Julia Buys A Share Of Stock Through Her Brokerage Firm. What Are The Two Ways That Julia Could Make Money From Owning This Stock? (2023)

1. EPF Unit 7 What is a Stock (docx) - Course Sidekick

  • Jun 12, 2023 · Julia buys a share of stock through her brokerage firm. What are the two ways that Julia could make money from owning this stock? Through ...

  • Ace your courses with our free study and lecture notes, summaries, exam prep, and other resources

2. [PDF] Answers - SEC.gov

  • There are no guarantees of profits, or even that you will get your original investment back, but you might make money in two ways. First, the price of the stock ...

3. [PDF] chapter 14 - Anvari.Net

  • Missing: julia

4. - MUTUAL FUNDS: WHO'S LOOKING OUT FOR INVESTORS? - GovInfo

  • ... two or more classes of shares with different loads and other fee characteristics. We have brought enforcement actions against two brokerage firms and ...

5. Mortgage-Backed Securities (MBS) Definition: Types of Investment

  • Missing: her firm.

  • A mortgage-backed security (MBS) is an investment similar to a bond that consists of a bundle of home loans bought from the banks that issued them.

6. - ANALYZING THE ANALYSTS - GovInfo

  • What, for example, should an investor make of the disclosure that an analyst owns shares of stock that he recommends? ... When I was a brokerage firm analyst, I ...

7. [PDF] Answers to Selected Problems - CSUN

  • Missing: julia owning

8. [PDF] Mutual Fund Retailing: ASPECTS OF MARKET STRUCTURE AND ...

  • Only two broker-dealers presently make trading markets in mutual fund shares. ... The firm's business is primarily in New York Stock Exchange brokerage and for ...

9. Investing Unit - Next Gen Personal Finance

  • Explain what stocks are and how they can make money from investing in them; Identify ways to minimize risk when investing in stocks; Read a stock quote and ...

  • Your students can learn to invest with free Investing Lessons, Games and more. Try teacher favorites INTERACTIVE: Invest With Stax and Start Investing Grades 9-12.

10. [PDF] YOUNG MONEY - Kemba Credit Union

  • dream that might lead to her owning an adoption agency where she could offer ... stocks and bonds through a broker on a major stock exchange.” xxv. According ...

11. [PDF] Strategic management: concepts and cases

  • ... two new tables in the chapters to better capture key strategic-management ... firm's objectives in written form or simply communicated orally? 3. To what ...

12. [PDF] From Lily Bart to the Boom Boom Room : How Wall Street's Social ...

  • him, he could make a handsome sum of money for her without endangering the ... urged her to sell the stock she owned and buy shares of another company ...

13. Investing: What's New and What's Not | By PBS Books - Facebook

  • Duration: 59:23Posted: Apr 23, 2021

  • See posts, photos and more on Facebook.

14. https://isip.piconepress.com/courses/msstate/ece_8...

  • ... BROKERAGE IN CHICAGO THE GULF WAR CREATED A LOT OF INTEREST IN COMMODITIES ... TWO MORE SOON ACCORDING TO PEOPLE FAMILIAR WITH THOSE TALKS THOSE JETS ARE ...

  • KNOXVILLE TENN A PARTNERSHIP OWNED BY JAMES L CLAYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CLAYTON HOMES INC AND HIS MOTHER RUTH CLAYTON SUED A FORMER COMPANY CONTROLLER ALLEGING THAT HE EMBEZZLED PARTNERSHIP ASSETS KNOX COUNTY CHANCERY COURT JUDGE SHARON BELL WHO IS REVIEWING THE CIVIL CASE ISSUED A TEMPORARY RESTRAINING ORDER AGAINST WARREN SCHEDE WHO RESIGNED IN JUNE AS CONTROLLER OF CLAYTON'S RETAIL GROUP AND HIS WIFE CAROL SCHEDE KEEPING THEM FROM USING THEIR BANK ACCOUNTS JUDGE BELL ALSO ORDERED THE KNOX COUNTY SHERIFF TO SEIZE THEIR 19 COUNTY PROPERTIES INCLUDING THEIR HOME OTHER RESIDENCES AND CONDOMINIUMS THE SUIT ALLEGES THAT MR SCHEDE TRANSFERRED FUNDS FROM THE PARTNERSHIP'S GREEN ACRES MOBILE HOME PARK TO HIS PERSONAL ACCOUNTS AND USED THE FUNDS TO BUY REAL ESTATE AUTOMOBILES BOATS AND JEWELRY IT ALSO ALLEGES THAT HE TRANSFERRED MONEY OUT OF THE STATE THE SUIT SEEKS UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES MR SCHEDE ON THE ADVICE OF HIS ATTORNEY WOULDN'T COMMENT 9308240065 930824 LETTERS TO THE EDITOR MERC DEFENDS SEVERITY OF PENALTIES YOUR JULY 13 PAGEONE ARTICLE TRADERS SNARED BY FBI SEEM BETTER OFF NOW FOR STONEWALLING THEN FAILS TO MENTION OR ACKNOWLEDGE SEVERAL SIGNIFICANT FACTS THAT WOULD PRESENT A MORE COMPLETE AND LOGICAL PICTURE OF THE OUTCOME OF THE GOVERNMENT'S LATE1980S MULTIMILLIONDOLLAR INVESTIGATION OF A HANDFUL OF TRADERS AT THE CHICAGO MERCANTILE EXCHANGE AND CHICAGO BOARD OF TRADE WHERE THE MERC IS CONCERNED THE READER IS LEFT WITH THE DISTORTED AND FALSE IMPRESSION THAT THE EXCHANGE WENT OUT OF ITS WAY TO PUNISH THOSE WHO COOPERATED WITH THE GOVERNMENT THE ARTICLE JUXTAPOSES WILLIAM WALSH WHO IN HIS GUILTY PLEA ADMITTED TO DEFRAUDING CLIENTS WITH ROBERT MOSKY WHO PLEADED NOT GUILTY YES THE PENALTIES IMPOSED BY THE EXCHANGE WERE DIFFERENT MR WALSH AT THE VERY OUTSET ADMITTED THAT HE HAD ENGAGED IN AN ONGOING SCHEME IN WHICH BROKERS DELIBERATELY CONVERTED CUSTOMERS' FUNDS AND MARKET OPPORTUNITIES TO THEIR OWN USE FOR THIS HE RECEIVED WHAT IS TERMED THE DEATH PENALTY EXPULSION FROM THE EXCHANGE MR MOSKY MEANTIME ADMITTED TO NO SUCH THING HE PLEADED NOT GUILTY STONEWALLED IF YOU WILL AND OPTED FOR A TRIAL UNDER OUR SYSTEM OF JUSTICE WHAT A PROSECUTOR MIGHT CONSIDER STONEWALLING A PROSECUTED PARTY SURELY CONSIDERS DEFENDING ONE'S INNOCENCE GUILT OR INNOCENCE IS FOR A JURY TO DECIDE AND IN MR MOSKY'S TRIAL THE JURY FAILED TO FIND GUILT ON CHARGES OF DEFRAUDING CUSTOMERS REGARDLESS THE CASE OF SAM CALI A DEFENDANT NOT MENTIONED IN YOUR ARTICLE IS ILLUSTRATIVE INSOFAR AS THIS WHOLE DISPARATE TREATMENT MATTER IS CONCERNED MR CALI WHO WAS NOT AMONG THOSE SOCALLED COOPERATING WITNESSES WENT TO TRIAL AND LATER PLEADED GUILTY TO PARTICIPATING IN AN ONGOING SCHEME TO DELIBERATELY CONVERT CUSTOMERS' FUNDS HE SUBSEQUENTLY WAS BANNED FROM THE EXCHANGE PROSECUTORS ARE ENTITLED TO THEIR OPINIONS AND THEY CERTAINLY HAVE THE RIGHT TO COUNTER THAT THE MERC APPARENTLY IGNORED EVIDENCE THAT WAS CONTAINED IN INDICTMENTS AND PRESENTED IN OPEN COURT AGAINST NONCOOPERATING TRADERS BUT THE FACT IS THAT ALLEGATIONS IN AN INDICTMENT ARE NOT EVIDENCE AND CLEARLY ONCE THOSE ALLEGATIONS WERE SORTED OUT IN THE MOSKY TRIAL THE JURY WAS UNCONVINCED BY THE EVIDENCE THE PROSECUTORS PRESENTED OUR ROLE AS AN EXCHANGE IS REALLY QUITE SIMPLE WE ARE A SELFREGULATORY ORGANIZATION UNDER FEDERAL LAW WITH THE RESPONSIBILITY TO ENFORCE OUR RULES WE IMPOSE PENALTIES BASED ON FACTS AND ADMISSIONS THAT HAVE BEEN PROVED BEYOND A REASONABLE DOUBT WE HAVE NO LESSER LEGAL OR MORAL RESPONSIBILITY TO A DEFENDANT THAN TO PRESUME INNOCENCE UNTIL SUCH TIME AS GUILT IS EITHER ADMITTED OR PROVEN 9308240064 930824 INTERNATIONAL TOSHIBA MITSUI DENY 1986 PACT IN EAST GERMANY SPECIAL TO THE WALL STREET JOURNAL TOKYO TOSHIBA CORP AND MITSUI & CO DENIED A REPORT IN THE JAPANESE PRESS THAT THEY HAD AGREED IN 1986 TO SECRETLY PROVIDE ADVANCED SEMICONDUCTOR TECHNOLOGY TO EAST GERMANY IN VIOLATION OF INTERNATIONAL REGULATIONS THE SANKEI SHIMBUN NEWSPAPER REPORTED MONDAY THAT TOSHIBA AND MITSUI STRUCK A DEAL WITH THE COMMUNIST GOVERNMENT OF THE FORMER EAST GERMANY IN JUNE 1986 TO BUILD A FACTORY CAPABLE OF PRODUCING 256KILOBYTE SEMICONDUCTOR MEMORY CHIPS THE JAPANESE COMPANIES ABANDONED THE AGREEMENT IN 1988 AND DESTROYED EVIDENCE AFTER A TOSHIBA SUBSIDIARY WAS WIDELY CONDEMNED FOR ILLEGALLY EXPORTING ADVANCED MACHINE TOOLS TO THE SOVIET UNION THE REPORT SAID IN ITS REPORT FROM BERLIN SANKEI SAID THE CHIPS WERE CONSIDERED ADVANCED AT THAT TIME AND WOULD HAVE VIOLATED REGULATIONS ESTABLISHED BY THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS AN INTERNATIONAL WATCHDOG AGENCY SET UP TO RESTRICT EXPORTS OF TECHNOLOGY TO THE COMMUNIST BLOC TOSHIBA EXECUTIVE KANICHI ITO SAID NO SUCH CONTRACT EXISTED NOR HAD THERE EVER BEEN A TRANSFER OF TECHNOLOGY AS TO THE POSSIBILITY OF A PLAN TO EXPORT THE TECHNOLOGY HOWEVER HE SAID THE ELECTRONICS MAKER WOULD CONDUCT AN INTERNAL INVESTIGATION AND MAY COMMENT ON THE ISSUE WITHIN THE WEEK TOSHIBA SAID NEITHER DEAL WAS IN VIOLATION OF COCOM RULES BUT IT ABANDONED BOTH IN CONSIDERATION OF INTERNATIONAL CRITICISM MITSUI A MAJOR TRADING HOUSE RELEASED A STATEMENT ACKNOWLEDGING RECEIVING INQUIRIES FROM FORMER EAST GERMANY REGARDING NEW PRODUCTS AND TECHNOLOGY TRANSFERS BUT RULED OUT ANY INFRINGEMENT OF COCOM RULES THE NEWSPAPER SAID ITS INFORMATION CAME FROM EAST GERMAN GOVERNMENT AND STASI SECRET SERVICE DOCUMENTS NOW IN THE POSSESSION OF THE UNITED GERMAN GOVERNMENT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID IT WOULD LAUNCH ANOTHER INVESTIGATION INTO THE ALLEGATION CONCERNING THE EAST GERMAN PACT IN 1988 MITI GATHERED INFORMATION ABOUT THAT CHARGE BUT AT THAT TIME WE CONCLUDED THAT THERE WAS NO ILLEGAL ACT BY TOSHIBA A MINISTRY SPOKESMAN SAID WE ARE ONCE AGAIN LOOKING AT THE DATA WE EXAMINED IN 1988 9308240063 930824 ORANGE & ROCKLAND PROBE LEADS TO ARREST OF TWO EXEMPLOYEES PEARL RIVER NY TWO FORMER EMPLOYEES OF ORANGE & ROCKLAND UTILITIES INC WERE ARRESTED ON CHARGES OF GRAND LARCENY THE SECOND AND THIRD CHARGED AS PART OF AN INVESTIGATION OF MISUSE OF FUNDS AT THE UTILITY COMPANY THE ROCKLAND COUNTY DISTRICT ATTORNEY SAID PAUL PICKARD THE COMPANY'S DIRECTOR OF CORPORATE COMMUNICATIONS AND PUBLIC AFFAIRS UNTIL MID1992 AND HIS WIFE MARIA PICKARD ALSO A FORMER ORANGE & ROCKLAND EMPLOYEE ALLEGEDLY ARRANGED FOR THE UTILITY TO PAY FRAUDULENT INVOICES FROM A NEW YORK ADVERTISING FIRM THE FIRM IN TURN APPARENTLY MADE PAYMENTS TO A COMPANY OWNED BY MRS PICKARD THE PICKARDS WERE ARRAIGNED IN ORANGETOWN NY AND RELEASED IN THEIR OWN RECOGNIZANCE MR PICKARD RECENTLY WAS SUSPENDED WITH PAY FROM HIS POSITION AS DIRECTOR OF CORPORATE COMMUNICATIONS AT NORTHEAST UTILITIES CO IN HARTFORD CONN BECAUSE HE WAS THE SUBJECT OF THE ROCKLAND INVESTIGATION THE PICKARDS AND THEIR LAWYER COULDN'T BE REACHED FOR COMMENT THE PICKARDS' ARREST FOLLOWS THE ARRAIGNMENT LAST WEEK OF LINDA WINIKOW VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS AT THE UTILITY COMPANY WHO WAS CHARGED WITH GRAND LARCENY TAKING BRIBES AND MAKING ILLEGAL ELECTION CONTRIBUTIONS 9308240062 930824 INTERNATIONAL BRIEF ARABIAN OIL CO FIRSTHALF EARNINGS DECLINED ON LOWER SALES CHEAPER OIL JAPAN'S ARABIAN OIL CO SAID UNCONSOLIDATED PRETAX PROFIT DECLINED 28 IN THE FIRST HALF AND NET INCOME FELL 20 BECAUSE OF REDUCED SALES AND THE LOWER OIL PRICE PRETAX PROFIT FELL TO 2161 BILLION YEN 2067 MILLION FROM A YEAREARLIER 3007 BILLION YEN ON AN 18 DROP IN SALES TO 7882 BILLION YEN FROM 9665 BILLION YEN NET INCOME FELL TO 870 MILLION YEN FROM 109 BILLION YEN THE STRENGTHENED YEN CONTRIBUTED TO THE RESULTS THE COMPANY SAID AS THE COMPANY'S DOLLARDENOMINATED PETROLEUM WAS WORTH LESS IN JAPAN AN ARABIAN OIL OFFICIAL SAID A FULLYEAR FORECAST IS DIFFICULT TO MAKE DUE TO THE FLUCTUATION IN THE DOLLARYEN EXCHANGE RATE BUT SAID THE COMPANY EXPECTS SALES AND PROFIT TO BE DOWN OVERALL 9308240061 930824 REVIEW & OUTLOOK EDITORIAL ASIDES THANKS FOR THE NOTE WE FEEL OBLIGED TO THANK THE EDITORS AT THE NEW YORK TIMES FOR THE EDITORS' NOTE THAT RAN IN THEIR EDITIONS YESTERDAY THE NOTE OFFERED SOME PERSPECTIVE ON AN ARTICLE ABOUT VINCENT FOSTER WHICH APPEARED IN THE TIMES ON SUNDAY THIS IS THE TEXT OF THEIR EDITORS' NOTE AN ARTICLE YESTERDAY ABOUT VINCENT W FOSTER JR THE DEPUTY WHITE HOUSE COUNSEL WHO KILLED HIMSELF ON JULY 20 WAS ACCOMPANIED BY A CHART HEADED KEY EVENTS IN MR FOSTER'S LAST MONTHS' THE CHART LISTED AS SEPARATE EVENTS FOUR EDITORIALS IN THE WALL STREET JOURNAL THAT WERE CRITICAL OF MR FOSTER AS THE ARTICLE NOTED THESE EDITORIALS DISTURBED MR FOSTER BUT THERE IS NO WAY TO SPECIFY WHAT MOVED HIM TO SUICIDE THE EDITORIALS SHOULD NOT THEREFORE HAVE HAD SUCH PROMINENCE IN THE CHART 9308240060 930824 BUSINESS BRIEF HILTON HOTELS CORP RESORT COMPLEX IN GREECE TO BE OPERATED BY COMPANY HILTON HOTELS CORP BEVERLY HILLS CALIF SAID IT AGREED WITH A UNIT OF THE NATIONAL BANK OF GREECE TO OPERATE THE VOULIAGMENI COMPLEX A RESORT AND CONFERENCE CENTER NEAR ATHENS AND TO MAKE A SIGNIFICANT EXPENDITURE ON IMPROVEMENTS TO THE COMPLEX THE BIG GAMBLING AND LODGING COMPANY ONE OF SEVERAL US HOTELCASINO OPERATORS THAT HAVE RECENTLY SUBMITTED BIDS FOR GAMBLING OPERATIONS OVERSEAS SAID ITS CONRAD HOTELS UNIT AND A GREEK PARTNER ALSO AGREED WITH THE GREEK BANK TO PURSUE A POSSIBLE CASINO FOR THE VOULIAGMENI SITE THE GOVERNMENT OF GREECE IS EXPECTED TO ALLOCATE GAMBLING LICENSES THROUGHOUT THE COUNTRY BY JANUARY 1994 9308240058 930824 LETTERS TO THE EDITOR STATEMENT OFFENSIVE TO EMMYLOU HARRIS BEFORE I COULD EVEN READ MY OWN COPY I BEGAN RECEIVING CALLS AND FAXED COPIES OF AN ARTICLE IN YOUR JULY 22 LEISURE & ARTS SECTION TITLED ACHY BREAKY HEARTS A WORLD AWAY FROM NASHVILLE BY MICHELLE MAGEE IN PARAGRAPH 13 THE ARTICLE STATES THAT KEIKO WALKER A COUNTRYWESTERN STAR IN TOKYO FORMED KEIKO WALKER AND THE HOT STREET BAND NAMED AFTER A GROUP THAT ONCE BACKED EMMYLOU HARRIS FROM 1975 UNTIL 1989 EMMYLOU HARRIS WAS BACKED BY THE HOT BAND BUT NEVER THE HOT STREET BAND THIS TYPE OF INFORMATION IS EASILY OVERLOOKED HOWEVER THE 15TH PARAGRAPH BEGINS WITH UNLIKE HER FORMERLY HARDDRINKING IDOL WALKER LIVES A QUIET LIFE THIS COULD NOT BE AS EASILY OVERLOOKED THIS STATEMENT IS UNTRUE OFFENSIVE AND WOULD INDICATE MS HARRIS'S LIFESTYLE TO BE EXTRAORDINARILY DIFFERENT FROM REALITY 9308240057 930824 PEOPLES BANCORP SAYS IT MAY BE ACQUIRED STOCK PRICE RISES 21 WORCESTER MASS PEOPLES BANCORP OF WORCESTER INC SAID IT MAY BE ACQUIRED BY A LARGER BANK SPARKING A 21 SURGE IN ITS STOCK PRICE WOODBURY C TITCOMB PEOPLES PRESIDENT AND CHIEF EXECUTIVE SAID HE DISCLOSED THE TALKS WITH AN UNNAMED SUITOR BECAUSE WORD WAS GETTING OUT ON WALL STREET AND DRIVING UP THE BANK'S STOCK I FELT TO EVEN THE PLAYING FIELD ALL THE SHAREHOLDERS SHOULD KNOW THAT THERE MAY BE A POSSIBLE ACQUISITION HE SAID MR TITCOMB WOULDN'T COMMENT ABOUT THE POSSIBLE BUYER OTHER THAN TO SAY IT WAS A BANK SIGNIFICANTLY LARGER THAN PEOPLES WHICH HAS 913 MILLION IN ASSETS PEOPLES STOCK CLOSED AT 39 UP 675 IN NATIONAL OVERTHECOUNTER TRADING BASED ON 34 MILLION SHARES OUTSTANDING PEOPLES HAS A MARKET CAPITALIZATION OF ABOUT 132 MILLION WHILE MANY OTHER NEW ENGLAND BANK'S GREW FAST IN THE LATE 1980S ON REAL ESTATE DEVELOPMENT AND CONSTRUCTION LOANS ONLY TO BE HURT LATER WHEN THE REGION'S ECOMONY TURNED SOUR PEOPLES HAS STUCK BY ITS CONSERVATIVE LENDING PRACTICES AND HAS BEEN SOLIDLY PROFITABLE SINCE GOING PUBLIC IN 1986 THE BANK POSTED SECONDQUARTER NET INCOME OF 29 MILLION OR 88 CENTS A SHARE WHICH INCLUDED AFTERTAX GAINS ON SALES OF LOANS AND INVESTMENTS OF 720000 OR 21 CENTS A SHARE IN THE YEAREARLIER QUARTER PEOPLES REPORTED NET INCOME OF 18 MILLION OR 64 CENTS A SHARE 9308240056 930824 LETTERS TO THE EDITOR LEADERS AREN'T READING WRITINGS ON THE WALL YOUR JULY 2 EDITORIAL GOVERNMENT MEETS GODOT POINTS TO A HERD INSTINCT GROWING IN SINISTER FASHION THROUGHOUT THE WORLD BIG GOVERNMENT AND THE WELFARE STATE ARE COLLAPSING AND THE HERD IS MILLING ABOUT FRETFUL ABOUT WHAT IS GOING TO HAPPEN NEXT LEADERS ARE INSTRUMENTS OF SHAM SMILING AGREEABLY EVERYWHERE THE HERD DOES NOT FEEL COMFORTED BY THE SMILES READ THE FIRST INAUGURAL ADDRESSES OF WASHINGTON AND LINCOLN FOR A VIEW OF WHAT GREAT LEADERS DO IN SCARY TIMES BY THE TIME YOU GET TO THE KENNEDY INAUGURAL YOU ALREADY HEAR MORE BOMBAST AND BRAVADO THAN SUBSTANCE THE HOLLOW RING OF THE CLINTON INAUGURAL IS TRULY CHILLING YOU CITE DE TOCQUEVILLE'S LINKING GOVERNMENT WITH PERSONAL CHARACTER BUT THEN SEEM TO DISMISS IT BY NOTING HE OF COURSE WAS TALKING ABOUT THE STURDY UNDERPINNING OF RELIGIOUS PRACTICE PERHAPS WE SHOULD LOOK MORE CLOSELY AT THE WRITING ON THE WALL MAYBE WE SHOULD LOOK MORE CLOSELY AT THE THE BOOK OF REVELATION IF IT IS NOT ALREADY TOO LATE WE MUST TURN OUR ATTENTION AGAIN TO THE DEVELOPMENT OF CHARACTER TWENTIETHCENTURY RELATIVISM MAY WORK IN PHYSICS BUT IT IS DISASTROUS IN ETHICS HUMANKIND CANNOT THRIVE WITHOUT ABSOLUTES 9308240054 930824 US EMPLOYER GROUP SETTLE PART OF LAWSUIT INVOLVING WATERFRONT NEW YORK THE US ATTORNEY'S OFFICE SAID IT SETTLED PART OF A GOVERNMENT LAWSUIT RELATED TO SIX LOCAL LABOR UNIONS OF THE INTERNATIONAL LONGSHOREMEN'S ASSOCIATION THE SETTLEMENT WITH THE NEW YORK SHIPPING ASSOCIATION INC THE LARGEST EMPLOYER ASSOCIATION IN THE PORT OF NEW YORK AND NEW JERSEY CALLS FOR COMPILATION OF A LIST OF INDIVIDUALS LINKED WITH ORGANIZED CRIME THOSE LISTED WILL BE PROHIBITED FROM HOLDING OR SEEKING JOBS ON THE NEW YORK AND NEW JERSEY WATERFRONTS IN THE PAST THE US ATTORNEY'S OFFICE HAD PROVIDED CONSENT DECREES COVERING THE SIX UNION LOCALS AND SOME INDIVIDUALS FEDERAL JUDGE LEONARD B SAND ALSO ORDERED 11 INDIVIDUALS TO DISGORGE 313853 IN ILLEGALLYOBTAINED KICKBACKS AND PAYOFFS THEY INCLUDE GAMBINO FAMILY BOSS JOHN GOTTI HELD LIABLE FOR 99553 CURRENTLY MR GOTTI IS IN JAIL FOR OTHER CRIMES THE SETTLEMENT STEMS FROM A SUIT FILED IN MANHATTAN AGAINST THE UNIONS IN 1990 UNDER THE CIVIL PROVISION OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE KNOWN AS RICO THE SUIT ALLEGED A PATTERN OF RACKETEERING THAT INCLUDED MURDER EXTORTION EMBEZZLEMENT OF UNION FUNDS AND MAIL FRAUD JUDGE SAND CALLED THE SETTLEMENT THE MOST IMPORTANT PART IN THE ENTIRE LITIGATION THE US ATTORNEY WILL COMPILE THE LIST OF INDIVIDUALS PROHIBITED FROM WORKING ON THE WATERFRONT WHICH LAWENFORCEMENT OFFICIALS CONSIDER A KEY STEP IN REMOVING ORGANIZEDCRIME FIGURES FROM THE INDUSTRY HOWEVER THE GOVERNMENT DROPPED EFFORTS TO SECURE A BROADER INJUNCTION THAT WOULD HAVE BARRED ANY DEALINGS BETWEEN EMPLOYERS AND MOBRELATED ENTITIES THE SETTLEMENT COVERS ONLY EMPLOYEREMPLOYEE RELATIONS THE GOVERNMENT IS STILL SEEKING A WATERFRONT ADMINISTRATOR TO HANDLE MATTERS INVOLVING NONASSOCIATION EMPLOYERS 9308240052 930824 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 NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MEDIUMTERM NOTES DUE SEPT 3 2003 PRICED AT PAR TO YIELD 608 ACCORDING TO MCM CORPORATEWATCH THE MEDIUMTERM NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 475 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FRANKLIN FIRST FINANCIAL CORP 1439529 COMMON SHARES PRICED AT 2950 APIECE THROUGH UNDERWRITERS LED BY AG EDWARDS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993189 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 3275 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993190 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS BANQUE NATIONAL DE PARIS FRANCE ONE BILLION FRENCH FRANCS OF 65 EUROBONDS DUE SEPT 29 2003 AT ISSUE PRICE 100201 FOR OWN ACCOUNT REOFFERED AT 98576 TO YIELD 67 A SPREAD OF 38 BASIS POINTS ABOVE BENCHMARK 10YEAR FRENCH TREASURY FEES TWO POINTS COMPAGNIE FINANCIERE DE CIC ET DE L'UNION EUROPEEN FRANCE 150 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 24 1998 AT ISSUE AND REOFFER PRICE 998 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT 25 BASIS POINTS ABOVE THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 02 POINT LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE GERMANY 200 MILLION MARKS OF 6625 EUROBONDS DUE SEPT 22 2003 AT ISSUE PRICE 1013 VIA LEHMAN BROTHERS BANKHAUS AG REOFFERED AT 9925 TO YIELD 673 A SPREAD OF 40 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE BONDS OFFERED AS SENIOR DEBT ISSUER RESERVES OPTION TO CONVERT BONDS TO SUBORDINATED DEBT FEES 25 POINTS LEHMAN BROTHERS HOLDINGS INC US 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE FEBRUARY 1996 AT ISSUE AND REOFFER PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH YEN LIBOR PLUS 40 BASIS POINTS FEES UNDISCLOSED LKB BADENWUERTTEMBERG FINANCE NV GERMAN PARENT ONE BILLION MARKS OF 65 EUROBONDS DUE SEPT 15 2008 AT ISSUE PRICE 10085 VIA JP MORGAN GMBH REOFFERED AT 9825 TO YIELD 669 A MARGIN OF 36 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES THREE POINTS 9308240051 930824 OTC FOCUS NASDAQ INDEX SLIPS SLIGHTLY TO 73086 ON MEDICAL AND BIOTECHNOLOGY ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET FELL SLIGHTLY ON LIGHT TRADING THE NASDAQ COMPOSITE INDEX EASED 010 OR 001 TO 73086 DECLINING ISSUES OUTNUMBERED ADVANCERS 1452 TO 1340 ON TOTAL VOLUME OF 2269 MILLION SHARES DOWN FROM FRIDAY'S 2604 MILLION SHARES THE MARKET HAD A STRONG RUNUP LAST WEEK AND IT IS JUST TAKING A BREAK SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT LEHMAN BROTHERS INC THE MARKET OPENED UP ON THE DOWN SIDE AND FOUGHT ITS WAY UP BUT THE SELLING IN MEDICAL AND BIOTECHNOLOGY STOCKS KEPT THE MARKET FROM RISING CHIRON DROPPED 2 TO 59 A NEGATIVE NEWS REPORT ABOUT THE EMERYVILLE CALIF COMPANY FROM BERLIN SENT THE STOCK TUMBLING THE REPORT SUGGESTED THAT SUPPLIES OF THE MULTIPLE SCLEROSIS DRUG BETASERON MIGHT FALL SHORT OF ANALYSTS' EXPECTATIONS ANALYSTS HAVE BEEN FORECASTING THAT CHIRON WILL BE ABLE TO SUPPLY ENOUGH OF THE DRUG TO TREAT ROUGHLY 7000 PATIENTS THIS YEAR AND AROUND 30000 NEXT YEAR ANALYSTS WHO ARE SKEPTICAL OF THE REPORT SAID CHIRON DIDN'T SAY ANYTHING THAT WOULD INDICATE THAT THEY AREN'T STILL COMFORTABLE WITH WALL STREET'S CONSENSUS ESTIMATES BETASERON WHICH WAS APPROVED FOR MARKETING IN THE US BY THE FOOD AND DRUG ADMINISTRATION ON JULY 23 IS EXPECTED TO BE SHIPPED IN MIDSEPTEMBER A CHIRON SPOKESMAN DECLINED TO COMMENT INVOKING A CONTRACTOBLIGATION NOT TO DISCUSS PRODUCT SUPPLY AND PATIENT POPULATION FORECASTS NEWBRIDGE NETWORKS LEAPED 2 1/8 TO 69 1/4 FOLLOWING ITS ANNOUNCEMENT THAT IT HAS ENTERED INTO A STRATEGIC PARTNERSHIP WITH XYPLEX THAT INCLUDES COOPERATIVE TECHNOLOGY DEVELOPMENT AND JOINT SALES AND MARKETING XYPLEX ADDED 1 3/8 TO 25 1/4 A&W BRANDS ROSE 1 TO 19 1/4 CADBURY SCHWEPPES SAID THAT A WEEKEND MEDIA REPORT IN GREAT BRITAIN ABOUT A POSSIBLE BID FOR A&W BRANDS WAS ENTIRELY SPECULATIVE A CADBURY OFFICIAL SAID THAT THE COMPANY CONSTANTLY REVIEWS ITS INTERNATIONAL DEVELOPMENT PROSPECTS BUT DECLINED TO DISCUSS A&W OR ANY OTHER SPECIFIC EXPANSION PLANS PEOPLES BANCORP OF WORCESTER SURGED 6 3/4 TO 39 THE WORCESTER MASS HOLDING COMPANY FOR PEOPLES SAVINGS BANK SAID THAT IT IS ENGAGED IN PRELIMINARY DISCUSSIONS WITH A POTENTIAL BUYER SALEM SPORTSWEAR TUMBLED 1 1/4 TO 5 PRUDENTIAL SECURITIES LOWERED ITS INVESTMENT RATING TO HOLD FROM BUY ON FRIDAY THE HUDSON NH SPORTS APPAREL MAKER SAID ITS FOURTHQUARTER AND YEAREND EARNINGS WILL BE SIGNIFICANTLY BELOW ITS INTERNAL EXPECTATIONS THE COMPANY BLAMED DELIVERY AND PRODUCTION PROBLEMS THAT LOWERED SALES THE COMPANY PROJECTS A FOURTHQUARTER LOSS OF UP TO 15 CENTS A SHARE INCLUDING A PRETAX RESTRUCTURING CHARGE OF 45 MILLION SALEM EARNED 32 CENTS A SHARE IN THE YEARAGO FOURTH QUARTER ECI TELECOM ROSE 5 TO 46 1/2 THE PETAH TIKVA ISRAEL COMPANY SAID ITS ECI TELECOM UNIT GOT AN ORDER FROM THE DEUTSCHE BUNDESPOST TELEKOM TOTALING ABOUT 60 MILLION TO SUPPLY ADDITIONAL ACCESS MULTIPLEXERS TO BE USED IN THE GERMAN NETWORK THE COMPANY SAID THE MULTIPLEXERS SUPPORT THE EXTENSION OF VOICE AND/OR BASIC RATE ISDN SERVICES FROM A LOCAL CENTRAL OFFICE TO SUBSCRIBER PREMISES OVER FOURWIRE COPPER OR SINGLE FIBER OPTIC CABLE STARSIGHT TELECAST CLIMBED 2 1/2 TO 22 1/2 KIDDER PEABODY & CO ANALYST ALAN GOULD INITIATED COVERAGE OF THE STOCK WITH A STRONG BUY RATING KIDDER PEABODY COMANAGED THE OFFERING OF THE DEVELOPER OF A PATENTED ONSCREEN INTERACTIVE TELEVISION GUIDE AND VCR CONTROL SERVICE STARSIGHT PRICED ITS SHARES AT 15 EACH IN ITS INITIAL OFFERING IN LATE JULY GERRITY OIL & GAS DROPPED 1 7/8 TO 12 1/8 THE DENVER COLO COMPANY SAID ITS SHARES DROPPED AFTER GOLDMAN SACHS & CO LOWERED ITS 1993 EARNINGS ESTIMATE FOR THE COMPANY TO 120 A SHARE ON A PRIMARY BASIS FROM 160 A SHARE IN 1992 THE COMPANY EARNED 50 CENTS A SHARE A COMPANY SPOKESMAN SAID THE BROKERAGE FIRM'S REDUCTION IS BASED ON EXPECTATIONS OF LOWER VOLUME PRODUCTION AS WELL AS GOLDMAN'S REVISED OIL AND GAS PRICE ESTIMATES 9308240050 930824 LAW LEGAL BEAT RULING COULD LIMIT AVAILABILITY OF TAX RETURNS IN INVESTIGATIONS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A SWEEPING FEDERAL APPEALS COURT DECISION COULD MAKE IT MUCH HARDER FOR FEDERAL AGENCIES TO OBTAIN INCOMETAX RECORDS FROM INDIVIDUALS THEY INVESTIGATE THE RULING DECLARES INCOMETAX RETURNS PRIVATE AND AS SUCH NOT AVAILABLE TO GOVERNMENT REGULATORS UNLESS A BALANCE IS STRUCK BETWEEN THE PRIVACY OF INCOMETAX RETURNS AND THE NEEDS OF LAW ENFORCEMENT AS A PRACTICAL MATTER THE RULING BY THE SEVENTH CIRCUIT COURT OF APPEALS IN CHICAGO MEANS THAT THE FEDERAL GOVERNMENT WILL HAVE TO SHOW AT A HEARING EXACTLY HOW AN INDIVIDUAL'S TAX RETURNS ARE GERMANE TO ITS INVESTIGATION THE APPEALS COURT RULING DOESN'T APPLY TO CRIMINAL INVESTIGATIONS FEDERAL PROSECUTORS CAN OBTAIN TAX INFORMATION ABOUT TARGETS OF INVESTIGATIONS FROM THE INTERNAL REVENUE SERVICE BUT IF UPHELD THE RULING COULD BECOME A MAJOR IMPEDIMENT TO ALL FEDERAL REGULATORY AGENCIES ESPECIALLY SECURITIES AND FINANCIAL REGULATORS WHICH UNTIL NOW HAVE BEEN ACCUSTOMED TO OBTAINING PRIVATE TAX RECORDS SIMPLY BY SUBPOENAING THEM FROM NOW ON THE GOVERNMENT IS GOING TO HAVE TO EXPLAIN WHY THEIR INVESTIGATION IS MORE PERSUASIVE THAN THE RIGHT TO PRIVACY SAID JAMES B KOCH AN ATTORNEY AT THE CHICAGO LAW FIRM OF GARDINER KOCH & HINES WHO IS REPRESENTING SEVERAL TARGETS OF AN INVESTIGATION BY THE COMMODITY FUTURES TRADING COMMISSION IN THE CASE THE RULING HANDED DOWN LAST MONTH BY A THREEJUDGE PANEL IS BINDING ONLY IN THE STATES WITHIN THE SEVENTH CIRCUIT ILLINOIS INDIANA AND WISCONSIN GOVERNMENT LAWYERS FOR THE COMMISSION WHO ARE ASKING THE FULL 12MEMBER PANEL TO RECONSIDER THE OPINION DECLINED TO COMMENT BUT IN A LEGAL BRIEF THEY COMPLAINED THAT THE APPELLATE DECISION COULD BE READ TO RESTRICT UNDULY THE ABILITY OF FINANCIAL REGULATORY AGENCIES TO FULLY INVESTIGATE TRANSACTIONS THAT FALL WITHIN THEIR JURISDICTIONS THE LEGAL DISPUTE OVER THE TAX RECORDS SPRANG FROM AN INVESTIGATION BY THE COMMISSION OF FIVE BROTHERS WHO HAVE OPEN ACCOUNTS AND TRADE COMMODITIES FUTURES CONTRACTS FOR THEMSELVES FROM A HOUSE IN THE CHICAGO SUBURBS INVESTIGATORS FOR THE COMMISSION SUSPECT THE BROTHERS OF MAKING PHONY TRADES TO REALLOCATE LOSSES FOR INDIVIDUALS WHO IN TURN ARE TAKING UNDUE ADVANTAGE OF TAX BENEFITS ACCORDING TO THE OPINION ACCORDING TO THE OPINION THE COMMISSION BELIEVED THAT THE PRESENCE OF TAX MOTIVES COULD BE EVIDENCE OF A LIKELY VIOLATION OF THE RULES THAT THE CFTC DOES ENFORCE HENCE SUBPOENAS FOR THE BROTHERS' INCOMETAX RECORDS WERE ISSUED IN 1991 EVEN THOUGH INVESTIGATORS HAD NO EVIDENCE THAT THERE WAS ANYTHING INCRIMINATING IN THEM A LOWER COURT UPHELD THE SUBPOENAS ON GROUNDS THAT TAX RETURNS THAT INCLUDE INFORMATION ABOUT TRADING ACTIVITY ARE REQUIRED RECORDS BOOKS AND RECORDS THAT COMPANIES IN REGULATED INDUSTRIES ARE REQUIRED TO KEEP AND TURN OVER UPON REQUEST THE APPEALS PANEL REJECTED THAT ARGUMENT ON NARROW GROUNDS UNRELATED TO THE PRIVACY ISSUE INCOMETAX RECORDS ARE HIGHLY SENSITIVE DOCUMENTS THE PANEL RULED THAT IS WHY THE COMMISSION CAN NOT GET THEM DIRECTLY FROM THE INTERNAL REVENUE SERVICE IN ADDITION TO THE PRIVACY ISSUE THE COURT ADDED THAT PROMISCUOUS DISCLOSURE OF TAX RECORDS WOULD PROMPT TAXPAYERS TO WITHHOLD OR DESTROY INFORMATION THE SELFREPORTING SELFASSESSING CHARACTER OF THE INCOMETAX SYSTEM WOULD BE COMPROMISED THE PANEL CONCLUDED COMMODITY FUTURES TRADING COMMISSION VS THOMAS W COLLINS ET AL SEVENTH US CIRCUIT COURT OF APPEALS CHICAGO 922917 HOW FAR CAN PICKETING GO DURING A LABOR DISPUTE JEROME I SAGER THE EXECUTIVE DIRECTOR AND GENERAL COUNSEL FOR A PHARMACY TRADE GROUP THOUGHT THAT MEMBERS OF A UNION REPRESENTING RETAIL CLERKS WENT TOO FAR WHEN THEY PICKETED HIS MANHATTAN HOME OFFICE AND NEW JERSEY COUNTRY CLUB BUT A NEW YORK STATE JUDGE DISMISSED HIS SUIT SEEKING TO BLOCK THE PROTESTS MR SAGER IS ADVISING THE NEGOTIATING TEAM FOR EMPIRE STATE PHARMACEUTICAL SOCIETY WHICH HAS BEEN TRYING TO HAMMER OUT A NEW CONTRACT WITH MEMBERS OF LOCAL 1199 OF THE DRUG HOSPITAL AND HEALTH CARE EMPLOYEES UNION SINCE 1991 UNION MEMBERS STARTED PICKETING MR SAGER IN JUNE ALLEGEDLY CALLING HIM CROOK ROBBER AND THIEF MR SAGER'S LAWYER MARVIN LERMAN ALSO SAID THAT UNION MEMBERS HARASSED AND MENACED MR SAGER AND MEMBERS OF HIS FAMILY EVEN FOLLOWING THEM ON THE STREET MR LERMAN SAID MR SAGER SHOULDN'T BE SUBJECTED TO PICKETING BECAUSE HE ISN'T REALLY PART OF THE LABOR DISPUTE IN THIS CASE HE'S ACTING SOLELY AS THE NEGOTIATORS' ATTORNEY HE SAID IF THEY HAVE A PROBLEM WITH EMPIRE STATE GO PICKET THEM OR GO PICKET THE PHARMACY OWNERS MR LERMAN SAID MITRA BEHROOZI A LAWYER FOR THE UNION SAID MR SAGER WAS TRYING TO DRAW A LINE BETWEEN ADVISING AND PARTICIPATING IN THE NEGOTIATIONS AND CALLED THAT SPLITTING A HAIR JUDGE WILLIAM J DAVIS IN MANHATTAN RULED THAT UNION MEMBERS' PROTESTS DIRECTED AT MR SAGER FALL INTO THE CATEGORY OF A LABOR DISPUTE AND ARE UNDER THE JURISDICTION OF THE NATIONAL LABOR RELATIONS BOARD WHICH IS ALREADY CONSIDERING THE ISSUE THE JUDGE ALSO RULED THAT BECAUSE NO VIOLENCE OCCURRED IT WASN'T APPROPRIATE FOR THE COURT TO GET INVOLVED MR LERMAN SAID NO DECISION HAS BEEN MADE ABOUT WHETHER TO APPEAL LABOR LAWYERS HAVE BEEN PICKETED IN THE PAST ALBEIT INFREQUENTLY L ROBERT BATTERMAN A LABOR PARTNER AT PROSKAUER ROSE GOETZ & MENDELSOHN A LARGE NEW YORK FIRM SAYS HIS OFFICES AND HOME HAVE BEEN PICKETED SEVERAL TIMES BUT HE ONLY FILED A CHARGE WITH THE NLRB ONCE WHEN HE WAS PICKETED BY LEGAL SERVICES ATTORNEYS THEY GOT REALLY NASTY HE SAID I FELT THEY WERE INTERFERING WITH MY REPRESENTATION OF MY CLIENT THE NLRB CLAIM WAS SETTLED WHO'S NEWS MARIA TERESA JONES FORMERLY A COMMISSIONER OF THE NEW YORK TAX APPEALS TRIBUNAL HAS BECOME COUNSEL TO NEW YORK LAW FIRM ROSENMAN & COLIN MS JONES WILL ADVISE CLIENTS ON TAX PLANNING THE STATE TRIBUNAL IS AN APPELLATE JUDICIAL BODY THAT DECIDES TAXPAYER DISPUTES ELLEN JOAN POLLOCK CONTRIBUTED TO THIS ARTICLE 9308240049 930824 HEARD ON THE STREET SHORTS' CRY FOUL IN CONTEST WITH LONGS' BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES ARE SO RESILIENT NOWADAYS THAT THE BEARS KNOWN AS SHORT SELLERS ARE STARTING TO CLAIM SOMETHING FISHY IS KEEPING THOSE PRICES UP USUALLY IT'S THE SHORTS WHO GET ACCUSED OF USING UNSAVORY PRACTICES TO MOVE STOCK PRICES IN THEIR FAVORITE DIRECTION DOWN BUT LOOK WHO'S CRYING NOW THE SHORTS ARE MANIPULATED AGAINST MORE THAN THEY MANIPULATE CONTENDS MEYER BERMAN A SAVVY SHORTSELLER BASED IN GREAT NECK NY CONGRESS SHOULD INVESTIGATE MR BERMAN ADDS LET'S JUST SEE WHO DOES THE MANIPULATION THE LONGS OR THE SHORTS THE SHORTS' ARGUMENT IS THAT STOCK PRICES ARE BEING YANKED UPWARD ARTIFICIALLY BY THE TRADING TACTICS OF MUTUAL FUNDS AND OTHER BIG INVESTORS KNOWN AS LONGS THEIR BIGGEST COMPLAINT IS WITH MOMENTUM INVESTORS WHO TEND TO JUMP ON BOARD WHEN A STOCK IS SURGING SHORT SELLERS ARE PROFESSIONAL TRADERS WHO SELL BORROWED STOCK HOPING TO REAP A PROFIT LATER BY REPLACING THE BORROWED SHARES WITH A FISTFUL BOUGHT AT LOWER PRICES IMAGINE THEIR FRUSTRATION AS THE STOCK MARKET KEEPS DEFYING THEM BY HITTING RECORD AFTER RECORD PROPELLING THE GAINS ARE LARGE CASHBLOATED INSTITUTIONAL INVESTORS SUCH AS MUTUAL FUNDS WHICH ARE POURING MONEY INTO TRENDY STOCKS OR STOCK GROUPS AND ACCELERATING PRICE INCREASES THE SHORTS SAY INDIVIDUAL STOCKS SUCH AS SNAPPLE BEVERAGE STARBUCKS OUTBACK STEAKHOUSE AND SYBASE HAVE BECOME OVERVALUED MUCH MORE QUICKLY THAN THEY WOULD HAVE IN THE PAST THROUGH SUCH LARGESCALE BUYING JAMES CHANOS OF KYNIKOS ASSOCIATES IS ONE OF THE BIGGEST WALL STREET SHORTS WITH ABOUT 400 MILLION UNDER MANAGEMENT AS OF LAST YEAR BUT HE SAYS THE AMOUNT OF MONEY POURING INTO THE MUTUALFUND INDUSTRY EVERY WEEK NOW EQUALS WHAT SHORTSELLERS HAVE IN TOTAL DEDICATED TO THE PROFESSIONALBEAR BUSINESS LESS THAN 2 BILLION THE DELUGE OF INFLOWS INTO MUTUAL FUNDS HAS ALLOWED FADDISH BUSINESSES WITH DUBIOUS PROSPECTS FROM STEAKHOUSES TO VIDEOGAME COMPANIES TO ROUTINELY SELL FOR 50 OR 100 TIMES EARNINGS MR CHANOS SAYS IN A LETTER TO INVESTORS ONE OF THE THINGS WE POINT OUT TO CLIENTS HE ADDS IN AN INTERVIEW IS THAT MOMENTUM INVESTING IS GOING TO EXACERBATE THE DECLINE WHEN THE MOVIE RUNS IN REVERSE WHICH IT ALMOST INEVITABLY WILL DO IT GOES BACK TO SOME OF THE OTHER GREAT STOCK MARKET MANIAS OF MY LIFETIME THE NIFTY 50 KIND OF STOCKS IN THE EARLY 1970S OR THE GREAT CONGLOMERATE WAVE OF THE LATE 1960S ANYTHING THAT UPSETS THE APPLE CART WILL GET A FLOOD OF CAPITAL GOING THE OTHER WAY WILLIAM LYONS WHO EDITS SHORT ON VALUE AN ATLANTA NEWSLETTER SAYS THE MARKET IS BEING PROPPED UP BY MUTUAL FUND MANAGERS WHO'VE NEVER SEEN A BEAR MARKET WHO BUY A STOCK FOR NO OTHER REASON OTHER THAN IT HAS ALREADY GONE UP SUCH COMPLAINTS ARE TO BE SURE SELFSERVING FOR THE SHORTS THE BEARS HAVE BEEN BURNED BY 2 1/2 YEARS OF POOR PERFORMANCE AMID THE MARKET'S RALLIES THEY ARE STILL WAITING FOR THE MARKET'S BUBBLE TO BURST YET THE SHORTS DO HAVE A POINT ABOUT THE POWER OF MUTUAL FUNDS TO KEEP THE CURRENT RALLY GOING THE TWO EXCESSES OF THIS BULL MARKET HAVE BEEN MOMENTUM INVESTING AND MUTUAL FUND INVESTING SAYS SHORTSELLER MICHAEL MURPHY WHO EDITS OVERPRICED STOCK SERVICE A NEWSLETTER MY VIEW IS THEY'RE BOTH GOING TO GET IT IN THE NECK AT THE END OF THE BULL MARKET THE SHORTS INSIST THAT INVESTORS ON THE LONG SIDE WORK IN TANDEM TO PUSH UP STOCKS MUCH MORE THAN SHORTS ACTUALLY DO GOING THE OTHER WAY THERE ARE FAR MORE FALSE RUMORS SPREAD BY BULLS THAN BY BEARS SAYS MR MURPHY AND THE SHORTS SAY STOCKS ARE ARTIFICIALLY MOVED BY THE WINKEDAT PRACTICE IN WHICH BIG INVESTORS TRY TO PUSH UP STOCK PRICES AT THE END OF THE QUARTER TO MAKE FUND MANAGERS' QUARTERLY PERFORMANCE LOOK BETTER STOCK MUTUAL FUNDS ARE BULGING WITH NEARLY 600 BILLION IN ASSETS SO THEY HAVE MUCH MORE AMMUNITION TO GET STOCKS TO GO UP THAN SHORTSELLERS HAVE TO SHOOT THEM DOWN DEDICATED SHORT SELLERS DESPITE THEIR POWERFUL REPUTATION CAN'T ALWAYS GET THEIR WAY WITH ASSETS ONLY 03 AS LARGE AS THE STOCK FUNDS POSSESS THE IMAGE OF POWERFUL UNDERHANDED AND WILDLY PROFITABLE SHORTS IS OUT OF DATE SAYS PETER DAPUZZO THE FORMER COHEAD OF TRADING AT LEHMAN BROTHERS WHO NOW IS A SENIOR MANAGING DIRECTOR AT CANTOR FITZGERALD THE REAL NEGATIVE ATTITUDE AGAINST THEM ISN'T DESERVED ANYMORE BECAUSE THEY'VE GOTTEN MORE PROFESSIONAL IN HOW THEY'RE DOING THINGS MOMENTUM INVESTING ON THE OTHER HAND IS ROCKING THE STOCK MARKET SAYS MR DAPUZZO WHO IS GIVING A SPEECH ON SHORTSELLING AT A WEST COAST TRADERS' CONVENTION THIS WEEKEND WHEN THESE STOCKS BREAK OUT ALL THESE TRADERS AND FREE RIDERS JUMP ON AND MAKE THE MOVEMENT MORE GRANDIOSE THAN IT WOULD BE WE'VE SEEN IT ESPECIALLY SINCE THE FALL OF 1990 DURING THIS RALLY THIS MOMENTUM INVESTING HAS BECOME ENORMOUS THESE STOCKS GET TO LEVELS THEY WOULDN'T HAVE IF NOT FOR OUTSIDE BUYERS THERE'S NO PENALTY FOR PILING ON THE RESULT IT'S A VERY DIFFICULT PERIOD FOR SHORT SELLERS AND OTHER MARKET SKEPTICS SAYS VICTOR SPERANDEO PRESIDENT OF RAND MANAGEMENT A SHORT HILLS NJ MONEY MANAGEMENT FIRM THE MARKET SIMPLY WON'T GO DOWN SINCE THE OCTOBER 1990 INCEPTION OF THIS BULL MARKET HE SAYS THERE HASN'T BEEN EVEN A 7 1/4 SELLOFF THE LONGEST PERIOD THAT HAS HAPPENED SINCE 1946 HE NOTES MR SPERANDEO SAYS IT DOESN'T DO ANY GOOD FOR SHORT SELLERS TO COMPLAIN ABOUT THEIR FATE IT REALLY SOUNDS LIKE A BUNCH OF CRYBABIES HE SAYS STILL I HAVE BEEN MORE BEARISH THAN BULLISH THROUGHOUT THIS CYCLE SO I CAN ATTEST IT'S FRUSTRATING THE SHORTS SAY THERE ARE JUST FAR MORE PEOPLE INTERESTED IN HELPING A STOCK GO UP THAN THERE ARE PUSHING IT DOWN CORPORATE OFFICERS PUBLIC RELATIONS PEOPLE EMPLOYEES INVESTMENT BANKERS ANALYSTS THE SYSTEM IS SET TO HYPE STOCKS UP SAYS MR MURPHY MEANWHILE THE SHORTS SAY THEY SHOULD GET CREDIT FOR THE FUNDAMENTAL STOCK RESEARCH THEY DO WHICH CAN WARN INVESTORS ABOUT UNSTABLE COMPANIES THEY HAVE A POINT THOUGH SOME OF THE SHORTS' RESEARCH IS JUST THE KIND OF QUESTIONABLE ACTIVITY THAT HAS GIVEN SHORTS A BAD NAME FOR DECADES FOR EXAMPLE POSING AS GOVERNMENT OFFICIALS ON THE PHONE TO GET SENSITIVE INFORMATION FROM LOWLEVEL EMPLOYEES AT A COMPANY THE BIGGEST THING SHORTS SAY THE PUBLIC MISUNDERSTANDS IS THAT THEY DON'T TRADE SECRETS WITH ONE ANOTHER AT LEAST NOT AS MUCH AS THEY USED TO AND IF THEY DO IT'S NOTHING COMPARED WITH HOW LONGS WORK TOGETHER THEY SAY MR BERMAN THE GREAT NECK SHORTSELLER SAYS THE FUNDS ARE VIOLATING THE SPIRIT OF THE SECURITIES LAWS WHEN THEY POUR INTO A THINLY TRADED STOCK AND DRIVE IT RELENTLESSLY HIGHER HE SAYS IT'S LIKE DRIVING A TANK DOWN A LOCAL STREET THERE IS NO SPECIFIC LAW AGAINST DRIVING A TANK BUT IT'S AGAINST THE SPIRIT OF THE LAW HE SAYS THESE FUNDS SAYS MR BERMAN ARE PLAYING VERY RISKY GAMES JUST LOOK AT WHAT THE BIOTECH STOCKS DID I DON'T SEE HOW THE WORLD BENEFITS TAKING A STOCK FROM 2 TO 20 THAT DOESN'T EVEN MAKE WIDGETS 9308240048 930824 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THIS IS THE STORY OF A SWEDISH HAMLET THROWN INTO TURMOIL WHEN ITS LEADING CITIZEN DIES AND HIS FLAMBOYANT GRANDDAUGHTER COMES TO TOWN TO CLAIM HER INHERITANCEAND TO SHOCK THE LOCALS THIS MAY SOUND LIKE THE INGREDIENTS FOR A MOROSE STEW OF SCANDINAVIAN BROODING AND STRIFE BUT HOUSE OF ANGELS HAS A SUNNY TEMPERAMENT CLOSER IN SPIRIT TO CAPRA THAN TO BERGMAN IT'S SWEET AND FUNNY IT ISN'T SO MUCH GREAT FILMMAKING AS A PIECE OF FRENETIC CHOREOGRAPHY LIKE THE FAMOUS ENERGIZER BATTERY IT JUST KEEPS GOING AND GOING AND GOING THE FILMMAKERS KEEP LAYING ON INCREDIBLE OBSTACLES FOR THE HERO TO OVERCOME AND HE DOES THE MOVIE IS PACKED WITH CLEVER MAYHEM INCLUDING ONE OF THE MOST STUNNING ACTION SEQUENCES EVER PUT ON FILM THE HUMANS GAMELY KEEP UP WITH THE MACHINERY MR FORD IS SYMPATHETIC AND ATHLETIC AS THE MAN ON THE RUN AND MR JONES IS JUST GREAT AS HIS IDIOSYNCRATIC PURSUER AS YOU WOULD EXPECT FROM A MEL BROOKS FILM THIS SPOOF OF ALL ROBIN HOOD MOVIES IS UNABASHEDLY VULGAR FILLED WITH THE KIND OF SILLY BELCH'N'BOOBY JOKES 12YEAROLD BOYS FIND PARTICULARLY APPEALING BUT EVEN ADULTS MAY FIND THEMSELVES GIGGLING MANY TIMES IN THIS VERY LOW COMEDY MR BROOKS TELLS JOKES HERE THE SAME WAY HE'S BEEN TELLING THEM FOR YEARS WHICH STRANGELY ADDS TO THE PICTURE'S LOWLIFE CHARM IF YOU CAN CALL IT THAT THIS FROTHY PICTURE AIMS TO PLEASE AND IT DOES MOSTLY ESPECIALLY THOSE PEOPLE WHO COMPLAIN THEY LIKED WOODY BETTER WHEN HE WAS FUNNY IT'S NOT MUCH MORE THAN A LONG SKIT PATCHED TOGETHER WITH JOKES BUT THE PATCHWORK ISN'T SKIMPY THE JOKES ARE PLENTIFUL AND VERY FUNNY MS KEATON AND MR ALLEN ARE BACK TOGETHER AGAIN AND FUN TO WATCH PLAYING A COMFORTABLE COUPLE IN A LONGSTANDING MARRIAGE IN WHICH FRIENDLINESS HAS REPLACED PASSION THE MOVIE VERSION OF THE MICHAEL CRICHTON NOVEL PLAYS UP THE MURDER MYSTERY AND TONES DOWN THE JAPAN BASHING A DELIBERATE MURKINESS HANGS OVER THE MOVIE THE GOOD GUYS AND BAD GUYS DON'T NEATLY FALL INTO PLACE WHAT'S MOST INTERESTING IS THE WAY THE FILMMAKERS MAKE US SEE HOW EASY IT IS FOR THE PEOPLE OPERATING IN AN INSULATED TECHNOLOGICALLY SOPHISTICATED WORLD OF HIGHPOWERED BUSINESS TO LOSE THEIR GRIP ON REALITY OR EVEN THEIR SENSE OF WHAT REALITY IS AND HOW TECHNOLOGY MAKES IT EASIER FOR THOSE WHO CAN AFFORD IT TO BREAK THE RULES THIS ELEGANTLY AUSTERE MOVIE REMAINS FAITHFUL TO FRANCES HODGSON BURNETT'S MORBIDLY APPEALING CHILDREN'S STORY OF SORROW AND REDEMPTION THE FILMMAKERS HAVE BEAUTIFULLY RECREATED THE GARDEN THAT SAVES MARY FROM MISERY AS WELL AS THE GLOOMY ENGLISH HOUSEHOLD FROM WHICH THE YOUNG ORPHAN NEEDS TO ESCAPE IT'S A LOVELY FAMILY FILM 9308240047 930824 CBOT PLAN FOR POLLUTIONRIGHTS MARKET IS ENCOUNTERING PLENTY OF COMPETITION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IN THE BRAVE NEW WORLD WHERE AIR IS A COMMODITY AND THE RIGHT TO POLLUTE IT CAN BE BOUGHT AND SOLD THE CHICAGO BOARD OF TRADE HAD HOPED TO BECOME POLLUTION CLEARING HOUSE TO THE NATION BUT NOW A FEW AGGRESSIVE BROKERAGE FIRMS APPEAR TO BE STEALING AWAY THIS STRANGE NEW BUSINESS BY DEVELOPING A VIBRANT OFFEXCHANGE POLLUTIONRIGHTS MARKET OF THEIR OWN THIS MARKET IS A PRIVATEPLACEMENT MARKET WHERE CONTRACTS ARE HIGHLY CUSTOMIZED TO THE INDIVIDUAL NEEDS OF USERS SAYS JOHN B HENRY II PRESIDENT OF CLEAN AIR CAPITAL MARKETS ONE SUCH FIRM WE DON'T THINK WHAT THE BOARD OF TRADE IS DOING IS GOING TO FIT THE NEEDS OF THE INDUSTRY CONGRESS CREATED TODAY'S FASTGROWING POLLUTION MARKET BY AMENDING THE FEDERAL CLEAN AIR ACT TO REQUIRE THE NATION'S POWERGENERATING UTILITIES TO RADICALLY REDUCE THEIR OUTPUT OF SULFUR DIOXIDE THE MAIN POLLUTANT THAT CREATES ACID RAIN INSTEAD OF ACTUALLY CURTAILING POLLUTION HOWEVER PLANTS ARE ALLOWED TO BUY POLLUTION RIGHTS OR CREDITS EACH OF WHICH ENTITLES ITS HOLDER TO SPEW A TON OF SULFUR DIOXIDE ACROSS THE COUNTRY MANY UTILITIES ARE OPTING TO BUY CREDITS RATHER THAN CLEAN UP THEIR PLANTS MEANWHILE COMPANIES THAT DO REDUCE POLLUTION ARE SELLING THEIR CREDITS TO DIRTIER PLANTS CLEAN AIR CAPITAL MARKETS MR HENRY'S SMALL WASHINGTON DC FIRM HAS ACTED AS A BROKER IN ABOUT 10 SUCH TRANSACTIONS ARRANGING SALES OF RIGHTS TO SPEW 200000 TONS OF POLLUTION FOR 72 MILLION CANTOR FITZGERALD INC A BROKERAGE FIRM AND ENRON POWER SERVICES INC A UNIT OF ENRON CORP A NATURAL GAS CONCERN ARE JUMPING INTO THE MARKET BY PACKAGING POLLUTION RIGHTS IN VARIOUS WAYS AND MARKETING THEM TO POWER COMPANIES EMISSIONS EXCHANGE CORP A DENVER COMPANY IS ACTING AS A PROPRIETARY TRADER BUYING POLLUTION RIGHTS FOR ITS OWN ACCOUNT AND RESELLING THEM TO UTILITIES AND OTHERS THE CBOT'S FORAY HAS BEEN LIMITED DESPITE ITS GRANDIOSE GOAL OF LAUNCHING A FULLFLEDGED ENVIRONMENTAL MARKET IN CHICAGO THE EXCHANGE GAINED AN EARLY EDGE OVER ITS OFFEXCHANGE COMPETITORS BY WINNING APPROVAL FROM THE ENVIRONMENTAL PROTECTION AGENCY TO RUN AN ANNUAL AUCTION OF POLLUTION RIGHTS IN MARCH THE CBOT AUCTIONED 153010 TONS OF POLLUTION RIGHTS FOR ABOUT 21 MILLION SINCE THEN HOWEVER THE EXCHANGE HAS SUSPENDED PLANS TO RUN SUPPLEMENTAL PRIVATE AUCTIONS OF POLLUTION CREDITS UNTIL THE EPA DEVELOPS A SYSTEM TO MONITOR SUCH SALES A DELAY THAT GIVES THE EXCHANGE'S COMPETITORS TIME TO SOLIDIFY THEIR HOLD ON THE MARKET THE BOARD OF TRADE'S ULTIMATE GOAL IS TO LAUNCH FUTURES CONTRACTS BASED ON POLLUTION CREDITS POWER COMPANIES COULD USE THESE CONTRACTS EACH OF WHICH WOULD BE A COMMITMENT TO BUY OR SELL 25 CREDITS IN THE FUTURE TO PLAN COMPLIANCE WITH THE CLEAN AIR ACT CBOT SPOKESMAN MARK PROUT SAYS THE RAPID DEVELOPMENT OF THE OFFEXCHANGE POLLUTIONRIGHTS MARKET DOESN'T NECESSARILY ENDANGER THE EXCHANGE'S PLANNED FUTURES MARKET I DON'T THINK THAT POSES ANY THREAT TO US MR PROUT SAYS IF WE'RE CONVINCED THERE'S ENOUGH CASHMARKET ACTIVITY OUT THERE AT ANY LEVEL THEN WE COULD GO AHEAD AND SCHEDULE A LAUNCH FOR OUR FUTURES WE WOULD THEN BE ABLE TO SERVICE THAT MARKET WHICH WOULD HAVE PRICEDISCOVERY AND RISKMANAGEMENT NEEDS YET OFFEXCHANGE FIRMS ARE DRAINING POTENTIAL DEMAND FOR CBOT FUTURES CONTRACTS BY SETTING UP CASHFORWARD AGREEMENTS THAT WORK THE SAME WAY PROVIDING POWER COMPANIES WITH THE POLLUTION CREDITS THEY NEED FOR YEARS TO COME AS IN HUGE OVERTHECOUNTER DERIVATIVE MARKETS IN WHICH BANKS AND BROKERAGE FIRMS CUSTOMIZE PRODUCTS TO HELP COMPANIES MANAGE INTERESTRATE AND FOREIGNCURRENCY RISKS FIRMS ARE OFFERING PACKAGES OF POLLUTION RIGHTS THAT ARE MORE FLEXIBLE THAN THE GENERIC CREDITS THE CBOT WANTS TO SELL FOR EXAMPLE ENRON POWER SERVICES IS COUPLING SULFURDIOXIDE POLLUTION CREDITS WITH COMMITMENTS TO SUPPLY NATURAL GAS CANTOR FITZGERALD IS DEVISING A COMPUTERASSISTED SYSTEM TO MATCH BUYERS AND SELLERS OF CREDITS IN LONGTERM SWAPSTYLE AGREEMENTS AND CLEAN AIR CAPITAL MARKETS IS SELLING MULTIYEAR STREAMS OF POLLUTION RIGHTS ALL OF THESE APPROACHES COMPETE DIRECTLY WITH THE CBOT'S PLANNED FUTURES CONTRACTS AND FOR VARIOUS REASONS MANY IN THE POWERGENERATING INDUSTRY DOUBT THAT UTILITIES WOULD EMBRACE SUCH FUTURES IF THE CBOT LAUNCHED THEM AS AN INDUSTRY WE'RE STILL STRUGGLING WITH FUTURES CONTRACTS ON FINANCIAL INSTRUMENTS SAYS ERROLL B DAVIS JR PRESIDENT OF WISCONSIN POWER & LIGHT CO A UNIT OF WPL HOLDINGS INC I DON'T SEE THIS INDUSTRY RUSHING TO USE FUTURES CONTRACTS ON EMISSION CREDITS IN 1992 WISCONSIN POWER BECAME ONE OF THE FIRST US UTILITIES TO EXECUTE A POLLUTIONRIGHTS TRADE AGREEING TO SELL 10000 CREDITS TO THE TENNESSEE VALLEY AUTHORITY IN THAT TRANSACTION CLEAN AIR CAPITAL MARKETS ACTED AS A BROKER THEY BROUGHT THE DEAL TO US MR DAVIS SAYS BECAUSE WISCONSIN POWER LONG AGO SWITCHED TO LOWSULFUR COAL TO GENERATE ELECTRICITY ITS EMISSIONS OF SULFUR DIOXIDE ARE LOW AND THEREFORE IT HAS SURPLUS POLLUTION CREDITS TO SELL YET IT CHOSE NOT TO PARTICIPATE IN THE CBOT'S MARCH AUCTION ANOTHER POTENTIAL PROBLEM FOR THE CBOT'S PLANNED FUTURES MARKET IS THAT MANY UTILITIES NEED TO PLAN THEIR CLEAN AIR ACT COMPLIANCE STRATEGIES RIGHT AWAY NOT NEXT YEAR WHEN THE CBOT MAY LAUNCH ITS CONTRACTS MANY UTILITIES COULDN'T EVEN WAIT UNTIL MARCH WHEN THE CBOT HELD ITS AUCTION OF THE CREDITS THEMSELVES OUR COMPLIANCE PLAN IS BASED ALMOST TOTALLY ON PURCHASE OF CREDITS SAYS CRAIG NESBITT SPOKESMAN FOR ILLINOIS POWER CO ANOTHER BIG UTILITY THE PLAN WAS DUE BEFORE THE MARCH CBOT AUCTION TOOK PLACE SO WE COULDN'T WAIT FOR THE AUCTION WE HAD TO GO AHEAD AND ARRANGE TO BUY THESE CREDITS SO ILLINOIS POWER BOUGHT POLLUTION RIGHTS FROM THREE OTHER UTILITIES IN PRIVATE TRANSACTIONS IN TWO OF THE THREE DEALS CLEAN AIR CAPITAL MARKETS ACTED AS A BROKER THE CBOT'S MR PROUT SAYS A FUTURES MARKET COULD NEVERTHELESS BE USEFUL BECAUSE USING IT WOULD BE CHEAPER THAN USING A BROKER IN THE OFFEXCHANGE MARKET WHEN WE GET THE FUTURES UP AND RUNNING HE SAYS THESE UTILITIES WILL SEE THAT THE TRANSACTION COSTS AND BROKERAGE COMMISSIONS IN A COMPETITIVE ENVIRONMENT LIKE OUR MARKET WILL BE SUBSTANTIALLY LOWER 9308240046 930824 BUSINESS BRIEF SAVIN CORP REORGANIZATION PLAN IS FILED THAT CANCELS EXISTING STOCK SAVIN CORP SAID IT FILED A REORGANIZATION PLAN THAT IF APPROVED COULD PERMIT THE STAMFORD CONN OFFICE COPIER COMPANY TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS IN EARLY NOVEMBER SAVIN SAID THE PLAN WOULD GIVE ABOUT 80 OF ITS VOTING STOCK TO A GROUP COMPOSED OF ITS MAJOR CLAIMANTS INCLUDING ITS CURRENT MAJORITY SHAREHOLDER HCS TECHNOLOGY NV OF THE NETHERLANDS EXISTING PREFERRED AND COMMON STOCK WOULD BE CANCELED THE PLAN HAS THE SUPPORT OF THE UNSECURED CREDITORS COMMITTEE WILLIAM R KREHBIEL CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH FILED FOR CHAPTER 11 PROTECTION IN AUGUST 1992 SAID THE REORGANIZED COMPANY WOULD HAVE LESS THAN 13 MILLION IN DEBT 9308240045 930824 IPALCO CONCEDES DEFEAT IN BATTLE FOR PSI CONTROL PATH IS CLEARED FOR MERGER WITH CINCINNATI UTILITY AFTER FIVEMONTH FIGHT BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CARMEL IND THE BITTER AND PROTRACTED UTILITYINDUSTRY TAKEOVER BATTLE FOR CONTROL OF PSI RESOURCES INC ENDED ABRUPTLY AS IPALCO ENTERPRISES INC CONCEDED IT HAD FALLEN SHORT IN A CRITICAL PROXY FIGHT AND SAID IT WILL DROP ITS 173 BILLION HOSTILE TENDER OFFER IPALCO'S DECISION CLEARS THE WAY FOR PSI TO PROCEED WITH ITS MERGER WITH CINCINNATI GAS & ELECTRIC CO PSI CHOSE CG&E AS A MERGER PARTNER AFTER A METHODICAL AND LENGTHY SEARCH AND THEY ANNOUNCED THEIR PLANNED COMBINATION IN MIDDECEMBER SUCH MERGERS ARE EXPECTED TO BECOME INCREASINGLY COMMON AS THE ELECTRIC UTILITY INDUSTRY FACING PRESSURES FROM INCREASED COMPETITION SPAWNED BY DEREGULATION SEEKS WAYS TO CUT COSTS AND GAIN EFFICIENCIES THE PSICG&E MERGER STILL REQUIRES TWOTHIRDS APPROVAL BY SHAREHOLDERS OF THE CINCINNATIBASED UTILITY AND FACES SCRUTINY BY GOVERNMENT REGULATORS BUT JAMES ROGERS JR PSI'S CHIEF EXECUTIVE OFFICER AND ARCHITECT OF THE MERGER EXPRESSED CONFIDENCE THAT BOTH HURDLES WILL BE CLEARED AND THE COMBINATION CAN BE COMPLETED BY MID1994 THE ANNUAL MEETING WHICH PSI HAD DELAYED AS IT STRUGGLED TO AVOID IPALCO'S UNWANTED PURSUIT HAD BEEN EXPECTED TO GENERATE FIREWORKS ALTHOUGH ONLY A MINORITY OF THE PSI BOARD SEATS WERE UP FOR ELECTION THE VOTE HAD BEEN REGARDED AS A REFERENDUM TO DETERMINE THE OUTCOME OF THE CONTEST AND MANY OBSERVERS HAD CONSIDERED THE BALLOTING TO BE TOO CLOSE TO CALL AS THE INITIAL SPEAKER AFTER OPENING PRELIMINARIES MR HODOWAL HAD BEEN EXPECTED TO DELIVER HIS PITCH FOR IPALCO'S 3050ASHARE TENDER OFFER INSTEAD HE DEFLATED THE MEETING'S CHARGED ATMOSPHERE WITH A BRIEF AND UNEMOTIONAL STATEMENT THAT THE PROXY EFFORT HAD FALLEN SHORT AND THAT HE INTENDED TO RECOMMEND THAT THE BID BE DROPPED HE CONTINUED TO MAINTAIN THAT IPALCO BELIEVES A COMBINATION WITH PSI MAKES SENSE AND THAT SUCH INTEREST HASN'T DIMINISHED BUT LATER MR HODOWAL INDICATED IPALCO WILL FIGHT THE PSICG&E MERGER ONLY BY RAISING ISSUES WITH REGULATORY AGENCIES RATHER THAN THROUGH FURTHER TAKEOVER ATTEMPTS MR HODOWAL DIDN'T SPECIFY WHICH TWO LARGE SHAREHOLDERS HAD VOTED FOR THE PSI SLATE BUT HE SUGGESTED THEY WERE FMR CORP OF BOSTON PARENT OF FIDELITY INVESTMENTS THE MUTUALFUND GROUP THAT HAS A 999 STAKE IN PSI AND PRUDENTIAL INSURANCE CO OF AMERICA WITH A 7 STAKE AND WHICH HAS A LARGE UTILITY MUTUAL FUND SPOKESMEN FOR BOTH CONCERNS SAID THEIR UTILITYFUND MANAGERS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT ONE TAKEOVERSTOCK TRADER SAID HE BELIEVED MANY PSI HOLDERS HAD BEEN SWAYED BY THE COMPANY'S ALLOUT PUBLICRELATIONS CAMPAIGN WARNING THAT IPALCO'S BID COULDN'T BE APPROVED TRADERS SAID THE VOTE DIDN'T APPEAR AS CLOSE AS HAD BEEN EXPECTED BASED ON THEIR OWN SOUNDINGS AND IPALCO'S SPEEDY EXIT BY SOME ESTIMATES THE VOTE WAS 60 TO 40 AGAINST IPALCO THERE WAS SOME FEAR ONE TRADER ADDED THAT IF IPALCO HAD WON THE VOTE THE VALUE OF ITS OFFER MIGHT HAVE DECLINED SUBSTANTIALLY IF IPALCO'S STOCK FELL DUE TO THE FINANCIAL BURDEN OF THE ACQUISITION AS IT WAS IPALCO'S STOCK SURGED AFTER THE COMPANY CONCEDED DEFEAT RISING 125 TO 3750 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PSI'S STOCK FELL 125 CENTS TO 25 WHILE CINCINNATI GAS SHARES DECLINED 625 CENTS TO 2750 WITH VICTORY APPARENTLY IN HAND PSI'S MR ROGERS DIDN'T TRY VERY HARD TO HIDE HIS ANGER AT IPALCO FOR ATTEMPTING TO DERAIL HIS COMPANY'S MERGER WITH CG&E IN A REFERENCE TO THE MEANSPIRITED FIGHT THAT BROKE OUT BETWEEN IPALCO AND PSI HE RAILED AGAINST THE RUTHLESS WAR HE DISPLAYED A PAIR OF BOXING GLOVES WITH IPALCO'S NAME ON THE FRONT OF EACH AND SAID WE COULD HAVE SOLVED ALL THIS A LOT CHEAPER IF WE'D JUST GONE OUT BACK AND USED THESE HE NOTED HOWEVER THAT HE'S A LITTLE SMALLER' THAN THE 6FOOT5INCH MR HODOWAL PSI'S CHOICE OF A MERGER PARTNER ANGERED IPALCO WHOSE OPERATING TERRITORY OF THE INDIANAPOLIS AREA IS ENTIRELY SURROUNDED BY PSI'S SERVICE REGION IPALCO WHOSE GROWTH PROSPECTS MAY BE HURT BY YESTERDAY'S OUTCOME HAD MADE INFORMAL OVERTURES TO PSI OVER THE YEARS BUT NO CONCRETE TALKS HAD BEEN HELD IPALCO INITIALLY OFFERED 2650 A SHARE FOR PSI AND SUBSEQUENTLY BOOSTED IT TO 28 AND THEN TO 3050 PSI SAID IT SPENT BETWEEN 13 MILLION AND 16 MILLION TO FIGHT OFF IPALCO WHILE IPALCO IS SAID TO HAVE SPENT ABOUT 20 MILLION A WILD CARD FOR INVESTORS IS THE FACT THAT REGULATORS MUST CLEAR ANY COMBINATION AT A BOARD MEETING YESTERDAY AFTERNOON WHERE THEY TERMINATED THE HOSTILE TENDER OFFER FOR PSI IPALCO DIRECTORS APPOINTED FIVE NEW DIRECTORS THE DEFEATED NOMINEES FOR ELECTION TO PSI'S BOARD THEY ARE ROBERT A BORNS EDWIN J GOSS AND EARL B HERR JR ALL OF WHOM HAD RESIGNED FROM IPALCO'S BOARD IN MARCH TO RUN FOR ELECTION TO THE PSI BOARD AND REXFORD C EARLY AND MAX L GIBSON RANDALL SMITH IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9308240044 930824 INVESTORS RUSH TO REITS IN SIZZLING NEWISSUES MARKET BY RANDALL SMITH AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL REALESTATE DEVELOPERS AND WALL STREET SECURITIES FIRMS ARE SCRAMBLING TO ASSEMBLE DOZENS OF NEW REALESTATE INVESTMENT TRUSTS ONE OF THE HOTTEST AREAS OF WALL STREET'S NEWISSUE BOOM AT 532 BILLION THE AMOUNT OF REIT STOCK SOLD THIS YEAR IS TRIPLE THE TOTAL FOR ALL OF 1992 ACCORDING TO SECURITIES DATA CO IN THE FIRST THREE WEEKS OF AUGUST ALONE 18 BILLION IN REITS WAS SOLD ACCOUNTING FOR 32 OF ALL NEW STOCK ISSUES DEVELOPERS WHO HAVE BROUGHT REITS TO MARKET INCLUDE SOME OF THE BIGGEST NAMES IN THE BUSINESS FROM A ALFRED TAUBMAN TO SAM ZELL OTHERS SAID TO BE PREPARING OFFERINGS ARE EDWARD DEBARTOLO SR DONALD BREN AND NEAL BLUHM EVERY SINGLE REALESTATE ENTREPRENEUR UNLESS HE'S IN A COMA IS RUNNING AROUND WANTING TO FORM A REIT SAYS JON FOSHEIM A PRINCIPAL AT GREEN STREET ADVISERS A NEWPORT BEACH CALIF INSTITUTIONAL RESEARCH FIRM FORMED TO HOLD AND OPERATE REALESTATE ASSETS REITS DON'T PAY CORPORATE TAXES AS LONG AS THEY DISTRIBUTE 95 OF THEIR NET INCOME IN DIVIDENDS TO SHAREHOLDERS MANY LONGTIME DEVELOPERS NEED THE CAPITAL TO STAVE OFF FINANCIAL DISASTER OTHERS ARE SIMPLY SEIZING THE OPPORTUNITY TO RAISE MONEY ON FAVORABLE TERMS TO SCOOP UP BARGAINS SOME REALESTATE INDUSTRY VETERANS WARN THAT THE REIT CRAZE IS A BUBBLE BOUND TO POP IT'S ANOTHER WALL STREET PROMOTIONAL FIASCO THE REAL ESTATE ISN'T WORTH WHAT IT'S BEING SOLD FOR SAYS DISQUE DEANE FOUNDER OF CORPORATE PROPERTY INVESTORS A PRIVATE REIT WHICH HOLDS 5 BILLION OF PROPERTY MR DEANE SAYS REITS ARE BEING SNAPPED UP BY MOM AND POP INVESTORS UNINFORMED PEOPLE WHO ARE TOO ANXIOUS TO GET YIELD BUT THE REITS' PROSPECTIVE GROWTH RATE IS NOT THERE AND MANY OF THEM ARE PUNK PROPERTIES REALESTATE INVESTMENT CRAZES HAVE COME AND GONE IN THE 1970S REITS BLOSSOMED TO 20 BILLION THEN CRASHED IN THE 1980S SOME 70 BILLION OF PROPERTY PARTNERSHIPS WERE SOLD BEFORE TAX LAWS CHANGED AND VALUES COLLAPSED AS A RESULT REITS RETAIN SOMETHING OF A BAD NAME HISTORICALLY SAYS MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES IN SUMMIT NJ RICHARD RAINWATER A TEXAS INVESTOR WHO IS HIMSELF PLANNING TO SELL A PACKAGE OF SEVEN BUILDINGS IN A REIT SAYS PROPERTIES ARE MIGRATING INTO REITS BECAUSE OF AN UNUSUAL ARBITRAGE OR PRICE DISPARITY IN THE REALESTATE MARKET INSURANCE COMPANIES BANKS AND OTHER FINANCIAL INSTITUTIONS ARE DUMPING PROPERTIES AT PRICES WHICH OFFER BUYERS CASH YIELDS OF 9 OR MORE MR RAINWATER SAYS MANY OF THE PROPERTIES WERE TAKEN BACK IN FORECLOSURES WHEN THE FORMER OWNERS COULDN'T PAY THEIR DEBTS AFTER COMMERCIAL PROPERTY VALUES PLUNGED BY 30 TO 50 AT THE SAME TIME YIELDHUNGRY INDIVIDUAL INVESTORS WHO HAVE SEEN MONEYMARKET INTEREST RATES COLLAPSE TO 3 OR LESS ARE SNAPPING UP REITS AT PRICES THAT OFFER CASHDIVIDEND YIELDS OF 65 OR SO THE RESULT OF THE YIELD DIFFERENTIAL PROPERTIES WORTH 100 AT 9 YIELDS IN DISTRESS SITUATIONS CAN BE SOLD FOR THE EQUIVALENT OF 120 WHEN THEY BECOME PART OF REITS YIELDING 65 REITS' MARKET VALUE HAS ALREADY SOARED TO 25 BILLION TODAY FROM 6 BILLION THREE YEARS AGO THERE'S THIS GIANT INCREDIBLE MOVEMENT OF MASSES OF REAL ESTATE FROM THE HISTORIC PROVIDERS OF CAPITAL SAYS MR RAINWATER HIS PREDICTION HUNDREDS OF BILLIONS OF DOLLARS WILL ULTIMATELY BE TRANSFERRED TO THE PUBLIC MARKETS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS AGREES THAT REITS' MARKET VALUE COULD EVENTUALLY REACH 100 BILLION PARTLY BECAUSE PRIVATE DEVELOPERS WON'T BE ABLE TO OBTAIN THE LIBERAL NONRECOURSE FINANCING AVAILABLE IN THE 1980S REITS ARE ALREADY MOVING UP THE FOOD CHAIN OF INSTITUTIONAL REALESTATE OWNERS SAYS WILLIAM BRUEGGEMAN A CONSULTANT TO GOLDMAN SACHS & CO THE 20 BILLION VALUE OF PUBLIC EQUITY REITS COMPARES WITH 100 BILLION IN EQUITY REAL ESTATE OWNED BY PENSION FUNDS 41 BILLION BY INSURANCE COMPANIES 302 BILLION FOR FEDERAL AGENCIES 216 BILLION FOR BANKS AND 9 BILLION FOR SAVINGS AND LOANS THE RECENT BUDGET BILL LOOSENED RESTRICTIONS ON PENSIONFUND OWNERSHIP OF REITS AND MR BRUEGGEMAN BELIEVES ONEQUARTER OF THOSE PENSIONFUND DOLLARS MAY MIGRATE TO REITS BECAUSE OF THEIR LIQUIDITY DAVID J KOSTIN OF SALOMON BROTHERS INC SAYS INSURANCE COMPANIES PENSION FUNDS AND FOREIGN COMPANIES HAVE FADED FROM SIGHT AS DIRECT BUYERS WHILE REITS SPENT MORE THAN 1 BILLION ON ACQUISITIONS IN THIS YEAR'S FIRST HALF ALONE MR RAINWATER SAYS INVESTORS WHO POURED INTO 1980S PARTNERSHIPS THAT CRASHED WERE TRYING TOO HARD TO AVOID TAXES NOR HE ADDS WILL THE MARKET ACCEPT THE KIND OF REITS SPONSORED BY BANKS AND OTHER INSTITUTIONS THAT CRASHED IN THE 1970S AFTER MAKING BAD LOANS YET HE ACKNOWLEDGES THE CURRENT SITUATION WON'T LAST FOREVER WE ARE CLOSE TO THE MIDDLE OF A THREE TO FIVE YEAR WINDOW OF THIS ARBITRAGE AND LOWINTERESTRATE SITUATION HE SAYS BUT HE BELIEVES PUBLIC OWNERSHIP OF US COMMERCIAL PROPERTY CURRENTLY ONLY ABOUT 2 TO 3 COULD EVENTUALLY RISE TOWARD THE 25 LEVEL THAT PREVAILS IN EUROPE AND HONG KONG MEANWHILE THE WINDOW HAS DRAWN IN SOME BIGTICKET SPECULATORS ONE EXAMPLE IS KOHLBERG KRAVIS ROBERTS & CO THE LEVERAGED BUYOUT FIRM WHICH LAST MONTH FINANCED THE PURCHASE OF TWO RESORTS WITH SEVEN GOLF COURSES FOR 2764 MILLION FROM THE RESOLUTION TRUST CORP THE PROPERTIES MAY SOMEDAY WIND UP IN A REIT BILLIONAIRE INVESTOR DAVID MURDOCK CHAIRMAN OF DOLE FOOD CO IS SAID TO BE ASSEMBLING A BIG GROUP OF PROPERTIES THAT COULD BE TAKEN PUBLIC IN JUNE HE AGREED TO BUY 16 OFFICE BUILDINGS IN FOUR STATES FOR MORE THAN 200 MILLION FROM SUN CO IN PHILADELPHIA WALL STREET ITSELF HAS ALSO GEARED UP FOR REITS BIGTIME THE COMMANDING LEADER WITH A 45 SHARE OF THIS YEAR'S OFFERINGS IS MERRILL LYNCH & CO WHOSE RICHARD SALTZMAN HAS EXPLOITED THE FIRM'S HUGE SALES FORCE OF RETAIL BROKERS MR SALTZMAN SAYS MORE THAN 100 DEVELOPERS HAVE APPROACHED MERRILL ABOUT DOING OFFERINGS HE SAYS TYPICAL UNDERWRITING COMMISSIONS AND FEES FOR NEW REIT ISSUES RUN ABOUT 7 OF THE DEALS' VALUE ABOVE AVERAGE FOR INITIAL PUBLIC OFFERINGS REFLECTING THE COMPLEXITY AND DIFFICULTY OF PUTTING DEALS TOGETHER OTHER FIRMS ARE SCRAMBLING TO SECURE THEIR OWN POSITION MORGAN STANLEY GROUP INC ASSIGNED TOPRATED FINANCIAL SERVICES ANALYST ERIC HEMEL TO ANALYZE REITS THE FIRM HAS TOLD ITS INSTITUTIONAL CLIENTS REITS AREN'T JUST A FAD FOR INDIVIDUAL INVESTORS AND BARTON BIGGS ITS MARKET STRATEGIST RECENTLY TOLD CLIENTS COMMERCIAL REAL ESTATE HAS THE HIGHEST TOTAL PROJECTED RETURN OF ANY US ASSET CATEGORY PART OF THE DEMAND FOR REITS HAS BEEN DRIVEN BY THEIR RECENT PERFORMANCE AIDED BY FALLING INTEREST RATES AND THE SEARCH FOR YIELD FOR THE YEAR ENDED AUG 5 REALESTATE MUTUAL FUNDS SHOW A TOTAL RETURN OF 271 ACCORDING TO MR LIPPER AS INVESTORS HAVE PILED IN MANY REIT PRICES HAVE SURGED BEYOND THE UNDERLYING VALUE OF THEIR PROPERTIES A RECENT REPORT BY MORGAN STANLEY FOR EXAMPLE NOTED THAT AS OF MIDJULY KIMCO REALTY CORP WAS TRADING AT A 27 PREMIUM TO ITS LIQUIDATION VALUE W BLAKE BAIRD HEAD OF REIT UNDERWRITING AT DEAN WITTER REYNOLDS INC SAYS THE PRICE DISPARITY FUELING THE REIT BOOM COULD CONTINUE FOR ANOTHER YEAR OR TWO UNTIL PROPERTY PRICES GO UP OR SHORTTERM INTEREST RATES RISE REDUCING REITS' VALUE AT THEIR CURRENT YIELDS OTHER BANKERS BELIEVE DEMAND WILL COOL WHEN THEIR TOTAL RETURNS TURN NEGATIVE WHETHER BECAUSE OF RISING SHORTTERM INTEREST RATES FALLING PROPERTY PRICES REITS OVERPAYING FOR ASSETS OR THE ENTRY OF LOWERQUALITY COMPANIES SOME REITS HAVE ALREADY SLIPPED A BIT MARK CENTERS WHICH WENT PUBLIC MAY 26 AT 1950 HAS FALLEN TO 1850 AND EXCEL REALTY TRUST WHICH WENT PUBLIC AUG 5 AT 1975 IS DOWN TO 18625 I THINK THE BLOOM IS OFF THE ROSE RIGHT NOW SAYS MICHAEL OLIVER WHO MANAGES A 120 MILLION PORTFOLIO OF REITS FOR CHICAGOBASED PRA SECURITIES THE QUALITY OF THE DEALS IS OFF QUITE BADLY 9308240043 930824 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN OFFICIAL CHINESE BANKERS DENIED KNOWLEDGE OF A REPORT CITED IN A HONG KONG NEWSPAPER THAT ALLEGED 28 BILLION IN CHINESE STATE FUNDS WAS EMBEZZLED THE SOUTH CHINA MORNING POST'S SUNDAY EDITION QUOTED PEOPLE WHO SAID THEY HAD SEEN A SECRET REPORT BY PEOPLE'S BANK OF CHINA THE CENTRAL BANK DETAILING THE THEFT THE NEWSPAPER SAID 28 BILLION HAD DISAPPEARED IN THE PAST 18 MONTHS 10 BILLION OF WHICH WAS TAKEN OUT OF CHINA THE CENTRAL BANK DENIED KNOWLEDGE OF SUCH A THEFT AS DID THE BANK OF CHINA THE NATION'S FOREIGNEXCHANGE BANK SOME OF WHOSE OFFICIALS WERE INVOLVED THE MORNING POST SAID THE SIZE OF THE ALLEGED THEFT STARTLED FOREIGN BANKERS IN BEIJING BUT THEY STOPPED SHORT OF DISMISSING THE REPORT SAYING LOOSE MANAGEMENT OF CHINA'S FINANCES DURING THE RECENT REFORM DRIVE OPENED LOOPHOLES AND PROVIDED OPPORTUNITIES FOR SHADY DEALINGS THE MORNING POST REPORTED THAT THE REFORMS ALLOWED STATE BANKERS TO SET UP DUMMY COMPANIES AS A CONDUIT FOR MONEY DISPERSED AS LOANS JAPANESE COMPANIES ARE CUTTING CAPITAL INVESTMENT MORE DEEPLY THIS FISCAL YEAR THAN THEY HAD FORECAST AMID A SHARP STRENGTHENING OF THE YEN CAPITAL INVESTMENT PLANS OF 1544 FIRMS SURVEYED BY NIPPON CREDIT BANK IN LATE JULY SHOW A 3 DECLINE IN SPENDING ON PLANT AND EQUIPMENT THIS YEAR FOLLOWING LAST YEAR'S 65 DROP THE INVESTMENT LEVELS FOR THIS FISCAL YEAR WHICH ENDS MARCH 31 1994 ARE SLIGHTLY LOWER THAN THE COMPANIES PROJECTED IN FEBRUARY FOR NEXT YEAR COMPANIES PLAN ON A 08 CUT THE YEN'S RISE EATS INTO EXPORTERS' OVERSEAS REVENUES WHEN CONVERTED INTO JAPANESE CURRENCY IN A COMPLAINT FILED WITH THE EUROPEAN COMMUNITY COMMISSION SEVEN EUROPEAN AIRLINES CHALLENGED THE MONOPOLIES THAT SOME AIRPORT AUTHORITIES IN THE EC ALLOW IN SERVICES SUCH AS REFUELING AND UNLOADING BAGGAGE DUTCH CARRIER KLM CLAIMED THAT IN SPANISH AIRPORTS AS WELL AS IN MILAN AND FRANKFURT FOREIGN CARRIERS MUST USE THE SERVICES OF ONE AIRPORT HANDLING COMPANY WHICH DETERMINES THE COST AND QUALITY OF THE SERVICES IN SOME CASES KLM SAID MONOPOLIES' RATES ARE 30 TO 50 HIGHER THAN AT AIRPORTS WITH SEVERAL HANDLERS JOINING KLM'S COMPLAINT WERE AIR FRANCE ALITALIA BRITISH AIRWAYS LUFTHANSA SCANDINAVIAN AIRLINES SYSTEM AND SABENA RUSSIA BANNED ALCOHOL AND TOBACCO ADVERTISING ON RADIO AND TELEVISION AND IN NEWSPAPERS AND MAGAZINES AS PART OF A HEALTHCARE PACKAGE APPROVED BY THE SUPREME SOVIET THE LAW WHICH TOOK EFFECT LAST WEEK DREW LITTLE PUBLIC ATTENTION UNTIL IT WAS REPORTED YESTERDAY AND SEVERAL MOSCOW ADVERTISING AGENCIES THAT REPRESENT CIGARETTE AND LIQUOR COMPANIES WERE UNAWARE OF THE LAW IT WAS UNCLEAR WHETHER OUTDOOR ADVERTISEMENTS SUCH AS ON BILLBOARDS AND BUSES ARE BANNED HUNGARY IS CONSIDERING REVAMPING LAND LAWS TO ALLOW FOREIGNERS TO BUY FARM PROPERTY DIRECTLY RESTRICTIONS ON LAND USE ALSO WOULD BE LOOSENED ACCORDING TO A DRAFT REVISION OF THE LAW AIMED AT STIMULATING FOREIGN INVESTMENT IN AGRICULTURE HOWEVER THE IDEA OF SELLING HUNGARIAN SOIL TO FOREIGNERS HAS POLITICAL FALLOUT SUPPORTERS OF THE PROPOSAL HAVE BEEN DENOUNCED AS TRAITORS WHO WANT TO SCUTTLE PLANS TO PUT AGRICULTURE BACK INTO THE HANDS OF SMALL HUNGARIAN FARMERS WHO LOST THEIR PLOTS THROUGH FORCED COLLECTIVIZATION UNLIKE THE CZECH REPUBLIC AND SLOVAKIA HUNGARY ISN'T RETURNING ANY EXPROPRIATED PROPERTY TO FORMER OWNERS LOCUSTS INVADING VAST DESERT AREAS OF PAKISTAN AND INDIA POSE A THREAT TO VITAL COTTON CROPS IN THE NEXT SEVERAL WEEKS A UNITED NATIONS REPORT CONCLUDES THAT UNLESS THE OUTBREAK IS CONTROLLED IT COULD START A CYCLE OF PLAGUES LASTING SEVERAL YEARS LOCUSTS DESCENDED ON SINDH AND PUNJAB PROVINCES IN PAKISTAN AND ON NORTHWEST INDIA IN MIDJULY INTERNATIONAL DONORS HAVE BEEN ASKED FOR MATERIALS TO CONTROL THE OUTBREAK PAKISTAN'S WORST IN NEARLY THREE DECADES TRADE BETWEEN SOUTH KOREA AND CHINA FOR THE FIRST HALF OF THE YEAR TOTALED AN ESTIMATED 5 BILLION AND THE TWO COUNTRIES ARE EXPECTED TO DO MORE THAN 10 BILLION IN DIRECT AND INDIRECT TRADE THIS YEAR SOUTH KOREA'S DIRECT IMPORTS FROM CHINA STOOD AT 182 BILLION IN THE FIRST HALF WHILE DIRECT EXPORTS TO CHINA TOTALED 24 BILLION CHINA IS NOW SOUTH KOREA'S THIRD LARGEST TRADING PARTNER AFTER THE US AND JAPAN TRADE VOLUME IN 1992 ROSE 41 TO 82 BILLION THE TWO COUNTRIES OPENED DIPLOMATIC RELATIONS JUST A YEAR AGO BUT HAVE HAD INDIRECT TRADE SINCE 1985 SOUTH KOREAN INVESTMENT IN CHINA IS ALSO RISING AS COMPANIES TAKE ADVANTAGE OF CHEAP PRODUCTION BASES IN CHINA'S NORTHERN PROVINCES OF LIAONING JILIN AND SHANDONG INVESTMENT IN THE FIRST HALF OF 1993 TOTALED 630 MILLION RUSSIA WANTS TO REPAY 147 BILLION IT OWES SOUTH KOREA WITH MISSILES AND FIGHTER JETS SEOUL WANTS THE WEAPONS TO LEARN ABOUT NORTH KOREA'S MOSCOWSUPPLIED ARMS JAPANESE SALSA BAND ORQUESTA DE LA LUZ WON THE UN PEACE MEDAL FOR PROMOTING CULTURAL HARMONY VENETIAN GONDOLIERS OFFERED A REFUND AND AN APOLOGY TO A FRENCH COUPLE WHO COMPLAINED AFTER BEING CHARGED 340 FOR AN HOUR'S RIDE ALONG THE CITY'S CANALS 9308240042 930824 WHO'S NEWS FINANCE CHIEF RESIGNS AT KENNAMETAL INC FOR PERSONAL' REASONS LATROBE PA HENRY L DYKEMA RESIGNED AS CHIEF FINANCIAL OFFICER OF KENNAMETAL INC A MAKER OF CARBIDE PRODUCTS CERAMICS AND MACHINE TOOLS A COMPANY SPOKESMAN SAID THE RESIGNATION OF MR DYKEMA 53 YEARS OLD WAS HIS PERSONAL DECISION THE SPOKESMAN SAID HE DIDN'T KNOW WHAT MR DYKEMA WOULD BE DOING MR DYKEMA DIDN'T RESPOND TO PHONE CALLS KENNAMETAL SAID IT WILL LOOK OUTSIDE THE COMPANY FOR A SUCCESSOR JAMES E MORRISON THE COMPANY'S TREASURER WILL BE THE ACTING CHIEF FINANCIAL OFFICER THE SPOKESMAN SAID THE EXECUTIVE'S DEPARTURE IS UNRELATED TO INVESTIGATIONS INTO THE COMPANY'S DEALINGS WITH IRAQ AS PREVIOUSLY REPORTED INTERNAL COMPANY CORRESPONDENCE AND OTHER DOCUMENTS SHOWED KENNAMETAL DID BUSINESS WITH AN IRAQICONTROLLED COMPANY AFTER BAGHDAD'S INVASION OF KUWAIT IN AUGUST 1990 AND A SUBSEQUENT PRESIDENTIAL BAN ON ALL US TRADE WITH IRAQI AGENTS THE COMPANY SAID KENNAMETAL HAS BEEN CLEARED BY THE US JUSTICE DEPARTMENT ALTHOUGH IT ADDS THAT A DISGRUNTLED FORMER EMPLOYEE CONTINUES TO PURSUE THE MATTER 9308240041 930824 LEISURE & ARTS AN URBAN ARCHAEOLOGIST'S MANHATTAN PRIVY MYSTERY BY AMY GAMERMAN NEW YORK A MAN DRINKING MALT LIQUOR FROM A CAN PAUSED BY THE CHAINLINK FENCE AT THE BACKYARD OF THE LOWER EAST SIDE TENEMENT MUSEUM LOOKING FOR DINOSAURS HE CALLED DOWN TO JOAN GEISMAR AS SHE LABORED WITH A SPADE IN A VAULTLIKE TROUGH 12 FEET BELOW IF YOU FIND ANY BONES DOWN THERE THAT LOOK HUMAN THEY'RE MY RELATIVES LEAVE THEM ALONE BUT MS GEISMAR AND HER TEAM OF THREE URBAN ARCHAEOLOGISTS WEREN'T LOOKING FOR BONES DINOSAUR HUMAN OR OTHERWISE OR ROMAN COINS OR A STRONGBOX OF JEWELS THEY WERE AFTER REAL BURIED TREASURE TOILETS FROM THE JURASSIC PERIOD OF MANHATTAN PUBLIC SANITATION IF IT IS A SCHOOL SINK IT'S VERY EXCITING SAID MS GEISMAR WHO'S MADE HER NAME DIGGING UP THE OUTHOUSES OF OLD NEW YORK THE MUSEUM COULD RECONSTRUCT THE SCHOOL SINK AND THE WHOLE WORLD COULD KNOW SCHOOL SINKS AS PLUMBED OUTHOUSES WERE CALLED ARE SOMETHING OF A MISSING LINK IN THE HISTORY OF NEW YORK CITY SANITATION DESPITE THE NAME THEY HAD NOTHING TO DO WITH SINKS OR SCHOOLS THEY WERE COMMUNAL PRIVIES DESIGNED FOR SCHOOLS OF PEOPLE INTRODUCED IN THE 1880S TO MEET THE NEEDS OF BURGEONING TENEMENT NEIGHBORHOODS THEY WERE BUILT OVER WATERTIGHT VAULTS CONNECTED TO CITY SEWERS SO THEY COULD BE FLUSHED OUT PERIODICALLY OFTEN THEY WEREN'T SCHOOL SINKS WERE ONE OF THE MORE SORDID FACTS OF TENEMENT LIFE UNSURPRISINGLY NONE HAVE SURVIVED AS TREASURED LANDMARKS NOT A SINGLE ONE IS IN THE COLLECTION OF THE MUSEUM OF THE CITY OF NEW YORK THAT MAKES SCHOOL SINKS MORE PRECIOUS THAN DINOSAUR FOSSILS TO THE PEOPLE AT THE TENEMENT MUSEUM WHICH IS DEDICATED TO DOCUMENTING THE URBAN IMMIGRANT EXPERIENCE EXEMPLIFIED BY ITS OWN BUILDING AND NEIGHBORHOOD WHERE IMMIGRANTS HAVE TEEMED SINCE THE CIVIL WAR THE MUSEUM OCCUPIES AN 1863 TENEMENT AT 97 ORCHARD ST AN ADDRESS THAT SOME 10000 PEOPLE FROM MORE THAN 25 NATIONS CALLED HOME OVER THE YEARS IN ITS EARLY DAYS THE BUILDING HOUSED AN 1870S SALOON AND A PALM READER NAMED DORA MELTZER WHOSE PRINTED LEAFLET CIRCA 1890 WAS FOUND UNDER THE BASEMENT FLOOR WHEN IT COLLAPSED A FEW YEARS AGO BY THE TURN OF THE CENTURY AS MANY AS 16 PEOPLE WERE LIVING IN EACH OF ITS TINY APARTMENTS FOUR TO A FLOOR THE BUILDING WAS FINALLY CONDEMNED IN 1935 RATHER THAN REMODEL IT TO MEET NEW HOUSING CODES THE OWNER SEALED THE TENEMENT'S UPPER FLOORS THEY REMAINED SEALED UNTIL THE MUSEUM BECAME THE TENEMENT'S FINAL TENANT IN 1988 IT INHERITED A FIVESTORY TIME CAPSULE ALTHOUGH THE FIRST FLOOR HAS BEEN REMODELED AS A GALLERY THE WALLS OF THE TENEMENT'S ENTRYWAY ARE STILL COVERED IN 1905 BURLAP PAINTED TO LOOK LIKE LEATHER AND PAINT PEELS LIKE CONFETTI FROM THE PRESSEDTIN CEILING UP A STAIRCASE THE APARTMENTS WHICH HAVE BOARDEDUP WINDOWS AND NO ELECTRICITY ABOVE THE SECOND FLOOR ARE MUCH AS THE LAST TENANTS LEFT THEM IN ONE A SCALLOPEDGED CURTAIN STILL HANGS FROM ONE OF THE INTERIOR WINDOWS CUT INTO THE WALLS IN 1905 TO PROVIDE SOME LIGHT AND AIR THE CRAMPED THREEROOM APARTMENTS HAD ONLY ONE REAL WINDOW APIECE IN ANOTHER A DOORJAMB IS COVERED WITH A PENCILED INVENTORY LIST 25 JACKETS 20 DRESSES STRETCHING TO THE CEILING THAT AND THE PANTS MADETOORDER 150 SIGN FOUND IN THE APARTMENT SUGGEST IT WAS USED AS A TINY SWEATSHOP THE APARTMENTS ARE CURRENTLY OFFLIMITS TO THE GENERAL PUBLIC ALTHOUGH THE MUSEUM PLANS TO OPEN THE SECOND FLOOR EVENTUALLY IN THE MEANTIME STAFFERS ARE TREATING THE HOUSE LIKE AN ARCHAEOLOGICAL SITE DOCUMENTING THE MANY STRATA OF PAINT AND LINOLEUM STUDYING THE 20 LAYERS OF WALLPAPER THAT COAT THE WALL IN ONE ROOM AND COLLECTING ARTIFACTS IN TRAYS LABELED BY APARTMENT NUMBER THERE IS NO TRACE OF THE WOOD OUTHOUSES THAT TENANTS RELIED ON ALONG WITH THEIR CHAMBER POTS BEFORE INDOOR PLUMBING ARRIVED AT 97 ORCHARD BUT ACCORDING TO A 1902 RECORD FROM THE DEPARTMENT OF HOUSING A SCHOOL SINK ONCE STOOD IN THE COURTYARD THE MUSEUM IS EAGER TO RECONSTRUCT IT THIS IS PART OF THE HISTORY OF HOW PEOPLE LIVED SAID THE MUSEUM'S CURATOR ANITA JACOBSON WE WANT PEOPLE TO SEE THE TOILET FACILITIES IN THE BACKYARD THE WAY THEY USED TO BE ENTER MS GEISMAR THE EXCAVATOR OF SOME 17 CITY PRIVIES AND THE AUTHOR OF SUCH SCHOLARLY WORKS AS WHERE IS THE NIGHT SOIL THOUGHTS ON AN URBAN PRIVY MS GEISMAR A WOMAN OF A CERTAIN AGE WHO PROJECTS AN UPTOWN ELAN EVEN WHEN SHE'S COVERED IN DOWNTOWN DIRT VOLUNTEERED HER TIME FOR A TEST DIG IN 1991 IT TURNED UP THE TOP OF A BRICK WALL THAT LOOKED TO BE PART OF THE SCHOOL SINK'S VAULT IN JANUARY SHE RETURNED WITH A BACKHOE CLEARED THE YARD OF SOME 23 TREES AND SCOOPED UP ENOUGH DIRT TO EXPOSE THE UPPER PORTION OF THE ENTIRE BRICK TROUGH 12 FEET BY 3 1/2 FEET IN SIZE THIS MONTH FUELED BY A GRANT FROM POLAROID CORP MS GEISMAR RETURNED WITH HER TEAM TO EXCAVATE THE SITE THEIR FIRST JOB WAS TO CLEAR AWAY THE FOUR JUMBO BAGS OF GARBAGE THAT HAD COLLECTED IN THE YARD SINCE JANUARY THEN THEY STARTED TO DIG THE MAIN OBJECT OF MS GEISMAR'S SEARCH WAS A DRAIN THAT WOULD INDICATE BEYOND A DOUBT THAT THE TROUGH WAS A SCHOOL SINK SHE AND HER TEAM USED SPADES AND SHOVELS TO DIG OUT MOST OF THE FILL THAT HAD BEEN USED TO PLUG UP THE VAULT AS THEY WORKED THEIR WAY TO THE BOTTOM THEY SWITCHED TO TROWELS AND DUST BINS CAREFULLY SCOOPING UP DIRT AND THEN POURING IT THROUGH GRATED METAL SCREENERS WHAT THEY FOUND WAS VINTAGE 19THCENTURY TRASH MEAT BONES CLAM AND OYSTER SHELLS SOMEONE'S MEAL SHARDS OF 19THCENTURY CERAMIC BOTTLES BITS OF CROCKERY HANDPAINTED WITH DELICATE SPRIGS A CHILD'S MARBLE BUTTONS A THICK GLASS TILE WAS UNEARTHED THAT MAY PROVE TO BE A LATE19THCENTURY AMBROTYPE PHOTOGRAPH DIRT HAD ADHERED TO THE CENTER IN A NEAT SQUARE SUGGESTING SOME EMULSION BEHIND IT AND THE PIT WAS LITTERED WITH STONES THAT MIGHT ONCE HAVE BEEN USED TO LINE THE PRIVY THAT PREDATED THE SCHOOL SINK MS GEISMAR WAS AFTER WHAT SHE CALLED MEANINGFUL GARBAGE ARTIFACTS THAT COULD BE CONNECTED TO PEOPLE WHO ACTUALLY LIVED AT 97 ORCHARD SHE HIT PAYDIRT WITH A HEFTY CHUNK OF WHITE CHAMBER POT HERE IS OUR PRIMARY ARTIFACT SHE SAID RUBBING THE DIRT OFF WITH HER THUMB IT'S ACTUALLY A FAIRLY SMALL CHAMBER POT MAYBE IT'S A CHILD'S CHAMBER POT YOU FIND A LOT OF CHAMBER POTS IN PRIVIES PEOPLE THROW OUT THE BABY WITH THE BATHWATER BUT AFTER FOUR DAYS OF DIGGING THERE WAS STILL NO SIGN OF A DRAIN ALTHOUGH THE BARRELED FLOOR SLOPED PROMISINGLY TOWARD ONE END A LOW BRICK WALL A LATER ADDITION SEEMED TO BE IN THE WAY SO A JACKHAMMER WAS BROUGHT IN TO REMOVE IT REVEALING NO DRAIN AND A MISSING CHUNK IN THE WALL OF THE VAULT MS GEISMAR HAD A TRUE MANHATTAN PRIVY MYSTERY ON HER HANDS HOW COULD THIS BE A SCHOOL SINK IF THERE WAS NO CHANNEL FOR WATER IN OR OUT OF IT I'M A VERY UNHAPPY CAMPER SHE SAID IT'S REALLY A TREMENDOUS MYSTERY A FEW DAYS LATER SHE WAS STILL PUZZLING IT OVER MAYBE THE DRAIN RAN THROUGH THAT PART OF THE TROUGH THAT HAD BEEN KNOCKED OUT TO MAKE WAY FOR THE BRICK WALL OR PERHAPS THE PIPES RAN OVER THE TOP OF THE VAULT SHE'S DETERMINED TO FIGURE IT OUT THIS IS ABOUT HOW LIFE WAS FOR ORDINARY PEOPLE SHE SAID THIS IS SETTING THE RECORD STRAIGHT 9308240040 930824 INTERNATIONAL BRIEF COAL & ALLIED INDUSTRIES LTD EARNINGS INCREASED BY 23 FOR RECENTLY ENDED YEAR COAL & ALLIED INDUSTRIES LTD AN AUSTRALIAN COALMINING COMPANY 70OWNED BY CRA LTD SAID PROFIT FOR FISCAL 1993 ROSE 23 TO 597 MILLION AUSTRALIAN DOLLARS US404 MILLION FROM A486 MILLION SALES FOR THE YEAR ENDED JUNE 30 IMPROVED 6 TO A6243 MILLION FROM A YEAREARLIER A5876 MILLION AND PERSHARE EARNINGS ROSE 17 TO 97 AUSTRALIAN CENTS THE DIVIDEND WAS RAISED 17 TO 70 AUSTRALIAN CENTS COAL & ALLIED SAID IT ACHIEVED RECORD COAL PRODUCTION OF 111 MILLION METRIC TONS IN THE YEAR UP SLIGHTLY MORE THAN 1 FROM THE YEAREARLIER LEVEL A METRIC TON IS ABOUT 220462 POUNDS PROFIT BEFORE TAXES AND EXTRAORDINARY ITEMS ROSE 11 TO A807 MILLION FROM A YEAREARLIER A73 MILLION HOWEVER A ONETIME CHARGE OF A284 MILLION WEAKENED THE PRETAX RESULT TO A522 MILLION THE COMPANY RECORDED AN INCOMETAX BENEFIT OF A75 MILLION COMPARED WITH A YEAREARLIER TAX EXPENSE OF A243 MILLION 9308240039 930824 LEISURE & ARTS BOOKSHELF THE COSMOS CONTEMPLATED BY JIM HOLT IN ANCIENT TIMES THALES THE FIRST PHILOSOPHER POSED A SIMPLE QUESTION WHAT IS THE UNIVERSE MADE OF SOME 2500 YEARS LATER WE STILL CANNOT SAY OUR GALAXY THE MILKY WAY IS KNOWN TO CONTAIN AROUND 100 BILLION STARS OF WHICH THE SUN IS A SOMEWHAT PUNY EXAMPLE THE OBSERVABLE UNIVERSE IN TURN COMPRISES PERHAPS 100 BILLION GALAXIES LIKE THE MILKY WAY THAT ADDS UP TO A LOT OF MATTER MAINLY IN THE FORM OF HYDROGEN AND HELIUM WITH A SMATTERING OF THE HIGHER ELEMENTS NECESSARY FOR LIFE BUT RECENTLY WE HAVE BECOME AWARE THAT IT IS A MERE DROP IN THE COSMIC BUCKET EVIDENCE INDICATES THAT THE VAST PREPONDERANCE OF THE UNIVERSE'S TOTAL MASS AS MUCH AS 99 IS INVISIBLE TO US EVEN AS ITS GRAVITATIONAL POWER KEEPS GALAXIES FROM SPIRALING APART AND DICTATES THE ULTIMATE SHAPE OF SPACETIME HOW WE KNOW THAT THIS MYSTERIOUS DARK MATTER EXISTS AND WHAT IT MIGHT TURN OUT TO BE ARE THE ABSORBING SUBJECTS TAKEN UP BY MARCIA BARTUSIAK IN HER BEAUTIFULLY WRITTEN THROUGH A UNIVERSE DARKLY A COSMIC TALE OF ANCIENT ETHERS DARK MATTER AND THE FATE OF THE UNIVERSE HARPERCOLLINS 383 PAGES 2750 MS BARTUSIAK DESCRIBES THE FULL ARRAY OF DARKMATTER SUSPECTS WHICH RANGE FROM BROWN DWARFS TO MASSIVE NEUTRINOSAND GIVES ENTERTAINING BIOGRAPHICAL SKETCHES OF THE SCIENTISTS WHO STALK THEM AMONG THE MOST IMPRESSIVE FIGURES IN HER STORY ARE SEVERAL WOMEN WHO OVERCAME FEARSOME INSTITUTIONAL BARRIERS TO STAKE OUT BRILLIANT CAREERS IN ASTRONOMY IT WAS THE SUPERB DATA ASSEMBLED BY ONE OF THESE WOMEN VERA RUBIN THAT FORCED ASTROPHYSICISTS TO SERIOUSLY GRAPPLE WITH DARK MATTER IN THE FIRST PLACE CURRENTLY THE BEST HOPE FOR RESOLVING THE DARKMATTER PUZZLE IS HELD OUT BY WEAKLY INTERACTING MASSIVE PARTICLES OR WIMPS IF THESE PARTICLES EXIST THEN BILLIONS OF THEM ARE STREAMING THROUGH OUR BODIES EACH SECOND WITHOUT US FEELING A THING YET COLLECTIVELY THEY WOULD FURNISH ENOUGH GRAVITATIONAL MASS TO REVERSE THE EXPANSION OF THE UNIVERSE SO THAT THE COSMIC DRAMA WOULD CULMINATE IN A BIG CRUNCH RATHER THAN A BIG CHILL THOSE WHO DISLIKE THE IDEA OF OUR DESTINY BEING DICTATED BY WIMPS MIGHT PREFER TO PLACE THEIR BETS ON MASSIVE ASTROPHYSICAL COMPACT HALO OBJECTS THAT IS MACHOS WAGERERS WILL BE PLEASED TO LEARN THAT A COMPLETE SET OF ODDS ON THESE AND THE NUMEROUS OTHER DARKMATTER CONTENDERS WAS RECENTLY PUBLISHED IN NATURE MAGAZINE DEPENDING ON WHICH SCENARIO ULTIMATELY PREVAILS THE QUEST TO EXPLAIN DARK MATTER COULD LEAD TO AN UTTERLY NEW UNDERSTANDING OF THE COSMOS ON THE ORDER OF THE COPERNICAN REVOLUTION OR IT MAY JUST ADD MORE HUMDRUM DETAILS TO OUR PRESENT VIEW AS ONE ASTROPHYSICIST TOLD MS BARTUSIAK I'D LOVE TO HAVE THIS PROBLEM SOLVED IN MY SCIENTIFIC LIFETIME BUT MY GREATEST FEAR IS THAT THE SOLUTION WILL BE BORING NOT ALL ASTRONOMICAL MYSTERIES ARE DARK ONES THE EARTH'S TWIN PLANET VENUS FOR INSTANCE SHINES SO BRILLIANTLY THAT IT IS KNOWN AS THE EVENING STAR YET UNLIKE OUR OTHER PLANETARY NEIGHBORS IT IS SHROUDED FROM OUR VIEW BY AN OPAQUE LAYER OF CREAMY YELLOW CLOUDS POPULAR ASTRONOMY BOOKS FROM THE MIDDLE OF THE CENTURY OFTEN IMAGINATIVELY DEPICTED ITS SURFACE AS A LUSH SWAMP IN WHICH DINOSAURS DISPORTED THEMSELVES A VISION DISPELLED SINCE 1990 WHEN NASA'S MAGELLAN SPACECRAFT BEGAN ORBITING VENUS AND USING CLOUD PENETRATING RADAR SIGNALS TO MAP ITS SURFACE VETERAN NEW YORKER WRITER HENRY SF COOPER JR MINUTELY RECOUNTS THE MAGELLAN MISSION IN THE EVENING STAR VENUS OBSERVED FARRAR STRAUS & GIROUX 274 PAGES 22 AS A RESULT WE HAVE A DETAILED PICTURE OF THE FACE BEHIND THE VEIL IT TURNS OUT TO BE A RAVAGED ONE POCKMARKED BY VOLCANOES AND METEOR CRATERS WRINKLED BY TECTONIC SHIFTS VEINED WITH LAVA RIVERS CONDITIONS ARE MADE EVEN MORE INFERNAL BY A SURFACE TEMPERATURE OF 900 DEGREES HOT ENOUGH TO MELT LEAD THIS IS BECAUSE VENUS'S ATMOSPHERE CONSISTS ALMOST ENTIRELY OF HEAT TRAPPING CARBON DIOXIDE WITH A SOUPCON OF SULFURICACID VAPOR WHICH IS WHY THE AUTHOR CALLS THE PLANET THE PROTOTYPE FOR ALL OUR CURRENT FEARS OF THE GREENHOUSE EFFECT THE MAGELLAN CRAFT ITSELF RATHER MOSQUITOLIKE IN APPEARANCE HAD TO BE COBBLED TOGETHER OUT OF OLD PARTS LIKE A JALOPY BECAUSE OF BUDGETARY CUTS AND MR COOPER ENGAGINGLY RELATES THE CLEVER TRICKS NASA ENGINEERS USED TO COPE WITH THE ERRATIC PROBE'S WALKABOUTS AND THE DREADED LOS LOSS OF SIGNAL UNFORTUNATELY THE OCCASIONAL BITS OF DRAMA AND GEOLOGICAL ENLIGHTENMENT IN THE EVENING STAR ARE PADDED OUT WITH HEAPS OF UNSTRUCTURED REPORTAGE WHICH MAKES FOR LESS THAN ENTHRALLING READING ONE LESSERKNOWN BELIEF ABOUT VENUS UNCONFIRMED BY THE MAGELLAN MISSION IS THAT IT SHARES WITH EARTH THE ALTO PART IN THE HARMONIOUS MUSIC MADE BY THE MOVEMENTS OF THE CELESTIAL SPHERES SO THOUGHT THE GREAT 16THCENTURY ASTRONOMER JOHANNES KEPLER AND IT IS NOT SO ECCENTRIC A NOTION AS IT SOUNDS FOR AS JAMIE JAMES EXPLAINS IN THE MUSIC OF THE SPHERES MUSIC SCIENCE AND THE NATURAL ORDER OF THE UNIVERSE GROVE 277 PAGES 2095 THE IDEA OF THE COSMOS AS A GREAT MUSICALMATHEMATICAL UNITY DOMINATED THE THINKING OF GREAT SCIENTISTS AND COMPOSERS ALIKE FROM THE TIME OF PYTHAGORAS THROUGH THE COPERNICAN REVOLUTION TO THE BIRTH OF OPERA ONLY WITH THE ABERRANT IRRUPTION OF ROMANTICISM WAS THE MYSTICAL LINK BETWEEN MUSIC AND COSMOLOGY SEVERED ARGUES MR JAMES IN HIS WIDERANGING AND ELEGANTLY WRITTEN INTELLECTUAL HISTORY BY THE END OF IT YOU CAN ALMOST HEAR THE COSMIC MUSIC YOURSELF 9308240038 930824 TECHNOLOGY UNITED TECHNOLOGIES FINED 53 MILLION FOR SERIES OF ENVIRONMENTAL VIOLATIONS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE AIMED AT SENDING A STRONG MESSAGE TO ENVIRONMENTAL VIOLATORS THE US FINED UNITED TECHNOLOGIES CORP 53 MILLION FOR A SERIES OF ABUSES IN HANDLING AND DISCHARGING HAZARDOUS WASTES IN RECENT YEARS THE US ENVIRONMENTAL PROTECTION AGENCY AND THE DEPARTMENT OF JUSTICE SAID 37 MILLION OF THE FINE WAS LEVIED UNDER THE FEDERAL RESOURCE CONSERVATION AND RECOVERY ACT AND IS THE LARGEST CIVIL PENALTY EVER IMPOSED UNDER THE LAW THE REMAINING 16 MILLION PENALTY ON THE HARTFORD CONN COMPANY WAS FOR VIOLATIONS UNDER FEDERAL AND STATE CLEAN WATER ACTS IN AGREEING TO PAY THE FINES UNITED TECHNOLOGIES CHAIRMAN ROBERT F DANIELL SAID THE ATTITUDES AND PRACTICES THAT LED TO THESE VIOLATIONS WERE UNACCEPTABLE AND WE HAVE MOVED AGGRESSIVELY TO CHANGE THEM THE MAKER OF JET ENGINES AUTOMOTIVE PARTS AND AIRCONDITIONING AND HEATING SYSTEMS SAID THE GOVERNMENT PROBE HAS PROMPTED IT TO TAKE A CLOSER LOOK AT ITS MANUFACTURING PRACTICES AND THE MATERIALS THEY USE AS PART OF THE SETTLEMENT WITH THE GOVERNMENT THE COMPANY ALSO AGREED TO UNDERGO EXTENSIVE AUDITS OF ITS ENVIRONMENTAL PRACTICES UNTIL THE END OF THE DECADE THIS SETTLEMENT REFLECTS SEVERAL THEMES THAT WILL MARK ENVIRONMENTAL ENFORCEMENT IN THIS ADMINISTRATION SAID STEVEN A HERMAN EPA ASSISTANT ADMINISTRATOR FOR ENFORCEMENT HE SAID THE PENALTIES THE GOVERNMENT IMPOSES WILL BE MEANINGFUL AND THE AUDITS IT CONDUCTS WILL SEEK TO INSTITUTIONALIZE CORPORATE COMPLIANCE THE GOVERNMENT AGENCIES SAID THE COMPANY'S VIOLATIONS INCLUDED STORING HAZARDOUS WASTES WITHOUT PERMIT AND ADEQUATE RECORDKEEPING DISCHARGING POLLUTANTS WITHOUT A PERMIT OR AT LEVELS ABOVE THOSE ALLOWED BY PERMITS AND DISCHARGING WASTE WATER THAT WASN'T ADEQUATELY TREATED INTO A PUBLICLY OWNED TREATMENT PLANT THE VIOLATIONS OCCURRED AT SEVEN PLANTS BELONGING TO THE COMPANY'S PRATT & WHITNEY JET ENGINE UNIT AND SEVERAL OTHER COMPANY FACILITIES IN CONNECTICUT INCLUDING UNITED TECHNOLOGIES' RESEARCH CENTER IN EAST HARTFORD MANY OF THE PLANTS ARE LOCATED ALONG THE CONNECTICUT RIVER THE WASTES CONTAINED SOLVENTS PAINT THINNERS AND SLUDGE DEGREASING COMPOUNDS AND A NUMBER OF OTHER TOXIC CHEMICALS THE COMPANY SAID IN THEIR PREPARED STATEMENT THE GOVERNMENT AGENCIES SAID UNITED TECHNOLOGIES' WIDESPREAD SERIOUS AND REPEATED VIOLATIONS COULD HAVE BEEN PREVENTED IF PROPER COMPLIANCE PROCEDURES HAD BEEN IN PLACE THE EPA SAID IT WILL MONITOR AND CONTINUALLY AUDIT ENVIRONMENTAL COMPLIANCE AT 26 UNITED TECHNOLOGIES PLANTS INCLUDING THE ONES ALREADY CITED FOR VIOLATIONS THE AUDIT ONE OF THE MOST EXTENSIVE EVER AGREED TO IN AN ENFORCEMENT ACTION IS DESIGNED TO FORCE THE COMPANY TO UNDERTAKE WIDESPREAD CHANGES TO ACHIEVE COMPLIANCE SAID PAUL G KEOUGH EPA ACTING REGIONAL ADMINISTRATOR MR DANIELL ACKNOWLEDGED IN A LETTER TO EMPLOYEES FOLLOWING THE GOVERNMENT ACTION THAT EMPLOYEE TRAINING FOR ENVIRONMENTAL AWARENESS AND COMPLIANCE AT THE COMPANY HASN'T BEEN ADEQUATE URGING MORE EMPLOYEE INVOLVEMENT HE SAID THERE SHOULD BE NO NEED FOR FURTHER WAKEUP CALLS FROM THE GOVERNMENT FRANK MCABEE UNITED TECHNOLOGIES' SENIOR VICE PRESIDENT FOR ENVIRONMENT AND BUSINESS PRACTICES SAID THAT IN 1990 THE COMPANY PUT IN PLACE A COMPREHENSIVE SYSTEM TO EVALUATE MANUFACTURING PROCESSES WITH AN AIM TO REDUCE POLLUTANTS THIS SETTLEMENT HAS GIVEN US IMPETUS TO MOVE THAT PROCESS EVEN FASTER HE SAID 9308240037 930824 ECONOMY TAX CREDIT TO INCREASE HIRING OF POOR IS FOUND BY US OFFICIAL TO WASTE FUNDS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A TAX CREDIT TO BOOST THE HIRING OF LOWINCOME PEOPLE WASTES FEDERAL FUNDS BY PROVIDING BREAKS TO BIG FASTFOOD AND RETAIL EMPLOYERS THAT WOULD HAVE HIRED SUCH WORKERS ANYWAY THE LABOR DEPARTMENT'S INSPECTOR GENERAL SAID EMPLOYERS CAN TAKE A 2400 TAX CREDIT FOR EACH TARGETED WORKER MOSTLY THE POOR THEY HIRE CONGRESS AND THE WHITE HOUSE EARLIER THIS MONTH REINSTATED THE TAX CREDIT UNTIL THE END OF 1994 AT AN ESTIMATED COST OF 273 MILLION IN THE FISCAL YEAR STARTING OCT 1 AND AN ADDITIONAL AMOUNT THE FOLLOWING YEAR BUT THE CREDIT APPEARS TO BENEFIT UNITS OF LARGE NATIONAL FASTFOOD CHAINS AND OTHERS FOR HIRING PEOPLE THEY WOULD HAVE EMPLOYED IN ANY EVENT THE INSPECTOR GENERAL SAID THE TAXCREDIT SAVED EMPLOYERS AN ESTIMATED 45 BILLION BETWEEN 1980 AND 1990 THE TARGETED JOBS TAX CREDIT AS THE TAX PROVISION IS CALLED MAY BE AMONG THE MOST WASTEFUL OF ALL PROGRAMS THE KIND WHERE THE FEDERAL GOVERNMENT GETS INVOLVED WHEN PEOPLE WOULD HAVE DONE SOMETHING ANYWAY SAID GERALD PETERSON ASSISTANT INSPECTOR GENERAL FOR AUDIT AT THE LABOR DEPARTMENT HOW CAN YOU BE MORE WASTEFUL THAN THAT AT A TIME WHEN THE CLINTON ADMINISTRATION IS EXAMINING HOW TO REINVENT GOVERNMENT THIS TAX CREDIT APPEARS TO BE A GOOD ONE TO CUT MR PETERSON SAID IT SEEMS SO CLEAR WE MAY BE WASTING SOME MONEY HE SAID THERE DOESN'T SEEM LIKE A LOT OF GRAY HERE THE INSPECTOR GENERAL'S STUDY USED ALABAMA AS ITS TEST SITE EMPLOYERS WHO TOOK THE CREDIT SAID THAT EVEN IF THEY HADN'T HAD THE TAX SUBSIDY THEY WOULD HAVE HIRED 95 OF THE COOKS ORDERTAKERS JANITORS AND OTHERS THAT THEY EMPLOYED COMPANIES THAT CLAIM THE SUBSIDY MOSTLY LARGE NATIONAL CORPORATIONS TYPICALLY REQUIRE A STEADY STREAM OF WORKERS TO FILL LARGE NUMBERS OF HIGHTURNOVER JOBS MR PETERSON WROTE TO DOUGLAS ROSS ASSISTANT SECRETARY FOR THE LABOR DEPARTMENT'S EMPLOYMENT AND TRAINING ADMINISTRATION FEDERAL FUNDS WERE UNNECESSARY BECAUSE THE EDUCATIONAL AND SKILL LEVEL REQUIREMENTS OF AVAILABLE JOBS MATCHED THOSE OF THE TARGET GROUPS IN ADDITION THE REPORT SAYS THE CREDIT DIDN'T DO MUCH TO RAISE ENTRYLEVEL WORKERS' LONGTERM EMPLOYMENT PROSPECTS THE TYPE OF JOB SUBSIDIZED IN PART BY FEDERAL TAX BREAKS OFTEN APPEARED TO BE ONE MORE LOWSKILLED LOWWAGE JOB IN A SUCCESSION OF SIMILAR JOBS IN A WORKER'S EMPLOYMENT HISTORY THE REPORT SAID THE AGENCY PLANS TO EXPAND ITS STUDY TO LOOK AT THE PROGRAM'S RESULTS NATIONALLY MR PETERSON SAID HE DOESN'T EXPECT THE FINDINGS TO BE MUCH MORE PROMISING BUT LABOR DEPARTMENT OFFICIALS ARE TAKING A WAITANDSEE ATTITUDE ALTHOUGH THE ALABAMA STUDY RAISES SOME QUESTIONS THE LABOR SECRETARY IS GOING TO WAIT FOR THE NATIONAL AUDIT WHICH WILL GIVE A MORE DEFINITIVE REPORT A SPOKESWOMAN FOR THE AGENCY SAID MR PETERSON BROUGHT THE EARLY RESULTS OF THE STUDY TO CAPITOL HILL EARLIER THIS YEAR CONGRESS DECIDED TO APPROVE ADDITIONAL FUNDS FOR THE TAX BREAK DESPITE THE NEW DATA BUT DIDN'T MAKE THE CREDIT PERMANENT AS THE CLINTON ADMINISTRATION PROPOSED 9308240036 930824 BUSINESS BRIEF KETEMA INC ALUMINUM BRANCH TO BE SOLD FOR 10 MILLION TO COLUMBIA KETEMA INC DENVER SAID IT AGREED TO SELL ITS ALUMINUM EXTRUSION DIVISION TO PRIVATELY HELD COLUMBIA ALUMINUM CORP FOR ABOUT 10 MILLION KETEMA A MANUFACTURER OF PRODUCTS FOR THE PROCESS INDUSTRIAL AND AEROSPACE MARKETS SAID IT WILL RECEIVE 190900 SHARES OF ITS STOCK CURRENTLY HELD BY VANCOUVER WASHBASED COLUMBIA AS PARTIAL PAYMENT FOR THE DIVISION IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE KETEMA'S SHARES CLOSED AT 1025 UP 25 CENTS KETEMA SAID THAT IT PROVIDED A SHORTTERM LOAN TO COLUMBIA TO COVER THE REST OF THE PURCHASE PRICE 9308240035 930824 BUSINESS BRIEF CENTERIOR ENERGY CORP MORE STAFFERS THAN EXPECTED TAKE EARLYRETIREMENT OFFER CENTERIOR ENERGY CORP INDEPENDENCE OHIO SAID IT WILL TAKE A THIRDQUARTER CHARGE OF 110 MILLION TO 135 MILLION BECAUSE A GREATERTHANEXPECTED NUMBER OF WORKERS ACCEPTED EARLYRETIREMENT INCENTIVES THE UTILITY HOLDING COMPANY SAID 1514 WORKERS OR 18 OF ITS WORK FORCE ACCEPTED EARLY RETIREMENT IN MARCH CENTERIOR SAID IT EXPECTED TO CUT ITS WORK FORCE BY 1200 AND TAKE A CHARGE OF 20 MILLION CENTERIOR ALSO SAID IT WILL RECOGNIZE SOME OF ITS 70 MILLION IN POSTRETIREMENT BENEFIT OBLIGATIONS IN THE THIRD QUARTER BECAUSE OF THE ITEMS THE COMPANY EXPECTS A LOSS IN THE PERIOD IN THE YEAREARLIER QUARTER CENTERIOR REPORTED A PROFIT OF 122 MILLION OR 86 CENTS A SHARE THE COMPANY SAID THE EARLYRETIREMENT PROGRAM WILL SAVE 90 MILLION TO 100 MILLION ANNUALLY 30 MILLION MORE THAN ANTICIPATED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CENTERIOR CLOSED UNCHANGED AT 1775 9308240034 930824 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED AUG 20 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER DADE COUNTY FLA WILL PARTIALLY REDEEM ON OCT 1 1993 ITS SEAPORT REVENUE BONDS SERIES 1978 DUE OCT 1 2000 CHEMICAL BANK NEW YORK IS PAYING AGENT MANASSAS PARK VA CALLS FOR PARTIAL REDEMPTION ON SEPT 23 1993 THE FOLLOWING PUBLIC IMPROVEMENT BONDS SERIES 1983 DUE JUNE 1 OF THE INDICATED YEAR 125000 PRINCIPAL AMOUNT OF ITS 85 BONDS DUE 1994 150000 EACH OF 85 BONDS DUE 199596 150000 EACH OF 875 BONDS DUE 199798 AND 200000 OF 875 DUE 1999 THE CITY WILL ALSO REDEEM 100000 PRINCIPAL AMOUNT EACH OF ITS 84 AND 85 SERIES 1980 GENERAL OBLIGATION SCHOOL BONDS DUE MAY 15 1994 AND 1995 RESPECTIVELY SIGNET TRUST CO RICHMOND VA IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON SEPT 20 1993 ITS 875 DEBENTURES SERIES CB1996C DUE SEPT 20 1996 JERSEY CENTRAL POWER & LIGHT CO WILL REDEEM ON SEPT 17 1993 ITS 8 AND 812 CUMULATIVE PREFERRED STOCK CHEMICAL BANK NEW YORK IS TRANSFER AGENT 9308240033 930824 CREDIT MARKETS TREASURY NOTES AND BONDS END NARROWLY MIXED AS TRADERS LACK NEWS AND AWAIT US AUCTIONS BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITHOUT ANY NEWS TO GUIDE TRADERS PRICES OF US TREASURY NOTES AND BONDS ENDED NARROWLY MIXED THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/8 POINT OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 100 11/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 622 FROM 621 ON FRIDAY THE PRICE OF THE 10YEAR NOTE ROSE 1/32 TO 101 2/32 TO YIELD 560 DOWN FROM 561 ON FRIDAY THAT IS THE LOWEST YIELD ON THE 10YEAR NOTE SINCE APRIL 1971 PLAYERS WERE BIDING TIME YESTERDAY AWAITING THE GOVERNMENT'S AUCTION OF NEW TWOYEAR NOTES TODAY AND FIVEYEAR NOTES TOMORROW THE MARKET WAS VERY QUIET ALL ACROSS THE SPECTRUM SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO THERE WAS JUST AN ABSENCE OF NEWS DEVELOPMENTS TRADERS SAID IT IS ONLY NATURAL THAT THE MARKET CONSOLIDATES AFTER ITS DRIVE TO 16YEAR LOWS FOR 30YEAR BOND YIELDS BUT WHILE THE BUYING FRENZY HAS ABATED UNDERLYING SENTIMENT REMAINS POSITIVE AND PRICES ON TREASURYS ARE SEEN AS UNLIKELY TO DROP MUCH ANYTIME SOON FOR THE MOMENT WE'RE ON SOLID FOOTING SAID MR LEUZZI WE'RE ESSENTIALLY LOOKING AT A FUNDAMENTAL ECONOMIC BACKDROP THAT UNDERPINS THE YIELD STRUCTURE THAT WE HAVE BEFORE US STEVE NOTHERN A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES CO ARGUED THAT INTEREST RATES ARE INDEED AT SUSTAINABLE LEVELS PEOPLE HAVE BEEN RATCHETING DOWN THEIR INFLATION EXPECTATIONS MR NOTHERN SAID IF YOU HAD ASKED PEOPLE AT MIDYEAR THEIR EXPECTATIONS FOR THE CONSUMER PRICE INDEX MIGHT HAVE CENTERED ON OVER 3 BUT THEY ARE BEGINNING TO REVISE THOSE EXPECTATIONS DOWN TO AROUND 25 TO 3 PROSPECTS FOR GROWTH ARE ALSO BEING RATCHETED DOWN SAID MR NOTHERN THE ECONOMIC PERFORMANCE IN THE SECOND QUARTER WAS A LITTLE BIT DISAPPOINTING AND IT'S DIFFICULT TO MAKE A CASE FOR A VERY ROBUST SECOND HALF EXPECTATIONS FOR MODEST GROWTH AND SUBDUED INFLATION ARE CREATING A FAVORABLE ENVIRONMENT FOR FIXEDINCOME SECURITIES MR NOTHERN SAID BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE RETURN OF FIXEDINCOME INVESTMENTS IN ADDITION TO THE BULLISH FUNDAMENTAL BACKDROP THE MARKET CONTINUES TO BE SUPPORTED BY THE SPECIAL CONDITIONS THAT HAVE EVOLVED AMONG LONGTERM TREASURY SECURITIES THAT'S PARTLY BECAUSE THE GOVERNMENT HAS SHIFTED TO SEMIANNUAL AUCTIONS OF THE LONG BOND AND REDUCED THE AMOUNT OF 30YEAR BONDS IT WILL SELL EACH YEAR WHILE ACKNOWLEDGING THAT THE BENCHMARK 625 30YEAR BOND IS A SPECIAL CASE TRADERS SAID THE SCARCITY PREMIUM THAT HAS BEEN TACKED ONTO THE BOND HAS ALSO CONTRIBUTED TO KEEPING SENTIMENT FOR THE ENTIRE MARKET ON THE BULLISH SIDE IN THE CASE OF THIS WEEK'S AUCTIONS THE COMBINATION OF THE SOLID TECHNICAL CONDITION OF THE MARKET AND BULLISH FUNDAMENTALS HAS PREVENTED TRADERS FROM PUSHING YIELDS SIGNIFICANTLY HIGHER ON THE WHENISSUED TWOYEAR AND FIVEYEAR NOTES TYPICALLY TRADERS WILL SELL SECURITIES AND FORCE YIELDS UP AHEAD OF AN AUCTION AS A WAY OF MAKING THOSE ISSUES MORE ATTRACTIVE TO POTENTIAL BUYERS AND MAKING THEM CHEAPER FOR WALL STREET FIRMS TO UNDERWRITE PEOPLE HAVE BEEN RELUCTANT TO SELL ANYTHING BECAUSE OF ALL THE ATTENTION THAT HAS BEEN ON THE BOND SAID MR LEUZZI OF WARBURG THEY ARE SITTING THERE SO MESMERIZED BY THE BOND THAT WHEN THE BOND GOES UP PEOPLE PUSH UP PRICES OF OTHER MATURITIES THE YIELD ON THE WHENISSUED TWOYEAR NOTE STOOD AT 398 LATE YESTERDAY UP JUST 002 PERCENTAGE POINT FROM LAST WEDNESDAY WHEN THE 16 BILLION OFFERING WAS ANNOUNCED THE YIELD ON THE WHENISSUED FIVEYEAR NOTE FINISHED AT 499 UP 002 PERCENTAGE POINT FROM LAST WEDNESDAY TRADERS SAY THE YIELD OF LESS THAN 4 FOR THE TWOYEAR NOTE AND THE YIELD OF LESS THAN 5 FOR THE FIVEYEAR NOTE ARE MORE EVIDENCE OF THE MARKET'S BULLISH TONE ANTICIPATION OF A RUSH OF BUYING OF SHORT AND INTERMEDIATE SECURITIES BY MUNICIPALITIES WAS ALSO CITED AS PROPPING UP THOSE SECTORS OF THE YIELD CURVE THAT BUYING IS EXPECTED TO COME FROM STATE AND LOCAL GOVERNMENTS REFUNDING OLDER HIGHERINTEREST DEBT BY ISSUING NEW SECURITIES BUT UNTIL THE OLDER DEBT IS CALLABLE THE PROCEEDS FROM THE NEW ISSUANCE ARE KEPT IN TREASURYS MUNICIPALITIES ARE EXPECTED TO BRING ABOUT 45 BILLION WORTH OF NEW DEBT TO MARKET THIS WEEK THE BULK OF WHICH SHOULD BE REFUNDING ISSUES BUT THE MARKET MAY BE GETTING TOO CONFIDENT SAID MR NOTHERN PEOPLE ARE PRETTY COMPLACENT ABOUT THE MARKET'S ABILITY TO ABSORB THE TWOYEAR AND FIVEYEAR ISSUES HE SAID HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED AUG 26 THE 13WEEK BILLS MATURE NOV 26 1993 AND THE 26WEEK BILLS MATURE FEB 24 1994 TWO BORROWERS OPTED NOT TO PROCEED WITH OFFERINGS IN THE CORPORATE BOND MARKET YESTERDAY FOR DIFFERING REASONS CORNING INC CANCELED PLANS TO SELL 100 MILLION OF 30YEAR PAPER IT WAS REPORTEDLY MARKETING EARLY IN THE SESSION ALTHOUGH THE GLASS MAKER AND LABORATORYSERVICES CONCERN DID ISSUE 100 MILLION OF 10YEAR NOTES ALSO THE FEDERAL HOME LOAN BANK SYSTEM CANCELED PLANS TO SELL 100 MILLION OF A COMPLEX TYPE OF SECURITY DESPITE HOLDING A COMPETITIVE BID INVESTMENTGRADE TRADING WAS QUIET THROUGHOUT THE DAY WITH SPREADS REMAINING UNCHANGED IN THE JUNK BOND MARKET SECONDARY TRADING WAS ALSO QUIET WITH PRICES REMAINING UNCHANGED CORNING AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE THE ONLY ISSUERS IN THE CORPORATE MARKET DURING THE SLEEPY SESSION FANNIE MAE BROUGHT AN OFFERING TOTALING 300 MILLION OF 10YEAR NOTES THROUGH ITS UNDERWRITERS CORNING SCOUTED THE MARKET FOR INVESTORS IN ITS PLANNED OFFERING OF 100 MILLION OF 30YEAR NOTES AND ACCORDING TO MARKET SOURCES SAW THE PLANNED YIELD JUMP TO UNCOMFORTABLE LEVELS ACCORDING TO ONE INVESTOR THE COMPANY HAD ORIGINALLY HOPED FOR A SPREAD OF ABOUT 055 PERCENTAGE POINT OVER THE 30YEAR TREASURY ISSUED IN FEBRUARY BUT THE SPREAD WIDENED TO 065 PERCENTAGE POINT YESTERDAY BEFORE THE COMPANY DECIDED FINALLY THAT THE YIELD WAS GOING TOO HIGH MARKET SOURCES SAID WE WERE JUST EXPLORING THE PRICING ON A 30YEAR ISSUE A COMPANY SPOKESMAN SAID THE COMPANY DIDN'T GET THE PRICE INDICATIONS IT WANTED SO IT DECIDED NOT TO GO THROUGH WITH A DEAL HE EXPLAINED ONE INVESTOR SAID THAT THE CORNING 30YEAR DEAL WOULD HAVE BEEN ATTRACTIVE AT THE 065 PERCENTAGE POINT LEVEL BECAUSE CORNING HAS STRONG CREDIT AND IS AN INFREQUENT ISSUER CORNING'S 30YEAR DEAL IF IT HAD BEEN EXECUTED WOULD HAVE BEEN THE FIRST RECENT OFFERING TO BE PRICED OFF OF THE 30YEAR TREASURY BOND ISSUED IN FEBRUARY INSTEAD OF THE 30YEAR BOND ISSUED EARLIER THIS MONTH BOND INVESTORS HAVE BEEN CONFUSED ABOUT WHICH BOND IS THE MOST ACCURATE REFLECTION OF THE MARKET THE PROBLEM HAS ARISEN BECAUSE THERE IS A GAP OF ABOUT 015 PERCENTAGE POINT BETWEEN THE YIELDS OF THE TWO BOND ISSUES INVESTORS CITING THE NEW BOND'S VOLATILITY AND LOWER YIELD HAVE BEEN TRADING SECURITIES IN THE SECONDARY MARKET USING THE OLDER BOND AS THE BENCHMARK HOWEVER LAST WEEK NEW ISSUES WERE PRICED RELATIVE TO THE NEW 30YEAR BOND AS A RESULT MANY OF THE OFFERINGS WERE NOT COMPLETELY SOLD LEAVING THE INVESTMENT BANKS WITH PAPER ON THEIR HANDS SYNDICATE OFFICIALS SAID ONE OFFICIAL SPECULATED THAT OF THE ALMOST 4 BILLION OF NEW DEBT SOLD LAST WEEK SLIGHTLY LESS THAN 1 BILLION REMAINS UNSOLD THUS A MORE CONSERVATIVE ATTITUDE MIGHT PREVAIL THIS WEEK AND 30YEAR DEBT IS EXPECTED TO BE PRICED OFF THE OLD TREASURY THE SYNDICATE OFFICIAL ADDED CORNING DID HOWEVER PRICE 100 MILLION OF 10YEAR NOTES AT 99258 TO YIELD 61 THE NONCALLABLE NOTES ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP PRICES OF MUNICIPAL BONDS ENDED GENERALLY UNCHANGED TO 1/4 POINT LOWER IN SLOW TRADING ALTHOUGH THERE HASN'T BEEN MUCH BUYING DURING THE LAST FEW SESSIONS MUNICIPAL SPECIALISTS SEE THE LULL AS LITTLE MORE THAN A CONSOLIDATION PERIOD AFTER THE RECENT APPROVAL OF FEDERAL INCOMETAX INCREASES IN SECONDARY TRADING THE COLORADO RIVER MUNICIPAL WATER DISTRICT OF TEXAS' 5375 REVENUE REFUNDING BONDS OF 2013 ENDED 1/8 LOWER AT 99 1/8 TO YIELD 543 THE VALDEZ ALASKA 585 MARINE TERMINAL REVENUE REFUNDING BONDS OF 2025 ENDED 1/8 LOWER AT 100 7/8 TO YIELD 577 LOOKING AHEAD THE MORE THAN 2 BILLION OF SECURITIES SCHEDULED FOR SALE TODAY INCLUDES THE NEW YORK STATE POWER AUTHORITY'S 11 BILLION OF GENERALPURPOSE REFUNDING AND NEWMONEY BONDS AND THE LOS ANGELES COUNTY CONVENTION & EXHIBITION CENTER'S 510 MILLION OF REFUNDING CERTIFICATES OF PARTICIPATION PAINEWEBBER INC IS THE LEAD UNDERWRITER FOR THE POWER AUTHORITY'S ISSUE AND GRIGSBY BRANDFORD & CO IS THE MANAGING UNDERWRITER FOR THE CONVENTION CENTER OFFERING PRICES OF MORTGAGE SECURITIES ENDED LOWER AMONG PRICES OF CURRENT COUPONS FOR SEPTEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 1/8 POINT LOWER AT 100 22/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES BOTH FINISHED 1/32 LOWER AT 100 30/32 AND 100 23/32 RESPECTIVELY WHAT LITTLE FLOWS THERE WERE YESTERDAY INVOLVED SOCALLED DOWNINCOUPON TRADES LIKE THOSE SEEN LAST WEEK SUCH TRADES WHICH ENTAIL SELLING A HIGHERCOUPON ISSUE IN ORDER TO BUY A LOWERCOUPON SECURITY HAVE BEEN PREVALENT BECAUSE OF THE CONTINUED FALL IN LONGTERM RATES WHEN LONGTERM INTEREST RATES ARE LOW MORTGAGE SECURITIES ARE IN DANGER OF BEING CALLED EARLY OR PREPAID AS HOMEOWNERS RUSH TO REFINANCE MORTGAGES AND THUS RETIRE EXISTING LOANS AND THE SECURITIES CREATED FROM THEM THE PRIMARY MARKET MEANWHILE PRODUCED TWO NEW FANNIE MAE REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS FOR A TOTAL OF ABOUT 827 MILLION IN NEW PAPER ONE REMIC WAS COLLATERALIZED WITH 15YEAR 6 MORTGAGE SECURITIES WHILE THE OTHER USED 30YEAR 65 SECURITIES 9308240032 930824 ECONOMY WALMART ADMITS SELLING BELOW COST BUT DENIES PREDATORY PRICING CHARGE BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL CONWAY ARK THE CHIEF EXECUTIVE OF WALMART STORES INC TESTIFYING ON THE OPENING DAY OF A PREDATORY PRICING TRIAL SAID THE RETAILER DOES SELL SOME PRODUCTS AT LESS THAN COST BUT ARGUED THAT THE COMPANY ISN'T BREAKING THE LAW BECAUSE IT ISN'T TRYING TO DESTROY COMPETITION IN A STATE COURT TRIAL OF A SUIT BROUGHT BY THREE LOCAL PHARMACIES DAVID GLASS SAID THE BENTONVILLE ARK RETAILER REGULARLY SELLS A VARIETY OF ITEMS BELOW COST INCLUDING SUCH STANDARDS AS CREST TOOTHPASTE AND LISTERINE MOUTHWASH BUT HE MAINTAINED SELLING BELOW COST DOESN'T VIOLATE THE LAW OR DESTROY COMPETITION MR GLASS WAS CALLED AS A WITNESS FOR THE PLAINTIFFS HE TESTIFIED AFTER AN ATTEMPT TO QUASH A SUBPOENA FAILED LAST WEEK WALMART ATTORNEYS ARGUED IN A PRETRIAL BRIEF FILED YESTERDAY THAT WHAT THE LAW DESCRIBES AS PRODUCT SHOULDN'T BE CONSIDERED TO APPLY TO INDIVIDUAL ITEMS BUT RATHER TO WALMART'S MARKET BASKET OR FULL LINE OF PRODUCTS IF THE ENTIRE LINE ISN'T PRICED BELOW COST THEY CONTENDED IT ISN'T A VIOLATION OF THE STATUTE WALMART HAS BECOME THE NATION'S LARGEST RETAILER BY FIERCELY COMPETING WITH SMALLTOWN RETAILERS INDEPENDENTS HAVE LONG ACCUSED WALMART OF SELLING GOODS BELOW COST TO DRIVE THEM OUT OF BUSINESS AND THEN BOOSTING PRICES AFTER GAINING CONTROL OF THE MARKET WALMART HAS LOST AT LEAST ONE OTHER CASE OF PREDATORY PRICING IN AN OKLAHOMA STATE COURT IN 1986 THE CONWAY CASE IS AN IMPORTANT ONE FOR WALMART WHICH COULD FACE A HOST OF SIMILAR SUITS IN ARKANSAS AND 22 OTHER STATES WITH SIMILAR PREDATORY PRICING STATUTES IF IT LOSES INDEED THE TRIAL IS BEING ATTENDED BY SEVERAL ATTORNEYS WHO SAID THEY ARE CONSIDERING SIMILAR SUITS THE ARKANSAS STATUTE WHICH IS BEING TESTED FOR THE FIRST TIME SINCE ITS 1937 PASSAGE GENERALLY FORBIDS BUSINESSES FROM SELLING OR ADVERTISING ANY ARTICLE OR PRODUCT AT LESS THAN THE COST THEREOF TO THE VENDOR FOR THE PURPOSE OF INJURING COMPETITORS AND DESTROYING COMPETITION TWO OF THE PLAINTIFFS DWAYNE GOODE AND JIM HENDRICKSON TESTIFIED YESTERDAY THAT THEY HAVE LOST THOUSANDS OF PRESCRIPTIONS A YEAR AND OTHER BUSINESS TO WALMART AS A RESULT OF THE BIG COMPANY'S AGGRESSIVELY LOW PRICING BUT IN ITS BRIEF WALMART CONTENDED THAT GROSS PROFIT MARGINS AT TWO OF THE THREE PHARMACIES BRINGING THE SUIT HAVE ACTUALLY IMPROVED SINCE WALMART OPENED A PHARMACY IN ITS CONWAY STORE IN 1987 AND THAT THE THREE PHARMACIES AREN'T LIKELY TO BE DRIVEN OUT OF BUSINESS THERE IS NO EVIDENCE WROTE ATTORNEY PETER KUMPE THAT WALMART HAS TRIED TO MONOPOLIZE THE PHARMACEUTICAL MARKET IN CONWAY MR KUMPE ALSO ARGUED IN THE BRIEF THAT OTHER STATES SUCH AS PENNSYLVANIA HAVE STRUCK DOWN AS UNCONSTITUTIONAL SIMILAR LAWS THAT LIMIT THE RIGHT OF SELLERS TO SET PRICES OR SELL BELOW COST IN ANY EVENT THE BRIEF ARGUED FEDERAL ANTITRUST LAW SHOULD PREEMPT THE ARKANSAS LAW FEDERAL ANTITRUST LAWS THE BRIEF CONTENDED SEEK NOT TO PROTECT BUSINESSES FROM THE WORKING OF THE MARKET BUT TO PROTECT THE PUBLIC FROM THE FAILURE OF THE MARKET IN HIS OPENING STATEMENT PLAINTIFFS' ATTORNEY MATT ADLONG SAID THAT SINCE THE SUIT WAS FILED WALMART INITIALLY SAID THEY DIDN'T SELL ANYTHING BELOW COST THEN THEY SAID THEY COULDN'T DETERMINE WHAT THE COST IS NOW THEY SAY YES THEY SELL BELOW COST BUT THERE'S NO INTENT TO DAMAGE COMPETITION LATER UNDER CROSSEXAMINATION MR GLASS SAID HE WASN'T AWARE THAT WALMART ATTORNEYS HAD DENIED THAT THE COMPANY SOLD ITEMS BELOW COST MR GLASS CONCLUDED HIS TESTIMONY LATE YESTERDAY THE TRIAL UNDER STRICT TIME LIMITS SET BY JUDGE DAVID L REYNOLDS IS EXPECTED TO CONCLUDE TODAY 9308240031 930824 TECHNOLOGY INTEL VTEL TO MAKE FAMILY OF PRODUCTS FOR VIDEOCONFERENCING SANTA CLARA CALIF INTEL CORP THE LARGE COMPUTER CHIP MAKER AND VTEL CORP A MAKER OF VIDEOCONFERENCING SYSTEMS SAID THEY INTEND TO DEVELOP A COMPATIBLE FAMILY OF VIDEOCONFERENCING PRODUCTS UNDER A MEMORANDUM OF UNDERSTANDING SUBJECT TO APPROVAL OF THE COMPANIES' BOARDS AND OTHER CONDITIONS INTEL AGREED TO PROVIDE ITS INDEO VIDEO A DESKTOP PERSONALCOMPUTER VIDEO TECHNOLOGY IN VTEL'S LINE OF VIDEOCONFERENCING PRODUCTS IN TURN VTEL BASED IN AUSTIN TEXAS WOULD LICENSE ITS H320 VIDEOBASED CONFERENCING SOFTWARE TO INTEL FOR INCORPORATION INTO FUTURE INTEL PRODUCTS AND VTEL WOULD LET INTEL BUY UP TO NEARLY ONEFIFTH OF ITS OUTSTANDING STOCK TERMS CALL FOR INTEL TO PURCHASE 10 OF VTEL'S STOCK FOR ABOUT 7 MILLION WITH THE RIGHT TO NEARLY DOUBLE THAT PERCENTAGE OF OWNERSHIP THE TENTATIVE AGREEMENT FOLLOWS INTEL'S PLAN TO MOVE INTO DESKTOP PC VIDEOCONFERENCING AN EMERGING TECHNOLOGY THAT WOULD ENABLE THE USER OF A PERSONAL COMPUTER TO SEE THE PERSON WITH WHOM HE OR SHE IS COMMUNICATING PAT GELSINGER VICE PRESIDENT AND GENERAL MANAGER OF INTEL'S BUSINESS COMMUNICATIONS SAID THAT EARLY DESKTOP VIDEOCONFERENCING PRODUCTS WILL START COMING OUT NEXT YEAR BUT THAT IT WILL TAKE SEVERAL YEARS FOR A MASS MARKET TO DEVELOP 9308240030 930824 BUSINESS BRIEF MAN AG GERMAN MACHINERY MAKER TO REDUCE DIVIDEND BY 29 MAN AG A MUNICH GERMANY MACHINERY AND TRUCK MANUFACTURER SAID IT WILL SLASH ITS DIVIDEND 29 FOR THE YEAR ENDED JUNE 30 TO 850 MARKS 507 AFTER REPORTING A 45 DROP IN NET INCOME NET FELL TO 230 MILLION MARKS 1374 MILLION FROM 418 MILLION MARKS SALES FELL 1 TO 1897 BILLION MARKS FROM 1917 BILLION MARKS PRICING PRESSURES AND FALLING CAPACITY UTILIZATION HURT OPERATING RESULTS MAN SAID THE COMPANY SAID IT REDUCED ITS WORK FORCE IN THE PAST TWO YEARS 88 OR 5850 EMPLOYEES BECAUSE OF THE WEAK ECONOMY THE REDUCTIONS AFFECTED ALL AREAS OF THE COMPANY AND IN PARTICULAR MUST BE CONTINUED IN ITS MAN NUTZFAHRZEUGE AND MAN ROLAND UNITS THE COMPANY SAID ORDER LEVELS PICKED UP DURING THE COURSE OF THE FISCAL YEAR BUT WERE STILL 83 LOWER THAN A YEAR EARLIER 9308240029 930824 BUSINESS BRIEF TRANSMATION INC COMPANY CONSIDERS PUTTING ITSELF ON THE AUCTION BLOCK TRANSMATION INC SAID IT IS CONSIDERING THE SALE OF ALL OR PART OF THE COMPANY TRANSMATION WHICH MAKES AND DISTRIBUTES EQUIPMENT TO MONITOR INDUSTRIAL PROCESSES SAID IT HASN'T RECEIVED ANY OFFERS OF PURCHASE AND ISN'T IN TALKS WITH ANY PROSPECTIVE PURCHASER WILLIAM J BERK CHAIRMAN AND PRESIDENT SAID IN AN INTERVIEW THAT THE COMPANY HAS GROWN A LOT IN THE LAST FEW YEARS AND BELIEVES IT COULD PARTICIPATE IN THIS KIND OF ARRANGEMENT AND GROW THE COMPANY EVEN MORE THE ROCHESTER NY COMPANY SAID IT NAMED INVESTMENT BANKING FIRM ADVEST INC AS ITS FINANCIAL ADVISER 9308240028 930824 FORM + FUNCTION BY JOHN PIERSON RAYCHEM HAD A PROBLEM THE COMPANY WAS ABOUT TO BAN SMOKING INSIDE THE 21 BUILDINGS OF ITS CAMPUS AT MENLO PARK CALIF BUT OFFICIALS FEARED THAT SMOKERS WOULD CONGREGATE OUTSIDE BY THE ENTRANCES GIVING VISITORS A BAD IMPRESSION WE WANTED TO DISCOURAGE PEOPLE FROM SMOKING NEAR THE LOBBIES SO VISITORS WOULDN'T HAVE TO WALK THROUGH A CLOUD OF SMOKE SAYS AUDREY STRUVE FACILITIES MANAGER RAYCHEM'S SOLUTION WAS TO BUILD SMOKING AREAS OUTSIDE OF ITS BUILDINGS AND AWAY FROM FRONT DOORS THE AREAS ARE ROOFED WITH AWNINGS AND HAVE NO SIDES OR SIDES OF CONCRETE BLOCK OR GLASS WHERE THE WIND IS STRONG MS STRUVE SAYS SHE HOPES SMOKERS WILL BE DRAWN AWAY FROM THE ENTRANCES TO THE NEW PLACES GOING BEYOND HOPE TO TOUGHNESS IS DURAMETALIC KALAMAZOO MICH THERE'S SUBSTANTIAL DISCIPLINARY ACTION FOR THOSE WHO DON'T USE THE DESIGNATED SMOKING AREAS SAYS FACILITIES MANAGER BILL ANDERSON COMPANIES TRYING TO LURE SMOKERS TO DESIGNATED AREAS OUTDOORS CAN CHOOSE FROM A VARIETY OF FURNITURE ONE OF THE LATEST IS THE NAPOLEON WEATHERPROTECTED ASH URN BY LANDSCAPE FORMS KALAMAZOO SHAPED LIKE A GIRL'S HEAD WITH LONG BRAIDS THE NAPOLEON HAS A FLARED ROOF TO KEEP OUT RAIN AND SNOW THE THIN DEEP ASH PAN IS MEANT TO PREVENT THE WIND FROM BLOWING ASHES AROUND DURAMETALIC HAS JUST INSTALLED THREE NAPOLEONS AND MERCHANTS SERVICE BUREAU GRAND RAPIDS MICH HAS ORDERED TWO NOT FOR EMPLOYEES BUT TO GIVE CUSTOMERS A NICE PLACE TO PUT OUT CIGARETTES BEFORE ENTERING THE SMOKEFREE BUILDING SPIDERS ARE GREAT AT SPINNING WEBS SO WHY NOT EMPLOY SOMETHING LIKE A SPIDER JOSEPH PEGNA WANTS TO KNOW TO BUILD YOUR HOUSE MR PEGNA ASSISTANT PROFESSOR OF MECHANICAL ENGINEERING AT RENSSELAER POLYTECHNIC IS DESIGNING A GIANT ROBOT THAT WOULD STAND AT A HOUSE SITE SPIDER LIKE AND SPIN A 1/16INCHTHICK THREAD OF CONCRETE OR OTHER MATERIAL LAYER UPON LAYER TO FORM THE HOUSE'S SHELL THE CONCRETE WOULD BE HIGH STRENGTH NOT REQUIRING STEEL REINFORCEMENT A COMPUTER WOULD GUIDE THE ROBOT MR PEGNA SAYS HIS DEVICE WOULD SAVE MONEY AS FEWER LABORERS ARE NEEDED AND WORK COULD GO ON AROUND THE CLOCK AND IN BAD WEATHER EXPERTS ARE OF TWO MINDS ABOUT MR PEGNA'S SPIDER A FAROUT IDEA THAT HAS SOME POTENTIAL SAYS KEN CHONG DIRECTOR OF STRUCTURAL SYSTEMS AT THE NATIONAL SCIENCE FOUNDATION SOUNDS VERY FEASIBLE TECHNICALLY SAYS MICHAEL KNASEL EDITOR OF AUTOMATION IN CONSTRUCTION MAGAZINE BUT ROOZBEH KANGARI AN ASSOCIATE PROFESSOR OF CIVIL ENGINEERING AT GEORGIA TECH WHO HAS BEEN TO JAPAN TO STUDY THE USE OF ROBOTS IN CONSTRUCTION SAYS MR PEGNA'S DEVICE WOULD PAY FOR ITSELF ONLY IN SKYSCRAPERS AND WILLIAM WHITTAKER PRINCIPAL SCIENTIST AT THE ROBOTICS INSTITUTE CARNEGIE MELLON UNIVERSITY WONDERS HOW WIRING PLUMBING AND APPLIANCES WOULD GET INTO THE ROBOTICALLY BUILT HOUSE SOME OF IT YOU CAN SQUEEZE OUT OF A MAGIC TUBE SAYS DR WHITTAKER BUT A WASHING MACHINE YOU NEED TO BRING IN MR PEGNA REPLIES THAT UTILITIES AND APPLIANCES WOULD BE PUT IN PLACE BY OTHER ROBOTS ALL THREE STUDENTS ARE MAKING WAVES IN DRINKING FOUNTAINS THEY HAVE CONCEIVED A FOUNTAIN HIGH ENOUGH FOR MOST ADULTS TO BEND DOWN TO AND LOW ENOUGH FOR WHEELCHAIR USERS TO REACH UP TO MICHAEL OSADCIW MATHEW GUTHRIE AND MICHAEL LAMONICA HAVE JUST GRADUATED FROM THE DESIGN PROGRAM AT STATE UNIVERSITY OF NEW YORK AT BUFFALO THEIR ASSIGNMENT FROM ASSISTANT PROFESSOR ABIR MULLICK WAS TO MAKE A FOUNTAIN THAT WOULD BE UNIVERSAL DISABLED PEOPLE COULD USE IT WITH EASE AND WOULDN'T FEEL SEGREGATED WHEN THEY USED IT SAYS MR OSADCIW CALLED TIDAL FOUNTAIN THE DESIGN HAS THE SHAPE OF A BREAKING WAVE INSIDE THE CURVE A WHEELCHAIR USER COULD PARK HIS LEGS WHILE HE DRANK THE FOUNTAIN WOULD BE MADE OF STEEL WRAPPED IN PLASTIC OR FIBERGLASS AESTHETICALLY THE FOUNTAIN IS A HIT NOTHING ABOUT IT SAYS HANDICAPPED' SAYS MARGARET WYLDE VICE PRESIDENT OF THE INSTITUTE FOR TECHNLOGY DEVELOPMENT OXFORD MISS AND FUNCTIONALLY THE STUDENTS ARE AT THE LEADING EDGE UNDER THE AMERICANS WITH DISABILITIES ACT DRINKING FOUNTAINS FOR PEOPLE IN WHEELCHAIRS ARE TO BE NO HIGHER THAN 36 INCHES A CONVENTIONAL FOUNTAIN IS ABOUT 43 INCHES HIGH THE STUDENTS' MODEL IS 35 INCHES A LOT OF PEOPLE TRIED OUT 35 AND NOBODY COMPLAINED IT WAS TOO LOW SAYS MR OSADCIW IN FACT THE IDEA OF ONEHEIGHTFITSALL HAS BEGUN TO TAKE HOLD IN THE FOUNTAIN INDUSTRY WHICH UNTIL NOW TENDED TO OFFER SEPARATE HIGH AND LOW FOUNTAINS FOR THE ABLE AND DISABLED WE ARE HEADED IN THAT DIRECTION SAYS PETER BENUA EXECUTIVE VICE PRESIDENT OF EBCO MANUFACTURING A LEADING FOUNTAIN MAKER 9308240027 930824 MARKETING & MEDIA ADVERTISING SEARS WILL SHOW ITS SOFTER SIDE' IN BLITZ PUSHING WOMEN'S WEAR BY GREGORY A PATTERSON SEARS ROEBUCK & CO THINKS ITS SOFTER SIDE CAN HELP IT PLAY HARDBALL IN THE FIERCELY COMPETITIVE RETAIL WORLD THE NATION'S NO 3 RETAILER IS PREPARING A FALL ADVERTISING BLITZ ITS MOST CRITICAL CAMPAIGN IN YEARS THAT WILL EMPLOY THE SLOGAN THE SOFTER SIDE OF SEARS TO ENCOURAGE WOMEN TO BUY MORE APPAREL THE COMPANY INTENDS TO PIGGYBACK ITS EFFORT TO LURE WOMEN SHOPPERS ON THE POPULARITY OF ITEMS CONSUMERS ALREADY PURCHASE AT SEARS SUCH AS DIE HARD BATTERIES CRAFTSMAN TOOLS AND CHILDREN'S CLOTHING PEOPLE FAMILIAR WITH THE CAMPAIGN SAY IT USES WIT TO TELL CONSUMERS THAT SEARS SELLS MORE THAN JUST TOOLS APPLIANCES AND CHILDREN'S CLOTHING IN ONE PRINT ADVERTISEMENT A WOMAN IN AN EVENING DRESS JUST BACK FROM A TRIP TO SEARS SAYS SHE WENT TO THE STORE TO BUY A DIE HARD BUT ENDED UP WITH A DRESS TO DIE FOR SEARS OFFICIALS DECLINED TO COMMENT ON SPECIFICS SEARS PLANS TO SPEND MUCH OF THIS YEAR'S 190 MILLION APPARELMARKETING BUDGET UP 20 FROM LAST YEAR FOR THE CAMPAIGN SET TO START IN MIDSEPTEMBER IN A STRATEGIC CHANGE SEARS INTENDS TO CONCENTRATE ADVERTISING SPENDING ON HIGHLY VISIBLE TV EVENTS RATHER THAN SPREAD ITS BUDGET AMONG LOWERPRICED TIME SLOTS THE CHICAGOBASED RETAIL AND FINANCIAL SERVICES COMPANY PLANS TO KICK OFF ITS BLITZ AS A MAJOR SPONSOR OF THE SEPT 19 EMMY AWARDS BROADCAST ON ABC WHERE A 30SECOND SPOT REPORTEDLY IS BEING OFFERED FOR 300000 SEARS PRESUMABLY HAS NEGOTIATED ITS OWN DEAL WITH ABC IT ALSO INTENDS TO ADVERTISE ON ABC'S BARBARA WALTERS SPECIALS AS WELL AS ON TELEVISION MOVIE PREMIERES THE ADVERTISING CAMPAIGN BEING HANDLED BY YOUNG & RUBICAM COMES AT A CRITICAL TIME FOR SEARS AS IT SEEKS TO TRANSFORM ITS RETAIL OPERATIONS FROM ORDINARY PURVEYORS OF A BROAD RANGE OF GOODS AND SERVICES INTO CONTEMPORARY MORE SPECIALIZED DEPARTMENT STORES EARLIER THIS YEAR SEARS HIRED YOUNG & RUBICAM TO HANDLE ITS APPAREL AD ACCOUNT REPLACING WPP GROUP'S OGILVY & MATHER WHICH HAD HANDLED IT FOR MORE THAN 15 YEARS SEARS' REFOCUSING HAS MET WITH EARLY SUCCESS IT POSTED RECORD EARNINGS IN ITS MOST RECENT TWO QUARTERS AS WELL AS IMPRESSIVE SALES INCREASES AT ITS STORES THE PAST TWO MONTHS BUT MUCH OF THAT SUCCESS HAS REFLECTED GAINS FROM TYPICAL SUMMER PURCHASES AT SEARS AIR CONDITIONERS AND LAWN AND GARDEN EQUIPMENT WHOSE SALES WERE DEPRESSED A YEAR EARLIER BY UNSEASONABLY COOL WEATHER THUS SEARS STILL FACES THE CHALLENGE OF BOOSTING ITS APPAREL SALES FROM 28 OF ITS STORES' TOTAL RECEIPTS TO ABOUT 40 SEARS WILL ACHIEVE THAT ONLY BY SHARPLY INCREASING ITS WOMEN'S APPAREL SALES TO ACCOMPLISH THAT SEARS HAS TO CREATE A TOTALLY NEW IMAGE IN THE MINDS OF CONSUMERS ABOUT WHAT IT CAN DO FOR FASHION CONTENDS KURT BARNARD A RETAIL CONSULTANT AND NEWSLETTER PUBLISHER SEARS SAYS ITS RESEARCH SHOWS THAT SIX OF 10 AMERICAN FAMILIES SHOP AT ITS STORES AT LEAST ONCE A YEAR WOMEN ALREADY SHOP OUR STORES AS CHIEF PURCHASING AGENTS FOR THEIR FAMILIES SAYS JOHN COSTELLO SEARS' NEW MARKETING SENIOR EXECUTIVE VICE PRESIDENT THE IMPORTANT THING IS TO GET MOM TO BUY THINGS FOR HERSELF AND SEARS BELIEVES IT NOW HAS AN APPAREL SELECTION AND SHOPPING ENVIRONMENT THAT WOMEN WILL FIND APPEALING THE COMPANY HAS BEEN UPGRADING ITS WOMEN'S APPAREL SELECTIONS AND HAS RENOVATED NEARLY HALF ITS 800 STORES WHILE CLOSING MANY OUTDATED ONES TODAY WE HAVE A GAP BETWEEN CONSUMERS' AWARENESS OF OUR APPAREL AND THE QUALITY OF OUR APPAREL SELECTIONS MR COSTELLO SAYS IN THE FALL APPAREL CAMPAIGN WE WILL FIRE THE FIRST SHOT TO CLOSE THAT PERCEPTION GAP SOME VETERAN SEARS WATCHERS SAY THE COMPANY NEEDS A MORE DIRECT APPROACH IN THE MANNER OF KMART CORP'S TELEVISION ADVERTISEMENTS THAT FEATURE WOMEN VISIBLY SURPRISED THAT THEY COULD FIND SUCH NICE GARMENTS IN A KMART STORE RETAILING CONSULTANT PETER GLEN THINKS SEARS IN ITS CAMPAIGN SHOULD HAVE ASKED CUSTOMERS TO GIVE IT ANOTHER CHANCE THE CONSUMER NOW IS EITHER DISAPPOINTED WITH OR MAD AT SEARS HE MAINTAINS MR GLEN CITES SEARS' 1989 EVERYDAY LOW PRICES CAMPAIGN WHICH IT BALLYHOOED AND THEN RAPIDLY ABANDONED AND LAST YEAR'S CONTROVERSY AT SEARS' AUTO CENTERS IN THAT FLAP SEARS WAS CHARGED WITH ADVISING CONSUMERS TO PURCHASE UNNECESSARY AUTO REPAIRS THE RETAILER PLACED FULLPAGE ADVERTISEMENTS IN NEWSPAPERS AROUND THE COUNTRY THAT DENIED ANY WRONGDOING BUT IT LATER AGREED TO PAY MORE THAN 15 MILLION TO SETTLE THE MATTER NOT EVERYONE AGREES WITH MR GLEN STAY AWAY FROM BEING APOLOGETIC IT'S AN ADMISSION OF PAST MISTAKES AND IF SOMEONE HAS BEEN MAKING A LOT OF MISTAKES WHY WOULD I TRUST THEM NOW SAYS DONALD HUGHES A MARKETING PROFESSOR AT DEPAUL UNIVERSITY AND FORMER MARKETING RESEARCH MANAGER FOR SEARS IF THEY THINK THEY NOW HAVE WHAT THE CONSUMER WANTS THEY SHOULD JUST SAY IT SEARS APPARENTLY THINKS JUST THAT IT IS CHANGING ITS ADVERTISING FOCUS TO EMPHASIZE THE TOTAL STORE AS A PLACE TO SHOP A DEPARTURE FROM EMPHASIZING ITS POPULAR BRANDS THOUGH SEARS IS REDOING ITS APPAREL MESSAGE MR COSTELLO INDICATES THAT THE RETAILER WILL RETAIN ITS YOU CAN COUNT ON ME SLOGAN THAT LEADS ADVERTISEMENTS FOR THE ENTIRE STORE SEARS ALSO PLANS TO PRESS ITS FASHION CASE THROUGH INSTORE EVENTS LAST WEEKEND FOR EXAMPLE THE COMPANY CONDUCTED A FASHION SHOW CALLED FASHION FUNDAMENTALS 101 AT THE HUGE MALL OF AMERICA NEAR MINNEAPOLIS IT SHOWED OFF ITS LATEST OFFERINGS FOR YOUNG WOMEN AS PART OF A BACKTOSCHOOL SALES DRIVE WPP GROUP PLC REPORTED A PROFIT FOR THE FIRST HALF OF 114 MILLION 173 MILLION IT HAD A LOSS OF 5 MILLION A YEAR EARLIER WPP IS THE PARENT OF AD AGENCIES J WALTER THOMPSON OGILVY & MATHER AND SCALI MCCABE SLOVES REVENUE ROSE 164 TO 6997 MILLION FROM 6011 MILLION A YEAR EARLIER THE LONDONBASED COMPANY REPORTED REVENUE ROSE 9 IN THE US BUT FELL 3 IN BRITAIN AND WAS FLAT IN CONTINENTAL EUROPE WPP SAID IT WILL PAY AN ORDINARY DIVIDEND OF 035 PENCE PER SHARE FOR THE FIRST TIME SINCE 1990 REVENUE ROSE BY MORE THAN 6 AT ITS THOMPSON UNIT AND MORE THAN 4 AT OGILVY & MATHER WORLDWIDE SCALI'S REVENUE ROSE OVER 25 THOMPSON GENERATED NET NEW BILLINGS OF OVER 156 MILLION AND OGILVY GENERATED NET NEW BUSINESS OF 117 MILLION THE COMPANY SAID ITS PUBLIC RELATIONS BUSINESSES CONTINUED TO BE ADVERSELY AFFECTED BY THE RECESSION PARTICULARLY IN THE US AND REVENUE DECLINED BY 12 A YEAR EARLIER WPP ANNOUNCED A RESTRUCTURING THAT GAVE BANKERS A 48 STAKE IN THE COMPANY THE BANKERS ERASED A DEBT CREATED WHEN WPP PURCHASED THOMPSON AND OGILVY IN THE LATE 1980S YESTERDAY WPP SAID IN A STATEMENT THAT IT CONTINUES TO EXAMINE WAYS OF REDUCING DEBT THROUGH THE SALE OF SCALI EXCLUDING ITS NEW YORK PROPERTY ITS NEW YORK SALES PROMOTION COMPANY FALLON MCELLIGOTT AND ITS DUTCH GERMAN AND BRAZILIAN AGENCIES ONE OF SCALI'S LARGEST CLIENTS IS MERCEDESBENZ OF NORTH AMERICA 9308240026 930824 WHO'S NEWS CIRCUS CIRCUS RECRUITS GOLUSKA OF SKIDMORE TO DEVELOP PROJECTS LAS VEGAS KIMBAL T GOLUSKA A PARTNER WITH THE ARCHITECTURAL DESIGN FIRM OF SKIDMORE OWINGS AND MERRILL OF CHICAGO IS JOINING CIRCUS CIRCUS ENTERPRISES INC TO HELP THE CASINO COMPANY DEVELOP URBAN ENTERTAINMENT AND RESORT CENTERS THE MOVE TO BRING IN A HIGHPROFILE URBAN DESIGNER IS UNUSUAL FOR A CASINO COMPANY AND STEMS FROM CIRCUS' STRATEGY OF DEVELOPING MAJOR CASINOANCHORED ENTERTAINMENT PROJECTS BOTH DOMESTICALLY AND ABROAD MUCH OF THE NEXT DECADE'S GROWTH IN THE CASINO BUSINESS IS EXPECTED TO COME FROM CITIES' LEGALIZING LANDBASED GAMBLING AS THEY SEEK TO CREATE JOBS AND ANCHOR REDEVELOPMENT PROJECTS IN LARGE METROPOLITAN AREAS IN HIS 16 YEARS WITH SKIDMORE OWINGS MR GOLUSKA 39 YEARS OLD WORKED ON SEVERAL HIGHPROFILE PROJECTS INCLUDING THE FINANCIAL CENTER ON CANARY WHARF IN LONDON AND THE KING ABDUL AZIZ INTERNATIONAL AIRPORT IN SAUDI ARABIA MR GOLUSKA HAD WORKED WITH CIRCUS CIRCUS AND TWO PARTNERS HILTON HOTELS CORP AND CAESARS WORLD INC ON A BID TO BRING A 2 BILLION CASINOBASED ENTERTAINMENT CENTER TO CHICAGO ALTHOUGH THE PROPOSAL RAN INTO POLITICAL OPPOSITION THE ISSUE OF LANDBASED GAMBLING IN CHICAGO IS EXPECTED TO BE BROUGHT UP AGAIN IN FUTURE LEGISLATIVE SESSIONS 9308240025 930824 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR FAMILY LEAVE MOST FIRMS WILL SPREAD ABSENTEES' WORK AROUND WHILE TEMPORARIES MAY FILL IN FOR CLERICAL WORKERS WHO TAKE MATERNITY OR OTHER LEAVE MCI COMMUNICATIONS AETNA LIFE & CASUALTY TERADYNE GILLETTE SUN MICROSYSTEMS AND LOTUS DEVELOPMENT SAY EMPLOYEES WHO AREN'T ON LEAVE WILL PICK UP MUCH OF THE LOAD CROSSTRAINED WORKERS WILL GET EXTRA DUTIES AT BLUE CROSS OF WESTERN PENNSYLVANIA AND WILL BE MONITORED TO AVOID UNDUE BURDENS EMPHASIZING THE POSITIVE CONSOLIDATED NATURAL GAS IN PITTSBURGH CALLS TRANSFERS TO COVER FOR ABSENT WORKERS DEVELOPMENTAL OPPORTUNITIES LOADSHARING BY HARDWORKING SALARIED WORKERS WILL ADD LITTLE COST SAY MCI AND TERADYNE AETNA PREDICTS THAT ANY COSTS ASSOCIATED WITH LEAVE WILL BE OFFSET BY SAVINGS ON RECRUITING AND TRAINING BECAUSE FEWER WOMEN WILL QUIT EMPLOYEES CAN'T AFFORD TO TAKE UNPAID LEAVE SO IT'S NOT A MAJOR PROBLEM AT WEYERHAEUSER AN OFFICIAL SAYS RECEDING FLOOD WATERS MAKE WAY FOR SOME CLEANUP JOBS WHILE HIGH MISSISSIPPI WATERS CAUSED MANY LAYOFFS RECOVERY FROM THE DEVASTATION WILL HELP EMPLOYMENT DES MOINES PUTS REGULAR WORKERS ON OVERTIME AND HIRES OTHERS TO HAUL AWAY THOUSANDS OF TONS OF WATERLOGGED GOODS NORWEST A MINNEAPOLIS BANK FIRM PLEDGES 120000 TO BOLSTER A 250000 FEDERAL GRANT TO PAY YOUNG PEOPLE TO HELP CLEAN UP THREE IOWA TOWNS THE NEED TO REPAIR MORE THAN 1000 MIDWEST LEVEES WILL MEAN JOBS FOR BULLDOZER AND FRONTLOADER OPERATORS AND FOR LANDSCAPERS THEY WILL WORK IN TEAMS OF TWO TO 50 PER LEVEE SOME BARGE CREWS WILL DREDGE RIVERBOTTOM SAND AND PIPE IT TO RIVER BANKS FOR THE LEVEES DID SAMUEL GOMPERS REALLY SAY THAT LABOR SIMPLY WANTS MORE THE FORMER LABOR LEADER IS WIDELY QUOTED THAT WAY THE AFLCIO SAYS EVER SINCE UNIONFIGHTING INDUSTRY COUNCILS IN THE 1920S BEGAN PROMOTING THE IDEA THAT THAT IS WHAT HE SAID IN FACT GOMPERS ASKED IN A SPEECH WHAT DOES LABOR WANT IT WANTS THE EARTH AND THE FULLNESS THEREOF THERE IS NOTHING TOO BEAUTIFUL TOO LOFTY TOO ENNOBLING UNLESS IT IS WITHIN THE SCOPE AND COMPREHENSION OF LABOR'S ASPIRATIONS AND WANTS WE WANT MORE SCHOOLHOUSES AND LESS JAILS MORE BOOKS AND LESS ARSENALS MORE LEARNING AND LESS VICE MORE CONSTANT WORK AND LESS CRIME MORE LEISURE AND LESS GREED MORE JUSTICE AND LESS REVENGE IN FACT MORE OF THE OPPORTUNITIES TO CULTIVATE OUR BETTER NATURES AND MAKE CHILDHOOD MORE JOYFUL WOMANHOOD MORE BEAUTIFUL AND MANHOOD MORE NOBLE GOMPERS WHO HELPED FOUND THE AMERICAN FEDERATION OF LABOR AND HEADED IT FOR NEARLY 40 YEARS MADE THOSE REMARKS ON AUG 28 1893 IN CHICAGO BUT ADOLPH STRASSER GOMPERS'S ASSOCIATE AT THE CIGAR MAKERS UNION DID TELL A SENATE COMMITTEE THAT UNIONS WANTED MORE WAGES A BETTER LIVING STANDARD AND BETTER WORKING CONDITIONS ACCORDING TO LEO TROY A RUTGERS UNIVERSITY LABOR EXPERT STRASSER TESTIFIED AMID A MAJOR RAILROAD STRIKE IN THE LATE 1880S DIMMER OUTLOOK SOME 13 OF MORE THAN 2000 SMALL FIRMS POLLED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS PLAN NEW HIRING IN THE NEXT 90 DAYS DOWN FROM 18 THREE MONTHS AGO CUTBACKS ARE SEEN BY 12 UP FROM 11 BEFORE FOREIGN COLLEGE STUDENTS STUDY AND WORK MORE AND SLEEP LESS THAN AMERICAN COUNTERPARTS ACCORDING TO A SURVEY BY THE UNIVERSITY OF DELAWARE COLLEGE OF BUSINESS AND ECONOMICS AMERICANS DEVOTE AN AVERAGE OF 824 HOURS A DAY TO LEISURE WHILE FOREIGN STUDENTS LAZE FOR ONLY 633 HOURS LAYOFFS OUTSTRIP THE PACE SET IN RECESSION YEAR 1991 A COUNT BY PLACEMENT FIRM CHALLENGER GRAY & CHRISTMAS SHOWS WITH IBM'S RECENT BIG LAYOFF ANNOUNCEMENT 1993 FURLOUGHS ARE AVERAGING 50516 MONTHLY TOPPING 1991 BY MORE THAN 4000 A MONTH FITNESSTEST REQUIREMENTS FOR POLICE AND FIREFIGHTERS VARY WIDELY AN EXEMPTION FROM AGEDISCRIMINATION LAWS FOR PUBLIC SAFETY OFFICERS EXPIRES AT YEAR END SOME SAY FITNESS TESTING GAUGES QUALIFICATIONS BETTER THAN AGE OTHERS SAY VALID TESTS DON'T EXIST RENO NEV REQUIRES EXERCISES WEIGHT LIFTING AND BODYFAT EVALUATION FOR ITS POLICE LOS ANGELES ENTRYLEVEL FIREFIGHTERS ARE GIVEN A PHYSICALABILITY EXAM AND FITNESS TESTS MAY BE ORDERED FOR OTHERS WHOSE PERFORMANCE IS QUESTIONED PHOENIX OPERATIONS A SAN FRANCISCO SECURITY FIRM PLANS FITNESS TRAINING FOR ITS RENTACOPS BUT THE LOS ANGELES POLICE DEPARTMENT WHICH IN THE 1970S POSTED FAT MAN LISTS TO SHAME OVERWEIGHT COPS AND REQUIRED A DOCTOR'S FITNESS EXAM NOW DOES NO FITNESS TESTING CAL STATE PATROL SERVICE SAYS EMPLOYMENT LAWS WON'T LET IT REQUIRE ITS 600 GUARDS TO SHAPE UP OR BE FIRED AMERICAN PROTECTIVE SERVICES OAKLAND CALIF SAYS ITS GUARDS MUST MEET FITNESS STANDARDS ONLY AT FEDERAL SITES LIKE NUCLEAR POWER PLANTS SOME OF THE FIRM'S OTHER GUARDS WORK IN WHEELCHAIRS THE CHECKOFF NEARLY TWO DOZEN LAW SCHOOLS IN THE US REQUIRE PRO BONO OR PUBLIC SERVICE WORK BEFORE GRADUATION SAYS THE UNIVERSITY OF DAYTON STANFORD UNIVERSITY PROFESSOR CONDOLEEZZA RICE WINS THE ULTIMATE DIRECTOR'S HONOR CHEVRON CORP NAMES A NEW TANKER AFTER HER PIRATES' RENDEZVOUS NEXT APRIL'S EXECUTIVE SEARCH CONSULTANTS CONFERENCE WILL BE APPROPRIATELY HELD AT SAM LORD'S CASTLE IN BARBADOS 9308240024 930824 SMALLER US FIRMS TRAIL IN SETTING UP OPERATIONS ABROAD BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL SMALL AND MEDIUMSIZE COMPANIES IN THE US ARE FAR BEHIND THEIR COUNTERPARTS IN OTHER COUNTRIES IN SETTING UP FOREIGN OPERATIONS BUT THAT COULD CHANGE FAST AS THE GLOBAL BUSINESS TREND ACCELERATES A UNITED NATIONS REPORT FINDS COMPARED WITH JAPAN AND WESTERN EUROPE THE US HAS A RELATIVELY SMALL PERCENTAGE OF CORPORATE DIRECT INVESTMENT ABROAD FROM COMPANIES WITH LESS THAN 500 EMPLOYEES AT THEIR HOME SITES AT LATEST COUNT ITS SMALL AND MEDIUMSIZE COMPANIES HAD 15 BILLION IN FOREIGN DIRECT INVESTMENTS ONLY 3 OF THE US TOTAL WHILE SIMILARSIZE JAPANESE COMPANIES HAD 40 BILLION 15 AND DEVELOPED EUROPEAN COUNTRIES HAD ABOUT 43 BILLION 75 OF THEIR TOTAL ACCORDING TO MASATAKA FUJITA ONE OF THE AUTHORS OF THE 228PAGE REPORT THE LARGER SIZE OF THE US MARKETPLACE WAS THE MAIN REASON SO MANY SMALLER COMPANIES TENDED TO STAY HOME MR FUJITA SAID BUT HE ADDED THAT THEIR OVERSEAS PRESENCE HAS TAKEN A BIG JUMP SINCE THE EARLY 1980S BECAUSE NOW EVEN SMALL AND MEDIUMSIZE COMPANIES ARE BEGINNING TO FEEL COMPETITION FROM LESS DEVELOPED COUNTRIES IN ADDITION MORE CONCERNS ARE FINDING IT EASIER TO HAVE A FOREIGN OUTPOST EITHER AS A JOINT VENTURE OR INDEPENDENTLY BECAUSE RECENT TECHNOLOGICAL DEVELOPMENTS IN COMMUNICATIONS TRANSPORTATION AND FINANCIAL SERVICES HAVE ENABLED FIRMS OF ALL SIZES TO BETTER EXPLOIT INTERNATIONAL OPPORTUNITIES SAID A SUMMARY OF THE REPORT PREPARED FOR A UN CONFERENCE ON SMALL AND MEDIUMSIZE ENTERPRISES IN OSAKA JAPAN STARTING SEPT 7 SOME OF THE HURDLES COMPANIES HAD TO JUMP OVER HAVE BECOME EASIER SAID RAY MATALONI AN ECONOMIST WITH THE US CHAMBER OF COMMERCE WHICH SUPPLIED SOME OF THE DATA USED IN THE REPORT HE NOTED THAT AS A PERCENTAGE OF THE TOTAL NUMBER OF US COMPANIES WITH OVERSEAS STAKES THE SMALLMEDIUM COMPONENT ROSE FROM 24 IN 1982 TO 28 BY 1990 THAT WAS STILL WELL BELOW THE 60 OF TOTAL JAPANESE EQUITY INVESTMENTS OVERSEAS BY THAT COUNTRY'S SMALLER ENTERPRISES THE GROWTH IN EXPORTS BY US COMPANIES OF ALL SIZES HOWEVER MAY WELL ACCELERATE THE PACE OF DIRECT INVESTMENTS EXPECTS JOHN WILLIAMS CHIEF GLOBAL ECONOMIST OF BANKERS TRUST CO THE WEAKNESS OF THE DOLLAR WHICH MAKES US GOODS CHEAPER FOR FOREIGN CUSTOMERS IS GIVING MANY COMPANIES THEIR FIRST TASTE OF FOREIGN SALES HE NOTED IN THE MID 1980S WHEN THE DOLLAR WAS MUCH STRONGER FAR FEWER US COMPANIES COULD COMPETE ADDS JOHN ENDEAN VICE PRESIDENT OF THE AMERICAN BUSINESS CONFERENCE WHAT WE FOUND WITH OUR MEMBERS WAS THAT THEY START AS EXPORTERS AND MOVE VERY QUICKLY TO ROLLING OUT DIRECT INVESTMENTS TO ENHANCE OR SUPPLANT THEIR EXPORT STRATEGY HIS WASHINGTONBASED GROUP REPRESENTS ABOUT 100 FASTGROWING MEDIUMSIZE COMPANIES AFTER MOVING INTO JAPAN AND EUROPE MANY OF THOSE COMPANIES OVER THE PAST YEAR OR SO HAVE SOUGHT GROWTH IN THIRD WORLD MARKETS WITH GROWING INTEREST IN CHINA MEXICO AND MOST RECENTLY INDIA HE SAID RAY MATALONI IS AN ECONOMIST WITH THE US COMMERCE DEPARTMENT IN AN ARTICLE YESTERDAY ON OVERSEAS INVESTMENTS OF SMALL COMPANIES MR MATALONI WAS INCORRECTLY IDENTIFIED AS AN ECONOMIST WITH THE US CHAMBER OF COMMERCE 9308240023 930824 COLOR OF HATE AS A TENSE TRIAL BEGINS TAMPA FLA CONFRONTS COSTS OF RACIAL STRIFE WHITES ACCUSED OF TORCHING BLACK TOURIST CITY FEARS EFFECT ON ITS ECONOMY MEAN' SUSPECTS SHAKY CASE BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL TAMPA FLA HATE CRIMES HURT BUSINESS THAT ISN'T BUT MIGHT VERY WELL BE THE SLOGAN OF THIS STRUGGLING WEST FLORIDA PORT CITY AS MUCH AS ANY OTHER PLACE EAST OF LOS ANGELES TAMPA WHICH ONCE TOUTED ITSELF AS AMERICA'S NEXT GREAT CITY IS CONFRONTING THE ECONOMIC CONSEQUENCES OF RACIAL PROBLEMS IT CAN'T SEEM TO SHAKE THE LATEST CONCERN IS THE PENDING TRIAL OF TWO WHITE MEN WHO ARE ACCUSED OF ABDUCTING A BLACK TOURIST FROM NEW YORK LAST NEW YEAR'S DAY DOUSING HIM WITH GASOLINE AND SETTING HIM AFIRE IN AN ISOLATED ORANGE GROVE NEAR HERE ONE LESS NIGGER MORE TO GO READ A NOTE LEFT BY THE PERPETRATORS THE MAN SURVIVED WITH THIRDDEGREE BURNS ON HIS BACK AND CHEST AND IS EXPECTED TO TESTIFY JURY SELECTION BEGAN YESTERDAY POLICE AND PROSECUTORS HAVE BEEN MORE THAN USUALLY ANXIOUS TO MAKE ARRESTS AND GET TO TRIAL SO ANXIOUS DEFENSE LAWYERS HAVE ARGUED THAT THEY ARE PROCEEDING DESPITE FLIMSY EVIDENCE LINKING THE DEFENDANTS TO THE CRIME CITY OFFICIALS AND BUSINESS LEADERS TOO AREN'T HIDING THEIR EAGERNESS TO DISPOSE OF THE MATTER QUICKLY PREFERABLY WITH CONVICTIONS TO SHOW THAT TAMPA IS NOT A CITY OF HATE THE REASON GOES BACK IN PART TO ECONOMICS AND TO PAST RACIAL PROBLEMS IT WAS IN TAMPA WHICH IS 25 BLACK THAT HOMETOWN HERO DWIGHT GOODEN OF THE NEW YORK METS WAS STOPPED IN 1986 FOR A ROUTINE TRAFFIC OFFENSE AND BEATEN IN A BRAWL WITH NIGHTSTICKS AND FLASHLIGHTS HE HAS SINCE MOVED ACROSS TAMPA BAY TO MORE PLACID ST PETERSBURG SOME MONTHS LATER TAMPA'S STUCCO HOUSING PROJECTS WERE THE SCENE OF SEVERAL DAYS OF VIOLENCE AFTER A MENTALLY HANDICAPPED BLACK MAN WAS KILLED WHEN POLICE RESTRAINED HIM WITH A CHOKEHOLD HE WAS ONE OF FOUR BLACKS KILLED BY WHITE POLICE OFFICERS IN 1987 WHEN TAMPA PLAYED HOST TO THE SUPER BOWL GAME IN 1991 RACIAL PROBLEMS FLARED AGAIN OVER THE CITY'S ANNUAL CIVIC CELEBRATION THE GASPARILLA FESTIVAL THE TRADITIONAL MOCK INVASION BY 500 OF TAMPA'S BUSINESS LEGAL AND POLITICAL GENTRY DRESSED AS PIRATES WAS TO BE TELEVISED NATIONALLY BEFORE THE GAME BUT THE ALLWHITE ALLMALE GROUP CANCELED THE EVENT RATHER THAN YIELD TO PRESSURE FROM LOCAL BLACK LEADERS AND THE NATIONAL FOOTBALL LEAGUE TO INTEGRATE THAT SAYS JIM URBANSKI FORMER TAMPA TRIBUNE PUBLISHER AND INTERIM PRESIDENT OF THE GREATER TAMPA BAY CHAMBER OF COMMERCE WAS THE THING THAT CAUSED US THE BIGGEST EMBARRASSMENT MANY TAMPA BUSINESS LEADERS FAVOR RACIAL HARMONY FOR ITS OWN SAKE BUT THEY ALSO HAVE BECOME CONVINCED THAT GOOD RACE RELATIONS AND A STRONG ECONOMY ARE INEXTRICABLY LINKED IN THIS CITY OF 280000 SAYS MR URBANSKI I THINK THE COMMUNITY HAS RECOGNIZED THAT IT HAS AREAS TO WORK ON AND IT'S JUST GOOD BUSINESS TO HAVE A HEALTHY SOCIAL CLIMATE INDEED A SURVEY OF LOCAL EXECUTIVES BY THE TAMPA COMPANY GTEFLORIDA IN 1988 FOUND THAT RACIAL INCLUSION WAS TAMPA'S MOST PRESSING NEED ESSENTIAL FOR ECONOMIC PROGRESS YET SOME OF THE CITY'S OLD GUARD HAVE BEEN SLOW TO ACCEPT TAMPA'S CHANGING RACIAL DYNAMICS AND HAVE RESISTED BRINGING MORE MINORITIES INTO THE CITY'S SOCIAL AND ECONOMIC CENTER MEANWHILE FOR VARIOUS REASONS GROWTH HAS SLOWED IN A CITY WHOSE SKYLINE WAS RESHAPED BY THE GLEAMING NEW OFFICE TOWERS BUILT IN THE 1980S BOOM IN WHAT FUTURIST JOHN NAISBITT CALLED ONE OF THE NATION'S 10 CITIES OF GREAT OPPORTUNITY A DECADE AGO FULLY ONETHIRD OF OFFICE SPACE IS NOW VACANT COMPETITION FROM ST PETERSBURG AND FROM ORLANDO IN THE CENTER OF THE STATE HAS BECOME INTENSE CONSTRUCTION SOUNDS HAVEN'T BEEN HEARD IN SOME TIME AND MOST OF THE CRANES IN SIGHT ARE BIRDS AMERICA'S NEXT GREAT CITY IS SUCKING AIR CONCLUDES PATRICK DOHERTY AN ATTORNEY WHO LIVES IN NEARBY CLEARWATER AND PRACTICES LAW HERE AND NOW THIS THOUGH THE ABDUCTION OF NEW YORK STOCK BROKERAGE CLERK CHRISTOPHER WILSON OCCURRED 15 MILES FROM TAMPA THE CASE HAS BEEN LUMPED WITH THE CITY'S OTHER RACIAL PROBLEMS MANY RESIDENTS RESENT THE IMPUTATION POINTING OUT NOT ONLY THAT THE CRIME TOOK PLACE OUTSIDE CITY LIMITS BUT THAT THE DEFENDANTS AREN'T TRUE LOCALS BUT RATHER DISPLACED AND DISAFFECTED NORTHERNERS THEY WERE TRANSIENTS SAYS TOM MCEWEN A POPULAR TAMPA TRIBUNE SPORTS COLUMNIST AND CITY BOOSTER THEY'RE NOT TAMPA PEOPLE THEY'RE NOT OUR PEOPLE NONETHELESS THE ATTACK ON MR WILSON COMES ON THE HEELS OF 70 REPORTED HATE CRIMES IN THE TAMPA AREA LAST YEAR THE HIGHEST TOTAL OF ANY COUNTY IN FLORIDA AND SAYS TAMPA MAYOR SANDY FREEDMAN THERE HAS OBVIOUSLY BEEN DAMAGE THE CRIME'S HIGH PROFILE IN THE NATIONAL MEDIA THE TRIAL IS EXPECTED TO BE COVERED LIVE ON CABLE TELEVISION AND IS BEING FOLLOWED BY MAJOR NEWS ORGANIZATIONS HAS HAD A PREDICTABLY DOLEFUL EFFECT ON THE CITY'S IMAGE JIM CLARK WHO HEADS A NONPROFIT ORGANIZATION THAT PROMOTES TAMPA'S CRUCIAL TOURISM AND CONVENTION FACILITIES SAYS NUMEROUS GROUPS HAVE EXPRESSED RESERVATIONS ABOUT COMING TO THE CITY FOLLOWING THE ABDUCTION OF MR WILSON THIS CRIME HAS NOT HELPED IT MAKES OUR JOB MORE DIFFICULT WHETHER ATTITUDES WILL CHANGE HE SAYS DEPENDS ON THE OUTCOME OF THE TRIAL WE HAVE TO HOPE THESE GUYS ARE CONVICTED SO THAT THE CITY CAN MOVE ON THAT IT APPEARS WON'T BE EASY THE PROSECUTION IS BEING DIRECTED BY NEWLY ELECTED HILLSBOROUGH COUNTY STATE ATTORNEY HARRY LEE COE III UNTIL THIS YEAR A STATE JUDGE HE HASN'T PROSECUTED A CASE IN 22 YEARS MR COE NICKNAMED HANGING HARRY IN LOCAL LEGAL CIRCLES HAS HAD HIS DECISIONS REVERSED ON APPEAL MORE TIMES THAN ALL HILLSBOROUGH COUNTY'S OTHER SITTING CRIMINAL JUDGES COMBINED MOREOVER THE STATE'S CASE APPEARS THIN THE DEFENDANTS CHARLES P ROURK AND MARK A KOHUT WERE ROOMMATES AND DAY LABORERS ORIGINALLY FROM JOLIET ILL WHO LIVED IN A TRAILER PARK IN LAKELAND SOME 50 MILES EAST OF TAMPA THEY ALLEGEDLY JUMPED INTO THE BACK SEAT OF MR WILSON'S PARKED CAR AS HE WAS READING A NEWSPAPER BY A NEWSSTAND IN THE TOWN OF VALRICO OUTSIDE TAMPA AND FORCED HIM AT GUNPOINT TO THE ABANDONED ORANGE GROVE BOTH ARE CHARGED WITH KIDNAPPING ROBBERY AND ATTEMPTED MURDER THEY COULD HARDLY BE MORE COLORFUL SUSPECTS A FORMER PAPERMILL WORKER MR ROURK IS REMEMBERED BY HIS NEIGHBORS FOR HIS INTEREST IN HIGHPOWERED WEAPONS AND FOR HIS PIT BULL TERRIER NAMED CAESAR MR KOHUT WHO HAS A CRIMINAL RECORD FOR SELLING COCAINE IN ILLINOIS AND FOR PROSTITUTING HIS TEENAGE WIFE IN PENNSYLVANIA HAS A SMALL BLUE SWASTIKA TATTOOED ON HIS RIGHT HAND NEIGHBORS DESCRIBED HIM IN INTERVIEWS WITH SHERIFF'S INVESTIGATORS AS THE MEAN ONE WHO WANDERED ABOUT THE TRAILER PARK WITH A SEMIAUTOMATIC HANDGUN STRAPPED IN A SHOULDER HOLSTER OR SHOT AT STRAY CHICKENS WITH A CROSSBOW BOTH HE AND MR ROURK WERE HEAVY DRUG USERS THEIR NEIGHBORS TOLD INVESTIGATORS WHEN SHERIFF'S DEPUTIES LED THEM AWAY IN HANDCUFFS FIVE DAYS AFTER MR WILSON WAS ABDUCTED AND BURNED NEIGHBORS BURST INTO CHEERS BUT WHAT MAKES PROSECUTORS THINK THE TWO COMMITTED THE CRIME THERE ARE NO FIBERS NO HAIRS NO FINGERPRINTS NOT EVEN HANDWRITING SIMILARITIES ON THE HATE NOTE LEFT BEHIND THAT CONNECTS EITHER OF THEM TO MR WILSON THERE ARE NO WITNESSES OTHER THAN AN ALLEGED ACCOMPLICE WITH A CREDIBILITY PROBLEM THERE IS NO INDEPENDENT PROOF THAT THE TWO DEFENDANTS WERE EVEN TOGETHER THE DAY OF THE CRIME IT'S NOT THE STRONGEST SET OF FACTS CONCEDES CHIEF ASSISTANT STATE ATTORNEY LEN REGISTER A SEASONED STATE PROSECUTOR WHO IS BACKING UP MR COE IN THE CASE THE STATE'S CASE WILL HINGE LARGELY ON THE TESTIMONY OF JEFFREY RAY PELLETT WHO ALLEGEDLY FOLLOWED MR WILSON'S CAR IN A CHEVROLET BLAZER AND WITNESSED THE BURNING ORIGINALLY A CODEFENDANT MR PELLETT WHO IS 18 YEARS OLD STRUCK A PLEA AGREEMENT WITH PROSECUTORS IN EXCHANGE FOR LENIENCY MAMA INVESTIGATORS SAY HE TOLD HIS MOTHER IN A CONFESSION THAT ULTIMATELY LED TO THE ARRESTS WHY DID THEY HAVE TO BURN HIM THEY COULD HAVE SHOT HIM THEY HAD GUNS BUT MR PELLETT AN ADMITTED DRUG AND ALCOHOL ABUSER WITH AN EIGHTHGRADE EDUCATION HAS CHANGED HIS STORY FOUR TIMES RECANTING IT TWICE AND ALTERING KEY DETAILS INCLUDING WHO IT WAS THAT SPLASHED THE GASOLINE IT ALSO ISN'T CERTAIN THAT MR WILSON WILL BE ABLE TO IDENTIFY EITHER MR KOHUT OR MR ROURK IN COURT MR WILSON HAS IDENTIFIED MR KOHUT FROM A PACKET OF OLD PHOTOS MR KOHUT HAS PASSED A LIE DETECTOR TEST IN WHICH HE PROCLAIMED HIS INNOCENCE THAT WON'T BE ADMISSIBLE IN COURT BUT IT HAS CREATED DOUBTS ABOUT THE STATE'S CASE YOU JUST CAN'T TELL IF THEY HAVE THE RIGHT PEOPLE FROM THIS KIND OF EVIDENCE SAYS TAMPA CRIMINAL DEFENSE LAWYER BENNIE LAZZARA WHO ISN'T INVOLVED IN THE CASE TO THE EXTENT THAT THE TRIAL AFFECTS TAMPA'S IMAGE AMONG TOURISTS AND BUSINESSPEOPLE THE TIMING COULDN'T BE WORSE TWO YEARS AGO MAJOR LEAGUE BASEBALL LOOKED AT TAMPA BAY AND PASSED IT OVER OFFERING EXPANSION TEAMS TO MIAMI AND DENVER INSTEAD LAST MONTH THE TAMPA BAY LIGHTNING TAMPA'S FLEDGLING PROFESSIONALICEHOCKEY FRANCHISE BOLTED FOR ST PETERSBURG AND A TWOYEAR AGREEMENT TO PLAY IN THE DOMED STADIUM THERE LOCAL TAMPA OFFICIALS HAD REFUSED TO UPGRADE THE LIGHTNING'S FACILITIES AND A PROPOSAL TO BUILD A SEPARATE ARENA HAD COLLAPSED DOWNTOWN PLANS TO BUILD AN 800ROOM HOTEL NEXT TO TAMPA'S NEW 140 MILLION CONVENTION CENTER CRITICAL FOR THE CITY TO DRAW BIG CONVENTIONS ARE ON HOLD BECAUSE OF UNCERTAIN FINANCING MEANWHILE ORLANDO WITH MORE HOTEL ROOMS THAN ANY CITY IN THE COUNTRY AND HOME TO WALT DISNEY WORLD UNIVERSAL STUDIOS FLORIDA A NUMBER OF HIGHTECH COMPANIES AND A GROWING INTERNATIONALBUSINESS BASE HAS BEEN GAINING AS FLORIDA'S NEW CENTER OF ATTENTION NEARLY HALF THE SIZE OF TAMPA IT HAS BEEN GROWING NEARLY TWICE AS FAST TO BE SURE TAMPA IS HARDLY TURNING INTO A BACKWATER ITS ANNUAL 2 GROWTH RATE OF NEW JOBS CREATED IS STILL STRONGER THAN MIAMI'S AND NEARLY TWICE THE NATIONAL AVERAGE ACCORDING TO COGNETICS INC A CAMBRIDGE MASS ECONOMICRESEARCH FIRM THE PORT AUTHORITY IS AT WORK FINISHING AN IMPRESSIVE NEW CRUISESHIP FACILITY ANCHORED BY AN AQUARIUM THAT WILL BE AMONG THE NATION'S LARGEST AND ITS HARBOR ISLAND RETAIL AND RESIDENTIAL DEVELOPMENT IS FINALLY SHOWING SIGNS OF FILLING UP AND TURNING AROUND SOME BUSINESS LEADERS SAY TAMPA IS NO BETTER OR WORSE IN ITS RACE RELATIONS THAN ANY OTHER CITY TAMPA'S PROBLEM IS MORE BAD LUCK THAN BAD BLOOD SAYS DICK GRECO A LOCAL LOBBYIST FOR EDWARD DEBARTOLO THE SHOPPINGMALL DEVELOPER AND TAMPA HAS MADE SOME PROGRESS IN IMPROVING RACE RELATIONS THE GASPARILLA GROUP HAS OPENED ITS RANKS TO SEVERAL BLACK MEMBERS AND NEW EFFORTS TO IMPROVE ECONOMIC OPPORTUNITY ARE UNDER WAY A MINORITYBUSINESS DEVELOPMENT OFFICE IN THE CHAMBER OF COMMERCE HAS HELPED SEVERAL STARTUPS IN TAMPA'S BLACK COMMUNITY AND LAST MONTH MAYOR FREEDMAN WHO HAS BEEN SUCCESSFUL IN CREATING HOUSING AND SUMMER JOBS FOR LOWINCOME MINORITIES APPOINTED THE CITY'S FIRST BLACK POLICE CHIEF SEVERAL OTHER BLACKS HAVE BEEN APPOINTED TO CITY AND COUNTY BOARDS SINCE MR WILSON WAS ABDUCTED BUT THE CITY AND ITS BUSINESS LEADERS HAVE A WAY TO GO SO LITTLE HAS COME TO THE AFRICANAMERICAN COMMUNITY IN REAL TERMS SAYS BLACK COMMUNITY ORGANIZER ZENO FRANKS THAT IT SEEMS LIKE NOTHING THE MOST RECENT EVIDENCE WAS AN EFFORT BY TAMPA PORT OFFICIALS TO BUILD A 70 MILLION TOURIST ATTRACTION OUT OF A PIRATE VESSEL THAT HAD ONCE TRANSPORTED SLAVES THE PROJECT WAS PITCHED IN BOSTON LAST YEAR AND RAN INTO FLAK OVER THE SLAVE ISSUE BUT WHEN BROUGHT TO TAMPA PORT OFFICIALS SHORTLY AFTERWARD THE SLAVERY ASPECT OF THE ATTRACTION WASN'T DISCUSSED WITH THE CITY'S BLACK BUSINESS COMMUNITY OR POLITICAL LEADERS BEFORE IT WAS ANNOUNCED THIS WAS AN ISSUE OF DIGNITY OVER DOLLARS SAYS LOCAL NAACP PRESIDENT HEWITT E SMITH PORT OFFICIALS ONLY RELUCTANTLY BACKED DOWN IN JULY BUT THE FALLOUT CREATED LINGERING ILL WILL AND DISTRUST MEANWHILE THE NATIONAL FORUM FOR BLACK PUBLIC ADMINISTRATORS PULLED ITS PLANNED 2000MEMBER ANNUAL MEETING FROM TAMPA WHERE IT WAS SCHEDULED AS ONE OF THE CITY'S MAJOR CONVENTIONS NEXT YEAR CITING THE CITY'S POOR CIVILRIGHTS RECORD THE GROUP IS HOWEVER CONSIDERING TAMPA FOR ITS 1995 CONVENTION IT IS WITHIN THIS HEATED CONTEXT THAT THE HATECRIME TRIAL OF MR WILSON'S ALLEGED ATTACKERS WILL BE PLAYED OUT AND WHY SOME SEE THE CASE AS POSING A PARTICULAR DANGER TO THE RIGHTS OF THE DEFENDANTS PROSECUTORS WHO INSIST THAT THEIR SOLE CONCERN IS DOING THEIR BEST FOR MR WILSON FOUGHT HARD TO KEEP THE TRIAL IN TAMPA BUT EXTENSIVE PRETRIAL PUBLICITY FORCED IT TO BE MOVED TO WEST PALM BEACH PROSECUTORS HAD HOPED TO PICK THE JURY THERE AND FLY THEM TO TAMPA FOR THE TRIAL BUT A STATE APPEALS COURT SAID NO TO THAT ON FRIDAY HOLDING THE TRIAL IN TAMPA WOULD HAVE GIVEN THE PROSECUTION AN EDGE SAYS HILLSBOROUGH PUBLIC DEFENDER JULIANNE HOLT WHO REPRESENTS MR KOHUT THOUGH SEQUESTERED THE JURY WOULD HAVE BEEN MORE LIKELY TO BE INFLUENCED BY THE COMMUNITY AND THUS LESS INCLINED TO ACQUIT THE DEFENDANTS WITH THE TRIAL IN TAMPA SHE ARGUES WHILE PROSECUTORS CAN BE LESS SURE OF THE RESULT IN WEST PALM BEACH THEY BELIEVE THAT JURIES HAVE A TENDENCY TO CONVICT DEFENDANTS WHEN CRIMES ARE AS VIOLENTLY REPULSIVE AS THIS ONE THE TESTIMONY OF MR WILSON SHOULD HELP A SOFTSPOKEN AND GENTLE MAN OF JAMAICAN DESCENT MR WILSON REMAINS BY ALL ACCOUNTS REMARKABLY DEVOID OF HATE HIS TESTIMONY IS EXPECTED TO BE POWERFUL NOW EVERYONE WILL BE WATCHING THERE IS A LOT AT STAKE FOR THIS CITY SAYS MR SMITH OF THE NAACP THIS COULD HAVE HAPPENED ANYWHERE IN ANY COMMUNITY BUT IT DID HAPPEN HERE AND TAMPA HAS TO DEAL WITH IT 9308240022 930824 CORPORATE FOCUS SHRINKING AIRCRAFT MARKET FORCES CAE TO BRANCH OUT FLIGHT SIMULATOR TECHNOLOGY IS ADAPTED FOR MEDICAL AND INDUSTRIAL USES BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CAE INC THE WORLD'S LARGEST MAKER OF AIRCRAFT SIMULATORS HOPES TO REVIVE ITS SLOWING BUSINESS WITH THE HELP OF A MANIKIN THAT CAN BREATHE AND TWITCH THE LIFELIKE DUMMY EQUIPPED WITH AN AIR PUMP AND OTHER MECHANISMS IS PART OF A NEW SIMULATOR SYSTEM FOR HOSPITALS THAT ANESTHETISTS CAN PRACTICE ON WITHOUT RISKING ANYBODY'S LIFE IT IS ONE OF A RANGE OF NEW PRODUCTS IN THE MEDICAL AREA AND OTHER FIELDS THAT CAE IS DEVELOPING IN RESPONSE TO WEAK DEMAND FROM ITS TRADITIONAL CUSTOMERS AIRLINES AND THE MILITARY THE MARKETS WE'RE NOW SERVING DON'T OFFER THE GROWTH THAT WE'D LIKE TO SEE SO WE HAVE TO SEEK NEW PRODUCTS AND NEW MARKETS SAYS JOHN CALDWELL CAE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN ESSENCE THE COMPANY BELIEVES IT CAN CAPITALIZE ON ITS EXPERTISE IN HIGHTECH SIMULATION TO DEVELOP A HOST OF NOVEL PRODUCTS WHAT THEY'RE SELLING AT CAE IS REALLY THEIR BRAINPOWER SAYS AMIR KARIM ANALYST AT DLOUHY INVESTMENTS INC THE ANALYST BELIEVES THAT CAE'S PLANNED EXPANSION INTO NEW MARKETS MIGHT BE JUST THE TICKET TO GET INVESTORS EXCITED AGAIN ABOUT THE STOCK WHICH HAS LANGUISHED IN RECENT MONTHS AT ABOUT FIVE CANADIAN DOLLARS US379 ON THE TORONTO STOCK EXCHANGE WITHIN FIVE YEARS CAE'S NEW PRODUCTS WILL CONTRIBUTE ABOUT C100 MILLION US758 MILLION IN ANNUAL REVENUE MR KARIM PREDICTS ALTHOUGH SMALL NEXT TO CAE'S REVENUE OF C1 BILLION THE NEW PRODUCTS COULD REVERSE A THREEYEAR DECLINE IN THE COMPANY'S SALES MR CALDWELL SAYS IT'S TOO EARLY TO FORECAST HOW MUCH OF CAE'S FUTURE REVENUES WILL COME FROM NEW PRODUCTS BUT HE SAYS MR KARIM'S ESTIMATE OF C100 MILLION OF NEW REVENUE IS VERY CONSERVATIVE OTHER ANALYSTS ARE SKEPTICAL THAT CAE'S DIVERSIFICATION CAN HAVE MORE THAN A MARGINAL IMPACT ON SALES WHILE IT DIVERTS MANAGEMENT TIME AND RESOURCES UNFORTUNATELY CAE'S CORE MARKET IS THE ONE IN WHICH IT'S GOING TO LIVE OR DIE AN ANALYST SAYS THIS MARKET COMMERCIAL AIRLINE AND MILITARY BUSINESS ACCOUNTS FOR 90 OF CAE'S REVENUE CAE IS THE LARGEST SUPPLIER OF SIMULATORS AND TRAINING SYSTEMS TO THE US MILITARY IT ALSO HAS A 50 SHARE OF THE WORLD MARKET FOR COMMERCIAL AIRCRAFT SIMULATORS WHAT THIS MEANS MR CALDWELL SAYS IS THAT CAE ISN'T LIKELY TO GROW BY INCREASING MARKET SHARE EVEN WHEN DEMAND FOR ITS PRODUCTS PICKS UP A SIMULATOR WHICH COSTS AN ESTIMATED US10 MILLION TO US15 MILLION ALLOWS A PILOT TO TRAIN IN A NEW AIRCRAFT OR UNDER DIFFICULT FLYING CONDITIONS USING A COMPUTERGENERATED REPRODUCTION OF THE ACTUAL ENVIRONMENT MR CALDWELL HAS PUSHED CAE'S PLAN TO DIVERSIFY SINCE HE TOOK OVER THE TOP EXECUTIVE ROLE IN JUNE SUCCEEDING LONGTIME PRESIDENT DAVID RACE WHO BECAME CHAIRMAN MR CALDWELL PREVIOUSLY CAE'S CHIEF FINANCIAL OFFICER IS ESPECIALLY ENTHUSIASTIC ABOUT THE COMPANY'S MOVE INTO THE MEDICAL FIELD HE BELIEVES GREATER USE OF SIMULATORS TO TRAIN MEDICAL PRACTICTIONERS IN EMERGENCY PROCEDURES CAN HELP BRING DOWN MALPRACTICE INSURANCE COSTS MAKING SIMULATORS MORE ECONOMICAL FOR HOSPITALS ANESTHESIOLOGY IS A CASE IN POINT AFTER COMPLETING THEIR ACADEMIC WORK ANESTHETISTS GET TRAINING ON THE JOB WHICH MEANS THEY OFTEN DON'T ENCOUNTER UNCOMMON MEDICAL EMERGENCIES UNTIL YEARS LATER IN AN OPERATING ROOM A SIMULATOR CAN EXPOSE AN ANESTHETIST TO A VARIETY OF EMERGENCIES WITHOUT PUTTING A PATIENT AT RISK CAE'S SIMULATED ANESTHESIOLOGY MANNIKIN KNOWN AS SAM CONSISTS OF A MECHANIZED DUMMY HOOKED UP TO A COMPUTER WITH A SOPHISTICATED SOFTWARE PROGRAM THE ANESTHETIST ADMINISTERS DRUGS TO THE MANIKIN AS IF IT WERE A REAL PATIENT THEN HAS TO DEAL WITH ANY ABNORMAL REACTIONS THE MANIKIN CAN BE MADE TO VOMIT ITS PUPILS TO DILATE AND ITS FACE AND THUMBS TO TWITCH AS SYMPTOMS OF A MEDICAL EMERGENCY EVEN ITS LIPS CAN BE PROGRAMMED TO TURN BLUE TO AN ANESTHETIST IT HAS THE LOOK AND FEEL OF THE REAL THING SAYS DR JEFFREY COOPER AN ENGINEER AT MASSACHUSETTS GENERAL HOSPITAL WHICH RECENTLY JOINED WITH FOUR OTHER BOSTON HOSPITALS TO BUY THE FIRST SIMULATOR CAE HAS SOLD IN THE US THE SYSTEMS COST ABOUT US250000 CAE ALSO IS BUILDING WHAT IT HOPES WILL BE THE FIRST COMMERCIAL VERSION OF A TOTALLY IMPLANTABLE ARTIFICIAL HEART THE UNIVERSITY OF OTTAWA HEART INSTITUTE WHICH DEVELOPED THE PROTOTYPE SAYS IT GOES WELL BEYOND PREVIOUS TECHNOLOGIES THAT LITERALLY TIED A PATIENT TO AN EXTERNAL MACHINE THE OBJECTIVE IS TO HAVE THIS ARTIFICIAL HEART AS TOLERABLE TO THE PATIENT AS A PACEMAKER IS NOW SAYS DR WILBERT KEON DIRECTOR GENERAL OF THE HEART INSTITUTE IN ANOTHER AREA CAE AND A CANADIAN MINING COMPANY ARE JOINTLY TESTING A TELEROBOTIC SYSTEM THAT LETS A MINER WORK UNDERGROUND WITHOUT LEAVING THE SURFACE THE SYSTEM A SPINOFF OF A HELMETSHAPED DEVICE USED FOR TRAINING MILITARY PILOTS PROVIDES A 360DEGREE VISUAL IMAGE THROUGH THE HELMET'S GOGGLES SENSORS ADJUST THE IMAGE BY TRACKING THE USER'S EYE MOVEMENTS BY HOOKING THE DEVICE TO CAMERAS ATTACHED TO A REMOTE VEHICLE THE USER CAN DIRECT MACHINES TO WORK IN A MINE OR OTHER HAZARDOUS SITUATIONS IN ALL CAE SAYS IT HAS ABOUT 20 MAJOR INITIATIVES IN NEW PRODUCT AREAS IT IS WORKING WITH SEVERAL US OIL COMPANIES TO DEVELOP A SIMULATOR TO TRAIN REFINERY OPERATORS IT ALSO MIGHT GET INTO THE VIRTUAL REALITY ENTERTAINMENT BUSINESS BUT WE DON'T SEE OURSELVES BECOMING THE NEXT SEGA OR NINTENDO MR CALDWELL SAYS RELIEF FOR CAE'S CORE MARKETS APPEARS TO BE YEARS AWAY THE COMPANY'S MILITARY BUSINESS HAS DECLINED AS GOVERNMENT BUDGETS TIGHTEN FORCING DEFENSE OFFICIALS TO REVIEW THEIR SHOPPING LISTS FOLLOWING THE END OF THE COLD WAR ON THE COMMERCIAL SIDE RECESSION HAS DEPRESSED AIRLINES' PURCHASES OF NEW AIRCRAFT AND THUS SIMULATORS AND PROFIT MARGINS HAVE BEEN PUMMELED AS THE BIG SIMULATOR MAKERS FIGHT OVER THE DWINDLING MARKET WE'RE TWO YEARS AWAY FROM SEEING ANY MOVEMENT IN THAT MARKET MR CALDWELL SAYS MEANWHILE CAEELECTRONICS THE MONTREAL UNIT THAT MAINLY MAKES COMMERCIAL AIRLINER SIMULATORS HAS DEMONSTRATED WHAT PRODUCT DIVERSIFICATION CAN MEAN FOR CAE THE SUBSIDIARY HAS GONE AFTER MORE CONTRACTS TO BUILD SIMULATORS AND CONTROL SYSTEMS FOR POWER PLANTS AND DAMS MAXWELL RUTHERFORD CAEELECTRONICS' SENIOR VICE PRESIDENT OF BUSINESS DEVELOPMENT SAYS THIS BUSINESS NOW ACCOUNTS FOR 15 OF THE UNIT'S C370 MILLION OF REVENUE UP FROM 5 JUST A FEW YEARS AGO ALTHOUGH THE AIRLINE BUSINESS HAS BEEN SLOW OVER THE LAST FEW YEARS OUR ANNUAL SALES HAVEN'T BEEN DECREASING WE'VE MANAGED TO SMOOTH IT BECAUSE WE HAVE A LOT OF DIFFERENT STRENGTHS TO OUR BOW MR RUTHERFORD SAYS GM HUGHES ELECTRONICS CORP THOMSONCSF OF FRANCE LORAL CORP 9308240021 930824 CRACKING THAT POSTSOVIET MARKET BY DAVID BROOKS LVIV UKRAINE YOU SEE THE LAPTOP EXPLORER STRANDED IN THE WAITING ROOMS OF OBSCURE POSTSOVIET AIRPORTS ONCE A NORMAL WESTERN BUSINESSMAN HE WAS DISPATCHED TO SEIZE THE TREMENDOUS OPPORTUNITIES CREATED BY THE FALL OF COMMUNISM SO HE SITS ON A PILE OF LUGGAGE TAPPING AWAY MANIACALLY ON HIS LAPTOP HIS PUPILS STRANGELY DILATED HIS ONCEPROUD WINGTIPS SCUFFED AND FRAYING HIS STAINED ANORAK PULLED TIGHTLY AROUND HIS CHEST HIS PLANE HAS BEEN DELAYED 36 HOURS FOR LACK OF FUEL BUT HE CAN'T RETURN TO THE LOCAL INTOURIST HOTEL BECAUSE HE CURSED AT ONE OF THE FLOOR LADIES AFTER SHE ACCUSED HIM OF STEALING A TOILET THE ONE IN HIS ROOM HAD ALREADY BEEN PINCHED BY THE TIME HE CHECKED IN SHELLSHOCKED MEN AND WOMEN SPEND THEIR DAYS HACKING THROUGH THE POSTSOVIET WILDERNESS IN SEARCH OF A NEARMYTHICAL CREATURE AN HONEST JOINTVENTURE PARTNER MANY MODERN DIOGENES HAVE COME THIS WAY BEFORE TAKE THE AMERICAN COMPANY THAT PUT UP MONEY FOR THE CONSTRUCTION OF A BUILDING IN MOSCOW BUT RETURNED TO FIND NOTHING BUT A CONSTRUCTION SHED ON THE LOT AND THE RUSSIAN PARTNERS DRIVING MERCEDES CARS AND THEN THERE WAS THE EUROPEAN AGRICULTURAL CONCERN THAT DISPATCHED 1 MILLION IN TOPQUALITY SEED TO ITS UKRAINIAN PARTNER ONLY TO RECEIVE A LETTER TO THE EFFECT OF THANKS FOR THE GIFT WE NOW CONSIDER OUR RELATIONSHIP AT AN END THEY HAD CONTRACTS OF COURSE BUT THIS IS THE LAND OF NO LEGAL RECOURSE THEY SHOULD HAVE SIGNS AT THE AIRPORTS WELCOME TO UKRAINE YOU HAVE NO LEGAL RECOURSE SOME COMPANIES HAVE TRIED TO GET AROUND THE SHAMBLES OF THE POSTSOVIET LEGAL STRUCTURE BY WRITING INTO CONTRACTS THAT DISPUTES WILL BE SETTLED ACCORDING TO THE CORPORATE LAWS OF A THIRD COUNTRY SUCH AS SWEDEN DECISIONS MAKE INTERESTING READING BUT LITTLE MORE THERE'S NO ENFORCEMENT MECHANISM IN THE FORMER SOVIET UNION THE RULE HERE IS THAT IT MAKES NO SENSE TO JUDGE THE DEAL OR THE CONTRACT JUST JUDGE THE PERSON BUT AN HONEST FACE IS HARD TO FIND COMPANIES OFTEN VISIT 80 OR 100 LOCAL ENTERPRISES BEFORE SELECTING A JOINTVENTURE PARTNER THESE SORTS OF MEETINGS ARE NOT ALWAYS THRILLING THE CONVERSATIONAL STYLE OF POSTSOVIET BUSINESSMEN OVER 50 YEARS OF AGE CONSISTS MOSTLY OF RAMBLING MONOLOGUES ON THE SPEAKER'S GLORIOUS ACCOMPLISHMENTS UPDATED VERSIONS OF THE WAY NIKITA KHRUSHCHEV USED TO BOAST ABOUT THE SUCCESS OF THE MOST RECENT FIVEYEAR PLAN THESE AGENDABUSTING SPEECHES ARE INTERRUPTED ONLY BY HISTRIONIC ULTIMATUMS BIZARRE CONSPIRACY THEORIES AND IMPASSIONED PLEAS FOR MONEY MODERN KHRUSHCHEV IF YOU GIVE US 50 MILLION WE WILL MAKE THE FINEST WIDGETS ON EARTH LAPTOP EXPLORER THAT'S A LOT OF MONEY MODERN KHRUSHCHEV OK GIVE US 5 MILLION WHAT ABOUT 250000 ONE VOLVO AFTER THIS SORT OF FRUITFUL EXCHANGE THERE WILL BE A LONG DINNER AND THE LAPTOP EXPLORER WILL BE ABLE TO ENJOY HIS 14TH SUCCESSIVE MEAL OF CAVIAR AND ROLLED MEAT THERE WILL BE LITTLE CONVERSATION BUT PLENTY OF TOASTS GROWING INCREASINGLY SENTIMENTAL AS THE NIGHT WEARS ON SO THAT BY THE END THERE WILL BE HUGGING AND CRYING AND THE LAPTOP EXPLORER WILL WAKE UP THE NEXT MORNING STILL FEELING WHERE HIS PARTNER'S RAZOR STUBBLE RUBBED HIS CHEEK THE NIGHT BEFORE WE ARE THE LAST OF THE IDEALISTS WRITES RUSSIAN BUSINESSMAN SERGEI PROTOSOV IN AN ARTICLE INTENDED FOR WESTERN INVESTORS I DO NOT SUPPOSE THIS THOUGHT HAS EVEN OCCURRED TO YOU AS YOU SIPPED YOUR GIN AT THOSE CONSERVATIVE BUSINESS PARTIES IN THE WEST WHERE EVERYONE HAS AN IDENTICAL SMILE AND THE GUESTS SWAP BUSINESS CARDS AND TALK SHOP BOY IS HE WRONG WHAT DOES HE THINK BRINGS WESTERN BUSINESSMEN TO HIS RATHOLE OF A COUNTRY THE COMFORTABLE LIVING THE EASY DEALMAKING IT IS PRECISELY WHAT HE CALLS THE IDEALISM BUT WHICH REALLY IS THE UNFATHOMABLENESS OF IT ALL EXECUTIVES BACK HOME AT THE HEAD OFFICES SELDOM FIND THEMSELVES SURROUNDED BY THUGS IN SWEATSUITS WHO ARE THREATENING TO BURN DOWN THE CORPORATE HEADQUARTERS UNLESS THEY GET A CUT OF THE QUARTERLY PROFITS IN THE FORMER SOVIET UNION THIS IS A RITE OF PASSAGE THE WESTERNER HAS TO SENSE WHETHER THESE ARE JUST RANDOM HOODLUMS WANDERING IN OFF THE STREET OR MEMBERS OF A REAL CRIMINAL ORGANIZATION ASPIRING SECURITY GUARDS OR GUNPOWDER FREAKS LAPTOP EXPLORERS INSIST THEY DON'T PAY SUCH PEOPLE OFF BUT IN THE PAST FEW WEEKS THINGS HAVE GOTTEN UGLY A BRITISH BUSINESSMAN WAS STABBED TO DEATH BY SEVERAL ASSAILANTS IN HIS ROOM IN ONE OF MOSCOW'S FANCIER HOTELS THE DIRECTOR OF A RUSSIANAMERICAN RESTAURANT WAS SHOT IN THE HEAD BY A MASKED ASSASSIN ON JULY 21 SEVEN MEN WITH MACHINE GUNS AND PISTOLS OPENED FIRE ON THE SHOWROOM OF AN ITALIANRUSSIAN CAR DEALERSHIP THAT HAD SPURNED A PROTECTION THREAT SECURITY GUARDS SHOT BACK AND BEFORE THE BATTLE WAS OVER FOUR PEOPLE WERE DEAD AND AN ALFAROMEO WAS RIDDLED WITH BULLETS TWO SORTS OF WESTERN BUSINESSES CAN SURVIVE IN THIS ENVIRONMENT THE BIG AT&TSTYLE BEHEMOTHS THAT MAKE THE GROUND SHAKE WHEN THEY WALK AND THE ONEPERSON COMPANIES THAT HOPE THEY ARE TOO SMALL TO BE NOTICED DAVE ZEIGLER IS ONE OF THE LATTER HE RAN AN EMPLOYMENT AGENCY FOR EIGHT YEARS IN HEMET CALIF BUT ONE DAY GOT A WORKERS' COMP BILL FOR 75000 AND DECIDED IT WAS TIME TO CLOSE SHOP AND HEAD EAST WHEN HE FIRST ARRIVED IN KIEV MR ZEIGLER CHASED THE SORTS OF EXPORT DEALS THAT ARE THE STUFF OF FANTASY FOR POSTSOVIET PROSPECTORS EVERYTHING FELL THROUGH AND AFTER 11 MONTHS OF EARNING NOT A KOPEK MR ZEIGLER TOOK HIS GUITAR OUT TO THE CITY'S MAIN SQUARE AND BEGAN SINGING COUNTRY AND WESTERN TUNES PULLING IN 6000 UKRAINIAN COUPONS HE FIGURED THAT HE'D MADE ENOUGH MISTAKES TO QUALIFY AS A CONSULTANT AND NOW ARRANGES HOUSING AND GIVES ADVICE TO COMPANIES DOING BUSINESS IN KIEV PRIMARILY HE CORRECTS THE MISTAKES OF CLIENTS WHO BEHAVE NORMALLY PEOPLE WHO PUT THEIR ADDRESSES ON THEIR BUSINESS CARDS WHO PUT UP A SIGN TO ANNOUNCE THEIR PRESENCE WHO BROADCAST A SUCCESS WHO DON'T REALIZE THAT AN APARTMENT OFFERED FOR 1500 A MONTH MIGHT BE AVAILABLE FOR ONEFIFTH THAT HE'S ALSO A FOUNTAIN OF SCUTTLEBUTT THE LAPTOP EXPLORERS TEND TO TAKE GREAT PLEASURE IN RUDIMENTARY ACCOMPLISHMENTS TAKING DELIVERY ON A SHIPMENT OF MODULAR FURNITURE FROM THE WEST MAKING CONTACT WITH THE LAST OF THE DOZEN OR SO AGENCIES THAT HOLD EXCLUSIVE RIGHTS TO A PIECE OF PROPERTY SUCCESSFULLY BUYING BACK A PIECE OF MACHINERY FROM THE PEOPLE WHO STOLE IT FROM THEM SOMETIMES YOU MEET AN EXPLORER WHO'S GONE NATIVE HIS WINGTIPS HAVE BEEN EXCHANGED FOR CONSTRUCTION BOOTS HE WEARS A CONCRETECOLORED SOVIET SHIRT UNDER A SOILED SWEATER HE HINTS AT THE DARK FORCES ALL AROUND AND WHEN THE DISCUSSION GETS SERIOUS HE BREAKS OUT IN POEM OR SONG JUST LIKE THE LOCALS YOU KNOW THESE RUSSIANS DESIGNED A SPACE STATION WITH ALMOST NO COMPUTERS HE REPEATS FOR COMBATING WESTERN CONDESCENSION HAS BECOME HIS PASTIME PERHAPS HE WILL NEVER BE ABLE TO RETURN TO THE WEST TO BE ONE MORE VICE PRESIDENT ALONG A CORRIDOR WORKING IN CONDITIONS THAT MAKE SENSE POSSIBLY HE WILL VENTURE EVER DEEPER INTO THE WILDERNESS IN PURSUIT OF SUBSIDIARY AGREEMENTS THEN IN A 3ANIGHT INTOURIST HOTEL ROOM IN A FORMERLY CLOSED SOVIET CITY HE WILL HAVE ONE LAST DELIRIOUS FANTASY OF A WESTERNSTYLE SALAD BAR CRAMMED WITH FRESH VEGETABLES AND HIS BODY BROKEN BY HARD TRAVEL WILL SHUT DOWN AND HE WILL BE DEAD THE STANDARD BRIBE FOR EXPEDITING A BURIAL IN THE FORMER SOVIET UNION IS ABOUT 7 MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9308240020 930824 TECHNOLOGY CABLE COMPANY IS SET TO PLUG INTO INTERNET BY MARY LU CARNEVALE AND JOHN J KELLER STAFF REPORTERS OF THE WALL STREET JOURNAL CABLE TELEVISION WILL CONNECT TO THE INTERNET INFORMATION PATHWAY TO MILLIONS OF PERSONALCOMPUTER USERS WORLDWIDE EARLY NEXT YEAR THROUGH A DIRECT LINKUP VIA CONTINENTAL CABLEVISION INC ONE OF THE NATION'S LARGEST CABLE OPERATORS THE SERVICE WHICH COULD GREATLY ALTER DELIVERY OF ELECTRONIC INFORMATION WOULD ALLOW CONTINENTAL'S CUSTOMERS TO PLUG PCS AND A SPECIAL MODEM DIRECTLY INTO CONTINENTAL'S CABLE LINES SAID WILLIAM SCHRADER PRESIDENT OF PERFORMANCE SYSTEMS INTERNATIONAL INC A HERNDON VA NETWORK SERVICES COMPANY THAT IS CONTINENTAL'S PARTNER IN THE PROJECT THE CABLE LINK WOULD BYPASS LOCAL PHONE AND OTHER SPECIAL HOOKUPS TO ACCESS THE INTERNET DIRECTLY MORE SIGNIFICANTLY IT WOULD ALLOW CUSTOMERS USING PCS TO FETCH WHOLE KINDS OF INFORMATION DOWNLOADING QUICKLY ON BOOKS AND OTHER DATA FROM THE WORLD'S GREATEST LIBRARIES THIS TEXT WOULD MOVE AT INFORMATION SUPERHIGHWAY SPEEDS AT AS FAST AS 10 MILLION BITS A SECOND RATHER THAN THE COMPARATIVELY SLUGGISH SPEED OF 2400 BITS A SECOND FROM CONVENTIONAL PHONEMODEM HOOKUPS MR SCHRADER SAID MORE THAN JUST HIGHCAPACITY RECEPTION HOWEVER THE HIGHSPEED LINK WOULD GIVE USERS MANY THINGS THEY CAN'T GET TODAY IT PROMISES TO BRING MULTIMEDIA SERVICES THROUGH THE CABLE LINE TO THE HOME OR BUSINESS INCLUDING TVQUALITY VIDEO AND EVEN HIGHFIDELITY MUSIC THROUGH THE PERSONAL COMPUTER THIS ISN'T SOME FLUFFY PIEINTHESKY VISION SAID DAVID FELLOWS A SENIOR VICE PRESIDENT AT CONTINENTAL ADDED MR SCHRADER OTHER COMPANIES SUCH AS TIME WARNER INC IN ORLANDO ARE TALKING ABOUT ELABORATE MULTIMEDIA SERVICE TESTS BUT OUR PLAN IS SMALL SIMPLE AND EASY THIS WILL WORK BUT WHILE THE NEW SERVICE HOLDS MUCH PROMISE NO ONE IS SURE WHAT CONSUMER DEMAND WILL BE ESPECIALLY AT AN ESTIMATED COST OF 70 TO 100 A MONTH INDEED IT WAS CONSUMER OUTRAGE OVER ESCALATING CABLE RATES THAT DROVE CONGRESS TO PASS THE 1992 CABLE ACT PERFORMANCE SYSTEMS WHICH PROVIDES A MEANS FOR COMPUTER CUSTOMERS TO HOOK UP TO THE INTERNET SYSTEM PLANS TO INSTALL COMPUTER ROUTERS IN THE CONTINENTAL NETWORK THESE SYSTEMS KEEP THE DATA TRAFFIC FLOWING UNIFORMLY AND QUICKLY BY SCRUTINIZING THE INCOMING INFORMATION INSTANTLY FIGURING OUT WHERE IT IS HEADED AND PLACING IT IN ELECTRONIC PACKETS BEFORE SENDING IT ON ITS WAY THE ROUTERS WILL BE INSTALLED IN THE MAIN HUBS OR HEADEND FACILITIES IN CONTINENTAL'S VAST NETWORK ALLOWING AN EASY EXTENSION OF THE NEW INTERNET SERVICE TO HOMES AND BUSINESSES TETHERED TO THE CABLE COMPANY FOR THE CUSTOMER'S HOME OR BUSINESS COMPUTER PERFORMANCE SYSTEMS WILL PROVIDE A SPECIAL COMPUTER MODEM TO REACH THE SERVICE THE TWO COMPANIES PLAN TO ANNOUNCE THE SERVICE PLAN TODAY AT AN INDUSTRY TRADE SHOW IN SAN FRANCISCO THE FIRST HOOKUPS ARE SCHEDULED TO TAKE PLACE IN CAMBRIDGE MASS WHERE CONTINENTAL HAS MANY SUBSCRIBERS CONNECTED TO HARVARD UNIVERSITY AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE PLANNED SERVICE IS ONLY THE LATEST OF USES FOR THE FASTGROWING INTERNET THE WORLD'S BIGGEST COMPUTER NETWORK A NETWORK OF NETWORKS IN FACT TRAFFIC GROWTH IS ESTIMATED AT A STAGGERING 10 A MONTH FUELED LARGELY BY NEW COMMERCIAL FOREIGN AND STUDENT USERS A CABLETV LINK COULD WELL ACCELERATE THAT RATE EXPERTS SAY MORE THAN 10000 COMPUTER NETWORKS WITH PERHAPS 15 MILLION TO 20 MILLION USERS IN MORE THAN 50 COUNTRIES PLUG INTO THE INTERNET GROWTH THEY SAY IS LIMITED ONLY BY THE COMPLEXITY OF THE INTERCHANGES AT WHICH USERS ENTER THIS INFORMATION HIGHWAY THE MODEL FOR THE INFORMATION SUPERHIGHWAY OF THE FUTURE ADVOCATED BY THE CLINTON ADMINISTRATION CURRENTLY ALL THAT BINDS THESE USERS IS A COMMON PROTOCOL THAT LETS THEM WORK TOGETHER EXPLAINED DOUGLAS VAN HOUWELING VICE PROVOST FOR INFORMATION TECHNOLOGY AT THE UNIVERSITY OF MICHIGAN AND A BOARD MEMBER OF MERIT NETWORK INC MERIT IN A PARTNERSHIP WITH INTERNATIONAL BUSINESS MACHINES CORP AND MCI COMMUNICATIONS CORP RUNS THE NATIONAL SCIENCE FOUNDATION NETWORK THE INTERNET'S HIGHSPEED BACKBONE SIMPLIFYING USER ACCESS AS CONTINENTAL CABLEVISION PROPOSES WILL DETERMINE WHETHER INTERNET WILL SERVE THE COMPUTING MASSES OR REMAIN A ROUTE TRAVELED ONLY BY SCIENTISTS RESEARCHERS PROFESSORS AND STUDENTS SAY CURRENT USERS WE'RE STILL BUILDING THE ROAD TO USABILITY SAID ED KROL AN ASSISTANT DIRECTOR AT THE UNIVERSITY OF ILLINOIS'S COMPUTING AND COMMUNICATIONS SERVICE OFFICE AND AUTHOR OF INTERNET GUIDEBOOKS WE CURRENTLY HAVE ONE LANE AND A LOT OF MEN WORKING MEANTIME BIG ENTERTAINMENT AND TELEPHONE COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO TIME WARNER AND U S WEST INC ARE BUILDING THEIR VERSIONS OF THE SUPERHIGHWAY THEY SAY WILL PUMP INTERACTIVE MOVIES GAMES HOME SHOPPING AND OTHER MULTIMEDIA FARE THROUGH TV SETS TO US HOMES MANY INTERNET AFICIONADOS DON'T WANT TO BE LEFT OUT OF THE HOME MARKET AT A RECENT MEETING IN AMSTERDAM THE VOLUNTEERS WHO FIGURE OUT HOW TO KEEP THE NETWORK MOVING FORWARD BEGAN GRAPPLING WITH WAYS TO IMPROVE THE INTERNET'S ABILITY TO CARRY AUDIO AND VIDEO TRAFFIC EARLIER THIS YEAR INTERNET GURU CARL MALAMUD LAUNCHED THE NETWORK'S FIRST COMPUTERRADIO TALK SHOW EACH WEEK INTERVIEWING A COMPUTER EXPERT HE'S NOW MAKING TECHNICAL ARRANGEMENTS FOR CONGRESS'S FIRST HEARING ON THE INTERNET TO BE CARRIED LIVE ON THE INTERNET REP EDWARD MARKEY THE MASSACHUSETTS DEMOCRAT WHO HEADS THE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE WANTS THE HEARING TO BE AN EYEOPENER FOR LAWMAKERS AND THEIR AIDES FEW OF WHOM ARE FAMILIAR WITH DATA HIGHWAYS LET ALONE HAVE MASTERED THE INTERNET'S ABSTRUSE RULES JUST HOW FRUSTRATING IS IT IT IS AS IF YOU WERE TO INVITE ME TO DINNER AND GIVE YOUR ADDRESS IN LONGITUDE AND LATITUDE SAID LARRY IRVING WHO AS HEAD OF THE COMMERCE DEPARTMENT'S NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION HAS A LEAD ROLE IN SHAPING THE INFORMATION SUPERHIGHWAY MR IRVING'S GOALS INCLUDE EXPANDING ACCESS TO THE INTERNET RIGHT NOW IT IS BASICALLY UTILIZED BY COMPUTER HACKS MR IRVING SAYS WE NEED TO WORK WITH EXISTING USERS TO MAKE IT MORE ACCESSIBLE TO THE GENERAL PUBLIC STUDENTS OR EMPLOYEES AT INSTITUTIONS OR COMPANIES ALREADY HOOKED INTO THE INTERNET NEED ONLY ACQUIRE AN ACCESS CODE THAT ALLOWS THEM TO DIAL UP THE HOST COMPUTER TYPE IN A PASSWORD AND LOG ON OTHERS MUST SUBSCRIBE TO AN ONLINE SERVICE SUCH AS COMPUSERVE PRODIGY THE WELL OR NEXT YEAR CONTINENTAL CABLEVISION A GROWING NUMBER OF PUBLIC LIBRARIES ALSO OFFER INTERNET LINKS STILL THE PATHWAYS TO INFORMATION REMAIN TORTUOUS A RECENT FIRSTTIME TRAVELER ON THE INTERNET ENCOUNTERED INTERACTIVE INSTRUCTIONS SUCH AS TRY GOPHER AND WWW TOO IMPORTANT NOTE IF YOU TRY GOPHER OR ARCHIE OR WAIS AND THE SCREEN DISPLAY DOES NOT LOOK RIGHT OR RESPOND PROPERLY READ THE HELP FILE ON TROUBLESHOOTING TYPE HELP AT THE SIG MAIN MENU AND SCAN THE FILES FOR THE TROUBLESHOOTING FILE FINALLY CONNECTED TO THE LIBRARY AT ITALY'S UNIVERSITY OF PISA THE USER SOUGHT INFORMATION ABOUT THE LEANING TOWER BUT RECEIVED INSTEAD A YARN ABOUT AN ORIENTAL WITCH IN A TOWER DESPITE OBSCURE COMPUTERESE INTERNET IN THE PAST THREE YEARS HAS BEGUN TO REACH PRIMARY AND SECONDARY SCHOOLS BUSINESSES AND MANY INDIVIDUALS WITH PCS MODEMS AND PATIENCE MOST INDIVIDUALS USE DIALUP SERVICES SUCH AS COMPUSERVE WHILE BUSINESSES GENERALLY GET CONNECTIONS THROUGH COMMERCIAL PROVIDERS SUCH AS PERFORMANCE SYSTEMS AND ADVANCED NETWORKS & SERVICES OF ANN ARBOR MICH THE THING THAT ROPES MOST PEOPLE INTO USING THE INTERNET IS ELECTRONIC MAIL WITH COLLEAGUES ALL OVER THE WORLD SAID MR KROL AT THE UNIVERSITY OF ILLINOIS THAT'S BECOMING MORE IMPORTANT ESPECIALLY AS TRAVEL BUDGETS TIGHTEN AND PEOPLE WANT TO SAVE TIME AS WELL AS MONEY ONCE ON THE NETWORK USERS CAN SUBSCRIBE TO MAILING LISTS THAT LET THEM RECEIVE NEWSLETTERS OR EXCHANGE ELECTRONIC MAIL ON HUNDREDS OF TOPICS RANGING FROM COMPUTER AND NETWORK MANAGEMENT ISSUES TO QUILTING RAILROADS SHAKESPEARE 3D PHOTOGRAPHY BREWING BEER AT HOME AND MUSIC THE INTERNET ALSO BOASTS A LARGE COLLECTION OF SUPPORT GROUPS FOR PEOPLE WITH VARIOUS AILMENTS FROM AIDS TO WORKPLACE INJURIES ON CAMPUS MR KROL SAID STUDENTS GET INTERNET ACCOUNTS AS THEY WALK IN THE DOOR AND FOR THOSE IN ENGINEERING AND HARD SCIENCES IT IS BECOMING HARDER AND HARDER TO SURVIVE WITHOUT ELECTRONIC MESSAGING TO COMMUNICATE WITH PROFESSORS AND PEERS MUCH BUSINESS DEMAND FOR INTERNET CONNECTIONS IS DRIVEN BY NEWLY MINTED COLLEGE GRADUATES MANY OF WHOM WERE HOOKED ON THE INTERNET BEFORE THEIR FIRST SEMESTER JOEL HOLVECK A RECENT SAN ANGELO TEXAS HIGH SCHOOL GRADUATE WITH A PERFECT 800 ON HIS MATH SATS CHOSE TEXAS A&M BASED IN PART ON THE PROSPECT OF A DIRECT INTERNET CONNECTION IN HIS DORM ROOM AS THEIR STUDENTS BECOME MORE RELIANT ON THE INTERNET UNIVERSITIES ARE SCRAMBLING TO UPGRADE COMPUTER CONNECTIONS TO DORMITORY ROOMS AT ILLINOIS MR KROL SAYS ABOUT 35 OF THE STUDENTS USE COMPUTERS IN THEIR DORM ROOMS AND THE UNIVERSITY HAS BEGUN LINKING DORMITORIES DIRECTLY TO THE CAMPUS NETWORK MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9308240019 930824 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY AUGUST 11 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9308240018 930824 BUSINESS BRIEFS AIR CANADA ENTERED INTO A CODESHARING AGREEMENT WITH KOREAN AIR FOR FLIGHTS BETWEEN CANADA AND SOUTH KOREA THE ACCORD WHICH TAKES EFFECT NEXT MONTH WILL ENABLE THE AIRLINES TO EXCHANGE SEATS AND CARGO PALLETS ON FLIGHTS BETWEEN THE COUNTRIES USA WASTE SERVICES INC SAID THE CITY OF CHARLESTON WVA SELECTED IT TO OPERATE THE CITY'S LANDFILL UNDER A PROPOSED 25YEAR LEASE THE LANDFILL WILL GENERATE AN ESTIMATED 3 MILLION A YEAR IN REVENUE OFFICE DEPOT INC WHICH OPERATES OFFICEPRODUCTS STORES IN THE US AND CANADA SIGNED LICENSING AGREEMENTS TO OPEN STORES IN COLOMBIA AND ISRAEL TERMS WEREN'T DISCLOSED JENNIFER CONVERTIBLES INC WILL OPEN 12 COMPANYOWNED JENNIFER LEATHER STORES WHICH SELL LEATHER FURNITURE IN THREE DIFFERENT MARKETING AREAS IN 1994 ACME METALS INC WILL INDEFINITELY SUSPEND PRODUCTION AT TWO MILLS THAT ACCOUNT FOR LESS THAN 4 OF ITS STEEL SHIPMENTS THE MOVE WILL REDUCE ITS WORK FORCE BY 40 WITH SOME OF THE CUTS TO BE MADE THROUGH ATTRITION 9308240016 930824 TRAVEL MORE HOTELS TO OFFER PLAN FOR AIR MILES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FREE ROOMS ARE NICE BUT HOTEL COMPANIES INCREASINGLY ARE OFFERING THEIR BEST GUESTS SOMETHING MORE VALUABLE FREQUENTFLIER MILES STARTING NEXT WEEK HOLIDAY INN AND SHERATON WILL OFFER AIRLINE MILES ON SEVERAL MAJOR CARRIERS AS AN ALTERNATIVE TO HOTEL POINTS THE MOVES ARE SIMILAR TO A MARRIOTT CORP INITIATIVE IN APRIL WHEN THE HOTEL COMPANY OVERHAULED THE INDUSTRY'S LARGEST FREQUENTSTAY PROGRAM BY ALLOWING GUESTS TO ACCUMULATE MILES ON ONE OF SIX CARRIERS HYATT CORP IS EXPECTED TO ANNOUNCE A COMPARABLE PLAN LATER THIS YEAR ALTHOUGH HYATT SAYS NO CHANGES ARE IMMINENT THE HOTELS AREN'T ABOLISHING THEIR FREQUENTSTAY PROGRAMS GUESTS CAN STILL STOCKPILE POINTS FOR FREE ROOMS UPGRADES AND DEPENDING ON THE HOTEL WEEKEND VACATIONS SPORTSWEAR OR APPLIANCES BUT ADDING MILES TO THE MIX REPRESENTS AN IMPORTANT CHANGE FOR HOTELS WHICH FOLLOWED AIRLINES INTO THE FREQUENCY MARKETING BUSINESS AND FOR 10 YEARS HAVE TRIED IN VAIN TO DUPLICATE THE CARRIERS' SUCCESSES FREQUENTSTAY PROGRAMS NEVER HAVE SPAWNED THE INTENSE BRAND LOYALTY THAT THE AIRLINES' PROGRAMS CREATED PARTLY BECAUSE TRAVELERS STAY IN HOTELS BASED UPON LOCATION OR SERVICE RATHER THAN FREEBIES TO BE SURE MANY GUESTS TAKE ADVANTAGE OF THE HOTEL GIVEAWAYS BUT LODGING EXECUTIVES HAVE LEARNED WHAT CREDIT CARD ISSUERS TELEPHONE COMPANIES AND OTHER BUSINESSES WITH AIRLINE TIEINS ALREADY KNOW IN FREQUENCY PROGRAMS MILES ARE THE CURRENCY OF CHOICE IN AIRLINES A MILE IS A MILE IS A MILE AND YOU CAN COMPARE WHICH AIRLINE HAS THE BEST PROGRAM BUT YOU CAN'T COMPARE HOTELS BECAUSE THERE'S NO STANDARD CURRENCY SAYS RANDY PETERSEN EDITOR OF INSIDE FLYER A TRAVEL PUBLICATION BASED IN COLORADO SPRINGS COLO MANY HOTELS HAVE HAD AIRLINE TIEINS THAT PERMITTED GUESTS TO FATTEN THEIR FREQUENTFLIER ACCOUNTS BUT CUSTOMERS USUALLY WERE REQUIRED TO FLY THE SAME CARRIER THAT THEY FLEW THAT DAY TO GET THE MILES WHAT IS DIFFERENT NOW IS THAT HOTELS ARE ALLOWING GUESTS TO CHOOSE AMONG AIRLINES REGARDLESS OF WHICH ONE THEY FLEW ON THEY EVEN CAN GET THE MILES IF THEY DROVE HILTON HOTELS CORP HAS BEEN AN EXCEPTION IN THE INDUSTRY GUESTS ARE FREE TO CHOOSE MILES ON AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES OR AMERICA WEST AIRLINES HOLIDAY INN SHERATON AND MARRIOTT HAVE WAIVED MEMBERSHIP FEES FOR CUSTOMERS WHO JOIN THEIR MILEAGE PROGRAMS WHICH APPLY TO BOTH DOMESTIC AND INTERNATIONAL PROPERTIES THE HOTELS REQUIRE GUESTS TO PARTICIPATE EITHER IN THEIR MILEAGE OR THEIR FREQUENTSTAY PROGRAMS NOT BOTH HOLIDAY INN WORLDWIDE A UNIT OF BASS PLC IN LONDON WILL OFFER MILEAGE AWARDS WITH UNITED DELTA AIR LINES AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES GUESTS WILL RECEIVE 25 MILES FOR EACH DOLLAR SPENT ON ROOM RATES THE HOTEL WHICH PIONEERED THE INDUSTRY'S FREQUENTSTAY PROGRAM 10 YEARS AGO HAS FOUR MILLION PRIORITY CLUB MEMBERS AND THE COMPANY BELIEVES AT LEAST HALF WILL SWITCH OVER TO MILES EVERYONE RECOGNIZES THAT FREQUENT BUSINESS TRAVELERS WANT AIRLINE MILES SAYS KEN PIERCE THE COMPANY'S VICE PRESIDENT OF FREQUENCY MARKETING AIRLINE TRAVEL IS VERY EXPENSIVE SO THE PAYBACK ON MILES IS HIGH SHERATON A UNIT OF ITT SHERATON CORP WHICH IS A UNIT OF ITT CORP WILL OFFER TWO MILES FOR EVERY DOLLAR SPENT AT ITS HOTELS BUT THE GIVEAWAY APPLIES TO ALL MONEY SPENT ON THE PROPERTY INCLUDING IN RESTAURANTS AND BARS EVEN IF THE CUSTOMER ISN'T SPENDING THE NIGHT THE MILES CAN BE CASHED IN WITH AMERICAN UNITED CONTINENTAL AIRLINES OR THAI AIRLINES SHERATON EXPECTS TO QUADRUPLE IN THE NEXT TWO YEARS ITS CURRENT SHERATON INTERNATIONAL CLUB MEMBERSHIP OF 740000 MARRIOTT'S MILEAGE PROGRAM MIGHT BE BETTER FOR TRAVELERS WHO STAY AT HOTELS A SHORT TIME BECAUSE MARRIOTT GIVES ITS GUESTS 500 FREQUENT FLIER MILES PER STAY REGARDLESS OF DOLLARS SPENT AFTER FIVE STAYS CUSTOMERS RECEIVE A BONUS OF 2500 MILES PARTICIPATING AIRLINES ARE AMERICAN NORTHWEST TRANS WORLD AIRLINES USAIR GROUP INC'S USAIR UNIT CONTINENTAL AND BRITISH AIRWAYS MARRIOTT SAYS THE PROGRAM INTRODUCED IN APRIL HAS SUCCEEDED BEYOND EXPECTATIONS BUT WOULDN'T ELABORATE THERE WAS SPECULATION THAT THE MILEAGE PROGRAM WOULD STEAL CUSTOMERS FROM MARRIOTT'S FREQUENTSTAY PROGRAM PERHAPS LEADING TO ITS DEMISE BUT MARRIOTT SAYS THAT ISN'T HAPPENING THERE'S VIRTUALLY NO MIGRATION OF TOP END PLAYERS IN THE FREQUENTSTAY PROGRAM TO MARRIOTT MILES SAYS RALPH GIANNOLA THE COMPANY'S VICE PRESIDENT OF MARKETING HOTEL EXECUTIVES WON'T COMMENT ABOUT COSTS BUT GIVING AWAY FREQUENTFLIER MILES ISN'T CHEAP IN ADDITION TO ADMINISTRATIVE COMPUTER AND LABOR COSTS THE AIRLINES CHARGE HOTELS ABOUT 15 CENTS A MILE SOME INDUSTRY EXPERTS BELIEVE THAT THE HOTELS LIKE THE AIRLINES ULTIMATELY WILL OFFER MILEAGE PROGRAMS THAT BENEFIT CONSUMERS BUT GIVE THE COMPANIES VERY LITTLE COMPETITIVE EDGE IN EFFECT THEY'RE ALL OFFERING THE SAME PRODUCTMILES IT'S VERY DIFFICULT TO EVALUATE THE PAYBACK ON THESE PROGRAMS BUT ONCE YOU'RE IN THEM IT'S DIFFICULT TO GET OUT SAYS JOHN FOX A DIRECTOR FOR PKF CONSULTING INC IN NEW YORK A HOTEL RESEARCH AND CONSULTING FIRM 9308240015 930824 BUSINESS BRIEF NORD RESOURCES CORP OHIO FIRM IS COMFORTABLE' WITH THIRDPERIOD FORECASTS NORD RESOURCES CORP DAYTON OHIO SAID IT IS COMFORTABLE WITH ANALYSTS' FORECASTS FOR A THIRDQUARTER LOSS OF ABOUT 10 CENTS A SHARE THE PROJECTED LOSS AT THE PRODUCER OF KAOLIN AND NATURAL RUTILE COMES DESPITE A SMALL GAIN THAT THE COMPANY WILL RECORD IN THE PERIOD TO REFLECT PROCEEDS OF 500000 FROM THE SALE OF ITS PERLITE DIVISION NORD COULDN'T QUANTIFY THE GAIN AND DIDN'T NAME THE BUYER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY NORD FELL 25 CENTS OR 51 TO 4625 VAHID FATHI AN ANALYST WITH KEMPER SECURITIES SAID THE SALE WAS NOT A SURPRISE HE ADDED THAT THE PERLITE BUSINESS WAS AN INSIGNIFICANT OPERATION THAT JUST DIDN'T FIT WITH NORD'S OTHER BUSINESSES HE SAID THE STOCK HAS BEEN UNDER PRESSURE FOR A WHILE BECAUSE OF CONCERNS AT NORD'S OTHER OPERATIONS IN THE 1992 THIRD QUARTER NORD HAD A LOSS OF 17 MILLION OR 11 CENTS A SHARE ON SALES OF 289 MILLION 9308240014 930824 WHAT'S NEWS WORLDWIDE BOSNIAN CROATS AGREED TO ALLOW AID TO REACH A BESIEGED MUSLIM ENCLAVE HEAVY FIGHTING WAS REPORTED IN MOSTAR AS UN TRUCKS CARRYING FOOD WAITED FOR PERMISSION TO ENTER THE EASTERN PART OF THE CITY WHERE UN OFFICIALS SAY 55000 TRAPPED MUSLIMS ARE ON THE VERGE OF STARVATION AND HOSPITAL CONDITIONS ARE DESPERATE BOSNIAN CROAT OFFICIALS SAY A CONVOY WILL BE PERMITTED TO ENTER THE ENCLAVE TOMORROW THE UN SAID IT WOULD GIVE CROATS IN MOSTAR HALF OF THE FOOD IF THE TRUCKS ARE GIVEN PASSAGE A SPECIALIST ON EASTERN EUROPE RESIGNED FROM THE STATE DEPARTMENT AND SAID THE US WAS TACITLY ALLOWING GENOCIDE IN THE FORMER YUGOSLAVIA IT WAS THE THIRD SUCH RESIGNATION THIS MONTH A DETROIT JURY CONVICTED TWO WHITE FORMER POLICE OFFICERS OF MURDER IN THE FATAL BEATING OF A BLACK MOTORIST IN NOVEMBER BUT A SEPARATE JURY ACQUITTED A THIRD WHITE FORMER OFFICER OF ASSAULT CHARGES THE TWO FACE POSSIBLE LIFE SENTENCES IN THE CASE WHICH DREW NATIONAL ATTENTION BECAUSE OF PARALLELS WITH THE RODNEY KING CASE THE US IS SENDING 400 ELITE INFANTRY TROOPS TO SOMALIA TO REINFORCE THE 4000 US SOLDIERS ALREADY THERE THE DEPLOYMENT FOLLOWS SEVERAL RECENT INCIDENTS IN WHICH US TROOPS WERE ATTACKED AND COMES ON THE HEELS OF HINTS BY DEFENSE DEPARTMENT OFFICIALS THAT A MAJOR ATTACK ON THE FORCES OF SOMALI WARLORD AIDID WAS BEING CONSIDERED RUSSIA'S VICE PRESIDENT RUTSKOI DENIED AN ANTICORRUPTION PANEL'S ACCUSATION THAT HE FUNNELED STATE MONEY TO A SWISS BANK ACCOUNT RUTSKOI IN A KREMLIN NEWS CONFERENCE SAID HE HAS BROKEN NO LAWS AND KEEPS NO PROPERTY ABROAD THREE RUSSIAN OFFICIALS HAVE RESIGNED OR BEEN OUSTED SINCE THE PRESIDENTIAL PANEL'S REPORT LAST WEEK THE ANC'S MILITARY CHIEF WAS ACCUSED OF ABUSING PRISONERS HELD IN CAMPS OPERATED BY THE GROUP DURING ITS ARMED STRUGGLE AGAINST THE SOUTH AFRICAN GOVERNMENT IN THE 1980S ACCORDING TO AN INDEPENDENT PANEL'S REPORT PREPARED AT THE REQUEST OF ANC LEADER MANDELA ANC OFFICIALS SAID ANY MEMBERS NAMED IN THE REPORT MAY BE EXPELLED PLO LEADER ARAFAT ARRIVED IN JORDAN FOR CONSULTATIONS ON MIDEAST PEACE TALKS SET TO RESUME LATER THIS MONTH BOTH PALESTINIAN AND ISRAELI OFFICIALS SAID A PRELIMINARY ACCORD ON PALESTINIAN AUTONOMY WAS NEAR THE PLO SAID A PLAN FOR ISRAELI WITHDRAWAL FROM THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO WOULD BE PRESENTED AS A FIRST STEP KOHL AND HIS CHIEF RIVAL MET AMID GROWING SPECULATION THAT GERMANY'S TWO BIGGEST POLITICAL PARTIES MAY BE PLANNING A GRAND COALITION IN THE FACE OF GROWING ECONOMIC PROBLEMS AND DECLINING POPULAR SUPPORT KOHL A CHRISTIAN DEMOCRAT HASN'T RULED OUT AN ALLIANCE BUT RUDOLF SCHARPING A SOCIAL DEMOCRAT SAID HE OPPOSED SUCH A MOVE ARMENIAN TROOPS DROVE AZERBAIJANI FORCES FROM A TOWN NEAR THE IRANIAN BORDER IN A MOVE THAT THREATENS TO CUT OFF THE SOUTHWESTERN CORNER OF AZERBAIJAN AND RISKS ANGERING TEHRAN AZERBAIJANI OFFICIALS SAID THE TROOPS WITHDREW FROM FUZULI A TOWN OF ABOUT 40000 FOLLOWING A SIEGE BY ARMENIANS WHO HAD MENACED IT ON THREE SIDES JAPAN'S NEW PRIME MINISTER SAID HIS TOP PRIORITY IS TO PASS POLITICALREFORM LEGISLATION THIS YEAR IN HIS FIRST MAJOR POLICY ADDRESS SINCE TAKING OFFICE EARLIER THIS MONTH AT THE HEAD OF A FRAGILE REFORM COALITION MORIHIRO HOSOKAWA ALSO RULED OUT DEFICIT SPENDING TO HELP THE ECONOMY AND PLEDGED TO OPEN UP THE JAPANESE MARKET THE WHITE HOUSE IS EXPECTED TO ANNOUNCE TODAY IT WILL WITHDRAW A RULE PROPOSED UNDER PRESIDENT BUSH THAT WOULD HAVE ALLOWED 15 MILLION ACRES OF ALASKAN WETLANDS TO BE DEVELOPED THE ADMINISTRATION WILL ALSO PROPOSE SHIFTING CHIEF RESPONSIBILITY FOR REGULATING AGRICULTURAL WETLANDS TO THE AGRICULTURE DEPARTMENT A LAWYER FOR HOLOCAUST SURVIVORS SAID A NEW JERSEY WOMAN WHO SURVIVED SOBIBOR HAS IDENTIFIED JOHN DEMJANJUK AS A GUARD AT THE NAZI DEATH CAMP SUCH TESTIMONY COULD BE CRITICAL TO AN EFFORT TO FORCE A NEW TRIAL OF DEMJANJUK FOLLOWING HIS ACQUITTAL ON CHARGES OF BEING IVAN THE TERRIBLE A NOTORIOUSLY CRUEL GUARD AT TREBLINKA PSYCHOTHERAPISTS MAY ATTEND ASSISTED SUICIDES OF CLIENTS AS LONG AS THEY DON'T PROVIDE THE MEANS OF DEATH A NEW POLICY ADOPTED BY THE NATIONAL ASSOCIATION OF SOCIAL WORKERS SAYS THE GROUP SAYS IT HAS TAKEN NO STANCE ON THE MORALITY OF SUICIDE 9308240013 930824 BUSINESS BRIEF SILICON GRAPHICS INC NINTENDO AGREEMENT IS SET TO CREATE 3D GAME SYSTEM SILICON GRAPHICS INC AND THE US UNIT OF JAPAN'S NINTENDO CO HAVE TEAMED UP TO PRODUCE A POWERFUL NEW VIDEOGAME SYSTEM UNDER THE AGREEMENT WHICH WAS EXPECTED NINTENDO WILL USE SPECIALIZED SILICON GRAPHICS COMPUTER CHIPS DESIGNED TO PERFORM THE CALCULATIONS REQUIRED TO PRODUCE THREEDIMENSIONAL IMAGES THE PRODUCT WHICH WILL BE DEVELOPED SPECIFICALLY FOR NINTENDO WILL BE UNVEILED IN ARCADES NEXT YEAR AND WILL BE AVAILABLE FOR HOME USE BY LATE 1995 THE COMPANIES SAID THE TARGET US PRICE FOR THE HOME SYSTEM IS UNDER 250 UNDER TERMS OF THE AGREEMENT NINTENDO WILL PAY ROYALTIES TO SILICON GRAPHICS MOUNTAIN VIEW CALIF FOR USE OF THE LICENSED THREEDIMENSIONAL TECHNOLOGY SOFTWARE WILL BE SUPPLIED BY NINTENDO AND ITS LICENSEES 9308240012 930824 CLINTON'S TAXES SECRET BONANZA FOR THE IDLE RICH BY ALAN WALTERS WITH A PRACTICED FROWN OF SINCERITY TO BE USED ONLY WHEN TELLING A WHOPPER SEN GEORGE MITCHELL RECENTLY SAID OF THE CLINTON BUDGET THAT ONLY THE RICH WILL PAY HIGHER TAXES EVEN IGNORING THE SMALL CHANGE THAT THE AVERAGE FAMILY IS EXPECTED TO PAY IN HIGHER GASOLINE TAXES THERE ARE MANY OTHER TAX HIKES ON THE NOTRICH SUCH AS SOCIAL SECURITY THAT ARE TUCKED AWAY IN THE INFAMOUS BUDGET BUT WHAT HAS NOT BEEN MENTIONED IN ALL OF THE DISCUSSION OVER THE FEDERAL BUDGET IS THE CRUCIAL QUESTION AFTER ALL THE CHANGES WHO IS BETTER OFF AND WHO IS WORSE OFF IT IS NOT MERELY A QUESTION OF CHANGES IN TAX RATES WE MUST ASK WHAT THESE TAX CHANGES DO TO THE PRICES OF ASSETS OF STOCKS BONDS TAXFREE MUNICIPALS HOUSE PRICES THE VALUES OF ARTIFACTS AND ANTIQUES AND THERE IS A CRUCIAL DISTINCTION UNDERSTANDABLY OBFUSCATED BY THE PRESIDENT AND MANY REPUBLICANS BETWEEN THE RICH LIKE ROSS PEROT AND THOSE WHO WISH TO BECOME RICH THE MOST ADVERSE EFFECTS OF THE CLINTON BILL WILL BE FELT BY THOSE WHO WORK AND SEEK TO BE RICH SOME WILL HAVE MARGINAL RATE INCREASES OF MORE THAN 30 THESE INCREASES ARE LIKELY TO ENCOURAGE THE ACTIVE RICH TO JOIN THE RANKS OF THE IDLE RICH THAT IS TO SAY THOSE WHO LOOK AFTER THEIR OWN PORTFOLIOS RATHER THAN WORK AND PAY THE HIGHER INCOME TAXES AND HIRE PROFESSIONAL PORTFOLIO MANAGERS BUT MUCH MORE IMPORTANT IS THE DISPOSITION OF THE PORTFOLIOS OF THE IDLE RICH THE BEST INVESTMENTS AS ILLUSTRATED IN THE LIST OF ASSETS OF ROSS PEROT ARE IN TAXFREE MUNICIPAL BONDS MUNIS ON WHICH NO INCOME TAX IS PAID FOR THE RICH MUNIS ARE INDEED A REAL BUY SIMILARLY THE RICH WILL BE LONG IN GROWTH STOCKS WHERE THERE IS VIRTUALLY NO DIVIDEND BUT ONLY LONGTERM CAPITAL GAINS WHICH ARE TAXED AT A LOWER RATE THAN OTHER SORTS OF INCOMESTAR CLEARLY ON THE APPROACH OF THE CLINTON TAX HIKES THERE MUST BE AN INCREASE IN THE DEMAND FOR MUNIS AND GROWTH STOCKS THE EXISTING OWNERS OF MUNIS AND GROWTH STOCKS WILL THEREFORE ENJOY A SUBSTANTIAL CAPITAL GAIN THAT IF REALIZED WILL PAY MARGINAL TAX RATES OF ONLY 28 OR 328 TAKING INTO ACCOUNT SOME VERY COMPLEX REDUCTIONS IN DEDUCTIBLES INSTEAD OF THE HIGH RATE OF 396 IF OF COURSE THEY CHOOSE NOT TO SELL THEIR MUNIS ETC THEN THEY PAY NOT ONE PENNY MORE IN TAX THE PURIST WILL NOTE THAT WHAT WE HAVE SHOWN IS SIMPLY THAT THERE WILL BE A RISE IN THE PRICE OF MUNIS AND GROWTH STOCKS RELATIVE TO THE PRICE OF TAXABLE BONDS AND ASSETS AND INDEED IT IS POSSIBLE THAT THE CLINTON PACKAGE WHICH GIVES RISE TO ALL SORTS OF DISINCENTIVES TO WORK AND SAVE INVEST AND HIRE WILL TRIGGER A COLLAPSE OF THE ASSET MARKET MANY SAVVY ANALYSTS THINK THAT IS VERY LIKELY BUT TO GIVE THE PRESIDENT THE BEST OF OUTCOMES SUPPOSE THAT THERE IS NO SUCH ARMAGEDDON AND THE MARKET FOR TAXPAYING ASSETS HOLDS ITS PRICE ONLY THE MUNIS AND GROWTH STOCKS RISE IN SUCH A CASE THE CLINTON BILL MAKES THE RICH EVEN MORE RICH AS THE PRICES OF THEIR TAXFREE ASSETS RISE TO SOME DEGREE THIS HAS ALREADY OCCURRED OF COURSE AS THE MARKET ANTICIPATED THE PASSAGE OF THE CLINTON BILL AND THERE IS UNDOUBTEDLY MORE TO COME ALTHOUGH IT IS DIFFICULT TO MEASURE DIRECTLY WE CAN GET SOME GUIDE BY CALCULATING THE INCREASE IN THE MARGINAL TAX RATE ON ORDINARY INCOME OVER AND ABOVE LAST YEAR'S RATES THIS CALCULATION SUGGESTS THAT TO MAKE THE YIELD OF TAXFREE MUNIS BEAR THE SAME RATIO TO TAXDEDUCTED YIELDS ON BONDS AS IT DID IN 199192 THE PRICE OF MUNIS SHOULD RISE BY PERHAPS AS MUCH AS 30 THAT'S NOT PEANUTS IT SHOULDN'T BE SURPRISING THAT VIRTUALLY ALL TAX ADVISERS HAVE BEEN ROOTING FOR MUNIS AND SIMILAR TAXFREE OR EVEN TAXDEFERRED HAVENS NOT ONLY AS TAX SHELTERS BUT ALSO AS THE SOURCE OF SUBSTANTIAL CAPITAL GAINS FOR BOTH THE IDLE AND NOTSOIDLE RICH THE PRESENTATION OF THE CLINTON BILL AS A TAX ONLY OR AT LEAST ALMOST ONLY ON THE RICH IS NOT WILDLY MISLEADING ONLY IF WE IMAGINE THAT THERE ARE NO CONSEQUENCES TO CHANGES IN TAX RATES SAVE THE COLLECTION OF REVENUE BUT THERE IS MUCH MORE TO THE CLINTON TAX HIKE THAN THAT IT WILL AFFECT A VARIETY OF PRICES AND COSTS AND CAUSE MANY ADJUSTMENTS THROUGHOUT THE ECONOMY THE CASE OF ASSET PRICES IS SO IMPORTANT HOWEVER THAT TO OMIT AN ANALYSIS OF THE EFFECTS OF TAX CHANGES ON ASSETS AND THEIR OWNERS IS LIKE HAMLET WITHOUT THE PRINCE WHY WERE THESE PRICE EFFECTS NOT MENTIONED BY THE BILL'S BACKERS AND EVEN MORE MYSTERIOUSLY BY ITS REPUBLICAN OPPONENTS THERE IS AN AMPLE SUPPLY OF ABLE ECONOMISTS IN THE TREASURY ON WALL STREET AND ELSEWHERE WHO COULD READILY POINT OUT THAT THE CLINTON BILL WAS AN ENORMOUS BENEFIT BILL FOR THE IDLE RICH BUT THE TAX SQUEEZE PRODUCED NO PIP'S SQUEAK IS NOT THIS QUIESCENCE A TRIBUTE TO THE NEED FOR PARTY CONTRIBUTIONS FROM THE RICH OF BOTH PARTIES WHILE THE GOOSE LAYS THE GOLDEN EGGS IT SHOULD BE FED NOT KILLED IN 1986 MILTON FRIEDMAN TOLD ME THAT ALTHOUGH HE WELCOMED THE GREAT TAX REFORM HE WAS QUITE CERTAIN IT WOULD NOT LAST HE ARGUED THAT SINCE MEMBERS OF CONGRESS DEPENDED ON RAISING FUNDS FROM INTERESTED PARTIES SEEKING SPECIAL PRIVILEGES CONGRESS WOULD SIMPLY HAVE TO PASS TAX LAWS THAT OPENED UP THOSE SPECIAL PRIVILEGES WHICH THE 1986 REFORM HAD ABOLISHED WE WOULD SOON BE BACK WITH THE OLD SYSTEM OF HIGH RATES AND A MYRIAD OF LOOPHOLES TOO TRUE TO ADAPT HEMINGWAY THE RICH ARE INDEED VERY DIFFERENT FROM YOU AND ME THEY HAVE MORE MONEY AND CONGRESSMEN SIR ALAN IS VICE CHAIRMAN AND DIRECTOR OF AIG TRADING CORP IN WASHINGTON 9308240011 930824 INTERNATIONAL BRIEF PLAYMATES INTERNATIONAL HOLDINGS TOY MARKETER DISTRIBUTOR'S FIRSTHALF PROFIT FELL 17 PLAYMATES INTERNATIONAL HOLDINGS LTD THE HONG KONG MARKETING AND DISTRIBUTION COMPANY BEHIND TEENAGE MUTANT NINJA TURTLES ACTION TOYS SAID ITS PROFIT DROPPED 17 TO 1466 MILLION HONG KONG DOLLARS US189 MILLION IN THE FIRST SIX MONTHS OF THE YEAR FROM HK1756 MILLION THE YEAR BEFORE SALES SLIPPED 69 TO HK6006 MILLION WEIGHING DOWN RESULTS WAS THE FIRST INCLUSION OF SIXMONTH LOSSES AT ITS 375 OWNED CARRE BLANC/IDEAL LOISIRS GROUP ACQUIRED IN OCTOBER IAN FORSYTH THE COMPANY'S CHIEF FINANCIAL OFFICER SAID RESULTS ALSO WERE HURT BY DIFFICULT ECONOMIC CONDITIONS IN EUROPE HE EXPECTS THE FRENCH ASSOCIATE TO REPORT A SLIGHT PROFIT FOR THE CURRENT FULL YEAR WITH ITS EFFORT OF DIVERSIFICATION MR FORSYTH SAID THE TURTLES LINE NOW ACCOUNTS FOR 60 TO 65 OF TOTAL SALES DOWN FROM THE PREVIOUS YEAR'S 75 TO 80 9308240010 930824 BUSINESS BRIEF BROWNFORMAN CORP FIRSTQUARTER NET FELL 97 AFTER 284 MILLION CHARGE BROWNFORMAN CORP FORECAST MODERATE EARNINGS GROWTH FOR FISCAL 1994 EXCLUDING AN ACCOUNTING CHANGE AND THE EFFECTS OF NEW TAX LEGISLATION THE MAKER OF LIQUORS LUGGAGE CHINA AND OTHER CONSUMER GOODS REPORTED A PROFIT FOR ITS FIRST QUARTER ENDED JULY 31 OF 10 MILLION OR THREE CENTS A SHARE DOWN 97 FROM 352 MILLION OR 127 A SHARE A YEAR EARLIER REVENUE FELL 1 TO 3225 MILLION BROWNFORMAN TOOK A CHARGE IN THE LATEST QUARTER OF 284 MILLION OR 103 A SHARE FOR ACCOUNTING CHANGES THE LOUISVILLE KY COMPANY ALSO SAID SECONDQUARTER RESULTS WILL BE REDUCED BY ABOUT 16 CENTS A SHARE BY THE TAX LEGISLATION FOR THE YEAR ENDED APRIL 30 BROWNFORMAN POSTED PROFIT OF 1562 MILLION OR 565 A SHARE ON SALES OF 141 BILLION IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BROWNFORMAN SHARES CLOSED AT 725 UP 125 CENTS BROWNFORMAN CORP'S CLASS A COMMON SHARES WERE UNCHANGED AT 74 A SHARE MONDAY AN ARTICLE YESTERDAY GAVE THE CLOSING PRICE OF PREFERRED SHARES 9308240009 930824 MR SWEET COUNTS HIMSELF IN THE RANKS OF THE GRATEFUL DEAD FOR TOY SOLDIER BUFFS DEATH IS A MERE SETBACK IN A QUEST FOR GLORY ON THE BATTLEFIELD BY AMY GAMERMAN STAFF REPORTER OF THE WALL STREET JOURNAL LANCASTER PA CHARLIE SWEET A DECORATED WORLD WAR II VETERAN FINALLY RAN OUT OF LUCK IN THE SAHARA CAUGHT IN A SANDSTORM HIS COLUMN OF FRENCH FOREIGN LEGIONNAIRES WAS AMBUSHED BY MARAUDING TUAREG WARRIORS HE WAS CARRIED AWAY DEAD SHRUGS ROBERT LIEBL A COMRADEINARMS SURVEYING THE CARNAGE IN THE DESERT DUNES MR SWEET DOESN'T MIND IT'S A LOT OF FUN SAYS THE 79YEAROLD WARRIOR BUT THEN THE BODIES ON THE SAND WEREN'T RIDDLED WITH LEAD THEY WERE MADE OF IT WAR WAS HELL FOR GENERAL SHERMAN BUT FOR MR SWEET AMONG AN ESTIMATED 20000 US GROWNUPS WHO PLAY WITH TOY SOLDIERS WAR IS HEAVEN RECENTLY ABOUT 1650 SUCH BUFFS MOSTLY MEN AND A HANDFUL OF WOMEN CAME TOTING THEIR MINIATURE CONFEDERATE REBELS LUFTWAFFE BOMBERS AND ISRAELI TANKS TO HISTORICON A DECADEOLD GATHERING OF ARMCHAIR GENERALS THAT IS THE MOTHER OF ALL WARGAME CONVENTIONS IN THE SAHARA STRUGGLE WHERE MR SWEET CAME TO GRIEF INCHHIGH SOLDIERS METICULOUSLY SCULPTED AND PAINTED WERE BATTLING FOR POSTERBOARD FORTS ON 50 POUNDS OF GENUINE DESERT SAND LESS THAN A GRAPE SHOT AWAY OTHER GROWN MEN WERE PITTING ROMANS AGAINST CARTHAGINIANS ON TINY ELEPHANTS STILL OTHERS WERE REENACTING THE 18TH CENTURY RAID BY FRENCH PEASANTS ON A LAVISH MODEL OF THE TUILERIES THE PARISIAN PALACE OF LOUIS XVI FOR SOME THE HOBBY GROWS OUT OF A FASCINATION WITH MILITARY HISTORY OTHERS ENJOY SPENDING HOURS PAINTING HISTORICALLY ACCURATE UNIFORMS ON THEIR TROOPS OR CRAFTING MINIATURE THATCHED HOUSES OUT OF STYROFOAM AND GLUED PASTA AND STRATEGY BUFFS SAY THE HOBBY PROVIDES GREAT BASIC TRAINING FOR THE CORPORATE BATTLEFIELD IT'S TRYING TO OUTTHINK THE OTHER GUY SAYS TODD FISHER A WARGAMER WHO NAMED HIS NAPOLEON SECURITIES TRADING FIRM AFTER HIS ROLE MODEL IT KEEPS YOUR MIND QUICK OTHERS ADMIT THEIR FASCINATION IS PRETTY MUCH KID STUFF DON'T LET ANYBODY TELL YOU DIFFERENTLY SAYS TODD KERSHNER A ROOFING COMPANY SALES MANAGER COMMANDING HUNDREDS OF MINIATURE AMERICAN REVOLUTION TROOPS YOU GET TO RECONNECT WITH YOUR CHILDHOOD TOY SOLDIERS HAVE BEEN AROUND SINCE THE TIME OF THE PHARAOHS WHO WERE ENTOMBED WITH THEIR WOODEN WARRIORS THE FATHER OF MODERN WAR GAMING WAS THE WRITER HG WELLS AN ARDENT PACIFIST WHO DIDN'T LET HIS FEELINGS ABOUT WAR GET IN THE WAY OF HIS LOVE OF TOY SOLDIERS MR WELLS'S 1913 BOOK LITTLE WARS IS THE BIBLE OF MODERN WAR GAMING HIS THEORY WAS THAT WARS FOUGHT WITH TOY MODELS PROVIDED AN OUTLET FOR WOULDBE MILITARY STRATEGISTS WITHOUT THE AWFUL UNIVERSAL BOREDOM AND EMBITTERMENT OF THE REAL THING EVEN TODAY MOST WARGAMERS INSIST THEY AREN'T WARMONGERS AND AMONG THOSE WHO HAVE SEEN MILITARY ACTION MOST STEER CLEAR OF REENACTING THEIR OWN BATTLES MR SWEET A RETIRED BANKER WANTS NOTHING TO DO WITH WORLD WAR II GAMES I HAD TOO MANY BUDDIES KILLED HE SAYS LUCKILY FOR HIM THIS YEAR'S HISTORICON AT THE LANCASTER HOST RESORT HERE OFFERS A WIDE VARIETY OF MAKEBELIEVE MAYHEM AMONG THE 300 MINIBATTLES ARE A REENACTMENT OF THE SIEGE OF THE ALAMO AND A MEDIEVAL SLAUGHTERFEST TITLED A KNIGHT TO DISMEMBER POOL TENNIS COURTS AND GOLF COURSE ARE DESERTED FOR THE RESORT'S STUFFY BASEMENT WHERE GAMERS STOP PLAYING ONLY LONG ENOUGH TO GRAB RATIONS OF PIZZA FROM THE SNACK BAR IF THERE WERE A REAL BATTLE THEY'D BE THE FIRST ONES KILLED SAYS FRANK LUBERTI JR A LAWYER NOTING THE UNMILITARYLIKE PAUNCHES OF MANY OF HIS WARGAMING CONFEDERATES SOME OF THEM WOULDN'T PASS THE PHYSICAL WATCHING WAR GAMES UNFOLD IS A LOT EASIER THAN UNDERSTANDING HOW THEY ARE PLAYED THERE IS NO UNIVERSAL SET OF RULES INSTEAD WARGAMERS OFTEN TAKE REAL BATTLES AND TURN THEM INTO COMPLEX CHESS MATCHES IN WHICH HISTORY DETERMINES THE INITIAL STRENGTH AND POSITIONS OF ARMIES BUT NOT THE OUTCOME THUS IN THE BATTLE OF WATERLOO A POPULAR REENACTMENT ON THE TOYSOLDIER FRONT MINIATURE NAPOLEONS OFTEN WIN THE VICTORY THAT ELUDED THE LITTLE DESPOT HIMSELF RULES FACTOR IN EVERYTHING FROM THE EFFECTS OF POOR MORALE AND BAD WEATHER TO THE FIRE POWER MEASURED IN MILLIMETERS OF SUCH ARCANE WEAPONS AS THE PRUSSIAN DREYSE NEEDLEGUN AND THE FRENCH CHASSEPOT RIFLE TROOPS MARCH OVER TERRAIN METICULOUSLY RECREATED WITH THE AID OF CONTOUR MAPS AND PHOTOGRAPHS PLAYERS MOVE IN TURN ROLLING DICE TO DETERMINE WHETHER THEIR ARMY'S FUSILLADE HAS SCORED A HIT TOY SOLDIERS DEEMED TO HAVE BEEN KILLED IN ACTION ARE KNOCKED OVER BY GENTLE HANDS ACTUAL PROJECTILES AREN'T USED HAVING SPENT HOURS PAINTING HISTORICALLY ACCURATE POLKA DOTS ON HIS HIGHLANDERS' GAITERS A GAMER DOESN'T WANT THEM CHIPPED BY A MINICANNON BALL SUCH REALISM IS ACHIEVED IN A VARIETY OF WAYS OVER AT KEITH HUBBARD'S 218 BC DUSTUP MEET ME AT LOCRI BATTLING ROMAN AND CARTHAGINIAN SOLDIERS ARE MADE FROM CUTUP RUBBER WELCOME MATS THEY BEAR THUMBTACK SHIELDS AND SPEARS THAT BEGAN LIFE AS HAIR BRUSH BRISTLES PINK PLASTIC PIGS FROM A TOY FARM SET HAVE BEEN PAINTED GRAY WITH CARVED PLASTIC LEAVES GLUED TO THEIR SNOUTS THEY HAVE BECOME CARTHAGINIAN ELEPHANTS MR HUBBARD A 73YEAROLD RETIREE MADE THE SET IN 1975 IN THOSE DAYS THERE WEREN'T HOUSES AND THINGS YOU COULD BUY HE SAYS MEANWHILE TODD FISHER IN A NAPOLEONESQUE FEATHERED BICORN AND GOLDEMBROIDERED TUNIC IS PRESIDING OVER THE BEST BATTLEFIELD MONEY CAN BUY MR FISHER'S 20FOOT BY 24FOOT RECREATION OF THE TUILERIES IS BEING STORMED BY 4500 MINIATURE RIOTING PARISIANS SOME 1500 SWISS GUARDS STAND IN DEFENSE ALL OF THE REALLIFE PARTICIPANTS HAVE BEEN DUPLICATED IN MINIATURE LOUIS XVI AND MARIE ANTOINETTE COWER IN FRENCH FORMAL GARDENS MADE OF ASTROTURF YOU CAN BUY HOUSES IN A LOT OF THE COUNTRY FOR WHAT THIS COST SAYS THE 38YEAROLD MR FISHER IT WAS OVER 30000 FOR THE PAINTING OF THE FIGURES ALONE THAT DOESN'T FAZE BRIAN HIGBEE A LEGISLATIVE ANALYST THE WARGAMING GENERAL MANEUVERING THE DEFENDING SWISS GUARDS ON MR FISHER'S BATTLEFIELD IS OUT FOR BLOOD THE KING SAID YOU CAN'T SHOOT AT MY SUBJECTS' SO I SAID OK LET'S CHARGE THEM WITH BAYONETS' HE CRIES BUT MR HIGBEE'S GUARDS FARE NO BETTER THAN THE SWISS GUARDS OF HISTORY AND THE PEASANT MOB MAKES SHORT WORK OF THEM LITTLE LEAD BODIES PILE UP EVERYWHERE WAR GAMES WHICH CAN TAKE HOURS OR EVEN DAYS TO PLAY EXACT A REALLIFE HUMAN TOLL MOST SPOUSES LET THEIR WARRIORS GO OFF TO THESE CONVENTIONS ALONE AND THE FEW WHO HAVE BRAVED THE FRONTS AT HISTORICON STILL CONSIDER THEMSELVES WAR WIDOWS EILEEN MURPHY JUST BACK FROM A FITNESS WALK HAS CHECKED ON THE FORTUNES OF HER HUSBAND LEO WHO IS WAGING THE BATTLE OF ZURICH FROM HER PERSPECTIVE THE NEWS IS GOOD HIS MEN ARE JUST ABOUT ALL DEMOLISHED SHE SAYS AS SOON AS HE GETS KILLED HE'S GOING TO MEET ME AT THE POOL FOR LUNCH 9308240008 930824 BUSINESS BRIEF ALBERTSON'S INC SAMESTORE SALES PUSHED NET UP 15 IN FISCAL 2ND QUARTER ALBERTSON'S INC POWERED BY CONTINUED STRENGTH IN SAMESTORE SALES AND TIGHT COST CONTROLS SAID EARNINGS ROSE 15 TO 759 MILLION IN THE FISCAL SECOND QUARTER THE BOISE IDAHO FOOD AND DRUG RETAILER SAID THE PROFIT OF 60 CENTS A SHARE IN THE PERIOD ENDED JULY 29 COMPARED WITH NET INCOME OF 66 MILLION OR 50 CENTS A SHARE A YEAR EARLIER SALES FOR THE PERIOD ROSE 63 TO 28 BILLION FROM 26 BILLION A YEAR AGO SAMESTORE SALES INCREASED 28 IN THE PERIOD FOR THE FISCAL FIRST HALF ALBERTSON'S SAID ITS NET ROSE 63 TO 150 MILLION OR 118 A SHARE ON SALES OF 55 BILLION FROM YEAREARLIER PROFIT OF 92 MILLION OR 70 CENTS A SHARE ON SALES OF 49 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ALBERTSON'S STOCK CLOSED AT 56 DOWN 875 CENTS 9308240007 930824 BUSINESS BRIEF JC PENNEY CO PACT PLANNED WITH AOYAMA TO SELL SOME GOODS IN JAPAN JC PENNEY CO SAID IT REACHED A PRELIMINARY UNDERSTANDING WITH AOYAMA TRADING CO TO SELL SOME OF ITS PRIVATELABEL GOODS IN AOYAMA'S JAPANESE STORES BEGINNING NEXT SPRING THE ARRANGEMENT WOULD MARK PENNEY'S ENTRY INTO THE JAPANESE MARKET A COMPANY SPOKESMAN SAID THAT TERMS OF THE LICENSING AGREEMENT WEREN'T AVAILABLE BECAUSE THE COMPANIES HAVEN'T SIGNED A FORMAL AGREEMENT HE SAID THE FORMAL AGREEMENT IS EXPECTED TO BE SIGNED IN THE NEAR FUTURE THE RETAILER IN PLANO TEXAS SAID AOYAMA WOULD SELL MEN'S CASUAL WEAR UNDER THE BRAND NAMES HUNT CLUB ST JOHN'S BAY AND THE ORIGINAL ARIZONA JEAN COMPANY PENNEY ALSO SAID IT WOULD PROVIDE STORE LAYOUT AND SOME SUPPORT FOR THE BRANDS TO BE SOLD IN AOYAMA'S STORES AOYAMA IN HIROSHIMA IS JAPAN'S LARGEST MENSWEAR RETAILER WITH 466 STORES PENNEY SAID THIS IS PENNEY'S MOST AMBITIOUS EFFORT TO SELL ITS PRIVATELABEL GOODS OVERSEAS TO DATE 9308240006 930824 WHAT'S NEWS BUSINESS AND FINANCE IPALCO ENTERPRISES CONCEDED IT FELL SHORT IN A CRITICAL PROXY FIGHT FOR CONTROL OF PSI RESOURCES AND SAID IT WILL DROP ITS 173 BILLION HOSTILE TENDER OFFER FOR THE UTILITY IPALCO'S DECISION CLEARS THE WAY FOR PSI TO PROCEED WITH ITS MERGER WITH CINCINNATI GAS & ELECTRIC IPALCO'S CHAIRMAN SAID THAT BECAUSE TWO BIG INSTITUTIONAL HOLDERS VOTED AGAINST HIS UTILITY IPALCO DIDN'T HAVE ENOUGH PROXIES TO ELECT ITS SLATE OF FIVE CANDIDATES TO PSI'S BOARD IBM IS PLANNING AN EFFORT TO CLONE INTEL MICROPROCESSORS IN AN UNUSUALLY AGGRESSIVE BID TO WIN BACK DOMINANCE OF THE PERSONALCOMPUTER BUSINESS BUT IBM MUST COME UP WITH A NEW DESIGN FOR CHIPS THAT PERFORM THE SAME FUNCTION AS INTEL CHIPS TO AVOID VIOLATING INTEL'S COPYRIGHTS AND PATENTS CONTINENTAL CABLEVISION PLANS TO CONNECT ITS CABLE TV SYSTEM WITH INTERNET A WORLDWIDE PERSONAL COMPUTER INFORMATION SERVICE ALLOWING ITS CUSTOMERS TO ACCESS THE NETWORK FORD OF EUROPE WARNED WORKERS MORE JOB CUTS MAY BE NEEDED AND SAID FAILURE TO ACHIEVE A TURNAROUND SOON COULD UNDERMINE ITS COMPETITIVENESS THE FORD UNIT SAID IT EXPECTS A LOSS IN 1993 FOR THE THIRD CONSECUTIVE YEAR WALMART SELLS SOME PRODUCTS AT BELOW COST BUT IT ISN'T BREAKING THE LAW BECAUSE IT ISN'T TRYING TO DESTROY COMPETITION ITS CHIEF EXECUTIVE SAID IN A PREDATORY PRICING TRIAL OF A SUIT BROUGHT BY ARKANSAS PHARMACIES A TELEDYNE UNIT AGREED TO PLEAD GUILTY TO CRIMINAL CHARGES OF LYING TO THE GOVERNMENT INVOLVING SALES TO TAIWAN IN THE 1980S THE NAVIGATION SYSTEMS UNIT WILL PAY A 15 MILLION FINE JAPANESE CAR MAKERS IN THE US HAVE RAISED THE AMOUNT OF USMADE PARTS THEY USE BECAUSE THE YEN'S RISING VALUE MAKES IMPORTS MORE EXPENSIVE A TAX CREDIT TO BOOST THE HIRING OF LOWINCOME PEOPLE WASTES FEDERAL FUNDS BY PROVIDING BREAKS TO BIG FASTFOOD AND RETAIL EMPLOYERS THAT WOULD HAVE HIRED SUCH WORKERS ANYWAY A LABOR DEPARTMENT OFFICIAL SAID HOLIDAY INN AND SHERATON PLAN TO OFFER THEIR BEST GUESTS FREQUENTFLIER MILES AS AN ALTERNATIVE TO FREE ROOMS OR UPGRADES JOINING OTHER HOTELS THAT ARE ADDING FREE MILES PROGRAMS MARRIOTT APPEARS TO BE CLOSE TO COMPLETING ITS 10MONTH EFFORT TO SPLIT INTO A CASHRICH HOTEL MANAGEMENT CONCERN AND A MORE SPECULATIVE REALESTATE COMPANY THAT WOULD BE RESPONSIBLE FOR MOST OF MARRIOTT'S DEBT INCOMETAX RECORDS WOULD BE HARDER TO OBTAIN BY FEDERAL AGENCIES CONDUCTING NONCRIMINAL PROBES UNDER A FEDERAL APPEALS COURT RULING UNITED TECHNOLOGIES WAS FINED 53 MILLION FOR ABUSES IN HANDLING AND DISCHARGING HAZARDOUS WASTE BONDS LEHMAN BROTHERS TREASURY INDEX 548887 UP 1697 COMMODITIES OIL 1853 A BARREL UP 24 CENTS DOW JONES FUTURES INDEX 12526 UP 051 SPOT INDEX 12324 UP 038 DOLLAR 10305 YEN OFF 130 16835 MARKS UP 00080 9308240005 930824 MOST OF THIS CROWD WASN'T ANYWHERE WHEN JFK WAS SHOT POSTASSASSINATION GENERATION DRAWN TO CASE DOCUMENTS THAT ARE NOW UNCLASSIFIED BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUSAN WODISKA WASN'T ANYWHERE WHEN JOHN F KENNEDY WAS SHOT BUT THE 17YEAROLD MARYLAND HIGH SCHOOL STUDENT HAD TO BE ONE OF THE FIRST PEOPLE TO GET A PEEK YESTERDAY AT NEWLY UNCLASSIFIED DOCUMENTS RELATING TO THE KENNEDY ASSASSINATION AND A FEW TABLES AWAY 19YEAROLD JOSEPH SMITH A FAN OF THE MOVIE JFK WAS LOOKING FOR CLUES TO TEST HIS TRIPLEGUNMAN THEORY NOTHING SURPRISES ME HE SAID INDEED BRACES AND FRECKLES WERE ALMOST AS PREVALENT AS GRAY HAIR IN THE NATIONAL ARCHIVES LIBRARY WHERE THE KENNEDY PAPERS WERE RELEASED AND THE BORNINTHE'70S CROWD PROVED THEMSELVES TO BE EVERY BIT AS CYNICAL AS THEIR PARENTS ABOUT WHO SHOT THE 35TH PRESIDENT I'M CONVINCED OSWALD DIDN'T ACT ALONE SAID MS MODISKA AS SHE AND A FRIEND ANNIE LIPPERT 18 PORED THROUGH LEE HARVEY OSWALD'S PASSPORT FILE AS MS LIPPERT COOED OVER A PHOTOGRAPH OF OSWALD'S BABY MS WODISKA EXPLAINED THAT SHE BECAME INTERESTED IN THE KENNEDY ASSASSINATION AFTER LISTENING REPEATEDLY TO THE RECORDING OF A STEPHEN SONDHEIM MUSICAL ASSASSINS SHE KEEPS AN ALPHABETICAL FILE OF THE MUSICAL'S CHARACTERS INCLUDING MR OSWALD JOHN WILKES BOOTH AND LYNETTE SQUEAKY FROMME WHO TRIED TO KILL PRESIDENT GERALD FORD SOME YOUNG VISITORS MANAGED TO WORK THE KENNEDY ASSASSINATION INTO THEIR TOURIST ITINERARIES IN BETWEEN THE SMITHSONIAN AND THE WASHINGTON MONUMENT DANIELLE SMITH 23 FROM LIVERMORE CALIF WAS WALKING PAST THE ARCHIVES WITH HER HUSBAND JOE WHEN THEY SPOTTED A NEWSPAPER HEADLINE ABOUT THE KENNEDY DOCUMENTS BECOMING PUBLIC AN HOUR LATER SHE WAS DISCOVERING NEW TIDBITS ABOUT JACK RUBY AND FEELING GUILTY BECAUSE HER 19YEAROLD BROTHER ANOTHER JFK BUFF HAD NO IDENTIFICATION AND WAS STUCK OUTSIDE IF I DID NOT COME HERE TO TOUCH THE DOCUMENTS AND SEE THEM I WOULD REGRET IT ALL MY LIFE SAID ANOTHER TOURIST ANDRE RAKOTO 21 FROM FRANCE STEVE TILLEY THE NATIONAL ARCHIVES' KENNEDYASSASSINATION SPECIALIST SAID HE WAS SURPRISED BY THE NUMBER OF CASUAL RESEARCHERS WHO SHOWED UP THE KENNEDY FILE FILLS SOME 900 BOXES AND THE HOTTEST ITEM YESTERDAY THE CENTRAL INTELLIGENCE AGENCY'S PERSONALITY FILE ON MR OSWALD STOOD 25 FEET HIGH IT'S GOING TO TAKE A SERIOUS RESEARCHER MANY WEEKS TO SIFT THROUGH ALL THE MATERIALS MR TILLEY SAID BUT THAT DIDN'T INTIMIDATE 17YEAROLD STUART WEXLER A NEW JERSEY HIGH SCHOOL STUDENT MR WEXLER WHO THINKS THE CIA HAD THE PRESIDENT KILLED TO FRAME FIDEL CASTRO WAS LOOKING OVER RUSSIAN MEDICAL RECORDS AND LEARNED THAT MR OSWALD HAD AN ADENOTOMY WHATEVER THAT IS HE PLANNED TO SPEND ANOTHER FOUR DAYS AT THE ARCHIVES GATHERING AMMUNITION FOR HIS ARGUMENTS WITH HIS FATHER WHO THINKS FIDEL CASTRO HAD SOMETHING TO DO WITH THE ASSASSINATION THE YOUNGER MR WEXLER WHO DITCHED A FIELD TRIP TWO YEARS AGO TO WADE THROUGH 200 PAGES OF KENNEDY MATERIALS AT THE NATIONAL ARCHIVES SAYS OTHER RESEARCHERS CAN MISS THINGS IT'S VERY TRICKY HE SAID SOME OF THE MOST IMPORTANT STUFF IS THE STUFF THEY BLACK OUT 9308240004 930824 FOREIGN EXCHANGE DOLLAR ENDS HIGHER AGAINST CURRENCIES IN EUROPE DECLINES IN RELATION TO YEN BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK FRANCE AND DENMARK TOOK ADVANTAGE OF THIN TRADING MONDAY TO QUIETLY LOWER INTEREST RATES FUELING TALK ABOUT A POSSIBLE GERMAN RATE CUT THIS WEEK AND LEAVING THE DOLLAR HIGHER AGAINST ITS EUROPEAN COUNTERPARTS AGAINST THE YEN HOWEVER THE US CURRENCY DRIFTED LOWER AS TRADERS WATCHED NERVOUSLY FOR FEDERAL RESERVE INTERVENTION THAT NEVER MATERIALIZED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16835 MARKS UP FROM 16755 MARKS LATE FRIDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10305 YEN DOWN FROM 10435 YEN STERLING WAS TRADING AT 15050 DOWN FROM 15150 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10342 YEN AND AT 16869 MARKS TRADING WAS EXTREMELY THIN MONDAY AS CURRENCY MARKETS ENTERED WHAT TRADERS SAID WOULD PROBABLY BE THEIR SLOWEST TWO WEEKS OF THE YEAR WITH LITTLE NEWS TO TRADE ON PLAYERS STILL ACTIVE PUT THEIR FAITH IN TECHNICAL LEVELS SENDING THE DOLLAR ON A RALLY WHEN IT TRIPPED THROUGH 16820 MARKS AND THEN INTO A DECLINE WHEN IT FAILED TO MAINTAIN 16900 MARKS OUT OF FEAR THAT THE FED MIGHT INTERVENE AT 103 YEN PLAYERS HELD THE DOLLAR ABOVE THAT LEVEL MONDAY AT THE SAME TIME THE MARKET WAS WATCHING THE LEVEL OF 10280 YEN ANY DIP BELOW THAT TRADERS SAID WOULD UNDO THE FED'S DOLLARBUYING LAST THURSDAY AND SEND THE US CURRENCY CRASHING BACK TOWARD 100 YEN THE THIN CONDITIONS WERE PUT TO USE BY THE CENTRAL BANKS OF FRANCE AND DENMARK WHICH CUT SOME OF THE INTEREST RATES THEY HAD RAISED TO DEFEND THEIR CURRENCIES DURING LAST MONTH'S CRISIS IN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM DENMARK'S NATIONALBANK CUT ITS TWOWEEK LENDING RATE TO 1050 THE FIRST TIME IT HAD EASED SINCE SPECULATIVE ATTACKS ON THE DANISH KRONE IN JULY FORCED IT TO SPEND BILLIONS OF KRONER DEFENDING THE CURRENCY THE FRENCH MEANWHILE CUT THEIR SPECIAL OVERNIGHT RATE TO 775 FROM 825 MONDAY THEN ELIMINATED THE RATE ENTIRELY THE OVERNIGHT RATE WAS AN EMERGENCY ONE ESTABLISHED DURING THE CURRENCY CRISIS WHEN LOANS AT THE USUAL 5TO10DAY WINDOW FACILITY WERE SUSPENDED TO DISCOURAGE SPECULATION AGAINST THE FRANC THE 5TO10DAY WINDOW FACILITY HAS SINCE BEEN REOPENED AT A 10 RATE COMPARED WITH 775 BEFORE THE CRISIS MONDAY'S MOVES RAISED EXPECTATIONS THAT A CUT IN THAT RATE WAS IMMINENT AS THE FRENCH MONEY MARKET SETTLES DOWN WITH THE FRANC AND KRONE NOW RELATIVELY STABLE AND FEW INVESTORS IN THE MARKET TO BID THEM DOWN AGAIN BOTH COUNTRIES WERE ABLE TO CUT RATES MONDAY WITH RELATIVELY MINOR DAMAGE TO THEIR CURRENCY VALUES THE MARK CLOSED AT 34683 FRANCS ACTUALLY DOWN A BIT FROM 34852 FRANCS LATE FRIDAY IT CLOSED AT 41134 KRONER UP FROM 40764 KRONER FRIDAY RATE CUTS USUALLY DIMINISH THE VALUE OF A CURRENCY BY LOWERING THE RATE OF RETURN ON DEPOSITS DEVALUATED IN THAT CURRENCY BUT ALBERT SORIA A FIRST VICE PRESIDENT AT KANSALLIS OSAKE PANKKI A FINNISH BANK IN NEW YORK SAID THE MARKET WAS GENERALLY PLEASED WITH MONDAY'S EASINGS WHEN WE LOOK AT FRANCE AND DENMARK WE'RE NOT LOOKING AT YIELD BUT AT THE POTENTIAL FOR ECONOMIC GROWTH SAID MR SORIA THOSE COUNTRIES THAT ARE STARTING TO CUT RATES WILL BENEFIT FROM ECONOMIC GROWTH SIGNIFICANTLY THE FRENCH AND DANISH RATE CUTS RAISED SPECULATION THAT THE BUNDESBANK GERMANY'S CENTRAL BANK MAY CUT RATES ON THURSDAY WHEN ITS OFFICIALS MEET FOR THE FIRST TIME FOLLOWING A MONTHLONG SUMMER RECESS 9308240003 930824 TECHNOLOGY COUNTY PROSECUTOR'S OFFICE DISQUALIFIED FROM BORLAND CASE AGAINST SYMANTEC BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL A CALIFORNIA JUDGE DISQUALIFIED THE SANTA CRUZ COUNTY DISTRICT ATTORNEY'S OFFICE FROM A TRADE SECRETS CASE AGAINST OFFICERS OF SYMANTEC CORP AFTER DISCOVERING RIVAL BORLAND INTERNATIONAL INC REIMBURSED PROSECUTORS FOR CERTAIN COSTS IN A NEW TWIST ON WHAT IS ALREADY ONE OF THE STRANGEST LEGAL CASES OF SILICON VALLEY LAWYERS FOR THE SYMANTEC OFFICERS ACCUSED OF STEALING SECRETS FROM BORLAND DISCLOSED THAT BORLAND UNDERWROTE SOME 15000 IN PROSECUTION COSTS THEY ALSO DISCLOSED THAT BORLAND HAD RETAINED A LAWYER TO COACH ITS WITNESSES IN THE CASE WHO HAD PREVIOUSLY WORKED ON THE INVESTIGATION AS A PARTTIME EMPLOYEE OF THE DISTRICT ATTORNEY'S OFFICE IN GRANTING THE DEFENSE'S MOTION TO DISQUALIFY COUNTY PROSECUTORS FROM THE CASE YESTERDAY STATE SUPERIOR COURT JUDGE WILLIAM KELSAY APPEARED TO EXPRESS MORE CONCERN ABOUT THE REIMBURSEMENT OF COSTS THAN THE CONTRACT HIRING OF A FORMER INVESTIGATOR ACCORDING TO LAWYERS PRESENT IN THE HEARING THE JUDGE SUGGESTED SUCH PAYMENT COULD COMPROMISE PROSECUTORS' IMPARTIALITY THAT PAYING FOR PROSECUTORIAL COSTS IS WRONG SAID THOMAS J NOLAN LAWYER FOR EUGENE WANG ONE OF THE CHARGED SYMANTEC OFFICERS NO MATTER HOW WELL MEANING THESE BORLAND ARE PEOPLE WHO HAVE PAID MONEY KATHRYN CANLIS AN ASSISTANT SANTA CRUZ COUNTY DISTRICT ATTORNEY SAID HER OFFICE PERMITS PLAINTIFFS TO UNDERWRITE EXPENSES IN COSTLY WHITECOLLAR CRIME CASES THAT THE COUNTY CANNOT AFFORD MS CANLIS ARGUED HER OFFICE WAS NOT COMPROMISED BY THE BORLAND MONEY SAYING IT WAS USED TO DEFER TECHNICAL COSTS SUCH AS TRANSCRIPTION OF INTERVIEW TAPES THAT HELD NO BEARING ON PROSECUTORS' DECISIONS I DON'T BELIEVE IT IS WRONG SAID MS CANLIS WHO ARGUED THE COUNTY'S CASE BEFORE THE JUDGE ALTHOUGH WE LET THESE PEOPLE PAY CERTAIN COSTS WE STILL MAKE AN INDEPENDENT PROSECUTORIAL DECISION DISTRICT ATTORNEY ARTHUR DANNER III WHO WAS UNAVAILABLE FOR COMMENT TESTIFIED HE HAD APPROVED SOME OF THE PAYMENTS AND ACCEPTED RESPONSIBILITY FOR THE REST BORLAND OFFICIALS DECLINED COMMENT REFERRING INQUIRIES TO THE SANTA CRUZ DISTRICT ATTORNEY'S OFFICE IT IS LEFT UP TO THE CALIFORNIA ATTORNEY GENERAL'S OFFICE MEANWHILE WHETHER TO CONTINUE PROSECUTION OF THE CASE ATTORNEY GENERAL'S OFFICIALS WHO INDICATED THEY HAVE NOT YET DECIDED WHAT COURSE TO TAKE HAVE THE OPTIONS OF APPEALING THE JUDGE'S DECISION IN ORDER TO GET LOCAL PROSECUTORS BACK ON THE CASE TRYING IT THEMSELVES OR DROPPING CHARGES ALTOGETHER MR WANG A FORMER BORLAND VICE PRESIDENT IS CRIMINALLY ACCUSED OF TRANSFERRING COMPANY SECRETS OVER ELECTRONIC MAIL TO GORDON EUBANKS CHIEF EXECUTIVE OFFICER OF SYMANTEC BEFORE MR WANG LEFT THE COMPANY FOR HIS NEW JOB AS SYMANTEC'S EXECUTIVE VICE PRESIDENT BOTH MR WANG AND MR EUBANKS WERE INDICTED BY A GRAND JURY EARLIER THIS YEAR AND ARE FREE ON THEIR PERSONAL RECOGNIZANCE THE CHARGES AROSE IN SEPTEMBER AFTER BORLAND SAID IT DISCOVERED THAT MR WANG HAD TRANSMITTED ABOUT A DOZEN COMPUTER MESSAGES INCLUDING SECRET MARKETING PLANS AND CONFIDENTIAL BUSINESS PROPOSALS TO MR EUBANKS OVER PHONE LINES THROUGH ELECTRONIC MAIL FROM BORLAND'S SCOTTS VALLEY CALIF HEADQUARTERS THE LOCAL POLICE AND DISTRICT ATTORNEY INVESTIGATORS HELD SEAROF MESSRS WANG'S AND EUBANKS'S HOMES AND SYMANTEC'S CUPERTINO CALIF OFFICES TO SEEK EVIDENCE BORLAND'S WIDELY REPORTED ACCUSATIONS AGAINST MESSRS WANG AND EUBANKS CAUSED CONSTERNATION AMONG SOME EXECUTIVES IN SILICON VALLEY AND THE SOFTWARE INDUSTRY WHO ACCUSED BORLAND OF TRUMPING UP THE CHARGES TO UNFAIRLY ATTACK ITS DEPARTING EXECUTIVE COMPUTER COMPANY EMPLOYEES FREQUENTLY CHANGE JOBS AND COMPANIES OFTEN FILE LAWSUITS AGAINST THEM TO KEEP THEM FROM USING SECRETS BUT CRIMINAL CHARGES ARE RARE DURING THE HEARINGS TO DISQUALIFY LOCAL PROSECUTORS THE DEFENSE LAWYERS HAD ALSO BROUGHT OUT THAT JONATHAN RIVERS A FORMER LEGAL ASSISTANT FOR THE DISTRICT ATTORNEY'S OFFICE WENT TO WORK FOR BORLAND AS A CONTRACT LAWYER AFTER ASSISTING IN THE PROSECUTION'S BACKGROUND RESEARCH WORK HE WAS PREPARING BORLAND WITNESSES FOR TESTIFYING AGAINST SYMANTEC MR NOLAN LAWYER FOR MR WANG SAID MICHAEL BARTRAM AN ASSISTANT DISTRICT ATTORNEY WHO HEADED THE INVESTIGATION ACKNOWLEDGED THAT MR RIVERS WORKED FOR HIM AS A LEGAL ASSISTANT BUT THAT HE DID NOT MAKE MAJOR DECISIONS AND MOSTLY JUST DID LEGAL RESEARCH AND INTERVIEWED WITNESSES WHEN HE LEFT THE OFFICE TO DO WORK FOR BORLAND MR BARTRAM SAID HE AND MR RIVERS AGREED IN WRITING NOT TO DISCUSS THE CASE AGAIN 9308240002 930824 MEDICINE MCDONALD'S METHODS COME TO MEDICINE AS CHAINS ACQUIRE PHYSICIANS' PRACTICES BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE MERGERANDACQUISITION SQUADS MAY BE COMING SOON TO A DOCTOR'S OFFICE NEAR YOU ONE OF THE MOST POPULAR TRENDS IN HEALTH CARE THESE DAYS IS THE LARGESCALE PURCHASING OF PHYSICIANS' PRIVATE PRACTICES SOME AMBITIOUS ACQUIRERS ARE EVEN TALKING OF SETTING UP MD CHAINS THAT WOULD BE THE MEDICAL EQUIVALENT OF FRANCHISED RESTAURANTS OR STORES WE AREN'T QUITE SEEING OPEN WARFARE YET IN BIDDING FOR DOCTORS' PRACTICES BUT IT'S GETTING CLOSE SAYS ART BOLL A CINCINNATIBASED HEALTHCARE CONSULTANT FOR DELOITTE & TOUCHE IT'S ONLY A COUPLE OF YEARS BEFORE MOST OF THE PRIMARYCARE DOCTORS IN THE COUNTRY ARE GOING TO BE ALIGNED WITH SOMEONE EITHER THROUGH ACQUISITION MERGER OR LONGTERM EMPLOYMENT AGREEMENT ALREADY TWO COMPANIES THAT DO NOTHING BUT BUY DOCTORS' PRACTICES HAVE GROWN BIG ENOUGH TO GO PUBLIC THOSE TWO PHYCOR INC AND PACIFIC PHYSICIAN SERVICES INC EACH HAVE ANNUAL REVENUE OF MORE THAN 100 MILLION THEY ARE EXPANDING MORE THAN 30 A YEAR MOSTLY BECAUSE OF A STEADY RUN OF ACQUISITIONS IN ADDITION SOME HEALTHCARE VETERANS ARE MOVING INTO THE FIELD A STARTUP COMPANY AMERICAN HEALTH CARE GROUPS HAS WON 25 MILLION IN BACKING FROM WARBURG PINCUS & CO A VENTURE CAPITAL FIRM THAT PROVIDED SEED MONEY FOR SOME LEADING HEALTHMAINTENANCE ORGANIZATIONS IN THE 1970S AND EARLY 1980S AMERICAN HEALTH PLANS TO BUILD UP GROUP PRACTICES FROM SCRATCH AS WELL AS BUY EXISTING ONES IF YOU LOOK AT FEDERAL OR STATE HEALTHCARE REFORMS ALMOST EVERYTHING IS PUSHING IN THIS DIRECTION SAYS KEN SIMMONS CHAIRMAN OF AMERICAN HEALTH MR SIMMONS IS A FORMER CHAIRMAN OF A MAJOR MINNEAPOLIS HMO UNITED HEALTHCARE INC HE HAD TRIED IN 1991 TO RETIRE TO A LIFE OF FARMING AND TEACHING IN VIRGINIA BUT SAYS THAT THE CHANCE TO GET INVOLVED WITH AMERICAN HEALTH WAS TOO ALLURING TO PASS UP SO FAR ACQUIRERS HAVE CONCENTRATED ON LARGER CLINICS WITH 10 OR MORE DOCTORS THAT SEGMENT ACCOUNTS FOR LESS THAN ONEFIFTH OF THE OVERALL 150 BILLION IN PHYSICIANS' ANNUAL REVENUE BUT ANALYSTS PREDICT THAT OVER THE NEXT FEW YEARS MORE DOCTORS IN SOLO PRACTICES WILL COMBINE TO FORM SMALL GROUPS WITH THESE GROUPS THEN BECOMING THE OBJECTS OF ACQUIRERS IN A FEW SITUATIONS ACQUIRERS SUCH AS PACIFIC PHYSICIAN SERVICES AND ITS AFFILIATES ARE BUYING DOCTORS' ENTIRE PRACTICES AND PUTTING PHYSICIANS ON THE PAYROLL ANOTHER STRATEGY FAVORED BY AMERICAN HEALTH CARE GROUPS IS TO BUILD UP GROUP PRACTICES FROM SCRATCH RECRUITING DOCTORS ONE AT A TIME MOST COMMONLY THOUGH ACQUIRERS BUY ONLY THE OFFICES EQUIPMENT AND OTHER NONMEDICAL ASSETS OF A THRIVING PRACTICE THAT ENSURES THAT THE BUYERS COMPLY WITH ANY STATE LAWS PREVENTING NONDOCTORS FROM OWNING A MEDICAL PRACTICE THE PURCHASERS THEN TAKE COMMAND OF BUSINESS ACTIVITIES AND COLLECT A MANAGEMENT FEE THAT TYPICALLY AMOUNTS TO ABOUT 7 OF REVENUE WHATEVER THE APPROACH THE ACQUIRERS OFFER WHAT AMOUNTS TO A CLASSIC FRANCHISING SALES PITCH THEY AGREE TO HELP DOCTORS IN SUCH AREAS AS ADMINISTRATION PURCHASING AND ACCOUNTING IN ADDITION BUYERS PROMISE TO USE THEIR CLOUT TO BRING IN BIG NEW BLOCKS OF BUSINESS CHIEFLY PATIENTS ENROLLED IN MANAGEDCARE ORGANIZATIONS THAT'S AN APPEALING PACKAGE FOR MANY DOCTORS WHO WORRY HOW HEALTHCARE REFORM WILL AFFECT THEIR BUSINESSES AS MANAGED CARE CAME INTO OUR AREA WE COULD SEE OUR TRADITIONAL BASE OF PATIENTS BEING ERODED SAYS A TYPICAL SELLER HOWARD MICHAELS HEAD OF THE 10DOCTOR SAMARITAN FAMILY PRACTICE IN SAN JOSE CALIF WHAT WE NEEDED WAS ACCESS TO MANAGEDCARE CONTRACTS DR MICHAELS SAYS HE THOUGHT ABOUT LINKING UP WITH A LOCAL HOSPITAL BUT DECIDED THAT HE AND HIS COLLEAGUES WOULD PRESERVE MORE AUTONOMY BY SELLING SAMARITAN TO PACIFIC PHYSICIAN SEICES THEY DID SO THIS PAST APRIL SINCE THEN DR MICHAELS SAYS PPS HAS HELPED SAMARITAN DO MORE BUSINESS WITH PRUCARE THE MANAGEDCARE UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA NOW SAMARITAN WANTS TO HIRE MORE DOCTORS TO HANDLE ITS PATIENT LOAD SUCH ASSISTANCE CARRIES A PRICE ACQUIRERS SUCH AS PPS TYPICALLY KEEP DOCTORS UNDER LONGTERM EMPLOYMENT CONTRACTS PHYSICIANS CAN'T EASILY QUIT AND SET UP A NEW PRACTICE NEARBY IN SOME CASES THEY MUST SURRENDER WHATEVER MONEY THEY RECEIVED FROM THE ORIGINAL SALE OF THE PRACTICE IF THEY DO LEAVE BUYERS ALSO AREN'T SHY ABOUT CHARGING FEES IN ADDITION TO THE BASIC MANAGEMENT FEES THE BUYERS OFTEN LINE UP A 50 SHARE OF EARNINGS FROM NEW ANCILLARY SERVICES THAT THE DOCTORS PROVIDE THESE SERVICES SUCH AS RADIOLOGY OR PHYSICAL THERAPY OFTEN PROVE HIGHLY LUCRATIVE EVEN SO SOME DOCTORS SAY THESE TIES WITH ACQUIRERS ARE WORTH IT WE HAVE A NATIONAL PURCHASING CONTRACT NOW AND THAT GETS US A DISCOUNT ON A LOT OF THINGS SAYS RAY FERNANDEZ MEDICAL DIRECTOR OF THE NALLE CLINIC IN CHARLOTTE NC THE 100DOCTOR CLINIC LINKED UP WITH PHYCOR IN 1990 AND NOW SAVES MONEY ON ITEMS RANGING FROM GAUZE TO COMPUTERS HE SAYS SOME OF THE BIGGEST SAVINGS ARE IN MALPRACTICE INSURANCE DR FERNANDEZ OBSERVES DOCTORS IN HIS CLINIC USED TO PAY A TOTAL OF 450000 A YEAR FOR COVERAGE WITH PHYCOR THEIR BILL HAS DROPPED TO 270000 EVEN THOUGH THE DOCTORS STILL USE THE SAME INSURANCE CARRIER A UNIT OF CNA FINANCIAL CORP SIMPLY GETTING RID OF THE ADMINISTRATIVE HASSLES SUCH AS KEEPING A COMPUTER SYSTEM RUNNING WAS WORTH IT TO RONALD LOEPPKE OF GREELEY COLO HE AND THE OTHER PHYSICIANS IN A 50DOCTOR CLINIC SOLD THEIR NONMEDICAL ASSETS TO PHYCOR IN 1990 AND SAY THEY ARE GLAD THEY DID IT'S ALLOWED US TO PRACTICE MEDICINE WHILE THEY HELP US WITH THE BUSINESS DR LOEPPKE SAYS IN OTHER CASES NEW OWNERS PITCH THEIR ABILITY TO EXPAND A PRACTICE CAREMARK INTERNATIONAL INC A HEALTHCARE COMPANY WITHIN THE PAST YEAR HAS BOUGHT LARGE CLINICS IN TEXAS AND OKLAHOMA SAM WILLCOXON PRESIDENT OF CAREMARK'S PHYSICIAN RESOURCES DIVISION SAYS HE WANTS TO HELP DOCTORS PULL SERVICES OUT OF THE TRADITIONAL HOSPITAL SETTING SO PHYSICIANS CAN CONTROL THEM DIRECTLY NOT ALL INVESTMENTS IN DOCTORS' PRACTICES HAVE WORKED OUT WELL PHYCOR IN 1989 BOUGHT ONE TENNESSEE CLINIC THAT STUMBLED AFTER ITS MAJOR SOURCE OF PATIENTS PRUCARE CUT BACK ITS BUSINESS IN TENNESSEE LAST YEAR PHYCOR WAS FORCED TO TAKE AN 186 MILLION RESTRUCTURING CHARGE IN CONNECTION WITH THAT CLINIC SOME DOCTORS TOO ARE CONCERNED ABOUT THE POTENTIAL LOSS OF FREEDOM FROM BECOMING PART OF A CHAIN AT THE GREELEY CLINIC FOR EXAMPLE THREE DOCTORS QUIT IN 1990 RATHER THAN BE PART OF THE PHYCOR TRANSACTION LATELY THOUGH ACQUIRERS SAY THEY'VE HAD NO TROUBLE FINDING RECRUITS I'M SEEING MORE AND MORE DOCTORS COMING TO ME SAYS GARY GRAVES PRESIDENT OF PPS SOLO PRACTITIONERS ARE GETTING CLOBBERED ON THEIR REIMBURSEMENTS FOR SERVICES THAT MAKES THEM THINK ABOUT JOINING OUTFITS LIKE MINE MEANWHILE THE STOCK MARKET HAS BEEN GIVING ITS BLESSING TO ACQUISITIONS OF PHYSICIAN PRACTICES PHYCOR SHARES HAVE CLIMBED 42 SINCE APRIL TO MORE THAN 19 APIECE PPS IS UP MORE THAN 60 OVER THE SAME PERIOD ADJUSTING FOR A 3FOR2 STOCK SPLIT WARBURG PINCUS OFFICIALS SAY THAT AT SOME POINT THEY WOULD LIKE TO TAKE THEIR AMERICAN HEALTH CARE VENTURE PUBLIC TOO THE VENTURE'S CHIEF EXECUTIVE OFFICER JAMES CARLSON SAYS HE WILL OPEN GROUP PRACTICES IN PHILADELPHIA AND CHICAGO BY YEAREND ADDING THAT HE IS IN TALKS ABOUT SETTING UP SIMILAR FACILITIES IN FOUR OR FIVE OTHER CITIES WE'D LIKE TO ESTABLISH A CONSISTENCY IN IMAGE HE SAYS SO THAT SOME SORT OF BRAND RECOGNITION WOULD OCCUR WHEN PEOPLE WALK INTO OUR DOORS THEY KNOW THEY WOULD BE GREETED IN THE SAME FASHION WHICHEVER FACILITY THEY VISITED 9308240001 930824 PARKER PLEADS GUILTY TO FEDERAL CHARGES INVOLVING THREE BANKS LOS ANGELES SOUTHERN CALIFORNIA BUSINESSMAN MICHAEL E PARKER CONVICTED EARLIER THIS YEAR OF DEFRAUDING COLUMBIA SAVINGS & LOAN ASSOCIATION WITH AN EQUIPMENTLEASING SCHEME PLEADED GUILTY TO FEDERAL CHARGES OF DEFRAUDING TWO MORE BANKS AND MAKING FALSE STATEMENTS TO A THIRD MR PARKER 45 YEARS OLD WAS PRESIDENT OF PARKER AUTOMOTIVE CORP A MAKER OF AUTOMOBILE CLEANING GEAR AND PARKER NORTH AMERICAN CORP COSTA MESA CALIF A LEASING COMPANY BOTH COMPANIES ARE IN FEDERAL BANKRUPTCY PROCEEDINGS THE RECENT CHARGES INVOLVED 195 MILLION IN LOSSES TO BANKS THAT LENT MONEY TO OR PURCHASED LEASES FROM MR PARKER'S COMPANIES ACCORDING TO PROSECUTOR MARK HOLSCHER OF THE US ATTORNEY'S OFFICE HERE TWO OF THE CHARGES ORIGINATED IN STATE INDICTMENTS IN OKLAHOMA AND NEVADA AND WERE CONSOLIDATED WITH A FEDERAL CASE HERE THE PREVIOUS CONVICTION BY A FEDERAL COURT JURY ON MULTIPLE CHARGES HERE LAST APRIL INVOLVED MR PARKER'S SALE OF ABOUT 166 MILLION IN FRAUDULENT LEASE CONTRACTS TO COLUMBIA THE THRIFT IN BEVERLY HILLS CALIF IS OPERATING UNDER FEDERAL REGULATORY SUPERVISION UNDER THE RECENT CHARGES MR PARKER ADMITTED THAT HE PARTICIPATED IN SCHEMES TO MISAPPROPRIATE A 79 MILLION LOAN FROM FIRST INTERSTATE BANK OF NEVADA LAS VEGAS AND THE PROCEEDS OF A 10 MILLION SALELEASEBACK AGREEMENT WITH SOONER FEDERAL SAVINGS & LOAN ASSOCIATION OF TULSA OKLA HE ALSO CAUSED FALSE STATEMENTS TO BE MADE TO HOME BANK IN SIGNAL HILL CALIF IN ORDER TO OBTAIN A 2 MILLION LINE OF CREDIT OF WHICH THE BANK LOST 16 MILLION MR PARKER'S LAWYER CHAD HUMMEL DECLINED TO COMMENT ON THE PLEAS 9308240090 930713 ADMITTING NO GUILT TRADERS SNARED BY FBI SEEM BETTER OFF NOW FOR STONEWALLING THEN THE CHICAGO FUTURES PROBES SHOW VARIED OUTCOMES COOPERATION HAD A PRICE THE MERC DENIES RETRIBUTION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FOUR YEARS AFTER THE FEDERAL GOVERNMENT'S MULTIMILLIONDOLLAR UNDERCOVER INVESTIGATION OF THIS CITY'S FUTURES MARKETS THE OUTCOME FOR TWO TRADERS SNARED IN THE STING CONTINUES TO RAISE QUESTIONS OF INJUSTICE AND RETALIATION AT THE CHICAGO MERCANTILE EXCHANGE IN 1989 AN UNDERCOVER AGENT FOR THE FEDERAL BUREAU OF INVESTIGATION CAUGHT FLOOR BROKERS WILLIAM WALSH AND ROBERT MOSKY CHEATING THEIR CLIENTS AT THE MERC THE TWO YOUNG TRADERS WERE AMONG THOSE INDICTED AFTER THE TWOYEAR FBI PROBE OF THE MERC AND THE CHICAGO BOARD OF TRADE AS FEDERAL AGENTS FANNED OUT WITH SUBPOENAS TALES SWEPT THE EXCHANGES OF FBI MOLES IN THE TRADING PITS SECRETLY TAPED CONVERSATIONS AND TRADERS ADMITTING GUILT AND MAKING DEALS WITH PROSECUTORS TO INFORM ON THEIR COLLEAGUES PARANOIA WAS RAMPANT AND NO ONE KNEW WHOM TO TRUST SINCE THEN THE LIVES OF MESSRS WALSH AND MOSKY HAVE TAKEN VERY DIFFERENT TURNS ILLUSTRATING WHAT PROSECUTORS AND A FEDERAL JUDGE ASSERT IS A PATTERN OF RETRIBUTION BY THE CHICAGO MERC AGAINST TRADERS WHO DARED TO COOPERATE WITH FEDERAL AUTHORITIES IN ALL 13 OF 45 TRADERS WHO WERE CONVICTED OR WHO ADMITTED TO CRIMES HAVE RETURNED TO THE MARKETS AT THE CHICAGO BOARD OF TRADE TWO OF FIVE TRADERS WHO HAVE RETURNED COOPERATED WITH THE GOVERNMENT BUT AT THE MERC NO TRADER WHO AGREED TO HELP AUTHORITIES WAS EVER ALLOWED BACK ON THE TRADING FLOOR MR WALSH NOW 27 WAS ONE OF THOSE WHO ADMITTED TO DEFRAUDING CLIENTS COOPERATED WITH INVESTIGATORS AND FORMALLY TESTIFIED AGAINST OTHER TRADERS AS PART OF A PLEA BARGAIN IN ITS OWN DISCIPLINARY PROCEEDINGS AFTER THE INVESTIGATION THE MERC FINED MR WALSH 35000 AND BANNED HIM FOR LIFE THE DEATH PENALTY AS SOME TRADERS CALL IT MR MOSKY CHOSE ANOTHER PATH HE STONEWALLED INVESTIGATORSAND REFUSED TO TESTIFY AGAINST HIS COLLEAGUES HE FOUGHT THE GOVERNMENT IN COURT BEFORE LATER PLEADING GUILTY TO THE SAME FELONY CHARGE AS MR WALSH WHEN THE MERC DISCIPLINED MR MOSKY IT MERELY SUSPENDED HIM NOW 37 YEARS OLD HE IS BACK IN THE MERC'S MONEY PITS TRADING FOR HIS OWN ACCOUNT NOT FOR CUSTOMERS THAT KIND OF DISPARATE TREATMENT SENDS A VERY BAD MESSAGE THAT COOPERATING WITH THE GOVERNMENT IN THIS CASE DID TRADERS NO GOOD WHATSOEVER SAYS DAN GILLOGLY AN ASSISTANT US ATTORNEY WHO PROSECUTED CASES AGAINST CHICAGO MERC TRADERS IT'S A FARCE ADDS MR WALSH WHO NOW BUYS FIXES UP AND RESELLS BLIGHTED REAL ESTATE FOR A LIVING WE WERE ACCUSED OF THE SAME THINGS IF THEY'RE GOING TO KICK PEOPLE OUT THEN KICK EVERYONE OUT JUST TREAT EVERYBODY THE SAME CHICAGO MERC OFFICIALS DENY THE EXCHANGE USED ITS BROAD DISCIPLINARY POWERS AS A SELFREGULATED ORGANIZATION TO RETALIATE AGAINST THOSE WHO COOPERATED WITH THE GOVERNMENT AS MR WALSH DID OUR POSITION ON THAT IS THAT WE ABSOLUTELY WERE NOT PUNISHING COOPERATING WITNESSES SAID MERC SPOKESMAN ANDREW YEMMA WE WERE PUNISHING PEOPLE WHO ADMITTED TO A PATTERN OF CORRUPT BEHAVIOR THE OTHER PEOPLE WHO WERE IN FACT CONVICTED AND HAD THEIR CASES ADJUDICATED NEVER ADMITTED TO ANYTHING LIKE THAT MR MOSKY DIDN'T RESPOND TO REQUESTS MADE THROUGH HIS LAWYER FOR COMMENT MEANWHILE THE FEDERAL AGENCY THAT REGULATES FUTURES MARKETS THE COMMODITY FUTURES TRADING COMMISSION OR CFTC IS TAKING ACTION AGAINST SOME TRADERS THE MERC HAS ALLOWED TO RETURN TO THE FLOOR ON JULY 2 FOR INSTANCE THE CFTC SUSPENDED TWO SUCH TRADERS UNDER PROVISIONS OF THE COMMODITY EXCHANGE ACT THAT ALLOW THE AGENCY TO REMOVE FELONS FROM THE TRADING FLOOR THE MERC AND ITS CROSSTOWN RIVAL THE CHICAGO BOARD OF TRADE ARE TWO OF THE WORLD'S LARGEST FINANCIAL MARKETS THEY OFFER HUGELY POPULAR FUTURES CONTRACTS BASED ON STOCKS BONDS AND CURRENCIES AND CONVENTIONAL COMMODITIES SUCH AS GRAINS AND PORK BELLIES THE LURE OF THEIR TRADING PITS IS STRONG FOR YOUNG PEOPLE FROM WORKINGCLASS CHICAGO NEIGHBORHOODS THOSE CAPABLE OF REMAINING COOLHEADED AMID THE SCREAMING AND HANDWAVING IN THE PITS CAN EARN 300000 OR MORE A YEAR IF THEY DEVELOP A FEEL FOR THEIR MARKET TALES ABOUND OF YOUNG TRADERS WHO MADE GOOD AND MOVED INTO THE HIGHRISE CONDOMINIUMS OF LINCOLN PARK OR THE MANSIONS OF THE NORTH SHORE SUBURBS MR WALSH'S WAS SUCH A STORY BORN ON THE SOUTH SIDE OF CHICAGO WILLIAM WALSH IS THE YOUNGEST SON OF AN ELECTRICIAN LIKE THREE OF HIS FOUR BROTHERS AND SISTERS HE TOOK A JOB AS A RUNNER AT THE CHICAGO MERC BUT HE WAS THE ONLY ONE WHO STUCK WITH IT LANDING A JOB AS A FLOOR BROKER IN 1986 AFTER HE GRADUATED FROM CHICAGO'S LOYOLA UNIVERSITY THOMAS WALSH HIS FATHER SAYS WILLIAM WAS THE MOST AMBITIOUS OF HIS FIVE CHILDREN HE WAS A HUSTLER PEOPLE TOLD ME HE WOULD BE A MILLIONAIRE THIS PROPHECY THE ELDER MR WALSH SAYS PROVED CORRECT THE YOUNG TRADER'S CAREER IN THE MERC'S SWISS FRANC FUTURES PIT CAME CRASHING DOWN ON A BITTER COLD JANUARY DAY IN 1989 WHEN HE LEARNED HE WAS AMONG THOSE THE FBI AGENTS HAD SNARED PROSECUTORS DEPICTED MR WALSH AND OTHER INDICTED TRADERS AS EXAMPLES OF THE CORRUPTION THEY SAID WAS PERVASIVE IN THE FUTURES MARKETS THE TRIALS OF MERC TRADERS PROVED INCONCLUSIVE AS JURIES RETURNED SPLIT VERDICTS THAT FELL SHORT OF PROVING THE GOVERNMENT'S ALLEGATIONS OF WIDESPREAD CORRUPTION AND TODAY FEDERAL AUTHORITIES ARE DISMAYED TO SEE THAT MOST OF THOSE WHO FOUGHT THE CRIMINAL CHARGES FARED BETTER IN EXCHANGE DISCIPLINARY PROCEEDINGS THAN THOSE WHO LIKE MR WALSH CHOSE TO COOPERATE NO ONE HAS ACCUSED THE CHICAGO BOARD OF TRADE PUBLICLY OF ABUSING ITS SELFPOLICING POWERS TO PENALIZE GOVERNMENT WITNESSES YET PROSECUTORS NOTE THAT TWO OF THE FIVE TRADERS WHO HAVE RETURNED TO THE BOARD OF TRADE FLOOR AFTER BEING CONVICTED OR ADMITTING TO CRIMES WERE CONVICTED OF THE MOST SERIOUS CHARGES THE GOVERNMENT BROUGHT THEY ARE JOEL FETCHENHIER AND EDWARD COX III WHO ARE BACK AFTER SERVING TIME IN PRISON FOR THE RACKETEERING OFFENSES THE TWO MEN WHO DIDN'T RETURN PHONE CALLS SEEKING COMMENT ARE LIKE MR MOSKY TRADING FOR THEIR OWN ACCOUNTS NOT FOR CUSTOMERS WE CONVICTED THEM OF RACKETEERING OFFENSES VERY SIGNIFICANT OFFENSES A PATTERN OF REPEATED MISCONDUCT SAID ASSISTANT US ATTORNEY MARK ROTERT WHO PROSECUTED MESSRS FETCHENHIER AND COX SO IN LIGHT OF THOSE JURY VERDICTS YOU CAN DRAW YOUR OWN CONCLUSIONS ABOUT WHETHER IT'S APPROPRIATE FOR THEM TO BE BACK ON THE FLOOR TRADING STILL AUTHORITIES SAY THE BOARD OF TRADE APPEARS TO HAVE BEEN MORE EVENHANDED THAN THE RIVAL MERCANTILE EXCHANGE IN METING OUT PENALTIES IN A SERIES OF DISCIPLINARY ACTIONS AFTER THE FBI INVESTIGATION THE MERC EXPELLED AND HEAVILY FINED EIGHT TRADERS INCLUDING MR WALSH WHO PLEADED GUILTY TO FRAUD CHARGES AND AGREED TO TESTIFY AGAINST THEIR COLLEAGUES BY CONTRAST THE MERC METED OUT FAR LIGHTER PENALTIES TO 10 TRADERS WHO FOUGHT THE GOVERNMENT'S CHARGES AND LATER PLEADED GUILTY TO CRIMES WITHOUT AGREEING TO COOPERATE TWO OTHER NONCOOPERATING TRADERS WHO WERE CONVICTED OF FELONIES IN COURT INCLUDING MR MOSKY ALSO DREW RELATIVELY LIGHT PUNISHMENTS FROM THE EXCHANGE OF THESE DOZEN NONCOOPERATING MERC TRADERS EIGHT ARE NOW BACK ON THE EXCHANGE FLOOR THE MERC'S HARSH TREATMENT OF COOPERATING TRADERS DREW A FURIOUS RESPONSE IN JULY 1991 FROM THE FEDERAL JUDGE WHO PRESIDED OVER TRADERS' CRIMINAL TRIALS I AM OUTRAGED US DISTRICT COURT JUDGE ANN WILLIAMS SAID IN SENTENCING MR WALSH TO PROBATION THAT INDIVIDUALS WHO HAVE ADMITTED THEIR GUILT AND TESTIFIED THAT CORRUPTION IS A WAY OF LIFE ON THE EXCHANGE FLOOR WERE PUNISHED SO HARSHLY WHILE OTHER DEFENDANTS WHO WERE CONVICTED ARE STILL TRADING BUT SUCH REBUKES HAVE DONE NOTHING TO ALTER THE MERC'S POSITION IT CONTENDS NOW AS IT DID THEN THAT THE TRADERS IT EXPELLED PLEADED GUILTY TO MORE SERIOUS CRIMES THAN DID THOSE IT ALLOWED TO RETURN FOR EXAMPLE EACH OF THE EIGHT EXPELLED TRADERS PLEADED GUILTY TO ONE FRAUD FELONY A SCHEME COUNT IN WHICH EACH TRADER ADMITTED TO A PATTERN OF ONGOING MISCONDUCT CHEATING NUMEROUS INVESTORS OUTSIDE THE EXCHANGE BY CONTRAST MERC OFFICIALS NOTE MANY OF THE TRADERS WHO ADMITTED CRIMES AND HAVE SINCE RETURNED TO THE FLOOR PLEADED GUILTY TO VIOLATIONS OF THE FEDERAL COMMODITY EXCHANGE ACT THESE GUILTY PLEAS DIDN'T INCLUDE ADMISSIONS OF THE SAME BROAD MISCONDUCT THAT WERE CONTAINED IN THE FRAUD PLEAS OF THE EXPELLED TRADERS EXCHANGE OFFICIALS SAY PROSECUTORS COUNTER THAT THE MERC APPARENTLY IGNORED EVIDENCE THAT WAS CONTAINED IN INDICTMENTS AND PRESENTED IN OPEN COURT AGAINST NONCOOPERATING TRADERS THE PATTERN OF UNEQUAL TREATMENT THEY SAY IS ESPECIALLY CLEAR IN THE CASES OF MESSRS WALSH AND MOSKY MR WALSH PLEADED GUILTY TO ONE FELONY WIREFRAUD CHARGE AND ONE MISDEMEANOR VIOLATION OF THE COMMODITY EXCHANGE ACT THE COURT SENTENCED HIM TO FIVE YEARS' PROBATION IN A CRIMINAL TRIAL A JURY CONVICTED MR MOSKY ON SEVEN COUNTS OF CEA VIOLATIONS FOUND HIM NOT GUILTY ON 20 COUNTS AND WAS DEADLOCKED ON THE REMAINING 55 COUNTS INCLUDING A FEDERAL RACKETEERING CHARGE TO AVOID RETRIAL ON THOSE CHARGES MR MOSKY PLEADED GUILTY TO ONE FELONY WIREFRAUD COUNT AND THE GOVERNMENT DROPPED THE REST HE WAS SENTENCED TO FOUR MONTHS IN PRISON AND FOUR MORE MONTHS IN A WORKRELEASE PROGRAM AND FINED 36000 IN 1991 THE CFTC DEMANDED THAT THE MERC EXPLAIN WHY THE PENALTIES IT IMPOSED ON COOPERATING TRADERS AND NONCOOPERATING TRADERS WERE SO DIFFERENT IN A 33PAGE RESPONSE A LAWYER AT THE FIRM OF THE MERC'S OUTSIDE COUNSEL JERROLD SALZMAN ACKNOWLEDGED THAT MESSRS MOSKY AND WALSH HAD BOTH PLEADED GUILTY TO THE SAME FELONY CHARGE WIRE FRAUD HOWEVER THE MERC ATTORNEY SAID MR WALSH'S PLEA CONTAINED AN ADMISSION THAT HE PARTICIPATED IN AN ONGOING SCHEME OF CHEATING CUSTOMERS BY CONTRAST THE MERC LAWYER SAID MR MOSKY'S PLEA ADMITTED ONLY THAT THE TRADE DESCRIBED ABOVE WAS AMONG A NUMBER OF NONCOMPETITIVE TRADES MR MOSKY EXECUTED THEREFORE THE MERC LAWYER ARGUED MR MOSKY'S ADMISSION OF GUILT WAS FAR DIFFERENT FROM MR WALSH'S ADMISSION EVEN THOUGH THEY PLEADED GUILTY TO THE SAME CRIME MR MOSKY'S ATTORNEY JEFFREY STEINBACK SAYS THE LANGUAGE IN HIS CLIENT'S GUILTY PLEA WAS DRAFTED CAREFULLY TO ALLOW MR MOSKY TO RETURN TO THE TRADING FLOOR RELATIVELY SPEAKING IT WAS A GOOD WAY TO RESOLVE IT FOR BOB MR STEINBACK SAYS IT DID SUBSTANTIALLY NARROW HIS EXPOSURE THE EPISODE MR STEINBACK ADDS HAS NEVERTHELESS BEEN VERY HARD ON MR MOSKY WHO LIVES IN A MODEST CHICAGO HOME WITH HIS WIFE AND CHILDREN DENNIS KLEJNA CHIEF OF ENFORCEMENT FOR THE CFTC WON'T SAY WHETHER HE THINKS THE MERC RETALIATED AGAINST GOVERNMENT WITNESSES NEVERTHELESS HE ADDS WE'RE OBVIOUSLY COGNIZANT OF JUDGE WILLIAMS' COMMENTS ABOUT THE DISPARITY OF TREATMENT PEOPLE HERE WERE COGNIZANT OF THIS MATTER EVEN BEFORE JUDGE WILLIAMS SAID IT THERE WAS A STAFF INQUIRY HERE INTO THE EXCHANGE'S ACTIONS I'M NOT PREPARED TO DEFEND THE EXCHANGE'S ACTIONS MR KLEJNA NOTES THAT MR MOSKY AND OTHER CONVICTED TRADERS WHO ARE TRADING NOW ARE ONLY DOING SO WHILE THEY APPEAL SEPARATE SUSPENSIONS IMPOSED BY A CFTC ADMINISTRATIVE LAW JUDGE MOREOVER MR KLEJNA SAYS HIS ENFORCEMENT DIVISION HAS APPEALED SUSPENSIONS OF 14 TRADERS BY THE CFTC LAW JUDGE BECAUSE HE DOESN'T THINK THEY WERE SEVERE ENOUGH WHERE THE LAW JUDGES HAVE GIVEN SOMETHING LESS THAN A PERMANENT EXPULSION WE HAVE APPEALED THOSE DECISIONS MR KLEJNA SAYS WE'VE GONE ON THE RECORD AND SAID WE WANTED THE TRADERS OUT FOREVER THE CHICAGO BOARD OF TRADE MEANWHILE HAS FILED A FRIENDOFTHECOURT BRIEF ON BEHALF OF CONVICTED TRADERS SUSPENDED BY THE CFTC'S LAW JUDGE IT ARGUES THAT THE EXTRA CFTC PENALTIES AREN'T FAIR BECAUSE MANY OF THE TRADERS HAVE ALREADY SERVED PRISON SENTENCES AND BEEN DISCIPLINED BY THE CBOT ITSELF MR WALSH WON'T HAZARD A GUESS AS TO THE MERC'S MOTIVES IN EXPELLING HIM AND OTHER COOPERATING TRADERS WHILE ALLOWING MR MOSKY AND OTHERS TO RETURN TO THE FLOOR BUT HIS FATHER THOMAS WALSH HAS A THEORY THEY DON'T WANT ANY SQUEALERS DOWN THERE HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR MERC DEFENDS SEVERITY OF PENALTIES WSJ AUG 24 1992 9307130057 YY93 MM08 9308240074 930722 LEISURE & ARTS MUSIC ACHY BREAKY HEARTS A WORLD AWAY FROM NASHVILLE BY MICHELLE MAGEE TOKYO THREE OR FOUR NIGHTS A WEEK 26YEAROLD KEIKO WALKER SINGS TALES OF CHILDHOOD POVERTY AND TWOTIMING LOVERS FOR ANYONE WHO'LL LISTEN IT'S NOT HER SOUL SHE'S BARING BUT THOSE OF AMERICAN COUNTRYWESTERN SINGERS SUCH AS DOLLY PARTON EMMYLOU HARRIS AND PATSY CLINE BUT NO MATTER WALKER HAS FOUND NO SHORTAGE OF LISTENERS FOR HER OWN RENDITIONS OF PARTON'S COAT OF MANY COLORS HARRIS'S BENEATH STILL WATERS AND OTHER DOWNHOME BALLADS WALKER IS IN FACT ONE OF THE BIGGEST STARS IN NASHVILLE THE COUNTRYWESTERN BAR IN TOKYO'S GINZA DISTRICT THAT IS NOT THE TENNESSEE CAPITAL OF TWANG TO THE GROWING LEGIONS OF LOYAL FANS WHO FLOCK TO NASHVILLE AND NEARLY TWO DOZEN OTHER COUNTRYWESTERN LIVE HOUSES IN TOKYO IT MATTERS NOT AT ALL THAT WALKER HAS NEVER LIVED OUTSIDE OF JAPAN HER TWANG IS ALL THAT MATTERS IT NEVER OCCURRED TO ME THAT BECAUSE I WAS JAPANESE AND NOT FROM THE DEEP SOUTH THAT I COULDN'T BECOME A COUNTRYMUSIC SINGER SHE SAYS NOW WALKER IS MAKING HER FIRST ALBUM A COMPILATION OF HER FAVORITE AMERICAN COUNTRY TUNES TO BE RELEASED IN OCTOBER THAT IS SWEET VINDICATION INDEED FOR A WOMAN WHO WAS ONCE ADVISED BY A RECORD PRODUCER TO JETTISON HER BELOVED COUNTRY MUSIC IN FAVOR OF THE SHALLOW STRAINS OF JAPANESE POP WALKER'S SUCCESS IS JUST ONE OF MANY INDICATIONS THAT AMERICAN COUNTRY MUSIC LIKE JAZZ AND THE CURVEBALL IS TAKING OFF IN JAPAN NO DOUBT RECENT US COUNTRY SUPERSTARS SUCH AS GARTH BROOKS AND BILLY RAY CYRUS CAN CLAIM SOME CREDIT FOR THE GENRE'S NEW POPULARITY LONG USED TO TRACKING AMERICAN CULTURAL TRENDS JAPANESE TAKE SUCH DEVELOPMENTS VERY SERIOUSLY ALL THE MAJOR JAPANESE MUSIC STORES HAVE ADDED COUNTRY SECTIONS IN THE PAST YEAR FOR THE PAST FOUR YEARS AN ANNUAL COUNTRY FESTIVAL IN JAPAN'S OWN DEEP SOUTH KYUSHU ISLAND HAS ATTRACTED TENS OF THOUSANDS OF PEOPLE AN OUTRIGHT EXPLOSION OF COUNTRY MUSIC AS IN THE US IS A LONG WAY OFF IF IT EVER COMES BUT THERE'S DEFINITELY A MARKET HERE AND IT'S TAKING OFF SAYS CLARK WAYNE BOWDOIN DIRECTOR OF OPERATIONS AT SUPER COUNTRY KTYO JAPAN'S FIRST ALLCOUNTRY RADIO STATION KTYO WAS LAUNCHED LAST YEAR AND NOW ESTIMATES ITS AUDIENCE AT 15 MILLION LISTENERS WALKER'S FOLLOWING NO LONGER CONSISTS JUST OF FIFTYSOMETHING FOLKS WHO ARE AT THE CORE OF JAPAN'S COUNTRYMUSIC LOVING POPULATION LATELY THIS YOUNGEST OF JAPAN'S COUNTRY MUSICIANS HAS BEEN CONSISTENTLY APPEALING TO TRENDY JAPANESE IN THEIR 20S AND 30S ACCORDING TO MANAGERS OF CLUBS WHERE SHE SINGS WALKER'S BIG BREAK CAME LAST SUMMER WHEN SHE AND HER BAND WERE ASKED TO OPEN AN OUTDOOR TELEVISED ROCK CONCERT NEAR TOKYO HEADLINED BY HOT YOUNG ROCKERS SHINA AND THE ROCKETS IT WAS AN UNHEARDOF EXPERIMENT IN JAPAN'S ROCKANDROLL WORLD I THOUGHT ARE WE GOING TO FIT IN I SING IN ENGLISH AND I SING COUNTRY MUSIC' SAYS WALKER WHOSE COOL WORLDWISE STAGE PRESENCE BELIES A SHY TEETOTALING OFFSTAGE MANNER MUCH OF HER SPEECH IS PUNCTUATED WITH GIGGLES HER RENDITIONS OF COUNTRY TUNES PROVED SUCH A HIT WITH THE YOUNG AUDIENCE OF 8000 HOWEVER THAT WALKER AND HER BAND HAVE BEEN INVITED BACK TO OPEN THIS YEAR'S SHOW WHICH TAKES PLACE NEXT MONTH WALKER BROKE INTO PROFESSIONAL MUSIC AT 17 WHEN HER UNCLE ASKED HER TO SING BACKUP FOR HIS COUNTRY BAND A YEAR LATER SHE FORMED KEIKO WALKER AND THE HOT STREET BAND NAMED AFTER A GROUP THAT ONCE BACKED EMMYLOU HARRIS IN FACT NO ONE HAS INFLUENCED HER STYLE MORE THAN HARRIS WHOM WALKER ONCE DROVE OVERNIGHT FROM THE REAL NASHVILLE TO RURAL NORTH CAROLINA TO SEE IN CONCERT WE DIDN'T KNOW WHERE SHE WAS PERFORMING ONLY THAT IT WAS IN WILKESBORO SHE RECALLS SO I KEPT MY WINDOW ROLLED DOWN AND WE DROVE SLOWLY THROUGH THE STREETS THEN I FINALLY HEARD HER AND WE RUSHED INTO TO CLUB TO SEE HER IN THE MIDDLE OF HER PERFORMANCE I DIDN'T EVEN BLINK UNLIKE HER FORMERLY HARDDRINKING IDOL WALKER LIVES A QUIET LIFE WITH HER MOTHER AND BOYFRIEND WHO'S ALSO HER MANAGER AND BASS PLAYER FOR FUN SHE COLLECTS FLOWERY TEACUPS AND SAUCERS ONSTAGE SHE DRESSES IN TIGHT BLUE JEANS AND TASSELED JACKETS OTHERWISE SHE GOES OUT AND ABOUT IN SILKY DRESSES AND STOCKINGS LIKE MOST JAPANESE WOMEN IT WAS EIGHT YEARS AGO THAT SHE WAS TOLD BY HER RECORD PRODUCERS THAT SHE COULD CUT HER OWN ALBUM ON THE CONDITION THAT SHE DITCH HER COUNTRY MUSIC FOR JAPANESE POP ROCK BUT I COULD NEVER SHE SAYS FOR ME COUNTRY MUSIC COMES FIRST I DON'T WANT TO BE POPULAR IF I CAN'T BE A COUNTRYMUSIC SINGER THAT DETERMINATION HAS OFTEN LANDED HER IN SOME UNGLAMOROUS VENUES WALKER HAS PLAYED IN HEALTH CLUBS AND TINY BARS WHERE SHE AND HER FIVEMEMBER BAND HAVE OUTNUMBERED THE AUDIENCE AND EVEN THOUGH THEY NOW HAVE A STEADY FLOW OF GIGS THE BOYS IN HER BAND HAVE DECIDED TO PLAY IT SAFE AND KEEP THEIR DAY JOBS THAT'S PROBABLY SMART SINCE MUSICAL TASTES ARE AS FICKLE IN JAPAN AS ELSEWHERE IN FACT JAPAN HAS HAD A FLING WITH COUNTRY MUSIC BEFORE IT ENJOYED A WAVE OF POPULARITY IN THE 1950S AND '60S MOSTLY DUE TO THE INFLUENCE OF US SERVICEMEN STATIONED HERE COUNTRYMUSIC BANDS FLOURISHED WITH PERFORMERS SUCH AS MASATARU CHARLIE NAGATANI KEISUKE JIMMIE TOKITA AND KAZUYA KOSAKA BUT AS THE NUMBER OF AMERICAN TROOPS DIMINISHED MOST OF THE MUSICIANS HAD TO FIND OTHER WORK KOSAKA BECAME A WELLKNOWN ACTOR OTHERS WENT INTO ROCKANDROLL OTHERS JUST FELL BY THE WAYSIDE MORE RECENTLY BILLY JOE BJ CLAYTON A COUNTRY MUSICIAN FROM DETROIT MOVED TO JAPAN TO POPULARIZE WHAT HE CALLS NEWWAVE COUNTRY MUSIC CLAYTON WHO CAME HERE LAST YEAR SAYS JAPANESE COUNTRY MUSICIANS ARE TOPNOTCH BUT THEY'RE TERRIBLE SINGERS PART OF THE PROBLEM IS WITH THEIR ENGLISH PRONUNCIATION MANY SING IN ENGLISH BUT WITH A NOTICEABLE JAPANESE ACCENT OTHERS HAVE TRIED SINGING IN JAPANESE BUT WALKER WHO STUDIED AT INTERNATIONAL SCHOOLS AND SPEAKS PERFECT ENGLISH SAYS SHE CANNOT EXPRESS THE TRUE FEELING OF COUNTRY MUSIC IN JAPANESE SOME PEOPLE HAVE TRIED TO SING COUNTRY IN JAPANESE BUT I DON'T THINK IT FITS SHE SAYS I'VE GOTTEN A LOT OF REQUESTS FOR THAT SONG SINCE I STARTED EXPLAINING IT IN JAPANESE SHE SAYS MOST OF THE SONGS I SING ARE HEARTBREAKING JAPANESE LOVE THEM MS MAGEE IS A FREELANCE WRITER IN TOKYO SEE RELATED LETTER LETTERS TO THE EDITOR STATEMENT OFFENSIVE TO EMMYLOU HARRIS WSJ AUG 24 1993 9307220017 YY93 MM08 9308240055 930702 REVIEW & OUTLOOK EDITORIAL GOVERNMENT MEETS GODOT I HAVE BECOME THE LAUGHINGSTOCK TO ALL NATIONS THE TARGET OF THEIR MOCKING SONGS ALL DAY HE HAS GIVEN ME MY FILL OF BITTER HERBS AND MADE ME DRUNK WITH WORMWOOD HE HAS BROKEN MY TEETH ON GRAVEL FED ON ASHES I AM RACKED WITH PAIN PEACE HAS GONE OUT OF MY LIFE AND I HAVE FORGOTTEN WHAT PROSPERITY MEANS LET THERE BE NO BRIEFING BOOKS AT NEXT WEEK'S MEETING OF G7 LEADERS IN TOKYO SET BIBLES AT EACH PLACE OPEN TO THE BOOK OF LAMENTATIONS LET IT PROVIDE COMFORT AND INSTRUCTION TO THE AFFLICTED GATHERED THERE FOR THEY NEED IT BY THE TIME THE NEXT G7 MEETING ROLLS AROUND SOME OF THE HEADS OF STATE COULD SEE THEIR APPROVAL RATINGS IN THE SINGLE DIGITS CANADA'S BRIAN MULRONEY'S SEEMED HEADED THAT WAY UNTIL HE QUIT JOHN MAJOR HAS THE LOWEST RATINGS OF ANY BRITISH PRIME MINISTER IN HISTORY FRANCOIS MITTERRAND'S ARE NOT MUCH BETTER JAPAN'S KIICHI MIYAZAWA WAS AT 20 BEFORE HIS GOVERNMENT COLLAPSED AND GERMANY'S HELMUT KOHL WINS APPROVAL FROM ONLY 27 OF GERMANS EVEN WHEN BILL CLINTON'S RATING HIT 36 HE STILL LED THE PACK THOUGH HE HAS ACHIEVED A LEVEL OF UNPOPULARITY IN FIVE MONTHS THAT IT TOOK OTHER LEADERS YEARS TO ACHIEVE ACROSS THE INDUSTRIALIZED WORLD PUBLIC ESTEEM FOR GOVERNING PARTIES HAS PLUMMETED BUT APPROVAL FOR OPPOSITION PARTIES HAS NOT GONE UP THERE IS A SENSE THAT NATIONAL LEADERS ARE TOO SMALL FOR THEIR SUITS THAT THEY ARE ADRIFT AND LACK CORE BELIEFS THAT NO ONE FEARS OR IS INSPIRED BY THEM THE MOVEMENTS THAT PROSPER ARE LED BY GADFLIES PEROT IN THE US BOSSI IN ITALY WACHMEISTER IN SWEDEN AND SO ON WHO PROMISE NOT SO MUCH NEW POLICIES BUT TO SMASH THE SYSTEM ITSELF WHAT IS GOING ON HERE WHAT FORCE STRETCHES ACROSS THE HEAVENS AND POLITICAL CULTURES TO CAUSE THIS POLITICAL DISTRESS THERE MUST BE A UNIFIED THEORY IN PART WE ARE SEEING THE DARK SIDE OF MERITOCRACY NATIONAL LEADERS IN THE BUSHCLINTON ERA ARE PERIPATETIC INDIVIDUALS WITH THOUSANDS OF FRIENDS RATHER THAN A FEW GOOD ONES THOUSANDS OF IDEAS RATHER THAN A FEW UNSHAKABLE ONES THESE PROTEAN PEOPLE RISE BY VIRTUE OF THEIR FLEXIBILITY AND GENIALITY THEIR SKILLS ARE DESIGNED FOR RISING BUT NOT FOR RULING WHEN WE GET SICK OF THESE SHALLOW VESSELS WE INDULGE IN THE PLEASURE OF A PEROT LE PEN OR BOSSI THEIR ATTRACTION LIES IN THE FACT THAT THEY HAVEN'T DESIGNED THEMSELVES TO PLEASE EVERYBODY IN THE LAND OF THE PROTEANS THERE IS ALWAYS A SECONDARY MARKET FOR PEOPLE WILLING TO OFFEND BUT THERE ARE OTHER PERHAPS LARGER STRAWS IN THE WIND HAVING TO DO WITH THE WAY WE SEE GOVERNMENT ITSELF THERE IS A WIDE SENSE THAT WE HAVE A MISMATCH BETWEEN OUR FASTMOVING SOCIETY AND OUR SLOWMOVING POLITICAL INSTITUTIONS WE SEEM TO HAVE GOVERNMENT MADE OUT OF BIG STONES BUT WE WANT A GOVERNMENT MADE OUT OF HIGHER TECH MATERIALS SLIGHT BUT STRONG PEOPLE SUCH AS THE CLINTONS CLING TO THE OUTDATED NOTION THAT STRONG GOVERNMENT MUST BE BIG GOVERNMENT AND THEY'RE PERPLEXED WHEN THEIR POPULARITY DROPS MARTIN JACQUES THE BRITISH WRITER ARGUES THAT POLITICIANS AND THE POLITICAL SYSTEM HAVE FAILED TO KEEP ABREAST OF CULTURAL CHANGE OF THE NEW VITALITY OF CIVIL SOCIETY OF THE CHOICES AND IDENTITIES MADE EVER MORE AVAILABLE BY CONSUMER SOCIETY GOVERNMENT NO LONGER SITS AS THE EXECUTIVE COMMITTEE OF THE RULING CLASS ON TOP OF A HIERARCHICAL SOCIETY INSTEAD OF CLASSES LOOKING UP AND DOWN WE NOW HAVE CLIQUES THAT COME FROM ALL DIRECTIONS AND LOOK ACROSS THE SIERRA CLUB PAT ROBERTSON'S 700 CLUB THE AARP ARMY OF SENIOR CITIZENS THE RUSH LIMBAUGH BRIGADE GOVERNMENT SOMETIMES LOOKS LIKE JUST ONE MORE CLIQUE PRESIDENTS DON'T REALLY CONTROL THEIR COUNTRIES THEY REACT TO AND TRY TO MEDIATE THE STRUGGLES BETWEEN THESE INTEREST GROUPS AS A RESULT GOVERNMENTS APPEAR ON THE DEFENSIVE BATTERED BY ONE CRISIS AFTER ANOTHER PERPETUALLY HOPING TO TURN THE CORNER SO THEY CAN TAKE CONTROL THERE IS FRUSTRATION AMONG THE GOVERNORS AT THEIR OWN IMPOTENCE THE RECENTLY FIRED CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT LOOKED BACK AT HIS YEARS IN THE JOHN MAJOR GOVERNMENT AND DECLARED WE GIVE THE IMPRESSION OF BEING IN OFFICE BUT NOT IN POWER EUROPEANS ESPECIALLY FEEL VULNERABLE BECAUSE THEIR GOVERNMENTS CANNOT CONTROL EVENTS THERE IS A WAR IN BOSNIA AND NEONAZI VIOLENCE IN GERMANY THE EASTERN HALF OF THE CONTINENT JUST UNDERWENT A REVOLUTION THAT SEEMED TO TAKE THE WESTERN HALF'S LEADERS BY SURPRISE IN THIS MOOD IN WHICH EVERYONE IS SENSITIVE TO CHAOS AT THE GATES A PHENOMENON SUCH AS IMMIGRATION IS SEEN BY MANY BOTH IN THE US AND EUROPE AS ANOTHER THREATENING UNCONTROLLABLE FORCE CURRENCY MARKETS BATTER NATIONAL GOVERNMENTS THE MEDIUMSIZE POWERS ACKNOWLEDGE THAT THEY CAN'T CONTROL THEIR OWN ECONOMIES FRANCE'S ALAIN MINC ECHOED THE COMMON THEME RECENTLY ALL THAT WE CAN DO IS TO PREPARE FOR THE AMERICAN JAPANESE AND EUROPEAN RECOVERIES LOOMING ABOVE ALL AS THE SYMPTOM OF GOVERNMENTS' WEAKNESS IS THE NEAR UNIVERSAL INABILITY TO CONTROL BUDGETS GOVERNMENTS DON'T FEEL THEY HAVE THE POWER TO REFORM THE WELFARE STATE AND YET THE COMMITMENTS BUILT INTO THE WELFARE STATE POINT STRAIGHT TO NATIONAL BANKRUPTCY BRITAIN'S BUDGET HAS SEEN SOCIAL SPENDING RISE BY 17 IN REAL TERMS WHILE GDP WAS FLAT THE US STORY IS FAMILIAR IN BELGIUM FOR EACH 50000 FRANCS THE MIDLEVEL WORKER TAKES HOME EACH MONTH HE AND HIS COMPANY MUST PAY 200000 FRANCS IN TAXES GOVERNMENTS STARE BLANKLY AT THEIR POLITICS AND CONCLUDE THAT REFORMING THE WELFARE STATE IS POLITICALLY IMPOSSIBLE BECAUSE VARIOUS CLIQUES IN SOCIETY WON'T ALLOW BENEFIT CUTS BUT EVENTUALLY THE WELFARE STATE WITH ITS COST AND CORRUPTION GOES POP AND COLLAPSES SWEDEN WENT POP A FEW YEARS AGO ITALY HAS SPECTACULARLY GONE POP IN GERMANY BRITAIN THE UNITED STATES SWITZERLAND AND FRANCE THE STRAINS ARE OBVIOUS RONALD REAGAN AND MARGARET THATCHER DIDN'T SUFFER FROM THE SAME FLAWS THAT PLAGUE LEADERS TODAYLACK OF VISION A SENSE OF WEAKNESS BUT THOSE LEADERS ARE GONE AND THEIR MOST COMMITTED HEIRS ARE EITHER UNDER 40 OR PREOCCUPIED WITH POSITIONING THEMSELVES FOR THE NEXT ELECTION ROUND WHENEVER THE WEST'S NEXT GENERATION OF LEADERS FINALLY DO EMERGE THEY WILL FACE A DIFFICULT MANDATE PEOPLE WANT TO BE LIGHTLY GOVERNED BY STRONG GOVERNMENTS AT THE MOMENT THE PUBLIC FEELS IT IS INTRUSIVELY BURDENED BY OBSOLETE GOVERNMENTS AT BOTH THE NATIONAL AND LOCAL LEVELS WE'RE IN A PARADOXICAL SITUATION IN WHICH PEOPLE ARE DISTURBED AT THE THOUGHT OF GOVERNMENT LOSING CONTROL OF EVENTS WHILE AT THE SAME TIME THEY HAVE LOST FAITH IN GOVERNMENT'S ABILITY TO SOLVE MANY OF THEIR PROBLEMS MRS THATCHER AND MR REAGAN DID OFFER SOME LESSONS ON HOW TO APPEAR STRONG AND PRINCIPLED AT A TIME WHEN GOVERNMENTS ARE WEAK RONALD REAGAN UNDERSTOOD INSTINCTIVELY THAT GOVERNMENTS HAD REACHED THE LIMITS OF THEIR CARRYING CAPACITY THUS HIS STRATEGY OF CAPPING GOVERNMENT'S REVENUE TO FORCE TOUGH DECISIONS ABOUT PUBLIC COMMITMENTS WHEN JOHN MAJOR TALKS ABOUT PRIVATIZATION HE MAKES IT SOUND LIKE A GOOD EFFICIENCY SCHEME WHEN MARGARET THATCHER SPOKE ABOUT IT SHE MADE IT SOUND LIKE A WAY TO IMPROVE THE CHARACTER OF THE NATION THE BRITISH PHILOSOPHER SHIRLEY ROBIN LETWIN WHO DIED LAST MONTH ARGUED THAT EVERYTHING MRS THATCHER DID WAS MEANT TO ENCOURAGE THE VIGOROUS VIRTUES THAT LAY DORMANT IN THE BRITISH PEOPLE THEY WERE TO BE UPRIGHT SELFSUFFICIENT ENERGETIC ADVENTUROUS INDEPENDENTMINDED LOYAL TO FRIENDS AND ROBUST AGAINST ENEMIES SHARE OWNERSHIP WAS SUPPOSED TO ENCOURAGE SELFSUFFICIENCY SHE CONCENTRATED HER ATTACKS ON THE INSTITUTIONS SHE FELT HAD WEAKENED THOSE VIRTUESTHE BBC THE COURTS THE SCHOOL BUREAUCRACY NOTE THAT MRS THATCHER'S VIRTUES ARE SECULAR VIRTUES SHE WASN'T WAITING FOR A RELIGIOUS REVIVAL THERE'S NOBODY AMONG THE G7 LEADERSHIP TODAY WHO SO CLOSELY LINKS GOVERNMENT WITH PERSONAL CHARACTER THE ATTRIBUTE DE TOCQUEVILLE FOUND MOST NOTABLE IN THE US THOUGH HE OF COURSE WAS TALKING ABOUT THE STURDY UNDERPINNING OF RELIGIOUS PRACTICE BUT PERHAPS SOMEONE WILL COME ALONG AND SAY THAT WELFARE ENTITLEMENTS FOR THE MIDDLE CLASS ARE NOT JUST UNAFFORDABLE WHICH IS EYEGLAZING BUT BAD FOR THE CHARACTER OF THOSE WHO RECEIVE THEM AN ARGUMENT SUCH AS THAT WOULD LIKELY CAUSE A REAL DEBATE ON WELFARE REFORM UNTIL THAT BEGINS PEOPLE WILL TRY TO FLEE THE COLLAPSING STRUCTURE OF THE WELFARE STATE EITHER THROUGH SEPARATIST MOVEMENT AS WE SEE IN ITALY BELGIUM AND ACROSS THE FORMER SOVIET UNION OR ELSE BY SECLUDING THEMSELVES OUT IN THE SUBURBS WITH PRIVATE SECURITY FORCES AND THE LIKE OF COURSE THIS NEED NOT BE MUCH OF THE PUBLIC CLEARLY RECOGNIZES THAT A DYNAMIC WORLD DRIVEN BY TRANSISTORS AND TELECOMMUNICATION HAS MADE THEIR GOVERNMENTS ANTIQUATED EVEN MANY PUBLIC OFFICIALS WILL SAY THE SAME IN PRIVATE MORE PROMISING STILL THE DIFFICULTY ISN'T GLOBAL IN LATIN AMERICA IN A SOUTH KOREA OR TAIWAN IN THE EMERGING DEMOCRACIES OF EASTERN EUROPE AND EVEN IN RUSSIA AND ITS NEWLY INDEPENDENT REPUBLICS ONE FINDS A GENERATION OF POLITICAL LEADERSHIP DETERMINED TO MAXIMIZE THE BENEFITS OF MODERN MARKETS ACCORDINGLY THEY ARE MOVING CONFIDENTLY TO REDUCE THE GOVERNMENT'S NATURAL DRAG ON THIS PROCESS MEANWHILE THE CURRENT CROP OF G7 LEADERS MEETS IN TOKYO THEIR LIVES REDUCED TO BEAN COUNTING THEY ARE WAITING FOR SOMEONE TO EXPLAIN WHAT TO DO AND WHERE TO GO GOVERNMENT HAS FINALLY MET GODOT SEE RELATED LETTER LETTERS TO THE EDITOR WE DIDN'T LIKE HER AND WE'RE NOT WHINERS WSJ JULY 16 1993 SEE RELATED LETTER LETTERS TO THE EDITOR LEADERS AREN'T READING WRITINGS ON THE WALL WSJ AUG 24 1993 9307020045 9307160069 YY93 MM07 YY93 MM08 9308230143 930823 INTERNATIONAL TAIWAN EXPORT CONTRACTS TAIPEI TAIWAN TAIWAN'S EXPORT CONTRACTS IN JULY STOOD AT 714 BILLION US UP 5 FROM THE YEAREARLIER MONTH AND GAINING 21 FROM JUNE THE MINISTRY OF ECONOMIC AFFAIRS REPORTED 9308230142 930823 REVIEW & OUTLOOK EDITORIAL DENG'S NEW CHINA A LINE FROM ONE OF CHINA'S HIPPER RED ANTHEMS RUNS WITHOUT THE COMMUNIST PARTY THERE WOULD BE NO NEW CHINA NOTHING TO ARGUE WITH THERE WE MIGHT ADD AS WELL THAT THE NEW CHINA OWES A GOOD DEAL TO DENG XIAOPING WHO WE ASSUME CELEBRATED HIS 89TH BIRTHDAY YESTERDAY THIS IS AN APPROPRIATE OCCASION TO MUSE BRIEFLY ON THE NEW CHINA HE HAS DONE SO MUCH TO SHAPE IN MR DENG'S NEW CHINA A STUDENT WHO HANGS A BANNER THAT SAYS WE HAVE NOT FORGOTTEN JUNE 4 GETS TO PONDER THIS UPPITY BEHAVIOR IN PRISON FOR THREE YEARS IN MR DENG'S NEW CHINA WHERE UBIQUITOUS SIGNS READ A MORE OPEN CHINA WELCOMES THE 2000 OLYMPICS A LONE FIGURE WHO SAYS CHINA SHOULDN'T HOST THE GAMES IS ARRESTED IN MR DENG'S NEW CHINA BANK OFFICIALS BUY CONDOS WHILE PEASANTS AFTER A YEAR OF BACKBREAKING LABOR GET PAID IN IOUS IN MR DENG'S NEW CHINA TIBETAN NUNS SERVE TIME FOR SHOUTING SLOGANS OUTSIDE A TEMPLE IN LHASA IN MR DENG'S NEW CHINA PAYING FOR THE FOREIGN EDUCATION OF A PARTY OFFICIAL'S CHILD CAN BE PART OF THE PRICE OF DOING BUSINESS IN MR DENG'S NEW CHINA WHEN WORKERS DON'T WANT TO BUY GOVERNMENT BONDS THEIR WORK UNIT SIMPLY DOCKS THEIR SALARY IN MR DENG'S NEW CHINA BIRTH CONTROLLERS HAVE THE RIGHT TO MONITOR EVERY WOMAN'S BODY CYCLE IN MR DENG'S NEW CHINA ABOUT TWOTHIRDS OF THOSE WHO ARE ALLOWED TO STUDY IN FOREIGN COUNTRIES WILL SPURN THEIR HOMELAND AND MAKE NEW LIVES ABROAD IN MR DENG'S NEW CHINA TOP CADRES AND MILITARY OFFICERS IN GUANGZHOU CAN SIMPLY PLACE AN ORDER FOR A CAR MAKE STYLE AND COLOR AND KNOW THAT IT WILL BE STOLEN IN HONG KONG AND ON ITS WAY SHORTLY MR DENG CAN TAKE SOME CREDIT FOR HAVING THE GOOD SENSE TO LOOSEN THE LEASH SOMEWHAT ON CHINA'S ENTREPRENEURS WHOSE DRIVE AND ENERGY HAVE ENRICHED THE COUNTRY AND EXPANDED THE BOUNDARIES OF LIBERTY HE HAS AVOIDED MAO'S DEVASTATING HABIT OF PERIODICALLY WREAKING LETHAL CHAOS THROUGH SUCH CRUELTIES AS THE GREAT LEAP FORWARD OR THE CULTURAL REVOLUTION THE RANGE OF IDEAS THAT CAN BE EXPRESSED IN MR DENG'S CHINA IS FAR GREATER THAN IN MAO'S BUT BEHIND THE GLITZY FACADE OF GOLF COURSES FIVESTAR HOTELS AND KARAOKE VERSIONS OF THE EAST IS RED THE NEW CHINA IS BUILT VERY MUCH ON THE FOUNDATIONS THAT MAO LAID MR DENG REMEMBER WAS A PARTY GENERALSECRETARY DURING THE ANTIRIGHTIST MOVEMENT OF 1957 AND PRESIDED OVER THE DESTRUCTION OF A GENERATION OF CHINESE INTELLECTUALS LIKE MAO HE COULD BE A RUTHLESS POLITICAL OPERATOR SHEDDING TWO HANDPICKED SUCCESSORS HU YAOBANG AND ZHAO ZIYANG WHEN THE POLITICAL HEAT ROSE THERE IS NO SIGN AT ALL THAT MR DENG HAS EVER QUESTIONED THE DIVINE RIGHT OF THE GLORIOUS AND CORRECT CHINESE COMMUNIST PARTY TO RULE CHINA ALONE CORRUPTION AND POLITICAL ABUSE BECOME INEVITABLE IN THIS CONTEXT IN MR DENG'S NEW CHINA MUCH MORE THAN IN THE OLD IMPERIAL CHINA THOUGH LESS THAN IN MAO'S THE AUTHORITY OF THE STATE IS BREATHTAKING THERE ARE A LACK OF INTERMEDIATE INSTITUTIONS TO MODERATE THE STATE'S POWER OVER SOCIETY AND ULTIMATELY OVER THE INDIVIDUAL WHEN THE STATE IS THE ONLY AUTHORITY THERE ARE NO CHECKS AND BALANCES ABUSE OF AUTHORITY BECOMES INGRAINED WHO RULES THE RULERS THAT'S A DANGEROUS QUESTION IN THE NEW CHINA AS WEI JINGSHENG IN HIS 14TH YEAR OF IMPRISONMENT KNOWS ALL TOO WELL IT WAS MR DENG WHO CLOSED THE PRISON DOOR ON MR WEI IN 1979 FOR ESPOUSING THE HETERODOX VIEW THAT CHINA NEEDED A FIFTH MODERNIZATION DEMOCRACY WHEN MR DENG DIES HE WILL HAVE FAILED IN ONE OF THE MOST ELEMENTARY TASKS OF LEADERSHIP ENSURING A PEACEFUL TRANSITION IT IS EXTRAORDINARY THAT A MURMUR FROM THIS UNELECTED ANCIENT SUCH AS HIS WHISPERED EXHORTATION IN JANUARY TO SEIZE THE OPPORTUNITY CAN STILL CARRY THE FORCE OF LAW FOR MORE THAN ONEFIFTH OF THE WORLD'S PEOPLE A WORD FROM HIM COULD ALSO RELEASE WEI JINGSHENG BUT IN DENG XIAOPING'S NEW CHINA ACTS OF MERCY AREN'T ON THE OFFICIAL AGENDA 9308230141 930823 CHICAGO MERC SEAT IS SOLD CHICAGO A SEAT ON THE CHICAGO MERCANTILE EXCHANGE WAS SOLD FOR 595000 EQUAL TO THE PREVIOUS SALE LAST TUESDAY THE EXCHANGE SAID SEATS ARE CURRENTLY QUOTED AT 575000 BID 800000 OFFERED THE RECORD PRICE FOR A SEAT ON THE EXCHANGE IS 620000 SET JAN 9308230140 930823 JB HUNT SELLS NOTES LOWELL ARK JB HUNT TRANSPORT SERVICES INC SAID IT SOLD 100 MILLION OF 10YEAR 6 1/4 SENIOR NOTES THE TRUCKING COMPANY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE REFINANCING OF DEBT AND CAPITAL EXPENDITURES 9308230139 930823 INTERNATIONAL TURKISH TRADE DEFICIT ANKARA TURKEY TURKEY'S FOREIGN TRADE DEFICIT WIDENED TO 150 BILLION IN JUNE FROM 906 MILLION A YEAR EARLIER THE STATE INSTITUTE OF STATISTICS SAID FOR THE FIRST SIX MONTHS THE DEFICIT SWELLED TO 655 BILLION FROM 357 BILLION A YEAR EARLIER THE INSTITUTE SAID 9308230138 930823 WHAT'S NEWS WORLDWIDE BOSNIA'S PRESIDENT PREDICTED A COMPROMISE PEACE PLAN WOULD BE DEFEATED HOURS AFTER RETURNING FROM TALKS WITH SERB AND CROAT REPRESENTATIVES IN GENEVA IZETBEGOVIC SAID THE PLAN HAMMERED OUT UNDER INTERNATIONAL PRESSURE WOULD FORCE MUSLIMS TO GIVE UP TOO MUCH TERRITORY AND CREATE A LANDLOCKED RUMP REPUBLIC HE SAID A SPECIAL ASSEMBLY INCLUDING MEMBERS OF BOSNIA'S PARLIAMENT AND INTELLIGENTSIA WILL VOTE ON THE PLAN THIS WEEK MEANWHILE CROATS CONTINUED TO BLOCK UN AID TRUCKS FROM ENTERING A MUSLIM ENCLAVE IN MOSTAR DOCTORS IN MOSTAR URGED THE UN TO EVACUATE THE WOUNDED IF MEDICAL SUPPLIES CANNOT BE DELIVERED TO THE ENCLAVE WHERE 55000 MUSLIMS ARE BESIEGED AN EXPLOSION IN SOMALIA INJURED SIX US SOLDIERS SLIGHTLY IN AN ATTACK ON A CONVOY FERRYING TROOPS THROUGH MOGADISHU TO A USBOUND SHIP US OFFICIALS BLAMED FOLLOWERS OF FUGITIVE WARLORD AIDID ON SATURDAY A ONEWEEK BAN ON COMMERCIAL FLIGHTS AT MOGADISHU'S AIRPORT WAS IMPOSED BECAUSE OF FEARS OF ATTACKS BY AIDID'S FORCES LEFTIST GUNMEN IN NICARAGUA SEIZED NINE JOURNALISTS COVERING A HOSTAGETAKING IN MANAGUA IN WHICH VICE PRESIDENT GODOY AND OTHER OFFICIALS WERE BEING HELD THE GUNMEN TOOK THE OFFICIALS HOSTAGE IN RETALIATION FOR THE SEIZURE LAST WEEK OF AT LEAST 38 GOVERNMENT OFFICIALS BY RIGHTIST GUERRILLAS WHO LAST NIGHT RELEASED 20 OF THEIR CAPTIVES RUSSIA SAID IT HAS BROKEN OFF TALKS ON WITHDRAWING ITS REMAINING TROOPS FROM LITHUANIA A FOREIGN MINISTRY STATEMENT ALSO WARNED LITHUANIA IT FACED A SWIFT AND DECISIVE RESPONSE IF RUSSIANS WITHIN THE BALTIC REPUBLIC ARE THREATENED ABOUT 2500 RUSSIAN TROOPS REMAIN IN LITHUANIA OUT OF SOME 30000 ORIGINALLY STATIONED THERE A HIGH RUSSIAN OFFICIAL QUIT AFTER A PRESIDENTIAL PANEL ACCUSED HIM OF MISMANAGEMENT OFFICIALS SAID THE RESIGNATION OF SERGEI GLAZYEV FOREIGN ECONOMIC RELATIONS MINISTER COMES AMID A WIDENING CORRUPTION SCANDAL THAT HAS LED TO THE DISMISSALS OF THE SECURITY AND DEPUTY INTERIOR MINISTERS A GUNMAN IN SOUTH AFRICA KILLED 12 PEOPLE AND WOUNDED 20 AFTER OPENING FIRE ON A BLACK BURIAL SOCIETY PLANNING THE FUNERAL OF A MAN KILLED LAST MONTH THE LATEST KILLINGS TOOK PLACE NEAR A FOUNDRY OUTSIDE JOHANNESBURG SEPARATELY ZULU LEADER BUTHELEZI SAID SATURDAY HE WOULD NOT TAKE PART IN ELECTIONS FOR AN ASSEMBLY TO WRITE A NEW CONSTITUTION A JAPANESE EXCHANGE STUDENT DIED FOLLOWING AN ATTACK NEAR A COMMUTER TRAIN STATION OUTSIDE SAN FRANCISCO MASAKAZU KURIYAMA 25 DIED SATURDAY AFTER BEING SHOT TWICE IN THE HEAD FRIDAY POLICE HAVE NO SUSPECTS OR MOTIVE THE CASE SIMILAR TO AN INCIDENT IN LOUISIANA LAST YEAR WAS BEING FOLLOWED CLOSELY BY JAPANESE MEDIA FISHERMEN IN ALASKA LIFTED A BLOCKADE OF OIL TANKER LANES LEADING TO THE TRANSALASKA PIPELINE'S LOADING COMPLEX AFTER A THREEDAY PROTEST THE PROTEST WAS MOUNTED TO DRAMATIZE THEIR EXASPERATION OVER THE LINGERING EFFECTS OF THE EXXON VALDEZ OIL SPILL AND EXXON'S ALLEGED FAILURE TO DEAL WITH THEM A BIG AIDS DRUG TEST WAS SCUTTLED AFTER A PHARMACEUTICALS MAKER MICROGENESYS REFUSED TO DONATE ITS VACCINE TO A MULTIYEAR TEST OF SEVERAL AIDS VACCINES BY THE PENTAGON AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE PENTAGON WILL INSTEAD CONDUCT A ONEYEAR TEST OF ONLY MICROGENESYS' VACCINE NASA ENGINEERS LOST CONTACT WITH THE MARS OBSERVER SPACECRAFT SHORTLY BEFORE IT WAS TO ENTER ORBIT AROUND THE PLANET AFTER AN 11MONTH 450 MILLIONMILE JOURNEY THE ENGINEERS WERE RADIOING COMPUTER COMMANDS EVERY 20 MINUTES IN AN EFFORT TO SAVE THE 980 MILLION MISSION CONTACT WAS LOST SATURDAY NIGHT DURING A BRAKING PROCEDURE BRAZIL'S PRESIDENT FRANCO CALLED AN EMERGENCY MEETING TODAY OF THE COUNTRY'S TOP LAWENFORCEMENT OFFICIALS TO DISCUSS WAYS OF PROTECTING THE YANOMAMI TRIBE FOLLOWING A MASSACRE LAST WEEK OFFICIALS WHO VISITED THE SITE SAID 73 TRIBE MEMBERS MAY HAVE BEEN KILLED IN AN ATTACK BY GOLD MINERS IN A REMOTE AREA NEAR VENEZUELA A FORMER ALGERIAN PREMIER WAS KILLED IN AN AMBUSH THERE WAS NO IMMEDIATE CLAIM OF RESPONSIBILITY IN THE SLAYING SATURDAY OF THE EXOFFICIAL KASDI MERBAH SEPARATELY FOREIGN MINISTER REDHA MALEK WAS NAMED PRIME MINISTER SUCCEEDING BELAID ABDESSLAM WHO WAS OUSTED WITHOUT EXPLANATION BY THE MILITARYBACKED RULING COUNCIL 9308230137 930823 US TO LAUNCH ANOTHER INQUIRY OF MICROSOFT WHILE FTC DROPS ITS PROBE JUSTICE DEPARTMENT SETS ANTITRUST INVESTIGATION BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL THE JUSTICE DEPARTMENT SAID IT IS MOVING AHEAD WITH AN ANTITRUST INVESTIGATION OF SOFTWARE GIANT MICROSOFT CORP EVEN AS ANOTHER FEDERAL AGENCY DROPPED ITS INQUIRY OF THE COMPANY WITHOUT FILING ANY CHARGES THE DEPARTMENT'S ANTITRUST DIVISION SAID LATE FRIDAY IT WILL LAUNCH A FORMAL INVESTIGATION INTO COMPLAINTS BY OTHER SOFTWARE COMPANIES THAT MICROSOFT HAS USED ITS SIZE MARKETING PRACTICES AND PRODUCT DESIGN TO SQUELCH COMPETITION MICROSOFT BASED IN REDMOND WASH HAS DENIED ANY WRONGDOING THE JUSTICE DEPARTMENT'S ACTION IS UNUSUAL BECAUSE IT FOLLOWED A DECISION ALSO ANNOUNCED FRIDAY BY A DEADLOCKED FEDERAL TRADE COMMISSION TO CLOSE ITS SEPARATE INVESTIGATION OF MICROSOFT WITHOUT TAKING ANY ACTION AGAINST THE COMPANY THE TWO AGENCIES SHARE RESPONSIBILITY FOR FEDERAL ANTITRUST ENFORCEMENT BUT ONE RARELY INVESTIGATES A COMPANY AFTER THE OTHER HAS DONE SO THE JUSTICE DEPARTMENT'S AGGRESSIVE STANCE IS SEEN IN PART AS REFLECTING THE AMBITIONS OF ITS NEW ANTITRUST CHIEF ANNE BINGAMAN SHE HAS SAID THAT SHE PLANS TO STEP UP ENFORCEMENT OF ANTITRUST LAWS IN GENERAL AND THAT ATTORNEY GENERAL JANET RENO BACKS THE IDEA A JUSTICE DEPARTMENT SPOKESWOMAN DECLINED TO SAY WHICH OF MICROSOFT'S BUSINESS PRACTICES DEPARTMENT INVESTIGATORS PLANNED TO EXAMINE SHE DID SAY THE DEPARTMENT WOULD TRY TO AVOID DUPLICATION OF WORK ALREADY DONE BY THE FTC THE FTC EARLIER THIS MONTH HAD TRANSFERRED TO THE JUSTICE DEPARTMENT MOUNTAINS OF DOCUMENTS GATHERED DURING A THREEYEAR INQUIRY OF MICROSOFT WE ARE GOING TO LOOK AT EVERYTHING FTC INVESTIGATORS HAVE THE SPOKESWOMAN SAID SHE ADDED THAT THE NEW INVESTIGATION WILL BE CONDUCTED AS PROMPTLY AS POSSIBLE BUT DECLINED TO ELABORATE A MICROSOFT SPOKESWOMAN SAID THE COMPANY IS GRATIFIED THAT THE FTC HAS CLOSED ITS INVESTIGATION AND WILL COOPERATE FULLY WITH THE JUSTICE DEPARTMENT SHE REFUSED TO COMMENT FURTHER THE JUSTICE DEPARTMENT UNLIKE THE FTC CAN BRING CRIMINAL CHARGES NO ONE HAS INDICATED HOWEVER THAT SUCH CHARGES WOULD BE BROUGHT AGAINST MICROSOFT A DOCUMENT RELEASED FRIDAY BY THE FTC CONFIRMED PUBLICLY SOME OF THE PRACTICES THAT STAFF LAWYERS AT THE AGENCY BELIEVED WARRANTED SANCTIONS THE DOCUMENT REVEALED THAT FTC CHAIRWOMAN JANET STEIGER HAD TWICE THIS YEAR MOVED THAT THE STAFF FILE COMPLAINTS AGAINST THE COMPANY BUT HAD FAILED BOTH TIMES TO GET A MAJORITY OF THE FIVEMEMBER COMMISSION TO ENDORSE SUCH ACTION THE PANEL SPLIT 22 WITH ONE MEMBER RECUSING HIMSELF FROM THE CASE MS STEIGER IN FEBRUARY WANTED THE COMMISSION TO SEEK A COURT ORDER BANNING MICROSOFT FROM ENGAGING IN EXCLUSIONARY TYING PRACTICES AN APPARENT REFERENCE TO ACCUSATIONS THAT THE COMPANY HAS USED THE POPULARITY OF ITS MSDOS DISK OPERATING SYSTEM TO FORCE COMPUTEREQUIPMENT MANUFACTURERS TO PURCHASE MICROSOFT PRODUCTS ONE CLAIM LODGED BY RIVAL NOVELL INC IS THAT MICROSOFT'S LICENSING PRACTICES MAY UNFAIRLY KEEP COMPETITORS OUT OF THE MARKET FOR PC OPERATING SYSTEMS ALMOST ALL PC MAKERS SELL THEIR MACHINES WITH MICROSOFT'S MSDOS OPERATING SYSTEM ALREADY LOADED BUT NOVELL WOULD LIKE TO CRACK THAT MARKET BY GETTING MANUFACTURERS TO LOAD NOVELL'S CLONE OF THAT SYSTEM DRDOS INSTEAD MICROSOFT MAKES IT UNATTRACTIVE FOR PC MAKERS TO USE DRDOS NOVELL HAS ARGUED BECAUSE MICROSOFT CHARGES LOWER ROYALTY PAYMENTS TO THOSE THAT AGREE TO TAKE OUT A LICENSE TO LOAD MSDOS ON ALL THEIR MACHINES INSTEAD OF PAYING A MACHINEBYMACHINE ROYALTY MS STEIGER ALSO SOUGHT A COURT ORDER PROHIBITING MICROSOFT FROM THE DELIBERATE CREATION OF NONFUNCTIONAL INCOMPATIBILITIES BETWEEN ITS OWN AND COMPETITORS' OPERATING SYSTEM SOFTWARE IN ORDER TO HARM COMPETITORS NOVELL HAS ACCUSED MICROSOFT OF DESIGNING ITS WINDOWS 31 PRODUCT SO THAT IT COULDN'T BE USED WITH NOVELL'S DRDOS OPERATING SYSTEM MICROSOFT SAYS IT HASN'T DONE ANYTHING DELIBERATE TO MAKE WINDOWS INCOMPATIBLE WITH DRDOS BUT STRESSES THAT IT ISN'T OBLIGATED TO WRITE ITS SOFTWARE TO RUN ON RIVALS' OPERATING SYSTEMS BEFORE THE FTC DECISION WAS ANNOUNCED FRIDAY MICROSOFT SHARES CLOSED 2 HIGHER AT 7625 IN NATIONAL OVERTHECOUNTER TRADING STEPHEN KREIDER YODER CONTRIBUTED TO THIS ARTICLE 9308230136 930823 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN STUART L SCHWERIN WAS NAMED VICE PRESIDENT INVESTOR RELATIONS AND FINANCIAL ADMINISTRATION HE SUCCEEDS RAYMOND E LIGUORI WHO HAS JOINED SALOMON BROTHERS MR SCHWERIN HAS BEEN ASSISTANT CONTROLLER BUDGETS PLANS AND ANALYSIS FOR THIS TELECOMMUNICATIONS COMPANY 9308230135 930823 GM AIDE FEARS JAPAN SELLS AUTOS BELOW COST HERE BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT A SENIOR GENERAL MOTORS CORP EXECUTIVE SAID HE HAS MAJOR CONCERNS THAT JAPANESE AUTO MAKERS ARE SELLING VEHICLES IN THE US BELOW COST AND SUGGESTED JAPANESE AUTO MAKERS NEED TO RAISE PRICES MORE TO REFLECT THE INCREASED VALUE OF THE YEN THE GM OFFICIAL EXECUTIVE VICE PRESIDENT HARRY PEARCE ALSO SAID IN AN INTERVIEW THAT GM IS REASSESSING MANY OF THE ASSET SALES PROPOSED LAST YEAR BECAUSE WE HAD NO OTHER SOURCE OF CASH AS GM CONSIDERS DIVESTITURES INCLUDING THE POSSIBLE SALE OF A STAKE IN ITS BIG ELECTRONIC DATA SYSTEMS CORP UNIT THEY ARE ONLY GOING TO HAPPEN WHEN THERE'S A GOOD STRONG BUSINESS CASE HE SAID MR PEARCE'S COMMENTS ON JAPANESE PRICING COMING THREE DAYS AFTER SIMILAR REMARKS BY TWO SENIOR FORD OFFICIALS SUGGEST DETROIT'S BIG THREE AREN'T CONTENT WITH RECENT PRICE INCREASES WHICH HAVE PUT AVERAGE PRICES FOR JAPANESE CARS ABOUT 2000 OR MORE ABOVE RIVAL BIG THREE MODELS JAPANESE AUTO MAKERS HAVE SEEN THEIR SHARE OF THE US MARKET SLUMP THIS YEAR AS PRICES HAVE INCREASED BUT MR PEARCE SUGGESTED THAT GM IS READY TO JOIN FORD IN RATTLING THE DUMPING SABRE A TURNABOUT FROM EARLIER THIS YEAR WHEN GM PRESIDENT JOHN F SMITH JR OPTED OUT OF A PLAN TO FILE DUMPING CHARGES AGAINST A BROAD RANGE OF JAPANESE VEHICLES WE WOULD HOPE THE JAPANESE PARTICULARLY AS THE TRADE DEFICIT GROWS WOULD BE VERY SENSITIVE IN HOW THEIR PRODUCTS SHOULD BE PRICED APPROPRIATELY MR PEARCE SAID WE'LL BE MONITORING THAT IF LITIGATION IS APPROPRIATE WE'LL PURSUE IT A SPOKESMAN FOR TOYOTA MOTOR CORP'S US SALES ARM DISMISSED THE SUGGESTION THAT JAPANESE MANUFACTURERS ARE SELLING VEHICLES BELOW HOMEMARKET COSTS THE BIG THREE ARE BEGINNING TO SOUND LIKE A BROKEN RECORD HE SAID WHENEVER THEY WANT TO RAKE IN MORE PROFITS THEY CHARGE JAPANESE MANUFACTURERS WITH DUMPING 9308230134 930823 WHO'S NEWS NATIONAL PUBLIC RADIO NATIONAL PUBLIC RADIO WASHINGTON DELANO E LEWIS 54 YEARS OLD WAS NAMED PRESIDENT OF THIS RADIO NETWORK SUCCEEDING DOUGLAS J BENNET 55 WHO LEFT TO BECOME ASSISTANT SECRETARY OF STATE FOR INTERNATIONAL ORGANIZATIONS MR LEWIS HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHESAPEAKE & POTOMAC TELEPHONE CO 9308230133 930823 ABREAST OF THE MARKET US SHARES COULD SUFFER FROM FOREIGNSTOCK LURE BY WALL STREET JOURNAL STAFF REPORTERS ANITA RAGHAVAN IN NEW YORK AND MICHAEL R SESIT IN LONDON WILL THE ALLURE OF FOREIGN STOCK MARKETS WIND UP HURTING US STOCKS EVEN AS THE US MARKET CLIMBS TO SUCCESSIVE NEW HIGHS MORE AND MORE AMERICANS ARE PACKING UP THEIR DOLLARS AND SHIPPING THEM OVERSEAS THEY'RE FOLLOWING THE ADVICE OF SOME OF WALL STREET'S BEST AND BRIGHTEST ADVISERS WITH THE BULL MARKET IN US STOCKS MORE THAN A DECADE OLD RESPECTED INVESTMENT STRATEGISTS SUCH AS MORGAN STANLEY'S BARTON BIGGS ARE TELLING CLIENTS THAT THE BIG FUTURE STOCK GAINS WILL LIE ABROAD AS A RESULT A MOUNTAIN OF MONEY HAS BEEN SLOSHING INTO FOREIGN STOCK FUNDS INTERNATIONAL STOCK FUNDS CAPTURED 105 OF THE 605 BILLION FLOODING INTO ALL STOCK MUTUAL FUNDS DURING THE FIRST HALF OF THIS YEAR UP FROM 75 A YEAR EARLIER ACCORDING TO THE INVESTMENT COMPANY INSTITUTE AND SINCE THE SHAKEUP OF THE EUROPEAN EXCHANGE RATE MECHANISM LAST MONTH MONEY MANAGERS SAY THE TREND TOWARD INVESTING ABROAD PARTICULARLY IN EUROPE HAS ACCELERATED AT VANGUARD MUTUAL FUND GROUP THE NATION'S SECOND LARGEST MUTUAL FUND COMPANY THE INTERNATIONAL GROWTH PORTFOLIO IS ALREADY SURPASSING THE FIRM'S DOMESTIC STOCK FUNDS AS THE TOPSELLING VEHICLE THIS MONTH SHOULD THE BOOMING SALES CONTINUE IT WILL MARK THE FIRST TIME SINCE APRIL 1988 THAT A FOREIGN STOCK FUND IS A BESTSELLER AT VANGUARD IT'S QUITE EXTRAORDINARY SAYS BRIAN MATTES VICE PRESIDENT AT VALLEY FORGE PABASED VANGUARD ACTUALLY IT'S VERY EXTRAORDINARY RICHARD FOULKES EXECUTIVE VICE PRESIDENT OF LONDONBASED SCHRODER CAPITAL MANAGEMENT INTERNATIONAL WHICH MANAGES THE FUND SAYS MONEY STARTED FLOODING IN ALMOST EXACTLY AT THE SAME TIME AS THE ERM STARTED HAVING ITS PROBLEMS LAST MONTH CLEARLY THE PROSPECT FOR LOWER INTEREST RATES' SPURRING ECONOMIC ACTIVITY IN EUROPE HAS CAPTURED THE IMAGINATION OF AMERICAN INVESTORS SO TOO HAS THE PERFORMANCE OF OVERSEAS MARKETS WHILE THE DOW JONES INDUSTRIAL AVERAGE HAS GAINED 95 SO FAR THIS YEAR US INVESTORS IN JAPAN HAVE GAINED 59 MEASURED IN DOLLARS 18 IN GERMANY 12 IN FRANCE AND 35 IN HONG KONG A LARGER NUMBER OF US INVESTORS ARE RECOGNIZING THAT THE RATES OF RETURN IN SELECTED OVERSEAS STOCK MARKETS IN PARTICULAR EMERGING MARKETS ARE CONSIDERABLY HIGHER THAN THOSE AVAILABLE IN THE US SAYS KENNETH LOPIAN VICE PRESIDENT IN CHARGE OF THE AMERICAN DEPOSITORY RECEIPTS GROUP AT BANK OF NEW YORK HE SAYS THAT AMERICANS' APPETITE FOR FOREIGN STOCKS IS ALSO BEING FED BY THE INCREASE IN USBASED RESEARCH ON FOREIGN COMPANIES THE INCREASE IN SALES AND TRADING OF NONUS EQUITIES AND THE GROWING LISTING OF FOREIGN COMPANIES ON US EXCHANGES WHOSE EQUITY TRADES IN THE FORM OF ADRS WHILE ANALYSTS AND INVESTMENT MANAGERS GENERALLY APPLAUD THE NEW SOPHISTICATION AMONG US INVESTORS OTHERS WORRY THAT AT SOME POINT THE US MARKET WILL SUFFER AS A RESULT OF THE MONEY FLOWING ABROAD JOHN R LEGAT HEAD OF EUROPEAN STOCKS AT GT MANAGEMENT PLC IN LONDON SAYS THE PURCHASES OF FOREIGN STOCKS AND AMERICAN DEPOSITORY RECEIPTS WHICH REPRESENT UNDERLYING SHARES OF STOCK IN FOREIGN COMPANIES COULD SIPHON MEANINGFUL AMOUNTS OF MONEY AWAY FROM THE US MARKET IF THERE IS A SHIFT IN ASSETS FROM THE US TO EUROPE IT'S GOT TO COME OUT OF BANK DEPOSITS SHORTTERM MONEY MARKET FUNDS OR A MUTUAL FUND INVESTING IN US STOCKS OR BONDS DIRECTLY SAYS MR LEGAT ON A RELATIVE BASIS THE US MARKET IS LIKELY TO UNDERPERFORM AS MONEY GOES FROM ONE MARKET TO THE NEXT INDEED AT BALTIMOREBASED T ROWE PRICE ASSOCIATES ONLY 7 OF THE MONEY THAT HAS POURED INTO THE FIRM'S STOCK FUNDS SO FAR THIS MONTH HAS GONE TO DOMESTIC STOCK POOLS THAT'S A MARKED CHANGE FROM APRIL WHEN MORE THAN A THIRD OF THE STOCK ASSETS T ROWE PRICE TOOK IN WENT TO US EQUITY FUNDS BUT MANY US MONEY MANAGERS PROFESS LITTLE WORRY ABOUT THE AFFECTION FOR FOREIGN MARKETS WE ARE TALKING ABOUT DOLLARS ON THE MARGIN GOING INTO INTERNATIONAL FUNDS NOT A MASSIVE OUTFLOW SAYS GEORGE MURNAGHAN VICE PRESIDENT OF ROWE PRICE FLEMING WHICH MANAGES T ROWE PRICE'S INTERNATIONAL FUNDS SO IS IT A RISK TO THE US MARKET PROBABLY NOT ONE OF THE REASONS STOCK STRATEGISTS ARE SO SANGUINE ABOUT THE RECENT EXODUS OVERSEAS IS THAT MONEY CONTINUES TO FLOOD INTO THE US STOCK MARKET AT A TORRID PACE IS IT FAIR TO SAY THAT SOME OF THIS MONEY IS LEAKING OUTSIDE AND KEEPING OUR MARKET FROM GOING HIGHER ASKS KEVIN BANNON CHIEF INVESTMENT OFFICER AT BANK OF NEW YORK SURE BUT IS IT GOING TO BE SO MUCH OF A FLOW TO MAKE THE US MARKET UNATTRACTIVE I DON'T THINK SO AND SCHRODER CAPITAL MANAGEMENT'S MR FOULKES NOTES THAT EVEN AS INTERNATIONAL STOCKS HAVE HIT NEW HIGHS OVER THE PAST FEW WEEKS SO TOO HAS THE DOW JONES INDUSTRIAL AVERAGE THAT WOULDN'T SUGGEST THAT MONEY IS ROTATING OUTSIDE OF THE US MARKET BUT RATHER THAT AVAILABLE NEW MONEY IS BEING FOCUSED ON INTERNATIONAL STOCKS RATHER THAN US STOCKS HE SAYS WHAT'S MORE AMERICANS WHO ARE INCREASINGLY INTERESTED IN FOREIGN ECONOMIES ARE FINDING THAT THEY NEEDN'T SEND MONEY ABROAD TO OWN SHARES OF FOREIGN COMPANIES FOR INSTANCE SINCE NEARLY 50 OF THE PROFITS IN THE STANDARD & POOR'S 500STOCK INDEX COME FROM OVERSEAS MR BANNON SAYS MANY US INVESTORS ARE BUYING STOCKS OF BIG US COMPANIES THAT DERIVE A SIGNIFICANT AMOUNT OF THEIR PROFITS FROM ECONOMIC GROWTH ABROAD ALSO TRADING IN ADRS ON US STOCK EXCHANGES AND NASDAQ SOARED TO A RECORD 84 BILLION IN THE FIRST HALF UP 28 FROM A YEAR EARLIER ACCORDING TO BANK OF NEW YORK MARK BREEDON A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT CORP IN LONDON SEES THIS INVESTMENT BENEFITING ALL STOCK MARKETS THE MORE PEOPLE ARE PREPARED TO OWN AND INVEST IN RISK CAPITAL WHEREVER IT MAY BE IS A POSITIVE THING HE SAYS THE WIDER THE INDIVIDUAL'S CHOICE THE MORE POTENTIAL HE HAS FOR INCREASING HIS OVERALL ALLOCATION TO EQUITIES BANK OF NEW YORK'S MR LOPIAN NOTES THAT MOST US FUND MANAGERS HAVE 4 TO 7 IN FOREIGN STOCKS BUT OVER THE NEXT 10 YEARS THESE MANAGERS ARE EXPECTED TO BOOST THEIR FOREIGN STOCKS TO 10 TO 12 OF THEIR PORTFOLIOS STILL HE SAYS YOU ARE TALKING ABOUT A PIE THAT IS GROWING SO THERE IS PLENTY OF MONEY TO ALLOCATE TO THE US MARKET A LASTMINUTE BURST OF COMPUTERGUIDED PROGRAM BUYING SENT THE DOW JONES INDUSTRIAL AVERAGE TO ITS FOURTH STRAIGHT RECORD RECOVERING FROM A 15POINT LOSS THE INDUSTRIAL AVERAGE CLIMBED 335 POINTS TO 361548 THE STANDARD & POOR'S 500STOCK INDEX SLIPPED 027 TO 45616 RETREATING FROM ITS ALLTIME HIGH AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 002 POINT TO 25325 FOR THE WEEK THE INDUSTRIAL AVERAGE AND THE S&P EACH ROSE 13 AND THE COMPOSITE INDEX GAINED 14 ANALYSTS SAID THAT THE RALLY IN DRUG FOOD AND TOBACCO STOCKS WHICH HAD HELPED PUSH THE S&P TO RECORD GROUND LAST WEEK STALLED PHILIP MORRIS SLIPPED 3/8 TO 50 1/4 MERCK LOST 3/8 TO 32 3/4 GENERAL MILLS 1 1/2 TO 61 1/2 PEPSICO 1 TO 39 1/8 AND CAMPBELL SOUP 7/8 TO 38 1/4 CHRYSLER WAS THE SECOND MOSTACTIVE STOCK ON THE BIG BOARD SKIDDING 1 5/8 TO 41 SALOMON BROTHERS REPORTEDLY LOWERED ITS EARNINGS ESTIMATES ON THE CAR MAKER FISHERPRICE SOARED 9 1/8 TO 33 THE TOY COMPANY AGREED TO BE ACQUIRED BY MATTEL IN A STOCK SWAP VALUED AT 1 BILLION EACH FISHERPRICE SHARE WILL BE EXCHANGED FOR 1275 SHARES OF MATTEL WHICH JUMPED 1 1/2 TO 27 1/8 DR PEPPER/SEVENUP LEAPED 1 7/8 TO 19 CADBURY SCHWEPPES SAID IT AGREED TO BUY PRUDENTIAL INSURANCE CO OF AMERICA'S STAKE IN THE SOFTDRINK COMPANY THE 2318 MILLION PURCHASE WILL BOOST CADBURY'S STAKE IN DR PEPPER/SEVENUP TO 259 FROM 57 GENEVA STEEL CLASS A SHARES RALLIED 1 3/8 TO 12 3/8 ON THURSDAY MERRILL LYNCH ANALYST JORDAN ESTRA MADE POSITIVE COMMENTS ABOUT THE COMPANY WORLDCORP PLUNGED 1 1/8 TO 4 1/8 NATWEST SECURITIES REDUCED ITS RATING ON THE STOCK TO HOLD FROM BUY DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9308230132 930823 WHO'S NEWS NEW LINE TURNER BROADCASTING DEAL PUTS LOWPROFILE PRESIDENT IN SPOTLIGHT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN HOLLYWOOD WHERE BEING SEEN AND WELLKNOWN ARE ESSENTIAL ELEMENTS OF THE ENTERTAINMENT INDUSTRY ETHOS NEW LINE CINEMA CORP PRESIDENT MICHAEL LYNNE IS UNCHARACTERISTICALLY LOW PROFILE HE IS NO BIG WHEEL AROUND TOWN A LOT OF PEOPLE DON'T EVEN KNOW WHO HE IS SAYS PETER HOFFMAN FORMER CHIEF EXECUTIVE OFFICER OF CAROLCO PICTURES INC AND AN ADMIRER OF MR LYNNE BUT LABORING IN OBSCURITY PAID OFF BIG FOR MR LYNNE AND HIS FELLOW SHAREHOLDERS INCLUDING CHAIRMAN AND FOUNDER ROBERT SHAYE LAST WEEK IN A DEAL THAT SOME OBSERVERS CONTEND WAS OVERPRICED TURNER BROADCASTING SYSTEM INC AGREED TO ACQUIRE THE INDEPENDENT STUDIO FOR TURNER STOCK VALUED AT AS MUCH AS 500 MILLION PLUS ASSUMPTION OF 60 MILLION OF DEBT NOW IN A RARE MOVE FOR A COMPANY WHERE THE FOUNDER AND TOP EXECUTIVE REMAINS AT THE HELM NEW LINE ITSELF HAS DRAGGED ITS NO 2 OFFICER MR LYNNE FROM THE SHADOWS FOR THE LION'S SHARE OF THE CREDIT ON THE BIGGEST EVENT IN THE COMPANY'S HISTORY ANY KUDOS HE GARNERS ARE WELLDESERVED ACCORDING TO EXECUTIVES INVOLVED IN THE DEAL AND THE FEW OTHER PLAYERS IN HOLLYWOOD AND WALL STREET WHO ARE FAMILIAR WITH THE 51YEAROLD MR LYNNE MR LYNNE IS THE FINANCIAL ENGINEER WHO ENABLED THE COMPANY TO SURVIVE IN AN ERA WHEN THE INDUSTRY COST OF PRODUCTION AND MARKETING WENT THROUGH THE ROOF SAID HAROLD L VOGEL MERRILL LYNCH & CO'S ENTERTAINMENT INDUSTRY ANALYST BECAUSE OF HIM YOU HAVE A MUCH STRONGER COMPANY GOING INTO TURNER THAN YOU OTHERWISE WOULD HAVE HAD INDEED SOME OBSERVERS ON WALL STREET CONTEND THAT NEW LINE ONE OF THE FEW INDEPENDENT STUDIOS TO NOT ONLY SURVIVE BUT THRIVE WAS BARRELING DOWN THE ROAD TOWARD DISASTER IN 1990 WHEN MR LYNNE JOINED WHILE DOZENS OF OTHER INDEPENDENTS STARTED UP AND QUICKLY CRASHED NEW LINE MANAGED TO CARVE OUT A NICHE FOR ITSELF IN LOWBUDGET BMOVIES COMPILING A 200FILM LIBRARY SINCE IT WAS ESTABLISHED BY MR SHAYE IN 1967 BUT AS THE 1980S ENDED CAPPING A DECADE OF RISING COST MR SHAYE HAD BECOME DISTRACTED AND FALLEN ILL THE STOCK PRICE PLUNGED TO ABOUT 5 A SHARE OFF ABOUT 50 FROM ITS HIGH OF ABOUT 10 MR LYNNE WHO WAS THEN A NEW LINE DIRECTOR WAS APPOINTED TO THE NO 2 POST HE'S DOWNTOEARTH SOLID AND A GOOD BALANCE TO SHAYE SAYS AN ACQUAINTANCE OF BOTH MEN SHAYE BROUGHT HIM IN BECAUSE HE NEEDED SOMEBODY TO BUILD THE COMPANY ONLY THREE YEARS LATER MR TURNER IS AGREEING TO PAY BETWEEN 21 AND 22 A SHARE IN STOCK FOR NEW LINE MR LYNNE BEGAN THE EXPANSION ALMOST FROM THE DAY OF HIS APPOINTMENT FOR EXAMPLE HE QUICKLY CHAMPIONED AN 8 MILLION INVESTMENT IN RHI ENTERTAINMENT THRUSTING NEW LINE INTO TELEVISION PRODUCTION TODAY ITS 37 STAKE IS WORTH ABOUT 40 MILLION AND RHI'S FUTURE APPEARS BRIGHT IT PRODUCES MOVIES OF THE WEEK AND MINISERIES FOR BROADCAST NETWORKS AND CABLE TV AND HAS A LIBRARY OF MORE THAN 800 HOURS OF PROGRAMMING CURRENTLY RHI HAS ORDERS FOR ABOUT 27 HOURS OF SOCALLED LONGFORM PROGRAMMING FOR DELIVERY THIS YEAR INCLUDING A SIXHOUR SEQUEL TO THE HIT MINISERIES LONESOME DOVE AND SCARLETT AN EIGHTHOUR TELEVISION PROGRAM BASED ON THE BESTSELLING SEQUEL TO GONE WITH THE WIND SHORTLY AFTER HIS APPOINTMENT MR LYNNE ALSO GRABBED THE NORTH AMERICAN DISTRIBUTION RIGHTS FOR THE HIT TEENAGE MUTANT NINJA TURTLES IN 1991 MR LYNNE BEGAN TO IMPLEMENT A STRATEGY FOR NEW LINE TO ACQUIRE FILM RIGHTS AND QUICKLY SCORED BIG NEW LINE BOUGHT THE RIGHTS TO DISTRIBUTE CERTAIN FILMS PRODUCED BY CASTLE ROCK ENTERTAINMENT ON VIDEO IN THE US AND OVERSEAS NEW LINE LAUNCHED ITS HOME VIDEO LABEL THAT YEAR WITH A CASTLE ROCK FILM THE HIT MISERY AND ONE OF THE TOPSELLING VIDEOS OF 1991 WAS ANOTHER CASTLE ROCK HIT CITY SLICKERS WITH ACCESS TO SUCH HITS THE NEW LINE HOME VIDEO DIVISION POSTED REVENUE OF MORE THAN 100 MILLION IN ITS FIRST SIX MONTHS OF OPERATIONS ROBERT SHAYE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW LINE CINEMA CORP DIDN'T FALL ILL IN 1990 A COMPANY SPOKESMAN SAID BASED ON ACCOUNTS OF INDIVIDUALS A WHO'S NEWS ARTICLE MONDAY ASSERTED THAT HE BECAME ILL THAT YEAR ALSO MR SHAYE SECURED NORTH AMERICAN DISTRIBUTION RIGHTS TO THE TEENAGE MUTANT NINJA TURTLES MOVIE WHILE THE COMPANY'S PRESIDENT MICHAEL LYNNE OBTAINED SIMILAR RIGHTS TO THE SEQUEL THE ARTICLE INCORRECTLY CREDITED THE PRESIDENT WITH SECURING THE RIGHTS TO THE ORIGINAL MOVIE 9308230131 930823 BUSINESS BRIEF SHELL CANADA REVIEWS ALL OF ITS OPERATIONS IN BID TO BOOST PROFIT CALGARY ALBERTA SHELL CANADA LTD SAID IT PLACED ALL OF ITS OPERATIONS UNDER REVIEW IN AN ATTEMPT TO BOOST MEAGER PRETAX PROFITS THE PETROLEUM COMPANY WHICH IS 78HELD BY ROYAL DUTCH/SHELL GROUP SAID IT HOPES TO ADD 250 MILLION CANADIAN DOLLARS US190 MILLION TO ITS PRETAX PROFIT BY THE END OF NEXT YEAR AS A FIRST STEP TOWARD THE GOAL IT SAID ITS BUSINESS UNITS ARE IDENTIFYING COSTREDUCTION INITIATIVES AND AREAS OF REVENUE ENHANCEMENT THE COMPANY WHICH IS ONE OF CANADA'S THREE LARGEST INTEGRATED PETROLEUM COMPANIES LAST YEAR REPORTED PRETAX EARNINGS OF C65 MILLION ON C45 BILLION IN REVENUE THE RESULTS INCLUDED A C110 MILLION GAIN ON DIVESTMENTS THAT MORE THAN OFFSET C96 MILLION OF RESTRUCTURING CHARGES SHELL CANADA SAID ALL OF ITS OPERATIONS ARE TO BE REVIEWED EVEN THOUGH THE FINANCIAL PERFORMANCE OF THE MAIN OPERATING DIVISIONS LAST YEAR WAS FAR FROM EVEN FOR 1992 IT REPORTED C178 MILLION IN OPERATING EARNINGS ON C781 MILLION IN REVENUE FROM OIL GAS AND SULFUR PRODUCTION COMPARED WITH AN OPERATING LOSS OF C7 MILLION ON C35 BILLION IN REVENUE FROM REFINING AND MARKETING PETROLEUM PRODUCTS AND AN OPERATING LOSS OF C1 MILLION ON C575 MILLION IN REVENUE FROM ITS CHEMICALS OPERATIONS A SHELL CANADA SPOKESMAN SAID THAT THE COMPANY IS LIKELY TO COMPLETE ITS INTERNAL REVIEW IN OCTOBER AS PART ITS ANNUAL BUDGET PROCESS AND THAT IT WILL PROBABLY START IMPLEMENTING COSTCUTTING MEASURES BY YEAR END HE SAID IT'S EXTREMELY LIKELY THAT SHELL WILL LAY OFF STAFF AS A RESULT OF CANCELING OR DEFERRING PROJECTS THE SPOKESMAN SAID THAT NO STAFF REDUCTION TARGETS HAVE BEEN SET AND THAT THE COMPANY HASN'T DETERMINED WHICH AREAS OF ITS OPERATIONS WILL BEAR THE BRUNT OF THE CUTS 9308230130 930823 INTERNATIONAL GERMANY'S VEHICLE REGISTRATIONS FLENSBURG GERMANY GERMAN NEWMOTOR VEHICLE REGISTRATIONS FELL 81 IN JULY FROM JUNE THE FEDERAL MOTOR VEHICLES OFFICE SAID IN THE FIRST SEVEN MONTHS OF THE YEAR THEY WERE DOWN 19 FROM THE SAME PERIOD IN 1992 REGISTRATIONS TOTALED 267233 UNITS IN JULY DOWN 66 FROM JUNE THE OFFICE SAID 9308230129 930823 FIRST TENNESSEE NATIONAL MEMPHIS TENN FIRST TENNESSEE NATIONAL CORP SAID ITS BANK SUBSIDIARY AGREED TO BUY MARYLAND NATIONAL MORTGAGE CORP FOR 1156 MILLION MARYLAND NATIONAL MORTGAGE IS THE MORTGAGE BANKING UNIT OF MNC FINANCIAL INC A BALTIMORE BANK HOLDING COMPANY FIRST TENNESSEE IS A MEMPHIS BANK HOLDING COMPANY 9308230128 930823 INTERNATIONAL FRENCH DOMESTIC PRODUCT PARIS FRANCE'S FIRSTQUARTER GROSS DOMESTIC PRODUCT CONTRACTED AT A REVISED 09 COMPARED WITH AN EARLIER REPORT OF A 06 CONTRACTION FOR THE QUARTER THE NATIONAL STATISTICS INSTITUTE REPORTED THE DECLINE IN THE FIRST QUARTER OF 1993 IS A WIDENING OF THE GDP CONTRACTION SEEN IN THE LAST QUARTER OF 1992 WHICH WAS 05 IN THE FIRST QUARTER OF 1992 GDP ROSE 1 9308230127 930823 TECHNOLOGY SATCHER NAMED TO HEAD CDC ATLANTA DAVID SATCHER PRESIDENT OF MEHARRY MEDICAL COLLEGE IN NASHVILLE TENN WAS APPOINTED BY HEALTH AND HUMAN SERVICES SECRETARY DONNA E SHALALA TO BE DIRECTOR OF THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA DR SATCHER 52 YEAR OLD BECOMES THE FIRST BLACK TO HEAD THE AGENCY HE SUCCEEDS WILLIAM ROPER WHO WAS ASKED TO RESIGN BY THE CLINTON ADMINISTRATION EARLIER THIS YEAR 9308230126 930823 WHO'S NEWS DOLLAR TIME GROUP INC DOLLAR TIME GROUP INC HOLLYWOOD FLA THE COMPANY SAID MORRIS GOLDMAN HAS RESIGNED AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR WILLIAM F MCCONNELL 51YEAROLD CHAIRMAN WILL ASSUME THE ADDITIONAL POSTS OF PRESIDENT AND CEO THE COMPANY SAID MR GOLDMAN 42 IS LEAVING TO WORK AS AN INDEPENDENT BUYER MR GOLDMAN COULDN'T BE REACHED FOR COMMENT DOLLAR TIME OPERATES RETAIL CLOSEOUT STORES 9308230125 930823 WHO'S NEWS EDIZIONE HOLDING SPA EDIZIONE HOLDING SPA TREVISO ITALY CHARLES L PEIFER 43 WAS NAMED TO THE NEWLY CREATED POSTS OF VICE PRESIDENT OF THE PRINCE SPORTS GROUP INC UNIT AND PRESIDENT OF PRINCE RACQUET SPORTS MR PEIFER WHO HAD BEEN SENIOR VICE PRESIDENT AT CORNING VITRO CORP ALSO WAS ELECTED A DIRECTOR OF PRINCE SPORTS GROUP INCREASING THE BOARD'S SIZE TO EIGHT AND BENETTON SPORTSYSTEM COMMUNICATIONS INCREASING THE BOARD OF THAT UNIT TO SEVEN 9308230124 930823 WHO'S NEWS THIOKOL CORP THIOKOL CORP OGDEN UTAH THREE NEW DIRECTORS WERE ELECTED AT THIS SPACE AND DEFENSE CONTRACTOR L DENNIS KOZLOWSKI 46YEAROLD CHIEF EXECUTIVE OFFICER OF TYCO LABORATORIES INC EXETER NH JAMES S RINGLER 46 CHIEF OPERATING OFFICER OF PREMARK INTERNATIONAL INC DEERFIELD ILL AND DONALD C TRAUSCHT 59 CHIEF EXECUTIVE OFFICER OF BORGWARNER SECURITY CORP CHICAGO THE APPOINTMENTS INCREASE BOARD MEMBERSHIP TO 10 DIRECTORS 9308230123 930823 WHO'S NEWS BLACK WARRIOR WIRELINE CORP BLACK WARRIOR WIRELINE CORP COLUMBUS MISS EUGENE L BUTLER 51 YEARS OLD RESIGNED AS CHIEF EXECUTIVE OFFICER AND TREASURER OF THIS OILWELL SERVICE COMPANY MR BUTLER ALSO CHIEF EXECUTIVE OFFICER AND PRESIDENT OF PETROMINERALS CORP TUSTIN CALIF WILL CONTINUE TO SERVE AS A DIRECTOR THE COMPANY SAID NO SUCCESSOR HAS BEEN NAMED MR BUTLER WAS UNAVAILABLE FOR COMMENT FRIDAY BUT THE COMPANY SAID HE RESIGNED TO CONCENTRATE ON OTHER BUSINESS INTERESTS 9308230122 930823 ANY TESTIMONIALS FOR THE PRODUCT WILL HAVE TO COME ON THE FLY BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL MAKERS OF DISHWASHING DETERGENT OFTEN BOAST OF HOW THEIR SOAPS REMOVE TOUGH GREASE BUT EVEN THEY ACKNOWLEGE THIS CLEANING JOB IS FOR THE BIRDS SPECIFICALLY IT'S FOR THE PELICANS SEAGULLS EGRETS AND GREAT BLUE HERONS OF TAMPA BAY ALL OF THESE ARE SOILED VICTIMS OF AN OIL SPILL AUG 10 WHEN A FREIGHTER AND TWO BARGES COLLIDED THE BIRDS HAVE GLOBS OF BLACK GOO IN THEIR FEATHERS EYES AND INSIDE THEIR STOMACHS THEY ARE VERY STRESSED SAYS LT RIP STALVEY OF FLORIDA'S GAME AND FRESH WATER FISH COMMISSION ENTER PROCTER & GAMBLE CO COLGATEPALMOLIVE CO AND OTHER BIG AND SMALL SOAP MAKERS HOPING THAT WHAT IS GOOD FOR AMERICA'S DISHES WILL BE GOOD FOR ITS BIRDS DELAWARE'S TRISTATE BIRD RESCUE & RESEARCH INC DETERMINED DAWN IS BEST SAYS EILEEN MULLER OF TRISTATE SO P&G GLADLY SHIPPED 30 CASES OF DAWN TO FLORIDA THE COMPANY ALSO SENT ITS SUDS TO ALASKA AFTER THE EXXON VALDEZ OIL SPILL THE FOLKS AT COLGATEPALMOLIVE CONTEND THAT THEIR PALMOLIVE BRAND WORKS JUST FINE EVEN THOUGH IT WASN'T CHOSEN NOBODY'S SAT DOWN AND TESTED IT ON DUCKS HERE BUT IT'S STRONG ENOUGH YOU CAN USE IT ON CARS THE COMPANY SAYS DAWN HAS HELPED CLEAN SOME 225 BIRDS SO FAR HUNDREDS OF COMMUNITY VOLUNTEERS IGNORING THEIR OWN DIRTY DISHES HAVE FLOCKED TO HELP SWAB OIL OUT OF THE EARS MOUTH AND FEATHERS OF THE FOWL IT TAKES HOURS AND A LOT OF SOAP EACH BIRD IS WASHED WITH ABOUT TWO GALLONS OF DISHWASHING LIQUID AND 100 GALLONS OF WATER PLUS EACH BIRD GETS A SHOT OF PEPTOBISMOL ANOTHER P&G BRAND IN ITS MOUTH TO REDUCE VOMITING IN CASE IT INGESTED OIL A LOT HAVE TUMMYACHES AND FEEL QUITE SICK LT STALVEY SAYS ALL SOAP MUST BE REMOVED OR THE BIRD CAN SINK BECAUSE ITS FEATHERS WON'T BE WATERPROOF THE PATIENTS ARE MOVED FROM TUB TO TUB AND DELICATELY SCRUBBED WATER SHOULD BE ABOUT 105 DEGREES FAHRENHEIT A BIRD'S NORMAL BODY TEMPERATURE YOU DEFINITELY DON'T WANT TO SCALD THE BIRD SAYS MS MULLER BUT YOU KNOW THAT IF YOU PUT A GREASY FRYING PAN IN COLD WATER THE OIL WON'T COME OUT THOSE HELPING WITH THE DIRTY JOB MUST WEAR GLOVES BOOTS AND A SPECIAL WHITE SUIT TO PROTECT AGAINST THE CHEMICALS IN THE OIL MOST IMPORTANTLY THROUGHOUT THE PROCESS THE BIRDS MUST NOT BE AGITATED WE PLAY NO LOUD MUSIC AND TALK KINDLY AND SOFTLY TO THEM MS MULLER SAYS REMEMBER THEY SEE US AS A PREDATOR NOT A FRIEND 9308230121 930823 GREENSPAN SAYS NEW WAYS TO LIMIT RISK FROM FINANCIAL MARKETS ARE NEEDED BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL JACKSON HOLE WYO FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN WARNED THAT MODERN FINANCIAL MARKETS EXPOSE NATIONAL ECONOMIES TO SHOCKS FROM NEW AND UNEXPECTED SOURCES AND WITH LITTLE IF ANY LAG AT A CONFERENCE TO CONSIDER THE MONETARY POLICY IMPLICATIONS OF CHANGING GLOBAL FINANCIAL MARKETS MR GREENSPAN SAID CENTRAL BANKS MUST DEVELOP NEW WAYS TO ASSESS AND LIMIT RISK TO THE FINANCIAL SYSTEM IN AN ERA WHEN LARGE VOLUMES OF CAPITAL CAN MOVE QUICKLY AROUND THE WORLD IN RESPONSE TO CHANGES IN INTEREST AND EXCHANGE RATES THESE CHALLENGES ARISE PARTICULARLY IN MARKETS FOR COMPLEX NEW INSTRUMENTS SUCH AS DERIVATIVES MR GREENSPAN SAID SEVERAL BANKS AND BROKERS HAVE CREATED A MULTITRILLIONDOLLAR MARKET IN DERIVATIVES WHICH ARE DESIGNED TO HEDGE THE RISKS OF HOLDING SECURITIES COMMODITIES AND CURRENCIES BY OFFERING CUSTOMERS NEW WAYS TO PROTECT THEMSELVES AGAINST ADVERSE MOVES IN INTEREST OR EXCHANGE RATES THE SIZE AND COMPLEXITY OF THE DERIVATIVES MARKET HAVE CONCERNED REGULATORS ACADEMICS AND MEMBERS OF CONGRESS SO FAR MR GREENSPAN SAID REGULATORS AND TRADERS HAVE MADE CONSIDERABLE PROGRESS IN INCREASING OUR UNDERSTANDING OF DERIVATIVES MARKETS AND THE RISKS THAT THEY INVOLVE AND HE NOTED DERIVATIVES SHOULD ALLOW BANKS TO BETTER MANAGE RISK AND SO SHOULD HELP TO INSULATE THE PAYMENTS SYSTEM FROM FINANCIAL AND REAL SHOCKS BUT THE FED CHIEF TOLD AN AUDIENCE OF CENTRAL BANKERS AND ECONOMISTS FROM AROUND THE WORLD THAT IT IS BY NO MEANS CLEAR WHETHER RECENT FINANCIAL MARKET INNOVATIONS HAVE INCREASED OR DECREASED THE INHERENT STABILITY OF THE FINANCIAL SYSTEM THE FED CHAIRMAN'S COMMENTS CAME DURING THE ANNUAL TWODAY CONFERENCE SPONSORED BY THE KANSAS CITY FEDERAL RESERVE BANK EVENTS AT THE CONFERENCE STIRRED THE CURRENCY MARKETS FRIDAY AFTER A GERMAN CENTRAL BANK OFFICIAL RAISED THE POSSIBILITY OF FURTHER INTEREST RATE CUTS HANS TEITMEYER VICE PRESIDENT OF THE BUNDESBANK VOWED THAT GERMANY WILL CONTINUE ITS ANTIINFLATIONARY MONETARY POLICY BUT THAT DOESN'T RULE OUT THE POSSIBILITY OF FURTHER SMALL STEPS OF INTEREST RATE POLICY PROVIDED THAT THE TREND IN THE MONEY STOCK PERMITS IT AND THAT THE INFLATION RATE AS EXPECTED DECLINES SLIGHTLY IN THE NEAR FUTURE HE SAID IN A STATEMENT SUBMITTED AFTER HE WITHDREW FROM THE CONFERENCE MR TEITMEYER'S STATEMENT ISSUED HERE AND THEN IN FRANKFURT RAISED MARKET SPECULATION THAT THE BUNDESBANK MAY LOWER RATES AS EARLY AS THURSDAY STRENGTHENING THE CASE FOR LOWER RATES WAS MR TEITMEYER'S STATEMENT THAT A MAJOR APPRECIATION OF THE DEUTSCHE MARK WITHIN EUROPE IS UNDESIRABLE IN LIGHT OF GERMAN EXPORTERS' NEED TO REMAIN COMPETITIVE OVER THE PAST YEAR GERMANY'S DETERMINATION TO KEEP RATES HIGH TO FIGHT INFLATION HAS SHATTERED EUROPE'S EFFORTS TO KEEP EXCHANGE RATES OF CONTINENTAL CURRENCIES WITHIN A NARROW BAND THE TURMOIL IN EUROPEAN CURRENCY MARKETS HAS HELPED TO HIGHLIGHT THE LINKAGES BETWEEN EXCHANGE RATES AND DOMESTIC MONETARY POLICY EVEN IN THE US EXCHANGE RATE RESPONSES ARE A CENTRAL PART OF THE TRANSMISSION MECHANISM OF MONETARY POLICY SAID STANLEY FISCHER A PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY PARTICIPANTS AGREED THAT A CREDIBLE DOMESTIC MONETARY POLICY HELPS STABILIZE EXCHANGE RATES MANY COUNTRIES HAVE BEEN ADOPTING SPECIFIC INFLATION GOALS TO GUIDE THEIR MONETARY POLICY SAID DONALD KOHN THE FED'S DIRECTOR OF MONETARY AFFAIRS MR GREENSPAN REFUSED TO COMMENT ON THE US DECISION TO MODERATE THE RISE OF THE YEN TOYOO GYOHTEN CHAIRMAN OF THE BANK OF TOKYO SAID THE US INTERVENTION LAST WEEK TO HOLD DOWN THE YEN SHOWED THAT THE CLINTON ADMINISTRATION UNDERSTANDS THE IMPORTANCE OF WORKING WITH JAPAN TO ADDRESS TRADE AND OTHER SHARED ECONOMIC PROBLEMS 9308230120 930823 INTERNATIONAL POLISH INDUSTRIAL OUTPUT FALLS FRANKFURT POLISH INDUSTRIAL PRODUCTION FELL 86 IN JULY FROM JUNE FOLLOWING A SLOWDOWN IN DEMAND AFTER THE INTRODUCTION OF A VALUEADDED TAX AT THE START OF THE MONTH THE POLISH NEWS AGENCY PAP REPORTED PAP QUOTED ROMAN SAWINSKI VICE PRESIDENT OF THE CENTRAL STATISTICAL OFFICE AS SAYING THAT THE FALL IN OUTPUT WAS MOST MARKED IN INDUSTRIAL SECTORS WHICH HAD STEPPED UP PRODUCTION TO BEAT THE INTRODUCTION OF THE VAT JULY 5 9308230119 930823 ITT UNIT EXTENDS OFFER NEW YORK ITT CORP SAID ITS ITT FINANCIAL CORP UNIT EXTENDED ITS INVITATION TO HOLDERS OF 12 SERIES OF NOTES AND DEBENTURES WITH A 19 BILLION FACE AMOUNT TO SUBMIT OFFERS FOR CASH REDEMPTION ITT SAID IT EXTENDED THE OFFER BECAUSE THE RECENT IMPROVEMENT IN THE BOND MARKET CAUSED IT TO WAIVE CERTAIN CONDITIONS WAIVING THE CONDITIONS TRIGGERED AN AUTOMATIC EXTENSION IN THE OFFERING A SPOKESMAN SAID THE OFFERING EXPIRES ON MIDNIGHT EDT TODAY IT PREVIOUSLY WAS SCHEDULED TO EXPIRE AT MIDNIGHT EDT FRIDAY 9308230118 930823 TECHNOLOGY GENENTECH HALTS CLOT STUDY SOUTH SAN FRANCISCO CALIF GENENTECH INC SAID IT HALTED A STUDY COMPARING THE USE OF CERTAIN DRUGS WITH SURGERY FOR THE TREATMENT OF BLOOD CLOTS IN LIMBS IN THE 300PATIENT STUDY SUBJECTS EITHER UNDERWENT SURGERY OR RECEIVED ONE OF TWO CLOTBUSTING DRUGS GENENTECH'S ACTIVASE TPA DRUG OR ABBOTT LABORATORIES' ABBOKINASE GENENTECH SAID IT STOPPED THE STUDY BECAUSE EARLY RESULTS FAVORED SURGERY AS A TREATMENT 9308230117 930823 MALAYSIAN FIRM BUYS 113 STAKE IN ROASTERS CORP BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIAN ENTREPRENEUR TAN SRI VINCENT TAN CHEE YIOUN HAS TEAMED UP WITH A FORMER KENTUCKY GOVERNOR AND SINGER KENNY ROGERS IN A US FASTFOOD VENTURE ON FRIDAY BERJAYA GROUP BHD THE CORE OF TAN SRI TAN'S BERJAYA STABLE OF COMPANIES ANNOUNCED THAT IT ACQUIRED AN 113 STAKE IN ROASTERS CORP OF FLORIDA FOR US88 MILLION ROASTERS OWNS AND OPERATES A NEWCOMER TO AMERICA'S CROWDED BUT STILLGROWING FASTFOOD INDUSTRY THE KENNY ROGERS ROASTERS RESTAURANT CHAIN WHICH SPECIALIZES IN CHICKENS ROASTED ON A WOODFIRE ROTISSERIE IN ADDITION TO ACQUIRING 11 MILLION ROASTERS SHARES AT 8 EACH BERJAYA SIGNED AN AGREEMENT WITH THE US CONCERN TO SET UP A JOINT VENTURE THAT WILL OWN OPERATE AND FRANCHISE KENNY ROGERS RESTAURANTS THROUGHOUT THE ASIANPACIFIC REGION THE VENTURE TO BE CALLED ROASTERS ASIA PACIFIC HONG KONG LTD WILL BE INCORPORATED IN THE BRITISH COLONY WITH EACH PARTNER HOLDING HALF OF ITS 20 MILLION SHARES OF 1 EACH FAST FOOD IS A NEW BUSINESS FOR THE SPRAWLING BERJAYA CONGLOMERATE WITH INTERESTS RANGING FROM LOTTERIES AND RESORTS TO MANUFACTURING AND FINANCIAL SERVICES BUT BERJAYA'S CHIEF EXECUTIVE OFFICER IS AN OLD FASTFOOD HAND THOUGH PERHAPS NOT A PARTICULARLY EXPERT ONE IN 1980 TAN SRI TAN INCORPORATED GOLDEN ARCHES RESTAURANTS SDN BHD TO ASSUME CONTROL OF THE MCDONALD'S FRANCHISE FOR ALL OF MALAYSIA AFTER BEATING OUT SEVERAL WELLESTABLISHED MALAYSIAN COMPANIES ALSO VYING FOR THE LICENSE IT PROVED TO BE THE BIG BUSINESS BREAK THAT BROUGHT THE 41YEAROLD TYCOON TO THE ATTENTION OF MALAYSIA'S POLITICAL ESTABLISHMENT AND OPENED DOORS TO ACCOMMODATE HIS RAPID CORPORATE EXPANSION SINCE THEN BUT TAN SRI TAN'S RELATIONSHIP WITH MCDONALD'S CORP HASN'T ALWAYS GONE SMOOTHLY RATHER THAN FOCUS ON DEVELOPING THE FRANCHISE IN MALAYSIA AS WAS MCDONALD'S INTENTION WHEN IT AWARDED HIM THE FRANCHISE THE BUSINESSMAN SOON LAUNCHED A DEALMAKING SPREE THAT HAS COME TO TYPIFY HIS AGGRESSIVE CORPORATE STYLE UNDER THE AGREEMENT COMPLETED LAST THURSDAY A BERJAYA GROUP SUBSIDIARY BERJAYA GROUP CAYMAN LTD ACQUIRED 375000 SHARES FROM ROASTERS CHAIRMAN JOHN Y BROWN JR THE FORMER KENTUCKY GOVERNOR WHO ALSO HELPED ESTABLISH THE KENTUCKY FRIED CHICKEN CHAIN IN THE 1960S AND 1970S THE CAYMAN ISLANDS INVESTMENTHOLDING COMPANY BOUGHT AN ADDITIONAL 725000 NEW SHARES IN ROASTERS WHICH MR BROWN STARTED WITH MR ROGERS A LONGTIME FRIEND 9308230116 930823 REPORT WARNS AGAINST PLANS TO REFIT C141 FINDINGS CLOUD LOCKHEED'S PROSPECTS BOOST THOSE OF MCDONNELL BOEING BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL A DRAFT PENTAGON REPORT WARNS AGAINST PURSUING LOCKHEED CORP'S PROPOSED 44 BILLION PLAN TO REBUILD THE NATION'S AILING FLEET OF OLDER C141 AIRLIFTERS THE FINDINGS WHICH ALREADY HAVE BEEN PRESENTED TO SENIOR AIR FORCE OFFICIALS DARKEN LOCKHEED PLANS WHILE BOOSTING PROSPECTS FOR MCDONNELL DOUGLAS CORP'S CONTROVERSIAL C17 TRANSPORT AND FOR BOEING CO'S EFFORT TO SELL THE SERVICE 5 BILLION OF MODIFIED COMMERCIAL JETLINERS TOP AIR FORCE OFFICIALS SAY THE REBUILDING OF C141S OR THE ACQUISITION OF BOEING JETS OR OTHER AIRCRAFT CAN ONLY SUPPLEMENT THE NEED FOR 120 C17S AT A COST OF ABOUT 40 BILLION HOWEVER MANY INDUSTRY MANAGERS BELIEVE DEMAND FOR THE C17 WOULD BE REDUCED IF THE GOVERNMENT OPTS FOR THE OTHER PROGRAMS IN AN ERA OF SCARCE DEFENSE DOLLARS THE STILLUNRELEASED REPORT BY A SCIENTIFIC ADVISORY BOARD COMMITTEE IS SURFACING JUST AS SENIOR PENTAGON OFFICIALS ARE PREPARING TO SETTLE THE FATE OF PLANS TO BUY THE ADVANCED C17 A LONGAWAITED MEETING OF THE DEFENSE ACQUISITION BOARD WHICH WILL SETTLE MUCH OF CLINTON ADMINISTRATION PLANS FOR FUTURE AIRLIFT IS SET FOR FRIDAY AN AIR FORCE SPOKESMAN DECLINED COMMENT ON THE REPORT THE SPOKESMAN COULDN'T CONFIRM OR DENY REPORTS THAT GEN RONALD FOGLEMAN CHIEF OF THE SERVICE'S AIR MOBILITY COMMAND AND OTHERS HAD BEEN BRIEFED ON THE RESULTS AL HANSEN LOCKHEED'S VICE PRESIDENT AIRLIFT PROGRAMS SAID THE COMPANY HAS SOME CONCERNS ABOUT THE VALIDITY OF SOME OF THE CONCLUSIONS IN THE REPORT AND WILL MOVE TO INFLUENCE THE CHANGING OF SOME FINDINGS BEFORE THE REPORT IS MADE FINAL THE REPORT BY A COMMITTEE OF AIRCRAFT EXPERTS ORDERED EARLIER THIS YEAR BY THE DEFENSE DEPARTMENT CONCLUDES THAT THERE IS NO ANALYTICAL OR EMPIRICAL BASIS TO SUPPORT LOCKHEED'S PROPOSAL TO REBUILD 178 OF THE AIRLIFTERS FOR 25 MILLION EACH THE SERVICELIFE EXTENSION PROGRAM IS INTENDED TO ADD 25 YEARS OR MORE OF SERVICE TO THE 25YEAROLD TRANSPORTS LOCKHEED WOULD WARRANTY THE AIRCRAFT THE REPORT SAYS THAT AS THE AIRCRAFT IS INSPECTED MORE PROBLEMS SURFACE AND THERE MAY BE UNKNOWN UNKNOWNS IT ALSO SAYS THAT MATERIALS USED IN THE C141 ARE OBSOLETE ARE SUBJECT TO STRESS CORROSION FROM AGE AND NOT FROM FLIGHT HOURS AND HAVE A LOW RESISTANCE TO FRACTURES IT ALSO CITES CONCERNS THAT IT MAY BE VERY DIFFICULT AND COSTLY TO ACQUIRE SPARE ENGINES AND PARTS FOR FLIGHT SYSTEMS MR HANSEN SAID LOCKHEED HAS TESTED THE AIRCRAFT EXTENSIVELY AND PLANNED ITS PROGRAM CAREFULLY AND HE DISAGREES WITH EACH OF THOSE FINDINGS IT'S A HELL OF A BARGAIN HE SAID OF THE PROGRAM MUCH OF THE NATION'S FLEET OF 249 C141S WHICH UNDERPINS DEPLOYMENT OF TROOPS AND EQUIPMENT IS IN A STEADY STATE OF DECLINE FROM CRACKING AND FATIGUE PROBLEMS IN MAY THE AIR FORCE RESTRICTED LOADS ON THE JETLINERS EARLIER THIS MONTH IT GROUNDED 45 OF THE PLANES AND BARRED 116 OTHERS FROM AERIAL REFUELING ANOTHER 88 OF THE TRANSPORTS ARE RESTRICTED TO CARRYING 74 OF LOAD LIMITS GEN FOGLEMAN SAID IN MAY THAT ANOTHER LOCKHEED PROPOSAL TO RESTART PRODUCTION OF LARGER C5 AIRLIFTERS DOESN'T STRIKE HIM AS ONE THAT MAKES MUCH SENSE HE SAID THEN THAT REBUILDING C141S COULD PROVE ATTRACTIVE AS COULD BOEING'S PROPOSAL TO SELL THE AIR FORCE 33 MODIFIED 747 JUMBO JETS OR 58 WIDEBODY 767 AIRLINERS IN ANY CASE HE SAID THOSE PROGRAMS CAN ONLY SUPPLEMENT THE NEED FOR THE 120 C17S AS PROSPECTS BRIGHTEN FOR CONDITIONAL APPROVAL TO PROCEED WITH C17 PRODUCTION THE AIRPLANE STILL MUST BATTLE PERCEPTIONS STEMMING FROM ITS LONG HISTORY OF COST OVERRUNS AND DEVELOPMENT PROBLEMS THE INDUSTRY TRADE JOURNAL DEFENSE WEEK REPORTS IN TODAY'S EDITION THAT NEW OFFICIAL AIR FORCE ESTIMATES OF THE COST FOR EARLY DEVELOPMENT AND PRODUCTION NOW STAND AT ALMOST 813 BILLION OR 143 BILLION MORE THAN THE 67 BILLION PROJECTED WHEN THE FIXEDPRICE CONTRACT WAS AWARDED IN 1985 MCDONNELL DOUGLAS HAS MAINTAINED THE OVERRUN IS LIMITED TO 11 BILLION 9308230115 930823 CREDIT RATINGS AMERICAN ELECTRIC POWER CO OF COLUMBUS OHIO HAD RATINGS RAISED BY STANDARD & POOR'S CORP ON 11 BILLION IN SENIOR SECURED AND UNSECURED DEBT OF COLUMBUS SOUTHERN POWER CO A UNIT OF THE COMPANY THE RATING COMPANY SAID THE UPGRADES REFLECTED IMPROVING FUNDAMENTALS BECAUSE OF THE FAVORABLE IMPACT OF A 1992 RATE CASE ON CASH FLOW STANDARD & POOR'S UPGRADED COLUMBUS SOUTHERN'S SENIOR SECURED DEBT TO TRIPLEBPLUS FROM TRIPLEB AND ITS SENIOR UNSECURED DEBT TO TRIPLEB FROM TRIPLEBMINUS 9308230113 930823 DON'T REIN IN DEA COWBOYS IN A DRUG SHUFFLE BY JAMES Q WILSON BEFORE PRESIDENT CLINTON DECIDES WHETHER TO RECOMMEND TO CONGRESS THE ABSORPTION OF THE DRUG ENFORCEMENT ADMINISTRATION INTO THE FBI HE SHOULD REFLECT ON THE LESSONS OF PRIOR EFFORTS TO REORGANIZE OUR DRUGCONTROL AGENCIES I CAN SUGGEST A FEW SUCH LESSONS BECAUSE I WAS PART OF THOSE EFFORTS I WAS MARGINALLY INVOLVED IN THE 1968 DECISION TO CREATE THE OLD BUREAU OF NARCOTICS AND DANGEROUS DRUGS AND MORE CENTRALLY INVOLVED IN THE 1973 DECISION TO MERGE BNDD AND PARTS OF THE CUSTOMS SERVICE INTO A NEW AGENCY DEA THE ARGUMENTS MADE THEN SOUNDED MUCH LIKE THE ARGUMENTS ONE NOW HEARS FROM THE FBI AND MEMBERS OF VICE PRESIDENT GORE'S PROJECT ON REINVENTING GOVERNMENT ELIMINATE DUPLICATION END BUREAUCRATIC TURF WARS AND IMPROVE COOPERATION ONE NEW ARGUMENT HAS BEEN ADDED THE BROAD CRIMINAL JURISDICTION OF THE FBI MAKES IT BETTER ABLE TO ATTACK ENTERPRISES THAT ENGAGE IN A VARIETY OF CRIMINAL ACTIVITIES THAT INCLUDE DRUG TRAFFICKING THESE ARGUMENTS REFLECT A TOPDOWN VIEW OF BUREAUCRACY ONE THAT NEGLECTS THE REALITIES OF THE DAILY WORK OF THE AGENTS THE IMPORTANCE OF A HAVING A DISTINCTIVE ORGANIZATIONAL CULTURE THAT WILL GUIDE THOSE AGENTS AND THE INEVITABILITY OF INTERAGENCY CONFLICT THAT NO AMOUNT OF REORGANIZATION CAN PREVENT IN 1968 AND AGAIN IN 1973 NO ONE MADE A DETAILED STUDY OF WHAT NARCOTICS AGENTS REALLY DO AND HOW IF AT ALL THAT BEHAVIOR MIGHT USEFULLY BE CHANGED THE CREATORS OF DEA MYSELF INCLUDED HAD SOME HUNCHES WE THOUGHT THAT BNDD HAD RELIED TOO MUCH ON UNDERCOVER BUY AND BUST TACTICS THAT PRODUCED MANY ARRESTS OF LOWLEVEL DEALERS AND FEW ARRESTS OF BIG SHOTS WITHIN A FEW YEARS DEA WAS BEING CRITICIZED FOR EXACTLY THE SAME REASON WE ALSO THOUGHT THAT BNDD AND CUSTOMS WERE TOO COMPETITIVE SOMETIMES WE WERE TOLD THEIR INTENSE RIVALRY LED TO MEMBERS OF ONE AGENCY PLACING MEMBERS OF THE OTHER UNDER SURVEILLANCE AFTER DEA WAS CREATED THE RIVALRY CONTINUED FOR SEVERAL YEARS EVEN THOUGH MANY CUSTOMS AGENTS HAD BEEN TRANSFERRED TO DEA I DRAW TWO LESSONS FROM THIS FIRST UNDERCOVER BUY AND BUST WORK IS ESSENTIAL TO MAKING NARCOTICS CASES ONE HOPES THAT THE BUYS WILL BE DONE IN WAYS THAT LEAD TO BUSTING BIG DEALERS BUT THE BUYS THEMSELVES CANNOT BE AVOIDED THIS STREET WORK DETERMINES THE OPERATING CULTURE OF THE AGENCY IT IS A VERY DIFFERENT CULTURE FROM THAT WHICH SUSTAINS THE FBI WHICH IS WHY SOME FBI AGENTS CALL THEIR DEA COUNTERPARTS COWBOYS SECOND INTERAGENCY RIVALRY IS INEVITABLE BECAUSE INTERCEPTING THE FLOW OF NARCOTICS REQUIRES GATHERING INTELLIGENCE THIS INVOLVES THE CIA PROTECTING THE BORDERS THIS INVOLVES CUSTOMS IMMIGRATION AND NATURALIZATION AND THE BORDER PATROL SEIZING ASSETS THIS INVOLVES THE INTERNAL REVENUE SERVICE COOPERATING WITH LOCAL LAW ENFORCEMENT THIS INVOLVES STATE AND CITY POLICE AGENCIES AND CHECKING ON GUN TRAFFICKING THAT IS TIED TO DRUG SMUGGLING THIS INVOLVES THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS DEA HAS HAD ITS PROBLEMS WITH ALL OF THESE AGENCIES THOUGH COOPERATION IS GREATER TODAY THAN IT WAS IN 1973 BUT SO HAS THE FBI ONE CANNOT CHANGE THE SECOND FACT AND OUGHT NOT CHANGE THE FIRST LAW ENFORCEMENT IS DIFFICULT AND OFTEN DANGEROUS WORK MUCH OF IT DONE OUT OF THE SIGHT OF AGENCY SUPERVISORS HAVING A STRONG AND DISTINCTIVE CULTURE HELPS GUIDE THAT WORK ENHANCE MORALE AND MINIMIZE DEVIANCE EVERY THOUGHTFUL CORPORATE EXECUTIVE KNOWS THE IMPORTANCE OF ORGANIZATIONAL CULTURE GOVERNMENT REFORMERS OFTEN ACT AS IF THEY DO NOT THERE IS TOO MUCH AT STAKE HERE FOR IMPROVISATION ONLY DRUG DEALERS BENEFIT FROM THESE PERIODIC RESHUFFLINGS OF ORGANIZATIONAL CHARTS BASED ON OUTSIDER HUNCHES AS TO WHAT IS EFFICIENT IF THE PRESIDENT WANTS A SERIOUS LOOK AT THIS PROBLEM HE OUGHT TO INITIATE A CAREFUL LONGTERM STREETLEVEL INQUIRY CONDUCTED BY DISINTERESTED PARTIES INTO HOW WE AND OTHER COUNTRIES MANAGE THIS PROBLEM MR WILSON A PROFESSOR AT UCLA WAS CHAIRMAN OF THE NATIONAL ADVISORY COUNCIL ON DRUG ABUSE PREVENTION IN 197273 AND HAS CONSULTED FOR THE DEA AND FBI HIS NEW BOOK IS THE MORAL SENSE FREE PRESS 9308230112 930823 COMEX'S BOARD APPROVES MERC'S TERMS OF MERGER BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOARD OF NEW YORK'S COMMODITY EXCHANGE APPROVED MERGER TERMS OFFERED BY THE LARGER NEW YORK MERCANTILE EXCHANGE SETTING THE STAGE FOR A VOTE LATE THIS YEAR BY MEMBERS OF THE TWO BIGGEST NEW YORK FUTURES EXCHANGES ON THE PROPOSED CONSOLIDATION A MERGER WHICH HAS BEEN UNDER DISCUSSION SINCE APRIL REQUIRES THE APPROVAL OF TWOTHIRDS OF THE VOTING MEMBERSHIP OF BOTH EXCHANGES AND WOULD BE SUBJECT TO REVIEW BY THE COMMODITY FUTURES TRADING COMMISSION THE NEW YORK MERC THE WORLD'S LARGEST ENERGYFUTURES EXCHANGE IS OFFERING TO DISTRIBUTE 50 MILLION TO THE MEMBERSHIP OF COMEX THE WORLD'S BIGGEST PRECIOUSMETAL FUTURES EXCHANGE AN INITIAL 30 MILLION WOULD COME FROM THE LIQUIDATION OF 15 MILLION IN THE COMEX TREASURY AND A DIRECT 15 MILLION PAYMENT FROM NYMEX'S COFFERS THE REMAINING 20 MILLION WOULD BE DISTRIBUTED IN EQUAL PAYMENTS OF 5 MILLION PLUS INTEREST IN EACH OF THE NEXT FOUR YEARS COMEX SAID THE GOAL OF THE COMEX BOARD WAS TO GET THE BEST POSSIBLE TERMS TO PRESENT TO THE MEMBERSHIP SAID ALAN HANSON SPOKESMAN FOR COMEX HE NOTED THAT WHEN PREVIOUS TALKS BETWEEN NYMEX AND COMEX HAD BROKEN DOWN IN EARLY 1991 MEMBERS HAD EXPRESSED DISAPPOINTMENT THAT THEY HADN'T BEEN ABLE TO DEBATE THE MERITS OF CONSOLIDATION EARLIER THIS YEAR THE THENSTRUGGLING COMEX RECEIVED A TAKEOVER PROPOSAL FROM THE CHICAGO BOARD OF TRADE BUT THAT PROPOSAL WAS WITHDRAWN BEFORE A MEMBERSHIP VOTE WHEN IT BECAME CLEAR THAT THE TERMS WERE DEEMED INSUFFICIENT BY SOME COMEX MEMBERS THE RECENT RALLY IN PRECIOUSMETALS PRICES HAS INCREASED THE VALUE OF A SEAT ON COMEX TO AN AVERAGE LEVEL OF ABOUT 80000 FROM ABOUT 40000 EARLIER THIS YEAR IT ALSO HAS GIVEN COMEX MEMBERS CONFIDENCE THAT THEY CAN NEGOTIATE A MERGER ON TERMS MORE TO THEIR LIKING IT REMAINS TO BE SEEN HOWEVER WHETHER MEMBERS OF THE MORESUCCESSFUL MERCANTILE EXCHANGE ARE WILLING TO APPROVE A CONSOLIDATION THAT WILL COST A SUBSTANTIAL AMOUNT OF MONEY AND MAY DILUTE THE ENERGY EXCHANGE'S FOCUS THE MERGER WOULDN'T ALLOW MEMBERS OF ONE EXCHANGE TO TRADE THE MOST LUCRATIVE PRODUCTS OF THE OTHER EXCHANGE BUT IT DOES PROVIDE FOR MUTUAL ACCESS TO SOME NEW PRODUCTS WITH GREATER RESTRICTIONS PLACED ON COMEX TRADERS 9308230111 930823 MARKETING BY ELEENA DE LISSER TO BUILD BRAND LOYALTY SOME COMPANIES ARE PUMPING OUT GLORIFIED SALES BROCHURES THEN CHARGING FOR THEM CONSUMER PRODUCT COMPANIES ARE PUBLISHING A SLICK NEW BREED OF MAGAZINE PACKED WITH PRODUCT INFORMATION USING A MORE READABLE FORMAT THAT'S LESS INTRUSIVE THAN OLDFASHIONED ADS THE MAGAZINES ENTICE READERS WITH NEW PRODUCTS AND CONSUMER TIPS AND ADVICE SONY STYLE A BRANDLOYALTY MAGAZINE FROM SONY'S UNIT SONY ELECTRONICS DEBUTED WITH 500000 COPIES LAST SPRING AT A COST OF 495 AN ISSUE PLUS 150 FOR SHIPPING AND HANDLING THE 304PAGE TOME OFFERED THROUGH ADS IN MAGAZINES SUCH AS ENTERTAINMENT WEEKLY CONTAINS ARTICLES ABOUT DIGITAL ANSWERING MACHINES PORTABLE STEREOS AND MOBILE VIDEO SYSTEMSNATURALLY SONY PRODUCTS ONE HEADLINE ABOUT A MINI DISC PLAYER WALK ON THE WILD SIDE NINTENDO POWER PUBLISHED BY NINTENDO'S US UNIT CONTAINS GAME REVIEWS PLAYING TIPS LISTINGS OF HIGHSCORING PLAYERS AND A BEVY OF COUPONS AND OTHER PERKS THE OUTGROWTH OF A NEWSLETTER IT COSTS 18 A YEAR WHICH HELPS COVER MARKETING AND DISTRIBUTION COSTS SAYS GAIL TILDEN ITS EDITOR NINTENDO POWER SUBSCRIBERS FULLY ONE MILLION STRONG HAVE BEEN MORE DEVOTED BUYERS THAN OTHER CUSTOMERS ABOUT 80 OF THEM HAVE UPGRADED TO THE TWOYEAROLD SUPER NINTENDO ENTERTAINMENT SYSTEM THE ONE WITH ALL THE LATEST BELLS AND WHISTLES THAT COMPARES WITH ONLY 25 TO 30 OF NINTENDO'S TOTAL CUSTOMER BASE THE COMPANY SAYS THE SUBSCRIPTION PRICES OF THESE MAGAZINES CAN'T BE APPLIED TO FUTURE PURCHASES BUT SONY INCLUDES COUPONS IN SONY STYLE VALUED BETWEEN 50 AND 75 THAT CAN BE USED FOR DISCOUNTS ON ENTERTAINMENT PRODUCTS RICHARD BARLOW PRESIDENT OF FREQUENCY MARKETING AN OHIO CONSULTING FIRM SAYS THAT CHARGING FOR MAGAZINES CREATES A PERCEIVED VALUE FOR THE COMPANIES' BRANDS GIVING IT AWAY FOR FREE WOULD SUGGEST THE PRODUCT ISN'T WORTH ANYTHING RETAILERS RUSH TO JOIN FORCES WITH BANK CREDIT CARDS KROGER THE CINCINNATIBASED GROCERY CHAIN IS INTRODUCING A MASTERCARD IN ITS TEXAS AND LOUISIANA MARKETS HYVEE FOOD STORES A 218STORE CHAIN BASED IN CHARITON IOWA ALSO ISSUES ITS OWN MASTERCARD AND NORDSTROM THE SEATTLEBASED DEPARTMENTSTORE CHAIN WILL ISSUE A VISA CARD THROUGH ITS AFFILIATE BANK IN COLORADO NEXT YEAR WITH CARD USAGE INCREASING RETAILERS AND GROCERY STORES WANT TO GET A BIGGER PIECE OF THE ACTION LOW INTEREST RATES ARE PROMPTING MORE CONSUMERS TO VIEW BANK CARDS AS A PIECE OF CASH SAYS JOHN WALGAMOTT PRESIDENT OF NORDSTROM NATIONAL CREDIT BANK RETAILERS ALSO ARE INTRODUCING THE COBRANDED BANK CARDS TO CAPTURE SALES AND CREDITTRANSACTION PROFITS THAT USED TO GO TO OTHER BANK CARDS DOWN THE ROAD THEY HOPE TO USE TRANSACTION STATISTICS FROM THEIR STORES TO TAILOR PROMOTIONS BETTER AT HYVEE IT HELPS TO TIE THAT CUSTOMER MORE TO THE STORE AND POSSIBLY SPEND MORE SAYS JAMES VIGARS PRESIDENT OF NATIONAL BANK & TRUST THE BANK OWNED BY HYVEE THE RETAILERS ALSO ARE ADDING PERKS TO THE CARDS FOR EXAMPLE KROGER MASTERCARD HOLDERS WILL RECEIVE AN ANNUAL 1 TO 2 REBATE AND THERE'S NO YEARLY FEE ON THE CARD THE COBRANDED CARDS ARE EXPECTED TO BE MORE COMPETITIVE THAN TYPICAL RETAIL CARDS MANY BANKS FOR INSTANCE HAVE LOWERED INTEREST RATES ON CREDIT CARDS SOME TO AS LOW AS 7 BUT RETAIL CARDS HAVE MAINTAINED STUBBORNLY HIGH RATES AVERAGING 203 SAYS ROBERT MCKINLEY PRESIDENT OF RAM RESEARCH A CARD RESEARCH FIRM PARTLY AS A RESULT THE TYPICAL US HOUSEHOLD OWES 1600 ON BANK CARDS BUT ONLY 500 TO 600 ON RETAIL CARDS ACCORDING TO RAM WITH A LIGHTWEIGHT MARKETING BUDGET SPORTS DRINK 10K GETS A CROSSCOUNTRY RUN FOR ITS MONEY SUNTORY WATER GROUP A DIVISION OF JAPAN'S SUNTORY INTERNATIONAL IS SPONSORING A COASTTOCOAST ROAD TRIP BY FOUR COLLEGE STUDENTS WHO HAVE DREAMED OF VISITING 28 MAJOR LEAGUE BASEBALL PARKS TO SEE 28 GAMES IN 28 DAYS SUNTORY THE MAKER OF 10K GOT THE IDEA AFTER LEARNING THE YOUNG MEN NEEDED SPONSORS TO SUBSIDIZE THEIR 17339MILE ODYSSEY THEY BEGAN JULY 29 AND FINISH WEDNESDAY IN THE 1 BILLION SPORTSDRINK ARENA 10K RUNS A VERY DISTANT SECOND TO QUAKER OATS' GATORADE WHICH HAS A LOCK ON ABOUT 90 OF THE MARKET SEVERAL OTHER SPORTSDRINK BRANDS ALSO HAVE ARRIVED ON THE SCENE INCLUDING PEPSICO'S ALL SPORT AND COCACOLA'S POWERADE SUNTORY RECENTLY DECIDED TO AIM ITS 10K AT A YOUNGER AUDIENCE CHILDREN AGED SIX TO 12 BY SPONSORING THE COLLEGE STUDENTS SUNTORY HOPES TO REACH THOSE PRETEENS WHO IT FIGURES ARE ASPIRATIONAL LOOKING TO EMULATE THEIR OLDER COUNTERPARTS FOR A NOT VERY HEFTY 10000 SPONSORSHIP FEE THE YOUNG MEN WEAR 10K TSHIRTS AND CAPS DRIVE IN A VAN WITH A 10K LOGO AND ARE SUPPOSED TO MENTION 10K AT EVERY STOP BECAUSE THE TRIP ALSO IS A FUNDRAISER FOR CHARITY THE GROUP HAS BEEN INTERVIEWED BY LOCAL TV AND RADIO STATIONS AND NEWSPAPERS WHEN YOU GET IN FRONT OF THE NEWS MEDIA IN 28 MAJOR CITIES AROUND THE COUNTRY THAT'S REALLY ALMOST NATIONAL EXPOSURE SAYS JAMES S STEVENS SUNTORY PRESIDENT TO BUY THAT WOULD BE RATHER EXPENSIVE CALL IT MIAMI NICE WPLG THE ABC AFFILIATE IN MIAMI HAS PUT TOGETHER A BRIEF VIDEO THAT BEGINS BY SPOTLIGHTING MIAMI ATTRACTIONS AND THEN FOCUSES ON SAFETY TIPS FOR TOURISTS SEVERAL OF WHOM HAVE BEEN VICTIMIZED IN PUBLICIZED INCIDENTS RECENTLY THE VIDEO WILL AIR ON INTERNATIONAL FLIGHTS INTO MIAMI AIRPORT TERMINALS RENTALCAR AGENCIES AND HOTEL ROOMS BEGINNING IN SEPTEMBER MEGACARDS OF FAIRFIELD IOWA HAS CREATED A SET OF BASEBALL CARDS HIGHLIGHTING THE ACHIEVEMENTS OF MAJOR LEAGUE BASEBALL PLAYERS WITH MENTAL AND PHYSICAL DISABILITIES THE 14CARD SERIES IS ENTITLED BEATING THE ODDS 9308230110 930823 TOYOTA NISSAN SALES AND OUTPUT IN JAPAN DECLINED LAST MONTH SPECIAL TO THE WALL STREET JOURNAL TOKYO DOMESTIC PRODUCTION AND SALES AT TOYOTA MOTOR CORP AND NISSAN MOTOR CO JAPAN'S TWO BIGGEST VEHICLE MAKERS CONTINUED THEIR DOWNTURN IN JULY AS THE NATION'S SLUGGISH ECONOMY KEPT COOLING PERSONAL AND CORPORATE DEMAND ACCORDING TO THEIR MONTHLY REPORTS TOYOTA BUILT 262685 CARS AND 59843 COMMERCIAL VEHICLES IN JAPAN LAST MONTH THAT WAS DOWN 15 AND 17 RESPECTIVELY FROM A YEAR EARLIER NISSAN'S DOMESTIC PRODUCTION WAS 140629 CARS DOWN 98 FROM THE YEAR BEFORE AND 28860 COMMERCIAL VEHICLES DOWN 18 DOMESTIC SALES LAST MONTH TOTALED 142727 CARS FOR TOYOTA DOWN 11 FROM THE YEAR BEFORE AND 60303 COMMERCIAL VEHICLES DOWN 91 NISSAN'S DOMESTIC SALES TOTALED 89249 CARS DOWN 10 AND 30853 COMMERCIAL VEHICLES UP 01 THE DOMESTIC MARKET REMAINS COMPLETELY COOLED OFF A NISSAN SPOKESWOMAN SAID ALTHOUGH CAR SALES IN JAPAN OFTEN RISE IN JULY FOLLOWING THE ANNUAL BONUS PAYMENTS IN JUNE CONSUMERS THIS YEAR REMAINED LISTLESS DESPITE THE BONUS SALES CAMPAIGNS CONDUCTED BY CAR MAKERS THROUGHOUT JULY A TOYOTA SPOKESMAN SAID BECAUSE OF SHARP PROFIT DECLINES AMID WEAKNESS IN THE ECONOMY MANY COMPANIES CUT THEIR BONUS PAYMENTS IN JUNE THE DECLINE IN INCOME WHICH ALSO REFLECTS A CUTBACK IN OVERTIME WORK HAS BEEN CITED BY GOVERNMENT OFFICIALS AS A MAJOR FACTOR DEPRESSING CONSUMER SENTIMENT IN RECENT MONTHS JAPANESE CAR MAKERS ARE WAITING FOR OCTOBER'S MOTOR SHOW WHICH TAKES PLACE EVERY OTHER YEAR AND BOTH TOYOTA AND NISSAN ARE PLANNING TO INTRODUCE NEW MODELS TOWARD THE EVENT WE HOPE THE MOTOR SHOW WILL BECOME A STIMULUS TO CONSUMER DEMAND FOR CARS THE TOYOTA SPOKESMAN SAID BUT WITH JAPAN'S ECONOMIC RECOVERY UNCERTAIN NISSAN MAY HAVE TO LOWER ITS SALES TARGET SLIGHTLY FOR THE OCTOBERMARCH TERM THE NISSAN SPOKESWOMAN SAID 9308230109 930823 FINANCING BUSINESS DIME SAVINGS BANK OF NEW YORK DIME SAVINGS BANK OF NEW YORK SAID IT FILED WITH THE OFFICE OF THRIFT SUPERVISION A PROPOSED PUBLIC OFFERING OF 100 MILLION OF PREFERRED STOCK INTENDED TO QUALIFY AS TIER I EQUITY FOR REGULATORY CAPITAL PURPOSES THE NEW YORK BANK WHICH HAS 821 BILLION OF ASSETS SAID THAT AS OF JUNE 30 ITS LEVERAGE CAPITAL RATIO WAS 553 COMPARED WITH THE REGULATORY 5 TARGET AND ITS RISKBASED RATIO WAS 929 COMPARED WITH THE 8 TARGET THE OFFICE OF THRIFT SUPERVISION HAS REQUIRED THE BANK TO MEET A 9 RISKBASED RATIO BY DEC 31 AND 10 BY DECEMBER 1994 9308230108 930823 RIVERSIDE GROUP TO SELL UNIT JACKSONVILLE FLA RIVERSIDE GROUP INC SAID IT AGREED TO SELL ITS DEPENDABLE INSURANCE CO UNIT TO MILLERS MUTUAL FIRE INSURANCE CO OF TEXAS RIVERSIDE SAID IT WILL RECEIVE ABOUT 5 MILLION IN CASH FOR THE UNIT AND WILL KEEP DEPENDABLE'S REAL ESTATE AND OTHER ASSETS VALUED AT ABOUT 6 MILLION THE SALE IS SUBJECT TO APPROVAL BY THE FLORIDA DEPARTMENT OF INSURANCE AMONG OTHER THINGS 9308230107 930823 POLITICS & POLICY CLINTON'S HEALTH PROPOSAL PREDICTS QUICK DEFICIT CUT POSSIBLE SCENARIOS ALL USE MEDICAL SPENDING CAPS WITH SAVINGS BY 1997 BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GOOD HEALTH BENEFITS FOR EVERY AMERICAN NO NEW BROADBASED TAXES TO PAY FOR THEM AND DEFICIT REDUCTION BEGINNING IN THE FIRST YEARS THE PLAN TAKES EFFECT SOUND TOO GOOD TO BE TRUE PLENTY OF EXPERTS ARE CERTAIN TO THINK SO BUT THAT'S JUST WHAT PRESIDENT CLINTON IS GOING TO CLAIM THAT HIS HEALTHCARE PROPOSAL CAN ACHIEVE WHEN HE INTRODUCES IT NEXT MONTH WHILE HE'S VACATIONING ON MARTHA'S VINEYARD THIS WEEK AIDES SAY MR CLINTON IS CONSIDERING SEVERAL POSSIBLE SCENARIOS FOR FINANCING THE OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM ALL OF THEM HOWEVER ANTICIPATE PAYING FOR THE PLAN THROUGH CAPS PLACED ON BOTH PRIVATESECTOR AND PUBLIC HEALTHCARE SPENDING INCLUDING MEDICARE AND MEDICAID RATHER THAN THROUGH BROADBASED NEW TAXES THE OPTIONS DIFFER IN LARGE PART OVER HOW QUICKLY CERTAIN ASPECTS OF THE PLAN SHOULD BE PHASED IN AND WHETHER TO INCLUDE THE ONE TYPE OF LEVY THAT IS STILL BEING CONTEMPLATED SIN TAXES ON TOBACCO AND POSSIBLY ALCOHOL BUT EACH OF THE ALTERNATIVES SHARES A STUNNING FEATURE THEY SHOW THAT THE PLAN WILL HELP TO SHRINK THE FEDERAL BUDGET DEFICIT AS EARLY AS 1996 AND 1997 WHEN THE NEW HEALTH SYSTEM IS SUPPOSED TO KICK IN THE PROJECTED REDUCTION IN THE DEFICIT ALTHOUGH STILL BEING REFINED AND SUBJECT TO CHANGE RUNS FROM A COUPLE OF BILLION DOLLARS IN THE EARLY YEARS TO AS MUCH AS 40 BILLION ANNUALLY BEFORE THE END OF THE DECADE ACCORDING TO SENIOR ADMINISTRATION OFFICIALS THE EXACT FIGURES WILL DEPEND ON HOW MR CLINTON MAKES CERTAIN FINAL TRADEOFFS TOLD OF THESE ASSUMPTIONS HEALTHCARE ECONOMIST UWE REINHARDT IS MORE THAN A LITTLE INCREDULOUS AT LAST SAYS THE PRINCETON UNIVERSITY PROFESSOR THE PROVERBIAL FREE LUNCH OTHERS FEAR THAT THE CLINTON PLAN AS IT'S SHAPING UP COULD LEAD TO A RATIONING OF MEDICAL SERVICES AND SOME ANALYSTS WORRY THAT THE COSTSAVING MEASURES AT THE CORE OF THE PLAN COULD RIPPLE THROUGH AND HARM THE ECONOMY BUT AFTER MONTHS OF CALCULATIONS MR CLINTON'S ADVISERS ARE CONFIDENT THAT THEIR NUMBERS ARE SOLID AND THEIR THEORIES ARE WELLGROUNDED TEAMS OF INDEPENDENT ACTUARIES ALREADY HAVE GONE THROUGH MUCH OF THE DATA AND SIGNED OFF ON IT WHAT'S MORE THE WHITE HOUSE AIMS TO HAVE ITS ASSERTIONS BACKED UP BY THE CONGRESSIONAL BUDGET OFFICE WHICH IS SET TO BEGIN REVIEWING THE DETAILS OVER THE NEXT COUPLE OF WEEKS THE CBO WILL FIND A PLAN THAT PROMISES A LOT AND IN AN EFFORT TO FULFILL THOSE PROMISES DEMANDS A LOT AS WELL THE KEY TO FINANCING THE CLINTON PROPOSAL WILL BE THE CAPS PLACED ON BOTH PUBLIC AND PRIVATESECTOR HEALTHCARE SPENDING THE HOPE IS EVENTUALLY TO BE ABLE TO LIMIT ALL HEALTH SPENDING GROWTH TO THE LEVEL OF INFLATION PLUS INCREASES IN THE POPULATION THE BATTLE OVER THE PRESIDENT'S BUDGET PROBABLY FORCED HIM TO REALIZE THAT HE DOESN'T HAVE THE CAPACITY TO ASK FOR NEW TAXES TO FUND THE HEALTH PLAN SAYS BRANDEIS UNIVERSITY'S STUART ALTMAN WHO SERVED AS A CLINTON HEALTH ADVISER DURING THE TRANSITION BUT IF THEY REALLY PUT TIGHT CONTROLS ON SPENDING I THINK THAT COULD WORK MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED WILL BE CAPPED UNDER THE CLINTON PLAN SO WILL MEDICAID THE STATEFEDERAL PROGRAM FOR THE INDIGENT AND SO TOO WILL THE GROWTH IN THE AVERAGE PRICE OF THE FEDERALLY GUARANTEED BENEFITS PACKAGE THAT IS PROVIDED BY PRIVATE INSURERS THE TOTAL SAVINGS GENERATED ADMINISTRATION OFFICIALS THINK WILL BE ENOUGH TO BRING THE 37 MILLION UNINSURED INTO THE NEW SYSTEM PROVIDE ALL AMERICANS WITH HEALTH BENEFITS THAT ARE AS GOOD AS THE ONES TYPICALLY OFFERED BY LARGE CORPORATIONS AND GIVE GOVERNMENT SUBSIDIES TO THE COMPANIES AND INDIVIDUALS THAT CAN'T AFFORD SUCH A PACKAGE THE CLINTON PLAN WILL COVER A COMPREHENSIVE RANGE OF MEDICAL SERVICES FROM ROUTINE DOCTOR'S VISITS AND PRESCRIPTION DRUGS TO HOSPITALIZATION AND POSTACUTE HOME CARE IT WILL ALSO FEATURE BETTERTHANAVERAGE MENTALHEALTH AND PREVENTIVECARE COVERAGE AND THERE IS A GOOD LIKELIHOOD THAT EVEN DENTAL CARE WILL BE COVERED IN LATER YEARS FOR ADULTS ALTHOUGH CHILDREN MAY ENJOY DENTAL BENEFITS RIGHT AWAY THE FLOW OF FUNDS INTO THE NEW SYSTEM BEGINS WITH MR CLINTON'S MANDATE THAT EVERYONE CONTRIBUTE SOMETHING EMPLOYERS WILL BE ASKED TO PAY FOR 80 OF THE AVERAGE PRICE OF THE HEALTH POLICIES OFFERED TO THEIR WORKERS BY THE LARGE REGIONAL INSURANCE POOLS THE CLINTON PLAN WILL SET UP WORKERS FOR THEIR PART WILL HAVE TO COME UP WITH THE OTHER 20 ASSUMING THEY BUY AN AVERAGEPRICED PLAN IF THEY BUY A CHEAPERTHANAVERAGE PLAN THEY'LL CONTRIBUTE LESS IF THEY BUY A MORE EXPENSIVE PLAN THEIR CONTRIBUTION WILL INCREASE BUT THE MANDATE IS DESIGNED TO HIT ONLY SO HARD SENSITIVE TO THE POTENTIAL IMPACT ON THE BUSINESS COMMUNITY THE ADMINISTRATION WILL LIMIT CONTRIBUTIONS TO ABOUT 35 OF PAYROLL FOR THE SMALLEST AND LOWESTWAGE COMPANIES FOR LARGER BETTEROFF COMPANIES THAT ARE PART OF THE REGIONAL INSURANCEPURCHASING NETWORKS THE LIMIT WILL BE ABOUT 75 ADMINISTRATION OFFICIALS SAY THAT MANY LARGE COMPANIES SHOULD COME IN UNDER THE LIMIT INDIVIDUALS WHETHER EMPLOYED OR UNEMPLOYED WOULD ALSO HAVE A LIMIT ON THEIR CONTRIBUTIONS TENTATIVELY PROJECTED TO BE 19 TO 24 OF THEIR TOTAL FAMILY INCOME THE ESTIMATED 30 BILLION TO 40 BILLION GAP BETWEEN WHAT FIRMS AND INDIVIDUALS PAY INTO THE SYSTEM AND WHAT THE BASIC BENEFITS PACKAGE COSTS MEANWHILE IS TO BE MADE UP WITH FEDERAL SUBSIDIES AND THAT AIDES SAY IS WHERE THE SPENDING CAPS COME IN BY CAPPING THE RATE OF GROWTH IN MEDICARE AND MEDICAID THE WHITE HOUSE HOPES TO SQUEEZE TENS OF BILLIONS OF DOLLARS A YEAR DIRECTLY FROM THE SYSTEM BILLIONS MORE SHOULD BE RAISED AS THE GOVERNMENT REDUCES PAYMENTS TO HOSPITALS AND DOCTORS THAT CURRENTLY TREAT LARGE NUMBERS OF UNINSURED PEOPLE STILL ON TOP OF THAT IS ANOTHER LARGE POT OF MONEY BY CAPPING THE GROWTH OF MEDICAL COSTS EMPLOYERS WILL SPEND LESS ON HEALTH CARE FOR THEIR EMPLOYEES THEY WILL THEN PRESUMABLY TAKE THIS SUM AND EITHER GIVE IT BACK TO THEIR WORKERS IN THE FORM OF HIGHER WAGES OR USE IT TO FATTEN COMPANY PROFITS HEALTH BENEFITS ARE TAX DEDUCTIBLE WAGES AND PROFITS AREN'T THE END RESULT THE PRESIDENT'S ADVISERS SAY SHOULD BE A WINDFALL FOR THE TREASURY UNDERGIRDING THE CAPS WILL BE A HOST OF SYSTEMIC CHANGES AIMED AT SPURRING COMPETITION AMONG HEALTHCARE PROVIDERS THE SHEER SIZE OF THE REGIONAL INSURANCE POOLS FOR EXAMPLE IS SUPPOSED TO GIVE EMPLOYERS AND INDIVIDUALS NEWFOUND MUSCLE TO BUY THE BEST CARE AT THE LOWEST PRICE OTHER PIECES OF THE MASSIVE CLINTON PLAN FROM GOING TO A SINGLE INSURANCE CLAIMS FORM TO REVAMPING MALPRACTICE AND ANTITRUST LAWS ALSO ARE INTENDED TO BRING NEW EFFICIENCIES TO THE SYSTEM BUT THE FOCUS OF THE FIGHT AHEAD IS SURE TO BE THE CAPS ANY TIME AN ENTITLEMENT PROGRAM LIKE MEDICARE FACES A CUTBACK AS IT DID IN MR CLINTON'S BUDGET PLAN IT AUTOMATICALLY TRIGGERS FIERCE OPPOSITION IN CONGRESS THE CALL FOR CAPS ON PRIVATESECTOR PREMIUM GROWTH ALSO RAISES CONCERNS THE BIGGEST HAZARD OF PREMIUM CONTROLS IS THE RWORD RATIONING SAYS PAUL ELLWOOD A PEDIATRICIAN AND ONE OF THE FATHERS OF MANAGED COMPETITION THE BLEND OF REGULATION AND FREEMARKET FORCES THAT IS AT THE HEART OF THE CLINTON HEALTH PLAN THIS DOESN'T MEAN THAT PEOPLE WILL BE DENIED MEDICAL SERVICES BUT THEY MIGHT HAVE TO WAIT LONGER THAN THEY WANT FOR SUCH SERVICES JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION COMPLAINS THAT PREMIUM CAPS ARE JUST GOING TO INCREASE THE MICROMANAGEMENT THAT INSURANCE COMPANIES PUT ON THE PROVIDERS UNDERMINING QUALITY AND SYLVESTER SCHIEBER OF THE CONSULTING FIRM WYATT CO THINKS THE CAPS COULD LEAD TO FANTASTIC DISLOCATIONS IN THE HEALTHCARE INDUSTRY HURTING THE OVERALL ECONOMY FOR THEIR PART THOUGH CLINTON AIDES ARGUE THAT THERE'S NO REASON TO HAVE RATIONING AND TERRIBLE ECONOMIC SHOCKS WHEN THE CURRENT HEALTH SYSTEM HAS SO MUCH WASTE THAT CAN BE PURGED WITH THIS MUCH FAT IN THE SYSTEM IT SHOULD BE TRUE SAYS PRINCETON'S MR REINHARDT THE PROBLEM IS TRYING TO GET AT IT PRESIDENT AFTER PRESIDENT HAS TRIED AND NO ONE HAS BEEN ABLE TO DO IT KEY DECISIONS ON THE CLINTON HEALTH PLAN MADE OVER THE PAST SEVERAL MONTHS BY THE PRESIDENT AND HIS TOP ADVISERS A FEEFORSERVICE VERSION OF THE BENEFITS PACKAGE WITH DEDUCTIBLES OF 400 FOR EACH FAMILY AND 200 FOR EACH INDIVIDUAL THERE'S ALSO A 20 COPAYMENT ON EACH DOCTOR'S BILL AND OUTOFPOCKET MAXIMUMS OF 3000 FOR FAMILIES AND 1500 FOR INDIVIDUALS AN HMO VERSION FEATURES NO DEDUCTIBLE AND A 10 COPAYMENT A BENEFITS PACKAGE THAT'S EITHER BARE BONES OR AS GENEROUS AS THE BEST UNION PLAN A MANDATE FOR EVERY EMPLOYER TO CONTRIBUTE TO EMPLOYEE HEALTH COVERAGE INDIVIDUALS ALSO WILL BE REQUIRED TO CONTRIBUTE HOWEVER CONTRIBUTIONS WILL BE CAPPED AND FEDERAL SUBSIDIES GIVEN A PAYROLL TAX TAKEN OFF THE TABLE BECAUSE IT WOULD HAVE MEANT SOME PEOPLE HAVE TO PAY MORE FOR THE SAME BENEFITS THEY GET NOW LARGE EMPLOYERS LIKELY THOSE WITH 5000 OR MORE EMPLOYEES WILL BE ABLE TO SET UP THEIR OWN INSURANCE PURCHASING POOLS BUT MUST FOLLOW THE SAME RULES AS THE REGIONAL HEALTH ALLIANCES LETTING BIG EMPLOYERS OPT COMPLETELY OUT OF THE SYSTEM CAPS ON THE GROWTH OF MEDICARE AND MEDICAID ALSO CAPS ON THE GROWTH OF PREMIUMS IN THE REGIONAL INSURANCE POOLS A GLOBAL BUDGET THAT WOULD HAVE LIMITED ALL HEALTH SPENDING STATES GIVEN EXTENSIVE FLEXIBILITY IN SETTING UP INSURANCE POOLS HOLDING THE STATES RESPONSIBLE IF THE GROWTH IN PREMIUMS EXCEEDS THE TARGETS INSTEAD THE FEDERAL GOVERNMENT WILL ENFORCE THE CAPS 9308230106 930823 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT THREE AND SIXMONTH BILLS TO SETTLE AUG 26 AGCO CORP SECONDARY OFFERING OF 15 MILLION SHARES VIA SMITH BARNEY SHEARSON I NC APLUS COMMUNICATIONS INC INITIAL 33 MILLION SHARES 28 MILLION OFFERED BY TH E COMPANY VIA PRUDENTIAL SECURITIES INC CHIPCOM CORP 800000 SHARES VIA MONTGOMERY SECURITIES GYMBOREE CORP SECONDARY OFFERING OF 35 MILLION SHARES VIA GOLDMAN SACHS & CO HEALTHSOURCE INC 2 MILLION SHARES 18 MILLION OFFERED BY THE COMPANY VIA GOLD MAN SACHS IRT PROPERTY 4 MILLION SHARES VIA MERRILL LYNCH & CO MARINE HARVEST INTERNATIONAL INC 5 MILLION SHARES VIA BEAR STEARNS & CO AND SMITH BARNEY SHEARSON NEUREX CORP INITIAL 3 MILLION CLASS A SHARES VIA LEHMAN BROTHERS INC AND KIDD ER PEABODY & CO PACIFIC INVESTMENT MANAGING CO COMMERCIAL MORTGAGE SECURITIES TRUST INC INITIA L 10 MILLION SHARES VIA LEHMAN BROTHERS PERFORMANCE FOOD GROUP CO INITIAL 2 MILLION SHARES VIA ROBINSONHUMPHREY CO REGENERON PHARMACEUTICALS INC 26 MILLION SHARES VIA DILLON READ & CO SCIENTIFIC GAMES HOLDINGS CORP INITIAL 25 MILLION SHARES VIA ROBINSONHUMPHREY TRANSKARYOTIC THERAPIES INC INITIAL 25 MILLION SHARES VIA LEHMAN BROTHERS VIRGINIA HOUSING DEVELOPMENT AUTHORITY 156 MILLION OF VARIOUS 1993 COMMONWEALTH MORTGAGE REVENUE BONDS VIA COMPETITIVE BID ARIZONA PUBLIC SERVICE CO 178 MILLION OF POLLUTION CONTROL REVENUE REFUNDING B ONDS VIA A GOLDMAN SACHS GROUP JACKSONVILLE FLA 181 MILLION OF ELECTRIC SYSTEM REFUNDING BONDS VIA A BEAR S TEARNS GROUP LEWIS COUNTY PUBLIC UTILITY DISTRICT NO 1 WASH 150 MILLION OF SERIES 1993 RE VENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP LOS ANGELES COUNTY CONVENTION & EXHIBITION CENTER 510 MILLION OF REFUNDING CERT IFICATES OF PARTICIPATION VIA A GRIGSBY BRANDFORD & CO GROUP MAINE 170 MILLION OF GENERAL OBLIGATION TAX ANTICIPATION NOTES VIA AN AG ED WARDS & SONS INC GROUP METROPOLITAN TRANSPORTATION AUTHORITY NY 250 MILLION OF SERVICE CONTRACT BON DS VIA A BEAR STEARNS GROUP MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORP 200 MILLION OF STUDENTLOAN R EVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP NEW YORK STATE POWER AUTHORITY 11 BILLION OF GENERALPURPOSE REFUNDING AND NEW MONEY BONDS VIA A PAINEWEBBER INC GROUP SOUTH CAROLINA PUBLIC SERVICE AUTHORITY 450 MILLION OF 1993 REVENUE REFUNDING B ONDS VIA A GOLDMAN SACHS GROUP 9308230105 930823 WORLD MARKETS EUROPE'S LACK OF SHORTTERM INTEREST RATE CUTS LEADS SOME STRATEGISTS TO PREDICT LETHARGIC 1994 BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHILE EUROPEAN STOCK MARKETS HAVE BEEN FIRED UP IN ANTICIPATION OF ECONOMIC RECOVERY NEXT YEAR SOME STRATEGISTS ARE POURING WATER ON THE FLAMES BY PREDICTING ANY PICKUP IN GROWTH WILL BE NEGLIGIBLE CHIEF AMONG THE REASONS WHY 1994 INCREASINGLY LOOKS LIKE IT COULD BE ALMOST AS LETHARGIC AS 1993 FOR EUROPE IS THE PACE OF SHORTTERM INTEREST RATE CUTS AFTER THE VIRTUAL SUSPENSION OF THE EXCHANGE RATE MECHANISM THIS MONTH THERE WAS WIDESPREAD HOPE THAT WITHIN WEEKS INTEREST RATES ACROSS THE CONTINENT SAVE GERMANY WOULD TUMBLE THANKS TO BEING UNSHACKLED FROM THE MARK BUT DESPITE SOME CAUTIOUS CUTS ON OVERNIGHT LENDING RATES BY THE BANK OF FRANCE LAST WEEK KEY FRENCH SHORTTERM MONEY MARKET RATES ARE ACTUALLY HIGHER THAN THEY WERE BEFORE THE ERM CRISIS THREEMONTH MONEY WAS QUOTED LATE FRIDAY AT 925 UP FROM 851 AT THE START OF THE MONTH DENMARK SPAIN AND PORTUGAL ALL HAVE SHORTTERM MONEY RATES ABOVE 12 WHILE ITALY'S RATES ARE STILL RELATIVELY HIGH AT 975 MOST COUNTRIES APPEAR UNWILLING TO TAKE THE SAME ROUTE AS BRITAIN IN SEPTEMBER WHEN THE POUND WAS REMOVED FROM THE ERM WHICH ESSENTIALLY SACRIFICED THE VALUE OF THE CURRENCY FOR THE SAKE OF ECONOMIC GROWTH STERLING PLUNGED ABOUT 20 COMPARED WITH THE DOLLAR AND MAJOR EUROPEAN CURRENCIES ALTHOUGH IT HAS SINCE REGAINED ABOUT 5 OF ITS VALUE OVER ABOUT A MONTH UK INTERBANK INTEREST RATES WERE SLASHED FROM 10 TO 6 THE LEVEL THEY ARE AT NOW THE BRITISH ECONOMY WHICH HAD SPENT THE PREVIOUS 24 MONTHS IN RECESSION SOON BEGAN TO SHOW SIGNS OF LIFE INDUSTRIAL PRODUCTION IS NOW GROWING AT A 33 ANNUAL RATE WHILE RETAIL SALES ARE CLIMBING AT ABOUT 44 UNEMPLOYMENT AT 104 HASN'T STARTED TO FALL SIGNIFICANTLY YET BUT SEEMS TO HAVE PEAKED TWO MONTHS AGO WITH A HUGE CHUNK OF EUROPE'S INVESTMENT COMMUNITY BASED IN LONDON IT'S EASY TO SEE WHY ANALYSTS EXTRAPOLATED FROM BRITAIN'S POSTERM EXPERIENCE AND PREDICTED THAT FOLLOWING THE WIDENING OF THE MECHANISM FLUCTUATION BANDS THE CONTINENT'S RECOVERY WAS JUST AROUND THE CORNER THE FORECAST HOWEVER IGNORES SEVERAL IMPORTANT DIFFERENCES PARTICULARLY THE SENSITIVITY OF THE ECONOMIES OF GERMANY FRANCE ITALY AND THE NETHERLANDS TO INTEREST RATES ACCORDING TO RESEARCH BY PARIBAS CAPITAL MARKETS FOR EXAMPLE HOUSEHOLD SECTOR DEBT IS ABOUT 78 OF INCOME IN THE UK COMPARED WITH 45 IN FRANCE AND 37 IN GERMANY IN ADDITION A SIGNIFICANTLY GREATER PERCENTAGE OF UK HOMEOWNERS HAVE FLOATING RATE MORTGAGES COMPARED WITH THE CONTINENT MEANING THAT CUTS IN SHORTTERM RATES VERY QUICKLY TRANSLATE INTO SAVINGS ON HOUSING COSTS THAT CAN IN TURN BE SPENT ON GOODS AND SERVICES LONGTERM RATES ARE BY FAR THE MOST IMPORTANT FOR FINANCING INVESTMENT AND GETTING ECONOMIES GOING AGAIN SAYS ROLAND LEUSCHEL CHIEF STRATEGIST AT BANQUE BRUXELLES LAMBERT IN BRUSSELS WE ARE ALREADY RELATIVELY CLOSE TO THE BOTTOM OF THOSE RATES PARTICULARLY FOR GERMANY HE ADDS FOR THE NEXT YEAR OR SO LOWER RATES WHETHER SHORT OR LONGTERM WON'T HELP EUROPE'S ECONOMY BECAUSE WE HAVE TOO MUCH OVERCAPACITY MR LEUSCHEL THINKS EQUITY MARKETS HAVE GONE TOO FAR IN FACTORING IN A RECOVERY FOR NEXT YEAR AS IT HAS IN THE PAST OCTOBER COULD BE A DANGEROUS MONTH HE SAYS BY THEN IT WILL BECOME OBVIOUS THAT THE DEMAND FOR SOCIAL SECURITY PAYMENTS WILL BE CONTINUALLY RISING ACROSS EUROPE AND WE WON'T HAVE GROWTH NEXT YEAR INDEED THE PROSPECTS ARE LOOKING INCREASINGLY GRIM FOR GERMANY WHICH HAS TRADITIONALLY ACTED AS THE CONTINENT'S ECONOMIC LOCOMOTIVE GIVEN THE HIGH PROBABILITY THAT THE MARK'S STRENGTH WILL SAP THE GERMAN EXPORT INDUSTRY ANALYSTS ARE AGAIN CUTTING GROWTH FORECASTS GERMANY COULD REALLY GO FOR A DOUBLEDIP RECESSION SAYS PHILIPPE BROSSARD CHIEF ECONOMIST AT CREDIT LYONNAIS IN PARIS MARKETS WILL WAIT FOR INFLATION TO DROP AND SAVINGS RATIOS START TO RISE CONSENSUS FORECASTS FOR GROWTH OF GERMANY'S GROSS DOMESTIC PRODUCT IN 1994 ARE NOW ABOUT 06 DOWN FROM 12 PREDICTED IN MAY ALSO IMPORTANT IS THE LIKELIHOOD THAT EUROPEAN LONGTERM INTEREST RATES AS MEASURED BY BOND YIELDS SEEM TO HAVE LIMITED SCOPE FOR FALLING FURTHER AFTER HAVING ALREADY DROPPED SHARPLY IN THE PAST 18 MONTHS 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 TOKYO STOCKS FELL FRIDAY AS INITIAL ENTHUSIASM OVER A STRONGER DOLLAR GAVE WAY TO PROFITTAKING IN LACKLUSTER TRADING PROFITTAKING ALSO SENT THE LONDON MARKET SLIGHTLY LOWER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11154 UP 054 REFLECTING INCREASES IN MARKETS IN EUROPE AND ASIA/PACIFIC AND A DROP IN US MARKETS TOY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11651 UP 422 OR 376 WITH FISHERPRICE OF THE US POSTING A 3968 GAIN IN ITS LOCAL CURRENCY ADVANCED MEDICAL DEVICES STOCKS TRAILED AT 6256 DOWN 11 OR 173 WITH ST JUDE MEDICAL OF THE US SLIDING 208 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8571 POINTS THURSDAY DROPPED 8021 FRIDAY TO 2060726 ON MONDAY THE NIKKEI FELL 6741 POINTS TO CLOSE THE MORNING SESSION AT 2053985 FRIDAY'S VOLUME WAS ESTIMATED AT 230 MILLION SHARES DOWN FROM 2531 MILLION SHARES ON THURSDAY LOSERS OUTNUMBERED GAINERS 501442 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH DROPPED 1102 POINTS THURSDAY SLIPPED 557 POINTS OR 033 TO 165919 BUYING FOCUSED ON EXPORTERS FOLLOWING THE US FEDERAL RESERVE'S MOVE TO HALT THE YEN'S SURGE BUT WHILE THE DOLLAR'S BRIEF RECOVERY WAS GOOD NEWS FOR EXPORTERS IT SIGNALED THAT PRESSURE FOR LOWER INTEREST RATES MAY HAVE EASED MAKING IT A MIXED BLESSING FOR INVESTORS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE INDEX SLIPPED 79 POINTS TO 30576 THE FT 30 INDEX LOST 104 TO 23841 FRIDAY'S VOLUME WAS 6334 MILLION SHARES COMPARED WITH 8372 MILLION THURSDAY THE MARKET BEGAN HIGHER GAINING CONFIDENCE FROM WALL STREET'S RECORD CLOSE BUT SLIPPED IN THE LATE GOING ON PROFITTAKING AND SELLING RELATED TO THE EXPIRATION OF STOCKINDEX FUTURES CONTRACTS MOST OTHER EUROPEAN MARKETS FINISHED LOWER IN SLOW TRADING ASIAN MARKETS WERE MIXED IN SINGAPORE STOCKS CLIMBED TO THEIR FIFTH RECORD IN THE PAST SIX SESSIONS ON STRONG SUPPORT FROM FOREIGN BUYERS IN HONG KONG PRICES SKIDDED BREAKING A STREAK OF RECORD HIGHS ON CONCERN ABOUT EARNINGS AT HSBC'S HONGKONG & SHANGHAI BANK IN SYDNEY AFTER A WEEK OF STEADY GAINS SHARE PRICES CLOSED MIXED FRIDAY BUT THE ALLORDINARIES INDEX REMAINED VIRTUALLY UNCHANGED STILL THE INDEX REACHED ITS HIGHEST LEVEL SINCE THE OCTOBER 1987 GLOBAL STOCK MARKET CRASH THE ALLORDINARIES CLOSED FRIDAY AT 19271 UP 08 POINTS THE INDEX HAS RISEN 712 POINTS OR 38 OVER THE WEEK AND IT STARTED 1993 AT 15499 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 9308230104 930823 CALIFORNIA BLUE CROSS IN TALKS TO SETTLE DISPUTE OVER WELLPOINT PUBLIC OFFERING BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SACRAMENTO CALIF A CALIFORNIA LEGISLATOR SAID NEGOTIATIONS HAVE BEGUN WITH BLUE CROSS OF CALIFORNIA FOR A MULTIMILLIONDOLLAR SETTLEMENT OF A DISPUTE CHALLENGING ASPECTS OF ITS SALE TO THE PUBLIC OF A MINORITY STAKE IN ITS WELLPOINT HEALTH NETWORKS INC UNIT BY KEEPING A MAJORITY STAKE IN THE UNIT BLUE CROSS SIDESTEPPED A CALIFORNIA LAW REQUIRING NONPROFIT ORGANIZATIONS TO MAKE CHARITABLE DONATIONS WHEN THEY CONVERT TO FORPROFIT STATUS A BLUE CROSS ATTORNEY TOLD LEGISLATORS AT A SENATE COMMITTEE MEETING WEDNESDAY THAT HE WAS PREPARED TO DISCUSS A SETTLEMENT OF 5 MILLION A YEAR FOR 20 YEARS SAID SEN FRANK HILL R WHITTIER ONE SENATOR THREW OUT A FIGURE OF 10 MILLION TO 20 MILLION OVER THE SAME PERIOD SEN HILL SAID THE TALKS WERE A NEXUS OF COMPROMISE IN THE SIMMERING FIGHT BETWEEN BLUE CROSS AND LEGISLATORS LED BY ASSEMBLYMAN PHILLIP ISENBERG D SACRAMENTO WHO HEADS THE ASSEMBLY JUDICIARY COMMITTEE THERE HAD NEVER BEEN ANY SPECIFIC DOLLAR AMOUNT BANTERED ABOUT BEFORE IT LOOKS LIKE THINGS ARE COMING TO FRUITION MR HILL SAID THE LEGISLATOR SAID BLUE CROSS REPRESENTATIVES AT THE MEETING TRIED TO REACH LEONARD D SCHAEFFER CHIEF EXECUTIVE OFFICER OF BOTH WELLPOINT AND BLUE CROSS WHO WAS ON VACATION THE REPRESENTATIVES AT THE MEETING APPARENTLY WEREN'T AUTHORIZED TO APPROVE ANY SPECIFIC SETTLEMENT OFFERS MR ISENBERG IS SPONSORING A BILL THAT WOULD REQUIRE BLUE CROSS TO MAKE A RETROACTIVE DONATION TO COMPENSATE CALIFORNIA TAXPAYERS FOR THE WELLPOINT SALE THE BILL AB1784 IS ALSO DESIGNED TO PREVENT NONPROFIT ORGANIZATIONS FROM AVOIDING THE STATE'S LAW GOVERNING CONVERSIONS TO FORPROFIT STATUS IF A SETTLEMENT WITH BLUE CROSS IS REACHED MR ISENBERG IS EXPECTED TO DROP THE RETROACTIVE PORTION OF THE BILL AIMED SQUARELY AT BLUE CROSS AND WELLPOINT WE'VE BEEN NEGOTIATING WITH BLUE CROSS FOR THE PAST FOUR OR FIVE DAYS BOTH DIRECTLY AND INDIRECTLY GENE ERBIN COUNSEL TO THE ASSEMBLY JUDICIARY COMMITTEE SAID LAST WEEK THE IMPORTANT DEVELOPMENT FROM OUR PERSPECTIVE IS BLUE CROSS'S WILLINGNESS TO UNDERTAKE THIS ANNUAL OBLIGATION BLUE CROSS BASED IN THE LOS ANGELES SUBURB OF WOODLAND HILLS PLAYED DOWN THE SIGNIFICANCE OF THE DEVELOPMENTS IN SACRAMENTO THIS IS NOT A BIG DEAL SAID PATRICK GARNER A BLUE CROSS SENIOR VICE PRESIDENT WHEN WE ORIGINALLY FILED FOR OUR RESTRUCTURING WE MADE IT VERY CLEAR IN OUR APPLICATION THAT WE FULLY INTENDED TO INCREASE OUR LEVEL OF PUBLIC BENEFIT ACTIVITY WE DON'T HAVE ANY PROBLEM IN CODIFYING WHAT WE INTENDED TO DO ALL ALONG AS PART OF ITS RESTRUCTURING BLUE CROSS IN JANUARY SOLD AN 18 STAKE IN WELLPOINT HEALTH NETWORKS WHICH NOW TRADES ON THE NEW YORK STOCK EXCHANGE THE INITIAL PUBLIC OFFERING RAISED 476 MILLION WELLPOINT SET UP BY BLUE CROSS IN 1986 TO FOCUS ON MANAGED CARE OPERATES A HEALTHMAINTENANCE ORGANIZATION A PREFERRED PROVIDER NETWORK AND A VARIETY OF OTHER SPECIAL HEALTH PLANS WELLPOINT CLOSED FRIDAY AT 27625 A SHARE UP 50 CENTS IN COMPOSITE TRADING 9308230103 930823 INTERNATIONAL CATHAY AIR ACTS TO ADOPT CHINESE FLAVOR BUT ERASING BRITISH IMAGE WILL TAKE LOTS MORE WORK BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHEN A CATHAY PACIFIC AIRWAYS JET PULLS IN FOR A PAINT JOB THESE DAYS IT'S STRIPPED OF A TELLING SYMBOL THE UNION JACK WE'RE TAKING A GOOD HARD LOOK AT OURSELVES AND SEEING WE'RE NO LONGER A BRITISH AIRLINE SAYS A CATHAY EXECUTIVE WE'RE A HONG KONG AIRLINE THERE'S REALLY NO POINT IN HAVING A BRITISH FLAG TAKING ON A MORE CHINESE IDENTITY IS ONLY PRUDENT FOR CATHAY AS ITS HOME TERRITORY HONG KONG PREPARES TO BE HANDED BACK TO CHINA IN 1997 BUT ANALYSTS AND EVEN SOME CATHAY EXECUTIVES ACKNOWLEDGE THAT SHEDDING A COLONIAL IMAGE WILL REQUIRE A LOT MORE THAN A FEW BUCKETS OF PAINT CATHAY WHOSE MAIN SHAREHOLDER IS SWIRE PACIFIC LTD CONTROLLED BY THE UNITED KINGDOMBASED SWIRE FAMILY IS COZYING UP TO THE CHINESE THROUGH JOINT VENTURES IT NOW COUNTS THREE STATEOWNED MAINLAND COMPANIES AS MAJOR SHAREHOLDERS BUT THE AIRLINE'S UPPER MANAGEMENT REMAINS OVERWHELMINGLY WHITE AND ANGLOSAXON AND A 17DAY STRIKE LAST JANUARY SHOWED THAT THOSE MANAGERS DON'T ALWAYS COMMUNICATE WELL WITH THE AIRLINE'S MOSTLY ASIAN CABIN CREWS MOREOVER ANALYSTS QUESTION WHETHER BEIJING IN THE LONG RUN WILL ALLOW A MAJOR AIRLINE BASED IN ITS TERRITORY TO BE CONTROLLED BY FOREIGNERS CATHAY WAS THE WORLD'S THIRD MOST PROFITABLE AIRLINE IN 1992 BASED ON OPERATING PROFIT AFTER SINGAPORE AIRLINES AND BRITISH AIRWAYS BUT IT ISN'T IMMUNE TO THE COMPETITIVE PRESSURES WRACKING THE INDUSTRY LARGELY BECAUSE OF LAST JANUARY'S TRAUMATIC STRIKE CATHAY IS EXPECTED TO REPORT THIS WEEK THAT EARNINGS FELL STEEPLY IN THE FIRST HALF WHETHER THE AIRLINE CAN MAINTAIN ITS LOFTY POSITION AMONG RIVAL CARRIERS IN THE LONGER TERM EXPERTS SAY DEPENDS ON HOW WELL IT REPOSITIONS ITSELF AS AN ASIAN CARRIER RATHER THAN A VESTIGE OF THE BRITISH EMPIRE CHIN LIM AN INVESTMENT ANALYST AT MORGAN STANLEY ASIA LTD PUTS IT BLUNTLY FOR THE AIRLINE TO SURVIVE IT MUST BECOME A CHINESE AIRLINE IT'S TRYING FOR INSTANCE CATHAY HAS HIRED LANDOR ASSOCIATES A US CONSULTING FIRM TO CREATE A MORE CHINESE LOOK BY REDESIGNING EVERYTHING FROM THE AIRLINE'S LOGO TO ITS TICKETING COUNTERS AND AIRPORT LOUNGES ON A DEEPER LEVEL POLITICAL AND ECONOMIC PRESSURES HAVE PROMPTED CATHAY TO MOVE OPERATIONS INTO CHINA OR ELSEWHERE ABROAD IT STARTED BY TRANSFERRING ITS 300PERSON ACCOUNTING UNIT TO CANTON IN MARCH CLEARLY SOUTHERN CHINA IS AN OBVIOUS PLACE TO MOVE TO CATHAY MANAGING DIRECTOR ROD EDDINGTON SAID IN AN INTERVIEW OTHERS SAY CATHAY WAS PREPARING TO SET UP THE UNIT IN MALAYSIA BUT DECIDED AT THE LAST MINUTE THAT SOUTHERN CHINA WAS A MORE LOGICAL PLACE AS ONE EXECUTIVE PUTS IT IN ANY CASE ANALYSTS SAID THE RELOCATION BROKE A VITAL PSYCHOLOGICAL BARRIER FOR CATHAY OTHER CHINA PROJECTS FOLLOWED IN JUNE CATHAY AND AN AFFILIATE HONG KONG AIRCRAFT ENGINEERING CO OR HAECO SIGNED A CONTRACT WITH CHINESE AUTHORITIES FOR A JOINT VENTURE AIRCRAFTMAINTENANCE CENTER IN XIAMEN FUJIAN PROVINCE CATHAY WILL HOLD 10 AND HAECO 41 IN THE 63 MILLION FACILITY DUE TO OPEN IN 1996 THE AIRLINE ALSO IS NEGOTIATING TO MANAGE A NEW INTERNATIONAL AIRPORT IN WUHAN IN THE CENTRAL CHINA PROVINCE OF HUBEI SOME AIRLINE ANALYSTS THINK CATHAY'S LONGTERM STRATEGY IS TO SET UP A HUB IN CHINA A CATHAY SPOKESWOMAN SAID ONLY THAT THE CARRIER IS INTERESTED IN OPPORTUNITIES IN CHINA BUT WILL REMAIN BASED IN HONG KONG BUT CAPACITY CONSTRAINTS AT HONG KONG'S CONGESTED KAI TAK AIRPORT LIMIT THE ABILITY OF CATHAY AND ITS SISTER CARRIER HONG KONG DRAGON AIRLINES TO EXPAND OPERATIONS HONG KONG'S NEW AIRPORT AT CHEK LAP KOK IS SCHEDULED TO OPEN IN JUNE 1997 BUT AVIATION OFFICIALS EXPRESS DOUBT THAT WILL HAPPEN BEFORE 1998 THAT'S WHERE WUHAN COMES IN WUHAN IS RIGHT IN THE MIDDLE OF CHINA NOTED MORGAN STANLEY'S MR LIM THEY GIVE THE CHINESE TECHNOLOGY AND MANAGEMENT EXPERTISE AND GET A HUB IT'S VERY SMART CATHAY ITSELF DOESN'T FLY TO CHINA IT GAVE UP ITS ROUTES TO BEIJING AND SHANGHAI IN 1990 AFTER BUYING INTO DRAGONAIR SINCE THEN CATHAY AND SWIRE HAVE INCREASED THEIR COMBINED STAKE TO 43 OF THE SHARES IN DRAGONAIR ONE OF THE FASTESTGROWING ASIAN AIRLINES CITIC PACIFIC LTD THE HONG KONGBASED ARM OF STATEOWNED CHINA INTERNATIONAL TRUST & INVESTMENT CORP OWNS 46 OF DRAGONAIR CITIC'S CONNECTIONS HAVE HELPED DRAGONAIR GAIN 14 MAINLAND DESTINATIONS MORE THAN ANY OTHER CARRIER BASED OUTSIDE CHINA WITH A PERCEIVED EDGE IN SERVICE AND SAFETY OVER CHINESE AIRLINES DRAGONAIR HAS RACKED UP PROFITS FOR CATHAY BEYOND TIES WITH DRAGONAIR CATHAY WOULD BE WISE TO ACQUIRE A STAKE IN A MAINLAND CARRIER TO HELP SECURE ITS FUTURE IN HONG KONG INDUSTRY EXECUTIVES AND ANALYSTS SAY SEVERAL BELIEVE IT IS LIKELY TO DO SO MR EDDINGTON SAYS ONLY WE'LL LOOK AT ANY OPPORTUNITIES THAT MAKE SENSE WHILE CATHAY HAS SCOURED CHINA FOR OPPORTUNITIES BEIJING HASN'T MISSED THE CHANCE TO BUY A SLICE OF CATHAY CITIC PACIFIC ACQUIRED A 125 INTEREST IN CATHAY IN 1987 AND GAINED A BOARD SEAT FOR ITS CHAIRMAN LARRY YUNG THE MAINLAND'S STAKE CLIMBED TO 225 IN JULY 1992 WHEN STATEOWNED CHINA TRAVEL SERVICE AND CHINA NATIONAL AVIATION CORP EACH BOUGHT 5 STAKES FROM HONGKONG & SHANGHAI BANKING CORP THEIR CHAIRMEN ALSO JOINED THE CATHAY BOARD MANAGEMENT OF THE AIRLINE REMAINS FIRMLY WITH SWIRE WHICH CONTROLS 518 OF THE SHARES ASKED ABOUT THE BALANCE OF POWER WITH CHINA MR EDDINGTON REPLIES I THINK ALL THE CURRENT SHAREHOLDERS ARE ENTIRELY COMFORTABLE WITH THE SHAREHOLDING STRUCTURE AS IT IS BUT OTHERS SAY THAT THE MANNER IN WHICH THE MAINLAND HAS INCREASED ITS STAKE COULD BODE ILL FOR SWIRE AFTER 1997 A CATHAY SPOKESWOMAN DENIES SUCH FORCE WAS USED IN A NEWS RELEASE AT THE TIME CATHAY SAID IT HAD APPROACHED HONGKONG BANK AND ASKED IT TO SELL 10 TO THE CHINESE COMPANIES AFTER THEY EXPRESSED INTEREST IN BUYING IN WILLIAM PURVES CHAIRMAN OF HONGKONG BANK SAID IN THE NEWS RELEASE ALTHOUGH IT HAD BEEN OUR INTENTION TO RETAIN A LONGTERM INVESTMENT OF 10 IN CATHAY PACIFIC AVIATION IS CLEARLY NOT A CORE BUSINESS FOR A FINANCIAL SERVICES GROUP AND IT WAS CONSIDERED APPROPRIATE TO RESPOND POSITIVELY TO THIS APPROACH STEVE MILLER A 20YEAR VETERAN OF ASIAN AVIATION AND FORMER CHIEF EXECUTIVE OF DRAGONAIR SAID THAT FOR CATHAY TO BE SECURE COME 1997 THERE IS NO ALTERNATIVE TO CHINESE SHAREHOLDERS' ACQUIRING THE MAJOR CONTROLLING INTERESTS AT THE VERY LATEST BY 1 JULY 1997 THE DATE THE COLONY IS TO BE HANDED OVER IN NO COUNTRY IN THE WORLD IS THERE AN AIRLINE OWNED AND CONTROLLED BY NONNATIONALS AND OPERATING MAJOR SERVICES SAYS MR MILLER NOW MANAGING DIRECTOR OF TRINITY AVIATION LTD HONG KONG THIS WOULD BE THE CASE IF THE SHAREHOLDING OF CATHAY DOESN'T CHANGE MEANWHILE HONG KONG'S NEARLY 10 ANNUAL INFLATION HIGH LABOR COSTS AND EXORBITANT LAND COSTS CONTINUE TO NIBBLE AWAY AT CATHAY'S BOTTOM LINE THE CARRIER ALSO IS SUFFERING FROM THE RECESSION IN JAPAN TRADITIONALLY ONE OF ITS BIGGEST MARKETS LAST YEAR NET INCOME ROSE A MODEST 19 TO 303 BILLION HONG KONG DOLLARS US391 MILLION FOR 1993 PROFIT IS EXPECTED TO BE FLAT AT BEST ANALYSTS SAY 9308230102 930823 BUSINESS BRIEF ACE LTD AGREES TO ACQUIRE CODA IN TRANSACTION TOTALING 250 MILLION HAMILTON BERMUDA ACE LTD AGREED TO BUY CORPORATE OFFICERS & DIRECTORS ASSURANCE HOLDING LTD FOR 250 MILLION THE TRANSACTION WOULD COMBINE TWO OF THE LARGEST WRITERS OF DIRECTORS AND OFFICERS LIABILITY COVERAGE WHICH PROTECTS CORPORATE OFFICIALS FROM LEGAL JUDGMENTS FOR THEIR CORPORATE ACTIONS ALTHOUGH BOTH COMPANIES ARE BASED IN BERMUDA THEIR CUSTOMERS ARE PRIMARILY IN THE US ACE CURRENTLY MANAGES CODA'S OPERATIONS CODA WITH 518 MILLION IN ASSETS REPORTED NET INCOME OF 295 MILLION LAST YEAR THE COMPANY FORMED IN 1986 BY INSURANCE BROKER JOHNSON & HIGGINS AND CHASE MANHATTAN CORP IS OWNED BY A GROUP OF US CORPORATIONS THAT INVESTED IN THE COMPANY TO GET COVERAGE ACE FORMED BY INSURANCE BROKER MARSH & MCLENNAN COS AND JP MORGAN & CO PROVIDES EXCESS LIABILITY INSURANCE WHICH PROTECTS OFFICIALS FROM UNUSUALLY LARGE LOSSES THE MERGER WILL STRENGTHEN ACE'S COMPETITIVE POSITION SAID ACE CHAIRMAN WALTER SCOTT WE ANTICIPATE THAT THE PURCHASE OF CODA WILL HAVE A POSITIVE IMPACT ON ACE'S FINANCIAL PERFORMANCE GOING FORWARD THE MERGER REQUIRES APPROVAL OF CODA'S BOARD AND IS EXPECTED TO CLOSE IN NOVEMBER IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE ACE SHARES CLOSED AT 36 UP 625 CENTS 9308230101 930823 REVIEW & OUTLOOK EDITORIAL MRS MURRAY GOES TO WASHINGTON WE SPEND A CONSIDERABLE AMOUNT OF TIME HERE WRITING ABOUT WHAT THE POLITICOS IN WASHINGTON PRETEND TO BE DOING IN THE PUBLIC INTEREST THEN OCCASIONALLY ONE OF THE BELTWAY POOHBAHS REPLIES THAT WE DON'T UNDERSTAND IT'S VERY COMPLICATED AND SO ON SO IT'S A RELIEF WHEN WITH ABOUT THE REGULARITY OF THE SUMMER METEOR SHOWERS ONE OF THEM PERSONALLY ILLUMINATES THE WAY WASHINGTON REALLY WORKS THIS SUMMER'S REVELATION COMES BY WAY OF FRESHMAN DEMOCRATIC SENATOR PATTY MURRAY OF WASHINGTON STATE WHO SEEMS TO HAVE HAD THE SCALES FALL FROM HER EYES DURING THE RECENT CLINTON BUDGET VICTORY MRS MURRAY EXPLAINED WHAT SHE'D LEARNED TO THE SEATTLE POSTINTELLIGENCER WHERE THE FOLLOWING REMARKS FIRST APPEARED LAST WEEK EVERYBODY KNOWS HOW TO OPERATE WITH THE PRESIDENT NOW SENATOR MURRAY INFORMED THE POSTINTELLIGENCER'S ED PENHALE WHAT WE HAVE ALL LEARNED IS THAT YOU DECIDE RIGHT AWAY WHAT YOU WANT AND HOLD YOUR VOTE FOR IT AND MAYBE SOMETHING GOOD HAPPENS FOR YOU OR YOUR STATE SENATOR MURRAY HERSELF WAS INTERESTED IN A TAX PROVISION TO HELP COMMUNITIES THAT WOULD BE HURT BY PROPOSED LIMITS ON TIMBER CUTTING HAVING WATCHED MY FELLOW SENATORS GET WHAT THEY WANTED OVER THE PAST FEW MONTHS I SENT A HANDWRITTEN NOTE IN TO FINANCE CHAIRMAN PAT MOYNIHAN I SAID GEE I'VE BEEN WITH YOU ALL THE WAY I'VE TOLD YOU I WAS GOING TO VOTE FOR THIS BUT I JUST HAVE THIS ONE THING I WANT ' AND LO 15 MINUTES LATER SHE GOT IT WE DON'T DOUBT THAT MOST NEWCOMERS TO CONGRESS EXPERIENCE ONE OF THESE EPIPHANIES WHEN SUDDENLY THE REALITY OF THE PLACE COMES CLEAR WE TRUST THAT THIS NEW KNOWLEDGE WILL SERVE ALL THE FRESHMEN LEGISLATORS WELL AS THEY JOURNEY FORWARD ON THE PEOPLE'S BUSINESS STILL SENATOR MURRAY COULDN'T HELP BUT NOTE WE HAVE A PUBLIC WHICH SIMPLY DOESN'T BELIEVE ANY POLITICIAN NO MATTER HOW HONEST YOU TRY TO BE ALAS 9308230100 930823 WHO'S NEWS FEHER RESIGNS 2 POSTS AT MEMBERS SERVICE WINTER PARK FLA ARTHUR S FEHER JR RESIGNED AS CHIEF EXECUTIVE OFFICER AND PRESIDENT OF MEMBERS SERVICE CORP AS PART OF THE TELECOMMUNICATIONS HOLDING COMPANY'S RESTRUCTURING MR FEHER 45 YEARS OLD WILL BE SUCCEEDED BY LESLIE S GREYLING 41 A REALESTATE INVESTOR AND CHAIRMAN OF CAMBRIDGE FINANCIAL CORP MR FEHER WILL REMAIN AS CHAIRMAN AND CHIEF OPERATING OFFICER THE COMPANY ALSO ANNOUNCED IT PLANS TO CHANGE ITS NAME TO RENAISSANCE CASINO & INTERNATIONAL RESORTS LTD AS PART OF AN EFFORT TO ENTER THE CASINO GAMBLING AND HOTEL RESORT INDUSTRY FURTHER THE COMPANY EXPANDED ITS BOARD TO SEVEN DIRECTORS NEW DIRECTORS ARE JOSE A ESQUIVEL PRESIDENT OF CAMBRIDGE FINANCIAL CLAUDE R KIRK FORMER FLORIDA GOVERNOR AND GENE PAUL FEHER PRESIDENT OF GENE PAUL FEHER & ASSOCIATES A PRIVATE CONSTRUCTION CONSULTING FIRM MEMBERS SERVICE SAID AN ACQUISITION AGREEMENT WITH DIGITAL AUDIO INFORMATION SYSTEMS INC A TELECOMMUNICATIONS SOFTWARE COMPANY COLLAPSED AND IS PARTLY WHY THE COMPANY IS RESTRUCTURING 9308230099 930823 WHO'S NEWS METPRO CORP METPRO CORP HARLEYSVILLE PA WILLIAM F MOFFITT 44 YEARS OLD WAS ELECTED A DIRECTOR OF THE FILTRATION EQUIPMENT MAKER INCREASING THE BOARD TO SEVEN HE REMAINS VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER SECRETARY AND TREASURER OF METPRO 9308230098 930823 CANADA MOVES TO EASE CURBS ON STOCK ISSUES BY FOREIGN CONCERNS A WALL STREET JOURNAL NEWS ROUNDUP CANADA'S SECURITIES REGULATORS UNVEILED A POLICY AIMED AT LOOSENING SOME RESTRICTIONS ON FOREIGN COMPANIES PLANNING TO ISSUE STOCK IN CANADA CURRENTLY FOREIGN CONCERNS MUST FILE A PROSPECTUS TAILORED TO CANADIAN SPECIFICATIONS IF THEY WANT TO SELL STOCK IN THE COUNTRY THE CANADIAN SECURITIES ADMINISTRATORS PROPOSED THAT CERTAIN LARGE FOREIGN COMPANIES MAKING INTERNATIONAL STOCK OFFERINGS BE ALLOWED TO FILE THEIR HOMECOUNTRY PROSPECTUS WITH CANADIAN REGULATORS CANADA AND THE US ALREADY HAVE A FASTTRACK FILING SYSTEM FOR SOME ISSUERS TO QUALIFY UNDER THE PROPOSED POLICY WHICH COULD GO INTO EFFECT AS SOON AS OCTOBER THE CSA SAID A FOREIGN COMPANY MUST HAVE A MARKET CAPITALIZATION OF MORE THAN THREE BILLION CANADIAN DOLLARS US23 BILLION AND MAKE NO MORE THAN 10 OF ITS INTERNATIONAL OFFERING IN CANADA AMONG OTHER CONDITIONS WILLIAM BRAITHWAITE A SECURITIES LAWYER WITH STIKEMAN ELLIOT IN TORONTO SAID FOREIGN COMPANIES OFTEN OVERLOOK CANADA BECAUSE THE SIZE OF THE MARKET DOESN'T WARRANT THE EFFORT REQUIRED TO SELL STOCK UNDER THE NEW POLICY FOREIGN CONCERNS HAVE A BETTER INCENTIVE TO SELL STOCK IN CANADA BECAUSE THEY WILL SAVE TIME AND MONEY HE SAID THE CSA SAID IT DRAFTED THE POLICY AS A RESULT OF REQUESTS FROM THE CANADIAN SECURITIES INDUSTRY 9308230097 930823 WHO'S NEWS BIOGEN INC BIOGEN INC CAMBRIDGE MASS TIMOTHY M KISH WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF FINANCE OF THIS BIOTECHNOLOGY COMPANY IN ITS REALIGNMENT TO MOVE FROM A RESEARCHER TO A DRUG PRODUCER AND MARKETER MR KISH CORPORATE CONTROLLER SINCE 1986 SUCCEEDS KENNETH M BATE NAMED VICE PRESIDENT OF MARKETING AND SALES IRVIN D SMITH FORMER GENERAL MANAGER OF BIOGEN'S BIOFERON JOINT VENTURE WAS NAMED VICE PRESIDENT OF QUALITY ASSURANCE AND DRUG DEVELOPMENT LAWRENCE S DANIELS PRESIDENT OF MARKETING SINCE 1991 WAS NAMED VICE PRESIDENT OF STRATEGIC PLANNING A NEWLY CREATED POSITION 9308230096 930823 WHO'S NEWS PETROLEUM HELICOPTERS INC PETROLEUM HELICOPTERS INC HOUSTON CARROLL W SUGGS WAS ELECTED SOLE CHIEF EXECUTIVE OFFICER OF THIS HELICOPTER COMPANY MS SUGGS 53 YEARS OLD HAD SHARED THE JOB WITH A BYRON ELLIOTT 60 WHO WILL SERVE AS A CONSULTANT TO THE COMPANY MR ELLIOTT WILL RETAIN HIS SEAT ON THE BOARD 9308230095 930823 WHO'S NEWS MAXUM HEALTH TAPS ADVISER DRUMWRIGHT FOR PRESIDENT AND CEO DALLAS DOUGLAS L DRUMWRIGHT A PRINCIPAL OF THE MANAGEMENT CONSULTING FIRM OF ALPHA PARTNERS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAXUM HEALTH CORP A STRUGGLING MEDICAL DIAGNOSTIC IMAGING COMPANY MR DRUMWRIGHT 47 YEARS OLD HAS ADVISED THE COMPANY ON A PROPOSED RESTRUCTURING SINCE MAY WHEN WILLIAM L MACKNIGHT 41 STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AFTER RESIGNING AS CHAIRMAN A MONTH EARLIER THE COMPANY SAID IT NAMED CHARLES S MACK JR 41 ALSO A PRINCIPAL OF ALPHA TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT MAXUM HAS BEEN GRAPPLING WITH A BUSINESS DOWNTURN RESULTING IN THREE CONSECUTIVE QUARTERLY LOSSES AND HAS BEEN BARRED FROM FURTHER BORROWING UNDER ITS REVOLVING CREDIT LINE 9308230094 930823 WHO'S NEWS AMERICAN EXPRESS TAPS SKILLERN RIESE FOR POSTS NEW YORK AMERICAN EXPRESS TRAVEL RELATED SERVICES CO A UNIT OF AMERICAN EXPRESS CO ANNOUNCED TWO SENIOR MANAGEMENT APPOINTMENTS FRANK SKILLERN 57 YEARS OLD WAS NAMED PRESIDENT OF THE CONSUMER CARD GROUP US RESPONSIBLE FOR THE AMERICAN EXPRESS PERSONAL GOLD AND PLATINUM CARDS SUCCEEDING KENNETH J CHENAULT 42 RECENTLY PROMOTED TO PRESIDENT OF TRAVEL RELATED SERVICES USA MR SKILLERN WAS PRESIDENT OF THE CONSUMER LENDING GROUP WHICH MARKETS THE OPTIMA CARD PHILLIP J RIESE 43 WAS APPOINTED TO THE NEWLY CREATED POSITION OF PRESIDENT OF THE CARDMEMBER FINANCIAL SERVICES GROUP WHICH WILL INCLUDE THE CONSUMER LENDING GROUP HE WAS EXECUTIVE VICE PRESIDENT CHARGE CARD MARKETING MR SKILLERN AND MR RIESE WILL REPORT TO MR CHENAULT 9308230093 930823 FISHERMEN LIFT ALASKA BLOCKADE OF TANKER LANES PROTEST WAS RESULT OF ANGER AGAINST EXXON EFFECTS OF '89 VALDEZ OIL SPILL BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL ALASKAN FISHERMEN LIFTED THEIR THREEDAY BLOCKADE OF OIL TANKER LANES CALLED TO DRAMATIZE THEIR INCREASING EXASPERATION OVER THE LINGERING EFFECTS OF THE EXXON VALDEZ OIL SPILL AND EXXON CORP'S ALLEGED FAILURE TO DEAL WITH THEM BEGINNING LATE FRIDAY ANGRY FISHERMEN SET UP A FLOATING PICKET LINE OF ABOUT 100 FISHING BOATS AND OTHER VESSELS BLOCKING TANKERS HEADING FOR THE TRANSALASKA PIPELINE'S LOADING COMPLEX IN PRINCE WILLIAM SOUND THE FISHERMEN WERE PROTESTING THE COLLAPSE OF SEVERAL KEY FISHING RUNS THIS YEAR WHICH THEY BLAME ON THE AFTEREFFECTS OF THE MARCH 1989 OIL SPILL FROM THE EXXON VALDEZ SUPERTANKER THE SHIP DUMPED 11 MILLION GALLONS OF OIL INTO THE SOUND THE FISHERMEN ARE ALSO UPSET AT THE SLOW PACE ON HUNDREDS OF CIVIL LAWSUITS BROUGHT AGAINST EXXON SEEKING MILLIONS OF DOLLARS IN DAMAGES FROM THE SPILL THE FLOTILLA TURNED BACK AT LEAST SEVEN TANKERS OVER THE WEEKEND TEMPORARILY HALTING SHIPMENTS OF ALASKAN CRUDE AND RAISING CONCERNS THAT US OIL SUPPLIES AND PRICES MIGHT BE AFFECTED HOWEVER AFTER MEETINGS YESTERDAY WITH INTERIOR SECRETARY BRUCE BABBITT STATE OFFICIALS AND SEVERAL OIL COMPANY EXECUTIVES NONE OF THEM FROM EXXON THE FISHERMEN AGREED TO END THEIR BLOCKADE IN RETURN FISHERMEN SAID THE STATE AGREED TO CONSIDER THEIR REQUESTS FOR ECONOMIC ASSISTANCE AND MR BABBITT SAID HE WOULD PROD EXXON TO PICK UP THE PACE OF NEGOTIATIONS WITH FISHERMEN OVER THEIR DAMAGE CLAIMS MR BABBITT ALSO INDICATED THAT THE FEDERAL GOVERNMENT WOULD OVERHAUL THE WAY MONEY IS MANAGED FROM A SEPARATE 1 BILLION EXXON SETTLEMENT OF CERTAIN SPILL CLAIMS THAT PROCESS WAS SHARPLY CRITICIZED BY A GENERAL ACCOUNTING OFFICE STUDY SET FOR FORMAL RELEASE TODAY EXXON OFFICIALS COULDN'T BE REACHED TO COMMENT OVER THE WEEKEND ON FRIDAY EXXON ISSUED A STATEMENT REITERATING ITS VIEW THAT THERE IS NO EVIDENCE THAT THE SPILL IS STILL SIGNIFICANTLY AFFECTING WILDLIFE THE ISSUE DRAMATIZED HOW THE NATION'S WORST OIL SPILL CONTINUES TO REVERBERATE THE BLOCKADE'S IMMEDIATE CAUSE WAS THE RECENT FAILURE OF SEVERAL ONCELUCRATIVE FISHERIES IN THE SOUND INCLUDING THE MAINSTAY PINK SALMON RUN FISHERMEN WERE EXPECTING TO CATCH SOME 25 MILLION PINKS THIS YEAR NOW WITH THE RUN ALMOST OVER THEY'VE CAUGHT ONLY ABOUT 2 MILLION LAST YEAR'S PINK SALMON RUN WAS A BUST TOO THE ECONOMIC IMPACT OF THE POOR FISH RUNS HAS BEEN SEVERE CUTTING INCOMES OF MANY FISHERMEN THIS YEAR BY 90 AND FORCING MANY TO THE BRINK OF BANKRUPTCY FISHERMEN ARE CONVINCED THAT THE POOR RUNS ARE RELATED TO THE SPILL SCIENTISTS STILL DIFFER ON THE ISSUE HOWEVER AND LITTLE RESEARCH HAS BEEN DONE ON PINK SALMON SPECIFICALLY BUT WE'RE CONDUCTING THE RESEARCH WITH OUR NETS AND WE'RE DISCOVERING THAT SINCE THE SPILL THERE ARE NO FISH SAID FLOYD HUTCHENS A VETERAN PRINCE WILLIAM SOUND FISHERMAN WE'RE SAYING LET'S GET TO THE BOTTOM OF THIS LET'S FIGURE IT OUT AND IF IT'S THE SPILL LET'S DO SOMETHING ABOUT IT WE'RE DESPERATE THE FISHERMEN ALSO ACCUSED EXXON OF STALLING ON LAWSUIT SETTLEMENT NEGOTIATIONS WHICH MANY FISHERMEN NOW SEE AS THEIR ONLY HOPE OF ECONOMIC SURVIVAL THE COMPANY SETTLED LAWSUITS BROUGHT BY THE STATE AND FEDERAL GOVERNMENTS AS WELL AS FEDERAL CRIMINAL CHARGES FOR 1 BILLION HOWEVER HUNDREDS OF CIVIL LAWSUITS ARE STILL PENDING AGAINST EXXON AND PLAINTIFF ATTORNEYS SAY EXXON HAS THUS FAR DECLINED TO SERIOUSLY DISCUSS A SETTLEMENT ADDING TO THE FISHERMEN'S EXASPERATION IS THE NEW GAO STUDY WHICH FOUND EVIDENCE OF POSSIBLE CONFLICTS OF INTEREST POOR AUDITING CONTROLS AND OTHER PROBLEMS WITH THE WAY FEDERAL AND STATE BUREAUCRATS ARE SPENDING THE 1 BILLION SETTLEMENT THE STUDY ALSO FOUND THAT OF THE 240 MILLION SPENT THROUGH YEAR END 1992 ONLY ABOUT 19 MILLION WENT FOR WILDLIFE RESTORATION PROJECTS MOST OF THE REST WENT TO STATE AND FEDERAL AGENCIES FOR SPILL CLEANUP COSTS EXXON ITSELF GOT 40 MILLION AS REIMBURSEMENT FOR CERTAIN OF ITS SPILLRELATED COSTS 9308230092 930823 CREDIT RATINGS IBM'S DEBT RATING IS CUT BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS DEBT AND PREFERRED STOCK RATING OF INTERNATIONAL BUSINESS MACHINES CORP AND SEVERAL OF ITS UNITS CITING INCREASING OPERATING RISK AND LOWER PROFIT MARGINS ABOUT 28 BILLION IN DEBT AND SECURITIES WAS AFFECTED THE RATINGS CONCERN CITED IBM'S SECONDQUARTER 89 BILLION PRETAX RESTRUCTURING CHARGE RELATED TO PLANS TO CUT ABOUT 35000 JOBS BUT MOODY'S EXPRESSED CONCERN THAT THE CASH COSTS OF THE RESTRUCTURING WILL ADD TO THE ARMONK NY COMPANY'S FINANCIAL RISK MOODY'S ADDED THAT IBM'S FOCUS ON NONHARDWARE BUSINESSES SUCH AS SERVICES MAY NOT BE ABLE TO OFFSET THE PRECIPITOUS DECLINES IN IBM'S HARDWARE REVENUE AND OPERATING MARGINS MOODY'S DOWNGRADES COME ABOUT THREE WEEKS AFTER STANDARD & POOR'S CORP DOWNGRADED IBM'S DEBT RATING S&P CURRENTLY RATES IBM'S LONGTERM DEBT SINGLEA WE MAINTAIN A VERY OPEN AND CLOSE RELATIONSHIP WITH BOTH RATINGS AGENCIES AND THEY ARE AWARE OF THE STRONG ACTIONS WE ARE TAKING TO IMPROVE OUR FINANCIAL STRENGTH AN IBM SPOKESMAN SAID IN RESPONSE TO MOODY'S DOWNGRADE 9308230091 930823 FINANCING BUSINESS UNITED COMPANIES FINANCIAL CORP UNITED COMPANIES FINANCIAL CORP SAID IT SOLD 130 MILLION OF MORTGAGEBACKED SECURITIES IN A PUBLIC OFFERING THE FINANCE AND INSURANCE COMPANY SAID PROCEEDS OF THE OFFERING WILL BE USED TO FINANCE ITS EXPANDING MORTGAGELENDING OPERATION THE SECURITIES WERE PRICED TO YIELD 6025 AT MATURITIES RANGING FROM 37 TO 240 MONTHS THE OFFERING WAS UNDERWRITTEN BY PRUDENTIAL SECURITIES INC THE SECURITIES WERE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC STANDARD & POOR'S CORP AND FITCH INVESTORS SERVICE INC THE COMPANY SAID IN BATON ROUGE LA 9308230090 930823 BUSINESS BRIEFS AIR METHODS CORP A PROVIDER OF EMERGENCY AIRLIFT SERVICES AND SYSTEMS RECEIVED AN ORDER TO PROVIDE INTERIOR CABINETS FOR FIVE MEDICAL EVACUATION HELICOPTERS IN THE SWEDISH ARMY TERMS OF THE PACT WEREN'T DISCLOSED FLEMING COS A GROCERY WHOLESALER ACQUIRED A FOODDISTRIBUTION CENTER IN GARLAND TEXAS FROM RANDALL'S FOOD MARKETS INC FOR 28 MILLION FIDELITY SAVINGS BANK FORMED A SAVINGSBANK HOLDING COMPANY FIDELITY BANCORP INC TO INCREASE OPERATING FLEXIBILITY AND ALLOW FOR DIVERSIFICATION AND EXPANSION MOVES CHESEBROUGHPOND'S USA A UNIT OF UNILEVER NV WILL SELL US AND PUERTO RICAN RIGHTS TO FIVE FRAGRANCE NAME BRANDS AND THE PRINCE MATCHABELLI TRADE NAME TO PARFUM DE COEUR LTD A DARIEN CONN FRAGRANCE MAKER TERMS OF THE PACT WEREN'T DISCLOSED STATE AUTO FINANCIAL CORP'S PRINCIPAL SHAREHOLDER STATE AUTOMOBILE INSURANCE CO COMPLETED THE 50 MILLION PURCHASE OF MILBANK INSURANCE CO FROM ROYAL GROUP INC A UNIT OF BRITAIN'S ROYAL INSURANCE HOLDINGS PLC 9308230089 930823 CITIZENS INC TO POST SECONDPERIOD NET ABOVE '92 FIGURE AND ANALYST ESTIMATES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL CITIZENS INC EXPECTS TO REPORT SECONDQUARTER NET INCOME OF SEVEN CENTS OR EIGHT CENTS A SHARE SLIGHTLY EXCEEDING ANALYSTS' ESTIMATES HAROLD E RILEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NET ROSE TO 12 MILLION TO 13 MILLION FROM THE YEAREARLIER'S 848000 OR FIVE CENTS A SHARE AFTER AN ACCOUNTING CHANGE THAT REDUCED PROFIT 398000 OR TWO CENTS A SHARE HE SAID REVENUE IS ESTIMATED TO HAVE RISEN 31 TO 97 MILLION FROM 74 MILLION HE ADDED IN AN INTERVIEW ANALYSTS HAD EXPECTED THE AUSTIN TEXAS COMPANY TO POST NET OF ABOUT SIX CENTS A SHARE SAID MARK OLIVER CHIEF FINANCIAL OFFICER MR RILEY ATTRIBUTED THE LIFE INSURANCE HOLDING COMPANY'S IMPROVED RESULTS TO INCREASED SALES OF ITS ORDINARY WHOLE LIFE INSURANCE POLICIES TO CUSTOMERS WITH HIGH NET WORTH HE SAID THE COMPANY EXPECTS TO EARN A 15 PROFIT ON THE POLICIES' PREMIUMS COMPARED WITH OTHER COMPANIES' 7 TO 8 RETURN FOR THE FIRST HALF CITIZENS EXPECTS TO REPORT NET OF 22 MILLION OR 13 CENTS A SHARE UP FROM YEAREARLIER'S 14 MILLION OR 10 CENTS A SHARE AFTER A CHARGE OF 687000 OR FOUR CENTS A SHARE FOR THE ACCOUNTING CHANGE REVENUE ROSE 34 TO ABOUT 18 MILLION FROM 134 MILLION MR RILEY SAID ANALYSTS HAD EXPECTED THE COMPANY TO POST NET OF 10 CENTS TO 11 CENTS A SHARE FOR THE FIRST HALF MR OLIVER SAID ALTHOUGH ABOUT 95 OF CITIZENS' POLICIES ARE SOLD OVERSEAS MR RILEY SAID THE COMPANY ISN'T AFFECTED BY FOREIGNEXCHANGE RATE FLUCTUATIONS BECAUSE PAYMENT IS MADE IN DOLLARS THROUGH CHECKS DRAWN ON US BANKS CITIZENS' ASSETS AT THE END OF THE QUARTER WERE 121 MILLION ABOUT 48 HIGHER THAN THE 82 MILLION OF A YEAR AGO MR RILEY SAID INVESTED ASSETS INCREASED 41 TO 79 MILLION FROM 56 MILLION MR RILEY SAID THE HIGHER BUSINESS VOLUME AN INCREASE IN PREMIUM RESERVES AND THE ACQUISITION OF FIRST CENTENNIAL CORP A LIFE INSURANCE HOLDING COMPANY BASED IN FORT COLLINS COLO BOOSTED ASSETS MR RILEY SAID THE COMPANY IS NEGOTIATING WITH SEVERAL PROSPECTIVE ACQUISITION TARGETS WHICH HE WOULDN'T IDENTIFY WE'RE LOOKING FOR WHOLE LIFE AND OTHER LIFE INSURANCE COMPANIES THAT FIT THE SAME TYPE OF MOLD WE'RE IN HE SAID MR RILEY SAID CITIZENS TRIES TO COMPETE BY FOCUSING ON TWO PROFITABLE NICHES THAT HE SAID COMPETITORS HAVEN'T SOUGHT AS AGGRESSIVELY THE INTERNATIONAL MARKET AND WHOLE LIFE INSURANCE HE SAID THE COMPANY BUCKED THE TREND TOWARD TERM ANNUITY OR UNIVERSAL LIFE POLICIES CITIZENS IS MAKING A PUSH TO CAPTURE MORE BUSINESS IN ITS OVERSEAS MARKETS ESPECIALLY THE LUCRATIVE PACIFIC RIM AND UNTAPPED LATIN AMERICAN MARKETS MR RILEY SAID HE ADDED THAT REVENUE SHOULD CONTINUE TO GROW AT A RATE OF ABOUT 20 TO 30 A YEAR AS INTEREST RATES CHANGE MR RILEY SAID THE COMPANY HAS TO REVAMP ITS PORTFOLIO TO KEEP ITS PROFIT MARGINS INTACT 9308230088 930823 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN CHINA'S GOVERNMENT LAUNCHED A HIGHPROFILE CAMPAIGN AGAINST CORRUPTION SAYING KICKBACKS AND BRIBES TO PUBLIC OFFICIALS WERE UNDERMINING ECONOMIC REFORM AND STIRRING ANGER AMONG THE PEOPLE THE HEAD OF THE COMMUNIST PARTY'S DISCIPLINE INSPECTION COMMISSION ORDERED OFFICIALS AT A HIGHLEVEL MEETING TO STEP UP THEIR EFFORTS TO FIGHT GRAFT CORRUPTION HAS FLOURISHED IN THE 14 YEARS THAT CHINA HAS PERMITTED SOME FREE MARKETS WITH GROWING NUMBERS OF GOVERNMENT AND PARTY OFFICIALS DEMANDING FAVORS FOR ISSUING ESSENTIAL PERMITS BILLIONS OF DOLLARS IN LOANS HAVE BEEN AUTHORIZED ILLEGALLY SIPHONING FUNDS FROM HOUSING AND INFRASTRUCTURE PROJECTS AND MUCH OF CHINA'S HIGH ECONOMIC GROWTH HAS BEEN FUELED BY MISDIRECTED STATE FUNDS THE PEOPLE'S DAILY NEWSPAPER SAID RAMPANT SPENDING OF PUBLIC MONEY BY OFFICIALS HAS DIMINISHED TAX REVENUES AND TAKEN A DEEP BITE OUT OF THE TREASURY SEN CHARLES ROBB PREDICTED THE US WOULD LIFT ITS ECONOMIC EMBARGO ON VIETNAM BY YEAREND THE VIRGINIA DEMOCRAT WHO MET WITH VIETNAM'S PRIME MINISTER LAST WEEK PLANS TO MAKE A RECOMMENDATION ON THE ISSUE TO PRESIDENT CLINTON SEN ROBB IS THE FIRST SENIOR US OFFICIAL TO VISIT VIETNAM AND PREDICT A TIME FRAME FOR LIFTING THE EMBARGO FIRST IMPOSED AGAINST NORTH VIETNAM IN 1964 AND EXTENDED TO THE WHOLE COUNTRY AFTER THE VIETNAM WAR ENDED IN 1975 SEN ROBB SAID HANOI LOST A CHANCE TO SEND A POSITIVE SIGNAL TO WASHINGTON BY REFUSING TO LET HIM VISIT A PROMINENT JAILED VIETNAMESE DISSIDENT THAILAND PLANS TO GIVE FOREIGNERS GREATER ACCESS TO ITS STOCK MARKET WITH THE INTRODUCTION OF FOREIGN INVESTMENT TRUSTS IN OCTOBER WITH THE TRUSTS INVESTORS COULD BUY AND SELL WITHOUT LIMITS AND PAY ONLY THE LOCAL SHARE PRICE PLUS A SERVICE FEE REGULATORS WILL RULE ON THE PLAN IN 60 DAYS THEY ARE SEEKING TO SPREAD OWNERSHIP OF THE TRUSTS AMONG SEVERAL FINANCIAL INSTITUTIONS CURRENT RULES BAR FOREIGNERS FROM OWNING MORE THAN 49 OF MOST COMPANIES AND 25 OF BANKS AND FINANCE FIRMS FOR STOCKS IN DEMAND AFTER LIMITS ARE REACHED PRICE PREMIUMS CAN BE 20 TO 30 OTAR PATSATSIA A FORMER COMMUNIST PARTY OFFICIAL WAS ELECTED PRIME MINISTER BY GEORGIA'S PARLIAMENT FRIDAY ENDING A TWOWEEK GOVERNMENT CRISIS IN THE FORMER SOVIET REPUBLIC MR PATSATSIA 64 SUCCEEDED TENGIZ SIGUA WHO RESIGNED THIS MONTH WHEN PARLIAMENT REFUSED TO APPROVE THE NATIONAL BUDGET MR PATSATSIA PLEDGED THAT UNITING GEORGIA WOULD BE HIS GOVERNMENT'S MAIN TASK THE FORMER ENGINEER AND PLANT MANAGER WAS COMMUNIST PARTY CHIEF IN HIS NATIVE ZUGDIDI ZIMBABWE'S PRESIDENT THREATENED TO EXPEL WHITE CITIZENS WHO CLING TO WHAT HE CALLED RACIST ATTITUDES WHICH HE LABELED THE GREATEST ENEMY OF THE COUNTRY'S 105 MILLION BLACKS AT A RALLY IN GWANDA ROBERT MUGABE SAID THAT MANY WHITES STILL SAW BLACKS AS SECONDCLASS CITIZENS AND THAT WHITES WHO DON'T CHANGE WILL BE KICKED OUT THE ATTACKS FOLLOWED WEEKS OF ACRIMONY OVER GOVERNMENT PLANS TO SEIZE WHITEOWNED FARMS FOR RESETTLING PEASANTS SOME 4000 FARMERS MOST OF THEM WHITE OWN ABOUT A THIRD OF THE FARMLAND IN THE SOUTHERN AFRICAN COUNTRY FINLAND'S GOVERNMENT AGREED ON A 3243 BILLION BUDGET FOR 1994 THAT WILL CUT SPENDING BY 173 BILLION AND NARROW THE DEFICIT TO 6 OF GROSS DOMESTIC PRODUCT FROM AN ESTIMATED 9 THIS YEAR AMONG THE TARGETS OF SPENDING CUTS FOR 1994 WERE FUNDS FOR LOCAL AUTHORITIES UNEMPLOYMENT BENEFITS AND GOVERNMENT WAGES THE GOVERNMENT PROJECTED A 25 DROP IN GDP THIS YEAR A 1 RISE IN 1994 AND ACCELERATING GROWTH THEREAFTER EXPORTS ARE EXPECTED TO RISE 15 IN 1993 AND MORE THAN 10 IN 1994 INFLATION RUNNING AT A 2 ANNUAL RATE IS EXPECTED TO REMAIN LOW UNEMPLOYMENT NOW 20 IS PROJECTED AT 19 FOR 1994 A TOP BRITISH BUDGET OFFICIAL SAID CUTTING GOVERNMENT SPENDING IS EXTREMELY DIFFICULT BUT HE RULED OUT ANY SPENDING INCREASES NEXT YEAR MICHAEL PORTILLO CHIEF SECRETARY TO THE TREASURY WAS RESPONDING TO CHARGES BY SENIOR MEMBERS OF HIS CONSERVATIVE PARTY THAT THE GOVERNMENT WILL FACE A REBELLION IF IT RAISES TAXES IN ITS NOVEMBER BUDGET IN A SERIES OF ARTICLES IN A PARTY NEWSLETTER THEY SAID THE ONLY SOLUTION IS TO CUT SPENDING BUT MR PORTILLO SAID THE CRITICS UNDERESTIMATE THE DIFFICULTY OF THAT TASK THE GOVERNMENT WHICH FACES A 75 BILLION DEFICIT THIS YEAR IS WIDELY EXPECTED TO BROADEN THE VALUEADDED TAX ON GOODS THIS WILL COME IN ADDITION TO OTHER TAX INCREASES ANNOUNCED IN THE PREVIOUS BUDGET IN APRIL MR PORTILLO WHO LEADS TREASURY NEGOTIATIONS ON SPENDING WOULDN'T CONFIRM WHETHER THE GOVERNMENT WILL RAISE TAXES BRITAIN'S MERCHANDISE TRADE DEFICIT WITH COUNTRIES OUTSIDE THE EUROPEAN COMMUNITY WIDENED TO 117 BILLION IN JULY AS EXPORTS FELL BUT ECONOMISTS SAY THE COUNTRY'S TRADING POSITION IS GENERALLY IMPROVING A SURVEY IN SYRIA FOUND THAT WIFEBEATING IS THE MOST COMMON MEANS OF SETTLING DOMESTIC QUARRELS AND DIVORCE IS ON THE RISE IN SHENHU ON CHINA'S EAST COAST OFFICIALS ARE PITCHING A SEVENSTORY TOWER TO STORE CREMATED REMAINS SOME 60000 GRAVES HAVE BEEN DUG UP SINCE 1988 TO RECLAIM FARMLAND 9308230087 930823 ARMCO STEEL UNION AGREE TO EXTEND EXPIRED PACT PITTSBURGH ARMCO STEEL CO AND THE UNITED STEELWORKERS AGREED TO CONTINUE THEIR INDEFINITE EXTENSION OF A LABOR PACT THAT EXPIRED ON JULY 31 THE PACT WHICH WAS EXTENDED AFTER THE EXPIRATION DATE COVERS 2200 WORKERS AT ARMCO STEEL WHICH IS OWNED BY ARMCO INC AND KAWASAKI STEEL CORP THE TWO SIDES ALSO SAID THEY AGREED TO CREATE A JOINT TASK FORCE TO HELP REACH AN AGREEMENT ON WORKFORCE RESTRUCTURING FOR THE COMPANY'S ASHLAND KY PLANT AFTER THE TASK FORCE COMPLETES ITS WORK CONTRACT TALKS WILL RESUME THEY SAID A COMPANY SPOKESMAN SAID THERE'S NO SPECIFIED TIME FRAME FOR THE TASK FORCE TO COMPLETE ITS WORK THE TWO SIDES ALSO HAVE AGREED THAT WHILE THE TASK FORCE STUDIES THE ISSUE THEY WON'T GIVE NOTICE OF TERMINATION OF THE CONTRACT TALKS 9308230086 930823 AUTOTOTE SAYS NET MORE THAN DOUBLED IN FISCAL 3RD QUARTER NEWARK DEL RIDING THE GROWTH OF OFFTRACK BETTING AND LOTTERIES AUTOTOTE CORP A PRODUCER AND OPERATOR OF WAGERING AND LOTTERY EQUIPMENT SAID IT EXPECTS TO REPORT NET INCOME FOR THE FISCAL THIRD QUARTER WAS WELL OVER 3 MILLION MORE THAN DOUBLE ITS YEAREARLIER EARNINGS LORNE WEIL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EARNINGS HAVE STEADILY GROWN FOR THE PAST SEVEN OR EIGHT QUARTERS IN AN INTERVIEW HE SAID NET FOR THE QUARTER ENDED JULY 31 WOULD BE MORE THAN 3 MILLION ON REVENUE OF MORE THAN 20 MILLION COMPARED WITH YEAREARLIER NET OF 14 MILLION ON REVENUE OF 10 MILLION THE COMPANY DIDN'T PROVIDE PERSHARE ESTIMATES SHARES OUTSTANDING WERE RECENTLY INCREASED TO MORE THAN 16 MILLION FROM 75 MILLION INCLUDING A 3FOR2 STOCK SPLIT IN JUNE AND A PUBLIC OFFERING OF THREE MILLION SHARES IN THE SPRING FOR THE FISCAL YEAR ENDING IN OCTOBER MR WEIL SAID HE EXPECTS REVENUE TO COMFORTABLY EXCEED 80 MILLION COMPARED WITH FISCAL 1992 REVENUE OF 428 MILLION ANALYSTS' ESTIMATES FOR OUR NET INCOME ARE BETWEEN 9 MILLION AND 10 MILLION AND I FEEL WE SHOULD BE ABLE TO ACHIEVE THAT MR WEIL SAID IN FISCAL 1992 AUTOTOTE EARNED 51 MILLION OR 102 A SHARE AND MR WEIL PREDICTED THAT EARNINGS FOR FISCAL 1994 WOULD BE VERY SIGNIFICANTLY HIGHER THAN THIS YEAR'S THE OVERWHELMING MAJORITY OF THE COMPANY'S EARNINGS CAN BE ATTRIBUTED TO ITS LONGTERM CONTRACTS WITH PRIVATE ENTERPRISES AND STATES THAT OFFER OFFTRACK BETTING MR WEIL SAID AUTOTOTE HOLDS FIVEYEAR CONTRACTS WITH MANY OFFTRACK BETTING OPERATIONS RECEIVING A PERCENTAGE OF THE HANDLE OR THE AMOUNT THAT IS BET HE NOTED THAT GAMING AND WAGERING BUSINESS MAGAZINE RECENTLY SHOWED A 13 RISE IN GROSS REVENUE FOR OFFTRACK BETTING FROM 1992 TO 1991 WHILE OTHER TYPES OF GAMBLING DECLINED IT'S MORE CONVENIENT TO GO TO AN OTB OFFICE 10 MINUTES FROM YOUR HOUSE THAN A TRACK AN HOUR WAY MR WEIL EXPLAINED AND OFFTRACK YOU HAVE A MENU OF RACES FROM TRACKS ALL OVER THE COUNTRY TO CHOOSE FROM 9308230085 930823 MARKETING & MEDIA BOSTON GLOBE EMPLOYEES VOTE DOWN CONTRACT AGAIN BOSTON BOSTON GLOBE EMPLOYEES ASSOCIATION MEMBERS REJECTED FOR A SECOND TIME WHAT THE NEWSPAPER CALLED ITS FINAL OFFER FOR A CONTRACT THE UNION WHICH HAS 1170 MEMBERS VOTED 541363 THURSDAY TO REJECT THE THREEANDAHALFYEAR CONTRACT PROPOSAL PARTS OF WHICH ALREADY HAVE BEEN IMPOSED UNILATERALLY BY THE BOSTON GLOBE THE VOTE CAME AS THE US DEPARTMENT OF JUSTICE APPROVED NEW YORK TIMES CO'S PENDING 11 BILLION PURCHASE OF THE GLOBE'S PARENT AFFILIATED PUBLICATIONS INC SAYING IT WON'T HURT INDUSTRY COMPETITION OR VIOLATE ANTITRUST LAWS ASSOCIATION PRESIDENT ROBERT JORDAN SAID THE MEMBERSHIP VOTE WAS A REJECTION OF CONCESSIONS SOUGHT BY THE NEWSPAPER INCLUDING PAYING LOWER WAGES FOR SOME NEW STAFF AND CONTRACTING OUT WORK HE ALSO CITED THE COMPANY'S LEVEL OF HEALTHCARE CONTRIBUTIONS GLOBE SPOKESMAN RICHARD P GULLA CALLED THE VOTE VERY DISAPPOINTING AND SAID THE PACKAGE WAS ONE OF THE BEST IN THE INDUSTRY AND IN THIS MARKETPLACE WITH ITS SLUGGISH ECONOMY THE OFFER WAS AN AMENDED PROPOSAL OF ONE THAT EMPLOYEES REJECTED IN SEPTEMBER THE LATEST CONTRACT EXPIRED DECEMBER 1990 MR JORDAN SAID THE UNION WOULD SEEK TO REOPEN TALKS MR GULLA SAID HOWEVER THAT MANAGEMENT WOULD CONFER WITH US MEDIATORS ABOUT ITS NEXT STEP 9308230084 930823 CORRECTIONS & AMPLIFICATIONS MARK LEVY A MEMBER OF THE BELLEVILLE AREA COLLEGE SCHOOL BOARD IS AN ATTORNEY PRACTICING IN COLLINSVILLE ILL IN A PAGEONE ARTICLE FRIDAY ON EFFORTS TO SAVE STATE COMMUNITY COLLEGE IN EAST ST LOUIS ILL HE WAS INCORRECTLY REFERRED TO AS A BELLEVILLE ATTORNEY DELTA QUEEN STEAMBOAT CO WHICH DOESN'T OFFER GAMBLING DISPUTES ITS INCLUSION IN A TABLE OF GAMBLINGRELATED STOCKS THAT ACCOMPANIED TUESDAY'S HEARD ON THE STREET COLUMN ALTHOUGH THE 1992 PROSPECTUS SAYS THE STEAMBOAT CRUISE COMPANY IS EXPLORING OPPORTUNITIES WITH POTENTIAL GAMING OPERATORS DELTA QUEEN NOW SAYS THAT SUCH TALKS AREN'T EXPECTED TO BEAR FRUIT MANNESMANN AG A GERMAN INDUSTRIAL CONCERN HAD A NET LOSS OF 467 MILLION MARKS 2781 MILLION IN THE FIRST HALF OF 1993 IN FRIDAY'S WORLD MARKETS COLUMN THE AMOUNTS WERE MISSTATED AS BILLIONS SEE WORLD MARKETS TOKYO SHARES DROP AS ECONOMIC MEETING YIELDS LITTLE NEWS LONDON STOCKS FALL TO PROFITTAKING WSJ AUG A LEGAL BEAT COLUMN IN AUG 11 EDITIONS INCORRECTLY REPORTED THAT ONLY ONE WOMAN SERVED ON A MINNESOTA TASK FORCE INVESTIGATING SEXUAL ABUSE THE ARTICLE INVOLVING A SUIT AGAINST GLAMOUR MAGAZINE SHOULD HAVE SAID THERE WERE OTHER WOMEN ON THE TASK FORCE BUT ONLY ONE FEMALE LAW STUDENT OR LAWYER EFFICIENT NETWORKS INC MAKES ASYNCHRONOUS TRANSFER MODE PRODUCTS WHICH ALLOW INCOMPATIBLE VOICE VIDEO AND DATA TO OPERATE ON THE SAME NETWORK A WHO'S NEWS ITEM FRIDAY INCORRECTLY DESCRIBED THE COMPANY'S BUSINESS 9308230083 930823 FEDERAL BUDGET DEFICIT NARROWED DURING JULY WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED TO 3958 BILLION IN JULY FROM 4315 BILLION A YEAR EARLIER THE TREASURY SAID IN JUNE THE GOVERNMENT HAD A SURPLUS OF 111 BILLION SO FAR THIS FISCAL YEAR THE DEFICIT IS RUNNING WELL BELOW THE PRIOR YEAR'S FOR THE FIRST 10 MONTHS OF FISCAL 1993 THE DEFICIT WAS 24017 BILLION COMPARED WITH 27091 BILLION DURING THE COMPARABLE PERIOD OF FISCAL 1992 THE FISCAL YEAR ENDS SEPT 30 RECEIPTS IN JULY TOTALED 8064 BILLION COMPARED WITH 7905 BILLION A YEAR EARLIER AND 12859 BILLION IN JUNE A MONTH WHEN MANY TAX PAYMENTS BECOME DUE OUTLAYS TOTALED 12022 BILLION LAST MONTH COMPARED WITH 12220 BILLION A YEAR EARLIER AND 11749 BILLION IN JUNE THE GOVERNMENT PAID 1792 BILLION IN INTEREST ON THE FEDERAL DEBT IN JULY THE RESOLUTION TRUST CORP THE AGENCY THAT SELLS THE ASSETS OF FAILED SAVINGS AND LOANS GENERATED 219 BILLION IN RECEIPTS IN JULY UP FROM 199 BILLION IN JUNE 9308230082 930823 JURY AWARDS 113 MILLION IN FATAL GM TRUCK FIRE KANSAS CITY MO AP A FEDERAL COURT JURY TOOK LESS THAN THREE HOURS TO RETURN AN 113 MILLION JUDGMENT AGAINST GENERAL MOTORS CORP FOR A TRUCK FIRE THAT KILLED A WOMAN JURORS DECIDED FRIDAY THAT GASOLINE SPILLING FROM A DEFECTIVE FUEL PUMP CAUSED A 1985 CHEVROLET S10 BLAZER TO EXPLODE ON FEB 23 1990 THEY ALSO RULED THAT THE EXPLOSION NOT A PRECEDING HEADON COLLISION KILLED BEVERLY SUE GARNER OF BEVIER THE LAWSUIT FILED AGAINST GM ON BEHALF OF MS GARNER'S TWO TEENAGE SONS CLAIMED GM KNEW THE FUEL PUMP WAS DEFECTIVE FOR THE FIRST TIME IN A CASE AGAINST GM JURORS WERE SHOWN A 1973 COMPANY REPORT THAT ESTIMATED THAT FOR GM IT WOULD BE WORTH APPROXIMATELY 220 PER NEW MODEL AUTO TO PREVENT A FUELFED FIRE IN ALL ACCIDENTS GM ATTORNEYS DECLINED TO COMMENT AFTER THE VERDICT THEY HAD ARGUED THAT THE FIRE WAS CAUSED BY FLUIDS FROM THE OTHER CAR INVOLVED IN THE CRASH 9308230081 930823 JOBS IN NEW YORK CITY INCREASED LAST MONTH NEW YORK SPURRED BY STRONG GROWTH IN THE PRIVATE SECTOR NEW YORK CITY REPORTED ITS FIRST MONTHLY INCREASE IN JOBS SINCE JANUARY SEASONALLY ADJUSTED EMPLOYMENT ROSE BY 6700 JOBS IN JULY ACCORDING TO CITY COMPTROLLER ELIZABETH HOLTZMAN AFTER REGISTERING A JOB INCREASE OF 7500 IN JANUARY THE CITY HAD LOST AN ESTIMATED 17500 JOBS THROUGH THE END OF JUNE MOST OF JULY'S INCREASE 4800 JOBS ORIGINATED IN THE PRIVATE SECTOR THE REMAINING 1900 REPRESENT AN INCREASE IN FEDERAL STATE AND LOCAL GOVERNMENT JOBS THE COMPTROLLER SAID FOR THE YEAR SO FAR THE CITY SHOWS A NET 1500 INCREASE IN PRIVATESECTOR JOBS BUT AN OVERALL NET DECLINE OF 3300 9308230080 930823 HIGHYIELDING MORTGAGE BONDS RECEIVE NOTICE IMAGE AND YIELD APPEAL TO JUNKBOND BUYERS BUT CALIFORNIA LOOMS BY ABBY L SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK FOR INVESTORS SEEKING THE HIGH RETURNS OF CORPORATE JUNK BONDS THERE'S A NEW KID ON THE BLOCK A TYPE OF SECURITY BACKED BY JUMBO MORTGAGES THE NEW SECURITIES HOWEVER HAIL FROM A NEIGHBORHOOD UNFAMILIAR TO MANY OF THE CORPORATEBOND INVESTORS THEY ATTRACT THIS WORRIES SOME THAT THE NEWCOMERS MAY BE TAKING ON MORE RISK THAN THEY REALIZE JUMBO MORTGAGES ARE THOSE LARGER THAN 203000 AT THAT SIZE THEY DON'T CARRY CERTAIN GUARANTEES AFFORDED SMALLER MORTGAGES THUS HIGHYIELD CLASSES OF JUMBOBACKED BONDS SOMETIMES RECEIVE CREDIT RATINGS SIMILAR TO THOSE OF CORPORATE JUNK BONDS THOUGH THEY HAVE AN IMAGE AS LESS RISKY THAN JUNK BONDS BECAUSE THEY ARE BACKED BY HARD ASSETS HOUSES HOWEVER AS MUCH AS 70 OF JUMBOMORTGAGE SECURITIES ARE BACKED BY LOANS ON HOUSES IN CALIFORNIA WHERE A LINGERING RECESSION COULD HAUNT THEM THE MARKET FOR SUBORDINATES A PARTICULARLY HIGHYIELDING CLASS HAS EXPLODED FROM PRACTICALLY NOTHING A YEAR AGO TO A TOTAL MARKET VALUE OF NEARLY 8 BILLION THESE SUBORDINATE CLASSES HOWEVER ARE THE MOST AT RISK BECAUSE THEY ARE THE FIRST TO ABSORB LOSSES FROM LOANS THAT FORECLOSE BUT INVESTORS AREN'T SHYING AWAY THE REASON YIELDS THAT BEAT THE 10YEAR TREASURY BY 35 PERCENTAGE POINTS OR MORE DEBT TRADERS USE THE MONICKER PRIVATE LABEL TO DESCRIBE JUMBOMORTGAGE SECURITIES BECAUSE LARGER MORTGAGES DON'T CARRY THE BACKING OF EITHER THE FEDERAL HOME LOAN MORTGAGE CORP OR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THESE TWO GOVERNMENTCHARTERED ENTITIES FREDDIE MAC AND FANNIE MAE MAKE A BUSINESS OF BUYING MORTGAGES AND REPACKAGING THEM FOR SALE AS SECURITIES MANY BUYERS OF THESE PRIVATELABEL ISSUES TODAY ARE MORE FAMILIAR WITH JUNK BONDS THAN WITH MORTGAGE SECURITIES AND SOME BELIEVE PRIVATELABEL BONDS ARE SAFER WHEN YOU OWN CORPORATE DEBT THERE ARE SOME EVENTS BEYOND YOUR CONTROL THAT CAN SINK YOU SAID JIM CALMUS A PORTFOLIO MANAGER AT MASSACHUSSETTS FINANCIAL SERVICES WHICH HAS PURCHASED SOME PRIVATELABEL MORTGAGE PAPER WITH MORTGAGES THE BONDS ARE BACKED BY HARD ASSETS AND RELY ON THE BEHAVIOR OF A LARGE GROUP OF PEOPLE HE SAID EVEN IF THE CALIFORNIA REALESTATE MARKET IS TERRIBLE IT'S NOT LIKE TOMORROW EVERYBODY TURNS THEIR KEYS INTO THE BANK DENNIS KRAFT AN INVESTMENT OFFICER AT TRAVELERS CORP PREFERS TO BUY THE SENIOR INVESTMENTGRADE SLICE OF PRIVATELABEL BONDS FOR THOSE BONDS THE QUESTION OF CALIFORNIA'S TROUBLES IS MINIMIZED BY THE LAYER OF CREDIT SUPPORT PROVIDED BY THE SUBORDINATE CLASSES ALSO KNOWN AS THE FIRST LOSS PIECES LOWER DOWN IN THE CREDIT SPECTRUM YOU INCUR MORE RISK SAID MR KRAFT THE QUESTION IS ARE YOU BEING COMPENSATED ONE INVESTOR WHO ISN'T SURE IS JIM FELLOWS A VAN KAMPEN MERRITT INVESTMENT ADVISORY ANALYST WHOSE FOCUS IS MAINLY HIGHYIELD CORPORATE BONDS IT SEEMS TO ME THAT THE DECLINE IN REALESTATE VALUES IN CALIFORNIA COULD BE HIGHER THAN WHAT PEOPLE ORIGINALLY EXPECTED MR FELLOWS SAID VAN KAMPEN MERRITT IS CONSIDERING BUYING SUBORDINATE PRIVATELABEL MORTGAGE SECURITIES AS A HIGHYIELD SUBSTITUTE BUT HAS REFRAINED SO FAR FOR VARIOUS REASONS AMONG THEM THE CONCERN OVER CALIFORNIA'S ECONONY ANOTHER ISSUE IS LIQUIDITY SAID MR FELLOWS WHILE PUBLIC CORPORATE HIGHYIELD BONDS ARE TYPICALLY ISSUED IN CHUNKS OF 100 MILLION OR MORE A SUBORDINATE CLASS OF A PRIVATELABEL MORTGAGE SECURITY MIGHT RANGE FROM A MERE 5 MILLION TO 15 MILLION THE SMALLER SIZE LIMITS THE NUMBER OF POTENTIAL BUYERS SHOULD AN INVESTOR CHOOSE TO TRADE OUT OF A BOND HE NOTED CREDITRATING AGENCIES HAVE TAKEN NOTE OF THESE CONCERNS EARLIER THIS YEAR STANDARD & POOR'S CORP BEGAN TO MAKE ADJUSTMENTS IN ITS ANALYSIS OF PRIVATELABEL SECURITIES WITH HEAVY CONCENTRATIONS OF CALIFORNIA LOANS SAID JAYME LAURASH AN S&P DIRECTOR THERE IS A LOT OF CONCERN IN THE MAKETPLACE ABOUT IT AS THERE PROBABLY SHOULD BE MR LAURASH SAID IN A REPORT LAST WEEK MOODY'S INVESTORS SERVICE INC DESCRIBED CALIFORNIA AS WEAK AND GETTING WEAKER AND SAID SOME SUBORDINATE BONDS BACKED BY SOUTHERN CALIFORNIA LOANS COULD SUFFER LOSSES OF PRINCIPAL AND INTEREST WHICH WOULD RESULT IN RATINGS DOWNGRADES THE SECURITIES MOST AFFECTED THE MOODY'S SAID WOULD CONTAIN LOANS ORIGINATED WHEN SOUTHERN CALIFORNIA'S HOME PRICES PEAKED IN 1989 AND 1990 THE STATE'S TROUBLES ALREADY HAVE CONTRIBUTED TO RECENT DOWNGRADES OF 25 PRIVATELABEL ISSUES HOWEVER MOODY'S NOTED THAT ANY LOSSES WOULD BE LESSENED BY THE FACT THAT MOST POOLS HEAVY IN CALIFORNIA MORTGAGES CONTAIN LOANS ORIGINATED ACROSS THE STATE MOODY'S ALSO NOTED THE CONTINUING EFFECT OF DEFENSERELATED CUTBACKS MANY OF WHICH HAVE AFFECTED HIGHERPAID WORKERS IN THE CALIFORNIA REALESTATE MARKET DEFENSE CUTS HAVE CONTRIBUTED TO HOMEPRICE DECLINES SINCE 1990 RANGING FROM 3 FOR INEXPENSIVE HOMES THOSE PRICED LESS THAN 157000 TO 22 FOR HIGHERPRICED HOMES THOSE MORE THAN 222000 THE MORE EXPENSIVE HOMES ARE TYPICALLY PURCHASED WITH JUMBO MORTGAGES DESPITE SUCH STATISTICS HOWEVER MOODY'S IN ITS REPORT ASSURED INVESTORS THAT BONDS CARRYING INVESTMENTGRADE RATINGS AREN'T ON THE BRINK OF LOSING INTEREST OR PRINCIPAL THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9308230079 930823 INTERNATIONAL RUSSIAN OFFICIAL ACCUSED OF MISMANAGEMENT QUITS MOSCOW AP RUSSIA'S FOREIGN ECONOMIC RELATIONS MINISTER RESIGNED AFTER A PRESIDENTIAL PANEL ACCUSED HIM OF MISMANAGEMENT OFFICIALS SAID THE RESIGNATION OF SERGEI GLAZYEV COMES AMID A WIDENING CORRUPTION SCANDAL THAT HAS ALREADY LED TO THE DISMISSALS OF RUSSIA'S SECURITY MINISTER AND DEPUTY INTERIOR MINISTER MR GLAZYEV DENIED THAT HIS MINISTRY VIOLATED PROCEDURES FOR GRANTING EXPORT LICENSES IN HIS LETTER OF RESIGNATION WHICH HAS YET TO BE ACCEPTED BY PRIME MINISTER VIKTOR CHERNOMYRDIN MR GLAZYEV BLAMED HIS PERSECUTION ON A POWER STRUGGLE BETWEEN MAFIATYPE STRUCTURES ALTHOUGH MR GLAZYEV IS CONSIDERED A YELTSIN ALLY HIS RESIGNATION HAS BEEN LINKED TO AN INVESTIGATION INTO ALLEGATIONS THAT VICE PRESIDENT ALEXANDER RUTSKOI A YELTSIN RIVAL MAINTAINED A SWISS BANK ACCOUNT WHERE MONEY FROM RUSSIAN COMPANIES WAS DEPOSITED MR RUTSKOI HAS DENIED ANY WRONGDOING PANEL MEMBERS SAID MILLIONS OF DOLLARS FROM THE SALE OF OIL AND OTHER RESOURCES HAVE FOUND THEIR WAY ABROAD BECAUSE OF THE LACK OF EXPORT CONTROLS AND IMPROPER LICENSING PROCEDURES THOSE MEASURES WOULD HAVE BEEN ENFORCED BY MR GLAZYEV'S MINISTRY 9308230078 930823 PARKOHIO SAYS RECOVERY IS COMPLETED SEES PROFIT FOR YEAR 25 SALES GAIN BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND PARKOHIO INDUSTRIES INC HAS COMPLETED ITS TURNAROUND AND IS BEGINNING TO EXPAND EDWARD F CRAWFORD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID SALES PROBABLY WILL TOP 150 MILLION THIS YEAR MR CRAWFORD SAID IN AN INTERVIEW UP MORE THAN 25 FROM 1198 MILLION IN 1992 AND THE COMPANY IS EXPECTED TO SHOW A 1993 PROFIT OF MORE THAN 5 MILLION AFTER RECORDING LOSSES IN FOUR OF THE FIVE PREVIOUS YEARS THE DIVERSIFIED MANUFACTURER RECENTLY INTRODUCED SEVERAL NEW PRODUCTS STRENGTHENED ITS TIES WITH MAJOR CUSTOMERS AND BEGAN STUDYING A NUMBER OF POSSIBLE ACQUISITIONS MR CRAWFORD SAID TOGETHER THESE MOVES WILL BOOST SALES TO MORE THAN 200 MILLION ANNUALLY BY 1995 AND POSSIBLY BEFORE THAT HE ADDED MR CRAWFORD BECAME CEO IN JUNE OF LAST YEAR AFTER SELLING A CLOSELY HELD HOUSEWARES CONCERN TO PARKOHIO IN EXCHANGE FOR 850000 SHARES OF PARKOHIO COMMON IF THE HOUSEWARES UNIT PERFORMS AS WELL AS HE EXPECTS IT TO MR CRAWFORD IN MID1994 WILL RECEIVE AN ADDITIONAL 1150000 SHARES BRINGING HIS HOLDINGS TO MORE THAN 25 OF PARKOHIO'S SHARES OUTSTANDING PARKOHIO WILL SHOW A PROFIT FOR THE THIRD QUARTER TRADITIONALLY THE SLOW PERIOD FOR BOTH ITS INDUSTRIAL AND CONSUMER PRODUCTS MR CRAWFORD SAID BUT HE DECLINED TO MAKE A MORE SPECIFIC FORECAST A YEAR AGO PARKOHIO HAD A LOSS OF 948000 OR 15 CENTS A SHARE IN THE THIRD QUARTER HE INDICATED THAT THIRDQUARTER NET WILL BE MODEST BUT THAT FOURTHQUARTER PROFIT WILL APPROACH THE 28 CENTS AND 27 CENTS A SHARE EARNED IN THIS YEAR'S FIRST AND SECOND PERIODS NET IN THE 1992 FOURTH QUARTER WAS TWO CENTS A SHARE FOR ALL 1992 PARKOHIO HAD A LOSS FROM CONTINUING OPERATIONS OF 77 MILLION OR 128 A SHARE AND A NET LOSS OF 345 MILLION OR 576 A SHARE AFTER A CHARGE FOR A CHANGE IN ACCOUNTING FOR POSTRETIREMENT BENEFITS PARKOHIO'S LARGEST BUSINESS IS PRODUCTION OF PLASTIC CONTAINERS FOR THE FOOD PAINT AND BUILDING MATERIALS INDUSTRIES THE COMPANY ALSO PRODUCES FORGED METAL PARTS FOR AIRCRAFT LOCOMOTIVES CARS AND TRUCKS IT SELLS EQUIPMENT TO HEATTREAT METAL PARTS AND THE HOUSEWARES UNIT MAKES BARBECUE GRILLS PATIO TRAYS AND OTHER PRODUCTS PARKOHIO BEGAN 1993 WITH 326 MILLION OF LOSS CARRYFORWARDS WHICH WILL SHIELD EARNINGS FROM INCOME TAXES FOR SEVERAL YEARS PARKOHIO ACHIEVED THE EARNINGS TURNAROUND MAINLY THROUGH A RESTRUCTURING THAT DECENTRALIZED THE COMPANY AND SHARPENED MANAGEMENT'S FOCUS ON EACH MAJOR BUSINESS MR CRAWFORD SAID THE CORPORATE STAFF WAS REDUCED TO SIX PERSONS FROM 26 HE SAID AS MOST FUNCTIONS WERE PUSHED DOWN TO THE DIVISIONS 9308230077 930823 DOT IS TRYING TO MEDIATE AMTRAK UNION DISPUTE WASHINGTON AP THE TRANSPORTATION DEPARTMENT IS TRYING TO HELP AMTRAK AND A UNION SETTLE A WORK RULE DISPUTE IN TIME TO AVERT A THREATENED STRIKE THIS WEEK A RAILROAD SPOKESWOMAN SAID AMTRAK SPOKESWOMAN RENEE BANKS SAID THE PASSENGER RAILROAD HAD BEEN TOLD DOT OFFICIALS WERE TRYING TO MEDIATE THE DISPUTE WITH THE UNITED TRANSPORTATION UNION SHE SAID SHE DIDN'T KNOW DETAILS DOT OFFICIALS DIDN'T RETURN TELEPHONE CALLS SATURDAY AND NO ONE ANSWERED THE UNION'S OFFICE PHONE IN PHILADELPHIA THE AMTRAK SPOKESWOMAN SAID UTU OFFICIALS INITIALLY THREATENED TO STRIKE AT 1201 AM MONDAY BUT SHE SAID AMTRAK WAS TOLD LATE FRIDAY THAT THE STRIKE DEADLINE WAS BEING POSTPONED UNTIL 1201 AM WEDNESDAY IN HOPES THAT DOT COULD HELP BOTH SIDES REACH A SETTLEMENT CURRENTLY SHE SAID ENGINEERS AND OTHER MEMBERS OF OPERATING CREWS CONDUCT TRAINS TO MAINTENANCE FACILITIES AND HAND THEM OVER TO MAINTENANCE CREWS WHO OPERATE THE TRAINS AS NEEDED FROM THAT POINT SHE SAID THE UNION WANTS TO INCLUDE A CONDUCTOR OR ASSISTANT CONDUCTOR WHO ARE MEMBERS OF THE UTU AMTRAK CARRIES SOME 22 MILLION PASSENGERS A YEAR OVER 25000 MILES OF TRACK 9308230076 930823 TAIWAN'S BID FOR JET VENTURE HITS A SNAG ACCORD WITH BRITISH AERO FACES SETBACK AS BANK RAISES LOAN QUESTION BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S PUSH TO ENTER THE AEROSPACE INDUSTRY MAY BE FACING ANOTHER ABORTED TAKEOFF AFTER MONTHS OF NEGOTIATIONS AND MISSED DEADLINES THE PROPOSED JOINT VENTURE BETWEEN BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP TO PRODUCE MIDSIZE PASSENGER JETS IS IN JEOPARDY WITH A MAJOR TAIWANESE GOVERNMENT BANK RAISING NEW OBSTACLES TO A FINANCING PLAN FOR THE VENTURE BAE CHAIRMAN JOHN CAHILL IS FLYING IN TO HOLD LASTDITCH TALKS HERE WITH TAIWANESE OFFICIALS THIS WEEK ONLY A MONTH AGO THE DEAL APPEARED TO BE SEALED CHIAOTUNG BANK A GOVERNMENT DEVELOPMENT BANK CHARGED WITH FORMING A TAIWANESE BANKING SYNDICATE THAT IS TO COMMIT 400 MILLION TO A LEASING COMPANY OWNED BY THE VENTURE HAD ANNOUNCED THAT IT WAS PREPARED TO GO AHEAD WITH THE LOAN AND MAJOR TAIWANESE COMPANIES AND GOVERNMENT INSTITUTIONS HAD AGREED TO INJECT NEW FUNDS INTO TAIWAN AEROSPACE TO ENABLE THE COMPANY TO HELP MEET THE VENTURE'S STARTUP COSTS NOW THOSE COMMITMENTS ARE IN DOUBT LAST WEEK CHIAOTUNG BANK RAISED OBJECTIONS TO THE LEASING COMPANY CITING TAIWANESE BANKING LAW IT DEMANDED THAT BAE COMMIT COMPANY ASSETS AS COLLATERAL FOR THE LOAN BAE REFUSED INSISTING THAT IT SHOULDN'T HAVE TO PUT UP LAND OR SECURITIES IN LIEU OF THE LETTERS OF CREDIT THAT NORMALLY ARE USED AS COLLATERAL IN INTERNATIONAL TRANSACTIONS MEANWHILE TAIWAN AEROSPACE ITSELF APPEARS DEAD IN THE WATER ITS TOP TWO EXECUTIVES PROBABLY WILL LEAVE THE COMPANY SOON AND ITS CORPORATE BACKERS ARE SHYING AWAY FROM THEIR FUNDING COMMITMENTS A GREAT DEAL IS AT STAKE IN THE 5050 VENTURE BETWEEN BAE AND TAIWAN AEROSPACE TO BE CALLED AVRO INTERNATIONAL AEROSPACE LTD THE BRITISH COMPANY NEEDS TAIWANESE CAPITAL TO CONTINUE PRODUCING ITS SHORTHAUL JETS FOURENGINE PLANES THAT SEAT 75 TO 115 PASSENGERS AND FOR AVRO TO DEVELOP A TWOENGINE VERSION OF THE PLANE THOUSANDS OF JOBS IN BRITAIN DEPEND ON THE VENTURE LIMITED ROLE FOR TAIWAN THE VENTURE MAY BE THE LAST CHANCE TO BECOME A SERIOUS PLAYER IN THE COMMERCIAL AEROSPACE INDUSTRY UNDER THE VENTURE TWO PRODUCTION LINES FOR THE AVRO PLANES WOULD BE SET UP ONE IN BRITAIN AND ONE IN TAIWAN THAT WOULD PROVIDE AN INJECTION OF TECHNOLOGY TO A TAIWANESE AEROSPACE INDUSTRY THAT UNTIL NOW HAS BEEN LIMITED TO PRODUCING MILITARY JETS AEROSPACE IS A LINCHPIN OF TAIWAN'S STRATEGY FOR DEVELOPING HIGHTECHNOLOGY INDUSTRIES BUT SO FAR THE GOVERNMENT HAS ACHIEVED LITTLE MORE IN ITS EFFORT THAN A REPUTATION FOR FAILING TO MEET COMMITMENTS LAST YEAR A PROPOSAL BY TAC TO BUY AS MUCH AS 40 OF MCDONNELL DOUGLAS CORP'S COMMERCIALAIRCRAFT DIVISION FOR AS MUCH AS 2 BILLION FELL THROUGH WHEN THE TAIWANESE GOVERNMENT BACKED AWAY FROM THE DEAL IN RECENT DAYS TAIWANESE OFFICIALS HAVE WARNED THAT THE COUNTRY'S AEROSPACE EFFORT MAY LOSE ALL INTERNATIONAL CREDIBILITY IF THE BAE VENTURE COLLAPSES TAIWAN'S AVIATION FUTURE DEPENDS ON HOW WE HANDLE THIS ONE SAYS AN AEROSPACE EXECUTIVE IF IT DOESN'T GO THROUGH THE GOVERNMENT SHOULD SIT BACK AND REALLY REEVALUATE PROJECTS WITH A 20TO 30YEAR INVESTMENT CYCLE MAYBE TAIWAN SHOULD JUST STICK WITH ONE TO TWOYEAR INVESTMENTS GOVERNMENT MINISTERS MET WITH CHIAOTUNG BANK'S CHAIRMAN LIANG KUOSHU OVER THE WEEKEND TO TRY TO WORK OUT A COMPROMISE ON THE LEASING COMPANY OFFICIALS CLOSE TO THE TALKS SAY THE SITUATION ISN'T AS DARK AS IT ORIGINALLY APPEARED IT'S A QUESTION OF CALMING DOWN AND LOOKING AT IT AGAIN AN OFFICIAL FAMILIAR WITH THE VENTURE SAYS THERE'S A STRONG CHANCE IT COULD BE SORTED OUT RAPIDLY THE KEY ISSUE IS COLLATERAL FOR THE LEASING COMPANY CHIAOTUNG BANK CURRENTLY OWNS 5 OF TAIWAN AEROSPACE UNDER TAIWANESE LAW A BANK IS PROHIBITED FROM MAKING UNSECURED LOANS TO A COMPANY IN WHICH IT HOLDS A STAKE LARGER THAN 3 UNDERCAPITALIZED TAIWAN AEROSPACE IS UNABLE TO PUT UP COLLATERAL SO CHIAOTUNG BANK HAS TURNED TO BAE BEYOND THAT ISSUE CHIAOTUNG BANK IS SEEKING FIRM COMMITMENTS FROM BAE ON TECHNOLOGY TRANSFER DURING THE DEVELOPMENT OF THE TWOENGINE VERSION OF AVRO'S PLANE COMMERCIAL BANKERS SUGGEST THAT THE BANK'S CHAIRMAN ALSO IS MANEUVERING TO OBTAIN CLEAR BACKING FROM THE TAIWAN GOVERNMENT FOR THE LEASING VENTURE SOMETHING THAT SO FAR HAS BEEN DENIED THE BANK PREVIOUSLY OBTAINED THE RIGHT FOR TAIWANESE BANKERS TO REVIEW AND VETO PROPOSED LEASING CONTRACTS GOVERNMENT OFFICIALS HAVE BEEN KEY BOOSTERS OF THE BAETAIWAN AEROSPACE PARTNERSHIP BUT THEY ARE RELUCTANT TO GUARANTEE THE VENTURE FOR FEAR OF POLITICAL REPERCUSSIONS IN TAIWAN'S LEGISLATURE WHICH IS CHARY OF THE DEAL TAIWANESE COMMERCIAL BANKERS SAY THAT WITHOUT A GUARANTEE THEY WILL REMAIN RELUCTANT TO LEND JUST LIP SERVICE FROM THE GOVERNMENT ISN'T GOOD ENOUGH SAYS AN EXECUTIVE WITH A TAIWANESE BANK MANY OBSERVERS BELIEVE THAT CHIAOTUNG BANK IS PLAYING A STALLING GAME AIMED AT KILLING AVRO IMPOSING NEW DEMANDS UNTIL THE BRITISH WALK AWAY THEY SAY MCDONNELL DOUGLAS HAD A SIMILAR EXPERIENCE WITH TAIWANESE DELAYING TACTICS LAST YEAR AFTER MONTHS OF FRUSTRATION THE US COMPANY BROKE OFF TALKS 9308230075 930823 FORMER BOSTON CO OFFICIAL IS BARRED FROM SEC WORK BOSTON MICHAEL J WALSH FORMER TREASURER OF BOSTON CO UNTIL RECENTLY A UNIT OF SHEARSON LEHMAN BROTHERS HOLDINGS INC SETTLED WITH THE SECURITIES AND EXCHANGE COMMISSION IN AN ORDER THAT BARS HIM FROM PRACTICING BEFORE THE SEC FOR AT LEAST THREE YEARS THE ORDER STEMS FROM A CASE SEVERAL YEARS AGO IN WHICH BOSTON CO INFLATED INCOME FIGURES RESULTING IN MATERIALLY FALSE INFORMATION BEING DISSEMINATED TO THE PUBLIC THE SEC SAID THOSE ACTIONS LED TO SHEARSON'S OVERSTATING NET IN THE FIRST THREE QUARTER OF 1988 BY A TOTAL OF 30 MILLION MR WALSH KNEW OR WAS RECKLESS IN NOT KNOWING OF THE OVERSTATEMENTS ACCORDING TO THE SEC ACCORDING TO THE SETTLEMENT MR WALSH ALSO AGREED TO CONTINUING REVIEWS AND MAY APPLY TO RETURN TO SECRELATED PRACTICE AFTER THREE YEARS 9308230074 930823 DIVIDEND NEWS KLEERVU INDUSTRIES INC KLEERVU INDUSTRIES INC HOUSTON DECLARED A 20 STOCK DIVIDEND PAYABLE OCT 15 TO STOCK OF RECORD SEPT 30 THE PHOTOALBUM MAKER SAID THE DIVIDEND WAS A SIGNAL OF CONFIDENCE IN ITS FUTURE PERFORMANCE 9308230073 930823 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 44 DAYS 308 45 TO 59 DAYS 310 60 TO 89 DAYS 311 90 TO 119 DAYS 312 120 TO 152 DAYS 322 153 TO 179 DAYS 323 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 306 60 DAYS 307 90 DAYS 309 120 DAYS 319 150 DAYS 319 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 672 60 DAYS 680 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 668 60 DAYS 678 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308230072 930823 AUSTRALIA STOCKS CONTINUE CLIMB DESPITE BUDGET SLOW ECONOMIC GROWTH AND INFLATION PROSPECTS DON'T DETER INVESTORS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY DOWN UNDER STOCKS ARE ON TOP UNDETERRED BY LAST TUESDAY'S ANNUAL AUSTRALIAN FEDERAL BUDGET THAT FORESHADOWED CONTINUED SLOW ECONOMIC GROWTH AND POTENTIALLY HIGHERTHANEXPECTED INFLATION IN THE YEAR AHEAD INVESTORS SPURRED THE STOCK MARKET TO ITS HIGHEST LEVELS SINCE THE OCTOBER 1987 GLOBAL STOCKMARKET CRASH BETWEEN THE BUDGET'S UNVEILING AND FRIDAY THE ALL ORDINARIES INDEX THE KEY BAROMETER JUMPED 22 TO 19271 POINTS BULLS DON'T HAVE EARS FOR BAD NEWS AND WE'RE IN A BULL MARKET SAYS JOHN BOWIE WILSON A DIRECTOR OF HAMBROS EQUITIES IN SYDNEY OVER THE NEXT TWO WEEKS I'LL BE HAPPY IF IT RETAINS THIS LEVEL HE SAYS BUT IT PROBABLY WILL BE HIGHER LOOKING AHEAD THREE TO SIX MONTHS THE TREND IS DEFINITELY UP ALTHOUGH THERE COULD WELL BE A PAUSE ALONG THE WAY AS THE MARKET DIGESTS ITS BIG GAINS SAYS RICHARD GREENFIELD A SENIOR FUND MANAGER AT NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALASIA ONE OF AUSTRALIA'S LARGEST INSTITUTIONAL INVESTORS INDEED YIELDHUNGRY INVESTORS HAVE BEEN POURING INTO THE AUSTRALIAN MARKET PUSHING THE ALL ORDINARIES INDEX OFF ITS MIDNOVEMBER 1992 BOTTOM OF 1357 POINTS TO A 42 GAIN IN NINE MONTHS STILL UNLIKE MOST STOCK MARKETS AROUND THE WORLD AUSTRALIA HAS YET TO RECOUP ITS PREOCTOBER 1987 HIGH OF 2306 POINTS IN PART THOUGH THAT'S BECAUSE MANY OF THE HOT ENTREPRENEURIAL STOCKS THAT HELPED ALIGHT THE MARKET THEN HAVE COLLAPSED ALTERING THE COMPOSITION OF THE MARKET BAROMETER DRIVING AUSTRALIAN INVESTORS INTO STOCKS MR BOWIE WILSON AND OTHERS SAY IS A SQUEEZE ON INVESTMENT YIELDS BROUGHT ON BY A WORLDWIDE TREND TO LOWER INTEREST RATES IN AUSTRALIA THE GOVERNMENT HAS LOWERED ITS KEY RATE BY 575 PERCENTAGE POINTS SINCE JULY 1991 TO 475 STOCKMARKET WATCHERS SAY THAT IT IS THE PAST THAT IS LIKELY TO CONVINCE INVESTORS OF WHERE TO PUT THEIR MONEY IN THE FUTURE OVER THE LAST 12 MONTHS THE OVERALL STOCK MARKET HAS YIELDED A TOTAL PRETAX RETURN OF 185 IN THE FORM OF DIVIDEND YIELDS AND SHAREPRICE APPRECIATION BY CONTRAST AN INVESTMENT IN A SOCALLED CASHMANAGEMENT TRUST OR MONEYMARKET ACCOUNT EARNED ABOUT 5 BEFORE TAX RUSSELL BARNES RESEARCH DIRECTOR AT ANZ MCCAUGHAN SECURITIES SAYS AUSTRALIAN INVESTORS REALLY TURNED TO THE STOCK MARKET IN LATE JUNE WHEN THE ALL ORDINARIES INDEX HOVERED IN THE 1700S BUOYED BY OVERSEAS BUYERS WHO ARE STILL COMING WHAT'S HAPPENED ON THE HOME FRONT HE SAYS IS THAT INVESTORS WHO HELD A PROPORTION OF THEIR MONEY IN BANK DEPOSITS ARE NOW ACTUALLY BUYING THE BANKS TAKE NATIONAL AUSTRALIA BANK ONE OF AUSTRALIA'S BIGGEST BANKS A DEPOSITOR IN THE BANK COULD EXPECT TO EARN AN ANNUAL AFTERTAX RETURN OF ABOUT 2 IN CONTRAST AN INVESTOR IN A NATIONAL AUSTRALIA SHARE COULD EXPECT A DIVIDEND YIELD OF 7 TO 8 ADJUSTED FOR SOCALLED FRANKING CREDITS THAT MAKE DIVIDENDS TAXFREE IN THE HANDS OF AUSTRALIAN INVESTORS ANY APPRECIATION IN THE PRICE OF NATIONAL AUSTRALIA SHARES MEANWHILE WOULD SWELL THE TOTAL RETURN BOND YIELDS TOO ARE RELATIVELY UNATTRACTIVE FOR INSTANCE A 10YEAR COMMONWEALTH GOVERNMENT BOND CURRENTLY HAS AN ANNUAL YIELD OF ABOUT 68 BUT APPLYING THE TOP PERSONAL TAX RATE ROUGHLY HALVES THAT RETURN MR BARNES IS BETTING THE INDEX WILL CLIMB TO 1950 POINTS WITHIN TWO WEEKS AND HIT 2000 POINTS WITHIN SIX MONTHS AMONG OTHER FACTORS UNDERPINNING THE MARKET MR BARNES THINKS THAT AFTER THREE YEARS OF FALLING SHORT OF ANALYSTS' PREDICTIONS CORPORATE EARNINGS WILL EXCEED FORECASTS CURRENTLY ANZ MCCAUGHAN ESTIMATES THAT CORPORATE PROFITS WILL SURGE 175 IN THE YEAR ENDING NEXT JUNE 30 BUT THE FIRM EXPECTS THAT IT WILL HAVE TO RAISE THAT FORECAST LATER THIS YEAR WITH SEVERAL COMPANIES STILL TO REPORT RESULTS FOR THE YEAR JUST ENDED ANZ MCCAUGHAN EXPECTS THE FIGURES TO SHOW THAT EARNINGS GREW IN THE LOWTOMIDTEENS FROM A YEAR EARLIER MEANWHILE MR BARNES IS TELLING HIS CLIENTS TO BUY BANK STOCKS AND MEDIA SHARES OVER AT JAMES CAPEL AUSTRALIA JOHN BANOS A STRATEGIST ARGUES THAT AUSTRALIA STACKS UP WELL AGAINST OTHER INTERNATIONAL MARKETS BY HIS NUMBERS FOR INSTANCE AUSTRALIAN INDUSTRIAL STOCKS ON AVERAGE ARE TRADING AT A PROSPECTIVE PRICE/EARNINGS RATIO OF 129 ABOUT THE SAME AS UK SHARES BUT LESS THAN US STOCKS AT 162 MEANWHILE JAPANESE STOCKS ARE TRADING AT 525 TIMES THEIR PROSPECTIVE 1994 EARNINGS AND GERMAN SHARES AT 205 TIMES THE P/E RATIO THE PRICE OF A SHARE DIVIDED BY EARNINGS PER SHARE FOR A 12MONTH PERIOD IS A WAY OF ASSESSING STOCK VALUE TAKING INTO ACCOUNT OTHER FACTORS SUCH AS PROSPECTIVE EARNINGS GROWTH BOLSTERED BY A CORPORATE TAX RATE CUT LAST MONTH TO 33 FROM 39 MR BANOS RECKONS THAT THE AUSTRALIAN EQUITY MARKET IS 5 TO 10 UNDERVALUED AGAINST EQUITY MARKETS OF OTHER DEVELOPED COUNTRIES JAMES CAPEL IS LOOKING FOR THE ALL ORDINARIES INDEX TO HIT 2100 OVER THE NEXT 12 MONTHS PARTLY BUOYED BY PERCEPTIONS PARTICULARLY FROM OVERSEAS INVESTORS THAT COMMODITY PRICES ARE NEAR THE BOTTOM MEANWHILE THE FIRM IS TELLING ITS CLIENTS TO MAINTAIN HOLDINGS OF GOLD STOCKS FIGURING THAT THE SHARES HAVE RUN UP AHEAD OF THE METAL'S FUNDAMENTALS AND IT IS ADVISING THEM TO UNDERWEIGHT BUILDINGMATERIALS COMPANIES AND RETAILERS 9308230071 930823 HEARD ON THE STREET MANAGER SEEKS ASSETRICH COMPANIES AS SHIELD AGAINST POSSIBLE DOWNTURN IN CORPORATE PROFITS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN MONEY MANAGER JOHN BOWLING BUYS A STOCK HE LIKES TO BE ABSOLUTELY SURE HE'S GETTING HIS MONEY'S WORTH THAT'S A TOUGH TASK IN TODAY'S EXUBERANT STOCK MARKET INVESTORS ARE BETTING HEAVILY THAT CORPORATE EARNINGS WILL IMPROVE IF PROFITS PROVE DISAPPOINTING INVESTORS COULD BE LEFT OWNING STOCKS THAT ARE WORTH FAR LESS THAN THEY THOUGHT MR BOWLING THE 61YEAROLD PRESIDENT OF CINCINNATI'S BOWLING PORTFOLIO MANAGEMENT TRIES TO GET AROUND THAT PROBLEM BY STICKING WITH ASSETRICH COMPANIES SUCH AS TRANSPORTATION GIANT CANADIAN PACIFIC MORTGAGE BANKER FUND AMERICAN ENTERPRISES HOLDINGS AND DISTILLER SEAGRAM WHATEVER HAPPENS TO EARNINGS MR BOWLING RECKONS THESE COMPANIES ARE STILL A BARGAIN BECAUSE THEIR SHARES ARE TRADING WELL BELOW THE VALUE OF THEIR CORPORATE HOLDINGS WITH OTHER COMPANIES WHEN THE STOCK DROPS 1 YOU WONDER IF THERE'S SOMETHING ABOUT THE STOCK THAT OTHER PEOPLE KNOW THAT YOU DON'T SAYS MR BOWLING BUT WITH OUR COMPANIES WE KNOW THAT WE'RE GETTING A LOT OF VALUE FOR OUR DOUGH MR BOWLING FOR INSTANCE IS A BIG FAN OF LOEWS CORP LOEWS HAS MAJOR STAKES IN THREE PUBLICLY TRADED COMPANIES BROADCASTER CBS INSURER CNA FINANCIAL AND PAPER MAKER CHAMPION INTERNATIONAL THESE STAKES ALONE ARE VALUED AT ROUGHLY 88 FOR EVERY LOEWS SHARE ADD IN THE VALUE OF LOEWS'S TOBACCO HOTEL AND OTHER BUSINESSES AND MR BOWLING RECKONS THE COMPANY'S HOLDINGS ARE WORTH 200 A SHARE YET THE STOCK CLOSED FRIDAY AT 93 3/8 OFF 1 1/8 MOST COMPANIES I FIND IMPOSSIBLE TO ANALYZE CONFIDES MR BOWLING BUT IF THEY'RE DIVERSIFIED COMPANIES WITH A LOT OF CASH OR THEY OWN SOME PUBLICLY TRADED STOCK IT'S USUALLY POSSIBLE FOR ME TO CLUMSILY PIECE TOGETHER A PRICE MR BOWLING'S FONDNESS FOR CHEAP ASSETS HAS BEEN RICHLY REWARDED IN THE PAST NELSON PUBLICATIONS FIGURES BOWLING PORTFOLIO MANAGEMENT HAS RETURNED 204 A YEAR OVER THE FIVE YEARS THROUGH 1992 COMPARED WITH 158 ANNUALLY FOR THE STANDARD & POOR'S 500STOCK INDEX BUT MUCH OF THAT GAIN CAME FROM BUYING BEATENUP PUBLICLY TRADED MUTUAL FUNDS MR BOWLING LIKES TO DABBLE IN THESE SOCALLED CLOSEDEND FUNDS BECAUSE FINDING BARGAINS IS A CINCH CLOSEDEND FUNDS USUALLY CALCULATE THE PERSHARE VALUE OF THEIR PORTFOLIO HOLDINGS AT LEAST ONCE A WEEK THE WALL STREET JOURNAL PUBLISHES SUCH CLOSEDEND DATA IN A TABLE EVERY MONDAY TO FIND OUT WHETHER A FUND IS TRADING AT A CUTRATE PRICE ALL YOU HAVE TO DO IS COMPARE THE PERSHARE PORTFOLIO VALUE WITH THE FUND'S STOCK PRICE MR BOWLING LOOKS FOR CLOSEDEND STOCK FUNDS WHOSE PUBLICLY TRADED SHARES TRADE AT LEAST 10 BELOW THE VALUE OF THE SECURITIES IN THE FUND'S PORTFOLIO RECENTLY HOWEVER THOSE SORTS OF BARGAINS HAVE BECOME INCREASINGLY RARE THAT HAS PROMPTED MR BOWLING TO FORAGE FOR WHAT HE CALLS QUASICLOSEDEND FUNDS SUCH AS CANADIAN PACIFIC LOEWS AND SEAGRAM HE NOW HAS 35 OF HIS CLIENTS' MONEY IN THESE STOCKS WITH THE REST SCATTERED AMONG REGULAR CLOSEDEND FUNDS SUCH AS INEFFICIENTMARKET FUND NOW AT 9 7/8 SALOMON BROTHERS FUND 14 AND TRICONTINENTAL CORP 25 WITH QUASICLOSEDENDS SAYS MR BOWLING THE TRICK ISN'T JUST TO FIGURE OUT WHAT THE REAL VALUE OF THE COMPANY IS YOU ALSO WANT TO SEE WHETHER THERE'S SOME CATALYST THAT MIGHT CAUSE THAT VALUE TO GET REFLECTED IN THE COMPANY'S STOCK PRICE FOR INSTANCE MR BOWLING SAYS THERE'S NO DOUBT THAT ST JOE PAPER FLORIDA'S BIGGEST PRIVATE LANDOWNER IS CHEAP THE STOCK TRADES AT 46 WHILE EVERYBODY WHO ANALYZES IT RECKONS IT'S WORTH ABOUT 100 A SHARE SAYS MR BOWLING THE COMPANY HOWEVER IS 70OWNED BY THE ALFRED I DUPONT TESTAMENTARY TRUST SO A TAKEOVER SEEMS OUT OF THE QUESTION THE ARGUMENT FOR THE STOCK IS THAT THE TRUST IS GOING TO HAVE TO GET MORE MONEY OUT OF THE COMPANY FOR ITS CHARITABLE ACTIVITIES AND THAT SHOULD BE GOOD FOR SHAREHOLDERS SAYS MR BOWLING HE FAVORS COMPANIES WHOSE ASSETS WOULD CLEARLY INTEREST POTENTIAL BUYERS HE NOTES FOR INSTANCE THAT A CAR MAKER MAY HAVE SPENT A LOT OF MONEY TO BUILD A FACTORY BUT THAT DOESN'T MEAN THE FACTORY WOULD NECESSARILY COMMAND A HIGH PRICE IF IT WAS SOLD WE'RE TRYING TO LOOK FOR LEGITIMATE ASSETS SAYS MR BOWLING THAT'S ONE REASON HE LIKES CHRISCRAFT INDUSTRIES THE NEW YORK CONCERN HAS AN INDUSTRIAL PRODUCTS DIVISION BUT ITS BIGGEST ASSET IS A 69 STAKE IN PUBLICLY TRADED BHC COMMUNICATIONS WHICH OWNS TELEVISION STATIONS ON A FULLY DILUTED BASIS CHRISCRAFT'S BHC STAKE IS VALUED AT SOME 35 FOR EVERY CHRISCRAFT SHARE WHICH CLOSED FRIDAY AT 37 3/4 THAT STAKE IS READILY SALABLE SAYS MR BOWLING HE ALSO NOTES THAT CHRISCRAFT IS JUST ABOUT DEBTFREE THEY'RE NOT GOING TO GO OUT OF BUSINESS THAT'S FOR SURE SAYS MR BOWLING THAT'S A GREAT CONSOLATION TO ME 9308230070 930823 ECONOMY FED MAINTAINED POSTURE TOWARD HIGHER RATES DECISION DRIVEN BY DESIRE FOR POLICY CONTINUITY NOT FEARS OF INFLATION BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE POLICY MAKERS DECIDED AT THEIR JULY MEETING TO CONTINUE TILTING TOWARD HIGHER SHORTTERM INTEREST RATES BUT THAT POSTURE WAS MAINTAINED LESS BECAUSE OF IMMEDIATE FEARS ABOUT INFLATION THAN A DESIRE TO DISPLAY A SENSE OF CONTINUITY HEADING INTO THEIR MEETING IN MAY A NUMBER OF FED POLICY MAKERS WERE WORRIED THAT PRICE PRESSURES HAD INCREASED THROUGHOUT THE ECONOMY AND THE CENTRAL BANK SHIFTED ITS STANCE TOWARD HIGHER RATES BUT BY THE TIME THE OFFICIALS MET IN JULY IT LOOKED LIKE THE APPARENT INTENSIFICATION OF INFLATION IN EARLIER MONTHS OF THE YEAR MIGHT HAVE ABATED ACCORDING TO THE OFFICIAL SUMMARY OF THE SESSSION WHICH WAS RELEASED FRIDAY NONETHELESS THE FED'S POLICYSETTING OPEN MARKET COMMITTEE KEPT LEANING TO HIGHER RATES BY A VOTE OF 111 EVEN THOSE WHO THOUGHT A NEUTRAL POSTURE MIGHT BE MORE CONSISTENT WITH CURRENT ECONOMIC CONDITIONS AGREED THAT TAKING ONE SO SOON AFTER THE ADOPTION OF A DIRECTIVE THAT WAS BIASED TOWARD RESTRAINT COULD CONVEY A MISLEADING IMPRESSION THAT THE FED WAS WORRIED ABOUT THE RECOVERY'S SUSTAINABILITY OR HAD BECOME LESS COMMITTED TO KEEPING INFLATION UNDER CONTROL THE OPEN MARKET COMMITTEE MET AGAIN BEHIND CLOSED DOORS LAST WEEK THE FED HASN'T SINCE SIGNALED ANY CHANGE IN MONETARY POLICY A SUMMARY OF THE DISCUSSIONS WILL BE RELEASED IN ABOUT SIX WEEKS SINCE THE JULY MEETING FEARS OF INFLATION HAVE ABATED FURTHER THE LABOR DEPARTMENT RECENTLY REPORTED THAT WHOLESALE PRICES SANK AND CONSUMER PRICES CLIMBED ONLY A TINY 01 LAST MONTH A DIRECTIVE THAT IS BIASED TOWARD HIGHER RATES GIVES THE FED CHAIRMAN THE LEEWAY TO RAISE THE FEDERAL FUNDS RATE BY AS MUCH AS ONEHALF PERCENTAGE POINT WITHOUT SEEKING A VOTE OF THE OPEN MARKET COMMITTEE IF ECONOMIC CONDITIONS JUSTIFY IT THE FED HAS HELD THE FEDERAL FUNDS RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER AT 3 SINCE SEPTEMBER THE DISSENTING VOTE AT THE JULY MEETING WAS CAST BY FED GOV WAYNE ANGELL WORRIED THAT FURTHER PROGRESS TOWARD PRICE STABILITY WAS UNLIKELY GIVEN THE QUITE STIMULATIVE STATE OF MONETARY POLICY HE URGED RAISING RATES IMMEDIATELY ALTHOUGH THE MAJORITY DIDN'T WANT TO GO THAT FAR THEY CLEARLY RECOGNIZED HIS CAUSE FOR CONCERN AT SOME POINT THE SUMMARY SAID THE CURRENT POLICY STANCE COULD WELL BEGIN TO FOSTER GREATER PRICE PRESSURES SOME OFFICIALS COMMENTED THAT WHILE THE NEED FOR ANY POLICY ADJUSTMENT DURING THE PERIOD AHEAD SEEMED SOMEWHAT REMOTE THE NEXT POLICY MOVE WAS MORE LIKELY TO BE IN THE DIRECTION OF SOME FIRMING THAN TOWARD EASING 9308230069 930823 INTERNATIONAL CADBURY TO BOOST STAKE IN DR PEPPER BY PAYING PRUDENTIAL 2318 MILLION BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A DEEPENING OF CROSSATLANTIC TIES BETWEEN SOFTDRINK COMPANIES CADBURY SCHWEPPES PLC SAID IT WILL PAY 2318 MILLION TO RAISE ITS STAKE IN DALLASBASED DR PEPPER/SEVENUP COS TO 259 FROM 57 CADBURY SAID IT AGREED TO BUY PRUDENTIAL INSURANCE CO OF AMERICA'S 122 MILLION DR PEPPER SHARES FOR 19 APIECE IT PLANS TO FINANCE THE PURCHASE THROUGH ITS OWN RESOURCES DR PEPPER SHARES CLOSED FRIDAY AT 19 UP 1875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A CADBURY SPOKESWOMAN SAID THE COMPANY HAS NO PLANS TO ACQUIRE MORE SHARES AND A CADBURY NEWS RELEASE SAID IT IS WILLING TO ENTER INTO A STANDSTILL AGREEMENT WITH DR PEPPER AMERICA'S THIRDLARGEST SOFTDRINK MAKER CADBURY AMERICA'S FOURTHLARGEST AND THE WORLD'S THIRDLARGEST SOFTDRINK MAKER SAID IT VIEWED DR PEPPER AS AN ATTRACTIVE INVESTMENT NOTING THAT ITS 7 SALES GROWTH IN 1992 OUTSTRIPPED OVERALL US SOFTDRINK SALES GROWTH OF 15 IN THIS YEAR'S FIRST HALF DR PEPPER SALES ROSE 53 THE COMPANY SAID CADBURY SAID IT WAS HOLDING TALKS WITH DR PEPPER MANAGEMENT ABOUT WAYS IN WHICH THE TWO COMPANIES CAN COOPERATE TO MAXIMIZE THEIR RESPECTIVE STRENGTHS DR PEPPER ALREADY MAKES MOST OF CADBURY SCHWEPPES'S SOFTDRINK CONCENTRATES FOR THE US MARKET AND IS THE EXCLUSIVE SALES AGENT FOR SOME OF CADBURY'S SOFTDRINK BRANDS WHICH INCLUDE SUNKIST CANADA DRY AND HIRES CADBURY SAID THE ACQUISITION REPRESENTS AN EXCELLENT OPPORTUNITY TO INCREASE SUBSTANTIALLY ITS INVESTMENT IN THE US SOFTDRINK MARKET AT A PRICE WHICH REPRESENTS GOOD VALUE CADBURY SAID THE SHARES IT IS PURCHASING HAVE RESTRICTED VOTING RIGHTS BUT IT SAID THOSE SHARES ARE CONVERTIBLE INTO FULLY VOTING SHARES CONTINGENT UPON THE HOLDER'S FILING A NOTIFICATION UNDER THE US HARTSCOTTRODINO ANTITRUST IMPROVEMENTS ACT CADBURY WHICH HOLDS 34 OF THE NORTH AMERICAN MARKET FOR CARBONATED SOFT DRINKS PLANS TO MAKE SUCH A FILING QUICKLY THE CADBURY SPOKESWOMAN SAID ISSUES DISCUSSED WITH DR PEPPER MANAGEMENT COULD INCLUDE PLACING A CADBURY REPRESENTATIVE ON THE DALLAS CONCERN'S BOARD BUT A SPOKESMAN FOR DR PEPPER DISMISSED THE IDEA OF CADBURY'S GAINING A SEAT ON THE SEVENMEMBER BOARD I DON'T THINK THAT WILL HAPPEN I'LL TELL YOU THAT SAID JIM BALL VICE PRESIDENT FOR CORPORATE COMMUNICATIONS IN 1992 CADBURY HAD OPERATING PROFIT OF 3846 MILLION 579 MILLION ON SALES OF 337 BILLION SEPARATELY THE SUNDAY TIMES OF LONDON QUOTED UNIDENTIFIED INDUSTRY ANALYSTS YESTERDAY AS SAYING THAT CADBURY SCHWEPPES MAY BID ABOUT 150 MILLION FOR THE US SOFTDRINK CONCERN A&W BRANDS INC OF WHITE PLAINS NY THE MAKER OF A&W ROOT BEER AND CREAM SODA OFFICIALS OF CADBURY AND A&W COULDN'T BE REACHED FOR COMMENT ON THE REPORT THE REPORT SAID CADBURY HAS BEEN TRACKING A&W FOR YEARS AS THE COMPANY IS ONE OF THE FEW INDEPENDENT SOFTDRINK MANUFACTURERS WITH A SIZABLE SHARE OF THE US MARKET 9308230068 930823 TECHNOLOGY PHOENIX LASER SEES WIDER 1992 NET LOSS RESULTS ARE DELAYED PHOENIX ALSO SAID IT IS SEEKING ADDITIONAL FINANCING FROM PRIVATE AND PUBLIC SOURCES HOWEVER THE COMPANY SAID IT DOESN'T HAVE ANY COMMITMENTS FOR SUCH FINANCING AND WILL BE REQUIRED TO SUBSTANTIALLY REDUCE ITS OPERATING EXPENSES LIMIT OPERATIONS AND CUT RESEARCH AND DEVELOPMENT IF IT DOESN'T GET FUNDING BY DEC 31 PHOENIX'S STOCK CLOSED AT 3375 DOWN 875 CENTS OR 21 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE FRIDAY THE MAKER OF MEDICAL LASERS SAID IT HASN'T YET FILED ITS 1992 ANNUAL REPORT NOR ANY SUBSEQUENT QUARTERLY REPORTS WITH FEDERAL REGULATORS BECAUSE OF DELAYS RELATED TO EVALUATION OF CERTAIN FOREIGN INVESTMENTS THE COMPANY FILED SUIT IN APRIL AGAINST A HONG KONG INVESTOR GROUP CHARGING THAT A MEMBER OF THE GROUP MISAPPROPRIATED 135 MILLION IN COMPANY FUNDS A PHOENIX SPOKESMAN SAID THE COMPANY WON'T GIVE SPECIFIC RESULTS FOR THE 1992 FOURTH QUARTER THE COMPANY SAID IT WILL POST A NET LOSS OF ABOUT 446 MILLION ON SALES OF 31 MILLION FOR ALL OF 1992 COMPARED WITH A NET LOSS OF 411 MILLION ON SALES OF 1 MILLION IN 1991 FOR THE FIRST NINE MONTHS OF 1992 THE COMPANY REPORTED A NET LOSS OF 124 MILLION ON SALES OF 25 MILLION THE SPOKESMAN SAID PERSHARE EARNINGS FIGURES WEREN'T AVAILABLE PHOENIX SAID THE LOSSES RELATE GENERALLY TO THE COMPANY'S RESEARCH AND DEVELOPMENT FUNDRAISING EFFORTS AND TWO FOURTHQUARTER CHARGES A WRITEOFF OF 99 MILLION IN ASSETS RELATED TO ITS HONG KONG OPERATIONS INCLUDING PHOENIX'S INVESTMENT IN THE HONG KONG GROUP'S COMPANY AND THE AMOUNT IT ALLEGEDLY MISAPPROPRIATED AND A 71 MILLION WRITEOFF RELATED TO THE COSTS OF UNSUCCESSFUL OFFERINGS FOR THE 1993 FIRST QUARTER THE COMPANY ESTIMATED IT WILL POST A NET LOSS OF 23 MILLION ON SALES OF 826000 COMPARED WITH A NET LOSS OF 51 MILLION ON SALES OF 11 MILLION IN THE YEAREARLIER QUARTER FOR THE SECOND QUARTER THE COMPANY SAID IT EXPECTS TO POST A NET LOSS OF 41 MILLION ON SALES OF 783000 COMPARED WITH A NET LOSS OF 41 MILLION ON SALES OF 797000 A YEAR EARLIER 9308230067 930823 CANADIAN CONSUMER PRICE INDEX OTTAWA CANADA'S CONSUMER PRICE INDEX ON A SEASONALLY ADJUSTED BASIS ROSE 01 IN JULY FROM JUNE STATISTICS CANADA A GOVERNMENT AGENCY SAID IN JUNE THE INDEX ROSE 01 FROM MAY 9308230066 930823 LEISURE & ARTS TELEVISION WORLD PEACE JUST 500 CHANNELS AWAY BY DANIEL P HENNINGER IF LIKE MICHAEL JACKSON YOU WANT TO MAKE THE WORLD A BETTER PLACE I HAVE THE WAY TO DO IT PUT EVERYONE ON TV THE TRADITIONAL FORMULA FOR WORLD PEACE HAS BEEN THAT DIPLOMATS TALK TO EACH OTHER THE NEWER MICHAEL JACKSON FORMULA IS THAT WE SHOULD LEND A HELPING HAND NEITHER OF THESE STRATEGIES FOR PEACE SEEMS TO WORK VERY WELL THE MODERN CONDITION IS THAT THE WORLD IS DRIPPING WITH ANGRY PEOPLE FOR EVERY IMAGINABLE REASON AND MANY REASONS YET TO BE IMAGINED THE SERBIANS CITE OFFENSES IN THE 14TH CENTURY THERE ARE PEOPLE ALL OVER THE WORLD WHO ARE SEETHING MAD ABOUT SOME GRIEVANCE WRONG SLIGHT HISTORICAL CLAIM OR THE IRREDEEMABLE AND INTRANSIGENT IGNORANCE OF EVERYONE ELSE AS WE KNOW BECAUSE WE SEE IT ON TV IN MANY PARTS OF THE WORLD THIS SEETHING MANIFESTS ITSELF AS SHOOTING IN THE US IT MANIFESTS ITSELF PRIMARILY AS LITIGATION IN ALL CASES THE SEETHING CAUSES SEEMINGLY UNENDING DESTRUCTION IN THE FORM OF ASSASSINATIONS BOMBINGS WARS AND LAWSUITS NOW WHAT FUNDAMENTALLY IS THE PROBLEM HERE AFTER ALL BY MOST MEASURES OTHER THAN MAYHEM THE WORLD IS IN ITS MOST ADVANCED STAGE OF CIVILIZATION THE PROBLEM IS THAT NONE OF THESE MAD MILLIONS BELIEVE THEY ARE GETTING A FAIR HEARING THEY THINK THEIR OPPONENTS WON'T GIVE THEM THE TIME OF DAY AND THAT NO ONE ELSE QUITE UNDERSTANDS THEIR PROBLEMS SO THEY START SHOOTING OR SUING NOW WE HAVE TO ACKNOWLEDGE THAT THERE MAY BE GOOD REASONS WHY NO ONE WILL GIVE THEM THE TIME OF DAY SUCH AS THAT THEY ARE QUITE CRAZY OR BOORISH OR SIMPLY UNREASONABLE SO WE HAVE STANDOFFS AND SHOOTOUTS AND AS BOSNIA PROVES THE BEST AND THE BRIGHTEST WHO ARE NOW IN CHARGE OF ADMINISTERING THE NEW WORLD ORDER DON'T HAVE A CLUE AS TO WHAT TO DO ABOUT IT I THINK THIS IS BECAUSE THE BEST AND THE BRIGHTEST HAVE MISSED ONE OF THE GREAT PSYCHOLOGICAL TURNS IN HISTORY IN THE OLD DAYS ROUGHLY THE YEARS EXTENDING FROM 1960 BACK TO THE BEGINNING OF RECORDED HISTORY PEOPLE WERE WILLING TO TALK TO EACH OTHER NOT NOW NO ONE ESPECIALLY NOT ALL THESE PEOPLE WHO ARE SO UPSET WANTS TO WASTE TIME TALKING IN A SWISS HOTEL ROOM TO AMERICAN OR EUROPEAN LAWYERS WOULD YOU GET SERIOUS WE'RE LIVING IN THE NEW WORLD ORDER WHAT THESE PEOPLE WANT MORE THAN ANYTHING IS TO TALK TO THE WORLD THEY DON'T WANT A NEGOTIATING PARTNER THEY WANT AN AUDIENCE JOAN RIVERS SAYS IT ALL FOR MODERN MAN WHEN SHE SAYS CAN WE TALK OBVIOUSLY WHAT SHE REALLY MEANS IS CAN I TALK NOT COUNTING RADIO WHICH AT THE MOMENT IS A WHOLLY OWNED SUBSIDIARY OF RUSH LIMBAUGH THE ONLY PLACE WHERE YOU CAN REALLY TALK WITHOUT WASTING YOUR TIME ON THE OBSOLETE HUMAN ACTIVITY OF LISTENING IS ON TELEVISION ADD TO THIS THAT ARGUABLY THE ONLY DESIRE TRULY SHARED BY THE WORLD'S PEOPLE TODAY IS THEY ALL WANT TO BE ON TELEVISION IN FACT I THINK WE'VE GONE PAST THE POINT WHERE MOST PEOPLE WOULD LIKE TO BE ON TV NOW MOST PEOPLE THINK THEY SHOULD BE ON TV WE ARE THE WORLD AND THE WORLD BELONGS ON TV I SAY NO PROBLEM GIVE ALL THE DISAFFECTED OR DISTURBED PEOPLE THEIR OWN CHANNELS I GUARANTEE THAT WHERE ONCE THERE WAS SHOOTING THERE WILL BE TALK AND THAT WILL BRING PEACE THE NARCOTIC PEACE OF TELEVISION WHEN IN THE NEAR FUTURE WE ARE TRYING TO FILL UP THOSE 500 OR 5000 CHANNELS WITH SOMETHING OTHER THAN THE DOG SHOW CHANNEL WE SHOULD LAUNCH A TRANSPONDER SATELLITE AND CALL IT MADSAT EVERY AGGRIEVED GROUP IN THE WORLD WILL HAVE ITS OWN CHANNEL ON MADSAT AND EVERYONE IN THE WORLD WILL HAVE A BOX THAT PROVIDES ACCESS TO ALL THE CHANNELS ON MADSAT WE ARE TALKING ABOUT SOMETHING WAY BEYOND CNN HOVERING 22000 MILES ABOVE THE EARTH MADSAT WILL BROADCAST THE PLO CHANNEL THE HEZBOLLAH CHANNEL THE SERBIAN CHANNEL THE CROAT CHANNEL THE KHMER ROUGE CHANNEL CERTAINLY THE IRISH REPUBLICAN ARMY CHANNEL THE TAMIL CHANNEL THE CHANNEL FOR THE JEWISH DEFENSE LEAGUE THE SKINHEADS OF EUROPE CHANNEL THE ARMENIAN CHANNEL AND THE AFRICAN WARLORDS CHANNEL THERE WILL BE SEPARATE CHANNELS FOR FIDEL SADDAM AND MOAMMAR IN THE US ALONE WE COULD FILL UP HALF THE TRANSPONDERS THERE OUGHT TO BE AN URBAN GANG CHANNEL A GREENPEACE CHANNEL A SOCIAL JUSTICE CHANNEL THE CHANNEL FOR GENDER STUDIES THE ENDANGERED SPECIES CHANNEL THE CHANNEL FOR ANXIOUS PEOPLE THE DICK GEPHARDT CHANNEL THE TORT LIABILITY CHANNEL AND THE CHANNEL FOR SHORTLIVED CRUSADES MAYBE WE NEED A CHANNEL FOR HOMELESS PEOPLE I THINK THERE SHOULD EVEN BE AN I HATE THE WALL STREET JOURNAL EDITORIAL PAGE CHANNEL FOR MICHAEL KINSLEY MOLLY IVINS JAMES FALLOWS RICHARD REEVES AND THE EDITORS OF THE NEW YORKER SOME PEOPLE WILL OBJECT THAT THIS WILL FILL UP OUR LIVING ROOMS WITH HALFTRUTHS FALSITY AND SUPERSTITION AS OPPOSED TO WHAT WE HAVE NOW ANYWAY TRUTH ON TELEVISION ISN'T THE POINT THE POINT IS PEACE OR MORE TO THE POINT PEACEABILITY HAVE YOU EVER NOTICED HOW CIVILIZED AND REASONABLE EVERYONE TRIES TO SOUND ON TV RECALL AFTER THE RIOTS IN SOUTH CENTRAL LOS ANGELES HOW THE NETWORKS PUT THE BLOODS AND THE CRIPS ON AND THEY CAME OFF SOUNDING AS SERIOUS AND INTELLIGENT AS WELL YOUR AVERAGE ANCHORMAN ONE OF THE THINGS THAT HAS ALWAYS STRUCK ME ABOUT DONOHUE AND GERALDO IS THAT ALL THEIR GUESTS NO MATTER WHAT PITS OF DEPRAVITY THEY MIGHT HAVE CRAWLED OUT OF ARE SO REASONABLE THIS IS A VERY MYSTERIOUS PHENOMENON PEOPLE EVERYWHERE SEEM INCLINED TO ACCORD AN APPEARANCE ON TELEVISION THE KIND OF CIVILIZED REVERENCE ONE USED TO FIND ONLY IN A CHURCH OR TEMPLE OR MOSQUE AND WHILE IT IS SOMEHOW ALL RIGHT TO SOUND STUPID ON THE STREET OR ON THE FLOOR OF A LEGISLATURE PUT A STUPID PERSON ON TELEVISION AND HE'LL AUTOMATICALLY TRY TO SOUND LIKE WELL AN ANCHORMAN MADSAT PROMISES PEACE OR AT LEAST A KIND OF PEACEFUL BABBLE THAT RESIDENTS OF THE GLOBAL VILLAGE SEEM COMFORTABLE WITH MR HENNINGER IS DEPUTY EDITOR OF THE JOURNAL'S EDITORIAL PAGE 9308230065 930823 ENTERPRISE MERGER ACTIVITY OF SMALL FIRMS KEEPS GROWING BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BUSINESSES ARE BACK IN DEMAND ACQUISITION ACTIVITY THAT BEGAN TO REBOUND EARLY THIS YEAR HAS GAINED MOMENTUM HELPING BUSINESS OWNERS FIND BUYERS WHOSE RANKS HAD BEEN THINNING FOR YEARS BETWEEN MAY 1 AND AUG 4 THE NUMBER OF ANNOUNCED US MERGERS AND ACQUISITIONS CLIMBED 20 TO 1672 FROM 1389 IN THE LIKE 1992 PERIOD SECURITIES DATA CO SAYS IN THE FIRST FIVE MONTHS OF 1993 SUCH ACTIVITY GREW LITTLE MORE THAN 3 FROM A YEAR EARLIER BEFORE THAT THE FULLYEAR FIGURES HAD DECLINED IN BOTH OF THE PAST TWO YEARS MANY BUYERS ARE LARGE CORPORATIONS SEEKING TO GROW THROUGH STRATEGIC ACQUISITIONS THEY CAN NOW RENEW BUYING BECAUSE THEY HAVE BROUGHT THEIR RECESSIONRELATED PROBLEMS UNDER CONTROL THE SELLERS COMMONLY SMALL COMPANIES ARE SOMETIMES OBTAINING PRICES COMPARABLE TO WHAT THEY COULD RAISE BY GOING PUBLIC WITHOUT THE HASSLES INVOLVED AT SPERRY MITCHELL & CO A NEW YORK INVESTMENT BANK THAT SPECIALIZES IN BUYING AND SELLING SMALLER PRIVATE COMPANIES CORPORATE BUYERS WERE INVOLVED IN FOUR OF THE FIRM'S SIX TRANSACTIONS IN THE FIRST HALF THE VOLUME EQUALS THE NUMBER OF DEALS MADE BY SPERRY MITCHELL FOR ALL OF 1992 SAYS PAUL SPERRY THE INVESTMENT BANK'S PRESIDENT WE'RE SEEING A HUGE UPTURN IN THE APPETITE OF BUYERS AND THE DESIRE OF SELLERS HE ADDS BROWNINGFERRIS INDUSTRIES INC A BIG WASTEMANAGEMENT CONCERN IN HOUSTON SAYS IT BOUGHT 72 SMALLER GARBAGE HAULERS IN THE NINEMONTH PERIOD ENDED JUNE 30 THAT IS MORE THAN TRIPLE THE 21 PURCHASED A YEAR EARLIER A COMPANY SPOKESMAN SAYS UNTIL LAST YEAR BROWNINGFERRIS HAD BEEN GRAPPLING WITH FIERCE PRICECUTTING AND OTHER PROBLEMS RELATED TO THE ECONOMIC SLUMP ONCE WE'D GOTTEN OUR ARMS AROUND SOME OF THESE OPERATING ISSUES WE FOCUSED ON GROWTH THE SPOKESMAN NOTES SOCALLED STRATEGIC BUYERS LIKE BROWNINGFERRIS CLEARLY ARE DRIVING THE MARKET FOR MERGERS AND ACQUISITIONS SAYS LLOYD GREIF PRESIDENT OF GREIF & CO A LOS ANGELES INVESTMENT BANK SPECIALIZING IN SMALL AND MIDSIZE DEALS THE FIRM SAYS IT HAS 16 DEALS PENDING TRIPLE THE NUMBER PENDING A YEAR AGO IN A TYPICAL STRATEGICPURCHASE DEAL IN JUNE MR GREIF HELPED TO FINALIZE THE SALE OF DEL AMO DIAGNOSTIC CENTER LP A TORRANCE CALIF CONCERN THAT OPERATES DIAGNOSTIC TESTING FACILITIES DEL AMO WAS SOLD FOR ROUGHLY 15 MILLION TO A TORRANCE UNIT OF LITTLE COMPANY OF MARY HOSPITAL INC WHICH OWNS THREE NURSING HOMES AND FOUR HOSPITALS THE COMPANY WANTED TO ADD DIAGNOSTIC TESTING TO ITS SERVICES MR GREIF SAYS THE GROWING ACQUISITIVENESS OF STRATEGIC BUYERS IS PUSHING UP THE SELLING PRICES FOR SMALL AND MEDIUMSIZE BUSINESSES INVESTMENT BANKERS SAY COMPANIES THAT MIGHT HAVE SOLD THREE YEARS AGO FOR FOUR TO SIX TIMES THEIR EARNINGS BEFORE INTEREST AND TAXES CURRENTLY ARE FETCHING SEVEN EIGHT AND EVEN 10 TIMES THEIR EARNINGS BEFORE INTEREST AND TAXES THE SYNERGIES GAINED FROM A STRATEGIC ACQUISITION ENABLE CORPORATE BUYERS TO PAY MORE THAN SOCALLED FINANCIAL BUYERS FINANCIAL BUYERS ACQUIRE COMPANIES SPECIFICALLY TO RESELL THEM AND USUALLY BORROW HEAVILY TO FINANCE THEIR DEALS WE CAN MAKE CERTAIN THINGS HAPPEN THAT A FINANCIAL BUYER CAN'T SAYS RICHARD BULLWINKLE CHIEF EXECUTIVE OF SEMITECH INC THE GARLAND TEXAS UNIT OF STH CORP PRODUCES SUPPLIES FOR SHAPING AND POLISHING OPTICAL LENSES IN JUNE SEMITECH BOUGHT COMPETITOR ECONOCLOTH INC A 50YEAROLD CONCERN IN LANSING ILL THAT ALSO SELLS PADS POLISHES AND POWDERS TO FINISH OPTICAL LENSES SEMITECH KEPT ECONOCLOTH OUT OF RIVALS' HANDS AND GAINED ITS POSITION AS A MAJOR SUPPLIER TO RETAIL OPTICAL CHAINS MR BULLWINKLE SAYS SEMITECH MAINLY SELLS SIMILAR SUPPLIES TO LARGE WHOLESALE DISTRIBUTORS INVESTMENT BANKERS SAY STRATEGIC BUYERS ALSO ARE WILLING TO PAY MORE MONEY THAN IN THE PAST TO COMPETE WITH PRICES THAT BUSINESS OWNERS CAN GET BY SELLING STOCK TO THE PUBLIC THE MARKET FOR NEW ISSUES HAS BEEN BOOMING LATELY MORE THAN 350 COMPANIES HAVE GONE PUBLIC SO FAR THIS YEAR KEEPING PACE WITH YEAREARLIER LEVELS WHEN SUCH ACTIVITY NEARLY DOUBLED SECURITIES DATA SAYS WHILE THE BULL MARKET IS FORCING BUYERS TO PAY MORE IT ALSO IS PROVIDING THEM WITH THE FUNDS TO DO SO TRANSCOR WASTE SERVICES INC A REGIONAL SOLIDWASTE MANAGEMENT CONCERN IN TAMPA FLA SAYS IT NETTED 4 MILLION FROM AN INITIAL STOCK OFFERING IN MARCH THE COMPANY IS USING THE PROCEEDS TO REPAY DEBT AND MAKE ACQUISITIONS SAYS ITS PRESIDENT CHARLES BAKER JR TRANSCOR IS NEGOTIATING WITH TWO SMALL COMPANIES THAT WOULD FIT INTO OUR EXISTING OPERATIONS MR BAKER SAYS FINANCIAL BUYERS ARE CONTRIBUTING TO THE INCREASED ACQUISITION ACTIVITY AS WELL EVEN THOUGH THEIR PRESENCE IS MUCH LESS THAN IT WAS DURING THE LEVERAGEDBUYOUT BINGE OF THE LATE 1980S BUYOUT FUNDS PARTNERSHIPS THAT RAISE MONEY TO ACQUIRE BUSINESSES ARE USING THE IPO BOOM TO CASH IN THEIR INVESTMENTS AND THUS REPLENISH THEIR COFFERS FOR NEW ACQUISITIONS INVESTMENT BANKERS SAY THE BUYERS ALSO ARE FINDING RENEWED THOUGH MORE CONSERVATIVE INTEREST AMONG LENDERS IN FINANCING DEALS FUND RAISING AMONG SUCH BUYERS HAS RISEN STEADILY SINCE 1991 AND THIS YEAR IS EXPECTED TO AT LEAST MATCH THE 52 BILLION RAISED LAST YEAR SAYS STEVEN GALANTE EDITOR AND PUBLISHER OF PRIVATE EQUITY ANALYST A WELLESLEY MASS NEWSLETTER KIDD KAMM & CO A BUYOUT FIRM IN GREENWICH CONN SAYS IT USED PROCEEDS FROM A NEW 113 MILLION ACQUISITION FUND TO PURCHASE THREE COMPANIES EARLIER THIS YEAR THE FIRMS RANGED IN SIZE FROM 30 MILLION TO 90 MILLION IN ANNUAL REVENUE BANKS COMMERCIALFINANCE COMPANIES AND OTHER LENDERS HAVE WORKED OUT SOME OF THEIR PROBLEMS AND ARE DIPPING BACK INTO THE WELL TO FINANCE ACQUISITIONS SAYS SETH LEHR AN INVESTMENT BANKER IN THE PHILADELPHIA OFFICE OF LEGG MASON INC BUT LENDERS ARE DEMANDING THAT BUYER EQUITY ACCOUNT FOR 20 TO 40 OF A PROPOSED ACQUISITION'S PRICE UP FROM 5 TO 20 IN THE BUYOUT BOOM OF THE 1980S HE NOTES LENDERS HAVE STARTED TO COME BACK VERY FORCEFULLY DURING THE PAST EIGHT TO NINE MONTHS SAYS P JEFFREY LECK A PARTNER OF FLORIDA CAPITAL PARTNERS INC A TAMPA BUYOUT FIRM THAT FOCUSES ON ACQUISITIONS COSTING BETWEEN 10 MILLION AND 30 MILLION THE FIRM ALREADY HAS BOUGHT THREE COMPANIES THIS YEAR EQUALING THE NUMBER PURCHASED IN ALL OF 1992 MR LECK SAYS ABOUT TWOTHIRDS OF HIS FINANCING CONSISTED OF LOANS MAINLY FROM UNITS OF HOUSEHOLD INTERNATIONAL INC FLEET FINANCIAL GROUP INC AND U S WEST CAPITAL CORP MONEY IS NOT ONLY MORE PLENTIFUL BUT ALSO CAN BE BORROWED AT LOW INTEREST RATES MR LECK ADDS THE LOW COST OF FUNDS ALLOWS BUYERS LIKE US TO BE A LITTLE MORE AGGRESSIVE 9308230064 930823 BUSINESS BRIEF KLOECKNERHUMBOLDTDEUTZ AG ENGINEERING GROUP TO CUT 1650 JOBS WITHIN GERMANY KLOECKNERHUMBOLDTDEUTZ AG THE COLOGNE GERMANY MACHINERY AND ENGINEERING GROUP SAID IT WILL CUT 1650 JOBS WITHIN GERMANY THE COMPANY SAID THE MEASURE WILL HELP TO REDUCE ITS GROUP WORK FORCE TO 9800 BY 1994 KLOECKNER EMPLOYED 12656 PEOPLE AT THE END OF 1992 THE COMPANY SAID THAT WHILE IT EXPECTED TO REACH AN AGREEMENT WITH THE MAJORITY OF THE WORKERS AFFECTED LAYOFFS COULDN'T BE EXCLUDED 9308230063 930823 INTERNATIONAL GECALSTHOM WINS KOREAN CONTRACT FOR BULLET TRAIN BY JULIA LICHTBLAU SPECIAL TO THE WALL STREET JOURNAL PARIS AFTER TWO YEARS OF INTENSE NEGOTIATIONS THE SOUTH KOREAN GOVERNMENT CHOSE ANGLOFRENCH GECALSTHOM NV'S BULLETTRAIN TECHNOLOGY FOR ITS 14 BILLION HIGHSPEED SEOULTOPUSAN LINE KOREA IS HANDING THE ANGLOFRENCH INDUSTRIAL GROUP A PRIZED BEACHHEAD IN ASIA FOR ITS SLEEK TRAINAGRANDEVITESSE OR TGV THE CONTRACT MARKS ANOTHER SIGNIFICANT DEFEAT FOR GECALSTHOM'S GERMAN AND JAPANESE RIVALS IN THE HIGHSPEEDTRAIN EXPORT WARS THE COMPANY'S VICTORY TAKES PLACE UNDER THE NOSE OF JAPAN THE FIRST TO BUILD A HIGHSPEED TRAIN SYSTEM BEGINNING IN 1964 FINAL DETAILS OF THE ASYETUNSIGNED 24 BILLION CONTRACT WILL BE NEGOTIATED BEFORE THE END OF THE YEAR GECALSTHOM OFFICIALS SAID AT A NEWS CONFERENCE HERE THEY EXPRESSED CONFIDENCE THE DEAL WOULD GO THROUGH GIVEN THAT CONSTRUCTION OF THE LINE HAS STARTED ANALYSTS SAID THAT GECALSTHOM'S VICTORY REFLECTS ITS GREATER EXPERIENCE OVER ITS GERMAN RIVAL SIEMENS AG SIEMENS' ICE TRAINS HAVE BEEN RUNNING FOR NINE YEARS LESS THAN THE TGVS AND ONLY IN GERMANY A JAPANESE GROUP HEADED BY MITSUBISHI HEAVY INDUSTRIES LTD WAS CUT FROM THE BIDDING IN JUNE THE CONSORTIUM WILL SUPPLY 46 TRAIN SETS EACH CARRYING AS MANY AS 1038 PASSENGERS THE KOREAN MODEL OF THE TGV WILL RUN AT 186 MILES AN HOUR GECALSTHOM A 5050 JOINT VENTURE OF FRANCE'S ALCATELALSTHOM NV AND GENERAL ELECTRIC CO OF BRITAIN NO RELATION TO GENERAL ELECTRIC CO OF THE US WILL SHARE THE CONTRACT WITH CEGELEC SA AN ALCATEL UNIT AND CSEE SA A SIGNAL COMPANY GECALSTHOM'S CHIEF EXECUTIVE OFFICER PIERRE BILGER WOULDN'T SAY EXACTLY WHAT PORTION OF THE CONTRACT WILL GO TO HIS COMPANY BUT HE SAID THAT LEGALLY WE'RE RESPONSIBLE FOR 90 THE WORK WILL BE SPLIT 5050 BETWEEN KOREAN SUBCONTRACTORS AND THE CONSORTIUM SERVICE IS SLATED FOR 1999 TRAPORTING 80 MILLION PEOPLE IN ITS FIRST YEAR THE TGV HAS EDGED OUT THE ICE IN SPAIN TEXAS AND FOR THE EUROPEAN SYSTEM LINKING PARIS BRUSSELS COLOGNE GERMANY AND AMSTERDAM IT WILL ALSO RUN THROUGH THE CHANNEL TUNNEL LINKING ENGLAND AND FRANCE OF THOSE PROJECTS ONLY THE SPANISH ONE IS ALREADY OPERATING THE TEXAS PROJECT IS IN THE PLANNING STAGE ONE REASON FOR THE INTENSE COMPETITION IS THAT HIGHSPEEDTRAIN DEVELOPMENT COSTS ARE SO HIGH AND CONTRACTS SO FEW PROJECTS CAN BE SUBJECT TO DELAYS FOR FUNDING AND ENVIRONMENTAL REASONS THE KOREAN GOVERNMENT IS SPEEDING UP THE PROJECT TO HELP STIMULATE THE ECONOMY 9308230062 930823 INTERNATIONAL FRENCH BUSINESS FAILURES PARIS THE NUMBER OF FRENCH BUSINESS FAILURES REGISTERED AT A SEASONALLY ADJUSTED 5128 IN JUNE A DECREASE OF 36 FROM MAY BUT AN INCREASE OF 21 FROM JUNE 1992 THE NATIONAL STATISTICS INSTITUTE REPORTED FRIDAY ON A NONADJUSTED BASIS THE INSTITUTE SAID BUSINESS FAILURES IN JUNE REGISTERED AT 5338 A DECLINE OF 19 FROM MAY 9308230061 930823 CRA ILVA PLAN JOINT VENTURE MELBOURNE AUSTRALIA CRA LTD A MINING COMPANY SAID IT WILL JOIN WITH ILVA STEEL GROUP OF ITALY TO BUILD A COKE PLANT IN INDIA AT A COST OF 28 MILLION AUSTRALIAN DOLLARS US191 MILLION CRA WILL FORM A JOINT VENTURE COMPANY WITH THE ITALIAN STEELMAKER TO BUILD AN 84OVEN COKE BATTERY WITH AN ANNUAL PRODUCTION OF 280000 METRIC TONS AT GOA IN WESTERN INDIA THE COMPANY SAID IT WILL SUPPLY COKING COAL TO THE NEW PLANT FROM ITS COAL FIELDS IN NEW SOUTH WALES AT A RATE OF THREE MILLION TONS A YEAR FOR 10 YEARS ILVA IS PART OF ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE ITALY'S GIANT STATEOWNED HOLDING COMPANY 9308230060 930823 BOMBAY STOCKS SURGE ON BUYING FROM ABROAD OTHER FACTORS ALSO HELP SOME BROKERS FRET OVER SIZE SPEED OF ADVANCE BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA INCREASING FOREIGN INTEREST IS FUELING A SURGE IN THE BOMBAY STOCK MARKET TO LEVELS IT HASN'T SEEN IN SEVERAL MONTHS BUT SOME BROKERS AND ANALYSTS WORRY THAT THE RISE DRIVEN ALSO BY GREATER CONFIDENCE IN THE MINORITY GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO AND OPTIMISTIC ECONOMIC PROJECTIONS HAS GONE TOO FAR TOO FAST THE RECOVERY OF THE MARKET IS RATHER TOO FAST SAYS MR MAYYA WHO LAST WEEK RETIRED AFTER 10 YEARS AS EXECUTIVE DIRECTOR OF THE BOMBAY STOCK EXCHANGE I'D RATHER IT HAD BEEN AT A SLOWER PACE A SUCCESSION OF SHARP INCREASES LAST WEEK IN THE BOMBAY SENSITIVE INDEX THE MARKET'S MAIN BAROMETER PROMPTED THE SECURITIES AND EXCHANGE BOARD OF INDIA OR SEBI TO BEGIN INQUIRIES TO DETERMINE WHETHER SOME DOMINANT SHARES HAVE BEEN SUBJECTED TO UNDUE SPECULATIVE PRESSURE THERE HAVE BEEN SOME VERY STRONG MARKET MOVEMENTS SAID PRADIP KAR EXECUTIVE DIRECTOR OF THE SEBI WE'RE LOOKING INTO WHETHER IT'S BEING FUELED BY GENUINE BUYERS AND SELLERS AND TO WHAT EXTENT IT'S SPECULATIVE SO THAT WE DON'T GET INTO THE KIND OF SITUATION THE MARKETS GOT INTO LAST YEAR IN EARLY 1992 REVELATIONS OF A 128 BILLION SECURITIES SCANDAL PROMPTED A MARKET COLLAPSE THAT HALVED STOCK PRICES BY AUGUST LAST YEAR FROM THEIR APRIL PEAK SINCE THAT DEBACLE BROKERS AND REGULATORS HAVE BEEN WARY OF ABRUPT MOVEMENTS IN THE MARKET THOUGH MORE RECENTLY THEY BELIEVED THAT SHARE PRICES HAVE LANGUISHED BELOW WHAT THE FUNDAMENTALS WARRANTED ON FRIDAY THE BOMBAY SENSITIVE INDEX CLOSED AT 274237 UP NEARLY 25 FROM JULY 27 THE DAY BEFORE MR RAO DEFEATED A NOCONFIDENCE MOTION IN THE LOWER HOUSE OF PARLIAMENT THE MARKET JUMPED 75 IN THE THREE DAYS AFTER THE VOTE THEN STEADIED BEFORE BEGINNING ITS MOST RECENT CLIMB BROKERS SAID THE GAINS OF THE PAST FEW WEEKS CAN BE ATTRIBUTED PARTLY TO VIGOROUS BUYING BY FOREIGN INVESTORS THE SEBI WHICH SO FAR HAS LICENSED 57 FOREIGN INSTITUTIONAL INVESTORS TO BUY INDIAN SHARES DECLINED TO GIVE DETAILS OF THEIR INVESTMENTS BUT SAID THE AMOUNT TOTALS BETWEEN 1 MILLION AND 2 MILLION A DAY THOUGH THAT'S A SMALL FRACTION OF AVERAGE DAILY TURNOVER OF 110 MILLION IN THE FIRST HALF OF AUGUST MARKET WATCHERS SAY FOREIGN INVESTORS ARE BUYING WITH A LONGERTERM VIEW NOT FOR QUICK SPECULATIVE GAINS WITH THIS MENTALITY YOU BEGIN TO HAVE A SERIOUS EFFECT ON THE MARKET SAID AJIT DAYAL A DIRECTOR OF JARDINE FLEMING INDIA SECURITIES PVT LTD TOTAL FOREIGN INVESTMENT IN INDIAN STOCKS SO FAR IS FAIRLY AHEAD OF 100 MILLION MR KAR SAID HE EXPECTS THE AMOUNT TO RISE STEADILY BUT IT IS BETTER THAT IT COMES SLOWLY DEALERS HANDLING FOREIGN ORDERS SAY THESE INVESTORS ARE TARGETING HOTEL FINANCE POWER TELECOMMUNICATIONS AND CEMENT STOCKS FOCUSING ON LARGE WELLRUN COMPANIES WHOSE SHARES ARE LIQUID I THINK AT THIS STAGE IT'S FUNDAMENTALLY A VERY ATTRACTIVE MARKET SAID DEPINDER BHATIA OF WI CARR FAR EAST LTD IN HONG KONG THOUGH HE EXPECTS THAT THE MARKET'S RECENT JUMPS WILL BE MODERATED BY CORRECTIONS HE CITES INDIA'S DECLINING INTEREST RATES AND INFLATION AND RISING EXPORTS AMONG THE FACTORS BUOYING FOREIGN INTEREST IN ADDITION BROKERS ARE BEGINNING TO TAKE POSITIONS THAT'S A VERY IMPORTANT SIGNAL THEY KNOW THE MARKET AND THEY'RE BUILDING THEIR BOOKS THE STEADY INFLOW OF FOREIGN INVESTMENT ALSO HAS PUT PRESSURE FOR CHANGE ON THE INDIAN BROKERAGE COMMUNITY INDIAN BROKERS PROTESTED THIS MONTH AGAINST COMMENTS JARDINE FLEMING MADE IN A CONFIDENTIAL REPORT TO CLIENTS IN MARCH A DOCUMENT THAT FOUND ITS WAY INTO THE INDIAN PRESS THE DOCUMENT TALKS OF RISKS IN DEALING WITH INDIAN BROKERS AND THE DIFFICULTY OF GETTING THEM TO EXECUTE ORDERS AT SPECIFIED PRICES BECAUSE OF THE VOLATILITY OF THE INDIAN MARKET DUE TO THE IMPOSSIBILITY OF VERIFYING REAL TRANSACTION PRICES INVESTORS WILL TYPICALLY BE SUBJECTED TO AT LEAST A 5 SPREAD BETWEEN ACTUAL AND REPORTED PRICES THE REPORT SAID ALTHOUGH SEVERAL BROKERS AGREE THAT THERE'S ROOM FOR REFORM MANY ARE ANGERED BY WHAT THEY SEE AS A SWEEPING DENUNCIATION OF THEIR COMMUNITY IF YOU ARE TRYING TO SELL YOURSELF AND ARE GOING TO COMPETE WITH INDIAN BROKERS DO IT DIRECTLY SAID PARAG PARIKH A LEADING INDEPENDENT BROKER THIS IS NEGATIVE MARKETING THE WRONG WAY TO DO IT JARDINE FLEMING SAID THE REMARKS WERE QUOTED OUT OF CONTEXT AND IN ANY CASE TAKEN FROM A CONFIDENTIAL DOCUMENT IT'S OUR POINT OF VIEW WE'RE ENTITLED TO IT AND WE HAPPEN TO THINK IT'S TRUE SAID RAFIQ DOSSANI A JARDINE FLEMING DIRECTOR SINCE THE SEBI WAS SET UP AT THE START OF 1992 IT HAS PRESSED BROKERS TO CHANGE THEIR PRACTICES IN SEVERAL AREAS AMONG OTHER THINGS THE AGENCY NOW REQUIRES THAT BROKERS ISSUE CONTRACT NOTES SPECIFY TRANSACTION PRICES SEPARATE FROM COMMISSIONS KEEP CLIENT AND BROKER FUNDS IN DIFFERENT ACCOUNTS AND HAVE THEIR BOOKS AUDITED IT WILL TAKE TIME TO GET THINGS DONE SAID MR KAR BUT GRADUALLY THEY'RE COMPLYING AND GRADUALLY WE'RE BRINGING ABOUT CHANGE 9308230059 930823 MANAGER'S JOURNAL NONPROFIT TRAINING FOR PROFITABLE CAREERS BY HOWARD ISENBERG CORPORATIONS INTERESTED IN ACCELERATING THE EDUCATION OF THEIR MOST PROMISING MANAGERS WOULD DO WELL TO LOOK NOT AT THE NATION'S BUSINESS SCHOOLS BUT AT WHAT MIGHT SEEM AN UNLIKELY PLACE AMERICA'S NONPROFIT ORGANIZATIONS CAREFULLY SELECTED VOLUNTEER EXPERIENCE IS A NEW FAST TRACK FOR HIGHPOTENTIAL MANAGERS IT CAN BE BOTH A TRAINING GROUND AND A PROVING GROUND FOR A COMPANY'S BEST PEOPLE THREE TO FIVE YEARS OF VOLUNTEER WORK CAN PROVIDE MANAGEMENT EXPERIENCE MOST CORPORATIONS COULDN'T PROVIDE OVER 20 YEARS IF IT CAME AT ALL NONPROFIT ORGANIZATIONS WHETHER INVOLVED WITH HEALTH SOCIAL SERVICES OR EDUCATION ARE FACING A PRODUCTIVITY SQUEEZE THEY HAVE TO PRODUCE MORE FOR LESS NONPROFITS TODAY NEED PEOPLE WITH REAL INSIGHTS INTO BUDGETING AND CASH FLOW PEOPLE WHO UNDERSTAND HOW TO UTILIZE INFORMATION SYSTEMS AND CREATE HUMAN RESOURCES PROGRAMS AND YES IN TODAY'S SLUGGISH ECONOMIC ENVIRONMENT THEY NEED MANAGERS WHO UNDERSTAND SALES AND MARKETING TO DO ALL THIS THEY NEED THE MANAGEMENT SKILLS THAT BUSINESS PEOPLE BRING ON THE OTHER SIDE OF THE ALLIANCE CORPORATIONS HAVE PROMISING YOUNG MANAGERS WHO DON'T GET THE CHANCE TO PRACTICE THOSE SKILLS BECAUSE THEY ARE NOT YET HIGH ENOUGH ON THE MANAGEMENT HIERARCHY NONPROFIT ORGANIZATIONS PROVIDE CORPORATE VOLUNTEERS A CHANCE TO PUT THEIR SKILLS TO WORK IMMEDIATELY WITH SIGNIFICANT RESPONSIBILITY SO WHILE THE VOLUNTEERS PROVIDE VALUABLE HELP TO THE NONPROFIT THEY ARE SHARPENING THE VERY SKILLS THAT MAKE THEM VALUABLE TO THEIR EMPLOYERS THIS IS NOT THEORY THE VALUE OF NONPROFIT EXPERIENCE IS BEING DEMONSTRATED RIGHT NOW IN A LIMITED NUMBER OF COMPANIES INCLUDING A FIRM I ONCE WORKED FOR WHEN I WAS PRESIDENT OF THE BARR DIVISION OF PITTWAY CORP I HAD A COLLEGETRAINED CHEMIST WORKING FOR ME WHO CLEARLY HAD POTENTIAL FOR MORE MANAGEMENT RESPONSIBILITY JIM WAS BRIGHT AND HARDWORKING WITH A PERSONAL COMMITMENT TO THE QUALITY OF WHATEVER HE WORKED WITH WHAT JIM LACKED WAS BROADER MANAGEMENT EXPERIENCE TO CLOSE THAT GAP I PROPOSED TO JIM THAT HE VOLUNTEER TO WORK ON HIS OWN TIME AND WITHOUT PAY WITH A CHICAGO ORGANIZATION CALLED OPTIONS FOR PEOPLE STARTED 15 YEARS AGO WITH A GRANT FROM THE FORD FOUNDATION OPTIONS FOR PEOPLE SPECIALIZES IN HELPING OTHERWISE UNEMPLOYABLE MEN AND WOMEN LEARN THE WORK AND SOCIAL SKILLS NECESSARY TO FIND AND HOLD A JOB IN KEEPING WITH OUR CORPORATE POLICY I URGED JIM TO TAKE ON THE ADDED RESPONSIBILITY ONLY IF HE FELT HE BELIEVED IN WHAT THE NONPROFIT GROUP WAS DOING AND FELT COMFORTABLE MAKING A MAJOR COMMITMENT LIKE MOST CAPABLE PEOPLE JIM ALREADY HAD COMMITMENTS BEYOND HIS JOB HE WAS MARRIED AND HAD SEVERAL YOUNG CHILDREN BUT THERE'S TRUTH TO THE OLD CLICHE THAT SAYS IF YOU WANT TO GET A JOB DONE RIGHT GIVE IT TO A BUSY PERSON JIM TOOK ON THE JOB OF VOLUNTEERING WITH OPTIONS FOR PEOPLE AND IT WAS THE BEGINNING OF A VERY PRODUCTIVE RELATIONSHIP FOR BOTH JIM AND THE ORGANIZATION OVER THE NEXT SEVERAL YEARS HE WORKED HIS WAY UP TO THE ORGANIZATION'S BOARD OF DIRECTORS ALONG THE WAY HE GAINED EXPERIENCE THAT NEVER WOULD HAVE COME HIS WAY IN OUR R&D LAB HE WAS ALMOST IMMEDIATELY MOVED INTO FUND RAISING THIS WAS FAR REMOVED FROM ANYTHING HE'D EVER DONE AND IT GAVE HIM NEW EXPERIENCE AND NEW CONFIDENCE AS A MEMBER OF THE BOARD HE FOUND HIMSELF CALLING ON CORPORATIONS TO PERSUADE THEM TO HIRE PEOPLE TRAINED BY OPTIONS FOR PEOPLE THE QUIET CHEMIST HAD BECOME A SALESPERSON AND A VERY GOOD ONE IN THE MORE OPEN ATMOSPHERE OF THE NONPROFIT WORLD JIM WAS ABLE TO TURN HIS CONSIDERABLE INTELLIGENCE TO RUNNING A FUNDRAISING GOLF OUTING HE HAD NEVER DONE THAT BEFORE I DON'T THINK HE EVEN PLAYED GOLF BUT HE RAN THE MOST SUCCESSFUL GOLF OUTING IN THE HISTORY OF THE ORGANIZATION IT'S BEEN FIVE YEARS SINCE HE BEGAN HIS SECOND CAREER AS A VOLUNTEER MANAGER THOSE FIVE YEARS HAVE BEEN GOOD FOR OPTIONS FOR PEOPLE AND GOOD FOR OUR COMPANY AS WELL THEY'RE A STRONGER ORGANIZATION AND WE'RE A MORE PRODUCTIVE COMPANY AND JIM IS BUSIER THAN EVER BUT WITH A GREAT SENSE OF PERSONAL AND PROFESSIONAL SATISFACTION JIM'S EXPERIENCE IS TYPICAL OF THE WINWIN SITUATION THAT'S POSSIBLE WHEN BUSINESS AND THE NONPROFIT SECTOR FORGE A STRATEGIC ALLIANCE EACH PARTNER IN THAT ALLIANCE IS IN A POSITION TO GIVE THE OTHER WHAT IT NEEDS MOST BY FAR THE BIGGEST ADVANTAGE TO THE VOLUNTEER MANAGER IS THE SPEED AT WHICH THE EXPERIENCE COMES CONSIDER A 28YEAROLD MIDDLE MANAGER WITH GOOD POTENTIAL PERHAPS WITH AN MBA IN THE NONPROFIT WORLD THAT MANAGER WILL VERY QUICKLY FIND AN OUTLET TO PRACTICE THE LESSONS LEARNED IN BUSINESS SCHOOL HE WON'T HAVE TO LET THOSE LESSONS FADE WHILE WAITING FOR THE CORPORATE RESPONSIBILITY NEEDED TO USE THEM IN THE NONPROFIT SECTOR THERE ARE FEWER BARRIERS STANDING BETWEEN A VOLUNTEER'S ABILITY AND A POSITION WHERE THAT ABILITY CAN BE PUT TO WORK AN INTELLIGENT VOLUNTEER WITH GOOD TIMEMANAGEMENT SKILLS CAN QUICKLY MOVE INTO A POLICYMAKING ROLE WITHIN A FEW YEARS OFTEN AS A MEMBER OF THE GROUP'S BOARD BUT EVEN THE FASTEST OF THE FASTTRACK MANAGERS IN THE PROFIT SECTOR ARE NOT APT TO FIND THEMSELVES IN A POSITION WITH BROAD OPERATING RESPONSIBILITY COMPANIES FEEL WITH SOME JUSTIFICATION THAT RESPONSIBILITY REQUIRES EXPERIENCE THE BEAUTY OF NONPROFIT VOLUNTEER WORK IS THAT IT GIVES OPERATING EXPERIENCE RELEVANT TO CORPORATE MANAGEMENT BUT GIVES IT MUCH FASTER SENIOR POSITIONS IN BUSINESS OR NONPROFIT ORGANIZATIONS INVOLVE SETTING POLICY LONGTERM STRATEGY AND KEEPING THE ORGANIZATION FOCUSED ON ITS PRIMARY GOALS WHETHER OR NOT A CORPORATE MANAGER EVER BECOMES A SENIOR EXECUTIVE OR BOARD MEMBER THE STRATEGIC EXPERIENCE OF WORKING FOR THE RIGHT NONPROFIT AGENCY WILL MAKE HIM A MORE CONFIDENT MORE VALUABLE EMPLOYEE GIVEN THE CRITICAL NEED OF BUSINESS FOR WELLSEASONED RESOURCEFUL MANAGERS AND THE EQUALLY CRITICAL NEED OF NONPROFITS FOR BUSINESS SKILLS THIS IS AN INVESTMENT THAT NEITHER SIDE CAN AFFORD TO PASS UP MR ISENBERG IS CURRENTLY GENERAL MANAGER OF CCL CUSTOM MANUFACTURING IN NILES ILL 9308230058 930823 INTERNATIONAL WASHINGTON INSIGHT US UNHAPPY WITH BEIJING'S ABUSE OF HUMAN RIGHTS FOCUSES ON OLYMPICS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEARLY THREE MONTHS AFTER THE CLINTON ADMINISTRATION EXTENDED CHINA'S FAVORABLE TRADING STATUS FOR ANOTHER YEAR AND CALLED FOR HUMANRIGHTS IMPROVEMENTS IN RETURN THE US IS SIGNALING THAT IT IS INCREASINGLY UNHAPPY WITH BEIJING'S BEHAVIOR AT HOME AND ABROAD A MAJOR EFFORT IS UNDER WAY IN CONGRESS WITH THE TACIT SUPPORT OF THE ADMINISTRATION TO PERSUADE THE INTERNATIONAL OLYMPIC COMMITTEE NOT TO PICK BEIJING TO HOST THE OLYMPIC GAMES IN THE YEAR 2000 HUMANRIGHTS GROUPS ARE CONTACTING US CORPORATE SPONSORS OF THE GAMES TO ENLIST THEM IN THIS EFFORT IN A FEW WEEKS THE ADMINISTRATION WILL DISPATCH A HIGHLEVEL TEAM TO INFORM CHINA'S LEADERS OF THE STEPS IT EXPECTS THEM TO TAKE TO RETAIN MOSTFAVOREDNATION TRADING STATUS WHICH PUTS CHINA'S EXPORTS INTO THE US ON A PAR WITH THOSE OF MOST OTHER COUNTRIES THE TIMING OF ALL THIS IS VERY CRUCIAL AFTER THE CHINESE RECEIVED MOSTFAVORED TRADING STATUS THEY BECAME CONVINCED THAT THE HEAT WAS OFF AND THAT COULD BECOME A REAL PROBLEM SAYS MIKE JENDRZEJCZYK WASHINGTON REPRESENTATIVE OF ASIA WATCH A PRIVATE HUMANRIGHTS GROUP THE MOST VISIBLE US EFFORTS CENTER ON BEIJING'S OLYMPICS BID THE HOUSE LAST MONTH PASSED A NONBINDING RESOLUTION URGING THE INTERNATIONAL OLYMPIC COMMITTEE NOT TO CHOOSE BEIJING BECAUSE OF CHINA'S POOR HUMANRIGHTS RECORD A LETTER ADVOCATING THE SAME VIEW AND SIGNED BY 60 US SENATORS WAS SENT THIS MONTH TO ALL 90 MEMBERS OF THE OLYMPIC COMMITTEE WHICH MEETS SEPT 23 TO CHOOSE A SITE FOR THE 2000 OLYMPIC GAMES AT A SENATE COMMERCE COMMITTEE HEARING IN JULY SEN BILL BRADLEY WHO WAS ON THE US BASKETBALL TEAM IN THE 1964 GAMES IN TOKYO MADE THE CASE FOR NOT REWARDING CHINA THE NEW JERSEY DEMOCRAT SAID I DO NOT BELIEVE WE SHOULD ALLOW THE CHINESE GOVERNMENT A HUGE PROPAGANDA VICTORY WHILE IT ROUTINELY TORTURES AND IMPRISONS POLITICAL DISSIDENTS SEVERELY RESTRICTS FREEDOM OF ASSEMBLY AND FREEDOM OF EXPRESSION BRUTALLY SUPPRESSES RELIGIOUS PRACTICES AND OPPRESSES THE NATIVE POPULATION OF TIBET OTHER CRITICS COMPLAIN THAT CHINA IS INSENSITIVE TO CONCERNS ABOUT THE RIGHTS ISSUE THE CHAIRMAN OF BEIJING'S OLYMPIC BID COMMITTEE THEY NOTE CALLED FOR THE CRACKDOWN ON PRODEMOCRACY DEMONSTRATORS AT TIANANMEN SQUARE IN 1989 WHEN HE WAS MAYOR OF THE CITY THOUGH THE WHITE HOUSE HAS REMAINED SILENT ON THE ISSUE THE ADMINISTRATION HAS SIGNALED ITS SUPPORT FOR CONGRESS'S ACTION IN A LETTER TO REP LEE HAMILTON D IND CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE WENDY SHERMAN ASSISTANT SECRETARY OF STATE FOR LEGISLATIVE AFFAIRS SAID THE ADMINISTRATION STRONGLY BELIEVES THAT A COUNTRY'S HUMAN RIGHTS PERFORMANCE SHOULD BE AN IMPORTANT FACTOR IN THE SELECTION OF A SITE FOR THE 2000 OLYMPICS BUT EVEN OPPONENTS OF GIVING THE GAMES TO BEIJING CONCEDE PRIVATELY THAT THEIR CAMPAIGN COULD BE COUNTERPRODUCTIVE THE OLYMPIC COMMITTEE WHICH WILL SELECT A SITE BY SECRET BALLOT CONSIDERS ITSELF ABOVE POLITICS AND RESENTS EFFORTS TO INFLUENCE IT ANITA DEFRANTZ A MEMBER OF THE COMMITTEE'S EXECUTIVE BOARD SAYS THE GROUP'S FIRST RESPONSIBILITY IS TO SELECT A SITE THAT WILL ENSURE THAT THE ATHLETES WILL HAVE A FAIR AND SAFE OPPORTUNITY TO COMPETE FOR THIS REASON THE ADMINISTRATION WILL DELIVER A MORE DIRECT MESSAGE TO CHINA WITH A DELEGATION HEADED BY JOHN SHATTUCK ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS MR SHATTUCK IS EXPECTED TO REMIND BEIJING THAT CONGRESS IS CALLING FOR A SIXMONTH PROGRESS REPORT ON CHINA'S BEHAVIOR AND THAT ABSENT IMPROVEMENTS IT WILL BE DIFFICULT TO RENEW BEIJING'S TRADE STATUS NEXT YEAR TO DATE CHINA'S PERFORMANCE RECEIVES A FAILING GRADE POLITICAL ARRESTS A REGULAR OCCURRENCE IN CHINA HAVE CONTINUED SINCE MR CLINTON RENEWED SPECIAL TRADE STATUS IN MAY FOR EXAMPLE ON JULY 4 FU SHENQI A PROMINENT DISSIDENT WAS SENTENCED TO THREE YEARS IN A REEDUCATION CAMP FOR SPEAKING TO FOREIGN REPORTERS ACCORDING TO ASIA WATCH CHINA ALSO HASN'T LIVED UP TO AN AGREEMENT TO COOPERATE WITH US OFFICIALS WHO ARE MONITORING WHETHER IT IS EXPORTING PRISONMADE GOODS TO THE US GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL ALSO SAYS CHINA CONTINUES TO VIOLATE OR SKIRT THE LAW BY SHIPPING MISSILES TO PAKISTAN AND SUPPLYING MISSILE TECHNOLOGY AND MANUFACTURING CAPABILITY TO SUCH NATIONS AS SYRIA AND IRAN THE US CURRENTLY IS ACCUSING CHINA OF SHIPPING INGREDIENTS FOR CHEMICAL WEAPONS TO IRAN THE BOTTOM LINE IS COOPERATION HAS BEEN MISERABLE AND IT HASN'T CHANGED SINCE THE EXECUTIVE ORDER ON TRADE WAS SIGNED SAYS MR JENDRZEJCZYK OF ASIA WATCH 9308230057 930823 TECHNOLOGY & HEALTH US TO TEST MICROGENESYS AIDS VACCINE AFTER FIRM TORPEDOES BROADER STUDY BY MARILYN CHASE AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL A GOVERNMENT EFFORT TO CONDUCT A MULTIYEAR TEST OF SEVERAL AIDS VACCINES WAS TORPEDOED BY MICROGENESYS INC'S REFUSAL TO DONATE ITS VACCINE FOR TESTING FEDERAL OFFICIALS SAID THE RESULT IS THAT ONLY MICROGENESYS' VACCINE WILL BE TESTED IN A ONEYEAR STUDY TWO OF THE BIGGEST ARMS OF THE FEDERAL GOVERNMENT THE DEPARTMENT OF DEFENSE AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TRIED FOR THE PAST SEVERAL MONTHS TO CONSTRUCT A TEST OF SEVERAL PROMISING PRODUCTS BUT RECENTLY GAVE UP AFTER MICROGENESYS OF MERIDEN CONN DECLINED TO GO ALONG INSTEAD THE PENTAGON IS RETURNING TO ITS CONTROVERSIAL PLAN MANDATED UNDER A LAW PUSHED THROUGH CONGRESS LAST YEAR TO SPEND 20 MILLION TESTING ONLY THE COMPANY'S VAXSYN VACCINE THE STUDY WOULD TEST THE VACCINE'S EFFECTIVENESS AS AN IMMUNESYSTEM BOOSTER IN ABOUT 10000 PEOPLE INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS THE SOLO STUDY IS IN CONTRAST TO A RECOMMENDATION BY A BLUERIBBON PANEL CONVENED BY THE NATIONAL INSTITUTES OF HEALTH THE PANEL CONCLUDED THAT SEVERAL CANDIDATE VACCINES SHOULD BE TESTED NOT JUST THE MICROGENESYS PRODUCT DEFERRING TO THAT RECOMMENDATION THE DEFENSE DEPARTMENT AGREED IN APRIL TO HAVE THE MANDATED STUDY BROADENED AND CONDUCTED UNDER THE AUSPICES OF THE NIH HOWEVER NIH WANTED MICROGENESYS TO DONATE ITS VACCINE AS THE OTHER PHARMACEUTICAL COMPANIES HAD AGREED TO DO BUT FEDERAL OFFICIALS SAID MICROGENESYS' REFUSAL FOR 2 1/2 MONTHS TO DO SO EFFECTIVELY SCUTTLED AN NIH MULTIPRODUCT TRIAL NOW THE DEFENSE DEPARTMENT IS GOING BACK TO THE ORIGINAL PLAN AND THE COMPANY WILL DONATE A ONEYEAR SUPPLY OF VACCINE TO THE DEPARTMENT PENTAGON OFFICIALS INDICATED MICROGENESYS SAYS IT CAN NOW DONATE ITS PRODUCT TO THE DEFENSE DEPARTMENT AFTER RECEIVING ASSURANCES THAT ITS DEVELOPMENT PARTNER THE WYETHAYERST DIVISION OF AMERICAN HOME PRODUCTS CORP WILL PICK UP THE TAB MICROGENESYS CHAIRMAN FRANKLIN VOLVOVITZ SAID HE HADN'T DEMANDED PAYMENT FROM THE GOVERNMENT BUT SAID HE HAD TOLD HHS THAT HIS COMPANY'S COSTS WOULD BE ABOUT 10 MILLION HE ASSERTED THAT HIS COMPANY WAS BEING UNFAIRLY CHARACTERIZED AS COMMERCIAL AND OBSTRUCTIVE IT'S A SAD COMMENTARY THAT THIS THING BECOMES A POLITICAL FOOTBALL HE SAID BUT VICTOR ZONANA A SPOKESMAN FOR HHS SECRETARY DONNA SHALALA SAID FRIDAY MICROGENESYS WAS DEMANDING 10 MILLION FOR ITS PRODUCT NIH NEVER EVER PAYS FOR A PRODUCT USED IN EXPERIMENTAL RESEARCH TO HAVE DONE SO IN THIS CASE WOULD HAVE SET A BAD PRECEDENT AND DRAINED FUNDS NEEDED TO CONDUCT A SCIENTIFICALLY SOUND TRIAL MR ZONANA ADDED THAT HIS DEPARTMENT REMAINS READY TO DIRECT A MULTIYEAR MULTIVACCINE TRIAL PROVIDED ALL COMPANIES COOPERATE ONE OBSTACLE TO A MULTIPRODUCT STUDY WAS THAT RESEARCHERS WANTED TO CONDUCT AN EXPENSIVE AND COMPLEX STUDY BUT SOON REALIZED THAT TESTING THREE OR FOUR VACCINES THIS WAY WOULD EXCEED THE 20 MILLION APPROPRIATED BY CONGRESS THE STUDY IN QUESTION INVOLVED ONLY SOCALLED THERAPEUTIC VACCINES INTENDED TO ALLAY SYMPTOMS IN PEOPLE ALREADY CARRYING THE HUMAN IMMUNODEFICIENCY VIRUS AND NOT PREVENTIVE VACCINES THAT ARE THE SUBJECT OF SEPARATE FEDERAL STUDIES SEVERAL RIVAL VACCINE DEVELOPERS READ THE NEWS OF MICROGENESYS' VICTORY IN THE JOURNAL SCIENCE LAST WEEK I'M FLABBERGASTED SAID G KIRK RAAB PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENENTECH INC A BIOTECH COMPANY BASED IN SOUTH SAN FRANCISCO CALIF IT'S PATHETIC THAT THE GOVERNMENT WOULD SPEND TAXPAYERS' MONEY FOR AIDS RESEARCH IN SUCH AN UNSCIENTIFIC AND POLITICAL WAY ANOTHER VACCINE DEVELOPER CHIRON CORP EMERYVILLE CALIF SAID THROUGH A SPOKESMAN DECISIONS ABOUT CLINICAL STUDIES SHOULD BE MADE BY OBJECTIVE KNOWLEDGEABLE GROUPS USING SCIENTIFIC AND MEDICAL DATA AND NOT ON THE FLOORS OF CONGRESS BASED ON WHO HAS THE BEST LOBBYIST A THIRD COMPANY IMMUNO AG VIENNA AUSTRIA IS STILL INTERESTED IN PARTICIPATING IN ANY LARGE COMPARATIVE TRIAL A NEW YORKBASED SPOKESWOMAN SAID FEDERAL AIDS RESEARCHERS RENEWED THEIR OPPOSITION TO THE SOLO MICROGENESYS STUDY WE STAND BY THE RECOMMENDATION OF THE NIH BLUERIBBON COMMITTEE WHICH WAS THAT IF A TRIAL WAS TO BE DONE IT BE DONE WITH MULTIPLE VACCINE CANDIDATES SAID THE TOPRANKED FEDERAL AIDS RESEARCHER ANTHONY FAUCI DIRECTOR OF THE NIH'S NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES 9308230056 930823 LETTERS TO THE EDITOR WE'RE TOO BUSY TO FIGHT A MOMMY WAR' YOUR JULY 23 PAGEONE ARTICLE STAYATHOME MOMS ARE FASHIONABLE AGAIN IN MANY COMMUNITIES SCREAMS JUST A BIT TOO LOUDLY IF THE INTENT OF THOSE INTERVIEWED WAS TO EXTOL THE VIRTUES OF FULLTIME PARENTING THEIR ARGUMENT IN THE END TURNED ON ITSELF IT IS SAD TO SEE OTHERWISE INTELLIGENT WOMEN FEELING THE NEED TO CONDEMN THEIR WORKING COUNTERPARTS AS INADEQUATE PARENTS IT IS EVEN SADDER TO HEAR A MOTHER TELL HER SON THAT HIS BEST FRIEND IS DEPRIVED BECAUSE THE FRIEND'S MOTHER DOES NOT PICK HIM UP UNTIL 6 PM OR TO SAY THAT SHOOTING ACORNS RESULTS FROM AN EMPLOYED MOTHER OUR SOCIETY'S WEAKENING MORAL FABRIC WAS WOVEN BY ADULTS RAISED IN TRADITIONAL SETTINGS GOOD VALUES NOT GOOD COOKIES MAKE THE DIFFERENCE AS A PARTNER IN AN INTERNATIONAL ACCOUNTING FIRM AND AS THE MOTHER OF TWO CHILDREN I BELIEVE THAT WOMEN SHOULD HAVE THE FREE CHOICE TO WORK FULLTIME PARTTIME OR NOT AT ALL AND I AM TREMENDOUSLY EXCITED THAT MY FIRM RECENTLY HAS LAUNCHED A BROADBASED INITIATIVE TO RETAIN AND ADVANCE WOMEN YOUR ARTICLE HOWEVER IS NOT ONLY COUNTERPRODUCTIVE TO ACHIEVING A LEVEL PLAYING FIELD IN THE WORKPLACE BUT IT ALSO DEMEANS MOTHERS WHO CHOOSE NOT TO WORK OUTSIDE THE HOME BY LIKENING THEM TO A STATUS SYMBOL OR FASHION ARTICLE THE EQUIVALENT OF A BMW A DECADE AGO HAVEN'T WE BEEN OVER THIS BEFORE THERE IS NO WAR BETWEEN WOMEN WHO WORK AT HOME AND THOSE WHO WORK OUTSIDE THE HOME BOTH ARE TOO BUSY WOMEN ARE NOT FIGHTING WITH ONE ANOTHER OVER THE ISSUE OF CARING FOR CHILDREN THE ONLY MATERNALLY CORRECT THING IS THE PATERNALLY CORRECT THING AS WELL LOVE AND CARE FOR YOUR CHILDREN SHARE PRECIOUS TIME WITH THEM GUIDE AND PRAISE THEM WOMEN WORK FOR THE SAME REASONS MEN DO IF 56 OF THEM MIGHT QUIT THEIR JOBS 56 OF MEN WOULD LIKELY DO THE SAME FROM CEO DOWN MOST PREFER TO WORK BUT THEY WOULD GLADLY TAKE MORE TIME WITH THEIR FAMILIES THE KEY IS TO WORK SMART NOT LONG LIKE IT OR NOT QUANTITY OF WORK DOES NOT EQUATE WITH QUALITY WOMEN AND MEN TAKE CARE OF CHILDREN HATS OFF TO EITHER IF THEY WANT TO AND CAN BE HOME TEMPORARILY OR PERMANENTLY BUT THERE IS NO MOMMY WAR NO SURPRISING VICTOR OUR NATION'S CHILDREN MAY BE ILLSERVED RIGHT NOW BUT NOT BECAUSE WOMEN HAVE ENTERED THE WORK FORCE COLLECTIVELY WE HAVE FAILED OUR CHILDREN IN MANY WAYS AMONG THESE IS OUR FAILURE TO CREATE AFFORDABLE QUALITY CHILD CARE AND TO PROVIDE OPTIONS TO THE WOMEN AND MEN WHO ARE BALANCING WORK AND FAMILY AMONG THE MOST EFFECTIVE AND SENSIBLE SOLUTIONS ARE PARENTAL LEAVES AND FLEXIBLE WORK ARRANGEMENTS AS WELL AS CORPORATE SPONSORSHIP OF ANY OF SEVERAL QUALITY CHILD CARE INITIATIVES PROGRESSIVE BUSINESSES HAVE REALIZED THAT WORK AND FAMILY POLICIES RETAIN TALENTED EMPLOYEES AND EASE TENSIONS THAT HAMPER WORKER PRODUCTIVITY AND MOTIVATION YET MOST BUSINESSES HAVE NOT GOTTEN THE MESSAGE IN 1990 THE EMPLOYEE BENEFIT RESEARCH INSTITUTE FOUND THAT ONLY 107 OF THEIR SAMPLE OF 2608 WORKING WOMEN HAD ACCESS TO ANY CHILD CARE BENEFITS CURRENTLY 40 OF ALL EXECUTIVE AND MANAGERIAL JOBS ARE HELD BY WOMEN CATALYST RESEARCH SHOWS THAT WHEN WOMEN LEAVE SUCH JOBS THEY SEARCH FOR ENVIRONMENTS WHERE GENDER DOESN'T IMPEDE ADVANCEMENT OR IN WHICH THEY HAVE FLEXIBILITY TO BALANCE WORK AND FAMILY DEMANDS YOUR ARTICLE WAS A NICE COMPANION PIECE TO YOUR RECENT ARTICLES ON MOMS AND NANNIES ALL THREE OF THE ARTICLES WERE MISSING A COMMON COMPONENT WHERE ARE THE FATHERS SINCE YOU NOTE THAT MOST OF YOUR SUBJECTS HAVE A GOOD DEAL OF MONEY I PRESUME THEY ARE NOT SINGLE WOMEN YOUR IMPLICATION IS THAT CHILD REARING IS THE MOTHER'S RESPONSIBILITY LET'S HEAR ABOUT THE OTHER HALF OF THE PARTNERSHIP I DOUBT THE WOMEN QUOTED ARE TYPICAL OF ANY TREND AND I WOULD WAGER THE RECESSION AND RELATED UNEMPLOYMENT HAVE MORE TO DO WITH THEIR NOT WORKING THAN A RETURN TO NORMAL VALUES WHETHER THEY REALLY WANT TO STAY AT HOME OR ARE IN FACT MAKING A VIRTUE OUT OF NECESSITY MATTERS NOT AT ALL TO ME BUT I WONDER WHY IF THEY ARE AS HAPPY AS THEY SAY THEY NEED TO RIDICULE AND CRITICIZE WOMEN WHO FOR WHATEVER REASON HAVE MADE OTHER CHOICES CULTURES CONTINUALLY DEFINE AND REDEFINE NORMATIVE BEHAVIOR POLEMICS BY ADHERENTS TO A PARTICULAR METHOD OF CHILD REARING HAVE ALWAYS BEEN PRESENT SHOULD A CHILD BE NURSED BY THE MOTHER OR BY A WET NURSE WE FIND THAT QUESTION PREPOSTEROUS BUT IT WAS DEBATED DURING THE RENAISSANCE IN OUR CENTURY WE HAVE ARGUED WHETHER BREASTFEEDING OR BOTTLEFEEDING IS BEST FOR MOTHER AND CHILD SHOULD A MOM STAY AT HOME FULLTIME SHOULD SHE WORK PARTTIME SHOULD SHE WORK FULLTIME IT DEPENDS SOME MOMS ARE BETTER MOMS BECAUSE THEY ARE HOME FULLTIME AND OTHER MOMS ARE BETTER MOMS BECAUSE THEY DO WORK FULLTIME THERE IS NO SUCH THING AS MATERNALLY CORRECT BECAUSE EACH PARENT AS WELL AS EACH CHILD IS AN INDIVIDUAL WITH PARTICULAR NEEDS AND EACH FAMILY IS A DISTINCT UNIT WITH ITS OWN DEMANDS I BELIEVE THERE ARE MANY WOMEN OUT THERE LIKE ME IN A CERTAIN RESPECT BY WORKING OUTSIDE THE HOME I FEEL I AM A BETTER MOTHER WHEN I AM HOME I ENJOY BEING OUT IN THE WORKPLACE AND FEEL IT GIVES ME A PERSPECTIVE THAT HELPS ME BE A MORE EFFECTIVE PARENT TO SAY THAT KIDS WHOSE MOMS STAY HOME ARE SMARTER IS SIMPLY WISHFUL THINKING INTELLIGENCE IS IN THE GENES AND SINCE MANY OF THE UPSCALE WOMEN IN THE ARTICLE HAD WELLPAYING PROFESSIONAL JOBS IT IS REASONABLE TO ASSUME THEY ARE INTELLIGENT THEIR CHILDREN ARE LIKELY TO BE SMART I FIND THE COMMENT BY S DAVID ELLISON OFFENSIVE TO MY KNOWLEDGE STAYING HOME OR NOT HAS ABSOLUTELY NOTHING TO DO WITH NORMAL MORE BASIC VALUES MANY HARDWORKING GODFEARING LAWABIDING PARENTS DO A WONDERFUL JOB OF INSTILLING VALUES IN THEIR CHILDREN MUCH OF THE ALLEGED MOMMY WAR OWES ITS EXISTENCE TO A THE MEDIA'S EAGERNESS TO CREATE IT AND WRITE ABOUT IT AND B SHEER IMPOLITENESS ON THE PART OF SOME PEOPLE IN THEIR WILLINGNESS TO CRITICIZE OTHERS DO I HAVE AN OPINION ON THE STAYATHOME VS WORKOUTSIDETHEHOME ISSUE YES WOULD I DREAM OF EXPRESSING THIS OPINION UNSOLICITED TO OTHER PARENTS PARTICULARLY IF THAT MEANT I WOULD APPEAR TO BE DISAPPROVING OF THEIR LIVES NO PLEASE TAKE THE LEAD IN RIDDING OUR LANGUAGE OF THE ABSURD TERM WORKING MOTHER ALL MOTHERS WORK INSIDE THE HOME OUTSIDE THE HOME OR BOTH THE CONSTANT MEDIA BLUDGEONING OF WORKING AND NONWORKING MOMS CONSTANTLY OVERLOOKS THE OBVIOUS QUESTION WHERE'S DAD AND MORE IMPORTANT CAN HE MAKE A PIE CRUST OR DECORATE COOKIES NOT ONLY ARE MEN'S FAULTS AND RESPONSIBILITIES NEVER CALLED INTO QUESTION BUT THEIR MISBEHAVIOR IS BLAMED ON WOMEN WHEN YOU RECOUNT THE STORY OF A LITTLE BOY PELTING ROCKS AT SQUIRRELS A WOMAN HIS WORKING MOM IS CLEARLY TO BLAME HEAVEN FORBID ANYONE SHOULD SUGGEST LITTLE BOYS ARE PRONE TO THIS TYPE OF BEHAVIOR FURTHER NO ONE EVER VENTURES TO QUESTION WHETHER THESE TENDENCIES SUGGEST AN INHERENT FLAW IN MALES IT MUST BE A WOMAN'S FAULT WHEN I WAS 12 MY GIRL SCOUT LEADER TOLD ME THAT MY WORKING MOTHER DIDN'T LOVE ME BECAUSE SHE DIDN'T STAY AT HOME I CRIED ON MY WALK HOME FROM GIRL SCOUTS THAT DAY NOT BECAUSE I BELIEVED HER I DIDN'T BUT BECAUSE I COULDN'T BELIEVE SHE COULD SAY SOMETHING SO CRUEL ABOUT THE MOMMY I LOVED SO MUCH AS A 26YEAROLD WHO HAS A TERRIFIC JOB ON CAPITOL HILL MY FUTURE HOLDS GREAT CHALLENGES AND DREAMS MARRIED ONLY A YEAR MY HUSBAND AND I ARE PLANNING TO BUY OUR FIRST HOME AND LOOK FORWARD TO THE DAY WHEN WE WILL BE PARENTS BUT I KNOW I WILL WORK BEFORE AND AFTER OUR CHILDREN'S BIRTHS FOR FINANCIAL EMOTIONAL AND PERSONAL REASONS I SEE WOMEN WHO CONSTANTLY STRUGGLE WITH WORKING OUTSIDE THE HOME AND CARING FOR THEIR CHILDREN I SEE WOMEN BATTLING TO ANSWER THE QUESTION AM I DOING THE RIGHT THING I SEE WOMEN WHO FEEL TREMENDOUS PANGS OF GUILT EVERY TIME THEY LEAVE THEIR CHILD AT A DAY CARE CENTER THIS DEBATE COULD SHAPE THE FUTURES OF OUR DAUGHTERS WILL THEY BE ABLE TO MAKE CHOICES ABOUT THEIR FUTURE FREE OF THE SOCIETAL REQUIREMENTS THAT BREED GUILT AND ANXIETY IN MOTHERS TODAY YOU QUOTED ONE MAN SAYING IF YOU'VE MADE THE COMMITMENT TO HAVE CHILDREN YOU HAVE TO DEVOTE ENERGY TO THEM YOUR ARTICLE IMPLIED THAT WORKING WOMEN DON'T DO THAT YOU'RE WRONG MILLIONS OF WOMEN PROVE YOU WRONG EVERY DAY MY MOTHER IN HER OWN QUIET WAY PAVED THE WAY FOR THE REST OF US WHO HAVE CHOSEN TO HAVE CAREERS AND FAMILIES TO THIS DAY I'VE NEVER TOLD MY MOM WHAT MY GIRL SCOUT LEADER TOLD ME THAT DAY BECAUSE I DIDN'T WANT TO HURT HER SHE WAS AND STILL IS THE MOST BEAUTIFUL COURAGEOUS AND WONDERFUL MOTHER IN THE WORLD AND I ALWAYS KNEW THAT WORKING OR NOT SHE LOVED ME MORE THAN ANYTHING 9308230054 930823 COMMODITIES MORE INVESTORS TRY PLAYING COMMODITIES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDIVIDUAL INVESTORS MAY BE IN LOVE WITH STOCKS AND BONDS BUT THEY'RE STARTING TO FLIRT WITH COMMODITIES FOR NEARLY THREE YEARS FALLING INTEREST RATES HAVE BEEN DRIVING INVESTORS AWAY FROM BANK CERTIFICATES OF DEPOSIT AND OTHER SAFE INVESTMENTS AND INTO STOCKS AND BONDS NOW SOME OF THE MORE ADVENTUROUS OR NAIVE INDIVIDUAL INVESTORS ARE LOOKING FOR EVEN QUICKER OR FATTER RETURNS FROM COMMODITIES AND FUTURES THERE'S A LOT OF RETAIL MONEY SLOSHING AROUND LOOKING FOR A HOME FOR SOMETHING THAT STANDS A GOOD CHANCE OF APPRECIATING OBSERVES IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING FOR CREDIT SUISSE IN NEW YORK SOME OF THAT MONEY FOR BETTER OR WORSE IS FINDING A HOME IN SUCH TANGIBLE ASSETS AS PRECIOUS METALS WHICH HAVE HAD A GOOD RUN THIS YEAR AND THE BIG INVESTMENT FIRMS ARE TRYING TO TAP THAT INTEREST BY OFFERING WHAT AMOUNT TO MUTUAL FUNDS FOR COMMODITIES INVESTORS MERRILL LYNCH DEAN WITTER PAINEWEBBER PRUDENTIAL SECURITIES AND SMITH BARNEY SHEARSON HAVE ALL INTRODUCED MANAGED FUTURES FUNDS OR EQUIVALENT INVESTMENT VEHICLES OVER THE PAST FEW YEARS MR MACDONALD NOTES THAT THE BIG COMMODITY PRICE MOVES SUCH AS GOLD'S RECENT 15 RALLY ARE DRIVEN BY PROFESSIONAL SPECULATORS BETTING INSTITUTIONAL MONEY BUT LENDING ADDITIONAL SUPPORT FOR SUCH RALLIES HAS BEEN A GROWING POOL OF RETAIL CAPITAL OFTEN MANAGED BY PROFESSIONAL TRADERS PART OF THE REASON FOR THE RENEWED INTEREST IN COMMODITIES AMONG INDIVIDUAL INVESTORS IS SIMPLY THE INCREASED PUBLIC AWARENESS OF BIG MOVES THIS YEAR IN NOT ONLY GOLD PRICES BUT IN THE PRICES OF LUMBER NATURAL GAS AND GRAINS THE LATTER THE SHORTLIVED RESULT OF THE EXTRAORDINARY FLOODING IN THE MIDWEST INDEED AFTER MORE THAN A DECADE OF DEPRESSED OR ANEMIC COMMODITY PRICES VOLATILITY THE RAISON D'ETRE OF COMMODITY SPECULATORS HAS RETURNED TO A NUMBER OF MARKETS AND EVEN LONGTERM INVESTORS FIND SOLACE IN THE STEADILY RISING PRICES OF A FEW COMMODITIES TEMPERING THE ENTHUSIASM HOWEVER IS A RELATIVELY BENIGN INFLATION OUTLOOK FOR THE ECONOMY AS A WHOLE WE'RE RUNNING NECK AND NECK TO WHAT WE DID IN 1987 WHICH WAS OUR BEST YEAR EVER IN OPENING NEW ACCOUNTS SAID BARRY LIND CHAIRMAN OF CHICAGOBASED LINDWALDOCK & CO THE US'S LARGEST FUTURES DISCOUNT BROKERAGE STILL COMMODITIES ALWAYS HAVE BEEN AMONG THE RISKIEST OF FINANCIAL INVESTMENTS AND THOSE RISK FACTORS REMAIN WE TELL EVERYBODY THAT FUTURES TRADING IS ONLY FOR RISKTAKING MONEY THAT YOU CAN AFFORD TO LOSE WARNS MR LIND AND LOSE IT THEY OFTEN DO INDUSTRY EXPERTS SAY THAT AS MANY AS 90 OF INDIVIDUAL INVESTORS INVESTING DIRECTLY IN COMMODITIES LOSE MONEY THE ODDS ARE A LOT BETTER WITH FUNDS BUT STILL FAR FROM REASSURING MR LIND BRAGS THAT ONLY 75 OF SMALL ACCOUNTS AT HIS FIRM SHOW LOSSES STILL PEOPLE KEEP CALLING BECAUSE THEIR CURIOSITY IS PIQUED AND MANY ARE FOLLOWING THROUGH WITH ORDERS PROBABLY HALF THE PEOPLE WHO CALL US HAVE NEVER TRADED FUTURES BEFORE THAT'S THE LARGEST PERCENTAGE WE'VE SEEN HE SAYS ONE NOVICE COMMODITY INVESTOR IS JAKE HOOKER A 40YEAROLD FORMER ROCK MUSICIAN AND CURRENT OWNER OF HOOKER ENTERPRISES INTERNATIONAL A LOS ANGELES ENTERTAINMENT COMPANY SINCE MAY HE'S BEEN WAKING UP EVERY DAY AT 430 AM PACIFIC TIME TO TRADE FUTURES IN BONDS CURRENCIES AND GOLD FROM HIS HOME HE USES A CUSTOMDESIGNED COMPUTER SYSTEM TO MONITOR PRICES IN THE MAJOR FUTURES CONTRACTS I MAKE MY OWN DECISIONS I DON'T ASK FOR OR WANT ADVICE FROM MY BROKER HE SAYS IT'S ONE OF THE MOST EXCITING THINGS I'VE DONE MR HOOKER SAYS HE DOESN'T LET THE EMOTIONAL RUSH OF TRADING ON SPLITSECOND PRICE MOVES BLUR HIS VISION OF THE RISK IF YOU'RE A GOOD TRADER YOU HAVE TO HAVE GREAT MONEY MANAGEMENT THE ONLY THING YOU CAN CONTROL IS YOUR RISK THE AMOUNT OF MONEY YOU'RE GOING TO LOSE CERTAINLY HE DOESN'T EXPECT TO BE AMONG THE LOSERS AS THE COMPOSER OF A NO 1RANKED ROCK AND ROLL HIT I LOVE ROCK AND ROLL HE FEELS THE ODDS ARE WITH HIM THE WAY I FIGURE IT THE ODDS OF EVER WRITING A NO 1 HIT SONG ARE ABOUT AS GOOD AS BECOMING A SUCCESSFUL COMMODITIES INVESTOR ABOUT ONEHALF OF ONE PERCENT HE SAYS I'M A HALFPERCENTER FOR THOSE WILLING TO TAKE A GAMBLE FOR THE FIRST TIME IN THE COMMODITY AND FUTURES MARKETS WHERE BOTH PROFIT AND LOSS IS AMPLIFIED BY LEVERAGE AND PRICE SWINGS ARE SWIFT IN EITHER DIRECTION WITNESS THE RECENT 22 SINGLEDAY FALL IN GOLD PRICES ATTENTION IS CENTERED ON POTENTIAL PLAYS IN TRADITIONAL COMMODITIES SUCH AS PRECIOUS METALS ENERGY AND GRAINS AND NOT IN THE MORE ESOTERIC FINANCIAL FUTURES PRODUCTS PREFERRED BY THE PROFESSIONAL SPECULATORS MR LIND SAYS THIS IS THE FIRST TIME THAT I CAN REMEMBER WHEN SEVEN OF OUR TOP 12 VOLUME LEADERS WERE TRADITIONAL COMMODITY MARKETS HE SAYS NORMALLY IT'S ONLY ONE OR TWO ADDS RICK D LEESLEY PRESIDENT OF JACK CARL/312 FUTURES ANOTHER LEADING DISCOUNT BROKERAGE IN CHICAGO THE GULF WAR CREATED A LOT OF INTEREST IN COMMODITIES CENTERED ON OIL AND OIL PRODUCTS BUT THAT WAS SHORTLIVED NOW WE'RE SEEING A BROADBASED RESURGENCE IN THE OVERALL BUSINESS OUR BUSINESS IS UP AT LEAST 40 OVER A YEAR AGO AND I DON'T THINK'S IT'S A FLASH IN THE PAN WHAT MR LEESLEY AND OTHER COMMODITY PROFESSIONALS SEE AS THE MOST SIGNIFICANT DEVELOPMENT IN THE RETAIL BUSINESS IS THE NUMBER OF INVESTORS TURNING TO PUBLIC PROFESSIONALLY MANAGED COMMODITY OR FUTURES FUNDS TO PLAY THE MARKETS AT THE PROFESSIONAL'S DISCRETION PROFESSIONALLY MANAGED FUNDS HAVE TAKEN ON THE ROLE OF INVESTING FOR RETAIL INVESTORS IN MUCH THE SAME FASHION THAT MUTUAL FUNDS HAVE TAKEN OVER FOR RETAIL INVESTORS IN STOCKS AND BONDS SAYS TOM MAURO VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR CARGILL INVESTOR SERVICES IN CHICAGO ONE OF THE NATION'S BIGGEST FUTURES BROKERAGE FIRMS LAST YEAR SOME 19 BILLION OF INVESTORS' MONEY WAS BEING MANAGED BY MANAGEDFUTURES TRADING ADVISERS WORLDWIDE ACCORDING TO ESTIMATES BY MANAGED ACCOUNT REPORTS A TRADE PUBLISHING FIRM THAT TRACKS THE INDUSTRY THAT COMPARES WITH 114 BILLION IN 1991 AND 85 BILLION IN 1990 OVER THE PAST FIVE YEARS THE FIGURE HAS RISEN MORE THAN SEVENFOLD THE FIRM SAYS WHILE PUBLIC MANAGEDFUTURES FUNDS HAVE CERTAIN DRAWBACKS INCLUDING RELATIVELY HIGH FEE STRUCTURES THEY CAN LESSEN RISK THROUGH INVESTMENT IN A DIVERSE SET OF COMMODITY AND FUTURES CONTRACTS BOTH DOMESTIC AND INTERNATIONAL ACCORDING TO FUTURES PROFESSIONALS OFFSHORE FUNDS WHICH ARE NOT REGULATED BY US AGENCIES SUCH AS THE COMMODITY FUTURES TRADING COMMISSION ARE NOT OPEN TO US INVESTORS AND TYPICALLY HAVE VERY HIGH MINIMUM INVESTMENT REQUIREMENTS SOME MANAGED FUTURES PROFESSIONALS PREDICT FUNDBASED INVESTMENT IN COMMODITIES AND FUTURES WILL ALL BUT ECLIPSE DIRECT RETAIL INVESTMENT IN THE PAST FIVE YEARS WE'VE REACHED CRITICAL MASS IN FUTURES FUNDS SAYS HUNT TAYLOR MANAGING DIRECTOR OF REYNWOOD TRADING IN SHORT HILLS NJ THERE'S MORE RETAIL MONEY AVAILABLE THAN EVER BUT THAT MONEY SITS IN POOLS IN THE HANDS OF PROFESSIONALS WHO PUT THAT CAPITAL INTO CURRENCY FUTURES WHEN APPROPRIATE IN GRAINS AND METALS WHEN APPROPRIATE THERE'S ALSO A GREATER DIVERSITY OF TRADING STRATEGY THAN EVER BEFORE 9308230052 930823 OTC FOCUS WIRELESS CABLE' ISSUES ARE FLYING HIGH BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ON WALL STREET WIRELESS IS SYNONYMOUS WITH SKYROCKETING STOCK PRICES SHARES OF THREE CABLE COMPANIES THAT DON'T USE WIRES OR CABLES HAVE GONE THROUGH THE ROOF AND INVESTORS JUST KEEP BIDDING THE STOCKS HIGHER PEOPLE'S CHOICE TV WHICH MADE ITS DEBUT LAST MONTH CLOSED AT 28 1/2 ON FRIDAY MORE THAN TWOANDAHALF TIMES ITS INITIAL OFFERING PRICE OF 10 1/2 IN JUST TWO WEEKS OF TRADING PREFERRED ENTERTAINMENT NEARLY DOUBLED ITS PRICE CLIMBING 2 1/4 TO 31 3/4 ON FRIDAY FROM ITS OFFERING PRICE OF 15 1/2 ACS ENTERPRISES JUST THREE MONTHS AGO WAS TRADING AT ONETHIRD ITS CURRENT STOCK PRICE IT JUMPED 1 1/2 TO 38 1/2 ON FRIDAY THAT'S HOT ACTION EVEN FOR WIRELESS STOCKS SOME OF WALL STREET'S HOTTEST ITEMS THESE DAYS AND IT'S ESPECIALLY IMPRESSIVE CONSIDERING THAT NONE OF THE THREE HAVE ANY EARNINGS THERE IS NO QUESTION THESE STOCKS ARE 100 MORE VALUABLE THAN THEY WERE A COUPLE OF WEEKS AGO SAYS SCOTT BILLEADEAU A SENIOR ANALYST AT PACIFIC CENTURY ADVISERS IN SAN DIEGO WHICH OWNS SHARES IN PREFERRED ENTERTAINMENT IT'S NOT NECESSARILY THE COMPANY IT'S THE VALUE OF THE BANDWIDTH OR RADIO FREQUENCY THAT THE MARKET IS BIDDING UP YES WIRELESS CABLE IS A CONTRADICTION IN TERMS THE TECHNOLOGY DOESN'T USE CABLES AT ALL IT'S AN ALTERNATIVE TO THE CABLE DELIVERY SYSTEM IT USES MICROWAVE FREQUENCIES TO TRANSMIT CHANNELS FROM A CENTRAL TOWER TO SMALL HOUSEHOLD ANTENNAS BUT THE WIRELESS SYSTEM REQUIRES LINEOFSIGHT TRANSMISSION ITS AVERAGE RANGE IS 30 TO 40 MILES AND IT OPERATES BEST IN FLAT TERRAIN ALTHOUGH THE RADIO WAVES CAN BE BENT AROUND SOME OBSTACLES TO A SLIGHT EXTENT THE INDUSTRY IS WORKING ON THE CAPABILITY TO BEND THEM EVEN MORE THERE'S NOTHING PARTICULARLY NEW ABOUT THE TECHNOLOGY OF WIRELESS CABLE WHAT IS RELATIVELY NEW IS THAT JUST LAST YEAR CONGRESS VOTED TO MAKE PROGRAMMERS END THE PRACTICE OF HAVING ONLY EXCLUSIVE CONTRACTS WITH THE BIG CABLE COMPANIES THAT GAVE THE WIRELESS CABLE COMPANIES THE OPPORTUNITY TO CARRY THE SAME POPULAR PROGRAMMING THAT THE BIG CABLE COMPANIES CARRIED NOW THE WIRELESS CABLE COMPANIES ARE SCRAMBLING TO SIGN UP SUBSCRIBERS AND BELIEVERS ARE SCRAMBLING TO BUY UP SHARES DEPENDING UPON HOW BULLISH THEY ARE BUYERS SAY WIRELESS CABLE COMPANIES COULD GET FROM 5 TO 20 OF THE CABLE MARKET SHARE IN THE NEXT FEW YEARS MUCH OF THOSE GAINS WOULD COME ON TOP OF THE CURRENT 60 HOUSEHOLD PENETRATION OF THE OVERALL CABLE INDUSTRY THE MAIN GOAL IS FOR THE WIRELESS CABLE OPERATORS TO USE THEIR CHEAPER PRICES TO ATTRACT FORMER CABLE SUBSCRIBERS AND THOSE WHO HAVE NOT YET SIGNED UP TO ANY SERVICE WE BELIEVE GIVEN THE PRICE DIFFERENTIAL WIRELESS CABLE COMPANIES COULD GET 15 TO 20 OF THE PENETRATION IN ANY MARKET MOVING TOTAL CABLE PENETRATION TO 70 OR 80 SAYS EMANUEL GERARD OF GERARD KLAUER MATTISON & CO WHICH HAS UNDERWRITTEN ALL THREE COMPANIES WIRELESS IS A LOWPRICE ALTERNATIVE THAT IS 25 TO 40 CHEAPER IN SOME PLACES HE SAYS THESE COMPANIES SHOULD START TO PRODUCE POSITIVE EARNINGS PER SHARE IN 1994 TREVOSE PABASED ACS ENTERPRISES JUST POSTED A LOSS FOR ITS SECOND QUARTER OF 22 CENTS A SHARE NARROWED FROM A LOSS OF 67 CENTS A YEAR EARLIER BUT CHICAGOBASED PREFERRED ENTERTAINMENT REPORTED A WIDENING OF ITS FIRSTQUARTER LOSS TO 17 CENTS A SHARE COMPARED WITH A LOSS OF 15 CENTS A SHARE A YEAR EARLIER SOME ANALYSTS FEEL HOWEVER THAT CHEAPER ISN'T NECESSARILY BETTER WIRELESS CABLE OPERATORS AREN'T THE EQUIVALENT OF CURRENT CABLE SYSTEMS THEY SAY I THINK THE PROSPECTS ARE GOOD FOR THE WIRELESS CABLES BUT AS IT STANDS NOW THERE ARE LESS CHANNELS ON THESE SYSTEMS SAYS MR BILLEADEAU BRIDGEPORT CONNBASED PEOPLE'S CHOICE TV HAS CONTROL OF BETWEEN 24 AND 33 CHANNELS IN CITIES SUCH AS BALTIMORE HOUSTON AND ST LOUIS CABLE OPERATORS HAVE ON AVERAGE 40 TO 50 CHANNELS ON THEIR SYSTEMS THERE'S ALSO NO GUARANTEE THAT NEW SUBSCRIBERS WILL CHOOSE THE WIRELESS CABLE TECHNOLOGY INDEED OTHER ALTERNATIVES ARE BEING DEVELOPED ONE IS DIRECT BROADCAST SATELLITE KNOWN AS DBS IN WHICH SATELLITES TRANSMIT A SIGNAL TO SMALL RECEIVERS ON TOP OF INDIVIDUAL HOUSEHOLDS THERE IS ALSO THE POSSIBILITY THAT CELLULAR TELEVISION WILL MAKE A FORMIDABLE APPEARANCE BASICALLY IT'S TOO EARLY TO TELL WHAT COMPETITIVE TECHNOLOGIES ARE GOING TO WORK AND WHAT IS GOING TO BE VIABLE SAYS THOMAS MARSICO A PORTFOLIO MANAGER AT JANUS CAPITAL IN DENVER IT'S GOING TO TAKE LONGER TO ACHIEVE REAL RESULTS THAN PEOPLE REALIZE BUT FOR THE MOMENT CHANNEL NUMBERS AND NEARTERM EARNINGS DON'T REALLY MATTER TO WALL STREET THE MARKET ISN'T CONCERNED WITH VALUATION MR MARSICO SAYS THERE ARE A GROUP OF SPECULATIVE MOMENTUM PLAYERS THAT ARE DRIVING THESE PRICES UP HE SAYS HE DIDN'T BUY INTO THE INITIAL PUBLIC OFFERINGS AND WHILE HE'S INTERESTED IN THE SECTOR AS A POTENTIAL INVESTMENT I'M NOT INTERESTED IN PURCHASING THEM AT THESE PRICES THE OVERTHECOUNTER MARKET ROSE ONLY SLIGHTLY DESPITE GAINS IN TELECOMMUNICATIONS STOCKS THE NASDAQ COMPOSITE INDEX EDGED UP48 OR 007 TO 73096 ADVANCING ISSUES OUTNUMBERED DECLINERS 1506 TO 1329 ON VOLUME OF 2603 MILLION SHARES DOWN FROM THURSDAY'S 2892 MILLION SHARES MCCAW FINISHES HIGHER MCCAW CELLULAR COMMUNICATIONS GAINED 3/4 TO 54 1/4 LIN BROADCASTING JUMPED 2 TO 120 3/4 AND TELECOMMUNICATIONS ROSE 1/8 TO 24 ADOBE SYSTEMS TUMBLED 2 1/8 TO 21 1/2 ALEX BROWN & SONS ANALYST MARY MCCAFFREY DOWNGRADED THE STOCK TO NEUTRAL FROM BUY SHE ALSO CUT HER 1993 ESTIMATE TO 113 A SHARE FROM 123 IN 1992 THE COMPANY EARNED 93 CENTS A SHARE THE DOWNGRADE IS BECAUSE OF REDUCED EXPECTATIONS FOR ROYALTY INCOME GROWTH FROM ADOBE SOFTWARE USED IN PRINTERS SHE SAID OTHER TECHNOLOGY STOCKS WERE MIXED CISCO SYSTEMS SLID 1 5/8 TO 53 1/8 BORLAND INTERNATIONAL INCREASED 1 3/4 TO 19 AND MICROSOFT JUMPED 2 TO 76 1/4 SALEM SPORTSWEAR PLUNGED 3 TO 6 1/4 THE HUDSON NH COMPANY SAID ITS FOURTH QUARTER AND YEAR EARNINGS WILL BE SIGNIFICANTLY BELOW ITS INTERNAL EXPECTATIONS DUE TO DELIVERY AND PRODUCTION PROBLEMS THAT CUT SALES THE DESIGNER OF SPORTS APPAREL SAID IT FORECASTS A LOSS FOR THE FOURTH QUARTER OF AS MUCH AS 15 CENTS A SHARE INCLUDING A PRETAX RESTRUCTURING CHARGE OF 45 MILLION FOR THE FOURTH QUARTER A YEAR EARLIER SALEM EARNED 32 CENTS A SHARE EMANUEL GERARD OF GERARD KLAUER MATTISON & CO WHICH HAS UNDERWRITTEN OFFERINGS OF PEOPLE'S CHOICE TV CORP PREFERRED ENTERTAINMENT INC AND ACS ENTERPRISES INC EXPECTS ACS TO PRODUCE POSITIVE EARNINGS IN 1994 THE OTC FOCUS COLUMN MONDAY INCORRECTLY STATED THAT MR GERARD EXPECTED ALL THREE CONCERNS TO POST PROFITS IN 1994 9308230051 930823 EASTERN GERMANY SHOWS SHARP JUMP IN ORDERS FOR JUNE SPECIAL TO THE WALL STREET JOURNAL BONN HOPE FOR THE EASTERN GERMAN ECONOMY GOT A BOOST FRIDAY WITH NEWS THAT INDUSTRIAL ORDERS SHOWED A SHARP JUMP IN JUNE AND INVESTMENT IS RISING HOWEVER ECONOMISTS WARNED AGAINST READING TOO MUCH INTO THE REPORTS JUNE INDUSTRIAL ORDERS JUMPED 21 FROM MAY AND WERE UP 179 FROM A YEAR EARLIER THE GERMAN ECONOMICS MINISTRY REPORTED THE GAINS WERE PROPELLED BY A 273 SURGE IN DOMESTIC ORDERS FOREIGN ORDERS WERE UNCHANGED SEPARATELY THE MUNICHBASED IFO ECONOMIC RESEARCH INSTITUTE PUBLISHED A STUDY SHOWING THAT INDUSTRIAL INVESTMENT IN EASTERN GERMANY ROSE 30 IN 1992 AND WILL LIKELY RISE AN ADDITIONAL 20 IN 1993 BY COMPARISON INVESTMENT IN WESTERN GERMANY FELL 6 IN 1992 AND SHOULD PLUNGE 14 THIS YEAR AS THE COUNTRY'S RECESSION DEEPENS THE HIGH INVESTMENT FIGURES REFLECT THE CONTINUING PROCESS OF REBUILDING EASTERN GERMANY IT IS LOGICAL THAT WE SEE THESE SORTS OF INVESTMENT FIGURES IN EASTERN GERMANY SAID GERHARD GREBE CHIEF ECONOMIST WITH BANK JULIUS BAER DEUTSCHLAND IN FRANKFURT ECONOMISTS ALSO POINTED OUT THAT THE ORDERS DATA MUST BE JUDGED CAUTIOUSLY THE DATA AREN'T ADJUSTED FOR SEASONAL PRICE OR CALENDAR FACTORS IN ADDITION THEY ARE HISTORICALLY VOLATILE ECONOMISTS SAID THE ECONOMICS MINISTRY NOTED THAT AT LEAST SOME OF THE ORDERS GAIN WAS DUE TO SEASONAL FACTORS IT WARNED AGAINST EXPECTATIONS THAT THE JUNE FIGURES MARKED A TREND OR THAT SUCH GROWTH RATES COULD BE SUSTAINED IN A TWOMONTH COMPARISON EASTERN GERMAN ORDERS FOR MAYJUNE WERE DOWN ABOUT 35 FROM THE MARCHAPRIL LEVEL TWOMONTH COMPARISONS OFTEN IRON OUT VOLATILITY OF COURSE THE NUMBERS ARE A GOOD SIGN FOR EASTERN GERMANY AND WE EXPECT HIGHER GROWTH RATES FOR THIS YEAR SAID THORSTEN NEUFELD AN ECONOMIST WITH DB RESEARCH GMBH AN ARM OF GERMANY'S DEUTSCHE BANK BUT IT IS TOO EARLY TO DRAW THE CONCLUSION THAT EVERYTHING IN EASTERN GERMANY IS ALL RIGHT IT IS A VERY VOLATILE SITUATION WHILE THE REGION'S INDUSTRIAL ORDERS HAVE RISEN STEADILY FROM YEAREARLIER LEVELS SINCE FEBRUARY THE MONTHTOMONTH COMPARISONS HAVE BEEN VOLATILE ORDERS GAINED 61 IN FEBRUARY AND ROCKETED 192 IN MARCH BUT THEN THEY FELL IN APRIL AND MAY BY 83 AND 86 RESPECTIVELY THERE IS AN UPWARD TREND IN ORDERS BUT THERE COULD EASILY BE A MONTH SOON WITH A MINUS OF UP TO 10 MR NEUFELD WARNED THE VULNERABILITY OF EASTERN GERMANY'S INDUSTRY IS ILLUSTRATED IN PART BY ITS OVERWHELMING DEPENDENCE ON WESTERN GERMANY IF WESTERN GERMANY'S SLUMP WORSENS OR FAILS TO REVIVE SOON ORDERS WILL NECESSARILY DECLINE 9308230050 930823 ECONOMY MISSISSIPPI RIVER REOPENS WITH LIMITS TO BARGE TRAFFIC AFTER RECORD FLOOD BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE COAST GUARD REOPENED THE MISSISSIPPI RIVER TO LIMITED BARGE TRAFFIC AFTER NEARLY TWO MONTHS OF RECORD FLOODING MOVEMENT ALONG THE MOST IMPORTANT US COMMERCIAL WATERWAY IS HEAVILY RESTRICTED HOWEVER WHICH MEANS THAT TRANSPORTATION PROBABLY WON'T RETURN TO NORMAL BEFORE THE SHIPPING SEASON CONCLUDES ALONG THE RIVER'S UPPER HALF IN DECEMBER AS A RESULT BARGEDEPENDENT INDUSTRIES SUCH AS AGRICULTURE ELECTRIC UTILITIES AND CHEMICAL MANUFACTURING FACE MORE MONTHS OF SUPPLY DISRUPTIONS THE STRANDING OF THOUSANDS OF BARGES LOADED WITH EVERYTHING FROM CORN TO FUEL HAS FORCED MANY COMPANIES TO USE TRAINS AND TRUCKS INSTEADCOSTING THE AILING BARGE INDUSTRY APPROXIMATELY 200 MILLION IN REVENUE COAST GUARD OFFICIALS YESTERDAY BEGAN PERMITTING BARGES TO MOVE DOWN RIVER ALONG THE RIVER'S UPPER HALF WHICH STRETCHES FROM MINNEAPOLIS SOUTH TO CAIRO ILL AFTER TEST RUNS BY SOME TOWBOATS SHOWED THAT THEIR WAKES DIDN'T ENDANGER THE WEAKENEDLEVEES PROTECTING TOWNS ALONG THE RIVER ALTHOUGH WATER LEVELS ALONG THE RIVER HAVE FALLEN SHARPLY IN RECENT DAYS MANY SECTIONS ARE STILL ABOVE FLOOD STAGE TOWBOATS MOVING SOUTH ALONG THE NATION'S BIGGEST RIVER ARE GENERATING RELATIVELY LITTLE WAKE BECAUSE A FASTERTHANNORMAL CURRENT IS HELPING MOVE THE BARGES THEY PUSH BUT THE FAST CURRENT MEANS THAT TOWBOATS HEADING UP RIVER MAKE AN UNUSUALLY BIG WAKE AS A RESULT THE COAST GUARD IS CONTINUING TO PROHIBIT TOWBOATS FROM TRAVELING AGAINST THE CURRENT BETWEEN ST LOUIS AND CAIRO ILL WHICH IS WHERE NAVIGATION RETURNS TO NORMAL BECAUSE THE OHIO RIVER JOINS THE MISSISSIPPI TO FORM A MUCH BIGGER WATERWAY THE RESTRICTION MEANS THAT THE NORTHBOUND BARGES WAITING ALONG THE LOWER HALF OF THE MISSISSIPPI COULD BE IDLE FOR ADDITIONAL DAYS OR EVEN WEEKS DESPITE THE RECEDING WATERS TRAFFIC ALONG THE RIVER WILL BE DIFFICULT FOR SEVERAL MONTHS BECAUSE THE FLOODING DESTROYED MANY NAVIGATION AIDS SUCH AS BUOYS AND CHANGED THE CHANNEL OF THE RIVER IN MANY AREAS AS A RESULT THE COAST GUARD IS PROHIBITING BARGES FROM CARRYING LIQUID CARGO SUCH AS PETROCHEMICALS AND LIMITING THE NUMBER OF BARGES A TOWBOAT CAN HANDLE AT A TIME THE LIGHTLY TRAVELED MISSOURI RIVER WAS OPENED TO UNRESTRICTED BARGE TRAFFIC YESTERDAY THE COAST GUARD IS CONTINUING TO BLOCK TRAFFIC ON A PORTION OF THE ILLINOIS RIVER THE WATERWAY THAT LINKS CHICAGO INDUSTRIES TO THE MISSISSIPPI RIVER BARGE INDUSTRY OFFICIALS EXPECT SOME SMALLER COMPANIES TO FOLD IN THE WAKE OF TWOMONTH CLOSURE WHICH ELIMINATED ABOUT ONEFOURTH OF THEIR NORMAL SHIPPING SEASON SOME BARGE COMPANIES TEMPORARILY LAID OFF THOUSANDS OF EMPLOYEES AND A FEW RESTRUCTURED THEIR OPERATIONS TO PERMANENTLY REDUCE THEIR WORK FORCE THE US DEPARTMENT OF TRANSPORTATION IS ESTIMATING THAT 108 MILLION IN PERSONAL INCOME WAS LOST EACH MONTH THE UPPER HALF OF THE MISSISSIPPI RIVER WAS CLOSED THE US BARGE INDUSTRY WHICH MOVES ABOUT 700 MILLION TONS OF CARGO ANNUALLY HAS BEEN CONSOLIDATING FOR SEVERAL YEARS THE RATES IT CHARGES ARE NEARLY AS LOW AS THEY WERE TWO DECADES AGO IN PART BECAUSE OF THE SLUMP IN US EXPORTS OF GRAIN ONE OF THE BIGGEST COMMODITIES TO MOVE DOWN THE MISSISSIPPI RIVER INDEED THE DISRUPTION PROBABLY DIDN'T COST US GRAIN EXPORTERS MUCH BUSINESS BECAUSE EXPORTS ARE SO WEAK BUT THE BOTTLENECK HAS ALLOWED GRAIN SUPPLIES IN EXPORT TERMINALS AROUND NEW ORLEANS TO DWINDLE GOVERNMENT AND GRAIN INDUSTRY OFFICIALS WORRY THAT TRAFFIC RESTRICTIONS MIGHT PREVENT THE BARGE INDUSTRY FROM FULLY REPLENISHING THE TERMINALS BEFORE THE SHIPPING SEASON ENDS THIS YEAR EVEN THE PARTIAL OPENING OF THE RIVER HOWEVER IS EASING PRESSURE ON MANY COMPANIES UNION ELECTRIC CO IN ST LOUIS FOR EXAMPLE WAS RUNNING LOW ON COAL FOR ITS MERAMEC GENERATING PLANT WHICH DEPENDS ON BARGE SHIPMENTS THE PLANT WAS FORCED TO SWITCH TO NATURAL GAS AND REDUCE OUTPUT WHICH WAS COMPENSATED FOR BY OTHER GENERATING STATIONS TO HELP EASE THE DISRUPTIONS CAUSED BY THE FLOODING SEVERAL INDUSTRIES HAVE ASKED THE FEDERAL GOVERNMENT TO ATTEMPT TO KEEP THE UPPER MISSISSIPPI RIVER OPEN LONGER FOR BARGE TRAFFIC THIS YEAR 9308230049 930823 NOTABLE & QUOTABLE JONATHAN SCHORR A PARTICIPANT IN THE TEACH FOR AMERICA PROGRAM WRITES IN THE JUNE WASHINGTON MONTHLY CLEARLY TRADITIONAL TEACHER EDUCATION DOES NOT HOLD THE ANSWERS REGARDLESS OF TIME CONSTRAINTS THE COURSES I TOOK AT THREE DIFFERENT COLLEGES OVER THE TWO YEARS I PURSUED MY CALIFORNIA TEACHING CREDENTIAL PROVED THAT TO ME I BEGAN AT CAL STATE UNIVERSITY ALTHOUGH I HAD EARNED DISTINCTION IN SOCIOLOGY AT YALE AND HAD TAKEN SEVERAL COURSES IN HISTORY AND PSYCHOLOGY CAL STATE DECLARED THAT I WOULD NEED 14 MORE COURSES BEFORE I COULD TEACH SOCIAL STUDIES I WAS PRONOUNCED SIMILARLY UNQUALIFIED IN ENGLISH IN WHICH I HAD DONE EXTENSIVE COURSEWORK AS WELL WHAT PASSED FOR A LESSON IN THESE EDUCATION CLASSES WAS OFTEN NOTHING MORE THAN PASSING OUT A READING AND THEN RESHUFFLING COOPERATIVE GROUPS TO DISCUSS IT WHILE THE INSTRUCTOR SAT AT A DESK OR WE MIGHT WATCH A SAMPLE LESSON PREPARED BY A STUDENT WHO HAD NEVER TAUGHT A CLASS 9308230048 930823 PEPPERAND SALT I'VE GOT OTHER PLANS 9308230047 930823 GLOBAL VIEW CONGRESS IS SCUPPERING MISSILE DEFENSE BY GEORGE MELLOAN BRUSSELS A NEW YORK TIMES STORY LAST WEEK CLAIMED THAT CASPAR WEINBERGER'S PENTAGON FAKED A 1984 TEST IN WHICH A DEFENSIVE MISSILE INTERCEPTED AN INCOMING MISSILE AND BLEW IT UP THE TEST WAS A FRAUD DECEIVING CONGRESS AS WELL AS THE SOVIET UNION SAID THE TIMES TALE BECAUSE THE INCOMING MISSILE WAS EQUIPPED WITH A RADIO BEACON THAT LED THE INTERCEPTOR TO IT TRUSTING THEIR REPORTER TIMES EDITORS EMITTED A GRAVELVOICED EDITORIAL DENOUNCING THE CRIME OF MISLEADING CONGRESS THEY INTONED THAT THE WHOLE HISTORY OF THE STRATEGIC DEFENSE INITIATIVE IS THROWN INTO QUESTION WASHINGTON POST COLUMNIST STEPHEN S ROSENFELD WEIGHED IN ALBEIT LESS CONFIDENTLY WITH IF THE ALLEGATION ABOUT DECEIVING CONGRESS IS TRUE WE ARE IN THE PRESENCE OF A LARGE SCANDAL ASIDE FROM WHETHER IT IS A CRIME ONLY WHEN NONMEMBERS DECEIVE CONGRESS THERE IS THE QUESTION OF WHETHER THE TIMES STORY WAS IN FACT TRUE ITS AUTHOR TIM WEINER WASN'T MUCH HELP BECAUSE HE DIDN'T NAME HIS SOURCES SAYING ONLY THAT THEY WERE FORMER REAGAN ADMINISTRATION OFFICIALS MR WEINBERGER WHEN FINALLY CONSULTED FOR A SECONDDAY STORY SAID THE ALLEGATION WAS FALSE SO DID FORMER MAJOR GENERAL EUGENE FOX WHO WAS IN CHARGE OF THE TEST FRANK GAFFNEY JR A STRATEGIC DEFENSE ADVISER TO MR WEINBERGER AT THE TIME SAYS THE RADIO BEACONS ON BOTH THE INTERCEPTING AND INTERCEPTED MISSILES WERE FOR RANGE SAFETY AND TEST MONITORING BUT THE INTERCEPTOR WAS OPTICALLY NOT RADIO GUIDED THERE IS A MORE INTERESTING QUESTION HOWEVER WHY DID THIS STORY FLOAT TO THE SURFACE NINE YEARS AFTER THE FACT ANYONE WISE TO THE WAYS OF WASHINGTON MIGHT SUSPECT YET ANOTHER SCANDAL DESIGNED TO INFLUENCE AN IMPORTANT DEBATE IT SO HAPPENS THAT SOMETHING IMPORTANT INDEED IS AFOOT THE CLINTON ADMINISTRATION AND CONGRESS ARE GUTTING THE STRATEGIC DEFENSE INITIATIVE THIS IS AN EXCELLENT TIME FOR THE KNIFEWIELDERS TO RAISE DOUBTS ABOUT THE SDI'S VALIDITY WHAT WOULD HAVE BEEN THE MOST COMPREHENSIVE AND COSTEFFECTIVE COMPONENT OF SDI A SPACEBASED FLEET OF MINIATURE INTERCEPTORS CALLED BRILLIANT EYES HAS BEEN EFFECTIVELY DEFUNDED IN THE FY1994 BUDGET CLINTON DEFENSE SECRETARY LES ASPIN HAS BEEN QUOTED AS BRAGGING THAT HE WAS TAKING THE STARS OUT OF STAR WARS BUT HIS OWN IDEA FOR A MORE LIMITED GROUNDBASED THEATER DEFENSE THAT WOULD AT BEST PROTECT ONLY A PART OF THE COUNTRY MAY TAKE A FURTHER HIT TOO WHEN CONGRESS RESUMES WORK ON THE DEFENSE AUTHORIZATION BILL AFTER THE AUGUST RECESS ARKANSAS SENATOR DAVID PRYOR WHO FIGURED PROMINENTLY IN THE WEINER STORY WILL WANT FURTHER WHACKS AT THE ALREADY SHRIVELED SDI BUDGET SO WILL JIM SASSER OF TENNESSEE AND DALE BUMPERS OF ARKANSAS THEN THERE'S VICE PRESIDENT ALBERT GORE JR HE LED THE UNSUCCESSFUL FIGHT AGAINST THE MISSILE DEFENSE ACT OF 1991 WHICH CALLED FOR DEPLOYMENT OF A LIMITED US DEFENSE IN RESPONSE TO PUBLIC CONCERNS ABOUT IRAQ'S SCUDS BUT THAT WAS 1991 TODAY THE US REMAINS DEFENSELESS AGAINST MISSILE ATTACK AND IT WILL BE FOR SOME TIME ALSO NEXT MONTH SECRETARY ASPIN MAY BEGIN RELEASING HIS BOTTOMUP STUDY OF US DEFENSE NEEDS SO THERE MAY BE A MODICUM OF DEBATE ON US DEFENSE POLICY WHETHER A TEST WAS FAKED IN 1984 IS IN ANY LOGICAL SENSE IRRELEVANT IN NINE YEARS THE US HAS DEVELOPED IMPRESSIVE TECHNOLOGIES INCLUDING BRILLIANT EYES FOR DEFENSE AGAINST MISSILE ATTACK BUT THE REAL DEBATE ALWAYS HAS BEEN POLITICAL THAT'S PARTLY BECAUSE AMERICAN LIBERALS LUST TO DISCREDIT ANYTHING AND EVERYTHING THAT HAPPENED IN THE REAGAN ADMINISTRATION SDI WAS FOUGHT BITTERLY FROM THE OUTSET BY THE AMERICAN LEFT THEY ARGUED THAT IT WOULD DESTABILIZE THE BALANCE OF TERROR BETWEEN THE US AND USSR RECOGNITION THAT THEY COULD NOT MATCH US DEFENSIVE TECHNOLOGY MAY IN FACT HAVE SAPPED THE CONFIDENCE OF SOVIET GENERALS BUT IF THAT CONTRIBUTED TO THE COLLAPSE OF THE SOVIET UNION AS IT MOST LIKELY DID ALONG WITH A GENERALIZED CHAOS IT HARDLY SEEMS SOMETHING TO LAMENT UNLESS YOU ARE SOMEONE WHO DOESN'T WANT TO ADMIT BEING WRONG INDEED THAT RELUCTANCE IS SUCH THAT WHEN THE CLINTON ADMINISTRATION CAME TO POWER THE ANTISDI FORCES PUSHED FOR AND HAVE BEEN GRANTED A RETURN TO A STRICT INTERPRETATION OF THE 1972 ANTIBALLISTIC MISSILE ABM TREATY WITH THE USSR CLAIMING A TREATY PROHIBITION IS THE JUSTIFICATION FOR STALLING A BROADBASED US MISSILE DEFENSE FORGET THAT THE SOVIETS THEMSELVES ADMITTED LARGESCALE ABM VIOLATIONS FORGET THAT THE SOVIET UNION NO LONGER EXISTS AND THAT TODAY'S THREATS ARE FAR MORE DIVERSIFIED COMING POTENTIALLY FROM SUCH ROGUE NATIONS AS NORTH KOREA AND IRAN FORGET THAT MR YELTSIN HAS HIMSELF HINTED THAT HE MIGHT LIKE TO RENEGOTIATE THE TREATY NO DOUBT BECAUSE OF HIS OWN CONCERNS ABOUT ROGUE NATIONS BUT ON TO THE PRACTICAL REASONS FOR THIS A PRINCIPAL ONE IS THAT THE CLINTON ADMINISTRATION AND MEMBERS OF CONGRESS CAN THINK OF A LOT OF OTHER WAYS THEY WOULD LIKE TO SPEND THE MONEY NOT ONLY THE SDI BUDGET BUT THE PENTAGON BUDGET IN GENERAL IS BEING EVISCERATED CLINTONITES WANT TO USE SOME OF THE MONEY TO BUY VOTES WITH SUBSIDIES TO INDUSTRY THEIR SOCALLED INDUSTRIAL POLICY THE SDI BUDGET IS BEING TAPPED DIRECTLY TO FINANCE PEACEKEEPING MISSIONS IN PARTICULAR THE ILLSTARRED EFFORT IN SOMALIA INDEED THE HUNGER TO RAID THE DEFENSE BUDGET FOR OTHER PROJECTS HAS SELDOM BEEN STRONGER IN WASHINGTON THE ASSUMPTION OF COURSE IS THAT THE COLD WAR IS OVER AND THE DEFENSE BUDGET IS FAIR GAME IT IS SOMETIMES FORGOTTEN THAT RUSSIA STILL UNSTABLE POLITICALLY RETAINS SOME 30000 NUCLEAR WARHEADS IT IS ARGUED THAT SMALLER NATIONS WOULDN'T DARE MAKE A MISSILE ATTACK ON THE US BECAUSE OF ITS ENORMOUS RETALIATORY CAPABILITY BUT IF SAY SOME FUTURE AYATOLLAH IN KAZAKHSTAN DECIDED TO FIRE OFF A FEW ICBMS AT WASHINGTON AND NEW YORK WHAT EXACTLY WOULD THE US RETALIATE AGAINST ALMA ATA A SPACEBASED DETECTION AND INTERCEPTION SYSTEM CAPABLE OF KILLING MISSILES SHORTLY AFTER LAUNCH WOULD BE THE BEST DISCOURAGEMENT POSSIBLE AGAINST NUCLEAR MISSILE PROLIFERATION AND WOULD REDUCE THE POTENTIAL FOR THE USE OF SUCH WEAPONS NOW OF COURSE THERE IS NO WAY OF KNOWING WHETHER THIS POLITICAL BATTLE WHICH IS OF SOME IMPORTANCE TO THE FUTURE SECURITY OF THE US STIMULATED THE NEW YORK TIMES TO RESUME ITS LONGRUNNING ATTACK ON SDI WASHINGTON REPORTERS ALWAYS ARE LOOKING FOR A SCOOP AND MAYBE MR WEINER JUST HAPPENED UPON SOME DEEP THROATS WHO CLAIMED TO HAVE INSIDE DOPE ABOUT THE 1984 TEST BUT IF AN UNSOURCED STORY IS FLOATED IN THE TIMES IT SURELY IS AT LEAST EQUALLY ETHICAL TO QUESTION THE MOTIVES OF THOSE WHO FLOATED IT 9308230046 930823 TECHNOLOGY & HEALTH SILICON GRAPHICS NINTENDO UNIT PLAN LINKUP BY MICHAEL WOFSEY STAFF REPORTER OF THE WALL STREET JOURNAL SILICON GRAPHICS INC HAS GAINED A POWERFUL ALLY IN ITS EFFORT TO SPREAD BEYOND ITS TRADITIONAL HIGHPERFORMANCE COMPUTER MARKETS AND INTO HIGHVOLUME CONSUMERELECTRONICS MARKETS THE MOUNTAIN VIEW CALIF COMPUTER MAKER AND THE US UNIT OF JAPAN'S NINTENDO CO ARE EXPECTED TO ANNOUNCE TODAY THAT NINTENDO WILL USE CHIPS DESIGNED BY SILICON GRAPHICS IN CERTAIN FUTURE VIDEOGAME MACHINES THE COMPANIES HAVE BEEN QUIETLY WORKING TOGETHER FOR SEVERAL MONTHS ON A PROJECT TO BUILD SILICON GRAPHICS' MICROPROCESSOR AND COMPUTERGRAPHICS TECHNOLOGY INTO A HOME VIDEOGAME SYSTEM MORE POWERFUL THAN SYSTEMS CURRENTLY AVAILABLE ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS THE COMPANIES HAVE DEVELOPED SOFTWARE THAT ALLOWS GAME DEVELOPERS TO USE EXISTING SILICON GRAPHICS PROGRAMS TO MAKE THE TASK OF WRITING SOFTWARE FASTER AND EASIER THE NEW GAME UNIT IS EXPECTED TO BE AVAILABLE LATE NEXT YEAR SAID THE PEOPLE FAMILIAR WITH THE PLANS SILICON GRAPHICS HAS A GROWING AND PROFITABLE BUSINESS SELLING HIGHSPEED COMPUTER WORKSTATIONS AND IS KNOWN FOR ITS STRENGTH IN THREEDIMENSIONAL COLOR GRAPHICS SOFTWARE THE COMPANY HAS RECENTLY LAUNCHED A STRATEGY OF PUSHING INEXPENSIVE VERSIONS OF ITS CHIPS WHICH IT DESIGNS BUT OTHER COMPANIES MAKE INTO CONSUMER MARKETS IN JUNE FOR INSTANCE SILICON GRAPHIC SAID IT WOULD WORK WITH TIME WARNER INC TO USE ITS CHIPS AND SOFTWARE IN CABLECONVERTER BOXES FOR TELEVISION SETS THE NINTENDO DEAL COULD PLACE MILLIONS OF SILICON GRAPHICS' CHIPS IN THE HOME MARKET IF NINTENDO MANAGES TO REPEAT ITS SUCCESS DURING THE 1980S IN INFILTRATING US HOMES WITH ITS GAMES ONE IN EVERY THREE US HOUSEHOLDS HAS A NINTENDO GAME UNIT ACCORDING TO THE COMPANY WE KNOW COMPUTERS AND 3D GRAPHICS AND NINTENDO KNOWS GAMES AND THEY HAVE GREAT MARKETING CHANNELS SAID WEI YEN SENIOR VICE PRESIDENT AT SILICON GRAPHICS HE ADDED THAT THE DEAL DOESN'T PRECLUDE OTHER GAME COMPANIES FROM USING THE SILICON GRAPHICS CHIPS FOR NINTENDO TEAMING UP WITH SILICON GRAPHICS PROVIDES GRAPHICSSOFTWARE EXPERTISE AND A CHIP THEY WILL NEED TO FEND OFF CHALLENGERS' INCREASINGLY POWERFUL MODELS OVER THE NEXT FEW YEARS WHILE IT HAS AN EDGE IN MARKET SHARE OF THE HOME VIDEOGAME MARKET NINTENDO HAS STEADILY LOST SHARE TO RIVAL SEGA ENTERPRISES LTD TODAY'S EXPECTED ANNOUNCEMENT WOULD COME AS 3DO CO REDWOOD CITY CALIF AND ATARI CORP SUNNYVALE CALIF PUT THE FINISHING TOUCHES ON THEIR HOME ENTERTAINMENT UNITS TO BE RELEASED LATER THIS YEAR BOTH COMPANIES HAVE INVESTED MILLIONS IN DEVELOPING UNITS THAT OFFER MUCH GREATER CAPABILITIES THAN SYSTEMS PRESENTLY SOLD BY NINTENDO AND SEGA 9308230045 930823 FOREIGN EXCHANGE US STANCE ON DOLLAR AGAINST THE YEN LIKELY TO FACE MARKET TEST THIS WEEK BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK CURRENCY TRADERS WILL DEMAND CONFIRMATION THIS WEEK THAT THE US GOVERNMENT NO LONGER FAVORS A WEAKER DOLLAR AS A MEANS OF CUTTING JAPAN'S HUGE TRADE SURPLUS IF THE FEDERAL RESERVE BANK OF NEW YORK INTERVENES AGGRESSIVELY AGAIN THE DOLLAR SHOULD RALLY AGAINST THE YEN BUT IF TRADERS DECIDE THAT THE FEDERAL RESERVE SOUGHT ONLY TO PREVENT A DOLLAR FREEFALL RATHER THAN TO SIGNAL A POLICY CHANGE WHEN IT INTERVENED UNEXPECTEDLY LAST THURSDAY THE DOLLAR'S GAINS LAST WEEK COULD EVAPORATE YOU'LL SEE THE MARKET TEST THE CENTRAL BANKS AGAIN SAYS MICHAEL FAUST WHO MANAGES CURRENCY EXPOSURE FOR BAILARD BIEHL & KAISER A SAN MATEO CALIF INVESTMENTMANAGEMENT FIRM IT WOULDN'T BE THE FIRST TIME IN THIS YEAR'S YEN RALLY THAT THE DOLLAR APPEARED TO CHANGE COURSE ONLY TO RESUME ITS DECLINE IN JUNE THE DOLLAR RALLIED BY FOUR YEN AND THEN SHED THAT ENTIRE GAIN IN THE SPACE OF A WEEK DEALERS DROVE DOWN THE DOLLAR BY MORE THAN ONE YEN ON FRIDAY AS THEY WATCHED FOR ANOTHER ROUND OF INTERVENTION IN LATE TRADING IN NEW YORK THE DOLLAR STOOD AT 10435 YEN DOWN FROM 10590 YEN LATE THURSDAY THE DOLLAR ALSO FELL TO 16755 MARKS FROM 16875 MARKS ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10369 YEN AND AT 16761 MARKS IF THE DOLLAR HOLDS ITS GROUND THIS TIME INVESTORS PROBABLY WILL BEGIN TO MOVE CAPITAL OUT OF JAPAN ANALYSTS SAY SUCH CAPITAL FLOWS COULD FURTHER WEAKEN THE YEN US INVESTORS WHOSE RETURNS ON JAPANESE HOLDINGS INCREASE WITH EVERY DIP IN THE DOLLAR MIGHT BECOME LESS ENTHUSIASTIC ABOUT INVESTING IN JAPAN A LOT OF FIRMS LIKE OURS WERE GOING INTO JAPAN EXPECTING CAPITAL GAINS ON JAPANESE BONDS PLUS SOLID CURRENCY RETURNS SAYS MR FAUST FED INTERVENTION WILL MAKE PEOPLE MORE UNCERTAIN ABOUT THAT THE PROSPECT OF FISCAL STIMULUS IN JAPAN ALSO COULD HURT JAPANESE BOND PRICES MR FAUST SAYS JAPANESE OFFICIALS LAST WEEK SAID A NEW ECONOMIC PACKAGE WAS PLANNED FOR SEPTEMBER MANY CURRENCY PLAYERS CONCLUDED THAT THURSDAY'S INTERVENTION REFLECTED SATISFACTION ON THE PART OF THE CLINTON ADMINISTRATION THAT THE PLAN WOULD BOOST JAPANESE IMPORTS OTHER ANALYSTS DOUBT THAT ADDITIONAL SUPPLY WILL WEIGH ON JAPANESE BOND PRICES IF PEOPLE HAVE CONFIDENCE THAT INFLATION POLICIES ARE REASONABLY PRUDENT THEY'LL FINANCE THE BONDS SAYS ROBERT DOW DIRECTOR OF FIXEDINCOME MANAGEMENT AT LORD ABBETT & CO BUT MR DOW ALSO BELIEVES THAT THE YEN WILL WEAKEN FALLING MONEYMARKET RATES WILL HURT THE CURRENCY HE SAYS CURRENCY TRADERS HAVE LONG SINCE PRICED IN ANOTHER CUT IN JAPAN'S OFFICIAL DISCOUNT RATE BUT RATES ARE LIKELY TO KEEP FALLING SAYS MR DOW SHORTTERM RATES ARE SUPPOSED TO REFLECT INFLATION AND RIGHT NOW JAPAN HAS DEFLATION HE SAYS THEY SHOULD BRING DOWN INTEREST RATES AND PROBABLY WILL THAT COULD BE ONE THING THAT TRIGGERS NEARTERM YEN WEAKNESS FOR THEIR PART JAPANESE INVESTORS MAY FIND IT MORE APPEALING TO INVEST ABROAD IF THEY'RE NOT SUBJECT TO CURRENCY LOSSES FROM A RISING YEN THE IMPACT IS LIKELY TO BE STRONGEST IN CANADA AND AUSTRALIA ANALYSTS SAY WHERE JAPANESE INVESTORS HAVE SIGNIFICANT HOLDINGS BUT ANY SHIFT TO US TREASURYS WOULD BE MINIMAL THEY SAY YOU WOULD GET USDOLLAR BOND BUYING BECAUSE OF THE CURRENCY AFTER YOU ALREADY HAVE A GOOD CURRENCY MOVE SAYS MR DOW PEOPLE ARE TREND FOLLOWERS 9308230044 930823 CITICORP'S DINERS CLUB LOSES COURT DECISION IN CARTE BLANCHE CASE NEW YORK DINERS CLUB INTERNATIONAL INC A UNIT OF CITICORP WAS ORDERED BY A FEDERAL APPEALS COURT TO PAY 9 MILLION PLUS INTEREST TO A CARTE BLANCHE FRANCHISE IN SINGAPORE FOR BREACH OF AGREEMENT THE FRANCHISE WON AN ARBITRATION AWARD AGAINST CARTE BLANCHE INTERNATIONAL IN 1988 BUT WAS UNABLE TO COLLECT FROM THE COMPANY WHICH CEASED OPERATING IN 1983 IT THEN SOUGHT PAYMENT FROM DINERS CLUB A LOWER COURT HAD RULED THAT THE FRANCHISE COULDN'T SEEK THE PAYMENT FROM DINERS CLUB BUT THE SECOND US CIRCUIT COURT OF APPEALS REVERSED THE TRIAL JUDGE IN ORDERING DINERS CLUB TO PAY THE APPEALS COURT SAID THAT IN THE DISPUTE WITH THE SINGAPORE FRANCHISE CARTE BLANCHE INTERNATIONAL HADN'T ACTED AS A DISTINCT SEPARATE SUBSIDIARY OF DINERS CLUB THE DISPUTE AROSE AFTER CITICORP ACQUIRED DINERS CLUB IN 1981 AND ATTEMPTED TO TERMINATE ITS CARTE BLANCHE INTERNATIONAL'S WORLDWIDE FRANCHISES TO CONCENTRATE ON ITS DINERS CLUB BUSINESS THE SINGAPORE FRANCHISE REFUSED TO BE BOUGHT OUT AND ACCUSED CARTE BLANCHE INTERNATIONAL OF REDUCING ESSENTIAL SERVICES SHELDON H ELSEN A NEW YORK ATTORNEY WHO REPRESENTED THE SINGAPORE FRANCHISE SAID THAT INTEREST ON THE AWARD NOW TOTALS ABOUT 5 MILLION MARYANN BERGER A NEW YORK ATTORNEY FOR DINERS CLUB DECLINED TO COMMENT ON THE RULING 9308230041 930823 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY NO TIME TO DISARM BY ROBERT M GATES TWO YEARS AGO IN MOSCOW A NEW ERA IN WORLD HISTORY BEGAN AS WE LOOK ABOUT WE SEE A WORLD ALREADY TRANSFORMED THE DANGER OF A MAJOR WAR IN EUROPE OR GLOBAL THERMONUCLEAR WAR HAS DIMINISHED NEARLY TO THE VANISHING POINT WE SEE A WORLD WHERE AS NEVER BEFORE PEOPLE ARE DEMANDING PEACE DEMOCRACY AND AN ECONOMIC SYSTEM THAT WORKS IN EUROPE THE REPUBLICS OF THE FORMER SOVIET UNION THE MIDDLE EAST LATIN AMERICA ASIA AND AFRICA REVOLUTIONARY CHANGE IS TAKING PLACE CHANGE THAT FOR THE MOST PART IS RICH IN OPPORTUNITY FOR BETTER LIVES FOR PEOPLES LONG OPPRESSED YET THE OPPORTUNITY IS FRAGILE AND PERHAPS TRANSITORY THE EVENTS OF THE PAST TWO YEARS HAVE LED TO A FAR MORE UNSTABLE TURBULENT UNPREDICTABLE AND VIOLENT WORLD OUR HOPES FOR A NEW WORLD ORDER HAVE GIVEN WAY TO THE REALITY OF AN ENDURING NEW WORLD DISORDER A DISORDER ROOTED IN VERY FUNDAMENTAL PHENOMENA THE FIRST OF THESE IS THE COLLAPSE OF A TOTALITARIAN IMPERIAL SYSTEM COVERING MORE THAN ONESIXTH OF THE GLOBAL LANDMASS THERE IS NO PRECEDENT IN HISTORY FOR AN EMPIRE AS VAST AS THAT OF RUSSIA OR THE SOVIET UNION IMPLODING SO SUDDENLY THE DEMISE OF FAR SMALLER FAR YOUNGER EMPIRES PREVIOUSLY HAS SHATTERED THE PEACE DISTURBED THE SOCIAL ORDER AND REARRANGED THE INTERNATIONAL LANDSCAPE SO FUNDAMENTALLY AS TO BE GRASPED ONLY BY HISTORIANS AT DECADES' REMOVE RUSSIA'S FRAGILE NEW DEMOCRATIC GOVERNMENT YET ONE WITH NEARLY 30000 NUCLEAR WEAPONS CONFRONTS THREE INTERTWINED CRISES POLITICAL ECONOMIC AND ETHNIC ANY ONE OF THE THREE WOULD SHAKE A DEEPLY ROOTED DEMOCRACY THERE IS ONLY ONE FORECAST ABOUT RUSSIA TODAY THAT CAN BE MADE CONFIDENTLY THE PROCESS OF POLITICAL AND ECONOMIC REFORM EVEN IF WE ASSUME IT WORKS WILL TAKE DECADES AND IT WILL NOT BE PRETTY WE IN TURN MUST KEEP OUR PERSPECTIVE AND PREPARE FOR THE LONG HAUL BE STEADY HELP WHERE WE CAN AND WHERE HELP CAN BE USEFUL BUT ALWAYS BEARING IN MIND THAT THE OUTCOME OF EVENTS IN RUSSIA WILL BE DETERMINED IN RUSSIA NOT IN WASHINGTON A SECOND CAUSE OF THE NEW WORLD DISORDER IS THE EMERGENCE OR RESURFACING OF ANCIENT CONFLICTS SUPPRESSED FOR DECADES BY THE GLOBAL SUPERPOWER CONFRONTATION NATIONALIST AND ETHNIC CONFLICTS OF A LONG AGO WORLD HAVE SURVIVED THE RAVAGES OF 80 YEARS OF WAR AND REVOLUTION TO CONFRONT US AGAIN OFTEN IN NEW AND MORE VIRULENT FORMS AT THE SAME TIME TRIBAL AND CLAN CONFLICTS HAVE EMERGED IN THIRD WORLD COUNTRIES TO DESTABILIZE GOVERNMENTS THREATEN POSTCOLONIAL NATIONAL UNITY AND BRING ENORMOUS HARDSHIP THE BITTERNESS AND HORROR OF SUCH CONFLICTS ARE MOST EVIDENT IN THE DAILY TELEVISION PICTURES FROM THE FORMER YUGOSLAVIA ESPECIALLY BOSNIA TENS OF THOUSANDS KILLED IN COMBAT WELL OVER A HUNDRED THOUSAND COMBATRELATED DEATHS MILLIONS HOMELESS THE SAVAGERY OF ETHNIC CLEANSING THIS IS NOT THE FACE OF EUROPE THAT WE EXPECTED TO SEE AFTER THE DEATH OF COMMUNISM BUT IT IS A FACE OF ENDURING HATRED WITH WHICH WE WILL REMAIN ALL TOO FAMILIAR AS THESE PASSIONS DRIVE GOVERNMENTS AND MOVEMENTS ALL OVER THE WORLD THE THIRD SOURCE OF NEW WORLD DISORDER IS THE ACCELERATING SPREAD OF WEAPONS OF MASS DESTRUCTION AND THE SALE OF CONVENTIONAL OR SUPERCONVENTIONAL WEAPONS TO THIRD WORLD COUNTRIES UP TO TWO DOZEN COUNTRIES HAVE CHEMICAL WEAPONS PROGRAMS AND 14 NOW HAVE BALLISTIC MISSILES THE COUNTRIES OF GREATEST CONCERN BECAUSE OF THEIR POLITICS AND BEHAVIOR ARE NORTH KOREA IRAN AND IRAQ THE FOURTH CAUSE OF THE NEW WORLD DISORDER IS THE BANKRUPTCY OF STATIST IDEOLOGIES AND ECONOMIES AND THE AGING OF LONGLASTING PERSONAL DESPOTISMS THAT PURSUED SUCH POLICIES IN CHINA NORTH KOREA ZAIRE AND MORE THE FAILURE OF SOCIALISM STATISM AND/OR THE ABUSES OF PERSONAL DESPOTISMS ARE SETTING THE STAGE FOR RADICAL CHANGE IN THE FUTURE AT BEST IT WILL BE TURBULENT AT WORST IT WILL BE VIOLENT AND DESTABILIZING FIFTH NATURAL DISASTERS DROUGHT AND THE RESULTING FAMINE IN AFRICA EARTHQUAKES AND VOLCANIC ERUPTIONS AND EVEN THE AIDS EPIDEMIC HAVE PLACED BURDENS ON A NUMBER OF THIRD WORLD GOVERNMENTS THAT THEY SIMPLY ARE INCAPABLE OF BEARING SIXTH THE NEW WORLD DISORDER DERIVES FROM RELIGIOUS RADICALISM THAT THREATENS TO DESTABILIZE A NUMBER OF SECULAR GOVERNMENTS THIS IS TRUE OF SEVERAL IN THE ISLAMIC WORLD INCLUDING ALGERIA TUNISIA AND EGYPT AT THE SAME TIME THE GOVERNMENT OF INDIA IS BESET BY THE CLASH OF HINDU FUNDAMENTALISM AND ISLAMIC FUNDAMENTALISTS THIS RADICAL FUNDAMENTALIST PHENOMENON GROUNDED IN ECONOMIC HARDSHIP AND ALIENATION FROM MODERN CULTURAL TRENDS ESPECIALLY AS SUCH TRENDS CHALLENGE OR UNDERMINE TRADITIONAL AND RELIGIOUS VALUES IS A DEVELOPMENT OF GRAVE CONCERN FINALLY AS ETHNIC AND NATIONALIST CONFLICTS WORSEN AND EXTREMIST RELIGIOUS FUNDAMENTALISM GROWS THERE WILL BE A STEADY INCREASE IN THE RESORT TO TERRORISM AS ELEMENTS OF EACH SEEK TO DRAW ATTENTION TO THEIR CAUSE OR SEEK REVENGE FOR REAL OR PERCEIVED DEFEATS ETHNIC AND RELIGIOUS HATRED RECOGNIZES NO INTERNATIONAL BOUNDARIES SOME SAY AMERICANS SHOULD AVERT OUR GAZE FROM ALL OF THESE PROBLEMS AND LOOK ONLY TO OUR DOMESTIC CONCERNS ONE CAN SYMPATHIZE WITH THE SENTIMENT BUT WE MUST REMEMBER THAT REPEATEDLY IN THIS CENTURY AMERICANS AVERTED THEIR EYES IN THE BELIEF THAT EVENTS IN REMOTE PLACES NEED NOT ENGAGE THIS COUNTRY HOW COULD THE ASSASSINATION OF SOME HAPSBURG ARCHDUKE IN UNKNOWN BOSNIAHERZEGOVINA TOUCH US OR THE OCCUPATION OF A LITTLE PATCH OF GROUND CALLED SUDETENLAND OR A FRENCH DEFEAT AT A PLACE CALLED DIEN BIEN PHU OR THE RETURN OF AN OBSCURE CLERIC TO TEHRAN EVEN IF WE COULD IGNORE SUCH POLITICAL REALITIES WE CANNOT IN 1993 IGNORE ECONOMIC REALITIES AND THOSE REALITIES MEAN THAT TURNING INWARD IS SIMPLY NOT AN OPTION FOREIGN TRADE IS CRITICAL TO OUR DOMESTIC ECONOMIC HEALTH SINCE 1988 70 OF US ECONOMIC GROWTH HAS COME FROM EXPORTS ALL 50 STATES HAVE SEEN EXPORTS RISE SINCE 1988 INDEED IN 1991 THE US RECAPTURED ITS PLACE AS THE WORLD'S LEADING EXPORTER SEVENTYTWO MILLION AMERICANS NOW WORK IN EXPORTRELATED JOBS A 42 INCREASE SINCE 1988 WITH THE INEVITABLE CONTINUED MOVEMENT TOWARD GLOBAL MARKETS OUR NATIONAL ECONOMIC WELLBEING IS INEXTRICABLY LINKED TO THE WORLD AROUND US THE WORLD'S ATTITUDES TOWARD AND PERCEPTIONS OF AMERICAN LEADERSHIP AND ITS ROLE AS A FORCE FOR DEMOCRACY AND INTERNATIONAL STABILITY AFFECT NOT JUST OUR POLITICAL RELATIONS BUT ALSO ECONOMIC RELATIONSHIPS AND MARKETS IT HAS BEEN A STEADFAST CONVICTION OF AMERICANS AFTER EACH GREAT CONFLICT IN THIS CENTURY TWO WORLD WARS KOREA VIETNAM AND NOW THE COLD WAR THAT WE COULD FINALLY GET BACK TO NORMAL TIMES COULD AT LEAST RETURN TO DOMESTIC PURSUITS AMERICANS HAVE ALWAYS CONSIDERED WAR AND CONFLICT AS ABERRATIONS FROM NORMALCY AND SO FOUR TIMES IN THIS CENTURY 1918 1945 1953 AND 1975 WE HAVE PRECIPITOUSLY DISARMED OURSELVES DECLARED A PEACE DIVIDEND AND TRIED TO TURN INWARD BUT EACH TIME OUR HOPES HAVE BEEN DASHED AGAINST THE ROCKS OF REALITY AND THAT HARSH REALITY IS THAT AS LONG AS THE HUMAN RACE IS AROUND THERE WILL BE NO PEACE NO INTERNATIONAL TRANQUILLITY THE LEVEL OF DANGER TO AMERICANS WILL VARY AND THE THREAT TO OUR HOMELAND TODAY FROM DELIBERATE MILITARY ATTACK IS QUITE SMALL BUT LIKE IT OR NOT OUR POLITICAL AND ECONOMIC INTERESTS ARE GLOBAL JUST AS THE ADVENT OF INTERCONTINENTAL BALLISTIC MISSILES IN THE 1960S MADE US PHYSICALLY VULNERABLE SO TODAY OUR DEPENDENCE ON FOREIGN ENERGY SUPPLIES AND ON FOREIGN TRADE OUR INTEGRATION WITH WORLD FINANCIAL MARKETS AND OTHER ECONOMIC REALITIES MAKE OUR ECONOMIC WELLBEING AND INDEED OUR DAILY LIVES EXCEPTIONALLY VULNERABLE TO EVENTS ABROAD THERE ARE MANY WHO SAY THAT WITH THE MENACE OF COMMUNISM GONE WE SHOULD DRASTICALLY REDUCE EXPENDITURES ON DEFENSE DIPLOMACY FOREIGN ASSISTANCE AND INTELLIGENCE IN SHORT THE INSTRUMENTS OF OUR INTERNATIONAL LEADERSHIP WE ARE REDUCING SPENDING IN THESE AREAS IN SOME CASES DRAMATICALLY BUT WE MUST NOT CUT SO QUICKLY OR SO DEEPLY THAT THE INEVITABLE REBUILDING IS ONCE AGAIN TRAGICALLY COSTLY BOTH IN TREASURE AND LIVES THE REAL WORLD A MESSY TANGLE OF RISKS AND OPPORTUNITIES CONTINUES TO NEED AMERICAN LEADERSHIP MOST NATIONS SEEK IT OUR OWN POLITICAL ECONOMIC AND SECURITY INTERESTS DEMAND IT THROUGHOUT THIS CENTURY WHEN AMERICA HAS BEEN STRONG AND ENGAGED INTERNATIONAL STABILITY DEMOCRACY AND INTERNATIONAL COOPERATION HAVE BEEN STRENGTHENED WHEN WE HAVE WEAKENED OURSELVES AND TURNED INWARD DIFFICULTY AND EVEN DISASTER HAS FOLLOWED AMERICANS MUST FINALLY ABANDON THE DREAM OF PUTTING DOWN THE BURDENS AND RESPONSIBILITIES AND COSTS OF GLOBAL LEADERSHIP IN A WORLD CAUGHT UP IN REVOLUTIONARY CHANGE WHERE INSTABILITY TURBULENCE AND VIOLENCE ARE WIDESPREAD AND WHERE NO ONE CAN PREDICT THE SHAPE OF EVENTS TO COME WE MUST NOT WEAKEN OUR ABILITY TO LEAD AND TO ACT NOR SHOULD WE SHAKE THE CONFIDENCE OF OTHERS THAT WE CAN AND WILL DO SO MR GATES IS THE FORMER DIRECTOR OF CENTRAL INTELLIGENCE AND A TRUSTEE OF THE WASHINGTONBASED FORUM FOR INTERNATIONAL POLICY 9308230040 930823 LEISURE & ARTS THE MOBILE GUIDE ETERNAL CITY UNDER LIGHTS BY FREDERIKA RANDALL ROME HOW CRUEL THE CAPITAL CAN SEEM TO VISITORS IN THE DOG DAYS OF SUMMER WHEN THE ROASTING SUN TURNS A NORMALLY PLEASANT STROLL ACROSS TOWN INTO A TEST OF FAITH OVER THE BURNING STONES THE SOL LEONE THAT RULES THE AUGUST SKY IS NOT ONLY HOT IT'S DISTINCTLY UNFLATTERING CASTING A NUMBING GLARE THAT STEAMROLLS THE LIFE OUT OF ROME'S MAJESTIC VISTAS AT THE HEIGHT OF SUMMER WHILE THE BETTERPREPARED TRAVELERS FROM ASIA PRESS ON THROUGH THE FORUM UNDER COTTON PARASOLS SOME OF US WOULD RATHER SIT LIMPLY INDOORS AND WAIT FOR DUSK WITH THE PERSIANE THE SHUTTERS TIGHTLY DRAWN FOR AS LOVERS OF ART AND ANTIQUITIES HAVE ALWAYS KNOWN LONG LONG BEFORE FELLINI SET ANITA ECKBERG LOOSE ON A DELICIOUS NIGHT SWIM IN THE TREVI FOUNTAIN THE BEST TIME TO VENTURE OUT AND DISCOVER THIS CITY IS AFTER SUNSET ROME BY NIGHT HAS INSPIRED SOME OF THE BEST PAGES BY ILLUSTRIOUS VISITORS FROM MONTAIGNE TO JOSEPH HELLER EVEN AS EARLY AS THE MIDDLE AGES ROME WAS A CITY THAT SHOWED ITSELF OFF AFTER DARK THE FACADES OF IMPORTANT CHURCHES AND BUILDINGS ABLAZE WITH HUNDREDS OF THOUSANDS OF TINY LAMPS BURNING WALNUT OIL LATER GOETHE WROTE ABOUT A NIGHT CANDLELIGHT VISIT TO THE CAPITOLINE MUSEUM AT LONG LAST THE CITY'S ARCHAEOLOGICAL AUTHORITIES HAVE DECIDED TO RECREATE THE MANY CHARMS OF THOSE FORMER NIGHTS IN WHAT IS PROVING TO BE A HIGHLY POPULAR TRIAL RUN THAT CONTINUES THROUGH SEPT 12 A GROUP CALLED ASSOCIAZIONE CIVITA HAS PERSUADED THE CITY OF ROME TO ENLIVEN A RARELY TOURED SITE THE IMPERIAL FORUMS OF TRAJAN AUGUSTUS AND NERVA WITH DRAMATIC THEATRICAL LIGHTING AND OPEN IT TO GUIDED NIGHT TOURS THE PROJECT IS CALLED NOTTURNO IMPERIALE OR IMPERIAL NIGHTS AND OFFERS AS THE NAME HINTS IN ITALIAN SOMETHING CLOSER TO A MARVELOUS VISUAL NOCTURNE ON THE CITY'S IMPERIAL PAST IN PLACE OF THE MORE POMPOUS SON E LUMIERE CELEBRATION ONE MIGHT HAVE EXPECTED AROUND 9 PM WHEN THE SKY IS RAPIDLY DARKENING TO A MUSSELSHELL BLUE AND THE SUN'S LAST GLOW STILL FAINTLY PICKS OUT THE UMBRELLA PINES SILHOUETTED AGAINST THE CAPITOLINE HILL GUIDES BEGIN LEADING SMALL GROUPS DOWN THE STAIRS INTO TRAJAN'S FORUM POINTING OUT THE REMAINS OF ITS GREEK AND LATIN LIBRARIES COURTS THE BASILICA ULPIA AND A MARKETPLACE THAT WAS CONSIDERED ONE OF THE WONDERS OF THE FIRST CENTURY ALL BUILT UNDER TRAJAN AT THE PEAK OF THE ROMAN EMPIRE'S DOMINATION OF THE ANCIENT WORLD AS THE LIGHTS FLIP ON THEY ILLUMINATE A SERIES OF ARCHAEOLOGICAL REMAINS AS NEATLY AS ILLUSTRATIONS IN A BOOK ONE TALL FAT COLUMN LYING PRONE THEN A STRAY CAPITAL AND TWO OTHER CARVED STONES PICKED OUT LIKE A SPARKLING NECKLACE ON THE GRASS AND FINALLY THE FINE CARVED RELIEF THAT SPIRALS UP AROUND THE FAMOUS 100FOOTHIGH COLUMN CELEBRATING TRAJAN'S DACIAN CAMPAIGN INTO MODERNDAY ROMANIA ODDLY ENOUGH THE DETAIL ON THAT COLUMN STANDS OUT BETTER UNDER THE NIGHTTIME ILLUMINATION THAN IT EVER DOES UNDER THE DAY'S NATURAL LIGHT THE COOL DELICATE NEOCLASSICAL LIGHTING EFFECTS GIVE THE EVENT ITS REAL MAGIC THE MAN BEHIND THIS FELICE DE MARIA WAS MICHELANGELO ANTONIONI'S LONGTIME DIRECTOR OF CINEMATOGRAPHY HE HAS USED A PALETTE OF COLORS THAT RUNS FROM STARK BLUEWHITE TO WARM YELLOW TIGHTLY FOCUSED AND DRAMATIC THE LIGHTS BRING ASTONISHING ARCHITECTURAL DEPTH TO RUINS ONE MIGHT OTHERWISE HAVE DIFFICULTY APPRECIATING SUCH AS THE BRICK FACADE OF TRAJAN'S MARKET OR THE TEMPLE OF MARS ULTOR VENGEFUL WAR IN THE FORUM OF AUGUSTUS BUT THEY ALSO MANAGE TO UNDERLINE THE RANDOM POETRY OF A PIECE OF BROKEN STATUARY LYING ON THE GROUND HAVING THUS GRABBED YOUR VISUAL ATTENTION THE INTERESTING AND WELLINFORMED TOUR GUIDES ARE ABLE TO GO AHEAD AND TELL YOU A GREAT DEAL ABOUT WHAT ONCE STOOD ON THESE SITES AND ABOUT THE SOCIETY THAT BUILT THEM AND ONE OF THE THINGS THEY WILL REMIND YOU ABOUT IS THAT TRAJAN'S COLUMN AND THE BUILDINGS OF THE IMPERIAL FORUMS LIKE OTHER ANCIENT MONUMENTS WERE ONCE DECORATED WITH BRIGHTLY COLORED PAINT AND COLORED MARBLE IN A STYLE THAT WOULD PROBABLY STRIKE US AS QUITE GARISH VIEWED THROUGH THE LENS OF THE PUREWHITE NEOCLASSICAL AESTHETIC WE HAVE INHERITED FROM THE 19TH CENTURY THINKING ABOUT THAT ONE CAN ALSO IMAGINE FUTURE EXPERIMENTS THAT COULD BE DONE WITH LIGHTING FOR EXAMPLE USING A RAINBOW SPECTRUM TO REPRODUCE THE TRUE COLORS OF ANTIQUITY YET WHILE ONE HAND HAS RECENTLY BEEN REVITALIZING ROME'S URBAN TEXTURE WITH IMAGINATIVE PROJECTS LIKE THIS ONE ANOTHER MORE SINISTER HAND HAS BEEN DESTROYING ON JULY 27 THREE CAR BOMBS WENT OFF ALMOST SIMULTANEOUSLY IN ROME AND MILAN KILLING FIVE PEOPLE AND INJURING SCORES DEMOLISHING THE NINTHCENTURY PORTICO OF THE CHURCH OF SAN GIORGIO IN VELABRO AND SERIOUSLY DAMAGING PARTS OF THE IMMENSE BASILICA ST JOHN LATERAN AFTER THE MAY BOMBING THAT KILLED FIVE AND BADLY DAMAGED THE UFFIZI GALLERY IN FLORENCE AUTHORITIES HAVE BEGUN TO TALK ABOUT MAFIATERRORIST ATTACKS AIMED AT ITALY'S ART HERITAGE BUT THOSE BOMBINGS FAR FROM FRIGHTENING PEOPLE AWAY FROM PUBLIC PLACES SEEM TO HAVE STIRRED A DEFIANT SORT OF CIVIC PRIDE WHEN I TOURED THE IMPERIAL FORUMS A LARGE CROWD OF PEOPLE WHO HADN'T BEEN ABLE TO GET RESERVATIONS THAT NIGHT WERE LEANING OVER THE RAILINGS TO FOLLOW THE LECTURE FROM TE STREET LEVEL ABOVE LOUDER THEY WOULD SHOUT WHEN THE GUIDE COULDN'T BE HEARD AND WHEN IT WAS OVER ONE WOMAN SAID WELL THAT WAS SO NICE I'M GOING TO COME DOWN HERE WITH MY BROOM TOMORROW AND OFFER TO SWEEP UP THEY CAN ALWAYS USE SOME EXTRA CLEANING HELP I SUPPOSE MS RANDALL IS A MILANBASED WRITER 9308230039 930823 LAW LEGAL BEAT MURDER CHARGE IN A CASE OF RAPE STRETCHES LIMITS OF LEGAL THEORY BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL IN AN UNUSUAL CRIMINAL PROSECUTION A CALIFORNIA DISTRICT ATTORNEY IS ARGUING THAT A WOMAN WHO DIED AFTER AN ALLEGED RAPE WAS MURDERED BECAUSE SHE LOST HER WILL TO LIVE THE 79YEAROLD WOMAN DIED LAST YEAR ABOUT A MONTH AFTER THE ALLEGED ASSAULT OF CONGESTIVE HEART FAILURE AND RENAL FAILURE A 19YEAROLD MAN JOSE ALONSO GARCIA STANTON CALIF WAS SUBSEQUENTLY INDICTED IN FEBRUARY ON FIRSTDEGREE MURDER AND SEXUAL ASSAULT CHARGES DAVID LA BAHN DEPUTY DISTRICT ATTORNEY AT THE ORANGE COUNTY DISTRICT ATTORNEY'S OFFICE IN SANTA ANA CALIF SAID THE LEGAL THEORY HE IS USING WHILE SELDOM APPLIED IS WELL ESTABLISHED BUT CRITICS SAY THE THEORY HASN'T BEEN USED QUITE SO BROADLY BEFORE THE CASE IN WHICH A TRIAL IS SCHEDULED TO START OCT 25 REVOLVES AROUND A SPECIAL PRINCIPLE OF HOMICIDE LAW THAT KICKS IN WHEN SOMEONE DIES ACCIDENTALLY DURING A CRIME SUCH DEATHS THOUGH UNINTENTIONAL ARE CONSIDERED FIRSTDEGREE MURDER IN THE CLASSIC EXAMPLE AN ARMED ROBBER WHO ACCIDENTALLY SHOOTS A BYSTANDER WOULD BE CHARGED WITH FIRSTDEGREE MURDER RATHER THAN THE LESSER CHARGE OF MANSLAUGHTER UNDER CALIFORNIA'S VERSION OF THIS SOCALLED FELONYMURDER RULE ROBBERS ALSO HAVE BEEN CONVICTED OF FIRSTDEGREE MURDER WHEN THEIR VICTIMS COLLAPSED OF HEART ATTACKS DURING OR SOON AFTER THE CRIME PROSECUTION DOCUMENTS SHOW THAT THE ALLEGED VICTIM CRIED ALMOST DAILY AFTER THE INCIDENT STOPPED TALKING ABOUT THE FUTURE AND SEEMED TO CEASE CARING ABOUT HER LIFE DEFENSE LAWYERS COUNTER THAT SHE HAD A POSITIVE ATTITUDE AND TOOK AN ACTIVE INTEREST IN HER MEDICAL TREATMENT THEY SAY SHE DIED AS A RESULT OF THE MISDIAGNOSIS OF AN ESPECIALLY LETHAL FORM OF LUNG CANCER WHICH THEY SAY SHOULD HAVE BEEN DETECTED MORE THAN A YEAR EARLIER EVEN IF YOU ACCEPT THE LEGAL THEORY FACTUALLY IT'S NOT TRUE SAYS LEONARD GUMLIA THE PUBLIC DEFENDER REPRESENTING MR GARCIA D WILLAS MILLER A RAPE PROSECUTOR IN THE QUEENS COUNTY DISTRICT ATTORNEY'S OFFICE NEW YORK CALLED THE PROSECUTION TACTIC A DARING STRETCH OF THE LAW I WISH THEM LUCK HE SAID I THINK THEY'LL HAVE A HUGE CAUSATION PROBLEM I MEAN HOW MANY OF MY VICTIMS DOWN THE ROAD EITHER COMMIT SUICIDE OR DIE OF DRUG OR ALCOHOL ABUSE BECAUSE OF RAPE AND PETER ARENELLA A CRIMINALLAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES SAID PROSECUTORS WOULD HAVE TO PROVE THE DEATH WAS FORESEEABLE AS AWFUL A CRIME AS RAPE IS AND YOU CAN TALK ABOUT RAPE AS A SOUL MURDER PEOPLE DON'T USUALLY LITERALLY DIE FROM IT HE SAID THIS IS A STRETCH OF A RULE THAT ITSELF STRETCHES NORMAL RULES FOR HOMICIDE LIABILITY MR ARENELLA ADDED PEOPLE WHO THINK ABOUT CRIMINAL LAW HAVE ALWAYS CRITICIZED THE FELONYMURDER RULE BECAUSE YOU DON'T HAVE TO SHOW THE NORMAL INTENT REQUIREMENT FOR MURDER DESPITE CRITICISM OF THE RULE FROM PARTS OF ACADEMIA HOWEVER THE DOCTRINE IS ACCEPTED BY MOST JUDGES THE MEXICAN GOVERNMENT HAS INTERVENED IN THE HIGHPROFILE CASE AGAINST MR GARCIA WHO IS A MEXICAN CITIZEN BY INFORMALLY ASKING PROSECUTORS TO DROP THE MURDER CHARGE CREDITORS AND FORMER PARTNERS OF GASTON & SNOW NEARED AGREEMENT ON A PAYMENT PLAN FOR THE DEFUNCT LAW FIRM'S DEBTS EIGHTYFIVE OF THE LAW FIRM'S 151 FORMER PARTNERS HAVE COMMITTED TO PAY CREDITORS A TOTAL OF ABOUT 81 MILLION IN CASH THAT LEVEL OF PARTNER PARTICIPATION IS A SUBSTANTIAL INCREASE OVER THE 24 FORMER PARTNERS WHO COMMITTED TO AN EARLIER PROPOSAL FOR THE FIRST TIME WE CAN STATE WITH A DEGREE OF CERTAINTY THAT THE END IS VERY NEAR SAID DAVID PAUKER A SPOKESMAN FOR HARRISON GOLDIN THE TRUSTEE FOR GASTON & SNOW IN BANKRUPTCY COURT PROCEEDINGS IN NEW YORK THE BOSTON LAW FIRM DISSOLVED NEARLY TWO YEARS AGO AND FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ALFRED J BIANCO A PARTNER WITH LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER IN NEW YORK WHICH REPRESENTS THE CREDITORS COMMITTEE IN THE CASE SAID THE COMMITTEE WILL ACCEPT THIS LATEST PROPOSAL IF AS EXPECTED ABOUT NINE MORE PARTNERS AGREE TO IT IF NOT THE CREDITORS MAY PRESS ON WITH AN EARLIER REQUEST THAT THEY BE ALLOWED TO ABANDON EFFORTS TO ESTABLISH A PAYMENT PLAN AND INSTEAD SUE THE FORMER PARTNERS DIRECTLY WHO'S NEWS REAL ESTATE SPECIALIST GREGORY A THORPE JOINED CHICAGO LAW FIRM RUDNICK & WOLFE AS A PARTNER MR THORPE WHO SPECIALIZES IN COMMERCIAL LENDING WAS FORMERLY WITH SONNENSCHEIN NATH & ROSENTHAL EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9308230038 930823 CREDIT MARKETS RATES APPEAR TO SHED THE INFLATION PREMIUM' BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER FEARING FOR MORE THAN A DECADE THAT THE INFLATION THREAT WOULD NEVER GO AWAY BOND INVESTORS ARE BEGINNING TO CHANGE THEIR MINDS IT LOOKS LIKE PEOPLE ARE MORE CONVINCED THAT INFLATION IS NOT GOING TO BE A PROBLEM IN COMING YEARS SAYS ROBERT ARIEL ASSISTANT PROFESSOR OF FINANCE AT BARUCH COLLEGE OF THE CITY UNIVERSITY OF NEW YORK THE TREND IS EVIDENT IN THE LONGTERM BOND YIELD WHICH FELL TO 620 THURSDAY AS INVESTORS RUSHED TO BUY TREASURY BONDS BEFORE EDGING UP TO 621 FRIDAY UNTIL RECENTLY INVESTORS HAVE BEEN UNWILLING TO BELIEVE THAT LOW INFLATION WAS HERE TO STAY THEY DEMANDED AN INFLATION PREMIUM AS COMPENSATION FOR THE RISKS OF INVESTING IN LONGERTERM SECURITIES KNOWING THAT INFLATION ALWAYS HURTS FIXEDINCOME INVESTORS BUT THE INFLATION PREMIUM THAT HAS BEEN PLUGGED INTO LONGTERM RATES FOR A DECADE NOW MAY BE GETTING WRUNG OUT AS A RESULT THE REAL INTEREST RATE THE YIELD MINUS THE CURRENT INFLATION RATE ON THE 30YEAR BOND HAS DROPPED TO ABOUT 340 FROM AROUND 420 IN MIDJANUARY SOME THINK THE REAL RATE COULD SHRINK FURTHER THE REAL RATE IS STILL HIGH COMPARED WITH THE PERIOD BEFORE 1981 WHEN THE INFLATION PREMIUM BEGAN TO CREEP INTO BOND YIELDS BACK THEN REAL INTEREST RATES TENDED TO RUN CLOSER TO 20 PERCENTAGE POINTS THE HIGHER REAL INTEREST RATE FIGURES OF RECENT YEARS REFLECT THE INFLATION PREMIUM THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND SOLD AUG 12 HAS DROPPED ABOUT 014 PERCENTAGE POINT TO 621 FRIDAY MEANWHILE THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD HAS RISEN MORE THAN 1 3/4 POINTS OR MORE THAN 1750 FOR A BOND WITH 1000 FACE VALUE TO 100 13/32 THE YIELD ON THE 10YEAR NOTE HAS DROPPED TO 561 THE LOWEST SINCE APRIL 1971 THERE HAS BEEN PLENTY TO CHEER ABOUT IN THE BOND MARKETS CONGRESS PASSED A BUDGET PACKAGE AIMED AT RESTRAINING FEDERAL SPENDING ECONOMIC GROWTH REMAINS SLUGGISH AND INFLATION IS SUBDUED OTHER THAN A BRIEF HICCUP IN INFLATION RATES IN THE SPRING LOW INFLATION HAS PREVAILED FOR MUCH OF THE PAST THREE YEARS FOR SOME TIME ECONOMISTS HAVE BEEN SAYING THAT INFLATION SHOULDN'T BE A WORRY FOR INVESTORS BUT INVESTORS HAVE BEEN SLOW TO BELIEVE THEM THE CHART SHOWS HOWEVER THAT INVESTORS TODAY ENVISION LOWER INTEREST RATES THAN THEY EXPECTED JUST EIGHT MONTHS AGO SEE ACCOMPANYING ILLUSTRATION WSJ AUG 23 1993 THE CHART IS BASED ON MR ARIEL'S STUDY COMPARING PRICES OF ZEROCOUPON TREASURY BONDS MATURING IN CONSECUTIVE YEARS ZEROS ARE BONDS SOLD AT A DEEP DISCOUNT AND PAID OFF IN FULL AT MATURITY SUCH A COMPARISON CAN HELP GAUGE WHETHER INVESTORS EXPECT ONEYEAR TREASURY BILL RATES TO RISE OR FALL IN THE FUTURE CHANGING INFLATIONARY EXPECTATIONS CAN MEAN SHARP SWINGS IN THE PRICES PAID TODAY FOR ZEROS MATURING IN DIFFERENT YEARS WHAT WE'RE SEEING NOW IS AN ADJUSTMENT TO WHAT SEEMED TO BE AN OVERSHOOTING OF THE INFLATION NUMBERS EARLIER THIS YEAR SAYS KATHLEEN STEPHANSEN SENIOR ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CO DURING MUCH OF THE FIRST QUARTER INFLATION FEARS GRIPPED THE BOND MARKET AS A NUMBER OF GOVERNMENT REPORTS SUGGESTED INFLATION WAS ACCELERATING BUT NOW MANY INVESTORS VIEW THAT BRIEF JUMP AS AN ABERRATION ACCORDING TO MS STEPHANSEN INFLATION RATES ARE LIKELY TO HOVER IN A 3 TO 35 RANGE RATHER THAN DROP SHARPLY AS JULY ENDED INFLATION STOOD AT 28 AS MEASURED BY YEARTOYEAR CHANGES IN THE CONSUMER PRICE INDEX IN HER VIEW PEOPLE ARE ADJUSTING TO STEADY LOW INFLATION RATES RATHER THAN EXPECTING EVEN LOWER INFLATION RATES MOREOVER IT'S UNCLEAR WHETHER THE RECENT EASING OF INVESTORS' INFLATION EXPECTATIONS WILL LEAD TO STILL MORE DECLINES IN BOND YIELDS IN THE WEEKS AHEAD IT'S POSSIBLE BUT SOME INVESTORS ARE SKEPTICAL INTEREST RATES HAVE FALLEN SO FAR AND SO FAST THAT ANY NEGATIVE NEWS WILL BE LIKE A RUBBER BAND AND SHOOT INTEREST RATES RIGHT UP SAYS ROBERT ANDRES WHO MANAGES FIXEDINCOME INVESTING AT MARTINDALE ANDRES & CO OF WEST CONSHOHOCKEN PA IN THE PAST FEW WEEKS MR ANDRES HAS SOLD MUCH OF HIS HOLDING OF LONGTERM TREASURYS THAT WOULD BE WORTH LESS IF BOND YIELDS ROSE MEANWHILE HE HAS PUMPED MORE MONEY INTO LESSRISKY THREEYEAR TREASURY NOTES WITH LONGTERM YIELDS HAVING DROPPED AS FAR AS THEY HAVE HE SAYS IT ISN'T A PRUDENT OR RATIONAL DECISION TO BUY MORE LONGTERM BONDS MR ANDRES SAYS HE WOULDN'T BE SURPRISED TO SEE A CORRECTION THAT PUSHES THE YIELD ON THE 30YEAR TREASURY BOND BACK UP TO 7 BY THE END OF THE YEAR US TREASURY NOTES AND BONDS ENDED A LOWVOLUME SESSION NARROWLY MIXED THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/4 POINT TO A PRICE OF 100 15/32 AND A YIELD OF 621 THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT TO 101 1/32 FOR A YIELD OF 561 YIELDS MOVE IN THE OPPOSITE DIRECTION OF PRICES WITH NO MAJOR ECONOMIC NEWS FRIDAY MANY TRADERS SIMPLY SCALED BACK POSITIONS SLIGHTLY TO LOCK IN PROFITS BEFORE THE WEEKEND THE TREASURY DEPARTMENT PLANS TO SELL 16 BILLION IN TWOYEAR NOTES TOMORROW AND 11 BILLION IN NEW FIVEYEAR NOTES WEDNESDAY IN WHENISSUED TRADING LATE FRIDAY THE TWOYEAR NOTE YIELDED 398 AND THE FIVEYEAR NOTE 499 FRIDAY'S BOND MARKET DEMONSTRATED DRAMATIC RESILIENCE SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC THERE'S BEEN NO WILLINGNESS TO TAKE PROFITS OF CONSEQUENCE AND WHEN WE DO SEE SOME SELLING PRESSURE IT IS QUICKLY GREETED WITH BUYER DEMAND IN THE CORPORATE BOND MARKET INTERNATIONAL BUSINESS MACHINES CORP'S DEBT TRADED DOWN ON FRIDAY WHEN MOODY'S INVESTORS SERVICE INC LOWERED IBM CREDIT RATINGS AMONG THE DOWNGRADES WERE THE COMPANY'S SENIOR LONGTERM DEBT RATING WHICH FELL TO SINGLEA3 FROM SINGLEA1 AND THE PREFERREDSTOCK RATING WHICH DECLINED TO BAA1 FROM SINGLEA3 THE MOVE AFFECTS ABOUT 28 BILLION OF DEBT AND OTHER SECURITIES FROM IBM AND ITS FINANCIALLY SUPPORTED SUBSIDIARIES THE MOVE BOOSTED YIELDS ON IBM'S BONDS THE COMPANY'S 6 3/8 COUPON BONDS MATURING IN 2000 YIELDED 602 LATE FRIDAY COMPARED WITH 593 ON THURSDAY KASH N' KARRY FOOD STORES INC CANCELED AN OFFERING OF JUNK DEBT AMID FEARS OF RISING YIELDS AND WEAK INVESTOR DEMAND HAD KASH N' KARRY DECIDED TO PROCEED WITH THE DEBT OFFERING IT PROBABLY WOULD HAVE CARRIED A YIELD EXCEEDING 13 THE COMPANY BEGAN MAKING PLANS IN MAY TO SELL THE DEBT BACK THEN THE COMPANY EXPECTED TO ISSUE THE 150 MILLION OF PAYINKIND NOTES AT 1175 PAYINKIND NOTES GIVE INVESTORS MORE NOTES IN LIEU OF CASH PAYMENTS BUT AS TIME PASSED THE PLANNED YIELD HAD TO BE INCREASED AS MORE JUNK BOND DEALS CAME TO MARKET ALSO THERE WERE INVESTOR CONCERNS ABOUT THE FINANCIAL STRENGTH OF THE COMPANY 9308230037 930823 RETAILING AS NATIONAL BRANDS CHOP PRICES STORES SCRAMBLE TO DEFEND PRIVATELABEL GOODS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL THE PRICE BATTLE BETWEEN BIG BRANDS AND PRIVATE LABELS IS TAXING THE NATION'S SUPERMARKET AND DRUGSTORE CHAINS WHILE CONSUMERS ARE BENEFITING FROM PRICE CUTS ON A GROWING LIST OF POPULAR BRANDS RETAILERS SAY THEIR OWN PRIVATELABEL KNOCKOFFS ARE THREATENED AT THE SAME TIME FALLING PRICES OF BEST SELLERS FROM TIDE DETERGENT TO MARLBORO CIGARETTES ARE HURTING LOWERPRICED WEAKERSELLING BRANDS A WORRISOME TREND FOR RETAILERS BECAUSE SECONDTIER BRANDS BRING STORES FATTER MARGINS RETAILERS ARE TRYING TO KEEP THESE LESSER BRANDS AFLOAT BY SQUEEZING MANUFACTURERS FOR MORE PROMOTIONAL DOLLARS AND IN RETURN PROMISING PROMINENT STORE DISPLAYS THEY'RE ALSO HEAVILY PROMOTING THEIR INSTORE BRANDS AND IN SOME CASES CONSIDERING SLASHING THEIR PRICES TO THE DETRIMENT OF CONSUMERS SOME RETAILERS AREN'T PASSING ON THE FULL MANUFACTURER PRICE CUT IN ORDER TO PROTECT THEIR PROFIT MARGINS AND PRIVATELABEL BRANDS TRIGGERING THE TURMOIL ARE THE RECENT DECISIONS OF PHILIP MORRIS COS AND PROCTER & GAMBLE CO TO LOWER PRICES ON CORE BRANDS IN ORDER TO FIGHT OFF PRIVATELABEL GAINS AND CLOBBER OTHER BRANDNAME RIVALS EARLIER THIS MONTH PHILIP MORRIS RJR NABISCO HOLDINGS INC AND OTHER CIGARETTE MAKERS PERMANENTLY ADOPTED A DEEP PRICE CUT ANNOUNCED LAST APRIL AS A TEMPORARY PROMOTION P&G IN JULY ANNOUNCED PRICE CUTS OF AS MUCH AS 15 ON LIQUID LAUNDRY DETERGENTS FABRIC SOFTENERS AND DISH SOAP AND IN MAY LOWERED DIAPER PRICES FOR THE THIRD TIME IN 12 MONTHS SOME RETAILERS SAY THE COMPANY HAS HINTED THAT IT WILL REDUCE CREST TOOTHPASTE PRICES THIS FALL ALONG WITH PRICES OF SOME OTHER HEALTH AND BEAUTY PRODUCTS P&G WHICH WON'T COMMENT ON ITS FUTURE PLANS HAS BEEN CUTTING PRICES AND REDUCING PROMOTIONS AND COUPONS IN A NUMBER OF CATEGORIES FOR MORE THAN A YEAR P&G'S COMPETITORS MEANWHILE ARE RETALIATING BY SPENDING MORE ON SPECIAL DEALS FOR RETAILERS AND CONSUMERS RETAILERS SMELLING BLOOD ARE MILKING THESE COMPANIES FOR ALL THE PROMOTIONAL MONEY THEY CAN GET IN LAUNDRY DETERGENTS FOR EXAMPLE PRICE CHOPPER SUPERMARKETS SAYS WE'RE ABLE TO PROVIDE CONSUMERS WITH A LOWER PRICE BECAUSE OF ADDITIONAL DEALS BEING OFFERED BY ANGLODUTCH UNILEVER AND COLGATEPALMOLIVE CO WE'RE LOOKING FOR MORE PROMOTIONS ESPECIALLY FROM BRANDS THAT AREN'T NO 1 OR 2 IN THE CATEGORY SAYS MARTIN GRASS PRESIDENT OF RITE AID CORP A DRUGSTORE CHAIN BASED IN HARRISBURG PA THESE MANUFACTURERS WANT TO INCREASE MARKET SHARE SO THEY'LL GIVE YOU MORE PROMOTIONAL DOLLARS IN FACT DIAPER MAKER KIMBERLYCLARK CORP HAS BEEN SO FORTHCOMING WITH PROMOTIONAL FUNDS THAT ONE RETAILER SAYS HE RECENTLY APPROACHED P&G'S DIAPER REPRESENTATIVES AND TOLD THEM YOU NEED TO FIGURE OUT WAYS TO BE MORE CREATIVE OR KIMBERLYCLARK WILL GET THE LION'S SHARE OF THE ADS AND DISPLAY SPACE IN OUR STORE P&G'S COMPETITORS SAY THEY'RE FULLY PREPARED TO USE COUPONS AND TRADE PROMOTIONS TO COMBAT THE CINCINNATI GIANT'S PRICE CUTS JOHN W TEETS CHAIRMAN AND CHIEF EXECUTIVE OF DIAL CORP WHOSE PUREX AND MULE TEAM BORAX DETERGENTS LAG BEHIND P&G'S TIDE AND CHEER SAYS I SEE MORE DISCOUNTS THROUGH COUPONS AS COMPANIES RESHUFFLE THEIR MARKETING DOLLARS AT COLGATE CHAIRMAN REUBEN MARK SAYS THAT WITH THE PROMOTIONAL SUPPORT BEHIND THESE BRANDS A GOOD SHOPPER SHOULD STILL BE ABLE TO ENJOY A MEANINGFUL PRICE DIFFERENTIAL MANY SHOPPERS ARE IN FACT ENJOYING A PLETHORA OF BARGAINS REGINA BRINKER SAYS SHE OFTEN SAVES SUBSTANTIALLY WHEN SHE GOES SHOPPING BECAUSE COUPONS AND REDUCED SHELF PRICES ARE SO ABUNDANT MY BRAND LOYALTY CAN SWITCH DEPENDING ON WHEN I HAVE A COUPON FOR ONE BRAND OR WHEN THE SHELF PRICE OF ANOTHER IS LOWER SAYS MRS BRINKER A JEWELRY MAKER WHO LIVES IN A PITTSBURGH SUBURB ALL THIS PRICE TURMOIL IS STARTING TO HURT RETAILERS' PRIVATELABEL BRANDS WHICH BRING THEM HIGHER MARGINS THAN NATIONAL BRANDS FOR EXAMPLE P&G'S DECISION IN MAY TO SLASH LUVS DIAPER PRICES 16 ESSENTIALLY TURNING THE LINE INTO A LOWERPRICED BRAND HAS PROMPTED SOME SHOPPERS TO ABANDON PRIVATE LABELS AS A RESULT SOME RETAILERS ARE CONSIDERING LOWERING PRIVATELABEL PRICES RITE AID HAS BEEN SO CONCERNED ABOUT THE EFFECT OF P&G'S DIAPER PRICE CUTS ON ITS PRIVATELABEL DIAPERS THAT IT HAS PRESSURED SUPPLIERS FOR SAVINGS I HAVE SEEN OUR PRIVATELABEL PEOPLE IN THE DIAPER BUSINESS RESPOND IN TERMS OF REDUCING THEIR COSTS SAYS RITE AID'S MR GRASS BUT THE PROBLEM IS THAT PRIVATELABEL MAKERS MAY START TO SKIMP ON QUALITY AND WE CAN'T AFFORD TO REDUCE THE QUALITY OF OUR PRIVATE LABELS SAYS TOM LOWE MERCHANDISING VICE PRESIDENT AT PRICE CHOPPER WHICH IS BASED IN SCHENECTADY NY A NUMBER OF RETAILERS SAY THAT THEY'RE CONSIDERING DISCONTINUING LUVS TO PROTECT PRIVATELABEL DIAPERS BUT THAT'S A RISKY STRATEGY RETAILERS SAY THEY HAVE TO STOCK P&G ITEMS EVEN BRANDS THAT DRAIN PROFITS BECAUSE THEY BRING CUSTOMERS INTO STORES SAYS BOB LYONS SENIOR VICE PRESIDENT OF MARKETING AND MERCHANDISE AT DRUG EMPORIUM INC COLUMBUS OHIO WE'RE GOING TO SELL A 24PACK OF P&G'S CHARMIN FOR VERY CLOSE TO COST IN OUR BACKTOSCHOOL AD COULD I GO OUT AND BUY ANOTHER BRAND AND MAKE MORE MONEY YES BUT CHARMIN'S GOING TO ATTRACT THE CUSTOMERS FRUSTRATING YES BUT WE'RE FIGHTING FOR CUSTOMERS EVERYBODY IS OTHER RETAILERS ARE FOCUSING THEIR EFFORTS TO SELL PRIVATELABEL GOODS ON CATEGORIES WHERE BIG BRAND MAKERS AREN'T EXPECTED TO LOWER PRICES SINCE IT ISN'T AS MUCH FUN TO PLAY THE PRIVATELABEL GAME IN DIAPERS WE'RE PRODUCING MORE MARGINS WITH PRIVATE LABELS IN FOOD SAYS THE CHIEF EXECUTIVE OFFICER OF A SMALL MIDWESTERN SUPERMARKET CHAIN STILL OTHERS ARE CONTINUING TO PROMOTE ALL THEIR INHOUSE BRANDS AGGRESSIVELY THEY'RE INSTALLING DISPLAY CASES IN THE MIDDLE OF STORE AISLES AND SETTING BIG BRANDS NEXT TO EQUIVALENT LOWERPRICED PRIVATELABEL IMITATIONS THIS INCREASINGLY POPULAR TACTIC IS CALLED SHIELDING SOME CONSUMERS WHO HAVE SWITCHED TO PRIVATE LABELS AREN'T RETURNING TO BRANDS DESPITE THE PRICE CUTS PRIVATELABEL GOODS GENERALLY ARE STILL CHEAPER ONE CONSUMER JEAN STRIEGL WHO ONCE SMOKED RJR'S SALEMS NOW SMOKES ONLY GENERIC CIGARETTES DESPITE THE RECENT PRICE REDUCTIONS I CAN BUY A CARTON OF SALEMS FOR 15 BUT A CARTON OF GENERICS IS STILL CHEAPER ABOUT 12 MRS STRIEGL SAYS TAKING THEIR CUE FROM P&G WHICH IS SLASHING 13000 JOBS AND CLOSING 30 PLANTS RETAILERS ARE ALSO CONTEMPLATING WAYS TO CUT THEIR OVERHEAD RITE AID FOR EXAMPLE IS INSTALLING NEW TECHNOLOGY TO IMPROVE COMMUNICATIONS BETWEEN STORES AND HEADQUARTERS THE ONLY PLACE THE RETAILER CAN MAKE UP FOR REDUCED PRICES IS BY IMPROVING OPERATING EFFICIENCIES MR GRASS SAYS 9308230036 930823 INVESTOR AB FEELS DRAG FROM AFFILIATES STRING OF WOES HURTS FLAGSHIP WALLENBERG COMPANY BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AS THE STOCKHOLM STOCK EXCHANGE ROARED AHEAD THIS YEAR ONE OF THE MARKET'S MOST RENOWNED BLUECHIP ISSUES INVESTOR AB GOT LEFT IN THE DUST FRIDAY'S TRADING SESSION HERE UNDERLINED THE WOES OF INVESTOR THE FLAGSHIP HOLDING COMPANY OF SWEDEN'S WALLENBERG GROUP DISAPPOINTING FIRSTHALF EARNINGS AND A BLEAK OUTLOOK FOR ITS STRUGGLING SAABSCANIA AB UNIT SENT INVESTOR'S BENCHMARK CLASS B STOCK DOWN TO A CLOSE OF 144 KRONOR 1810 A DROP OF SEVEN SWEDISH KRONOR OR 46 IN HECTIC TRADING STOCKHOLM'S AFFAERSVAERLDEN GENERAL INDEX DESPITE A 13 DECLINE FRIDAY IS UP 435 FOR THE YEAR TO DATE INVESTOR'S CLASS B SHARES HAVE GAINED ONLY 18 IN THE PERIOD IRONICALLY MANY ANALYSTS ARGUE INVESTOR'S UNDERPERFORMANCE PROMISES TO BE THE STOCK'S BIGGEST ATTRACTION TO INVESTORS IN COMING MONTHS IF YOU AGREE WE'RE ON THE VERGE OF A TWOYEAR BULL MARKET ACROSS EUROPE WITH THE BEST YET TO COME IN TERMS OF CORPORATE EARNINGS INVESTOR COULD BE JUST THE TICKET SAYS SEAN LINDSAY A SCANDINAVIAN ANALYST FOR LONDON SECURITIES FIRM BARCLAYS DE ZOETE WEDD BECAUSE IT'S LAGGED SO MUCH IT COULD BE A WONDERFUL WARRANT ON THE STOCKHOLM MARKET INVESTOR USED TO BE A DOWDY STOCK POPULAR AMONG WIDOWS AND ORPHANS HOLDERS THESE DAYS HAVE TO STEEL THEMSELVES FOR GREATER RISKS KEY AFFILIATES HAVE VEERED IN AND OUT OF SEVERE DIFFICULTY ALL YEAR WHIPSAWING INVESTOR'S SHARE PRICE AND SPARKING SPECULATION ABOUT THE WALLENBERGS' ABILITY TO HOLD TOGETHER THEIR INDUSTRIAL EMPIRE FOR EXAMPLE INVESTOR'S MANAGEMENT WAS DRAGGED INTO THE TENSE STRUGGLE TO RESCUE SKANDINAVISKA ENSKILDA BANKEN SWEDEN'S BIGGEST BANK WITHOUT TURNING TO THE STATE FOR A BAILOUT THAT LONG APPEARED UNAVOIDABLE THE BIG STOCKHOLM BANK IS A KEY WALLENBERG GROUP AFFILIATE AND INVESTOR AND OTHER WALLENBERG INTERESTS WILL PARTICIPATE IN THE 53 BILLION KRONOR 6662 MILLION SHARE OFFERING UNVEILED LAST WEEK TO KEEP SE BANKEN INDEPENDENT AND UNDER PRIVATE OWNERSHIP THE CRASH OF A GRIPEN JET FIGHTER DURING AN EXHIBITION FLIGHT OVER DOWNTOWN STOCKHOLM EARLIER THIS MONTH LEFT A CLOUD OVER A GIANT INDUSTRIAL PROGRAM CRUCIAL TO SURVIVAL OF SAABSCANIA'S AIRCRAFT DIVISION IT NOW APPEARS THAT THE FAULTY CONTROL SYSTEM DESIGN THAT CAUSED THE CRASH CAN BE CORRECTED AT MODERATE COST AND LITTLE DISRUPTION OF PRODUCTION OF THE NEW PLANE FOR THE SWEDISH AIR FORCE YET EVEN BEFORE THE GRIPEN DEBACLE SAABSCANIA WAS GIVING INVESTOR HEADACHES DURING THE FIRST HALF SAABSCANIA PRETAX PROFIT PLUNGED 50 TO 581 MILLION KRONOR FROM 12 BILLION KRONOR A YEAR EARLIER AFTER CHARGES FOR DEPRECIATION AND FINANCIAL COSTS RELATED TO ITS 1991 BUYOUT THE UNIT SKIDDED TO A LOSS OF 223 MILLION KRONOR COMPARED WITH A PROFIT OF 597 MILLION KRONOR A YEAR EARLIER CITING CONTINUED WEAK DEMAND FOR BOTH OF SAABSCANIA'S BIGGEST PRODUCTS HEAVY TRUCKS AND COMMUTER AIRCRAFT INVESTOR WARNED THAT THE UNIT'S FULLYEAR PROFIT WILL BE SIGNIFICANTLY LOWER THAN THE PREVIOUS YEAR MAKING MATTERS WORSE THAT MARKET DOWNTURN COINCIDES WITH THE PEAK INVESTMENT PHASE OF A NEW PRODUCT DEVELOPMENT CYCLE AT SCANIA NO QUICK FIX IS LIKELY THE SCANIA HEAVY TRUCK DIVISION SAABSCANIA'S MAIN MONEY SPINNER RELIES ON RECESSIONRIDDEN EUROPEAN MARKETS FOR MOST OF ITS SALES BUT ANALYSTS SAY RECOVERY ISN'T EXPECTED BEFORE 1995 AT THE EARLIEST INVESTOR ITSELF REPORTED AN 81 PLUNGE IN FIRSTHALF PRETAX PROFIT TO 406 MILLION KRONOR FROM 208 BILLION KRONOR THE PREVIOUS YEAR MUCH OF THE DROP REFLECTS A DECLINE IN CAPITAL GAINS FROM SHARE AND ASSET SALES TO 986 MILLION KRONOR IN THIS YEAR'S FIRST SIX MONTHS FROM A HEFTY TWO BILLION KRONOR A YEAR EARLIER MOST SWEDISH INVESTORS PAY MORE ATTENTION TO DEVELOPMENT OF NET ASSET VALUE THAN PRETAX PROFIT WHEN ASSESSING INVESTOR'S PERFORMANCE BUT SAABSCANIA'S TROUBLES TRIGGERED A SURPRISE 22 DROP IN NET ASSET VALUE AFTER THE FIRST SIX MONTHS TO 2544 BILLION KRONOR OR 140 KRONOR A SHARE FROM 3242 BILLION KRONOR OR 178 KRONOR A SHARE AT THE END OF 1992 SAABSCANIA'S VANISHING VALUE WAS ALMOST CERTAINLY EXAGGERATED BY THE COMPLEX VALUATION MODEL CREATED BY INVESTOR APPLYING A WEIGHTED BENCHMARK MARKET YIELD FOR SWEDISH MANUFACTURING COMPANIES TO SAABSCANIA'S ROLLING 12MONTH PROFIT TALLIES UNDER THAT MODEL THE VALUE OF SAABSCANIA'S OPERATIONS FELL TO 67 KRONOR A SHARE FROM 106 KRONOR A SHARE AT THE BEGINNING OF THIS YEAR YET IF SAABSCANIA'S BOOK VALUE IS CALCULATED IN A TRADITIONAL MANNER INVESTOR'S NET ASSET VALUE WOULD HAVE BEEN UNCHANGED AT 167 KRONOR A SHARE DURING THE FIRST HALF THE IMPACT OF THE SAABSCANIA VALUATION MODEL ON INVESTOR'S NET ASSET VALUE HAS BEEN MUCH GREATER THAN ANTICIPATED AND PEOPLE HAVE BEEN SHOCKED MUSED ONE OFFICIAL WE'VE DECIDED TO GIVE A BOOK VALUE FIGURE AS ADDED PERSPECTIVE TO FACILITATE THINGS FOR SMALL SHAREHOLDERS BUT WE'LL CONTINUE TO USE THE VALUATION MODEL TOO UNTIL SOMEONE COMES UP WITH SOMETHING BETTER STILL THE CONFUSING FLAP OVER SAABSCANIA'S VALUATION MATTERS LESS TO INVESTORS THAN HINTS OF A SHIFT IN INVESTOR'S OWN STRATEGY SOME ANALYSTS SAY UNDER A SWEEPING CORPORATE OVERHAUL INVESTOR HAS SHED MANY PERIPHERAL BUSINESSES IN RECENT YEARS FROM RESTAURANT COUPONS AND SHIPPING TO OPTIONS TRADING BUT EYEBROWS REALLY WENT UP SIX WEEKS AGO WHEN INVESTOR SOLD ITS ENTIRE HOLDING IN ASEA AB SWEDISH PARENT OF ABB ASEA BROWN BOVERI LTD ASEA AND ABB HAD ALWAYS RANKED AMONG THE INNER CORE OF STRATEGIC VIRTUALLY UNTOUCHABLE HOLDINGS IN THE WALLENBERGS' PORTFOLIO TO BE SURE THE ASEA TRANSACTION WAS DONE IN A TYPICALLY DEFT MANNER TO MAXIMIZE CONTINUED WALLENBERG GROUP CONTROL INVESTOR FIRST SWAPPED ASEA CLASS A STOCK WITH HIGH VOTING RIGHTS FOR AN EQUAL NUMBER OF LOWERVOTINGRIGHTS ASEA B SHARES FROM ANOTHER WALLENBERG AFFILIATE INCENTIVE AB THE ASEA B SHARES WERE THEN SOLD BY INVESTOR IN AN INTERNATIONAL PLACEMENT THAT FETCHED 29 BILLION KRONOR STILL THE ASEA DIVESTMENT AND INVESTOR'S RECENT SALE OF A SMALL STAKE IN ANOTHER STRATEGIC AFFILIATE STORA KOPPARBERGS BERGSLAGS AB HIGHLIGHT AN APPARENT STRATEGIC PARADOX INVESTOR ACQUIRED SAABSCANIA AS AN OPERATING UNIT THAT WOULD GENERATE STEADY CASH FLOW INVESTOR WOULD USE THAT CASH TO REDUCE ITS HUGE DEBT LOAD AS WELL AS TO SHORE UP HOLDINGS IN STRATEGIC AFFILIATES SUCH AS STORA ASTRA AB ATLAS COPCO AB TELEFON AB LM ERICSSON AND ELECTROLUX AB BUT THE EXPECTED CASH FLOW HASN'T MATERIALIZED AND INVESTOR HAS BEEN FORCED INSTEAD TO PRUNE STAKES IN ITS STRATEGIC PORTFOLIO TO PLUG SAABSCANIA'S LOSSES YET THE WALLENBERGS CAN'T TRIM HOLDINGS MUCH FURTHER WITHOUT SERIOUSLY ERODING THEIR CLOUT ANALYSTS WARN ADMITTING DISAPPOINTMENT OVER THE RESULTS SO FAR OF THE SAABSCANIA BUYOUT INVESTOR CHIEF EXECUTIVE CLAES DAHLBAECK DISMISSED SUGGESTIONS OF ANY CHANGE IN COMPANY STRATEGY WE'RE STICKING TO OUR GUNS AND WILL JUST HAVE TO BRIDGE OVER SAABSCANIA'S CURRENT PROBLEMS MR DAHLBAECK DECLARED THE STRATEGY IS STILL TO INCREASE NOT DECREASE HOLDINGS USING CASH FROM SAABSCANIA AND CONCENTRATE THE PORTFOLIO TO STRONG OWNERSHIP IN A LIMITED NUMBER OF CORPORATIONS 9308230035 930823 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE SLUGGISH MARKET FOR BIGTICKET FACTORY ITEMS COULD GET SOME HELP FROM AUTO DEALERS ORDERING 1994MODEL CARS SET TO HIT THE STREETS THIS FALL BUT ANY BOOST PROVIDED BY AUTO DEALERS PROBABLY WILL BE OFFSET BY DECLINES IN ORDERS FOR OTHER DURABLE GOODS SUCH AS AIRCRAFT SAID NANCY KIMELMAN CHIEF ECONOMIST FOR TECHNICAL DATA MS KIMELMAN SAID A COMMERCE DEPARTMENT REPORT THIS WEEK WILL LIKELY SHOW DURABLEGOODS ORDERS FELL 1 IN JULY WHICH WOULD MARK THE FOURTH DECLINE IN FIVE MONTHS WE'RE EXPECTING A SLIGHT INCREASE IN ORDERS FOR CARS WITH THE NEW MODELS COMING OUT SHE SAID EVERYTHING ELSE WILL BE FAIRLY STAGNANT ORDERS FOR AIRCRAFT SUBJECT TO WILD SWINGS FROM MONTH TO MONTH PROBABLY FELL IN JULY AFTER CLIMBING 15 IN JUNE MS KIMELMAN SAID THE COMMERCE DEPARTMENT REPORT ALSO WILL BE CLOSELY WATCHED FOR AN ACCOUNTING OF UNFILLED ORDERS SHE SAID THE BACKLOG OF ORDERS HAS BEEN FALLING IN RECENT MONTHS INDICATING THAT THE CURRENT FACTORY WORK FORCE IS HAVING LITTLE DIFFICULTY KEEPING UP WITH THE FLOW OF NEW ORDERS THAT IN TURN IS A BAD SIGN FOR BLUECOLLAR EMPLOYMENT BECAUSE IF THERE IS LESS WORK TO BE DONE FEWER WORKERS ARE NEEDED 9308230034 930823 BUSINESS BRIEF AIRBORNE FREIGHT CORP IBM AWARDS FIRM CONTRACT FOR AIRFREIGHT SHIPMENTS AIRBORNE FREIGHT CORP SEATTLE SAID IT WAS AWARDED A CONTRACT BY INTERNATIONAL BUSINESS MACHINES CORP TO HANDLE AIRFREIGHT SHIPMENTS INTO NEW MARKETS THAT WILL DOUBLE THE DELIVERY COMPANY'S BUSINESS WITH IBM AIRBORNE CURRENTLY HANDLES IBM'S AIRFREIGHT INTO EUROPE THE MIDDLE EAST AND AFRICA THE NEW DEAL CALLS FOR AIRBORNE TO HANDLE DELIVERIES INTO THE ASIA PACIFIC REGION AS WELL AND TO HANDLE OCEAN SHIPMENTS TO ALL OF THE REGIONS THE CONTRACT IS EXPECTED TO BRING AIRBORNE TENS OF MILLIONS OF DOLLARS OF ADDITIONAL BUSINESS ANNUALLY AN AIRBORNE SPOKESWOMAN SAID 9308230033 930823 BUSINESS BRIEF GREAT BAY POWER CORP UTILITY MOVES A STEP CLOSER TO REORGANIZATION APPROVAL CLEARING A HURDLE TOWARD EMERGING FROM BANKRUPTCY COURT PROTECTION THE US NUCLEAR REGULATORY COMMISSION APPROVED A TRANSFER OF OWNERSHIP OF GREAT BAY POWER CORP BOSTON TO ITS BONDHOLDERS THE BONDHOLDERS' COMMITTEE SAID GREAT BAY FORMERLY THE EUA POWER CORP UNIT OF EASTERN UTILITIES ASSOCIATES OWNS A 12 INTEREST IN THE SEABROOK NUCLEAR POWER STATION IN NEW HAMPSHIRE GREAT BAY'S PLAN OF REORGANIZATION WAS CONFIRMED BY THE COURT ON MARCH 5 BUT THE PLAN WAS MADE CONTINGENT ON THE NRC AND FEDERAL AND STATE REGULATORS' APPROVAL WHICH IS STILL PENDING THE PLAN ALSO AWAITS A PENDING 45 MILLION FINANCING FACILITY 9308230032 930823 BUSINESS BRIEF SALEM SPORTSWEAR CORP STOCK SLUMPS 32 AS PROFIT IS SEEN BELOW EXPECTATIONS SALEM SPORTSWEAR CORP HUDSON NH SAID EARNINGS FOR ITS FISCAL FOURTH QUARTER AND YEAR WILL BE SIGNIFICANTLY BELOW INTERNAL EXPECTATIONS BECAUSE OF DELIVERY AND PRODUCTION PROBLEMS THAT CUT SALES IN OVERTHECOUNTER TRADING FRIDAY SALEM STOCK SLUMPED 3 OR 32 TO 625 THE COMPANY FORECAST A NET LOSS FOR THE FISCAL FOURTH QUARTER OF AS MUCH AS 15 CENTS A SHARE INCLUDING A PRETAX CHARGE FOR RESTRUCTURING COSTS OF 45 MILLION IN THE QUARTER ENDED AUG 31 1992 SALEM HAD PROFIT OF 32 MILLION OR 32 CENTS A SHARE ON SALES OF 387 MILLION AS PART OF THE RESTRUCTURING SALEM SAID IT PLANNED TO CUT BACK ON SEVERAL MINOR LINES TO FOCUS ON ITS CORE PRODUCTS 9308230031 930823 INTERNATIONAL BRIEF PIONEER ELECTRONIC CORP AUDIOVISUAL PRODUCTS FIRM SEES PRETAX PROFIT DECLINE PIONEER ELECTRONIC CORP TOKYO A MAJOR AUDIOVISUAL EQUIPMENT MAKER SAID ITS CONSOLIDATED PRETAX PROFIT PLUNGED 59 DURING ITS FISCAL FIRST QUARTER FROM THE YEAR EARLIER HIT BY WEAK SALES IN JAPAN AND EUROPE AND THE APPRECIATION OF THE YEN PIONEER SAID THE RISE IN ITS PROFIT FOR THE QUARTER ENDED JUNE 30 WAS DUE TO AN ACCOUNTING CHANGE FROM APRIL 1 1993 WHICH RESULTED IN A 488 BILLION YEN 46 MILLION CREDIT BUT THE COMPANY'S UNDERLYING BUSINESS ENVIRONMENT PROVED EXTREMELY DIFFICULT FOR THE QUARTER BECAUSE OF WEAK AUDIO EQUIPMENT SALES IN JAPAN AND EUROPE AND THE BAD IMPACT FROM THE YEN'S SURGE WHICH SLASHED THE VALUE OF OVERSEAS EARNINGS FOR THE QUARTER PIONEER'S OPERATING PROFIT ITS EARNINGS ON ITS MAIN BUSINESS OPERATIONS PLUNGED 74 TO 219 BILLION YEN 9308230030 930823 HOUSING STORM RAGES OVER MOBILEHOME SAFETY BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL A YEAR AFTER HURRICANE ANDREW DEBATE CONTINUES OVER UPGRADING THE SAFETY OF MOBILE HOMES WHICH THE KILLER STORM FLATTENED BY THE THOUSANDS A YEAR AGO TODAY THERE WERE 1300 MOBILE HOMES IN HOMESTEAD FLA THE NEXT DAY AFTER HURRICANE ANDREW TORE THROUGH EIGHT REMAINED NOW HOMESTEAD MAYOR TAD DEMILLY ARDENTLY SUPPORTS A FEDERAL PROPOSAL TO SHARPLY INCREASE WINDSAFETY STANDARDS FOR NEW MOBILE HOMES WE HAVE TO MAKE THESE HOMES MORE SURVIVABLE HE SAYS BUT OTHERS INCLUDING BILL WILLIAMS A RETIRED MAJOR LEAGUE UMPIRE WHO OWNS A MOBILE HOME IN COCONUT GROVE FLA ARE CRYING FOUL MR WILLIAMS ARGUES THAT THE PROPOSAL COULD PUT THE PRICES FOR NEW MOBILE HOMES OUT OF REACH FOR MANY OLDER PEOPLE AND FIRSTHOME BUYERS WHILE SOME STIFFENING OF WIND RULES IS JUSTIFIED THE GOVERNMENT'S PROPOSAL IS OUT OF THIS WORLD SAYS MR WILLIAMS WHO IS PRESIDENT OF THE 220000MEMBER FEDERATION OF MOBILE HOME OWNERS OF FLORIDA INC THE BATTLE OVER WIND RULES IS CREATING A KNOTTY PROBLEM FOR FEDERAL REGULATORS WHO WOULD LIKE TO RESOLVE THE ISSUE SOON AND IT HAS DASHED THE HOPES OF THOSE WHO HAD HOPED THAT TOUGHER STANDARDS WOULD BE IN PLACE BEFORE THE CURRENT HURRICANE SEASON BEGAN JUNE 1 FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHICH PROPOSED THE RULE THE ISSUE REQUIRES THE CLASSIC BALANCING ACT SAYS NICOLAS RETSINAS ASSISTANT SECRETARY FOR HOUSING WE COULD MAKE THESE HOMES COMPLETELY SAFE AND SOLID SO MUCH SO THAT THEY'D BE OUT OF REACH FOR LOWERINCOME CONSUMERS HUD SECRETARY HENRY CISNEROS SAYS THAT IN DECIDING THE ISSUE HE'LL CONSIDER THE INCREASED COST OF ANY CHANGES AS WELL AS THE IMPROVED SAFETY AND DURABILITY CONSTRUCTION STANDARDS FOR MOBILE HOMES ALSO KNOWN AS MANUFACTURED HOUSING HAVEN'T BEEN UPGRADED IN MORE THAN 15 YEARS AND EVEN MANY INDUSTRY OFFICIALS BELIEVE THEY ARE OUTDATED THE CURRENT WIND RULES DIVIDE THE COUNTRY INTO TWO ZONES AND ROUGHLY SPEAKING REQUIRE THAT NEWLY BUILT MOBILE HOMES BE ABLE TO WITHSTAND WINDS OF UP TO 60 MILES PER HOUR OR 90 MPH DEPENDING ON LOCATION A REPORT BY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY PUT HURRICANE ANDREW'S WIND SPEEDS AT 95 MPH TO 135 MPH WHERE MOST OF THE MOBILE HOMES WERE CONCENTRATED THE REGULATION PROPOSED BY HUD IN APRIL WOULD CREATE THREE WIND ZONES AND REQUIRE THAT MOBILE HOMES BE ABLE TO WITHSTAND MAXIMUM WIND SPEEDS OF 80 100 AND 110 MPH THE TOUGHEST RULES WOULD APPLY TO SOUTHERN FLORIDA ALASKA AND HAWAII LESS STRINGENT ONES WOULD GO INTO EFFECT FOR THE REST OF FLORIDA AND MUCH OF THE GULF AND ATLANTIC COASTS THE LEAST RESTRICTIVE REQUIREMENTS WOULD AFFECT THE REST OF THE COUNTRY THE HUD RULE IS PATTERNED AFTER A STANDARD PREVIOUSLY DEVELOPED UNDER THE AEGIS OF THE AMERICAN SOCIETY OF CIVIL ENGINEERS A NATIONAL ENGINEERING SOCIETY WHOSE OFFICIALS SAY IT WOULD BRING MOBILEHOME WIND REQUIREMENTS INTO LINE WITH THOSE OF CONVENTIONAL HOUSING INDUSTRY GROUPS DISPUTE THAT CONTENDING THAT IT WOULD SUBMIT MOBILE HOMES TO A HIGHER STANDARD THAN CONVENTIONAL HOUSING SINCE MIDAPRIL HUD HAS GOTTEN MORE THAN 1000 LETTERS ENOUGH TO FILL 15 BINDERS MOSTLY FROM MOBILEHOME MANUFACTURERS AND HOMEOWNERS PROTESTING THE PLANNED RULE DOZENS OF MEMBERS OF CONGRESS HAVE WRITTEN TO THE AGENCY ASKING OFFICIALS ABOUT CONSTITUENTS' CONCERNS HUD IS UNDER INTENSE POLITICAL PRESSURE TO WATER THIS DOWN SAYS EDWARD PFRANG EXECUTIVE DIRECTOR OF THE CIVIL ENGINEERS' SOCIETY MUCH OF THE FUROR IS OVER COST THE MANUFACTURED HOUSING INSTITUTE A TRADE GROUP REPRESENTING MANUFACTURERS SUPPLIERS AND DEVELOPERS SAYS THE NEW RULE WOULD ADD AS MUCH AS 10000 TO MOBILEHOME PRICE TAGS IN AREAS WITH THE TIGHTEST RULES AVERAGE PRICES RUN ABOUT 20600 FOR A SINGLESECTION HOME AND 37200 FOR A MULTISECTION HOME THE GROUP SAYS THIS IS TOTAL OVERKILL COMPLAINS DANNY GHORBANI PRESIDENT OF THE ASSOCIATION FOR REGULATORY REFORM ANOTHER INDUSTRY GROUP YOU MIGHT HAVE A HURRICANE LIKE ANDREW ONCE EVERY 60 OR 70 YEARS BUT OTHERS SAY THE INDUSTRY'S COST FIGURES ARE INFLATED ONCE TOUGHER STANDARDS ARE ADOPTED SAYS MR PFRANG THE INDUSTRY WILL COMPETE ON PRICE AND MOBILEHOME OWNERS THEMSELVES AREN'T UNITED IN OPPOSITION TO STRONG REQUIREMENTS WILLIAM COLLISON OF NORTH FORT MYERS FLA SAYS THE STRONGER THEY CAN MAKE IT THE BETTER HE SAYS THE STAKES ARE HIGH FOR THE INDUSTRY AND CONSUMERS MOBILE HOMES PROVIDE A SUBSTANTIAL SHARE OF LOWERCOST HOUSING ACCOUNTING FOR MORE THAN ONEFIFTH OF THE HOUSING STARTS LAST YEAR ACCORDING TO HUD IN 1992 ALMOST 211000 MOBILE HOMES WERE SOLD AND 250000 ARE EXPECTED TO BE SOLD THIS YEAR ACCORDING TO THE MANUFACTURED HOUSING INSTITUTE THE DEBATE OVER WIND STANDARDS BEGAN IMMEDIATELY AFTER HURRICANE ANDREW CARVED ITS PATH OF DESTRUCTION THROUGH FLORIDA AND LOUISIANA LAST AUGUST EVEN DAMAGE ESTIMATES ARE IN DISPUTE HUD INITIALLY SAID AS MANY AS 18000 MOBILE HOMES WERE DESTROYED OR SEVERELY DAMAGED BUT IT HAS SINCE REDUCED THAT FIGURE TO ABOUT 8400 THE INDUSTRY SAYS IT WAS CLOSER TO 5000 HOMES THE DESTRUCTION WENT WAY BEYOND MOBILE HOMES OF COURSE WITH DAMAGE ESTIMATED IN THE TENS OF BILLIONS OF DOLLARS FOR ALL KINDS OF BUILDINGS LAST SEPTEMBER THEN HUD SECRETARY JACK KEMP ORDERED A FULLSCALE REVIEW OF THE DEPARTMENT'S MOBILEHOME STANDARDS IN NOVEMBER THE MANUFACTURED HOUSING INSTITUTE URGED HUD TO UPGRADE THE WIND RULES BY BRINGING THE MOBILEHOME REQUIREMENTS ROUGHLY INTO LINE WITH THE STANDARD BUILDING CODE WHICH IS TIGHTER THAN THE CURRENT STANDARD BUT MR KEMP SIGNALED HIS PREFERENCE FOR A MORE STRINGENT PROPOSAL THAT'S SIMILAR TO THE ONE THE CLINTON ADMINISTRATION PROPOSED IN APRIL MUCH OF THE LATEST UPROAR IS OVER A DRAFT STUDY BY HUD INDICATING THAT THE COSTS OF THE PROPOSED RULE OUTWEIGH THE BENEFITS BY A RATIO OF 6 TO 1 BUT WHEN PRESSED BY THE CONSUMER REPRESENTATIVES OF THE DEPARTMENT'S ADVISORY COMMITTEE ON MOBILE HOMES HUD OFFICIALS CONCEDED THAT THE COST FIGURES WERE BASED ON INDUSTRY ESTIMATES OF INCREASED PRODUCTION COSTS MOREOVER THE FIGURES DIDN'T INCLUDE SUCH BENEFITS AS AVOIDANCE OF LOSS OF LIFE OR DISPLACEMENT OF FAMILIES BECAUSE THE OFFICIALS DIDN'T KNOW HOW TO QUANTIFY THEM THE ADVISORY COUNCIL UNANIMOUSLY URGED HUD TO GO BACK AND SCRUTINIZE THE PROPOSED WIND RULE AND HUD OFFICIALS ARE REVIEWING WHETHER CHANGES ARE NEEDED THE STATE OF THE STANDARD AT THE TIME OF THE HURRICANE WAS SCANDALOUS SAYS MICHELLE MEIER COUNSEL FOR GOVERNMENT AFFAIRS AT CONSUMERS UNION THE PUBLISHER OF CONSUMER REPORTS AND NOW THERE'S BEEN ADDITIONAL BUNGLING BY HUD SHE WANTS THE COSTBENEFIT ANALYSIS REDONE BUT THE INDUSTRY SAYS THE ANALYSIS VINDICATES ITS POSITION THE DECISION IS EXTREMELY GRATIFYING SAYS MR GHORBANI REGARDLESS OF HOW THE WIND ISSUE TURNS OUT MR WILLIAMS OF THE HOMEOWNERS' GROUP SAYS THE MOBILEHOME COMMUNITY IN FLORIDA WILL REBUILD WE'RE HERE TO STAY HE SAYS 9308230029 930823 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BETHLEHEM STEEL CORP AN OFFERING OF 105 MILLION OF SENIOR NOTES DUE 2003 VIA SALOMON BROTHERS INC FRIEDMAN'S INC AN INITIAL OFFERING OF 33 MILLION CLASS A COMMON SHARES VIA KIDDER PEABODY & CO MORGAN KEEGAN & CO AND MORGAN SCHIFF & CO FRONTIER INSURANCE GROUP INC AN OFFERING OF 132 MILLION COMMON SHARES VIA BEAR STEARNS & CO AND SMITH BARNEY SHEARSON INC 9308230028 930823 BUSINESS BRIEF ALCATEL BELL NV INTEREST IN TURKISH COMPANY IS BOOSTED TO MAJORITY STAKE BELGIANBASED ALCATEL BELL NV SAID IT ACQUIRED A MAJORITY STAKE IN TURKISH TELECOMMUNICATIONS CONCERN TELETAS IN A STATEMENT IN BRUSSELS ALCATEL BELL SAID ITS AFFILIATE ALCALTEL HOLDING NV HAD ACQUIRED 26 OF TELETAS SHARES FROM THE TURKISH PUBLIC PARTICIPATION ADMINISTRATION ADDING TO THE 39 STAKE ALCATEL BELL ALREADY HELD TERMS WEREN'T DISCLOSED ALCATEL BELL SAID TELETAS WAS SOLD AS PART OF THE TURKISH GOVERNMENT'S PRIVATIZATION PROGRAM THE PURCHASE FITS IN WITH ALCATEL BELL AND ALCATEL HOLDING STRATEGIES TO INCREASE THEIR PRESENCE IN TURKEY EASTERN EUROPE AND THE MIDEAST TELETAS EMPLOYS 1600 PEOPLE ALCATEL BELL SAID 9308230027 930823 BUSINESS BRIEF NESTLE SA CANADIAN UNIT WITHDRAWS SMARTIES CANDY FROM STORES THE CANADIAN SUBSIDIARY OF NESTLE SA OF SWITZERLAND SAID IT WITHDREW ITS SMARTIES CANDY FROM STORES ACROSS CANADA AFTER TWO CONSUMERS COMPLAINED TO A GOVERNMENT AGENCY ABOUT AN UNUSUAL TASTE AND A SLIGHT IRRITATION OF THE MOUTH A SPOKESWOMAN FOR NESTLE CANADA INC IN TORONTO SAID TESTS FOUND TRACE AMOUNTS OF HYDROCARBONS IN SOME RANDOM SAMPLES OF RECENTLY PRODUCED SMARTIES SHE SAID THE COMPANY WAS TRYING TO FURTHER IDENTIFY THE TRACES SHE SAID THE TESTS REVEALED NO SERIOUS HEALTH RISKS NESTLE DOESN'T SELL SMARTIES IN THE US THE CANDY ACCOUNTS FOR ABOUT 25 MILLION CANADIAN DOLLARS US19 MILLION OF ITS ANNUAL CANADIAN SALES WHICH THE SPOKESWOMAN SAID EXCEED C1 BILLION 9308230026 930823 BUSINESS BRIEF AMERITECH CORP MANAGEMENT LAYOFFS TO CUT BETWEEN 1200 AND 1500 JOBS AMERITECH CORP SAID IT WILL ELIMINATE 1200 TO 1500 MANAGEMENT POSITIONS BY THE END OF 1993 AS THE FINAL STEP IN A RESTRUCTURING PLAN BEGUN THIS YEAR FOR EXPECTED ANNUAL SAVINGS OF ABOUT 100 MILLION BEGINNING NEXT YEAR ABOUT 800 OF THE JOB CUTS WOULD OCCUR BY MIDSEPTEMBER WITH THE BULK OF LAYOFFS RELATING TO ITS TELEPHONE OPERATIONS THE COMPANY CURRENTLY HAS ABOUT 69500 EMPLOYEES OF WHICH 19000 ARE IN MANAGEMENT POSITIONS THE LAYOFFS FOLLOW A PLAN ANNOUNCED BY THE CHICAGO COMPANY IN FEBRUARY TO RESTRUCTURE INTO 12 UNITS OF THESE 11 WILL FOCUS ON SPECIFIC GROUPS OF CUSTOMERS SUCH AS RESIDENTIAL CUSTOMERS SMALL BUSINESSES LONGDISTANCE COMPANIES AND LARGE CORPORATIONS WHILE THE REMAINING UNIT WILL RUN THE LOCAL PHONE NETWORK AMERITECH IN A SIMILAR INITIATIVE LAST YEAR ELIMINATED 3500 MANAGEMENT POSITIONS BETWEEN AUGUST 1992 AND MARCH 1993 THE COMPANY SAID ITS LATEST JOB CUTS WON'T AFFECT 1993 EARNINGS 9308230025 930823 BUSINESS BRIEF AMREP CORP REALESTATE CONCERN TO PAY 350000 IN FTC SETTLEMENT AMREP CORP NEW YORK SAID IT SETTLED A FEDERAL TRADE COMMISSION COMPLAINT THAT IT USED FALSE AND MISLEADING CLAIMS TO SELL LAND IN NEW MEXICO IN THE 1970S THE REALESTATE DEVELOPER AND MAGAZINE DISTRIBUTOR AGREED TO PAY 350000 TO THE FTC OVER THE NEXT FOUR QUARTERS BEGINNING WITH THE CURRENT SECOND FISCAL QUARTER ENDING IN OCTOBER THE COMPANY SAID IT ACCRUED THE SETTLEMENT AMOUNT IN LAST YEAR'S FINANCIAL REPORTS AND THAT THERE WOULD BE NO EFFECT ON THIS FISCAL YEAR'S RESULTS AMREP CALLED THE RESOLUTION REASONABLE IN VIEW OF THE CLAIMS AND LITIGATION COSTS AN FTC SPOKESMAN SAID THE SETTLEMENT WILL BE USED TO COMPENSATE CONSUMERS WHO WERE TOLD THAT LAND THEY BOUGHT AT RIO RANCHO ESTATES WOULD APPRECIATE 15 YEARLY IN VALUE RICHARD DONOHUE AN FTC ATTORNEY SAID BUYERS WERE UNABLE TO RECOUP THEIR INITIAL INVESTMENTS BECAUSE THE PROPERTY WAS OVERPRICED THE FTC FILED THE SUIT AGAINST AMREP ADMINISTRATIVELY IN 1975 THE SETTLEMENT EVOLVES FROM LEGAL ACTION BY THE FTC IN 1987 MR DONOHUE SAID 9308230024 930823 BUSINESS BRIEF PREMIER ANESTHESIA INC SHAREHOLDER SUES COMPANY ALLEGING MISREPRESENTATION A PREMIER ANESTHESIA INC SHAREHOLDER SUED THE COMPANY ALLEGING IT MISREPRESENTED THE STRENGTH OF ITS BUSINESS GROWTH POTENTIAL AND EXPANSION PLANS WHEN IT WENT PUBLIC LAST YEAR DAVID BOURNE OF SAN DIEGO OWNER OF 8000 PREMIER SHARES FILED THE SUIT IN US DISTRICT COURT IN LOS ANGELES THE SUIT WHICH SEEKS CLASSACTION STATUS ASKS FOR UNSPECIFIED COMPENSATORY DAMAGES ALSO NAMED AS DEFENDANTS IN THE SUIT ARE HAMBRECHT & QUIST AND WHEAT FIRST SECURITIES INC THE UNDERWRITERS FOR THE PREMIER OFFERING HEALTHCARE INVESTMENT CORP HEALTHCARE VENTURES II AND THE EVEREST TRUST JOSEPH G BLESER PREMIER'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE PROVIDER OF CONTRACT ANESTHESIA AND PAIN MANAGEMENT SERVICES HAS MERITORIOUS DEFENSES TO MR BOURNE'S CLAIMS AND INTENDS TO VIGOROUSLY DEFEND THE ACTION 9308230023 930823 BUSINESS BRIEF GENTRA INC FINANCIAL SERVICES CONCERN RAISES CASH IN SALE OF ASSETS GENTRA INC OF TORONTO SAID IT RAISED 105 MILLION CANADIAN DOLLARS US799 MILLION FROM THE SALE OF RESIDENTIAL MORTGAGE ASSETS IN BRITAIN THE SALE GIVES THE TROUBLED FINANCIAL SERVICES CONCERN THE CASH IT NEEDS TO COMPLETE A PREVIOUSLY AGREED UPON TRANSACTION WITH ROYAL BANK OF CANADA ROYAL BANK HAS AGREED TO PURCHASE VIRTUALLY ALL OF GENTRA'S OPERATING ASSETS FOR ABOUT C166 BILLION US126 BILLION AS PART OF THE DEAL GENTRA PREVIOUSLY NAMED ROYAL TRUSTCO LTD ALSO AGREED TO BUY BACK CERTAIN ASSETS FROM THE BANK GENTRA SOLD THE MORTGAGE ASSETS TO FUND THE REPURCHASE LAST MONTH THE COMPANY SOLD ANOTHER C305 MILLION OF BRITISH MORTGAGES GENTRA SAID THE LATEST SALE OF MORTGAGES WAS TO THE NEW JERSEY SUBSIDIARY OF KLEINWORT BENSON GROUP A BRITISH MERCHANT BANK GENTRA SAID THE SALE PRICE WAS CLOSE TO THE BOOK VALUE OF THE MORTGAGES 9308230022 930823 MARKETING IN A TURNABOUT FASTFOOD FARE BECOMES FATTIER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL FASTFOOD RESTAURANTS HAVE GONE OFF THEIR DIET WHILE BURGER JOINTS STILL CATER TO THE HEALTHCONSCIOUS WITH SALADS AND A FEW OTHER LEAN SELECTIONS LIKE BAKED POTATOES THEIR MENUS ARE INCREASINGLY FILLED WITH GREASELADEN SANDWICHES THE NEWEST FAT KID ON THE BLOCK IS THE BIG BACON CLASSIC A PRODUCT OF WENDY'S INTERNATIONAL INC THE QUARTERPOUND BEEF PATTY TOPPED WITH THREE SLICES OF BACON A SLICE OF CHEESE AND A DOLLOP OF MAYONNAISE JOINED THE PERMANENT MENU AT WENDY'S THIS MONTH AFTER BEING OFFERED OCCASIONALLY WEIGHING IN AT ABOUT 700 CALORIES THE BIG BACON CLASSIC JOINS AN EXPANDING CUPBOARD OF FASTFOOD PRODUCTS THAT EMPHASIZE SIZE THE BIGGER THE BETTER AND RICH FLAVOR ANOTHER NEW ARRIVAL IN THE BIG LEAGUES IS THE MEGA MAC A HALFPOUND BURGER THAT IS A LARGER VERSION OF THE BIG MAC WHICH IS AVAILABLE AT MCDONALD'S IN WASHINGTON DC AND BALTIMORE ALSO DOING BRISK BUSINESS IS FRIED CHICKEN MCDONALD'S CORP IS TESTING FRIED CHICKEN IN A NUMBER OF MARKETS SALES OF HARDEE'S FRIED CHICKEN HAVE BEEN BRISK WENDY'S SELLS MORE BATTERCOVERED FRIED CHICKEN FILLETS THAN GRILLED FILLETS AND PEPSICO INC'S KFC SAYS IT HAD SO MUCH SUCCESS WITH LAST YEAR'S LIMITED RUN OF POPCORN CHICKENBATTERED DEEPFRIED CHICKEN STRIPS THAT IT STAGED A SEQUEL POPCORN II THIS SUMMER IN THE CUTTHROAT PIZZA INDUSTRY THE PITCH IS BIGGER PIES FOR LESS MONEY LITTLE CAESAR'S ENTERPRISES INC HAS A BIG BIG CHEESE PIZZA TOPPED WITH CHEESE MADE FROM 100 WHOLE MILK ITS REGULAR PIZZAS USE SKIMMILK CHEESE PEPSICO'S PIZZA HUT HAS INTRODUCED THE BIGFOOT PIZZA WHICH IS 25 LARGER THAN TWO MEDIUMS COMBINED AND DOMINO'S PIZZA INC RECENTLY LAUNCHED THE DOMINATOR A 10INCH BY 30INCH RECTANGULAR BEHEMOTH OF A PIZZA THAT IS FAR BIGGER THAN A REGULAR LARGE PIZZA PIZZA KEEPS GETTING LARGER SOON YOU'RE NOT GOING TO BE ABLE TO LIFT IT SAYS RON PAUL PRESIDENT OF TECHNOMIC INC A FOOD CONSULTING CONCERN INDEED THE FASTFOOD INDUSTRY HASN'T HAD MUCH LUCK WITH SKIMPY DIETETIC PRODUCTS HARDEE'S EXPERIMENTED WITH A LOWFAT BURGER CALLED LEAN ONE BUT IT WAS REJECTED BY THE CONSUMER AND THE CHAIN PULLED IT FROM THE MENU SAYS A HARDEE'S FOOD SYSTEMS INC SPOKESMAN MCDONALD'S REDUCEDFAT MCLEAN DELUXE BURGER WASN'T THE WINNER THE CHAIN HOPED IT WOULD BE KFC MEANWHILE FAILED WITH SKINFREE CRISPY SKINLESS CHICKEN COOKED WITH THE CHAIN'S PRESSUREFRYING METHOD BY THE END OF THE YEAR SKINFREE CRISPY WHICH WAS ONCE IN TWOTHIRDS OF KFC'S 5089 RESTAURANTS WILL BE IN LESS THAN 5 THE REASON FOR THESE FLOPS PEOPLE CRAVE LARGE QUANTITIES OF FATTY FAST FOODS KARL BALL A MARKETING DIRECTOR AND FATHER OF THREE WHO LIVES IN CINCINNATI IS UPFRONT ABOUT HIS FASTFOOD HABIT FAT TASTES GOOD I KNOW IT'S NOT GOOD FOR ME BUT I FALL PREY TO ALL THE PROMOTIONS SAYS THE 33YEAROLD MR BALL LETS HIMSELF INDULGE IN FATTENING FASTFOOD TREATS DURING LUNCH AND WHEN HE TRAVELS ON BUSINESS FOR SOME REASON THE STOMACH KNOWS NO BOUNDS OVER THE MEAL HOUR AFTER EATING IT I REPENT FOR A FEW MINUTES BUT THEN I REMEMBER HOW GOOD IT TASTED HE SAYS EXPERTS ON FOOD TRENDS SAY AMERICANS ARE SICK AND TIRED OF THE STERN DIETARY WARNINGS ISSUED THE PAST FEW YEARS BY PHYSICIANS AND DIETITIANS REBELLIOUS CONSUMERS WANT THEIR FOOD INDULGENCES TO BE AS RICH AND SAVORY AS POSSIBLE MOREOVER THEY WANT MYRIAD OPTIONS WHEN THEY GO OUT FOR FAST FOOD IF THEY FEEL LIKE SPLURGING THEY WANT THEIR FAVORITE RESTAURANT TO OFFER FATTENING TREATS BUT IF THEY FEEL LIKE DIETING THEY WANT TO BE ABLE TO BUY A SALAD WITH LOWCAL DRESSING THEY WANT IT WHEN THEY WANT IT SAYS TRACY DUCKWORTH A FOOD CONSULTANT IN CINCINNATI SAYS A WENDY'S SPOKESMAN THE CONSUMER WANTS IT ALL THEY WANT US TO OFFER TASTE FLAVOR AND FILLING FOODS AND TO TAKE OUT THE FAT CALORIES AND CHOLESTEROL THAT'S A CHALLENGE WENDY'S HAS BEEN A LEADER IN THE FASTFOOD INDUSTRY'S BIGGERISBETTER TREND SAYS MICHAEL MUELLER AN ANALYST WITH MONTGOMERY SECURITIES ITS OCCASIONAL SPECIALTY SANDWICHES PILED WITH CHEESES BACON AND RICH DRESSINGS HAVE INSPIRED KNOCKOFFS AT MCDONALD'S AND HARDEE'S AND WENDY'S KEEPS ON CHURNING OUT BIG RICH SANDWICHES INDEED ITS BIGGESTEVER SANDWICH LAUNCH WAS THE SPRING INTRODUCTION OF ITS MONTEREY RANCH CHICKEN SANDWICH A FRIED CHICKEN FILLET TOPPED WITH MONTEREY CHEESE AND RANCH DRESSING OTHER FASTFOOD CHAINS HAVE BEEN INSPIRED BY THE POPULARITY AND HIGHER MARGINS OF SPECIALTY SANDWICHES WHICH TEND TO BE LARGER AND MORE EXPENSIVE THAN REGULAR BURGERS MCDONALD'S IS TESTING MCGRILLED CHICKEN A MARINATED CHICKEN BREAST ON A ROLL COVERED WITH MONTEREY JACK CHEESE AND A SPECIAL HERB SAUCE THE CHAIN ALREADY SELLS A FRIEDCHICKEN SANDWICH HARDEE'S LINE OF FRISCO SANDWICHES COMBINES THICK SOURDOUGH BREAD AND CHEESESWATHED MEATS TOPPED WITH MAYONNAISE THE FRISCO BURGER FOR EXAMPLE IS A QUARTERPOUND BEEF PATTY TOPPED WITH MELTED SWISS MAYONNAISE AND TWO SLICES OF BACON ON SOURDOUGH ONE OF ITS FRISCO BREAKFAST SANDWICHES COMBINES SAUSAGE CHEESE AND EGGS PEOPLE WANT REAL FOOD SAYS THE HARDEE'S SPOKESMAN YES WE HAVE HEALTHY ALTERNATIVES ON THE MENU BUT THE CORE CUSTOMER BASE IS LOOKING FOR BISCUITS MADE FROM SCRATCH STILL FASTFOOD RESTAURANTS HAVEN'T FORGOTTEN THAT TODAY'S GLUTTON IS TOMORROW'S DIETER WENDY'S FOR EXAMPLE CONTINUES TO TRY OUT HEALTHFUL ENTREES IT IS CURRENTLY TESTING A SALAD COMPOSED OF CHEESEFILLED TORTELLINI PASTA AND VEGETABLES AND RECENTLY INTRODUCED A FATFREE DRESSING FOR ITS READYTOEAT SALADS MR BALL THE FASTFOOD FAN IN CINCINNATI SAYS HE SOMETIMES TRIES TO EASE HIS GUILT BY CHOOSING CHICKEN SANDWICHES I FIGURE SINCE THE BASIS OF THE SANDWICH IS CHICKEN IT MUST BE GOOD FOR ME BUT CLOSER INSPECTION REVEALS HIDDEN CALORIES IN CHEESE TOPPINGS AND MAYONNAISEBASED DRESSINGS NEVER MIND THAT MR BALL SAYS THE SAUCES ARE FABULOUS AT THESE PLACES THEY APPEAL TO THAT DEEP DESIRE TO GIVE YOURSELF RICH FOOD THEY'RE THE MODERN EQUIVALENT OF BISCUITS AND GRAVY THE CHEESE USED ON ALL LITTLE CAESARS PIZZAS IS PARTLY MADE FROM SKIM MILK IN AN ARTICLE MONDAY ABOUT THE FAT CONTENT OF FAST FOOD IT WAS INCORRECTLY REPORTED THAT SOME PIZZAS MADE BY LITTLE CAESAR ENTERPRISES INC CONTAIN CHEESE MADE FROM 100 WHOLE MILK 9308230021 930823 INTERNATIONAL GM VW URGED TO SETTLE FIGHT VIA CIVIL LAW LOPEZ CASE SHOULD SHIFT FROM CRIMINAL PROBE SAYS GERMAN MINISTER BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN ADDING A POLITICAL DIMENSION TO THE STORMY DISPUTE BETWEEN GENERAL MOTORS CORP AND VOLKSWAGEN AG GERMANY'S ECONOMICS MINISTER SUGGESTED THE TWO CAR GIANTS SHOULD SETTLE THEIR DIFFERENCES THROUGH CIVIL LAW GUENTER REXRODT MET FRIDAY WITH VW CHAIRMAN FERDINAND PIECH AND SUPERVISORY BOARD CHIEF KLAUS LIESEN TO DISCUSS THE WIDENING CONTROVERSY SURROUNDING FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA GM ALLEGES MR LOPEZ STOLE DOCUMENTS WHEN HE JUMPED TO VW IN MARCH AFTER THE PRIVATE SESSION WITH VW MR REXRODT TOLD REPORTERS HE WAS OPTIMISTIC HE COULD TONE DOWN THE WAR OF WORDS BETWEEN THE TWO COMPANIES HE ALSO SAID HE WANTED TO SEE THE CASE SHIFTED FROM A CRIMINAL INVESTIGATION TO A CIVIL CASE THIS WOULD LOWER THE PROFILE OF THE DISPUTE SINCE IT WOULD NO LONGER INVOLVE THE POTENTIAL FOR CRIMINAL CHARGES AND WOULD RELIEVE SOME OF THE PRESSURE ON VW TO RESOLVE THE CONFLICT WITH GM MR REXRODT'S COMMENTS UNDERSCORE GROWING POLITICAL ANXIETY IN GERMANY OVER THE CASE GERMAN OFFICIALS AND BUSINESS LEADERS WORRY THAT THE SHOVING MATCH BETWEEN THE TWO CAR COMPANIES COULD DAMAGE GERMANY'S ECONOMIC RELATIONS WITH THE US MR REXRODT SAID FRIDAY HE WANTS TO ENSURE THAT THE GERMAN AUTOMOBILE INDUSTRY IS NOT DAMAGED AND THAT NO CONFLICT ARISES BETWEEN AMERICA AND GERMANY FOR ITS PART GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG HAVE MADE IT CLEAR THEY WANT MR REXRODT TO STAY OUT OF THE FIGHT WITH VW MR REXRODT MET WITH OPEL'S CHAIRMAN DAVID HERMAN ON TUESDAY OPEL AGREED NOT TO COMMENT PUBLICLY ON THE MEETING WHICH IT CHARACTERIZED AS AN EXCHANGE OF VIEWS RATHER THAN AN ATTEMPT AT OPENING AN INDIRECT DIALOGUE WITH VW SOURCES FAMILIAR WITH THE SESSION SAY MR HERMAN FIRMLY BUT POLITELY TOLD MR REXRODT THAT THE DISPUTE IS TOO COMPLEX TO SOLVE THROUGH MEDIATION GM IS ADAMANT THAT THE CASE REMAIN A CRIMINAL INVESTIGATION PROSECUTORS NEED TO DETERMINE THE TRUTH OF THE MATTER SAID GM EXECUTIVE VICE PRESIDENT HARRY PEARCE SPEAKING AT GM'S TECHNICAL CENTER IN WARREN MICH ON FRIDAY IF IT IS DETERMINED THAT PROPRIETARY INFORMATION WAS TAKEN HE SAID CHARGES SHOULD BE FILED AND THERE SHOULD BE A TRIAL MR PEARCE ADDED THAT HIS HOPE IS THAT THE PROSECUTION COULD GO FORWARD WITHOUT POLITICAL INTERVENTION WITHIN MINUTES OF THE ECONOMICS MINISTER'S PRESS CONFERENCE ON FRIDAY OPEL ISSUED A TART ONEPAGE STATEMENT CALLING MR REXRODT'S SUGGESTIONS TO SHIFT TO A CIVIL CASE INCOMPREHENSIBLE MR REXRODT ALSO PIQUED GM BY ANNOUNCING THERE WOULD BE ANOTHER ROUND OF SEPARATE MEETINGS WITH THE TWO COMPANIES THIS WEEK MR REXRODT FAILED TO FIRST ASK FOR SUCH A MEETING WITH GM THUS CATCHING THE COMPANY BY SURPRISE JOSEPH B WHITE IN DETROIT CONTRIBUTED TO THIS ARTICLE 9308230020 930823 BUSINESS BRIEF AMERON INC CHARGES SEEN IN 4TH PERIOD PLANNED RESTRUCTURING CITED AMERON INC A MAKER OF CONCRETE AND STEEL PIPES AND PROTECTIVE COATINGS SAID IT EXPECTS TO TAKE SUBSTANTIAL CHARGES IN THE FOURTH QUARTER ENDING NOV 30 RELATED TO A PLANNED RESTRUCTURING THE COMPANY BASED IN PASADENA CALIF SAID IT IS REVIEWING ITS WORLDWIDE BUSINESSES ACTIVITIES STAFFING LEVELS AND INVESTMENTS IN AN EFFORT TO REDUCE COSTS AND IMPROVE THE QUALITY AND CONSISTENCY OF EARNINGS IT DIDN'T ELABORATE WE DON'T HAVE THE DETAILS A SPOKESMAN SAID THAT'S STILL PART OF WHAT'S UNDER REVIEW HE SAID THE REVIEW WON'T HAVE AN IMPACT ON EARNINGS FOR THE THIRD QUARTER ENDING AUG 31 FOR THE SECOND QUARTER AMERON POSTED NET INCOME OF 4 MILLION OR 104 A SHARE COMPARED WITH 28 MILLION OR 72 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 1216 MILLION FROM 117 MILLION IN FISCAL 1992 NET WAS 59 MILLION OR 153 A SHARE DOWN FROM THE PREVIOUS YEAR'S 76 MILLION OR 201 A SHARE 9308230019 930823 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS ALL INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 11 NEW LISTINGS INCLUDING 10 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING SHARES IN MUNIVEST PENNSYLVANIA INSURED FUND PLAINSBORO NJ A CLOSEDEND FUND UNDER MVP ROC COMMUNITIES INC ENGLEWOOD COLO A BUILDER AND OPERATOR OF HOME COMMUNITIES UNDER RCI TOWN & COUNTRY TRUST BALTIMORE A REAL ESTATE INVESTMENT TRUST UNDER TCT SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC NEW YORK A CLOSEDEND FUND UNDER SBG SAUL CENTERS INC CHEVY CHASE MD A REAL ESTATE INVESTMENT TRUST UNDER BFR NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET ELEKTEK INC SKOKIE ILL A MICROCOMPUTER PRODUCTS RETAILER UNDER ELEK MANUGISTICS GROUP INC ROCKVILLE MD A DEVELOPER AND SUPPORTER OF BUSINESS OPERATIONS SOFTWARE AND SERVICES UNDER MANU KURZWEIL APPLIED INTELLIGENCE INC WALTHAM MASS A DEVELOPER MARKETER AND SUPPORTER OF AUTOMATED SPEECH RECOGNITION SYSTEMS UNDER KURZ OLD LYME HOLDINGS CORP NEW YORK AN INSURANCE HOLDING COMPANY UNDER OLHC CFI PROSERVICES INC PORTLAND ORE A SUPPLIER OF SOFTWAREBASED PRODUCTS TO THE FINANCIAL SERVICES COMPANY UNDER PROI SPSS INC CHICAGO A SOFTWARE PRODUCTS CONCERN UNDER SPSS LANDRY'S SEAFOOD RESTAURANT HOUSTON AN OPERATOR OF SEAFOOD RESTAURANTS UNDER LDRY LEVEL ONE COMMUNICATIONS INC FOLSOM CALIF A TELECOMMUNICATIONS CONCERN UNDER LEVL MULTICARE COS HACKENSACK NJ A HEALTH CARE SERVICES CONCERN UNDER MLTI THOMAS GROUP INC IRVING TEXAS A MANAGEMENT SERVICES CONCERN UNDER TGIS THE COMMON SHARES AND WARRANTS OF NATIONAL GYPSUM CO DALLAS A SUPPLIER OF PRODUCTS AND SERVICES FOR THE BUILDING CONSTRUCTION AND SHELTER MARKETS BEGAN TRADING UNDER NGCOV AND NGCWV NATIONAL GYPSUM REORGANIZED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND WAS APPROVED FOR LISTING ON THE NATIONAL MARKET SYSTEM THE AMERICAN STOCK EXCHANGE BEGAN TRADING SHARES ON THE FOLLOWING INITIAL PUBLIC OFFERINGS CVD FINANCIAL CORP PASADENA CALIF A FINANCIAL SERVICE COMPANY UNDER CVL PAINEWEBBER PREMIER INTERMEDIATE TAXFREE INCOME FUND INC NEW YORK A CLOSEDEND FUND UNDER PIT THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING SHARES IN BANKERS TRUST NEW YORK CORP'S 75 CONVERTIBLE CAPITAL SECURITIES UNDER BTB THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON INTERVOICE INC TELEMATICS INTERNATIONAL INC CASINO AMERICA INC AND ZENECA GROUP PLC ADS THE CBOE ALSO BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES IN ATLANTIC RICHFIELD CO BORLAND INTERNATIONAL INC CISCO SYSTEMS INC AND INTERNATIONAL PAPER CO THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS ON TELEMATICS INTERNATIONAL INC THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON CASINO AMERICA INC 9308230018 930823 SUIT OVER WALMART'S PRICING PRACTICES GOES TO TRIAL TODAY IN ARKANSAS COURT BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL WALMART STORES INC'S PRICING PRACTICES WILL BE PUT UNDER THE MICROSCOPE TODAY AS A CIVIL SUIT FILED BY THREE INDEPENDENT PHARMACIES GOES TO TRIAL IN AN ARKANSAS STATE COURT THE THREE PHARMACIES HAVE ACCUSED THE NATION'S LARGEST RETAILER OF VIOLATING STATE LAWS AGAINST PREDATORY PRICING BY SELLING AS MANY AS 200 ITEMS RANGING FROM CREST TOOTHPASTE TO OVERTHECOUNTER DRUGS BELOW COST AT ITS SUPERCENTER STORE IN CONWAY ARK THE PLAINTIFFS ARE SEEKING A RELATIVELY MODEST 11 MILLION IN DAMAGES BUT THE CASE MAY HAVE FARREACHING IMPLICATIONS IF WALMART LOSES PLAINTIFFS' ATTORNEY MATT ADLONG SAYS THAT IF HE WINS THIS TEST OF ARKANSAS'S 1937 UNFAIR PRACTICES ACT HE HAS A LONG LIST OF CLIENTS BOTH PHARMACISTS AND OTHER SMALL RETAILERS READY TO SUE WALMART TOO ALREADY A PINE BLUFF ARK BUSINESSMAN WHO OWNS FIVE PHARMACIES HAS FILED A STATE COURT SUIT ECHOING THE ALLEGATIONS IN THE CONWAY CASE UNDER THE ARKANSAS LAW A COMPANY FOUND GUILTY OF THREE VIOLATIONS OF THE ACT MAY HAVE ITS CHARTER TO DO BUSINESS IN THE STATE REVOKED WHILE IT SEEMS UNLIKELY THE STATE WOULD DO THAT TO BENTONVILLEBASED WALMART THE LARGEST COMPANY WITHIN ITS BORDERS RETAIL ANALYSTS SAY A WIN BY THE PHARMACIES COULD HAVE A STRONG DETERRENT EFFECT AGAINST AGGRESSIVE PRICING NOT ONLY BY WALMART BUT BY OTHER LARGE RETAILERS FURTHER MR ADLONG NOTES THAT 22 OTHER STATES HAVE SOME FORM OF PREDATORY PRICING LAW AND THAT ATTORNEYS FROM 10 OF THEM HAVE CALLED TO SAY THEY ARE CONSIDERING SIMILAR SUITS AGAINST WALMART PHARMACIES IN AND OUTSIDE OF ARKANSAS ARE HELPING TO FUND THE CONWAY SUIT ACCORDING TO THE NATIONAL ASSOCIATION OF RETAIL DRUGGISTS AND WALMART COULD LOSE THE COMPANY LOST A SIMILAR CASE IN AN OKLAHOMA STATE COURT IN 1986 WHEN IT WAS FOUND TO HAVE VIOLATED A STATE LAW THAT REQUIRES RETAILERS TO SELL PRODUCTS AT LEAST 675 ABOVE COST UNLESS THE STORE IS HAVING A SALE OR MATCHING A COMPETITOR'S PRICE AFTER SPENDING AN ESTIMATED 80000 UNSUCCESSFULLY LOBBYING OKLAHOMA'S LEGISLATURE TO REPEAL THE LAW WALMART SETTLED OUT OF COURT DURING ITS APPEAL AND AGREED TO RAISE PRICES AT ALL OF ITS STORES IN THE STATE THE COMPANY MAINTAINS HOWEVER THAT IT HASN'T VIOLATED STATE LAW BECAUSE IT DIDN'T INTEND TO HURT COMPETITORS WE HAVE SOLD SOME PRODUCTS BELOW COST AS DO OTHER RETAILERS SAYS DON SHINKLE A WALMART VICE PRESIDENT NOT WITH THE INTENT OF HARMING OR DESTROYING COMPETITION BUT TO PROVIDE THE BEST POSSIBLE VALUE TO THE CUSTOMER ANTITRUST EXPERTS SAY THAT MANY STATE LAWS PROVIDE RETAILERS WITH A BETTER CHANCE OF WINNING A PREDATORY PRICING SUIT THAN THE FEDERAL LAW THEY OFTEN HAVE BROADER DEFINITIONS AND DISTINCT CAUSES OF ACTION THAT DON'T DEPEND ON THE FEDERAL PRECEDENTS SAYS CURTIS L FRISBIE JR A DALLAS ANTITRUST ATTORNEY THESE ARE VERY STRANGE STATUTES SAYS IRVING SCHER AN ATTORNEY WHO HAS REPRESENTED WALMART IN PAST ANTITRUST CASES BUT FEDERAL COURTS MR SCHER SAYS HAVE BEEN HIGHLY SKEPTICAL OF CASES CHALLENGING LOWER PRICES PARTICULARLY WHEN BROUGHT BY COMPETITORS IN JUNE THE US SUPREME COURT UPHELD LOWER COURT RULINGS TOSSING OUT A 150 MILLION JUDGMENT AGAINST BA T INDUSTRIES PLC FOR ALLEGEDLY TRYING TO DRIVE BROOKE GROUP LTD OUT OF THE GENERICCIGARETTES MARKET WITH UNFAIR PRICE CUTS WRITING FOR THE MAJORITY JUSTICE ANTHONY KENNEDY OBSERVED THAT A PLAINTIFF MUST PROVE THAT AN ALLEGED SCHEME ULTIMATELY WOULD LEAD TO HIGHER PRICES THAT WOULD COMPENSATE THE SUPPOSED PREDATOR FOR SLASHING PRICES IN THE FIRST PLACE ARKANSAS'S STATUTE FORBIDS SELLING OR ADVERTISING FOR SALE ITEMS BELOW COST FOR THE PURPOSE OF INJURING COMPETITORS AND DESTROYING COMPETITION MR ADLONG SAYS THAT DAVID GLASS WALMART'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND OTHER CORPORATE OFFICERS HAVE CONCEDED IN DEPOSITIONS THAT HAVE SINCE BEEN SEALED THAT WALMART'S STORES SELL ITEMS BELOW COST MR GLASS IS SCHEDULED TO TESTIFY THIS AFTERNOON AFTER HIS ATTEMPT TO QUASH A SUBPOENA FAILED LAST WEEK AT A MINIMUM THE TRIAL PROMISES TO PROVIDE AN UNUSUAL INSIDE LOOK AT WALMART'S OPERATIONS AND STRATEGIES FIVE SENIOR OFFICERS ARE EXPECTED TO TESTIFY AND MR ADLONG SAYS HE WILL BRING OUT NUMEROUS DEPOSITIONS TAKEN OVER THE LAST YEAR DETAILING HOW WALMART PEGS ITS PRICES IN EXCERPTS FROM DEPOSITIONS PRESENTED AT A PRELIMINARY HEARING LAST YEAR WALMART EMPLOYEES SAID THE COMPANY BASES ITS PRICES ON HOW MUCH COMPETITION IT FACES MORE COMPETITION LOWER PRICES LESS COMPETITION HIGHER PRICES THE CONWAY PHARMACISTS SUING WALMART DISMISS THAT EXPLANATION DWAYNE GOODE SAYS WALMART'S SUPERCENTER SET UP DISPLAYS DIRECTLY COMPARING PRICES WITH THOSE AT HIS AMERICAN DRUGS PHARMACY A PRACTICE HE SAYS STOPPED AFTER HE FILED HIS LAWSUIT IN LATE 1991 MR GOODE SAYS HE HAS PURCHASED GOODS SUCH AS TENNIS BALLS AT WALMART'S STORES THEN TURNED AROUND AND RESOLD THEM BECAUSE THE PRICES WERE LOWER THAN HE COULD GET FROM A WHOLESALER INDEPENDENT RETAILERS IN SMALL TOWNS ACROSS THE COUNTRY HAVE LONG ACCUSED WALMART OF SELLING GOODS BELOW COST TO DRIVE THEM OUT OF BUSINESS THEN BOOSTING PRICES AFTER IT HAS SEIZED CONTROL OF THE LOCAL MARKET WALMART'S SHEER SIZE MORE THAN 2300 STORES AND WAREHOUSE CLUBS GIVES IT THE LEVERAGE TO DEMAND GOODS AT THE LOWEST POSSIBLE COST FROM SUPPLIERS AND THE COMPANY FACING INCREASED COMPETITION FROM OTHER LARGE RETAILERS AS IT MOVES INTO URBAN AREAS HAS MOVED AGGRESSIVELY TO TRIM AS MUCH COST AS POSSIBLE IN 1991 FOR EXAMPLE THE RETAILER TOLD MAJOR SUPPLIERS IT WOULD DEAL WITH THEM DIRECTLY CUTTING OUT INDEPENDENT SALES REPRESENTATIVES A MANUFACTURERS GROUP THEN FILED AN UNFAIR TRADE PRACTICES COMPLAINT WITH THE FEDERAL TRADE COMMISSION WHICH IS STILL PENDING 9308230017 930823 WHO'S NEWS WEISS QUITS THINKING MACHINES POSTS HERALDING A TOP MANAGEMENT SHAKEUP BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS HARVEY L WEISS STEPPED ASIDE AS PRESIDENT AND CHIEF OPERATING OFFICER AT THINKING MACHINES CORP HERALDING A SHAKEUP OF SENIOR MANAGEMENT AT THE PIONEERING SUPERCOMPUTER MAKER INSIDERS SAID THE COMPANY'S BOARD HAS HIRED A NEW PRESIDENT TO PUSH THINKING MACHINES MORE QUICKLY INTO COMMERCIAL MARKETS BUT THEY SAID THE NAME WON'T BE DISCLOSED UNTIL AFTER LABOR DAY MR WEISS 50 YEARS OLD WAS PRESIDENT FOR ONLY SEVEN MONTHS UNDER DIRECTIONS FROM THE BOARD OF THE CLOSELY HELD COMPANY TO TRIM COSTS AND TIGHTEN OPERATIONS THOUGH ADMIRED FOR MAKING SOME OF THE WORLD'S FASTEST COMPUTERS THINKING MACHINES FAIRLY OR NOT ALSO HAD A REPUTATION FOR FREESPENDING WAYS AND UNFOCUSED MANAGEMENT MR WEISS WHO COULDN'T BE REACHED JOINED THINKING MACHINES IN 1991 AFTER A 20YEAR CAREER AT DIGITAL EQUIPMENT CORP WHERE HE BUILT THE COMPUTER MAKER'S HUGE GOVERNMENT SALES BUSINESS THINKING MACHINES TOLD ITS STAFF OF MR WEISS'S DEPARTURE LAST WEEK BUT DIDN'T MAKE A PUBLIC ANNOUNCEMENT IT WAS UNCLEAR WHAT LED TO THE MOVE ONE ANALYST SPECULATED THAT MR WEISS HAD FOUND ANOTHER JOB OTHERS CITED LINGERING TENSIONS WITH THINKING MACHINES' COFOUNDER CHAIRMAN AND CHIEF EXECUTIVE SHERYL L HANDLER WHOSE MANAGEMENT WAS IMPLICITLY AT ISSUE WHEN MR WEISS WAS NAMED PRESIDENT THINKING MACHINES HAS BEEN UNDER PRESSURE IN THE PAST YEAR AS THE SURGING SALES GROWTH OF ITS EARLY YEARS STALLED AND LOSSES CONTINUED THOUGH ITS SALES OF 94 MILLION LAST YEAR WERE DWARFED BY THOSE OF MARKET LEADER CRAY RESEARCH INC WHICH HAD 798 MILLION IN REVENUE ITS TECHNOLOGY IS CONSIDERED AT THE LEADING EDGE OF THE INDUSTRY MR WEISS WORKED TO SHIFT RESOURCES AND TRIMMED 22 JOBS FROM A WORK FORCE OF 550 HE WAS SAID BY INSIDERS TO HAVE HAD THE SUPPORT OF DANNY HILLIS A COFOUNDER AND CREATIVE FORCE BEHIND THE COMPANY'S RADICAL MASSIVELY PARALLEL COMPUTER DESIGN IN THIS APPROACH HUNDREDS OR THOUSANDS OF MICROPROCESSORS WORK IN PARALLEL ON A PROBLEM IN CONTRAST TO THE TRADITIONAL APPROACH OF CRAY IN WHICH TWO OR FOUR LARGE LIQUIDCOOLED PROCESSORS HANDLE TASKS SERIALLY ONE STEP AT A TIME INDEED MANY COMPANIES ARE CONSIDERING PARALLEL DESIGNS AS A FASTER CHEAPER ALTERNATIVE TO BIG MAINFRAME COMPUTERS AND IT IS THIS MARKET THAT THINKING MACHINES HAS TARGETED BUT THE COMPLEX SOFTWARE NEEDED FOR THESE MACHINES TO GAIN ACCEPTANCE IN COMMERCIAL MARKETS IS CUMBERSOME AND THE MARKET IS EMERGING COMMERCIAL SALES ARE CRITICAL IN PART BECAUSE GROWTH IN GOVERNMENT SPENDING ON PARALLEL TECHNOLOGY IS UNCERTAIN MOST EARLY PARALLEL DEVELOPMENT HAD BEEN SUPPORTED BY GRANTS FROM THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY AND OTHER GOVERNMENT AGENCIES BUT RECENT INQUIRIES BY THE GENERAL ACCOUNTING OFFICE AND THE HOUSE ARMED SERVIES COMMITTEE WERE CRITICAL OF THESE EFFORTS STEVEN SQUIRES A KEY OFFICIAL IN CHARGE OF US SUPPORT FOR PARALLEL COMPUTING STEPPED ASIDE LATE LAST WEEK REPORTS HIGH PERFORMANCE COMPUTING A WASHINGTON NEWSLETTER IT WASN'T CLEAR WHAT ROLE WAS PLAYED BY MR HILLIS THINKING MACHINES' CHIEF SCIENTIST AND A MEMBER OF THE BOARD HE WAS TRAVELING IN THE CARIBBEAN AND COULDN'T BE REACHED FOR COMMENT 9308230016 930823 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP POISON PILL ADOPTED TO AVERT BROKERAGE FIRM'S TAKEOVER RODMAN & RENSHAW CAPITAL GROUP INC ADOPTED A STOCKHOLDERS RIGHTS PLAN OR POISON PILL IN AN EFFORT TO FEND OFF A TAKEOVER BY ITS MAJOR SHAREHOLDERS CALIFORNIA INVESTOR MARSHALL GELLER WHO HOLDS ABOUT 99 OF THE CHICAGO BROKERAGE FIRM LAST WEEK THREATENED A PROXY BATTLE TO TAKE CONTROL OF THE FIRM ALSO JOSEPHTHAL LYON & ROSS A NEW YORK BROKERAGE FIRM THAT HAS ACQUIRED SIZABLE RODMAN HOLDINGS SET A DEADLINE OF LAST FRIDAY EVENING FOR A MERGER PROPOSAL RODMAN ALLOWED THE OFFER TO EXPIRE THE POISON PILL WILL ALLOW RODMAN STOCKHOLDERS TO BUY NEW SHARES AT A 50 DISCOUNT IN THE EVENT A PERSON OR GROUP ACQUIRES 15 OR MORE OF RODMAN'S OUTSTANDING COMMON STOCK THE ACQUIRING PERSON OR GROUP WILL NOT BE ENTITLED TO THE DISCOUNT RIGHTS RODMAN SHARES CLOSED UP 125 CENTS AT 8125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY WHICH VALUES THE COMPANY AT ABOUT 35 MILLION 9308230015 930823 POWER STRUGGLE PSI'S PLAN TO MERGE WITH CG&E HERALDS NEW UTILITY UNIONS FIGHT GETS NASTY AS IPALCO BID SPLITS HOLDERS AND SHOWS STRAINS AHEAD FOR INDUSTRY VOTE ON DIRECTORS IS TODAY BY JAMES P MILLER AND ANN DE ROUFFIGNAC STAFF REPORTERS OF THE WALL STREET JOURNAL AT 11 AM EDT TODAY IN THE WEALTHY INDIANAPOLIS SUBURB OF CARMEL IND THE NASTIEST TAKEOVER BATTLE OF THE PLACID 1990S WILL CLIMAX IN A MEETING HALL MOST OFTEN USED FOR WEDDING RECEPTIONS THERE IS LITTLE MERRY ABOUT THIS MARRIAGE WEARY SHAREHOLDERS OF PSI RESOURCES INC A UTILITY SERVING 600000 CUSTOMERS IN COUNTIES THAT ENCIRCLE INDIANAPOLIS WILL BE WOOED ONE LAST TIME BEFORE CASTING VOTES FOR DIRECTORS BALLOTING THAT WOULD FAVOR EITHER A FRIENDLY MERGER WITH CINCINNATI GAS & ELECTRIC CO OR A RIVAL 173 BILLION BID FROM IPALCO ENTERPRISES INC THE PARENT OF INDIANAPOLIS POWER & LIGHT CO THE OUTCOME OF TODAY'S CONTEST IS CONSIDERED TOO CLOSE TO CALL AND PROBABLY WON'T BE KNOWN FOR DAYS BUT ONE THING ALREADY APPEARS CLEAR THE CONSOLIDATION MOVEMENT IN THE ONCECOLLEGIAL UTILITY INDUSTRY IS ACCELERATING AND WILL TRIGGER WRENCHING CHANGE THIS IS THE WAVE OF THE FUTURE SAYS BARRY ABRAMSON SENIOR UTILITIES ANALYST AT PRUDENTIAL SECURITIES INC HOSTILE CORPORATE FIGHTS HAVE BECOME RARE SINCE THE EASY FINANCING THAT FUELED THE TAKEOVER BOOM OF THE 1980S DRIED UP AND THEY HAVE BEEN LARGELY UNHEARD OF IN THE UTILITY INDUSTRY HANDCUFFED FOR DECADES BY A DENSE WEB OF GOVERNMENT REGULATORY REQUIREMENTS THAT MAKES EVEN FRIENDLY MERGERS A DAUNTING PROSPECT THE LAST SUCH BATTLE OCCURRED IN 1990 WHEN KANSAS GAS & ELECTRIC CO SPURNED AN 857 MILLION HOSTILE BID FROM KANSAS CITY POWER & LIGHT CO AGREEING INSTEAD TO A 1 BILLION MERGER WITH KANSAS POWER & LIGHT CO BUT THE PROTECTIVE BARRIERS THAT ONCE ENABLED UTILITIES TO BUILD THEIR OWN CAPACITY WITHOUT COMPETITION AND CHARGE WHATEVER THEY COULD GET PAST REGULATORS ARE COLLAPSING LAST OCTOBER'S PASSAGE OF THE NATIONAL ENERGY POLICY ACT REMOVED STRICTURES IN THE WHOLESALE ELECTRICPOWER GENERATION MARKET AND OPENED UTILITIES' TRANSMISSION SYSTEMS TO COMPETITORS FOR A FEE THAT IS ALLOWING NEW PLAYERS GENERALLY OFFERING LOWERCOST POWER TO ENTER A MARKET AND DELIVER ENERGY TO OTHER UTILITIES WHICH THEN SELL IT RETAIL TO CUSTOMERS TO COMPETE WITH THOSE NEW PLAYERS UTILITIES ARE TRYING TO TRIM THEIR OWN COSTS A MERGER IS THE BEST WAY TO CUT COSTS AND ENJOY ECONOMIES OF SCALE SAYS MR ABRAMSON ROGER HALE CHAIRMAN OF LG&E ENERGY CORP OF LOUISVILLE KY FORESEES A MASSIVE INDUSTRY CONSOLIDATION ALTHOUGH HE EXPECTS MOST MERGERS TO BE FRIENDLY ANALYST DANIEL SCOTTO OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP MAINTAINS THAT HOSTILE COMBINATIONS WILL BE COMMONPLACE SAYING ONE WAY TO FACE THIS NEW WORLD IS TO GRAB WHAT YOU CAN FEW CONTESTS ARE AS BITTER AS THIS ONE IT PITS THE CHIEF EXECUTIVES OF CENTRAL INDIANA'S TWO LARGEST UTILITIES EACH WITH SHARPLY CONTRASTING STYLES BUT WHO BOTH SYMBOLIZE THE MODERN UTILITY MANAGER JAMES E ROGERS JR THE BRASH AND AGGRESSIVE 45YEAROLD CHAIRMAN OF PLAINFIELDBASED PSI IS CONSIDERED AN AGENT OF CHANGE WHO EMBRACES DEREGULATION AND THE INCREASED COMPETITION THAT IT BRINGS HIS RIVAL AT IPALCO 48YEAROLD JOHN R HODOWAL SEEMS MUCH MORE THE STEREOTYPICAL UTILITY CHIEFTAIN A LOWKEY CONSERVATIVE ENGINEER AND CAREER EXECUTIVE BUT AT 6 FEET 5 INCHES MR HODOWAL WHO LIKE MR ROGERS IS A LAWYER IS HARD TO MISS AND IS CONSIDERED A SAVVY ENTREPRENEUR HAVING SET UP IPALCO'S NONUTILITY UNIT WHICH MADE MILLIONS OF DOLLARS BY BUYING AND QUICKLY SELLING A CABLETV SYSTEM BOTH EXECUTIVES HAVE BEEN RACING AROUND INDIANA AND WALL STREET PEDDLING THEIR COMPETING PROPOSALS AT A PACE MORE APPROPRIATE TO MR HODOWAL'S HARLEYDAVIDSON MOTORCYCLE THEY HAVE BLANKETED THEIR REGION WITH TV COMMERCIALS AND NEWSPAPER ADS AND RUSHED TO WIN THE SUPPORT OF INFLUENTIAL STATE LAWMAKERS AND LOCAL INTEREST GROUPS WITHIN THE LAST FEW WEEKS THE EXECUTIVES HAVE MET WITH THE HUGE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HOLDER OF A SUBSTANTIAL STAKE IN ALL THREE OF THE UTILITIES INVOLVED THEY WERE BOTH DYNAMIC AND PERSUASIVE SAYS DEWITT BOWMAN CALPERS'S CHIEF INVESTMENT OFFICER THE ISSUES ARE VERY COMPLICATED BUT ONE OF THE FEW THINGS REALLY CLEAR IS THAT NEITHER ONE COULD WORK FOR THE OTHER THE EVENTS WERE SET IN MOTION BY THE DESIRE OF MR ROGERS TO GET OUT IN FRONT OF THE CURVE IN THE ELECTRICUTILITY INDUSTRY'S MOVE TOWARD WHAT HE TERMS THE REGIONALIZATION OF ENERGY GIVEN THE INCREASING PRESSURES TO CONSOLIDATE THE ONETIME NEWSPAPER REPORTER SAYS SELECTING A MERGER CANDIDATE IS A WAY OF CONTROLLING YOUR OWN DESTINY AS A COMPANY HE WAS RECRUITED TO HEAD PSI IN 1988 FROM ENRON CORP WHERE HE WAS RESPONSIBLE FOR THE NATURALGAS COMPANY'S PIPELINE GROUP AT THE TIME MR ROGERS SAYS PSI WAS ON THE ROPES STRUGGLING WITH HUGE WRITEDOWNS LINKED TO CANCELLATION OF A PLANNED NUCLEAR POWER PLANT AFTER 26 BILLION ALREADY HAD BEEN SPENT DIRECTED TO STRENGTHEN THE COMPANY'S WEAKENED FINANCES AND REBUILD RELATIONSHIPS WITH CUSTOMERS MR ROGERS'S MANDATE WHEN HE CAME ABOARD WAS ALSO TO FIND A MERGER OR OTHER ALLIANCE THAT WOULD ENABLE PSI TO THRIVE IN THE CHANGING ENVIRONMENT HIS EXPERIENCE IN THE GAS INDUSTRY AS IT WENT THROUGH A MAJOR CONSOLIDATION IN THE 1980S WAS A MAJOR REASON PSI DIRECTORS TAPPED HIM MR ROGERS FORMED A TASK FORCE THAT EXAMINED DATA ON 16 NEARBY UTILITIES BRIEFING PAPERS FOR PROJECT BROWN SHOW THAT THE GROUP ASSESSED EACH OF THE POTENTIAL PSI PARTNERS ON THE BASIS OF SUCH CRITERIA AS FUEL COSTS CUSTOMER BASE GENERATION CAPACITY MANAGEMENT QUALITY AND THE LOCAL REGULATORY ENVIRONMENT ULTIMATELY PSI RATED CINCINNATI GAS AS THE BEST MERGER CANDIDATE OFFICIALS LIKED THE OHIO COMPANY'S PROXIMITY TO SOUTHERN AND EASTERN MARKETS WHERE PSI WANTS TO SELL EXCESS POWER CG&E'S CASH FLOW WAS CONSIDERED ATTRACTIVE AND ITS GENERATING CAPACITY COMPLEMENTED THAT OF PSI IN ADDITION ITS CUSTOMER BASE MORE DIVERSE AND RETAILORIENTED THAN THAT OF PSI WAS LESS AFFECTED BY THE ECONOMY'S SWINGS THAN PSI'S HEAVILY INDUSTRIAL MIX THE COMBINATION IT WAS FIGURED COULD GENERATE MORE THAN A BILLION DOLLARS IN SAVINGS OVER THE NEXT 10 YEARS IN FUEL MAINTENANCE AND OPERATING COSTS ALL IN ALL THE COMPANIES BELIEVED THAT THE FIT WOULD BENEFIT THEM IN A MORE COMPETITIVE FUTURE IPALCO SOMETIMES DUBBED THE HOLE IN THE DOUGHNUT BECAUSE IT IS SURROUNDED BY PSI'S TERRITORY DIDN'T EVEN MAKE THE LIST OF THE FIVE TOPRATED PSI CHOICES BECAUSE OF THEIR GEOGRAPHICAL PROXIMITY PSI AND IPALCO HAVE TALKED INFORMALLY IN THE PAST ABOUT A POSSIBLE COMBINATION AND AS PSI'S FISCAL HEALTH IMPROVED IPALCO MADE ITS INTEREST IN THE LARGER NEIGHBOR CLEAR BUT NOT MUCH CAME OF THE CONTACTS WE NEVER SAT DOWN AT THE TABLE WITH THEM SAYS IPALCO SPOKESWOMAN SUSAN HANAFEE MR HODOWAL DECLINED TO BE INTERVIEWED THIS WEEKEND IN APRIL 1992 MR ROGERS MET WITH JACKSON H RANDOLPH CG&E'S CHAIRMAN ABOUT A POSSIBLE COMBINATION AND WHEN THE IDEA MET WITH SOME INTEREST MORE DETAILED STUDIES WERE STARTED LATE THAT SUMMER MR ROGERS AND IPALCO'S MR HODOWAL PLAYED A ROUND OF GOLF WHERE THEY AGAIN TALKED INFORMALLY ABOUT A POSSIBLE COMBINATION WHILE EACH MAN HAS OFFERED A DIFFERENT VERSION OF HOW THE DISCUSSION WENT BOTH MAKE IT CLEAR THAT THEY DETECTED LITTLE INTEREST ON THE PART OF THE OTHER FOR A MERGER PSI PUSHED AHEAD WITH ITS CG&E TALKS IN MIDDECEMBER PSI AND THE OHIO CONCERN UNVEILED THEIR PLAN TO FORM A NEW COMPANY TO BE KNOWN AS CINERGY STOCKHOLDERS OF BOTH COMPANIES WOULD SWAP THEIR SHARES FOR STOCK IN THE NEW COMPANY THE TRANSACTION WAS STRUCTURED SO THAT THE VALUE OF THE DEAL MOVES IN CONCERT WITH THE PRICE OF CG&E SHARES PSI SHARES WHICH HAD BEEN TRADING AT 1850 MOVED UP IN BIG BOARD TRADING FRIDAY PSI'S SHARES CLOSED AT 25125 DOWN 25 CENTS CG&E'S SHARES ENDED UNCHANGED AT 28125 AND IPALCO'S STOCK FINISHED AT 3625 UP 25 CENTS WALL STREET ANALYSTS GAVE THE DEAL A LUKEWARM OK IPALCO OFFICIALS WHO HADN'T RECEIVED ANY ADVANCE WORD OF THE DEAL THEIR NEIGHBOR WAS CUTTING WITH CG&E BEGAN RACING TO SEE IF THEY COULD TOP THE CINERGY TRANSACTION CONCERNED THAT ITS CHANCES FOR GROWTH COULD BE STUNTED AND FEARING A POSSIBLE LOSS OF INDEPENDENCE TO A STRONG UTILITY IPALCO IN MARCH ANNOUNCED A COMPETING 2650 A SHARE OR 15 BILLION CASHANDSTOCK BID FOR PSI THE TENDER OFFER WAS FORMALLY LAUNCHED THE NEXT MONTH SINCE THEN IT HAS BEEN A NOHOLDSBARRED FIGHT IPALCO SUED PSI FOR MISREPRESENTING THE BENEFITS OF THE MERGER PROPOSAL AND PSI LATER COUNTERSUED IN THEIR MEDIA BLITZ BOTH SIDES HAVE CLAIMED THEY CAN WRING BIG SAVINGS OUT OF A COMBINATION AND CAN CLEAR REGULATORY HURDLES WITH MORE EASE AND BOTH HAVE IMPUGNED THE OTHER COMPANY'S HONOR IT'S BEEN NASTY SAYS MR ROGERS WITH A KENTUCKY DRAWL I'VE SPENT FIVE OR SIX MONTHS ON A ROLLER COASTER EVERYTHING WE DO EVERYTHING WE BELIEVE EVERYTHING WE'RE TRYING TO ACHIEVE IS UNDER ATTACK YOU FIND YOURSELF PLAYING DEFENSE ALL THE TIME SOME CRITICS INCLUDING IPALCO HAVE BEEN QUICK TO POINT OUT THAT THE PSI/CG&E MERGER ANNOUNCEMENT DISCLOSED THAT CG&E'S 62YEAROLD CHAIRMAN JACKSON H RANDOLPH PLANS TO RETIRE AS CHIEF EXECUTIVE AT THE END OF 1995 IF THE MERGER IS APPROVED MR ROGERS WOULD THEN BE IN POSITION TO ASSUME THE TOP JOB AT THE COMPANY WHICH WOULD BE THE 13TH LARGEST INVESTOROWNED UTILITY THE PSI CHIEF EXECUTIVE DENIES THE IMPLICATION THAT THE MERGER PARTNER WAS CHOSEN TO GRANT HIM QUICK SUCCESSION TO THE THRONE THE ELABORATE SEARCH PUT CG&E AT THE TOP OF THE LIST BASED ON NUMEROUS CRITERIA HE SAYS NOTING HE HAD BEEN HIRED BY PSI'S BOARD IN PART TO PUT A MERGER TOGETHER CEO JOBS ARE GREAT JOBS BY THE WAY HE SAYS ONE OF THE PRACTICAL IMPEDIMENTS TO MERGERS HE SAYS IS GETTING SOMEBODY TO STEP BACK FOR A TIME FROM THEIR NO 1 ROLE IN THAT SENSE HE SAYS THE DIFFERENCE IN OUR AGES FACILITATED THAT ISSUE FOR ITS PART PSI CLAIMS THAT IF IPALCO WINS RATEPAYERS WILL BE BURDENED WITH THE PREMIUM IT IS PROPOSING TO PAY FOR PSI IPALCO MAINTAINS THAT THE PROJECTED SAVINGS WILL PAY FOR THE PREMIUM AND COUNTERS THAT PSI HAS GIVEN AWAY THE STORE TO CUSTOMERS AND LEFT VIRTUALLY NOTHING FOR SHAREHOLDERS IN THE COURSE OF THE FIGHT IPALCO NOMINATED ITS OWN SLATE OF CANDIDATES FOR THE FIVE SEATS UP FOR ELECTION AT TODAY'S PSI ANNUAL MEETING TODAY'S VOTE ISN'T ON A SPECIFIC TENDER OFFER AND ONLY INVOLVES ELECTION OF A MINORITY OF THE 14MEMBER PSI BOARD BUT IT IS STILL SEEN AS A REFERENDUM THAT WILL DETERMINE THE OUTCOME OF THE TAKEOVER FIGHT IPALCO SAYS IT PLANS TO WITHDRAW ITS BID IF ITS SLATE LOSES INVESTORS HAVE BEEN HARDPRESSED TO EVALUATE THE COMPETING OFFERS BECAUSE THE HAND OF REGULATORS LIES SO HEAVILY ON THE INDUSTRY PICKING THE HIGHEST BID WON'T DO THE TRICK IS TO GUESS WHICH PLAN HAS THE BEST CHANCE OF GETTING REGULATORY CLEARANCE CALPERS FOR EXAMPLE WAS STILL STUDYING THE SITUATION LATE FRIDAY THE SHORTTERM RESULTS SEEM TO FAVOR PSI SLIGHTLY BUT THERE ARE ALSO QUESTIONS OF GETTING FEDERAL APPROVAL SAYS MR BOWMAN WHILE IPALCO DENIES IT MOST OBSERVERS FIGURE THE PSI/CG&E LINK WOULD GET AN EASIER REGULATORY NOD AS LATE AS YESTERDAY AN IPALCO SPOKESWOMAN WAS SAYING THAT IF WE LOSE THE VOTE IT IS PSI HOLDERS WHO WILL PAY THE BIGGEST PRICE AND PSI HOLDERS WHO WILL BE SORELY DISAPPOINTED WHEN THEY DISCOVER THAT THE CINERGY TRANSACTION NEEDS MORE REGULATORY CLEARANCES THAN ITS PROPONENTS HAVE CLAIMED EARLIER THIS MONTH WITH THE SHAREHOLDER MEETING APPROACHING IPALCO RAISED ITS BID TO 28 A SHARE RESPONDING TO THE SWEETENED OFFER CG&E A WEEK AGO AGREED TO REVAMP THE EXCHANGE RATIO OF THE PROPOSED MERGER TO GIVE PSI HOLDERS A LIKE AMOUNT RAISING THE POSSIBILITY THAT THE EXCHANGE COULD GO AS HIGH AS 3069 A SHARE IF THE CINCINNATI COMPANY'S STOCK PRICE INCREASES THAT HIGHER RATIO HOWEVER IS CONDITIONED ON PSI'S SLATE BEING ELECTED THINGS GOT HOTTER LAST WEDNESDAY IPALCO INCREASED ITS BID TO 3050 A SHARE ON FRIDAY PSI'S BOARD UNANIMOUSLY VOTED TO URGE HOLDERS TO REJECT IPALCO'S LATEST OFFER AGAIN CALLING IT ILLUSORY WHATEVER THE OUTCOME THE NASTY FRACAS HAS TAKEN A TOLL WHEN YOU GET INTO THE TYPE OF OLDFASHIONED MUDSLINGING WAR OF WORDS WE'VE BEEN INVOLVED IN THE CREDIBILITY OF BOTH COMPANIES SUFFERS DECLARES MR ROGERS YOU ERODE THE TRUST PEOPLE PLACED IN YOU AND IT'S HARD ENOUGH TO GAIN THAT TRUST IN THE FIRST PLACE HE SAYS ALLANNA SULLIVAN CONTRIBUTED TO THIS ARTICLE 9308230014 930823 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S HEALTH PLAN WILL QUICKLY HELP SHRINK THE BUDGET DEFICIT ACCORDING TO THE FINANCING SCENARIOS THE PRESIDENT IS CONSIDERING THE KEY TO FINANCING THE PROPOSAL TO BE INTRODUCED NEXT MONTH WILL BE CAPS PLACED ON PUBLIC AND PRIVATE HEALTHCARE SPENDING THE PRESIDENT IS STILL MULLING FINANCING OPTIONS INCLUDING A SIN TAX ON ALCOHOL AND TOBACCO MICROSOFT FACES A JUSTICE DEPARTMENT ANTITRUST PROBE EVEN AS THE FTC HAS CLOSED ITS INQUIRY OF THE SOFTWARE COMPANY WITHOUT FILING ANY CHARGES TAMBRANDS' OUSTED CHIEF EXECUTIVE MARTIN FC EMMETT STEERED AN ESTIMATED 2 MILLION OF WORK DURING HIS TENURE TO HUMANRESOURCES FIRM PERSONNEL CORP OF AMERICA WHOSE TWO PRINCIPALS ARE LONGTIME FRIENDS OF HIS AFTER THE OUSTER TAMBRANDS ENDED MOST OF ITS CONTRACTS WITH PCA LOCKHEED'S PROPOSAL TO REBUILD THE NATION'S AILING FLEET OF OLDER C141 AIRLIFTERS WAS CRITICIZED IN A DRAFT PENTAGON REPORT THE FINDINGS BOOST PROSPECTS FOR SALES TO THE AIR FORCE BY MCDONNELL DOUGLAS AND BOEING PSI RESOURCES SHAREHOLDERS WILL CAST VOTES TODAY ON RIVAL MERGER PROPOSALS FROM CINCINNATI GAS AND IPALCO ENTERPRISES THE BITTER CONTEST IS SEEN AS A HARBINGER OF A WAVE OF UTILITYINDUSTRY COMBINATIONS MANY OF WHICH ARE EXPECTED TO BE HOSTILE THE MISSISSIPPI RIVER WAS OPENED TO LIMITED BARGE TRAFFIC AFTER NEARLY TWO MONTHS OF RECORD FLOODING HOWEVER BARGEDEPENDENT INDUSTRIES FACE MORE MONTHS OF SUPPLY DISRUPTIONS WALMART'S PRICING PRACTICES FACE SCRUTINY AS A LAWSUIT FILED BY THREE INDEPENDENT PHARMACIES OPENS TODAY IN ARKANSAS IF THE GIANT RETAILER LOSES IT COULD FACE NUMEROUS SIMILAR SUITS FED POLICY MAKERS DECIDED IN JULY TO CONTINUE TILTING TOWARD HIGHER SHORTTERM RATES BUT THAT POSTURE WAS MAINTAINED LESS BECAUSE OF IMMEDIATE FEARS ABOUT INFLATION THAN A DESIRE TO DISPLAY A SENSE OF CONTINUITY A TOP GM OFFICIAL EXPRESSED CONCERN THAT JAPANESE AUTO MAKERS ARE SELLING VEHICLES IN THE US BELOW COST AND SUGGESTED THAT THOSE FOREIGN RIVALS NEED TO RAISE PRICES MORE TO REFLECT THE INCREASED VALUE OF THE YEN GM AND VW SHOULD SETTLE THEIR DISPUTE OVER ALLEGEDLY STOLEN DOCUMENTS IN CIVIL RATHER THAN CRIMINAL COURT SAID GERMANY'S ECONOMICS MINISTER WHO WANTS TO PROTECT BOTH HIS NATION'S AUTO MAKERS AND US ECONOMIC TIES THINKING MACHINES' HARVEY WEISS LEFT HIS TWO POSTS AT THE COMPANY HERALDING A MANAGEMENT SHAKEUP AT THE PIONEERING SUPERCOMPUTER MAKER THE COMEX'S BOARD APPROVED THE NEW YORK MERC'S MERGER TERMS SETTING THE STAGE FOR A VOTE LATE THIS YEAR BY MEMBERS OF THE FUTURES EXCHANGES ON THE PROPOSED CONSOLIDATION SILICON GRAPHICS CHIPS WILL BE USED IN CERTAIN FUTURE NINTENDO VIDEOGAME MACHINES UNDER A PACT THE COMPANIES ARE EXPECTED TO ANNOUNCE TODAY CADBURY SCHWEPPES WILL PAY 2318 MILLION FOR PRUDENTIAL INSURANCE'S DR PEPPER/SEVENUP STAKE LIFTING THE UK SOFTDRINK MAKER'S HOLDING IN THE DALLAS COMPANY TO 259 FROM 57 THE DOW JONES INDUSTRIALS CLIMBED TO THEIR FOURTH STRAIGHT RECORD RISING 335 POINTS TO 361548 TREASURY NOTES AND BONDS ENDED NARROWLY MIXED BONDS LEHMAN BROTHERS TREASURY INDEX 547190 OFF 2363 COMMODITIES OIL 1809 A BARREL UP 44 CENTS DOW JONES FUTURES INDEX 12475 UP 091 SPOT INDEX 12286 OFF 109 DOLLAR 10435 YEN OFF 155 16755 MARKS OFF 0012 9308230013 930823 LAW FIRMS VIOLATED LAWS ON THE ENVIRONMENT MANY LAWYERS ADMIT WASHINGTON AP TWOTHIRDS OF CORPORATE LAWYERS WHO RESPONDED TO A SURVEY ACKNOWLEDGED THEIR COMPANIES VIOLATED ENVIRONMENTAL LAWS DURING THE PAST YEAR AND SAID THEY BELIEVE FULL COMPLIANCE IS IMPOSSIBLE THE SURVEY BY THE NATIONAL LAW JOURNAL AND ARTHUR ANDERSEN ENVIRONMENTAL SERVICES FOUND HOWEVER ALMOST 70 OF RESPONDENTS BELIEVED INCREASED ATTENTION TO THE ENVIRONMENT WOULD IMPROVE THEIR COMPANIES' LONGTERM PROFITABILITY THE SURVEY WAS BASED ON QUESTIONNAIRES SENT IN JUNE TO COMPANIES NATIONWIDE FROM MANUFACTURERS AND MINING COMPANIES TO INSURANCE AND REAL ESTATE FIRMS WITH REVENUE RANGING FROM 50 MILLION TO MORE THAN 10 BILLION THE RESULTS WERE BASED ON THE REPLIES OF THE 233 CORPORATE LAWYERS WHO RESPONDED OF THE RESPONDENTS 67 SAID THEIR COMPANIES HADN'T COMPLETELY COMPLIED WILL ALL FEDERAL AND STATE ENVIRONMENTAL LAWS DURING THE PAST YEAR JUST OVER 66 ANSWERED NO WHEN ASKED WHETHER IT WAS POSSIBLE TO ACHIEVE FULL COMPLIANCE THE LAWYERS CITED THE COMPLEXITY OF THE LAWS VARYING INTERPRETATIONS BY REGULATORS COST AND HUMAN ERROR THE NATIONAL LAW JOURNAL REPORTED IN ITS AUG 30 ISSUE STILL THE RESPONDENTS DISPUTED COMPLAINTS THAT US ENVIRONMENTAL RESTRICTIONS ARE DRIVING AMERICAN FIRMS OVERSEAS WHERE REGULATION MIGHT BE MORE LAX SOME 86 SAID US REGULATIONS HADN'T CAUSED THEM TO CONSIDER MANUFACTURING SITES OVERSEAS ALMOST 95 OF THE RESPONDENTS SAID THEY BELIEVE ENVIRONMENTAL REGULATION IS BECOMING MORE STRINGENT WORLDWIDE 9308230012 930823 CORPORATE FOCUS TURNER DEAL WILL PROVIDE STEADY FLOW OF FEATURE FILMS BUT SOME WONDER IF PRICE FOR NEW LINE AND CASTLE ROCK IS TOO HIGH BY JOHNNIE L ROBERTS AND ROCHELLE SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHEN TED TURNER LAST WENT SHOPPING IN HOLLYWOOD SNAPPING UP MGM/UA ENTERTAINMENT CO FOR 14 BILLION IN 1986 THE DEBTLADEN PURCHASE ALMOST COST HIM CONTROL OF HIS COMPANY TO SAVE HIS EMPIRE THE AUDACIOUS KINGPIN OF TURNER BROADCASTING SYSTEM INC HAD TO SUBMIT TO A BAILOUT BY GIANT CABLE OPERATORS WHO PUT HIM ON A TIGHT BUDGET BUT MR TURNER'S DEAL LAST WEEK TO BUY NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT FOR 600 MILLION IN CASH AND STOCK AND THE ASSUMPTION OF ROUGHLY 200 MILLION IN DEBT POSES LITTLE THREAT OF FINANCIAL RUIN IN THE VIEW OF A BROAD ARRAY OF HOLLYWOOD EXECUTIVES AND WALL STREET ANALYSTS RATHER THAN A MOUNTAIN OF DEBT HE IS USING MOSTLY TURNER STOCK THIS TIME AROUND TO PAY FOR THE PURCHASE AND THE PROPERTIES TWO OF THE LAST INDEPENDENT STUDIOS WILL GIVE HIM A MUCHNEEDED STEADY SOURCE OF FRESH FEATURE FILMS TO SHOW ON HIS CABLE NETWORKS TNT AND TBS HE HAS GAINED HIMSELF A PRESENCE WITHOUT HOCKING THE COMPANY NOTES JOHN REIDY AN ANALYST WITH SMITH BARNEY SHEARSON ON NEWS OF THE DEAL FIRST BOSTON CORP ISSUED A STRONG BUY RECOMMENDATION FOR TURNER STOCK TURNER BROADCASTING SHARES GAINED 375 CENTS TO CLOSE AT 2275 WHILE NEW LINE CLIMBED 625 CENTS TO 2025 FRIDAY IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YET WHILE MR TURNER HASN'T WAGERED HIS EMPIRE OF WHICH HE STILL OWNS A 51 VOTING STAKE SOME INVESTORS NONETHELESS GROUSE THAT HE MAY HAVE PAID A BLOATED PRICE IT INCLUDES AN INDICATED PRICE OF 500 MILLION IN TURNER BROADCASTING CLASS B SHARES AND ASSUMPTION OF 60 MILLION IN DEBT FOR NEW LINE A PRICE REPRESENTING NEARLY 19 TIMES THE 30 MILLION IN CASH FLOW THE STUDIO IS EXPECTED TO GENERATE THIS YEAR ACCORDING TO ANALYSTS INVESTOR CONCERN ABOUT THE PRICE TAG IS ONE FACTOR BEHIND A 6 DROP IN TURNER CLASS B SHARES SINCE THE DEAL WAS ANNOUNCED OTHER OBSERVERS SAY THE PRICE OF HIS TINSELTOWN SHOPPING SPREE IS ONLY THE EXPENSIVE START OF MR TURNER'S CAREER AS A DREAM MERCHANT WITH PERHAPS HUNDREDS OF MILLIONS OF DOLLARS MORE A YEAR REQUIRED TO INCREASE PRODUCTION AND BOLSTER DISTRIBUTION THE CASTLE ROCK PORTION OF THE TRANSACTION IN PARTICULAR IS RAISING EYEBROWS IN SOME QUARTERS CLOSELY HELD CASTLE ROCK IS A SMALL STREAMLINED PRODUCTION ENTITY WITH SUCH HITS AS IN THE LINE OF FIRE AND A FEW GOOD MEN TO ITS CREDIT YET ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL TURNER HAS AGREED TO A LOFTY PRICE TAG THAT INCLUDES ROUGHLY 100 MILLION IN CASH AND THE ASSUMPTION OF ABOUT 46 MILLION IN DEBT OWED TO WESTINGHOUSE ELECTRIC CORP IT ALSO REQUIRES TURNER TO ASSUME AN ADDITIONAL 100 MILLION IN BANK DEBT COLLATERALIZED BY FUTURE FILM AND TV PRODUCTIONS A CASTLE ROCK INSIDER SAID BUT FOR ITS OUTLAY TURNER BROADCASTING WON'T GAIN FULL CONTROL OF CASTLE ROCK'S OUTPUT FOR AT LEAST FOUR YEARS ALL THE WHILE IT WILL HAVE TO PICK UP THE TAB FOR AN EXPANDING SLATE OF FILMS PLUS THE COST OF PRINTS AND ADVERTISING WHICH THE STUDIO MUST PRODUCE FOR DISTRIBUTION BY A HOLLYWOOD RIVAL SONY CORP SONY OWNS A 44 STAKE IN CASTLE ROCK AND TURNER HAD TO AGREE TO EXTEND SONY'S DISTRIBUTION RIGHTS BY AN ADDITIONAL TWO YEARS TO ENTICE SONY INTO SELLING ITS SHARES ORIGINALLY THE DISTRIBUTION DEAL WITH SONY'S COLUMBIA PICTURES STUDIO WAS SCHEDULED TO LAPSE AT THE END OF 1995 AND NINE MOVIES REMAIN UNDER THAT PACT NOW THE EXTENDED TERMS WILL COVER AT LEAST AN ADDITIONAL 18 CASTLE ROCK MOVIES THROUGH 1997 ACCORDING TO PEOPLE FAMILIAR WITH THE DETAILS MOREOVER TURNER AGREED TO BOOST SONY'S DISTRIBUTION FEE WHICH UNDER THE OLD ARRANGEMENT RANGED FROM 15 TO 20 OF RENTAL REVENUES SONY ALSO WILL COLLECT AS MUCH AS 15 MILLION IN INCENTIVE PAYMENTS RELATED TO CERTAIN RIGHTS UNDER THE EXISTING DISTRIBUTION DEAL KNOWLEDGEABLE PEOPLE SAY AND SONY RETAINS THE RIGHTS TO SYNDICATE RERUNS OF THE CASTLE ROCKPRODUCED HIT TV SHOW SEINFELD A FRANCHISE THAT COULD WELL GROSS HUNDREDS OF MILLIONS OF DOLLARS IN THE NEXT FEW YEARS A TOP OFFICIAL AT ONE MAJOR STUDIO SAYS INCREDULOUSLY FOR CASTLE ROCK MR TURNER IS PAYING 100 MILLION FOR THE RIGHT TO FINANCE VERY EXPENSIVE MOVIES TO GIVE TO SONY'S COLUMBIA TO DISTRIBUTE FOR A BIGGER PIECE OF GROSSES OFF THE TOP AND SONY GETS TO KEEP SEINFELD' PLEASE LET SOMEONE MAKE ME THAT DEAL AND THAT'S JUST THE ICING FOR SONY SONY WILL ALSO RECEIVE CASH FOR THE 40 MILLION INVESTMENT IT ORIGINALLY PUT INTO CASTLE ROCK AND TURNER WILL ALSO BUY 15 MILLION OF CASTLE ROCK CONVERTIBLE SECURITIES THAT SONY HOLDS IN ADDITION CASTLE ROCK FILMS HAVE BOOSTED THE PROFITS OF NEW LINE WHICH DISTRIBUTES SOME CASTLE ROCK WORKS OVERSEAS AND ON HOME VIDEO IN THE US SO SOME OBSERVERS WONDER WHETHER MR TURNER IN BUYING NEW LINE HAS IN EFFECT PAID FOR A PART OF CASTLE ROCK TWICE A NEW LINE INSIDER NOTES THAT HANDLING THE CASTLE ROCK PICTURES GENERATED DECENT PROFIT AND SUBSTANTIAL REVENUE FOR NEW LINE SINCE LAST YEAR AND ONE PERSON CLOSE TO THE TRANSACTION CONTENDS THAT NEW LINE'S STOCK PRICE INDEED IS BOOSTED IN PART BY ITS DISTRIBUTION OF CASTLE ROCK MOVIES NEW LINE WHICH IS BEST KNOWN FOR ITS TEENAGE MUTANT NINJA TURTLES AND NIGHTMARE ON ELM STREET MOVIES HAD 1992 PROFIT OF 64 MILLION OR 45 CENTS A SHARE ON REVENUE OF 227 MILLION BUT TURNER INSIDERS SAY THEIR BOSS WHO RETREATED TO HIS VAST MONTANA RANCH AFTER THE DEAL IS A VERY HAPPY MAN BECAUSE OF THE OUTCOME IN SELLING THE DEAL TO THE TURNER BROADCASTING BOARD HE ARGUED THAT THE PRICE WAS WORTH THE STRATEGIC GOAL OF SECURING AN ONGOING SUPPLY OF FILMS SENIOR INSIDERS ALSO SAY PUBLISHED REPORTS OVERSTATED THE NEW LINE PURCHASE PRICE WHILE IT HAS BEEN SAID TO INCLUDE 500 MILLION IN TURNER SHARES AND THE ASSUMPTION OF 70 MILLION OF DEBT THEY SAY THE 500 MILLION IS AN ERRONEOUS ESTIMATION BASED ON A TURNER STOCK PRICE OF 23 A SHARE ALTHOUGH THE COMPANY HASN'T PREVIOUSLY DISCLOSED IT THE INSIDERS SAY THE AGREEMENT SETS THE STOCK SWAP BASED ON TURNER SHARES WORTH BETWEEN 21 AND 22 A SHARE FOR A PURCHASE PRICE OF ABOUT 460 MILLION AND NEW LINE'S DEBT TOTALS ONLY 60 MILLION THEY MAINTAIN ONE TOP TURNER INSIDER CONCEDES THAT THE CONCESSIONS TO SONY ON CASTLE ROCK WILL HAVE SOME DOLLAR CONSEQUENCE BUT QUICKLY ADDS THAT IT IS NOTHING MAJOR THIS OFFICIAL ALSO SAID THAT WHILE MR TURNER WANTS TO EXPAND THE PRODUCTION SLATE OF NEW LINE AND CASTLE ROCK MOVIES WE WILL DO IT PRUDENTLY SOME OUTSIDERS ALSO BELIEVE THE CARPING ABOUT OVERPAYING IS UNWARRANTED IN RECOMMENDING THE TURNER STOCK AS A STRONG BUY ANALYST MARY L KUKOWSKI OF FIRST BOSTON TERMED SUCH CONCERN TERRIBLY SHORTSIGHTED IN AN INTERVIEW SHE SAID THE ESTIMATED 30 MILLION IN NEW LINE'S 1993 CASH FLOW ISN'T INDICATIVE OF WHAT THE COMPANY IS CAPABLE OF IN THE LONGER TERM WHEN NEW LINE REGAINS THOSE LUCRATIVE RIGHTS THAT IT PREVIOUSLY SOLD FOR FUNDING TURNER BROADCASTING ADMIRERS ALSO SAY THE DEAL WILL BEGIN TO PROVIDE MR TURNER WITH THE SUPPLIES OF FILMED ENTERTAINMENT THAT WHEN COMBINED WITH HIS EXISTING MGM LIBRARY POSITION HIM TO STORM INTO THE GLOBAL MARKET PETER DEKOM THE POWERFUL HOLLYWOOD LAWYER RECALLS THAT CRITICS ACCUSED MR TURNER OF OVERPAYING FOR THE MGM LIBRARY WHICH HE USED AS THE FOUNDATION FOR HIS SUCCESSFUL TNT NETWORK THAT WAS A BRILLIANT DECISION SAYS MR DEKOM NEVER BET AGAINST TED EVERYTHING TED HAS BOUGHT HAS TURNED TO GOLD 9308230011 930823 SABENA'S CHAIRMAN AGREES TO STAY ON JOB AS UNIONS ACCEPT PLAN SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE CHAIRMAN OF BELGIAN NATIONAL CARRIER SABENA PIERRE GODFROID AGREED TO STAY ON THE JOB AFTER UNIONS AT THE AIRLINE ACCEPTED AN AUSTERITY PLAN THAT INCLUDES WAGE CUTS OF AS MUCH AS 17 SABENA'S THREE MOST IMPORTANT UNIONS AGREED IN PRINCIPLE TO THE PLAN REVERSING THE REJECTION BY SABENA'S 10000STRONG WORK FORCE IN AN AUG 4 REFERENDUM MR GODFROID OFFERED TO QUIT AFTER THE REFERENDUM BUT THE BOARD HELD HIS RESIGNATION IN ABEYANCE FOR TWO WEEKS TO ALLOW FOR MORE TALKS WITH THE THREE MAJOR UNIONS THE AUSTERITY PACKAGE MR GODFROID PROPOSED AIMS TO KEEP SABENA IN BUSINESS BY SAVING 55 BILLION FRANCS 155 MILLION OVER THREE YEARS PRESS REPORTS PUT SABENA LOSSES THIS YEAR AT SIX BILLION FRANCS NOT TAKING PART IN ANY NEGOTIATIONS ARE SABENA'S 470 PILOTS WHOSE SPOKESMAN SAID THAT IF THE AUSTERITY PLAN IS ADOPTED HIS GROUP WILL TAKE WORKTORULE OR STRIKE MEASURES 9308230010 930823 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT SWEDISH EXPORT CREDIT CORP 150 MILLION OF EXCHANGEABLE PREFERRED CAPITAL SECURITIES PRICED WITH A 7375 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE COMPANY ISSUED EIGHT MILLION SHARES OF THE PREFERRED CAPITAL SECURITIES AT 25 APIECE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SWEETHEART CUP CO 300 MILLION TWOPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 190 MILLION OF SENIOR NOTES DUE SEPT 1 2000 WAS PRICED AT PAR TO YIELD 9625 THE NOTES WHICH ARE NONCALLABLE FOR FOUR YEARS ARE RATED BA3 BY MOODY'S AND SINGLEBPLUS BY S&P THE SECOND TRANCHE 110 MILLION OF SENIOR SUBORDINATED NOTES DUE SEPT 1 2003 WAS PRICED AT PAR TO YIELD 105 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P SWEETHEART CUP IS A UNIT OF SWEETHEART HOLDINGS INC FORD HOLDINGS INC 200 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK DEPOSITARY SHARES WITH A DIVIDEND YIELD OF 712 PRICED AT 25 A SHARE ACCORDING TO MCM CORPORATEWATCH EACH OF THE EIGHT MILLION SHARES REPRESENTS 1/4000 SHARE OF SERIES C STOCK RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD HOLDINGS IS A UNIT OF FORD MOTOR CO PAINEWEBBER PREMIER INTERMEDIATE TAXFREE INCOME FUND INC INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 15 APEICE THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993188 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY DAIWA SECURITIES AMERICA INC THE OFFERING SERIES 1993184 IS BACKED BY THE PRINCIPALONLY CLASSES OF STRIPS TRUST 222 AND STRIPS TRUST 240 WHICH ARE BACKED IN TURN BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 745 FOR STRIPS TRUST 222 AND OF 75 FOR STRIPS TRUST 240 THE WEIGHTED AVERAGE MATURITIES ARE 355 MONTHS AND 358 MONTHS RESPECTIVELY FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993182 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS CREDIT LYONNAIS FRANCE 15 BILLION FRENCH FRANCS OF 675 EUROBONDS DUE SEPT 9 2004 AT ISSUE AND REOFFER PRICE 9761 FOR OWN ACCOUNT BONDS YIELD 707 A SPREAD OF 67 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 04 POINT LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE GERMANY 150 MILLION MARKS OF 65 EUROBONDS DUE SEPT 18 2003 AT ISSUE PRICE 101775 VIA MORGAN STANLEY GMBH REOFFERED AT 99625 TO YIELD 655 BONDS CALLABLE ON SEPT 18 1995 AND ANNUALLY THEREAFTER AT PAR FEES 25 POINTS 9308230009 930823 ORANGE & ROCKLAND FORMS GROUP TO PROBE CHARGES PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC SAID IT FORMED A SPECIAL COMMITTEE OF DIRECTORS TO INVESTIGATE ALLEGATIONS OF ILLEGAL CAMPAIGN CONTRIBUTIONS BY THE COMPANY JAMES F SMITH CHAIRMAN AND CHIEF EXECUTIVE SAID A COMMITTEE OF FOUR OUTSIDE DIRECTORS WILL INVESTIGATE ALLEGATIONS BEING MADE BY THE ROCKLAND COUNTY NY DISTRICT ATTORNEY'S OFFICE LAST WEEK COUNTY OFFICIALS ARRESTED LINDA WINIKOW THE UTILITY'S VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS ON CHARGES OF ARRANGING FOR OTHERS TO MAKE CAMPAIGN CONTRIBUTIONS WHICH WERE THEN REIMBURSED WITH CORPORATE FUNDS DISGUISED AS OTHER EXPENSES THE COMMITTEE'S FORMATION UNDERLINES THE BOARD'S COMMITMENT TO SEEK AND TO FIND THE TRUTH WHEREVER THE CHIPS MAY FALL SAID MR SMITH IN A LETTER TO EMPLOYEES THE ALLEGATIONS BEING MADE DON'T REFLECT THE WAY WE DO BUSINESS AT ORANGE & ROCKLAND THE COMMITTEE WILL BE CHAIRED BY LINDA C TALIAFERRO FORMER CHAIRWOMAN OF THE PENNSYLVANIA PUBLIC SERVICE COMMISSION THE COMPANY SAID THE PANEL MAY RETAIN OUTSIDE COUNSEL IN ORDER TO MAINTAIN ITS INDEPENDENCE 9308230008 930823 AMEX DISCIPLINES TWO FOR RULES VIOLATIONS NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT DISCIPLINED TWO FORMER EMPLOYEES OF DEAN WITTER REYNOLDS INC FOR BREAKING ITS RULES AND SECURITIESEXCHANGE LAWS MICHAEL J EBNER OF NORTH READING MASS A FORMER ASSISTANT BRANCHOFFICE MANAGER WAS BARRED FOR FAILING TO SUPERVISE A BROKER AND FOR FAILING TO TAKE APPROPRIATE ACTION AFTER LEARNING THAT A CUSTOMER HAD COMPLAINED ABOUT LOSSES INCURRED IN HER ACCOUNT JOHN COPPOLA OF TAMPA FLA WAS BARRED FOR MISAPPROPRIATING 16276 FROM TWO CUSTOMER ACCOUNTS AND FAILING TO OBTAIN CERTAIN WRITTEN AGREEMENTS AMONG OTHER CHARGES THE INDIVIDUALS BOTH OF WHOM SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING ALLEGATIONS COULDN'T BE REACHED DEAN WITTER HAD NO COMMENT 9308230007 930823 THAT'S NO SPACESHIP THAT'S MY CAR NEON INVADES EXPRESSWAYS LIGHTS ON UNDERSIDES OF AUTOS ARE THOUGHT PRETTY NEAT' NEXT PINK SPEAKER RINGS BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI SO YOU'RE GETTING OLD AND BORING AND YOU ARE LOOKING FOR A WAY TO ADD ZIP TO YOUR LIFE TRY THIS BUY SOME NEON LIGHTS AND CONCEAL THEM ON THE BOTTOM OF YOUR CAR THEN TURN THEM ON AT NIGHT CRUISE THE STREETS AND SPOOK YOUR NEIGHBORS WITH THE EERIE SIGHT OF AN AUTO SEEMINGLY FLOATING ON AN OTHERWORLDLY GLOW IT LOOKS NICE AT NIGHTTIME ESPECIALLY WHEN YOU DRIVE ON THE EXPRESSWAY IT LOOKS VERY VERY NICE ON THE EXPRESSWAY SAYS ALEX BRITO WHO IS 39 YEARS OLD OWNS A CLOTHING FACTORY NEAR HERE AND LAST YEAR HAD GREEN NEONS PUT ON THE UNDERSIDE OF HIS GREEN DODGE VAN YOU DON'T REALLY NOTICE THE TIRES HE ADDS YOU JUST SEE THE CAR FLOATING ABOVE THE GROUND LIKE A SPACESHIP AS THE 20TH CENTURY DRAWS TO A CLOSE PROFOUND ADVANCES ARE TAKING PLACE IN HUMANITY'S QUEST TO PUT NEON ON WHEELS THE EFFORTS ARE CENTERED IN SOUTH FLORIDA ALONG A NEON CAPITAL AND THE CUTTING EDGE OF BIZARRE WHERE AN INDUSTRY OF SORTS IS EMERGING BUT THE TREND IS SPREADING TO NORMAL PLACES AS WELL JOPLIN MO FOR EXAMPLE OH THEY'RE GREAT SAYS TINO MEZZA A 17YEAROLD SENIOR AT JOPLIN HIGH SCHOOL WHO JUST GOT GREEN NEONS FOR HIS LOWRIDER TRUCK THE BOTTOM OF WHICH IS ABOUT 2 1/2 INCHES OFF THE GROUND AT NIGHT YOU TURN THEM ON AND DRIVE AROUND YOUR NEIGHBORHOOD IF YOU TURN OFF YOUR HEADLIGHTS IT LOOKS LIKE A SPACESHIP GOING BY HE ADDS IT'S PRETTY NEAT IT'S GETTING NEATER THE LATEST RAGE IS NEON LICENSEPLATE FRAMES THERE IS ALSO INTERIOR NEON TO GO UNDER THE SEATS FOR INSTANCE OR UNDER THE DASH THERE IS MOTORCYCLE NEON AND JUST OUT NEON SPEAKER RINGS TO CIRCLE A VEHICLE'S STEREO SPEAKERS THAT PULSE WITH THE BEAT OF THE MUSIC IT'S A NICE EFFECT SAYS CHRISTOPHER CAMMARANO ADMINISTRATIVE MANAGER OF MIAMIBASED MOTION NEON INC WHICH HAS BEEN MAKING THEM FOR A MONTH OR SO IN HOT PINK AND PURPLE IT PLANS TO ADD OTHER COLORS FROM ITS NEON PALETTE WHICH INCLUDES BLUE PEACH AQUA RED YELLOW AND GREEN NEON HAS LONG BEEN A PART OF THE AUTO WORLD RON ZAPATA OWNER OF GRUNDY NEON IN HIALEAH JUST WEST OF HERE SAYS THAT IN THE LATE 1970S A TYPE OF DRAGSTER KNOWN AS A FUNNY CAR OFTEN USED NEON AS DISTRIBUTOR WIRE THE ENGINE WOULD TURN ON AND AS SOON AS THE DISTRIBUTOR WOULD START DISTRIBUTING ELECTRICITY IT WOULD LIGHT UP THE ENGINE HE SAYS IT WAS VERY NICE IT ISN'T CLEAR WHO FIRST PUT NEON UNDER A CAR BUT STEVE CARPENTER WHO OWNS HIALEAH'S MR NEON INC SEEMS TO HAVE A GOOD CLAIM HE SAYS THAT FOR THE SHOOTING OF A MIAMI VICE SOUNDTRACK ALBUM COVER IN 1986 HE GOT THE IDEA OF HIDING BLUE NEON LIGHTS UNDER A FERRARI TESTAROSSA SO YOU WOULDN'T SEE THE TUBES JUST THE GLOW HE THINKS THAT MAKES HIM THE PIONEER OF UNDERCAR NEON BUT ADDS THAT AT THE TIME IT WASN'T PRACTICAL TO COMMERCIALIZE IT ALTHOUGH HE NOW MAKES AND SELLS NEON KITS THEY DEVELOPED WHAT THEY CALLED GLOW KITS WITH FOUR PLASTICENCASED NEON TUBES AND A SMALL TRANSFORMER TO BE POWERED BY A CAR'S BATTERY THEY UNVEILED THEIR PRODUCT AT MIAMI'S GRAND PRIX IN APRIL 1991 AND FOLLOWED UP WITH MONTHS OF HEAVYDUTY LOCAL MARKETING BY YEAR END THEY HAD FORMED A SEPARATE CORPORATION MOTION NEON AND SPLIT THEIR NEON AUTO WORK FROM THEIR NEONSIGN BUSINESS BUSINESS BOOMED IN 1991 ROBERTO RODRIGUEZ SAYS MOTION NEON SOLD ABOUT 150000 WORTH OF GLOW KITS IN 1992 HE SAYS SALES SOARED TO 15 MILLION THIS YEAR HE SAYS KIT SALES ARE RUNNING SOME 30 AHEAD OF LAST BUT OVERALL SALES ARE EVEN HIGHER THANKS TO NEW PRODUCTS THE COMPANY HAS DISTRIBUTORS ACROSS THE US AND MR RODRIGUEZ SAYS ABOUT 30 OF SALES COME FROM ABROAD WITH LATIN AMERICA CANADA AND JAPAN BEING BIG MARKETS AN INDUSTRY BEGAN TO SPROUT PIERRE HOFFMAN WHO IS IN TORRANCE CALIF SAYS HE HAD BEEN INSTALLING NEON UNDER HIS OWN VEHICLES AND OTHERS SINCE THE LATE 1980S AS BASICALLY A HOBBY BUT ONCE THINGS STARTED IN FLORIDA HIS BUSINESS SURGEDAND HE SAYS IT'S BEEN GOING LIKE CRAZY EVER SINCE HE NOW IS A DISTRIBUTOR FOR NEONIZE INC A HUNTINGTON PARK CALIF MANUFACTURER MOTION NEON STILL SEEMS TO BE THE INDUSTRY LEADER ALTHOUGH GIVEN THE FRAGMENTED AND PRIVATE NATURE OF THE INDUSTRY IT IS HARD TO BE SURE ANY NEONSIGN MAKER CAN MAKE THESE THINGS SAYS SIGN MAKER RICHARD GOULET WHOSE NUTECH INDUSTRIES INC BASED IN VERNON CONN DOES JUST THAT BUT HE ADDS THAT MOST SIGN MAKERS WON'T BE BOTHERED BECAUSE THERE'S NOT ENOUGH MONEY IN IT UNLESS THEY GO INTO LARGESCALE PRODUCTION BUT IT IS LUCRATIVE ENOUGH THAT LOWPRICED IMPORTS HAVE BEGUN HITTING THE MARKET FROM CHINA ESPECIALLY AND A PRICE WAR OF SORTS IS UNDER WAY UNDERCAR KITS NOW SELL FOR AS LOW AS ABOUT 99 AND AS HIGH AS ABOUT 400 COMPETITORS SAY BARGAINBASEMENT KITS OFTEN ARE SHODDY BUT MAKERS ARE RESPONDING TO THE PRICE PRESSURE FOR INSTANCE MOTION NEON HAS CUT PRICES AND RECENTLY EXTENDED ITS GLOW KIT WARRANTY FROM ONE YEAR TO THE VEHICLE'S LIFETIME EVEN COVERING BREAKAGE WHICH MR RODRIGUEZ SAYS IS NEGLIGIBLE THANKS TO THE HARD PLASTIC COATING AROUND THE TUBES THE LEGALITY OF AUTO NEON VARIES FROM STATE TO STATE OWNERS SOMETIMES RUN UP AGAINST LAWS THAT PROHIBIT CERTAIN COLORS OF LIGHTS ON VEHICLES SUCH AS BLUE WHICH OFTEN IS RESERVED FOR POLICE BUT EVEN WHERE NEON IS LEGAL IT CAUSES A STIR TOUGH FOOTING THE POLICE OFFICERS AROUND HERE YOU KNOW IN KANSAS AND NEBRASKA WHEN THEY SEE SOME CAR GOING DOWN THE STREET WITH LIGHTS UNDERNEATH IT THEY FREAK OUT SAYS PETE SANTORO MOTION NEON'S DISTRIBUTOR IN KANSAS CITY MO THE FIRST THING THEY'VE GOT TO DO IS GO CATCH IT SO YOU KIND OF START WITH THE SALE OF THE PRODUCT BEING ON A TOUGH FOOTING HAVING TO COPE WITH THAT NONETHELESS NEON ATTRACTS SOME SURPRISING CUSTOMERS ALL THE KIDS WANTED IT BUT NOW OLDER PEOPLE ARE GETTING ITPUTTING IT ON THEIR MERCEDES OR THEIR JAG SAYS KENNY SMITH WHO CUSTOMIZES CARS IN PLANTATION FLA AND WHO SAYS HIS OWN TRUCK HAS APPROXIMATELY 170 FEET OF NEON INSIDE AND OUTSIDE THAT INCLUDES THREE COLORS UNDERNEATH THAT PULSE WITH HIS STEREO MR SMITH SAYS HE RECENTLY INSTALLED GREEN NEON UNDER ONE CUSTOMER'S JAGUAR XJ6 AND HOT PINK UNDER ANOTHER'S MERCEDESBENZ 380SL BUT HE SAYS THE OWNERS BALKED AT NEON LICENSE PLATES THEY THINK THAT GETS TACKY HE SAYS 9308230006 930823 P&G'S DIAPER PRICE CUTS DON'T GUARANTEE BARGAINS GETTING THE BEST BUY ON PAMPERS THESE DAYS IS AS CHALLENGING AS CHANGING A NEWBORN BABY'S DIAPER FOR THE FIRST TIME THERE ARE SEVERAL POSSIBLE EXPLANATIONS SOME RETAILERS ARE TRYING TO PROTECT THEIR PRIVATELABEL PRODUCTS WHICH BENEFIT FROM A BIG PRICE GAP OTHERS BOUGHT PAMPERS BEFORE THE LATEST MANUFACTURER PRICE CUT AND DON'T WANT TO LOSE MONEY ON THAT STOCK STILL OTHERS TOOK ADVANTAGE OF A SPECIAL DEAL BEFORE THE PRICE CUTS FACTORED A FAT MARGIN INTO THEIR PROFIT EXPECTATIONS AND CAN'T AFFORD TO LOSE THAT MARGIN NOW THAT THE PRICE IS LOWER THE STORES THEMSELVES AREN'T ESPECIALLY FORTHCOMING WHEN ASKED TO EXPLAIN THE DIAPERPRICE DIFFERENCES THE MANUFACTURERS HAVE BEEN REDOING THE ENTIRE DIAPER AISLE THE LAST FEW MONTHS EXPLAINS A SHOP RITE MANAGER WHO IS QUERIED ABOUT THE STORE'S HIGHER PRICED DIAPER ASKED ABOUT GRAND UNION'S LOWER PRICE A KING'S MANAGER SAYS GRAND UNION HAS MORE BUYING POWER THAN US BECAUSE WE'RE SMALLER THERE'S A LOT OF WHEELING AND DEALING ON THE BUYER'S SIDE A SPOKESMAN FOR P&G WHICH MAKES PAMPERS SAYS SHOPPERS SHOULDN'T FEEL THEY'RE BEING CHEATED WHEN ONE STORE SELLS A GIVEN PRODUCT FOR MORE THAN ANOTHER THE COMPANY BELIEVES RETAILERS ARE IN FACT LOWERING THEIR PRICES BY EQUIVALENT AMOUNTS WHAT OFTEN HAPPENS THOUGH IS THAT A STORE THAT PREVIOUSLY SOLD MORE EXPENSIVE DIAPERS MAY STILL HAVE RELATIVELY HIGHER PRICED DIAPERS EVEN AFTER LOWERING PRICES THE WAY YOU DETERMINE WHETHER PRICE CUTS ARE BEING PASSED THROUGH IS YOU LOOK AT PRE AND POSTPRICING ON THE SAME ACCOUNT A P&G SPOKESWOMAN SAYS RETAILERS SET THEIR OWN SHELF PRICES THEIR PRICING STRATEGY MAY VARY OVERALL WE ARE VERY PLEASED WITH WHAT WE'RE SEEING AS FOR OTHER P&G PRODUCTS SUCH AS LIQUID LAUNDRY DETERGENTS FABRIC SOFTENERS AND DISH SOAP WHOSE PRICES HAVE BEEN SLASHED RECENTLY P&G SAYS IT'S TOO EARLY TO DETERMINE IF THE CUTS ARE BEING PASSED THROUGH TO SHOPPERS 9308230005 930823 INTERNATIONAL DANISH TRADE SURPLUS WIDENS COPENHAGEN DANMARKS STATISTIK THE DANISH NATIONAL STATISTICS AGENCY SAID THE NATION'S TRADE SURPLUS IN MAY WAS AT 31 BILLION KRONER 450 MILLION COMPARED WITH 26 BILLION KRONER IN APRIL 9308230002 930823 TIES THAT BIND FIRED TAMBRANDS CEO WAS UNUSUALLY CLOSE TO A CONSULTING FIRM EMMETT FRIENDS AT PCA HAD ROLE IN HIS EMPLOYMENT THEN ADVISED ON HIS PAY BOARD GAVE ITSELF A RAISE TOO BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OUTWARDLY THE RECENT OUSTER OF TAMBRANDS INC CHAIRMAN AND CHIEF EXECUTIVE MARTIN FC EMMETT SEEMED A TEXTBOOK EXAMPLE OF BOARDROOM ACTIVISM A HANDSON BOARD HOLDING THE BOSS ACCOUNTABLE FOR A FAILED MARKETING STRATEGY BUT INTERVIEWS WITH NUMEROUS CURRENT AND FORMER TAMBRANDS EXECUTIVES DIRECTORS AND OTHERS CLOSE TO THE COMPANY SUGGEST THERE IS MORE TO THE STORY THEY RAISE MURKY ETHICAL ISSUES HINGED ON FRIENDSHIPS BUSINESS RELATIONSHIPS AND ULTIMATELY A BOARD'S ROLE IN POLICING CORPORATE OPERATIONS WHEN MR EMMETT WAS FORCED OUT ON JUNE 1 MARKET SHARE OF THE COMPANY'S TAMPAX TAMPONS HAD DROPPED NEARLY 8 IN A YEAR US UNIT SALES WERE SAGGING IN RESPONSE TO ILLADVISED PRICE INCREASES AND TAMBRANDS SHARES HAD LOST NEARLY A THIRD OF THEIR VALUE IN FIVE MONTHS A FEW WEEKS LATER AMID SPECULATION THAT THE COMPANY WAS FOR SALE CAME A SECOND SHAKEUP IN WHICH TAMBRANDS PRESIDENT AND EMMETT PROTEGE CHARLES J CHAPMAN WAS DEMOTED AND TWO OTHER OFFICERS WERE EASED OUT TAMBRANDS OFFICIALS REPEATEDLY HAVE DECLINED TO BE INTERVIEWED ABOUT MR EMMETT'S DEPARTURE THE FORMER CEO SAYS HIS DIFFERENCES WITH THE BOARD RELATED SOLELY TO THE BUSINESS'S OPERATIONS HOWEVER IMMEDIATELY FOLLOWING HIS DOWNFALL INSIDERS SAY TAMBRANDS ENDED MOST OF ITS CONTRACTS WITH PERSONNEL CORP OF AMERICA A NORWALK CONN HUMANRESOURCES CONSULTING FIRM THAT HAD HAD A ROLE IN MR EMMETT'S LANDING HIS JOB PCA'S TWO PRINCIPALS DAVID R MEREDITH AND JACK L LEDERER ARE LONGTIME FRIENDS OF MR EMMETT'S DURING HIS FOURYEAR TOUR AT TAMBRANDS HE STEERED CONTRACTS WORTH AN ESTIMATED 2 MILLION ANNUALLY TO PCA ON A VARIETY OF PROJECTS INCLUDING COMPENSATION PENSION ADMINISTRATION AND OUTPLACEMENT FORMER PCA EXECUTIVES SAY IN ADDITION THEY SAY MESSRS MEREDITH AND LEDERER WERE PLACED ON THE TAMBRANDS PAYROLL FOR ANNUAL RETAINERS THAT EXCEEDED THE SALARIES OF MOST TAMBRANDS OFFICERS AT A TIME WHEN TAMBRANDS WAS CUTTING ITS WORK FORCE BY A THIRD THE CONSULTANTS' STUDIES SURVEYS AND RECOMMENDATIONS WERE INSTRUMENTAL IN PERSUADING THE TAMBRANDS BOARD TO VOTE ITSELF A PAY INCREASE AND TO AWARD MR EMMETT STOCK OPTIONS AND BENEFITS MORE APPROPRIATE FOR A COMPANY TWICE TAMBRANDS'S SIZE HE GOT OPTIONS TO BUY NEARLY 600000 TAMBRANDS SHARES OVER THE YEARS IN DECEMBER HE EXERCISED OPTIONS FOR 150000 SHARES WHICH HE SOLD AT A PROFIT OF OVER 5 MILLION WHEN A CHIEF EXECUTIVE HIRES AN OUTSIDE COMPENSATION CONSULTANT WHO IN TURN ADVISES THE BOARD ON THE CEO'S REMUNERATION IT IS OR CAN BE AN INCESTUOUS RELATIONSHIP SAYS JUDITH FISHER PUBLISHER OF THE NEWSLETTER EXECUTIVE COMPENSATION REPORTS APPARENTLY CONCERNED WITH APPEARANCES MORE THAN 70 PUBLIC COMPANIES TRACKED BY HER NEWSLETTER MAKE A POINT OF INFORMING SHAREHOLDERS THAT THEIR BOARD'S COMPENSATION COMMITTEE HAS ITS OWN OUTSIDE CONSULTANT BUT DISCLOSURE DOESN'T NECESSARILY MEAN A BOARD POLICES ABUSES IT'S UNFORTUNATELY COMMON THAT NO ONE ON THE BOARD HAS THE CLOUT TO SAY ANYTHING OR IF THEY DO IT'S IN VERY MUTED FASHION SAYS BERNARD BLACK A PROFESSOR AT COLUMBIA UNIVERSITY'S LAW SCHOOL AND AN AUTHORITY ON CORPORATE GOVERNANCE ACCORDING TO PEOPLE CLOSE TO THE SITUATION TAMBRANDS DIRECTORS WERE CONCERNED THAT THE ARRANGEMENT WITH PCA RAISED ETHICAL ISSUES BUT ONLY AFTER PROFITS AND THE STOCK BEGAN TO SLIDE DID THEY TAKE ACTION DIRECTOR HOWARD B WENTZ JR WHO WAS TAPPED TO TAKE MR EMMETT'S PLACE AS CHAIRMAN IN JUNE SUSPENDED PAYMENT OF THE RETAINERS TO MESSRS MEREDITH AND LEDERER AND IS REVIEWING ALL CONSULTING ARRANGEMENTS ESTABLISHED DURING MR EMMETT'S TENURE TAMBRANDS ALSO HAS TERMINATED PCA'S WORK IN COMPENSATION OUTPLACEMENT AND GENERAL MANAGEMENT STRATEGY LEAVING IT PRIMARILY WITH ASSIGNMENTS IN PENSION ADMINISTRATION MR WENTZ DECLINES TO BE INTERVIEWED MR EMMETT CONTENDS THERE WAS NOTHING UNTOWARD ABOUT HIS DEALINGS WITH MESSRS MEREDITH AND LEDERER COMPENSATION OF MANAGEMENT AT TAMBRANDS WAS REALLY TIED TO SHAREHOLDER VALUE WITH COMPLETE BOARD OVERSIGHT AND APPROVAL HE SAYS MESSRS MEREDITH AND LEDERER SAY THE SEVERING OF MOST OF THEIR TAMBRANDS TIES AFTER MR EMMETT'S OUSTER OCCURRED IN THE NORMAL COURSE OF BUSINESS THE TAMBRANDS BOARD CONSTANTLY REVIEWED THE FEES AND PROJECTS OF VIRTUALLY EVERY OUTSIDE CONSULTANT SAYS MR MEREDITH I THINK ANYTHING THAT POINTS IN THE DIRECTION OF IMPROPRIETY IS REALLY OUT OF LINE THE RELATIONSHIP BETWEEN MR EMMETT AND THE TWO CONSULTANTS DATES BACK TO THE MID1970S WHEN MESSRS MEREDITH AND LEDERER CONDUCTED A COMPENSATION STUDY AT THE FORMER STANDARD BRANDS INC MR EMMETT HELD VARIOUS EXECUTIVE POSTS AT STANDARD BRANDS BEFORE BECOMING ITS PRESIDENT AND CHIEF OPERATING OFFICER IN 1980 THE TRIO DEVELOPED A PERSONAL FRIENDSHIP REGULARLY DINING AND GOLFING TOGETHER AND A DAUGHTER OF MR EMMETT'S WORKED AS AN INTERN AT PCA IN THE LATE 1980S WHEN STANDARD BRANDS MERGED WITH NABISCO CORP IN 1981 MR EMMETT BECAME SENIOR EXECUTIVE VICE PRESIDENT AT NABISCO BRANDS MR EMMETT SAYS HE REFERRED PCA TO NABISCO EXECUTIVES AND THE CONSULTANTS WON A CONTRACT FOR EXECUTIVE COMPENSATION AND DOWNSIZING PROJECTS IN 1984 WHEN MR EMMETT LEFT TO BECOME CHAIRMAN OF SECURITY PACIFIC CORP'S SECURITY PACIFIC BURNS FRY INVESTMENTBANKING SUBSIDIARY IN NEW YORK PCA GOT A COMPENSATION STUDY CONTRACT THERE IN 1988 MR MEREDITH SAYS A BUSINESS ACQUAINTANCE TAMBRANDS DIRECTOR ROBERT M WILLIAMS WAS LOOKING FOR SOMEONE TO DO A STUDY OF TAMBRANDS'S MOVES TO DIVERSIFY BEYOND THE TAMPAX BUSINESSVENTURES SPEARHEADED BY THENCEO EDWIN SHUTT MR WILLIAMS WAS A VOCAL OPPONENT OF THE DIVERSIFICATION AND PEOPLE FAMILIAR WITH HIS THINKING AT THE TIME SAY HE WAS RESTLESS WITH TAMBRANDS'S SLUGGISH STOCK WHICH LANGUISHED IN THE 29 RANGE MR MEREDITH SAYS HE SUGGESTED MR EMMETT AND ARRANGED AN INTRODUCTION AT MR WILLIAMS'S REQUEST HE DENIES KNOWING THEN THAT MR SHUTT WAS ABOUT TO RESIGN MR WILLIAMS A SUBSTANTIAL TAMBRANDS SHAREHOLDER AND GRANDSON OF A COMPANY COFOUNDER DECLINED INTERVIEW REQUESTS ON JAN 31 1989 MR EMMETT PRESENTED HIS STUDY TO THE BOARD CRITICIZING DIVERSIFICATION INTO SANITARY NAPKINS HOME DIAGNOSTIC TESTS AND HYPOALLERGENIC COSMETICS BOB WILLIAMS BECAME ENAMORED OF MR EMMETT SAYS LYNN SALVAGE THEN A BOARD MEMBER IT WAS ALMOST AS THOUGH MR EMMETT WAS PREORDAINED WHEN TAMBRANDS DECIDED TO REPLACE MR SHUTT AS CHAIRMAN OTHER DIRECTORS HAD RESERVATIONS ABOUT MR EMMETT'S QUALIFICATIONS INCLUDING MS SALVAGE WHO LEFT THE BOARD IN 1991 THE REFERENCE REPORT ON MR EMMETT PREPARED BY ANOTHER EXECUTIVE SEARCH FIRM SPENCER STUART INC MENTIONED HIS PENCHANT FOR HIGH LIVING WHILE AT STANDARD BRANDS AND NABISCO BRANDS FURTHERMORE SIX OF THE EIGHT EXECUTIVES INTERVIEWED FOR THE REPORT NOTED MR EMMETT'S LACK OF MARKETING ABILITY MR EMMETT IS NOT A VISIONARY NOR IS HE A MARKETING STRATEGIST SAYS ONE REFERENCE IN THE REPORT HE IS SIMPLY NOT A CONSUMER MARKETING EXECUTIVE AND IS NOT FIELDORIENTED YET THE BOARD CHOSE NOT TO DISPUTE MR WILLIAMS WHO LED THE SEARCH COMMITTEE AND RECOMMENDED MR EMMETT IT'S VERY RARE TO VOTE AGAINST A SEARCH COMMITTEE'S RECOMMENDATION SAYS MS SALVAGE ADDING THAT MR EMMETT WAS PUT FORWARD AS THE SOLUTION AND THAT WAS IT THE APRIL 1989 SELECTION OF MR EMMETT THEN 54 YEARS OLD WAS CAUSE FOR CELEBRATION AT PCA'S CONNECTICUT HEADQUARTERS DAVE WAS PLEASED AND JACK WAS ECSTATIC RECALLS FORMER PCA PARTNER LESLIE G KELLEY REFERRING TO MR MEREDITH AND MR LEDERER AT ANY ONE TIME PCA USUALLY HAD TWO OR THREE BIG CLIENTS HE SAYS AND AT THAT POINT TAMBRANDS BECAME ONE HERE WAS A CHANCE AT THE GOLDEN GOOSE MR WILLIAMS GAVE PCA ITS FIRST TAMBRANDS ASSIGNMENT PREPARING MR SHUTT'S SEVERANCE PACKAGE AND MORE WORK FOLLOWED BY THE END OF 1989 PCA HAD MODIFIED TAMBRANDS'S BENEFIT PLANS ANALYZED TOP MANAGEMENT'S COMPENSATION AND STARTED OUTPLACEMENT DUTIES IT ALSO RECEIVED A CONTRACT FOR STRATEGIC CONSULTING INCLUDING RESTRUCTURING AND LAYOFFS ACCORDING TO WILLIAM ZILLIOX PCA'S CHIEF FINANCIAL OFFICER UNTIL HE LEFT THE FIRM IN 1991 TAMBRANDS WORK ACCOUNTED FOR 17 MILLION OR 15 OF PCA'S REVENUE IN 1989 THE YEAR MR EMMETT TOOK OFFICE BY 1991 THE ACCOUNT HAD GROWN TO 2 MILLION PCA'S TOTAL REVENUE DECLINED TO 7 MILLION THAT YEAR MAKING TAMBRANDS THE SOURCE OF NEARLY 30 OF PCA'S BUSINESS OTHER FORMER PCA EXECUTIVES CONFIRM THAT THE PAYMENTS CONTINUED AT THOSE LEVELS AT LEAST THROUGH 1992 MR LEDERER OF PCA SAYS THOSE REVENUE NUMBERS AREN'T ACCURATE BUT DECLINES TO PROVIDE OTHERS MR ZILLIOX ALSO SAYS THAT IN THE COURSE OF DOING PRIVATE INVESTMENT WORK FOR MESSRS MEREDITH AND LEDERER IN 1990 HE LEARNED THEY EACH WERE RECEIVING 250000 ANNUAL PAYMENTS FROM TAMBRANDS SEPARATE FROM THE RETAINER PAID TO PCA MR EMMETT SAYS HE SUGGESTED THE ARRANGEMENT TO LOWER PCA'S HOURLY RATES HE DECLINES TO COMMENT ON THE AMOUNT OF THE RETAINERS BUT SAYS MY PHILOSOPHY IS TO HAVE THE BEST AND BRIGHTEST WORKING ON KEY PROBLEMS FOR THE COMPANY MESSRS MEREDITH AND LEDERER ARE THE OWNERS OF PCA AND THESE RETAINERS WOULD HAVE BEEN PAID DIRECTLY TO THEM ANYWAY IN THE FORM OF CONSULTING FEES MR MEREDITH CHARACTERIZES THE INDIVIDUAL RETAINERS AS VERY COMMON IN HIS BUSINESS AND SAYS THEY WERE USED TO MAKE SURE JACK AND I PERSONALLY WOULD BE AVAILABLE IN ESSENCE ON DEMAND BY THE TAMBRANDS POLICY COMMITTEE HE DISPUTES THE 250000 FIGURE BUT DECLINES TO GIVE ANOTHER OTHER COMPENSATION SPECIALISTS SAY THE RETAINERS RAISE CONFLICTOFINTEREST QUESTIONS I'VE NEVER HEARD OF A CONSULTANT GETTING PAID ON THE SIDE IN ADDITION TO THE NORMAL FEES CHARGED BY THE FIRM SAYS JUDE RICH PRESIDENT OF SIBSON & CO A PRINCETON NJ HUMANRESOURCES CONSULTING FIRM IF IT'S A PAYMENT DIRECTLY TO THE CONSULTANT AS AN INDIVIDUAL YOU REALLY HAVE TO QUESTION WHETHER IT'S COMPROMISING HIS OR HER INDEPENDENCE MR EMMETT SAYS TAMBRANDS'S BOARD WAS AWARE OF PCA'S RETAINER AS WELL AS THE FEES OF ALL CONSULTANTS TAMBRANDS USED HE SAYS THAT DIRECTORS AT TIMES WERE CONCERNED ABOUT THE HIGH LEVEL OF TOTAL CONSULTING EXPENDITURES WHICH I DID DISCUSS WITH THEM IN SOME DETAIL BUT THEY WERE CONCERNED ABOUT THE GENERAL CONSULTING SUBJECT NOT JUST PCA MR EMMETT ALSO SAYS HE DIDN'T KNOW THE EXACT AMOUNT OF PCA'S BILLINGS BUT IS QUITE POSITIVE THEY WERE LESS THAN 20 OF THE TOTAL CONSULTING FEES PAID BY TAMBRANDS AT THE TIME AMONG ITS CONSULTING DUTIES FOR TAMBRANDS PCA PERFORMED NUMEROUS STUDIES ON EXECUTIVE COMPENSATION MR EMMETT SAYS HIS STOCKOPTION GRANTS WERE PART OF PROGRAMS THAT INCLUDED MANY OTHER TAMBRANDS MANAGERS AND THAT THEY ATTEMPTED TO ALIGN EXECUTIVE PAY AND SHAREHOLDER VALUE HE ALSO SAYS SOME OF THE OPTIONS WERE GIVEN TO HIM IN LIEU OF SALARY BONUS AND/OR RESTRICTED STOCK BUT MS SALVAGE THE FORMER DIRECTOR CONTENDS THERE WERE OTHER OBJECTIVES IN PCA'S MANY RECOMMENDATIONS AND STUDIES PCA DID EVERYTHING IN THEIR POWER TO GET MARTIN THE MOST LUCRATIVE COMPENSATION SCHEME THEY COULD SHE SAYS AND PEARL MEYER A CONSULTANT WHO HAS WORKED WITH THE TAMBRANDS BOARD ON COMPENSATION SINCE THE EARLY 1980S SAYS SHE MODIFIED A NUMBER OF PCAPROPOSED PROGRAMS FOR TOP EXECUTIVES THAT SHE DEEMED TOO GENEROUS SHE SAYS THE CONSULTANTS WERE VERY CAPABLE AND ENERGETIC ADVOCATES ON MR EMMETT'S BEHALF MR MEREDITH OF PCA SAYS THE CONSULTANCY OFTEN RECOMMENDS A REDUCTION IN CASH SALARIES IN FAVOR OF STOCK OPTIONS A WAY TO LINK THE INTERESTS OF MANAGEMENT AND SHAREHOLDERS EVERYTHING WE DID WITH RESPECT TO COMPENSATION PROGRAMS WAS POINTED IN THE DIRECTION OF BUILDING VALUE FOR SHAREHOLDERS HE SAYS PCA'S COMPENSATION ROLE EXTENDED TO THE TAMBRANDS BOARD THE CONSULTING FIRM PRESSED THE CASE THAT OUTSIDE DIRECTORS WERE UNDERPAID ACCORDING TO PCA'S RESEARCH PCA EVENTUALLY SUGGESTED THAT DIRECTORS RAISE THEIR ANNUAL RETAINERS TO 20000 FROM 13000 AND PROVIDE THEMSELVES OPTIONS ON 1100 SHARES ANNUALLY WHICH THEY DID IN 1990 PEOPLE CLOSE TO MR WILLIAMS SAY THAT WHILE THE DIRECTOR AND MAJOR STOCKHOLDER FRETTED ABOUT MR EMMETT'S COZINESS WITH PCA HE COULDN'T ARGUE WITH THE NEW CEO'S EFFECT ON TAMBRANDS'S STOCK IT'S A CLASSIC DILEMMA OBSERVES AN INSIDER MR WILLIAMS WAS VERY UNCOMFORTABLE ABOUT WHAT WAS GOING ON BUT HE THOUGHT MARTIN WAS DOING A HELL OF A JOB IT PUT HIM IN A VERY DIFFICULT BIND MR MEREDITH SAYS HE WASN'T AWARE THAT ANYONE ON THE BOARD HAD QUALMS ABOUT PCA'S ROLE AND ADDS THAT PCA HAS GOTTEN REFERRALS FOR WORK AT OTHER COMPANIES THROUGH MR WILLIAMS IN OUR VIEW WE HAD A DIRECT IMPACT ON THE SUCCESS TAMBRANDS HAS ENJOYED SAYS MR MEREDITH HE CREDITS PCA WITH SAVING THE COMPANY 3 MILLION ANNUALLY IN ITS BENEFITS PROGRAMS FROM THE SHAREHOLDERS' STANDPOINT IT WAS HARD TO FAULT MR EMMETT'S PERFORMANCE DURING HIS FIRST TWO YEARS ON THE JOB HE CUT THE PAYROLL THE WORK FORCE WAS REDUCED 31 TO 3300 DURING HIS FOUR YEARS IN OFFICE SOLD OFF THE PERIPHERAL BUSINESSES AND ORCHESTRATED STOCK BUYBACKS LIFTING TAMBRANDS'S EARNINGS AND STOCK THE SHARES WHICH TRADED AROUND 32 ADJUSTED TO REFLECT A 1990 STOCK SPLIT WHEN MR EMMETT TOOK OVER ROSE TO 42 THE NEXT YEAR AND TO 55 BY MAY OF 1991 IN MARCH 1991 MR EMMETT TOLD WALL STREET ANALYSTS THAT TAMBRANDS'S EARNINGS WOULD GROW MORE THAN 15 A YEAR FOR THE NEXT FIVE YEARS THEN HE DECIDED TO CAPITALIZE ON CONSUMERS' BRAND LOYALTY BY RAISING RETAIL PRICES OF TAMPAX ACCORDING TO BONITA AUSTIN AN ANALYST AT LEHMAN BROTHERS TAMBRANDS RAISED THE COST OF ITS TAMPONS 12 TO 15 IN 1990 BY INCREASING RETAIL PRICES AND SLASHING CONSUMER PROMOTIONS BY THE THIRD QUARTER OF 1991 THE COST OF TAMPAX TO CONSUMERS HAD JUMPED ANOTHER 32 AS TAMBRANDS RAISED PRICES AND REDUCED THE NUMBER OF TAMPONS IN A BOX IN MARCH OF THIS YEAR TAMBRANDS RAISED PRICES A FURTHER 35 THE STRATEGY BACKFIRED INSIDERS SAY TAMPAX'S MARKET SHARE BEGAN TO DECLINE WITHIN MONTHS OF THE PRICE RISES IT WASN'T UNTIL MARCH 23 OF THIS YEAR HOWEVER THAT MR EMMETT BEGAN EXPRESSING RESERVATIONS TO ANALYSTS ABOUT ACHIEVING 15 ANNUAL EARNINGS GROWTH THE STOCK WHICH BY THEN HAD TOPPED 63 PLUNGED 11 OVER THE NEXT TWO DAYS IT FELL FURTHER TO 4525 WHEN TAMBRANDS'S FIRSTQUARTER EARNINGS REPORT SHOWED THE COMPANY HAD CUT MARKETING SPENDING BY 19 VS THE FOURTH QUARTER TO SAVE COSTS BY JUNE THE SHARES HAD DRIFTED AS LOW AS 3950 APPROACHING 1990 LEVELS WORSE MARKET SHARE OF TAMPAX WHICH HAD LONG DOMINATED THE 670 MILLION US TAMPON MARKET HAD SLIPPED BELOW 50 A LEVEL NOT SEEN IN YEARS WE KNEW MARKET SHARE WAS DETERIORATING SLOWLY IN THE THIRD AND FOURTH QUARTERS OF 1992 SAYS FLOYD HALL AN OUTSIDE DIRECTOR BUT THE FIRSTQUARTER DROP WAS PRECIPITOUS AND THE FIRST INDICATION THAT WE HAD SIZABLE PROBLEMS MR EMMETT CONTENDS THE PRICE INCREASES WEREN'T A MISTAKE WITHOUT THE RESTAGING THE COMPANY WOULD BE IN DIRE STRAITS TODAY HE SAYS FORMER EXECUTIVES AND PEOPLE CLOSE TO THE BOARD SAY DIRECTORS WERE STUNNED BY MANAGEMENT'S SUDDEN DISCLOSURE THAT THIS YEAR'S SECOND QUARTER WAS GOING TO BE EVEN WORSE THAN THE FIRST WHEN TAMBRANDS SALES SANK 117 PARTICULARLY DISMAYED THEY SAY WAS MR WILLIAMS WHOSE HOLDINGS HAD FALLEN MILLIONS OF DOLLARS IN VALUE OVER THREE MONTHS I BELIEVE THE BOARD WAS SURPRISED RATHER THAN BLINDSIDED MR EMMETT SAYS THIS CAME UPON US VERY VERY QUICKLY IT'S NOT SOMETHING WE SAW COMING DOWN THE ROAD PCA'S MR MEREDITH SAYS MR EMMETT SENT THE CONSULTANTS A LETTER IN MARCH SUGGESTING THAT INSTEAD OF THEIR PERSONAL RETAINERS THEY BE PAID ON A PERDIEM BASIS BUT NOTHING CAME OF IT FROM MARCH TO MAY PCA AND TAMBRANDS'S MANAGEMENT WORKED ON CONTROLLING COSTS AND SHORING UP THE BRAND A PROJECT THAT MR EMMETT SAYS INCLUDED CUTTING CONSULTING COSTS IT BECAME APPARENT THAT MOST OF THE WORK WAS BEHIND US AND WE NO LONGER HAD A NEED FOR A HIGH LEVEL OF CONSULTANTS HE SAYS THAT'S WHY I WROTE THE LETTER ACCORDING TO MR HALL THE DIRECTOR IN MAY THE BOARD ASKED MR EMMETT TO PREPARE A LASTDITCH PLAN TO STRAIGHTEN THE COMPANY OUT AT A SPECIAL JUNE 1 BOARD MEETING CONVENED AT THE BEHEST OF MR WILLIAMS INSIDERS SAY MR EMMETT OUTLINED HIS STRATEGY FOR THREE HOURS BUT SAYS MR HALL IN THE FINAL ANALYSIS THE BOARD SIMPLY DIDN'T AGREE THAT IT WOULD GET US BACK ON TRACK AS RAPIDLY AS WE WANTED MR EMMETT LEFT THE BOARDROOM AT 1130 AM THE MEETING WENT ON ANOTHER 6 1/2 HOURS AND THE NEXT DAY TAMBRANDS ANNOUNCED MR EMMETT'S RESIGNATION MESSRS MEREDITH AND LEDERER SOON WERE NOTIFIED THEIR RETAINERS WOULD END LAST MONTH TAMBRANDS REPORTED A 34 MILLION SECONDQUARTER LOSS AFTER A 203 MILLION RESTRUCTURING CHARGE EARNINGS BEFORE THE CHARGE FELL 41 AND SALES 118 THE STOCK BUOYED BY RUMORS THAT THE COMPANY IS UP FOR SALE REMAINED IN THE 42 RANGE IT CLOSED FRIDAY AT 44375 TAMBRANDS IS NOW SCRAMBLING TO REGAIN LOST GROUND MR WENTZ HAS ANNOUNCED COST CUTS RAISED THE AD BUDGET 50 AND LAUNCHED A NEW TV AD CAMPAIGN THE CEO POST REMAINS VACANT SHAREHOLDER LAWSUITS HAVE BEEN FILED ALLEGING THAT MR EMMETT MISREPRESENTED EARNING PROSPECTS TO REAP A LARGER PROFIT ON HIS DECEMBER EXERCISE OF STOCK OPTIONS HE HAS NO COMMENT ON THE SUITS WHICH ARE PENDING IN NEW YORK FEDERAL DISTRICT COURT MR EMMETT MEANWHILE HAS NEGOTIATED HIS SEVERANCE PACKAGE HE ALSO HAS 10 YEARS TO EXERCISE HIS REMAINING 450000 STOCK OPTIONS A PCAPROPOSED EXTENSION THAT THE BOARD ENACTED LAST YEAR MR EMMETT SAYS HE HAS NO AMBITION TO HEAD ANOTHER COMPANY HE WANTS TO GET INVOLVED IN A FEW BUSINESS PROJECTS AND POSSIBLY CHARITY WORK I'D LIKE TO KEEP REASONABLY BUSY BUT NOT TOO BUSY HE SAYS MR EMMETT ALSO HAS FOUND A NEW BERTH HE HAS AN OFFICE AND A SECRETARY AT PCA'S CONNECTICUT HEADQUARTERS BRIAN HEALEY MARKETING CONSULTANT FORMER SENIOR VICE PRESIDENT OF SARA LEE CORP JOHN LOUDON CHAIRMAN OF CANEMINISTER LTD HL TOWER CHAIRMAN OF STANHOME INC 9308230001 930811 LAW LEGAL BEAT JOURNALISTS WHO FAIL TO DISGUISE SOURCE AS PROMISED CAN BE SUED BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL JOURNALISTS WHO PROMISE TO MASK THE IDENTITY OF A SOURCE BUT FAIL TO DO SO EFFECTIVELY CAN BE SUED FOR BREACH OF CONTRACT A FEDERAL APPEALS COURT IN MINNESOTA RULED THE OPINION HANDED DOWN BY THE EIGHTH US CIRCUIT COURT OF APPEALS IN ST PAUL IS EXPECTED TO OPEN THE DOOR FOR MORE LAWSUITS AGAINST NEWS ORGANIZATIONS THE RULING APPLIES THE SAME LEGAL PRINCIPLES ADOPTED IN AN EARLIER MINNESOTA CASE INVOLVING JOURNALISTS WHO NAMED A SOURCE AFTER PROMISING NOT TO BUT THE CONTEXT OF THE CURRENT CASE IS SO MUCH MURKIER THAT JOURNALISTS MAY HAVE A TOUGH TIME DETERMINING WHETHER THEY ARE SUBJECTING THEMSELVES TO POTENTIAL LIABILITY IN THE CASE A REPORTER FOR GLAMOUR MAGAZINE PROMISED TO MASK THE IDENTITY OF A FEMALE LAWYER IN MINNEAPOLIS WHOM SHE INTERVIEWED FOR A STORY ABOUT SEXUAL ABUSE BY THERAPISTS THE REPORTER USED A DIFFERENT NAME BUT LEFT IN SO MANY OTHER DETAILS THAT THE SOURCE'S IDENTITY WAS EFFECTIVELY REVEALED THE DECISION HANDED DOWN MONDAY FOUND THAT GLAMOUR AND ITS REPORTER CLAUDIA DREIFUS CAN BE SUED FOR FAILURE TO HONOR A PROMISE TO SOMEONE WHO HAVING RELIED ON IT WAS SUBSEQUENTLY DAMAGED THE LEGAL THEORY IS KNOWN IN CONTRACT LAW AS PROMISSORY ESTOPPEL LAWYERS SAID THE DECISION MAY CREATE PROBLEMS FOR JOURNALISTS BECAUSE PROMISES TO MASK OR CHANGE IDENTITIES ARE LESS CUT AND DRIED THAN PROMISES TO KEEP A SOURCE OUT OF A STORY ALTOGETHER WHAT WE HAVE TO BE CONCERNED ABOUT IS WHERE STATE LAW BECOMES A HAPPY HUNTING GROUND FOR PEOPLE WHO TRY TO IMPOSE ON A CONVERSATION WITH A REPORTER SOME KIND OF CONDITION THAT JUST WASN'T THERE SAID P CAMERON DEVORE A FIRST AMENDMENT EXPERT AT DAVIS WRIGHT TREMAIN IN SEATTLE I FIND THAT TROUBLESOME THE CASE WAS FILED ON THE PLAINTIFF'S BEHALF BY MINNEAPOLIS ATTORNEY ELLIOT ROTHENBERG WHO WAS ALSO THE LAWYER IN THE EARLIER CASE ON PROMISES OF CONFIDENTIALITY THAT CASE AGAINST THE MINNEAPOLIS STARTRIBUNE AND ST PAUL PIONEER PRESS WHICH WAS ARGUED TO THE SUPREME COURT ULTIMATELY ESTABLISHED THAT JOURNALISTS CAN BE SUED UNDER STATES' CONTRACT LAWS FOR BREAKING SUCH OVERT PROMISES THERE WAS NO DISPUTE IN THE EARLIER CASE THAT A PROMISE NOT TO PUBLISH THE NAME WAS VIOLATED OR THAT THE PLAINTIFF SUFFERED DAMAGES AS A RESULT BUT IN THE CURRENT CASE GLAMOUR CONTENDS THAT ITS REPORTER PROMISED VAGUELY ONLY THAT SHE WOULD DO SOME MASKING WHILE MR ROTHENBERG'S CLIENT SAYS SHE WAS ASSURED SHE WOULDN'T BE IDENTIFIED OR IDENTIFIABLE IN THE ARTICLE THE SOURCE GAVE INTIMATE DETAILS OF HER ABUSE AS A VICTIM OF INCEST AND LATER BY HER THERAPIST THOUGH HER NAME WAS CHANGED THE SOURCE'S COVER WAS BLOWN WHEN GLAMOUR IDENTIFIED HER AS SERVING ON A STATE TASK FORCE THAT HELPED DRAFT STATE CRIMINAL LAWS AGAINST PATIENTTHERAPIST SEX ONLY ONE WOMAN SERVED ON THE TASK FORCE AS A RESULT OF THE PUBLICITY MR ROTHENBERG MAINTAINS HIS CLIENT SUFFERED SUCH SEVERE EMOTIONAL DISTRESS THAT SHE LOST HER JOB GLAMOUR CONTENDED IN ITS DEFENSE THAT THE PROMISE WAS TOO VAGUE AND INDEFINITE TO AMOUNT TO AN ENFORCEABLE CONTRACT THE TRIAL JUDGE IN THE CASE AGREED RULING THAT REPORTERS GENERALLY HAVE NO WAY OF KNOWING WHAT DETAILS MIGHT MAKE THEIR SOURCES IDENTIFIABLE TO OTHERS BUT THE THREEMEMBER FEDERAL APPEAL PANEL UNANIMOUSLY REJECTED THAT ARGUMENT RULING THAT THE PROMISE WAS SUFFICIENTLY SPECIFIC AND DISTINCT ADVANCE PUBLICATIONS INC'S CONDE NAST PUBLICATIONS INC UNIT WHICH OWNS GLAMOUR DECLINED TO COMMENT THE FEDERAL RULING APPLIES MINNESOTA STATE LAW SO IT IS ONLY BINDING IN THAT STATE BUT THE PRINCIPLES THE COURT ESTABLISHED WILL CARRY MUCH FURTHER BECAUSE STATE LAWS ON IMPLIED CONTRACTS ARE FAIRLY UNIFORM FROM STATE TO STATE MEDIA LAWYERS POINT OUT HOWEVER THAT MOST JOURNALISTS ARE ALREADY CAREFUL ABOUT HONORING THE CONFIDENTIALITY AGREEMENTS THEY REACH WITH SOURCES I THINK THE JOURNALISTS I HAVE COUNSELED REGARD THOSE PROMISES AS VERY VERY IMPORTANT AND TO BE LIVED UP TO EVEN TO THE EXTENT OF SERVING TIME IN JAIL RATHER THAN BREACH THEM SAID GREGORY M HARVEY OF THE PHILADELPHIA LAW FIRM MORGAN LEWIS & BOCKIUS AT FIRST MR ROTHENBERG'S EARLIER VICTORY ESTABLISHING CONTRACT LIABILITY AGAINST JOURNALISTS WAS WIDELY FEARED BY NEWS ORGANIZATIONS BUT THE RULING DIDN'T ULTIMATELY RESULT IN A FLOOD OF LITIGATION ONE REASON IS THAT MANY STATE CONSTITUTIONS OFFER STRONGER FREESPEECH PROTECTION THAN MINNESOTA ANOTHER IS THAT IT IS DIFFICULT FOR PLAINTIFFS TO PROVE THEY HAVE BEEN DAMAGED MONETARILY BY A BREACH OF A PROMISE OF CONFIDENTIALITY SO FAR COURTS HAVE FOUND THAT A DAMAGED REPUTATION ISN'T SUFFICIENT TO SUSTAIN SUCH A SUIT WASHINGTON'S SEXUALPREDATOR LAW PERMITTING AUTHORITIES TO INDEFINITELY CONFINE PERSONS CONSIDERED TO BE HABITUAL SEX CRIMINALS WAS UPHELD BY THE STATE'S SUPREME COURT IN A 63 DECISION THE COURT RULED THE LAW DIDN'T VIOLATE DETAINEES' CONSTITUTIONAL RIGHTS TO DUE PROCESS THE STATUTE PASSED IN 1990 AMID OUTRAGE OVER SEVERAL HIGHLY PUBLICIZED SEX CRIMES HAS DRAWN OPPOSITION FROM CIVIL LIBERTARIANS AS WELL AS STATE AND NATIONAL PSYCHIATRIC ORGANIZATIONS WHICH CHALLENGED THE LAW'S PRESUMPTION THAT SEX CRIMINALS ARE MENTALLY ILL AND CAN BE CURED THROUGH TREATMENT DURING CONFINEMENT SEVERAL STATES HAVE INDICATED INTEREST IN PASSING SIMILAR LAWS IF WASHINGTON'S STATUTE IS UPHELD DESPITE ITS DECISION THE COURT ORDERED THE RELEASE OF VANCE CUNNINGHAM ONE OF 21 DETAINEES HELD UNDER THE STATUTE THE PANEL SAID THE STATE FAILED TO SHOW MR CUNNINGHAM WAS DANGEROUS MR CUNNINGHAM'S CASE WAS THE FOCUS OF A FRONTPAGE ARTICLE ON THE SEXUALPREDATOR LAW LAST YEAR IN THE WALL STREET JOURNAL IN A DISSENT THREE MEMBERS OF THE STATE'S HIGH COURT WROTE THAT BY PERMITTING CONFINEMENT OF THOSE PERCEIVED TO BE A THREAT THE LAW IN EFFECT SETS UP AN ORWELLIAN DANGEROUSNESS COURT' A TECHNIQUE OF SOCIAL CONTROL FUNDAMENTALLY INCOMPATIBLE WITH OUR SYSTEM OF ORDERED LIBERTY GUARANTEED BY THE CONSTITUTION ROBERT BOUCHOWITZ HEAD OF THE PUBLIC DEFENDER'S OFFICE THAT REPRESENTED MR CUNNINGHAM SAID THE DECISION WOULD BE CHALLENGED EITHER IN FEDERAL DISTRICT COURT OR IN THE US SUPREME COURT WHO'S NEWS KENNETH A CLARK FORMERLY GENERAL COUNSEL AT MAXTOR CORP HAS REJOINED PALO ALTO CALIF LAW FIRM WILSON SONSINI GOODRICH & ROSATI MR CLARK IS A PARTNER IN THE LAW FIRM'S INTELLECTUAL PROPERTY AND TECHNOLOGICAL PRACTICE GROUP MR CLARK SERVED ONE YEAR AS GENERAL COUNSEL AT MAXTOR A SAN JOSE CALIF DISKDRIVE MAKER GAY ADOPTION RULING THAT A CHILD SHOULD HAVE TWO PARENTS EVEN IF THEY ARE BOTH FEMALE A NEW JERSEY JUDGE APPROVED THE ADOPTION OF A THREEYEAROLD GIRL BY A LESBIAN COUPLE THE ASSOCIATED PRESS REPORTED ONE OF THE WOMEN HAD GIVEN BIRTH TO THE CHILD AFTER ARTIFICIAL INSEMINATION THE JUDGE'S DECISION ONE OF THE FEW WRITTEN RULINGS IN GAY ADOPTION CASES ALLOWS THE CHILD RIGHTS TO SOCIAL SECURITY BENEFITS AND INHERITANCE FROM BOTH WOMEN BILL RICHARDS CONTRIBUTED TO THIS ARTICLE A LEGAL BEAT COLUMN IN AUG 11 EDITIONS INCORRECTLY REPORTED THAT ONLY ONE WOMAN SERVED ON A MINNESOTA TASK FORCE INVESTIGATING SEXUAL ABUSE THE ARTICLE INVOLVING A SUIT AGAINST GLAMOUR MAGAZINE SHOULD HAVE SAID THERE WERE OTHER WOMEN ON THE TASK FORCE BUT ONLY ONE FEMALE LAW STUDENT OR LAWYER 9308230055 930723 STATUS SYMBOLS STAYATHOME MOMS ARE FASHIONABLE AGAIN IN MANY COMMUNITIES FORMER PROFESSIONAL WOMEN BRING COMPETITIVE EDGE TO BAKE SALES THE PTA ARE THEIR KIDS BETTER OFF BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL MARIETTA GA JAN TOUCHSTONE A FORMER INSURANCE MANAGER IS LIVING THE LIFE SHE ONCE VOWED TO AVOID A RECENT MORNING FINDS HER METICULOUSLY TAPING CHILDREN'S ART TO A WALL FOR A PTA DISPLAY AT SOPE CREEK ELEMENTARY SCHOOL WHERE HER TWO DAUGHTERS ARE STUDENTS SHE HAS JUST ORGANIZED A FUN RUN STAFFED BY 50 VOLUNTEERS SOMETIMES SHE SPENDS HOURS DECORATING COOKIES THESE DAYS THOUGH FULLTIME MOTHERHOOD HAS BECOME DOWNRIGHT CHIC IN HER CIRCLE IN THE '80S YOU WERE MORE DEFENSIVE ABOUT BEING A STAYATHOME MOM SHE SAYS I FEEL JUSTIFIED IN DOING IT NOW A SURPRISING VICTOR IS EMERGING IN THE MOMMY WARS THAT ONGOING BATTLE BETWEEN THOSE WHO WORK OUTSIDE THE HOME AND THOSE WHO DON'T IN POCKETS OF MIDDLE AND UPPERMIDDLECLASS AMERICA LIKE THIS ONE THE STAYATHOME MOM IS FAST BECOMING THE NEWEST STATUS SYMBOL OF THE CONSCIENTIOUS 1990S STAYATHOME MOTHERS WERE THE NORM OF COURSE IN THE 1950S AND 1960S BUT BY THE 1980S AS WOMEN MADE GAINS IN THE WORK FORCE THE HOUSEWIFE FELL INTO DISREPUTE STAYATHOME MOTHERHOOD WAS VIEWED BY SOME PROFESSIONALS AS A GHETTO OF SORTS FOR WOMEN WHO COULDN'T CUT IT AT THE OFFICE FOR SOME WHAT DO YOU DO BECAME A DREADED QUESTION AND JUST A HOUSEWIFE A PEJORATIVE TODAY WITH MORE THAN 57 OF WOMEN IN THE WORK FORCE STAYATHOME MOTHERHOOD IS BECOMING FASHIONABLE AGAIN IN SOME CIRCLES PARTLY BECAUSE IT IS A LUXURY THAT SO FEW FAMILIES CAN AFFORD THE EQUIVALENT OF SAY A BMW A DECADE AGO IT'S NOT SOMETHING YOU BRAG ABOUT BUT IT'S A SOURCE OF PRIDE SAYS DAVID SECKINGER A MERRILL LYNCH BROKER IN ATLANTA WHOSE WIFE QUIT A PUBLISHING JOB TO RAISE THEIR CHILDREN FRUSTRATION WITH THE WORKPLACE AND WITH THE LACK OF GOOD AFFORDABLE CHILD CARE IS ALSO PROMPTING SOME WOMEN TO GIVE UP CAREERS BUT AS THE PENDULUM SWINGS BACK AND FULLTIME MOTHERS GAIN RESPECT SOME EMPLOYED MOTHERS FEAR THEY ARE LOSING IT AND ARE BEING VIEWED AS BAD MOTHERS BESIDES S DAVID ELLISON A VICE PRESIDENT OF AN ATLANTA ENGINEERING FIRM SAYS HE DOESN'T WANT TO SOUND CRITICAL OF A FORMER COLLEAGUE WHO ENDURED A LONG COMMUTE AND USED DAY CARE FOR HER CHILDREN BUT IF YOU'VE MADE THE COMMITMENT TO HAVE CHILDREN SAYS MR ELLISON WHOSE OWN WIFE STAYS HOME YOU HAVE TO DEVOTE ENERGY TO THEM MR ELLISON SAYS HE IS HAPPY THAT LATELY THERE'S A SHIFT BACK TO NORMAL MORE BASIC VALUES THE SIGNS OF FULLTIME MOTHERING'S RENAISSANCE ARE LEGION A LICENSE PLATE ON A CINCINNATI SEDAN PROUDLY PROCLAIMS MOM INC IN CHICAGO'S FASHIONABLE LAKE FOREST SUBURB SOME WOMEN TALK ABOUT WHAT IS AND ISN'T MC OR MATERNALLY CORRECT A FULLTIME MOTHER WAS A CLASS FAVORITE AT CAREER DAY AT WHEELER HIGH SCHOOL IN SUBURBAN ATLANTA IN FLORIDA MOTOROLA INC HAS BEGUN SELLING BEEPERS IN BIMINI BLUE TO APPEAL TO BUSY MOTHERS THE I'MJUSTAHOUSEWIFE WITH APOLOGETIC OVERTONES IS GOING AWAY SAYS ANN CLURMAN ONE OF THE YANKELOVICH PARTNERS A CONSULTING FIRM THAT STUDIES SOCIETAL CHANGES WOMEN WHO STAYED HOME USED TO SEE IT AS JUST A JOB SHE SAYS NOW THEY SEE THEMSELVES AS CEO OF THE HOUSEHOLD MORE AND MORE OF THEIR EMPLOYED COUNTERPARTS CONSIDER THAT SOMETHING TO ASPIRE TO ACCORDING TO YANKELOVICH'S MONITOR AN ANNUAL SURVEY THAT ROUTINELY ASKS WOMEN IF THEY WOULD QUIT THEIR JOBS FOR 20 YEARS ABOUT 30 OF WOMEN SURVEYED SAID THEY WOULD QUIT IF THEY DIDN'T NEED THE MONEY IN 1989 THE NUMBER GREW TO 38 AND BY 1991 IT HAD JUMPED TO 56 IF YOU BELIEVE THE TRUE MESSAGE OF THE WOMEN'S MOVEMENT BE ANYTHING YOU WANT TO BE YOU CAN STAY AT HOME WITH NO APOLOGIES NECESSARY SAYS MS CLURMAN I THINK A LOT OF WOMEN HAVE COME TO UNDERSTAND THAT POPULAR CULTURE IS TAKING NOTICE CBS'S TOPRATED MURPHY BROWN ENDED THIS SEASON WITH HARDCHARGING TV NEWSWOMAN MURPHY BROWN VOWING TO CUT BACK ON HER WORK SCHEDULE TO SPEND MORE TIME WITH HER SON IN ADVERTISING MOM IS BACK IN THE KITCHEN IN PRIMETIME TV SPOTS FOR THE LIKES OF STATE FARM INSURANCE AND SUNMAID RAISINS THE MOTHER IN A FRIGIDAIRE CO COMMERCIAL COOS TO HER BABY DADDY'S MEETING WITH THE CHAIRMAN TODAY THERE IS EVEN A SUPPORT GROUP BASED IN ELMHURST ILL CALLED FEMALE WHEN IT WAS FOUNDED SIX YEARS AGO IT HAD FOUR MEMBERS AND STOOD FOR FORMERLY EMPLOYED MOTHERS AT LOOSE ENDS TODAY IT BOASTS 2000 MEMBERS NATIONWIDE AND HAS CHANGED ITS NAME TO FORMERLY EMPLOYED MOTHERS AT THE LEADING EDGE MANY OF THE MOST AFFLUENT OF THESE WOMEN DON'T CONSIDER THEMSELVES LATTERDAY JUNE CLEAVERS THIS STAYATHOME MOM DOESN'T CARE ABOUT RING AROUND THE COLLAR SHE IS THE POWER MOM APPROACHING MOTHERHOOD AS SHE ONCE APPROACHED A PROFESSION SHE IS ORGANIZING 50000 COMMUNITY FUNDRAISERS WHILE HOLDING DOWN THE EQUIVALENT OF A PARTTIME JOB IN HER CHILD'S CLASSROOM SHE OFTEN HIRES FULLTIME HOUSEHOLD HELP BECAUSE SHE IS SO BUSY BESIDES THE PAGER POWER MOM OFTEN HAS A CAR PHONE AND CARRIES A DATE BOOK THAT RESEMBLES HENRY KRAVIS'S SAYS DELIA FLORES LACHENAUER A LAKE FOREST ILL MOTHER OF TWO THESE WOMEN COULD RUN GENERAL MOTORS POWER MOMS ARE AN INFLUENTIAL LOT IN COMMUNITIES LIKE SOPE CREEK AN UPPERMIDDLECLASS ENCLAVE WHERE HOUSES OFTEN SELL FOR 300000 AND MORE THE NEIGHBORHOOD IS A MIXTURE OF NORTHERN TRANSPLANTS AND NATIVE SOUTHERNERS STAYATHOME MOTHERS AND MOTHERS WHO WORK AT PLACES LIKE INTERNATIONAL BUSINESS MACHINES CORP AND BELLSOUTH MOBILITY INC ON A TYPICAL AFTERNOON ANN GIKNIS A ONETIME MARKETING MANAGER TOSSES A BASEBALL WITH HER 10YEAROLD SON FRAN BEHIND THEIR WHITEPICKET FENCE ON SHADOWLAKE LANE A FEW BLOCKS AWAY TERESA SIMMONS WHO UNTIL 1986 WAS A SHONEY'S INC PERSONNEL DIRECTOR REMINDS HER BLUEEYED DAUGHTER BROOKE THAT SHE RESEMBLES A PRINCESS NEXT DOOR RUTH ELLISON TEACHES DAUGHTERS STEPHANIE AND SARA HOW TO MAKE A PIE CRUST THERE IS NEARLY UNIVERSAL AGREEMENT AMONG THESE WOMEN THAT THEIR CHILDREN TURN OUT BETTER THAN THOSE OF MOTHERS WHO WORK OUTSIDE THE HOME ONE MOTHER REFERS TO DAYCARE CENTERS AS THOSE LITTLE MEAT FACTORIES SAYS MRS GIKNIS FRANKLY STAYING AT HOME WITH CHILDREN IS AS IMPORTANT AS GOING OUT INTO THE WORKPLACE MRS ELLISON TAKES FREQUENT TURNS AS A STORY MOM READING TO SARA'S CLASS I SEE THE KIDS WHO DON'T HAVE THEIR MOMS AT HOME SHE SAYS THEY DO THINGS TO SEEK ATTENTION LIKE HUG HER OR ASK TO SIT WITH HER IN THE CAFETERIA AT LUNCH TIME SHE RECALLS ONCE REPRIMANDING A NEIGHBOR BOY FOR PELTING A SQUIRREL WITH ROCKS THAT LITTLE BOY'S MOTHER WORKS SHE SAYS DISAPPROVINGLY BUT I CAN BE AROUND TO REINFORCE VALUES JAYNE SECKINGER A FORMER MAGAZINE AD SALESWOMAN BELIEVES HER THREE CHILDREN ARE SMARTER BECAUSE SHE STAYS HOME WITH THEM MY YOUNGEST WAS RETESTED BECAUSE HE SCORED SO HIGH ON A GIFTED PROGRAM EVALUATION SHE SAYS THAT HAS A LOT TO DO WITH MY BEING AT HOME INTENTIONALLY OR NOT POWER MOMS CAN BE DAUNTING TO MOTHERS WHO MUST OR WANT TO WORK OUTSIDE THE HOME IT CAN BE VERY INTIMIDATING SAYS NANCY GALLAGHER A SOPE CREEK MOTHER AND PARTTIME IBM SYSTEMS ANALYST MRS GALLAGHER RECALLS HOW SOPE CREEK ELEMENTARY CALLED TO TELL HER THAT HER EIGHTYEAROLD DAUGHTER MAGGIE WAS SICK THE CLINIC IS STAFFED BY STAYATHOME MOMS AND I FELT GUILTY SAYING GIVE HER AN ASPIRIN' THEY'LL THINK OH SHE'S A WORKING MOTHER' MRS GALLAGHER SAYS THOUGH IT WASN'T A SERIOUS ILLNESS SHE LEFT WORK TO PICK UP HER DAUGHTER ANYWAY THE GROWING STIGMA ATTACHED TO MOTHERS WITH CAREERS IS RUBBING OFF ON SOME OF SOPE CREEK'S CHILDREN IT IS OF LITTLE CONSEQUENCE TO EIGHTYEAROLD ALEX COGGIN THAT HIS MOTHER CELESTE HAS CARVED OUT A CAREER AS A SUCCESSFUL DENTIST HE THINKS SHE IS TOO BUSY I WISH SHE COULD BE A STORY MOM MORE OFTEN HE SAYS AND WHILE ALEX IS THRIVING IN THE AFTERSCHOOL PROGRAM HE ATTENDS UNTIL HIS PARENTS CAN COME PICK HIM UP THE PROGRAM IS VIEWED WITH EMBARRASSMENT BY SOME GRADESCHOOLERS I DON'T KNOW HOW THEY GET THROUGH IT SAYS FOURTHGRADER FRAN GIKNIS WHEN HE ARRIVES HOME I GET AN IMMEDIATE WELCOME SAYS THE BOY SO DOES SARA ELLISON WHOSE MOTHER GREETS HER WITH A HUG AT 238 SHARP EACH AFTERNOON AS THE MOTHER AND DAUGHTER DRIVE BY THE SCHOOL AT 6 PM ONE RECENT EVENING CAREER MOMS ARE PICKING UP THEIR YOUNGSTERS IF YOUR MOTHER WORKED THAT'S HOW LATE YOU'D HAVE TO STAY MRS ELLISON TELLS HER DAUGHTER I DON'T WANT TO DO THAT SAYS THE YOUNGSTER EMPLOYED MOTHERS COUNTER THAT THEIR KIDS ARE AT LEAST AS WELL OFF IF NOT BETTER CINDY FOX'S JOB AS DIRECTOR OF REVENUE ENHANCEMENT FOR BELLSOUTH MOBILITY HELPS PAY FOR PRIVATE SCHOOLS AND A HOUSE IN A BETTER NEIGHBORHOOD YOUNG ALEX COGGIN IS IN HIS SCHOOL'S GIFTED PROGRAM AND SHOWS TALENT ON THE PIANO PLUS IS GETTING A REALISTIC PICTURE OF WHAT HE HAS TO DO WHEN HE GROWS UP SAYS HIS MOTHER THE DENTIST STILL THE PRESSURE TO BE MATERNALLY CORRECT WEIGHS HEAVILY ON WORKING MOTHERS THAT IS CLEAR AT SCHOOL BAKE SALES WHERE THE UNWRITTEN RULES OF THE STAYATHOME ETIQUETTE KNOWN AS MC DEMAND BAKING NOT BUYING WHEN MRS GALLAGHER THE IBM ANALYST DIDN'T HAVE THE TIME TO WHIP UP AN ORIGINAL CREATION SHE ONCE BOUGHT AN APPLE PIE THEN SHE TOOK A FORK AND SMASHED IT WRAPPED IT IN FOIL AND PUT IN THE OVEN TO MAKE IT LOOK AUTHENTIC SHE SAYS THE RUSE DIDN'T WORK EVEN AT HALFPRICE THE PIE SAT UNTOUCHED MRS GALLAGHER FINALLY BOUGHT IT BACK HERSELF FEELING LIKE AN UNFIT MOTHER I'D RATHER HAVE GIVEN THEM THE MONEY AND HAVE THEM LEAVE ME ALONE SHE SAYS NOT THAT THE POWER MOMS ALWAYS SPEND THAT MUCH MORE TIME WITH THEIR CHILDREN SINCE KEEPING BUSY IS ALSO MC MRS GIKNIS HAS RUN SOME VOLUNTEER PROJECTS THAT WOULD HAVE AMOUNTED TO SMALL BUSINESSES AS HEAD OF SOPE CREEK ELEMENTARY'S ANNUAL GIFTWRAP FUNDRAISER THIS YEAR SHE MARSHALED A SALES FORCE OF 900 CHILDREN AND THEIR PARENTS AND THEN GOT THEM TO HAWK 50000 WORTH OF PAPER RIBBONS AND TISSUE WHICH PRODUCED ENOUGH PROFITS TO FUND HALF THE PTA'S ANNUAL BUDGET SHE ALSO ORGANIZED THE FALL FESTIVAL A FUNDRAISER WITH 60 CRAFT BOOTHS PONY RIDES AND A DUNKING TANK I PUT AT LEAST 1000 HOURS INTO THAT SHE RECALLS MRS SECKINGER THE FORMER MAGAZINE AD SALESWOMAN WHO QUIT HER JOB IN 1983 HAS THROWN HERSELF INTO SO MANY ACTIVITIES THAT SHE NEEDS A RETINUE OF AU PAIRS HOUSEKEEPERS AND GARDENERS HER CALENDAR IS PACKED WITH JUNIOR LEAGUE EVENTS PTA BOARD MEETINGS AND BROWNIE TROOP ACTIVITIES SHE VOLUNTEERS AT THE SCHOOL OFFICE AND HELPS MAKE BRUNCH ONCE A MONTH FOR THE TEACHERS PLUS THERE IS TRAVEL WITH HER HUSBAND DAVID THE MERRILL LYNCH STOCKBROKER FOR WHOM SHE RECENTLY ORGANIZED A GOLF PARTY OF 150 BUSINESS ASSOCIATES I NEVER SIT DOWN SHE SAYS IN QUIETER MOMENTS SOME FULLTIME MOTHERS WONDER WHETHER THEY ARE SIMPLY FALLING PREY TO THE SAME KIND OF COMPETITION THAT DOMINATED THEIR CAREERS IN YEARS PAST MRS TOUCHSTONE THE FORMER INSURANCE MANAGER AND MOTHER OF TWO ONCE SPENT SIX HOURS DECORATING SANTA CLAUS COOKIES FOR A SCHOOL EVENT THE PARENTS ARE THE ONLY ONES WHO NOTICE SHE SAYS THE KIDS DIDN'T EVEN NOTICE SOMETIMES I ASK WHO ARE YOU IMPRESSING SEE RELATED LETTERS LETTERS TO THE EDITOR WE'RE TOO BUSY TO FIGHT A MOMMY WAR' WSJ AUG 23 1993 9307230063 YY93 MM08 9308200176 930820 JAPANESE HOUSEHOLD SPENDING TOKYO JAPAN'S HOUSEHOLD SPENDING IN JUNE WAS 312705 YEN 3073 A HOUSEHOLD ON AVERAGE DOWN 13 FROM THE YEAREARLIER MONTH IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE ANNOUNCED REAL HOUSEHOLD SPENDING DISCOUNTS INFLATION SPENDING IN MAY DROPPED 18 AFTER RISING 16 IN APRIL AND 11 IN MARCH BUT SPENDING WAS DOWN THREE MONTHS IN A ROW THROUGH FEBRUARY 9308200175 930820 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 280580 METRIC TONS IN THE WEEK ENDED SATURDAY DOWN 1 FROM 283426 TONS IN THE PRECEDING WEEK BUT UP 34 FROM 271229 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 WAS 8902168 TONS UP 51 FROM 8473203 TONS 9308200174 930820 INTERNATIONAL SOUTH KOREAN JOBLESS RATE UP SEOUL SOUTH KOREA SOUTH KOREA'S JOBLESS RATE IN THE SECOND QUARTER OF THIS YEAR STOOD AT A SEASONALLY ADJUSTED 31 OF THE LABOR FORCE THE HIGHEST LEVEL SINCE THE SECOND QUARTER OF 1987 THE ECONOMIC PLANNING BOARD SAID THE HIGHER RATE WAS ATTRIBUTED TO THE REDUCTION OF MANPOWER BY SOUTH KOREA'S CONGLOMERATES TRIGGERED BY A PROLONGED ECONOMIC SLOWDOWN AND ONGOING INDUSTRIAL RESTRUCTURING 9308200173 930820 NEW ZEALAND CAR REGISTRATIONS WELLINGTON NEW ZEALAND THE NUMBER OF NEW CARS REGISTERED IN NEW ZEALAND ROSE 75 TO 4777 IN JULY FROM 4443 IN JUNE ACCORDING TO GOVERNMENT FIGURES NEW ZEALAND POST LTD A STATEOWNED AGENCY IS RESPONSIBLE FOR THE DATA 9308200172 930820 CANADIAN TRADE SURPLUS NARROWS OTTAWA CANADA'S TRADE SURPLUS NARROWED SLIGHTLY IN JUNE TO 913 MILLION CANADIAN DOLLARS US6904 MILLION FROM A REVISED SURPLUS OF C929 MILLION IN MAY STATISTICS CANADA A GOVERNMENT AGENCY SAID EXPORTS WERE LITTLE CHANGED IN THE MONTH AT C1466 BILLION AND IMPORTS ROSE 01 TO C1375 BILLION THE US TOOK 80 OF CANADA'S EXPORTS IN JUNE AND SUPPLIED 72 OF CANADA'S IMPORTS CANADA'S TRADE SURPLUS WITH THE US ROSE TO C181 BILLION FROM C168 BILLION IN MAY 9308200171 930820 WHO'S NEWS BDO SEIDMAN BDO SEIDMAN NEW YORK GARY M WETSTEIN 55 YEARS OLD WAS ELECTED TO A SECOND FOURYEAR TERM AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS ACCOUNTING AND CONSULTING CONCERN 9308200170 930820 COCACOLA PACT IN SEYCHELLES ATLANTA COCACOLA CO SAID IT SIGNED A BOTTLING CONTRACT WITH SEYCHELLES BREWERIES TO SELL COCACOLA PRODUCTS IN THE INDIAN OCEAN ISLANDS OF THE SEYCHELLES COKE AND DIET COKE WILL BE SOLD IN THE ISLANDS THIS YEAR THE COMPANY PLANS TO LAUNCH FANTA ORANGE IN 1994 9308200169 930820 RACAL TEAM GETS UK CONTRACT LONDON RACAL ELECTRONICS PLC OF BRITAIN SAID ITS YEOMAN TEAM WON A 25 MILLION 379 MILLION CONTRACT TO RESEARCH THE PROCUREMENT OF A NEW COMBAT NET RADIO SYSTEM FOR THE BRITISH ARMED SERVICES RACAL SAID THAT AN EVENTUAL PRODUCTION CONTRACT IS AT STAKE WITH AN ESTIMATED VALUE OF MORE THAN 1 BILLION THE YEOMAN TEAM WAS FORMED BETWEEN SIEMENS PLESSEY SYSTEMS AND RACAL RADIO THE CONTRACT IS PART OF THE UK MINISTRY OF DEFENSE'S BOWMAN PROGRAM 9308200168 930820 POLITICS & POLICY CLINTON'S SLOW PACE IN MAKING APPOINTMENTS AFFECTS POLICY AT SOME DEPARTMENTS AND AGENCIES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEVEN MONTHS INTO THE CLINTON ADMINISTRATION THE HELP WANTED SIGNS ARE STILL HANGING OUTSIDE MANY DEPARTMENTS AND AGENCIES THE WHITE HOUSE HAS YET TO NOMINATE SOMEONE TO LEAD THE OFFICE OF THRIFT SUPERVISION WHICH REGULATES SAVINGS AND LOANS AND THE FEDERAL DEPOSIT INSURANCE CORP WITH NO REPLACEMENTS NAMED THE FIVEPERSON COMMODITY FUTURES TRADING COMMISSION WILL DWINDLE TO TWO MEMBERS TODAYBOTH REPUBLICAN APPOINTEES THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WHICH REGULATES CAR MAKERS STILL LACKS AN ADMINISTRATOR BUSH IS IN CHARGE OF THE AGENCY FOR ALL INTENTS AND PURPOSES CHARGES CONSUMER CRUSADER RALPH NADER NOR HAS PRESIDENT CLINTON COME UP WITH A NEW CANDIDATE FOR THE TOP CIVILRIGHTS POST AT THE JUSTICE DEPARTMENT THE JOB LANI GUINIER WAS TO HAVE FILLED THE ENVIRONMENTAL PROTECTION AGENCY IS HAVING TO ENFORCE KEY PROVISIONS OF THE CLEAN AIR ACT WITHOUT A TOP AIRQUALITY OFFICIAL AND THE GOVERNMENT IS STILL PRINTING DOLLAR BILLS WITH REPUBLICAN SIGNATURES ON THEM BECAUSE NO NEW TREASURER HAS BEEN NAMED POLITICAL APPOINTMENTS HAVE ALSO BEEN SLOW AT THE REGIONAL LEVEL TOO AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND AT THE EPA NEW BOSSES HAVE BEEN ASSIGNED TO ONLY ONE OF NINE REGIONAL OFFICES MEANWHILE BUREAUCRATS ARE LEFT DEALING WITH SUCH THORNY DECISIONS AS WHETHER TO TAKE OVER THE PHILADELPHIA HOUSING AUTHORITY AND HOW BIG THE BOSTON HARBOR CLEANUP EFFORT NEEDS TO BE IN ALL PRESIDENT CLINTON HAD MADE 354 NOMINATIONS FOR POLITICAL POSTS AS OF LAST WEEK PUTTING HIM BEHIND THE PACES OF PRESIDENTS REAGAN AND CARTER SAYS JAMES PFIFFNER A PROFESSOR OF GOVERNMENT AT GEORGE MASON UNIVERSITY MR CLINTON IS AHEAD OF THE PACE SET BY PRESIDENT BUSHBUT BECAUSE MR BUSH WAS SUCCEEDING A FELLOW REPUBLICAN THERE WAS LESS URGENCY ABOUT PUTTING NEW PEOPLE IN PLACE QUICKLY THE WHITE HOUSE SAYS IT IS NEARING ANNOUNCEMENTS ON MANY OF THE REMAINING VACANCIES INCLUDING NHTSA AND THE FDIC THE ONE OFFICE IN THE WHITE HOUSE WHERE NOBODY HAS TAKEN A VACATION IN AUGUST IS PRESIDENTIAL PERSONNEL SAYS JOHN EMERSON DEPUTY DIRECTOR OF THAT OFFICE WHO SAYS THE WHITE HOUSE INTENDS TO HAVE A SLEW OF NOMINATIONS READY WHEN THE SENATE RETURNS FROM ITS AUGUST RECESS EVEN SO THE PACE OF CONGRESSIONAL ACTION ASSURES THAT MANY JOBS WILL BE FILLED BY TEMPORARY PERSONNEL UNTIL NEARLY YEAR END OR LATER THERE ARE A NUMBER OF REASONS FOR THE SLOW PACE SO FAR MR CLINTON IS MAKING MANY OF THE SUBCABINET CHOICES HIMSELF IN AN EFFORT TO PREVENT THE EMERGENCE OF PERSONAL FIEFDOMS TOUGHER ETHICS RULES AND A DRIVE FOR ETHNIC AND GENDER DIVERSITY HAVE MADE IT HARDER TO FIND CANDIDATES PERSONNEL DIRECTOR BRUCE LINDSEY HAS BEEN AWAY FROM THE WHITE HOUSE FREQUENTLY TRAVELING WITH THE PRESIDENT AND THE ADMINISTRATION HAS HELD OFF MAKING SOME REGIONAL APPOINTMENTS SO IT COULD ANNOUNCE ALL FEDERAL APPOINTMENTS TO A GIVEN REGION AT ONCE BUT THE DELAYS ALSO REFLECT THE ADMINISTRATION'S DIFFICULTY STEERING BETWEEN POLARIZED POSITIONS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IS A GOOD EXAMPLE SAFETY ADVOCATES HAVE ARGUED AGAINST NOMINEES WHO HAVEN'T WORKED ON CARSAFETY ISSUES BUT LAWMAKERS SYMPATHETIC TO CAR MAKERS SUCH AS MICHIGAN DEMOCRATIC REP BOB CARR HAVE VOICED DISPLEASURE WITH CANDIDATES WHO HAVE WORKED ON AUTOSAFETY CAMPAIGNS AND PRESIDENT CLINTON IS EAGER TO LISTEN TO AUTO MAKERS BECAUSE HE'S TRYING TO FORGE A COOPERATIVE AGREEMENT WITH THEM TO BUILD BETTER ELECTRIC CARS TRANSPORTATION SECRETARY FEDERICO PENA HAS SUBMITTED THE NAMES OF A NUMBER OF POTENTIAL NHTSA NOMINEES TO THE WHITE HOUSE JUDITH STONE EXECUTIVE DIRECTOR OF ADVOCATES FOR HIGHWAY AND AUTO SAFETY CHRISTOPHER HART A MEMBER OF THE NATIONAL TRANSPORTATION SAFETY BOARD RICARDO MARTINEZ AN EMERGENCYMEDICINE SPECIALIST AT STANFORD UNIVERSITY SO FAR THOUGH THERE'S BEEN NO ACTION ON THEM WITHOUT AN ADMINISTRATOR NHTSA HAS MOVED CAUTIOUSLY THE AGENCY TABLED NEW RULES CHANGING THE FLAMMABILITY STANDARDS OF SCHOOLBUS SEATS THIS YEAR FOR MONTHS IT HELD UP RULES REQUIRING A SAFETY LOCK ON CHILD SAFETY SEATS AND IT'S TAKING A LONG TIME TO DRAFT ROLLOVER PREVENTION RULES PEOPLE ON BOTH SIDES OF THE ISSUE SAY GENERAL MOTORS CORP IN PARTICULAR WILL BENEFIT IF A POTENTIAL RECALL OF ITS 19731987 LARGE PICKUP TRUCKS IS STALLED SINCE EVERY MONTH THERE ARE FEWER OF THE PICKUPS ON THE ROAD EARLIER THIS YEAR THE AGENCY WENT DIRECTLY TO MR PENA FOR APPROVAL BEFORE ASKING GM TO RECALL THE TRUCKS WHICH HAVE SIDESADDLE FUEL TANKS THAT SUPPOSEDLY TEND TO IGNITE AFTER COLLISIONS NHTSA IS TRYING TO WRAP UP MUCH OF ITS FACTFINDING THIS MONTH BUT THE NEXT STEP MAKING A FORMAL DEFECT FINDING AND PREPARING FOR AN INEVITABLE COURT BATTLE WOULD BE A POLITICALLY CHARGED ONE SINCE THE TRUCKS MEET SAFETY STANDARDS THE CASE HAS ENORMOUS ECONOMIC CONSEQUENCES FOR GM AND YOU CAN'T EXPECT CAREER CIVIL SERVANTS TO DECIDE IT SAYS BRIAN O'NEILL OF THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY WHO FEARS THE AGENCY IS ENTERING A SLOWMOTION LIMBO MEANWHILE AT THE NORMALLY FIVEMEMBER COMMODITY FUTURES TRADING COMMISSION TWO COMMISSIONERS NOW CONSTITUTE A QUORUM SO UNDER THE OPENMEETING LAW ANY TIME TWO COMMISSIONERS WANT TO TALK TO EACH OTHER WITHOUT CALLING A PUBLIC MEETING THEY HAVE TO INVITE A LAWYER INTO THE ROOM SO THEY CAN JUSTIFY THE TOPIC AS LEGAL MATTERS THE ACTING CHAIRMAN WILLIAM ALBRECHT WHO LEAVES TODAY SAYS HE'S FRUSTRATED BY THE DELAY YOU NEVER KNOW WHAT'S GOING TO HAPPEN IN THE MARKET HE SAYS BANKING GROUPS HAVE ALSO EXPRESSED CONCERN ABOUT THE LACK OF APPOINTMENTS TO FILL TWO VACANCIES AT THE FDIC THE AGENCY WHICH TENDS TO CHAMPION THE VIEWS OF SMALLER BANKS HAS BEEN RELATIVELY QUIET ON SOME RECENT ISSUES SUCH AS HOW BANKS SHOULD HANDLE THE SELLING OF MUTUAL FUNDS AND WHETHER MINORITYLENDING RULES NEED TO BE TIGHTENED AND SOME BANKERS WERE FRUSTRATED THAT THE FDIC COULDN'T CONVINCE THE GENERAL ACCOUNTING OFFICE AND THE TREASURY DEPARTMENT THAT ITS RESERVES FOR POTENTIAL BANK FAILURES AND THUS THE FEES CHARGED TO BANKS SHOULD BE LOWER AS IT STANDS THOUGH TWO OF THE THREE FDIC MEMBERS ARE TREASURY DEPARTMENT OFFICIALS THERE'S NO DOUBT THAT THE FDIC HAS NOT BEEN OPERATING IN THE INDEPENDENT MANNER IT HAS IN THE PAST SAYS WILLIAM SEIDMAN A FORMER CHAIRMAN OF THE AGENCY IT MIGHT BE THAT THOSE IN THE ADMINISTRATION WHO ARE RUNNING THE FDIC WOULD BE HAPPY TO LEAVE IT THAT WAY OTHER VACANCIES ARE LIMITING THE ADMINISTRATION'S GRASP ON SOME BIG ISSUES THOUGH EVER SINCE THE JUNE SUPREME COURT DECISION THAT CREATED DOUBTS ABOUT THE CONSTITUTIONALITY OF AN UNUSUALLY SHAPED NORTH CAROLINA CONGRESSIONAL DISTRICT DESIGNED TO HELP ELECT RACIAL MINORITIES JUSTICE DEPARTMENT LAWYERS HAVE BEEN LOOKING FOR GUIDANCE ON HOW TO PROCEED IN SIMILAR CASES BUT WITH NO CIVILRIGHTS CHIEF IN PLACE THERE'S NOBODY TO GIVE THAT GUIDANCE ATTORNEY GENERAL JANET RENO ISN'T WELLVERSED IN VOTINGRIGHTS LAW WHILE SOLICITOR GENERAL DREW DAYS WHO IS ALREADY FACES HUGE DEMANDS WITH THE COMING SUPREME COURT TERM AND THE APPEAL OF A RECENT COURT DECISION THAT THREATENS THE NORTH AMERICAN FREE TRADE AGREEMENT THE JUSTICE DEPARTMENT ALSO LACKS A CHIEF ENVIRONMENTAL POLICY MAKER AT A TIME WHEN CONGRESS WANTS MORE ENVIRONMENTAL VIOLATIONS TO BE TREATED AS CRIMES BUT ELSEWHERE AT LEAST SOME ENVIRONMENTAL WORK IS GETTING DONE FOR INSTANCE THE EPA'S REGIONAL OFFICE IN BOSTON THIS SPRING DID BATTLE WITH CONSULTANTS TO A PLANNED SHIPPING TERMINAL ON THE MAINE COAST A PROJECT THAT HAS HAD THE STRONG BACKING OF SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE ONE REASON FOR THE REGION'S BOLDNESS PAUL G KEOUGH IS IN HIS THIRD SEPARATE STINT AS ACTING ADMINISTRATOR BUT FAR MORE TYPICAL OF THE TEMPORARY DECISION MAKERS IS THE ACTING NHTSA ADMINISTRATOR HOWARD SMOLKIN A CAREER CIVIL SERVANT WITH A REPUTATION FOR CAUTION ON CONTROVERSIAL ISSUES I LOOK BOTH WAYS BEFORE I CROSS THE STREET HE ACKNOWLEDGES ADDING BUT AS PART OF A SAFETY AGENCY I SHOULD 9308200167 930820 HONG KONG FIRMS' ORDERS HONG KONG THE VOLUME OF ORDERS ON HAND FOR THE 200 LARGEST MANUFACTURERS IN HONG KONG SHOWED LITTLE CHANGE IN JUNE ON EITHER A MONTHONMONTH OR YEARONYEAR BASIS THE GOVERNMENT SAID COMPARED WITH THE SAME MONTH A YEAR AGO THE CENSUS AND STATISTICS DEPARTMENT SAID ORDERS FOR PLASTICS PRODUCTS AND ELECTRICAL AND ELECTRONIC GOODS INCREASED MODERATELY BUT COMPARED WITH THE MONTH EARLIER NO SECTOR SHOWED SIGNIFICANT CHANGE THE GOVERNMENT ADDED 9308200166 930820 NORFOLK SOUTHERN RETIREMENT NORFOLK VA NORFOLK SOUTHERN CORP SAID IT OFFERED ABOUT 600 OR 13 OF ITS NONUNION WORK FORCE AN OPTION TO RETIRE EARLY THE RAILROAD COMPANY SAID EMPLOYEES 55 YEARS OR OLDER IN 1993 WILL BE ELIGIBLE TO APPLY FOR THE OPTION BETWEEN AUG 23 AND SEPT 17 AND MUST RETIRE OCT 1 PARTICIPATING EMPLOYEES WILL RECEIVE A BONUSEQUIVALENT PAYMENT AS AN INCENTIVE 9308200165 930820 HEALTH CARE BY HELENE COOPER RESEARCH SHOWING THAT DIABETICS BENEFIT GREATLY FROM PAINSTAKING CONTROL OF BLOODSUGAR LEVELS IS ABOUT TO GET A BIG COMMERCIAL APPLICATION ARMED WITH THE RESULTS OF A NINEYEAR FEDERAL STUDY HCAWEST PACES MEDICAL CENTER IN ATLANTA A UNIT OF HCAHOSPITAL CORP OF AMERICA PLANS TO OFFER THE NEW REGIMEN STARTING IN THREE MONTHS UNDER THE PLAN EMPLOYERS AND INSURERS WOULD PAY THE HOSPITAL A LUMP SUM TO ENROLL EACH DIABETIC IN THE AGGRESSIVE TREATMENT PROGRAM RECENTLY ENDORSED BY THE NATIONAL INSTITUTES OF HEALTH NIH RESEARCHERS FOUND THAT INTENSIVE BLOODSUGAR CONTROL WAS FAR MORE EFFECTIVE THAN CONVENTIONAL TREATMENTS IN HELPING TO DELAY THE RAVAGES OF THE DISEASE DIABETICS IN THE NEW REGIMEN MEASURE THEIR BLOOD SUGAR FIVE TO SEVEN TIMES A DAY AND INJECT THEMSELVES WITH INSULIN AS NEEDED UNTIL NOW MOST DIABETICS HAVE TESTED THEIR BLOOD SUGAR AND TAKEN INSULIN ONCE OR TWICE A DAY THE NEW TREATMENT PROGRAM REDUCED DIABETIC EYE PROBLEMS BY 76 SEVERE KIDNEY PROBLEMS BY 35 TO 56 AND CRIPPLING NERVERELATED DISORDERS BY 60 THE STUDY SHOWED WE'VE BEEN WRESTLING WITH THIS FOR 50 YEARS SAYS DR JOHN ANDERSON MEDICAL DIRECTOR AT WEST PACES NOW WE HAVE SUCH REMARKABLE STATISTICAL DATA THAT A SYSTEMATIC APPROACH CAN REDUCE THE COMPLICATIONS OF DIABETES ABOUT 14 MILLION AMERICANS HAVE SOME FORM OF DIABETES A DISEASE IN WHICH INGESTED GLUCOSE IS POORLY HANDLED BY CELLS ALLOWING IT TO BUILD UP IN THE BLOODSTREAM PEOPLE WITH DIABETES OFTEN HAVE A SHORTAGE OF INSULIN A HORMONE PRODUCED BY THE PANCREAS THAT HELPS CONSUME GLUCOSE THE FEDERAL GOVERNMENT ESTIMATES THAT THE COST OF TREATING DIABETIC COMPLICATIONS AMOUNTS TO 40 BILLION A YEAR DR ANDERSON ESTIMATES THAT IT WOULD COST 4000 TO 4500 INITIALLY TO GET AN OUTOFCONTROL DIABETIC STABILIZED AND ON THE PROGRAM ONCE A DIABETIC'S BLOOD SUGAR IS IN BALANCE THE COST PER YEAR WOULD PROBABLY BE AROUND 1500 HIGHTECH GALLBLADDER SURGERY HAS BECOME THE TREATMENT OF CHOICE IN HOSPITALS AND PATIENTS AREN'T COMPLAINING THE TREATMENT CALLED LAPAROSCOPIC CHOLECYSTECTOMY IS A LESS INVASIVE METHOD OF REMOVING GALLBLADDERS THAN CONVENTIONAL SURGERY IN A LAP CHOLY A VIDEO CAMERA AND SURGICAL INSTRUMENTS ARE INSERTED INTO THE ABDOMEN THROUGH BUTTONHOLE INCISIONS AND THE ORGAN IS REMOVED THROUGH ONE OF THOSE INCISIONS LAST YEAR FOR THE FIRST TIME THE NUMBER OF LAP CHOLIES ECLIPSED TRADITIONAL CHOLECYSTECTOMIES IN WHICH THE ABDOMEN IS CUT OPEN WIDE DOCTORS PERFORMED 372000 LAP CHOLIES UP FROM 230000 IN 1991 ACCORDING TO HCIA A HEALTHCARE CONSULTING FIRM IN BALTIMORE AT THE SAME TIME THE NUMBER OF TRADITIONAL CHOLIES FELL TO 198000 FROM 346000 THAT SEA CHANGE AMOUNTED TO SAVINGS OF MORE THAN 1 BILLION HCIA ESTIMATES THE AVERAGE CHARGE FOR A LAP CHOLY AT 8000 IS ABOUT HALF THAT OF A TRADITIONAL CHOLY MOREOVER LAP CHOLY PATIENTS ARE USUALLY RELEASED IN THREE DAYS OR LESS WHILE TRADITIONAL CHOLY PATIENTS ARE HOSPITALIZED TWICE AS LONG IT WAS THE EASIEST SURGERY I'VE EVER HAD SAYS ARCHIE WARNOK A BALTIMORE GUITARIST LAST YEAR HE APPEARED ON STAGE WITH HIS COUNTRY/WESTERN BAND JUST FOUR DAYS AFTER HIS LAP CHOLY I HAD MY TONSILS OUT LAST SUMMER AND THAT WAS A HARDER RECOVERY THE RISE IN THE NUMBER OF LAP CHOLIES SIGNALS THAT LESSINVASIVE SURGERY WILL GROW IN OTHER AREAS INCLUDING HYSTERECTOMIES MEDICAL EXPERTS SAY BUT THAT MAY NOT BE WELCOME NEWS FOR HOSPITALS THIS PUTS THEM BETWEEN A ROCK AND A HARD PLACE SAYS JD KLEINKE A PRINCIPAL WITH HCIA IT'S ANOTHER OMINOUS SIGN ABOUT THE FUTURE NEEDS FOR HOSPITAL CAPACITY BETTER MEDICINE REDUCES THE NEED FOR HOSPITAL SERVICES HE SAYS FLORIDA EMPLOYERS' APPROACH TO CUTTING HEALTH COSTS MAY TURN OUT TO BE A DOUBLEEDGED SWORD COMPANIES IN THE SUNSHINE STATE SIGNIFICANTLY SLOWED THE RATE OF INCREASES FOR HEALTHCARE EXPENDITURES THROUGH MANAGED CARE AND SHIFTING MORE COSTS TO EMPLOYEES A SURVEY BY WILLIAM M MERCER INC REPORTS IN 1992 HEALTHPLAN COSTS FOR FLORIDA EMPLOYERS ROSE ONLY 8 A FAR CRY FROM INCREASES OF 13 IN 1991 AND 20 IN 1990 THE ACTUARIAL FIRM REPORTED FLORIDA EMPLOYERS IN WHOLESALE NUMBERS HAVE MOVED TO MANAGEDCARE ARRANGEMENTS OVER CONVENTIONAL INDEMNITYTYPE HEALTH INSURANCE SAYS ARTHUR L DICKERSON A CONSULTANT WITH WILLIAM MERCER LAST YEAR THE SURVEY SHOWS EMPLOYERS NEARLY DOUBLED THEIR USE OF PREFERREDPROVIDER ORGANIZATIONS OR NETWORKS OF DOCTORS AND HOSPITALS WHO CONTRACT WITH THE EMPLOYER TO CHARGE LESS FOR MEDICAL SERVICES BUT FOR ALL THE HYPE ABOUT THE COST SAVINGS UNDER MANAGED CARE WORKERS PLAYED A BIG ROLE IN REINING IN COSTS BY SHOULDERING MORE MEDICAL BILLS FLORIDA EMPLOYERS SHIFTED MORE COSTS TO EMPLOYEES LAST YEAR RAISING ANNUAL DEDUCTIBLES 16 TO 302 ON AVERAGE MR DICKERSON WARNS THAT THE GROWING POPULARITY OF COSTSHIFTING MAY END UP HURTING EMPLOYERS IN THE LONG RUN ANECDOTALLY AS EMPLOYERS INCREASE THE EXPOSURE TO EMPLOYEES THERE'S A CORRESPONDING INCREASE IN BAD DEBT TO HOSPITALS FROM WORKERS WHO DON'T PAY WHICH IS SHIFTED BACK TO THE EMPLOYERS IN THE FORM OF HIGHER RATES HE SAYS IT'S A VICIOUS CYCLE IN SOUTHERN STATES MORE PRESCRIPTIONS ARE PAID FOR BY INDIVIDUAL PATIENTS THAN IN EASTERN AND WESTERN STATES IN THOSE REGIONS MORE THIRDPARTY PAYERS SUCH AS MANAGEDCARE FIRMS PICK UP THE TAB FOR DRUG PRESCRIPTIONS ACCORDING TO A STUDY BY WALSH AMERICA A PRESCRIPTIONDATABASE SERVICE RESEARCHERS WORKING WITH MICE HAVE DEVELOPED A MOLECULE THAT STOPS THE INFLAMMATORY IMMUNE REACTION COMMON IN SOME FORMS OF ARTHRITIS WITHOUT SIDE EFFECTS ACCORDING TO THE ARTHRITIS FOUNDATION 9308200164 930820 LEISURE & ARTS ON SPORTS PACKERS STOCK UP ON PLUM FREE AGENTS BY FREDERICK C KLEIN GREEN BAY WIS AN INTERESTING JUXTAPOSITION TOOK PLACE LAST WEEK IN THE GREEN HILLS OF EASTERN WISCONSIN AT A RESORT IN THE TOWN OF KOHLER THE OWNERS OF MAJOR LEAGUE BASEBALL TEAMS FAILED TO COME UP WITH A REVENUESHARING PLAN THAT MIGHT HELP LEVEL THE DIAMOND FOR THE SOCALLED SMALLMARKET MEMBERS MEANWHILE IN GREEN BAY 60 MILES TO THE NORTH THE FRUITS OF THE NATIONAL FOOTBALL LEAGUE'S LONGSTANDING REVENUESHARING POLICY WERE ON DISPLAY FOR THE PACKER FANS ALONG THE FENCES ON ONEIDA AVENUE TO SAVOR AS THEIR HEROES WENT THROUGH THEIR SUMMERCAMP EXERTIONS THE LARGEST OF THOSE FRUITS WAS REGGIE WHITE THE MASSIVE DEFENSIVE TACKLE 290 POUNDS OF ROMPIN' STOMPIN' DYNAMITE WAS WIDELY REGARDED AS THE PLUM OF THE NFL'S FIRST FREEAGENT CROP AND TO THE SURPRISE OF MANY HE'D SHUNNED THE METROPOLITAN FLESHPOTS TO CAST HIS LOT WITH THE PACKERS SO TOO HAD SEVEN OTHERS AMONG THE NEWLY LIBERATED SEVERAL WITH ALLPRO CREDENTIALS THAT THE PACKERS COULD WRITE CHECKS FOR ABOUT 30 MILLION TO SNARE THOSE WORTHIES 17 MILLION TO WHITE ALONE FOR FOUR YEARS' WORK WAS TRIBUTE TO THE EVERYONECANPLAY WORLD THE NFL HAS CREATED COULD WE HAVE SIGNED THOSE GUYS WITHOUT REVENUE SHARING ECHOES RON WOLF THE PACKERS' GENERAL MANAGER HELL WITHOUT IT WE WOULDN'T BE HERE AT ALL AND THAT WOULD BE BAD NEWS NOT JUST IN THIS LAKESIDE BURG OF 96000 THE FACT THAT THE PACK ALONE STILL CARRIES THE BANNER OF SMALLTOWN AMERICA IN BIGTIME PROFESSIONAL SPORTS HAS MADE IT THE NO 2 TEAM IF NOT NO 1 IN THE HEARTS OF MANY WHEN GREEN BAY JOINED THE FLEDGLING NFL IN 1921 THE CIRCUIT HAD FRANCHISES IN PLACES LIKE AKRON OHIO ROCK ISLAND ILL TONAWANDA NY AND MUNCIE IND ABOUT ALL THAT'S LEFT OF THOSE CLUBS ARE LEATHER HELMETS IN MUSEUM DISPLAY CASES FOR A LONG TIME THE PACKERS NOT ONLY SURVIVED BUT PROSPERED THEIR 11 LEAGUE TITLES REMAIN THE MOST FOR ANY TEAM FIVE OF THOSE IN 1961 1962 1965 1966 AND 1967 CAME UNDER THE COACHING REIGN OF VINCE LOMBARDI AND CAUSED SOME HERE TO PROCLAIM THEIR CITY TITLETOWN USA THE GODS REACTED PREDICTABLY TO SUCH HUBRIS CASTING THE PACKERS INTO THE ABYSS IN THE 25 SEASONS SINCE ST VINCE DEPARTED THEY WON MORE GAMES THAN THEY LOST IN JUST SIX AND MADE THE PLAYOFFS BUT TWICE THE LAST TIME DURING THE STRIKESHORTENED 1982 CAMPAIGN THE PACK'S OCCASIONAL SHOWS OF LIFE MADE IT THE OBJECT OF ALMOST AS MANY RETURN SIGHTINGS AS ELVIS BUT SOME BELIEVE THE LATEST MAY BE LASTING IT CAME LAST SEASON WHEN UNDER NEW HEAD COACH MIKE HOLMGREN THE TEAM WENT FROM A 36 WONLOST START TO 96 BEFORE LOSING THE FINALE AND A PLAYOFF SPOT TO THE MINNESOTA VIKINGS THEN CAME THE OFFSEASON AND THE ADVENT OF THE LEAGUE'S NEW LABOR CONTRACT WHICH FINALLY GAVE VETERAN FOOTBALLERS THE SAME CRACK AT FREEDOM THAT THE TOILERS IN OTHER SPORTS HAVE LONG ENJOYED IT SURPRISED MANY NFL INSIDERS AS WELL AS FANS THAT THE PACKERS UNDER WOLF EMERGED AS ONE OF THE MOST AGGRESSIVE AND EFFECTIVE BIDDERS IN THE TALENT MARKET THE CHOICE AS WE SAW IT WAS TO PLAY OR FOLD AND WE DECIDED TO PLAY SAYS WOLF WHO'D WORKED FOR THE LOS ANGELES RAIDERS TAMPA BAY BUCCANEERS AND NEW YORK JETS BEFORE COMING TO GREEN BAY IN 1991 WE THOUGHT THE FIRST YEAR'S FREEAGENT CROP MIGHT BE THE BEST EVER AND THAT IF WE WERE SERIOUS ABOUT IMPROVING WE'D BETTER ACT HE ADDS SOME PEOPLE IN THE NFL DIDN'T TAKE US SERIOUSLY AT FIRST JUST BECAUSE WE'RE GREEN BAY BUT WHEN WE SIGNED REGGIE WHITE AWAY FROM THE BIGMARKET TEAMS THAT CHANGED BESIDES MONEY PACKER SELLING POINTS INCLUDED THE COACHING STAFF HEADED BY THE 45YEAROLD HOLMGREN WHO'D PREVIOUSLY CARRIED OFFENSIVE CLIPBOARDS WITH THE CHAMPION SAN FRANCISCO 49ERS THE TEAM'S COMMITMENT TO IMPROVEMENT AND SAYS THE COACH THE FACT GREEN BAY ISN'T NEW YORK LA OR MIAMI THE FIRST TO BUY THE LINE WAS WHITE THE KEYSTONE OF THE PHILADELPHIA EAGLES' FEARSOME DEFENSE THEN HARRY GALBREATH A HIGHLY RATED OFFENSIVE LINEMAN FROM THE MIAMI DOLPHINS OTHER FREEAGENT RECRUITS WERE BILL MAAS A DEFENSIVE LINEMAN FROM KANSAS CITY TUNCH ILKIN AN OFFENSIVE TACKLE FROM PITTSBURGH MIKE PRIOR A DEFENSIVE BACK FROM INDIANAPOLIS MARK CLAYTON A WIDE RECEIVER FROM MIAMI ALLEN PINKETT A RUNNING BACK FROM NEW ORLEANS AND LOUIS CLARK A WIDE RECEIVER FROM SEATTLE THE PACKERS ALSO OBTAINED VETS JOHN STEPHENS A RUNNING BACK AND KEN O'BRIEN A QUARTERBACK IN TRADES FOR DRAFT CHOICES CLARK IS GONE AN EARLY CUT BUT WHITE MAAS PRIOR GALBREATH AND ILKIN ARE EXPECTED TO START WHEN THE PACK OPENS ITS REGULAR SEASON AGAINST THE LA RAMS ON SEPT 5 IN MILWAUKEE AND EXJET O'BRIEN IS LISTED AS THE BACKUP TO BRET FAVRE THE STRONGARMED YOUNG QB WHO LAST YEAR SHOWED SIGNS OF STARDOM THAT'S IN ADDITION TO A HOLDOVER CAST THAT INCLUDES STERLING SHARPE ONE OF THE GAME'S BEST PASS RECEIVERS FLASHY DB TERRELL BUTLER AND KEN RUETTGERS AN EXCELLENT OFFENSIVE TACKLE EVEN THIS LINEUP DOES NOT LEAVE THE PACK ROSTER PROBLEMFREE CHUCK CECIL A SOLID SAFETY WAS A FREEAGENCY LOSS AND RUETTGERS AND TONY BENNETT A CRACK LINEBACKER ARE CONTRACT HOLDOUTS INTEGRATING THE NEW TALENT INTO THE TEAM'S SCHEMES MAY BE PROVING MORE DIFFICULT THAN SOME SUPPOSED AS WITNESSED BY THE CLUB'S 03 RECORD IN PRESEASON PLAY SOME PEOPLE FIGURED THAT WHEN WE SIGNED REGGIE WE WERE ON OUR WAY TO THE SUPER BOWL NOTES HOLMGREN I ONLY WISH IT WERE THAT SIMPLE NONETHELESS OLD PACKERS AND NEW ARE LOOKING OPTIMISTICALLY TOWARD THE NEW CAMPAIGN DETERMINED NOT TO LET ANYTHING SPOIL THE VIEW YEAH I KNOW GREEN BAY'S COLD IN THE WINTER BUT THAT SHOULDN'T BOTHER ME SAYS CLAYTON THE MIAMI REFUGEE WHO'S BEEN TO FIVE PRO BOWLS I'VE PLAYED IN COLD WEATHER BEFORE AND DID OK AND I FIGURE ABOUT ALL THE COLD I'LL SEE HERE'LL BE ON SUNDAYS THE REST OF THE WEEK I'LL JUST RUN FROM MY HOUSE TO MY CAR TO THE INDOOR PRACTICE FIELD THEN BACK AGAIN AT NIGHT HEY I MAY NOT EVEN HAVE TO BUY A COAT 9308200163 930820 REVIEW & OUTLOOK EDITORIAL DOLLARYEN THRILLS JUST AS TRADERS EARLY YESTERDAY WERE PURSUING THE US TREASURYAPPROVED STRATEGY OF UNLOADING DOLLARS THE THEORY BEING THAT A WEAKER DOLLAR WILL BOOST OUR EXPORTS THE FED ABRUPTLY INTERVENED TO PROP UP THE DOLLAR AAAAAHHH THEY ALL SCREAMED AS THE RIDE SUDDENLY REVERSED WITH TREASURY'S INTERNATIONAL AFFAIRS UNDERSECRETARY LAWRENCE SUMMERS OFF TO THE SIDE REMARKING YESTERDAY WE ARE CONCERNED THAT THE RECENT RAPID RISE IN THE VALUE OF THE JAPANESE YEN COULD RETARD GROWTH IN THE JAPANESE AND WORLD ECONOMIES EEEEEEKKKK HOWLED THE MARKETS RECALLING THE RIDE IN THE OPPOSITE DIRECTION BEGUN BY TREASURY SECRETARY BENTSEN FOUR MONTHS AGO WITH THE WORDS I WOULD LIKE TO SEE A STRONGER YEN IT ALL REMINDS US OF THE LATEST AMUSEMENT PARK RIDE CALLED BATMAN A KIND OF ROLLER COASTER WITHOUT SEATS IN WHICH THE RIDERS HIT THE HILLS WITH THEIR FEET DANGLING STRAIGHT DOWN FROM A CHEST HARNESS LOOKS A BIT SCARY FOR OUR TASTE BUT THIS IS WHAT WE GET FROM THE TRADE DEFICIT OBSESSIONS WHICH RETURNED YESTERDAY WITH THE ANNOUNCEMENT THAT THE MERCHANDISE TRADE DEFICIT FOR JUNE ROSE 44 WE'LL BET THAT HAD THE DAZED DOLLARBASHERS AROUND TREASURY MUTTERING WHERE'S THE JCURVE WHERE'S THE JCURVE ONCE AGAIN THIS HOARY NOTION THAT DEVALUING THE DOLLAR WILL DECREASE THE TRADE DEFICIT FALLS FLAT LET'S ALSO NOTE FOR THE RECORD THE CRUDITY OF THE TRADE DEFICIT AS AN INDICATOR SERVICES ARE NOT INCLUDED IF THEY WERE THIS WOULD BEND THE RESULT BACK TOWARD THE US NOR DOES THE CALCULATION TAKE INTO ACCOUNT GOODS MADE BY THE COMPANIES OF EITHER COUNTRY IN THIRD COUNTRIES THIS WOULD TIP THE BALANCE TOWARD JAPAN HOWEVER MISLEADING THE TRADE DEFICIT STATISTIC STILL POSSESSES MAGICAL RESONANCE IN USJAPAN RELATIONS SO LET'S DEAL WITH THAT ISSUE ON ITS FACE SINCE IT'S SUCH A LARGE DRIVER OF THE SORT OF FRANTIC BEHAVIOR WITNESSED YESTERDAY CLEARLY ONE OF THE REASONS THAT THE TRADE IMBALANCE IS GROWING IS THAT JAPAN IS IN A RECESSION WITH CONSUMER SPENDING AND CAPITAL INVESTMENT IN A PROLONGED SLUMP PEOPLE SIMPLY AREN'T BUYING STUFF BUT THEY ARE STILL MAKING IT AND SELLING IT ABROAD NO FIDDLING WITH THE EXCHANGE RATE IS GOING TO CHANGE THIS EXCEPT FOR THE WORSE THERE ARE OF COURSE SCHOOLS OF THOUGHT ON HOW TO DEAL WITH JAPAN ON TRADE ONE IS TO DEPEND ON JAPAN TO WILT BEFORE THE AMERICAN BLUSTER OF QUOTAS THREATS AND CURRENCY MACHINATIONS THE REASONING AROUND THE BELTWAY SALONS IS THAT JAPAN HAS CAVED IN BEFORE AND WILL DO SO AGAIN AND IT'S TERRIFIC POPULIST THEATER AN ALTERNATIVE SCHOOL TO WHICH WE SUBSCRIBE IS TO EMPHASIZE POLITICAL REFORM IN JAPAN THAT REDUCES RATHER THAN ADMIRES THE DISCRETIONARY POWER OF THE BUREAUCRACY PUTTING MORE AUTHORITY INTO THE HANDSAND WALLETSOF CONSUMERS AND CORPORATIONS THAT APPEARS TO BE THE DIRECTION IN WHICH THE NEW POSTLDP GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA IS LEANING NOW AN EMERGENCY MEETING OF JAPAN'S CABINET YESTERDAY REPORTEDLY DECIDED TO PURSUE PLANS TO REDUCE GOVERNMENT BUSINESS REGULATIONS AND POSSIBLY PURSUE A TAX CUT WHICH HAD BEEN HINTED AT DAYS AGO WHILE WASHINGTON CONVENTIONALLY DESCRIBES THIS AS STIMULUS LIKE BLOWING A HOTAIR BALLOON UP AND DOWN WE GUESS IT LOOKS MORE TO US LIKE A DESIRE TO MODERNIZE THE LONGERTERM INCENTIVES IN THE JAPANESE ECONOMY IN TERMS OF GETTING JAPANUS RELATIONS RIGHT THAT'S A MORE PROFITABLE PURSUIT THAN THE US TREASURY TRYING TO FINETUNE THE TURNS ON THE FOREIGNEXCHANGE ROLLERCOASTER MEANWHILE WHEN THE DOLLAR WAS HEADING BELOW 100 AGAINST THE YEN WHAT WERE THE WORLD'S CURRENCY TRADERS SEEING IN US ECONOMIC POLICY AN ADMINISTRATION THAT IS RAISING TAXES ON ITS BEST PRODUCERS FLIRTING WITH THE IDEA OF RAISING AND INDEXING THE MINIMUM WAGE AND EMBARKING ON A GRAND VOYAGE INTO HEALTH CARE REFORM THIS DOES NOT STRIKE US AS BUILDING A BASE FROM WHICH AMERICAN FIRMS CAN COMPETE ABROAD WHEN THE DUST SETTLED YESTERDAY THE DOLLAR STOOD AT 10595 YEN UP FROM 10160 WEDNESDAY WE SUSPECT THAT WHAT THE US ECONOMY NEEDS IS SOMETHING MORE THAN A ONE DAY CHANGE IN THE DOLLAR'S VALUE OF FOURPLUS YEN 9308200162 930820 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES STEPS UP COUNTEROFFENSIVE IN FIGHT WITH INSURERS SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC ACCUSED BY MANY OF THE US'S LARGEST HEALTH INSURANCE COMPANIES OF SUBMITTING HUNDREDS OF MILLIONS OF DOLLARS IN FRAUDULENT PSYCHIATRIC CLAIMS STEPPED UP ITS COUNTEROFFENSIVE WITH SOME LEGAL ACTION AND A MEDIA BLITZ THE HOSPITAL COMPANY CHARGED 19 INSURERS WITH CONSPIRACY CONSUMER FRAUD AND DEFAMATION IN TWO LEGAL ACTIONS FILED IN WASHINGTON ONE IS A NEW SUIT AND THE OTHER AMENDS A COMPLAINT FILED AGAINST THREE OF THE INSURERS 13 MONTHS AGO TOGETHER THE SUITS SEEK 250 MILLION IN ACTUAL DAMAGES PLUS TREBLE DAMAGES FOR WELL OVER A YEAR THE INSURANCE COMPANIES HAVE GONE TO THE MEDIA AND THE COURTS WITH THEIR SIDE OF THE STORY SAID THE COMPANY'S OUTSIDE COUNSEL BOBBY R BURCHFIELD OF WASHINGTON LAW FIRM COVINGTON & BURLING NOW HE SAID IN A CONFERENCE CALL TO REPORTERS NATIONAL MEDICAL IS MOVING AGGRESSIVELY TO TELL ITS SIDE SPECIFICALLY NATIONAL MEDICAL ACCUSED THE COMPANIES INCLUDING AETNA LIFE INSURANCE CO PRUDENTIAL INSURANCE CO OF AMERICA AND METROPOLITAN LIFE INSURANCE CO OF ATTEMPTING TO PROTECT THEIR OWN PROFITABILITY DEFLECTING CRITICISM CONCERNING ESCALATING HEALTHCARE INSURANCE PREMIUMS AND OF TRYING TO COERCE NME INTO AN UNREASONABLY LARGE SETTLEMENT AN ATTORNEY REPRESENTING 13 OF THE INSURERS DENIED THE ALLEGATIONS WE THINK NME'S CONTENTIONS ARE SILLY NME DOESN'T LIKE THAT THE INSURERS ARE HOLDING THE COMPANY TO ACCOUNT FOR ITS ABUSES THE TIMING OF THE FILING SUGGESTS THAT NME IS FEELING INTENSE PRESSURE FROM MANY FRONTS SAID THOMAS BRUNNER A PARTNER AT WILEY REIN & FIELDING IN WASHINGTON MR BRUNNER ALSO SAID THE SUIT APPEARED TO BE AN EFFORT BY NATIONAL MEDICAL TO FORCE CONSOLIDATION OF A LAWSUIT IN TEXAS WITH LITIGATION IN WASHINGTON THE LATEST LEGAL ACTIONS LOOK LIKE A PLOY TO CIRCUMVENT THE REFUSAL OF THE TEXAS COURT TO TRANSFER THE TEXAS CASE TO WASHINGTON THERE'S ABSOLUTELY NO CONNECTION WHATSOEVER BETWEEN THE TEXAS COURT'S ACTION AND NATIONAL MEDICAL'S NEW FILINGS SAID A NATIONAL MEDICAL SPOKESMAN 9308200161 930820 WHO'S NEWS GOLDEN EAGLE GROUP INC GOLDEN EAGLE GROUP INC MIAMI ALEX SUAREZ 39YEAROLD REGIONAL MANAGER OF HARPER GROUP INC WAS NAMED VICE PRESIDENT AIR FREIGHT A NEW POST AT THIS FREIGHT FORWARDER 9308200160 930820 WHO'S NEWS LEVITZ FURNITURE INC LEVITZ FURNITURE INC BOCA RATON FLA RICHARD M CASHIN VICE PRESIDENT OF CITICORP VENTURE CAPITAL WAS ELECTED A DIRECTOR OF THIS FURNITURE RETAILER EXPANDING THE BOARD TO EIGHT MEMBERS 9308200159 930820 WHO'S NEWS BIRMINGHAM STEEL CORP BIRMINGHAM STEEL CORP BIRMINGHAM ALA T EVANS WYCKOFF PRESIDENT OF WYCO INC WAS NAMED A DIRECTOR OF THIS STEEL PRODUCER EXPANDING THE BOARD TO 13 MEMBERS 9308200158 930820 WHO'S NEWS CONE MILLS CORP CONE MILLS CORP GREENSBORO NC JOHN W ROSENBLUM PROFESSOR OF BUSINESS ADMINISTRATION UNIVERSITY OF VIRGINIA WAS NAMED A DIRECTOR OF THIS PRODUCER OF DENIM AND OTHER FABRICS EXPANDING THE BOARD TO 10 MEMBERS 9308200157 930820 FOREIGN EXCHANGE FED ACTION DRIVES DOLLAR'S SURGE AGAINST YEN BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL RESERVE BANK OF NEW YORK AMBUSHED THE FOREIGNEXCHANGE MARKET SENDING WHAT HAD BEEN A SICKLY AND SINKING DOLLAR SURGING AS MUCH AS 52 HIGHER AGAINST THE YEN THREE DAYS AGO AGGRESSIVE CURRENCY TRADERS SPECULATORS AND BIG GLOBAL INVESTORS WERE LOOKING FOR BLOOD PUSHING THE DOLLAR EVER CLOSER TO THE SEEMINGLY MYSTICAL 100YEN LEVEL YESTERDAY IT WAS THEIR BLOOD ON THE FLOOR AS THE FED REPEATEDLY INTERVENED SELLING YEN AND BUYING DOLLARS IN A SUCCESSFUL ONEDAY ATTEMPT TO PROP UP THE US CURRENCY IT WAS PRETTY SCARY IT WAS A PRETTY WILD DAY SAID CHESTER RUBEN A SENIOR FOREIGNEXCHANGE TRADER AT CONTINENTAL BANK IN CHICAGO THE FED SIMPLY CAUGHT THE MARKET NAPPING LATE IN NEW YORK TRADING THE DOLLAR STOOD AT 10590 YEN COMPARED WITH 10160 YEN WEDNESDAY A 42 GAIN THE US CURRENCY ALSO WAS AT 16875 MARKS UP FROM 16800 MARKS A DAY EARLIER THE POUND FELL TO 15045 FROM 15170 ON WEDNESDAY ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10472 YEN AND AT 16926 MARKS TREASURY UNDERSECRETARY LAWRENCE SUMMERS IN A STATEMENT READ TO REPORTERS AT THE TREASURY DEPARTMENT UNDERSCORED THE CLINTON ADMINISTRATION'S INCREASING WORRY ABOUT THE DOLLAR'S SUBSTANTIAL DETERIORATION AGAINST THE YEN WE ARE CONCERNED THAT THE RECENT RAPID RISE IN THE VALUE OF THE JAPANESE YEN COULD RETARD GROWTH IN THE JAPANESE AND WORLD ECONOMIES HE SAID CONVINCED THAT THE US CURRENCY WOULD KEEP FALLING AGAINST THE YEN AS IT HAS BEEN SINCE EARLY THIS YEAR MOST TRADERS AND SPECULATORS HAD SOLD DOLLARS ON A BET THAT THEY WOULD LATER BE ABLE TO BUY THEM BACK AT A LOWER PRICE WHEN THE FED STARTED INTERVENING TRADERS SAID THAT THOSE WHO SHORTED THE DOLLAR DISCOVERED THE CURRENCY MARKETS HAD BECOME VERY ILLIQUID WHEN THE MARKET IS MOVING THE WAY IT WAS IT'S VERY DIFFICULT TO GET A PRICE ON A LARGE AMOUNT OF MONEY SAID DAVID GILMORE A SENIOR FOREIGNEXCHANGE ANALYST AT MCM CURRENCYWATCH A NEW YORK CURRENCY MARKET ADVISORY SERVICE HE ESTIMATED THAT THE FED SPENT 600 MILLION TO 800 MILLION AND POSSIBLY AS MUCH AS 1 BILLION AS IS ITS POLICY THE FED DECLINED TO COMMENT ON ANY OF ITS ACTIVITIES IN THE CURRENCY MARKET IT WAS AS IF A BUNCH OF BIG ELEPHANTS TRIED TO SQUEEZE THROUGH A LITTLE DOOR SAID CONTINENTAL BANK'S MR RUBEN MANY DIDN'T MAKE IT IF YOU WERE POSITIONED THE RIGHT WAY IT WAS AN EASY DAY IF YOU WERE THE WRONG WAY IT WAS SCARY WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK IN NEW YORK CALLED TRADING VERY HECTIC EXTREMELY ACTIVE AND VERY VOLATILE HE ADDED THE FED'S SEVERAL ROUNDS OF INTERVENTION WERE A SIGNAL THAT THE US DOES WANT TO SEE STABILITY IN THE YEN TRADERS AND ANALYSTS SUSPECT THAT THE JAPANESE AND AMERICAN GOVERNMENTS HAVE CUT A DEAL THAT CALLS FOR JAPAN TO REIGNITE DOMESTIC ECONOMIC GROWTH AND POSSIBLY OPEN THE JAPANESE MARKET MORE TO US GOODS IN EXCHANGE FOR US HELP IN PROPPING UP THE DOLLAR THE MARKET COULD WELL WAIT TO SEE WHETHER A USJAPANESE DEAL ON TRADE AND ACCESS TO THE JAPANESE MARKET HAS INDEED BEEN CUT SAID RICHARD WITTEN PARTNER IN CHARGE OF FOREIGNEXCHANGE SALES AT GOLDMAN SACHS & CO NEW YORK IF THERE IS A DEAL THE DOLLAR MAY BEGIN TO RECOVER IF NOT TRADERS MAY BE INCLINED TO SELL IT AGAIN AFTER PUSHING THE YEN TO A POSTWORLD WAR II HIGH OF 10040 YEN TO THE DOLLAR ON TUESDAY AND RECORD HIGHS AGAINST MOST EUROPEAN CURRENCIES TRADERS AND SPECULATORS BACKED OFF THEY WANTED TO SEE WHETHER A KEY JAPANESE CABINET MEETING EARLY THURSDAY PRODUCED POLICY CHANGES DESIGNED TO RECHARGE JAPAN'S ECONOMY THEY ALSO AWAITED THE ANNOUNCEMENT OF THE US TRADE RESULTS FOR JUNE THEY WERE DISAPPOINTED WHILE THE JAPANESE CABINET MEETING PRODUCED SOME PROMISES TO EXAMINE MEASURES THAT WOULD SPEED UP DOMESTIC CONSUMPTION AND JAPANESE ECONOMIC GROWTH AS WELL AS LOOSEN SOME IMPORT RESTRICTIONS NOTHING CONCRETE WAS MENTIONED MEANWHILE THE US TRADE DEFICIT FOR JUNE HAD BALLOONED TO 1206 BILLION FROM A REVISED 838 BILLION IN MAY ANALYSTS HAD FORECAST THE JUNE DEFICIT TO COME IN AT 84 BILLION TO 9 BILLION IN ADDITION THE UNADJUSTED US TRADE DEFICIT WITH JAPAN WIDENED TO 433 BILLION IN JUNE FROM 375 BILLION A MONTH EARLIER BEFORE THE RELEASE OF THE US TRADE RESULTS THE DOLLAR TRADED AT 10210 YEN WITHIN MINUTES DISAPPOINTED TRADERS DUMPED DOLLARS SELLING THE US CURRENCY DOWN TO ABOUT 10150 YEN THE TRADE NUMBERS CAME OUT AND WERE SHOCKINGLY BAD AND MOST PROFESSIONAL TRADERS ASSUMED WE WERE IN FOR A DOLLAR FREEFALL SAID MR WITTEN THEN THE US GOVERNMENT GOT INTO THE ACT IN ADDITION TO EXPRESSING CONCERN THAT THE YEN'S SPEEDY CLIMB COULD RETARD BOTH JAPANESE AND WORLD GROWTH TREASURY UNDERSECRETARY SUMMERS SAID CURRENCY RATES SHOULD REFLECT ECONOMIC FUNDAMENTALS A POINT US OFFICIALS HAVE MADE ON PREVIOUS OCCASIONS BUT HE ALSO ACKNOWLEDGED THAT TOO MUCH VOLATILITY IN EXCHANGE RATES CAN BE COUNTERPRODUCTIVE TO GROWTH MANY TRADERS INTERPRETED MR SUMMERS COMMENTS AS A POSSIBLE CHANGE IN US POLICY SINCE EARLY THIS YEAR MANY ANALYSTS HAVE BELIEVED THAT WASHINGTON WAS WILLING TO LET THE DOLLAR FALL AGAINST THE YEN TO PUT PRESSURE ON THE JAPANESE GOVERNMENT TO OPEN ITS MARKETS AND CORRECT THE US TRADE DEFICIT BUT NOW THEY SUGGEST THAT YESTERDAY'S FED INTERVENTION MAY SIGNAL THAT JAPAN AND THE US HAVE CUT A DEAL JAPAN WILL TAKE CONCRETE STEPS TO OPEN ITS MARKETS TO MORE FOREIGN GOODS AND ALSO ADOPT MEASURES TO SPEED UP DOMESTIC CONSUMPTION IN TURN THE US WILL STOP HINTING THAT IT WAS SATISFIED WITH A STRONGER YEN WHICH WAS CHOKING JAPANESE GROWTH AND HURTING CORPORATE PROFITS AND EVEN INTERVENE TO HELP LOWER IT AGAINST THE DOLLAR CLEARLY THE US ACTIONS IMPLY THAT JAPANESE TOLD US OFFICIALS PRIVATELY OF WHAT IN FACT THEY PLANNED TO DO FOREMOST WOULD BE A TAX CUT AND PROBABLY AN INTERESTRATES CUT SAID MCM'S MR GILMORE YESTERDAY'S FED DOLLAR PURCHASES AND MR SUMMERS'S REMARKS ABSOLUTELY IMPLY SOME SORT OF DEAL HAS BEEN CUT THE FACT THAT WE DIDN'T SEE THE FED EARLIER IN THE WEEK BUT ONLY AFTER THE JAPANESE CABINET MEETING IS INDICATIVE OF A QUID PRO QUO 9308200156 930820 GAMBRO PRETAX PROFIT ROSE 25 IN 1ST HALF ON WEAKER KRONA SPECIAL TO THE WALL STREET JOURNAL NET INCOME WAS 294 MILLION KRONOR IN THE FIRST HALF UP FROM 238 MILLION KRONOR A YEAR AGO IT SAID OPERATING PROFIT IN THE PERIOD INCREASED 33 TO 664 MILLION KRONOR FROM 501 MILLION KRONOR IN THE FIRST SIX MONTHS OF 1992 IT SAID GAMBRO SAID THE SALES INCREASE DURING THE PERIOD WHEN ADJUSTED FOR ACQUISITIONS OF COMPANIES AND A RECENT DEPRECIATION OF THE SWEDISH KRONA WAS ONLY 10 COMPARED WITH THE YEAREARLIER PERIOD CALCULATED ACCORDING TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FIRSTHALF NET AMOUNTED TO 275 MILLION KRONOR EQUIVALENT TO 1003 KRONOR 130 A SHARE COMPARED WITH 220 MILLION KRONOR OR 869 KRONOR A SHARE IN THE FIRST HALF OF 1992 THE WEAKENING OF THE SWEDISH KRONA HAD A POSITIVE EFFECT ON INCOME AS A RESULT OF THE GROUP'S EARNINGS IN FOREIGN CURRENCIES AND DELIVERIES FROM ITS OWN PLANTS IN SWEDEN SAID GAMBRO THE GROUP'S OPERATING MARGIN DECLINED TO 153 IN THE FIRST HALF FROM 164 A YEAR EARLIER IT SAID THIS WAS AN EFFECT OF THE RELATIVE INCREASE IN THE PROPORTION OF SALES ATTRIBUTABLE TO THE NEW HEALTH CARE SERVICES BUSINESS AREA WHICH HAS A LOWER OPERATING MARGIN THAN OTHER BUSINESS AREAS SAID GAMBRO IN ITS INTERIM REPORT GAMBRO SAID THE EARNINGS TREND IS EXPECTED TO REMAIN FAVORABLE FOR 1993 AS A WHOLE BUT DIDN'T ELABORATE THE GROUP SAID SALES IN ITS RENAL CARE BUSINESS AREA SHOWED FAVORABLE GROWTH BOTH IN EUROPE AND THE US RISING TO 291 BILLION KRONOR FROM 224 BILLION KRONOR IN THE FIRST HALF OF 1992 IN ITS CARDIOVASCULAR SURGERY AREA SALES GREW TO 543 MILLION KRONOR FROM 435 MILLION KRONOR BUT REMAINED ON THE SAME LEVEL AS IN THE FIRST SIX MONTHS OF 1992 WHEN EXPRESSED IN US DOLLARS SAID GAMBRO 9308200155 930820 WHO'S NEWS STERLING ELECTRONICS CORP STERLING ELECTRONICS CORP HOUSTON RONALD S SPOLANE 38 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ELECTRONICS DISTRIBUTOR MR SPOLANE THE SON OF MICHAEL S SPOLANE THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING HE SUCCEEDS LEOPOLD S BAER 66 WHO RETIRED LAST MONTH AFTER A 44YEAR CAREER WITH THE COMPANY 9308200153 930820 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 NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE AUG 26 1998 PRICED AT PAR TO YIELD 516 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 14 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC FIRST BANK NA 100 MILLION OF SUBORDINATED STEPUP NOTES DUE AUG 15 2005 PRICED AS 625S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 99 BASIS POINTS ABOVE TREASURYS THE ISSUER HAS A ONETIME CALL ON THE NOTES ON AUG 15 2000 WHEN THE INTEREST RATE WOULD INCREASE TO 73 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FRANKLIN UNIVERSAL TRUST 75 MILLION OF SENIOR NOTES DUE SEPT 1 1998 PRICED AS 5625S AT 99913 TO YIELD 5645 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 625 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC MICHIGAN CONSOLIDATED GAS CO 100 MILLION OF FIRST MORTGAGE BONDS PRICED IN TWO PARTS BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE 60 MILLION ISSUE OF AMORTIZING FIRST MORTGAGE BONDS DUE MAY 1 2001 WAS PRICED AS 575S AT PAR TO YIELD 50 BASIS POINTS ABOVE TREASURYS THE ISSUE IS NONCALLABLE THE 40 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE MAY 1 2025 WAS PRICED AS 7S AT 9876 TO YIELD 71 A 90BASISPOINT SPREAD ABOVE TREASURYS THE ISSUE IS NONCALLABLE FOR 10 YEARS MICHIGAN CONSOLIDATED IS A UNIT OF MCN CORP POTOMAC ELECTRIC POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE SEPT 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY FIRST BOSTON CORP IT WAS REOFFERED AS 6875S AT 9844 TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP LANDRY'S SEAFOOD RESTAURANTS INC INITIAL PUBLIC OFFERING OF TWO MILLION SHARES OF COMMON STOCK SOLD AT 12 APIECE THROUGH COMANAGERS DEAN WITTER REYNOLDS INC AND JC BRADFORD & CO OF THE TOTAL 16 MILLION SHARES WERE OFFERED BY THE COMPANY AND 400000 SHARES WERE OFFERED BY TILMAN J FERTITTA PRESIDENT AND CHIEF EXECUTIVE OFFICER NABORS INDUSTRIES INC 18 MILLION COMMON SHARES SOLD AT 9875 APIECE FOR 178 MILLION IN PROCEEDS ACCORDING TO THE COMPANY SAN DIEGO GAS & ELECTRIC CO 35 MILLION OF PREFERENCE STOCK SOLD AT 25 A SHARE ACCORDING TO THE COMPANY THE STOCK HAS A DIVIDEND YIELD OF 68 OR 425 CENTS PAID QUARTERLY BEGINNING WITH A PARTIAL DIVIDEND ON OCT 15 TEXAS MERIDIAN RESOURCE CORP FOUR MILLION COMMON SHARES PRICED AT 825 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO WASHINGTON NATIONAL CORP 23 MILLION COMMON SHARES PRICED AT 2375 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC SALOMON BROTHERS 2008 GOVERNMENT TERM TRUST INC INITIAL OFFERING OF 30 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC SAUL CENTERS INC INITIAL OFFERING OF 114 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC INDIANA STATE OFFICE BUILDING COMMISSION 1769 MILLION CAPITOL COMPLEX REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP OVERALL YIELDS FOR THE THREEPART OFFERING RANGE FROM 275 IN 1994 TO 556 IN 2015 THE ISSUE INCLUDES 421 MILLION SERIES 1993A INDIANA GOVERNMENT CENTER PARKING FACILITIES BONDS PRICED TO YIELD FROM 375 IN 1996 TO 556 IN 2015 1066 MILLION SERIES 1993B INDIANA GOVERNMENT CENTER NORTH BONDS PRICED TO YIELD FROM 375 IN 1996 TO 556 IN 2015 AND 282 MILLION INDIANA GOVERNMENT CENTER SOUTH BONDS PRICED TO YIELD FROM 275 IN 1994 TO 556 IN 2015 ALL PARTS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MICHIGAN BUILDING AUTHORITY 4901 MILLION SERIES I OF 1993 REVENUE REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP INCLUDED IN THE ISSUE ARE 4736 MILLION SERIAL AND TERM BONDS AND 165 MILLION OF SPECIAL SINKINGFUND BONDS FOR THE SERIAL AND TERM BONDS YIELDS RANGE FROM 23 IN OCTOBER 1993 TO 545 IN 2016 UNINSURED BONDS WHICH ARE DUE IN 19931998 AND 2004 HAVE BEEN RATED SINGLEA BY MOODY'S AND DOUBLEAMINUS BY BOTH S&P AND FITCH INVESTORS SERVICE INC BONDS DUE IN 19992003 20052011 AND 2016 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE 165 MILLION SPECIAL SINKINGFUND BONDS HAVE BEEN PRICED TO YIELD 42 IN 2013 5 IN 2014 AND 525 IN 2015 THEY HAVE BEEN RATED SINGLEA BY MOODY'S AND DOUBLEAMINUS BY S&P AND FITCH FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF GOLD STRIPPED MORTGAGEBACKED SECURITIES TRUST GS153 OFFERED THROUGH UNDERWRITER PRUDENTIAL SECURITIES INC THE SECURITIES ARE BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 6625 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993185 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1993183 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 4615 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993186 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993181 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS ASOCIACION NACIONAL DEL CAFE GUATEMALA 60 MILLION OF 11 EUROBONDS DUE AUG 31 1998 AT ISSUE AND REOFFER PRICE PAR VIA VESTCORPARTNERS LTD BONDS YIELD 11 SEMIANNUAL GUARANTOR REPUBLIC OF GUATEMALA FEES UNDISCLOSED BANK NEDERLANDSE GEMEENTEN NV NETHERLANDS ONE BILLION DUTCH GUILDERS OF EUROBONDS IN TWO TRANCHES VIA ABN AMRO BANK NV FIRST TRANCHE IS 500 MILLION GUILDERS OF 625 NOTES DUE SEPT 15 2000 AT ISSUE PRICE 1005 REOFFERED AT 997 TO YIELD 6304 A SPREAD OF 256 BASIS POINTS ABOVE DUTCH STATE LOAN DUE 2000 SECOND TRANCHE IS 500 MILLION GUILDERS OF 675 NOTES DUE SEPT 15 2008 AT ISSUE PRICE 10035 REOFFERED AT 9965 TO YIELD 6788 A MARGIN OF 258 BASIS POINTS OVER DUTCH STATE LOAN DUE 2007 FEES ONE POINT BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG GERMANY 150 MILLION SWISS FRANCS OF 3 PRIVATELY PLACED NOTES DUE OCT 1 2002 WITH EQUITYPURCHASE WARRANTS ISSUED BY SWISS BANK CORP AT PAR VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM OCT 8 1993 TO OCT 4 1996 TO BUY SHARES IN VEBA AG AT 048 PREMIUM ABOVE AVERAGE CLOSING SHARE PRICE FROM AUG 20 TO AUG 23 WHEN TERMS FIXED FEES STANDARD CREDIT D'EQUIPEMENT DES PETITES ET MOYENNES ENTREPRISES FRENCH AGENCY 30 MILLION OF PERPETUAL 85 EUROBONDS AT ISSUE AND REOFFER PRICE OF 9902 VIA HOARE GOVETT SECURITIES LTD BONDS YIELD 865 TO 2003 CALL DATE A SPREAD OF 160 BASIS POINTS ABOVE 10YEAR BRITISH GILT BONDS CALLABLE ON SEPT 16 2003 INTEREST PAYMENT DATE AND EVERY FIVE YEARS THEREAFTER AT PAR IF BONDS NOT CALLED COUPON WILL BE RESET EVERY FIVE YEARS TO YIELD 240 BASIS POINTS ABOVE THEN PREVAILING FIVEYEAR GILT FEES UNDISCLOSED HALIFAX BUILDING SOCIETY UNITED KINGDOM 150 MILLION SWISS FRANCS OF 45 PUBLIC BONDS DUE SEPT 22 1998 PRICED AT 1023 VIA UNION BANK OF SWITZERLAND FEES 1625 LAVORO BANK OVERSEAS NV ITALIAN PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE AND REOFFER PRICE 9936 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 50 BASIS POINTS GUARANTOR BANCA NAZIONALE LAVORO SPA FEES 025 POINT SOCIETE NATIONALE DES CHEMINS DE FER FRANCE THREE BILLION FRENCH FRANCS OF 675 EUROBONDS DUE SEPT 16 2013 AT ISSUE AND REOFFER PRICE 9683 VIA SOCIETE GENERALE BONDS YIELD 705 A SPREAD OF 18 BASIS POINTS ABOVE FRENCH TREASURY NOTE DUE 2012 FEES 05 POINT SWEDEN SOVEREIGN 150 BILLION ITALIAN LIRE OF 9125 EUROBONDS DUE SEPT 16 2003 AT ISSUE PRICE 101675 VIA BANCA DI ROMA REOFFERED AT PAR TO YIELD 9125 BONDS CALLABLE FROM SECOND YEAR AT PAR ON COUPON PAYMENT DATE FEES TWO POINTS TELECOM CORP OF NEW ZEALAND FINANCE LTD NEW ZEALAND PARENT 75 MILLION NEW ZEALAND DOLLARS OF 65 EUROBONDS DUE SEPT 29 2000 AT ISSUE PRICE 1013 VIA HAMBROS BANK LTD BONDS YIELD 6605 AT 99425 BREAKEVEN PRICE FOR COMANAGERS A SPREAD OF 30 BASIS POINTS OVER NEW ZEALAND GOVERNMENT BOND CURVE GUARANTOR TELECOM CORP NEW ZEALAND LTD FEES TWO POINTS LESS 0125 POINT FOR LEAD MANAGER WOOLWICH BUILDING SOCIETY UK 200 MILLION OF 7 EUROBONDS DUE SEPT 9 1998 AT ISSUE PRICE 101095 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9957 TO YIELD 7105 A SPREAD OF 65 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 1875 POINTS 9308200152 930820 WHAT'S NEWS WORLDWIDE MUSLIM REBELS KILLED EIGHT ISRAELI SOLDIERS IN LEBANON PROMPTING RETALIATION IN AN ECHO OF THE EVENTS THAT TOUCHED OFF LAST MONTH'S FIGHTING IN LEBANON PROIRAN HEZBOLLAH GUERRILLAS LAUNCHED THEIR DEADLIEST ATTACKS IN FIVE YEARS AND ISRAEL RETALIATED WITH AIR RAIDS SEVEN ISRAELI SOLDIERS WERE KILLED AND TWO WOUNDED IN A BOMBING ASSAULT SHORTLY AFTER DAWN IN ISRAEL'S SECURITY ZONE IN SOUTHERN LEBANON ANOTHER ISRAELI SOLDIER WAS KILLED IN A SECOND BOMBING STRIKING BACK ISRAELI JETS HIT REBEL STRONGHOLDS IN EASTERN LEBANON KILLING TWO GUERRILLAS THE LATEST VIOLENCE RAISED TENSIONS LESS THAN TWO WEEKS BEFORE ARABISRAELI PEACE TALKS ARE SCHEDULED TO RESUME IN WASHINGTON ON AUG 31 US WARPLANES POUNDED AN IRAQI SURFACETOAIR MISSILE BATTERY IN THE NORTHERN NOFLY ZONE STRIKING FIRST WITH TWO FIGHTERS AND AN HOUR LATER WITH A PAIR OF GROUNDATTACK PLANES THE US SAID IRAQ PROVOKED THE STRIKES BY FIRING TWO MISSILES AT A PAIR OF US PLANES IRAQI OFFICIALS SAID ONE SOLDIER AND A CIVILIAN WERE WOUNDED PESTICIDE LIMITS WOULD BE RELAXED ON PROCESSED FOODS UNDER A WHITE HOUSE PLAN TO ALLOW SMALL AMOUNTS OF CARCINOGENS IF THE GOVERNMENT DETERMINES THEY DON'T POSE A SIGNIFICANT HEALTH RISK A 1958 LAW CURRENTLY BANS CANCERCAUSING PESTICIDES FROM PROCESSED FOODS EVEN IN THE MOST MINUTE AMOUNTS ONE HUNDRED NICARAGUAN REBELS TOOK MORE THAN TWO DOZEN LEGISLATORS SOLDIERS AND OFFICIALS HOSTAGE IN QUILALI A MOUNTAIN TOWN THE ARMY SAID ONE LAWMAKER WAS RELEASED LAST NIGHT THE CAPTORS EXCONTRA REBELS WHO FOUGHT THE LEFTIST SANDINISTAS IN THE 1980S DEMANDED THE RESIGNATIONS OF A PRESIDENTIAL AIDE AND THE ARMY CHIEF A UN AID CONVOY REACHED THE EMBATTLED CENTRAL BOSNIAN CITY OF MOSTAR FOR THE FIRST TIME IN MORE THAN TWO MONTHS BUT THE VEHICLES WEREN'T ABLE TO ENTER THE SEALEDOFF MUSLIM QUARTER ACCORDING TO UN OFFICIALS THEY HOPED CROAT FORCES TODAY WOULD ALLOW A SECOND CONVOY TO PASS INTO THE BOMBEDOUT SECTOR WHERE 35000 MUSLIMS LIVE BOSNIA'S MUSLIM PRESIDENT SET CONDITIONS INCLUDING AN IMMEDIATE HALT TO BOTH THE CROAT SIEGE OF MOSTAR AND THE SERB SIEGE OF SARAJEVO FOR ANY PEACE ACCORD WITH CROAT AND SERB LEADERS LATER SERBIA'S PRESIDENT MILOSEVIC SAID AFTER DAYLONG NEGOTIATIONS IN GENEVA THAT ALL CONDITIONS ARE IN PLACE FOR A FINAL SETTLEMENT AFGHANISTAN'S LEADERS DIFFERED OVER WHETHER TO ALLOW SHEIK OMAR ABDELRAHMAN INTO THE COUNTRY IF HE IS DEPORTED FROM THE US HIS LAWYER IN NEW YORK MENTIONED OTHER POSSIBILITIES INCLUDING FRANCE SUDAN AND ALGERIA THE CLERIC'S FOLLOWERS HAVE BEEN IMPLICATED IN THE WORLD TRADE CENTER BOMBING AND A PLOT TO BOMB OTHER SITES A GENETIC PUZZLE WAS SOLVED THAT PAVES THE WAY FOR IMPROVEMENT IN BOTH DIAGNOSIS AND TREATMENT OF A COMMON ADULT LEUKEMIA SCIENTISTS IN MICHIGAN SAID THE FINDING MEANS THAT A BLOOD TEST CAN BE PERFORMED TO MORE ACCURATELY DIAGNOSE THE DISEASE AND ESPECIALLY TO DETECT ITS RECURRENCE IN PATIENTS OPENING ARGUMENTS BEGAN IN THE LOS ANGELES TRIAL OF TWO BLACK MEN ACCUSED OF BEATING WHITE TRUCK DRIVER REGINALD DENNY AND SEVEN OTHERS IN APRIL 1992 AT THE START OF THE CITY'S RIOTS DAMIAN WILLIAMS AND HENRY WATSON WHO COULD FACE LIFE IN PRISON IF CONVICTED OF ATTEMPTED MURDER HAVE PLEADED NOT GUILTY A DOCTOR WAS SHOT OUTSIDE HIS ABORTION CLINIC IN WICHITA KAN GEORGE TILLER WHO HAS BEEN A TARGET OF PROTESTS BECAUSE HE PERFORMS LATETERM ABORTIONS WAS HOSPITALIZED WITH AN ARM WOUND A WOMAN SEEN PASSING OUT ANTIABORTION LITERATURE WALKED UP TO HIS VEHICLE AS HE WAS LEAVING THE CLINIC AND FIRED SEVERAL SHOTS ACCORDING TO POLICE SECURITY FORCES IN CAIRO DETAINED 20 MUSLIM MILITANTS IN CONNECTION WITH AN ATTEMPT TO KILL EGYPT'S INTERIOR MINISTER MEANWHILE THE ONLY ASSAILANT CAPTURED ALIVE AT THE SCENE WEDNESDAY DIED OF WOUNDS THE MUSLIM GROUP JIHAD CLAIMED RESPONSIBILITY FOR THE ATTACK ON HASSAN ELALFY WHO SUFFERED ONLY AN ARM INJURY YELTSIN MARKED THE SECOND ANNIVERSARY OF THE 1991 SOVIET COUP ATTEMPT BY LAUNCHING ANOTHER BARRAGE AGAINST PARLIAMENT HE CALLED THE LEGISLATORS A BULWARK OF REVENGESEEKING FORCES AND WARNED THAT BECAUSE OF PARLIAMENT'S DESTABILIZING ACTIVITIES A REACTIONARY TURNAROUND THREATENS REFORM 9308200151 930820 WHO'S NEWS BARCLAYS NAMES MARTIN TAYLOR CHIEF EXECUTIVE BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER A LONG SEARCH BARCLAYS PLC TAPPED MARTIN TAYLOR THE HEAD OF A MAJOR BRITISH TEXTILE COMPANY TO SERVE AS CHIEF EXECUTIVE THE ANNOUNCEMENT ENDED MONTHS OF UNCERTAINTY ABOUT THE SHAPE OF TOP MANAGEMENT AT BRITAIN'S LARGEST COMMERCIAL BANK FOLLOWING BARCLAYS'S FIRSTEVER LOSS IN 1992 ITS INSTITUTIONAL SHAREHOLDERS PRESSURED CHAIRMAN AND CHIEF EXECUTIVE ANDREW BUXTON TO RELINQUISH THE LATTER DUTY ARGUING THAT THE COMBINED RESPONSIBILITIES WERE TOO MUCH FOR ONE PERSON MR TAYLOR WHO HAD BEEN A FINANCIAL JOURNALIST JOINED COURTAULDS PLC IN 1982 THEN BECAME CHIEF EXECUTIVE OF COURTAULDS TEXTILES PLC FOLLOWING ITS SPINOFF IN 1990 UNDER HIS LEADERSHIP PROFIT STEADILY INCREASED AT THE COMPANY ONE OF EUROPE'S LARGEST FABRIC AND CLOTHING MAKERS THOUGH HE WAS LARGELY UNKNOWN AS A CANDIDATE FOR THE BARCLAYS JOB THE NEWS DIDN'T COME AS A BIG SURPRISE BECAUSE ANALYSTS ANTICIPATED THE NAMING OF SOMEONE OUTSIDE THE BANKING COMMUNITY MR TAYLOR WILL JOIN A COMPANY IN BETTER SHAPE THAN IN IT WAS 1992 WHEN LOSSES ON BAD LOANS PARTICULARLY TO PROPERTY COMPANIES THAT WENT BUST RESULTED IN A 242 MILLION LOSS 367 MILLION FOR THE FIRST HALF OF 1993 BARCLAYS POSTED A MORE THAN SIXFOLD INCREASE IN GROUP PRETAX PROFIT TO 335 MILLION FROM 51 MILLION THE SHARE PRICE OF BARCLAYS JUMPED 19 PENCE ON THE NEWS TO CLOSE AT 491 PENCE 745 ON THE LONDON STOCK EXCHANGE ANALYSTS HOWEVER WARNED AGAINST UNREALISTIC HOPES FOR THE 41YEAROLD MR TAYLOR IN A CORPORATION THIS LARGE YOU CAN NEVER EXPECT TOO MUCH FROM ONE PERSON AND MY SUSPICION IS THAT MR TAYLOR WILL HAVE LESS INFLUENCE AS CHIEF EXECUTIVE THAN DO THE CHIEF EXECUTIVES AT OTHER BIG BANKS SAID MICHAEL LEVER A BANKING ANALYST IN LONDON WITH SMITH NEW COURT ADDING THAT HE EXPECTS MR BUXTON TO VERY MUCH REMAIN IN CHARGE IN A STATEMENT MR BUXTON SAID AT COURTAULDS TEXTILES MARTIN TAYLOR HAS DEMONSTRATED OUTSTANDING MANAGEMENT ABILITIES STREAMLINING A WIDERANGING BUSINESS TRANSFORMING ITS FINANCIAL POSITION AND DRIVING FOR HIGHER PERFORMANCE STANDARDS AT COURTAULDS TEXTILES OFFICIALS NAMED NOEL JERVIS DIRECTOR OF FABRICS TO SUCCEED MR TAYLOR 9308200150 930820 NETHERLANDS PRODUCER PRICES EASE AMSTERDAM PRODUCER PRICES IN THE NETHERLANDS EDGED 02 LOWER IN JUNE FROM MAY AND WERE DOWN 22 FROM A YEAR EARLIER THE JUNE DECREASE CONFIRMED THE UNDERLYING SLACKENING OF INFLATION IN THE NETHERLANDS THIS YEAR PRODUCER PRICES FLUCTUATED NARROWLY AROUND CURRENT LEVELS FROM MONTH TO MONTH SINCE JANUARY THOUGH WELL BELOW A YEAR EARLIER THE SLACKPRODUCERPRICE TREND IS EVIDENT ALSO IN CONSUMER PRICES THIS MONTH THE GOVERNMENT REPORTED THAT JULY'S CONSUMER PRICE INDEX ROSE 07 FROM MAY BUT THAT RISE WAS DUE TO ONCEAYEAR RENT INCREASES ON JULY 1 EXCLUDING RENTINCREASE EFFECTS JULY CONSUMER PRICES WOULD HAVE EASED BY AS MUCH AS 05 9308200149 930820 INTERNATIONAL YELTSIN WARNS OF PARLIAMENT'S THREAT TO REFORM ON ANNIVERSARY OF COUP BID BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN MARKED THE SECOND ANNIVERSARY OF THE 1991 COUP ATTEMPT THAT WAS THE BEGINNING OF THE END OF THE SOVIET UNION BY LAUNCHING ANOTHER BARRAGE IN RUSSIA'S 1993 INTERNAL BATTLE FOR POWER CALLING RUSSIA'S SOVIETINSTALLED PARLIAMENT A BULWARK OF REVENGESEEKING FORCES MR YELTSIN WARNED THAT BECAUSE OF PARLIAMENT'S DESTABILIZING ACTIVITIES A REACTIONARY TURNAROUND CONTINUES TO THREATEN RUSSIAN REFORM BUT CITING POPULAR SUPPORT FOR HIS REFORM AGENDA SHOWN IN THE APRIL 26 REFERENDUM MR YELTSIN ADDED THAT HE DIDN'T BELIEVE THE RUSSIAN PEOPLE WOULD LET RUSSIA'S POLITICAL AND ECONOMIC REFORMS BE REVERSED RUSSIA'S GOVERNMENT TODAY INCLUDES THE EXPLOSIVE MIX OF A SOVIETINSTALLED PARLIAMENT AND A FREELY ELECTED PRESIDENT SINCE LAST YEAR THESE TWO CAMPS HAVE BEEN FIGHTING EACH OTHER AT THE EXPENSE OF RUSSIAN REFORM AT YESTERDAY'S NEWS CONFERENCE MR YELTSIN SAID HIS ADMINISTRATION'S WORST MISTAKE IN THE TWO YEARS SINCE THE COUP ATTEMPT WAS OUR FAILURE TO CALL NEW ELECTIONS TO PARLIAMENT IMMEDIATELY MR YELTSIN ALSO REPEATED HIS RECENT INSISTENCE THAT RUSSIA SHOULD HOLD EARLY PARLIAMENTARY ELECTIONS TO HELP RESOLVE THE COUNTRY'S CONSTITUTIONAL AND POLITICAL CRISIS THAT THREATENS NOT ONLY THE NATIONAL INTERESTS OF RUSSIA BUT THE SECURITY OF THE WORLD COMMUNITY AS WELL UNDER RUSSIA'S HOLDOVER BREZHNEVERA CONSTITUTION PARLIAMENTARY ELECTIONS AREN'T DUE UNTIL 1995 MR YELTSIN WHO HAS BEEN SEEKING SUPPORT FROM REGIONAL POLITICIANS FOR HIS DRAFT CONSTITUTION SAID IT WOULD BE IDEAL TO ADOPT THE NEW CONSTITUTION AND TO HAVE ELECTIONS THIS COMING AUTUMN BUT HE WENT ON TO SAY THAT SUCH INSTITUTIONAL CHANGE WILL PROBABLY STRETCH BEYOND THIS AUTUMN UNDER THE CURRENT CONSTITUTION PARLIAMENT MUST APPROVE ANY NEW NATIONAL CHARTER AND MOST PEOPLE'S DEPUTIES ARE IN NO HURRY TO FACE EARLY DEMOCRATIC CONTESTS FOR THEIR SEATS ESPECIALLY STRIDENT IN OPPOSING BOTH MR YELTSIN'S DRAFT CONSTITUTION AND EARLY ELECTIONS HAS BEEN THE HEAD OF PARLIAMENT RUSLAN KHASBULATOV WHOSE FORMERLY SOVIET CONSTITUENCY OF CHECHENYA CLAIMS THESE DAYS TO HAVE SECEDED FROM THE RUSSIAN FEDERATION AMONG THE TACTICS WITH WHICH MR YELTSIN MAY TRY TO OUTFLANK PARLIAMENT IS THE FORMATION OF A FEDERATION COUNCIL NOW BEING ORGANIZED THIS COUNCIL COMPOSED OF REGIONAL OFFICIALS MIGHT HELP SERVE AS A COUNTERWEIGHT TO PARLIAMENT PARLIAMENT HAS BEEN ACTIVE THIS MONTH IN FIGHTING BACK AT MR YELTSIN IT RECENTLY PASSED A BUDGET WITH A DEFICIT ESTIMATED AT SOME 22 TRILLION RUBLES 22 BILLION MORE THAN DOUBLE WHAT MR YELTSIN'S ADMINISTRATION HAS SAID IT WILL ACCEPT AND TRYING TO MAKE THE MOST OF RUSSIAN TELEVISION PARLIAMENT ALSO RESOLVED THIS MONTH THAT A BROADCAST OF ITS ACTIVITIES SHOULD BE EXALTED TO A PRIMETIME SLOT 9308200148 930820 BRITAIN'S GDP ROSE 05 IN SECOND PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN'S GROSS DOMESTIC PRODUCT ROSE 05 IN THE SECOND QUARTER FROM THE FIRST QUARTER AND WAS UP 15 FROM A YEAR EARLIER ACCORDING TO SEASONALLY ADJUSTED FIGURES PUBLISHED BY THE CENTRAL STATISTICS OFFICE THE FIGURES WERE UNREVISED FROM PROVISIONAL ESTIMATES GDP IS THE TOTAL VALUE ALL THE GOODS AND SERVICES PRODUCED IN A NATION ACCORDING TO THE DATA THE INDUSTRIAL SECTOR OF THE ECONOMY WHICH INCLUDES THE OIL AS WELL AS OTHER MANUFACTURING INDUSTRIES GREW FASTER THAN THE SERVICE SECTOR DURING THE QUARTER A TREASURY SPOKESMAN COMMENTED SEPARATELY THAT THE LATEST GDP FIGURES AND OTHER RECENT BRITISH INDICATORS CONFIRM PREVIOUS ESTIMATES THAT RECOVERY IS UNDER WAY ON A BROAD FRONT 9308200147 930820 INTERNATIONAL SONY POSTS 31 RISE IN PRETAX PROFIT AIDED BY HEDGING AGAINST YEN'S RISE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP REPORTED A 31 JUMP IN ITS FIRSTQUARTER CONSOLIDATED PRETAX PROFIT DESPITE FALLING SALES A RESULT THAT LARGELY REFLECTED ITS SUCCESS IN HEDGING AGAINST THE YEN'S RECENT RISE THE GROUP'S PRETAX PROFIT IN THE QUARTER ENDED JUNE 30 ROSE TO 3863 BILLION YEN 3797 MILLION FROM 2948 BILLION YEN IN THE YEAREARLIER PERIOD ITS GROUP SALES FELL 10 TO 82871 BILLION YEN FROM 92439 BILLION A YEAR EARLIER COMPANY OFFICIALS BLAMED THE FALL IN SALES ON THE STRENGTHENING YEN WHICH HAS RISEN 22 AGAINST THE DOLLAR SINCE THE START OF THE YEAR A STRONGER YEN USUALLY WEAKENS JAPANESE EXPORT SALES BY MAKING PRODUCTS MORE EXPENSIVE OVERSEAS CONSOLIDATED OPERATING PROFIT WHICH REFLECTS THE CORE BUSINESS PERFORMANCE FELL TO 253 BILLION YEN FROM 3943 BILLION A YEAR EARLIER A 36 DECLINE NET INCOME TUMBLED 49 TO 769 BILLION YEN FROM 1493 BILLION SONY ATTRIBUTED THE RISE IN PRETAX PROFIT THE COMPANY'S FIRST YEARONYEAR QUARTERLY INCREASE EXCLUDING EXTRAORDINARY ITEMS IN 2 1/2 YEARS MAINLY TO ITS SUCCESSFUL ANTICIPATION OF THE YEN'S APPRECIATION SONY'S WINNING GAMBLE LED IT TO REPORT 2036 BILLION YEN IN INCOME FROM FOREIGN EXCHANGE GAINS DURING THE FIRST QUARTER NEARLY 10 TIMES WHAT IT REPORTED ON SUCH GAINS A YEAR EARLIER SONY DERIVES ABOUT 72 OF ITS REVENUE FROM MARKETS OUTSIDE OF JAPAN THEY'RE CERTAINLY DOING A SPLENDID JOB AT HEDGING SAID DAVID BENDA A TECHNOLOGY ANALYST WITH BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD WHAT SONY'S CURRENCY GAINS DON'T DO AS EVIDENCED BY ITS BIG DROP IN OPERATING PROFIT IS CHANGE ITS UNDERLYING DIFFICULTIES THE COMPANY'S SALES HAVE BEEN HIT HARD NOT ONLY BY THE HIGH YEN BUT ALSO BY THE STAGNANT JAPANESE ECONOMY AND A PROLONGED SLUMP IN ITS MAINSTAY CONSUMER ELECTRONICS BUSINESS BROUGHT ON BY MARKET SATURATION EVEN NOW MANY ANALYSTS AGREE THAT WITHOUT NEW HIT PRODUCTS SONY WILL HAVE A HARD TIME REGAINING ITS ONCEIMPRESSIVE RATES OF GROWTH SONY SAID IT'S TRYING HARD WITH THE MINIDISC A NEW AUDIO PRODUCT THAT PLAYS 25INCH RECORDABLE COMPACT DISKS YET ALTHOUGH THE COMPANY CLAIMS THAT ITS MINIDISC PRODUCTS ARE SO POPULAR THAT DEMAND HAS OUTSTRIPPED SUPPLY SONY ISN'T PRODUCING THE MACHINES AT FULL CAPACITY ALTHOUGH THE COMPANY HAS THE ABILITY TO MAKE 50000 MINIDISC UNITS EVERY MONTH IT WAS PRODUCING ONLY SLIGHTLY MORE THAN 40000 UNITS MONTHLY THROUGH JUNE OFFICIALS SAID ONLY THAT SONY HAS RESTRAINED PRODUCTION BECAUSE IT PLANS TO INTRODUCE NEW MINIDISC MODELS PROBABLY WITHIN THE NEXT SEVEN MONTHS AND RETOOLING PRODUCTION LINES IS A DIFFICULT PROCESS BECAUSE OF THE STRONG YEN SONY ALSO LOWERED ITS GROUP SALES FORECAST FOR THE FISCAL YEAR ENDING NEXT MARCH 31 TO 372 TRILLION YEN FROM ITS EARLIER ESTIMATE OF 391 TRILLION YEN WITH THE NEW FORECAST THE COMPANY PREDICTS A 7 DECLINE IN SALES FROM THE PREVIOUS YEAR SONY LEFT UNCHANGED ITS ESTIMATE OF 87 BILLION YEN IN PRETAX PROFIT SONY AMERICAN DEPOSITARY RECEIPTS CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 4225 OFF 625 CENTS 9308200146 930820 CHINA NATION OF TEA DRINKERS TURNS COFFEE INTO FASHIONABLE CONSUMPTION BY SALLY D GOLL SPECIAL TO THE WALL STREET JOURNAL SHANGHAI CHINA IN SLEEK NEW HOTELS AND INTIMATE BARS SCATTERED THROUGH THIS FASHIONCONSCIOUS CITY THE NEWLY RICH URBAN ELITE SIP THEIR NEW DRINK OF CHOICE COFFEE IN A SIGN OF RISING AFFLUENCE AND THE LURE OF FOREIGN WAYS DEMAND FOR COFFEE IS BREWING IN BIG CHINESE CITIES ALTHOUGH THE MARKET REMAINS TINY IN THIS NATION OF TEA DRINKERS COFFEE PRODUCERS ARE MILKING THE PRODUCT'S NEWFOUND STYLISHNESS FOR ALL IT IS WORTH BY STRESSING ITS INTERNATIONAL IMAGE IN THEIR ADVERTISING YAN FAN 24 YEARS OLD IS TYPICAL OF CHINA'S NEW COFFEE GENERATION MR YAN STARTED DRINKING COFFEE IN 1988 WHEN HE WAS A STUDENT IT WAS NEW AND INTERESTING HE RECALLS NOW A SMALL BUSINESS OWNER MR YAN SAYS HE DRINKS COFFEE AT LEAST THREE OR FOUR TIMES A WEEK MR YAN'S GIRLFRIEND GU XIN SAYS COFFEEDRINKING HAS GONE HANDINHAND WITH THE GROWTH IN SHANGHAI'S NIGHTLIFE FIRST CAME DANCING THEN COFFEE AND KARAOKE MACHINES GUSHES MS GU SALES OF INSTANT COFFEE THE MOST POPULAR FORM OF COFFEE IN CHINA HAVE BEEN EXPANDING FOR A DECADE AN ESTIMATED 2500 TONS OF INSTANT COFFEE VALUED AT 400 MILLION YUAN 699 MILLION AT THE OFFICIAL RATE WAS SOLD IN CHINA LAST YEAR ACCORDING TO INDUSTRY EXECUTIVES THEY ESTIMATE THE MARKET HAS ROUGHLY DOUBLED EVERY TWO YEARS SINCE THE MID1980S EXECUTIVES FROM NESTLE SA WHOSE NESCAFE BRAND IS THE MARKET LEADER IN CHINA AND FROM NO 2 MAXWELL HOUSE BOTH EXPECT RAPID GROWTH TO CONTINUE THEY ESTIMATE THAT THE MARKET WILL EXPAND 20 TO 30 NEXT YEAR NESTLE SAYS THE ONLY THING THAT WILL INHIBIT ITS GROWTH IN THE NEXT FEW YEARS IS A SHORTAGE OF PRODUCTION CAPACITY IN CHINA DORIT GRUBER MARKETING DEVELOPMENT MANAGER ASIA PACIFIC FOR KRAFT GENERAL FOODS ASIAPACIFIC LTD A UNIT OF PHILIP MORRIS COS SAYS THE COMPANY'S MAXWELL HOUSE INSTANTCOFFEE BUSINESS HAS BEEN GROWING AT AN ANNUAL RATE OF 40 TO 50 SINCE THE COMPANY OPENED A PLANT IN GUANGDONG PROVINCE FOR PROCESSING COFFEE BEANS INTO POWDERED FORM IN 1988 BUT SELLING JAVA IN CHINA IS STILL SOMETHING OF A GRIND MAINLAND CHINESE CONSUME AT LEAST 1500 CUPS OF TEA ANNUALLY PER CAPITA SAYS R TSCHAN CHAIRMAN OF NESTLE CHINA LTD WHILE THE MAJORITY OF CHINA'S POPULATION LIVES IN RURAL AREAS COFFEE DRINKERS ARE CONCENTRATED IN MAJOR CITIES ON AVERAGE CHINESE CITYDWELLERS DRINK NO MORE THAN FOUR CUPS OF INSTANT COFFEE EACH YEAR ACCORDING TO KRAFT WHICH MARKETS INSTANT AND ROASTANDGROUND COFFEE IN CHINA PERCAPITA CONSUMPTION OF BREWED COFFEE IS STILL SO TINY THAT KRAFT SAYS IT'S TOO DIFFICULT TO MEASURE NESTLE WHOSE EXPERIENCE SELLING ITS BRANDED PRODUCTS IN CHINA DATES BACK TO THE LATE 19TH CENTURY NOW OPERATES TWO PLANTS IN CHINA BOTH JOINT VENTURES THE FIRST OPENED IN 1990 IN NORTHERN CHINA MAKES MILK PRODUCTS UNDER THE NESPRAY LACTOGEN AND MILO LABELS AS WELL AS COFFEEMATE POWDERED NONDAIRY CREAMER THE COMPANY OPENED A COFFEEPROCESSING PLANT IN DONGGUAN GUANGDONG PROVINCE A YEAR LATER ALL TOLD NESTLE HAS ABOUT A DOZEN PRODUCTS ON THE MARKET IN CHINA BUT NESCAFE IS ITS BIGGEST SELLER INDUSTRY EXECUTIVES SAY THE MARKET FOR INSTANT COFFEE IS AT LEAST SIX TIMES AS LARGE AS THAT FOR ROAST COFFEE NESTLE SAYS ITS SHARE OF CHINA'S INSTANTCOFFEE MARKET IS MORE THAN 50 SOME INDUSTRY EXECUTIVES PUT THE FIGURE AT ALMOST 70 NESTLE USES ASPIRATIONAL ADVERTISING AND BOLD PACKAGING TO MARKET COFFEE IN CHINA A RECENT NESCAFE AD FEATURES A YOUNG MAN TAKING A COFFEE BREAK WHILE MOVING INTO HIS NEW APARTMENT IN CHINA WHERE IT'S COMMON FOR A LARGE FAMILY TO SHARE A TINY APARTMENT THE IDEA OF A SINGLE YOUNG MAN LIVING ON HIS OWN IS SOMETHING MOST PEOPLE CAN STILL ONLY DREAM ABOUT BECAUSE GIFT GIVING IS AS MUCH A PART OF DAILY CHINESE LIFE AS TEA DRINKING NESCAFE PACKAGES ITS PRODUCTS IN GOLD AND RED GIFT BOXES TO THE CHINESE GOLD AND RED CONNOTE HAPPINESS AND PROSPERITY SALES OF GIFT PACKAGES REPRESENT 50 OF NESCAFE'S ANNUAL SALES AND 80 DURING THE MIDAUTUMN AND SPRING FESTIVALS WHEN GIFTGIVING IS MOST POPULAR IN 1988 MAXWELL HOUSE INTRODUCED PREMIXED PACKETS THAT INCLUDE POWDERED INSTANT COFFEE CREAM AND SUGAR NESTLE FOLLOWED SUIT WITH ITS OWN VERSION IN 1991 DESPITE ITS OVERWHELMING LEAD NESTLE HAS EXPERIENCED SOME GROWING PAINS WHILE SHANGHAI RETAILERS SAY NESCAFE CONTINUES TO BE ONE OF THEIR FASTESTSELLING PRODUCTS MOST REPORT THAT SALES HAVE COOLED IN THE PAST YEAR THE QUALITY OF TODAY'S NESCAFE ISN'T AS GOOD BECAUSE IT COMES FROM A JOINT VENTURE SAYS ZHANG YING BAI POINTING TO A GUANGDONG ADDRESS ON A BOTTLE OF NESCAFE MR ZHANG WHO RUNS A FOOD STORE ON SHANGHAI'S BUSTLING NANJING ROAD WEST SAYS MANY OF HIS CUSTOMERS PREFER IMPORTED PRODUCTS LIM KHING FONG NESTLE CHINA LTD'S MANAGING DIRECTOR SAYS THAT THE COMPANY HAS FOUND CONSUMER RESISTANCE TO LOCALLY PRODUCED COFFEE IN OTHER ASIAN MARKETS BUT THAT THERE HASN'T BEEN ANY DECLINE IN QUALITY NESTLE BEGAN ALTERING ITS IMPORTED PRODUCTS TO MATCH LOCAL TASTES WELL BEFORE THE DONGGUAN PLANT OPENED IN 1991 HE SAYS WHILE ACKNOWLEDGING THAT SALES GROWTH HAS SLOWED MR LIM BLAMES THAT ON NESTLE'S INABILITY TO MEET DEMAND NOT ON RESISTANCE TO LOCALLY PROCESSED COFFEE IN THE MEANTIME ANECDOTAL EVIDENCE SUGGESTS THAT DEMAND FOR BREWED COFFEE WHILE STILL SMALL IS HEATING UP MELITTA HONG KONG LTD A DIVISION OF THE GERMAN COFFEE GIANT MELITTAGRUPPE BEGAN MARKETING ROASTED COFFEE COFFEEMAKERS AND FILTERS TO HOTELS IN CHINA 10 YEARS AGO WHILE INSTITUTIONAL SALES HAVE CLIMBED WITH THE OPENING OF MORE HOTELS GEORGE NG MELITTA REGIONAL SALES MANAGER SAYS THAT DURING THE PAST TWO YEARS SALES MADE DIRECTLY TO CONSUMERS HAVE GROWN FROM ZERO TO ABOUT 10 OF MELITTA'S TOTAL SALES IN CHINA IN THE SMALLAPPLIANCE DEPARTMENT OF THE SHANGHAI NO 1 DEPARTMENT STORE COFFEEMAKERS HAVE BEEN SELLING AT A RATE OF ABOUT 40 A MONTH FOR THE PAST SEVEN MONTHS COFFEE IS NOT JUST A DRINK ADDS XIE ZHAO JIE ASSISTANT MANAGER OF THE SHANGHAI COFFEE HOUSE NIGHT CLUB ESTABLISHED IN THE 1930S WHICH BILLS ITSELF AS THIS CITY'S OLDEST COFFEE SHOP IT'S A SYMBOL OF WESTERN CULTURE 9308200145 930820 WHO'S NEWS OHIO CASUALTY CORP OHIO CASUALTY CORP HAMILTON OHIO JOSEPH L MARCUM 70 YEARS OLD SAID HE WILL RETIRE AS CHIEF EXECUTIVE OFFICER OF THIS INSURANCE HOLDING COMPANY AT THE END THE YEAR HE WILL CONTINUE AS CHAIRMAN LAUREN N PATCH 42 WAS NAMED TO SUCCEED MR MARCUM MR PATCH WILL CONTINUE AS PRESIDENT 9308200144 930820 WHO'S NEWS MOSINEE PAPER CORP MOSINEE PAPER CORP MOSINEE WIS DANIEL R OLVEY 44 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PAPER MAKER SUCCEEDING RICHARD L RADT 61 WHO FOR HEALTH REASONS ASSUMES THE NEW POST OF VICE CHAIRMAN 9308200143 930820 IT'S GOT A GOOD BEAT YOU CAN DANCE TO IT AND IT SELLS COKE JINGLESTURNEDHITSINGLES ARE GIVING AD CAMPAIGNS IN EUROPE EXTENDED PLAY BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL IN HIS FADED JEANS BOOTS AND LEATHER JACKET THE YOUNG MAN LOOKS LIKE HE'S RIGHT OUT OF A COMMERCIAL FOR COCACOLA AS HE SPEEDS UP HIS CONVERTIBLE WITH THE STEREO BLASTING THE HIT SONG FIRST TIME FROM HIS COMPACTDISK PLAYER AD INDUSTRY EXECUTIVES ARE THRILLED THAT MORE AND MORE YOUNG EUROPEANS LIKE OLIVER SCHARFSCHWERDT ARE BUYING THE COKE THEME SONG AND OTHER JINGLESTURNEDHITSINGLES I LIKE THE HAPPY RELAXED SOUND OF THE SONG SAYS THE 25YEAROLD GERMAN ENTREPRENEUR HE ADMITS THAT PART OF THE TUNE'S ATTRACTION STEMS FROM COKE'S UPBEAT YOUTHFUL IMAGE THE AD AGENCY THAT CREATED THE SONG IS HAPPY TOO THE RECORD BENEFITED COCACOLA TREMENDOUSLY SAYS MARCIO MOREIRA CHIEF CREATIVE DIRECTOR OF MCCANN ERICKSON WORLDWIDE A UNIT OF INTERPUBLIC GROUP OF COS IF A SONG FOR YOUR PRODUCT MAKES IT TO THE TOP EVEYONE WHO BUYS THAT RECORD KNOWS IT'S A COKE SONG INCREASINGLY AD AGENCIES AND RECORD COMPANIES FIND THEMSELVES CURIOUS PARTNERS MORE AND MORE AD JINGLES ARE HITTING THE TOP OF THE RECORD CHARTS AS THE AGENCIES FIND SURPRISINGLY STRONG DEMAND FOR THE TUNES TO BE RELEASED AS SINGLES MANY USING GOLDEN OLDIES TO EXPLOIT YOUNG EUROPEANS' FASCINATION WITH THE 1950S ERA IN THE US INITIALLY MCCANN ERICKSON WROTE FIRST TIME SUNG BY ROBIN BECK FOR A US RADIO COMMERCIAL WHEN IT TRIGGERED ENTHUSIASTIC REACTIONS FROM RADIO STATIONS AND LISTENERS IT WAS TURNED INTO A TELEVISION COMMERCIAL AND EVENTUALLY STRETCHED INTO A FULLLENGTH LOVE SONG THAT DIDN'T MENTION COCACOLA THE RECORD HIT THE BRITISH CHARTS IN 1987 ROUGHLY 18 MONTHS AFTER THE RADIO SPOT FIRST AIRED THE SONG WAS HUGE IN EUROPE IT TOPPED THE CHARTS FOR SEVERAL WEEKS MR MOREIRA SAYS PROUDLY THE JINGLE CRAZE STARTED IN 1985 WHEN A FULLY DRESSED HANDSOME MALE MODEL STRETCHED OUT IN A BATHTUB TO DEMONSTRATE THE QUALITIES OF LEVI'S SHRINKTOFIT 501 JEANS THE SPOT ACCOMPANIED BY AN EASYGOING 1960S HIT BOOSTED LEVI'S SALES IN BRITAIN ALONE 800 WITHIN A YEAR BARTLE BOGLE HEGARTY THE AD'S LONDONBASED CREATOR SAYS THE SPOT HAD TO BE HALTED WHILE LEVI'S STEPPED UP PRODUCTION THE AGENCY HAS SINCE USED 1950S AND 1960S SONGS ALMOST EXCLUSIVELY FOR ITS LEVI'S ADS AND THE JEANS ARE AMONG THE MOST POPULAR IN EUROPE THE SONG IN THE COMMERCIAL SAM COOKE'S WONDERFUL WORLD WRITTEN AND RECORDED IN 1960 TURNED FROM A HIT JINGLE INTO A HIT SINGLE AGAIN IN 1986 ALL OVER EUROPE THE RECORD RELEASED TWO WEEKS INTO THE CAMPAIGN SOLD 270000 COPIES IN BRITAIN ALONE THE SONG HAD A HUGE EFFECT RECALLS THOMAS METZLER WHO MANAGES MUSIC SHOP IN DUSSELDORF GERMANY WHICH HAS A SMALL STORE SECTION DEVOTED TO JINGLES THAT HAVE MADE IT ONTO THE CHARTS CUSTOMERS NOW HUM JINGLES WHEN ASKING FOR A SONG HE SAYS AND AD SONGS HAVE RANKED AMONG THE STORE'S BEST SELLERS WHEN COMMERCIALS USE GOOD MUSIC RETAILERS BENEFIT AND SO DO RECORD COMPANIES IF YOU'RE SMART YOU PUBLISH THE SINGLE AT THE SAME TIME THE AD CAMPAIGN STARTS SAYS UWE KROP A MANAGER AT MCA INC'S GERMAN OFFICE WHICH MADE A KILLING ON RECORD SALES OF THE MAMAS AND THE PAPAS LAST YEAR AFTER LICENSING THE COPYRIGHT OF THE GROUP'S HIPPIEERA DAYDREAM TO GERMAN RETAILER C&A BRENNINCKMEYER KG WHEN RERUNS OF OLD TRACKS HIT THE BIG TIME AGAIN IT'S EXTREMELY PROFITABLE FOR RECORD COMPANIES SAYS TIM HIRST AN ANALYST WITH KLEINWORT BENSON SECURITIES IN LONDON MUSIC COMPANIES AGREE THAT BOTH COPYRIGHT FEES AND RECORD SALES ONCE A JINGLE HITS THE CHARTS CAN BOOST PROFIT AT ALMOST NO COST BUT IT'S A SIDE INCOME THEY MUST ACTIVELY PURSUE MOST RECORD COMPANIES CLOSELY FOLLOW CHANGES IN AD FIRMS' ACCOUNTS AND CAMPAIGNS STEVE ASHFORD A COPYRIGHT MANAGER WITH BERTELSMANN MUSIC GROUP IN LONDON SAYS HE REGULARLY SUPPLIES AGENCIES WITH BROCHURES OFFERING OLD RECORDINGS FOR USE IN RADIO AND TELEVISION SPOTS TEN YEARS AGO WE HAD TO ENCOURAGE THE MUSIC INDUSTRY TO MAKE A RECORD OUT OF A JINGLE SAYS JENS SCHARF A COPY WRITER WITH LINTAS IN HAMBURG NOW WE'RE SNOWED UNDER WITH OFFERS BECAUSE THE MUSIC COMPANIES WANT TO PUSH THEIR OLD SONGS BACK IN THE CHARTS IN MOST CASES HOWEVER IT IS THE ADVERTISING AGENCY THAT APPROACHES A MUSIC COMPANY IN SEARCH OF THE PERFECT SOUND IT STARTS FROM THE CREATIVE SIDE SAYS LORNA TILBIAN AT SG WARBURG & CO A SECURITIES HOUSE IN LONDON OTHERWISE IT WOULD MAKE A MOCKERY OUT OF ADVERTISING FINDING THE RIGHT MUSIC HAS BECOME CRUCIAL TO THE SUCCESS OF A CAMPAIGN AD EXECUTIVES AGREE BUT GOLDEN OLDIES CAN BE EXPENSIVE INVOLVING FEES TO BOTH SONG WRITERS AND RECORD COMPANIES PRICES VARY WITH THE CLIENT THE LENGTH OF THE CAMPAIGN AND THE NUMBER OF COUNTRIES IT RUNS IN FOR A YEARLONG EUROPEWIDE CAMPAIGN BY A PRESTIGIOUS COMPANY LIKE LEVI'S BMG CHARGES 75000 TO 100000 112000 AND 149000 IF THE AD RUNS ONLY IN BRITAIN THE RECORDING RIGHTS COST ROUGHLY 20000 TO CUT COSTS SOME ADVERTISERS BUY ONLY SONG RIGHTS AND RECORD THE TRACK WITH A NEW SINGER OTHERS CREATE A NEW JINGLE AN INDIVIDUALLY DESIGNED PANEUROPEAN CAMPAIGN SONG COSTS AN AGENCY AROUND 22000 INCLUDING PRODUCTION COSTS AND UTILIZATION RIGHTS BUT EVEN THE HIGHER COSTS CAN BE JUSTIFIED BY THE FREE PUBLICITY MOST TAPES AND COMPACT DISKS MENTION THE PRODUCT AND AD AGENCY NEXT TO THE SONG TITLE AND RADIO STATIONS OFTEN MAKE UNINTENDED PRODUCT PITCHES DISC JOCKEYS NOW MENTION RENAULT WHEN THEY ANNOUNCE ROBERT PALMER'S 1980S HIT JOHNNY AND MARY' SAYS NICOLAS DE GAULMYN AT PUBLICIS FCB IN PARIS MR GAULMYN SAYS THE AGENCY'S 200 VERSIONS OF THE SONG HAVE CREATED A NEW YOUNG IMAGE FOR THE FRENCH CAR MAKER FOR ADVERTISERS MUSIC HAS CHANGED FROM A DECORATIVE BACKGROUND ELEMENT TO A POWERFUL TOOL TO SINGLE OUT TARGET GROUPS EXPLAINS MCCANN ERICKSON'S MR MOREIRA IF YOU TRY TO SELL A PRODUCT TO BABYBOOMERS IN THEIR 40S YOU PICK A SONG THAT WAS IMPORTANT IN THEIR 20S 9308200142 930820 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ HANS B AMELL 41 YEARS OLD WAS ELECTED VICE PRESIDENT MARKETING A NEW POSITION AT THIS MANUFACTURER OF AEROSPACE AND AUTOMOTIVE PRODUCTS MR AMELL HAD BEEN VICE PRESIDENT OF INTERNATIONAL STRATEGY DEVELOPMENT AT DUN & BRADSTREET CORP NEW YORK 9308200141 930820 WHO'S NEWS AIWA CO AIWA CO TOKYO YUKIO YAMAMOTO 46 YEARS OLD WAS NAMED ACTING PRESIDENT OF AIWA AMERICA INC MAHWAH NJ THE US MARKETING UNIT OF THIS JAPANESE CONSUMER ELECTRONICS COMPANY HE SUCCEEDS AKINOBU ISHIHARA 58 WHO DIED IN A RECENT CAR ACCIDENT MR YAMAMOTO WAS PREVIOUSLY AIWA AMERICA'S EXECUTIVE VICE PRESIDENT 9308200140 930820 TIRED OF SHREDDING NEW RICOH METHOD TRIES DIFFERENT TACK TECHNIQUE ERASES THE TONER FROM PHOTOCOPY PAPER MAKING RECYCLING EASIER BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SPIES OF THE WORLD TAKE NOTE RICOH CO SAID IT HAS DEVELOPED A TECHNIQUE FOR LIFTING THE TONER FROM PHOTOCOPIED DOCUMENTS THUS ALLOWING THE COMPLETE ERASURE OF WHATEVER WAS PRINTED ON THEM IN THE FIRST PLACE WHILE THE JAPANESE COMPANY IS PITCHING ITS NEW PHOTOERASURE METHOD AS AN ENVIRONMENTALLY SOUND WAY OF RECYCLING COPIER PAPER IT HASN'T OVERLOOKED OTHER POSSIBLE USES FOR THE TECHNIQUE NOTING THAT SHREDDERS ARE OFTEN USED FOR DISCARDING CONFIDENTIAL DOCUMENTS RICOH DISDAINFULLY POINTS OUT THEIR DISADVANTAGES SUCH AS THE NEED FOR ADDITIONAL LABOR GENERATION OF NOISE SAFETY HAZARDS ETC AND THAT'S NOT TO MENTION THE RESULTING BULKY WASTE THAT'S UNSUITABLE FOR RECYCLING IN LIGHT OF THESE CONSIDERATIONS THE COMPANY SAYS IT HAS DEVELOPED A THERMOCHEMICAL METHOD FOR REMOVING THE TONER FROM PHOTOCOPIED DOCUMENTS WHAT IT CALLS THE ONLY FUNDAMENTAL SOLUTION FOR THE PAPERRECYCLING PROBLEM TO MAKE A PHOTOCOPY AN ORDINARY COPIER FIRST LAYS DOWN AN ELECTRICALLY CHARGED PATTERN ON A BLANK SHEET OF PAPER THAT CORRESPONDS TO THE PAGE BEING COPIED THEN STICKS A FINE GRITTY DUST THE TONER TO THE CHARGED PATTERN NEXT IT FUSES THE TONER TO THE PAPER USING A HEATED ROLLER RICOH'S NEW TECHNIQUE ESSENTIALLY REVERSES THE PROCESS FIRST IT APPLIES A CHEMICAL PEELOFF SOLUTION TO THE PAPER THUS LOOSENING THE TONER'S GRIP ON THE PAGE NEXT IT MELTS THE TONER AND THEN PEELS IT OFF THE PAGE WITH ANOTHER HEATED ROLLER THE RESULTING PAGE IS VIRTUALLY NEW AND CAN BE USED AGAIN TO MAKE NEW COPIES THE COMPANY SAYS RICOH SAYS THE TECHNOLOGY WHICH IS STILL IN THE PROTOTYPE STAGE WILL EVENTUALLY BE USED EITHER AS A STANDALONE PRODUCT OR AS A FEATURE IN A REGULAR PHOTOCOPIER ALTHOUGH RICOH DIDN'T GIVE SPECIFICS ON WHEN SUCH A COPY ERASER MIGHT BE SOLD OR HOW MUCH IT WOULD COST THE COMPANY DID SAY IT TAKES ABOUT ONE TO ONEANDAHALF YEARS TO DEVELOP COMMERCIAL PHOTOCOPIERS FROM PROTOTYPES RICOH SAYS IT HOPES TO SELL ITS COPY ERASER FOR LESS THAN IT SELLS ORDINARY PHOTOCOPIERS THERE ARE STILL A FEW BUGS TO BE WORKED OUT RICOH'S ERASER PROTOTYPE ERASES ONLY THREE PAGES A MINUTE AND WILL WORK UP TO JUST 10 TIMES ON A GIVEN PAGE BECAUSE THE CHEMICALPEEL DAMAGES THE PAPER SLIGHTLY EACH TIME THE MACHINE IS ALSO RELATIVELY UNFORGIVING OF PAPER THAT'S BEEN WORN OR CREASED 9308200139 930820 ECONOMY FIXEDRATE MORTGAGES HIT 23YEAR LOW IN BOOST FOR LACKLUSTER HOUSING MARKET BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL RESIDENTIAL FIXEDRATE MORTGAGES FELL THIS WEEK TO A 23YEAR LOW MOVING CLOSER TO 7 AND HELPING BOLSTER A STILLLACKLUSTER HOUSING MARKET AND A SUMMER REFINANCING BOOM THE AVERAGE RATE ON A 30YEAR CONVENTIONAL MORTGAGE DROPPED TO 711 FROM 717 REACHED LAST FRIDAY FOLLOWING A RENEWED DOWNWARD TREND OVER THE PAST THREE WEEKS SINCE THE PASSAGE OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN ACCORDING TO A PRELIMINARY SURVEY YESTERDAY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM ONEYEAR ADJUSTABLE RATE MORTGAGES MOST POPULAR IN THE EXPENSIVE COASTAL MARKETS INCREASED SLIGHTLY TO 436 AS OF YESTERDAY FROM 433 LAST FRIDAY ACCORDING TO THE SAME PRELIMINARY SURVEY BY HSH MANY ECONOMISTS PREDICT FIXEDRATE MORTGAGES WILL DIP BELOW THE IMPORTANT PSYCHOLOGICAL BARRIER OF 7 WITHIN THE NEXT FEW WEEKS SINCE THEY SAY THE TAX INCREASES CONTAINED IN THE DEFICITREDUCTION BUDGET WILL DO MUCH TO STIFLE ANY SURGING GROWTH IN THE ECONOMY THAT WOULD BOOST INFLATION AND INTEREST RATES THERE'S NO QUESTION THAT NO MATTER HOW YOU STRUCTURE IT DEFICIT REDUCTION ACTS TO SLOW ECONOMIC GROWTH SAID DAVID BERSON CHIEF ECONOMIST AT FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE THE BIG BUYER OF MORTGAGE LOANS SINCE LOWER RATES MEAN MORE PEOPLE CAN QUALIFY TO BUY HOMES AND REFINANCE EXISTING MORTGAGES THE LATEST DROP IS EXPECTED TO FURTHER BOOST MORTGAGE ACTIVITY A WEEKLY INDEX OF MORTGAGE APPLICATIONS BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA IS RUNNING AT MORE THAN 12 TIMES ITS NORMAL LEVEL FOR REFINANCINGS AND 70 ABOVE NORMAL FOR HOME PURCHASES THE INDEX IS CONSIDERED AN ACCURATE INDICATOR FOR FUTURE HOUSING SALES SINCE THE LOAN APPLICATIONS REFLECT PURCHASES THAT TAKE UP TO TWO MONTHS TO CLOSE WHENEVER YOU LOWER RATES IT'S CERTAINLY EXCITING TO HOME BUYERS AND REFINANCERS SAID PAUL HAVEMANN VICE PRESIDENT OF HSH INTEREST RATES BY THEMSELVES AREN'T A PANACEA HOWEVER THE RATES HAVE BEEN RELATIVELY LOW FOR TWO YEARS AND YET THE NATIONAL HOUSING RECOVERY HAS REMAINED ANEMIC COMPARED WITH OTHER POSTRECESSION STANDARDS THE KEY IMPEDIMENT TO THE RECOVERY ANALYSTS SAY IS CONSUMER UNCERTAINTY OVER JOBS LOSING YOUR JOB IS A BIGGER PSYCHOLOGICAL BARRIER THAN 7 RATES AND THAT IS ESSENTIALLY THE PROBLEM WITH THE MARKET SAID JOHN TUCCILLO CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS INTEREST RATES ARE A POWERFUL INCENTIVE TO BUY BUT THE RESPONSE HAS BEEN LIMITED SEVERELY BY JOB WEAKNESSES HOUSING SALES ARE INDEED BOOMING IN STRONGER MARKETS BETWEEN THE COASTS SUCH AS PHOENIX DENVER AND MADISON WIS BUT CONTINUED WEAKNESS IN THE NORTHEAST AND ESPECIALLY IN STILLSWOONING CALIFORNIA IS HOLDING BACK THE OVERALL RECOVERY A TURNAROUND IN CALIFORNIA STILL VIEWED BY ANALYSTS AS AT LEAST A YEAR AWAY IS CRITICAL TO THE NATIONAL RECOVERY BECAUSE THE GOLDEN STATE NORMALLY ACCOUNTS FOR AS MUCH AS ONEFIFTH OF THE COUNTRY'S HOME SALES MORTGAGE RATES HAVE BEEN SLIDING IN CORRELATION WITH A BUDGETDRIVEN RALLY IN THE GOVERNMENT BOND MARKETS THAT HAS SENT BOND YIELDS RATCHETING DOWN YIELDS ON FIXEDRATE MORTGAGES MOVE IN TANDEM WITH GOVERNMENTBOND RATES BECAUSE BOTH TYPES OF LONGTERM DEBT ARE SOUGHT BY WHOLESALE PURCHASERS AND COMPARE TO EACH OTHER ON THE BASIS OF PRICE THE MORTGAGE RATES HAD SPIKED UP BRIEFLY TO 731 FROM 718 LAST MONTH AFTER FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ROILED THE FINANCIAL MARKETS BY SAYING THE CENTRAL BANK WOULD UNDOUBTEDLY BE FORCED TO RAISE INTEREST RATES SOMETIME DOWN THE ROAD AS THE ECONOMY HEATS UP THE MARKETS SETTLED DOWN QUICKLY HOWEVER AFTER A FRESH SPATE OF DISAPPOINTING ECONOMIC NEWS UNDERSCORED THE POPULAR NOTION THAT INFLATION APPEARS TO BE OF NO IMMINENT THREAT ALL YEAR LONG WEAKNESS IN THE ECONOMY HAS BEEN DRIVING MORTGAGE RATES DOWN THE RATES ARE NOW DOWN MORE THAN A PERCENTAGE POINT FROM JAN 1 WHEN THEY WERE AT 828 AND SOME ECONOMISTS THINK THEY COULD SINK AS LOW AS 675 LATER THIS YEAR BEFORE DRIFTING UP SLOWLY AS THE ECONOMY GRADUALLY STRENGTHENS ALREADY A HANDFUL OF MORE AMBITIOUS LENDERS ARE OFFERING RATES AT 675 AND HSH'S MR HAVEMANN SAID SOME MAY BEGIN OFFERING RATES AS LOW AS 65 BY NEXT WEEK 9308200138 930820 WHO'S NEWS GENELABS TECHNOLOGIES INC GENELABS TECHNOLOGIES INC REDWOOD CITY CALIF IRENE CHOW 54 YEARS OLD AND THOMAS NG 38 WERE NAMED DIRECTORS OF THIS HEALTHCARE PRODUCTS CONCERN MS CHOW PRESIDENT OF THE COMPANY'S PHARMACEUTICAL DIVISION AND MR NG PRESIDENT OF ITS DIAGNOSTIC DIVISION FILL A VACANT SEAT ON THE NINEMEMBER BOARD AND A POSITION VACATED BY GREGORY R JOHNSON 49 WHO IS LEAVING THE BOARD 9308200137 930820 LEISURE & ARTS JOHNNY'S GIRL MAKES GOOD BY ROXANE ORGILL LOS ANGELES ALL BABBIE GREEN WANTED IN THE WORLD WAS TO WRITE A HIT SONG LIKE HER FAMOUS FATHER JOHNNY GREEN COMPOSER OF BODY AND SOUL OUT OF NOWHERE AND OTHER POPULAR TUNES FROM THE 1930S BUT WHEN SHE TOOK HER SONGS TO PUBLISHERS THEY SAID THE SONGS WERE THEATER MUSIC NOT POP MUSIC THIS DID NOT MAKE MS GREEN WANT TO SING FROM THE ROOFTOPS MOST THEATER WRITERS HAVEN'T A FOOL'S CHANCE OF GETTING A SHOW MOUNTED ON BROADWAY SHE WENT ON WRITING NOW AND THEN CAME A SIGN THAT SHE WAS HEADED IN THE RIGHT DIRECTION EVEN IF IT WASN'T HER FATHER'S FIRST SHE GOT INVITED TO PERFORM HER SONGS AT THE ANNUAL CABARET CONVENTION AT NEW YORK'S TOWN HALL THEN SHE RECEIVED THE FIRST JOHNNY MERCER AWARD FOR EMERGING SONGWRITERS IN MUSICAL THEATER AT THE AWARDS CEREMONY SHE HAD A KIND OF EPIPHANY I REALIZED I WASN'T THERE AS SOMEBODY'S DATE I WASN'T THERE AS SOMEBODY'S DAUGHTER I WAS THERE AS A SONGWRITER AS ONE OF THEM NOT BY COINCIDENCE IS HER FIRST ALBUM JUST OUT THIS SUMMER WITH AN ALLSTAR CAST OF SINGERS CALLED IN NOBODY'S SHADOW ALTHOUGH HER PARENTS DIVORCED WHEN SHE WAS THREE AND SHE GREW UP WITH HER MOTHER THE ACTRESS CONSUMERAFFAIRS COMMISSIONER AND TV REPORTER BETTY FURNESS HER ABSENT FATHER WAS A HUGE INFLUENCE JOHNNY GREEN'S IMPACT ON HIS GIRL WAS ENORMOUS HIS CAREER AS A SONGWRITER WAS BRIEF BUT BRILLIANT PRODUCING A STRING OF HITS IN THE '30S AND BY THE TIME HIS DAUGHTER WAS GROWING UP IN THE '50S HE WAS WORKING IN HOLLYWOOD AS A COMPOSER CONDUCTOR AND ARRANGER FOR THE MOVIES WHEN BABBIE SHORT FOR BABETTE LATER CHANGED BY HER PARENTS TO BARBARA VISITED HIM ONCE A YEAR SHE LOVED TAGGING ALONG ON HIS MUSICAL ROUNDS SHE REMEMBERS HIM SPLICING A CYMBAL CRASH INTO THE FILM AN AMERICAN IN PARIS IN THE LIVING ROOM I GET CHILLS THINKING ABOUT IT SHE SAYS TO BE AROUND HIM MAKING HIS MUSIC I CAN'T THINK OF ANYTHING MORE THRILLING HE WAS SO PASSIONATE ABOUT WHAT HE DID I'D BE SITTING NEXT TO HIM ON THE PODIUM IN THE HOLLYWOOD BOWL AND I'D HEAR A CELLO LINE HE WROTE HE WAS SUCH AN INCREDIBLE ARRANGER AND TO THINK THAT THAT WAS MY DADDY AND WE WERE CONNECTED WAS SO POWERFUL THE CONNECTION HAD ITS UNDERSIDE AS SHE LEARNED WHEN SHE BEGAN COMPOSING SONGS I THINK DADDY FELT VERY COMPETITIVE SHE SAYS SOMEWHERE IN HIS HEART I THINK IT KILLED HIM THAT HE DIDN'T GO ON WITH SONGWRITING SHE STUCK WITH IT HE DIDN'T AFFECT MY MUSIC HE AFFECTED HOW I FELT ABOUT MYSELF BUT SOMEHOW I NEVER LOST THE PASSION TO WRITE AND IT NEVER OCCURRED TO ME THAT I SHOULDN'T BE WRITING ALONG THE WAY SHE MARRIED HER THEATER PROFESSOR AT SMITH COLLEGE DIRECTED COLLEGE MUSICALS WITH HIM HAD TWO CHILDREN AND PLAYED PIANO IN CHAMBERMUSIC GROUPS SIXTEEN YEARS AGO NEWLY DIVORCED SHE MOVED WITH HER CHILDREN TO LOS ANGELES TO PURSUE SONGWRITING MORE INDUSTRIOUSLY PAYING THE RENT WITH MUSICPUBLISHING AND ACTING JOBS PLAYS TV AND MOVIES NUTS AND THE WITCHES OF EASTWICK SLIM AND PEPPY WITH CROPPED CARROTCOLORED HAIR AND A LARGE SMILE SHE WRITES THE KIND OF SONG THAT WOULD GO INTO A BROADWAY MUSICAL COMEDY IF THERE WERE STILL MUSICALS TO WRITE FOR IN THE OLD WAY TODAY THE LOCUS OF SERIOUS SONGWRITING ACTIVITY IS CABARETS AND OFFBROADWAY REVUES AND THERE IS MUCH GOOD WORK TO BE HEARD MS GREEN WRITES FOR THIS NEW MUSICTHEATER WORLD SHE WRITES THE MUSIC AND THE LYRICS AND OFTEN PERFORMS HER SONGS WHICH TYPICALLY SKETCH A CHARACTER OR TELL A STORY MUSICALLY HER SONGS TEND TO BE SIMPLE AND SPARE FOLKSONGLIKE IN MELODY BUT WITH TOUCHES OF RAVEL AND DEBUSSY IN THE HARMONY THE LYRICS ARE RICH IN METAPHOR AND WORDPLAY AND THE SUBJECT IS RARELY BOYMEETSGIRL ONE SONG BEGINS PEOPLE GET VERY NICE PRESENTS FOR HAVING BEEN MARRIED AS LONG AS I'VE BEEN DIVORCED IN CONTRAST TO HER PREDECESSORS THE GERSHWINS COLE PORTER JEROME KERN HAROLD ARLEN AND OTHERS WHO WROTE LOTS OF LOVE SONGS SHE DRAWS ON A WIDER CIRCLE OF EXPERIENCE A MOTHERDAUGHTER RELATIONSHIP GETTING A PUPPY AT THE POUND INDEPENDENCE THE TITLE SONG OF HER ALBUM IS ABOUT HOW SHE GREW AT THE FOOT OF A MOUNTAIN IT WAS A COLD BARREN PLACE AND ONE DAY IT CRUMBLED I'M ALL ALONE NOW AND I FEEL COMPLETE/I'M IN NOBODY'S SHADOW NOBODY'S ARMS SHE WROTE THE SONG AFTER HER FATHER AND HER EXHUSBAND DIED WITHIN 16 MONTHS OF EACH OTHER HER SONGS ARE USUALLY PERSONAL SOMETIMES EVEN TOO PERSONAL MISSING TELLS HOW CHILDREN WITH ABSENT FATHERS BECOME ARTISTS TURNING THEIR TRAUMA INTO ART THE EXPERIENCE IS NO DOUBT REAL BUT THE SONG'S EFFECT IS MELODRAMATIC EVEN POMPOUS POMPOSITY IS NOT HER STYLE TRUTHFULNESS IS AND TRUTH IN SONG IS BEST WHEN IT'S BOTH PERSONAL AND UNIVERSAL AND EVEN BETTER WHEN IT'S ALSO FUNNY I WISH IS LAUGHOUTLOUD FUNNY IT HAS WILD STREAMOFCONCIOUSNESS LYRICS ABOUT MEETING A DESIRABLE MAN WHO TURNS OUT TO BE MARRIED AND A MELODY THAT CAREENS ALL OVER THE MUSICAL STAFF I WISH I DIDN'T FIND YOU QUITE THIS DEVASTATING/I WISH I DIDN'T FIND YOU QUITE THIS LATE IN LIFE/I WISH I DIDN'T FIND OUT NOT RIGHT NOW ABOUT YOUR LOVELY RING YEAH THAT ONE I WISH CAME AT THE END OF A LONG EVENING SPENT NOODLING AROUND ON THE PIANO SEARCHING IN VAIN FOR A SONG HER DOG MOLLY WAS SCRATCHING AT THE BEDROOM DOOR ASKING TO GO TO BED AND MS GREEN SAID TO HERSELF OH JUST ONE MORE MINUTE OUT POPPED THE WORDS AND THE MUSIC FOR THE FIRST TWO LINES THAT'S OFTEN HOW THE PROCESS BEGINS FOR HER WITH THE REST OF THE SONG FOLLOWING LATER ONE WAY OR ANOTHER SHE HAS PUT TOGETHER A FIRST ALBUM OF 19 SONGS ON A SMALL NEW LABEL LOCKETTPALMER PRODUCTIONS CDS AND CASSETTES ARE AVAILABLE FROM LOCKETTPALMER AT PO BOX 85557 HOLLYWOOD CA 90072 213 6440480 SEVENTEEN WILLING FRIENDS FROM HER TWO WORLDS NEW YORK CABARET AND HOLLYWOOD PERFORM ONE SONG APIECE ANDREA MARCOVICCI MARGARET WHITING MICHAEL FEINSTEIN DAVID STALLER HER SISTER KATHE GREEN LAURIE MCINTOSH KIRSTEN BENTON AND DEBORAH TRANELLI FORMERLY JR EWING'S SECRETARY ON DALLAS MS GREEN SAVES TWO OF THE BEST SONGS FOR HERSELF AND SHE SINGS THEM IN HER VERY OWN WAN SOMETIMES COMICAL CUTSRIGHTTOTHEBONE VOICE MS ORGILL IS A WRITER IN HOBOKEN NJ 9308200136 930820 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED AUG 13 ACCOUNTED FOR 73 OR AN AVERAGE 181 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 14 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 389 INVOLVED STOCKINDEX ARBITRAGE UP FROM 245 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 489 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 45 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 61 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF SALOMON BROTHERS AND NOMURA SECURITIES EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9308200135 930820 PROBE OF ORANGE & ROCKLAND UTILITIES WIDENS TO INCLUDE A FORMER EMPLOYEE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL PEARL RIVER NY AN INVESTIGATION INTO AN ALLEGED CAMPAIGN BRIBERY SCHEME AT ORANGE & ROCKLAND UTILITIES INC HAS BROADENED TO INCLUDE A FORMER EMPLOYEE LATE THURSDAY NORTHEAST UTILITIES CO HARTFORD CONN SAID IT HAD SUSPENDED PAUL PICKARD ITS DIRECTOR OF CORPORATE COMMUNICATIONS WITH PAY ADDING THAT HE IS THE OBJECT OF A CRIMINAL INVESTIGATION IN ROCKLAND COUNTY NY INVOLVING CERTAIN POTENTIALLY UNLAWFUL ACTIVITIES ARISING FROM THE TIME HE WAS EMPLOYED BY ORANGE & ROCKLAND UTILITIES NORTHEAST UTILITIES SAID IT HAS LAUNCHED AN INTERNAL INQUIRY CONCERNING MR PICKARD THE FORMER ORANGE & ROCKLAND EMPLOYEE JOINED NORTHEAST UTILITIES IN JULY 1992 LATE YESTERDAY MR PICKARD COULDN'T BE REACHED FOR COMMENT SEPARATELY A GROUP OF ORANGE & ROCKLAND CUSTOMERS FILED A CIVIL RACKETEERING LAWSUIT CLAIMING THEY WERE HURT BY THE ALLEGED VIOLATION OF CAMPAIGN CONTRIBUTION LAWS THE LAWSUIT FILED IN FEDERAL COURT IN WHITE PLAINS NY SEEKS CLASSACTION CERTIFICATION AND 900 MILLION IN DAMAGES WE INTEND TO RESPOND TO THE SUIT IN COURT WITH THE FACTS SAID JAMES F SMITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT ORANGE & ROCKLAND SINCE THERE IS ALSO AN ONGOING CRIMINAL INVESTIGATION WE ARE UNABLE TO COMMENT FURTHER AT THIS TIME IN NEW YORK STOCK EXCHANGE TRADING ORANGE & ROCKLAND SHARES EASED 1125 TO 45125 IN HEAVY TRADING MORE THAN 89200 SHARES TRADED HANDS UP FROM THE DAILY AVERAGE OF 14160 SHARES THIS WEEK COUNTY OFFICIALS ARRESTED LINDA WINIKOW THE UTILITY'S VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS ON CHARGES RELATED TO AN ALLEGED CAMPAIGN FUNDING SCHEME OFFICIALS CHARGED THAT SHE ARRANGED FOR OTHERS TO MAKE CAMPAIGN CONTRIBUTIONS AND THEN REIMBURSED THEM WITH CORPORATE FUNDS DISGUISED AS OTHER EXPENSES MS WINIKOW A FORMER STATE SENATOR WAS RELEASED ON HER OWN RECOGNIZANCE AND PLACED ON PAID LEAVE SHE FACES CHARGES OF GRAND LARCENY BRIBETAKING AND MAKING ILLEGAL ELECTION CONTRIBUTIONS THROUGH HER ATTORNEY SHE DECLINED TO COMMENT THE INVESTIGATION ALSO PROMPTED CREDIT RATING AGENCY DUFF & PHELPS TO PLACE ORANGE & ROCKLAND'S RATINGS ON ITS WATCH LIST WITH UNFAVORABLE IMPLICATIONS A 171 MILLION RATEINCREASE REQUEST IS BEFORE NEW YORK STATE REGULATORS 9308200134 930820 FINANCING BUSINESS WESTERN RESOURCES INC WESTERN RESOURCES INC SAID ITS PUBLIC OFFERING OF THREE MILLION NEW COMMON SHARES WAS PRICED AT 3625 A SHARE PROCEEDS FROM THE OFFERING BEING MANAGED BY SMITH BARNEY SHEARSON INC AND DILLON READ & CO WILL BE USED TO REDUCE DEBT AND FOR GENERAL CORPORATE PURPOSES WESTERN A TOPEKA KAN NATURAL GAS AND ELECTRIC UTILITY HOLDING COMPANY HAS 581 MILLION SHARES OUTSTANDING 9308200133 930820 MATTEL TO BUY FISHERPRICE IN 11 BILLION STOCK SWAP COMBINING STRONG BRANDS WOULD CREATE TOY FIRM TO RIVAL HASBRO INC BY PAULINE YOSHIHASHI AND JOSEPH PEREIRA STAFF REPORTERS OF THE WALL STREET JOURNAL MATTEL INC AGREED TO ACQUIRE FISHERPRICE INC IN A 11 BILLION STOCK SWAP CREATING A BRANDNAME TOY POWERHOUSE THAT WOULD RIVAL HASBRO INC AS THE INDUSTRY'S BIGGEST PLAYER THE TRANSACTION WOULD COMBINE MATTEL'S STRONG BRANDS SUCH AS BARBIE HOT WHEELS DIECAST CARS AND DISNEY INFANT AND PRESCHOOL TOYS WITH FISHERPRICE'S HIGHPROFILE INFANT AND PRESCHOOL LINES CEMENTING MATTEL'S CONTINUING STRATEGY OF PURSUING GLOBAL BRAND GROWTH IT ALSO WOULD LESSEN THE COMPANY'S RELIANCE ON BARBIE THE WORLD'S BESTSELLING DOLL WHICH ACCOUNTED FOR ABOUT HALF OF 1992 SALES THIS TRANSACTION WILL GIVE US BALANCE IN OUR GLOBAL BRANDS SAID JOHN W AMERMAN MATTEL CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE'D LIKE TO EXPAND FISHERPRICE THROUGH MATTEL'S MARKETING NETWORK IN 31 COUNTRIES AROUND THE WORLD ABOUT HALF OF MATTEL'S 1992 SALES OF 185 BILLION WERE GENERATED INTERNATIONALLY COMPARED WITH ABOUT A QUARTER OF FISHERPRICE'S SALES OF 6939 MILLION FOR THE YEAR ENDED JAN 3 UNDER THE AGREEMENT EACH SHARE OF FISHERPRICE STOCK WOULD BE SWAPPED FOR 1275 MATTEL COMMON SHARES IN A TAXFREE EXCHANGE BASED ON MATTEL'S 105 MILLION COMMON SHARES OUTSTANDING AND FISHERPRICE'S 33 MILLION COMMON SHARES OUTSTANDING FULLY DILUTED THE TRANSACTION WOULD HAVE AN INDICATED VALUE OF ABOUT 11 BILLION THAT PRICE IS BEFORE THE ASSUMPTION OF FISHERPRICE'S 144 MILLION IN DEBT AS OF DEC 31 1992 THE ACCORD WAS ANNOUNCED AFTER THE CLOSE OF THE MARKETS MATTEL'S AND FISHERPRICE'S STOCK FINISHED UNCHANGED AT 25625 AND 23875 RESPECTIVELY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE TRANSACTION WHICH IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL IS EXPECTED TO BE COMPLETED BY DEC 1 THE COMPANIES SAID RONALD J JACKSON FISHERPRICE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL JOIN MATTEL'S BOARD ALONG WITH TWO OUTSIDE FISHERPRICE DIRECTORS JOHN MULLIN III AND RETIRED COMPANY PRESIDENT ROBERT KINNEY THE ADDITIONS WILL EXPAND MATTEL'S BOARD TO 14 MEMBERS MR AMERMAN SAID THE TRANSACTION IS THE LATEST STEP IN THE TREND TOWARD CONSOLIDATION IN THE TOY INDUSTRY IN THE 1990S FOLLOWING THE HIGHFLYING 1980S TOY COMPANIES HAVE BEEN SEEKING GROWTH MORE THROUGH BROADBASE PORTFOLIOS OF TOYS AND GAMES INSTEAD OF DEVELOPING THE NEXT MEGAHIT LAST YEAR TYCO TOYS INC BOUGHT UNIVERSAL MATCHBOX GROUP LTD AND ILLCO TOY CO IN TWO SEPARATE DEALS ALSO PENDING IS RUSS BERRIE & CO'S ACQUISITION OF CAP TOYS INC ANALYSTS SAID THAT MATTEL BASED IN EL SEGUNDO CALIF IS PAYING A PREMIUM FOR FISHERPRICE BASED ON THE COMPANY'S ANNUAL REVENUE OTHER ACQUISITIONS DURING THE PAST THREE YEARS SUCH AS HASBRO'S 1991 PURCHASE OF TONKA CORP FOR 486 MILLION HAVE BEEN AT VALUATIONS LOWER THAN NET ANNUAL SALES SAID DAVID LEIBOWITZ ANALYST FOR REPUBLIC NEW YORK SECURITIES CORP STRATEGICALLY HOWEVER FISHERPRICE WILL REDUCE MATTEL'S RELIANCE ON THE COMPANY'S MOST IMPORTANT BRAND THE PERENNIAL BESTSELLER BARBIE THE 34YEAROLD CLOTHESHORSE RANG UP 965 MILLION IN SALES LAST YEAR AND WILL HIT THE 1 BILLION SALES MARK THIS YEAR BUT SOME INDUSTRY OBSERVERS HAVE BEGUN TO QUESTION JUST HOW MUCH FURTHER HER SPINDLY PLASTIC LEGS CAN CARRY HER MR AMERMAN SAID BARBIE WILL ACCOUNT FOR 40 OR LESS OF THE COMBINED COMPANY'S REVENUE AND THAT COMBINED BARBIE FISHERPRICE HOT WHEELS AND THE DISNEY LINES WILL ACCOUNT FOR ABOUT 85 OF SALES VOLUME OR MORE THAN 2 BILLION ANNUALLY THIS WILL BE A VERY BIG COMPANY WHOSE BALANCE SHEET WILL HAVE AROUND 600 MILLION IN CASH SHAREHOLDERS' EQUITY OF 12 BILLION AND LONGTERM DEBT OF 375 MILLION MR AMERMAN SAID WALL STREET OBSERVERS GENERALLY PRAISED THE MOVE AS A STRATEGIC COUP IT WILL HELP FISHERPRICE GET A LEG UP INTERNATIONALLY AND MATTEL HAS CLEARLY PUT TOGETHER A MANAGEMENT TEAM THAT CAN MANAGE THE ACQUISITION WITHOUT A HICCUP SAID GARY JACOBSON AN ANALYST WITH KIDDER PEABODY MOREOVER BY REDUCING MATTEL'S RELIANCE ON BARBIE MORE INVESTORS MAY BE ATTRACTED BY THE COMPANY'S STRONG INDUSTRY POSITION SOLID BALANCE SHEET AND OTHER ATTRIBUTES HE NOTED EVEN SO A FEW OBSERVERS PRIVATELY RAISED SOME CONCERNS ABOUT THE PRESCHOOL MARKET IN GENERAL INCLUDING THE FACT THAT YOUNG CHILDREN QUICKLY OUTGROW TEETHING RINGS AND DEVELOPMENTAL TOYS IN FAVOR OF MORE MATURE FARE ALTHOUGH THE TOY INDUSTRY REVOLVES MORE ON HOT PRODUCTS THAN BRAND NAMES THE FISHERPRICE LABEL HAS GROWN IN RECENT YEARS AND REPRESENTS STURDY AND SAFE PRODUCTS IN THE MINDS OF MANY CONSUMERS PARTLY BECAUSE OF THIS MATTEL HAD APPROACHED THE EAST AURORA NY COMPANY TWO YEARS AGO WHEN FISHERPRICE WAS ABOUT TO BE SPUN OFF FROM QUAKER OATS INC UNDER A STANDSTILL AGREEMENT SIGNED IN FEBRUARY 1991 MATTEL WAS PERMITTED TO LOOK AT FISHERPRICE'S BOOKS ON THE PROVISO THAT THE TOY MANUFACTURER WOULD NOT ACQUIRE FISHERPRICE FOR 18 MONTHS THAT OVERTURE CAME AT A TIME WHEN BOTH MATTEL AND HASBRO BASED IN PAWTUCKET RI WERE VYING TO BUY TONKA HASBRO OUTBID MATTEL AND BECAME THE LARGEST TOY MAKER IN THE INDUSTRY THE CURRENT ROUND OF NEGOTIATIONS MOVED SWIFTLY OVER ABOUT FIVE TO SIX WEEKS' TIME AND WERE INITIATED BY MATTEL A MATTEL SPOKESMAN SAID THE FISHERPRICE ACQUISITION PUTS MATTEL IN A NECKANDNECK CONTEST WITH HASBRO FOR THE NO 1 INDUSTRY POSITION HASBRO WHOSE STABLE OF BRANDS INCLUDES THE MONOPOLY BOARD GAME AND GI JOE ACTION FIGURES REPORTED 1992 REVENUE OF 254 BILLION DESPITE ITS GOOD NAME FISHERPRICE'S BUSINESS HAS SLOWED DURING THE PAST SIX MONTHS FOR THE 26 WEEKS ENDED JULY 4 NET INCOME DECLINED 57 TO 52 MILLION OR 17 CENTS A SHARE WHILE SALES FELL 5 TO 2848 MILLION THE COMPANY BLAMED RETAILER CAUTION FOR THE SLOWDOWN RETAILERS IN RECENT MONTHS HAVE BEEN LOOKING MOSTLY FOR HOT PRODUCTS TO DRAW CUSTOMERS INTO THEIR STORES AND FISHERPRICE'S MIX OF STEADYSELLING EDUCATIONAL TOYS AND INFANT PRODUCTS ISN'T GIVEN TO PRODUCING MANY BLOCKBUSTERS ANALYSTS SAID MATTEL'S 1992 NET INCOME MEANWHILE WAS 1439 MILLION OR 143 A SHARE MR AMERMAN AND A FISHERPRICE SPOKESWOMAN SAID IT HAS YET TO BE DETERMINED WHAT ROLES VARIOUS FISHERPRICE EXECUTIVES WILL PLAY AFTER THE TRANSACTION FISHERPRICE WILL CONTINUE TO BE BASED IN EAST AURORA MR AMERMAN ADDED 9308200132 930820 POLITICS & POLICY SOME SAY ALLWORKNOPLAY CLINTON MEANS PRESIDENCY LACKING PERSPECTIVE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS TIME FOR A VACATION SAYS PRESIDENTIAL HISTORIAN FRED GREENSTEIN OF PRINCETON UNIVERSITY BUT PRESIDENT CLINTON DOESN'T SEEM TO WANT TO OBLIGE LAST WEEK HE LEFT HERE FOR A SUMMER VACATION URGING HIS STAFF TO DO THE SAME IF YOU'RE RESTED AND HAPPY AND UPBEAT YOU'LL ALSO DO A BETTER JOB FOR THE UNITED STATES HE SAID BUT YESTERDAY HE WAS BACK AT WORK ATTENDING TO SUCH MATTERS AS THE APPOINTMENT OF WILLIAM DALEY TO OVERSEE THE CAMPAIGN FOR THE EMBATTLED FREETRADE AGREEMENT AND THIS WAS AFTER A WEEK OF REST IN COLORADO AND ARKANSAS DURING WHICH BESIDES VISITING WITH THE POPE IN DENVER HE SIGNED A BILL IN ST LOUIS AND MADE A MAJOR HEALTHCARE ADDRESS IN TULSA OKLA NOW HE IS OFF AGAIN TO MARTHA'S VINEYARD MASS WHERE HIS DOGTIRED AIDES INSIST HE WILL TRY TO SPEND 11 DAYS RELAXING BUT IT'S ABUNDANTLY CLEAR FROM HIS VACATION SO FAR THAT BILL CLINTON IS ALLERGIC TO SITTING STILL AND SOME SAY THAT IS CAUSING PROBLEMS FOR HIS PRESIDENCY IN PARTICULAR HIS RESTLESSNESS IS LEADING TO AN OVERCROWDED AGENDA DESPITE WARNINGS FROM ADVISERS THAT HE SHOULD PARE HIS PRIORITIES MR CLINTON INSISTS ON UNDERTAKING THREE HUGE PROJECTS AT ONCE OVERHAULING THE HEALTHCARE SYSTEM RATIFYING THE FREETRADE AGREEMENT AND REORGANIZING THE FEDERAL BUREAUCRACY FROM THE STANDPOINT OF HIS PRESIDENCY ONE HOPES THAT THIS BREAK WOULD GIVE HIM THE OCCASION TO GET SOME PERSPECTIVE TO FOCUS AND SET SOME PRIORITIES SAYS PRINCETON'S MR GREENSTEIN IN THE MEANTIME HE SAYS THAT MR CLINTON'S HYPERKINETIC HAVEITALL STYLE UNDERMINES THE PRESIDENT'S AUTHORITY AND IMPAIRS HIS ABILITY TO WIN THE BATTLES HE CHOOSES TO FIGHT CLINTON IS THE TYPE OF PUBLIC OFFICIAL WHO NEEDS TO HAVE CONSTANT ACTIVITY AND FINDS IT HARD TO HAVE RECREATION THAT ISN'T RELATED TO THE JOB SAYS JAMES THURBER A PRESIDENTIAL SCHOLAR AT AMERICAN UNIVERSITY IN WASHINGTON THE DIFFICULTY COMES WHEN THOSE TYPES OF PEOPLE DO TOO MUCH AND THINGS GET CLOGGED TO BE SURE MR CLINTON SAYS HE REALLY INTENDS TO VACATION THIS TIME THE SUICIDE OF VINCENT FOSTER A CLINTON AIDE AND FRIEND HAS BEEN A STARK REMINDER THAT WORK SHOULDN'T BE ALLCONSUMING SO FAR THOUGH MR CLINTON HAS BEEN INCAPABLE OF HEEDING HIS OWN ADVICE PREVIOUS PRESIDENTS EVEN ONES AS ENERGETIC AND AMBITIOUS AS MR CLINTON CAREFULLY MODULATED THEIR EFFORTS FRANKLIN ROOSEVELT FOR EXAMPLE WAS KNOWN AS A BIG VACATIONER FOREVER LEAVING TOWN TO FISH OR TO ENJOY THE SPAS IN WARM SPRINGS GA FDR UNDERSTOOD THE POLITICAL AS WELL AS PERSONAL REASONS FOR A PRESIDENT TO PACE HIMSELF THE PUBLIC HE SAID CAN'T ALWAYS BE ATTUNED TO THIS HIGHEST PITCH ON THE SCALE BY CONTRAST MR CLINTON HAD TO BE PUSHED BY HIS AIDES TO TAKE THIS VACATION AT ALL THAT REPEATS A LONGESTABLISHED PATTERN AS GOVERNOR OF ARKANSAS HE WOULD TAKE ONLY A FEW DAYS OFF USUALLY AROUND THE SUMMER AND THAT WOULD BE IT HE RECENTLY ADMITTED THAT HE HASN'T TAKEN MORE THAN A FOURDAY HOLIDAY IN THE PAST FOUR YEARS NO DAYS OFF NO HOURS OFF RECALLS JOAN WATKINS HIS FORMER GUBERNATORIAL PRESS SECRETARY HE JUST HAS A PHENOMENAL AMOUNT OF ENERGY MR CLINTON STILL SHOWS NO SIGN OF LETTING UP NOW EVEN WHEN HE IS AT PLAY ON A STOPOVER IN HAWAII LAST MONTH HE PLAYED 36 HOLES OF GOLF IN ONE DAY ENDING WITH SWEAT POURING DOWN HIS CHEEKS AFTER THE SUN HAD SET MR CLINTON'S PREDECESSOR PRESIDENT BUSH WAS ALSO EXTREMELY ACTIVE AT LEISURE PLAYING SPEED GOLF AND RUNNING AROUND IN HIS CIGARETTE BOAT OFF THE COAST OF MAINE BUT UNLIKE MR BUSH MR CLINTON TENDS TO COMBINE RELAXATION WITH WORK AIDES SAY MR CLINTON ALWAYS KEEPS HIS BLACK BINDERS FULL OF BRIEFING MATERIALS CLOSE AT HAND AND GETS ENERGIZED BY TALKING ABOUT POLICY OPTIONS OVER DINNER INDEED TO MR CLINTON WORK IS RECREATION ON A RECENT FRIDAY NIGHT HE SPENT NEARLY THREE HOURS IN A MEETING OVER THE TEDIOUS SUBJECT OF COMBINING THE HEALTH PLANS OF GOVERNMENT AGENCIES AT THE END OF THE MEETING MR CLINTON STRETCHED AND SAID THAT WAS FUN AND MEANT IT 9308200131 930820 DART'S MAJORITY OWNERSHIP IS SHIFTED TO THE YOUNGER SON BY HERBERT HAFT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HERBERT HAFT THE EMBATTLED PATRIARCH OF THE FEUDING HAFT FAMILY TRANSFERRED MAJORITY OWNERSHIP OF THE HAFT RETAILING EMPIRE TO THE ONLY FAMILY ALLY HE HAS LEFT HIS YOUNGER SON THE TRANSFER APPEARS AIMED AT INSULATING HERBERT HAFT'S STAKE FROM BEING DIVIDED IN A DIVORCE HIS WIFE OF 46 YEARS GLORIA HAFT FILED A LAWSUIT LAST WEEK SEEKING A LEGAL SEPARATION AND A MAJOR SHARE OF THE FAMILY ASSETS THE TRANSFER INCLUDES THE SALE OF SHARES AND STOCK OPTIONS TO MR HAFT'S SON AT PRICES THAT SOME ANALYSTS SAY ARE SHARPLY LOWER THAN THE UNDERLYING VALUE OF THE FAMILY COMPANIES AND REQUIRES LITTLE UPFRONT INVESTMENT BY THE HAFT SCION IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR HAFT DISCLOSED THAT HE HAS SOLD HIS 57 STAKE IN DART GROUP CORP WHICH OWNS MAJORITY STAKES IN CROWN BOOKS CORP AND TRAK AUTO CORP TO HIS YOUNGER SON RONALD S HAFT BUT THE FATHER RETAINS HIS RIGHT TO VOTE THOSE SHARES THROUGH PROXY UNTIL HIS DEATH THE FILING ALSO SAYS THAT DART GROUP'S BOARD WHICH WAS RESHUFFLED BY HERBERT HAFT AFTER HE OUSTED HIS WIFE AND SON ROBERT IN JUNE HAS SOLD TO RONALD OPTIONS TO BUY ADDITIONAL SHARES IF ISSUED THOSE SHARES WOULD BOOST RONALD HAFT'S HOLDINGS TO 79 OF THE DART VOTING STOCK PEOPLE IN THE OPPOSING CAMP WHICH INCLUDES ONETIME SUCCESSOR ROBERT MRS HAFT AND THE ELDEST CHILD LINDA ALLEGE THAT THE TRANSFER IS AN ATTEMPT BY THE SENIOR MR HAFT TO INSULATE HIS ASSETS FROM THE NEW THREAT OF A DIVORCE A PRELIMINARY HEARING ON MRS HAFT'S LAWSUIT IS SET FOR TODAY IN A DISTRICT OF COLUMBIA SUPERIOR COURT TO RULE ON HER REQUEST FOR AN INJUNCTION PREVENTING MR HAFT FROM DEPLETING ANY ASSETS IN THE FAMILY COMPANIES THE TRANSFER OF SHARES TO THE FAMILY'S YOUNGEST MEMBER MAY VIOLATE AN AGREEMENT SIGNED BY ALL FIVE HAFT FAMILY MEMBERS IN APRIL 1985 THAT AGREEMENT A COPY OF WHICH WAS OBTAINED BY THIS NEWSPAPER STATES THAT NO SHAREHOLDER DURING HIS OR HER LIFETIME SHALL TRANSFER ANY COMMON STOCK OF DART WITHOUT THE PRIOR WRITTEN CONSENT AND APPROVAL OF ALL THE OTHER SHAREHOLDERS ON HEARING OF THE FILING ROBERT HAFT SAID YESTERDAY UNFORTUNATELY MY FATHER IS NOW TRYING TO HIDE HIS CONTROL OF DART IN MY BROTHER'S POCKET IT'S IMPOSSIBLE TO BELIEVE HE WOULD DO THIS TO DART'S SHAREHOLDERS OR HIS FAMILY MRS HAFT COULDN'T BE REACHED AND CALLS TO HER ATTORNEY WEREN'T RETURNED HERBERT HAFT'S LAWYER ALSO DIDN'T RETURN A CALL LATE YESTERDAY FOR COMMENT ON THE FILING RONALD HAFT COULDN'T BE REACHED THE FILING STATES THAT HERBERT HAFT SOLD HIS 172730 SHARES OF DART'S CLASS B DART VOTING STOCK JULY 28 FOR 80 A SHARE TO RONALD THE 34YEAROLD WHOM HE TAPPED AS DART PRESIDENT AFTER FIRING ROBERT YET RONALD WAS REQUIRED TO PAY ONLY ABOUT 28 MILLION FROM HIS PERSONAL SAVINGS OF THE TOTAL 138 MILLION REQUIRED TO BUY THE SHARES WITH THE REST COVERED BY A PROMISSORY NOTE BEARING INTEREST AT 661 THE FILING STATES ALTHOUGH THE 80ASHARE PRICE IS CLOSE TO WHERE DART GROUP CLASS A STOCK HAS TRADED RECENTLY IT IS WELL UNDER WHAT ANALYSTS ESTIMATE THE ASSETS OF THE COMPANY ARE WORTH ROBERT ROBOTTI OF ROBOTTI & ENG A WALL STREET FIRM THAT MAKES A MARKET IN DART SHARES ESTIMATED LAST WEEK THAT DART SHARES ARE REALLY WORTH 138 TO 170 DART CLASS A SHARES CLOSED YESTERDAY AT 8050 UNCHANGED IN NATIONAL OVERTHECOUNTER TRADING THE STOCK OPTIONS ACCORDING TO THE FILING WERE SOLD TO RONALD BY THE NEWLY CONSTITUTED BOARD AS PART OF AN EMPLOYMENT AGREEMENT DATED AUG 1 ON THAT DATE RONALD WAS MADE PRESIDENT AND CHIEF OPERATING OFFICER OF DART GROUP DESPITE WHAT HIS MOTHER CLAIMED IN HER LAWSUIT IS A COMPLETE LACK OF RETAILING EXPERIENCE THE FILING ALSO REPORTS THAT RONALD BOUGHT FOR 5 EACH OPTIONS TO ACQUIRE 197048 SHARES OF DART'S CLASS B COMMON FOR A TOTAL OF 985240 THE EXERCISE PRICE ON THE OPTIONS IS 8965 A SHARE ACCORDING TO THE FILING AND THEY ARE EXCERCISABLE IMMEDIATELY ALSO AS PART OF THE EMPLOYMENT AGREEMENT THE COMPANY AGREED TO LEND RONALD THE FULL AMOUNT OF THE EXERCISE PRICE OF ANY OPTIONS WHICH HE MAY EXERCISE IT WASN'T CLEAR YESTERDAY HOW GLORIA AND ROBERT HAFT MAY PROCEED IN RESPONSE TO THE LATEST MOVE BY HERBERT HAFT BUT THE OWNERSHIP TRANSFER IS LIKELY TO BECOME EMBROILED IN THE LEGAL BACKANDFORTH THAT HAS OVERTAKEN THE FAMILY FOR THE PAST THREE MONTHS THERE ISN'T ANY QUESTION THAT THIS TRANSFER OF DART GROUP'S CONTROL TO RONALD WILL BE CHALLENGED SAID ONE PERSON CLOSE TO THE DISPUTE THE LATEST MOVE BY MR HAFT ONLY SERVES TO MAKE EVEN MORE BYZANTINE THE ESCALATING FAMILY FEUD IN ADDITION TO MRS HAFT SUING HER HUSBAND HER SON ROBERT HAS SUED HERBERT AS WELL CLAIMING HE IS OWED MORE THAN 9 MILLION UNDER AN EMPLOYMENT CONTRACT THAT HIS FATHER HAS ALLEGEDLY BREACHED BY FIRING HIM THIS WEEK LINDA 43 ALSO SUED HER FATHER AND BROTHER RONALD ALLEGING FRAUD AND BREACH OF FIDUCIARY DUTY BUT LINDA'S SUIT IN WHICH ROBERT IS ALSO A PLAINTIFF MOSTLY COVERS THE FAMILY'S PRIVATE HOLDINGS PRINCIPALLY COMBINED PROPERTIES INC A PORTFOLIO OF SHOPPING MALLS 9308200130 930820 INTERNATIONAL MERGER PLAN PROPOSES MAKING EVERGO A UNIT OF CHINESE ESTATES SPECIAL TO THE WALL STREET JOURNAL HONG KONG EVERGO INTERNATIONAL HOLDINGS CO AND CHINESE ESTATES HOLDINGS LTD PROPOSED A MERGER WHERE EVERGO WOULD BECOME A 100OWNED SUBSIDIARY OF CHINESE ESTATES IN A SHARE SWAP CURRENTLY THE COMPANIES ARE CONTROLLED BY JOSEPH LAU CHAIRMAN OF BOTH MR LAU AND ASSOCIATES OWN ABOUT 74 OF EVERGO WHICH OWNS SLIGHTLY MORE THAN 70 OF CHINESE ESTATES AFTER THE MERGER WHICH WOULD INVOLVE A SWAP OF EVERGO SHARES AND WARRANTS FOR NEW SHARES AND WARRANTS IN CHINESE ESTATES MR LAU AND ASSOCIATES WOULD OWN BETWEEN 3451 AND 4735 OF CHINESE ESTATES INVESTORS WOULD RECEIVE 4224 NEWLY ISSUED SHARES OF CHINESE ESTATES FOR EVERY 4000 EVERGO SHARES HELD HOLDERS ALSO WOULD GET 1505 CHINESE ESTATES SHARE PURCHASE WARRANTS FOR EVERY 6000 WARRANTS IN EVERGO THE ARRANGEMENT CONSIDERS EVERGO AT A NET ASSET VALUE OF 823 HONG KONG DOLLARS US106 A SHARE AT JUNE 30 AND CHINESE ESTATES AT A NET ASSET VALUE OF HK779 A SHARE ON AUG 17 THERE WERE 817 MILLION EVERGO SHARES OUTSTANDING ASSUMING NO EXERCISE OF EVERGO WARRANTS SINCE JUNE 30 ABOUT 8627 MILLION NEW SHARES IN CHINESE ESTATES AND ABOUT 521 MILLION NEW WARRANTS IN CHINESE ESTATES WOULD BE ISSUED UNDER THE PROPOSED MERGER ASSUMING ALL OF THE WARRANTS WERE EXERCISED 9366 MILLION NEW CHINESE ESTATES SHARES WOULD BE EXERCISED TOTAL ASSETS OF CHINESE ESTATES WERE VALUED AT HK945 BILLION US122 BILLION WHILE THOSE OF EVERGO WERE VALUED AT HK465 BILLION ON DEC 31 MR LAU SAID THE MERGER SHOULD BE COMPLETED BY DEC 31 9308200129 930820 GERMAN BONDS DRAW INTEREST FROM FOREIGNERS TRADITIONAL HAVEN STATUS SIZE OF MARKET WORK TO ATTRACT INVESTORS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMANS MAY GRUMBLE ABOUT FOOTING THE BILL FOR UNIFICATION BUT THEY ARE GETTING PLENTY OF HELP IN THE FORM OF A MASSIVE INFLUX OF FOREIGN INVESTMENT INTO THE GERMAN GOVERNMENT BOND MARKET FOREIGNERS ARE BASICALLY FUNDING OUR PUBLICSECTOR DEFICIT SAYS KLAUS HOLSCHUH HEAD OF FIXEDINCOME RESEARCH AT COMMERZBANK AG IN FRANKFURT HE ESTIMATES FUNDS EQUIVALENT TO NEARLY 260 BILLION MARKS 15481 BILLION POURED INTO GERMAN BONDS PRIMARILY GOVERNMENT ISSUES FROM OUTSIDE THE COUNTRY OVER THE PAST 12 MONTHS THROUGH JUNE INVESTORS ARE ATTRACTED BY GERMANY'S TRADITIONAL HAVEN STATUS AND THE SHEER SIZE OF THE MARKET GERMANY'S IS THE WORLD'S THIRDLARGEST GOVERNMENT BOND MARKET ACCOUNTING FOR 10 OF THE TOTAL AND THE FASTESTGROWING IN EUROPE MANY INVESTORS FEEL THEIR PORTFOLIO IS INCOMPLETE WITHOUT BUNDS THE MOST WELLKNOWN GOVERNMENT BOND GETTING INTO GERMAN BONDS IS RELATIVELY EASY THEY ARE SOLD BY NEARLY ALL COMMERCIAL BANKS AND BROKERAGE HOUSES AND THE HIGH VISIBILITY OF THE GERMAN MARKET MAKES THEM EASY TO FOLLOWEVEN FROM OTHER COUNTRIES WITHIN EUROPE ANALYSTS CONSIDER GERMAN BONDS SECOND ONLY TO BRITISH GILTS IN TERMS OF SOPHISTICATION OF THE MARKET AND THE QUALITY OF RESEARCH AVAILABLE GERMAN BONDS ARE PART OF NEARLY EVERY MAJOR PORTFOLIO SO MOST BANKS IN THE WORLD KNOW A LOT ABOUT THEM SAYS JOACHIM FELS AN ECONOMIST AT GOLDMAN SACHS IN FRANKFURT THE TWO ISSUES PREFERRED BY FOREIGN INVESTORS ARE BUNDS SHORT FOR BUNDESANLEIHEN AND BUNDESOBLIGATIONEN KNOWN BY MARKET INSIDERS AS BOBLS PRONOUNCED BOBBLES THE MAIN DIFFERENCE BETWEEN THE TWO IS THAT BOBLS ARE ISSUED WITH FIVEYEAR MATURITIES WHILE BUNDS HAVE 10YEAR MATURITIES THE BULK OF GOVERNMENT BONDS PAY THE SAME ANNUAL INTEREST OVER THE LIFE OF THE BOND AND DON'T CARRY A PROVISION FOR EARLY REDEMPTION YIELDS ON 10YEAR BUNDS HAVE DRIFTED DOWN STEADILY THIS YEAR AND NOW STAND AT 632 UNTIL A FEW YEARS AGO BUNDS WERE THE MAIN BORROWING VEHICLE FOR THE BONN GOVERNMENT BUT THE OPENING OF THE BERLIN WALL HAS TRANSFORMED THE MARKET FACED WITH HUGE BUDGET SHORTAGES THE GERMANS BEGAN CREATING FORMS OF BONDS AND EXPANDING USE OF EXISTING ONES FOR INSTANCE THE TREUHANDANSTALT THE PRIVATIZATION AGENCY SELLING FORMER EAST GERMAN COMPANIES NOW REGULARLY TAPS THE BOND MARKET TO COVER ITS DEFICIT THE BUNDESBANK IS THE ISSUING AGENT FOR THE PRIVATIZATION AGENCY'S FIVEYEAR NOTES WHICH CARRY THE GOVERNMENT'S UNCONDITIONAL GUARANTEE THERE ARE ALSO SIMILAR BONDS ISSUED ON BEHALF OF THE GERMAN UNITY FUND ESTABLISHED BY BONN TO HELP TO PAY THE COSTS OF REBUILDING EASTERN GERMANY THROUGH 1994 AS WELL AS THE EUROPEAN RECONSTRUCTION PROGRAM A RELIC OF THE MARSHALL PLAN WHICH NOW ASSISTS SMALL AND MEDIUMSIZED COMPANIES WITH SUBSIDIZED LOANS YET ANOTHER CATEGORY OF GOVERNMENT BONDS IS ISSUED BY THE GERMAN RAILWAY AND POST OFFICE MOST FOREIGN INVESTORS STEER CLEAR OF THESE HOWEVER BECAUSE THEY AREN'T EXPLICITLY GOVERNMENTBACKED FOREIGNERS ARE EXEMPT FROM GERMANY'S 30 WITHHOLDING TAX ON INTEREST INCOME UNLESS THEY LIVE IN GERMANY MORE THAN 183 DAYS A YEAR BUT EVEN MANY GERMANS ELUDE THE TAX ANALYSTS ESTIMATE AS MUCH AS A THIRD OF THE MONEY FLOWING INTO THE BOND MARKET FROM ABROAD IS REALLY GERMAN MONEY FROM GERMAN NATIONALS AND RESIDENTS FUNNELED THROUGH ACCOUNTS SET UP FOR THIS PURPOSE IN PLACES SUCH AS LUXEMBOURG AND SWITZERLAND MANY OF THE LARGER BANKS AND BROKERAGE FIRMS HOLD INVENTORIES OF GERMAN BONDS WHICH THEY SELL IN ODDLOTS TO RETAIL CUSTOMERS THE MINIMUM PURCHASE IS USUALLY 20000 MARKS OR MORE SOME SMALLER INVESTORS MEANWHILE OPT TO INVEST IN MANAGED PORTFOLIOS THAT CONCENTRATE ON BONDS RATHER THAN PLUNGE DIRECTLY INTO A FOREIGN BOND MARKET THESE FUNDS ARE SIMILAR TO MUTUAL FUNDS THAT FOCUS ON CERTAIN TYPES OF STOCKS ADVISERS SAY MANAGED PORTFOLIOS ARE PARTICULARLY GOOD FOR INVESTORS SEEKING THEIR FIRST EXPOSURE TO A FOREIGN BOND MARKET THE FIRST QUESTION TO ASK YOURSELF AS A FOREIGN INVESTOR IN GERMANY SAYS TIM TAYLOR EXECUTIVE DIRECTOR OF MERRILL LYNCH INTERNATIONAL BANK IN LONDON IS WHETHER YOU WANT THE CURRENCY RISK LINKED TO BUYING A GERMAN BOND IF YOU CHANGE DOLLARS OR POUNDS INTO MARKS TO BUY A GERMAN BOND THERE IS ALWAYS THE RISK THAT WHEN IT COMES TIME TO TRANSFER INTEREST AND PRINCIPAL BACK HOME THE EXCHANGERATE WILL HAVE CHANGED UNFAVORABLY THIS WOULD CUT PROFIT AND DIMINISH THE PRINCIPAL SIMILARLY HOWEVER AN UPWARD APPRECIATION OF THE MARK AGAINST YOUR HOME CURRENCY COULD MAGNIFY PROFITS IF YOU DECIDE TO TAKE THAT RISK THE NEXT QUESTION IS WHAT YOU EXPECT WILL HAPPEN TO THE GERMAN ECONOMY AS IN ANY BOND MARKET GERMAN BOND PRICES ARE INVERSELY LINKED TO LONGTERM INTEREST RATES A JUMP IN INTEREST RATES MEANS PRICES FOR FIXEDINCOME SECURITIES GO DOWN MANY ANALYSTS SAY THEY SEE LITTLE LEEWAY FOR CONSIDERABLE DOWNWARD MOVEMENT IN RATES SOON SOME EVEN PREDICT LONGTERM INTEREST RATES WILL RISE NEXT YEAR GLENN WHITNEY IN LONDON CONTRIBUTED TO THIS ARTICLE 9308200128 930820 FINANCING BUSINESS UNICARE FINANCIAL CORP UNICARE FINANCIAL CORP IRVINE CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO AN UNDERWRITTEN PUBLIC OFFERING OF AS MANY AS 125 MILLION COMMON SHARES UNICARE SAID ONE MILLION SHARES ARE BEING OFFERED BY THE COMPANY AND THE REST BY CERTAIN HOLDERS THE UNDERWRITERS HAVE BEEN GRANTED AN OPTION TO BUY AS MANY AS 187500 ADDITIONAL SHARES FROM THE HOLDERS TO COVER OVERALLOTMENTS 9308200127 930820 WHO'S NEWS NORTHGATE EXPLORATION LTD NORTHGATE EXPLORATION LTD TORONTO PATRICK DOWNEY 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE GOLD MINING CONCERN SUCCEEDING JOHN KACHMAR 56 WHO WILL RETAIN HIS ROLES AS PRESIDENT AND CHIEF EXECUTIVE OF FORMER NORTHGATE SUBSIDIARY CAMPBELL RESOURCES INC MR DOWNEY PREVIOUSLY SERVED AS CHIEF FINANCIAL OFFICER OF BOTH NORTHGATE AND CAMPBELL NORTHGATE SOLD ITS 35 STAKE IN CAMPBELL TO THE PUBLIC EARLIER THIS MONTH 9308200126 930820 ECOGEN ENTERS NEMATODE PACTS LANGHORNE PA ECOGEN INC SAID IT ENTERED INTO A RESEARCH AND DEVELOPMENT AGREEMENT WITH CHRISTIAN ALBRECHTS UNIVERSITY IN GERMANY AND A DISTRIBUTION AGREEMENT WITH W NEUDORFF GMBH COVERING NORTH AND CENTRAL EUROPE CONCERNING NEMATODE PRODUCTS NEMATODES ARE MICROSCOPIC ROUNDWORMS THAT ATTACK LARVAE IN THE SOIL WHERE 90 OF INSECTS DWELL AT SOME STAGE OF LIFE ECOGEN AN AGRICULTURAL BIOTECHNOLOGY COMPANY SAID NEUDORFF A MAKER OF ORGANIC GARDENING PRODUCTS WOULD DISTRIBUTE NEMATODE INSECTICIDES DEVELOPED BY CHRISTIAN ALBRECHTS AND OTHER PROJECTS SUPPORTED BY ECOGEN UNDER THE TERMS OF THE THREEYEAR PACT THE UNIVERSITY IN KIEL WOULD ALSO BUILD ON TECHNOLOGY IT HAS ALREADY DEVELOPED FOR NEUDORFF ECOGEN MARKETS NEMATODE PRODUCTS IN THE US AUSTRALIA AND SEVERAL EUROPEAN COUNTRIES 9308200125 930820 HEARD ON THE STREET ANALYSTS BELIEVE TIMING IS RIGHT FOR LIMITED TO PUSH AHEAD WITH RESTRUCTURING OF STORES BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL IS LIMITED ABOUT TO CHARGE AHEAD WITH A COSTCUTTING OVERHAUL OF SOME LAGGARD BUSINESSES THAT'S THE VIEW OF A GROWING GROUP OF ANALYSTS AND INVESTORS SOME OF WHOM ARE BUYING THE APPAREL RETAILER'S STOCK IN HOPES THE RESTRUCTURING TALK IS ON THE MARK EVEN WITHOUT A MAKEOVER SOME SAY THE STOCK IS CHEAP BUT A RESTRUCTURING COULD SIGNAL A TURNING POINT FOR LIMITED WHOSE SHARES HAVE BEEN IN THE DUMPS FOR THREE YEARS BASICALLY EVERYONE HAS HATED THE STOCK BUT FROM A PORTFOLIO MANAGER'S PERSPECTIVE IT'S READY FOR A BOUNCE SAYS DANIEL BECKER A PORTFOLIO MANAGER WITH WADDELL & REED IN SHAWNEE MISSION KAN LIMITED CLOSED YESTERDAY AT 22 3/4 UP 1/8 AND ABOUT 18 TIMES REPORTED EARNINGS TALK OF A LIMITED RESTRUCTURING ISN'T NEW AS THE COLUMBUS OHIO COMPANY DISAPPOINTED ANALYSTS QUARTER AFTER QUARTER INVESTORS WONDERED WHEN IT MIGHT CLOSE SOME OF ITS WEAKER STORES PARTICULARLY IN ITS CORE LIMITED DIVISION AND ITS LERNER OPERATIONS NOW HOWEVER SOME ANALYSTS SENSE A GOOD OPPORTUNITY TO CLOSE WEAK STORES AND PRUNE OPERATIONS WITHOUT HAVING TO TAKE A BIG CHARGE AGAINST EARNINGS HERE'S THEIR THINKING LIMITED ANNOUNCED EARLY IN JULY THAT IT WAS SELLING TO AN AFFILIATE OF THE LOS ANGELES BUYOUT FIRM FREEMAN SPOGLI A 60 STAKE IN ITS BRYLANE CATALOG DIVISION WHICH CONSISTS OF THE LERNER DIRECT LANE BRYANT DIRECT AND ROAMAN'S CATALOG OPERATIONS LIMITED DIDN'T DISCLOSE THE SIZE OF ITS GAIN ON THE TRANSACTION BUT ANALYSTS NOW EXPECT A PRETAX GAIN OF 200 MILLION TO 260 MILLION FOR THE COMPANY SOME ANALYSTS NOW THINK LIMITED WILL USE THAT GAIN TO OFFSET RESTRUCTURING COSTS FURMAN SELZ THIS WEEK ADDED LIMITED TO ITS RECOMMENDED LIST BASED ON FURMAN ANALYST DANA COHEN'S BELIEF THAT THE COMPANY WILL RESTRUCTURE NOT ONLY WOULD LIMITED THUS AVOID A 90 MILLION TO 100 MILLION ESTIMATED TAX LIABILITY ON THE GAIN FROM THE SALE BUT SHE SAYS A RESTRUCTURING CHARGE WOULD ALLOW THE COMPANY TO CLOSE POORLY PERFORMING STORES AND CUT COSTS A LIMITED SPOKESMAN DECLINED TO COMMENT ON THE POSSIBILITY OF A RESTRUCTURING BUT OTHER ANALYSTS AGREE THAT THE LIMITED IS ON THE VERGE OF TURNING OVER A NEW LEAF THE BRYLANE TRANSACTION IS JUST THE TIP OF THE ICEBERG SAYS JENNIFER BLACK GROVES OF PORTLAND ORE BROKERAGE FIRM BLACK & CO SHE EXPECTS A SERIES OF EVENTS THAT WILL LEAD TO A SIGNIFICANT RESTRUCTURING SHE APPLAUDS THE COMPANY'S RECENT MANAGEMENT CHANGES INCLUDING MICHAEL WEISS'S PROMOTION TO VICE CHAIRMAN MR WEISS OVERSAW THE LIMITED'S HUGELY SUCCESSFUL EXPRESS DIVISION WHICH CATERS TO YOUNGER WOMEN SHE BELIEVES THE COMPANY HAS A NEW MORE DYNAMIC PHILOSOPHY THAT WILL LEAD IT TO BITE THE BULLET AND CLOSE AS MANY AS 75 TO 100 POORLY PERFORMING LERNER STORES AND A NUMBER OF LIMITED STORES AS WELL THE COMPANY HAS ROUGHLY 915 LERNER STORES AND 759 LIMITED STORES SUCH A MOVE SHE SAYS WOULD BOOST PROFIT MARGINS AT THE COMPANY'S BETTER PERFORMING BUSINESSES SUCH AS BATH & BODY WORKS ABERCROMBIE & FITCH CACIQUE AND STRUCTURE THE ICING ON THE CAKE FOR INVESTORS SHE BELIEVES COULD BE A STOCK REPURCHASE PLAN BECAUSE LIMITED'S BUSINESSES KICK OFF LARGE AMOUNTS OF CASH AND ITS DEBTTOEQUITY RATIO HAS FALLEN TO 24 AT THE END OF 1992 FROM 38 IN 1991 BUILT INTO THE STOCK ARE EXPECTATIONS OF ABOUT A 9 EARNINGS GROWTH RATE SAYS AN OFFICIAL OF LORD ABBETT BUT HE BELIEVES EARNINGS COULD RISE ABOUT 10 THIS YEAR AND THE PROFIT GROWTH RATE COULD EVENTUALLY ACCELERATE IT'S IN A RANGE WHERE VALUE PLAYERS WILL BE TAKING A CLOSE LOOK HE SAYS THE EARNINGS GROWTH RATE WAS 425 FOR THE PAST 10 YEARS AND 20 ANNUALLY DURING A FIVEYEAR SPAN HOW DID THE COMPANY WIND UP IN ITS CURRENT FIX AFTER ALL THIS WAS THE HOT GROWTH COMPANY IN THE 1980S WHOSE CHAIRMAN LESLIE WEXNER DEVELOPED A PENCHANT FOR REAL ESTATE THAT LEFT THE COMPANY WITH VAST AMOUNTS OF MALL SPACE AND A MADISON AVENUE STORE IN ITS HEYDAY THE COMPANY COULD DO NO WRONG SPAWNING ONE NEW SUCCESSFUL RETAIL IDEA AFTER ANOTHER THEN THE COMPANY STUMBLED AS ITS LERNER AND LIMITED DIVISIONS BEGAN CANNIBALIZING EACH OTHERS' CUSTOMERS AND RAN INTO TROUBLE WITH SOME POORQUALITY MERCHANDISE LIMITED MAY HAVE RESOLVED THOSE PROBLEMS SAYS MR BECKER OF WADDELL & REED THEY HAVE BETTER COLORS NOW AND THEIR FABRICS ARE BETTER HE SAYS MOREOVER IN THE INVESTMENT REALM THERE AREN'T A LOT OF PLACES TO PUT YOUR MONEY NOW AND THIS IS ONE STOCK THAT DIDN'T SHARE IN THE STOCK MARKET RALLY OF RECENT YEARS 9308200124 930820 WHO'S NEWS AH BELO CORP AH BELO CORP DALLAS ROBERT W DECHERD 42 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS NEWSPAPER AND BROADCASTING CONCERN WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT MR DECHERD WILL SUCCEED JAMES P SHEEHAN 51 PRESIDENT AND CHIEF OPERATING OFFICER WHO WILL RETIRE AT THE END OF THE YEAR BUT CONTINUE TO WORK AS A CONSULTANT TO THE COMPANY THE POSITION OF CHIEF OPERATING OFFICER HAS BEEN ELIMINATED THE COMPANY SAID 9308200123 930820 ABREAST OF THE MARKET STOCK INDEXES AGAIN HIT RECORDS AIDED BY BONDS PROGRAM TRADING BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK INDEXES INCHED UP TO ANOTHER SET OF ALLTIME HIGHS BUOYED BY A RALLY IN THE BOND MARKET AND A LATE BURST OF PROGRAM TRADING THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 727 OR 020 TO 361213 ITS THIRD STRAIGHT RECORD AND THE FIFTH IN THE PAST NINE SESSIONS THE STANDARD & POOR'S 500 STOCK INDEX MEANWHILE MOVED THROUGH A HIGH THAT HAD STOOD SINCE MARCH ADVANCING BIG BOARD ISSUES LED LOSERS BY A SLIM 983TO979 MARGIN NEW YORK STOCK EXCHANGE VOLUME WAS ACTIVE AT 2899 MILLION SHARES BUT LOWER THAN WEDNESDAY'S TORRID 3092 MILLION THE S&P 500 ROSE 039 OR 009 TO 45643 JUST ABOVE ITS OLD RECORD OF 45633 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 036 OR 014 TO 25323 AND THE DOW JONES EQUITY MARKET INDEX ADDED 029 OR 007 TO 43358 BOTH AT HIGHS FOR A SECOND CONSECUTIVE DAY THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX ROSE 133 OR 030 TO 44796 ANOTHER NEW HIGH BUT IT TOOK A ROUND OF FUTURESRELATED PROGRAM TRADING TO LEAVE THE INDEXES AT THESE LEVELS STOCK PRICES HAD BEGUN TO FADE IN LATE TRADING BEFORE THE PROGRAMS TIED TO INDEX ARBITRAGE HIT IN THE FINAL MINUTES INDEX ARBITRAGE INVOLVES THE SALE OF STOCK INDEX FUTURES AND THE SIMULTANEOUS PURCHASE OF STOCK DONE TO TAKE ADVANTAGE OF MOMENTARY DISCREPANCIES IN THE PRICES OF THE TWO INVESTMENTS STRENGTH IN THE BOND MARKET HELPED TO PROP UP STOCKS ALL SESSION THE 30YEAR TREASURY ISSUE JUMPED NEARLY 3/4 POINT PUSHING ITS YIELD TO 620 ANOTHER 16YEAR LOW THE YIELD HAS MOVED STEADILY LOWER FOR WEEKS INVESTORS MANAGED TO SHRUG OFF THE DOWNBEAT ECONOMIC NEWS THAT HELPED INSPIRE BONDS THE COMMERCE DEPARTMENT SAID THE US MERCHANDISE TRADE DEFICIT GREW TO 1206 BILLION IN JUNE THE WIDEST IT HAS BEEN SINCE FEBRUARY 1988 ECONOMISTS SPECULATED THAT THE GAPING DEFICIT WILL FORCE A SHARP DOWNWARD REVISION IN SECONDQUARTER GROSS DOMESTIC PRODUCT JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG SAID GDP GROWTH MIGHT BE RESTATED TO AS LOW AS 05 FROM THE 16 ORIGINALLY REPORTED JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ SAID YESTERDAY WAS A BREATHCATCHING DAY AFTER THE RECENT RUN HIGHER CONFLICTING OPINIONS OVER WHICH DIRECTION STOCKS WILL HEAD NEXT LEFT INVESTORS GUESSING OVER WHAT THEIR NEXT MOVE SHOULD BE IT'S BECOME AN INCREASINGLY CONFUSING ENVIRONMENT BUT THE BOTTOM LINE IS THAT WITH BOND YIELDS DOING WHAT THEY ARE DOING STOCKS ARE GOING TO CONTINUE TO HAVE AN UPWARD BIAS MR MCALINDEN SAID SHARES OF CONSUMER PRODUCTS COMPANIES WERE AMONG THE STRONGEST FOR THE THIRD STRAIGHT SESSION MERCK TOPPED THE BIG BOARD MOSTACTIVE LIST AGAIN RISING 5/8 TO 33 1/8 ON 76 MILLION SHARES THE STOCK BEGAN THE WEEK AT 28 3/4 PHILIP MORRIS ADDED 1/2 TO 50 5/8 PEPSICO GAINED 1 1/4 TO 40 1/8 COCACOLA CO 1 TO 43 3/4 SARA LEE 7/8 TO 26 1/8 AND JOHNSON & JOHNSON 3/8 TO 40 3/8 AUTO STOCKS AND OTHER CYLICALS WERE FIRM AFTER BEING HAMMERED THE PRIOR TWO DAYS BY INVESTORS SHIFTING FUNDS TO THE CONSUMER ISSUES GENERAL MOTORS ROSE 1 1/8 TO 45 1/2 AND FORD GAINED 5/8 TO 50 7/8 RAILROAD ISSUES SURGED CARRYING THE DOW JONES TRANSPORTATION AVERAGE UP 1453 OR 089 TO 165463 CSX JUMPED 1 TO 76 1/2 NORFOLK SOUTHERN RALLIED 2 1/8 TO 69 5/8 AFTER IT OFFERED EARLY RETIREMENT TO 13 OF ITS NONUNION STAFF MEDTRONIC JUMPED 2 1/2 TO 66 3/8 AFTER THE COMPANY WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS NEW SPIRIT BALLOON CATHETER A DEVICE USED TO OPEN PARTIALLY BLOCKED CORONARY ARTERIES RAYMOND JAMES & ASSOCIATES RAISED A RATING ON THE COMPANY'S STOCK TO BUY TEXAS INSTRUMENTS INCREASED 5/8 TO 81 1/8 THE COMPANY DISCLOSED PLANS TO BUILD A MICROCHIP PRODUCTION PLANT AT A COST OF BETWEEN 750 MILLION AND 1 BILLION IT SAID GROWING DEMAND FOR SEMICONDUCTORS TRIGGERED THE MOVE AMERICAN TELEPHONE & TELEGRAPH SKIDDED 1 3/8 TO 58 1/4 THE WALL STREET JOURNAL REPORTED THAT THE COMMUNICATIONS CONCERN FACES WELLFINANCED COMPETITION AND TECHNICAL HURDLES AS IT JUMPS INTO THE MOBILE TELEPHONE SERVICE BUSINESS WITH MCCAW CELLULAR COMMUNICATIONS SHARES OF MCCAW WHICH AT&T HAS AGREED TO BUY SLIPPED 1 1/4 TO 53 1/2 IN OVERTHECOUNTER TRADING CLAYTON HOMES SLID 2 5/8 TO 25 1/4 THE COMPANY ALLEGED THAT THE FORMER CONTROLLER FOR ITS RETAIL GROUP EMBEZZLED A SIZABLE AMOUNT OF MONEY FROM JAMES L CLAYTON ITS FOUNDER AND CHAIRMAN THE STOCK RECOVERED FROM AN INITIAL DIVE AFTER SOME WALL STREET ANALYSTS ACTUALLY RECOMMENDED INVESTORS BUY THE STOCK AMONG THEM WAS MONTGOMERY SECURITIES ANALYST JAMES WILSON WHO UPGRADED HIS RATING ON THE STOCK TO A BUY FROM HOLD SAYING THAT DESPITE THE NEGATIVE DEVELOPMENTS THERE AREN'T ANY FUNDAMENTAL CHANGES AT THE COMPANY FIRST USA SOARED 2 1/8 TO 53 1/4 AFTER ALEX BROWN & SONS INCREASED ITS FORECAST FOR THE CREDIT CARD ISSUER'S EARNINGS GENEVA STEEL INCREASED 1 TO 11 AFTER MERRILL LYNCH ANALYST JORDAN ESTRA MADE POSITIVE COMMENTS HE REPEATED A LONGTERM BUY RATING SAYING THAT RECENT SELLING IN THE COMPANY'S STOCK WAS OVERDONE HE SAID THE COMPANY'S ORDERS ARE SOLID AND NOTED STEEL PRICES ARE STRONG AUTHENTIC FITNESS CLIMBED 3/4 TO 22 1/2 THE SWIMWEAR COMPANY REPORTED NET INCOME OF 29 CENTS A SHARE FOR THE FOURTH QUARTER ENDED LAST MONTH REVERSING A YEARAGO LOSS OF 121 THE YEARAGO RESULTS INCLUDED A ONETIME CHARGE SONY SLIPPED 5/8 TO 42 1/4 THE JAPANESE ELECTRONICS COMPANY SAID ITS PRETAX PROFIT ROSE 31 IN THE FIRST QUARTER ENDED JUNE 30 BUT IT MADE CAUTIOUS COMMENTS ABOUT PROFIT AND SALES FOR THE REST OF THE YEAR SNYDER OIL ROSE 1 3/8 TO 21 3/8 THE OIL AND GAS CONCERN SAID ITS RUSSIAN JOINT VENTURE RECEIVED APPROVAL FROM RUSSIAN AUTHORITIES THAT WILL ALLOW IT TO PURSUE OPERATIONS IT EXPECTS TO BEGIN DRILLING AND PRODUCTION WITHIN SIX MONTHS CELUTEL SURGED 2 1/2 TO 7 AFTER IT SIGNED A LETTER OF INTENT TO BE ACQUIRED BY CENTURY TELEPHONE ENTERPRISES FOR 105 MILLION IN CASH AND STOCK THE PURCHASE PRICE INCLUDES THE ASSUMPTION OF 40 MILLION IN DEBT HOLDERS OF CELUTEL WILL RECEIVE ABOUT 8 A SHARE CENTURY FELL 1/2 TO 29 3/8 AMERICAN CYANAMID WAS AMONG THE STRONGEST DRUG ISSUES JUMPING 2 7/8 TO 51 5/8 CJ LAWRENCE ANALYST ROBERT REITZES WAS SAID TO HAVE RAISED HIS RATING ON THE COMPANY'S STOCK TO BUY FROM HOLD VISX ADVANCED 2 TO 12 7/8 SMITH BARNEY SHEARSON INITIATED COVERAGE OF THE MEDICAL LASER DEVELOPER WITH A BUY RATING 9308200122 930820 PEPPERAND SALT WHERE'S THE BEEF TURNS OUT TO BE MIGNON FILLY ON A PHOTO OPPORTUNITY FORGETFULNESS BRAIN RUST 9308200121 930820 THE NEW TAX LAW SEARCHING FOR SHELTER YOUR MONEY MATTERS WEEKEND REPORT ANNUITIES AND INSURANCE GET BOOST BUT BUYERS SHOULD MOVE CAREFULLY BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL THE OFFICIAL NAME OF THE NEW TAX LAW IS THE OMNIBUS BUDGET RECONCILIATION ACT OF 1993 BUT IT MIGHT WELL HAVE BEEN CALLED THE ANNUITY AND INSURANCE SELLERS ASSISTANCE ACT WITH MANY UPPERINCOME INDIVIDUALS AND CERTAIN RETIREES FACING SUBSTANTIAL TAX INCREASES THE NEW LAW HANDS POWERFUL MARKETING AMMUNITION TO PEOPLE WHO SELL TAXFAVORED INSURANCE PRODUCTS IF MY BUSINESS DOESN'T JUMP 35 THIS YEAR I'M CRAZY DECLARES JEROME ALEXANDER A BIG INSURANCE SELLER IN NORTHBROOK ILL FOR AFFLUENT INDIVIDUALS THE BOOST IN THE TOP STATED TAX RATES TO 36 AND EVEN 396 FOR THOSE WITH TAXABLE INCOMES ABOVE 250000 MAKES IT MORE VALUABLE THAN IT WAS UNDER THE OLD 31 TOP RATE TO DELAY PAYING INCOME TAX THE ABILITY TO DEFER TAXES IS ONE OF THE MOST ATTRACTIVE FEATURES OF BOTH ANNUITIES WHICH ARE RETIREMENT SAVINGS PLANS AND CASHVALUE LIFE INSURANCE POLICIES WHICH COMBINE A DEATH BENEFIT WITH A SAVINGS COMPONENT MOREOVER EARNINGS ACCUMULATING WITHIN ANNUITIES AND INSURANCE POLICIES AREN'T COUNTED AS INCOME IN FIGURING THE TAX ON SOCIAL SECURITY BENEFITS A BIG CONCERN FOR SOME RETIREES WHO NEXT YEAR COULD SEE AS MUCH AS 85 OF THEIR BENEFITS TAXED UP FROM 50 THIS YEAR BUT INDIVIDUALS NEED TO CONSIDER THEIR OPTIONS CAREFULLY BEFORE TRYING TO DROWN THEIR TAX SORROWS IN ANNUITY OR INSURANCE PURCHASES INDEED ONE PARTICULAR TYPE OF ANNUITY THE VARIABLE VARIETY MAY ACTUALLY BE SOMEWHAT LESS VALUABLE FOR SOME AFFLUENT INVESTORS UNDER THE NEW TAX LAW I WOULDN'T OVERREACT ADVISES WILLIAM G BRENNAN A WASHINGTON PARTNER AND FINANCIALPLANNING SPECIALIST WITH ACCOUNTANTS ERNST & YOUNG THERE ARE A LOT OF OTHER FACTORS THAT GO INTO CONSIDERING SUCH VEHICLES INSURANCE SPECIALISTS SAY IT RARELY MAKES SENSE TO BUY LIFE INSURANCE UNLESS YOU WANT TO PROVIDE A DEATH BENEFIT FOR YOUR HEIRS THEY ALSO NOTE THAT WHILE ANNUITIES AND CASHVALUE LIFE INSURANCE MAKE GREAT SENSE IN SOME CIRCUMSTANCES BOTH PRODUCTS TEND TO CARRY STEEP FEES AND REQUIRE PEOPLE TO TIE UP THEIR MONEY FOR MANY YEARS AND SOME STRATEGIES INVOLVING BIG ANNUITY OR INSURANCE PURCHASES MAY DO MORE TO ENRICH THE SELLERS THAN THE BUYERS HERE'S A LOOK AT FOUR TAXRELATED INSURANCE STRATEGIES INVESTORS ARE LIKELY TO HEAR ABOUT IN COMING WEEKS AND SOME OF THE IMPORTANT THINGS TO CONSIDER BEFORE WRITING OUT A CHECK FIXED ANNUITIES FOR RETIREMENT SAVINGS WITH THE NEW HIGHER MARGINAL TAX RATES THE VALUE OF NOT PAYING CURRENT TAX IS GREATER SAYS GORDON C BORONOW PRESIDENT OF AMERICAN SKANDIA LIFE ASSURANCE CORP IN SHELTON CONN THAT INCREASES THE APPEAL OF THE FIXED ANNUITY AN INTERESTEARNING SAVINGS VEHICLE THAT HAS BEEN PARTICULARLY POPULAR WITH BUYERS IN THEIR 50S THE INTEREST RATES ARE FIXED FOR A YEAR OR MORE AT A TIME AND OFTEN TOP THE RATES ON BANK CERTIFICATES OF DEPOSIT THE AVERAGE INITIAL RATE ON NEW ANNUITIES WAS AROUND 55 IN A RECENT SURVEY BY CONSULTANTS TOWERS PERRIN COMPARED WITH AVERAGE RATES UNDER 5 ON BANK CDS IMPORTANTLY THE INTEREST ANNUITIES EARN ISN'T TAXED UNTIL MONEY IS WITHDRAWN BUT FIXED ANNUITIES ALSO HAVE DRAWBACKS PEOPLE WHO DROP THEM IN THE EARLY YEARS TYPICALLY FACE SURRENDER CHARGES WHICH OFTEN START AT 7 AND PHASE OUT OVER SEVEN YEARS THERE IS ALSO THE RISK THAT AN INSURER WILL LOWER ITS RATE TO AN UNCOMPETITIVE LEVEL WHILE THE INVESTOR IS STILL EFFECTIVELY LOCKED IN BY THE SURRENDER CHARGES FOR YOUNGER INVESTORS THERE IS ANOTHER IMPORTANT CONSIDERATION UNDER THE TAX RULES EARNINGS WITHDRAWN BEFORE AGE 59 1/2 ARE SUBJECT TO A 10 PENALTY AS WELL AS ORDINARY INCOME TAX VARIABLE ANNUITIES FOR TAXFAVORED INVESTING VARIABLE CONTRACTS HAVE THE SAME TAX BENEFITS AS FIXED ANNUITIES BUT INVESTORS CAN SHIFT THEIR MONEY AMONG SEVERAL SUBACCOUNTS THAT ARE ESSENTIALLY STOCK AND BOND MUTUAL FUNDS THESE INVESTMENTS CAN BE A GOOD PLACE TO PUT MONEY FOR PEOPLE WHO WILL WITHDRAW IT IN INCREMENTS OVER THEIR RETIREMENT YEARS SAYS NEW YORK INSURANCE ADVISER GLENN S DAILY BUT FEES ARE OFTEN STEEP OFFSETTING PART OF THE TAX ADVANTAGE PEOPLE INVESTING FOR LESS THAN 15 YEARS WILL TYPICALLY DO BETTER BUYING FUNDS DIRECTLY RATHER THAN BUYING ANNUITIES MR DAILY SAYS THESE DAYS AFFLUENT INVESTORS SHOULD BE WARY OF SELLERS WHO BLITHELY CLAIM THAT HIGHER TAX RATES MAKE VARIABLE ANNUITIES A BETTER DEAL THAN BEFORE IN FACT THE ANNUITIES BECOME SLIGHTLY LESS ATTRACTIVE THAN THEY HAD BEEN RELATIVE TO MUTUAL FUNDS FOR HIGH EARNERS WHOSE TAX RATE WILL BE 36 THIS YEAR AND 36 IN RETIREMENT MR DAILY FIGURES THAT'S BECAUSE A 36BRACKET TAXPAYER WHO BUYS A STOCK MUTUAL FUND DIRECTLY WILL STILL PAY TAX ON MOST OF THE FUND'S RETURN AT THE 28 CAPITALGAINS RATE BUT EARNINGS ACCUMULATED IN A VARIABLE ANNUITY EVEN FROM STOCKMARKET CAPITAL GAINS WILL ULTIMATELY BE TAXED AT THE ORDINARYINCOME RATE VARIABLE ANNUITIES DO BECOME SLIGHTLY MORE ATTRACTIVE THAN BEFORE MR DAILY SAYS IF ONE ASSUMES THE TAXPAYER IS IN THE 36 BRACKET NOW BUT WILL BE IN A 31 BRACKET WHEN MONEY IS WITHDRAWN ANNUITIES FOR SOCIAL SECURITY RECIPIENTS IF YOU ARE RETIRED AND RECEIVING SOCIAL SECURITY YOU MAY SOON HEAR FROM AN INSURANCE AGENT OR BROKER SUGGESTING YOU TRANSFER SOME INVESTMENT DOLLARS INTO ANNUITIES THE SALES PITCH IS THIS BEGINNING IN 1994 COUPLES WITH INCOMES OVER 44000 INCLUDING HALF THEIR SOCIAL SECURITY BENEFITS COULD SEE UP TO 85 OF THE SOCIAL SECURITY BENEFITS TAXED EVEN TAXFREE INCOME FROM MUNICIPAL BONDS IS INCLUDED IN THE INCOME TEST BUT EARNINGS ACCUMULATING INSIDE AN ANNUITY AREN'T COUNTED THAT'S ALL TRUE BUT TAKE A HARD LOOK AT THE NUMBERS THE POTENTIAL TAX SAVINGS MAY BE TOO SMALL TO MERIT THE BIG PORTFOLIO SWITCH THE STRATEGY MAY REQUIRE FOR INSTANCE A SPECIAL REPORT FROM AG EDWARDS & SONS INC INCLUDES AN EXAMPLE IN WHICH A RETIRED COUPLE SHIFTS ABOUT 200000 FROM MUNICIPAL BONDS INTO ANNUITIES THE TAX SAVINGS ACCORDING TO THE ST LOUISBASED SECURITIES FIRM 375 A YEAR BETSY DOW A TAX SPECIALIST AT AG EDWARDS SAYS SUCH A SWITCH ABSOLUTELY CAN MAKE SENSE FOR RETIREES WHO AREN'T LIVING ON THE INCOME FROM THE MUNICIPAL BONDS I'D TAKE THE 375 SHE SAYS BUT OTHER ADVISERS DISAGREE IN PART BECAUSE OF THE TRANSACTION COSTS THAT PROBABLY WOULD BE INVOLVED IT SEEMS LUDICROUS TO SHIFT 200000 FOR SUCH A SMALL SAVINGS SAYS PETER C KATT AN INSURANCE ADVISER IN WEST BLOOMFIELD MICH THE ANNUITY SELLER COULD REAP BIG COMMISSIONS HE NOTES BUT FROM THE RETIREES' PERSPECTIVE HE SAYS IT STRIKES ME AS A SOLUTION LOOKING FOR A PROBLEM INSURANCE TO PAY ESTATE TAX OR PASS WEALTH MANY AFFLUENT RETIREES HAVE BEEN BUYING BIG INSURANCE POLICIES TO PAY ESTATE TAX OR PASS MONEY TO CHILDREN THE NEW LAW STRENGTHENS THE ARGUMENT FOR BOTH TYPES OF PURCHASES THE TOP FEDERAL ESTATETAX RATE IS RESTORED TO 55 RETROACTIVE TO JAN 1 NEGATING A PREVIOUSLY SCHEDULED DROP TO 50 THE LEVY APPLIES TO SUMS ABOVE 600000 THAT ARE LEFT TO PEOPLE OTHER THAN A SPOUSE AGENTS WILL CERTAINLY BE POINTING OUT THE USEFULNESS OF INSURANCE IN PROVIDING READY CASH TO FAMILIES WHOSE WEALTH IS TIED UP IN REAL ESTATE OR A FAMILY BUSINESS MORE SIGNIFICANTLY HIGHER INCOMETAX RATES MAKE CASHVALUE POLICIES SUCH AS WHOLE LIFE AND UNIVERSAL LIFE AN EVEN BETTER WAY FOR SOME AFFLUENT RETIREES TO PASS WEALTH ALONG HERE'S WHY WHEN PEOPLE PAY PREMIUMS PART OF THE MONEY GOES INTO TAXSHELTERED SAVINGS OR INVESTMENTS THE EARNINGS AREN'T TAXED UNTIL A POLICY IS SURRENDERED AND THEY ESCAPE INCOME TAX ALTOGETHER IF A POLICY IS HELD UNTIL DEATH THAT TAXFREE GROWTH WITHIN AN INSURANCE POLICY CAN PROVIDE MORE DOLLARS FOR ONE'S HEIRS THAN IF THE MONEY WAS PUT IN OTHER INVESTMENTS HIGHER TAX RATES OBVIOUSLY MAKE INSURANCE AN EVEN BETTER SHELTER IT'S A GREAT VEHICLE FOR PEOPLE WHO DESIRE TO TRANSFER WEALTH TO CHILDREN AFFIRMS MR KATT THE MICHIGAN INSURANCE ADVISER BUT WATCH OUT FOR PITFALLS POLICIES SHOULD GENERALLY BE BOUGHT THROUGH LIFE INSURANCE TRUSTS TO AVOID HAVING THE DEATH BENEFIT COUNTED AS PART OF THE TAXABLE ESTATE IF THE AGENT DOESN'T PICK AN APPROPRIATE POLICY FOR WEALTH TRANSFER SAYS MR KATT THE RESULT CAN BE A LACKLUSTER INVESTMENT MR DAILY THE NEW YORK INSURANCE ADVISER SAYS IT'S MORE IMPORTANT THAN EVER TO SEEK LOWCOMMISSION POLICIES WITH TODAY'S LOW INTEREST RATES HE SAYS HIGH COMMISSIONS CAN BE A REAL DRAG ON A POLICY'S INVESTMENT PERFORMANCE 9308200120 930820 OTC FOCUS LEVEL ONE SHARES SOAR 68 ON DEBUT AS NASDAQ FALLS AFTER 3 RECORD DAYS BY SARA CALIAN AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SHARES OF LEVEL ONE COMMUNICATIONS SOARED 68 ON THEIR DEBUT EVEN AS THE OVERTHECOUNTER MARKET FELL THE NASDAQ COMPOSITE INDEX DROPPED 435 OR 06 TO 73048 TAKING A REST AFTER THREE CONSECUTIVE RECORD CLOSINGS DECLINING STOCKS OUTNUMBERED ADVANCERS 1433 TO 1345 ON TOTAL VOLUME OF 2892 MILLION SHARES DOWN FROM WEDNESDAY'S 3318 MILLION SHARES LEVEL ONE SURGED 11 1/2 TO 28 1/2 REACHING AS HIGH AS 29 3/4 DURING TRADING THIS COMPANY IS IN ONE OF THE HOTTEST AREAS MIXEDSIGNAL COMMUNICATIONS SAID WILLIAM SMITH AN ANALYST WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN ALMOST EVERYBODY WANTED TO GET INTO THIS DEAL LEVEL ONE BASICALLY IS A SEMICONDUCTOR COMPANY FOR COMMUNICATIONS ITS PRODUCT IS VERY ATTRACTIVE TO TELEPHONE COMPANIES HELPING THEM INCREASE THE AMOUNT OF INFORMATION THAT CAN BE TRANSFERRED OVER THEIR WIRES THE COMPANY MAKES MIXEDSIGNAL APPLICATION CIRCUIT PRODUCTS WHICH ALLOW THE TRANSFER OF DATA BETWEEN COMPUTER DIGITAL NETWORKING AND TELEPHONE COMMUNICATIONS SYSTEMS LEVEL ONE IS AT THE CENTER OF RAPIDLY GROWING AREAS LIKE CLIENT/SERVER COMPUTING AND VIDEOCONFERENCING IT'S A VERY FOCUSED COMPANY AND IT IS IN THE MIDDLE OF ONE OF THE FASTERGROWING AREAS IN TECHNOLOGY MR SMITH SAID LEVEL ONE OFFERED 22 MILLION SHARES AT 17 A SHARE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS THE FOLSOM CALIF COMPANY HAD PLANNED TO OFFER TWO MILLION SHARES BETWEEN 13 AND 15 LAST YEAR THE COMPANY EARNED 27 CENTS A SHARE AND WALL STREET ANALYSTS' ESTIMATES FOR THIS YEAR RANGE FROM 37 CENTS A SHARE TO 51 CENTS ELSEWHERE INVESTORS TOOK PROFITS IN TECHNOLOGY AND COMMUNICATIONS ISSUES THOSE SECTORS HAVE PROPPED UP A STRONG RUN THAT HAS DRIVEN THE NASDAQ COMPOSITE INDEX TO REPEATED HIGHS IN THE PAST TWO WEEKS SOME OF THESE STOCKS HAD GOTTEN TO PRETTY LOFTY LEVELS SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP IT GOT TO THE POINT WHERE SOME PEOPLE WANTED TO TAKE CASH OFF THE TABLE TECHNOLOGY STOCKS DECLINED SUPERMAC TECHNOLOGY FOR EXAMPLE FELL 3 5/8 TO 12 VOLPE WELTY SAID THE SUNNYVALE CALIF SUPPLIER OF HIGHPERFORMANCE DESKTOP COLOR GRAPHICS SYSTEMS MIGHT FACE INCREASED COMPETITION FOR ITS COMPUTER MONITORS AS WELL AS FOR ITS POPULAR DIGITAL FILM SYSTEM MICROSOFT SLIPPED 3 TO 74 1/4 CHAIRMAN AND CHIEF EXECUTIVE OFFICER BILL GATES REITERATED HIS EXPECTATION THAT THE REDMOND WASH COMPANY'S PROFIT MARGINS WOULD SLIDE THIS YEAR ALSO ADOBE SYSTEMS GAVE BACK 2 1/8 TO 23 5/8 APPLIED MATERIALS WAS OFF 1 1/4 AT 72 5/8 AND CISCO SYSTEMS RETREATED 2 TO 54 3/4 BUT MAXTOR OF SAN JOSE CALIF BUCKED THE TREND RISING 1 3/8 TO 6 3/4 THE DISKDRIVE MAKER SAID IT AGREED TO CREATE A STRATEGIC PARTNERSHIP WITH HYUNDAI ELECTRONICS INDUSTRIES CO OF SEOUL SOUTH KOREA UPON COMPLETION OF THE DEAL HYUNDAI WOULD INVEST 150 MILLION IN MAXTOR AND RECEIVE ABOUT 194 MILLION MAXTOR COMMON SHARES IN RETURN COMMUNICATION STOCKS ENDED THE CLIMB THAT STARTED MONDAY ON NEWS OF MCCAW CELLULAR'S 126BILLION MERGER WITH BIG BOARDTRADED AMERICAN TELEPHONE & TELEGRAPH CO ERICSSON OF SWEDEN DROPPED 1 1/4 TO 46 7/8 DESPITE REPORTING THAT PRETAX PROFIT FOR THE FIRST HALF MORE THAN DOUBLED TO 129 BILLION KRONOR 1638 MILLION FROM 56 MILLION KRONOR A YEAR EARLIER MCCAW COMCAST AND VANGUARD CELLULAR ALL FELL AT LEAST A POINT BUT MCI COMMUNICATIONS THE DAY'S MOST ACTIVE ISSUE ADDED 1/4 TO 27 5/8 ON VOLUME OF ABOUT 61 MILLION SHARES AVERAGE DAILY VOLUME IS ABOUT 34 MILLION SHARES IN THE MEDICALRELATED GROUP SUMMIT TECHNOLOGY RALLIED 2 3/4 TO 23 1/4 SMITH BARNEY SHEARSON INC INITIATED COVERAGE OF THE MEDICAL EQUIPMENT DESIGNER BASED IN WALTHAM MASS WITH AN OUTPERFORM RATING NEWS THAT ARITECH IS TO BE ACQUIRED BY SENTROL LIFESAFETY SENT ITS SHARES SOARING 2 3/8 TO 6 SENTROL A SUBSIDIARY OF PRIVATELY HELD BERWIND INDUSTRIES SIGNED A MERGER AGREEMENT TO ACQUIRE THE HICKORY NC MAKER OF ELECTRONIC SECURITY PRODUCTS FOR ABOUT 21 MILLION OR 625 A SHARE POSITIVE SECONDHALF AND FULLYEAR OUTLOOKS DROVE UP PACE AMERICAN 1 3/8 TO 11 THE TUCSON ARIZ UNDERWRITER OF SURETY BONDS SAID IN RESPONSE TO RUMORS THAT IT EXPECTS TO BE PROFITABLE FOR BOTH PERIODS THE NEW ISSUES MARKET CONTINUED TO SIZZLE LANDRY'S SEAFOOD CLOSED AT 14 1/4 ABOVE ITS DEBUT PRICE TODAY OF 12 A SHARE LANDRY'S OPERATES SEAFOOD RESTAURANTS 9308200119 930820 PHILIPPINE COMMISSION DRAWS MORE FLAK CRITICS SAY PCGG FORMED TO FIND MARCOS WEALTH IS MEDDLING IN BUSINESSES BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA PHILIPPINES WHEN MAGTANGGOL GUNIGUNDO A SELFASSURED LAWYER AND OCCASIONAL LAY PREACHER SWEPT INTO THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT LAST YEAR THE ORGANIZATION LAUNCHED INTO A FLURRY OF ACTIVITY LONG CRITICIZED FOR INEFFICIENCY AND SLUGGISHNESS THE COMMISSION KNOWN AS THE PCGG SOON REVIVED ITS QUEST FOR ILLGOTTEN WEALTH AMASSED BY FORMER DICTATOR FERDINAND MARCOS AND HIS CRONIES RESURRECTING LONGDORMANT LEGAL ACTIONS AGAINST SOME OF MR MARCOS'S WEALTHIEST ASSOCIATES AND WINNING BATTLES TO INCREASE ITS PRESENCE IN DISPUTED COMPANIES IT GOT FLAK FOR THAT AS WELL I SHALL CONTINUE TO EXPRESS OUTRAGE AND DEEP CONCERN ABOUT THE QUESTIONABLE ACTIVITIES AND RECKLESS FORAYS INTO THE BUSINESS SECTOR OF THE PCGG SAYS REP HERNANDO PEREZ ONE OF MORE THAN 100 CONGRESSMEN WHO RECENTLY SPONSORED BILLS TO SCRAP THE COMMISSION THE CRITICS CITE PERENNIAL CHARGES OF GRAFT AND GREED AGAINST THE COMMISSION'S STAFF AND AGENTS BUT THIS TIME BUSINESSMEN ADD A NEW WORRY THAT UNDER MR GUNIGUNDO'S ACTIVIST LEADERSHIP THE PCGG IS TAKING TOO BIG A ROLE IN THE PRIVATE SECTOR THIS YEAR THE PCGG GAINED CONTROL OF THE BOARD OF TELECOMMUNICATIONS MONOPOLY PHILIPPINE LONG DISTANCE TELEPHONE CO TIGHTENED ITS GRIP ON FOOD AND BEVERAGE MAKER SAN MIGUEL CORP AND THREATENED TO TAKE OVER PARTS OF TOBACCO MAGNATE LUCIO TAN THE LATE MR MARCOSUNDER WHOSE TWODECADE REIGN FAVORITISM CORRUPTION AND PATRONAGE FLOURISHED WAS ALLEGED TO HAVE OWNED STAKES IN THOSE COMPANIES MR GUNIGUNDO SAID THAT THE PCGG JUST WANTS TO MAKE SURE THE ASSETS AREN'T DISSIPATED WHILE COURTS SETTLE THE QUESTION OF OWNERSHIP BUT OTHER ADMINISTRATION SUPPORTERS SAY A LITTLE MEDDLING IN INEFFICIENT BUSINESSES MAY BE JUST WHAT THE COUNTRY NEEDS IN THE HEADY DAYS SOON AFTER MR MARCOS WAS DRIVEN OUT OF MALACANANG PALACE IN 1986 PRESIDENT CORAZON AQUINO CREATED THE PCGG TO FERRET OUT HIS HIDDEN TREASURE ESTIMATED AT MORE THAN 5 BILLION THE BODY WAS GIVEN POWERS TO INVESTIGATE CORRUPTION AND SEQUESTER OR SEIZE PROPERTY IT SUSPECTED WAS MARCOSLINKED ALTHOUGH THOSE POWERS LAPSED IN 1988 THE PCGG CURRENTLY CONTROLS 154 COMPANIES INCLUDING 25 WITH GOVERNMENT NOMINEES ON THEIR BOARDS AT ONE UNITED COCONUT PLANTERS BANK ALL 15 BOARD MEMBERS ARE PCGG APPOINTEES SEQUESTRATION ORDERS AGAINST ABOUT 355 OTHER COMPANIES WEREN'T CARRIED OUT BUT MR GUNIGUNDO BELIEVES THE ORGANIZATION HAS A RIGHT TO ENFORCE THOSE WRITS DESPITE GENERAL SUPPORT FOR THE PCGG'S OBJECTIVES THE GOVERNMENT'S INSTALLATION OF DIRECTORS IN DISPUTED FIRMS HAS BEEN CRITICIZED AS INTERFERENCE IN BUSINESS AND POLITICAL PATRONAGE THROUGH WHICH ADMINISTRATION SUPPORTERS CAN BE REWARDED WITH DIRECTORSHIPS SEQUESTRATION STIFLES BUSINESS SAYS DAVID CASTRO MR GUNIGUNDO'S PREDECESSOR AS PCGG CHAIRMAN THERE IS AN AIR OF UNCERTAINTY A BUSINESS IS EFFECTIVELY UNDER RECEIVERSHIP THE SOONER IT IS ENDED THE BETTER REP PEREZ SAYS THE PCGG HASN'T WORKED HARDER TO RESOLVE LAWSUITS BECAUSE THAT WOULD DEPRIVE PCGG NOMINEES OF BOARDROOM PRIVILEGES WHY WILL THEY WORK HARD TO FINISH THE CASES WHEN THEY CONTINUE TO REAP BENEFITS FOR AS LONG AS THE CASES ARE PENDING HE ASKS THE GOVERNMENT MEANWHILE ALSO HOLDS NEARLY 15 BILLION PESOS 548 MILLION IN ESCROW ACCOUNTS REPRESENTING DIVIDENDS AND OTHER INCOME FROM SEQUESTERED ASSETS THE MONEY IS TO BE RELEASED TO WHOMEVER THE COURTS RULE IS THE LAWFUL OWNER OF THE PROPERTIES GUILLERMO LUZ EXECUTIVE DIRECTOR OF THE MAKATI BUSINESS CLUB AN ASSOCIATION OF LARGE BUSINESSES SAYS HE BACKS THE DRIVE AGAINST MARCOS CRONIES BUT FEARS THE PCGGAPPOINTED NOMINEES ARE EXCEEDING THEIR MANDATE AS WATCHDOGS OVER CORPORATE WEALTH THE GOVERNMENT SHOULD NOT BE IN BUSINESS HE SAYS THERE SHOULD BE SOME TIMETABLE FOR THE COURTS TO MAKE SOME DECISION ON SUCH CASES CONSIDER PHILIPPINE COMMUNICATIONS SATELLITE CORP A SATELLITE COMMUNICATIONS CONCERN IN WHICH COMMISSION APPOINTEES HOLD FOUR OF THE BOARD'S NINE SEATS INCLUDING THE CHAIRMANSHIP THE PCGG DIRECTORS ARE EMBROILED IN A CONTROVERSIAL ATTEMPT TO UNSEAT THE CURRENT PRESIDENT HONORIO PABLADOR OVER ALLEGATIONS OF MISMANAGEMENT AT THE SAME TIME THE GOVERNMENT NOMINEES FACE CHARGES THAT THEY VOTED TO PAY THEMSELVES TWICE AS MUCH AS THE 120000 PESOS IN ANNUAL DIRECTORS' FEES THAT MANILA ALLOWS THEM TO ACCEPT MR GUNIGUNDO ORDERED AN INVESTIGATION BUT THE FINDINGS HAVEN'T BEEN MADE PUBLIC AT ORIENTAL PETROLEUM & MINERALS CORP THE PCGG'S 27 STAKE WAS ENLARGED WHEN PRESIDENT FIDEL V RAMOS BROKERED A COMPROMISE BETWEEN DISPUTING PARTIES GIVING THE PCGG ONE OF THREE SEATS AND THE SWING VOTE ON AN INTERIM MANAGEMENT COMMITTEE WE FEEL THE GOVERNMENT SHOULD NOT STEP INTO THIS COMPLAINS A SENIOR COMPANY OFFICIAL IT'S JUST A PRIVATE CORPORATE BATTLE INTERNECINE DISPUTES PERIODICALLY FLARED UNDER THE ORGANIZATION'S PREVIOUS FOUR CHAIRMEN ALONG WITH ALLEGATIONS OF CORRUPTION ONLY ABOUT 14 BILLION PESOS HAS BEEN RECOVERED FROM MARCOS ASSOCIATES AND SOME OF THAT MONEY IS IN DISPUTE MR GUNIGUNDO THINKS SOME OF THE COMPROMISES HIS PREDECESSORS SIGNED WITH MR MARCOS'S ASSOCIATES WERE BAD DEALS AND HE'S TRYING TO GET THEM RESCINDED MR GUNIGUNDO SAYS HE WON'T TOLERATE WRONGDOING AND ARGUES THAT GOVERNMENT APPOINTEES EXERCISE SELFRESTRAINT AND THAT SEQUESTERED COMPANIES HAVEN'T FALLEN IN VALUE THE GOVERNMENT DOESN'T HESITATE TO THROW ITS WEIGHT AROUND IN SOME CASES AT THE APRIL STOCKHOLDERS' MEETING OF PLDT THE GOVERNMENT WON A MAJORITY OF SEATS ON THE PHONE COMPANY'S 11PERSON BOARD IT PREVIOUSLY HELD THREE SEATS USING ITS CONTROL OF PLDT'S BOARD PLUS THREATS OF A MONOPOLYBUSTING EXECUTIVE ORDER THE GOVERNMENT GOADED THE COMPANY INTO NETWORK AND PHONELINE AGREEMENTS WITH RIVAL COMPANIES COULD IT BE CONCEIVABLE THAT PRIVATE BUSINESS WOULD HAVE DONE IT WITHOUT GOVERNMENT INTERVENTION THE ANSWER IS NO SAYS RODOLFO ROMERO A BUSINESS JOURNALIST APPOINTED BY THE GOVERNMENT TO PLDT'S BOARD POLITICAL SCIENTIST ALEX MAGNO OF THE UNIVERSITY OF THE PHILIPPINES SAYS THE PCGG IS AN IRREGULAR BODY BUT IT HAS GREAT FLEXIBILITY AND CAN COVER THE GAPS LEFT OPEN BY THE REGULAR BODIES THE RAMOS ADMINISTRATION HE SAYS IS COMMITTED TO FREEING UP THE ECONOMY AND MINIMIZING THE GOVERNMENT'S ROLE IN BUSINESS BUT TO GET OUT OF THE ECONOMY IT HAS TO GET IN FIRST MR GUNIGUNDO SAYS HE EXPECTS PENDING CASES TO BE RESOLVED WITHIN TWO YEARS AFTER WHICH THE PCGG SHOULD BE RESTRUCTURED AS AN ANTIGRAFT BODY THE FILE ON MARCOS WEALTH THEN FINALLY COULD BE CLOSED 9308200118 930820 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 310 45 TO 59 DAYS 312 60 TO 89 DAYS 313 90 TO 119 DAYS 314 120 TO 154 DAYS 325 155 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 317 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 284 SIX MONTHS 299 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 307 ONE MONTH 315 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 308 90 DAYS 310 120 DAYS 321 150 DAYS 321 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 673 60 DAYS 681 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 674 60 DAYS 684 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308200117 930820 DUN & BRADSTREET PLANS INITIAL PUBLIC OFFERING FOR ITS GARTNER GROUP NEW YORK DUN & BRADSTREET CORP FILED FOR AN INITIAL PUBLIC OFFERING OF ITS GARTNER GROUP INC UNIT A PROVIDER OF RESEARCH AND ANALYSIS ON THE COMPUTER COMMUNICATIONS AND OTHER TECHNOLOGY INDUSTRIES D&B'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION COMES ABOUT FOUR MONTHS AFTER IT ACQUIRED CONTROL OF THE INFORMATION SERVICES COMPANY ACQUIRING STOCK FROM INFORMATION PARTNERS CAPITAL FUND LP BOSTON FOLLOWING THE OFFERING OF 23 MILLION CLASS A COMMON SHARES D&B WILL CONTINUE TO HOLD ABOUT 57 OF THE COMPANY D&B ALSO AN INFORMATION SERVICES CONCERN INTENDS TO RAISE NET PROCEEDS OF 439 MILLION THROUGH THE 23 MILLION SHARE OFFERING AT AN EXPECTED INITIAL PRICE OF 20 TO 22 A SHARE EXISTING INVESTORS PAID AN AVERAGE OF 74 CENTS A SHARE IN ITS FILING D&B SAID 348 MILLION FROM THE NET PROCEEDS WOULD GO TO ITSELF IN ORDER TO RETIRE CLASS A PREFERRED SHARES OUTSTANDING IT HOLDS REMAINING PROCEEDS WOULD GO TO GENERAL CORPORATE PURPOSES IN THE PAST SEVERAL YEARS GARTNER GROUP STAMFORD CONN HAS SEEN ITS REVENUE RISE BUT THE BOTTOM LINE HAS RECORDED LOSSES REVENUE HAS STEADILY INCREASED FROM 468 MILLION IN FISCAL 1989 TO 851 MILLION IN FISCAL 1992 THE COMPANY'S FISCAL YEAR ENDS SEPT THE COMPANY'S EARNINGS HAVE LAGGED IN FISCAL 1989 THE COMPANY HAD A NET LOSS OF 8 MILLION AND IN ITS MOST RECENT FISCAL YEAR THE COMPANY HAD A NET LOSS OF 3 MILLION OR 43 CENTS A SHARE IN THE NINE MONTHS ENDED JUNE 30 1993 GARTNER REPORTED NET INCOME OF 359 MILLION OR 39 CENTS A SHARE ON REVENUE OF 901 MILLION AFTER THE OFFERING 961 MILLION CLASS A AND B SHARES WILL BE OUTSTANDING THE OVERALLOTMENT OPTION IS FOR 345000 SHARES MORGAN STANLEY & CO IS THE LEAD UNDERWRITER 9308200116 930820 CREDIT RATINGS FIRST BANK SYSTEM INC MINNEAPOLIS STANDARD & POOR'S CORP RAISED ITS RATINGS ON ABOUT 11 BILLION OF THIS BANKHOLDING COMPANY'S DEBT CITING ITS SUCCESS IN ASSIMILATING A NUMBER OF RECENT ACQUISITIONS FIRST BANK'S SENIOR DEBT WAS RAISED TO SINGLEA FROM SINGLEAMINUS ITS SUBORDINATED DEBT WAS MARKED UP TO SINGLEAMINUS FROM TRIPLEBPLUS AND THE RATING ON ITS PREFERRED STOCK WAS INCREASED TO TRIPLEBPLUS FROM TRIPLEB 9308200115 930820 INTERNATIONAL TOP 2 FINNISH BANKS SEEK TO RAISE CAPITAL SPECIAL TO THE WALL STREET JOURNAL HELSINKI FINLAND THIS COUNTRY'S TWO BIGGEST BANKS UNVEILED AMBITIOUS INTERNATIONAL CAPITALRAISING PLANS BACKED BY STATE GUARANTEES IN THE CLEAREST SIGN YET THAT FINLAND'S BANKING CRISIS MAY BE EASING UNITAS LTD PARENT OF FINLAND'S NO 2 BANK UNION BANK OF FINLAND ANNOUNCED A TWOSTEP PLAN TO RAISE ROUGHLY 25 BILLION FINNISH MARKKAA 4324 MILLION IN LOCAL AND INTERNATIONAL FINANCIAL MARKETS DURING THE NEXT FEW MONTHS CITING POSITIVE EFFECTS OF FALLING INTEREST RATES AND RECOVERING STOCK AND PROPERTY PRICES UNITAS PREDICTED THE CAPITAL INJECTION WOULD ENABLE IT TO SURVIVE UNDER PRIVATE OWNERSHIP AND RETURN TO THE BLACK BY 1996 MEANWHILE ARCHRIVAL KANSALLISOSAKEPANKKI FINLAND'S LARGEST BANK SAID ITS BOARD IS EXAMINING SIMILAR MOVES THAT COULD GENERATE AS MUCH AS 28 BILLION MARKKAA IN NEW EQUITY AND PERPETUAL CAPITAL THOUGH KANSALLIS OBTAINED A 18 BILLION MARKKAA STATE GUARANTEE FOR A POSSIBLE OFFERING OF PERPETUAL SECURITIES EXECUTIVES AT THE BANK INSIST AN ISSUE OF NEW SHARES VALUED AT AS MUCH AS 1 BILLION MARKKAA HAS A HIGHER PRIORITY 9308200114 930820 WHO'S NEWS SEAGATE TECHNOLOGY SEAGATE TECHNOLOGY SCOTTS VALLEY CALIF LAUREL L WILKENING 48 YEARDS OLD WAS NAMED A DIRECTOR OF THIS COMPUTER DISKDRIVE MAKER EXPANDING THE BOARD TO EIGHT MEMBERS MS WILKENING IS CHANCELLOR OF THE UNIVERSITY OF CALIFORNIA IRVINE 9308200113 930820 EVEN IF HE CUT CLINTON'S HAIR HE COULDN'T RUN UP THAT TAX BILL BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL MANUEL GONZALES CUTS HAIR FOR A LIVING IN SANTA ROSA CALIF NOW AND THEN HE GETS A BIG TIP LIKE 10 BUCKS STILL HE SAYS HE DIDN'T CLEAR EVEN 10000 LAST YEAR SOMETIMES HE ADMITS HE HAS BEEN A LITTLE LAX IN PAYING HIS TAXES LAST WEEK THE INTERNAL REVENUE SERVICE CAUGHT UP WITH MR GONZALES AND THEN SOME THE BAD NEWS IS THAT THE IRS TOLD HIM HIS TAX LIABILITY WAS 6803739420632 THE GOOD NEWS IS THAT THE IRS WAS ONLY ASKING FOR 411218662544 I JUST STARTED STUTTERING THERE WERE SO MANY COMMAS I THOUGHT IT WAS A SERIAL NUMBER MR GONZALES SAYS I FELL OFF MY CHAIR NOT THAT THE IRS ISN'T UNDERSTANDING IT SAID MR GONZALES COULD MAKE PAYMENTS OF 150 A MONTH THAT MEANS MR GONZALES OR SOME VERY PUTUPON DESCENDANTS WOULD PAY OFF THE FIRST BILLION IN A MERE 5555555 YEARS ACTUALLY MR GONZALES SAYS HIS BACK TAXES ARE ABOUT 7600 AND HE HAS ALREADY STARTED MAKING PAYMENTS A SHOCKER HE CALLS THE EXPERIENCE I DON'T KNOW HOW THE ERROR GOT BY THE IRS SAYS 4623 OTHER TAXPAYERS GOT INFLATED BILLS FOR 68 BILLION BECAUSE OF A COMPUTER ERROR IN TRYING TO REPROGRAM A COMPUTER TO GIVE VICTIMS OF THE FLOODING IN THE MIDWEST A RESPITE FROM MONTHLY NOTICES THE IRS INADVERTENTLY MANAGED TO CLEAR UP THE NATIONAL DEBT REAPING MORE THAN A 300 TRILLION REVENUE WINDFALL FOR THE TREASURYASSUMING EVERYONE PAID WITHIN DAYS IRATE TAXPAYERS WERE CALLING TO COMPLAIN WE TRIED TO HELP WITH THE FLOOD SAYS JOHNELL HUNTER AN IRS SPOKESWOMAN AND WE CAUSED A FLOOD OF ANXIETY THE IRS SAYS THE ERROR HAS BEEN CORRECTED AND LETTERS OF APOLOGY SENT OUT ROBERT MCINTYRE DIRECTOR OF CITIZENS FOR TAX JUSTICE IN WASHINGTON SAYS IT ISN'T THE BILLIONDOLLAR OVERBILLINGS THAT BUG HIM AS MUCH AS THE THOUSANDDOLLAR OVERCHARGINGS THAT MIGHT ESCAPE SCRUTINY WHEN THEY OVERBILL YOU FOR A BILLION YOU LAUGH LIKE DO I TAKE OUT A SECOND MORTGAGE' HE SAYS IT'S WHEN IT'S SMALLER THAT IT'S SCARY INDEED MR GONZALES SAYS CLIENTS IN THE SHOP HAVE TOLD HIM ABOUT GETTING OVERCHARGED AND JUST PAYING INSTEAD OF SPENDING THE TIME AND MONEY TO FIGHT IT I DON'T WANT TO SAY ANYTHING DEROGATORY ABOUT THE IRS HE ADDS YOU KNOW HOW THEY CAN BE 9308200112 930820 SNAPPLE GRAPPLES WITH RIGORS OF SUCCESS TO SPEED PRODUCTION SOME DRINK FLAVORS ARE PUT ON ICE BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW YORK DAN TARCZON DOESN'T THINK TWICE WHEN HE SPIES A SNAPPLE ORANGE ICED TEA IN A STORE NEAR HIS DOWNERS GROVE ILL HOME IF I SEE IT I BUY IT AND THROW IT IN THE FRIDGE SAYS THE 23YEAROLD SALES AND MARKETING ASSISTANT FOR A CHICAGOAREA CABLE TV STATION YOU CAN'T FIND IT ANYWHERE ALL I EVER SEE IS THE RASPBERRY ICED TEA OR THE LEMONADE MORE FANS OF SNAPPLE BEVERAGE CORP'S DRINKS ARE FEELING MR TARCZON'S FRUSTRATION THESE DAYS THE COMPANY HAS TEMPORARILY CUT PRODUCTION OF SOME OF ITS 59 FLAVORS IN A QUEST TO FILL A BURGEONING DEMAND FOR THE MOST POPULAR ONES THE VALLEY STREAM NY MAKER OF READYTODRINK ICEDTEA AND FRUITJUICE DRINKS IS SACRIFICING MINT TEA AND CRANBERRY TEA FOR EXAMPLE SO IT CAN MAKE MORE LEMON TEA AND KIWISTRAWBERRY JUICE DRINK OUTAGES OF FLAVORS WILL BE SPOTTY AND RANDOM SAYS ADAM FIELD SNAPPLE'S MANAGER OF FINANCIAL PLANNING ALL 59 FLAVORS AREN'T OUT THERE EVERYWHERE REDUCING THE NUMBER OF FLAVORS ALLOWS BOTTLING PLANTS TO PRODUCE DRINKS WITH FEWER STOPS FOR CHANGEOVERS THE COMPANY ALSO HAS ADDED FOUR BOTTLERS IN THE PAST TWO MONTHS BRINGING ITS TOTAL TO 26 SNAPPLE WHOSE 1992 SALES CATAPULTED 144 TO 232 MILLION HAS ENJOYED ROBUST GROWTH ANALYSTS EXPECTED ITS SALES TO JUMP 50 TO 60 THIS YEAR MR FIELD SAYS BUT YEAR TO DATE IT'S BEEN 100 SNAPPLE'S STOCK HAS SOARED SINCE ITS SHARES WERE FIRST OFFERED PUBLICLY LAST DECEMBER AT ONE POINT TRADING AT 250 TIMES EARNINGS THE SHARES SPLIT 2FOR1 IN LATE SPRING AND ON MONDAY THE COMPANY ANNOUNCED PLANS FOR ANOTHER 2FOR1 SPLIT PRODUCTION OF SNAPPLE'S TOP 15 FLAVORS WHICH TOTAL ABOUT 80 OF SALES WON'T BE SUSPENDED ACCORDING TO MR FIELD THE TOP FLAVORS INCLUDE LEMON ICED TEA RASPBERRY ICED TEA AND PEACH ICED TEA AS WELL AS KIWISTRAWBERRY FRUIT DRINK LEMONADE PINK LEMONADE AND FRUIT PUNCH ALTHOUGH UNHAPPY AT THE PROSPECT OF POSSIBLY DISAPPOINTING CUSTOMERS BOTH DISTRIBUTORS AND RETAILERS AGREE THE COMPANY IS IN A FABULOUS POSITION FACING AS IT DOES SKYROCKETING DEMAND BUT THEY SAY THERE ARE SIGNS THAT GROWING PAINS COULD HURT SHORTTERM SALES CHERI BORGES ASSISTANT MANAGER OF A WAWA CONVENIENCE STORE IN ASBURY PARK NJ SAYS SHE'S HAVING DIFFICULTY STOCKING SNAPPLE'S REGULAR TEA MINT TEA AND GRAPE AND KIWI FRUIT DRINKS SOME PATRONS SHE SAYS ARE BUYING LIPTON READYTODRINK ICED TEA MADE IN PARTNERSHIP BY UNILEVER NV'S THOMAS J LIPTON CO AND PEPSICO INC WITHOUT SNAPPLE WE'RE LOST SAYS MS BORGES WE'VE GOT IRATE CUSTOMERS MR FIELD SAYS SUCH TEMPORARY SHORTAGES SHOULD STOP WHEN THE COMPANY CEASES TO GROW SO QUICKLY THOUGH HE DECLINES TO SAY HOW LONG PRODUCTION WILL REMAIN SUSPENDED HOWEVER THAT'S LITTLE SOLACE TO DISTRIBUTORS AND RETAILERS FEELING THE PINCH DURING A NEARRECORD SUMMER FOR HEAT IN NEW YORK SANTOS SOTO OWNER OF BURNSIDE BEVERAGE CENTER INC A DISTRIBUTOR IN THE BRONX HASN'T RECEIVED A SNAPPLE SHIPMENT IN MORE THAN TWO WEEKS MR SOTO WHO USUALLY GETS TWO SHIPMENTS A WEEK TOTALING 1080 CASES SAYS THE LOST BUSINESS COSTS HIM 1000 TO 1500 A WEEK AND IN UTAH WHERE SNAPPLE'S FRUITFLAVORED OFFERINGS ARE POPULAR AMONG THE MORMON POPULATION DUE TO THE DRINKS' LACK OF ALCOHOL OR CAFFEINE THINGS ARE GETTING STICKY FOR MIKE WOODBURY GENERAL MANAGER OF WASATCH SNACK DISTRIBUTING INC IN SALT LAKE CITY IT'S A PROBLEM IN UTAH MORE THAN ANY OTHER STATE SAYS MR WOODBURY NOTING HIS CLIENTELE'S RELIGIOUS PROSCRIPTIONS SNAPPLE'S MR FIELD NOTES THAT NONCAFFEINATED DRINKS ARE AMONG SNAPPLE'S TOP 15 FLAVORS AND THAT ALL FLAVORS ARE REPRESENTED SOMEWHERE IN INVENTORIES AROUND THE COUNTRY HOWEVER MR FIELD SAYS THE COMPANY HAS NO PLANS TO ALLEVIATE SHORTAGES BY MOVING ITS PRODUCTS FROM REGION TO REGION AS IT DID LAST YEAR WHEN THE COMPANY MADE ITS PUSH INTO CALIFORNIA CLEARLY CANADIAN'S LESSON BEVERAGEINDUSTRY VETERANS SAY SNAPPLE'S CRUNCH ISN'T UNUSUAL FOR COMPANIES WITH A HOT PRODUCT ESPECIALLY GIVEN SNAPPLE'S MULTIPLE VARIETIES BRIAN MORELLO SECRETARYTREASURER OF MILWAUKEE DISTRIBUTOR BELOIT BEVERAGE CO LIVED THROUGH A SIMILAR SITUATION WITH FLAVOREDWATER DRINKS MADE BY CLEARLY CANADIAN BEVERAGE CORP TWO YEARS AGO BELOIT WHICH DISTRIBUTES PRODUCTS INCLUDING CLEARLY CANADIAN BUT NOT SNAPPLE HAD DIFFICULTY GETTING PRODUCTS FROM THAT COMPANY WHEN IT WAS EXPERIENCING ENORMOUS SALES GROWTH HOWEVER HE PREDICTS THAT SNAPPLE'S ABILITY TO MEET DEMAND WILL SMOOTH OUT WHEN SALES BEGIN TO REACH A PLATEAU SAYS MR MORELLO WHAT YOU'RE SEEING WITH SNAPPLE IS A FULLY ABSORBED DISTRIBUTION NETWORK COMING TO BE IT'S A FABULOUS PROBLEM TO HAVE 9308200111 930820 ECONOMY TRADE DEFICIT IS THE LARGEST IN OVER 5 YEARS EXPORTS FELL 33 IN JUNE WHILE IMPORTS INCREASED 51 TO A RECORD LEVEL BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US EXPORTS TOOK A BIG FALL IN JUNE HELPING TO WIDEN THE US TRADE DEFICIT TO ITS BIGGEST LEVEL IN MORE THAN FIVE YEARS THE TRADE DEFICIT DETERIORATED TO 1206 BILLION FROM 838 BILLION IN MAY THE COMMERCE DEPARTMENT SAID EXPORTS FELL 33 TO 3765 BILLION WHILE IMPORTS CLIMBED 51 TO 4970 BILLION A RECORD SUCH A REVISION WOULDN'T BE DEVASTATING THE SECOND QUARTER IS OVER AND DONE WITH BUT IT WOULD MEAN THE US RECOVERY LAST QUARTER WAS MUCH MORE LETHARGIC THAN INITIALLY THOUGHT AND POSSIBLY WORSE THAN IN THE FIRST QUARTER WHEN THE ECONOMY GREW A MERE 06 ANALYSTS SAID THAT THE WEAKNESS IN EXPORTS DURING JUNE REFLECTS CONTINUED ECONOMIC MALAISE IN MANY WESTERN EUROPEAN COUNTRIES THE DESTINATION OF MORE THAN 20 OF US EXPORTS IT'S VERY CLEAR THAT THE OUTLOOK FOR EXPORTS TO DEVELOPED COUNTRIES IS AS DISMAL AS CAN BE SAID MR HORRIGAN EXPORTS TO GERMANY FRANCE BRITAIN AND THE NETHERLANDS DROPPED SHARPLY IN JUNE WITH MOST OF THE DECLINE CONCENTRATED IN INDUSTRIAL SUPPLIES US EXPORTS TO DEVELOPING COUNTRIES HOWEVER WERE QUITE BRISK SALES TO MEXICO FOR EXAMPLE INCREASED 42 BUT WHILE THE SALES TO DEVELOPING COUNTRIES ARE ROBUST THEY CAN'T ENTIRELY OFFSET THE DAMAGE BEING DONE BY WEAK EXPORTS ELSEWHERE THAT'S BECAUSE DEVELOPING COUNTRIES HAVE A MUCH SMALLER PORTION OF THE US EXPORT PIE US EXPORTS TO CENTRAL AMERICA TOTALED ONLY 293 BILLION IN JUNE WHILE SALES TO WESTERN EUROPE TOTALED 852 BILLION THE WEAKNESS IN EXPORTS REINFORCES OTHER SIGNS THAT THE MANUFACTURING SECTOR IS WEAK FACTORIES HAVE BEEN SLASHING THEIR PAYROLLS SINCE THE START OF THE YEAR AND ORDERS HAVE BEEN LACKLUSTER INDUSTRIAL PRODUCTION SHOWED RENEWED LIFE IN JULY BUT IT WAS MAINLY DUE TO THE INCREASED USE OF UTILITIES BECAUSE OF THE HOT WEATHER IN SOME WAYS IMPORT NEWS IN THE TRADE REPORT WAS ENCOURAGING AND SUGGESTS THAT CONSUMERS ARE STILL WILLING TO SPEND DESPITE SUBPAR GAINS IN JOBS AND INCOME THE INCREASE IN SALES TO THE US WAS BROADBASED THERE WERE SIGNIFICANT INCREASES IN IMPORTS OF INDUSTRIAL SUPPLIES AND MATERIALS CAPITAL GOODS AND CONSUMER GOODS AS USUAL THE US POSTED ITS LARGEST TRADE DEFICIT WITH JAPAN THE DEFICIT WITH CHINA WAS ALSO LARGE SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 6000 TO 325000 IN THE WEEK ENDED AUG 14 THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF LABORMARKET CONDITIONS FELL TO 347500 FROM 354250 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9308200110 930820 ASEA BROWN HAD SLUGGISH RESULTS IN '93 FIRST HALF COMPANY SURPRISES ANALYSTS WITH SPECIAL CHARGE TOTALING 500 MILLION BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH IN RELEASING SLUGGISH PRETAX EARNINGS FOR THE 1993 FIRST HALF SWISSSWEDISH ELECTRICAL ENGINEERING CONCERN ABB ASEA BROWN BOVERI LTD SURPRISED ANALYSTS WITH THE ANNOUNCEMENT OF A 500 MILLION RESTRUCTURING CHARGE IN THE REMAINDER OF THE YEAR ABB SAID THE NONRECURRING CHARGE WOULD RESULT FROM A SPEEDINGUP OF ITS RESTRUCTURING PROGRAM FOR THE NEXT 18 MONTHS THE COMPANY SAID ABB HAS DECIDED TO ACCELERATE THE RESTRUCTURING MEASURES SCHEDULED FOR THE YEARS TO COME BECAUSE THE PROLONGED RECESSION IN EUROPE IS EXPECTED TO CONTINUE FOR SOME TIME ABB ADDED THAT THE SLOW EUROPEAN MARKET CALLS FOR PLANT CONSOLIDATIONS AND THE INTEGRATION OF FACILITIES IN WESTERN AND EASTERN EUROPE THE RESTRUCTURING PROGRAM WILL ALSO AFFECT NORTH AMERICA A NUMBER OF PRODUCTION AND ENGINEERING FACILITIES IN EUROPE AND NORTH AMERICA HAVE BEEN IDENTIFIED FOR CLOSURE OR DOWNSIZING IT SAID ANALYSTS GENERALLY JUDGED ABB'S OPERATIONAL PERFORMANCE IN THE FIRST HALF POSITIVELY THE COMPANY SAID OPERATING EARNINGS ROSE 4 TO 937 MILLION FROM 897 MILLION IN THE SAME PERIOD LAST YEAR THE COMPANY REPORTED INCOME BEFORE TAXES OF 497 MILLION COMPARED WITH 496 MILLION IN THE FIRST SIX MONTHS OF 1992 POWER PLANTS AND FINANCIAL SERVICES REPORTED HIGHER EARNINGS WHEREAS OTHER BUSINESS SEGMENTS SHOWED ROUGHLY UNCHANGED OR LOWER EARNINGS ABB ADDED GEOGRAPHICALLY ABB SAID DEMAND WAS HIGH IN ASIA RECOVERING SLOWLY IN NORTH AMERICA GOOD IN GERMANY AND SWITZERLAND AND SHOWING IMPROVEMENT IN THE UK AND THE NETHERLANDS AT FIRST GLANCE IN THE PRESENT ECONOMIC AND CURRENCY CLIMATE THE RESULT LOOKS REALLY GOOD SUGGESTED URS BRUNNER HEAD OF THE SWISS EQUITY TEAM AT SWISS VOLKSBANK HOWEVER MR BRUNNER AND OTHER ANALYSTS SAID THE SECONDHALF CHARGE OF 500 MILLION WAS UNEXPECTED OPERATING PERFORMANCE IN THE FIRST HALF IS EVEN A LITTLE BETTER THAN EXPECTED BUT THE MASSIVE INCREASE IN NONRECURRING ITEMS FOR THE SECONDHALF IS A BAD SURPRISE COMMENTED MICHEL PETITPIERRE HEAD OF RESEARCH AT PICTET & CIE HOWEVER THE COMPANY SAID THAT NONRECURRING ITEMS WOULDN'T AFFECT THE DIVIDEND PAYOUT THE ABB SAID ITS BOARD OF DIRECTORS WILL PROPOSE THAT THE 1993 DIVIDEND TO BE PAID OUT IN SPRING 1994 BE BASED ON NET INCOME EXCLUDING THE IMPACT OF THE NONRECURRING ITEMS ANALYSTS ARE DIVIDED ON THE STOCK OUTLOOK ABB ISN'T TRADED ON STOCK EXCHANGES ASEA AB OF SWEDEN AND BBC BROWN BOVERI AG OF SWITZERLAND EACH OWN 50 OF THE COMPANY THEIR SHARES ARE PUBLICLY LISTED AND INVESTORS BUY ABB WHEN THEY ACQUIRE THE PARENTS' STOCK BECAUSE OF ABB'S POTENTIAL TO BENEFIT IN THE LONG TERM FROM ANY ECONOMIC RECOVERY ENSKILDA RESEARCH HAS HAD A BUY RECOMMENDATION ON THE PARENT STOCK FOR SOME TIME WE LIKE THE COMPANY IT HAS DONE A LOT TO REDUCE ITS COST BASE THERE WILL BE A SIGNIFICANT INCREASE IN PROFITS WHEN THE REVIVAL COMES SAID MR CLARK PICTET ALSO LIKES ABB WE SEE BROWN BOVERI STOCK AS A PLAY FOR 1994 AND 1995 EXPLAINS MR PETITPIERRE HOWEVER SWISS VOLKSBANK'S MR BRUNNER BELIEVES BROWN BOVERI IS NOW OVERPRICED WE ARE RATHER ON THE SELL SIDE UNTIL THE SHARE PRICE COMES DOWN MR BRUNNER EXPLAINED IN THE FIRST SIX MONTHS REVENUE WAS 5 LOWER AT 1308 BILLION FROM 1383 BILLION IN THE SAME PERIOD OF 1992 IN THE SAME PERIOD ORDER INTAKE DECREASED BY 12 TO 1503 BILLION FROM 171 BILLION ABB SAID THE DECLINES WERE PRIMARILY DUE TO EXCHANGERATE FLUCTUATIONS 9308200109 930820 MANNESMANN AG POSTS A NET LOSS FOR SIX MONTHS SPECIAL TO THE WALL STREET JOURNAL DUESSELDORF GERMANY MANNESMANN AG PLUNGED DEEPLY INTO THE RED IN THE FIRST HALF OF 1993 FOR THE SIX MONTHS THE GERMAN INDUSTRIAL GROUP REPORTED A NET LOSS OF 467 MILLION MARKS 2781 MILLION IT HAD A NET PROFIT OF 15 MILLION MARKS FOR THE YEAREARLIER PERIOD SALES INCHED UP 03 TO 1287 BILLION MARKS FROM 1282 BILLION MARKS HOWEVER ORDERS FELL 64 TO 1413 BILLION MARKS COMPARED WITH 1510 BILLION MARKS MANNESMANN WARNED THAT IT DOESN'T EXPECT ANY CHANGE IN THE BUSINESS ENVIRONMENT IN ADDITION THE COMPANY SAID FULLYEAR SALES WOULD MATCH 1992 LEVELS BUT THAT ORDERS WOULD BE LOWER ON THE FRANKFURT STOCK EXCHANGE YESTERDAY MANNESMANN SHARES FELL 830 MARKS TO 33320 MARKS MANNESMANN ATTRIBUTED ITS LOSS TO A COMBINATION OF FACTORS INCLUDING A CONTINUING RESTRUCTURING AND RATIONALIZATION PROGRAM AND HEAVY DOWNWARD PRESSURE ON THE PRICES OF ITS PRODUCTS IN PARTICULAR MANNESMANN SAID ITS MACHINERY AND PLANT CONSTRUCTION OPERATIONS CAME UNDER HEAVY PRESSURE ALTHOUGH MANNESMANN SAID IT HAS BOOSTED PRODUCTIVITY IT ALSO NOTED THAT FURTHER PROGRESS NEEDS TO BE MADE BEFORE IT CAN AGAIN TURN A PROFIT AMONG THE FEW BRIGHT POINTS IN THE OTHERWISE BLEAK PICTURE IS MANNESMANN'S NEW MOBILE TELEPHONE NETWORK CALLED THE D2 NETWORK THE GROWTH RATE OF D2 REMAINS HIGH WITH BOTH DEMAND AND SALES CLIMBING RAPIDLY SAID WERNER H DIETER MANNESMANN CHAIRMAN THE NUMBER OF CUSTOMERS HAS REACHED MORE THAN 300000 AND WE WILL REACH THE BREAKEVEN POINT FOR THE D2 NETWORK IN 1994 HOWEVER IF THE D2 NETWORK BREAKS EVEN NEXT YEAR IT WON'T BE SIGNIFICANTLY AHEAD OF SCHEDULE THE COMPANY GAVE THE SAME TIMETABLE IN DECEMBER ALTHOUGH MANNESMANN DIDN'T PROVIDE PROFIT FIGURES FOR ITS DIFFERENT SECTORS THE COMPANY DID BREAK DOWN ITS SALES SALES BY THE TELECOMMUNICATIONS DIVISION WHICH INCLUDES THE D2 OPERATIONS SOARED IN THE FIRST HALF TO 327 MILLION MARKS FROM 1 MILLION MARKS ALTHOUGH MANNESMANN NOTED THAT PRICES WERE UNDER PRESSURE IN ITS MACHINERY AND FACTORYBUILDING OPERATIONS SALES FOR THE DIVISION ROSE 83 TO 523 BILLION MARKS FROM 483 BILLION MARKS IN THE COMPANY'S TRUCKBUILDING DIVISION SALES TUMBLED 11 TO 308 BILLION MARKS FROM 348 BILLION MARKS WHILE ORDERS FELL 15 THE ELECTRONICS DIVISION SAW SALES FALL 94 TO 619 MILLION MARKS FROM 683 MILLION MARKS AND ORDERS FALL 6 TO 790 MILLION MARKS ORDERS FOR MANNESMANN'S PIPELINE OPERATIONS FELL 9 WHILE SALES DROPPED 18 TO 193 BILLION MARKS FROM 234 BILLION MARKS THE COMPANY ALSO NOTED THAT PRICES FOR PIPELINES REMAINED UNDER HEAVY PRESSURE 9308200108 930820 INTERNATIONAL GERMANY IS SEEN REDUCING RATES SOON DESPITE JULY'S GROWTH IN MONEY SUPPLY BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY'S MONEY SUPPLY EXPANDED AT A FASTER CLIP IN JULY BUT THE CENTRAL BANK IS EXPECTED TO SWALLOW ANY NEW INFLATION WORRIES AND MOVE SOON FOR ANOTHER REDUCTION IN OFFICIAL INTEREST RATES THE BUNDESBANK SAID THE BROADLY DEFINED M3 MEASURE OF MONEY SUPPLY GREW AT A SEASONALLY ADJUSTED ANNUALIZED RATE OF 75 IN JULY THE MEASURE WAS UP FROM 7 FOR JUNE AND WIDENED FROM THE BANK'S 1993 TARGET RANGE FOR M3 OF 45 TO 65 M3 GROWTH IS MEASURED FROM AN AVERAGE FOR THE FOURTHQUARTER OF 1992 IN A SEPARATE SIXMONTH CALCULATION M3 EXPANDED AT AN ANNUALIZED 11 IN JULY COMPARED WITH 81 FOR THE SIX MONTHS THROUGH JUNE THE BUNDESBANK SAID THE ACCELERATION WAS DUE IN PART TO THE BANK'S 60 BILLION MARKS 3572 BILLION IN FOREIGNEXCHANGE INTERVENTION LAST MONTH ON BEHALF OF AILING EUROPEAN CURRENCIES BUT THE BUNDESBANK SAID SOME OF THE INTERVENTION SUMS WOULD SHOW UP IN THE AUGUST M3 WHICH ECONOMISTS EXPECT TO ROUGHLY EQUAL THE JULY EXPANSION RATE IN DIFFERENT TIMES A RISE IN THE EARLY INFLATION INDICATOR MIGHT MOVE THE BUNDESBANK TO KEEP CREDIT REINS TIGHT TO SAFEGUARD ITS CREDIBILITY AS A GUARANTOR OF STABLE MONEY AND HEALTHY BOND MARKETS BUT ANALYSTS EXPECT THAT CURRENCY CONCERNS AND GERMANY'S STUBBORN RECESSION WILL FORCE THE BUNDESBANK TO REDUCE RATES AGAIN SOON BONN'S PLANNED FISCAL TIGHTENING AND THE PROSPECT OF GERMAN UNEMPLOYMENT PUSHING THROUGH THE FOUR MILLION MARK HAS INTENSIFIED PRESSURE ON THE CENTRAL BANK FOR MONETARY STIMULUS MANY ECONOMISTS SEE THE BUNDESBANK LOWERING OFFICIAL INTEREST RATES AT LEAST BY THE END OF NEXT MONTH THEY SAY FINANCIAL MARKETS ALREADY ARE LOOKING FOR A HALFPERCENTAGEPOINT CUT SOMETHING HAS TO BE DONE TO HELP SPARK ECONOMIC ACTIVITY IN GERMANY SAID ULRICH BECKMANN AN ECONOMIST AT DB RESEARCH THE ANALYSIS UNIT OF DEUTSCHE BANK AG HE SEES A REDUCTION IN GERMANY'S DISCOUNT RATE TO 625 OR 6 FROM 675 AS EARLY AS THURSDAY THE NEXT SCHEDULED MEETING OF THE BUNDESBANK'S CENTRAL BANK COUNCIL THE DISCOUNT RATE IS THE RATE CHARGED FOR OVERNIGHT LOANS TO BANKS AND OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS MR BECKMANN ALSO SAID THE M3 FIGURE ISN'T AS BAD AS IT LOOKS HE RECALLED THAT THE AGGREGATE FINISHED 1992 WITH A 94 EXPANSION RATE FAR ABOVE THAT YEAR'S TARGET RANGE OF 35 TO 55 THE BUNDESBANK ALREADY HAS ABSORBED MUCH OF THE CURRENCY INTERVENTION LIQUIDITY FROM MONEY MARKETS IN OPENMARKET OPERATIONS IN ADDITION LONGTERM BOND YIELDS IN GERMANY HAVE BEEN EASING IN RECENT WEEKS REFLECTING MARKET CONFIDENCE THAT INFLATION HAS PEAKED ECONOMISTS SAY THE KEY COULD LIE IN AUGUST INFLATION DATA WHICH INDIVIDUAL GERMAN STATES BEGIN REPORTING NEXT WEEK ANY SLOWING FROM JULY'S 43 ANNUAL INFLATION RATE IN WESTERN GERMANY COULD PROVIDE THE BUNDESBANK WITH AN EXCUSE TO LOWER RATES THEY HAVE TO BE ABLE TO POINT TO A BETTER INFLATION PICTURE AND LOWER BOND YIELDS IF THEY CAN'T THEY HAVE PROBLEMS SAID ALISON COTTRELL AN INTERNATIONAL ECONOMIST AT MIDLAND GLOBAL MARKETS RESEARCH IN LONDON M3 IS COMPOSED OF CASH IN CIRCULATION AND MOST FORMS OF SAVINGS AS WELL AS SIGHT DEPOSITS AND TIME DEPOSITS OF LESS THAN FOUR YEARS MONEY SUPPLY USUALLY CONTRACTS IN A RECESSION BESIDES CURRENCY INTERVENTION GERMANY'S MONEY SUPPLY HAS BEEN SWOLLEN BY GOVERNMENT BORROWING FOR AID TRANSFERS TO EASTERN GERMANY 9308200107 930820 INTERNATIONAL DISPUTE THREATENS BRITISH TAIWAN AEROSPACE VENTURE SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN A PLANNED JOINT VENTURE BETWEEN BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP TO PRODUCE PASSENGER JETS MAY COLLAPSE BECAUSE OF A ROW OVER BANK LOANS A SENIOR TAIWAN GOVERNMENT OFFICIAL SAID VICE ECONOMICS MINISTER YANG SHIHCHIEN SAID BRITISH AEROSPACE ACCUSED TAIWAN OF FAILING TO PROVIDE 460 MILLION IN LOANS FOR THE 3791 MILLION VENTURE A BANKING CONSORTIUM LED BY THE STATERUN CHIAOTUNG BANK IS DEMANDING COLLATERAL IN THE FORM OF PROPERTY OR OTHER SECURITIES FROM THE VENTURE KNOWN AS AVRO BEFORE PROVIDING THE LOANS IN LINE WITH NORMAL LENDING PRACTICE BRITISH AEROSPACE REJECTED THE COLLATERAL DEMAND MR YANG SAID ADDING THAT JOHN CAHILL CHAIRMAN OF BRITISH AEROSPACE WILL VISIT TAIWAN NEXT WEEK FOR A FINAL TALK TO TRY TO RESOLVE THE PROBLEM IN LONDON A BRITISH AEROSPACE SPOKESMAN SAID IN ANY NEGOTIATIONS YOU HAVE CALM SEAS AND THEN A HEAD WIND WE ARE CONTINUING TO NEGOTIATE IT'S IMPORTANT TO REMEMBER THAT THE TAIWANESE GOVERNMENT IS ABSOLUTELY BEHIND THIS DEAL 9308200106 930820 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EQUITABLE OF IOWA COS AN OFFERING OF 3273200 COMMON SHARES VIA SALOMON BROTHERS INC AND DAIN BOSWORTH INC UNICARE FINANCIAL CORP AN OFFERING OF UP TO 1250000 COMMON SHARES VIA SMITH BARNEY SHEARSON INC DEAN WITTER REYNOLDS INC AND FURMAN SELZ INC OASIS RESIDENTIAL INC AN INITIAL OFFERING OF 7275000 COMMON SHARES VIA KIDDER PEABODY & CO AND PAINEWEBBER INC 9308200105 930820 TI IS SPENDING UP TO 1 BILLION ON CHIP FACILITY RESURGENT COMPANY MOVES TO MEET NEW DEMAND SHORTER PRODUCT CYCLES BY HAL LANCASTER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC RESPONDING TO INCREASED DEMAND AND A NEED TO STAY AHEAD OF SHORTENING PRODUCT CYCLES SAID IT WILL BUILD A SEMICONDUCTOR DEVELOPMENT AND MANUFACTURING FACILITY HERE THAT WILL COST FROM 750 MILLION TO 1 BILLION THE PROJECT ALSO REFLECTS THE RESURGENCE OF TI AFTER LOSING MARKET SHARE FOR SEVERAL YEARS THE ONETIME LEADER IN THE CHIP MARKET STARTED BOUNCING BACK LAST YEAR AS STATEOFTHEART PLANTS CAME ON LINE AND THE COMPANY SHIFTED ITS STRATEGY TO EMPHASIZE HIGHERMARGIN SPECIALIZED CHIPS OVER COMMODITY MEMORY CHIPS THE STOCK MARKET HAS REWARDED THE COMPANY'S RECOVERY OF MARKET SHARE AND IMPROVED PROFITS TI'S STOCK HAS RISEN STEADILY SINCE AUG 3 WHEN IT CLOSED AT 7075 YESTERDAY THE STOCK CLOSED AT 81125 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEW FACILITY WHICH WAS FIRST REPORTED BY THE DALLAS MORNING NEWS WILL FOCUS ON ADVANCED AND SPECIALIZED COMPUTER CHIPS AND INTEGRATED CHIPS THAT COMBINE MULTIPLE FUNCTIONS ON A SINGLE CHIP MOREOVER TI SAID THE PLANT WILL PRODUCE SEMICONDUCTORS WITH DIMENSIONS OF 025 MICRONS AND UNDER TWO GENERATIONS AHEAD OF THE CURRENT 050MICRON STATE OF THE ART THE MEASURE 025 MICRONS IS 400 TIMES SMALLER THAN THE DIAMETER OF A HUMAN HAIR BUT JERRY JUNKINS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW AFTER A PRESS BRIEFING THAT THE MANUFACTURING FACILITY WOULD ADD LESS THAN 10 TO TI'S WORLDWIDE PRODUCTION CAPACITY MORE CRITICAL HE SAID WAS THE 300 MILLION FIRST PHASE OF THE PROJECT WHICH WILL FEATURE A PRODUCTIONDEVELOPMENT CENTER TI EXPECTS THAT THE WORK DONE IN THAT FACILITY WILL CUT IN HALF ITS 24TO36MONTH PROTOTYPETOPRODUCTION CYCLE A FACTOR HE SAID WAS CRITICAL TO TI'S CUSTOMERS IN A COMPETITIVE MARKETPLACE WHERE CONSUMER ELECTRONICS PRODUCTS ARE OBSOLETE IN SIX TO EIGHT MONTHS AND PCS ARE ANTIQUATED IN TWO YEARS THE PROJECT'S FIRST PHASE IS EXPECTED TO BE COMPLETED BY THE END OF 1995 AND WILL EMPLOY ABOUT 250 PEOPLE MR JUNKINS SAID THE FACILITY WAS BEING LOCATED AT THE COMPANY'S HEADQUARTERS COMPLEX HERE TO TAKE ADVANTAGE OF ITS PROXIMITY TO THE COMPANY'S RESEARCH AND DEVELOPMENT LABS THE COMPANY ALSO RECEIVED A 18 MILLION ANNUAL TAX ABATEMENT FOR FIVE YEARS FROM THE CITY OF DALLAS WHICH COULD INCREASE TO 27 MILLION IF 50 OF THE NEW FACILITY'S HIRES COME FROM LARGELY MINORITY SOUTH DALLAS MR JUNKINS NOTED THAT WITH RISING WAGES IN EUROPE AND A SURGING YEN IN JAPAN THE PLANNED DALLAS PLANT WOULD BE COMPETITIVE IN COSTS THE SECOND PHASE WHICH WILL ADD 382000 SQUARE FEET OF MANUFACTURING SPACE AND EMPLOY AN ADDITIONAL 500 PEOPLE IS EXPECTED TO BE COMPLETED BY 1998 TI IS ONE OF SEVERAL US CHIP MAKERS TO ANNOUNCE THE CONSTRUCTION OR EXPANSION OF MANUFACTURING FACILITIES IN THE US IN APRIL INTEL CORP ANNOUNCED A 1 BILLION ADDITION TO ITS RIO RANCHO NM FACILITY WHILE IN JULY MOTOROLA INC SAID IT WILL BUILD A 1 BILLION PLANT IN AUSTIN TEXAS JERRY HUTCHESON CHIEF EXECUTIVE OF VLSI RESEARCH INC A MARKETRESEARCH FIRM THAT TRACKS THE CHIP MARKET SAID THE NEW FACILITIES REFLECT THE CONTINUING RECOVERY OF THE US SEMICONDUCTOR INDUSTRY WHICH HAS BEEN REGAINING MARKET SHARE FROM THE JAPANESE AFTER A DECADELONG SLUMP AND HAS RECENTLY NOSED AHEAD OF ITS JAPANESE RIVALS 9308200104 930820 BUSINESS BRIEFS ARROW ELECTRONICS INC ACQUIRED COMPONENTS AGENT LTD A HONG KONGBASED ELECTRONICS DISTRIBUTION COMPANY WITH CUSTOMERS IN SOUTHEAST ASIA CHINA AND KOREA DIGITAL EQUIPMENT CORP WILL CLOSE A GERMAN DISKDRIVE MANUFACTURING PLANT THAT EMPLOYS 600 PEOPLE AS PART OF ITS CONTINUING EFFORT TO CUT OPERATING COSTS MCN CORP AND DESTEC ENERGY INC HAVE AGREED TO OWN DEVELOP AND OPERATE A 150 MILLION GASFUELED COGENERATION PLANT IN LUDINGTON MICH THAT WOULD SELL ELECTRICITY TO CMS ENERGY CORP'S CONSUMERS POWER CO AND PROVIDE STEAM TO AN ADJACENT DOW CHEMICAL CO PLANT ALLEGHENY LUDLUM CORP'S PENDING ACQUISITION OF ATHLONE INDUSTRIES INC CLEARED THE WAITING PERIOD FOR ACTION UNDER FEDERAL ANTITRUST LAWS ATHLONE SHAREHOLDERS WILL VOTE ON THE 107 MILLION TRANSACTION AT A MEETING IN OCTOBER SPARTAN MOTORS INC PLANS TO SPEND ABOUT 2 MILLION TO EXPAND ONE OF ITS MANUFACTURING FACILITIES IN CHARLOTTE MICH TO ALLOW FOR INCREASED PRODUCTION WAREHOUSING AND RESEARCH AND DEVELOPMENT 9308200103 930820 MONEYFUND ASSETS ROSE BY 134 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE 134 BILLION TO 58149 BILLION FROM A REVISED 58015 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 645 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 319 BILLION TO 39239 BILLION THE TRADE GROUP SAID ASSETS OF 404 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 296 BILLION TO 30923 BILLION ASSETS OF 241 RETAIL TAXEXEMPT FUNDS ROSE BY 230 MILLION TO 8316 BILLION ASSETS OF THE 272 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 186 BILLION TO 18910 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEYMARKET FUNDS FELL BY 204 BILLION TO 16806 BILLION ASSETS OF 52 TAXEXEMPT FUNDS ROSE BY 181 MILLION TO 2103 BILLION 9308200102 930820 WHO'S NEWS RURAL/METRO CORP RURAL/METRO CORP SCOTTSDALE ARIZ WARREN S RUSTAND WAS ELECTED A DIRECTOR INCREASING THE BOARD TO EIGHT MR RUSTAND 50 IS CHAIRMAN AND CHIEF EXECUTIVE OF ARAVAIPA CANYON CO RURAL/METRO PROVIDES AMBULANCE FIRE PROTECTION AND OTHER SAFETY RELATED SERVICES 9308200101 930820 PRUDENTIAL PLANS FOR BULK SALE OF REAL ESTATE INSURER'S MOVE TO UNLOAD FORECLOSED PROPERTIES REVERSES MARKET TREND BY MITCHELL PACELLE AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL INSURANCE CO OF AMERICA IS PREPARING TO SELL UP TO 700 MILLION OF FORECLOSED COMMERCIAL REAL ESTATE IN BULK A SIGN THAT INSURANCE COMPANIES THINK THE MARKET IS IMPROVING FOR DISTRESSED PROPERTY UNTIL NOW MOST INSURERS HAVE BEEN RELUCTANT TO UNLOAD TROUBLED REAL ESTATE IN BULK BECAUSE SUCH PROPERTY HAS FETCHED AS LITTLE AS 50 OF THE BOOK VALUE BUT IN RECENT MONTHS WITH MORE POTENTIAL BUYERS IN THE MARKET AND A DWINDLING SUPPLY OF FORECLOSED PROPERTY FROM THE RESOLUTION TRUST CORP SOME INSURERS THINK PRICES ARE READY TO START IMPROVING THERE'S A LOT OF MONEY OUT THERE LOOKING FOR THIS KIND OF PRODUCT SAID FRANK MACDOUGAL HEAD OF PRUDENTIAL REALTY GROUP WE THINK THE WINDOW OF OPPORTUNITY IS THERE THE MONEY IS THERE AND THE TIMING IS GOOD BESIDES NEWARK NJBASED PRUDENTIAL WHICH IS THE NATION'S LARGEST LIFE INSURER SEVERAL OTHER INSURANCE COMPANIES ARE TESTING THE WATERS FOR BULK SALES OF PROPERTY AND BAD LOANS INCLUDING HARTFORD CONNBASED TRAVELERS CORP PACIFIC MUTUAL LIFE INSURANCE CO OF NEWPORT BEACH CALIF AND HARTFORDBASED PHOENIX HOME LIFE MUTUAL INSURANCE CO IF A FEW COMPANIES ARE SUCCESSFUL IN DOING IT YOU WILL SEE A LOT OF OTHERS DO IT PREDICTS FRED TOWNSEND AN INSURANCE CONSULTANT WITH TOWNSEND & SCHUPP IN HARTFORD THAT COULD MEAN A LOT OF PROPERTY WILL COME ONTO THE MARKET THE COUNTRY'S 15 LARGEST INSURERS ALONE HOLD FORECLOSED PROPERTIES WITH A BOOK VALUE OF ABOUT 8 BILLION ACCORDING TO TOWNSEND AND SCHUPP STILL NO ONE EXPECTS A FLOOD OF DISTRESSED PROPERTY ON THE MARKET ANYTIME SOON MOREOVER EVEN A SIZABLE INCREASE ISN'T LIKELY TO DEPRESS PRICES BECAUSE THERE ARE PLENTY OF POTENTIAL BUYERS NOW PARTICULARLY FUNDS SET UP BY INSTITUTIONAL INVESTORS SPECIFICALLY TO BUY TROUBLED REAL ESTATE THESE INSTITUTIONS INCLUDE MORGAN STANLEY & CO GOLDMAN SACHS & CO AND GENERAL ELECTRIC CO'S FINANCE ARM GE CAPITAL CORP LIKE MANY INSURANCE COMPANIES AND BANKS PRUDENTIAL WANTS TO REDUCE ITS EXPOSURE TO THE VOLATILE REAL ESTATE MARKET OF PRUDENTIAL'S 122 BILLION PORTFOLIO OF INVESTED ASSETS AT JUNE 30 24 CONSISTED OF REAL ESTATE AND MORTGAGES ACCORDING TO TOWNSEND & SCHUPP PRUDENTIAL HAS NOT YET FORMALLY OFFERED ITS PROPERTIES FOR SALE BUT IT RECENTLY RETAINED MORGAN STANLEY TO HANDLE THE SALE AND HAS CONTACTED POTENTIAL BUYERS MR MACDOUGAL CAUTIONED THAT A FORMAL SALES EFFORT WILL NOT BEGIN UNTIL THE COMPANY FINALIZES ITS APPRAISAL PROCESS PRUDENTIAL'S PORTFOLIO OF WHICH OFFICE BUILDINGS MAKE UP ABOUT 70 IS CURRENTLY BEING CARRIED ON THE BOOKS AT ROUGHLY 800 MILLION REFLECTING A WRITEDOWN OF UNDISCLOSED SIZE FROM THE ORIGINAL BOOK VALUE WE EXPECT TO SELL IT AT WHAT WE'RE CARRYING IT AT OR CLOSE SAID MR MACDOUGAL WE DON'T WANT TO TAKE THE KIND OF DISCOUNTS THAT WE SAW THE BANKS OR THE RTC TAKE SUGGESTING THAT THE DISCOUNT FROM ORIGINAL FACE VALUE WILL BE LESS THAN 50 INSURANCE EXECUTIVES ARGUE THAT THEIR REAL ESTATE ASSETS ARE WORTH MORE THAN DELINQUENT LOANS HELD BY BANKS MOST OF THE BANK BULK SALES HAVE INVOLVED DELINQUENT LOANS MADE TO FUND CONSTRUCTION INSURANCE COMPANIES TYPICALLY MADE LOANS ON OCCUPIED PROPERTIES AND WERE FORCED TO FORECLOSE WHEN LEASES EXPIRED AND OWNERS WERE FORCED TO LOWER RENTS THE PRUDENTIAL PORTFOLIO WOULD REPRESENT A BRANDNEW UNTESTED PART OF THE BULKSALE MARKET SAID ONE ADVISER TO BANKS AND INSURANCE COMPANIES PRUDENTIAL'S INTEREST IN SELLING PROPERTIES COMES AT A TIME OF HEIGHTENED PRESSURE FROM RATING AGENCIES AND CONSUMER WORRIES ABOUT THE SOLVENCY OF INSURANCE COMPANIES BY MOVING FORECLOSED PROPERITIES OFF THEIR BOOKS INSURERS CAN MAKE THEMSELVES APPEAR STRONGER BUT TO ATTRACT BUYERS THEY MUST PRICE THE PROPERTIES AT CONSIDERABLY LESS THAN THE ORIGINAL LOAN AMOUNTS WHICH REQUIRES TAKING A LOSS IT INVOLVES A TRADEOFF SAID DENNIS YESKEY OF KENNETH LEVENTHAL & CO ANOTHER CONSIDERATION IS NEW CAPITAL RULES GOING INTO EFFECT NEXT YEAR REGULATORS WILL BEGIN GRADING INSURERS ACCORDING TO THE RISKINESS OF THEIR ASSETS AND OPERATIONS FORECLOSED REAL ESTATE IS HEAVILY PENALIZED UNDER THE SCORING SYSTEM 9308200100 930820 INTERNATIONAL ERICSSON DOUBLES PROFIT FOR QUARTER CITES CELLULAR GEAR BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM TELEFON AB LM ERICSSON SAID PRETAX PROFIT DOUBLED IN THE SECOND QUARTER AND ABANDONING AN EARLIER GUARDED FORECAST PREDICTED THAT FULL YEAR PRETAX PROFIT WOULD ALSO AT LEAST DOUBLE THE SWEDISH TELECOMMUNICATIONS GIANT'S PROFIT SURGE WAS FUELED BY SIZZLING SALES OF CELLULAR PHONES AND NETWORK EQUIPMENT BURGEONING FINANCIAL INCOME AND CONTINUING EFFECTS OF AN 18MONTH COSTCUTTING PROGRAM MANAGEMENT'S UPBEAT OUTLOOK WAS REINFORCED BY A SEVENTH CONSECUTIVE QUARTER OF BOOMING ORDERS AND PROSPECTS OF AN IMMINENT CURRENCY WINDFALL DURING THIS YEAR'S FINAL SIX MONTHS BECAUSE OF ITS LONGSTANDING POLICY OF HEDGING FOREIGNEXCHANGE EXPOSURE ERICSSON PROFITS HAVEN'T YET BENEFITTED FROM A 25 DEPRECIATION OF THE SWEDISH KRONA ONCE HEDGING CONTRACTS BEGIN EXPIRING IN THE CURRENT QUARTER OFFICIALS SAID PROFITS EARNED ABROAD AND DENOMINATED IN FOREIGN CURRENCY WILL BE WORTH MUCH MORE WHEN CONVERTED INTO SWEDISH CURRENCY IT PROMISES TO BE QUITE A PAYOFF ONE SENIOR EXECUTIVE ESTIMATED ERICSSON COULD EARN AS MUCH AS AN EXTRA 15 ON ITS ANNUAL NET EXPORTS OF ROUGHLY EIGHT BILLION 1 BILLION KRONOR EVEN WITHOUT THAT CURRENCY BOOST SECONDQUARTER PRETAX PROFIT SOARED TO 858 MILLION KRONOR FROM 422 MILLION KRONOR A YEAR EARLIER ERICSSON'S FIRSTHALF PROFIT RISE WAS EVEN MORE DRAMATIC TO 129 BILLION KRONOR FROM 59 MILLION KRONOR THE PREVIOUS YEAR INDEED THE FIRSTHALF PROFIT TALLY NEARLY MATCHED THE 13 BILLION KRONOR ERICSSON EARNED BEFORE TAX ALL LAST YEAR SO THE LATEST 1993 PROFIT FORECAST OF 26 BILLION KRONOR SEEMS WITHIN EASY REACH HOWEVER CHIEF EXECUTIVE LARS RAMQVIST CAUTIONED THAT SEVERAL KEY MARKETS SUCH AS SPAIN REMAIN MIRED IN DEEP ECONOMIC RECESSIONS DEPRESSING SALES OF PUBLIC SWITCHING EQUIPMENT MEANWHILE BOOMING ORDERS FROM CHINA FOR PUBLIC SWITCHING EQUIPMENT AND CELLULAR SYSTEMS HAVE BEEN THE DRIVING FORCE BEHIND ERICSSON'S ROBUST FIRSTHALF GROWTH HE ADDED BUT CITING THE CHINESE GOVERNMENT'S WORRY ABOUT THE CURRENT TORRID PACE OF ECONOMIC GROWTH MR RAMQVIST WARNED OF A RISK THAT SOME KIND OF STOP OR RESTRICTION ON INVESTMENT MIGHT BE IMPOSED SUDDENLY AT ANY TIME DURING THE NEXT SIX MONTHS SECONDQUARTER SALES CLIMBED 34 TO 1453 BILLION KRONOR THE COMPANY SAID CURRENCY FLUCTUATIONS WHICH HAD AN IMMEDIATE IMPACT ON SALES ACCOUNTED FOR ABOUT HALF THAT INCREASE IN RECENT YEARS ERICSSON'S JOINT CELLULAR SYSTEMS VENTURE WITH GENERAL ELECTRIC CO OF THE US HAS STEADILY BOOSTED SALES TO US NETWORK OPERATORS HOWEVER MANY ANALYSTS FRET THAT ERICSSON'S ADVANCE COULD SLOW AS A RESULT OF PLANS BY AMERICAN TELEPHONE & TELEGRAPH CO TO ACCELERATE THE TAKEOVER OF MCCAW CELLULAR COMMUNICATIONS CO MCCAW HAS BEEN ERICSSON'S BIGGEST CUSTOMER MAKING UP ALMOST HALF THE SWEDISH COMPANY'S US CELLULAR SALES MR RAMQVIST ACKNOWLEDGED THE RISK THAT ERICSSON MAY EVENTUALLY BE SQUEEZED OUT AS AT&T WHICH ALSO MANUFACTURERS CELLULAR SYSTEMS EQUIPMENT BEGINS TO USE MORE OF ITS OWN PRODUCTS BUT HE SCOFFED AT SUGGESTIONS THAT AT&T MIGHT ACTUALLY PULL ERICSSON EQUIPMENT OUT OF EXISTING MCCAW NETWORKS WE UPGRADE MCCAW NETWORKS CONTINUOUSLY HE SAID INCLUDING A RECENT 150 MILLION ORDER FOR A DALLAS CELLULAR NETWORK WHICH MCCAW GAVE TO ERICSSON WITH AT&T'S BLESSING 9308200098 930820 WHO'S NEWS CRACKER BARREL OLD COUNTRY STORE INC CRACKER BARREL OLD COUNTRY STORE INC LEBANON TENN REGINALD M MUDD VICE PRESIDENT RESTAURANT OPERATIONS WAS NAMED SENIOR VICE PRESIDENT OF OPERATIONS AT THIS RESTAURANT CHAIN MR MUDD SUCCEEDS DONALD M TURNER WHO WILL RETIRE IN NOVEMBER FOR HEALTH REASONS THE COMPANY SAID 9308200097 930820 SCOTTS CO IS HAVING GREAT YEAR' EXPECTS SALES GAIN OF 1315 SPECIAL TO THE WALL STREET JOURNAL MARYSVILLE OHIO SCOTTS CO IS HAVING A GREAT YEAR BECAUSE AMERICANS ARE SPENDING RECORD AMOUNTS TO MAINTAIN THEIR LAWNS GARDENS HOUSE PLANTS AND GOLF COURSES SAID THEODORE J HOST PRESIDENT AND CHIEF OPERATING OFFICER SALES FOR THE YEAR ENDING SEPT 30 WILL RISE 13 TO 15 TO BETWEEN 460 MILLION AND 475 MILLION MR HOST SAID SALES IN FISCAL 1992 WERE 4128 MILLION MR HOST DECLINED TO MAKE A SPECIFIC EARNINGS FORECAST BUT MANAGEMENT DOESN'T ARGUE WITH ANALYST ESTIMATES IN THE RANGE OF 110 TO 114 A SHARE IN FISCAL 1992 SCOTTS'S OPERATING EARNINGS TOTALED 151 MILLION OR 84 CENTS A SHARE AND NET INCOME WAS 156 MILLION OR 87 CENTS A SHARE AFTER EXTRAORDINARY ITEMS MR HOST SAID IN AN INTERVIEW THAT 140 NEW PRODUCTS INTRODUCED FOR THE 1993 GROWING SEASON AND AN ADDITIONAL 150 NEW ITEMS PLANNED FOR THE 1994 SEASON ARE HELPING THE COMPANY TO INCREASE ITS ALREADY STRONG MARKET POSITION REFORMULATED FERTILIZERS OFFER GREAT GROWTH POTENTIAL HE SAID SCOTTS BELIEVES IT HAS A 48 SHARE OF THE LAWN FERTILIZER AND CHEMICALS MARKET AND WE CAN HAVE 60 EVENTUALLY THE EXECUTIVE SAID HE ADDED THAT PRIVATELABEL BRANDS HAVE BEEN LOSING MARKET SHARE MR HOST SAID SOME OF SCOTTS'S GROWTH ARISES FROM EXPANSION BY BIG RETAIL CHAINS THAT CARRY ITS PRODUCTS HOME DEPOT WALMART STORES KMART CORP AND ITS BUILDERS SQUARE UNIT AND HECHINGER CO ACCOUNT FOR 48 OF SCOTTS'S CONSUMER PRODUCTS SALES THIS YEAR HE SAID UP FROM 42 A YEAR AGO OUR MAJOR CUSTOMERS ARE GROWING AND WE'RE GROWING RIGHT ALONG WITH THEM MR HOST SAID FURTHERMORE SCOTTS IS SPENDING MORE AGGRESSIVELY FOR PRODUCT DEVELOPMENT AND PROMOTION THAN IT WAS ABLE TO DO WHEN IT WAS CLOSELY HELD AND MORE HIGHLY LEVERAGED HE SAID FOR INSTANCE SCOTTS BOOSTED ADVERTISING SPENDING 45 TO 50 THIS FISCAL YEAR MR HOST SAID AND ANOTHER SIZABLE INCREASE IS PLANNED FOR 1994 SCOTTS SEES AN OPPORTUNITY FOR RAPID GROWTH IN COMPOSTING GRASS CLIPPINGS LEAVES AND OTHER YARD WASTES SOLVING A DISPOSAL PROBLEM FOR MUNICIPALITIES WHILE OBTAINING RAW MATERIALS FOR ITS POTTING SOILS MR HOST SAID THE COMPOSTING BUSINESS LAUNCHED IN 1992 WILL HAVE REVENUE THIS YEAR OF 25 MILLION AND MAY GROW TO 30 MILLION WITHIN FIVE TO SEVEN YEARS HE SAID 9308200096 930820 WHO'S NEWS NETWORTH INC NETWORTH INC IRVING TEXAS MARK FLOYD CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER RESIGNED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF EFFICIENT NETWORKS INC A DALLAS STARTUP THAT MAKES PRODUCTS FOR AUTOMATED TELLER MACHINE NETWORKS MR FLOYD 37 YEARS OLD DESCRIBED HIS DEPARTURE FROM THE MAKER OF COMPUTER NETWORKING PRODUCTS AS AMICABLE HE WILL CONTINUE AS A CONSULTANT THROUGH SEPTEMBER EFFICIENT NETWORKS INC MAKES ASYNCHRONOUS TRANSFER MODE PRODUCTS WHICH ALLOW INCOMPATIBLE VOICE VIDEO AND DATA TO OPERATE ON THE SAME NETWORK A WHO'S NEWS ITEM FRIDAY INCORRECTLY DESCRIBED THE COMPANY'S BUSINESS 9308200094 930820 TECHNOLOGY & HEALTH GENETIC PUZZLE IS SOLVED PAVING WAY TO ADVANCES IN THERAPY FOR LEUKEMIA BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS SAID THEY SOLVED A GENETIC PUZZLE THAT PAVES THE WAY FOR A SIGNIFICANT IMPROVEMENT IN BOTH DIAGNOSIS AND TREATMENT OF A COMMON ADULT LEUKEMIA RESEARCHERS AT THE UNIVERSITY OF MICHIGAN MEDICAL CENTER ANN ARBOR SAID THEY IDENTIFIED TWO GENES THAT FUSE TOGETHER IN AN ABNORMAL CHROMOSOME FOUND IN PATIENTS WITH A FORM OF ADULT MYELOID LEUKEMIA THE FUSED GENES APPARENTLY PRODUCE A PROTEIN THAT CAUSES THE PROLIFERATION OF MALIGNANT BONEMARROW CELLS THE FINDING MEANS THAT A RAPID AND SENSITIVE BLOOD TEST CAN BE PERFORMED TO MORE ACCURATELY DIAGNOSE THE DISEASE AND ESPECIALLY TO DETECT ITS RECURRENCE IN PATIENTS WHO HAVE RELAPSED AFTER CHEMOTHERAPY RESULTED IN A REMISSION EARLY DIAGNOSIS INCREASES CHANCES OF REMISSION RESEARCHERS SAID AND EARLY DETECTION OF RELAPSE BEFORE MORE ADVANCED SYMPTOMS EMERGE CAN PROLONG SURVIVAL ADULT MYELOID LEUKEMIA IS A CANCER AFFECTING ABOUT 10000 PEOPLE A YEAR IN WHICH ABNORMAL IMMATURE WHITE BLOOD CELLS MULTIPLY WILDLY IN THE BONE MARROW AND THEN ACCUMULATE BOTH IN THE BONE MARROW AND THE BLOODSTREAM ABOUT 20 OF PATIENTS HAVE A TYPE OF THE DISEASE KNOWN AS M4 SCIENTISTS HAVE PREVIOUSLY ASSOCIATED THE M4 VERSION WITH A STRANGE VARIATION OF CHROMOSOME 16 ONE OF THE 23 PAIRS OF CHROMOSOMES THAT FORM A PERSON'S GENETIC MAKEUP IN THE NEW FINDINGS BEING PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL SCIENCE RESEARCHERS REPORTED THAT THEY HAVE DETERMINED THAT ONE OF THE FUSED GENES PRODUCES A SOCALLED TRANSCRIPTION FACTOR THAT SERVES AS A MASTER SWITCH TO REGULATE THE EXPRESSION OF OTHER GENES ALL CELLS CONTAIN IDENTICAL VERSIONS OF GENETIC MATERIAL TRANSCRIPTION FACTORS ACT TO TURN SOME GENES ON AND SOME OFF DEPENDING ON THE FUNCTION OF THE CELL IN LEUKEMIA PATIENTS THE FUSION OF GENES APPARENTLY CAUSES THE TRANSCRIPTION FACTOR TO RUN AMOK SAID FRANCIS COLLINS LEADER OF THE RESEARCH TEAM IT IS STUCK IN THE ON' POSITION CAUSING CELLS IN THE BONE MARROW TO GROW OUT OF CONTROL THE OTHER PORTION OF THE FUSED GENES IS FOR A STRUCTURAL PROTEIN CALLED MYOSIN THE RESEARCHERS WHO ALSO INCLUDED SCIENTISTS FROM THE M D ANDERSON CANCER CENTER AT THE UNIVERSITY OF TEXAS HOUSTON USED NEW GENEHUNTING TECHNIQUES TO TAKE FRAGMENTS OF MATERIAL CATALOGED IN THE SCIENTIFIC COMMUNITY'S GROWING GENETIC LIBRARY AND TEST IT ON THE DNA OF SIX LEUKEMIA PATIENTS THE TESTS HOMED IN ON ABNORMAL SEQUENCES OF GENETIC MATERIAL ENABLING RESEACHERS TO FISH THEM OUT AND PINPOINT THE LOCATION OF THE FUSED GENES THE RESULTS HAVE BEEN CONFIRMED ON ADDITIONAL PATIENTS SINCE THE PAPER WAS COMPLETED DR COLLINS SAID PU LIU A SCIENTIST AT THE UNIVERSITY OF MICHIGAN WAS LEAD AUTHOR OF THE STUDY BASED ON THE FINDING A BLOOD TEST IS LIKELY TO BE USED TO MONITOR TREATMENT OF THE LEUKEMIA WITHIN SEVERAL MONTHS DR COLLINS SAID OVER SEVERAL YEARS THE REPORT COULD LEAD TO TREATMENTS THAT ARE MORE EFFECTIVE THAN CURRENT REGIMENS OF CHEMOTHERAPY HE ADDED BETWEEN 60 AND 70 OF ADULT MYELOID LEUKEMIA PATIENTS RESPOND TO CURRENTLYAVAILABLE TREATMENT ABOUT 20 HAVE PROLONGED REMISSION IN APRIL DR COLLINS BECAME DIRECTOR OF THE HUMAN GENOME PROJECT THE EFFORT TO IDENTIFY AND MAP ALL OF THE HUMAN GENES HE SAID THE CURRENT STUDY REFLECTS THE PROJECT'S INCREASING VALUE IN EXPANDING THE UNDERSTANDING OF HUMAN DISEASES UNTIL RECENTLY THE CURRENT STUDY WOULD HAVE TAKEN 10 YEARS TO COMPLETE HE SAID IT WAS COMPLETED WITHIN A YEAR 9308200093 930820 GM PLANS TO IDLE PLANT IN DETROIT NEXT WEEK DETROIT GENERAL MOTORS CORP SAID ITS DETROIT ASSEMBLY PLANT WON'T OPERATE NEXT WEEK BECAUSE OF SLOW ORDERS FOR THE GMC AND CHEVY CHASSIS IT BUILDS FOR USE IN MOTOR HOMES COMMERCIAL AND SPECIALTY VEHICLES SEPARATELY GM SAID IT PLANS OVERTIME THIS WEEK AND NEXT AT FACTORIES IN MORAINE OHIO FORT WAYNE IND AND BOTH ITS CAR AND TRUCK OPERATIONS IN FLINT MICH AND OSHAWA ONT FORD MOTOR CO SAID ITS OAKVILLE ONT FORD TEMPO AND MERCURY TOPAZ PLANT AND A TRUCK FACILITY IN WAYNE MICH WERE IDLED AGAIN THIS WEEK FOR MODEL CHANGEOVER AND SUMMER VACATION RESPECTIVELY THE NO 2 AUTO MAKER SAID IT HAS LOGGED OVERTIME THIS WEEK AT CAR ASSEMBLY PLANTS IN KANSAS CITY ATLANTA AND LORAIN OHIO AND TRUCK PLANTS IN ST LOUIS EDISON NJ LORAIN OHIO LOUISVILLE KY AND ST PAUL MINN CHRYSLER CORP SAID IT PLANS OVERTIME TOMORROW AND NEXT WEEK AT ASSEMBLY PLANTS IN NEWARK DEL TOLEDO OHIO ST LOUIS DETROIT STERLING HEIGHTS MICH AND WINDSOR AND BRAMALEA ONT ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 189677 CARS AND TRUCKS THIS WEEK DOWN 28 FROM THE 195151 VEHICLES BUILT A YEAR AGO 9308200092 930820 BUSINESS BRIEF MEAD CORP DATA CENTRAL UNIT TO DISMISS WORKERS 95 OF STAFF MEAD DATA CENTRAL INC A MEAD CORP UNIT SAID IT WILL CUT 400 HEADQUARTERS WORKERS OR 95 OF ITS OVERALL WORK FORCE IN AN EFFORT TO TRIM COSTS THE MOVE IS PART OF A PREVIOUSLY ANNOUNCED PROGRAM AIMED AT GENERATING 50 MILLION IN ANNUAL SAVINGS MEAD DATA PROVIDES THE LEXIS/NEXIS DATABASE A SPOKESMAN SAID IN DAYTON OHIO THAT THE UNIT GREW RAPIDLY OVER THE PAST 10 YEARS AND NOW NEEDS TO TRIM SOME OF THE BLOAT HE SAID MEAD DATA IS PROFITABLE BUT DECLINED TO DISCLOSE FIGURES 9308200091 930820 ECONOMY WILLIAM DALEY TO HEAD CLINTON'S NAFTA CAMPAIGN WASHINGTON PRESIDENT CLINTON AS EXPECTED NAMED CHICAGO LAWYERLOBBYIST WILLIAM DALEY TO HEAD THE ADMINISTRATION'S CAMPAIGN TO PUSH THE NORTH AMERICAN FREE TRADE AGREEMENT THROUGH A RELUCTANT CONGRESS THE ADMINISTRATION FACES A TOUGH BATTLE IN WHICH IT HAS TO MANEUVER AROUND ATTACKS FROM ENVIRONMENTAL GROUPS LABOR UNIONS AND POWERFUL DEMOCRATS SUCH AS HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI THE ADMINISTRATION WAS HOPING TO DISARM A GOOD PART OF THE OPPOSITION IN SUPPLEMENTAL NAFTA AGREEMENTS IT FINISHED LAST WEEK ON THE ENVIRONMENT AND LABOR BUT THAT STRATEGY HASN'T SUCCEEDED CALLING NAFTA A PATHBREAKING AGREEMENT MR CLINTON TRIED TO DISPEL CRITICISM THAT HE HASN'T PRESSED THE CASE FOR NAFTA HARD ENOUGH HE SAID MR DALEY'S APPOINTMENT SHOULD BE VIEWED AS A SIGNAL OF MY PERSONAL COMMITMENT TO THE ACCORD WITH MEXICO AND CANADA MR DALEY A BROTHER OF CHICAGO MAYOR RICHARD DALEY SAID HE PLANS TO DIVIDE THE CAMPAIGN INTO FIVE PARTS COMMUNICATION SCHEDULING OUTREACH POLICY AND CONGRESSIONAL RELATIONS IT'LL BE A FIRSTRATE OPERATION HE SAID 9308200090 930820 TECHNOLOGY & HEALTH DETECTION MAY EXPLAIN RISE IN PROSTATE CANCER ATLANTA PROSTATE CANCER CASES JUMPED 60 BETWEEN 1986 AND 1991 ACCORDING TO A FEDERAL REPORT HOWEVER RESEARCHERS INDICATED THE INCREASE MAY SIMPLY REFLECT INCREASED DETECTION RESEARCHERS ALSO SAID SURGICAL TREATMENT OF PROSTATE CANCER CONTINUES TO SPREAD WITH OPERATIONS RISING 13FOLD IN THE SIXYEAR PERIOD HOWEVER THERE IS LITTLE EVIDENCE THAT SHOWS THE PROCEDURE PROVIDES ANY REAL BENEFIT FOR MANY MEN ACCORDING TO THE US CENTERS FOR DISEASE CONTROL AND PREVENTION WE JUST DON'T HAVE A MAGIC ANSWER HERE SAID DR GIANFRANCO PEZZINO MEDICAL EPIDEMIOLOGIST WITH THE CDC WE STILL KNOW VERY LITTLE ABOUT PROSTATE CANCER THE DISEASE WHICH KILLS ABOUT 35000 MEN A YEAR IS THE SECONDLEADING CAUSE OF CANCER DEATHS AMONG MEN AFTER LUNG CANCER ABOUT 165000 MALES PROBABLY WILL BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR THE RATE OF REPORTED CASES ROSE TO 1238 PER 100000 MEN IN 1991 FROM ABOUT 80 PER 100000 IN 1986 THE CDC REPORT SAID IN 1986 PHYSICIANS BEGAN USING THE SOCALLED PSA DIAGNOSTIC BLOOD TEST TO DETECT THE DISEASE AT AN EARLIER PRESUMABLY MORE TREATABLE STAGE 9308200089 930820 STEEL IMPORTS IN JUNE ROSE 21 FROM MAY 28 FROM YEAR AGO WASHINGTON US STEEL IMPORTS IN JUNE ROSE 21 FROM MAY AND WERE UP 28 FROM JUNE 1992 JUNE IMPORTS TOTALED 1781000 TONS COMPARED WITH 1467000 TONS IN MAY AND 1394000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS JUNE IMPORTS REPRESENTED 19 OF CONSUMPTION UP FROM 17 IN MAY AND 17 A YEAR EARLIER THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL INC SAID THE INCREASE COMES FROM SEMIFINISHED STEEL WHICH IS PROCESSED BY AMERICAN MILLS STEEL IMPORTS FOR THE FIRST HALF OF 1993 TOTALED 8187000 TONS DOWN 37 FROM 8499000 TONS A YEAR EARLIER THE AISI SAID IMPORT PENETRATION FOR THE FIRST SIX MONTHS OF THE YEAR WAS 16 OF THE MARKET COMPARED WITH 18 A YEAR EARLIER US STEEL EXPORTS FOR JUNE TOTALED 336000 TONS UP 5 FROM 320000 TONS IN MAY AND DOWN 10 FROM 376000 TONS A YEAR EARLIER IN THE FIRST HALF OF THE YEAR EXPORTS TOTALED 2122000 TONS DOWN 69 FROM EXPORTS OF 2279000 TONS A YEAR EARLIER 9308200087 930820 WMX UNIT COMPLETES PURCHASE BIRMINGHAM ALA RUST INTERNATIONAL INC A SUBSIDIARY OF WMX TECHNOLOGIES INC SAID IT COMPLETED THE PURCHASE OF 967 OF THE COMMON STOCK OUTSTANDING OF ENCLEAN INC FOR 675 A SHARE RUST INTERNATIONAL WAS MERGED INTO HOUSTONBASED ENCLEAN THIS WEEK ENCLEAN IS AN INDUSTRIAL AND ENVIRONMENTAL SERVICES COMPANY AND RUST IS AN INDUSTRIAL SERVICES CONCERN 9308200086 930820 PHILIPS TV DECODER CONVERTS SIGNALS SENT BY PHONE LINE BY AH MOORADIAN SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV SAID IT HAS DEVELOPED A PROTOTYPE FOR A COMPACT DIGITAL DECODER TO BE USED ON TOP OF TELEVISION SETS TO CONVERT TV SIGNALS CARRIED OVER TELEPHONE LINES FOR USE BY HOME VIEWERS A SPOKESWOMAN SAID PHILIPS IS THE FIRST COMPANY WITH A DECODER PROTOTYPE IN A COMPACT SIZE FOR CONSUMER USE THERE ARE OTHER MANUFACTURERS WORKING ON THE CONCEPT SHE SAID BUT DECLINED TO IDENTIFY THEM SHE ADDED THAT MODIFIED VERSIONS OF THE DECODER ARE LIKELY TO BE TESTED FOR USE WITH CABLE TV AS WELL THE DECODERS WOULD CONNECT SUPPLIERS OF FILMED ENTERTAINMENT DIRECTLY TO HOMES PHILIPS SAID THAT TYPICALLY HUNDREDS OF MOVIES WILL BE STORED ON A TELEPHONE NETWORK SERVER THE USER AT HOME WILL VIEW AN ONSCREEN CATALOG OF THE AVAILABLE MOVIES AND SELECT THE ONE WANTED THE DIGITAL DECODERS CONVERT 15 MEGABIT DIGITAL TV SIGNALS INTO ANALOG NTSC AND PAL SIGNALS USED TO PRODUCE PICTURES ON CONVENTIONAL TVS THE NTSC STANDARD IS USED IN THE US WHILE PAL IS THE GERMAN STANDARD USED IN SEVERAL EUROPEAN COUNTRIES INCLUDING THE NETHERLANDS THE KEY ELEMENT OF THE NEW PRODUCT IS THAT IT WILL ALLOW TV SIGNALS TO BE TRANSMITTED OVER PHONE LINES RATHER THAN SPECIALIZED TV CABLES PHILIPS SAID IT'S WORKING CLOSELY TO DEVELOP THE PRODUCT WITH ONE MAJOR US TELEPHONE COMPANY BUT DECLINED TO IDENTIFY IT IT'S KNOWN HOWEVER THAT COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO BELL ATLANTIC CORP AND GTE CORP ARE EITHER PLANNING OR TESTING THE VIDEOONDEMAND CONCEPT IN THE US A PHILIPS OFFICIAL SAID THE DECODERS ARE LIKELY TO BE SOLD FIRST IN THE US PHILIPS SAID THAT THE FIRST APPLICATIONS OF THE NEW DIGITAL TERMINALS WILL BE IN THE VIDEO DIAL TONE FORMAT IN THE US WHERE PHONE COMPANIES ARE EXPERIMENTING WITH TRANSMITTING DIGITAL TV SIGNALS INTO HOMES VIA TWISTEDPAIR TELEPHONE LINES BUT THE DECODER TECHNOLOGY CAN BE USED WITH MORE ADVANCED FIBEROPTIC TECHNOLOGY THAT WILL ALLOW THE TERMINALS TO DECODE DIGITAL VIDEO AND AUDIO SIGNALS OVER HUNDREDS OF CHANNELS AN OFFICIAL ADDED THE DECODERS WILL WORK IN WAYS THAT WILL ALLOW THEM TO FUNCTION LIKE VIDEO RECORDERS WITH PLAY STOP AND PAUSE CAPABILITIES THEY WILL ALLOW FOR USERS TO RECEIVE AND MAKE REGULAR PHONE CALLS WHILE VIEWING PROGRAMS TRANSMITTED OVER PHONE LINES PHILIPS SAID BILLING FOR THE TV SERVICES CAN BE SEPARATED FROM BILLING FOR REGULAR PHONE SERVICES THE COMPANY ADDED VIDEOONDEMAND SERVICES ARE SEEN AS A BIG POTENTIAL MARKET FOR PAYTV TRANSMISSION IN THE FUTURE SUBSTANTIALLY BROADENING THE CURRENT HOMEVIEWING SERVICES WHICH ARE LIMITED TO NONINTERACTIVE CABLETV TECHNOLOGY THE SPOKESWOMAN FOR THE DUTCH CONSUMER ELECTRONICS GROUP SAID A LIMITED NUMBER OF PROTOTYPES ARE BEING MADE AVAILABLE TO VIDEOSERVICES PROVIDERS THOSE ARE LARGELY US PHONE COMPANIES THAT WILL BE TESTING THEM IN THE NEXT YEAR OR SO PHILIPS EXPECTS THE INITIAL TESTS TO BE COMPLETED NEXT YEAR 9308200085 930820 ICAHN SEEKS BIG RETURNS FROM ACF BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL CARL ICAHN IS QUIETLY LAUNCHING HIS BIGGEST COUP YET A PLAN TO EXTRACT MORE THAN 1 BILLION IN CASH SECURITIES AND OTHER BENEFITS THROUGH A REFINANCING OF HIS ACF INDUSTRIES INC IF THE FINANCIER CAN COMPLETE THE TRANSACTION IT WILL DWARF HIS RETURNS FROM EARLIER HIGHPROFILE FORAYS SUCH AS TEXACO INC USX AND MOST RECENTLY EII HOLDINGS INC ACF A RAILCAR MANUFACTURING AND LEASING COMPANY HAS BEEN MR ICAHN'S MAIN INVESTMENT VEHICLE SINCE HE BOUGHT IT IN 1984 WHAT HE HAS IN MIND IS A COMPLEX RESHUFFLING OF THE COMPANY'S ASSETS AMID A REFINANCING OF ITS HIGHCOUPON DEBT WHEN THE SMOKE CLEARS MR ICAHN WILL HAVE TAKEN OUT OF ACF INDUSTRIES ITS SIZABLE PORTFOLIO OF JUNK BONDS OWNERSHIP OF ABOUT 6500 RAILCARS AND ALMOST 450 MILLION IN CASH ACF INDUSTRIES EARTH CITY MO WILL BE LEFT WITH FEWER ASSETS AND MORE DEBT INCLUDING A 50 MILLION PENSIONFUND LIABILITY DATING FROM ITS ORIGINAL BUYOUT AND A 150 MILLION IOU FROM A NEW ENTITY OWNED BY MR ICAHN BUT SAY BOND FUND MANAGERS AND ANALYSTS THAT SHOULDN'T PREVENT THE DEAL'S UNDERWRITERS MERRILL LYNCH & CO EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND JEFFERIES GROUP INC'S JEFFERIES & CO FROM SUCCESSFULLY SELLING THE NEW DEBT SECURITIES THE SECURITIES WILL BE SOLD TO THE PUBLIC ALTHOUGH THE COMPANY IS PRIVATE PEOPLE WILL LOOK AT THE DEAL AND SAY IT'S TOO BAD WE'RE GIVING CARL ALL OF THIS MONEY BUT ARE THE BONDS ANY GOOD' SAID PHELPS HOYT A CREDIT ANALYST WITH DUFF & PHELPS/MCM ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING MR ICAHN CONTEMPLATES COMPLETING THE TRANSACTION NEXT MONTH MR HOYT BELIEVES BUYERS WILL LINE UP TO BUY THE BONDS IF THE YIELD TOPS 10 AS HE EXPECTS IT WILL BUT ACF INDUSTRIES' NEW BONDS COULD GET A COOL RECEPTION AMONG BONDHOLDERS WHO HAVE BEEN THWARTED FOR YEARS BY THE COMPANY'S RELUCTANCE TO SHARE INFORMATION IN ORDER TO GET A COPY OF ACF'S ANNUAL REPORT ONE RESEARCH ANALYST HAD TO PROVE HIS COMPANY ONCE TRADED ACF BONDS BY SENDING A COPY OF AN ORDER TICKET MOREOVER A LOT OF PEOPLE OWNED TRANS WORLD AIRLINES BONDS WHICH WERE DEVASTATED IN THE AIRLINE'S CHAPTER 11 BANKRUPTCY PROCEEDINGS MR ICAHN RELINQUISHED HIS STAKE IN TWA AS PART OF A JANUARY SETTLEMENT WITH THE PENSION BENEFIT GUARANTY CORP THAT MAY EVENTUALLY COST HIM AS MUCH AS 145 MILLION HERE'S WHAT MR ICAHN HAS IN MIND ACCORDING TO FILINGS ACF INDUSTRIES OF WHICH MR ICAHN IS THE SOLE OWNER THROUGH A SERIES OF HOLDING COMPANIES IS REFINANCING WHAT REMAINS OF THE HIGHCOUPON DEBT TAKEN ON IN 1984 WITH TWO ISSUES OF SENIOR SECURED NOTES TOTALING 600 MILLION THE NEW DEBT WILL BE SECURED BY HALF OF ACF'S RAILCARS AND A 150 MILLION PROMISSORY NOTE FROM A NEW ENTITY WHOLLY OWNED BY MR ICAHN THE NOTE REPRESENTS IN LARGE PART THE SUM OF EARLIER BORROWINGS FROM ACF INDUSTRIES BY MR ICAHN AND ICAHN HOLDING CORP A COMPANY HE OWNS AS MUCH AS 242 MILLION OF THE NEW ISSUE'S PROCEEDS WILL BE DISTRIBUTED TO HIGHCREST A HOLDING COMPANY FORMED BY MR ICAHN ONE WEEK BEFORE THE FILING THE PROFITABLE PORTFOLIO OF JUNK BONDS VALUED AT ABOUT 350 MILLION WILL BE DISTRIBUTED OUT OF THE RAILCAR COMPANY TO HIGHCREST PART OF A STRATEGY TO SIMPLIFY ACF INDUSTRIES THE FILING INDICATES MR ICAHN ALSO INTENDS TO RAISE CONCURRENTLY AN ADDITIONAL 200 MILLION FROM A ZEROCOUPON BOND ISSUE BY ACF'S PARENT ACF HOLDING THAT MONEY WOULD REVERT TO HIGHCREST IN EXCHANGE ACF HOLDING IS TO RECEIVE A PROMISSORY NOTE FROM HIGHCREST WITH A FACE VALUE OF 240 MILLION ACF HOLDING ALSO WILL GET SECURITIES WITH A STATED VALUE OF 65 MILLION NAMELY PREFERRED STOCK AND DEBT IN TWO NEW COMPANIES THAT BOUGHT 6500 OF ACF INDUSTRIES' MOST SPRUCEDUP RAILCARS IN TWO TRANSACTIONS EARLIER THIS SUMMER THAT WILL LEAVE ACF INDUSTRIES WITH MORE THAN 37000 RAILCARS THE RESULT IS INCREASED PRESSURE ON ACF INDUSTRIES THE RAILCAR MANUFACTURING BUSINESS HAS FINALLY BEGUN TO TURN UP THE BACKLOG IS GROWING AND REDUCED INTEREST EXPENSE WILL CUT 45 MILLION IN ANNUAL COSTS YET THAT IS ALMOST OUTWEIGHED BY THE BURDEN OF ADDITIONAL DEBT DESPITE LOWER INTEREST RATES ACF'S CASHFLOW COVERAGE WILL BARELY NUDGE UP TO ABOUT 16 TIMES THE ANNUAL INTEREST BILL FURTHER ACF SPENT 76 MILLION DURING THE PAST TWO YEARS ALMOST ALL ITS CAPITAL EXPENDITURES ON THE RAILCARS SOLD TO THE TWO ICAHNAFFILIATED COMPANIES LEAVING BEHIND OLDER EQUIPMENT WITH VERY SHORT AVERAGE LEASE LIVES IT'S NOT THAT BAD A BUSINESS BUT HE'S EXTRACTING EVERY OUNCE OF VALUE FROM THIS COMPANY SAYS ROGER KING A HIGHYIELD BOND ANALYST WITH CITICORP OF ALL MR ICAHN'S INVESTMENTS ACF INDUSTRIES MAY WELL PROVE THE MOST LUCRATIVE HE INVESTED A TOKEN SUM TO ACQUIRE THE COMPANY IMMEDIATELY AFTER THE ACQUISITION HE TOOK OUT A 90 MILLION PROFIT BY FORCEFEEDING AN ACF DIVISION TO CHESEBROUGHPOND'S IN EXCHANGE FOR A STAKE HE HAD ACCUMULATED IN THAT COSMETICS COMPANY CHESEBROUGHPOND'S HAS SINCE BEEN ACQUIRED BY UNILEVER NV MR ICAHN ALSO REAPED HANDSOME DIVIDENDS FROM ACF INDUSTRIES OVER THE YEARS TOTALING MORE THAN 128 MILLION SINCE 1989 IF HE COMPLETES HIS PROPOSED TRANSACTION MR ICAHN'S TOTAL TAKE FROM THE COMPANY WOULD APPROACH 13 BILLION BY COMPARISON MR ICAHN NETTED ABOUT 200 MILLION WHEN HE SOLD HIS USX STAKE IN MAY 1991 AFTER FIVE YEARS OF JOUSTING WITH THE STEEL AND OIL COMPANY'S MANAGEMENT HIS PROFITS FROM HIS TEXACO SHARES WHICH HE SOLD IN JUNE 1989 TOPPED 600 MILLION MORE RECENTLY HE HAS SALLIED INTO COMPANIES UNDERGOING RESTRUCTURINGS BUT THE PROFITS HAVE BEEN MUCH SMALLER EARLIER THIS YEAR MR ICAHN SOLD HIS STAKE IN LEASEWAY TRANSPORTATION CORP BONDS FOR A 37 MILLION PROFIT AFTER WADING THROUGH TWO YEARS OF DISPUTES WITH THE COMPANY AND OTHER CREDITORS HE ALSO SOLD HIS STAKE IN DONALD TRUMP'S TAJ MAHAL CASINO FOR ABOUT 140 MILLION ABOUT TWOANDAHALF TIMES WHAT HE PAID FOR IT MR ICAHN MORE THAN DOUBLED HIS 77 MILLION INVESTMENT IN EII HOLDINGS WHICH EMERGED FROM BANKRUPTCY COURT THIS SUMMER RENAMED ASTRUM INTERNATIONAL MR ICAHN REACHED AT HIS HOUSE IN EAST HAMPTON NY SAID HE CAN'T COMMENT BECAUSE THE OFFERING IS STILL IN REGISTRATION WITH THE SEC ADDING I'M ON VACATION 9308200084 930820 WHO'S NEWS UTILX CORP UTILX CORP KENT WASH GRANVILLE W HOLMAN 63 YEARS OLD WAS NAMED ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS UTILITIESSERVICES CONCERN MR HOLMAN UTILX'S CHAIRMAN SUCCEEDS JOHN R POTTER 47 WHO WAS REMOVED FROM THE POSTS BY THE BOARD THE COMPANY SAID THE COMPANY REMOVED MR POTTER BECAUSE UTILX'S REVENUE HAS BEEN FALLING FOR OVER A YEAR AND THE COMPANY WANTS MORE EXPERIENCED LEADERSHIP SAID MICHAEL CORN THE COMPANY'S GENERAL COUNSEL THE COMPANY SAID IT HAS BEGUN A SEARCH FOR A PERMANENT PRESIDENT AND CEO 9308200083 930820 MAN IS CHARGED IN 400 MILLION SCHEME INVOLVING BROKERS' TRADES IN TREASURIES BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MARYLAND MAN WAS INDICTED ON CHARGES THAT HE FRAUDULENTLY INDUCED SEVERAL BROKERDEALERS TO TRADE MORE THAN 400 MILLION IN US TREASURY SECURITIES THE ALLEGED SCHEME LEFT THE BROKERAGE HOUSES AND DEALERS WITH LOSSES OF MORE THAN 500000 PROSECUTORS CHARGED IN THE INDICTMENT THAT DANIEL O TEYIBO WAS ABLE TO ORDER THE TRADES BY MISREPRESENTING HIMSELF AND BY PROVIDING BOGUS FINANCIAL STATEMENTS TO THE FIRMS IF THE TRADES MADE MONEY MR TEYIBO POCKETED THE PROFIT PROSECUTORS SAID ALTHOUGH HE HADN'T PUT UP ANY MONEY IF THE TRADES HAD A LOSS HE REFUSED TO PAY FOR THE TRANSACTIONS HE HAD ORDERED SUCH A SCHEME IS KNOWN AS FREE RIDING THE INDICTMENT HANDED DOWN YESTERDAY BY A FEDERAL GRAND JURY IN NEW YORK CHARGED MR TEYIBO OF ROCKVILLE WITH 17 COUNTS OF WIRE FRAUD AND SECURITIES FRAUD THE INDICTMENT ALLEGED THAT MR TEYIBO USING ALIASES AND PHONY CORPORATION NAMES PLACED TRADING ORDERS OVER THE PHONE WITH BROKERDEALERS THE BIGGEST TRADES LISTED IN THE INDICTMENT INCLUDE 165 MILLION WITH GOLDMAN SACHS & CO AND 160 MILLION WITH HARRIS GOVERNMENT SECURITIES INC THE GOLDMAN SACHS TRADE HAD A LOSS OF 3500 AND THE HARRIS TRADE HAD A LOSS OF ABOUT 194000 PROSECUTORS SAID THE US ATTORNEY'S OFFICE IN NEW YORK SAID OTHER LOSSES INCLUDED NIKKO SECURITIES CO INTERNATIONAL INC 191000 PRUDENTIAL SECURITIES INC 114000 DOLEY SECURITIES INC AND ITS CLEARINGHOUSE BEAR STEARNS SECURITIES CORP 30000 AND UNION BANK OF SWITZERLAND SECURITIES INC 18000 GOLDMAN SACHS DECLINED TO DISCUSS THE CASE NIKKO PRUDENTIAL HARRIS AND BEAR STEARNS DIDN'T RESPOND TO REQUESTS FOR COMMENT UNION BANK OF SWITZERLAND COULDN'T BE REACHED DOLEY SAID IT NEVER CONDUCTED A TRANSACTION WITH MR TEYIBO AND THAT THE FIRM WASN'T AFFECTED BY THE TRADING DESCRIBED IN THE INDICTMENT THE INDICTMENT SAID PARIBAS CORP DEUTSCHE BANK GOVERNMENT SECURITIES INC DEAN WITTER REYNOLDS INC AND MABON SECURITIES CORP REFUSED TO PLACE TRADES FOR MR TEYIBO BROKERDEALERS LEND MONEY TO INVESTORS TO BUY TREASURY SECURITIES BUT NORMALLY ONLY IF THE INVESTORS PRESENT DOCUMENTS PROVING THEY MEET CERTAIN CAPITAL AND CREDIT REQUIREMENTS MR TEYIBO IS ALLEGED TO HAVE PRESENTED FALSE DOCUMENTS IN ORDER TO SATISFY THOSE REQUIREMENTS MR TEYIBO WAS ARRESTED AT HIS HOME AND ARRAIGNED IN FEDERAL COURT IN BALTIMORE YESTERDAY BEFORE BEING TRANFERRED TO THE CUSTODY OF FEDERAL AUTHORITIES IN NEW YORK HE COULDN'T BE REACHED FOR COMMENT THE SECURITIES AND EXCHANGE COMMISSION ATTEMPTED TO HALT MR TEYIBO'S ACTIVITIES IN DECEMBER WHEN THE AGENCY FILED A CIVIL SUIT SEEKING A RESTRAINING ORDER IN FEDERAL COURT IN BALTIMORE IN THE SEC CASE US DISTRICT JUDGE BENSON LEGG PLACED A FREEZE ON MR TEYIBO'S ASSETS INCLUDING THE GAINS HE ALLEGEDLY COLLECTED FROM THE TRADING THE JUDGE ALSO PROHIBITED MR TEYIBO FROM MAKING FURTHER TRADES A DIRECTIVE THE SEC CONTENDS HE IGNORED ACCORDING TO THOMAS SJOBLOM ASSISTANT CHIEF LITIGATION COUNSEL THE SEC ALSO MAINTAINS THAT THE TOTAL TRADES IN THE SCHEME COULD AMOUNT TO 1 BILLION AND INVOLVE AS MANY AS 30 BROKERDEALERS THE SEC SUIT HAS BEEN ON HOLD SINCE EARLY SUMMER WHEN MR TEYIBO APPEARED IN COURT WITH LAWYERS FOR THE FIRST TIME ASKING THAT HIS ASSETS BE RELEASED TO ALLOW HIM TO RETAIN AN ATTORNEY WITH SECURITIES EXPERTISE MR SJOBLOM SAID HE HAS YET TO HEAR FROM A LAWYER FOR MR TEYIBO AND IS ASKING FOR A STATUS CONFERENCE WITH JUDGE LEGG MR TEYIBO PRIMARILY HAS REPRESENTED HIMSELF IN THE CIVIL LITIGATION CHRISTI HARLAN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9308200082 930820 MESA INC COMPLETES NOTE SWAP DALLAS MESA INC SAID ITS 600 MILLION EXCHANGE OFFER TO SUBORDINATED NOTE HOLDERS IS COMPLETED ALLOWING THE COMPANY TO DEFER OVER 150 MILLION OF CASH INTEREST PAYMENTS THROUGH 1995 AS PART OF THE EXCHANGE HOLDERS OF 586 MILLION OF 600 MILLION OF SUBORDINATED NOTES AGREED TO ACCEPT A PACKAGE OF NEW NOTES AND CASH AND TO DEFER INTEREST PAYMENTS THE NATURAL GAS COMPANY SAID COMPLETING THE EXCHANGE SUBSTANTIALLY REDUCES NEAR TERM LIQUIDITY ISSUES AND INCREASES FINANCIAL FLEXIBILITY WITH THIS EXCHANGE THE COMPANY SAID ITS DEBT RESTRUCTURING IS FINISHED THE COMPANY WILL NOW FOCUS ON PAYING DOWN AND REFINANCING DEBT MESA HAS ABOUT 12 BILLION IN LONGTERM DEBT 9308200081 930820 INTERNATIONAL AUSTRALIAN PAYTV HINGES ON FIFTHRANKED BIDDERS SPECIAL TO THE WALL STREET JOURNAL CANBERRA AUSTRALIA AUSTRALIA APPEARS TO BE HAVING TROUBLE GRANTING LICENSES FOR SATELLITE TV THE DEPARTMENT OF TRANSPORT AND COMMUNICATIONS IS NOW OFFERING TWO LICENSES FOR SATELLITE PAYTV TO THE FIFTHRANKED BIDDERS IN THE TENDER PROCESS HELD EARLIER THIS YEAR DAVID BEDDALL THE MINISTER FOR COMMUNICATIONS SAID THE FOURTHRANKED BIDDERS WITHDREW THEIR BIDS BEFORE WEDNESDAY'S DEADLINE REQUIRING A DEPOSIT OF 5 OF THEIR BIDS THE BIDDERS WHO RANKED SECOND AND THIRD ALSO HAD WITHDRAWN BEFORE THEIR DEPOSIT PAYMENT DEADLINE MR BEDDALL HASN'T DISCLOSED THE NAMES OF ANY SUBSEQUENT BIDDERS AFTER THE ANNOUNCEMENT OF THE ORIGINAL WINNERS IN APRIL TWO SMALL AND RELATIVELY UNKNOWN COMPANIES HI VISION LTD AND UCOM PTY LTD BEAT SEVERAL BIG INTERNATIONAL OPERATORS INCLUDING NEWS CORP AND TIME WARNER INC BY BIDDING 212 MILLION AUSTRALIAN DOLLARS US1433 MILLION AND A177 MILLION RESPECTIVELY FOR A LICENSE FOR EACH COMPANY BECAUSE HI VISION AND UCOM FAILED TO COME UP WITH THEIR DEPOSIT MONEY THE NEXT HIGHEST BIDDERS WERE CONTACTED 9308200080 930820 INDUSTRY FOCUS TV RADIO STATION SALES ARE GETTING GOOD RECEPTIONS BETTER ECONOMY AND READILY AVAILABLE FINANCING HELP PRICES TO REBOUND BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BIDDING IS FRENZIED AND THE PRICES ARE HEADING NORTH OF 140 MILLION IN A LITTLEWATCHED MEDIA AUCTION UNDER WAY YET THE PRIZE SEEMS UNDERWHELMING THREE TELEVISION STATIONS ON THE SNOWY UHF PORTION OF THE DIAL ALL OF WHICH WERE IN BANKRUPTCY PROCEEDINGS JUST FIVE YEARS AGO THAT IS PERHAPS THE BEST SIGN THAT THE MARKET FOR TV AND RADIO STATIONS ACHING FOR SEVERAL YEARS IN A HANGOVER FROM THE EXCESSES OF THE 1980S IS COMING BACK THE THREE UHF STATIONS IN CHICAGO PHILADELPHIA AND MIAMI WERE ONCE PART OF GRANT BROADCASTING SYSTEM INC WHICH STANDS AS ONE OF THE MOST DRAMATIC FAILURES IN THE DELUGE OF DEBTLADEN STATION DEALS OF THE 1980S NOW OWNED BY THE SUCCESSOR COMPANY COMBINED BROADCASTING INC THEY HAVE CAUGHT THE INTEREST OF SUCH MAJOR PLAYERS AS NEWS CORP'S FOX INC PARAMOUNT COMMUNICATIONS INC CHRISCRAFT INDUSTRIES INC AND SPANISHLANGUAGE UNIVISION HOLDINGS THE FIRST OF THE THREE WAS SNATCHED UP THIS WEEK WHEN FOX AGREED TO PAY WHAT SOURCES SAY IS UPWARD OF 55 MILLION FOR THE PHILADELPHIA STATION WGBS THAT AMOUNTS TO A PRICEY LEVEL OF ALMOST 10 TIMES THE STATION'S ANNUAL CASH FLOW THE OTHER TWO ARE EXPECTED TO BE SOLD THIS MONTH FOX'S MOVE BROUGHT AN IMMEDIATE REBUKE FROM PARAMOUNT WHICH OWNS THE FOX AFFILIATE IN TOWN WTXF AND WILL NOW LOSE THE FOX LINEUP WE ARE SHOCKED AND OUTRAGED THAT WTXF AS A LONGSTANDING LOYAL FOX AFFILIATE WILL LOSE ITS AFFILIATION PARAMOUNT SAID FOX OFFICIALS DECLINED TO RETURN FIRE ALTHOUGH IT WAS CLEAR THEY VIEWED THE RIVAL'S BROADSIDE AS SO MUCH SOUR GRAPES PARAMOUNT TOO HAD LOOKED AT BUYING THE UHF OUTLET TV STATIONS IN INCREASING NUMBERS HAVE BEEN CHANGING HANDS THIS YEAR AND THE TRADING IN RADIO STATIONS IS APPROACHING THE FRENETIC IN THE FIRST HALF OF THIS YEAR SOME 432 RADIO STATIONS CHANGED HANDS AND 28 TV STATIONS WERE SOLD WELL ABOVE THE RECENT PACE ACCORDING TO PAUL KAGAN ASSOCIATES INC PARAMOUNT ADDED A DETROIT OUTLET TO ITS TV STATION PROPERTIES IN JUNE FOR AN ESTIMATED 100 MILLION CLEAR CHANNEL COMMUNICATIONS INC PAID 36 MILLION FOR A MINNEAPOLIS TELEVISION STATION THIS MONTH IN RADIO A DEAL IS ANNOUNCED NEARLY EVERY WEEK IN JUNE INFINITY BROADCASTING CORP AGREED TO PAY A RECORD 110 MILLION FOR KRTHFM IN LOS ANGELES IT ALREADY OWNS 21 RADIO STATIONS AND HAS ANOTHER DEAL TO BUY ONE MORE THE RECOVERY IS DUE TO A FEW SIMPLE FACTORS THE ECONOMY IS PICKING UP BODING WELL FOR THE ADVERTISING THAT PAYS A STATION'S BILLS FINANCING IS BECOMING MORE READILY AVAILABLE HELPED BY EVER LOWER INTEREST RATES AND CHANGING FEDERAL RULES HAVE MADE OWNERSHIP OF TV AND RADIO OUTLETS ALIKE ALL THE MORE ATTRACTIVE BUT ON THE TELEVISION SIDE IN PARTICULAR THIS REBOUND MAY NEVER APPROACH THE SPECULATIVE MANIA OF THE '80S THE STATION BUSINESS HAS EMERGED AS A CHASTENED AND CAUTIOUS INDUSTRY STILL DAUNTED BY THE DEBTLADEN AND HIGHFLYING FAILURES OF SOME OF THE RICHEST DEALS OF THE PAST DECADE GRANT GILLETT HOLDINGS INC SCI TELEVISION INC AND TVX BROADCAST GROUP AMONG THEM EVEN IN THE CURRENT REBOUND SOME STATIONS IN SOME MARKETS AREN'T COMMANDING HIGHER PRICES AT ALL CAUTIONS MICHAEL GARIN SENIOR MANAGING DIRECTOR AT INVESTMENT BANKER FURMAN SELZ INC MR GARIN WHO IS HANDLING THE THREESTATION SALE FOR COMBINED BROADCASTING SAYS THE HEAVY INTEREST IN THOSE OUTLETS ISN'T A SIGNAL OF A RENEWED BOOM RATHER IT IS MORE A MATTER OF WELLPLANNED STRATEGIC THINKING IN THE '80S SPECULATORS RATHER THAN SEASONED BROADCAST OPERATORS TOOK ADVANTAGE OF THE EASY LENDING OF HIGHYIELD JUNK BONDS AND DOVE INTO THE TV BUSINESS THEY DROVE STATION PRICES HIGHER AIMING TO MAKE A KILLING IN A BUSINESS THAT WAS THOUGHT TO PROMISE ANNUAL REVENUE GROWTH OF 10 OR MORE THEN THE BUSINESS WENT SOUTH AND ROOKIE OWNERS WERE ILLEQUIPPED TO RESPOND PROGRAMMING COSTS SKYROCKETED AND THE NATIONAL AD MARKET WEAKENED LEAVING MANY GROUPS UNABLE TO MEET DEBT PAYMENTS IN ONE FIT OF EXCESS GILLETT PAID 385 MILLION FOR A SINGLE TELEVISION STATION WTVT IN TAMPA FLA IN 1987 A YEAR AFTER THE GRANT FAILURE A TOTAL OF 125 STATIONS TRADED HANDS THAT YEAR THE VERY TOP OF THE MARKET GRANT BROADCASTING WAS ONE OF THE FIRST CRASHES FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION IN 1986 UNDER THE WEIGHT OF 420 MILLION IN DEBT IT LATER EMERGED AS COMBINED LARGELY IN THE HANDS OF DEBTORS BY 1991 THE RECESSION GROWING CABLE AUDIENCES AND BANKS' DESIRE TO REDUCE THEIR PORTFOLIOS OF HIGHLY LEVERAGED TRANSACTIONS GROUNDED THE HIGHFLIERS NOW PRICES ARE RISING BUT AT MORE REALISTIC LEVELS BY LAST YEAR TV STATIONS WERE SELLING AT AN AVERAGE MULTIPLE OF 86 TIMES THEIR ANNUAL CASH FLOW AND RADIO STATIONS WERE TRADING AT ABOUT 82 TIMES CASH FLOW THAT IS DOWN SHARPLY FROM THE PEAK OF 12 TO 15 TIMES CASH FLOW IN THE LATE 1980S ACCORDING TO CARMEL CALIFBASED PAUL KAGAN THESE DAYS A MULTIPLE OF 10 IS CONSIDERED AT THE HIGH END THOSE WHO ARE BUYING MOREOVER ARE GENERALLY LONGTERM STATION OPERATORS RATHER THAN SPECULATORS I DON'T SEE HOW A SPECULATOR GETS BACK IN SAYS MICHAEL FINKELSTEIN PRESIDENT AND CHIEF EXECUTIVE OF RENAISSANCE COMMUNICATIONS CORP WHICH OWNS SIX TV STATIONS LENDERS AREN'T WILLING TO LET BUYERS LEVERAGE AT MORE THAN SIX OR SEVEN TIMES CASH FLOW REQUIRING HIGHER EQUITY INVESTMENTS UP FRONT TELEVISION OPERATORS ARE INTENT ON EXPANDING MR FINKELSTEIN SAYS BECAUSE CABLE PENETRATION HAS SLOWED AND THE NEW CABLE LAW HAS SHIFTED SOME OF THE BALANCE OF POWER BACK TO BROADCAST STATIONS THEY CAN NOW DEMAND GUARANTEED CABLE CARRIAGE OR NEGOTIATE TO RECEIVE NEW FEES OR OTHER CONSIDERATION FROM CABLE OPERATORS THAT CARRY THEIR PROGRAMMING IN RADIO THE BOOM IS AN OUTGROWTH OF A NEW FEDERAL DUOPOLY RULE THAT ALLOWS ONE OWNER TO BUY AS MANY AS FOUR STATIONS IN A SINGLE MARKET TWO AM AND TWO FM THE RULE TOOK EFFECT IN SEPTEMBER 1992 AND WAS MEANT TO HELP RESCUE THE INDUSTRY THE NATIONAL ASSOCIATION OF BROADCASTERS ESTIMATED IN 1991 THAT 59 OF THE US'S 9500 COMMERCIAL RADIO STATIONS WERE UNPROFITABLE THE DUOPOLY ADVANTAGE WAS A KEY REASON WHY INFINITY PONIED UP A SURPRISING 110 MILLION 10 TIMES TRAILING CASH FLOW FOR THE FM STATION IN LOS ANGELES WHERE IT ALREADY OWNS AN FM OUTLET INFINITY ALSO OWNS FM DUOPOLIES IN BOSTON AND CHICAGO AND IS LOOKING FOR A SECOND FM STATION IN NEW YORK PHILADEPHIA WASHINGTON HOUSTON AND DALLAS WITH A DUOPOLY SAYS INFINITY CHIEF FINANCIAL OFFICER FARID SULEMAN YOU DON'T HAVE THE AMOUNT OF RISKS BECAUSE YOU KNOW THE MARKET NOT TO MENTION THE ADVANTAGE OF LESS DIRECT COMPETITION WE ESSENTIALLY BOUGHT OUR COMPETITOR IN BOSTON SO NOW WE'RE SETTING THE PRICE FROM A REVENUE STANDPOINT MR SULEMAN SAYS ALTHOUGH HIS POINT WOULDN'T NECESSARILY CHEER LOCAL ADVERTISERS BROADCASTERS ALSO RACK UP SAVINGS BY COMBINING BACK OFFICE AND ENGINEERING FUNCTIONS SANFORD C BERNSTEIN ANALYST TOM WOLZIEN ESTIMATES MAJOR RADIO OPERATORS CAN INCREASE THEIR PROFIT MARGINS WITH A DUOPOLY BY 10 TO 15 9308200079 930820 CLINTON SAUDIS SEAL 6 BILLION ORDER FOR JETS PACT WITH STATE CARRIER SEEN AS BOOST TO BOEING MCDONNELL DOUGLAS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON HELPED NEGOTIATE A 6 BILLION ORDER FOR USBUILT COMMERCIAL JETS FROM THE STATERUN AIRLINE IN SAUDI ARABIA ACCORDING TO US SEN PATTY MURRAY OF WASHINGTON STATE THE LONGAWAITED TRANSACTION YET TO BE ANNOUNCED BY EITHER THE AIRLINE OR ANY MANUFACTURERS WOULD BE A SIGNIFICANT BOOST FOR BOEING CO AND MCDONNELL DOUGLAS CORP WHICH ARE SUFFERING SEVERE PRODUCTION CUTS AND WIDESPREAD LAYOFFS AMID WEAKENING ORDERS AND A DEEPENING FINANCIAL DIVE AMONG AIRLINES BOTH COMPANIES HAVE SOUGHT THE ORDER FOR THE PRESIDENT CLOSING THE SALE YIELDS IMPORTANT POLITICAL MILEAGE IN PARTS OF THE COUNTRY SUCH AS THE WEST COAST THAT HAVE BEEN HAMMERED BY THE SIMULTANEOUS SLUMPS IN THE DEFENSE AND COMMERCIAL AIRCRAFT INDUSTRIES SUCH AN ORDER FROM THE CARRIER SAUDIA WHICH SHOULD INCLUDE ABOUT 60 JETS ALSO WOULD EFFECTIVELY STOP THE EUROPEAN JETMAKING CONSORTIUM AIRBUS INDUSTRIE FROM SECURING ANY SUBSTANTIAL SHARE OF SAUDIA FUTURE DELIVERIES THE SAUDIA ORDER IS CONSIDERED THE ONLY ORDER OF ITS SIZE ON THE HORIZON IN THE MONTHS AHEAD FOR THE WORLDWIDE COMMERCIAL AIRCRAFT INDUSTRY NO BREAKDOWN WAS AVAILABLE FROM SEN MURRAY OR HER STAFF ON PRECISELY HOW MANY JETS EACH US COMPANY WOULD DELIVER TO SAUDI ARABIA IN THE YEARS AHEAD A SPOKESMAN FOR THE DEMOCRATIC SENATOR CONFIRMED THAT SHE HAD SPOKEN WITH THE PRESIDENT EARLY WEDNESDAY AND HE TOLD HER THAT HE HAD NEGOTIATED PERSONALLY WITH KING FAHD OF SAUDI ARABIA TO CONCLUDE A DEAL FOR THE ORDERS THE MURRAY SPOKESMAN SAID BOTH THE PRESIDENT AND COMMERCE SECRETARY RON BROWN WERE INVOLVED IN THE TALKS SPOKESMEN FOR THE WHITE HOUSE AND BOTH JETMAKERS DECLINED TO COMMENT ON SEN MURRAY'S REMARKS BUT ADMINISTRATION OFFICIALS SAID THEY ARE EXPECTING A DECISION FROM THE SAUDIS SOON AND ARE WILLING TO SEE THE SALE PROCEED AN OFFICIAL AT ONE OF THE AIRCRAFT MAKERS SAID THERE ARE SOME GOOD SIGNS THAT AN ACCORD IS NEAR COMPLETION TO SECURE MOST OF THE SAUDIA ORDER FOR US PRODUCERS BUT NOBODY'S READY TO GO TO THE BANK ANOTHER MANAGER WORRIED THAT SEN MURRAY'S ANNOUNCEMENT COULD HURT THE TRANSACTION AT A CRITICAL TIME AND SHOOT THE GOOSE THAT LAID THE GOLDEN EGG THE CONCERN ARISES PARTLY BECAUSE A SENIOR FRENCH GOVERNMENT OFFICIAL HAD SUGGESTED PUBLICLY EARLIER THIS SUMMER THAT THE FOURNATION AIRBUS CONSORTIUM WOULD WIN ORDERS FOR 44 JETS FROM SAUDIA US MANAGERS SUGGEST THAT PREMATURE PUBLICITY COULD HAVE ANGERED TOP SAUDI OFFICIALS AND LOOSENED ANY AIRBUS EDGE IN NEGOTIATIONS WHILE NO BREAKDOWN IS AVAILABLE ON HOW MANY AIRCRAFT BOEING OR MCDONNELL DOUGLAS WOULD GET TO BUILD IT IS LIKELY SEATTLEBASED BOEING WOULD WIN THE BIGGEST SHARE OF THE VALUE OF THE ORDER THE COMPANY HAS HOPED TO SELL AT LEAST SIX AND PERHAPS AS MANY AS 10 OF ITS 440SEAT 747400 JUMBO JETS TO SAUDIA THOSE JETS SELL FOR 140 MILLION TO 160 MILLION EACH BOEING ALSO HOPES TO SELL BETWEEN 20 AND 25 OF ITS BIG TWOENGINE 767 AND 777 MODELS PLUS AN EQUAL NUMBER OF ITS SMALLER 737 TWINJETS AT BOEING A 45 CUT IN THE PRODUCTION RATE IS CAUSING A LOSS OF 24000 JOBS BY MID1994 A MAJOR SAUDIA ORDER WOULD HELP AVERT A SECOND ROUND OF PRODUCTION CUTS BEING CONSIDERED FOR 1995 HOWEVER MCDONNELL DOUGLAS WHICH IS BASED IN ST LOUIS ALREADY HAS WON ORDERS FROM THE SAUDI GOVERNMENT FOR TWO OF THE BIG MD11 WIDEBODY JETS IT MAKES AT ITS LONG BEACH CALIF COMMERCIAL AIRPLANE FACTORIES AND IT COULD WIN TWO MORE SOON ACCORDING TO PEOPLE FAMILIAR WITH THOSE TALKS THOSE JETS ARE TO BE USED IN SPECIAL FLEET THAT IS NOT A PART OF SAUDIA CALLED THE ROYAL FLIGHT IT IS RESERVED FOR SAUDI ROYALTY AND HIGH GOVERNMENT OFFICIALS BUT MCDONNELL DOUGLAS WHICH ALSO IS SUFFERING FROM LARGESCALE LAYOFFS AND DEEP PRODUCTION CUTS ALSO HOPES TO SELL MD11S AND SMALLER MD90 TWINJETS TO SAUDIA 9308200077 930820 TIME WARNER UNIT PLANS CHINESELANGUAGE SHOWS HONG KONG WARNER BROS INTERNATIONAL TELEVISION DISTRIBUTION PLANS TO PRODUCE CHINESELANGUAGE PROGRAMMING IN ASIA EITHER ALONE OR IN PARTNERSHIP WITH LOCAL COMPANIES ACCORDING TO PRESIDENT MICHAEL J SOLOMON THE MOVE WOULD MAKE THE TIME WARNER INC UNIT THE FIRST MAJOR AMERICAN ENTERTAINMENTPRODUCTION OPERATION TO ESTABLISH A PERMANENT PRODUCTION OPERATION FOR CHINESELANGUAGE PROGRAMMING IN ASIA THE ANNOUNCEMENT FOLLOWS BY THREE WEEKS NEWS THAT NEWS CORP OWNER OF THE TWENTIETH CENTURY FOX FILM COMPANY AND THE FOX BROADCASTING TELEVISION COMPANY HAD PURCHASED 636 OF STAR TV ASIA'S DOMINANT SATELLITE BROADCASTER IN AN AGREEMENT VALUED AT 525 MILLION MR SOLOMON DECLINED TO SAY HOW MUCH WARNER BROS WAS WILLING TO INVEST IN ASIAN PRODUCTION FACILITIES OR DEALS BUT HE INSISTED THAT THE COMPANY WAS PREPARED TO SPEND WHATEVER IT TAKES TO ESTABLISH ITSELF AS A MAJOR PRODUCER OF MAJOR CHINESELANGUAGE PRODUCTIONS WARNER BROS HAS BEEN SELLING IN CHINA WESTERN PROGRAMMING DUBBED IN MANDARIN FOR MORE THAN FOUR YEARS 9308200076 930820 WHO'S NEWS PRUDENTIAL ANNOUNCES CHANGES FOR EXECUTIVES AT INVESTMENT UNITS NEWARK NJ PRUDENTIAL INSURANCE CO OF AMERICA ANNOUNCED SEVERAL EXECUTIVE CHANGES IN ITS INVESTMENT UNITS SEEKING TO LINK INVESTMENT OPERATIONS MORE CLOSELY WITH ITS CORE BUSINESSES OF INDIVIDUAL FINANCIAL SERVICES EMPLOYEE BENEFITS AND INSTITUTIONAL ASSET MANAGEMENTS EUGENE HEIMBERG 60 YEARS OLD WILL BECOME PRESIDENT OF PRUDENTIAL INVESTMENT CO A NEW POSITION MAKING HIM CHIEF INVESTMENT OFFICER FOR PRUDENTIAL'S INSURANCE OPERATIONS FRANK MACDOUGAL CHIEF EXECUTIVE OFFICER OF PRUDENTIAL MORTGAGE CAPITAL 58 ALSO BECOMES CHAIRMAN OF PRUDENTIAL REALTY GROUP SUCCEEDING MR HEIMBERG MILAN JOHNSON 57 WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRUDENTIAL RESIDENTIAL SERVICES CO THE HOLDING COMPANY FOR RESIDENTIAL REAL ESTATE OPERATIONS SUCCEEDING ROBERT E RILEY 63 WHO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRUDENTIAL REINSURANCE CO MARVIN MOSKOWITZ 51 WILL SUCCEED MR JOHNSON AS PRESIDENT OF PRUDENTIAL RESIDENTIAL SERVICES AND RETAINS HIS JOB AS CHIEF EXECUTIVE OFFICER OF RESIDENTIAL SERVICES CORP OF AMERICA JAMES STEVENS 56 WILL MOVE TO PRUDENTIAL ASSET MANAGEMENT GROUP FROM THE COMPANY'S PRIVATE PLACEMENT GROUP GARNETT KEITH 57 VICE CHAIRMAN OF THE BOARD OF PRUDENTIAL REMAINS CHIEF INVESTMENT OFFICER FOR THE COMPANY

15. Wally Weitz — Power of Good Management - Medium

  • ... her a small lump sum of money and introduced her to their stock broker to make sure she would not have trouble making ends meet. She and I went to lunch ...

  • Fall 2014

16. wsj.heldout.text - CMU School of Computer Science

  • ... THROUGH THE FIRST NINE MONTHS OF NINETEEN NINETY TWO TOTALED TWO POINT TWO MILLION DOLLARS OR NINE CENTS A SHARE ON REVENUE OF TWO HUNDRED FORTY FIVE POINT ...

Top Articles
Latest Posts
Article information

Author: Rueben Jacobs

Last Updated: 01/06/2024

Views: 5909

Rating: 4.7 / 5 (77 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Rueben Jacobs

Birthday: 1999-03-14

Address: 951 Caterina Walk, Schambergerside, CA 67667-0896

Phone: +6881806848632

Job: Internal Education Planner

Hobby: Candle making, Cabaret, Poi, Gambling, Rock climbing, Wood carving, Computer programming

Introduction: My name is Rueben Jacobs, I am a cooperative, beautiful, kind, comfortable, glamorous, open, magnificent person who loves writing and wants to share my knowledge and understanding with you.