CHEAPEST REGION IN INFORMATION RESOURCES' SURVEY OF THE STATE STILL TEXANS IN THE REGION FOUND IN 1993 THAT WHILE THE GETTING WAS GOOD IT WAS AS GOOD AS IT WAS GOING TO GET PRICES ON THE BASKET WERE UP 11 CENTS IN 1993 ACCORDING TO INFORMATION RESOURCES WEST TEXAS WEST TEXAS SEEMS TO BE THE REGION TH AT THE GROCERY WARS FORGOT DOUBLE AND TRIPLE COUPONS ARE RARE THE WEST TEXASNEW MEXICO REGION IN THE INFORMATION RESOURCES SURVEY WAS ALREADY THE MOST EXPENSIVE OF ALL TEXAS REGIONS IN 1993 AND THE PRICE OF THE BASKET ROSE 61 CENTS OVER 1992 LEVELS COMPETITION IS RARER HERE BECAUSE BIG CHAINS MOSTLY STEER CLEAR OF THE AREA WHICH IS SPARSELY POPULATED AND FAR FROM CHAINS' BIGCITY DISTRIBUTION CENTERS BUT DON'T WRITE OFF WEST TEXAS ENTIRELY WALMART STORES INC BASED IN BENTONVILLE ARK BUILT A SUPERCENTER IN ODESSA LAST YEAR OFFERING SOME NEW COMPETITION TO ALBERTSON'S WHICH HAD NEARLY HALF THE MARKET SHARE IN THAT CITY AT THE END OF LAST YEAR ACCORDING TO MARKET METRICS MEANWHILE IN EL PASO MIDLAND AND ODESSA A CHAIN OF STORES IS BECOMING A RIVAL TO ALBERTSON'S OUR PHILOSOPHY IS EVERYDAY LOW PRICES SAYS BUZ DOYLE VICE PRESIDENT OF MARKETING AT FURR'S SUPERMARKET INC FORMED IN 1991 BY A MANAGEMENTLED BUYOUT OF FURR'S INC 9402160194 940216 BUSINESS BRIEF LIMITED NET FELL 20 IN FISCAL 4TH PERIOD ON SOFT APPAREL SALES COLUMBUS OHIO SPECIALTY RETAILER LIMITED INC FACED WITH SOFT INDUSTRYWIDE WOMEN'S APPAREL SALES SAID NET INCOME FOR THE FISCAL FOURTH QUARTER FELL 20 NET INCOME ALSO FELL SIGNIFICANTLY FOR THE FISCAL YEAR ENDED JAN 29 BUT LIMITED SAID IT WILL CONTINUE AN AGGRESSIVE STOREREMODELING CAMPAIGN ACROSS ITS VARIOUS RETAILING FORMATS THAT INCLUDES OPENING 400 NEW STORES IN ADDITION LIMITED WILL CLOSE ABOUT 100 STORES THIS YEAR LARGELY AMONG THE LERNER AND LIMITED STORE DIVISIONS THE CLOSINGS ARE PART OF A PREVIOUSLY ANNOUNCED REDUCTION IN STORES LIMITED REPORTED THAT FOR THE FISCAL FOURTH QUARTER NET INCOME TOTALED 1963 MILLION OR 54 CENTS A SHARE COMPARED WITH 2439 MILLION OR 67 CENTS A SHARE FOR THE YEAREARLIER QUARTER SALES ROSE 43 TO 242 BILLION FROM 232 BILLION FOR THE YEAREARLIER QUARTER EXCLUDING SALES FROM THE BRYLANE DIVISION IN EACH PERIOD IN AUGUST 1993 LIMITED SOLD A 60 INTEREST IN THE BRYLANE DIVISION THE RETAILER OPERATES 4623 SPECIALTY STORES UNDER THE NAMES LIMITED STORES VICTORIA'S SECRET AND BATH & BODY WORKS AMONG OTHERS FOR THE FISCAL YEAR NET INCOME FELL 14 TO 391 MILLION OR 108 A SHARE FROM 4555 MILLION OR 125 A SHARE FOR THE YEAREARLIER PERIOD SALES HOWEVER ROSE 76 TO 725 BILLION FROM 673 BILLION FOR THE YEAREARLIER PERIOD EXCLUDING BRYLANE SALES IN EACH COMPARABLE PERIOD LESLIE H WEXNER LIMITED'S CHAIRMAN AND CHIEF EXECUTIVE GAVE NO REASON FOR THE DROP IN NET INCOME BUT PREVIOUSLY HAD SAID 1993 RESULTS WOULD BE SLIGHTLY BELOW EARLIER FORECASTS DUE TO SEVERE JANUARY WEATHER AND THE LOS ANGELES EARTHQUAKE ANALYSTS EXPECTED THE NET DECLINES BUT NOTED THEY ARE INDICATIVE OF AN INDUSTRYWIDE DECLINE IN WOMEN'S APPAREL SALES LIMITED DIDN'T HAVE A GREAT CHRISTMAS BUT APPAREL SALES OVERALL DIDN'T DO WELL SAID LINDA MORRIS AN ANALYST WITH PNC BANK WHAT'S NEEDED IS A NEW FASHION STATEMENT THE CONSUMER WILL GO FOR WHETHER IT'S AT THE LIMITED OR THROUGHOUT THE WHOLE INDUSTRY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY LIMITED SHARES ROSE 25 CENTS TO 17125 9402160193 940216 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON SUSAN MAYER 44 YEARS OLD WAS PROMOTED FROM VICE PRESIDENT TO SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT A NEW POSITION AT THIS TELECOMMUNICATIONS COMPANY 9402160192 940216 KILLING DRUG RESEARCH KILLS PEOPLE EXPENSIVE DRUGS LOWER HEALTH CARE COSTS BY JD KLEINKE GIVEN PRESIDENT CLINTON'S TASTE FOR INDUSTRIAL POLICY AND GLOBAL ECONOMICS IT IS DOUBLY DISMAYING THAT HIS HEALTH CARE PLAN INCLUDES A POPULIST DEMONIZATION RATHER THAN A NEW DEMOCRAT'S EMBRACE OF THE US PHARMACEUTICAL INDUSTRY THE PRESIDENT HAS SUBMITTED LEGISLATION THAT IS CERTAIN TO DRAIN AWAY INNOVATION COMPETITIVENESS AND GLOBAL MARKET SHARE THOUGH STILL ON THE DRAWING BOARD THE HEALTH CARE PLAN WITH ITS NATIONAL BOARD APPOINTED TO SET PRICES FOR BREAKTHROUGH DRUGS HAS ALREADY SCARED OFF INVESTMENT CAPITAL AND SCUTTLED THE PLANS OF AMERICAN DRUG AND BIOTECH COMPANIES INTERNAL AND EXTERNAL RISK CAPITAL HAS DRIED UP FORCING COMPANIES TO SHELVE NEW PRODUCTS CUT R&D CANCEL WAVES OF RECRUITMENT AND ISSUE TENS OF THOUSANDS OF PINK SLIPS THIS IS INDEED A SAD STATE OF AFFAIRS FOR WHAT AMOUNTS TO ONLY 7 OF TOTAL US HEALTH CARE COSTS DELIVERED BY A NET EXPORTING INDUSTRY THAT TURNS BASIC RESEARCH INTO MARKETABLE PRODUCTS WHILE CREATING AND SUSTAINING HIGHSKILL JOBS RESEARCH BY BRANDEIS UNIVERSITY'S ROBERT GOLDBERG REVEALS THAT AMONG GLOBAL COMPETITORS THERE IS A PERFECTLY INVERSE RELATIONSHIP BETWEEN DRUG PRICE REGULATION AND NEW PRODUCT INNOVATION AS MEASURED BY PRODUCT INTRODUCTIONS AND WORLDWIDE MARKET SHARE RELATIVE TO DOMESTIC MARKET SIZE EVERY TIME A NONJAPANESE NATION HAS INSTITUTED PRICE CONTROLS ON DRUGS ITS DRUG COMPANIES HAVE RECHANNELED DEVELOPMENT EFFORTS TOWARD COMMODITIZING EXISTING PRODUCTS RATHER THAN PURSUING BREAKTHROUGH CURES AND EACH NATION'S DRUG INDUSTRY HAS COLLECTIVELY LOST MARKET SHARE TO US FIRMS THAT WERE CAPITALIZED BY A FREE MARKET TO PURSUE THE NEXT BIG CURE AND THEN THERE IS JAPAN WHICH EXERTS WIDESPREAD PRICE CONTROLS BUT IN A MANNER THAT AGGRESSIVELY ENCOURAGES AND REWARDS NEW DRUG R&D THE PRICES FOR EXISTING PRODUCTS SYSTEMATICALLY DECREASE EVERY TWO YEARS WHILE NEW COMPOUNDS ENJOY A PREMIUM TWO TO THREE TIMES THAT OF FREE MARKET US PRICES THIS STRATEGY IS JAPAN'S RECOGNITION OF A NATURAL PRODUCT CYCLE THAT IS PRECISELY WHAT THOSE IN WASHINGTON DENY IN THE DEBATE AND THEN SEEK TO DESTROY THROUGH LEGISLATION PREMIUM PRICES LEAD TO PROFITS THAT ACCELERATE THE DEVELOPMENT OF BETTER PRODUCTS A DRUG'S PRICE IS HIGH NOT ONLY BECAUSE THE COST OF DEVELOPING THAT ONE COMPOUND IS ENORMOUS THE PRICE IS HIGH ALSO BECAUSE FOR EACH COMPOUND THAT FLIES HUNDREDS DO NOT RESTRAIN PRICES ON THE DRUGS THAT DO FLY AND YOU MUST IMPROVE THE ODDS FROM THE OUTSET THIS TRANSLATES INTO A COMMENSURATE REDUCTION IN RISKTAKING AND INNOVATION WHICH IN TURN TRANSLATES INTO FORSAKEN CURES UNDER THIS SCENARIO WE END UP WITH PRECISELY WHAT GOVERNMENTMANDATED PRICE CONTROLS PROMISE COMPANIES THAT FUNCTION MORE LIKE PUBLIC UTILITIES PRODUCING LOWRISK COMMODITIES INDISTINGUISHABLE FROM EACH OTHER INSTEAD OF PRODUCTS OF EXCELLENCE THAT COMMAND PREMIUM DOLLARS UNDER THE THREAT OF DRUG PRICE CONTROLS 5208 MILLION IN DRUG AND DEVICE ISSUES PUBLIC AND PRIVATE STOCK OFFERINGS WERE CANCELED IN 1993 ACCORDING TO COMMSCAN A MONITOR OF EQUITY DEAL ACTIVITY WHILE SUCH DEALS TYPICALLY FUND HIGHLY CAPITALINTENSIVE R&D THEY ALSO MANAGE TO CREATE ONE FULLTIME JOB FOR EVERY 135000 RAISED AT THIS RATE 1993'S CANCELED FINANCINGS THWARTED THE CREATION OF 3858 JOBS ADD THIS FIGURE TO THE 35000 PINK SLIPS ISSUED BY PHARMACEUTICAL MAKERS SINCE THE HEALTH CARE DEBATE BEGAN LAST WINTER AND THE CLINTONS CAN TAKE CREDIT FOR NEARLY 39000 LOST JOBS AND EVERY ONE OF THEM WAS A HIGHWAGE HIGHSKILLBASED HIGHTECH JOB THE KIND CANDIDATE CLINTON PROMISED TO CREATE OF COURSE THE OBSESSION WITH CONTROLLING DRUG PRICES MAY BE LESS DEMAGOGIC AND MORE THE RESULT OF THE GOVERNMENT'S NEED TO LOWER ITS OWN DRUG BILL ESPECIALLY NOW THAT IT HAS OFFERED PRESCRIPTION COVERAGE TO MEDICARE BENEFICIARIES BUT IF THE GOVERNMENT WANTS TO CONTROL HEALTH CARE COSTS IT SHOULD DO EVERYTHING IT CAN TO ENCOURAGE PREMIUM DRUG PRICES THE RESULT WOULD BE MORE R&D ON EVER SUPERIOR DRUG THERAPIES WHICH IN TURN WOULD SUPPLANT MORE OF THE EXPENSIVE MEDICAL INTERVENTIONS THE GOVERNMENT NOW BUYS THIS REASONING FOLLOWS THE FUNDAMENTAL PARADOX OF MEDICAL CARE KNOWN AS PHARMACOECONOMICS THAT EXPENSIVE DRUGS LOWER HEALTH CARE COSTS PHARMACOECONOMICS IS THE REASON DRUG COMPANIES ARE SO PROFITABLE HIGHERTECH DRUGS BRING TREMENDOUS MEASURABLE VALUE AS SUBSTITUTE GOODS IN A COMPETITIVE THERAPEUTIC MARKETPLACE A NEW DRUG THAT HAS THE POTENTIAL TO PREVENT A HOSPITALIZATION ELIMINATE A SURGERY OR GET A PATIENT OUT OF THE ICU FASTER HAS EVERY RIGHT TO BE PRICED FOR VALUE NOT COST AND THE VALUE IN THE CASE OF REDUCED RESOURCE CONSUMPTION IS USUALLY ENORMOUS EVERY STUDY OF HOSPITAL CLINICAL PATTERNS CONDUCTED BY OUR FIRM INDICATES THAT THE CUMULATIVE DIFFERENCES BETWEEN THE LEAST EFFICIENT MEDICAL PATHWAY AND THE BEST APPROACH REPRESENT MULTIBILLIONDOLLAR POTENTIAL SAVINGS FOR THE HEALTH CARE ECONOMY HOSPITALS ARE ACTIVELY PURSUING SUCH SAVINGS THEIR CONTINUED PROGRESS THE MOST PROFOUND REFORM OF ALL WILL REQUIRE CONTINUAL DEVELOPMENT OF EVER BETTER IF PREMIUM PRICED MEDICINES UNFORTUNATELY A PHARMACOECONOMIC COSTBENEFIT IS DIFFICULT TO CONVEY DURING THE 30SECOND ATTENTION SPAN OF POPULAR POLITICAL DISCOURSE THE DRUG INDUSTRY RECOGNIZES THE DIFFICULTY OF CONVINCING VOTERS INSULATED FROM THE 46000 PRICE TAG FOR A CORONARY BYPASS OF THE VALUE OF A 60 PER MONTH CHOLESTEROLLOWERING DRUG THAT POSTPONES OR PREVENTS THOUSANDS OF BYPASSES EVERY YEAR IF CLINTON DRUG PRICE CONTROLS BECOME LAW IT WILL BE HARDER STILL TO EXPLAIN THAT 10 OF THIS 60 COULD HAVE GONE INTO DEVELOPING A PRODUCT THAT MIGHT HAVE SPARED AMERICANS FROM THE NOW INCURABLE DISEASE THAT WILL EVENTUALLY CLAIM THEM MR KLEINKE IS A PRINCIPAL WITH HCIA A HEALTH CARE DATA ANALYSIS AND RESEARCH FIRM HEADQUARTERED IN BALTIMORE SEE RELATED ARTICLES CLINTON RATIONS FUTURE CURES DEMOGRAPHY AND TECHNOLOGY TIME BOMB AND THE MORAL BATTLE PLAN WSJ FEB 16 1994 9402160191 940216 KILLING DRUG RESEARCH KILLS PEOPLE THE MORAL BATTLE PLAN BY JAMES DRISCOLL UNLIKE OTHER INDUSTRIES PHARMACEUTICALS AND BIOTECHNOLOGY PURSUE A UTOPIAN GOAL FREEING HUMANITY FROM DISEASE YET FEW AMONG THE AMERICAN PUBLIC UNDERSTAND THE DRUG DEVELOPMENT PROCESS AS A RESULT THE HEALTHY PROFITS NEEDED TO FINANCE PRIVATE RESEARCH ARE TEMPTING TARGETS FOR DEMAGOGUERY TEMPTED THE CLINTON ADMINISTRATION IS BASHING HIGH DRUG PRICES TO SCARE UP SUPPORT FOR ITS NEW REGULATORY ONSLAUGHT PRESIDENT CLINTON HAS PROPOSED AN ELABORATE SYSTEM OF PRICE REVIEWS BLACKLISTS AND MANDATED REBATES THAT ESTABLISH PRICE CONTROLS IN EFFECT IF NOT IN NAME AT STAKE IS PRIVATELY FINANCED RESEARCH ON ALL NEW DRUGS AND BIOTECHNOLOGY AT STAKE ALSO ARE THE COST OF HEALTH CARE AND THE LIVES OF COUNTLESS AMERICANS WITH AIDS CANCER AND OTHER KILLERS REDUCING COSTS AND SAVING LIVES BOTH DEPEND ON TREATMENT BREAKTHROUGHS WHAT CAN THE PRIVATE COMPANIES DO TO MAKE THE PUBLIC UNDERSTAND THE REAL STAKES OF DRUG PRICE REGULATION MINORITIES GAYS AND LESBIANS COULD ALSO BECOME HELPFUL ALLIES BECAUSE OF AIDS AND BREAST CANCER GAYS AND LESBIANS HAVE A HEAVY STAKE IN DRUG RESEARCH THE SAME IS TRUE FOR MINORITIES AIDS HYPERTENSION SICKLE CELL ANEMIA AND OTHER DISEASES AFFECT THEM DISPROPORTIONATELY AMERICANS WANT NO DELAYS IN RESEARCH ON BETTER TREATMENTS FOR AIDS CANCER AND OTHER KILLERS THEY ARE FED UP WITH THE HIGH COST OF REGULATION FOR REGULATION'S STAKE ECONOMICS MORALITY AND COMMON SENSE ALL SUPPORT A FREE MARKET FOR THE DRUG AND BIOTECH COMPANIES BUT TO DEFEAT PRICE REGULATION THE COMPANIES MUST FIGHT TO MAKE SURE AMERICA KNOWS THE STAKES MR DRISCOLL AN AIDS ACTIVIST IS VICE PRESIDENT FOR POLICY OF THE SAN FRANCISCOBASED DIRECT ACTION FOR TREATMENT ACCESS SEE RELATED ARTICLES EXPENSIVE DRUGS LOWER HEALTH CARE COSTS CLINTON RATIONS FUTURE CURES AND DEMOGRAPHY AND TECHNOLOGY TIME BOMB WSJ FEB 16 1994 9402160187 940216 BUSINESS BRIEF EQUITABLE POSTS PROFIT OF 839 MILLION FOR 4TH PERIOD RELIANCE GROUP HAD LOSS NEW YORK EQUITABLE COS REVERSED A YEAREARLIER LOSS FOR THE FOURTH QUARTER WHILE RELIANCE GROUP HOLDINGS INC REPORTED DISAPPOINTING RESULTS EQUITABLE WHICH SELLS LIFE INSURANCE AND OTHER FINANCIAL SERVICES EARNED 839 MILLION OR 45 CENTS A SHARE COMPARED WITH A LOSS OF 289 MILLION OR 26 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 28 TO 175 BILLION FROM 137 BILLION PROFIT FROM ITS INSURANCE BUSINESS MORE THAN DOUBLED TO 245 MILLION FROM 108 MILLION WHILE PROFIT FROM ITS INVESTMENT BUSINESSES WHICH INCLUDE BROKER DONALDSON LUFKIN & JENRETTE AS WELL A MAJORITY STAKE IN MONEY MANAGER ALLIANCE CAPITAL MANAGEMENT ROSE 54 TO 728 MILLION FROM 472 MILLION EARNINGS WERE IN LINE WITH EXPECTATIONS RELIANCE PRIMARILY A PROPERTY AND CASUALTY INSURER REPORTED A NET LOSS OF 15 MILLION OR 15 CENTS A SHARE IN PART BECAUSE OF A 279 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT A YEAR EARLIER THE COMPANY HAD A LOSS OF 796 MILLION OR 1 A SHARE PARTLY BECAUSE OF A 549 MILLION LOSS ON DISCONTINUED OPERATIONS REVENUE INCREASED 7 TO 7783 MILLION FROM 7252 MILLION RESULTS FROM CONTINUING OPERATIONS IMPROVED BUT NOT AS MUCH AS ANTICIPATED BY STOCK ANALYSTS CONTINUING OPERATIONS EARNED 129 MILLION INCLUDING A 16 MILLION TAX BENEFIT COMPARED WITH A YEAREARLIER LOSS OF 247 MILLION PROFITS WERE HELPED BY BETTER OPERATING RESULTS ON PROPERTY AND CASUALTY AND TITLE INSURANCE RELIANCE WHICH RECENTLY RAISED 200 MILLION THROUGH THE SALE OF COMMON STOCK ESTIMATED PRETAX LOS ANGELES EARTHQUAKE LOSSES OF 17 MILLION WHICH WILL BE RECOGNIZED IN THE FIRST QUARTER RELIANCE CLOSED YESTERDAY AT 6 A SHARE DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE RESULTS PROMPTED CS FIRST BOSTON TO SLASH ITS 1994 EARNINGS ESTIMATE FOR THE COMPANY TO 50 CENTS A SHARE FROM 75 CENTS ALTHOUGH IT MAINTAINED ITS BUY RECOMMENDATION THE BROKERAGE COMPANY CITED MORE CONSERVATIVE PROJECTIONS ON INVESTMENT INCOME AND THE EARTHQUAKE LOSSES SEPARATELY NYMAGIC INC A SPECIALTY PROPERTY AND CASUALTY INSURER SAID EARNINGS FELL 59 TO 25 MILLION OR 22 CENTS A SHARE FROM 6 MILLION OR 53 CENTS A SHARE MOSTLY BECAUSE OF LOSSES ON AVIATION INSURANCE AND LOWER EARNINGS ON A PROFITSHARING ARRANGEMENT WITH ITS REINSURERS THE REINSURANCE ARRANGEMENT EARNED LESS BECAUSE OF LAST YEAR'S MIDWEST FLOODS AND 1992'S HURRICANE ANDREW REINSURANCE IS A MECHANISM FOR INSURANCE COMPANIES TO SHARE RISKS WITH ONE ANOTHER REVENUE FELL 37 TO 24 MILLION FROM 381 MILLION THE 1992 FIGURE INCLUDES A ONETIME ITEM OF 152 MILLION IN PREMIUMS FROM A REINSURANCE TRANSFER 9402160186 940216 TEXAS JOURNAL CANDIDATE'S INVESTMENT CREDO DON'T LOSE BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD FISHER HAS A PROFESSIONAL REPUTATION AS A RISKAVERSE MONEY MANAGER HIS PHILOSOPHY BEST SUMMED UP BY THE RULES THAT SNAKE ACROSS HIS COMPUTER SCREEN WHEN THE MACHINE IS IDLE RULE NO 1 NEVER LOSE MONEY RULE NO 2 NEVER FORGET RULE NO 1 IT NOW SEEMS THAT MR FISHER HANDLES HIS OWN MONEY EXACTLY THE SAME WAY MR FISHER AS A DEMOCRATIC CANDIDATE FOR THE US SENATE DETAILED HIS STOCK AND BOND PORTFOLIO IN FILINGS WITH THE SENATE ETHICS COMMITTEE THE HOLDINGS WHICH A SOURCE CLOSE TO MR FISHER SAYS EXCEED 20 MILLION DISPLAY AN AFFECTION FOR EUROPEAN GOVERNMENT BONDS MONEYMARKET FUNDS AND US TREASURY NOTES AND ALMOST AN AVERSION TO THE STOCK MARKET YOU CAN TELL A LOT BY LOOKING AT SOMEONE'S PORTFOLIO SAYS FREDERICK SHAD ROWE A DALLAS MONEY MANAGER WHO AT THE REQUEST OF TEXAS JOURNAL ANALYZED MR FISHER'S INVESTMENTS HIS CONCLUSION THE PORTFOLIO IS NOT WHAT YOU'D CALL A MERRILLLYNCH WE'REBULLISHONAMERICA STANCE IT'S A VERY BATTENDOWNTHEHATCHES OUTLOOK ON THE WORLD STILL IT PROBABLY HAS BEEN A PROFITABLE ONE ALTHOUGH HIS SMALL STOCK HOLDINGS MISSED THE BULL MARKET FALLING INTEREST RATES HAVE SENT BOND PRICES SOARING MR FISHER AGREES THAT HE IS ONE OF THE MORE PLAIN VANILLA' INVESTORS BUT HE INSISTS THAT HE AND HIS COMPANY'S CLIENTS HAVE THRIVED FROM HIS CONSERVATIVE APPROACH THE ONLY WAY TO MAKE MONEY WITH MONEY IS TO TAKE LONGTERM POSITIONS MR FISHER SAYS I'M A DINOSAUR IN THE INDUSTRY AND I'M PROUD OF IT MR FISHER 44 YEARS OLD LEARNED HIS INVESTMENT PHILOSOPHY AT BROWN BROTHERS HARRIMAN & CO IN NEW YORK HE OPENED A DALLAS OFFICE FOR THE FIRM IN 1980 BREAKING AWAY TO START HIS OWN COMPANY FISHER CAPITAL MANAGEMENT IN 1987 FISHER CAPITAL MANAGES NEARLY 300 MILLION FOR ABOUT 50 WEALTHY INDIVIDUALS THE FIRM ALSO HAS A 68 MILLION HEDGE FUND VALUE PARTNERS LTD EVERY PENNY I PERSONALLY INVEST REFLECTS HOW WE INVEST OUR CLIENTS' MONEY HE SAYS WE DON'T TRADE SEPARATELY THE EXCEPTION MR FISHER'S LARGE HOLDINGS IN LIQUID INVESTMENTS MONEY TO PAY FOR HIS SENATE CAMPAIGN WHICH HE IS PRIMARILY FINANCING HIMSELF HE ALSO OWNS MORE THAN 1 MILLION IN TEXAS MUNICIPAL BONDS PURCHASED IN THE BLEAK LATE '80S THE TEXAS BONDS WERE SO UNDERPRICED BECAUSE OF CONCERNS ABOUT THE STATE'S BOND RATING MR FISHER SAYS SO WE SCOOPED THEM UP MR FISHER'S PENCHANT FOR EUROPEAN GOVERNMENT BONDS MESHES NICELY WITH HIS OBVIOUS PASSION FOR FOREIGN AFFAIRS PICTURES OF FOREIGN LEADERS COVER ONE WALL IN HIS OFFICE AND HE SPENT SIX MONTHS WORKING IN JAPAN IN 1990 BEGINNING IN ABOUT 1990 HE PURCHASED GERMAN TREASURY NOTES AND OTHER EUROBONDS CASHING OUT OF MANY IN THE PAST FEW MONTHS AND TAKING ADVANTAGE OF INTEREST RATES THAT IN THE CASE OF A SEVENYEAR GERMAN NOTE HAD FALLEN AS MUCH AS FOUR PERCENTAGE POINTS IN THREE YEARS SINCE 1991 MR FISHER HAS SHIED AWAY FROM THE STOCK MARKET AND HIS EQUITY HOLDINGS REMAIN MEAGER HE BOUGHT A HANDFUL OF MEDICALINDUSTRY STOCKS AFTER PRESIDENT CLINTON'S HEALTHCARE PROPOSAL SPARKED A WIDESPREAD SELLING FRENZY ONE HOLDING HOWEVER STANDS OUT INTERNATIONAL BUSINESS MACHINES CORP IBM HAS BEEN A DOG MR ROWE SAYS IT DEPENDS COUNTERS MR FISHER HE SAYS HIS FIRM DUMPED IBM STOCK IN MID1987 AT MORE THAN 160 A SHARE HE BOUGHT AGAIN AT ABOUT 105 AND TOOK A SMALL PROFIT AT 120 HE NOW OWNS MORE THAN 100000 OF IBM STOCK PURCHASED FOR ABOUT 41 A SHARE IT HAS BEEN TRADING AT ABOUT 54 FISHER'S PERSONAL PORTFOLIO AS OF NOV 30 1993 9402160185 940216 TEXAS JOURNAL HEARD IN TEXAS AVIALL WEATHERS SPINOFF HAZARDS HOPES FOR LIFT FROM RESTRUCTURING BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WHILE AVIALL'S PURPOSE IS TO KEEP COMMERCIAL JETS FLYING THE COMPANY HAS YET TO GET ITS STOCK OFF THE TARMAC IN SOME WAYS THAT'S GOOD NEWS AVIALL THE WORLD'S LEADING INDEPENDENT PROVIDER OF TURBINEENGINE OVERHAUL AND PARTS DISTRIBUTION WAS SPUN OUT OF MIAMIBASED RYDER SYSTEM IN DECEMBER AT 15 SINCE THEN THE COMPANY'S STOCK HAS TRADED IN A NARROW 15 TO 18 RANGE LIFE COULD BE WORSE SPINOFFS OF BEHEMOTH STANDARD & POOR'S 500 COMPANIES FREQUENTLY SEE THEIR STOCK SLIDE PRECIPITOUSLY FROM THEIR INITIALOFFERING PRICE BECAUSE THEY DON'T ATTRACT MUCH FOLLOWING FROM ANALYSTS ALSO MONEY MANAGERS OF FUNDS THAT FOCUS ON S&P 500 STOCKS FREQUENTLY DUMP THE NEWLY ACQUIRED SHARES BUT THOSE THINGS HAVEN'T HAPPENED TO AVIALL AND THAT'S AN INDICATION OF WHAT ANALYSTS THINK OF ITS POTENTIAL PAUL SCHLESINGER AN ANALYST AT DONALDSON LUFKIN & JENRETTE NOTES THAT THE COMPANY'S TRADING VOLUME HAS BEEN ONLY ABOUT HALF OF THE 193 MILLION SHARES DISTRIBUTED TO RYDER SHAREHOLDERS MEANING THERE ARE OBVIOUSLY SOME FUND COMPANIES THAT APPARENTLY LIKE THE STOCK AND THAT THERE IS A GREATER WILLINGNESS TO HOLD ONTO IT INDEED THE NAIC GROWTH FUND A MUTUAL FUND RUN BY THE NATIONAL ASSOCIATION OF INVESTORS CORP THE ROYAL OAK MICH UMBRELLA GROUP FOR INVESTMENT CLUBS KEPT THE 1200 SHARES IT GAINED IN THE SPINOFF WE HAVE CONSIDERABLE CONFIDENCE IN THE PEOPLE RUNNING THE COMPANY SAYS THOMAS O'HARA AN ADVISER TO THE FUND DALLASBASED AVIALL ISN'T SET TO SOAR JUST YET ALTHOUGH AT ITS CURRENT PRICE MANY CONSIDER IT UNDERVALUED THE COMPANY IS IN THE MIDST OF A RESTRUCTURING DURING WHICH AVIALL WILL DISPOSE OF ITS BUSINESSAVIATION ENGINEOVERHAUL OPERATIONS TO FOCUS INSTEAD ON SERVICING COMMERCIAL REGIONAL AND COMMUTERAIRLINE ENGINES THE COMPANY'S LARGEST CUSTOMERS INCLUDE SOUTHWEST AIRLINES FEDERAL EXPRESS AND CONTINENTAL AIRLINES BECAUSE OF THE RESTRUCTURING AVIALL'S FOURTHQUARTER EARNINGS REPORT WAS EXTREMELY COMPLICATED INCLUDING CHARGES OF 156700 SEVERAL ADJUSTMENTS FOR BUSINESSES HELD FOR SALE AND OTHER ACCOUNTING MODIFICATIONS IT'S REALLY GOING TO TAKE A YEAR OR SO BEFORE YOU CAN TELL HOW THINGS ARE GOING MR O'HARA SAYS IN THE MEANTIME IT'S APPARENT THAT THE AIRLINE INDUSTRY'S WRETCHED ECONOMIC CONDITIONS HAVE AFFECTED AVIALL'S BUSINESS NOT ONLY ARE THERE PLANES IN SERVICE BUT DEMAND FOR AVIATION PARTS WHICH ACCOUNT FOR 50 OF AVIALL'S BUSINESS HAS BEEN CURBED ALL TOLD THE COMPANY REPORTED PRETAX EARNINGS FROM CONTINUING OPERATIONS OF 6 MILLION FOR 1993 DOWN FROM 75 MILLION THE YEAR BEFORE MOREOVER EXCESS CAPACITY IN THE ENGINEOVERHAUL BUSINESS HAS SPAWNED PRICE COMPETITION AMONG AVIALL AND ITS RIVALS THE PRICING PRESSURE WHICH HAS PINCHED AVIALL'S GROSS PROFIT MARGINS BY ABOUT ONE PERCENTAGE POINT SHOULD LAST THROUGH THE FIRST HALF OF 1994 BUT DESPITE THESE DRAWBACKS SUPPORTERS ARGUE THAT THE RESTRUCTURING WILL SOLIDIFY AVIALL'S LEADING ROLE IN JETENGINE MAINTENANCE WITH AIRLINES SEARCHING FOR WAYS TO REDUCE COSTS OUTSOURCING MAINTENANCE NEEDS HAS BECOME MORE COSTEFFECTIVE THAN OPERATING INHOUSE REPAIR SHOPS BECAUSE AVIALL IS THE LARGEST PLAYER AND BECAUSE OF THE RESTRUCTURING AVIALL IS WELLPOSITIONED IN TERMS OF COST SAYS THOMAS GALVIN AN ANALYST AT CJ LAWRENCE IN NEW YORK ADDITIONALLY CONTRACTPRICE INCREASES FOR OVERHAUL SERVICES WILL TAKE EFFECT IN THE SECOND HALF OF THE YEAR WHICH SHOULD BOLSTER AVIALL'S PROFIT MARGINS CHARLES RONSON A MONEY MANAGER AT BALESTRA CAPITAL IN NEW YORK AND PUBLISHER OF THE SPINOFF REPORT NEWSLETTER CONSIDERS AVIALL SHARES UNDERVALUED AT ITS CURRENT PRICE AVIALL TRADES AT ABOUT 35 TIMES ITS PROJECTED 1994 CASH FLOW EARNINGS BEFORE INCOME TAXES DEPRECIATION AND AMORTIZATION THAT'S LOW IN TERMS OF ANY COMPANY SAYS MR RONSON WHO SNAPPED UP SHARES FOR HIS PERSONAL ACCOUNT WHEN AVIALL WAS AT 16 THE STREET HAS MISTAKENLY PRICED THIS COMPANY AS IF IT WERE SOME DISTRESSED LITTLE SUBSIDIARY UP FOR SALE MR GALVIN NOTING THAT COVERAGE OF THE STOCK HAS FALLEN THROUGH THE CRACKS ON WALL STREET EXPECTS THE PRICE TO MOVE UP TO ABOUT 25 WITHIN THE YEAR AS NEWS OF THE COMPANY SPREADS THE ANALYSTS CONTEND THAT AVIALL'S RESTRUCTURING WILL SIGNIFICANTLY BOOST ITS BOTTOM LINE EVERY ONE PERCENTAGE POINT MANAGEMENT TRIMS FROM OPERATING EXPENSES SHOULD ADD 25 CENTS A SHARE IN EARNINGS THEY SAY ALSO THE COMPANY HAS GROWTH POTENTIAL THAT IS MASKED BY ITS COMPLICATED EARNINGS STATEMENTS AVIALL CURRENTLY IS BOOKING THE INTEREST EXPENSES IT INCURS ON THE BUSINESSES IT'S TRYING TO SELL BUT ISN'T RECOGNIZING THE INCOME FROM THEM THAT HAS THE EFFECT OF MUFFLING ITS TRUE PERFORMANCE ONCE THOSE OPERATIONS ARE SOLD MR RONSON SAYS YOU'LL SEE A SUBSTANTIAL PICKUP IN EARNINGS AND SUBSTANTIAL GROWTH IN THE STOCK PRICE YEAR ENDED DEC 31 1993 FOURTH QUARTER ENDED DEC 31 1993 NOTE PERSHARE FIGURES NOT APPLICABLE WHEN LAST WE LEFT US LONG DISTANCE IN OCTOBER THE SAN ANTONIO TELECOMMUNICATIONS AND INFORMATIONSERVICES COMPANY WAS RIDING HIGH AT 21 A SHARE AT THAT TIME ANALYSTS PROJECTED RAPID GROWTH THANKS TO A WAVE OF PURCHASES BY THE COMPANY AND THE HEATED MERGER MARKET IN THE TELECOMMUNICATIONS INDUSTRY SOMEONE FORGET TO LET US LONG DISTANCE IN ON THE NEWS SINCE THE REPORT THE COMPANY HAS BEEN BUFFETED BY ONE PROBLEM AFTER ANOTHER IN DECEMBER THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED AN INFORMAL INQUIRY INTO THE COMPANY'S ACCOUNTING PRACTICES AFTER WHICH US LONG DISTANCE ABANDONED PLANS FOR A SECONDARY STOCK OFFERING CHARLIE JOHNSON EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER STEPPED DOWN ON FEB 1 TO PURSUE OTHER CAREER OBJECTIVES A WEEK LATER STEPHEN DEATON SENIOR VICE PRESIDENT AND FINANCIAL CHIEF RESIGNED HIS POSTS JUST SEVEN WEEKS AFTER JOINING THE COMPANY TO TOP IT OFF LAST WEEK THE COMPANY ANNOUNCED THAT FOR THE FIRST QUARTER ENDED DEC 31 IT POSTED A LOSS OF 679000 OR FIVE CENTS A SHARE COMPARED WITH A GAIN OF 548000 OR FIVE CENTS A SHARE A YEAR AGO EXCLUDING EXTRAORDINARY ITEMS THE STOCK IS DOWN ABOUT 50 TO 11 BUT ALL IS NOT LOST MOST ANALYSTS WHO PARTICIPATED IN THE COMPANY'S CONFERENCE CALL ON FEB 10 STILL RATE THE STOCK A BUY MICHAEL ELLING AT OPPENHEIMER IN NEW YORK SAYS HE WOULD BE AN AGGRESSIVE BUYER BELOW 10 THEY'LL WORK OUT OF THEIR PROBLEMS AND BE A 16 STOCK BY THE END OF THE YEAR HE SAYS US LONG DISTANCE'S PROBLEMS AGGRESSIVE EXPANSION IN RECENT MONTHS RESULTED IN AN OVERBUILT NETWORK WHICH DIDN'T HAVE THE SUPPORTING REVENUE BECAUSE TWO CONTRACTS TO PROVIDE OPERATOR SERVICES FOR A GROUP OF PAYTELEPHONE OWNERS FAILED TO PRODUCE THE INCOME THE COMPANY HAD ANTICIPATED ALL TOLD MARGINS WERE SQUEEZED BY ABOUT FIVE PERCENTAGE POINTS WHICH TRANSLATES INTO A REVENUE LOSS OF ROUGHLY 2 MILLION ALTHOUGH ANALYSTS EXPECT THE COMPANY WILL POST WEAK SECONDQUARTER RESULTS BECAUSE OF EFFORTS TO SCALE BACK ITS NETWORK THEY SAY US LONG DISTANCE SHOULD HAVE A STRONG SECOND HALF ULTIMATELY POSTING REVENUE FOR THE YEAR OF 180 MILLION UP 34 FROM LAST YEAR THE ANALYSTS ALSO BELIEVE THE COMPANY'S CONTENTION THAT RECENT MANAGEMENT DEPARTURES HAD NOTHING TO DO WITH THE SEC INQUIRY AND MOST ANALYSTS ARE CONVINCED THAT THE SEC INQUIRY WILL BE RESOLVED WITHOUT DAMAGING THE COMPANY STAY TUNED WESTERN NATIONAL THE HOUSTON INSURANCE CONCERN RECENTLY PROFILED IN THIS COLUMN WENT PUBLIC LAST WEEK WITH ITS INITIAL PUBLIC OFFERING PRICED AT 12 A SHARE LESS THAN THE 15 TO 17 ANALYSTS HAD EXPECTED ANALYSTS BLAMED THE PRICE WEAKNESS ON A RECENT SWOON IN THE INTEREST RATESENSITIVE LIFEINSURANCE INDUSTRY THOUGH PRICED AT 12 WESTERN FIRST TRADED AT 12625 AND ROSE CLOSING THE WEEK AT 1350 HOUSTON'S NL INDUSTRIES GAINED 24 TO 9125 LAST WEEK EVEN THOUGH IT REPORTED A WIDER FOURTHQUARTER LOSS FOR THE QUARTER NL REPORTED A LOSS OF 496 MILLION OR 97 CENTS A SHARE INCLUDING A ONETIME CHARGE AND A SMALL GAIN A YEAR EARLIER THE CHEMICAL COMPANY REPORTED A LOSS OF 173 MILLION OR 34 CENTS A SHARE THE STOCK'S STRENGTH APPARENTLY STEMMED FROM A DOW JONES NEWS SERVICE REPORT NOTING THAT SPECIALTYCHEMICAL COMPANIES SUCH AS NL AND HOUSTON'S STERLING CHEMICALS HAVE REAPED THE BENEFITS OF WALL STREET'S ROTATION BACK INTO CYCLICAL CHEMICAL STOCKS STERLING POPPED UP 18 TO 5625 STEWART INFORMATION SERVICES A HOUSTON TITLEINSURANCE HOLDING COMPANY LED ACTIVE STOCKS TRADING NINE TIMES ITS AVERAGE DAILY VOLUME AND GAINING 1125 TO 3050 THE COMPANY REPORTED FOURTHQUARTER PROFIT OF 943 MILLION OR 230 A SHARE COMPARED WITH YEARAGO NET OF 614 MILLION OR 151 A SHARE TECNOL MEDICAL PRODUCTS FORT WORTH FELL MORE THAN 9 TO 1475 AFTER DAVID TICE HEAD OF THE RESEARCH SERVICE BEHIND THE NUMBERS NOTED IN BARRON'S WEEKLY THAT THE MAKER OF DISPOSABLEMEDICAL PRODUCTS IS OVERVALUED AT CURRENT LEVELS 9402160184 940216 TEXAS JOURNAL FINALLY A PLACE THE QUEEN CAN DINE WITH THE FAMILY BY TARA PARKERPOPE TRAFALGAR SQUARE MEET TEXMEX GENE STREET CHIEF EXECUTIVE OF GOOD EATS RESTAURANT GROUP INC OF DALLAS LAST WEEK RECEIVED LONGSOUGHT APPROVAL TO OPEN THE TEXAS EMBASSY CANTINA IN LONDON IN AUGUST MR STREET AND HIS PARTNERS DALLAS LAWYER A HARDCASTLE AND MIDLAND OILMAN RUSSELL RAMSLAND JR HAVE WANTED TO OPEN A MEXICANFOOD RESTAURANT IN LONDON FOR THREE YEARS EVER SINCE THEY VISITED THE CITY AND FOUND THE MEXICAN CUISINE LACKING AT ONE OF THE RESTAURANTS SAYS MR STREET THEIR BURRITOS WERE FLOUR TORTILLAS WITH FRITOS AND CHILI WRAPPED UP AND ROLLED TOGETHER BUT GETTING ALL THE NECESSARY APPROVALS WASN'T EASY PARTICULARLY SINCE SOME LOCALS FEARED A TACKY TEXMEX ON THE EDGE OF TRAFALGAR SQUARE HOME OF THE FAMED NATIONAL GALLERY ART MUSEUM THE SITE A 90YEAROLD BANK BUILDING ISN'T FAR FROM NO 10 DOWNING STREET THE HOUSES OF PARLIAMENT AND BUCKINGHAM PALACE WHEN I SAW IT I SAID GREAT BUILDING BUT THEY'RE NEVER GOING TO LET A TEXMEX RESTAURANT COME IN THIS AREA' MR STREET RECALLS AND IN FACT THERE WAS RESISTANCE OFFICIALS AND NEIGHBORING PROPERTY OWNERS WERE CONCERNED ABOUT POTENTIAL TRAFFIC AND NOISE WHILE REPRESENTATIVES OF THE QUEEN QUESTIONED WHETHER THE COMPANY'S FLAG A NEARREPLICA OF A TEXAS RANGER BADGE MIGHT OFFEND HER MAJESTY IF SHE WAS TAKING A STROLL THEY ARE VERY CONCERNED ABOUT FLYING FLAGS OVER THERE MR RAMSLAND SAYS THE RESTAURANT'S INVESTORS WHO NUMBER ABOUT 20 WILL SHELL OUT ABOUT 2 MILLION TO TURN THE BANK BUILDING INTO A RESTAURANT MR RAMSLAND SAYS THEY EXPECT AT LEAST 6 MILLION IN ANNUAL SALES ALTHOUGH THEY BELIEVE 8 MILLION TO 12 MILLION IS MORE LIKELY I THINK WITH A GOOD PRODUCT WITH LOTS OF MARGARITAS AND A LOT OF MARKETING WE'RE REALLY GOING TO HAVE A BIG DEAL SAYS MR STREET I THINK TEXAS WILL BE PROUD OF IT 9402160183 940216 WHO'S NEWS ZALE CORP ZALE CORP DALLAS JOHN BELKNAP 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS JEWELRY RETAILER SUCCEEDING ANDREAS LUDWIG WHO LEFT IN JANUARY TO TAKE A POSITION IN AUSTRIA 9402160182 940216 KILLING DRUG RESEARCH KILLS PEOPLE DEMOGRAPHY AND TECHNOLOGY TIME BOMB BY THOMAS M LOARIE IN ITS QUEST TO SQUEEZE SAVINGS FROM THE HEALTH CARE SYSTEM THE CLINTON HEALTH CARE PLAN THREATENS TO PUT A CHOKEHOLD ON THE SINGLE GREATEST SOURCE OF EFFICIENCY AND PRODUCTIVITY MEDICAL TECHNOLOGY THIS IS SHORTSIGHTED BECAUSE IN LESS THAN A DECADE THE BABYBOOM GENERATION WILL BEGIN ENTERING THE PEAK YEARS OF HEALTH CARE CONSUMPTION THE NEED FOR EFFICIENT LABORSAVING RESOURCESTRETCHING TOOLS TO HANDLE THE BOOMERS' HEALTH CARE NEEDS WILL BE GREATER THAN EVER BUT PERHAPS THE ADMINISTRATION ALREADY KNOWS THIS AND CHOOSES TO IGNORE IT AS A DEVELOPER OF MEDICAL TECHNOLOGY I KNOW THAT THE CLINTON PLAN'S IMPACT ON TECHNOLOGY INNOVATION WILL NOT BE WIDELY FELT FOR ABOUT 10 YEARS THIS IS ROUGHLY THE TIMELINE FOR A NEW MEDICAL DEVICE TO GO THROUGH DEVELOPMENT TESTING AND EVALUATION BY THE FOOD AND DRUG ADMINISTRATION HEALTH CARE IS THE ONE INDUSTRY WHERE ERRONEOUSLY TECHNOLOGICAL ADVANCES TEND TO BE VIEWED AS BURDENS NOT SOLUTIONS BUT MEDICAL TECHNOLOGY PRICES INCREASED AT AN AVERAGE ANNUAL RATE OF 29 BETWEEN 1985 AND 1992 VS THE 31 RATE IN THE PRIMARY INDEX OF PRODUCER PRICES THROUGHOUT THE US ECONOMY ACCORDING TO THE HEALTH CARE TECHNOLOGY INSTITUTE IN ALEXANDRIA VA THIS IS DESPITE THE RAPID RATE OF MEDICAL TECHNOLOGY INNOVATION DURING THAT PERIOD A PERIOD THAT SAW SEISMIC CHANGES IN THE WAY HEALTH CARE IS DELIVERED DEVELOPMENT OF LESS INVASIVE SURGICAL TECHNOLOGIES FOR INSTANCE HELPED DRIVE THE TREND TOWARD OUTPATIENT SURGERY WHICH NOW CONSTITUTES NEARLY 60 OF ALL HOSPITALBASED PROCEDURES ONE OF THE MOST IMPORTANT OF THESE TECHNOLOGIES LAPAROSCOPY WAS CONSIDERED AN EXOTIC IDEA WHEN INTRODUCED IN THE LATE 1970S FOR A SMALL POPULATION OF INFERTILE COUPLES DESIRING PREGNANCY SINCE THEN SPINOFF TECHNOLOGIES HAVE MADE ITS APPLICATIONS WIDESPREAD THE SAVINGS THAT COME FROM SUCH INNOVATION ARE OFTEN IGNORED PRIOR TO 1989 FOR EXAMPLE IT COST ABOUT 21000 PLUS SIX DAYS IN A HOSPITAL TO HAVE A GALL BLADDER REMOVED BY CONVENTIONAL SURGERY TODAY A LAPAROSCOPIC PROCEDURE PERFORMED IN AN AMBULATORY SURGERY CENTER CAN ACCOMPLISH THE SAME THING FOR ABOUT 6400 LABOR COSTS WHICH ACCOUNT FOR 80 OF HEALTH CARE SPENDING ARE THE TRUE WILD CARD YET THEY ARE NOT ADDRESSED IN THE REFORM PLAN ANOTHER WILD CARD IS OVERUTILIZATION OF TECHNOLOGY THAT OCCURS AT THE DIRECTION OF PHYSICIANS HOSPITALS AND CONSUMERS THEMSELVES HERE THE CLINTON PLAN PROPOSES TO ATTACK THE PROBLEM BY ENSNARING MEDICAL TECHNOLOGY MAKERS IN THE SAME BUREAUCRATIC NET AS TECHNOLOGY USERS THIS IS LIKE COOLING DOWN THE PACE OF TELECOMMUNICATIONS INNOVATION AS A NATIONAL STRATEGY FOR DEALING WITH TEENAGERS' OVERUSE OF THEIR PARENTS' TELEPHONES IF THE HEALTH CARE SYSTEM FAILS TO FULLY EXPLOIT TECHNOLOGY'S LEVERAGING CAPACITY THE NEEDS AND DEMANDS OF AN AGING POPULATION WILL EITHER BUST THE NATION'S TREASURY OR REQUIRE UNNECESSARY IF NOT POLITICALLY UNACCEPTABLE RATIONING SINCE COMING UNDER THE REGULATORY PURVIEW OF THE FDA IN 1976 OUR INDUSTRY HAS UNDERGONE A SERIES OF EVERTIGHTENING R&D CONTROLS AND PRODUCT REQUIREMENTS A THREE TO FIVEYEAR FDA REVIEW PROCESS THAT WAS IN FORCE WHEN MY COMPANY STARTED IN 1986 IS NOW A FIVE TO SEVENYEAR PROCESS WHICH EXTENDS THE FULL R&D CYCLE FOR MANY COMPANIES TO 10 YEARS OR MORE AS A RESULT COSTS ASSOCIATED WITH SURVIVING THE FDA NEW PRODUCT GANTLET HAVE GROWN SUBSTANTIALLY HIGHER WHILE POTENTIAL RETURNS HAVE BEEN FURTHER DEFERRED THE CHILLING EFFECT OF THE ADMINISTRATION'S PLANS FOR HEALTH CARE SPENDING CAPS CAN BE SEEN BY ALMOST EVERY LEADING HEALTH CARE ANALYST ON WALL STREET THEIR NEARLY UNANIMOUS EVALUATION IS THAT MEDICAL TECHNOLOGY COMPANIES ARE AMONG THE BIG LOSERS IN THE CLINTON PLAN UNCERTAINTIES OVER HOW NEW TECHNOLOGIES WILL BE ASSESSED HOW PRICES WILL BE SET AND HOW GLOBAL BUDGETS WILL AFFECT NEW TECHNOLOGIES OVER THE LONG TERM HAVE ADDED MEASURABLY TO THE RISK OF INVESTMENT IT IS FANTASY FOR WASHINGTON TO THINK MEDICAL TECHNOLOGY INVESTORS HAVE UNLIMITED RESERVES OF COURAGE AND PATIENCE A BUREAUCRATIC SCHEME THAT MAKES IRRELEVANT SUCH FOUNDATIONAL CONCEPTS AS MARKET RESEARCH PRICING STRATEGIES AND PRODUCTDEVELOPMENT TIMELINES MAY BE JUST THE THING TO STEER INVESTORS INTO LESS PRECARIOUS PURSUITS ALONG SUCH LINES AS OIL DRILLING OR PERHAPS GOLD PROSPECTING THE PRESIDENT'S PLAN PUTS THE BRAKES ON NEW ADVANCES THAT MIGHT OTHERWISE BE THERE TO SERVE AGING BOOMERS LIKE THE CLINTONS AT A MOMENT WHEN THE HEALTH CARE SYSTEM WILL BE PUT TO ITS STRONGEST TEST YET MR LOARIE IS CHAIRMAN AND CEO OF KERAVISION INC IN SANTA CLARA CALIF SEE RELATED ARTICLES EXPENSIVE DRUGS LOWER HEALTH CARE COSTS CLINTON RATIONS FUTURE CURES AND THE MORAL BATTLE PLAN WSJ FEB 16 1994 9402160181 940216 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 FEDERAL HOME LOAN BANK SYSTEM 3815 MILLION OF NOTES DUE FEB 28 1995 PRICED AT PAR TO YIELD 381 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE FEB 24 1997 PRICED INITIALLY AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE PRICED AT A SPREAD OF 145 BASIS POINTS ABOVE TREASURYS THE COUPON WILL RISE AFTER A YEAR TO 503 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE FEB 28 1995 PRICED AT PAR TO YIELD 381 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 750 MILLION OF NOTES DUE FEB 24 1995 PRICED AT PAR TO YIELD 379 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HILLENBRAND INDUSTRIES INC 100 MILLION OF DEBENTURES DUE FEB 15 2024 PRICED AS 7S AT 98762 TO YIELD 71 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC NEW YORK TELEPHONE CO 150 MILLION OF DEBENTURES DUE FEB 15 2004 PRICED AS 625S AT 9907 TO YIELD 6377 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP NYNEX CORP 450 MILLION OF DEBENTURES DUE FEB 15 2024 PRICED AS 725S AT 98872 TO YIELD 7343 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CALIFORNIA 32 BILLION OF 1994 REVENUEANTICIPATION WARRANTS THE 12 BILLION OF SERIES A WARRANTS DUE DEC 21 375 THE MAJORITY OF THE SERIES A WARRANTS ARE PRICED TO YIELD 295 THE 2 BILLION OF SERIES B WARRANTS ARE DUE JULY 26 AND HAVE A 35 COUPON THE MAJORITY OF THOSE WARRANTS ARE PRICED TO YIELD 275 MOODY'S HAS RATED THE WARRANTS MIG1 S&P HAS RATED THE SECURITIES SP1 AND FITCH INVESTORS SERVICE INC HAS ASSIGNED AN F1PLUS RATING UNDERWRITERS INCLUDE GOLDMAN SACHS & CO BANK OF AMERICA NT & SA BT SECURITIES CORP MERRILL LYNCH & CO SMITH BARNEY SHEARSON INC CITICORP SECURITIES INC AND CS FIRST BOSTON INC CONTRA COSTA COUNTY CALIF 336 MILLION OF 1994 SERIES A TAXABLE PENSIONOBLIGATION BONDS PRICED THIS BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 437 IN 1995 TO 695 IN 2011 MOODY'S HAS RATED THE BONDS SINGLEA1 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING ILLINOIS STUDENT ASSISTANCE COMMISSION 1349 MILLION OF STUDENTLOAN REVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP INCLUDED IN THE ISSUE ARE 399 MILLION SENIOR SERIES EE CURRENTINTEREST BONDS 30 MILLION SUBORDINATE SERIES FF CURRENTINTEREST BONDS AND 65 MILLION OF FLOATINGRATE SECURITIES WITH MATURITIES IN 2005 AND 2006 THE CURRENTINTEREST BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE YIELDS FROM 46 IN 1999 TO 57 IN 2006 THE 399 MILLION BONDS HAVE A TRIPLEA RATING FROM MOODY'S AND THE 30 MILLION BONDS HAVE A SINGLEA RATING FROM MOODY'S THE 65 MILLION OF DERIVATIVES HAVE BEEN RATED TRIPLEA BY MOODY'S FLOATING RATE SECURITIES DUE IN 2005 ARE SUBJECT TO THE TAX OHIO PUBLIC FACILITIES COMMISSION 253 MILLION HIGHEREDUCATION CAPITALFACILITIES REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 32 IN 1995 TO 505 IN 2008 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SUFFOLK COUNTY NEW YORK INDUSTRIAL DEVELOPMENT AGENCY 1868 MILLION OF SERIES 1994 BONDS FOR THE SOUTHWEST SEWER DISTRICT SYSTEM PRICED BY DILLON READ & CO YIELDS FOR REOFFERED BONDS RANGE FROM 355 IN 1996 TO 525 IN 2009 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P VIRGINIA EDUCATION LOAN AUTHORITY 972 MILLION OF STUDENTLOAN PROGRAM REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP INCLUDED IS 113 MILLION OF SENIOR SERIES 1994A REFUNDING BONDS PRICED TO YIELD FROM 355 IN 1996 TO 44 IN 2000 THESE BONDS HAVE A TRIPLEA RATING FROM MOODY'S YIELDS FOR THE 649 MILLION OF SENIOR SERIES 1994B REFUNDING BONDS RANGE FROM 465 IN 2000 TO 555 IN 2010 THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX AND HAVE A TRIPLEA RATING FROM MOODY'S THE 21 MILLION OF SERIES 1994C BONDS 575S PRICED AT PAR YIELDS 575 SEPT 1 2010 THESE BONDS ARE SUBJECT TO THE ALTERNATIVEMINIMUM TAX AND HAVE A SINGLEA RATING FROM MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1701 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 7875 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 199443 IS BACKED BY BOTH THE PRINCIPAL AND INTERESTONLY CLASSES OF STRIPS TRUST 257 WHICH IN TURN IS BACKED BY FANNIE MAE'S 30YEAR 7 MORTGAGE SECURITIES BMW US CAPITAL CORP DELAWARE GERMAN PARENT 300 MILLION OF 6625 EUROBONDS DUE MARCH 15 2004 AT ISSUE PRICE 10145 VIA DRESDNER BANK AG AND GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9945 TO YIELD 665 A SPREAD OF 66 BASIS POINTS ABOVE 10YEAR US TREASURY NOTE GUARANTOR PARENT BAYERISCHE MOTOREN WERKE AG FEES TWO CS FIRST BOSTON INC SWISS PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 15 2004 AT ISSUE AND REOFFER PRICE PAR VIA CS FIRST BOSTON LTD PAYABLE QUARTERLY AT 025 POINT BELOW THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE MINIMUM COUPON 5 FEES 035 DAIHO CONSTRUCTION CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 10 1998 WITH EQUITYPURCHASE WARRANTS CARRYING 0375 COUPON AT PAR VIA DAIWA BANK SCHWEIZ AG NOTES EXERCISABLE FROM MARCH 24 TO FEB 28 1998 TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM 25 TERMS TO BE FIXED MONDAY FEES 1625 FORD CREDIT EUROPE PLC US PARENT 20 BILLION YEN OF 275 EUROBONDS DUE JUNE 19 1997 AT ISSUE AND REOFFER PRICE 10023 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 267 SUPPORT AGREEMENT FROM PARENT FORD MOTOR CO FEES 025 ILE DE FRANCE FRENCH REGION 800 MILLION FRENCH FRANCS OF 5875 EUROBONDS DUE MARCH 22 2002 AT ISSUE PRICE 100865 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9929 TO YIELD 599 A MARGIN OF 25 BASIS POINTS OVER YIELD CURVE OF 2001 AND 2002 FRENCH TREASURY FEES 1875 KEISEI ELECTRIC RAILWAY CO JAPAN 250 MILLION OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 10 1998 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC GUARANTOR INDUSTRIAL BANK OF JAPAN LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT 25 INDICATED PREMIUM FROM MARCH 24 TO MARCH 3 1998 TERMS TO BE FIXED TUESDAY FEES 225 LESS 015 FOR LEAD MANAGER NISHIO RENT ALL CO JAPAN 60 MILLION OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 3 1998 AT ISSUE PRICE PAR VIA NEW JAPAN SECURITIES LTD WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM 25 FROM MARCH 18 TO FEB 20 1998 TERMS FIXED FEB 23 GUARANTOR SUMITOMO BANK LTD FEES 225 LESS 015 FOR LEAD MANAGER SWEDEN SUPRANATIONAL 200 MILLION OF 625 EUROBONDS DUE DEC 8 1999 AT ISSUE AND REOFFER PRICE 994 VIA IBJ INTERNATIONAL LTD AND UBS LTD BONDS YIELD 637 A MARGIN OF 24 BASIS POINTS OVER COMPARABLE UK GILT FEES 025 WESTDEUTSCHE LANDESBANK EUROPA AG GERMAN PARENT 300 MILLION FRENCH FRANCS OF ZEROCOUPON EUROBONDS DUE SEPT 21 1995 AT ISSUE PRICE PAR VIA CREDIT LYONNAIS REDEMPTION FOR EACH OF TWO TRANCHES BASED ON SEPARATE CALCULATIONS BOTH FORMULAS TIED TO PERFORMANCE OF SBF 120 INDEX OF TOP 120 PARISLISTED STOCKS FROM ONE MONTH BEFORE PAYMENT DATE TO ONE MONTH BEFORE MATURITY DATE FEES UNDISCLOSED COLOMBIA 250 MILLION OF YANKEE NOTES DUE FEB 23 2004 PRICED AS 75S AT 99196 TO YIELD 7365 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 148 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO 9402160180 940216 WHO'S NEWS ARVIN INDUSTRIES INC ARVIN INDUSTRIES INC COLUMBUS IND ARTHUR R VELASQUEZ PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AZTECA FOODS INC WAS ELECTED A DIRECTOR OF THIS SUPPLIER OF AUTOMOTIVE PARTS AND RELATED PRODUCTS AND SERVICES INCREASING BOARD MEMBERSHIP TO 15 9402160179 940216 WHO'S NEWS AVON PRODUCTS INC AVON PRODUCTS INC NEW YORK BRENDA BARNES WAS NAMED A DIRECTOR OF THIS DIRECT SELLER AND MARKETER OF BEAUTY AND RELATED PRODUCTS INCREASING BOARD MEMBERSHIP TO 13 MS BARNES 40 YEARS OLD IS CHIEF OPERATING OFFICER OF PEPSICO INC'S PEPSICOLA CO UNIT 9402160178 940216 WHO'S NEWS HEALTH MANAGEMENT ASSOCIATES INC HEALTH MANAGEMENT ASSOCIATES INC NAPLES FLA W EUGENE MAYBERRY 64 YEARS OLD WAS ELECTED TO THE BOARD OF THIS OPERATOR OF ACUTECARE HOSPITALS A FORMER CHIEF EXECUTIVE OFFICER OF THE MAYO CLINIC DR MAYBERRY IS AN ADDITION TO HEALTH MANAGEMENT'S BOARD ITS SIXTH MEMBER 9402160177 940216 WHO'S NEWS PHOENIX RE CORP PHOENIX RE CORP NEW YORK SANFORD M KIMMEL 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER OF THIS REINSURANCE PRODUCTS AND SERVICES PROVIDER MR KIMMEL SUCCEEDS JEFFREY D CROPSEY WHO LEFT THE COMPANY IN NOVEMBER MR KIMMEL WAS PREVIOUSLY VICE PRESIDENT FINANCE AT PAGE AMERICA GROUP INC 9402160176 940216 ITT CRITICIZES SUIT CITING COOPERATION IN DEFENSE PROBE BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEWARK NJ THE JUSTICE DEPARTMENT FILED A CIVIL FRAUD SUIT AGAINST ITT CORP FOR SUBMITTING FALSE CLAIMS ON DEFENSE DEPARTMENT CONTRACTS A MOVE ITT CRITICIZED AS UNJUSTIFIABLE BECAUSE THE COMPANY HAD TURNED ITSELF IN THE SUIT FILED IN FEDERAL DISTRICT COURT IN NEWARK ALLEGED THAT ITT'S AVIONICS DIVISION IN NUTLEY NJ KNOWINGLY CLAIMED 360000 IN LABOR COSTS ON SEVERAL GOVERNMENT CONTRACTS WHEN IN FACT THE LABOR HAD NOT BEEN PERFORMED IN CONNECTION WITH THOSE CONTRACTS THE COMPANY DIDN'T DISPUTE THE IMPROPER BILLING DECLARING THAT IT HAD RECEIVED AN INTERNAL ALLEGATION IN APRIL 1990 AND CONFIRMED THE VIOLATIONS IN A COMPANY INVESTIGATION THEN UNDER AN AGREEMENT WITH THE DEFENSE DEPARTMENT THAT MANY DEFENSE CONTRACTORS HAVE SIGNED ITT REPORTED THE FINDINGS IN MAY 1990 AND COOPERATED WITH THE GOVERNMENT PROBE BY INITIATING LEGAL ACTION AGAINST ITT THE GOVERNMENT FAILS TO LIVE UP TO THE SPIRIT OF THE DISCLOSURE PROGRAM AND THE EXPECTATIONS OF ITT THE COMPANY SAID IN A STATEMENT THE ACTIONS ARE UNJUSTIFIABLE AND PERPLEXING ITT SPOKESMAN JAMES GALLAGHER SAID THAT ON TWO OTHER OCCASIONS ITT HAD DISCOVERED VIOLATIONS REPORTED THEM TO THE GOVERNMENT AND RESOLVED THE DISPUTES AMICABLY IN THE LATEST CASE WHICH HE SAID WAS FILED ON THE LAST DAY POSSIBLE UNDER LEGAL TIMETABLES WE SAID WE MADE A MISTAKE AND WE'D PAY WHAT WE OWE WE THOUGHT THEY WERE HAPPY HE SAID THERE APPEARS TO BE GREAT AMBIGUITY AS TO WHETHER THE GOVERNMENT WILL TAKE LEGAL ACTION IN SUCH SITUATIONS IF THE PROGRAM IS GOING TO WORK HE SAID DEFENSE CONTRACTORS NEED TO KNOW WHAT TO EXPECT WHEN THEY IDENTIFY PROBLEMS THE SUIT SEEKS TRIPLE DAMAGES AND CIVIL PENALTIES UNDER THE FALSE CLAIMS ACT AS WELL AS COMMONLAW REMEDIES CIVIL PENALTIES CAN RANGE FROM 5000 TO 10000 FOR EACH FALSE CLAIM ITT'S BUSINESSES INCLUDE AUTOMOTIVE PRODUCTS FLUID TECHNOLOGY DEFENSE FOREST PRODUCTS HOTELS AND FINANCIAL SERVICES 9402160175 940216 INTERNATIONAL ASTRA STEROID IS CLEARED STOCKHOLM SWEDISH PHARMACEUTICAL GROUP ASTRA AB SAID IT WON APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION FOR RHINOCORT AN INHALATION STEROID USED IN THE TREATMENT OF HAY FEVER AND OTHER DISORDERS RHINOCORT WILL BE LAUNCHED IN THE US IN MID1994 BY ASTRA SUBSIDIARY ASTRA USA INC THE COMPANY SAID 9402160174 940216 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND WILLIAM E MACDONALD III 47 YEARS OLD EXECUTIVE VICE PRESIDENT OF THIS BANK AND FINANCIALSERVICES HOLDING COMPANY AND PRESIDENT OF ITS NATIONAL CITY BANK CLEVELAND UNIT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THE UNIT WHICH IS THE COMPANY'S LEAD BANK HE SUCCEEDS DAVID A DABERKO 48 WHO CONTINUES AS CHAIRMAN OF THE UNIT MR DABERKO ALSO IS PRESIDENT AND CHIEF OPERATING OFFICER OF THE HOLDING COMPANY 9402160173 940216 BUSINESS BRIEFS AMERICAN INTERNATIONAL GROUP INC RECEIVED A LICENSE TO OPERATE AN INSURANCE COMPANY IN ROMANIA TRANS FINANCIAL BANCORP INC COMPLETED ITS ACQUISITION OF KENTUCKY COMMUNITY BANCORP INC TRANS FINANCIAL WILL ISSUE 1375000 SHARES IN THE TRANSACTION WHICH HAD AN ESTIMATED VALUE OF 217 MILLION PAXAR CORP WILL OPEN A SUBSIDIARY PAXAR LATIN AMERICA IN MEXICO CITY AND A BRANCH KNOWN AS PAXAR CANADA IN MONTREAL ARBY'S INC A UNIT OF TRIARC COS NEW YORK WILL BUY 33 OF ITS FRANCHISE RESTAURANTS IN JACKSONVILLE FLA AND ORLANDO FLA TERMS WEREN'T DISCLOSED DATA BROADCASTING CORP HAS AGREED TO BUY CLOSELY HELD DATASPORT INC SAN MATEO CALIF TERMS WEREN'T DISCLOSED CHIPCOM CORP COMPLETED ITS ACQUISITION OF ARTEL COMMUNICATIONS CORP FOR 754000 COMMON SHARES IT RESERVED ANOTHER 56500 SHARES FOR PAYMENTS TO ARTEL OPTION AND WARRANT HOLDERS CRAY RESEARCH INC RECEIVED AN ORDER FOR A FULLY LOADED C916 SUPERCOMPUTER FROM THE UK METEOROLOGICAL OFFICE TERMS WEREN'T DISCLOSED 9402160172 940216 WESTERN CO SENIOR NOTES HOUSTON WESTERN CO OF NORTH AMERICA SAID IT INCREASED THE PRICE IT WILL PAY FOR ITS 12 7/8 SENIOR NOTES DUE 2002 TO 1200 FROM 1190 FOR EACH 1000 OF PRINCIPAL OUTSTANDING THE OIL FIELD SERVICES COMPANY ALSO SAID THE AMENDED OFFER WILL EXPIRE MARCH 1 WESTERN SAID 28245000 OF THE 100 MILLION PRINCIPAL AMOUNT OUTSTANDING HAD BEEN TENDERED THUS FAR JP MORGAN SECURITIES INC IS MANAGING THE OFFER 9402160171 940216 WHO'S NEWS CONTINENTAL MORTGAGE & EQUITY TRUST INCOME OPPORTUNITY REALTY TRUST AND TRANSCONTINENTAL REALTY INVESTORS INC TRUST AND TRANSCONTINENTAL REALTY INVESTORS INC DALLAS OSCAR CASHWELL 63 YEARS OLD WAS NAMED PRESIDENT OF ALL THREE COMPANIES HE SUCCEEDS WILLIAM S FRIEDMAN 50 WHO RESIGNED TO FOCUS HIS ATTENTION ON NATIONAL INCOME REALTY TRUST AND VINLAND PROPERTY TRUST WHERE HE REMAINS PRESIDENT MR CASHWELL REMAINS PRESIDENT OF BASIC CAPITAL MANAGEMENT INC THE ADVISER TO THE THREE REAL ESTATE INVESTMENT TRUSTS 9402160170 940216 WHO'S NEWS VALUE HEALTH INC VALUE HEALTH INC AVON CONN DAVID M WURZER 35 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF SPECIALTY MANAGEDCARE BENEFIT PROGRAMS AND HEALTHCARE INFORMATION SERVICES MR WURZER SUCCEEDS WILLIAM J MCBRIDE 48 WHO WAS RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY MR WURZER PREVIOUSLY SERVED AS VICE PRESIDENT OF FINANCE AND INVESTOR RELATIONS OF VALUE HEALTH 9402160169 940216 US OFFENSIVE TARGETS JAPAN'S PHONE MARKET TRADE SANCTIONS THREATENED TO HIGHLIGHT BARRIERS FOR MOTOROLA'S PRODUCTS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US OPENED ITS TRADE OFFENSIVE AGAINST JAPAN THREATENING TO LEVY SANCTIONS ON SEVERAL HUNDRED MILLION DOLLARS OF JAPANESE IMPORTS BECAUSE OF A DISPUTE OVER CELLULAR TELEPHONES THE ACTION WAS FAR RICHER IN SYMBOLISM THAN TRADE EFFECTS THE US HAS MADE THE DISPUTE INVOLVING MOTOROLA INC INTO A METAPHOR FOR THE JAPANESE GOVERNMENT'S ALLEGED DISCRIMINATION AGAINST FOREIGN COMPANIES BY SCHEDULING A DECISION ON THE CASE SO SOON AFTER A TRADE SUMMIT THAT ENDED IN FAILURE AND RECRIMINATION THE US GUARANTEED MAXIMUM COVERAGE OF ITS COMPLAINTS TWO DOZEN TELEVISION CAMERAS RECORDED YESTERDAY'S ANNOUNCEMENT WHICH WAS ATTENDED BY MORE THAN 100 REPORTERS WE COULDN'T HAVE HAD A BETTER TURNOUT UNLESS WE HAD TONYA HARDING HERE QUIPPED THOMAS NIDES A US TRADE OFFICIAL US TRADE REPRESENTATIVE MICKEY KANTOR USED THE OPPORTUNITY TO BERATE TOKYO OVER ITS FAILURE TO OPEN THE CELLULARTELEPHONE MARKET THIS IS A CLEARCUT AND SERIOUS CASE OF JAPAN NOT LIVING UP TO ITS AGREEMENTS MR KANTOR SAID SURROUNDED BY ROSS PEROTSTYLE CHARTS EACH TRADE BARRIER HAS BEEN REMOVED ONLY TO BE REPLACED BY ANOTHER BUT MR KANTOR'S REMARKS ALSO GAVE A HINT OF HOW THE CELLULARTELEPHONE DISPUTE AS WELL AS THE BROADER TRADE FIGHT WITH JAPAN COULD EVENTUALLY BE SETTLED TOKYO WOULDN'T COMPROMISE ON US DEMANDS THAT IT SET SALES GOALS FOR CERTAIN MARKETS IN THE RECENT FRAMEWORK TRADE TALKS JAPANESE NEGOTIATORS REJECTED THE USE OF MOST NUMBERS BECAUSE OF FEARS THAT IT WOULD LOCK THEM INTO SALES COMMITMENTS WITH THE CELLULARTELEPHONE DISPUTE MR KANTOR LISTED A FEW POSSIBLE CRITERIA THAT WOULD HAVE MADE PAST AGREEMENTS IN THIS AREA EFFECTIVE THE CRITERIA INCLUDED THE DATE BY WHICH THE MOTOROLA CELLULAR SYSTEM WOULD HAVE TO BE BUILT AND THE GEOGRAPHIC AREA COVERED NO GUARANTEED MARKET SHARE NO GUARANTEED SUBSCRIBERS NO MARKET NUMBERS HE SAID SOME US OFFICIALS HAVE INDICATED THAT IF JAPAN WOULD AGREE TO WAYS OF TRACKING SUCH PROMISES AS CHANGES IN BUSINESS AND GOVERNMENT PRACTICES THE US MIGHT NOT INSIST ON SPECIFIC SALES GOALS SO FAR THOUGH TOKYO HAS STEERED CLEAR OF ANY NUMERICAL INDICATORS THAT WOULD REQUIRE IT TO TAKE ACTIONS IN THE FUTURE US NEGOTIATORS SAID ALTHOUGH THE DISPUTE INVOLVES CELLULAR PHONES THE US PROBABLY WON'T BE ABLE TO RETALIATE AGAINST JAPANESE PRODUCERS OF THE GOODS THAT'S BECAUSE TWO OF JAPAN'S LARGEST SUPPLIERS OF CELLULAR PHONES AND NETWORK SWITCHES FUJITSU LTD AND NEC CORP ALREADY MAKE IN THE US MUCH OF WHAT THEY SELL IN THE US OUR CELLULAR TELEPHONES ARE ALREADY MANUFACTURED 100 IN THE US AND WE BUY THE SUBSYSTEMS FROM US MANUFACTURERS A FUJITSU SPOKESMAN SAID ADDING THE TELEPHONES ARE EVEN EXPORTED FROM THERE TO SINGAPORE AND AUSTRALIA NEC SAID HALF OF THE 500000 PHONES IT SOLD LAST YEAR IN THE US WERE MANUFACTURED IN MEXICO AND THE US WHILE THE OTHER HALF WERE EXPORTED FROM JAPAN WHEN A SIMILAR ISSUE AROSE OVER JAPAN'S CELLULARTELEPHONE MARKET IN 1989 THE US THREATENED TO IMPOSE IMPORT TARIFFS ON A RANGE OF JAPANESE PRODUCTS SUCH AS TELEVISION SETS AND PHOTOCOPIERS WHICH WEREN'T DIRECTLY CONNECTED TO THE TRADE ISSUE THE CELLULAR DISPUTE INVOLVES A DENSELY POPULATED AREA SOUTH OF TOKYO WHERE JAPAN'S MINISTRY OF POST AND TELECOMMUNICATIONS PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAIN JAPANESE RIVAL NIPPON TELEGRAPH & TELEPHONE CORP MR KANTOR CALLED THAT A SHOTGUN MARRIAGE WHICH WORKED OUT ABOUT AS BADLY AS MOST SUCH UNIONS IN THE TOKYONAGOYA CORRIDOR MOTOROLA HAS SIGNED UP 12900 SUBSCRIBERS THROUGH ITS PARTNER WHICH HAS GARNERED 308000 FOR THE NTT TECHNOLOGY ELSEWHERE IN JAPAN THE US ESTIMATES THE MOTOROLA AND NTT TECHNOLOGY SPLIT THE MARKET ROUGHLY IN HALF CLEARLY THE MARKET IS THERE CERTAINLY THE OPPORTUNITY IS THERE CHRISTOPHER GALVIN MOTOROLA'S PRESIDENT SAID AT A NEWS CONFERENCE IN WASHINGTON YESTERDAY WHAT IS LACKING IS THE ACCESS AS A RESULT THE US YESTERDAY DECLARED THAT TOKYO HAD VIOLATED A 1989 CELLULARTELEPHONE AGREEMENT PROMISING MOTOROLA COMPARABLE ACCESS TO THE JAPANESE CELLULARTELEPHONE MARKET THE FINDING IS THE FIRST STEP IN LEVYING SANCTIONS WHICH ARE SUPPOSED TO EQUAL THE DAMAGE SUFFERED BY MOTOROLA IN LOST REVENUE MOTOROLA ESTIMATED ITS LOSS AT BETWEEN 250 MILLION AND 300 MILLION ALTHOUGH THAT'S SMALL CHANGE IN COMPARISON TO USJAPAN TRADE OF ABOUT 145 BILLION LAST YEAR THE DISPUTE TAKES ON GREATER SIGNIFICANCE COMING JUST AFTER THE COLLAPSE OF THE TRADE TALKS IN 30 DAYS THE US WILL DRAW UP A PRELIMINARY LIST OF SANCTION TARGETS THAT WILL BE FOLLOWED BY A PUBLIC HEARING AND THE PUBLICATION OF A FINAL LIST ALL THAT USUALLY TAKES AT LEAST THREE MONTHS DURING WHICH TIME THE US AND JAPAN WILL TRY TO NEGOTIATE A DEAL MOTOROLA'S MR GALVIN SAID THAT THE COMPANY WANTED ASSURANCES THAT ITS SYSTEM WOULD BE EXPANDED TO COVER ABOUT 95 OF THE TOKYONAGOYA AREA WITHIN 18 MONTHS HE INDICATED THAT MOTOROLA HAD BEEN OFFERED A THREEYEAR PERIOD HE ALSO SAID THE TELECOMMUNICATIONS MINISTRY SHOULD END THE NATURAL CONFLICT OF INTEREST CONCERNING MOTOROLA'S JAPANESE PARTNER IDO CORP BUT HE DIDN'T DEMAND THAT MOTOROLA BE PAIRED WITH A DIFFERENT COMPANY KIYO NANAO ECONOMIC MINISTER AT THE JAPANESE EMBASSY IN WASHINGTON SAID THAT TOKYO HAS BEEN HONORING WITH GOOD FAITH THE CELLULARTELEPHONE AGREEMENT CONDUCTING DIALOGUE UNDER THE THREAT OF UNILATERAL ACTIONS WON'T LEAD TO A CONSTRUCTIVE OUTCOME HE ADDED BUT HE DIDN'T SAY WHETHER JAPAN WOULD RETALIATE OR APPEAL ANY US SANCTIONS TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE TRADE REFEREE IN GENEVA THE US PLANS TO TURN UP THE HEAT ON JAPAN ANOTHER FEW DEGREES THE ADMINISTRATION INTENDS TO ANNOUNCE SOON THAT IT WILL RENEW A TOUGH TRADE PROVISION KNOWN AS SUPER 301 THAT SINGLES OUT COUNTRIES FOR RETALIATION AND IS AIMED AT TOKYO DAVID P HAMILTON IN TOKYO CONTRIBUTED TO THIS ARTICLE 9402160168 940216 WHO'S NEWS TRIBUNE CO TRIBUNE CO CHICAGO WILLIAM B NELSON VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CHICAGO TRIBUNE CO WAS NAMED VICE PRESIDENT OF FINANCIAL OPERATIONS OF THIS INFORMATION AND ENTERTAINMENT CONCERN SOME OF MR NELSON'S PREVIOUS DUTIES WILL BE CONSOLIDATED UNDER HIS NEW POSITION HE WILL REPORT TO DONALD C GRENESKO TRIBUNE CO'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9402160167 940216 MARKETING & MEDIA SEARS TO ACCELERATE STORE REMODELINGS SALES GAINS SEEN BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEARS ROEBUCK & CO FORECASTING THAT SALES AT ITS STORES OPEN AT LEAST A YEAR WILL INCREASE 4 TO 5 IN 1994 SAID IT WILL ACCELERATE THE PACE OF ITS STORE REMODELING PROGRAM WE ARE IN GOOD SHAPE SEARS CHAIRMAN EDWARD A BRENNAN TOLD RETAIL ANALYSTS IN NEW YORK SEARS WHICH BOUNCED BACK FROM A RECORD LOSS IN 1992 TO A RECORD PROFIT LAST YEAR DEVOTED MUCH OF THE MEETING WITH ANALYSTS TO REFUTING CONCERNS THAT THE SEARS RESURGENCE MAY BE RUNNING OUT OF STEAM SUCH CONCERNS PRECIPITATED A ONEDAY 6 SLIDE IN THE PRICE OF SEARS COMMON SHARES LAST TUESDAY WHEN THE BIG RETAIL AND INSURANCE CONCERN REPORTED FOURTHQUARTER EARNINGS THAT WERE BELOW ANALYSTS' EXPECTATIONS WE'RE AHEAD OF THE CURVE IN DELIVERING SHAREHOLDER VALUE MR BRENNAN SAID HE NOTED THAT SEARS DELIVERED A 19 RETURN ON EQUITY TO ITS INVESTORS IN 1993 THE FIRST TIME IN RECENT YEARS THAT SEARS SURPASSED ITS TARGET OF A 15 ANNUAL RETURN ON EQUITY THAT WAS ACHIEVED IN LARGE MEASURE BECAUSE THE COMPANY WAS ABLE TO DO IN ONE YEAR WHAT IT HAD PLANNED TO DO IN THREE YEARS CHOP 328 MILLION OUT OF ITS ANNUAL COSTS ON AN AFTERTAX BASIS THIS YEAR THOUGH THE PERFORMANCE TARGETS OF THE NATION'S NO 3 RETAILER ARE MORE MODEST THE SALES INCREASE SEARS IS PROJECTING IS ONLY ABOUT HALF THE 91 THE COMPANY ACHIEVED LAST YEAR SEARS ALSO SAID IT WILL SPEND MORE THIS YEAR ON STORE RENOVATION IN AN EFFORT TO CONTINUE TAKING MARKET SHARE FROM ITS COMPETITORS SEARS WILL RENOVATE 170 OF ITS 800 STORES THIS YEAR 39 MORE THAN THE 122 STORES IT REFURBISHED IN 1993 THIS YEAR'S PLANNED RENOVATIONS WHICH CALL FOR SEARS TO CONVERT STOCKROOM SQUARE FOOTAGE INTO SELLING SPACE WILL ADD ABOUT FOUR MILLION SQUARE FEET OF RETAIL SPACE SEARS SAID MAINTAINING USAGE OF THE SEARSCHARGE CARD BY CUSTOMERS WHO SINCE MID1993 HAVE BEEN ABLE TO SETTLE THEIR PURCHASES WITH MAJOR CREDIT CARDS WILL BE A BIG CHALLENGE FOR THE RETAILER THIS YEAR SEARS OFFICIALS SAID AT YEAR END SEARS HAD MANAGED TO SLIGHTLY BOOST THE LEVEL OF SALES SETTLED WITH THE SEARSCHARGE TO 57 OF TOTAL VOLUME FROM 54 A YEAR EARLIER SEARS OFFICIALS SAID THEIR GOAL IS TO MAINTAIN ACTIVITY OF THE HIGHLY PROFITABLE CHARGECARD OPERATION AT THE CURRENT LEVEL ALLSTATE CORP CHAIRMAN WAYNE E HEDIEN WHO ALSO SPOKE AT THE MEETING SAID THE SEARS INSURANCE UNIT HAS A FAVORABLE LONGTERM BUSINESS OUTLOOK HIGHER AVERAGE POPULATION AGE IMPROVED SAFETY DEVICES SUCH AS ANTILOCK BRAKES AND AUTO AIRBAGS AND OVERALL MODERATE ECONOMIC GROWTH SHOULD HELP ALLSTATE REPORT STRONG EARNINGS THIS YEAR MR HEDIEN SAID 9402160166 940216 CORPORATE FOCUS HEILEMAN WILL RETURN TO OLD RECIPE UNDER HICKS MUSE BREWER TO USE WORD OF MOUTH POINTOFSALE MARKETING TO PUSH LITTLE BEERS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE NATION'S BIGGEST BREWERS SAY THE BEER BUSINESS IS THE TOUGHEST IT HAS BEEN SINCE PROHIBITION FOR THE NEW OWNERS AND MANAGERS OF G HEILEMAN BREWING CO THAT'S GOOD NEWS WE SEE THE WHOLE PREMIUMBEER CATEGORY DECAYING WILLIAM TURNER NEW CHAIRMAN OF THE NATION'S FIFTHLARGEST BREWER SAYS ALMOST GLEEFULLY WE THINK IT'S THE RIGHT TIME TO BE IN THE BEER BUSINESS THAT'S BECAUSE MR TURNER AND HICKS MUSE & CO WHICH RECENTLY BOUGHT HEILEMAN FOR 390 MILLION EXPECT HEILEMAN TO PLAY A SIGNIFICANTLY DIFFERENT GAME THAN THE NATION'S BIGGEST THREE BREWERS DO INSTEAD OF HITCHING THEIR WAGON TO PREMIUM LABELS WITH WIDE APPEAL TO A NATION OF CUSTOMERS LIKE BUDWEISER COORS LIGHT AND MILLER LITE HEILEMAN'S NEW OWNERS PLAN TO CAPITALIZE ON HEILEMAN'S LONGTIME STRENGTH LITTLE BEERS YOU DON'T TRY TO COMPETE WITH THE BIG BREWERS SAYS TOM HICKS CHAIRMAN AT HICKS MUSE YOU TRY TO EMPHASIZE YOUR OWN STRATEGY WE'RE APPEALING TO A SMALLER MARKET THAN THEY ARE INTERESTED IN THIS ISN'T AN UNUSUAL STRATEGY FOR HICKS MUSE A DALLASBASED INVESTMENT FIRM THAT SEEKS OUT NICHE PLAYERS IN CONSOLIDATING INDUSTRIES SOME HICKS MUSE PARTNERS WERE INVOLVED IN EARLIER LEVERAGED BUYOUTS OF DR PEPPER SEVENUP AND A&W BRANDS THERE'S NO REASON WHY SEVERAL OF THE SECONDTIER BREWERS CANNOT BE SUCCESSFUL IN BETWEEN AB ANHEUSERBUSCH COS AND MILLER MILLER BREWING CO JUST AS DR PEPPER AND A&W WERE SUCCESSFUL IN BETWEEN COCACOLA AND PEPSI SAYS CHARLES TATE MANAGING DIRECTOR OF HICKS MUSE ACTUALLY HEILEMAN WAS RELATIVELY SUCCESSFUL THROUGH THE 1970S AND EARLY 1980S DOING PRECISELY THAT THE COMPANY ACQUIRED DOZENS OF ENDANGERED SMALL BRANDS PAYING CASH AND THUS REMAINING DEBTFREE FOR TWO DECADES REVENUE INCREASED TENFOLD TO 13 BILLION IN 1986 FROM 1075 MILLION IN 1970 BY THEN THE BREWER WAS STILL PRODUCING 40 OF THE ACQUIRED BRANDS AND WAS AMONG THE FIRST TO INTRODUCE FANCY BOTTLED WATER AND NONALCOHOLIC BREWS HEILEMAN ALSO BUILT A REPUTATION AS A TOUGH STREETFIGHTER A BEERMARKETING TERM REFERRING TO THE USE OF WORD OF MOUTH AND POINTOFSALE MERCHANDISING TO PUSH PRODUCTS NEVERTHELESS AS THE BREWERY GIANTS STARTED INTRODUCING NEW LOWPRICED BRANDS BACKED BY EXPENSIVE ADVERTISING CAMPAIGNS HEILEMAN'S SALES STARTED TO SLIP AND MESMERIZED BY A BARRAGE OF TV COMMERCIALS US DRINKERS WERE BUYING MORE BUDWEISERS AND MILLER LITES AND FEWER REGIONAL BREWS EACH YEAR BUT HEILEMAN'S PROBLEMS ACCELERATED WHEN IT WAS ACQUIRED BY AUSTRALIAN FINANCIER ALAN BOND IN 1986 THE COMPANY STRUGGLED UNDER THE DEBT OF THE 13 BILLION BUYOUT AND ERRED STRATEGICALLY BY TRYING TO GO HEAD TO HEAD WITH THE BIG BOYS ROLLING OUT SOME BRANDS NATIONALLY IT SIMPLY COULDN'T COMPETE WITH THE AD BUDGETS OF THE BIG BREWERS AND SALES SLIPPED MORE FURTHER THE AUSTRALIAN LEADERSHIP DIDN'T UNDERSTAND THE US BREWING BUSINESS VERY WELL ESPECIALLY THE RELATIONSHIP BETWEEN THE BREWER AND WHOLESALER SAYS BENJ STEINMAN ASSOCIATE PUBLISHER OF BEER MARKETER'S INSIGHTS AN INDUSTRY PUBLICATION THE US THREETIER SYSTEM WHICH MANDATES SEPARATE MANAGEMENT OF BREWER WHOLESALER AND RETAILER MEANS BREWERS MUST WORK WITH WHOLESALERS RATHER THAN ISSUING ORDERS FRUSTRATED WHOLESALERS JUMPED SHIP OR STOPPED DEVOTING TIME TO THE BREWER'S BRANDS BY 1990 HEILEMAN'S VOLUME HAD SLIPPED 23 TO 12250000 BARRELS FROM 15925000 BARRELS IN 1986 PROFIT WAS EATEN UP BY INTEREST COSTS IN 1991 THE COMPANY FILED FOR BANKRUPTCYCOURT PROTECTION AFTER EMERGING FROM BANKRUPTCY THE COMPANY ENDURED ANOTHER TWO YEARS OF SEVERE BELTTIGHTENING DEMANDED BY ITS BANKS BUT NOW UNDER NEW MANAGEMENT HEILEMAN WILL RETURN TO ITS OLD WAYS SAY MR TURNER AND HEILEMAN'S NEW PRESIDENT RICHARD F GACCIONNE REGIONAL BRANDS WILL ZERO IN WHERE THEY DO BEST AND THE COMPANY WILL FOCUS ON ITS STRENGTHS IN MALT LIQUOR AND SMALLBRAND MANAGEMENT PERHAPS MORE IMPORTANTLY IT WILL RETURN TO A HEAVY RELIANCE ON STREETFIGHTING PROMOTIONS IN PLACE OF THE EXPENSIVE NATIONAL MARKETING CAMPAIGNS AND IT WILL TRY TO MEND THE BADLY DAMAGED RELATIONSHIP BETWEEN THE BREWER AND THE DISTRIBUTORS IT DEPENDS ON TIMING MAY BE WORKING IN HEILEMAN'S FAVOR IN THE 1990S SPECIALTY BEERS SUCH AS THOSE MADE BY MICROBREWERIES AND REGIONAL BREWERS ARE COMMANDING HIGHER PRICES AND THE FICKLE CONSUMER'S GREATEST LOYALTY HEILEMAN HAS A NUMBER OF THOSE BRANDS INCLUDING SPECIAL EXPORT WHICH IT HOPES TO MARKET TO YOUNGER DRINKERS AND HEILEMAN HAS EXPERIENCE MANAGING A NUMBER OF TINY BRANDS PROFITABLYSOMETHING THE BIG BREWERS HAVEN'T DONE MR GACCIONNE PLANS TO CAPITALIZE ON THE COMPANY'S STRONG POSITION IN THE FASTGROWING MALT LIQUOR MARKET IT'S A MARKET WHERE THE BIG BREWERS' TV ADS DO LITTLE GOOD THE MARKET RESPONDS MORE TO HEILEMAN'S TRADITIONAL POINTOFSALE MERCHANDISING IN A PRODUCT NICHE THAT HAS AVERAGED 32 ANNUAL GROWTH FOR THE PAST 12 YEARS WHILE THE OVERALL BEER MARKET HAS STAGNATED HEILEMAN'S COLT 45 AND MICKEY'S MALT LIQUORS SAW VOLUME INCREASE 11 AND 50 RESPECTIVELY LAST YEAR MEANWHILE MR GACCIONNE SAYS HEILEMAN HAS A BEVY OF VERY SMALL ECONOMYPRICED BRANDS THAT IT CAN SELL TO SUPERMARKET AND LIQUOR CHAINS AS PRIVATE LABELS ALREADY LUCKY'S IN CALIFORNIA HAS TAKEN ON BLATZ AND VON'S HAS ADOPTED MILWAUKEE 1851 WITH NO MARKETING EXPENSE MR GACCIONNE BELIEVES PRIVATE LABELS CAN BE A PROFITABLE MARKET FOR THE BREWER HE ALSO PLANS TO EXPAND THE COMPANY'S CONTRACT BREWING BUSINESS IN WHICH IT BREWS BEER SUCH AS SAM ADAMS FOR COMPANIES LIKE BOSTON BEER CO WHICH HAS BEEN GROWING AND CONTRIBUTING TO HEILEMAN'S 70 MILLION IN ANNUAL CASH FLOW HE SAYS STILL THE COMPANY CAN'T COMPLETELY ESCAPE THE REALITIES OF THE MURDEROUSLY TOUGH BEER MARKET SMALLER BRANDS AREN'T AS EFFICIENT TO PRODUCE AS MULTIMILLION BARREL BEERS LIKE BUD COORS AND MILLER SOME OF HEILEMAN'S CORE BRANDS HAVE BEEN SLIPPING ESPECIALLY OLD STYLE AND RAINIER AND IT'S DIFFICULT TO REVIVE DECLINING BRANDS AND ALLIANCES BETWEEN BIG BREWERS AND REGIONAL BREWERS EXPECTED TO INCREASE IN COMING YEARS ARE EXPECTED TO CROWD THE SPECIALTY MARKET WITH SOME VERY WELLHEELED PLAYERS IN ADDITION TO RETURN TO ITS ONCESUCCESSFUL STREETFIGHTING DAYS HEILEMAN NEEDS THE COMMITMENT AND MANPOWER OF ITS DISTRIBUTORS WHEN HE WAS PRESIDENT OF HEILEMAN BEFORE THE BOND BUYOUT RUSSELL G CLEARY SPENT ABOUT HALF HIS TIME TALKING WITH AND VISITING DISTRIBUTORS THAT PARTNERSHIP WAS OUR STRENGTH HE SAYS BUT WHEN MR GACCIONNE AND MR TURNER MET WITH DISTRIBUTORS IN 10 CITIES RECENTLY THEY DISCOVERED NO ONE FROM THE BREWERY HAD VISITED THE WHOLESALERS FOR THREE YEARS WE HAVE TO REVERSE THINGS MR GACCIONNE SAID WE NEED MORE OPEN COMMUNICATION RATHER THAN PUSHING THINGS DOWN THEIR THROATS WE NEED TO WORK WITH THEM 9402160165 940216 WHO'S NEWS EVERGREEN INFORMATION TECHNOLOGIES INC EVERGREEN INFORMATION TECHNOLOGIES INC MCLEAN VA JAMES M MCCORMACK 53 YEARS OLD WAS NAMED A DIRECTOR OF THIS ELECTRONIC DATABASE PUBLISHER FILLING A VACANCY ON THE FIVEMEMBER BOARD MR MCCORMACK IS DEPUTY MANAGER OF THE RESEARCH AND DEVELOPMENT OPERATION AT LOGICON INC'S RDA UNIT 9402160164 940216 INTERNATIONAL CHINA'S MUCHNEEDED EFFORT TO IMPROVE PRODUCTIVITY WILL TAKE ECONOMIC TOLL BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL CHINA'S SPURTING GROWTH HAS VAULTED THE ASIAN GIANT NEAR THE TOP OF THE WORLD TRADE CHARTS BUT A KEY GLOBAL MEASURE OF COMPETITIVENESS PRODUCTIVITY LAGS FAR BEHIND ECONOMISTS SAY AND THE PRICE OF BEIJING'S LONG INATTENTION TO WORKER OUTPUT WILL BE A CHOPPY ECONOMIC SLOWDOWN MAYBE LATER THIS YEAR AS FACTORIES COME UNDER PRESSURE TO START LONGOVERDUE RESTRUCTURINGS IN THE LONG RUN THE REVAMP WILL PRODUCE HIGHER WORKER OUTPUT BUT THE IMMEDIATE EFFECT WILL BE MILLIONS OF LAIDOFF WORKERS AND HIGHER SOCIALWELFARE COSTS CHINA'S ECONOMY HAS ALWAYS GROWN BY INCREASING THE NUMBER OF PEOPLE WORKING AND INCREASING THE CAPITAL USED SAYS BENNY CHIU AN ECONOMIST AT HONGKONG & SHANGHAI BANKING CORP YET MUCH OF THE CAPITAL THAT HAS BEEN INVESTED IN CHINA HAS BEEN POURED INTO SOCALLED NONPRODUCTIVE AREAS REALESTATE OR STANDARDOFLIVING IMPROVEMENTS RATHER THAN INDUSTRIAL EFFICIENCY DURING THE HECTIC GROWTH PERIOD FROM 1985 TO 1990 HIGHER OUTPUTPERWORKER ACCOUNTED FOR LESS THAN A FIFTH OF GROWTH THE ECONOMY GREW ABOUT THE SAME AMOUNT JUST FROM THE ADDITION OF NEW WORKERS TO THE LABOR FORCE BY CONTRAST NEARLY TWOTHIRDS OF THE AVERAGE 75 ANNUAL GROWTH DURING THAT PERIOD CAME FROM CHINA'S INCREASINGLY ADDICTIVE APPETITE FOR CAPITAL INVESTMENT THERE HAS BEEN TOO LITTLE PRODUCTIVITY GROWTH DECLARES MIRON MUSHKAT A SENIOR VICE PRESIDENT AND CHIEF ECONOMIST FOR LEHMAN BROTHERS INC IN ASIA BUT WE'VE COME TO THE END OF THE ROAD THE EASY PART IS OVER THE BUMPIER PART WILL BEGIN WITH THE ADVENT OF RESTRUCTURINGS ALREADY ANNOUNCED BY BEIJING THE GOVERNMENT PLANS TO LIST A SCORE OF STATEOWNED COMPANIES ON INTERNATIONAL STOCK EXCHANGES THIS YEAR A STEP THAT INEVITABLY WILL REQUIRE RESTRUCTURING THEIR BUSINESSES TO ACCOMMODATE TIGHT INTERNATIONAL ACCOUNTING STANDARDS IT ALSO HAS SAID OTHER LARGE STATE ENTERPRISES WILL BE MADE RESPONSIBLE THIS YEAR FOR THEIR OWN PROFITS AND LOSSES THAT WILL FREE BEIJING FROM LOSSES THAT NOW SOAK UP A THIRD OF ITS DEFICITRIDDEN BUDGET BUT IT ALSO WILL IMPOSE A HEAVY TOLL ON THE COMPANIES WHICH WILL HAVE TO SHED WORKERS PROBABLY BY THE MILLIONS UNTIL NOW CHINA'S LABOR MARKET HAS TARRIED BEHIND REFORMS IN OTHER SECTORS LABOR COSTS REMAIN HIGH AND EVEN HAVE RISEN TO COMPENSATE FOR INFLATION CAUSED BY PRICE REFORMS AND OTHER LIBERALIZATIONS ABUNDANT LABOR REALLY SHOULD HAVE MEANT LOWER WAGES SAYS MR CHIU THAT IT DIDN'T MAKES LAYOFFS IMPERATIVE FOR COMPANIES THAT WANT TO COMPETE INTERNATIONALLY MR MUSHKAT ESTIMATES AS MANY AS 30 MILLION WORKERS COULD BE IDLED BY THIS YEAR'S RESTRUCTURING BRINGING THE RANKS OF CHINA'S UNEMPLOYED TO 160 MILLION BEIJING ALREADY IS CRAFTING UNEMPLOYMENT PROGRAMS AND OTHER COSTLY SOCIALWELFARE NETS THAT ECONOMISTS SAY WILL IMPAIR THE FISCALLY BELEAGUERED GOVERNMENT'S ABILITY TO INVEST IN NEW INFRASTRUCTURE AND OTHER PRODUCTIVITYENHANCING AREAS SUCH AS EDUCATION MAJOR PROJECTS INCLUDING SOME BADLY NEEDED POWER PLANTS ARE ON HOLD THE RESTRUCTURING WARNS JAN C LEE CHIEF REGIONAL ECONOMIST FOR GOLDMAN SACHS & CO WILL RESULT IN AN ECONOMIC CONTRACTION NOT AN EXPANSION THE EARLIEST THE ECONOMY WILL START BENEFITING BY STRUCTURAL CHANGE HE SAYS WOULD BE LATE 1995 THE ROUGH PERIOD COULD PRESENT PROBLEMS SAYS HONGKONG BANK'S MR CHIU THE FEAR IS THAT MAYBE THEY'RE LIBERALIZING TOO FAST HE SAYS IF THE PACE IS TOO FAST IT CAN DESTABILIZE THE WHOLE SYSTEM THE BIGGEST WORRY IS INFLATION PRICES WERE RISING AT AN ALARMING ANNUALIZED RATE OF 239 IN MAJOR CITIES LAST DECEMBER MR LEE NOTES THAT A GOVERNMENT PLAN TO SPEND ROUGHLY 13 TRILLION YUAN ABOUT 150 BILLION THIS YEAR WOULD BE VERY EXPANSIONARY MOREOVER MANY ECONOMISTS FEAR BEIJING WILL TRY TO SOFTEN INDUSTRIAL RESTRUCTURING BY SPENDING MORE MONEY ON SOCIAL PROGRAMS ON THE OTHER HAND IF THE GOVERNMENT STICKS TO THE RESTRUCTURING WITHOUT RESORTING TO MASSIVE NEW SUBSIDIES IT COULD HAVE POSITIVE CONSEQUENCES FOR INFLATION THE REFORM ULTIMATELY REMOVES SUBSIDIES SAYS MICHAEL TAYLOR AN ANALYST AT MORGAN STANLEY GROUP'S HONG KONG OFFICE IT'S DEFLATIONARY THOUGH THE EXACT TIMING OF PRODUCTIVITYBOOSTING REFORMS MAY BE IN QUESTION THEIR IMPORTANCE TO THE ECONOMY ISN'T CHINA'S ECONOMIC PERFORMANCE IN THE INITIAL STATE OF ECONOMIC REFORMS IS NO SMALL ACHIEVEMENT WROTE HONG KONG ECONOMIST KC YEH WHO IDENTIFIED THE PRODUCTIVITY GAP AS A PROBLEM IN AN ARTICLE LAST YEAR IN THE CHINA QUARTERLY BUT THE BASIC PROBLEMS HAVE NOT YET BEEN RESOLVED AND THEY WILL UNDOUBTEDLY SURFACE AGAIN IN THE 1990S 9402160163 940216 KILLING DRUG RESEARCH KILLS PEOPLE CLINTON RATIONS FUTURE CURES BY RICHARD J KOGAN THOMAS JEFFERSON IN 1806 SENT A LETTER TO DR EDWARD JENNER CELEBRATING HIS DISCOVERY OF THE SMALLPOX VACCINE MEDICINE HAS NEVER BEFORE PRODUCED ANY SINGLE IMPROVEMENT OF SUCH UTILITY THE PRESIDENT WROTE YOU HAVE ERASED FROM THE CALENDAR OF HUMAN AFFLICTIONS ONE OF ITS GREATEST TODAY PRESIDENT CLINTON SEEKS TO PROVIDE AMERICANS WITH UNIVERSAL HEALTH CARE BUT HIS STRATEGY APPEARS TO STRESS CUTTING COSTS MORE THAN REDUCING THE CALENDAR OF HUMAN AFFLICTIONS THE PLAN EMBRACES THE CONCEPT THAT WE CANNOT AFFORD ALL THE INVESTMENT IN NEW DRUGS NOR CAN GOVERNMENT AFFORD TO PAY FOR ALL THESE PRODUCTS IT HAS ERECTED A COMPLEX REGULATORY SCHEME TO ENFORCE THIS IDEOLOGY IN FACT AS THE LATE DR LEWIS THOMAS OF MEMORIAL SLOANKETTERING HAS WRITTEN THERE IS NO IMPORTANT HUMAN DISEASE FOR WHICH MEDICINE POSSESSES THE OUTRIGHT CAPACITY TO PREVENT OR CURE WHERE THE COST OF THE TECHNOLOGY IS ITSELF A MAJOR PROBLEM ADVANCES ARE NOT AN OBSTACLE TO COST CONTROL THEY ARE ESSENTIAL TO THE PROCESS THE SUCCESS OF MY COMPANY AND EVERY OTHER BIOPHARMACEUTICAL FIRM HAS ALWAYS RESTED ON THE FUNDAMENTAL PRINCIPLE THAT SCIENTIFIC ADVANCES ARE COSTEFFECTIVE ANTIBIOTICS AND VACCINES REMAIN THE LEAST EXPENSIVE WAY OF TREATING INFECTIOUS DISEASES THE ELIMINATION OF COSTLY ULCER SURGERY AND THE DECLINE IN THE NUMBER OF DEATHS DUE TO HIGH BLOOD PRESSURE WERE MADE POSSIBLE BY THE BREAKTHROUGH MEDICINES OF THEIR DAY DECLINING RATES OF HOSPITALIZATION FOR DISEASES SUCH AS DEPRESSION KIDNEY DISEASE AND CANCER ARE THE RESULT OF NEW DRUGS THAT VASTLY IMPROVED THE EFFECTIVENESS OF INTERVENTION NONETHELESS TREATMENTS FOR MANY OF TODAY'S MOST PREVALENT DISEASES ARE AT A HIGHCOST STAGE IN THE CYCLE OF INNOVATION A RECENT BOSTON CONSULTING GROUP STUDY NOTES THAT THE ANNUAL MEDICAL COSTS OF ONLY SEVEN MAJOR UNCURED DISEASES ACCOUNT FOR ABOUT HALF OF TODAY'S HEALTH CARE BILL CURRENT MEDICAL KNOWLEDGE LEAVES US MIDSTREAM ABLE TO INTERVENE WITH SOME DEGREE OF EFFECTIVENESS IN MANY ILLNESSES BUT STILL SHORT OF A CURE FOR MAJOR DISEASES SUCH AS AIDS ALZHEIMER'S VARIOUS CANCERS MULTIPLE SCLEROSIS ARTHRITIS AND MANY GENETIC DISORDERS FOR MANY OF THESE DISEASES A HIGHLY EFFECTIVE CONTROL OR CURE IS BEING VIGOROUSLY PURSUED AS RESEARCHBASED DRUG FIRMS BEGIN TO APPLY THE UNDERSTANDING OF ILLNESS THAT HAS EMERGED FROM INVESTMENTS IN BIOTECHNOLOGY THE COST OF TREATING TODAY'S MAJOR DISEASES SHOULD PLUNGE IF THE CYCLE OF INNOVATION STALLS WE MAY BE STUCK WITH TODAY'S HIGHESTCOST LESSEFFECTIVE OPTIONS WHILE THE ADMINISTRATION ASSERTS THAT INNOVATIVE DRUGS ARE A MAJOR FACTOR IN RUNAWAY SPENDING PATIENTS WHO HAVE NO EFFECTIVE TREATMENT FACE THE STARK REALITY THAT A DECLINE IN BREAKTHROUGHMEDICINE INVESTMENT WILL RATION THEIR FUTURE CURES NO POLITICIAN WILL BE DEFEATED BY THE CURE THAT DOESN'T COME BUT THE PATIENTS OF TOMORROW WILL LOSE JUST AS SURELY APPARENTLY THE WHITE HOUSE IS SKEPTICAL ABOUT INVESTING SO MUCH IN CURES FOR CERTAIN DISEASES CRITICIZING THE PRICING OF NEW PHARMACEUTICALS IT WANTS TO CREATE A NATIONAL PRICING BOARD A NOTION THAT IS CASTING AN INVESTMENT PALL OVER THE INDUSTRY BUT CONSIDER THE POTENTIAL ADVANCES THAT MAY BE AFFECTED WE AT SCHERINGPLOUGH ARE PURSUING MORE EFFECTIVE TREATMENTS FOR ASTHMA AND HEPATITIS REPLIGEN IS WORKING ON A DRUG TO CURE LATESTAGE CANCERS FOR WHICH NO ALTERNATIVE THERAPIES EXIST MERCK HAS DEVELOPED COMPOUNDS IT HOPES WILL STOP THE PROGRESSION OF HIV INFECTION GENZYME IS WORKING ON GENE THERAPY FOR CYSTIC FIBROSIS AND GAUCHER'S DISEASE EACH OF THESE DRUGS WOULD CONSTITUTE A HUGE MEDICAL ADVANCE SAVING LIVES AND SPURRING FURTHER INVESTMENT THE IDEA THAT A POLITICALLY APPOINTED PRICING BOARD SHOULD RULE ARBITRARILY ON THE ACCESS AND PRICE OF SUCH INNOVATIONS IS APPALLING INDEED DISCOURAGING INVESTMENT IN NEW MEDICINES FOR CERTAIN INDICATIONS WILL SERIOUSLY COMPROMISE THE QUALITY OF CARE FOR MANY ILLNESSES ONE NOTEWORTHY EXAMPLE ALPHA INTERFERON IN DEVELOPING THE FIRST GENETICALLY ENGINEERED ALPHA INTERFERON SCHERINGPLOUGH INITIALLY FOUND THAT ONLY A HANDFUL OF CANCER PATIENTS SHOWED EVEN A PARTIAL REDUCTION IN TUMOR SIZE BUT TO PROCEED WITH DEVELOPMENT OF THE DRUG WE HAD TO COMMIT 100 MILLION TO A RECOMBINANT INTERFERON MANUFACTURING FACILITY WE COMMITTED THE FUNDING BECAUSE OF OUR STEADFAST BELIEF THAT INTERFERON WOULD PROVE USEFUL IN TREATING MANY DISEASES IN 1986 THE DRUG WAS APPROVED IN THE US TO TREAT PEOPLE WITH AN ADVANCED FORM OF HAIRY CELL LEUKEMIA A VERY RARE CANCER OUR TOTAL MARKET AT THE TIME OF APPROVAL WAS FEWER THAN 1000 PEOPLE YET TODAY INTRON A IS A BLOCKBUSTER PRODUCT TREATING 16 DISEASES WITH ANNUAL SALES OF MORE THAN 500 MILLION WORLDWIDE ITS SUCCESS IS REGARDED AS A DEFINING MOMENT IN THE GROWTH OF THE WORLDWIDE BIOTECHNOLOGY INDUSTRY INTRON A IS PRECISELY THE KIND OF DRUG THE CLINTON PLAN DISCOURAGES IT STARTED OUT AS A DUBIOUS TREATMENT FOR A SMALL LARGELY HOPELESS GROUP OF PATIENTS UNDER PRICE CONTROLS DRUGS FOR MANY DISEASE GROUPS WOULD BE SHELVED REGARDLESS OF THEIR POTENTIAL TO ELIMINATE HUMAN SUFFERING THE ADMINISTRATION'S CYNICAL SILENCE ON THE HUMAN COST OF RATIONING IMPORTANT NEW MEDICINES MAKES THE MORAL RHETORIC OF HEALTH CARE REFORM RING HOLLOW WHILE THE PHARMACEUTICAL INDUSTRY IS ACCUSED OF PUTTING PROFITS BEFORE PEOPLE THE ADMINISTRATION'S PLAN PUTS CHEAP DRUGS BEFORE FUTURE CURES COST REDUCTIONS BEFORE QUALITY A POLITICAL STRATEGY BEFORE THE IMPERATIVE OF SUSTAINING MEDICAL PROGRESS MR KOGAN IS PRESIDENT AND CHIEF OPERATING OFFICER OF SCHERINGPLOUGH CORP BASED IN MADISON NJ SEE RELATED ARTICLES EXPENSIVE DRUGS LOWER HEALTH CARE COSTS DEMOGRAPHY AND TECHNOLOGY TIME BOMB AND THE MORAL BATTLE PLAN WSJ FEB 16 1994 9402160162 940216 NOW THE HARD PART VIACOM IS SET TO GROW INTO MEDIA COLOSSUS OR BURDENED GIANT IT GETS PARAMOUNT BUT FACES HEAVY DEBT BLOCKBUSTER POSES COMPLICATIONS TOO NEXT ASSET SALES AND LAYOFFS BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL TRIUMPHING IN A FIVEMONTH STRUGGLE OF EGO AND WILL SUMNER REDSTONE AND HIS VIACOM INC EMERGED VICTORIOUS IN THE EPIC 10 BILLION TAKEOVER BATTLE FOR PUBLISHING AND ENTERTAINMENT GIANT PARAMOUNT COMMUNICATIONS INC BUT IT IS POSSIBLE THE VICTORY COULD PROVE HOLLOW YESTERDAY WITH NEARLY 75 OF PARAMOUNT SHARES TENDERED TO VIACOM RIVAL BIDDER QVC NETWORK INC FORMALLY THREW IN THE TOWEL WITH THIS BRIEF STATEMENT THEY WON WE LOST NEXT THE EXIT OF QVC AND ITS TENACIOUS CHAIRMAN BARRY DILLER CLEARS THE WAY FOR CREATION OF A NEW ENTERTAINMENT CONGLOMERATE INCLUDING NOT JUST VIACOM AND PARAMOUNT BUT ALSO BLOCKBUSTER ENTERTAINMENT CORP THE VIDEOSTORE CHAIN THAT HAS AGREED TO MERGE WITH VIACOM IN A SEPARATE STOCK DEAL TOGETHER EXECUTIVES FROM THE THREE MERGER PARTNERS SAY THE NEW ENTITY WILL BE PREPARED TO STORM THE ENTERTAINMENT MARKETS BY OFFERING A HUGE SUPPLY OF TELEVISION PROGRAMMING FILMS BOOKS AND OTHER SOFTWARE VIACOM ENVISIONS STARRING ITS CRUDE BUT POPULAR MTV CHARACTERS BEAVIS AND BUTTHEAD IN PARAMOUNT FILMS AND IN BOOKS PUBLISHED BY PARAMOUNT'S SIMON & SCHUSTER IT FORESEES PUTTING CHILDREN'S CHARACTERS CREATED BY ITS NICKELODEON CABLE CHANNEL INTO PARAMOUNT'S THEME PARKS BLOCKBUSTER'S VIDEO AND MUSIC RETAIL STORES WOULD CARRY MERCHANDISE FROM PARAMOUNT AND VIACOM MOVIES AND TV SHOWS AND WOULD HELP IN SETTING UP STUDIO STORES TO COMPETE WITH THOSE OF WALT DISNEY CO AND TIME WARNER INC THE COMBINED COMPANY WILL HAVE ALMOST 12 BILLION IN ANNUAL REVENUE TODAY IS ONLY THE BEGINNING OF THE CREATION OF THIS VAST NEW ENTERPRISE THE 70YEAROLD MR REDSTONE PROCLAIMED YESTERDAY BUT WITHOUT MANAGEMENT BRILLIANCE A STRONG STOCK MARKET AND SOME SHEER LUCK THE VICTORY COULD INSTEAD BE THE BEGINNING OF A TREACHEROUS ROAD FOR MR REDSTONE AND VIACOM IN THE VIEW OF MANY ON WALL STREET AND IN HOLLYWOOD VIACOM IS PAYING AN ASTONISHING PREMIUM FOR PARAMOUNT WHOSE COVETED STUDIO IS IN DISARRAY FOLLOWING A STRING OF FILM FLOPS MOST RECENTLY INTERSECTION THE PRICE IS 2 BILLION HIGHER THAN VIACOM AGREED TO PAY JUST LAST SEPTEMBER WHEN THE TWO FIRST STRUCK A FRIENDLY MERGER AGREEMENT VIACOM WILL HAVE TO ACT QUICKLY TO SHED SOME PARAMOUNT ASSETS TO RAISE CASH THERE IS LIKELY TO BE A BLOODLETTING AS VIACOM SLASHES STAFF AT PARAMOUNT TO MEET ITS PROMISE TO SAVE 200 MILLION ANNUALLY IN OVERHEAD COSTS THE IMPACT OF THE DEAL ON HOLLYWOOD AND THE REST OF THE ENTERTAINMENT BUSINESS COULD BE NEARLY AS SEISMIC WITH THE LONG CONTEST OVER SOME OF HOLLYWOOD'S MOST POWERFUL PLAYERS ARE SUDDENLY FINDING THEMSELVES ABOUT TO BE THRUST INTO NEW CAREERS OR KICKED OUT OF OLD JOBS IN A WAY THAT COULD RIPPLE THROUGH THE INDUSTRY THE COMBINED VIACOMPARAMOUNTBLOCKBUSTER WILL BE HEADED BY MR REDSTONE AND FRANK BIONDI HIS LONGTIME NO 2 WHO WILL SERVE AS CHIEF EXECUTIVE OFFICER THAT MEANS THAT PARAMOUNT'S CHAIRMAN MARTIN DAVIS 67 IS GOING TO BE OUT OF A JOB AS IS MOST LIKELY HIS SECONDINCOMMAND STANLEY JAFFE 52 YESTERDAY MR DAVIS SAID THAT HE PLANS TO STAY ON TO HELP WITH AN ORDERLY TRANSITION BUT THAT HE ALREADY HAS HAD DISCUSSIONS ABOUT GOING INTO ANOTHER VENTURE WITH SOME FINANCIAL BACKERS HIS OWN PARAMOUNT STAKE IS WORTH ABOUT 150 MILLION SAID MR DAVIS I'VE ALWAYS DONE EXTREMELY WELL WITH OTHER PEOPLE'S MONEY MR JAFFE HAS SAID THAT HE WILL PROBABLY LEAVE THE COMPANY AND HAS EXPRESSED INTEREST IN BUYING PARAMOUNT'S KNICKS BASKETBALL AND RANGERS HOCKEY TEAMS QVC'S MR DILLER MEANWHILE IS NOW FREE TO TURN HIS SIGHTS ELSEWHERE THE HOLLYWOOD GOSSIP MILL IS ALREADY BUZZING ABOUT HIS SUPPOSED INTEREST IN TIME WARNER INC RUMORS ALSO ARE SWIRLING INSIDE PARAMOUNT ABOUT SOMETHING MORE IMMINENT POSSIBLE FIRINGS AND SALES OF SOME DIVISIONS IN AN INTERVIEW MR BIONDI SAID THE SELLING OF ASSETS IS CLEARLY SOMETHING WE WILL LOOK AT HE WOULDN'T ELABORATE BUT LIKELY CANDIDATES INCLUDE VIACOM'S ONETHIRD INTEREST IN THE LIFETIME CABLE NETWORK AND PARAMOUNT'S HALFINTEREST IN USA NETWORK ANALYSTS BELIEVE OTHER CANDIDATES INCLUDE PARAMOUNT'S MADISON SQUARE GARDEN SPORTS COMPLEX IN NEW YORK ITS SPORTS TEAMS AND ITS TV STATIONS AND THEME PARKS VIACOM IS ALSO LOOKING TO SELL AN INTEREST IN ITS CABLETV SYSTEMS A STRATEGY IT WAS PURSUING BEFORE THE PARAMOUNT DEAL MR BIONDI DECLINED TO SAY HOW MANY EMPLOYEES WOULD LOSE THEIR JOBS PARAMOUNT HAS SOME 12500 EMPLOYEES TO VIACOM'S 5500 ADDING BLOCKBUSTER'S NATIONAL RETAIL EMPIRE TO THE MIX BRINGS THE TOTAL TO 60000 OFFICIALS ACKNOWLEDGE THAT 1000 OR MORE EMPLOYEES AT THE CORPORATE AND ADMINISTRATIVE LEVEL COULD LOSE THEIR JOBS BECAUSE OF OVERLAP THOUGH SOME MIGHT BE ABSORBED INTO NEW BUSINESSES SUCH AS THE BROADCAST NETWORK PARAMOUNT IS TRYING TO FORM WITH PARTNER CHRISCRAFT INDUSTRIES INC MR BIONDI LIKE HIS BOSS MR REDSTONE HAS LONG BEEN RESPECTED AS A DEAL MAKER AND STRATEGIST BUT NEITHER HE NOR ANYONE ELSE AT VIACOM AND BLOCKBUSTER HAS HAD HANDSON EXPERIENCE RUNNING A STUDIO THAT COULD MEAN AN EXPENSIVE LEARNING CURVE PARAMOUNT'S STUDIO IS BY FAR ITS LARGEST UNIT AND ITS RECENT POOR RECORD MAKES IT UNLIKELY THAT MANAGEMENT THERE WILL BE KEPT ON FOR LONG IN ANY MANAGEMENT CHANGE IN HOLLYWOOD IT TYPICALLY TAKES 18 MONTHS TO RESTART PRODUCTION AND GET NEW PROJECTS UNDER WAY AND THE INVESTMENT IN NEW PROJECTS RUNS INTO THE HUNDREDS OF MILLION OF DOLLARS THERE ARE RISKS ON THE VIACOM SIDE OF THE EQUATION AS WELL ITS SHOWTIME AND MTV NETWORKS UNIT ARE FACING GROWING COMPETITION MTV ITS STRONGEST UNIT IS ABOUT TO BE CHALLENGED BY A NEW GLOBAL MUSIC CHANNEL BACKED BY THE FOUR LARGEST RECORD COMPANIES VIACOM EXECUTIVES PROFESS NOT TO BE WORRIED AND SAY THEY ARE PREPARED TO TAKE LEGAL ACTION IF THE RECORD COMPANIES ACT UNFAIRLY MOREOVER VIACOM'S PLAN TO MERGE WITH BLOCKBUSTER A MOVE INTENDED TO BOLSTER VIACOM'S BALANCE SHEET AND PROVIDE CASH FOR THE BID FOR PARAMOUNT FACES MAJOR UNCERTAINTIES THE DECLINE IN VIACOM'S STOCK PRICE HAS ALREADY SHARPLY CUT THE VALUE OF WHAT BLOCKBUSTER SHAREHOLDERS WOULD GET ANGERING THEM AND RAISING THE POSSIBILITY THAT THAT DEAL WILL HAVE TO BE RENEGOTIATED OR EVEN ABANDONED WITHOUT BLOCKBUSTER'S CASH AND ITS BALANCE SHEET THE 8 BILLION IN DEBT VIACOM WOULD HAVE AFTER BUYING PARAMOUNT COULD BE POTENTIALLY CRIPPLING IN THE EVENT OF ANY UNFORESEEN BUSINESS SETBACKS WITH ESTIMATED CASH FLOW OF 12 BILLION THE COMBINED PARAMOUNTVIACOM ALONE WOULD HAVE ENOUGH CASH TO COVER ITS INTEREST PAYMENT TWICE OVER BUT SUCH A MARGIN IS STILL DEEMED NARROW BY SOME ANYTIME YOU FALL BELOW 22 OR 23 THAT IS VERY TIGHT SAYS LISBETH BARRON AN ANALYST WITH SG WARBURG & CO IT PUTS A LOT OF STRAIN ON THE MANAGEMENT OF VIACOM IN THE SENSE THAT THEY ARE LEAVING LITTLE ROOM FOR DISAPPOINTMENT OF CASH FLOW OR FOR MORE SKELETONS IN PARAMOUNT'S CLOSET THAT THEY AREN'T AWARE OF WITH BLOCKBUSTER'S CASH FLOW OF 500 MILLION VIACOM COULD COVER INTEREST PAYMENTS A COMFORTABLE THRICE OVER THAT IS REALLY THE INCENTIVE TO DO A MERGER WITH BLOCKBUSTER MS BARRON SAYS IT WOULD GIVE THEM A VERY STABLE BASE AT THE SAME TIME THE MERGER WITH BLOCKBUSTER IF IT DOES GO THROUGH PRESENTS TROUBLING QUESTIONS ABOUT THE FUTURE AS THE NATION'S LARGEST VIDEO AND MUSIC RETAILER BLOCKBUSTER HAS GOOD IMMEDIATE PROSPECTS BUT LONGER TERM ITS VIDEO RENTAL STORES FACE STIFF COMPETITION AS CABLE AND TELEPHONE COMPANIES RACE TO PROVIDE MANY CHANNELS DIRECTLY INTO THE HOME OFFERING MOVIES ON DEMAND STILL MANY ANALYSTS ARE BULLISH ON A VIACOMBLOCKBUSTERPARAMOUNT COMBINE THEY HAVE THEIR WORK CUT OUT FOR THEM PUTTING TOGETHER THREE COMPANIES SAYS ED HATCH AN ANALYST AT UBS SECURITIES BUT AFTER THE DUST SETTLES THIS COMBINATION COULD SURPRISE INVESTORS VIACOM'S B SHARES HAVE ALREADY DROPPED ABOUT 50 FROM A PEAK OF 55 A SHARE AND YESTERDAY FELL 1875 TO CLOSE AT 28 A SHARE IN AMERICAN STOCK EXCHANGE TRADING THOUGH MR HATCH BELIEVES THE STOCK PRICE COULD BOUCE BACK SOMEWHAT OVER THE NEXT FEW MONTHS IF THE PRICE DOESN'T REACH AT LEAST 36 A SHARE NEXT YEAR AND 38 A SHARE IN THREE YEARS VIACOM WILL BE FORCED UNDER THE TERMS OF ITS OFFER TO PAY PARAMOUNT SHAREHOLDERS AS MUCH AS ANOTHER 1 BILLION MR HATCH AND OTHER ANALYSTS AGREE THAT THE MOST DAUNTING TASK WILL BE RESTORING THE PARAMOUNT STUDIO TO STRENGTH ITS CASH FLOW WILL BE SOME 100 MILLION LESS THAN EXPECTED THIS YEAR THOUGH IT HAS A RICH LIBRARY OF NEARLY 1000 MOVIES AND 6000 TV EPISODES THE STUDIO IS EXPECTED TO REPORT A 35 MILLION TO 40 MILLION LOSS IN THE THIRD QUARTER ENDED JAN 31 FORCING THE PARENT COMPANY TO REPORT AN 18 MILLION LOSS MOVIES LIKE ADDAMS FAMILY VALUES AND THE SEARCH FOR BOBBY FISCHER HAVE BEEN BIG DISAPPOINTMENTS PRODUCTION BUDGETS HAVE GOTTEN BLOATED OVER THE PAST SIX MONTHS MR JAFFE THE PARAMOUNT PRESIDENT AND STUDIO CHIEF SHERRY LANSING HAVE CONTINUED TO MAKE HIGHPRICED DEALS IN HOLLYWOOD AND SIGNED EXPENSIVE CONTRACTS WITH PRODUCERS AND OTHER TALENT ACCORDING TO INSIDERS THE STUDIO HAS INVESTED A TOTAL OF 180 MILLION IN PRODUCTION AND MARKETING OF BLUE CHIPS ANOTHER BEVERLY HILLS COP SEQUEL AND TWO OTHER SUMMER FILMS INCLUDING FORREST GUMP STARRING TOM HANKS THE ISSUE IS WHETHER THE PICTURES ARE TOO HIGHLY BUDGETED MR REDSTONE SAID THOSE WON'T BE AS HIGH WHILE MS LANSING WAS A RESPECTED FILM PRODUCER BEFORE SHE TOOK THE PARAMOUNT HELM SHE HASN'T BEEN ABLE TO ACHIEVE PRODUCTION OF A STEADY STREAM OF HIT FILMS AT THE STUDIO SHE MAY STAY IN THE NEAR TERM BUT MESSRS REDSTONE AND BIONDI ARE EXPECTED TO SEEK A REPLACEMENT MS LANSING COULDN'T BE REACHED FOR COMMENT MR REDSTONE SAID IT IS PREMATURE TO DISCUSS WHO WILL RUN THE STUDIO WE AREN'T AT THE POINT WHERE WE CAN MAKE THAT DECISION HE SAID I THINK SHERRY LANSING IS VERY GOOD BARRY DILLER IS GOOD BUT I DON'T THINK HE IS LOOKING FOR A JOB HE ADDED WE ARE LOOKING AT THE LONG TERM WE HAVE A NUMBER OF PEOPLE WHO HAVE A LOT OF FAMILIARITY WITH THAT BUSINESS MR REDSTONE SAID VIACOM EXPECTS A TOTAL TURNAROUND IN THE PARAMOUNT OPERATIONS MR BIONDI SAID THE COMPANY ALSO PLANS TO FOCUS ON PRODUCING MORE VOLUME MORE MOVIES MORE TV SHOWS MORE GAMES MORE CABLE NETWORKS OVERSEAS WITH VIACOM'S CABLE SYSTEMS AND INVESTOR NYNEX'S TELECOMMUNICATIONS EXPERTISE ADDED TO THE MIX THE COMPANY WILL BE ABLE TO PUSH ITS ENTERTAINMENT PRODUCTS INTO INTERACTIVE APPLICATIONS MR BIONDI ADDED BLOCKBUSTER IS ALSO EXPERIMENTING WITH TECHNOLOGY THAT WOULD ALLOW CUSTOMERS TO MAKE UP THEIR OWN COMPACT DISKS IN ITS 500 MUSIC STORES MESSRS REDSTONE AND BIONDI PLAY DOWN THE FINANCIAL IMPORTANCE OF THE PARAMOUNT STUDIO THE STUDIO WILL ACCOUNT FOR ONLY A SMALL PART OF TOTAL CASH FLOW MR REDSTONE SAID OUR FOCUS HAS BEEN NOT SO MUCH ON RUNNING THE STUDIO AS ON PUTTING TOGETHER ASSETS OF THREE GREAT COMPANIES AND MAXIMIZING THEIR VALUE SUCH STATEMENTS RAISE EYEBROWS IN HOLLYWOOD WHERE THE WHOLE REASON FOR PAYING SUCH A PREMIUM IS THOUGHT TO BE THE RARITY OF FILMED ENTERTAINMENT COMPANIES MOREOVER THE CONVENTIONAL WISDOM HAS LONG BEEN THAT THE STUDIOS DRIVE THE ENGINES OF SUCH ENTERTAINMENT CONGLOMERATES AS TIME WARNER MATSUSHITA ELECTRIC CO'S MCA AND NEWS CORP A BAD YEAR AT A STUDIO CAN CRUSH THE PARENT COMPANY'S RESULTS AS IS THE CASE WITH PARAMOUNT IN THE LATEST QUARTER WHILE A GOOD YEAR CAN REAP HUGE PROFITS AS MCA FOUND WITH THE MEGAHIT OF ITS UNIVERSAL STUDIOS JURRASSIC PARK RESULTS FROM ANOTHER BLOCKBUSTER HOME ALONE HELPED KEEP NEWS CORP ABOVE WATER DURING ITS FINANCIAL CRISIS A FEW YEARS AGO BUT VIACOM OFFICIALS YESTERDAY STRESSED THE OPPORTUNITIES FOR GROWTH AND SYNERGY ACROSS THE MERGED COMPANY YOU'VE GOT THE LARGEST TVDISTRIBUTION COMPANY IN THE WORLD SAID MR BIONDI PLUS THE LARGEST VIDEO RETAILER A WORLDWIDE CABLE NETWORKING GIANT A WORLDCLASS PUBLISHING ARM ONE OF THE SIX MAJOR FILMEDENTERTAINMENT DISTRIBUTORS AND ONE OF THE TOP VIDEOCASSETTEDISTRIBUTION COMPANIES SAID MR BIONDI AND YOU HAVE A TERRIFIC COLLECTION OF FRANCHISED COPYRIGHTS WHICH ALL THREE COMPANIES ARE DISTRIBUTING IN VARIOUS MEDIA 9402160161 940216 WHO'S NEWS SUN MICROSYSTEMS INC SUN MICROSYSTEMS INC MOUNTAIN VIEW CALIF ERIC SCHMIDT PREVIOUSLY HEAD OF THIS COMPUTING CONCERN'S SUN TECHNOLOGY ENTERPRISES WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF TECHNOLOGY OFFICER FOR THE ENTIRE COMPANY MR SCHMIDT 38 YEARS OLD WILL BE SUCCEEDED BY ED ZANDER 47 WHO RETAINS HIS POST AS HEAD OF SUNSOFT THE COMPANY'S SOFTWARE UNIT IN A RELATED MOVE CHET SILVESTRI 45 PREVIOUSLY VICE PRESIDENT OF SALES AND MARKETING FOR SUN'S SPARC CHIP BUSINESS WAS NAMED HEAD OF THAT BUSINESS HE SUCCEEDS BOB GRAHAM 43 WHO RESIGNED LAST DECEMBER TO FORM HIS OWN BUSINESS 9402160160 940216 ASSOCIATED ESTATES' CREDIT CLEVELAND ASSOCIATED ESTATES REALTY CORP SAID IT SIGNED A LETTER OF COMMITMENT WITH NATIONAL CITY BANK A UNIT OF NATIONAL CITY CORP CLEVELAND FOR ISSUANCE OF A 75 MILLION LINE OF CREDIT THE CREDIT LINE WOULD BE USED MAINLY IN THE ACQUISITION OF APARTMENT PROPERTIES THE REAL ESTATE INVESTMENT TRUST SAID 9402160159 940216 WHO'S NEWS ECC INTERNATIONAL CORP ECC INTERNATIONAL CORP WAYNE PA MAX M KAMPELMAN 74 YEARS OLD WAS NAMED A DIRECTOR OF THIS DESIGNER AND MAKER OF SIMULATORS AND MILITARY TRAINING PROGRAMS INCREASING THE BOARD TO EIGHT MR KAMPELMAN A PARTNER AT FRIED FRANK HARRIS SHRIVER & JACOBSON A WASHINGTON DC LAW FIRM WAS FORMERLY COUNSELOR OF THE STATE DEPARTMENT AND AMBASSADOR AND HEAD OF THE U S DELEGATION TO THE NEGOTIATIONS ON NUCLEAR AND SPACE ARMS IN GENEVA 9402160158 940216 LAW ACLU CHARGES NATIONAL MERIT TESTING DISCRIMINATES AGAINST HIGH SCHOOL GIRLS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THE AMERICAN CIVIL LIBERTIES UNION FILED A COMPLAINT WITH THE US DEPARTMENT OF EDUCATION ALLEGING THAT THE TEST USED TO AWARD NATIONAL MERIT SCHOLARSHIPS IS BIASED AGAINST GIRLS THE COMPLAINT ASKS FOR A RULING AGAINST THE NONPROFIT EDUCATIONAL TESTING SERVICE AND THE COLLEGE BOARD THE TEST'S SPONSORS UNDER TITLE IX OF FEDERAL EDUCATION LAWS WHICH PROHIBITS SEX DISCRIMINATION THE COLLEGE BOARD A COLLEGIATE CONSORTIUM CONTRACTS WITH ETS TO GIVE THE PRELIMINARY SCHOLASTIC APTITUDE TEST OR PSAT TO PICK NATIONAL MERIT SEMIFINALISTS ABOUT 60 OF THE WINNERS ARE BOYS THE COMPLAINT ASKS THE DEPARTMENT TO FIND THE TESTS BIASED AFTER WHICH IT COULD HALT CONTRACTS WITH THE TWO ORGANIZATIONS UNTIL THEY CHANGED THE TESTS ABOUT 25 MILLION IS AWARDED BY CORPORATIONS AND OTHER SPONSORS THROUGH THE NATIONAL MERIT PROGRAM BUT A SUCCESSFUL COMPLAINT WOULD POSE PROBLEMS FOR MANY OTHER SCHOLARSHIPS BASED ON THE SCHOLASTIC ACHIEVEMENT TEST OR SAT AND OTHER SIMILAR TESTS IN A 1989 SUIT THE NATIONAL ORGANIZATION FOR WOMEN SUCCESSFULLY CHALLENGED THE USE OF STANDARDIZED TESTS IN AWARDING REGENTS SCHOLARSHIPS IN NEW YORK STATE THE JUDGE IN THAT CASE ORDERED THE REGENTS TO ALSO CONSIDER GRADES IN MAKING THEIR AWARDS THE COMPLAINT COMES AMID GROWING CHARGES OF GENDER BIAS IN US EDUCATION AND TESTING ALTHOUGH TESTMAKERS HAVE ELIMINATED MOST QUESTIONS THAT APPEAR TO GIVE ONE RACE OR GENDER AN ADVANTAGE SOME EXPERTS SAY MULTIPLECHOICE TESTS THEMSELVES ARE UNFAIR TO GIRLS BECAUSE GIRLS ARE RELUCTANT TO GUESS DAVID SADKER AN AMERICAN UNIVERSITY EDUCATION PROFESSOR AND COAUTHOR OF A BOOK ON GIRLS' TREATMENT IN SCHOOLS SAYS SOME PEOPLE DEFINE GIRLS AS BETTER COURSETAKERS AND BOYS AS BETTER TESTTAKERS ABOUT 55 OF THE STUDENTS WHO TAKE THE PSAT EACH YEAR ARE GIRLS HOWEVER THEY WOUND UP WITH LESS THAN 38 OF THE SEMIFINALIST'S SPOTS IN THE PAST SEVEN YEARS ACCORDING TO NATIONAL CENTER FOR FAIR AND OPEN TESTING A CAMBRIDGE MASS GROUP THAT HELPED BRING THE COMPLAINT THE COMPLAINT DOESN'T CITE NATIONAL MERIT SCHOLARSHIP CORP THE EVANSTON ILL NONPROFIT ORGANIZATION THAT ADMINISTERS THE SCHOLARSHIPS BUT WHICH DOESN'T RECEIVE FEDERAL MONEY AND ISN'T SUBJECT TO TITLE IX FRED MORENO A SPOKESMAN FOR THE COLLEGE BOARD SAID THE TEST IS BEING BLAMED FOR OTHER PROBLEMS THE COURSES GIRLS TAKE IN HIGH SCHOOL THEIR SOCIAL AND ECONOMIC BACKGROUNDS WHETHER THEIR SIXTHGRADE TEACHER SAID GIRLS CAN'T DO MATH MAY ALL CONTRIBUTE TO THE DIFFERENT PERFORMANCE HE ADDED IT'S AS IF A MAN AND A WOMAN WERE IN A RACE AND THE MAN WON 100 TIMES THEY'D SAY THERE'S SOMETHING WRONG WITH THE RACE THE COLLEGE BOARD SAYS SEVERAL INDEPENDENT STUDIES IN RECENT YEARS SHOW THAT PSAT AND SAT SCORES ARE GOOD PREDICTORS OF COLLEGE PERFORMANCE CINTHIA SCHUMAN OF THE FAIR AND OPEN GROUP SAID OTHER STUDIES INDICATE THAT GIRLS DO BETTER IN COLLEGE THAN THE TESTS INDICATED THEY WOULD THE MULTIPLECHOICE FORMAT OF THE PSAT HAS REAL PROBLEMS IN REFLECTING THE TRUE ACADEMIC PERFORMANCE OF FEMALES MS SCHUMAN SAID THE EMPHASIS ON SPEED AND GUESSING WORK TO THE DETRIMENT OF FEMALES WHO MAY BE RISKAVERSE EVEN THOUGH GUESSING CAN PAY OFF WITH HIGHER SCORES MS SCHUMAN SAID THAT IN A STUDY OF THE CALIFORNIA BAR EXAM BY HER GROUP MEN DID BETTER ON THE MULTIPLECHOICE PORTION WHILE WOMEN DID BETTER WITH ESSAY QUESTIONS 9402160157 940216 CANADIAN IMPERIAL BANK ISSUE TORONTO CANADIAN IMPERIAL BANK OF COMMERCE SAID IT PLANS TO ISSUE 250 MILLION CANADIAN DOLLARS US1847 MILLION OF 10YEAR 71 SUBORDINATED DEBENTURES THE BANK SAID THE ISSUE DUE MARCH 10 2004 WILL BE PRICED AT C9975 TO YIELD 7135 A SPREAD OF 50 BASIS POINTS OVER THE GOVERNMENT OF CANADA'S 10YEAR BOND DUE IN JUNE 2004 WOOD GUNDY INC A TORONTOBASED INVESTMENT DEALER IS LEAD UNDERWRITER FOR THE ISSUE 9402160156 940216 HOW SOME COMPANIES HELP WITH ELDER CARE BY SUE SHELLENBARGER EMPLOYERS WHO HAVE STUDIED ELDER CARE IN THE WORKPLACE HAVE DEVELOPED SOME STRATEGIES FOR COPING SOME UTOPIAN IDEAS OF THE 1980S SUCH AS BUILDING ONSITE ADULT DAYCARE CENTERS HAVE MOSTLY FALLEN OUT OF FAVOR INSTEAD EMPLOYERS ARE EMBRACING LESS COSTLY ALTERNATIVES AIMED AT GIVING EMPLOYEES INFORMATION AND JOB FLEXIBILITY TO RESOLVE ELDERCARE CRISES WITHOUT MISSING MUCH WORK HERE ARE A FEW STRATEGIES EMPLOYEE SEMINARS BROWNBAG LUNCHES AND SEMINARS ARE AIMED AT HELPING WORKERS PLAN FOR ELDERCARE NEEDS WORK/FAMILY DIRECTIONS INC A BOSTON CONSULTING FIRM GAVE 575 ELDERCARE SEMINARS FOR CLIENTS' EMPLOYEES LAST YEAR UP 27 FROM 1992 ON SUCH TOPICS AS CHOOSING A NURSING HOME PAYING FOR ELDER CARE AND LEGAL ISSUES RAISED BY AGING RESOURCE AND REFERRAL HOT LINES OFFER ADVICE ON SUCH ISSUES AS NURSINGHOME ALTERNATIVES HOME SAFETY FOR ELDERS HELPING AGED RELATIVES FROM AFAR AND LEGAL AND FINANCIAL PLANNING THE PARTNERSHIP GROUP LANSDALE PA OFFERS REFERRALS TO LAWYERS WHO HELP UNRAVEL MEDICARE FOULUPS WORKING SOLUTIONS INC PORTLAND ORE PROVIDES CASE MANAGERS WHO WORK WITH EMPLOYEES RESOURCE AND REFERRAL SERVICES COST ABOUT 8 TO 13 PER ELIGIBLE EMPLOYEE PER YEAR FLEXIBLE SCHEDULING FLEXIBLE SCHEDULING IS A MAINSTAY OF ELDERCARE PROGRAMS U S WEST INC SAYS ITS SURVEYS SHOW FLEXIBILITY IS WHAT EMPLOYEES WANT MOST BECAUSE IT LETS THEM SOLVE PROBLEMS PRIVATELY WITHOUT FALLING BEHIND AT WORK CONTINENTAL CORP ENCOURAGES MANAGERS TO FOLLOW A RULE OF FLEXIBILITY EXPERIMENTING WITH WORK ARRANGEMENTS TO SOLVE ELDERCARE PROBLEMS SAYS JOHN P MASCOTTE CHAIRMAN AND CHIEF EXECUTIVE THE RESULT AN UNUSUALLY HIGH 14 OF CONTINENTAL'S NONHEADQUARTERS EMPLOYEES ARE ON REDUCED HOURS AND WORK AT HOME SOME OTHERS WORK FLEXTIME OR OTHER SCHEDULES SEE RELATED ARTICLE GERIATRIC CASES THE AGING OF AMERICA IS MAKING ELDER CARE' A BIG WORKPLACE ISSUE EMPLOYEES WHO JUGGLE JOBS AND PARENTAL NEEDS HAND BOSSES A NEW CHALLENGE TAKING DAYS OFF FOR MOM WSJ FEB 16 1994 9402160155 940216 WHO'S NEWS BIOMECHANICS CORP OF AMERICA BIOMECHANICS CORP OF AMERICA MELVILLE NY JOEL L GOLD 52 YEARS OLD AND ROBERT P WONG 53 WERE ELECTED DIRECTORS AT THIS ERGONOMICS CONSULTING SERVICES AND PRODUCTS PROVIDER BRINGING THE BOARD TO SIX MEMBERS MR GOLD IS A MANAGING DIRECTOR AT FURMAN SELZ INC AND MR WONG IS AN INDEPENDENT INVESTOR 9402160154 940216 MEDICAL CARE EXTENDS OFFER DALLAS MEDICAL CARE AMERICA INC SAID IT EXTENDED THE EXPIRATION DATE OF ITS TENDER OFFER FOR SEVEN MILLION SHARES OF ITS COMMON STOCK TO MIDNIGHT EST MARCH 9 THE OFFER PRICED AT 26 TO 29 A SHARE WAS TO EXPIRE AT MIDNIGHT EST FEB 24 COMPLETION OF THE TENDER OFFER IS CONTINGENT ON THE SALE OF ITS UNIT CRITICAL CARE AMERICA INC TO CAREMARK INTERNATIONAL INC THAT TRANSACTION AWAITS GOVERNMENT APPROVAL MEDICAL CARE'S BUSINESS IS SURGICAL CENTERS 9402160153 940216 WHO'S NEWS INTERNATIONAL AIRLINE DISMISSES ITS PRESIDENT AMID RESTRUCTURING MIAMI INTERNATIONAL AIRLINE SUPPORT GROUP INC DISMISSED ITS PRESIDENT AND PLANS TO CUT 40 WORKERS IN A REORGANIZATION OF THE COMMERCIALAIRCRAFT MAINTENANCE AND AIRLINEPARTS COMPANY THE COMPANY ALSO SAID ITS CHIEF FINANCIAL OFFICER WILLIAM SIMONS IS RESIGNING MR SIMONS 40 YEARS OLD COULDN'T BE REACHED IMMEDIATELY FOR COMMENT FORMER PRESIDENT DENNIS YOUNG 53 SAID THE COMPANY IS ON THE RIGHT TRACK IT HAS TO GET COSTS INTO CONTROL IT MAKES SENSE TO NOT HAVE A HIGHPAID EXECUTIVE ON TOP ALEXIUS DYER III 37 EXECUTIVE VICE PRESIDENT WILL SUCCEED MR YOUNG AS PRESIDENT KYLE KIRKLAND 31 A DIRECTOR AND INVESTMENT BANKER IN BEVERLY HILLS CALIF WILL COVER FINANCIAL RESPONSIBLITIES AT THE COMPANY WHILE IT SEARCHES FOR A NEW CHIEF FINANCIAL OFFICER IN ADDITION TO CUTTING 31 OF ITS 130 WORKERS THE COMPANY SAID IT IS REDUCING SENIORMANAGEMENT SALARIES BY ONEFIFTH AND CUTTING CORPORATE EXPENSES SAVING 600000 ANNUALLY THE COMPANY HAD A 13 MILLION LOSS FOR ITS FISCAL SECOND QUARTER ENDED NOV 30 COMPARED WITH NET INCOME OF 731075 A YEAR EARLIER THE COMPANY'S SALES OF JET PARTS HAVE BEEN RUNNING AT 1 MILLION A MONTH HALF THE EXPECTED RATE IN A SOFT MARKET FOR BOEING 727 PARTS MR DYER SAID WE'RE TRYING TO STREAMLINE THE COMPANY TO GET COSTS IN LINE WITH REVENUE AND MARKET CONDITIONS HE SAID 9402160152 940216 AMSOUTH PLANS PURCHASE BIRMINGHAM ALA AMSOUTH BANCORP A BANKING FIRM SAID IT SIGNED A LETTER OF INTENT TO BUY CLOSELY HELD TAMPA BANKING CO WHICH HAS FOUR BRANCHES IN HILLSBOROUGH COUNTY FLA AMSOUTH WOULDN'T DISCLOSE TERMS OF THE TRANSACTION WHICH THE COMPANY SAID WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS FOR STOCK 9402160151 940216 INTERNATIONAL LABOR STANDOFF IN GERMANY TESTS UNIONS' STRENGTH AMID RECESSION BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GERMANY'S METALWORKING INDUSTRY IS SLIDING EVER FASTER TOWARD A MASSIVE LABOR CONFLICT AND THE BATTLE IS SHAPING UP AS A TESTCASE FOR THE RESTRUCTURING OF GERMANY'S RECESSIONBATTERED ECONOMY AND THE DURABILITY OF GERMANY'S TRADITIONALLY POWERFUL UNIONS BOTH THE IG METALL UNION AND THE INDUSTRIES INVOLVED INCLUDING AUTOMOBILE ENGINEERING AND MACHINEBUILDING COMPANIES SAY THEY AGREE ON THE CORE ISSUE THAT MORE WORKTIME FLEXIBILITY IS NEEDED BUT THEY DIFFER SHARPLY ON HOW TO IMPLEMENT IT AND AT WHAT COST WITH NEGOTIATIONS BROKEN DOWN BOTH SIDES ARE SAYING NO NEW TALKS ARE LIKELY BEFORE IG METALL THE COUNTRY'S LARGEST UNION BEGINS POLLING IT'S 32 MILLION MEMBERS IN A STRIKE VOTE ON MONDAY A STRIKE COULD BEGIN MARCH 4 IN THE MEANTIME IG METALL IS RESUMING ITS SHORT WARNING STRIKES THE THIRD WEEK OF SUCH ACTIONS THE PROSPECT OF A CRIPPLING WORK STOPPAGE HAS PROMPTED POLITICAL LEADERS TO URGE THAT THE UNION AND THE EMPLOYERS' ASSOCIATION GESAMTMETALL FIND A COMPROMISE FAST LABOR MINISTER NORBERT BLUEM SAID A STRIKE IN THE CURRENT ECONOMIC SITUATION WOULD BE LIKE A FIST IN THE EYE OFFICIALLY THE TWO SIDES REMAIN FAR APART ON A RANGE OF ISSUES INCLUDING THE UNION'S DEMAND FOR A 55 WAGE INCREASE AND THE EMPLOYERS' DETERMINATION TO CUT THE EXTRA PAY THAT WORKERS GET WHEN THEY'RE ON VACATION WHICH AVERAGES ABOUT TWO WEEKS' WAGES BUT WHILE A DEAL COULD PROBABLY BE STRUCK ON THOSE POINTS THE CENTRAL DIFFICULTIES THUS FAR HAVE REVOLVED AROUND THE LENGTH OF THE WORK WEEK ONE OF THE MOST SACRED ISSUES FOR THE GERMAN LABOR MOVEMENT LABOR COSTS ARE RISING FOUR TIMES AS FAST AS IN OTHER WESTERN COUNTRIES EMPLOYERS SAY INSISTING THAT A RETURN TO COMPETITIVENESS HINGES ON LOWERING THOSE COSTS ABOUT 5 AND GETTING MORE HOURS OUT OF WORKERS WHEN ORDERS PILE UP CONSEQUENTLY THE EMPLOYERS ASSOCIATION PROPOSED A CONTRACT CLAUSE ALLOWING INDIVIDUAL COMPANIES TO LENGTHEN THE WORKWEEK TO 40 HOURS FROM THE CURRENT 36 WITHOUT PAYING OVERTIME BUT AT A TIME WHEN VOLKSWAGEN AG'S FOURDAY WEEK IS CREDITED WITH SAVING 30000 JOBS AND HAS BEEN HERALDED AS AN ANTIDOTE TO SPIRALING UNEMPLOYMENT UNIONISTS WANT THE WORK SPREAD AROUND IG METALL COUNTERED EMPLOYER DEMANDS BY SUGGESTING A 3040 HOUR WEEK WITH THE BENCHMARK BEING 35 HOURS SUCH A PLAN WOULD ACCELERATE THE TIMETABLE FOR A SHORTER WORK WEEK WHICH EMPLOYERS BACK IN BETTER TIMES HAD AGREED TO IMPLEMENT IN 1995 A DECISION THEY NOW REGRET THE UNION OFFERED TO MODERATE ITS WAGE DEMANDS IN RETURN FOR THE SHORTER WEEK IN VIEW OF FOUR MILLION UNEMPLOYED SAID IG METALL SPOKESMAN JOERG BARCZYNSKI NO ONE WOULD UNDERSTAND HOW WE COULD DEMAND THAT PEOPLE WITH JOBS HAVE LONGER WORKING HOURS ALTHOUGH FEW BELIEVE A STRIKE WOULD BE IN EITHER SIDE'S INTEREST THE RECESSION HAS PUT US IN A VERY DIFFICULT SITUATION SO THE FRONTS HAVE GOTTEN HARDER SAYS WOLFGANG SCHEREMET OF THE GERMAN INSTITUTE FOR ECONOMIC RESEARCH IN BERLIN IG METALL HAS BEEN WOUNDED BY THE LOSS OF 600000 JOBS IN THE METALWORKING SECTOR OVER THE LAST TWO YEARS AND IS THUS BEING FORCED TO PROVE ITSELF AS A JOBSAVER AFTER THREE YEARS OF DECLINING BUSINESS THE EMPLOYERS' ASSOCIATION HAS BECOME ESPECIALLY AGGRESSIVE AND TOOK THE UNPRECEDENTED STEP LAST YEAR OF CANCELING THE CURRENTCOLLECTIVE BARGAINING AGREEMENT TRADITIONALLY A STEP LEFT TO THE UNION SMALLER FIRMS WHICH COULDN'T COPE WITH WAGE AGREEMENTS DICTATED PRIMARILY BY GERMANY'S LARGEST COMPANIES HAVE SPARKED THE CHANGE OF TONE MANY OF THEM HAVE EVEN DROPPED OUT OF THE INDUSTRYWIDE COLLECTIVEBARGAINING PROCESS ABETTED BY SYMPATHETIC WORKERS' COUNCILS THAT IN TURN POSES A SERIOUS THREAT TO THE BARGAINING PROCESS AND TO THE LONGTERM POWER OF GERMAN UNIONS DEFENDERS OF THE COLLECTIVEBARGAINING SYSTEM WHO ARE STILL LEGION GIVE IT CONSIDERABLE CREDIT FOR CONTRIBUTING TO GERMANY'S HISTORICALLY CLOSE RELATIONS BETWEEN MANAGEMENT AND LABOR AND LOW NUMBER OF ANNUAL STRIKE DAYS I THINK THE EMPLOYERS ASSOCIATIONS BY AND LARGE WANT TO KEEP INDUSTRYWIDE BARGAINING BECAUSE THEY SEE IT HAS ADVANTAGES FOR THE WHOLE ASSOCIATION BUT THE SMALLER FIRMS ARE EMBITTERED SAYS MR SCHEREMET THE COLLECTIVEBARGAINING SYSTEM IS DEFINITELY IN DANGER IN GERMANY 9402160150 940216 EXCONSUMERS UNION OFFICIAL PLEADS GUILTY TO MAIL FRAUD CHARGE WHITE PLAINS NY A FORMER CHIEF FINANCIAL OFFICER FOR CONSUMERS UNION PUBLISHER OF CONSUMER REPORTS MAGAZINE PLEADED GUILTY IN FEDERAL COURT TO ONE COUNT OF MAIL FRAUD FOR PARTICIPATING IN A KICKBACK SCHEME ASSISTANT US ATTORNEY DEIRDRE DALY SAID DAVID W GRANSTON ADMITTED RECEIVING ABOUT 100000 IN KICKBACKS FROM THREE BROKERS IN EXCHANGE FOR CONSUMERS UNION PURCHASING GOODS AND SERVICES FROM THEM SHE SAID MR GRANSTON FACES A MAXIMUM SENTENCE OF FIVE YEARS IN JAIL AND A FINE OF 250000 HE WILL BE SENTENCED ON APRIL 22 SHE SAID MR GRANSTON 56 YEARS OLD WAS INDICTED LATE LAST YEAR ON ONE COUNT OF CONSPIRACY AND 12 COUNTS OF MAIL FRAUD MS DALY SAID THAT UNDER AN AGREEMENT WITH THE GOVERNMENT THE OTHER COUNTS WILL BE DISMISSED AT THE TIME OF SENTENCING BUT THAT MR GRANSTON'S PUNISHMENT WILL REFLECT THE FULL AMOUNT OF THE 100000 HE RECEIVED IN KICKBACKS MR GRANSTON WHO NOW LIVES IN NORTH EAST HARBOR MAINE WAS CHIEF FINANCIAL OFFICER AT CONSUMERS UNION FROM 1983 UNTIL HIS DISMISSAL IN APRIL 1991 HE COULDN'T BE REACHED FOR COMMENT 9402160149 940216 AMAX GOLD'S LINE OF CREDIT GOLDEN COLO AMAX GOLD INC SAID IT RECEIVED A COMMITMENT FOR A 100 MILLION LINE OF CREDIT FROM CYPRUS AMAX MINERALS CORP A PORTION WILL BE USED TO PAY EXISTING DEBT GUARANTEED BY CYPRUS AMAX IN ADDITION CYPRUS AMAX WILL PURCHASE THREE MILLION AMAX GOLD COMMON SHARES AT 6888 EACH TO REPAY ABOUT 207 MILLION OF AMAX GOLD DEBT TO CYPRUS AMAX RAISING CYPRUS AMAX'S SHARE OF THE GOLD COMPANY TO 42 FROM 40 AMAX GOLD CAN PAY BACK ANY MONEY BORROWED ON THE CREDIT LINE IN AMAX GOLD CONVERTIBLE PREFERRED STOCK THE CONVERSION TO COMMON STOCK WOULD INCREASE CYPRUS AMAX'S STAKE TO JUST UNDER 50 9402160147 940216 INTERNATIONAL PHARMACIA'S US SUBSIDIARY STOCKHOLM PHARMACIA AB A SWEDISH PHARMACEUTICAL GROUP SAID TUESDAY THAT IT PLANS TO SELL ITS WHOLLY OWNED US SUBSIDIARY PHARMACIA DELTEC INC THE DELTEC SUBSIDIARY BASED IN ST PAUL MINN DEVELOPS AND MANUFACTURERS DRUGDELIVERY SYSTEMS ANNUAL SALES OF THE SUBSIDIARY WHICH HAS A STAFF OF 600 ARE ABOUT 100 MILLION PHARMACIA SAID IT RETAINED LEHMAN BROTHERS AS FINANCIAL ADVISER IN THE SALE 9402160146 940216 CHUBB AFTER QUAKE CLAIMS WARREN NJ CHUBB CORP ESTIMATES THAT CLAIMS ON THE LOS ANGELES EARTHQUAKE AND JANUARY WINTER STORMS WILL REDUCE FIRSTQUARTER EARNINGS BY 81 MILLION OR 90 CENTS A SHARE THE INSURANCE COMPANY SAID CATASTROPHE LOSSES FOR THE PERIOD WILL TOTAL ABOUT 125 MILLION AFTER REINSURANCE RECOVERIES IN THE FIRST QUARTER OF 1993 CHUBB REPORTED OPERATING INCOME WHICH EXCLUDES CAPITAL GAINS OF 1458 MILLION OR 164 A SHARE 9402160145 940216 GLEASON VENTURE IN CHINA ROCHESTER NY GLEASON CORP SAID IT SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE TECHNICAL AND SERVICE COMPANY WITH CHINA NATIONAL AUTOMOTIVE INDUSTRY CORP THE JOINT VENTURE WOULD PROVIDE SERVICE AND TECHNICAL SUPPORT TO GLEASON'S MACHINES IN CHINA IN ADDITION THE JOINT VENTURE WOULD BE A NONEXCLUSIVE IMPORT AGENT FOR GLEASON EQUIPMENT GLEASON A MAKER OF GEAR PRODUCTION EQUIPMENT SAID STARTUP FOR THE VENTURE IS SCHEDULED FOR MID1994 9402160144 940216 WHO'S NEWS NINTENDO'S LINCOLN IS NAMED CHAIRMAN OF US UNIT AS MARKET SHARE SLIDES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL FACED WITH FALLING MARKET SHARE JAPAN'S NINTENDO CO ELEVATED THE SENIOR VICE PRESIDENT OF ITS STRUGGLING NINTENDO OF AMERICA UNIT TO A POWERSHARING ARRANGEMENT WITH THE UNIT'S PRESIDENT THE SENIOR VICE PRESIDENT HOWARD C LINCOLN 54 YEARS OLD WAS NAMED CHAIRMAN OF NINTENDO OF AMERICA AND ACCORDING TO NINTENDO OFFICIALS WILL SHARE CONTROL OVER THE REDMOND WASHBASED UNIT WITH ITS LONGTIME PRESIDENT MINORU ARAKAWA 47 PREVIOUSLY MR ARAKAWA WAS THE SOLE MEMBER OF NINTENDO OF AMERICA'S BOARD WHICH NOW CONSISTS OF HIMSELF AND MR LINCOLN THE ACTION ANNOUNCED BY MR ARAKAWA'S FATHERINLAW NINTENDO CO PRESIDENT HIROSHI YAMAUCHI COMES AFTER LATEST MARKET RESEARCH FIGURES SHOW NINTENDO TRAILING ARCHRIVAL SEGA OF AMERICA INC THE REDWOOD CITY CALIF UNIT OF JAPAN'S SEGA ENTERPRISES LTD BY A WIDENING MARGIN IN THE ALLIMPORTANT MARKET FOR SALES OF 16BIT GAME PLAYERS ACCORDING TO NPD GROUP INC'S TOY RETAIL SALES TRACKING SERVICE SEGA CAPTURED 57 OF THE US'S 16BIT MARKET LAST YEAR COMPARED WITH 43 FOR NINTENDO SEGA'S LEAD ADVANCED TO NEARLY TWOTHIRDS OF SALES DURING THE CHRISTMAS SEASON THIS IS AN ASTOUNDING DECLINE FOR NINTENDO WHICH VIRTUALLY MONOPOLIZED THE US'S 6 BILLION VIDEOGAME MARKET AS RECENTLY AS THREE YEARS AGO AND ANALYSTS CREDIT SEGA'S AGGRESSIVE MARKETING ALONG WITH SOME KEY NINTENDO MISTAKES FOR THE SHIFT IN MOMENTUM WHILE MR ARAKAWA IS CREDITED BY ANALYSTS FOR HAVING DIRECTED NINTENDO INTO A VIDEOGAME POWERHOUSE DURING HIS 14 YEARS AT THE HELM OF THE US SUBSIDIARY THEY SAY HE ERRED BY NOT PRICING HIS 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM GAMES COMPETITIVELY ENOUGH AND BY NOT MATCHING A SEGA MARKETING BLITZ THAT PORTRAYED SEGA AS THE COOLER HIPPER ALTERNATIVE TO NINTENDO BANKING ON A TURNAROUND WITH ITS UPCOMING NEW PLAYER A 64BIT MACHINE CODENAMED PROJECT REALITY THAT IS DUE TO HIT ARCADES IN THE FALL NINTENDO OFFICIALS SAID MR YAMAUCHI ELEVATED MR LINCOLN AN 11YEAR VETERAN OF THE COMPANY TO HELP DIRECT THE UNIT'S INTENSIFIED EFFORTS TO REGAIN SHARE I THINK MR YAMAUCHI HAS BEEN IMPRESSED WITH HOWARD'S ABILITY TO PROVIDE DIRECTION SAID PERRIN KAPLAN A NINTENDO SPOKESWOMAN HOW MUCH AUTHORITY MR LINCOLN WILL HAVE REMAINS TO BE SEEN GIVEN THE IDIOSYNCRASIES OF JAPANESE CORPORATIONS I DON'T KNOW IF HE MR ARAKAWA IS WILLING TO DO SOMETHING WHICH NORMALLY YOU WOULDN'T EXPECT JAPANESE TO DO WHICH IS TO SAY I NEED HELP' SAID LEE ISGUR ANALYST FOR VOLPE WELTY & CO IN SAN FRANCISCO IT MR LINCOLN'S APPOINTMENT TELLS ME THEY KNOW THEY HAVE TO DO SOMETHING BUT WE HAVE TO WATCH FOR FOLLOWTHROUGH IN A STATEMENT MR YAMAUCHI SAID THIS APPOINTMENT REFLECTS MY GREAT CONFIDENCE IN MR LINCOLN'S ABILITY TO WORK WITH MR ARAKAWA IN THE OVERALL MANAGEMENT OF NINTENDO OF AMERICA MESSRS LINCOLN AND ARAKAWA WHO ARE KNOWN TO BE GOOD FRIENDS WEREN'T AVAILABLE FOR COMMENT IN A STATEMENT MR ARAKAWA SAID I WELCOME THIS PROMOTION OF MR LINCOLN IT IS WELLDESERVED AS PART OF NINTENDO'S PLAN TO REGAIN SHARE THE COMPANY SAID IT WOULD EMBARK ON A RECORD 185 MILLION MARKETING CAMPAIGN THIS YEAR 20 MILLION HIGHER THAN FOR LAST YEAR THAT WILL INCLUDE ITS FIRSTEVER ADVERTISING IN VIDEOGAME MAGAZINES SUCH AS GAMEPRO AND ELECTRONIC GAMING MONTHLY THE COMPANY SAID RETAILERS WILL ALSO BEGIN INCLUDING A FREE GAME WITH PURCHASES OF THE SUPER NINTENDO ENTERTAINMENT SYSTEM DURING APRIL AND MAY IN ADDITION NINTENDO HAS BEEN OFFERING RETAILERS 20 REBATES ON SALES OF EACH 16BIT PLAYER SINCE FEB 1 ENABLING THE STORES TO DROP PRICES TO COMPETE WITH SEGA THE REBATES WILL CONTINUE THROUGH APRIL ALL THIS IS DESIGNED TO REBUILD MOMENTUM AND ASSURE OURSELVES THAT 1993 IS ONLY AN UNPLEASANT MEMORY SAID GEORGE HARRISON NINTENDO'S DIRECTOR OF MARKETING AND CORPORATE COMMUNICATIONS 9402160143 940216 A CLOUDY ISSUE WILL ATM USERS BE CONFUSED BY A CAR CALLED CIRRUS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL ASK DANIEL BAUER IF HE WANTS TO BUY A CHRYSLER CIRRUS AND THE QUESTION IS MET WITH AN AWKWARD SILENCE A 45YEAROLD TOYOTA CAMRY DRIVER MR BAUER FITS THE DEMOGRAPHIC PROFILE FOR PROSPECTIVE BUYERS OF THE CIRRUS CHRYSLER'S FORTHCOMING CURVY SEDAN BUT HIS JOB AS SENIOR VICE PRESIDENT MARKETING FOR MASTERCARD'S CIRRUS ATM NETWORK PREVENTS HIM FROM BEING VERY ENTHUSIASTIC ABOUT THE CHRYSLER PRODUCT IN FACT HE'S PEEVED HE AND HIS COLLEAGUES WORRY THAT IF THE CHRYSLER CIRRUS TURNS INTO ANOTHER EDSEL IT WILL REFLECT BADLY ON THEIR COMPANY THE CASH NETWORK HAS GOTTEN ITS LAWYERS INVOLVED AND IS ASKING THE AUTO MAKER TO CHANGE THE NAME OF THE NEW SEDAN BUT CHRYSLER IS HAPPY WITH ITS CLOUD THEME AND ISN'T ABOUT TO BACK DOWN IT'S PLANNING ON NAMING THE DODGE VERSION OF THE SAME SEDAN THE STRATUS THERE'S PRECEDENT ON THE CASH NETWORK'S SIDE BERETTA THE ITALIAN GUN MAKER FILED A 250 MILLION SUIT AGAINST GENERAL MOTORS CORP WHEN IT BEGAN SELLING BERETTA CARS GM ENDED UP KEEPING THE NAME BUT PAYING TO SETTLE THE CASE BUT CHRYSLER PREFERS ANOTHER PRECEDENT MEAD DATA CENTRAL'S LEGAL RESEARCH OPERATION LEXIS LOST A SUIT AIMING TO STOP TOYOTA MOTOR CO FROM SELLING LEXUS SEDANS LEXIS LOST IN PART BECAUSE IT IS HARD TO CONFUSE THE PRODUCTS SAYS ROGER SCHECHTER A PROFESSOR AT THE GEORGE WASHINGTON UNIVERSITY LAW SCHOOL AT LEAST GUNS AND CARS ARE BOTH HIGHTECH METAL PRODUCTS MR SCHECHTER SAYS MEAD NEVER CAME FORWARD WITH A STRAIGHT FACE AND ARGUED THAT SOMEBODY OUT SHOPPING FOR A 40000 CAR WOULD END UP WITH A LEGAL PRINTOUT BY MISTAKE HE SAYS AND CONSUMERS WON'T CONFUSE SEDANS AND CASH MACHINES EITHER HE SAYS BUT MR BAUER SAYS THE PROBLEM IS DILUTION YOU WANT TO CONTROL THE DESTINY OF A BRAND NOT HAVE ANOTHER COMPANY DO IT MR BAUER SAYS IN OTHER WORDS YOU DON'T WANT AN UNHAPPY CIRRUS CAR OWNER TO SLICE UP HIS CASH CARD IN REVENGE CHRYSLER'S REAL PROBLEM MAY HAVE NOTHING TO DO WITH A POTENTIAL LAWSUIT AFTER IT INTRODUCES THE CIRRUS AND ALSO THE DODGE STRATUS CHRYSLER PLANS ON LAUNCHING A PLYMOUTH VERSION AND THERE AREN'T TOO MANY CLOUD NAMES LEFT WOULD ANYBODY REALLY WANT TO BUY A NIMBUS AND IF CHRYSLER LAUNCHES A STORMY CUMULONIMBUS WOULD IT THROW IN THE CLIMATE CONTROL FOR FREE 9402160142 940216 TECHNOLOGY ADVANCED POLYMER SYSTEMS INC REDWOOD CITY CALIF ADVANCED POLYMER SYSTEMS INC SAID IT HAS NEARLY COMPLETED FINAL PHASE III STUDIES ON ITS PROZONE SUN PROTECTANT PRODUCT AND EXPECTS TO FILE A NEW DRUG APPLICATION IN THE SECOND HALF OF THIS YEAR ADVANCED POLYMER SAID IT HOPES TO POSITION THE PRODUCT IN BOTH OVERTHECOUNTER AND PRESCRIPTION FORMATS AS ONE THAT OFFERS GREATER PROTECTION AGAINST MELANOMA THAN OTHER PRODUCTS ADVANCED POLYMER SYSTEMS INC REDWOOD CITY CALIF SAID IT EXPECTS TO FILE A NEW DRUG APPLICATION FOR ITS PROZONE SUN PROTECTANT PRODUCT IN THE SECOND QUARTER AN ARTICLE WEDNESDAY INCORRECTLY SAID ADVANCED POLYMER WOULD FILE AN APPLICATION IN THE SECOND HALF OF THIS YEAR 9402160141 940216 AK STEEL EMPLOYEES SEEK CLOUT' VIA UNION UNITED STEELWORKERS MIDDLETOWN OHIO THE UNITED STEELWORKERS OF AMERICA FILED A PETITION WITH THE NATIONAL LABOR RELATIONS BOARD SEEKING A REPRESENTATION VOTE AMONG WORKERS AT AN AK STEEL HOLDING CORP PLANT HERE THE PLANT WHICH HAS BEEN REPRESENTED BY AN INDEPENDENT UNION FOR SEVERAL DECADES EMPLOYS ABOUT 3500 WORKERS THE VOTE WAS ENDORSED BY THE INDEPENDENT UNION'S EXECUTIVE COMMITTEE THE COMPANY HAS CHANGED SAID ED SHELLEY PRESIDENT OF THE INDEPENDENT UNION THEY'RE NOT THE SAME COMPANY WE'VE BEEN DEALING WITH THE LAST 50 YEARS MR SHELLEY ADDED THAT THE WORKERS REQUIRED THE UNITED STEELWORKERS' CLOUT TO WIN A CONTRACT ON PAR WITH THE INDUSTRY THE INDEPENDENT UNION'S CURRENT CONTRACT WHICH PRECLUDES A LOCKOUT OR STRIKE EXPIRES FEB 28 ACCORDING TO AK STEEL MANAGEMENT AND THE UNION ARE CURRENTLY BEFORE ARBITRATORS THE UNION'S PETITION COMES AT A CRUCIAL TIME FOR AK STEEL FORMERLY ARMCO STEEL CO THE 5050 JOINT VENTURE BETWEEN ARMCO INC AND KAWASAKI STEEL CORP RECENTLY FILED FOR AN INITIAL PUBLIC OFFERING OF STOCK AND DEBT WITH THE SECURITIES AND EXCHANGE COMMISSION THAT COULD RAISE ABOUT 610 MILLION IN EQUITY AND ABOUT 275 MILLION IN DEBT 9402160140 940216 INTERNATIONAL GECALSTHOM UNIT'S CONTRACT PARIS EUROPEAN GAS TURBINES SAID IT RECEIVED A CONTRACT TO PROVIDE 500MEGAWATT TURBINES TO MALAYSIA'S POWERTEK WHICH IS BUILDING A POWER PLANT IN MALAYSIA THE VALUE OF THE CONTRACT WASN'T DISCLOSED EUROPEAN GAS IS A UNIT OF ANGLOFRENCH INDUSTRIAL GROUP GECALSTHOM WHICH IS A JOINT VENTURE BETWEEN FRANCE'S ALCATELALSTHOM SA AND THE UNITED KINGDOM'S GENERAL ELECTRIC CO CEGELEC A UNIT OF ALCATELALSTHOM WILL SUPPLY THE TRANSMISSION LINES FROM THE PLANT AND HIGHVOLTAGE SUBSTATIONS ZELLECO OF MALAYSIA WILL PERFORM THE CIVILENGINEERING WORK 9402160139 940216 WHO'S NEWS FIRST CASH INC FIRST CASH INC ARLINGTON TEXAS ALAN BARRON 33 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS PAWN SHOP OPERATOR FILLING A POSITION THAT HAS BEEN VACANT SINCE PAUL EDGE 51 LEFT IN APRIL 1993 MR BARRON WAS PREVIOUSLY CHIEF FINANCIAL OFFICER OF AMERICAN PAWN & JEWELRY INC 9402160138 940216 KELSO TO RETIRE EARLY FROM NAVY CITING TAILHOOK BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ADM FRANK KELSO TRYING TO CLOSE THE BOOKS ON THE NAVY'S TAILHOOK SCANDAL SAID HE WOULD LEAVE HIS POST AS CHIEF OF NAVAL OPERATIONS AND RETIRE TWO MONTHS EARLY AT THE END OF APRIL I MADE THIS DECISION BECAUSE I CLEARLY HAVE BECOME THE LIGHTNING ROD FOR TAILHOOK HE TOLD REPORTERS IN HIS OFFICE THE MOST LIKELY SUCCESSOR TO ADM KELSO AS THE NAVY'S TOP OFFICER IS ADM JEREMY MIKE BOORDA WHO IS COMMANDER OF THE NORTH ATLANTIC TREATY ORGANIZATION'S SOUTHERN FLANK IN THAT JOB HE HAS BEEN INTIMATELY INVOLVED IN NATO PLANNING FOR POSSIBLE AIR STRIKES IN BOSNIA THE EXPECTED PROMOTION OF ADM BOORDA WHO ENLISTED IN THE NAVY AS A TEENAGER ISN'T LIKELY TO RESULT IN MAJOR CHANGES IN THE SEA SERVICE UNDER THE LEADERSHIP OF THE SOFTSPOKEN AVUNCULAR ADM KELSO THE MOST TRADITIONLADEN OF US MILITARY SERVICES HAS WON PLAUDITS FOR THE SPEED WITH WHICH IT HAS ADJUSTED TO THE POSTCOLD WAR WORLD PARTLY BECAUSE OF THIS FLEXIBILITY THE NAVY DEPARTMENT WHICH INCLUDES THE MARINE CORPS WAS THE BIG WINNER IN LAST YEAR'S BOTTOMUP REVIEW OF HOW TO RESHAPE THE MILITARY TO THE CHANGED WORLD SITUATION THE NAVY IS RETAINING 12 AIRCRAFT CARRIERS SOMETHING PRESIDENT CLINTON HAD OPPOSED AS A CANDIDATE AND IS GETTING NEW AIRPLANES AND A NEW CARRIER AT A TIME WHEN THE ARMY IS BUYING NO NEW TANKS AND THE AIR FORCE NO NEW FIGHTERS THE NAVY HAS BEEN SLOWER TO ADJUST TO SOCIAL CHANGES IN THE US BUT PARTLY SPURRED BY THE TAILHOOK SCANDAL IT MOVED QUICKLY THIS YEAR TO LET WOMEN SERVE AS FIGHTER PILOTS AND ON THE CREWS OF COMBAT SHIPS TAILHOOK WAS A WATERSHED EVENT THAT HAS BROUGHT ABOUT CULTURAL CHANGE ADM KELSO SAID LAST YEAR THE TAILHOOK SCANDAL GREW OUT OF A 1991 NAVAL AVIATORS' CONVENTION IN LAS VEGAS AT WHICH SCORES OF OFFICERS ALLEGEDLY WERE INVOLVED IN LEWD BEHAVIOR INDECENT EXPOSURE AND OTHER OFFENSES THE DEFENSE DEPARTMENT'S INSPECTOR GENERAL SUBSEQUENTLY ACCUSED JUNIOR OFFICERS OF MAKING FALSE STATEMENTS AND SENIOR OFFICERS OF MISHANDLING THE INVESTIGATION ADM KELSO A 37YEAR NAVY VETERAN WHO HAS SERVED AS CHIEF OF NAVAL OPERATIONS SINCE JUNE 1990 SAID HE WASN'T PUSHED INTO LEAVING MY RETIREMENT WASN'T REQUESTED BY ANYONE HE SAID YET STATEMENTS ISSUED BY DEFENSE SECRETARY WILLIAM PERRY AND NAVY SECRETARY JOHN DALTON HAD AN AIR OF RELIEF TO THEM WITH MR DALTON SAYING THAT THE ADMIRAL HAD ACTED WITH THE BEST INTERESTS OF THE UNITED STATES NAVY IN MIND 9402160137 940216 CITICORP IS FREED OF STRICT SUPERVISION ANALYSTS EXPECT DIVIDEND RESUMPTION BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BANK REGULATORS AGREED TO END THEIR STRICT SUPERVISION OF CITICORP'S OPERATIONS SIGNALING THE BANKING GIANT'S RECOVERY FROM THE REALESTATE SLUMP OF THE EARLY 1990S THE MOVE WHICH HAD BEEN EXPECTED ALLOWS CITICORP TO MANAGE ITS CAPITAL WITHOUT PRIOR APPROVAL FROM REGULATORS ANALYSTS PREDICTED THAT THE BANK WILL SOON REINSTATE ITS DIVIDEND WHICH WAS SUSPENDED IN OCTOBER 1991 WHEN CITICORP WAS BURDENED WITH BILLIONS OF DOLLARS OF BAD LOANS THE REGULATORY CONTROLS WERE IMPOSED IN FEBRUARY 1992 IN A SIGN THAT CITICORP'S LOAN PROBLEMS WERE WORSE THAN MOST BANKS' SINCE THEN THE BANK HAS SLASHED COSTS AND SOLD ASSETS LOW INTEREST RATES ALSO HAVE HELPED LAST YEAR CITICORP HAD RECORD EARNINGS OF 22 BILLION UP FROM 722 MILLION IN 1992 THE LIFTING OF REGULATORY CONTROLS WAS ANNOUNCED YESTERDAY AFTER A CITICORP BOARD MEETING CITICORP SAID THE MOVE BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE FEDERAL RESERVE BANK OF NEW YORK WAS TAKEN IN CONJUNCTION WITH RECENTLY COMPLETED EXAMINATIONS CITICORP NOW WILL BE SUBJECT TO THE NORMAL REGULATORY RULES THAT APPLY TO ALL BANKS IT'S A SIGNAL THAT THEY'RE REGAINING CONTROL OF THEIR OWN DESTINY SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO HE EXPECTS THE COMPANY TO REINSTATE A 20CENTASHARE QUARTERLY DIVIDEND AT THE ANNUAL MEETING ON APRIL 19 THE DAY AFTER THE COMPANY'S NEXT DIRECTORS' MEETING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CITICORP'S SHARES CLOSED UNCHANGED AT 4075 ANALYSTS SAID THAT THE REGULATORS' MOVE WAS EXPECTED AND THAT BANK STOCKS IN GENERAL HAVE BEEN WEAK SINCE INTEREST RATES BEGAN CREEPING UP RECENTLY ALTHOUGH CITICORP'S FINANCIAL RECOVERY IS NEARLY COMPLETE THE COMPANY STILL FACES A TOUGH BANKING ENVIRONMENT REVENUE IS SCARCE AND COMPETITION IS FIERCE IN CREDIT CARDS A MARKET THAT CITICORP ONCE DOMINATED THE BANK IS ALSO MAKING ANOTHER BIG ATTEMPT TO CUT COSTS IT HAS ALREADY BEGUN LAYING OFF EXECUTIVES IN ITS WHOLESALE BANKING OPERATIONS AND IT IS LOOKING AT ITS US RETAIL OPERATIONS FOR WAYS TO REDUCE EXPENSES UNDER ITS NEW SENIOR EXECUTIVE VICE PRESIDENT CHRISTOPHER STEFFEN MR STEFFEN WHO MET WITH ANALYSTS FOR THE FIRST TIME THURSDAY IS ALSO ATTEMPTING TO MEASURE CITICORP'S OPERATIONS AGAINST OTHER BANKS' SOCALLED BENCHMARKING IS COMMON NOW IN THE BUSINESS WORLD BUT FOR CITICORP TO LOOK AT OTHERS AS A MODEL IS A MAJOR DEPARTURE FOR THE BANK WHICH TRADITIONALLY HAS CONSIDERED ITSELF SUPERIOR TO ITS RIVALS 9402160136 940216 KENTUCKY COURT APPROVES PLAN NEW YORK BANKERS TRUST NEW YORK CORP SAID A KENTUCKY STATE COURT APPROVED A PLAN TO SELL ABOUT 265 MILLION BOOK VALUE OF REAL ESTATE ASSETS HELD BY KENTUCKY CENTRAL LIFE INSURANCE CO A FAILED INSURER KENTUCKY INSURANCE REGULATORS RETAINED BANKERS TRUST AND CREAMER REALTY CONSULTANTS LAST YEAR TO STABILIZE AND MAXIMIZE THE ECONOMIC VALUE OF THE FAILED INSURER'S PORTFOLIO BANKERS TRUST SAID IT WOULD BEGIN MARKETING THE PORTFOLIO WHICH REPRESENTS THE BULK OF THE INSURER'S REAL ESTATE ASSETS IN THE NEXT FEW WEEKS BANKERS TRUST SAID IT PLANS TO BREAK DOWN THE PORTFOLIO INTO POOLS RANGING IN SIZE FROM 50 MILLION TO 80 MILLION IN BOOK VALUE 9402160135 940216 EXPLORATION CO OF LOUISIANA LAFAYETTE LA EXPLORATION CO OF LOUISIANA INC SAID IT SUCCESSFULLY COMPLETED A NATURAL GAS WELL IN SOUTH TEXAS THE OIL AND NATURAL GAS COMPANY SAID THE RUFINO & JOSEFA LOPEZ NO 3 WELL TESTED AT A RATE OF 45 MILLION CUBIC FEET OF GAS A DAY FROM DEPTHS OF BETWEEN 15150 AND 15320 FEET A SPOKESMAN FOR THE COMPANY SAID THE WELL IN THE BERRY R COX FIELD IN JIM HOGG COUNTY WILL BEGIN PRODUCING IN ABOUT 30 DAYS EXPLORATION CO WHICH OPERATES THE WELL HOLDS A 5375 WORKING INTEREST IN IT COLUMBUS ENERGY CORP HAS A 21 WORKING INTEREST SHEFFIELD EXPLORATION CO HOLDS A 125 INTEREST AND THE REMAINING INTEREST IS HELD BY PRIVATE INVESTORS 9402160134 940216 INTERNATIONAL SHELL MITSUBISHI PETROLEUM PLAN TOKYO JAPAN'S MITSUBISHI PETROCHEMICAL CO AND THE ROYAL DUTCH/SHELL GROUP ARE FORMING A PETROCHEMICAL JOINT VENTURE IN SINGAPORE A SPOKESMAN FOR THE JAPANESE FIRM SAID THE PARTNERS PLAN TO BUILD A 310000TONAYEAR STYRENEMONOMER UNIT AND A 140000TONAYEAR PROPYLENEOXIDE UNIT ON SERAYA ISLAND OFF THE COAST OF SINGAPORE THE COST OF THE PROJECT IS ESTIMATED AT 51 BILLION YEN 4973 MILLION CONSTRUCTION WILL START IN MARCH WITH THE COMPLETION TARGETED FOR THE SPRING OF 1997 THE SHELL GROUP HAS A 70 STAKE IN THE SERAYA CHEMICALS SINGAPORE PTE LTD WHILE MITSUBISHI HOLDS 30 9402160133 940216 MACLEAN HUNTER BOARD REJECTS OFFER FOR SHARES ROGERS COMMUNICATIONS' BID CALLED 'INADEQUATE' AS OPTIONS ARE STUDIED BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO MACLEAN HUNTER LTD SAID ITS BOARD REJECTED AS INADEQUATE THE 279 BILLION CANADIAN DOLLAR US207 BILLION OFFER BY ROGERS COMMUNICATIONS INC TO ACQUIRE ALL THE SHARES OF MACLEAN HUNTER IT DOESN'T ALREADY OWN THE TORONTOBASED CABLE TELEVISION PRINTING AND PUBLISHING CONCERN SAID IT IS REVIEWING A RANGE OF ALTERNATIVES TO ROGERS'S C17 US13 A SHARE BID INCLUDING A RECAPITALIZATION OF THE COMPANY AS A WHOLE THE SALE OF ITS CANADIAN CABLE TELEVISION ASSETS AND THE FORMATION OF PARTNERSHIPS WITH THIRD PARTIES CLEARLY WE COULD BE LOOKING AT OPTIONS WHICH WOULD LEAD TO A FAIRLY LARGE DISTRIBUTION OF CASH TO OUR SHAREHOLDERS SAID ROBERT FURSE CHIEF FINANCIAL OFFICER OF MACLEAN HUNTER OUR BELIEF IS THAT THE BID REPRESENTS INADEQUATE VALUE AND THAT WE COULD REALIZE MORE FOR SHAREHOLDERS BY PURSUING THESE OPTIONS WHETHER OR NOT ROGERS IS SUCCESSFUL IN ITS BID MACLEAN HUNTER'S US CABLE ASSETS WILL BE UP FOR SALE ON TOP OF ITS C17 A SHARE CASH BID ROGERS IS OFFERING MACLEAN HUNTER SHAREHOLDERS ONE PARTICIPATION RIGHT WHICH WILL GIVE THEM THE BULK OF ANY NET PROCEEDS FROM SUCH A SALE IN EXCESS OF C15 BILLION BUT MACLEAN HUNTER NOW APPEARS TO BE WILLING TO SELL MORE THAN THESE ASSETS WHICH IT HAD EARLIER IDENTIFIED AS NOT CORE HOLDINGS SPECIFICALLY MR FURSE SAID THE COMPANY COULD AUCTION OFF THE CANADIAN CABLE HOLDINGS THE ASSETS IN WHICH ROGERS IS MOST INTERESTED IT COULD ALSO SPIN THOSE HOLDINGS OFF TO SHAREHOLDERS AND MAY SEEK TO SELL PART INTERESTS IN ITS PUBLISHING VENTURES IN EXCHANGE FOR CASH THAT COULD BE DISTRIBUTED TO SHAREHOLDERS ALSO UP FOR CONSIDERATION ARE A LARGESCALE SHARE BUYBACK OR A SPECIAL DIVIDEND TO SHAREHOLDERS EITHER SUBSEQUENT TO OR AHEAD OF A MAJOR ASSET SALE MR FURSE SAID HE DECLINED TO GIVE FURTHER DETAILS SAYING THAT THE BOARD'S REVIEW IS IN ITS EARLY STAGES ANALYSTS ARE DIVIDED ON WHETHER OR NOT MACLEAN HUNTER COULD REALIZE IN EXCESS OF THE C17 A SHARE OFFERED BY ROGERS FOR ITS SHAREHOLDERS WITH THESE STRATEGIES I PUT THE MAXIMUM VALUE OF THESE ASSETS AT C1670 A SHARE WITHOUT A TAKEOVER BID SAID CARLA LARSON AN ANALYST AT BUNTING WARBURG INC IN TORONTO THAT ESTIMATE SHE SAYS ASCRIBES TOP MARKET VALUES TO MACLEAN HUNTER'S PRINTING AND PUBLISHING ASSETS AS WELL AS TO ITS STRATEGICALLY IMPORTANT CABLE HOLDINGS BOTH MS LARSON AND BARRY GRUMAN AN ANALYST WITH FIRST MARATHON SECURITIES IN MONTREAL BELIEVE MACLEAN HUNTER WANTS ROGERS TO RAISE ITS BID FOR STRATEGIC REASONS THE COMPANY COULD BE WORTH MORE TO ROGERS THAN THE C17 A SHARE IT HAS OFFERED OR THAN ANY OTHER BIDDER WOULD BE WILLING TO PAY MR GRUMAN SAID ALTHOUGH EDWARD ROGERS PRESIDENT AND CHIEF EXECUTIVE OF ROGERS WAS ADAMANT THAT NO ONE COULD PERSUADE HIM TO RAISE HIS BID THE OFFERING CIRCULAR MAKES PASSING REFERENCE TO THE POSSIBILITY OF SUCH A PRICE INCREASE MS LARSON SAYS ROGERS COULD AFFORD TO PAY C18 A SHARE FOR MACLEAN HUNTER ELSEWHERE BUT IF MR ROGERS STICKS TO HIS GUNS MACLEAN HUNTER IS WELLPOSITIONED TO FOLLOW THROUGH WITH ITS PLANS WITH ONLY C260 MILLION US1922 MILLION OF DEBT NET OF CASH ANALYSTS SAY IT COULD RAISE AS MUCH AS C750 MILLION FROM CANADIAN BANKS OR MORE FROM US INSTITUTIONAL LENDERS TO FINANCE A SHARE BUYBACK OR SPECIAL DIVIDEND THE TAKEOVER BATTLE HAS BROUGHT EXPRESSIONS OF INTEREST IN A NUMBER OF MACLEAN HUNTER ASSETS FROM A RANGE OF CANADIAN PUBLISHING AND BROADCASTING CONCERNS MR FURSE SAYS THE COMPANY COULD PURSUE THOSE HE ADDED A FINAL DEFENSE WOULD BE MACLEAN HUNTER'S SHAREHOLDERRIGHTS PLAN WHICH PROVIDES FOR THE ISSUANCE OF A LARGE AMOUNT OF STOCK CHEAPLY TO SHAREHOLDERS IN THE EVENT OF A TAKEOVER BATTLE SUCH AS THE ONE THAT IS EMERGING MR FURSE SAYS IT IS TOO EARLY TO SAY WHETHER MACLEAN HUNTER WILL MAKE USE OF THIS POISON PILL BUT THE COMPANY HAS REFUSED TO CANCEL THE PLAN AS ROGERS HAS REQUESTED THERE'S AN ANTIDOTE TO THE POISON PILL AND THAT'S A PERMITTED BID MR FURSE SAID ROGERS OPTED NOT TO MAKE WHAT THE PLAN DESCRIBES AS A PERMITTED BID SINCE THE OFFER WOULD HAVE HAD TO REMAIN OPEN FOR 120 DAYS TO ALLOW THE BOARD TO STUDY ALTERNATIVES ROGERS'S OFFER EXPIRES MARCH 15 IN TORONTO STOCK EXCHANGE TRADING YESTERDAY SHARES OF MACLEAN HUNTER ENDED THE DAY AT C17 UNCHANGED CLASS B SHARES OF ROGERS A TORONTOBASED TELECOMMUNICATIONS CONCERN CLOSED AT C2175 UP 135 CANADIAN CENTS 9402160132 940216 SMALL STOCK FOCUS MERGER NEWS INVOLVING SOFTWARE FIRMS HMOS HELP MARKET SCORE BROAD GAINS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK MERGER NEWS DROVE SMALLCAP STOCK PRICES HIGHER WITH STABLE BOND PRICES AND A RISE IN THE DOLLAR AGAINST THE YEN GIVING AN ADDED PUSH THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES JUMPED 134 OR 051 TO 26453 WHILE THE NASDAQ COMPOSITE INDEX ADDED 467 OR 059 TO END AT 79012 ADVANCING NASDAQ ISSUES OUTRAN DECLINERS 1644 TO 1439 ON NASDAQ NATIONAL MARKET VOLUME OF 245851500 SHARES AND TOTAL VOLUME OF 296404600 ON MONDAY NATIONAL MARKET VOLUME REACHED 226239800 SHARES WHILE TOTAL VOLUME WAS 282513300 THE DOLLAR CLIMBED AGAINST THE YEN AFTER THE US CONFIRMED IT WOULD TAKE TRADE ACTIONS AGAINST JAPAN ON MONDAY A TUMBLE IN THE DOLLAR AGAINST THE JAPANESE CURRENCY AND HIGHER INTEREST RATES PUT PRESSURE ON EQUITIES ALTHOUGH SMALLER ISSUES HUNG ON TO POST MODERATE GAINS TIM GRAZIOSO VICE PRESIDENT AND MANAGER OF OVERTHECOUNTER TRADING AT CANTOR FITZGERALD SECURITIES LTD SAID HE NOTICED SEVERAL TRENDS YESTERDAY NOT ONLY ARE INVESTORS STARTING TO SNAP UP SMALLER ISSUES AFTER CONCENTRATING ON LARGE CYCLICAL STOCKS FOR WEEKS BUT SMALLER SOFTWARE AND HEALTH MAINTENANCE ORGANIZATION ISSUES ROSE FOLLOWING A TAKEOVER ANNOUNCEMENT IN EACH GROUP SOFTIMAGE A CANADIAN SOFTWARE CONCERN ROCKETED 6 1/8 OR 40 TO 21 1/4 ON NEWS IT WILL BE ACQUIRED BY MICROSOFT WHICH GAINED 5/8 TO 79 3/4 MICROSOFT REDMOND WASH PUT THE VALUE OF THE STOCK TRANSACTION AT ABOUT 130 MILLION HAMBRECHT & QUIST INC RAISED ITS RATING ON SOFTIMAGE TO BUY FROM HOLD ELSEWHERE IN THE GROUP MID ATLANTIC MEDICAL SERVICES ROCKVILLE MD SURGED 4 TO 36 7/8 COVENTRY NASHVILLE TENN JUMPED 3 5/8 TO 52 7/8 AND MAXICARE HEALTH PLANS LOS ANGELES GAINED 1 TO 12 5/8 MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER INC SAID THE MERGER NEWS SHOWCASES THE ATTRACTIVENESS OF SMALLER ISSUES IN THE 1980S MERGERS MOSTLY INVOLVED BIGCAP COMPANIES AND WERE DONE FOR FINANCIALENGINEERING REASONS MS FARRELL SAID BUT IN THE 1990S IT'S MOSTLY BIGCAP COMPANIES TAKING OVER SMALLER ONES AS STRATEGIC ACQUISITIONS THIS IS FURTHER EVIDENCE THAT SMALLCAP STOCKS ARE UNDERVALUED ALSO ON THE TAKEOVER FRONT SANDS REGENT CLIMBED 1 3/4 TO 13 3/4 AFTER SAYING IT REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE GULFSIDE CASINO INC FOR AN UNDISCLOSED AMOUNT OF CASH AND SANDS STOCK THE AGREEMENT INCLUDES THE ACQUISITION BY SANDS BASED IN RENO NEV OF GULFSIDE CASINO'S 60 PARTNERSHIP INTEREST IN THE COPA CASINO IN GULFPORT MISS AN INITIAL BUY RATING FROM PAINEWEBBER INC ANALYST EMANUEL GOLDMAN HELPED PUSH BROTHERS GOURMET COFFEES UP 2 3/4 TO 16 1/4 MR GOLDMAN CALLED THE STOCK OF THE BOCA RATON FLA COMPANY A HIGHLY UNDERVALUED SITUATION AND SAID HE EXPECTS BROTHERS GOURMET'S EARNINGS TO INCREASE 25 TO 30 ANNUALLY OPPENHEIMER & CO'S GARY CHIN BEGAN COVERAGE OF NATURE'S SUNSHINE PRODUCTS INC WITH AN ANALYST'S BUY RATING SENDING THE PROVO UTAH NUTRITIONAL PRODUCTS MAKER'S SHARES UP 1 1/8 TO 15 INTERNATIONAL THOROUGHBRED BREEDERS GOT A LIFT FROM IMPROVED EARNINGS RISING 1 5/16 TO 6 1/4 ON THE AMERICAN STOCK EXCHANGE THE CHERRY HILL NJ COMPANY REPORTED FISCAL SECONDQUARTER EARNINGS OF 19 CENTS A SHARE COMPARED WITH A LOSS OF ONE CENT A SHARE A YEAR EARLIER ALSO ON THE AMEX GELMAN SCIENCES ANN ARBOR MICH ROSE 1 1/4 TO 17 THE FILTRATION AND HEALTH PRODUCTS FIRM SAID FISCAL SECONDQUARTER SALES ROSE 15 TO 233 MILLION GELMAN ALSO FORECAST RECORD EARNINGS FOR THE QUARTER 9402160131 940216 HONDA'S ACCORDS CIVICS DETROIT HONDA MOTOR CO SAID IT HAS NOTIFIED 18 MILLION ACCORD AND CIVIC OWNERS OF AN ELECTRICAL GLITCH THAT MAY PREVENT THE CARS FROM STARTING AND IN RARE CASES CAUSE THEM TO STALL THE AUTO MAKER SAID ONE MILLION OF ITS 1988 THROUGH 1991 CIVICS AND 800000 OF ITS 1990 THROUGH 1991 ACCORDS ARE AFFECTED HONDA BEGAN NOTIFYING OWNERS LAST SUMMER AND COMPLETED ITS NOTIFICATION EFFORT IN JANUARY TWO ACCIDENTS HAVE OCCURRED AS A RESULT OF THE PROBLEM BUT THERE HAVE BEEN NO INJURIES THE ACCORD AND CIVIC ARE HONDA'S TOPSELLING CARS HONDA SAID THE IGNITER UNITS IN THE AFFECTED MODELS AREN'T DURABLE ENOUGH TO ENSURE CONSISTENT STARTING HONDA HAS NOTIFIED ALL OWNERS BY MAIL AND HAS INSTRUCTED THEM TO TAKE THEIR VEHICLES TO AREA DEALERSHIPS FOR FREE REPAIRS 9402160130 940216 TECHNOLOGY & HEALTH UNITED HEALTH PLANS TO ACQUIRE RAMSAYHMO BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL UNITED HEALTHCARE CORP CONTINUED ITS EXPANSIONIST DRIVE WITH A DEFINITIVE PACT TO ACQUIRE RAMSAYHMO INC FOR STOCK CURRENTLY VALUED AT 501 MILLION RAMSAYHMO BASED IN CORAL GABLES FLA OWNS AND OPERATES A 172000MEMBER HEALTHMAINTENANCE ORGANIZATION SERVING SOUTHERN FLORIDA UNITED HEALTHCARE BASED IN MINNEAPOLIS IS ONE OF THE NATION'S BIGGEST MANAGEDCARE ORGANIZATIONS OPERATING A NUMBER OF HMOS AND PREFERREDPROVIDER ORGANIZATIONS AMONG OTHER ACTIVITIES TERMS OF THE PACT CALL FOR RAMSAY HOLDERS TO EXCHANGE EACH OF THEIR SHARES FOR 067 UNITED HEALTHCARE SHARES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING UNITED HEALTHCARE CLOSED DOWN 625 CENTS TO 85 AT THAT PRICE THE TRANSACTION'S EXCHANGE RATIO WOULD GIVE RAMSAY HOLDERS STOCK VALUED AT 5595 FOR THEIR SHARES AFTER A MIDAFTERNOON TRADING HALT WAS LIFTED RAMSAY SHARES ROCKETED UP 9375 OR 20 TO CLOSE AT 5525 THE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS UNITED HEALTHCARE SAID THE COMPANY SAID IT EXPECTS THE TRANSACTION WHICH IS SUBJECT TO APPROVAL BY REGULATORS AND BY RAMSAY STOCKHOLDERS TO CLOSE IN MIDMAY UNITED HEALTHCARE CLEARLY HAS EMBARKED ON A GROWTHTHROUGHACQUISITION STRATEGY EARLY IN 1993 IT PAID 100 MILLION TO ACQUIRE CLOSELY HELD WESTERN OHIO HEALTH CARE CORP AND LATER LAST YEAR ISSUED SHARES THEN VALUED AT ABOUT 386 MILLION TO ACQUIRE HMO AMERICA INC OF CHICAGO MORE RECENTLY IT AGREED TO ACQUIRE CLOSELY HELD COMPLETE HEALTH SERVICES INC OF ALABAMA IN EXCHANGE FOR SHARES CURRENTLY VALUED AT 214 MILLION LAST MONTH IT ALSO ACQUIRED A 350EMPLOYEE TENNESSEE MEDICAL AND DISABILITY MANAGEMENT CONCERN TERMS WEREN'T DISCLOSED PUBLISHED REPORTS HAVE INDICATED IT HAS MADE OVERTURES TO ACQUIRE TAKECARE INC OF CONCORD CALIF WHICH RECENTLY SPURNED AN 800 MILLION BID FROM ANOTHER SUITOR BUT A UNITED HEALTHCARE SPOKESWOMAN DECLINED TO COMMENT YESTERDAY ON THAT ISSUE EXCLUDING ACQUISITIONS NOT YET CLOSED MEMBERSHIP IN THE HEALTH PLANS UNITED HEALTHCARE OWNS INCREASED 87 TO 15 MILLION IN THE 12 MONTHS ENDED JAN 31 ENROLLMENT IN THE PLANS IT OWNS AND MANAGES WAS 254 MILLION UP FROM 177 MILLION UNITED HEALTHCARE'S SHARES BOLSTERED BY INVESTORS' CONVICTION THAT HMOS WILL BENEFIT UNDER THE CLINTON ADMINISTRATION'S PLANNED HEALTHCARE COST CONTROLS HAVE MORE THAN DOUBLED FROM THEIR 40ASHARE LEVEL OF A YEAR AGO UNITED HEALTHCARE SAID IT CONSIDERS THE SOUTHEASTERN US AN ATTRACTIVE AREA FOR EXPANSION IN PART BECAUSE THE REGION HASN'T BEEN PENETRATED BY MANAGEDCARE SERVICES TO THE EXTENT THAT SOME OTHER AREAS HAVE FOR THE SIX MONTHS ENDED DEC 31 RAMSAYHMO'S NET ROSE 55 TO 77 MILLION OR 98 CENTS A SHARE ON REVENUE THAT INCREASED 33 TO 1658 MILLION 9402160129 940216 REVIEW & OUTLOOK EDITORIAL HOW GOVERNMENTS FALTER THE SEXSCANDAL STORIES JUST KEEP COMING AND COMING THERE IS A BIMBO ERUPTION ONE DAY A LURID REVELATION THE NEXT A TABLOID RUMOR AFTER THAT IT ALL ADDS UP TO A SERIES OF REMORSELESS BLOWS TO THE INTEGRITY OF THE GOVERNMENT NEEDLESS TO SAY WE'RE TALKING ABOUT THE BRITISH GOVERNMENT PRIME MINISTER JOHN MAJOR'S REGIME IS OFFERING ANY OTHER GOVERNMENTS THAT MIGHT WANT TO NOTICE A PRETTY GOOD EXAMPLE OF HOW TO BECOME UNDONE IN THE INFORMATION AGE FOR STARTERS THERE IS THE CREDIBILITY THRESHOLD AT SOME POINT THE GOVERNMENT CROSSES IT THEN ALL OF A SUDDEN IT SEEMS THAT EVERYONE IN THE MEDIA IS TREATING THE GOVERNMENT WITH LESS RESPECT EVEN THE CORNERS OF THE MEDIA THAT SHOULD BE ITS POLICY ALLIES MINOR STORIES WHICH OTHERWISE WOULD BUMP ALONG THE BOTTOM ARE BROUGHT TO THE TOP OF THE NEWSCASTS AS FURTHER EVIDENCE OF THE TROUBLE AT THE TOP THE GOVERNMENT TRIES TO GOVERN AND RESTORE ITS CREDIBILITY BUT IT CAN'T GET ANY TRACTION EVERY WEEK OR SO COMES ANOTHER REVELATION TO SEND IT DEEPER INTO THE MIRE THE SCANDALS DON'T HAVE TO BE PARTICULARLY IMPORTANT TAKE THIS WEEK'S UK SCANDAL INVOLVING A VERY JUNIOR MINISTER HARTLEY BOOTH WHO IS A MEMBER OF PARLIAMENT FROM MARGARET THATCHER'S OLD DISTRICT FINCHLEY MR BOOTH MET A 22YEAROLD ART STUDENT EMILY BARR OVER TEA LAST JANUARY SHE ASKED ABOUT HOW TO APPLY FOR GRANTS AND MENTIONED THAT SHE POSED NUDE FOR ART CLASSES FOR FIVE POUNDS AN HOUR ABOUT 750 AN HOUR MR BOOTH OFFERED TO HIRE HER FOR SLIGHTLY MORE AS A RESEARCHER FOR A BOOK HE WAS WRITING ON UNEMPLOYMENT MS BARR ATTENDED MEETINGS OF THE SOCIALIST WORKER'S PARTY BUT DEFENDED HER DECISION TO WORK FOR A CONSERVATIVE SAYING I REALLY LIKE TORY MPS SOME OF MY FRIENDS ARE HORRIFIED TO HEAR ME SAY THAT BUT THEY'RE VERY CHARMING THEY'RE ALSO EXTREMELY EASY TO MANIPULATE LAST WEEK MR BOOTH ADMITTED THAT HE HAD CUDDLED WITH MS BARR AND WRITTEN POETRY TO HER HE'S RESIGNED FROM THE GOVERNMENT THIS NORMALLY TRIVIAL BUT NOWSPLASHY STORY COMES ON THE HEELS OF REVELATIONS ABOUT TORY LOVE CHILDREN BEDSHARING ADULTERY AND THE PREVIOUS WEEK'S SCANDAL THE BIZARRE DEATH OF STEPHEN MILLIGAN MR MILLIGAN A PROMISING YOUNG GOVERNMENT MINISTER WAS FOUND DEAD IN HIS HOME WEARING NOTHING BUT WOMEN'S STOCKINGS ANALYSTS SPECULATE HE SUFFOCATED DURING AUTOEROTIC SEX SOMEHOW BRITAIN HAS WORKED ITSELF INTO A SOUR AND MASOCHISTIC MOOD THROUGHOUT MR MAJOR'S TERM IN OFFICE MRS THATCHER WAS LOVED OR HATED BUT NONETHELESS COMMANDED THE WORLD STAGE NOW THERE IS A GROWING SENSE THAT THE BRITISH ESTABLISHMENT IS DODDERING IT HAS REASSERTED ITSELF IN THE YEARS SINCE MRS THATCHER'S FALL BUT IT STILL SUFFERS FROM THE SAME TIRED MALADIES SHE TRIED TO COMBAT A LARGE PART OF THE CURRENT GOVERNMENT'S PROBLEM IS THAT IT OFTEN SEEMS TOO CLEVER BY HALF OR IS HABITUATED TO WHAT IN THE US MIGHT BE CALLED AN EXCESS OF SPIN CONTROL VERY EARLY ON FOR INSTANCE THE MAJOR GOVERNMENT BROKE RANKS WITH THE PRINCIPLED RIGHT DURING ITS SUPPORT OF THE MAASTRICHT TREATY BACKING THE TREATY WASN'T THE PROBLEM THAT WAS INTELLECTUALLY DEFENSIBLE BUT IT WAS THE SHIFTING SPINNING SLIPPERY WAY IT MANEUVERED THE TREATY THROUGH PARLIAMENT THAT DAMAGED ITS CREDIBILITY SIMILARLY BRITAIN'S FALL FROM THE EUROPEAN CURRENCY GRID WAS NOT IN ITSELF THE FAULT OF THE GOVERNMENT BRITAIN WAS CAUGHT BETWEEN THE DIVERGING MONETARY POLICIES OF GERMANY AND THE US BUT THEN MR MAJOR FIRED HIS LOYAL AND LONGSUFFERING CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT AN ACT THAT EARNED LITTLE RESPECT SINCE THEN THE STORY HAS BEEN SPIN AND MORE SPIN MR MAJOR HAS SOME SOUND INSTINCTS AND HE IS EVERYWHERE REGARDED AS AN HONORABLE MAN BUT WHERE IS THE STORYLINE A THATCHER OR REAGAN THRIVED WITH A SHARPLY DEFINED STORYLINE BUT THE MORE COMMON STRATEGY IN POLITICS TODAY IS TO SAND OFF THE EDGES MR MAJOR TRIED TO LAUNCH A CAMPAIGN BASED ON PRINCIPLE CALLED BACK TO BASICS IT WAS AN EFFORT TO HALT FAMILY BREAKDOWN BUT IT WAS CONVEYED INTO THE PUBLIC MIND AS AN INITIATIVE WITH NO CONVINCING INTELLECTUAL HEFT AN ANALOGY HERE MIGHT BE THE WHITE HOUSE'S ALLOFASUDDEN REKINDLED ENTHUSIASM FOR WELFARE REFORM IN BRITAIN THE GOVERNMENT'S MOST POTENT CRITICS NOW ARE THE JOURNALISTS ON ITS OWN SIDE THE RIGHT IN THE MEDIA AGE OR PERHAPS ANY AGE IT IS PROBABLY BETTER TO BE DESPISED BY YOUR FOES FOR REASONS OF YOUR OWN CHOOSING THAN TO BE PUMMELED OR ABANDONED BY YOUR ALLIES FOR LOSS OF PURPOSE 9402160128 940216 TECHNOLOGY & HEALTH DEMOCRATS' AD FOR HEALTHCARE REFORM DISTORTS GOVERNOR'S POSITION GOP SAYS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPUBLICANS CHARGED THAT A DEMOCRATIC TELEVISION COMMERCIAL TOUTING PRESIDENT CLINTON'S HEALTHCARE PROGRAM INTENTIONALLY DISTORTS COMMENTS BY A PROMINENT GOVERNOR REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR DEMANDED THAT THE DEMOCRATIC NATIONAL COMMITTEE RETRACT THE AD AND OFFER AN APOLOGY TO SOUTH CAROLINA GOV CARROLL CAMPBELL MR BARBOUR SAID THAT THE AD CONTAINS A TAPED COMMENT THAT HAS BEEN DOCTORED TO TOTALLY MISREPRESENT A STATEMENT MADE BY GOV CAMPBELL THE AD SHOWS BRIEF CLIPS OF FOUR REPUBLICAN POLITICIANS INCLUDING GOV CAMPBELL ASSERTING THAT THE NATION DOESN'T FACE A HEALTH CRISIS IT THEN CHARGES THAT REPUBLICANS JUST DON'T GET IT ON HEALTH CARE A TRANSCRIPT OF GOV CAMPBELL'S FULL REMARKS SHOWS HE WAS IN FACT MAKING A DIFFERENT AND MORE COMPLEX ARGUMENT THAN THE AD SUGGESTS IN AN INTERVIEW WITH TV HOST JOHN MCLAUGHLIN ON JAN 28 GOV CAMPBELL ACTUALLY SAID BUT NUMBER ONE YOU SHOULDN'T SAY THERE'S NOT A CRISIS THERE'S A CRISIS FOR PEOPLE THAT DON'T HAVE HEALTH CARE AND THERE IS A CRISIS IN THE FINANCING THERE'S NOT A CRISIS IN THE WHOLE MEDICAL SYSTEM OF AMERICA AND THERE'S A DIFFERENT INTERPRETATION IN RESPONSE DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM SAID WORDS BY GOV CAMPBELL USED IN THE AD CAME FROM THE FINAL SENTENCE IN THAT PASSAGE AND HELPED SHOW THAT DEMOCRATS AND REPUBLICANS HAVE FUNDAMENTALLY DIFFERENT INTERPRETATIONS AND APPROACHES WHEN IT COMES TO THE PROBLEMS FACING WORKING AMERICANS MR WILHELM CONTENDED IN A LETTER TO HIS GOP COUNTERPART THAT REPUBLICANS ARE ATTEMPTING TO DISTANCE THEMSELVES FROM THEIR POLITICAL STRATEGY THAT HAD AT ITS CORE DENYING A HEALTH CARE CRISIS EXISTS SEPARATELY HILLARY RODHAM CLINTON CALLED ON AN ASSOCIATION OF HEALTHMAINTENANCE ORGANIZATIONS TO LAUNCH AN ADVERTISING CAMPAIGN PROCLAIMING THE SUCCESSES OF MANAGED CARE IN WHICH NETWORKS OF DOCTORS AND HOSPITALS PROVIDE ALL NECESSARY MEDICAL CARE FOR A SET ANNUAL FEE THE CLINTON ADMINISTRATION HAS BEEN BESET BY CRITICISM THAT IT WANTS TO MOVE PEOPLE INTO HMOS AND OTHER MANAGEDCARE NETWORKS WHICH ARE GENERALLY CHEAPER THAN OTHER HEALTHINSURANCE PLANS BUT OFTEN PLACE LIMITATIONS ON THE DOCTORS PATIENTS CAN SEE THERE SHOULD BE IN MY VIEW ADS RUNNING THAT SHOW THE HIGH LEVEL OF SATISFACTION WITH HMOS MRS CLINTON TOLD A MEETING OF THE GROUP HEALTH ASSOCIATION OF AMERICA MEANWHILE THE NATION'S MOST PROMINENT ORGANIZATION OF RELIGIOUS CONSERVATIVES ANNOUNCED IT IS LAUNCHING ITS OWN CAMPAIGN AGAINST THE CLINTON PLAN THE CHRISTIAN COALITION SAID ITS 14 MILLION OFFENSIVE WILL INCLUDE RADIO SPOTS AIRING IN 40 CONGRESSIONAL DISTRICTS AND 18 STATES POSTCARDS DISTRIBUTED IN CHURCHES ADS IN DAILY NEWSPAPERS AND A DIRECTMAIL AND PHONE CAMPAIGN 9402160127 940216 TECHNOLOGY & HEALTH STUDY SHOWS EVEN THE WELLINSURED FAIL TO MEET IMMUNIZATIONRATE GOALS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL LOW VACCINATION RATES AREN'T JUST A PROBLEM OF THE POOR RELATIVELY AFFLUENT PARENTS WITH GOOD INSURANCE ALSO FAIL TO GET THEIR CHILDREN PROPERLY IMMUNIZED A STUDY OF A DRUG MAKER'S EMPLOYEES FOUND IN A STUDY OF 1500 EMPLOYEES OF JOHNSON & JOHNSON LESS THAN HALF THE EMPLOYEES' TWOYEAROLD CHILDREN HAD RECEIVED THE RECOMMENDED VACCINATIONS DESPITE HAVING INSURANCE THAT COVERED ALL OR MOST OF THE COST THE PARENTS BLAMED THEIR INABILITY TO TAKE TIME OFF FROM WORK AND THE WAIT TO SEE A PHYSICIAN AS THE BIGGEST IMPEDIMENTS TO GETTING THEIR CHILDREN VACCINATED THE FINDINGS MIRROR THE EXPERIENCE OF SOME HEALTH MAINTENANCE ORGANIZATIONS THAT OFFER FREE VACCINATIONS BUT STILL FALL FAR SHORT OF IMMUNIZATIONRATE GOALS EVEN UNDER GOOD CIRCUMSTANCES PAYING FOR VACCINES ALONE ISN'T ENOUGH TO GET ALL CHILDREN PROPERLY IMMUNIZED SAID JONATHAN E FIELDING THE LEAD RESEARCHER OF THE STUDY AND PROFESSOR OF HEALTH SERVICES AND PEDIATRICS AT UNIVERSITY OF CALIFORNIA AT LOS ANGELES DR FIELDING WAS EMPLOYED BY JOHNSON & JOHNSON AT THE TIME OF THE STUDY JOHNSON & JOHNSON A HEALTHCARE COMPANY BASED IN NEW BRUNSWICK NJ DOESN'T SELL VACCINES THE STUDY BUTTRESSES THE PHARMACEUTICAL INDUSTRY'S ARGUMENT THAT SOCIETAL BARRIERS SUCH AS INADEQUATE CLINIC HOURS OR INSUFFICIENT PUBLIC EDUCATION RATHER THAN VACCINE PRICES HAVE STOOD IN THE WAY OF UNIVERSAL VACCINATION DR FIELDING SAID THAT RECENTLY PASSED LEGISLATION PROVIDING GOVERNMENT FUNDING FOR VACCINES MAY IMPROVE IMMUNIZATION RATES BUT HE SAID WITHOUT IMPROVEMENTS IN THE DELIVERY SYSTEM FUNDING ALONE ISN'T ENOUGH TO REACH THE PUBLICHEALTH GOALS OF GETTING 90 OF PRESCHOOL CHILDREN FULLY IMMUNIZED THE STUDY'S RESULTS PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION SUGGEST IMPROVEMENTS IN IMMUNIZATION RATES WILL REQUIRE MORE FLEXIBILITY FROM EMPLOYERS AND PHYSICIANS AND BETTER EDUCATION OF PARENTS ABOUT VACCINE SCHEDULES ACCORDING TO THE RESEARCHERS IN THE STUDY FUNDED BY JOHNSON & JOHNSON 452 OF THE EMPLOYEES' CHILDREN HAD RECEIVED ALL THE RECOMMENDED IMMUNIZATIONS DIPHTHERIA TETANUS WHOOPING COUGH POLIO MEASLES MUMPS RUBELLA AND MENINGITIS BY THE AGE OF TWO BY SIX YEARS OF AGE 553 HAD RECEIVED ALL THEIR RECOMMENDED VACCINES THE STUDY WAS COMPLICATED BY THE NEWNESS OF THE MENINGITIS VACCINE AGAINST HAEMOPHILUS INFLUENZAE TYPE B HIB WHICH WAS INTRODUCED IN 1985 AND UNDERWENT CHANGES IN DOSAGE RECOMMENDATIONS IN 1990 BUT THE RESEARCHERS CLASSIFIED CHILDREN AS FULLY IMMUNIZED ACCORDING TO RECOMMENDATIONS IN PLACE AT THE TIME EXCLUDING THE HIB VACCINE ENTIRELY 651 OF TWO YEAR OLDS AND 703 OF SIX YEAR OLDS HAD RECEIVED ALL THEIR VACCINATIONS STILL BELOW THE NATIONAL GOAL OF 90 THE STUDY FOUND THAT CHILDREN WERE MORE LIKELY TO BE IMMUNIZED IF THEIR PARENTS WERE HIGHLY EDUCATED OR IN THE UPPER HALF OF PAY LEVELS AT THE COMPANY DR FIELDING ADDED THAT THE VACCINATION RATES AT JOHNSON & JOHNSON MIGHT BE HIGHER THAN AT OTHER COMPANIES BECAUSE THE HEALTHCARE COMPANY HAS BETTER INSURANCE COVERAGE AND A MORE HIGHLY EDUCATED AND STABLE WORK FORCE THAN MANY OTHER COMPANIES MOREOVER THE COMPANY ADVOCATES PREVENTIVE CARE THROUGH HEALTH PROMOTION AND EDUCATION PROGAMS FOR EMPLOYEES HE SAID 9402160126 940216 POLITICS & POLICY NORTH KOREA AGREES TO LET UN INSPECT 7 NUCLEAR PLANTS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NORTH KOREA AGREED TO ALLOW AN INTERNATIONAL INSPECTION OF SEVEN NUCLEAR PLANTS ENDING AT LEAST FOR NOW A SHOWDOWN WITH THE INTERNATIONAL COMMUNITY THE DECISION BY HARDLINE NORTH KOREA TO END ITS YEARLONG REFUSAL TO PERMIT INSPECTIONS BY THE INTERNATIONAL ATOMIC ENERGY AGENCY WON'T RESOLVE THE DEBATE OVER WHETHER PYONGYANG IS DEVELOPING NUCLEAR WEAPONS NORTH KOREA STILL WON'T PERMIT INSPECTIONS OF TWO OTHER SITES SUSPECTED OF POSSIBLE USE IN A NUCLEARWEAPONS PROGRAM FURTHERMORE THE AGREEMENT WON'T COMPLETELY RESOLVE THE QUESTION OF WHETHER NORTH KOREA ALREADY HAS DEVELOPED A NUCLEAR DEVICE PRESIDENT CLINTON SAID LAST WEEK THAT UNITED NATIONS ECONOMIC SANCTIONS WERE ONE OPTION IF NORTH KOREA CONTINUED TO REFUSE TO COOPERATE THE IAEA BOARD WHICH IS TO MEET NEXT WEEK HAD BEEN EXPECTED TO TURN THE MATTER OVER TO THE UN IF INSPECTIONS WEREN'T AGREED TO NORTH KOREA IN TURN HAS SAID IT WOULD CONSIDER INTERNATIONAL SANCTIONS AN ACT OF WAR THE US WELCOMED THE ANNOUNCEMENT YESTERDAY MICHAEL MCCURRY THE STATE DEPARTMENT SPOKESMAN SAID WE LOOK FORWARD TO THE BEGINNING OF THESE INSPECTIONS AS SOON AS POSSIBLE THE US AND NORTH KOREA ARE RESUMING INFORMAL TALKS IN NEW YORK WHERE THE TWO SIDES WILL DISCUSS DETAILS OF THE INSPECTIONS IF THE INSPECTIONS ARE COMPLETED TO THE IAEA'S SATISFACTION AND IF NORTH KOREA AGREES TO RESUME A DIALOGUE ON DENUCLEARIZATION WITH SOUTH KOREA THE US WOULD HOLD ITS THIRD ROUND OF HIGHLEVEL TALKS WITH PYONGYANG THESE TALKS ARE DESIGNED TO PROVIDE NORTH KOREA'S IMPOVERISHED AND ISOLATED REGIME WITH THE REWARDS OF INTERNATIONAL ECONOMIC AID AND POSSIBLE DIPLOMATIC RECOGNITION IF IT AGREES TO END ITS NUCLEARWEAPONS PROGRAM A SATISFACTORY COMPLETION OF THE INSPECTIONS IS ALSO LIKELY TO BRING ABOUT THE SUSPENSION OF A MAJOR ANNUAL USSOUTH KOREAN MILITARY EXERCISE KNOWN AS TEAM SPIRIT US OFFICIALS SAY THESE STEPS ALL ARE PART OF AN INTERNATIONAL POKER GAME BEING PLAYED BY THE US AND NORTH KOREA THE NORTH KOREANS WHOSE ONLY SIGNIFICANT ASSET IS THEIR NUCLEAR PROGRAM ARE EXPECTED TO DRIBBLE OUT CONCESSIONS ONE AT A TIME THEY WILL SIT ON THEIR HANDS AND KEEP ALARMING THE INTERNATIONAL COMMUNITY THEY HAVE TO DO THAT TO KEEP THEIR BARGAINING STRATEGY CREDIBLE PREDICTS PETER HAYES A RESEARCHER AT THE NAUTILUS FOUNDATION A PRIVATE RESEARCH GROUP US OFFICIALS ACKNOWLEDGED YESTERDAY THAT A LOT OF WORK LIES AHEAD BEFORE THE INTERNATIONAL COMMUNITY CAN DEFANG NORTH KOREA'S NUCLEARWEAPONS PROGRAM BUT SAID JACK MENDELSOHN DEPUTY DIRECTOR OF THE PRIVATE ARMS CONTROL ASSOCIATION AT LEAST SO FAR THE WORST THING HASN'T GONE WRONG THE PLUG HASN'T BEEN PULLED AT THE IAEA LEADING TO SANCTIONS THAT SEEMS TO HAVE BEEN AVOIDED FOR NOW 9402160125 940216 BUSINESS BRIEF TEXACO INC FIRM'S NEW GASOLINE AIMED AT EXTENDING LIFE OF CAR TEXACO INC ANNOUNCED A NEW GENERATION OF GASOLINES THAT IT SAYS WILL EXTEND THE LIFE OF AUTOMOBILES WHILE EMITTING LESS POLLUTION NEW CLEANSYSTEM3 WHICH IS ACTUALLY AN ADDITIVES PACKAGE THAT WILL BE ADDED TO ALL OF TEXACO'S EXISTING GASOLINES SIGNIFICANTLY CUTS THOSE TAILPIPE EMISSIONS RESPONSIBLE FOR THE CREATION OF SMOG ACCORDING TO DAVID COLE DIRECTOR OF UNIVERSITY OF MICHIGAN'S OFFICE FOR THE STUDY OF AUTOMOTIVE TRANSPORTATION THE PACKAGE HELPS TO RESTORE THE PERFORMANCE OF OLD CARS BY CLEANING ENGINES THAT ARE ALREADY DIRTY AND PREVENTS DAMAGING DEPOSITS IN NEW ONES IT ESSENTIALLY SLOWS A VEHICLE'S AGING PROCESS MR COLE HELPED TEXACO TO EVALUATE THE ADDITIVES PACKAGE THE ENHANCED GASOLINE WILL BE AVAILABLE THROUGHOUT THE US MARCH 1 AT MORE THAN 14000 TEXACO SERVICE STATIONS AND IN EUROPE AND PARTS OF LATIN AMERICA BY SPRING 9402160124 940216 INTERNATIONAL BRIEF POLYGRAM NV COMPANY ESTABLISHES UNIT IN CZECH SLOVAK REPUBLICS DUTCH RECORDING AND FILMEDENTERTAINMENT COMPANY POLYGRAM NV SAID IT HAS SET UP A UNIT IN THE CZECH AND SLOVAK REPUBLICS AS PART OF ITS PLANNED EXPANSION INTO EASTERN EUROPE THE NEW UNIT BEGINS OPERATIONS MARCH 1 LONDONBASED POLYGRAM SAID POLYGRAM WHICH IS MAJORITYOWNED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS ALREADY HAS A SUBSIDIARY IN BUDAPEST THE SUBSIDIARY WILL BE BASED IN PRAGUE AND HAVE A BRANCH OFFICE IN THE SLOVAK CAPITAL OF BRATISLAVA EASTERN EUROPE REPRESENTS IMPORTANT GROWTH OPPORTUNITIES FOR POLYGRAM THE COMPANY SAID NOTING THAT IN THE CZECH REPUBLIC THE LEVEL OF MUSIC PIRACY IS AMONG THE LOWEST OF THE FORMER COMMUNIST COUNTRIES 9402160123 940216 BUSINESS BRIEF AMERICAN EXPRESS CO SECURITIES IN TRAVELERS INC TO BE SOLD FOR 195 MILLION AMERICAN EXPRESS CO NEW YORK PLANS TO SELL ABOUT 195 MILLION OF SECURITIES IT OWNS IN TRAVELERS INC THE PLANS INCLUDE THE SALE OF 25 MILLION SHARES OF 55 CONVERTIBLE TRAVELERS PREFERRED STOCK EACH OF THE SERIES B SHARES HAS A STATED VALUE OF 50 AND IS CONVERTIBLE AT A PRICE OF 3675 A COMMON SHARE AMERICAN EXPRESS ALSO PLANS TO SELL 375 MILLION TRAVELERS WARRANTS EACH OF WHICH REPRESENTS A RIGHT TO BUY ONE SHARE OF TRAVELERS COMMON STOCK AT 39 A SHARE UNTIL JULY 31 1998 TRAVELERS WON'T RECEIVE ANY PROCEEDS FROM THE OFFERING AMERICAN EXPRESS ACQUIRED THE SECURITIES IN JULY 1993 WHEN IT SOLD ITS SHEARSON BROKERAGE UNIT TO PRIMERICA CORP THE PREDECESSOR TO TRAVELERS INC AMERICAN EXPRESS PLANS TO SELL THE SECURITIES THROUGH A PUBLIC OFFERING FOR WHICH TRAVELERS HAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TRAVELERS CLOSED AT 39125 DOWN 375 CENTS 9402160122 940216 THE PARAMOUNT TAKEOVER THE DRAMA ENDED TWO STARS GET NEW SCRIPTS VIACOM'S BIONDI HAS TO STRETCH TO FILL BIG ROLE BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE SUMMER OF 1987 FRANK J BIONDI JR SOLD HIS HOUSE IN RIVERDALE NY BOUGHT A MANSION IN BEVERLY HILLS CALIF AND WAS A FEW DAYS AWAY FROM MOVING TO HOLLYWOOD TO RUN THE TELEVISION OPERATIONS OF COCACOLA CO'S COLUMBIA PICTURES THEN SUMNER REDSTONE CALLED AND OFFERED HIM THE CEO POST AT VIACOM INC IN NEW YORK THOUGH IT CAUSED BIG REAL ESTATE HEADACHES MR BIONDI'S DECISION TO SAY YES WAS A SMART CAREER MOVE COLUMBIA WAS LATER SOLD TO SONY CORP WHICH REPLACED ALL THE TOP MANAGERS NOW THAT VIACOM HAS WON THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC AND IS POISED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORP MR BIONDI WILL BE THE CHIEF EXECUTIVE WITH DAYTODAY RESPONSIBILITY FOR THE FARFLUNG OPERATIONS OF THE NEW ENTERTAINMENT CABLE AND RETAILING GIANT IT'S A BIG JOB AND THE 49YEAROLD MR BIONDI WILL HAVE TO STRETCH TO FILL IT THOUGH REGARDED AS A SAVVY EXECUTIVE WITH STRONG FINANCIAL DEALMAKING AND STRATEGIC SKILLS AND A KNACK FOR MANAGING A DIVERSE GROUP OF YOUNG EXECUTIVES AT VIACOM HE HAS NO EXPERIENCE RUNNING A MOVIE STUDIO A PUBLISHING HOUSE OR A RETAILING BUSINESS HE'S A STRATEGIC THINKER NOT A HANDSON CREATIVE GUY SAYS JOHN TINKER AN ANALYST AT FURMAN SELZ INC ON TOP OF MELDING THE OPERATIONS OF THREE SPRAWLING COMPANIES HE SAYS MR BIONDI'S BIGGEST CHALLENGE WILL BE FIXING THE TROUBLED PARAMOUNT STUDIO PARAMOUNT IS OBVIOUSLY IN DISARRAY AFTER THIS FIVEMONTH BATTLE AND IT WILL TAKE A LONG TIME TO SORT THAT OUT AND REBUILD MORALE MR TINKER SAYS MR BIONDI WHO CHAFES AT THE NOTION THAT HE HASN'T RUN CREATIVE BUSINESSES POINTS TO HIS EXPERIENCE MANAGING CREATIVE PEOPLE IN THE TV BUSINESS AND SAYS THAT IN ANY EVENT HIS JOB ISN'T TO DECIDE WHAT MOVIES TO MAKE OR WHAT BOOKS TO PUBLISH MY JOB IS TO SET GOALS FIND RESOURCES IN BOTH CAPITAL AND PEOPLE AND UNDERSTAND THE BASIC DYNAMICS OF THE BUSINESS HE SAYS ASIDE FROM THAT IT'S BASICALLY TO GET OUT OF THE WAY THOUGH HE HAS HAD WIDE AUTONOMY AS THE CHIEF EXECUTIVE OF VIACOM MR BIONDI HAS ULTIMATELY HAD TO ANSWER TO ITS CHAIRMAN THE STRONGWILLED OFTEN IRASCIBLE MR REDSTONE THE 70YEAROLD BILLIONAIRE CONTROLS CLOSE TO 80 OF VIACOM'S VOTING STOCK AND LIKES TO MEDDLE IN VIRTUALLY EVERY ASPECT OF THE BUSINESS IF THE MERGER WITH BLOCKBUSTER GOES THROUGH MR BIONDI WILL HAVE TWO POWERFUL BOSSES TO CONTEND WITH BLOCKBUSTER CHAIRMAN H WAYNE HUIZENGA WILL STAY ABOARD AS VICE CHAIRMAN OF THE COMBINED COMPANIES BUT IN MR HUIZENGA MR BIONDI HAS AN ALLY WHO IS LARGELY RESPONSIBLE FOR HIS CURRENT POSITION WHEN VIACOM AND PARAMOUNT FIRST AGREED TO A FRIENDLY MERGER LAST FALL PARAMOUNT CHIEF EXECUTIVE MARTIN DAVIS WAS TO BE THE CEO OF THE COMBINED VIACOM PARAMOUNT THOUGH MANY INDUSTRY OBSERVERS ASSUMED MR BIONDI WOULD EVENTUALLY SUCCEED MR DAVIS HIS ROLE WASN'T CLEARLY SPELLED OUT MR BIONDI'S SITUATION CHANGED WHEN QVC NETWORK INC MADE A COMPETING OFFER FOR PARAMOUNT STARTING THE BIDDING WAR THAT FORCED VIACOM INTO BLOCKBUSTER'S ARMS MR BIONDI HAD STRUCK UP A RELATIONSHIP WITH MR HUIZENGA A FEW YEARS BEFORE AND THE TWO HAD CHEWED OVER VARIOUS PARTNERSHIPS AND EVEN DISCUSSED A POSSIBLE MERGER LAST JULY AT ALLEN & CO'S ANNUAL INVESTORS CONFERENCE IN SUN VALLEY IDAHO MR BIONDI INTRODUCED MR REDSTONE TO MR HUIZENGA BLOCKBUSTER LATER AGREED TO INVEST 600 MILLION IN VIACOM'S PARAMOUNT BID WHEN VIACOM NEEDED MORE CASH AND A STRONGER BALANCE SHEET TO LOAD UP WITH DEBT IT AGREED TO ACQUIRE BLOCKBUSTER IN A STOCK SWAP AS PART OF THE AGREEMENT MR HUIZENGA INSISTED THAT MR BIONDI RUN THE COMBINED COMPANIES INCLUDING PARAMOUNT SHOULD VIACOM WIN THAT CONTEST MR HUIZENGA HAD GOOD REASON TO ADMIRE MR BIONDI'S SKILLS HANDSOME ATHLETIC AND PERSONABLE MR BIONDI IS RESPECTED AND WELLLIKED IN THE CABLE AND TV INDUSTRIES WHERE HE HAS SPENT MUCH OF HIS CAREER IN CONTRAST TO MR REDSTONE WHO OFTEN LOSES HIS TEMPER AND YELLS TO MAKE A POINT MR BIONDI IS AN EVENTEMPERED EXECUTIVE WHO THOUGH TOUGHMINDED PREFERS NEGOTIATION TO CONFRONTATION AN AVID SKIER AND TENNIS PLAYER MR BIONDI ACKNOWLEDGES HE'S EXTREMELY COMPETITIVE THROUGHOUT THE PARAMOUNT TAKEOVER BATTLE MR BIONDI KEPT MUCH OF HIS FOCUS ON OPERATIONS LEAVING STRATEGIZING AND MEETINGS WITH INVESTMENT BANKERS TO MR REDSTONE AND GENERAL COUNSEL PHILIPPE DAUMAN A STRONG FAMILY MAN WITH TWO TEENAGE DAUGHTERS MR BIONDI ORGANIZED AND CARRIED OFF A SURPRISE BIRTHDAY PARTY FOR HIS WIFE CAROL AT NEW YORK'S 21 CLUB ON THE EVE OF THE FINAL DEADLINE FOR BIDS MR BIONDI IS CREDITED WITH MAKING VIACOM ONE OF THE FEW LEVERAGED BUYOUTS OF THE 1980S THAT WORKED AFTER MR REDSTONE ACQUIRED IT IN 1987 FOR 34 BILLION MR BIONDI SPENT MUCH OF THE NEXT THREE OR FOUR YEARS PAINSTAKINGLY RESTRUCTURING ITS DEBT GETTING OUT OF THE JUNK BOND MARKET AND SHEDDING NONESSENTIAL ASSETS MEANWHILE HE FOCUSED ON EXPANDING ITS MTV AND NICKELODEON FRANCHISES WORLDWIDE A PRINCETON GRADUATE WITH A HARVARD MBA MR BIONDI STARTED HIS CAREER ON WALL STREET AND DID FINANCIAL CONSULTING BEFORE GETTING INTO THE NASCENT CABLE INDUSTRY HE HELD FINANCIAL POSTS AT CABLE AND TELEVISION PRODUCTION COMPANIES UNTIL A FRIEND MICHAEL FUCHS THEN THE PROGRAMMING CHIEF AT HOME BOX OFFICE INC WOOED HIM TO THE PAYTV CONCERN THAT IS NOW A UNIT OF TIME WARNER INC MR BIONDI ROSE QUICKLY THROUGH THE RANKS AT HBO EVENTUALLY BECOMING ITS CHIEF EXECUTIVE HBO WAS IN A BIG GROWTH SPURT THEN AND MR BIONDI PURSUED AN AGGRESSIVE STRATEGY OF LOCKING UP MOVIE RIGHTS BY SIGNING EXCLUSIVE CONTRACTS PRIMARILY WITH COKE'S COLUMBIA PICTURES UNIT THE CONTRACTS WERE LUCRATIVE FOR COLUMBIA BUT PROVED EXPENSIVE FOR HBO WHEN THE PAYTV BUSINESS HIT A SLUMP MR BIONDI CLASHED OVER HIS STRATEGY WITH NJ NICHOLAS THEN HEAD OF TIME'S VIDEO GROUP AND WAS FORCED TO RESIGN BUT HE WAS QUICKLY OFFERED A JOB BY COKE'S ENTERTAINMENT UNIT AS AN EXECUTIVE VICE PRESIDENT AND CHIEF ENTERTAINMENT ACQUISITIONS STRATEGIST AS A RESULT HE WAS CLOSELY INVOLVED IN COKE'S 485 MILLION ACQUISITION OF EMBASSY COMMUNICATIONS INC IN 1985 AND ITS PURCHASE OF MERV GRIFFIN ENTERPRISES INC FOR 200 MILLION WHEN MR BIONDI TOOK THE VIACOM JOB HE MOVED QUICKLY TO PUT IN HIS OWN TEAM HIRING SEVERAL MANAGERS FROM TIME AND HBO BUT VIACOM'S SHOWTIME UNIT WAS A DISTANT COMPETITOR TO HBO AND MR BIONDI AND HIS TEAM WERE UNABLE TO DO MUCH TO INCREASE ITS MARKET SHARE A SIMMERING FEUD BETWEEN THE TWO SIDES ERUPTED INTO WARFARE WHEN MR REDSTONE AGAINST THE ADVICE OF MR BIONDI AND OTHERS AT VIACOM FILED A 25 BILLION ANTITRUST SUIT AGAINST TIME AND HBO THE SUIT WAS LATER SETTLED MR BIONDI'S ADMIRERS ON WALL STREET AREN'T PARTICULARLY WORRIED ABOUT HIS ABILITY TO TURN AROUND PARAMOUNT AND FIND THE RIGHT MANAGERS FOR ITS CREATIVE BUSINESSES FRANK BIONDI HAS ALL THE SKILLS NECESSARY TO DO A GOOD JOB HE'S WORKED WITH PEOPLE ON THE CREATIVE SIDE AND HE UNDERSTANDS DISTRIBUTION SAYS FUND MANAGER MARIO GABELLI WHO TENDERED HIS FOUR MILLION PARAMOUNT SHARES TO VIACOM REMEMBER THIS IS HOLLYWOOD TALENT WILL QUEUE UP TO WORK AT PARAMOUNT NO MATTER WHO'S RUNNING IT SEE RELATED ARTICLE DILLER EMERGES UNSCATHED HIS PROSPECTS GOOD WSJ FEB 16 1994 9402160121 940216 UPS PULLED DRIVERS OFF JOB IN JANUARY ON LOW VOLUME ATLANTA UNITED PARCEL SERVICE OF AMERICA INC SAID THOUSANDS OF DRIVERS TEMPORARILY WERE OFF THE JOB IN JANUARY BECAUSE OF A BUSINESS SLOWDOWN FROM BAD WEATHER AND A RECENT STRIKE ON DAYS WHEN VOLUME WAS OFF THE COMPANY SAID SOME EMPLOYEES WERE TOLD NOT TO REPORT TO WORK IN A RECENT LETTER REPRIMANDING EMPLOYEES FOR LAST WEEK'S STRIKE THE PACKAGE CARRIER'S CHIEF EXECUTIVE KENT C NELSON SAID DOMESTIC WEEKLY GROUND VOLUME FELL AS MUCH AS 13 IN THE FIRST FIVE WEEKS OF 1994 COMPARED WITH 1993 VOLUME DROPPED 32 DURING THE WEEK OF THE STRIKE A DECREASE OF ABOUT 350000 PACKAGES ALTHOUGH THE BIGGEST DECLINES WERE BECAUSE OF WEATHER MR NELSON SAID THE STRIKE COST THE COMPANY BUSINESS GOODWILL AND JOBS IN THE FOURTH QUARTER THE COMPANY'S GROUND TRAFFIC WHICH MAKES UP ABOUT 90 OF ITS VOLUME FELL ABOUT 1 ON A DECLINE IN RESIDENTIAL CUSTOMERS A COMPANY SPOKESMAN SAID WHILE NOT GIVING SPECIFIC NUMBERS UPS SAID SEVERAL THOUSAND DRIVERS HAD TO STAY HOME BECAUSE OF DECLINES A WEEK AGO UPS FILED A LAWSUIT IN US DISTRICT COURT IN WASHINGTON AGAINST THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS SEEKING DAMAGES FOLLOWING WHAT UPS CALLED AN ILLEGAL STRIKE THE TEAMSTERS HAVE SAID THE SUIT IS WITHOUT MERIT 9402160120 940216 TRUMP SEEKS PARTNER TO HELP FUND STALLED MANHATTAN PROJECT NEW YORK FACED WITH BURDENSOME TERMS DEMANDED BY HIS WOULDBE PARTNER DONALD TRUMP IS ATTEMPTING TO FIND ANOTHER FINANCING SOURCE FOR HIS LONGSTALLED MANHATTAN DEVELOPMENT PROJECT OVER THE PAST MONTH LOS ANGELESBASED COLONY CAPITAL CORP HAD INCREASED ITS DEMANDS FOR OWNERSHIP IN THE MIXEDUSE RIVERSIDE SOUTH DEVELOPMENT PROJECT TO NEARLY 80 ACCORDING TO TWO SOURCES FAMILIAR WITH THE NEGOTIATIONS MR TRUMP HAS BALKED WE ARE PREPARED TO GO FORWARD BUT BECAUSE OF THE IMMENSE COMPLEXITY ONLY ON VERY SPECIFIC CRITERIA SAID THOMAS BARRACK JR COLONY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER I DON'T SEE THE DEAL HAPPENING SAID MR TRUMP NEITHER MR TRUMP NOR MR BARRACK WOULD DISCUSS SPECIFICS OF THE NEGOTIATIONS CHASE MANHATTAN CORP WHICH HAD TENTATIVELY AGREED TO SELL COLONY ITS ROUGHLY 250 MILLION LOAN ON THE PROPERTY FOR BETWEEN 80 MILLION AND 100 MILLION DECLINED TO COMMENT AMONG THE ALTERNATIVE SOURCES APPROACHED BY MR TRUMP ARE THE REAL ESTATE INVESTMENT ARMS OF FINANCIERS GEORGE SOROS AND MICHAEL STEINHARDT BOTH ORGANIZATIONS DECLINED COMMENT ON WHETHER THEY WERE APPROACHED RIVERSIDE SOUTH A MIXTURE OF 5700 APARTMENTS 375000 SQUARE FEET OF RETAIL AND OFFICE SPACE AND 25 ACRES OF PARK STRETCHING ALONG THE HUDSON RIVER ON MANHATTAN'S UPPER WEST SIDE WAS STALLED FOR YEARS BY COMMUNITY GROUPS WHO SUCCEEDED IN FORCING MR TRUMP TO SCALE DOWN ITS SIZE AND ADD PUBLIC AMENITIES 9402160119 940216 GREATER DISTANCE IS URGED BETWEEN 757S SMALL CRAFT WASHINGTON AIRTRAFFIC CONTROLLERS SHOULD KEEP SMALL PLANES FARTHER AWAY FROM THE WAKE OF BOEING 757S AND OTHER PLANES OF SIMILAR WEIGHT THE NATIONAL TRANSPORTATION SAFETY BOARD SAID THE MOVE COMES AFTER A SLEW OF INCIDENTS IN WHICH PILOTS OF SMALL JETS AND TURBOPROP PLANES LOST CONTROL OF THEIR PLANES WHILE BEHIND BOEING CO'S 757S THE SAFETY BOARD PLAYED DOWN THE THEORY THAT THE 757'S WAKE IS ESPECIALLY TROUBLESOME BECAUSE OF THE PLANE'S WING DESIGN THE BOARD SAID PROBLEMS WITH THE FEDERAL AVIATION ADMINISTRATION'S WEIGHT CLASSIFICATIONS AND INADEQUATE TRAINING FOR PILOTS WERE BIGGER FACTORS IN FIVE RECENT CRASHES THE SAFETY BOARD RECOMMENDED THAT PILOTS STAY AS FAR BEHIND THE 757 AS THEY DO BEHIND HEAVIER AIRPLANES BUT STOPPED SHORT OF CALLING FOR THE 757 TO BE CLASSIFIED AS A HEAVY AIRCRAFT BECAUSE THE 757 WEIGHS LESS THAN 300000 POUNDS IT IS CLASSIFIED AS LARGE MEANING SMALL PLANES CURRENTLY CAN TRAIL BY FOUR MILES INSTEAD OF SIX MILES FOR HEAVY AIRCRAFT OFFICIALS OF BOEING SEATTLE SAID THEY HADN'T SEEN THE BOARD'S RECOMMENDATIONS YET BUT THAT SMALL PLANES HAVEN'T ENCOUNTERED ANY PROBLEMS WHEN THEY'VE FOLLOWED CURRENT SEPARATION STANDARDS 9402160118 940216 CREDIT RATINGS NEW YORK STANDARD & POOR'S CORP CITING THE INCREASED COMPETITION USAIR GROUP INC FACES FROM LOWCOST CARRIERS PLACED ABOUT 29 BILLION OF USAIR'S LONGTERM DEBT ON CREDITWATCH FOR POSSIBLE DOWNGRADES THE RATING CONCERN SAID LAST WEEK'S DECISION BY USAIR TO SHARPLY CUT FARES IN ABOUT A QUARTER OF ITS MARKETS PROBABLY WILL PRODUCE HEAVY LOSSES EVEN IF IT IS SUCCESSFUL IN COUNTERING RIVAL AIRLINES' COMPETITIVE INROADS USAIR SLASHED FARES AS MUCH AS 50 ON MANY OF ITS BUSINESS ROUTES IN AN EFFORT TO MATCH THOSE OFFERED BY CONTINENTAL AIRLINES AND SOUTHWEST AIRLINES BUT S&P SAID THE NEW FARES AREN'T EXPECTED TO GENERATE ENOUGH TRAFFIC TO OFFSET THE RESULTING LOWER YIELDS A MEASURE OF REVENUE FOR EACH SEAT PHILIP BAGGALEY VICE PRESIDENT OF S&P'S TRANSPORTATION RATINGS GROUP SAID THAT WITH CONTINENTAL'S LOWFARE PROGRAM DIVERTING TRAFFIC USAIR WAS IN TROUBLE EITHER WAY THEY DIDN'T HAVE ANY EASY CHOICES HE ALSO POINTED TO YESTERDAY'S ANNOUNCEMENT BY SOUTHWEST THAT IT WOULD ADD MORE GATES TO ITS OPERATION AT BALTIMOREWASHINGTON INTERNATIONAL AIRPORT THAT INCREASES THE THREAT SAID MR BAGGALEY AND THEY'RE ALREADY CAUSING SOME TROUBLE S&P SAID USAIR'S PLAN TO LOWER ITS COSTS BY BOOSTING OPERATING EFFICIENCIES ON ITS SHORTHAUL ROUTES WILL HELP THE PROBLEM OVER TIME BUT FURTHER CONCESSIONS FROM EMPLOYEES MAY BE NECESSARY TO RETURN TO PROFITABILITY THE AGENCY SAID USAIR BASED IN ARLINGTON VA DECLINED TO COMMENT AMONG THE MANY USAIR SECURITIES PLACED UNDER REVIEW ARE THE COMPANY'S AIRPORT REVENUE BONDS CURRENTLY RATED DOUBLEBMINUS 9402160117 940216 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA ITALIAN AUTHORITIES SEQUESTER SISTERS' SHARES REPORTS SAY ITALIAN FINANCIALENFORCEMENT AUTHORITIES SEQUESTERED 120 BILLION LIRE 710 MILLION IN FERRUZZI GROUP SHARES HELD BY SISTERS ALESSANDRA AND FRANCA FERRUZZI ACCORDING TO ITALIAN NEWSPAPER REPORTS THE SEQUESTRATION REPORTEDLY IS RELATED TO THE INVESTIGATION OF ALLEGED FERRUZZI SLUSH FUNDS AND INVOLVES SHARES IN SERAFINO FERRUZZI SRL FERRUZZI SERAFINO ITALIA SRL FERRUZZI FINANZIARIA SPA AND VENINI SPA FERRUZZI HANDED OVER OPERATIONAL CONTROL TO A GROUP OF CREDITOR BANKS LAST SUMMER AFTER SINKING UNDER 28 TRILLION LIRE OF TOTAL LOSSES FOR 1992 9402160116 940216 THE PARAMOUNT TAKEOVER THE DRAMA ENDED TWO STARS GET NEW SCRIPTS DILLER EMERGES UNSCATHED HIS PROSPECTS GOOD BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL BARRY DILLER'S STATEMENT CONCEDING QVC'S LOSS OF PARAMOUNT WAS BRIEF AND TO THE POINT THEY WON WE LOST NEXT JUST WHAT MR DILLER WILL DO NEXT IS THE SUBJECT OF CONSIDERABLE SPECULATION IN HOLLYWOOD AND ON WALL STREET HIS ANNOUNCED PLAN IS TO BUILD QVC NETWORK INC WHICH HAS EMERGED FROM THE BATTLE VIRTUALLY UNSCARRED INTO A MULTIMEDIA COMPANY OBSERVERS SAY MR DILLER ALSO MAY BE WEIGHING OTHER OPTIONS THAT WOULD GIVE HIM THE ENTERTAINMENT ASSETS HE SO COVETS CLEARLY BARRY DILLER IS GOING TO BE AT THE TOP OF A LOT OF LISTS OF PEOPLE ASSEMBLING PARTNERS FOR TAKEOVERS IN THE ENTERTAINMENT INDUSTRY SAID PETER DEKOM A HOLLYWOOD LAWYER MR DILLER DECLINED TO COMMENT ON THE SPECULATION WE'RE NOT GOING TO DISCUSS IT AT ANY TIME UNTIL AN OPPORTUNITY PRESENTS ITSELF THAT WE THINK IS WORTHWHILE HE SAID QVC HAS LOST TIME MR DILLER CONCEDED EVEN AS THE BATTLE OVER PARAMOUNT COMMUNICATIONS INC HAS DOMINATED MR DILLER'S ATTENTION THE HOMESHOPPING COMPANY HAS EMBARKED ON A COSTLY COURSE OF GROWTH TAKING ON NEW CHANNELS AND EXPANDING INTO FOREIGN MARKETS OBSERVERS SAY THAT THE COMPANY HAS A BRIGHT FUTURE THOUGH IT FACES NEARTERM CHALLENGES INCLUDING EARNINGS PRESSURE STEMMING FROM THE EXPANSION THAT NOW REQUIRE MR DILLER'S ATTENTION THOUGH QVC WILL HAVE TO PAY ITS ADVISERS ABOUT 30 MILLION IN FEES IT EMERGES FROM THE PARAMOUNT BATTLE NONE THE WORSE FOR WEAR AND WITH VIRTUALLY NO DEBT ALTHOUGH SOME SHAREHOLDERS ARE SMARTING OVER THE DECLINE IN ITS ONCELOFTY STOCK PRICE WHICH HOVERED ABOVE 60 BEFORE THE TAKEOVER BATTLE ITS SECURITIES ARE ALREADY STRONGLY REBOUNDING ON THE PROSPECTS THAT THE VANQUISHED QVC WON'T HAVE TO SHOULDER A BIG DEBT LOAD OR ISSUE A FLOOD OF NEW SHARES TO PAY FOR PARAMOUNT IN NASDAQ STOCK MARKET TRADING YESTERDAY QVC CLOSED AT 5025 UP 175 SHARE OR 36 EVEN IN DEFEAT MR DILLER'S STAR IS SHINING BRIGHT HE IS GARNERING HIGH MARKS FOR PROTECTING QVC'S EXISTING SHAREHOLDERS BY NOT BIDDING HIGHER FOR PARAMOUNT AND BY REFUSING TO OFFER A POTENTIALLY DILUTIVE PRICEGUARANTEE TO PARAMOUNT SHAREHOLDERS SUCH A GUARANTEE KNOWN IN TAKEOVER PARLANCE AS A COLLAR PROVED TO BE THE MARGIN OF VICTORY FOR VIACOM INC YET ALREADY THE COLLAR WILL COST VIACOM AN ADDITIONAL 700 MILLION IN NEWLY ISSUED STOCK IF ITS STOCK PRICE DOESN'T REBOUND WITHIN A YEAR FROM CURRENT LEVELS DILLER PROVED THAT HE WASN'T IMPRUDENT SAID CRAIG BIBB ANALYST AT PAINEWEBBER INC BASICALLY HE DID WHAT HE SAID HE WAS GOING TO DO WHICH WASN'T TO DESTROY SHAREHOLDER VALUE TO GET THIS DEAL DONE WITH THE BATTLE FOR PARAMOUNT OVER QVC IS BACK IN BUSINESS WITH A POWERFUL SHAREHOLDER TELECOMMUNICATIONS INC'S JOHN MALONE SOME OBSERVERS SAY MR DILLER COULD NOW LINK UP WITH MR MALONE AND PURSUE AN INVESTMENT IN MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC UNIT OTHERS SPECULATE MR DILLER COULD JOIN SEAGRAM CO'S EDGAR BRONFMAN JR WHO OWNS AN 112 STAKE IN TIME WARNER INC IN MAKING SOME KIND OF A MOVE ON THAT COMPANY OR HE COULD PURSUE GENERAL ELECTRIC CO'S NBC UNIT THE NETWORK HE EXPLORED A PURCHASE OF BEFORE GOING AFTER PARAMOUNT IF QVC HAD WON PARAMOUNT TCI AFFILIATE LIBERTY MEDIA INC WOULD HAVE BEEN FORCED TO GIVE UP ITS STAKE IN QVC BY FEDERAL ANTITRUST REGULATORS BELLSOUTH CORP WAS TO BUY THE LIBERTY STAKE IN QVC NOW LIBERTY CAN KEEP IT INDEED QVC WILL END UP WITH AN EVEN MORE POTENT BACKER IF THE PROPOSED ACQUISITION OF LIBERTY AND TCI BY BELL ATLANTIC CORP IS COMPLETED WE ARE BACK BACK WITH BELLS ON SAID PETER BARTON WHO HEADS LIBERTY MR MALONE HAS APPROACHED OFFICIALS OF MATSUSHITA AND ITS MCA UNIT ABOUT A POSSIBLE INVESTMENT IN THE OWNER OF UNIVERSAL PICTURES WHATEVER MALONE DOES I CAN SEE HIM CALLING UP BARRY SAID MR DEKOM THE HOLLYWOOD ATTORNEY ANYBODY SEEKING TO BUY A STUDIO PUTS DILLER AT THE TOP OF THE LIST AS A CANDIDATE TO RUN AND OWN PART OF IT THE MOST INTRIGUING SPECULATION HAS MR DILLER LINKING UP WITH SEAGRAM'S MR BRONFMAN SCION OF THE SPIRIT CONCERN'S CONTROLLING FAMILY TO WREST CONTROL OF TIME WARNER TIME WARNER INCREASINGLY CONCERNED ABOUT SEAGRAM'S INTENTION LAST MONTH ADOPTED A POISONPILL DEFENSE THAT WOULD BE TRIGGERED WHEN SOMEONE BUYS MORE THAN 15 OF ITS SHARES THAT MOVE IN TURN HAS IGNITED GROWING PREDICTIONS OF AN ENSUING TAKEOVER BATTLE THE SEAGRAMQVC TAKEOVER SCENARIOS BEGAN TO SURFACE IN THE LAST TWO WEEKS AS QVC'S MOMENTUM IN THE PARAMOUNT BATTLE BEGAN TO WANE AND BECAUSE OF STRONG LINKS BETWEEN THE TWO COMPANIES MR DILLER AND MR BRONFMAN ARE FRIENDS AND BOTH RELY ON INVESTMENT ADVICE FROM HERBERT ALLEN OF ALLEN & CO AND BOTH ALSO ARE FRIENDS OF SUPERAGENT MICHAEL OVITZ WHO ALSO IS ADVISING MR BRONFMAN BEFORE MR DILLER JOINED QVC SPECULATION THAT HE MIGHT BE ANGLING TO DISLODGE TIME WARNER CHAIRMAN GERALD LEVIN WAS SO RIFE THAT MR DILLER WROTE MR LEVIN A NOTE DISAVOWING ANY INTEREST IN THE POSITION STILL THE SPECULATION ABOUT A SEAGRAMQVC ATTACK ON TIME WARNER HAS REACHED THE EARS OF TIME WARNER EXECUTIVES I HEARD IT A WEEK AGO SAID ONE SENIOR OFFICIAL BUT THAT'S ONLY A RUMOR FLOATING AROUND NEW YORK I KNOW THAT BARRY KNOWS JUNIOR EDGAR BRONFMAN JR WELL THEY ALL HANG OUT IN THE SAME GROUP THE EXECUTIVE DISMISSED THE TALK HOWEVER IT DOESN'T MAKE SENSE HE SAID BUT THEN ON QUICK REFLECTION HE ADDED ANYTHING IS POSSIBLE TIME WARNER DECLINED TO COMMENT WHILE THE SPECULATION CONTINUES MR DILLER HAS TO TACKLE THE MORE IMMEDIATE TASK OF REFIRING GROWTH AT QVC IN LATE 1992 QVC LAUNCHED A GROWTHBOOSTING PROGRAM THAT AIRS AT MIDNIGHT CALLED TODAY'S SPECIAL VALUE WHICH DAILY FEATURED AN EXTRAORDINARY BARGAIN AS A RESULT SAIDPAINEWEBBER'S MR BIBB QUARTERLY REVENUE GROWTH PER QVC SUBSCRIBER HOME WAS 6 TO 11 LAST YEAR WITHOUT NEW PROGRAMS HE ESTIMATED THAT QUARTERLY PERHOME REVENUE GROWTH THIS YEAR WILL BE NO HIGHER THAN 6 HE SAID HE EXPECTS OVERALL REVENUE GROWTH TO SLOW TO 13 THIS YEAR FROM 1993'S 15 CONTINUING AN ANNUAL SLIDE FROM THE 19 REVENUE GAIN IN 1991 THE LAUNCHES WILL COINCIDE ROUGHLY WITH A MAJOR MARKETING PUSH SET TO BEGIN IN MID TO LATE SPRING WE WILL START TO ADVERTISE TO PEOPLE WHO DON'T USE THE SERVICE TO GET THEM TO WATCH SPECIFIC PROGRAMS AT SPECIFIC TIMES MR DILLER SAID ON THE DRAWING BOARD FOR NEXT YEAR IS AN ONLINE SHOPPING SERVICE ON THE INTERNATIONAL FRONT QVC LAUNCHED TV HOMESHOPPING SERVICES IN MEXICO AND IN LONDON IN PARTNERSHIP RESPECTIVELY WITH GRUPO TELEVISA AND BSKYB A DIRECTBROADCAST SATELLITE SERVICE AND UNIT OF NEWS CORP MR DILLER SAID HE EXPECTS THE MEXICO VENTURE TO TURN A PROFIT WITHIN A YEAR AND THE BRITISH VENTURE TO BE PROFITABLE BY THE END OF 1995 WITH TCI BACK IN THE PICTURE AND PARAMOUNT BEHIND HIM MR DILLER ALSO IS EXPECTED TO TRY TO RESTART THE ABORTED MERGER TALKS WITH TCI'S HOME SHOPPING NETWORK INC QVC'S CHIEF RIVAL COMBINING THE TWO WOULD GIVE MR DILLER A LARGER PLAYGROUND NOTED PAINEWEBBER'S MR BIBB THERE WOULD BE A LOT OF BENEFITS IN TERMS OF COST SAVINGS SEE RELATED ARTICLE VIACOM'S BIONDI HAS TO STRETCH TO FILL BIG ROLE WSJ FEB 16 1994 9402160115 940216 COMMODITIES PLATINUM FUTURES SOAR ON JAPANESE BUYING TURMOIL IN SOUTH AFRICA THREATENS KEY SUPPLY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PLATINUM FUTURES PRICES SOARED ON BUYING BY JAPANESE INDUSTRIAL CONSUMERS AND POLITICAL INSTABILITY IN SOUTH AFRICA WHICH PRODUCES 85 OF THE WORLD'S PLATINUM SUPPLY AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SHOT UP 630 TO 404 AN OUNCE WHILE THE PRICE OF THE RELATED MARCH PALLADIUM FUTURES CONTRACT ROSE 420 TO 13880 AN OUNCE OTHER PRECIOUSMETALS MARKETS WERE LACKLUSTER HOWEVER AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN 10 CENTS TO 38550 AN OUNCE AND MARCH SILVER FELL 880 CENTS TO 5262 AN OUNCE THE RECENT SURGE IN THE YEN'S VALUE AGAINST THE DOLLAR HAS PROVED TO BE A MAJOR BOOST FOR THE PLATINUM MARKET THE YEN'S RISE HAS REALLY BROUGHT A LOT OF JAPANESE INVESTORS INTO THE MARKET SAID NINA LIPTON MARKET RESEARCH DIRECTOR FOR PLATINUM GUILD INTERNATIONAL SINCE PLATINUM IS DENOMINATED IN DOLLARS IT'S VERY INEXPENSIVE FOR THEM AMONG OTHER THINGS THEY'RE LOOKING TO HEDGE THEIR STOCK PORTFOLIOS AND PLATINUM IS ONE OF THE WAYS THEY DO IT JAPAN'S ELECTRONICS AND AUTOMOTIVE INDUSTRIES ARE TWO OF THE MOST IMPORTANT INDUSTRIAL CONSUMERS OF PLATINUM AND SIMILAR INDUSTRIAL METALS SUCH AS PALLADIUM AND RHODIUM PLATINUM AND THESE OTHER METALS ARE USED IN THE MANUFACTURE OF CATALYTIC CONVERTERS IN CARS AND IN THE CIRCUITRY OF ELECTRONIC PRODUCTS LATELY JAPANESE TRADE GROUPS HAVE BEEN NEGOTIATING CONTRACTS WITH RUSSIA A PRINCIPAL SUPPLIER OF PALLADIUM TO GET THE PALLADIUM THEY NEED THEY MAY BE OBLIGED ALSO TO BUY RUSSIAN PLATINUM WHICH COULD HELP SUPPORT PRICES FOR SOME TIME TO COME ANALYSTS SAY THE DEMAND FOR PLATINUM HAS HELPED TO PUSH ITS PRICE TO ITS TRADITIONAL PLACE WELL ABOVE THE PRICE OF GOLD ONLY A FEW MONTHS AGO PLATINUM'S PRICE HAD FALLEN BEHIND THAT OF GOLD ALSO SUPPORTING THE PLATINUM MARKET IS THE CONTINUING TURMOIL SURROUNDING SOUTH AFRICA'S SCHEDULED ELECTIONS THE FIRST IN WHICH BLACK SOUTH AFRICANS WILL BE ALLOWED TO VOTE BECAUSE THE COUNTRY IS THE WORLD'S PRINCIPAL PRODUCER OF PLATINUM TRADERS WATCH ITS INTERNAL POLITICS VERY CLOSELY ASSUMING THAT THE ELECTIONS DO TAKE PLACE THERE ARE CONCERNS IN THE MARKET THAT THE AFRICAN NATIONAL CONGRESS WILL WIN SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC THE FEELING IS THAT THAT COULD LEAD TO NATIONALIZATION OF THE MINING INDUSTRY AS THE ANC HAS INDICATED IT FAVORS DOING AND POSSIBLE SUPPLY SHORTAGES IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF CORN WHEAT AND SOYBEAN FUTURES CONTRACTS SLUMPED ACROSS THE BOARD GRAIN TRADERS BLAMED SOME OF THE DECLINE ON WORRIES ABOUT THE POTENTIAL FOR A TRADE WAR WITH JAPAN WHICH IS THE BIGGEST FOREIGN CUSTOMER OF US AGRICULTURE JAPAN IS PROJECTED TO SPEND NEARLY 9 BILLION DURING THE FISCAL YEAR ENDING SEPT 30 ON US FARM GOODS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY DROPPED 45 CENTS A BUSHEL TO SETTLE AT 2935 TRADERS ARE DIVIDED OVER WHETHER AGRICULTURE MIGHT GET DRAGGED INTO THE DISPUTE AND WHAT THAT WOULD MEAN FOR US GRAIN EXPORTS JAPAN HAS RELATIVELY FEW ALTERNATIVE SOURCES FOR CORNALTHOUGH A TRADE WAR MIGHT ALLOW CORN EXPORTERS SUCH AS CHINA ARGENTINA AND SOUTH AFRICA TO MAKE INROADS INTO THE JAPANESE MARKET THE US CONTROLS ABOUT 60 OF THE WORLD CORN TRADE CORN PRICES WERE ALSO DEPRESSED BY REPORTS THAT US CORN EXPORTS WERE LOWER THAN EXPECTED LAST WEEK SOYBEAN PRICES SLIPPED IN PART BECAUSE A MONTHLY SURVEY SHOWED THAT US OILSEED PROCESSORS CRUSHED ABOUT 35 MILLION FEWER BUSHELS IN JANUARY THAN THE SAME MONTH OF 1993 ENERGY PETROLEUM FUTURES GENERALLY DECLINED AS A SELLOFF IN HEATING OIL CONTINUED CRUDE OIL FOR MARCH DELIVERY DROPPED BRIEFLY BELOW 14 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE BUT DIDN'T STAY UNDER THAT PSYCHOLOGICALLY IMPORTANT LEVEL IT SETTLED AT 1406 A BARREL DOWN SEVEN CENTS FOR THE DAY MARCH HEATING OIL WHICH HAD FALLEN MORE THAN THREE CENTS A GALLON MONDAY DROPPED ANOTHER 077 CENT YESTERDAY TO SETTLE AT 4705 CENTS A GALLON SOME TRADERS WERE CAUTIOUS IN ADVANCE OF THE RELEASE BY THE AMERICAN PETROLEUM INSTITUTE OF ITS LATEST FUEL INVENTORY FIGURES AS USUAL THE API REPORTED THE FIGURES AFTER FUTURES TRADING HAD CLOSED AND THEY SHOWED MAJOR DECLINES LAST WEEK IN INVENTORIES OF CRUDE OIL AND FUELS CRUDE AND GASOLINE INVENTORIES WERE DOWN BY 43 MILLION BARRELS AND 32 MILLION BARRELS RESPECTIVELY STOCKS OF DISTILLATE FUELS WHICH INCLUDE HEATING OIL ALSO FELL BUT THE DECLINE OF 34 MILLION BARRELS WAS SLIGHTLY UNDER INDUSTRY EXPECTATIONS 9402160114 940216 SAUDI AIRLINE GIVES BIG ORDER TO US FIRMS MCDONNELL BOEING TO SPLIT JOB VALUED AT 6 BILLION DEAL MAY ANGER EUROPE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP AND BOEING CO WILL SPLIT A 6 BILLION ORDER FOR COMMERCIAL JETS FROM THE SAUDI ARABIAN CARRIER SAUDIA IN A LONGAWAITED ANNOUNCEMENT EXPECTED TODAY THE ORDER WHICH PROBABLY WILL BE THE LARGEST FOR THE WORLD'S PRODUCERS OF AIRLINERS OVER AT LEAST THE NEXT 18 MONTHS DOESN'T CALL FOR ANY PLANES FROM EUROPE'S AIRBUS INDUSTRIE CONSORTIUM ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH IT SOME OF THEM WORRY THAT INTENSE US GOVERNMENT EFFORTS TO STEER THE ORDER TO DOMESTIC JET MAKERS WILL INCREASE TRADE TENSIONS WITH EUROPE OVER ALLEGED UNFAIR SUBSIDIES FOR JET MAKERS THE AGREEMENT IS EXPECTED TO BE ANNOUNCED AFTER PRINCE BANDAR BIN SULTAN THE SAUDI AMBASSADOR TO THE US MEETS TODAY WITH PRESIDENT CLINTON OFFICIALS AT THE SAUDI ARABIAN EMBASSY IN WASHINGTON DC COULDN'T BE REACHED FOR COMMENT THE ORDER WILL INCLUDE 60 TO 66 AIRCRAFT WITH THE FINAL NUMBER DEPENDING ON HOW THE SAUDIS DISPOSE OF THEIR CURRENT AIRCRAFT AND ON THE OUTCOME OF NEGOTIATIONS ON FINAL PRICES AND DELIVERY DATES SAID THOSE FAMILIAR WITH THE ARRANGEMENTS ABOUT 60 OF THE ORDER'S VALUE IS EXPECTED TO GO TO BOEING WITH THE REST TO MCDONNELL DOUGLAS DETAILS OF THE ORDER WEREN'T SPELLED OUT BY THOSE FAMILIAR WITH IT STILL ST LOUISBASED MCDONNELL DOUGLAS IS A BIG WINNER IN THE SAUDI AGREEMENT BECAUSE IT NEEDED A LARGE ORDER BADLY BUT ITS STRUGGLING COMMERCIALAIRPLANE UNIT NEEDS EVEN MORE NEW ORDERS SOON THE ORDER INCLUDES ABOUT 25 OF MCDONNELL DOUGLAS'S SMALLER MD90 TWINJETS BUT THE COMPANY'S BIGGEST COUP IS ITS PLACEMENT OF A SUBSTANTIAL NUMBER OF THREEENGINE MD11 AIRCRAFT IN THE SAUDIA FLEET AND IN THE ROYAL FLIGHT OF AIRLINERS THAT CARRIES THE KINGDOM'S TOP OFFICIALS THE ORDER MAY ALSO INCLUDE SOME MCDONNELL DOUGLAS KC11 MILITARY TANKER AIRCRAFT SEATTLEBASED BOEING WILL GET SORELY NEEDED ORDERS FOR 10 TO 12 OF ITS 747 JUMBO JETS MORE THAN HAD BEEN EXPECTED AND A NUMBER OF MIDSIZE TWINENGINE AIRPLANES SUCH AS ITS NEW 777 OR ESTABLISHED 767 AND 757 MODELS TERMS OF THE ORDER REMAINED CLOAKED IN SECRECY YESTERDAY PARTLY BECAUSE SAUDI OFFICIALS HAVE BEEN UPSET IN THE PAST BY US GOVERNMENT DISCLOSURES ABOUT THE TRANSACTION INCLUDING AN ANNOUNCEMENT IN THE SUMMER BY SEN PATTY MURRAY A WASHINGTON DEMOCRAT THAT PRESIDENT CLINTON HAD INTERVENED TO HELP WIN THE ORDER DURING THE PAST YEAR US OFFICALS INCLUDING PRESIDENT CLINTON COMMERCE SECRETARY RON BROWN AND TRANSPORTATION SECRETARY FEDERICO PENA HAVE ALL PROMOTED US SUPPLIERS TO THE SAUDIS SPOKESMEN FOR BOEING AND MCDONNELL DOUGLAS WOULDN'T COMMENT OR SAID THEY WEREN'T AWARE OF ANY NEW DEVELOPMENTS IN THE SAUDI COMPETITION A SPOKESMAN FOR AIRBUS WHICH HAD HOPED TO PLACE ITS SMALLER A320 JETLINER AND LARGER A330 AND A340 PLANES WITH SAUDIA ALSO SAID HE WASN'T AWARE OF ANY NEW DEVELOPMENTS THERE'S CERTAINLY BEEN AN EXTRAORDINARY AMOUNT OF PRESSURE FROM THE US GOVERNMENT HE SAID CITING DIRECT LOBBYING RIGHT UP TO THE HIGHEST LEVELS FOR A PURCHASE FROM US MANUFACTURERS HE DECLINED COMMENT ON WHETHER EUROPEANS WOULD PROTEST EITHER FORMALLY OR INFORMALLY TO THE US GOVERNMENT SOME OFFICIALS OF AIRBUS AND ITS EUROPEAN MEMBER COMPANIES HAVE ALSO SUGGESTED THAT RECENT US EFFORTS TO RESTRUCTURE 92 BILLION IN SAUDI PAYMENTS FOR US WEAPONS WERE UNFAIRLY INFLUENCING THE DECISION ON WHAT AIRLINERS TO BUY US INDUSTRY OFFICIALS HAVE MAINTAINED THAT THE PRESIDENT AND OTHER FEDERAL OFFICIALS ARE ONLY TRYING TO ENSURE A LEVEL PLAYING FIELD FOR THE CONTEST HOWEVER ONE PERSON FAMILIAR WITH US GOVERNMENT PLANS TO PARTICIPATE IN THE ANNOUNCEMENT SUGGESTED THAT EVEN IF THE US HAD DONE NOTHING UNFAIR GOVERNMENT INTERFERENCE IS WHAT IT'S GOING TO SOUND LIKE FOR THE CLINTON ADMINISTRATION THE SUCCESSFUL CAMPAIGN TO ENCOURAGE PURCHASES FROM US MANUFACTURERS HAS BEEN SEEN AS ESSENTIAL TO BUOYING THE PRESIDENT'S POPULARITY ON THE WEST COAST MCDONNELL DOUGLAS'S COMMERCIALJET UNIT IS BASED IN LONG BEACH CALIF FACTORIES THERE HAVE BEEN RAVAGED BY THE LOSS OF MORE THAN 25000 JOBS AND THERE HAVE BEEN SERIOUS CONCERNS WITHIN THE COMPANY AND AMONG OUTSIDERS ABOUT HOW MCDONNELL DOUGLAS CAN SUSTAIN PRODUCTION OF BOTH ITS SMALL AND LARGE JETLINER TYPES OVER THE NEXT FEW YEARS A BIG ORDER FROM SAUDIA WILL HELP THE COMPANY SAID TASSOS PHILLIPAKOS A CREDIT ANALYST FOR MOODY'S INVESTOR SERVICES BUT IT WILL TAKE MUCH MORE THAN THAT FOR DOUGLAS TO BE A LONGTERM SURVIVOR BOEING ALSO HAS BEEN STAGGERED BY THE SHARP DOWNTURN IN AIRCRAFT ORDERS WHICH HAS LED IT TO CUT ITS PRODUCTION RATES TWICE IN THE PAST YEAR YESTERDAY BOEING ANNOUNCED IT WOULD FURTHER ADJUST ITS RATES EARLY IN 1995 SLOWING PRODUCTION OF SMALLER 757 JETS TO FOUR A MONTH FROM FIVE WHILE INCREASING MONTHLY PRODUCTION OF ITS WIDEBODY 767 TO FOUR FROM THREE RON WOODARD PRESIDENT OF THE BOEING COMMERCIAL AIRPLANE GROUP SAID IT IS TOO EARLY TO DETERMINE THE IMPACT ON EMPLOYMENT ANY NEGATIVE IMPACT HOWEVER IS EXPECTED TO BE PARTLY OFFSET BY NEXT YEAR'S DELIVERIES OF THE FIRST ADVANCED 777 AIRLINERS BOEING'S TWINENGINE LINE ALSO GOT A BOOST YESTERDAY FROM KAZAKHSTAN AIRLINES THE AIRLINE IN THE FORMER SOVIET STATE ORDERED FOUR EXTENDEDRANGE 767300 MODELS WHICH WOULD PUT THE TOTAL ORDER AT 360 MILLION ACCORDING TO COMPANY PRICE LISTS 9402160113 940216 BUSINESS BRIEF AIR FRANCE CARRIER OFFERS EMPLOYEES A STOCKOWNERSHIP PLAN STATEOWNED AIR FRANCE PROPOSED A STOCK OWNERSHIP PLAN TO EMPLOYEES IN AN INTERNAL MEMO DISTRIBUTED YESTERDAY OFFICIALS AT UNIONS REPRESENTING AIR FRANCE WORKERS SAID THE STOCK OFFER PART OF A BROADER RESTRUCTURING EFFORT FOR THE AILING CARRIER WOULD COME IN EXCHANGE FOR RELINQUISHMENT OF UNSPECIFIED EMPLOYEE ADVANTAGES IT WASN'T CLEAR WHETHER MANAGEMENT IS ASKING FOR SALARY CUTS AIR FRANCE WOULDN'T COMMENT ON THE MEMO'S CONTENT UNION OFFICIALS SAID THE MEMO ALSO CONFIRMED EXPECTATIONS THAT CHAIRMAN CHRISTIAN BLANC WOULD SEEK A BIG CAPITAL INJECTION FOR THE AIRLINE THOUGH NO NUMBERS WERE GIVEN 9402160112 940216 INTERNATIONAL BRIEF KOBE STEEL LTD AGREEMENT SIGNED WITH TI TO DEVELOP SELL CLAD METALS JAPAN'S KOBE STEEL LTD AND TEXAS INSTRUMENTS INC SIGNED AN AGREEMENT FOR MARKETING AND APPLICATIONS DEVELOPMENT OF CLAD METALS COMPOSITES OF TWO OR MORE DISSIMILAR METALS THE COMPANIES SAID TUESDAY UNDER THE AGREEMENT KOBE STEEL WILL BE RESPONSIBLE FOR THE JAPANESE MARKETING AND APPLICATIONS DEVELOPMENT OF THE CLAD METALS PRODUCED BY TI'S METALLURGICAL MATERIALS DIVISION DEMAND FOR CLAD METAL PRODUCTS IS EXPECTED TO INCREASE IN THE AUTOMOTIVE FIELD THE COMPANIES SAID AS USE OF LIGHTWEIGHT ALUMINUM VEHICLES RISES THE USE OF ALUMINUM CLAD STEEL ALLOWS ALUMINUM SHEET COMPONENTS TO BE WELDED TO THE STEEL STRUCTURE OF AUTOMOBILES USING CONVENTIONAL SPOTWELDING TECHNIQUES THE COMPANIES SAID ALTHOUGH KOBE STEEL AND TI ARE STUDYING PRODUCTION OF CLAD METALS IN JAPAN ALL MATERIALS COVERED BY THE AGREEMENT WILL BE PRODUCED FOR NOW AT A TI FACILITY IN ATTLEBORO MASS THE COMPANIES SAID 9402160111 940216 HEARD ON THE STREET FOR THOSE WHO SEE GROWTHSTOCK REBOUND TWO TRADED FUNDS ARE BARGAIN SPRINGBOARDS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU LIKE GROWTH STOCKS YOU'LL LOVE GENERAL AMERICAN INVESTORS AND JUNDT GROWTH FUND THESE TWO PUBLICLY TRADED MUTUAL FUNDS HAVE LANGUISHED OVER THE PAST TWO YEARS AS THEIR GROWTHSTOCK STYLE OF INVESTING HAS FALLEN FROM FAVOR FOR PEOPLE WHO THINK GROWTH STOCKS WILL BOUNCE BACK THE TWO FUNDS OFFER A CHEAP WAY TO PLAY A REBOUND FUND ANALYSTS SAY I'M NOT NORMALLY A BIG FAN OF GROWTHSTOCK INVESTING SAYS DAVID TEPPER OF TEPPER CAPITAL MANAGEMENT A SAN FRANCISCO INVESTMENT ADVISER BUT HE THINKS GENERAL AMERICAN AND JUNDT CURRENTLY OFFER THE BEST VALUE AMONG PUBLICLY TRADED FUNDS ALSO KNOWN AS CLOSEDEND FUNDS THESE FUNDS HAVE TWO DIFFERENT VALUES THE PRICE OF THE FUND'S PUBLICLY TRADED SHARES AND THE FUND'S NET ASSET VALUE WHICH IS THE VALUE OF THE FUND'S PORTFOLIO EXPRESSED ON A PERSHARE BASIS ANALYSTS TYPICALLY ADVOCATE BUYING A FUND WHEN ITS SHARES ARE TRADING BELOW THE FUND'S NET ASSET VALUE THAT'S THE CASE RIGHT NOW WITH BOTH JUNDT AND GENERAL AMERICAN JUNDT'S SHARES CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 14 1/2 UP 1/8 BUT 7 BELOW THE 1556 PERSHARE PORTFOLIO VALUE LATE FRIDAY GENERAL AMERICAN CLOSED AT 21 3/4 ON THE BIG BOARD UP 3/8 AN 11 DISCOUNT TO ITS 2433 PORTFOLIO VALUE IF YOU GO WITH THE THESIS THAT GROWTH HAS BEEN BEATEN UP PRETTY BADLY THEN IT MAKES SENSE TO LOOK AT FUNDS THAT ARE AT DISCOUNTS SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER THE CHEAPER YOU CAN GET THEM THE LESS DOWNSIDE RISK YOU'LL HAVE GOING FORWARD BOTH FUNDS HAVE HAD LACKLUSTER RETURNS RECENTLY GENERAL AMERICAN WHICH WAS LAUNCHED IN 1927 AND HAS ONE OF THE BEST CLOSEDENDFUND TRACK RECORDS FOR THE PAST 10 YEARS HAS GAINED JUST 12 FOR THE TWO YEARS THROUGH 1993 JUNDT RUN BY HIGHLY REGARDED MINNEAPOLIS STOCK PICKER JAMES JUNDT WAS LAUNCHED IN LATE 1991 NEAR THE HEIGHT OF THE MARKET'S ENTHUSIASM FOR GROWTH STOCKS BUT OVER THE PAST TWO CALENDAR YEARS IT HAS RETURNED 07 FAR BEHIND THE 18 GAIN FOR THE STANDARD & POOR'S 500 MR JUNDT BELIEVES HIS FUND WILL BENEFIT AS INVESTORS SHIFT AWAY FROM ECONOMYSENSITIVE STOCKS THE MARKET'S LEADERS IN RECENT YEARS AND TOWARD GROWTH STOCKS YOU'VE HAD TWO YEARS OF SIGNIFICANT OUTPERFORMANCE BY CYCLICALS MR JUNDT SAYS AS CYCLICAL EARNINGS START TO PLATEAU THE EARNINGS AT GROWTH COMPANIES WILL LOOK BETTER AND BETTER JUNDT MAY TRADE AT A SMALLER DISCOUNT THAN GENERAL AMERICAN BUT SOME ANALYSTS THINK IT'S EQUALLY ATTRACTIVE IN BOTH AUGUST 1992 AND AUGUST 1993 THE FUND HELD TENDER OFFERS ALLOWING INVESTORS TO SELL SHARES BACK TO THE FUND FOR THE SHARES' FULL PORTFOLIO VALUE THE TENDER OFFERS ARE AT THE DISCRETION OF THE FUND'S BOARD BUT ANALYSTS BELIEVE THAT THE ANNUAL SHARE BUYBACKS WILL CONTINUE THEY'VE BEEN EXTREMELY HONORABLE ABOUT HOLDING A TENDER OFFER ONCE A YEAR SAYS MR TEPPER THE SAN FRANCISCO INVESTMENT ADVISER AND THEY'VE RAISED THE PROSPECT OF CONVERTING JUNDT INTO A REGULAR MUTUAL FUND IF JUNDT CONTINUES THE TENDER OFFERS OR BECOMES A REGULAR MUTUAL FUND SHAREHOLDERS SHOULD COME OUT AHEAD BECAUSE THEY WILL BE ABLE TO CASH IN THEIR SHARES AT FULL VALUE THUS EVEN IF THE FUND'S PORTFOLIO VALUE STAGNATES IN THE MONTHS AHEAD INVESTORS WILL AT LEAST MAKE THE DIFFERENCE BETWEEN SAY A 14 1/2 SHARE PRICE AND A 1556 PORTFOLIO VALUE JUNDT IS HEAVILY INVESTED IN SOFTWARE NETWORKING CELLULARTELEPHONE AND RETAILING STOCKS ITS BIGGEST POSITIONS INCLUDE BEST BUY INTEL SYBASE AND BRITAIN'S VODAFONE GROUP HEALTHCARE STOCKS USUALLY A STAPLE FOR GROWTHSTOCK FUNDS ACCOUNT FOR LESS THAN 3 OF ASSETS GENERAL AMERICAN'S PORTFOLIO IS QUITE DIFFERENT AT YEAR'S END FUND MANAGER WILLIAM GEDALE HAD 26 IN HEALTHCARE STOCKS AT THAT TIME THE FUND'S TWO LARGEST POSITIONS WERE RETAILERS HOME DEPOT AND WALMART STORES WHICH TOGETHER ACCOUNTED FOR 13 OF FUND ASSETS WE'RE LOOKING FOR A HURDLE RATE OF AT LEAST 15 ANNUAL EARNINGS GROWTH IN EACH OF THE COMPANIES WE OWN SAYS MR GEDALE IN THE CASE OF HOME DEPOT WE'RE LOOKING FOR 25 TO 30 EARNINGS GROWTH WITH WALMART WE'RE LOOKING FOR 20 PER ANNUM SO WHICH FUND SHOULD YOU PURCHASE GENERAL AMERICAN OR JUNDT MORNINGSTAR'S MS GILLIS SUGGESTS BUYING BOTH YOU'VE GOT TWO LARGECAP GROWTH FUNDS WHERE YOU DON'T HAVE THAT MUCH OVERLAP AT ALL SHE SAYS YOU'VE GOT TWO QUITE DIFFERENT WAYS TO PLAY A REBOUND IN LARGECAP GROWTH STOCKS 9402160110 940216 50OFF STORES INC SURPRISING ANALYSTS SEES 4THQUARTER LOSS SAN ANTONIO PUNISHED BY MARKETING MISTAKES WEAKNESS IN THE APPAREL MARKET AND THEFT 50OFF STORES INC SAID IT EXPECTS TO POST A NET LOSS FOR ITS FOURTH QUARTER ENDED JAN 28 OF BETWEEN 22 MILLION AND 27 MILLION OR UP TO 27 CENTS A SHARE BASED ON PRELIMINARY RESULTS THE LOSS SHARPLY BELOW CONSENSUS ANALYSTS'S ESTIMATES OF EARNINGS OF SEVEN CENTS A SHARE FOR THE QUARTER AS COMPLIED BY ZACKS INVESTMENT RESEARCH SENT 50OFF COMMON SHARES DOWN 625 CENTS TO 575 IN NASDAQ STOCK MARKET TRADING THE NET LOSS WOULD COMPARE WITH NET INCOME OF 800000 OR EIGHT CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE QUARTER ROSE 11 TO 686 MILLION FROM 616 MILLION THE COMPANY SAID FOR THE FISCAL YEAR THE DISCOUNT APPAREL RETAILER SAID IT EXPECTS TO REPORT A NET LOSS OF ABOUT 9 MILLION OR ABOUT 90 CENTS A SHARE COMPARED WITH NET INCOME OF 48 MILLION OR 45 CENTS A SHARE A YEAR EARLIER DESPITE A 10 RISE IN SALES TO 1997 MILLION FROM 181 MILLION THIS YEAR'S RESULTS WILL INCLUDE A PRETAX CHARGE OF 21 MILLION FROM A CHANGE IN ACCOUNTING SAID PAT L ROSS CHIEF FINANCIAL OFFICER UNDER THAT CHANGE 50OFF WROTE OFF ALL UNAMORTIZED PREOPENING STORE COSTS FOR THE YEAR IN THE JUSTENDED FOURTH QUARTER IN THE FUTURE THE COMPANY SAID IT WILL WRITE OFF PREOPENING COSTS IN THE FIRST TWO MONTHS AFTER A STORE OPENS RATHER THAN IN THE FIRST 12 MONTHS AS IT HAD BEEN DOING MR ROSS SAID 50OFF ALSO WAS FORCED TO TAKE HIGHERTHANEXPECTED MARKDOWNS SLASHING GROSS PROFIT MARGINS AS THE COMPANY REVAMPED ITS APPAREL LINES WE WEREN'T CARRYING THE BRANDS OUR CUSTOMERS WANTED AT THE PRICES THEY WANTED TO PAY HE SAID WE'RE CORRECTING OUR MARKETING FOCUS BRINGING IN MORE BRANDED GOODS AND BETTER QUALITY GOODS MR ROSS ALSO SAID THAT SHRINKAGE OR THEFT AND OTHER LOSSES WORSENED FORCING THE COMPANY TO TAKE AN ADDITIONAL 11 MILLION RESERVE AS A YEAREND ADJUSTMENT THE COMPANY WILL REPORT FINAL RESULTS FOR FISCAL 1994 ON MARCH 3 9402160109 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY GAMES STATS PERCENTAGE OF TOP WOMEN SKIERS WHO REFUSED TO ATTEND TRAINING THERE BECAUSE IT WAS TOO EASY 75 RACE WAS MOVED TO THE MORE CHALLENGING HILL AT KVITFJELL 9402160108 940216 THE PARAMOUNT TAKEOVER WALL STREET'S FINAL ANALYSIS MIGHT MADE RIGHT BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG GUY WON FOR ALL THE TALK OF CLASHING EGOS AND GRAND CORPORATE ALLIANCES IT WAS SHEER SIZE AND FINANCIAL CLOUT THAT DETERMINED THE OUTCOME OF THE 10 BILLION TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC THAT'S THE LESSON MANY INVESTMENT BANKERS AND ANALYSTS DREW YESTERDAY AT THE END OF THE MONUMENTAL FIVEMONTH BATTLE THEY SAY IT WAS THE GREATER SIZE OF VIACOM INC PARTICULARLY AFTER IT AGREED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORP THAT ENABLED VIACOM TO MAKE A STRONGER BID FOR PARAMOUNT THAN QVC NETWORK INC THE SIZE MISMATCH BETWEEN VIACOM AND QVC WAS OFTEN OBSCURED BY THE EXCITEMENT SURROUNDING QVC CHAIRMAN BARRY DILLER WHO PROMISED THAT HE COULD WRING MORE LONGTERM VALUE FROM PARAMOUNT'S ASSETS THAN VIACOM THE FACT IS THE GUY WHO HAD MORE MONEY WON SAYS ONE INVESTMENT BANKER INVOLVED IN THE DEAL MR DILLER ASIDE THIS BANKER SAID QVC BIDDING FOR PARAMOUNT WAS LIKE THE MINNOW SWALLOWING THE WHALE LISBETH BARRON WHO FOLLOWS MEDIA COMPANIES AT SG WARBURG & CO SAYS THAT VIACOM'S BREADTH OF ASSETS WITH CABLE TV PROGRAMMING PLUS THE PLANNED ADDITION OF BLOCKBUSTER'S VIDEOTAPE RENTAL BUSINESS GAVE VIACOM'S BID A PSYCHOLOGICAL SOLIDITY BUT THE NUMBERS ALSO TELL THE STORY ACCORDING TO THE VALUE LINE INVESTMENT SURVEY QVC HAD ESTIMATED 1993 REVENUE OF 126 BILLION AND A YEAREND STOCKMARKET VALUE OF 216 BILLION VIACOM BY CONTRAST HAD ESTIMATED 1993 REVENUE OF 204 BILLION AND ITS YEAREND STOCKMARKET VALUE WAS 56 BILLION DWARFING QVC QVC'S LAST BID FOR PARAMOUNT CALLED FOR IT TO ISSUE ABOUT 97 MILLION ADDITIONAL QVC SHARES AND WARRANTS NEARLY TWICE THE 55 MILLION QVC SHARES CURRENTLY OUTSTANDING BY COMPARISON VIACOM IS PROPOSING TO ISSUE ABOUT 108 MILLION ADDITIONAL SHARES AND WARRANTS TO BUY PARAMOUNT LESS THAN THE 124 MILLION VIACOM SHARES ALREADY OUTSTANDING MR DILLER TRIED TO MAKE UP FOR QVC'S MORE LIMITED FINANCIAL RESOURCES BY NEGOTIATING INVESTMENTS FROM OUTSIDE PARTNERS WHICH EVENTUALLY TOTALED 35 BILLION BUT THE COBBLEDTOGETHER ALLIANCE BECAME TOO CUMBERSOME WHEN IT CAME TIME TO STRENGTHEN QVC'S BID TO MATCH VIACOM'S PROMISE TO MAKE ADDITIONAL PAYMENTS IF VIACOM STOCK DOESN'T PERFORM WELL WHEN HE EXPLORED STRENGTHENING HIS BID BY ARRANGING FOR FUTURE PURCHASES OF QVC'S STOCK MR DILLER FACED A SPLIT BETWEEN HIS OUTSIDE INVESTORS BELLSOUTH CORP WHICH HAD ALREADY AGREED TO INVEST 2 BILLION IN QVC WAS RELUCTANT TO BUY MORE QVC STOCK BECAUSE OTHER QVC PARTNERS WERE BALKING WHEN VIACOM CHAIRMAN SUMNER REDSTONE NEGOTIATED HIS 84 BILLION MERGER WITH BLOCKBUSTER LAST MONTH HE GOT ACCESS TO BLOCKBUSTER'S STRONG CASH FLOW AND NEARLY DEBTFREE BALANCE SHEET BECAUSE HE HELD 85 OF VOTING CONTROL DUE TO HIS OWNERSHIP OF SUPERVOTING VIACOM CLASS A SHARES MR REDSTONE WAS ABLE TO NEGOTIATE A DEAL IN WHICH HE WOULD ISSUE STOCK TO ACQUIRE BLOCKBUSTER SUMNER HAD ONE BIG CHIP TO PLAY WITH HE COULD ISSUE A BOATLOAD OF STOCK WITHOUT GIVING UP CONTROL SAID FREDERIC SEEGAL COHEAD OF CORPORATE FINANCE AT SALOMON BROTHERS INC BARRY DIDN'T HAVE THAT OPTION BARRY COULDN'T DO WHAT HE HAD TO DO WITHOUT GIVING UP CONTROL MR DILLER ARGUING THAT THE STOCK HE WOULD BE ISSUING TO ACQUIRE PARAMOUNT SHOULD TRADE AT A PREMIUM BASED ON HIS TRACK RECORD FOR CREATING ENTERTAINMENT PROPERTIES MADE A BID IN WHICH QVC COMMON STOCK REPRESENTED NEARLY 30 OF THE VALUE WITHOUT ANY PROTECTION AGAINST A WEAK PERFORMANCE BY QVC SHARES BUT VIACOM OFFERED A LESS VOLATILE MIXTURE OF CASH AND SECURITIES THAT WAS COMPOSED OF ONLY 20 COMMON STOCK AND UNLIKE QVC VIACOM ADDED A SECURITY THAT GAVE EXTRA VALUE IF VIACOM'S STOCK DIDN'T PERFORM WELL OVER THE NEXT ONE TO THREE YEARS MR DILLER MAY HAVE BEEN RELUCTANT TO MATCH VIACOM'S STOCKPERFORMANCE GUARANTEE BECAUSE THE STOCK WAS RIDING MORE ON HIS OWN PERCEIVED ABILITIES TO CREATE FUTURE EARNINGS THAN ON ANY CURRENT EARNINGS OR CASH FLOW COMING IN FROM EXISTING BUSINESSES ALTHOUGH THE BLOCKBUSTER DEAL WILL REQUIRE THE ISSUANCE OF 177 MILLION MORE VIACOM SHARES WHEN THAT HAPPENS VIACOM WILL BE GAINING ACCESS TO A HUGE SOURCE OF CURRENT CASH FLOW WHILE THE BLOCKBUSTER ACQUISITION CARRIES CLEAR LONGTERM RISKS THAT NEW TECHNOLOGIES WILL OVERRUN THE TAPERENTAL BUSINESS ANALYSTS SAY THE INCOMING CASH SHOULD STABILIZE THE COMBINED COMPANIES' FINANCES IN THE SHORT RUN THE EPIC PARAMOUNT TAKEOVER BATTLE ALSO MARKED THE FIRST APPEARANCE OF HUGE ALLIANCES BETWEEN COMPANIES IN DIFFERENT SECTORS OF THE MEDIA BUSINESS PARTICULARLY REGIONAL BELL OPERATING COMPANIES SOME BANKERS BELIEVE THAT SUCH ALLIANCES ARE WELL SUITED TO THE FAST EVOLVING TECHNOLOGIES OF THE MEDIA BUSINESS WHERE COMPANIES WITH DIFFERENT DELIVERY MECHANISMS FROM CABLE TV TO TELECOMMUNICATIONS MAY JOIN FORCES TO GAIN A CRITICAL ASSET LIKE THE PARAMOUNT MOVIE STUDIO THAT FILLS THEIR NEED FOR PROGRAMMING 9402160107 940216 BUSINESS BRIEF NORTHWEST AIRLINES NEW WORLD BUSINESS CLASS BEGINS WITH PARTNER KLM NORTHWEST AIRLINES AND ITS PARTNER KLM ROYAL DUTCH AIRLINES LAUNCHED A BUSINESS CLASS THAT WILL BE OFFERED ON BOTH CARRIERS' INTERNATIONAL ROUTES NORTHWEST SAID THE NEW SERVICE CALLED WORLD BUSINESS CLASS IS AN OUTGROWTH OF A JOINT BUSINESS CLASS INTRODUCED ON THE TWO AIRLINES' MINNEAPOLISAMSTERDAM AND BOSTONAMSTERDAM FLIGHTS A YEAR AGO WORLD BUSINESS CLASS NOW OFFERS MORE LEGROOM UPGRADED MENUS IMPROVED AMENITY KITS AND STATEOFTHEART PERSONAL ENTERTAINMENT SYSTEMS KLM HAS A 75 VOTING STAKE IN CLOSELY HELD NORTHWEST WHICH IS BASED IN ST PAUL MINN THE TWO CARRIERS HAVE US TRANSPORTATION DEPARTMENT ANTITRUST IMMUNITY TO SET PRICES AND CONDUCT MARKETING JOINTLY BASED IN AMSTERDAM KLM IS PARTLY OWNED BY THE DUTCH GOVERNMENT 9402160106 940216 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN HECTOR J MOTRONI HEAD OF CORPORATE QUALITY AND ORGANIZATIONAL EFFECTIVENESS WAS NAMED A CORPORATE VICE PRESIDENT AT THIS MAKER OF BUSINESS EQUIPMENT MR MOTRONI 50 YEARS OLD IS ONE OF 24 CORPORATE VICE PRESIDENTS AT THE COMPANY 9402160105 940216 ONTARIO PLANS REVIEW OF RULES GOVERNING MUTUALFUND SALES TORONTO EDWARD WAITZER CHAIRMAN OF THE ONTARIO SECURITIES COMMISSION SAID HE HAS COMMISSIONED A REVIEW OF THE REGULATIONS GOVERNING MUTUALFUND SALES IN THE PROVINCE MR WAITZER SAID OSC COMMISSIONER GLORIANNE STROMBERG WILL TRY TO IDENTIFY ANY PROBLEMS THAT AFFECT THE INVESTMENTFUND INDUSTRY AND MUTUALFUND INVESTORS AND WHAT REMEDIES MIGHT BE REQUIRED THIS IS AN INDUSTRY WHOSE DRAMATIC GROWTH HAS CAUSED IT TO OUTSTRIP ITS REGULATORY FRAMEWORK MR WAITZER SAID HE SAID HE DOESN'T HAVE ANY PRECONCEIVED IDEAS AS TO WHAT MS STROMBERG MAY IDENTIFY AS PROBLEMS OR RECOMMENDATIONS BUT HE VOICED CONCERN ABOUT THE EXPECTATIONS PLACED ON INSTITUTIONAL INVESTORS WITH RESPECT TO CORPORATE GOVERNANCE ABOUT THE LEVEL OF KNOWLEDGE AND SOPHISTICATION AMONG MUTUALFUND INVESTORS AS WELL THE POSSIBLE FUTURE ROLE OF SELFREGULATORY ORGANIZATIONS IN MONITORING THE FUTURE DEVELOPMENT OF THE MUTUALFUND INDUSTRY ONE QUESTION LIKELY TO BE A SUBJECT OF THE REVIEW IS WHETHER THE INVESTMENT FUNDS INSTITUTE OF CANADA AN INDUSTRY ASSOCIATION COULD DEVELOP INTO A FULLFLEDGED SELFREGULATORY ORGANIZATION HE SAID MR WAITZER SAID HE EXPECTS MS STROMBERG TO REPORT BACK TO THE COMMISSION BEFORE THE END OF THE SUMMER 9402160104 940216 COMMERCE CHIEF SAYS US ISN'T SEEKING TO LIFT YEN HINTS RISE ISN'T UNWELCOME BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BEHIND THE CLINTON ADMINISTRATION'S HANDSOFF POLICY ON THE YEN OFFICIALS SEE THE CURRENCY'S RISE AS A WAY OF INTENSIFYING PRESSURE ON JAPAN TO IMPORT MORE FROM THE US COMMERCE SECRETARY RONALD BROWN SAID YESTERDAY THERE IS NO DELIBERATE EFFORT BY THE US TO BOOST THE YEN BUT HE HINTED AT THE ADVANTAGES OF A POLICY OF BENIGN NEGLECT THAT DOESN'T COUNTERACT THE HIGHER YEN IN AN INTERVIEW WITH CABLE NEWS NETWORK MR BROWN SAID THE US IS PRESSING JAPAN TO STIMULATE ITS ECONOMY A MOVE THAT WOULD INCREASE ITS DEMAND FOR IMPORTS CLEARLY FACTORS THAT HAVE AN INFLUENCE ON THAT ARE ONES THAT WE ARE GOING TO WATCH CLOSELY MR BROWN SAID A STRONGER YEN WHICH MAKES JAPANESE PRODUCTS MORE EXPENSIVE IN WORLD MARKETS AND SLOWS JAPAN'S EXPORTDRIVEN ECONOMY WILL INCREASE PRESSURES ON TOKYO TO STIMULATE DOMESTIC DEMAND WITH A COMBINATION OF LOWER INTEREST RATES TAX CUTS AND MORE GOVERNMENT SPENDING THE STRONGER YEN INCREASES PRESSURE ON TOKYO TO PUMP UP THEIR ECONOMY SO THAT JAPANESE CONSUMERS AND BUSINESS PEOPLE BUY MORE GOODS SAID IRWIN KELLNER CHEMICAL BANK'S CHIEF ECONOMIST FOLLOWING ITS SURGE MONDAY THE YEN LOST A LITTLE GROUND AGAINST THE DOLLAR YESTERDAY AMID SENTIMENT THAT THE US CURRENCY HAD BEEN OVERSOLD FOLLOWING THE FAILURE OF USJAPAN TRADE TALKS IN LATE NEW YORK TRADING THE JAPANESE CURRENCY WAS QUOTED AT 10370 YEN TO THE DOLLAR IN CONTRAST TO ITS LEVEL OF 10265 YEN THE DAY BEFORE ALTHOUGH THE TREASURY SAID LATE MONDAY THAT WE DON'T BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES ANALYSTS SPECULATED ABOUT WHETHER THE US WOULD INTERVENE AGAINST THE YEN IF A CONTINUED RISE CREATES DISORDERLY MARKET CONDITIONS TWICE LAST YEAR ONCE IN APRIL AND ONCE IN AUGUST THE US JOINED THE BANK OF JAPAN IN SELLING YEN TO HALT A RISE IN THE JAPANESE CURRENCY YESTERDAY THE BANK OF JAPAN INTERVENED AGAINST THE YEN WITHOUT SUPPORT FROM THE US DESPITE THE TREASURY'S PAST WILLINGNESS TO INTERVENE TO CALM MARKET DISRUPTION THE US WATCHED MONDAY AS THE YEN SOARED MANY ANALYSTS BELIEVE THE TREASURY WILL LET THE YEN STAY WHERE IT IS OR EVEN RISE FURTHER UNLESS THE ADMINISTRATION AND THE FEDERAL RESERVE SEE SIGNS OF EXCESSIVE VOLATILITY IN THE FINANCIAL MARKETS PARTICULARLY THE BOND MARKETS INFLATIONARY PRESSURES OR WORRIES ABOUT FINANCIAL INSTABILITY IN THE US OR JAPAN ALSO COULD TRIGGER CURRENCYMARKET INTERVENTION I THINK THEY WILL JUST SIT BACK AND LET THE MARKETS PUSH THE YEN UP PREDICTED C FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS THE ONLY QUESTION IS WHETHER THEY INTERVENE TO PUSH THE YEN BACK BELOW 100 LIKE THEY DID LAST AUGUST I DON'T THINK THEY WILL MR BERGSTEN IS A VIGOROUS ADVOCATE OF A STRONGER YEN TO HELP NARROW THE 60 BILLION US TRADE DEFICIT WITH JAPAN MR BERGSTEN USED TO CALL FOR A YEN IN THE 100110TOTHEDOLLAR RANGE BUT HE RECENTLY SUGGESTED A STRONGER YEN IN THE 90TO100 RANGE WITH JAPANESE DOMESTIC DEMAND SO LOW TO GET THE SAME TRADE CORRECTION YOU NEED A SOMEWHAT STRONGER YEN TO HELP SHRINK JAPAN'S TRADE SURPLUS HE SAID TREASURY OFFICIALS HAVE BEEN CAREFUL TO AVOID ANY HINT OF WHAT THEY'LL DO IF THE YEN RESUMES ITS RISE AFTER WHAT TRADERS CALLED PROFITTAKING YESTERDAY BUT THERE ARE TWO REASONS WHY THE US MAY BE SLOW TO INTERVENE IF THE YEN CONTINUES TO RISE FIRST AFTER THE FAILURE OF TRADE TALKS LAST WEEK WASHINGTON WANTS TO KEEP PRESSURE ON TOKYO TO OPEN ITS MARKETS I THINK THE ADMINISTRATION IS GOING TO USE THIS AS THE FIRST STEP IN THE PROCESS OF GETTING JAPAN TO RETHINK ITS POSITION MR KELLNER SAID SECOND SINCE THE US INTERVENED TO HALT A RISING YEN IN AUGUST THE DOLLAR HAS RISEN AGAINST ALL MAJOR CURRENCIES INCLUDING THE YEN UNTIL THE PAST FEW DAYS THE YEN SPURTED TO 101 BRIEFLY MONDAY FROM 10875 IN THE MIDDLE OF LAST WEEK IT THEN HIT AN AIR POCKET AS TRADERS RECAST THEIR HEDGES AND REASSESSED THEIR POSITIONS NO ONE KNOWS WHAT'S GOING TO HAPPEN ONE US OFFICIAL SAID LAWRENCE KUDLOW THE CHIEF ECONOMIST AT BEAR STEARNS & CO FRETS ABOUT THE PSYCHOLOGICAL IMPACT OF A LOWER DOLLAR MY MARKET SENSE TELLS ME THAT IF THE DOLLAR MAKES A NEW LOW UNDER 100 YOU'RE GOING TO SEE A MAJOR BREAK IN THE MARKETS HE SAID I THINK THERE WILL BE A RUN OUT OF THE DOLLAR THAT COULD HURT THE STOCK AND BOND MARKETS HOWEVER US OFFICIALS BELIEVE THAT THE GENERAL ECONOMIC FORCES DURING THE NEXT FEW MONTHS WILL TEND TO FORCE UP THE DOLLAR AGAINST THE YEN BECAUSE THE US ECONOMY IS GROWING WHILE THE JAPANESE ECONOMY IS MIRED IN RECESSION THUS THE NEXT MOVES IN US INTEREST RATES ARE LIKELY TO BE UP WHILE THE NEXT MOVES IN JAPANESE INTEREST RATES ARE LIKELY TO BE DOWN 9402160103 940216 TUESDAY'S MARKETS STOCKS RISE BONDS DRIFT DOLLAR IS UP 183 SHARES CLIMB DESPITE TALK OF TRADE WAR BETWEEN US JAPAN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS CAST ASIDE WORRIES ABOUT THE USJAPANESE TRADE TUSSLE AND BID STOCKS HIGHER BONDS PRICES WERE MIXED AND THE DOLLAR ENDED HIGHER THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 2421 POINTS TO 392827 STANDARD & POOR'S 500STOCK INDEX GAINED 229 TO 47252 AND THE NASDAQ COMPOSITE INDEX RALLIED 467 TO 79012 THE MARKET DID SURPRISINGLY WELL GIVEN THE TRADEWAR TALK BETWEEN THE US AND JAPAN SAID DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS ON MONDAY A DYNAMIC STOCKMARKET RALLY FADED AS TRADE TENSIONS BETWEEN THE US AND JAPAN ESCALATED SENDING THE DOLLAR PLUNGING ALMOST 4 AGAINST THE YEN YESTERDAY AFTER ANOTHER NERVOUS DAY OF TRADING THE DOLLAR RECOVERED SOMEWHAT AGAINST THE YEN BUT JAPANESE STOCKS CONTINUED TO GET HAMMERED THE NIKKEI STOCK AVERAGE PLUNGED 48465 POINTS OR 25 TO 1897460 ON TUESDAY BRINGING ITS LOSS SO FAR THIS WEEK TO 5 SOME ANALYSTS SUGGESTED THAT ONE OF THE REASONS US STOCKS PARTICULARLY ECONOMICALLY SENSITIVE SHARES PERFORMED SO WELL YESTERDAY WAS THE BELIEF THAT A WEAKER DOLLAR MAY BENEFIT CYCLICAL COMPANIES AS THE DOLLAR GOES DOWN IT ONLY HELPS OUR EXPORTERS SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES WHAT'S MORE A STRONGER YEN GIVES SOME US COMPANIES SUCH AS AUTO CONCERNS THE LEEWAY TO RAISE PRICES BECAUSE IT MAKES JAPANESE GOODS MORE EXPENSIVE MR CANELO SAID HE ISN'T PARTICULARLY TROUBLED BY THE RISING TENSIONS BETWEEN THE US AND JAPAN I DON'T THINK THE USJAPANESE TRADE DISPUTE IS REAL HE SAID AND EVEN IF IT GETS MUCH WORSE I FEEL IT WOULD HAVE AN IMPACT ON THE DOLLAR BUT NOT ON THE STOCK MARKET WORLDWIDE STOCK PRICES DROPPED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX FELL 074 TO 11618 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3067 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1198 ISSUES ADVANCED AND 882 DECLINED BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE EDGED SLIGHTLY LOWER THE YIELD STOOD AT 645 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17305 MARKS AND 10370 YEN COMPARED WITH 17273 MARKS AND 10265 YEN MONDAY 9402160102 940216 LEISURE & ARTS THE FALL OF A JAZZ TRUMPETER BY NAT HENTOFF THE CALLS CAME LATE AT NIGHT WHEN THE CLUB HE WAS PLAYING WAS DARK OR WHEN HE WAS DEPRESSED AND NOT PLAYING AT ALL WOODY SHAW A TRUMPET PLAYER AND COMPOSER WAS SOMETIMES SEIZED WITH A CONSUMING DESIRE TO TALK IN QUESTIONS THEY WERE SELDOM ABOUT MUSIC BUT RATHER ABOUT POLITICS RACISM AND EXISTENCE LIKE DUKE ELLINGTON'S SONG WHAT AM I HERE FOR THE CONVERSATIONS WERE CHALLENGING LIKE HIS MUSIC I NEVER COULD BE SURE WHAT WOULD BE AROUND THE NEXT CORNER HE TOOK AT THE TIME IN THE LATE 1970S WOODY SHAW HAD EARNED GREAT RESPECT AMONG MUSICIANS WHO HAD HEARD HIM WITH AMONG OTHERS JOE HENDERSON ART BLAKEY AND COMBOS OF HIS OWN MILES DAVIS NEVER KNOWN FOR EASY PRAISE SAID OF SHAW NOW THERE'S A GREAT TRUMPET PLAYER HE CAN PLAY DIFFERENT FROM ALL OF THEM WOODY PLAYED BOTH IN AND OUT OF THE MAINSTREAM MODERN JAZZ TRADITION HARD BOP AND ALSO FREER MUSIC THAT MADE STRUCTURAL SENSE UNLIKE THE CHAOTIC FLUMMERY OF SOME OF THE EXPERIMENTAL PLAYERS OF THE TIME HIS TEMPERAMENT WAS ESSENTIALLY LYRICAL AS WAS THAT OF A KEY INFLUENCE CLIFFORD BROWN HE COULD BE EXULTANT REFLECTIVE AND ALWAYS PLAYED WITH TOTAL AUTHORITY HE OFTEN IMPROVISED LINES THAT DANCED AND HIS TONE WAS WARM AND CRISP DEXTER GORDON WITH WHOM SHAW WORKED SAID THE THING ABOUT WOODY IS HE'S DONE HIS HOMEWORK HE'S HIP TO LOUIS ARMSTRONG AND COVERS THE WHOLE SPECTRUM SHAW NAMED HIS SON WOODY LOUIS ARMSTRONG SHAW BORN IN NORTH CAROLINA IN 1944 HE GREW UP IN NEWARK NJ HIS FATHER HAD SUNG WITH THE DIAMOND JUBILEE SINGERS THEREBY DEEPENING HIS SON'S ROOTS THROUGH GOSPEL MUSIC BUT SHAW WAS ALSO CURIOUS ABOUT THE EUROPEAN TRADITION AND BECAME A SKILLED CLASSICAL TRUMPET PLAYER HE WANTED TO GO TO JUILLIARD BUT HE TOLD CHUCK BERG IN AN INTERVIEW I COULDN'T HAVE GONE BECAUSE I DIDN'T GRADUATE FROM HIGH SCHOOL HE HAD DROPPED OUT TO GO ON THE ROAD WITH A JAZZ BAND SHAW INFLUENCED A NUMBER OF YOUNG PLAYERS WHO HEARD HIM IN CLUBS AND ON RECORDS WYNTON MARSALIS SHORTLY AFTER HE JOINED ART BLAKEY'S JAZZ MESSENGERS IN 1980 APPLIED FOR AND WAS AWARDED A GRANT TO STUDY WITH SHAW AND RECENTLY ALTO SAXOPHONIST ANTONIO HART PAID TRIBUTE TO SHAW IN HIS NOVUS/RCA ALBUM FOR CANNONBALL AND WOODY PARTICULARLY IN APPRECIATION OF SHAW'S USE OF WIDER INTERVALS THAN HAD BEEN CUSTOMARY AMONG TRUMPET PLAYERS THOSE LEAPS HAVE SINCE BEEN FURTHER DEVELOPED BY WYNTON MARSALIS FOR ALL THE ESTEEM IN WHICH HE WAS HELD BY MUSICIANS WOODY SHAW NEVER BROKE THROUGH IN TERMS OF BIG RECORD SALES THE 1970S WAS AN ORMOLU AGE OF FUSION AND FUNK IN JAZZ AND SHAW WOULD HAVE NONE OF EITHER ALONG WITH THE DIMINISHING MOMENTUM IN HIS CAREER BY THE EARLY 1980S HE HAD GONE THROUGH THE BREAKUP OF HIS MARRIAGE HE DIED IN 1989 JAZZRECORD PRODUCER AND HISTORIAN MICHAEL CUSCUNA A LONGTIME FRIEND OF SHAW RECALLS WHILE RECUPERATING FROM DEPRESSION AND RESULTING SUBSTANCE ABUSE AT HIS PARENTS' HOME IN NEWARK HE VENTURED INTO MANHATTAN TO SEE MAX ROACH AT THE VILLAGE VANGUARD BY THE EARLY MORNING HOURS HE WAS ALONE IN A BROOKLYN SUBWAY STATION WHEN HE FELL INTO A PASSING TRAIN WHICH RESULTED IN A LOST ARM AND AFTER MONTHS IN THE HOSPITAL HIS DEATH IN MAY 1989 WHETHER HIS EYESIGHT HE WAS LEGALLY BLIND FROM RETINITIS PIGMENTOSA WHICH HE HAD ALL HIS LIFE OR NEW YORK TRANSIT'S RANDOM VIOLENCE CAUSED THE ACCIDENT IS SOMETHING WE WILL NEVER KNOW AND NO IT WAS NOT SUICIDE AS ANYONE WHO KNEW WOODY CAN TELL YOU CUSCUNA IS ONE OF THE PRINCIPALS IN MOSAIC RECORDS WHICH PRODUCES EXPERT REISSUES OF OTHERWISE UNOBTAINABLE RECORDS A LASTING ACHIEVEMENT BY MOSAIC IS THE COMPLETE CBS STUDIO RECORDINGS OF WOODY SHAW THREE CDS 49 FOUR LPS 44 BOTH PRICES INCLUDE POSTAGE MOSAIC RECORDS 35 MELROSE PLACE STAMFORD CONN 06092 WOODY SHAW USED TO RECALL THAT WHEN HIS FUTURE SEEMED LIMITLESS FREDDIE HUBBARD AND LEE MORGAN BOTH MUCH ESTEEMED JAZZ TRUMPET PLAYERS TOLD HIM HE WOULD BE THE NEXT GREAT JAZZ HORN IN THE LINE OF LOUIS ARMSTRONG ROY ELDRIDGE DIZZY GILLESPIE MILES DAVIS AND CLIFFORD BROWN LISTENING TO WOODY ON TRUMPET FLUEGELHORN AND CORNET THROUGHOUT THESE 197779 PERFORMANCES ON THE MOSAIC SET AFFIRMS THE JUDGMENT OF HUBBARD MORGAN AND MILES DAVIS EVEN IF MOST OF THE JAZZ PUBLIC DIDN'T CATCH ON MUCH OF THE MUSIC CONSISTS OF ORIGINALS BY SHAW BUT THERE ARE ALSO STANDARDS AMONG THE YOUNG SIDEMEN ARE MUSICIANS WHO HAVE SINCE BECOME FIGURES OF JAZZ CONSEQUENCE AMONG THEM TROMBONIST STEVE TURRE AND DRUMMER VICTOR LEWIS WOODY SHAW'S IS THE DOMINANT VOICE WITH ACUTE MUSICAL INTELLIGENCE DARING AND A CONSTANT COMPASS HE BRINGS IT ALL TOGETHER WITH ABIDING LYRICISM I MISS THOSE LATENIGHT CALLS THEY WERE NOT COMPLAINTS THEY WERE QUESTIONS AND WOODY SHAW LEFT US WITH THE HARDEST QUESTION OF ALL WHAT WAS HE DOING IN THAT BROOKLYN SUBWAY STATION AND HOW DID HE FALL 9402160101 940216 FOUR MUSIC DISTRIBUTORS SETTLE SUITS OVER USED CDS NEW YORK FOUR MUSIC DISTRIBUTION COMPANIES SAID THEY SETTLED LAWSUITS CHALLENGING THEIR EFFORTS TO BAR MUSIC RETAILERS FROM SELLING USED COMPACT DISCS THE MUSIC COMPANIES LAST YEAR HAD ATTEMPTED TO CURTAIL THE GROWTH OF USED CD SALES IN RETAIL STORES BY WITHHOLDING ADVERTISING DOLLARS TO RETAILERS THAT TRADED IN THE USED CDS TERMS OF THE SETTLEMENT WEREN'T DISCLOSED THE FOUR MUSIC COMPANIES SAID THEY FELT THEIR POLICIES WERE LAWFUL BUT THEY FEARED THE DISPUTE WOULD SOUR RELATIONS WITH RETAILERS THE MUSIC COMPANIES INCLUDED SONY CORP'S SONY MUSIC ENTERTAINMENT INC THE WARNER/ELEKTRA/ATLANTIC CORP UNIT OF TIME WARNER INC THORN EMI PLC'S CEMA DISTRIBUTION AND UNI DISTRIBUTION A PART OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC 9402160100 940216 TECHNOLOGY & HEALTH AIDS CASE RATE IS SAID TO PEAK IN SAN FRANCISCO BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE ANNUAL TOLL OF NEW AIDS CASES HAS PEAKED IN THIS HARDHIT CITY AND NEW CASES WILL DECLINE OVER THE NEXT SEVERAL YEARS LOCAL HEALTH OFFICIALS SAID BUT THE NATIONWIDE EPIDEMIC WHILE SLOWING FROM THE RAPACIOUS RATE OF THE 1980S HAS YET TO PEAK FEDERAL OFFICIALS CAUTIONED CITY HEALTH OFFICIALS HERE CREDITED AIDSPREVENTION CAMPAIGNS TARGETED AT THE GAY COMMUNITY BEGINNING A DECADE AGO FOR ACHIEVING BEHAVIOR CHANGES THAT SLOWED AIDS TRANSMISSION THE EPIDEMIC'S COOLING IS MEASURABLE ONLY NOW BECAUSE THE DISEASE HAS A 10YEAR INCUBATION PERIOD BETWEEN INFECTION WITH HUMAN IMMUNODEFICIENCY VIRUS HIV AND THE DEVELOPMENT OF AIDS RESEARCHERS ALSO CITE A CHANGE IN STATISTICAL RECORDKEEPING THE AIDS CASE DEFINITION WAS EXPANDED LAST YEAR ALLOWING DOCTORS TO DIAGNOSE HIVINFECTED PATIENTS WITH AIDS AS SOON AS THEIR IMMUNE CELLS DECLINE TO ONEFIFTH THE NORMAL LEVEL INSTEAD OF WAITING FOR INFECTIONS TO APPEAR THIS CHANGE HAS ACCELERATED THE EPIDEMIC'S CURVE BY ABOUT A YEAR AND A HALF RESULTING IN AN EARLIER PEAK IN CASELOAD ABOUT 28000 PEOPLE OR 4 OF THE CITY'S POPULATION HAVE HIV IN SAN FRANCISCO GIVING THE DEADLY VIRUS A HIGHER PREVALENCE HERE THAN IN ANY OTHER MAJOR US CITY THE SAN FRANCISCO RESEARCHERS SAID AIDS HAS BEEN DIAGNOSED IN 18684 SAN FRANCISCANS ABOUT HALF OF WHOM HAVE DIED BUT ANNUAL NEW AIDS CASES PEAKED AT ABOUT 3300 IN 1992 AND NOW WILL SUBSIDE TO AROUND 1200 A YEAR BY THE LATE 1990S RESEARCHERS SAID THESE FIGURES DEMONSTRATE THE BENEFITS OF COMPREHENSIVE TARGETED PREVENTION EFFORTS WHICH ALTERED THE COURSE OF THE AIDS EPIDEMIC IN SAN FRANCISCO SAID MITCH KATZ DIRECTOR OF THE SAN FRANCISCO PUBLIC HEALTH DEPARTMENT'S AIDS OFFICE DESPITE THE DECLINE THE STUDY'S AUTHOR GEORGE LEMP CAUTIONED WE EXPECT THE EPIDEMIC TO CONTINUE WELL BEYOND THE YEAR 2000 MOREOVER HE WARNED THAT CONTINUED HIGHRISK BEHAVIOR AMONG YOUNG GAY AND BISEXUAL MEN MEANS THAT WE COULD SEE A RESURGENCE OF THE EPIDEMIC AT SOME POINT IN THE FUTURE AT THE US CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA WHERE RESEARCHERS HAVE COUNTED 339250 AIDS CASES THROUGH SEPT 30 AIDS SURVEILLANCE CHIEF JOHN WARD OFFERED A FUTHER CAVEAT SAN FRANCISCO'S PREVENTION EFFORTS SUCCEEDED IN PART BECAUSE ITS GAY COMMUNITY IS WELLORGANIZED HE SAID AND ALSO BECAUSE THE CITY SO FAR HAS FEWER CASES AMONG HARDTOREACH INTRAVENOUS DRUG USERS THAN DOES NEW YORK SAN FRANCISCO IS A GOOD EXAMPLE OF WHAT CAN BE ACCOMPLISHED THROUGH PREVENTION DR WARD SAID BUT I DON'T THINK IT'S REPRESENTATIVE OF THE COUNTRY NATIONALLY WE CANNOT SAY WHERE THE PEAK WILL BE 9402160099 940216 INTERNATIONAL VW'S AUDI COMPACT MODEL INGOLSTADT GERMANY AUDI AG THE LUXURYCAR DIVISION OF GERMANY'S VOLKSWAGEN AG SAID IT RECEIVED VW'S APPROVAL TO MAKE ITS PLANNED COMPACT MODEL AT A FACILITY IN INGOLSTADT INGOLSTADT HAD COMPETED WITH ONE OF VW'S OWN PLANTS IN BRUSSELS AS WELL WITH THE COMPANY'S SPANISH SEAT SA AND CZECH SKODA AS UNITS AUDI SAID THE MODEL WHICH WILL PUT A NEW LOW END ON AUDI'S RANGE OF LUXURY CARS IS TO GO INTO PRODUCTION IN MID1996 9402160098 940216 DEBT OF SULLIVAN COMMUNICATIONS RATED UNFAVORABLY BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MAJOR CREDITRATING AGENCY GAVE AN UNFAVORABLE REVIEW TO A PLANNED 185 MILLION PRIVATEPLACEMENT OF SULLIVAN COMMUNICATIONS INC TO BE MANAGED BY MORGAN STANLEY GROUP INC STANDARD & POOR'S CORP ASSIGNED A SINGLEBMINUS RATING TO 135 MILLION OF SENIOR NOTES DUE 2004 TO BE ISSUED BY SULLIVAN GRAPHICS INC S&P ALSO ASSIGNED A TRIPLEC RATING TO 50 MILLION OF SENIOR DISCOUNT DEBENTURES DUE 2006 BY THE HOLDING COMPANY SULLIVAN COMMUNICATIONS BOTH RATINGS ARE BELOW INVESTMENTGRADE MOREOVER S&P BRANDED THE RATING OUTLOOK FOR THE BRENTWOOD TENN PRINTING CONCERN AS NEGATIVE IN A STATEMENT S&P SAID THE COMPANY WILL BE CHALLENGED TO FUND CASHFLOW SHORTFALLS OVER THE INTERMEDIATE TERM IF BUSINESS CONDITIONS DO NOT IMPROVE SULLIVAN COULDN'T BE REACHED FOR COMMENT THE BLEAK ASSESSMENT COMES AS MORGAN PREPARES TO PRICE THE COMPANY'S JUNKBOND DEAL IN THE NEXT FEW DAYS AS PREVIOUSLY REPORTED ANALYSTS HAVE SAID SULLIVAN HAS VIRTUALLY NO CASH FLOW TO PAY THE DEBT'S INTEREST AND THAT LOSSES FROM ITS COUPONBOOKLET BUSINESS APPEAR TO BE MOUNTING ONE OF SULLIVAN'S MAJOR BUSINESS LINES PRINTING THE COUPON BOOKLETS THAT ARE TUCKED INTO NEWSPAPERS EACH WEEK AROUND THE COUNTRY IS ESPECIALLY WEAK AND SHOWS NO SIGNS OF IMPROVING ANALYSTS SAY MORGAN DECLINED TO COMMENT ON THE OFFERING OR THE S&P RATINGS BUT PEOPLE FAMILIAR WITH THE MATTER SAY THE BIG INVESTMENT BANK PLANS TO PUSH FORWARD WITH THE DEAL DESPITE THE CONTROVERSY SURROUNDING IT IN A NEWS RELEASE S&P SAID THE RATINGS REFLECT THE COMPANY'S AGGRESSIVE EXPANSION PLANS IN THE FACE OF NEGATIVE CASH FLOW AND A PROTRACTED PRICE WAR IN THE FREESTANDING INSERT NEWSPAPER COUPON BUSINESS THE COMPANY ALSO HAS ACCUMULATED A LARGE DEBT BURDEN AND HAS EXHIBITED MARGINAL CASHFLOW COVERAGE OF INTEREST S&P SAID SULLIVAN'S TOTAL INDEBTEDNESS IS ABOUT 300 MILLION WHILE ITS SHAREHOLDER EQUITY IS JUST 28 MILLION THE CREDITRATING CONCERN NOTED THAT SULLIVAN'S OPERATING PERFORMANCE HAS DETERIORATED SINCE 1989 STEMMING FROM WEAK COMMERCIALPRINTING INDUSTRY CONDITIONS REDUCED MARKET SHARE AND PRICECUTTING ADDITIONALLY THE FIRM HAS INCURRED LARGE LOSSES IN ITS ATTEMPT TO GAIN MARKET SHARE IN THE FREESTANDING INSERT BUSINESS DUE TO LOW MARKET SHARE AND AGGRESSIVELY LOW PRICING S&P SAID THE COMPANY'S ABILITY TO BECOME PROFITABLE IN THIS SECTOR IS HIGHLY UNCERTAIN AS ITS COMPETITORS ARE LARGER AND HAVE FLEXIBILITY TO SUPPORT A PRICE WAR FOR THE FORESEEABLE FUTURE SULLIVAN IS CURRENTLY EMBROILED IN LITIGATION WITH ITS TWO MAJOR COMPETITORS VALASSIS COMMUNICATIONS INC AND NEWS CORP'S NEWS AMERICA FSI UNIT 9402160097 940216 YEN'S RISE POSES BROAD THREAT TO JAPAN FIRMS LIFT TO NATION'S ECONOMY FROM HOSOKAWA'S PLAN COULD BE CANCELED OUT BY WALL STREET JOURNAL REPORTERS MICHAEL WILLIAMS CRAIG FORMAN AND JACOB M SCHLESINGER TOKYO SHOICHIRO TOYODA THE CHAIRMAN OF TOYOTA MOTOR CORP LAMENTS THE YEN'S RISE AGAINST THE DOLLAR WHICH IS BLOWING AWAY THE PROFIT MARGINS OF MUCH OF JAPAN INC TOYOTA HE SAYS WANTS A RATE OF 120 YEN THAT WOULD BE CONSIDERABLY WEAKER THAN YESTERDAY'S YEN QUOTE IN LATE NEW YORK TRADING OF 10370 TO THE DOLLAR WITH THE POSSIBILITY OF A USJAPAN TRADE WAR LOOMING THE YEN'S STRENGTH IS MAKING THINGS GRIM AGAIN FOR CORPORATE JAPAN AND THAT'S BAD NEWS FOR ECONOMIES AROUND THE GLOBE THE YEN'S SURGE SINCE THE BREAKDOWN OF USJAPAN TRADE TALKS LAST FRIDAY COULD CANCEL THE STIMULATIVE EFFECTS OF PRIME MINISTER MORIHIRO HOSOKAWA'S BITTERLY FOUGHT TAX CUT AND SPENDING PACKAGE AN INITIATIVE BACKED BY THE CLINTON ADMINISTRATION IF SUSTAINED THIS YEAR'S 10 APPRECIATION OF THE YEN COULD WIPE AS MUCH AS 05 PERCENTAGE POINTS OF GROWTH FROM JAPAN'S ANNUAL GROSS DOMESTIC PRODUCT THAT ALMOST EQUALS THE 07POINT BOOST MANY EXPECT FROM THE 53 BILLION TAX CUT ANNOUNCED AFTER MUCH DELAY LAST WEEK THUS THE YEN MAY MAKE THE DIFFERENCE BETWEEN GROWTH AND CONTRACTION FOR THE JAPANESE ECONOMY THIS YEAR ACCORDING TO AN ESTIMATE BY CONSENSUS ECONOMICS LONDON ECONOMISTS EXPECT JAPAN'S GROSS DOMESTIC PRODUCT TO INCH AHEAD JUST 02 IN 1994 A MARGIN THAT WOULD BE WIPED OUT BY A LONGTERM ATTACK OF YEN STRENGTH JESPER KOLL ECONOMIST AT SG WARBURG ESTIMATES THAT EVEN WITH THE YEN BETWEEN 105 YEN AND 110 YEN TO THE DOLLAR FEWER THAN 5 OF JAPANESE EXPORTERS CAN COVER THEIR COSTS THE SITUATION HAS PROMPTED FINGERPOINTING ON BOTH SIDES OF THE PACIFIC IN TOKYO YESTERDAY THE JAPANESE GOVERNMENT SEEMED OVERWHELMED AND HAD NO CLEAR STRATEGY TO DEAL WITH THIS LATEST CRISIS NEWS REPORTS SAID MR HOSOKAWA HAS ORDERED HIS CABINET TO STUDY EMERGENCY MEASURES TO CUT THE TRADE SURPLUS BUT TOP BUREAUCRATS DENIED ANY SUCH PLAN MR HOSOKAWA MEANTIME FACES A FIGHT WITHIN HIS OWN CABINET OVER PERSONALITIES AND POLICY THAT COULD LEAD TO A RESHUFFLE SOON ON THE CURRENCY MARKETS THE BANK OF JAPAN INTERVENED HEAVILY TO DENT THE YEN'S RAPID RISE THERE WAS SPECULATION THAT THE CURRENCY MOVES COULD LEAD TO A FURTHER HALFPOINT CUT IN JAPAN'S BENCHMARK DISCOUNT RATE ALREADY PEGGED AT A POSTWAR LOW OF 175 TOKYO STOCKS PLUNGED FOR THE SECOND CONSECUTIVE DAY ON FEARS THAT A NEW BOUT OF YEN STRENGTH WOULD CHILL ANY RECOVERY AND THUS LEAD TO A FEARED TRIPLEDIP IN THE LONGRUNNING ECONOMIC SLUMP JAPAN INC WAS DUSTING OFF ITS WORSTCASE ECONOMIC SCENARIOS AND MAKING THEM EVEN BLEAKER THE BIGGEST PROBLEM IN THE ECONOMY AT THIS POINT IS THE PSYCHOLOGY THE BEARISHNESS OF FIRMS AND HOUSEHOLDS A SENIOR BANK OF JAPAN OFFICIAL SAID YESTERDAY THIS IS ONLY GOING TO MAKE THAT WORSE THIS NEW YEN APPRECIATION IS ALL THE MORE CRUEL BECAUSE JAPAN WAS WHIPSAWED IN THE SAME WAY LAST YEAR LAST SPRING MANY BELIEVED THE ECONOMY HAD HIT BOTTOM THEN THE YEN'S SHARP SURGE HELPED TOSS THE ECONOMY INTO A DOUBLEDIP SLUMP AND UNTIL LAST WEEK THINGS HAD BEEN LOOKING UP MR HOSOKAWA HAD PUT TOGETHER A 1525TRILLIONYEN PACKAGE OF TAX CUTS AND GOVERNMENT SPENDING TO BOOST JAPAN'S ECONOMY THE YEN HAD RETREATED FROM LAST AUGUST'S HEIGHTS IN A SYMBOLIC DISPLAY OF CORPORATE JAPAN'S RESILIENCE TOYOTA MANAGED TO AVOID POSTING THE INTERIM LOSSES THAT MANY ANALYSTS HAD FEARED SUDDENLY ANALYSTS ARE AGAIN SAYING THAT THE HIGH YEN COULD INDEED PUSH THE LIKES OF TOYOTA INTO THE RED AND LEAD TO MUCH HIGHER IMPORT PRICES FOR AMERICAN CONSUMERS WORST OF ALL IT COULD PRODUCE THE TRIPLE DIP IN JAPAN'S SLUMP THE REPEAT OF THE YEN ROLLERCOASTER RIDE COULD THROW COLD WATER ON PROSPECTS FOR THE ECONOMY WHEN EXPECTATIONS OF A RECOVERY ARE STRENGTHENING SAID TADAHIRO SEKIMOTO PRESIDENT OF NEC CORP THE WORLD'S SECONDLARGEST SEMICONDUCTOR MAKER BY TALKING UP THE YEN HE WARNED WASHINGTON WILL NEGATE THE EFFECTS OF THE ECONOMIC MEASURES THE JAPANESE GOVERNMENT FINALLY PRODUCED IT WON'T HELP AT ALL TO IMPROVE THE TRADE SURPLUS TO BE SURE THE YEN'S RUNUP COULD PROVE TO BE TEMPORARY THE US GOVERNMENT COULD ACT AS IT DID LAST YEAR TO REVERSE THE YEN'S SLIDE MANY ANALYSTS SAY ECONOMIC FUNDAMENTALS CHIEFLY THE WEAKNESS OF JAPAN'S ECONOMY RELATIVE TO THE US BOOM AND DIFFERENCES IN THE INTERESTRATE CYCLE SUPPORT A WEAKER YEN STILL MANY BUSINESS LEADERS AND ANALYSTS FRET THAT APPRECIATION MAY LINGER LARGELY AS A RESULT OF PERCEPTIONS THAT THE US HOPES TO USE THE LOWER DOLLAR AS A WAY TO DENT JAPANESE EXPORTS AND BOOST US IMPORTS TO JAPAN THAT PERCEPTION FEEDS A PAINFUL CYCLE CONSUMERS ARE AFRAID TO SPEND BECAUSE THEY WORRY ABOUT THEIR WAGES AND THEIR JOBS AT A TIME WHEN THEIR EMPLOYERS ARE HURTING AT THE SAME TIME COMPANIES AREN'T CUTTING COSTS ESPECIALLY LABOR COSTS FAST ENOUGH TO IMPROVE THEIR EARNINGS THEY ARE AFRAID OF BREAKING JAPAN'S TABOO AGAINST FIRING WORKERS AND THUS FURTHER SPOOKING CONSUMERS THERE'S NO EASY WAY OUT FROM THIS VICIOUS CIRCLE SAYS NOBORU KAWAI ECONOMIST AT MORGAN STANLEY JAPAN LTD IT WILL TAKE MANY MANY QUARTERS MORE AS WASHINGTON AND THE FINANCIAL MARKETS TURNED UP THE HEAT THE JAPANESE GOVERNMENT HAD VIRTUALLY NO RESPONSE YESTERDAY POLITICAL AND BUREAUCRATIC LEADERS ACTUALLY APPEARED BEWILDERED THAT THE PERIOD FOR COOLING OFF AND REFLECTION THE WORDS BOTH HEADS OF STATE USED AFTER THE SUMMIT'S COLLAPSE BARELY LASTED THE WEEKEND REFLECTION IS REFLECTION AN IRKED FOREIGNMINISTRY OFFICIAL TOLD REPORTERS DEMANDING TO KNOW JAPAN'S NEXT STEP I THINK WE SHOULD REFLECT BUT FEW IN JAPAN HAVE MUCH SYMPATHY FOR US DEMANDS TO OPEN UP JAPAN'S MARKET BY SETTING IMPORT TARGETS THE US HAS CLEARLY GONE BEYOND THE LIMIT SAID YUKIO OKAMOTO A FORMER FOREIGNMINISTRY OFFICIAL WHO NOW RUNS A CONSULTING COMPANY THE SOLUTION TO THIS BILATERAL FIGHT IS SO HARD TO FIND BECAUSE IN A NUTSHELL EACH COUNTRY IS RIGHT WHEN IT BLAMES THE OTHER THE YEN'S STRENGTH IS A DIRECT RESULT OF THE HUGE TRADE SURPLUSES JAPAN HAS RACKED UP OVER THE YEARS A RECORD 1204 BILLION LAST YEAR NEARLY HALF WITH THE US ALONE AND NEW NUMBERS TO BE RELEASED IN TOKYO TODAY COULD FAN THE TRADEWAR FLAMES WHEN JAPAN'S ULTRACOMPETITIVE EXPORTERS REPATRIATE THEIR HUGE PROFITS THEY BUY YEN DRIVING UP THEIR HOME CURRENCY'S VALUE AT THE SAME TIME JAPAN IMPORTS RELATIVELY LITTLE FOR A TRADING NATION OF ITS MIGHT AS A RESULT IT DOESN'T RECYCLE ENOUGH OF ITS DOLLARS TO OFFSET THE UPWARD PRESSURE ON THE YEN ON THE OTHER HAND MR HOSOKAWA'S GOVERNMENT COUNTERS THAT IT IS TRYING AS HARD AS IT CAN TO DEREGULATE AND OPEN ITS MARKETS TO GREATER COMPETITION IN THE MEANTIME IT BLAMES THE US FOR ALLOWING THE DOLLAR TO FALL MAKING GROWTH PROSPECTS WORSE IN A WAY ALLOWING THE DOLLAR TO SLIDE IS THE ULTIMATE TRADE SANCTION AFFECTING THE JAPANESE ECONOMY INDISCRIMINATELY COMPARED TO THE STILETTO OF FORMAL SANCTIONS THE HIGH YEN IS A SORT OF BOMB IN THE WORLD OF TRADE WEAPONS AUTO MAKERS STAND TO BEAR MUCH OF THE BRUNT ALREADY JAPANESE CAR MAKERS ARE PRICING THEIR CARS SOME 2000 MORE THAN US MODELS MR TOYODA AND OTHER AUTO EXECUTIVES SAY THAT BECAUSE OF THE YEN'S STRENGTH THERE IS NO END IN SIGHT TO THE GAP IF ANYTHING SMALLER BUSINESSES ARE GETTING HIT EVEN HARDER A RECENT SURVEY OF SMALL BUSINESSES TAKEN BY THE JAPAN FINANCE CORPORATION FOR SMALL BUSINESS SHOWS THAT A MAJORITY OF COMPANIES EXPECT THEIR PROFIT TO FALL IN THE FIRST AND SECOND QUARTERS OF THIS YEAR THE OUTLOOK IS GOING FROM BAD TO WORSE JUST ASK COIN DEALER TOSHIO OSHIMA ON A SIDE STREET IN TOKYO'S GRITTY KANDA DISTRICT MR OSHIMA SITS IN HIS SHOP SURROUNDED BY PILES OF US SILVER DOLLARS AND THE ODD GREENBACK THE VOLATILE CURRENCY MARKET IS PLAYING HAVOC WITH HIS BUSINESS COMPLAINS MR OSHIMA THE POWERFUL YEN MEANS HE COULD IMPORT MORE COINS BUT WITH THE VALUE OF HIS INVENTORY DOWN MORE THAN 40 MILLION YEN BECAUSE OF THE CURRENCY'S RECENT SURGE BUYING IS THE LAST THING ON HIS MIND I'D LIKE TO LIQUIDATE BUT I CAN'T HE SAYS WAVING AT A STACK OF DUSTY COINS NO BUYERS HIS PROBLEMS ARE WIDELY SHARED NLI RESEARCH INSTITUTE PREDICTS THAT THE NATION'S AVERAGE ANNUAL POTENTIAL GROWTH RATE WILL SLOW TO 27 IN 1995 TO 2000 AND TO 21 IN THE SECOND HALF OF THE NEXT DECADE ONE OF THE MAJOR RESTRAINTS ON GROWTH SAYS THE INSTITUTE IS JAPAN'S RELATIVE LOSS OF COMPETITIVENESS WITH OTHER NATIONS A PROBLEM BROUGHT ON BY THE STEADY APPRECIATION OF THE YEN SINCE THE LATE 1980S 9402160096 940216 BUSINESS BRIEF EXCEL TECHNOLOGY INC CONCERN TO BUY LASER UNIT FROM UNITED TECHNOLOGIES EXCEL TECHNOLOGY INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE UNITED TECHNOLOGIES CORP'S INDUSTRIAL LASERS UNIT WHICH MAKES LASERS USED FOR WELDING AND HARDENING APPLICATIONS IN THE AUTOMOTIVE AND AEROSPACE INDUSTRIES EXCEL SAID THE PRICE WILL REFLECT CERTAIN SPECIFIC ASSETS AND LIABILITIES AND A PREMIUM AT THE TIME OF CLOSING IF THE ACQUISITION HAD TAKEN PLACE AT THE END OF DECEMBER THE PRICE WOULD HAVE BEEN ABOUT 7 MILLION HAUPPAUGE NYBASED EXCEL WHICH MAKES LASER SYSTEMS SAID IT PLANS TO COMPLETE THE ACQUISITION BY MARCH 31 UNITED TECHNOLOGIES IS BASED IN HARTFORD CONN 9402160095 940216 BMC WEST 3FOR2 STOCK SPLIT BOISE IDAHO BMC WEST CORP DECLARED A 3FOR2 STOCK SPLIT PAYABLE MARCH 4 IN THE FORM OF A STOCK DIVIDEND TO HOLDERS OF RECORD FEB 25 THE BUILDINGMATERIALS CONCERN SAID THE MOVE REFLECTS ITS STRONG OPERATIONAL AND FINANCIAL PERFORMANCE OVER THE PAST YEAR AS WELL AS OUR CONTINUED PROSPECTS 9402160094 940216 BUSINESS BRIEF BOISE CASCADE CORP STAKE MAY BE SOLD IN UNIT AFTER CONSOLIDATION OF LINES BOISE CASCADE CORP BOISE IDAHO SAID IT WILL CONSOLIDATE MOST OF ITS UNPROFITABLE NEWSPRINT AND UNCOATED GROUNDWOOD PAPER USED FOR CATALOGS INTO ITS CANADIAN UNIT AND MAY SELL AN EQUITY STAKE IN THE UNIT THE UNIT WILL BE MANAGED INDEPENDENTLY AND WILL HAVE ACCESS TO FINANCIAL MARKETS BOISE SAID THAT MEANS THE UNIT MIGHT ISSUE STOCK OR PARTS OF IT MIGHT BE SOLD A SPOKESMAN SAID HE SAID THE DETAILS WILL BE HAMMERED OUT IN COMING MONTHS THE COMPANY SAID THE MOVE IS PART OF ITS LONGTERM PLAN TO INVEST IN COATED AND UNCOATED WHITE PAPER EVEN THOUGH THOSE BUSINESSES ALSO ARE UNPROFITABLE WITH PRICES AT A 60YEAR LOW WE DO EXPECT THEM TO REBOUND AND WHEN THEY DO WE WANT TO BE IN POSITION TO TAKE ADVANTAGE OF THAT RESURGENCE A SPOKESMAN SAID 9402160093 940216 CREDIT RATINGS CARDINAL HEALTH INC DUBLIN OHIO MOODY'S INVESTORS SERVICE INC UPGRADED ITS LONGTERM DEBT RATING OF CARDINAL HEALTH TO BAA1 FROM BAA2 CITING AN IMPROVING BUSINESS PROFILE ABOUT 250 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY SAID CARDINAL HEALTH FORMERLY NAMED CARDINAL DISTRIBUTION INC WILL BENEFIT FROM AN ENRICHED CUSTOMER MIX AND WIDER GEOGRAPHIC REACH FOLLOWING ITS RECENTLY APPROVED ACQUISITION OF WHITMIRE DISTRIBUTION CORP THE COMBINED COMPANIES ARE EXPECTED TO HAVE ABOUT 6 BILLION IN PHARMACEUTICAL SALES THIS YEAR MOODY'S ADDED THAT IT EXPECTS CARDINAL TO BENEFIT FROM COST SAVINGS AND OPERATING SYNERGIES STEMMING FROM THE ACQUISITION 9402160092 940216 LEISURE & ARTS BOOKSHELF A FIRSTHAND ACCOUNT OF CHINA'S GULAG BY ROSS H MUNRO WHILE PREPARING TO BECOME THE BEIJING CORRESPONDENT FOR A CANADIAN NEWSPAPER IN THE MID1970S I STUMBLED ACROSS PRISONER OF MAO WHEN I TOLD US SINOLOGISTS THAT MY PREPARATORY READING HAD INCLUDED THIS CHILLING FIRSTHAND ACCOUNT OF A FRANCOCHINESE MAN'S SEVEN YEARS IN THE CHINESE GULAG THEY CONTEMPTUOUSLY DISMISSED IT AS UNIMPORTANT IN THOSE DAYS AMERICA'S FOREMOST INTERPRETER OF CHINA JOHN KING FAIRBANK HAD ONLY RECENTLY DECLARED THAT THE MAOIST REVOLUTION IS ON THE WHOLE THE BEST THING THAT HAPPENED TO THE CHINESE PEOPLE IN CENTURIES ONLY AFTER MAO'S DEATH DID THE WINDS OF INTELLECTUAL FASHION SHIFT AMID A FLURRY OF BOOKS BY CHINESE TELLING OF THE HORRORS OF EVERYDAY LIFE DURING THE CHAIRMAN'S REIGN BUT NOT SINCE PRISONER OF MAO WAS PUBLISHED IN 1973 HAS A VOICE FROM THE CHINESE PRISON CAMPS SPOKEN OUT WITH SUCH COMPELLING IMMEDIACY AS HARRY WU'S SINCE COMING TO THE US IN 1985 WU HAS BEEN INSTRUMENTAL IN EXPOSING THE VAST SYSTEM OF PROFITMAKING PRISON FARMS AND FACTORIES THAT MANUFACTURE PRODUCTS OFTEN FOR EXPORT HE SEIZED THE MEDIA'S ATTENTION AFTER HE SECRETLY RETURNED TO CHINA IN 1991 AND COURAGEOUSLY BLUFFED HIS WAY INTO LABOR CAMPS AND INTO MEETINGS WITH OFFICIALS TRYING TO SELL LABORCAMP PRODUCTS TO US CUSTOMERS HIS FIRST BOOK LAOGAI THE CHINESE GULAG WAS WIDELY AND JUSTLY PRAISED FOR ITS PIONEERING ATTEMPT TO DOCUMENT THE DETAILED WORKINGS OF THE PRISONCAMP SYSTEM BUT ITS DRY AND SCATTERSHOT STYLE TURNED AWAY ALL BUT THE MOST COMMITTED READERS HIS SECOND BOOK BITTER WINDS A MEMOIR OF MY YEARS IN CHINA'S GULAG JOHN WILEY & SONS 290 PAGES 2295 IS DIFFERENT THIS TIME HIS COLLABORATOR CAROLYN WAKEMAN HAS COAXED HIM TO SPEAK FROM HIS HEART AND GIVE US HIS VERY HUMAN STORY IN 1957 MR WU WAS AN INDEPENDENTMINDED UNIVERSITY STUDENT WHO NAIVELY ACCEPTED CHAIRMAN MAO'S EXHORTATION THAT ALL CHINESE SHOULD POINT OUT THE COMMUNIST PARTY'S SHORTCOMINGS BORN INTO A REACTIONARY MIDDLECLASS SHANGHAI FAMILY MR WU WAS A PERFECT FALL GUY WHEN MAO SUDDENLY REVERSED COURSE AND DENOUNCED THE PARTY'S CRITICS ALONG WITH LITERALLY HUNDREDS OF THOUSANDS OF FELLOW RIGHTISTS AND COUNTERREVOLUTIONARIES MR WU SOON FOUND HIMSELF ENTRAPPED AND SENTENCED WITHOUT TRIAL TO REFORM THROUGH LABOR IN THE PRISON CAMPS FOR ALMOST THE NEXT TWO DECADES MR WU WAS CAUGHT IN A NIGHTMARISH MICROCOSM OF MAOIST CHINA POLITICAL CAMPAIGNS THAT MAO LAUNCHED ON THE OUTSIDE TO TERRORIZE OPPONENTS BOTH HIGH AND LOW WERE FAITHFULLY REPLICATED INSIDE THE CAMPS LIKE OFFICES SCHOOLS AND FACTORIES PRISONS WERE ORDERED TO COME UP WITH THEIR QUOTA OF POLITICAL ENEMIES THE WORST PHYSICAL SUFFERING RESULTED DIRECTLY FROM THE GREAT LEAP FORWARD MAO'S MANIC ATTEMPT AT ACCELERATED ECONOMIC DEVELOPMENT THAT ENDED IN WIDESPREAD FAMINE MANY AMONG THE MILLIONS OF COMMON CRIMINALS AND POLITICAL PRISONERS WHO INHABITED THE GULAG DID NOT SURVIVE THE WARDENS SET UP SEPARATE DEATH CAMPS WHERE THEY DUMPED PRISONERS WHOSE HEALTH HAD BEEN DESTROYED BY OVERWORK AND STARVATION RATIONS WHICH INCLUDED FOOD SUBSTITUTES SUCH AS WHEAT CHAFF AND FERMENTED CORN COBS MIRACULOUSLY MESSRS WU AND JEAN PASQUALINI AUTHOR OF PRISONER OF MAO SURVIVED THE SAME DEATH CAMP JUST ONE YEAR APART AFTERWARD MR WU STAYED ALIVE BY GETTING FOOD ANY WAY HE COULD FIGHTING OVER A RAW WILTED TURNIP WITH A FELLOW INMATE EATING FIELD SNAKES AFTER BITING OFF THEIR HEADS AND EVEN SCAVENGING GRAIN FROM A RAT'S BURROW HE DOES NOT PORTRAY HIMSELF AS A HERO HE DESCRIBES HOW HE CURRIED FAVOR WITH GUARDS AND SUPERVISORS WHILE OFTEN ASSUMING A COLD INDIFFERENCE TOWARD HIS FELLOW INMATES CONDITIONS IN THE LABOR CAMPS BEGAN IMPROVING WITHIN WEEKS OF THE DEATH OF MAO AND THE SUBSEQUENT ARREST OF HIS WIDOW AND OTHER RADICAL LEADERS IN THE AUTUMN OF 1976 THE AUTHORITIES GRADUALLY REDUCED THEIR RESTRICTIONS ON MR WU AND HE WAS RELEASED IN 1979 HE LATER SOUGHT OUT SOME OF THE PETTY CHINESE OFFICIALS WHO PERSECUTED HIM AND SET HIM ON THE ROAD TO THE LABOR CAMPS NOT SO MUCH TO CONFRONT THEM AS TO LET THEM KNOW HE HAD SURVIVED DESPITE THEM THEIR REACTION PRODUCES ONE OF THE BOOK'S MOST TROUBLING SECTIONS THEY MAKE NO APOLOGIES INSTEAD IT'S OBVIOUS THAT THEY'RE WORKING HARD TO BLOT OUT THE MEMORY OF THEIR VICIOUS CONTRIBUTIONS TO THE INJUSTICE OF THOSE YEARS NOR HAS CHINA'S TOP LEADERSHIP EVER REPUDIATED LET ALONE ELIMINATED THE LABOR CAMPS WHILE THE HUNDREDS OF THOUSANDS OF POLITICAL PRISONERS IN MAO'S DAY HAVE SHRUNK TO PROBABLY A FEW THOUSAND THE GULAG TODAY REMAINS AN IMPORTANT PART OF CHINESE SOCIETY AND A SOURCE OF CHEAP LABOR HARD LABOR IS STILL THE FATE OF THOSE CONVICTED OF CRIME UNDER CHINA'S DUBIOUS LEGAL SYSTEM THANKS TO HARRY WU THESE PEOPLE ARE NOT FORGOTTEN AND THE DARKEST DAYS OF THE CHINESE GULAG HAVE BEEN RECORDED FOR HISTORY MR MUNRO COORDINATOR OF THE ASIA PROGRAM AT THE FOREIGN POLICY RESEARCH INSTITUTE PHILADELPHIA WAS THE BEIJING CORRESPONDENT FOR THE GLOBE AND MAIL TORONTO IN THE MID1970S 9402160090 940216 INSIDE TRACK BUYERS ARE FILLING UP ON SECONDTIER OIL STOCKS BY WARREN GETLER AND ALLANNA SULLIVAN STAFF REPORTERS OF THE WALL STREET JOURNAL OIL INDUSTRY INSIDERS ARE SHOWING A GROWING APPETITE FOR THEIR BEATENUP SHARES SO FAR THE BUYING ACTIVITY IS CROPPING UP PRIMARILY AMONG SECONDTIER COMPANIES NOT THE BIG INTEGRATED MULTINATIONALS ANALYSTS WHO TRACK INSIDER ACTIVITY SAID AMONG THOSE COMPANIES WITH EXECUTIVES AND DIRECTORS PLACING BULLISH BETS SINCE NOVEMBER ARE QUAKER STATE CORP ASHLAND OIL INC TESORO PETROLEUM CORP POGO PRODUCING CO WAINOCO OIL CORP ORYX ENERGY CO LOUISIANA LAND & EXPLORATION CO AND RED EAGLE RESOURCES CORP RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW AS ENERGYSECTOR SHARE PRICES DETERIORATED THROUGH THE FALL AND WINTER INSIDER BUYING ACTIVITY PICKED UP SAID MICHAEL PAINCHAUD DIRECTOR OF RESEARCH AND A PARTNER AT MARKET PROFILE THEOREMS A SEATTLE INVESTMENT ADVISORY CONCERN THAT TRACKS INSIDER BUYING AND SELLING MR PAINCHAUD SAID HE'S ADVISING HIS INSTITUTIONAL CLIENTS TO FOLLOW THE INSIDERS' LEAD AND GO BARGAINHUNTING WE'RE TELLING OUR CLIENTS THEY SHOULD BE BUYING THE ENERGY SECTOR APPARENTLY INSIDERS SEE VALUE IN THESE PRICES AND WE ALSO THINK THE SECTOR HAS GOOD DEFENSIVE CHARACTERISTICS IN A MARKET BUFFETED BY INTERESTRATE RISK THE ANALYST NOTED THAT OILINDUSTRY INSIDERS TEND TO BE PRESCIENT MOVING IN FORCE TO SELL SHARES WHEN THEY SENSE THAT CRUDEOIL PRICES AND ENERGYSTOCK VALUATIONS ARE GETTING HIGH AND CONVERSELY MOVING TO BUY WHEN THEY SENSE THE OIL MARKET IS ABOUT TO HIT BOTTOM LAST SUMMER FOR INSTANCE OILGROUP INSIDERS SOLD HEAVILY WHEN CRUDE PRICES REACHED HIGHS OF AROUND 1850 A BARREL DURING THE PAST SEVERAL MONTHS HOWEVER WITH CRUDEOIL PRICES DOWN TO AROUND 14TO15 A BARREL OILSECTOR INSIDERS HAVE BECOME AMONG THE MOST ACTIVE BUYERS OF ANY INDUSTRY GROUP TRACKED BY MARKET PROFILE THEOREMS PRECISELY AT A TIME WHEN THE OIL GROUP'S SHARE PRICE PERFORMANCE RELATIVE TO OTHER INDUSTRY SECTORS HAS BEEN DISMAL MR PAINCHAUD NOTED BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT ANALYZES INSIDER ACTIVITY ALSO SEES BULLISH SENTIMENT ON THE RISE INSIDERS ARE STARTING TO BET THAT OIL WILL NOT BE THIS CHEAP SIX MONTHS TO A YEAR OUT BUT HE'S NOT GETTING OVERLY EXCITED ABOUT A BIG MOVE IN OIL SHARES AS AN INFLATION HEDGE GIVEN THE AMOUNT OF INSIDER SELLING IN OTHER IMPORTANT COMMODITY SECTORS SUCH AS GOLD AND COPPER HIS ADVICE FOR PROSPECTIVE INVESTORS IS TO LOOK FOR FURTHER BULLISH INSIDER ACTIVITY IN THOSE COMPANIES WHOSE STOCK HAS YET TO MOVE HIGHER THE GROUP IS STILL CHEAP AND IT WOULDN'T SURPRISE US TO SEE MORE ACCUMULATION BY INSIDERS IN THOSE ISSUES THAT HAVE YET TO RECOVER ANY GROUND HE SAID MR GABELE POINTED OUT FOR EXAMPLE THAT TESORO'S STOCK HAS JUMPED TO JUST OVER 10 A SHARE OR NEARLY DOUBLE THE LEVEL AT WHICH THREE INSIDERS AT THE COMPANY BOUGHT WHEN THEY PURCHASED A COMBINED 56000 SHARES IN MIDNOVEMBER MICHAEL BURKE TESORO'S CHIEF EXECUTIVE OFFICER AND PRESIDENT BOUGHT 50000 SHARES AT AN AVERAGE OF 6 EACH AT THE TIME AND SAID HE INTENDS TO BUY MORE MY PURCHASES RELATE MORE TO THE FACT THAT THE COMPANY IS IN A TURNAROUND SITUATION WE'VE BEEN ABLE TO PUT IN PLACE A LOWER COST STRUCTURE HE SAID HE ADDED THAT THE SAN ANTONIO REFINING AND MARKETING COMPANY ALSO HAS BENEFITED FROM STRONG NATURALGAS OPERATIONS IN SOUTH TEXAS BUT MR BURKE SAID HE'S NOT COUNTING ON ANY MAJOR UPSWING IN THE OIL OR GAS MARKET THE MARKET IS RISKY AND PRICES ARE VOLATILE HE SAID NO ONE CAN SPEAK VERY CONFIDENTLY ABOUT WHERE THEY'RE GOING IN THE FUTURE SEVERAL COMPANIES AT WHICH INSIDERS HAVE BEEN ACTIVE HAVE SEEN LITTLE OR NO UPWARD MOVEMENT SINCE THEIR RESPECTIVE INSIDERS BOUGHT THESE INCLUDE QUAKER STATE SHARES WHICH INSIDERS BOUGHT AT AN AVERAGE OF 13 AND THAT NOW FETCH 14 LOUISIANA LAND IN WHICH INSIDERS BOUGHT SHARES AT AN AVERAGE OF 40 THAT NOW TRADE AT 3850 AND ORYX ENERGY WHICH HAS DROPPED TO 18375 A SHARE FROM THE 20 AT WHICH INSIDERS MADE PURCHASES OILINDUSTRY ANALYSTS AGREE THAT BETTING ON A PRICE RISE ANYTIME SOON IS RISKY GIVEN THE DISARRAY WITHIN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND THE AMPLE FLOW OF CRUDE OIL INTO THE MARKET FROM NONOPEC SOURCES IN FACT A NUMBER OF OIL STOCKS HAVE BEEN DOWNGRADED IN RECENT WEEKS AS EXPECTATIONS OF HIGHER OIL PRICES HAVE DIMMED OIL PRICES ARE JUST AS LIKELY TO GO DOWN AS UP SAID ALVIN SILBER AN ENERGY INDUSTRY ANALYST WITH HERZOG HEINE GEDULD IN NEW YORK THOSE INVESTORS WHO CLAIM OPEC WILL RIDE TO THE RESCUE AT ITS MEETING NEXT MONTH ARE REALLY OUT ON A LIMB SUPPLY AND DEMAND HAVE OVERTAKEN OPEC AS A DETERMINING INFLUENCE ON PRICE AND THERE'S EXCESS SUPPLY OUT THERE RIGHT NOW SOME ANALYSTS SAY OIL PRICES COULD FALL ANOTHER 2 OR 3 A BARREL IN THE COMING MONTHS PHILIP VERLEGER SENIOR ENERGY ANALYST WITH THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON SAID INVENTORIES ARE GOING TO BUILD DURING THE SECOND QUARTER AND OPEC WILL NOT DO ANYTHING TO TIGHTEN UP SUPPLY I THINK WE COULD SEE THE SPOT PRICE ON WEST TEXAS INTERMEDIATE CRUDE DROP TO 12 A BARREL IN THE MAYJULY PERIOD ACCORDING TO JOHN LICHTBLAU CHAIRMAN OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION IN NEW YORK THERE'S ONLY A 50 CHANCE THAT OPEC MIGHT CUT ITS OUTPUT THAT'S DESPITE NEW DATA FROM THE GROUP'S OWN ADVISERS WHO SAID YESTERDAY THAT DEMAND FOR OPEC CRUDE DURING THE SECOND QUARTER WILL BE ONLY 232 MILLION BARRELS DAILY LESS THAN EARLIER ANTICIPATED OPEC IS CURRENTLY PUMPING OUT ABOUT 247 MILLION BARRELS A DAY AT LEAST 200000 BARRELS BEYOND ITS PRODUCTION CEILING OF 245 MILLION BARRELS DAILY EVEN THOUGH IT MAKES EMINENT SENSE ECONOMICALLY TO CUT IT HAS BECOME MORE OF A POLITICAL ISSUE MR LICHTBLAU SAID MR SILBER SAID THAT INVESTORS IN SECONDTIER DOMESTIC PRODUCERS SHOULD FOCUS ON COMPANIES WITH NATURALGAS EXPOSURE SUCH AS TESORO AND POGO NATURALGAS PRICES HAVE BEEN CLIMBING ALTHOUGH SOME OF THE RECENT INCREASES HAVE BEEN WEATHERRELATED GAS PRICES FOR THE LONG HAUL ARE EXPECTED TO BE HEADING UP DURING THE NEXT FOUR TO FIVE YEARS IF AND WHEN CRUDEOIL PRICES DO RISE THEY WON'T JUMP MUCH BEYOND 18 A BARREL INDUSTRY ANALYSTS SAY THAT'S GOOD FOR REFINERS WHO USE CRUDE OIL AS THE FEEDSTOCK FROM WHICH THEY MAKE THEIR PRODUCTS DURING RECENT MONTHS WHEN A COLD SNAP WRACKED MUCH OF THE COUNTRY PRICES OF OIL PRODUCTS ESPECIALLY HEATING OIL JUMPED ASHLAND A MAJOR REFINER HAS BENEFITED FROM LOW CRUDEOIL PRICES AS WELL AS FROM AN IMPROVEMENT IN MARGINS IN MOST DIVISIONS INCLUDING ITS CHEMICAL BUSINESS WITH CRUDE PRICES RUNNING RECENTLY AT FIVEYEAR LOWS OUR STOCK WAS LOOKING BRIGHT SAYS PAUL CHELLGREN ASHLAND'S PRESIDENT HE SAID HE EXERCISED ASHLAND OPTIONS TWICE ONCE IN DECEMBER AND AGAIN IN JANUARY EACH TIME HE EXERCISED 6000 OPTIONS AND HAS HELD ON TO THOSE SHARES 9402160088 940216 WORLD MARKETS WHILE TOKYO STOCKS TAKE YET ANOTHER BEATING FOREIGN INVESTORS ARE BETTING THE WORST IS OVER BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE TOKYO STOCK MARKET'S LOCOMOTIVE IS ON A SIDING BUT IT ISN'T OFF THE RAILS BULLISH FOREIGNERS WHO HAVE BEEN THE KEY PLAYERS IN THE TOKYO MARKET'S 9 RALLY THIS YEAR ARE HANGING BACK AFTER FRIDAY'S DISASTROUS FAILED TRADE TALKS BETWEEN THE US AND JAPAN THE JAPANESE MARKET IS TAKING A NEARTERM PUMMELING WITH SELLING LED BY JAPANESE BANKS COMPANIES AND INDIVIDUALS THE NIKKEI 225STOCK INDEX TUESDAY PLUNGED 48465 POINTS OR 25 TO 1897460 ON WEDNESDAY THE NIKKEI ROSE 16731 POINTS TO CLOSE THE MORNING SESSION AT 1914191 TUESDAY'S ESTIMATED VOLUME WAS 380 MILLION SHARES UP FROM 2908 MILLION SHARES ON MONDAY LOSERS OVERWHELMED GAINERS 102884 THE NIKKEI HAS FALLEN 5 THIS WEEK THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES DROPPED 2664 POINTS OR 17 TO 155534 THE SELLERS SAID THE JAPANESE CURRENCY'S RISE TO 102 YEN TO THE US DOLLAR RAISES CONCERN ABOUT A HOPEDFOR RECOVERY JAPAN DEPENDS ON EXPORTS AND A STRONG YEN MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS HOPES OF A RECOVERY HAVE BEEN A PRIMARY REASON FOR FOREIGN PURCHASES OF ROUGHLY 15 BILLION OF JAPANESE STOCKS THIS YEAR IF WE'RE LOOKING AT THE YEN HOVERING BETWEEN 100 AND 105 WE HAVE TO CALL INTO QUESTION OUR EARNINGS RECOVERY SAID PAUL MANSON A FUND MANAGER WITH KLEINWORT BENSON INVESTMENT MANAGEMENT IN JAPAN THE FOREIGNERS ARE DOWN BUT NOT OUT MARK FAWCETT A FUND MANAGER AT INDOSUEZ GARTMORE ASSET MANAGEMENT JAPAN LTD WAS AMONG TUESDAY'S BUYERS DAYS LIKE THIS ARE MADE FOR INVESTORS HE SAID PEOPLE ARE UNLOADING STOCKS UNTHINKINGLY HE WAS MOSTLY PICKING UP SMALLCAPITALIZATION JAPANESE STOCKS SUCH AS IO DATA DEVICE A MEMORYBOARD MAKER WITH LITTLE OVERSEAS EXPOSURE MOST OVERSEAS INVESTORS DON'T BELIEVE AN ALLOUT TRADE WAR WITH THE US IS LIKELY MOREOVER THE YEN'S STRENGTH UP 6 IN THE PAST FEW DAYS HAS BEEN A BOON FOR DOLLARBASED INVESTORS AND IF THE CURRENCY MARKET CALMS DOWN THESE INVESTORS SAID FOREIGN BUYERS WILL BE BACK THE DOLLARYEN CONCERNS ARE OVERDONE SAID JOHN ALKIRE PRESIDENT OF MORGAN STANLEY ASSET MANAGEMENT JAPAN JAPANESE STOCKS HE SAID ARE STILL THE MOST ATTRACTIVE ASSET CLASS OF 1994 BUT THEY'RE GOING TO BE MARKED BY A HIGH VOLATILITY THE VOLATILITY IS ALREADY HERE FOR WELLKNOWN EXPORTERS SOME OF THE STOCKS THAT FOREIGN INVESTORS LIKE BEST WHILE THE NIKKEI FELL 25 TUESDAY HITACHI ELECTRONICS CLOSED AT 870 YEN 848 A SHARE DOWN 44 ON THE DAY WHILE COMPUTER MAKER NEC FINISHED AT 985 YEN ALSO OFF 44 MR ALKIRE OF MORGAN STANLEY BELIEVES THE NIKKEI WILL MOVE BETWEEN 17000 AND 20000 UNTIL THE END OF MARCH WITH NO INCENTIVES TO BUY AND THEN RISE AFTER THAT BASED ON JAPANESE ECONOMIC GROWTH INDEED SEVERAL FACTORS ARE LIKELY TO KEEP OVERSEAS INVESTORS IN THE JAPANESE MARKET FOR ONE THE RISE IN THE YEN GIVES THEM CURRENCY GAINS THAT SO FAR OUTWEIGH THE LOSSES FROM STOCKS BUT THAT GAIN VANISHES IF THE YEN STOPS RISING BUT STOCKS KEEP FALLING MORE IMPORTANT MANY OF THE US INVESTORS COMING INTO JAPAN'S MARKET ARE FIRSTTIME BUYERS LOOKING FOR ADDED GAINS ON THE BIG PROFITS THEY HAVE MADE IN OTHER MARKETS THEY CONSIDER JAPAN OVERDUE FOR THE SAME RISES THEY HAVE SEEN ON OTHER WORLD MARKETS AND HAVE BEEN HUNGRY TO GET IN IF THE MARKET STABILIZES THAT COULD BE THEIR BUY SIGN CERTAINLY THERE IS REASON TO THINK THE YEN WILL STOP STRENGTHENING WITH US INTEREST RATES RISING AND JAPANESE RATES LIKELY TO FALL IT MAY BE HARD FOR THE US TO HOLD THE YEN AT HIGHER LEVELS NO ONE BELIEVES THE DOLLARYEN RATE IS SUSTAINABLE AT 102 TO THE DOLLAR INDOSUEZ'S MR FAWCETT SAID THE CURRENCY MARKET CAN GO ON RUNS PARTICULARLY WHEN LOUDMOUTH POLITICIANS SOUND OFF BUT IT'S AGAINST THE FUNDAMENTALS LONDON SHARES CLOSED AT THE DAY'S PEAKS AFTER TURNING SHARPLY HIGHER IN LATE TRADING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11618 DOWN 074 REFLECTING LOWER ASIA/PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16744 UP 226 OR 14 WITH THORN EMI OF BRITAIN POSTING A 2 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 7506 DOWN 311 OR 4 WITH UNICORD OF THAILAND SLIDING 46 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 297 POINTS TO 33932 UP FROM THE INTRADAY LOW OF 33670 THE FT 30STOCK INDEX GAINED 201 POINTS TO 26068 VOLUME WAS 7126 MILLION SHARES COMPARED WITH 6265 MILLION SHARES A DAY EARLIER THE MARKET WAS SPURRED HIGHER BY A RALLY IN THE FUTURES MARKET AND A STRONG START ON WALL STREET AS WELL AS SOME OPTIMISM ABOUT A CUT IN BRITAIN'S BASE LENDING RATE IN THE NEXT SIX WEEKS FURTHER STRENGTH WAS SAPPED BY CAUTION AHEAD OF A CORPORATE EARNINGS FLOODGATE TO OPEN NEXT WEEK AND BY ECONOMIC DATA COMING THIS WEEK YESTERDAY THE MARKET WAS IN POSITIVE TERRITORY FOR THE ENTIRE SESSION SCARCELY STIRRED BY ECONOMIC NEWS THAT SHOWED BRITISH RETAILERS' JANUARY SALES ROSE MODERATELY BUT AT THE SLOWEST PACE FOR THE PAST 12 MONTHS AND THAT INDUSTRIAL PRODUCTION IN DECEMBER FELL FROM NOVEMBER BUT ROSE FROM A YEAR EARLIER IN FRANKFURT STOCK PRICES CLOSED MIXED AMID EXTREMELY LIGHT TRADING BECAUSE OF CARNIVAL CELEBRATIONS IN SOME AREAS OF GERMANY THE DAX 30STOCK INDEX SLIPPED 039 POINT TO 211562 RECOVERING FROM A LOW OF 209754 OF THE DAX ISSUES 15 ROSE AND 15 FELL PARTICIPANTS WERE REASSURED BY THE INDEX'S ABILITY TO RESIST DOWNWARD PRESSURE FROM LOWER BOND PRICES AND A FALLING DOLLAR IN CURRENCY DEALINGS AS WELL AS EXPECTATIONS THAT GERMANY WON'T CUT INTEREST RATES THIS WEEK IN PARIS STOCKS SCORED A LATE RISE REBOUNDING FROM MONDAY'S STEEP DECLINE WITH A BOOST FROM WALL STREET'S STRONGER OPENING AND OVERCOMING PRESSURE FROM FUTURESRELATED SELLING IN ZURICH EQUITIES FIRMED AS SOME INVESTORS TOOK ADVANTAGE OF THE RECENT CORRECTIONA 64 DROP THIS MONTHTO COVER SHORT OR OVERSOLD POSITIONS AND PICK UP BARGAINS IN STOCKHOLM PRICES ADVANCED BROADLY ON IMPROVED VOLUME BECAUSE OF HEAVY DEMAND FROM INSTITUTIONAL BUYERS ON POSITIVE SWEDISH CORPORATE NEWS AND ANTICIPATION OF STRONG EARNINGS REPORTS IN HONG KONG PRICES EDGED UP AFTER A REBOUND IN THE SESSION'S FINAL FEW MINUTES STOCKS SPENT MOST OF THE DAY WITH LOSSES DOWN 18 AT ONE POINT AMID LOW TURNOVER BLAMED ON MIXED SENTIMENT ABOUT PROSPECTS TECHNICAL FACTORS SUCH AS PERCEIVED SUPPORT POINTS ON THE MAIN INDEX STRONGLY INFLUENCED ACTIVITY THE MARKET WHICH PLUNGED MONDAY WAS PRESSURED FROM THE OPENING BY MONDAY'S WEAKNESS OF HONG KONG STOCKS THAT ALSO TRADE IN LONDON HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9402160087 940216 TECHNOLOGY & HEALTH STUDY POINTS TO ANOTHER TENTATIVE LINK BETWEEN RED MEAT AND PROSTATE CANCER BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS FORGED ANOTHER TENTATIVE LINK IN A THEORY IMPLICATING MEAT FAT IN PROSTATE CANCER MEN WHO ATE BEEF PORK OR LAMB AS A MAIN DISH FIVE TO SIX TIMES A WEEK WERE 25 TIMES MORE LIKELY TO HAVE PROSTATE CANCER THAN MEN WHO ATE SUCH RED MEATS LESS THAN ONCE A WEEK THE LATEST ANALYSIS OF A LONGRUNNING STUDY OF 22000 MALE PHYSICIANS SHOWED THE SAME ANALYSIS FOUND THAT MEN WITH HIGH BLOOD LEVELS OF ALPHALINOLENIC ACID A FATTY ACID THAT RESEARCHERS SAID COMES FROM MEAT RAN TWO TO THREE TIMES THE RISK OF DEVELOPING PROSTATE CANCER AS MEN WITH LOW BLOOD LEVELS OF THIS ACID THE NEW STUDY CALLED THE PHYSICIANS' HEALTH STUDY WASN'T DESIGNED TO PROVE OR DISPROVE THAT EATING MEAT CAUSES OR AGGRAVATES PROSTATE CANCER REPORTING THE FINDING IN THIS WEEK'S JOURNAL OF THE NATIONAL CANCER INSTITUTE OR NCI THE SCIENTISTS DECLARED WE EMPHASIZE THAT THE RESULTS SHOULD BE VIEWED AS TENTATIVE AND PRELIMINARY THE STUDY WAS CHALLENGED BY A NUTRITIONIST FOR THE MEAT INDUSTRY IT IS HOWEVER THE SECOND POPULATION STUDY IN A YEAR TO LINK MEAT CONSUMPTION TO PROSTATE CANCER IN OCTOBER RESEARCHERS MONITORING THE HEALTH OF MORE THAN 51000 DENTISTS VETERINARIANS OPTOMETRISTS OSTEOPATHS PODIATRISTS AND PHARAMACISTS IN THE HEALTH PROFESSIONALS FOLLOWUP STUDY REPORTED THAT MEN WHO ATE THE MOST MEAT WERE 26 TIMES MORE LIKELY TO DEVELOP ADVANCED PROSTATE CANCER THAN MEN WHO ATE THE LEAST AMOUNT OF MEAT THE TWO STUDIES ARE BEING CONDUCTED BY DIFFERENT RESEARCH TEAMS BOTH ASSOCIATED WITH THE HARVARD MEDICAL SCHOOL AND THE HARVARD SCHOOL OF PUBLIC HEALTH IN BOSTON WE'RE BAFFLED SAID ERIC HENTGES DIRECTOR OF NUTRITION RESEARCH FOR THE NATIONAL LIVESTOCK AND MEAT BOARD IN CHICAGO HE NOTED THAT BOTH STUDIES EMPHASIZED A LINK BETWEEN PROSTATE CANCER AND THE LEVELS OF LINOLENIC FATTY ACID IN THE BLOOD OF THE MEN LINOLENIC ACID IS ALSO A COMPONENT OF VEGETABLE OILS DR HENTGES SAID THE LEVELS OF LINOLENIC ACID IN SOYBEAN OIL IS SEVEN TIMES HIGHER THAN IN MEAT HE SAID YET NEITHER STUDY LOOKED INTO ANY RELATIONSHIP BETWEEN CONSUMPTION OF VEGETABLE OILS AND PROSTATE CANCER DR HENTGES SAID HOW THEY CAN MAKE A MEAT STORY OUT OF THIS IS BEYOND ME IT IS REALLY A LINOLENIC ACID STORY THE HARVARD SCIENTISTS WHO CARRIED OUT THE STUDY OF THE PHYSICIANS DID IN FACT SUGGEST THAT THE ALPHALINOLENIC ACID LEVELS MAY BE THE KEY TO THE LINK BETWEEN DIET AND PROSTATE CANCER THEY NOTED THAT THE RISK OF PROSTATE CANCER IN THE PHYSICIANS SEEMED TO JUMP WHEN LEVELS OF ALPHALINOLENIC ACID IN THE BLOOD TOPPED A CERTAIN THRESHHOLD THIS SUGGESTS THAT LOWERING LINOLENIC ACID LEVELS BELOW A CERTAIN THRESHHOLD COULD RESULT IN FAVORABLE EFFECTS ON PROSTATE CANCER RISK THEY SAID WE PRESUME THAT OUR STUDY POPULATION IS ONE IN WHICH ALPHALINOLENIC LEVELS ARE FAIRLY HIGH DUE TO CONSUMPTION OF ANIMAL FATS AND PROCESSED FOODS CONTAINING LINOLENIC ACID ACCORDING TO PETER H GANN WHO HAS MOVED TO THE NORTHWESTERN UNIVERSITY MEDICAL SCHOOL AND HIS COLLEAGUES AT HARVARD TWO CALIFORNIA SCIENTISTS IN AN EDITORIAL IN THE SAME NCI JOURNAL SAID THE LASTEST FINDINGS BOLSTER THEIR THEORY THAT FAT IN THE DIET ESPECIALLY ANIMAL FAT IS LINKED TO PROSTATE CANCER THOSE SCIENTISTS SPECULATED THAT DIETARY FAT CAN AFFECT THE BODY'S LEVELS OF SEX HORMONES POSSIBLY RAISING LEVELS OF TESTOSTERONE THE MALE SEX HORMONE THEREBY BOOSTING THE RISK OF PROSTATE CANCER THERE IS SOME EVIDENCE THAT REDUCTION IN DIETARY FAT IN ADULTHOOD WILL REDUCE CIRCULATING TESTOSTERONE LEVELS NOTED DONALD K ROSS OF THE USC/NORRIS COMPREHENSIVE CANCER CENTER IN LOS ANGELES AND BRIAN E HENDERSON OF THE SALK INSTITUTE IN LA JOLLA THEY ADDED THAT DIETARY INTERVENTIONS EARLY AND CONTINUOUSLY IN LIFE MAY WELL HOLD THE GREATEST HOPE FOR REDUCING THE RISK OF PROSTATE CANCER 9402160086 940216 INTERNATIONAL CIGA CAPITAL WRITEDOWN MILAN ITALIAN LUXURY HOTEL CHAIN CIGA SPA SAID ITS SHAREHOLDERS APPROVED A PREVIOUSLY ANNOUNCED PLAN TO WRITE DOWN ITS ORDINARY CAPITAL TO 57263 BILLION LIRE 343 MILLION FROM 150793 BILLION LIRE BRINGING THE VALUE OF EACH ORDINARY SHARE TO ABOUT 379 LIRE SHAREHOLDERS WILL BE ISSUED 30 NEW ORDINARY SHARES FOR EVERY 79 ORDINARY SHARES HELD WITH THE AIM OF BRINGING THE NOMINAL VALUE OF EACH SHARE BACK TO 1000 LIRE THE COMPANY SAID CIGA WENT INTO DEFAULT ON ITS LOANS LAST YEAR AND ITS SHARES WERE SUSPENDED FROM THE MILAN STOCK EXCHANGE 9402160085 940216 MEDIA & MARKETING HEARST IN HOWTO' SOFTWARE NEW YORK HEARST CORP SAID IT ACQUIRED A MINORITY INTEREST IN BOOKS THAT WORK A PALO ALTO CALIF COMPANY THAT PRODUCES HOWTO SOFTWARE TERMS WEREN'T DISCLOSED HEARST SAID THE COMPANIES WILL DEVELOP AND MARKET MULTIMEDIA SOFTWARE TIED TO APPROPRIATE HEARST MAGAZINE TITLES SUCH AS POPULAR MECHANICS AND HOUSE BEAUTIFUL A SPOKESMAN SAID THAT POPULAR MECHANICS MIGHT PRODUCE A COMPUTER DISK ON HOW TO BUILD A DECK AROUND YOUR POOL WHICH WOULD ALLOW A USER TO PICK A DESIGN CALCULATE HOW MUCH LUMBER WOULD BE NEEDED AND THEN GET TOLLFREE PHONE NUMBERS OF SUPPLIERS 9402160084 940216 WHO'S NEWS METRICOM INC METRICOM INC LOS GATOS CALIF FORMER DEFENSE SECRETARY DONALD RUMSFELD AND THREE BUSINESS EXECUTIVES WERE NAMED DIRECTORS EXPANDING THE SIZE OF THE BOARD TO NINE FROM FIVE MR RUMSFELD 61 YEARS OLD SERVED AS WHITE HOUSE CHIEF OF STAFF IN THE NIXON ADMINISTRATION AND AS DEFENSE SECRETARY UNDER PRESIDENT FORD THE OTHER NEW MEMBERS ARE ROBERT S CLINE 56 CHAIRMAN AND CHIEF EXECUTIVE OF THE AIRBORNE EXPRESS UNIT OF AIRBORNE FREIGHT CORP SEATTLE MIKE SLADE 36 PRESIDENT AND CHIEF EXECUTIVE OF CLOSELY HELD STARWAVE CORP A BELLEVUE WASH SUPPLIER OF MULTIMEDIA SOFTWARE AND ROBERT M SMELICK 51 MANAGING PRINCIPAL AND DIRECTOR OF CLOSELY HELD STERLING PAYOT CO AN INVESTMENT BANKING FIRM BASED IN SAN FRANCISCO METRICOM IS A SUPPLIER OF WIRELESS DATA COMMUNICATION NETWORKS 9402160083 940216 IONICS UNIT PROJECT NEAR PRAGUE WATERTOWN MASS IONICS INC SAID ITS RESOURCES CONSERVATION CO INTERNATIONAL UNIT SIGNED A 402 MILLION CONTRACT WITH DIAMO SP A CZECH REPUBLIC STATE ENTERPRISE TO PROVIDE A SYSTEM TO TREAT WASTE THAT THREATENS TO CONTAMINATE DRINKING WATER NEAR PRAGUE THE WATERTREATMENT CONCERN SAID DIAMO WHICH IS RESPONSIBLE FOR CLEANING UP A FORMER URANIUMMINING SITE WILL USE RESOURCES' SYSTEM TO TREAT AN UNDERGROUND RESERVOIR OF SULFURIC ACID SOLUTION FORMED IN THE PROCESS OF EXTRACTING URANIUM ORE THE SYSTEM IS SCHEDULED TO BEGIN IN TWO YEARS IONICS SAID 9402160082 940216 LEISURE & ARTS RIMSKY REEMERGES ON NATIVE GROUND BY MANUELA HOELTERHOFF ST PETERSBURG RUSSIA AS STORIES GO NICOLAI RIMSKYKORSAKOV'S RARELY STAGED THE LEGEND OF THE INVISIBLE CITY OF KITEZH ABOUT A BELEAGUERED TOWN THAT SINKS TO THE BOTTOM OF A LAKE IS NOT ONE THAT KEEPS YOU AT THE EDGE OF YOUR SEAT IF THE COMPOSER'S SHEHERAZADE WERE TELLING IT SHE WOULD BE KILLED NOT FAR INTO THE FIRST ACT AS THE PIECE MOSEYED ALONG THE OTHER NIGHT AT THE MARIINSKY KIROV THEATER IT SOMETIMES SEEMED WE HAD BEEN SITTING THERE FOR MORE THAN ONE AND MAYBE A THOUSAND BUT I DOUBT THERE WERE MANY MALCONTENTS AMONG THE LARGE CONTINGENT OF INTERNATIONAL VISITORS AND MEMBERS OF THE PRESS WHO WERE GATHERED HERE FOR A WEEK LONG RIMSKYKORSAKOV FESTIVAL IN ONE OF THE PRETTIEST THEATERS IN THE WORLD WHERE THE HEAT DOESN'T ALWAYS WORK BUT MOST EVERYTHING ELSE SEEMS TO IN ONE STRANGE WAY OR ANOTHER IT HASN'T BEEN EASY BUT THANKS TO THE KIROV OPERA'S VASTLY TALENTED GLOBECIRCLING MUSIC DIRECTOR VALERY GERGIEV THE COMPANY HAS TRANSFORMED ITSELF FROM THE WEAK SISTER OF THE KIROV BALLET INTO ONE OF THE MORE INTERESTING COMPANIES IN THE WORLD WHILE THE ONCELEGENDARY BOLSHOI IS LITERALLY FALLING DOWN ITS SHAKY BUILDING A SAD SYMBOL OF PARLOUS TIMES THE KIROV OPERA IS SCRAPPILY MOVING FORWARD INTO A NEW FUTURE IT TOURS CONSTANTLY MAKES LOTS OF RECORDS WITH PHILIPS WHICH WAS BUSILY TAPING IN ST P LOOKS FOR COPRODUCTION DEALS WITH OTHER COMPANIES AND IS LEARNING HOW TO PASS THE BEGGING BOWL IN BOARDROOMS AROUND THE WORLD CAN'T YOU FIND ME A MILLIONDOLLAR CORPORATE SPONSOR MR GERGIEV WAS ASKING HALFSERIOUSLY SEATED IN HIS OFFICE CLOSE TO MIDNIGHT AFTER A HECTIC DAY THAT INCLUDED A GRINDINGLY LONG DRESS REHEARSAL FOR KITEZH AN HOUR'S REHEARSAL FOR THE EVENING'S SYMPHONIC CONCERT AND THEN THE TWOHOURSPLUS CONCERT ITSELF IN ANOTHER PART OF THE WORLD HIS NEXT MEETING WOULD BE ABOUT OVERTIME WITH THE SCREAMING HEAD OF THE ORCHESTRA UNION BUT HE'S EVERYBODY'S MAIN MEAL TICKET AND HARDLY SPARING OF HIMSELF HOLDING A CIGARETTE IN ONE HAND AND A TIE IN THE OTHER HE LOOKED SO BEAT I THOUGHT HE MIGHT CONFUSE THE TWO BUT PLEASE DON'T JUST SAY WE'RE STRUGGLING SAY WE ARE PLANNING HE ADDED WITH THE FORTHRIGHT CHARM THAT ALSO MARKS HIS PODIUM APPEARANCES RIMSKY COULD NOT HAVE ASKED FOR A BETTER APOSTLE DURING THIS EPIC TRIBUTE WHICH CELEBRATED THE 150TH ANNIVERSARY OF HIS BIRTH IN 1844 WITH THREE FULLSCALE OPERAS AND SEVERAL CONCERTS THAT INCLUDED WORKS BY CONTEMPORARIES AND HIS BEST STUDENT IGOR STRAVINSKY SADKO A FAIRY TALE WHOSE MINSTREL HERO FALLS IN LOVE WITH THE DAUGHTER OF THE OCEAN STARTED THE FESTIVAL THE MAID OF PSKOV AND UNLUCKILY FOR HER LONGLOST DAUGHTER OF IVAN THE TERRIBLE APPEARED AT THE END KITEZH ALL FOUR HOURS OF IT FILLED ANY WAKING TIME LEFT OVER IN THE MIDDLE EVEN AT THE PREMIERE IN 1907 A WORN CRITIC WONDERED WHETHER IT MIGHT NOT HAVE BEEN A MORE ENJOYABLE EVENING MINUS ONE ACT ONLY ONE THOSE OF US WHO HAD COME ONLY FOR KITEZH HAD TO RELY ON ENERGIZING HELPINGS OF ICE CREAM WEIGHED OUT DURING INTERMISSIONS LIKE SEVRUGA ON A TINY SET OF SCALES BY A VERY CAREFUL SERVER SOME THINGS STILL NEED CHANGING AT THE KIROV THOUGH RIMSKY WROTE AN ABUNDANCE OF OPERAS THEY ARE NOT WELLKNOWN OUTSIDE RUSSIA ALTHOUGH THE TSAR'S BRIDE WITH ITS RAVISHING ARIA FOR THE GENTLY EXPIRING FATALLY POISONED MARFA AND THE GOLDEN COCKEREL A TYPICALLY OVERWROUGHT COMIC FANTASY ARE HEARD NOW AND AGAIN MOSTLY RIMSKY IS FAMOUS FOR REVISING HIS FRIEND MODESTE MUSSORGSKY'S BORIS GODUNOV FROM THE TWO TROUBLED VERSIONS MUSSORGSKY LEFT BEHIND IN A SEA OF BOOZE PURISTS BLAME RIMSKY FOR MAKING THE INTENTIONALLY DANK AND CLANGOROUS SCORE SOUND TOO BRIGHT AND CIVILIZED BUT WERE IT NOT FOR HIM BORIS WOULD HAVE LANGUISHED A LOT LONGER BESIDES YOU REALLY HAVE TO BE HIGHMINDED TO PREFER MUSSORGSKY'S ORIGINAL CORONATION SCENE WITH LESS BELLS BUT NOW AS THIS OUTING TO THE KIROV DID REMIND US IT IS TIME FOR RIMSKY'S OWN REPUTATION TO BE BURNISHED ANEW HE IS NOT A COMPOSER OF INTERESTING CHARACTERS AND FORCEFUL DRAMA BUT MAY NIGHT SNOW MAIDEN AND SADKO JUST FOR EXAMPLE ALL REVEAL THE FANTASY AND SHIMMERING LYRICAL FINENESS THAT ARE HIS MAIN CLAIM EVEN KITEZH HAD MUCH LOVELY MUSIC WHICH WOVE ITSELF THROUGH A COMPLEXLY UNINTERESTING PLOT IN PARTICULAR AN EARLY EPIC LOVE DUET BETWEEN THE HEROINE FEVRONIA AN ECOFRIENDLY SPIRIT AND HER SHORTLIVED PRINCE GALINA GORCHAKOVA AND YURI MAZURIN BOTH PROVED ADMIRABLY LONGWINDED THE PRINCE'S NEXT APPEARANCE IS AT THE END AS A GHOST IN INVISIBLE KITEZH WHICH DISAPPEARED FROM EARTH TO AVOID THE BRUTAL TARTARS WHO ALSO HARASS FEVRONIA AND HER CONSTANT COMPANION AN ANNOYING DRUNKEN HOLY FOOL NAMED GRISHKA INFLUENCED BY WAGNER UNFORTUNATELY NOT BY LOHENGRIN BUT BY THE ENDLESSLY PIOUS PARSIFAL RIMSKY'S KITEZH IS ESSENTIALLY A STATIC ASSORTMENT OF TABLEAUX WHOSE DEEPEST MEANING MAY BE RESERVED FOR RUSSIANS ITS RELIGIOUS OVERTONES SEEM TO ACCOUNT FOR KITEZH'S LONG DISAPPEARANCE FROM THE KIROV'S STAGE BUT IN ANOTHER INDICATION OF CHANGING TIMES ST PETERSBURG'S ORTHODOX METROPOLITAN ATTENDED KITEZH'S RETURN PROMINENTLY SEATED IN WHAT WAS ONCE THE TSAR'S BOX AND LATER PROBABLY CONTAINED SERGEI KIROV A POWERFUL PARTY LEADER STALIN IS BELIEVED TO HAVE MURDERED THOUGH HE WEPT BIG TEARS AND BLAMED EVERYBODY ELSE KIROV LIKED OPERA BUT EVEN SO THE COMPANY IS GRADUALLY DIVESTING ITSELF OF THE TAINTED ASSOCIATION THE NAME KIROV USUALLY APPEARS JUST SO IN PARENTHESES NEXT TO THE HALL'S ORIGINAL NAME MARIINSKY SOMEWHAT DISAPPOINTINGLY THE PRODUCTION BY DIRECTOR ALEXEI STEPANIUK AND SET DESIGNER MART KITAEV AVOIDED THE FLAMBOYANTLY PAINTED SETS ASSOCIATED WITH TRADITIONAL RUSSIAN STAGECRAFT IN FAVOR OF SCRIMS AND PROJECTIONS BUT THERE WERE MESMERIZING MOMENTS IN PARTICULAR KITEZH VANISHING IN A DREAMY SILVERY FOG A CAPACITY AUDIENCE WHICH PAID THE EQUIVALENT OF 3 FOR AN ORCHESTRA SEAT SEEMED PLEASED TO HAVE BEEN THERE AND EQUALLY PLEASED TO GO HOME EVEN IF IT MEANT BRAVING ST PETERSBURG'S FIVE DEGREE TEMPERATURE AND FAILING TRANSPORTATION SYSTEM FOR AMERICAN RIMSKYPHILIACS HOPING TO HEAR SOME OF THE FESTIVAL'S MUSIC ON DISK IT'S SLIM PICKINGS THERE ARE ENOUGH SHEHERAZADE RECORDINGS TO PUT YOU INTO A COMA BUT FEW OPERA SETS AND THOSE MOSTLY ON SMALLER LABELS CHANDOS FOR INSTANCE RECENTLY RELEASED MOZART AND SALIERI AN INTRIGUING ONEACTER COMPOSED IN 1898 FOR THE LEGENDARY BASS CHALIAPIN AS THE MIRTHLESS STRIVER WHO POURS POISON INTO MOZART'S CHAMPAGNE THE LIBRETTO IS ESSENTIALLY A SETTING OF A POEM BY PUSHKIN WHO IN ANOTHER ERA MIGHT HAVE CHALLENGED AMADEUS AUTHOR PETER SHAFFER TO A DUEL FOR APPROPRIATING SO MANY OF HIS IDEAS FAMED SOVIET SONGBIRD GALINA VISHNEVSKAYA WHO STAGED THE TSAR'S BRIDE IN WASHINGTON DC A FEW YEARS AGO SINGS MARFA WITH AFFECTING PATHOS AND THIN TONE ON A MELODYA SET RECORDED IN 1973 AT THE BOLSHOI AND NOW RELEASED BY LE CHANT DU MONDE RIMSKY'S FIRST VERY SKILLFUL OPERA THE MAID OF PSKOV IS AVAILABLE IN A 1969 LIVE ITALIAN PERFORMANCE CONDUCTED BY THOMAS SCHIPPERS WITH BORIS CHRISTOFF AS IVAN AND NICOLETTA PANNI AS LA PSKOVITANA GREAT OPERA PERFORMANCES THE VIDEO SELECTION INCLUDES A STUNNINGLY ATMOSPHERIC BLACKANDWHITE FILM OF THE TSAR'S BRIDE MADE IN THE SOVIET UNION IN THE 1960S AND NOW RELEASED ON THE KULTUR LABEL AND A COLORFUL HARRY KUPFER PRODUCTION OF RIMSKY'S FARCICAL THE LEGEND OF TSAR SALTAN VIEW VIDEO COMPLETE WITH THE FLIGHT OF THE BUMBLEBEE IN ITS ORIGINAL SETTING 9402160081 940216 TEXAS JOURNAL WINNERS & LOSERS DALLAS FREETRADERS DALLAS REPORTEDLY HAS BEEN PICKED FOR THE SECRETARIAT THAT WILL OVERSEE THE NORTH AMERICAN FREE TRADE AGREEMENT'S LABOR ISSUES CARSWELL THE FORMER FORT WORTH AIRFORCE BASE WILL BECOME THE MEDICAL CENTER FOR ALL FEMALE FEDERAL PRISON INMATES GTECH THE RHODE ISLAND COMPANY WON A 200 MILLION CONTRACT TO BUILD AN ELECTRONIC FOODSTAMP PROGRAM IN TEXAS RIO GRANDE VALLEY A SURVEY ASSAILED BY LOCAL OFFICIALS MINIMIZES THE REGION'S DRUG PROBLEMS WHICH COULD LEAD TO REDUCED FUNDING CAPITAL TICKET AGENCY THE BEDFORD COMPANY REFUNDED MORE THAN 500000 TO 600 MEXICAN FANS WHO DIDN'T GET THEIR SUPER BOWL TICKETS HEALTH EDUCATION THE TEXAS BOARD OF EDUCATION VOTED TO DELETE OR CHANGE HUNDREDS OF REFERENCES TO SEXUALITY AND ANATOMICAL PARTS FROM HIGHSCHOOL HEALTH TEXTBOOKS 9402160080 940216 ABREAST OF THE MARKET STOCKS CLIMB AS DOLLAR RECOVERS SOME GROUND AGAINST THE YEN BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK RELIEVED BY A PARTIAL RECOVERY IN THE VALUE OF THE US DOLLAR INVESTORS BID STOCK PRICES SOLIDLY HIGHER STEEP LOSSES IN THE DOLLAR AGAINST THE JAPANESE YEN ERASED A MIDDAY RALLY MONDAY BUT YESTERDAY THE STOCKMARKET BUYING RESUMED AS THE US CURRENCY RETOOK NEARLY ONEFOURTH OF THE GROUND LOST A DAY EARLIER THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2421 OR 062 TO 392827 ECONOMICALLY SENSITIVE COMPONENTS LED THE ADVANCE INCLUDING ALLIEDSIGNAL WHICH ROSE 1 3/4 TO 79 3/4 AND GOODYEAR TIRE WHICH JUMPED 1 1/2 TO 47 1/2 BROADBASED INDEXES ALSO ADVANCED AND THE NASDAQ STOCK MARKET RECORDED ITS SECONDSTRAIGHT DAY OF SOLID GAINS ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES LED DECLINERS 1198 TO 882 VOLUME ON THE EXCHANGE JUMPED TO ABOUT 3067 MILLION SHARES FROM 2631 MILLION MONDAY THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND FELL 1/32 TO 97 8/32 TO YIELD 645 UNCHANGED FROM MONDAY THE SEARCH FOR VALUE HELPED LIFT MANY CONSUMERPRODUCTS SHARES SUCH AS FOOD ISSUES SAID EDWARD NICOSKI A MARKET ANALYST AT PIPER JAFFRAY KELLOGG JUMPED 1 3/4 TO 53 3/8 HERSHEY RALLIED 2 7/8 TO 51 1/2 AND RALSTONPURINA ADDED 1 TO 44 1/8 THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 229 OR 049 TO 47252 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 110 OR 042 TO 26236 THE NASDAQ COMPOSITE INDEX WHICH ROSE 406 MONDAY WAS UP 467 OR 059 TO 79012 AIDED BY TECHNOLOGY AND HEALTHCARE ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS THE LAGGARD FOR A THIRDSTRAIGHT SESSION EASING 007 OR 001 TO 47484 SHARES OF MOTOROLA ROSE 2 1/8 TO 101 3/8 AS US TRADE REPRESENTATIVE MICKEY KANTOR CONFIRMED THAT US IS PLANNING TRADE SANCTIONS AGAINST JAPAN IF THAT COUNTRY DOESN'T LIVE UP TO AN AGREEMENT TO OPEN ITS MARKETS FURTHER FOR THE SCHAUMBURG ILL COMPANY'S CELLULAR TELEPHONES THE DISPUTE OVER CELLULAR PHONES IS JUST PART OF THE TRADE TENSIONS BETWEEN THE US AND JAPAN THAT HAVE DISRUPTED FINANCIAL MARKETS SINCE FRIDAY VIACOM'S CLASS B STOCK DROPPED 1 7/8 TO 28 ON THE AMEX AND QVC NETWORK ADDED 1 3/4 TO 50 1/4 AFTER QVC CONCEDED DEFEAT IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS SHARES OF THE NEW YORK MEDIA COMPANY ROSE 7/8 TO 77 ON THE BIG BOARD BELLSOUTH WHICH BACKED QVC ADDED 1/8 TO 56 1/8 WHILE BLOCKBUSTER ENTERTAINMENT WHICH ALSO WILL MERGE WITH VIACOM ADDED 3/8 TO 25 1/4 ELF AQUITAINE'S AMERICAN DEPOSITARY RECEIPTS JUMPED 1 1/8 TO 36 3/4 ON HEAVY VOLUME OF 47 MILLION SHARES DEMAND WAS HIGH FOR A PUBLIC OFFERING OF THE OIL AND GAS COMPANY'S SHARES THAT WAS PRICED LATE MONDAY THE ISSUE WAS SOLD BY THE FRENCH GOVERNMENT NATIONAL SEMICONDUCTOR RALLIED 1 3/4 TO 20 5/8 PAINEWEBBER UPGRADED A RATING ON THE SANTA CLARA CALIF CHIPMAKER'S STOCK TO BUY FROM ATTRACTIVE OTHER CHIP SHARES JUMPED MICRON TECHNOLOGY GAINED 2 7/8 TO 61 1/2 TEXAS INSTRUMENTS ROSE 2 7/8 TO 76 3/8 AND INTEL INCREASED 1 1/8 TO 65 ON THE NASDAQ STOCK MARKET MOTOROLA MEANWHILE ALSO IS A BIG PLAYER IN THE SEMICONDUCTOR INDUSTRY UNITED HEALTHCARE SLIPPED 5/8 TO 85 AFTER THE MINNETONKA MINN COMPANY AGREED TO ACQUIRE RAMSAYHMO THROUGH A STOCK SWAP VALUED AT 500 MILLION SHARES OF CORAL GABLES FLA RAMSAYHMO ROCKETED 9 3/8 OR 204 TO 55 1/4 OTHER HEALTHMAINTENANCEORGANIZATION STOCKS ADVANCED OXFORD HEALTH PLANS OF NORWALK CONN JUMPED 3 1/4 TO 65 1/4 US HEALTHCARE OF BLUE BELL PA INCREASED 3 1/4 TO 63 3/4 AND FHP INTERNATIONAL OF FOUNTAIN VALLEY CALIF ROSE 1 5/8 TO 28 5/8 EACH TRADES ON NASDAQ ATLANTIC RICHFIELD SHED 3 1/4 TO 104 3/8 DEAN WITTER REYNOLDS ANALYST EUGENE NOWAK CUT HIS ESTIMATE FOR THE LOS ANGELES OIL AND GAS COMPANY'S 1994 OPERATING INCOME CITING CONTINUED WEAKNESS IN OIL PRICES CRUDEOIL FUTURES FOR MARCH DELIVERY BRIEFLY MOVED UNDER 14 A BARREL IN NEW YORK YESTERDAY BEFORE ENDING LITTLE CHANGED SCIENTIFICATLANTA INCREASED 2 TO 29 THE NORCROSS GA COMPANY AGREED TO DEVELOP MULTIMEDIA PRODUCTS JOINTLY WITH ORACLE SYSTEMS SEPARATELY SALOMON BROTHERS RAISED SCIENTIFICATLANTA SHARES TO BUY FROM NEUTRAL ORACLE'S STOCK INCHED UP 7/8 TO 33 5/8 ON NASDAQ SALOMON CUT SYNOPTICS COMMUNICATIONS A SANTA CLARA CALIF NETWORKING PRODUCTS COMPANY TO HOLD FROM BUY THE STOCK LOST 1 3/8 TO 26 1/8 ON NASDAQ CML GROUP INCREASED 1 1/2 TO 21 1/4 CNBC CABLE TELEVISION REPORTED THAT INVESTMENT MANAGER MARTIN SANDS OF SANDS BROS & CO EXPECTS STRONG EARNINGS FROM THE ACTON MASS MAKER OF THE NORDICTRACK EXERCISE MACHINE THAT SANDS SAID COULD TRIGGER A SOCALLED SHORT SQUEEZE AND SHARP GAINS IN THE STOCK OF WHICH SANDS BROS IS A BIG HOLDER RELIANCE GROUP HOLDINGS SLIPPED 3/4 TO 6 SEVERAL ANALYSTS TRIMMED THEIR 1994 EARNINGS FORECASTS FOR THE NEW YORK INSURANCE COMPANY AFTER IT REPORTED 1993 RESULTS YESTERDAY RATHER THAN BEING A HEADACHE LIKE THEY WERE MONDAY THE DOLLAR AND THE INTEREST RATE MARKETS WERE BENIGN YESTERDAY SAID GREG NIE A TECHNICAL ANALYST AT KEMPER SECURITIES THAT ENCOURAGED INVESTORS TO BUY SOME OF THE STOCKS THEY FELT WERE STILL UNDERVALUED AFTER THE MARKET'S STEEP PLUNGE ON FEB 4 HE SAID THE FACT THAT WE ARE GETTING BOTTOMFISHING IN SOME OF THESE DEPRESSED AREAS WOULD INDICATE THAT THERE IS STILL AN ABUNDANCE OF MONEY OUT THERE LOOKING FOR A PLACE SAID PIPER JAFFRAY'S MR NICOSKI THAT'S A POSITIVE SIGN FOR THE MARKET ALTHOUGH HE SAID A MODEST CORRECTION MIGHT STILL BE IN THE OFFING 9402160079 940216 FOREIGN EXCHANGE DOLLAR SEEN OVERSOLD AGAINST THE YEN ON TRADETALKS COLLAPSE RECOVERS A BIT BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RECOVERED SOMEWHAT AGAINST THE YEN YESTERDAY PUSHED HIGHER ON SENTIMENT IT HAD BEEN OVERSOLD IN THE DIZZYING DESCENT THAT FOLLOWED THE FAILURE OF THE RECENT USJAPAN TRADE TALKS IN WASHINGTON THE DOLLAR REFUSED TO BUDGE OUT OF A FAIRLY NARROW RANGE AS PLAYERS BRUSHED ASIDE THE ANNOUNCEMENT BY US TRADE REPRESENTATIVE MICKEY KANTOR THAT JAPAN'S VIOLATION OF AN AGREEMENT ON CELLULAR TELEPHONES MAY LEAD TO RETALIATORY MEASURES IN COMING DAYS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10370 YEN UP FROM 10265 YEN LATE MONDAY IN NEW YORK ON MONDAY THE DOLLAR SKIDDED MORE THAN FOUR YEN FROM 10680 YEN LATE FRIDAY IN NEW YORK IT TOUCHED AN INTRADAY LOW OF 101 YEN THE DOLLAR ALSO REGAINED SOME OF THE GROUND IT LOST AGAINST EUROPEAN CURRENCIES WHICH APPEARED TO MIMIC DOLLARYEN FLUCTUATIONS THROUGHOUT THE DAY THE US CURRENCY CHANGED HANDS AT 17305 MARKS LATE IN NEW YORK UP FROM 17273 MARKS LATE MONDAY STERLING WAS TRADING AT 14735 DOWN FROM 14840 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10360 YEN AND AT 17308 MARKS WE HAVE BEEN PURSUING ACCESS TO THIS MARKET SINCE 1985 MR KANTOR SAID IN A WIDELY AWAITED NEWS CONFERENCE DURING THE NORTH AMERICAN AFTERNOON THREE AGREEMENTS AND ALMOST 10 YEARS LATER US CELLULARTELEPHONE SYSTEMS REMAIN EFFECTIVELY EXCLUDED FROM OVER HALF THE JAPANESE MARKETS DESPITE MR KANTOR'S TOUGH WORDS TRADERS NOTED THAT HE DIDN'T MAKE ANY COMMENT ON RECENT CURRENCY FLUCTUATIONS LEAVING THE MARKET TO ACT MAINLY ON TECHNICAL FACTORS PEOPLE WERE EXTREMELY SHORT ON DOLLARS AND WERE EXPECTING SOMETHING MORE STRINGENT FROM KANTOR SAID VICTOR POLCE FOREIGNEXCHANGE MANAGER AT COMMERZBANK IN NEW YORK MR POLCE SAID TRADERS ARE WORRIED ABOUT HOLDING OVERSOLD DOLLAR POSITIONS FOLLOWING MONDAY'S FURIOUS DOLLAR SELLOFF AND ARE FEELING VULNERABLE TO AN EQUALLY VOLATILE CORRECTION TRADERS SEE THAT THE RUBBER BAND HAS BEEN TRULY STRETCHED TO THE LIMIT AND THE SNAPBACK COULD BE VIOLENT HE SAID ANOTHER PROBLEM IS THAT TRADERS ARE DEEPLY DIVIDED OVER WHAT EFFECT THE IMPOSITION OF TRADE SANCTIONS WOULD HAVE IN THE DIRECTION OF THE DOLLARYEN THE US WILL DECIDE SOON ON WHAT ACTION TO TAKE OVER THE FAILURE OF THE TRADE TALKS MR KANTOR SAID YESTERDAY TRADERS ARE QUICK TO NOTE THAT FUNDAMENTAL ECONOMIC FACTORS ARGUE FOR A MUCH STRONGER DOLLAR AND THAT TRADE SANCTIONS WOULD ONLY HURT JAPAN'S FLAGGING ECONOMY EVEN MORE I WOULD VENTURE TO GUESS THE DOLLAR SHOULD BE IN THE 120S AGAINST THE YEN BASED ON ECONOMIC FUNDAMENTALS SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK HE NOTED THAT THE JAPANESE STOCK MARKET REMAINS WEAK AND THE RECENTLY UNVEILED ECONOMICSTIMULUS PACKAGE LOOKS TOO SMALL TO PULL JAPAN OUT OF ITS RECESSION THE DOLLAR BEGAN ITS HALTING MOVE UPWARD YESTERDAY ON REPEATED INTERVENTION BY THE BANK OF JAPAN WHICH BOUGHT AN ESTIMATED 3 BILLION IN A BID TO BOOST THE US CURRENCY ACCORDING TO SOME ANALYSTS BUT EVEN CENTRAL BANK INTERVENTION WAS SEEN LACKING THE FIREPOWER TO MOVE THE DOLLAR APPRECIABLY HIGHER I THINK THE MARKET IS GETTING JADED TO CENTRAL BANK INTERVENTION SAID CATHY WITT VICE PRESIDENT FOREIGN EXCHANGE AT CONTINENTAL BANK IN CHICAGO THREE BILLION DOLLARS ISN'T ENOUGH TO PUSH AROUND A MARKET THAT TYPICALLY TRADES IN TRILLIONS OF DOLLARS SHE ADDED 9402160078 940216 MARKETING & MEDIA ADVERTISING SEARS RAISES ITS MARKETING BUDGET AMID A SHIFT INTO NEW PROJECTS BY GREGORY A PATTERSON CHICAGO SEARS ROEBUCK & CO WHICH HAS PUT SOME ZIP INTO ITS STODGY STORES IS NOW TRYING TO PUT MORE ZING INTO ITS MESSAGE FOLLOWING RECENT AGREEMENTS TO SPONSOR A YACHT AND A ROCK STAR THE NATION'S THIRDLARGEST RETAILER ALSO PLANS TO FRESHEN ITS MARKETING WITH A SERIES OF INFOMERCIALS THIS YEAR WHAT'S MORE SEARS IS BOOSTING ITS 1 BILLION MARKETING BUDGET ABOUT 9 THIS YEAR AND REFOCUSING ON SELLING NATIONAL BRANDS LAST WEEK SEARS ANNOUNCED IT HAD HIRED THOMAS SHARBAUGH VICE PRESIDENT BRAND MANAGEMENT AT ANHEUSERBUSCH COS TO HELP GUIDE THE NEW STRATEGY CURRENTLY SEARS'S MERCHANDISE MIX IS 40 NATIONAL BRANDS AND 60 PRIVATE LABEL THE COMPANY YESTERDAY SAID IT WANTS TO INCREASE THE NATIONALBRAND PORTION OF ITS SALES TO 50 THE NEW MARKETING EMPHASIS ISN'T WITHOUT COSTS SEARS SAID ITS FOURTHQUARTER PROFIT WAS SLIMMER THAN EXPECTED IN PART BECAUSE OF HIGHER AD SPENDING ACCORDING TO INDUSTRY ESTIMATES IT SPENT 60 MILLION MORE IN THE FOURTH QUARTER ON ADVERTISING THAN IN THE YEAREARLIER PERIOD IN ADDITION TO INCREASING AD SPENDING THE RETAILER IS SHIFTING FUNDS INTO THE NEW MARKETING PROJECTS FROM MORE TRADITIONAL MEDIA SUCH AS NEWSPAPER INSERTS SEARS IS CLEARLY MORE AGGRESSIVE IN ITS MARKETING THESE DAYS SAYS GARY STIBEL PRINCIPAL OF NEW ENGLAND CONSULTING GROUP A WESTBURY CONN CONSULTING FIRM UNTIL RECENTLY THE RETAILER HAD EMPLOYED BROAD SOME SAY BLAND PITCHES AIMED AT AN AMORPHOUS MIDDLE AMERICA EXAMPLES SEARS YOU CAN COUNT ON ME AND SEARS WHERE AMERICA SHOPS BOTH SLOGANS HAVE BEEN SHELVED THE CONSUMER MARKET IS CHANGING AND THAT REQUIRES NEW STRATEGIES TO REACH CUSTOMERS SAYS JOHN H COSTELLO SEARS'S SENIOR EXECUTIVE VICE PRESIDENT FOR MARKETING SEARS IS LOOKING FOR WAYS TO LEAD THESE CHANGES KING WORLD PRODUCTIONS INC A TELEVISION SYNDICATOR BASED IN NEW YORK WILL PRODUCE THE INFOMERCIALS HANDLE THE ORDERS THEY ATTRACT AND MONITOR THE RESULTS FOR SEARS IF THE INITIAL ONE OR TWO ARE SUCCESSFUL SEARS PLANS TO AIR FIVE TO SEVEN MORE INFOMERCIALS THIS YEAR THE FIRST A 30MINUTE PIECE POKES FUN AT THE CHAIN IN A STORY LINE THAT FOLLOWS TWO ACTORS PLAYING SEARS MANAGERS CHARGED WITH FINDING A PRODUCT FOR THE COMPANY TO SELL THE MEN NEGOTIATE SEARS'S CORPORATE LABYRINTH AS THEY CONVINCE THEMSELVES THEIR BOSS AND THEIR BOSS'S BOSSES OF THE BENEFITS OF A 350 KENMORE WHISPERTONE II VACUUM CLEANER TYEE PRODUCTIONS THE PORTLAND ORE STUDIO THAT WROTE AND PRODUCED THE ADVERTISEMENT SAYS THE SPOT WILL BEGIN AIRING ON CABLE AND BROADCAST STATIONS IN THE NEXT FOUR TO SIX WEEKS SEARS KING WORLD AND TYEE PRODUCTIONS WON'T DISCLOSE WHICH OTHER PRODUCTS ARE SLATED TO BECOME THE SUBJECT OF INFOMERCIALS BUT SEARS INDICATED THAT ONE MIGHT FEATURE EXERCISE EQUIPMENT AND TYEE PRODUCTIONS SAYS IT HAS JUST COMPLETED A TWOMINUTE INFOMERCIAL PROMOTING A PAIR OF SEARS WIRE PLIERS CALLED ROBOGRIP JUDITH LANGER OF LANGER ASSOCIATES INC A NEW YORK MARKETRESEARCH FIRM IS SKEPTICAL THAT THE INITIAL INFOMERCIAL WILL WORK IN PART BECAUSE IT USES TWO MEN TO PITCH A PRODUCT THAT IS GOING TO BE BOUGHT BY WOMEN FURTHERMORE MS LANGER SAYS I CAN'T IMAGINE ANYONE SPENDING HALF AN HOUR WATCHING AN INFOMERCIAL ABOUT A VACUUM CLEANER BUT SHE SAYS INFOMERCIALS PROMOTING COMPLICATED PRODUCTS MIGHT WORK AS MIGHT THOSE THAT PROMOTE COSMETICS OR OTHER GOODS THAT RELY ON TESTIMONIALS IF SEARS STUMBLES WITH THE FORMAT IT WOULDN'T BE THE FIRST RETAILER DAYTON HUDSON CORP DROPPED INFOMERCIALS AFTER TWO TESTS AT SELLING BEDDING FAILED TO PRODUCE SIGNIFICANT RESULTS SEARS IS CAREFULLY CALLING ITS FIRST ONE A TEST ALTHOUGH MR COSTELLO THE MARKETING EXECUTIVE SAYS IT'S A VERY WELLTHOUGHTOUT TEST SEARS HAS RECOGNIZED THAT THE WAY MAJOR BRANDS COMMUNICATE IS CHANGING AND THAT YOU CAN'T CONTINUE TO DO THINGS THE SAME WAY SAYS CLIVE CHAJET CHAIRMAN OF LIPPINCOTT & MARGULIES A NEW YORKBASED CORPORATEIMAGE CONSULTING FIRM I DON'T KNOW WHETHER ANY OF THESE THINGS WILL WORK BUT THE IMPORTANT THING IS THAT THEY'RE TRYING SEARS'S FIRST MAJOR MOVE IN THIS DIRECTION HAS PRODUCED POSITIVE RESULTS ITS 40 MILLION PRINT AND BROADCAST SOFTER SIDE OF SEARS CAMPAIGN LAST FALL IMPROVED THE COMPANY'S IMAGE AMONG WOMEN SAYS MS LANGER OF LANGER ASSOCIATES SEARS ALSO SAYS APPAREL SALES ARE UP AS A RESULT OF THE CAMPAIGN THE FIRST DONE BY ITS NEW AGENCY FOR APPAREL YOUNG & RUBICAM THE RETAILER IS TRYING OTHER APPROACHES TOO EARLY LAST MONTH SEARS AGREED TO EXCLUSIVELY SPONSOR SOFT ROCKER PHIL COLLINS'S 30CITY NORTH AMERICAN CONCERT TOUR SET TO START IN MAY THE RETAILER WON'T SAY HOW MUCH THIS WILL COST ALSO LAST MONTH SEARS DISCLOSED A THREEYEAR 3 MILLION AGREEMENT TO PARTIALLY SPONSOR YACHTSMAN DENNIS CONNER'S STARS & STRIPES BOAT IN THE PRESTIGIOUS AMERICA'S CUP RACES SEARS ALSO NEGOTIATED DEALS WITH MR CONNER AND STRIDE RITE CORP THAT CALL FOR SEARS THIS SPRING TO BEGIN SELLING STRIDE RITEPRODUCED MEN'S CASUAL SHOES AND SPORTSWEAR UNDER THE STARS & STRIPES LABEL WHICH IS OWNED BY MR CONNER THE RETAILER'S ONLY OTHER FORAY INTO EVENT SPONSORSHIP HAS BEEN ITS LONG RELATIONSHIP WITH AUTO RACING BUT WE HAVE NEVER BEEN INVOLVED WITH EVENTS OF THIS SIZE MR COSTELLO SAYS OF SEARS'S LATEST DEALS WE'RE REALLY ACCELERATING OUR MARKETING EFFORTS 9402160077 940216 EYES ARE SMILING AT IRISH BOND MARKET BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE IRISH BOND MARKET IS SMALL IGNORED AND UNLOVED BUT IT'S VERY VERY PROFITABLE THOUGH IT RANKS 19TH IN SIZE ON SALOMON BROTHERS INC'S LIST OF THE WORLD'S 20 MAJOR GOVERNMENTBOND MARKETS IT PERFORMED THE BEST LAST YEAR BY DELIVERING A TOTAL RETURN OF 3125 MEASURED IN US DOLLARS ACCORDING TO LEHMAN BROTHERS INTERNATIONAL EUROPE THE IRISH BOND MARKET RETURNED 1375 OR 1789 IF INVESTORS HEDGED THEIR CURRENCY RISK THAT COMPARES WITH A 1068 RETURN FOR US TREASURYS IN EVERY WHICH WAY YOU WANT TO COUNT IT IRELAND OUTPERFORMED US TREASURYS SAYS CHRISTOPHER GOLDEN AN INTERNATIONAL BOND STRATEGIST AT LEHMAN BROTHERS IN LONDON ALTHOUGH EUROPEAN INTEREST RATES ARE FORECAST TO FALL FURTHER IN 1994 NO ONE EXPECTS A REPEAT OF 1993'S SPECTACULAR PERFORMANCE THEN AGAIN THAT'S TRUE OF ALMOST ALL BOND MARKETS SAYS JIM O'LEARY CHIEF ECONOMIST AT DAVY STOCKBROKERS IN DUBLIN ALMOST NONE OF THE WORLD'S MAJOR SECURITIES FIRMS CONDUCT RESEARCH ON THE IRISH MARKET BUT SOME BIG INVESTORS ARE IN IT ANYWAY KEMPER INVESTMENT MANAGEMENT CO HAS PLACED 10 OF ONE ITS MUTUAL FUNDS IN IRISH GOVERNMENT BONDS ALSO CALLED GILTS AND A MAJOR US PENSION FUND FOR WHOM KEMPER MANAGES SEVERAL HUNDRED MILLION DOLLARS IN GLOBALBOND MARKETS HAS 10 INVESTED IN IRISH PUNTS THE COUNTRY'S CURRENCY AS DOES ONE OF THE FIRM'S GLOBALBOND FUNDS WE THINK IRELAND IS A GOOD STORY SAYS TERENCE PRIDEAUX A KEMPER DIRECTOR IN LONDON ONE ALLURE IS YIELD AT ABOUT 6 SIXMONTH PUNT DEPOSITS OFFER NEARLY TWICE AS MUCH AS US TREASURY BILLS THE BENCHMARK FIVEYEAR IRISH GILT CURRENTLY YIELDS JUST OVER 590 OR ABOUT SIXTENTHS OF A PERCENTAGE POINT MORE THAN TREASURYS THE YIELD LOOKS EVEN BETTER WHEN ADJUSTED FOR INFLATION IRELAND'S INFLATION IS 15 ONE OF THE LOWEST RATES IN EUROPE IT COULD RISE THIS YEAR ALONG WITH ECONOMIC GROWTH BUT ANALYSTS AREN'T WORRIED THE IRISH ECONOMY ISN'T BOOMING UNEMPLOYMENT IN DECEMBER WAS 169 AND THERE'S A HUGE POOL OF LABOR WAITING FOR EMPLOYMENT SAYS MR GOLDEN OF LEHMAN WHERE'S INFLATION GOING TO COME FROM LAST YEAR IRELAND'S BORROWING REQUIREMENT MONEY NEEDED TO FINANCE ITS CURRENT BUDGET DEFICIT AND REFINANCE MATURING DEBT WAS 25 OF ITS TOTAL OUTPUT OF GOODS AND SERVICES THIS YEAR DUBLIN'S BUDGET CALLS FOR A HIGHER FIGURE OF 27 BUT MANY ECONOMISTS EXPECT THE GOVERNMENT TO BEAT THAT TARGET AS IT DID IN 1993 INVESTORS ALSO LIKE THE GOVERNMENT'S STABILITY AND THE RELATIVE STRENGTH AT LEAST WITHIN EUROPE OF THE PUNT SCOTT TURNER A PORTFOLIO MANAGER AT GLOBAL ADVISORS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA IN NEWARK NJ JUMPED INTO THE IRISH BOND MARKET IN EARLY FEBRUARY 1993 AT THE TIME IRISH BOND YIELDS WERE ABOVE 10 AND THE PUNT HAD JUST BEEN DEVALUED BY 10 WE TRIED TO BUY EVERYTHING WE COULD BUT WE COULDN'T GET EVERYTHING WE WANTED SAYS MR TURNER THEN WE BOUGHT IN LARGE SIZE AT GOVERNMENT AUCTIONS AT A COUPLE OF THEM HE ADDS WE BOUGHT NEARLY THE WHOLE AUCTION ONLY 225 BILLION OF BONDS DENOMINATED IN IRISH PUNTS ARE OUTSTANDING AT ONE POINT SOME GLOBAL ADVISORS CLIENTS WERE 15 INVESTED IN IRISH BONDS AND THE FIRM WAS THE SINGLELARGEST FOREIGN HOLDER OF IRISH DEBT THAT PERCENTAGE HAS SINCE BEEN ROLLED BACK TO ABOUT 7 AS MR TURNER TOOK PROFITS BUT HE SAYS WE STILL LIKE THE IRISH BOND MARKET BUT MANY MONEY MANAGERS DISLIKE THE SMALL IRISH BOND MARKET'S LACK OF LIQUIDITY I'VE LOOKED AT IT AND THOUGHT IT WAS CHEAP BUT IT IS VERY DIFFICULT TO TRADE IN ANY SIZE SAYS ROBERT EVANS A PORTFOLIO MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO IN NEWPORT BEACH CALIF PART OF THE PROBLEM IS THAT THERE AREN'T ANY MARKETMAKING FIRMS WILLING TO RISK CAPITAL TO MAINTAIN BUYANDSELL PRICES INSTEAD IRISH BROKERS ACT AS AGENTS FROM A DEALING POINT OF VIEW IRELAND IS ONE OF THE WORST BOND MARKETS IN THE WORLD SAYS MR TURNER OF GLOBAL ADVISORS NEW ZEALAND'S MARKET IS NEARLY HALF THE SIZE OF IRELAND'S HE NOTES BUT IN TRADING TERMS NEW ZEALAND IS LIKE A MERCEDES COMPARED TO A VOLKSWAGEN BEETLE IRELAND'S NATIONAL TREASURY MANAGEMENT AGENCY SET UP THREE YEARS AGO TO BRING PROFESSIONAL EXPERTISE TO THE MANAGEMENT OF THE COUNTRY'S NATIONAL DEBT IS TAKING STEPS TO REMEDY THE PROBLEM IT HAS INTRODUCED A FORMAL SYSTEM OF BENCHMARK BONDS SOLD AT KEY FIVE 10 15 AND 20 YEAR MATURITIES AND SUCCESSFULLY PUSHED TO HAVE THEM INCLUDED IN MAJOR INTERNATIONAL BOND INDEXES CREATING A MARKETMAKER SYSTEM WHICH WOULD ATTRACT BIG INTERNATIONAL SECURITIES FIRMS AND PROMPT THEM TO RESEARCH THE IRISH BOND MARKET IS ALSO UNDER CONSIDERATION NOT EVERYONE IN IRELAND IS EAGER TO SEE BIG FOREIGN COMPETITORS NONETHELESS JOHN CORRIGAN DIRECTOR OF DOMESTIC DEBT FOR THE AGENCY SAYS THERE'S A RECOGNITION THAT WE NEED TO MOVE FORWARD AND ADAPT THE MARKET TO MODERN INTERNATIONAL PRACTICES IF DUBLIN IS TO SURVIVE AS A REGIONAL FINANCIAL CENTER IN EUROPE 9402160076 940216 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/8 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/4 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 DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 340 30 TO 59 DAYS 342 60 TO 89 DAYS 345 90 TO 119 DAYS 348 120 TO 149 DAYS 350 150 TO 179 DAYS 355 180 TO 239 DAYS 365 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 349 30 DAYS 351 60 DAYS 355 90 DAYS CERTIFICATES OF DEPOSIT 273 ONE MONTH 279 TWO MONTHS 283 THREE MONTHS 301 SIX MONTHS 332 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 335 ONE MONTH 345 THREE MONTHS 365 SIX MONTHS BANKERS ACCEPTANCES 332 30 DAYS 339 60 DAYS 342 90 DAYS 347 120 DAYS 352 150 DAYS 357 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/16 3 5/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 9/16 3 7/16 THREE MONTHS 3 5/8 3 1/2 FOUR MONTHS 3 11/16 3 9/16 FIVE MONTHS 3 3/4 3 5/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 7/16 ONE MONTH 3 9/16 THREE MONTHS 3 3/4 SIX MONTHS 4 1/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 593 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 14 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 328 13 WEEKS 343 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 703 60 DAYS 709 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 701 60 DAYS 710 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9402160075 940216 GERIATRIC CASES THE AGING OF AMERICA IS MAKING ELDER CARE' A BIG WORKPLACE ISSUE EMPLOYEES WHO JUGGLE JOBS AND PARENTAL NEEDS HAND BOSSES A NEW CHALLENGE TAKING DAYS OFF FOR MOM BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL FAITH MEURRENS SEES THE WORK FORCE OF THE FUTURE WHEN SHE LOOKS AROUND HER OMAHA NEB OFFICE THE 12 SOFTWARE DESIGNERS SHE MANAGES AT U S WEST COMMUNICATIONS INC ARE EXPERIENCED HIGHLY SKILLED AND AT AN AVERAGE AGE OF 42 ABOUT FIVE YEARS OLDER THAN THE TYPICAL US WORKER ONLY TWO HAVE SMALL CHILDREN BUT MOST HAVE MISSED WORK LATELY TO CARE FOR AN AGED RELATIVE JERRIE CIPPERA TOOK TIME OFF TO MOVE HER FATHER FROM HIS NEBRASKA FARM TO A NEARBY TOWN LINDA SMITH RUSHED TO WYOMING AFTER HER FATHER HAD A STROKE CANDACE SORENSON'S MOTHER HAD A HIP REPLACEMENT DUANE SKAFF WOUND UP HELPING WITH THREE AGED RELATIVES TWO OTHERS PLUS MS MEURRENS AND HER BOSS TOOK TIME OFF WHEN PARENTS WERE HOSPITALIZED ELDER CARE IS THE BIGGEST PERSONAL ISSUE WE FACE IN MAINTAINING PRODUCTIVITY FROM DAY TO DAY MS MEURRENS SAYS THE TIP OF A VERY DISRUPTIVE ICEBERG HAS SURFACED IN THE WORKPLACE AND IS CHANGING PEOPLE'S LIVES AND JOB PERFORMANCE TO A DEGREE FEW HAD ANTICIPATED IN THE COMING YEARS ELDER CARE WILL HAVE A GREATER IMPACT ON THE WORKPLACE THAN CHILD CARE OR ANY OTHER WORKFAMILY ISSUE SO FAR SAYS SALLY COBERLY AN AGING SPECIALIST AT THE WASHINGTON BUSINESS GROUP ON HEALTH AS THE BABY BOOM MOVES DEEPER INTO MIDDLE AGE THE NEED FOR ELDERCARE SERVICES WILL SIMPLY EXPLODE ABOUT 22 OF THE WORK FORCE EXPECTS TO ASSUME ELDERCARE RESPONSIBILITY OVER THE NEXT THREE TO FOUR YEARS COMPARED WITH 15 TO 16 WHO HAVE THE RESPONSIBILITY NOW SAYS BOSTON CONSULTING FIRM WORK/FAMILY DIRECTIONS INC BY 2005 37 OF US WORKERS WILL BE AGED 40 TO 54 THE PRIME TIME FOR CARING FOR ELDERLY PARENTS BY 2020 MORE THAN ONE IN THREE EMPLOYEES WILL BE PROVIDING ELDER CARE SAYS ANDREW SCHARLACH A UNIVERSITY OF CALIFORNIA AT BERKELEY PROFESSOR ON AGING SOME COMPANIES' INTERNAL RESEARCH SUGGESTS THOSE NUMBERS ARE UNDERSTATED AT NEW YORK LIFE INSURANCE CO'S HEADQUARTERS IN MANHATTAN 52 OF 2858 EMPLOYEES SURVEYED SAID THEY EXPECTED TO HAVE ELDERCARE RESPONSIBILITIES WITHIN FIVE YEARS COMPARED WITH 50 FOR CHILD CARE LAST NOVEMBER AND DECEMBER EMPLOYEE CALLS FOR ELDER CARE FROM THE WORKFAMILY REFERRAL SERVICE AT U S WEST INC PARENT OF U S WEST COMMUNICATIONS EXCEEDED CHILDCARE CALLS FOR THE FIRST TIME THIS IS REALLY A DEMOGRAPHIC REVOLUTION ONE FOR WHICH WE AS A SOCIETY ARE TOTALLY UNPREPARED SAYS DR SCHARLACH THE NUMBER OF PEOPLE 85 OR OLDER WHO RELY ON THEIR CHILDREN WILL NEARLY DOUBLE BY 2030 AND MORE THAN TRIPLE BY 2050 THE CENSUS BUREAU SAYS WITH FAMILIES PROVIDING 80 OF NEEDED LONGTERM CARE THE REVOLUTION IS TOUCHING EVEN THE HIGHEST RANKING EXECUTIVES JUST BEFORE LAWRENCE PERLMAN WAS PROMOTED TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CERIDIAN CORP IN MINNEAPOLIS HE HAD TO TAKE TIME OFF FROM HIS JOB TO MAKE SEVERAL TRIPS TO PALM SPRINGS CALIF TO HELP HIS DYING FATHER THE EXPERIENCE CERTAINLY SENSITIZED ME TO THE ELDERCARE ISSUE HE SAYS HUGH MCCOLL CHAIRMAN AND CHIEF EXECUTIVE OF NATIONSBANK CORP LOST TIME FROM WORK RECENTLY DUE TO HIS FATHER'S LONG HOSPITAL STAY YET ELDER CARE REMAINS LARGELY UNDISCUSSED AT MOST COMPANIES A PAINFUL REMINDER OF MORTALITY THAT NO ONE WANTS TO FACE IT'S A HIDDEN ISSUE A BIG SHADOW OUT THERE SAYS MAX JOHNSON A HUMANRESOURCES EXECUTIVE AT PRINCIPAL FINANCIAL GROUP A DES MOINES IOWA INSURER FEW EMPLOYEES OR THEIR BOSSES ARE PREPARED FOR THE DISRUPTIVE FORCE OF ELDERCARE CONCERNS AGED RELATIVES' NEEDS TEND TO ERUPT IN PERIODIC CRISES AND STRETCH ON FOR SEVERAL YEARS THAT PROCESS OF DECLINE IS MORE STRESSFUL FOR MANY EMPLOYEES THAN CHILDREARING RAISING A THICKET OF SADNESS ANGER GUILT AND FEAR OF LOSS ELDERCARE CRISES OFTEN STRIKE IN TWOS AND THREES STRAINING EMPLOYEE AND EMPLOYER TO THE LIMIT THE ODYSSEY OF MR SKAFF A FINANCIALSYSTEM MANAGER IN MS MEURRENS'S GROUP WAS ONLY BEGINNING WHEN HE GOT THE CALL EVERYONE DREADS FROM HIS MOTHER'S PARISH PASTOR IN SIOUX CITY IOWA DUANE I HATE TO BE THE BEARER OF BAD NEWS BUT WHEN I STOPPED BY YOUR MOTHER'S HOUSE TODAY I FOUND A HEAVY SMELL OF GAS THE PASTOR SAID MR SKAFF'S MOTHER FIERCELY INDEPENDENT AT 88 HAD ABSENTMINDEDLY TURNED ON HER STOVE WITHOUT LIGHTING IT AND THE PASTOR JUST HAPPENED TO ARRIVE AT THE RIGHT TIME MR SKAFF SAYS SHE COULD HAVE KILLED HERSELF TRAUMATIZED BY WORRY OVER HIS MOTHER MR SKAFF MOVED HER TO HIS HOME IN OMAHA THEN TO A NURSING HOME BUT SOON ANOTHER CRISIS AROSE WHEN HE FOUND HIS WIFE'S MOTHER SPRAWLED GRAVELY ILL ON THE FLOOR OF HER OMAHA HOME WHERE SHE HAD BEEN CARING FOR HER WHEELCHAIRBOUND HUSBAND A STROKE VICTIM THE ENSUING MONTHS WERE A NIGHTMARE WITH MR SKAFF HELPING CARE FOR HIS MOTHER AND INLAWS BRIEFLY HIS MOTHERINLAW MOVED INTO HIS HOME WHERE HIS TEENAGE DAUGHTER WAS ALREADY RECUPERATING FROM A CAR ACCIDENT MR SKAFF WAS PULLED AWAY FROM WORK SO MUCH THAT HE STARTED GOING TO THE OFFICE LATE AT NIGHT WHEN HIS WIFE WAS HOME FROM HER JOB OTHER TIMES HE WORKED NIGHTS OR WEEKENDS STRETCHING THE LIMITS OF EMAIL FROM HIS HOME COMPUTER IF MY JOB HADN'T GIVEN ME FLEXIBILITY I DON'T KNOW WHAT I WOULD HAVE DONE HE SAYS SUCH CRISES THRUST CAREGIVERS USUALLY THE CHILDREN OR CLOSE RELATIVES OF THE SICK INTO A BUREAUCRATIC MAZE OF TRYING TO MAKE SUCCESSIVE CARE ARRANGEMENTS IN A BADLY FRAGMENTED LONGTERMCARE SYSTEM THE NATION'S PATCHWORK OF NURSING HOMES FOSTER HOMES ADULT DAY CENTERS AND HOME HEALTHCARE AGENCIES OFFER A DIZZYING ARRAY OF OFTENUNSATISFACTORY OPTIONS AND ABOUT HALF THE TIME WORKING CAREGIVERS LIVE 100 MILES OR MORE FROM THE RELATIVE FURTHER SNARLING THEIR EFFORTS DR SCHARLACH ESTIMATES PRODUCTIVITY LOSSES FROM ELDER CARE AT 2500 PER EMPLOYED CAREGIVER PER YEAR BASED ON TIME MISSED FROM WORK AND THE COST OF REPLACING CAREGIVERS WHO QUIT THEIR JOBS ALTOGETHER HE ESTIMATES THE LOST OUTPUT TO ELDER CARE IN THE US AT 17 BILLION NATIONSBANK WAS STUNNED TO LEARN IN FOCUSGROUP AND CASE STUDIES THAT IT WAS LOSING AN ESTIMATED 1 MILLION A YEAR TO ABSENCES FOR ELDER CARE THE COMPANY IS STARTING AN EMPLOYEEHELP LINE AND OTHER ELDERCARE PROGRAMS THIS MONTH WHILE CHILDCARE PROBLEMS TEND TO HIT YOUNGER EMPLOYEES WHO OFTEN HOLD MARGINAL JOBS EMPLOYEES WITH ELDERCARE PROBLEMS TEND TO BE OLDER MORE EXPERIENCED MORE ADVANCED IN THEIR CAREERS AND THEREFORE MORE VALUABLE TO US MR MCCOLL SAYS WOMEN'S INCREASINGLY CRUCIAL ROLE IN THE WORK FORCE INTENSIFIES THE IMPACT SAYS MICHAEL LOSEY PRESIDENT OF THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT ALEXANDRIA VA THIS ISN'T THE OLD DAYS WHEN THE CAREGIVER WAS A CLERKTYPIST AND SHE COULD WALK AWAY FROM THE WORK FORCE TAKE CARE OF AN ELDER FOR A FEW YEARS THEN WALK BACK IN AGAIN AS FAMILIES FRAGMENT AND SCATTER MORE EMPLOYEES ARE TENDING TO GRANDPARENTS STEPPARENTS AND AUNTS AND UNCLES AS WELL AS PARENTS WHEN A 25YEAROLD AMERICAN EXPRESS CO EMPLOYEE APPROACHED HIS BOSS IN FLORIDA RECENTLY ABOUT AN ELDERCARE PROBLEM THE MANAGER WAS INCREDULOUS HOW OLD CAN YOUR PARENTS BE THE MANAGER WONDERED IT TURNED OUT THE EMPLOYEE WAS CARING FOR HIS 85YEAROLD GRANDPARENT SAYS BARBARA KATERSKY AMERICAN EXPRESS'S VICE PRESIDENT EMPLOYEE RELATIONS WE HAVE A SIGNIFICANT PERCENTAGE OF EMPLOYEES IN THAT SITUATION SHE SAYS ELDERCARE CRISES ARE TAXING NOT ONLY FOR EMPLOYEES BUT FOR MANAGERS AND COWORKERS WHEN JUDI RENARD'S ALZHEIMER'SAFFLICTED MOTHER BEGAN WANDERING ONTO THE FREEWAY AND HAILING CARS MS RENARD WAS FREQUENTLY TORN FROM HER JOB PROCESSING CUSTOMER ORDERS FOR U S WEST COMMUNICATIONS IN PHOENIX BY CALLS FROM THE POLICE SAYING COME AND GET HER HER MOTHER WOULD ALSO ACCIDENTALLY SET HER HOUSE ON FIRE OR CALL MS RENARD TO REMOVE IMAGINED INTRUDERS THOUGH MS RENARD TRIED NOT TO MISS WORK SHE FELT SHE HAD NO CHOICE HER ABSENCES POSED A CHALLENGE FOR ALL OF US INVOLVED TO BE ABLE TO KEEP THE BUSINESS ROLLING SAYS HER THENBOSS SUSAN E OLSON SEEING MS RENARD WAS UNDER AMAZING PRESSURE MS OLSON CALLED A MEETING OF HER STAFF TO EXPLAIN MS RENARD'S SITUATION SHE INVITED A COMPANY HEALTH SPECIALIST TO TALK ABOUT ALZHEIMER'S IN RESPONSE SOME EMPLOYEES WORKED OVERTIME TO COVER FOR MS RENARD AND OTHERS JUST WORKED HARDER BUT AS JUDI'S MANAGER I FELT AT A LOSS OVER WHAT TO DO WHAT TO SAY HOW TO HELP HER MS OLSON SAYS WHEN HER EMPLOYEES HAD CHILDCARE PROBLEMS SHE FOUND IT EASIER TO DISCUSS A RANGE OF OPTIONS BUT ELDER CARE IS SORT OF A SCARY THING SHE SAYS SOMETIMES SHE WOULD SIT IN HER OFFICE AND TALK WITH MS RENARD ABOUT HER RAGE AND SADNESS AT HER MOTHER'S PLIGHT ELDER CARE IS AN ISSUE THAT WE ALL ARE FACED WITH SAYS MS OLSON FOR U S WEST MS OLSON'S STRATEGY RETAINED A SKILLED EMPLOYEE SEVERAL YEARS LATER AFTER MOVING HER MOTHER TO THREE DIFFERENT LONGTERMCARE FACILITIES MS RENARD STILL VISITS HER IN A NURSING HOME BUT WORKS MOSTLY UNINTERRUPTED SHE HAS EVEN BEEN PROMOTED WHEN ELDERCARE RESPONSIBILITIES HIT AN EMPLOYEE THEY OFTEN MUST GIVE UP WORK OR WORK AS THEY HAD COME TO KNOW IT A SEVENYEAR STUDY BY THE NEW ENGLAND RESEARCH INSTITUTE IN WATERTOWN MASS FOUND THAT WHEN MANAGERS DENY FLEXIBILITY OR ELDERCARE DEMANDS GROW TOO HEAVY 33 OF EMPLOYEES WITH SUCH RESPONSIBILITIES QUIT THEIR JOBS WHILE 83 CHANGE EMPLOYMENT ANOTHER 14 CUT THEIR WORK HOURS AND 15 CHANGE THEIR SCHEDULES CAROLYN JOHNSON A FORMER FIELD MANAGER FOR A MEDIARESEARCH CONCERN HAD A BIG PROBLEM FINDING SOMEONE TO CARE FOR HER MOTHER WHO HAS MULTIPLE SCLEROSIS IN MS JOHNSON'S BALTIMORE HOME NO ONE SHE HIRED WOULD COME UNTIL 8 AM AND THEY WERE OFTEN LATE MAKING IT HARD FOR HER TO GET TO HER JOB ON TIME AND FEW OF THE AIDES WERE RELIABLE MS JOHNSON FIRED ONE AFTER SHE LEARNED SHE WAS MOONLIGHTING AS A PROSTITUTE ANOTHER HAD A DRUG HABIT AND ABRUPTLY QUIT A THIRD WAS DISMISSED AFTER HER MOTHER COMPLAINED SHE HAD YANKED HER EARRINGS FROM HER EARS ANOTHER ASKED HER MOTHER DO YOU THINK I GET A KICK OUT OF PULLING YOU BACK AND FORTH IN YOUR WHEELCHAIR AT THE OFFICE A NEW BOSS WOULDN'T ACCOMMODATE MS JOHNSON WITH A LESS RIGID SCHEDULE INSTEAD HE INCREASED HER TRAVEL DEMANDS REQUIRING MORE OVERNIGHT TRIPS THE CHANGE WAS A SLAP IN THE FACE MS JOHNSON SAYS SHE RESIGNED AND STARTED HER OWN HOMEBASED BUSINESS MS JOHNSON 45 ALSO TALKS ABOUT AGING ISSUES TO GROUPS OF CAREGIVERS SOME MANAGERS FIND IT HARD TO UNDERSTAND ELDERCARE DECISIONS LIKE MS JOHNSON'S IN THE PAST NURSING HOMES WERE THE ACCEPTED SOLUTION BUT TODAY AMID RISING CONCERN ABOUT THE QUALITY OF LIFE IN OLD AGE MANY EMPLOYEES SEE THEM AS SOMETHING TO AVOID AS LONG AS POSSIBLE THAT CAN LEAVE A MANAGER WHO PUT HIS OWN PARENT IN A NURSING HOME FEELING CONFUSED AND EVEN ANGRY THAT THE EMPLOYEE CAN'T MAKE THE SAME DECISION HE DID SAYS HANK LINDEN DIRECTOR OF THE EMPLOYEEASSISTANCE PROGRAM AT AMERICAN EXPRESS ELDER CARE ALSO UNEARTHS FAMILY ISSUES THAT CAN BE HARD TO DECIPHER IN THE WORKPLACE SOME MANAGERS RESENT THEIR EMPLOYEE SUDDENLY BECOMING RESPONSIBLE FOR AN AGED PARENT AND WONDER WHY SIBLINGS AREN'T HELPING THE PROBLEM INTENSIFIES WHEN EMPLOYEES ARE TAPPED FOR PROMOTIONS OR TRANSFERS A TELECOMMUNICATIONS EXECUTIVE ON THE EAST COAST RECENTLY REJECTED A 1 MILLION OFFER TO BECOME CEO AT A WEST COAST FIRM BECAUSE HE DIDN'T WANT TO MOVE FAR FROM HIS WIDOWED MOTHER SAYS E PENDLETON JAMES A NEW YORK RECRUITER AN INFORMAL SURVEY OF U S WEST EMPLOYEES INVOLVED IN A REENGINEERING OF THE COMPANY'S SERVICEDELIVERY OPERATIONS FOUND THAT ABOUT 18 WERE WEIGHING THE IMPACT OF ANY TRANSFER ON THEIR ELDERLY PARENTS EVEN MORE THAN THE NUMBER WHO MENTIONED CHILDREN AS A FACTOR INDEED ELDERS SEEM CERTAIN TO BECOME AN INCREASINGLY VISIBLE PRESENCE IN THE WORKPLACE MUCH LIKE NEW BABIES WERE IN THE 1980S WHEN BERNIE SANTORE'S WORKDAY AS AN ASSISTANT CUSTOMERSERVICE MANAGER FOR FIRST NATIONAL BANK OF MARYLAND STRETCHES BEYOND THE HOURS OF HER MOTHER'S ADULT DAYCARE CENTER SHE SOMETIMES BRINGS HER MOTHER TO THE OFFICE THE 85YEAROLD WOMAN SITS IN A BACK ROOM SIPPING TEA AND READING WHILE MS SANTORE OR A COWORKER CHECKS ON HER PERIODICALLY SO FAR THE BANK HAS BEEN ACCOMMODATING WE'D BE A LITTLE FOOLHARDY NOT TO RECOGNIZE THAT CAREGIVERS NEED SUPPORT SAYS DIANE MURPHY A BENEFITS MANAGER FOR THE BANK 9402160074 940216 CREDIT MARKETS COLOMBIA'S YANKEE BONDS FIND BUYERS WAITING FOR THE CHANCE TO OWN DEVELOPINGNATION DEBT BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR MANY INSTITUTIONAL INVESTORS YESTERDAY'S 250 MILLION OFFERING OF 10YEAR YANKEE BONDS FROM THE REPUBLIC OF COLOMBIA WAS A FIRST FORAY INTO THE WORLD OF DEVELOPINGNATION DEBT MANY OF THESE INVESTORS HAVE BEEN EAGER FOR THE HIGH YIELDS AVAILABLE FROM LATIN AMERICAN BONDS BUT HAVE BEEN UNABLE TO BUY THEM BECAUSE OF THE EXTRA RISKS BUT THANKS TO FAIRLY HIGH CREDIT RATINGS AND A FAVORABLE RISK RATING FROM THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THE COLOMBIA BONDS SOLD YESTERDAY WERE WITHIN REACH YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE US THE COLOMBIA YANKEE BONDS WERE SOLD AT A PRICE OF 99196 WITH A COUPON OF 725 TO YIELD 7365 ABOUT 148 PERCENTAGE POINTS MORE THAN THE 10YEAR US TREASURY NOTE MEANWHILE THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND FELL 1/32 TO 97 8/32 TO YIELD 645 UNCHANGED FROM MONDAY THE BONDS HAVE INVESTMENTGRADE RATINGS FROM ALL THE MAJOR CREDITRATING AGENCIES THEY ARE RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP INSURANCE COMPANIES IN PARTICULAR WOULDN'T HAVE COME CLOSE TO THE COLOMBIAN DEBT WERE IT NOT FOR THE NAIC 2 RISK RATING GRANTED IT BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THAT RISK RATING MEANS THAT INSURANCE COMPANIES MUST SET ASIDE JUST 2 OF THE PURCHASE VALUE OF THE BONDS IN CAPITAL RESERVES AGAINST POSSIBLE FUTURE LOSSES THE HIGHER THE NAIC RATING THE MORE AN INSURANCE COMPANY MUST SET ASIDE AGAINST THE SECURITY AS PROTECTION AGAINST POTENTIAL LOSSES MOST LATIN AMERICAN DEBT COMES WITH HIGHER NAIC RATINGS SUCH AS NAIC 3 WHICH REQUIRES THAT 5 OF THE PURCHASE VALUE MUST BE SET ASIDE IN CAPITAL RESERVES THE DEAL WAS SOLD TO A LOT OF DIFFERENT ACCOUNTS SAID MARIO COVO A MANAGING DIRECTOR AT MERRILL LYNCH & CO AND THE HEAD OF THE FIRM'S EMERGINGMARKETS CAPITAL MARKETS GROUP FOR MANY OF THESE BUYERS THE COLOMBIAN OFFERING WAS THEIR FIRST TIME EVER IN EMERGINGMARKETS DEBT HE SAID MERRILL LYNCH WAS THE LEAD MANAGER ON THE DEAL ACCORDING TO MR COVO AS MUCH AS 90 OF THE PORTION OF THE DEAL SOLD BY MERRILL LYNCH WENT TO NONTRADITIONAL INVESTORS IN DEVELOPINGNATION DEBT WITH AS MUCH AS 25 GOING TO INSURANCE COMPANIES AND AS MUCH AS 60 GOING TO FUNDS THAT DON'T SPECIALIZE IN DEVELOPINGNATION DEBT COLOMBIA INTENDS THE DEAL TO SERVE AS A US MARKET BENCHMARK FOR FUTURE DEBT ISSUES FROM COLOMBIAN ENTITIES SAID AN OFFICIAL AT MERRILL LYNCH ACCORDING TO MARKET PARTICIPANTS SEVERAL COLOMBIAN COMPANIES PLAN OFFERINGS COLOMBIA'S NONCALLABLE BONDS ORIGINALLY WERE MARKETED AT 15 PERCENTAGE POINTS OVER TREASURYS CONSIDERED AGGRESSIVE BY SOME PORTFOLIO MANAGERS WHO SPECIALIZE IN EMERGINGMARKETS SECURITIES HOWEVER INVESTMENTGRADE INVESTORS CLAMORED TO BUY THE DEAL WHICH WAS 35 TIMES OVERSUBSCRIBED ACCORDING TO MR COVO THIS TRANSACTION WAS TARGETED AT INVESTMENTGRADE BUYERS AND THAT'S WHO THE BUYERS WERE SAID A MERRILL LYNCH OFFICIAL PROCEEDS WILL BE USED TO PAY OFF OUTSTANDING DEBT DESPITE STRONG INVESTOR INTEREST COLOMBIA DIDN'T INCREASE THE DEAL'S SIZE BECAUSE IT DIDN'T NEED ADDITIONAL FUNDS A MERRILL OFFICIAL SAID ACTIVE TRADING AFTER THE OFFERING WAS COMPLETED INDICATED THAT COLOMBIA'S BONDS WEREN'T PRICED TOO TIGHTLY THE BONDS ROSE BY 0304 POINT OR 304 FOR A BOND WITH A 1000 FACE VALUE TO 9950 THE YIELD DROPPED TO 732 FROM 7365 MEANWHILE IN THE US TREASURY MARKET TRADERS FOUND NO REASON TO BREAK BONDS OUT OF THE TIGHT PRICE RANGES THAT HAVE BEEN IN PLACE FOR OVER A WEEK AT THE END OF AN UNINSPIRED SESSION PRICES OF TREASURY SECURITIES WERE NARROWLY MIXED WITH THE 30YEAR BOND DOWN JUST 1/32 AND OTHER SECURITIES SLIGHTLY HIGHER OR UNCHANGED THE 10YEAR NOTE FOR EXAMPLE ROSE 1/8 POINT TO 99 29/32 TO YIELD 587 DOWN FROM 589 ON MONDAY THE MARKET SHRUGGED OFF SEVERAL ECONOMIC REPORTS THE DATA INCLUDED A 05 RISE IN JANUARY INDUSTRIAL PRODUCTION WHICH ANALYSTS SAID WAS TOO WEATHERDISTORTED TO ACCURATELY INTERPRET AS WELL AS FIGURES SHOWING A DROP IN CHAIN AND DEPARTMENTSTORE SALES IN EARLY FEBRUARY DEALERS ALSO BARELY RESPONDED TO A FEDERAL RESERVE REPORT SHOWING A SIGNIFICANT EASING OF TERMS AND STANDARDS ON BANK LOANS THE GROWING THREAT OF A TRADE WAR BETWEEN THE US AND JAPAN CONTINUED TO COMMAND ATTENTION BUT IT HAD LITTLE IMPACT ON YESTERDAY'S TRADING FEARS OF A TRADE WAR HAD SENT THE DOLLAR TUMBLING AGAINST THE YEN MONDAY RAISING FEARS THAT JAPANESE INVESTORS WOULD UNLOAD TREASURY SECURITIES BUT SO FAR THAT HAS NOT PROVEN TO BE THE CASE ALSO YESTERDAY MERRILL LYNCH ANNOUNCED AN EXCHANGE OFFER FOR ABOUT 11 BILLION IN TREASURY INVESTMENT GROWTH RECEIPTS OR TIGRS MERRILL IS OFFERING TO EXCHANGE ANOTHER STRIPPED SECURITY OF EQUIVALENT FACE AMOUNT AND THE SAME MATURITY FOR TIGR SERIES STRIPS ARE CREATED BY SEPARATING THE INTEREST AND PRINCIPAL PORTIONS OF SECURITIES INTO TWO DISTINCT ISSUES TIGRS ARE STRIP SECURITIES CREATED BY MERRILL BEFORE THE TREASURY DEPARTMENT BEGAN ITS OWN STRIPPING PROGRAM MERRILL'S IS SIMILAR TO ONE BY SALOMON BROTHERS INC DONE BACK IN NOVEMBER THROUGH ITS TENDER MERRILL LYNCH HOPES TO BE ABLE TO GLUE BACK TOGETHER THE SECURITIES FROM WHICH THE TIGRS WERE CREATED MERRILL LIKE SALOMON IS LOOKING TO TAKE ADVANTAGE OF AN ARBITRAGE OPPORTUNITY WHERE THE WHOLE SECURITY IS OF GREATER VALUE THAN ITS PARTS SOURCES AT THE FIRM SAID THERE WERE FIVE UNDERLYING ISSUES INVOLVED THE 1325 TREASURY DUE IN MAY 2014 THE 125 TREASURY DUE IN AUGUST 2014 THE 1175 OF AUGUST 2004 THE 11625 OF NOVEMBER 2004 AND THE 12 OF MAY 2005 THE SALOMON BROTHERS TENDER WAS PLAGUED BY RUMORS THAT THE FIRM HAD PROBLEMS COAXING THE SECURITIES FROM INVESTORS' HANDS THE PROBLEM TRADERS SAID WAS THAT MANY OF THE SECURITIES THAT SALOMON WAS TRYING TO OBTAIN WERE LOCKED UP IN ESCROW ACCOUNTS OR IN RETIREMENT FUNDS SALOMON OFFICIALS REFUSE TO SAY HOW THE TENDER OFFER WENT THE FOCUS OF THE MUNICIPAL MARKET WAS THE COMPETITIVE SALE OF CALIFORNIA'S 32 BILLION OF 1994 REVENUEANTICIPATION WARRANTS WHICH WERE WON BY SEVEN LEAD BIDDERS IN SECONDARY TRADING PRICES WERE NARROWLY MIXED AT THE CLOSE THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 500 BONDS OF 2024 FINISHED 1/8 POINT WEAKER AT 93 7/8 TO YIELD 539 THE REEDY CREEK IMPROVEMENT DISTRICT OF FLORIDA'S 500 BONDS OF 2019 FINISHED 1/8 HIGHER AT 94 3/8 ALSO YIELDING 539 MOST OF THE SERIES A RAWS WHICH HAVE A 375 COUPON ARE PRICED TO YIELD 295 THE MAJORITY OF THE SERIES B WARRANTS WHICH HAVE A 350 COUPON ARE PRICED TO YIELD 275 MOODY'S INVESTORS SERVICE INC HAS RATED THE WARRANTS MIG1 STANDARD & POOR'S CORP HAS RATED THE SECURITIES SP1 AND FITCH INVESTORS SERVICE INC HAS ASSIGNED AN F1PLUS RATING PRICES OF MOST MORTGAGE SECURITIES ENDED SLIGHTLY HIGHER BUT HIGHERCOUPON ISSUES SHOWED SIGNS OF INCIPIENT PROBLEMS AMONG 65 CURRENT COUPONS FOR MARCH DELIVERY PRICES FINISHED 3/32 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED AT 98 31/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED AT 99 3/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES CLOSED AT 98 30/32 RESEARCH DEPARTMENTS AND STRATEGY GROUPS ON WALL STREET ARE STARTING TO SUGGEST TO INSTITUTIONAL CLIENTS THAT SOME HIGHER COUPONS MAY BE GETTING TOO RICH WHEN VIEWED AGAINST COMPARABLE TREASURYS ALSO EVEN AS THE TREASURY RALLY SEEMS SURE NEVER TO RETURN TO ITS HEIGHTS THERE IS A FEAR THAT RATES COULD DROP ENOUGH AGAIN TO CAUSE THE EARLY CALL OF THE HIGHERCOUPON SECURITIES AS HOMEOWNERS REFINANCE THE LOANS BACKING THEM STILL THE OVERALL MARKET IS IN POSSESSION OF A RELATIVELY CLEAN BILL OF HEALTH TRADERS SAY SINCE MONEY MANAGERS OF ALL KINDS HAVE SAID SINCE EARLY IN THE YEAR THAT THEY WOULD LIKE TO MOVE INTO MORTGAGES OR INCREASE OUTSTANDING POSITIONS THERE JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9402160073 940216 TEXAS JOURNAL LETTERS TO THE EDITOR IS ATHENS FISHING IN THE RIGHT STREAM REGARDING YOUR STORY ON ATHENS'S USE OF 3 MILLION IN SALESTAX FUNDS TO WOO A FISH HATCHERY TAX AIMED AT CREATING JOBS MISSES MARK FEB 2 ADDITIONAL INFORMATION ON THE PROJECT MIGHT CHANGE THE WAY READERS VIEW THE PROJECT FIRST FROM THE OUTSET OF THIS PROJECT THERE WAS STRONG COMMUNITY SUPPORT FOR THE IDEA OF THIS FACILITY NOT ONLY WERE WE INTERESTED BUT 33 OTHER EAST TEXAS CITIES PICKED UP BID PACKETS WITH 11 COMPETITIVE BIDS EVENTUALLY SUBMITTED THERE WAS INTENSE INTEREST IN THIS PROJECT AND THE ATHENS ECONOMIC DEVELOPMENT CORP ATHENS MUNICIPAL WATER AUTHORITY ATHENS CHAMBER OF COMMERCE AND PRIVATE DONORS JOINED IN THE SUCCESSFUL BID SECOND THE ATHENS ECONOMIC DEVELOPMENT CORP OBTAINED A TEXAS ATTORNEY GENERAL'S OPINION THAT LOCAL SALESTAX REVENUE WAS A PROPER USE OF FUNDS FOR THIS PROJECT FURTHER THE COMMITMENT OF FUNDS DID NOT IMPAIR THE OPPORTUNITY FOR ECONOMIC DEVELOPMENT IN OTHER AREAS OF ATHENS THIRD WHILE THE STATE FISH HATCHERY WITH ITS 19 JOBS AND 1 MILLION ANNUAL LOCAL EXPENDITURES IS IMPORTANT THE HEART OF THE DEAL WAS THE TEXAS FRESHWATER FISHERIES VISITOR CENTER AND THE VISITOR AND TOURIST IMPACT FOR THE LOCAL ECONOMY ESTIMATES RANGE FROM 300000 TO 500000 VISITORS ANNUALLY WITH POINTOFSALE REVENUE RANGING FROM 8000000 TO 36000000 THAT INCOME WILL MULTIPLY THROUGH THE ATHENS ECONOMY AN AVERAGE OF 35 TIMES WHICH YIELDS A SUM BETWEEN 28 MILLION AND 126 MILLION SUBJECT TO SALES TAX ANNUALLY THE CITY OF ATHENS COULD EXPECT NEW REVENUE BETWEEN 420000 AND 1890000 ANNUALLY AND THE ATHENS ECONOMIC DEVELOPMENT CORP COULD EXPECT TO RECOVER 150000 TO 472500 ANNUALLY FOURTH ATHENS IS COMMITTED TO INCREASING THE ECONOMIC WEALTH OF THE ENTIRE COMMUNITY WE BELIEVE A STRATEGY OF COMBINING THE DEVELOPMENT OF INDUSTRIAL PROSPECTS WITH TOURISM REPRESENTS THE MOSTEFFECTIVE RETURN FOR OUR COMMUNITY FOR INSTANCE TEXAS DEPARTMENT OF COMMERCE HAS DOCUMENTED ONE JOB IS CREATED FOR EVERY 63000 OF TOURISM REVENUE AS A RESULT WE COULD SEE 125 TO 600 NEW JOBS IN TOURISM AND A SIGNIFICANT OPPORTUNITY FOR INVESTMENT THROUGHOUT OUR ECONOMY IN ADDITION THOSE VISITORS WILL ALSO TRAVEL TO OTHER AREAS OF EAST TEXAS LEVERAGING THE EFFECT FOR THE ENTIRE REGION HOW ABOUT THAT THE WALL STREET JOURNAL QUESTIONS OUR SPENDING PRACTICES IN ATHENS I'M WAY AHEAD I'VE HAD MY QUESTIONS FOR YEARS I NEVER CARED FOR FISHING I BARELY EVEN EAT FISH LITTLE DID I KNOW THAT THE EVERELUSIVE BASS WOULD BE MY AND MY TOWN'S SAVIOR I CAN'T RESIST THE URGE TO BE SARCASTIC BUT I AM VERY SERIOUS ABOUT THIS QUESTION WHAT DOES ALL THIS TOURISM DO FOR THE COMMON MAN WHO DOESN'T OWN A RETAIL BUSINESS OR HAVE THE MONEY TO START ONE I'M ALL FOR TOURISM BUT LET'S TAKE CARE OF OUR OWN FIRST AFTER ALL THE JOBS THAT WERE LOST OVER THESE PAST FEW YEARS THIS IS LIKE A SLAP IN THE FACE TO MOST OF THE PEOPLE WHO ARE OUT OF WORK WE NEED THE LOST JOBS BACK IT'S PLAIN AND SIMPLE HAS OUR CITY LOST FAITH IN THE COMMON FOLKS' ABILITY TO WORK SPEND MONEY AND BOOST OUR ECONOMY IF THE MENTALITY OF TOURISM IS OUR ONLY HOPE CONTINUES ALL THAT WILL BE LEFT IN ATHENS ARE CITY OFFICIALS RETAIL MERCHANTS WHOSE ONLY CUSTOMERS ARE CITY OFFICIALS ONE BASS SHRINE AND TUMBLEWEEDS BECAUSE WE COMMON FOLK CAN'T LIVE WITHOUT REALMONEYPAYING JOBS THREE MILLION DOLLARS IS A LOT OF MONEY TO THIS SMALL TOWN GET INVOLVED IN OUR CITY FOLKS USE YOUR RIGHT TO VOTE AS YOUR FREEDOM OF SPEECH THERE ARE A LOT OF THINGS SLIPPING BY US IN OUR APATHY ON YET ANOTHER SARCASTIC NOTE I AM LOOKING INTO THE FISHFOOD BUSINESS I GET THE FEELING THAT THE ONLY THING THAT WILL MULTIPLY AS A RESULT OF OUR 3 MILLION IS BASS PLEASE PROVE ME WRONG 9402160072 940216 BUSINESS BRIEF UTILICORP UNITED INC UTILITY SIGNS PACT TO BUY MISSOURI GAS PIPELINE SYSTEM UTILICORP UNITED INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY A MISSOURI INTRASTATE NATURAL GAS PIPELINE SYSTEM FROM EDISTO RESOURCES CORP OF DALLAS FOR 75 MILLION THE UTILITY COMPANY SAID THE ACQUISITION OF THE 218MILE PIPELINE SYSTEM INCLUDES THE GAS DISTRIBUTION SYSTEM AT FORT LEONARD WOOD MO ALONG WITH A PIPELINE THAT CROSSES THE MISSISSIPPI RIVER NORTH OF ST LOUIS THE GENERAL ROUTE OF THE MAJOR PORTION OF THE PIPELINE IS FROM CURRYVILLE MO SOUTH TO SULLIVAN MO AND THEN WEST TO FORT LEONARD WOOD UTILICORP BASED IN KANSAS CITY MO SAID THE ADDITION OF THE PIPELINES WILL HELP GENERATE GROWTH OPPORTUNITIES FOR ITS MISSOURI PUBLIC SERVICE DIVISION AND INCREASE ITS PRESENCE IN EASTERN MISSOURI THE COMPANY SAID THE TRANSACTION IS SUBJECT TO REGULATORY APPROVAL 9402160070 940216 WHAT'S NEWS BUSINESS AND FINANCE VIACOM WON THE PARAMOUNT BATTLE RECEIVING NEARLY 75 OF PARAMOUNT SHARES TENDERED AS RIVAL BIDDER QVC BOWED OUT OF THE CONTEST BUT MANY TRADERS AND ANALYSTS BELIEVE VIACOM IS PAYING A HIGH PREMIUM FOR PARAMOUNT AND THAT WITHOUT A NEW DEPTH OF MANAGEMENT A STRONG STOCK MARKET AND SOME LUCK THE FIVEMONTH STRUGGLE MAY PROVE AN EMPTY VICTORY THE US OPENED ITS TRADE OFFENSIVE AGAINST JAPAN THREATENING TO LEVY SANCTIONS ON SEVERAL HUNDRED MILLIONS OF DOLLARS OF JAPANESE IMPORTS BECAUSE OF A DISPUTE OVER CELLULAR TELEPHONES COMMERCE SECRETARY BROWN SAID THERE IS NO DELIBERATE EFFORT BY THE US TO STRENGTHEN THE YEN BUT HINTED AT ADVANTAGES IN THE YEN'S RISE TOWARD PRESSURING JAPAN TO LIFT IMPORTS THE DOLLAR RECOVERED A BIT YESTERDAY MCDONNELL DOUGLAS AND BOEING ARE EXPECTED TO SPLIT A 6 BILLION JET ORDER FROM SAUDI ARABIAN CARRIER SAUDIA TO BE ANNOUNCED AS EARLY AS TODAY INDUSTRIAL OUTPUT ROSE 05 IN JANUARY A MUCH SLOWER PACE THAN AT THE END OF 1993 THE US BLAMED WINTRY WEATHER AND THE LOS ANGELES QUAKE PRUDENTIAL SECURITIES AGREED TO AVOID USING LONGRANGE PROJECTIONS IN SETTING THE VALUE OF ABOUT 200 REALESTATE PARTNERSHIPS ENABLING INVESTORS TO GET SLIGHTLY MORE IN RESTITUTION WHEN TAPPING INTO A 330 MILLION REPARATIONS FUND SET UP BY PRUDENTIAL MACLEAN HUNTER'S BOARD REJECTED ROGERS'S 207 BILLION ACQUISITION BID AND SAID IT IS REVIEWING ALTERNATIVES INCLUDING A RECAPITALIZATION THE SALE OF ITS CANADIAN CABLETV ASSETS AND PARTNERSHIPS WITH THIRD PARTIES CITICORP IS OUT FROM UNDER THE STRICT REGULATORY SUPERVISION IMPOSED IN 1992 SIGNALING ITS RECOVERY FROM THE REALESTATE SLUMP OF THE EARLY 1990S GM PLANS TO BOOST TRUCK OUTPUT AND ACCORDING TO UNION OFFICIALS DROPPED PLANS TO CUT 1200 JOBS AT A KEY PARTSMAKING SITE THUS AVERTING A STRIKE THE DOW JONES INDUSTRIALS ROSE 2421 TO 392827 AS INVESTORS PUT ASIDE WORRIES ABOUT USJAPAN TRADE NINTENDO ELEVATED THE SENIOR VICE PRESIDENT OF ITS STRUGGLING NINTENDO OF AMERICA UNIT TO A POWERSHARING ARRANGEMENT WITH THE UNIT'S PRESIDENT UNITED HEALTHCARE AGREED TO ACQUIRE RAMSAYHMO FOR STOCK CURRENTLY VALUED AT ABOUT 501 MILLION SEARS ROEBUCK PLANS TO SPEED UP A STORE REMODELING PROGRAM AND FORECAST THAT SALES AT STORES OPEN AT LEAST A YEAR WILL INCREASE 4 TO 5 THIS YEAR THE JUSTICE DEPARTMENT FILED A CIVIL FRAUD SUIT AGAINST ITT FOR SUBMITTING FALSE DEFENSECONTRACT CLAIMS BONDS LEHMAN BROTHERS TREASURY INDEX 553068 OFF 388 COMMODITIES OIL 1406 A BARREL OFF 7 CENTS DOW JONES FUTURES INDEX 14563 UP 060 SPOT INDEX 13050 OFF 006 DOLLAR 10370 YEN UP 105 17305 MARKS UP 00032 9402160069 940216 CORRECTIONS & AMPLIFICATIONS SURETY CAPITAL CORP'S RETURN ON ASSETS WAS 076 IN 1993 BECAUSE OF INCORRECT INFORMATION PROVIDED BY THE COMPANY SURETY'S RETURN ON ASSETS WAS MISSTATED AS 12 IN A TEXAS JOURNAL ARTICLE LAST WEDNESDAY HARCOURT GENERAL INC'S INSURANCE BUSINESSES HAVE 32 BILLION IN ASSETS NOT 330 MILLION AS STATED IN AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION GITANO GROUP INC WHICH IS UP FOR SALE REITERATED LAST WEEK THAT IT IS UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE 130 MILLION GITANO OWES TO ITS SECURED LENDERS THE QUOTE WAS MISSTATED IN AN ARTICLE FRIDAY 9402160068 940216 LETTERS TO THE EDITOR JFK HAD HATS BUT NOT TO WEAR I GOT A KICK OUT OF JERRY BISHOP'S JAN 24 LEISURE & ARTS ARTICLE ABOUT MEN WITH HATS VS JOHN F KENNEDY YOU MIGHT BE INTERESTED IN HOW IT CAME ABOUT THAT OUR 35TH PRESIDENT WORE A HAT CONNECTICUT HAD AN EXTENSIVE AND SUCCESSFUL HAT INDUSTRY ESPECIALLY IN THE TOWNS OF NORWALK AND DANBURY THEN IT BECAME OUT OF STYLE TO WEAR HATS AND MANY PEOPLE WERE OUT OF JOBS IN CONNECTICUT THE FUTURE PRESIDENT CAME TO CONNECTICUT TO CAMPAIGN IN NORWALK I WAS TO INTRODUCE HIM AND SPEND THAT DAY RIDING IN OPEN CARS WITH HIM I SAID TO MY FRIEND JACK YOU'RE COMING INTO CONNECTICUT TO CAMPAIGN AND AS USUAL YOU WILL NOT HAVE A HAT ON YOUR HEAD THIS IS A GOOD OPPORTUNITY TO MAKE POINTS WITH THE PEOPLE OF NORWALK AND DANBURY HE SAID ABE YOU ARE RIGHT I IMMEDIATELY TALKED TO MY FRIENDS WHO MANUFACTURED THE CAVANAUGH HATS IN NORWALK WE TOOK HIS SIZE AND THERE WAS MADE FOR HIM A COMPLETE SET OF HATS OF EVERY TYPE AND STYLE FROM A SNAP BRIM TO A STOVE PIPE AND THEY WERE TURNED OVER TO ME FOR PRESENTATION HE TOOK THE HATS BUT GENERALLY JUST CARRIED THEM HE FOUND IT VERY DIFFICULT TO BREAK AN OLD HABIT AND GENERALLY RODE IN HIS OPEN AUTOMOBILE WITH A HAT IN HIS HAND WHICH HE USED TO WAVE TO THE CROWDS OF COURSE HE TOOK CONNECTICUT BY A GOOD MARGIN AFTER INAUGURATION DAY JFK NEVER WORE A HAT AGAIN MR BISHOP IS RIGHT WITH WEATHER AS COLD AS IT HAS BEEN IN THE PAST FEW WEEKS IT WOULD STILL BE A GOOD IDEA FOR MEN TO WEAR HATS UNFORTUNATELY IT IS A LITTLE TOO LATE TO SAVE THE HAT INDUSTRY OF DANBURY AND NORWALK MR RIBICOFF WAS GOVERNOR OF CONNECTICUT A US SENATOR AND SERVED AS SECRETARY OF HEALTH EDUCATION AND WELFARE IN THE KENNEDY ADMINISTRATION JFK REGULARLY CARRIED A HAT WHEN HE TRAVELED IN REPAYMENT OF A POLITICAL DEBT THE CAPMAKERS UNION IN NEW YORK WAS A STRONG SUPPORTER IN THE 1960 ELECTION ACCORDING TO MY GRANDFATHER HARRY POMERANTZ AN EARLY UNION MEMBER AND A WORKING CAPMAKER WELL INTO HIS 80S THE UNION PREVAILED UPON KENNEDY TO BE SEEN AT LEAST CARRYING A HAT IN ORDER TO STAVE OFF A DECLINE IN DEMAND CREATED BY A HATLESS PRESIDENT I WAS SURPRISED TO READ IN MR BISHOP'S PIECE THAT NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS A WIRE RACK FOR HOLDING A HAT PERHAPS MR BISHOP WOULD LIKE TO VISIT THE NEWSREEL THEATER IN CINCINNATI'S MUSEUM CENTER WHERE SUCH RACKS EXIST AND ARE THOUGHTFULLY EXPLAINED FOR THE VISITOR MR BISHOP SHOULD VISIT THE OLD PLAYMAKERS THEATRE HERE ON THE UNIVERSITY OF NORTH CAROLINA CAMPUS WHERE HE WOULD FIND THAT THE SEATS STILL CONTAIN THOSE UNDERTHESEAT RACKS THAT ENABLE A MAN TO AVOID HOLDING AND/OR CRUSHING HIS HEADGEAR ON HIS LAP 9402160067 940216 BUSINESS BRIEF MCGRAWHILL INC COMPANY WILL CONSOLIDATE OPERATIONS TO REDUCE COSTS MCGRAWHILL INC SAID IT WILL REDUCE COSTS BY CONSOLIDATING ITS DOMESTIC BOOK DISTRIBUTION OPERATIONS THE NEW YORKBASED PUBLISHING AND INFORMATION COMPANY SAID THE MOVE WHICH WILL ELIMINATE A TOTAL OF 175 POSITIONS WILL SAVE THE COMPANY AN ANNUAL 10 MILLION MCGRAWHILL SAID THE RECENT ACQUISITION OF THE REMAINING 50 INTEREST IN MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO CREATED AN OPPORTUNITY TO CONSOLIDATE OPERATIONS AND CUT COSTS DISTRIBUTION OPERATIONS IN HIGHTSTOWN NJ AND BLUE RIDGE SUMMIT PA WILL BE CENTRALIZED IN COLUMBUS OHIO WHILE FINANCIAL AND ACCOUNTING OPERATIONS IN COLUMBUS AND CREDIT OPERATIONS IN BLUE RIDGE SUMMIT WILL BE CENTRALIZED IN HIGHTSTOWN 9402160066 940216 RULE OF LAW JUDGING PACKWOOD SENATE SACRIFICES FAIRNESS BY FRANK AS CAMPBELL WHATEVER THE OUTCOME OF SEN ROBERT PACKWOOD'S COURTROOM BATTLE TO LIMIT ACCESS TO HIS PRIVATE DIARIES BY THE SENATE ETHICS COMMITTEE HE STILL FACES A MAJOR OBSTACLE TO A FAIR HEARING IF THE COMMITTEE ULTIMATELY CHARGES HIM WITH MISCONDUCT THE PROBLEM LIES IN CURRENT SENATE RULES THOSE RULES PROVIDE THAT THE SAME COMMITTEE MEMBERS WHO DIRECT THE PRELIMINARY INQUIRY AND VOTE TO ISSUE CHARGES ALSO SIT IN JUDGMENT OF THE CHARGES AT A TRIALLIKE HEARING BY THAT TIME HOWEVER THE MEMBERS WILL NO LONGER BE IMPARTIAL WHY BECAUSE THEY PREJUDGE THE EVIDENCE WHEN VOTING TO ISSUE THE CHARGES THE ETHICS COMMITTEE SUBPOENAED MR PACKWOOD'S DIARIES TO GET INFORMATION THAT MAY REVEAL ADDITIONAL MISBEHAVIOR BEYOND THE ALLEGATIONS OF SEXUAL HARASSMENT AND WITNESS INTIMIDATION THAT WERE THE ORIGINAL FOCUS OF THE INVESTIGATION THE SUBPOENA TARGETS NEW INFORMATION ABOUT AN ALLEGED SOLICITATION BY MR PACKWOOD OF A JOB FOR HIS ESTRANGED WIFE FROM LOBBYISTS INTERESTED IN LEGISLATION BEFORE A COMMITTEE ON WHICH HE SERVED MR PACKWOOD ATTACKED THE SUBPOENA IN COURT FOR SEEKING INFORMATION IRRELEVANT TO THE ORIGINAL INQUIRY THE COMMITTEE DEFENDED ITS SUBPOENA BY DRAWING AN ANALOGY TO THE CRIMINAL JUSTICE SYSTEM AT THIS STAGE OF THE CASE IT ARGUED THE COMMITTEE ACTS JUST LIKE A GRAND JURY INVESTIGATING A CRIME ITS SUBPOENAS SHOULD THEREFORE BE ALLOWED THE SAME WIDE LATITUDE AS THOSE OF A GRAND JURY THAT CAN FOLLOW EVIDENCE WHEREVER IT LEADS THE TRIAL COURT SIDED WITH THE COMMITTEE AND MR PACKWOOD IS NOW APPEALING THE CRIMINAL JUSTICE ANALOGY WORKS FOR THE FIRST STAGE OF THE COMMITTEE PROCESS LIKE A GRAND JURY THAT ISSUES AN INDICTMENT AT THE CLOSE OF ITS INVESTIGATION THE COMMITTEE WILL ISSUE CHARGES AGAINST MR PACKWOOD AT THE END OF ITS PRELIMINARY INQUIRY IF IT FINDS SUBSTANTIAL CREDIBLE EVIDENCE WHICH PROVIDES SUBSTANTIAL CAUSE TO CONCLUDE THAT HE VIOLATED SENATE RULES ONCE THE COMMITTEE ISSUES CHARGES HOWEVER THE ANALOGY NO LONGER HOLDS IN THE CRIMINAL JUSTICE SYSTEM THE CHARGING AND JUDGING ROLES ARE SEPARATED PERFORMED BY DIFFERENT INDIVIDUALS A GRAND JURY'S JOB IS DONE ONCE IT FINDS PROBABLE CAUSE THAT A CRIME HAS OCCURRED AND ISSUES AN INDICTMENT THE TASK OF JUDGING GUILT OR INNOCENCE IS LEFT TO A PETIT JURY THAT HEARS THE EVIDENCE FOR THE FIRST TIME AT THE TRIAL IN CONTRAST THE SAME ETHICS COMMITTEE MEMBERS WHO ACT AS GRAND JURORS AND VOTE TO ISSUE CHARGES SIMPLY SWITCH HATS AND BECOME PETIT JURORS AT THE TRIALLIKE HEARING THEY WILL THEN BE JUDGING WHETHER MR PACKWOOD IS GUILTY OR INNOCENT OF CHARGES THEY VOTED TO BRING HOW CAN THE COMMITTEE MEMBERS POSSIBLY BE VIEWED AS OBJECTIVE JUDGES WHEN THEY HAVE ALREADY REVIEWED THE VOLUMES OF EVIDENCE AMASSED DURING THE INVESTIGATION AND CONCLUDED THAT THEY PROVIDE SUBSTANTIAL CAUSE TO BELIEVE THAT MR PACKWOOD VIOLATED SENATE RULES EVEN WITH A STRICTER BURDEN OF PROOF IN HIS FAVOR MR PACKWOOD WILL BE FIGHTING AN UPHILL BATTLE AT HIS HEARING HAVING ALREADY FAILED TO PERSUADE THE SAME INDIVIDUALS NOT TO CHARGE HIM IN THE FIRST PLACE THAT THE FULL SENATE ULTIMATELY VOTES ON DISCIPLINARY ACTION DOES NOT REMEDY THE UNFAIRNESS SINCE BY THEN THE MOMENTUM IS SERIOUSLY AGAINST THE MEMBER THE PROBLEM IS ILLUSTRATED BY WHAT HAS ALREADY HAPPENED IN THIS INVESTIGATION DURING THE SENATE DEBATE ON JUDICIAL ENFORCEMENT OF THE SUBPOENA ETHICS COMMITTEE MEMBERS PLAYED THEIR CURRENT ROLE AS INVESTIGATORS WITH VIGOR IN DEFENDING THE SUBPOENA COMMITTEE CHAIRMAN RICHARD BRYAN D NEV EVEN WENT SO FAR AS TO ARGUE THAT CERTAIN DIARY ENTRIES RAISE QUESTIONS OF POSSIBLE CRIMINAL VIOLATIONS BY MR PACKWOOD A SUGGESTION THAT LED THE JUSTICE DEPARTMENT TO ISSUE ITS OWN SUBPOENA FOR THE DIARIES IS IT REASONABLE NOW TO EXPECT MR BRYAN TO SHED THE TOUGH DEMEANOR OF A TENACIOUS INVESTIGATOR AND ASSUME AT A HEARING THE CALM PERSONA OF A DISPASSIONATE AND UNBIASED JUDGE IN A 1972 CASE INVOLVING A SENATOR CHARGED WITH BRIBERY THE SUPREME COURT NOTED THE SHORTCOMINGS OF THE CONGRESSIONAL DISCIPLINARY PROCESS IN COMPARISON WITH A CONVENTIONAL CRIMINAL TRIAL AN ACCUSED MEMBER IS AT THE MERCY OF AN ALMOST UNBRIDLED DISCRETION OF THE CHARGING BODY THAT FUNCTIONS AT ONCE AS ACCUSER PROSECUTOR JUDGE AND JURY FROM WHOSE DECISION THERE IS NO ESTABLISHED RIGHT OF REVIEW IN OTHER WORDS CONGRESS IS A POLITICAL FORUM NOT A COURT OF LAW STILL FOR THE SAKE OF PUBLIC CONFIDENCE IN THE PROCEEDINGS AND FAIRNESS TO THE ACCUSED IT IS IMPORTANT THAT THE SENATE'S DISCIPLINARY PROCESS HAVE CREDIBILITY AND INTEGRITY THE SENATE SHOULD NOT ALLOW THE ETHICS COMMITTEE TO COMPARE ITSELF TO THE CRIMINAL JUSTICE PROCESS IN THE INTEREST OF ENFORCING ITS SUBPOENAS WHILE BEGGING OFF THE ANALOGY TO INDULGE THE POLITICAL CONVENIENCE OF HAVING THE SAME MEMBERS PERFORM WHAT SHOULD BE SEPARATE ROLES IRONICALLY WHEN FORMULATING THE RULES THAT GOVERN THE ETHICS COMMITTEE THE SENATE EXPRESSED A CONCERN FOR FAIRNESS DECLARING THAT THE RULES AND REGULATIONS OF THE SELECT COMMITTEE ON ETHICS SHOULD PROVIDE FOR STRICT PROCEDURAL PROTECTIONS TO SAFEGUARD THE INTERESTS OF THE INDIVIDUAL UNDER INVESTIGATION YET ONE ELEMENTARY RULE OF FAIRNESS WAS OVERLOOKED THOSE WHO CHARGE SHOULD NOT JUDGE THIS IS NOT TO SAY THAT THE COMMITTEE MEMBERS DON'T HAVE EVERY INTENTION OF KEEPING AN OPEN MIND AT A HEARING ON CHARGES OF MISCONDUCT IT IS SIMPLY TO SAY THAT THE REST OF THE SENATE EXPECTS TOO MUCH OF THEIR COLLEAGUES ON THE ETHICS COMMITTEE BY ASKING THEM TO PERFORM ALL THE ROLES IN THE DISCIPLINARY PROCESS THE APPEARANCE IF NOT THE FACT OF IMPARTIALITY SUFFERS UNDER THE CURRENT SYSTEM AS RECENTLY AS THE INVESTIGATION OF FORMER SPEAKER JIM WRIGHT THE HOUSE HAD THE SAME SYSTEM OF ALLOWING IDENTICAL MEMBERS TO ISSUE AND JUDGE CHARGES OF ETHICAL MISCONDUCT IN THE WAKE OF SIMILAR CRITICISM THE HOUSE CHANGED ITS PROCEDURES WITH THE PASSAGE OF THE ETHICS REFORM ACT OF 1989 THE HOUSE ETHICS COMMITTEE NOW HAS AN INVESTIGATIVE SUBCOMMITTEE CONDUCT THE INVESTIGATION AND VOTE TO ISSUE CHARGES WHILE THE BALANCE OF THE COMMITTEE MEMBERS SIT IN JUDGMENT OF THE CHARGES AT AN ADJUDICATORY HEARING THE SENATE LIKE THE HOUSE BEFORE IT SHOULD CHANGE THIS FLAW IN ITS ETHICS PROCESS IT SHOULD DESIGNATE SEPARATE SENATORS TO WEIGH THE EVIDENCE AND PASS JUDGMENT ON ANY CHARGES THAT MAY BE BROUGHT AGAINST MR PACKWOOD LIKE THE APPOINTMENT OF AN INDEPENDENT COUNSEL TO INVESTIGATE PRESIDENT CLINTON'S INVOLVEMENT IN THE WHITEWATER AFFAIR THIS REFORM WILL ENHANCE THE APPEARANCE OF IMPARTIALITY IN THE PROCESS AND INCREASE PUBLIC CONFIDENCE IN THE RESULT IF THE SENATE IS EAGER TO EXORCISE THE GHOST OF THE CLARENCE THOMAS HEARINGS BY VIGOROUSLY PURSUING CHARGES OF SEXUAL HARASSMENT AGAINST ONE OF ITS MEMBERS IT SHOULD DO SO WITHOUT SACRIFICING A LEVEL PLAYING FIELD FOR THE ACCUSED MR CAMPBELL IS A WASHINGTON ATTORNEY WHO HAS DEFENDED MEMBERS OF CONGRESS IN BOTH CRIMINAL AND ETHICS CASES 9402160065 940216 LETTERS TO THE EDITOR A BRUTAL PARIAH REGIME' YOUR JAN 11 PAGEONE ARTICLE JUNTA'S HELPER SHUNNED BY THE WEST BURMA'S RULERS FIND AN ALLY IN MANHATTAN HELPED EXPOSE MIRIAM SEGAL'S CORPORATE COLLABORATION WITH THE BURMESE STATE LAW AND ORDER RESTORATION COUNCIL SLORC HER CATEGORICAL DISMISSAL OF SLAVE LABORERS IN BURMA AS JUST MURDERERS AND DRUG ADDICTS EXEMPLIFIES HER CALLOUS DISREGARD FOR THE SLORC'S PERVASIVE VIOLATIONS OF HUMAN RIGHTS WHO MANDATED MIRIAM SEGAL TO DECIDE WHAT IS BEST FOR THE BURMESE PEOPLE THAT IS FOR THE PEOPLE OF BURMA TO DECIDE THROUGH THEIR ELECTED REPRESENTATIVES UNFORTUNATELY YOU FAILED TO MENTION THE CALL FOR ECONOMIC AND INVESTMENT SANCTIONS MADE BY THE NATIONAL COALITION GOVERNMENT OF THE UNION OF BURMA AFTER VISITING REFUGEES ON THE THAIBURMA BORDER IN FEBRUARY 1993 10 NOBEL PEACE PRIZE LAUREATES INCLUDING THE DALAI LAMA ARCHBISHOP DESMOND TUTU BETTY WILLIAMS MAIREAD MAGUIRE AND DR OSCAR ARIAS ALONG WITH REPRESENTATIVES OF AMNESTY INTERNATIONAL AND AMERICAN FRIENDS SERVICE COMMITTEE REAFFIRMED THE CALL FOR ECONOMIC AND INVESTMENT SANCTIONS ON BURMA THE COALITION GOVERNMENT HAS THE MANDATE TO SPEAK FOR THE BURMESE PEOPLE ITS LEGITIMACY IS BASED ON THE FACT THAT IT CONSISTS OF REPRESENTATIVES DULY ELECTED IN 1990 WHO WERE PREVENTED FROM TAKING THEIR SEATS AND FORMING A GOVERNMENT BY THE MILITARY JUNTA IN THOSE ELECTIONS THE NATIONAL LEAGUE FOR DEMOCRACY LED BY NOBEL PEACE PRIZE LAUREATE AUNG SAN SUU KYI WON MORE THAN 80 OF THE SEATS THE SLORC'S LACK OF LEGITIMACY IS STARKLY EVIDENCED BY THE FACT THAT IN THE SAME ELECTIONS ITS NATIONAL UNITY PARTY WON A MINUSCULE 2 OF THE SEATS BURMA STANDS TO BE THE SOUTH AFRICA OF THE 1990S IT IS A COUNTRY WHERE A BRUTAL PARIAH REGIME HOLDS REIGN PROPPED UP BY AN UNLIKELY COMBINATION OF CHINESE MILITARY ASSISTANCE DRUG PROFITS AND SUPPORT FROM WESTERN AND ASIAN CORPORATE INVESTORS THE COALITION FOR CORPORATE WITHDRAWAL FROM BURMA BRINGS TOGETHER SOCIAL INVESTMENT FIRMS ENVIRONMENTALISTS RELIGIOUS INVESTORS TRADE UNIONS HUMANRIGHTS ACTIVISTS AND BURMESE EXILES THE COALITION STANDS IN SUPPORT OF THE PEOPLE OF BURMA THEIR ELECTED REPRESENTATIVES AND THEIR CLEARLY EXPRESSED DESIRE FOR DEMOCRACY AND HUMAN RIGHTS WE SUMMARILY REJECT THE SELFSERVING ARGUMENTS OF MIRIAM SEGAL AND OTHER CORPORATE APOLOGISTS FOR THE BURMESE MILITARY JUNTA THE COALITION WILL NOT REST UNTIL THE CORPORATE LIFELINE TO THE SLORC IS CUT THE OLD ADAGE TELLS US FOR EVIL TO TRIUMPH IT IS NECESSARY ONLY THAT GOOD MEN REMAIN SILENT AS THE WORLD MAINTAINS RELATIVE SILENCE ABOUT THE ANTIDEMOCRATIC REPRESSION IN BURMA PEOPLE LIKE MIRIAM SEGAL WITTINGLY OR UNWITTINGLY ACT AS STOOGES OF THE MILITARY JUNTA SPREADING ITS EVIL PROPAGANDA THE SELFSTYLED STATE LAW AND ORDER RESTORATION COUNCIL IS NOT THE LEGITIMATE GOVERNMENT OF BURMA THE PEOPLE OF BURMA ARE NO LESS DESERVING OF THEIR DEMOCRATIC RIGHTS THAN THE PEOPLE OF HAITI SIMILARLY DESPOILED BY A MILITARY JUNTA UNTIL IT RECOGNIZES THE RESULTS OF THE 1990 ELECTION IN WHICH THE BURMESE PEOPLE OVERWHELMINGLY AFFIRMED THEIR DESIRE FOR DEMOCRACY AND NEGOTIATES A TRANSITION TO DEMOCRATIC RULE THE WEST AND THE REST OF THE WORLD SHOULD SUBJECT SLORC TO SANCTIONS AT LEAST AS SEVERE AS THOSE IMPOSED ON HAITI 9402160064 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY WHAT IS AT STAKE IN THE XVII OLYMPIAD BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS THE EARLY MONEY WAS ON KERRIGAN ART MANTERIS SAYS NOT SPEAKING METAPHORICALLY BUT ALL THE LATE ACTION HAS BEEN ON HARDING TO FINISH HIGHER IN THE STANDINGS MR MANTERIS THE BOOKMAKER FOR THE LAS VEGAS HILTON RACE AND SPORTS SUPERBOOK IS ALSO POSTING ODDS ON THE FOURMAN BOBSLED ICE HOCKEY AND DOWNHILL SKIING HE IS ONE OF THE MANY PEOPLE IN LAS VEGAS WHO ARE MAKING IT POSSIBLE FOR ALL AMERICANS MEN AND WOMEN YOUNG AND OLD TO PURSUE THEIR DREAM OF CASHING IN ON THE OLYMPICS THERE IS A CATCH TO WAGER ON THE XVII WINTER GAMES YOU MUST BE PHYSICALLY PRESENT IN NEVADA THE ONLY STATE WHERE THIS OLYMPIC ACTIVITY IS LEGAL IN ITSELF THAT ISN'T ALTOGETHER A BAD THING THE SPORTSBETTING OPERATIONS HERE ARE LIKE WHAT YOU MIGHT GET IF YOU ASKED FRANK SINATRA TO DESIGN AN AIRPORT WAITING ROOM SOFTLY LIT CAVERNS WITH ROWS OF COMFORTABLE CHAIRS TWINKLING INFORMATION DISPLAYS FREE DRINKS BRASS RAILS WAITRESSES IN MICROSKIRTS CASH MACHINES COURTEOUS ATTENDANTS AT COMPUTERS BEHIND SERVICE COUNTERS AND GIANT TELEVISION SCREENS SHOWING SCORES OF SPORTING EVENTS ALL AT ONCE BUT GETTING TO LAS VEGAS IS FOR MOST AMERICANS A CONSIDERABLE EXPENSE AND A BETTOR HOPING TO COVER THE PLANE FARE WITH A BIG SCORE ON THE GIANT SLALOM IS LIKELY TO BE DISAPPOINTED THE BOOKIES HERE ARE HAPPY TO TAKE BETS OF A FEW HUNDRED DOLLARS ON THE GAMES BUT THEY KEEP THE ACTION SMALL FIGURING THAT ANYONE WHO ARRIVED WITH A SUITCASE FULL OF CASH MUST KNOW MORE ABOUT EXOTIC SPORTS THAN THEY DO OR AT LEAST MORE ABOUT SNOW AND ICE A COUPLE OF PEOPLE HAVE COME IN ASKING IF WE TOOK BETS ON THE WINTER GAMES SAYS JIMMY VACCARO BOOKMAKER FOR THE MIRAGE I WENT UP TO EACH OF THEM AND ASKED WHERE THEY WERE FROM THEY BOTH SAID MINNESOTA AMONG GAMBLERS HERE WHO MOSTLY BET ON HORSE RACING BASKETBALL FOOTBALL AND BOXING ENTHUSIASM VARIES FOR THE WINTER GAMES I WOULD NEVER BET THE OLYMPICS SAYS PATRICK SMITH A VISITOR FROM PHOENIX LOOKING SLIGHTLY HORRIFIED I DON'T THINK MONEY SHOULD BE BET ON AMATEUR SPORTS ON THE OTHER HAND THE IDEA SOUNDS PRETTY GOOD TO BRUCE JARRETT A MAN WHO MAKES HIS LIVING BETTING ON POKER AND SPORTS GAMBLING IS LIKE A CATANDMOUSE GAME BETWEEN BETTOR AND BOOKIE HE SAYS IT COULD BE FROG JUMPING OR THE STOCK MARKET IF THERE'S VALUE IN IT WHY NOT ROBERT GREINER WHO SPENDS SIX MONTHS A YEAR GAMBLING IN LAS VEGAS AND THE OTHER SIX RUNNING A RESTAURANT AND MOTEL IN SICAMOUS BRITISH COLUMBIA THE HOUSEBOAT CAPITAL OF CANADA IS INTERESTED IN BETTING HOCKEY WHAT'S IMPORTANT IS WATCHING ALL THE GAMES WE CALL IT PAYING YOUR DUES HE SAYS KEEPING ONE EYE ON A TELEVISION SCREEN AS A WAITRESS PLACES A FRESH DRINK BY HIS ELBOW WITH ALL THIS CHANGE IN THE SOVIET UNION THE RUSSIANS AND THE CZECHS MIGHT BE A LITTLE WEAKER THIS TIME HOCKEY IS IN FACT AT THE ROOT OF OLYMPIC GAMBLING THE WINTER OLYMPICS CAME OUT OF THE CLOSET SO TO SPEAK IN 1980 WITH THE HOCKEY TEAM MR VACCARO SAYS WE BOOKED IT AND HAD A DECENT AMOUNT OF ACTION THE IDEA WAS A NATURAL BECAUSE GAMBLERS ALREADY WERE ACCUSTOMED TO BETTING ON GAMES IN THE NATIONAL HOCKEY LEAGUE HOCKEY TIP FROM MONTANA MELVIN VENETZ A GAMBLER WITH A CANE WHO SAYS HE ONCE RAN FOR CONGRESS ON A PLATFORM OF SOCIALIZED MEDICINE BET THE GOALIE JUST THE WAY YOU BET THE PITCHER IN BASEBALL OLYMPIADS SINCE 1980 HAVE COINCIDED WITH A PERIOD OF SPECTACULAR GROWTH IN SPORTS BETTING IN NEVADA WHERE ONCE THERE WAS A HANDFUL OF SPORTS BOOKS NOW THERE ARE 112 LAST YEAR THEY TOOK IN A TOTAL OF 726 MILLION IN PRETAX VIGORISH THE FRACTION OF THAT AMOUNT THAT IS SPENT ON THE OLYMPICS IS SO SMALL THAT THE NEVADA GAMING CONTROL BOARD DOESN'T EVEN TRACK IT BUT CASINO OWNERS LOVE A GIMMICK SO BOOKMAKERS HAVE ADDED MORE EVENTS THE OTHER MAJOR ENCOURAGEMENT TO OLYMPIC GAMBLING HAS BEEN MICHAEL ROXY ROXBOROUGH WHO ALMOST SINGLEHANDEDLY MODERNIZED AND COMPUTERIZED THE BUSINESS OF SETTING ODDS AND POINT SPREADS ON SPORTING EVENTS FROM A MODEST OFFICE AT THE TOP OF THE BANK OF AMERICA BUILDING HERE MR ROXBOROUGH GATHERS INTELLIGENCE ON SPORTING EVENTS OF ALL KINDS CALCULATES ODDS ON THEM AND BEAMS THEM OUT TO BOOKMAKERS ALL OVER THE STATE ABOUT 80 OF THE NEVADA SPORTS BOOKS SUBSCRIBE TO HIS SERVICE BOOKIES MAY ALTER HIS ODDS ACCORDING TO THEIR OWN HUNCHES BUT ROXY'S LINE IS USUALLY THE STARTING POINT THIS SERVICE IS IMPORTANT FOR SOMETHING LIKE THE SUPER BOWL INDISPENSABLE FOR EXOTIC NORDIC AND ALPINE SPORTS THIS YEAR MR ROXBOROUGH IS SETTING ODDS ON HOCKEY DOWNHILL SKIING GIANT SLALOM SPEED SKATING FIGURE SKATING AND NATIONAL MEDAL TOTALS NORWAY AND GERMANY ARE THE FAVORITES AT 6TO5 ONCE AGAIN THE ACTION PROBABLY WON'T AMOUNT TO MUCH BUT YOU NEVER KNOW IF IT COMES DOWN TO TONYA VERSUS NANCY WE MIGHT WRITE SOME SERIOUS BUSINESS THIS YEAR MR VACCARO SAYS 9402160063 940216 PEPPERAND SALT PAGERS HAVE BECOME INVASIVE SORRY BUT I CAN'T BE REACHED I INTERFACE 9402160062 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY THE UP SIDE OF SKIING HAS ITS DOWNSIDE TOO BY FREDERICK C KLEIN STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER IF ALPINE SKIING IS DOWNHILL I'VE BEEN ASKED DOES THAT MEAN THAT NORDIC SKIING IS UPHILL THAT'S A REASONABLE QUESTION THE ANSWER IS YES IT IS UPHILL MUCH OF THE TIME AS YOU MIGHT EXPECT THIS PRESENTS CERTAIN DIFFICULTIES GETTING UPHILL ON SKIS REQUIRES A GOOD DEAL OF EFFORT AS HAS BEEN EVIDENT IN THE CROSSCOUNTRY IE NORDIC RACES STAGED IN THESE OLYMPIC GAMES THE MEN AND WOMEN WHO DO IT WEAR SPANDEX OUTFITS JUST LIKE THEIR ALPINE BRETHREN AND SISTEREN BUT UNLIKE THOSE WORTHIES THEIR SUITS BECOME SWEATED THROUGH FAIRLY EARLY IN THEIR RACES ALPINE SKIERS RISK BREAKING THEIR BONES CAREERING DOWN THEIR HILLS BUT THEY DO NOT COLLAPSE IN PANTING HEAPS AFTERWARD NOR MUST THEY SEEK WARMTH AND SHELTER SO QUICKLY YOU CAN ALWAYS TELL THE CROSSCOUNTRY SKIERS BY OUR POSTRACE HACKS SAYS NINA KEMPPEL OF ANCHORAGE ALASKA A MEMBER OF THE US TEAM THEY LAST FROM NOVEMBER UNTIL ABOUT MIDAPRIL MS KEMPPEL FINISHED 28TH IN THE WOMEN'S FIVEKILOMETER CLASSICAL CROSSCOUNTRY EVENT YESTERDAY THE BEST AMONG FOUR AMERICANS WE YANKS TYPICALLY DON'T DO WELL IN THESE THINGS NO AMERICAN WOMAN HAS MEDALED IN THE SPORT AND ONLY ONE MAN BILL KOCH IN 1976 HAS THE WINNER WAS LYUBOV EGOROVA OF RUSSIA WHO COVERED THE TREELINED COURSE THAT INVOLVED ALMOST 600 FEET OF CLIMBING IN 14088 MANUELA DI CENTA OF ITALY WAS SECOND ALMOST 20 SECONDS BEHIND AND MARJALIISA KIRVESNIEMI OF FINLAND WAS THIRD NONE OF THE MEDALISTS WAS NORWEGIAN WHICH MAY COME AS A SURPRISE TO AMERICANS WHO'VE BEEN TOLD MANY TIMES SINCE THE LILLEHAMMER GAMES BEGAN HOW CROSSCOUNTRY SKIING IS NORWAY'S NATIONAL SPORT AND PASSION THE FACT IS THAT WHILE MANY NORWEGIANS GROW UP WITH SKIS ON THEIR FEET AS OPPOSED TO POLES WHO GROW UP WITH THEM ON THEIR NAMES SO DO OTHERS WHO LIVE IN SIMILARLY FROSTY CLIMES A CONTRASTING VIEW OF NORWEGIAN HARDINESS WAS OFFERED TO ME BY A LILLEHAMMER CAB DRIVER HE NOTED THAT A BAN ON RESIDENT AUTO TRAFFIC WHICH BECAME EFFECTIVE 6 PM LAST SATURDAY TO CLEAR THE STREETS FOR VEHICLES LEAVING THE GAMES' OPENING CEREMONIES SUCCEEDED ONLY IN TYING UP THINGS MORE THAN USUAL HE EXPLAINED AT 545 EVERYBODY IN LILLEHAMMER GOT IN HIS CAR AND DROVE 100 METERS TO THE NEAREST GROCERY OR DRUG STORE FOR LASTMINUTE ERRANDS HERE EVERYBODY DRIVES EVERYWHERE THIS IS NOT TO SAY THAT THE LOCALS' LOVE FOR CROSSCOUNTRY ISN'T GENUINE AS YOU MAY HAVE READ ON THESE PAGES YESTERDAY SOME ARE SO NUTS ABOUT IT THEY'VE BEEN CAMPING OUT IN THE SNOW TO GET GOOD VANTAGE POINTS FOR THE RACES IN AND AROUND BIRKENBEINEREN SKI STADIUM I DON'T GO IN FOR SUCH BLATANT HARDINESS BUT I DID STAND OUTDOORS FOR MORE THAN AN HOUR WATCHING THE 5K TAKING NOTES WEARING HEAVY GLOVES WITH THE THERMOMETER AT TWO DEGREES FAHRENHEIT IS ABOUT AS MUCH WINTER HARDSHIP AS I'M UP FOR THE NORWEGIAN WOMEN'S CROSSCOUNTRY STRUGGLES HAVE BEEN A TOPIC OF DISCUSSION HEREABOUTS THIS WEEK VEGARD ULVANG BJORN DAHLIE AND THOMAS ALSGAARD MAY RULE THE MEN'S TRAILS BUT THEIR FEMALE COUNTERPARTS HAVEN'T BEEN AS SUCCESSFUL EARLY OR LATE WINNING JUST TWO GOLD MEDALS IN ALL OF OLYMPIA AND NONE SINCE 1984 THIS HAS BEEN PARTLY DUE TO HISTORICAL ACCIDENT NORWEGIAN WOMEN HAVE SHONE IN NONOLYMPIC YEARS DOMINATING THE WORLD CHAMPIONSHIPS OF 1982 AND '85 IT ALSO MIGHT BE TRACEABLE TO THE NATION'S SLOWNESS IN ADOPTING THE FASTER SKATINGLIKE FREESTYLE TECHNIQUE WHICH BECAME A SEPARATE RACING CATEGORY BEGINNING WITH THE 1988 GAMES IN CLASSICAL CROSSCOUNTRY THE SKIS STAY PARALLEL WE NORWEGIANS THINK THERE'S SOMETHING WRONG WITH ANYTHING NEW NOTES ROLF NORDBERG NORWAY'S PRESS ATTACHE FOR THE SPORT MOSTLY THOUGH PEOPLE HERE SEEM TO TAKE SPORTING AND OTHER VICISSITUDES AS THE NORMAL WAY OF THE WORLD WHEN OUR WOMEN WILL GET GOOD OUR MEN WILL GET BAD GRUMPED A NORWEGIAN NEXT TO ME IN THE PRESS ROOM READERS OF LAKE WOEBEGON DAYS WILL RECOGNIZE THAT SENTIMENT THE CROWD FOR YESTERDAY'S RACE REPORTEDLY NUMBERED ABOUT 30000 WHICH IS ENORMOUS FOR THE REST OF THE WORLD BUT ABOUT HALF THE FIGURE OF THE DAY BEFORE WHEN MESSRS ALSGAARD AND DAHLIE FINISHED 12 IN THE MEN'S 30KILOMETER FREESTYLE ONE LIKELY CAUSE FOR THE DOWNTURN WAS THAT THE 5K DISTANCE AMOUNTS TO A SPRINT IN CROSSCOUNTRY AND THUS WASN'T WORTH THE TRIP FOR MANY MEN SKIERS DON'T BOTHER WITH ANYTHING SHORTER THAN 10K LONG OR SHORT DOESN'T MATTER FOR WINNER EGOROVA THOUGH THE 27YEAROLD SCHOOLTEACHERTOBE FROM TOMSK WON FIVE MEDALS AT THE ALBERTVILLE GAMES IN 1992 THREE GOLDS AND TWO SILVERS AT DISTANCES FROM FIVE TO 30 KILOMETERS TODAY WAS MY USUAL RACE NOTHING SPECIAL SHE SAID AND NOBODY DISAGREED THIRDPLACE FINISHER KIRVESNIEMI ALSO HAS AN ILLUSTRIOUS HISTORY SHE IS 38 YEARS OLD AND THIS IS HER SIXTH OLYMPIC GAMES IN 1984 AT SARAJEVO SHE WON THREE INDIVIDUAL GOLDS HER PLEASANT AND SMILING POSTRACE DEMEANOR YESTERDAY CONTRASTED MARKEDLY WITH HER BEHAVIOR AFTER HER LAST VICTORY IN THOSE GAMES BACK THEN SHE JUMPED A FENCE AND RAN ACROSS A SNOWY FIELD TO AVOID A PACK OF JOURNALISTS FROM HER HOME COUNTRY SOME OF WHOM HAD WRITTEN THINGS SHE DISLIKED SHE SUBMITTED TO INTERVIEWS AND PHOTOGRAPHS ONLY AFTER BEING CHASED AND CORNERED IF SHE'D HAVE KEPT ON HER SKIS AND THE FIELD HAD BEEN UPHILL THEY NEVER WOULDA CAUGHT HER 9402160061 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY SKIING FRANKFURTERS GET SERIOUSLY HIGH BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LILLEHAMMER KRIS FUZZY FEDDERSEN HAS SPENT A DECADE PREPARING FOR THE HISTORIC MOMENT NEXT WEEK WHEN HIS LIFE'S PURSUIT BECOMES AN OLYMPIC SPORT A LOT OF PEOPLE ARE GOING TO LEARN THAT WE'RE A SERIOUS DISCIPLINED SPORT HE VOWS ALSO READY FOR THIS AUGUST MILESTONE ARE FUZZY'S TEAMMATES JETHRO THE ACE BERGIE JUNIOR AND CHIPPER THE FLIPPER SO IS THEIR COACH THE HATCHETMAN WHO PLAYS WITH CHIPPER IN A ROCK BAND CALLED SLAPPY NAMED AFTER THE DRUMMER'S DOG THEY SING AN ORIGINAL TUNE ABOUT SKIING CALLED TIME WAITS FOR SNOWMAN AND SO ARE THE SPORT'S JUDGES EQUIPPED WITH A FORMAL NEW RULEBOOK INCLUDING SUCH PRONOUNCEMENTS AS SECTION 6005 GENERAL DESCRIPTION OF AERIAL MANEUVERS LEROY THIS IS A MULE KICK IN A TIP CROSS POSITION MULE KICK THIS IS A COMBINATION OF THE SIDE KICK AND THE BACK SCRATCHER SEE ALSO ENTRIES FOR TWISTER HELICOPTER SPLITSTER SPREAD EAGLE IRON CROSS ZUDNICK AND DAFFY THIS IS FREESTYLE AERIAL SKIING A SPORT MOST PEOPLE KNOW BY A DISRESPECTFUL SIXLETTER EPITHET FUZZY AND HIS TEAMMATES LOATHE A MEAT PRODUCT CONSUMED AT BALLGAMES WITH MUSTARD IT GREW UP ON THE WILD FRINGES OF AMERICAN SKI RESORTS A VINTAGE 1970S BREW OF CHAMPAGNE LSD WETTSHIRT CONTESTS AND HIDEOUS DISFIGURING INJURIES NOW AFTER AN UNLIKELY JOURNEY TO SEMIRESPECTABILITY IT WILL MAKE ITS DEBUT NEXT WEEK AS THE OLYMPICS' NEWEST MEDAL EVENT FLYING HIGH ABOVE THE KANTHAUGEN ARENA HERE THE FIRST OLYMPIC AERIALISTS WILL ALL BE ASSAYING VARIATIONS OF THE SPORT'S MOST BRUTAL AND OUTRAGEOUS MOVE THE MULTIPLE BACK FLIP WITH BODY TWISTS THE HATCHETMAN NE CHRIS HASLOCK EXPLAINS YOU SKI DOWN THIS 20TO30 DEGREE SLOPE YOU COME DOWN ON THIS FLAT YOU RIDE UP THIS WALL OF SNOW THE ANGLE ON IT IS 67 DEGREES ON THE TOP IT SHOOTS YOU PRETTY MUCH STRAIGHT UP ONCE YOU LEAVE THE JUMP IT'S QUITE A LOT LIKE DIVING YOU DO MULTIPLE SOMERSAULTS AND TWISTS THEN INSTEAD OF DIVING INTO YOUR LANDING YOU OBVIOUSLY TRY TO LAND ON YOUR FEET IT DOESN'T ALWAYS WORK OUT THAT NEATLY DEMONSTRATING THE SPORT AT THE 1988 OLYMPICS IN CALGARY MR HASLOCK SKIED INTO A HIGH WIND THAT WHIPPED SAND ONTO THE COURSE AND SLOWED DOWN HIS TAKEOFF UNABLE TO COMPLETE HIS FLIPS HE LANDED ON HIS SKI TAILS AND SLAMMED BACKWARD ONTO THE GROUND WHERE HE LAY UNCONSCIOUS FOR HALF A MINUTE THE US TEAM'S TOP STAR A COCKY YOUNG MINNESOTAN NAMED TRACE THE ACE WORTHINGTON DESCRIBES ANOTHER HAZARD THAT AERIALISTS CALL CAT OUT THE WINDOW IF YOU MAKE A MISTAKE ON YOUR TAKEOFF YOU CAN LOSE YOUR PERCEPTION OF THE GROUND HE SAYS YOU'RE SPINNING FAST AND YOU CAN GET LOST IN THE AIR IT'S A WILD FEELING YOU'RE KIND OF LIKE FIGHTING TO FIND WHERE YOU ARE MR WORTHINGTON AND A HANDFUL OF OTHER TOP FLYBOYS WILL COMPETE NEXT WEEK WITH THE MOST ADVANCED PERMISSIBLE MANEUVER IN AERIAL SKIING A TRIPLE BACKWARD FLIP WITH A QUADRUPLE BODY TWIST JUDGES WILL RATE THEM ALL ON FORM LANDING AND A HEIGHTANDDISTANCE SCORE FORMALLY CALLED AIR WE CATCH AN EXTREME AMOUNT OF AIR MR WORTHINGTON SAYS THE STORY OF AERIAL SKIING BEGINS HERE IN NORWAY ON THE EVE OF WORLD WAR II THE WORLD CHAMPION SKIJUMPER BIRGER RUUD WENT TO OSLO FOR A SKI SHOW IN THE AUDIENCE WAS 12YEAROLD STEIN ERIKSEN WHO WATCHED WITH AMAZEMENT AS MR RUUD TURNED A SOMERSAULT IN THE AIR DURING THE WAR SKIING FURTIVELY IN THE WOODS AROUND NAZIOCCUPIED OSLO YOUNG STEIN TAUGHT HIMSELF TO FLIP HE ADDED A DAZZLING TOUCH SWANDIVING THROUGH THE AIR WITH HIS BODY EXTENDED PERFECTLY STRAIGHT IN BETWEEN SOMERSAULTS MR ERIKSEN BECAME A SKIING LEGEND WINNING GOLD AND SILVER MEDALS AT THE 1952 OLYMPICS IN OSLO HE MOVED TO AMERICA TWO YEARS LATER AND BECAME A SUPERSTAR SKI INSTRUCTOR FAMOUS FOR HIS CHISELED LOOKS DASHING STYLE AND WEEKLY EXHIBITION I MADE IT A TRADEMARK OF MINE WHEN I CAME TO THE STATES RECALLS MR ERIKSEN NOW 66 EVERY SUNDAY AT 1 O'CLOCK NO MATTER WHERE I WAS STEIN WOULD DO HIS FLIP SOON YOUNG SKI STUDS ACROSS AMERICA WERE IMITATING STEIN AND HIS FLIP IN 1971 SKIING MAGAZINE SUMMONED THE BEST OF THEM TO WATERVILLE VALLEY NH FOR THE WORLD'S FIRST HOTDOG SKI TOURNAMENT IT WAS A SNOWY WOODSTOCK WITH THE CAST OF ANIMAL HOUSE FEATURING WAYNE WONG INVENTOR OF THE WONGBANGER A MIDRACE SOMERSAULT WITH POLES PLANTED IN THE SNOW AND A MAD VERMONTER WHO SKIED ON A PAIR OF TWOBYFOURS THE TOURNAMENT QUICKLY TURNED INTO A WILDLY POPULAR ROAD SHOW BEFORE LONG THERE WERE HEFTY PRIZES TV CAMERAS AND NEW SUPERSTARS LIKE AIRBORNE EDDIE FERGUSON WHO DECLARED IF MANKIND WERE NOT MEANT TO FLY GOD WOULD HAVE GIVEN US ROOTS AND JOHN EAVES WHO WENT ON TO BECOME ROGER MOORE'S SKI DOUBLE IN THE JAMES BOND MOVIES THAT'S HIM SKIING DOWN THE BOBSLED RUN IN FOR YOUR EYES ONLY THE YOUNG FLIPPERS DRANK IT IN OFTEN LITERALLY ONE OF THE CIRCUIT'S STARS JOHN CLENDENIN ATTAINED RENOWN WHEN A ROLLING STONE WRITER CALLED HIM THE BEST ARGUMENT I KNOW FOR EXCESS FOR SELFINDULGENCE FOR SELFABUSE FOR DRUGABUSE FOR SEXUAL DEPRAVITY FOR IRRESPONSIBILITY AND ALL ATTENDANT RISKS AND COSTS HOLLYWOOD CAPTURED A MILDLY SANITIZED VERSION OF THE SCENE IN THE MGM TRASH CLASSIC HOT DOG THE MOVIE IT'S THE STORY OF A PLUCKY IDAHO FARMBOY WHO SEEKS HIS FORTUNE AT THE SQUAW VALLEY HOTDOG CHAMPIONSHIP AND FINDS HAPPINESS IN A HEARTSHAPED WATERBED WITH PLAYMATE OF THE YEAR SHANNON TWEED THE PARTY CAME CRASHING TO AN END IN THE MID70S WHEN THREE HOTDOGS PLUNGED ONTO THEIR FACES AND BROKE THEIR BACKS THE ACCIDENTS GAVE SKI RESORTS AND THEIR INSURERS THE JITTERS AND MANY MOVED TO BAN AERIAL SKIING SEVERAL SKIERS QUIT THE CIRCUIT AND MANY OTHERS STARTED SQUABBLING ABOUT MONEY WITH SPONSORS BY THE LATE '70S THE FLIPPERS HAD BECOME FLOPS THEIR SAVIOR WAS AN EARNEST CANADIAN AERIALIST NAMED JOHN JOHNSTON WHILE HIS SLOPEMATES WERE PARTYING HE DEVELOPED A PASSION FOR THE WORKINGS OF INTERNATIONAL SPORTS FEDERATIONS ONE SUMMER HE HOLED UP IN MONTREAL DRAFTED A THICK RULEBOOK AND BEGAN LOBBYING SKI AUTHORITIES TO MAKE AERIAL SKIING A SANCTIONED AMATEUR SPORT IT WAS AN UPHILL SLOG BUT THE INTERNATIONAL SKI FEDERATION FINALLY RECOGNIZED AERIAL SKIING IN 1979 ONE DECISIVE REASON WAS A STRICT NEW ROSTER OF SAFETY RULES INCLUDING GUIDELINES FOR CONSTRUCTING JUMPS AND PREPARING THE LANDING AREA SANCTIONED SAFE AND SERIOUS THE FLIPPERS ARE STILL THE FUNKIEST OLYMPIANS IN LILLEHAMMER ONE TOP MEDAL ASPIRANT PHILIPPE LAROCHE OF CANADA MOONLIGHTS AS A GUITARIST FOR A ZZ TOP COVER BAND HIS STAR TEAMMATE LLOYD LANGLOIS WHO STUDIED FLIPPING IN A QUEBEC GRAVEYARD REASONING THAT IF HE KILLED HIMSELF HE'D BE IN A CONVENIENT PLACE IS THE COMPOSER OF WAITING FOR TOMORROW AND 60 OTHER WOULDBE HIT POP TUNES AND WHEN THE COMPETITION GETS UNDER WAY IN ACCORDANCE WITH PROUD AERIALSKIING TRADITION LOUD MUSIC WILL BLARE ACROSS THE KANTHAUGEN ARENA THE FLIPPERS WILL BE PRAYING FOR A WINDLESS DAY AND A NONDWEEBY TUNE ON THE SPEAKERS THE SPORT IS SO OUTRAGEOUS AND WILD AND FUN IT'S HARD TO GET PSYCHED IF THEY'RE PLAYING SOME SAPPY PAUL SIMON SONG SAYS FUZZY FEDDERSEN HE ADDS HASTILY I HAVE NOTHING AGAINST PAUL SIMON BUT IT HAS A TIME AND PLACE AND WHEN YOU'RE DOING AERIALS THAT ISN'T THE TIME AND PLACE 9402160060 940216 LETTERS TO THE EDITOR NEW BUSINESSES STIFLED BY LACK OF BANK CREDIT YOUR JAN 24 ARTICLE GETTING CREDIT WHERE CREDIT IS DUE TOUCHES A PROBLEM WE RECENTLY SET UP A MERCHANT ACCOUNT OUR FINDINGS SUGGEST THAT HUNDREDS OF NEW BUSINESSES STALL BECAUSE OF THE UNMET FUNDAMENTAL NEED TO ACCEPT CREDITCARD PAYMENT BY PHONE IN SPITE OF OUR WILLINGNESS TO PROVIDE A COLLATERAL ACCOUNT REMOVING ALL RISK TO THE BANK WE WERE REQUIRED TO FIND A DIFFERENT SERVICE IT BOTHERS US THAT ONE OF THE TWO ALTERNATIVE SERVICES IN OUR AREA WAS RECENTLY PURCHASED BY A SUBSIDIARY OF A BANK THEY ARE NO LONGER ACCEPTING NEW ACCOUNTS OBTAINING A MERCHANTSERVICES ACCOUNT THROUGH A BANK WAS A SIMPLE MATTER 10 YEARS AGO NO AMOUNT OF RATIONALIZATION CAN EXPLAIN WHY THIS SHOULD NOT BE THE CASE TODAY 9402160059 940216 LETTERS TO THE EDITOR PROSTATE CANCER TESTS DON'T WAIT TOO LONG CONCERNING YOUR JAN 27 ARTICLE PROSTATECANCER STUDY SUPPORTS GOSLOW TACTICS I HAD THE RADICAL PROSTATECTOMY SURGERY LAST NOVEMBER AT MD ANDERSON CANCER AND TUMOR HOSPITAL HERE IN HOUSTON MY PROSTATE CANCER RANKED 7 ON THE GLEASON SCORE WITH 10 BEING THE MOST AGGRESSIVE THIS CANCER WAS DISCOVERED VIA THE PSA TEST 64 AND THE DIGITAL TEST THEN IT WAS LOCATED BY ULTRASOUND AND A BIOPSY WAS DONE FOR THE NEXT MONTH I UNDERWENT TESTS TO SEE IF THE CANCER HAD METASTASIZED TO OTHER PARTS OF MY BODY I THANK THE LORD THAT IN MY CASE IT HAD NOT IF I HAD NOT DISCOVERED THE CANCER AND HAD IT REMOVED I SURELY WOULD HAVE DIED WITHIN THE NEXT FEW YEARS JUST AS BILL BIXBY AND FRANK ZAPPA DID THIS DISEASE IS RAMPANT IN THE US IN MEN AND WITH THE TESTING PROCEDURES AVAILABLE THERE IS NO REASON TO DIE OF IT THERE ARE DIFFERENT LEVELS OF CARE DEPENDING ON THE AGGRESSIVENESS OF THE CANCER AND THE AGE OF THE PATIENT BUT TO DO NOTHING IS LIKE SITTING IN A LEAKING BOAT IN THE MIDDLE OF THE OCEAN WITHOUT A LIFE VEST MAYBE YOU WON'T DROWN BUT CHANCES ARE YOU WILL THE DOCTOR REFERRED TO MY CANCER AS AN ANGRY TUMOR SO THE INCONTINENCE WHICH LASTS ONLY FROM THREE TO SEVEN MONTHS IN MOST CASES AND IMPOTENCE THERE ARE DEVICES THAT OVERCOME THIS WERE OF NO CONSEQUENCE WHEN CONSIDERING LIFE OR DEATH THE FIGURE OF 38000 MEN EXPECTED TO DIE THIS YEAR OF PROSTATE CANCER SHOULD TELL ANYONE THIS IS NOTHING TO PROCRASTINATE OVER 9402160057 940216 BUSINESS BRIEF SINGER CO VIETNAM GIVES GREEN LIGHT FOR PLANT TO BEGIN OPERATING SINGER CO SAID IT RECEIVED PERMISSION FROM VIETNAMESE AUTHORITIES TO BEGIN OPERATIONS AT ITS SEWING MACHINE JOINT VENTURE OPERATION IN HO CHI MINH CITY SINGER SAID THE FACILITY WHICH WILL HAVE A PRODUCTION CAPACITY OF 250000 SEWING MACHINES A YEAR ALSO WILL ASSEMBLE CONSUMER DURABLE PRODUCTS SUCH AS TELEVISIONS AND REFRIGERATORS SINGER WILL HAVE A CONTROLLING STAKE IN THE VENTURE AND WILL PROVIDE MANUFACTURING TECHNOLOGY AND MANAGEMENT THE CONSUMER PRODUCT MANUFACTURING AND DISTRIBUTION CONCERN SAID IT ALSO PLANS TO ESTABLISH A WHOLLY OWNED RETAIL DISTRIBUTION NETWORK IN VIETNAM WITH ITS FIRST STORE OPENING IN THE NEXT FEW MONTHS IT SAYS IT SEES A NETWORK OF ABOUT 100 STORES WITHIN THE NEXT THREE TO FOUR YEARS SINGER DECLINED TO DISCLOSE THE VALUE OF ITS INVESTMENT IN THE MANUFACTURING AND RETAIL PROJECTS 9402160056 940216 INTERNATIONAL BRIEF KANSALLISOSAKEPANKKI OY LOSS BEFORE TAXES NARROWED TO 4782 MILLION IN 1993 FINLAND'S KANSALLISOSAKEPANKKI OY BANKING GROUP SAID ITS PRETAX LOSS NARROWED TO 266 BILLION MARKKAA 4782 MILLION IN 1993 FROM 366 BILLION MARKKAA A YEAR EARLIER AND PREDICTED IT WOULD REMAIN IN THE RED IN 1994 REVENUE ROSE 21 TO 489 BILLION MARKKAA FROM 404 BILLION MARKKAA KOP ATTRIBUTED THE LOSS TO CONTINUED HIGH LEVELS OF WRITEOFFS ON LENDING SUCH WRITEOFFS AMOUNTED TO 291 BILLION MARKKAA IN THE YEAR DOWN 32 FROM 427 BILLION MARKKAA IN 1992 THE GROUP ALSO CHARGED 900 MILLION MARKKAA AGAINST EARNINGS AS A GENERAL PROVISION FOR POSSIBLE CREDIT LOSSES THE EXTRA PROVISION WAS MADE TO PREPARE FOR FUTURE RISKS FROM MAINLY DOMESTIC CORPORATE CUSTOMERS KOP SAID 9402160055 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY RESULTS BY TIMOTHY J CARROLL DIANN ROFFESTEINROTTER WON THE WOMEN'S SUPERGIANT SLALOM GIVING THE SURPRISING US A PERFECT RECORD OF TWO GOLD MEDALS IN THE TWO OLYMPIC ALPINE SKI RACES RUN SO FAR IN A SURPRISE SVETLANA GLADISCHEVA OF RUSSIA TOOK THE SILVER THE FIRST OLYMPIC ALPINE SKI MEDAL FOR HER COUNTRY OR ITS PREDECESSOR THE SOVIET UNION SINCE 1956 ISOLE KOSTNER OF ITALY WON THE BRONZE MS ROFFESTEINROTTER WHO SHARED THE 1992 OLYMPIC GIANT SLALOM SILVER MEDAL WITH AUSTRIA'S ANITA WACHTER WAS FIRST DOWN THE TWISTING COURSE AND FINISHED IN 1 MINUTE 2215 SECONDS KATJA SEIZINGER OF GERMANY CAUGHT AN EDGE TURNED BACKWARD AND SLID PAST A GATE SHE DID NOT FINISH LYUBOV EGOROVA OF RUSSIA WON THE GOLD MEDAL IN THE WOMEN'S FIVEKILOMETER CLASSICALSTYLE CROSSCOUNTRY RACE BEATING MANUELA DI CENTA OF ITALY BY 195 SECONDS MS EGOROVA THE CROSSCOUNTRY SKI QUEEN OF THE 1992 OLYMPICS WITH THREE GOLD AND TWO SILVER MEDALS CLOCKED 14 MINUTES 088 SECONDS AFTER LEADING MOST OF THE WAY IT WAS HER SECOND MEDAL OF THESE GAMES ON SUNDAY MS DI CENTA WON THE 15K FREESTYLE GOLD WHILE MS EGOROVA TOOK THE SILVER THE BRONZE WENT TO FINLAND'S MARJALIISA KIRVESNIEMI EKATERINA GORDEEVA AND SERGEI GRINKOV WON THE GOLD MEDAL IN PAIRS FIGURE SKATING BEATING FELLOW RUSSIANS NATALIA MISHKUTIENOK AND ARTUR DMITRIEV MS GORDEEVA AND MR GRINKOV THE 1988 GOLD MEDALISTS WHO RETURNED TO OLYMPIC COMPETITION FROM THE PRO RANKS DREW A PERFECT 60 FOR ARTISTIC IMPRESSION FROM THE RUSSIAN JUDGE DESPITE TWO MISTAKES BY MR GRINKOV ON JUMPS THE REST OF THEIR ARTISTIC IMPRESSION MARKS WERE 59S SKATING RIGHT BEFORE MS GORDEEVA AND MR GRINKOV MS MISHKUTIENOK AND MR DMITRIEV SKATED AN ALMOST FLAWLESS PROGRAM BUT THE MARKS FOR THE 1992 OLYMPIC CHAMPIONS RANGED FROM 56 TO 59 CANADA'S ISABELLE BRASSEUR AND LLOYD EISLER THE REIGNING WORLD CHAMPIONS TOOK THE BRONZE MEDAL MATCHING THE BRONZE THEY WON IN ALBERTVILLE GERDA WEISSENSTEINER OF ITALY TOOK THE FIRSTDAY LEAD IN THE WOMEN'S LUGE COMPETITION HER TWORUN TOTAL WAS 1 MINUTE 37630 SECONDS 0252 FASTER THAN 1992 BRONZE MEDALIST SUSI ERDMANN OF GERMANY ANDREA TAGWERKER OF AUSTRIA WAS THIRD AN ADDITIONAL 0236 BEHIND CAMMY MYLER OF THE US EIGHTH AFTER THE FIRST RUN HAD PROBLEMS ON HER SECOND SHE BOUNCED OFF ONE WALL AND HAD TO PUT A FOOT DOWN SHE FINISHED THE DAY 11TH THERE ARE TWO MORE RUNS TODAY DEFENDING CHAMPIONS DONNA WEINBRECHT OF THE US AND EDGAR GROSPIRON OF FRANCE ADVANCED TO THE OLYMPIC FINALS OF THE FREESTYLE SKIING MOGULS MS WEINBRECHT PLACED 6TH AMONG 16 QUALIFIERS IN THE WOMEN'S COMPETITION WHILE MR GROSPIRON WAS SECOND IN THE MEN'S ELIMINATION ROUND ALL QUALIFIERS START FROM SCRATCH IN THE FINALS SCHEDULED FOR TODAY AMERICAN LIZ MCINTYRE FINISHED WITH BOTH THE FASTEST TIME AND MOST POINTS NORWAY'S STINE LISE HATTESTAD THE ONLY PERSON TO BEAT MS WEINBRECHT IN WORLD CUP ACTION THIS SEASON PLACED SECOND IN MEN'S QUALIFYING JEANLUC BRASSARD OF CANADA WAS FIRST AHEAD OF MR GROSPIRON AND RUSSIA'S SERGEI CHOUPLETSOV THE US SCORED TWO LATE GOALS AGAIN TO GAIN A TIE THIS TIME A 33 DEADLOCK WITH THE SLOVAKIA TEAM THE US SCORED TWO LATE GOALS IN ITS FIRST GAME TO TIE THE FRENCH SLOVAKIA ALSO HAS TWO TIES CANADA BEAT FRANCE 31 TO GO TO 20 FRANCE IS 011 AND SWEDEN BEAT ITALY 41 TO GO TO 101 AND DROP ITALY TO 02 9402160054 940216 BUSINESS BRIEF WESTBRIDGE CAPITAL CORP INSURER REPORTS DOUBLING OF OPERATING PROFIT IN '93 WESTBRIDGE CAPITAL CORP FORT WORTH TEXAS MORE THAN DOUBLED ITS OPERATING PROFIT LAST YEAR THE COMPANY'S CHAIRMAN SAID MARTIN KANTOR CHAIRMAN FOR THE SUPPLEMENTAL HEALTH INSURER SAID THE COMPANY'S OPERATING EARNINGS LAST YEAR WERE 35 MILLION OR 78 CENTS A SHARE COMPARED WITH 18 MILLION OR 40 CENTS A SHARE IN 1992 REVENUE IN 1993 GREW ABOUT 20 TO 75 MILLION THE COMPANY WILL REPORT RESULTS TODAY WALL STREET VIEWS OPERATING EARNINGS AS MORE SIGNIFICANT FOR INSURANCE COMPANIES THAN NET INCOME BECAUSE NET INCLUDES CAPITAL GAINS AND ONETIME GAINS AND CHARGES A STRING OF ACQUISITIONS CONTRIBUTED TO THE GROWTH DURING THE PAST 17 MONTHS THE COMPANY HAS ACQUIRED THREE BLOCKS OF HEALTH INSURANCE BUSINESS FROM OTHER INSURERS AND AGREED TO ACQUIRE TWO OTHERS MR KANTOR SAID THE COMPANY HAS RETAINED OPPENHEIMER & CO TO HELP WITH FINANCING MR KANTOR SAYS HE IS UNDAUNTED BY THE PROSPECT OF HEALTHCARE REFORM HE SAID THE MARKET FOR SUPPLEMENTAL COVERAGE WILL STILL EXIST AFTER REFORM BECAUSE PLANS BEING DISCUSSED BY THE CLINTON ADMINISTRATION AND OTHERS ONLY OFFER A BASIC PACKAGE OF PRIMARY COVERAGE 9402160053 940216 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP ONLINE TECHNICAL SUPPORT TO BE OFFERED VIA PRODIGY COMPAQ COMPUTER CORP SAID IT WILL OFFER ONLINE TECHNICAL SUPPORT FOR USERS OF ITS COMPUTERS THROUGH PRODIGY A COMPUTER NETWORK BY SIGNING ON TO PRODIGY HOUSTONBASED COMPAQ TAPS INTO THE BOOMING ONLINE BULLETINBOARD BUSINESS AS A WAY TO KEEP PACE WITH CONSUMERS' INCREASED EXPECTATIONS FOR SERVICE A HOST OF OTHER COMPUTER COMPANIES HAVE ALSO SIGNED UP WITH AN ONLINE SERVICE SUCH AS PRODIGY AND COMPUSERVE FOR THAT PURPOSE SUCH SERVICES HELP COMPUTER COMPANIES MANAGE THE INFLUX OF SERVICE CALLS AND REDUCE THE COST OF PROVIDING TECHNICAL SUPPORT WITH THE RECORD NUMBER OF PRODUCTS WE HAVE OUT THERE THE NUMBER OF CALLS TO THE COMPANY HAVE INCREASED A COMPAQ SPOKESMAN SAID 9402160052 940216 BUSINESS BRIEF HYDROQUEBEC UTILITY APPLIES TO LIST NOTES ON LONDON PARIS EXCHANGES HYDROQUEBEC MONTREAL IS SEEKING ITS FIRST LISTING ON A EUROPEAN EXCHANGE SETTING UP A 1 BILLION MEDIUMTERM NOTE PROGRAM THAT WILL DIVERSIFY BORROWINGS FOR THE QUEBECOWNED UTILITY HYDROQUEBEC HAS APPLIED TO LIST NOTES WITH MATURITIES OF ONE MONTH OR MORE ON THE LONDON STOCK EXCHANGE AND PARIS BOURSE BORROWINGS MAY BE DONE IN ANY CURRENCY AGREED ON BY THE UTILITY AND THE PURCHASER A HYDROQUEBEC SPOKESWOMAN SAID THERE AREN'T IMMEDIATE PLANS TO DRAW ON THE PROGRAM AND HYDROQUEBEC WILL ISSUE EURONOTES AS MARKET CONDITIONS PERMIT HYDROQUEBEC HAS A 2 BILLION MEDIUMTERM NOTE PROGRAM IN THE US SET UP IN 1990 TOTAL DEBT OUTSTANDING AT HYDROQUEBEC IS 332 BILLION CANADIAN DOLLARS US2454 BILLION THE EURONOTES HAVE BEEN RATED SINGLEAPLUS BY STANDARD & POOR'S CORP AND SINGLEA1 BY MOODY'S INVESTORS SERVICE INC THE PROVINCE OF QUEBEC GUARANTEES HYDROQUEBEC BORROWINGS CITIBANK IS THE ISSUING AND PRINCIPALPAYMENT AGENT FOR THE PROGRAM 9402160051 940216 WHAT'S NEWS WORLDWIDE NORTH KOREA AGREED TO ALLOW INSPECTIONS OF ITS DECLARED NUCLEAR SITES PYONGYANG ENDED ITS YEARLONG REFUSAL TO PERMIT INSPECTIONS BY THE INTERNATIONAL ATOMIC ENERGY AGENCY OF SEVEN NUCLEAR PLANTS HOWEVER NORTH KOREA STILL IS BARRING INSPECTIONS OF TWO OTHER SITES SUSPECTED OF POSSIBLE USE IN A NUCLEARWEAPONS PROGRAM AS A RESULT THE NEW IAEA INSPECTIONS WHICH COULD START AS SOON AS NEXT WEEK WON'T RESOLVE A DEBATE OVER WHETHER THE NORTH KOREANS ARE DEVELOPING NUCLEAR WEAPONS PRESIDENT CLINTON HAD WARNED LAST WEEK THAT UN ECONOMIC SANCTIONS WERE ONE OPTION IF NORTH KOREA CONTINUED TO REFUSE TO COOPERATE ON INSPECTIONS THE NAVY'S TOP UNIFORMED OFFICER SAID HE WOULD RETIRE TWO MONTHS EARLY IN LATE APRIL ADM FRANK KELSO CHIEF OF NAVAL OPERATIONS SAID HE WANTED TO CLOSE THE BOOKS ON THE TAILHOOK SEXABUSE SCANDAL NOTING I CLEARLY HAVE BECOME THE LIGHTNING ROD FOR TAILHOOK A LIKELY SUCCESSOR IS ADM JEREMY MIKE BOORDA THE US INSISTED THERE WASN'T ANY CONFUSION OVER NATO'S ULTIMATUM ON BOSNIA AND WARNED THAT WEAPONS LEFT OPERATIONAL IN AN EXCLUSION ZONE AROUND SARAJEVO AFTER MIDNIGHT SUNDAY COULD TRIGGER AIR STRIKES MEANWHILE THE COMMANDER OF BOSNIAN SERB TROOPS RINGING THE CAPITAL DECLARED THAT HIS ARTILLERY WOULDN'T BE WITHDRAWN EXILED PRESIDENT ARISTIDE REJECTED A USBACKED PLAN FOR RESTORING DEMOCRACY IN HAITI SAYING THAT TO APPOINT A PRIME MINISTER NOW WOULD BE IRRESPONSIBLE UNDER THE PLAN A NEW PRIME MINISTER WOULD FORM A GOVERNMENT THAT COULD BEGIN A PROCESS LEADING TO ARISTIDE'S RETURN BUT THE PLAN SETS NO FIRM DATE FOR HIS RESTORATION TO POWER MEAT CONSUMPTION WAS IMPLICATED IN A NEW STUDY AS A POSSIBLE FACTOR IN PROSTATE CANCER RESEARCHERS SAID MEN WHO EAT RED MEAT AS A MAIN DISH FIVE TO SIX TIMES A WEEK WERE FOUND TO BE 25 TIMES MORE LIKELY TO HAVE PROSTATE CANCER THAN MEN WHO ATE RED MEAT LESS THAN ONCE A WEEK A PRIOR STUDY FOUND A SIMILAR LINK RELATIVELY AFFLUENT PARENTS ARE FAILING TO GET THEIR CHILDREN PROPERLY IMMUNIZED A STUDY OF 1500 JOHNSON & JOHNSON EMPLOYEES SHOWED THE PARENTS BLAMED THEIR INABILITY TO TAKE TIME OFF FROM WORK AND THE WAIT TO SEE A PHYSICIAN AS THE BIGGEST PROBLEMS IN GETTING THEIR CHILDREN VACCINATED THE ACLU FILED A COMPLAINT WITH THE DEPARTMENT OF EDUCATION ALLEGING THAT THE TEST USED TO AWARD NATIONAL MERIT SCHOLARSHIPS IS BIASED AGAINST GIRLS THE COMPLAINT FILED WITH THE DEPARTMENT'S CIVILRIGHTS OFFICE ASKS FOR A RULING AGAINST THE EDUCATIONAL TESTING SERVICE AND COLLEGE BOARD THE TEST'S SPONSORS AN ACCUSED SERIAL KILLER PLEADED GUILTY IN THE 1990 MURDERS OF FIVE COLLEGE STUDENTS IN FLORIDA DANNY HAROLD ROLLING 39 CHANGED HIS PLEA MOMENTS BEFORE JURY SELECTION WAS TO BEGIN IN HIS TRIAL IN GAINESVILLE FLA THE JUDGE SAID HE WOULD EMPANEL A JURY TO RECOMMEND THE DEATH PENALTY OR LIFE IN PRISON WITHOUT PAROLE FOR AT LEAST 25 YEARS SAN FRANCISCO HEALTH OFFICIALS REPORTED THAT THE ANNUAL TOLL OF NEW AIDS CASES HAS PEAKED IN THE CITY AND THEY SAID NEW CASES SHOULD DECLINE OVER THE NEXT SEVERAL YEARS BUT THE NATIONWIDE EPIDEMIC WHILE SLOWING FROM THE RAPID GROWTH RATE OF THE 1980S HAS YET TO PEAK FEDERAL OFFICIALS CAUTIONED RENO'S FORMER TOP AIDE BLASTED THE THREESTRIKESYOU'REOUT ANTICRIME BILL BACKED BY CLINTON CALLING IT A BAD IDEA JUST A DAY AFTER HE OFFICIALLY LEFT THE JUSTICE DEPARTMENT FORMER DEPUTY ATTORNEY GENERAL HEYMANN SAID THAT THE IDEA OF HOUSING AGED PRISONERS LONG AFTER THEIR CRIMECOMMITTING YEARS HAVE ENDED MAKES NO SENSE THE NATIONAL INSTITUTES OF HEALTH SAID IT IS STARTING A LARGESCALE CLINICAL TRIAL TO SEE IF JUVENILE DIABETES CAN BE PREVENTED THE GOVERNMENT IS SEEKING 830 VOLUNTEERS RELATED TO PEOPLE DIAGNOSED WITH INSULINDEPENDENT DIABETES THOSE CHOSEN FOR THE TRIAL WILL BE GIVEN INSULIN IN HOPES OF PREVENTING OR DELAYING THE ONSET OF THE DISEASE ISRAELI PLANES ATTACKED BASES OF IRANIANBACKED GUERRILLAS OPPOSED TO MIDEAST PEACE TALKS THE ASSAULTS CAME JUST HOURS BEFORE THE NEGOTIATIONS WERE DUE TO RESUME IN WASHINGTON SEPARATELY ISRAEL'S RABIN SAID HE WAS DISTRESSED AT WHAT HE CALLED SYRIAN OBSTINACY IN THE PEACE TALKS 9402160050 940216 BUSINESS BRIEF MARTIN MARIETTA CORP A 163 MILLION NAVY PACT GIVEN FOR WEAPONS SYSTEMS MARTIN MARIETTA CORP SAID IT WAS AWARDED A 163 MILLION CONTRACT FROM THE US NAVY TO SUPPLY THREE ADDITIONAL AEGIS WEAPONS SYSTEMS ON ARLEIGH BURKE CLASS DESTROYERS THE CONTRACT INCLUDES OPTIONS FOR THREE TO FIVE MORE SYSTEMS WHICH COULD TOTAL AS MUCH AS 266 MILLION THE DEFENSE CONTRACTOR SAID AS OF THE END OF 1993 29 SHIPS WITH AEGIS SYSTEMS HAD BEEN COMMISSIONED INTO NAVY SERVICE AEGIS IS A SHIPBOARD SYSTEM OF COMPUTERS SENSORS AND WEAPONS SYSTEMS THAT CAN DETECT TRACK AND ENGAGE HUNDREDS OF TARGETS SIMULTANEOUSLY MARTIN MARIETTA'S GOVERNMENT ELECTRONIC SYSTEMS IN MOORESTOWN NJ WILL PRODUCE THE SYSTEMS WHICH ARE EXPECTED TO BE DELIVERED BEGINNING IN 1997 9402160049 940216 BUSINESS BRIEF HOMESTAKE MINING CO PROFIT POSTED FOR 4TH PERIOD AFTER LOSS IN 1992 QUARTER HOMESTAKE MINING CO REPORTED NET INCOME FOR THE FOURTH QUARTER OF 129 MILLION OR NINE CENTS A SHARE COMPARED WITH A LOSS OF 274 MILLION OR 20 CENTS A SHARE FOR THE YEAR EARLIER THE SAN FRANCISCO COMPANY CITED SIGNIFICANTLY LOWER COSTS OF PRODUCTION LOWER EXPLORATION EXPENSES HIGHER GOLD PRODUCTION AND HIGHER GOLD SALES BUT FALLING OIL PRICES AND LACKLUSTER SULFUR PRICES CAUSED THE COMPANY TO WRITE DOWN ABOUT 128 MILLION OF ITS INTEREST IN THE ONCEBALLYHOOED MAIN PASS 299 SULFUR PROJECT REVENUE ROSE 18 TO 1847 MILLION FROM 156 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY HOMESTAKE STOCK FELL 375 CENTS OR 17 TO CLOSE AT 21625 A SHARE 9402160048 940216 MARKETING BRIEF MULTIMEDIA INC FIRM TO INVEST 150 MILLION TO UPGRADE CABLETV LINE MULTIMEDIA INC A MEDIA COMPANY BASED IN GREENVILLE SC SAID IT WILL INVEST 150 MILLION IN UPGRADING TECHNOLOGY FOR ITS CABLETELEVISION OPERATIONS THE INVESTMENT WILL COVER NEW FIBER LINES WHICH WILL ENABLE THE COMPANY TO BOOST THE NUMBER OF CHANNELS OFFERED AND INTERACTIVE BOXES TO OFFER SUBSCRIBERS MORE VIDEO SERVICES SUCH AS PROGRAMS ON DEMAND THE COMPANY SAID THE COMPANY ALSO SAID ITS LARGEST DAILY NEWSPAPERS IN GREENVILLE SC AND MONTGOMERY ALA ARE JOINING A GROUP WITH BELLSOUTH CORP AND COX ENTERPRISES INC TO MARKET CLASSIFIED AND PHONEBOOK ADVERTISING 9402160047 940216 BUSINESS BRIEF APPLIED MATERIALS INC FISCAL FIRSTQUARTER PROFIT TRIPLED AS SALES JUMPED 57 APPLIED MATERIALS INC BENEFITING FROM STRONG DEMAND FOR ITS COMPUTER CHIP MAKING EQUIPMENT SAID FISCAL FIRSTQUARTER PROFIT TRIPLED ON A 57 SURGE IN SALES NET INCOME FOR THE PERIOD ENDED JAN 30 WAS 444 MILLION OR 53 CENTS A SHARE AFTER A ONETIME GAIN FROM AN ACCOUNTING CHANGE OF 7 MILLION IN THE YEAREARLIER PERIOD NET WAS 147 MILLION OR 18 CENTS A SHARE SALES WERE 3404 MILLION UP FROM 2156 MILLION A YEAR EARLIER IN A STATEMENT JAMES C MORGAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE SANTA CLARA CALIF CONCERN SAID HIS CUSTOMERS ARE INVESTING HEAVILY IN SEMICONDUCTOR MANUFACTURING EQUIPMENT TO MEET A STRONG AND GROWING WORLDWIDE DEMAND FOR ADVANCED LOGIC MICROPROCESSOR AND MEMORY DEVICES MR MORGAN SAID HE EXPECTS THIS YEAR WILL BE ANOTHER SIGNIFICANT GROWTH YEAR BUT WARNED THAT WE DO EXPECT THE VERY HIGH CURRENT ORDER RATES TO MODERATE IN NASDAQ STOCK MARKET TRADING APPLIED MATERIALS CLOSED AT 4750 UP 125 9402160046 940216 ALDUS TO ACQUIRE COMPUMATION SEATTLE ALDUS CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE COMPUMATION INC A SUPPLIER OF COMPUTER NETWORKBASED PRINT AND IMAGE MANAGEMENT SYSTEMS FOR THE GRAPHICS INDUSTRY TERMS WEREN'T DISCLOSED COMPUMATION WILL BECOME PART OF ALDUS'S NEW ALDUS PREPRESS DIVISION WHICH WILL SERVE THE DESKTOP PUBLISHING MARKET AND DEVELOP CUSTOM PUBLISHING SOFTWARE 9402160045 940216 BUSINESS BRIEF US HOMECARE CORP SALE OR MERGER OF COMPANY AMONG OPTIONS CONSIDERED US HOMECARE CORP HARTSDALE NY SAID IT IS EXPLORING VARIOUS ALTERNATIVES INCLUDING THE POSSIBLE SALE OR MERGER OF THE COMPANY THE PROVIDER OF INHOME NURSING SERVICES AND INTRAVENOUS THERAPIES SAID IT HAS RETAINED INVESTMENT BANKING FIRM DONALDSON LUFKIN & JENRETTE SECURITIES CORP TO ASSIST IN THE STUDY THE COMPANY PROVIDES SERVICES TO 4000 PATIENTS WEEKLY MAINLY IN THE NEW YORK METROPOLITAN AND TRISTATE AREA IN NASDAQ STOCK MARKET TRADING THE STOCK CLOSED AT 4 UNCHANGED THE COMPANY HAS ABOUT EIGHT MILLION SHARES OUTSTANDING FOR THE NINE MONTHS ENDED SEPT 30 IT HAD A NET LOSS OF 29 MILLION OR 36 CENTS A SHARE ON REVENUE OF 696 MILLION 9402160044 940216 GE UNIT BUYS 2 SWEDISH FIRMS FAIRFIELD CONN GENERAL ELECTRIC CO'S FINANCIAL SUBSIDIARY SAID IT ACQUIRED TWO SWEDISH CONCERNS WITH ABOUT 379 MILLION IN ASSETS UNDER ITS PLANS TO EXPAND FINANCING OPERATIONS IN EUROPE THE COMPANIES ARE SUBSIDIARIES OF FINANS SKANDIC AB A WHOLLY OWNED UNIT OF SKANDINAVISKA ENSKILDA BANKEN BASED IN STOCKHOLM ONE OF THE SWEDISH UNITS IS A COMPUTERLEASING COMPANY AND THE OTHER OFFERS FINANCING PROGRAMS TO DEALERS OF OFFICE EQUIPMENT AND MICRO COMPUTERS GE CAPITAL THE STAMFORD CONN FINANCIAL SUBSIDIARY DIDN'T DISCLOSE TERMS OF THE ACQUISITION 9402160043 940216 BUSINESS BRIEF SIERRA ONLINE INC COMPANY TO RESTATE RESULTS UPWARD FOR TWO '93 PERIODS SIERRA ONLINE INC WILL RESTATE RESULTS UPWARD FOR THE THIRD AND FOURTH QUARTERS OF 1993 TO REFLECT A NEW WAY OF ACCOUNTING FOR ITS IMAGINATION NETWORK UNIT SIERRA BASED IN BELLEVUE WASH WILL NOW ACCOUNT FOR ONLY 58 OF THE UNIT'S RESULTS DOWN FROM 100 PREVIOUSLY THE CHANGE THE RESULT OF CONSULTATION WITH THE SECURITIES AND EXCHANGE COMMISSION REFLECTS SIERRA'S JULY 1993 SALE OF EQUITY STAKES IN THE UNIT APPARENTLY EQUAL TO 42 TO AMERICAN TELEPHONE & TELEGRAPH CO AND GENERAL ATLANTIC PARTNERS A NEW YORK INVESTMENT FIRM THE SIZE OF THE STAKE WASN'T DISCLOSED AT THE TIME BECAUSE THE UNIT POSTED LOSSES FOR THE QUARTERS BEING RESTATED ACCOUNTING FOR LESS OF ITS RESULTS WILL INCREASE SIERRA'S RESULTS OVERALL FOR THE PERIODS IT WAS UNCLEAR WHAT THE RESTATED RESULTS WILL BE THE MOVE COMES LESS THAN THREE WEEKS AFTER THE SOFTWARE COMPANY'S CHIEF FINANCIAL OFFICER RICHARD A GELHAUS RESIGNED 9402160042 940216 LAW LEGAL BEAT NEW TRADEMARK LAWS IN ASIA ARE LESS EFFECTIVE THAN FIRMS HOPED BY JUNDA WOO AND RICHARD BORSUK STAFF REPORTERS OF THE WALL STREET JOURNAL NEW TRADEMARK LAWS THROUGHOUT SOUTHEAST ASIA WHICH WERE SUPPOSED TO PUT THE BRAKES ON THE REGION'S THRIVING COUNTERFEITING INDUSTRY ARE LESS EFFECTIVE THAN MANY COMPANIES HAD HOPED CLOTHING MAKERS LEVI STRAUSS ASSOCIATES INC PIERRE CARDIN AND ALFRED DUNHILL OF LONDON INC ARE LEARNING THIS THE HARD WAY THROUGH LITIGATION WITH AN INDONESIAN COMPANY THAT HAS LAID CLAIM TO SOME OF THEIR MOST LUCRATIVE TRADEMARKS TRADEMARK LAWYERS SAY THE PROBLEM IN INDONESIA AND ELSEWHERE IN SOUTHEAST ASIA IS THAT THE REGION'S CULTURE AND COURTS CONTINUE TO BOLSTER THE COUNTERFEITING INDUSTRY BECAUSE OF ITS ECONOMIC STRENGTH IN THE AREA IT'S ONE THING TO HAVE A LAW ON THE BOOKS SAID STEVEN M WEINBERG A PHOENIX ATTORNEY AND AN EXECUTIVE EDITOR OF THE TRADEMARK REPORTER AN INDUSTRY NEWSLETTER IT'S ANOTHER THING TO HAVE CULTURAL VALUES AND VIEWS CHANGE IN ORDER TO ACCOMMODATE PARTICULARLY THE INTERESTS OF PEOPLE WHO ARE FROM OUTSIDE THE COUNTRY OR REGION SOME JUDGES FOR INSTANCE INTERPRET THE NEW LAWS IN WAYS THAT FAVOR THEIR COUNTRY'S ECONOMY MR WEINBERG SAID HE ADDED THAT THE TRADEMARKRIGHTS ENVIRONMENT HAS NONETHELESS IMPROVED SIGNIFICANTLY FOR FOREIGN COMPANIES FROM A DECADE AGO INDONESIA IS ONE OF AT LEAST EIGHT SOUTHEAST ASIAN NATIONS THAT BEEFED UP ANTIPIRACY LAWS AND POLICIES IN THE PAST YEAR BECAUSE OF PRESSURES BY THE US AND OTHER COUNTRIES PIRACY IN ASIA COST US COMPANIES AT LEAST 2 BILLION IN 1992 ACCORDING TO THE INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE A WASHINGTON LOBBYING GROUP THE NEW INDONESIAN LAW DID AWAY WITH THE COUNTRY'S PREVIOUS TRADEMARKAPPROVAL PROCESS UNDER WHICH THE FIRST COMPANY TO FILE FOR A TRADEMARK RECEIVED IT EVEN IF THE TRADEMARK ALREADY WAS USED ELSEWHERE BY ANOTHER COMPANY UNDER THAT OLD LAW ONE COMPANY PT MAKMUR PERKASA ABADI REGISTERED TRADEMARKS USED BY PIERRE CARDIN LEVI STRAUSS ALFRED DUNHILL AND OTHER MULTINATIONALS UNDER THE NEW LAW WHICH TOOK EFFECT IN APRIL COMPANIES MUST DEMONSTRATE THAT THEY'RE ENTITLED TO A TRADEMARK BEFORE THEY CAN RECEIVE IT HOWEVER PT MAKMUR ARGUES THAT IT STILL HOLDS ITS PREVIOUSLY REGISTERED TRADEMARKS TO BELTS AND HATS MADE BY PARISBASED PIERRE CARDIN AND ALSO THAT IT OWNS THE TRADEMARK LEVI'S ACCORDING TO JAMES B LUMENTA A JAKARTA LAWYER WHO REPRESENTS PIERRE CARDIN AND LEVI STRAUSS PT MAKMUR ALSO CONTENDS THAT IT OWNS THE TRADEMARK TO ALFRED DUNHILL'S LEATHER PRODUCTS IN THE US SUCH DISPUTES WOULD BE RESOLVED QUICKLY BECAUSE FOREIGN COMPANIES GENERALLY WIN TRADEMARK PROTECTION IF THEY'VE ALREADY REGISTERED THE MARK IN THEIR HOME COUNTRIES LEVI STRAUSS BASED IN SAN FRANCISCO ACTUALLY WON A JAKARTA COURT ORDER NULLIFYING PT MAKMUR'S RIGHT TO THE LEVI'S TRADEMARK BUT THE INDONESIAN TRADEMARK OFFICE SIMPLY IGNORED THE RULING A JUDGE IN THE SAME COURT SUBSEQUENTLY SUSPENDED THE CANCELLATION ORDER ALLOWING THE INDONESIAN COMPANY TO KEEP THE TRADEMARK ACCORDING TO MR LUMENTA MEANWHILE PT MAKMUR HAS SUED LEVI'S PIERRE CARDIN AND ALFRED DUNHILL FOR ALLEGEDLY VIOLATING THE INDONESIAN COMPANY'S TRADEMARKS IT'S AN OUTRAGE SAID BERNARD DANILLON A SPOKESMAN IN PARIS FOR DESIGNER PIERRE CARDIN WHO TRAVELED TO INDONESIA LAST YEAR TO SPEAK OUT ABOUT THE TRADEMARK PROBLEMS HE IS VERY UPSET MANY COMPANIES CONFRONTED WITH SUCH A PROBLEM BUY BACK THEIR TRADEMARKS FROM THE USURPING COMPANIES BUT WE DIDN'T WANT TO GET INTO THAT BECAUSE IT WOULD BE A NEVERENDING STORY SAID MICHAEL BLAKENEY ALFRED DUNHILL'S GENERAL MANAGER FOR TRADEMARKS NONE OF THE COMPANIES WERE ABLE TO PROVIDE AN ESTIMATE OF THEIR LOSSES FROM THE TRADEMARK DISPUTES NEITHER PT MAKMUR NOR ITS LAWYER COULD BE REACHED FOR COMMENT CORRUPTION AND BRIBERY WITHIN THE TRADEMARKENFORCEMENT SYSTEM ARE MAJOR REASONS THAT THE PROBLEMS PERSIST PEOPLE WANT MONEY SAID MR LUMENTA A PARTNER IN AMROOS LAW CONSULTANTS AS LONG AS THE MENTALITY DOESN'T CHANGE I DON'T THINK WE'LL GET VERY FAR ON ENFORCEMENT 9402160041 940216 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY TV HIGHLIGHTS BY TIMOTHY K SMITH AND LEE LESCAZE WITH GREG GUMBEL DEMURELY CONDUCTING CBS CONTINUES TO HIT SOME HIGH NOTES MONDAY NIGHT'S MINIDOCUMENTARY ON THE INJURY AND REHABILITATION OF AMERICAN MOGULS CHAMPION DONNA WEINBRECHT WAS AMAZING FOR THE SCOPE OF ITS VIDEO THE CAMERA FOLLOWED HER FOR MORE THAN A YEAR TO THE FAMOUS STEADMAN CLINIC IN COLORADO FOR KNEE SURGERY HOME TO NEW JERSEY FOR A PERIOD OF THOUGHTFUL HEALING AND ON TO TIGNES IN THE FRENCH ALPS FOR A TRIUMPHANT COMEBACK BEST OF ALL WAS WHAT DIDN'T GET SHOWN THE USUAL LURID SLOWMO OF HER INJURY CBS MAY HAVE BEEN JUSTIFIED IN PRETENDING NOT TO KNOW THE OUTCOME OF THE LUGE COMPETITION WHEN IT BROADCAST AN INTRODUCTORY SEGMENT RAISING HOPES FOR AMERICAN DUNCAN KENNEDY MR KENNEDY HAD ALREADY CRASHED AND BEEN ELIMINATED BUT STILL HE IS INTERESTING AND OBSCURE ON THE OTHER HAND THE EVENING COVERAGE OF DAN JANSEN'S FAILURE WAS A GROSS BREACH OF TASTE FROM BEGINNING TO END AS ALL THE WORLD KNEW THE SNAKEBITTEN SPEED SKATER HAD MISSED YET ANOTHER CHANCE AT A MEDAL MONDAY HIS LATEST PERSONAL DISASTER WAS CARRIED LIVE IN THE MORNING THE DECISION TO BROADCAST ED BRADLEY'S EVENING PROFILE IN COURAGE ALL ABOUT HOW HE AND HIS FAMILY WOULD BE CRUSHED BY ANOTHER FAILURE SIMPLY CONSTITUTED PILING ON WORSE THE REBROADCAST OF MR JANSEN'S RACE FEATURED SLOWMOTION INSTANT REPLAY OF HIS WIFE BREAKING INTO TEARS AND CONCLUDED WITH A CAMERAMAN CHASING MR JANSEN DOWN A HALLWAY WHILE A REPORTER HOLLERED PAINFUL QUESTIONS GEORG HACKL IS NOT A COMPLEX PERSON GIVE HIM A BEER GARDEN AND A LUGE AND HE'S HAPPY THUS DID CBS'S REPORTER SUM UP A BIOGRAPHY OF THE GERMAN CHAMPION WHO LIKES BEER THE SEGMENT MENTIONED IN PASSING THAT MR HACKL BUILT HIS OWN HOUSE FABRICATES HIS OWN SLEDS AND WINS OLYMPIC GOLD MEDALS BUT EVIDENTLY DIMWITTED CONDESCENSION IS STILL ACCEPTABLE WHEN IT'S DIRECTED AT ICE PEOPLE CBS'S MONDAY PRIMETIME BROADCAST DREW 218 OF THE NATION'S 942 MILLION TV HOUSEHOLDS ACCORDING TO AC NIELSEN CO THAT WAS 14 MORE THAN THE FIRST MONDAY NIGHT OF THE 1992 ALBERTVILLE GAMES AN ESTIMATED 65 MILLION PEOPLE WATCHED PART OR ALL OF THE COVERAGE GIVING CBS ITS HIGHESTRATED MONDAY SINCE NOV 2 1987 NBC DREW 106 OF VIEWERS IN PRIME TIME AND ABC HAD 84 LATE SHOW WITH DAVID LETTERMAN DREW 88 IN 30 MAJOR MARKETS ITS HIGHEST RATING SINCE THE FIRST TWO NIGHTS OF ITS PREMIERE WEEK AUG 3031 1993 THE BROADCAST FEATURED THE DEBUT OF THE SHOW'S OLYMPIC CORRESPONDENT DAVID'S MOTHER DOROTHY WHO INTERVIEWED HILLARY RODHAM CLINTON CBS IN PRIME TIME IS CLEANING UP IN THE RATINGS BUT THE GAMES ON THE MORNING SHOW AND ON POOR COUSIN TNT ARE PICTUREPOOR IN GENERAL THE MOST INTERESTING VIDEOTAPES ARE BEING SAVED FOR THE EVENINGS THAT LEAVES TNT WITH DAYOLD EVENTS PLUS LIVE AND TAPEDELAY HOCKEY THE DECISION LEAVES PAULA ZAHN AND HARRY SMITH WITH LITTLE TO DO BUT SAY GOOD MORNING TO EACH OTHER TRAVELERS IN CHINA ARE GETTING THEIR WINTER GAMES EXPOSURE TOO AIR CHINA SEEKING TO EMULATE OTHER AIRLINES IS OFFERING INFLIGHT VIDEOS OF THE OLYMPICS THE 1992 ALBERTVILLE OLYMPICS 9402160040 940216 BUSINESS BRIEF APPLE COMPUTER INC FIRM UNVEILS DIGITAL CAMERA THAT LINKS UP TO COMPUTERS APPLE COMPUTER INC INTRODUCED A DIGITAL COLOR CAMERA THAT CAN TAKE PICTURES AND DOWNLOAD THEM DIRECTLY TO APPLE COMPUTERS OR ANY COMPUTER THAT RUNS MICROSOFT CORP'S WINDOWS SOFTWARE PREVIOUS ELECTRONIC CAMERAS SUCH AS CANON USA INC'S XAPSHOT HAVE FLOPPED IN THE MARKETPLACE MOSTLY BECAUSE THE PICTURES WERE TOO FUZZY AND THE CAMERAS AND EQUIPMENT TO HOOK THEM UP TO COMPUTERS COST ROUGHLY 1000 AT A LIST PRICE OF 750 APPLE'S QUICKTAKE CAMERA ISN'T INEXPENSIVE BUT WILL LIKELY SELL FOR MUCH LESS ON THE STREET ALSO WHILE ITS PICTURES AREN'T AS CRISP AS REGULAR 35MM PHOTOGRAPHS THEY ARE PERFECT FOR REPRODUCTION IN NEWSPAPERS OR FOR USE IN MOCKUP COPIES OF PUBLICATIONS AN APPLE SPOKESWOMAN SAID SEPARATELY APPLE BASED IN CUPERTINO CALIF INTRODUCED A 630 COLOR INKJET PRINTER WITH A PRINT QUALITY OF 360 DOTS PER INCH COMPARED WITH THE STANDARD 300 DPI THE PRINTER IS SCHEDULED TO BE SHIPPED IN LATE MARCH 9402160039 940216 GOVPXTULLETT ACCORD NEW YORK US TREASURY SECURITIES PRICING SERVICE GOVPX SAID TULLETT & TOKYO SECURITIES INC WILL BE THE FIFTH INTERDEALER US GOVERNMENT SECURITIES BROKER TO PROVIDE IT WITH US TREASURY SECURITIES PRICE AND VOLUME DATA TULLETT & TOKYO A SUBSIDIARY OF LONDONBASED TULLETT & TOKYO FOREX INTERNATIONAL LTD JOINS GARBAN LTD HILLIARD FARBER & CO LIBERTY BROKERAGE INC AND RMJ SECURITIES CORP IN PROVIDING INFORMATION TO GOVPX 9402160038 940216 INTERNATIONAL BRIEF TELEFON AB LM ERICSSON PACTS SIGNED WITH CHINA COVER EQUIPMENT DELIVERY TELEFON AB LM ERICSSON A SWEDISH TELECOMMUNICATIONS COMPANY SIGNED A NUMBER OF CONTRACTS WITH LIAONING POST AND TELECOMMUNICATIONS ADMINISTRATION IN CHINA COVERING THE DELIVERY OF AXE SWITCHING EQUIPMENT THE TOTAL VALUE OF THE CONTRACTS IS 220 MILLION KRONOR 276 MILLION AND ALL EQUIPMENT WILL BE DELIVERED IN 1994 ERICSSON ALSO SIGNED A CONTRACT WITH THE POSTS & TELECOMMUNICATION CORP IN ZIMBABWE FOR DELIVERIES OF EQUIPMENT TO THE MIDLANDS DIGITALIZATION PROJECT ERICSSON VALUED THE ORDER AT 240 MILLION KRONOR IT COVERS TURNKEY SUPPLY AND INSTALLATION OF AN AXE SWITCHING SYSTEM AS WELL AS A TRANSMISSION SYSTEM FOR MICROWAVERADIO AND OPTICALFIBER EQUIPMENT 9402160037 940216 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN COMPETITION HEATS UP IN THE FASTGROWING TAXSOFTWARE BUSINESS MECA SOFTWARE AND CHIPSOFT STILL DOMINATE THE MARKET BUT FACE AGGRESSIVE MARKETING FROM SEVERAL RIVALS INCLUDING COMPUTER ASSOCIATES AND PARSONS TECHNOLOGY GROWING COMPETITION IS GOOD NEWS FOR SHOPPERS PRICES HAVE FALLEN SLIGHTLY FROM A YEAR AGO AND INDUSTRYWIDE REVENUE IN THE US AND CANADA FOR THE FIRST 11 MONTHS OF 1993 SURGED ABOUT 28 FROM 1992 SAYS THE SOFTWARE PUBLISHERS ASSOCIATION WITH MORE LOWCOST PERSONAL COMPUTERS BEING SOLD IT'S CLEAR MORE PEOPLE THIS YEAR ARE GOING TO DO THEIR TAXES USING TAX SOFTWARE THAN LAST YEAR SAYS KEN WASCH THE ASSOCIATION'S EXECUTIVE DIRECTOR DANIEL SCHLEY PRESIDENT OF MECA A UNIT OF H&R BLOCK INC AND PUBLISHER OF ANDREW TOBIAS'S TAXCUT PREDICTS THIS WILL BE A TREMENDOUS YEAR FOR TAXSOFTWARE SALES ENTHUSIASTS SAY SOFTWARE SAVES TIME AND AGGRAVATION BUT SOME BUYERS COMPLAIN SOFTWARE CAN BE TRICKY TO USE AND OFTEN IS OF LITTLE USE IN GRAY AREAS OR COMPLEX QUESTIONS SHOULD CONGRESS GRANT AMNESTY TO NANNYTAX OFFENDERS FOR THEIR PAST SINS THIS THORNY QUESTION TROUBLES LAWMAKERS AS THEY STRUGGLE TO REWRITE THE HEAVILY CRITICIZED AND WIDELY IGNORED LAW REQUIRING HOUSEHOLD EMPLOYERS TO PAY SOCIAL SECURITY TAXES ON HOUSEKEEPERS AND OTHER EMPLOYEES NOW ANYONE PAYING OVER 50 A QUARTER MUST PAY SOCIAL SECURITY TAXES AND FILE A FORM QUARTERLY EXPERTS PREDICT CONGRESS WILL RAISE THE THRESHOLD TO 1000 A YEAR OR HIGHER AND REQUIRE FILING ONLY ONCE A YEAR THE QUESTION OF GRANTING PARTIAL OR COMPLETE AMNESTY FOR PAST OMISSIONS IS HIGHLY COMPLEX SAYS CLINT STRETCH OF DELOITTE & TOUCHE ADVOCATES SAY WIPING THE SLATE CLEAN WOULD ENCOURAGE MORE PEOPLE TO START FILING BUT OTHERS INSIST AMNESTY WOULD BE UNFAIR TO HONEST TAXPAYERS WHO COMPLIED FOR YEARS AND TO WORKERS WHO WOULD LOSE BENEFITS THE HOUSE PASSED A BILL LAST YEAR LIFTING THE ANNUAL THRESHOLD TO 1800 AND MAKING IT RETROACTIVE ADJUSTED FOR INFLATION FILING BY PHONE THE IRS EXPANDS ITS PROGRAM TO SIX MORE STATES A FILEBYTELEPHONE SYSTEM TESTED IN OHIO FOR THE PAST TWO YEARS IS NOW ALSO AVAILABLE IN FLORIDA INDIANA KENTUCKY MICHIGAN SOUTH CAROLINA AND WEST VIRGINIA THE IRS EXPECTS TO RECEIVE OVER 550000 RETURNS BY PHONE THIS YEAR UP FROM 149000 LAST YEAR BUT THIS TELEFILE PROGRAM IS AVAILABLE ONLY TO SINGLE TAXPAYERS WHO WOULD OTHERWISE USE FORM 1040EZ WHICH MEANS TAXABLE INCOME UNDER 50000 AND NO DEPENDENTS ALSO FILERS MUST NOT HAVE ANY NAME OR ADDRESS CHANGES TO THEIR TAXPACKAGE LABEL FILERS DIAL A TOLLFREE NUMBER AND ENTER TAX DATA WITH A TOUCHTONE PHONE THE CALL TAKES ABOUT FIVE TO SEVEN MINUTES WHILE THE CALLER IS ON THE LINE THE IRS CALCULATES ADJUSTED GROSS INCOME THE TAX AND ANY REFUND OR TAX DUE MOST CALLERS THEN MAIL A SIGNED FORM 1040TEL WITH W2 FORMS ATTACHED IN SOUTHERN OHIO THOUGH THE IRS IS TESTING COMPLETELY PAPERLESS FILING WITH A VOICE SIGNATURE ATTESTING TO THE RETURN'S CORRECTNESS THUS THE ONLY THING TAXPAYERS THERE MAY NEED TO MAIL IS A PAYMENT CHECK WE LOVE COMPLEXITY AS TAXPAYERS STRUGGLE WITH THE NEW TAX LAW INVESTORS BUY SHARES OF H&R BLOCK THE BIG TAXRETURN PREPARER BLOCK'S STOCK NOW STANDS AT 45125 UP NEARLY 20 FROM LAST OCTOBER GOV MERRILL OF NEW HAMPSHIRE RECEIVES THE TOP RATING IN A REPORT CARD ISSUED BY THE CATO INSTITUTE A WASHINGTON THINK TANK ON GOVERNORS' TAX AND SPENDING POLICIES AT THE BOTTOM ACCORDING TO STEPHEN MOORE AND DEAN STANSEL OF THE FREEMARKET GROUP IS GOV WEICKER OF CONNECTICUT TAX DROPOUTS THE IRS RECEIVED 114925000 INDIVIDUAL TAX RETURNS DURING 1993 DOWN FROM 115774000 IN 1992 THAT WAS WELL BELOW THE 117 MILLION RETURNS OFFICIALS ONCE PROJECTED FOR 1993 ELECTRONIC FILING THE IRS EXPECTS MORE THAN 14 MILLION RETURNS TO BE FILED ELECTRONICALLY THIS YEAR TAXPAYERS IN 23 STATES NOW CAN FILE BOTH STATE AND FEDERAL RETURNS ELECTRONICALLY TO THE IRS WHICH THEN RELAYS THE STATE AGENCY THE DATA IT NEEDS HELPING YOUR SON BECOME A GOLF PRO MAY BE ADMIRABLE BUT IS IT DEDUCTIBLE SAUL H NOVA AN EXECUTIVE IN THE GARMENT BUSINESS AGREED TO SPONSOR HIS SON JEFF WHO HAD WON SOME AMATEUR EVENTS ON THE PRO GOLF TOUR THEY MADE IT OFFICIAL WITH A PROFESSIONAL GOLFER/SPONSOR AGREEMENT IN DECEMBER 1987 BUT COMPETITION PROVED TOUGH OVER SEVERAL YEARS JEFF SPENT ABOUT 60000 AND WON ONLY 155 THE FATHER FINALLY ENDED THE SPONSORSHIP BECAUSE OF THE COST THE IRS DISALLOWED THE DEDUCTIONS SAYING HE DIDN'T HAVE A PROFIT MOTIVE TAX COURT SPECIAL TRIAL JUDGE PETERSON SIDED WITH THE IRS THE JUDGE SAID MR NOVA DIDN'T PROVE THAT HE HAD ANALYZED THE PACT AS A PROFITSEEKING VENTURE INSTEAD THE JUDGE RULED THE FATHER DID IT TO GIVE HIS SON THE OPPORTUNITY TO MAKE A CAREER CHANGE AND BECOME A PROFESSIONAL GOLFER THE FATHER'S SUPPORT WAS NO DIFFERENT THAN THAT OF ANY PARENT WHO DECIDES TO FINANCIALLY HELP A CHILD WITH EDUCATIONAL EXPENSES OR WITH EXPENSES FOR OTHER CAREERSEEKING ENDEAVORS THE JUDGE SAID THE FATHER PLANS TO APPEAL SAYS HIS LAWYER JOSEPH THIBODEAU BRIEFS THE IRS SEEKS A FISCAL 1995 BUDGET OF 761 BILLION UP 35 FROM THE PRIOR YEAR'S AUTHORIZED AMOUNT FREEBIE NEW IRS PUBLICATION 950 OFFERS A PRIMER ON FEDERAL ESTATE AND GIFT TAXES CALL 8008293676 FOR A COPY 9402160036 940216 CALFED TO SELL OFF ASSETS TOTALING 800 MILLION LOS ANGELES CALIFORNIA FEDERAL BANK SAID IT WILL SELL 800 MILLION OF ASSETS INCLUDING BAD LOANS AND FORECLOSED REAL ESTATE RESULTING IN A 280 MILLION LOANLOSS PROVISION FOR THE FIRST QUARTER THE PROVISION WILL RESULT IN A FIRSTQUARTER LOSS RESULTS WILL BE ANNOUNCED IN LATE APRIL IN THE YEARAGO QUARTER THE TROUBLED THRIFT EARNED 105 MILLION OR 40 CENTS A SHARE CALFED IS DUMPING THE ASSETS IN AN ATTEMPT TO RAISE CAPITAL SO IT CAN PURSUE ITS HOLD AND FIX STRATEGY INSTEAD OF SELLING ITSELF TO BIDDER GOLDEN WEST FINANCIAL CORP OAKLAND CALIF LAST MONTH CALFED'S BOARD REJECTED A 630 MILLION BID FROM GOLDEN WEST SAYING CALFED IS NOT FOR SALE IF THE PLANNED ASSET SALES ARE SUCCESSFUL CALFED ESTIMATES THAT NONPERFORMING ASSETS WOULD DECLINE TO LESS THAN 2 OF TOTAL ASSETS AS OF DEC 31 1993 FROM 526 CURRENTLY AT LESS THAN 2 CALFED'S NONPERFORMING ASSETS RATIO WOULD RIVAL GOLDEN WEST'S 15 RATIO THE BEST IN THE INDUSTRY THE BANK WILL MAINTAIN ITS CAPITAL REQUIREMENTS BY RAISING 300 MILLION THROUGH A PREFERRED STOCK AND RIGHTS OFFERING WHICH WAS ANNOUNCED YESTERDAY HERB SANDLER GOLDEN WEST'S CHIEF EXECUTIVE OFFICER DECLINED TO COMMENT ON HOW CALFED'S WRITEDOWN WOULD AFFECT HIS INTEREST IN THE COMPANY 9402160035 940216 BUSINESS BRIEF REEBOK INTERNATIONAL LTD CHAIRMAN AND WIFE TO SELL SHARES REDUCE STAKE TO 17 REEBOK INTERNATIONAL LTD'S CHAIRMAN AND HIS WIFE EACH PLAN TO SELL TWO MILLION OF THEIR REEBOK SHARES REDUCING THEIR COMBINED STAKE TO 17 FROM 21 THEY PLAN TO SELL THREE MILLION SHARES IN A PUBLIC OFFERING AND REEBOK SAID IT PLANS TO PURCHASE AN ADDITIONAL ONE MILLION SHARES FROM THE FIREMANS SUBJECT TO APPROVAL BY A SPECIAL COMMITTEE OF REEBOK'S BOARD THAT WOULD REDUCE THE STOUGHTON MASS FOOTWEAR COMPANY'S SHARES OUTSTANDING TO 825 MILLION SHARES AFTER THE SALE CHAIRMAN PAUL FIREMAN WILL HOLD 79 MILLION SHARES OR A 95 STAKE AND HIS WIFE PHYLLIS 63 MILLION SHARES OR 74 REEBOK SHARES CLOSED AT 3375 UP 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THAT WOULD INDICATE THAT THE FIREMANS WILL RAISE 135 MILLION THROUGH THE SALE PAUL DUNCAN CHIEF FINANCIAL OFFICER SAID THE SALES WERE BEING MADE FOR PORTFOLIO DIVERSIFICATION 9402160034 940216 POLITICS & POLICY LOS ANGELES WON'T BID FOR '96 PARTY CONVENTIONS LOS ANGELES MAYOR RICHARD RIORDAN SAID LOS ANGELES WON'T BE BIDDING FOR THE 1996 DEMOCRATIC AND REPUBLICAN NATIONAL CONVENTIONS BECAUSE THE DEVASTATION FROM LAST MONTH'S EARTHQUAKE HAS STRAPPED THE CITY'S FINANCES GIVEN OUR FISCAL PRIORITY FOR THE RECOVERY OF ALL OF LOS ANGELES AND FOR MAKING THE CITY SAFE WE CANNOT GUARANTEE MILLIONS OF PUBLIC DOLLARS AS FEDERAL ELECTION COMMISSION RULES REQUIRE THE MAYOR SAID IN THE BID FOR THE DEMOCRATIC CONVENTION ALONE THE CITY WOULD HAVE BEEN REQUIRED TO GUARANTEE A MINIMUM OUTLAY OF 225 MILLION TO CONVERT THE LOS ANGELES CONVENTION CENTER INTO AN ARENA THAT BID WAS TO HAVE BEEN SUBMITTED BY THE END OF THIS MONTH LOS ANGELES SITE OF THE 1960 PRESIDENTIAL NOMINATION OF JOHN F KENNEDY HAD BEEN CONSIDERED THE ODDSON FAVORITE FOR THE 1996 DEMOCRATIC CONVENTION BEFORE THE 68 TEMBLOR THE CITY HAD ANTICIPATED A BUDGET SHORTFALL OF NEARLY 200 MILLION FOR THE NEXT FISCAL YEAR WHICH BEGINS JULY 1 LOS ANGELES NOW FACES THE POTENTIAL LOSS OF MORE THAN 66 MILLION IN TAX REVENUE FROM BUSINESSES DAMAGED IN THE QUAKE ON TOP OF THE RECESSION THE EARTHQUAKE HAS ONLY DEEPENED OUR CITY'S FINANCIAL DIFFICULTIES MAYOR RIORDAN SAID 9402160033 940216 INTERNATIONAL JUDGE PLANS TO CHARGE EXCREDIT LYONNAIS OFFICER SPECIAL TO THE WALL STREET JOURNAL PARIS A SWISS INVESTIGATING JUDGE SAID HE PLANS TO CHARGE THE FORMER CHAIRMAN OF FRENCH STATEOWNED BANK CREDIT LYONNAIS SA JEANYVES HABERERM AND A CURRENT EXECUTIVE FRANCOIS GILLE IN CONNECTION WITH THE BANKRUPTCY OF SASEA HOLDING SA THE SWISS HOLDING COMPANY AN ATTORNEY FOR CREDIT LYONNAIS CONFIRMED HOWEVER THE ATTORNEY SAID THE SWISS JUDGE MUST FIND A CORRESPONDING FRENCH JUDGE TO SERVE THE TWO WITH THE CHARGES SINCE HE HAS NO JURISDICTION IN FRANCE DOMINIQUE PONCET OF PONCET TURRETTINI AMAUDRUZ & NEYROUD SAID IN A PHONE INTERVIEW FROM GENEVA THAT JUDGE JEAN LOUIS CROCHET WON'T ALLOW CREDIT LYONNAIS TO BECOME A PLAINTIFF IN THE AFFAIR AND INSTEAD WANTS TO CHARGE THE TWO MEN IN CONNECTION WITH WHAT HE CONSIDERS TO BE CREDIT LYONNAIS'S ROLE IN THE BANKRUPTCY OF SASEA MR PONCET SAID THE JUDGE HAS AN IDEA THAT CREDIT LYONNAIS WHICH HAD A TOTAL OF 476 BILLION FRENCH FRANCS 8113 MILLION OF EXPOSURE TO SASEA AND ITS AFFILIATES WAS A DE FACTO MANAGER OF SASEA A CHARGE CREDIT LYONNAIS CONTESTS CREDIT LYONNAIS HAS SAID IT CONSIDERS ITSELF A VICTIM OF FRAUD IN THE TANGLED TALE OF SASEA SASEA'S FORMER CHAIRMAN FLORIO FIORINI WHO IS IN JAIL IN SWITZERLAND WAS A PARTNER OF GIANCARLO PARRETTI THE ITALIAN WAITERTURNEDFINANCIER WHO SOUGHT TO TAKE OVER HOLLYWOOD STUDIO METRO GOLDWYN MAYER WITH THE HELP OF LOANS FROM CREDIT LYONNAIS BANK NEDERLAND LOANS CREDIT LYONNAIS NOW CONTROLS THE STUDIO 9402160032 940216 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN COAL MINERS IN THE ARCTIC CITY OF VORKUTA RUSSIA ENDED A SIXDAY STRIKE AFTER PRIME MINISTER VIKTOR CHERNOMYRDIN ORDERED THE GOVERNMENT TO PAY BACK WAGES TO THE WORKERS IN THE STATERUN SECTOR BUT LABOR UNREST CONTINUED AS WORKERS IN DOZENS OF OTHER STATEOWNED INDUSTRIES ALSO HAVE GONE WITHOUT PAYCHECKS FROM THE CASHPINCHED GOVERNMENT MINERS IN A PACIFIC COAST PROVINCE BEGAN A STRIKE FOR BACK PAY AND TEACHERS NATIONWIDE PROTESTED FOR HIGHER EDUCATION FUNDING THE GOVERNMENT WHICH HAS REPEATEDLY CAVED IN TO VARIOUS GROUPS' DEMANDS YESTERDAY RESPONDED TO OUTRAGED VODKA PRODUCERS MR CHERNOMYRDIN ROLLED EXCISE DUTIES BACK TO 85 FROM 90 THE VODKA INDUSTRY HAD SAID THE INCREASE HAD FORCED THEM TO RAISE PRICES TO UNCOMPETITIVE LEVELS AND CAUSED TEMPORARY LAYOFFS IN AN UNCONFIRMED REPORT THE RUSSIAN INFORMATION AGENCY ALSO SAID THE GOVERNMENT WOULD TRIPLE TO 300 THE IMPORT DUTIES ON FOREIGN VODKA IMPORTED SMUGGLED AND HOMEMADE BRANDS ARE SAID TO HAVE CAPTURED AS MUCH AS HALF THE MARKET HUNGARY DEVALUED ITS FORINT CURRENCY 26 AGAINST A BASKET OF THE US DOLLAR AND GERMAN MARK IN AN EFFORT TO SHARPEN ITS EXPORT EDGE THE DOLLAR HAS APPRECIATED AGAINST OTHER EUROPEAN CURRENCIES AND THUS PULLED THE FORINT UP AGAINST THOSE UNITS IN HUNGARIAN EXPORT MARKETS THE MOVE TO IMPROVE HUNGARIAN EXPORTERS' EARNINGS ALSO IS INTENDED TO MAINTAIN THEIR EMPLOYMENT THE DEVALUATION WAS THE SECOND THIS YEAR THE FORINT WAS DEVALUED 1 ON JAN 1 LAST YEAR THE CURRENCY WAS DEVALUED 15 IN FIVE STEPS ABOUT 30000 WORKERS IN BELARUS HELD A ONEDAY STRIKE TO BACK THE POLITICAL OPPOSITION'S DEMANDS FOR THE GOVERNMENT'S RESIGNATION AND PARLIAMENTARY ELECTIONS IN MINSK THE CAPITAL SEVERAL THOUSAND DEMONSTRATORS THREATENED A GENERAL STRIKE NEXT WEEK UNLESS THEIR DEMANDS ARE MET THE MINSK PROTEST WAS BACKED BY WORKERS IN SEVERAL OTHER CITIES IN THE FORMER SOVIET REPUBLIC LABOR UNIONS AND OPPOSITION PARTIES CHARGE THAT THE GOVERNMENT IS CORRUPT FAVORS COMMUNISM AND OPPOSES POLITICAL AND FREEMARKET REFORMS THEY WANT A COALITION GOVERNMENT AND MULTIPARTY ELECTIONS IN THE NATION OF 10 MILLION PEOPLE CHINESE AUTHORITIES RELEASED THREE US CITIZENS WHO WERE DETAINED FIVE DAYS WITH SEVEN OTHER PEOPLE APPARENTLY UNDER NEW DECREES BARRING FOREIGNERS FROM MANY RELIGIOUS ACTIVITIES THE GROUP WHICH HAD PLANNED TO MEET CHRISTIANS IN RURAL AREAS WAS HELD AT A HOME IN HENAN PROVINCE LAST WEEK ACCORDING TO CHRISTIAN SOLIDARITY INTERNATIONAL AND AMNESTY INTERNATIONAL CHINA'S CONSTITUTION GRANTS FREEDOM OF RELIGION BUT PROSELYTIZING IS PROHIBITED CHINA THIS MONTH UNVEILED RULES FORBIDDING FOREIGNERS FROM OTHER RELIGIOUS ACTIVITIES SUCH AS FORMING SCHOOLS OR ORGANIZATIONS TWO MILLION PEOPLE IN INDIA ARE INFECTED WITH HIV WHICH CAUSES AIDS AND ABOUT 100000 HAVE FULLBLOWN AIDS A SPECIALIST ON THE DISEASE SAID IS GILADA OF THE INDEPENDENT INDIAN HEALTH ORGANIZATION SAID THE OFFICIALLY REPORTED FIGURES OF 13254 HIV AND 459 AIDS CASES ARE FAR UNDERSTATED HE SAID AUTHORITIES IN INDIA THE WORLD'S SECOND MOST POPULOUS COUNTRY HAVE INSUFFICIENTLY PUBLICIZED PREVENTION OR PERILS OF HIV INFECTION HE SAID THAT IF THE CURRENT RATE OF THE VIRUS'S SPREAD IS UNCHECKED AIDS CASES IN INDIA COULD INCREASE TO BETWEEN THREE MILLION AND FIVE MILLION BY THE END OF THIS DECADE THE EUROPEAN EMPLOYERS FEDERATION UNICE WARNED OF POSSIBLE RETALIATION IF SOME PROPOSED FOREIGNINVESTMENT MEASURES BECOME LAW IN THE US UNICE IS MOST CONCERNED ABOUT A PROPOSAL TO RESTRICT FOREIGNOWNED BUSINESSES IN THE US FROM PARTICIPATING IN HIGHTECHNOLOGY PROGRAMS SPONSORED BY WASHINGTON UNICE SAID 32 OF THE US WORK FORCE IS EMPLOYED BY US AFFILIATES OF EUROPEAN COMPANIES ESTONIA PLANS TO INAUGURATE ITS VOUCHER SYSTEM OF PRIVATIZATION WITH DISTRIBUTION OF THE CERTIFICATES TO BEGIN IN JULY AND 50 MIDSIZE FIRMS TO BE SOLD OFF THIS YEAR A VOUCHER MANAGEMENT PROGRAM WILL BE SET UP THROUGH COMMERCIAL BANKS ESTONIANS WILL GET VOUCHERS BASED ON LENGTH OF EMPLOYMENT AND MAY EXCHANGE THEM FOR SHARES IN STATEOWNED COMPANIES DEEMED TO BE FINANCIALLY HEALTHY INCLUDING A BREWERY AND TOBACCO FIRM PUBLIC SALES OF STOCK ALSO WILL BE INTRODUCED SINCE 1991 AUCTIONS AND TENDER OFFERS HAVE BEEN USED TO PRIVATIZE ESTONIAN BUSINESSES THAT PROCESS HAS PUT MORE THAN 1000 SMALL FIRMS AND 54 LARGE ENTERPRISES IN PRIVATE HANDS ABOUT 80 OF SMALL STOREFRONT AND SERVICE BUSINESSES HAVE BEEN SOLD OFF PRIVATIZATIONS OF 75 LARGE BUSINESSES ARE SCHEDULED FOR THIS YEAR BUT A THIRD OF THEM COULD BE DECLARED BANKRUPT BECAUSE OF THEIR EXCESSIVE LIABILITIES NORTH KOREA OPENED A 40LANE BOWLING ALLEY IN PYONGYANG THE CAPITAL THE CASHSTRAPPED COMMUNIST STATE WHICH ACHES TO ATTRACT TOURISTS FOREIGN INVESTMENT AND TECHNOLOGY SAID THE ARMYBUILT COMPLEX WITH SAUNAS A RESTAURANT AND A SHOP IS AVAILABLE FOR INTERNATIONAL GAMES A STUDY BY DOCTORS AT BRISTOL UNIVERSITY IN ENGLAND SAID PATIENTS WITH ANXIETY AND DEPRESSION CAN BENEFIT FROM READING POETRY RATHER THAN TAKING MEDICINE SAVING THE BRITISH HEALTH SERVICE MONEY TOO 9402160031 940216 TEXAS JOURNAL LETTERS TO THE EDITOR BRIBING BUSINESS HOW MUCH LARGESS CAN TEXAS AFFORD AS YOUR ARTICLE CORRECTLY POINTS OUT JUST ABOUT EVERY BUSINESS RELOCATION OR EXPANSION IN THE STATE IS NOW ACCOMPANIED BY A BRIBE IN THE FORM OF TAX ABATEMENTS LOWINTEREST LOANS FREEPORT EXEMPTIONS AND THE LIKE BUT PROMISES OF NEW JOBS AND TAX REVENUES ARE ALWAYS EXAGGERATED AND THE TEXAS TAXPAYER WINDS UP FOOTING THE BILL MAYBE IT WILL TAKE A CLASSACTION LAWSUIT BY THOSE WHO ARE SUBSIDIZING THE RECIPIENTS TO STOP THE NONSENSE INSTEAD OF MISALLOCATING SCARCE FISCAL RESOURCES AND CONTINUING TO ERODE OUR TAX BASE WE SHOULD BE FOCUSING THE STATE'S ECONOMICDEVELOPMENT EFFORTS ON THE FACTORS THAT REALLY MATTER SUCH AS PUBLIC EDUCATION ADULT LITERACY PHYSICAL INFRASTRUCTURE REGULATORY REFORM AND BUSINESS RETENTION 9402160030 940216 REVIEW & OUTLOOK EDITORIAL ASIDES KELSO AND RENO ADMIRAL FRANK KELSO II THE NAVY'S TOP UNIFORMED OFFICER ANNOUNCED EARLY RETIREMENT YESTERDAY SEEKING TO CLOSE THE BOOK ON THE TAILHOOK SCANDAL IN WHICH NAVAL AVIATORS AT A PARTY ACTED LEWDLY AND AGGRESSIVELY WITH THE WOMEN PRESENT WHILE A MILITARY JUDGE CRITICIZED KELSO'S INVOLVEMENT WITH TAILHOOK ANOTHER REPORT BY THE SAME PENTAGON INVESTIGATOR WHO EARLIER HAD DETAILED THE SCANDAL CAUSING THE DISMISSAL OF SENIOR OFFICERS FOUND NO CREDIBLE EVIDENCE OF KELSO'S PERSONAL INVOLVEMENT STILL HE'S GONE LAST APRIL ATTORNEY GENERAL JANET RENO WAS ACCLAIMED A HERO FOR ASSUMING FULL RESPONSIBILITY FOR THE FEDERAL ASSAULT ON THE BRANCH DAVIDIAN COMPOUND IN WACO IN WHICH 25 CHILDREN AND SOME 50 ADULTS DIED A GOVERNMENT REPORT ABSOLVED MS RENO OF ANY WRONGDOING SHE STAYED ON TAILHOOK'S CRITICS WILL ARGUE THAT ROUGH JUSTICE OR NO ADMIRAL KELSO HAD IT COMING BUT IF THE SAME PEOPLE ALSO RATIONALIZE WHY OFFICIAL FAVORITES RESPONSIBLE FOR OTHER POLITICAL DISASTERS AREN'T SUBJECT TO THE KELSO STANDARD FOR EXILE THEN THEIR ROUGH JUSTICE MAY BREED MOSTLY PUBLIC CYNICISM 9402160029 940216 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR REMAINED FLAT AT 1115 IN THE LATEST WEEK AS BOTH INITIAL UNEMPLOYMENT CLAIMS AND TEXAS REFINERY OUTPUT SHOWED LITTLE CHANGE CONTINUING A RECENT TREND THE YEAROVERYEAR GROWTH RATE IN THE INDEX ROSE TO 30 FROM 294 IN THE PRIOR WEEK THAT BRINGS THE GROWTH RATE TO THE HIGHEST LEVEL SINCE THE MIDDLE OF DECEMBER 9402160028 940216 BUSINESS BRIEF XEROX CORP COMPANY TO BOOST PRICES OF MANY PRODUCTS 3 TO 7 XEROX CORP SAID IT WILL INCREASE ITS SERVICE AND SALES PRICES BY 3 TO 7 FOR MOST DOCUMENTPROCESSING PRODUCTS SALE PRICES FOR LOW AND MIDVOLUME COPIER PRODUCTS WHICH MAKE UP THE BULK OF XEROX'S COPIER REVENUE WILL BE RAISED BY 4 TO 6 EFFECTIVE APRIL 1 FOR ALL COMMERCIAL CUSTOMERS WHILE SALE PRICES FOR CERTAIN HIGHVOLUME PRODUCTS WILL BE RAISED 3 TO 7 THE COMPANY ALSO SAID THE PRICE OF ITS FULLSERVICE MAINTENANCE AGREEMENTS WILL BE RAISED ABOUT 3 XEROX OF STAMFORD CONN HAD LAST INCREASED THE PRICES ON THE MAJORITY OF ITS COPIER PRODUCTS BY 2 TO 5 LAST APRIL A SPOKESWOMAN NOTED THAT XEROX'S PRICE INCREASES WERE IN LINE WITH SIMILAR INCREASES BY COMPETITORS 9402160027 940216 ENTERPRISE FOCUS ON FRANCHISING FRANCHISEES TAKE COMPLAINTS AGAINST PEARLE TO FTC BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DISSIDENT FRANCHISEES SEEK MORE CONCESSIONS FROM PEARLE VISION AN ACTIVIST GROUP GOT NOWHERE IN DECEMBER WHEN IT SOUGHT A NEW ROUND OF ROYALTY CUTS AND OTHER CHANGES AT LOSSPLAGUED PEARLE VISION INC BASED IN DALLAS SO THE GROUP WROTE A COMPLAINT LAST MONTH TO THE FEDERAL TRADE COMMISSION HOPING TO PUT PRESSURE ON THE GRAND METROPOLITAN PLC UNIT PEARLE CALLED THE COMPLAINT AN ATTEMPT AT EXTORTION AND VOWS TO KEEP RESISTING THE ACTIVISTS PEARLE IS A TROUBLE SPOT FOR LONDONBASED GRAND MET WHOSE FRANCHISING OPERATIONS ALSO INCLUDE BURGER KING CORP AND HAAGENDAZS SHOPPE CO PEARLE'S SYSTEMWIDE SALES DECLINED TO 6101 MILLION IN THE FISCAL YEAR ENDED SEPT 30 1993 OFF 34 FROM THE PREVIOUS YEAR AND 12 FROM TWO YEARS EARLIER THE COMPANY HAS LOST MARKET SHARE TO US SHOE CORP'S PRECISION LENSCRAFTERS INC UNIT AND OTHERS NOW MANY PEARLE FRANCHISEES ARE IN FINANCIAL DISTRESS LARGELY BECAUSE OF THE FRANCHISER'S PRICESLASHING PROGRAMS CLAIMS THE VISION CARE FRANCHISEES ASSOCIATION OF CHICAGO THIS GROUP OF PEARLE FRANCHISEES SAYS ITS MEMBERS OWN 170 OF THE MORE THAN 400 FRANCHISED PEARLE UNITS IN THE US IF THE MARKET REQUIRES DEEP DISCOUNTING WE WANT THE FRANCHISER TO SHARE SOME OF THE PAIN SAYS ERIC H KARP THE GROUP'S BOSTON ATTORNEY PEARLE REFUSED TO NEGOTIATE WITH WHAT ITS NEW YORK LAWYER DAVID J KAUFMANN CALLS A RUMP GROUP VISION CARE FRANCHISEES THEN WROTE TO THE FTC ACCUSING PEARLE OF VIOLATING FEDERAL RULES GOVERNING DISCLOSURES TO PROSPECTIVE FRANCHISEES PEARLE DENIES VIOLATING THESE RULES AND THE FTC DECLINES TO COMMENT THE COMPANY WHICH REDUCED ROYALTIES IN 1992 ALSO INSISTS THAT THE CURRENT TERMS ARE FAIR AND EQUITABLE MR KAUFMANN SAYS MEANWHILE AILING PEARLE INC PEARLE VISION'S IMMEDIATE PARENT CLAIMS TO BE RECOVERING BUT THE AVAILABLE EVIDENCE IS CONFUSING AT BEST GRAND MET WHICH USES ACCOUNTING PRINCIPLES ACCEPTED IN BRITAIN HAS SAID THAT PEARLE'S OPERATING LOSS BEFORE EXCEPTIONAL REORGANIZATION CHARGES NARROWED TO 2 MILLION ALMOST 3 MILLION IN FISCAL 1993 FROM 33 MILLION A YEAR AGO IN THE US HOWEVER PEARLE INC IN FRANCHISING DOCUMENTS REPORTED A WIDER LOSS OF 915 MILLION FOR FISCAL 1993 COMPARED WITH THE 568 MILLION LOSS A YEAR EARLIER THE LATEST FIGURE INCLUDED A PRETAX TOTAL OPERATING LOSS OF 724 MILLION COMPARED WITH A 494 MILLION OPERATING LOSS A YEAR EARLIER THE US BALANCE SHEET SHOWS RESTRUCTURING AND STORECLOSING COSTS INCLUDED IN OPERATIONS OF 339 MILLION IN FISCAL 1993 AND 117 MILLION IN FISCAL 1992 A PEARLE SPOKESWOMAN INSISTS THAT DESPITE THE US ACCOUNTING TREATMENT OPERATIONS ACHIEVED APPROXIMATELY BREAKEVEN STATUS A NEW NEWSLETTER TRIES TO GIVE A STEAK CHAIN SOME EXTRA SIZZLE MANY FRANCHISERS DON'T EVEN KNOW WHO THEIR FRANCHISEES' CUSTOMERS ARE BUT RUTH U FERTEL INC THE NEW ORLEANS PARENT OF RUTH'S CHRIS STEAK HOUSE FRANCHISE INC IS TAKING STEPS TO REACH ITS CLIENTELE THE COMPANY HAS DISTRIBUTED 50000 COPIES OF STEAK HOUSE GANG NEWS A GLOSSY 16PAGE NEWSLETTER NOW THE COMPANY IS GATHERING NAMES 10000 SO FAR OF CUSTOMERS WHO WANT FREE COPIES OF FUTURE ISSUES BY MAIL THE INTENDED QUARTERLY IS AIMED AT REINFORCING CUSTOMER LOYALTY A PORTION OF FRANCHISEE ROYALTIES HELPS COVER THE COSTS THE FIRST ISSUE COVERS THE CHAIN'S OPERATIONS IN 38 CITIES DISCUSSES WINE VINTAGES AND DISCLOSES SOME RECIPES USED BY THE CHAIN IT EVEN INCLUDES AN EXPOSE OF WHAT IT SAYS IS A BOGUS RESTAURANTRATING LIST OSTENSIBLY IMPARTIAL BUT ALLEGEDLY UNDERWRITTEN BY ONE OF THE HIGHRATED RESTAURANTS OTHER ISSUES WILL CARRY PROFILES OF INDIVIDUAL CUSTOMERS WHO EAT IN THE CHAIN'S RESTAURANTS IN 10 OR MORE CITIES TACO BELL WHOSE PARENT PUSHES MEDIATION REJECTS IT FOR A BULLY SINCE MAY SOME 28 FRANCHISERS INCLUDING TACO BELL HAVE JOINED A DISPUTERESOLUTION PROGRAM AIMED AT AVOIDING LITIGATION WITH FRANCHISEES TACO BELL'S PARENT PEPSICO INC IS A PROMINENT SUPPORTER OF THE SOCALLED NATIONAL FRANCHISE MEDIATION PROGRAM A LAWYER AT PEPSICO'S PIZZA HUT UNIT HEADS THE STEERING COMMITTEE OF THE PROGRAM WHICH IS ADMINISTERED BY THE CENTER FOR PUBLIC RESOURCES NEW YORK BUT EVEN SUPPORTERS SAY MEDIATION HAS ITS LIMITS TACO BELL HAS REFUSED TO USE THE PROGRAM TO NEGOTIATE WITH ONE FRANCHISEE DARRELL DUNAFON HE SUED THE FRANCHISER IN NOVEMBER IN FEDERAL COURT IN JEFFERSON CITY MO MR DUNAFON WHOSE LAWYER REQUESTED THE MEDIATION IN JANUARY ALLEGES THAT TACO BELL IS DENYING HIM EXPANSION OPPORTUNITIES BECAUSE HE IS A LEADER OF A FRANCHISEE GROUP CRITICAL OF THE FRANCHISER TACO BELL BASED IN IRVINE CALIF DENIES WRONGDOING THERE IS A CERTAIN KIND OF SCHOOLYARD BULLY WHO PICKS A FIGHT LANDS THE FIRST PUNCH AND THEN RUNS FOR A TEACHER TO STOP THE FIGHT QUICKLY BEFORE ANYTHING ELSE CAN HAPPEN RICHARD A SMITH TACO BELL'S GENERAL COUNSEL TOLD THE CENTER FOR PUBLIC RESOURCES HE SAID THE FRANCHISEE HAD PASSED UP EARLIER OPPORTUNITIES TO REQUEST MEDIATION BUT THAT IS INSUFFICIENT CAUSE FOR REJECTING THE FRANCHISEE'S MEDIATION OVERTURES THE CENTER SAYS OFFICIALS SAY TACO BELL LAST YEAR AGREED TO A TWOYEAR TEST OF MANDATORY MEDIATION FOR ANY FRANCHISEE THAT REQUESTS IT WITH MINOR TECHNICAL EXCEPTIONS THE CENTER SAYS IT IS STILL TRYING TO PERSUADE TACO BELL TO ACCEPT MEDIATION IN THE CASE TACO BELL SAID IT HAD ACCEPTED FOUR OTHER MEDIATION REQUESTS BY FRANCHISEES AND REMAINS FIRMLY COMMITTED TO THE SPIRIT AND INTENT OF THE PROGRAM WHO NEEDS PROFITS OF EIGHT FRANCHISERS THAT RECENTLY WENT PUBLIC FIVE HAD LOSSES IN THE YEAR PRECEDING THEIR INITIAL PUBLIC OFFERINGS SAYS FRANDATA CORP A RESEARCH CONCERN IN WASHINGTON DC EVEN FASTGROWING BOSTON CHICKEN INC WHOSE STOCK ROCKETED ON THE FIRST DAY OF TRADING IN NOVEMBER HAD REPORTED A LOSS FOR 1992 THE COMPANY REPORTED A PROFIT FOR 1993 BRIEFS INCREASED INTEREST IN INTERNATIONAL FRANCHISING PROMPTS COMMERCE CLEARING HOUSE INC IN CHICAGO TO START A MONTHLY NEWSLETTER ON THE TOPIC AMERICA'S FAVORITE CHICKEN CO SAYS IT SIGNED AN AGREEMENT WITH TAIHAN SUGAR INDUSTRIAL CO'S HAIMARROW UNIT TO DEVELOP 115 NEW POPEYES CHICKEN & BISCUITS RESTAURANTS IN SOUTH KOREA DURING THE NEXT THREE YEARS 9402160026 940216 WHO'S NEWS WHITMAN CORP WHITMAN CORP CHICAGO LAWRENCE J PILON 45 YEARS OLD FORMERLY VICE PRESIDENT HUMAN RESOURCES AND SECRETARY OF NATIONAL INTERGROUP INC WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES OF THIS BOTTLER AND CONSUMER PRODUCTS AND SERVICES CONCERN HE SUCCEEDS THE LATE RONALD A WRIGHT 9402160025 940216 WHO'S NEWS CHOICE DRUG SYSTEMS INC CHOICE DRUG SYSTEMS INC INWOOD NY THIS PROVIDER OF PHARMACEUTICALS MEDICAL EQUIPMENT AND DISPOSABLE PRODUCTS INCREASED ITS BOARD TO EIGHT MEMBERS WITH THE ADDITION OF FOUR DIRECTORS JOSEPH L FALKSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CONTINENTAL HEALTHCARE CORP JOHN HARONIAN CHAIRMAN OF VISION WORLD INC EDWARD LEVY A DIRECTOR OF ARGOSY GROUP LIMITED PARTNERSHIP AND ROBERT MCGUIRE AN INDEPENDENT CONSULTANT WHO WAS SENIOR VICE PRESIDENT OPERATIONS AT A MCKESSON CORP UNIT 9402160024 940216 WHO'S NEWS FMC CORP FMC CORP CHICAGO PATRICIA A BUFFLER 55YEAROLD DEAN OF THE SCHOOL OF PUBLIC HEALTH OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY WAS ELECTED A DIRECTOR OF THIS PRODUCER OF CHEMICALS AND MACHINERY FOR INDUSTRY GOVERNMENT AND AGRICULTURE INCREASING BOARD MEMBERSHIP TO 13 9402160023 940216 WHO'S NEWS EVERGREEN BANCORP INC EVERGREEN BANCORP INC GLENS FALLS NY FRANCIS F CRANNELL 44 YEARS OLD WAS NAMED PRESIDENT OF THE EVERGREEN BANK UNIT OF THIS HOLDING COMPANY MR CRANNELL SUCCEEDS ANTHONY J KOENIG 55 WHO BECOMES EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THE PARENT MR CRANNELL WAS MOST RECENTLY SENIOR VICE PRESIDENT AND REGIONAL SENIOR LENDING OFFICER FOR FLEET BANK OF NEW YORK 9402160022 940216 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9402160021 940216 US COURT DISMISSES AIRLINES' CHALLENGE TO LANDINGFEE RISE LOS ANGELES A FEDERAL COURT HERE DISMISSED THE AIRLINE INDUSTRY'S CHALLENGE TO HIGHER LANDING FEES AT LOS ANGELES INTERNATIONAL AIRPORT THE COURT'S ACTION COMES ON THE HEELS OF THE US SUPREME COURT'S 71 RULING LAST MONTH REJECTING THE INDUSTRY'S CHALLENGE OF A SEPARATE LANDING FEES INCREASE AT KENT COUNTY INTERNATIONAL AIRPORT IN GRAND RAPIDS MICH THE JUSTICES STRESSED IN THAT RULING THAT THEY WOULD PREFER THE TRANSPORTATION DEPARTMENT RESOLVE SUCH DISPUTES LOS ANGELES OFFICIALS AND THE AIRLINES HAVE BEEN IN A STANDOFF SINCE JULY WHEN THE CITY TREBLED THE FEES TO 156 PER 1000 POUNDS OF MAXIMUM LANDING WEIGHT FROM 51 CENTS AN INCREASE TO ABOUT 900 FROM 300 FOR EACH BOEING 747 THE BATTLE REACHED A CRESCENDO IN SEPTEMBER WHEN THE CITY THREATENED TO START GROUNDING PLANES OF AIRLINES THAT HAD REFUSED TO PAY THE HIGHER FEES SOME 74 CARRIERS IN ALL AFTER THE FEDERAL TRANSPORTATION DEPARTMENT INTERVENED THE AIRLINES AGREED TO PAY THE HIGHER FEES UNDER PROTEST PENDING THE COURT'S RULING ON THEIR CASE JAMES LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION AN INDUSTRY TRADE GROUP THAT SUED THE CITY ON BEHALF OF THE NATION'S AIRLINES SAID JUDGE WALLACE TASHIMA'S DISMISSAL OF THE CASE IS EVIDENCE THAT THE AIRLINE INDUSTRY HAS LITTLE PROTECTION AGAINST THE MONOPOLY POWERS OF AIRPORTS FEDERAL LAW MUST BE CHANGED TO PROVIDE AIRLINES SOME LEGAL RECOURSE TO CHALLENGE QUESTIONABLE AIRPORT FEES AND CHARGES WHICH INEVITABLY ARE PASSED ON TO OUR CUSTOMERS MR LANDRY ADDED FROM THE OUTSET WE HAVE TOLD THE AIRLINES AND THE PUBLIC THAT THIS LAWSUIT WAS DOOMED TO FAILURE LOS ANGELES MAYOR RICHARD RIORDAN SAID THE RECENT DECISION BY THE US SUPREME COURT WHICH WE ANTICIPATED HAS VALIDATED OUR APPROACH AND OUR STRATEGIES THE AIRLINES ARE RUNNING OUT OF OPTIONS IN THEIR DESPERATE MANEUVERS TO PRESERVE THEIR SWEETHEART DEALS 9402160020 940216 WHO'S NEWS PERSEPTIVE BIOSYSTEMS INC PERSEPTIVE BIOSYSTEMS INC CAMBRIDGE MASS JOHN F SMITH 58 YEARS OLD WAS NAMED A DIRECTOR OF THIS BIOTECHNOLOGY CONCERN INCREASING BOARD MEMBERSHIP TO FIVE HE RETIRED AS CHIEF OPERATING OFFICER OF DIGITAL EQUIPMENT CORP LAST YEAR 9402160018 940216 TEXAS JOURNAL EDMUND PANKAU IS OUSTED FROM PROFESSIONAL GROUP BY LAURA JOHANNES HOUSTON PRIVATE INVESTIGATOR EDMUND J PANKAU WHO HAS CLAIMED A ROLE IN NUMEROUS HIGHPROFILE INVESTIGATIONS HAS BEEN KICKED OUT OF THE ASSOCIATION OF CERTIFIED FRAUD EXAMINERS A PROFESSIONAL ORGANIZATION FOR ALLEGEDLY VIOLATING ITS CODE OF ETHICS MR PANKAU THE SUBJECT OF A JAN 12 TEXAS JOURNAL ARTICLE COULDN'T BE REACHED FOR COMMENT BUT HIS ATTORNEY KEN NORMAN SAYS THE ORGANIZATION'S DECISION WAS UNFAIR BECAUSE MR PANKAU DID NOT HAVE AN OPPORTUNITY TO SIT DOWN AND CONFRONT HIS ACCUSERS IN A PRINTED STATEMENT THE AUSTINBASED PROFESSIONAL ORGANIZATION ACCUSES THE 48YEAROLD MR PANKAU OF BREACHING ITS CODE OF PROFESSIONAL ETHICS BY MAKING NUMEROUS CONFLICTING PUBLIC STATEMENTS ABOUT HIS ALLEGED ROLE IF ANY IN SEVERAL DIFFERENT INVESTIGATIONS THE GROUP DIDN'T SPECIFY WHICH INVESTIGATIONS MR PANKAU HAS GAINED A LARGERTHANLIFE REPUTATION BASED ON REPORTS OF HIS EXPLOITS HE CLAIMS FOR EXAMPLE THAT HIS FIRM VIDEOTAPED US SEN GARY HART WITH MODEL DONNA RICE AND SAYS HIS INVESTIGATORS TIPPED OFF THE MIAMI HERALD TO THE RELATIONSHIP WHICH THE NEWSPAPER DENIES MOREOVER ACCORDING TO PUBLISHED ACCOUNTS MR PANKAU HAS HELPED NAB A NOTORIOUS GANG OF JEWEL THIEVES AND RUSHED INTO A BURNING BUILDING TO SNATCH A COMPUTER PRINTOUT OF THE FINANCIAL HOLDINGS OF DEPOSED PANAMANIAN LEADER MANUEL NORIEGA MEANWHILE THE TEXAS BOARD OF PRIVATE INVESTIGATORS WHICH LICENSED MR PANKAU'S FIRM INTERTECT INC IN 1974 IS CHECKING INTO THE VERACITY OF DOCUMENTS SUBMITTED TO THE BOARD FOR HIS ORIGINAL LICENSE SAYS SPOKESMAN KEN NICOLAS ADDING THAT ACTION THAT COULD BE TAKEN AGAINST HIM RANGE FROM REPRIMAND TO REVOCATION OF THE LICENSE 9402160017 940216 ECONOMY INDUSTRIAL OUTPUT ROSE AT SLOWER RATE LAST MONTH DUE TO WEATHER EARTHQUAKE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INDUSTRIAL OUTPUT CONTINUED TO RISE LAST MONTH BUT AT A MUCH SLOWER PACE THAN AT THE END OF LAST YEAR THE GOVERNMENT BLAMED THE SLOWDOWN ON WINTRY WEATHER AND THE LOS ANGELES EARTHQUAKE THE FEDERAL RESERVE SAID INDUSTRIAL PRODUCTION INCREASED 05 IN JANUARY AFTER CLIMBING 09 IN DECEMBER AND 08 IN NOVEMBER WHILE THAT REPRESENTS A SIGNIFICANT SLOWING JANUARY'S GROWTH IS HARDLY ANYTHING TO SNEEZE AT IF OUTPUT WERE TO INCREASE AT THE SAME PACE IN EACH MONTH OF 1994 THE RISE FOR THE FULL YEAR WOULD EXCEED 6 MORE THAN THE 41 IT CLIMBED IN 1993 AND FAR MORE THAN MOST ECONOMISTS ANTICIPATE THE WEATHER DID HOWEVER CAUSE BIG SHIFTS IN THE MAKEUP OF PRODUCTION LAST MONTH SHIFTS THAT AREN'T LIKELY TO BE SUSTAINED AS MANY HOUSEHOLDS AND EMPLOYERS STRUGGLED TO STAY WARM FOR INSTANCE OUTPUT AT UTILITIES SURGED 35 COMPARED WITH A 09 RISE IN DECEMBER IN ADDITION MANY FACTORIES WERE FORCED TO CLOSE BECAUSE OF THE WEATHER AND THE EARTHQUAKE MANUFACTURING PRODUCTION ROSE ONLY 02 LAST MONTH COMPARED WITH AN AVERAGE MONTHLY GAIN OF 09 IN THE LAST QUARTER OF 1993 ANALYSTS SAID THEY EXPECT THE OUTPUT MIX TO TURN BACK AROUND IN COMING MONTHS AS MANUFACTURING ACTIVITY CONTINUES TO EXPAND AND THE WEATHER WARMS UP PRODUCTION OF BUSINESS EQUIPMENT LED BY COMPUTERS CONTINUED TO SURGE IN JANUARY DESPITE THE WEATHER CAPITAL INVESTMENT IS REALLY SUPPORTING THE WHOLE INDUSTRIAL GROUP SAID THOMAS RUNIEWICZ INDUSTRIAL ECONOMIST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA PRODUCTION OF CARS WAS ALSO UP AT A GOOD CLIP DURING JANUARY THOUGH NOT AS STRONG AS IN OTHER RECENT MONTHS BECAUSE OF THE BIG INCREASE IN DEMAND UTILITIES WERE USING 901 OF THEIR CAPACITY LAST MONTH UP FROM 871 IN DECEMBER CAPACITY UTILIZATION AT FACTORIES SLIPPED A BIT WHILE OVERALL INDUSTRY USE MOVED UP SLIGHTLY TO 831 FROM 829 SEPARATELY THE BUREAU OF LABOR STATISTICS SAID UPDATED SEASONALADJUSTMENT FACTORS FOR THE CONSUMER PRICE INDEX WILL LESSEN THE INDEX'S EARLIER TENDENCY TO SHOW LARGER CHANGES IN THE EARLY MONTHS OF THE YEAR AND SMALLER CHANGES LATER IN THE YEAR HOWEVER THE NEW FACTORS WHICH WERE APPLIED TO REVISED 1993 DATA RELEASED YESTERDAY STILL PRODUCE LARGER INCREASES IN THE BEGINNING OF THE YEAR THAN AT THE END THOUGH TO A LESSER EXTENT THE CHANGES DIDN'T AFFECT THE 27 OVERALL INCREASE IN CONSUMER PRICES FOR THE YEAR THE NEW FACTORS WILL BE USED IN THE JANUARY PRICE REPORT TO BE RELEASED TOMORROW AND FOR THE REMAINDER OF 1994 THE PRECEDING FIVE YEARS OF CONSUMER PRICE FIGURES ARE ALSO BEING REVISED FIGURES IN THE INDUSTRIAL PRODUCTION REPORT HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN JANUARY THE FIGURES ARE SEASONALLY ADJUSTED THE 1987 AVERAGE 9402160016 940216 MARKETING & MEDIA CBS REACHES ACCORD VALUED AT 60 MILLION FOR BIG EAST FOOTBALL CBS INC REACHED A FIVEYEAR AGREEMENT TO TELEVISE BIG EAST CONFERENCE FOOTBALL COMPLETING THE NETWORK'S SPLASHY REENTRY ONTO THE COLLEGE GRIDIRON THE ACCORD ESTIMATED TO BE WORTH 60 MILLION COMPLEMENTS A PREVIOUSLY ANNOUNCED FIVEYEAR 100 MILLION CONTRACT TO TELEVISE SOUTHEASTERN CONFERENCE FOOTBALL THOUGH THE CONFERENCES ARE REGIONAL IN NATURE THE BIG EAST PRIMARILY NORTHEASTERN AND THE SOUTHEASTERN CONFERENCE SOUTHERN THEY HAVE SCHOOLS WITH NATIONAL FOLLOWINGS WE THINK IT WILL WORK ON A NATIONAL BASIS AND WILL GET SUPPORT FROM THE ADVERTISING COMMUNITY SAID NEAL PILSON CBS SPORTS PRESIDENT CBS HAD A GLEAM IN OUR EYE FOR COLLEGE FOOTBALL EVER SINCE LOSING NATIONALTELEVISION RIGHTS TO IT IN 1990 ACCORDING TO MR PILSON CBS WHICH ALSO EXTENDED ITS BIG EAST BASKETBALL CONTRACT BY SIX YEARS WON'T START TELEVISING FOOTBALL UNTIL 1996 AFTER THE CURRENT COLLEGE FOOTBALL ASSOCIATION TV PACTS EXPIRE COMBINED WITH ANOTHER PACT REACHED THIS WEEK BETWEEN THE ATLANTIC COAST CONFERENCE AND SISTER NETWORKS ABC AND ESPN THE CONTRACTS MARK THE CFA'S DEMISE AS A TVFOOTBALL POWER THE ASSOCIATION HAD NEGOTIATED NETWORK TV CONTRACTS FOR 63 MEMBER SCHOOLS SINCE 1984 THE ACC WHICH GOT ABOUT 9 MILLION LAST YEAR FROM THE CFA PACKAGE WILL GET ABOUT 16 MILLION A YEAR FROM A COMBINATION OF ABC AND ESPN BOTH ARE UNITS OF CAPITAL CITIES/ABC INC ABC IS ALSO ANGLING FOR ANOTHER RIGHTS ACCORD WITH A COMBINATION OF THE SOUTHWEST AND BIG EIGHT CONFERENCES ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS IT IS BELIEVED TO BE LIKE THE ACC FOR 50 MILLION OVER FIVE YEARS DAVID DOWNS ABC SPORTS VICE PRESIDENT WOULDN'T CONFIRM THE TERMS 9402160014 940216 MARKETING & MEDIA HOLLINGER PLANS TO SELL UP TO 30 OF STAKE IN ITS UNIMEDIA UNIT VANCOUVER IN A BID TO BOOST THE VALUE OF ITS STOCK HOLLINGER INC THE PUBLISHING EMPIRE CONTROLLED BY CONRAD BLACK PLANS A PUBLIC SALE OF AS MUCH AS 30 OF ITS STAKE IN ITS UNIMEDIA INC UNIT HOLLINGER SAID IT COULD FOLLOW THE 40 MILLION CANADIAN DOLLAR US296 MILLION INITIAL PUBLIC OFFERING OF UNIMEDIA STOCK WITH THE SALE OF UP TO A THIRD OF ITS AMERICAN PUBLISHING CO UNIT THROUGH A SIMILAR TRANSACTION IN THE US IN A FEW MONTHS DAVID RADLER PRESIDENT AND CHIEF OPERATING OFFICER OF HOLLINGER SAID THE COMPANY'S MAIN PURPOSE IN THE UNIMEDIA SALE IS TO HELP INVESTORS PUT A REASONABLE VALUE ON HOLLINGER AND ITS ASSETS WE HAVE A NUMBER OF SUBSIDIARIES AND WE DON'T THINK THAT THEIR VALUE IS REFLECTED IN THE VALUE OF HOLLINGER SHARES MR RADLER SAID EVEN THE SALE OF PART OF HOLLINGER'S FLAGSHIP NEWSPAPER BRITAIN'S DAILY TELEGRAPH TO THE BRITISH PUBLIC AND OBTAINING A LISTING FOR THOSE SHARES HAS FAILED TO PROPEL HOLLINGER'S VALUE UPWARD IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY HOLLINGER SHARES CLOSED AT C14 A SHARE DOWN 50 CANADIAN CENTS ONCE THE UNIMEDIA ISSUE IS COMPLETED EXPECTED IN MIDMARCH THE COMPANY WILL HOLD NOT ONLY THE QUEBEC NEWSPAPERS THAT FORMED THE BASIS OF MR BLACK'S PUBLISHING EMPIRE BUT ALSO STERLING NEWSPAPERS LTD WHICH OWNS AND OPERATES A CHAIN OF NEWSPAPERS IN WESTERN CANADA HOLLINGER SAID IT WILL KEEP ITS MINORITY HOLDINGS IN SOUTHAM INC A TORONTOBASED PUBLISHING AND PRINTING CONCERN AND IN THE FINANCIAL POST NEWSPAPER BUT UNIMEDIA WILL BE HOLLINGER'S PREFERRED INVESTMENT COMPANY IN CANADA FOR FUTURE NEWSPAPER ACQUISITIONS